Chattisgarh Based, Agrawal Sponge Private Limited (ASPL) was ­Incorporated in 2002. The company is involved in the manufacture of sponge iron with an installed capacity of 66,000 MTPA and MS ingots with an installed capacity of 15,000 MTPA. The manufacturing facility of company is located in Raipur, Chhattisgarh. ASPL’s board of directors include Mr. Kailash Chand Agrawal, Mrs. Rajni Devi Agrawal, Mr. Ankur Agrawal and Mr. Amol Agrawal.

­Rashmi Sponge Iron & Power Industries Private Limited (RSIPIPL) is a Chhattisgarh based company, incorporated in 1995. The company was initially incorporated as JRG Credits & Holdings Pvt. Ltd. but was taken over by Agrawal family in 2003. RSIPIPL is engaged in the manufacture of sponge iron with an installed capacity of 66,000 MTPA, billets with an installed capacity of 100,000 MTPA and has a captive power plant of 8 MW. The manufacturing unit of the company is located at Siltara Industrial Area in Raipur. The company’s board of directors include Mr. Kailash Chand Agrawal, Mr. Manoj Agrawal, Mr. Ankur Agrawal and Mr. Amol Agrawal.
Incorporated in 2015, Vraj Metaliks Private Limited (VMPL) was taken over by the current directors in 2018. The company is involved in the manufacture of sponge iron with an installed capacity of 66,000 MTPA. The manufacturing facility of company is located in Raipur, Chhattisgarh. VMPL’s board of directors include Mr. Kailash Chand Agrawal, Mr. Manoj Agrawal, Mr. Ankur Agrawal and Mr. Amol Agrawal.
Together the above three companies are referred to as the ‘Rashmi Sponge Group’ (RSG). Currently, the group has installed capacities of sponge iron ~ 200,000 MTPA, billets 100,000 MTPA, MS ingots 15,000 MTPA and captive power plant of 8 MW. In addition, RSIPIPL has a stake of 17.61 per cent in ASPL and 19.88 per cent in VMPL.

­­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.

Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.

This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

­"No information provided by the issuer / available for Acuite to comment upon."

­Not Applicable

­­"No information provided by the issuer / available for Acuite to comment upon."

­Not Applicable

­­Not Applicable

­Not Applicable

­None

­­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.