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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Bank Loan Ratings | 24.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 34.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
| Acuité has downgraded the long-term rating from‘ACUITE BBB' (read as ACUITE triple B) to 'ACUITE BB+' (read as ACUITE double B plus) and short term rating to 'ACUITE A4+ (read as A four plus) from ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.34.00 Cr bank facilities of Agrawal Sponge Private Limited (ASPL). This rating is now an indicative rating and is based on the best available information. The rating has been downgraded on account of information risk. |
| About the Company |
| Incorporated in 2004, Agrawal Sponge Private Limited (ASPL) was taken over by the current directors in 2012. 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. |
| Non-cooperation by the issuer/borrower |
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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 noncooperation 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. |
| Limitation regarding information availability |
| The rating is based on information av ailable from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavoured 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. |
| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon. |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Key Financials: |
| The rated entity has not shared the latest financial statements despite repeated requests. |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on Complexity Levels of the Rated Instrument |
| https://www.acuite.in/view-rating-criteria-55.htm |
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