Press Release March 04, 2024 CALSTAR SPONGE LIMITED Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.00	Not Applicable | Withdrawn	-
Bank Loan Ratings	15.30	-	Not Applicable | Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	39.30	-	-

Rating Rationale

­­Acuité has withdrawn the long-term and short-term rating on the Rs.39.30 Cr. bank facilities of Calstar Sponge Limited (CSL). The rating has been withdrawn on Acuite's policy of withdrawal of ratings. The rating has been withdrawn on account of the request received from the company, and the NDC received from the banker. Since the loan availed by the company has been repaid, the rating has been withdrawn.

About the Company

­Calstar Sponge Limited (CSL) was incorporated in the year 2004, established by Mr. Tulsi Ram Agarwal and Mr. Vikas Agarwal for the manufacturing of angles, sponge iron and billets. The current directors of the company are Mr. Tulsi Ram Agarwal, Mr. Vikas Agarwal, Mr. Rajiv Agarwal and Mr. Vinay Agarwal. CSL has two manufacturing facilities in West Bengal near Durgapur at Jamuria and Bamunara. Currently, the company has integrated steel manufacturing facilities for sponge iron (capacity- 1,46,000 MTPA), Billet (capacity – 73,000 MTPA) and a captive power plant of 12 MW in Jamuria Unit. The old Bamunara unit of Billet (capacity – 72,000 MTPA) and Rolling Mill Unit (48000 MTPA) has been rented out since May ’22 of FY23 on a rental income of Rs 2.4cr per annum.

Unsupported Rating

­Not Applicable

Analytical Approach

­Not Applicable

Key Rating Drivers

Strengths

­Not Applicable

Weaknesses

­Not Applicable

Rating Sensitivities

­Not Applicable

Liquidity Position

­Not Applicable

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	362.37	150.39
PAT	Rs. Cr.	18.58	11.53
PAT Margin	(%)	5.13	7.67
Total Debt/Tangible Net Worth	Times	0.12	(0.02)
PBDIT/Interest	Times	89.87	33.77

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 04 Jan 2023 Cash Credit Long Term 24.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Positive) Letter of Credit Short Term 8.50 ACUITE A2 (Upgraded from ACUITE A3+) Bank Guarantee/Letter of Guarantee Short Term 6.80 ACUITE A2 (Upgraded from ACUITE A3+) 07 Feb 2022 Proposed Short Term Bank Facility Short Term 1.80 ACUITE A3+ (Assigned) Bank Guarantee/Letter of Guarantee Short Term 5.00 ACUITE A3+ (Reaffirmed) Letter of Credit Short Term 8.50 ACUITE A3+ (Reaffirmed) Proposed Long Term Bank Facility Long Term 10.00 ACUITE BBB | Positive (Assigned) Cash Credit Long Term 14.00 ACUITE BBB | Positive (Reaffirmed)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Indian Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.80 Simple Not Applicable|Withdrawn Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple Not Applicable|Withdrawn Indian Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.50 Simple Not Applicable|Withdrawn

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Dipti Choudhary Analyst - Rating Operations Tel: 022-49294065 dipti.choudhary@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.