Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 77.50 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 2.50 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 80.00 - -
 
Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE BB’ (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE Double B Plus) and reaffirmed its short-term rating at ACUITE A4+ (read as ACUITE A Four Plus) on the Rs. 80.00 crore bank facilities of Goa Sponge and Power Limited (GSPL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.

Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings. But despite multiple requests, the company has remained non-cooperative in providing any information. The rating downgrade is on account of information risk.

About the Company
­Incorporated in September 1995, Goa Sponge and Power Limited (GSPL) is a Delhi based company promoted by Mr. Sumit Singla. The Company has a semi-integrated steel plant, engaged in the manufacturing of sponge iron & billets having an installed capacity of 90,000 metric tons per annum (mtpa) and 300 metric tons per day respectively. Manufacturing facility of the company is located in Sanguem, Goa. The company purchases imported coal through domestic traders as its raw material for manufacturing of sponge iron.
 
Unsupported Rating
Not Applicable
 
Non-cooperation by the issuer/borrower
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 available 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.
 
Liquidity Position
No information provided by the issuer / available for Acuite to comment upon.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
None
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 651.74 656.37
PAT Rs. Cr. 4.81 5.48
PAT Margin (%) 0.74 0.83
Total Debt/Tangible Net Worth Times 0.81 0.72
PBDIT/Interest Times 2.49 2.21
Status of non-cooperation with previous CRA
Not Applicable
 
Any other information
None
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
­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. 
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
17 Jul 2023 Cash Credit Long Term 61.00 ACUITE BB+ | Stable (Assigned)
Covid Emergency Line. Long Term 16.50 ACUITE BB+ | Stable (Assigned)
Bank Guarantee (BLR) Short Term 2.50 ACUITE A4+ (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Indian Overseas Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Indian Overseas Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 61.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Indian Overseas Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.50 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
­

Contacts




About Acuité Ratings & Research
© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in