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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 29.00 | ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 106.00 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 135.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed and withdrawn the long term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs 29.00 Cr. and also withdrawn the long term rating on the Rs 106.00 Cr. proposed bank facilities of Maa Mangla Ispat Private Limited. The rating is now flagged as “Issuer Not Cooperating” based on account of information risk.
The rating has been withdrawn as per Acuite's policy of withdrawal of ratings. The withdrawal is on account of the request received from the company and the No Objection Certificate (NOC) received from State Bank of India. However, the banker has provided their feedback that the conduct of the account is satisfactory. |
| About the Company |
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Incorporated in 2004, Maa Mangla Ispat Private Limited (MMIPL) is a subsidiary of B. R. Sponge & Power Private Limited and currently promoted by Mr. Harshvardhan Garg, Mr. Shashank Garg and Mr. Rohit Agarwal. The company has an installed capacity of 60,000 metric tonne per annum (MTPA) for manufacturing sponge iron, with facility located in Raigarh.
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| About the Group |
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Incorporated in 2003, B. R. Sponge & Power Limited (BRSPL), is engaged in manufacturing of sponge iron and promoted by Mr. Harshvardhan Garg, Mr. Shashank Garg and Mr. Rohit Agarwal. The manufacturing unit of the company is located at Rajamunda, Dist-Sundargarh, Rourkela, Odisha with an installed capacity of 60000 metric tons per annum (MTPA). It acquired acquired the sick unit of MMIPL in 2016.
In 2018, B. R. Sponge & Power Limited (BRSPL) also acquired another sick unit-Maa Shakambari Steel Limited (MSSL), which is also engaged in the manufacturing of sponge iron and MS ingots. Its manufacturing facility is located at the village of Sambalpuri in the Raigarh district of Chhattisgarh. The installed capacities of sponge iron and MS ingots are 60,000 MTPA and 30,000 MTPA respectively. |
| Unsupported Rating |
| Not Applicable |
| 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 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.
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| Limitation regarding information availability: |
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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 ratings based.
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| Rating Sensitivity |
| "No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
| None |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon."
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 507.08 | 468.58 |
| PAT | Rs. Cr. | 61.52 | 46.29 |
| PAT Margin | (%) | 12.13 | 9.88 |
| Total Debt/Tangible Net Worth | Times | 0.61 | 0.23 |
| PBDIT/Interest | Times | 21.57 | 24.09 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on Complexity Levels of the Rated Instrument |
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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.
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