ACUITE BB- | Downgraded | Issuer not co-operating*
-
RBI
Total Outstanding
0.00
59.25
-
-
-
Total Withdrawn
0.00
0.00
-
-
-
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has downgraded the long-term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from 'ACUITE BB' (read as ACUITE double B) on the Rs. 59.25 Cr. bank facilities of Rashmi Sponge Iron And Power Industries Private Limited on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
About the Company
Rashmi Sponge Iron And 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 Agarwal.
About the Group
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 Dev i Agrawal, Mr. Ankur Agrawal and Mr. Amol Agarwal.
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 Agarwal.
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.
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 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.
Limitation regarding information availability
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
"No information provided by the issuer / available for Acuite to comment upon."
ACUITE BB
(Downgraded & Issuer not co-operating* from ACUITE BB+)
09 Jan 2024
Cash Credit
Long Term
59.25
ACUITE BB+
(Reaffirmed & Issuer not co-operating*)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Punjab National Bank
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
59.25
Simple
ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
