Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 187.80 ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* -
Bank Loan Ratings 25.00 - ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating*
Bank Loan Ratings 20.00 - Not Applicable | Withdrawn
Total Outstanding 0.00 - -
Total Withdrawn 232.80 - -
* The issuer did not co-operate; based on best available information.
 
Rating Rationale

Acuite has downgraded and withdrawn the long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B Plus) from ‘ACUITE A-’ (read as ACUITE A Minus) and short term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A2+' (read as ACUITE A two plus) on the Rs.212.80 Cr. bank facilities Sunil Ispat and Power Limited. The rating has been withdrawn on account of the request received from the company and the NOC (No Objection Certificate) received from the banker.

Acuite has also withdrawn the short-term rating on Rs. 20.00 Cr. facility without assigning any rating as it is a proposed facility of Sunil Ispat And Power Limited. The rating has been withdrawn on account of the request received from the company. 

The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information.The rating is downgraded on account of information risk.
The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.


About the Company
­Incorporated in 1991, Chhattisgarh based  Sunil Ispat and Power Limited (SIPL) is engaged in manufacturing of sponge iron. In 2019, Maruti Ferrous Private Limited had acquired Sunil Ispat & Power Limited (SIPL) through NCLT. Currently, the company has a capacity of 115000 MTPA for Sponge Iron,30000 MTPA for Ferro Alloys and a 20MW captive power plant.Current directors of Sunil Ispat and Power Limited (SIPPL) are Mr. Nishant Khetan, Mr. Ashok Kumar Chowdhary, Mr. Rajesh Kumar Tola, and Mr. Pramod Kumar Tola.
 
About the Group

­Incorporated in 2003, Chhattisgarh based Maruti Ferrous Private Limited (MFPL) is engaged in manufacturing of billets and TMT bars. The company is the flagship entity of the Maruti Group. Currently, MFPL is headed by Mr. Bimal Kishore Khetan, Mr. Ankit Chowdhary and others. The company has a capacity of 96000 MTPA for Billet and 150000 MTPA for TMT bars.

Incorporated in 2003, Chhattisgarh based Ghankun Steels Private Limited (GSPL) is engaged in manufacturing of sponge iron and billets. In 2010, the company became part of the Maruti group. Currently, GSPL is headed by Mr. Bimal Kishore Khetan, Mr. Ankit Chowdhary and others. The company has a capacity of 75000 MTPA for Sponge Iron, 75000 MTPA for Billet (Previously, capacity of 15000 for Billet was present and now capacity of 60000 MTPA got transferred from Hanuman Ispat Private Limited) and a 9.5MW captive power plant.


Incorporated in 2002, Chhattisgarh based Nutan Ispat & Power Private Limited (NIPPL) is engaged in manufacturing of sponge iron, billets and TMT bars. In 2014, the company became part of the Maruti group. Currently, NIPPL is headed by Mr. Bimal Kishore Khetan, Mr. Ankit Chowdhary and others. The company has a capacity of 60000 MTPA for Sponge Iron, 88320 MTPA for Billet, 150000 MTPA for TMT bars and a 10MW captive power plant.

Incorporated in 2020, Chhattisgarh based Karnikripa Power Private Limited . KPPL's  commercial opeartions of manufacturing sponge iron is expected to commence by FY2024. The company is the flagship entity of the Maruti Group. Currently, KPPL is headed by Mr. Saurabh Tola, Mr. Ankit Chowdhary and others. The company has a capacity of 165000 MTPA of Sponge Iron.

The Group also consists of two more entities Hanuman Ispat Private Limited (HIPL) and HSR Re-Rollers Private Limited (HRRPL).

Earlier, Hanuman Ispat Private Limited (HIPL) had a billet capacity of 60000 MTPA, which is now transferred to Ghankun Steels Private Limited.

Further, HSR Re-Rollers Private Limited (HRRPL) is engaged in manufacturing of 60000 MTPA of TMT.

 
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 an 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 Sensitivities
­"No information provided by the issuer/borrower available for Acuite to comment upon."
 
Liquidity Position
­"No information provided by the issuer/borrower 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. 1409.71 1323.95
PAT Rs. Cr. 60.45 37.53
PAT Margin (%) 4.29 2.84
Total Debt/Tangible Net Worth Times 0.83 0.73
PBDIT/Interest Times 3.84 3.18
Status of non-cooperation with previous CRA
­Not Applicable
 
Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)
Not applicable
Any other information
­None
 
Applicable Criteria
• 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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
01 Jul 2024 Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Reaffirmed)
Working Capital Term Loan Long Term 8.80 ACUITE A- | Stable (Reaffirmed)
Term Loan Long Term 50.00 ACUITE A- | Stable (Reaffirmed)
Term Loan Long Term 55.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 9.00 ACUITE A- | Stable (Reaffirmed)
Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed)
Letter of Credit Short Term 5.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 20.00 ACUITE A2+ (Reaffirmed)
Proposed Letter of Credit Short Term 20.00 ACUITE A2+ (Reaffirmed)
02 May 2023 Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Reaffirmed)
Working Capital Term Loan Long Term 8.80 ACUITE A- | Stable (Reaffirmed)
Term Loan Long Term 50.00 ACUITE A- | Stable (Assigned)
Term Loan Long Term 55.00 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 9.00 ACUITE A- | Stable (Assigned)
Term Loan Long Term 15.00 ACUITE A- | Stable (Assigned)
Letter of Credit Short Term 5.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 20.00 ACUITE A2+ (Assigned)
Proposed Letter of Credit Short Term 20.00 ACUITE A2+ (Assigned)
07 Apr 2023 Working Capital Term Loan Long Term 8.80 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed)
Letter of Credit Short Term 5.00 ACUITE A2+ (Reaffirmed)
18 Feb 2022 Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Reaffirmed)
Working Capital Term Loan Long Term 8.80 ACUITE A- | Stable (Assigned)
Letter of Credit Short Term 5.00 ACUITE A2+ (Reaffirmed)
21 Jan 2022 Cash Credit Long Term 20.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 30.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Letter of Credit Short Term 5.00 ACUITE A2+ (Upgraded from ACUITE A2)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A2+ )
Yes Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A2+ )
Not Applicable Not avl. / Not appl. Proposed Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple Not Applicable|Withdrawn
Yes Bank Ltd Not avl. / Not appl. Term Loan 30 Oct 2022 Not avl. / Not appl. 30 Mar 2030 15.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
HDFC Bank Ltd Not avl. / Not appl. Term Loan 30 Apr 2022 Not avl. / Not appl. 30 Mar 2030 50.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
Union Bank of India Not avl. / Not appl. Term Loan 30 Aug 2022 Not avl. / Not appl. 30 Dec 2029 55.00 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
HDFC Bank Ltd Not avl. / Not appl. Working Capital Term Loan 30 Apr 2022 Not avl. / Not appl. 30 Mar 2027 8.80 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE A- )
* The issuer did not co-operate; based on best available information.
­
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr.No. Company Name
1 Maruti Ferrous Private Limited
2 Karnikripa Power Private Limited
3 Ghankun Steels Private Limited
4 Sunil Ispat and Power Limited
5 Nutan Ispat and Power Private Limited
6 Hanuman Ispat Private Limited 
7 HSR Re-Rollers Private Limited
­
 

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