RATING RATIONALE
21Dec2022

Mangalam Global Enterprise Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 145.73 Crs. of Mangalam Global Enterprise Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(21 Sep 2021)
Present
Fund Based 105.73 105.73 Long Term BWR BBB- /Stable
Reaffirmation
BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
35.00 35.00 Short Term BWR A3
Reaffirmation
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 5.00 5.00 Short Term BWR A3
Reaffirmation
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Grand Total 145.73 145.73 (Rupees One Hundred Forty Five Crores and Seventy Three lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The rating is due for review in  September-2022. The financial information is available with BWR, as the company is listed on BSE. However, other business related information is not available due to management non cooperation. BWR took up with the issuer to provide required information in timely manner over the emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same.  On account of non availability of adequate information, BWR is unable to assess the Company’s overall performance and its ability to service its debt and maintain a valid rating.  Hence on account of inadequate information and lack of management cooperation, Brickworks Ratings downgraded  the long term bank loan and the short term rating,  to BWR BB/(Stable) A4,  and migrating to 'Issuer Not Cooperating' category. 

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.

LIMITATIONS OF THE RATING

 

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Incorporated in 2010, Mangalam Global Enterprise Limited is set up by Ahmedabad-based Mangalam group. The Promoter of the Company are: Vipin Prakash Mangal, Chanakya Prakash Mangal and Chandragupt Prakash Mangal. The company is mainly engaged in the business of manufacturing and trading of Castor Oil (F.S.G.), Castor De-Oiled Cake and High Protein Castor De-Oiled Cake for domestic and international markets. The company also engaged in the manufacturing and trading of cotton bales and cotton seeds. The company has also started manufacturing and trading of Mustard seed, Mustard oil, Mustard cake, Soya seed, Soya refined oil, Soya cake, Wheat and Rice and other agricultural products from FY21.

(Information available as of September 2021)

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 105.73
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
21Sep2021
BWR BBB- Stable
(Reaffirmation)
06Aug2020
BWR BBB-Stable
(Assignment)
NA
NA
Fund Based ST 35.00
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
21Sep2021
BWR A3
(Reaffirmation)
06Aug2020
BWR A3
(Assignment)
NA
NA
Non Fund Based ST 5.00
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
21Sep2021
BWR A3
(Reaffirmation)
06Aug2020
BWR A3
(Assignment)
NA
NA
Grand Total 145.73 (Rupees One Hundred Forty Five Crores and Seventy Three lakhs Only)
Rating Advisory, as on 28Sep2022
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Kunjal Dabhi

Rating Analyst Board : +91 79 66174046 / 47 kunjal.r@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Mangalam Global Enterprise Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 HDFC Bank Bill Discounted (BD)Sanctioned _ 30.00 30.00
2 HDFC Bank Credit Exposure Limit (CEL)Sanctioned _ 5.00 5.00
3 HDFC Bank Short term loan-Pledge FundingSanctioned _ 5.00 5.00
4 HDFC Bank GECLSanctioned 2.34 _ 2.34
5 HDFC Bank EPC/ PCFC/ FBP/ PSFCSanctioned 35.00 _ 35.00
6 Punjab National Bank GECLSanctioned 1.44 _ 1.44
7 Punjab National Bank Covid -19 Emergency Line CreditSanctioned 1.95 _ 1.95
8 Punjab National Bank Cash CreditSanctioned 25.00 _ 25.00
9 Un tied portion Cash CreditProposed 40.00 _ 40.00
Total 105.73 40.00 145.73
TOTAL (Rupees One Hundred Forty Five Crores and Seventy Three lakhs Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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