RATING RATIONALE

30Oct2024

Mangalam Global Enterprise Ltd.

Brickwork Ratings reaffirms the long team and short term ratings for the bank loan facilities of Rs. 197.98 Crores. of Mangalam Global Enterprise Ltd., continues the ratings in the ISSUER NOT COOPERATING* Category and simultaneously withdraws the ratings.

Particulars

Facilities/Instruments**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities/Instruments**	Previous	Present	Tenure	Previous (27 Sep 2024)	Present
Fund Based	190.98	190.98	Long Term	BWR BB /Stable ISSUER NOT COOPERATING* /Downgrade	BWR BB /Stable Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
Fund Based	5.00	5.00	Short Term	BWR A4 ISSUER NOT COOPERATING* /Downgrade	BWR A4 Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
Non Fund Based	2.00	2.00	Short Term	BWR A4 ISSUER NOT COOPERATING* /Downgrade	BWR A4 Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
Grand Total	197.98	197.98	(Rupees One Hundred Ninety Seven Crores and Ninety Eight lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Complete details of Bank facilities / NCDs is provided in Annexure-I
*Issuer did not cooperate; based on best available information.
RATING ACTION / OUTLOOK / WITHDRAWAL

Brickwork Rating (BWR) reaffirms the long-term at BWR BB/Stable, the short-term rating at BWR A4, and continues the ratings in the ISSUER NOT COOPERATING* Category, and simultaneously withdraws the same as per the withdrawal request from the company, No Objection Certificate from its lenders and considering the quarterly financial updates of Q2 FY25/ H1 FY25 of company published in NSE dated October 21,2024.

Upon follow-up with the company for documents required for review, the company has not provided any information on their operational and financial performance. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance or its ability to service its debt and hence reaffirms the ratings at BWR BB/Stable/A4 and continues the ratings in the ISSUER NOT COOPERATING* Category. Further, the company has not been sending NDS for more than 3 months. Despite follow-up emails to lenders for feedback, BWR has not received any response.

Withdrawal is in conformity with the BWR withdrawal policy and relevant documents are held on record.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lacks 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, non-cooperation by the rated entities to provide 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.

KEY RATING DRIVERS

Credit Strengths:

Locational Advantages: :
Gujarat accounts for approximately 75% of the total castor seed production in India. With Gujarat being the main centre for castor seed crop, the company enjoys the advantage of proximity to its main raw material source.
Experienced and competent management : :
The company is promoted by Ahmedabad based Mangalam Group. The Promoter of the Company are: Vipin Prakash Mangal, Chanakya Prakash Mangal and Chandragupt Prakash Mangal. Mr. Vipin Prakash Mangal has more than 3 decades of experience in trading business. Mr. Chankya Prakash Mangal and Mr. Chandragupt Prakash Mangal decided to join the family business as a fourth generation. Apart from this, the company has a management team of qualified and experienced professionals adding value to the organization through their expertise.
Diversified Revenue profile : :
The company is mainly into Manufacturing and Trading of Agricultural Products such as Castor Oil, Castor Seed, Castor Oil cake, High Protein Oil Cake, Cotton Bales, Cotton Seeds etc. 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 agri products from FY21. Apart from this the company generates revenue as service provider for liaising and clearing service and from lease rentals.
Revenue growth : :
The Company has registered rapid growth in turnover in last 4 years. The Company has achieved revenue of Rs. 1669.17 Crs with Net profit of Rs.18.91 Crs in FY24. In H1FY25, the company has achieved a topline of Rs. 1145.94 Crores.

Credit Risks:

Profitability vulnerable to volatile raw material prices and agro-climatic risk : :
Seasonal volatility and fluctuations in raw material prices may impact the revenue and thereby affect the margins. Agro-climatic risks related to castor seed production can impact the production and pricing of castor oil, which is its main raw material. Moreover, MGEL is exposed to unexpected foreign exchange price movements, as the export realisations are generally in USD terms. However, it tries to cover a bulk of the forex exposure through forward contracts.

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA - Standalone

For arriving at its ratings, BWR has considered the standalone financials of the company and applied its rating methodology as detailed in the Rating Criteria Links.

RATING SENSITIVITIES

Not Applicable.

LIQUIDITY INDICATORS - Adequate

The company's net cash accruals improved significantly from Rs. 16.95 Crs in FY23 to Rs. 22.67 Crores in FY24 against the CPLTD of Rs. 1-4 Crores. The conversion cycle has been stagnant for around 48-50 days in the past two years. In H1FY25, the company reported a healthy operating income and profits which will be adequate to cover the current portion of long team debt and manage the working capital cycle efficiently.

COMPANY's / FIRM's PROFILE

Macro Economic Indicator	Sector	Industry	Basic Industry
Fast Moving Consumer Goods	Fast Moving Consumer Goods	Agricultural Food & other Products	Other Agricultural Products

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.

(Information available as of July 2023)

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	FY 21 - 22 (Audited)	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)
Operating Revenue	1188.76	1225.95	1669.17
EBITDA	9.42	25.46	35.69
PAT	3.91	11.90	18.91
Tangible Net Worth	78.70	94.17	133.78
Total Debt / Tangible Net Worth	1.44	2.18	1.20
Current Ratio	1.35	1.19	1.51

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Not Applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)

Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.)	Current Rating (2024)			2024 (History)		2023		2022		2021
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	190.98	BWR BB/Stable (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	27Sep2024	BWR BB Stable (ISSUER NOT COOPERATING* /Downgrade)	03Jul2023	BWR BBB- Stable (Upgrade and Removed from the INC category)	21Dec2022	BWR BB Stable (ISSUER NOT COOPERATING*/Downgraded)	21Sep2021	BWR BBB- Stable (Reaffirmation)
Fund Based	ST	5.00	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	27Sep2024	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)	03Jul2023	BWR A3 (Upgrade and Removed from the INC category)	21Dec2022	BWR A4 (ISSUER NOT COOPERATING*/Downgraded)	21Sep2021	BWR A3 (Reaffirmation)
Non Fund Based	ST	2.00	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	27Sep2024	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)	03Jul2023	BWR A3 (Upgrade and Removed from the INC category)	21Dec2022	BWR A4 (ISSUER NOT COOPERATING*/Downgraded)	21Sep2021	BWR A3 (Reaffirmation)
Grand Total		197.98	(Rupees One Hundred Ninety Seven Crores and Ninety Eight lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Rahul Shaw Ratings Analyst rahul.shaw@brickworkratings.com	Suryanarayan N Associate Director - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com

Mangalam Global Enterprise Ltd.

ANNEXURE-I

Details of Bank Loan 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.)	Complexity of the Instrument
1	Canara Bank	Cash Credit - Sanctioned	45.00	_	45.00	Simple##
2	HDFC Bank	Short term loan-Pledge Funding - Sanctioned	_	5.00	5.00	Simple##
3	HDFC Bank	GECL - Sanctioned	2.34	_	2.34	Simple##
4	HDFC Bank	EPC/ PCFC/ FBP/ PSFC - Sanctioned	35.00	_	35.00	Simple##
5	HDFC Bank	GECL 2.0 - Sanctioned	9.57	_	9.57	Simple##
6	Punjab National Bank	GECL 1.0 - Sanctioned	5.57	_	5.57	Simple##
7	Punjab National Bank	GECL - Sanctioned	1.00	_	1.00	Simple##
8	Punjab National Bank	Cash Credit - Sanctioned	40.00	_	40.00	Simple##
9	State Bank Of India (SBI)	Cash Credit - Sanctioned	50.00	_	50.00	Simple##
10	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	2.00	2.00	Simple##
11	State Bank Of India (SBI)	Term Loan - Sanctioned	2.50	_	2.50	Simple##
Total			190.98	7.00	197.98
TOTAL (Rupees One Hundred Ninety Seven Crores and Ninety Eight lakhs Only)

## 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.

ANNEXURE-II

INSTRUMENT(NCD/Bonds/CP/FDs) DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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