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
Acuite has reaffirmed and withdrawn the short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) on Rs 20.35 Cr. bank facilities of Digha Sea Food Exports Private Limited. The rating is being withdrawn on account of request received from the issuer and No Objection Certificate received from the banker.
The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument
Rationale for Rating
The rating reaffirmation reflects the company’s experienced management team and its long-standing relationships with key clients in Southeast Asia and Europe, which continue to support business stability. Although revenue moderated in FY2025 due to reduced procurement—stemming from lower catchment and adverse sea conditions—the company was able to maintain positive margins and stable accruals.In FY2026, the company reported revenue of Rs 65 Cr, with margins broadly in line with the improved levels witnessed in FY2025. The Company’s financial risk profile remains comfortable, supported by a healthy capital structure and debt protection metrices. Albeit a small net worth, the Company also has an efficient working capital cycle marked by GCA of 71 days. With healthy YTD numbers and seasonal sales momentum, Acuité expects the Company’s performance to improve over the medium term. The rating is constrained by the highly fragmented and competitive nature of the business along with seasonal risks associated with procurement.
About the Company
Incorporated in 2008, Digha Sea Food Exports Private Limited (DSEPL) is a Kolkata-based company that operates closely. It is overseen by its promoter directors, Mr. Pranab Kumar Kar and Mr. Prabhat Kumar, and specializes in processing and exporting a variety of shrimp products. Their product range encompasses Block Frozen Shrimps, IQF Raw Shrimps, Blanched IQF Shrimps, and more. Seventy Five percent of the company’s revenue is generated from IQF shrimp sales, with the remaining portion stemming from block shrimp sales. These products are exclusively exported to Japan, China, Vietnam, Europe, and the Middle East. Various brand names, including ‘Jinkin,’ ‘Digha Gold,’ ‘Digha Fresh,’ and ‘Digha,’ are used by the company to market its products.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profiles of DSEPL to arrive at this rating.
Key Rating Drivers
Strengths
Experienced management and established track record of operations
Experienced management and established track record of operations DSEPL was originally established in July 1999 as a partnership company, and it later transitioned into a private limited company in 2008. The company is actively involved in processing and exporting various seafood products, boasting a solid track record spanning over two decades. Its promoters, Mr. Pranab Kumar Kar and Mr. Prabhat Kumar, bring over two decades of invaluable industry experience to the table.
Healthy financial risk profile
The financial risk profile of the company is marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company stood at Rs. 18.51 Cr. as on FY2025 as compared to Rs. 17.41 Cr. as on FY2024. For FY2025, the gearing of the company stood below unity at 0.17 times from 0.34 times in FY2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) also increased to 0.55 times in FY2025 from 0.97 times in FY2024. The Interest Coverage Ratio (ICR) Increased to 6.25 times in FY2025 from 4.24 times in FY2024. Similarly, the Debt Service Coverage Ratio (DSCR) increased to 5.45 times in FY2025 from 3.98 times in FY2024.
Efficient Working Capital Management
DSEPL’s operations exhibit efficient working capital cycle, as indicated by its gross current asset (GCA) days of 71 days in FY2025 compared to 82 days in FY2024. Moreover, the debtor period of the company also stood at 20 days in FY2025 as compared to 49 days in the FY2024. Further, the inventory days of the company stood at 39 days in FY2025 as compared to 12 days in the FY2024.
Weaknesses
Modest scale of operations albeit comfortable liquidity
DSEPL’s turnover declined to Rs.55.79 crore in FY2025 from Rs.66.07 crore in FY2024. The dip in revenue was primarily due to the company’s inability to procure adequate raw materials during FY2025, coupled with its restricted capacity to meet customer demand following a change in the European customer’s procurement strategy. In FY2026 DSEPL reported the revenue of Rs 65 Cr. The profitability of the company witnessed improvement as operating profit margin rose to 4.89 percent in FY2025 as against 0.17 percent in FY2024. This increase in margin was on account on acquiring raw material at low cost.
Navigating Regulatory Shifts and Competitive Landscape
The shrimp processing and export industry is characterized by fragmentation, with numerous small players, and a heavy reliance on shrimp farms for raw materials, which constrains bargaining power. Furthermore, the procurement price of shrimp is subject to fluctuations based on catch and availability during specific periods, resulting in the company’s exposure to price volatility. Additionally, since the entirety of the company’s revenue comes from exports, its credit risk profile is sensitive to fluctuations in forex rates. Moreover, the company faces risks related to changes in regulations and demand trends in client countries, including the possibility of antidumping duties being imposed by importing nation.
Rating Sensitivities
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
Adequate
The company has adequate liquidity marked by low but steady net cash accruals of Rs. 2.38 Cr. in FY2025 as against nil long term debt obligations over the same period. The current ratio of the company stood comfortable at 1.11 times in FY2025. Additionally, the Company maintains an unencumbered cash and bank balance of Rs.0.10 crore and has utilized approximately 59% of its sanctioned bank limits over the last six months ending March 2026, reflecting prudent working capital management.
Outlook : Not applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
55.79
66.07
PAT
Rs. Cr.
1.21
0.48
PAT Margin
(%)
2.17
0.73
Total Debt/Tangible Net Worth
Times
0.17
0.34
PBDIT/Interest
Times
6.25
4.24
Status of non-cooperation with previous CRA (if applicable)
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.
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List of instruments and names of regulators of the instruments
