Press Release May 23, 2024 MANGALA MARINE EXIM INDIA PRIVATE LIMITED Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.50	ACUITE BB | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	112.50	-	ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding	133.00	-	-

Rating Rationale

­Acuite has downgraded its long term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) and reaffirmed the short term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs.133.00 Cr. bank facilities of Mangala Marine Exim India Private Limited (MMEIP). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Company

­Kochi based, MMEIPL was incorporated in 2002 by Mr. Premchand Bhat, Mr. Sreenivasa Bhat, Mr. Ashok Bhat and Mr. Suresh Bhat. The company is a part of the Mangala Group which is engaged in the seafood industry since a significant amount of time. The firm is engaged in the processing and export of sea food products i.e. shrimps, cuttle fish, squid, octopus, to name a few to US, Canada, Europe, Japan and China. The firm procures the catch from from the southern coastal districts of Kerala, Andhra Pradesh and Tamil Nadu. The company has 3 processing units with 1 tunnel freezer, 1 horizontal block processor. MMEIPL also has its own warehouse with a capacity to hold 3000 Metric Tons.

About the Group

­Mangala Group, promoted by Mr. Premchand Bhat, Mr. Sreenivasa Bhat, Mr. Ashok Bhat and Mr. Suresh Bhat. The group comprises of Mangala Sea Foods, engaged in processing and exporting of shrimps and cuttle fish, Mangala Marine Exim India Private Limited, engaged in the processing and export of sea food products i.e. shrimps, cuttle fish, squid, octopus, to name a few.

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:

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	350.54	337.41
PAT	Rs. Cr.	2.92	1.09
PAT Margin	(%)	0.83	0.32
Total Debt/Tangible Net Worth	Times	1.86	1.89
PBDIT/Interest	Times	1.69	1.68

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • 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

Note on Complexity Levels of the Rated Instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 23 Feb 2023 Bank Guarantee/Letter of Guarantee Short Term 2.50 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Bills Discounting Short Term 20.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Bills Discounting Short Term 22.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Covid Emergency Line. Long Term 5.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Covid Emergency Line. Long Term 1.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Funded Interest Term Loan Long Term 1.15 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Letter of Credit Short Term 20.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Letter of Credit Short Term 12.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) PC/PCFC Short Term 8.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) PC/PCFC Short Term 28.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Proposed Long Term Bank Facility Long Term 5.35 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 8.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) 01 Dec 2021 Bank Guarantee/Letter of Guarantee Short Term 2.50 ACUITE A3+ (Upgraded from ACUITE A3) Bills Discounting Short Term 20.00 ACUITE A3+ (Upgraded from ACUITE A3) Bills Discounting Short Term 22.00 ACUITE A3+ (Upgraded from ACUITE A3) Covid Emergency Line. Long Term 1.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Covid Emergency Line. Long Term 5.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Funded Interest Term Loan Long Term 1.15 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Letter of Credit Short Term 20.00 ACUITE A3+ (Upgraded from ACUITE A3) Letter of Credit Short Term 12.00 ACUITE A3+ (Upgraded from ACUITE A3) PC/PCFC Short Term 8.00 ACUITE A3+ (Upgraded from ACUITE A3) PC/PCFC Short Term 28.00 ACUITE A3+ (Upgraded from ACUITE A3) Proposed Long Term Bank Facility Long Term 5.35 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 8.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* South Indian Bank Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* State Bank of India Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* State Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Funded Interest Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.15 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* South Indian Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* South Indian Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* State Bank of India Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 28.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.35 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Abhishek Singh Analyst - Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

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Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.