Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Mangalam Ventures’ long term bank facilities worth Rs 9.50 crore which was reduced from Rs 11.23 crore and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 2 crore which was enhanced from Rs 1 crore.
The company has received the said ratings on the back of its relatively modest scale of operations, low profitability margins, customer concentration in the revenue profile, susceptibility of profit margins to the volatility in the forgein exchange and presence in the highly competitive and fragmented industry.
Mangalam is primarily engaged in the manufacturing and exporting of readymade garments to Canada, USA and Europe from the past 16 years. Mangalam has a manufacturing facility at Faridabad with an installed capacity of around 16.5 lakh pieces per annum for readymade garments.
