RATING RATIONALE
19Sep2023
Zee Learn Ltd.
Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.58.00 Crs. of Zee Learn Ltd. based on best available information, as the issuer did not cooperate.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (05 Sep 2022) |
Present | ||
| Fund Based | 58.00 | 58.00 | Long Term |
BWR D
Downgrade |
BWR D
ISSUER NOT COOPERATING* /Reaffirmation |
| Grand Total | 58.00 | 58.00 | (Rupees Fifty Eight Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.
*** BWR is showing the amount of the term loan as per the previous rating rationale as the company has not submitted the latest sanction letter and bank account statements. Hence BWR is not aware of the latest outstanding amount of the term loans.
RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION
Brickwork Ratings has reaffirmed the rating of ‘BWR D’ and placed it under the ISSUER NOT COOPERATING* category, based on the best available information as the Issuer did not cooperate
The ratings were due for review in May 2023. BWR took up with the company over emails and through telephone calls to obtain the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. The company has also been irregular with respect to the submission of the monthly No Default Statement. In the absence of sufficient information from the company and the lender, BWR is unable to assess the company's financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has reaffirmed the rating of ‘BWR D’ and placed it under the ISSUER NOT COOPERATING* category.
LIMITATIONS OF THE RATING
The lenders/investors may note to exercise due caution while using the above ratings which mentions “Issuer Not Cooperating” since the ratings lack any projections or a forward looking component as it is arrived at based on the best available information on the company without any management interaction. Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Consumer Discretionary | Consumer Services | Other Consumer Services | Education |
Zee Learn Limited (ZLL) is a part of Essel Group and was incorporated in 2010. It is a child development and education company that operates K-12 school sunder the brand name of Mount Litera Zee Schools, pre schools under Kidzee and vocational academies ZICA and ZIMA. ZLL also acts as a consultant to local entrepreneurs who wish to set-up K-12 schools and the Kidzee pre-school and provide send-to-end education management and advisory services. ZLL runs programs in the following: early childhood education, school education, activity-based learning centers and vocational training in media and design, all through partnerships/franchising and running its own institutes. The group follows a structure of Company- Owned and Company Operated (COCO), as well as franchisee models. It has 49 pre school centers under the COCO model (32 Kidzee,11 Mount Litera World Pre schools and 6 Mount Litera Zee schools Junior). The company also has 6K-12 COCO schools (5 Mount Litera Zee School and 1 Mount Litera Schools International), which operate under various trusts or societies.
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
No outstanding rating with other CRAs
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 58.00 |
BWR D
(ISSUER NOT COOPERATING* /Reaffirmation) |
05Sep2022 |
BWR D
(Downgrade) |
25Aug2021 |
BWR D
(Downgrade) |
02Apr2020 |
BWR A Credit Watch with Negative Implications
(Change in outlook) |
| 0.00 |
NA
|
NA |
NA
|
NA |
NA
|
14Jul2020 |
BWR BBB Credit Watch with Negative Implications
(Downgrade) |
||
| 0.00 |
NA
|
NA |
NA
|
NA |
NA
|
03Nov2020 |
BWR BB Credit Watch with Negative Implications
(Downgrade) |
||
| Grand Total | 58.00 | (Rupees Fifty Eight Crores 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.
Hyperlink/Reference to applicable Criteria- General Criteria
- Approach to Financial Ratios
- Default Recognition and Default Curing Period
- Education Sector
- Consolidation of Companies
| Analytical Contacts | |
|---|---|
|
Vijayalakshmi R Senior Rating Analyst Board : +91 044 24663326 vijayalakshmi.r@brickworkratings.com |
RamaKrishna Director - Ratings ramakrishna@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
|---|---|---|---|---|---|
| 1 | DCB Bank | Term LoanSanctioned | 14.00 | _ | 14.00 |
| 2 | DCB Bank | Over DraftSanctioned | 19.00 | _ | 19.00 |
| 3 | Yes Bank | Over DraftSanctioned | 25.00 | _ | 25.00 |
| Total | 58.00 | 0.00 | 58.00 | ||
| TOTAL (Rupees Fifty Eight Crores Only) | |||||
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About Brickwork RatingsBrickwork 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 11,560 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.
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