Brickwork Ratings downgrades the long-term rating and continues the ratings under ISSUER NOT COOPERATING* category for the Bank Loan Facilities of Rs. 50.00 Crs. of Smt Shakuntla Educational & Welfare Society based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (03 Jan 2024) |
Present | ||
Fund Based | 50.00 | 50.00 | Long Term |
BWR B- /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Grand Total | 50.00 | 50.00 | (Rupees Fifty Crores Only) |
Brickwork Ratings (BWR) has downgraded the long-term rating for the bank loan facilities, amounting to Rs,50 crores of Smt. Shakuntala Educational & Welfare Society to BWR B-/Stable and continues to classify the rating under the ISSUER NOT COOPERATING category on January 3, 2024, based on the best available information. The ratings were due for review, and Brickwork Ratings (BWR) made consistent efforts to contact the entity through emails and telephone calls to obtain the necessary information for the review. Despite BWR's repeated attempts to secure at least the minimum required information, the entity has failed to provide the requisite details. Furthermore, the entity has not been submitting the mandatory monthly "No Default Statement" (NDS) as required by regulatory guidelines. Due to the lack of cooperation from the management, BWR is unable to assess the entity’s financial performance, its ability to service debt, or to maintain a valid rating. Therefore, based on the best available information, the continued lack of management cooperation, and the non-submission of NDS, and in compliance with regulatory requirements, BWR downgrades the long-term rating to BWR C and continues the ratings under the ISSUER NOT COOPERATING category.
Lenders and investors are advised to exercise due caution when using the rating that mentions "Issuer Not Cooperating*" as the rating lacks any projections or forward-looking components, having been arrived at based on the best available information without any interaction with the management or bankers. Such non-cooperation by a rated entity may indicate a deterioration in its credit risk profile.
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 the 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.
Macro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Consumer Services | Other Consumer Services | Education |
Smt Shakuntla Education and Welfare Society (SSEWS) was established in the year 1998 and registered under the Societies Registration Act XXI of 1860. The society runs institutions with the name of “Galgotias” in Noida, UP Region. The Society operates three major institutions viz. Galgotias University (GU), Galgotias Institute of Management & Technology (GIMT), and Galgotias College of Engineering & Technology (GCET). GU was established under the Galgotias University Act by the U.P. state government in 2011. GU’s student strength stood with 3,14,213 students for the academic year 2019-20. It has a campus of 52 acres located at Yamuna Express Highway, Greater Noida, and offers various courses related to undergraduate programs, postgraduate programs, diploma courses, integrated programs, and doctoral programs GIMT came into existence in 1999 and offers post-graduation courses viz. Master of Business Administration (MBA) and Master of Computer Application (MCA) courses. Both courses are imparted by Uttar Pradesh Technical University. Student Strength stood at 243 for the 2019-20 batch. GCET came into existence in 2000 as per approval by AICTE vide letter dated 17 July 2000 and presently offers both graduate and postgraduate courses with degrees awarded by the Uttar Pradesh Technical University. Student strength stood at 4506 for the 2019-20 batch.
Note: As per information available with BWR as of 06-Oct-2021.
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
Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
---|---|---|
CARE | CARE Ratings has placed the ratings under the non-cooperation category due to the non-submission of relevant information required for the review of the bank loan facilities of Smt. Shakuntala Educational and Welfare Society. | 28Dec2023 |
Not Applicable.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2025) | 2024 | 2023 | 2022 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 50.00 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
03Jan2024 |
BWR B- Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
11Nov2022 |
BWR BStable
(ISSUER NOT COOPERATING* /Downgrade) |
Grand Total | 50.00 | (Rupees Fifty Crores Only) |
Analytical Contacts | |
---|---|
Likith M S Rating Analyst likith.ms@brickworkratings.com |
Suryanarayan N Associate Director - Ratings suryanarayan.n@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.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Punjab & Sind Bank | OverdraftSanctioned | 25.00 | _ | 25.00 | Simple## |
2 | Punjab National Bank | OverdraftSanctioned | 25.00 | _ | 25.00 | Simple## |
Total | 50.00 | 0.00 | 50.00 | |||
TOTAL (Rupees Fifty 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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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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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