RATING RATIONALE
04Jul2022

Sanskriti Society for Education Research & Development

Brickwork Ratings downgrades the long term rating for the Bank Loan Facilities of Rs. 48.63 Crs. of Sanskriti Society for Education Research & Development based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(09 Apr 2021)
Present
Fund Based 43.63 43.63 Long Term BWR BBB /Stable
Reaffirmation
BWR BB + /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 5.00 5.00 Long Term BWR BBB /Stable
Reaffirmation
BWR BB + /Stable
Downgrade/ISSUER NOT COOPERATING*
Grand Total 48.63 48.63 (Rupees Forty Eight Crores and Sixty Three lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings has downgraded the long term rating to "BWR BB+ /Stable; Issuer Not Cooperating" for the bank loan facilities amounting Rs. 48.63 Crores of Sanskriti Society for Education Research & Development. Even though the mandate is received from the client however critical information like ABS/PBS as at 31.03.22, NDS after Feb'22 and Banker's Feedback is yet to be received.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived based on the best available information without any management/banker's interaction.

The rating was due for a review in April, 2022. BWR took up with the firm to provide required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the firm’s financial performance and its ability to service its debt and maintain a valid rating.

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 rating should therefore take into account 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.

ABOUT THE ENTITY

Sanskriti Society for Education Research and Development was established in 2006 having registered office at Naraina Industrial Area, Phase II, New Delhi. It is registered under the Society Registration Act, 1860 as ‘’Society for Education Research & Development’’ on 6 th September 2006. Subsequently Sanskriti was added to its name in Sept., 2009. The Society is managed primarily by Ram Kailash Gupta and Sachin Gupta along with other members. Sanskriti Institute has converted into a Private University after the approval from State Govt. of UP in September, 2016 vide Letter No. – 961/70-1-2016-20(2)/2014 dated 23rd September, 2016. Mr Sachin Gupta and Mr Prabhakar Tripathi are presently the Chancellor and Registrar of University respectively. The University is set up as a private university in Chhata, Mathura, Uttar Pradesh spread over 40+ acres of land on NH2, 57 kms from Delhi NCR. The University has been notified under U.P. State Act. The University has around 404 teachers out of which 87 teachers are PHD. Number of students enrolled in AY20 increased to 6203 from 5402 in AY19. As per the information furnished by the management, the number of students enrolled has further increased to 6760 in AY21. University has also recently added 2 additional courses i.e. Law and Nursing in the current academic year

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 55.29 51.45
EBITDA Rs.Crs. 17.07 14.57
PAT Rs.Crs. 5.02 3.37
Corpus Rs.Crs. 114.44 106.99
Total Debt/Corpus Times 0.50 0.49
Current Ratio Times 1.29 1.11
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 43.63
BWR BB+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
20Jan2021
BWR BBB Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
21Oct2019
BWR BBB Stable
(Reaffirmation)
0.00
NA
NA
NA
09Apr2021
BWR BBB Stable
(Reaffirmation)
NA
NA
NA
NA
Fund Based ST 0.00
NA
NA
NA
20Jan2021
BWR BBB Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
21Oct2019
BWR BBB Stable
(Reaffirmation)
Non Fund Based LT 5.00
BWR BB+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
09Apr2021
BWR BBB Stable
(Reaffirmation)
NA
NA
NA
NA
Grand Total 48.63 (Rupees Forty Eight Crores and Sixty Three lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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
Analytical Contacts

Shiv Preet Singh

Ratings Analyst shivpreet.s@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sanskriti Society for Education Research & Development
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Punjab National Bank Term LoanSanctioned 21.37 _ 21.37
2 Punjab National Bank Over DraftSanctioned 14.68 _ 14.68
3 Punjab National Bank Bank GuaranteeSanctioned 5.00 _ 5.00
4 Punjab National Bank GECLSanctioned 7.00 _ 7.00
5 Punjab National Bank Covid Term LoanSanctioned 0.58 _ 0.58
Total 48.63 0.00 48.63
TOTAL (Rupees Forty Eight Crores and Sixty Three lakhs Only)
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