RATING RATIONALE
09Feb2024

Knowledge Institute of Technology Trust

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 17.06 Crs. of Knowledge Institute of Technology Trust based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(09 Nov 2022)
Present
Fund Based 17.06 17.06 Long Term BWR B /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 17.06 17.06 (Rupees Seventeen Crores and Six 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

The rating was due for review in November 2022. Brickwork ratings(BWR) took up with the entity to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings 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 and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer's financial performance and its ability to service its debt and maintain valid ratings. The entity has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation , Brickwork Ratings has downgraded the long-term rating to ‘BWR B-/Stable’ and continued the ratings in the Issuer Not Cooperating* category.

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 the 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 the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of the information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Consumer Services Other Consumer Services Education

Knowledge Institute of Technology Trust was registered as an educational trust in the year 2008. The founder of the trust is Dr. P S S. Srinivasan, Ph. D. The trust established Knowledge Institute of Technology (KIOT) in the year 2008 and Knowledge Business School (KBS) in the year 2011. The colleges & trust are located in Salem, Tamil Nadu. KIOT offers Bachelor of Engineering (B.E) in five streams and Master of Engineering (M.E) in four streams where KBS offers Master of Business Administration (MBA) courses. The colleges are affiliated to Anna University, Chennai and approved by AICTE. 

KEY FINANCIAL INDICATORS

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No outstanding rating from other CRA's.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 17.06
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
09Nov2022
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
08Oct2021
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 17.06 (Rupees Seventeen Crores and Six 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

Chandra shaker

Rating Analyst chandra.s@brickworkratings.com

Nagaraj K

Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Knowledge Institute of Technology Trust
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 Union Bank of India Term LoanOut-standing 12.47 _ 12.47
2 Union Bank of India Over DraftSanctioned 1.60 _ 1.60
3 Union Bank of India vehicle loan Sanctioned 2.99 _ 2.99
Total 17.06 0.00 17.06
TOTAL (Rupees Seventeen Crores and Six lakhs Only)
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About Brickwork Ratings

Brickwork 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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