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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 62.00 | ACUITE BB | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 3.00 | - | ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 65.00 | - | - |
| Rating Rationale |
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Acuité has downgraded and withdrawn the long term rating to 'ACUITE BB' (read as ACUITE Double B) from ACUITE BB+ (Read as Acuite Double B Plus) and reaffirmed and withdrawn the short term rating of "ACUITE A4+' (read as ACUITE A four plus) on the 65 cr. bank loan facilities of CHITKARA EDUCATIONAL TRUST. The team has received the withdrawal request from the client because the client does not want to continue the further rating. A No Objection Certificate (NOC) for the same has been received. The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. The rating continues to be flagged as “Issuer Not Cooperating”, and downgraded on account of information risk. |
| About the Company |
| Chitkara Educational Trust was established in 1998. The trust manages a school and colleges and offers undergraduate programs, postgraduate program and doctoral programs in fields such as Engineering, Management, Pharmacy and other courses in Health Sciences, Nursing to name a few. CET has established two universities by the name of Chitkara University, Baddi (Himachal) and Chitkara University, Patiala (Punjab). The University extends its services by providing transportation and hostel facilities to its students with total capacity of 5500 students including both Himachal and Punjab campus. Chitkara University is recognised by the University Grants Commission (UGC). The university is also accredited by the National Assessment and Accreditation Council (NAAC). Relevant programmes are approved by the Council of Architecture (COA), Pharmacy Council of India (PCI), National Council for Teacher Education (NCTE), Indian Nursing Council (INC) and National Council for Hotel Management and Catering Technology (NCHMCT) Operations of Chitkara Educational Trust are managed by Dr. Ashok Chitkara, Dr. Madhu Chitkara, Mr. Mohit Chitkara. |
| Non-cooperation by the issuer/borrower: |
| Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies. |
| Limitation regarding information availability: |
| The rating is based on information available from sources other than the issuer/borrower (in Press Release CHITKARA EDUCATIONAL TRUST Rating Reaffirmed, Downgraded, & Withdrawn, and Issuer not co-operating the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratings based. |
| About the Rated Entity - Key Financials |
| The rated entity has not shared the latest financial statements despite repeated requests |
| Rating Sensitivity |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon. |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on Complexity Levels of the Rated Instrument |
| In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in |
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