Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 21.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Total Outstanding 21.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) on the Rs.21.00 crore bank facilities of Gateway Education and Charitable Society (GECS). The rating continues to be flagged as “Issuer Not-Cooperating” and based on the best available information.


About the Company

­­Gateway Education & Charitable Society, established in 2005, is headed by Mr. Rakesh Aggarwal (President), Mr. H. P. Mangla (Executive President), Ms. Anju Aggarwal (Vice President 1) and others. GECS manages six education al institutes from its campus located at Sonipat (Haryana). GECS presently caters to around 4,116 students.

 
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 non-cooperation 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 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 rating is based.

 
Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants

­Not Applicable

 
Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 16 (Provisional) FY 15 (Actual)
Operating Income Rs. Cr. 24.02 20.33
PAT Rs. Cr. 1.20 (0.94)
PAT Margin (%) 5.01 (4.65)
Total Debt/Tangible Net Worth Times 1.35 1.86
PBDIT/Interest Times 4.47 2.46
Status of non-cooperation with previous CRA

­Not Applicable 

 
Any other information

­None

 
Applicable Criteria
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
21 Oct 2022 Secured Overdraft Long Term 1.00 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 20.00 ACUITE B+ ( Issuer not co-operating*)
23 Jul 2021 Secured Overdraft Long Term 1.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 20.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
30 Apr 2020 Term Loan Long Term 20.00 ACUITE BB- (Issuer not co-operating*)
Secured Overdraft Long Term 1.00 ACUITE BB- (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 20.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
­

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