Press Release April 05, 2024 RAMAN EDUCATION SOCIETY Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	43.60	ACUITE BB | Downgraded | Issuer not co-operating*	-
Total Outstanding	43.60	-	-

Rating Rationale

­­­Acuité has downgraded the long-term rating to 'ACUITE BB' (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.43.60 Cr. long term bank facilities of Raman Education Society (RES). The rating is now  be flagged as “Issuer NotCooperating” and is based on the best available information. The rating has been downgraded on account of information risk.

About the Company

­­Raman Education Society (RES) was established with the CV Raman College of Engineering (CRCE) in Bhubaneshwar on August 9, 1989, in accordance with the Society Registration Act of 1860. The institute offers 17 UG programs in engineering, and many post-graduate (PG) programs in engineering, management, science, literature as well as Ph.D. courses. It has created many centers of excellence for facilitating specialised training and research in various subjects, in collaboration with renowned industry partners. At present, C.V. Raman Global University, Odisha established as per “Odisha Act 01 of 2020” C.V. Raman Global University operates under RES. The Society is managed by Mr. Sarat Chandra Bhadra, Mr. Sanjib kumar Rout, Mrs. Shailja Rout and Mr.Rabi Narayan Barik

Unsupported Rating

­Not Applicable

Non-cooperation by the issuer/borrower

Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also 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 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 Sensitivities

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

Liquidity Position

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

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	55.97	44.96
PAT	Rs. Cr.	6.84	1.93
PAT Margin	(%)	12.21	4.30
Total Debt/Tangible Net Worth	Times	0.74	0.82
PBDIT/Interest	Times	3.65	3.16

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 27 Apr 2023 Term Loan Long Term 26.21 ACUITE BB+ | Stable (Assigned) Term Loan Long Term 2.89 ACUITE BB+ | Stable (Assigned) Secured Overdraft Long Term 11.90 ACUITE BB+ | Stable (Assigned) Secured Overdraft Long Term 2.60 ACUITE BB+ | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Karnataka Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.90 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Karnataka Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.60 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Karnataka Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 26.21 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Central Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.89 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Abhishek Singh Analyst - Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.