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CRISIL has assigned its ‘BBB/Stable’ rating to the bank facilities of Association of Management Studies (AMS).
The rating reflects AMS’s established position in the education sector through its fourteen colleges offering more than 25 courses in diverse disciplines, and healthy finance risk profile marked by healthy cash accruals and comfortable debt protection metrics. These rating strengths are partially offset by AMS’s exposure to risks related to intense competition in the regional education sector in Uttar Pradesh, and its susceptibility to adverse regulatory changes in the sector.
Outlook: Stable
CRISIL believes that AMS will continue to benefit from the wide spectrum of courses that it offers, leading to healthy cash accruals. The outlook may be revised to ‘Positive’ if AMS increases its scale of operations, while maintaining sizeable cash surpluses, and thereby a healthy financial risk profile. Conversely, the outlook may be revised to ‘Negative’ if the society contracts a large quantum of debt, there is a significant decline in level of enrolment at its institutes, or it suffers because of adverse regulatory changes.
About the Society
AMS is a society established in December 1994 by Mr. Yogesh Mohan Gupta in Meerut (Uttar Pradesh) with an objective to provide education services. AMS operates various institutes providing technical, management and para-medical education in Meerut and Greater Noida (also in Uttar Pradesh). The society also operates a school, IIMT Academy, in Meerut, affiliated to the Indian School Certificate Examination (ICSE). AMS is professionally managed by its executive council, academic council, and finance committee; its chairman is Mr. Yogesh Mohan Gupta. Each of the institute of the society has its own governing body, headed by a principal/director. AMS is registered as a charitable society with the Income Tax Department of India.
AMS reported a profit after tax (PAT) of Rs.33 million on net revenues of Rs.560 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of Rs.90 million on net revenues of Rs.338 million for 2007-08.
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Mitu Samar
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