: CRISIL Ratings :

May 03, 2011
Mumbai

CRISIL ‘D’ for SARVAHITHA EDUCATIONAL SOCIETY’s bank facilities

Rs.81.50 Million Long-Term Loan	D (Assigned)
Rs.25.00 Million Overdraft Facility	D (Assigned)
Rs.23.50 Million Proposed Long-Term Bank Loan Facility	D (Assigned)

CRISIL has assigned its ‘D’ rating to the bank loan facilities of Sarvahitha Educational Society (SES). The rating reflects instances of delay by SES in servicing its debt; the delays have been caused by the society’s weak liquidity.

SES is also susceptible to adverse regulatory changes, and intense competition in the educational sector.These rating weaknesses are partially offset by its diversified revenue profile, and promoters’ extensive experience in the education sector.

About the Society
Set up in 1995, SES is managed by its promoter-director Mr. Madhukar Reddy, who took over the society in 2002. The society runs 35 institutes, including those offering the MBA, MCA, and BE qualifications, a junior college for commerce and science streams, and schools with classes from nursery to Class 10. The institutes are approved by the All India Council for Technical Education, New Delhi, and affiliated to the Jawaharlal Nehru Technological University, Hyderabad, and approved by the Government of Andhra Pradesh (GoAP). The society has a total 24,683 students.

SES reported a surplus (excess of income over expenditure) of Rs.35 million on net revenues of Rs.240 million for 2009-10, as against a surplus of Rs.17 million on net revenues of Rs.166 million for 2008-09.

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Last updated: March 31, 2011

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May 03, 2011	http://www.crisil.com

Sarvahitha Educational Society