: CRISIL Ratings :

May 03, 2011
Mumbai

CRISIL ‘D’ for SRI RAJESHWARA EDUCATIONAL SOCIETY’s bank facilities

Rs.65.30 Million Long-Term Loan	D (Assigned)
Rs.30.00 Million Overdraft Facility	D (Assigned)
Rs.6.20 Million Proposed Long-Term Bank Loan Facility	D (Assigned)

CRISIL has assigned its ‘D’ rating to the bank facilities of Sri Rajeshwara Educational Society (SRES). The ratings reflect instances of delay by SRES in servicing its debt; the delays have been caused by the society’s weak liquidity.

SRES is also susceptible to adverse regulatory changes in the education sector and changing educational preferences of students. These weaknesses are partially offset by SRES’s diversified revenue profile, and its promoters’ extensive industry experience.

About the Society
Set up in 1991, SRES is managed by its promoter-director Mr. Madhukar Reddy.The society runs seven institutions offering junior college education, and courses in engineering, information technology, and pharmacy. The institutes are approved by All India Council for Technical Education, New Delhi, affiliated to Kakatiya University, Warangal (Andhra Pradesh), and approved by the Government of Andhra Pradesh. The society has 7116 students.

SRES reported a surplus (excess of income over expenditure) of Rs.5 million on net revenues of Rs.133 million for 2009-10, as against a surplus of Rs.10 million on net revenues of Rs.123 million for 2008-09.

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Last updated: March 31, 2011

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

Sri Rajeshwara Educational Society