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Suresh Angadi Education Foundation (Revised) April 28, 2021 Ratings Amount Facilities Rating1 Rating Action (Rs. crore) CARE D Long Term Bank Facilities 19.82 Assigned (Single D) Rating removed from 59.54 CARE D Long Term Bank Facilities ISSUER NOT COOPERATING (Enhanced from 34.02) (Single D) category and Reaffirmed 79.36 Total Facilities (Rs. Seventy-Nine Crore and Thirty-Six Lakhs Only) Details of facilities in Annexure-1 Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of Suresh Angadi Education Foundation (SAEF) are tempered by past delays in servicing debt obligations.

Key rating sensitivities Positive rating sensitivities  Trust’s ability to service the loans on a timely basis for a continuous period of 90 days.

Detailed description of the key rating drivers Key Rating Weaknesses Delays in repayment of sanctioned facilities As per the bank statements submitted, the trust is servicing the repayment obligations along with delay as a result penal interest is also charged in the bank statements. As per subsequent interaction with the banker, the same was also confirmed.

Liquidity analysis: Poor Liquidity position of the trust is poor. As per the bank statements submitted, the trust is servicing the repayment obligations along with delay; as a result, penal interest is also charged in the bank statements. As per subsequent interaction with the banker, the same was also confirmed by him. The trust did not avail of any moratorium related to the COVID-19 relief package as announced by RBI.

Analytical approach: Standalone

Applicable Criteria CARE’s Policy on Default Recognition

About the Trust Suresh Angadi Education Foundation (SAEF) was established in the year 2008 by Late Mr. Suresh Channabasappa Angadi, who was once an MP from Belagavi, till Sept’20. The trust was established to set up educational institutions in Belagavi. SAEF started Angadi College of Commerce & Science (affiliated with Rani Channamma University, Belagavi) in 2008 which provides courses like PUC, B. Com, BBA, B.Sc. & BCA. Subsequently in 2009, it started Angadi Institute of Technology and Management (affiliated with Visvesvaraya Technological University) which provides courses like B.E. (Civil, Mechanical, Electrical & Electronics, Computer Science), MBA, M.Tech. and other PG courses, also diploma course (affiliated with DTE, ) in civil and mechanical was introduced in the year 2013. In 2015, the trust started International school (affiliated with CBSE, ). Angadi School of Architecture was established in 2016.

1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications. 1 CARE Ratings Limited

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Brief Financials (Rs. crore) FY19 FY20 A A Total operating income 18.35 17.23 PBILDT 8.31 5.95 PAT 0.75 -3.52 Overall gearing (times) 3.81 5.09 Interest coverage (times) 2.23 1.03 A: Audited Status of non-cooperation with previous CRA: Not Applicable Any other information: Not Applicable Annexure-1: Details of Facilities Size of the Rating assigned Name of the Date of Coupon Maturity Issue along with Instrument Issuance Rate Date (Rs. crore) Rating Outlook Fund-based - LT-Term - - September, 2029 59.54 CARE D Loan Fund-based - LT- Funded Interest term - - September, 2029 19.82 CARE D Loan

Annexure-2: Rating History of last three years Current Ratings Rating history Date(s) Name of the Type Rating & Date(s) & Date(s) & Date(s) & Sr. Amount Instrument/Bank Rating(s) Rating(s) Rating(s) Rating(s) No. Outstanding Facilities assigned assigned in assigned in assigned in (Rs. crore) in 2021- 2020-2021 2019-2020 2018-2019 2022 1)CARE D; 1)CARE D; 1)CARE D; Stable; ISSUER CARE ISSUER NOT ISSUER NOT Fund-based - LT- NOT 1. LT 59.54 D - COOPERATING* COOPERATING* Term Loan COOPERATING* (14-Jan-21) (18-Jul-18) (29-Oct-19)

Fund-based - LT- CARE 2. Funded Interest LT 19.82 D - - - - term Loan

Annexure-3: Detailed explanation of covenants of the rated instrument / facilities: Not applicable

Annexure 4: Complexity level of various instruments rated for this Company Sr. No. Name of the Instrument Complexity Level 1. Fund-based - LT-Term Loan Simple 2. Fund-based - LT-Funded Interest Term Loan Simple Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

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Contact Us Media Contact Name: Mradul Mishra Tel # +91-22-6837 4424 Email: [email protected]

Analyst Contact: Name: Avinava Adhikary Tel # 033-4018 1906 Email: [email protected]

Business Development Contact Name: Nitin Dalmia Tel # 080-466 2555 Email: [email protected]

About CARE Ratings: CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in . CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices. Disclaimer CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades. **For detailed Rationale Report and subscription information, please contact us at www.careratings.com

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