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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 45.00 | ACUITE B- | Upgraded & Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 45.00 | - | - |
| Rating Rationale |
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Acuité has updgraded and withdrawn the long-term rating to ‘ACUITE B-’ (read as ACUITE B minus) from ‘ACUITE D’ (read as ACUITE D) on the Rs.45.00 Cr. bank facilities of MGS Infotech Research and Solutions Private Limited.(MGSIRSPL). The rating is being withdrawn on account of the request received from the company and the NOC received from the banker as per Acuité’s policy on withdrawal of ratings. Rationale for Rating Upgrade The rating is upgraded on account of timely servicing of debt obligations by MGSISRPL. |
| About the Company |
| Faridabad based MGS Infotech Research and Solutions Private Limited was incorporated in 2004 promoted by Dr.Pankaj Batra, Dr, Deepak Gandhi, Dr. Shalini Gandhi, Mr. Ramesh Kumar Batra and Mr. Chandan Batra.The company is setting up a multi speciality hospital having 336 beds under the name of “Batra Hospital”. The hospital construction is is expected to be completed commence operations from March 2023 onwards. |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of MGSIRSPL to arrive at the rating. |
Key Rating Drivers
| Strengths |
| >Experienced Promoters and Management MGS Infotech Research and Solutions Private Limited was incorporated as a private company in 2004. It is promoted by Dr. Pankaj Batra, Dr, Deepak Gandhi, Dr. Shalini Gandhi, Mr. Ramesh Kumar Batra and Mr. Chandan Batra. Promoters Dr. Pankaj Batra, Dr, Deepak Gandhi and Dr. Shalini Gandhi have significant amount of experience in the medical industry. Also Mr. R.K. Batra, has an extensive experience of almost four decades spanning across various industries/ businesses like logistics, oil and gas etc.. Acuité believes that the extensive experience of the promoters is likely to benefit MGSIRSPL over the medium term. |
| Weaknesses |
| >Nascent stage of operations. The company is yet to commence its commercial operation and the same is expected to start from March 2023. Availability of medical and non medical staff at affordable costs provision of uninterrupted operational infrastructure, competition from other existing hospitals, technological advances in medical technology, desired occupancy levels etc are the few of the key post operational business risks. The company’s ability to scale up its business will remain a key rating sensitivity factor. >Highly Regulated Area of Operations In India, the healthcare sector is highly regulated. Hence, regulatory challenges continue to pose a significant risk to private healthcare as they are highly susceptible to changes in the regulatory framework. |
| Rating Sensitivities |
| Not Applicable |
| Material covenants |
| None |
| Liquidity Position |
| Stretched |
| MGSIRSPL’s liquidity is stretched considering the nascent stage of operations, significant requirement of funds to acquire new medical equipments and their pending debt tie-up. |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 0.00 | 0.00 |
| PAT | Rs. Cr. | 0.00 | 0.00 |
| PAT Margin | (%) | 0.00 | 0.00 |
| Total Debt/Tangible Net Worth | Times | 0.72 | 1.65 |
| PBDIT/Interest | Times | 1.00 | 1.00 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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. |
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