RATING RATIONALE
24Aug2021

Asarfi Hospital Limited

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities aggregating Rs. 6.56 Crs. of Asarfi Hospital Limited (or the company) and retains the ratings in the Issuer Not Cooperating category, based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(05 Aug 2020)
Present
Fund Based 5.66 5.66 Long Term BWR B- /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Reaffirmation/ISSUER NOT COOPERATING*
Non Fund Based 0.90 0.90 Short Term BWR A4
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 6.56 6.56 (Rupees Six Crores and Fifty Six lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

In view of the non-availability of the information and lack of cooperation from the issuer, Brickwork Ratings has reaffirmed the rating for the long term bank loan facility of Rs. 5.66 Crs of Asarfi Hospital Limited at ‘BWR B-/Stable and also for their short term bank loan facility of Rs. 0.90 Crs at BWR A4 (aggregate rated amount Rs. 6.56 Crores), while retaining the same in the Issuer Not Cooperating’ category, based on best available information as the Issuer did not cooperate.

The rating was due for a review in August 2021. BWR took up with the issuer and its banker to provide required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the company and its banker, BWR is unable to assess the company’s financial performance or its ability to service its debt and maintain a valid rating. The company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, continued lack of management cooperation and lack of banker’s feedback, the long term and short term ratings are reaffirmed and both the ratings are continued in the Issuer Not Cooperating* category, as the Issuer did not cooperate.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Asarfi Hospital Limited (AHL) was incorporated on 04th October, 2005 as a Private Limited Company. The constitution of AHL was changed to a limited company during the year 2012. The Registered Office of the Company is located at Phularitand Kharkharee P.S. - Madhubani District, Dhanbad, Jharkhand. AHL renders health care services and nursing education. It is a 100 bed premium private general medical facility offering advanced medical care and emergency services. The directors of the company are Mr. Gopal Singh, Mr. Sukanti Kumar Das, Ms. Madhuri Singh and Mr. Uday Pratap Singh.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 5.66
BWR B-/Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
05Aug2020
BWR B-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
24Jan2018
BWR B/Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 0.90
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
05Aug2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
24Jan2018
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 6.56 (Rupees Six Crores and Fifty Six lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Analytical Contacts

Mrinal Kanti Sarkar

Ratings Analyst mrinal.s@brickworkratings.com

Anuradha Gupta

Director - Ratings anuradha.g@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Asarfi Hospital Limited
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 State Bank Of India (SBI) Cash CreditSanctioned 1.00 _ 1.00
2 State Bank Of India (SBI) Term LoanSanctioned 4.45 _ 4.45
3 State Bank Of India (SBI) Corporate LoanSanctioned 0.21 _ 0.21
4 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 0.90 0.90
Total 5.66 0.90 6.56
TOTAL (Rupees Six Crores and Fifty Six lakhs Only)
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