Rationale-Press Release
IRIS Health Services Limited
May 10, 2019
Ratings
1
Facilities Amount (Rs. crore) Rating Rating Action
CARE D Assigned
Long-term Bank Facilities 30.97
(Single D)
CARE D Assigned
Short-term Bank Facilities 0.88
(Single D)
Total 31.85
(Rupees Thirty One crore and
Eighty Five lakh only)
*Details of instruments/facilities in Annexure-1
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of IRIS Health Services Limited (IRIS) are primarily constrained by delay in debt
servicing of the company.
Going forward, the ability of the company to serve its debt obligation in a timely manner will be the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing
There are on-gong delays in term loan servicing of the company due to inadequate cash accruals from operations owing
to initial year of operations.
Comment on liquidity position
The liquidity position of the company remained stressed due to negative cash flow from operations and currently the
company is into default. Moreover the current ratio was at 0.24x as on March 31, 2018. The company has cash and cash
equivalent amounting to Rs.1.10 crore as on March 31, 2018
Analytical approach: Standalone
Applicable Criteria
CARE’s Policy on Default Recognition
About the Company
Incorporated in December, 2007, IRIS Health Services Ltd (IRIS) was promoted by Mr. Pavan Kumar Poddar, Mr.
Govindswamy Sridharan, Mr. Nikhil Poddar, Mr. Ramesh Kumar Kedia, Mr. Vivek Kumar Kathotia and Mr. Sanjay Kumar
Ginoria based out of Kolkata, West Bengal. The company has started its commercial operations from January 2008
onwards. The company has been engaged in healthcare services. Currently the company runs its hospital with 180 beds
equipped with latest technology and well qualified & experienced doctors, surgeons and support staffs.
The key promoter Mr. Pavan Kumar Poddar has around two decades of experience in the similar line of business, looks
after the day to day operation of the company. He is supported Mr. Sanjay Kumar Ginoria (Chief Financial Officer) who
has around two decades of experience in the industry.
Brief Financials (Rs. crore) FY17 (A) FY18 (A)
Total operating income 22.29 24.77
PBILDT -0.42 -2.32
PAT -16.74 -17.07
Overall gearing (times) -5.56 -2.45
Interest coverage (times) -0.06 -0.32
A: Audited, Prov. – Provisional
The company has reported turnover of Rs.24.00 crore during FY19 provisional.
Status of non-cooperation with previous CRA: ICRA has suspended its rating as per the press release dated September
2014.
Any other information: Not Applicable.
1
Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications.
1 CARE Ratings Limited
Rationale-Press Release
Rating History (Last three years): Please refer Annexure-2
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 care@careratings.com for any clarifications.
Analyst Contact:
Name: Rajesh Shaw
Tel: 033-40581911
Mobile: +91- 9007700172
Email: rajesh.shaw@careratings.com
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 India. 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 credit quality and are not recommendations to sanction, renew, disburse or recall the
concerned bank facilities or to buy, sell or hold any security. 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.
In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is 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.
Annexure-1: Details of Instruments/Facilities
Name of the Date of Coupon Maturity Size of the Rating assigned
Instrument Issuance Rate Date Issue along with Rating
(Rs. crore) Outlook
Fund-based - LT-Term - - March, 2023 24.18 CARE D
Loan
Fund-based - LT-Funded - - March, 2023 6.79 CARE D
Interest term Loan
Non-fund-based - ST- - - - 0.88 CARE D
Bank Guarantees
Annexure-2: Rating History of last three years
Sr. Name of the Current Ratings Rating history
No. Instrument/Bank Type Amount Rating Date(s) & Date(s) & Date(s) & Date(s) &
Facilities Outstanding Rating(s) Rating(s) Rating(s) Rating(s)
(Rs. crore) assigned in assigned in assigned in assigned in
2019-2020 2018-2019 2017-2018 2016-2017
1. Fund-based - LT-Term LT 24.18 CARE D - - - -
Loan
2. Fund-based - LT-Funded LT 6.79 CARE D - - - -
Interest term Loan
3. Non-fund-based - ST- ST 0.88 CARE D - - - -
Bank Guarantees
2 CARE Ratings Limited
Rationale-Press Release
CONTACT
Head Office Mumbai
Ms. Meenal Sikchi Mr. Ankur Sachdeva
Cell: + 91 98190 09839 Cell: + 91 98196 98985
E-mail: meenal.sikchi@careratings.com E-mail: ankur.sachdeva@careratings.com
Ms. Rashmi Narvankar Mr. Saikat Roy
Cell: + 91 99675 70636 Cell: + 91 98209 98779
E-mail: rashmi.narvankar@careratings.com E-mail: saikat.roy@careratings.com
CARE Ratings Limited
(Formerly known as Credit Analysis & Research Ltd.)
Corporate Office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022
Tel: +91-22-6754 3456 | Fax: +91-22-6754 3457 | E-mail: care@careratings.com
AHMEDABAD JAIPUR
Mr. Deepak Prajapati Mr. Nikhil Soni
32, Titanium, Prahaladnagar Corporate Road, 304, Pashupati Akshat Heights, Plot No. D-91,
Satellite, Ahmedabad - 380 015 Madho Singh Road, Near Collectorate Circle,
Cell: +91-9099028864 Bani Park, Jaipur - 302 016.
Tel: +91-79-4026 5656 Cell: +91 – 95490 33222
E-mail: deepak.prajapati@careratings.com Tel: +91-141-402 0213 / 14
E-mail: nikhil.soni@careratings.com
BENGALURU
Mr. V Pradeep Kumar KOLKATA
Unit No. 205 -208, 2nd Floor , Prestige Meridian 1, No. 30, Ms. Priti Agarwal
M. G. Road, Bengaluru - 560001 3rd Floor, Prasad Chambers, (Shagun Mall Bldg.)
Cell: +91 98407 54521 10A, Shakespeare Sarani, Kolkata - 700 071.
Tel: +91-80-46625555 Cell: +91-98319 67110
Email: pradeep.kumar@careratings.com Tel: +91-33- 4018 1600
E-mail: priti.agarwal@careratings.com
CHANDIGARH
Mr. Anand Jha NEW DELHI
SCF No. 54-55, Ms. Swati Agrawal
First Floor, Phase 11, 13th Floor, E-1 Block, Videocon Tower,
Sector 65, Mohali - 160062 Jhandewalan Extension, New Delhi - 110 055.
Chandigarh Cell: +91-98117 45677
Cell: +91 85111-53511/99251-42264 Tel: +91-11-4533 3200
Tel: +91- 0172-490-4000/01 E-mail: swati.agrawal@careratings.com
Email: anand.jha@careratings.com
PUNE
CHENNAI Mr. Aakash Jain
Mr. V Pradeep Kumar 9th Floor, Pride Kumar Senate,
Unit No. O-509/C, Spencer Plaza, 5th Floor, Plot No. 970, Bhamburda, Senapati Bapat Road,
No. 769, Anna Salai, Chennai - 600 002. Shivaji Nagar, Pune - 411 015.
Cell: +91 98407 54521 Cell: +91-81064 00001
Tel: +91-44-2849 7812 / 0811 Tel: +91-20- 4000 9000
Email: pradeep.kumar@careratings.com E-mail: aakash.jain@careratings.com
COIMBATORE CIN - L67190MH1993PLC071691
Mr. V Pradeep Kumar
T-3, 3rd Floor, Manchester Square
Puliakulam Road, Coimbatore - 641 037.
Tel: +91-422-4332399 / 4502399
Email: pradeep.kumar@careratings.com
HYDERABAD
Mr. Ramesh Bob
401, Ashoka Scintilla, 3-6-502, Himayat Nagar,
Hyderabad - 500 029.
Cell : + 91 90520 00521
Tel: +91-40-4010 2030
E-mail: ramesh.bob@careratings.com
3 CARE Ratings Limited
