Professional Documents
Culture Documents
Who We Are
CRISIL is a global analytical company providing ratings, research, and risk and
policy advisory services.
We are India's leading ratings agency. We are also the foremost provider of highend research to the world's largest banks and leading corporations. With
sustainable competitive advantage arising from our strong brand, unmatched
credibility, market leadership across businesses, and large customer base, we
deliver analysis, opinions, and solutions that make markets function better.
Our defining trait is our ability to convert data and information into expert
judgements and forecasts across a wide range of domains, with deep expertise and
complete objectivity.
At the core of our credibility, built up assiduously over the years, are our values:
Integrity, Independence, Analytical Rigour, Commitment and Innovation.
CRISIL's majority shareholder is Standard and Poor's (S&P). Standard & Poor's, a
part of McGraw Hill Financial (formerly The McGraw-Hill Companies)
(NYSE:MHFI), is the world's foremost provider of credit ratings.
Who We Serve
We address a rich and globally diversified client base. Within India our customers
range from small enterprises to the largest corporations and financial institutions;
outside India our customers include the worlds largest banks and leading
corporations. We also work with governments and policy-makers in India and other
emerging markets in the infrastructure domain.
How We Add Value
We empower our customers, and the markets at large, with independent analysis,
benchmarks and tools. These help lenders and borrowers, issuers and investors,
regulators, and market intermediaries make better-informed investment and
business decisions. Our offerings allow markets and market participants to become
more transparent and efficient - by mitigating and managing risk, taking pricing
CRISIL Ratings' clientele includes all the industry majors - 23 of the BSE Sensex
constituent companies and 39 of the NSE Nifty constituent companies, accounting
for 80 per cent of the equity market capitalization.
CRISIL's credit ratings
An opinion on probability of default on the rated obligation
Forward Looking
Specific to obligation been rated
But they are not
CRISIL ratings are based on a robust and clearly articulated analytical framework,
which ensures comprehensiveness, standardization, comparability, and effective
communication of the ratings assigned and of every timely rating action. The
assessment is based on the highest standards of independence and analytical rigour.
CRISIL rates a wide range of entities, including
Industrial Companies
Banks
Non Banking Financial Companies
Infrastructure Companies
Microfinance Institutions
Insurance Companies
Mutual Funds
State Governments
Urban Local Bodies
CRISIL OFFERINGS
CRISIL SME Ratings: CRISIL SME Rating indicates the SME's performance
capability and financial strength. CRISIL SME Ratings are entity-specific ratings,
unlike credit ratings, which are debt-obligation-specific.
CRISIL SME Rating reflects the level of creditworthiness of the SME, adjudged in
relation to other SMEs.
Following are the key features of CRISIL SME Ratings:
Entity rating: SME Ratings are entity specific
Eligibility: All types of business enterprises, including public and private
limited companies, cooperative societies, partnership firms, and sole
proprietorships, are eligible for CRISIL SME Ratings. Registration as a
micro and small enterprise is not required, as subsidy support from the
government is not available for these ratings.
to
sign
the
Constitution:
7.
Proprietorship/
Partnership/
Private
Limited
Co./ Limited Co./
Co-op. Society.
Details of existing
borrowing
/
banking
arrangements:
a.Name
of
Financial
Instt./
Bank/
Lenders
b.Nature
of
assistance/ loan/
limit
availed
c.Amount
(Rs
lakh)
d.Self declaration
regarding conduct
of the account
3.
Date of establishment/ 8.
incorporation
Production capacity:
a.Name of Product
b.Units
c.Installed Capacity
d.Actual Production
4.
Industry
Information 9.
a.Industry
segment
b.Sub-segment of industry
c.Products
5.
Details
of
Promoters: 10. Suppliers' Reference: (please list 5 top
a. Name(s) of Proprietor/
suppliers of your firm/ company)
Partners/
Directors
a.Name of the supplier
b.Age
b.Percentage in total purchases
c.Father Husband's Name
c.Location
d.Share
holding
(percentage)
in
Firm/
Company
e.Residential
Address
f.Networth in Rs lakh along
with CA certified statement
g.Qualification
h.Nature of Experience with
No
of
years
i.Responsibilities in Firm/
Company:
j.Responsibilities in other
Businesses
10-25
25-50
50-75
>75
60,000
65,000
70,000
85,000
110,000
8,034
8,652
10,506
13,596
73,034
78,652
95,506
123,596
67,416
*
Special
Concessional Fees are applicable for CRISIL's partner MoU Bank customers and
Industry Association members. The fees mentioned above are inclusive of all
expenses CRISIL will incur in connection with the exercise. Please get in touch
with CRISIL representatives for further details on Concessional fees.
Units with green-field projects
Turnover (Rs Crore)
<2
<5
< 10
10-25
25-50
50,000
75,000
100,000
125,000 150,000
Service Tax(Rs.)
6,180
9,270
12,360
15,450
* Note:
18,540
Rating
(Rs.)
< 50
50-200
>200
40,000
45,000
60,000
5,562
7,416
Fees
44,944
50,562
67,416
25,000
30,000
40,000
19,944
20,562
27,416
Concessional Fees #
9,157
12,017
16,023
Performance
Capability
Highest
High
Moderate
Weak
Poor
High
SE 1A
SE 2A
SE 3A
SE 4A
SE 5A
Financial Strength
Moderate
SE 1B
SE 2B
SE 3B
SE 4B
SE 5B
Low
SE 1C
SE 2C
SE 3C
SE 4C
SE 5C
Client retention : Bank will be able to retain its good customers by providing
interest rate concessions to highly rated entities
Ratings could be used for all green-field projects where CRISILs appraisal
skills will be useful in evaluating the unique project risks
Mapping of the banks internal rating scale with CRISIL rating will reduce
the appraisal process significantly for the branch managers and enable them
to undertake quick and accurate decisions
BENEFITS OF CRISIL SME RATING
1. FASTER AND EASIER AVAILABILITY OF LOANS -:
Banks appreciate the independence and analysis involved in CRISILs
rating exercise. More than 31 banks have entered into a formal agreement
with CRISIL SME ratings, under which, they extend favourable terms and
conditions, to CRISIL rated units, including lower rate of interest.
2. INCREASED CREDIBILITY WITH BANKERS, CUSTOMERS AND
BUSINESS ASSOCIATES -:
An SME rating from CRISIL, increases the credibility of the rated unit, in
domestic and international markets, by providing the bank, customers, and
business, associates with credible information about the company.
This increases their confidence in the unit and helps in increasing business
and building better relationships.
3. DETAILED RATING REPORT -:
Each CRISIL rated SME receives a rating report which provides
comprehensive details about the rated unit, its functioning, as well as the
organizations strengths and weaknesses. This rating report can be used by
A. Benefits to Investors
1. Safety of investments. Credit rating gives an idea in advance to the investors
about the degree of financial strength of the issuer company. Based on rating he
decides about the investment.
2. Recognition of risk and returns. Credit rating symbols indicate both the returns
expected and the risk attached to a particular issue.
3. Freedom of investment decisions. Investors need not seek advice from the stock
brokers, merchant bankers or the portfolio managers before making investments.
Investors today are free and independent to take investment decisions themselves.
4. Wider choice of investments. As it is mandatory to rate debt obligations for
every issuer company, at any particular time, wide range of credit rated instruments
are available for making investment.
1. Stock brokers have to make less effort in persuading their clients to select an
investment proposal of making investment in highly rated instruments.
2. Thus rating enables brokers and other financial intermediaries to save time,
energy costs and manpower in convincing their clients.
Disadvantages of Credit Rating
1. Non-disclosure of significant information: Firm being rated may not provide
significant or material information, which is likely to affect the investors decision
as to investment, to the investigation team of the credit rating company.
2. Static study: Rating is a static study of present and past historic data of the
company at one particular point of time. Number of factors including economic,
political, environment, and government policies has direct bearing on the working
of a company.
3. Rating is no certificate of soundness: Rating grades by the rating agencies are
only an opinion about the capability of the company to meets its interest
obligations. Rating symbols do not pinpoint towards quality of products or
management or staff etc.
4. Rating may be biased: Personal bias of the investigating team might affect the
quality of the rating. The companies having lower grade rating do not advertise or
use the rating while raising funds from the public.
5. Rating under unfavorable conditions: Rating grades are not always
representative of the true image of a company. A company might be given low
grade because it was passing through unfavorable conditions when rated.
Papers sent to
CRISIL analysts
Background
research is
done
Management
discussion
over a
conference
call
Report
prepared and
sent to a rating
committee
Rating is assigned by the
committee
Step 3: Communication and publication of the rating
Rating is published on
the website with the
prior approval of the
client
5. ICRA Limited
Business Investment Information and Credit Rating
Establishment 1991
ICRA limited is a joint venture between Moodys Investors and various financial
services companies is a part of ICRA group which was founded in 1991. It is
a Credit rating agency listed on the National Stock Exchange and Bombay Stock
Exchange. ICRA has four subsidiaries ICRA Management Consulting Services
Ltd, ICRA Techno Analytics Ltd, ICRA Online Ltd, PT. ICRA Indonesia and ICRA
Lanka Ltd.
6. High Mark Credit Information Services
Business Financial Services
Establishment 2005
High Mark Credit Information Services is a recognized credit rating company in
India. It provides bureau services, analytic solutions and risk management to banks
and financial institutions operating in Micro-finance, Retail consumer finance,
MSME, Rural & Cooperative Sectors.
7. SME Rating Agency of India Ltd. (SMERA)
Business Performance & Credit Rating Scheme for Small Industries
Establishment 2005
SMERA Ratings Ltd a Mumbai based company now expanded to 13 more
locations was founded in year 2005. SMERA a joint venture of SIDBI, several
private sector banks in the country and Dun & Bradstreet Information Services
India Pvt. Ltd. (D&B). Since 2005 SMERA rated over 23,000 MSMEs pan India.