th NSIC – CARE Ratings Performance and Credit Rating for Micro and Small Enterprises (MSEs) About CARE Ratings NSIC – CARE Ratings Performance and Credit Rating for MSEs Advantages of Rating Benefits of Rating Eligibility for the Scheme Rating Process CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India. With the rating volume of debt of around Rs. CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO gradings. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assits 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. CARE Ratings has signed a Memorandum of Understanding with The National Small Industries Corporation Limited (NSIC) to introduce the NSIC – CARE Ratings Performance and Credit Rating for MSEs. The Indian Bank Association (IBA) has been involved in formulating this Scheme. CARE Ratings methodology for the Performance and Credit Rating Scheme for MSEs will cover various indicators encompassing the financial, business, operational and management aspects of MSEs. At the end of the rating exercise, MSEs will receive a rating which would state reasons behind the rating assigned and highlight strengths and weaknesses of existing operations. The rating assigned and accepted will be put on CARE Ratings website that is accessed by various investors, banks and financial institutions on a regular basis. ? Obtain quicker and cheaper credit for rated MSEs ? Facilitate capability assessment and credibility of MSEs by their clients ? Help MSEs obtain leverage from the parties in the supply chain. ? Affordable to MSEs since 75% of the rating fees are subsidised ? An independent third party evaluation adding to company's credibility ? Credibility & confidence building with business partners ? Scope of self correction & self improvement ? Enhanced visibility through publication of rating agency websites ? Wider recognition & acceptance ? Introduction of good corporate governance practices All Micro and Small units can avail of the benefits under this scheme. As a proof of eligibility, CARE Ratings requires a registration certificate issued by the Micro and Small Enterprise registration authority, namely, the Ministry of Micro, Small & Medium or District Industry Centre or the Directorate of Industries. 1. Application for Rating from the entity. 2. Submission of Information by the entity. 3. Discussion with entity’s management. 4. Analysis of Information obtained from the entity. 5. Rating Assigned to the entity. MSEs desirous of getting themselves rated will need to submit the application in specified format, in duplicate. The Application form should include documents as specified therein. Duly completed application form, addressed to CARE Ratings, can be submitted to the nearest CARE Ratings office. Following this, the rating process will start and the interaction with the management would be initiated. The rating team may require extra information in order to complete the rating exercise. Entire rating process will be generally completed in 60 days or earlier, from the date the required documents and information received by CARE Ratings. 92 lakh crore (as on March 2017) ,
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NSIC – CARE Ratings Performance and Credit Rating forMicro and Small Enterprises (MSEs)
About CARE Ratings
NSIC – CARE Ratings Performance and Credit Rating for MSEs
Advantages of Rating
Benefits of Rating
Eligibility for the Scheme
Rating Process
CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit
rating agency in India. With the rating volume of debt of around Rs. CARE Ratings is proud of its rightful
place in the Indian capital market built around investor confidence. CARE Ratings has also emerged as the leading agency for covering
many rating segments like that for banks, sub-sovereigns and IPO gradings.
CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and
assits 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.
CARE Ratings has signed a Memorandum of Understanding with The National Small Industries Corporation Limited (NSIC) to introduce
the NSIC – CARE Ratings Performance and Credit Rating for MSEs. The Indian Bank Association (IBA) has been involved in formulating this
Scheme. CARE Ratings methodology for the Performance and Credit Rating Scheme for MSEs will cover various indicators encompassing
the financial, business, operational and management aspects of MSEs. At the end of the rating exercise, MSEs will receive a rating which
would state reasons behind the rating assigned and highlight strengths and weaknesses of existing operations. The rating assigned and
accepted will be put on CARE Ratings website that is accessed by various investors, banks and financial institutions on a regular basis.
?Obtain quicker and cheaper credit for rated MSEs
?Facilitate capability assessment and credibility of MSEs by their clients
?Help MSEs obtain leverage from the parties in the supply chain.
?Affordable to MSEs since 75% of the rating fees are subsidised
?An independent third party evaluation adding to company's credibility
? Credibility & confidence building with business partners
? Scope of self correction & self improvement
? Enhanced visibility through publication of rating agency websites
? Wider recognition & acceptance
? Introduction of good corporate governance practices
All Micro and Small units can avail of the benefits under this scheme. As a proof of eligibility, CARE Ratings requires a registration
certificate issued by the Micro and Small Enterprise registration authority, namely, the Ministry of Micro, Small & Medium or District
Industry Centre or the Directorate of Industries.
1. Application for Rating from the entity.
2. Submission of Information by the entity.
3. Discussion with entity’s management.
4. Analysis of Information obtained from the entity.
5. Rating Assigned to the entity.
MSEs desirous of getting themselves rated will need to submit the application in specified format, in duplicate. The Application form
should include documents as specified therein. Duly completed application form, addressed to CARE Ratings, can be submitted to the
nearest CARE Ratings office. Following this, the rating process will start and the interaction with the management would be initiated. The
rating team may require extra information in order to complete the rating exercise. Entire rating process will be generally completed in 60
days or earlier, from the date the required documents and information received by CARE Ratings.
92 lakh crore (as on March 2017) ,
List of Documents to be submitted with the Application Form1. SSI/EM-I/EM-II/UAN/UAM (Udyog Aadhaar Memorandum) Registration Certificate
2. Partnership Deed / Memorandum & Article of Association.
3. Authority letter to sign the application.
4. List of all partners / directors with their age, address, Net worth / Income Tax Return, qualifications and experience.
5. Copy of the audited accounts for the last three years
6. In case of new project / expansion, copy of the project report containing a brief project profile, cost of project and source / means of finance.
7. Brief write-up about the products manufactured, end users, marketing tie-up and orders in hand.
8. Details of subsidy, tax concession available to the applicant.
9. Quality certificates, export awards won, membership of any associations.
10. Any other information that would enable CARE Ratings to understand the business better.
www.careratings.com
CARE Ratings Limited (Formerly known as Credit Analysis & Research Ltd.)
