SME Ratings

CRISIL pioneered the concept of ratings for the SME sector in India, and, presently, within a span of just five years, has the largest number of ratings on the SME sector in the world. As on September 30, 2011, CRISIL has assigned ratings to over 23,500 SMEs, of which over 8,000 are currently outstanding. CRISIL's SME ratings are affordable and tailor-made services designed for SMEs. Credit evaluation in the SME sector needs a specialised approach, as the issues and drivers of credit quality are different from those applicable for large companies. Understanding this distinction, CRISIL introduced the concept of SME credit ratings in India, designed exclusively for small enterprises, in 2005. Today CRISIL provides the widest coverage of SME rating in India. Under SME Ratings, CRISIL has five distinct 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. Surveillance based on specific requirement: A CRISIL SME rating is valid for one year from the date of the SME report issued by CRISIL, provided no significant changes/events occur during this period that could materially affect the business or financial parameters of the organisation. SMEs are encouraged to obtain rating reviews periodically, and CRISIL carries out reviews whenever requested by the SME or the lender.

NSIC-CRISIL Performance and Credit Ratings for SSIs

In association with National Small Industries Corporation (NSIC), CRISIL rates SSIs on a special rating scale. The government has presently subsidised the fees for this rating by up to 75 per cent, enabling small enterprises to get themselves rated. Eligibility for NSIC-CRISIL Rating Any enterprise registered in India as a micro or small enterprise can benefit from this rating. As a proof of eligibility, CRISIL requires a registration certificate issued by the micro and small enterprise registration authority, namely, the District Industry Centre or the Directorate of Industries.

CRISIL 360 Degree

In addition to rating SMEs/SSIs, CRISIL offers the following services:

Dealer Evaluation Vendor Evaluation

CRISIL Dealer Evaluation Services (CRIS-Des) CRIS-Des helps corporate entities benchmark the strengths of their dealers and evaluate potential dealers. CRISIL's unique 360-evaluation process includes site visits, interfaces with bankers and customers, and detailed analysis of audited balance sheets, profit and loss (P&L) statements, and bank statements. CRISIL also analyses the performance of the dealer's group entities. The analysis culminates in a score or grade that is easily comparable with that of other dealers. CRISIL draws on several universal parameters, benchmarks, and weights as part of the dealer evaluation process. These help customise the evaluation exercise to meet the specific needs of corporate entities. Benefits CRIS-Des helps:

Rationalise dealer networks by listing and comparing systemic issues Standardise dealer appointment processes with its sharp insights on individual dealer capabilities Identify dealers that are best suited to requirements

CRISIL Vendor Evaluation Services (CRIS-Vens) Vendors are strategic partners in every business. Building robust processes alone does not ensure the quality of supplies. It is equally essential to understand the financial and management strengths of vendors, the diversity in their activities, and the business environment in which they function. CRIS-Vens provides corporate entities with this critical information. CRISIL's analytical strength forms the core of this service. It includes analysis of both financial and non-financial data gathered from the vendor's P&L statement, balance sheet, bank statements, management discussions, and feedback from bankers, customers, suppliers, and other relevant sources. Site visits are conducted to gather ground-level information. Benefits CRIS-Vens helps:

Categorise vendors into tiers by mapping their strengths and weaknesses Optimise vendor development to save on precious resources Build a sturdy resource pool of vendors in a methodical manner De-risk the supply chain

CRISIL VERIFIED CRISIL offers SMEs value added services in the form of an independent verification which helps SMEs establish their credentials. An organisation authenticated and verified by CRISIL will be provided a CRISIL VERIFIED ID, which is a unique 12digit code. A CRISIL VERIFIED ID affirms that the organisation's credentials have been verified and validated. If an organisation has an online presence, its website will display an electronic "CRISIL VERIFIED" logo to let potential customers, suppliers and other business associates know that the organisation has been verified by CRISIL.

Key Benefits of CRISIL VERIFIED

Positions an organisation as a reliable and credible business partner Helps an organisation gain vital advantage by setting it apart from its competitors Attracts global customers, thereby enhancing an organisation's business growth Lets organisations without websites tap new business opportunities in the online space Lets an organisation leverage on the 'CRISIL' brand