A recurring cost of credit rating?

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: fees paid for obtaining the rating by the SSI units up to the maximum limit of Rs 40,000 per unit as a one-time assistance. The amount of assistance is based on turnover. Units with turnover up to Rs 50 lakh are eligible for assistance up to 75% of the fee charged by the rating agency subject to a ceiling of Rs 25,000; units with turnover above Rs 50 lakh and up to Rs 200 lakh will get up to 75%, subject to a ceiling of Rs 30,000; and units with turnover above Rs 200 lakh, will get up to 75% of the fee charged, subject to a ceiling of Rs 40,000.

Initially, the following six agencies were enlisted under the scheme: Dun & Bradstreet (D&B), Onicra, Icra, Care, Fitch and Crisil.

Recently, Sidbi, along with a few banks, has also launched dedicated credit rating agency called SME Rating Agency of India Ltd (SMERA). The agency will also be covered under the scheme operated by the SSI ministry/NSIC.

The choice of agency depends upon your needs and affordability. The rating is two pronged: on the financial strength and on the performance capability of the unit concerned. The purpose is to facilitate access to finance and access to new markets by creating trust among the business partners. You may choose an international agency if you want to operate in international markets both for imports or exports, or you may choose an agency preferred by your banker if your primary concern is access to finance. Also, do check the cost of periodic ratings after the first one. The financial assistance is one time only. The recurring cost of some agencies may be high.

We find there is no clarity on importability of air conditioners filled with HCFC 22 gas in the foreign trade policy. Customs officials at ports have been raising objections and asking import licences. Could you please clarify?
—Vivek Bhartia, Mumbai through email

The matter is now settled, as the DGFT has recently issued a notification (no.26 dt. 13.09.05) allowing clearance of such air conditioners. According to the circular, the DGFT is in consultation with the Ministry of Environment and Forests, in order to evolve Gatt-compatible regulation for import of air conditioners.