Rating game picks up pace
In fact, according to National Small Industries Corporation (Nsic), out of the 16,000 companies that have applied for ratings to various agencies like Crisil, Samera, Fitch and Dun and Bradstreet, about 15,000 units have already been awarded ratings. The growing popularity shows in numbers. In 2005-06, only 671 companies got rated and in the first six months of this financial year it moved up to 3,487 enterprises. Engineering, textile and auto component companies in western and southern states are taking the lead in getting themselves rated.
Says Parag Patki, chief executive officer, SME Rating Agency (Smera), “The rating provides various benefits like better terms of financing, favourable interest rates, self improvement tools, better marketability and access to wider sources of finance.” Last year, the company rated 1,750 units and it plans to double the number this financial year.
The rating process was started by Nsic in consultation with credit rating agencies and Indian Banks’ Association and they together formulated a Performance & Credit Rating Scheme for Micro & Small Enterprises. The scheme was approved by the Ministry of MSME in 2004 and Nsic was appointed as a nodal agency to implement the scheme.
Nsic empanelled various credit rating agencies like Care, Crisil, Dun & Bradstreet, Fitch, Icra, Onicra and Smera, to conduct the rating of interested
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