S. No.

Type of Risk Existing Units

a. Financial Risk 45
b. Qualitative Factors 0
c. Business and Industry Risk 15
d. Management Risk 25
e. Qualitative Parameter (External CRA) 5
f. Total 90
g. Borrower Rating 2
h. Country Risk Assessment (Downgrade) 4
Borrower Rating After Country Risk
i. 6
Assessment
j. Group Support (Upgrade) 2

k. Central Government Ownership (Upgrade) Not in list

l. New Unit Risk Factor

j. Final Borrower Rating SB-4
 New Units

18.75 75.00%
-10
30
45
5
88.75
2
4

Not in list

Rating capped at SB-05

SB-4
 Financial Risk

S. No. Parameter Score Weight

1 TOL/Adjusted TNW 5 2.5

2 Current Ratio 2 1
3 ROCE 10 2
4 PDBIT/Interest 10 2
5 PAT/Net Sales 4 2
6 Operating Cash Flow/Total Serviceable Debt 10 1
7 Average Sales Growth 10 1

8 Financial Flexibility (Flexibility to raise capital) 4 0.5

Group Risk (Impact of subsidiary/holding

9 6 0.5
company's borrowings as a % of TNW)
10 Forex Risk (Likely Loss/EBID) 10 0.5
Gross Average DSCR (For All Loans of the next
11 10 0.75
year)
12 Inventory Receivable Days 10 0.75
13 Aeging of Receivables 10 0.5
Total
Maximum Score

S. No. Actuals Value Score

1 TOL/Adjusted TNW 5
a Latest Ratio 1.8 3
b SMA of Last 3 Years' TOL/Adjusted TNW 1.8 1
c Industry Comparison of TOL/Adjusted TNW 1.8 1
S. No. Actuals Value Score
2 Current Ratio 2
a Latest Ratio 0.9 0
b SMA of Last 3 Years' Current Ratio 0.9 1
c Industry Comparison (Current Ratio) 0.9 1
S. No. Actuals Value Score
3 ROCE 10
a Latest Ratio 732.00% 8
b SMA of Last 3 Years' ROCE 732.00% 2
S. No. Actuals Value Score
4 PDBIT/Interest 10
a Latest Ratio 16.63 8
b SMA of Last 3 Years' PBDIT/Interest 16.63 2
S. No. Actuals Value Score
5 PAT/Net Sales 4
a Latest Ratio 3.51% 3
b SMA of Last 3 Years' PAT/Net Sales 3.51% 1
S. No. Actuals Value Score
6 Operating Cash Flow/Total Serviceable Debt 10
a Latest Ratio 9.23 8
Average of Last 3 Years' Operating Cash Flow/Total
b 9.23 2
Serviceable Debt
S. No. Actuals Value Score
Average Year to Year Growth in Net Sales in Last
7 26.20% 10
Two Quarters
S. No. Actuals Value Score

8 Financial Flexibility (Flexibility to raise capital) 50.00% 4

S. No. Actuals Value Score

Group Risk (Impact of subsidiary/holding
9 5.00% 6
company's borrowings as a % of TNW)
S. No. Actuals Value Score
10 Forex Risk (Likely Loss/EBID) 0.00% 10
S. No. Actuals Value Score
Gross Average DSCR (For All Loans of the next
11 10.4 10
year)
S. No. Actuals Value Score
12 Inventory Receivable Days 10
a Latest Ratio 75 8
b SMA of Last 3 Years' Ratio 79 2
S. No. Actuals Value Score
13 Aeging of Receivables 180 10
 Net % of Impact Net % of Impact
Weighted Score on Final Rating - on Final Rating -
Existing New Units
12.50 7.50% 3.13%
2.00 3.00% 1.25%
20.00 6.00% 2.50%
20.00 6.00% 2.50%
8.00 6.00% 2.50%
10.00 3.00% 1.25%
10.00 3.00% 1.25%

2.00 1.50% 0.63%

3.00 1.50% 0.63%

5.00 1.50% 0.63%

7.50 2.25% 0.94%

7.50 2.25% 0.94%

5.00 1.50% 0.63%
112.50
150.00
 Qualitative Factors
Amount as per
S. No. Details Probably of Invocation
Balance Sheet

1 Contingent Liabilities 0 0.40

Claims against disputed tax

a
liabilities
Claims against the company not
b
acknowledged as debts
Pending legal issues like suit filed
c against the company and the
financial impact
Notice issues by regulatory
d
authorities
Lock out/strike/unrest in the
e factory in the last two years and its
financial impact
Corporate guarantees given with
f or without Bank's
permission/approval
Auditor's qualifying remarks having
2 a financial impact on
financials/profitability

Accounting policies wherever

quantifiable to assess the impact
on account of the following:
3
Valuation of inventory,
capitalization, depreciation,
revaluation
4 Any other factor
Total
litative Factors
Impact as a % of
Amount assessed to be at default TNW
TNW

0 15.48 0.00%

0.00%
 Business and Industry Risk

S. No. Criteria Maximum Score

1 Market leadership 2.5

2 Industry outlook (CRMD Suggestion) 4.5
3 Technology 1.5
Access to resources/Input profile
4 (Availability of raw materials, price 2
stability, availability of substitutes)
User/Product Profile (Product of wide
5 2
acceptance/use)
Capacity Utilization and Flexibility in
6 1
Operation

7 Research and Development/Innovation 1

8 Distribution Network 0.5

Total
 Net % of Impact Net % of Impact on
Company's Score on Final Rating - Final Rating - New
Existing Units
2.5 2.50% 5.00%
4.5 4.50% 9.00%
1.5 1.50% 3.00%

2 2.00% 4.00%

2 2.00% 4.00%

1 1.00% 2.00%

1 1.00% 2.00%

0.5 0.50% 1.00%

15
 Management Risk

S. No. Criteria Maximum Score

Top Management qualification and decision-

1 5
making power
Track Record/Conduct of Account/Payment
2 5
Record
3 Experience in the industry 1
4 Strategic Initiatives 0.5
5 Length of relationship with the bank 1.5

6 Ability to achieve sales/profit projections 2

7 Adherence to the Covenants of the Sanction 5

Total
 Net % of Impact on Net % of Impact on
Company's Score Final Rating - Final Rating - New
Existing Units

5 6.25% 11.25%

5 6.25% 11.25%

1 1.25% 2.25%
0.5 0.63% 1.13%
1.5 1.88% 3.38%

2 2.50% 4.50%

5 6.25% 11.25%

20
 Group Support (Upgrade)

S. No. Criteria*

1 Group Revenues

2 External Perception of Financial Strength

3 Track Record

4 Relationship

5 Group Leverage
*All 5 conditions to be satisfied
 Group Support (Upgrade)

Requirement for 1 Notch Upgrade Requirement for 2 Notch Upgrade

>10000 Crore >25000 Crore

At least 1 Group company in BSE At least 1 Group company in BSE

Group A or NSE Top 200 OR At least 1 Sensex or NSE NIFTY (OR) At least 1
Group Company rated A- or higher by Group Company rated AA- or higher by
ECRAs recognized by RBI ECRAs recognized by RBI

No known default / debt restructuring under CDR or any group company in the
last 10 years - if any group company was under CDR in the past and has exited
- the date of exit should be at least 3 years ago with "Right to Recompense"
part of CDR Exit having been settled satisfactorily

Group companines should have had banking relationship with SBI for at least
the last 10 years with no default

Group TOL/TNW is less than 2

*All 5 conditions to be satisfied
Upgrade by (0, 1 or 2)

2
2
 Central Government Ownership (Upgrade)
S. No. Category Rating may be upgraded to
1 Maharatna SB-01 Company Type
2 Navaratna SB-02
3 Not in list No upgrade
*As published by the Department of Public Enterprises,
Not in list
Government of India website
 New Unit Risk Factor
S. No.

3
 New Unit Risk Factor
Criteria
Account Performance (Delinquency): Cumulative Number of days Limit/Drawing Power exceede
types of facilities) >60 days (OR) Maximum number of days payment of interest / Installment Overdu
loan (For TL/DL types of facilities) >60 days (OR) SMA-2 category, as defi
Account Performance (Credit Summation): Total credit summation in the past 6 months is less
balance, whichever is lower
Industry Developments (Adverse)
Downgrade

1 Notch

1 Notch
 Impact Analysis - Regular Non-Trade Model (Existing Units)

Cumulative Net % of Impact on

S. No. Item Net % of Impact on Final Rating Category
Final Rating
1 Financial Risk - TOL/Adjusted TNW 7.50% 7.50% A
2 Financial Risk - ROCE 6.00% 13.50% A
3 Financial Risk - PDBIT/Interest 6.00% 19.50% A
4 Financial Risk - PAT/Net Sales 6.00% 25.50% A
5 Management Risk - Top Management qualification and decision-making power 6.25% 31.75% A
6 Management Risk - Track Record/Conduct of Account/Payment Record 6.25% 38.00% A
7 Management Risk - Adherence to the Covenants of the Sanction 6.25% 44.25% A
8 Business and Industry Risk - Industry outlook (CRMD Suggestion) 4.50% 48.75% A
9 Financial Risk - Current Ratio 3.00% 51.75% A
10 Financial Risk - Operating Cash Flow/Total Serviceable Debt 3.00% 54.75% A
11 Financial Risk - Average Sales Growth 3.00% 57.75% A
12 Financial Risk - Gross Average DSCR (For All Loans of the next year) 2.25% 60.00% A
13 Financial Risk - Inventory Receivable Days 2.25% 62.25% B
14 Business and Industry Risk - Market leadership 2.50% 64.75% B
15 Management Risk - Ability to achieve sales/profit projections 2.50% 67.25% B
16 Financial Risk - Financial Flexibility (Flexibility to raise capital) 1.50% 68.75% B
17 Financial Risk - Group Risk (Impact of subsidiary/holding company's borrowings as a % of TNW) 1.50% 70.25% B
18 Financial Risk - Forex Risk (Likely Loss/EBID) 1.50% 71.75% B
19 Financial Risk - Aeging of Receivables 1.50% 73.25% B

20 Business and Industry Risk - Access to resources/Input profile (Availability of raw materials, price stability, availability of substitutes) 2.00% 75.25% B

21 Business and Industry Risk - User/Product Profile (Product of wide acceptance/use) 2.00% 77.25% B
22 Management Risk - Length of relationship with the bank 1.88% 79.13% B
23 Business and Industry Risk - Technology 1.50% 80.63% B
24 Management Risk - Experience in the industry 1.25% 81.88% B
25 Business and Industry Risk - Capacity Utilization and Flexibility in Operation 1.00% 82.88% B
26 Business and Industry Risk - Research and Development/Innovation 1.00% 83.88% B
27 Management Risk - Strategic Initiatives 0.63% 84.50% B
28 Business and Industry Risk - Distribution Network 0.50% 85.00% B

Legend
Disclaimer
Category Explanation

Considerable Impact: These factors together contribute to

A
roughly 60% of the net impact on final rating

The factors listed here, contributing to net percentage of impact of the final rating is not inclusive of qualitative factors, downgrades, upgrades
and external credit rating criterias. It is inclusive of Financial Risk, Business & Industry Risk and Management Risk alone. Medium to Low Impact: These factors together contribute to
B
roughly 35% of the net impact on final rating

Low Impact: These factors together contribute to roughly 5% of

C
the net impact on final rating
 Impact Analy

S. No.

1
2
3
4
5
6
7

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

Disclaimer

The factors listed here, contributing to net percentage of impact of the final rating is not inclusive of
downgrades, upgrades and external credit rating criterias. It is inclusive of Financial Risk, Business &
Management Risk alone.
 Impact Analysis - Regula

Item

Management Risk - Top Management qualification and decision-making power

Management Risk - Track Record/Conduct of Account/Payment Record
Management Risk - Adherence to the Covenants of the Sanction
Business & Industry Risk - Industry outlook (CRMD Suggestion)
Business & Industry Risk - Market leadership
Management Risk - Ability to achieve sales/profit projections
Financial Risk - TOL/Adjusted TNW
Business & Industry Risk - Access to resources/Input profile (Availability of raw materials, price sta
availability of substitutes)
Business & Industry Risk - User/Product Profile (Product of wide acceptance/use)
Management Risk - Length of relationship with the bank
Financial Risk - ROCE
Financial Risk - PDBIT/Interest
Financial Risk - PAT/Net Sales
Business & Industry Risk - Technology
Management Risk - Experience in the industry
Business & Industry Risk - Capacity Utilization and Flexibility in Operation
Business & Industry Risk - Research and Development/Innovation
Financial Risk - Current Ratio
Financial Risk - Operating Cash Flow/Total Serviceable Debt
Financial Risk - Average Sales Growth
Financial Risk - Gross Average DSCR (For All Loans of the next year)
Financial Risk - Inventory Receivable Days
Management Risk - Strategic Initiatives
Business & Industry Risk - Distribution Network
Financial Risk - Financial Flexibility (Flexibility to raise capital)
Financial Risk - Group Risk (Impact of subsidiary/holding company's borrowings as a % of TNW
Financial Risk - Forex Risk (Likely Loss/EBID)
Financial Risk - Aeging of Receivables

Disclaimer

The factors listed here, contributing to net percentage of impact of the final rating is not inclusive of qualitative
downgrades, upgrades and external credit rating criterias. It is inclusive of Financial Risk, Business & Industry R
Management Risk alone.
ar Non-Trade Model (New Units)

Net % of Impact on Final Rating Cumulative Net % of Impact on Final Rating

11.25% 11.25%
11.25% 22.50%
11.25% 33.75%
9.00% 42.75%
5.00% 47.75%
4.50% 52.25%
3.13% 55.38%

4.00% 59.38%

4.00% 63.38%
3.38% 66.75%
2.50% 69.25%
2.50% 71.75%
2.50% 74.25%
3.00% 77.25%
2.25% 79.50%
2.00% 81.50%
2.00% 83.50%
1.25% 84.75%
1.25% 86.00%
1.25% 87.25%
0.94% 88.19%
0.94% 89.13%
1.13% 90.25%
1.00% 91.25%
0.63% 91.88%
0.63% 92.50%
0.63% 93.13%
0.63% 93.75%

Legend

Category Explanation
Considerable Impact: These factors together contribute to rou
A
of the net impact on final rating
Medium to Low Impact: These factors together contribute to
B
35% of the net impact on final rating
Low Impact: These factors together contribute to roughly 5% o
C
impact on final rating
 Category

A
A
A
A
A
A
A

B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B

ion
gether contribute to roughly 60%
n final rating
rs together contribute to roughly
on final rating
ntribute to roughly 5% of the net
l rating