CHAPTER-1

Introduction to CRISIL

A credit rating is a measure used by creditors to determine how much

they can trust a certain borrower whether the borrower is an individual,
a corporation, or a country. The rating is derived using past financial
data or t5he borrowers credit history.

CRISIL is a global analytical company driven by its mission of making markets function
better.It is India's foremost provider of ratings, data and research, analytics and solutions,
with a strong track record of growth and innovation. CRISIL delivers independent opinions,
actionable insights, policy advisory and efficient solutions to over 100,000 customers across
86 industries. CRISIL's businesses operate from 8 countries including USA, Argentina,
Poland, UK, India, China, Hong Kong and Singapore.At the core of CRISIL's credibility,
built up assiduously over the years, are its values of integrity, excellence, accountability,
teamwork and respect for all.CRISIL is majority owned by S&P Global Inc., a leading
provider of transparent and independent ratings, benchmarks, analytics and data to the capital
and commodity markets worldwide.

WHO WE SERVE: CRISIL's clientele range the entire spectrum of financial service
players, right from the leading commercial and investment banks, insurance companies,
corporations, consulting firms, private equity players and asset management companies
globally to small companies and investors.CRISIL also works with governments and policy-
makers in India and other emerging markets in the infrastructure domain.

HOW WE ADD VALUE: CRISIL empowers its customers and the markets at large. Lenders
and borrowers, issuers and investors, regulators, and market intermediaries make better-
informed investment and business decisions by using our services.CRISIL's offerings allow
markets and market participants to become more transparent and efficient - by mitigating and
managing risk, taking pricing decisions, generating more revenue, reducing time to market
and enhancingreturns.By helping shape public policy on infrastructure in emerging markets,
CRISIL helps catalyse economic growth and development in these countries.

DEFINITION

An independent company that evaluates the financial condition of issuer of debt instruments
and then rating that reflects its assessment of the issuers ability to make the debt payments.
Potential investors, customers, employees, and business partners rely upon the data and
objective analysis of credit rating agencies in determining the overall strength and stability of
a company.

MEANING

CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in
India in 1987. With a tradition of independence, analytical rigour and innovation, we have a
leadership position. We are a full-service rating agency. We rate the entire range of debt
instruments: bank loans, certificates of deposit, commercial paper, non-convertible
debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed
securities, perpetual bonds, and partial guarantees.

The ratings assigned are generally regarded in the investment community as an objective
evaluation of the probability that a borrower will default on a given security issue. Default
occurs whenever a security issuer is late in making one or more payments that it is legally
obligated to make. In the case of a bond, when any interest or principal payment falls due
and is not made on time, the bond is legally in default.

While many defaulted bonds ultimately resume the payment of principal and interest,
others never do, and the issuing company winds up in bankruptcy proceedings. In most
instances, holders of bonds issued by a bankrupt company receive only a part amount on
his investments, invested, once the company's assets are sold at auction. Thus, the investor
who holds title to bankrupt bonds typically loses both principal and interest. It is no
wonder, then, that security ratings are so closely followed byinvestors. In fact, many
investors accept the ratings assigned by credit agencies as a substitute for their own
investigation of a security's investment quality
HISTORY

Since its inception CRISIL has constantly redefined industry standards through
best practices and innovations.We share with you, key milestones from our
journey...
YEARS MILESTONES
1987 CRISIL was incorporated
Pradip Shah was Managing Director
1987-88 Commences the rating of companies
1991-92 Provides technical assistance and training to Rating Agency Berhard and
MALLOT, the Israel securities rating company ltd.
1993-94 Makes public offering of 20,00,000 equity shares or Rs.10 each at a
premium of Rs.40 per share. The offer is oversubscribed by 2.47 times
1994-95 Mr. R Ravimohan takes over as Managing Director
Sets up the Advisory Service Group
1995-96 Forges a strategic alliance with Standard & Poors Rating Group

1996-97 Standard & Poors acquires 9.68% of shareholding in CRISIL

1997-98 Sets up IISL, a Joint Venture between CRISIL and National Stock
Exchange for undertaking index business and related activities.
1998-99 Develops a framework for rating debt obligations supported by credit
enhancements based on overseas guarantees called foreign structured
obligations.
Launches the Risk Assessment Model (RAM)
Develops a web presence, launches the official website
1999-2000 Acquires the business of Information Products and research services
(India) Pvt. Ltd. Along with its brand INFAC
2001-02 Launches CRISIL Market Wire, a realtime financial news services
Launches Mutual fund Composite Performance Rankings (CRISIL
CPRs), Fund Risk Analyst Model and CRISIL Mutual Fund Portfolio
Tracker
2003-04 Change of the name of the company from the Credit Rating Information
Services of India Limited to CRISIL
Rates the first CDO transaction of working capital facilities in the Asia
Pacific
AMFI mandates CRISIL to provide daily fund indices as benchmarking
standards for the mutual fund industry
2004-05 Standard & Poors acquires 3,120,948 equity shares of CRISIL from
CRISIL shareholders through an Open offer taking S&P holding in
Vision

To be the foremost provider of ratings, data and research, analytics and solutions to our
clients, investors, policy makers and other market participants.

Mission

To make markets function better by providing independent opinions, actionable insights and
efficient solutions.

Values

Integrity: We are independent in our thinking and act with unimpeachable

integrity at all times. Our opinions and analyses are credible, unbiased and not
bound by any company, government or market.

Excellence: We continuously innovate to deliver actionable analyses and solutions

that help customers make informed business decisions and mitigate risk. We are
committed to the highest quality standards, while robust analytical rigour ensures that
our insights are objective, distinct, consistent and reliable.

Accountability: We are committed to what we do, we stand by our opinions and

analyses, and we assume complete responsibility and ownership of our decisions and
actions.

Teamwork: We collaborate with, and incorporate the expertise and insights of, each
team member to enhance the value of our deliverables to customers, investors and
other market participants.

Respect: We treat everyone with mutual trust and respect, be they colleagues,
customers or other stakeholders. We embrace and cherish the inclusivity and diversity
of our organisation.
REWARDS AND RECOGNITIONS

2014

Roopa Kudva, MD & CEO, CRISIL featured in Business Today magazines 'The
Most Powerful Women in Indian Business 2014' list
Roopa Kudva, MD & CEO, CRISIL conferred the 'India Today Woman in the
Corporate World Award' at the India Today Woman Summit & Awards 2014
Dinesh Sharma, Chief Financial Officer (CFO) of CRISIL, won the 'Winning
Edge' in Strategy award at CFO India magazine's fourth Annual 'CFO100 Roll of
Honour'

2013

Saurabh Nigam wins the prestigious Next100 Future CIO Award

Ramnath Iyer wins the Dataquest Editor's Choice CIO Excellence Award 2013
CRISIL Wins the 2013 CIO 100 Information Mastermind Award
CRISILConnect wins ABCI Award two years in a row!
Roopa Kudva features in Entrepreneur magazine's 'Top 50 CEOs' ranking
Roopa Kudva features among India Inc's 'Most Powerful CEOs 2013' by The
Economic Times Corporate Dossier
Dinesh Sharma, CFO, CRISIL bags the 'Winning Edge' in Innovation award -
Revenues under 1000 crore at CFO India magazine's third Annual CFO100 Roll
of Honour
CRISIL receives award for Excellence in Financial Reporting for 2011

CHAPTER-2
PROFILE OF THE COMPANY

CRISIL is Indias Leading Ratings, Research, Risk and Policy Advisor Company.
CRISIL offers domestic and international customers a unique combination of local
insights and global perspectives, delevering independent information, opinions and
solutions that help them make better informed business and investment decisions,
improve the efficient Locations.

CRISIL Headquarters Address

Crisil House (Pinnacle chambers) 121/122 Andheri Kurla Road Andheri (east)
Mumbai, Maharashtra, 400093

India

Phone:- 2256913001

Fax:- 2256913000

Headquarter Bombay Area, India

s
Industry Financial Srevices

Type Public Company

Status Operating

Company 2,000 employees

Size
Revenue 2,873 mil (INR) (65%)

Founded 1987

Website www.crisil.com

Parent Standards & poors

Company
Subcidiaries Irevna

CHAPTER-3

BUSINESS & SERVICES OF THE COMPANY

CRISIL is Indias Leading Ratings, Fundamental News, Risk and Policy Advisor
Company. CRISIL helps clients manage and mitigate business and financial risk, enables
markets to function better through benchmarks and best practices and provides workable
inputs in shaping public policy. CRISILs services and products span the entire value
chain starting from data collection and management to providing options and integrated
solutions. these products and services are backed by7 highest standards of integrity,
independence and analyticalrigor, making CRISIL the most credible provider of theese
services in the market. CRISILs clients depend upon it to constantly deliver objective
opinions and the most workable solutions. Through a sustained theme of innovation and
thought leadership, CRISIL has led the markets with new thoughts, new analytical
frameworks and new approaches, placing it in its leading position in the Indian market place.
to all participants in the financial markets. CRISIL Infrastructure Advisory Group provides
workable policy and transaction level solution to Central and State governments, public
sector and private sector entities, that help them make the difference. CRISIL Investment and
Risk Management Group (part of CRISILs advisory services) and Global Data Services India
Ltd (GDSIL), both CRISIL subsidiaries. CRISIL Ltd provides business knowledge through
research on industries, companies and the economy, GDSIL provides analytical data base to
support CRISIL as well as external clients in there research and analysis. CRISILs news
services (CRISIL Market wire CMW) are Indias leading provider of real time news and
analysis on India debt markets.

3.A CRISILSME RATING SERVICES

CRISIL commenced its SME (small & medium enterprises) rating services in April 2005.
CRISIL has two products for rating small scale industries SSIs and SMEs viz. NSIC-CRISIL
performance and credit rating for SSI and SME rating respectively CRISIL rates SSI and
SMEs on two separate rating scales as given below:

A. NSIC-CRISIL performance and credit rating for SSIs

CRISIL signed an MOU with NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

to rate SSIs in India at a subsidized cost.
An NSIC CRISIL RATING reflects CRISILs opinion on companys performance
capability and financial strength. Rating is assigned on following rating scale.

NSIC rating scale TABLE NO .1

Financial Strength

High Moderate Low

Performance Highest SE 1A SE 1B SE 1C
Capability
High SE 2A SE 2B SE 2C

Moderate SE 3A SE 3B SE 3C

Weak SE 4A SE 4B SE 4C

Poor SE 5A SE 5B SE 5C

For Eg. A Company with High Performance Capability and High Financial Strength will be
Rated SE2A, while with Weak Performance Capability and Low Financial Strength will be
Rated SE4C

B. SME RATING

CRISIL SME Ratings will reflect the level of creditworthiness of an SME, adjudged in
relation to other SMEs. CRISIL SME Ratings will be assigned with the following rating
definition.
"The rating indicates that the level of creditworthiness of an SME, adjudged in relation to
other SMEs is " (as per table below)

CRISIL SME Rating Definition

SME 1 Highest

SME 2 High

SME 3 Above Average

SME 4 Average

SME 5 Below Average

SME 6 Inadequate

SME 7 Poor

SME 8 Default

3.B CRISIL Rating Symbols For Long Term Ratings

AAA Instruments rated 'AAA' are judged to offer the highest degree of
(Triple A) Highest safety with regard to timely payment of financial obligations. Any
Safety adverse changes in circumstances are most unlikely to affect the
payments on the instrument
AA Instruments rated 'AA' are judged to offer a high degree of safety
(Double A) High with regard to timely payment of financial obligations. They
Safety differ only marginally in safety from `AAA' issues.
A Instruments rated 'A' are judged to offer an adequate degree of
Adequate Safety safety with regard to timely payment of financial obligations.
However, changes in circumstances can adversely affect such
issues more than those in the higher rating categories.
BBB Instruments rated 'BBB' are judged to offer moderate safety with
(Triple B) Moderate regard to timely payment of financial obligations for the present;
Safety however, changing circumstances are more likely to lead to a
weakened capacity to pay interest and repay principal than for
instruments in higher rating categories.
BB Instruments rated 'BB' are judged to carry inadequate safety with
(Double B) regard to timely payment of financial obligations; they are less
Inadequate Safety likely to default in the immediate future than instruments in lower
rating categories, but an adverse change in circumstances could
lead to inadequate capacity to make payment on financial
obligations.
B Instruments rated 'B' are judged to have high likelihood of
High Risk default; while currently financial obligations are met, adverse
business or economic conditions would lead to lack of ability or
willingness to pay interest or principal.
C Instruments rated 'C' are judged to have factors present that make
Substantial Risk them vulnerable to default; timely payment of financial
obligations is possible only if favourable circumstances continue.
D Instruments rated 'D' are in default or are expected to default on
Default scheduled payment dates.
NM Instruments rated 'NM' have factors present in them, which render
Not Meaningful the outstanding rating meaningless. These include reorganisation
or liquidation of the issuer, the obligation being under dispute in a
court of law or before a statutory authority etc.
ABOUT- NSIC

National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company, since its
establishment in 1955, has been working to fulfill its mission of promoting, aiding and
fostering the growth of small scale industries and industry related small scale
services/business enterprises in the country. Over a period of five decades of transition,
growth and development, NSIC has proved its strength within the country and abroad by
promoting modernization, up gradation of technology, quality consciousness, strengthening
linkages with large medium enterprises and enhancing exports - projects and products from
small industries. NSIC operates through 9 Zonal Offices, 33 Branch Offices, 14 Sub Offices,
10 NSIC Business Development Extension Offices, 5 Technical services Centers, 3 Extension
Centers and 2 Software Technology Parks supported by a team of over 500 professionals
spread across the country. To manage operations in African countries, NSIC operates from its
office in Johannesburg. NSIC carries forward its mission to assist small enterprises with a set
of specially tailored schemes designed to put them in a competitive and advantageous
position. The schemes comprise of facilitating marketing support, credit support, technology
support and other support service. NSIC carries forward its mission to assist small enterprises
with a set of specially tailored schemes designed to put them in a competitive and
advantageous position. The schemes comprise of facilitating marketing support, credit
support, technology support and other support services.

RATING FEES

RATING FEES FOR CRISIL SME RATING

Companies under Operations

Turnover Turnover Turnover Tunover (Rs. Turnover (Rs.

(Rs. (Rs. Crore) Crore)
(Rs .
Crore) Crore)
Crore) 50-75 >75
10-25 25-50
< 10

Rating fees 60,000 65,000

(Rs.)
70,000 85,000 110,000
 Service tax 6,180 6,695 7,210

8,755 11,330

Total fees 66,180 71,695 77,210

(Rs.)
93,755 121,330

*concessional fees are applicable for CRISILs partner MOU bank customers and industry
association members. The fees mentioned above are inclusive of all expenses CRISIL will
occur in connection with the exercise.

CRISIL has set up a dedicated team of specialists in SME rating, and designed separate
rating scale for rating SMEs and SSIs (entities with valid SSI certificates). CRISILs
SME Rating has a team of 25 professionals and a company wide network to provide the
rating services to SMEs and SSIs in any part of the country.

In association with NSIC, CRISIL is now rating small scale industries (SSI) on special
rating scale. NSIC provides subsidy for rating of SSIs. CRISIL has already rated 350
SMEs SSIs on the NSIC-CRISIL and the SME rating scale. More than 100
additional mandates are under the process of execution. CRISIL has conducted studies
on 19 SME clusters across 8 industries. CRISILs SME risk assessment model installed
in 8 reputed public and private sector banks. CRISIL provided its expertise in the SME
sector for emerging India award 2006, organized by ICICI Banks and CNBC. Of 35000
entries received for the awards, best SMEs were identified across 10 categories.

Besides marketing the rating services directly to the SMEs through one-to-one contact, other
alternative approaches were adopted to develop the business. To address the large number of
SMEs (including SSIs) in India, CRISIL adopted an aggregator approach wherein SMEs
could be accessed in groups through an aggregator like a bank, an industry association, or a
large corporate with several SME dealers or vendors Since bank inIndia have large SME
portfolios as part of their priority sector business, and SMEs depends substantially on banks
for their fund requirements, CRISIL decided to enter into national level tie-ups with banks to
provide rating services to their
SME borrowers.

CRISIL SME Ratings

Partner Banks

CRISIL has partnered with 26

banks and two financial
organisations to extend the
special concessional rating fees to
its customers.

The following partner banks

and financial organisations are giving interest rate benefits to the customers rated by
CRISIL.

1. National Small Industries Corporation

2. Bank of India
3. Canara Bank
4. Central Bank of India
5. Corporation Bank
6. Punjab National Bank
7. Syndicate Bank
8. UCO Bank
9. Union Bank of India
10. United Bank of India
11. Vijaya Bank
12. Kerala Financial Corporation

In addition to the above banks, CRISIL has partnered with the following 16 banks to give
special concessional fees to rate their customers.

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of Maharashtra
5. Dena Bank
 6. The Federal Bank Limited
7. HDFC Bank Limited
8. Indian Bank
9. Indian Overseas Bank
10. State Bank of Bikaner & Jaipur
11. State Bank of Hyderabad
12. State Bank of India
13. State Bank of Indore
14. State Bank of Mysore
15. State Bank of Saurashtra
16. State Bank of Travancore

It is in discussion with other banks to enter into similar tie-ups. CRISIL rating provide banks
a ready reliable third party credit opinion and facilitate lending decision by helping fix
appropriate quantum of loans, rate of interest, margin and security. As per these MOUs,
CRISIL charges fees at concessional rates (as low as Rs. 7456 for small companies) to the
banks, customers and the bank in turn offer favorable terms to entities with high CRISIL
Ratings. UCO bank, United and Union bank have already announced reduced interest rates
for highly rated entities. Though SMEs in India are dispersed across the country. There are
certain pockets with concentrations of SMEs. These are called SMEs clusters. The SMEs in
cluster or otherwise have organized themselves into industry associations which work as a
platform for the welfare of members.

CRISIL has reached an understanding with several industry associations across the country to
provide rating service to their members at attractive terms. Similarly, large companies in
India deals with several SMEs in their supply chain as dealers for selling finished goods, and
the vendors for procuring raw material or sub-assemblies. CRISIL has signed agreements
with such companies for grading their deals or rating their vendors. CRISIL, with its
reliability, width, and depth of experience in rating services, made a world of difference to the
corporate sector when it is pioneered the concept of rating in India. CRISIL believes it will
make the same difference to the SME sector with its SME sector rating.

3.C An overview of the SME\SSI sector in India

In the India market, the common concept was that of small scale industry (SSI); the definition
of a medium enterprises is of more recent origin. The government of India has historically
tracked the profile and growth of the SME sector in terms of SSIs. SSIs are a vibrant and
important sector of the Indian economy. They make significant contribution to the annual
GDP, exports and employment. In an environment of sustained high economic growth,
economic reforms and economic liberalization, the role and the importance of the SSI sector
will be even more significant in the future. The small scale sector has grown rapidly over the
years. Currently there are about 118 SSIs in India. The sector accounts for around 95 percent
of the industrial units in the country, contributing 40% of the manufacturing sector output and
approximately 35% of the nation exports. The total value of production by SSI units for the
year 2004-2005 was approximately Rs. 418300 crore. In addition to the contribution of 40%
towards direct export, the SSI contributes around 15% to export in directly.
It has been estimated that an investment of Rs. 10 lakh in fixed assets in the small scale sector
reduces Rs. 46.2 lakh worth of goods or services.
SSI sector in India creates the largest employment opportunities for the Indian populace, next
only to agriculture. It has been estimated that investment of Rs. 1 lakh in fixed assets in the
small scale sector generates employment for four persons. Overall, the sector currently
employs around 2.83 crore people.

Small Scale Industries

As defined by the ministry of SSI, government of India, the policy making and promoting
body for SSIs in India, an SSI is defined as:

An industrial undertaking in which the investment is fixed assets in plant and machinery,
whether held on ownership terms, on lease, or on high purchase, does not exceed Rs. 1 crore,
subject to the condition that the unit is not owned or controlled by, or a subsidiary of, any
other industrial undertaking.

SSI units mostly belong to the manufacturing sector. However some service enterprises such
as software development enterprises, cold storage units etc. Have also been included under
the SSI umbrella. Previously the ministry of SSI also defined small scale services and
business enterprises (SSSBEs) as enterprises having investment equipment excluding
investment in land and building up to Rs.10 lakh. Consideration the growing importance of
the service sector in the countrys economy, the SMED Act defined the small enterprises in
the service sector as one having investment in equipment(excluding investment in land and
building) up to RS. 2 crore.SSSBEs include enterprises working in close association with
manufacturing enterprises like CAD\CAM blueprinting, and industrial consulting etc. Small
enterprises both manufacturing and service sector are eligible for receiving subsidy in the
rating fees norms national small industries corporation limited (NSIC) As per the new SMED
(small and medium enterprises development) act the limited for investment in plant and
machinery in small enterprises has been increased to rs. 5 crore. the new act is expected to
become operational with effect from oct,2,2006. Consideration the growing importance of the
service sector in the countrys economy, the SMED Act defined the small enterprises in the
service sector as one having investment in equipment(excluding investment in land and
building) up to RS. 2
Small and Medium Enterprises

The SMED Act defines a Medium Enterprises as one with investment in the plant machinery
in excess of the SSI limit and up to Rs.10 crore. Before this there was no commonly accepted
definition of medium enterprises.

The SMED Act defines a medium enterprises in the service sector as one having investment
in equipment (in excluding investment in land and building) up to Rs.5 crore.
Medium enterprises, which are relatively
bigger in size, have different credit needs. Looking at this, CRISIL has developed a
separate scale for rating these enterprises (an 8 point
scale as given in the brochure for SME rating).
For rating the medium enterprises, CRISIL goes by
the definition of such enterprises by the banks.

Tabular representation of ceiling in

investment for enterprises in
manufacturing and service sector as per
the new SMED Act:

TABLE NO .3

Manufacturing enterprises Services Enterprises

Investment in Plant and Machinery Investment in Equipment

Micro Up to Rs.25 lakh Up to Rs.10 lakh

Small Above Rs. Lakh up to Rs.5 crore Above Rs.10 lakh up to

Rs.2crore

Medium Above Rs.5 crore up to Rs.10 crore Above Rs.2 crore up to

Rs.5crore
 CHAPTER-4
BENEFITS OF SME RATING

1. FASTER AND EASIER AVAILABILITY OF LOANS -:

Banks appreciate the independence and analysis involved in CRISILs rating
exercise. More than 31 banks have entered into a formal agreement with CRISIL
SME ratings, under which, they extend favorable terms and conditions, to CRISIL
rated units, including lower rate of interest.

2. INCREASED CREDIBILITY WITH BANKERS, CUSTOMERS AND BUSINESS

ASSOCIATES -:
An SME rating from CRISIL, increases the credibility of the rated unit, in domestic
and international markets, by providing the bank, customers, and business,
associates with credible information about the company. This increases their
confidence in the unit and helps in increasing business and building better
relationships.

3. DETAILED RATING REPORT -:

Each CRISIL rated SME receives a rating report which provides comprehensive
details about the rated unit, its functioning, as well as the organizations strengths
and weaknesses. This rating report can be used by the unit in dissemination of
credible information about their company to a wide variety of business associates,
including, collaborators, joint venture partners and other market participants.
Besides, the rating report also serves as a guide to focus on areas of improvement
and enables the SME to benchmark against competition.

4. INCREASED PUBLICITY -:
CRISIL SME ratings are listed on CRISILs website and on CRISILs monthly
publications, the CRISIL SME CONNECT. This serves as a good source of
publicity for the rated entity and further enhances the credibility of the unit, a wide
variety of banks, financial institutions and, foreign counterparties use the CRISIL
PUBLICATION and website, to identify and research companies in greater detail.
5. SUPPORT FOR EXPORT INITIATIVES -:
For exporters, CRISILs International Linkage offers an additional advantage:-
STANDARD & POORs, a globally respected rated agency, is the majority
shareholder in CRISIL, therefore, a CRISIL rating will help establish the credentials
with international customers.

6. A TOOL FOR SELF IMPROVEMENT -:

Along with its ratings, CRISIL provides detailed analytical reports on the Strengths
and Weaknesses of rated entities. Based on CRISIL reports, one can take steps to
strengthen their operations and become more efficient. Each repots provides
reliable and independent feedback from customers, suppliers and, banks.

7. AFFORDABLE -:
CRISIL SME rating services, while being highly credible, are also very much
affordable. CRISIL offers an attractive concession in the rating fee for small
enterprises. Also, NSIC Ltd., which is a corporation under the ministry of MSME,
GOVT, OF INDIA, provides 75% subsidy in rating fee for small enterprises. Thus,
the rating fee payable by the small enterprises ranges from Rs.7456 to Rs.13236. for
enterprises not registered as small enterprises, the fee is higher, as the subsidy is not
available from NSIC. CRISIL, with its reliability, width, and its depth of experience
in rating services made a world of difference to the corporate sector, when it
pioneered the concept of rating in India. CRISIL believes, it will make same
difference to the SME Sector, with its SME sector ratings.

How CRISIL SME/SSI ratings can be useful Banks

Creates a strong platform for well rated SMEs to obtain CRISIL ratings under Basel II
over a period of time.
An independent assessment of the SME portfolio will help in improving asset quality.
Client retention : Bank will be able to retain its good customers by providing interest
rate concessions to highly rated entities.
Ratings could be used for all green-field projects where CRISILs appraisal skills will
be useful in evaluating the unique project risks.
 CHAPTER-5
MILESTONES OF THE COMPANY

MILESTONES OF THE COMPANY

CRISIL is 23. At this important milestone, we reflect on our journey thus far and look into
the horizon beyond. We began our journey as India's first rating agency. Today, we are a
diversified global analytical platform with leadership positions in the ratings, research and
advisory domains. Along the way, our growth has been closely intertwined with India's
development milestones. We started in 1987 as a credit rating agency , at a time when lending
rates in India were fixed, and there was, therefore, little demand for credit ratings. We firmly
established ourselves as the country's leading rating agency, respected for our fiercely
independent, highly credible, and analytically rigorous views. Shouldering the mantle of a
pioneer and a market leader, we facilitated the development of India's credit market and built
investor confidence in our risk assessment capabilities.

India's transformation into a market-led economy greatly increased its need for capital, and
required extensive reforms and institution building. Accordingly, we diversified into the
infrastructure advisory and business research domains, and quickly built up a reputation for
independent, reliable and incisive information, research, models and advisory services.
Today, our services are key inputs in informed decision-making and the shaping of public
policy in India. With increasing globalization, we also focused on making our income streams
more global. We acquired Irevna, a pioneer in the investment research outsourcing space;
Irevna has since been voted No.1 in high-end investment research and analytics outsourcing
by the US-based Brown and Wilson Group two years in a row in 2006 and 2007. We have a
thriving business that meets increasing global demand for better understanding of the Indian
business environment, through the services offered by our research and advisory groups.
The macro environment trends, both in India and globally, present myriad business
opportunities. At a youthful 20, we are ideally positioned to service the needs of our
expanding client base by maintaining our focus on our mission:
Making markets function better.
Helping clients manage and mitigate business and financial risks.
Shaping public policy.
CHAPTER-6
PRODUCT OF THE COMPANY

Ratings:
CRISIL Ratings
CRISIL Ratings is the only ratings agency in India to operate on the basis of sectoral
specialization. It reflects our sharpness of analysis, the responsiveness of the process and the
large-scale dissemination of opinion.
CRISIL Ratings plays a leading role in the development of the debt markets in India.
The Rating Criteria & Product Development Centre, responsible for policy research, new
product development and ratings' quality assurance, has developed new ratings
methodologies for debt instruments and innovative structures across sectors.
 CRISIL Ratings provides technical know-how to clients worldwide. We have helped
set up ratings agencies in Malaysia (RAM), Israel (MAALOT) and in the Caribbean.