Upload
spunkyrohit1
View
235
Download
0
Embed Size (px)
Citation preview
8/3/2019 MSME - Rating
1/24
MSME Rating
Performance and Credit Rating
Presentation by
Shailesh Waghmare
Head Marketing - SME
8/3/2019 MSME - Rating
2/24
About ONICRA
Independent corporate body incorporated in 1993, an established player in Performance
and Credit Rating in Indian market
The only organized platform in India for individual credit risk assessment / management
and Information exchange
Acknowledged as pioneers of Individual Credit Rating in the Economic Survey of
India 1993-94issued by Ministry of Finance, Government of India
A Government accredited Rating Agency for MSMEs, by Ministry of MSME through
National Small Industries Corporation (NSIC) and recognized by Indian Banks
Association (IBA), for Financial and Performance Rating
National Skills Registry (NSR) Certified Employment Background Screening agency
8/3/2019 MSME - Rating
3/24
8/3/2019 MSME - Rating
4/24
Snapshot
Technology Services Network
8/3/2019 MSME - Rating
5/24
Business to Business Services
B2B
Delivering rating reports
of individuals to our
clients in Banking,
Insurance and Telecom
segments, helping them
in taking credit decisions
Comprehensive Credit &
Performance Rating Reportto MSME units have helped
them in increasing their
Acceptability & Credibility
with Vendors, Suppliers,
Banks & Financial
Institutions, etc.
Background Checks
(including Identity,
Professional,
Educational, Criminal,
Health or Reference
Checks) have helped our
clients to reduce the risk
of employee frauds
Financial & PerformanceRating reports help our
clients to Indentify the
right channel partners
8/3/2019 MSME - Rating
6/24
ONICRAs Experience
The following factors have differentiated Onicra from the rest in the Industry:
Coverage:
We have a nationwide network of 150 inter connected Offices, covering over 400
Locations.
Synergy:
Onicra officials across India have worked in close co-ordination with the Large
Corporates Zonal/Regional Offices and Branches to reach out to the Vendors.
Activity Level:
We have actively conducted Vendor Cluster Meetings, Seminars, Awareness
Programs, etc where existing and prospective Vendors have been educated on the
benefits and requirement of Rating.
Focus:
Our keen interest on Vendor Ratings as a Business Vertical within the Company has
brought in innovativeness of strategy and speed of action.
8/3/2019 MSME - Rating
7/24
ONICRA Advantages
Rated over 6000 Associates / Vendors / MSME Units
Rated among top 2 agencies for MSME Rating in India
One of the fastest growing Credit Rating agency with approx 100% growth YOY
MoU with 24 leading Banks and Financial Institutions including PSU Banks,
State Financial Corporations, Regional Banks, Rural / Gramin Banks, etc.
Empanelled with Navel Dock Yard, Mumbai
Lowest Turn Around Time (TAT) in the industry
Nationwide infrastructure to meet the ever-growing needs of our customers, covering
400 locations
8/3/2019 MSME - Rating
8/24
Working Relationship with Banks & FIs
1. Bank of Rajasthan
2. Bank of India
3. Punjab National Bank
4. Allahabad Bank
5. United Bank of India
6. Union Bank of India
7. Central Bank of India
8. State Bank of Mysore
9. State Bank of Hyderabad
10. State Bank of Travancore
11. Tamilnad Mercantile Bank
12. Punjab & Sindh Bank
13. Andhra Bank
14. Karur Vysya Bank
15. Oriental Bank of Commerce
16. UCO Bank
17. Andhra Pradesh State Financial Corporation
18. Karnataka State Finance Corporation
19. Jammu & Kashmir Bank
20. IDBI Bank
21. Citizen Cooperative Bank
22. Pachim Banga Gramin Bank
23. Orissa State Financial Corporation*
24. Assam Gramin Vikas Bank
8/3/2019 MSME - Rating
9/24
MSME
Rating
Services
NSICNSIC ONICRAONICRA
PERFORMANCE & CREDIT RATING FOR Micro &PERFORMANCE & CREDIT RATING FOR Micro &
Small EnterprisesSmall Enterprises
8/3/2019 MSME - Rating
10/24
8/3/2019 MSME - Rating
11/24
Introduction
NSICNSIC ONICRAONICRA PerformancePerformance && CreditCredit RatingRating SchemeScheme:: Comprehensive Credit &Performance Rating Report to MSME units have helped them in increasing their Acceptability
& Credibility with Vendors, Suppliers, Banks & Financial Institutions, etc.
Understanding the urgency faced by the MSME units, Ministry of MSME, Government of India
through National Small Industries Corporation (NSIC) has signed a Memorandum of
Understanding with us to provide Performance and Credit Rating services. The scheme was
launched by the Honorable Finance Minister and is approved by Indian Banks Association(IBA). The Ministry of MSME is offering a subsidy of 75% on the ONICRA Rating Fee.
Scheme Features:Scheme Features:
Turnover based Fee Structure Turnover based Fee Structure
Rating Approved by
Indian Banks Association (IBA)Scheme implemented through
National Small Industries Corporation (NSIC)
8/3/2019 MSME - Rating
12/24
Benefits of ONICRA Rating to MSMEs
Adds credibility to the status of the MSME
Helps to deal with large companies
Motivation to adopt good governance practices
Help in Marketing and serve as first point to generate interest among
potential trading partners
Tool for self correction & self improvement
Increases credit acceptability with banks and financial institutions
Concession in interest rate on NSICs Raw Material Assistance / BG
Scheme
Creates confidence among buyers and suppliers by establishing credibility &
goodwill
8/3/2019 MSME - Rating
13/24
Value Proposition for MSMEs
Benefitsof NSIC
OnicraRating
CreatingAwarenes
s
Confidence
amongstBuyers &Suppliers
RiskManagement
IncreasedProductivit
y
Acceptabili
ty withBanks &Financial
Institutions
Enhancesacceptability withbanks, lenders
and financial
institutions. This
gives fast access
to credit at low
interest rates.
Highlights strengths
and weaknesses of the
existing operations
and recommends
corrective measures.
Awareness is created about the
strengths, weaknesses, opportunitiesand threats. This helps in identifying
areas where improvements are needed.
Credibility and
goodwill isestablished while
undertaking
business
transactions.
Highlights parameters
measuring operational,
financial, business and
management risks.
8/3/2019 MSME - Rating
14/24
Value Proposition Banks & FIs
Second Opinion - Third Party unbiased opinion
An additional input to make lending decisions
Comfort level for a prudent decision-making
Reduction in information asymmetry in the MSME sector
Warning signals through periodic rating review
Focus can be driven towards exposure on low risk accounts
Cost and time effective method of processing
8/3/2019 MSME - Rating
15/24
Rating Scale
Performance
Capability
Financial Strength
High Moderate Low
Highest SE 1A SE 1B SE 1C
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
8/3/2019 MSME - Rating
16/24
Rating Process
Pre Site Visit
Submission of list of the required documents to the applicant for the rating process
Agreement for a suitable date for the site visit
Site Visit
Meeting with the applicant along with the structured questionnaire (this questionnaire includes thebasic details of the applicant along with their family background, existing business, risk takingcapacity, synergy in the business)
Feedback from existing Bankers through Bankers questionnaire
Factory inspection
Assessment of the assets employed, working conditions, process flows, etc.
Collection of documents, not yet collected
Post Site Visit Reference Check
Customer Satisfaction verification
Supplier Feedback
Financial Analysis
Submission of Analysis to Rating Committee
Approval of Analysis & Assignment of Rating
Generation of Final Report
8/3/2019 MSME - Rating
17/24
Detailed Process Flow
Request for
Rating
Financials +
Other info
Pre-Analysis Formalize
Assignment
Login with
NSIC
Rating Appealed Publish Rating Institution advised on
draft report
Draft Report & Rating
Proposal
Rating Committee
Industry Data
Additional
Information
In depth
Analysis
Meet
Institution &
Site Visit
Detail
Questionnaire
8/3/2019 MSME - Rating
18/24
Documents Required
SSI Registration Certificate
Partnership Deed or Memorandum & Articles of Association
List of all directors or partners with their age, address, net worth, income tax return, qualification and
experience
Copy of audited accounts for the last three years
Authority letter to sign the application
Nature of advance & security provided, in relation to the loan/credit facility availed from banks
In case of new project/expansion, Project Report containing a brief project profile, cost of project,
sources of finance
Brief about products manufactured, end users, marketing tie-up & orders in hand
Details of subsidies & tax concessions available
Quality certificates & export awards won
Membership of any associations
Details about factories and its ownership
Any other information that would enable us to understand your business better
8/3/2019 MSME - Rating
19/24
MSME Rating Report
Status of
the Unit
3600
Analysis
8/3/2019 MSME - Rating
20/24
8/3/2019 MSME - Rating
21/24
Impact of Rating on MSME Units
In a survey done on impact of credit rating on companies, there was data available to showthat rated units had:
Percentage
67
45
60
24
10
23 2216
Survey Highlights Impact of Ratings on MSME Units
Higher Customer Recognition
Increased Customer Queries
Increase in Sales
Increased Exports
Better Interest Rates
Enhanced Credit Limits
Improvement in Quality
Increased Capacity Utilization
8/3/2019 MSME - Rating
22/24
8/3/2019 MSME - Rating
23/24
Customers Feedback
The Credit Rating of our operational & financial performance by ONICRA was a
great learning experience. This process has been very methodical & systematically
approached rating system and has revealed certain hidden facts leading to our
knowledge enhancement. We are getting exciting response from our bankers
towards enhancing our credit limits on request.
Mr. Deepak Gupta
C D Engineering Company - Ghaziabad
The performance and Credit rating initiated by NSIC is of tremendous help to
Small Scale Units. The entire exercise conducted by ONICRA was very systematic
and disciplined and the report facilitated in strengthening relationships with our
bank. The rating helped us in availing an enhanced credit limit from our bank. We
would highly appreciate this gesture of your and seek to further strengthen this
relationship.
Ashok Arora
MD Arora Enterprises Pvt . Ltd. - Amritsar
8/3/2019 MSME - Rating
24/24
Thank You!
For Further Queries, Kindly Contact:
ONICRA Credit Rating Agency of India Ltd.
Corporate Office:
11th Floor, Vatika City Point, Gurgaon 122 002Fax: 0124 3076033
The information transmitted is intended only for the person or entity to which it is addressed and may contain
confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any
action in reliance upon, this information by persons or Entities other than the intended recipient are prohibited. If
you have received this in error, please contact the sender and delete the material from any computer. The contents
of this message may contain personal views, which are not the views of ONICRA, unless specifically stated.