Dear Sir,
This is further to our telephonic discussion with our representative.
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I would also wish to thank you for allowing us to introduce as business associates of CARE Limited, a RBI &SEBI Accredited independent Rating Agency of India.
The recent changes in the industrial climate world over and the liberalization of economic environment in our country have thrown up many opportunities and challenges to the small-scale industries. Therefore, there is a need to create awareness amongst small-scale units about the strength and weakness of their existing operations and to provide them an opportunity to enhance their organization strength.
NSIC-CARE rating provides an opinion on the company's operating performance and financial strength.
The Ministry of SSI is providing subsidy of 75% of NSIC-CARE rating fees.
Benefits of NSIC-CARE rating:
· Acceptability with Banks: The Indian Banks Association enhances the acceptability with banks, lenders and financial institutions. This also gives access to quicker and cheaper credit thereby economizing the cost of lending.
· Confidence among buyers: It shows your operating performance and financial strength, which will infuse confidence among buyers while taking decisions.
· Creating awareness: It gives you detailed analysis of your units' strengths and weaknesses, which can be used to strengthen your operations and finances also. It provides you with the analysis of owners, promoters, directors of SSI unit, which can be used to develop the skills and getting insight.
· Evaluating performance: It provides you with the evaluation of your units' as well as yours operational and financial performance. This gives you an insight of your operations and finances, which are unbiased.
· Risk Management: It provides you the parameters to measure operational, financial, managerial and business risks.
· Identifying areas of improvement: It helps you in identifying the areas of improvement and put focus on the strengths.
Advantages of rating by CARE:
· Regulatory Recognition
CARE Ratings are recognized by Government of India and regulatory agencies in India. CARE is registered with the Securities and Exchange Board of India. CARE Ratings are also recognized by RBI, NABARD, NHB and NSIC. RBI has also recognized CARE Ratings as an eligible external credit rating agency for the purpose of Basel II implementation in India · Independent
CARE is an independent rating agency promoted by major banks and financial institutions in India. The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India. CARE is the only rating agency in India which operates with an independent rating committee comprising of senior and reputed professionals.
· Professional
CARE Ratings endeavor has been to provide investors and risk managers with independent, authentic and insightful credit opinions based on detailed in-depth research, which encompasses detailed analysis of risks that affect credit quality of an issuer. CARE's analyst strength consists of large number of well qualified and multi-faceted professionals from diverse backgrounds such as; financial analysts, economists, sector specialists, chartered accountants, chartered financial analysts and financial risk managers.
· Experienced
CARE has over a decade of experience in rating various types of instruments. CARE assigned its first rating in November 1993 and upto March 31, 2010, CARE had completed 7654 rating assignments for an aggregate value of about Rs23121 bn. With a large number of qualified and experienced multi-faceted analyst and presence in all major metros of India, CARE has a unique understanding of the local business, cultural and value systems and factors which affect the Indian economy.
· Wide Sectoral Coverage
CARE is a full service rating company offering a wide range of rating and grading services which includes rating debt instruments/enterprise ratings of Corporate, Banks, Financial Institutions (FIs), Public Sector Undertakings (PSUs), State Government bodies, Municipal Corporations, Non-banking Finance Companies `(NBFCs), SMEs, Micro finance institutions, Structured finance Securitization transactions. In addition, CARE Ratings undertakes Corporate Governance ratings, Mutual Fund Credit quality ratings, IPO grading, Claims Paying Ability rating of Insurance Companies, Grading of Construction Entities and Issuer ratings.
· Market Acceptance
CARE has a significant rating coverage of the Indian Banks and Financial Institutions, who are also amongst the major investors in the Indian bond markets. This, acknowledges the confidence of Indian Institutional Investors in CARE Ratings. CARE ratings are also used by a wide range of investors including Mutual Funds, Insurance companies, Provident funds, Corporate and Retail investors.
Rating Experience: (As at March 2010)
Total Assignments Completed | 7654 |
Total Instruments Rated | 7206 |
Total Volume of Debt Rated | Rs.23121 bn |
Total Issuers Rated | 2811 |
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The NSIC-CARE rating fees is as follows:
| Turnover (Rs Lakh) |
Particulars | < 50 | 50-200 | >200 |
Rating Fees (Rs.) | 27000 | 35000 | 47000 |
Service Tax @ 10.3 % (Rs.) | 2,781 | 3,605 | 4,841 |
Total Fees (Rs.) | 29,781 | 38,605 | 51,841 |
Subsidy from NSIC (Rs.) | 22,336 | 28,954 | 38,881 |
Amount payable by SSI (Rs.) | 7445 | 9651 | 12960 |
Renewal Fee excluding Service Tax | 8100 | 10500 | 14100 |
*SSI unit needs to pay only their share of 25% of total rating fees as given in above table, rest 75% will be paid by NSIC directly to CARE.
Units with green-field projects
| Turnover (Rs Lakh) |
Particulars | < 50 | 50-200 | >200 |
Rating Fees (Rs.) | 50000 | 60000 | 75000 |
Service Tax @ 10.3 % (Rs.) | 5,150 | 6,180 | 7,725 |
Total Fees (Rs.) | 55,150 | 66,180 | 82,725 |
Subsidy from NSIC (Rs.) | 25,000 | 25,000 | 25,000 |
Amount payable by SSI (Rs.) | 30150 | 41180 | 57725 |
Discount 15% | 4523 | 6177 | 8659 |
Amount payable by SSI (Rs.) | 25628 | 35003 | 49066 |
Renewal Fee excluding Service Tax | 15000 | 18000 | 22500 |
Please feel free to ask us for further information.
Yours truly,
For Vital Consulting
(Business Associate of Care Ratings)
Rakesh Dwivedi
VITAL CERTIFICATIONS AND BENCHMARKINGS