Report -2012 Study of the Performance & Credit Rating Scheme for Micro & Small Enterprises

Acknowledgements

A mere line of appreciation would hardly meet the end of justice in pledging our sincere thanks and grateful acknowledgements to Dr. H. P. Kumar CMD, National Small Industries Corporation Ltd (NSIC) for assigning the present study to our organization. Pertinently, we thank Mr. Ravindra Nath Director (Finance), Mr. Gaurang Dixit General Manager (Finance) and Mr. Krishan K. Agrawal Manager (Accounts) for their inestimable support and unstilted guidance without which the work of such scope would not have been accomplished in time. This study would have been much poorer in its form, subject content and narratives without very specific inputs from Gurpreet Kaur who effectively and efficiently owned up responsibilities to carry forward varied tasks stipulated under the study. Enabling support received from other members of the study team, especially Amit Panjwani, Nikita Aggarwal, Seema Kohli, Raj, Puneet Sharma, Namita Swain and Indrajeet is truly outstanding. One would dismally fail in its duty for not placing on record their contributions and so also heartfelt thanks due to them. This study is an outcome of the amalgamation of information gathered through physical visits to 100 rated enterprises, personal interaction with authorized representatives of 1,518 sampled units, rating agencies and various banks in various regions of the country. In the near impossibility of individual acknowledgement to each of them, fondly and fervently, grateful heartfelt to them is in order. Undoubtedly, they are, and shall always remain, the key protagonists as long as this study retains its professional significance.

Ambuj Mohapatra
Development Facilitators

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List of Abbreviations

CARE CC CII CRA CRISIL DF DIC D& B EDI FI FICCI GoI IBA ICRA J&K MSE MSMED NIESBUD NER NSIC ONICRA PCR Scheme RBI SIA SIDBI SMERA

Credit Analysis & Research Limited Cash Credit Confederation of Indian Industry Credit Rating Agency CRISIL Limited Development Facilitators District Industries Centre Dun and Bradstreet Information Servi ces India Pvt. Ltd. Entrepreneurship Development Institute Financial Institution Federation of Indian Chambers of Commerce and Industry Government of India Indian Banks Association ICRA Ltd. Jammu and Kashmir Micro and Small Enterprise Micro Small and Medium Enterprise Development National Institute for Entrepreneurship and Small Business Development North Eastern Region National Small Industries Corporation Ltd. Onicra Credit Rating Agency of India Ltd. Performance & Credit Rating Scheme Reserve Bank of India Small Industry Association Small Industries Development Bank of India SME Rating Agency of India Ltd.

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List of Tables & Graphs

List of Tables Table-1: Table-2: Table-3: Table-4: Table-5: Table-6: Table-7: Table-8: Table-9: Table-10: Table-11: Table-12: States covered under the study Perception of enterprises on rating impact in banking channels Impact on performance of the rated enterprises Perception of rating importance on credit Areas of benefit from rating while availing credit facility Rated enterprises benefitted in enhancing customer response Perception of enterprises on rating impact on suppliers and customers Suggestions made under rating process Suggestions made under rating validity Source of awareness on the rating scheme Suggestions to expand the outreach of NSIC rating scheme MSEs rated under PCR scheme in different years 10 16 17 18 18 19 19 21 21 22 22 27

List of Graphs Graph-1: Graph-2: Graph-3: Graph-4: Graph-5: Graph-6: Graph-7: Graph-8: Sample coverage under different rating agencies Sample coverage under different regions Nature of enterprises Type of registration Ownership pattern of studied enterprises Turnover profile of sample enterprises Rating of sample enterprises in different years Wholesale Price Index-Reserve Bank of India 11 11 12 12 13 13 14 24

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Executive Summary

The study of the Performance & Credit Rating Scheme for Micro &Small Enterprises was assigned to Development Facilitators (DF), Delhi with specific objectives to assess: (i) impact of the scheme as perceived by banks/financial institutions; (ii) recognitions derived by the enterprises amongst vendors and buyers and (iii) impact accrued in terms of performance parameters including improvement of their access to credit with ease. The study was also aimed at suggesting interventions, if any, in the areas of: (i) changes/modifications required in the quantum of financial assistance and procedures; and (ii) changes necessary for improving effectiveness of the scheme. A time frame of three month was allotted for the study under which at least 1,500 rated enterprises were to be contacted across states representing all regions of the country. To carry out specific tasks under the study, a dedicated team was put in place that tracked down rated enterprises at random in all regions covering each state; engaged authorized representatives of such enterprises through telephonic conversations and email exchanges to fill-in the customized web enabled survey questionnaire; dispatched the survey formats to enterprises through couriers for expeditious action at their end and touched base with banks and NSIC empanelled rating agencies to gather qualitative insights on the credit rating scheme. The quantitative data collected through survey method and insights gathered through qualitative consultations were appropriately assimilated and analyzed to develop specific study findings as per the objectives of the study.

Specific key highlights of the study findings are presented below: Near two-fold increase in the number of participating MSEs in the rating process over the last three years (5,000 in 2008-09 to 10,000 in 2010-11) suggests that the quantum jump is an outcome of popularity, recognition, relevance and growing acceptance of the rating scheme amongst enterprises across states. Popularity of NSIC rating scheme among enterprises has also been validated by banks as a majority of banks (89%) indicated that enterprises approached for credit assistance especially in the category of one crore and above were either rated or were fully aware of the NSIC scheme. 67% banks also stated that enterprises having lesser credit requirements had comprehensive knowledge on the NSIC rating scheme and were positively inclined to get their unit rated. 62% of the contacted enterprises showing willingness for renewal in the coming year and almost equal proportion (61%) specifying that subsidy was not a motivating factor for being rated under NSIC rating scheme suggests that enterprises are quite serious about the rating process and view their participation in the rating process with specific purpose.

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Rating process providing key inputs for growth of enterprises has also been evident under the study. An increase of 4% in the highest category of rating (SE1) in the last three years indicates that many of the enterprises have improved their positions from moderate performance capability to high performance capability (from SE 3 to SE 2 or SE1), a shift clearly attributing credit to the rating process. The rating mechanism being accorded as a helping instrument in achieving positive growth in the sector can be gauged from the fact that there has been a consistency of rating in the moderately performing category 3 B in the last three years and decrease in numbers of poorly rated units during the same period. The fact that, of the 32% enterprises that renewed their ratings in the last three financial years, 67% achieved higher rating in subsequent years and 53% improved their financial performance very strongly presupposes benefits accrued by rated enterprises not only in accessing finance but also in improving their over-all operational efficiency. The enabling effect of rating with regard to accessing credit in preferential terms are underlined by the fact that more than 61% rated enterprises termed rating to be highly significant for credit approval and 10% of the enterprises indicated rating as an important parameter in credit processing. The banks contacted under the study shared that 44% enterprises who approached for credit were benefitted in terms of reduced rate of interest, 22% in terms of rebate in loan processing fee including folio charges, etc. These healthy perceptions of banks lead to a thought pattern that the rating awarded under NSIC scheme is more or less conclusive for both borrower as well as lender. Owing to rating, wider recognitions have been derived by enterprises amongst vendors and buyers, as 57% enterprises indicated that they have been benefitted in terms of customer acceptability and recognition. Out of the enterprises who are in to exports, 53% reported benefits in securing export orders after getting rated. The rated enterprises are noted to be benefitted in two specific areas in the performance parameters. One, 58% revealed rating impacted on proper maintenance of financial records and audit reports and two, 50% indicated impact registered in terms of upgradation of technology. Operational impacts accrued by rated enterprises, as indicated by the present study, assume significant importance as many view rating as merely an instrument to help credit access. This has been negated by the fact that 31% enterprises contacted indicated that good rating induced improvement in system and policies; 29% indicated to have impact in terms of incorporating checks, control and governance practices, 23% achieved transparency in operations and 25% registered impact on product quality. With regard to impact of rating amongst vendors and buyers, the study notes that rating primarily leveraged benefits in the areas of customer acceptability and recognition (57%),

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generating more customer queries (42%) and improvement in business orders and sales volume (20%). The fact that 53% exporting enterprises have secured export orders after getting rated and 32% received queries on the rating and its relevance from the overseas associates, signifies the specific impact of rating amongst vendors and buyers and emphasizes the fact that NSIC rating scheme is gaining ground in the international market. As noted under the study, 33% enterprises renewed their ratings which is quite encouraging. However, a majority of them (90%) had gone for rating for only two consecutive years during the last three years. This, as one note, has been a consequence of poor understanding of rating implications by the enterprises which need to be remedied by sensitizing them through intensive outreach interventions. One of the specific suggestions under the study is that the rating agencies should prioritize focusing on identification of micro enterprises (as only 20% sample enterprises were in this category) in dedicated industrial clusters in each state and consistently engage them ensuring their increased participation in the rating process. The rating agencies are ready to take a plunge as it was shared by the rating agencies with the study team that they would be happy to work out visibility strategy along with NSIC in order to create more awareness in tier-III towns where awareness on rating scheme is minimal. The study points out that there has been somewhat a lack of motivation for the poor rated units in the rating mechanism. It is so because, rating agencies hardly provide feedback about their poor rating status. The study notes that it should be prioritized by way forwarding feedback specifics to poor rated units enabling them to analyze their strengths and weaknesses and advice improvements if asked for, so as to chart out a sustainable growth trajectory. Empanelled credit rating agencies should proactively take a call on this. Almost one-third (31%) enterprises who did not go for renewal indicated renewal fee to be subsidized and doing away with different rating fee charged by different rating agencies so as to ensure cost-effective rating intervention. The 32% enterprises who continued their ratings in the last three financial years suggested that Government should consider a concessional structure after every three consecutive ratings which would generate positive vibes and enthusiasm among enterprises. About 40% enterprises who responded in giving suggestions under the study felt the need for making rating process a tad simpler and easy to comprehend, 28% advocated the process to be made faster, 25% suggested that rating should equally emphasize nonfinancial aspects and only 13% indicated that a standard procedure should be followed by all rating agencies. The study notes that a need is felt to propagate the long term benefits of the rating scheme amongst micro enterprises. Enterprises suggested roping institutions and associations with pan-India presence for promotion of the NSIC rating scheme.

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Specific key recommendations emanated from the study findings are presented below: There is an ardent need for continuation of the PCR scheme with renewed endeavors in the 12th Plan period with assorted expansion in its scope and coverage. It would be appropriate to look into the need for increase in the quantum of subsidy under the PCR scheme in due course of time. Banks may be included as implementing agencies for the PCR scheme along with NSIC for a fixed timeframe. Greenfield units, units that have completed at least six months of operation may be covered under the PCR scheme. Subsidy under PCR scheme for MSEs in the NE region and J&K be made in line with the subsidy being given under other centrally sponsored schemes of the Government of India. Medium enterprises may be covered under the PCR scheme. There is no need to provision subsidy on renewal of ratings under the PCR scheme.

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Introduction

The MSE sector is a significant contributor to the Indian economy. Based on official figures 1, this sector employs 60 million people through 26 million units contributing 40% of the countrys total export and 45% of manufacturing output. MSEs, in the last decade, have garnered unprecedented opportunities on one hand, and have faced serious challenges on the other, owing to the opening up of the Indian economy to the world economy. There is a growing perception that the country's dream of achieving a transformational growth of 9% and above is contingent upon unleashing a wave of entrepreneurship that would not only aid wealth creation but also help create jobs. And these objectives are best accomplished by providing a fillip to MSEs. Over the years, there has been a significant rise in the number of MSEs in the country and it is perceived that the rise in the number of MSEs has led to a substantial growth of employment for the workforce. The Government of India (GoI), with a bid to support the MSEs, have come up with several measures enabling MSEs to meet challenges and constraints that include implementation of schemes and programmes providing easy access to credit with affordable terms, technology upgradation, development of clusters and creating awareness on export-related issues, etc. The GoI introduced the Micro Small and Medium Enterprises Development Act in 2006 that provided the first-ever legal framework to facilitate the promotion and development of MSEs. The Act also provided establishing specific funds for promotion, development and enhancing competitiveness of enterprises, notified schemes/programmes for this purpose, launched progressive credit policies and practices and established effective mechanism for addressing problems of delayed payments. With necessary legislative and policy level back-up from the GoI, the MSE sector, over the years, has transitioned from an unorganized and loosely controlled sector to an organized sector operating in defined business parameters enabling access to technology, fund and market. The transformational effects are slowly realized in the sector as more and more enterprises are exploring benefits of the schemes of the GoI and thus harnessing competitive potential. Indian MSEs are constantly revisiting their business processes, exploring opportunities for collaborative methods, wider acceptability and to bring in competitiveness in their business practices. One of the flagship schemes launched with the objective of assisting MSEs in obtaining performance-cum-credit rating in 2005 was the Performance & Credit Rating Scheme for Micro & Small Enterprises. The scheme is being implemented by National Small Industries Corporation Ltd. as the nodal agency in conjunction with stakeholders such as empanelled Credit Rating Agencies, Indian Bankers Association (IBA) and Small Industry Associations (SIAs). Experience in hand suggests that the scheme has helped the MSEs to achieve higher performance and access better or higher credit from banks/lending institutions. 2

1 2

Retrieved from [Link] Evaluation Reports conducted on impact of the Scheme by NSIC in various years (2006-2010)

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Study Reference, Methodology and Processes

The first ever feedback study conducted by the NSIC on the rating scheme was in the year 2006. 3 The study conducted in the very second year of its launch had brought out a host of operational and impact imperatives. The study had very specifically revealed that a good amount of interest was generated among the studied MSEs for the rating scheme primarily for better and cheaper access to credit. The study had also noted that studied MSEs benefited from the ratings primarily in the area of availing higher credit limit for working capital requirement. The NSIC rating scheme was further evaluated in successive years; the latest was conducted in 2009-10. 4 As per the findings of the latest report, rating exercise had benefited the enterprises not only in accessing finance but also in improving their operational efficiency. The study had also indicated that more MSEs were showing interest in the rating scheme for availing direct benefits in credit approval from the commercial banks and operational efficiency remains the cascading effect of the rating process. The latest study on the shelf had also provided insights on rating assessments for enterprises located in different regions of the country with sufficient indications of enterprises with higher sales turn over as the early adapters of the rating scheme. It had also highlighted the fact that almost half of the rated enterprises contacted under the study were exporting their products to major developed nations. Encouraged by the findings and specific interventions suggested under these studies, NSIC also instituted a study on the rating scheme in December, 2011 engaging Development Facilitators (DF) through open bidding system. 5 The study with a timeline of three months was mandated to contact at least 1500 MSEs in different geographic regions of the country gathering information thus assessing the efficacy of the rating scheme in terms of the followings: (i) (ii) (iii) impact of the rating scheme in the eyes of bankers/financial institutions as well as rated MSEs, impact of the scheme on performance of units which have been rated under the Scheme, proposed changes/modifications which may be required in the quantum of financial assistance, procedures or any other such changes necessary for improving efficacy of the scheme, impact of the scheme on improving access to adequate credit with ease, impact with respect to increase in recognition amongst vendors and buyers and any other such commercial and non-commercial advantages, suggest ways and means to expand the outreach of the scheme.

(iv) (v) (vi)

Retrieved from the website [Link] Feedback Study on Performance & Credit Rating Scheme for Micro & Small Enterprises-2006 4 Study on Impact of Performance & Credit Rating Scheme for Micro & Small Enterprises-2010 assigned by NSIC. 5 TOR of the NSIC assigned study on on the Performance & Credit Rating Scheme for Micro & Small Enterprises(2011-12)

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The study had also specified to interview 100 additional MSEs under case-study method to gather specific insights on ground execution of the NSIC performance and credit rating scheme. As per the study objectives, a comprehensive questionnaire was developed and canvassed with 1518 rated units to gather quantitative information. A question guide was also formulated to have interaction with 100 SMEs. Both quantitative and qualitative data were thus gathered on the studied enterprises.
Table-1 States covered under the study North Delhi Haryana Himachal Pradesh Uttar Pradesh Uttarakhand Jammu & Kashmir Punjab East West Bengal Bihar Jharkhand Orissa Andhra Pradesh Kerala Pondicherry 70 20 44 45 82 52 9 Assam Manipur Meghalaya Tripura South Karnataka Tamil Nadu 90 80 38 81 32 26 53 West Gujarat Maharashtra Rajasthan Chhattisgarh Madhya Pradesh Dadra & Nagar Haveli Daman & Diu Goa North East 23 4 2 2 128 149 131 183 72 33 52 10 1 6

The key features of the methodology adopted under the study are: (i) emailing NSIC approved questionnaire to the rated enterprises across regions, (ii) organizing interviews with authorized persons of randomly selected rated enterprises, (iii) providing guidance on the web administration of the questionnaire, (iv) intensive interaction with primary stakeholders of the credit rating scheme and (v) integration of software for automated data sourcing and analysis. A comprehensive report based on the findings of the survey as well as qualitative consultations was prepared and submitted to NSIC for necessary observation. The detailed list of 1,518 enterprises covered, 31 enterprises belonging to north eastern region included in the sample 31 enterprises, the list of 100 SMEs contacted under the study are appended to the study report as Annexure-A and Annexure-B and Annexure-C.

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Key Study Observations Section-A General Particulars of Enterprises

Sample Coverage

Out of the 24,726 rated MSEs for which NSIC had provided the database for selection of sample under the present study, a total number of 1,518 enterprises were randomly reached out after segregating them rating agency-wise, state-wise and region-wise. Of the six NSIC empanelled credit rating agencies who had undertaken the rating exercise between 2008-09 and 2010-11, the coverage under the present study has been on pro-rata basis. Enterprises covered under CRISIL top the chart (47%) followed by SMERA (32%), ONICRA (17%), D& B (3%), ICRA (1%) and CARE (0.3%).

Agency-wise Break-up
700 491 266 41 CRISIL SMERA ONICRA D&B 15 ICRA 5 CARE

Graph-1 Sample coverage under different rating agencies

Sample Representation

Representative sample was purposively drawn from different regions of the country including the north east. The sample had the representation of 32% rated units from the west, 28% from south, 26% from north, 12% from east and 2% from the north eastern region.
Region-wise Break-up
31 North South East West North East 179 420

488

400

Graph-2 Sample coverage under different regions

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Nature of Enterprises

Under the sample, enterprises engaged in different activities were studied. It was noted that a majority of the studied enterprises are engaged in manufacturing activities (85%) followed by activities belonging to services sector (11%) and agricultural processing activities (4%).
Nature of Enterprises
162 61

1295

Agri-processing

Manufacturing

Services

Graph-3 Nature of enterprises Type of Registration

Of the total rated enterprises studied, 80% are registered as small enterprises with the District Industries Centre (DIC) and the rest 20% are micro enterprises.

Registered with DIC as:

1213 305

Micro Enterprises

Small Enterprises

Graph-4 Type of registration

Ownership Pattern

In terms of ownership pattern of the rated enterprises, it was noted that almost half (49%) of them are private ltd. companies and 22% each are either partnership firms or run on proprietorship basis. Only 7% enterprises are from the category of public limited company and less than 1% registered as cooperative societies.

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Ownership Pattern
Public Ltd. Proprietorship Private Ltd. Partnership Co-operative Society 2 329 108 333 746

Graph-5 Ownership pattern of studied enterprises

Financial Turnover and Trend

Categorizing enterprises as per financial size of their operation, it is noted that enterprises having larger operation and higher financial turnover have shown more awareness and interest in the performance and credit rating exercise. Enterprises having turnover above Rs.10 crores are the highest in number in the sample followed by those whose turnover falls in the category of Rs.5 crores to 10 crores, between Rs.1 crore and 5 crores. Enterprises having turnover between Rs 25 lacs and 1 crore are represented at the bottom of the pile. The same trend is visible for all three financial years.

Turnover Profile and Financial Trend of sample MSEs

2010-11 2009-10 2008-09
728 656 339377342 36 86 115 411392 330 634

25 lacs- 1 Cr

1 Cr - 5Cr

5 Cr - 10 Cr

Above 10 Cr

Graph-6 Turnover profile of sample enterprises

The financial trend analysis of the enterprises suggests a positive tilt towards improved financial status of the enterprises. It is noted under the study that more number of rated enterprises who had continued their ratings in the last three financial years have improved their financial performances indicating rating exercise benefitting units not only in accessing finance but also in garnering other benefits by improving operational efficiencies. This is evident in the bar chart where in the turnover category of Rs. 25 lacs to 1 crore, maximum number of studied enterprises are there in the year 2008-09, followed by the year 2009-10 and least in the latest year 2010-11.

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Almost similar trend can be seen in the next higher turnover category of Rs. 1 crore to 5 crores. However, the trend has just reversed in the highest turnover category of above Rs. 10 crores and in the turnover category of Rs. 1 crore to 5 crores, where the maximum number of enterprises are there in the year 2010-11 and the least in the year 2008-09. It thus suggests that there is a need for further strengthening of efforts towards reaching out to small enterprises so as to impart longterm benefits under the credit rating scheme.
Rating Scale Distribution of Sample MSEs

Among the sample enterprises, 38% are rated in the category of highest performance capability and high or moderate financial strength i.e. in SE1 A and SE1 B. This is followed by SE 2A and SE 2B representing 27% of the enterprises in the category of highest performance capability and high or moderate financial strength. In a group of 1518 enterprises, 65% representing high growth potential is an encouraging trend.

Rating of the sample MSEs

450 400 350 300 250 200 150 100 50 0 410 361 305 248 129 54 228 160 96 4 5 23 7 4 0

Graph-7 Rating of sample enterprises in different years

Out of 493 enterprises (32%) in the sample who renewed their credit rating, 331 enterprises (67%) achieved higher rating in subsequent years, 28% (138) maintained the same rating and only 4% (19) got a lower rating. These numbers are encouraging and clearly show that enterprises which got their credit rating renewed were able to improve upon their past rating. It thus can be claimed that this shift in rating could be a result of being rated under the NSIC rating process providing key inputs for growth financially and operationally. The trend also suggests that there is a general improvement in the rating of the enterprises who have been consistently rated over the last three years and the numbers of poorly rated units declined. The rating mechanism, thus, may well be a helping instrument in achieving positive growth in the sector.

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Section-B Impact in the eyes of Banks/Financial Institutions

Access to credit has been central to the rating scheme. The competitiveness of the MSE sector has been seriously hindered owing to limited access to finances through commercial banking channels or sourcing from the open market. This has affected the growth of the small businesses in the country and to ameliorate the situation the GoI has interfaced several measures including making fund available, helping the small businesses access fund and instituting a process for quick disbursement of fund to the units when they need it. NSIC Performance and Credit Rating Scheme is one such instrument in this direction in which the rating by an independent agency with performance and finance capability parameters help the banks and financial institutions to take a quick decision on the credit request. Viewed in this perspective, the present study attempted to assess perceptions of both bankers as well as rated enterprise with regard to impact of the NSIC rating scheme, the findings of which are indicated below:
Perceptions of Banks

Ten different banks including the Small Industries Development Bank of India (SIDBI) were approached for a feedback on the Rating Scheme. While the detailed discussions are elaborated in Annexure-E, the specific impact as accrued are reflected below. While a majority of the banks (67%) indicated that they have tie-ups with 3-4 major credit rating agencies and as a policy matter, they do not recommend enterprises to get their units rated under a particular agency. On the other hand, about 11% of the banks indicated that they recommend enterprises to get their rating done through SMERA. It so because, SMERA focuses primarily on the Indian SME segment with a view to facilitate greater and easier flow of credit from the banking sector to SMEs. Cent percent banks, however, indicated that ratings awarded by NSIC empanelled rating agencies take into account industry dynamics by factoring in a system through which an enterprise could compare its strengths and weaknesses with those of other companies in the same line of business. This is done through statistically derived industry benchmarks for various ratios. It is therefore that the banks encourage enterprises to get external rating which help them to know the basis of arriving ratings. In turn, it helps enterprises in negotiating better terms from the lenders. Almost one-third (33%) banks shared their experiences that due to credit rating done by enterprises and its timely presentation to the banks; they have revised their own internal ratings for credit assessment. A majority of banks (56%) also indicated that rating provided the enterprises a competitive advantage. A high proportion of banks (89%) indicated that those enterprises who approached the banks for credit assistance, especially in the category of one crore and above, were fully aware of the NSIC

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scheme. It was also specified by the banks that 67% enterprises having lesser credit requirements too had comprehensive knowledge on the rating scheme. All the banks contacted also specified that the enterprises who had limited knowledge on NSIC rating scheme shown positive inclination to get their unit rated so as to derive consequential benefits of the rating scheme.
Benefits as perceived by Rated Enterprises

Enterprises contacted under the study were asked to indicate whether they were aware about the NSIC rating scheme when they got their units rated for the first time to which only 39% indicated that they had prior knowledge. On being asked whether they had realized any benefit after being rated, 57% indicated that rating has benefitted their unit in some way or the other. In a bid to ascertain in which area the enterprises had realized benefits, 46% indicated to have taken advantage of their rating scale in the banking channels by way of applying for credit and of those who had applied for credit, 68% enterprises indicated to have shared their rating status with their banks. Among the enterprises who had applied for loan, 82% indicated that they had experienced rating being helpful in securing credit.
Table-2 Perception of enterprises on rating impact in banking channels Aware of the benefits of credit rating before getting the NSIC rating done for your unit Whether NSIC-credit rating scheme has benefitted the unit in any manner Ever rated the unit prior to rating under NSIC-credit rating scheme Applied for loan/credit after getting the NSIC rating done for your unit If applied for loan, whether information was provided to banker/financial institutions about the units credit rating Bank/financial institutions giving due cognizance to credit rating Whether NSIC rating helped in securing loan or credit facility Whether subsidy provided by NSIC a major motivating factor for getting unit rated Willingness to renew credit rating next year

Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No

589 929 864 654 494 1024 696 822 473 223 568 128 431 265 594 924 941 577

39% 61% 57% 43% 33% 67% 46% 54% 68% 32% 82% 18% 62% 38% 39% 61% 62% 38%

More than 61% enterprises indicated that subsidy was not a motivating factor for getting rating done under the NSIC scheme. It suggests that enterprises were serious about the rating process and did not view their participation without purpose. Almost equal proportion of respondents indicated that they would go for renewal of rating in the coming year. The above analysis portrays a very encouraging trend with regard to perception levels of lending/financial institutions on the impact of rating and also indicates that concerted efforts have been undertaken by all stakeholders of the rating scheme to make the scheme more beneficial in terms of accessing credit with ease.

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Section-C Impact on Performance Parameters

The NSIC rating scheme primarily addresses the performance and financial capabilities of enterprises. A look at the rating process reveals that the rating awarded under NSIC rating scheme are specifically focused on these two critical areas of: (i) financial capabilities and (ii) operational efficiency of the rated enterprises. In all earlier studies conducted on the subject, it was noted that the rating scheme was widely considered as an instrument to help credit access and many of the enterprises were not aware of the performance capability inputs from the rating process. Thus, the findings under the present study assume significance as it is evident that the rated enterprises are benefitted in two specific areas in the performance parameters. The major impact has been on proper maintenance of financial records and audit reports, indicated by 58% rated enterprises, followed by registration of impact in terms of up-gradation of technology as revealed by half (50%) of the enterprises contacted under the study.
Table-3 Impact on performance of the rated enterprises For proper maintenance of financial records and audit reports Improving quality of product Increasing productivity of unit Incorporating checks, controls and governance practices Attracting better and skilled manpower Improving systems and policies Up-gradation of technology in production process Increasing capacity utilization Achieving transparency in operations, increased information flow etc. Adopting corporate social responsibility (CSR) and social accountability measures Saving energy and minimizing power losses through increase in efficiency

874 383 321 445 220 467 755 303 344 246 201

58% 25% 21% 29% 15% 31% 50% 20% 23% 16% 13%

There have been a wide range of additional impacts accrued by enterprises by being rated, the study revealed. It enlisted that almost one-third (31%) accrued impact on improvement in system and policies, 29% enterprises feel rating helped incorporating checks, control and governance practices, one-fourth enterprises achieved improved their product quality, 23% indicated rating augmented transparency in operations, and 20% felt the impact in the areas of increased productivity as well as increased capacity utilization. It is extremely satisfying to note that rating helped in adopting corporate social responsibility (CSR) and social accountability measures to 16% of the enterprises contacted under the study. The above findings sum up with some perspective buildings. That, the fulfillment of the avowed objectives of NSIC rating scheme have been effectively achieved in terms of making enterprises competitive, management process oriented, financially strong and technologically advanced. Second, the rating mechanism offers an apt opportunity to a close examination of operational and financial capabilities which empowers enterprises to a great extent. Last but not the least, the NSIC rating scheme is an inclusive and consultative process which provides feedback on inadequacies and strengths that helps enterprises to improve their bottom lines.

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Section-D Impact on improving access to adequate credit

Under the study, the 696 enterprises who had applied for bank credit were asked to explain their experience with regard to the role of rating during the credit process. More than 60% rated enterprises termed rating to be highly significant for credit approval, while 23% stated it to be insignificant. It therefore, asserts the enabling effect of the rating with regard to accessing credit in preferential terms.
Table-4 Perception of rating importance on credit Highly significant Insignificant Rating carried minor importance in credit processing Rating was important parameter in credit processing 425 160 41 70 61% 23% 6% 10%

The study further revealed that only 6% of the enterprises acknowledged the recognition aspects of the rating in the credit approval process, but termed it as having minor importance in comparison to other commercial banking parameters. 10% of the enterprises indicated rating as an important parameter in credit processing.
Table-5 Areas of benefit from rating while availing credit facility Acceptability and recognition Quicker processing Higher cash credit or working capital limit Cheaper interest rates Relaxed collateral requirement Relaxation in service charges Reduction in frequency of the units spot inspection by bank officials Simpler documentation Additional loans from the same bank

779 38 176 113 13 25 50 38 25

62% 3% 14% 9% 1% 2% 4% 3% 2%

Acceptability and recognition was stated by 62% enterprises to be one of the important advantages derived from the rating scheme at the time of availing credit. About 14% indicated higher cash credit or working capital limit in an existing relationship and a little less than onetenth enterprises (9%) indicated benefit in securing cheaper interest rate as a result of rating exercise. The above findings lead to a firm conviction that by being rated, the micro and small enterprises have in a way marginalized the problems of reluctance shown by lending institutions in advancing timely and adequate credit. The findings also make one strongly believe that NSIC has paved way for its empanelled rating agencies to provide comprehensive, transparent and reliable ratings widely acceptable by lending institutions thereby enabling enterprises to have access to credit effectively, leveraging growth and sustenance in the backdrop of industry dynamics and industry averages.

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Section-E Impact with respect to increase in recognition amongst vendors & buyers

Marketing of products or services is always demand driven. Goods manufactured or services provided by the MSE sector are always needed to be customer relevant in cost and quality. The NSIC rating has been purported to be a good help in benchmarking the product in the quality content. Under the study, therefore, impact of rating amongst vendors and buyers and specific market access has been ascertained through structured and in-depth inquiry. It was noted that rating has primarily leveraged benefits in two specific areas: (i) in customer acceptability and recognition (57%) and (ii) helped in generating more customer queries (42%). Minor benefits indicated by the enterprises are improvement in business orders and sales volume (20%) and help in better pricing of products (17%).
Table-6 Rated enterprises benefitted in enhancing customer response Customer acceptability and recognition Helped in generating more customer queries Helped improve business orders and sales volume Helped in better pricing of the products

865 638 307 258

57% 42% 20% 17%

Further, it was also noted that 36% enterprises were exporting their products and feedback received indicated that 53% exporting enterprises had secured export orders after getting rated and almost one-third (32%) received queries on the rating and its relevance from the overseas associates.
Table-7 Perception of enterprises on rating impact on suppliers and customers Inclusion of NSIC-Rating in the marketing or corporate information of the enterprises Yes intended for the customers No Whether customers and associates are aware of the NSIC-Rating of the enterprise Yes No Whether the enterprise into exports Yes No If exporting, whether benefited in securing export orders after getting rated Yes No Whether received specific queries on the NSIC rating from overseas clients/associates Yes No Whether rating helped the enterprise in getting Government contracts Yes No Whether getting rated under the NSIC scheme helped in availing longer period of credit Yes from suppliers No Whether market credibility of the enterprise improved among suppliers after getting rated Yes under the NSIC scheme No Whether getting rated under NSIC scheme helped in bargaining and reducing the overall Yes cost of purchases No Has rating helped in getting easier access to international markets for imports Yes No

978 540 880 638 546 972 289 257 176 370 242 1276 136 1382 303 1215 167 1351 440 1078

64% 36% 58% 42% 36% 64% 53% 47% 32% 68% 16% 84% 9% 91% 20% 80% 11% 89% 29% 71%

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The enterprises were also asked to specify whether rating helped them to receive government contracts to which only 16% indicated positively. With regard to improvement in market credibility amongst suppliers, 20% of the sampled enterprises indicated to be privileged on the account. However, proportionally insignificant rated enterprises (9%) indicated that the rating scheme helped them in availing longer period of credit from suppliers and in terms of reducing the over-all cost purchase (11%). However, almost one-third (29%) rated enterprises stated to have easy access to international market for imports. The above facts indicate two important findings: (i) the rating scheme being an initiative of the GoI has gained much operative ground in international markets and (ii) the MSE sector, over-all, has been credited with customer recognition owing to rating mechanism which is comprehensive, transparent and reliable.

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Section-F Changes/modifications for improving the efficacy of rating scheme

The NSIC feedback and rating scheme has been able to rate about 30,000 enterprises till March, 2011 and 14,000 MSEs are likely to be rated during the year 2011-12. Highly appreciable achievement though, the challenge for NSIC is to empower the rated enterprises for renewal. Therefore, under the study rated enterprises were asked to provide suggestions with regard to rating fee, processes involved in rating and validity period of rating.
Rating Fee/Renewal Fee

Under the study it is noted that out of the 1,518 units contacted, 32% (493) enterprises had opted renewal of which 90% (444) were rated for two consecutive years during the last three years, thereby indicated that about 1,025 enterprises had gone for one time renewal. Under the study, an attempt was made to understand why the 1,025 enterprises did not go for renewal and whether rating fee has been the stumbling block. Of the 1,025 enterprises, 31% indicated that rating fee is one of the major hurdles, if not the sole reason, for not going for renewal. They voiced that the rating fee should be subsidized further so that rating becomes a cost effective intervention. They also suggested doing away with different rating fee structure of different rating agencies. On the other hand, of the 493 enterprises who had concurrent renewal at their disposal, 61% (117) indicated that rating fee is reasonable and affordable.
Rating Process

Out of the 742 responses received, it was noted that 42% (312) suggested that rating process should be simpler and easy to comprehend, 28% (208) stated the process should be made faster, 25% (186) suggested that rating should consider non-financial aspects and only 5% indicated that a standard procedure should be followed by all rating agencies.
Table-8 Suggestions made under rating process Rating process should be made simpler and easy to comprehend Rating process should be made faster Rating should consider non-financial aspects A standard procedure should be followed by all rating agencies

312 208 186 36

42% 28% 25% 5%

Rating Validity

Out of the 617 responses received in this regard, 23% indicated that the validity period of the credit rating is reasonable or should be as per policy; 35% stated that the rating validity is short, so should be more than one year; 24% suggested the validity period should be extended to 2 years; and 18% of the MSEs said that credit rating should be valid at least for 3 years.
Table-9 Suggestions made under rating validity Period of credit rating is reasonable Rating validity should be more than one year Validity should be for 2 years Rating validity should be for 3 years 142 216 148 111 23% 35% 24% 18%

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Section-G Suggested interventions for expanding the outreach of the scheme

With regard to the source of knowledge of the rating scheme, a majority (38%) of them came to know about it from rating agencies, followed by 26% from banks/financial institutions. Knowledge sourcing from newspaper and workshop/seminars on the rating scheme varied between 13% and 19%, which is not very proportionally significant. Also, a very small fragment of enterprises (9%) indicated to have used the NSIC toll free number.
Table-10 Source of awareness on the rating scheme Banks/financial institutions Newspaper Rating agencies Workshop/seminars/industry associations Others 395 197 577 273 76 26% 13% 38% 19% 5%

Of the 854 responses received from enterprises with regard to suggestions to expand the outreach of the NSIC rating scheme, almost one-fourth (24%) enterprises suggested that industry associations/confederations should be proactively used to disseminate information about the rating amongst their own members as they frequently interact within themselves. Industrial/trade fairs organized at the national, regional and sub-regional level should also be used for promotion of the scheme as indicated by one-fifth (21%) enterprises. Use of electronic media for propagation of the rating scheme was suggested by 19% enterprises under the study.
Table-11 Suggestions to expand the outreach of the NSIC rating scheme Electronic media should be used on priority basis Advertisements in print media especially in the vernacular press would be useful Prominent personalities in the industry sector should appeal through television for credit rating Promotion of the scheme through industry/trade fairs at national, regional and sub-regional level Industry associations/confederations should be tapped for promotion Regular industry meets and seminars be organized with focus on credit rating

162 94 77 179 205 137

19% 11% 9% 21% 24% 16%

Some very interesting suggestions made by enterprises are noted below: 1. Advertisements in print media especially in the vernacular press would be an effective promotion tool. 2. NSIC registered companies should be made aware of the scheme through web enabled eservices. 3. Institutions under the GoI either having its own offices in different states or having network with local institutions should be used for promotion of the scheme.

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Recommendations

Against the background of specific field learning, viewpoints expressed by cross sections of stakeholders of the Performance & Credit Rating (PCR) scheme and observations made by various
committees and collectives on inclusive development of MSEs in India, comprehensive suggestions have been worked out and presented below.

Continuity of the scheme The MSEs primarily rely on bank finance for their operations and therefore, ensuring timely and adequate flow of credit to the sector has been an overriding public policy objective. Over the years, there has been a significant increase in credit extended to this sector by the banks. As per Reserve Bank of India (RBI), at the end of March 2011, the total outstanding credit provided by all Scheduled Commercial Banks to the MSE sector stood at Rs.4785.27 billion as against Rs. 3622.90 billion in March 2010 registering an increase of 32%. This observation made by RBI at the recently concluded SME Banking Conclave-2012 makes it compelling to ascertain the role played by the PCR scheme in facilitating the MSEs to access better and higher credit from banks without sweat and help them also to achieve higher operational efficiency and performance. A snapshot of the study findings with regard to impact of the PCR scheme in the eyes of bank indicated that rating provided the enterprises a competitive advantage and had triggered enabling effects motivating MSEs to approach banks for credit assistance. One-third banks contacted revealed that due to credit rating done by enterprises and its timely presentation to the banks; the banks had revised their own internal ratings for credit assessment. A high proportion of banks (89%) contacted also indicated that those enterprises who had approached banks for credit assistance, especially in the category of one crore and above, were either rated or were fully aware of the PCR scheme. 67% banks also stated that enterprises having lesser credit requirements had comprehensive knowledge on the PCR scheme and were positively inclined to get their unit rated. The study had also observed that the rated MSEs have, over the years, gained much operative ground in the international market and are currently positioned at the gateway of global growth on the strength of their competitiveness and quality product ranges. Since inception of the scheme in the year 2005, more than 43000 MSEs have already been rated under the scheme and has showed sustained progress in terms of units rated year by year suggesting that the overwhelming popularity of the scheme is an outcome of recognition, relevance and growing acceptance of the rating PCR scheme amongst MSEs. Very importantly, the recognition of the importance of the scheme can also be ascertained from the fact that, from time to time, the RBI has been informing banks about the PCR scheme while informing about its Policy Package for stepping up credit to MSMEs (vide communication [Link]/2005-06/[Link]/2005-06 dated 19.8.2005) and its reiteration every year through guidelines (contained in the master circular [Link]/2011-12/[Link] & NFS dated 1.7.2011) wherein it has been mentioned that banks to consider the ratings of MSE units

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carried out through reputed credit rating agencies under the Credit Rating Scheme introduced by National Small Industries Corporation. The recent recommendations of the Working Group on MSEs constituted under the 12th Plan by the Planning Commission to cover 75,000 units under PCR scheme during the plan period also suggests the profound importance of the scheme. The critical importance of the PCR scheme is also emphasized as by the stipulations made by the Government of India through its Public Procurement Policy that the Central Government Ministries, Departments and Public Sector Undertakings are mandated to procure minimum of 20% of their annual value of goods or services from MSEs. It has also been indicated by the policy to develop appropriate vendors so as to meet the target of fulfilling the 20% requirements of bulk buyers, which can be attained leveraging PCR scheme as it would serve as a tool to help in vendor development. All the above observations clearly strengthen the fact that there is an ardent need for the continuation of the PCR scheme with renewed endeavors in years ahead. Thus, the scheme needs not only to be merely continued during the 12th Plan period but also needs to be expanded in its scope and coverage. Subsidy amount payable under the scheme The subsidy amount payable towards fee charged by rating agencies under the PCR scheme has been based on the turnover of the units which has remained the same since the year 2005 the scheme was launched. Presumably, the subsidy stipulation of 75%, across the board, was arrived at factoring prevailing price index with a pre-ordained upper ceiling linked to the turnover of the units to be rated. As per the RBI, there has been an upward swing of the Wholesale Price Index over the last 6 years (spiraling effect caused up to 1.4 times between these years) as graphically represented below. However, the subsidy under the PCR scheme has not kept pace with the inflation over a period of 6 years with resultant adverse effects on its way forward.

160 140 120 100 80 60 40 20 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Wholesale Price Index - Annual Average

Graph-8 Wholesale Price Index-Reserve Bank of India

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This called for ascertaining under the study the sufficiency and need for upward revision of the subsidy amount payable to the rating agencies. It was thus gathered that there has been an increase in the cost of hiring manpower, in creating awareness of the scheme and in delivering services to MSEs who are not only heterogeneous but also spread across the country including hilly and difficult physical terrains. The causal effect has the ignominy of adversely impacting the viability of operations and abilities to scale up by the rating agencies empanelled under the PCR scheme. Added to the woes for the rating agencies, there has been an increase in the Service Tax from 10.20% in 2005-06 to 12.36% in the year 2012-13, resulting into the reduction of the net amount realized by the rating agencies for each case. The rating agencies are thus disadvantaged and continued on a long term basis, the effect would hold no good for the operationalisation of the PCR scheme. As a strategized intervention, the rating agencies do offer discounts to the rated units over the fee quoted as observed under the study makes it more compelling to comprehend that there has been a real requirement of thought pattern to form in favour of an increase in the subsidy pattern under the PCR scheme. The underlying assertion thus aimed at an overhauling of subsidy amount payable to the rating agencies so as to improve the efficiency of implementation, meticulous operational management and effective supervision. Keeping the above factual assertions, the study recommends that it would be appropriate to look into the need for increase in the quantum of subsidy under the PCR scheme in due course of time. Adding more implementing agencies In no uncertain terms, the recognitions placed by the MSEs with regard to the efficacy of PCR scheme can be undermined so also the role of the nodal implementing agency, NSIC in front ranking coordination and synergy in operationalisation. The bottom lines as reflected, with a modest beginning of only 671 units rated during 2005-06, today it boasts of 43,017 rated units under its fold. Achieving success espouses effective governance and stake holding and NSIC truly path breaks the inertia to desired heights. The perceptible popularity of the PCR scheme as noticed from the fact that a two-fold increase between 2008-09 and 2010-11 (5,011 in 2008-09 to 10,327 in 2010-11) in the number of rated units and the spreading of the culture of credit among the MSEs swifter holds a perspective that a quantum jump in the numbers of rated units in the next plan period is very much in the offing. The current positioning of 35 numbers of banks/financial institutions entering into MOUs with the rating agencies thereby referring their clients for rating under PCR scheme epitomizes the burden to be shared by the nodal implementing agency in the 12th Plan period. A possible projection of units to be rated during the next few years by the NSIC empanelled rating agencies, compelled the study to look into the proposition for ascertaining the need for

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increasing the number of implementing agency under the PCR scheme and its efficacy. The study, through qualitative consultations with cross sections of respondents (rating agencies and contacted rated units) ascertained that the role of commercial banks may be most endearing and critical in furthering the NSIC initiative and thus could share the mandate of implementation of PCR scheme along with the NSIC on an experimental basis. It was presupposed that when banks themselves become a part of the rating process and advise the MSEs to obtain rating before taking decision on any credit proposals it would have greater impact on their decision making process and would benefit the MSEs in greater degree. Moreover, as MSEs need credit support from the banks for which the PCR scheme is playing a significant role, there is a need to build greater confidence and efficacy of the scheme in meeting its objectives of easier and smoother credit availability from the banking system. This can only be achieved by building synergies between the implementation of the scheme with the credit flow from the banking system. This synergy can be built by engaging banks in the implementation of the PCR scheme so that their confidence in the acceptance of the rating will improve and accordingly decision making on the credit proposals will be linked to the rating off the applicant MSEs. It is therefore, suggested that banks may be included as implementing agencies along with NSIC for a fixed timeframe. Covering green field projects, units not having a complete financial year of its operations Under the study, a section of rating agencies (SMERA and CARE) indicated to extend subsidy to Greenfield projects or units having completed 6 months of operation. It was also suggested by these rating agencies that entrepreneurs in the incubator scheme should obtain green field project rating. Due to lack of information on new projects funding from banks for new projects are hard to come by, hence Greenfield units should be covered under the PCR scheme. One rating agency (ONICRA) further indicated that units having six month audited balance sheet instead of a full year owing to initiated production/manufacturing recently, request the rating agency to get them rated under the PCR scheme. It is in this context, they need the mandate of NSIC to rate such units as they need to be supported at its infancy and help these units to get early advantages of the scheme. After having interaction with other rating agencies, it has been found that the units having completed six months of operation are already eligible for rating under the scheme. As regards Greenfield projects are concerned, it would not be out of place to mention the specific feature of the scheme i.e. Performance and Credit. The rating covers a combination of credit and performance factors including operational, financial, business and management aspects, which enables MSEs to ascertain the strengths and weaknesses of their existing operations and take corrective measures to enhance their organizational strength. In view of the objective of scheme, the Greenfield projects may be covered under the scheme.

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Further, it is also suggested that the applicant unit may be asked to submit at-least two proof of identification (i.e. copy of the PAN card, Adhar card, Election ID card, VAT Registration number or Service Tax Registration number) in addition to the documents presently being required to submit along with its application. Subsidy for units to be rated in North Eastern Region and J&K In view of the continuing industrial backwardness of the states in the North East region and special situational disadvantages in the state of Jammu & Kashmir (J&K), promotion of MSMEs has been prioritized in these areas with inclusive industrial policies and governance from time to time. Viewed as special category states, favoured treatment in respect to plan financing and financial devolutions is given to these states on normative parlance to bring them at par with other mainstream states of the country. The Prime Minister Task Force on MSME and the constitution of special working group under the 12th Plan to dwell upon the entire gamut of entrepreneurship development related issues underline the special attention and continued efforts being undertaken with regard to comprehensive development of the MSME sector in the North East region and J&K. As recognition of special problems of these states, significant levels of central assistance to state plans have always been made and it is noted that the per capita levels of central assistance among the special category states are highest in the country. As per an estimate of the Planning Commission, average per capita central assistance to state plans in the north eastern states taken together was Rs.1,456/- compared to Rs.356/- for the country as a whole. In most of the centrally sponsored scheme, these special category states are provided higher incentives in comparison to other states and regions of the country. However, under the PCR scheme, the existing fee / subsidy structure follows an uniform pattern of 75% subsidy to SMEs regardless of their location, area and category. A snapshot of units rated under the PCR scheme during the last three years suggests that not much MSEs have taken advantage of the scheme and coverage needs to be expanded.
Table-12 MSEs rated under PCR scheme in different years Special category areas/states 2011-12 North East 247 J&K 80

2010-11 65 78

2009-10 32 60

Rated enterprises contacted under the evaluation study in the north eastern region and in the states of J&K had emphasized the need to recast the Government share towards rating fee and had suggested an incentivized structure so as to ensure more participation of SMEs from the said region and state under the PCR scheme. The respondent SMEs ardently felt that the proposed rating regimen would stimulate comprehensive development of MSEs in general and disadvantaged segments in particular.

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It is therefore, suggested that subsidy under PCR scheme for MSEs in the NE region and J&K be made in line with the subsidy being given under other centrally sponsored schemes of the Government of India. Covering medium scale units under the scheme The Government of India has been making concerted efforts for promotion and development of MSE sector which enabled the sectoral growth at a higher pace than the overall industrial sector. To facilitate the development of this sector and also enhance their competitiveness, the Government has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, which is in force from 2nd October, 2006 which is a turning point for the development of Indian industries, as it addresses and streamlines entire frame work along with key governance and operational issues being faced by the micro, small and medium enterprises. The MSME sector as a whole with an estimated 2.6 crore units employing 6 crore people has the ability to minimize the 11% unemployment rate and can alone power a growth hungry nation like India to achieve 9% growth in GDP. It is in this context, the role of medium enterprises cannot be undermined in the over-all growth trajectory. Further, the evaluation study has revealed that the PCR scheme has done world of good to the rating units enabling enhanced qualitative operative performance and resiliency other than access to institutional credit without sweat. Assured by the trend and given the contextuality, it would not be illogical to apply the same logic with the expectation that the medium enterprises would also be hugely benefitted under the rating process and thus, be covered under the PCR scheme. The proportion of working medium enterprises in the country is around 30,000, which is only 0.17% of the total working MSMEs in the country. As represented with such an insignificant proportion, coverage of medium enterprises under the PCR scheme would not be difficult at all and thus shall endavour to inclusive coverage of the whole sector. As envisaged under the 12th Plan period to build an eco-system for facilitating growth of the MSME sector as a whole, enhancing the operative performance of MSMEs through the rating process would be immensely beneficial. It is therefore, suggested medium enterprises may be covered under the PCR scheme. Subsidy on renewal of rating Over the past three years, while non-renewal of rating is no more perceived to be a cause for concern for the rating agencies, the SMEs do perceive it as a deterrent for their value positioning both in terms of access to credit and in expanding business propositions. This positive assertion is derived from the fact that there has been a heady growth noted with regard to number of SMEs opting for renewal of rating under the PCR scheme. While a rating agency (CRISIL) has pegged the proportion of rating renewal from its SME clients at 40%, almost two-thirds (32%) of the total SMEs contacted under the evaluation study had indicated renewal of their previous ratings and another 62% SMEs showed keenness in renewal of rating in the coming years.

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The study not only revealed that merely a culture of renewal of rating is comprehensively spreading amongst the Indian MSEs but also had indicated that renewal is by and large viewed by the SMEs as a tool for benchmarking their operative and financial strength year-on-year basis and on a larger canvass, renewal of rating has ensured them in earning immense credibility not only amongst their present clients with whom they are currently engaged at doing business but also in the eyes of their prospective clients with whom they have just begun their business relationship. Viewed in this perspective, introducing subsidy on renewal of rating under PCRS would do more harm than good for infusing vitality to the sector in general and sustainable growth of micro enterprises in particular. This initial inertia of SMEs opting for renewal on their own should be kept momentum and all concerned stakeholders of the PCR scheme must recognize the fact that subsidizing the renewal fee would work for cross purposes. It is, therefore, suggested that there is no need to provision for subsidy on renewal of ratings under the PCR scheme. *********

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Annexures

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Annex-A

List of Rated Enterprise Covered

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 Kudu Fabrics Eastern Bearings Pvt. Ltd. Eskag Pharma Pvt. Ltd. VPI Innovative Solutions NK Paper Tube Industries Ikon Moulders Pvt. Ltd. Rajat Engineering Dhansheel Industrial Corporation Intech Lamp Machinery (P) Ltd. Mastan Tin Works Print & Art Services Pvt. Ltd. Ergo Systems & Services Pvt. Ltd. Team Frontline Ltd Prime Global Attire Pvt. Ltd. Sunshine Enterprises Pvt. Ltd. Periyar Polymers Pvt. Ltd. Eben Telecom Pvt. Ltd. Sree Lakshmi Narayana Rice Flour & Oil Mills Kirpekar Engineering Pvt. Ltd. Thee Classic Printers Varun Enterprises Coirfoam (India) Pvt. Ltd. Paltech Cooling Towers Equipments Ltd. Aroma Agrotech Pvt. Ltd. Nalagarh Steel Rolling Mill Pvt. Ltd. Snowpack Polymers Pvt. Ltd. Swastika Drugs Pharma Ashoka Scrap Traders Pvt. Ltd. Elan Auto India Limited Sumati Engineering Co. Pvt. Ltd. Bharat Foam Udyog Pvt. Ltd. Ganeshom Cereals Pvt. Ltd. Ganpati Foods Pvt. Ltd. Ishvar International Shree Jagdamba Rice & Gen. Mills Sarda Alloy Steel Pvt. Ltd. Shanthala Power Research Corporation Laxmi Industries Rupam Impex Polysil Pipes Fineline Circuit Company Greys Exim Pvt. Ltd. Shree Vinayaka Hard Chrome Balaji Packaging Industries Precicap Industries Sri Vinayaka Cutting Tools Pvt. Ltd. Dynamic Systems Ramesh Electrodes Pvt. Ltd. Chetan Industries Ltd Sunrise Industries 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100 Shri Sadgurudev Agro Pvt. Ltd. Primex Plastics Pvt. Ltd. SDF Earthmovers Aayur Technology Solutions P Ltd Himachal Aluminium & Conductors Jupiter Technologies Pvt. Ltd. Better Labels Manufacturing [Link]. Hi-Tech Electrification Engineers Pvt. Ltd. Maple Composite Containers Ltd. Pioneer Electricals Varna Printers Muziris Softech Pvt. Ltd. Sujaya Rubber Industries Southern Engineering Erectors Sanson Chemical Industries Printers Castle Roto Screentech Pvt. Ltd. S & T Engineers Maruvoor Energy Systems Pvt. Ltd. Metals & Metals Solan Spinning Mills Pvt. Ltd. Arpan Enterprises Arpan Enterprises Premier Tea Industries Annapurna Mechatronics Pvt. Ltd. Enzed Chloro Products Pvt. Ltd. Vasishta CNC Technics Photon Energy Systems Ltd Sunbeam Machines India Pvt. Ltd. Sree Srinivasa Engineering Works L M Foods Sadbhava Fabricators Pvt. Ltd. Avishkar Technologies Sri Durga Industries Marvel Technologies Alfa Flexitubes Pvt. Ltd. Hard Strips S.L. Oberai Minerals Pvt. Ltd. Girish Paper Packaging Pvt. Ltd. Sadguru Screens PowerOne Micro Systems Pvt. Ltd. Maruthi Engineering Enterprises Fine Heat Treaters Circuit Technology Lintas Packaging Pvt. Ltd. Plasto Chem Pvt. Ltd. Avinash Ispath Pvt. Ltd. Rija Steel & Power Pvt. Ltd. Atul Polychem Tikku Industries

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101 103 105 107 109 111 113 115 117 119 121 123 125 127 129 131 133 135 137 139 141 143 145 147 149 151 153 155 157 159 161 163 165 167 169 171 173 175 177 179 181 183 185 187 189 191 193 195 197 199

Durga Marble & Minerals Elite Engineering & Construction Safire Machinery Company P Ltd Shree Ram Cotton Industries Kartar Industrial Corporation Crosslink Wheels Electronics Pvt. Ltd. M/s Flowwell Pumps & Meters Harvel Agua India Pvt. Ltd. IPM Engineering Limited Kisco Castings Griha Software Technologies Pvt. Ltd. Shende Sales Corporation Meena Advertisers Prathamesh Ispat Engineers Pvt. Ltd. Albion Infotel Pvt. Ltd. Pure Petrochem India Pvt. Ltd. GPR Power Solutions Pvt. Ltd. Sharda Organics Pvt. Ltd. Chaitanya Packagings Pvt. Ltd. Genus Apparels (Formerly L M Sagar Exports) Kejriwal Metal Industries India SourceEdge Software Technologies Pvt. Ltd. Cyber Futuristics (India) Pvt. Ltd. Mengi Hi-Tech Pvt. Ltd. Arudra Engineers Pvt. Ltd. Bhanwardeep Copper Strips Pvt. Ltd. RST Electricals Pvt. Ltd. Olive Tex Silk Mills Pvt. Ltd. Cannanore Ceramics Company Pvt. Ltd. Balasore Chemicals Asian Wire Forming & Springs Pvt. Ltd. Assam Electricals Deejay Multipacks Pvt. Ltd. Srinathji Ispat Limited Prince Machines Pvt. ltd. Kashmir Enterprises Himachal Environmental Engg. Co. Pvt. Ltd. Ultima Switchgears Pvt. Ltd. Premier Starch Products Private Ltd. Technostrength Pvt. Ltd. Jaipur Bio Tech Pvt. Ltd. Super Chillers Pvt. Ltd. Print Mart India Pvt. Ltd. Anacon Laboratories Pvt. Ltd. Shiv Hari Plywood Limited Meerut Packaging Industries PAC Industries Pvt. Ltd. VRL Automation Engg. & Projects Pvt. Ltd. Mahavir Foods Thrissur Wovens (P) Ltd.

102 104 106 108 110 112 114 116 118 120 122 124 126 128 130 132 134 136 138 140 142 144 146 148 150 152 154 156 158 160 162 164 166 168 170 172 174 176 178 180 182 184 186 188 190 192 194 196 198 200

Smart Enterprises Silky Silk Pvt. Ltd Gemco Controls Limited Oriental Polyboard Pvt. Ltd. Vinayak Engineers Kashmir Steel Rolling Mills Nexgen Composite Industries Bombay Amusement Ride (P) Limited Drytech Engineers Sitra Infotech Pvt. Limited Cee Dee Vacuum Equipment Private Ltd. Sunrays Engineers Pvt. Ltd. Ratha Worldwide Leathers Pvt. Ltd. Gee Tech Hooks Ramkrishna Electricals Ltd. Lakhmi Woollen Mills Stewols India (P) Ltd. Energetic Consulting Pvt. Ltd. Dots Info Systems India Pvt. Ltd Venus Industries Hospitech Shell-n-Tube Pvt. Ltd. Shree Durga Wheat Products Pvt. Ltd. Fusion Electronics Amutha Plastix Kalinga Metallics & Power Pvt. Ltd. Cimotec Hydro Machines Pvt. Ltd. Kadakia Plastics & Chemicals Pvt. Ltd. Prem Engineering Industries Himadri Foods Pvt. Ltd Saloni Electronics & Controls Wallace Pharmaceuticals Pvt. Ltd. Recorders & Medicare Systems (P) Ltd. Motwane Manufacturing Company Pvt. Ltd. Shalimar Cattle Feeds Pvt. Ltd. Kranti Rubber Products Maheshwari Woods Pvt. Ltd. Hi-Tech Plastics Deen Bandhu Industries SH-Haryana Wires Limited Ambika Engineering Works Sri Laxmi Industries Nath Peters Hygeian Ltd K. C. Wollen Mills Devika Polyesters Pvt. Ltd. Reliable Engineering Services Adithya Freight Forwarders Pvt. Ltd. Shri Adinath Automotive Safeguard Industries Kaveri Polymers Pvt. Ltd.

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201 203 205 207 209 211 213 215 217 219 221 223 225 227 229 231 233 235 237 239 241 243 245 247 249 251 253 255 257 259 261 263 265 267 269 271 273 275 277 279 281 283 285 287 289 291 293 295 297 299

Akhandalamani Electricals & Construction Sanfield India Ltd Cosmos Media Products Pvt. Ltd. Pee Aar International Pvt. Ltd. Bhartiya Vehicles & Engineering Co Ltd Sanghvi Forging & Engineering Ltd Shree Radha Krishna Industrial Fabricators United Engineering Industries NR Switch N Radio Services Pvt. Ltd. Mangturam Gases Pvt. Ltd. Watts Electronics Pvt. Ltd. Anushree Textiles Pvt. Ltd. Clay Craft India Pvt. Ltd. Fitzol Cadet Mercury Laboratories Ltd Janus Packaging Pvt. Ltd. PDS Wood Decors Pvt. Ltd. B.M Advertising & Publicity House Jaldhara Small Tools Pvt. Ltd. Kwality Foundry Industries Sri Chandra Ice Factory Royal Appliances Vykat Prints Pvt. Ltd. Perfect Rotary Offset Pvt. Ltd. RS Kathuria Cycle and Auto Industries Lensel Optics Pvt. Ltd. Jaldoot Materials Handling Pvt. Ltd. Abhilasha Exim Pvt. Ltd. K P Packaging Kay Dee Industries Sumanglam Impex Pvt. Ltd. Jakson Enterprises Prayag Polytech Pvt. Ltd. Sudhakar Irrigation Systems Pvt. Ltd. Sumax Enterprises Pvt. Ltd. J S Metal Traverse Company Priti Wears Brijsons Wire Products Roots Cooling Systems Pvt. Ltd. Dee Development Engineers Limited Rollwell Conveyor Components Pvt. Ltd. Mittal Forgings & Components Pvt. Ltd. Sri Venkateswara Engineering Works Kaizen Measuring Systems Pvt. Ltd. Paper Tech Engineers Pvt. Ltd. Bestochem Formulations (India) Ltd. DRS Infratech Pvt. Ltd. Major Cement Pvt. Ltd. Mohindra Tubes Pvt. Ltd. Gurukrupa Wire Netting Industries

202 204 206 208 210 212 214 216 218 220 222 224 226 228 230 232 234 236 238 240 242 244 246 248 250 252 254 256 258 260 262 264 266 268 270 272 274 276 278 280 282 284 286 288 290 292 294 296 298 300

Sri Vinayaka Packs Anand Polyurethanes Pvt. Ltd. Shingar Limited Jolly Enterprise Progressive Fabricators & Plant Service Engg. Bhowmick Tannery Machine Manf. Pvt. Ltd Vasant Switchgears Pvt. Ltd. V.K.K. Engineering Works NR Switch N Radio Services Pvt. Ltd. Sri Balakumaran Engineering Works Watts Electronics Pvt. Ltd. Gayatri Cotton Industries Hindustan Creations Gemini Colling Systems Projects Pvt. Ltd. Mercury Laboratories Ltd Fujii Granite PDS Wood Decors Pvt. Ltd. B.M Advertising & Publicity House Jaldhara Small Tools Pvt. Ltd. G. D. Dyestuff Industries Limited Sanewal Auto Engineers Pvt. Ltd. Perfect Equipments Oka-Basus Metal Technologies Pvt. Ltd. Poddar International R. Sons Pipes and Electricals Pvt. Ltd. M. M. Castings Pvt. Ltd. Jagdamba Liquified Steels Limited Ashtavaidyan TMV Oushadhasala Five Star Food Export Industries Steelman Industries K B Zaveri Reliable Refractories Pvt. Ltd. Macruss Engineering Maintec Technologies Pvt. Ltd. Shree Gowthamee Rice Industries Pvt. Ltd. Hyquip Systems Ltd MMT Polypacks Pvt. Ltd. Machinoo Tech Paradigm Engineers & Consultants Pvt. Ltd. Venkateswara Balaji Industries Suhas Hydrosystems Pvt. Ltd. Radiant Steels and Alloys Pvt. Ltd. Kama Metal & Alloys Pvt. Ltd. Everest Electrical & Engg. Comp. Pvt. Ltd. Lincoln Pharmaceuticals Ltd. Gabs Power Controls Schon Pharmaceuticals Ltd Flowmore Pvt. Ltd. Metsys Engineering and Consultancy Pvt. Ltd. Liv Media Equipments Pvt. Ltd.

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301 303 305 307 309 311 313 315 317 319 321 323 325 327 329 331 333 335 337 339 341 343 345 347 349 351 353 355 357 359 361 363 365 367 369 371 373 375 377 379 381 383 385 387 389 391 393 395 397 399

Vinflex Products Pvt. Ltd. Saboo Tor Pvt. Ltd. Lesha Impex Pvt. Ltd. PICL (India) Pvt. Ltd. Aarti Writing Products Pvt. Ltd. Safa Enterprises Twin -Tech Trading India Pvt. Ltd. Century Crane Engineers Pvt. Ltd. M.I. Industrial Products Pvt. Ltd. P N Die Castings Pvt. Ltd. Coral Health Care Pvt. Ltd. Ramanattukara Wood Industries Birson Industries Bharat Electrical Contractors & Manuf. Pvt. Ltd. Indage Software And Services Pvt. Ltd. Harshad Thermic Industries Pvt. Ltd. SJM Filters Pvt. Ltd. Hi -Mount Power Supports Trend Setters Alind S. M. Lulla Industries Worldwide Unitech Engineering International Auto Wires J K Paints & Resins Pvt. Ltd. Omega Designs Microfinish Valves Pvt. Ltd. Polymat Industries T K Steel Rolling Mills Ltd Vijay Fabricon Asbesco (India) Pvt. Ltd. S.K.M. Plastics Vishal Engineers Pvt. Ltd. Satya Beverages & Distillers Pvt. Ltd. Apollo Construction Equipments Pvt. Ltd. Geo Foundations And Structures Pvt. Ltd. Sumadhura Constructions Regent Auto Consultants Karma Steels Pvt. Ltd. Curio Crafts Kishan Cattle Feed Industries Cell Com Teleservices Pvt. Ltd. VKC Nuts Pvt. Ltd. Neotech Foundries Mathstraman Manufacturers & Traders Pvt. Ltd. Bihar Rubber Factory Classic Footcare (India) Pvt. Ltd. TM Technique & Comfort India Pvt. Ltd. Rushiprabha Engineers Pvt. Ltd. Tamil Nadu Edible Oils Pvt. Ltd. Dipti Telecom

302 304 306 308 310 312 314 316 318 320 322 324 326 328 330 332 334 336 338 340 342 344 346 348 350 352 354 356 358 360 362 364 366 368 370 372 374 376 378 380 382 384 386 388 390 392 394 396 398 400

Salasar Techno Engineering Pvt. Ltd. Sri Revana Siddheswara Gears and Sprockets Gehlot Enterprises Pvt. Ltd. Reinforces Komposite Eng. (I) Pvt. Ltd. Bangalore Safety Glass Works Pvt. Ltd. Machinoo Tech Dhillon Stone Crusher Pvt. Ltd. Indus Smelters Ltd Shree Raj Ventech Power Cab Ltd Anushri Fashion India Pvt. Ltd. M/S Harjai Sons GLS Polymers Pvt. Ltd. Electrocoating &Insulation Tech. Pvt. Ltd. Kirtiman Cement & Packaging Ind. Ltd. Rasandik Auto Components Pvt. Ltd. S. S. Udyog Shree Sita Ispat and Power Pvt. Ltd. ACE Engineering Infratech (India) Pvt. Ltd. Madhu Gupta & Associates Pvt. Ltd. Nirmal Polypack G. S. Motors Anuradha Timbers International Winjit Technologies Pvt. Ltd. National Cement Pipe Company Singhal Print Media Nandan Ground Support Equipment Pvt. Ltd. B. R. Designs Affine Steels Pvt. Ltd. Contec Airflow Engineers Pvt. Ltd. Ess Ess Engineers Durga Spinning and Weaving Mills Pvt. Ltd. Modern Communication & Broadcast Systems Adachi Paste Co. Siddhi Engineers Jayashree Cables and Conductors Pvt. Ltd. Dual Manufacturing Technologies Pvt. Ltd. Hiten Fasteners Pvt. Ltd. Ultra Dimensions Eastern Foods (P) Limited Overseas Health Care Pvt. Ltd. Naturals Dairy Pvt. Ltd. Universal Speciality Chemicals Pvt. Ltd. Sun Glass Works Pvt. Ltd. Shree Nandinee Fibre Glass Engineers Naathans Medi Devices Pvt. Ltd. Kamtress Automation Systems Pvt. Ltd. Raghvendra Cables & Wires Pvt. Ltd. Bird Machines Pvt. Ltd. Good Luck Publishers Limited Esses Eltech Systems Pvt. Ltd.

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401 403 405 407 409 411 413 415 417 419 421 423 425 427 429 431 433 435 437 439 441 443 445 447 449 451 453 455 457 459 461 463 465 467 469 471 473 475 477 479 481 483 485 487 489 491 493 495 497 499

Titan Leathers Pvt. Ltd. Meditron Screenotex Engineers Pvt. Ltd. Kala Auto-Tex A. F. Machine Tools & Company Shrimagal International Harshad Engineering Mona Engineering and Body Builders Kanwal Multilayer S. D. Industries BNK Modern Rice Mill Pvt. Ltd. Oriental Plants & Equipments Pvt. Ltd. Pravah Laboratories Pvt. Ltd. Perincheril Rubbers Durgapur Iron & Steel Company Pvt. Ltd. GSM Spuntex Pvt. Ltd. Luthra Engineering Works Sree Meghala Foundry Classic Papers Metal Shaping & Processing Pvt. Ltd. Senthil Dyeing Vibha Publication Pvt. Ltd. Sueeraa Alloys Global Pvt. Ltd. AVL Polytech Pvt. Ltd. Ratan Engineering Company Pvt. Ltd. Auro Flour Mills Pvt. Ltd. Electro Dip Khosla Precisions Rapid Engineering Company Pvt. Ltd. Turnwell Engineers Pvt. Ltd. Rajadhani Exports Agarwal Petrochem Pvt. Ltd. Flexible Hose Industries Western Marine Engineering Garrison Polysacks Pvt. Ltd. Nirmala Filaments (India) Pvt. Ltd. Mega Innovative Crops Pvt. Ltd. Priyanka Chemicals Pvt. Ltd. Chamundi Die Cast Pvt. Ltd. Loom Crafts Furniture (India) Pvt. Ltd. Unideep Food Processing Pvt. Ltd. Good Tight Fasteners Designtech Systems Limited Figure Control Equipment Neo Wires & Allied Products Pvt. Ltd. Calprin Ads Pvt. Ltd. Gits Food Products Pvt. Ltd. Radhe Enterprise Jayanti Cottex Neumatica Technologies Pvt. Ltd.

402 404 406 408 410 412 414 416 418 420 422 424 426 428 430 432 434 436 438 440 442 444 446 448 450 452 454 456 458 460 462 464 466 468 470 472 474 476 478 480 482 484 486 488 490 492 494 496 498 500

Atal Coach J. D. Sons Steels Pvt. Ltd. Skytone Electricals (India) Limited Rajasthan Agro & General Industries Kanha Biogenetic Laboratories Ganga R K Industries Pvt. Ltd. Hi -Tech Resigns & Coatings India International House Limited Farmax Health & Food Products Pvt. Ltd. Sita Polycoats Net Worth Controls Swan Electric Engineering Company Pvt. Ltd. Baba Ispat Pvt. Ltd. Modern Industrial Corporation Dharamshila Belting Pvt. Ltd. Fusion Electronics Kalpana Handmade Paper Industries Ratnagiri Ceramics Pvt. Ltd. Proficons Electronics Mfg. Co. Pvt. Ltd. Parida Workshop Chhinnmastika Track Industries Padmasree Enterprises Mode Creations International Pvt. Ltd. S Internationals Qualitech Precision Industries Jainson Labs Fine Metal Pressings Pvt. Ltd. Chennai Forge Products Pvt. Ltd. Gaja Shoes Surfa Coats Limited Kemit Chemicals Pvt. Ltd. New Man Exports Sumit Enterprises Vijay Industries Diamond Toys Company Pvt. Ltd. Sunder Nagar Int. Rural Dev Association Raksha Polycoats Pvt. Ltd. Dhawan Box Sheet Containers Pvt. Ltd. Santech Industries Electro Tech Engineers Sri Jyothi Industrials EIP Bulk Controls Pvt. Ltd. Indo Pump Renny Steels Vidarbha Auto Components Pvt. Ltd. Ganesh Engineering Works Bulk Liquid Solutions Pvt. Ltd. Manohar Electrodes Pvt. Ltd. SPM India Ltd. Sitra Infotech Pvt. Limited

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501 503 505 507 509 511 513 515 517 519 521 523 525 527 529 531 533 535 537 539 541 543 545 547 549 551 553 555 557 559 561 563 565 567 569 571 573 575 577 579 581 583 585 587 589 591 593 595 597 599

Veto Switchgear & Cables P Ltd Krishna Engineering Company Paliwal Home Furnishings Spark Creation SPG Plastics Southfield Paints Ltd Kumarpur Agro Poultries Limited OTTO Bushings Jindal Agro Processing Pvt. Ltd. Coods Agro Pvt. Ltd. Tharaj Castings Pvt. Ltd. Maldar Barrels Pvt. Ltd. New Swan Autocomp Pvt. Ltd. Unitek Power Solutions India Limited Gerchem Labs (India) Pvt. Ltd Bhavani Industries Sinicon Controls Pvt. Ltd. Ferrum Extreme Engineering Pvt. Ltd. Rashee Control Equipments Pvt. Ltd. Vig Furniture House Pvt. Ltd. Gautam Polymers Runa Chemicals Pvt. Ltd. Milestone Aluminium Company Pvt. Ltd. Max Precision Bearings Pvt. Ltd. Baimish Techno Systems Pvt. Ltd. Gondals Press India Ltd Akry Organics Pvt. Ltd. Benzy Food and Beverages Pvt. Ltd. K. B. Engineering Works M Plus CNC Tech Pvt. Ltd. Badamia Containers Newgen Specialty Plastics Ltd. Flameproof Equipments Pvt. Ltd. Vettoor Construction Engineers Geeta Machine Tools Pvt. Ltd. Goodluck Petroleum Company Pvt. Ltd. Shri Krishna Sudarshan Urja Pvt. Ltd. M. B. Bakers Pvt. Ltd. United Drilling Tools Limited Rajshanti Metals Pvt. Ltd. Batra & Batra Pvt. Ltd. DVL Auto Alliance Industries Vidya Metal Manufacturing Co Pvt. Ltd. Kasuma Auto Engineering Pvt. Ltd. Mutual Insulated Cables & Conductors Limited Vikas Metaliks and Energy Limited Hind Hydraulics and Engineers Ace Data Prinexcel Pvt. Ltd. Rava Engineering Corporation S. Thartius Engineering Contractors

502 504 506 508 510 512 514 516 518 520 522 524 526 528 530 532 534 536 538 540 542 544 546 548 550 552 554 556 558 560 562 564 566 568 570 572 574 576 578 580 582 584 586 588 590 592 594 596 598 600

Sonal Engineering Plastic Fabricators Electro Flux Equipments Pvt. Ltd. A K Industries Polyols & Polymers Sun Electro Control Systems Pvt. Ltd. Maa Tarini Products Shree M. L. Castings Pvt. Ltd. Devashish Infrastructure Private Ltd. Fresco Paints Pvt. Ltd. Flower Garments Tanishq Wire & Conductors Pvt. Ltd. C.M.S. Balan & Co. Patni Sheet Griha Pvt. Ltd. Taurus Bio Medical Aids Pvt. Ltd. Ratnamani Biochemicals & Pharma Pvt. Ltd. Steel Art Industries Rams Assorted Cold Storage Ltd Mec Shot Blasting Equipments Pvt. Ltd. Aditya Power Devices Standard Transformers Pvt. Ltd. Ace Hardware Pvt. Ltd. Standard Welds Pvt. Ltd. Real Time Engineering Pvt. Ltd. Labindia Instruments Pvt. Ltd. Srinivasa Engineering Works Aagam Food Industries Shree R N Metals India Pvt. Ltd. Oscar Equipments Pvt. Ltd. Eppeltone Engineers Allied Recycling Limited Sri Sati Aranjyothi Raw and Boiled Rice Mill Gogad Fabrics Pvt. Ltd. Maksi Consultech Limited Guru Detergents & Chemicals Pvt. Ltd. Riddhi Technologies Pvt. Ltd. Chemi Plant Engineering Company Anmol Traders Thapar Hosiery Mills Pvt. Ltd. Aiwin Garments Choudhary Offset Pvt. Ltd. Hindustan Rubber Products Sri Veera Venkata Satyanarayana Rice Mill P.P. Industries Jagdamba Ginning Factory Sunglow Engineering (India) Pvt. Ltd. Unimet Profiles Pvt. Ltd. Suncity Art Exporters Akanksha Automobiles Pvt. Ltd. Ideal Textiles R.B. Forgings Pvt. Ltd.

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SMS Scientific Products Pvt. Ltd. Shree Mahadeo Cotton Mills Limited Vishivkarma Industries Pvt. Ltd. Sidharth & Gautam Engineers Neelay Industries Grand Marine Foods Ind Fab Engineering Precimax Engineers Limited Nav Bharat Rice Industries Kavcon Engineers Pvt. Ltd Zenith Die Makers Pvt. Ltd. Saboo Alloys Pvt. Ltd. Osper Formulations Kloride Kem Saboo Ispat Pvt. Ltd. Raj Ratan Castings Pvt. Ltd. Udaya Industries Urs Kar Services Centre Pvt. Ltd. Bevel Gears (India) Pvt. Ltd. Maruti Electric Company Precision Granites Pvt. Ltd. Methods (India) Pvt. Ltd. Harshvardhan's Laboratories Pvt. Ltd. Perfect Acid Wares Pratima Hosiery Vastra Udyog VSPN Packing Industries Astha Beej Company Pvt. Ltd. Jai Jagdambey Ceramics Popsons International Bajrang Glass Emporium Raman Ispat Pvt. Ltd. Ons Engineering Works Elecon Conductors Limited Rational Engineers Pvt. Ltd. Sri Balaji Forgings Pvt. Ltd. Surya Cables Periwal Irrigations Pvt. Ltd. Paragon Autotech Products Pvt. Ltd. Somex India Bhiwadi Cylinders Pvt. Ltd. Shree Hari Products Murliwala Agrotech Pvt. Ltd. Bohra Agrifilms Pvt. Ltd. Shree Ganesh Udhyog Mittal Chemicals Krishna Associates Maam Arts Vel Tech Engineering Works Shree Engineering Airflow Equipments India Pvt. Ltd.

602 604 606 608 610 612 614 616 618 620 622 624 626 628 630 632 634 636 638 640 642 644 646 648 650 652 654 656 658 660 662 664 666 668 670 672 674 676 678 680 682 684 686 688 690 692 694 696 698 700

Manu International Eagleman Enterprises Somakanth Multi Tech Pvt. Ltd. [Link] & Suppliers Pvt. Ltd. Sri Durga Systems Pan Overseas Nova Industries Pvt. Ltd. Captronic Systems Pvt. Ltd. Modern Transformers Pvt. Ltd. Sarv Biolabs Pvt. Ltd. SBS Biotech Nano Kernel Limited Makar Electronics Pvt. Ltd. Therelek Engineers Pvt. Ltd. Ace Media Solutions Pvt. Ltd. Parshvanath Filaments Kipps Confectioners (Private) Limited Arun Enterprises D. S. Rice & Cold Storage Pvt. Ltd. Bright Star International Bhoomika Garments Pvt. Ltd. Arpit Plastics Pvt. Ltd. Universal Products Pvt. Ltd. SH Deco Creations Pvt. Ltd. Jepika Paints Pvt. Ltd. Askas Plastic Pvt. Ltd. Supreme Engineering Works Pure Pharma Limited Major Footwears Pvt. Ltd. Power Electricals & Electronics Industrial Filters and Fabrics Pvt. Ltd. Pro Laboratories Pvt. Ltd. H. D. Wires Pvt. Ltd. Shilpachem Siddharth Offsets Durrant Packers (India) Pvt. Ltd. Bajrang Agro Industries Pvt. Ltd. Saishiv Boards & Tops Pvt. Ltd. Pragati Plastic Industries Chino Corporation India Pvt. Ltd. Sree Masarada Ores & Forgings Pvt. Ltd. Maheshwari Mining Pvt. Ltd. Carnation Industries Limited Zest Pharma Lordsons Agro Overseas Pvt. Ltd. Satguru Colour Labs Pvt. Ltd. Smiko Equipments Pvt. Ltd. Ruchi Printers Raag Exports Pvt. Ltd. Saurabh Metals Pvt. Ltd.

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Lord Balaji Enterprises S J Industries Artistic Artforum Pvt. Ltd. Better Labels Mfg. Co. Pvt. Ltd. Bhilai Engineering Works Accurate Industries Softjin Technologies Pvt. Ltd. Engineering Plastics Srishti Software Applications Pvt. Ltd. Krishna Constructions Vatsala Metal Sections Rana Milk Foods Pvt. Ltd. Prakasa Spectro Cast Pvt. Ltd. Surya Industrial Equipments INAR Profiles Pvt. Ltd. Sree Comfortables Pvt. Ltd. Srilakshmi Satyanarayana Raw Boiled Rice Mill Salicylates and Chemicals Pvt. Ltd. Apollo Computing Laboratories Pvt. Ltd. Tirupati Veneers Pvt. Ltd. Finecab Wires and Cables Pvt. Ltd. Sai Bhargavi Solvent Oils Pvt. Ltd. Krishna Teja Food Products Akhil Fab C. P. Exports Madras Metal Impregnations Shree Jayaganesh Mills Abhilash Chemicals Pvt. Ltd. Discovery Overseas HI-Tech Bitumen Products Aargee Equipments Pvt. Ltd. S.S.P. Prnt Packs KPSK Textiles Pvt. Ltd. Sri Lakshmi Metal Mahabir Cold Storage Pvt. Ltd. Mac Power Steels Tristar Formulations Pvt. Ltd. Lotus Knits Aviram Knitters KCP Sixvell Power Systems Chillies Export House Limited Anartex Exports Karmen International Pvt. Ltd. Kalpaka Chemicals Pvt. Ltd. Nirmal Pumps Pvt. Ltd. Varun Fibre Product R. M. H. Fabrications Pvt. Ltd. V.V.V & Sons Edible Oils Limited A. R. Dairy Food Pvt. Ltd. Sri Amaravathi Spinning Mills

702 704 706 708 710 712 714 716 718 720 722 724 726 728 730 732 734 736 738 740 742 744 746 748 750 752 754 756 758 760 762 764 766 768 770 772 774 776 778 780 782 784 786 788 790 792 794 796 798 800

Farm Electronics S & G Engineers Pvt. Ltd. IMT Cables Pvt. Ltd. Afflatus International Web Tech Engg Pvt. Ltd. Shramanji Fabrics Pvt. Ltd. Ambika Overseas Prince Rubber Industries National Trading Company Bansal Iron and Steel Rolling Mills Mahashakti Energy Limited Integra Micro Systems Pvt. Ltd. Sweans Technologies Pvt. Ltd. Sree Venkateswara PVC Pipes Sark Cables Pvt. Ltd. Electro Tech Industries South India Gold Refinery Pvt. Ltd. Kelvin Business Forms(P) Ltd. Pure Petrochem India Pvt. Ltd. C2C Engineering Dharmaa Tex Jayashree Metal Casters Pvt. Ltd Sri Balaji Spinning Mills Sai Sagar Bewerages Pvt. Ltd. Sai Shakthi Infratech Limited Dura Puf Silvassa Pvt. Ltd. Fantasy Enterprises Mandovi Drydocks Rank Enterprises Lead Acid Battery [Link]. Ltd. Uluberia Coke Oven Plant La-Chemico Pvt. Ltd. Shanker Coils Pvt. Ltd. Sar Exports Veejay Impex Bright Engineering Works Raj Finoxides Pvt. Ltd. Yantrique Construction Pvt. Ltd. Kheria Industries Pvt. Ltd. Chiranjilal Rayons Pvt. Ltd. Vahe Guru Engineering Works Pinkto Chemicals Frank Chemicals India Pvt. Ltd. Ark Golden India Pvt. Ltd. SRD Nutrients Pvt. Ltd. D S Polypack Industries Luit Coal Products Pvt. Ltd. Aasray Concept Foods Ramgarh Casting Maihar Alloys Pvt. Ltd.

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801 803 805 807 809 811 813 815 817 819 821 823 825 827 829 831 833 835 837 839 841 843 845 847 849 851 853 855 857 859 861 863 865 867 869 871 873 875 877 879 881 883 885 887 889 891 893 895 897 899

Triemphs Hydro Products Industrial Rubber Products Stat Coat Systems Premier Paper Packaging Veekay General Industries Kesara Syntex Pvt. Ltd General Industries Lunar Rubbers (P) Ltd. Jaimatha Estates Victoria Polyform Manasi Initiatives R M Minerals Pvt. Ltd Sunrise Enterprises Nikko Auto Ltd Batra Art Press United Gears Chauhan Papers Pvt. Ltd A P Processors PulseMagnetic & Power Electronic Pvt. Ltd Veeco Earthmovers Pvt. Ltd. Systems & Services Astor Inc. DEE & SETT Kaila Engineering Works Limitorque India Ltd. Sai Smaran Foods Limited Vinod Rice Mill Pvt. Ltd. Ram Sarup Sunil Kumar Rice Mill Jai Forgings & Stampings Pvt. Ltd Master Automech Pvt. Ltd P.A.R.K. Non Woven Pvt. Ltd Paramount Forge K N S Engineering Works Pvt. Ltd. Poornima Printers KMS Coach Builders Pvt. Ltd. Radiant Info Systems Limited Ascott Electricals Pvt. Ltd S. S. Fasteners Pvt. Ltd Shree Dhanwantri Herbals IEC Fabchem Limited Motherland Garments Pvt. Ltd Siguru Exports Bharat Electrotech Pvt. Ltd. Suncity Ceramics Siyaram Metals Pvt. Ltd. Shivanand Polymers Shiv Sagar Rice Mill Pvt. Ltd. Banshi Airgases Pvt. Ltd Noble Gas Limited

802 804 806 808 810 812 814 816 818 820 822 824 826 828 830 832 834 836 838 840 842 844 846 848 850 852 854 856 858 860 862 864 866 868 870 872 874 876 878 880 882 884 886 888 890 892 894 896 898 900

Deepshikha Paper Pvt. Ltd. Kritika Enterprises Amar Engineering Works Sava Enterprises A P Polyplast Pvt. Ltd United Manufacturing Company Shriram Offset Printers Kings Furnishing & Safe co R B Enterprises International Pvt. Ltd. Indees Food Industries Transal Wires Basith Exporters Age Industries Pvt. Ltd. KTC Automobiles Pvt. Ltd. Herbindus Labinduss Limited Con Weigh Systems Pvt. Ltd. Rajan Wire Industries Jishnu Pharmaceuticals Pvt. Ltd Accurate Auto Products Pvt. Ltd ARC Machine Tools Pvt. Ltd APS Engineers Brawn Laboratories Ltd Viking Engineers Pvt. Ltd Eee & Cee Pressings Pvt. Ltd Sre Dhanvijay Textile Pvt. Ltd Hospitech Industries Inventa Cleantec Pvt. Ltd. Auto & General Casting Pvt. Ltd Midas Foods India Pvt. Ltd Dutta Press KPC Flexitubes Meditek Engineers R. K. Engineering Industries Natural Capsules Limited Karthik Toolings Safe Systems India Pvt. Ltd. Bright Metal Finishers The Sun Cranes & Hoists Dogra Hosiery Hitech Lamination Films Pvt. Ltd Sree Anand Jewellers SVS Ceramics Shaanta Udyog Kavan Cotton Industries Galaxy Conveyors Pvt. Ltd. Evershine Metals Hi - Speed Offset Rakhi Polymer Pankaj Ferro-Tech Pvt. Ltd.

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Rourkela Construction Pvt. Ltd Noah Fashions Shreeji Gold Ceramic Pvt. Ltd Savera Packers Pulkitt Steel Rolling Mills Sunbeam Generators Pvt. Ltd Gauthami Pipes Ranjana Poly Prints Pvt. Ltd. Famica Press Industries Pvt. Ltd. Kunj Alloys Pvt. Ltd Kalinga Jute Products Pvt. Ltd. Susama Boards Pvt. Ltd Sadanand Alloy Steel Pvt. Ltd Esha Apparels Shantanu Engineering Manghani Re-Rolling Limited Neha Enterprises Jai Plastech Pvt. Ltd Vinyas Innovative Technologies Pvt. Ltd Mangalore Minerals Pvt. Ltd Jayshree Enterprises Darshan Packagings Chak Rader Farm Equipments Pvt. Ltd Abharan Motors Pvt. Ltd Hi-Tech Forgings Pvt. Ltd Priyanka Refineries Pvt. Ltd. R. N. Pulverisers Pvt. Ltd. RKR Gold Pvt. Ltd. Fitz Fashion Luit Refractories Pvt. Ltd. Shree Krishna Wire Products Annapurna Plastics Nigam Food Processor B. L. Packaging Pvt. Ltd. Flexi Multi Products and Services Pvt. Ltd. KCS Pvt. Ltd. Technocrat Enterprisers Shanti Chemical Works Amutham Fabric K Venkatraman and Company Paru Engineers Pvt. Ltd Shree Vasavi Exports GRT Enterprises IPA Private Ltd. Intelux Electronics Pvt. Ltd. M. K. Industries Thermosystems Pvt. Ltd. R. S. Factory Anuvi Chemicals Limited C L Engineering Ltd

902 904 906 908 910 912 914 916 918 920 922 924 926 928 930 932 934 936 938 940 942 944 946 948 950 952 954 956 958 960 962 964 966 968 970 972 974 976 978 980 982 984 986 988 990 992 994 996 998 1000

Galaxy Medicare Pvt. Ltd Module Engineering Co. T G Industries Raksha Cement Pvt. Ltd Supreme Plasto Containers Pushpit Steels Pvt. Ltd. Hycount Plastics & Chemicals Prakash Engineering Company A. B. Imaging & Prints Pvt. Ltd Aeon Medical Pvt. Ltd Kalinga Equipments Shivam Chemicals Bhagwati Plastic & Pipe Industries Manghani Re-Rolling Limited Gopal Feeds Laxmi Polytex Pvt. Ltd Print-N-Pack Pvt. Ltd Alufit (India) Pvt. Ltd. Kamath Transformers Pvt. Ltd. Model Heavy Fabrications Pvt. Ltd. Rasayan Udyog Plus-one Machinefabrik Sri Lakshmi Venkata Narayana Rice Indus. Sindhu Plastics Jaya Bharat Equipments Pvt. Ltd. Life Line Feeds (India) Pvt. Ltd. D.S. Metals Pvt. Ltd. V S Engineering Jai Raj Industries Net Metallics Maruti Battery Industries Jakpod Garments Everassam Tea Pvt. Ltd. Chaika Polymers Pvt. Ltd. Muva Industries Limited Seacrafts Industries Pvt. Ltd. Dash Engineering Works Bhawani Polymers Ever Bright Products Prithvi Wood Doors Sapy Bedding Products Adhi Sakthi Projects Figure Control Equipment Shiv Mahima Ispat Pvt. Ltd. Sun Tech Automation Teknix Wintech Pharmaceuticals K L Tech Solution Pvt. Ltd Sudhamayi Quality Foods Pvt. Ltd. Rupam Enterprises

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1001 1003 1005 1007 1009 1011 1013 1015 1017 1019 1021 1023 1025 1027 1029 1031 1033 1035 1037 1039 1041 1043 1045 1047 1049 1051 1053 1055 1057 1059 1061 1063 1065 1067 1069 1071 1073 1075 1077 1079 1081 1083 1085 1087 1089 1091 1093 1095 1097 1099

K E C Industries Ltd Envogue Wood Working Pvt. Ltd. VRL Automation Pvt. Ltd. L.R. International Pvt. Ltd. Prompt Industries Pvt. Ltd. GDP Engineering Company Girnar Corrugators Pvt. Ltd. Navkar Industries Excel Plinmoc Industries S.B. Electronic Industries Nippy Chemicals Max International Singhson International Pvt. Ltd. Gujarat Intrux Limited Yash Electrical Systems Zedex Clothing Pvt. Ltd. Travancore Cocotuft Pvt. Ltd. A. L. Coldforge Pvt. Ltd. Shree Vardhman Industries [Link] Limited Mehr Cements [Link] Sansar Dall Mills Vibfast Pigments Pvt. Ltd. Anil Plywoods Samruddhi Engineering Nutan Dye Chem Kankariya Techno Screens Pvt. Ltd. G R Soni Metal Industries Santro Ceramics Mahadev Manufactures Signor Polymers Pvt. Ltd. Tas Foundries Pvt. Ltd. Raj Polymers XL Plastics Raj Plastic Industries Siddharth Industries Gopinath Chem Tech Ltd Bengani Udyog Pvt. Ltd. G One Agro Products Ltd Balkrishna Steel Forge Pvt. Ltd. Tulsi Digital Colour Lab Pvt. Ltd. Avadat Trading Pvt. Ltd. Anjalee Jewellers India Pvt. Ltd. Khedut Solvexp Pvt. Ltd. Kody Equipments Pvt. Ltd. Amit Conductors EL-Lighting Industry Kshipra Drugs Pvt. Ltd. Mahalaxmi Coal Pvt. Ltd. Mangala Engineering Ltd.

1002 1004 1006 1008 1010 1012 1014 1016 1018 1020 1022 1024 1026 1028 1030 1032 1034 1036 1038 1040 1042 1044 1046 1048 1050 1052 1054 1056 1058 1060 1062 1064 1066 1068 1070 1072 1074 1076 1078 1080 1082 1084 1086 1088 1090 1092 1094 1096 1098 1100

Lancer Pharmaceuticals Pvt. Ltd. Tulsi Rubber Products Pvt. Ltd. Wilhelm Textiles India Pvt. Ltd. Activ Personal Care Products Pvt. Ltd. Micro Plastics [Link] Narayani Coke Pvt. Ltd. Raghavendra Industries National Packaging Company Bhagat Industry Rajvansh Polymers Pvt. Ltd. Sapthagiri Power Technologies Pvt. Ltd. Sameer Linkages (Exports) Private Ltd VSN Plas-Pak Singhal Spintex Pvt. Ltd. Foremost International Pvt. Ltd. Esdee Paints Ltd UMA Packaging Co. Apex Overseas China Herbals Basu Enterprises Shree Guru Kripa Cement Pvt. Ltd. Shivam Packers Star Industries S.R. C. Embroideries Bharat Fab Tax GNE Exports Pvt. Ltd. Twenty First Century Steels Ltd Shreyans Oils Ltd. Brij Rice Mills Euro Forge Margaret Package Pvt. Ltd. Srinivasa Plastics Dynagrafix Label Pack Systems Bharath Circuits Pvt. Ltd. Laasma Power Pvt. Ltd. A.V. Engineering Bathla Aluminium Pvt. Ltd. Buildmet Fibres Pvt. Ltd. Hydropack India Pvt. Ltd. P. M. Granite Export Pvt. Ltd. Modern Flour Mills North East Kraft Paper Bag Mfg. Meria Foods Global Foods Ken Bag Industries Sparsh Agro -Pro Pvt. Ltd. Bharat Engineering Works Ornate Ispat Pvt. Ltd. Sunshine Power Products Pvt. Ltd. Ashirwad Foundries Pvt. Ltd.

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1101 1103 1105 1107 1109 1111 1113 1115 1117 1119 1121 1123 1125 1127 1129 1131 1133 1135 1137 1139 1141 1143 1145 1147 1149 1151 1153 1155 1157 1159 1161 1163 1165 1167 1169 1171 1173 1175 1177 1179 1181 1183 1185 1187 1189 1191 1193 1195 1197 1199

Rishabh Cotton Processers Pvt. Ltd. Energy Equipments Reliable Transformers Patna Offset Press Bihar Cyllinders DSK Polymer Sri Pachiyamman Textiles Matha Timber Industry Jai Bharath Tanners Newtech Industries Thrinethra Engineering Industries Legend Technologies (I) Pvt. Ltd. K. S. Motors Pvt. Ltd. Biogenetic Drugs Pvt. Ltd. Kwality Tubes and Capillaries Precision Metals Danish Pvt. Ltd. Panchal Machinery Technofab Engineers Agrawal Industries Ridhi Sidhi Glasses (India) Pvt. Ltd. Dynasty Modular Furnitures Pvt. Ltd. M P K Steels I Pvt. Ltd. Kairav Chemofarbe Industries Ltd Ajay Industries ADK Corporation S K Nabi & Co Universal Hoist O Fabrik Emkay Tools Taps & Cutting Tools Pvt. Ltd. Span Engineers Savitri Automation Amarnath Ispat Pvt. Ltd. Cosmos Ispat Pvt. Ltd. Precision Engineering Corporation Shri Dhaniram Laminates Pvt. Ltd. J. S. Strips Pvt. Ltd. Thermocare Rockwool India Pvt. Ltd. Nandani Medical Laboratories Pvt. Ltd. Signet Rubber (India) Pvt. Ltd. Dee Tee Industries Limited Engipress Industries Limited Kakda Rolling Mills Anupam Enterprises Mittal Iron Foundry Ltd. Sri Sowbarnika Tex Safetab Life Science Vertex Laminate Pvt. Ltd. Rajhans Impex Pvt. Ltd. Miles Motors Pvt. Ltd. Kishan Autoparts Limited

1102 1104 1106 1108 1110 1112 1114 1116 1118 1120 1122 1124 1126 1128 1130 1132 1134 1136 1138 1140 1142 1144 1146 1148 1150 1152 1154 1156 1158 1160 1162 1164 1166 1168 1170 1172 1174 1176 1178 1180 1182 1184 1186 1188 1190 1192 1194 1196 1198 1200

Devikripa Trading Pvt. Ltd. Megacity Cement Pvt. Ltd. OGN Industries Max-Grip Fasteners Pvt. Ltd. Vitarich Agro Food (India) Limited Samrudh Pharmaceuticals Pvt. Ltd. Prasol Chemicals Limited Mahacot Textiles Pvt. Ltd. Radhey Forgings Pvt. Ltd. Fyaro Transformers Amrit Frozen Foods Pvt. Ltd. Ayurlabs Herbals Pvt. Ltd. Shashaank Apparels Kalpaka Plastics Pvt. Ltd. Mangala Ispat Limited Jainsons Industries Cold Steel Corporation WMW Metal Fabrics Limited Supriya Chemicals Neelesh Engineers S R Forms Gyro Laboratories Pvt. Ltd. M P Shah Bright Bars Pvt. Ltd. H R M Chemicals Pvt. Ltd. Bhilai Auxiliary Industries Jaiswal Equipment and Holdings Pvt. Ltd. Shree B. R. Steels Jai Ambey Metal Works Pvt. Ltd. Dutta Engineering Works Atharva Infrastructure Chhattisgarh Ferro Trades (Unit II) Ashpra Textiles Pvt. Ltd. Dev-Shesha Auto Industries Innova Plastic Technologies Pvt. Ltd. Geecy Industrial Service Pvt. Ltd. Charmi Enterprises Century Engineers Kiran Floorings Pvt. Ltd. Sterling Inflow Tech Pvt. Ltd. Siddhartha Logistics Co Pvt. Ltd. Praveen Wires Pvt. Ltd. Calcutta Electrodes Pvt. Ltd. Lupin Gases Pvt. Ltd. Krishna Iron Strips & Tubes Pvt. Ltd. G M Enterprises Unix Biotech Hanuchem Laboratories Maja Health Care Division Associated Biotech Navdeep Bioceuticals

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1201 1203 1205 1207 1209 1211 1213 1215 1217 1219 1221 1223 1225 1227 1229 1231 1233 1235 1237 1239 1241 1243 1245 1247 1249 1251 1253 1255 1257 1259 1261 1263 1265 1267 1269 1271 1273 1275 1277 1279 1281 1283 1285 1287 1289 1291 1293 1295 1297 1299

Kishan Forge Pvt. Ltd. Parts & Spares Venus Fibers Pvt. Ltd. Confisec Printers Asian Food Industries Gold Star Battery Pvt. Ltd. Infab Infrastructure Pvt. Ltd. Shree Chlochem Ltd Friends Forgings Pvt. Ltd. Industrial Forge & Engg Co Ltd Jharkhand Grind Chem Pvt. Ltd. Highco Engineers Pvt. Ltd. Pumps & Valves Unitherm Inductoweld (India) Pvt. Ltd. Alert India Pvt. Ltd. Design Quest M B Rubber Pvt. Ltd. Skylark Dyeing Pvt. Ltd. Gateway Papers Pvt. Ltd. H B Rubber Pvt. Ltd. Bonny Polyplast Pvt. Ltd. Himachal Polymers Pvt. Ltd. Shree Vardhman Knityarn Pvt. Ltd. Ghaziabad Ispat Udyog Ltd Dev Pharmacy Pvt. Ltd. Suruchi Foods Pvt. Ltd. Eskag Pharma Pvt. Ltd. Gitanshi Polychem Pvt. Ltd. Pooja Metal Processors Pvt. Ltd. Prem Industries Kanicka Synthetic Silica Products Indo Mech Engineers Sunder Industries Shree Jee Ispat Laxmi Packaging Company B. P. Agro Chemicals Royal Engineering Enterprises North East Products Lloyds Pharmaceuticals Indian Pharmaceuticals Jyoti Cero Technocrats Pvt. Ltd. Shiv Forging Madonna Industries Anglo Cycles Pvt. Ltd. Maxpro Networking Pvt. Ltd. Sara Industries Sanjay Technical Services Pvt. Ltd. Sanghavi Engineering Thiru Pharmaceuticals

1202 1204 1206 1208 1210 1212 1214 1216 1218 1220 1222 1224 1226 1228 1230 1232 1234 1236 1238 1240 1242 1244 1246 1248 1250 1252 1254 1256 1258 1260 1262 1264 1266 1268 1270 1272 1274 1276 1278 1280 1282 1284 1286 1288 1290 1292 1294 1296 1298 1300

Iftex Oil & Chemicals Ltd Ping Telematics Pvt. Ltd. Tirubala Exports Tara Art Printers Pvt. Ltd. Sunder Silk Mills Pvt. Ltd. Asian Timber Estates Sunbeam Industries Jay Tee Fastners S B Electrical Enterprises Marion Biotech Pvt. Ltd. Horological Components Pvt. Ltd. Uniline Energy System Pvt. Ltd. Effective Marketing Pvt. Ltd. Murarka Biscuits Pvt. Ltd. Dillip Constructions Pvt. Ltd. Ani Engineers Perfect Print & Graphics Pvt. Ltd. Tara Glass & Silicate Work Shree Om Metals Ltd Gupta Plastics Swastika Oil Mill Chirag Sanitary Products Bangal Cable Industries Perteek Engineering Works Jhunsons Chemicals Kay Tent Industries B.N. Forging S. S. Safety Products Industrial & Farm Equipment Co Navyug Industries Excel Pack Ltd Rukmini Iron Pvt. Ltd. D R Johns Lab Pvt. Ltd. R V International Ishan Textile Mills Ltd JTG Alloys Pvt. Ltd. Charisma Goldwheels Pvt. Ltd. Sona Woollen Mills Pvt. Ltd. Gurucharan Fastners Ram Lal & Sons Jain Shawls Hazaribag Rice Mills Pvt. Ltd. Sankat Mochan Rice mills Pvt. Ltd. Shruti Filters Lalit Constructions Billwin Industries Supreme Dye Chem Nasik Metaldust Pvt. Ltd. Lighting Engineers Asian Controls & Equipments

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1301 1303 1305 1307 1309 1311 1313 1315 1317 1319 1321 1323 1325 1327 1329 1331 1333 1335 1337 1339 1341 1343 1345 1347 1349 1351 1353 1355 1357 1359 1361 1363 1365 1367 1369 1371 1373 1375 1377 1379 1381 1383 1385 1387 1389 1391 1393 1395 1397 1399

Midas Biotek Pvt. Ltd. Bhavika Plastek Pvt. Ltd. Discovery Intermediates Pvt. Ltd. Industrial Metal Powders (India) Pvt. Ltd. Innotech Auto India Pvt. Ltd. Gnat Foundry Pvt. Ltd. Nitiraj Engineers Pvt. Ltd. Zeemag Industries Aquachem Enviro Engineers Pvt. Ltd. Shrikrishna Khandsari Sugar Mills Abigail Enterprises Permeshwar Fashions Impex Pvt. Ltd. Hassan Brothers Arihant Polysacks Metal Moulding & Pressing Works Rainbow Plastics India Ltd Rsj Ispat Pvt. Ltd. ABNM Restaurant Pvt. Ltd. Bengal Tools Ltd Bally Exports Pvt. Ltd. Sentinel Chemical Industries Promis Industries Grind Chem Hindustan Forge Shri Nursingh Paper and Oil Mill Pvt. Ltd. Perfect Boring Pvt. Ltd. Shyam Industries Milin Tubes Ikon Multipack Devson Insulators Pvt. Ltd. Ultramax Hydrojet Pvt. Ltd. Sri Balamurugan Modern Rice Mill Prakash Woven Pvt. Ltd. Sai Lakshmi Milk Products Sunshine Fasteners Pvt. Ltd. Solus Software & Systems Pvt. Ltd. Transpower India Electronics Pvt. Ltd. Abhishek Enterprises Moraya Global Ltd. Techweld Industries C. N. Fabricators Power Electronics Western Engineering Co. Leak Proof Engineering (India) Pvt. Ltd. Power Cable Industries Homa Engineering Works Manik Machinery Mfgrs. P. Ltd. Sree Siddarameshwara Agro Industries Metallurgy Collaboration Western Metaflux Pvt. Ltd.

1302 1304 1306 1308 1310 1312 1314 1316 1318 1320 1322 1324 1326 1328 1330 1332 1334 1336 1338 1340 1342 1344 1346 1348 1350 1352 1354 1356 1358 1360 1362 1364 1366 1368 1370 1372 1374 1376 1378 1380 1382 1384 1386 1388 1390 1392 1394 1396 1398 1400

N. K. Engineers & Contractors Our's Studio & Production Kritika Vegetable Oils Pvt. Ltd. Rajshree Instruments Pvt. Ltd. Rasika Fabricators Colour Tex Euroline International Sree Sundara Mills Arasan Company Firm Vigneshwari Textiles Laxmi Plastic Industries Valsons Fabricators S. S. B. Metal Works Accutech Engineering Pvt. Ltd. RICO Industries Parason Machinery (India) Pvt. Ltd. Castall Industries Process Masters Equipment (I) Pvt. Ltd. Rainproof Exports Pvt. Ltd. Maa Ashish Textiles Industries Pvt. Ltd Super Engineers Mega Engineering Pvt. Ltd. Maximum Synthetics Pvt. Ltd. Latiyal Handicrafts Pvt. Ltd. Shivam Coke Pvt. Ltd. Skipper Electricals (India) Limited Jain Enterprises Pvt. Ltd. Bhawani Silicate Industries B S Tar Pvt. Ltd. Rasi Electrodes Limited Mahavir Construction Company Suddha Engineers Bharat Cattlefeed Industries Hayward Synthetics Pvt. Ltd. Hetpan Overseas Cal Lite Foods (India) Pvt. Ltd. Srinivasa Hair Industries Visakha Wire Ropes Limited Vineet Laboratories Pvt. Ltd. Maruthi Ceramics Pvt. Ltd. Wisdom Steeltech Pvt. Ltd. Satya Surya Aluminium Industries Limited Lakshmi Srinivasa Rice Mills Pvt. Ltd. Sukhsagar Ceramics Pvt. Ltd. Sri Vijaya Lakshmi Rice Industries R.C. Das Engineering Pvt. Ltd. Alok Textile Mills Pvt. Ltd. Maruti Interior Products Pvt. Ltd. Laksh Venture Pvt. Ltd. Alliance Fibres Limited

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1401 1403 1405 1407 1409 1411 1413 1415 1417 1419 1421 1423 1425 1427 1429 1431 1433 1435 1437 1439 1441 1443 1445 1447 1449 1451 1453 1455 1457 1459 1461 1463 1465 1467 1469 1471 1473 1475 1477 1479 1481 1483 1485 1487 1489 1491 1493 1495 1497 1499

Bharatiya Plastic Products Perfex Impex Pvt. Ltd. Pavai Alloys and Steels Pvt. Ltd. Vasu Yarn Mills India Pvt. Ltd. Suryabala Autos Pvt. Ltd. United Polyfab Pvt. Ltd. Vinod Fabrics Pvt. Ltd. New Kishan Cement Pvt. Ltd. Jaydeep Cotton Fibres Pvt. Ltd. Anmol Chemicals (Gujarat) Pvt. Ltd. Adamant Packers Pvt. Ltd. Advancetek India Shashwat Cables Pvt. Ltd. Uttaranchal Industries Pvt. Ltd. Dynamic Power Services Sign+ Printing and Packaging Wood Spot Kaveri Tubes Hipro Moulding Industries Hiral Labs Limited Jhelum Industries Shiva Steel Rolling Mills Sviss Labss Limited MBG Rice Mills Aadhaar Seeds Pvt. Ltd. Gaviranga Engineering Works Chandra Engineering Works Gupta Electrical Industries Sheeyal Engineering Services Zade Rice Mill Sanyog Engineers Sanjit Moulds Pvt. Ltd. Shekhani Engineering Works Industrial Glass Company Aruna Trading Company North East Rolling Mill Pvt. Ltd. Kangleipak Spices Industry Anand Coir Foam Jammu Pvt. Ltd. Ethicare Laboratories Tawi Chemicals Industries Gee's Industries Kaushik Udyog Ltd. Silverton Metals Pvt. Ltd. Auropol India Pvt. Ltd. Bhagatjee Steels Pvt. Ltd. Teletronic Products Pvt. Ltd. House Bricks Creative Engineering Industries Kaushal Industries Mechatronics

1402 1404 1406 1408 1410 1412 1414 1416 1418 1420 1422 1424 1426 1428 1430 1432 1434 1436 1438 1440 1442 1444 1446 1448 1450 1452 1454 1456 1458 1460 1462 1464 1466 1468 1470 1472 1474 1476 1478 1480 1482 1484 1486 1488 1490 1492 1494 1496 1498 1500

Sadguru Cotton Pvt. Ltd. S.C Engineering Co. Pvt. Ltd. Woodstock Laminates Limited Renny Steels Maxtar Bio - Genics Tirupati Aluminium Limited Wincare Remedies Garg Gas Appliances Pvt. Ltd. Surya Home Appliances Care Office Equipment Limited Samanjas Udyog Pvt. Ltd. Essen Multipack Ltd Fieldman Engineers Pvt. Ltd. Vinayak Ginning & Pressing Factory Shamal & Shamal Pvt. Ltd. Bright Metasteel Pvt. Ltd. Vimal Agro Products Pvt. Ltd. Nelco Ceramics Shree Patel Industries Shree Patel Industries Unit-III Synwave Industries Rama Overseas Ltd Solid Ply Pvt. Ltd. S. S. Engineering Works Vikas Industrial Corporation Vijaya Energy Equipments Shyam Dhani Industries Goel Rice Mills Balaji Cement Industries Standard Seeds Company Golden Global Furniture Rajpura Tin Manufacturing Company Saroj Enterprises Pvt. Ltd. Necta Fresh Agro Foods Bhojpur Rice Mills Pvt. Ltd. Reform Tools Pvt. Ltd. Roger Industries Limited Ashutosh Metal Pvt. Ltd. Silver Proteins Pvt. Ltd. United Heat Transfers Pvt. Ltd. Parag Gases & Chemicals Pvt. Ltd. Jaks Plast Products Pvt. Ltd. Scope T & M Pvt. Ltd. Super Packers Eric Apparel Pvt. Ltd. JMD Engineering Graham Blowpack Pvt. Ltd. Sankh Care Craft Circles & Components Delton Industries

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1501 1503 1505 1507 1509 1511 1513 1515 1517

Mahajan Wire Products Modern Whiteners Pvt. Ltd. J K Card Board Industries Gulati Metal & Alloys East Coast Acetylene Pvt. Ltd. MMT Polypacks Pvt. Ltd. Galaxy Conveyors Pvt. Ltd. Amko Exports United Engineering Services

1502 1504 1506 1508 1510 1512 1514 1516 1518

Noble Industries Command Polymers Pvt. Ltd. Megacity Iron Pvt. Ltd. Avon Tubetech Pvt. Ltd. M/s Anand Metals (India) Sudhakaran Nair & Company Private Ltd Rollform Equipment Pvt. Ltd. Sumax Enterprises Pvt. Ltd. Multiplast Polymer Pvt. Ltd.

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Annex-B

List of 31 Rated Enterprise covered in North Eastern Region*

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Jakpod Garments B. L. Packaging Pvt. Ltd. Assam Electricals Everassam Tea Pvt. Ltd. Luit Refractories Pvt. Ltd. Net Metallics North East Rolling Mill Pvt. Ltd. Premier Tea Industries SRD Nutrients Pvt. Ltd Guru Detergents & Chemicals Pvt. Ltd Polymat Industries D S Polypack Industries Luit Coal Products Pvt. Ltd Aasray Concept Foods Raksha Cement Pvt. Ltd Savera Packers 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Anushri Fashion India Pvt. Ltd. T G Industries Jai Plastech Pvt Ltd Mahabir Cold Storage Pvt. Ltd. P.P. Industries Mac Power Steels North East Products Lloyds Pharmaceuticals Modern Flour Mills North East Kraft Paper Bag Manufacturers Meria Foods Global Foods Ken Bag Industries Kangleipak Spices Industry New Man Exports

* These 31 enterprises are included in the sample of 1,518 enterprises covered under the study.

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Annex-C

List of 100 Rated Enterprise Interviewed

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 Concept Clothing H V Equipments Pvt. Ltd. Bhiwadi Metal Rollwell Pvt. Ltd. Palak Tapes Pvt. Ltd. Nucor Weld Pvt. Ltd. Vilwam Interiors & Projects P Ltd Machine Tool Auto Kay Bee Engineering Enterprises Palsons Drugs Pvt. Ltd. Wool Spuns ltd Oriental Polyboard Pvt. Ltd. LTC Infrastructure Pvt. Ltd. Sovereign Exports S M Cement Industries Laxman Roller Flour Mill Pvt. Ltd. Meghalaya Oxygen Pvt. Ltd. Homtek India Agro Foods A A Nutritions Shree Ram Cattle Feed Polymat Industries Jai Commercial Pvt. Ltd. Kama Metal & Alloys Pvt. Ltd. Tapasi Rice Mill Lopan Metal Treatment Pvt. Ltd. Adhunik Yantra Udyog Pvt. Ltd. Crescent Tanners Pvt. Ltd. Vimlesh Industries Pvt. Ltd. Suri Shoes Pvt. Ltd. Teekay Foams [Link] Mekaster Engineering & Equipments Pvt. Ltd. N. P. Enterprises Pentagon Rubber Pvt. Ltd. Pramod Telecom Pvt. Ltd. Lucky Engineering Works Manisha Engineering Multi Max Engineering Works Pvt. Ltd. ABS Refractories Pvt. Ltd. D. P. Garg & Co. Pvt. Ltd. Applied Electro Magnetics Pvt. Ltd. Yamodima Storage Systems Limited Micron Precision Screws Ltd. Ozone Biotech Gigabyte Security Industries K6 Telecom & Security Systems Jakson Enterprises Ganpati Foods R. K. S. International Maheshwari Wires Pvt. Ltd. Aman Technologies Pvt. Ltd. Mahadev Cold Storage and Ice Plant 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100 Grandlay Electricals Shree HDM Industries Pvt. Ltd. Oriental Collection Shakumbhri Pulp and Paper Mills Limited Radha Krishna Ply and Board Industries Sukhia Plast Pvt. Ltd. Ajanta Dairy Ajit Singh Om Parkash Limited Meet Pvt. Ltd. Katyayini Paper Mills Pvt. Ltd. Agra Belting Works Reva Industries Limited SAM Gas Projects Pvt. Ltd. Britomatics Tapes & Filters India Pvt. Ltd. Cosmos Engine Components Pvt. Ltd. Cenlub Systems Dustech Engineers Pvt. Ltd. Perfect Print & Graphics Pvt. Ltd. Neumann Engineering Works Graphix Mega Times Ltd KDR Bright Steels Pvt. Ltd. De Bono Flexcom India Ltd VGS Industries Agrahan Engineers Pvt. Ltd. [Link] Excel Engineers Kamal Envirotech Pvt. Ltd. Lace India Company Creative Clothex Puri Electronics Pvt. Ltd. R. S. Organics Pvt. Ltd. B. S. Enterprises DNV Industries Garg Plastics PDRV Enterprises Pvt. Ltd. Spark Abrasives Pvt. Ltd. Bholanath Industries Ltd. Barnala Stone Crussher Ashoka Industries Himgiri Enterprises Pvt. Ltd. Mahadev Forging & Components Goyal Gas Services Jappan Auto Industries Ratan Engineering Company Pvt. Ltd. Shree Krishna Steels Prime International Alka Forgings Rani Electrodes Limited Tulsi Ispat Pvt. Ltd. Amar Brothers

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Annex-D

List of Banks Contacted under the study

1 Syndicate Bank Mr. Narasimha Rao Assistant General Manager B-117, 1st Floor, Sector -18, Noida 201301, UP. Corporation Bank Mr. P. Shivram Bhatt Deputy General Manager HT house, 10th Floor, KG Marg, Connaught Place, New Delhi-110001. Canara Bank Mr. Hradayesh Varshneya Chief Manager Jeevan Prakash Building, Sanjay Place, Agra 282002, UP. Syndicate Bank Mr. B. Anant Rao Assistant General Manager 43/2, Manisha Block, Sanjay Place, Agra 282002, UP. Bank of Maharashtra Mr. S.P. Singh Chief Manager 11, Raghu Shopping Arcade, MG Rd., Agra 282002, UP. Punjab National Bank Mr. Pallab Kumar Mukherjee Chief Manager Kolkata, West Bengal. Indian Overseas Bank Mr. Dilip Ghosh Branch Manager Kolkata, West Bengal. Bank Of India Mr. D S Bhadhoria Manager Geeta Nagar, Kanpur, UP. State Bank of India Mr. N. Balasubramanian Branch Manager Jawaharlal Nehru Road, Ekkaduthangal, Chennai 600032, TN. SIDBI Mr. B. Kiran Kumar Small Industries Deputy General Manager Development Bank of C-60, Sector 2, Noida 201301, UP. India 0120-2515040, 9868394321

011-23753964, 9818342888 psbhat@[Link]

0562-2521572, 9897414455 hvarshaneya@[Link]

0562-2524752, 9412751085 up.8813agraro@[Link]

0562-2525531, 9319393093 bom594@[Link]

033-24337029, 9433896142 bo6929@[Link] 033-23633761, 9432326444 phulbaganbr@[Link] 0512-2503666, 9838797070 kanpur@[Link] 044-22250732, 9445861040 sbi.04033@[Link]

10

0120-2545789 bkirankr@[Link]

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Annex-E

Bankers Write-up
Ten banks were approached for a feedback on the NSIC Credit Rating Scheme. While all are nationalized banks, we were also able to gather important feedback from SIDBI (Small Industries Development Bank of India). After a thorough discussion on the impact and effectiveness of the scheme, the following aspects were highlighted: 1. General Observations: Banks get loan applications from micro and small enterprises which have been rated under the NSIC scheme. Usually, banks recommend clients to get rated and thus avail benefits under the scheme, such as interest rate reduction. Most of the banks have tie-ups with 3 or 4 major credit rating agencies, while they also accept rating of 1 or 2 other agencies. On the other hand, some banks official said that they accept rating done by SMERA only, as it is a bank policy. 2. Benefits offered by banks: Based on their credit rating, banks offer MSEs a discount in interest rate. Other rebate is also given in loan processing fee, etc. on case to case basis and it is charged according to bank norms. While most of the banks offer a discount of 0.25% to 0.5% in interest rate, few banks give discount according to the head office guidelines for rated companies. The interest rate concession is decided on corporate level. Although it is given if rating is high, but it depends on corporate policy, said one of the banks official. Notably, one bank said that it used to give concession in interest rate till 6 months earlier, but does not give it now. 3. Awareness among MSEs: When asked about the awareness of the scheme among MSEs, few banks said that almost all MSEs that come for credit assistance are aware of the NSIC scheme, particularly those which have a requirement of a loan amount of Rs 1 crore and above. Majority number of banks pointed out that there is now much awareness of the scheme in the MSE sector. We quote one of the banks official over here: Proper education about the scheme is not there. People do not know how to deal with all the issues, they do the bare minimum and are interested in running the business alone. Since the loan requirement of MSEs is not very high, they do not bother about savings in interest charges due to credit rating. Big companies do everything to save costs as the loan amount is big and so a small percentage reduction in interest rate saves more money. 4. Willingness to get rated: While seven banks said that MSEs are willing to get rated as it is in their benefit, another one pointed out that parties are not that interested in getting rated under the scheme as they consider it an unnecessary expenditure. In such a case, the bank educates customers to go for rating.

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5. Suggestions: When asked for suggestions, one bank said that it is a good scheme which has been going on well without any practical problems and requested to give names of parties which have been rated under the scheme and are interested in taking finance. Another bank said that customers need to be made more aware about the benefits of this scheme. Further, a bank suggested conducting seminars of bankers and SME sector to increase the awareness of the scheme. Quoting from one of the bank officials: Some propaganda of the scheme should be there. More marketing work should be done by rating agencies as small enterprises do not know about them. The scheme should be well advertised. The bank does tell the MSEs about the scheme but education from NSIC side is required. Another banker said, Three things are very important: popularizing your product, creating awareness among the people, and demonstrating any benefit achieved by a MSE out of the rating to others.

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Annex-F

Feedback from 100 MSEs Interviewed

To assess the impact of the scheme in the eyes of bankers/financial institutions as well as MSEs who have got their units rated. The NSIC Credit Rating Scheme has a positive impact in the eyes of a majority of interviewed MSEs who have got their units rated under the scheme. Many MSEs pointed out that a third party survey is very important and that the credit rating has helped their unit a lot. Few also said that they have been benefitted from the scheme as they had to give less rating fee due to the subsidy provided by NSIC. Some MSEs told that their bank told them to get their unit rated or that rating was a mandatory requirement for credit by their bank. Thus, the scheme has a strong impact in the eyes of bankers/financial institutions as well as banks require an external credit rating to be done before extending credit/loan to MSEs. While most of the MSEs reported that they have benefitted from the scheme, few MSEs said that they did not get any immediate and direct benefit from their credit rating. One particular MSE said that it did not get any benefit of rating because of lower base rate of interest. Canara Banks Dispur branch said that rating will make interest rate go up because base rate has been revised, so after the rating we will get no interest benefit and hence we are not willing to get rated again after getting rated twice, said the units Director. Another MSE which got itself rated 2 years earlier from CRISIL said that being an exporter subvention owing to exports is already given to it by Government and hence it is already getting subsidized loan. So, it did not renew its rating. To assess the impact of the scheme on the performance of the units which have been rated under the scheme. Many MSEs pointed out that they had a positive impact on the performance of their unit after getting rated under the scheme. One of the MSEs said that its credit rating helped to make changes in the system and the unit has improved in past 2 years after the rating. Another MSE reported that it has undergone performance improvement through rectification of weak points after getting rated. Yet another said that it got weak rating earlier and is trying to improve its rating by improvement of the unit. While some MSEs believe that credit rating is very helpful for management to get actual status of the unit, some told that report submitted by rating agency has summary of financial data and hence it gives a picture of the financial status of the enterprise. While one MSE said that it witnessed moderate improvement in performance after the rating, another MSE which got a discount in interest rate after getting rated under the scheme said that no other benefit from rating comes into notice and that it did not get any advantage in terms of performance improvement. Proposed changes/modifications which may be required in the quantum of financial assistance, procedures or any other such changes necessary for improving the efficacy of the scheme. While some of the interviewed MSEs directly told us the changes/modifications they wish to propose for improving the efficacy of the scheme, others shared their problems and complaints with us which give important cues for necessary changes required in the quantum of financial

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assistance, procedures, etc. When asked for suggestions, an MSE said, Rating agencies should have a separate methodology for SMEs and some preferential treatment should be given to small industry. A practical approach should be followed for rating rather than the financial ratios and other bookish methods. Some MSEs suggested that the credit rating validity should be 2 years instead of 1 year. One particular MSE said that it has no suggestion as it has least knowledge about the scheme. This points out towards the promotion of the scheme. An MSE said that the rating agencies should take less time to complete the rating process as it took 2 months to get their unit rated. Some MSEs said that they do not have money for further rating, suggesting that the renewal fee be reduced. One MSE said that once the agency got its rating fee, their representatives did not tell the weak points of the unit because of which it got negative rating. It suggested that the rating agencies should give feedback for rectification of the rating given to the MSE. While some MSEs reported that they are happy with the rating process, few said that they are not satisfied with the process of rating and the report submitted by rating agencies. There were some specific complaints regarding the rating procedure used by agencies. For instance, the Director of a unit said, Rating agency people see financials and they have no knowledge about manufacturing industry. They send sub-contractors from 3rd party. Few MSEs believe that they did not receive much benefit from rating because their unit was not properly rated by the agency. One MSE said that it did not file the rating because it was not satisfied from the rating. Another MSE said that the rating was not done in a proper manner. People who wrote the report were different from people who did the analysis and there was a communication gap between them. First one representative came and then another, we had to repeat the same things again. Analysis was not done properly. We were not happy with the rating and hence did not avail any facility from bank. We used own finance, said its Proprietor. Assessment of the impact of the scheme on improving the access to adequate credit with ease. Majority of the interviewed rated MSEs got their unit rated for gaining improved access to adequate credit with ease. While 21 MSEs got a rebate of 2% in interest rate from bank owing to its credit rating, 31 received a discount of 0.25% from the same bank. Another 11 MSEs got benefit of 1% reduction in interest rate because of its credit rating. One of the MSEs said that it takes loan from NSIC and rating was used to show them. On the other hand, an MSE said that it got negative rating and hence did not receive any benefit out of it.

Assessment of the impact with respect to increase in recognition amongst vendors and buyers and any other such commercial and non-commercial advantages. Almost half of the interviewed MSEs said that they either did not or are yet to receive benefits with respect to increase in recognition amongst vendors and buyers after getting their unit rated under the scheme. One of the MSEs said that it did not get any benefit in terms of customers or suppliers and that it got credit rating done only for loan purpose. Another MSE said that rating did not benefit the unit in terms of reputation among customers, as it gets customers through personal links. On the other hand, one of the MSEs said that it has a tender based business and a good credit rating has a positive impact on it. Another MSE reported likewise saying that rating helps in tenders and EMD (earnest money deposit) is also not required. While one MSE said that it does not show its rating to customers as there are no such customers, another said that it shares

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its credit rating with its customers. Yet another MSE, which got rated 3 years back, said that it has displayed the rating certificate in its office and it also shows its rating to customers and suppliers. To suggest ways and means to expand the outreach of the scheme. When asked about the ways and means to expand the outreach of the scheme various answers were received from the interviewed MSEs. Some MSEs said that NSIC should use print and electronic media such as newspapers, television advertisements, emails, etc. to popularize the scheme and spread awareness about the benefits of credit rating. One of the MSEs said that all industries associations should be pursued to promote this scheme to their respective members. Another said, The credit rating agencies should conduct seminars to educate people about the scheme. When asked that how did you come to know about the NSIC Scheme, most of the MSEs either said that credit rating agency representatives told them about the scheme and the benefits of rating, or that their bank recommended them to get their unit rated under the scheme.

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Annex-G

Feedback from Rating Agencies

SMERA
This scheme has started becoming popular amongst banks. Many banks are offering interest rate concession to well rated borrowers. Some banks, enthused with the external ratings ability to manage risk and provide credit worthy borrowers, one bank has also started providing 50% discount on processing fees. The culture of credit rating is spreading amongst SMEs as increasingly they are applying for renewal of their ratings, thus exhibiting the potential of rating as tool to avail monetary as well as nonmonetary benefits. Suggestions: 1. Upward revision in the subsidy amount considering inflationary pressures on rating agencies cost of providing service 2. Due to lack of sufficient information on new projects funding from banks for new projects are hard to come by, hence subsidy for Greenfield unit can be considered. 3. Renewals are key to any rating services, as it enables the rating agencies, as well as the unit, to monitor progress of the unit every year. A consistent rating renewal from unit also improves confidence of the lenders in the unit who is able to review ratings of the borrower every year. Hence some subsidy can be linked to renewal of rating.

CARE
1. Subsidy for renewals: As there is minimal percentage of rated companies which obtain renewals, in order to encourage the entrepreneurs to make credit rating as a part of their process the Government can consider extending subsidy for renewals. 2. Rating of Greenfield projects: Under the scheme it is suggested to extend subsidy to Greenfield projects too or at least the units having completed 6 months of operation. Entrepreneurs in the incubator scheme should obtain Greenfield project rating. 3. Awareness in the tier III towns: We have experienced awareness about the various schemes of NSIC including Performance & Credit Rating scheme is minimal in tier III towns, we would be happy to work out visibility strategy along with NSIC in order to create more awareness in those locations.

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ONICRA
The scheme is a well thought out scheme and is being diligently implemented which has given a huge boost to the MSME sector. In the initial few years, the scheme was slow to take off because of lack of awareness. Now the awareness of the scheme is increasing day by day and subsidy budget was also substantially increased. Moreover, a more focused impetus has been placed on reaching out to the MSME sector. This will help in identifying and assessing more units. As a perspective, ONICRA therefore, has signed MOU with 20 banks and financial institutions.

1. The independent risk evaluation of SMEs by an unbiased third party has lent credibility to them and opens doors for them while dealing with MNCs and corporates. 2. Better ratings have helped the SMEs retain customers and suppliers, and negotiate better terms with them in terms of pricing their products. 3. SMEs can submit credit rating report for tenders and make themselves more credible to get bigger orders 4. SME rating is used by MSME units to obtain financing from banks and possibly negotiate a lower interest rate. 5. It also provides easier access to other sources of finance such as private equity 6. Another advantage of rating is that the highlighting of strengths and weaknesses acts as a trigger for self-correction. A regular renewal of ratings not only helps improve a firm's performance but also builds confidence within the lender fraternity and trading channel.

ICRA
Having rated more than 300 MSE ratings since the inception of the scheme, below are the points that have been gathered from interactions with SME clients.

1. Educate the SMEs on what benefits they may acquire when an external source rates them. 2. Educate the SMEs on how to use the reports they receive from the rating agencies for improving their performance. 3. Educate the bankers on the real need for SMEs to be rated (apart from just the interest cost benefit). Since bankers work closely with the SMEs, bankers can help SMEs understand the importance of performance evaluation that is being done by rating agencies before arriving at the rating.

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