final report for print and cd - copy

8/8/2019 Final Report for Print and CD - Copy

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

PROJECT TITLE:

AWARENESS OF CRISIL SME RATINGS AMONGVARIOUS EMERGING SMES

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration


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Submitted by:

MOHIT RANJAN

SEC 1901, B37

REGISTRATION NO:10906100

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA


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ACKNOWLEDGEMENT

In order to make my project I acknowledge a special thanks to all those peoplewithout whose supports it would not be possible for me to complete for me to complete myreport.

First of all I really thankful to my Lovely Professional University because ofthem Icould achieve the target. I express my sincere thanks to my project guide Mr. SA

NJAYJINDAL who had guide to me throughout my project.

I would also thankful to Mr. JATIN GUPTA (MARKETING ASSOCIATE, CRISILSME RATINGS LTD.), Mrs. SARITA GUPTA (Training coordinator, CRISIL SMERATING LTD.) and Mr. ASHWANI PANESAR (Training Coordinator - LSM) for givingme this opportunity to work on project in AMRITSAR.

Also I would like to express my inner feeling for all the people for co-operating andhelping me throughout the project.

Last but not the least I am thankful to my parents and friends who have provided mewith their constant support throughout this project.

MOHIT RANJAN


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PREFACE

The professional training is the internal part of a M.B.A program. It helps thestudent

understand practical aspects of Business Management in a better way as a part ofmy M.B.A.program at Lovely Professional University, Phagwara.

To be a Master of Business Administration student is a matter of pride becauseweare in a field, which help us to develop from a normal human being into a disciplined, anddedicated professional. One has to be a good learner to sharper knowledge in theparticular

field to achieve and attain the desired goals and heights. I analysis the awareness of CRISILRATING amongs SMES and I used research questionnaires as the research and datacollection tools. The responses were collected from 191 respondents from variousareas ofAMRITSAR (Focal Point, East Mohan Nagar and Batala Road).

I had learned lot during my project on awareness of CRISIL SME rating amongvarious emerging industries and I hope this project work will be beneficial in future.


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TABLE OF CONTENTS

PAGE NO.

1) Executive summary--------------------------------------------------72) Introduction-----------------------------------------------------------9-28

Introduction of the company------------------------------------9

Business and services of the company--------------------------10

Profile of the company----------------------------------------------18

History of the company---------------------------------------------19

Milestones of the company-----------------------------------------22

Product range of the company-------------------------------------23

(Performance of the company)

Benefits of SME Rating----------------------------------------------23

Procedure of Rating---------------------------------------------------25

CRISILs Rating Report---------------------------------------------28

3) Literature Review-----------------------------------------------------29-324) Introduction to the project------------------------------------------33

Objective of the Project

Why I chose this Project

5) Research Methodology----------------------------------------------356) Data Analysis and Findings----------------------------------------397) Suggestions and Recommendations------------------------------698) Conclusion-------------------------------------------------------------709) Bibliography----------------------------------------------------------71

10) Annexures-------------------------------------------------------------73-82


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TABLES----------------------------------------------------------------------

. Table 1(NSIC Rating scale)------------------------------------------------------------------11. Table 2(SME Rating)--------------------------------------------------------------------------12

. Table 3(Ceiling of investment in manufacturing and service industry)-----------18. Table 4.1(regarding SME Rating knowledge)-------------------------------------------40. Table 4.2(showing whether any Rating agency approached before )-------------41. Table 4.3(showing the company is already rated)-------------------------------------42. Table 4.4(regarding the motivating factor)----------------------------------------------43. Table 4.5 (regarding number of industries enjoying improvement after Rating)-44

. Table 4.6(regarding what kind of improvement they are enjoying)----------------45

. Table 4.7(regarding whether Rating help industries or not?)------------------------46. Table 4.8 (regarding Rating helped in meeting financials need? )-------------------47. Table 4.9(showing how many people are interested to go for Rating)-------------48. Table 4.10(regarding knowledge of people about various govt. schemes)--------49. Table 4.11(a)to Table 4.11(n)(showing the awareness level)---------------------50-60. Table 4.12(regarding government schemes awareness)----------------------------

---61. Table 4.13(regarding usefulness of schemes)-------------------------------------------62. Table 4.14(showing how much support of banks)------------------------------------64. Table 4.15(showing which add is more effective)--------------------------------------65. Table 4.16(regarding suggestions of industrialists toward government)---------67


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FIGURES----------------------------------------------------------------

. Figure 4.1(graphical representation of table 4.1)------------------------------40

. Figure 4.2(graphical representation of table 4.2)------------------------------41. Figure 4.3(graphical representation of table 4.3)------------------------------42. Figure 4.4(graphical representation of table 4.4)------------------------------43. Figure 4.5(graphical representation of table 4.5)------------------------------44. Figure 4.6(graphical representation of table 4.6)------------------------------45. Figure 4.7(graphical representation of table 4.7)------------------------------46

. Figure 4.8(graphical representation of table 4.8)------------------------------47

. Figure 4.9(graphical representation of table 4.9)------------------------------48. Figure 4.10(graphical representation of table 4.10)---------------------------49. Figure 4.11(a-n)(graphical representation of table 4.11(a-n)----------------50-60. Figure 4.12(graphical representation of table 4.12)---------------------------61. Figure 4.13(graphical representation of table 4.13)---------------------------62. Figure 4.14(graphical representation of table 4.14)---------------------------

64. Figure 4.15(graphical representation of table 4.15)---------------------------65. Figure 4.16(graphical representation of table 4.16)---------------------------67

ANNEXURES

. Annexure 1(Questionnaire) ------------------------------------------------------73-75. Annexure 2(List of industries visited)------------------------------------------76-80. Annexure 3(benefits of rating)----------------------------------------------------81-82


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CRISIL LOGO

EXECUTIVE SUMMARY:

The project on AWARENESS OF CRISIL SMES RATING AMONG VARIOUSEMERGING SMES based on customer survey. The main objectives of the project are:

. To check the awareness of credit rating among the industries.

. To provide knowledge of credit rating to the industrialists of Amritsar (Punjab).

. To know the number of units having SSI number.

And..

. To gain the marketing survey experience so as to enhance my marketing skills.

SCOPE:

For this project the research was carried out at various area of AMRITSAR District ofPUNJAB.


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The awareness of CRISIL SME RATING KNOWLEDGE IN AMRITSAR city..Thesample size for the research was 191. Random sampling technique is used.The research wasconducted in the months of June and July, 2010.

The required data was collected through structured questionnaire designed by the

company.The data so collected has been processed manually by editing, coding and tabulating. Foranalyzing the data, various statistical techniques used to draw meaningful results.

FINDINGS:

The findings of my project that the numbers of units are very less who have knowledge aboutthe Credit Rating. Most of the industries, who have some knowledge about rating,is throughCRISIL. There is a very low number of units which has undergone the Credit Ratingexercise. During my survey I foud only one industry who is rated by CRISIL, which one wasGGS INDUSTRY in focal point Amritsar. Rating help in bringing improvement to thebusiness. There was some industries who was interested in knowing about Rating and itsbenefits. Awareness about the various Government schemes is very less in this ar

ea. ISOstandards are the most known scheme among the industrialists AMRITSAR. Most of theindustrialists have their accounts in the banks which are connected to CRISIL.

I would like to suggest that, various industries was not much aware about SME rating, socompany should work on it. Company should organize more industrial meetings andseminars so that people should know more about CRISIL. Company should work withbanksto give more interest rate benefit, because this is the only thing where you canattract a client.The company should appoint more manpower to tackle all the clients on time. Companyshould also give more advertisement to spread information about a product, so IsuggestCRISIL to give advertisements in Television , and Newspapers etc.


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INTRODUCTION:

INTRODUCTION TO CRISIL

An increased range of borrowers, increasingly complex financial transactions andlargequantum of debt borrowed in India warranted the need of provider of objective, accurate andtimely information of credit quality. To fulfill this objective, CRISIL was incorporated in1987 as public limited company. Today CRISIL is Indias largest and most respectedratingagency. CRISILs majority share holder is standard $ Poors the worlds foremost provider of

independent credit rating, indices, risk evaluation, investment research and data. Leadingcorporation worldwide are rated by S&P. S&Ps credit risk tracer (CRT) has analyzed about10 lakh SMEs in Europe

Established in 1987, CRISIL has been promoted by leading Indian financial institutionslike The Industrial Credit and Investment Corporation of India Limited (ICICI),Unit Trust ofIndia (UTI) and Housing Development Finance Corporation Limited. The major share

holdersinclude Standard & Poor's, ICICI, UTI, Life Insurance Corporation, General InsuranceCorporation and a host of nationalized and foreign banks. CRISIL became a publiclimitedcompany in November 1993 and is presently a quoted company on the Bombay StockExchange and the National Stock Exchange

.

Crisil pioneered the concept of credit rating in India and developed the framework andmethodology for rating debt in the context of the India financial, monetary andregulatorysystem. CRISIL today has attained a pre-eminent position in the rating industry.It is thelargest rating agency in the South East Asia region and is amongst the four largest ratingsagencies in the world. In February 1996, CRISIL entered into a strategic alliance withStandard and Poors .The relationship got strengthened with S&P with CRISILs workingcredibility, competence and management. The relationship got further strengthened with S&Ptaking up a majority stake in CRISIL.

CRISIL started with the rating of corporate dept and other the years extended its scope of


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activities.


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CRISIL BUSINESS AND SERVICES

CRISIL Limited is Indias leading Ratings, Financial News, Risk & Policy AdvisoryCompany. CRISIL helps clients manage and mitigate business and financial risk, e

nablesmarkets to function better through benchmarks and best practices and provides workableinputs in shaping public policy. CRISILs services and products span the entire value chainstarting from data collection and management to providing opinions and integrated solutions.These products and services are backed by highest standards of integrity, independence andanalytical rigor, making CRISIL the most credible provider of these services inthe market.CRISILs clients depend upon it to constantly deliver objective opinions and the m

ostworkable solutions. Through a sustained theme of innovation and thought leadership, CRISILhas led the markets with new thoughts, new analytical frameworks and new approaches,placing it in its leading position in the Indian market place. to all participants in the financialmarkets. CRISIL Infrastructure Advisory Group provides workable policy and transactionlevel solution to Central and State governments, public sector and private sector entities, thathelp them make the difference.

CRISILSME RATING SERVICES

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

A. NSIC-CRISIL performance and credit rating for SSIs

CRISIL signed an MOU with NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)to rate SSIs in India at a subsidized cost.

An NSIC CRISIL RATING reflects CRISILs opinion on companys performancecapability and financial strength. Rating is assigned on following rating scale.


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spacer

NSIC rating scale TABLE NO .1

spacer

Financial Strength

spacer

High

Moderate

Low

PerformanceCapability

Highest

SE 1A

SE 1B

SE 1C

High

SE 2A

SE 2B

SE 2C

Moderate

SE 3A

SE 3B

SE 3C

Weak

SE 4A

SE 4B

SE 4C

Poor

SE 5A

SE 5B

SE 5C


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For example, a company with highest Performance Capability and high Financial Strength

will be rated 'SE1A', while one with poor Performance Capability and low Financial Strengthwill be rated 'SE5C'.

B. SME RATING

CRISIL SME Ratings will reflect the level of creditworthiness of an SME, adjudged inrelation to other SMEs. CRISIL SME Ratings will be assigned with the following ratingdefinition:

"The rating indicates that the level of creditworthiness of an SME, adjudged inrelationto other SMEs is " (as per table below)


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TABLE NO .2

CRISIL SME Rating

Definition

SME 1

Highest

SME 2

High

SME 3

Above Average

SME 4

Average

SME 5

Below Average

SME 6

Inadequate

SME 7

Poor

SME 8

Default

CRISIL Rating Symbols For Long Term Ratings

AAA(Triple A) HighestSafety

Instruments rated 'AAA' are judged to offer the highest degree ofsafety with regard to timely payment of financial obligations. Anyadverse changes in circumstances are most unlikely to affect thepayments on the instrument

AA(Double A) High


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Safety

Instruments rated 'AA' are judged to offer a high degree of safetywith regard to timely payment of financial obligations. They differonly marginally in safety from `AAA' issues.

A

Adequate Safety

Instruments rated 'A' are judged to offer an adequate degree ofsafety with regard to timely payment of financial obligations.However, changes in circumstances can adversely affect such issuesmore than those in the higher rating categories.

BBB(Triple B) ModerateSafety

Instruments rated 'BBB' are judged to offer moderate safety with

regard to timely payment of financial obligations for the present;however, changing circumstances are more likely to lead to aweakened capacity to pay interest and repay principal than forinstruments in higher rating categories.

BB(Double B)

Instruments rated 'BB' are judged to carry inadequate safety withregard to timely payment of financial obligations; they are less


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Inadequate Safety

likely to default in the immediate future than instruments in lowerrating categories, but an adverse change in circumstances could leadto inadequate capacity to make payment on financial obligations.

BHigh Risk

Instruments rated 'B' are judged to have high likelihood of default;while currently financial obligations are met, adverse business oreconomic conditions would lead to lack of ability or willingness topay interest or principal.

CSubstantial Risk

Instruments rated 'C' are judged to have factors present that make

them vulnerable to default; timely payment of financial obligationsis possible only if favorable circumstances continue.

DDefault

Instruments rated 'D' are in default or are expected to default onscheduled payment dates.

NMNot Meaningful

Instruments rated 'NM' have factors present in them, which render

the outstanding rating meaningless. These include reorganisation orliquidation of the issuer, the obligation being under dispute in acourt of law or before a statutory authority etc.

ABOUT- NSIC

National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified companywasestablished in 1955, and has been working to fulfill its mission of promoting, aiding andfostering the growth of small scale industries and industry related small scaleservices/business enterprises in the country. Over a period of five decades of transition,growth and development, NSIC has proved its strength within the country and abroad bypromoting modernization, up gradation of technology, quality consciousness, strengthening

linkages with large medium enterprises and enhancing exports - projects and products fromsmall industries.


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NSIC operates through:

. 9 Zonal Offices,

. 33 Branch Offices,

. 14 Sub Offices,


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. 10 NSIC Business Development Extension Offices,

. 5 Technical services Centers,

. 3 Extension Centers and

. 2 Software Technology Parks supported by a team of over 500 professionals spreadacross the country.

To manage operations in African countries, NSIC operates from its office in Johannesburg.

NSIC carries forward its mission to assist small enterprises with a set of speciallytailored schemes designed to put them in a competitive and advantageous position. Theschemes comprise of facilitating marketing support, credit support, technology s

upport andother support services.

FEES DETAILS FOR RATING OF INDUSTRIES

NSIC-CRSIL PERFORMANCE AND CREDIT RATING FOR SSIs

Turnover (Rs .Lakh)< 50

Turnover (Rs.Lakh) 50-200

Turnover (Rs.Lakh) > 200

Rating fees (Rs.)

40,000

45,000

60,000

Service tax @10.30% (Rs.)

4,120

4,635


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6,180

Total fees (Rs.)

44,120

49,635

66,180

Subsidy from NSIC(Rs.)

25,000

30,000

40,000

Amount payable bySSIs (Rs.)

19,120

19,635

26,180

*Concessional Fees

7,456

9,927

13,236

These concessional fees are applicable for CRISILs partner MOU bank customers andindustry association members. The fees mentioned above are inclusive of all expensesCRISIL will occur in connection with the exercise.


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RATING FEES FOR CRISIL SME RATING

Companies under Operations

Turnover(Rs . Crore)< 10

Turnover(Rs. Crore)10-25

Turnover(Rs. Crore)25-50

Tunover(Rs. Crore)

50-75

Turnover(Rs. Crore)

>75

Rating fees(Rs.)

60,000

65,000

70,000

85,000

110,000

Service tax

6,180


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6,695

7,210

8,755

11,330

Total fees (Rs.)

66,180

71,695

77,210

93,755

121,330

CRISIL TEAM AND RATING

WHO INVOLVED IN RATING PROCEDURE ?

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


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CRISIL SME Ratings

PARTNER BANK

CRISIL has partnered with 26 banks and two financial organisations to extend thespecialconcessional rating fees to its customers.

The following partner banks and financial organizations are giving interest ratebenefits to

the customers rated by CRISIL.

1. National Small Industries Corporation2. Bank of India3. Canara Bank4. Central Bank of India5. Corporation Bank6. Punjab National Bank7. Syndicate Bank


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8. UCO Bank9. Union Bank of India10. United Bank of India11. Vijaya Bank12. Kerala Financial Corporation

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

1. Allahabad Bank2. Andhra Bank3. Bank of Baroda

4. Bank of Maharashtra5. Dena Bank6. The Federal Bank Limited7. HDFC Bank Limited8. Indian Bank9. Indian Overseas Bank10. State Bank of Bikaner & Jaipur11. State Bank of Hyderabad12. State Bank of India13. State Bank of Indore14. State Bank of Mysore15. State Bank of Saurashtra16. State Bank of Travancore

It is in discussion with other banks to enter into similar tie-ups.CRISIL rating provide banks a ready reliable third party credit opinion and facilitate lendingdecision by helping fix appropriate quantum of loans, rate of interest, margin and security. Asper these MOUs, CRISIL charges fees at concessional rates (as low as Rs. 7456 for smallcompanies) to the banks, customers and the bank in turn offer favorable terms toentities withhigh CRISIL Ratings. UCO bank, United and Union bank have already announced reducedinterest rates for highly rated entities.

Large companies in India deals with several SMEs in their supply chain as dealersfor selling finished goods, and the vendors for procuring raw material or sub-assemblies.

CRISIL has signed agreements with such companies for grading their deals or rating theirvendors.


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CRISIL, with its reliability, width, and depth of experience in rating services, madea world of difference to the corporate sector when it is pioneered the concept of rating in


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India. CRISIL believes it will make the same difference to the SME sector with its SMEsector rating.

An overview of the SME\SSI sector in India

In the India market, the common concept was that of small scale industry (SSI);thedefinition of medium enterprises is of more recent origin. The government of India hashistorically tracked the profile and growth of the SME sector in terms of SSIs.SSIs are a

vibrant and important sector of the Indian economy. They make significant contribution tothe annual GDP, exports and employment. In an environment of sustained high economicgrowth, economic reforms and economic liberalization, the role and the importance of theSSI sector will be even more significant in the future.

(SSI) Small Scale Industries :

As defined by the ministry of SSI, government of India, the policy making and

promoting body for SSIs in India, an SSI is defined as:

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

SSI units mostly belong to the manufacturing sector. However some serviceenterprises such as software development enterprises, cold storage units etc. Have also beenincluded under the SSI umbrella.

(SMES) Small and Medium Enterprises

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


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commonly accepted definition of medium enterprises.


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The SMED Act defines a medium enterprises in the service sector as one havinginvestment in equipment (in excluding investment in land and building) up to Rs.5 crore.

Medium enterprises, which are relatively bigger in size, have different creditneeds. Looking at this, CRISIL has developed a separate scale for rating these e

nterprises (an8 point scale as given in the brochure for SME rating). For rating the medium enterprises,CRISIL goes by the definition of such enterprises by the banks.

Tabular representation of ceiling in investment for enterprises in manufacturingandservice sector as per the new SMED Act:

TABLE NO .3

Manufacturing enterprises

Investment in Plant and Machinery

Services Enterprises

Investment in Equipment

Micro

Up to Rs.25 lakh

Up to Rs.10 lakh

Small

Above Rs. Lakh up to Rs.5 crore

Above Rs.10 lakh up toRs.2crore

Medium

Above Rs.5 crore up to Rs.10 crore

Above Rs.2 crore up toRs.5crore


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PROFILE OF THE COMPANY

CRISIL is India's leading Ratings, Research, Risk and Policy Advisory Company.CRISIL offers domestic and international customers a unique combination of localinsightsand global perspectives, delivering independent information, opinions and solutions that help

them make better informed business and investment decisions, improve the efficientLocations.

CRISIL Headquarters Address

Crisil House (Pinnacle Chambers) 121/122 Andheri Kurla Road Andheri (East)Mumbai,Maharashtra,400093IndiaPhone:-912256913001Fax: 91 22 56913000


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Headquarters

Bombay Area, India

Industry

Financial Services

Type

Public Company

Status

Operating

Company Size

2,000 employees

Revenue

2,873 mil [INR] (65%)

Founded

1987

Website

www.crisil.com

Parent company

Standard & Poors

Subsidiaries

Irevna


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HISTORY OF THE COMPANY

Year

Milestone spacer

1987

CRISIL is incorporated

Pradip Shah is Managing Director

1987-88

Commences the rating of Companies


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1990-91

Establishes the Information Services Group

1991-92

Provides technical assistance and training to Rating Agency MalaysiaBerhard and MAALOT, the Israeli Securities Rating Company Ltd.

1993-94

Makes public offering of 20,00,000 equity shares of Rs. 10 each at apremium of Rs. 40 per share. The offer is oversubscribed by 2.47 times

1994-95

Mr. R Ravimohan takes over as Managing Director

Sets up the Advisory Services Group

1995-96

Forges a strategic alliance with Standard & Poor's Ratings Group.

1996-97

Standard & Poors' acquires 9.68% shareholding in CRISIL


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1997-98

Sets up IISL, a Joint Venture between CRISIL and National StockExchange for undertaking index business and related activities. The newCompany enters into a Consultancy and License Agreement withStandard & Poors'

1998-99

Develops a framework for rating debt obligations supported by creditenhancements based on overseas guarantees called Foreign StructuredObligations

Launches the Risk Assessment Model (RAM)

Develops a web presence, launches the official website

1999-2000

Acquires the business of Information Products and Research Services(India) Pvt. Ltd. along with its brand INFAC

Secures the Certificate of Registration under SEBI (Credit RatingAgencies) Regulations, 1999

2001-


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2002

Launches CRISIL Market Wire, a real-time financial news service

Launches Mutual Fund Composite Performance Rankings (CRISILCPRs), Fund Risk Analytics Model and CRISIL Mutual FundsPortfolio Tracker

2003-

2004

Change of name of the company from "The Credit Rating InformationServices of India Limited" to "CRISIL Limited"

Rates the first CDO transaction of working capital facilities in theAsia Pacific

Makes an equity investment in the Caribbean Information & CreditRating Services Limited (CariCRIS), (click here for more details) thefirst regional rating agency in the world, covering 19 countries.

Acquires Gas Strategies Group Limited (earlier known asEconoMatters Limited), a London-based company engaged in gas


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consulting, information and training/conferences

AMFI mandates CRISIL to provide daily fund indices asbenchmarking standards for the mutual fund industry

2004-2005

S&P acquires 3,120,948 equity shares of CRISIL from CRISILshareholders through an Open Offer taking S&P holding in CRISIL to58.46%

CRISIL Board approves proposal to acquire Irevna group of

companies

2006

CRISIL transfers assets and staff of CRISIL Market Wire to TV18

CRISIL constitutes a new team to achieve greater integration withStandard & Poor's (S&P) in brand franchise, market development andsales efforts.

Irevna ranked the top investment research outsourcing firm by buy-

side firms according to a recent survey by the Brown-Wilson Group;sets up second delivery centre in Buenos Aires


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Inter-company agreements signed between CRISIL and Standard &Poor's - CRISIL now known as a Standard & Poor's Company

2007

CRISIL transfers its advisory business (CRISIL InfrastructureAdvisory and CRISIL Investment & Risk Management Services) into a100% subsidiary CRISIL Risk and Infrastructure Solutions Limited.

CRISIL's subsidiaries CRISIL Research & Information ServicesLimited (CRIS), Global Data Services of India Limited, CRISILProperties Limited and Irevna Research Services Limited merged intoCRISIL Limited (CRISIL).

Ms. Roopa Kudva takes over as Managing Director & CEO ofCRISIL following Mr. R. Ravimohan's appointment as ManagingDirector & Region Head of Standard & Poor's South Asia

2008

CRISIL announces sale of shareholding in Gas Strategies Group Ltd.

CRISIL launches its formal sustainable development programmed forCorporate Social Responsibility

Launches the CRISIL Complexity Levels Service - an initiative aimedat strengthening Indian capital markets through greater transparent forinvestors


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MILESTONES OF THE COMPANY

Starting as a rating agency- We started in 1987 as a credit rating agency , at atime when

lending rates in India were fixed, and there was, therefore, little demand for credit ratings.We firmly established ourselves as the country's leading rating agency, respected for ourfiercely independent, highly credible, and analytically rigorous views. Shouldering the mantleof a pioneer and a market leader, we facilitated the development of India's credit market andbuilt investor confidence in our risk assessment capabilities.

Journey of 23 years-- At this important milestone, we reflect on our journey thus far andlook into the horizon beyond. We began our journey as India's first rating agency. Today, weare a diversified global analytical platform with leadership positions in the ratings, researchand advisory domains. Along the way, our growth has been closely intertwined with India'sdevelopment milestones..

India's transformation into a market-led economy greatly increased its need for

capital, andrequired extensive reforms and institution building. Accordingly, we diversifiedinto theinfrastructure advisory and business research domains, and quickly built up a reputation forindependent, reliable and incisive information, research, models and advisory services.Today, our services are key inputs in informed decision-making and the shaping of publicpolicy in India.

With increasing globalization, we also focused on making our income streams moreglobal.We acquired Irevna, a pioneer in the investment research outsourcing space; Irevna hassince been voted No.1 in high-end investment research and analytics outsourcingby the US-based Brown and Wilson Group two years in a row in 2006 and 2007. We have a thrivingbusiness that meets increasing global demand for better understanding of the Indian businessenvironment, through the services offered by our research and advisory groups.

Guided by our core values of integrity, independence, innovation, analytical rig


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or andcommitment, we are proud to have built a globally-acknowledged institution of repute overthese 20 years. We have facilitated the setting up of credit rating agencies inseveral countriesaround the world. Our association and integration with Standard & Poor's has further

enhanced our capabilities and opened up newer vistas of opportunity, for our businesses andpeople.

The macro environment trends, both in India and globally, present myriad businessopportunities. At a youthful 20, we are ideally positioned to service the needsof ourexpanding client base by maintaining our focus on our mission:

. Making markets function better.

. Helping clients manage and mitigate business and financial risks.

. Shaping public policy .


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PRODUCT OF THE COMPANY

Ratings

CRISIL Ratings

CRISIL Ratings is the only ratings agency in India to operate on the basis of sectoralspecialization. It reflects our sharpness of analysis, the responsiveness of theprocess and thelarge-scale dissemination of opinion.

CRISIL Ratings plays a leading role in the development of the debt markets in India.

The Rating Criteria & Product Development Centre, responsible for policy researc

h, newproduct development and ratings' quality assurance, has developed new ratingsmethodologies for debt instruments and innovative structures across sectors.

CRISIL Ratings provides technical know-how to clients worldwide. We have helpedset up ratings agencies in Malaysia (RAM), Israel (MAALOT) and in the Caribbean.

BENEFITS OF CRISIL SME RATING

1. FASTER AND EASIER AVAILABILITY OF LOANS

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

2. INCREASED CREDIBILITY WITH BANKERS, CUSTOMERS ANDBUSINESS ASSOCIATES

An SME rating from CRISIL, increases the credibility of the rated unit, indomestic and international markets, by providing the bank, customers, and


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business, associates with credible information about the company.

This increases their confidence in the unit and helps in increasing businessand building better relationships.

3. DETAILED RATING REPORT

Each CRISIL rated SME receives a rating report which providescomprehensive details about the rated unit, its functioning, as well as theorganizations strengths and weaknesses.

This rating report can be used by the unit in dissemination of credibleinformation about their company to a wide variety of business associates,including, collaborators, joint venture partners and other market participants.


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Besides, the rating report also serves as a guide to focus on areas ofimprovement and enables the SME to benchmark against competition.

4. INCREASED PUBLICITY

CRISIL SME ratings are listed on CRISILs website and on CRISILsmonthly publications, the CRISIL SME CONNECT. This serves as a goodsource of publicity for the rated entity and further enhances the credibility ofthe unit, a wide variety of banks, financial institutions and, foreigncounterparties use the CRISIL PUBLICATION and website, to identify andresearch companies in greater detail.

5. SUPPORT FOR EXPORT INITIATIVES

For exporters, CRISILs International Linkage offers an additional advantage:-STANDARD & POORs, a globally respected rated agency, is the majorityshareholder in CRISIL, therefore, a CRISIL rating will help establish thecredentials with international customers.

6. A TOOL FOR SELF IMPROVEMENT

Along with its ratings, CRISIL provides detailed analytical reports on theStrengths and Weaknesses of rated entities. Based on CRISIL reports, one cantake steps to strengthen their operations and become more efficient.

Each repots provides reliable and independent feedback from customers,suppliers and, banks.

7. AFFORDABLE

CRISIL SME rating services, while being highly credible, are also very muchaffordable. CRISIL offers an attractive concession in the rating fee for smallenterprises. Also, NSIC Ltd., which is a corporation under the ministry ofMSME, GOVT, OF INDIA, provides 75% subsidy in rating fee for smallenterprises.

Thus, the rating fee payable by the small enterprises ranges from Rs.7456 toRs.13236. for enterprises not registered as small enterprises, the fee is higher,

as the subsidy is not available from NSIC.


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CRISIL, with its reliability, width, and its depth of experience in rating services made a worldof difference to the corporate sector, when it pioneered the concept of rating in India. CRISIL

believes, it will make same difference to the SME Sector, with its SME sector ratings.


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RATING PROCEDURE:

Step 1: Collect and process preliminary information


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Step 2: Analyse and assign the rating


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Step 3: Communication and publication of the rating


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CONTENTS OF CRISIL RATING REPORT FOR INDUSTRIES

CONTENTS

1.NSIC-CRISIL PERFORMANCEAND CREDIT

2.RATING GRID

3.FACT SHEET

4.STRENGTH AND RISKFACTORS

5.MANAGEMENT PROFILE

6.FUTURE PLANS

7.OWNERSHIP PATTERN

8.MANUFACTURINGFACILITIES

9.BUSINESS PROFILE

10.PRODUCT PROFILE

11. CAPACITY UTILISATION

12.SUPPLIER INFORMATION

13.CUSTOER INFORMATION

14.ORDERS IN HAND

15.MARKETINGARRANGEMENTS

16.OTHER INFORMATIONS

17.BANK AND INSURANCEDETAIL

18.FINANCIAL PERFORMANCE

19.PROFIT & LOSS ACCOUNT

20. GRAPHS

21.BALANCE SHEETS

22. KEY RATIOS

23.SITE VISIT INFORMATION


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24.PROMOTORS DETAIL


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LITERATURE REVIEW:

This deals with the review of studies, which have been conducted in India and abroad

covering different aspects of disclosures. The review of these studies has beenhelpful inpresent research and gather information. These include qualitative, descriptiveand empiricalstudies dealing with disclosure in annual reports.

International Journal of Management and Enterprise Development, (2003) conductedastudy and analyze that the developing countries such as India are in a state oftransition. They

are striving to be outward looking global economies rather than inward looking localeconomies, which will be possible only if small and medium-scale enterprises (SMEs) areencouraged. A wider population base capable of entrepreneurial behavior needs tobedeveloped. The increasing unemployment problems of engineering students have forced theIndian policy makers to explore new avenues in the small-scale sector and inculcate studentstowards self-employment/entrepreneurship in their early careers. For the successof theentrepreneurship development programme, there should be more concentration on vi

siondevelopment of an individual entrepreneur than on a project. As shown in the surveyconducted to assess the entrepreneurial characteristics and capabilities of engineeringstudents, the entrepreneurial characteristic is observed to be higher than thatof theirentrepreneurial capability. To develop and transfer technology for SMES in India, effectiveinteraction of academic institutions with this sector will be the first step inthis direction.

Halima Sadia Rizvi, (2004) acknowledge that like every economy in its growth process,Indian economy too over the decades has undergone several structural transformations bothin the main sectoral components as well as in the inter-sectoral transformation.What is morenoticeable and significant is not the change from small scale to medium scale and to largescale production sector but a broad based change within the composition of products,production techniques and the resultant technical efficiency.

The importance of small and medium scale enterprises in the process of economicdevelopment of the Indian economy becomes more glaring and significant when we e


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xamineits contribution to Gross Domestic Product, Gross Domestic Capital formation, employment


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generation capacities as well as promotion of exports. Nonetheless, since globalization of theIndian Economy a move towards liberalized economic policy, the small and mediumsectorhas not reflected any positive co-relations between opening up and attainment ofgreater

growth targets. The present study aims to examine the reasons for this lacuna and suggestmeasures to policy planners which can be implemented not only by India but alsoby manydeveloping countries in their similar situations of growth process.

S.Venkataramanaiah & S.P Parashar, (2005) analyse that the performance of SMEs inIndia and its competitiveness & sustainability in the future scenario. The Indian economy is

expected to grow by over 8 per cent per annum until 2020 and can become the second largestin the world, ahead of the United States, by 2050, and the third largest after China and theUnited States by 2032. The turnaround in manufacturing and other sectors, whichhasoccurred in the face of increased global competition, is due to improved efficiency followingthe various policy reforms in recent years. Small and medium enterprises (SMEs)constitute 6per cent of GDP, 34 per cent of national exports and account for the employmentof morethan 30 million people. SMEs have improved their performance and presence throug

hindustrial cluster approaches. In this paper, they present the experiences of three auto clustersin three major locations in India. They also highlight some of the important issues that SMEsface and conclude by suggesting suitable cluster interventions for enhancing competitivenessand sustainability of the SME sector.

Lakhwinder Singh and Varinder Jain (2006) observed the survival issue if the small scaleenterprises. The relatively small size and limited bargaining power of small-scale units raisedconcerns about the survival of these units in a competitive environment. It wasfeared thatthese, mainly the unorganised ones, would be wiped-off completely unless they were givensome protection in the rapidly globalising economy. But, the experience of unorganisedmanufacturing units has been quite different. These units expanded in terms of theircontribution to employment and output. The study establishes the distinct emergence ofunorganised industry in Punjab, in terms of employment, capital used and labourproductivity, in sharp contrast to the scenario in other states. It further expl

ores the structureof Punjab's unorganised industry along with examining the inter-industry patterns of growth.


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It also delves into the factor-use pattern through an analysis of labour mix, factor allocationand factor productivity. The study points out the existence of various impediments in the


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growth path of Punjab's unorganised industry. Therefore, there arises a seriousneed to curbthese impediments if the policy makers are really interested in enabling Punjab's unorganisedindustry to realise its potential in the fast globalising competitive environment.

Kudva Rupa, (2006) acknowledge that Banks can encourage SMEs to get rated by offeringincentives, "If banks send 100 customers at one go, or if we rate whole clustersof SMEs, thecost can be reduced," she added

"Rating SMEs is a challenge. One needs to use a combination of market knowledgeand thetrack record of the company. The rating is easier if the bank has a long-term re

lationship withthe company." Mr Rajesh Dubey, CEO of SMERA, a specialised SME rating agency, said:"Wherever we have signed up with banks and banks have issued instructions to their SMEclients, they do come for ratings. But in cases where the bank has not issued instructions theSMEs do not come forward." [Crisil] has tied up with seven banks and SMERA has tied upwith 14 so far to extend ratings to SMEs. Both agencies are planning more tie-ups.

Dr. Adya Prasad Pandey (2007) examined that the small scale sector in India has

particularly emerged as a vibrant and dynamic segment of the economy. The strategy ofeconomic development of any country that formulate programmes for removal of poverty byproviding large scale employment, education and training, capital formation, effectivemobilisation of resources, balanced economic growth, expansion of trade, transport andequitable distribution of national income with effective involvement and participation of allits citizens in the accomplishment of the goal, cannot neglect small & medium enterprises.The second generation of economic reforms is underway with vigour. Being one ofthe majorgrowth drivers of the economy, the biggest challenge before SMEs is not only tosurvive butalso to grow and compete on a sustainable basis. This paper compares the performance ofSMEs in pre and post liberalised period and focuses on policy changes which haveopenednew opportunities for this sector. Technology development and strengthening of financialinfrastructure is needed to boost SSI and thus growth target can be achieved.

K. D. Raju (2008) revealed that the SMEs form the backbone of the Indian manufacturing


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sector and have become engine of economic growth in India. It is estimated thatSMEsaccount for almost 90% of industrial units in India and 40% of value addition inthemanufacturing sector. This paper closely analyses the growth and development ofthe Indian


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small scale sector from opening of the economy in 1991. Third part looks into the presentscenario of SMEs and the problems they phases like lending, marketing, license raj issues indetail. The Micro, Small and Medium Enterprises Act, 2006 is intended to boost the sector.

The provisions of the Act are examined closely. The final part provides some future policyframework for the sustainability of the sector.

Rajeev Karwal, (2009) observed that CRISIL have rated around 10,000 MSMEs in thelastfour years. We have tied up with 30 banks for providing credit to companies based on ourrating. Out of this, 15 banks also give further interest rate deductions for higher rated

SMEs." Elaborating further, Mr Pai said that the number of MSMEs approaching them wasdoubling every year. He said, "Besides helping them in getting credit, it also increases theircredibility with buyers. Almost 35-40 per cent companies come back for renewal rating afterthe first year. The Government subsidy is only for the first year. The fact thatthey come backand spend their own money, shows that companies are seeing benefit in these schemes.

K Chatterji Aaron & W Toffel Michael, (2010) analyse that many rating systems seek to

help buyers overcome information asymmetries when making purchasing decisions. Weinvestigate how these ratings also influence the companies being rated. We hypothesize thatratings are particularly likely to spur responses from firms that receive poor ratings, andespecially those that face lower-cost opportunities to improve or that anticipate greaterbenefits from doing do. We test our hypotheses in the context of corporate environmentalratings that guide investors to select 'socially responsible,' and avoid 'socially irresponsible,'companies. We examine how several hundred firms responded to corporate environmentalratings issued by a prominent independent social rating agency, and take advantage of anexogenous shock that occurred when the agency expanded the scope of its ratings.Our studyis among the first to theorize about the impact of ratings on subsequent performance, and weintroduce important contingencies that influence firm response.


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INTRODUCTION TO THE PROJECT

o OBJECTIVE OF THE PROJECT.

o NEED OF THE PROJECT


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OBJECTIVES:

. To check the awareness of credit rating among the industries.

. To provide knowledge of credit rating to the industrialists of Amritsar (Punjab).

. To know the number of units having SSI number.

And..

. To gain the marketing survey experience so as to enhance my marketing skills.

NEED OF THE PROJECT

Through this project I would like to gain the knowledge about SME rating provided by theprestigious company like CRISIL and also intend to enhance the awareness of credit ratingamong the industrialist of the AMRITSAR city.

This project would be useful to all those who are interested in SME RATING, Andto thosewho are interested in banking .


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RESEARCH METHEDOLOGY:

. INTRODUCTION TO MARKETING RESEARCH

. RESEARCH METHODOLOGY

. LIMITATION OF THE STUDY


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INTRODUCTION TO MARKETING RESEARCH

When we talk about market research and marketing research both are often confused. Marketresearch is simply research into a specific market. It is a very narrow concept.Marketing

research is much broader. It not only includes market research, but also areas such as researchinto new product, or modes of distribution such as via the internet. Here are acouple ofdefinitions:

1. Marketing research act as a pool amongst the consumer, customer, and public to themarketer through information information used to identify and define marketingopportunities and problems; generate, refine, and evaluate marketing actions; mo

nitormarketing performance; and improve understanding of marketing as a process.

2. Marketing research specifies the information required to address these issues, designsthe methods for collecting information, manages and implements the data collectionprocess, analyzes, and communicates the findings and their implication.

RESEARCH METHDOLOGY

The present study was undertaken To Study the awareness of crisil SMErating knowledge in batala road, focal point, East Mohan Nagar of Amritsar City.Thispart of my project gives the information regarding-

. research design

. data collection method

. sampling techniques

. fieldwork carried out

. limitations inherent in the project and

. coverage of research work.


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Research Design

The research design is the pattern or an outline of research project working. It is a

statement of only the essentials of study being conducts follows a descriptive research design.

Data collection method:

I collect the Primary data with the help of questionnaires provided by thecompany. The questionnaire consisted three types of question pattern-

. Multiple choice questions,. close ended questions

so as to gain the information from the respondent.

The secondary data was collected through various websites, books, journals etc.

Sampling Plan

Sampling is an effective step of collection of primary data and has a great influence onthe quality of results. The sampling plan includes the population, sampling sizeand samplingdesign.

Population:

My study aimed to include the industrialist of Amritsar city as to study, the awareness ofCRISIL SME RATING knowledge in Amritsar.

.

Sample Size:

The sample size for the research was 191.

Sample Technique:


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Simple random sampling technique is used.


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Data Analysis & Interpretation:

In the view of the present study, the required data was collected through structuredquestionnaire designed by the company. The data so collected has been processedmanuallyby editing, coding and tabulating. For analyzing the data, various statistical techniques usedto draw meaningful results.

LIMITATIONS OF THE STUDY

Though every care has been taken to make this report authentic in every sense, yet there werea few uncomfortable factors, which might have their influence on the final report. Linkingfactors can be stated as:-

. Time constraint

Due to lack of time i.e. 6 weeks, it was not possible to deeply study every aspect of customersand devote enough time for research work. But still sincere efforts were put to

reach to thereliable conclusion.

. Data collection constraints

There were many problems regarding the collection of primary data which are as follows:

1. As the questioners were filled during the working hours, the respondents hadlittle time todevote for filling the questionnaires.

2. Some respondents did not have their serious attitude towards the questionnaire and hencetheir responses may not reflect the real picture

3. Some of the respondents were not candid enough to reveal all the required information.They might have given inflated or wrong data.

4. The survey was conducted in the focal point, east mohan nagar, batala road region ofAmritsar city. Thus the respondent belonged only to this region of country. This

could havebrought biasness into the study.


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5. However all the efforts were made to remove the biasness but it cannot be denied that thereis no possibility of individual biasness on the part of respondent.


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DATA ANALYSIS AND FINDINGS

FINDINGS AND ANALYSIS OF MARKET RESEARCH

PROJECT FINDINGS


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. TO KNOW ABOUT SME RATING KNOWLEDGE:

TABLE NO.4 1 (showing sme rating knowledge)

KNOWLEDGE

NO.OF PERSONS

PERCENTAGE

YES

40

21%

NO

151

79%

We can see from the table number .1 that there are very less industrialists whohaveknowledge about SME rating because there is no advertisement regarding this. Companyshould focus on advertising about benefits of rating on television and newspaper

. Here only21% of people have knowledge whereas rest 79% is unaware about rating.


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Figure .1 (graphical representation of table no. 4.1)


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. TO KNOW WHETHER ANY OF THE RATING AGENCY APPROACHEDBEFORE:

TABLE NO. 4.2 (name of rating agencies who approached before.)

RATING AGENCY NAME

NO. OF COMPANY

PERCENTAGE

ICRA

2

1%

SMERA

0

0%

D&B

0

0%

CRISIL

30

16%

NONE

159

83%

From the table no. 4.2 it is clear that majority of the industrialists didnt knowabout theRATING. This shows that there is not proper circulation of information regading

rating inthese area. Only 17% of the industrialists knows about the rating through ratingagencies


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most of them ae aware about crisil and here about it but its percentage is only16% that isvery poor.

Figure 2 ( showing the graphical representation of the table no. 4.2 )


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. TO KNOW ABOUT WHETHER THE COMPANY HAVEUNDERGONE THE CREDIT RATING EXERCISE:

TABLE NO.4.3 (showing whether company has a credit rating or not.)

Credit Rating

Number of company

Percentage

YES

1

1%

NO

190

99%

It is clear from the above table that a very few companies (i.e. only 1%) have undergone theCredit Rating exercise for their enterprise, rest 99% of the companies doesnt enjoying theRating benefits.

Figure 3 (showing the graphical representation of the table no. 4.3)


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. TO KNOW THAT WHICH FACTORS MOTIVATES YOU TOOPT FOR RATING

TABLE NO. 4.4( showing the motivating factors which help in attracting the customers)

FACTORS

NO. OF PERSONS

PERCENTAGE

INTEREST RATE CONCESSION

0

0%

CREDIBILITY AMONGCUSTOMERS AND SUPPLIERS

0

0%

REPUTED 3RD PARTY OPINION

0

0%

ALL OF THE ABOVE

1

100%

ANYOTHER

0

0%

During my survey I found that only 1% persons was attracted by all the benefitswhich theycan enjoy after rating. So it is very important to focus on work hard in this area companyshould target this area and use the effective marketing team and tools for impro

vement in thisarea. Because here I analyze that there is a opportunity in this area for ratingagencies.


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Figure 4(showing the graphical representation of the table no. 4.4)


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TO KNOW WHETHER RATING HELPED AND IMPROVE THE BUSINESS ORNOT:

TABLE NO. 4.5 (showing the number of industries thinks that rating is useful fortherebusiness)

HELPED INIMPROVINGBUSINESS

NUMBER OF

COMPANIES

PERCENTAGE

YES

1

100%

NO

0

0%

In the table number 4.5 it is shown that 100% of the industrialists told that rating is useful forthere business, but the rate of dissatisfied cant be judge. The reason behind itis that there isonly one industries I found which is rated.

Figure 5(graphical representation of the table 4.5)


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. TO KNOW WHAT KIND OF IMPROVEMENT INDUSTRIES ENJOY AFTERRATING

TABLE NO.4.6(showing in which area improvement is there)

AREA

NO.OF PERSONS

PERCENTAGE

MANAGEMENT STRATEGY

0

0%

FINANACE

1

100%

HUMAN RESOURCE(HR)

0

0%

MARKETING

0%

PRODUCTION PROCESS

0

0%

ALL OF THE ABOVE

0

0%

In table number 4.6 it is shown that rated ompany thinks that there is improveme


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nt infinancial departments because the Rating helped in to provide the full financialanalysis ofcompany which consists of both strengths and weaknesses.

Figure 6 (graphical representation of the table 4.6)


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. TO KNOW HAS RATING HELPED IN IMPROVING RELATION WITHLENDERS AND BANKERS

TABLE NO. 4.7(which is showing the improvement in relationship with lender and bankersafter rating)

HELPED INIMPROVINGRELATIONSHIP

NO. OF PERSONS

PERCENTAGE

YES

1

100%

NO

0

0%

From the abovestated data it isfound that the industry who had the credit rating certificate is enjoying the benefit of theimprovement in the relationship between then and their lenders and bankers. Because bankssupport the rated industries due to satisfaction of their creditability in market, and therereputation which is rated by a rating agency.

Figure 7(graphical representation of the table no.4.7)


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. TO KNOW IN WHICH AREA RATING HELPED INDUSTRIES INMEETING THE FINANCIAL NEEDS?

TABLE NO.4.8(SHOWING IN WHICH FIANACIAL AREA RATING HELPED THECOMPANIES )

AREA

NO.OFPERSONS

PERCENTAGE

GETTING ADEQUATE QUANTUM OF LOAN

0

0%

CONCESSION IN INT. RATE

1

100%

RELAXATION IN COLLATERALS

0

0%

REDUCTION IN TRANSACTION COST

0

0%

FASTER DECISION ON PART OF LENDERS

0

0%

ALL OF THE ABOVE

0

0%

NOTHING

0

0%


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In table number 4.8 it is shown that in the financial area rating helped in getting concession

in interest rate.There was no other rated industries so I cant found the responsein all thementioned benefits, but the rated industry get the benefit. The reason is that the banks provideeasier loan up to .1% discount to rated industries.

Figure 8 (graphical representation of the table 4.8)


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. TO FIND OUT HOW MANY PEOPLE ARE INTERESTED TO GO FORTHE RATING AND INTERESTED IN KNOWING THE RATINGBENEFITS

TABLE NO. 4.9(which is showing the number of interested persons)

INTERESTED

NO. OF PERSONS

PERCENTAGE

YES

57

30%

NO

133

70%

After the survey we came to know that only 30% of the 190 persons were interested to go forthe rating and interested in knowing the benefits of the rating. This shows thata large amountof persons are not interested to go for the rating which is 70 %. When I try to

find the reasonbehind this I found that there is no more awareness in people of focal point, batala road and


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east mohan nagar of Amritsar city. Company should organize the awareness programme inthese reason.


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Figure 9(pesenting the graphical representation of the table no.4.9)

. TO KNOW HOW MANY PEOPLE ARE AWARE ABOUT THE VARIOUSMSME SCHEMES FOR THE DEVELOPMENT OF MSMEs.

TABLE NO. 4.10(showing the awareness level about various MSMES scheme)

AWARENESS

NO. OF PERSONS

PERCENTAGE

YES

22

12%

NO

169

88%

From this data we can analyze that the industrialists of the batala road, east mohan nagar andfocal point area are not so much aware about the various ongoing government schemes of the

Ministry of MSME for the development of MSMEs. This shows the lack of the circulation ofthe information among the companies located in this area. There is only 12% peop


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le who areaware about various MSMES scheme for the development of SMES. In the other hand 88%people are not aware about MSMES scheme.

So, there is a strong requirement of awareness programme regardingprovide the knowledge about various MSMSS industries.


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Figure 10(representing the graphical representation of the table no.4.10)

. TO KNOW THAT HAS THE INDUSTRIES HEARD OF OR TAKENASSISTANCE UNDER ANY OF THE FOLLOWING GOVERNMENTSCHEME

(A)INTERNATIONAL COOPERTAION SCHEME:

TABLE 4.11(a)(number of persons heard about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

35

12%

NO

115

88%

Technology infusion and/or upgradation of Indian micro, small and medium enterprises(MSMEs), their modernization and promotion of their exports are the principal objectives ofassistance under the scheme. Only 12% of the total persons surveyed were aware of thisscheme.


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Figure 11 (graphical representation of table 4.11(a)

(B)PERFORMANCE AND CREDIT RATING SCHEME

TABLE 4.11(b)( number of persons aware about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

2

1%

NO

148

99%

Performance and Credit Rating scheme is the scheme which is related to our product. In thisscheme a customer get 75% concession in the Credit Rating Fee. This scheme is known to avery few number of persons which percentage is only 1%

Figure 12 (graphical representation of table 4.11(b)


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(C) TECHNOLOGY UPGRADATION FUND SCHEME FOR TEXTILE SECTOR-:

TABLE 4.11(c)(number of persons aware about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

35

23%

NO

115

77%

This scheme Aids modernization in the textile industry and provides cheap finance. Thepercentage of industries who are aware about this scheme are from batala road area ofAmritsar. The industries having business of screw and other hardware products having norequirement of this scheme.

Figure 13 (graphical representation of table 4.11(c)


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(D)MARKETING ASSISTANCE SCHEME-:

TABLE 4.11(d)(number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

24

16%

NO

126

84%

This scheme helps in Organizing International Technology Exhibitions in ForeignCountriesby NSIC and participation in International Exhibitions/Trade Fairs and also help

s inproviding assistance and concessional rates for stalls, air tickets, freight charges for goods tobe exhibited, etc. As shown in the above table the people who know about this scheme is very lessalthough it is a great initiative by the government to promote the small industries.

Figure 14 (graphical representation of table 4.11(d)

(E) RAJIV GANDHI UDYAMI MITRA YOJNA-:

TABLE 4.11(e)( number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS


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PERCENTAGE

YES

3

8%

NO

132

92%

Here we can see that only 8 % of the industrialists of the Amritsar are aware of

this scheme.This scheme Provides handholding support and assistance to the potential first generation


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entrepreneurs, who have already successfully completed vocational training fromITIs,through the selected lead agencies i.e. 'Udyami Mitras', in the establishment and managementof the new enterprise, in dealing with various procedural and legal hurdles andin completion

of various formalities required for setting up and running of the enterprise.

Figure 15 (graphical representation of table 4.11(e)

(F) TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT(TREAD) SCHEME FOR WOMEN-:

TABLE 4.11(f)( number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

0

0%

NO

150

100%

It is shown in the above table that not a single company is aware about this scheme.

The reason behind this is the number of industries run by women are not presentin the Amrisar

area in batala road, east mohan nagar and focal point. The Scheme provided for financial loans,training, counseling, information, etc for capacity building. The scheme is spec


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ific for women.


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Figure 16 (graphical representation of table 4.11(f)

(G) CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGYUPGRADATION-:

TABLE 4.11(g)(number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

88

59%

NO

62

41%

Here we can analyse that this scheme is very much familiar to the companies because thescheme is for technology upgradation and most of the industrialists are availingthis schemeto upgrade their plant and to increase their plant capacity at the minimum rates. The schemeaims at facilitating Technology Upgradation of Micro and Small Enterprises by providing 15% capitalsubsidy (12% prior to 2005) on institutional finance availed by them for induction of well establishedand improved technology in approved sub-sectors/products.


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Figure 17 (graphical representation of table 4.11(g)

(H) CREDIT GUARANTEE SCHEME-:

TABLE 4.11(h)( showing number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

31

21%

NO

119

79%

The awareness of this scheme among the industrialist is more than some other schemesbecause they have to avail loans from the bank time to time. In this scheme Collateral freeloans upto a limit of Rs.50 lakhs are given for individual MSEs.

Figure 18 ( graphical representation of table 4.11(h)


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(I)ISO 9000/ISO 14001 CERTIFICATION REIMBURSEMENT SCHEME-:

TABLE 4.11(i)(number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

135

90%

NO

15

10%

This is Incentive Scheme of Reimbursement of expenses for acquiring Quality ManagementSystem (QMS) ISO 9000 certification/environment management (EMS) ISO 14001

certification to the extent of 75% or Rs.75,000/- whichever is lower. After thesurvey Ianalyze that this is the only scheme which is known to almost every industrialist.

Figure 19 (graphical representation of table 4.11(i)

(J) NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP)SCHEMES UNDER XI PLAN-:

TABLE 4.11(j)(number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES


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23

15%

NO

127

85%

This is a programme revealed under the 11th five year plan .There are 10 schemesunder NMCPlike Marketing Support, Lean Manufacturing, Mini Tool rooms, etc. There are only15% of thecompany who knows about this scheme.


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Figure 20:(graphical representation of table 4.11(j)

(K)MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME(MSE-CDP)-:

TABLE 4.11(k)(number of persons aware about the scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

27

18%

NO

123

82%

This government scheme was for the sustainability, growth and capacity buildingof MSEs byaddressing common issues such as improvement of technology, skills and quality,marketaccess, access to capital, etc. Most of the companies which were producing cycleand autoparts were aware of this scheme, to all other industrial chunks it was not so common. So the82 % industries are not aware about this scheme.


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Figure 21 (graphical representation of table 4.11(k)

(L)MSME MDA-:

TABLE 4.11(l)(number of persons aware about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

9

6%

NO

141

94%

This scheme was known to a very few industrialist only by 6%, and to whom it wasknownthey already availed it. The scheme offers funding upto 75% in respect of to andfro air farefor participation by MSME Entrepreneurs in overseas fairs/trade delegations.

Figure 22(graphical representation of table 4.11(l)


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(M)MINI TOOL ROOMS-:

TABLE 4.11(m)(persons aware about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE

YES

28

19%

NO

122

81%

Those industries which is manufacturing TOOLS, CYCLE PARTS, AUTO PARTS & NUT

BOLTS are aware about this scheme. In this scheme government provides Assistanceupto90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms. Forupgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores. This washeared by28% people.

Figure 23(graphical representation of table 4.11(m)

(N)SCHEME OF NATIONAL AWARD:

TABLE 4.11(n)( number of persons aware about this scheme)

OPTIONS

NO. OF PERSONS

PERCENTAGE


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YES

17

11%

NO

133

89%

The industrialists who was very successful and doing business at a very large scale includingexports knows about this National Award Scheme. The Awards are be given for ever

ycalendar year to deserving entrepreneurs of Micro, Small and Medium Enterpriseshaving


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permanent registration. The MSMEs should have been in continuous production/service forlast four year

Figure 24(graphical representation of table 4.11(n)

. TO KNOW ABOUT HOW MANY GOVERNMENT SCHEME A COMPANYOWNER AWARE OF:

TABLE 4.12(number of schemes an industrialist know)

OPTIONS

NO.OF PERSONS

PERCENTAGE

NONE

41

21%

1-5 SCHEMES

127

67%

6-10 SCHEMES

21

11%

MORE THAN 10

2

1%


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From the table we can see that the maximum number of persons (i.e. 67% of the total peoplesurveyed) knows about 1-5 schemes. There was a large number of schemes going inthemarket but they didnt got any information about them. There was only 11% personsknows

about more than 5 schemes and only 1% persons are there who were aware of more than 10schemes.


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Figure 25(graphical representation of table 4.12)

. TO KNOW THAT HOW WOULD AN INDUSTRALIST RATE THEUSEFULNESS OF THESE SCHEMES

TABLE 4.13 (usefulness of these schemes among industrialists)

RATING

NO. OF PERSONS

PERCENTAGE

VERY USEFUL

56

38%

MODERATELY USEFUL

86

57%

NOT USEFUL

8

5%

This table shows that 57% of the people surveyed rated the schemes of governmentas amoderate useful tool to grew up in the competitive market , while 38% of the people thoughtthat these schemes are very useful. And only 5% of the persons told us that these schemesdidnt help them in their growth.


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Figure 26(showing the graphical representation of table 4.13)

. TO KNOW THAT HAVE THE BANKS BEEN SUPPORTIVE INCHANNELISING ASSISTANCE UNDER THESE SCHEMES

TABLE 4.14(showing the supportiveness of banks)

RATING

NO. OF PERSONS

PERCENTAGE

HIGHLY SUPPORTIVE

25

17%

SOMEWHAT SUPPORTIVE

72

48%

NOT SUPPORTIVE

53

35%

From the above table it is clear that there is a mixed response of people towards thesupportiveness of the banks while availing the schemes. 17% of the people didnt face anyproblem with the bank in this context , while most of the people face problem while availingany discount or subsidy. Some of the people also told that the banks are not supportive with

them.


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. TO KNOW THAT WHICH MEDIA IS MOST EFFECTIVE TO MAKETHESE SCHEMES BETTER KNOWN AMONG THE SMES

TABLE 4.15(showing the most effective media)

MEDIA

NO. OF PERSONS

PERCNTAGE

RADIO

25

13%

TELEVISION

62

32%

NEWSPAPER

80

42%

WEBSITE

20

11%

ANY OTHER

4

2%


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From the above table we analyzed that most people thinks that televesion and newspaper aethe best source of spreading information to the industrialists of the Amritsar.They told us that

they doesnt have any time to use the internate and to listen radio , so it is better to publishthe information in the newspapers or telecast through television.


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. TO KNOW ABOUT ANY SUGGESTIONS FOR THE GOVERNMENT TOADDRESS

TABLE 4.15(suggestions of industrialists towards the government)

SUGGESTIONS

NO. OF PERSONS

PERCENTAGE

GOVERNMENTSHOULD PROVIDELOAN FOR SMES ATLOW INTEREST.

45

24%

THERE SHOULD BESEPARATEDEPARTMENT INBANK FOR PROVIDINGINFORMATION

20

11%

PROPER ELECTRICITYAND WATER

60

31%

IMPROVEINFRASTRUCTURAL,ROAD AND SEVERAGECONDITION

41

21%

ANY OTHER

25

13%

Table 4.15 shows the suggestions of the industrialists towards the government- 24% of the


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owners suggest government should provide loan for SMES for there development. 31%ofthe people are unhappy with the amount of electricity and water provided to them,gov shoudalso work on this because these are tshe basic needs for the development of SMES,while21% of them were unhappy of the infracture of there area manly of roads and seve

rage of theindustrial area. We all know that roads are the life line for the transportationit is in goodcondition it will surely help the industries for there continuous growth.


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Figure 28(showing the graphical representation of table 4.15)


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FINDINGS:

The knowledge of SME rating is found to be very less in the city.

Only some industrial units deal with banks which are connected with CRISIL.

The turnover of most of the units is more than 2 crore.

Mostly units are being ISO certified but few units have SSI number.

I found that companies mostly have more than 20 employees working with them.

I have found that units which have knowledge about SME rating are being ISO certified.

Units having turnover more than 2 crore are aware of SME rating knowledge.

Rating help in meeting the financial needs by providing concession in interest rates and byproviding relaxation in collaterals.

Awareness about the various Government schemes is very less in this area.

Newspapers and television are the best source of media through which informationcan betransferred.

Rating help in bringing improvement to the business.


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SUGGESTIONS AND RECOMMENDATION

(1) As people are not much aware about SME rating, so company should work on it.

(2) Company should organize more industrial meetings and seminars so that peopleshould know more about CRISIL.

(3) Company should work with banks to give more interest rate benefit, because thisis the only thing where you can attract a client.

(4) Company should request NSIC to give more subsidies to the SMEs.

(5) Company should more advertise the rated companies so they can get more

business.

(6) As Amritsar is a very large area having more than 2,000 industries , so thecompany should appoint more manpower to tackle all the clients on time.

(7) Advertisements are the most effective way to spread information about aproduct, so I recommend CRISIL to give advertisements in Television , publish inNewspapers etc.


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CONCLUSION

After collecting data we found that the aware ness of CRISIL SME credit rating is very less

among the industrialist of Amritsar. Industries which are being rated are satisfied but they arealso not aware about all the benefits which they can get from it so if we make them awareabout benefits it will be just like customer delight.

MOU banks have high market share specially SBI and CBI which have very strong holdover the market so there are more chances for company to catch the customer . The support

from NSIC also very good as they are providing more than 60% subsidy for the rating.

The marketing team of city is working very hard but still lot of effort is required by thecompany to show commanding presence in the market.

There in need of advertisement in Amritsar reason because most of the people areunaware

about the rating and its benefits. Company should focus towards this and give effective addthrough news paper and television.

During my survey I also find that there is a lot of opportunities in east mohannagar, batalaroad and focal point and so CRISIL should try to grab this opportunities.


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BIBLIOGRAPHY

BOOKS:

1. Kotler, Philip, Marketing Management, (2004) Prentice Hall, India

2. Beri. G.S , Marketing Research, Tata Mc-Graw Hill, New Delhi.

3. Kothari .C.R. , Research Methodology Method and Technology, New AgeInternational Publication,

ARTICLES AND REPORTS:

. International Journal of Management and Enterprise Development, Issue: Volume1,Number1/ 2003. Venkataramanaiah, S. & Parashar, S.P. (2005); Enhancing the competitiveness ofSMEs through industrial clusters: The Indian experience

. Singh, Lakhwinder. & Jain, Varinder. International Journal of Business andGlobalisation, Volume 1, Number 1 / 2007. Pandey, Adya Prasad. (2007) Routes of survival of SMEs in India and its futurity astudy of pre and post reform period, MPRA Paper No. 965, posted 04. December2007. Todd Patricia, R. & Javalgi, Rajshekhar G. Internationalization of SMEs in India:Fostering entrepreneurship by leveraging information technology, InternationalJournal of Emerging Markets, Volume 2, Number 2, 2007


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. Raju, K. D. (2008), Small & Medium Enterprises (SMEs) in India: Past, Present andFuture, Rajiv Gandhi School of Intellectual Property Law, PHDCCI Working Paper. Business Line, BANKING/FINANCE: 'Banks sceptical of lending to MSMEsdespite credit ratingBusinesslineChennai: Dec 17, 2009.

. Chatterji, K. Aaron, & Michael, W Toffe. (2010), How firms respond to beingrated, Strategic Management Journal. Chichester: Sep 2010. Vol. 31, Iss. 9; pg. 917

WEBSITES:

. www.crisil.com

. http://proquest.umi.com/pqdweb?did=2079910161&sid=8&Fmt=2&clientId=129893&RQT=309&VName=PQD



. www.crisil.com/credit-ratings-risk.../sme-ratings.htm

. www.vcindia.com/pub_crisil-rscan.asp

. www.smallindustryindia.com

. http://www.smeindia.com/article2.htm

. www.nsicindia.com

ANNEXURES:

. Annexure 1(Questionn

final report for print and cd - copy

Documents