{"id":873,"date":"2018-09-05T10:05:44","date_gmt":"2018-09-05T10:05:44","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=873"},"modified":"2023-10-26T06:02:52","modified_gmt":"2023-10-26T06:02:52","slug":"why-your-business-needs-to-have-a-crisil-sme-rating","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/why-your-business-needs-to-have-a-crisil-sme-rating\/","title":{"rendered":"Why Your Business Needs To Have A CRISIL SME Rating"},"content":{"rendered":"<p style=\"text-align: justify;\">As most of us are aware, a good credit record is of utmost importance, not just for individuals but for businesses too. It is imperative that all owners of a business maintain a good credit record and their SME too has a healthy credit rating.<\/p>\n<p style=\"text-align: justify;\"><b>But first, what\u2019s a credit rating?<\/b><\/p>\n<p style=\"text-align: justify;\">A Credit Rating is a measure of your company\u2019s creditworthiness as given to your company by an authorized agency like CRISIL (formerly Credit Rating Information Services of India Limited) post submission of a rating request. CRISIL evaluates the documents submitted to them and interacts with the company management before giving the business a rating known called the&nbsp;<b>CRISIL SME Rating<\/b>. A CRISIL SME Rating makes the loan approval process easier while also giving your business credibility among&nbsp;<a href=\"http:\/\/www.crisil.com\/ratings\/benefits-crisil-ratings.html\" target=\"_blank\" rel=\"noopener\">other<\/a>&nbsp;benefits. You can visit he CRISIL website and click on SME Rating or click&nbsp;<a href=\"http:\/\/www.crisil.com\/ratings\/sme-ratings.html\" target=\"_blank\" rel=\"noopener\">here<\/a>&nbsp;to learn more.<\/p>\n<p style=\"text-align: justify;\"><b>What is the application process to obtain a CRISIL SME Rating?<\/b><\/p>\n<p style=\"text-align: justify;\">If you are like the umpteen number of business owners who delay applying for a credit rating because of the daunting paperwork, read on. We\u2019re here to break down the process and help you with the paperwork involved.<\/p>\n<p style=\"text-align: justify;\">Listed below are the documents required for a CRISIL SME Rating as per the official&nbsp;<a href=\"https:\/\/www.crisil.com\/ratings\/sme-ratings.html\" target=\"_blank\" rel=\"noopener\">website<\/a>:<\/p>\n<p style=\"text-align: justify;\"><b>Documents Required<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li>Authority letter to sign CRISIL SME Rating application<\/li>\n<li>Documents supporting registration (memorandum and articles of associations, partnership agreements, registration documents)<\/li>\n<li>Documents supporting name change and legal structure<\/li>\n<li>Brief write-up on history of the company<\/li>\n<li>Documents supporting changes in capital (if applicable).<\/li>\n<li>Copy of income tax, sales tax, excise and wealth tax returns, if filed<\/li>\n<li>Copy of the audited accounts for the last three years (where accounts for the last year have not been audited, provisional accounts duly certified by a Chartered Accountant, along with two years audited accounts, are to be submitted)<\/li>\n<li>Copy of insurance policies of assets<\/li>\n<li>Certified net worth statements of all directors\/ partners\/proprietor<\/li>\n<li>Copy of the project report containing a brief project profile, cost of project, source\/means of finance in case of new project\/expansion<\/li>\n<li>Details of subsidy and tax concession available, if any<\/li>\n<li>Quality certificates, export awards won, membership of any associations, etc<\/li>\n<li>Any other information that would enable us to understand your business better<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Information Required<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li>Name of the applicant unit and address:<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Address of Registered Office<\/p>\n<p style=\"text-align: justify;\">b. Address of Factory<\/p>\n<p style=\"text-align: justify;\">c. Address for Communication<\/p>\n<p style=\"text-align: justify;\">d. Name, Designation and details (tel. no &amp; mobile no) of contact person<\/p>\n<p style=\"text-align: justify;\">(all the above addresses must include District, State, Pin Code, Telephone No.\/Fax No. and email address)<\/p>\n<ul style=\"text-align: justify;\">\n<li>Constitution: Proprietorship\/ Partnership\/ Private Limited Co.\/ Limited Co.\/ Co-op. Society.<\/li>\n<li>Date of establishment\/ incorporation<\/li>\n<li>Industry Information<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Industry segment<\/p>\n<p style=\"text-align: justify;\">b. Sub-segment of industry<\/p>\n<p style=\"text-align: justify;\">c. Products<\/p>\n<p style=\"text-align: justify;\">Details of Promoters:<\/p>\n<p style=\"text-align: justify;\">a. Name(s) of Proprietor\/ Partners\/ Directors<\/p>\n<p style=\"text-align: justify;\">b. Age<\/p>\n<p style=\"text-align: justify;\">c. Father\/Husband\u2019s Name<\/p>\n<p style=\"text-align: justify;\">d. Shareholding (percentage) in Company<\/p>\n<p style=\"text-align: justify;\">e. Residential Address<\/p>\n<p style=\"text-align: justify;\">f. Net worth in Rupees (lakhs) along with CA certified statement<\/p>\n<p style=\"text-align: justify;\">g. Qualification<\/p>\n<p style=\"text-align: justify;\">h. Nature of Experience with No of years<\/p>\n<p style=\"text-align: justify;\">i. Responsibilities in Firm\/ Company:<\/p>\n<p style=\"text-align: justify;\">j. Responsibilities in other Businesses<\/p>\n<p style=\"text-align: justify;\">(Passport size photos of all the promoters to be enclosed)<\/p>\n<ul style=\"text-align: justify;\">\n<li>Details of Associate Concerns:<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Name<\/p>\n<p style=\"text-align: justify;\">b. Nature of Business<\/p>\n<p style=\"text-align: justify;\">c. Sales, Net worth, and Debt as on March 31 of the last FY<\/p>\n<ul style=\"text-align: justify;\">\n<li>Details of existing borrowing\/banking arrangements:<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Name of Financial Inst.\/ Bank\/ Lenders<\/p>\n<p style=\"text-align: justify;\">b. Nature of assistance\/ loan\/ limit availed<\/p>\n<p style=\"text-align: justify;\">c. Amount in Rupees (lakhs)<\/p>\n<p style=\"text-align: justify;\">d. Self declaration regarding conduct of the account<\/p>\n<ul style=\"text-align: justify;\">\n<li>Production capacity:<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Name of Product<\/p>\n<p style=\"text-align: justify;\">b. Units<\/p>\n<p style=\"text-align: justify;\">c. Installed Capacity<\/p>\n<p style=\"text-align: justify;\">d. Actual Production<\/p>\n<ul style=\"text-align: justify;\">\n<li>Customers\u2019 Reference: (please list 5 top customers of your firm\/ company)<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Name of the customer<\/p>\n<p style=\"text-align: justify;\">b. Percentage in total sales<\/p>\n<p style=\"text-align: justify;\">c. Location<\/p>\n<p style=\"text-align: justify;\">d. Name and details (tel. no.\/ mobile no.) of contact person of customers<\/p>\n<ul style=\"text-align: justify;\">\n<li>Suppliers\u2019 Reference: (please list 5 top suppliers of your firm\/ company)<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Name of the supplier<\/p>\n<p style=\"text-align: justify;\">b. Percentage in total purchases<\/p>\n<p style=\"text-align: justify;\">c. Location<\/p>\n<p style=\"text-align: justify;\">d. Name and details (tel. no.\/ mobile no.) of contact person of suppliers<\/p>\n<p style=\"text-align: justify;\"><b>Additional Information Required:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li>Details of present orders in hand<\/li>\n<li>Percentage of total imports and exports in the business<\/li>\n<li>Specific information from the promoters<\/li>\n<li>Vision of top management<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">a. Future plans for expansion\/ diversification<\/p>\n<p style=\"text-align: justify;\">b. Marketing arrangements<\/p>\n<p style=\"text-align: justify;\">c. Details litigation against the company\/ firm, if any<\/p>\n<p style=\"text-align: justify;\">Now that you have the information required for a CRISIL SME Rating request submission, you can go ahead and apply for your rating today. Don\u2019t let the lack of a credit rating come in the way of the smooth functioning of your company!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As most of us are aware, a good credit record is of utmost importance, not just for individuals but for businesses too. It is imperative that all owners of a business maintain a good credit record and their SME too has a healthy credit rating. But first, what\u2019s a credit rating? A Credit Rating is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,155],"tags":[],"class_list":["post-873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-msme"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=873"}],"version-history":[{"count":1,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/873\/revisions"}],"predecessor-version":[{"id":14121,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/873\/revisions\/14121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/5066"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}