New Delhi, May 5 (KNN) The Ministry of Micro, Small and Medium Enterprises (MoMSME) has incorporated additional conditions in the guidelines for selection of units for rating under Performance and Credit Rating Scheme (PCRS).

According to the additional guideline, the unit with turnover of Rs 1.00 crore or above will be eligible under the scheme.

Now the case of rating should have been recommended by a bank or NBFC, the new guideline states.

The additional conditions will be applicable for new cases taken up by the rating agencies from May 1, 2017 onwards.

Performance & Credit Rating Scheme was formulated in consultation with Industry Associations, Indian Banks’ Association (IBA) and Rating Agencies, with the objective of creating awareness amongst Small Scale Units (now known as micro & small enterprises) about the strengths and weaknesses of their existing operations and to provide them an opportunity to enhance their organizational strengths.

Rating under the scheme is being carried out through empanelled rating agencies i.e. CRISIL, ONICRA, ICRA, SMERA, Brickwork, India Ratings (earlier known as FITCH) and CARE.

The rating methodology under the Scheme is a combination of credit and performance factors including parameters measuring operational, financial, business and management risks.

A uniform rating scale, covering the combination of credit and performance factors, is prescribed under the scheme, which is being followed by all empanelled rating agencies.

Micro & Small enterprises are at liberty to select any of the rating agencies. The entire process of rating is to be completed by the rating agency in a month from the date of receipt of all information from the applicant unit. (KNN Bureau)