Last Reviewed On: September 30, 2023 (Version 2)

1. Introduction:

Acuite is committed to ensure accuracy and integrity of its credit ratings. To achieve this, Acuite conducts regular monitoring of its outstanding ratings and carries out Material Event Reviews (MER) triggered by various factors. In addition to events specified by SEBI, Acuite conducts checks including wilful defaulters, regulatory compliance breaches, promoter's share pledge, and so on.

2. Monitoring Checks and Frequencies:

Acuite performs 13 different monitoring checks categorized into Daily (5 checks), Monthly (6 checks), and Quarterly (2 checks). This list of checks is subject to an annual review to ensure relevancy and effectiveness.

3. Event Occurrence:

The day of event occurrence, announcement, news, or publication of results is designated as 'T'.

4. Alert Generation:

Latest by 'T+2' working days, the issuer monitoring team generates alerts based on the checks conducted and classifies them as either critical or non-critical.

5. MER Forum Evaluation:

Latest by 'T+2' working days, the MER Forum, comprising any 2 out of the 3-member pool, evaluates critical alerts. The members are independent of the analytical team and have a minimum work experience of 10 years in functions like analytical operations or process control or quality control. Based on its assessment of criticality, the MER Forum decides whether or not a case has to be reviewed at the Rating Committee (RC) and directs the analytical team accordingly. MER Forum has to state the rationale, if it is of the view, that the trigger generated does not warrant a review of the rating at the Rating Committee.

6. Interaction with Issuer Entity:

As part of the MER process, the analytical team seeks interaction with the issuer entity to obtain clarifications regarding the alert. However, to ensure timely closure of the MER process, there might be instances where the analytical team proceeds to the RC even in the absence of management interaction.

7. Presentation at Rating Committee (RC):

Cases referred by the MER Forum are presented to the RC with an abridged note and the analyst's recommendation for deliberation. This ensures a comprehensive evaluation of the critical alerts.

8. Publication of Outcome:

The rating outcome is published in accordance with regulatory timelines, which is 'T+7' working days from the event occurrence.

Acuite's MER policy reflects its commitment to maintain the credibility of its credit ratings. By conducting comprehensive checks, engaging with issuer entities, and involving the MER Forum to independently evaluate alerts, Acuite ensures the accuracy and transparency of its ratings even in the face of material events. This policy is a crucial element in upholding Acuite's standards of quality and integrity in the credit rating process.