Guidelines on Minimum Information Required for the Rating

Last Reviewed On: April 20, 2021 (Version 4) 

 

To complete a rating assignment and to conduct surveillance and reviews, the Organization undergoing the rating process has to furnish, proactively, all details about past performance and future plans of the Organization even that of confidential nature. By signing a rating agreement, the Organization agrees to ensure availability of such information on a continuous basis. Access to such information forms the basis of timely and appropriate rating action. Acuité reserves the right to conduct the rating exercise / review with publicly available information, if the minimum requirement of information is not made available to Acuité. The rated entity will have to furnish the following:

  1. Annual Reports / Audited Financial Statements for last 3 years (or since inception, if entity is incorporated within last 3 years)
  2. Provisional Financial Statements (Quarterly / Half-yearly)
  3. ‘No Default Statement’ in prescribed format and details of any past default / delay in meeting the debt obligations
  4. Bank statement(s) for the last 6 months for the cash credit account/s and the term loan account/s

In addition, entities to be rated have to submit the following (if applicable) as and when Acuité calls for the same:

  1. Financial projections for the next two years with relevant assumptions and Year to Date financials of the current financial year
  2. Sanction letter issued by the bank (preferably, the most recent)
  3. Details on project / capital expenditure
  4. Top customers/suppliers details
  5. Future business plan or corporate actions (acquisition, mergers, business restructuring etc.)
  6. Change in management
  7. Reason and comments on status of non-co-operation or suspension with any previous CRA (if applicable)
  8. Project wise cash flow statements (applicable to real estate firms)
Acuité will seek information (Points 1 to 4 and Points 1 to 9 mentioned above) through one or more modes including e-mail, letters and telephone calls.