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Independent evaluation
ICRA Analytics Limited offers independent, objective, and succinct evaluation of companies by a team of experienced analysts
ICRA analytics provides Counterparty Risk Assessment and Due Diligence, ensuring independent, objective, and regular evaluation for entities. We offer SME grading for Banks and NBFCs, Vendor and Dealer Due Diligence for Corporates, Real Estate grading, MFI grading, and ESCO and Solar Power Grading for Energy companies.
MSME Grading
Evaluating Micro, Small and Medium Enterprises (MSMEs) based on all relevant factors impacting the SME's credit quality including financial, business & industry performance, and Early Warning Signals
Our grading framework focuses on four broad parameters:
- Financial strength
- Business assessment
- Management profile
- Industry risk
We analyse the factors affecting the SME’s creditworthiness - management, ownership, organisation structure, business environment, financial strength, operating efficiency and capabilities, and other non-financial parameters.
Our SME Grading is a culmination of the financial position and performance strength. It helps entities to:
- Tap concessional funding
- Conduct Due Diligence to assess risk
- Gain credibility and open business avenues
- Benchmark performance (by acting as a self-improvement tool)
- Source orders and attract investors
- Improve rapport with prospective/existing lenders
- Negotiate better terms basis the credit quality reflected by the grading
- Reduce the time involved in obtaining loan approvals
- Develop a better image to prospective/existing trade partners
- Self-evaluate and make timely course correction
It helps lenders to
- Get an objective, independent and reliable opinion on credit quality
- Improve the credit decision making process as an additional input
- Ease risk pricing and capital allocation
- Make portfolio management and monitoring more objective
Vendor/Dealer Evaluation and Due-Diligence
Undertaking field visits and conducting detailed assessment of vendor’s /dealers’ financial transactions, business processes, market performance, operational parameters, risks & controls, IT/HR systems, legal & regulatory compliance, and other specific investigations as per requirements
We grade vendors/ dealers on three broad parameters:
- Management quality
- Business strength
- Financial soundness
This process helps entities to:
- Identify the right vendor before empanelment and set credit exposure limits through independent evaluation of vendors/ dealers
Energy Service Companies (ESCO) Grading
Assessing an entity’s ability to conduct energy efficiency audits and implementing energy saving projects. This is a pre-requisite for the projects to attain Bureau of Energy Efficiency empanelment/ Funding
As per BEE requirements, ESCOs are graded on three broad parameters:
- Track Record & Market Position
- Organisational Risk
- Financial Risk
The process includes seeking relevant data from the entity; engaging with key personnel; and collecting feedback from bankers, owner’s engineers, and lender’s engineers (if applicable).
Our grading services provide the winning edge to clients. It:
- Highlights technical and financial soundness
- Acts as a differentiator amidst numerous players
- Helps acquisition of tenders from BEE, Central & State Governments, Municipal Corporations, and other sources on empanelment
- Improves operations as it acts as a self-assessment tool
Solar Power Grading
Grading system integrators (SIs), renewable energy service companies (RESCOs), manufacturers of solar-related equipment, solar project developers and start-ups in the sector.
Solar Power Grading helps entities to:
- Establish the differentiating factor amidst numerous players
- Showcase capability of project execution to various stakeholders like lenders, customer, suppliers, and community groups
- Assess performance & financial capability
- Highlight technical strength, thereby enabling tender participation
Microfinance Institutions Grading
Grading microfinance institutions (MFIs) on their relative capability to manage microfinance activities in a sustainable manner. MFI Grading provides lenders/ investors an independent assessment of the MFI business and finances
MFI grading is an instrumental tool for:
- Seeking funding from financial institutions
- Looking to gain credibility and opening new business avenues
- Working towards attracting investors
Real Estate Grading
Providing objective assessment of real estate projects and promoters' ability to deliver, thus enhancing confidence of stakeholders. Grading reduces information asymmetry, increases transparency, and evaluates development quality, track record, project attractiveness, market risk, project financials, and execution risk, regulatory and legal compliance.
Benefits of Real Estate Grading:
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For Regulators:
- Better and uniform regulatory framework
- Informed decision-making process
- Transparency for home buyers, lenders, and stakeholders
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For Home Buyers:
- Objective and independent opinion on developer's ability to deliver
- Ranking of real estate projects in a specific area
- Assists in informed decision-making
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For Lenders/Investors:
- Communication of risks associated with developer's ability and contractual obligations
- Enhanced confidence in real estate projects
- Facilitates institutional funding and access to cheaper credit
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For Promoters/Developers:
- Opportunity to showcase execution abilities, track record, and credentials
- Incentive to enhance transparency and adhere to fair trade practices
- Enhanced credibility and branding of the promoter/developer/project
- Increased capability to attract buyers, investors, and financial institutions
Continuous Monitoring
Continuously monitoring graded entities in a pre-defined frequency based on financial and alternate data to ensure that the organisation is sustaining its performance, compliances, systems & processes, and client expectations on specific parameters.