Tamil Nadu - Coimbatore   

SIEMA signs pact for credit rating

Photo: M. Periasamy

For members: Jayakumar Ramdass, president, Southern India Engineering Manufacturers’ Association (second left), and Parag Patki, chief executive officer, SMERA, after signing the agreement in Coimbatore on Friday. —

COIMBATORE: The Southern India Engineering Manufacturers’ Association (SIEMA) has signed a memorandum of understanding with the SME Rating Agency of India (SMERA) for credit rating of its members.

A release from the association said five of its members submitted applications to the agency at the function organised here on Friday for signing the agreement.

Jayakumar Ramdass, SIEMA president, highlighted the importance of the industries getting the credit rating.

He appealed to the SMERA to evolve standards among the credit rating agencies.

Parag Patki, chief executive officer of SMERA, said the agency would offer a 20 per cent discount on the rating fees to the association members who applied before December 31.

The agency was a joint initiative of the Small Industries Development Bank of India, Dun and Bradstreet Information Services India Private Limited and several leading banks.

The credit rating scheme would serve as a third-party opinion on the capabilities and credit-worthiness of the small and medium enterprises, and an independent evaluation by an accredited third party would be accepted by banks, financial institutions, customers and buyers.

With the one-year agreement, the two organisations would exchange information on the rules and regulations and the policies and procedures related to the availability of finance, credit for the small and medium enterprises. The two organisations would also conduct or sponsor surveys and joint cluster studies. The engineering associations would disseminate information on the concept of credit rating.

Mr. Patki said he would hold discussions with other agencies on the standard among the credit rating companies.

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