The small and medium enterprises today constitute a very important segment of the Indian economy. The development of this sector came about primarily due to the vision of our late Prime Minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of small scale enterprises. SMEs sector has emerged as a dynamic and vibrant sector of the economy. Today, it accounts for nearly 35% of the gross value of output in the manufacturing sector and over 40% of the total exports from the country. In terms of value added this sector accounts for about 40% of the value added in the manufacturing sector. The sector's contribution to employment is second highest next to agriculture.
The SMEs sector has grown rapidly over the years. The growth rates during the various plan periods have been very impressive. The number of small-scale units has increased from an estimated 6.79 million units in the year 1990-91 to over 13 million in the year 2007-08. When the performance of this sector is viewed against the growth in the manufacturing and the industry sector as a whole, it instills confidence in the resilience of the SMEs Essector.
Process Of RatingThe validity of a rating shall be for a period of one year from the date of issue of the rating letter.
As a step in this direction, a need was felt for introducing a Rating Scheme for the Micro and Small Enterprises. It is expected that the Rating Scheme would encourage Micro and Small Enterprise sector in improving its contribution to the economy by way of increasing their productivity, since a good rating would enhance their acceptability in the market and also make access to credit quicker and cheaper and thus help in economizing the cost of credit. Besides, the rating would also infuse a sense of confidence amongst the buyers for taking a decision on the options of sourcing material from Micro and Small Enterprises.
FISCO RATING is one of specialized Rating agency for MSME Rating which gives a proper feedback and third party view on Performance and financial background of any SME. We provide a kind of health check up for any SME. The units rating shall be a combination of performance and creditworthiness of the unit. The MSEs rating methodology shall cover a combination of credit and performance factors including parametersmeasuring operational, financial, business and management risks.