Credit Analysis and Research Limited (CARE)

Overview The CARE was promoted by investment companies, banks and finance companies. CARE is recognized by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) etc. The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India.

The CARE was promoted by investment companies, banks and finance companies.

CARE is recognized by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) etc.

The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India.

FEES STRUCTURE Initial Rating Fees Fixed Deposit Debenture Commercial Papers Issuers Rating

Initial Rating Fees

Fixed Deposit

Debenture

Commercial Papers

Issuers Rating

RANGE OF RATING AND GRADING SERVICES Banks and FI ratings Sub-sovereign ratings Structured Finance Ratings Insurance/ CPA ratings Infrastructure ratings Corporate Governance ratings Corporate ratings Services Construction Grading Grading of MTI Fund credit Quality rating SME/SSI ratings IPO Grading Issuer Rating

What ratings do not measure They are not recommendations to invest. They do not take into account many aspects which influence the investment decision. Ratings do not take into account the risk of prepayment of issuer.

They are not recommendations to invest.

They do not take into account many aspects which influence the investment decision.

Ratings do not take into account the risk of prepayment of issuer.

CARE's Role in Indian Capital Market Investors. Issuers of Debt Instruments. Financial Intermediaries. Business Counterparties. Regulators.

Investors.

Issuers of Debt Instruments.

Financial Intermediaries.

Business Counterparties.

Regulators.

RATING CRITERIA/METHODOLOGY information provided by the company In-house database and data from other sources that CARE considers reliable. CARE does not undertake unsolicited ratings. The primary focus of the rating exercise is to assess future cash generation capability and their adequacy to meet debt obligations in adverse conditions. contd………

information provided by the company

In-house database and data from other sources that CARE considers reliable. CARE does not undertake unsolicited ratings.

The primary focus of the rating exercise is to assess future cash generation capability and their adequacy to meet debt obligations in adverse conditions.

contd………

The analytical framework of CARE's rating methodology is divided into two interdependent segments. The first deals with the operational characteristics and the second with the financial characteristics. Besides quantitative factors, qualitative aspects like assessment of management capabilities play a very important role in arriving at the rating for an instrument. The relative importance of qualitative and quantitative components of the analysis vary with the type of issuer.

The analytical framework of CARE's rating methodology is divided into two interdependent segments. The first deals with the operational characteristics and the second with the financial characteristics.

Besides quantitative factors, qualitative aspects like assessment of management capabilities play a very important role in arriving at the rating for an instrument.

The relative importance of qualitative and quantitative components of the analysis vary with the type of issuer.

Rating Process CLIENT CLIENT REQUEST FOR RATING ASSIGNS RATING TEAM Submits information and detailed schedules The team analyses the information Interacts with team, responds to queries and provides additional data necessary for the analysis . Team interacts with client, undertakes site visits and analyses data submitted by client RATING COMMITTEE awards rating. Rating Letter & rationale issued to client Rating Kept Under No Periodic Surveillance Press Release, published in website, CAREVIEW and Rating Reckoner Appeal for Review of rating (once) Accepts Rating? YES NO

RESEARCH METHODOLOGY TREND ANALYSIS ECONOMIC SCINERIO MEET TOP CLASS PEOPLE I & II SOURCES FUTURE PERSPECTIVES KEY PLAYERS LATEST DEVELOPMENT Services 5 YEAR BACK RECORD MAKE SURVEY STRESS ON FACTS GLOBAL COMPETITION GOVT RULES & POLICIES EXTENT OF COMPETITION

Rating Symbols Long term / Medium term debt instruments CARE AAA: Highest Safety CARE AA: High Safety CARE A: Adequate Safety CARE BBB: Moderate Safety CARE BB: Inadequate Safety CARE B: Low Safety CARE C: Very high-Risk CARE D: Defaulted Short term instruments PR1: lowest credit risk PR2: higher credit risk PR3: high credit risk PR4: Very high credit risk PR5: default on maturity CARE assigns '+' or '-' signs to be shown after the assigned rating wherever necessary) to indicate the relative position within the band covered by the rating symbol.

Long term / Medium term debt instruments

CARE AAA: Highest Safety

CARE AA: High Safety

CARE A: Adequate Safety

CARE BBB: Moderate Safety

CARE BB: Inadequate Safety

CARE B: Low Safety

CARE C: Very high-Risk

CARE D: Defaulted

Short term instruments

PR1: lowest credit risk

PR2: higher credit risk

PR3: high credit risk

PR4: Very high credit risk

PR5: default on maturity

CARE assigns '+' or '-' signs to be shown after the assigned rating wherever necessary) to indicate the relative position within the band covered by the rating symbol.

Rating Symbols for SSI SE 1A SE 1B SE 1C SE 2A SE 2B SE 2C SE 3A SE 3B SE 3C SE4A SE 4B SE 4C SE 5A SE 5B SE 5C

SE 1A

SE 1B

SE 1C

SE 2A

SE 2B

SE 2C

SE 3A

SE 3B

SE 3C

SE4A

SE 4B

SE 4C

SE 5A

SE 5B

SE 5C