GJEPC held a webinar for micro, small & medium enterprises (MSMEs) on 22nd April to inform them about the importance of Credit Rating and various parameters involved in rating the gem and jewellery industry.

The interactive panel discussion featured speakers Hitesh Avachat, Group Head – Corporate Ratings, Care Ratings and Ujjwal Patel, Sr. Manager, Care Ratings. More than 100 attendees from India and abroad participated in the webinar.

The topics covered during the knowledge-sharing session were:

Concept of credit rating & rating framework

• Concept and characteristics of Credit Rating
• Risk Assessment Framework for Credit Rating: External and Internal Risk which involve Industrial Risk, Management Risk, Business Risk, and Financial Risk.
• Rating process: Various processes involved in rating
• Bank loan Ratings under Basel-II: Care Ratings & Risk Weightage
• Benefits of Credit Rating to corporates

Benefits to Companies

• Lower cost of borrowing
• Enables proper pricing of debt instruments and reach out to new investors
• Faster processing of loan applications by banks
• Improvement of Corporate Image and help in relative benchmarking with peers
• Building better terms with both suppliers and customers
• Meeting regulatory requirements as part of sanction terms of bank and assists in self-assessment and areas of improvement

Parameters of Rating for Gold - Value Chain:

• Gold Mining, Refining, Bullion Trading, Jewellery Manufacturing, Jewellery wholesale/Retail

Parameters of Rating for Diamond - Value Chain:

• Mining, Rough Trading, Polished Manufacturing and Distribution, Jewellery Manufacturing, Jewellery Wholesale/Retail

Rating Methodology

• Risk Factors : Management, Business, Financial and Industry

Cash Flow & Liquidity Assessment

Survey of MSME Rating User was shared

Industry Updates were given

Rating Dispersion