GJEPC organised a webinar for micro, small and medium enterprises (MSMEs) on 10th March, in which the attendees were briefed about the importance of Credit Rating and various parameters involved in rating the gem and jewellery industry.

Among the distinguished speakers on the panel were Saikat Roy, Director-West Care Ratings and Hitesh Avachat, Group Head – Corporate Ratings of Care Ratings. The session was moderated by Manish Jiwani, MSME Convener, GJEPC.

The highlights of discussion included:

Concept Of Credit Rating & Rating Framework:

• Concept and characteristics of Credit Rating
• Risk Assessment Framework for Credit Rating: External and Internal Risk
• Rating process: Bank loan Ratings
• Benefits of Credit Rating to corporates

Benefits To Companies

• Lower cost of borrowing
• Proper pricing of debt instruments and reach out to new investors
• Faster processing of loan applications by banks.
• Improves corporate Image and help in relative benchmarking with peers.
• Helps in building better terms with both suppliers and customers 
• Meet 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

The webinar ended with a vote of thanks by Western Regional Chairman Ashok Bhai Gajera.