Who are the primary users of Credit Rating Services?

The rating service can be used by the following entities:

• 1.Banks
• 2.Financial Institutions such as leasing and house financing companies
• 3.Governments and Regulators
• 4.Financial Intermediaries/Merchant Banks/ Issue Managers
• 5.Loan syndicators
• 6.Business Houses
• 7.Corporate Entities
• 8.Investors

what are the benefits of credit reting

To the Ratings Entities

• Branding your organization with international standards
• Good rating will assist to source finance at cheaper rate while bad rating will assist an organization to take right step for improvement
• Know your business through the eye of independent professionals of high standard
• Increase cost effectiveness of an organization

What does Credit Rating actually mean?

Credit RatingRatings are the opinion of rating agencies on the creditworthiness of issuers or issues in terms of their/ its ability and willingness of discharging its obligations in timely manner. Ratings are issued on the basis of information supplied to CRISL by the issuer or its officials and also on the basis of information CRISL believes to be reliable.

Effect of revenue expenditure and correction

When revenue expenditure treated/recorded as capital expenditure the following error/effect  will incur

Asset           Expense          Profit

increase                           decrease                                     increase

Effect of capital expenditure and correction

When capital expenditure treated/recorded as revenue expenditure the following error/effect  will incur

Asset           Expense          Profit

decrease                           increase                                     decrease

Rules for bank statement

When the company receives its bank statement, the company should verify that the amounts on the bank statement are consistent or compatible with the amounts in the company's Cash account in its general ledger and vice versa.