27-02-2013, 11:14 AM
VENDOR RATING
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INTRODUCTION
It is not easy to identify good suppliers. Records maintained or procured from some other sources about the vendors help in their evaluation and rating. Usually a combination of price, quality, quantity, delivery time and service is used to rate the vendors, giving relevant weight ages to those factors. In addition, a checklist is used to facilitate from the department standpoint.
Some of the points are
Reliability
Technical capabilities
Convenience
Availability
After-Sales Service
Sales Assistance
DISADVANTAGES
Biased rating and misrepresentations
Static study
Concealment of material information
Rating is no guarantee for soundness of company
Human bias
Reflection of temporary adverse conditions
Down grade
Difference in rating of two agencies
CRISIL rating Process
Request of the Company
Assignment to analytical team
Obtaining and processing of data
Findings presentation
Communication of decision
Monitoring of change of rating
CRISIL Rating Methodology
CRISIL analyses five factors while assessing the instrument. These five factors are as follows:
Business analysis
Industry risk
Market position of the company within the industry
operating efficiency
Legal position
INVESTMENT INFORMATION AND CREDIT RATING AGENCY
ICRA ltd, (formerly Investment Information and Credit Rating Agency of India Ltd.). ICRA has been promoted by Industrial Finance Corporation Of India as its main promoter with its headquarters at New Delhi. It is an independent company limited by shares with an authorized share capital of Rs,10crore against which Rs,5crore is paid up. IFCI has contributed by UTI, LIC, GIC, Central bank of India, UCO Bank etc.
CREDIT ANALYSIS AND RESEARCH LIMITED
CARE is a credit rating and information services company promoted by IDBI jointly with Canara bank, UTI, Private sector banks, and financial service companies to offer credit rating information and equity research services to Indian industry and institutions. CARE commenced its operation on October 1993 and announced its 1st rating in 1993.