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Indian Hotel Industry:April 2017: Monthly Updates        Supreme Court’s order disallowing tariff relief for APL and CGPL is a negative development; however tariff relief likely for projects affected by shortfall in domestic coal        Indian Mining And Construction Equipment Industry: April 2017: Monthly Updates        FII inflows into Indian debt market in FY2018 expected to be limited to US$5-10 billion, led by G-sec, corporate debt        FII inflows into Indian debt market in FY2018 expected to be limited to US$5-10 billion, led by G-sec, corporate debt        Indian Sugar Sector: April 2017: Monthly Update        Wind capacity addition in near term to depend upon firm plans for bidding & PPA signing by utilities; solar capacity addition to remain strong (7-7.5 GW) backed by project pipeline        Indian Retail Non-Banking Finance Market: Retail NBFCs expected to witness growth moderation and asset quality pressures in the near-medium term        All available volume-based indicators in the green in March 2017, in the most broad-based uptick since the note ban        Direct Port Delivery model faces hurdles in attracting more registrations as customers continue to prefer the CFS route       
 
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Supreme Court’s order disallowing tariff relief for APL and CGPL is a negative development; however tariff relief likely for projects affected by shortfall in domestic coal
Indian Mining And Construction Equipment Industry: April 2017: Monthly Updates
Indian Hotel Industry:April 2017: Monthly Updates
FII inflows into Indian debt market in FY2018 expected to be limited to US$5-10 billion, led by G-sec, corporate debt
More...
 
FINANCIAL STRENGTH GRADING

An ICRA Financial Strength Grading is a symbolic indicator of ICRA's current opinion on the relative financial profile of the shipbuilding company concerned. An ICRA Financial Strength Grading is not a comment on any specific debt servicing capability of the shipbuilder.

The focus of Financial Strength Grading exercise is on evaluating the business and financial risks of the concerned ship building company. ICRA forms an opinion on a shipbuilder’s business risk by analysing, among other factors, its operating environment, delivering capabilities of its shipyard, scalability (in relation to business plans), and management and systems. Financial risk is assessed through an evaluation of factors including the shipbuilder's liquidity position, profitability, coverage and capitalisation profile.

ICRA Financial Strength Grading Scale for Shipbuilders

Financial Strength Grade 1    Highest financial strength
Financial Strength Grade 2     High financial strength.
Financial Strength Grade 3    Adequate financial strength
Financial Strength Grade 4    Moderate financial strength
Financial Strength Grade 5    Inadequate financial strength
Financial Strength Grade 6    Weak financial strength
Financial Strength Grade 7    Poor financial strength
Financial Strength Grade 8    Lowest financial strength

Process:

The methodology for the Grading of shipbuilding entities entails analysis of all relevant risks under two broad categories: business risk and financial risk. The assessment process commences at the request of the entity concerned. Once the mandate letter is received from the entity, a team of ICRA analysts takes up the task of preparing a report on that entity, highlighting its business and financial risks. Subsequently, the team prepares a report and presents it to the Rating/Grading Committee for assignment of grade. The whole process is highly interactive. ICRA ensure strict confidentiality of all information collected during the assessment process.

 

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