SME Fundamental Grading

SME Fundamental Grading

CARE SME Fundamental Grading is an independent and professional opinion on the fundamentals of the issuer. The grade assigned to a particular entity represents a relative assessment of the 'fundamentals' of that issuer. It is based on a detailed analysis of business fundamentals which provide inputs for investment decision & boosts investor confidence. Issuer would also be benefited as it would help them in benchmarking themselves in the market place. It would involve an in-depth assessment of the various quantitative and qualitative parameters of the issuer. Quantitative parameters include growth prospects of the industry, financial strength & operating performance of the issuer whereas, qualitative parameters primarily include management capability, promoters' evaluation, accounting policies and corporate governance practices.

The board evaluation criteria would be as under:

- Industry prospects
- Company prospects

CARE SME Fundamental Grading – Grading Symbols and Definition

SME Fundamental Grade Definition
SME Fundamental Grade 5 / 5 Strong fundamentals
SME Fundamental Grade 4 / 5 Very Good fundamentals
SME Fundamental Grade 3 / 5 Good fundamentals
SME Fundamental Grade 2 / 5 Modest fundamentals
SME Fundamental Grade 1 / 5 Weak fundamentals

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