Home / Knowledge / News / Apparel/Garments / TEA decries proposal to appoint rating agencies
TEA decries proposal to appoint rating agencies
Jun '10
Shri. A.Sakthivel President said that he has sent a letter to Dr. D. Subba Rao, Governor Reserve Bank of India , Mumbai requesting to advise the banks not to insist for rating of the units by outside Rating Agencies for another three years and the copy of letter is enclosed.

We would like to bring your kind attention to the issue that banks are now insisting the knitwear export units to go for a rating given by the assigned agencies, failing which, the banks may levy their customers.

We strongly feel that the exact performance of the unit, financial condition and other qualitative factors that have bearing on credit worthiness of the concerned units could be gauged by their bankers only, because of their long association with the customers, rather than outside rating agencies. It may be noted that the decline in performance of the units for a particular crucial period would be well judged by the banks and they could also ascertain the fact that the concerned unit could be retain its performance with the necessary impetus at right time.

Our concern is that the Rating Agencies are charging fees in the range of Rs.5 lakhs to Rs.10 lakhs and we wish to make a note of it that payment of charges to the outside Rating Agency may not be possible at a time when the Exporting units in Tirupur are finding it difficult to meet the statutory financial requirements, and taking a lot of efforts to cut down their costs mainly to sustain in the business.

If the guidelines prescribe certain qualifying criteria, the units concerned may be rated by agency like SMERA.

Considering the crucial period, we request you to kindly advise the banks not to insist for rating of the units by outside Rating Agencies for another three years.


Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search