Provision: Whether an asset finance company having capital to risk asset ratio less than 15% or an investment company or a loan company as defined in para 21(1)(ia),(vi) and (viii) repectively of NBFC Acceptance of Public Deposits(RBI) directions,1998 is accepting ”public deposits” without MINIMUM INVESTMENT GRADE CREDIT RATING FROM AN APPROVED CREDIT RATING AGENCY
specified companies who are accepting public deposits in such companies auditor has to comment whether these companies are having MIGR rating from credit rating agency
credit rating agencies have specified MIGR rating, that means if deposits have this minimum rating then only investor should think of investing in them.
Below is example for the same, so if they dont have MIGR and still raising deposits, then auditor will have to report
Name of rating agencies
Nomenclature of minimum investment grade credit rating (MIGR)
FA- (FA MINUS)
MA- (MA MINUS)
CARE BBB (FD)
FITCH Ratings India Pvt. Ltd.
tA-(ind)(FD) Equal to NOF
It may be added that A- is not equivalent to A, AA- is not equivalent to AA and AAA- is not equivalent to AAA.