Pace

Prowess Application for
Credit Evaluation
Centre for Monitoring Indian Economy Pvt Ltd.

Prowess Application for Credit Evaluation
A professional and independent
quantitative analysis of companies
to help you evaluate their credit
worthiness
using India’s largest database of Companies
 Standardised Audited Financial Statements

 Systematic Classification of Companies
 Enabling Comparisons across Peers
2 of 12
May 3, 2022
Companies in the PACE Database
Companies
Listed 5,134
Unlisted 47,073
Public Sector 1,348

Indian Private 48,864
Foreign Owned 1,995
Manufacturing 17,531
Electricity 1,024
Mining 280
Construction & real estate 3,975
Non financial services 17,514
Financial services 11,303
Diversified, etc. 580
Total 52,207
3 of 12
May 3, 2022
CMIE’s Benchmark Credit Evaluation
Compare a Company’s performance metrics
against empirically derived and generally
accepted benchmarks
 Liquidity ratios
 Solvency ratios
 Interest cover and interest incidence
 Profit margins
 Profit returns over investments
 Growth in profits
One summary report to give a quick overview of
a company’s credit worthiness.
4 of 12
May 3, 2022
Detailed Financial Statements
1. Income & Expenditure 4. Cash Flows
1. Income details 1. Cash flow statement
2. Expense details 2. Sources & uses of funds
3. Profits & its appropriations
5. Ratio Analysis
4. AS 22 & AS 20 disclosures
1. Profit margins
2. Liabilities 2. Returns on investments
1. Shareholders funds 3. Liquidity ratios
2. Long-term liabilities 4. Working capital cycle ratios
3. Current liabilities & provisions 5. Working cap – cost of sales method
4. Contingent liabilities 6. Turnover ratios
7. Structure of expenses
3. Assets
8. Foreign exchange transactions
1. Long-term assets
9. Banking ratios
2. Charges on assets
10.HFCs and NBFCs ratios
3. Current assets, loans & advances
4. Schedule of investments 6. Ratings by Rating Agencies
5 of 12
May 3, 2022
Solid Foundations
1. PACE presents data for the latest available 10 years
2. All financial data sourced from Annual Reports are
standardised to ensure
i. Highly granular capture of data
ii. High fidelity of values with definitions
iii. Standardisation of classification
iv. Standardisation of units of measurement
v. Standardisation of nomenclature
These ensures high quality ratios and comparability of
data across companies and over time.
3. All financial values in PACE can be traced back to
Annual Reports
4. PACE provides scanned images of Annual Reports
6 of 12
May 3, 2022
Management & Business Information
 Company background  Performance by product segments
 Industry & ownership classification  Performance by geographic segments
 Composition of board  Products manufactured/sold
 Cross directorships  Energy consumption
 Remuneration of board members  Product-wise energy consumption
 Structure of ownership  Daily share prices & total returns
 Major owners  Valuation indicators
 Subsidiaries  Rating by rating agencies
 Auditors  Mergers & acquisitions
 Capex projects
 Related party transactions
 Insider trading  News link
 Substantial acquisition of shares  Announcements to Exchanges
 Quarterly financial statements
7 of 12
May 3, 2022
Industry Benchmarks
1. CMIE has developed an industry classification system
that is specially suited to enable benchmark analysis.
2. Every company in PACE is classified by CMIE into an
appropriate industry of this industry classification.
3. CMIE generates industry benchmark financial

statements from the underlying company-wise data
and classification.
4. The PACE user-interface facilitates the comparison of a
company’s financial statements against that of the
industry benchmark.
5. CMIE’s specialised domain knowledge of industries

enables appropriate benchmark comparisons in PACE.
8 of 12
May 3, 2022
Within-Industry Company Sets (WICS)
1. Companies of an industry can have substantial
diversity – in terms of size, or geography of operations
(plants) or markets (exports) or level of gearing or
dependence on foreign borrowing, etc.
2. Based on a careful understanding of the companies
within an industry, CMIE has developed several
Within-Industry Company Sets that have similar
characteristics.
3. These Within-Industry Company Sets (WICS) enable

superior comparisons of the performance of a target
company with very finely-honed peer groups.
4. With WICS, PACE offers the best peer group
comparisons.
9 of 12
May 3, 2022
Updates & Alerts
 The PACE database is updated continuously. Data is

procured, processed and updated on an ongoing basis.
 Users can create a set of companies they are interested
in monitoring closely.
 Users may choose to select companies for which they
may like to receive email alerts when the information
on these companies are updated.
10 of 12
May 3, 2022
Statement
Prowess Application for Credit Evaluation, or PACE, is a solution
principally for credit officers in commercial banks to help them evaluate
corporate credit proposals.
It helps in the evaluation process by delivering detailed financial

statements of the last 10 years in a standardized format to enable
comparability of the financial data over time. Credit officers are able to
see the trends in financial performance of their portfolio companies.
A very useful feature of PACE is that it facilitates easy and

comprehensive comparison of the performance of a company with its
peers and with the appropriate industry benchmarks. This is where the
large database becomes useful to the bank.
Banks can customize the service to their specific requirements. CMIE

creates private custom-made reports for banks and also adds companies
to suit the requirements of banks.
The objective of the PACE service is to make the work of the credit
officers easier by removing the tedium and adding the benefits of a 11 of 12
readily available large database. May 3, 2022
Thank You

Pace

Uploaded by

Copyright:

Available Formats

Pace

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pace

Uploaded by

Copyright:

Available Formats

Prowess Application for

Centre for Monitoring Indian Economy Pvt Ltd.

using India’s largest database of Companies

 Standardised Audited Financial Statements

Public Sector 1,348

3. CMIE generates industry benchmark financial

5. CMIE’s specialised domain knowledge of industries

3. These Within-Industry Company Sets (WICS) enable

 The PACE database is updated continuously. Data is

It helps in the evaluation process by delivering detailed financial

A very useful feature of PACE is that it facilitates easy and

Banks can customize the service to their specific requirements. CMIE

You might also like