The rating exercise undertaken by Infomerics is based on information provided by the issuing entity, in-house database and data from other sources that Infomerics considers reliable. Infomerics undertakes only solicited ratings. The primary purpose of the rating exercise is to evaluate the future cash generation capability and their adequacy to meet debt obligations in the future. The analysis therefore attempts to examine the key determinants of the business and the probabilities of change in these fundamentals, which could affect the repayment capacity of the borrower. The analytical framework of rating methodology adopted by Infomerics is broadly classified into two inter-dependent segments. The first deals with the operational factors and the second with the financial characteristics. Besides quantitative factors, qualitative aspects like assessment of management capabilities play a very important role in arriving at the rating for an instrument. The relative importance of qualitative and quantitative components of the analysis varies with the type of issuer. Rating determination is a matter of experience and holistic judgement, based on the relevant quantitative and qualitative factors affecting the credit quality of the issuer.