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APPENDIX - A

QUESTIONNAIRE

I. Personal Information

1.1 Name :
1.2 Amount of Investment : Up to Rs. 1,00,000 [ ] Rs.1,00,001-Rs.2,00,000[]
Rs.2,00,001-Rs.5,00,000 [ ] Above Rs.5,00,000[
1.3 Educational Qualification : 10th [ ] +2 [ ] UG [ ] PG [ ]
1.4 Age : 20-30 [ ] 31-40 [ ] 41-50 [ ] 51& above[ ]
1.5 Gender : Male [ ] Female [ ]
1.6 Occupation : Private sector [ ] Professional [ ]
Government Service [ ] Business [ ]
1.7 Income : Below Rs.1,00,000 [ ] Rs.1,00,001-Rs.2,00,000 [ ]
Above Rs.2,00,000 [ ]
1.8 Savings : Up to 10% [ ] 11%-20% [ ] 21%-30% [ ]
31% & above [ ]
1.9 Place of residence : Rural [ ] Semi-urban [ ] Urban [ ]
City [ ]
1.10 Marital Status : Married [ ] Unmarried [ ]

1.11 Number of dependents : 1-2 [ ] 3-4 [ ] 5-6 [ ] 7 & above [ ]

1.12 Spouse : 1-2 [ ] 3-4 [ ] 5-6 [ ] 7 & above [ ]

II. Investment Information

2.1. Invested in the instruments of

1. Corporate sector [ ] 2. Banking sector [ ] 3. Others [ ]

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2.2. Period of investment

1. Less than 1 year [ ] 2. 1-3 years [ ] 3. More than 3 years [ ]

2.3. Investment information gathered from

1. Published information [ ] 2. Television and Internet [ ]

3. Brokers [ ] 4. Friends/Relatives [ ] 5. Others [ ]

2.4. Percentage of investment in

1. Shares _____ % 2. Debentures _____ %

3. Commercial paper _____ % 4. Post office _____ %

5. Fixed deposit _____ % 6. Others _____ %

2.5. Purpose of investment

1. For tax exemption [ ] 2. Security [ ]

3. Capital appreciation [ ] 4. Returns [ ]

2.6. Expected return on investment

1. 10% [ ] 2. 20% [ ] 3. 30% & above [ ]

2.7. Which factor do you consider before investment?

1. High risk and High return [ ]

2. Moderate risk and Moderate return [ ]

3. Low risk and Low return [ ]

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III. Awareness of investors about credit rating

3.1 Investment decision taken on the basis of credit rating

1. Yes [ ] 2. No [ ]

3.2 Will you search Credit rating information by yourself?

1. Yes [ ] 2. No [ ]

3.3 Your knowledge about Credit rating

1. Simply a grading system [ ]

2. It shows the exact financial position of the company [ ]

3. An indicator of credit risk [ ]

4. Just a marketing strategy of the issuing company [ ]

5. No idea [ ]

3.4 Do you consider the following additional information apart from credit rating for
investment decisions?

1. Reputation of the issuing company [ ]

2. Company’s past five years performance [ ]

3. Company’s investment policy [ ]

4. No consideration [ ]

3.5 Do you think that the number of Credit Rating Agencies established

in India is enough?

1. Yes [ ] 2. No [ ]
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3.6 Are you satisfied with the ratings given by the agencies?

1. Highly satisfied [ ] 2. Satisfied [ ]

3. Dissatisfied [ ] 4. Highly Dissatisfied [ ]

3.7 Risk Preference

1. Risk free investment [ ] 2. Moderate risk investment [ ]

3. Low risk investment [ ] 4. High risk investment [ ]

3.8 Reason for considering the rating given by the Credit Rating Agencies.

1. Credibility of the issuers [ ]

2. Prompt payment of Interest and principal [ ]
3. Reputation of the issuer [ ]
4. Update information about the issuer [ ]

3.9 The advantage of getting credit rating to the issuers

1. Getting adequate quantum of bank loan [ ]

2. Concession in interest rate [ ]

3. Relaxation in providing collaterals [ ]

4. Reduction in transaction cost [ ]

5. Faster decision on the part of the investor [ ]

3.10 Preference of Credit Rating Agency

1. CRISIL [ ]
2. ICRA [ ]
3. CARE [ ]
4. FITCH [ ]
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3.11 The purpose of credit rating

1. To measure credit risk [ ]

2. Assisting investments [ ]
3. Improving quality of instruments [ ]
4. Getting advice on enterprise development and identification of risk [ ]
5. Assurance about safety [ ]

3.12 Choice of investment

1. Bank term deposits [ ]

2. Bonds [ ]
3. Fixed deposits [ ]
4. Debentures [ ]
5. Government security [ ]
6. Commercial papers [ ]

3.13 What are the sources of your knowledge about credit rating agency?

1. News paper [ ]
2. Market source [ ]
3. Prospectus [ ]
4. Magazines [ ]
5. Credit rating agency guides [ ]
6. TA advertisements [ ]
7. Friends and fellow companions [ ]

3.14 Do you think that the ratings given by the agencies help the investors?

1. Yes [ ] 2. No [ ]

3.15 Are you comfortable with the ratings?

1. Yes [ ] 2. No [ ]
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IV. Credit Rating Attributes and Satisfaction level

Rating attributes Very Highly Somewhat dissatisfied Strongly

Highly satisfied satisfied dissatisfied
satisfied
Quality of
analysis
Rating accuracy
Timeliness of
rating
Rating upgrading
Transparency of
methodology
Surveillance
Usefulness of
research
Coverage of new
issues
Experience of the
rating agency
Proper fore
casting of
financial data
Practical utility
Update
information on
credit market
V. Credit Rating and its Down Grade

5.1 Acceptable level of down grade in rating

1. Below 10 per cent

2. 10-20 per cent
3. 20-30 per cent
4. 30-40 per cent
5. 40-50 per cent
6. Above 50 per cent
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5.2 Reasons for credit rating down grade

1. Economic sluggishness
2. Poor industrial scenario
3. Corporate Mismanagement
4. Rating agency inefficiency

VI. Perception on Credit Rating

Note
SA – Strongly Agree, A – Agree, UD – Undecided, DA – Disagree and SDA – Strongly
Disagree.
6.1.
Purpose of referring credit rating are SA A UD DA SDA
It assures timely payment of interest and
Principal
It assures safety of investment
It shows financial position of the
Company
6.2.
Expectations about the Credit Rating SA A UD DA SDA
Agencies
Accurate rating
Social responsibility
Implementation of SEBI’s
Requirements
6.3.
Reporting about the Credit Rating SA A UD DA SDA
Agencies
Responsible
Careless
Corruptive
Informative
Transparent
Timely
6.4.
Credit Rating Agencies can be SA A UD DA SDA
regulated through
Review Board
In-built responsibility
Investor – Agency Association
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6.5.
Credit Rating and drawbacks SA A UD DA SDA
Guidance, not recommendation
Based on assumptions
Issuer may choose the Rating Agency
which gives favourable rating
6.6.
Rating is reviewed with reference to SA A UD DA SDA
New political environment
Economic trends
Financial development
Industry trend
6.6a.
Rating and its change effects SA A UD DA SDA
Upgrading leads to investment
Downgrading leads to disinvestment
Reconfirmation leads to stable investment
6.7.
Give opinion about the following SA A UD DA SDA
Rating should be done by two agencies
Rated instrument in higher grade gives
low rate of interest
Rating must be made compulsory for all
instruments
It is the duty of the Rating Agencies to
educate investors about credit rating
Uniform symbols by all Credit Rating
Agencies

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APPENDIX – B

LIST OF PUBLICATIONS

S.No Title Journal ISSN/ISBN No Year

1 A Study on Perception of Commerce Times ISSN:2320-9461 January

Investors on Credit Rating 2014
Attributes International Research
Journal of Commerce

2 Credit Rating Issues and IJRBI ISSN:2321-5615 December

Perspectives with 2013
respect to Investors in
Tamilnadu