CIBIL Report made Compulsory by Punjab Govt for Custom Milling of Paddy Policy KMS 2018-19: As per Press Release dated August 30, 2018, The Punjab Cabinet led by Captain Amarinder Singh has given the nod to the Punjab Custom Milling of Paddy Policy (Kharif 2018-19). The salient features of the Custom Milling of Paddy Policy Kharif Marketing Season 2018-19 are as under:
- The scheme for Custom Milling of Kharif 2018-19 paddy would be followed by all the procuring
agencies i.e. PUNGRAIN, MARKFED, PUNSUP, Punjab State Warehousing Corporation (PSWC),
Punjab Agro Foodgrains Corporation (PAFC), including Food Corporation of India and the Rice
Millers/their legal heirs with the Department of Food, Civil Supplies, and Consumer Affairs Punjab
acting as the Nodal Department to ensure seamless procurement of paddy from farmers and delivery of rice into the Central Pool from more than 3710 mills operating in the state of Punjab.
- Allotment of free paddy to mills during KMS 2018-19 would be the miller’s performance in the previous year i.e. KMS 2017-18.
- Rice Mills which had completed their milling by 31st January 2018 would be eligible for additional 15% of free Paddy.
- Those who had completed delivery of rice by 28th February 2018 would get an additional 10% of free Paddy.
- For the first time, mills with Dryers and Sortexes, already installed in the premises would be eligible for 5% additional allocation of paddy on account of each separately.
- The newly established rice mills shall be allocated 2500 MTs of paddy for 1 tonne capacity with a subsequent allocation of additional 500 MTs of paddy for every additional tonne of capacity, subject to maximum allocation of 4000 MTs
To check allotment of Government Paddy to Non-Eligible parties with dubious records in the past, the Punjab Government for the first time has made mandatory submission of the following documents:
- Certified Credit Report from their Bankers.
- CIBIL Report on the Proprietors, Partners, Directors with Individual CIBIL Score of not less than 600.
- CIBIL Report on the Firm, Company, Gram Udyog Samiti, LLP with CIBIL Micro, Medium and Small Enterprises Rank (CMR) of 6 or lower.
- In addition, the miller would have to submit a bank guarantee equal to the value of 5% of Acquisition Cost of total paddy to be stored in mill premises.
While it is a welcome step to make mandatory submission of CIBIL Report on Individual Partners, Proprietors, Directors, the KMS 2018-19 Policy announcement has been announced very late and all the Rice Millers has been caught unaware. Mr. Ashok Goyal, the Founder Owner and CEO of this Website and leading CIBIL Consultant in India were contacted by many owners of Rice Millers in Rajpura.
Mr.Goyal analyzed the problems of the local Rice Millers and opined as under:
- Individual CIBIL Report is not a Big issue and every Sole Proprietor, Partner, Director can get the same either from their Bankers or purchase the same Directly from CIBIL. Most of the Banks, Private and Public Sector Banks do not provide a copy of the CIBIL Report to their clients and in such case, the Rice Millers can Get their CIBIL Report analyzed from all the four Credit Bureaus in India viz. CIBIL, Equifax, Experian, and CRIF High Mark.
- CIBIL Score of 600 prescribed by Punjab Government in its Press Release cannot be considered as a Healthy CIBIL Score and No Bank in India will take a Financial Risk with Individuals having CIBIL Score Range from 600 to 700. It appears that Lower CIBIL Score has been prescribed to accommodate the Rice Millers with dubious Financial Track Record also.
- The Punjab Government has not prescribed any Credit Rating for Individuals with no Credit History or Firms who never availed any TL or Working Capital Limits of more than 10 lacs in aggregate as NO CMR Rank or Individual CIBIL Score as it will be a NO HIT Case.
- Online Systems of CIBIL (Credit Bureau of India Limited Mumbai) is not working properly and CIBIL takes generally more than 30 days time to provide Hard Copies of Company Credit Report (CCR) with CMR Rank in case the report is of less than 100 Pages and CD of the CCR in case the report is of more than 100 pages. Rice Millers are left with a very short period to get the copies of CCR from CIBIL. It would have been better, had the Punjab Government made a Tie-Up Arrangement with the Lead Bank in Punjab to provide the Copy of CCR in respect of all the Rice Millers who apply for Milling the Paddy Procured by Procuring Agencies.
- CIBIL Credit Reports fetched by Banks and Lending Institutions have many Limitations in CIBIL Reporting.
- It has been found that CIBIL Reports, Individual or CCR fetched by Banks are bundled with Wrong Personal Information and Accounts Data resulting in Poor CIBIL Scores or CMR Rank and the Turn around Time taken by the CIBIL authorities to rectify the Reports is more than 90 days and that too if the reporting Credit Institution is supportive.
- It would have been prudent for the Punjab Government to accept the Sanction Letters of the Commercial Banks sanctioning Fund Based working capital limits of 10 lacs or more as a substitute for CCR for at least KMS 2018-19.
- Moreover, the condition of a bank guarantee equal to the value of 5% of Acquisition Cost of total paddy in itself should be treated as Good CIBIL Record as No Bank will like to Risk its own Funds.
- Had this Policy been announced in June or July 2018 then Rice Millers in Punjab would have got sufficient time to obtain the CCR for CMR Purpose.
- It would be better to do away with the Condition of CMR for the KMS 2018-19 and Rather Increase the Minimum CIBIL Score from a Risky Low Level of 600 to 720.
Services Provided by CIBIL Consultants:
- Fetching of Individual CIBIL Credit Reports not only from CIBIL but also from Experian, Equifax and CRIF High Mark – the four Credit Bureaus authorized in India to provide Credit Reports to know your Individual CIBIL Score. Time Frame 2-5 days in case your CIBIL account is not locked.
- Fetching of Company Commercial Report (CCR) for Sole Prop Firms, Partnership Firms, Companies with total loan liabilities of more than 10 Lacs to know their CIBIL Micro, Medium and Small Enterprises Rank (CMR). Time Frame 10-30 Days.
- Improvement in Individual CIBIL Scores through Removal of “Strangers’ Accounts” from CIBIL Report and Updation of CIBIL Status in respect of “Written Off“, “Settled” or “Zero Balance” loan accounts or Credit Cards appearing in the CIBIL Report. Time Frame 10 to 75 days time depending upon the number of accounts.
- Professional Fees and Transparent Refund Policies are available at Tell us Your CIBIL Problem.
- We have more than 10000 satisfied clients and you can read these Google Reviews for your satisfaction or also read Customers Testimonials at Our Online Portal to Solve all your CIBIL Problems online through Whats App Contact at +919814915812 or +918849950799.
Note for the Knowledge of Rice Millers: CIBIL Score is considered Good if it Goes Up and CMR in case of Firms/Companies is considered better if Goes Down. Individual CIBIL Score of more than 750 is generally considered as Good and these Scores are out of 900. Nobody can have perfect 900 and those who have never taken any loan or Credit Card are allotted CIBIL Score of -1 (Minus 1). CMR Rank of 1 is best and CMR Rank of 10 is the Worst.
CIBIL Consultants have slashed their Brief Opinion Rates by 80% only for Rice Millers in Punjab from Rs.12500 to Rs.2500. It is a limited period offer up to 30th September 2018 for first 100 Reports on First Come First Serve Basis and w.e.f. 01-10-2018 the Opinion Reports will be available for Rs.12500 only as our normal Professional Fees. Pay Rs.2500-00 by clicking the button now and our Team will contact you soon.
Contact: Ashok Goyal, Retd Chief Manager PNB (What’s App No.9814915812)