ICRA CORPORATE GOVERNANCE

RATINGS
CORPORATE GOVERNANCE

A system of structuring, operating and controlling a

company with a view to achieve long term strategic goals
to satisfy shareholders, creditors, employees, customers
and suppliers, and complying with the legal and
regulatory requirements, apart from meeting
environmental and local community needs.
ICRA
(formerly Investment Information and Credit Rating Agency of India Limited)

 Established in 1991 as
an independent and
professional
Software
Investment Development
Information and Credit Services
Rating Agency. Consulting Services

Grading Services
 Today, ICRA is a Rating Services

Public Limited
Company, with its
shares listed BSE &
NSE.
 ICRA Corporate Governance Ratings

 Key Variables:

 Ownership Structure
 Governance Structure &
Management Processes
 Board Structure and Processes
 Stakeholder Relationship
 Transparency and Disclosures
 Financial Discipline
 Ethical Practices
 Governance Structure
Board Structure and
Ownership Structure and Management
Processes
Processes
• Extent to which • Extent to which • Structural Aspects
dominant shareholders clearly-defined • Effectiveness of the
are easily identifiable Governance Board
• Extent of cross- arrangements are • •Functioning of Board
holdings present and followed Committees
• Extent of shareholding • Appropriateness of the
by promoter group decision-making
• Extent of institutional process
shareholding • Quality of information
• Pattern of retail submitted to the Board
shareholding
 Stakeholder Transparency and
Financial Discipline
Relationship Disclosures
• Conduct of • Changes in accounting • Return on capital
AGMs/EGMs policies employed
• Procedures for transfer • Notes to accounts of a • History of equity
and registration of materially significant dilution
shares and payment of nature • Extent of reliance on
dividend • Quality and level of debt funding
• Company’s detail in accounts • Dividend policy
responsiveness to • Disclosures on • Number of
investor complaints transactions with subsidiaries/associates
• Timeliness of release subsidiaries, associates and rationale for the
of any market sensitive and other related same
information parties • Nature of transactions
• History of penalties • Quality of disclosures with subsidiaries
levied in Management
Discussion and
Analysis
Limitations of ICRA Ratings

 ICRA ratings are only an opinion on the relative ranking of

credit risk.
 ICRA ratings convey only the relative credit risk
 ICRA ratings are not always constant and are subject to change
 For assigning ratings, ICRA relies on all relevant information
CGR & SVG RATINGS
 THANK YOU

SUBMITTED BY : VARSHA SINGH

09BS0002645