Professional Documents
Culture Documents
On
At
By
Batch ( 2021-2023 )
Submitted to
Gramoday Trust’s RIIM –The Academy School of Business Management.Sr.No.31, Near Dange chowk
Tathawade Road, Tathawade Ta: Mulshi, Dist: - Pune. Pincode: 411033
ACKNOWLEDGEMENT
It is really matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly or indirectly for the successful completion of “A project report on
background verification “
First of all , im extremely thankful to my college for me providing me with his apportunity
and all for its cooperation and contribution. I also express my gratitude to my summer
internship project to mentor Prof. Reshma Tamboli for her guidence and suggestions for my
entire study.
I am hightly thankful to our respected college project guide Prof. Reshma Tamboli for
extending their valuable time , guidence , cooperation and giving me freedom to conduct my
study.
I the undersigned solemnly declared that the project report is based on my own work carried
out during the course of my study. I assert the statements made and conclusions drawn are an
outcome of my human resource work.
I further declare that the work contained in the report is original and has been done by me.
The work has not been submitted to any other institution or any other university. I have
followed the guidelines provided by the university in writing the report.
Wherever I have used materials (data, theoretical analysis and text) from the sources I have
given the due credit to them and in the text of the report and giving their details in the
references.
Abhishek Sharma
Institute Certificate
Organization Certificate
TABLE OF CONTENTS
Sr.
Numbers Contents Page Numbers
1 Executive summary 1
2 Introduction 2
3 Reasearch methodology 3
8 Recommendations 12
9 Oraganization Profile 13 - 33
10 Learnings 34
11 Conclusion 35
12 Annexure 36 - 37
13 References 38
EXECUTIVE SUMMARY
As an intern who worked as part of the background verification team at Crisil, I gained
valuable experience in the HR field and gained a deep understanding of the background
verification process. In this role, I was responsible for conducting thorough and accurate
background checks on job applicants to ensure they met the company's standards.
Overall, my experience as part of the background verification team at Crisil has provided me
with a comprehensive understanding of the HR field, and I am confident that my skills and
experience will be valuable assets in any future HR roles.
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Chapter 1
Introduction
Itis the employer’s responsibility to take reasonable steps to ensure the safety of their existing
employees, customers, and associates. If an employee indulges in violent or criminal
behavior, the employer could be charged with negligent hiring and held liable for the
damages caused to a victim.
The law pertaining to negligent hiring was first introduced in 1908 in a case where a prank by
an apprentice resulted in the accidental killing of a co-worker. In that case, the court held the
employer liable for the death as it found that the employer had continued to keep the
wrongdoer in employment even after witnessing his reckless action.
The negligent hiring law was expanded between 1911 and 1933 to include actions that took
place outside of employment (such as hiring an individual with a known violent disposition)
and violent acts against customers by employees. In 1951, a case was filed against a delivery
person who made an “indecent attack” on a woman. The court held that the employer had the
responsibility to exercise reasonable care while selecting workers to choose only those who
were fit and competent for the job assigned, particularly because these workers directly
engaged with the public.
Many more employers over the next two decades were held liable by the US courts on the
charge of negligent hiring. As a result, by the late 1970s, employers across different
industries began focusing on providing a safer work environment and started scrutinizing
resumes and job applications for false informing.
During the 1990s, a growing number of employers began to recognize the need to involve
professional background screening service providers in the hiring process. These
professionals developed the tools, resources, and techniques to obtain critical background
information about job applicants that could provide insights into their personality and skills.
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Research Methodology
The study is conducted in a systematic procedure starting from selection of the topic to final
report preparation the integral part was to identify and collect data and analyzed interpreting
and presented in a systematic manner to find the vital points the whole process of the
methodology followed in the study is explained further.
Sources of data:
Primary sources:
Secondary sources:
Annual report
Newspapers
Internet
Collection of data:
primary data is collected from observation method face to face communication with the
officials secondary data was collected from CRISIL website and other related websites and
documents.
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Chapter 2
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3. Education verification: The verification of the education background guarantees the
validity of the certificate, the name of the applicant concerned and the grades awarded
by the applicant and where the education came from. After checking all of the above
details, the document will be marked as genuine
4. Reference checks can be used to get an idea of what a potential employee would
work like in the office. It also allows hiring managers to ask questions about past
performance and verify everything the candidate has told them during the interview or
about the application itself from the mentioned references.
5. Drug Screening: Some industries, such as driving or aviation, require periodic drug
and alcohol testing. These types of tests are used to determine if alcohol or illicit
drugs are present in a person's system. These types of tests ensure that your current or
future employees have a healthy and clean mindset and can trust your business.
6. Social Media Check: Some employers consider looking at public social media
accounts and posts by potential employees to learn more about them. However, there
are many drawbacks you should be aware of before relying on the information
collected through internet social media searches such as Facebook, Twitter and
LinkedIn. It is possible to obtain useful but unverified information about job seekers,
but it should still be used to ensure that the information is correct.
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Background Verification Process At CRISIL
Crisil, like most companies, would typically perform background verification on job
applicants as part of their hiring process. This can include verification of educational
qualifications, previous employment history, criminal records, and personal references. The
specific methods used by Crisil for background verification might vary, but it is common for
companies to use third-party background verification companies or in-house HR teams to
conduct these checks. The extent and type of verification performed might also depend on the
position applied for and the company's internal policies.
After the candidate accepts offer letter from CRISIL. Then the background verification and
documentation process starts.
Step 1 - I’ll have to contact the candidate and explain him the documentation process over a
zoom call.
Step 2 – The candidate is now given a 4 days time to submit all documents. These documents
include their identification proof, address proof, educational information and past
employment records, there are some ten company policy documents too which the candidate
have to sign and submit.
Step 3 – After 4 days time all the candidates who didn’t submit their documents are escalated
to their respected managers and recruiters.
Step 4 – After the confirmation from the recruiters and managers all the backed out cases are
removed from system and final report gets created. With this the background verification
documentation process ends.
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Chapter 3
Collaborating with the HR team and other departments to ensure that the verification
process is completed in a timely and accurate manner.
Assisting the HR team with any other tasks and projects as required.
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Nature & Objective of the Project:
Nature:
The report is prepared on the basis of 6-month practical experience at CRISIL Ltd. This
internship program help me to lean about practical scenario of CRISIL. This report explains
me about my experience about backgound verification of employees of Crisil Ltd.
During internship i worked in HR Shared Services department, where my job was to explain
the onboarding form to new joiners and get them to submit all the documents properly. So
that their onboarding runs smooth.
Basically nature of this project is to understand how I have contributed to the organisation as
a HR assistant and skills that are developed during my 6- month of virtual internship at
CRISIL Ltd.
Objectives:
To gain hands-on experience in the background verification process and learn about
its importance in the HR industry.
To build a professional network and gain insights into the HR industry and career
opportunities within it.
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Chapter 4
Scope and limitations:
Scope:
Before offering you the job, companies look for following details during a background
verification process:
Your public records – Companies can easily access your court records and
criminal history from any law enforcement agency.
Your work history – Companies will dig up your past employers, dates you
worked with them, your role in each company, your pay, performance history,
your conduct in the company and so on. And don’t forget the drug test
results!
Education records – Companies will reach out to your university to match
your credentials. This is a sure thing because forging degrees, fake certificates
and bogus grades are actually the most common types of corporate frauds.
Address verification – Who lies about their address, right? The ones who are
trying to hide their past, that’s who.
Limitations:
In general, the benefits of conducting a background check far outweigh the downsides.
One point to pay attention to in particular is the issue of privacy. As mentioned, genetic and
medical information is legally barred from background checks. Also, while it may not be
illegal to ask certain open-ended questions to employees, it may be detrimental to the
relationship.
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Asking employees questions that are deemed too personal or irrelevant to the job, for
instance, can deter employees from accepting a job, decrease employee retention, increase
workplace friction, and so forth.
Contact references
Inform them of what information will be collected and what their rights are, as
noted in the section above
Pay special care when asking foreign applicants to fill out background check
forms, since background checks may be unusual in their home countries
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Recommendations for Improving the Background Verification Process at
Crisil:
Regular training and upskilling of the HR team: Regular training and upskilling of the
HR team in the latest verification technologies and best practices will help ensure that
they are equipped to handle new challenges and improvements in the verification
process.
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Chapter 5
Organization profile
CRISIL Ltd is a global analytical company providing ratings, research, and risk and policy
advisory services. The company is India's leading ratings agency. They are also the foremost
provider of high-end research to the world's largest banks and leading corporations. CRISIL
is majority owned by S&P Global Inc., a leading provider of transparent and independent
ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
CRISIL operates through two segments: Ratings and Research. Rating services include credit
ratings for corporates, banks, small and medium enterprises (SME), training in the credit
rating field, credit analysis services, grading services and global analytical services. Research
segment provides equity research, industry reports, customized research assignments,
subscription to data services and initial public offer grading. It operates from seven research
centers worldwide.
CRISIL was incorporated in the year 1987 with the name Credit Rating Information Services
of India Ltd. The company was promoted by leading financial institutions, nationalised
banks, foreign banks and private sector banks. During the year 1995-96, they formed a
strategic alliance with Standard & Poor's rating group, New York. They also made a tie up
with International Information Vendors for dissemination of CRISIL Ratings. The company
launched CRISIL 500 equity index during the year.
Founder
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Mission
Vision
To make markets function better by providing independent opinions, actionable insights and
efficient solutions.
Values
Integrity
We are independent in our thinking and act with unimpeachable integrity at all times. Our
opinions and analyses are credible, unbiased and not bound by any company, government or
market.
Excellence
We continuously innovate to deliver actionable analyses and solutions that help customers
make informed business decisions and mitigate risk. We are committed to the highest quality
standards, while robust analytical rigour ensures that our insights are objective, distinct,
consistent and reliable.
Accountability
We are committed to what we do, we stand by our opinions and analyses, and we assume
complete responsibility and ownership of our decisions and actions.
Teamwork
We collaborate with, and incorporate the expertise and insights of each team member to
enhance the value of our deliverables to customers, investors and other market participants.
Respect
We treat everyone with mutual trust and respect, be they colleagues, customers or other
stakeholders. We embrace and cherish the inclusivity and diversity of our organisation.
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Services of company:
The following points highlight the various forms of credit rating services in India. The forms
are: 1. Credit Rating and Information Services of India Limited (CRISIL Limited) 2. Credit
Analysis & Research in Equity (CARE) (CARE Ltd.) 3. The Investment Information and
Credit Rating Agency of India (ICRA) – (ICRA Ltd.) 4. Fitch Ratings India Pvt Ltd. 5.
ONICRA (ONIDA Individual Credit Rating Agency).
CRISIL was promoted in 1987 jointly by ICICI and UTI as a public Ltd. company to rate
debt instruments. The other promoters are ADD, LIC, GIC, SBI, Housing Finance
Development Corporation, several public, private and foreign banks. It commenced rating
operations on January 1, 1988. This was the first rating agency in India.
The objective of CRISIL has been to rate debt instruments of Indian companies on voluntary
basis. It aimed to provide the investors a guide as to the risk of timely payment of interest and
principal.
CRISIL pioneered the concept of credit rating in the country and introduced new concepts in
rating services and has diversified into related areas of information and advisory services.
CRISIL started its commercial paper rating program in 1989, Asset backed securities in 1993.
They also started rating public sector and private sector banks. It launches CRISIL Rating
Scan in 1989 to announce new and current ratings and disseminate the CRISIL rating
rationale.
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It offered its share capital to the public in 1993. In 1996 it entered into a strategic alliance
with Standard & Poor’s (S & P) Rating Group New York to extend its credit rating services
to borrowers from the overseas market. In 1997, S & P acquired equity stake in the CRISIL.
In 2004, S & P made an open offer to the shareholders of CRISIL and acquired 56.5% rating
stake and became the major shareholder. The name of the company changed from “The
Credit Rating Information Service of India Ltd. to “CRISIL Limited” in 2004.
CRISIL Operations:
(iv) Consultancy
CRISIL Ratings is the only ratings agency in India to operate on the basis of sectoral
specialization. CRISIL leadership position continues with over a 70% market share of the
Indian rating market. CRISIL ratings, plays a major role in the development of the debt
market in India.
CRISIL offers:
(ii) Developed a methodology and frame work for rating of structured obligations (SO) and
Asset Securitization Programmes.
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(iii) Introduced ratings on real estate developer’s projects, credit quality assessment of state
electricity boards and state governments.
(v) Develops and launches Municipal bank ratings, financial strength rating for insurances
companies, rating of foreign structured obligations, grading of health care institutions etc.
(vi) Rating and grading for stock brokers corporate governance etc.
CRISIL, established on January 29, 1987 with nearly 30 years of experience in rating services
has developed into a brand name that is synonymous with credit ratings CRISIL pioneered
ratings of virtually every class of rated entity in the Indian market.
CRISIL is the:
(iv) First to rate almost all innovative structures in structured finance transactions.
CRISIL has helped to set up credit rating agencies in Malaysia, Israel and the Caribbean. Its
global clients include the World Bank, ADB, foreign investment banks etc.
CRISIL Research is India’s largest independent integrated research house providing accurate
and reliable research, analysis and forecasts on the Indian economy, industries and companies
to over 500 Indian and International clients across financial, corporate, consulting and public
sectors. They also offer high quality financial data analysis to users within and outside the
CRISIL group. CRISIL sector wise analysis, CRISIL Company view, CRISIL Eco view,
CRISIL Index services, CRISIL Fund services are the different products of CRISIL Research
and Information Services.
CRISIL offers Advisory Services in the field of policy, regulatory, investment and risk
management. CRISIL infra-structure advisory and CRISIL investment a Risk management
services are the two wings of CRISIL that offers advisory services to clients.
CRISIL through its advisory services helps in governments and companies in formulation of
policies, sector reforms, management assistance etc. It also provides integrated risk
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management solutions to their clients. In 2007, CRISIL has transferred its advisory business
(CRISIL infrastructure Advisory and CRISIL investment and Risk Management Services)
into a 100% subsidiary CRISIL Risk and Infrastructure Solutions Ltd.
CRISIL Ratings:
The CRISIL rating symbols indicate in a summarized manner CRISIL’s current opinion as to
the relative safety of timely payment of interest and principal on a debenture, structured
obligation, preference share, fixed deposit programme or short-term instrument.
A CRISIL rating relates to the particular debt instrument and is not a rating for the company
as a whole inasmuch as it takes into account the specific terms of the instruments. The rating
is not a recommendation to invest or not to invest.
Methodology:
CRISIL assigns ratings after an assessment of all factors that could affect the
creditworthiness of the borrowing company.
1. Business Analysis:
Industry Risk nature and basis of competition; key success factors; demand supply position:
structure of industry; cyclical/seasonal factors; Government policies; etc.
Market position of the company within the industry- market share; competitive advantages;
selling and distribution arrangements; and customer diversity; etc.
Legal position terms of prospectus, trustees and their responsibilities; systems for timely
payment and for protection against forgery/fraud; etc.
2. Financial Analysis:
Accounting Quality:
Overstatement / understatement of profits; auditors qualifications; method of income
recognition; inventory valuation and depreciation policies; off balance sheet liabilities etc.
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Earnings Protection:
Sources of future earnings growth; profitability ratios; earnings in relation to fixed income
charges; etc.
In relation to debt and fixed and working capital needs; sustainability of cash flows; capital
spending flexibility; working capital management etc. Financial Flexibility- alternative
financing plans in times of stress; ability to raise funds; asset redeployment potential etc.
3. Management Evaluation:
Track record of the management; planning and control systems; depth of managerial talent;
succession plans, evaluation of capacity to overcome adverse situations, Goals, philosophy
and strategies etc. are considered for companies with manufacturing activities. The
assessment of finance companies will lay emphasis on the structure and regulatory
framework of the financial system.
4. Fundamental Analysis:
Capital Adequacy:
Assessment of true net worth of the company, its adequacy in relation to the volume of
business and the risk profile of the assets.
Asset Quality:
Quality of the company’s credit-risk management; systems for monitoring credit; sector risk;
exposure to individual borrowers; management of problem credits etc.
Liquidity Management:
Capital structure terms matching of assets and liabilities; policy on liquid assets in relation to
financing commitments and maturing deposits.
Rating Process:
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CRISIL evaluation is carried out by professionally qualified persons and includes data
collection analysis and meetings with key personnel in the company to discuss strategies,
plans and other issues that may affect CRISIL’s credit evaluation of the company. Typically,
companies present information to CRISIL on the topics indicated earlier at the time of
requesting for a rating.
The rating process begins at the request of a company. On receipt of the request, CRISIL
assigns a team that will be responsible for carrying out the rating assignment.
The team obtains and analyzes information, meets the company’s executive and interacts
with a back-up team which would have also collected industry information. Their findings are
presented to an International Committee consisting of Senior Executives of CRISIL and
thereafter, presented to the Rating Committee (which comprises some Directors not
connected with any CRISIL shareholder) which then decides on the rating. The rating is,
thereafter, communicated to the company. Should the company want to present some
additional information, it can do so at this stage.
The rating process ensures objective analysis and strict confidentiality of client information.
The Board of Directors of CRISIL does not get involved in the rating process.
CRISIL offers companies the opportunity to be evaluated on a confidential basis. Once the
company decides to use the rating, CRISIL is obligated to monitor the rating over the life of
the debt instrument. In assigning a rating, CRISIL takes into account the effects of a normal
business cycle, however, depending upon the new information or development concerning
the company.
To Investors:
CRISIL ratings serve as an objective guide to the risk involved in a particular instrument.
They can make risk evaluations on the basis of CRISIL’s independent and thorough analysis
and not on the basis of the name of the company or its directors. Debt instruments not
assigned an investment grade rating may be appropriate for an investor’s particular
preferences; other investors may prefer only investment grade ratings. Further, investors get
the benefit of CRISIL’s ongoing surveillance of the rating.
To Borrowing Company:
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CRISIL ratings can enhance the marketability of the instrument. A high rating can help a
company to raise money at a relatively lower cost and from a larger body of individuals, thus
leading to a broader investor base. In case of debentures, ratings facilitate investors in
measuring credit risk quickly and accurately.
CRISIL ratings can lead to greater liquidity in the secondary market, thereby ensuring for the
company easier access to funds in the future. Highly creditworthy companies may be
virtually unknown in the market; CRISIL rating can facilitate fund raising for such
companies.
Instruments which have the same rating are of similar but not identical investment quality.
This is because the number of rating categories is limited and hence cannot reflect small
differences in the degree of risks.
For preference shares, the letters “pf’ are prefixed and for structured obligations letters (SO)
are affixed to the debenture rating symbols. The fixed deposit rating symbols commence with
“F” and the short-term instrument use the letter “P” from the concept of ‘prime’. The term
‘debentures’, includes all securities with an original maturity of more than one year. The term
‘short-term instruments’, refers to securities with an original maturity up to one year.
For Example, Bajaj Auto Limited has a CRISIL AAA for its long term instruments.
A Adequate safety
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B High Risk
C Substantial risk
FA Adequate safety
FB Inadequate safety
FD Default
NM Not Meaningful
P-2 Strong
P-3 Adequate
P-4 Minimal
P-5 Default
NM Not Meaningful
CRISIL may apply ‘+’ (plus) or ‘- ‘(minus) signs for ratings from AA to C to reflect
comparative standing within the category.
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2. Credit Analysis & Research in Equity (CARE) (CARE Ltd.):
CARE promoted by IDBI and several other banks and insurance companies and investment
institutions in 1993. The three largest shareholders of CARE are IDBI bank, Canara Bank and
State Bank of India. CARE, is set up with two divisions- CARE Ratings and CARE
Research. Its headquarters is located at Mumbai having seven regional offices.
(iv) Other Services like Rating of parallel markets of LPG and kerosene, CARE Loan Rating,
Credit Analysis Rating etc.
Credit rating includes all types of debt instruments, both short-term and long-term.
Information services include information on any company, local body, industry or sector
required by business enterprise. CARE also prepares ‘Credit reports’ on companies for the
benefit of banks and other business counter parties.
Equity Research of CARE comprises of an extensive study of the shares listed in the major
stock exchanges and identification of potential winners and losers among them on the basis of
the fundamentals affecting the industry, economy market share, management capabilities,
international competitiveness and other relevant factors. Rating services serves as a useful
tool for different constituents of the capital market.
c. Financial Intermediaries,
e. Regulators.
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In addition to debt ratings CARE ratings provides the following specialized
grading/rating services:
CARE is recognized by SEBI, Government of India and RBI etc. It has also been recognized
as an Eligible Credit Rating Agency (ECRA) for Basel II implementation in India.
CARE ratings has completed over 3850 rating assignments having aggregate value of about
Rs. 8071 billion (as on December 2007) since its inception in April 1993.
Rating Methodology:
The analytical frame work for CARE’s rating methodology is divided into two
interdependent segments. The first deals with operational characteristics and the second with
financial characteristics. Besides quantitative and objective 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 analysis
varies with the type of issuer.
1. Business Risk:
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2. Financial Risk:
This include financial management, capital structure, liquidity position, financial flexibility
and cash flow adequacy, profitability, leverage, interest coverage, projections with particular
emphasis on the components of cash flow and the claims there on, accounting policies and
practices, with particular reference to practices of providing for depreciation, income
recognition, inventory valuation, off-balance sheet claims and liabilities, amortization of
intangible assets, foreign currency transactions etc.
3. Management Assessment:
This area is centred on background and history of issue, corporate strategy and philosophy,
organizational structure, quality of management and management capabilities under stress,
personnel policies including succession planning.
4. Environmental Analysis:
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(B) Short term Instruments:
ICRA was registered on January 16, 1991 by the IFCI (Industrial Finance Corporation of
India) and a number of other financial institutions as a public limited company with its
headquarters at Delhi. Like CRISIL, the ICRA also rates only debt instruments, namely,
debentures/ bonds, fixed deposits and commercial papers. It is the second rating agency in
India.
i. Rating Services
Rating services include rating of debt instruments and credit assessment. Advisory services
are comprising of strategic counseling, general assessment such as restructuring exercise and
sector specific service such as for power, telecom, ports, municipal rating etc. Investment
Information services include reports on specific industries, sectors and corporates; Equity
related services like equity rating, equity assessment etc. In September 2001 Moody’s
Investors Service became the largest shareholder in ICRA.
Moody’s is a strategic partner in the company having 28.5% stake. Moody’s provides ICRA
with technical services and also outsources certain services to ICRA. ICRA has wholly
owned subsidiaries viz., ICRA Management Consultancy Services (IMaCs), ICRA Techno
Analytics (ICTEAS) and ICRA online that provide management consulting services, business
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solutions and computer aided engineering services and information services and outsourcing
services respectively.
The company has signed MoU with Indian Overseas Bank, State Bank of India and Indian
Bank for assigning ratings to the bank loans. It also has MoUs with Vijaya Bank, Corporation
Bank, UCO bank and Canara Bank for assigning ratings to Small Scale Industries (SSIs) and
Small and Medium Enterprises (SMEs).
Rating Analysis:
ICRA rating emanates from an evaluation of the background strengths and weaknesses of the
borrowing entity. ICRA ratings are based on inherent protective factors, marketing strategies,
competitive edge, level of technological development, operational efficiency, competence
and effectiveness of management.
The other factors like HRD policies and practices, hedging of risks, cash flow trends and
potential liquidity, financial flexibility, asset quality and past records of servicing debts and
obligations as well as the government policies and statutes affecting the industry and the unit
are looked into.
The rating symbols group together similar (but not necessarily identical) entities in terms of
their relative capacity of timely servicing of debts/obligations, as per terms of contract, i.e.,
the relative degree of safety/risk.
The suffix of + or – may be used with the rating symbol to indicate the comparative position
of the instrument within the group covered by the symbol. Thus, MAA + lies one notch
above MAA.
The rating symbols for different instruments of the same Company need not necessarily be
the same.
1. Rating Request:
This is initiated by the issuer requesting to make rating of a specific issue of the company. On
such a request, the rating agency makes out a detailed agreement inscribing terms and
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conditions of such assignment. This includes rating of an issue and subsequent surveillance.
This is called mandate.
2. Rating Team:
Rating team usually comprises of two members based on the expertise and skills required for
evaluating the business of the issuer.
3. Information Requirements:
Information is provided by issuers who are containing a detailed list of information and broad
framework for discussions. Issuer is to supply all requirements, data-and information.
4. Secondary Information:
This is drawn by the credit rating agency from its own research division. The agency has a
panel of industry experts who provide guidance on specific issuer to the rating team. The
secondary sources usually provide data and trends including policies about the industry.
These are necessary for assessment of number of qualitative factors with a view to estimating
future earnings of the issuer. A thorough discussion on various matters like- management of
plants and units, future outlook, competitive position and funding positions etc., Plant visits
facilitate understanding of the production process; assess the state of equipment, quality of
technical personnel, quality of goods, cost of production etc.
6. Preview Meetings:
This is convened after completing the analysis. Findings are discussed at length in the
internal committee. Internal committee is consisting of senior analysts. In this stage all issues
relating to rating are discussed and opinions are formed.
This is convened by rating agency. It is the final authority for assigning ratings. Based on
discussions, views of internal committee, data, etc., rating is assigned.
8. Rating Communication:
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This is made by the agency to the issuer in detail. If the rating is not acceptable by the issuer,
he has a right to appeal for a review of the rating. These reviews are taking place provided the
issuer puts some fresh inputs on the issue. Again rating process is reviewed considering fresh
inputs and additional information.
9. Surveillance:
Surveillance is a monitoring of credit rating agency over the tenure of the rate instrument.
Ratings are reviewed, generally, every year. In such review, initial rating may be upgraded or
downgraded or kept unchanged considering various factors by the rating agency.
The joint venture between Duffs and Phelps, an inter-national credit rating agency and J. M.
Financial and Alliance Group resulted in the formation of DCR India Pvt. Ltd. In 2000, July
Fitch Rating, a leading international credit rating agency has acquired 33% stake in Duff &
Phelps Credit Rating India Pvt. Ltd. (DCR India Pvt. Ltd). The merged entity has been
renamed as Fitch Ratings India Pvt. Ltd. Fitch Ratings India will continue to maintain its
existing rating and use the same rating definitions being used by DCR India.
Fitch India (Fitch Ratings India Pvt. Ltd) is now a 100% subsidiary of Fitch Group. Fitch has
four offices in India located at Mumbai, Delhi, Chennai and Kolkata. Fitch India is
recognized by RBI, SEBI and National Housing Bank.
The Rating methodology of Fitch includes the use of both qualitative and quantitative
analysis to assess the business and financial risks of fixed income issuers. The ratings
assigned by Fitch are comparable across industry groups and countries. Analysis typically
involves at least five years of operating history and financial data as well as company and
rating agency forecasts of future performance.
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The suffix ‘(Ind)’ refers to National Rating Assigned by Fitch India. National ratings are
designed for use mainly by local investors in local markets and are signified by the addition
of an indentifier for the country concerned, such as ‘Ind AAA’ for National ratings in India.
ONICRA is the first individual credit rating agency in India promoted by ONIDA group. It is
incorporated in 1993. ONICRA defines individual credit rating as- “an objective assessment
of the risk attached to a financial transaction with respect to an individual at a given point of
time”. They have a rating system for various types of credit extension. They make a detailed
study of all aspects of the behaviour of credit seekers. The credit worthiness of the individual
is measured on various parameters. ONICRA uses a 100 point scale to rate the individual on
various parameters. ONICRA takes up the rating of individuals at the request of lending
institutions. The rated individuals will be provided with a certificate which helps him in
obtaining a loan.
1. Age
2. Qualification
3. Occupation
4. Stability at work.
5. Savings
6. Extend of payment i.e., the amount of loan that an individual can avail of
7. History of repayment.
(d) SSI/SME
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(e) Customer verification
The clients ONICRA are from major business segments such as Telecom, Banking,
Automobile, Consumer finance, IT and other service industries.
CIBIL is a composite Credit Bureau, which caters to both commercial and consumer
segments. It covers credit availed by individuals while the Commercial Credit Bureau covers
credit availed by non-individuals such as partnership firms, proprietary concerns, private and
public limited companies, etc. Banks, Financial Institutions, State Financial Corporations,
Non-Banking Financial Companies, Housing Finance Companies and Credit Card Companies
are members of CIBIL.
Achievement
During the year 1996-97, the company introduced the ratings on mutual funds, bank loan
ratings and public finance ratings. During the next year, they developed and launched
municipal bond ratings and also launched financial strength rating for insurance companies.
The company with National Stock Exchange set up a joint venture company with the name
IISL for undertaking index business and related activities. They also launched Crisil MNC
Index and Crisil Indian Business Groups Index during the year.
During the year 1999-2000, the company acquired the business of Information Products and
Research Services (India) Pvt Ltd, alongwith their brand INFAC. During the next year, they
introduced mutual fund ranking service for the domestic mutual fund market. They also
launched Crisil-Naredco ratings initiative for the real estate sector.
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During the year 2001-02, the company launched Crisil MarketWire which is a real time
financial news service. During the year 2002-03, they set up Investment and Risk
Management Services which is an independent division and also offer evaluation services for
film and TV software producers.
During the year 2003-04, the company name was changed from Credit Rating Information
Services of India Ltd to Crisil Ltd. They acquired Gas strategies Group Ltd, a London based
company, engaged in as consulting, information and training/ conferences. Also, they made
an equity investment in the Caribbean Information & Credit Rating Services Ltd which is the
first regional rating agency in the world.
During the year 2004-05, Irevna group of companies was acquired by the company. The
company transferred the Advisory Business of the company to Crisil MarketWire Ltd with
effect from April 01, 2007. Crisil Research & Information Services Ltd, Global Data Services
of India Ltd and Irevna Research Services Ltd merged with the company with effect from
April 1, 2007.
In February 2008, the company reached a preliminary understanding with Equifax Inc, USA
and Tata Capital Ltd for setting up a Credit Information Company in India. They also
proposed to set up a subsidiary in Poland and Duabi through their wholly owned subsidiary,
Irevana Ltd, UK.
In the year 2008, CRISIL Infrastructure Advisory was reorganised with the seperation of
business development and delivery functions. They completed a large number of international
engagements. The company divested 90% of their equity in their UK subsidiary, Gas
Strategies Group Ltd (GSG), to the GSG management team. The company now has a 10%
shareholding in the company.
In the year 2009, the company launched a first-of-its-kind publication, India's Top 50
Microfinance Institutions, profiling the leading microfinance institutions in India. They
assigned India's first-ever rating for securitisation of microfinance receivables. They
introduced CreditAlerts to provide Insights to market participants on trends in specific
sectors. They extended operations at Global Analytical Centre to 24/6 to provide real-time
support o Standard& Poor's during Us market hour.
In the year 2010, the company launched Real Estate Star Ratings,a first-of-its-kind service for
retail investors in the real estate sector. They expanded operations at Global Analytical
Centre (GAC) to support Standard & Poor's (S&P). In September 22, 2010, the company
signed agreements for the acquisition of the assets of Pipal Research Corporation (PRC)
including 100% of the share capital of Pipal Research Analytics and Information Services
India Pvt Ltd. After completion of all conditions precedent, the transaction was completed
with effect from December 3, 2010.
In the year 2011, the company launched Education Grading, Solar Grading and, Gold and
Gilt Index. CRISIL Global Research & Analytics received NASSCOM Exemplary Talent
Practices Award.
In 2012, CRISIL achieved a landmark of assigning its 10,000th bank loan rating. In 2013,
McGraw Hill Financial Increased Stake in CRISIL to 67.8%. During the year, CRISIL
launched CRISIL Inclusix, India's most comprehensive financial inclusion index which
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accurately measures the extent of financial inclusion in the country, right down to each of the
632 districts.
In 2014, CRISIL assigned rating for India's first Commercial Mortgage Backed Securities.
During the year, CRISIL introduced Fund Management Capability Ratings for the mutual
fund industry.
In 2016, CRISIL launched the first hybrid issuance ratings in the insurance sector. During the
year, CRISIL launched first Infrastructure Rating on the Expected Loss' scale.
In 2017, CRISIL launched smefirst, an online platform that allows SMEs easy access to
ratings and other related services. During the year, CRISIL acquired 8.9% stake in rival credit
rating agency CARE Ratings. During the year, CRISIL launched India's first infrastructure
investability index. Small Industries Development Bank of India (SIDBI) and CRISIL signed
a MoU to launch India's first MSME Sentiment index named CriSidEx. During the year,
CRISIL launched rankings for unit linked insurance plans (ULIPs).Also during the year,
CRISIL entered into a definitive agreement to acquire 100% stake in Pragmatix Services
Private Limited, a data analytics company. Headquartered in Mumbai, Pragmatix provides
analytics and solutions to retail and commercial banks, financial institutions, asset managers,
insurers and telecom companies. Pragmatix provides solutions across the risk, sales, and
finance domains in India, Middle East and North America. Pragmatix's intellectual property
includes a proprietary enterprise data analytics platform with pre-configured data models,
KPIs and algorithms that offer accelerated business solutions.
On 21 May 2018, CRISIL announced that it has assigned India's first rating for road projects
based on the toll-operate-transfer (TOT) model. The rating, Provisional CRISIL AA-
(SO)/Stable1', was assigned to the bank facilities of nine special purpose vehicles (SPVs)
sponsored by Macquarie Asia Infrastructure Fund 2 (MAIF 2) under the TOT model
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Chapter 6
Learnings through the project
Teamwork: I was able to work closely with the HR team at Crisil and develop
my teamwork skills, as well as my ability to work effectively in a fast-paced
environment.
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Conclusion
I am grateful for the opportunity to work with the talented and dedicated HR team at Crisil
and to learn from their expertise. The skills and knowledge I gained during my internship will
be invaluable in my future HR career and will serve as a foundation for my continued growth
in the field.
Overall, I am grateful for the experience and would like to express my thanks to the Crisil HR
team for their support and guidance throughout my internship. I am confident that the skills
and experience I gained will benefit me greatly in my future HR career, and I look forward to
continuing to develop my skills and knowledge in this exciting and dynamic field.
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Chapter 7
Annexure:
1. 0-5 years
2. 5-10 years
3. 10-15 years
4. More than 15 years
1. Yes
2. No
Question 3: How well the organizations affirmative action needs clarified and
supported in the selection process?
1. Poor
2. Adequate
3. Excellent
1. Poor
2. Adequate
3. Excellent
Question 5: Do you face any difficulty while filling out the policy documents of
the organization?
1. Yes
2. No
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Question 6: Rate the explanation of the background verification process and the
form filling done by the organization’s employee?
1. Poor
2. Adequate
3. Excellent
1. Yes
2. No
Question 8: How difficult will you define the background verification document
process?
1. Easy
2. Difficult
3. Hard
Question 9: How long did it take you to fill the policy documents of the
organization?
1. One day
2. Two days
3. More than three days
Question 10: How would you rate the HR departments performance in the
background verification process?
1. Poor
2. Adequate
3. Excellent
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References:
Websites –
https://www.crisil.com/en/home/about-us/our-history.html
https://www.crisil.com/en/home/about-us/overview.html
https://wap.business-standard.com/company/crisil-3265/information/company-
history
https://en.m.wikipedia.org/wiki/CRISIL
https://blog.darwinbox.com/background-verification
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