Credit Rating Information Services of India Limited

Who We We are a global analytical company providing ratings, research, and risk and policy advisory services.

Are

We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations. With sustainable competitive advantage arising from our strong brand, unmatched credibility, market leadership across businesses, and large customer base, we deliver analysis, opinions, and solutions that make markets function better. Our defining trait is our ability to convert data and information into expert judgements and forecasts across a wide range of domains, with deep expertise and complete objectivity. At the core of our credibility, built up assiduously over the years, are our values: Integrity, Independence, Analytical Rigour, Commitment and Innovation. Our majority shareholder is Standard and Poor's. Standard & Poor's, a part of The McGraw-Hill Companies, is the world's foremost provider of credit ratings. Who We Serve We address a rich and globally-diversified client base. Within India our customers range from small enterprises to the largest corporations and financial institutions; outside India our customers include the world's largest banks and leading corporations. We also work with governments and policy-makers in India and other emerging markets in the infrastructure domain. How We Add Value

We empower our customers, and the markets at large, with independent analysis, benchmarks and tools. These help lenders and borrowers, issuers and investors, regulators, and market intermediaries make betterinformed investment and business decisions. Our offerings allow markets and market participants to become more transparent and efficient - by mitigating and managing risk, taking pricing decisions, generating more revenue, reducing time to market and enhancing returns. By helping shape public policy on infrastructure in emerging markets, we catalyse economic growth and development in these countries. Our People We carefully nurture a fungible talent pool that can rotate seamlessly across businesses, providing the domain expertise and cultural cement that holds our many businesses together. We are able to provide business leadership opportunities to an increasing number of our talented employees because of our rapidly-growing businesses, range of services, and geographical footprint. Our people remain the factor that makes the totality of the CRISIL group far more valuable than the sum of its parts.

CRISIL's Core Businesses

Ratings Global Research & Analytics: (Irevna, Pipal Research) CRISIL Global Research & Analytics (GR&A) is the largest and top-ranked provider of high end research and analytics services to the world's leading commercial and investment banks, insurance companies, corporations, consulting firms, private equity players and asset management firms. CRISIL GR&A operates from research centers in Argentina, China, India and Poland, providing research support across several time zones and in

multiple languages to global organizations. The CRISIL GR&A team has deep expertise in the areas of equity research, fixed income research (covering global economies, 150 global sectors and over 3000 global companies), valuations, pricing complex derivatives, structured finance, risk management, actuarial analysis and business intelligence. This expertise enables our clients enhance revenues, accelerate time to market, take pricing decisions and improve operational efficiencies. Being part of the CRISIL platform enables CRISIL GR&A to attract and retain top quality talent. CRISIL GR&A has over 2,000 employees, 75% of whom hold advanced degrees in finance, accounting and management. It has the largest teams of equity research analysts and derivative analysts outside of investment banks and the largest team of fixed income/credit analysts outside of banks/rating agencies. CRISIL GR&A has served more than 500 firms over the last decade. Our clients include:

    

12 of the top 15 global investment banks 2 of the top 10 global consulting groups 3 of the top 10 global Asset Management Companies 3 of the top 15 global insurance companies Several fortune 500 companies

CRISIL GR&A includes Irevna and Pipal Research, firms which were acquired by CRISIL. For more information, please visit www.irevna.com and www.pipalresearch.com. Research Capital Markets Infrastructure Advisory CRISIL Risk Solutions

Our History Since its inception CRISIL has constantly redefined industry standards through best practices and innovations. We share with you, key milestones from our journey...

January 29: CRISIL, India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions. Mr. N Vaghul and Mr. Pradip Shah are CRISIL's first Chairman and Managing Director, respectively.

1987

1988

January 1: CRISIL commences operations within a year of its incorporation. The business environment is far from promising for the one-year old - the lending rates are fixed, and India has no such thing as a corporate bond market as yet. And, what's more, credit rating is an idea that's far ahead of its times.

1990

The CRISILCARD Service - providing comprehensive information and analytical opinion on India's corporate entities - is launched.

1991


Despite the odds, and the initial lack of market acceptance of credit ratings, CRISIL's operations are now well established. It begins to acquire brand identity, with a reputation for analytical rigour and independence.

1992

CRISIL offers technical assistance and training to help set up Rating Agency Malaysia Berhad, and MAALOT, the Israeli securities rating company.

1993
 

CRISIL's IPO is a whopping success - its 20, 00,000 shares, sold at a premium of Rs.40 per share, are oversubscribed by 2.47 times.

1994

Mr. R Ravimohan takes over as CRISIL's Managing Director. CRISIL diversifies business portfolio with a strategic entry into advisory services, and wins its first major mandate in the infrastructure policy advisory domain.

In partnership with the National Stock Exchange of India Ltd (NSEIL), CRISIL develops and launches the CRISIL500 Equity Index, helping investors clue in on stock price movements.

1995


1996


CRISIL forges a strategic business alliance with Standard & Poor's (S&P) Ratings Group. The tie-up is part of CRISIL's strategy to develop its skills and processes.

1997


S&P acquires a 9.68 per cent stake in CRISIL. The alliance with the world's leading rating agency adds a new dimension to CRISIL's methodologies. It provides CRISIL with exposure to the international rating markets and to S&P's rating processes.

1998


CRISIL sets up India Index Services Ltd (IISL), a joint venture with NSEIL, to provide a variety of indices and index-related services and products to India's capital markets.

1999


CRISIL's proprietary Risk Assessment Model (RAM) becomes the banking industry standard: given the heightened regulatory focus on the banks' risk management practices, RAM serves as a customised credit rating model for the banks.

2000


CRISIL acquires the business, and brand, INFAC, of Information Products and Research Services (India) Pvt Ltd. INFAC is a leading provider of research to India's financial sector. The acquisition strengthens CRISIL's research business, and makes it India's leading provider of integrated research. CRISIL launches the CRISIL Composite Performance Ranking (CRISIL~CPR) to provide performance evaluation standards and investment decision support to mutual fund houses, distributors, and investors.

2001

 

CRISIL sets up subsidiary, Global Data Services of India Ltd, to standardise published financial data for analysis. CRISIL launches Mutual Fund Awards in association with CNBC-TV18 - a benchmark

award for India's best performing mutual funds. CRISIL launches the CRISIL Young Thought Leader (CYTL) Award - to attract outstanding talent and provide a platform to India's future business leaders to showcase their views.

CRISIL sets up:

2002

 

The Centre for Economic Research - to apply economic principles to live business situations CRISIL MarketWire - to provide real-time financial news services to help clients make pricing- and investment-related decisions

2003

CRISIL sets up its investment and risk management services group to offer integrated risk management solutions and advice to banks and corporates. CRISIL follows it up with its first overseas acquisition - EconoMatters Ltd (later the Gas Strategies Group), a London-based company providing natural gas related consulting, information and training, and conference-organising services.

2004


CRISIL expands its global reach further with an equity investment in the world's first regional rating agency, the Caribbean Information and Credit Rating Services Limited (CariCRIS), which CRISIL also helps set up. The CRISIL Awards for Excellence in Municipal Initiatives are instituted, to recognise outstanding programmes in urban development.

 

2005
 

The strategic alliance with S&P since 1996 culminates in S&P's acquiring majority control of CRISIL. CRISIL makes its second overseas acquisition, of Irevna, thus adding equity research to its wide canvas of work. Irevna is a leading global equity research and analytics company. CRISIL launches Small and Medium Enterprise (SME) Ratings to serve the specialised needs of the SME sector. CRISIL partners CNBC-TV18 for Emerging India Awards - the first platform to recognize and reward the achievements of India's Small & Medium Enterprises.

2006


CRISIL launches IPO grading services to provide investors with independent, reliable, and consistent assessments of the fundamental strengths of new public issues. Irevna is ranked globally as the top Investment Research Outsourcing Firm by The Black Book of Outsourcing.

2007
 

Ms. Roopa Kudva takes over as Managing Director and CEO of CRISIL, following Mr. Ravimohan's appointment as Managing Director and Region Head of S&P, South Asia. CRISIL assigns India's first Bank Loan Rating under the Reserve Bank of India's Basel-II related regulations. The Provident Fund Regulatory and Development Authority awards CRISIL with a

 

prestigious mandate to assist in the selection of Fund Managers under the New Pension Scheme. The Black Book of Outsourcing ranks Irevna the No. 1 Financial Services Industry Analytics Outsourcing Firm. CRISIL launches Real Estate Awards with CNBC AWAAZ. The award honors India's exemplary developers and builders.

2008
    

CRISIL launches Complexity Levels, an initiative to strengthen India's capital markets by providing greater transparency to investors. CRISIL's revenues cross Rs.5 billion in 2008.

2009

CRISIL's SME Ratings group assigns its 5000th SME rating. CRISIL captures about half of India's bank loan rating market. Irevna is ranked globally by The Black Book of Outsourcing as the No. 1 Investment Research and Analytics Outsourcing Firm. CRISIL Research launches Independent Equity Research (IER).

   

2010

CRISIL moves into a new, corporate head office - the new CRISIL House, at Powai, Mumbai, is a state-of-the-art, green building. CRISIL SME Ratings crosses its 15,000th SME rating. CRISIL launches Real Estate Star Ratings. CRISIL acquires Pipal Research, further strengthening its leadership in the KPO industry.

Ms. Roopa Kudva, Managing Director and Chief Executive Officer Ms. Roopa Kudva is Managing Director & Chief Executive Officer of CRISIL and she is also Region Head, South Asia, Standard & Poor's which is the foremost global provider of financial market intelligence. Prior to this, she was the Executive Director and Chief Rating Officer of CRISIL. She is also a member of Standard & Poor's South Asia Governance Council. She joined CRISIL in 1992 and has worked in emerging markets in the Mediterranean and Middle Eastern countries during her secondment to Standard & Poor's, Paris, as Director, Financial Institutions Ratings. Previously, she worked at Industrial Development Bank of India for six years in the Project Finance department. She is a graduate in Statistics and a post-graduate in management from IIM, Ahmedabad.
Corporate Social Responsibility (CSR)
At CRISIL - 'Making the markets function better' - is not limited to its business services. It is applied, in large part, also to its commitment to society, and in its initiatives to foster self reliance and a better future for the next generation. CRISIL also recognises its responsibility to increase financial awareness and education in order that economic opportunities may be more equitably distributed. Thus, CRISIL has consistently made significant investments in ensuring that its business remains relevant to the larger societal roles, and fulfils its part as a responsible corporate citizen. I. II. Financial and Awareness Donations

Making

facilitating

III. IV. Green initiatives

Accreditation

of

NGOs

I. Financial Awareness One of the principal areas of intervention by CRISIL is increasing financial awareness, to ensure greater financial inclusion. Its key initiatives in this regard include making rating services available and affordable to a large mass of small and medium enterprises, engaging in research and publishing reports that enable better assessment and decision making for capital providers, and encouraging transparency and financial conscientiousness through interactive events. These include: a. Microfinance Industry Analysis India's Top 50 Microfinance Insitutions a publication by CRISIL includes a comprehensive and incisive commentary that facilitates a structured evolution of the MFI sector which leads to increased transparency. b. Creating and disseminating information for retail investors CRISIL's Financial Awareness team conceptualised and created a large repository of educational material, customised to the needs of the general public. It is now working on the distribution plans to implement and reach out to a wide audience that stands to benefit from this material. c. CRISIL Complexity Levels - A Global First CRISIL proactively monitors the debt market for issuances and analyses these to determine the complexity levels of instruments issued, and makes it publicly available free of cost. Top II. Making and facilitating Donations CRISIL's initiative to foster the 'Culture of Giving to Society' within every CRISILite continues to receive enthusiastic support. CRISIL partnered with NGOs during the year, to provide a diverse range of opportunities to CRISILites to donate to, and participate in worthy causes. These included continuation of the successful payroll-linked giving programme in association with GiveIndia, creating greater awareness about exercise of the right to vote, blood donation camps, tree plantation drives, home repair and construction, donations of clothes and toys, and an opportunity to play Santa Claus to orphans. a. Product display by NGO On CRISIL's Annual Day in February, the National Association for the Blind was invited to display and sell handicraft products made by blind children. This received an enthusiastic response from CRISILites. b. Franchise Awareness campaign CRISIL conducted a campaign to make its employees aware of the importance of exercising their franchise in the general elections, and provided necessary assistance in the documentation and other formalities associated with enrolment in the voters' list. c. Blood donation camps In response to an urgent request by the Indian Red Cross Society for blood donation for Thalassemia affected children, a blood donation camp was organised in CRISIL's Mumbai Corporate Office. Over 90 CRISILites donated blood to the cause. d. 'Build' and 'Tree Plantation' Drives As part of the McGraw-Hill (MGH) Global Volunteer Day (GVD) activities, CRISIL partnered with Habitat for Humanity and organised a 'Build' and 'Tree Plantation' drive in Mumbai. In the 'Build' drive, volunteers along with skilled masons and the beneficiaries and their families,

helped in building homes. e. 'Joy of Giving' Week CRISIL undertook a 3-week campaign, titled 'Joy of Giving', to encourage new recruits to align themselves with the CRISIL payroll programme (in association with GiveIndia) that was initiated in 2008. f. The 'Clothes and Toys Donation' Drive As part of the 'Clothes and Toys Donation' drive (in association with Goonj) a large number of CRISILites contributed towards enhancing the joy of the less fortunate by donating clothes and toys during the festive season. g. 'An opportunity to play Santa' CRISIL's initiative, 'An opportunity to play Santa' saw 30 CRISILites spend time with, entertain, and present gifts to, a delightful group of 300 orphans at St. Catherine's Home, Mumbai. Top III. Accreditation of NGOs CRISIL has always worked towards fostering transparency in the Voluntary Organisation (VO) sector through a reliable accreditation process. To fulfill this aim, CRISIL worked with the Task Force on Accreditation of Voluntary Organisations, appointed by the Planning Commission. CRISIL assisted the task force in the following areas: Defining the procedure for accreditation of VOs Identifying the possibility and mechanism of grading of VOs/non-governmental organisations (NGOs) Suggesting viable financial models for accrediting VOs/ NGOs Top IV. Green CRISIL has also sought to ensure that its operations do not impact the environment adversely. CRISIL recently moved its offices in Mumbai to CRISIL House, Hiranandani, Powai. This 211,610 square-feet office building is an environment friendly building. It is designed to optimise consumption of scarce resources such as water, fuel and energy. The design also makes use of recyclable/renewable material, thus reducing its carbon footprint. There is a large green cover and a roof garden to ensure minimal CO2 emissions. There is a provision for allowing ample sunlight, thus reducing electricity consumption. initiatives

At the operations level, CRISIL has consolidated its data centres by reducing the number of physical servers to a fourth of the original number, by virtualisation of servers and by providing an enclosed cooling space for the servers. Video conferencing and other modern telecommunications technologies are employed to reduce travelling requirements. CRISIL uses low power-consuming desktop virtualization concepts in cases where fullfledged PCs are not required. These measures are expected to reduce CRISIL's energy consumption by upto 20 per cent, and water consumption by upto 30 per cent. CRISIL also encourages its employees to be conscious of the environment, and provides common transport as well as promotes the concept of carpooling. During the recent Earth Hour, employees of CRISIL participated by switching off lights and air conditioners in all offices worldwide.

S and P India 43.98 S and P Intl 8.45 %

CRISIL Ltd.
(Public, BOM:500092) Current price 20 Oct
th

853.75

Description
CRISIL Limited is an India-based credit rating agency. The Company is a global analytical company providing ratings, research, and risk and policy adviso Officers and directors
Roopa Kudva Chief Executive Officer, Managing Director, Whole-time Director

M. Ramsekhar

CEO - CRISIL Risk and Infrastructure Solutions Limited

Shrikant Dev

Compliance Officer, Company Secretary

Mukesh Agarwal

Director - Research

G. V. Mani

Senior Director - Global Research and Analytics

Arun Panicker

Senior Director - Operations

Raman Uberoi

Senior Director - Ratings Business

David Pearce

Non-Executive Director

Thomas Schiller

Non-Executive Director

B. V. Bhargava

Non-Executive Independent Director

ry services. It is the provider of research and analytics to the financial institutions and corporations. The Company 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 gradings. It operates from seven research centers worldwide. As of December 31, 2010, it had rated more than 10,000 borrowers, and around 17,500 SMEs. On December 3, 2010, CRISIL acquired Pipal Research, a knowledge services firm delivering financial and business research to organizations worldwide

CRISIL Ltd.
(Public, BOM:500092)

Crisil net down 20% in Sept quarter

Mumbai, Oct. 18: Crisil Ltd has reported 20 per cent lower net profit at Rs 60 crore in the July-September quarter, against Rs 75 crore in the corresponding quarter last year. Despite a 38 per cent increase in income operations at Rs 220 crore (Rs 159 crore in the corresponding quarter last year), the profitability of the credit rating agency was weighed down by 32.5 per cent in expenditure at Rs 143.53 crore (Rs 108 crore). The agency's board of directors has approved, subject to shareholders' and other approvals, a buyback at not exceeding Rs 1,000 a share and up to an aggregate of Rs 80 crore. The board has declared a third interim dividend of Rs 2.75 a share on face value of Rs 1 in addition to a first and second interim dividend of Rs 27.5 a share each declared in the first and second quarter earlier in the year on face value of Rs 10 an equity share.

Crisils research business leads the pack

The ratings business, which contributes 40% to sales, saw revenue rise by 14.4%, slower than in the June quarter when revenue rose by 19%, but profitability improved

Crisil Ltds research division continues to have a lions share of the companys performance. Shareholders will hope it continues to do so as signs of an economic slowdown become stronger. Outer view of Crisil House in Mumbai. Photo: Abhijit Bhatlekar/Mint. The companys reported net profit in the September quarter fell about 20% year-on-year (y-o-y). But the fall is solely attributable to exceptional income earned on the sale of property and investments in the year-ago quarter. Crisils operating profit margins have, in fact, improved by about 2.8 percentage points y-o-y. Combine that with a 38.3% increase in revenue, and operating profit rose by 49.2%. The ratings business, which contributes 40% to sales, saw revenue rise by 14.4%, slower than in the June quarter when revenue rose by 19%, but profitability improved. Segment profit margin for the division rose 1.65 percentage points. Better profitability could be attributed to price increases, the mix of rating assignments and cost controls.

Emkay upgrades CRISIL to `Buy`

Source: IRIS Exclusive (19-OCT-11)

Emkay Global Financial Services upgraded CRISIL to `Buy` with a revised price target of Rs 1,050 as against the current market price (CMP) of Rs 839 in its report dated Oct 18, 2011. The broking house gave the following rationale: Revenue growth in line with expectation: CRISIL Q3CY11 revenue at Rs 2.1 billion (up 32% yoy and 4.3% qoq) was lnline with our expectation. This growth in revenue was primarily led by 48% yoy (8% qoq) growth in research and information services segment at Rs 1.1 billion. Despite stiff competition, revenues from rating business remained healthy at Rs 840 million (up14.1% yoy). Advisory services at Rs 147 million were up 44% yoy (declined 6% qoq). Research revenues to drive growth: We expect the momentum in the revenue growth to sustain in coming quarters driven by research over CY11E/CY12E. The number of full time equivalents (FTE) has seen strong growth during the quarter. Same coupled with the momentum in business from Pipal research will further add to the

growth trajectory in research segment in CY11/12. We believe that strong growth in research will more than compensate any slowdown in the rating revenues. Operating profit grows by 34% yoy: Driven by healthy revenue growth coupled with 4.9% qoq decline in opex, the operating profit grew by a strong 34.1% yoy to Rs 734 million. As a result the operating margin expanded by 63bps yoy to 35%. The decline in opex was primarily led by 4.1% qoq decline in employee cost to Rs 892 million. One time gain boosts earnings: The company reported a strong 35.4%qoq growth in reported net profit to Rs 602 million. However this includes onetime profit of Rs 90 million on account of forex gains and Rs 14.5 million on account of sale of office space. Adjusted for the above one off items the net profit grew by 23.1% yoy and 25.4% qoq to Rs 525 million. Board of Directors approves buyback: As the company enjoys strong operating cash flow, the company`s board today approved buy back of shares, subject to shareholders` approval. Average operating cash flow over the last four years stood at a strong Rs 2.8 billion. CRISIL completed its previous buy back between Nov 3-10, 2010 of 128,156 (1,281,560 post split) shares at an average price of Rs 6,200 (Rs 620 post split), totalling to Rs 795 million. Though exact quantum of the buyback is not known, however, at cap of 25% of the networth CRISIL can spend another Rs 800 million on buy-back of shares. At Rs 839 a shares (today`s CMP), CRISIL can buy back up to 1 million shares or 1.2% of the equity. Valuation and view: While at 25x CY12E EPS the valuations look quite expensive, we believe that the strong cash flow generation capabilities of the company should continue to support the expensive valuations. Taking cognizance of the fact that (1) CRISIL`s earnings growth over CY11-13E is likely to be much stronger than that of the Sensex and (2) the ability of the company to replenish its cash balances each year despite paying out special dividends and stock buybacks, we are shifting our valuation methodology from premium to Sensex valuations to cash flow discounting. Accordingly, we are revising our price target on the stock to Rs 1,050 and upgrade to Buy. Recent, correction in the stock price (post buy back announcement) gives a decent 26% upside in the stock. What Does Sharpe Ratio Mean? A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio formula is:

Investopedia explains Sharpe Ratio The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a

result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed. A variation of the Sharpe ratio is the Sortino ratio, which removes the effects of upward price movements on standard deviation to measure only return against downward price volatility Read more: http://www.investopedia.com/terms/s/sharperatio.asp#ixzz1bNgz5vV1

Read more: http://www.investopedia.com/terms/s/sharperatio.asp#ixzz1bNgnu0dt What Does Beta Mean? A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns

Investopedia explains Beta Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market. Many utilities stocks have a beta of less than 1. Conversely, most high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a higher rate of return, but also posing more risk. Read more: http://www.investopedia.com/terms/b/beta.asp#ixzz1bNgv2aKh Read more: http://www.investopedia.com/terms/b/beta.asp#ixzz1bNgrFUvr