1. CRISIL

2. Who We Are ?
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services.
They are India's leading ratings agency. They are also the foremost provider of high-end research to the world's largest banks and leading corporations. With sustainable competitive advantage arising from their strong brand, unmatched credibility, market leadership across businesses, and large customer base, They deliver analysis, opinions, and solutions that make markets function better.
Their defining trait is their ability to convert data and information into expert judgements and forecasts across a wide range of domains, with deep expertise and complete objectivity.
Their values: Integrity, Independence, Analytical Rigor, Commitment and Innovation.
CRISIL's majority shareholder is Standard and Poor's (S&P). Standard & Poor's, a part of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of credit ratings.

3. Who We Serve ?
They address a rich and globally diversified client base. Within India their customers range from small enterprises to the largest corporations and financial institutions; outside India their customers include the world’s largest banks and leading corporations.
They also work with governments and policy-makers in India and other emerging markets in the infrastructure domain.

4. How We Add Value ?
They empower their 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 better-informed investment and business decisions.
Their 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, They help catalyze economic growth and development in these countries.

5. History
CRISIL pioneered ratings in India more than 20 years ago, and is today the undisputed business leader, with the largest number of rated entities and rating products.
CRISIL's rating experience covers more than entities, including 30,000 small and medium enterprises (SMEs).
1990
The CRISILCARD Service - providing comprehensive information and analytical opinion on India's corporate entities - is launched.
1996
CRISIL start 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.

6. 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.
2005
The strategic alliance with S&P since 1996 culminates in S&P's acquiring majority control of CRISIL.
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.

7. 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  
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.

8. 2011
CRISIL launches Education Grading, beginning with business schools
CRISIL Rating enhances access to funding for SMEs; Announces 20,000th SME Rating
CRISIL Ratings launches Solar grading
CRISIL Research launches Gold and Gilt Index
CRISIL Global Research & Analytics receives NASSCOM Exemplary Talent Practices Award

9. SERVICES OR OFFERINGS OF
CREDIT RATING
India's leading rating agency.
It has rated over 50,000 entities, by far the largest number in India.
It rates the entire range of Debt Instruments:
Bank Loans
Certificates of Deposit
Commercial Paper
Non Convertible Debentures
Bank Hybrid Capital Instruments
Asset-backed Securities
Mortgage Backed Securities
Perpetual Bonds

10. 2) GLOBAL RESEARCH AND ANALYTICS
It delivers the effective and qualitative opinions, and solutions for the
given research.
It offers services to the world's leading commercial and investment
banks, insurance companies, corporations, consulting firms, private
equity players, and asset management firms.
It helps clients to grow their revenues and strengthen their market
position.
Its risk and actuarial specialists help clients apply analytics to internal
models, transition to more strong trading platforms, and comply with
regulatory requirements including model validation, stress testing and
solvency too.

11. 3) RESEARCH AGENCY
CRISIL Research is India's largest independent research house.
Through constant innovation, and comprehensive research offerings,
covering the economy, industry and companies, CRISIL Research
meets the requirements of more than 750 Indian and global clients.
Apart from the standardized (latest) research reports, CRISIL also
provides perceptive, customized research that allows clients to take
informed business and investment decisions.

12. 4) CAPITAL MARKET
CRISIL offers products and services covering both equity (risk) and
debt markets thereby furthering CRISIL's objective to make markets
function better.
It gives rate to the instruments which helps the public in making
investment decisions.

13. INFRASTRUCTURE ADVISORY
It dose policy formulation, regulation, design and implementation of public-private partnership (PPP) frameworks and infrastructure financing mechanisms which helps in creating a different eco - system for infrastructure development.
It helps public institutions undertake economic and sector reforms and improve service delivery.
It helps in bidding activities process and valuations to take investment decisions at project level.
CRISIL Infrastructure Advisory is a division of CRISIL Risk and Infrastructure Solutions Limited, a wholly owned subsidiary of CRISIL Limited.

14. RISK MANAGEMENT SERVICES
Solutions provided by CRISIL help clients to identify, measure, and adjust a comprehensive range of risks such as, credit risk, price and market risk, exchange and liquidity risk, operational risk, strategic and regulatory risk.
It has adopted global quality assurance standards and are ISO 9001:2008 certified. It is a division of CRISIL Risk & Infrastructure Solutions Limited (CRIS), a wholly-owned subsidiary of CRISIL Limited.
Its given solutions help clients to minimize and intelligently manage their business risks
Its risk management solutions help clients to spread the risk management practices across their entire branch network.

15. EXECUTIVE TRAINING
CRISIL's philosophy is to train real business people for real business situations.
CRISIL creates an environment that mirrors real situations, because it believes that training has to yield results in real life.
More than 250 organisations have had their employees trained by CRISIL, and have experienced the difference that its training makes.

17. CRISIL’s Rating Symbols and Definitions:
Class of instruments
(a)Long-term debt instruments;
(b)Short-term debt instruments
(c)Long-term structured finance instruments
(d)Short-term structured finance instruments
(e)Long-term mutual fund schemes;
(f)Short-term mutual fund schemes.

18. Long-Term Debt Instruments
Rating
Rating definition as stipulated by SEBI in its Circular No.
Symbol
CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL AAA(Highest Safety)
Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
CRISIL AA
(High Safety)
Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
CRISIL A(Adequate Safety
Instruments with this rating are considered to have adequate degree of safety regarding instruments carry low credit risk.
CRISIL BBB
(Moderate Safety)
Instruments with this rating are considered to have moderate degree of safety regarding instruments carry moderate credit risk.

19. CRISIL BB
(Moderate Risk)
Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
CRISIL B
(High Risk)
Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
CRISIL C
(Very High Risk)
Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
CRISIL D
(Default)
Instruments with this rating are in default or are expected to be in default soon.
Note :
1) CRISIL may apply '+' (plus) or '-' (minus) signs for ratings from 'CRISIL AA' to 'CRISIL C' to reflect comparative standing within the category.

20. Short-Term Debt Instruments
Rating
Rating definition as stipulated by SEBI in its Circular No.
symbol
CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL A1
Instruments with this rating are considered to have very strong degree of
safety regarding timely payment of financial obligations. Such
instruments carry lowest credit risk.
CRISIL A2
Instruments with this rating are considered to have strong degree of
instruments carry low credit risk.
Instruments with this rating are considered to have moderate degree of
CRISIL A3
safety
regarding
timely
payment of
financial
obligations.
Such
instruments carry higher credit risk as compared to instruments rated in
the two higher categories.
CRISIL A4
Instruments with this rating are considered to have minimal degree of
instruments carry very high credit risk and are susceptible to default.

21. CRISIL D
Instruments with this rating are in default or expected to be in default on
maturity.
Note :
CRISIL may apply '+' (plus) sign for ratings from 'CRISIL A1' to
'CRISIL
A4' to reflect comparative standing within the category.

22. Long-Term Structured Finance Instruments
Rating symbol
R ating definition as stipulated by SEBI in its Circular No. CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL AAA(SO) (Highest Safety)
Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of instruments carry lowest credit risk.
CRISIL AA(SO) (High Safety)
Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
CRISIL A (SO) (Adequate Safety)
Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of instruments carry low credit risk.

23. CRISIL BBB
Instruments with this rating are considered to have moderate degree of
(SO)
safety
regarding
timely
service of
financial
obligations.
Such
(Moderate
instruments carry moderate credit risk.
Safety)
CRISIL BB (SO)
Instruments with this rating are considered to have moderate risk of
(Moderate Risk)
default regarding timely servicing of financial obligations.
CRISIL B (SO)
Instruments with this rating are considered to have high risk of default
(High Risk)
regarding timely servicing of financial obligations.
CRISIL C (SO)
Instruments with this rating are considered to have very high likelihood
(Very High
of default regarding timely payment of financial obligations.
Risk)
CRISIL D (SO)
Instruments with this rating are in default or are expected to be in default
(Default)
soon.
Note:
1) CRISIL may apply '+' (plus) or '-' (minus) signs for ratings from 'CRISIL
AA(SO)' to 'CRISIL C(SO)' to reflect comparative standing within the category.

24. Short-Term Structured Finance Instruments
Rating
Symbol
Rating definition as stipulated by SEBI in its Circular No.
CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL A1(SO)
Instruments with this rating are considered to have very strong degree of
safety regarding timely payment of financial obligation. Such
instruments carry the lowest credit risk.
CRISIL A2(SO)
Instruments with this rating are considered to have strong degree of
instruments carry low credit risk.
CRISIL A3(SO)
Instruments with this rating are considered to have moderate degree of
instruments carry higher credit risk as compared to instruments rated in
the two higher categories.

25. CRISIL A4(SO)
Instruments with this rating are considered to have minimal degree of
safety regarding timely payment of financial obligation. Such
instruments carry very high credit risk and are susceptible to default.
CRISIL D(SO)
Instruments with this rating are in default or expected to be in default on
maturity.
Note :
1) CRISIL may apply '+' (plus) sign for ratings from 'CRISIL A1(SO)' to
'CRISIL A4 (SO)' to reflect comparative standing within the category.

26. Long-Term Debt Mutual Fund Schemes
Rating
symbol
Rating definition as stipulated by SEBI in its Circular No.
CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL AAAmfs
Schemes with this rating are considered to have the highest degree of
safety regarding timely receipt of payments from the investments that
they have made.
CRISIL AAmfs
Schemes with this rating are considered to have the high degree of safety
regarding timely receipt of payments from the investments that they
have made.
CRISIL Amfs
Schemes with this rating are considered to have the adequate degree of
CRISIL BBBmfs
Schemes with this rating are considered to have the moderate degree of

27. CRISIL BBmfs
Schemes with this rating are considered to have moderate risk of default
regarding timely receipt of payments from the investments that they
have made.
CRISIL Bmfs
Schemes with this rating are considered to have high risk of default
CRISIL Cmfs
Schemes with this rating are considered to have very high risk of default
Note:
The ratings from 'CRISIL AAmfs' to 'CRISIL Cmfs' may be modified by the
addition of a '+' (plus) or '-' (minus) sign to reflect comparative standing within
the category.

28. Short-Term Debt Mutual Fund Schemes
Rating
Rating definition as stipulated by SEBI in its Circular No.
Symbol
CIR/MIRSD/4/2011 dated June 15, 2011
CRISIL A1mfs
Schemes with this rating are considered to have very strong degree of
safety regarding timely receipt of payments from the investments that
they have made.
CRISIL A2mfs
Schemes with this rating are considered to have strong degree of safety
regarding timely receipt of payments from the investments that they
have made.
CRISIL A3mfs
Schemes with this rating are considered to have moderate degree of

29. CRISIL A4mfs
Schemes with this rating are considered to have minimal degree of safety
regarding timely receipt of payments from the investments that they
have made.
Note:
The ratings from 'CRISIL A1mfs' to 'CRISIL A4mfs' may be modified by the
addition of a '+' (plus) sign to reflect comparative standing within the category.

30. Criteria Based on which the companies can be rated

31. 3 4 2 1 Banking and Financial Institute Financial Companies
Mobile-Telephony-Services
Software Industry

32. Main objective
Payment of interest and also the principal repayment in a timely manner

33. Why there is a need of Credit Rating?
1 .Assets side changes from Working capital loan to Property (Loan term Loans)
2. Liability side From retail customers to short term bulk deposit
3. Deregulation of interest rate over that volatile interest rate

34. CRAMEL Model Capital Adequacy Resource Raising Ability Assets Quality
Management and System Evaluation
Earning Potential
Liquidity/ Assets Liability Management
SWOT is being done
Market Position :- Scope of the Bank and FI

35. 1. Capital Adequacy Factors:-
Sustainability over medium to long term period, Perception of relative profitability
Factors:-
A. Size of capital:- High Absolute Capital will be rated high
B. Sustainability of Capital Ratios and flexibility to raise Capital:-

36. C. Growth Plans :-
Future growth of the co.
D. Basel II:-
Provision of Market and operational Risk from March 2007

37. 2. Resource Raising Ability
Banks – Deposit F.I – Wholesale Funds
Factors:-
A. Size of Deposit Base :- Large Deposits
B. Diversity in deposits base and the geographical spread :- Large coverage is viewed best

38. C. Deposit Mix :- Over all Cost of capital should be less.
D. Growth in Deposits :- Rate of Growth should be seen
E. Cost of Deposit :- Operating Cost of bank

39. For FIs Diversity of Investor base Funding Mix and cost of funds
Retail penetration and tax benefit

40. A. Geographical diversity (Assets) :-
3. Assets Quality
A. Geographical diversity (Assets) :-
B. Client profile for the corporate assets portfolio:- Sample of 100 or 200 will be verified
C. Quality of non industrial lending :- NPA assets provided to agriculture and small scale industries

41. A. Goal and Strategies :-
4.Management and System Evaluation
A. Goal and Strategies :-
B. Control :-
C. Appetite for risk :- How to fight with risk, along with available strengths
D. Competence and Integrity :-

42. 5. Earning Potential A. Level of Earning :- NPM
B. Diversity of income sources :-
C. Efficiency measures:-

43. B. Liquidity Assets/ Total Assets :-
6. Liquidity/ Assets Liability Management
A. Liquidity Risk :-
B. Liquidity Assets/ Total Assets :-
C. Proportion of small deposits :-
D. Interest rate risk :-
7. Government Support

44. Rating Criteria for Software industry
The Indian Software Industry displayed very high growth rates over the past decade driven by the increasing trend towards out sourcing of IT services by the large companies across the globe
The Indian Software industry has strong international linkages, with software exports accounting for a dominate share of its revenues.
The industry is characterized by high growth rates, low capital intensity, dependence on a steady supply of trained manpower and high technology risks.
Apart from conducting a detailed analysis of a firm’s financial position,CRISIL looks at the key determinates of its market position and operational efficiencies.

45. Business Risk Analysis
Market Position
Revenue mix
Overseas Presence
Mergers and Acquisitions
Client Profile
2.Operating efficiency
Productivity
Human resources and Knowledge management
Systems and Process

46. Revenue Mix CRISIL analyses the various vertical and horizontal segments in which company operates
Vertical Segments
Defined in terms of client industries like manufacturing, insurance and banking.
Horizontal Segments
Most Indian software companies operate in are training, software projects and services, consultancy and product as well as productized services.

47. Mergers and Acquisitions
Overseas Presence
The geographical spread of revenues is an important parameter in analysis a company’s business risk.
So, CRISIL examines whether the company has a global presence
Mergers and Acquisitions
Many Indian Companies are acquiring companies in US as well as other countries.
The successful and Speedy integration of the acquired company with the Indian Company’s existing operations is critical for such a strategy to yield optimal gains.

48. Client Profile
Crisil’s experience with highly rated software companies reveals that such players have well-established client relationship with large customer.
This leads to repeat business and provides stability to earnings.

49. Business Risk Analysis
Market Position
Revenue mix
Overseas Presence
Mergers and Acquisitions
Client Profile
2.Operating efficiency
Productivity
Human resources and Knowledge management
Systems and Process

50. Productivity CRISIL tries to understand
the company’s software engineering process
project management capabilities
CRISIL also assesses productivity parameters like
Revenue per employee
Profitability per employee
These are essential to ensure the completion of project within the budgeted cost and time estimations

51. Human Resources and Knowledge Management
Human resources and accumulated knowledge are co.’s most important asset.
Given the industry’s high employee attrition rates, a study of a co.’s HR policies assumes great importance.
Systems and processes
AS companies grow in size, the organizational relies less on individual and more on established systems and process .
This ensures a degree of replication in its software development methodologies.