Jaipuria Institute of Management Indore

A Weekly Project Report

On

“Measuring the Performance of Commercial Paper Ratings”

At

Crisil Limited

2019-21

Faculty Guide: Submitted By:

Dr. Priti Bakhshi Ravi Jaiswani
JI/2019-21/0091

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 Table of Content

1. About the company………………………………………………….……3

2. About Board of Directors………………………………………….

……...3

3. Different business verticals …………………………………………....…

4. Ownership Structure…………………………………………………...…6

5. Organizational Structure………………………………………………….7

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About the Company
Credit Rating Information Services of India Limited aka CRISIL Limited is a public limited
global analytical company which was incorporated in India in the year 1987 and is
headquartered in Mumbai, Maharashtra. The main objective of the company is to make
functioning of financial markets better. It is India’s 1st credit rating agency that provides
ratings, research and risk & advisory services to its clients. Since its incorporation the
company has been managing the credit rating system. They are known for rating the short-
term investment avenues as well as debt instruments like bonds, term loans, commercial
papers etc. The ratings help the investors in making better decisions and reduce risk as the
higher the rating the minimum chances of nonpayment.

About the Board of Directors

The Board of Directors is a group of people elected by the shareholders to ensure that the
management of the company works effectively and efficiently and also represents the interest
of the shareholders.
The Board of Directors of Crisil Ltd. consists of the chairman, Md & CEO, 4 independent
directors (2 men and 2 women) and two additional directors.
The detailed information about the Board of Directors is as follows:

Mr. John L. Berisford is the president of the S&P Global Ratings and
chairman of CRISIL Ltd. Mr. Berisford is responsible for all the business
aspects which includes Commercial, analytical and operations.

Ms. Ashu Suyash is the Managing Director & Chief Executive Officer of
Crisil Ltd. Apart from this she is also the member of Operating Committee
of S&P Global. She has a rich experience of more than 30 years in
Financial Services sector. Her total remuneration including salary,
commission and perquisites is 5,71,36,811.

Mr. M Damodaran is an Independent Director of Crisil Ltd. He is a former

IAS officer and also ex-Chairman of Securities Exchange Board of India.
He has also worked with Unit Trust of India and IDBI. His total
remuneration which includes sitting fees and commission is 39,30,000.

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 Mr. Ewout Steenbergen is the Executive Vice President and Chief
Financial Officer of S&P Global. He is responsible for the entire finance
department. His role is to ensure growth and sustainable shareholder value.
Apart from finance department, he is also responsible for strategy and
corporate development.

Mr. Martin Fraenkel is the President of S&P Global Platts. He is also the
member of operating committee for S&P Global. Previously he has worked
with CME Group and JP Morgan Chase.

Mr. Girish Paranjpe is an Independent Director of Crisil Ltd. He is also

the co-promoter of Exfinity Venture Partners. Prior to this he has worked
with Wipro and Bloom Energy International. He has more than 20 years of
working experience with Wipro at top notch positions. His total
remuneration which includes sitting fees and commission is 38,05,000.

Ms. Arundhati Bhattacharya is a women Independent Director of Crisil

Ltd. She was appointed at this position on 16 th October 2018. She has 40+
years of experience in the Indian Financial Sector. She was the 1st Women
Chairperson of State Bank of India. She is an expertise in all aspects of
banking which includes FOREX, Operations and Mergers & Acquisitions
etc. Her total remuneration which includes sitting fees and commission is
7,95,000.

Ms. Vinita Bali is also a women Independent Director at Crisil Ltd. She is a
business leader and has a vast experience in leading large corporation in
India as well as in Foreign countries. Prior to this she has worked with
brands like The Coca Cola, Cadbury, Britannia etc. Her total remuneration
which includes sitting fees and commission is 41,35,000.

Clients of Crisil Ltd. includes:

There are various clients of Crisil Ltd. ranging from micro, small and medium enterprises to
large corporate houses, investors and top notch global financial institutions. Till now they
have rated more than 33000 large and mid-scale institutes and over 150000 MSME’s in India.
They also work with investment and commercial banks, asset management companies,
insurance companies and private equities as well. Apart from them they also work with the
government of the country and policy makers in the infrastructure space in India and other
developing markets.

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Major clients of Crisil Ltd. include 3i Infotech Ltd., AU Small Finance Bank, Bajaj Finance
Ltd, Reliance Jio Infocom Ltd., HDFC Bank etc. As on 31 st December 2019, the company
generated a revenue of 1,30,772 lakhs and net income of 17,035 lakhs. The analysis provided
by them helps the institutions and the investors make better decisions. They help their clients
in picking the right investment avenues for diversification of their portfolio.

Different Business Verticals

If we look at the businesses of Crisil Ltd., then the company is expanded into majorly 6 areas
which are as follows:

1. CRISIL Ratings: As of now they have served more than 33000 large and mid-scale
clients and 150000+ MSME’s in India. They rate all debt instruments and help
investors make sound decisions. The ratings are also used in banking sector to decide
the capital adequacy.

2. CRISIL Global Research and Analytics (GR&A): They are one of the top rankers
in providing the high-end risk and research solutions. They have a huge client base
which includes 75+ global banks, 55+ buy-side firms, asset management companies,
insurance companies etc. They are the world’s leading provider of equity and fixed
income research support to banks. They operate from 8 research centers situated in
Argentina, China, India and Poland. Their rapidly growing data analytics provides
their clients with an edge over its competitors.

3. CRISIL Coalition: They operate from 5 locations globally and provide objective
research and high-end analytics to make strategic and tactical decisions across 4 areas
which are Financial Resource Analytics, Country Analytics, Client Analytics and
Competitor Analytics. They are the leading analytics provider to 25 plus corporate
and investment banks across the globe.

4. CRISIL Research: They cover about 77 sectors and are one of the leading providers
of economic and industry research. They have worked with 1200 plus Indian and
global clients. Their in-depth access to proprietary and public data access the nation,
capital markets and companies gives an edge over its competitors in developing
analytics. Apart from this they are also the leader in valuation of fixed income
securities, valuing over $1.88 trillion Indian Debt Securities.

5. CRISIL Infrastructure Advisory: They also offer the wide range of services across
the infrastructure development cycle. They help in the creation of vibrant ecosystem
through their work in the areas of policy and regulatory advisory to government and
infrastructure agencies. They are one of the leading advisors to the government and
regulators. They help in in shaping the public policies and promotes infrastructural
development. Their teams are expertise in infrastructure domain which includes
energy and natural resources, urban development and infrastructure and public
finance in India and in other emerging countries.

6. CRISIL Business Intelligence and Risk Solutions (BIRS): Last but not the least,
BIRS is a leading global risk and analytical service provider which helps financial
institutions and banks across the globe. Their members have deep knowledge of BFSI

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 domain which enables them in providing innovative solutions that helps in decision
making to banking, insurance and asset management domain.

Ownership Structure
Crisil is a public limited company. The company has issued 7,24,73,462 shares of face value
Rs.1. The market price of the share as on 31 st March 2020 was Rs. 1274.15. The percentage
of shareholding of the company is as follows:

Shareholding Patt ern

13% 1%
1%
6%
0%
1%

11%

1% 67%

Promoters Mutual Funds/UTI Banks, FIs,Insurance Cos.

FIIs Qualified Foreign Investor Others
Corporate Bodies Individuals Others

 The majority of the shares are hold by the promoters itself i.e. the S&P
Global.

 The S&P Global holds the shares of Crisil limited in the following
manner:

Name of the No. of Shares Held % of Shares Held

Shareholder
S&P Global Asian 1,15,23,106 15.90%
Holdings Pte. Ltd.

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 S&P India L L C 3,12,09,480 43.06%
S&P International L L C 60,00,000 8.28%

 The remaining shares are held by the institutions in the following

proportion:

Name of the Shareholder No. of Shares Held % of Shares Held

1.48%
Mutual Funds/UTI 10,73,013
10.55%
Banks, FIs, Insurance Cos. 76,44,844
5.52%
FIIs 39,98,289
0.73%
Qualified Foreign Investor 5,33,214
0.12%
Others 88,000

 The remaining shares are held by the Non- Institutions in the following
proportion:

Name of the Shareholder No. of Shares Held % of Shares Held

Corporate Bodies 3,87,894 0.54%

Individuals 94,74,484 13.08%
Others 5,41,138 0.74%

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Organizational Structure