ICRA Full Form: Functions, and Latest Financial Details

ICRA Full Form, Functions, and Latest Financial Details

What is the full form of ICRA? – ICRA Full Form

The full form of ICRA is Investment Information and Credit Rating Agency of India Limited. It was formerly known as the Investment Information and Credit Rating Agency. It was established in 1991 by leading financial institutions, commercial banks, and financial services companies. They have an alliance with Moody’s Investors Service, which is an international credit rating agency. They are one of the largest shareholders in ICRA. The aim of this alliance is to enrich ICRA’s in-house research capabilities. Moody’s provides ICRA access to its global research base. ICRA Ltd. trades on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE).

Services by ICRA Ltd. : ICRA’s credit ratings enable investors to make informed investment decisions. Credit rating helps investors in selecting the most suitable investment options. Recommended Read: Understanding Credit Rating and the Agencies in India ICRA gives credit rating to rupee-denominated debt instruments issued by –

Manufacturing companies
Commercial banks
Non-Banking Finance Companies
Financial Institutions
Public Sector Undertakings
Municipalities

Other services offered by ICRA include –

Corporate Governance
Rating Stakeholder Value and Governance Rating
Credit Risk Rating of Debt Mutual Funds
Rating of Claims Paying Ability of Insurance Companies
Project Finance Rating
Line of Credit Rating

ICRA provides information to institutional and individual investors. They also assist the regulators in promoting transparency in the financial markets. Brief History of ICRA Ltd.: January 1991 ICRA Ltd was incorporated and launched its Credit Rating Service. 1993 The company launched an independent and professional investment information service. 1995 They launched the services of Credit Assessment for small and medium scale industries. 1996 They signed an agreement with a credit rating agency Moody for risk management services. 1998 ICRA introduced a Rating Methodology for the Claims Paying Ability of General Insurance companies in India. 1999 The company became the first Indian credit rating agency to rate all non-life insurance companies. 2003 ICRA launched Project Finance Assessment Rating Service. The company entered into a shareholder and subscription agreement with IndiaCapital. 2004 They launched the services of grading of mutual fund management quality. Recommended Read: RankMF Mutual Fund Baskets – Best Option for your Financial Goals 2006 ICRA demerged their consulting division and transferred to ICRA Management Consulting Services Ltd. They acquired ICRA Online Ltd and Computer Exchange Pvt Ltd. It was later renamed as ICRA Techno Analytics Ltd. ICRA’s Credit Rating Scale : Instruments with [ICRA]AAA rating are considered to have the highest degree of safety. This is with respect to the borrower’s timely financial obligations. Such instruments carry the lowest credit risk.

ICRA’s Long-Term Rating Scale
ICRA’s Medium-Term Rating Scale (only for Public Deposits)
ICRA’s Short-Term Rating Scale
ICRA’s Issuer Rating Scale
ICRA’s Rating Scale for Instruments supported by Explicit Credit Enhancement
Structured Finance Rating
ICRA Mutual Fund Credit Risk Ratings Scale & Definitions
Special Symbols
Liquidity Indicators Definitions
Expected Loss Rating Scale

For the rating categories [ICRA]AA through to [ICRA]C, the modifiers + (plus) or – (minus) may be added to the rating symbols. This indicates their relative position within the rating categories concerned. For example, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA. Whereas, [ICRA]AA- is one notch lower than [ICRA]AA. Key Personnel :

Mr. N. Sivaraman – Managing Director & Group CEO of ICRA
Ms. Ranjana Agarwal – Independent Director of ICRA
Ms. Radhika V Haribhakti – Independent Director of ICRA
Mr. Arun Duggal – Non-Executive Chairman and an Independent Director of ICRA
Mr. Ramnath Krishnan – President-Ratings & Chief Rating Officer
Mr. Vipul Agarwal – Group Chief Financial Officer

Subsidiaries :

ICRA Analytics Limited
ICRA Lanka Limited
ICRA Nepal Limited
ICRA Management Consulting Service
PT ICRA Indonesia
ICRA Employees Welfare Trust

Listing and Shareholding at ICRA :

	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Promoters	50.55	51.87	51.87	51.87
FIIs	10.73	9.11	10.03	9.76
DIIs	28.31	28.59	29.91	29.3
Public	10	10.11	7.87	8.74
Others	0.41	0.33	0.33	0.33

A larger promoter stake is a positive sign. It indicates that the promoters believe in the company’s future growth. Nearly 52% of shares are still held by the promoters of ICRA. This shows promoter’s confidence in ICRA’s future. This also reflects in the stability of its share prices. Let’s have a look at ICRA Ltd.’s latest finances. Financial Overview(Figures in Rs. Crores) :

Market Cap (Cr): 3,132	Face Value (₹): 10	EPS (₹): 84.61
Book Value (₹): 785	Roce (%): 15.6	Debt to Equity: 0.00
Stock P/E: 38.4	ROE (%): 11.2	Dividend Yield (%): 0.83
Revenue (Cr): 308	Earnings (Cr): 88	Cash (Cr): 399
Total Debt (Cr): 0	Promoter’s Holdings (%): 51.87

ICRA Ltd. Balance Sheet (Figures in Rs. Crores) :

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Share Capital	10	10	10	10	10
Reserves	539	645	631	692	748
Borrowings	0	0	0	0	0
Other Liabilities	111	116	128	144	138
Total Liabilities	660	771	769	846	896
Fixed Assets	37	36	34	54	50
Capital Work-in-Progress	1	0	1	2	0
Investments	311	338	182	104	177
Other Assets	312	396	552	685	669
Total Assets	660	771	769	846	896
Inventories	0	0	0	0	0
Trade Receivables	34	41	34	57	48
Cash & Bank	203	231	407	527	399
Loans and Advances	42	40	54	68	176
Trade Payables	8	8	10	16	8

Recommended Read : How to Analyse a Balance Sheet of a Company ICRA Ltd. Annual Profit & Loss(Figures in Rs. Crores) :

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Sales	341	333	309	328	321
Expenses	240	231	194	215	225
Operating Profit	101	102	115	113	96
OPM	30	31	37	34	30
Other Income	27	39	49	45	48
Interest	1	0	0	0	2
Depreciation	10	9	8	6	10
Profit before tax	118	132	157	152	131
Tax	35	33	35	30	26
Net Profit	76	89	101	105	96

Recommended Read : Learn to Analyse Income Statement of a Company Mutual fund holdings and trends of ICRA Ltd :

Schemes	Quantity	As on	Prev. Qty	Change (Qty)
ADITYA BIRLA SUN LIFE TAX RELIEF 96-IDCW PAYOUT	14,523	31-05-2021	15,440	-917
ADITYA BIRLA SUN LIFE MNC FUND-GROWTH	13,548	31-05-2021	14,403	-855
PARAG PARIKH FLEXI CAP FUND- REGULAR PLAN GROWTH	13,323	31-05-2021	14,163	-840
ADITYA BIRLA SUN LIFE BANKING AND FINANCIAL SERVICES FUND – REGULAR PLAN – GROWTH	789	31-05-2021	838	-49
PARAG PARIKH TAX SAVER FUND – REGULAR PLAN-GROWTH	526	31-05-2021	559	-33
ADITYA BIRLA SUN LIFE BAL BHAVISHYA YOJNA WEALTH PLAN REGULAR GROWTH	453	31-05-2021	482	-29
TAURUS FLEXI CAP FUND – REGULAR PLAN GROWTH PLAN	258	31-05-2021	275	-17
ADITYA BIRLA SUN LIFE RETIREMENT FUND – THE 30S PLAN REGULAR GROWTH	211	31-05-2021	224	-13
ADITYA BIRLA SUN LIFE RETIREMENT FUND – THE 40S PLAN REGULAR GROWTH	71	31-05-2021	75	-4
TAURUS BANKING AND FINANCIAL SERVICES FUND – GROWTH	9	31-05-2021	9	0

Samco’s Ratings for ICRA Ltd. : ICRA’s Share Page: 4 out of 5 stars (Stock Rating Date: 17th Aug 2021) Check current rating of ICRA Share Price : https://www.samco.in/share-price/icra-ltd/ICRA/INE725G01011 Valuation Analysis of ICRA Ltd. : From an investor’s perspective – If the market price is significantly lower than the intrinsic value of the stock, the stock has a high margin of safety. It is a buy signal. From a seller’s point of view – If the market price is significantly higher than the intrinsic value, it a short sell opportunity. ICRA Ltd. enjoys a high margin of safety. ICRA takes reasonable care while evaluating a company. However, it does not give a warranty or a guarantee of safety. ICRA ratings should not be considered as a recommendation to buy, sell, or deal in the rated instruments. Visit Samco’s share pages to check the star ratings for every listed company. Search for stocks to get live prices, valuation, and analysis. Open a FREE Demat account with Samco and experience world-class trading. To understand what is credit rating and how credit ratings work, watch the following video: