CARE Ratings Ltd · NSE:CARERATING
CARE Ratings — Investor Presentation (July 2014)
34 slides from CARE Ratings's investor presentation, July 2014
Slide 1: Celebrating Two Decades of Analytical Excellence
Celebrating Two Decades of Analytical Excellence
Slide 2: CARE Vision
CARE Vision To be a respected company that provides best - in its field - quality and value services
Slide 3: Our Values
Integrity and Transparency Pursuit of Excellence Our Values Fairness Independence Thoroughness
Slide 4: Second largest credit rating agency in India
Established in 1993 Recognized by SEBI Second largest Recognized by RBI as an ECAI credit rating agency in India* Listed on Indian Stock Exchanges (BSE, NSE) Follow best practices IOSCO and ACRAA Code of conduct *In terms of rating income Intensive Research
Slide 5: Shareholding Pattern
Shareholding Pattern IDBI Bank 17.19% Others 33.11% Canara Bank 15.21% Russell Investments 1.86% State Bank of India 6.41% ING Vysya Bank 1.99% IL&FS Financial Services IL&FS Trust Company 6.00% 3.83% Aditya Birla Private Equity The Federal Bank Trust 4.15% 4.27% Bajaj Holdings & Investment 5.98%
Slide 6: The 20 year journey
CARE listing The 20 year journey Completed Foray in Maldives on BSE & NSE 2012-13 5,000 assignments 2010-11 IPO grading 2008-09 2011-12 launched 2009-10 2005-06 Acquired Kalypto Risk Rated debt Technologies Launched Corporate volume ISO 9001-2008 Governance and Value 2007-08 crossed
Slide 7: Our Business Lines
Our Business Lines Ratings Grading Research
Slide 8: Ratings - 1: Corporate Ratings
Ratings -1 Debt Bank Loans Corporate Ratings Issuer Corporate Governance
Slide 9: Ratings - 2
Ratings - 2 Banks NBFCs Financial Securitization Sector Ratings Mutual Funds Insurance Housing Finance
Slide 10: Ratings - 3: Public Finance
Ratings - 3 Public Finance State Govt. Urban Local Entities Bodies
Slide 11: Ratings - 4
A= Ratings Professional Risk Opinion
Slide 12: Ratings - 5: Infrastructure Sector
Ratings - 5 Roads Infrastructure Sector Power Ports
Slide 13: Grading
Grading IPO Shipyard Equigrade Education Broker Maritime ESCO RESCO Real estate Construction
Slide 14: Industry Research
Industry Research Industry Research CARE Industry Customized Reports Risk Metrics Research (46 sectors) (116 sectors) Valuation of Market-linked DRHP write-ups debentures
Slide 15: Research – 1: Industry Research Reports – Scope
Research – 1: INDUSTRY RESEARCH REPORTS – SCOPE CARE Research adopts a structural approach for assessing the industry size and understanding other dynamics of the industry Operating Overview of industry Industry Structure environment Evolution of Growth Pricing Products Key user Competitive the indu
Slide 16: Research – 2: CARE Industry Risk Metrics (CIRM)
Research – 2: CARE Industry Risk Metrics (CIRM) CIRM provides an objective score for relatively ranking the different industries, thereby enabling the conversion of perceptions on sectors into scores on sectors. PARAMETERS WEIGHTAGES Structural Risks 85% This weightage is Fixed Demand 35% Supply and
Slide 17: Research – 3: Customized Research
Research – 3: CUSTOMISED RESEARCH • Market entry strategy • Market share analysis • Expansion of business • Assessing size of organized operations and unorganized players • New product launch • Assessing operational • Demand sizing parameters like manufacturing capacity, Tool for business planning •
Slide 18: Detailed Multi-layer Rating Process
Detailed Multi-layer Rating Process Three levels Query Client List of checks Approval and balances Meeting External Officials Rating Committee Rating Internal Quality Rating Note Control Committee
Slide 19: Reputed & Independent External Rating Committee
Reputed & Independent External Rating Committee Mr. Y. H. Malegam (Chairman & Former Managing Partner, S.B. Billimoria & Co.) Mr. D. R. Dogra Mr. V. Leeladhar (MD & CEO CARE) (Former Dy. Governor, RBI) Mr.P.P.Pattanayak Mr. V.K. Chopra (Former MD of State Bank of (Former Chairman and MD Mysore) Corp
Slide 20: Talent Pool
Talent Pool Qualified Professionals 576 employees MBAs, CAs, CFAs, FRM, CS, & Economists Very strong ratings and business development teams
Slide 21: Process and System Flows
Process and System Flows CARE Knowledge Centre CARE i3 (CKC) (Ci3) • Established in 2009-10 in • Integrated Information Ahmedabad Interface • Integrates Ci3 • Process protocol and Workflow Management • Enables Standardization
Slide 22: Seminars
Seminars CARE Debt Market Summit (2013) Mr. R.M. Malla, CMD, IDBI Bank Delhi Mr. Atul Kumar Rai, MD & CEO, IFCI CARE Banking Seminar (2012) Inaugurated by Mr. Anand Sinha Dy. Governor RBI Mr. T.K. Arun, The Economic Times Budget 2012-13 Analysis (2012) Mr. Sunil Jain, Financial Express Ms. S. Gopina
Slide 23: Event Partners
Event Partners Sponsorships Knowledge Partners • IMA Ninth India CFO Awards • CIMSME Banking Excellence Awards (2014) • CFO Centric Strategy Meets • ASSOCHAM – Annual Summit on • Securitization Summit Financial Markets (2013). • FICCI – Progressive Maharashtra (2009, 2010) (2013) • Seminars by FICCI
Slide 24: Economic Research
Economic Research Global Macro-Economic Domestic Reports Debt Market Review (Daily & Monthly updates) Municipal Corporations State Government Finances Monetary Policy Studies State of Economy & Budget Analysis Surveys Special Dossier/Studies for Government of India Economy & Investment Climate Surve
Slide 25: Letter from RBI Governor, April 11, 2013
April 11, 2013 ‘Dear Shri Dogra: “Markets”. 2. ‘The analysis in the report is very comprehensive and insightful. Hearty congratulations for bringing out such a quality knowledge paper. Bet vesaur , [D. Subbarao J ‘Sete wrafere wer, enfte wrefeie unl, gw - 400003, wer ‘Wor +91 22 2208 0868 /2268 1872
Slide 26: Our Growing Client Base
Our Growing Client Base 6,000 5,263 5,000 3,900 4,000 3,000 2,000 1,114 1,000 711 758 74 259 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 * * provisional data
Slide 27: Number of Assignments
Number of Assignments 8,000 7,439 7,000 5,980 6,000 5,000 4,000 3,000 2,187 2,000 1,579 1,808 1,000 778 316 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 * * provisional data
Slide 28: Volume of Debt Rated
Volume of Debt Rated 10,000 9,269 8,455 8,069 8,000 6,527 5,911 Rs. Billion 6,000 4,326 4,000 2,000 1,133 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 * * provisional data
Slide 29: Cumulative Debt
Cumulative debt 60,000 48,914 50,000 40,459 40,000 31,190 30,000 23,121 20,000 16,594 10,690 10,000 6,364 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 * * provisional data
Slide 30: International Forays
International Forays Branch operations Maldives in 2011 Technical assistance in Ecuador, MoUs Nigeria, Mexico & Nepal* *Proposed Recognition by International • Bank of Mauritius Central Banks • Hong-Kong Monetary Authority Member of Prospective Global ARC Rating Agency (along with CRAs in Brazil, Po
Slide 31: Acquisitions
Acquisitions CARE Kalypto Risk Technologies and Advisory Services Private Limited (erstwhile Kalypto Risk Technologies Private Limited) (November 2011 ) • Provides risk management software solutions with a focus on enterprise risk management for banking, insurance and other financial institutions •
Slide 32: Knowledge Tie-ups
Knowledge Tie-ups Amity Global Business Knowledge Academy School Certificate Programme in Certificate Programme in Credit Risk Assessment Credit Risk Analysis
Slide 33: Webinars
Webinars Housing Finance Iron Ore – Mar Coal Industry – Construction – Industry – Dec 2014’ Feb 2014’ Jan 2014’ 2013’ Power – Indian Indian Retail Indian Sugar Transmission & Automobile Sector – Oct Industry – Sept Distribution – Sector – Aug 2013’ 2013’ Nov 2013’ 2013’ Power Indian Cement The Telec
Slide 34: Thank You
Thank You 428 Ratings Professional Risk Opinion