Business Ethics and Corporate Governance, Second Edition

ICRA’S RATING METHODOLOGY

Corporate governance rating is being done by ICRA, where assigning it is still very much a learning process. In order to evaluate corporate governance, ICRA has decided to look at the following:

1. Shareholding structure: A transparent shareholding structure where the key shareholders are clearly identifiable and where an absence of opaque cross holdings is considered a positive feature.
2. Governance structure and management process: This focusses on the internal decision making process and the quality and nature of information presented to a company’s board. In looking at the decision making process, how responsibility is delegated and how accountability is ensured, a view is taken of not just what is laid down in procedures ...