ICRA rates Infosys highest on corporate governance

Rating agency ICRA has retained its highest rating for corporate governance on IT firm Infosys Technologies, citing its transparent and disbursed ownership structure, among other reasons.

"ICRA has retained the CGR1 rating assigned to the corporate governance practices of Infosys Technologies Limited," the rating agency said in a statement today.

The rating of CGR1 is the highest on ICRA's Corporate Governance Rating (CGR) scale of CGR1 to CGR6.

The CGR1 rating implies that the firm has adopted and follows such practices that provide its financial stakeholders the highest level of assurance on the quality of corporate governance.

Apart from transparent and disbursed ownership structure, ICRA said the rating reflects India's second-largest software exporter's high quality of disclosures, sound board practices, and reasonable sized, cohesive and articulate board.

The agency further took note of its robust executive management structure with visible depth in management, the considerable thrust on internal systems and control, sound financial position, and consistent high profitability.

ICRA's opinion, however, is not a certificate of statutory compliance or a comment on the rated company's future financial performance, credit rating or stock price, the agency said.