2010 Annual Report Crisil

Ready for the next level.17,500 SME Irevna’s 11 of the Acquired world’s top 15 investment Polish and Argentinian are Irevna’s clients. Strong growth in to make markets function better globally. in the global corporate sector. Strong banks are Acquired Pipal Research 11 of the world’s to expand our footprint top 15 investment footprint in the global corporate sector. Firmly positioned the largest provider of equity research in India. Acquired Pipal Research to expand our operations. Poised to become Polish and Argentinian are Irevna’s clients. Strong growth in top 15 investment 11 of the world’s 17,500 SME mark in credit ratings. 6,000 Research our footprint in the global Pipal 11 of the clients. world’s top 15 investment growth in Polish and Argentinian operations. to expand corporate the largest Poised to become operations. Poised to become the largest provider of equity banks provider sector research in India in Acquired space. Firmly Strong growth clients. are Irevna’s of equity research in India. Acquired Research to expand our footprint in the global 2011 Pipal Research to expand our footprint in the global better globally. function markets make positioned to Pipal sector. Firmly corporate in credit mark top 6,000 the world’sPolish15 investment in banks function better globally. 17,500 markets and to make are Irevna’s Firmly positioned sector space. corporate 17,500 ratings. ratings. 11 of SME Poised the clients. Strong function better globally.6,000 SME mark in credit ratings. ratings. clients. Poised to 11 Strong become the largest growth of the are Irevna’s markets to make positioned world’s top 15 in Polish and equity contents corporate overview 02 - CRISIL - Making markets function better 04 - CRISIL’s Businesses 08 - CRISIL Consolidated Ten Year Financial Highlights 10 - Events For more details visit www.crisil.com 12 - Publications financial statements 16 - Board of Directors 20 - Directors’ Report 53 - Standalone financial statements 85 - Consolidated financial statements 111 - Notice 115 - Proxy Form and Attendance Slip statutory reports 30 - Management Discussion and Analysis Report 36 - Auditors’ Certificate for Corporate Governance 38 - Report of the Directors on Corporate Governance 48 - General Information for Members 2010 - a glance 14 - Corporate Sustainability Initiatives We built scale in 2010, which will enable us to be a force in the financial markets as never before. 6,000 mark in credit ratings. 17,500 SME ratings makes us India’s largest SME rating agency. 11 of the world’s top 15 investment banks are Irevna’s clients. Strong growth in Polish and Argentinian operations. Poised to become the largest provider of equity research in India. Acquired Pipal Research to expand our footprint in the global corporate sector. Firmly positioned to make markets function better globally. CRISIL Limited corporate overview CRISIL - Making markets function better CRISIl Businesses CRISIL - MAKING MARKETS FUNCTION BETTER Who We Are CRISIl is a global analytical company providing ratings, research, and risk and policy advisory services. We are India’s leading ratings agency. We are also the foremost provider of high-end research to the world’s largest banks and leading corporations. With sustainable competitive advantage arising from our strong brand, unmatched credibility, market leadership across businesses, and large customer base, we deliver analysis, opinions, and solutions that make markets function better. Our defining trait is our ability to convert data and information into expert judgements and forecasts across a wide range of domains, with deep expertise and complete objectivity. At the core of our credibility, built up assiduously over the years, are our values: Integrity, Independence, Analytical Rigour, Commitment and Innovation. CRISIL’s majority shareholder is Standard and Poor’s (S&P). Standard & Poor’s, a part of The McGraw-Hill Companies (NYSE:MHP), is the world’s foremost provider of credit ratings. 02 Ready for the next level. Who We Serve We address a rich and globallydiversified client base. Within India our customers range from small enterprises to the largest corporations and financial institutions; outside India our customers include the world’s largest banks and leading corporations. We also work with governments and policy-makers in India and other emerging markets in the infrastructure domain. How We Add Value We empower our customers, and the markets at large, with independent analysis, benchmarks and tools. These help lenders and borrowers, issuers and investors, regulators, and market intermediaries make better-informed investment and business decisions. Our offerings allow markets and market participants to become more transparent and efficient - by mitigating and managing risk, taking pricing decisions, generating more revenue, reducing time to market and enhancing returns. By helping shape public policy on infrastructure in emerging markets, we help catalyse economic growth and development in these countries. We empower our customers, and the markets at large, with independent analysis, benchmarks and tools. These help lenders and borrowers, issuers and investors, regulators, and market intermediaries make better-informed investment and business At market decisions. Our offerings allow markets and the core of our credibility, built up assiduously over the years, are our values: participants to become more transparent and efficient - Integrity, Independence, Analytical Rigour, by mitigating and managing risk, taking pricing decisions, Innovation. Commitment and generating more revenue, reducing time to market and 03 enhancing returns. CRISIL Limited corporate overview CRISIl - Making markets function better CRISIL businesses CRISIl buSIneSSeS CRISIL Limited RATINGS RESEARCH ADVISORY* Bond Ratings Bank loan Ratings SME Ratings CRISIl Real Estate Star Ratings Education Grading GLobaL ReSeaRCH & anaLytICS Irevna Pipal Research CRISIL InfRaStRuCtuRe aDvISoRy GLobaL anaLytICaL CentRe InDIa ReSeaRCH CRISIl Centre for Economic Research Industry Research Capital Market Research Mutual Funds Fixed Income Research & Valuation Equities CRISIL RISk SoLutIonS 04 * Wholly-owned subsidiary - CRISIl Risk and Infrastructure Solutions limited insurance companies. provide coverage across time zones to the world’s major financial centres.b. clients and delivery locations are complementary to Irevna’s. and industrial sectors. Pipal’s services. Chennai and Mumbai in India. B1.400 debt instruments of a value exceeding Rs. a. Today. Highest number of outstanding SME ratings in India. quality At the right locations and in the right time zones to deliver maximum value to clients. and Wroclaw in Poland. CRISIl’s Global Research & Analytics business delivers insight driven high end financial and business research. Rates two-thirds of outstanding in India. and most prominent credit rating agency. Irevna is now preparing to commence operations in China. and an office in Chicago. and asset management firms across the world.Ready for the next level. Irevna Irevna provides high-end financial research and analytics to investment banks. Client list includes 30 fortune 500 companies.36 trillion. b. CRISIl pioneered the concept of credit rating in India more than 20 years ago. Market share in bank loan ratings exceeds 50 per cent. CRISIl has rated more than 10. across a range of industries.500 Small and Medium Enterprises (SMEs). Noida and Bangalore). Pipal has three research centres in India (Gurgaon. and has the highest number of SME ratings outstanding in India. Best-in-class service and talent base. CRISIl’s Global Analytical Centre (GAC) supports the Global Resource Management initiative of Standard & Poor’s (S&P). Works with 11 of the top 15 global investment banks. largest. enabling the combine to strengthen its leadership in the global research & analytics. CRISIl rates two-thirds of corporate bonds outstanding in India. Irevna’s teams of highlytrained professionals at research centres in Buenos Aires in Argentina. Rs.000 borrowers. RATINGS CRISIL is India’s first. executes complex modelling assignments. and has played a pivotal role in the development of India’s debt market. 05 . CRISIl acquired Pipal in December 2010. Its clients include leading global firms in the telecommunications. consumer packaged goods. RESEARCH b1. GAC supports analytical processes and information processing.a. and in the financial services space. Global Research and analytics Services CRISIl is the leading provider of highend research and analytics to the world`s largest financial institutions and leading global corporations. bonds B1. Pipal Research Pipal Research is a leading knowledge services firm delivering high-quality financial and business research to organisations worldwide. covering around 32. CRISIl has also rated around 17. and assists Standard & Poor’s (S&P) in improving workflow efficiencies. technology. Operating from seven research centres around the world. 36 trillion of debt rated. All fund houses benchmark the performance of their funds to these indices. Helps employees’ provident fund organisation (EPFO) select fund managers. enabling customers to take sharper business and investment decisions. coupled with its deep knowledge of real-world dynamics. and analytical view on the Indian economy. Official provider of valuations to all mutual funds in India. pension funds. CRISIl provides valuations for all debt instruments to the entire mutual funds industry. CRISIl`s Centre Research (C-CER) for Economic B2. The foundation of CRISIl’s integrated research capabilities. objective. CRISIl is the sole provider of standard indices for debt and hybrid portfolios. Among the most credible commentators on the Indian economy. Provides coverage industries. India Research B2. and life insurers also use this service to value their fixed income portfolios. its recentlyintroduced service. financial economics. Industry Research CRISIl Research is India’s largest independent research house. Fixed Income Research & Valuation B2. Its mutual fund rankings have been the industry standard for mutual fund evaluation in India for more than a decade. Mutual Fund Research – CRISIl Fund Services CRISIL Fund Services (CFS) is India’s leading provider of services. and indices to mutual funds. 06 . Banks. and wealth managers. CRISIl has released 81 research reports. C-CER’s core strength is its solid understanding of macroeconomics. many of them on companies that were previously thinly researched or had no research at all outstanding.CRISIL Limited corporate overview CRISIl . Equity Research CRISIl Equity Research provides independent equity research and initial public offer (IPO) grading. largest independent equity research house in India. and environmental economics. tools. public finance. It also provides premium services and products based on economic analysis. With “Cutting Edge”.b.) b2.a. CRISIl Research is adding a globally unique dimension of customisability to the provision of Research services. provident funds. Capital Market Research CRISIl Centre for Economic Research (C-CER) offers a credible. It also provides incisive customised research. on 65 90% of India’s commercial banks are our customers. providing comprehensive research coverage to more than 1200 Indian and global customers.Making markets function better CRISIL businesses CRISIl buSIneSSeS (contd. CRISIl received a prestigious mandate to publish reports on companies listed on the National Stock Exchange of India.c. custodians. Client roster includes 50 financial institutions in India and abroad. Practical and innovative solutions in 31 countries. multilaterals. banks. CRISIL RISk AND INFRASTRuCTuRE SOLuTIONS (CRIS) CRIS is a wholly-owned subsidiary of CRISIl. is India’s leading internal risk rating solution. C2. CRIS operates through its divisions CRISIl Infrastructure Advisory and CRISIl Risk Solutions. CRISIL Risk Solutions (CRS) Business CRISIL Risk Solutions (CRS) Business deploys its unique experience and skills in the areas of credit and market risk to provide a comprehensive slate of risk-related services.Ready for the next level. integrated risk management and associated consulting services. It partners leading public and private sector banks for enterprise risk management and Basel II preparedness. CRIS offers a wide range of solutions focused on infrastructure policy. urban infrastructure. RAM. CRISIl Infrastructure Advisory CRISIl’s infrastructure advisory activities range from developing enabling legislation and proactive sector policies to undertaking feasibility studies and assisting with reforms through public-private partnerships in energy. and transportation. C1. and infrastructure companies. corporate advisory. to a variety of clients including government bodies. 07 . C. Flagship product. per share) 4254 CAGR 42% 1521 1008 438 312 3212 2663 1773 70 25 6. in Crores) DIvIDenD 100 (Rs. in Crores) (Rs. in Crores) ebItDa 73 628 537 Other Income CAGR 29% 287 140 119 85 515 404 CAGR 27% 7 4 30 3 35 2 39 81 22 9 179 117 23 199 215 3 32 5 30 68 71 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) pRofIt afteR taX (Rs.5 10 10 12. in Crores) 205 161 CAGR 39% 84 61 25 19 20 141 12 17 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) MaRket CapItaLISatIon (Rs.5 15 10 100 100 196 158 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) Special Dividend 08 (9 months) .CRISIL Limited corporate overview CRISIL Consolidated ten year financial Highlights CRISIl CONSOlIDATED ten yeaR fInanCIaL HIGHLIGHtS InCoMe fRoM opeRatIonS (Rs. Ready for the next level.79 4.) 285 600 556 CAGR 37% 118 88 31 31 35 223 195 280 200 165 146 110 126 383 495 19 27 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) RetuRn on net WoRtH (%) 50 44 41 38 36 23 17 23 20 21 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months) Revenue peR eMpLoyee (Rs. in Lakhs) 29.) net WoRtH peR SHaRe (Rs.96 5.34 3.80 Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec* ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months#) # Annualised Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec* ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 (9 months #) * Excluding Pipal 09 .57 22.50 3. epS (Rs.17 4. in Lakhs) pat peR eMpLoyee (Rs.35 28.94 27.14 3.63 22.26 19.12 21.36 4.53 20.15 19.93 7.59 7.80 8.20 25. vishal thakkar . governments. organised by the Department of Economic Affairs. SEBI. Standard & Poor’s. and Chairman. and Region Head.Chairman. Minister for Finance.a glance events Publications Corporate Sustainability Initiatives eventS CRISIL and S&P seminar. Irevna. addresses the Second India PPP Conclave.Director.Senior Director. Standard & Poor’s. CRISIL. Business Development . CRISIl knowledge partner at the India PPP Conclave. and how the world is adjusting to this new reality. CRISIl . Standard & Poor’s. to discuss the fundamental shift in the functioning of economies.Head.CRISIL Limited 2010 . Government of India. 10 . (From L to R) k n vaidyanathan . at the Global Derivatives Trading and Risk Management 2010 conference sponsored by CRISIl.Managing Director and Chief Executive Officer. organised jointly by CRISIL and Standard & Poor’s.Irevna : Global Derivatives Trading and Risk Management conference 2010. CRISIL. Chris Graham .Executive Managing Director and Region Head. Standard & Poor’s. in cooperation with the World Bank. CRISIl Ratings.Director.Executive Director of the Securities and Exchange Board of India (SEBI). The New Normal. Roopa kudva . Global Derivatives. and businesses. South Asia. regulators. Mumbai (From L to R) anshuman prasad . As knowledge partners to the event. Delhi Mr. Sovereign and International Public Finance Ratings. Business Development .North America. Paris CNBC TV -18 CRISIL Mutual Fund of the Year Award 2010.Director. and C b bhave . Ministry of Finance. pranab Mukherjee.Europe. at the seminar. Roopa kudva. Mumbai (From L to R) Deven Sharma .President. CRISIl provided valuable insights into the renewable energy space. Irevna. Irevna displayed its cutting edge research in the derivatives and risk management domains. “The New Normal: The Changing Face of Financial Markets”. William Hess . Irevna. thomas Schiller . Raman uberoi . Asia Pacific. The awards are based on CRISIL’s objective and analytically rigorous fund ranking methodology. Chitra Ramakrishna .Pushing the Boundaries”.Chairman. all-round assessment of real estate projects and helps buyers benchmark and identify quality projects within a city. CRISIl Risk and Infrastructure Solutions. Corporate & Infrastructure Ratings. aimed at educating retail and institutional investors about the benefits of independent equity research. Asia Infrastructure and Project Finance Practice. at a panel discussion on “Showcase of Regional Government Initiatives . showcasing our global local expertise. PricewaterhouseCoopers. Asia Pacific. prashant Jain Executive Director & Chief Investment Officer. Li Zuwei . organised jointly with National Stock Exchange (NSE). at the event to launch CRISIl Real Estate Star Ratings (CREST). kamran khan .Vice Minister for Transportation. Chongqing Expressway Group. CRISIL Ratings. 11 .Ready for the next level.Joint Managing Director. Mark Rathbone . CRISIl and NSE seminar: Independent Equity Research. Global Capital Projects & Infrastructure team. Eimco Elecon.Head. CRISIL and Standard & Poor’s were associate sponsors at the World Bank-Singapore Infrastructure Finance Summit 2010.Whole-time Director. Mumbai CRISIl Real Estate Star Ratings launch.President Director. Singapore (From L to R) nguyen Hong truong . CREST provides a city-specific. HDFC Asset Management Company. Vietnam. Hogan Lovells and pratyush prashant Director.Regional Director. Mumbai (From L to R) k G Gupta . Roopa kudva and akash Deep Jyoti . National Stock Exchange of India. at a seminar “Independent Equity Research: Empowering Investors”. Roopa kudva. GKB Ophthalmics.Managing Director. Sinthya Roesly . Multilateral Investment Guarantee Agency.Program Director. Indonesia Infrastructure Guarantee Fund.Asia Leader. James Harris Head. CRISIL and S&P: World Bank Singapore Infrastructure Finance Summit 2010. kevin Lu . World Bank-Singapore Urban Hub. avinash Deshpande . 2. SME: Sector and Cluster Attractiveness A report on key SME sectors and clusters. The reports provide an overview of market size and funding patterns. Insight into Risk . and updates key developments on a monthly basis. and carry details on key projects and the profiles of key Indian construction sector players. SME Insights Series CRISIl’s SME Insight Series provides unique perspectives on the working of SMEs and the challenges they face. the default and transition statistics of an agency’s rated entities have been computed using monthly data. factors influencing the competitiveness of clusters. covering the demand growth drivers. 7. For the first time in India. 4. City Real(i)ty Report A ready-reckoner on emerging trends in the realty sector in ten leading Indian cities. This subscription-based report also provides an outlook on the sector. 6. published jointly by McGraw-Hill Construction and CRISIL Research. showcasing CRISIl Ratings’ strong defaultprediction abilities.CRISIL Limited 2010 .a glance Events publications Corporate Sustainability Initiatives pubLICatIonS CRISIl Ratings 1. CRISIl Research 5. and success stories of the various SME sectors. outlook. Urban India Construction Reports A compendium on 10 cities in India. Insight into Risk . 12 . Insight into Risk .Pharmaceuticals Sector An overview and outlook on key trends in the credit quality of India’s pharmaceutical sector. Four volumes on topical themes have been published. 3. and the financials of CRISIL-rated HFCs.Housing Finance Sector A snapshot of key trends in the housing finance company (HFC) segment in India.CRISIl Default Study 2009 A detailed analysis of default rates. giving investors an even clearer picture of the performance of CRISIl’s ratings. A special monthly publication on Indian macroeconomy. CRISIl Research (contd. uk. and identifies five supply-side bottlenecks that would need to be addressed for placing India on a sustained 10 per cent growth trajectory. 9.Ready for the next level. industry and financial markets for private circulation amongst senior policy makers and bank chairmen. An insightful publication on how the inherent strength of India’s domestic demand will help it sustain 8. Indian Power Sector CRISIl Infrastructure Advisory published a background paper “Indian Power Sector: Integrated Planning and Implementation XIIth Plan and Beyond” as knowledge partner of the India Electricity 2010 Conference. Mr. Government of India.) 8. Pranab Mukherjee. Ecomonitor: CRISIl Infrastructure Advisory 12. jointly organised by the Ministry of Power. the current trends in the existing labour participation and unemployment rate. 12. and the key challenges (labour mismatch and shortage) that could affect India’s economic growth and create a fiscal burden to support the unemployed. at the Second India PPP Conclave. 13 . to provide an unbiased scorecard of active and passive fund management. The report highlights the growth in India’s working population. 13. Skilling India: The Billion People Challenge 10.4 per cent annual growth over the next five years. were developed in association with Economic Consulting Associates (ECA). organised by the Department of Economic Affairs. PPP Online Toolkit and Compendium A web-based PPP toolkit. and a compendium of PPP case studies. Ministry of Finance. in cooperation with the World Bank. These were launched by the Finance Minister. and the Federation of Indian Chambers of Commerce and Industry (FICCI). India: Raising the Growth Bar 11. S&P CRISIL Indices Versus Active Funds (SPIVA) Report The S&P CRISIL SPIVA Scorecard compares the performance of Indian mutual funds across various time periods against appropriate indices. driving a 40 per cent reduction in its server footprint. This is the highest green building certification under the LEED rating system. As part of its green initiative. 14 . b. bankers and lenders to MFIs. CRISIl also consolidated its information technology infrastructure. c. CRISIl House. received the leadership in Energy and Environment Design (LEED) India Platinum rating.CRISIL Limited 2010 . attended by a large number of micro finance institutions (MFIs). GREEN INITIATIVES CRISIl House received lEED India Platinum rating. the state-of-the-art. INClUSIVE GROWTH FOR SMEs CRISIL tied up with Doordarshan (DD) and National Small Industries Corporation (NSIC) to make a series of 13 episodes on ‘Kamyabi Ki Udaan’ for Small and Medium Enterprises. ‘Srijan Financial Inclusion Forum 2010’. the highest green building certification. The partnership entails providing critical inputs and perspectives on the MFI sector to enable a better understanding of the issues affecting them.a glance Events Publications Corporate Sustainability Initiatives CORPORATE SuSTAINABILITY InItIatIveS CRISIl for Sustainable Development A brief account of CRISIl’s corporate sustainable development initiatives during 2010: a. CRISIL House has also been certified one of the most energy-efficient buildings in India. eco-friendly building in Mumbai. investors and multi-lateral organisations. This tie-up helps address a key challenge faced by small entrepreneurs: access to knowledge and expertise. FINANCIAl INClUSION CRISIl Ratings partnered with Intellectual Capital Advisory Services Pvt ltd at a two-day seminar. launched in partnership with a number of NGOs. and ‘Clothes and Toys Donation’. More than 160 CRISIlites participated in the GVD activities. In 2010. under the rating system. MAKING AND FACIlITATING DONATIONS CRISIl’s culture of giving continues . in partnership with SMIlE Foundation. the highest green building certificatio Under the McGraw-Hill initiated Global Volunteer Day (GVD) activities. saw more than 5400 (LEED) India articles of clothing and toys being donated by CRISIlites. more than 200 persons–CRISIlites and their family members–registering and received the leadership in pledging their eyes. 15 . and organising dance and art competitions. CRISIlites across locations spent a day with underprivileged children.steadily growing employee contributions improve the lives of the underprivileged. These were distributed This is among the underprivileged during Diwali. Under the same initiative. Introduced in CRISIl for the first time. eco. the Platinum rating. three such groups were formed to work on projects/with NGOs of their choice. Our ‘Joy of Giving’ Week was held in two phases: ‘Pledge your Eyes’. eff ic ient buildings in India. playing games. CRISIL conducted the ‘Build’ and ‘Tree Plantation’ drives. The ‘Clothes and Toys Energy and Environment Design Donation’ drive.corporate philosophy. a en key element of CRISIl’s erg y.friendly state- CRISIl House. CRISIl also assisted employees to form volunteer groups.Ready for the next level. and enabled them to choose and work on specific projects or with NGOs. with in Mumbai. the ‘Pledge your Eyes’ campaign received an overwhelming response. close to 300 employees have signed up. spreading joy and happiness among the needy. CRISIl’s association with Give India for the payroll giving programme continues. CRISIl House has also been certified one of the most lEED Balanced growth includes social responsibility. CRISIl partners a number of nongovernmental organisations (NGOs) to ensure that CRISIlites have many options and opportunities to donate. d. building of-the -art. and was Chairman from May 1999 to July 2008. He is also on the boards of 3i Infotech limited.S. 3. 3 2. he worked as Joint Managing Director until May 2003. a part of The McGraw-Hill Companies. Mr. and retired as Vice-Chairman and Managing Director in 1996. Global Strategy. Mr. ICICI Venture Funds Management Co. Mr. 16 . latin America. he was Executive Vice President. In 1997.CRISIL Limited statutory reports board of Directors Directors’ Report Management Discussion and Analysis BOARD OF DIReCtoRS 2 1 1. Tata Investment Corporation limited. In 1996. BV Bhargava has been associated with CRISIl since 1992. a master’s degree from the University of Wisconsin and a doctoral degree in Business Management from Ohio State University. Sharma joined The McGraw-Hill Companies in January 2002 from Booz•Allen & Hamilton. in March. he joined ICICI Bank as Executive Director and took over later as Managing Director and CEO of the bank. Tata Motors Finance limited. Mr. Europe and parts of Asia. where he was a partner. HN Sinor started his career in 1965 with Central Bank of India and in 1969 moved to Union Bank of India where he worked for 28 years. and the world’s foremost provider of independent credit ratings. He was associated with the Tariff Commission of India and the Indian Investment Centre. Director Mr. Sharma holds a bachelor’s degree from the Birla Institute of Technology in India. Mr. Much of his experience includes work with global corporations in U. Sharma is also a member of the Council on Foreign Relations and the International Advisory Board of the British-American Business Council and serves on the Asia Society Business Council. ICICI lombard General Insurance Company limited. and other companies. Deven Sharma. limited. 2002. customer solutions. After the merger of ICICI with ICICI Bank. Sharma joined Standard & Poor’s in 2007 as Executive Vice President. he joined the Indian Banks’ Association as Chief Executive and held this position until July 2008. He was associated with ICICI limited for three decades. Sharma worked with manufacturing companies. Before joining Booz•Allen. He is on the Board of ICICI lombard General Insurance Company limited. bv bhargava. at The McGraw-Hill Companies for five years. New York. L&T Infrastructure Finance Limited. Chairman Deven Sharma is President of Standard & Poor’s. L&T Finance Holdings Limited. Mr. Director Mr. Mr. Grasim Industries Limited. Before joining Standard & Poor’s. he was appointed Executive Director of Central Bank of India. as well as on branding and sales management. he provided guidance to client companies on business strategy and globalization. During his 14 years with that firm. He has authored several publications on competitive strategy. He was appointed Chief Executive Officer of the Association of Mutual Funds of India (AMFI) in February 2010. sales and marketing. Supreme Industries limited. He is Chairman of CRISIl’s Rating Committee. Thereafter. Mr. Investment Service and Global Sales. Dresser Industries and Anderson Strathclyde.. Hn Sinor. a global management consulting company. Rama Bijapurkar is a recognised thought leader on marketing strategy and consumer related issues in India. From October 2007 to August 2010. Rama bijapurkar. including Corporate Planning.Ready for the next level. Ahmedabad. IKP Centre for Advancement in Agricultural Practice. MARG (Marketing and Research Group) and MODE Services. Chief Marketing Officer for Asia- 5. Rural Finance. In the past he has served as the Chairman of the Fixed Income Money Market and Derivatives Association of India for two years. She also holds a B. Mr. and the Institute for Financial Management and Research. Nachiket Mor is a Yale World Fellow.. IKP Centre for Technologies in Public Health. he was associated with a Philadelphia-based 17 . Director Mr. and served as its founding President. and as a Board Member of Wipro Limited for five years. the Indian edition of which is titled “We are like that only . She is the author of “Winning in the Indian Market” (John Wiley and sons). and was a member of its Board of Directors from 2001 to 2007. Thomas Schiller is Executive Managing Director and Region Head for Standard & Poor’s business in Asia-Pacific. 6. nachiket Mor. Director Ms. has a Ph.Sc. Dr. She is an independent management consultant and works across a wide range of organisations in diverse sectors helping them develop market-focused business strategy.D. Project Finance. Director Dr. 4. the ICICI Foundation for Inclusive Growth. 4 6 5 Tata Capital limited.. from where she also holds a post graduate diploma in management. and several other Companies. thomas Schiller. in Economics from the University of Pennsylvania with a specialization in Finance from the Wharton School. and IFMR Trust.D. and Treasury. he assisted ICICI in setting up a philanthropic foundation. Dr. (Hons) degree in Physics from Delhi University. He assumed this position in August 2004 and is responsible for further developing Standard & Poor’s leading position in the region’s financial markets. an MBA from the Indian Institute of Management. While completing his Ph. He helped build Standard & Poor’s strong regional franchise through a series of management and market development positions held over the years. and an undergraduate degree in Physics from the Mumbai University. CARE India. She is an independent director on the board of some of India’s most respected organizations and is also a visiting faculty and on the board of governors at the Indian Institute of Management (IIM) Ahmedabad. He has worked with ICICI from 1987 to 2007 in a variety of positions. Ms.Understanding the logic of Consumer India” (Penguin). and is closely involved in the evolution of these three organisations. hedge fund (Quantitative Financial Strategies) for three years. He is now the Chairman of the Boards of Sughavazhvu Health Care. including Tokyo Office Head. Mor is currently also an independent member of a few other Boards including IKP Trust. Her prior work experience in market strategy consulting and market research includes Mckinsey & Co. Previously. She joined CRISIL in 1992. Prior to this. and. as Director. Pearce was Vice President and European Controller for the McGrawHill Companies.CRISIL Limited statutory reports board of Directors Directors’ Report Management Discussion and Analysis BOARD OF DIReCtoRS (contd. Singhania currently serves on the boards of several multinational companies’ Indian subsidiaries such as America Online. Fedders Corporation. She has worked in emerging markets in the Mediterranean and Middle Eastern countries during her secondment to Standard & Poor’s. Managing Director and Chief Executive Officer Ms. She is also a member of Standard & Poor’s Asia-Pacific Executive Committee. london. Mr. She is a graduate in Statistics and a post-graduate in management from IIM. Ms. South Asia. he took up the position of Vice President. Managing Director and Region Head for Standard & Poor’s in Japan and korea. European Finance for Standard & Poor’s providing strategic and managerial direction for Standard & Poor’s European financial operations. David Pearce joined Standard & Poor’s in 1997 when McGraw-Hill acquired Micropal. Chartered Institute of Arbitrators. “Product Liability in Asia Pacific” and “Employment laws in Asia”. David Pearce and Deven Sharma) Mr. and American Bureau of Shipping. Ravinder Singhania is the Managing Partner of Singhania & Partners. as well as listed companies such as Unitech limited. Mr. He is admitted to practice law in India as an Advocate and as a Solicitor of the Supreme Court of England and Wales. American Bar Association. In July 2002. and Vice Chairman of the Asia Pacific Committee of the 18 . he served as Finance Director for Standard & Poor’s Funds Services. she worked at Industrial Development Bank of India for six years in the Project Finance department. Director Mr. He is a consultant to the World Bank and Organisation for Economic Co-Operation and Development (OECD). Financial Institutions Ratings. 9. Solicitors & Advocates. Paris. Director (Alternate to Thomas Schiller. Roopa Kudva is Managing Director and Chief Executive Officer of CRISIL and Region Head. Ahmedabad. she was the Executive Director and Chief Rating Officer of CRISIL.) 7 9 8 Pacific. He is the country representative for Sweet & Maxell’s International Company & Commercial Law Review. National Instruments. He holds bachelor’s degrees in commerce and law from Delhi University. More recently Mr. most recently. Roopa kudva. He joined Standard & Poor’s in 1987 as a Corporate analyst in the Industrial Ratings group. where he was Group Financial Controller. David pearce. and has authored India chapters in two books. 8. In early 2006. 7. He is a former governing body Member of the Indian Council of Arbitration. and the Supreme Court Bar Association. Mr. Following this. Ravinder Singhania. He is a member of Law Society of England & Wales. Finance for Standard & Poor’s Europe/Asia. he was promoted to Senior Vice President. Standard & Poor’s. Avenue – 4. Raman Uberoi Mr. Chairman Mr. Thomas Schiller Mr. Nachiket Mor. HN Sinor Mr. Batliboi & Co. Hyderabad – 500 081 Investor Grievance Committee Mr. 19 . Chairman Mr. BV Bhargava Dr.Ratings Senior Director . R. Central Avenue. Chairman Mr. BV Bhargava. BV Bhargava. Roopa Kudva Share Transfer Agent Karvy ComputerShare Private limited Karvy House. Thomas Schiller Ms. Arun Panicker Senior Director .Operations Allotment Committee Dr. Roopa Kudva Registered Office CRISIl House.CRISIL Risk and Infrastructure Solutions Limited Senior Director . Rama Bijapurkar Mr. Thomas Schiller Mr. David Pearce Messrs. Roopa Kudva Auditors Audit Committee Mr. Chairman Mr.Ready for the next level. Powai. Deven Sharma Ms. BV Bhargava.Global Research and Analytics Director . GV Mani Mr. Rama Bijapurkar Ms. David Pearce Ms. Madhapur.17 to 24. Near Image Hospital Vittalrao Nagar. Plot No. Mukesh Agarwal Mr.Research CEO . Solicitors Messrs. Mumbai – 400 076. Wadia Ghandy & Co. Senior Management Mr. 21. HN Sinor. Chairman Ms. M Ramsekhar Mr. Chairman Ms. S. BV Bhargava. Company Secretary Compensation Committee Mr. Shrikant Dev Bankers ICICI Bank limited Andhra Bank Indian Overseas Bank Investment Committee Mr. Hiranandani Business Park. Nachiket Mor Mr. Roopa Kudva Rating Committee Mr. 553.44 26.034.22.387. 6500 per equity share of Rs. 2.156 70.417.227.statutory reports Board of Directors Directors’ Report Management Discussion and Analysis Directors’ RepoRt Dear Members.21 2.25. 2010.09 60.36 5.16 4.020.422. 25 per share each. The Company also paid a special dividend of Rs. 2010. for approval of the members at the Annual General Meeting to be held on April 15. of shares 72. the Company paid first.233. along with the audited accounts for the year ended December 31.37 7.156 equity shares at an average price of Rs. approved the buyback of equity shares of the Company for a total consideration not exceeding Rs. 2010. 200 per share as against rs.440 20 .85 24.957. second and third interim dividends of Rs. BUYBAcK of eQUitY sHAres The Board of Directors. The paid-up equity share capital of the Company (pre and post buyback of shares) is as follows:share capital of the company (Pre and Post Buyback) sr no.844 share capital (rupees) 7. 2010 total income for the year was Profit before depreciation and taxes was Deducting depreciation of Profit before tax was Deducting taxes of Profit after tax was the proposed appropriations are: Dividend Corporate Dividend Tax General Reserve Balance carried forward is 14.28. 2010 and issued a public announcement on october 20.46 Year ended December 31.560 7.96.96 2. 3.575.09.741.81.503. The Company received shareholders’ approval through postal ballot for the buyback on October 18.09 1. The total dividend for the year works out to Rs.90 19. 2010 and closed on November 10.93 19.72 DiViDenD The Directors recommend.50.89 1.387.44 15.36 20.54 23. PerforMAnce A summary of the Company’s financial performance in 2010 is given below: (rupees Lakh) Year ended December 31.37 22.67 1. the Directors are pleased to present the 24th Annual report of crisiL Limited.000 1.10 each from the open market through the stock exchanges.321. 2010. Paid up Equity Share Capital (Pre Buyback) Total Equity Shares bought back Paid up Equity Share Capital (Post Buyback) no. 25 per share for the year under review. The Company bought back 128.87 per equity share.100 per share in 2009. 2011. During the year.445.000. 6199. Particulars 1.000 12.897.918. at its meeting held on September 9. 100 per share. 80 crore and at a price not exceeding Rs. 2009 46. The buyback commenced on November 3. payment of final dividend of Rs.68.225.00 1.033. and a large customer base have geared CRISIL for the next level. when liquidity constraints led to a sharp increase in interest rates and impacted fresh debt issuances. cros sed mile sto ne of 17. S&P’s demand for support from GAC continued to grow steadily in line with S&P’s focus on deeper analysis. and quicker response to market. 21 . with volumes growing by 50 per cent over the previous year. the number of sMe ratings continued to grow rapidly. crisiL real (cre st) e s t a t e star rating. with interest rates at the short and long-term ends remaining attractive. India’s corporate bond market was active during the year. RAtINGS Highlights Over 5500 bank loan ratings (BLR) outstanding. the largest number of BLR in India. Issuances of commercial paper (CP) gathered momentum. backed by increasing acceptance by banks. a its-kind investors service for retail f i r s t -of- real in the estate sector reView of oPerAtions A. except for the last quarter of the year. 2434 new ratings assigned during the year crossed milestone of 17. Bank loan ratings maintained steady growth. 500 ratings.Ready for the next level. a first-of-its-kind service for retail investors in the real estate sector Expanded operations at Global Analytical Centre (GAC) to support Standard & Poor’s (S&P) Business environment The business environment remained steady for Ratings for the better part of 2010. small and medium enterprises (sMe) 7800 new sMe ratings assigned in 2010 Launched Strong credibility. a positive trend for india’s corporate bond market. a track record of being first to market with new products and processes. 7800 new sMe ratings assigned in 2010 Launched CRISIL Real Estate Star (CREST) Rating.500 small and medium enterprises (sMe) ratings. and the investment climate turning positive. There were also bond issuances from entities rated ‘A’ and ‘BBB’ by CRISIL. and on improving data accuracy and enhancing support for its products. This will translate into increasing requirements for GAC support. The product has received an encouraging response from all stakeholders–developers. buyers. floating savings rate. With the revival of the global economy. operations crisiL ratings maintained its market leadership in 2010. and helps buyers benchmark and identify quality projects within a city. including those on the introduction of base rate. the demand for S&P’s ratings and McGraw-Hill Financial’s data/information services is expected to grow. backed by a steady performance in BLrs and strong growth in sMe ratings. impact of 3G license on telecom companies. crisiL assigned 2434 new BLrs and 7800 sMe ratings. CP issuances are also expected to increase. The demand for SME ratings is expected to remain robust in 2011. and penetrated the commercial fixed income data and analytics segment. GAC’s operations are expected to maintain their growth momentum in 2011. These set the trend for a number of similar transactions. driven by the introduction of base rates in the banking sector. These measures have ensured that CRISIL is current on all its ratings and rating publications. and bankers. GAC is well positioned to strengthen its relationship with S&P. the long term prospects remain strong with substantial demand for funds from infrastructure companies and the need for the financial sector to tap the bond market for funding the Indian economy’s growth. capital provision for real estate assets. as banks become increasingly compliant with Basel II requirements. However. In 2010.statutory reports Board of Directors Directors’ Report Management Discussion and Analysis The bond markets are expected to remain subdued in the initial period of 2011 as liquidity conditions are expected to remain tight with the monetary policy focusing on controlling inflationary pressures. the BLr market is likely to remain steady in 2011. Analytical teams received additional training to keep them abreast of global and local developments. CRISIL has already evaluated 29 projects across 10 cities. investors. CRISIL Ratings’ commentaries. capital infusion by Government of india (Goi) in public sector banks. fuelled by recovery in the global credit markets and S&P’s continuing focus on extending its leadership in the global financial information. GAC continued to be an active partner in S&P’s initiatives to adapt to the evolving regulatory environment. a first-of-its-kind service for India’s fast-growing real estate sector. including the crisiL Leadership series for BLr customers. and MSME CEO conferences for SMEs. CRISIL continued to conduct regular outreach programmes for the benefit of investors and market participants. CRISIL Real Estate Star (CREST) Ratings. received extensive media coverage. and maintain its growth trajectory. these seminars helped extend crisiL’s reach to more than 8500 companies and bankers across the country. CRISIL also published India’s first-ever comprehensive report on the performance of all outstanding structured finance transactions. Around 150 seminars. provides a city-specific all-round assessment of real estate projects. To manage the increasing volume of business. were conducted across the country. 22 . processes and work flows were upgraded to maintain quality of output and timeliness of delivery. data and. and Goi’s fertiliser policy changes. CRISIL Ratings assigned India’s first-ever ratings for securitisation of toll-road receivables. despite significantly increased volumes. analytics businesses. and multiple-asset securitisation of microfinance institution (MFI) loans. During the year. INDIA ReSeARCH Highlights Released 65 CRISIL Independent Equity Research (IER) reports during 2010. GLoBAL ReSeARCH & ANALYtICS B. adding 22 new clients in 2010. bridging talent gaps.2.a. The demand for knowledge services is expected to remain buoyant.1. Investments in new services such as actuarial and risk analytics. with customers looking increasingly to research providers such as Irevna as a strategic means of restructuring their businesses. to deliver near-real-time industry research to customers Business environment The favourable domestic economic environment and increasing investments in 2010 revived demand for crisiL research’s offerings. provide deeper and faster analysis to the market. and monitoring the performance of fund managers Launched the new. Business environment The slowdown in the global financial markets in 2008-09 had a positive impact on the global analytics and research industry.1. operations Irevna continued to lead the global knowledge services industry. B. B.crisilresearch. from products to value-based advice. facilitate round-the-clock servicing of client requirements.com. A number of companies that were raising funds approached crisiL Research for valuation reports and sector studies to aid in their decision-making. and extend the reach of its services further. 23 . ReSeARCH B. Demand for Irevna’s services remained buoyant through 2010. and in expanding Irevna’s global footprint. corporate finance support and financial services analytics by the Black Book of Outsourcing – a Datamonitor company. have yielded positive results. and providing multi-lingual capabilities. driving robust growth in business volumes. The Irevna-Pipal Research combine is the leader in this market. enhanced website. particularly in the Mandarin language. Received a mandate from the National Stock Exchange to provide company reports on entities listed on the exchange Received a prestigious mandate from Employees Provident Fund Organisation (EPFO) to assist in selecting. significantly growing all client accounts. This will help us benefit from the growing demand for our services.Ready for the next level. risk management and actuarial services. and firmly establishing actuarial and risk analytics as growth verticals. IReVNA Highlights Expanded geographic presence with sales office in Sydney and research centre in China Ranked # 1 firm in the world in financial services research. Irevna’s international research centres in Buenos Aires (Argentina) and Wroclaw (Poland). providing investors with high-quality research on listed Indian companies. www. Irevna’s new research centre in China will help enhance these capabilities. and improve returns on investment (ROI). and has a proven track record of helping clients increase their revenues. together with those in Mumbai and Chennai. Opportunities in the wealth management space also increased because of a shift in the industry’s business model. as global players look for ways to grow their revenues and become more efficient. CRISIL also received a mandate from NSE IPFT to provide company reports on the entities listed on the exchange. It also intensified efforts to reach out to the corporate sector with industry studies and customised research offerings. including 20 sponsored by the National Stock Exchange Investor Protection Fund Trust (NSE IPFT).crisilresearch. ADVISoRY CRISIL carries out its infrastructure advisory and risk solutions businesses through its subsidiary. and a platform for trading in renewable energy certificates Received a renewed mandate from the World Bank to conduct training programmes in enhancing the regulatory reform capabilities of member regulators of the East Asia Pacific Infrastructure regulators’ forum (eAPirf) Business environment Activity levels in the urban and energy sector–the two key areas for CRIS’s advisory business showed contrasting trends in 2010. strong policy and regulatory initiatives in the renewable energy sector. for a three-year period. and the clients’ own assumptions about key variables. and downstream activity to deploy natural gas available in the country. and a revival of deferred projects in the urban sector.statutory reports Board of Directors Directors’ Report Management Discussion and Analysis operations CRISIL Research continued to build on its powerful value proposition of providing macro and micro integrated research. as the first phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) reached maturity. The revamped website www. Government of India (GoI). to assist in selecting fund managers and monitoring their performance. The energy sector saw significant investments in conventional energy projects by the public and private sectors. design the framework for exchange of renewable energy purchase obligations. although an investment revival in the energy sector mitigated the impact of the 24 . The outlook for 2011 suggests continued activity in the energy sector. the website enables clients to track and forecast the performance of 50 industries. CRISIL FundServices also worked closely with the Indian mutual fund industry to help it transition to revised valuation norms for money market instruments. CRISIL FundServices has been re-appointed by EPFO. however. using crisiL research data and analysis.nseindia. CRISIL INFRAStRUCtURe ADVISoRY BUSINeSS Highlights Assisted the Ministry of Rural Development.com.1. C. particularly in the second half. including listed companies.com and www. witnessed a slowdown in investments and activity in 2010. The urban sector. drove strong demand for CRISIL’s Independent Equity Research (IER): On a cumulative basis 81 reports have been published.crisil.com gives customers near-real-time access to research. Investors can access the equity research and company reports sponsored by NSE IPFT at www. State governments are also expected to undertake infrastructure development projects. C. the pilot project promises to be the first of many such endeavours Helped the Ministry of Non-Conventional Energy. in a unique and innovative public-private-partnership project to provide urban services in rural areas (PURA). operations Revenues in the infrastructure advisory business were constrained by the slowdown in urban sector projects investments. crisiL risk and infrastructure solutions Limited (cris). GoI. Market participants. operations crs remained focused on both consulting and software solutions. begun to shift their focus to strengthening other processes. over the medium term. and improving the quality of its deliverables and collection processes. therefore. 25 . CRIS’s growing credentials in renewable energy. likely to be in increasing demand. CRS aims to expand its product coverage and increase its product usability. and the Standardised Approaches of Basel II. and benefit from improvements in knowledge management to better harness our capabilities and experience. slowdown. the business will also focus on growing its presence in the mineral and social infrastructure sectors. The World Bank’s renewal of the mandate to CRIS to assist the East Asia Pacific Infrastructure Regulators’ Forum (EAPIRF) to enhance the regulatory reform capabilities of member regulators. such as those that relate to Advanced Approaches. CRISIL RISK SoLUtIoNS (CRS) Highlights Won key accounts in the public and private banking sector . backed by a slew of assignments in Namibia. Mozambique and South Africa.Ready for the next level. and oil. CRISIL Operational Risk Evaluator (CORE) and Credit Capital (CC). C. CRS believes that banks and financial institutions will. transportation and logistics. and minerals will add to our range of operations in the private sector. is a strong testimonial to cris’s credentials as an enabler of regulatory efficiency. winning two prestigious mandates including a reputed multilateral development institution in South East Asia Developed a loan origination system to enable automation of a bank’s credit appraisal process as an important module in its internal rating platform Business environment Over the past five years. Various enhancements have helped strengthen the product positioning as a comprehensive end-to-end solution encompassing both risk measurement as well as associated process management. and move from a compliance-based approach in risk management to a bestpractices-based approach. Most banks and financial institutions have now developed strong practices with regard to credit risk. and concluded multiple assignments in both. as part of their initiative to comply with Basel II. cris’s international operations remain strongly focused on Africa. therefore. CRIS’s advisory business has set up a team to exclusively pursue opportunities in the transport and logistics sector. CRS’s services are. CRIS made significant progress in 2010 in streamlining operations with respect to staffing. gas. The strong domain expertise that CRIS brings to the table is likely to help it benefit from the renewed developer and private equity interest in conventional energy projects. especially those pertaining to credit risk.2. most banks have invested considerable resources in their processes. CRS added vital enhancements to all its products such as Risk Assessment Model (RAM). and have. To broad-base revenue. Capital Assessment Model (CAM). continue to invest in systems and processes.portfolio of customers now includes 9 of india’s top 10 banks entered the global arena. CRIS expects to carry this momentum forward into 2011. 1083 employees were hired. and growing talent.statutory reports Board of Directors Directors’ Report Management Discussion and Analysis Intensified business development initiatives in countries such as Mauritius. e. C-CER published two special reports during the year–‘Skilling India: The Billion People Challenge’. Highlights of CRISIL’s talent Attraction Initiatives strengthened the senior management team Maintained strong presence on campuses—42 business schools were visited during the year and job offers were extended to 186 students Increased the number of seats on offer at the CRISIL Certified Analyst Programme (CCAP). The business successfully renewed its ISO9001:2008 certification. CoLLABoRAtIoN WItH S&p The various business verticals of CRISIL and S&P collaborated extensively. in 2010. CRISIL Infrastructure Advisory collaborated with S&P to co-sponsor the ‘World Bank-Singaporeinfrastructure finance summit’. More than 100 invitees. and ‘India: Raising the Growth Bar’. which entered its fourth year. the Institute for Corporate Governance (a subsidiary of the Dubai International Financial Centre) for creation of an Environmental. including media and investors. Sri Lanka and Bangladesh. CRISIL and S&P jointly released the Standard & Poor’s Indices Vs Active (SPIVA) report for India’s mutual funds industry. with 47 interns from the programme joining during the year. have also begun to yield results. consistently building crisiL’s franchise in the indian media and positioning the company as the foremost analyticsbased voice on the economy in the region. HUMAN ReSoURCeS crisiL’s Human resources team continued to focus on attracting. the total headcount in crisiL increased to 2805 as on December 31. the singapore Ministry of finance and the Monetary Authority of singapore in association with the financial times and the world Bank-AseAn infrastructure finance network. and Hawakmah. this report. It also introduced two new products—CRISIL EcoMonitor and South Asia economic outlook. As part of the collaborative efforts. up from 579 hired in 2009. CRISIL Risk Solutions worked closely with S&P to market its products and services in several geographies. Key initiatives included a joint seminar by CRISIL Ratings and S&P on ‘The New Normal: The changing face of Financial Markets’. including the Middle East and Asia Pacific. Additionally. Social & Governance (ESG) Index in their respective regions. 2010 from 2164 a year previously. a bi-annual publication. compares the performance of indices and active funds. retaining. CRISIL CeNtRe FoR eCoNoMIC ReSeARCH (C-CeR) C–CER continued to focus on research on macro economics in India and the Asia Pacific. D. c-cer continues to work with the egyptian institute of Directors (eioD). this summit was organised by the world Bank. attended the event. Inducted all 17 interns from the first batch of the Irevna Certified Analyst Programme (ICAP) 26 . F. C-CER published 11 reports/articles on Asia-Pacific economies for S&P. In accordance with the provisions of Section 217(2A) of the Companies Act. provides a variety of indices and index-related services and products to the capital markets.INDIA INDeX SeRVICeS AND pRoDUCtS LIMIteD India Index Services and Products Limited (IISL). within India for facilitating the launch of Index Funds. CRISIL’s 49:51 joint venture with National Stock Exchange of India Limited (NSE). These trainings ranged from technical subjects to functional and behavioural skill-building programmes. Asset Management Companies. JoINt VeNtURe .Ready for the next level. ACQUISItIoN oF pIpAL ReSeARCH CRISIL signed agreements on September 22. aggregating 77. H. I. More than 1100 training sessions were conducted organisation-wide. the Directors’ Report is being sent to the shareholders without this annexure. IISL also concluded licensing agreements for issuance of structured products linked to the S&P CNX Nifty Index outside India. G. IISL issued licenses to various clients such as Insurance Companies. and then devising a comprehensive training plan to address gaps in skill sets. during the year. 27 . the world’s leading provider of investible equity indices. During the year. SUBSIDIARIeS CRISIL has been granted an exemption by the Ministry of Corporate Affairs from attaching individual annual reports of its subsidiary companies to its annual report. Exchange Traded Funds and issuance of debentures that carry returns linked to the S&P CNX Nifty Index. 2010. etc. the transaction was completed with effect from December 3. 2.4 million or more per annum. the CRISIL Young Thought Leader (CYTL) competition. After completion of all conditions precedent. 93 employees received remuneration of Rs. 1956.752 man-hours of training. ‘crisiL AwArDs Celebrating Winning Performances’ was revamped. 2010 for the acquisition of the assets of Pipal Research corporation (Prc) including 100% of the share capital of Pipal research Analytics and information Services India Private Limited. expanding the scope of the awards. Shareholders interested in obtaining a copy of the annexure may write to the Company Secretary at CRISIL’s registered office. the rewards and recognition programme. the annual accounts of the subsidiary companies and the related information will be made available to shareholders who seek such information. the names and other particulars of employees are set out in the annexure to the Director’s Report. CRISIL’s brand-building and thought leadership initiative. IISL has a licensing and marketing agreement with S&P. to increase employee engagement. 1956 and the rules framed thereunder. A statement containing brief financial details of these companies is included in the annual report. increasing the transparency of the process. In terms of the provisions of Section 219(1) (b) (iv) of the Companies Act. received 153 responses from students of 62 business colleges and graduate schools. by understanding the functional and behavioural competencies required for each role. and providing greater visibility to award winners. Retaining talent CRISIL followed a structured approach towards people development. (iv) The Directors have prepared the annual accounts on a going concern basis.1 pARtICULARS ReGARDING CoNSeRVAtIoN oF eNeRGY. SR Batliboi & Co. the other particulars relating to conservation of energy and technology absorption stipulated in the Companies (Disclosure of Particulars in the report of the Board of Directors) rules. (ii) The Directors have selected such accounting policies and applied them consistently and made 28 . hold office up to the ensuing Annual General Meeting and the Board recommends their reappointment. L. M. the applicable accounting standards have been followed. as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India. K. DIReCtoRS’ ReSpoNSIBILItY StAteMeNt AS ReQUIReD UNDeR tHe pRoVISIoNS CoNtAINeD IN SeCtIoN 217(2AA) oF tHe CoMpANIeS ACt. Nachiket Mor retire by rotation and being eligible. 1957. CoRpoRAte GoVeRNANCe The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI. N. The certificate from the auditors of the Company confirming compliance with the conditions of corporate governance as stipulated under Clause 49.statutory reports Board of Directors Directors’ Report Management Discussion and Analysis J. Mr. DIReCtoRS In accordance with the articles of association of the Company and the provisions of the Companies Act. 1956 Your Directors hereby confirm that: (i) In the preparation of the annual accounts. since the company does not own any manufacturing facility. MANAGeMeNt DISCUSSIoN AND ANALYSIS RepoRt Management Discussion and Analysis Report for the year under review. is presented in a separate section forming part of the Annual report. N. BV Bhargava and Dr. offer themselves for reappointment. is attached to this report. 8 and 9 in the notes to the Accounts. (iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for that period. otHeRS N. The report on corporate governance as stipulated under Clause 49 of the Listing Agreement forms part of the Annual report. M/s.2. Chartered Accountants. AUDItoRS The Statutory Auditors. 1988 are not applicable. teCHNoLoGY ABSoRptIoN AND FoReIGN eXCHANGe eARNINGS AND eXpeNDItURe The particulars regarding foreign exchange earnings and expenditure appear at Item No. The affiliation with Standard and Poor’s has been a source of great strength. february 14. Acknowledgements The Board of Directors wishes to thank the employees of CRISIL for their exemplary dedication and the excellence they have displayed in conducting the operations of CRISIL. and the state governments. The Board acknowledges the splendid support provided by market intermediaries. employees Stock option Scheme The shareholders of the Company by postal ballot on February 4. The Board also wishes to place on record its sincere appreciation of the faith reposed in the professional integrity of crisiL by customers and investors who have patronised its services. 2011 Deven Sharma chairman 29 .Ready for the next level. on behalf of the Board of Directors. The role played by the media in highlighting the good work done by crisiL is deeply appreciated. Mumbai. 2011 approved the Employees Stock option scheme for employees and whole-time Directors of crisiL and its subsidiaries. the Government of India. the Reserve Bank of India. the Board of Directors also wishes to place on record its gratitude for the faith reposed in CRISIL by the Securities and Exchange Board of India. Standard & Poor’s is a part of The Mc Graw-Hill companies. We are India’s leading ratings agency. CRISIL’s Infrastructure Advisory business has two main segments—energy and urban development. particularly in the ASEAN market. Annexure to the Directors’ Report AnALYsis of finAnciAL conDition AnD resULts of oPerAtions The accompanying financial statements have been prepared in accordance with the requirements of the Companies Act. CRISIL’s management accepts responsibility for the integrity and objectivity of these financial statements. The outlook for CRISIL Risk Solutions (CRS) is positive as banks and financial institutions continue to invest in Risk Management Systems. research and risk and policy advisory services. Irevna continued to maintain leadership in equity. CRISIL’s India research business benefited from an improvement in the domestic business environment. The business environment remained steady for Ratings during 2010. while momentum in BLR and SME ratings is expected to continue. is the world’s foremost provider of independent credit ratings. The outlook for 2011 continues to be positive for the energy sector. and Generally Accepted Accounting Principles and accounting standards prevailing in India. The Global Analytical Centre (GAC) operations are expected to maintain growth momentum. CRS is also looking at expanding its business. Irevna’s investment in new products and the new international research centre in China will support the division’s growth in the future. CRISIL’s Global Research and Analytics business performed well in 2010. the urban development segment witnessed a slowdown in the second half of 2010. Standard and Poor’s. with several new roles being added. quantitative and actuarial services. with business volumes growing considerably. the Bank Loan ratings (BLr) and small and Medium enterprise ratings (sMe) segments maintained consistent growth. Growth for CRISIL’s Ratings business was driven by overall improvement in investor sentiment. 30 . We are also the foremost provider of high-end research to the world’s largest banks and leading corporations. in line with recovery in the global credit markets. improvement is also expected in the urban development segment as the government initiates steps to arrest the slowdown in this segment. derivative.statutory reports Board of Directors Directors’ report Management Discussion and Analysis MAnAGeMent DiscUssion AnD AnALYsis RepoRt BUsiness AnD inDUstrY oVerView CRISIL is a globally diversified analytical company providing ratings. fixed income. While the energy segment benefited from investments and policy initiatives. and for the estimates and judgments used therein. leading to improvement in the bond and commercial paper market. increasing interest rates towards the end of the year could impact fresh bond and commercial paper issuance in the near term. During 2010 Irevna’s research centers based in Poland and Argentina saw good growth. CRISIL’s majority shareholder. 1956. as against Rs. The assets sold were mainly office properties.55 4.024.75 8. The assets acquired included equipment. if considered necessary. 2010 (rupees Lakh) 17738.08 6.99 9. borrow to fund capital expenditure.993. 2010. 930. Cash and cash equivalents constituted 34% of total assets as on December 31. 31.759. 2010.00 13. The increase in debtors outstanding has been mainly on account of an increase in receivables in the research business.119.984. A.50 lakh as on December 31. The details of the investments are as under: category cash and Bank Balance Fixed Deposit Money Market Mutual funds Fixed Maturity Plans totAL 2010 (rupees Lakh) 3.235.189. (representing an outstanding of 69 days of operating revenue) as against 17% (representing an outstanding of 61 days of operating revenue) during the previous year. 3) Current Assets.944.61 23.27 1.70 8. 2010.53 6. the buyback programme and the Pipal acquisition. the company’s investment in fixed assets and capital work in progress was Rs.180.83 6. mainly on account of payouts for a one-time special dividend. 31. was rs. The company expects to fund its investments in fixed assets and infrastructure from its internal accruals and liquid assets.69 7753. computers. Depreciation as a percentage of total income remained constant at 3% and accumulated depreciation as a percentage of the gross block was 44% as against 55% in the previous year. 2009.366.415.000.64 lakh as on December 31. It may.88 31% 26% 43% 0% 100% % Dec.3. as against 57% in the previous year.990. 31 . 2009 (rupees Lakh) 10. Loans and Advances sundry debtors were rs.119.02 % 26% 67% 0% 7% 100% 2009 (rupees Lakh) 7.02 lakh.88 lakh in the previous year.36 3% 55% 61% 28% 102% -100% -12% Growth ( %) The Company’s treasury position as of December 31. as against rs. 415.3 9.92 lakh.045.311. The debtors constituted 19% of the total operating revenue.Ready for the next level.44 9999. is lower than that of the previous year. 23. and leasehold improvements to support expansion of business and to provide for replacement of existing assets.359.328. however. computers and furniture.83 11. Financial Condition 1) Fixed Assets At the end of the year. 2) Investments and treasury the company’s treasury as on December 31.67 lakh.00 3% 44% Dec. 7. the company’s investments in fixed assets were as follows: Details Gross Block Less : Accumulated Depreciation Net Block Add : Capital Work in Progress Net Fixed Assets Depreciation as a % of total income Accumulated Depreciation as % of Gross Block During the year.13. whereas sale of assets realised Rs. 10. 2010. statutory reports Board of Directors Directors’ report Management Discussion and Analysis The break-up of debtors relating to segments is given below: As on Dec 31,2010 segment Rating Services Research Services totAL (rupees Lakh) 3,601.10 6,423.41 10,024.50 % 36% 64% 100% As on Dec 31,2009 (rupees Lakh) 3,491.70 3,836.94 7,328.64 % 48% 52% 100% %change 3% 67% 37% The company believes that the outstanding debtors are recoverable. The company has adequate provision for bad debts. Loans and advances comprise loans to staff, advances recoverable in cash or kind, sundry deposits, and loan to subsidiary. Advances recoverable in cash or kind or for value to be received are mainly towards amounts paid in advance for value and services to be received in future. Sundry deposits represent deposits for premises taken on lease, telephone, electricity and others. 4) Current Liabilities & provisions: Sundry creditors include amounts payable to vendors for supply of goods and services, provision for bonus payable to staff and commissions payable to directors. Advances received from clients include fees received for which services have not yet been rendered, and unearned revenue at year-end, which pertains to services to be rendered in the next financial year, for which the related costs were not yet incurred. Provision for leave encashment and gratuity represents the company’s liability for leave encashment and gratuity, valued on an actuarial basis as per Accounting Standards 15 notified by Companies Accounting Standards Rules, 2006.The valuation is made as per the Projected Unit Credit Method, taking into account qualifying salary projected upto the assumed date of cessation of employment for whatever reason. The proposed dividend represents the dividend recommended to the shareholders by the Board of Directors, which will be paid after the Annual General Meeting upon approval by the shareholders. B. Results of operations the summary of the operating performance for the year is given below. (rupees Lakhs) results of operations Particulars income from operations other income total income Expenses Personnel Expenses Establishment Expenses Other Expenses Depreciation Operating Expenses Profit before Tax Provision for Taxation Profit after Tax & before prior period items Prior period expense, net of tax Profit after Tax 12 Months ended Dec-10 % 52,871.21 88% 7,362.23 12% 60,233.44 100% 19,890.45 6,123.91 7,026.42 2,020.85 35,061.63 25,171.81 5,321.90 19,849.91 274.45 19,575.46 33% 10% 12% 3% 58% 42% 9% 33% 0% 32% 12 Months ended Dec-09 % 44,162.34 95% 2,283.02 5% 46,445.36 100% 15,953.90 4,741.51 5,327.86 1,387.93 27,411.20 19,034.16 4,000.44 15,033.72 15,033.72 34% 10% 11% 3% 59% 41% 9% 32% 0% 32% Growth % 20% 222% 30% 25% 29% 32% 46% 28% 32% 33% 32% 0% 32% 32 Ready for the next level. During the year, total income grew by 30% and operating expenses by 28% over the previous year. the growth in operating income was on account of growth in both the rating and research segments, while the increase in operating expenses was mainly on account of depreciation and costs of moving to the new office premises. Other income growth was mainly on account of one time sale of investment and property. The net profit after tax, excluding prior period items, grew by 31 %, despite a challenging business environment. operating Revenue (rupees Lakh) 12 Months ended segment Rating Services Research Services income from operations Dec-10 28,408.77 24,462.44 52,871.21 % 54% 46% 100% 12 Months ended Dec-09 23,890.16 20,272.18 44,162.34 % 54% 46% 100% Growth % 19% 21% 20% During the year, rating income grew by 19%, mainly driven by growth in BLR and SME ratings, whereas research income recorded a growth of 21% mainly on account of strong growth in Irevna and CRISIL research. The composition and growth of expenses during the year was as follows: (rupees Lakh) 12 Months ended Particulars Personnel Expenses Establishment Expenses Other Expenses Depreciation Total Expenses income from operations Dec- 10 19,890.45 6,123.91 7,026.42 2,020.85 35,061.63 52,871.21 % 38% 12% 13% 4% 66% 100% 12 Months ended Dec-09 15,953.90 4,741.51 5,327.86 1,387.93 27,411.20 44,162.34 % 36% 11% 12% 3% 62% 100% Growth % 25% 29% 32% 46% 28% 24% During the year, personnel expenses increased by 25% due to increase in salaries and addition of 442 employees. Establishment expenses were higher due to operationalisation of new offices during the year. The revenue and profit per employee were Rs. 24.93 lakhs (+2.5 %) and Rs 9.25 Lakhs (+11.8 %) respectively. The company will continue with its initiatives to improve its revenue and profit per employee through business process re-engineering and effective use of technology. The company constantly strives to make its salary structure competitive in the market to attract and retain talent. Revenues and profits per employee for the past five years have been as under: Year ended Average number of Employees 2,121 Operating Revenue per employee (rupees Lakh) Net Profit per Employee (Rupees Lakh) Interest the company continued to be debt-free during the year and therefore, did not incur any interest expense. 24.93 9.25 24.31 8.28 23.25 8.44 21.87 6.05 21.73 5.50 1,817 1,627 1,168 680 Dec-10 Dec-09 Dec-08 Dec-07 Dec-06 33 statutory reports Board of Directors Directors’ report Management Discussion and Analysis C. Risk Management CRISIL manages risks in its business operations as follows: 1) Business Risks To mitigate the risk of high dependence on any one business for revenues, the company has adopted a strategy of launching new products/services, globalizing its operations, and diversifying into different business segments. the strategy has yielded good results and the company therefore, now has a well diversified stream of revenues. To address the risk of dependence on a few large clients and a few sectors in the business segments, the company has also actively sought to diversify its client base and industry segments. The company strives to add value to its clients by providing services of a superior quality, and maintaining a robust franchise with investors and end-users, to mitigate the risk arising from price competition. Repeat business from large clients, nevertheless, continues to contribute significantly to the company’s revenues. During the year, we launched a new product, CRISIL Real Estate Star Rating (CREST) and added multiple service offerings in Irevna. CRISIL Ratings’ Centre of Excellence, and the product quality assurance wings assist in designing and refining methodologies, and facilitate knowledge accumulation and dissemination. This is aimed at improving the predictive capability of CRISIL’s ratings, opinions and advice to guard its credibility in the market place. competition in the talent market challenges the company’s ability to retain employees. to address this risk, the company continues to provide its staff with regular training and challenging job opportunities within the group, and to make its salary structure merit-based and competitive in the market to attract and retain talent. the risk of disruption to its business operations is also minimized through automation of processes, business process re-engineering and effective use of technology. With increased proportion of revenues now being in foreign currencies, the risk of variation in the currency rates for exported services is now on the increase. In 2010, the company initiated a hedge programme to mitigate foreign exchange risk. The hedge programme covers a significant portion of projected future revenues over a 12 month period and is restricted to plainvanilla forward contracts. Appropriate internal controls are in place for the hedging programme. 2) Financial Risks crisiL has been a debt-free company since its date of incorporation. the company has followed the strategy of funding all its expansion, diversification and infrastructure-related expenditure through internal accruals. 3) Legal & Statutory Risks the company has no material litigation in relation to contractual obligations pending against it in any court in India or abroad. The company secretary functions as a compliance officer to advice the company on issues relating to compliance with law, and to preempt violations of the same. The compliance officer reports at every board meeting on the company’s initiatives to comply with the laws of various jurisdictions. The company also seeks independent legal advice wherever necessary. 4) technology-Related Risks The company uses information technology extensively for its businesses. All technology services are provided through laid-down policies and processes. These processes allow information access to personnel within the company based on identified roles. A systems audit is conducted regularly to ensure that the policies and processes are satisfactory, and in line with internationally-accepted best practices. the company’s business processes are automated through customised business 34 The present Government policy is directed towards meeting investment requirements through resource mobilisation from the capital markets. and to provide for redundancy 5) Audit and Internal Controls CRISIL has well-established processes and clearly-defined roles and responsibilities for people at various levels. coupled with adequate internal information systems embedded in business automation software. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. which depend on several factors. market development. the company continues to pursue its strategy of diversification. to mitigate the risk of dependence on mandated businesses. the business teams have defined a business continuity plan and have tested it with the help of the IT team. anticipates. and for disaster recovery. except where the conversion or redemption is within 18 months. and requisite guidelines and procedures augment the internal controls. For critical business processes. 6) policy Risks The company derives a significant portion of its revenues from Rating services. reviews by the Audit Committee. and showcasing the utility and benefits of ratings. therefore. applications that capture and maintain information regarding business processes. the company also possesses intellectual property rights for customised business applications. expects. The company assumes no responsibility to publicly amend any forward-looking statements. differ materially from those projected in these forward-looking statements. The above discussion contains forward-looking statements. An extensive programme of internal audit conducted by an independent firm.Ready for the next level. performance. these procedures ensure that all transactions are properly reported and classified in the financial records. However. or achievements may. the future. expenditure and financial results. and projections for. All such statements address the expectations from. The company’s actual results. This. ensures proper information flow for the decision-making process. The Reserve Bank of India has mandated the use of ratings from approved rating agencies by Indian banks for calculating their capital requirements under the standardised approach for Basel ii. The technology department keeps continuously abreast of technology changes. which may be identified by their use of words such as plans. Ratings are also mandatory for all commercial paper issuances. on the basis of any subsequent developments. thus protecting its knowledge base. product development. The Executive Committee monitors business operations through regular reviews of performance vis-à-vis budgets. and globalising its operations. Adherence to these processes is ensured through frequent internal audits. At present. including regulatory policy. including but not limited to statements about the company’s strategy for growth. 35 . information or events. and suitably undertakes projects for technology upgradation to keep the technology infrastructure current. It also seeks to build a strong franchise with investors by holding investor meets and seminars for improving transparency around ratings and rating methodologies. These forward-looking statements are based on assumptions and expectation of future events. The technology used by the company at all locations provides for redundancy. The internal control system is designed to ensure that financial and other records are reliable for preparing financial statements and other information. will. intends. market position. ratings are mandatory for all public offerings of debentures. It is neither an audit nor an expression of opinion on the financial statements of the Company.: 301003E chartered Accountants per Shrawan Jalan Partner Mumbai. Firm Registration No. 2011 Membership No: 102102 36 . we certify that the company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement. 2010. February 14.R. The compliance of conditions of Corporate Governance is the responsibility of the Management. Batliboi & Co. We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the Management has conducted the affairs of the Company. Our examination was limited to procedures and implementation thereof. as stipulated in clause 49 of the Listing Agreement of the said company with the Stock Exchanges. In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the Management. adopted by the Company for ensuring the compliance with the conditions of Corporate Governance as stipulated in the said Clause.statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance AUDItoRS’ CeRtIFICAte for Corporate Governance to the Members of CRISIL Limited We have examined the compliance of conditions of Corporate Governance by CRISIL Limited for the year ended 31st December.. For S. 2011 Managing Director & Chief Executive Officer 37 . for crisiL Limited Roopa Kudva Date: February 14. CHIeF eXeCUtIVe oFFICeR’S DeCLARAtIoN to the Members of CRISIL Limited I hereby confirm that all the members of the Board and Senior Management have affirmed compliance with the code of conduct.Ready for the next level. at least two-thirds of the Board of Directors should be retiring Directors. skills and experience in various sectors and industries required to manage and guide the Company. The Company has adopted best practices for corporate governance. Whole-time Directors are appointed by the shareholders for a maximum period of five years but can be re-appointed on completion of their term.N. Whole-time Directors are excluded from serving on the Board of any other entity unless the said entity has interests that are germane to the business of the company. the retiring Directors qualify for re-appointment. expertise. the Directors have a significant degree of commitment to the Company and devote adequate time for the meetings. the change of Directors on the Board of crisiL. Bhargava. Ravinder Singhania is a partner. would be so accomplished that at no point of time. The Chairman is a non-executive Director. 38 . Mr. The Board comprises individuals with personal characteristics and core competencies such as the recognition of the importance of the Board’s tasks. sense of accountability and track record of achievements. H. The Company has one alternate Director. Board members possess the education. clients. report of the Directors on BOARD OF DIRECTORS: Size and Composition of the Board: the Board of Directors has eight members. B. While reappointing Directors on the Board and committees of the Board. One-third of these Directors are required to retire every year and if eligible. the Board can have up to 15 members. Besides having financial literacy. Criteria for Board Membership: The members of the Board of Directors of the Company are eminent persons of proven competence and integrity.statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance corPorAte GoVeRNANCe CRISIL has been practicing the principles of good corporate governance over the years. Every Director is expected to attend at least 60% of the Board meetings held in a year. and enhanced shareholder value while protecting the interests of other stakeholders. The Board has adopted the following guidelines regarding the appointment and tenure of a non-whole time Director on the Board :1. preparation and attendance. 2. experience. Membership term: As per the Articles of Association of the company. 3. if carried. The Directors present below the Company’s policies and practices on corporate governance. and disclosure standards. integrity. Nachiket Mor are the Independent Directors on the Board of the Company. Ms. leadership qualities and the ability to think strategically. None of the nonwhole-time Directors of the Company have any pecuniary relationships or transactions with the Company except payment for legal services provided by Singhania & Partners (Firm) in which Mr. Sinor. suppliers and its employees. the average term of the members on the Board is reduced unreasonably. Mr. 4. V. the contribution and attendance record of the concerned Director should be considered. None of the Directors is a relative of a Whole-time Director or of an independent Director and is expected not to serve any independent or executive position in any company that is a direct competitor. no Director should hold directorships in more than ten indian public limited companies. if eligible. As per the Articles of Association of the Company. the Board comprises of four independent Directors. Rama Bijapurkar and Dr. Audit committee Member. Audit committee Member. Audit committee Member. Audit committee chairman. Investor Grievance Committee chairman. The Board has adopted a retirement policy for its members.Ready for the next level. Non-whole-time Directors do not have any term but retire by rotation as per the law. Audit committee Member. Audit committee Member. whole-time Directors are appointed by the shareholders for a maximum period of five years at one time. Audit committee chairman. every Director informs the Company about the committee positions he/she occupies in other companies and notifies the changes as and when they take place. Memberships of other boards: Independent Directors are not expected to serve on the boards of competing companies. Audit committee committee Memberships* chairman. Lakshmi Cement Limited supreme industries Limited L&T Infrastructure Finance company Limited Grasim Bhiwani Textiles Limited Lakshmi Precision screws Limited L&T Finance Holdings Limited Maxx Mobile Communications Limited Hn sinor 3i infotech Limited icici Venture funds Management company Limited icici Lombard General insurance company Limited Tata Investment Corporation Limited tata capital Limited tata Motors finance Limited themis Medicare Limited sahara india financial corporation Limited Zoroastrian Co-operative Bank Limited Member.K. Audit committee - 39 . but are eligible for re-appointment upon completion of their term. Audit committee Member. which is the age of superannuation for the employees of the company. The maximum age of retirement of Whole-time Directors is 58 years. Succession policy: The Board constantly evaluates the contribution of its members and recommends to shareholders their reappointment periodically as per the statute. the details of other directorships held by the company’s Directors in public limited companies are given below: name of the Director Memberships on other Boards BV Bhargava Excel Crop Care Limited Grasim industries Limited icici Lombard General insurance company Limited J. Furthermore. No Director of the Company is a member of more than ten committees or act as chairman of more than five committees across all Indian public limited companies in which he/she is a Director. Audit committee chairman. Ltd committee Memberships* Member.000 40 . Details of Shareholdings of Directors as on December 31. Audit committee - * Memberships/Chairmanships in Audit Committee and Shareholders’/Investors’ Grievance Committee is considered. UK CRISIL Irevna Poland Sp. of shares held 16.statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance name of the Director Memberships on other Boards Rama Bijapurkar crisiL risk and infrastructure solutions Limited Axis Bank Limited Mahindra Holidays & Resorts India Limited Mahindra and Mahindra financial Services Limited icici Prudential Life insurance company Limited nachiket Mor Deven Sharma thomas schiller David Pearce crisiL risk and infrastructure solutions Limited crisiL risk and infrastructure solutions Limited Ravinder Singhania crisiL risk and infrastructure (Alternate Director) solutions Limited Unitech Limited Assets care enterprise Limited Roopa Kudva India Index Services & Products Limited CRISIL Credit Information Services Limited Irevna LLC. Alternate Director Roopa Kudva. Audit committee Member. US Irevna Limited.o. 2010 name of the Director BV Bhargava Hn sinor Rama Bijapurkar nachiket Mor Deven Sharma thomas schiller David Pearce Ravinder Singhania. MD & CEO no. Z.o CRISIL Irevna Information technology (Hangzhou) co. Ready for the next level. Responsibilities: The Board looks at strategic planning and policy formulation. The Board meets at least once in every quarter to review the Company’s operations and the maximum time gap between any two meetings is not more than four months. During the year ended December 31, 2010, the Board met six times—on February 18, April 16, July 22, September 9, October 18, and December 20. Most Board meetings were well-attended as shown below. The agenda of board meetings is sent to all the Directors well in advance and contains all the relevant information. The Company has an executive committee comprising the Managing Director and a team of senior management personnel with proper demarcation of responsibilities and authority. the Managing Director is responsible for corporate strategy, planning, external contacts and Board matters. The senior management personnel heading respective divisions are responsible for all day-to-day operationsrelated issues, profitability, productivity, recruitment and employee retention for their divisions. Mr. Raman Uberoi heads the domestic ratings business, Mr. GV Mani heads the global research and analytics business, Mr. Mukesh Agarwal heads the research business, and Mr. Arun Panicker oversees operations. Mr. M Ramsekhar has recently joined as CEO for CRISIL Risk & Infrastructure Solutions Ltd. (CRIS) and heads the infrastructure advisory and risk solutions business, which is conducted by a wholly owned subsidiary. name of the Directors no. of Board meetings held BV Bhargava Hn sinor Rama Bijapurkar nachiket Mor Deven Sharma thomas schiller David Pearce Roopa Kudva 6 6 6 6 6 6 6 6 no. of Board meetings attended 6 5 5 4 3# 5 4 6 Last Annual General Meeting attendance Yes Yes Yes Yes Yes Yes Yes Yes # In addition to the three Board meetings attended in person, Mr. Deven Sharma had attended the other three board meetings through tele-conference. There were no personal transactions by the directors involving a conflict of interest with the Company. the company has a code of ethics and Personal trading Policy for Directors and employees. the code of Ethics contains policies on confidentiality, gifts and favours, and false and misleading information or disclosures. the Personal trading Policy contains regulations, policies, procedures and restrictions relating to personal investments by the Directors and employees. The policy also prohibits trading in securities of any foreign or Indian listed company on the basis of unpublished price-sensitive information. Remuneration policy: 1) Remuneration to non-whole-time directors: non-whole-time directors are paid sitting fees for each meeting of the Board or its committee attended by them and are also eligible for commissions. the commission payable to each non-whole-time Directors is limited to a fixed sum per year as determined by the Board, and is revised from time to time, depending on individual contribution, the Company’s performance, and the prevailing norms. The members of the company at the meeting held on April 27, 2007 had authorised payment of commission to the non-whole-time directors up to 3 per cent of the net profits of the Company determined in 41 statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance accordance with the provisions of Sections 198, 349 and 350 of the Companies Act, 1956, subject to the approval of the Central Government. The Company has received the approval of the Central Government to pay remuneration not exceeding 3 per cent of the net profits to the non-whole-time directors for a period of five years with effect from January 01, 2008. 2) Whole-time Directors and other employees of the Company: the remuneration and reward structure for whole-time Directors and employees comprises two broad components—short-term remuneration and long-term rewards. The Compensation Committee, comprising two independent directors, determines the remuneration of whole-time Directors and determines guidelines for remuneration payable to the employees. These guidelines are as under: a) Annual remuneration: Annual remuneration refers to the annual compensation payable to whole-time Directors and employees of the Company. This comprises two parts—a fixed component, and a performancelinked variable component based on the extent of achievement of the individual’s objectives. Every employee signs a performance contract, which clearly articulates the key performance measures for that particular defined role. The performance-linked variable pay is directly linked to the performance on individual components of the performance contract. An employee’s variable pay is, therefore, directly dependent on key performance measures that represent the best interests of shareholders. The total remuneration is set at levels to attract, motivate, and retain high-calibre, and high potential personnel in a competitive global market. The total remuneration level is reset annually based on a comparison with the relevant peer group in the Indian market, established through an independent compensation survey. In addition to the above, incentives linked to the performance of the business unit are payable if the business unit performs better than expected. The remuneration levels and the performance contracts are finalised under the overall supervision, guidance, and approval of the compensation committee. b) Long-Term Rewards: Long-term rewards primarily comprise a long-term incentive plan, under which incentives are granted to eligible key employees based on their contribution to the profitability of the Company, relative position in the organisation, and length of service. The plan is supervised by the compensation committee. non-whole-time directors are not eligible for participation in the plan. sitting fees and commission paid to non-whole-time Directors (in rupees) name of Directors BV Bhargava Hn sinor Rama Bijapurkar nachiket Mor Deven Sharma thomas schiller David Pearce Ravinder Singhania (Alternate Director) totAL 10,20,000 12,283,380 13,303,380 sitting fees 320,000 160,000 120,000 60,000 180,000 180,000 commission 2,285,280 2,094,840 2,094,840 2,094,840 1,142,640 1,428,300 1,142,640 total 2,605,280 2,254,840 2,214,840 2,094,840 1,202,640 1,608,300 1,322,640 42 Ready for the next level. remuneration Paid to whole-time Director for the year ended December 31, 2010 (rupees Lakh) name salary Perquisites Variable Pay/Commission Provident Fund & Gratuity Appointment valid till notice period Dividend policy: CRISIL believes in maintaining a fair balance between cash retention and dividend distribution. Cash retention is required to finance acquisitions and future growth, and also as a means to meet any unforeseen contingency. CRISIL has also been conscious of the need to maintain stability in its dividend payout over the years. From 2008, CRISIL has commenced the practice of paying dividend on a quarterly basis. Roopa Kudva 130.02 4.90 106.70 4.68 July 27, 2012 3 months BoArD coMMittees the Board has constituted committees consisting of whole-time and non-whole-time Directors to focus on the critical functions of the company. Rating Committee: The Rating Committee comprises of one Non-whole-time Director, Mr. BV Bhargava (Chairman), and one Whole-time director Ms. Roopa Kudva and other senior personnel of the Ratings Division. The Committee takes decisions on new ratings and existing rating reviews, approves new products, criteria and parameters. the committee meets regularly. Audit Committee: The Audit Committee comprises of four non-executive directors who are well-versed with financial matters and corporate laws. Mr. HN Sinor is the Chairman of the Audit Committee. Mr. BV Bhargava, Dr. Nachiket Mor, and Mr. David Pearce are other members of the Audit Committee. The chairman of the Audit Committee remains present at the Annual General Meeting. The external and internal auditors of the Company are invited to attend the Audit Committee meetings to brief members. The Company Secretary is the secretary of the Committee. The Audit Committee met four times in 2010—on February 18, April 16, July 22, and october 18. Director Hn sinor BV Bhargava Dr. nachiket Mor David Pearce no. of committee meetings held 4 4 4 4 no. of committee meetings attended 3 4 4 4 the terms of reference for the Audit committee are as follows1. 2. Overseeing the financial reporting process to ensure fairness, sufficiency and credibility of financial statements Recommendation of the appointment and removal of statutory auditors and fixation of their remuneration and approving their payment for any other services rendered by them 43 Ms. April 16. powers and the terms of reference of the Audit committee are as stipulated in section 292A of the companies Act. Mr. 4. Investment Committee: The Investment Committee comprises of three non-executive Directors . Director BV Bhargava thomas schiller Roopa Kudva Compensation Committee: The Compensation Committee comprises of five non-executive directors—Mr. of committee meetings attended 1 1 1 44 . The Committee met four times in 2010—on February 18. Thomas Schiller. The Committee met once during the year—on February 18. Mr. 6. BV Bhargava (Chairman). of committee meetings held 1 1 1 1 no. and October 18. Roopa Kudva. 8. role. Mr. Review the functioning of the Whistle Blower mechanism the composition. Reviewing of the quarterly and annual financial statements before submission to the Board Reviewing the adequacy of the internal control systems Reviewing the adequacy of the internal audit functions. and reviews this activity at regular intervals. 1956 and clause 49 of the listing agreement. The Investment Committee lays down policy guidelines and procedures for investing the Company’s funds. within the limits laid down by the shareholders at the general meeting and in accordance with other applicable laws. and one executive director. 2010. of committee meetings attended 4 3 4 no. 5. the annual compensation of whole-time Directors is determined by the compensation committee within the limits set by the shareholders at the general meeting. 9. if any. Roopa Kudva. Thomas Schiller. The chairman of the compensation committee was present at the Annual General Meeting held on April 16. Deven Sharma. HN Sinor. Rama Bijapurkar. Ms. commission and other emoluments payable to whole-time directors and employees of the company. 7. and Mr. no. 2010. of committee meetings held 4 4 4 no. it also recommends to the Board. 2010. BV Bhargava (Chairman). The Committee considers and approves salary. discussing any significant findings and follow thereon Discussing on the nature and scope of audit with the statutory auditors Reviewing the financial and risk management policies Examination of reasons for substantial defaults. BV Bhargava (Chairman). Thomas Schiller. in payment to stakeholders Providing direction to the internal audit functions and monitors the quality of internal and statutory audit 10.Mr. Mr. procedures.statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance 3. the remuneration payable to non-whole-time directors. Mr. Director BV Bhargava thomas schiller David Pearce Roopa Kudva Investors Grievance Committee: The Investors Grievance Committee comprises of two non-executive directors. The Investment Committee met once during the year—on October 18. David Pearce. and one executive director. the committee ensures that a proper system of compensation exists to provide performance-based compensation to all employees of the Company. Mr. Ms. July 22. The Committee periodically reviews the status of investor grievances and redressal of the same. dematerialised capital. of committee meetings held 1 1 1 1# - no. The Allotment Committee comprises of two non-executive directors— Dr. Half-Yearly Newsletter: The Company sends a half-yearly newsletter giving details of the Company’s financial performance. Rama Bijapurkar—and one executive Director. and is also available on the Company’s website. Nachiket Mor (Chairman). 1956. relating to allotment of shares and to authorise officials of the Company to file forms and returns with regulatory authorities. 4. 3. 45 . 2010. Allotment Committee: the Allotment committee has been formed to complete the formalities prescribed under the companies Act. of committee meetings attended 1 1 1 - * Mr Hn sinor has been appointed member of the compensation committee with effect from December 20.Ready for the next level. # Mr. sHAre HoLDers Means of Communication: 1. Quarter and annual financial results are published in the leading national and regional newspapers. Shrikant Dev. the Management Discussion and Analysis report form a part of the annual report. News releases. and Ms. the names of companies in which he/she holds directorship. A secretarial audit is conducted by an independent practising company secretary on quarterly basis. the Board has authorised Mr. Ms. members are provided a brief resume of the Director. and displayed on the company’s website. Grievance Redressal: The Board has appointed an Investor Grievance Committee to review and redress complaints received from shareholders. and membership of committees of the Board. to confirm reconciliation of the issued and listed capital. The Committee meets periodically to consider the status of the investor grievances received and redressed along with the ageing schedules of pending complaints. to approve the transfer and transmission of shares. 2. Deven Sharma attended the committee meeting by tele-conference. including a summary of significant events in the last six months to shareholders. Roopa Kudva. In case of appointment or re-appointment of a Director. The Auditors’ Certificate of Corporate Governance is annexed with the Directors’ report and will be sent to the stock exchange at the time of filing the annual returns of the Company. the nature of his/her expertise in specific functional areas. The annual report is circulated to all members. press releases and presentations made to investors and analysts are displayed on the company’s website. and status of the register of members. Company Secretary. No Allotment committee meeting was held during the year as no shares were allotted during the year. Director BV Bhargava Rama Bijapurkar thomas schiller Deven Sharma Hn sinor* no. 2010 at 3. Next to Sachivalaya Gymkhana. twenty third Annual General Meeting April 16. 1956 and seBi (employee stock option scheme and employee stock Purchase scheme) Guidelines 1999 4. 1956 for alteration of Articles of Association special resolution under section 77A of the companies Act.30 pm Venue Babasaheb Dahanukar Hall. Mumbai 400 021. 2011 special resolution under section 31 of the companies Act. Jagannath Bhosale Marg. Gen. which lays down the businesses required to be passed by postal ballot. 2010 february 4. Yashwantrao Chavan Pratishthan. 4th floor. 1956 and seBi (employee stock option scheme and employee stock Purchase scheme) Guidelines 1999 Description 46 . Mumbai – 400001. Yashwantrao Chavan Pratishthan.statutory reports Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance General Body Meetings: The location. 2008 at 3. 3. 4th floor. Next to Sachivalaya Gymkhana.30 pm Rangaswar Hall. Maharashtra chamber of Commerce. 2010 october 18. Industry & Agriculture. 2. Mumbai 400 021. 1956 for the purchase of its own shares Special Resolution for issue and offer of Equity Shares of the company to employees and whole-time Director(s) of the Company under section 81(1A) and other applicable provisions of the companies Act. no 1. february 4. twenty second Annual General Meeting April 28.30 pm Rangaswar Hall. Jagannath Bhosale Marg. 2009 at 3. time and venue of the last three Annual General Meetings were as under: nature of Meeting twenty first Annual General Meeting Date and time April 23. oricon House. Gen. Date of Declaration of Postal Ballot result october 18. postal Ballot System: The Central Government has notified the Companies (Passing of Resolution by Postal Ballot) Rules 2001. 2011 Special Resolution for issue and offer of Equity Shares of the company to employees and whole-time Director(s) of the subsidiary companies of the company under section 81(1A) and other applicable provisions of the Companies Act. the company has passed the following resolutions by postal ballot for the period from the date of the last Annual General Meeting till the date of this report: sr. no special resolutions were passed at the last three general body meetings. fort. having unqualified financial statements. transactions of the company of a material nature with its promoters. The Company has complied with all the mandatory requirements of clause 49 of the Listing Agreement.Ready for the next level. and regulations. whereby employees are free to report violations of laws. that may have a potential conflict with the interests of the company at large. the same is available on the website of the Company. 47 . there has been no instance of employees acting under this policy. Disclosures: During the year. Other related-party transactions are mentioned in the notes to the accounts. having a whistle-blower policy and also has a mechanism for evaluating non-executive board members. The Company has also complied with the non-mandatory requirements relating to publication of half-yearly results. or unethical conduct to the Audit committee. or any statutory authority on any matter related to the capital markets during the last three years. Whistle-Blower policy: The Company has a Whistle-Blower Policy. there was no non-compliance by the company and no penalties or strictures were imposed on the company by the Stock Exchange or SEBI. the Directors or the management. rules. there were no material related-party transactions i. CRISIL Code of Conduct for Directors and Senior Management: the Board of Directors of crisiL has adopted the code of conduct for senior Management. their subsidiaries or relatives etc.e. statutory reports General Information for Members GenerAL inforMAtion for MeMBeRS 1. Hyderabad –500 081 Phone no. 2011 tuesday. 4. 5th Floor. Rangaswar Hall.m. Jagannath Bhosale Marg Next to Sachivalaya Gymkhana Mumbai – 400021 : friday. 25 per share having nominal value of Rs. Mumbai . No. The Company has paid listing fees at both the exchanges and has complied with the listing requirements. Dalal Street. C/1. National Stock Exchange of India Limited (NSE) CRISIL Bombay Stock Exchange Limited (BSE) .17 to 24.30 p. shareholding pattern.400 001.500092. Mumbai – 400 051. 5.crisil. Madhapur. 2011 (both days inclusive) : May 03. Calendar for Financial Reporting for the first Quarter ending March 31. Bandra-Kurla Complex. Gen. 3. Bandra (e). near image Hospital Vittalrao nagar. 2011 at 3. Plot no. Stock Code 8. G Block. 2011 Wednesday. 2011 Second Quarter ending June 30.com 2. 4th floor. 040-23420814 7. annual report etc. Yashwantrao Chavan Pratishthan. Avenue – 4. 2012 Business standard and sakal www. Annual General Meeting Date and time Venue : April 15. fort. 2011 newspaper where the results are published Site where the financial results. 2011 to thursday. March 16. 2011 (if dividend payment is approved at the Annual General Meeting). ISIN Number: INE007A01017 : Karvy Computershare private Limited Karvy House. 6. are uploaded proposed Final Dividend Dates of Book Closure Dividend payment Date Listing Details : Rs. october 18. 2011 Year ending December 31. April 15. 2011 third Quarter ending september 30. 2011 end of february. Registrars and Share transfer Agents 48 . 21. : wednesday. July 20. March 17. Plot No. 040-23420818-828 Fax. 10 each. Bombay Stock exchange Limited (BSe) Jeejeebhoy Towers. : The shares of the Company are listed on: National Stock exchange of India Limited (NSe) Exchange Plaza. Phone: 022-33423000 Fax: 022-33423810 : currently. Powai. investors may approach Karvy Computershare Private Limited or Mr. Shareholding pattern as on December 31. 2002.Ready for the next level.97 6. no. company secretary crisiL House.98 17. apart from eliminating loss/damage of dividend warrants in transit and correspondence with the company on revalidation/issuance of duplicate dividend warrants.452 215. Depository System 11. Group Holding of the the McGraw-Hill companies a) Standard & Poor’s International LLC b) S&P India LLC Individuals fiis Mutual Funds/UTI insurance companies Financial Institutions/Banks Bodies corporate Directors nris totAL 600. Shrikant Dev. shrikant Dev. : registrars and share transfer Agents or to Mr.000 16. Compliance Officer 10. : The members are requested to furnish their PAN which will help us to strengthen compliance with KYc norms and provisions of Prevention of Money Laundering Act.23 0. 6. Compliance Officer. Compliance Officer.com 14. for transfer of shares in physical form. 1.59 10.011 124.576 16.69 3. Members are requested to furnish complete details of their bank accounts including the Micr codes of their banks to their DPs. 9.136 474. : investors@crisil. : Members are requested to notify their Depository Participant (DP) about the changes in the bank details.265 566. Central Avenue. 3.08 7. Bank Details for electronic Shareholding 13. Mumbai – 400076. Furnish Copies of permanent Account Number (pAN) : Mr.23 100.366 7.948 1. of shares held % Holding 2.03 1. 9.00 category no. electronic Clearing Service (eCS) 12.096. at the above mentioned address.45 43. 7. 49 . Shrikant Dev. Hiranandani Business Park. 2010 sr.844 8.58% of the company’s share capital is held in dematerialised form. Investor Complaints to be addressed to email ID of Grievance Redressal Division 15. seBi has made it mandatory to the transferee to submit a copy of PAn card to the company . 4.75 0.248. the Company encourages members to avail of this facility as ECS provides adequate protection against fraudulent interception and encashment of dividend warrants. at the addresses given above. 8. 5.090 715. for any assistance in converting physical shares in electronic form. 99.000 3. The Company has extended the ECS facility to shareholders to enable them to receive dividend through electronic mode in their bank account.120. 46 2.00 5249.00 5565.24 1. no 1.00 5555.70 5600.50 4873.00 6265. LP Life insurance corporation of india Franklin Templeton Investment Funds Bright Star Investments Pvt Ltd Variable insurance Products fund iii – Mid cap wasatch fund Tata Trustee Co.10 6300. NSe Month January february March April May June July August september october November December High (rupees) Low (rupees) 5700.00 5655.390 171. Group Holding of the the McGraw-Hill companies a) Standard & Poor’s International LLC b) S&P India LLC Jhunjhunwala Rakesh & Rekha General insurance corporation of india Unit trust of india state Bank of india Acacia Partners. sr.75 4.98 7.00 6000.00 5275. of shares held % Holding 2. Ltd.280 74.00 5931.00 5391.00 6999.232 94.45 4821.45 43.09 1.00 5571.00 5649.948 550.47 name of the shareholder no.00 5700.00 5252.413 154.00 5910. 12. 3.00 6343.05 50 .00 6090.02 83.00 5880.17 1.00 5704. 7.000 3.00 5376.00 4290.110 72. LP/Acacia Institutional Partners.00 4450.923.039 245.238 88. 2010 nature of correspondence Transfer/Transposition/Transmission Dematerialisation/Remat/ECS/other Request registration of Power of Attorney Issue of duplicate share certificate/correction/process queries Non-receipt of dividend warrant Issue of duplicate drafts in lieu of warrants/revalidation of warrants incorporation of change of address incorporation of bank mandate totAL Received 13 49 5 50 46 10 3 176 Resolved 13 49 5 50 46 10 3 176 Pending - price movements of the company’s shares on National Stock exchange of India Ltd and Bombay Stock exchange Limited for the period from January to December 2010.00 5721.000 303.00 5784.statutory reports General Information for Members Members holding more than 1% of the paid-up share capital as on December 31. 6.688 171. Status report on number of shareholder requests/complaints received and resolved by the Company during the year ended December 31. Pvt.33 1.535 8.00 4700.04 1.55 6150.10 5300.00 6048.00 6880.10 6050.00 6350. 9. 4. 2010. 5.122 5.00 6300.82 2.30 6066. 13.00 6100.42 2.820 200.00 5228. 11. 8.00 4601.120.42 2.05 5900. 10.00 5255.60 Month January february March April May June July August september october November December BSe High (rupees) Low (rupees) 5300.255 77.90 5640.00 5610.A/c Tata Mutual Fund Templeton Mutual Fund A/c-Franklin India totAL 600.00 5300.30 5271.27 3. to apply for the winding-up of the company. v/s S&p CNX 500. To apply to the Company Law Board to investigate the affairs of the Company. www. S&p CNX Nifty 6500 6000 Index Value 5500 5000 4500 4000 04-01-2010 13-01-2010 22-01-2010 03-02-2010 11-02-2010 23-02-2010 05-03-2010 16-03-2010 26-03-2010 07-04-2010 19-04-2010 28-04-2010 07-05-2010 18-05-2010 27-05-2010 07-06-2010 16-06-2010 25-06-2010 06-07-2010 15-07-2010 26-07-2010 04-08-2010 13-08-2010 24-08-2010 02-09-2010 14-09-2010 23-09-2010 04-10-2010 13-10-2010 22-10-2010 02-11-2010 11-11-2010 23-11-2010 02-12-2010 13-12-2010 23-12-2010 trading date crisiL Ltd. 51 . To receive corporate benefits like rights. To requisition an Extraordinary General Meeting. Other rights are as specified in the Memorandum and Articles of Association available on the website. To receive the residual proceeds. bonus etc. Balance Sheet and Profit and Loss Account and the Auditor’s report.crisil. in due time. to apply to the company Law Board to call or direct the Annual General Meeting. CRISIL Ltd. To receive copies of the Annual Report. once approved.Ready for the next level. To participate and vote in General Meetings either personally or through proxies. The above-mentioned rights may not necessarily be absolute. S&P CNX 500 S&P CNX Nifty Shareholders Rights: A shareholder in a Company enjoys certain rights. To proceed against the Company by way of civil or criminal proceedings. to demand a poll on any resolution. on allotment or transfer as the case may be. an individual shareholder also enjoys the following rights as a group: to appoint the Directors and Auditors of the company. To inspect the minute books of the General Meetings and to receive copies thereof. To apply to the Company Law Board for relief in cases of oppression and/or mismanagement. To receive dividends in due time once approved in General Meetings. Apart from the above rights.com. which are as follows: To receive share certificates. .....147.....147.................865...............42 Market capitalisation 425............... the end of one journey marks the beginning of another in a continuous pursuit of holistic excellence.... 85 consolidated Balance sheet .71 Revenue 70....558............147........147...42 PBt 26.....68 lakh.. Dividend PBt 26............. 84 Revenue 70....................733 Revenue 70....42 lakh..865.... 2................. Dividend 2.....23 lakh.42 PBt 26... Dividend 2...........147.........69 lakh..................733 consolidated financial statements Auditors’ report on consolidated statements.....000 % net worth 41..................558...71 Revenue 70 70....42 PBt 26....... standalone financial statements Auditors’ report ......... PAt 20......000 % 52 .865..865.....147....... 53 Balance sheet ....42 lakh.........73 Revenue 70.. Revenue 70.558...... 70................................... 57 cash flow statement .......................147. Dividend 2.733..............69 lakh......68 lakh......... 56 Profit and Loss Account . 58 schedules forming part of Accounts .865..147....42 PBt 26......... ePs 285...........865...733 ePs 285.69 lakh. PAt 20 70.... 88 Schedules annexed to and forming part of the consolidated Accounts .......42 lakh....42 lakh..........339 lakh....147.................... 87 consolidated cash flow statement . 60 Additional information ...42 PBt 26........000 % PAt 20...... ePs 285........... 147 PAt 20...At CRISIL........71 Revenue 70.........69 lakh............................. net worth 41.71 Revenue 70......69 lakh..........68 lakh.... 90 PAt 20.........147...... PAt 20.....733 net worth 41........ 86 Consolidated Profit and Loss Account........69 lakh.. ePs 285.......... Revenue 70...................000 % PAt 20......... 1956. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies act. Place: Mumbai Date: February 14. a statement on the matters specified in paragraphs 4 and 5 of the said order. 4. in the Annexure. in our opinion and to the best of our information and according to the explanations given to us. 1956. vi. we report that none of the directors is disqualified as on December 31. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: in the case of the Balance sheet. 2. auditors’ report to the Members of CrISIL Limited 1. 2003 (as amended) [‘the order’] issued by the Central Government of india in terms of sub-section (4a) of Section 227 of the Companies Act. of the cash flows for the year ended on that date. those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In our opinion.R. We believe that our audit provides a reasonable basis for our opinion. 2010 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies act. 53 . 2011 For S. In our opinion. 2010. iii. of the profit for the year ended on that date. BATLIBOI & Co. and taken on record by the Board of Directors. Firm registration number: 301003E Chartered accountants per Shrawan Jalan Partner Membership No. on a test basis. The Balance Sheet. 3. as required by the Companies (auditor’s report) order. the said accounts give the information required by the Companies act. We conducted our audit in accordance with auditing standards generally accepted in india.: 102102 c) b) a) v. the Balance Sheet. ii. which to the best of our knowledge and belief were necessary for the purposes of our audit. we report that: i. We have audited the attached Balance sheet of CrisiL Limited (‘the Company’) as at december 31. in the case of the Profit and Loss Account. an audit also includes assessing the accounting principles used and significant estimates made by management. as on December 31. evidence supporting the amounts and disclosures in the financial statements. 2010 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account. On the basis of the written representations received from the directors. our responsibility is to express an opinion on these financial statements based on our audit. as well as evaluating the overall financial statement presentation. 1956. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. These financial statements are the responsibility of the Company’s management. 2010. we enclose. iv. an audit includes examining. and in the case of Cash Flow Statement. 1956.Ready for the next level. of the state of affairs of the Company as at december 31. We have obtained all the information and explanations. Further to our comments in the Annexure referred to above. (vii) In our opinion. income-tax. customs duty. (iv) in our opinion and according to the information and explanations given to us. cess and other material undisputed statutory dues were outstanding. investor education and protection fund. we have not observed any continuing failure to correct major weakness in internal control system of the Company. accordingly. sales-tax. for the purchase of fixed assets and for the sale of services.standalone financial statements Auditors’ report Balance Sheet Profit and Loss Account ANNExuRE REFERRED TO IN PARAgRAPh 3 OF OuR REPORT OF EvEN DATE Re: CRISIL Limited (i) (a) (b) The Company has maintained proper records showing full particulars. employees’ state insurance. in our opinion. hence adequacy of internal control pertaining to purchase and sale of inventory are not commented upon. for a period of more than six months from the date they became payable. there is an adequate internal control system commensurate with the size of the Company and the nature of its business. according to the information and explanations given to us. wealth-tax. During the course of our audit. since the Central government has till date not prescribed the amount of cess payable under section 441 A of the Companies Act. excise duty. including quantitative details and situation of fixed assets. All fixed assets were physically verified by the management in accordance with a planned programme of verifying them once in three years which. There was no substantial disposal of fixed assets during the year. 1956 and therefore the provisions of clause iii (c) to iii (g) are not applicable to the Company and hence not commented upon. service tax and cess and other material statutory dues have been regularly deposited with the appropriate authorities. 1956 for the products of the Company. (vi) the Company has not accepted any deposits from the public. we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. or employees’ state insurance. The provisions relating to custom duty and excise duty are not applicable to the Company. the Central government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies act. (v) According to the information and explanations provided by the management. at the year end. we are of the opinion that there are no contracts or arrangements referred to in section 301 of the act that need to be entered into the register maintained under section 301. sales-tax. (viii) To the best of our knowledge and as explained. wealth-tax. income-tax. no undisputed amounts payable in respect of provident fund. (c) (ii) (ii) (iii) the Company is engaged in the business of providing rating and research services and therefore the provisions of clause of paragraph 4 of the said order are not applicable to the Company and hence not commented upon. 1956. No material discrepancies were noticed on such verification. The Company is providing rating and research services and do not have inventory. investor education and protection fund. The Company has not granted/taken any loan to/from parties covered under section 301 of the Companies act. (ix) (a) undisputed statutory dues including provident fund. is reasonable having regard to the size of the Company and the nature of its assets. the Company has an internal audit system commensurate with the size and nature of its business. (b) 54 . Further. During the course of our audit. service tax. the provisions of clause (v) (b) of paragraph 4 of the said order are not applicable to the Company and hence not commented upon. no major weakness has been noticed in the internal control system in respect of these areas. 2003 – 04 a.Ready for the next level. For S. securities. (xx) the Company has not raised any money by public issues during the year.256 7. (c) According to the records of the Company.: 102102 55 . debentures and other securities. (xix) the Company did not have any outstanding debentures during the year.534. Comm. are as follows: Name of the statute income tax act.537 5.Y.053.735 2. (xvi) The Company has not taken any term loans during the year.Y. 1961 Nature of dues income tax demands raised against the Company amount (rs) 6. (xiv) in our opinion. 2004 – 05 a.968. The Company has not taken any loans from financial institution. 1956 sales tax demands raised on the company 4. the Company has not given any guarantee for loans taken by others from bank or financial institutions.069. (xviii) the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies act. 2011 per Shrawan Jalan Partner Membership No. (xvii) according to the information and explanations given to us and on an overall examination of the balance sheet of the Company.846 Period to which the amount relates a.914 1. the dues outstanding of income-tax as well as sales tax on account of any dispute. 2001 – 02 a. Comm. of income tax (appeals) asst.Y.Y. the Company is not dealing in or trading in shares. debentures and other investments. Therefore. of income tax Comm.Y. of sales tax (appeals) asst. 2007 – 08 a. (xv) according to the information and explanations given to us.440 sales tax act. 2005 – 06 a. 1956. we report that no fraud on or by the Company has been noticed or reported during the course of our audit. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management. the Company has not granted loans and advances on the basis of security by way of pledge of shares. accordingly. (xiii) In our opinion.653. 2002 – 03 a. BATLIBOI & Co. we report that no funds raised on short-term basis have been used for long-term investment.227 276. the provisions of clause 4(xiv) of the said order are not applicable to the Company.600 5.743.Y. 2006 – 07 a. bank and not issued any debentures. 2005 – 06 Forum where dispute is pending high Court high Court high Court high Court deputy Comm. Firm registration number: 301003E Chartered accountants Place: Mumbai Date: February 14.Y.R. 2004 – 05 a. of income tax deputy Comm.Y. according to the information and explanations given to us and based on the documents and records produced to us. the Company is not a chit fund or a nidhi / mutual benefit fund / society. the provisions of clause 4(xiii) of the order are not applicable to the Company.Y.619. of sales tax (appeals) (x) (xi) (xii) The Company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.429 986. 682.189.440 3.674 87.724.840 782.374 1.236 998.055.199 1.397 APPLICATION OF FuNDS Fixed Assets gross Block Less: Accumulated Depreciation/Amortization Net Block Capital Work-In-Progress (including Capital Advances) the schedules referred to above and notes to accounts form an integral part of the Balance sheet as per our report of even date.763.008. Firm Registration No.568 1.712.554.755.078.360.131.768.817 999.395.086.273 109.152.456 1.670 74.835 3.345.869.680. 2011 roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company secretary Mumbai.814. 2010 (rupees) Particulars schedule december 31.263.399.469.400 d 1.328.625.908.057.396.089.Schedule P) Current Assets. February 14.175.895.: 301003E Chartered accountants per Shrawan Jalan Partner Membership No.136.868 1.934.329. 2009 SOuRCES OF FuNDS Shareholders’ Funds share Capital reserves and surplus totAL a B 70.275 1.283.625. v.506 636.316.050.888 428.977 1.122.504 72.950.standalone financial statements auditors’ report Balance Sheet Profit and Loss Account BALANCE Sheet as at december 31.675 494.857 1.743 1.055.299.048 618.397 4.978.779 3.988.N. 2011 h.453.R. BATLIBOI & CO.000 4.087.: 102102 Mumbai.013.968.829 121.397 E F G h 964.219.088.332.773. Bhargava director For and on behalf of the Board of Directors of CRISIL Limited 56 .050.555 1.275 C 1.041. February 14.099.845 4. Sinor director Rama Bijapurkar director thomas schiller director B.671 Investments Deferred Tax Assets (Net) (Refer Note 6 . Loans And Advances sundry debtors Cash and Bank Balances Loans and advances other Current assets Less: CUrreNt LIABILItIeS AND proVISIoNS Current Liabilities Provisions Net Current Assets totAL Significant Accounting Policies and Notes to the Accounts P i J 1.554.576 3.032 694.181 604.263.698 350.122. 2010 december 31.102 2.090 775.854 829. For S.250.901. 050 694.033 2.023.N.120.298 474.444. BATLIBOI & CO.234.772 27.760 (33.08 7.654.735.984.269.517.862 1.657 1.819 2.264.290 532.109.000 177.644. 2011 Rama Bijapurkar director roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company secretary Mumbai.222.085.189.120.100 238.735.503.299 1.390.274.375. as per our report of even date.754.045.000 180.469) 532.625.179.716 3.415.796.093 INCOME income from operations other income totAL K L ExPENDITuRE Personnel Expenses Establishment Expenses Other Expenses depreciation Profit Before Tax tax expense (refer Note 4 .646 1.595.335 1.371.414 3.536.641.451 1.482 2.578 208.695) (88.903.303) 400.207.687 202.957.107 4.859 736.391.Nominal value of rs.989.894.421.371.592 6.766. February 14.043.100 1.989.786.61 7.343.335 271.000 722. net of tax (Refer Note 25.741.363.355.500.792.654.231.Schedule p) Current tax Fringe Benefit Tax Wealth tax Deferred Tax Benefit income tax of earlier years Profit After Tax and before prior period items Prior period expense.: 301003E Chartered accountants per Shrawan Jalan Partner Membership No. v. Bhargava director h.164.287.Schedule P) Profit After Tax Balance brought forward from previous year Profit Available for Appropriation Dividend interim Proposed Final Dividend totAL Dividend Tax on Interim and Proposed final dividend transfer to General reserve Balance carried to Balance sheet Basic and Diluted Earnings Per Share .519 416.438. Sinor director For and on behalf of the Board of Directors of CRISIL Limited 57 .506. Firm Registration No.274.416.701 2.: 102102 Mumbai.109.269.780 1.953 1.960 (20.337.186 2.301.450 228.308.516 3.231.418 565.000 Particulars schedule Year Ended december 31.000 3.491 138.544.225.854.918. PROFIT AND LOSS ACCoUNt for the year ended december 31.876 150.516 4.000 122.788.151.766. 2010 (rupees) Year Ended december 31.462 702.10 Number of Shares used in Computing Earnings Per Share (Refer Note 23-Schedule P) Significant Accounting Policies and Notes to the Accounts M N o P The schedules referred to above and notes to accounts form an integral part of the Profit and Loss Account.875. February 14. 2009 4.849 4.000 759.578 541.862 1. 2010 5. For S.R.646 195. 2011 thomas schiller director B.470 612.441.337.503.Ready for the next level. 388) (2.000.898.759.090 (103.809.971.460 88.683 (548.556) 1.905.301.062.697.837.000) 202.129.236) 4.188) 607.101.536 7.109) 318.732.355.111 57.612) (2.increase/(decrease) in sundry creditors .840) 1.962) 5.(increase)/decrease in advances .958 2.other investments dividend income from current investments Operating profit before working capital changes Movements in working capital .586.276) 1.701 28.790 Contd.292.040) 2.(A) (326.472.116 22.932.398.730.569. 2009 1.(increase)/decrease in sundry deposits .101) (355.(increase)/decrease in sundry debtors .472.980.491) 243.101.000.978 (125. 2010 Year Ended december 31.407) (7.262.197 (22.792.166 (100.467. a.(increase)/decrease in accrued revenue .239.092.603.721) (23. 2010 (rupees) Year Ended december 31.835 (96.765) 39.108.603) (3.651 (804.128.260.increase/(decrease) in fee received in advance .976) 46.230.142.568 36.694.252.160) (35.841) 950.693.779.711 (369.261.319.967.000) 1.Schedule P) unrealised Foreign exchange loss Loss / (Profit)on sale of fixed assets Profit on sale of investments Provision for bad debts interest on deposits Foreign Currency Translation Reserve interest on loan to subsidiary dividend income .570 39.176.574 2.921 (71.090.477.085.519 138.219.062.223.951 (11.880.016.414 32..182 11.979 (406.349) 1. CASh FLOW FROM OPERATINg ACTIvITIES : Profit before tax Adjustments for : depreciation Provision for leave encashment Provision for gratuity (Refer Note 25.517.687.051) (99.151 6.997.250) 602.standalone financial statements Cash Flow Statement schedules forming part of accounts additional information CASh FLOW StAteMeNt for the year ended december 31.350.702.487.415.372.816.903.835) (6.469.422.127 (93..277.532.500) (4.(increase)/decrease in loans .312) 81.625 (250.536 83.165) 49.356 (66.935.624.435 (755.055 (111.822) (2. CASh FLOW FROM INvESTINg ACTIvITIES : Purchase of fixed assets Proceeds from sale of fixed assets investments in mutual funds sale proceeds from investments in mutual funds Investment in fixed deposits Proceeds from fixed deposit maturity/renewal Payment made for acquisition of Pipal research analytics and information services india Private Limited Investment in National Commodity and Derivative Exchange Limited 58 .252 (865.taxes paid Net cash generated from operating activities .316.418 B.117.981) (3.increase/(decrease) in other liabilities Cash generated from operations .179. 982) (2.000 374.211. Bhargava director For and on behalf of the Board of Directors of CRISIL Limited 108.062.434) 534.735.568 193.000) (934.568 727.Closing balance Net Increase/(decrease) in Cash and Cash equivalents Components of Cash and Cash Equivalents as at * With banks on current account 59 . as per our report of even date.858. uK sale proceeds from investments in Gas strategies Group Limited interest on deposits dividend income .341) 727.840 (290.222. February 14.N.190 343.380) 58.433.347.347. 2011 h.732.860 3. Sinor director Rama Bijapurkar director thomas schiller director B.694. CASh FLOW FROM FINANCINg ACTIvITIES : dividend and dividend tax paid Payment towards Buy Back of Shares (Refer Note 23schedule P) interest on loan to subsidiary Loan (given) / repaid to Subsidiary (Net) Net cash generated from/(used in) financing activities . February 14.093.339 6.981.R.721 23.040 1.134.433) (927. For S.: 301003E Chartered accountants per Shrawan Jalan Partner Membership No.680.316.761.235. 2009 - C.835 (302.500 4.777.190 (144.034 (1.849 343.000.645.190 727.316.opening balance Cash and Cash Equivalents . BATLIBOI & CO.(C) Net Increase/(decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalents .other investments dividend income from current investments Net cash generated from/(used in) investing activities . 2011 roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company secretary Mumbai.849 *Cash and cash equivalent includes earmarked unpaid dividend amount (Refer Schedule F) Significant accounting policies and notes to the Accounts schedule P The schedules referred to above and notes to accounts form an integral part of the Cash flow statement. Firm Registration No.968.(B) 50.622 727.093.037) 3.Ready for the next level.968.190 534.: 102102 Mumbai.603. v.341) 343.502) (383. CASh FLOW StAteMeNt for the year ended december 31.875.043.024) 2.508.316.331) (796.849 (383. 2010 (rupees) Year Ended december 31.728.968. 2010 Sale proceeds from Investment in National Commodity and Derivative Exchange Limited investment in irevna Limited.316.932.472.760.189 Year Ended december 31.603 (10. 000) Equity Shares of Rs. The ultimate holding Company)] (Refer Note 23.Y.281.used towards buy back of equity shares (Refer Note 23.096.948) Equity Shares are held by S&P India. LLC (a whollyowned subsidiary of The Mcgraw-hill Companies.393) 1.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts (rupees) december 31.444.337.281. Schedule P) Less :used Towards Buy Back Of Equity Shares (Refer Note 23.560 122.274.000) Equity Shares of Rs.554. uSA and 3.013.228 25. 10.560) 1.Y.686. 3.071 - 60 .880.948 (P.699 195.835 1.890.107 2.071) 474.000. schedule P) totAL hedging Reserve Account Foreign Currency Translation Reserve totAL 1.000 (P. 600.120.000 SChEDuLE B: reserves and Surplus securities Premium account opening Balance Less:.111 474. Subscribed and Paid up: 7.000.968.699 4.000) Equity Shares are held by Standard & Poor's International LLC.000 100.968.086.440 72.513 150.Transfer on account of buy back of equity shares (Refer Note 23.890.232.052.000.217 (2. Inc.071 (474.000 (P.000.111 474.560 2.178.516 1.844 (P.250.071 122.028.890. schedule P) totAL Capital reserve Capital redemption reserve opening Balance Add:.397 (320.109.890.781. 2010 december 31.186 1. schedule P) totAL Profit And Loss Account General reserve opening Balance Add : Transferred From Profit And Loss Account Less :Transfer To Capital Redemption Reserve Account (Refer Note 23. 2009 SChEDuLE A: Share Capital Authorised Capital: 10. 10 each fully paid up [Of the above.232.120.337.281.548.10 each Issued. Schedule P) totAL 70.781.568.000 100.178..754.482 (1.388) 3.050.Y.355.Y.225.000 70. 7. 600.440 72.250. 676.807).453.059 95.562 68.264.578 upto January 1.578 54.842 8.936.459.265.130 18.610 108.565.901 75.008.087 28.706.950.726 131.101 300.160 Previous Year 1.381 41.453.277.402 388. 2009 Net Block deductions / Adjustments 24.115 12.240.070 vehicles 41.399.004 totAL 1.405.140 67.283.254 9.656.952 417.478 197. Refer Schedule h.506 89.647 159.957.090 1.420.074.869.479.414 31.550 998.654 2. 61 .701 61.999 9.033 79.406 29.675 604.856.988 497.639 89.800.515.633 Fixed Assets Gross Block at Cost As on January 1.399.084.636.426 203. 2010 additions SChEDuLES Buildings (refer note 185.675 202.794.875.554.697 13.785.167 Note:Adjustment with respect to building.537.792.020.792.535.830 71.057.154 436.071.266 89.183 480.961 118.956 1.271.261.888.771 15.340 604.008.676.703.648 96.940.509.853 775.354 13.578.199.572.377.771 100.003 317.869.988. 2010 161. 2010 as on december 31.864 7.041 96.635.181 728. Ready for the next level.314 138.874.605 494.858 71.024.698 128.412.347.599.660.61.679.303.773.099.750. 2010 as on december 31.347 65.854 494.073 90.165 note below) Computers 406.343.762 13.067 annexed to and forming part of the accounts Leasehold improvements 158. furniture and office equipment are on account of certain premises being classified as held for sale in the current year (Previous Year net written down value Rs.140.854 (Refer note below) Office Equipments (Refer 170.945.380 1.680.506 69.SChEDuLE C: (rupees) Accumulated Depreciation/Amortization as on december 31.111 25.112.099.111.814.215 11.181 527.469.018.832 - below) Furniture and Fixtures 135.186 575.236 29. 2010 For the Year deductions / Adjustments upto december 31.251 134.903 614.938.554.085.594. Sold 40.048. 49.239 695. 2009 SChEDuLE D: Investments A.Y.000 36. fully paid up. of £1 each.10 each.Y.057.{A} 13.018 (P.000) Equity Shares of india index services and Products Limited of rs. Long term (Unquoted .875.051 - 56.625.018) Equity Shares of CrisiL irevna argentina of ars 1 each.000 10. 2009 december 31.900 49.000 share during the year & Sold 2.Y. 2010 december 31.600.000. fully paid up Less: Provision for diminution in value of investment Nil (P.940.000 (P.642.642. 637.000 (P. 2010 december 31.970 49.Y.At Cost) investment in subsidiaries (Companies under same management) 49.000 equity shares of £1 each. 3.000) Equity Shares of Caribbean information and Credit rating agency of us$1 each.000 shares during the year) 300.829 814.900) Equity Shares of CRISIL Risk and Infrastructure Solutions Limited of re.000 Equity shares during the year total Long term (At Cost) .Y.056.Y. 1 each.859 500.fully paid up.000) Equity Shares of CrisiL Credit information services Limited of rs.501.Y.000 Equity Shares of Irevna Limited.369.000 (P. fully paid up 1.704.642.000 500.369. uK.000 Equity Shares (P. during the current year) 50.001 each) (Purchase of 2.642.10 each. fully paid up (P. fully paid up 704.900 (P. Nil) of Pipal research analytics and information services india Private Limited of rs.Y 8.10 each.500 6.999.900 840.292. 50.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts (rupees) december 31.075.999.000 (P.499) 1 16. 40.668 10.383.000) Equity Shares of National Commodity and Derivative Exchange Limited of rs. fully paid up 2.668 111. other investments 637. fully paid up 10.Y.999. fully paid up (Purchase 900.499) 1 - (13. 300.970 6.10 each.144.000) Equity Shares of Gas strategies Group Limited of £1 each.250.185.438 1.999.501.000 Equity Shares of £ 0.000 13.000.500 (13.836 62 . 2009 december 31.dividend reinvestment (sold 15. Current Investments (At Cost or Market Value.Dividend reinvestment (sold 12.Y.578 units during the current year) Nil units (P.1 Year Plan d cumulative.269 units during the current year) Nil units (P.10 each of iCiCi Prudential institutional Liquid Plan .Y.010.057.175.933 - 151.Y.294.000.065 units) of rs.352 units) of Rs.727.099.Ready for the next level.Appreciation (sold 62.294.Y.Institutional Plan (Sold 5.000 - 151.10 each of Tata Liquid Super high Investment Fund .dividend reinvestment (sold 3.578 units) of Rs.829 100.430 units) of Rs.12. whichever is lower) * Investments In Mutual Funds (unquoted) Nil units (P. SChEDuLES annexed to and forming part of the accounts (rupees) december 31.15.352 units during the current year) Nil units (P.065 units during the current year) Nil units (P.108.255 63 .10 each of Principal Cash Management Fund-Liquid Option institutional Premium Plan .dividend reinvestment (sold 148.771 100. 2010 december 31.Y. 2009 SChEDuLE D: (Contd) Investments B.3.706 - 150.000. (Purchased 1.000.838 1.000. 62.814.510.269 units) of Rs.000.901.936 units) of rs. 2010 december 31.5.998 - 100.000 1.000 units during the current year) total Investments in Mutual Funds {B} total Investments {A} + {B} *Aggregate market value of Company’s investment in unquoted Mutual Funds 100.000 units of Rs 10 Each ICICI Prudential FMP Series 53 .674 1.000 999.Y.10 Each of uTI Liquid Cash Plan institutional .10 each of Sundaram BNP Paribas Money Fund .000 95.083.10 each hDFC Liquid Fund Premium Plan .897.151.946 - 351.430 units during the current year) Investments In Mutual Funds (Quoted) 1.936 units during the current year) Nil units (P.474.960.108.148.359.474.343.510. 393 (P.871.991 7.048 335.unsecured.unsecured.300.888 54.321 723.000 618.Schedule P) totAL 20.unsecured.332) 639.273 SChEDuLE h: other Current Assets Interest Accrued on Fixed Deposits with Banks accrued revenue interest accrued on Loan to irevna Limited. 2009 SChEDuLE E: Sundry Debtors debts outstanding for a period exceeding six months .458 94.893 SChEDuLE F: Cash and Bank Balances Balances with Scheduled Banks on Current accounts on deposit accounts on unpaid dividend accounts Deposit includes Fixed Deposits with Banks Rs.332 55.379.189.080 5.189.332.586) marked as lien for guarantees issued by Banks on behalf of the Company.582.Schedule P) totAL 964.987 453.214 SChEDuLE g: Loans and Advances (unsecured.743 694. uK Forward Contract Receivable assets held for sale (refer note on schedule C) totAL 26.050.140 74.102 64 .589.260.885.476 (38.468. 2010 december 31.360.491 (37.976 618.265.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts (rupees) december 31.217 16. Rs.366.733. Considered good Less : Provision for Doubtful Debts (Refer Note 12 .858 3.670 20.128 372.888.840 1.672 334.977 925.994. Considered doubtful other debts .978.696 17.807.500. Considered Good) Loans to staff Advance Recoverable In Cash or Kind for value to be Received Advance Tax (Net of provision) sundry deposits Loan to Subsidiary (Refer Note 13 .893) 38.219. Considered good .885.735.132 32.974.982 782.486 37.528 875.597 42.548.544.025. (Refer Note 3 .807 109.926.895.9.345.312 25.Y.046.318.913.Schedule P) totAL 1.260.779 5.9.043.113.050.950.724.389.267 38.698 61.982.964.030 1. 325 3.427 5.283.219 132. small and medium enterprises others Fees received in advance unclaimed Dividend (to be credited to Investor Education & Protection Fund.132 555.Schedule P) totAL 177.027 1.698 604.467.797 164.960.568 180.Ready for the next level.988.900.678 1.089.214 SChEDuLE J: provisions Proposed dividend Corporate dividend tax thereon Provision for Tax (Net of Advance Tax) Provision for Leave Encashment Provision for gratuity (Refer Note 25.421.329.439.041.733.Schedule P) : due to micro.698 7.755.774.857 65 .814 56.143.042.625.522 7. 2010 december 31.430 428.396. SChEDuLES annexed to and forming part of the accounts (rupees) december 31.321 670.994.623.888 99. 2009 SChEDuLE I: Current Liabilities Sundry Creditors (Refer Note 5 .902.367 594.940 350. as and when due) other Liabilities totAL 76.100 29.000 30.697.458. 132 238.040 57.086 83.121.467.389.978 2.325 52.642) 474.603.292.840.981 3.290 66 .740 59.048.120.989.958.796.505.391.860 17.016) 612.859 2.835 250.262 (5.683 (20.882.877.721 355.344.849 SChEDuLE M: personnel expenses salaries and Bonus Contribution to : Provident Fund Other Funds Staff Training and Welfare Expenses Less : Recoveries from Subsidiaries towards Overhead Allocated totAL 1.151.595.501.824 2.other investments Profit from sale of Investments (Net) dividend income from Current investments Miscellaneous Income totAL 71.239 (26.719 377.101 6.285 44.18.424 50.822 2.Y.472.rs.165 23.616.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts (rupees) Year Ended december 31.287.971.908 736.732.908.745 (P.301.093.Buildings Repairs and Maintenance .301.836 )] Profit on sale of Fixed Assets (Net) dividend income .446.547 (P.663.016.416.483.316.228.074 737.520.040 25.925.470 1. 2009 SChEDuLE K: Income from operations income from rating services income from research services totAL 2.545.027.262.Y.696.949 228.195.390.045.648.394 52. 2010 Year Ended december 31.848.500 96.436 4.840 17.218.480.462 64.398)] interest on Loan to subsidiary [tds -rs.445 (4.850.062.932.386.051) 1.450 SChEDuLE L: other Income interest on deposits [tds -rs 6.Others Electricity Communication Expenses insurance rent rates and taxes Less : Recoveries from Subsidiaries towards Overhead Allocated totAL 62.703 61.664 1.rs.229.924) 1.938.976 4.021.261.764 53.080 65.694.234.603 3.703 5.298 SChEDuLE N: establishment expenses Repairs and Maintenance .592 103.289.156 2.243.222.062.246.014 2.882.432 28. 613 (11.2 use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to that make affect estimates the and assumptions amounts of reported assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end.194.300.835 2.778.374.515 28. The financial statements have been prepared under the historical cost convention on an accrual basis.996 137. unmatched credibility.380 18.708 9. Statement policies 2. and solutions that make markets function better.421. 2.473 76.687 24.989. although these estimates are based upon management’s best knowledge of current events and actions.074.702. actual results could differ from these estimates.059 20.069.780.613 49.199. 2010 Year Ended december 31.223.113 8.450 18. CrisiL is india’s leading ratings agency and the foremost provider of highend research to the world’s largest banks and leading corporations.641. 67 .608) 532. With sustainable competitive advantage arising from strong brand.554) 702.566.166. 2009 SChEDuLE O: other expenses Printing and stationery Conveyance and travelling Books and Periodicals vehicle Expenses Remuneration to Non-whole time Directors (Refer Note 7 . CrisiL deliver analysis. and large customer base. 2.494 18. 2006 as amended and the relevant provisions of the Companies act.929 1.323 29.978.033 179.483.591.580.745.070.Schedule P) Recruitment Expenses sales Commission seminars and Conferences Miscellaneous Expenses Less : Recoveries from Subsidiaries towards Overhead Allocated totAL 26.560 18.061 13.786. opinions.381 5.1 Basis of Preparation The financial statements have been prepared to comply in all material respects of Significant Accounting with the Notified accounting standard by Companies accounting standards rules. 1956 (‘the Act’).450 9.714 1.732 21.821 (9. the accounting policies have been consistently applied by the Company.747.763.Ready for the next level.921 3.050.817 16. Nature of operations CRISIL is a globally-diversified analytical company providing ratings and research services.275 1.491.090 6.776.764.Schedule P) Business Promotion and advertisement Foreign Exchange Loss (net) Professional Fees Software Purchase & Maintenance Expenses Provision for Bad debts Loss on sale of fixed assets Auditors' Remuneration (Refer Note 10 .850.572.800 14.260.440.949 46. market leadership across businesses.303.358 99.349.042. SChEDuLES annexed to and forming part of the accounts (rupees) Year Ended december 31.491 SChEDuLE P: Significant Accounting Policies And Notes to the Accounts 1.424 347.453 1. 4 depreciation Depreciation is provided using the Straight Line Method ( ‘SLM’) as per the useful lives of the assets estimated by the management. or at the rates prescribed under schedule xIv of the Act. Leasehold Improvements are amortized over the lease term or useful life of the asset.00% 33.21% 9. All other investments are classified as longterm investments. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term.6 operating Leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item.7 investments investments that are readily realisable and intended to be held for not more than a year are classified as current investments. Leasehold improvements are amortized over the period of 8.5 impairment the carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. global analytical services. whichever is higher. Cost comprises the purchase price and any attributable cost of bringing 2. After impairment. Long-term investments are carried at cost. in assessing value in use. Current investments are carried at lower of cost and fair value determined on an individual investment basis. 2.33% Schedule xIv Rates (SLM) 1. Items of fixed asset held for disposal are stated at lower of the net book value and net realisable value and are shown under other current assets. depreciation is provided on the revised carrying amount of the asset over its remaining useful life 2.00% 10. assets Buildings Furniture & Fixtures Office Equipments Computers vehicles Rates (SLM) 5. however. are classified as operating leases. 2. less accumulated depreciation and impairment losses if any.000 individually.63% 6. an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. 5.50% the asset to its working condition for its intended use.33% 4. the estimated future cash flows are discounted to the present value at interest rate specific to the asset and in case where the specific rate is not available at the weighted average cost of capital which is adjusted for country risk/currency risk.33% 33. provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. whichever is less. are depreciated fully in the year / period of purchase. Income from Operations income from operations comprises of income from initial rating and surveillance services. 2. special assignments and 68 .5 years to 9 years in the current year Fixed assets having original cost of less than Rs.3 Fixed Assets Fixed assets are stated at cost.00% 10.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts 2. the recoverable amount is the greater of the asset’s net selling price and value in use.8 revenue recognition revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. credit assessments.75% 16. Interest Income revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. SChEDuLES annexed to and forming part of the accounts subscriptions to information products and services. the actuarial valuation is done as per projected unit credit method. on disposal of such investments. there are no other obligations other than the contribution payable to the respective authorities or trusts. is recognised in the Profit and Loss account.10 Foreign Currency Transactions Initial Recognition Foreign currency transactions are by recorded in reporting currency applying to the foreign currency amounts the average exchange rates for the month in which the transaction takes place.Ready for the next level. are recognised as income or as expense in the year in which they arise. Conversion Foreign currency monetary items are reported using the closing rates. short term compensated absences are provided for based on estimates. Exchange Difference Exchange differences. the difference between the carrying amount and the disposal proceeds. Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. net of expenses. actuarial gains/losses are immediately taken to profit and loss account and are not deferred.9 Retirement and other employee benefits Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are carried out or milestones achieved or as per are due. 2. or reported in previous financial statements. to hedge the foreign currency risk of the underlying outstanding at the balance sheet date and also to hedge the foreign currency risk of firm commitment or highly probable forecast transactions. Dividend Income Revenue is recognised when the shareholders’ right to receive payment is established by the balance sheet date. Fees received for credit assessments and special assignments are fully recognised as income in the year in which such assessments/assignments agreement with client. dividend from subsidiaries is recognised even if same are declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of schedule vI of the Act. arising on settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded during the year. 2. the carrying amount of investments is determined using weighted average cost method. Long term compensated absences are provided for based on actuarial valuation. Surveillance fee and subscription to information products are accounted on a time proportion basis. Non monetary items which are carried in terms of historical costs denominated in a foreign currency are reported using the exchange rate at the date of transaction. Forward Contract Forward contracts are entered into. 69 . initial rating fees are deemed to accrue at 94% on the date the rating is awarded and the balance 6% is recorded equally over 11 months subsequent to the month in which the rating was awarded. Profit /(loss) on sale of investment Profit /(loss) on sale of investment is accounted when the sale / transfer deed is executed. all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. the foreign exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the exchange rate at the reporting date or the settlement date where the transaction is settled during the reporting year. such derivative financial instruments.11 taxes on income tax expense comprises of current. Any profit or loss arising on the cancellation or renewal of forward contracts is recognised as income or as expense for the year. instruments that are not covered by AS 11 “Accounting for the Effects of Changes in Foreign Exchange Rates” and that relate to a firm commitment or a highly probable forecast transaction. the Company re-assesses unrecognised deferred tax assets. deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. and the corresponding foreign currency amount translated at the later of the date of inception of the forward exchange contract and the last reporting date. it recognises unrecognised deferred tax assets to the extent that it has become reasonably certain that sufficient future taxable income will be available against which such deferred tax assets can be realised. in accordance with AS 30. deferred tax assets and deferred tax liabilities are offset. Current income tax and wealth tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian income tax act of 1961 enacted in india.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts The premium or discount on forward contracts that are entered to hedge the foreign currency risk of the underlying outstanding at the balance sheet date arising at the inception of each contract. 2. in situations where the company has unabsorbed depreciation or carry forward tax losses. This gain / loss would be recorded in the profit and loss account when the underlying transactions affect earnings. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. and wealth tax. the Company has adopted the principles of AS 30 of “Financial and its Instruments: in financial Recognition respect Measurement” derivative that relate to a firm commitment or a highly probable forecast transaction and that do not qualify for hedge accounting. is amortised as income or expense over the life of the contract. In relation to the forward contracts entered into. to hedge the foreign currency risk of the underlying outstanding at the balance sheet date. if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. which qualify for cash flow hedge accounting and where the Company has met all the conditions of as 30. are fair valued at the balance sheet date and the resultant gain / loss is credited / debited to the hedging Reserve account included in the reserves and Surplus. have been recorded at fair value at the reporting date and the resultant gain / loss has been credited / debited to profit and loss account for the year. such exchange differences are recognised in the profit and loss account in the reporting year in which the exchange rates change. other derivative instruments 70 . deferred. deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. at each balance sheet date. 71 . Unallocated items: unallocable income and expenses includes general corporate income and expense items which are not allocated to any business segment. Identification of segments: the Company’s operating businesses are organized and managed separately according to the nature of products and services provided. Allocation of common costs: Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs. in respect of which a reliable estimate can be made. The Company writes down the carrying amount of a deferred tax asset to the extent it is no longer reasonably or virtually certain. SChEDuLES annexed to and forming part of the accounts the carrying amount of deferred tax Assets are reviewed at each Balance Sheet date. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. as the case may be. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. it is probable that an outflow of resources will be required to settle the obligation. 2.13 Earnings Per Share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. 2. 2. as the case may be. that sufficient future taxable income will be available. 2.Ready for the next level.15 Cash and Cash Equivalents Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. For the purpose of calculating diluted earnings per share. with each segment representing a strategic business unit that offers different products and serves different markets. Any such write down is reversed to the extent that it becomes reasonably or virtually certain.12 segment reporting Policies Segment Policies: the Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole. The analysis of geographical segments is based on the geographical locations of customers. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Inter segment transfers: the Company generally accounts for intersegment services and transfers as if the services or transfers were to third parties at current market prices.14 Provisions A provision is recognised when an enterprise has a present obligation as a result of past event. that sufficient future taxable income will be available against which Deferred Tax Asset can be realised. 096. 2010 to March 31. the tax provision for nine months has been arrived at using the effective tax rate for the period april 1.212.359.025.590.731 8.598) as on dec 31.888 18.779 2.982.892.951.364.977. 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.511 29. Small and Medium Enterprises.102 87. The Company has the process of identification of ‘suppliers’ registered under the “the Micro. 23.477.421 121. 2011. 2011.865. Medium Enterprises Development Act.199 44.313. 2010. Details of Contingent Liabilities and Capital Commitments are as under : (rupees) Year Ended dec 31.740.016.093 5.222) (29. the ultimate tax liability of which will be determined for the period April 1.830 18.299 66.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts 3. 2010 1.042.929 15.070.498.038. 2010 and the provision for the nine months upto december 31.273 32.658 117. Small and Medium Act.908.756.500.625 14. Components of Deferred tax Assets and Liabilities are: (rupees) as on dec 31.727) (30. 2. 6.654 9.826. Development obtaining (‘MSMED’) confirmations There are no Micro. Pending before appellate authorities in respect of which the Company is in appeal decided in Company’s favour by appellate authorities and department is in further appeal 16. 2009 9.485 67. Income tax the tax year of the Company being the year ending March 31.647.393 Year Ended dec 31.307.599 195. 2010 to March 31.000) (73.021 89.797.724 2.007. from Enterprises 2006” by suppliers.871) (728.504 (67. the provision for tax for the year is the aggregate of the provision made for the three months ended March 31.571 14. 2011.858 22. Bank guarantee in the normal course of business Disputed Income Tax & Sales Tax Demand: (i) (ii) 3.543 17.050. 2010 Deferred tax Liability depreciation / amortisation Tax attributable towards tax holiday deduction Disallowance under section 40(a) totAL (A) Deferred tax Asset Provision for Leave Encashment Provision for Gratuity Lease rent amortisation Provision for Bonus and Commission Provision for bad debts deferment of rating fees Disallowance under section 40(a) totAL (B) Net Deferred tax Asset / (Liabilities) (A-B) 55.159 139. Small.586 Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for totAL 4.606.808 8.513.186.763.222) (6. 2009 72 . as defined in the Micro. 751) 2.800 9. remuneration to Whole-time directors Remuneration to Non Whole-time Directors Provision for doubtful debts (Profit)/Loss on Sale of Fixed Assets Profit from sale of long term Investments (Net) Net Profit under Section 198 Managerial Remuneration Payable to whole-time director upto 5% of the Net Profit (as computed above) Rs.380 13.942 Year Ended dec 31.677.956 6.800 The Company depreciates fixed assets at the rates which are higher than the rates prescribed in Schedule xIv of the Act.702.59. 2. Rs. for calculation of commission payable to Directors: (rupees) Year Ended dec 31.903.000 8.090 6. restricted to : 2.000.776. Managerial remuneration: (rupees) Year Ended dec 31.468. Accordingly no adjustments are made on account of depreciation in computation of profit as per section 349 of the Act.101) (338.380 1.921 (250.225.283.776.521 13. 4.670.619.000. the amount pertaining to Directors is not included above.415.800.000.Y. 2010 Managing Director : salary Commission Contribution to Provident Fund Perquisites totAL Non . 2009 1.517. Computation of net profit in accordance with Section 349 of the Companies Act.303.971.233. 3.438 24.581 (P.002. 1956.942 12. 5.223.630.000 428. SChEDuLES annexed to and forming part of the accounts 7.303.380 8.283. restricted to : Commission Payable to non whole-time directors upto 3% of the Net Profit (as computed above) Rs. 2009 Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole. 2010 Profit before tax as per Profit and Loss Account 1.Rs.388 24.99.418 24.942 9.800 13.119 10.859).400 461.000 467.984.521 11.776.540.260.964 490.020.586 19.780.100.380 49.835 1.Y.000 12.969 (P.776.630.521 Year Ended dec 31.800 46.60.Whole time Directors: Fees paid Commission totAL 1. The Company has obtained approval from Ministry of Corporate Affairs for payment of commission upto 3% of the profit as per section 349 of the Act to non whole time directors 73 .316).519 19.179.Ready for the next level.015.630.000.186 19.310. standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts 8. Amount remitted during the year in foreign currency.116.071 88.863.606 74 .381. Auditors’ remuneration includes : (rupees) Year Ended dec 31. 2009 189. earnings in foreign currency (on accrual basis): (rupees) Year Ended dec 31.401 2.788.I.204 108.425.864 18.334.o Standard & Poor’s LLC Standard & Poor’s South Asia Services Private Limited Mcgraw-hill Education India Private Limited Mcgraw-hill Education Companies Inc.994 203.853.204. 2009 2.708 2. 2010 Number of shareholders Number of equity shares of Rs 10 each held by them on which dividend was paid amount remitted (rs) 2 3.F basis The value of imports calculated on C.791. Sundry debtors includes amount receivable from following Companies under same management: (rupees) as on dec 31.474) (rupees) Year Ended dec 31.567 77.342.Zo.948 65.485 11. 2009 2.508.805 9.591. u.s.835 117. 2010 as auditor In any other matter: Certification work Out of Pocket Expenses totAL 357.450 3. 2009 2.931.553 125.411 26.948 409.I.894 3.667.332. 2010 irevna LLC.720.280 12.450 125.545.097 as on dec 31.000 41.000 58.500 2.665. irevna Poland sp.028.221.720.590 Year Ended dec 31.500 44.500 Year Ended dec 31.819 Year Ended dec 31.341.663 345.Y Rs.985 747. on account of dividends: (rupees) Year Ended dec 31.788.597.401 Year Ended dec 31.548.670.991 4.280. irevna Limited.743 250.661 88.221.218 9.341.370.K.417 13. payments in Foreign Currency a) value of imports calculated on C. totAL 215. 2010 rendering of rating and research services dividend from subsidiaries / associates totAL 9.F basis for capital goods was Nil (P.111.851 376.983. u.602 582.069. 2010 b) Expenditure in foreign currency Foreign travel sales Commission Other Expenses totAL 10. 2009 2 3.304.708 2.296.475.087. 363 research 2.179. 88.669 (38.446.982 as on dec 31.276.657 355.823.971.500.101 56. unallocable income interest income Profit on sale of investments Profit on sale of fixed assets others unallocable Expenditure depreciation Profit Before Tax Tax Expense Profit After Tax but before prior period item Prior period expense.074.414) 2.826 1.498.021.307.982 367.166 for corporates.544.183.902.271.287.956.156 1. 2009 32.928 642.229) (202.703 837. Loans and advances in the nature of loans given to companies under same management: (rupees) as on dec 31.859 2.819 131.307.287.116 594. 3.219.075 75 .507 968.897. grading services and global analytical services research segments provides high end equity research.223.406 190.522 (rupees) 2.287.329.106 totAL 5.444.Ready for the next level.109.470 5.568 968.262.189.450.308.458 1.165 250. industry reports. customised research assignments.928 1. net of tax (Refer Note 25. A description of the types of products and services provided by each reportable segment is as follows: rating services includes credit ratings 334.859 73.235.840.243. subscription to data services and iPo gradings (rupees) segment reporting for the year ended december 31.000 50.105 209.Schedule P) Profit After Tax Non-cash expenses other than depreciation and amortisation Segment Assets* investments segment debtors Segment Liabilities* Fees Received in advance revenue by Geographic segments Country india united Kingdom united states of america others totAL 404.285 43.525 Business segments ratings 2.957. 2010 Particulars operating revenue segment results Add / (Less) unallocables: 1.032.575.085.120.418 (532. banks.340.002.877.307. credit analysis services. SChEDuLES annexed to and forming part of the accounts 13. training in the credit rating field.240 360.636.899. 2010 CRISIL Risk and Infrastructure Solutions Limited irevna Limited (uK) Maximum Amount Outstanding During the year 14.989.735.517.772 27.984. small and medium enterprises (SME).754.646) 1.469 2.120. Segment reporting Business Segments: The Company has two major business segment: Ratings and Research.953 1.679. 701) 1.447.027.035 4.007.371.255.465 1.782 1. except as disclosed above. 3.819. relating to total assets and liabilities since a meaningful segregation of the available data is not feasible. the Company believes that it is currently not practical to provide segment disclosure.016.657) 1.389.416.301 159.450 1.685.465.234.218.436 812.074.789.660 1.416.267.770.218 8.712.043.870 20.683.862 29. unallocable income interest income Profit on sale of investments Profit on sale of fixed assets others 2.290 87.497 732.409.584 96.496.014 1.802.415.721 research 2. 76 .169. unallocable Expenditure depreciation Profit Before Tax Tax Expense Profit After Tax but before prior period item Prior period expense.503.497 383.084.519 (400. as the Fixed assets and services are used interchangeably between segments.096.467.666 712. net of tax Profit After Tax Non-cash expenses other than depreciation and amortisation Segment Assets* : investments segment debtors Segment Liabilities* : Fees Received in advance 377.204 712.903.039 (4.704 349.949 totAL 4.389.255.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts segment reporting for the Year ended december 31.831.403 536.503.670 revenue by Geographic segments Country india united Kingdom united states of america others totAL Notes to Segmental Results : (rupees) 2.049) (138.862 Business segments ratings 2.792.976 23.381.695.000 106.234.421.2009 (rupees) Particulars operating revenue segment results Add / (Less) unallocables : 1.450 *’Fixed Assets used in the Company’s business or Liabilities contracted have not been identified to any of the reportable segments. the Company recovered certain common expenses from subsidiaries based on management estimates and the same form a part of the segment results and disclosed as recoveries in schedules to the Profit and Loss Account.864.371.157. 028 18.145.726 6. uK subsidiary subsidiary subsidiary relationship *Company incorporated but yet to commence business operations. CRISIL Irevna Information Technology (hangzhow) Co.179 345.441 377.000.220. 2010 814. SChEDuLES annexed to and forming part of the accounts 15..o CrisiL irevna argentina s.209.068. 2009 714.000 35.094.000.805 60.851 - 77 .310. uK irevna LLC. 16.663 120.721 1. List of related parties Parties Related parties where control exists The Mcgraw-hill Companies.370. uK subsidiary subsidiary of irevna Limited.218 312.000 61.zo. Inc CRISIL Risk and Infrastructure Solutions Limited irevna Limited.462 3.000 6. LLC Standard & Poor’s South asia services Private Limited Standard & Poor’s international LLC. related party Disclosure (rupees) Name of the related party Standard & Poor’s LLC Nature of transaction Professional services rendered reimbursement of expenses amount receivable S&P India.000 6.141.000.a.508.480 12.255 88.189.791.051.018 9.525 9.800 31. LLC Standard & Poor’s LLC Standard & Poor’s International LLC.087. usa CrisiL Credit information services Limited CrisiL irevna Poland sp.602 Year Ended dec 31. inc Mcgraw-hill Education india Private Limited dividend share Capital outstanding Professional services rendered reimbursement of expenses amount receivable dividend share Capital outstanding Expenses Recovered amount receivable Expenses Recovered amount receivable Year Ended dec 31. Ltd* Pipal research analytics and information services india Private Limited other related parties S&P India.894 624.369.209.480 7.600 31.Ready for the next level.995 12. usa The Mcgraw-hill Companies. uSA Standard & Poor’s South Asia Services Private Limited Mcgraw-hill Education India Private Limited india index services and Products Limited Key Management Personnel roopa Kudva Managing Director & Chief Executive Officer Fellow Subsidiary Fellow Subsidiary Fellow Subsidiary Fellow Subsidiary Fellow Subsidiary Joint venture The ultimate holding Company subsidiary subsidiary subsidiary of irevna Limited.712 108.000. 501.668 78.690 1.924 56.946 3.970 - Pipal research analytics and investment outstanding information services india Private Limited *Roopa Kudva remuneration paid 24.946.394.050 250.438.603 18.000 32.000.227 506.427 187.zo.668 5.500.333 42.332.956 5.000 6. 2010 175.500.000 10.796.365.129 7.859 400.292.837.151 44.743 500.185.585 34.486.156 20.170 9.369.400 4.997.982 1.642 500.969.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts related party Disclosure (Contd) (rupees) Name of the related party CRISIL Risk and infrastructure solutions Limited Nature of transaction revenue share paid Year Ended dec 31.200.900 705. 78 .999.326.369.621 11.521 19.597.000 10.000 Year Ended dec 31.400.360 695.o india index services and Products Limited investment outstanding investment outstanding Professional Fees amount Payable (net) Professional Fees amount Payable (net) Reimbursement of Expenses dividend received investment outstanding 1.178 6.583. usa Professional services rendered Sales Commission Expense Reimbursement of Expenses amount receivable (net) CrisiL Credit information services Limited CrisiL irevna argentina.615.991 840.501.979 6.297 32.000 1.051 4.310.382.300.970 111.017 49.641.458.500.383.684. uK Professional services rendered Sales Commission Expense Reimbursement of Expenses amount receivable (net) investment outstanding Loan interest income irevna LLC.992.670.563.239 588.743 2. the amount pertaining to directors is not included above.942 *Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole.630.523 60.999.747. s.755 83.795 4.597 215.500.900 874.000 3.756.599.204 49. CrisiL irevna Poland sp.a.000 32.033.987 13.472.735.707.144.239 334. 2009 - revenue share received Loan given during the year Loan repaid during the year Loan outstanding interest income Expenses Recovered share of overhead expenses received Amount Receivable (Net) investment outstanding irevna Limited.607 27.060. 2009 238.978 Year Ended dec 31.412.034 2.994.889 151.959 106. 356.057.332.834.Ready for the next level.820 15.567 9.509.961. The scheme is funded with an insurance company in the form of a qualifying insurance policy.142.881 421.036.130.669 4. 2010 assets reserves and surplus Liabilities income Expenses Tax Expense Contingent Liability 18. SChEDuLES annexed to and forming part of the accounts 17.726. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Profit and Loss Account: Net employee benefit expense (recognised in Employee Cost) 79 .588 1.740.069 1.506 86.295.470.533.882.270 10.660 Year Ended dec 31. Some of these agreements have a price escalation clause.238.353.192 The following tables summarise the components of net benefit expense recognised in the Profit and Loss account and the funded status and amounts recognised in the Balance sheet for the respective plans.213.the details of interest in the Joint venture are as under : (rupees) unaudited Year Ended dec 31.652 377.824 169.023. details as regards payments and future commitments are as under : (rupees) Year Ended dec 31.597. Gratuity and Leave Encashment Benefits The Company has a defined benefit gratuity plan.769.383 11.657.344 17.224 3.399. The Company has 49% interest in India Index Services and Products Limited (a joint venture in India with National Stock Exchange).133 9.426. operating Lease The Company has taken certain office premises on non cancellable operating lease basis. 2010 Lease Payment recognised in Profit and Loss Account Future Minimum Lease Payments : Not later than One Year Later than One Year & not later than Five Years Later than FiveYears totAL 19. As per the Accounting Standard relating to Financial Reporting of Interest in Joint venture (AS 27) notified by Companies Accounting Standards Rules.034.949 1.930.305 22.611.796.858 3.202. 2009 122.826 66. 2006 as amended. 093.320 43.295. 2010 Present value of funded obligations Less: Fair value of plan assets Net Liability 108.533.000 (51.170 4.930 53.091.100) 46.558 (142.410 55. 2009 12.883.992.950 (2.016.926.570) as on dec 31.120) (2.819.574.930 3.277.910 (8.500) 40.883.586) 51.016.753.961.500 2.400 Year Ended dec 31.461.930) 7.720 (1.130.226 (8.961.275.816 (41.570 22.434.050) as on dec 31.926.892.430 as on dec 31.812. 2008 3.662.168. 2007 Experience adjustment on plan assets Experience adjustment on plan liabilities 3.929 12. 2009 (1.554 3.252.230) 80 .100) 53.870 14.926.950 1.835.440 Changes in the present value of the defined benefit obligation are as follows: Opening Defined Benefit Obligation Current service Cost interest Cost actuarial (gain)/loss Benefits paid Closing Defined Benefit Obligation Changes in the fair value of plan assets are as follows: Opening Fair value of plan assets Expected return on plan assets actuarial gain/ (loss) Contribution by employer asset acquired on acquisition Benefits paid Closing Fair value of Plan Assets 46.816 5.677 (5.434.000 41.320 (3.820.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts (rupees) Year Ended dec 31.042.960.883.471.334.551 (5.586) 108.540 2.130.457.632.170 4.870 Details of experience adjustment on plan assets and liabilities are as follows : (rupees) as on dec 31.806.806.093.120) 28.091.295. 2009 53.540 2.147 as on dec 31.992. 2010 2.670 16.753 2.720) 3.570) 56.574. 2010 Current service cost Interest cost on defined benefit obligation Expected return on plan assets Net actuarial (gain)/ loss recognised in the year Losses/(gains) on “Acquisition/Divestiture” Net gratuity Benefit Expense Balance Sheet: Details of Provision for gratuity Benefit (rupees) as on dec 31.870 (46.275.940 14.457. 000. 2010 discount rate Estimated rate of return on plan assets Expected Employee Turnover Age : 21-44 Years Age : 44-57 Years Expected Employer’s Contribution next year (Rupees) 6. 2009 379. 2010 Investment with Insurer actual return on plan assets (Based on interest rate declared by the insurer as at 31st March 2010/2009) The overall expected rate of return on assets is determined based on the market prices prevailing on that date.30% The estimates of future salary increases.0% 30. wherein mark to market on forward contracts are routed through hedging reserve account. applicable to the period over which the obligation is to be settled.0% 32.000.973. 2009 100% 9. CrisiL has increased the hedge programme to cover forecasted revenue as against receivable as a part of risk management strategy.336 442.000.000. such as supply and demand in the employment market. 2009 8.153 6.727.5% 6.781 16.500 187. during the current year.000 8. seniority.458.5% 6. Accounting for revenue hedge is done as per guidelines prescribed under AS 30 “Financial Instruments: Recognition and Measurement”.000 Amount in INR 752.500. considered in actuarial valuation.711 as on dec 31. the principal assumptions used in determining gratuity for the Company’s plans is as below: Year Ended dec 31.000 6.667.50% (rupees) Year Ended dec 31.000 3. promotion and other relevant factors. (rupees) 20.20% 7. however.20% 8. at the later part of the year.493. 2010 652.153. Details of unhedged foreign exposure Current asset Current Liability as on dec 31.547.Ready for the next level.25% Year Ended dec 31.750 81 .730 21. take account of inflation. Initially the hedge programme covered only forex receivable for which CRISIL followed AS 11 “Accounting for the Effects of Changes in Foreign Exchange Rates”. Forward Contract Outstanding as at 31st December 2010 : Currency usd GBP EuR amount 16. company has initiated a hedge programme to mitigate foreign exchange (forex) related risk. 22.000 6. SChEDuLES annexed to and forming part of the accounts The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: (rupees) Year Ended dec 31.50% 100% 9. CRISIL Limited sold balance 10% stake in gas Strategies group Limited in September 2010. February 14. the Board of directors. v.standalone financial statements Cash Flow Statement Schedules forming part of Accounts additional information SChEDuLES annexed to and forming part of the accounts 23. 2010 the Company has bought back from the open market through stock exchanges 128.686. an amount of rs. Firm Registration No.071 being the premium on buy back has been appropriated from securities Premium.560 being the nominal value of equity shares bought back has been transferred to Capital redemption reserve account from General reserve.: 102102 Mumbai.27. CrisiL Limited acquired 100% ownership in Pipal Research analytics and information services india Private Limited. Consequently.890. 24.281.858. 474.156 equity shares of rs.1.444. 320.024 which subsequently extinguished.796.R.: 301003E Chartered accountants per Shrawan Jalan Partner Membership No. amount of rs. 2011 h. 2010 approved the buyback of equity shares of the Company. on 3rd december 2010. an as per our report of even date. In accordance with Sec 77A. BATLIBOI & CO. For S. 77AA and 77B of the Companies act. 2011 roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company secretary Mumbai. 26.953 (net of tax). February 14.1956 and pursuant to the buy back announcement made by the Company on september 9. Bhargava director For and on behalf of the Board of Directors of CRISIL Limited 82 .393 being the balance premium on buy back has been appropriated from General reserve. Prior period item includes gratuity expense rs. 10 each during the year for a total consideration have been of Rs. previous year comparatives Previous year’s figures have been regrouped where necessary to conform to current year’s classification. an amount of rs. Sinor director Rama Bijapurkar director thomas schiller director B.N. 25. at its meeting held on september 9. 072 Equity 100 Equity Shares 2. 2011 83 . Sinor director thomas schiller director Rama Bijapurkar B.000 Equity shares of rs. analytics and CrisiL Credit CrisiL irevna CrisiL irevna irevna Limited.254.statement pursuant to section 212 of the Companies act .195 2. Ltd.966.489 - as is not dealt with the Company’s Accounts : (a) Profits / (losses) for the period ended December 31.562. Poland sp.496.775 (11.999. The financial period of the subsidiary Company ended on 3.003 78. shares of £ 1 us$ 200 each. fully paid up fully paid up each. Net aggregate amount of the Profits /(Losses) of the subsidiary so far as dealt with or provision is made - for those losses in CrisiL Limited accounts (a) For the subsidiary’s Financial period ended december 31. v. 741.2010 of the subsidiary (rupees) (b) Profits / (losses) for the previous financial year of the subsidiary.232.10 each. fully paid up 100% 100% 100% 100% 100% each. fully paid up fully paid up shares of ars 1 of PLN 500 each.085) 5.000 Equity shares of rs. us Pipal research 1.498 (7.10 each.776 1. 2010 31. 2010 31. February 14. fully paid up.442) 2. 2010 10. (a) Number of shares in the subsidiary held by CRISIL 49. Bhargava director director roopa Kudva Shrikant Dev Company secretary Managing Director & Chief Executive Officer Ready for the next level. uK irevna LLC. december 31. since it became the subsidiary of CrisiL Limited (rupees) 5.962) 4.946 (13.056. 2010 50.1 31. 2010 (rupees) (b) For the previous year since it became a subsidiary of CrisiL Limited (rupees) For and on behalf of the Board of Directors of CRISIL Limited h.878.061) 712.039.566 748. 2010 31.900 Equity Limited at the above date each. Mumbai.590 (5.000 Equity 1 Equity Share of shares of re. 100% 100% december december december december december december information information argentina s.932. Name of the subsidiary company SChEDuLES solutions Limited 2.o. 2010 31.a.Zo. fully paid up (b) Extent of interest of CRISIL in the capital of the annexed to and forming part of the accounts subsidiary 4.1956 relating to subsidiary Company (rupees) CRISIL Risk and infrastructure services Limited services (i) Pvt.795. Net aggregate amount of the profits/ (losses) of the subsidiary so far it concerns the members of CrisiL 50. 2010 31.N. 055 3.957. Bhargava director 84 .055 70. thousands) Public issue rights issue Bonus issue Private Placement Preferential offer of shares under Employee Stock Option Scheme Position of Mobilisation and Deployment of Funds (Amount in Rs.175. state Code Balance sheet date Capital raised during the Year (amount in rs.343 3.968 3. v. 1956 Balance Sheet abstract and Company’s general Business Profile i.546 271.763 1.328.standalone financial statements Cash Flow Statement schedules forming part of accounts Additional Information ADDITIONAL INForMAtIoN as required under Part Iv of Schedule vI to the Companies Act. iii.554.087 998.058 121.609 2. February 14.61 2.735 1.625. registration details Registration No.935 6.N. Sinor director Mumbai. v.533. 2010 3.625.000 ii. Performance of Company (amount in rs.Thousands) total Liabilities total assets Source of Funds Paid up Capital Reserves & Surplus secured Loans unsecured Loans Application of Funds Net Fixed Assets Capital Work-In-Progress (including Capital Advances) investments deferred tax asset Net Current Assets Miscellaneous Expenditure accumulated Losses Iv.thousands) turnover Total Expenditure Profit/(Loss) Before Tax Profit/(Loss) After Tax Earnings Per Share (Rs.023. Not Applicable Not Applicable For and on behalf of the Board of Directors of CRISIL Limited Rama Bijapurkar director roopa Kudva Managing Director & Chief Executive Officer thomas schiller director h.) dividend rate% generic Names of Three principal Products/Services of Company (as per monetary terms) Production description Credit rating research services 42363 11 december 31.470 830 1.489. 2011 Shrikant Dev Company secretary B. Item Code No. 2010 of a joint venture company. of the state of affairs of the Group as at December 31.212 as at December 31. Consolidated financial statements and Accounting Standard (AS) 27. Financial Reporting of Interests in Joint Ventures. 2010 as certified by CRISIL’s Place: Mumbai Date: February 14.235 and net cash inflow amounting to Rs. Consequently the unaudited financial statements of one joint venture company for the year ended December 31. Firm registration number: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India. management has been used for consolidation and we have relied upon the same. We did not audit the financial statements of six subsidiaries.426. as amended.567 and total cash inflow of Rs. the audited financial statements are not available in respect of one joint venture company.R.972 for the year then ended. as at December 31. 6. Our responsibility is to express an opinion on these financial statements based on our audit. read with the matter stated in paragraph 4 above and Note 11 of the Consolidated Financial Statements of the Group: (i) in the case of the Consolidated Balance Sheet. and to the best of our information and according to the explanations given to us.926. and also the Consolidated Profit and Loss account and the Consolidated Cash Flow statement for the year ended on that date annexed thereto.947. (ii) in the case of the Consolidated Profit and Loss account. of the cash flows for the year ended on that date. 2010. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.655. 2. 5. 2010. 2010. 3. 2010. 169. whose financial statements reflect total assets of Rs. on a test basis. 4. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components and based on unaudited financial statements for the year ended December 31.019 for the year then ended. 84. total revenue of Rs.: 102102 (iii) in the case of the Consolidated Cash Flow statement. 48.481. These financial statements are the responsibility of the CRISIL’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components.959. An audit also includes assessing the accounting principles used and significant estimates made by management. AuDITORS’ report the Board of Directors of CrISIL Limited 1. We conducted our audit in accordance with the auditing standards generally accepted in India. which represents total assets of Rs. BATLIBOI & Co. 2. 2006. An audit includes examining. We report that the consolidated financial statements have been prepared by CRISIL’s management in accordance with the requirements of Accounting Standards (AS) 21. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. evidence supporting the amounts and disclosures in the financial statements. We have audited the attached Consolidated Balance Sheet of CRISIL Group (‘Group’). 104.508. total revenue of Rs.889 as at December 31. As stated in Note 11 of the Notes to the Consolidated Financial Statements.Ready for the next level. notified by Companies Accounting Standards Rules. as well as evaluating the overall financial statement presentation.512. of the profit for the year ended on that date. 2011 For S. and 85 . and our opinion is based solely on the report of other auditors. We believe that our audit provides a reasonable basis for our opinion. 1. 931 3.428 854.747.928 2.253 142.940 3. Bhargava Director For and on behalf of the Board of Directors of CRISIL Limited 86 .367 3.863.291.514 618.615.900.875.338.639 387.248.329.521.249.Consolidated financial statements Consolidated Balance Sheet Consolidated Profit and Loss Account CONSOLIDATED BALANCE Sheet as at December 31.807 510.201.753.151 1.000 4.613.440 3.: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No.Schedule P) Current Assets. 2011 Roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company Secretary Mumbai.265.198 850.: 102102 Mumbai.575.098.744 1.873.127.770 2.944.902 3.789 72. Loans And Advances Sundry Debtors Cash and Bank Balances Loans and Advances Other Current Assets The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.175.099 4.868 1. Sinor Director Rama Bijapurkar Director Thomas Schiller Director B.673 636.139.327 100.393. For S.552.605 462.824 642. Firm Registration No. 2009 SOuRCES OF FuNDS Shareholders’ Funds Share Capital Reserves and Surplus TOTAL A B 70. 2010 December 31. February 14.041.113.224.284 1. February 14.099 1. 2010 (Rupees) Particulars Schedule December 31.405.505 4.968.681.226.944.122.200.150 2.705.733.085.R. V.107.533 1.645 2.889.726 922. 2011 H.002.661.676.294.N.092.113.976.380 C 3.380 1.521.837.908.283. BATLIBOI & CO.397 1.338.900 Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets TOTAL Significant Accounting Policies and Notes to the Accounts P I J 1.843.947 110.294.088.459.246.250. As per our report of even date.578 D 262.659.541 1.430.102.099 APPLICATION OF FuNDS Fixed Assets Gross Block Less: Accumulated Depreciation/Amortization Net Block Capital Work-In-Progress (including Capital Advances) INVESTMENTS Deferred Tax Assets (Net) (Refer Note 5 .447 221.182 E F G H 1.028.174.682. As per our report of even date.111.171.273.258 549.421. 2010 (Rupees) Particulars Schedule Year Ended December 31.844 5.810 4.020 (42.10 (Refer Note 14 .776.754.766) (88.754.492.848 285.014.598.288 772.330. February 14.500.N.885.525 2.528.875.046.074. 2011 Thomas Schiller Director B.879.53 7.000 123.000 722.225.456 195.723.735 4.668.001 2. Sinor Director 87 .625.506.007.484 2.469) 586.444.245 212.264.569 730.607.877.482 2.959 484.000 180.384.730 7.600 1.856.Nominal value of Rs.718.166 150.492.600 1.100 1.350 712.309.822.186 2.848 1.885.372. February 14.298 628.441.427. For S. 2011 For and on behalf of the Board of Directors of CRISIL Limited Rama Bijapurkar Director Roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company Secretary Mumbai.865.: 102102 Mumbai.551.796.953 2.Schedule P) Number of Shares used in Computing Earnings Per Share* (Refer Note 14 .384.078.742.345.355.438) 466.093 P Year Ended December 31.100 2. net of tax (Refer Note 16 Schedule P) Profit After Tax Balance brought forward from previous year Amount Available for Appropriation Dividend Interim Proposed Final Dividend TOTAL Dividend Tax on Interim and Proposed final dividend Transfer to General Reserve Balance carried to Balance Sheet Basic and Diluted Earnings Per Share .602.314.060.671 838.581.315 692.466.776. BATLIBOI & CO.Ready for the next level.: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No.284.640 230.912 752.955 541.607.496.515.960 148.100 239.207.375.000 177.685.603 4.850 (22.496.659 3.299 2.666.R.603 3.395 3.885.551.337.082. 2009 5.581.770. Bhargava Director H.955 222.587.359 1.245 2.674.355 3.718.Schedule P) Significant Accounting Policies and Notes to the Accounts *Weighted Average M N O The schedules referred to above and notes to accounts form an integral part of the Profit & Loss Account.524. V. 2010 6.198 27.109. Firm Registration No.000 INCOME Income from Operations Other Income TOTAL K L EXPENDITuRE Personnel Expenses Establishment Expenses Other Expenses Depreciation TOTAL Profit before Tax tax expense Current Tax Fringe Benefit Tax Wealth Tax Deferred Tax Income Tax of earlier years Profit After Tax and before prior period items Prior period expense.054. CONSOLIDATED PROFIT AND LOSS ACCOuNT for the year ended December 31.730.09 7. 747. 2010 2.698) 1.448. 2009 2.444 (434.(Increase)/decrease in advances .328.102.886 (280.152 (12.799.515.285.735 30.767 (498.220.025 2.758.Taxes paid Net cash generated from operating activities .(Increase)/decrease in loans .427.186 33.732.268) (3.901.834 (205.321.533.890 (106.(Increase)/decrease in sundry deposits .306) (747.634.383 28.840) 2.526.Schedule P) Foreign Currency Translation Reserve unrealised Foreign exchange loss (Profit)/ Loss on sale of fixed assets (Profit) on sale of investments Provision for bad debts Interest on deposits Dividend income from Other investments Dividend Income from long term investments Operating profit before working capital changes Movements in working capital . CASH FLOW FROM OPERATING ACTIVITIES: Profit before tax Adjustments for : Depreciation Provision for leave encashment Provision for gratuity (Refer Note 16.543) (3.Schedule P) Proceeds from sale of fixed assets Investments in mutual funds Investment in National Commodity and Derivative Exchange Limited Sale proceeds from Investment in National Commodity and Derivative Exchange Limited Sale proceeds from investments in Gas Strategies Group Limited Sale proceeds from investments in mutual funds 88 .682.090 (804.550.820 (22.298 212.341 (759.538.525.586.301) (38.654.887.018 1.791.130.865.325 (227.616.728.751) 7.394.613) 82.976) 70.983.467.310.(Increase)/decrease in sundry debtors .000) 374.742) (23.062.(Increase)/decrease in accrued income .465 (650.936.475) (125.Consolidated financial statements Consolidated Cash Flow Statement CONSOLIDATED CASH FLOW STATeMeNT for the year ended December 31.478) (345.Increase/(decrease) in fee received in advance .152.Increase/(decrease) in sundry creditors .062..598.271 (81.741.176.Increase/(decrease) in other liabilities Cash generated from operations . 2010 (Rupees) Particulars Year Ended December 31.663 6.368.191.934.581.942 (96.668.486.103) 1.459.189 58.176.855.411.486.303 6.040) 2.836 (251.117.144..268.433.474) (2.399 5.750 148.726.841) 909.109 55.077.500) (4.959 A.256 (24.311 4.559.252) (99.722.215.443.615) 299.000 1. CASH FLOW FROM INVESTING ACTIVITIES : Purchase of fixed assets (Refer Note 15.005) 323. Year Ended December 31.074.311) 91.372.327.109.357) 1.646.187 101.000.(A) B.744) 75.037) 2.395 29.517 Contd.391.609) (93. 921) 909.342.R.532.250.062. V.913.840 (343.336.447.355) (316.205.714 54.327) 470. For S.593.256.292. 2011 For and on behalf of the Board of Directors of CRISIL Limited Rama Bijapurkar Director Roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company Secretary Mumbai.593.593.(C) Net Increase/(decrease) in cash and cash equivalents (A+B+C) Add : Adjustment towards acquisition Net Increase/(decrease) in cash and cash equivalents after divesture adjustment Cash and cash equivalents .014 595.410. 2009 - C.500 4. CASH FLOW FROM FINANCING ACTIVITIES : Buy Back of Shares Dividend and dividend tax paid Net cash generated from/(used in) financing activities .750 112.477. CONSOLIDATED CASH FLOW STATeMeNT for the year ended December 31.858.256.(B) (975.014 Year Ended December 31.928) 623.183.501. 2010 (111.735.093 Significant Accounting Policies and Notes to the Accounts (Refer Schedule p) The schedules referred to above and notes to accounts form an integral part of the Cash flow statement.144.371 747.967 595.250.732.024) (1.093 (314. As per our report of even date.562 91.452) (928.250.845 (796.522.522.336.126 595.331) (2.163. BATLIBOI & CO. Sinor Director (424.Opening balance Cash and cash equivalents .742 701. 2011 Thomas Schiller Director B.058.327) (928.: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No.014 470.573.562 439.921) 175.275.452 909.812 23. February 14.822 (314.584 909.928) 610.N. Bhargava Director H.593.680.040 2.: 102102 Mumbai.743) 2.Ready for the next level. February 14. Firm Registration No. 2010 (Rupees) Particulars Payment made for acquisition of Pipal Research Analytics and Information Services India Private Limited Investment in fixed deposits Proceeds from fixed deposit maturity/renewal Interest on deposits Dividend Income from long term investments Dividend income from current investments Net cash generated from/(used in) investing activities .051) Year Ended December 31.430 909.562 470.Closing balance Net Increase/(decrease) in Cash and Cash equivalents Components of cash and cash equivalents as at* Cash on hand With banks on current account *Cash and cash equivalent includes earmarked unpaid dividend amount (Refer Schedule F) 89 .160. 178.000) Equity Shares of Rs. Subscribed and Paid up: 7.000 (P.798.552.560) 1.699 195.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.560 2.513 150.718.781.281.968.986) 25.225.000 100. 600.096. 3.968.372.385) 4.111 474.781.120.Transfer on account of buy back of equity shares (Refer Note 14.228 (6.890.000 SCHEDuLE B: Reserves & Surplus Securities Premium Account Opening Balance Less:.759. 7.217 3.111 474.000. uSA and 3.759.890.071 (474. Inc.890.052.000.250.. 10.560 122.674.281.696 (6.10 each Issued.000 70.568.120.699 (7.000) Equity Shares of Rs.186 1.232. Schedule P) TOTAL (C) Profit and Loss Account (D) General Reserve as per last Balance Sheet Opening Balance Add : Transfer from Profit and Loss Account Less :Transfer to Capital Redemption Reserve account (Refer Note 14.071 90 . Schedule P) TOTAL 70.873.028.000 (P. 2010 December 31.444. Schedule P) Less :used towards buy back of equity shares (Refer Note 14.081) 1.used towards buy back of equity shares (Refer Note 14.440 72. 2009 SCHEDuLE A: Share Capital Authorised Capital: 10.309. LLC (a wholly owned subsidiary of The McGraw-Hill Companies.000) Equity Shares are held by Standard & Poor’s International LLC.Y.948) Equity Shares are held by S&P India.071) 474.496. 10 each fully paid up [Of the above.686.The ultimate Holding Company)] (Refer Note 14.440 72.548.386.000 100.038.890.099 (320.071 122. 600.Y.940 1.844 (P.337.603 1.281.399) (2.000. Schedule P) TOTAL (A) Capital Reserve (B) Capital Redemption Reserve Opening Balance Add:.178.Y. Schedule P) TOTAL (e) Foreign Currency Translation Reserve as per last Balance Sheet (Add)/Less : Movement during the year TOTAL (F) Hedging Reserve Account (G) TOTAL (A+B+C+D+e+F+G) 1.863.000.482 (1.250.393) 1.754.385) (4.265.810 2.948 (P.232.Y. 770 642.151 212.413 203.753 3.525.897 76.787.346. Adjustment column refers to asset and depreciation addition on account of acquisition of 100% ownership in Pipal Research Analytics and Information Services India Private Limited ( Refer Note 15.587.158 25. 2010 As on December 31.004 TOTAL 1.448 11.999 212.402 22.773 Goodwill - 124. 2.527 Leasehold Improvements 159.563.264 3.681.405.445 32.021 65.846 2.581.233 614.225.938.298 16.624.673 69.994.462 Office Equipments (Refer note below) 173.756.670.705.151 124.61.664.859 203.436.911 101.089 18.036.499.354 Furniture and Fixtures (Refer note below) 140.830 82.522.092 103.901.271.834.479 2.923 98.005.989.445 Non Compete - 32.074 Brand - 25.976.307 97. Additions in Intangible Assets is with respect to acquisition of business assets from Pipal Research Corporation.174.830 46.775 78.587 861.317 Note 1. 2010 upto January 1.215 25.879.832 - 24.515.507.079.873.507.578 124.943 344. 2009 691.850 1.941 1.891 202.824 89.091 316.691 8.414.032 21. Refer Schedule H.183.976.060.661 161.701 443.232.807).338 31. Adjustment with respect to building.019 850.843.796.676.779.478 30.823.200.298 Customer Relationship - 202.266 494.883.160.934. 91 .314.735 37.641.180.340 65.074 25.077 17.719 101.976.478 207.237.956 140.053.250 annexed to and forming part of the Consolidated Accounts Computers - 441.428 1.254 9.020.355 Previous Year 1.681.814.842 8.324.565. 2010 As on December 31.257.134 135.661 Fixed Assets Buildings ( Refer note below) 185.891 201.968.747.849.896.950.824 559.014 14.659.283.413 494.666 65.750.222.898 36.421.123 10.074 71.499.185 163.436.824 1. 2010 Additions Deductions Intangibles 5.086 70.395 642.563.505.187 825.751.587 89. furniture and office equipment are on account of certain premises being classified as held for sale in the current year (Previous Year net written down value Rs.774.791.743.908.SCHEDuLE C: (Rupees) Accumulated Depreciation/Amortization As on December 31.360 124.777 10.663.576 4.291.248.593 96.265.187.567.648 For the year On Assets sold Adjustments upto December 31.204.968.521 129.912.916.399 436.155.705.550 29.280.827 28.792.749.107 1.850.574. Ready for the next level.200.605.267.198 1.880 489.360.107 861.655 16.781 33.056 18.803 588.859 Net Block Adjustments Fixed Assets Gross Block at Cost SCHEDuLES As on January 1. uS.525.111.234 148. 2010 1.888 567.773 124.820.339.661.859 71.762 Vehicles 50.843.708 - Goodwill On Consolidation 691.979 52.225.245 2.593 133.281 417.160.733.279.218.673 825. Schedule P) 3.098.658. {A} B.998 13.000.At Cost ) 1.1.083.3.000 13.10. Current Investments (At Cost Or Market Value.294.Y.Y 35.625. whichever is lower) * Investments In Mutual Funds (unquoted) Nil units (P.250.Y.Y 12.000 Equity Shares during the year Total Long Term (At Cost) .000 shares during the year) 300.642.642.991 92 . 300.500 56.647.001 61.600.099. Fund Appreciation (Sold 62.10 each HDFC Liquid Fund Premium Plan Dividend Reinvestment 150.250.Dividend Reinvestment (Sold 35.000) Equity Shares of Gas Strategies Group Limited of £1 each.51.642.578 units) of Rs.48.936 units during the current year ) Nil units (P. 2009 December 31.269 units) of Rs.Y.430 units)of Rs.000 36.Y.499) 1 25.000 95. Sold 40.000 (P.10 each of Tata Liquid Super High Inv.10 each.474. 2010 December 31.352 units during the current year ) Nil units (P. 2009 SCHEDuLE D: Investments A.51.Y. 62.269 units during the current year) Nil units (P.255 351.946 151.936 units ) of Rs.647.08.000) Equity Shares of Caribbean Information and Credit Rating Agency of uS $ 1 each.875. fully paid up (Purchased 900.151.706 151.897. 2010 December 31.578 units during the current year) Nil units (P.065 units) of Rs.065 units during the current year) Nil units (P. Long Term (unquoted .10 each of ICICI Prudential Institutional Liquid Plan .48.000.fully paid up.474.933 100.Y1. fully paid up Less: Provision for diminution in value of Investment Nil (P.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.10 each of uTI Liquid Cash Plan Institutional Dividend reinvestment (Sold 1.352 units) of Rs.Y.000) Equity Shares of National Commodity and Derivative Exchange Limited of Rs.727.990 56.642.000 (P.10 each of Sundaram BNP Paribas Money Fund Institutional Plan (Sold 5.10.5.499) 1 - (13.000 shares during the year and Sold 2.500 (13.10 each of Principal Cash Management FundLiquid Option Institutional Premium Plan Dividend Reinvestment (Sold 1.08. 40. 805 9.900.Considered doubtful Less : Reserve for Doubtful Debts Amount receivable from following Companies under same management Standard & Poor’s LLC Standard & Poor’s South Asia Services Private Limited The McGraw-Hill Companies.946. (Purchased 10.430 units during the current year) Investments In Mutual Funds (Quoted) 10.088.246.Considered doubtful Other debts . 2009 SCHEDuLE D: (Contd) Investments (Sold 12.294.791.389 84.397 69. 2010 December 31.801. 2010 December 31.845.000 units during the current year) Total Investments in Mutual Funds {B}* Proportional Share of Investments in Mutual Fund by Joint Venture Company {C} (unquoted -At Cost Or Market Value.327 1.355 (84. 2010 December 31.965 1.558 (Rupees) December 31.850.851 94.663 345.518.498 100.678 46.637.774) 922.994.363 1.016.049.617 85.123.913.352 3. 2009 December 31.838 113.253 206.508.Considered good .227.041.Ready for the next level.354.000.309 9. SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.085.Considered good .844 93 .679 103.960.175.673.000 105.252 999.00.00.679) 1.744 854. Inc McGraw-Hill Education India Private Limited 112.000 units of Rs 10 each ICICI Prudential FMP Series 53 .000.649 (82.791.000 - 262.208.372.1 Year Plan D cumulative. 2009 SCHEDuLE E: Sundry Debtors Debts outstanding for a period exceeding six months .602 116. whichever is lower) * Total Investments {A}+{B}+{C} *Aggregate market value of Company’s investment in Mutual Funds 100.946. 544.393.Rs.427 1.445 1.107.928 180.38.994.646 1.548.605.639 7.093.217 16.833.875.889.455.920 221.113.605 855.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.114.442.127.437.766.201.514 SCHEDuLE G: Loans and Advances (unsecured. 175.Y. when due) Other Liabilities Deferred Grant Revenue (Refer Note 17 . Considered Good) Loans to Staff Advance Recoverable In Cash or kind for value to be received Advance Taxes paid Sundry Deposits 22.498.698 61.615.548 387.974 462.547.140 78.807 1.531 663.807 110.819 3.464.102.584 905.902 7.157 27.161 588.947 SCHEDuLE H : Other Current Assets Interest Accrued On Fixed Deposit With Banks Accrued Revenue Forward Contract Receivable Assets held for sale (Refer Note 1 on Schedule C) Grant Receivable (Refer Note 17 .216 666.768.400.994.746.142 510.447 24.490) marked as lien for Guarantees issued by Banks on behalf of the Company.310 395.609.026 8.321 147.321 91.826 14.000 31.920 1.625.838 64.017.615.194 78.537 25.63.645 94 .207 479.238.214 167.344.507.605 67.194 95.800 618. 2010 December 31.613.265.822 186.733. 2009 SCHEDuLE F: Cash & Bank Balances Cash on Hand Balances with Scheduled Banks On Current Accounts On Deposit Accounts On unpaid Dividend Accounts Deposit includes Fixed Deposits with Banks Rs.022.973.639 SCHEDuLE J : Provisions Proposed Dividend Corporate Dividend Tax thereon Provision for Tax Provision for Leave Encashment Provision for Gratuity (Refer Note 16 .068.166.Schedule P) 780.575.733.473.Schedule P) 177.931 SCHEDuLE I: Current Liabilities Sundry Creditors Fees received in advance unclaimed dividend (to be credited to Investor Education & Protection Fund.100 29.661.676.344.714 7.421.746 18.088 67.126 587.106.065.157 (P.214 1.500 3.245 152.303.426 42.256.334.Schedule P) 33.467.020.092.294.972. 755 34.266 5.258 SCHEDuLE N : establishment expenses Repairs and Maintenance .864)] Profit on sale of Fixed Assets (Net) Dividend Income .117.732.502 2.520.113 54. 2010 December 31.004 230.656 77.Other Investments Profit from sale of Investments (Net) Dividend income from Current Investments Miscellaneous Income Proportionate share in interest income of Joint Venture 75.848.588 87.466 549.569 2.861 103. 2009 SCHEDuLE K : Income From operations Ratings Services Advisory Services Research Services Proportionate share in Joint Venture 2.932.018 58.030.510 68.062.046.807.877.587.671 69.318 435.060.552 6.215 287.407 19.19.078.185.422.215.306 747.526.685.613 23.478 2.840.844 SCHEDuLE M : personnel expenses Salaries & Bonus Contribution to :Provident Fund Other Funds (Refer Note 16 .211.372 2.314.323 2.530) (P.256.206.Others Electricity Communication expenses Insurance Rent (Refer Note 9 .323.014 599.282.192.766 712.427.735.265 4.525.327.640 SCHEDuLE L : other Income Interest on Deposits [TDS Rs.903.6.298.799.582 61.135 730.Schedule P) Staff Training and Welfare Expenses 2.383 6.343.782 79.016.976 4.339 251.424.840 17.155.581.467.218 5.372.Ready for the next level.280.992.307.060.737.094.237.Buildings Repairs and Maintenance .200 66.350 1.942.Schedule P) Rates & Taxes 68.730.028.368 3.146 2. SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.719.156 515.040 26.079 2.730 106.742 345.991 58.097.400 69.355.871 2.858 61.569.811.Y Rs.648.144.912 95 .723.389.747.095.500 96.284. 356 11.917.779 82. and risk and policy advisory services.612.421 20.419 1.203. income and expenses.230.443. 1956 (‘the Act’).909 21.838 13. unmatched credibility. 2.890 7.799.404 28.510 1. market leadership across businesses. 2010 December 31.Financial Reporting of Interests in Joint Ventures notified by Companies Accounting Standards Rules.431. 2006 as amended and the relevant provisions of the Companies Act.591.423 30.612.334.217 214.559.395.132 1. 2.412.770 23.877. and solutions that make markets function better.576.471. CRISIL is India’s leading ratings agency and the foremost provider of high-end research to the world’s largest banks and leading corporations.049 10.198.342 1.049 9.488 165. 2. 2.540.953 5. Principles of consolidation 2.641.960 SCHEDuLE P: Significant Accounting Policies and notes to the Consolidated Accounts 1.066.220 17. Nature of Operations CRISIL is a globally-diversified analytical company providing ratings. 2009 SCHEDuLE O : other expenses Printing and Stationery Conveyance and Travelling Books and Periodicals Vehicle Expenses Remuneration to Non-whole time Directors Business Promotion and Advertisement Foreign Exchange loss(net) Professional Fees Software Purchase & Maintenance Expenses Provision for Bad Debts Loss on sale of fixed assets Auditors’ Remuneration Recruitment Expenses Seminars & Conferences Miscellaneous Expenses Proportionate share in administrative and other expense of Joint Venture 29.630 37.450 9.2 The financial statements of the Group and its’ subsidiaries have been combined on a line by line basis by adding together the book values of like items of assets.369 16. With sustainable competitive advantage arising from strong brand.217. research.295. liabilities.Consolidated Financial Statements notified by Companies Accounting Standards Rules.560.846 70.879.007.936 11.4 Interests in joint venture have been accounted by using the proportionate consolidation method as per Accounting Standard 27 .3 The consolidated financial statements are prepared by applying uniform accounting policies in use at the group.110.236.017 335.111 22.928 334.042.427. after duly eliminating intra group balances and intra group transactions and resulting gains/ losses as per Accounting Standard 21 .915 23.872. CRISIL deliver analysis. 96 .734 838.271 5.1 The consolidated financial statements include the financial statements of CRISIL Limited consolidated with the financial statements of its wholly owned subsidiaries and joint venture (“Group”).849.419.829 752. 2006 as amended.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts (Rupees) December 31.245 26. and large customer base.937. opinions. . and accumulated depreciation “Consolidated AS-25 “Interim Financial Reporting” and AS. The financial statements have been prepared to comply in all material respects with the Notified accounting standard by Companies Accounting Standards Rules. (‘CFS’) prepared accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end.o. 3. 3. Basis of Preparation The with Consolidated are Accounting Financial in Standard Financial Statements accordance (‘AS’) 21 Statements”. Pipal Research Analytics and Information Services India Private Limited CRISIL Irevna Information Technology (Hangzhow) Co.z. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.2 Fixed Assets Fixed less assets are stated at cost. The accounting policies have been consistently applied by the Group.A. has been recognised as Goodwill on consolidation. CRISIL’s holding directly or through Subsidiaries therein are as under : consideration over the net assets as at the date of investment. actual results could differ from these estimates.6 The list of subsidiary companies and joint venture and the Holding Company viz.1 use of Estimates The preparation of financial statements in conformity with generally accepted impairment losses if any. uS India Index Services and Products Limited (Joint Venture) CRISIL Irevna Argentina S. CRISIL Irevna Poland Sp. 2006 as amended and the relevant provisions of the Companies Act. 3. uK Irevna LLC. Ltd* India India united Kingdom united States India Argentina Poland India China *Company incorporated but yet to commence business operations. The financial statements have been prepared under the historical cost convention on an accrual basis. Name of the company Country of Incorporation Ownership in % either directly or through Subsidiaries 31-Dec-10 31-Dec-09 100% 100% 100% 100% 49% 100% 100% 100% 100% 100% 100% 49% 100% 100% 100% 100% CRISIL Risk and Infrastructure Solutions Limited CRISIL Credit Information Services Limited Irevna Limited.5 The excess of Group’s purchase 2.Ready for the next level. SCHEDuLES annexed to and forming part of the Consolidated Accounts 2.27 “Financial Reporting of Interests in Joint Ventures” issued by the Institute of Chartered Accountants of India (ICAI). Items of fixed asset held for disposal are stated at lower of the net book value and net realisable value and are shown under other current assets. knowledge Although these estimates of current events and are based upon management’s best actions. 97 .o. 1956 (‘the Act’). 3. 3. 3. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. Initial rating fees are deemed to accrue at 94% on the date the rating is awarded and the 98 .4 Impairment The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. are classified as operating leases.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts 3. depreciation is provided on the revised carrying amount of the asset over its remaining useful life. special assignments and subscriptions to information products. After impairment.5 Intangibles Goodwill is amortized on a systematic basis over the best estimate of it’s useful life. the estimated future cash flows are discounted to the present value at interest rate specific to the asset and in case where the specific rate is not available at the weighted average cost of capital which is adjusted for country risk/currency risk. Income from Operations Income from Operations comprises of income from initial rating and surveillance services. provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. All other investments are classified as long-term investments. Details of estimated useful life of intangible assets are as under : Assets Goodwill Customer relationship Brand Non compete Estimated useful Life 10 Years 3 to 10 Years 10 Years 3 Years assessing value in use. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Leasehold improvements are amortized over the period of 3 years to 9 years in the current year. global analytical services.7 Investments Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. 3. details of which are as under : Assets Buildings Furniture & Fixtures Office Equipments Computers Vehicles Estimated useful Life 20 Years 4 to 16 Years 4 to 10 Years 3 to 5 Years 3 Years Leasehold Improvements are amortized over the lease term or useful life of the asset.8 Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The recoverable amount is the greater of the asset’s net selling price and value in use. whichever is less. Long-term investments are carried at cost. credit assessments.6 Operating Leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item. However.3 Depreciation Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term. In 3. Dividend from subsidiaries is recognised even if same are declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of schedule VI of the Act. When the grant or subsidy relates to an expense item. is recognised in the profit and loss account . Conversion Foreign currency monetary items are reported using the closing rates. In respect of foreign subsidiaries retirement benefits are governed and accrued as per local statutes. 3. it is deferred in the balance sheet and recognized as income over the periods necessary to match it on a systematic basis with the costs which it is intended to compensate Interest Income Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Long term compensated absences are provided for based on actuarial valuation. Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial deferred. Non monetary items which are carried in terms of historical costs denominated in a foreign currency are reported using the exchange rate at the date of transaction. 3. arising on settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded during the year. Revenue from risk management services comprises of revenue from sale of software and annual maintenance of software. Profit /(loss) on sale of investment Profit /(loss) on sale of investment is accounted when the sale / transfer deed is executed . There are no other obligations other than the contribution payable to the respective authorities or trusts. The carrying amount of investment is determined using weighted average cost method. On disposal of such investments. Surveillance fee and subscription to information products are accounted on a time proportion basis. Short term compensated absences are provided for based on estimates. Exchange Difference Exchange differences.10 Foreign Currency Transactions Initial Recognition Foreign currency transactions are recorded in reporting currency by applying to the foreign currency amounts the average exchange rates for the month in which the transaction takes place. Grants and subsidies are recognized at fair value where there is reasonable assurance that the grant/subsidy will be received and all attaching conditions will be complied with. Revenue from infrastructure advisory services are recognized as income in the year in which such assessments/assignments are carried out or milestones achieved. the difference between the carrying amount and the disposal proceeds.Ready for the next level.9 Retirement and other employee benefits Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. Fees received for credit assessments and special assignments are fully recognised as income in the year in which such assessments/ assignments are carried out or milestones achieved or as per agreement with client. Dividend Income Revenue is recognised when the shareholders’ right to receive payment is established by the balance sheet date. net of expenses. The actuarial valuation is done as per projected unit credit method. SCHEDuLES annexed to and forming part of the Consolidated Accounts balance 6% is recorded equally over 11 months subsequent to the month in which the rating was awarded. or reported in previous financial gains/losses are immediately taken to profit and loss account and are not 99 . Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. if a legally enforceable right exists to set off Reserve Account included in the Reserves and Surplus. The Company has adopted the principles of AS 30 “Financial Instruments: Recognition and Measurement” in respect of its derivative financial instruments that are not covered by AS 11 “Accounting for the Effects of Changes in Foreign Exchange Rates” and that relate to a firm commitment or a highly probable forecast transaction. the exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the exchange rate at the reporting date or the settlement date where the transaction is settled during the reporting year. such derivative financial instruments. which qualify for cash flow hedge accounting and where the Company has met all the conditions of AS 30. In relation to the forward contracts entered into. 100 . and fringe benefit tax. the assets and liabilities. are fair valued at the balance sheet date and the resultant gain / loss is credited / debited to the Hedging 3. is amortised as income or expense over the life of the contract. Forward Contract Forward contracts are entered into.12 Taxes On Income Tax expense comprises of current.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts statements. This gain / loss would be recorded in the profit and loss account when the underlying transactions affect earnings. In accordance with AS 30. to hedge the foreign currency risk of the underlying outstanding at the balance sheet date arising at the inception of each contract. With respect to foreign subsidiaries tax expense is recorded and recognised as per local statute. this amount is transferred to profit and loss account. have been recorded at fair value at the reporting date and the resultant gain / loss has been credited / debited to profit and loss account for the year.11 Translation of Integral and Non Integral foreign operation The financial statements of an integral foreign operation are translated as if the transactions of the foreign operation have been those of the company itself. In translating the financial statements of a nonintegral foreign operation for incorporation in financial statements. of the nonintegral foreign operation are translated at the closing rate. to hedge the foreign currency risk of the underlying outstanding at the balance sheet date and also to hedge the foreign currency risk of firm commitment or highly probable forecast transactions. both monetary and non-monetary. 3. Such exchange differences are recognised in the profit and loss account in the reporting year in which the exchange rates change. deferred. On disposal of the net investment. income and expense items of the non integral foreign operation are translated at average exchange rates and resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment. Other derivative instruments that relate to a firm commitment or a highly probable forecast transaction and that do not qualify for hedge accounting. to hedge the foreign currency risk of the underlying outstanding at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset. and the corresponding foreign currency amount translated at the later of the date of inception of the forward exchange contract and the last reporting date. are recognised as income or as expense in the year in which they arise. The premium or discount on forward contracts that are entered into. Any profit or loss arising on the cancellation or renewal of forward contracts is recognised as income or as expense for the year. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. 3. For the purpose of calculating diluted earnings per share.15 Provisions A provision is recognised when an enterprise has a present obligation as a result of past event. At each balance sheet date. The Company writes down the carrying amount of a Deferred Tax Asset to the extent it is no longer reasonably or virtually certain. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. the Company reassesses unrecognised deferred tax assets. in respect of which a reliable estimate can be made. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. with each segment representing a strategic business unit that offers different products and serves different markets. The carrying amount of Deferred Tax Assets are reviewed at each Balance Sheet date. Allocation of common costs: Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs unallocable items: unallocable income and expenses includes general corporate income and expense items which are not allocated to any business segment. 3. SCHEDuLES annexed to and forming part of the Consolidated Accounts current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Any such write down is reversed to the extent that it becomes reasonably or virtually certain. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain that sufficient future taxable income will be available against which such deferred tax assets can be realised. that sufficient future taxable income will be available.14 Earnings Per Share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. as the case may be. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The analysis of geographical segments is based on the geographical locations of customers Inter segment transfers: The Group generally accounts for intersegment services and transfers as if the services or transfers were to third parties at current market prices. 3. all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. 101 .13 Segment Reporting Policies Segment Policies: The Group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group as a whole Identification of segments: The Group’s operating businesses are organized and managed separately according to the nature of products and services provided. it is probable that an outflow of resources will be required to settle the obligation. as the case may be. 3.Ready for the next level. that sufficient future taxable income will be available against which Deferred Tax Asset can be realised. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. In situations where the company has unabsorbed depreciation or carry forward tax losses.16 Cash and Cash Equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. 021 45.182.157 Year Ended Dec 31.644.747 47. grading services and global analytical services.492. industry reports.085.464.2010 1.406.006 142. Details of Contingent Liabilities and Capital Commitments are as under : (Rupees) Year Ended Dec 31.802.2010 Deferred Tax Liability Depreciation / Amortisation Tax attributable towards tax holiday deduction Disallowance under section 40(a) Deferred Tax Asset Provision for Leave Encashment Provision for Gratuity Provision for Bonus and Commission Provision for bad debts Deferment of Rating fees Lease Rent amortisation Depreciation / Amortisation Long term capital loss Disallowance under section 40(a) Net Deferred Tax Asset / (Liability) 6.809) As on Dec 31.756.779 33.2009 175.182 48.554.392.093. Components of Deferred Tax Asset and Liability are: (Rupees) As on Dec 31.299 89.106 798.826.2009 38.543 18.824) (29.544 63.419 8.868.535 100.890 rating field.226) (1.081 5. customised research assignments.514.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts 4.012 32. training in the credit 60. banks.658 19.822.310.797.159 22. -The Advisory segment comprise of infrastructure advisory and risk management practice.Rating services includes credit ratings for corporates. Bank Guarantee in the normal course of business Disputed Income Tax & Sales Tax Demand: (i) Pending before Appellate authorities in respect of which the Group is in appeal (ii) Decided in Group’s favour by Appellate authorities and Department is in further appeal 3. 2. . subscription to data services and IPO gradings.Research segments provides high end equity & corporate research.689.265) (424.326. credit analysis services.959.278) (75.153 16.958.747. Research and Advisory.522.385 73. small and medium enterprises (SME).265.726 (68.234 2.583) (31. A description of the types of products and services provided by each reportable segment is as follows: .329.460.513.614 17.166.409 2. Segment Reporting Business Segments: The Group has three major business segment: Ratings.228 217.470 19.475 3.281) (6. Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for 149.282 8. 102 .095 1.212.187 18.365.231.082 30.988.211.314.902 131.025. 446 595.735) 2.666.902.Ready for the next level.648.170.119.339 251.200.418 336.747.613 58.456.568 215.284.125 244.754.305 103 .877.327.771 Research 2.668.423 88.180.308.927.847.840.478 345.284. unallocable Income Interest Income Profit on sale of Fixed Asset Profit on sale of investments Others 2.175.334 936.297 (49.405 14.054.303.507.176 Business segments Ratings 2.118.929.109 663.283 44.427.999) (212. 3.079 79.581.525.865.799.567.127.175.569 2.245 167.171 TOTAL 6.639 (Rupees) 360. net of tax Profit After Tax Non-cash expenses other than depreciation and amortisation Segment Assets* : Segment Debtors Segment Liabilities* : Fees Received in advance Revenue by Geographic Segments Country India united Kingdom united States Of America Others TOTAL 2.444.060.268 1.823.183.409 1.872.111.822.109. 2010 (Rupees) Particulars Operating Revenue Segment Results Add / (Less) unallocables: 1.129 1. unallocable Expenditure Depreciation Profit Before Tax Tax Expense Profit After Tax and before prior period items Prior period expense.924.806.557.569 404.679.298 (586.198 (27.082.754.427.156 1.953) 2.100) 2. SCHEDuLES annexed to and forming part of the Consolidated Accounts Segment Reporting for the Year ended December 31.311.285 34.754 6.363 Advisory 515.608 75. 467.299.479.608.946 324.053.666 280.723.389.610.007.169.808 106.721 Advisory 130.854 8. except as disclosed above.121. 2.822.525. The Company believes that it is currently not practical to provide segment disclosure.166 568. unallocable Expenditure Depreciation Profit Before Tax Tax Expense Profit After Tax and before prior period items Prior period expense.016.380 5.069.409. relating to total assets and liabilities since a meaningful segregation of the available data is not feasible.745 (4. 2009 (Rupees) Particulars Operating Revenue Segment Results Add / ( Less ) unallocables : 1.005.462.986 1.074.359) 1.081.372.097.731 181.519 375.218 14.976 26.002.052. net of tax Profit After Tax Non-cash expenses other than depreciation and amortisation Segment Assets* : Segment Debtors Segment Liabilities* : Fees Received in advance Revenue by Geographic Segments Country India united Kingdom united States Of America Others TOTAL Notes to Segmental Results : *’Fixed Assets used in the Company’s business or Liabilities contracted have not been identified to any of the reportable segments.515.286.607.264 1.381.050 1.723.301 10.171 20.600 1.776.959 (466.735. as the Fixed assets and services are used interchangeably between segments.600 43.490 1.171 Research TOTAL 599.372.930. unallocable Income Interest Income Profit on sale of Fixed Asset Profit on sale of current investments Others 2.598.382 104 .055) (148.607.829. The Group recovered certain common expenses from subsidiaries based on management estimates and the same form a part of the segment results. 3.384.640 377.198 (Rupees) 349.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts Segment Reporting for the Year ended December 31.750.502 2.326.776.124 5.768.395) 2.770.220.168.998.683.880 Business segments Ratings 2.014 1.583.306 96.640 861. 518. Inc Expenses Recovered Amount Receivable McGraw-Hill Education India Private Limited Amount Receivable Roopa Kudva* Remuneration paid 345.2009 735.000.942 Expenses Recovered 6. the amount pertaining to directors is not included above. Inc Other Related parties S&P India.000.309 312.018 9.480 12.549.000 35.255 Year Ended Dec 31.000.220.000. LLC Standard & Poor’s LLC Standard & Poor’s International LLC.508.189.602 24.000 6.209.800 31.094.791.521 19.805 60. List of related parties Parties Related parties where control exists The McGraw-Hill Companies.480 7. uSA McGraw-Hill Education India Private Limited Key Management Personnel Roopa Kudva Related Party Disclosure (Rupees) Name of the related party Standard & Poor’s’ LLC Nature of transaction Professional Services Rendered Revenue share paid Reimbursement of expenses Amount Receivable S&P India.352 624.Ready for the next level.028 1.2010 832.000 61.663 120.141.600 31.630.000 9. uSA Share Capital Outstanding The McGraw-Hill Companies.462 18.712 12.441 377. LLC Dividend Share Capital Outstanding Standard & Poor’s South Asia Services Private Limited Professional Services Rendered Reimbursement of expenses Amount Receivable Standard & Poor’s International LLC.049.145.179 6.525 112.209.851 Dividend 3.726 85. 105 . SCHEDuLES annexed to and forming part of the Consolidated Accounts 7.000.171 Managing Director & Chief Executive Officer Fellow Subsidiary Fellow Subsidiary Fellow Subsidiary Fellow Subsidiary The ultimate Holding Company Relationship Standard & Poor’s South Asia Services Private Limited Fellow Subsidiary *Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Group as a whole.699 Year Ended Dec 31.051.728.495.310.135 1. The scheme is funded with an insurance 441.909 1.099 10.238.567 9.372 Year Ended Dec 31.569.484 435.594 1.660 Year Ended Dec 31.994.130.859.740.270 10.506 86.057.964.202. Details as regards payments and future commitments are as under : (Rupees) Year Ended Dec 31.470.083.073.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts 8.426. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.986.906 2.332.611.597. As per the Accounting Standard relating to Financial Reporting of Interest in Joint Venture (AS 27) notified by Companies Accounting Standards Rules.034.399. 2006 as amended.582.429.383 11. Gratuity and Leave encashment Benefits The Group has a defined benefit gratuity plan.213.747.353.305 22.368.2010 Assets Reserves and Surplus Liabilities Income Expenses Tax Expense Contingent Liability 9.959 106.344 17.858 3. Some of these agreements have a price escalation clause.509. The following of tables net summarise benefit the components expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.2010 Lease Payment recognised in Profit & Loss Account Future Minimum Lease Payments : Not later than One Year Later than One Year & not later than Five Years Later than FiveYears 387.669 4.2009 287.820 15.826 66.961.133 9.the details of interest in the Joint Venture are as under : (Rupees) unaudited Year Ended Dec 31.281 1.192 Group in the form of a qualifying insurance policy.224 3.083.657.2009 122. The Company has 49% interest in India Index Services and Products Limited (a joint venture in India with National Stock Exchange). 106 .889 151.871 169. operating Lease The Group has taken certain office premises on non cancellable operating lease basis.558. 810 2.234.810.085 5.957 14.890) 31.956.906 2.357.845. 2007 Dec 31.085.845.980.210 (1.889.371 4.320 Changes in the present value of the defined benefit obligation are as follows: Opening Defined Benefit Obligation Current Service Cost Interest Cost Plan Amendments Actuarial (gain)/loss Liabilities assumed on acquisition/(Settled on Divestiture) Benefits paid Closing Defined Benefit Obligation Changes in the fair value of plan assets are as follows: Opening Fair value of plan assets Expected return on plan assets Actuarial gain/ (loss) Contribution by employer Asset acquired on acquisition Benefits paid Closing Fair Value of Plan Assets 51.212.394 (11.703 46.637) 59.032 (299.726 3.810 (2.580 3.546 4.085.502 2.991.835.Ready for the next level.729) 67.581.548 4.797 (40.442.250 (6.357.412 3.2009 14.199 (11.2010 Current Service cost Interest cost on defined benefit obligation Expected return on plan assets Net actuarial (gain)/ loss recognised in the year Past Service Cost Losses/(Gains) on “Acquisition/Divestiture” Net Gratuity Benefit expense Balance Sheet: Details of Provision for Gratuity Benefit (Rupees) As on Dec 31.502) 39.956.128. 2008 Dec 31.923.774. SCHEDuLES annexed to and forming part of the Consolidated Accounts Profit & Loss Account: Net employee benefit expense (recognised in Employee Cost) (Rupees) Year Ended Dec 31.840) (3.478.2009 Dec 31.2010 Present value of funded obligations Fair value of plan assets Net Liability 122.712 2.477.236.974 4.995) 122.105.740 (170.703 (54.956.774.794.052) 107 .640) 51.729 25.2010 Experience adjustment on plan assets Experience adjustment on plan liabilities 853.514.908.956.629.802.974 As on Dec 31.412 59.810.794.128.960 (51.109.140 18.653.548 16.974 (3.479.514.400.664) (1.2009 59.052 2.004) 54.580 3.105.523.514.235.956.220) 3.653.957 16.680 (6.173 Year Ended Dec 31.479.740 42.956) 61.066.412) 8.207.210) 4.714 5.960 Details of experience adjustment on plan assets and liabilities are as follows : (Rupees) As on As on As on As on Dec 31.723. 000 Amount in INR 752.20% 7.25% Year Ended Dec 31.50% Year Ended Dec 31.000.50% 6.336 442.750 108 . applicable to the period over which the obligation is to be settled. 11. CRISIL has increased the hedge programme to cover forecasted revenue as against receivable as a part of risk management strategy. CRISIL Limited sold balance 10% stake in Gas Strategies Group Limited in September 2010.50% 6. The accounts of India Index Services and Products Limited is unaudited and the financial statements (excluding notes to accounts) as certified by the management.00% 33.000. 12.000. 2009 8.000 6. 13. The principal assumptions used in determining Gratuity for the Group’s plans is as below: (Rupees) Year Ended Dec 31. However.000 6.000.153. Initially the hedge programme covered only forex receivable for which CRISIL followed AS 11 “Accounting for the Effects of Changes in Foreign Exchange Rates”. 2009 100% 9.00% 35.000 3.547.30% The overall expected rate of return on assets is determined based on the market prices prevailing on With respect to foreign subsidiaries Gratuity and other retiral benefits are provided as per local statute.000. During the Current Year company has initiated a hedge programme to mitigate foreign exchange (forex) related risk.500 187.973.000 8. at the later part of the year.50% 100% 9. have been considered in these consolidated financial statements. Accounting for revenue hedge is done as per guidelines prescribed under AS 30 “Financial Instruments: Recognition and Measurement” wherein mark to market on forward contracts are routed through hedging reserve account Forward Contract Outstanding as at 31st December 2010 : Currency uSD GBP EuR Amount 16.2010 Investment with Insurer Actual return on plan assets (Based on interest rate declared by the insurer as at 31st March 2010/2009) that date.2010 Discount Rate Estimated rate of return on plan assets Expected Employee Turnover Age : 21-44 Years Age : 44-57 Years Expected Employer’s Contribution next year 6.Consolidated financial statements Schedules annexed to and forming part of the Consolidated Accounts SCHEDuLES annexed to and forming part of the Consolidated Accounts The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: (Rupees) Year Ended Dec 31.20% 7. Innovative Economy scheme and will be available to the Company over a period of 5 years. 17.N. The Board of Directors.890.444. As per our report of even date. For S.560 being the nominal value of equity shares bought back has been transferred to Capital Redemption Reserve Account from General Reserve. at its meeting held on September 9. 2011 H. 15. 2010 the Company has bought back from the open market through stock exchanges 128. CRISIL’s subsidiary in Poland has received an in principle approval for sanction of grant amounting to Rs.393 being the balance premium on buy back has been appropriated from General Reserve.920 . Sinor Director Rama Bijapurkar Director Thomas Schiller Director B.281.686. 474.R. Firm Registration No.27. Previous year comparatives Previous year’s figures have been regrouped where necessary to conform to current year’s classification.1956 and pursuant to the buy back announcement made by the Company on September 9.344. 78. 2011 Roopa Kudva Managing Director & Chief Executive Officer Shrikant Dev Company Secretary Mumbai. BATLIBOI & CO. 16. An amount of Rs. The grant has been awarded under Operational Program .156 equity shares of Rs.858. On 3rd December 2010. CRISIL Limited acquired 100% ownership in Pipal Research Analytics and Information Services India Private Limited.: 102102 Mumbai. Prior period item includes gratuity expense Rs. 10 each during the year for a total consideration of Rs.953 (net of tax). An amount of Rs. Bhargava Director For and on behalf of the Board of Directors of CRISIL Limited 109 . V. 18. SCHEDuLES annexed to and forming part of the Consolidated Accounts 14.: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No. February 14. subject to fulfillment of certain conditions.071 being the premium on buy back has been appropriated from Securities Premium. 320. In accordance with Sec 77A.024 which have been subsequently extinguished.1. 2010 approved the buyback of equity shares of the Company. an amount of Rs.796. Consequently. 77AA and 77B of the Companies Act. February 14.Ready for the next level. fully paid up paid up 3.539) 175.906.474 416.084 59.546 11. fully paid up 100 Equity 2.284.814 5.252.876.823 33.003 Schedules annexed to and forming part of the Consolidated Accounts 11.780.072 Equity Shares of ARS 1 each.085) - 50.241.443.488. Name of the subsidiary company CRISIL Risk and CRISIL Credit Infrastructure Solutions Information Limited Services Limited 2.273. 2011 . Dividend Paid For and on behalf of the Board of Directors of CRISIL Limited H. - Tax Expense 23. uK Irevna LLC. uS Pipal Research Analytics and Information Services (I) Pvt.117.084 28.009 6.000 Equity Shares of Rs.704 6. Profit After Taxation 50.056.116.452 39.138.273.358.994) 203. February 14. 10.096.835 16.195 - Share Capital 49.361.232.305 790.758) 59.704 5.878.489 Statement pursuant to details to be furnished for subsidiaries as prescribed by the Ministry of Corporate Affairs SCHEDuLES 1.591) 2. CRISIL Irevna Poland Sp.566 494.676.257.N.214.431 1.305 175.039.000 Equity Shares of Rs.241. Sinor Director Shrikant Dev Company Secretary Thomas Schiller Director Rama Bijapurkar B. - Total Assets 398.10 each.148 675.963 (5. Bhargava Director Director Roopa Kudva Managing Director & Chief Executive Officer Mumbai.780.878.1 each.189.447. Investments 7. Turnover 520.10 each.715.254.287.214.489 2.590 (4. Irevna Limited. Reserves & Surplus 217.498 (19.000 Shares of PLN Equity Shares of 500 each.562.556) 416.A.492.o.753 8.558 2.110 (Rupees) CRISIL Irevna Argentina S.900 Equity Shares of Re.877 2.999.732 651.140 4.231 1. fully paid up (60. V. fully paid up (94.189.541.061) 552.474 (11. Ltd. Profit/(Loss) Before Taxation 73. fully of £ 1 each.877 15.006 annexed to and forming part of the Consolidated Accounts 10.252.Zo.498 2. fully paid up 3.068 748.096. fully paid up 1 Equity Share of uS$ 200 each.455 2.823 16. Total Liabilities 398.186.694.853 39.853 95.085) (11.009 Consolidated financial statements 9.067 (5.242. 741. being eligible. 2011 Company Secretary 111 . Mumbai – 400021. Next to Sachivalaya Gymkhana. with or without modification. Bhargava.” By Order of the Board For CRISIL Limited Shrikant Dev Mumbai. 2011 at 3. to pass. who retires by rotation and. being eligible. 2010 and Balance Sheet as at that date. the following resolution. 4. Nachiket Mor. 2010 and declare final dividend for the year 2010 on equity shares. 5. To appoint a Director in place of Dr. to transact the following business: ORDINARY BuSINESS 1. Batliboi & Co. 2. 3. Yashwantrao Chavan Pratishthan. who retires by rotation and. B. February 14.R. To consider and if thought fit. consider and adopt the audited Profit & Loss Account of the Company for the year ended December 31.V. as an Ordinary Resolution: “RESOLVED that Messrs S.30 pm at Rangaswar Hall. To confirm the payment of interim dividends on the Equity shares for the year ended December 31. Chartered Accountants. offer himself for reappointment. Gen Jagannath Bhosale Marg.Ready for the next level. To appoint a Director in place of Mr. April 15. To receive. be and are hereby re-appointed Auditors of the Company to hold office from the conclusion of this Meeting until the conclusion of the next Annual General Meeting of the Company on such remuneration as may be decided by the Board of Directors. notICe NOTICE is hereby given that the Twenty-fourth Annual General Meeting of the members of CRISIL Limited (the Company) will be held on Friday. offer himself for reappointment. 4th floor. together with the Report of the Board of Directors and Auditors thereon.. and In respect of shares held in electronic form. if declared at the Annual General Meeting. (i) 6. Director. 1956. 8. the following information is furnished about the Directors proposed to be appointed/re-appointed. an MBA from the Indian Institute of Management. the consolidated financial statements. The accounts of the subsidiary companies. March 15. Members who have a valid claim to the said unclaimed dividend may claim the same from the Company before the transfer takes place. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER. 2.00 p. therefore. and an undergraduate degree in Physics from the Mumbai university. Nachiket Mor is given below: Dr. offers himself for re-appointment.D. The Company has obtained an exemption from the Ministry of Corporate Affairs for publication of the Accounts of its subsidiaries under the provision of Section 212 of the Companies Act. on all working days from the date hereof upto the date of the Meeting. Project Finance. 2011.. He has worked with ICICI from 1987 to 2007 in a variety of jobs. Dividend as recommended by the Board of Directors. 3 Dr. retires by rotation and being eligible.00 a.D.notICe (contd. 4. stamped and signed should reach the Registered Office of the Company not less than 48 hours before the time of the Annual General Meeting. Nachiket Mor is a Yale World Fellow. 2011 to Thursday. he was associated with a Philadelphia based hedge fund (Quantitative Financial Strategies) for three years. and 1. A proxy form duly completed.) NOTES: 1. 7. the Company shall transfer the unclaimed dividend relating to the financial year 2003-2004 to the Investor Education and Protection Fund of the Central Government after the expiry of seven years from the date of transfer to unpaid dividend account.m. including Corporate Planning. ITeM NO. include accounts of subsidiary companies. therefore. duly audited by the Statutory Auditors. in Economics from the university of Pennsylvania with a specialization in Finance from the Wharton School. Rural Finance and Treasury and was a member of its Board 112 . Members are requested to note that the Company’s shares are under compulsory demat trading for all investors. The Accounts of subsidiary companies and other detailed information will be made available to the investors seeking information at the Company’s Registered Office. A brief resume of Dr. 1956. Members are.m. Ahmedabad. 5. March 16. Pursuant to Clause 49 of the listing agreement with the stock exchanges. March 17. 2011 (both days inclusive). The Register of Members and Share Transfer Books of the Company will remain closed from Wednesday. 3. However. 2011. has a Ph. Nachiket Mor. requested to dematerialise their shareholding to avoid inconvenience. shall be paid: (i) to those Members whose names appear on the Register of Members of the Company after giving effect to all valid transfers in physical form lodged with the Company and its Registrar and Transfer Agents before Tuesday. While completing his Ph. March 15. on the basis of beneficial ownership as per the details furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) at the close of business hours on Tuesday. In accordance with the provisions of Section 205A of the Companies Act. All the documents referred to in the Notice and Explanatory Statement will be available for inspection by the Members at the Registered Office of the Company between 11. are not separately included in the Annual Report. V. Hiranandani Business Park.V. B. he assisted ICICI in setting up a philanthropic foundation. IKP Centre for Technologies in Public Health. Excel Crop Care Limited and Grasim Bhiwani Textiles Limited. IKP Centre for Advancement in Agricultural Practice. ITeM NO. B. is interested or concerned in this Resolution. A brief resume of Mr. He is also the Chairman of Investors’ Grievance Committee of CRISIL Limited and member of the Investors’ Grievance Committee of Maxx Mobile Communications Limited.V. He is member of the Audit Committee of CRISIL Limited. Supreme Industries Limited. 2011 Registered Office: CRISIL House. Nachiket Mor as a Director. B. Grasim Industries Limited. In the past he has served as the Chairman of the Fixed Income Money Market and Derivatives Association of India for two years and as a Board Member of Wipro Limited for five years.K. The Board considers it in the interest of the Company to appoint Dr. Central Avenue. Nachiket Mor. New York. Powai. Director. retires by rotation and being eligible. and has been Chairman from May 1999 to July 2008. 113 . Bhargava. B. None of the Directors.V. of Directors from 2001 to 2007. Nachiket Mor is currently also an independent member of a few other Boards including IKP Trust.V. Mumbai – 400076. J. By Order of the Board For CRISIL Limited Shrikant Dev Company Secretary Mumbai. He was associated with ICICI Limited for three decades. February 14. L&T Infrastructure Finance Limited. offers himself for re-appointment. the ICICI Foundation for Inclusive Growth and served as its founding President. He does not hold any share in the Company. L&T Finance Holdings Limited and Chairman of the Audit Committee of J. Dr. Bhargava is given below: Mr. L&T Finance Holdings Limited and Maxx Mobile Communications Limited. Grasim Bhiwani Textiles Limited. Bhargava has been associated with CRISIL since 1992.V.Ready for the next level. None of the Directors. Lakshmi Precision Screws Limited.K. He is currently on the Board of ICICI Lombard General Insurance Company Limited. B. Bhargava. B. Lakshmi Cement Limited. 4 Mr. is interested or concerned in this Resolution. CARE India and IFMR Trust and is closely involved in the evolution of these three organizations. Bhargava does not hold any share in the Company. From October 2007 to August 2010. except Mr. Excel Crop Care Limited. Bhargava as a Director. He was associated with the Tariff Commission of India and the Indian Investment Centre. The Board considers it in the interest of the Company to appoint Mr. and retired as Vice-Chairman and Managing Director in 1996. Grasim Industries Limited. Mr. He is a member of the Audit Committee and Chairman of the Allotment Committee of CRISIL Limited. He is also Chairman of CRISIL’s Rating Committee. He is now the Chairman of the Boards of Sughavazhvu Health Care. Lakshmi Cement Limited. except Dr. and the Institute for Financial Management and Research. ar 114 . Z. Plot no. Ahmedabad-380 015 Tel : + 91-79-4024-4500 Fax : + 91-79-4024-4520 Bengaluru W-101.S. Chicago. Egmore.18. Bengaluru-560 042 Tel: + 91-80-4244-5399 Fax: + 91-80-4244-5300 Pipal Research Analytics & Information Services India Pvt. Office No. Prahladnagar . Mumbai-400 070 Tel : + 91-22-4047-2100 Fax : + 91-22-4047-2045 ReGIONAL OFFICeS Ahmedabad unit No. G-1. New York. Near Punjagutta Cross Road. No 37 Montieth Road. 415.irevna. Satellite. Block No. 7th Floor. del Libertador 1969. “Sharma Complex”. Shivajinagar. MRC Nagar Chennai-600 028 Tel : + 91-44-4226-3400 Fax : + 91-44-4226-3001 Gurgaon Pipal Research Analytics & Information Services India Pvt. Tower –II. Sector.com. Sunrise Chambers.T. Bengaluru-560 032 Chennai Thapar House. Hiranandani Business Park. 57. Ltd.10 & 12 (57 & 58). T. New Delhi-110 065 Tel : + 91-11-4250-5100/ 2693-0117 Fax : + 91-11-2684-2212 (Ratings) + 91-11-2684-2213 (Infrastructure Advisory) CRISIL Irevna Poland Sp. Nagar Main Road. 56 L. Venus Atlantis.I. Tel : + 91-44-2854-6205 / 06 Fax : + 91-44-2854-7531 Bascon Futura IT Park 8th floor. Venkatnarayana Road. IL 60661 CRISIL Irevna Argentina SA Argentina Av.o. Chowringhee Road. Powai. Tel : + 48-71-324-1720 The Oval No.1 & 2. 6th Floor. Gurgaon-122 015. ul. Ghole Road. Mezzanine Floor. 1st floor. T. Randolph. Nagar. 2nd Floor B1638BGF Olivos Provincia de Buenos Aires Argentina Tel : + 5411-4837-7600 Fax : + 5411-4837-7667 www. 22.u. H. Plot No.94. Kensington A wing-lT/ITES SEZ. Suite 400. Kolkata-700 071 Tel : + 91-33-4011-8200 / 28 Fax : + 91-33-2283-0597 Pune CRISIL Limited. Mumbai-400 076 Tel : + 91-22-3342-3000 Fax : + 91-22-3342-3810 CIty oFFICe unit no 104 & 201. Hiranandani Business Park. 1187/17. Haryana Tel : + 91-124-460-5400 Fax : + 91-124-560-5505 Hyderabad Uma Chambers. London EC2N 2BR uK. 10th Floor. 2nd floor. Central Avenue.C.S.600 017 Tel : + 91-44-4226-3400 Fax : + 91-44-4226-3001 new Delhi The Mira. Pune-411 005 Tel : + 91-20-4018-1900 + 91-20-2553-9064/67 Fax : + 91-20-4018-1930 OVeRSeAS OFFICeS IREVNA LIMITED London #33 Throgmorton Street.D. Venkatnarayana Road. New York 10036.o poland Renaissance Business Centre. Powai. 1st Floor.CRISIL LOCATIONS ReGISTeReD OFFICe CRISIL House.706. New York 1560 Broadway. Świętego Mikołaja 7 50-125 Wrocław.A Tel : + 1-877-747-3862 Tel : (Outside uSA) : + 1-646-292-3520 Fax : + 1-646-292-3521 www. 9 & 10 Nagarjuna Hills. Chennai . Hyderabad-500 082 Tel : + 91-40-2335-8103 / 05 Fax : + 91-40-2335-7507 Kolkata Horizon. Chennai-600 017 Tel : + 91-44-4226-3000 Fax : + 91-44-4226-3001 TVH -Beliciaa Towers 3rd Floor. R. Maruti Industrial Area. Ishwar Nagar Near Okhla Crossing.23. Tel : + 44-870-333-6336 Fax : + 44-(0)20-156-5001 IREVNA LLC. Ltd Plot no. ulsoor Road. Chennai – 600 008. 4th Flr. Nagar. 3rd floor. Matadahalli. Block-B.com Chicago 601 W. 1st Block.irevna. ................................................/Ms...........................................or failing him Mr............................. Note : This form...30 p........2011........ of Shares held ....... at Rangaswar Hall.. Full Name of the Member (in BLOCK LETTERS) ............................... ... 2011 I hereby record my presence at the TWENTY FOuRTH ANNuAL GENERAL MEETING of the Company held on Friday........... Signature .......................m.... Revenue stamp of 15 paise Signed this .............................................. Mumbai – 400076......... Yashwantrao Chavan Pratishthan................ Next to Sachivalaya Gymkhana.................................. ............................... April 15....................................................................... of ...................................... Hiranandani Business Park........... Jagannath Bhosale Marg.............................................................................................................................. Gen............................. ......................................... CrISIL LIMIteD Registered Office: CRISIL House....... duly completed and signed...................................................................... Powai........ Yashwantrao Chavan Pratishthan....... Regd........................... of ........................ I/We. Mumbai 400021.... April 15............ No........... Gen................/Ms..............m....... proXy ForM Regd................................................of ...................................................................... Full Name of the Proxy (in BLOCK LETTERS) ..... day of .................................................Registered Office: CRISIL House. 4th floor........................................................... Powai........................................ Mumbai 400021................ 4th floor......... Mumbai – 400076.......... Jagannath Bhosale Marg............................................................................. 2011 at 3.. Central Avenue.................... Folio No........................... Hiranandani Business Park...................................... 2011 at 3..................................................... at Rangaswar Hall...... ..... Next to Sachivalaya Gymkhana....................................................................... of Shares held ................................... must be deposited at the Registered Office of the Company not less than 48 hours before the time of the meeting.............. as my/our/proxy to vote for me/us on my/our behalf at the TWENTY FOuRTH ANNuAL GENERAL MEETING of the Company to be held on Friday........................ Folio No.... ATTeNDANCe SLIP (To be handed over at the entrance of the meeting hall) 24th Annual General Meeting – April 15.......................... Central Avenue.................................... being member/members of CRISIL LIMITED hereby appoint Mr............................30 p............................................................... Member’s/Proxy’s Signature....................No........ . .Printed on 100% recycled paper. Mumbai . Powai.400 076.standardandpoors.com Printed at GP Offset Pvt Ltd . Hiranandani Business Park.com | www.crisil. India.CRISIL Limited CRISIL House. Central Avenue. Phone: +91 (22) 3342 3000 www.