Ready for the next level.

6,000
mark in credit ratings.
17,500 SME
11 of the world’s
top 15 investment
are Irevna’s clients. Strong growth in
Polish and Argentinian
the largest
operations. Poised to become
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
Acquired Pipal Research 11 of the world’s
to expand our footprint top 15 investment
globally.
in the global corporate sector. banks are Strong
17,500 SME Irevna’s growth
11 of the Acquired
world’s top clients. in Polish and
15 investment
are Irevna’s clients.
Pipal 11 of the
Argentinian
operations.
Strong growth in
Polish and
Research
to expand
world’s Poised to
Argentinian top 15 become
operations. our footprint the largest
investment
Poised to become in the global provider
the largest corporate banks
provider are Irevna’s of equity
sector clients. research
of equity space.
research Firmly Strong in India.
Acquired
in India in growth
Pipal
positioned to
2011 make Research
Acquired markets to expand
Pipal function our footprint
in the global
Research
to expand better corporate
sector.
our footprint globally. Firmly
in the global
positioned
corporate
sector space. to make
Firmly positioned
to make markets
function better
markets globally.6,000
function better globally.
6,000 the world’s top 15 investment
in Polish banks
17,500
SME
ratings. mark
ratings.
in credit
are Irevna’s
mark
are clients. Poised to
ratings.
and
in credit 17,500
SME
Poised
Irevna’s 11
of the
Strong become the
growth largest
ratings. clients. in Polish
world’s
11 of
the Strong
top 15 and equity
 contents For more details visit [Link]

corporate overview
02 - CRISIL - Making markets 10 - Events
function better
12 - Publications
04 - CRISIL’s Businesses
14 - Corporate Sustainability

2010 - a glance
08 - CRISIL Consolidated Ten Initiatives
Year Financial Highlights

financial statements
16 - Board of Directors 53 - Standalone financial
statements
20 - Directors’ Report
85 - Consolidated financial
statutory reports

30 - Management Discussion statements

and Analysis Report
111 - Notice
36 - Auditors’ Certificate for
Corporate Governance 115 - Proxy Form and Attendance
Slip
38 - Report of the Directors on
Corporate Governance

48 - General Information for

Members
 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 globally-
diversified 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 How We Add Value
infrastructure domain.
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
decisions. Our offerings allow markets and market
At the core of our credibility, built up

participants to become more assiduously over the years, are our values:

     transparent and efficient - Integrity,

by mitigating
Independence, Analytical Rigour,
and managing risk, taking pricing decisions,
Commitment and Innovation.
   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 Global Research CRISIL

& Analytics Infrastructure
Advisory
Bank Loan Ratings
Irevna
SME Ratings
Pipal Research
CRISIL Real Estate
Star Ratings

Education Grading

Global Analytical CRISIL Risk

INDIA RESEARCH
Centre Solutions

CRISIL Centre for

Economic Research

Industry Research

Capital Market
Research
Mutual Funds
Fixed Income
Research & Valuation
Equities

* Wholly-owned subsidiary - CRISIL Risk and Infrastructure Solutions Limited

04
 Ready for the next level.

A.
Ratings

CRISIL is India’s first, largest, and most B1.a. Irevna

prominent credit rating agency. CRISIL Irevna provides high-end financial
pioneered the concept of credit rating in research and analytics to investment
India more than 20 years ago, and has banks, insurance companies, and
played a pivotal role in the development asset management firms across
of India’s debt market. CRISIL has rated the world. Irevna’s teams of highly-
more than 10,000 borrowers, covering trained professionals at research
around 32,400 debt instruments of a value centres in Buenos Aires in Argentina,
exceeding Rs.36 trillion. CRISIL has also Chennai and Mumbai in India, and
rated around 17,500 Small and Medium Wroclaw in Poland, provide coverage
Enterprises (SMEs), and has the highest across time zones to the world’s
number of SME ratings outstanding in major financial centres. Irevna is now
India. Today, CRISIL rates two-thirds of preparing to commence operations
corporate bonds outstanding in India. in China.
CRISIL’s Global Analytical Centre
(GAC) supports the Global Resource
Management initiative of Standard &
Poor’s (S&P). GAC supports analytical Works with 11 of the top 15
processes and information processing, global investment banks.
executes complex modelling assignments,
Best-in-class service quality
and assists Standard & Poor’s (S&P) in
improving workflow efficiencies. and talent base.
At the right locations and in
the right time zones to deliver
maximum value to clients.
Rs. 36 trillion of debt rated.
Market share in bank loan
ratings exceeds 50 per cent.
B1.b. Pipal Research
Rates two-thirds of bonds
Pipal Research is a leading
outstanding in India. knowledge services firm delivering
Highest number of outstanding high-quality financial and business
SME ratings in India. research to organisations worldwide.
Its clients include leading global
firms in the telecommunications,
technology, consumer packaged
goods, and industrial sectors, and
in the financial services space. Pipal
has three research centres in India
(Gurgaon, Noida and Bangalore),
B. and an office in Chicago.

research CRISIL acquired Pipal in December

2010. Pipal’s services, clients and
delivery locations are complementary
B1. Global Research and Analytics to Irevna’s, enabling the combine to
Services strengthen its leadership in the global
CRISIL is the leading provider of high- research & analytics.
end research and analytics to the
world`s largest financial institutions
and leading global corporations.
Operating from seven research Client list includes 30 fortune
centres around the world, CRISIL’s
500 companies, across a range
Global Research & Analytics
business delivers insight driven high of industries.
end financial and business research.

05
 CRISIL Limited
corporate overview
CRISIL - Making markets function better Crisil Businesses

crisil businesses (contd.)

B2. India Research B2.c. Capital Market Research

B2.a. CRISIL`s Centre for Economic
Research (C-CER)
CRISIL Centre for Economic
Research (C-CER) offers a credible, Largest independent equity
objective, and analytical view on the research house in India.
Indian economy. It also provides
Official provider of valuations to
premium services and products
based on economic analysis. all mutual funds in India.
C-CER’s core strength is its solid Helps employees’ provident
understanding of macroeconomics, fund organisation (epfo) select
financial economics, public finance,
fund managers.
and environmental economics,
coupled with its deep knowledge of
real-world dynamics.
Mutual Fund Research – CRISIL
Fund Services
Among the most credible CRISIL Fund Services (CFS) is
commentators on the Indian India’s leading provider of services,
economy. tools, and indices to mutual funds,
provident funds, and wealth
The foundation of crisil’s managers. Its mutual fund rankings
integrated research capabilities. have been the industry standard for
mutual fund evaluation in India for
more than a decade.

Fixed Income Research & Valuation

CRISIL provides valuations for all
B2.b. Industry Research
debt instruments to the entire mutual
CRISIL Research is India’s largest funds industry. Banks, custodians,
independent research house, pension funds, and life insurers also
providing comprehensive research use this service to value their fixed
coverage to more than 1200 Indian income portfolios.
and global customers. It also provides CRISIL is the sole provider of
incisive customised research, standard indices for debt and hybrid
enabling customers to take sharper portfolios. All fund houses benchmark
business and investment decisions. the performance of their funds to
With “Cutting Edge”, its recently- these indices.
introduced service, CRISIL Research
is adding a globally unique dimension Equity Research
of customisability to the provision of CRISIL Equity Research provides
Research services. independent equity research and
initial public offer (IPO) grading.
CRISIL has released 81 research
Provides coverage on 65 reports, many of them on companies
industries. that were previously thinly
researched or had no research at
90% of India’s commercial all outstanding. CRISIL received
banks are our customers. a prestigious mandate to publish
reports on companies listed on the
National Stock Exchange of India.

06
 Ready for the next level.

C.
CRISIL Risk and Infrastructure Solutions (CRIS)

CRIS is a wholly-owned subsidiary of CRISIL. CRIS offers a wide range of solutions focused on
infrastructure policy, corporate advisory, integrated risk management and associated consulting
services, to a variety of clients including government bodies, multilaterals, banks, and infrastructure
companies. CRIS operates through its divisions CRISIL Infrastructure Advisory and CRISIL
Risk Solutions.

Practical and innovative

solutions in 31 countries.
Client roster includes 50
financial institutions in India and
abroad.
Flagship product, ram, is
India’s leading internal risk
rating solution.

C1. 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, urban infrastructure, and transportation.

C2. 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.
It partners leading public and private sector banks for enterprise risk management and
Basel II preparedness.

07
 CRISIL Limited
corporate overview
CRISIL Consolidated Ten Year Financial Highlights

CRISIL Consolidated Ten Year

Financial Highlights
Income from Operations EBITDA
(Rs. in Crores) (Rs. in Crores)

628 Other Income 73

537
515 23

29% 27%
22

cagr 404 cagr 9 215

199
7 179
287
117
5 3 2
140 3 4 81
35 39
119 32 30 30
85
68 71

Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec
‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10
(9 months) (9 months)

PROFIT AFTER TAX

(Rs. in Crores)

205

161

cagr 39% 141

84

61

25
20
19
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 DIVIDEND

(Rs. in Crores) (Rs. per share)

100
4254

3212

cagr 42% 2663

1773
100 100
1521 70
1008

438 25
15
312 12.5
196 10 10 10
158 6.5

Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec
‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10
(9 months) (9 months)
08 Special Dividend
 Ready for the next level.

EPS NET WORTH PER SHARE

(Rs.) (Rs.)

285 600
556

223 495

cagr 37% 195

383

118 280
88 200
165
35 146
31 31 126
27 110
19

Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec
‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10
(9 months) (9 months)

return on net worth

(%)

50

44
41

38
36

23 23
21
20
17

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 PAT PER EMPLOYEE

(Rs. in Lakhs) (Rs. in Lakhs)

29.35 8.63
28.94
27.20
7.80
25.57 7.59

22.93 5.17
22.12
21.53
4.79
20.15
4.36 4.34
19.96 3.80
19.26 3.50
3.14

Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec* Mar Mar Mar Mar Dec Dec Dec Dec Dec Dec*
‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘02 ‘03 ‘04 ‘05 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10
(9 months#) (9 months #)
# Annualised * Excluding Pipal
09
 CRISIL Limited
2010 - a glance
Events Publications Corporate Sustainability Initiatives

events

CRISIL and S&P seminar, The New Normal, Mumbai

(From L to R) Deven Sharma - President, Standard & Poor’s, and Chairman, CRISIL, Raman Uberoi
- Senior Director, CRISIL Ratings, Thomas Schiller - Executive Managing Director and Region Head,
Standard & Poor’s, Asia Pacific, Roopa Kudva - Managing Director and Chief Executive Officer,
CRISIL, and Region Head, South Asia, Standard & Poor’s, William Hess - Director, Sovereign and
International Public Finance Ratings, Standard & Poor’s, at the seminar, “The New Normal: The
Changing Face of Financial Markets”, organised jointly by CRISIL and Standard & Poor’s, to discuss
the fundamental shift in the functioning of economies, governments, regulators, and businesses, and
how the world is adjusting to this new reality.

Mr. Pranab Mukherjee, Minister for Finance,

Government of India, addresses the Second India
PPP Conclave, organised by the Department
of Economic Affairs, Ministry of Finance, in
cooperation with the World Bank. As knowledge
partners to the event, CRISIL provided valuable
CRISIL knowledge partner at the India PPP insights into the renewable energy space.
Conclave, Delhi

CRISIL - Irevna : Global Derivatives Trading and Risk CNBC TV -18 CRISIL Mutual Fund of the Year Award
Management conference 2010, Paris 2010, Mumbai

(From L to R) Anshuman Prasad - Head, Global (From L to R) K N Vaidyanathan - Executive

Derivatives, Irevna, Vishal Thakkar - Director, Director of the Securities and Exchange
Business Development - Europe, Irevna, Chris Board of India (SEBI), Roopa Kudva, and
Graham - Director, Business Development C B Bhave - Chairman, SEBI. The awards are
- North America, Irevna, at the Global based on CRISIL’s objective and analytically
Derivatives Trading and Risk Management rigorous fund ranking methodology.
2010 conference sponsored by CRISIL. Irevna
displayed its cutting edge research in the
derivatives and risk management domains.
10
 Ready for the next level.

CRISIL and S&P: World Bank Singapore Infrastructure Finance Summit 2010, Singapore

(From L to R) Nguyen Hong Truong - Vice Minister for Transportation, Vietnam, Li Zuwei - Chairman,
Chongqing Expressway Group, Sinthya Roesly - President Director, Indonesia Infrastructure
Guarantee Fund, Kamran Khan - Program Director, World Bank-Singapore Urban Hub, Kevin Lu
- Regional Director, Asia Pacific, Multilateral Investment Guarantee Agency, Mark Rathbone - Asia
Leader, Global Capital Projects & Infrastructure team, PricewaterhouseCoopers, James Harris -
Head, Asia Infrastructure and Project Finance Practice, Hogan Lovells and Pratyush Prashant -
Director, CRISIL Risk and Infrastructure Solutions, at a panel discussion on “Showcase of Regional
Government Initiatives - Pushing the Boundaries”. CRISIL and Standard & Poor’s were associate
sponsors at the World Bank-Singapore Infrastructure Finance Summit 2010, showcasing our global
local expertise.

CRISIL and NSE seminar: Independent Equity

Research, Mumbai CRISIL Real Estate Star Ratings launch, Mumbai

(From L to R) K G Gupta - Managing Director, Roopa Kudva and Akash Deep Jyoti - Head,
GKB Ophthalmics, Chitra Ramakrishna - Joint Corporate & Infrastructure Ratings, CRISIL
Managing Director, National Stock Exchange Ratings, at the event to launch CRISIL Real
of India, Roopa Kudva, Prashant Jain - Estate Star Ratings (CREST). CREST provides
Executive Director & Chief Investment Officer, a city-specific, all-round assessment of real
HDFC Asset Management Company, Avinash estate projects and helps buyers benchmark
Deshpande - Whole-time Director, Eimco and identify quality projects within a city.
Elecon, at a seminar “Independent Equity
Research: Empowering Investors”, organised
jointly with National Stock Exchange (NSE),
aimed at educating retail and institutional
investors about the benefits of independent
equity research.

11
 CRISIL Limited
2010 - a glance
Events Publications Corporate Sustainability Initiatives

publications

CRISIL ratings

1. SME Insights Series

CRISIL’s SME Insight Series provides unique
perspectives on the working of SMEs and the
challenges they face. Four volumes on topical
themes have been published.

2. Insight into Risk - Pharmaceuticals Sector

An overview and outlook on key trends in the
credit quality of India’s pharmaceutical sector.

3. Insight into Risk - CRISIL Default

Study 2009
A detailed analysis of default rates,
showcasing CRISIL Ratings’ strong default-
prediction abilities. For the first time in India,
the default and transition statistics of an
agency’s rated entities have been computed
using monthly data, giving investors an even
clearer picture of the performance of CRISIL’s
ratings.

4. Insight into Risk - Housing Finance Sector

A snapshot of key trends in the housing
finance company (HFC) segment in India, and
the financials of CRISIL-rated HFCs.

CRISIL research

5. SME: Sector and Cluster Attractiveness

A report on key SME sectors and clusters,
covering the demand growth drivers, outlook,
factors influencing the competitiveness of
clusters, and success stories of the various
SME sectors.

6. 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, and updates key
developments on a monthly basis.

7. Urban India Construction Reports

A compendium on 10 cities in India, published
jointly by McGraw-Hill Construction and CRISIL
Research. The reports provide an overview of
market size and funding patterns, and carry
details on key projects and the profiles of key
Indian construction sector players.

12
 Ready for the next level.

CRISIL research (contd.)

8. 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, to provide an unbiased scorecard of
active and passive fund management.

9. Skilling India: The Billion People Challenge

The report highlights the growth in India’s
working population, the current trends in the
existing labour participation and unemployment
rate, and the key challenges (labour mismatch
and shortage) that could affect India’s
economic growth and create a fiscal burden to
support the unemployed.

10. India: Raising the Growth Bar

An insightful publication on how the inherent
strength of India’s domestic demand will help
it sustain 8.4 per cent annual growth over the
next five years, and identifies five supply-side
bottlenecks that would need to be addressed
for placing India on a sustained 10 per cent
growth trajectory.

11. Ecomonitor:
A special monthly publication on Indian macro-
economy, industry and financial markets for
private circulation amongst senior policy makers
and bank chairmen.

CRISIL Infrastructure Advisory

12. Indian Power Sector

12.
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,
jointly organised by the Ministry of Power,
Government of India, and the Federation of
Indian Chambers of Commerce and Industry
(FICCI).

13. PPP Online Toolkit and Compendium

A web-based PPP toolkit, and a compendium
of PPP case studies, were developed in
association with Economic Consulting
Associates (ECA), UK. These were launched
by the Finance Minister, Mr. Pranab Mukherjee,
at the Second India PPP Conclave, organised
by the Department of Economic Affairs,
Ministry of Finance, in cooperation with the
World Bank.
13
 CRISIL Limited
2010 - 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.
green initiatives

CRISIL House received

leed India Platinum rating,
the highest green building
certification.

CRISIL House, the state-of-the-art, eco-friendly building in Mumbai, received the Leadership in Energy
and Environment Design (LEED) India Platinum rating. This is the highest green building certification
under the LEED rating system. CRISIL House has also been certified one of the most energy-efficient
buildings in India.

As part of its green initiative, CRISIL also consolidated its information technology infrastructure,
driving a 40 per cent reduction in its server footprint.

b.
Financial inclusion

CRISIL Ratings partnered with Intellectual Capital Advisory Services Pvt Ltd at a two-day seminar,
‘Srijan Financial Inclusion Forum 2010’, attended by a large number of micro finance institutions
(MFIs), bankers and lenders to MFIs, investors and multi-lateral organisations. The partnership entails
providing critical inputs and perspectives on the MFI sector to enable a better understanding of the
issues affecting them.

c.
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. This tie-up helps
address a key challenge faced by small entrepreneurs: access to knowledge and expertise.

14
 Ready for the next level.

d.
Making and Facilitating Donations

CRISIL’s culture of giving

continues - steadily growing
employee contributions improve
the lives of the underprivileged.

CRISIL partners a number of non- CRISIL House, the

governmental organisations (NGOs) to
ensure that CRISILites have many options state-
and opportunities to donate.
of-the
Our ‘Joy of Giving’ Week was held in two
phases: ‘Pledge your Eyes’, and ‘Clothes and
-art,
Toys Donation’. Introduced in CRISIL for the
first time, the ‘Pledge your Eyes’ campaign
eco- friendly
received an overwhelming response, with
more than 200 persons–CRISILites and
building in Mumbai,
their family members–registering and received the Leadership in
pledging their eyes. The ‘Clothes and Toys Energy and Environment Design
Donation’ drive, launched in partnership with
a number of NGOs, saw more than 5400 (LEED) India
articles of clothing and toys being donated
Platinum
by CRISILites. These were distributed
among the underprivileged during Diwali.
[Link] is
the highest green
Under the McGraw-Hill initiated Global
Volunteer Day (GVD) activities, CRISIL building certificatio
conducted the ‘Build’ and ‘Tree Plantation’
drives. Under the same initiative, in under theLEED
partnership with SMILE Foundation, rating   system.
CRISILites across locations spent a day with
underprivileged children, playing games, CRISIL House has
Balanced growth includes
and organising dance and art competitions. also been certified
More than 160 CRISILites participated in the
one of the social responsibility, a
GVD activities, spreading joy and happiness
among the needy. mosten key element of CRISIL’s
CRISIL also assisted employees to form erg
volunteer groups, and enabled them to
choose and work on specific projects or with y- corporate philosophy.
NGOs. In 2010, three such groups were
formed to work on projects/with NGOs of eff
their choice. ic
CRISIL’s association with Give India for the
payroll giving programme continues; close
ient
buildings
to 300 employees have signed up.
in India.
15
 CRISIL Limited
statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

board of directors

1 3

1. Mr. Deven Sharma, Chairman 2. Mr. BV Bhargava, Director

Deven Sharma is President of Standard Mr. BV Bhargava has been associated
& Poor’s, a part of The McGraw-Hill with CRISIL since 1992, and was
Companies, and the world’s foremost Chairman from May 1999 to July 2008.
provider of independent credit ratings. He is Chairman of CRISIL’s Rating
Mr. Sharma joined Standard & Poor’s Committee. He was associated with
in 2007 as Executive Vice President, ICICI Limited for three decades, and
Investment Service and Global Sales. retired as Vice-Chairman and Managing
Before joining Standard & Poor’s, he was Director in 1996. He was associated with
Executive Vice President, Global Strategy, the Tariff Commission of India and the
at The McGraw-Hill Companies for five Indian Investment Centre, New York. He
years. is on the Board of ICICI Lombard General
Insurance Company Limited, Supreme
Mr. Sharma joined The McGraw-Hill
Industries Limited, Grasim Industries
Companies in January 2002 from
Booz•Allen & Hamilton, a global Limited, L&T Infrastructure Finance
management consulting company, where Limited, L&T Finance Holdings Limited,
he was a partner. During his 14 years and other companies.
with that firm, he provided guidance to
client companies on business strategy 3. Mr. HN Sinor, Director
and globalization, as well as on branding Mr. HN Sinor started his career in 1965
and sales management. Much of his with Central Bank of India and in 1969
experience includes work with global moved to Union Bank of India where he
corporations in U.S., Latin America,
worked for 28 years. In 1996, he was
Europe and parts of Asia. Before joining
appointed Executive Director of Central
Booz•Allen, Mr. Sharma worked with
Bank of India. In 1997, he joined ICICI
manufacturing companies, Dresser
Industries and Anderson Strathclyde. Bank as Executive Director and took over
later as Managing Director and CEO of
Mr. Sharma holds a bachelor’s degree from the bank. After the merger of ICICI with
the Birla Institute of Technology in India, ICICI Bank, in March, 2002, he worked
a master’s degree from the University as Joint Managing Director until May
of Wisconsin and a doctoral degree in 2003. Thereafter, he joined the Indian
Business Management from Ohio State Banks’ Association as Chief Executive
University. and held this position until July 2008. He
was appointed Chief Executive Officer of
He has authored several publications on the Association of Mutual Funds of India
competitive strategy, customer solutions,
(AMFI) in February 2010. He is also on
sales and marketing. Mr. Sharma is also
the boards of 3i Infotech Limited, ICICI
a member of the Council on Foreign
Lombard General Insurance Company
Relations and the International Advisory
Board of the British-American Business Limited, ICICI Venture Funds Management
Council and serves on the Asia Society Co. Limited, Tata Investment Corporation
Business Council. Limited, Tata Motors Finance Limited,
16
 Ready for the next level.

4 6

Tata Capital Limited, and several other hedge fund (Quantitative Financial
Companies. Strategies) for three years. He has worked
with ICICI from 1987 to 2007 in a variety
4. Ms. Rama Bijapurkar, Director of positions, including Corporate Planning,
Project Finance, Rural Finance, and
Ms. Rama Bijapurkar is a recognised
Treasury, and was a member of its Board of
thought leader on marketing strategy and
Directors from 2001 to 2007. From October
consumer related issues in India. She is an
2007 to August 2010, he assisted ICICI in
independent management consultant and
setting up a philanthropic foundation, the
works across a wide range of organisations
ICICI Foundation for Inclusive Growth,
in diverse sectors helping them develop
and served as its founding President. He
market-focused business strategy. Her
is now the Chairman of the Boards of
prior work experience in market strategy
Sughavazhvu Health Care, CARE India,
consulting and market research includes
and IFMR Trust, and is closely involved in
McKinsey & Co., MARG (Marketing and
the evolution of these three organisations.
Research Group) and MODE Services.
She is an independent director on the Dr. Mor is currently also an independent
board of some of India’s most respected member of a few other Boards including
organizations and is also a visiting faculty IKP Trust; IKP Centre for Technologies in
and on the board of governors at the Indian Public Health; IKP Centre for Advancement
Institute of Management (IIM) Ahmedabad, in Agricultural Practice; and the Institute
from where she also holds a post graduate for Financial Management and Research.
diploma in management. She also holds a In the past he has served as the Chairman
[Link]. (Hons) degree in Physics from Delhi of the Fixed Income Money Market and
University. She is the author of “Winning in Derivatives Association of India for two
the Indian Market” (John Wiley and sons), years, and as a Board Member of Wipro
the Indian edition of which is titled “We are Limited for five years.
like that only - Understanding the Logic of
Consumer India” (Penguin).
6. Mr. Thomas Schiller, Director
Mr. Thomas Schiller is Executive Managing
5. Dr. Nachiket Mor, Director
Director and Region Head for Standard
Dr. Nachiket Mor is a Yale World & Poor’s business in Asia-Pacific. He
Fellow; has a Ph.D. in Economics from assumed this position in August 2004
the University of Pennsylvania with a and is responsible for further developing
specialization in Finance from the Wharton Standard & Poor’s leading position in
School; an MBA from the Indian Institute the region’s financial markets. He helped
of Management, Ahmedabad; and an build Standard & Poor’s strong regional
undergraduate degree in Physics from the franchise through a series of management
Mumbai University. and market development positions held
over the years, including Tokyo Office
While completing his Ph.D., he was
Head, Chief Marketing Officer for Asia-
associated with a Philadelphia-based
17
 CRISIL Limited
statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

board of directors (contd.)

7 9

Pacific, and, most recently, Managing American Bar Association. He is a member

Director and Region Head for Standard of Law Society of England & Wales,
& Poor’s in Japan and Korea. He joined Chartered Institute of Arbitrators, London,
Standard & Poor’s in 1987 as a Corporate and the Supreme Court Bar Association.
analyst in the Industrial Ratings group. He is a consultant to the World Bank and
Organisation for Economic Co-Operation
7. Mr. David Pearce, Director and Development (OECD).
Mr. David Pearce joined Standard He is the country representative for
& Poor’s in 1997 when McGraw-Hill Sweet & Maxell’s International Company
acquired Micropal, where he was Group & Commercial Law Review, and has
Financial Controller. Following this, he authored India chapters in two books,
served as Finance Director for Standard “Product Liability in Asia Pacific” and
& Poor’s Funds Services. More recently “Employment Laws in Asia”. He holds
Mr. Pearce was Vice President and bachelor’s degrees in commerce and law
European Controller for the McGraw- from Delhi University. He is admitted to
Hill Companies. In July 2002, he took up practice law in India as an Advocate and
the position of Vice President, European as a Solicitor of the Supreme Court of
Finance for Standard & Poor’s providing England and Wales.
strategic and managerial direction for
Standard & Poor’s European financial
9. Ms. Roopa Kudva, Managing Director
operations. In early 2006, he was promoted
and Chief Executive Officer
to Senior Vice President, Finance for
Standard & Poor’s Europe/Asia. Ms. Roopa Kudva is Managing Director
and Chief Executive Officer of CRISIL
and Region Head, South Asia, Standard &
8. Mr. Ravinder Singhania, Director
Poor’s. Prior to this, she was the Executive
(Alternate to Thomas Schiller, David Pearce Director and Chief Rating Officer of CRISIL.
and Deven Sharma) She is also a member of Standard & Poor’s
Mr. Ravinder Singhania is the Managing Asia-Pacific Executive Committee. She
Partner of Singhania & Partners, joined CRISIL in 1992. She has worked
Solicitors & Advocates. Mr. Singhania in emerging markets in the Mediterranean
currently serves on the boards of and Middle Eastern countries during her
several multinational companies’ secondment to Standard & Poor’s, Paris,
Indian subsidiaries such as America as Director, Financial Institutions Ratings.
Online, Fedders Corporation, National Previously, she worked at Industrial
Instruments, and American Bureau of Development Bank of India for six years in
Shipping, as well as listed companies the Project Finance department. She is a
such as Unitech Limited. He is a former graduate in Statistics and a post-graduate
governing body Member of the Indian in management from IIM, Ahmedabad.
Council of Arbitration, and Vice Chairman
of the Asia Pacific Committee of the

18
 Ready for the next level.

Senior Management
Mr. Raman Uberoi Senior Director - Ratings
Mr. GV Mani Senior Director - Global Research and Analytics
Mr. Mukesh Agarwal Director - Research
Mr. M Ramsekhar CEO - CRISIL Risk and Infrastructure Solutions Limited
Mr. Arun Panicker Senior Director - Operations

Allotment Committee Rating Committee

Dr. Nachiket Mor, Chairman Mr. BV Bhargava, Chairman
Ms. Rama Bijapurkar Ms. Roopa Kudva
Ms. Roopa Kudva
Auditors
Audit Committee Messrs. S. R. Batliboi & Co.

Mr. HN Sinor, Chairman

Mr. BV Bhargava Solicitors
Dr. Nachiket Mor Messrs. Wadia Ghandy & Co.
Mr. David Pearce
Company Secretary
Compensation Committee Mr. Shrikant Dev

Mr. BV Bhargava, Chairman

Mr. Deven Sharma Bankers
Ms. Rama Bijapurkar ICICI Bank Limited
Mr. Thomas Schiller Andhra Bank
Mr. HN Sinor Indian Overseas Bank

Investment Committee Share Transfer Agent

Karvy ComputerShare Private Limited
Mr. BV Bhargava, Chairman
Karvy House, 21, Avenue – 4,
Mr. Thomas Schiller
Plot No.17 to 24, Near Image Hospital
Mr. David Pearce Vittalrao Nagar, Madhapur.
Ms. Roopa Kudva Hyderabad – 500 081

Investor Grievance Committee Registered Office

Mr. BV Bhargava, Chairman CRISIL House,
Mr. Thomas Schiller Central Avenue,
Hiranandani Business Park,
Ms. Roopa Kudva
Powai, Mumbai – 400 076.

19
 statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

directors’ report
Dear Members,
The Directors are pleased to present the 24th Annual Report of CRISIL Limited, along with the audited
accounts for the year ended December 31, 2010.

Performance
A summary of the Company’s financial performance in 2010 is given below:

(Rupees Lakh)
Year ended Year ended
December 31, 2010 December 31, 2009
Total Income for the year was 60,233.44 46,445.36
Profit before depreciation and taxes was 26,918.21 20,422.09
Deducting depreciation of 2,020.85 1,387.93
Profit before tax was 24,897.36 19,034.16
Deducting taxes of 5,321.90 4,000.44
Profit after tax was 19,575.46 15,033.72
The proposed appropriations are:
Dividend 14,417.96 7,225.00
Corporate Dividend Tax 2,387.67 1,227.89
General Reserve 1,957.54 1,503.37
Balance carried forward is 23,553.37 22,741.09

DIVIDEND
The Directors recommend, for approval of the members at the Annual General Meeting to be held on April
15, 2011, payment of final dividend of Rs. 25 per share for the year under review. During the year, the
Company paid first, second and third interim dividends of Rs. 25 per share each. The Company also paid
a special dividend of Rs. 100 per share. The total dividend for the year works out to Rs. 200 per share as
against Rs.100 per share in 2009.

BUYBACK OF EQUITY SHARES

The Board of Directors, at its meeting held on September 9, 2010, approved the buyback of equity shares
of the Company for a total consideration not exceeding Rs. 80 crore and at a price not exceeding Rs. 6500
per equity share of Rs.10 each from the open market through the stock exchanges. The Company received
shareholders’ approval through postal ballot for the buyback on October 18, 2010 and issued a public
announcement on October 20, 2010.

The buyback commenced on November 3, 2010 and closed on November 10, 2010. The Company bought
back 128,156 equity shares at an average price of Rs. 6199.87 per equity share.

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. Particulars No. of shares Share Capital (Rupees)

1. Paid up Equity Share Capital (Pre Buyback) 72,25,000 7,22,50,000
2. Total Equity Shares bought back 1,28,156 12,81,560
3. Paid up Equity Share Capital (Post Buyback) 70,96,844 7,09,68,440

20
 Ready for the next level.
Cros
sed
mile
sto ne of
17, 500 small and medium
enterprises (SME)

7800
ratings;

new SME Strong credibility, a track record of being first

ratings assig- to market with new products and processes,

ned in 2010 and a large customer base have geared
Launched
CRISIL for the next level.
CRISIL Real
E s t a t e Star
(CRE ST)
Rating, a f i r s t -of-
its-kind service for retail
investors in the
real estate
sector
Review of Operations
A. RATINGS
Highlights

Over 5500 bank loan ratings (BLR) outstanding, the largest number of BLR in India; 2434 new
ratings assigned during the year

Crossed milestone of 17,500 small and medium enterprises (SME) ratings; 7800 new SME ratings
assigned in 2010

Launched CRISIL Real Estate Star (CREST) Rating, 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, except for the last
quarter of the year, when liquidity constraints led to a sharp increase in interest rates and impacted
fresh debt issuances. India’s corporate bond market was active during the year, with interest rates at the
short and long-term ends remaining attractive, and the investment climate turning positive. Issuances
of commercial paper (CP) gathered momentum, with volumes growing by 50 per cent over the previous
year. There were also bond issuances from entities rated ‘A’ and ‘BBB’ by CRISIL, a positive trend
for India’s corporate bond market. Bank loan ratings maintained steady growth. The number of SME
Ratings continued to grow rapidly, backed by increasing acceptance by banks.

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, and on improving data accuracy and enhancing support for
its products.

21
 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.
However, 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. CP issuances are also expected to increase, driven by the introduction of base rates in the
banking sector. The BLR market is likely to remain steady in 2011, as banks become increasingly
compliant with Basel II requirements. The demand for SME ratings is expected to remain robust in 2011.

GAC’s operations are expected to maintain their growth momentum in 2011, fuelled by recovery in the
global credit markets and S&P’s continuing focus on extending its leadership in the global financial
information, data and, analytics businesses.

Operations

CRISIL Ratings maintained its market leadership in 2010, backed by a steady performance in BLRs
and strong growth in SME ratings. During the year, CRISIL assigned 2434 new BLRs and 7800 SME
ratings. To manage the increasing volume of business, processes and work flows were upgraded to
maintain quality of output and timeliness of delivery. Analytical teams received additional training to
keep them abreast of global and local developments. These measures have ensured that CRISIL is
current on all its ratings and rating publications, despite significantly increased volumes.

In 2010, CRISIL Ratings assigned India’s first-ever ratings for securitisation of toll-road receivables, and
multiple-asset securitisation of microfinance institution (MFI) loans. These set the trend for a number of
similar transactions.

CRISIL Real Estate Star (CREST) Ratings, a first-of-its-kind service for India’s fast-growing real estate
sector, provides a city-specific all-round assessment of real estate projects, and helps buyers benchmark
and identify quality projects within a city. The product has received an encouraging response from all
stakeholders–developers, buyers, investors, and bankers. CRISIL has already evaluated 29 projects
across 10 cities.

CRISIL continued to conduct regular outreach programmes for the benefit of investors and market
participants. Around 150 seminars, including the CRISIL Leadership Series for BLR customers, and
MSME CEO conferences for SMEs, were conducted across the country; 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. CRISIL Ratings’ commentaries, including those on the introduction of
base rate, floating savings rate, capital provision for real estate assets, capital infusion by Government
of India (GoI) in public sector banks, impact of 3G license on telecom companies, and GoI’s fertiliser
policy changes, received extensive media coverage.

GAC continued to be an active partner in S&P’s initiatives to adapt to the evolving regulatory
environment, and penetrated the commercial fixed income data and analytics segment. With the revival
of the global economy, the demand for S&P’s ratings and McGraw-Hill Financial’s data/information
services is expected to grow. This will translate into increasing requirements for GAC support. GAC is
well positioned to strengthen its relationship with S&P, and maintain its growth trajectory.

22
 Ready for the next level.

B. RESEARCH
B.1. GLOBAL RESEARCH & ANALYTICS
B.1.a. 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, risk management and actuarial services,
corporate finance support and financial services analytics by the Black Book of Outsourcing – a
Datamonitor company.

Business Environment

The slowdown in the global financial markets in 2008-09 had a positive impact on the global analytics
and research industry, with customers looking increasingly to research providers such as Irevna as
a strategic means of restructuring their businesses. Demand for Irevna’s services remained buoyant
through 2010, driving robust growth in business volumes. Investments in new services such as actuarial
and risk analytics, and in expanding Irevna’s global footprint, have yielded positive results.

The demand for knowledge services is expected to remain buoyant, as global players look for ways to
grow their revenues and become more efficient. The Irevna-Pipal Research combine is the leader in this
market, and has a proven track record of helping clients increase their revenues, provide deeper and
faster analysis to the market, and improve returns on investment (ROI). This will help us benefit from
the growing demand for our services.

Operations

Irevna continued to lead the global knowledge services industry, adding 22 new clients in 2010,
significantly growing all client accounts, and firmly establishing actuarial and risk analytics as growth
verticals. Irevna’s international research centres in Buenos Aires (Argentina) and Wroclaw (Poland),
together with those in Mumbai and Chennai, facilitate round-the-clock servicing of client requirements,
bridging talent gaps, and providing multi-lingual capabilities. Irevna’s new research centre in China
will help enhance these capabilities, particularly in the Mandarin language, and extend the reach of its
services further.

B.2. INDIA RESEARCH

Highlights

Released 65 CRISIL Independent Equity Research (IER) reports during 2010, providing investors
with high-quality research on listed Indian companies. 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, and monitoring the performance of fund managers

Launched the new, enhanced website, [Link], 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. A number of companies that were raising funds approached CRISIL
Research for valuation reports and sector studies to aid in their decision-making. Opportunities in the
wealth management space also increased because of a shift in the industry’s business model, from
products to value-based advice.

23
 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. It also intensified efforts to reach out to the corporate sector with industry studies
and customised research offerings. The revamped website [Link] gives customers
near-real-time access to research. The website enables clients to track and forecast the performance
of 50 industries, using CRISIL Research data and analysis, and the clients’ own assumptions about
key variables.

Market participants, including listed companies, drove strong demand for CRISIL’s Independent Equity
Research (IER): On a cumulative basis 81 reports have been published, including 20 sponsored by the
National Stock Exchange Investor Protection Fund Trust (NSE IPFT). CRISIL also received a mandate
from NSE IPFT to provide company reports on the entities listed on the exchange. Investors can access
the equity research and company reports sponsored by NSE IPFT at [Link] and [Link]-
[Link].

CRISIL FundServices has been re-appointed by EPFO, to assist in selecting fund managers and
monitoring their performance, for a three-year period. CRISIL FundServices also worked closely with the
Indian mutual fund industry to help it transition to revised valuation norms for money market instruments.

C. ADVISORY
CRISIL carries out its infrastructure advisory and risk solutions businesses through its subsidiary,
CRISIL Risk and Infrastructure Solutions Limited (CRIS).

C.1. CRISIL INFRASTRUCTURE ADVISORY BUSINESS

Highlights

Assisted the Ministry of Rural Development, Government of India (GoI), in a unique and innovative
public-private-partnership project to provide urban services in rural areas (PURA); the pilot project
promises to be the first of many such endeavours

Helped the Ministry of Non-Conventional Energy, GoI, design the framework for exchange of
renewable energy purchase obligations, 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. The energy sector saw significant investments in conventional energy
projects by the public and private sectors, strong policy and regulatory initiatives in the renewable
energy sector, and downstream activity to deploy natural gas available in the country. The urban sector,
however, witnessed a slowdown in investments and activity in 2010, particularly in the second half, as
the first phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) reached maturity.

The outlook for 2011 suggests continued activity in the energy sector, and a revival of deferred projects
in the urban sector. State governments are also expected to undertake infrastructure development
projects.

Operations

Revenues in the infrastructure advisory business were constrained by the slowdown in urban sector
projects investments, although an investment revival in the energy sector mitigated the impact of the

24
 Ready for the next level.

slowdown. To broad-base revenue, CRIS’s advisory business has set up a team to exclusively pursue
opportunities in the transport and logistics sector. The business will also focus on growing its presence
in the mineral and social infrastructure sectors.

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. CRIS’s growing credentials in
renewable energy, transportation and logistics, and oil, gas, and minerals will add to our range of
operations in the private sector.

CRIS’s international operations remain strongly focused on Africa, backed by a slew of assignments
in Namibia, Mozambique and South Africa. 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, is a strong testimonial to CRIS’s credentials as an enabler of
regulatory efficiency.

CRIS made significant progress in 2010 in streamlining operations with respect to staffing, and
improving the quality of its deliverables and collection processes. CRIS expects to carry this momentum
forward into 2011, and benefit from improvements in knowledge management to better harness our
capabilities and experience.

C.2. CRISIL RISK SOLUTIONS (CRS)

Highlights

Won key accounts in the public and private banking sector - portfolio of customers now includes 9
of India’s top 10 banks

Entered the global arena, 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, most banks have invested considerable resources in their processes,
especially those pertaining to credit risk, as part of their initiative to comply with Basel II. Most banks
and financial institutions have now developed strong practices with regard to credit risk, and the
Standardised Approaches of Basel II, and have, therefore, begun to shift their focus to strengthening
other processes, such as those that relate to Advanced Approaches.

CRS believes that banks and financial institutions will, over the medium term, continue to invest in
systems and processes, and move from a compliance-based approach in risk management to a best-
practices-based approach. CRS’s services are, therefore, likely to be in increasing demand.

Operations

CRS remained focused on both consulting and software solutions, and concluded multiple assignments
in both.

CRS added vital enhancements to all its products such as Risk Assessment Model (RAM), Capital
Assessment Model (CAM), CRISIL Operational Risk Evaluator (CORE) and Credit Capital (CC). CRS
aims to expand its product coverage and increase its product usability. 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.

25
 statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

Intensified business development initiatives in countries such as Mauritius, Sri Lanka and Bangladesh,
have also begun to yield results. The business successfully renewed its ISO9001:2008 certification.

D. COLLABORATION WITH S&P

The various business verticals of CRISIL and S&P collaborated extensively.

Key initiatives included a joint seminar by CRISIL Ratings and S&P on ‘The New Normal: The changing
face of Financial Markets’. More than 100 invitees, including media and investors, attended the event.

CRISIL and S&P jointly released the Standard & Poor’s Indices Vs Active (SPIVA) report for India’s
mutual funds industry. This report, a bi-annual publication, compares the performance of indices and
active funds.

CRISIL Infrastructure Advisory collaborated with S&P to co-sponsor the ‘World Bank-Singapore-
Infrastructure Finance Summit’. This summit was organised by the World Bank, 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.

Additionally, CRISIL Risk Solutions worked closely with S&P to market its products and services in
several geographies, including the Middle East and Asia Pacific.

As part of the collaborative efforts, C-CER published 11 reports/articles on Asia-Pacific economies

for S&P.

E. CRISIL CENTRE FOR ECONOMIC RESEARCH (C-CER)

C–CER continued to focus on research on macro economics in India and the Asia Pacific, consistently
building CRISIL’s franchise in the Indian media and positioning the Company as the foremost analytics-
based voice on the economy in the region.

C-CER published two special reports during the year–‘Skilling India: The Billion People Challenge’, and
‘India: Raising the Growth Bar’. It also introduced two new products—CRISIL EcoMonitor and South
Asia Economic Outlook. C-CER continues to work with the Egyptian Institute of Directors (EIoD), and
Hawakmah, the Institute for Corporate Governance (a subsidiary of the Dubai International Financial
Centre) for creation of an Environmental, Social & Governance (ESG) Index in their respective regions.

F. HUMAN RESOURCES
CRISIL’s Human Resources team continued to focus on attracting, retaining, and growing talent. In
2010, 1083 employees were hired, up from 579 hired in 2009. The total headcount in CRISIL increased
to 2805 as on December 31, 2010 from 2164 a year previously.

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), which
entered its fourth year, with 47 interns from the programme joining during the year.

Inducted all 17 interns from the first batch of the Irevna Certified Analyst Programme (ICAP)

26
 Ready for the next level.

Retaining Talent

CRISIL followed a structured approach towards people development, by understanding the functional
and behavioural competencies required for each role, and then devising a comprehensive training plan
to address gaps in skill sets.

More than 1100 training sessions were conducted organisation-wide, during the year, aggregating
77,752 man-hours of training. These trainings ranged from technical subjects to functional and
behavioural skill-building programmes.

To increase employee engagement, the Rewards and Recognition programme, ‘CRISIL AWARDS -
Celebrating Winning Performances’ was revamped, expanding the scope of the awards, increasing the
transparency of the process, and providing greater visibility to award winners.

CRISIL’s brand-building and thought leadership initiative, the CRISIL Young Thought Leader (CYTL)
competition, received 153 responses from students of 62 business colleges and graduate schools.

During the year, 93 employees received remuneration of Rs. 2.4 million or more per annum. In
accordance with the provisions of Section 217(2A) of the Companies Act, 1956 and the rules framed
thereunder, the names and other particulars of employees are set out in the annexure to the Director’s
Report. In terms of the provisions of Section 219(1) (b) (iv) of the Companies Act, 1956, the Directors’
Report is being sent to the shareholders without this annexure. Shareholders interested in obtaining a
copy of the annexure may write to the Company Secretary at CRISIL’s registered office.

G. 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. A statement containing brief financial
details of these companies is included in the annual report. The annual accounts of the subsidiary
companies and the related information will be made available to shareholders who seek such information.

H. ACQUISITION OF PIPAL RESEARCH

CRISIL signed agreements on September 22, 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. After completion of all conditions precedent, the transaction was
completed with effect from December 3, 2010.

I. JOINT VENTURE - INDIA INDEX SERVICES AND PRODUCTS LIMITED

India Index Services and Products Limited (IISL), CRISIL’s 49:51 joint venture with National Stock
Exchange of India Limited (NSE), provides a variety of indices and index-related services and products
to the capital markets. IISL has a licensing and marketing agreement with S&P, the world’s leading
provider of investible equity indices.

IISL issued licenses to various clients such as Insurance Companies, Asset Management Companies,
etc. within India for facilitating the launch of Index Funds, Exchange Traded Funds and issuance
of debentures that carry returns linked to the S&P CNX Nifty Index. IISL also concluded licensing
agreements for issuance of structured products linked to the S&P CNX Nifty Index outside India.

27
 statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

J. DIRECTORS
In accordance with the articles of association of the Company and the provisions of the Companies Act,
1957, Mr. BV Bhargava and Dr. Nachiket Mor retire by rotation and being eligible, offer themselves for
reappointment.

K. AUDITORS
The Statutory Auditors, M/s. SR Batliboi & Co, Chartered Accountants, hold office up to the ensuing
Annual General Meeting and the Board recommends their reappointment.

L. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review, as stipulated under Clause 49
of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming
part of the Annual Report.

M. 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.

The report on corporate governance as stipulated under Clause 49 of the Listing Agreement forms part
of the Annual Report.

The certificate from the auditors of the Company confirming compliance with the conditions of corporate
governance as stipulated under Clause 49, is attached to this report.

N. OTHERS
N.1 PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
The particulars regarding foreign exchange earnings and expenditure appear at Item No. 8 and 9
in the notes to the Accounts. Since the Company does not own any manufacturing facility, 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, 1988 are not applicable.

N.2. DIRECTORS’ RESPONSIBILITY STATEMENT AS REQUIRED UNDER THE PROVISIONS

CONTAINED IN SECTION 217(2AA) OF THE COMPANIES ACT, 1956
Your Directors hereby confirm that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed.

(ii) The Directors have selected such accounting policies and applied them consistently and made
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.

(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.

(iv) The Directors have prepared the annual accounts on a going concern basis.

28
 Ready for the next level.

Employees Stock Option Scheme

The shareholders of the Company by postal ballot on February 4, 2011 approved the Employees Stock
Option Scheme for employees and Whole-time Directors of CRISIL and its subsidiaries.

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. 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. The Board acknowledges the splendid
support provided by market intermediaries. The affiliation with Standard and Poor’s has been a source
of great strength. 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, the Reserve Bank of India, the Government
of India, and the state governments. The role played by the media in highlighting the good work done
by CRISIL is deeply appreciated.

On behalf of the Board of Directors,

Deven Sharma
Mumbai, February 14, 2011 Chairman

29
 statutory reports
Board of Directors Directors’ Report Management Discussion and Analysis

Annexure to the Directors’ Report

Management Discussion and Analysis Report

Business and Industry Overview

CRISIL is a globally diversified 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. CRISIL’s majority shareholder, Standard and Poor’s, is
the world’s foremost provider of independent credit ratings. Standard & Poor’s is a part of The Mc Graw-Hill
Companies.

The business environment remained steady for Ratings during 2010. Growth for CRISIL’s Ratings business
was driven by overall improvement in investor sentiment, leading to improvement in the bond and commercial
paper market. The Bank Loan Ratings (BLR) and Small and Medium Enterprise Ratings (SME) segments
maintained consistent growth. Increasing interest rates towards the end of the year could impact fresh bond
and commercial paper issuance in the near term, while momentum in BLR and SME ratings is expected to
continue. The Global Analytical Centre (GAC) operations are expected to maintain growth momentum, in
line with recovery in the global credit markets.

CRISIL’s Global Research and Analytics business performed well in 2010, with business volumes growing
considerably. Irevna continued to maintain leadership in equity, fixed income, derivative, quantitative and
actuarial services. During 2010 Irevna’s research centers based in Poland and Argentina saw good growth,
with several new roles being added. 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 India research business benefited
from an improvement in the domestic business environment.

CRISIL’s Infrastructure Advisory business has two main segments—energy and urban development. While
the energy segment benefited from investments and policy initiatives, the urban development segment
witnessed a slowdown in the second half of 2010. The outlook for 2011 continues to be positive for the
energy sector; improvement is also expected in the urban development segment as the government initiates
steps to arrest the slowdown in this segment.

The outlook for CRISIL Risk Solutions (CRS) is positive as banks and financial institutions continue to invest
in Risk Management Systems. CRS is also looking at expanding its business, particularly in the ASEAN
market.

Analysis of Financial Condition and Results of Operations

The accompanying financial statements have been prepared in accordance with the requirements of the
Companies Act, 1956, and Generally Accepted Accounting Principles and accounting standards prevailing
in India. CRISIL’s management accepts responsibility for the integrity and objectivity of these financial
statements, and for the estimates and judgments used therein.

30
 Ready for the next level.

A. Financial Condition
1) Fixed Assets
At the end of the year, the company’s investments in fixed assets were as follows:

Details Dec. 31, 2010 Dec. 31, 2009 Growth ( %)

(Rupees Lakh) (Rupees Lakh)
Gross Block 17738.69 10,990.08 61%
Less : Accumulated Depreciation 7753.99 6,045.55 28%
Net Block 9,984.70 4,944.53 102%
Add : Capital Work in Progress 8.3 6,366.83 -100%
Net Fixed Assets 9,993.00 11,311.36 -12%
Depreciation as a % of Total Income 3% 3%
Accumulated Depreciation as % of 44% 55%
Gross Block

During the year, the company’s investment in fixed assets and capital work in progress was Rs.
930.92 lakh, whereas sale of assets realised Rs.3,189.67 lakh. The assets acquired included
equipment, computers, and leasehold improvements to support expansion of business and
to provide for replacement of existing assets. The assets sold were mainly office properties,
computers and furniture. 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. The company expects to fund its investments in fixed assets and infrastructure
from its internal accruals and liquid assets. It may, however, borrow to fund capital expenditure, if
considered necessary.

2) Investments and Treasury

The company’s treasury as on December 31, 2010, was Rs.13,119.02 lakh, as against
Rs. 23, 415.88 lakh in the previous year. The details of the investments are as under:

Category 2010 % 2009 %

(Rupees Lakh) (Rupees Lakh)
Cash and Bank Balance 3,359.75 26% 7,235.83 31%
Fixed Deposit 8,759.27 67% 6,180.44 26%
Money Market Mutual funds - 0% 9999.61 43%
Fixed Maturity Plans 1,000.00 7% - 0%
Total 13,119.02 100% 23,415.88 100%

The Company’s treasury position as of December 31, 2010, is lower than that of the previous year,
mainly on account of payouts for a one-time special dividend, the buyback programme and the
Pipal acquisition. Cash and cash equivalents constituted 34% of total assets as on December 31,
2010, as against 57% in the previous year.

3) Current Assets, Loans and Advances

Sundry debtors were Rs. 10,024.50 lakh as on December 31, 2010, as against Rs. 7,328.64 lakh as
on December 31, 2009. The debtors constituted 19% of the total operating revenue, (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. The increase in debtors outstanding has
been mainly on account of an increase in receivables in the research business.

31
 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 As on Dec 31,2009

Segment (Rupees Lakh) % (Rupees Lakh) % %Change
Rating Services 3,601.10 36% 3,491.70 48% 3%
Research Services 6,423.41 64% 3,836.94 52% 67%
Total 10,024.50 100% 7,328.64 100% 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, [Link] 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 12 Months Ended 12 Months Ended Growth
Particulars Dec-10 % Dec-09 % %
Income from Operations 52,871.21 88% 44,162.34 95% 20%
Other Income 7,362.23 12% 2,283.02 5% 222%
Total Income 60,233.44 100% 46,445.36 100% 30%
Expenses
Personnel Expenses 19,890.45 33% 15,953.90 34% 25%
Establishment Expenses 6,123.91 10% 4,741.51 10% 29%
Other Expenses 7,026.42 12% 5,327.86 11% 32%
Depreciation 2,020.85 3% 1,387.93 3% 46%
Operating Expenses 35,061.63 58% 27,411.20 59% 28%
Profit before Tax 25,171.81 42% 19,034.16 41% 32%
Provision for Taxation 5,321.90 9% 4,000.44 9% 33%
Profit after Tax & before prior 19,849.91 33% 15,033.72 32% 32%
period items
Prior period expense, net of tax 274.45 0% - 0% 0%
Profit after Tax 19,575.46 32% 15,033.72 32% 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 12 Months Ended Growth
Segment Dec-10 % Dec-09 % %
Rating Services 28,408.77 54% 23,890.16 54% 19%
Research Services 24,462.44 46% 20,272.18 46% 21%
Income from Operations 52,871.21 100% 44,162.34 100% 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 12 Months Ended Growth
Particulars Dec- 10 % Dec-09 % %
Personnel Expenses 19,890.45 38% 15,953.90 36% 25%
Establishment Expenses 6,123.91 12% 4,741.51 11% 29%
Other Expenses 7,026.42 13% 5,327.86 12% 32%
Depreciation 2,020.85 4% 1,387.93 3% 46%
Total Expenses 35,061.63 66% 27,411.20 62% 28%
Income from Operations 52,871.21 100% 44,162.34 100% 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 Dec-10 Dec-09 Dec-08 Dec-07 Dec-06

Average number of Employees
2,121 1,817 1,627 1,168 680
Operating Revenue per employee
(Rupees Lakh) 24.93 24.31 23.25 21.87 21.73
Net Profit per Employee (Rupees Lakh) 9.25 8.28 8.44 6.05 5.50

Interest
The Company continued to be debt-free during the year and therefore, did not incur any interest
expense.

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 plain-
vanilla 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
 Ready for the next level.

applications that capture and maintain information regarding business processes, thus protecting its
knowledge base. The company also possesses intellectual property rights for customised business
applications. The technology used by the company at all locations provides for redundancy, and
for disaster recovery. For critical business processes, the business teams have defined a business
continuity plan and have tested it with the help of the IT team. The technology department keeps
continuously abreast of technology changes, and suitably undertakes projects for technology
upgradation to keep the technology infrastructure current, 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. This, coupled with adequate internal information systems embedded in business
automation software, ensures proper information flow for the decision-making process. Adherence
to these processes is ensured through frequent internal audits. The Executive Committee monitors
business operations through regular reviews of performance vis-à-vis budgets. An extensive
programme of internal audit conducted by an independent firm, reviews by the Audit Committee,
and requisite guidelines and procedures augment the internal controls. The internal control system
is designed to ensure that financial and other records are reliable for preparing financial statements
and other information. These procedures ensure that all transactions are properly reported and
classified in the financial records.

6) Policy Risks
The company derives a significant portion of its revenues from Rating services, which depend on
several factors, including regulatory policy. 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. At present, ratings are mandatory for all public
offerings of debentures, except where the conversion or redemption is within 18 months. Ratings
are also mandatory for all commercial paper issuances. The present Government policy is directed
towards meeting investment requirements through resource mobilisation from the capital markets.
However, to mitigate the risk of dependence on mandated businesses, the company continues
to pursue its strategy of diversification, and globalising its operations. It also seeks to build a
strong franchise with investors by holding investor meets and seminars for improving transparency
around ratings and rating methodologies, and showcasing the utility and benefits of ratings.

The above discussion contains forward-looking statements, which may be identified by their use of
words such as plans, expects, will, anticipates, intends. All such statements address the expectations
from, and projections for, the future, including but not limited to statements about the company’s
strategy for growth, product development, market development, market position, expenditure and
financial results. These forward-looking statements are based on assumptions and expectation
of future events. The company cannot guarantee that these assumptions and expectations are
accurate or will be realized. The company’s actual results, performance, or achievements may,
therefore, differ materially from those projected in these forward-looking statements. The company
assumes no responsibility to publicly amend any forward-looking statements, on the basis of any
subsequent developments, information or events.

35
 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, 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with
the Stock Exchanges.

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our
examination was limited to procedures and implementation thereof, adopted by the Company for ensuring
the compliance with the conditions of Corporate Governance as stipulated in the said Clause. It is neither
an audit nor an expression of opinion on the financial statements of the Company.

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, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing
Agreement.

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.

For S.R. Batliboi & Co.,

Firm Registration No.: 301003E
Chartered Accountants

per Shrawan Jalan

Partner
Mumbai, February 14, 2011 Membership No: 102102

36
 Ready for the next level.

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.

For CRISIL Limited

Roopa Kudva

Date: February 14, 2011 Managing Director & Chief Executive Officer

37
 statutory reports
Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance

Report of the Directors on

Corporate Governance

CRISIL has been practicing the principles of good corporate governance over the years. The Company has
adopted best practices for corporate governance, and disclosure standards, and enhanced shareholder
value while protecting the interests of other stakeholders, clients, suppliers and its employees.

The Directors present below the Company’s policies and practices on corporate governance.

Board of Directors:
Size and Composition of the Board:

The Board of Directors has eight members. The Board comprises of four independent Directors. As per
the Articles of Association of the Company, the Board can have up to 15 members. The Company has one
alternate Director. The Chairman is a non-executive Director. Mr. B. V. Bhargava, Mr. H.N. Sinor, Ms. Rama
Bijapurkar and Dr. Nachiket Mor are the Independent Directors on the Board of the Company.

Membership Term:

As per the Articles of Association of the Company, at least two-thirds of the Board of Directors should
be retiring Directors. One-third of these Directors are required to retire every year and if eligible, the
retiring Directors qualify for re-appointment. The Board has adopted the following guidelines regarding the
appointment and tenure of a non-whole time Director on the Board :-

1. No Director should hold directorships in more than ten Indian public limited companies.

2. Every Director is expected to attend at least 60% of the Board meetings held in a year. While re-
appointing Directors on the Board and Committees of the Board, the contribution and attendance
record of the concerned Director should be considered.

3. The change of Directors on the Board of CRISIL, if carried, would be so accomplished that at no point
of time, the average term of the members on the Board is reduced unreasonably.

4. 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, if eligible.

Criteria for Board Membership:

The members of the Board of Directors of the Company are eminent persons of proven competence and
integrity. The Board comprises individuals with personal characteristics and core competencies such as
the recognition of the importance of the Board’s tasks, integrity, sense of accountability and track record
of achievements. Besides having financial literacy, experience, leadership qualities and the ability to think
strategically, the Directors have a significant degree of commitment to the Company and devote adequate
time for the meetings, preparation and attendance. Board members possess the education, expertise, skills
and experience in various sectors and industries required to manage and guide the Company.

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. None of the non-
whole-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. Ravinder Singhania
is a partner. 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.

38
 Ready for the next level.

Succession Policy:

The Board constantly evaluates the contribution of its members and recommends to shareholders their re-
appointment periodically as per the statute. Whole-time Directors are appointed by the shareholders for a
maximum period of five years at one time, but are eligible for re-appointment upon completion of their term.
Non-whole-time Directors do not have any term but retire by rotation as per the law.

The Board has adopted a retirement policy for its members. The maximum age of retirement of Whole-time
Directors is 58 years, which is the age of superannuation for the employees of the Company.

Memberships of other boards:

Independent Directors are not expected to serve on the boards of competing companies. 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. Furthermore, 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. 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 Committee Memberships*

BV Bhargava Excel Crop Care Limited Chairman, Audit Committee
Grasim Industries Limited Chairman, Audit Committee
ICICI Lombard General Insurance -
Company Limited
J.K. Lakshmi Cement Limited Chairman, Audit Committee
Supreme Industries Limited -
L&T Infrastructure Finance -
Company Limited
Grasim Bhiwani Textiles Limited Chairman, Audit Committee
Lakshmi Precision Screws Limited -
L&T Finance Holdings Limited Member, Audit Committee
Maxx Mobile Communications Member, Investor Grievance Committee
Limited
HN Sinor 3i Infotech Limited -
ICICI Venture Funds Management Member, Audit Committee
Company Limited
ICICI Lombard General Insurance Member, Audit Committee
Company Limited
Tata Investment Corporation Chairman, Audit Committee
Limited
Tata Capital Limited Member, Audit Committee
Tata Motors Finance Limited -
Themis Medicare Limited Member, Audit Committee
Sahara India Financial Corporation Member, Audit Committee
Limited
Zoroastrian Co-operative Bank -
Limited

39
 statutory reports
Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance

Name of the Director Memberships on other Boards Committee Memberships*

Rama Bijapurkar CRISIL Risk and Infrastructure -
Solutions Limited
Axis Bank Limited -
Mahindra Holidays & Resorts India Member, Audit Committee
Limited
Mahindra and Mahindra Financial Member, Audit Committee
Services Limited
ICICI Prudential Life Insurance -
Company Limited
Nachiket Mor - -
Deven Sharma - -
Thomas Schiller CRISIL Risk and Infrastructure -
Solutions Limited
David Pearce 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, US -
Irevna Limited, UK -
CRISIL Irevna Poland Sp. Z.o.o -
CRISIL Irevna Information -
Technology (Hangzhou) Co. Ltd

* Memberships/Chairmanships in Audit Committee and Shareholders’/Investors’ Grievance Committee is

considered.

Details of Shareholdings of Directors as on December 31, 2010

Name of the Director No. of shares held

BV Bhargava -
HN Sinor -
Rama Bijapurkar -
Nachiket Mor -
Deven Sharma -
Thomas Schiller -
David Pearce -
Ravinder Singhania, Alternate Director -
Roopa Kudva, MD & CEO 16,000

40
 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 operations-
related 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 No. of Board Last Annual

meetings held meetings attended General Meeting
attendance
BV Bhargava 6 6 Yes
HN Sinor 6 5 Yes
Rama Bijapurkar 6 5 Yes
Nachiket Mor 6 4 Yes
Deven Sharma 6 3# Yes
Thomas Schiller 6 5 Yes
David Pearce 6 4 Yes
Roopa Kudva 6 6 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 performance-
linked 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 Sitting Fees Commission Total
BV Bhargava 320,000 2,285,280 2,605,280
HN Sinor 160,000 2,094,840 2,254,840
Rama Bijapurkar 120,000 2,094,840 2,214,840
Nachiket Mor - 2,094,840 2,094,840
Deven Sharma 60,000 1,142,640 1,202,640
Thomas Schiller 180,000 1,428,300 1,608,300
David Pearce 180,000 1,142,640 1,322,640
Ravinder Singhania
(Alternate Director) - - -
Total 10,20,000 12,283,380 13,303,380

42
 Ready for the next level.

Remuneration Paid to Whole-time Director for the year ended December 31, 2010

(Rupees Lakh)
Name Roopa Kudva
Salary 130.02
Perquisites 4.90
Variable Pay/Commission 106.70
Provident Fund & Gratuity 4.68
Appointment valid till July 27, 2012
Notice period 3 months

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.

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 No. of committee meetings No. of committee meetings

held attended
HN Sinor 4 3
BV Bhargava 4 4
Dr. Nachiket Mor 4 4
David Pearce 4 4
The terms of reference for the Audit Committee are as follows-
1. Overseeing the financial reporting process to ensure fairness, sufficiency and credibility of financial
statements
2. 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
 statutory reports
Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance

3. Reviewing of the quarterly and annual financial statements before submission to the Board
4. Reviewing the adequacy of the internal control systems
5. Reviewing the adequacy of the internal audit functions, discussing any significant findings and follow
thereon
6. Discussing on the nature and scope of audit with the statutory auditors
7. Reviewing the financial and risk management policies
8. Examination of reasons for substantial defaults, if any, in payment to stakeholders
9. Providing direction to the internal audit functions and monitors the quality of internal and statutory audit
10. Review the functioning of the Whistle Blower mechanism
The composition, procedures, role, powers and the terms of reference of the Audit Committee are as
stipulated in Section 292A of the Companies Act, 1956 and clause 49 of the listing agreement.

Investment Committee:
The Investment Committee comprises of three non-executive Directors - Mr. BV Bhargava (Chairman),
Mr. Thomas Schiller, Mr. David Pearce, and one executive director, Ms. Roopa Kudva. The Investment
Committee lays down policy guidelines and procedures for investing the Company’s funds, and reviews this
activity at regular intervals. The Investment Committee met once during the year—on October 18, 2010.

Director No. of committee meetings No. of committee meetings

held attended
BV Bhargava 1 1
Thomas Schiller 1 -
David Pearce 1 1
Roopa Kudva 1 1

Investors Grievance Committee:

The Investors Grievance Committee comprises of two non-executive directors, Mr. BV Bhargava (Chairman),
Mr. Thomas Schiller, and one executive director, Ms. Roopa Kudva. The Committee periodically reviews
the status of investor grievances and redressal of the same. The Committee met four times in 2010—on
February 18, April 16, July 22, and October 18.

Director No. of committee No. of committee

meetings held meetings attended
BV Bhargava 4 4
Thomas Schiller 4 3
Roopa Kudva 4 4

Compensation Committee:
The Compensation Committee comprises of five non-executive directors—Mr. BV Bhargava (Chairman),
Mr. Deven Sharma, Ms. Rama Bijapurkar, Mr. Thomas Schiller, and Mr. HN Sinor. The chairman of the
Compensation Committee was present at the Annual General Meeting held on April 16, 2010. The Committee
ensures that a proper system of compensation exists to provide performance-based compensation to
all employees of the Company. The Committee considers and approves salary, commission and other
emoluments payable to Whole-time directors and employees of the Company. The annual compensation of
Whole-time Directors is determined by the Compensation Committee within the limits set by the shareholders
at the general meeting. It also recommends to the Board, the remuneration payable to non-whole-time
directors, within the limits laid down by the shareholders at the general meeting and in accordance with
other applicable laws. The Committee met once during the year—on February 18, 2010.

44
 Ready for the next level.

Director No. of committee No. of committee meetings

meetings held attended
BV Bhargava 1 1
Rama Bijapurkar 1 1
Thomas Schiller 1 1
Deven Sharma 1# -
HN Sinor* - -

* Mr HN Sinor has been appointed member of the Compensation Committee with effect from December
20, 2010.
# Mr. Deven Sharma attended the committee meeting by tele-conference.

Allotment Committee:
The Allotment Committee has been formed to complete the formalities prescribed under the Companies Act,
1956, relating to allotment of shares and to authorise officials of the Company to file forms and returns with
regulatory authorities. The Allotment Committee comprises of two non-executive directors— Dr. Nachiket
Mor (Chairman), and Ms. Rama Bijapurkar—and one executive Director, Ms. Roopa Kudva. No Allotment
Committee meeting was held during the year as no shares were allotted during the year.

SHARE HOLDERS
Means of Communication:
1. Half-Yearly Newsletter: The Company sends a half-yearly newsletter giving details of the Company’s
financial performance, including a summary of significant events in the last six months to shareholders.

2. Quarter and annual financial results are published in the leading national and regional newspapers, and
displayed on the Company’s website.

3. News releases, press releases and presentations made to investors and analysts are displayed on the
Company’s website.

4. The annual report is circulated to all members, and is also available on the Company’s website.

The Management Discussion and Analysis Report form a part of the annual report.

In case of appointment or re-appointment of a Director, members are provided a brief resume of the Director,
the nature of his/her expertise in specific functional areas, the names of companies in which he/she holds
directorship, and membership of Committees of the Board.

Grievance Redressal:
The Board has appointed an Investor Grievance Committee to review and redress complaints received from
shareholders. The Committee meets periodically to consider the status of the investor grievances received
and redressed along with the ageing schedules of pending complaints. The Board has authorised Mr.
Shrikant Dev, Company Secretary, to approve the transfer and transmission of shares.

A secretarial audit is conducted by an independent practising company secretary on quarterly basis, to

confirm reconciliation of the issued and listed capital, dematerialised capital, and status of the register of
members.

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.

45
 statutory reports
Auditors’ Certificate for Corporate Governance Report of the Directors on Corporate Governance

General Body Meetings:

The location, time and venue of the last three Annual General Meetings were as under:

Nature of Meeting Date and Time Venue

Twenty First Annual General Meeting April 23, 2008 at 3.30 pm Babasaheb Dahanukar
Hall, Maharashtra Chamber
of Commerce, Industry &
Agriculture, Oricon House, Fort.
Mumbai – 400001.
Twenty Second Annual General Meeting April 28, 2009 at 3.30 pm Rangaswar Hall, 4th floor,
Yashwantrao Chavan
Pratishthan, Gen. Jagannath
Bhosale Marg, Next to
Sachivalaya Gymkhana,
Mumbai 400 021.
Twenty Third Annual General Meeting April 16, 2010 at 3.30 pm Rangaswar Hall, 4th floor,
Yashwantrao Chavan
Pratishthan, Gen. Jagannath
Bhosale Marg, Next to
Sachivalaya Gymkhana,
Mumbai 400 021.
No Special Resolutions were passed at the last three general body meetings.

Postal Ballot System:

The Central Government has notified the Companies (Passing of Resolution by Postal Ballot) Rules 2001,
which lays down the businesses required to be passed by postal ballot.
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 Date of Declaration of Postal Description

Ballot Result
1. October 18, 2010 Special Resolution under Section 31 of the Companies Act,
1956 for alteration of Articles of Association
2. October 18, 2010 Special Resolution under Section 77A of the Companies Act,
1956 for the purchase of its own shares
3. February 4, 2011 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, 1956 and SEBI (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines
1999
4. February 4, 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, 1956
and SEBI (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines 1999

46
 Ready for the next level.

Disclosures:
During the year, there were no material related-party transactions i.e. transactions of the Company of a
material nature with its promoters, the Directors or the management, their subsidiaries or relatives etc. that
may have a potential conflict with the interests of the company at large. Other related-party transactions are
mentioned in the notes to the accounts.

There was no non-compliance by the company and no penalties or strictures were imposed on the Company
by the Stock Exchange or SEBI, or any statutory authority on any matter related to the capital markets
during the last three years.

The Company has complied with all the mandatory requirements of clause 49 of the Listing Agreement.
The Company has also complied with the non-mandatory requirements relating to publication of half-yearly
results, having unqualified financial statements, having a whistle-blower policy and also has a mechanism
for evaluating non-executive board members.

CRISIL Code of Conduct for Directors and Senior Management:

The Board of Directors of CRISIL has adopted the Code of Conduct for Senior Management; the same is
available on the website of the Company.

Whistle-Blower Policy:
The Company has a Whistle-Blower Policy, whereby employees are free to report violations of laws, rules,
and regulations, or unethical conduct to the Audit Committee. There has been no instance of employees
acting under this policy.

47
 statutory reports
General Information for Members

GENERAL INFORMATION FOR MEMBERS

1. Annual General Meeting :

Date and Time April 15, 2011 at 3.30 p.m.
Venue Rangaswar Hall, 4th floor,
Yashwantrao Chavan Pratishthan,
Gen. Jagannath Bhosale Marg
Next to Sachivalaya Gymkhana
Mumbai – 400021
2. Calendar for Financial Reporting :
for the
First Quarter ending March 31, 2011 Friday, April 15, 2011
Second Quarter ending June 30, Wednesday, July 20, 2011
2011
Third Quarter ending September 30, Tuesday, October 18, 2011
2011
Year Ending December 31, 2011 End of February, 2012
Newspaper where the results are Business Standard and Sakal
published
Site where the financial results, [Link]
shareholding pattern, annual report
etc. are uploaded
3. Proposed Final Dividend : Rs. 25 per share having nominal value of Rs. 10 each.
4. Dates of Book Closure : Wednesday, March 16, 2011 to Thursday, March 17,
2011 (both days inclusive)
5. Dividend Payment Date : May 03, 2011 (if dividend payment is approved at the
Annual General Meeting).
6. Listing Details : The shares of the Company are listed on:

National Stock Exchange of India Limited (NSE)

Exchange Plaza, 5th Floor,
Plot No. C/1, G Block,
Bandra-Kurla Complex,
Bandra (E), Mumbai – 400 051.
Bombay Stock Exchange Limited (BSE)
Jeejeebhoy Towers, Dalal Street,
Fort, Mumbai - 400 001.
The Company has paid listing fees at both the exchanges
and has complied with the listing requirements.
7. Stock Code National Stock Exchange of India Limited (NSE) CRISIL
Bombay Stock Exchange Limited (BSE) - 500092.
ISIN Number: INE007A01017
8. Registrars and Share Transfer : Karvy Computershare Private Limited
Agents Karvy House, 21, Avenue – 4,
Plot No.17 to 24, Near Image Hospital
Vittalrao Nagar, Madhapur.
Hyderabad –500 081
Phone No. 040-23420818-828
Fax. No. 040-23420814

48
 Ready for the next level.

9. Compliance Officer : Mr. Shrikant Dev,

Company Secretary
CRISIL House,
Central Avenue, Hiranandani Business Park,
Powai, Mumbai – 400076.
Phone: 022-33423000
Fax: 022-33423810
10. Depository System : Currently, 99.58% of the Company’s Share Capital
is held in dematerialised form. For any assistance in
converting physical shares in electronic form, investors
may approach Karvy Computershare Private Limited or
Mr. Shrikant Dev, Compliance Officer, at the addresses
given above.
11. Electronic Clearing Service (ECS) The Company has extended the ECS facility to
shareholders to enable them to receive dividend
through electronic mode in their bank account. The
Company encourages members to avail of this facility
as ECS provides adequate protection against fraudulent
interception and encashment of dividend warrants,
apart from eliminating loss/damage of dividend warrants
in transit and correspondence with the Company on
revalidation/issuance of duplicate dividend warrants.
12. Bank Details for Electronic : Members are requested to notify their Depository
Shareholding Participant (DP) about the changes in the bank details.
Members are requested to furnish complete details of
their bank accounts including the MICR codes of their
banks to their DPs.
13. Furnish Copies of Permanent : The members are requested to furnish their PAN which
Account Number (PAN) will help us to strengthen compliance with KYC norms
and provisions of Prevention of Money Laundering Act,
2002.
For transfer of shares in physical form, SEBI has made it
mandatory to the transferee to submit a copy of PAN card
to the Company .
14. Investor Complaints to be : Registrars and Share Transfer Agents or to Mr. Shrikant
addressed to Dev, Compliance Officer, at the above mentioned
address.
15. Email ID of Grievance Redressal : investors@[Link]
Division

Shareholding Pattern as on December 31, 2010

Sr. Category No. of shares held % Holding

No.
1. Group Holding of the The McGraw-Hill Companies
a) Standard & Poor’s International LLC 600,000 8.45
b) S&P India LLC 3,120,948 43.98
2. Individuals 1,248,090 17.59
3. FIIs 715,265 10.08
4. Mutual Funds/UTI 566,136 7.97
5. Insurance Companies 474,452 6.69
6. Financial Institutions/Banks 215,011 3.03
7. Bodies Corporate 124,576 1.75
8. Directors 16,000 0.23
9. NRIs 16,366 0.23
Total 7,096,844 100.00

49
 statutory reports
General Information for Members

Members holding more than 1% of the paid-up share capital as on December 31, 2010.

Sr. Name of the Shareholder No. of shares held % Holding

No
1. Group Holding of the The McGraw-Hill Companies
a) Standard & Poor’s International LLC 600,000 8.45
b) S&P India LLC 3,120,948 43.98
2. Jhunjhunwala Rakesh & Rekha 550,000 7.75
3. General Insurance Corporation of India 303,039 4.27
4. Unit Trust of India 245,820 3.46
5. State Bank of India 200,390 2.82
6. Acacia Partners, LP/Acacia Institutional Partners, LP 171,688 2.42
7. Life Insurance Corporation of India 171,413 2.42
8. Franklin Templeton Investment Funds 154,232 2.17
9. Bright Star Investments Pvt Ltd 94,238 1.33
10. Variable Insurance Products Fund III – Mid Cap 88,255 1.24
11. Wasatch Fund 77,280 1.09
12. Tata Trustee Co. Pvt. Ltd- A/c Tata Mutual Fund 74,110 1.04
13. Templeton Mutual Fund A/c-Franklin India 72,122 1.02
Total 5,923,535 83.47

Status report on number of shareholder requests/complaints received and resolved by the Company
during the year ended December 31, 2010

Nature of Correspondence Received Resolved Pending

Transfer/Transposition/Transmission 13 13 -
Dematerialisation/Remat/ECS/other Request 49 49 -
Registration of Power of Attorney - - -
Issue of duplicate share certificate/correction/process 5 5 -
queries
Non-receipt of dividend warrant 50 50 -
Issue of duplicate drafts in lieu of warrants/revalidation of 46 46 -
warrants
Incorporation of change of address 10 10 -
Incorporation of bank mandate 3 3 -
TOTAL 176 176 -

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.

NSE BSE
Month High (Rupees) Low (Rupees) Month High (Rupees) Low (Rupees)
January 5700.00 4450.10 January 5300.00 4290.30
February 5300.00 4601.00 February 5271.00 4700.00
March 5784.45 4821.10 March 5555.50 4873.30
April 6050.00 5228.00 April 6066.00 5249.70
May 5649.00 5252.00 May 5600.00 5255.05
June 5880.00 5275.00 June 5900.00 5300.00
July 6000.00 5610.00 July 6090.90 5640.00
August 6048.00 5376.00 August 6100.00 5391.10
September 6265.00 5565.00 September 6300.00 5571.00
October 6999.00 5931.00 October 6350.00 5910.00
November 6300.00 5700.00 November 6343.00 5655.55
December 6880.00 5721.60 December 6150.00 5704.05

50
 Ready for the next level.

CRISIL Ltd. v/s S&P CNX 500, S&P CNX Nifty

6500

6000

5500
Index Value

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. S&P CNX 500 S&P CNX Nifty

Shareholders Rights:
A shareholder in a Company enjoys certain rights, which are as follows:

To receive share certificates, on allotment or transfer as the case may be, in due time.
To receive copies of the Annual Report, Balance Sheet and Profit and Loss Account and the Auditor’s
Report.
To participate and vote in General Meetings either personally or through proxies.
To receive dividends in due time once approved in General Meetings.
To receive corporate benefits like rights, bonus etc. once approved.
To apply to the Company Law Board to call or direct the Annual General Meeting.
To inspect the minute books of the General Meetings and to receive copies thereof.
To proceed against the Company by way of civil or criminal proceedings.
To apply for the winding-up of the Company.
To receive the residual proceeds.
Other rights are as specified in the Memorandum and Articles of Association available on the website,
[Link].

Apart from the above rights, an individual shareholder also enjoys the following rights as a group:

To appoint the Directors and Auditors of the Company.

To requisition an Extraordinary General Meeting.

To demand a poll on any resolution.

To apply to the Company Law Board to investigate the affairs of the Company.

To apply to the Company Law Board for relief in cases of oppression and/or mismanagement.

The above-mentioned rights may not necessarily be absolute.

51
 At CRISIL, the end of one journey marks the beginning

of another in a continuous pursuit of holistic excellence.

standalone financial statements

Auditors’ Report . .................................................................... 53

Balance Sheet ........................................................................ 56   Revenue

Profit and Loss Account ......................................................... 57 70,147.42
lakh. Dividend
Cash Flow Statement ............................................................. 58    2,000 %
Schedules forming part of Accounts........................................ 60   PAT
20,865.69 lakh.
Additional Information.............................................................. 84
Net worth 41,558.68 lakh.
PBT 26,733.23 lakh. PAT 20
70,147.42 Market Capitalisation 425,339 lakh. Revenue 70, 147
PAT 20,865.69 lakh.   EPS 285.71 Revenue 70,147.42 PBT 26,73
  Revenue 70,147.42 lakh.
Dividend 2,000 %
PAT 20,865.69 lakh.
Net worth 41,558.68 lakh.
EPS 285.71 Revenue 70,147.42 PBT 26,733

consolidated financial statements PAT 20,865.69 lakh. EPS 285.71 Revenue 70

70,147.42 PBT 26,733
Auditors’ Report on Consolidated Statements........................ 85 Net worth 41,558.68 lakh.

Consolidated Balance Sheet................................................... 86   Revenue 70,147.42 lakh.

Dividend 2,000 %
Consolidated Profit and Loss Account.................................... 87
PAT 20,865.69 lakh.
Consolidated Cash Flow Statement ........................................88

Schedules annexed to and forming part of the

PAT 20,865.69 lakh.
Consolidated Accounts............................................................ 90 70,147.42 PBT 26,733
EPS 285.71 Revenue
70,147.42 PBT
26,733
  Revenue 70,147.42 lakh.
Dividend 2,000 %

52
 Ready for the next level.

auditors’ report

To the Members of
CRISIL Limited

1. We have audited the attached Balance Sheet of CRISIL iii. The Balance Sheet, Profit and Loss Account and the
Limited (‘the Company’) as at December 31, 2010 and Cash Flow Statement dealt with by this report are in
also the Profit and Loss Account and the Cash Flow agreement with the books of account;
Statement for the year ended on that date annexed
iv. In our opinion, the Balance Sheet, Profit and Loss Account
thereto. These financial statements are the responsibility
and Cash Flow Statement dealt with by this report comply
of the Company’s management. Our responsibility is to
with the accounting standards referred to in sub-section
express an opinion on these financial statements based
(3C) of section 211 of the Companies Act, 1956;
on our audit.

v. On the basis of the written representations received from

2. We conducted our audit in accordance with auditing
the directors, as on December 31, 2010, and taken on
standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain record by the Board of Directors, we report that none of

reasonable assurance about whether the financial the directors is disqualified as on December 31, 2010 from

statements are free of material misstatement. An audit being appointed as a director in terms of clause (g) of sub-

includes examining, on a test basis, evidence supporting section (1) of section 274 of the Companies Act, 1956;

the amounts and disclosures in the financial statements.

vi. In our opinion and to the best of our information and
An audit also includes assessing the accounting
according to the explanations given to us, the said
principles used and significant estimates made by
accounts give the information required by the Companies
management, as well as evaluating the overall financial
Act, 1956, in the manner so required and give a true and
statement presentation. We believe that our audit
fair view in conformity with the accounting principles
provides a reasonable basis for our opinion.
generally accepted in India:
3. As required by the Companies (Auditor’s Report) Order,
a) in the case of the Balance Sheet, of the state of affairs of
2003 (as amended) [‘the Order’] issued by the Central
the Company as at December 31, 2010;
Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose, b) in the case of the Profit and Loss Account, of the profit
in the Annexure, a statement on the matters specified in for the year ended on that date; and
paragraphs 4 and 5 of the said Order.
c) in the case of Cash Flow Statement, of the cash flows for
4. Further to our comments in the Annexure referred to the year ended on that date.
above, we report that:
For S.R. BATLIBOI & Co.
i. We have obtained all the information and explanations,
Firm registration number: 301003E
which to the best of our knowledge and belief were
Chartered Accountants
necessary for the purposes of our audit;
per Shrawan Jalan
ii. In our opinion, proper books of account as required by
Place: Mumbai Partner
law have been kept by the Company so far as appears
Date: February 14, 2011 Membership No.: 102102
from our examination of those books;

53
 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) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.

(b) All fixed assets were physically verified by the management in accordance with a planned
programme of verifying them once in three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No material discrepancies were
noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

(ii) The Company is engaged in the business of providing rating and research services and therefore the
provisions of clause

(ii) of paragraph 4 of the said Order are not applicable to the Company and hence not commented upon.

(iii) The Company has not granted/taken any loan to/from parties covered under section 301 of the Companies
Act, 1956 and therefore the provisions of clause iii (c) to iii (g) are not applicable to the Company and hence
not commented upon.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate
internal control system commensurate with the size of the Company and the nature of its business,
for the purchase of fixed assets and for the sale of services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of these areas. During the course
of our audit, we have not observed any continuing failure to correct major weakness in internal control
system of the Company.

The Company is providing rating and research services and do not have inventory. Hence adequacy
of internal control pertaining to purchase and sale of inventory are not commented upon.

(v) According to the information and explanations provided by the management, 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. Accordingly, the provisions of clause (v)
(b) of paragraph 4 of the said Order are not applicable to the Company and hence not commented
upon.

(vi) The Company has not accepted any deposits from the public.

(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of
its business.

(viii) To the best of our knowledge and as explained, the Central Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act,
1956 for the products of the Company.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund,
or employees’ state insurance, income-tax, sales-tax, wealth-tax, service tax and cess and
other material statutory dues have been regularly deposited with the appropriate authorities.
Further, since the Central Government has till date not prescribed the amount of cess payable
under section 441 A of the Companies Act, 1956, we are not in a position to comment upon the
regularity or otherwise of the Company in depositing the same. The provisions relating to custom
duty and excise duty are not applicable to the Company.

(b) According to the information and explanations given to us, no undisputed amounts payable in
respect of provident fund, investor education and protection fund, employees’ state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other material
undisputed statutory dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.

54
 Ready for the next level.

(c) According to the records of the Company, the dues outstanding of income-tax as well as sales tax
on account of any dispute, are as follows:
Name of Nature of Amount (Rs) Period to which Forum where dispute is
the statute dues the amount relates pending
Income Tax Income Tax 6,968,429 A.Y. 2001 – 02 High Court
Act, 1961 demands 986,735 A.Y. 2002 – 03 High Court
raised against
2,743,256 A.Y. 2003 – 04 High Court
the Company
7,653,227 A.Y. 2004 – 05 High Court
276,914 A.Y. 2005 – 06 Deputy Comm. Of
Income Tax
1,619,600 A.Y. 2006 – 07 Deputy Comm. Of
Income Tax
5,053,440 A.Y. 2007 – 08 Comm. of Income Tax
(Appeals)
Sales Tax Sales Tax 4,534,537 A.Y. 2004 – 05 Asst. Comm. Of Sales Tax
Act, 1956 demands (Appeals)
raised on the 5,069,846 A.Y. 2005 – 06 Asst. Comm. Of Sales Tax
company (Appeals)

(x) 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.

(xi) The Company has not taken any loans from financial institution, bank and not issued any debentures.

(xii) According to the information and explanations given to us and based on the documents and records
produced to us, the Company has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the
provisions of clause 4(xiii) of the Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause 4(xiv) of the said Order are not applicable to the
Company.

(xv) According to the information and explanations given to us, the Company has not given any guarantee
for loans taken by others from bank or financial institutions.

(xvi) The Company has not taken any term loans during the year.

(xvii) According to the information and explanations given to us and on an overall examination of the
balance sheet of the Company, we report that no funds raised on short-term basis have been used for
long-term investment.

(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, 1956.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money by public issues during the year.

(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, we report
that no fraud on or by the Company has been noticed or reported during the course of our audit.

For S.R. BATLIBOI & Co.

Firm registration number: 301003E
Chartered Accountants

per Shrawan Jalan

Place: Mumbai Partner
Date: February 14, 2011 Membership No.: 102102
55
 standalone financial statements
Auditors’ Report Balance Sheet Profit and Loss Account

balance sheet
as at December 31, 2010

(Rupees)
Particulars Schedule December December
31, 2010 31, 2009
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital A 70,968,440 72,250,000
Reserves and Surplus B 3,554,086,835 4,050,013,397
TOTAL 3,625,055,275 4,122,263,397
APPLICATION OF FUNDS
Fixed Assets C
Gross Block 1,773,869,090 1,099,008,181
Less: Accumulated Depreciation/Amortization 775,399,236 604,554,675
Net Block 998,469,854 494,453,506
Capital Work-In-Progress (including Capital Advances) 829,817 636,682,868
999,299,671 1,131,136,374
Investments D 1,175,057,829 1,814,901,674
Deferred Tax Assets (Net) (Refer Note 6 - Schedule P) 121,763,199 87,908,504
Current Assets, Loans And Advances
Sundry Debtors E 964,189,743 694,978,977
Cash and Bank Balances F 1,219,895,840 1,345,360,048
Loans and Advances G 782,050,670 618,332,273
Other Current Assets H 74,950,779 109,724,102
3,041,087,032 2,768,395,400
Less: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities I 1,283,396,888 1,329,089,698
Provisions J 428,755,568 350,988,857
1,712,152,456 1,680,078,555
Net Current Assets 1,328,934,576 1,088,316,845
TOTAL 3,625,055,275 4,122,263,397
Significant Accounting Policies and Notes to the Accounts P

The schedules referred to above and notes to accounts form an integral part of the Balance Sheet

As per our report of even date.

For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants

per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava

Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011

56
 Ready for the next level.

profit and loss account

for the year ended December 31, 2010

(Rupees)
Particulars Schedule Year Ended Year Ended
December December
31, 2010 31, 2009
INCOME
Income from Operations K 5,287,120,859 4,416,234,450
Other Income L 736,222,592 228,301,849
TOTAL 6,023,343,451 4,644,536,299
EXPENDITURE
Personnel Expenses M 1,989,045,470 1,595,390,298
Establishment Expenses N 612,391,462 474,151,290
Other Expenses O 702,641,687 532,786,491
Depreciation 202,085,414 138,792,701
3,506,164,033 2,741,120,780
Profit Before Tax 2,517,179,418 1,903,415,519
Tax Expense (Refer Note 4 - Schedule P)
Current Tax 565,438,050 416,894,000
Fringe Benefit Tax - 3,308,000
Wealth Tax 694,760 759,960
Deferred Tax Benefit (33,854,695) (20,918,303)
Income Tax of earlier years (88,469) -
532,189,646 400,043,657
Profit After Tax and before prior period items 1,984,989,772 1,503,371,862
Prior period expense, net of tax 27,444,953 -
(Refer Note 25- Schedule P)
Profit After Tax 1,957,544,819 1,503,371,862
Balance brought forward from previous year 2,274,109,516 1,766,363,716
Profit Available for Appropriation 4,231,654,335 3,269,735,578
Dividend
Interim 1,264,375,000 541,875,000
Proposed Final Dividend 177,421,100 180,625,000
Total 1,441,796,100 722,500,000
Dividend Tax on Interim and Proposed final dividend 238,766,646 122,788,876
Transfer to General Reserve 195,754,482 150,337,186
Balance carried to Balance Sheet 2,355,337,107 2,274,109,516
4,231,654,335 3,269,735,578
Basic and Diluted Earnings Per Share - Nominal value 271.61 208.08
of Rs.10
Number of Shares used in Computing Earnings Per 7,207,093 7,225,000
Share (Refer Note 23-Schedule P)
Significant Accounting Policies and Notes to the Accounts P

The schedules referred to above and notes to accounts form an integral part of the Profit and Loss Account.

As per our report of even date.

For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants

per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava

Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer
Shrikant Dev
Company Secretary
Mumbai, February 14, 2011
57
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Cash Flow Statement

for the year ended December 31, 2010

(Rupees)
Year Ended Year Ended
December December
31, 2010 31, 2009
A. Cash Flow from Operating Activities :
Profit before tax 2,517,179,418 1,903,415,519
Adjustments for :
Depreciation 202,085,414 138,792,701
Provision for leave encashment 32,277,116 28,779,951
Provision for gratuity (Refer Note 25- Schedule P) 22,472,536 (11,697,236)
Unrealised Foreign exchange loss 7,176,625 4,730,151
Loss / (Profit)on sale of fixed assets (250,971,101) 6,260,835
Profit on sale of investments (355,262,165) (96,467,976)
Provision for bad debts 49,702,921 46,223,090
Interest on deposits (71,261,822) (103,316,981)
Foreign Currency Translation Reserve (2,880,388) -
Interest on loan to subsidiary (2,694,835) (3,472,603)
Dividend Income - Other Investments (6,603,721) (3,932,500)
Dividend income from current investments (23,732,040) (4,062,840)
Operating profit before working capital changes 2,117,487,958 1,905,252,111
Movements in working capital
- (Increase)/decrease in sundry debtors (326,090,312) 57,239,978
- (Increase)/decrease in sundry deposits 81,319,460 (125,816,612)
- (Increase)/decrease in loans 88,570 (2,935,407)
- (Increase)/decrease in advances 39,301,568 (7,693,160)
- (Increase)/decrease in accrued revenue 36,219,356 (35,532,491)
- Increase/(decrease) in sundry creditors (66,101,765) 243,355,536
- Increase/(decrease) in fee received in advance 39,128,197 83,422,182
- Increase/(decrease) in other liabilities (22,980,349) 11,809,574
Cash generated from operations 1,898,372,683 2,129,101,711
- Taxes paid (548,230,556) (369,624,276)
Net cash generated from operating activities - (A) 1,350,142,127 1,759,477,435
B. Cash flow from investing activities :
Purchase of fixed assets (93,092,109) (755,687,962)
Proceeds from sale of fixed assets 318,967,166 5,108,651
Investments in mutual funds (100,000,000) (804,062,841)
Sale proceeds from investments in mutual funds 1,016,997,252 950,569,979
Investment in fixed deposits (865,469,188) (406,398,250)
Proceeds from fixed deposit maturity/renewal 607,586,055 602,837,790
Payment made for acquisition of Pipal Research Analytics (111,292,051) -
and Information Services India Private Limited
Investment in National Commodity and Derivative Exchange (99,000,000) -
Limited
Contd...

58
 Ready for the next level.

Cash Flow Statement

for the year ended December 31, 2010

(Rupees)
Year Ended Year Ended
December December
31, 2010 31, 2009
Sale proceeds from Investment in National Commodity and 374,433,189 -
Derivative Exchange Limited
Investment in Irevna Limited, UK (144,760,380) -
Sale proceeds from investments in Gas Strategies Group 58,728,000 -
Limited
Interest on deposits 50,211,339 108,761,860
Dividend Income - Other Investments 6,603,721 3,932,500
Dividend income from current investments 23,732,040 4,062,840
Net cash generated from/(used in) investing activities - (B) 1,043,645,034 (290,875,433)
C. Cash flow from financing activities :
Dividend and dividend tax paid (1,680,735,331) (927,981,037)
Payment towards Buy Back of Shares (Refer Note 23- (796,858,024) -
Schedule P)
Interest on loan to subsidiary 2,694,835 3,472,603
Loan (given) / repaid to Subsidiary (Net) (302,235,982) (10,000,000)
Net cash generated from/(used in) financing activities - (C) (2,777,134,502) (934,508,434)
Net Increase/(decrease) in cash and cash equivalents (383,347,341) 534,093,568
(A+B+C)
Cash and cash equivalents - Opening balance 727,316,190 193,222,622
Cash and Cash Equivalents - Closing balance 343,968,849 727,316,190
Net Increase/(decrease) in Cash and Cash Equivalents (383,347,341) 534,093,568
Components of Cash and Cash Equivalents as at *
With banks on current account 343,968,849 727,316,190
343,968,849 727,316,190
*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.
As per our report of even date.
For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants

per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava

Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011
59
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

(Rupees)
December December
31, 2010 31, 2009
Schedule A:
Share Capital
Authorised Capital:
10,000,000 (P.Y. 10,000,000) Equity Shares of Rs.10 each 100,000,000 100,000,000
Issued, Subscribed and Paid Up:
7,096,844 (P.Y. 7,225,000) Equity Shares of Rs. 10 each fully paid up 70,968,440 72,250,000
[Of the above, 600,000 (P.Y. 600,000) Equity Shares are held by
Standard & Poor's International LLC, USA and 3,120,948 (P.Y.
3,120,948) Equity Shares are held by S&P India, LLC (a wholly-
owned subsidiary of The McGraw-Hill Companies, Inc., The
Ultimate Holding Company)]
(Refer Note 23, Schedule P)
Total 70,968,440 72,250,000

Schedule B:
Reserves and Surplus
Securities Premium Account
Opening Balance 474,890,071 474,890,071
Less:- Used towards buy back of equity shares (Refer Note 23, (474,890,071) -
Schedule P)
Total - 474,890,071
Capital Reserve 122,232,111 122,232,111
Capital Redemption Reserve
Opening Balance -
Add:- Transfer on account of buy back of equity shares (Refer Note 1,281,560 -
23, Schedule P)
Total 1,281,560 -
Profit And Loss Account 2,355,337,107 2,274,109,516
General Reserve
Opening Balance 1,178,781,699 1,028,444,513
Add : Transferred From Profit And Loss Account 195,754,482 150,337,186
Less :Transfer To Capital Redemption Reserve Account (Refer (1,281,560) -
Note 23, Schedule P)
Less :Used Towards Buy Back Of Equity Shares (Refer Note 23, (320,686,393) -
Schedule P)
Total 1,052,568,228 1,178,781,699
Hedging Reserve Account 25,548,217 -
Foreign Currency Translation Reserve (2,880,388) -
Total 3,554,086,835 4,050,013,397

60
 Schedule C:
Fixed Assets (Rupees)
Gross Block at Cost Accumulated Depreciation/Amortization Net Block
As on January Additions Deductions / As on Upto January For the Year Deductions / Upto As on As on
1, 2010 Adjustments December 1, 2010 Adjustments December December December
31, 2010 31, 2010 31, 2010 31, 2009
Buildings (Refer note 185,676,832 - 24,111,354 161,565,478 89,405,254 9,283,842 8,938,266 89,750,830 71,814,648 96,271,578
Schedules

below)
Furniture and Fixtures 135,940,901 75,794,854 13,785,654 197,950,101 68,869,130 18,347,864 7,679,033 79,537,961 118,412,140 67,071,771
(Refer note below)
Office Equipments (Refer 170,535,726 131,635,165 2,112,903 300,057,988 69,660,087 28,018,380 1,199,041 96,479,426 203,578,562 100,875,639
note below)
Computers 406,936,073 90,703,070 614,762 497,024,381 317,515,858 71,264,154 436,402 388,343,610 108,680,771 89,420,215
Vehicles 41,261,697 13,792,067 13,459,578 41,594,186 29,303,999 9,572,115 12,988,111 25,888,003 15,706,183 11,957,698
Leasehold Improvements 158,656,952 417,020,004 - 575,676,956 29,800,347 65,599,059 - 95,399,406 480,277,550 128,856,605
annexed to and forming part of the Accounts

Total 1,099,008,181 728,945,160 54,084,251 1,773,869,090 604,554,675 202,085,414 31,240,853 775,399,236 998,469,854 494,453,506
Previous Year 1,074,140,647 159,377,167 134,509,633 1,099,008,181 527,636,314 138,792,701 61,874,340 604,554,675 494,453,506

Note:Adjustment with respect to building, 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.61,265,807). Refer Schedule H.
Ready for the next level.

61
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

(Rupees)
December December December December
31, 2010 31, 2010 31, 2009 31, 2009
Schedule D:
Investments
A. Long Term (Unquoted - At Cost)
Investment in Subsidiaries (Companies
under same management)
49,999,900 (P.Y. 49,999,900) Equity Shares 49,999,900 49,999,900
of CRISIL Risk and Infrastructure Solutions
Limited of Re. 1 each, fully paid up
2,056,000 Equity Shares of Irevna 840,144,239 695,383,859
Limited, UK, of £1 each, fully paid up
(P.Y 8,000,000 Equity Shares of £
0.001 each) (Purchase of 2,048,000
equity shares of £1 each, during the
current year)
50,000 (P.Y. 50,000) Equity Shares 500,000 500,000
of CRISIL Credit Information Services
Limited of Rs.10 each, fully paid up
704,018 (P.Y.704,018) Equity Shares 10,501,668 10,501,668
of CRISIL Irevna Argentina of ARS 1
each, fully paid up
10,000 Equity Shares (P.Y. Nil) 111,292,051 -
of Pipal Research Analytics and
Information Services India Private
Limited of Rs.10 each, fully paid up.
Other Investments
637,000 (P.Y. 637,000) Equity Shares 6,369,970 6,369,970
of India Index Services and Products
Limited of Rs.10 each, fully paid up
1,875,000 (P.Y. 3,600,000) Equity 56,250,000 36,000,000
Shares of National Commodity and
Derivative Exchange Limited of
Rs.10 each, fully paid up (Purchase
900,000 share during the year & Sold
2,625,000 shares during the year)
300,000 (P.Y. 300,000) Equity Shares 13,642,500 13,642,500
of Caribbean Information and Credit
Rating Agency of US$1 each, fully
paid up
Less: Provision for diminution in value (13,642,499) 1 (13,642,499) 1
of Investment
Nil (P.Y. 40,000) Equity Shares of - 16,185,438
Gas Strategies Group Limited of £1
each,fully paid up. Sold 40,000 Equity
Shares during the year
Total Long Term (At Cost) - {A} 1,075,057,829 814,940,836

62
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

(Rupees)
December December December December
31, 2010 31, 2010 31, 2009 31, 2009
Schedule D: (Contd)
Investments
B. Current Investments (At Cost Or
Market Value, whichever is lower) *
Investments In Mutual Funds
(Unquoted)
Nil Units (P.Y.5,474,352 Units) of - 95,897,998
Rs.10 each of Sundaram BNP Paribas
Money Fund - Institutional Plan (Sold
5,474,352 Units during the current year)
Nil Units (P.Y. 62,578 Units) of Rs.10 - 100,000,000
each of Tata Liquid Super High
Investment Fund - Appreciation
(Sold 62,578 Units during the
current year)
Nil Units (P.Y.15,108,936 Units) - 151,099,933
of Rs.10 each of Principal Cash
Management Fund-Liquid Option
Institutional Premium Plan - Dividend
Reinvestment (Sold 15,108,936 Units
during the current year)
Nil Units (P.Y.148,269 Units) of - 151,151,946
Rs.10 Each of UTI Liquid Cash Plan
Institutional - Dividend reinvestment
(Sold 148,269 Units during the
current year)
Nil Units (P.Y.3,510,065 Units) of - 351,083,706
Rs.10 each of ICICI Prudential -
Institutional Liquid Plan - Dividend
Reinvestment (Sold 3,510,065 Units
during the current year)
Nil Units (P.Y.12,294,430 Units) - 150,727,255
of Rs.10 each HDFC Liquid
Fund Premium Plan - Dividend
Reinvestment (Sold 12,294,430 Units
during the current year)
Investments In Mutual Funds (Quoted)
1,000,000 Units of Rs 10 Each ICICI 100,000,000 -
Prudential FMP Series 53 - 1 Year
Plan D cumulative.
(Purchased 1,000,000 Units during the
current year)
Total Investments in Mutual Funds {B} 100,000,000 999,960,838
Total Investments {A} + {B} 1,175,057,829 1,814,901,674
*Aggregate market value of 100,343,000 1,010,359,771
Company’s investment in Unquoted
Mutual Funds

63
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

(Rupees)
December December
31, 2010 31, 2009
Schedule E:
Sundry Debtors
Debts outstanding for a period exceeding six months
- Unsecured, Considered good 38,871,267 55,589,486
- Unsecured, Considered doubtful 38,260,332 37,885,893
Other debts
- Unsecured, Considered good 925,318,476 639,389,491
Less : Provision for Doubtful Debts (38,260,332) (37,885,893)
(Refer Note 12 - Schedule P)
Total 964,189,743 694,978,977

Schedule F:
Cash and Bank Balances
Balances with Scheduled Banks
On Current Accounts 335,974,528 723,582,976
On Deposit Accounts 875,926,991 618,043,858
On Unpaid Dividend Accounts 7,994,321 3,733,214
Deposit includes Fixed Deposits with Banks Rs.9,982,393
(P.Y. Rs.9,050,586) marked as lien for Guarantees issued by
Banks on behalf of the Company. (Refer Note 3 - Schedule P)
Total 1,219,895,840 1,345,360,048

Schedule G:
Loans and Advances
(Unsecured, Considered Good)
Loans to Staff 20,379,888 20,468,458
Advance Recoverable In Cash or Kind for Value to be Received 54,888,128 94,189,696
Advance Tax (Net of provision) - 17,807,987
Sundry Deposits 372,046,672 453,366,132
Loan to Subsidiary (Refer Note 13 - Schedule P) 334,735,982 32,500,000
Total 782,050,670 618,332,273

Schedule H:
Other Current Assets
Interest Accrued on Fixed Deposits with Banks 26,964,080 5,913,597
Accrued Revenue 5,025,030 42,544,698
Interest Accrued on Loan to Irevna Limited, UK 1,300,312 -
Forward Contract Receivable 25,548,217 -
Assets held for sale (Refer note on Schedule C) 16,113,140 61,265,807
Total 74,950,779 109,724,102

64
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

(Rupees)
December December
31, 2010 31, 2009
Schedule I:
Current Liabilities
Sundry Creditors (Refer Note 5 - Schedule P) :
Due to micro, small and medium enterprises - -
Others 604,041,367 670,143,132
Fees received in advance 594,902,522 555,774,325
Unclaimed Dividend (to be credited to Investor Education & 7,994,321 3,733,214
Protection Fund, as and when due)
Other Liabilities 76,458,678 99,439,027
Total 1,283,396,888 1,329,089,698

Schedule J:
Provisions
Proposed Dividend 177,421,100 180,625,000
Corporate Dividend Tax thereon 29,467,427 30,697,219
Provision for Tax (Net of Advance Tax) 5,797 -
Provision for Leave Encashment 164,900,814 132,623,698
Provision for Gratuity (Refer Note 25- Schedule P) 56,960,430 7,042,940
Total 428,755,568 350,988,857

65
 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 Year Ended
December December
31, 2010 31, 2009
Schedule K:
Income from Operations
Income from Rating Services 2,840,877,156 2,389,016,014
Income from Research Services 2,446,243,703 2,027,218,436
Total 5,287,120,859 4,416,234,450

Schedule L:
Other Income
Interest on Deposits [TDS -Rs 6,021,547 ([Link].18,545,398)] 71,261,822 103,316,981
Interest on Loan to Subsidiary [TDS -Rs.195,745 ([Link].616,836 )] 2,694,835 3,472,603
Profit on sale of Fixed Assets (Net) 250,971,101 -
Dividend Income - Other Investments 6,603,721 3,932,500
Profit from sale of Investments (Net) 355,262,165 96,467,976
Dividend income from Current Investments 23,732,040 4,062,840
Miscellaneous Income 25,696,908 17,048,949
Total 736,222,592 228,301,849

Schedule M:
Personnel Expenses
Salaries and Bonus 1,850,301,764 1,501,246,285
Contribution to : Provident Fund 53,663,432 44,062,860
Other Funds 28,483,086 17,292,394
Staff Training and Welfare Expenses 83,505,239 52,882,683
Less : Recoveries from Subsidiaries towards Overhead Allocated (26,908,051) (20,093,924)
Total 1,989,045,470 1,595,390,298

Schedule N:
Establishment Expenses
Repairs and Maintenance - Buildings 62,386,080 64,228,740
Repairs and Maintenance - Others 65,121,325 59,848,424
Electricity 52,648,040 50,289,703
Communication Expenses 57,344,074 61,925,664
Insurance 737,719 1,480,132
Rent 377,882,978 238,796,824
Rates and Taxes 2,229,262 2,520,445
Less : Recoveries from Subsidiaries towards Overhead Allocated (5,958,016) (4,938,642)
Total 612,391,462 474,151,290

66
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

(Rupees)
Year Ended Year Ended
December December
31, 2010 31, 2009
Schedule O:
Other Expenses
Printing and Stationery 26,747,996 24,763,358
Conveyance and Travelling 137,199,732 99,194,494
Books and Periodicals 21,850,275 18,374,714
Vehicle Expenses 1,421,061 1,042,450
Remuneration to Non-whole time Directors (Refer Note 7 - Schedule P) 13,303,380 9,776,800
Business Promotion and Advertisement 18,989,323 14,074,817
Foreign Exchange Loss (net) 29,491,424 16,580,033
Professional Fees 347,745,059 179,778,515
Software Purchase & Maintenance Expenses 20,764,613 28,050,949
Provision for Bad Debts 49,702,921 46,223,090
Loss on sale of fixed assets - 6,260,835
Auditors' Remuneration (Refer Note 10 - Schedule P) 3,069,450 2,591,708
Recruitment Expenses 18,300,560 9,349,473
Sales Commission 18,483,453 76,780,929
Seminars and Conferences 1,166,381 1,440,113
Miscellaneous Expenses 5,978,613 8,070,821
Less : Recoveries from Subsidiaries towards Overhead Allocated (11,572,554) (9,566,608)
Total 702,641,687 532,786,491

Schedule P: with the Notified accounting standard by

Companies Accounting Standards Rules,
Significant Accounting Policies And Notes to
2006 as amended and the relevant
the Accounts
provisions of the Companies Act, 1956
1. Nature of Operations (‘the Act’). The financial statements
CRISIL is a globally-diversified analytical have been prepared under the historical
company providing ratings and research cost convention on an accrual basis.
services. CRISIL is India’s leading ratings The accounting policies have been
agency and the foremost provider of high- consistently applied by the Company.
end research to the world’s largest banks
2.2 Use of Estimates
and leading corporations. With sustainable
The preparation of financial statements
competitive advantage arising from strong
in conformity with generally accepted
brand, unmatched credibility, market
accounting principles requires management
leadership across businesses, and large
to make estimates and assumptions
customer base, CRISIL deliver analysis,
that affect the reported amounts of
opinions, and solutions that make markets
assets and liabilities and disclosure of
function better.
contingent liabilities at the date of the
2. Statement of Significant Accounting financial statements and the results of
Policies operations during the reporting year end.
Although these estimates are based upon
2.1 Basis of Preparation
management’s best knowledge of current
The financial statements have been
events and actions, actual results could
prepared to comply in all material respects
differ from these estimates.
67
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

2.3 Fixed Assets the asset to its working condition for its
Fixed assets are stated at cost, less intended use. Items of fixed asset held
accumulated depreciation and impairment for disposal are stated at lower of the net
losses if any. Cost comprises the purchase book value and net realisable value and are
price and any attributable cost of bringing shown under other current assets.

2.4 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, whichever
is higher.
Assets Rates (SLM) Schedule XIV
Rates (SLM)
Buildings 5.00% 1.63%
Furniture & Fixtures 10.00% 6.33%
Office Equipments 10.00% 4.75%
Computers 33.33% 16.21%
Vehicles 33.33% 9.50%
Leasehold Improvements are amortized over the lease term or useful life of the asset, whichever is
less. Leasehold improvements are amortized over the period of 8.5 years to 9 years in the current
year Fixed assets having original cost of less than Rs. 5,000 individually, are depreciated fully in the
year / period of purchase.

2.5 Impairment expense in the Profit and Loss Account on

The carrying amounts of assets are a straight-line basis over the lease term.
reviewed at each balance sheet date 2.7 Investments
if there is any indication of impairment Investments that are readily realisable and
based on internal/external factors. An intended to be held for not more than a year
impairment loss is recognized wherever are classified as current investments. All
the carrying amount of an asset exceeds other investments are classified as long-
its recoverable amount. The recoverable term investments. Current investments
amount is the greater of the asset’s net are carried at lower of cost and fair value
selling price and value in use. In assessing determined on an individual investment
value in use, the estimated future cash basis. Long-term investments are carried
flows are discounted to the present value at cost. However, provision for diminution
at interest rate specific to the asset and in in value is made to recognise a decline
case where the specific rate is not available other than temporary in the value of the
at the weighted average cost of capital investments.
which is adjusted for country risk/currency
risk. After impairment, depreciation is 2.8 Revenue Recognition

provided on the revised carrying amount Revenue is recognized to the extent that it
of the asset over its remaining useful life is probable that the economic benefits will
flow to the Company and the revenue can
2.6 Operating Leases
be reliably measured.
Leases where the lessor effectively retains
substantially all the risks and benefits Income from Operations

of ownership of the leased item, are Income from Operations comprises of

classified as operating leases. Operating income from initial rating and surveillance
lease payments are recognized as an services, global analytical services, credit
assessments, special assignments and

68
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

subscriptions to information products are due. There are no other obligations

and services. Initial rating fees are other than the contribution payable to the
deemed to accrue at 94% on the date respective authorities or trusts.
the rating is awarded and the balance Gratuity liability is provided for on the basis
6% is recorded equally over 11 months of an actuarial valuation on projected unit
subsequent to the month in which the credit method made at the end of each
rating was awarded. Surveillance fee and financial year.
subscription to information products are
Short term compensated absences are
accounted on a time proportion basis.
provided for based on estimates. Long
Fees received for credit assessments and
term compensated absences are provided
special assignments are fully recognised
for based on actuarial valuation. The
as income in the year in which such
actuarial valuation is done as per projected
assessments/assignments are carried
unit credit method. Actuarial gains/losses
out or milestones achieved or as per
are immediately taken to profit and loss
agreement with client.
account and are not deferred.
Interest Income
2.10 Foreign Currency Transactions
Revenue is recognised on a time
Initial Recognition
proportion basis taking into account
Foreign currency transactions are
the amount outstanding and the rate
recorded in reporting currency by
applicable.
applying to the foreign currency amounts
Dividend Income the average exchange rates for the month
Revenue is recognised when the in which the transaction takes place.
shareholders’ right to receive payment is
Conversion
established by the balance sheet date.
Foreign currency monetary items are
Dividend from subsidiaries is recognised
reported using the closing rates. Non
even if same are declared after the balance
monetary items which are carried in terms
sheet date but pertains to period on or
of historical costs denominated in a foreign
before the date of balance sheet as per the
currency are reported using the exchange
requirement of schedule VI of the Act.
rate at the date of transaction.
Profit /(loss) on sale of investment
Exchange Difference
Profit /(loss) on sale of investment is
Exchange differences, arising on
accounted when the sale / transfer deed is
settlement of monetary items or on
executed. On disposal of such investments,
reporting Company’s monetary items at
the difference between the carrying
rates different from those at which they
amount and the disposal proceeds, net of
were initially recorded during the year, or
expenses, is recognised in the Profit and
reported in previous financial statements,
Loss account. The carrying amount of
are recognised as income or as expense
investments is determined using weighted
in the year in which they arise.
average cost method.
Forward Contract
2.9 Retirement and other employee benefits
Forward contracts are entered into, to
Retirement benefits in the form of Provident
hedge the foreign currency risk of the
Fund is a defined contribution scheme
underlying outstanding at the balance
and the contributions are charged to the
sheet date and also to hedge the foreign
Profit and Loss Account of the year when
currency risk of firm commitment or
the contributions to the respective funds
highly probable forecast transactions.

69
 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 that relate to a firm commitment or a

contracts that are entered to hedge the highly probable forecast transaction and
foreign currency risk of the underlying that do not qualify for hedge accounting,
outstanding at the balance sheet date have been recorded at fair value at the
arising at the inception of each contract, reporting date and the resultant gain /
is amortised as income or expense over loss has been credited / debited to profit
the life of the contract. Any profit or loss and loss account for the year.
arising on the cancellation or renewal of
2.11 Taxes On Income
forward contracts is recognised as income
Tax expense comprises of current,
or as expense for the year.
deferred, and wealth tax. Current income
In relation to the forward contracts entered tax and wealth tax is measured at the
into, to hedge the foreign currency risk amount expected to be paid to the tax
of the underlying outstanding at the authorities in accordance with the Indian
balance sheet date, the foreign exchange Income Tax Act of 1961 enacted in India.
difference is calculated as the difference Deferred income taxes reflects the impact
between the foreign currency amount of of current year timing differences between
the contract translated at the exchange taxable income and accounting income for
rate at the reporting date or the settlement the year and reversal of timing differences
date where the transaction is settled during of earlier years.
the reporting year, and the corresponding Deferred tax is measured based on the
foreign currency amount translated at the tax rates and the tax laws enacted or
later of the date of inception of the forward substantively enacted at the balance
exchange contract and the last reporting sheet date. Deferred tax assets and
date. Such exchange differences are deferred tax liabilities are offset, if a legally
recognised in the profit and loss account in enforceable right exists to set off current
the reporting year in which the exchange tax assets against current tax liabilities
rates change. and the deferred tax assets and deferred

The Company has adopted the principles tax liabilities relate to the taxes on income

of AS 30 “Financial Instruments: levied by same governing taxation laws.

Deferred tax assets are recognised only to
Recognition and Measurement” in
the extent that there is reasonable certainty
respect of its derivative financial
that sufficient future taxable income will
instruments that are not covered by
be available against which such deferred
AS 11 “Accounting for the Effects of
tax assets can be realised. In situations
Changes in Foreign Exchange Rates”
where the company has unabsorbed
and that relate to a firm commitment or
depreciation or carry forward tax losses,
a highly probable forecast transaction. In
all deferred tax assets are recognised
accordance with AS 30, such derivative
only if there is virtual certainty supported
financial instruments, which qualify for
by convincing evidence that they can be
cash flow hedge accounting and where
realised against future taxable profits.
the Company has met all the conditions
of AS 30, are fair valued at the balance At each balance sheet date, the Company
sheet date and the resultant gain / loss is re-assesses unrecognised deferred
credited / debited to the Hedging Reserve tax assets. It recognises unrecognised
Account included in the Reserves deferred tax assets to the extent that it has
and Surplus. This gain / loss would be become reasonably certain that sufficient
recorded in the profit and loss account future taxable income will be available
when the underlying transactions affect against which such deferred tax assets
earnings. Other derivative instruments can be realised.
70
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

The carrying amount of Deferred Tax Unallocated items:

Assets are reviewed at each Balance Unallocable income and expenses
Sheet date. The Company writes down the includes general corporate income and
carrying amount of a Deferred Tax Asset expense items which are not allocated to
to the extent it is no longer reasonably any business segment.
or virtually certain, as the case may be,
2.13 Earnings Per Share
that sufficient future taxable income will
Basic earnings per share are calculated
be available against which Deferred Tax
by dividing the net profit or loss for the
Asset can be realised. Any such write
period attributable to equity shareholders
down is reversed to the extent that it
by the weighted average number of equity
becomes reasonably or virtually certain,
shares outstanding during the period.
as the case may be, that sufficient future
taxable income will be available. For the purpose of calculating diluted
earnings per share, the net profit or
2.12 Segment Reporting Policies
loss for the period attributable to equity
Segment Policies:
shareholders and the weighted average
The Company prepares its segment number of shares outstanding during the
information in conformity with the period are adjusted for the effects of all
accounting policies adopted for preparing dilutive potential equity shares.
and presenting the financial statements of
the company as a whole. 2.14 Provisions
A provision is recognised when an
Identification of segments:
enterprise has a present obligation as a
The Company’s operating businesses result of past event; it is probable that an
are organized and managed separately outflow of resources will be required to
according to the nature of products and settle the obligation, in respect of which a
services provided, with each segment reliable estimate can be made. Provisions
representing a strategic business unit are not discounted to its present value and
that offers different products and serves are determined based on best estimate
different markets. The analysis of required to settle the obligation at the
geographical segments is based on the balance sheet date. These are reviewed
geographical locations of customers. at each balance sheet date and adjusted
Inter segment transfers: to reflect the current best estimates.
The Company generally accounts for 2.15 Cash and Cash Equivalents
intersegment services and transfers as Cash and cash equivalents in the cash
if the services or transfers were to third flow statement comprise cash at bank and
parties at current market prices. in hand and short-term investments with an
Allocation of common costs: original maturity of three months or less.
Common allocable costs are allocated to
each segment according to the relative
contribution of each segment to the total
common costs.

71
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

3. Details of Contingent Liabilities and Capital Commitments are as under :

(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
1. Bank Guarantee in the normal course of business 9,982,393 9,050,586
2. Disputed Income Tax & Sales Tax Demand:
(i) Pending before Appellate authorities in respect of 16,070,858 23,359,888
which the Company is in appeal
(ii) Decided in Company’s favour by Appellate Authorities 22,513,543 18,212,021
and Department is in further appeal
3. Estimated amount of contracts (net of advances) remaining 17,797,299 89,025,159
to be executed on capital account and not provided for
Total 66,364,093 139,647,654

4. Income Tax 5. The Company has the process of identification

The tax year of the Company being the year of ‘suppliers’ registered under the “The
ending March 31, 2011, the provision for tax Micro, Small and Medium Enterprises
for the year is the aggregate of the provision Development (‘MSMED’) Act, 2006” by
made for the three months ended March 31, obtaining confirmations from suppliers.
2010 and the provision for the nine months There are no Micro, Small and Medium
upto December 31, 2010. The tax provision Enterprises, as defined in the Micro, Small,
for nine months has been arrived at using the Medium Enterprises Development Act, 2006
effective tax rate for the period April 1, 2010 to whom the company owes dues on account
to March 31, 2011, the ultimate tax liability of of principal amount together with interest and
which will be determined for the period April 1, accordingly no additional disclosures have
2010 to March 31, 2011. been made.

6. Components of Deferred Tax Assets and Liabilities are:

(Rupees)
As on As on
Dec 31, 2010 Dec 31, 2009
Deferred Tax Liability
Depreciation / Amortisation (67,477,222) (29,313,871)
Tax attributable towards tax holiday deduction (6,500,000) -
Disallowance under section 40(a) - (728,727)
Total (A) (73,977,222) (30,042,598)
Deferred Tax Asset
Provision for Leave Encashment 55,498,929 44,590,724
Provision for Gratuity 15,186,273 2,007,830
Lease Rent amortisation 32,016,485 18,606,511
Provision for Bonus and Commission 67,865,625 29,096,571
Provision for bad debts 14,307,731 14,892,808
Deferment of Rating fees 8,826,779 8,756,658
Disallowance under section 40(a) 2,038,599 -
Total (B) 195,740,421 117,951,102
Net Deferred Tax Asset / (Liabilities) (A-B) 121,763,199 87,908,504

72
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

7. Managerial Remuneration:
(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Managing Director :
Salary 13,002,119 11,310,956
Commission 10,670,000 6,800,000
Contribution to Provident Fund 467,964 428,400
Perquisites 490,438 461,586
Total 24,630,521 19,000,942
Non - Whole time Directors:
Fees paid 1,020,000 1,000,000
Commission 12,283,380 8,776,800
Total 13,303,380 9,776,800
Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the
Company as a whole, the amount pertaining to Directors is not included above.

Computation of net profit in accordance with Section 349 of the Companies Act, 1956, for calculation
of commission payable to Directors:
(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Profit before tax as per Profit and Loss Account 2,517,179,418 1,903,415,519
1. Remuneration to Whole-time Directors 24,630,521 19,000,942
2. Remuneration to Non Whole-time Directors 13,303,380 9,776,800
3. Provision for Doubtful Debts 49,702,921 46,223,090
4. (Profit)/Loss on Sale of Fixed Assets (250,971,101) 6,260,835
5. Profit from sale of long term Investments (Net) (338,225,751) -
Net Profit under Section 198 2,015,619,388 1,984,677,186
Managerial Remuneration Payable to whole-time 24,630,521 19,000,942
director upto 5% of the Net Profit (as computed above)
Rs.100,780,969 (P.Y. Rs.99,233,859), restricted to :
Commission Payable to non whole-time directors upto 12,283,380 8,776,800
3% of the Net Profit (as computed above) Rs.60,468,581
([Link].59,540,316), restricted to :
The Company depreciates fixed assets at the rates which are higher than the rates prescribed
in Schedule XIV of the Act. Accordingly no adjustments are made on account of depreciation in
computation of profit as per section 349 of the Act.
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
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

8. Earnings in foreign currency (on accrual basis):

(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Rendering of Rating and Research Services 2,788,221,401 2,341,548,985
Dividend from Subsidiaries / Associates - 747,500
Total 2,788,221,401 2,342,296,485

9. Payments in Foreign Currency

a) Value of imports calculated on C.I.F basis
The value of imports calculated on C.I.F basis for capital goods was Nil (P.Y Rs.111,597,474)
(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
b) Expenditure in foreign currency
Foreign travel 58,863,864 26,983,567
Sales Commission 18,545,553 77,204,417
Other Expenses 125,931,994 13,665,835
Total 203,341,411 117,853,819

10. Auditors’ Remuneration includes :

(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
As auditor 2,667,500 2,425,000
In any other matter:
Certification work 357,500 125,000
Out of Pocket Expenses 44,450 41,708
Total 3,069,450 2,591,708

11. Amount remitted during the year in foreign currency, on account of dividends:
(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Number of shareholders 2 2
Number of equity shares of Rs 10 each held by them on 3,720,948 3,720,948
which dividend was paid
Amount remitted (Rs) 65,116,590 409,304,280

12. Sundry debtors includes amount receivable from following Companies under same
management:
(Rupees)
As on As on
Dec 31, 2010 Dec 31, 2009
Irevna LLC, U.S. 215,670,743 189,475,071
Irevna Limited, U.K. 250,332,991 88,381,661
Irevna Poland [Link].o 4,334,204 -
Standard & Poor’s LLC 108,087,894 88,370,218
Standard & Poor’s South Asia Services Private Limited 3,508,663 9,791,805
McGraw-Hill Education India Private Limited 345,602 -
McGraw-Hill Education Companies Inc. - 9,851
Total 582,280,097 376,028,606
74
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

13. Loans and advances in the nature of loans given to companies under same management:
(Rupees)
As on As on
Dec 31, 2010 Dec 31, 2009

CRISIL Risk and Infrastructure Solutions Limited - 32,500,000

Irevna Limited (UK) 334,735,982 -
Maximum Amount Outstanding During the year 367,235,982 50,219,166

14. Segment Reporting for corporates, banks, small and medium

Business Segments: enterprises (SME), training in the credit rating
field, credit analysis services, grading services
The Company has two major business
and global analytical services
segment: Ratings and Research. A description
Research segments provides high end
of the types of products and services provided
equity research, industry reports, customised
by each reportable segment is as follows:
research assignments, subscription to data
Rating services includes credit ratings services and IPO gradings
Segment Reporting for the year ended December 31, 2010
(Rupees)
Particulars Business segments
Total
Ratings Research
Operating Revenue 2,840,877,156 2,446,243,703 5,287,120,859
Segment Results 1,183,754,363 837,575,106 2,021,329,469
Add / (Less) Unallocables:
1. Unallocable Income
Interest Income 73,956,657
Profit on sale of investments 355,262,165
Profit on sale of fixed assets 250,971,101
Others 56,032,669
2. Unallocable Expenditure (38,287,229)
3. Depreciation (202,085,414)
Profit Before Tax 2,517,179,418
Tax Expense (532,189,646)
Profit After Tax but before prior period item 1,984,989,772
Prior period expense, net of tax 27,444,953
(Refer Note 25- Schedule P)
Profit After Tax 1,957,544,819
Non-cash expenses other than 88,823,285 43,074,240 131,897,525
depreciation and amortisation
Segment Assets*
Investments - 968,307,928 968,307,928
Segment Debtors 360,109,568 642,340,507 1,002,450,075
Segment Liabilities*
Fees Received in advance 404,679,406 190,223,116 594,902,522

Revenue by Geographic Segments (Rupees)

Country
India 2,498,899,458
United Kingdom 1,307,308,826
United States Of America 1,271,276,105
Others 209,636,470
Total 5,287,120,859
75
 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 31,2009

(Rupees)
Particulars Business segments
Total
Ratings Research
Operating Revenue 2,389,016,014 2,027,218,436 4,416,234,450
Segment Results 1,007,409,721 812,421,949 1,819,831,670
Add / (Less) Unallocables :
1. Unallocable Income
Interest Income 106,789,584
Profit on sale of investments 96,467,976
Profit on sale of fixed assets -
Others 23,802,039
2. Unallocable Expenditure (4,683,049)
3. Depreciation (138,792,701)
Profit Before Tax 1,903,415,519
Tax Expense (400,043,657)
Profit After Tax but before prior period item 1,503,371,862
Prior period expense, net of tax
Profit After Tax 1,503,371,862
Non-cash expenses other than depreciation 20,770,218 8,496,782 29,267,000
and amortisation
Segment Assets* :
Investments - 712,255,497 712,255,497
Segment Debtors 349,169,666 383,695,204 732,864,870
Segment Liabilities* :
Fees Received in advance 377,381,301 159,084,403 536,465,704

Revenue by Geographic Segments (Rupees)

Country
India 2,074,685,465
United Kingdom 1,157,447,660
United States Of America 1,096,712,290
Others 87,389,035
Total 4,416,234,450
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, as the Fixed assets and services are used interchangeably between
segments. The Company believes that it is currently not practical to provide segment disclosure,
except as disclosed above, relating to total assets and liabilities since a meaningful segregation of
the available data is not feasible.

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.

76
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

15. List of Related Parties

Parties Relationship
Related parties where control exists
The McGraw-Hill Companies, Inc The Ultimate Holding Company
CRISIL Risk and Infrastructure Solutions Limited Subsidiary
Irevna Limited, UK Subsidiary
Irevna LLC, USA Subsidiary of Irevna Limited, UK
CRISIL Credit Information Services Limited Subsidiary
CRISIL Irevna Poland [Link].o Subsidiary of Irevna Limited, UK
CRISIL Irevna Argentina S.A. Subsidiary
CRISIL Irevna Information Technology (Hangzhow) Co., Ltd* Subsidiary
Pipal Research Analytics and Information Services India Subsidiary
Private Limited
Other Related parties
S&P India, LLC Fellow Subsidiary
Standard & Poor’s LLC Fellow Subsidiary
Standard & Poor’s International LLC, USA Fellow Subsidiary
Standard & Poor’s South Asia Services Private Limited Fellow Subsidiary
McGraw-Hill Education India Private Limited Fellow Subsidiary
India Index Services and Products Limited Joint Venture
Key Management Personnel
Roopa Kudva Managing Director & Chief
Executive Officer
*Company incorporated but yet to commence business operations.

16. Related Party Disclosure

(Rupees)
Name of the related party Nature of transaction Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Standard & Poor’s LLC Professional Services 814,068,721 714,369,995
Rendered
Reimbursement of expenses 1,051,712 12,255
Amount Receivable 108,087,894 88,370,218
S&P India, LLC Dividend 624,189,600 312,094,800
Share Capital Outstanding 31,209,480 31,209,480
Standard & Poor’s South Professional Services 12,145,726 7,141,028
Asia Services Private Rendered
Limited Reimbursement of expenses 6,310,462 18,220,525
Amount Receivable 3,508,663 9,791,805
Standard & Poor’s Dividend 120,000,000 60,000,000
International LLC, USA Share Capital Outstanding 6,000,000 6,000,000
The McGraw-Hill Expenses Recovered 35,441 61,018
Companies, Inc Amount Receivable - 9,851
McGraw-Hill Education Expenses Recovered 377,179 -
India Private Limited Amount Receivable 345,602 -

77
 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 Nature of transaction Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
CRISIL Risk and Revenue share paid 175,000 -
Infrastructure Solutions
Limited
Revenue share received 1,615,297 4,382,333
Loan given during the year - 42,500,000
Loan repaid during the year 32,500,000 32,500,000
Loan Outstanding - 32,500,000
Interest Income 1,394,523 3,472,603
Expenses Recovered 60,684,151 18,597,585
Share of overhead expenses 44,438,621 34,599,178
received
Amount Receivable (Net) 11,060,017 6,997,204
Investment Outstanding 49,999,900 49,999,900
Irevna Limited, UK Professional Services 874,969,400 705,583,924
Rendered
Sales Commission Expense 4,707,956 56,747,690
Reimbursement of Expenses 5,563,050 1,310,755
Amount Receivable (net) 250,332,991 83,641,360
Investment Outstanding 840,144,239 695,383,859
Loan 334,735,982 -
Interest Income 1,300,227 -
Irevna LLC, USA Professional Services 506,946,987 400,326,156
Rendered
Sales Commission Expense 13,837,597 20,033,239
Reimbursement of Expenses - 588,427
Amount Receivable (net) 215,670,743 187,756,642
CRISIL Credit Information Investment Outstanding 500,000 500,000
Services Limited
CRISIL Irevna Argentina, Investment Outstanding 10,501,668 10,501,668
S.A. Professional Fees 78,486,170 -
Amount Payable (net) 9,400,607 -
CRISIL Irevna Poland Professional Fees 27,796,743 5,200,946
[Link].o Amount Payable (net) 2,992,129 -
Reimbursement of Expenses 7,365,795 -
India Index Services and Dividend Received 4,458,979 3,185,000
Products Limited Investment Outstanding 6,369,970 6,369,970
Pipal Research Analytics and Investment Outstanding 111,292,051 -
Information Services India
Private Limited
*Roopa Kudva Remuneration paid 24,630,521 19,000,942

*Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for
the Company as a whole, the amount pertaining to directors is not included above.

78
 Ready for the next level.

Schedules
annexed to and forming part of the Accounts

17. The Company has 49% interest in India Index Services and Products Limited (a joint venture in India
with National Stock Exchange). As per the Accounting Standard relating to Financial Reporting
of Interest in Joint Venture (AS 27) notified by Companies Accounting Standards Rules, 2006 as
amended,the details of interest in the Joint Venture are as under :

(Rupees)
Unaudited
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Assets 169,426,889 122,961,959
Reserves and Surplus 151,399,383 106,994,133
Liabilities 11,657,506 9,597,826
Income 86,332,820 66,213,270
Expenses 15,470,305 10,057,344
Tax Expense 22,353,567 17,611,858
Contingent Liability 9,034,660 3,238,192

18. Operating Lease

The Company has taken certain office premises on non cancellable operating lease basis. Some of
these agreements have a price escalation clause. Details as regards payments and future commitments
are as under :

(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Lease Payment recognised in Profit and Loss Account 377,882,978 238,796,824
Future Minimum Lease Payments :
Not later than One Year 356,023,588 421,533,034
Later than One Year & not later than Five Years 1,834,142,069 2,412,726,949
Later than FiveYears 1,740,130,224 1,202,509,669
Total 3,930,295,881 4,036,769,652

19. Gratuity and Leave Encashment Benefits The following tables summarise the
The Company has a defined benefit gratuity components of net benefit expense
plan. Every employee who has completed recognised in the Profit and Loss
five years or more of service gets a gratuity Account and the funded status and
on departure at 15 days salary (last drawn amounts recognised in the Balance
salary) for each completed year of service. Sheet for the respective plans.
The scheme is funded with an insurance
company in the form of a qualifying insurance Profit and Loss Account:
policy. Net employee benefit expense
(recognised in Employee Cost)

79
 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 Year Ended
Dec 31, 2010 Dec 31, 2009
Current Service cost 14,275,170 12,961,540
Interest cost on defined benefit obligation 4,093,320 2,806,950
Expected return on plan assets (3,434,500) (2,574,720)
Net actuarial (gain)/ loss recognised in the year 40,819,410 3,277,670
Losses/(Gains) on “Acquisition/Divestiture” - -
Net Gratuity Benefit Expense 55,753,400 16,471,440

Balance Sheet:
Details of Provision for Gratuity Benefit
(Rupees)
As on As on
Dec 31, 2010 Dec 31, 2009
Present value of funded obligations 108,091,000 53,926,870
Less: Fair value of plan assets (51,130,570) (46,883,930)
Net Liability 56,960,430 7,042,940

Changes in the present value of the defined benefit obligation are as follows:
Opening Defined Benefit Obligation 53,926,870 41,632,929
Current Service Cost 14,275,170 12,961,540
Interest Cost 4,093,320 2,806,950
Actuarial (gain)/loss 43,812,226 1,820,551
Benefits paid (8,016,586) (5,295,100)
Closing Defined Benefit Obligation 108,091,000 53,926,870

Changes in the fair value of plan assets are as follows:

Opening Fair value of plan assets 46,883,930 22,892,753
Expected return on plan assets 3,434,500 2,574,720
Actuarial gain/ (loss) 2,992,816 (1,457,120)
Contribution by employer 5,835,910 28,168,677
Asset acquired on acquisition - -
Benefits paid (8,016,586) (5,295,100)
Closing Fair Value of Plan Assets 51,130,570 46,883,930

Details of experience adjustment on plan assets and liabilities are as follows :

(Rupees)
As on As on As on As on
Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010
Experience adjustment on plan 3,334,554 3,533,558 (1,457,120) 2,992,816
assets
Experience adjustment on plan 3,252,147 (142,570) (2,662,050) (41,461,230)
liabilities

80
 Ready for the next level.

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 Year Ended
Dec 31, 2010 Dec 31, 2009
Investment with Insurer 100% 100%
Actual return on plan assets (Based on interest rate declared 9.25% 9.30%
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, applicable to the period over which the obligation is to be settled. The principal assumptions
used in determining Gratuity for the Company’s plans is as below:
(Rupees)
Year Ended Year Ended
Dec 31, 2010 Dec 31, 2009
Discount Rate 8.20% 8.20%
Estimated rate of return on plan assets 8.50% 7.50%
Expected Employee Turnover
Age : 21-44 Years 6.5% 6.5%
Age : 44-57 Years 6.0% 6.0%
Expected Employer’s Contribution next year (Rupees) 32,500,000 30,000,000
The estimates of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(Rupees)
As on As on
20. Details of unhedged foreign exposure Dec 31, 2010 Dec 31, 2009
Current Asset 652,667,781 379,493,153
Current Liability 16,727,711 6,458,730

21. CRISIL Limited sold balance 10% stake in Gas Strategies Group Limited in September 2010.

22. During the current year, company has initiated a hedge programme to mitigate foreign exchange
(forex) related risk. Initially the hedge programme covered only forex receivable for which CRISIL
followed AS 11 “Accounting for the Effects of Changes in Foreign Exchange Rates”. However, at
the later part of the year, CRISIL has increased the hedge programme to cover forecasted revenue
as against receivable as a part of risk management strategy. 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 Amount Amount in INR
USD 16,000,000 752,973,336
GBP 6,000,000 442,547,500
EUR 3,000,000 187,153,750

81
 standalone financial statements
Cash Flow Statement Schedules forming part of Accounts Additional Information

Schedules
annexed to and forming part of the Accounts

23. In accordance with Sec 77A, 77AA and 77B amount of Rs. 320,686,393 being the balance
of the Companies Act,1956 and pursuant premium on buy back has been appropriated
to the buy back announcement made by the from General Reserve. The Board of Directors,
Company on September 9, 2010 the Company at its meeting held on September 9, 2010
has bought back from the open market through approved the buyback of equity shares of the
stock exchanges 128,156 equity shares of Company.
Rs. 10 each during the year for a total
24. On 3rd December 2010, CRISIL Limited
consideration of Rs.796,858,024 which
acquired 100% ownership in Pipal Research
have been subsequently extinguished.
Analytics and Information Services India
Consequently, an amount of Rs.1,281,560
Private Limited.
being the nominal value of equity shares
bought back has been transferred to Capital 25. Prior period item includes gratuity expense
Redemption Reserve Account from General Rs.27,444,953 (net of tax).
Reserve. An amount of Rs. 474,890,071 26. Previous year comparatives
being the premium on buy back has been Previous year’s figures have been regrouped
appropriated from Securities Premium. An where necessary to conform to current year’s
classification.

As per our report of even date.

For S.R. BATLIBOI & CO.

Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants

per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava

Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011

82
 Statement pursuant to section 212 of the Companies Act ,1956 relating to Subsidiary Company
(Rupees)
1. Name of the subsidiary company CRISIL Risk and CRISIL Credit CRISIL Irevna CRISIL Irevna Irevna Limited, UK Irevna LLC, US Pipal Research
Infrastructure Information Argentina S.A. Poland [Link].o. Analytics and
Solutions Limited Services Limited Information
Services (I) Pvt.
Ltd.
Schedules

2. The financial period of the subsidiary Company ended on December December December December December December December
31, 2010 31, 2010 31, 2010 31, 2010 31, 2010 31, 2010 31, 2010
3. (a) Number of shares in the subsidiary held by CRISIL 49,999,900 Equity 50,000 Equity 741,072 Equity 100 Equity Shares 2,056,000 Equity 1 Equity Share of 10,000 Equity
Limited at the above date Shares of Re.1 Shares of Rs.10 Shares of ARS 1 of PLN 500 each, Shares of £ 1 US$ 200 each, Shares of Rs.10
each, fully paid up each, fully paid up each, fully paid up fully paid up each, fully paid up fully paid up each, fully paid
up.
(b) Extent of interest of CRISIL in the capital of the 100% 100% 100% 100% 100% 100% 100%
subsidiary
annexed to and forming part of the Accounts

4. Net aggregate amount of the profits/ (losses) of the

subsidiary so far it concerns the members of CRISIL
as is not dealt with the Company’s Accounts :
(a) Profits / (losses) for the period ended December 50,254,003 (11,085) 5,232,195 2,039,590 (5,562,061) 748,498 2,878,489
31,2010 of the subsidiary (Rupees)
(b) Profits / (losses) for the previous financial year of 78,795,946 (13,962) 4,496,776 1,932,775 712,566 (7,966,442) -
the subsidiary, since it became the subsidiary of
CRISIL Limited (Rupees)
5. 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, 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

Rama Bijapurkar B. V. Bhargava H.N. Sinor Thomas Schiller
Director Director Director Director

Roopa Kudva Shrikant Dev

Managing Director & Chief Executive Officer Company Secretary
Mumbai, February 14, 2011
Ready for the next level.

83
 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, 1956
Balance Sheet abstract and Company’s General Business Profile

I. Registration Details
Registration No. 42363
State Code 11
Balance Sheet Date December 31, 2010

II. Capital Raised during the Year (Amount in Rs. Thousands)

Public Issue -
Rights Issue -
Bonus Issue -
Private Placement -
Preferential offer of shares under Employee Stock Option Scheme -

III. Position of Mobilisation and Deployment of Funds (Amount in [Link])

Total Liabilities 3,625,055
Total Assets 3,625,055

Source of Funds
Paid up Capital 70,968
Reserves & Surplus 3,554,087
Secured Loans -
Unsecured Loans -

Application of Funds
Net Fixed Assets 998,470

Capital Work-In-Progress (including Capital Advances) 830

Investments 1,175,058
Deferred Tax Asset 121,763
Net Current Assets 1,328,935
Miscellaneous Expenditure -
Accumulated Losses -

IV. Performance of Company (Amount in [Link])

Turnover 6,023,343
Total Expenditure 3,533,609
Profit/(Loss) Before Tax 2,489,735
Profit/(Loss) After Tax 1,957,546
Earnings Per Share (Rs.) 271.61
Dividend Rate% 2,000

V. Generic Names of Three principal Products/Services of Company

(as per monetary terms)
Production Description Item Code No.
Credit Rating Not Applicable
Research Services Not Applicable

For and on behalf of the Board of Directors of CRISIL Limited

Rama Bijapurkar B. V. Bhargava
Director Director

Roopa Kudva
Managing Director & Chief Executive Officer Thomas Schiller
Director

H.N. Sinor Shrikant Dev

Director Company Secretary

Mumbai, February 14, 2011

84
 Ready for the next level.

auditors’ report

The Board of Directors of

CRISIL Limited

1. We have audited the attached Consolidated Balance Sheet management has been used for consolidation and we have
of CRISIL Group (‘Group’), as at December 31, 2010, and relied upon the same.
also the Consolidated Profit and Loss account and the
5. We report that the consolidated financial statements have
Consolidated Cash Flow statement for the year ended on
been prepared by CRISIL’s management in accordance
that date annexed thereto. These financial statements are
with the requirements of Accounting Standards (AS) 21,
the responsibility of the CRISIL’s management and have
Consolidated financial statements and Accounting Standard
been prepared by the management on the basis of separate
(AS) 27, Financial Reporting of Interests in Joint Ventures,
financial statements and other financial information regarding
notified by Companies Accounting Standards Rules, 2006, as
components. Our responsibility is to express an opinion on
amended.
these financial statements based on our audit.

6. Based on our audit and on consideration of reports of other

2. We conducted our audit in accordance with the auditing
auditors on separate financial statements and on the other
standards generally accepted in India. Those Standards
financial information of the components and based on
require that we plan and perform the audit to obtain reasonable
unaudited financial statements for the year ended December
assurance about whether the financial statements are free of
31, 2010 of a joint venture company, and to the best of our
material misstatement. An audit includes examining, on a test
information and according to the explanations given to us,
basis, evidence supporting the amounts and disclosures in
we are of the opinion that the attached consolidated financial
the financial statements. An audit also includes assessing the
statements give a true and fair view in conformity with the
accounting principles used and significant estimates made
accounting principles generally accepted in India, read with
by management, as well as evaluating the overall financial
the matter stated in paragraph 4 above and Note 11 of the
statement presentation. We believe that our audit provides a
Consolidated Financial Statements of the Group:
reasonable basis for our opinion.

(i) in the case of the Consolidated Balance Sheet, of the

3. We did not audit the financial statements of six subsidiaries,
state of affairs of the Group as at December 31, 2010;
whose financial statements reflect total assets of
Rs. 2,481,508,212 as at December 31, 2010, total revenue (ii) in the case of the Consolidated Profit and Loss account,
of Rs. 1,947,959,235 and net cash inflow amounting to of the profit for the year ended on that date; and
Rs. 104,655,019 for the year then ended. These financial
statements and other financial information have been audited (iii) in the case of the Consolidated Cash Flow statement, of
by other auditors whose reports have been furnished to us, the cash flows for the year ended on that date.
and our opinion is based solely on the report of other auditors.

4. As stated in Note 11 of the Notes to the Consolidated Financial

Statements, the audited financial statements are not available
For S.R. BATLIBOI & Co.
in respect of one joint venture company, which represents
Firm registration number: 301003E
total assets of Rs. 169,426,889 as at December 31, 2010,
Chartered Accountants
total revenue of Rs. 84,512,567 and total cash inflow of
Rs. 48,926,972 for the year then ended. Consequently the per Shrawan Jalan
unaudited financial statements of one joint venture company Place: Mumbai Partner
for the year ended December 31, 2010 as certified by CRISIL’s Date: February 14, 2011 Membership No.: 102102

85
 Consolidated financial statements
Consolidated Balance Sheet Consolidated Profit and Loss Account

Consolidated balance sheet

as at December 31, 2010

(Rupees)
Particulars Schedule December December
31, 2010 31, 2009
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital A 70,968,440 72,250,000
Reserves and Surplus B 3,873,552,940 4,265,863,099
TOTAL 3,944,521,380 4,338,113,099
APPLICATION OF FUNDS
Fixed Assets C
Gross Block 3,098,908,198 1,843,681,824
Less: Accumulated Depreciation/Amortization 850,733,770 642,705,151
Net Block 2,248,174,428 1,200,976,673
Capital Work-In-Progress (including Capital Advances) 854,150 636,682,868
2,249,028,578 1,837,659,541
INVESTMENTS D 262,041,253 1,175,246,327
Deferred Tax Assets (Net) (Refer Note 5 - Schedule P) 142,329,182 100,747,726
Current Assets, Loans And Advances
Sundry Debtors E 1,085,900,744 922,088,397
Cash and Bank Balances F 1,613,102,807 1,575,661,514
Loans and Advances G 510,107,447 618,127,947
Other Current Assets H 221,294,902 110,875,931
3,430,405,900 3,226,753,789
Less: Current Liabilities And Provisions
Current Liabilities I 1,676,889,605 1,615,201,639
Provisions J 462,393,928 387,092,645
2,139,283,533 2,002,294,284
Net Current Assets 1,291,122,367 1,224,459,505
TOTAL 3,944,521,380 4,338,113,099
Significant Accounting Policies and Notes to the P
Accounts

The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.
As per our report of even date.
For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava
Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011

86
 Ready for the next level.

Consolidated profit and loss account

for the year ended December 31, 2010

(Rupees)
Particulars Schedule Year Ended Year Ended
December December
31, 2010 31, 2009
INCOME
Income from Operations K 6,284,427,569 5,372,723,640
Other Income L 730,314,730 230,046,844
TOTAL 7,014,742,299 5,602,770,484
EXPENDITURE
Personnel Expenses M 2,581,730,350 2,078,587,258
Establishment Expenses N 712,685,671 549,060,912
Other Expenses O 838,879,245 752,007,960
Depreciation 212,581,735 148,515,395
TOTAL 4,345,877,001 3,528,171,525
Profit before Tax 2,668,865,298 2,074,598,959
Tax Expense
Current Tax 628,506,315 484,466,659
Fringe Benefit Tax - 3,856,288
Wealth Tax 692,020 772,850
Deferred Tax (42,355,766) (22,273,438)
Income Tax of earlier years (88,469) -
586,754,100 466,822,359
Profit After Tax and before prior period items 2,082,111,198 1,607,776,600
Prior period expense, net of tax (Refer Note 16 - 27,444,953 -
Schedule P)
Profit After Tax 2,054,666,245 1,607,776,600
Balance brought forward from previous year 2,496,718,603 1,885,109,355
Amount Available for Appropriation 4,551,384,848 3,492,885,955
Dividend
Interim 1,264,375,000 541,875,000
Proposed Final Dividend 177,421,100 180,625,000
Total 1,441,796,100 722,500,000
Dividend Tax on Interim and Proposed final dividend 239,524,456 123,330,166
Transfer to General Reserve 195,754,482 150,337,186
Balance carried to Balance Sheet 2,674,309,810 2,496,718,603
4,551,384,848 3,492,885,955
Basic and Diluted Earnings Per Share - Nominal value 285.09 222.53
of Rs.10 (Refer Note 14 - Schedule P)
Number of Shares used in Computing Earnings Per 7,207,093 7,225,000
Share* (Refer Note 14 - Schedule P)
Significant Accounting Policies and Notes to the P
Accounts

*Weighted Average
The schedules referred to above and notes to accounts form an integral part of the Profit & Loss Account.
As per our report of even date.
For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava
Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer
Shrikant Dev
Company Secretary
Mumbai, February 14, 2011
87
 Consolidated financial statements
Consolidated Cash Flow Statement

Consolidated Cash flow Statement

for the year ended December 31, 2010

(Rupees)
Year Ended Year Ended
Particulars December December
31, 2010 31, 2009
A. Cash Flow from Operating Activities:
Profit before tax 2,668,865,298 2,074,598,959
Adjustments for : -
Depreciation 212,581,735 148,515,395
Provision for leave encashment 30,646,383 29,983,152
Provision for gratuity (Refer Note 16- Schedule P) 28,191,311 (12,758,357)
Foreign Currency Translation Reserve 4,372,399 1,448,303
Unrealised Foreign exchange loss 5,526,836 6,220,663
(Profit)/ Loss on sale of fixed assets (251,327,478) 6,411,942
(Profit) on sale of investments (345,799,613) (96,467,976)
Provision for bad debts 82,427,271 70,559,890
Interest on deposits (81,215,474) (106,525,306)
Dividend income from Other investments (2,144,742) (747,500)
Dividend Income from long term investments (23,732,040) (4,062,840)
Operating profit before working capital changes 2,328,391,886 2,117,176,325
Movements in working capital
- (Increase)/decrease in sundry debtors (280,443,311) (227,394,475)
- (Increase)/decrease in sundry deposits 91,934,018 (125,616,543)
- (Increase)/decrease in loans 1,747,186 (3,285,268)
- (Increase)/decrease in advances 33,321,256 (3,586,301)
- (Increase)/decrease in accrued income (24,901,609) (38,102,615)
- Increase/(decrease) in sundry creditors (93,152,744) 299,726,187
- Increase/(decrease) in fee received in advance 75,268,820 101,887,109
- Increase/(decrease) in other liabilities (22,310,037) 55,682,025
Cash generated from operations 2,109,855,465 2,176,486,444
- Taxes paid (650,368,698) (434,550,103)
Net cash generated from operating activities - (A) 1,459,486,767 1,741,936,341
B. Cash flow from investing activities :
Purchase of fixed assets (Refer Note 15- Schedule P) (498,538,005) (759,533,751)
Proceeds from sale of fixed assets 323,722,834 7,077,090
Investments in mutual funds (205,791,252) (804,062,841)
Investment in National Commodity and Derivative Exchange (99,000,000) -
Limited
Sale proceeds from Investment in National Commodity and 374,433,189 -
Derivative Exchange Limited
Sale proceeds from investments in Gas Strategies Group 58,728,000 -
Limited
Sale proceeds from investments in mutual funds 1,130,634,750 909,654,517
Contd...

88
 Ready for the next level.

Consolidated Cash flow Statement

for the year ended December 31, 2010

(Rupees)
Year Ended Year Ended
Particulars December December
31, 2010 31, 2009
Payment made for acquisition of Pipal Research Analytics (111,292,051) -
and Information Services India Private Limited
Investment in fixed deposits (975,058,928) (424,205,928)
Proceeds from fixed deposit maturity/renewal 623,410,714 610,913,750
Interest on deposits 54,447,812 112,183,371
Dividend Income from long term investments 23,732,040 747,500
Dividend income from current investments 2,144,742 4,062,840
Net cash generated from/(used in) investing activities - (B) 701,573,845 (343,163,452)
C. Cash flow from financing activities :
Buy Back of Shares (796,858,024) -
Dividend and dividend tax paid (1,680,735,331) (928,522,327)
Net cash generated from/(used in) financing activities - (C) (2,477,593,355) (928,522,327)
Net Increase/(decrease) in cash and cash equivalents (316,532,743) 470,250,562
(A+B+C)
Add : Adjustment towards acquisition 2,275,822 -
Net Increase/(decrease) in cash and cash equivalents after (314,256,921) 470,250,562
divesture adjustment
Cash and cash equivalents - Opening balance 909,593,014 439,342,452
Cash and cash equivalents - Closing balance 595,336,093 909,593,014
Net Increase/(decrease) in Cash and Cash Equivalents (314,256,921) 470,250,562
Components of cash and cash equivalents as at*
Cash on hand 175,126 91,584
With banks on current account 595,160,967 909,501,430
595,336,093 909,593,014
*Cash and cash equivalent includes earmarked unpaid dividend amount (Refer Schedule F)
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.

As per our report of even date.

For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava
Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011

89
 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 December
31, 2010 31, 2009
Schedule A:
Share Capital
Authorised Capital:
10,000,000 (P.Y. 10,000,000) Equity Shares of Rs.10 each 100,000,000 100,000,000
Issued, Subscribed and Paid Up:
7,096,844 (P.Y. 7,225,000) Equity Shares of Rs. 10 each fully paid up 70,968,440 72,250,000
[Of the above, 600,000 (P.Y. 600,000) Equity Shares are held by
Standard & Poor’s International LLC, USA and 3,120,948 (P.Y.
3,120,948) Equity Shares are held by S&P India, LLC (a wholly
owned subsidiary of The McGraw-Hill Companies, Inc.- The
Ultimate Holding Company)]
(Refer Note 14, Schedule P)
Total 70,968,440 72,250,000

Schedule B:
Reserves & Surplus
Securities Premium Account
Opening Balance 474,890,071 474,890,071
Less:- Used towards buy back of equity shares (Refer Note 14, (474,890,071)
Schedule P)
Total (A) - 474,890,071
Capital Reserve (B) 122,232,111 122,232,111
Capital Redemption Reserve
Opening Balance - -
Add:- Transfer on account of buy back of equity shares (Refer Note 1,281,560 -
14, Schedule P)
Total (C) 1,281,560 -
Profit and Loss Account (D) 2,674,309,810 2,496,718,603
General Reserve as per last Balance Sheet
Opening Balance 1,178,781,699 1,028,444,513
Add : Transfer from Profit and Loss Account 195,754,482 150,337,186
Less :Transfer to Capital Redemption Reserve account (Refer Note (1,281,560) -
14, Schedule P)
Less :Used towards buy back of equity shares (Refer Note 14, (320,686,393) -
Schedule P)
Total (E) 1,052,568,228 1,178,781,699
Foreign Currency Translation Reserve as per last Balance Sheet (6,759,385) (7,798,081)
(Add)/Less : Movement during the year (4,372,399) 1,038,696
Total (F) (2,386,986) (6,759,385)
Hedging Reserve Account (G) 25,548,217 -
TOTAL (A+B+C+D+E+F+G) 3,873,552,940 4,265,863,099

90
 Schedule C:
Fixed Assets
(Rupees)
Gross Block at Cost Accumulated Depreciation/Amortization Net Block
As on January Additions Deductions Adjustments As on Upto January For the year On Assets Adjustments Upto As on As on
1, 2010 December 1, 2010 sold December December December
31, 2010 31, 2010 31, 2010 31, 2009
Schedules

Intangibles
Goodwill On 691,968,593 133,257,298 - - 825,225,891 - - - - - 825,225,891 691,968,593
Consolidation
Customer Relationship - 202,507,074 - - 202,507,074 - 1,160,859 - - 1,160,859 201,346,215 -
Brand - 25,563,445 - - 25,563,445 - 203,107 - - 203,107 25,360,338 -
Non Compete - 32,525,773 - - 32,525,773 - 861,413 - - 861,413 31,664,360 -
Goodwill - 124,499,661 - - 124,499,661 - 494,587 - - 494,587 124,005,074 -
Fixed Assets
Buildings ( Refer note 185,676,832 - 24,111,354 - 161,565,478 89,405,254 9,283,842 8,938,266 - 89,750,830 71,814,648 96,271,578
below)
Furniture and Fixtures 140,183,775 78,792,655 16,505,462 5,187,123 207,658,091 70,436,056 18,791,691 8,912,479 2,567,824 82,883,092 124,774,999 69,747,719
(Refer note below)
Office Equipments 173,291,134 135,155,846 2,796,250 10,587,158 316,237,888 71,314,827 28,901,850 1,421,576 4,779,086 103,574,187 212,663,701 101,976,307
(Refer note below)
Computers 441,787,911 101,641,233 614,762 25,180,448 567,994,830 344,751,897 76,605,399 436,402 22,749,859 443,670,753 124,324,077 97,036,014
annexed to and forming part of the Consolidated Accounts

Vehicles 50,823,298 16,661,032 21,204,527 - 46,279,803 36,743,777 10,756,089 18,280,943 - 29,218,923 17,060,880 14,079,521
Leasehold 159,950,281 417,020,004 - 11,879,979 588,850,264 30,053,340 65,522,898 - 3,339,781 98,916,019 489,934,245 129,896,941
Improvements
Total 1,843,681,824 1,267,624,021 65,232,355 52,834,708 3,098,908,198 642,705,151 212,581,735 37,989,666 33,436,550 850,733,770 2,248,174,428 1,200,976,673
Previous Year 1,820,873,185 163,222,956 140,414,317 - 1,843,681,824 559,849,234 148,515,395 65,659,478 - 642,705,151 1,200,976,673

Note
1. Adjustment with respect to building, 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.61,265,807). Refer Schedule H.
2. 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, Schedule P)
3. Additions in Intangible Assets is with respect to acquisition of business assets from Pipal Research Corporation, US.
Ready for the next level.

91
 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 December December December
31, 2010 31, 2010 31, 2009 31, 2009
Schedule D:
Investments
A. Long Term (Unquoted - At Cost )
1,875,000 (P.Y.3,600,000) Equity Shares of 56,250,000 36,000,000
National Commodity and Derivative Exchange
Limited of Rs.10 each, fully paid up
(Purchased 900,000 shares during the year
and Sold 2,625,000 shares during the year)
300,000 (P.Y. 300,000) Equity Shares of 13,642,500 13,642,500
Caribbean Information and Credit Rating
Agency of US $ 1 each, fully paid up
Less: Provision for diminution in value of (13,642,499) 1 (13,642,499) 1
Investment
Nil (P.Y. 40,000) Equity Shares of Gas - 25,647,990
Strategies Group Limited of £1 each,fully
paid up. Sold 40,000 Equity Shares during
the year
Total Long Term (At Cost) - {A} 56,250,001 61,647,991
B. Current Investments (At Cost Or Market
Value, whichever is lower) *
Investments In Mutual Funds (Unquoted)
Nil Units (P.Y.5,474,352 Units) of Rs.10 each - 95,897,998
of Sundaram BNP Paribas Money Fund -
Institutional Plan
(Sold 5,474,352 Units during the current year )
Nil Units (P.Y. 62,578 Units) of Rs.10 - 100,000,000
each of Tata Liquid Super High Inv. Fund -
Appreciation
(Sold 62,578 Units during the current year)
Nil Units (P.Y1,51,08,936 Units ) of Rs.10 - 151,099,933
each of Principal Cash Management Fund-
Liquid Option Institutional Premium Plan -
Dividend Reinvestment
(Sold 1,51,08,936 Units during the current year )
Nil Units (P.Y.1,48,269 Units) of Rs.10 - 151,151,946
each of UTI Liquid Cash Plan Institutional -
Dividend reinvestment
(Sold 1,48,269 Units during the current year)
Nil Units (P.Y 35,10,065 Units) of Rs.10 -
each of ICICI Prudential Institutional Liquid 351,083,706
Plan - Dividend Reinvestment
(Sold 35,10,065 Units during the current year)
Nil Units (P.Y 12,294,430 Units)of Rs.10 - 150,727,255
each HDFC Liquid Fund Premium Plan -
Dividend Reinvestment

92
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

(Rupees)
December December December December
31, 2010 31, 2010 31, 2009 31, 2009
Schedule D: (Contd)
Investments
(Sold 12,294,430 Units during the current year)
Investments In Mutual Funds (Quoted) 100,000,000
10,00,000 Units of Rs 10 each ICICI -
Prudential FMP Series 53 - 1 Year Plan D
cumulative.
(Purchased 10,00,000 Units during the
current year)
Total Investments in Mutual Funds {B}* 100,000,000 999,960,838
Proportional Share of Investments in Mutual 105,791,252 113,637,498
Fund by Joint Venture Company {C}
(Unquoted -At Cost Or Market Value,
whichever is lower) *
Total Investments {A}+{B}+{C} 262,041,253 1,175,246,327
*Aggregate market value of Company’s 206,208,363 1,123,994,558
investment in Mutual Funds

(Rupees)
December December
31, 2010 31, 2009
Schedule E:
Sundry Debtors
Debts outstanding for a period exceeding six months
- Considered good 69,673,389 103,845,678
- Considered doubtful 84,946,679 46,801,844
Other debts
- Considered good 1,016,227,355 854,354,649
- Considered doubtful - -
Less : Reserve for Doubtful Debts (84,946,679) (82,913,774)
1,085,900,744 922,088,397
Amount receivable from following Companies under same
management
Standard & Poor’s LLC 112,518,352 85,049,309
Standard & Poor’s South Asia Services Private Limited 3,508,663 9,791,805
The McGraw-Hill Companies, Inc - 9,851
McGraw-Hill Education India Private Limited 345,602 -
116,372,617 94,850,965

93
 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 December
31, 2010 31, 2009
Schedule F:
Cash & Bank Balances
Cash on Hand 175,126 91,584
Balances with Scheduled Banks
On Current Accounts 587,166,646 905,768,216
On Deposit Accounts 1,017,766,714 666,068,500
On Unpaid Dividend Accounts 7,994,321 3,733,214
Deposit includes Fixed Deposits with Banks Rs.63,093,157
([Link].38,464,490) marked as lien for Guarantees issued by
Banks on behalf of the Company.
1,613,102,807 1,575,661,514

Schedule G:
Loans and Advances
(Unsecured, Considered Good)
Loans to Staff 22,473,838 24,437,194
Advance Recoverable In Cash or kind for value to be received 64,547,157 95,746,746
Advance Taxes paid 27,114,310 18,334,207
Sundry Deposits 395,972,142 479,609,800
510,107,447 618,127,947

Schedule H :
Other Current Assets
Interest Accrued On Fixed Deposit With Banks 33,833,088 7,065,426
Accrued Revenue 67,455,537 42,544,698
Forward Contract Receivable 25,548,217 -
Assets held for sale (Refer Note 1 on Schedule C) 16,113,140 61,265,807
Grant Receivable (Refer Note 17 - Schedule P) 78,344,920 -
221,294,902 110,875,931

Schedule I:
Current Liabilities
Sundry Creditors 780,020,531 855,973,161
Fees received in advance 663,507,639 588,238,819
Unclaimed dividend (to be credited to Investor Education & 7,994,321 3,733,214
Protection Fund, when due)
Other Liabilities 147,022,194 167,256,445
Deferred Grant Revenue (Refer Note 17 - Schedule P) 78,344,920 -
1,676,889,605 1,615,201,639

Schedule J :
Provisions
Proposed Dividend 177,421,100 180,625,000
Corporate Dividend Tax thereon 29,467,427 31,106,826
Provision for Tax 1,605,822 14,303,245
Provision for Leave Encashment 186,498,605 152,615,026
Provision for Gratuity (Refer Note 16 - Schedule P) 67,400,974 8,442,548
462,393,928 387,092,645

94
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

(Rupees)
December December
31, 2010 31, 2009
Schedule K :
Income From Operations
Ratings Services 2,840,877,156 2,389,016,014
Advisory Services 515,648,079 599,097,502
Research Services 2,848,807,782 2,323,424,858
Proportionate share in Joint Venture 79,094,552 61,185,266
6,284,427,569 5,372,723,640

Schedule L :
Other Income
Interest on Deposits [TDS Rs.6,211,530) (P.Y Rs.19,117,864)] 75,060,339 106,525,306
Profit on sale of Fixed Assets (Net) 251,327,478 -
Dividend Income - Other Investments 2,144,742 747,500
Profit from sale of Investments (Net) 345,799,613 96,467,976
Dividend income from Current Investments 23,732,040 4,062,840
Miscellaneous Income 26,095,383 17,215,218
Proportionate share in interest income of Joint Venture 6,155,135 5,028,004
730,314,730 230,046,844

Schedule M :
Personnel Expenses
Salaries & Bonus 2,355,811,588 1,932,030,018
Contribution to :Provident Fund 87,719,755 58,942,407
Other Funds (Refer Note 16 - Schedule P) 34,206,861 19,422,510
Staff Training and Welfare Expenses 103,992,146 68,192,323
2,581,730,350 2,078,587,258

Schedule N :
Establishment Expenses
Repairs and Maintenance - Buildings 68,903,656 69,343,582
Repairs and Maintenance - Others 77,282,991 61,307,113
Electricity 58,237,200 54,298,400
Communication expenses 66,520,368 69,735,265
Insurance 3,737,318 4,280,215
Rent (Refer Note 9 - Schedule P) 435,747,372 287,569,871
Rates & Taxes 2,256,766 2,526,466
712,685,671 549,060,912

95
 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 December
31, 2010 31, 2009
Schedule O :
Other Expenses
Printing and Stationery 29,576,217 26,540,488
Conveyance and Travelling 214,198,404 165,560,909
Books and Periodicals 28,334,419 21,849,510
Vehicle Expenses 1,419,838 1,042,450
Remuneration to Non-whole time Directors 13,395,770 9,872,369
Business Promotion and Advertisement 23,110,630 16,412,915
Foreign Exchange loss(net) 37,471,017 23,203,928
Professional Fees 335,917,111 334,937,423
Software Purchase & Maintenance Expenses 22,612,779 30,217,846
Provision for Bad Debts 82,427,271 70,559,890
Loss on sale of fixed assets - 7,877,953
Auditors’ Remuneration 5,066,421 5,230,049
Recruitment Expenses 20,641,342 10,431,132
Seminars & Conferences 1,612,936 1,591,220
Miscellaneous Expenses 11,295,356 17,236,049
Proportionate share in administrative and other expense of Joint 11,799,734 9,443,829
Venture
838,879,245 752,007,960

Schedule P: 2.2 The financial statements of the Group

and its’ subsidiaries have been combined
Significant Accounting Policies and notes to
on a line by line basis by adding together
the Consolidated Accounts the book values of like items of assets,
1. Nature of Operations liabilities, income and expenses, after
duly eliminating intra group balances and
CRISIL is a globally-diversified analytical
intra group transactions and resulting
company providing ratings, research, and risk
gains/ losses as per Accounting
and policy advisory services. CRISIL is India’s
Standard 21 - Consolidated Financial
leading ratings agency and the foremost
Statements notified by Companies
provider of high-end research to the world’s
Accounting Standards Rules, 2006 as
largest banks and leading corporations. With
amended and the relevant provisions of
sustainable competitive advantage arising
the Companies Act, 1956 (‘the Act’).
from strong brand, unmatched credibility,
market leadership across businesses, and 2.3 The consolidated financial statements
large customer base, CRISIL deliver analysis, are prepared by applying uniform
opinions, and solutions that make markets accounting policies in use at the group.
function better.
2.4 Interests in joint venture have been
2. Principles of consolidation accounted by using the proportionate
consolidation method as per Accounting
2.1 The consolidated financial statements
Standard 27 - Financial Reporting of
include the financial statements of
Interests in Joint Ventures notified by
CRISIL Limited consolidated with the
Companies Accounting Standards
financial statements of its wholly owned
Rules, 2006 as amended.
subsidiaries and joint venture (“Group”).

96
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

2.5 The excess of Group’s purchase 2.6 The list of subsidiary companies and
consideration over the net assets as joint venture and the Holding Company
at the date of investment, has been viz. CRISIL’s holding directly or through
recognised as Goodwill on consolidation. Subsidiaries therein are as under :

Name of the company Country of Ownership in % either directly or

Incorporation through Subsidiaries
31-Dec-10 31-Dec-09
CRISIL Risk and Infrastructure Solutions Limited India 100% 100%
CRISIL Credit Information Services Limited India 100% 100%
Irevna Limited, UK United 100% 100%
Kingdom
Irevna LLC, US United States 100% 100%
India Index Services and Products Limited India 49% 49%
(Joint Venture)
CRISIL Irevna Argentina S.A. Argentina 100% 100%
CRISIL Irevna Poland Sp.z.o.o. Poland 100% 100%
Pipal Research Analytics and Information Services India 100% -
India Private Limited
CRISIL Irevna Information Technology China 100% -
(Hangzhow) Co., Ltd*

*Company incorporated but yet to commence business operations.

3. Basis of Preparation accounting principles requires

The Consolidated Financial Statements management to make estimates and
(‘CFS’) are prepared in accordance assumptions that affect the reported
with Accounting Standard (‘AS’) 21 amounts of assets and liabilities and
“Consolidated Financial Statements”, disclosure of contingent liabilities at the
AS-25 “Interim Financial Reporting” and date of the financial statements and the
AS- 27 “Financial Reporting of Interests results of operations during the reporting
in Joint Ventures” issued by the Institute year end. Although these estimates
of Chartered Accountants of India (ICAI). are based upon management’s best
The financial statements have been prepared knowledge of current events and
to comply in all material respects with the actions, actual results could differ from
Notified accounting standard by Companies these estimates.
Accounting Standards Rules, 2006 as
3.2 Fixed Assets
amended and the relevant provisions of the
Fixed assets are stated at cost,
Companies Act, 1956 (‘the Act’). The financial
less accumulated depreciation and
statements have been prepared under the
impairment losses if any. Cost comprises
historical cost convention on an accrual
the purchase price and any attributable
basis. The accounting policies have been
cost of bringing the asset to its working
consistently applied by the Group.
condition for its intended use. Items of
3.1 Use of Estimates fixed asset held for disposal are stated
The preparation of financial statements at lower of the net book value and net
in conformity with generally accepted realisable value and are shown under
other current assets.
97
 Consolidated financial statements
Schedules annexed to and forming part of the Consolidated Accounts

Schedules
annexed to and forming part of the Consolidated Accounts

3.3 Depreciation
Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated
by the management, details of which are as under :
Assets Estimated Useful Life
Buildings 20 Years
Furniture & Fixtures 4 to 16 Years
Office Equipments 4 to 10 Years
Computers 3 to 5 Years
Vehicles 3 Years

Leasehold Improvements are amortized over the lease term or useful life of the asset, whichever is
less. Leasehold improvements are amortized over the period of 3 years to 9 years in the current year.

3.4 Impairment assessing value in use, the estimated future

The carrying amounts of assets are reviewed cash flows are discounted to the present
at each balance sheet date if there is any value at interest rate specific to the asset and
indication of impairment based on internal/ in case where the specific rate is not available
external factors. An impairment loss is at the weighted average cost of capital which
recognized wherever the carrying amount of is adjusted for country risk/currency risk.
an asset exceeds its recoverable amount. After impairment, depreciation is provided on
The recoverable amount is the greater of the the revised carrying amount of the asset over
asset’s net selling price and value in use. In its remaining useful life.
3.5 Intangibles
Goodwill is amortized on a systematic basis over the best estimate of it’s useful life. Details of
estimated useful life of intangible assets are as under :
Assets Estimated Useful Life
Goodwill 10 Years
Customer relationship 3 to 10 Years
Brand 10 Years
Non compete 3 Years

3.6 Operating Leases provision for diminution in value is made to

Leases where the lessor effectively retains recognise a decline other than temporary in
substantially all the risks and benefits of the value of the investments.
ownership of the leased item, are classified as
3.8 Revenue Recognition
operating leases. Operating lease payments
are recognized as an expense in the Profit Revenue is recognized to the extent that it is
and Loss account on a straight-line basis over probable that the economic benefits will flow
the lease term. to the Group and the revenue can be reliably
measured.
3.7 Investments
Income from Operations
Investments that are readily realisable and
Income from Operations comprises of
intended to be held for not more than a year
income from initial rating and surveillance
are classified as current investments. All
services, global analytical services, credit
other investments are classified as long-term
assessments, special assignments and
investments. Current investments are carried
subscriptions to information products. Initial
at lower of cost and fair value determined on
rating fees are deemed to accrue at 94%
an individual investment basis. Long-term
on the date the rating is awarded and the
investments are carried at cost. However,
98
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

balance 6% is recorded equally over 11 3.9 Retirement and other employee benefits
months subsequent to the month in which Retirement benefits in the form of Provident
the rating was awarded. Surveillance fee Fund is a defined contribution scheme and
and subscription to information products are the contributions are charged to the Profit
accounted on a time proportion basis. Fees and Loss Account of the year when the
received for credit assessments and special contributions to the respective funds are due.
assignments are fully recognised as income There are no other obligations other than
in the year in which such assessments/ the contribution payable to the respective
assignments are carried out or milestones authorities or trusts.
achieved or as per agreement with client.
Gratuity liability is provided for on the basis of
Revenue from infrastructure advisory services
an actuarial valuation on projected unit credit
are recognized as income in the year in which
method made at the end of each financial
such assessments/assignments are carried
year.
out or milestones achieved. Revenue from
risk management services comprises of Short term compensated absences are
revenue from sale of software and annual provided for based on estimates. Long term
maintenance of software. compensated absences are provided for
Grants and subsidies are recognized at fair based on actuarial valuation. The actuarial
value where there is reasonable assurance valuation is done as per projected unit credit
that the grant/subsidy will be received and method.
all attaching conditions will be complied Actuarial gains/losses are immediately
with. When the grant or subsidy relates to an taken to profit and loss account and are not
expense item, it is deferred in the balance deferred.
sheet and recognized as income over the
In respect of foreign subsidiaries retirement
periods necessary to match it on a systematic
benefits are governed and accrued as per
basis with the costs which it is intended to
local statutes.
compensate

Interest Income 3.10 Foreign Currency Transactions

Revenue is recognised on a time proportion Initial Recognition

basis taking into account the amount Foreign currency transactions are recorded
outstanding and the rate applicable. in reporting currency by applying to the foreign
currency amounts the average exchange
Dividend Income
rates for the month in which the transaction
Revenue is recognised when the shareholders’
takes place.
right to receive payment is established by the
balance sheet date. Dividend from subsidiaries Conversion
is recognised even if same are declared after Foreign currency monetary items are reported
the balance sheet date but pertains to period using the closing rates. Non monetary items
on or before the date of balance sheet as per which are carried in terms of historical costs
the requirement of schedule VI of the Act. denominated in a foreign currency are

Profit /(loss) on sale of investment reported using the exchange rate at the date
of transaction.
Profit /(loss) on sale of investment is
accounted when the sale / transfer deed is Exchange Difference
executed . On disposal of such investments, Exchange differences, arising on settlement
the difference between the carrying amount of monetary items or on reporting Company’s
and the disposal proceeds, net of expenses, is monetary items at rates different from those
recognised in the profit and loss account . The at which they were initially recorded during
carrying amount of investment is determined the year, or reported in previous financial
using weighted average cost method.
99
 Consolidated financial statements
Schedules annexed to and forming part of the Consolidated Accounts

Schedules
annexed to and forming part of the Consolidated Accounts

statements, are recognised as income or as Reserve Account included in the Reserves

expense in the year in which they arise. and Surplus. This gain / loss would be
recorded in the profit and loss account when
Forward Contract
the underlying transactions affect earnings.
Forward contracts are entered into, to hedge
Other derivative instruments that relate to a
the foreign currency risk of the underlying
firm commitment or a highly probable forecast
outstanding at the balance sheet date and
transaction and that do not qualify for hedge
also to hedge the foreign currency risk of
accounting, have been recorded at fair value
firm commitment or highly probable forecast
at the reporting date and the resultant gain /
transactions. The premium or discount on
loss has been credited / debited to profit and
forward contracts that are entered into,
loss account for the year.
to hedge the foreign currency risk of the
underlying outstanding at the balance sheet 3.11 Translation of Integral and Non Integral
date arising at the inception of each contract, foreign operation
is amortised as income or expense over the The financial statements of an integral foreign
life of the contract. Any profit or loss arising operation are translated as if the transactions
on the cancellation or renewal of forward of the foreign operation have been those of
contracts is recognised as income or as the company itself.
expense for the year.
In translating the financial statements of a non-
In relation to the forward contracts entered integral foreign operation for incorporation in
into, to hedge the foreign currency risk of the financial statements, the assets and liabilities,
underlying outstanding at the balance sheet both monetary and non-monetary, of the non-
date, the exchange difference is calculated integral foreign operation are translated at the
as the difference between the foreign closing rate; income and expense items of the
currency amount of the contract translated non integral foreign operation are translated
at the exchange rate at the reporting date at average exchange rates and resulting
or the settlement date where the transaction exchange differences are accumulated in a
is settled during the reporting year, and the foreign currency translation reserve until the
corresponding foreign currency amount disposal of the net investment. On disposal of
translated at the later of the date of inception the net investment, this amount is transferred
of the forward exchange contract and the last to profit and loss account.
reporting date. Such exchange differences
are recognised in the profit and loss account 3.12 Taxes On Income
in the reporting year in which the exchange Tax expense comprises of current, deferred,
rates change. and fringe benefit tax. Current income tax and
The Company has adopted the principles of fringe benefit tax is measured at the amount
AS 30 “Financial Instruments: Recognition expected to be paid to the tax authorities
and Measurement” in respect of its derivative Deferred income taxes reflects the impact
financial instruments that are not covered by of current year timing differences between
AS 11 “Accounting for the Effects of Changes taxable income and accounting income for
in Foreign Exchange Rates” and that relate the year and reversal of timing differences
to a firm commitment or a highly probable of earlier years. With respect to foreign
forecast transaction. In accordance with AS subsidiaries tax expense is recorded and
30, such derivative financial instruments, recognised as per local statute.
which qualify for cash flow hedge accounting Deferred tax is measured based on the tax
and where the Company has met all the rates and the tax laws enacted or substantively
conditions of AS 30, are fair valued at the enacted at the balance sheet date. Deferred
balance sheet date and the resultant gain tax assets and deferred tax liabilities are offset,
/ loss is credited / debited to the Hedging if a legally enforceable right exists to set off

100
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

current tax assets against current tax liabilities analysis of geographical segments is based
and the deferred tax assets and deferred tax on the geographical locations of customers
liabilities relate to the taxes on income levied
Inter segment transfers:
by same governing taxation laws. Deferred tax
The Group generally accounts for
assets are recognised only to the extent that
intersegment services and transfers as if the
there is reasonable certainty that sufficient
services or transfers were to third parties at
future taxable income will be available against
current market prices.
which such deferred tax assets can be
Allocation of common costs:
realised. In situations where the company has
Common allocable costs are allocated to each
unabsorbed depreciation or carry forward tax
segment according to the relative contribution
losses, all deferred tax assets are recognised
of each segment to the total common costs
only if there is virtual certainty supported by
convincing evidence that they can be realised Unallocable items:

against future taxable profits. Unallocable income and expenses includes

general corporate income and expense items
At each balance sheet date, the Company re-
which are not allocated to any business
assesses unrecognised deferred tax assets. It
segment.
recognises unrecognised deferred tax assets
to the extent that it has become reasonably 3.14 Earnings Per Share
certain that sufficient future taxable income Basic earnings per share are calculated by
will be available against which such deferred dividing the net profit or loss for the period
tax assets can be realised. attributable to equity shareholders by the
The carrying amount of Deferred Tax Assets weighted average number of equity shares
are reviewed at each Balance Sheet date. outstanding during the period.
The Company writes down the carrying For the purpose of calculating diluted earnings
amount of a Deferred Tax Asset to the extent per share, the net profit or loss for the period
it is no longer reasonably or virtually certain, attributable to equity shareholders and the
as the case may be, that sufficient future weighted average number of shares outstanding
taxable income will be available against which during the period are adjusted for the effects of
Deferred Tax Asset can be realised. Any such all dilutive potential equity shares.
write down is reversed to the extent that it
3.15 Provisions
becomes reasonably or virtually certain, as
A provision is recognised when an enterprise
the case may be, that sufficient future taxable
has a present obligation as a result of past
income will be available.
event; it is probable that an outflow of resources
3.13 Segment Reporting Policies will be required to settle the obligation, in

Segment Policies: respect of which a reliable estimate can be

made. Provisions are not discounted to its
The Group prepares its segment information
present value and are determined based on
in conformity with the accounting policies
best estimate required to settle the obligation
adopted for preparing and presenting the
at the balance sheet date. These are reviewed
financial statements of the Group as a whole
at each balance sheet date and adjusted to
Identification of segments: reflect the current best estimates.
The Group’s operating businesses are
organized and managed separately according 3.16 Cash and Cash Equivalents

to the nature of products and services Cash and cash equivalents in the balance
provided, with each segment representing sheet comprise cash at bank and in hand
a strategic business unit that offers different and short-term investments with an original
products and serves different markets. The maturity of three months or less.

101
 Consolidated financial statements
Schedules annexed to and forming part of the Consolidated Accounts

Schedules
annexed to and forming part of the Consolidated Accounts

4. Details of Contingent Liabilities and Capital Commitments are as under :

(Rupees)
Year Ended Year Ended
Dec 31,2010 Dec 31,2009
1. Bank Guarantee in the normal course of business 63,093,157 38,464,890
2. Disputed Income Tax & Sales Tax Demand:
(i) Pending before Appellate authorities in respect of 45,988,082 30,166,544
which the Group is in appeal
(ii) Decided in Group’s favour by Appellate authorities 22,513,543 18,212,021
and Department is in further appeal
3. Estimated amount of contracts (net of advances) remaining 17,797,299 89,025,159
to be executed on capital account and not provided for
149,392,081 175,868,614

5. Components of Deferred Tax Asset and Liability are:

(Rupees)
As on As on
Dec 31,2010 Dec 31,2009
Deferred Tax Liability
Depreciation / Amortisation (68,554,281) (29,689,226)
Tax attributable towards tax holiday deduction (6,514,265) -
Disallowance under section 40(a) (424,278) (1,522,583)
(75,492,824) (31,211,809)
Deferred Tax Asset
Provision for Leave Encashment 60,644,153 48,085,409
Provision for Gratuity 16,460,385 2,406,012
Provision for Bonus and Commission 73,314,470 32,231,187
Provision for bad debts 19,802,282 18,365,419
Deferment of Rating fees 8,826,779 8,756,658
Lease Rent amortisation 33,326,234 19,310,095
Depreciation / Amortisation 2,265,475 1,958,747
Long term capital loss - 47,106
Disallowance under section 40(a) 3,182,228 798,902
217,822,006 131,959,535
Net Deferred Tax Asset / (Liability) 142,329,182 100,747,726

6. Segment Reporting rating field, credit analysis services, grading

Business Segments: services and global analytical services.
- Research segments provides high end
The Group has three major business
equity & corporate research, industry
segment: Ratings, Research and Advisory.
reports, customised research assignments,
A description of the types of products and
subscription to data services and IPO
services provided by each reportable segment
gradings.
is as follows:
-The Advisory segment comprise of
- Rating services includes credit ratings
infrastructure advisory and risk management
for corporates, banks, small and medium
practice.
enterprises (SME), training in the credit

102
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

Segment Reporting for the Year ended December 31, 2010

(Rupees)
Particulars Business segments
Total
Ratings Advisory Research
Operating Revenue 2,840,877,156 515,648,079 2,927,902,334 6,284,427,569
Segment Results 1,183,754,363 79,806,771 936,747,171 2,200,308,305
Add / (Less) Unallocables:
1. Unallocable Income
Interest Income 75,060,339
Profit on sale of Fixed Asset 251,327,478
Profit on sale of investments 345,799,613
Others 58,127,297
2. Unallocable Expenditure (49,175,999)
3. Depreciation (212,581,735)
Profit Before Tax 2,668,865,298
Tax Expense (586,754,100)
Profit After Tax and before 2,082,111,198
prior period items
Prior period expense, net of tax (27,444,953)
Profit After Tax 2,054,666,245
Non-cash expenses other than 88,823,285 34,929,283 44,119,608 167,872,176
depreciation and amortisation
Segment Assets* :
Segment Debtors 360,109,568 215,557,446 595,180,409 1,170,847,423
Segment Liabilities* :
Fees Received in advance 404,679,405 14,303,125 244,525,109 663,507,639

Revenue by Geographic Segments (Rupees)

Country
India 2,924,118,268
United Kingdom 1,567,311,129
United States Of America 1,456,175,418
Others 336,822,754
Total 6,284,427,569

103
 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, 2009

(Rupees)
Particulars Business segments
Total
Ratings Advisory Research
Operating Revenue 2,389,016,014 599,097,502 2,384,610,124 5,372,723,640
Segment Results 1,007,409,721 130,052,171 861,121,490 1,998,583,382
Add / ( Less ) Unallocables :
1. Unallocable Income
Interest Income 106,525,306
Profit on sale of Fixed Asset -
Profit on sale of current 96,467,976
investments
Others 26,220,745
2. Unallocable Expenditure (4,683,055)
3. Depreciation (148,515,395)
Profit Before Tax 2,074,598,959
Tax Expense (466,822,359)
Profit After Tax and before prior 1,607,776,600
period items
Prior period expense, net of tax -
Profit After Tax 1,607,776,600
Non-cash expenses other than 20,770,218 14,829,854 8,168,808 43,768,880
depreciation and amortisation
Segment Assets* :
Segment Debtors 349,169,666 280,081,519 375,750,986 1,005,002,171
Segment Liabilities* :
Fees Received in advance 377,381,301 10,479,731 181,069,166 568,930,198

Revenue by Geographic Segments (Rupees)

Country
India 2,462,053,264
United Kingdom 1,286,326,050
United States Of America 1,299,735,946
Others 324,608,380
Total 5,372,723,640
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, as the Fixed assets and services are used interchangeably between segments.
The Company believes that it is currently not practical to provide segment disclosure, except as disclosed
above, relating to total assets and liabilities since a meaningful segregation of the available data is not
feasible.
The Group recovered certain common expenses from subsidiaries based on management estimates and
the same form a part of the segment results.

104
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

7. List of related parties

Parties Relationship
Related parties where control exists
The McGraw-Hill Companies, Inc The Ultimate Holding Company
Other Related parties
S&P India, LLC Fellow Subsidiary
Standard & Poor’s LLC Fellow Subsidiary
Standard & Poor’s International LLC, USA Fellow Subsidiary
Standard & Poor’s South Asia Services Private Limited Fellow Subsidiary
McGraw-Hill Education India Private Limited Fellow Subsidiary
Key Management Personnel
Roopa Kudva Managing Director & Chief Executive Officer

Related Party Disclosure

(Rupees)
Name of the related party Nature of transaction Year Ended Year Ended
Dec 31,2010 Dec 31,2009
Standard & Poor’s’ LLC Professional Services 832,495,699 735,549,171
Rendered
Revenue share paid 1,728,135 -
Reimbursement of 1,051,712 12,255
expenses
Amount Receivable 112,518,352 85,049,309

S&P India, LLC Dividend 624,189,600 312,094,800

Share Capital Outstanding 31,209,480 31,209,480

Standard & Poor’s South Asia Professional Services 12,145,726 7,141,028

Services Private Limited Rendered
Reimbursement of 6,310,462 18,220,525
expenses
Amount Receivable 3,508,663 9,791,805

Standard & Poor’s International Dividend 120,000,000 60,000,000

LLC, USA
Share Capital Outstanding 6,000,000 6,000,000

The McGraw-Hill Companies, Inc Expenses Recovered 35,441 61,018

Amount Receivable - 9,851

McGraw-Hill Education India Expenses Recovered 377,179 -

Private Limited
Amount Receivable 345,602 -
Roopa Kudva* Remuneration paid 24,630,521 19,000,942

*Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for
the Group as a whole, the amount pertaining to directors is not included above.

105
 Consolidated financial statements
Schedules annexed to and forming part of the Consolidated Accounts

Schedules
annexed to and forming part of the Consolidated Accounts

8. The Company has 49% interest in India Index Services and Products Limited (a joint venture in India
with National Stock Exchange). As per the Accounting Standard relating to Financial Reporting
of Interest in Joint Venture (AS 27) notified by Companies Accounting Standards Rules, 2006 as
amended,the details of interest in the Joint Venture are as under :
(Rupees)
Unaudited
Year Ended Year Ended
Dec 31,2010 Dec 31,2009
Assets 169,426,889 122,961,959
Reserves and Surplus 151,399,383 106,994,133
Liabilities 11,657,506 9,597,826
Income 86,332,820 66,213,270
Expenses 15,470,305 10,057,344
Tax Expense 22,353,567 17,611,858
Contingent Liability 9,034,660 3,238,192

9. Operating Lease
The Group has taken certain office premises on non cancellable operating lease basis. Some of these
agreements have a price escalation clause. Details as regards payments and future commitments are
as under :
(Rupees)
Year Ended Year Ended
Dec 31,2010 Dec 31,2009
Lease Payment recognised in Profit & Loss Account 435,747,372 287,569,871
Future Minimum Lease Payments :
Not later than One Year 387,083,281 441,964,906
Later than One Year & not later than Five Years 1,859,368,594 2,429,083,909
Later than FiveYears 1,740,130,224 1,202,509,669
3,986,582,099 4,073,558,484

10. Gratuity and Leave Encashment Benefits Group in the form of a qualifying insurance
policy.
The Group has a defined benefit gratuity
plan. Every employee who has completed The following tables summarise the
five years or more of service gets a gratuity components of net benefit expense
on departure at 15 days salary (last drawn recognised in the profit and loss account and
salary) for each completed year of service. the funded status and amounts recognised in
The scheme is funded with an insurance the balance sheet for the respective plans.

106
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

Profit & Loss Account:

Net employee benefit expense (recognised in Employee Cost)
(Rupees)
Year Ended Year Ended
Dec 31,2010 Dec 31,2009
Current Service cost 16,653,546 14,085,580
Interest cost on defined benefit obligation 4,774,974 3,128,810
Expected return on plan assets (3,794,502) (2,845,210)
Net actuarial (gain)/ loss recognised in the year 39,908,371 4,109,140
Past Service Cost 4,105,740 -
Losses/(Gains) on “Acquisition/Divestiture” (170,956) -
Net Gratuity Benefit Expense 61,477,173 18,478,320

Balance Sheet:
Details of Provision for Gratuity Benefit
(Rupees)
As on As on
Dec 31,2010 Dec 31,2009
Present value of funded obligations 122,357,703 59,956,960
Fair value of plan assets (54,956,729) (51,514,412)
Net Liability 67,400,974 8,442,548

Changes in the present value of the defined benefit obligation are as follows:
Opening Defined Benefit Obligation 59,956,957 46,923,957
Current Service Cost 16,653,548 14,085,580
Interest Cost 4,774,974 3,128,810
Plan Amendments 4,105,740 -
Actuarial (gain)/loss 42,889,085 2,629,250
Liabilities assumed on acquisition/(Settled on Divestiture) 5,212,394 -
Benefits paid (11,234,995) (6,810,637)
Closing Defined Benefit Obligation 122,357,703 59,956,960

Changes in the fair value of plan assets are as follows:

Opening Fair value of plan assets 51,514,412 25,723,052
Expected return on plan assets 3,794,502 2,845,210
Actuarial gain/ (loss) 2,980,714 (1,479,890)
Contribution by employer 5,835,906 31,236,680
Asset acquired on acquisition 2,066,199 -
Benefits paid (11,235,004) (6,810,640)
Closing Fair Value of Plan Assets 54,956,729 51,514,412

Details of experience adjustment on plan assets and liabilities are as follows :

(Rupees)
As on As on As on As on
Dec 31, 2007 Dec 31, 2008 Dec 31,2009 Dec 31,2010
Experience adjustment on plan assets 853,712 3,523,032 (1,479,840) 3,581,797
Experience adjustment on plan liabilities 2,802,726 (299,664) (3,207,220) (40,991,052)

107
 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 Year Ended
Dec 31,2010 Dec 31, 2009
Investment with Insurer 100% 100%
Actual return on plan assets (Based on interest rate declared by 9.25% 9.30%
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, applicable to the period over which the obligation is to be settled.

The principal assumptions used in determining Gratuity for the Group’s plans is as below:
(Rupees)
Year Ended Year Ended
Dec 31,2010 Dec 31, 2009
Discount Rate 8.20% 8.20%
Estimated rate of return on plan assets 7.50% 7.50%
Expected Employee Turnover
Age : 21-44 Years 6.50% 6.50%
Age : 44-57 Years 6.00% 6.00%
Expected Employer’s Contribution next year 35,000,000 33,000,000
With respect to foreign subsidiaries Gratuity and other retiral benefits are provided as per local statute.

11. The accounts of India Index Services and the hedge programme covered only forex
Products Limited is unaudited and the receivable for which CRISIL followed AS
financial statements (excluding notes to 11 “Accounting for the Effects of Changes
accounts) as certified by the management, in Foreign Exchange Rates”. However,
have been considered in these consolidated at the later part of the year, CRISIL has
financial statements. increased the hedge programme to cover
forecasted revenue as against receivable
12. CRISIL Limited sold balance 10% stake in
as a part of risk management strategy.
Gas Strategies Group Limited in September
Accounting for revenue hedge is done as per
2010.
guidelines prescribed under AS 30 “Financial

13. During the Current Year company has Instruments: Recognition and Measurement”

initiated a hedge programme to mitigate wherein mark to market on forward contracts

foreign exchange (forex) related risk. Initially are routed through hedging reserve account

Forward Contract Outstanding as at 31st December 2010 :

Currency Amount Amount in INR
USD 16,000,000 752,973,336
GBP 6,000,000 442,547,500
EUR 3,000,000 187,153,750

108
 Ready for the next level.

Schedules
annexed to and forming part of the Consolidated Accounts

14. In accordance with Sec 77A, 77AA and 77B 15. On 3rd December 2010, CRISIL Limited
of the Companies Act,1956 and pursuant acquired 100% ownership in Pipal Research
to the buy back announcement made by Analytics and Information Services India
the Company on September 9, 2010 the Private Limited.
Company has bought back from the open
16. Prior period item includes gratuity expense
market through stock exchanges 128,156
Rs.27,444,953 (net of tax).
equity shares of Rs. 10 each during the year
for a total consideration of Rs.796,858,024 17. CRISIL’s subsidiary in Poland has received
which have been subsequently extinguished. an in principle approval for sanction of grant
Consequently, an amount of Rs.1,281,560 amounting to Rs. 78,344,920 . The grant has
being the nominal value of equity shares been awarded under Operational Program
bought back has been transferred to Capital - Innovative Economy scheme and will be
Redemption Reserve Account from General available to the Company over a period
Reserve. An amount of Rs. 474,890,071 of 5 years, subject to fulfillment of certain
being the premium on buy back has been conditions.
appropriated from Securities Premium. An
amount of Rs. 320,686,393 being the balance 18. Previous year comparatives
premium on buy back has been appropriated Previous year’s figures have been regrouped
from General Reserve. The Board of where necessary to conform to current year’s
Directors, at its meeting held on September 9, classification.
2010 approved the buyback of equity shares
of the Company.

As per our report of even date.

For S.R. BATLIBOI & CO.
Firm Registration No.: 301003E For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
per Shrawan Jalan Rama Bijapurkar Thomas Schiller B. V. Bhargava
Partner Director Director Director
Membership No.: 102102
Mumbai, February 14, 2011 Roopa Kudva H.N. Sinor
Managing Director & Director
Chief Executive Officer

Shrikant Dev
Company Secretary
Mumbai, February 14, 2011

109
110
Statement pursuant to details to be furnished for subsidiaries as prescribed by the Ministry of Corporate Affairs
(Rupees)
1. Name of the subsidiary CRISIL Risk and CRISIL Credit CRISIL Irevna CRISIL Irevna Irevna Limited, Irevna LLC, US Pipal Research
company Infrastructure Solutions Information Argentina S.A. Poland [Link].o. UK Analytics and
Limited Services Limited Information
Services (I) Pvt.
Ltd.
Schedules

2. Share Capital 49,999,900 Equity 50,000 Equity 741,072 Equity 100 Equity 2,056,000 1 Equity Share 10,000 Equity
Shares of Re.1 each, Shares of Rs.10 Shares of ARS Shares of PLN Equity Shares of of US$ 200 Shares of Rs.10
fully paid up each, fully paid 1 each, fully 500 each, fully of £ 1 each, fully each, fully paid each, fully paid
up paid up paid up paid up up up
3. Reserves & Surplus 217,117,140 (94,556) 15,447,452 3,361,835 (4,906,591) (60,284,539) (19,186,758)
4. Total Assets 398,780,704 416,474 39,214,853 16,096,823 2,189,273,877 175,241,305 59,252,084
5. Total Liabilities 398,780,704 416,474 39,214,853 16,096,823 2,189,273,877 175,241,305 59,252,084
6. Investments - - - - 790,231 552,732 -
7. Turnover 520,116,753 - 95,257,546 33,488,498 1,138,492,963 651,876,431 28,694,455
8. Profit/(Loss) Before Taxation 73,541,009 (11,085) 11,676,009 2,715,148 (5,358,994) 1,242,566 2,878,489
9. Tax Expense 23,287,006 - 6,443,814 675,558 203,067 494,068 -
Consolidated financial statements

10. Profit After Taxation 50,254,003 (11,085) 5,232,195 2,039,590 (5,562,061) 748,498 2,878,489
annexed to and forming part of the Consolidated Accounts

11. Dividend Paid - - - - - -

Schedules annexed to and forming part of the Consolidated Accounts

For and on behalf of the Board of Directors of CRISIL Limited

Rama Bijapurkar B. V. Bhargava H.N. Sinor Thomas Schiller
Director Director Director Director

Roopa Kudva Shrikant Dev

Managing Director & Chief Executive Officer Company Secretary
Mumbai, February 14, 2011
 Ready for the next level.

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, April 15, 2011 at 3.30 pm at Rangaswar Hall, 4th floor,
Yashwantrao Chavan Pratishthan, Gen Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana,
Mumbai – 400021, to transact the following business:

Ordinary Business
1. To receive, consider and adopt the audited Profit & Loss Account of the Company for the year
ended December 31, 2010 and Balance Sheet as at that date, together with the Report of the
Board of Directors and Auditors thereon.

2. To confirm the payment of interim dividends on the Equity shares for the year ended December 31,
2010 and declare final dividend for the year 2010 on equity shares.

3. To appoint a Director in place of Mr. B.V. Bhargava, who retires by rotation and, being eligible, offer
himself for reappointment.

4. To appoint a Director in place of Dr. Nachiket Mor, who retires by rotation and, being eligible, offer
himself for reappointment.

5. To consider and if thought fit, to pass, with or without modification, the following resolution, as an
Ordinary Resolution:

“RESOLVED that Messrs S.R. Batliboi & Co., Chartered Accountants, 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.”

By Order of the Board

For CRISIL Limited

Shrikant Dev
Mumbai, February 14, 2011 Company Secretary

111
 notice (contd.)

NOTES:
1. 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. A proxy form duly completed, stamped and signed should reach the Registered Office of the Company
not less than 48 hours before the time of the Annual General Meeting.

3. The Register of Members and Share Transfer Books of the Company will remain closed from
Wednesday, March 16, 2011 to Thursday, March 17, 2011 (both days inclusive).

4. Members are requested to note that the Company’s shares are under compulsory demat trading
for all investors. Members are, therefore, requested to dematerialise their shareholding to avoid
inconvenience.

5. Dividend as recommended by the Board of Directors, if declared at the Annual General Meeting, 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, March 15, 2011; and

(i) In respect of shares held in electronic form, 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, March 15, 2011.

6. In accordance with the provisions of Section 205A of the Companies Act, 1956, 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. Members who have a valid claim to the said unclaimed dividend may claim
the same from the Company before the transfer takes place.

7. 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, 1956. The
accounts of the subsidiary companies, therefore, are not separately included in the Annual Report.
However, the consolidated financial statements, duly audited by the Statutory Auditors, include accounts
of subsidiary companies. The Accounts of subsidiary companies and other detailed information will be
made available to the investors seeking information at the Company’s Registered Office.

8. 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 11.00 a.m. and 1.00 p.m. on all working
days from the date hereof upto the date of the Meeting.

Pursuant to Clause 49 of the listing agreement with the stock exchanges, the following
information is furnished about the Directors proposed to be appointed/re-appointed.

Item No. 3
Dr. Nachiket Mor, Director, retires by rotation and being eligible, offers himself for re-appointment. A brief
resume of Dr. Nachiket Mor is given below:

Dr. Nachiket Mor is a Yale World Fellow; has a Ph.D. in Economics from the University of Pennsylvania
with a specialization in Finance from the Wharton School; an MBA from the Indian Institute of Management,
Ahmedabad; and an undergraduate degree in Physics from the Mumbai University.

While completing his Ph.D., he was associated with a Philadelphia based hedge fund (Quantitative
Financial Strategies) for three years. He has worked with ICICI from 1987 to 2007 in a variety of jobs,
including Corporate Planning, Project Finance, Rural Finance and Treasury and was a member of its Board

112
 Ready for the next level.

of Directors from 2001 to 2007. From October 2007 to August 2010, he assisted ICICI in setting up a
philanthropic foundation, the ICICI Foundation for Inclusive Growth and served as its founding President.
He is now the Chairman of the Boards of Sughavazhvu Health Care, CARE India and IFMR Trust and is
closely involved in the evolution of these three organizations.

Dr. Nachiket Mor is currently also an independent member of a few other Boards including IKP Trust; IKP
Centre for Technologies in Public Health; IKP Centre for Advancement in Agricultural Practice; and the
Institute for Financial Management and Research. 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. He is a member of the Audit Committee and Chairman of the Allotment Committee
of CRISIL Limited.

He does not hold any share in the Company.

The Board considers it in the interest of the Company to appoint Dr. Nachiket Mor as a Director.

None of the Directors, except Dr. Nachiket Mor, is interested or concerned in this Resolution.

Item No. 4
Mr. B.V. Bhargava, Director, retires by rotation and being eligible, offers himself for re-appointment. A brief
resume of Mr. B.V. Bhargava is given below:

Mr. B.V. Bhargava has been associated with CRISIL since 1992, and has been Chairman from May 1999
to July 2008. He is also Chairman of CRISIL’s Rating Committee. He was associated with ICICI Limited for
three decades, and retired as Vice-Chairman and Managing Director in 1996. He was associated with the
Tariff Commission of India and the Indian Investment Centre, New York.

He is currently on the Board of ICICI Lombard General Insurance Company Limited, Supreme Industries
Limited, Grasim Industries Limited, J.K. Lakshmi Cement Limited, Excel Crop Care Limited, L&T
Infrastructure Finance Limited, Grasim Bhiwani Textiles Limited, Lakshmi Precision Screws Limited, L&T
Finance Holdings Limited and Maxx Mobile Communications Limited.

He is member of the Audit Committee of CRISIL Limited, L&T Finance Holdings Limited and Chairman of
the Audit Committee of J.K. Lakshmi Cement Limited, Grasim Industries Limited, Excel Crop Care Limited
and Grasim Bhiwani Textiles Limited. He is also the Chairman of Investors’ Grievance Committee of CRISIL
Limited and member of the Investors’ Grievance Committee of Maxx Mobile Communications Limited.

Mr. B.V. Bhargava does not hold any share in the Company.

The Board considers it in the interest of the Company to appoint Mr. B.V. Bhargava as a Director.

None of the Directors, except Mr. B.V. Bhargava, is interested or concerned in this Resolution.

By Order of the Board

For CRISIL Limited

Shrikant Dev
Mumbai, February 14, 2011 Company Secretary

Registered Office:
CRISIL House,
Central Avenue, Hiranandani Business Park,
Powai, Mumbai – 400076.

113
 CRISIL LOCATIONS
Registered Office The Oval Pune
CRISIL House, No.10 & 12 (57 & 58), Crisil Limited,
Venkatnarayana Road, 1187/17, Ghole Road, Shivajinagar,
Central Avenue,
Hiranandani Business Park, T. Nagar, Chennai-600 017 Pune-411 005

Powai, Mumbai-400 076 Tel : + 91-44-4226-3000 Tel : + 91-20-4018-1900

Fax : + 91-44-4226-3001 + 91-20-2553-9064/67
Tel : + 91-22-3342-3000
Fax : + 91-20-4018-1930
Fax : + 91-22-3342-3810 TVH -Beliciaa Towers
3rd Floor, Tower –II, Overseas Offices
City Office
Unit no 104 & 201, Kensington Block No.94, MRC Nagar Irevna Limited
London
A wing-lT/ITES SEZ, Chennai-600 028
#33 Throgmorton Street,
Hiranandani Business Park, Tel : + 91-44-4226-3400
London EC2N 2BR UK,
Powai, Mumbai-400 070 Fax : + 91-44-4226-3001
Tel : + 44-870-333-6336
Tel : + 91-22-4047-2100 Gurgaon Fax : + 44-(0)20-156-5001
Fax : + 91-22-4047-2045 Pipal Research Analytics &
Information Services India Pvt. Ltd Irevna LLC.
Regional Offices
Plot no- 23, Sector- 18, New York
Ahmedabad 1560 Broadway, 10th Floor,
H.S.I.D.C. Maruti Industrial Area,
Unit No.706, 7th Floor, New York, New York 10036.U.S.A
Gurgaon-122 015, Haryana
Venus Atlantis, Prahladnagar , Tel : + 1-877-747-3862
Tel : + 91-124-460-5400
Satellite, Ahmedabad-380 015 Tel : (Outside USA) :
Fax : + 91-124-560-5505
Tel : + 91-79-4024-4500 + 1-646-292-3520

Fax : + 91-79-4024-4520 Hyderabad Fax : + 1-646-292-3521

Uma Chambers, 3rd floor, [Link]
Bengaluru
Plot no. 9 & 10 Nagarjuna Hills,
W-101, 1st floor, Sunrise Chambers, 22, Chicago
Near Punjagutta Cross Road, 601 W. Randolph, Suite 400,
Ulsoor Road, Bengaluru-560 042
Hyderabad-500 082 Chicago, IL 60661
Tel: + 91-80-4244-5399
Tel : + 91-40-2335-8103 / 05
Fax: + 91-80-4244-5300 CRISIL Irevna Argentina SA
Fax : + 91-40-2335-7507
Pipal Research Analytics & Information Argentina
Services India Pvt. Ltd. Av. del Libertador 1969. 2nd Floor
Kolkata
“Sharma Complex”, Office No. 415, B1638BGF Olivos
Horizon, Block-B, 4th Flr,
2nd floor, 1st Block, Matadahalli, Provincia de Buenos Aires
57, Chowringhee Road,
R.T. Nagar Main Road, Argentina
Kolkata-700 071
Bengaluru-560 032 Tel : + 5411-4837-7600
Tel : + 91-33-4011-8200 / 28
Chennai Fax : + 91-33-2283-0597 Fax : + 5411-4837-7667
Thapar House, [Link]
Mezzanine Floor, No 37 New Delhi
The Mira, G-1, 1st Floor, CRISIL Irevna Poland Sp. Z.o.o
Montieth Road, Egmore,
Poland
Plot No.1 & 2, Ishwar Nagar
Chennai – 600 008. Renaissance Business Centre, 6th
Near Okhla Crossing,
Tel : + 91-44-2854-6205 / 06 Floor,
New Delhi-110 065
Fax : + 91-44-2854-7531 ul. Świętego Mikołaja 7
Tel : + 91-11-4250-5100/
Bascon Futura IT Park 50-125 Wrocław,
2693-0117
8th floor, 56 L, Venkatnarayana Road, Tel : + 48-71-324-1720
Fax : + 91-11-2684-2212
T. Nagar, Chennai - 600 017 (Ratings)
Tel : + 91-44-4226-3400 + 91-11-2684-2213
Fax : + 91-44-4226-3001 (Infrastructure Advisory)

114
 Registered Office: CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400076.

PROXY FORM

Regd. Folio No................................................ No. of Shares held .............................................

I/We...........................................................................................................................................................................................................

of .................................................................................................... being member/members of CRISIL LIMITED hereby appoint Mr./Ms.

...........................................................................................of .................................................................................................................or

failing him Mr./Ms............................................................. of ......................................................................................................................

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, April 15, 2011 at 3.30 p.m. at Rangaswar Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg,
Next to Sachivalaya Gymkhana, Mumbai 400021.

Revenue
stamp of 15
paise

Signed this ................. .......... day of .............................................2011. Signature ..............................

Note : This form, duly completed and signed, must be deposited at the Registered Office of the Company not less than 48 hours before
the time of the meeting.

CRISIL LIMITED
Registered Office: CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400076.

ATTENDANCE SLIP
(To be handed over at the entrance of the meeting hall)
24th Annual General Meeting – April 15, 2011

I hereby record my presence at the TWENTY FOURTH ANNUAL GENERAL MEETING of the Company held on Friday, April 15, 2011
at 3.30 p.m. at Rangaswar Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya
Gymkhana, Mumbai 400021.

Full Name of the Member (in BLOCK LETTERS) .......................................................................................................................................

......................................................................................................................................................................................................................

Regd. Folio No.......................................................................................... No. of Shares held .....................................................................

Full Name of the Proxy (in BLOCK LETTERS) ...........................................................................................................................................

Member’s/Proxy’s Signature.........................................................................................................................................................................
Printed on 100% recycled paper.
 Printed at GP Offset Pvt Ltd

CRISIL Limited
CRISIL House, Central Avenue, Hiranandani Business Park,
Powai, Mumbai - 400 076. India.
Phone: +91 (22) 3342 3000

[Link]  |  [Link]