Going Beyond

CRISIL Limited
Annual Report 2020
Inside the report

01 02-37
Corporate Overview

Message from the Chairman...............................................................................02

About CRISIL.........................................................................................................04

Board of Directors.................................................................................................06

Performance Hightlights......................................................................................14

CRISIL Businesses................................................................................................16

Reports & Publications........................................................................................18

Franchise Highlights............................................................................................20

Employee Engagement Initiatives.......................................................................26

Corporate Social Responsibility..........................................................................32

02 40-113
Statutory Reports

Directors’ Report...................................................................................................40

Management Discussion and Analysis Report..................................................62

Independent Auditors’ Certificate on Corporate Governance...........................74

Report of the Directors on Corporate Governance.............................................75

Business Responsibility Report..........................................................................96

03 116-230
Financial Statements

Consolidated Financial Statements................................................................ 116

Standalone Financial Statements................................................................... 176

Notice................................................................................................................. 231
CRISIL Limited

Message from the

Chairman
Dear Shareholders,
The Covid-19 pandemic disrupted
the world order during 2020 causing
large-scale humanitarian, social and
economic impact across nations.
But I note with great pride that
your Company stayed resilient and
relevant through it all. Our people-
first approach ensured we moved
to ‘work from home’ proactively and
enhanced employee support, safety
and information security measures.
Investments in technology, strong risk
management and business continuity
discipline cultured over the years
ensured we remained fully operational,
serving and meeting the needs of our
stakeholders.
Among our businesses, Ratings,
Global Analytical Centre (GAC) and
Global Research and Analytics
(GR&A) put in strong performance
despite the external environment.
Ratings consolidated its market
leadership, driven by its best-in-class
ratings quality, market coverage and
client engagement. GAC increased
surveillance delegation and coverage
on research and criteria support
for S&P Global Ratings. GR&A, on
its part, witnessed good growth in
traditional areas such as model and
traded risk, and expanded its offerings
in the non-financial and credit risk
space. Your Company also introduced
new analytics such as district-level
tracking dashboards and alternative
investment fund or AIF benchmarks for
the Indian market.
During the year, we completed the
acquisition of Greenwich Associates,
a leading provider of proprietary
benchmarking data, analytics and
qualitative insights to financial
services firms worldwide. This
complements the strengths of our
Coalition business and positions us
well to expand our suite of global
benchmarking analytics.

02
Annual Report 2020

Corporate Overview
We completed the acquisition of Greenwich Associates, a leading
provider of proprietary benchmarking data, analytics and qualitative
insights to financial services firms worldwide. This complements
the strengths of our Coalition business and positions us well to
expand our suite of global benchmarking analytics.

The Advisory business won us new Our efforts and unwavering

mandates in areas of regulatory commitment to stakeholders,
reporting, credit risk and select city governance, compliance and ethics
infrastructure projects. However, the earned strong recognition – The Great
pandemic-induced client delays and Place to Work™ certification and the

Statuory Reports
budgetary constraints created some Most Ethical Business Group honour
headwinds for the segment. at the Compliance 10/10 Awards, to
name some.
Employee experience and engagement
took on a new dimension with people I take this opportunity to thank all our
care and safety being a key priority on employees for their hard work and
our agenda through 2020. We redefined dedication. I would also like to thank
the way we engaged, on-boarded new you, our shareholders, for your strong
employees and conducted training support over the years.
programmes – all virtually.
Wish you good health and success.
We amplified our interactions,
Warm regards,
franchise and thought-leadership,
thus enabling stakeholders to decrypt
volatile trends across markets and

Financial Statements
witnessed record participation at our
webinars and events.
Pursuant to changes in the Securities
John L Berisford
and Exchange Board of India (SEBI)
regulations, we completed the Chairman
segregation of our credit ratings
business into a wholly owned
subsidiary, CRISIL Ratings Ltd.
As a socially conscious corporate
citizen, we devoted efforts to serve
those impacted by the pandemic.
We served over 500,000 meals to
migrant workers and labourers in
Mumbai, extended treatment support
across several locations, even as we
continued to expand Mein Pragati-
our financial inclusion programme
and CRISIL RE-our environment
conservation initiative.

03
CRISIL Limited

About CRISIL

Who we CRISIL is a leading, agile and innovative global analytics company

driven by its mission of making markets function better. We are
are India’s foremost provider of ratings, data, research, analytics, and
solutions. A strong track record of growth, culture of innovation
and global footprint sets us apart. We have delivered independent
opinions, actionable insights, and efficient solutions to over
100,000 customers. Our businesses operate from India, Argentina,
Australia, China, Hong Kong, Poland, Singapore, Switzerland, and
the United Arab Emirates (UAE), the United Kingdom (UK), the
United States of America (USA). We are majority owned by S&P
Global Inc., a leading provider of transparent and independent
ratings, benchmarks, analytics, and data to the capital and
commodity markets worldwide.

Who we Our clients range from large corporates to investors and top
global financial institutions. We work with commercial and
serve investment banks, insurance companies, private equity players,
and asset management companies globally. We also engage with
governments and policy makers in the infrastructure space in
India and other emerging markets.

How we Our market leading ratings, benchmarks, analytics, and

solutions empower lenders, borrowers, issuers, investors,
add value regulators, and intermediaries to make decisions with
conviction. We help clients manage and mitigate risks, take
pricing and valuation decisions, reduce time to market, generate
more revenue, and enhance returns. By helping shape public
policy on infrastructure in emerging markets, we help catalyse
economic growth and development.

04
 Corporate Overview Statuory Reports Financial Statements

05
Annual Report 2020
CRISIL Limited

Board of Directors

John L Berisford
Chairman

Mr John Berisford is the President of S&P Global Before joining S&P Global in 2011, Mr Berisford spent 22
Ratings. He has the ultimate responsibility of all aspects successful years at PepsiCo, where he spearheaded a
of the business, including commercial, analytical, control, number of important global initiatives and transformations.
technology and operations. Among other strategic projects, he led the integration after
PepsiCo acquired the independent Pepsi Bottling Group
S&P Global Ratings is regulated in many of the countries
into its overall corporate structure.
in which it operates. Mr Berisford is a director of two
of its largest legal entities, S&P Global Ratings Europe Mr Berisford holds a bachelor’s degree in political science
Limited and Standard & Poor’s Financial Services LLC. from West Liberty College in West Virginia and a master’s
degree in labour and industrial relations from West Virginia
Previously, Mr Berisford was the Executive Vice President
University.
of Human Resources for S&P Global Inc (formerly known
as The McGraw-Hill Companies). In this role, he was
instrumental in creating and executing the Company’s
growth and value plan, resulting in the creation of McGraw
Hill Financial and the sale of McGraw Hill Education. He led
the initiative to create the Company’s focused business unit
operating model, while strengthening the human resource
function with new capabilities to support growth and
performance goals.

06
Annual Report 2020

Corporate Overview
Statuory Reports
M Damodaran Vinita Bali
Independent Director Independent Director

Mr M Damodaran, a former Indian Administrative Service Ms Vinita Bali is a global business leader with extensive
officer, has held a number of important positions in both experience in leading large companies both in India and
central and state governments, and in India’s financial overseas. She brings a global and pragmatic perspective
sector, before demitting office as the Chairman of the to strategy, marketing, innovation and operations, having
Securities and Exchange Board of India (SEBI) in February worked with eminent multinational companies such as
2008. The Coca-Cola Company and Cadbury Schweppes PLC in
a variety of marketing and chief executive roles in the UK,
As SEBI’s Chairman, Mr Damodaran brought several
Nigeria, South Africa, Latin America, and the US, in addition
best practices to India and its securities market. During
to Britannia Industries Ltd in India.
his tenure at SEBI, he was elected as the Chairman of

Financial Statements
the 80-member Emerging Markets Committee of the Effective April 2014, she moved from a full-time operational
International Organisation of Securities Commissions. role as MD & CEO of Britannia to pursue her wide-ranging
interests in the corporate and development sectors. She
Prior to SEBI, he was the Chairman of the Unit Trust of
is a Non-Executive Director on the global boards of Bunge
India and Industrial Development Bank of India, and led
Limited and Cognizant Technology Solutions. She has also
the successful restructuring of both these institutions. His
served on the global boards of Smith and Nephew Plc,
earlier roles included Joint Secretary (Banking), Ministry of
Syngenta International AG and GAIN (Global Alliance for
Finance, Government of India; Joint Secretary, Ministry of
Improved Nutrition), a Swiss foundation, based in Geneva.
Information and Broadcasting, Government of India; and
Chief Secretary, Government of Tripura. In India, Ms Bali serves as a Non-Executive Director on the
Board of Syngene International Limited, is a Member of the
Furthermore, he was the Chairman of the Committee for
Board of Governors of the Indian Institute of Management,
Reforming the Regulatory Environment for Doing Business
Bengaluru and chairs the CII National Committee on
in India, Ministry of Corporate Affairs. He was also the first
Nutrition.
Chairman of the Society and Board of Governors of the
Indian Institute of Management, Tiruchirappalli. Ms Bali holds a graduate degree in economics from
the University of Delhi and a master’s degree in
At present, Mr Damodaran is an independent director
management studies from the University of Mumbai.
on the boards of some of India’s leading companies.
He is the founder of Excellence Enablers, a corporate
governance advisory firm that focusses on improving board
performance. He is also the Non-Executive Chairman of the
Board of InterGlobe Aviation Limited.

07
CRISIL Limited

Ewout Steenbergen Girish Paranjpe

Director Independent Director
Mr Ewout Steenbergen is the Executive Vice President Mr Girish Paranjpe is a co-promoter of Exfinity Venture
and Chief Financial Officer (CFO) of S&P Global. As CFO, Partners, a venture fund which invests in tech start-ups.
Mr Steenbergen is responsible for all aspects of the He is a General Partner at Exfinity and a member of the
finance department, focused on growth and sustainable Investment Committee.
shareholder value. He is also responsible for strategy &
Mr Paranjpe served as the Co-CEO of Wipro Limited’s
corporate development and Kensho.
Information Technology (IT) business during 2008-11 and
Before being appointed as the CFO of S&P Global in was a member of its Board of Directors. Mr Paranjpe had a
2016, he was the Executive Vice President and CFO of two decade-long tenure at Wipro, where he led the
Voya Financial Inc. Before that, he was the CFO and Chief IT business and held other senior positions, as
Risk Officer for ING Asia-Pacific and held a number of President - Financial Services Consulting and Marketing,
management roles in the ING Group, including serving as Head - Financial Services, and CFO - IT business.
Regional General Manager in Hong Kong and the CEO of
More recently, Mr Paranjpe was the MD of Bloom Energy
RVS, an ING Group company based in the Netherlands.
International, a Silicon Valley-based alternative energy
He has also held other international roles such as CEO of company.
ING’s retail business in the Czech and Slovak Republics and
Mr Paranjpe is an Operating Partner in Advent International,
the CEO of ING Nationale-Nederlanden Slovak Republic.
a Boston-headquartered private equity firm. He is also
Mr Steenbergen holds a master’s degree in actuarial on Advent’s advisory board and serves on the boards of
science from the University of Amsterdam and a master’s two Advent-invested companies — Dixcy Textiles and ASK
degree in business administration from the University of Investment Managers. He also serves as an Independent
Rochester and Nyenrode University. Director on the Board of Axis Bank.
He also serves as a Co-Chair of the Board of Directors of Mr Paranjpe is a fellow member of the Institute of
United Nations International Children’s Emergency Fund, Chartered Accountants of India and the Institute of Cost
US. and Works Accountants of India.

08
Annual Report 2020

Corporate Overview
Statuory Reports
Martin Fraenkel Shyamala Gopinath
Director Independent Director
Mr Martin Fraenkel is the President of S&P Global Platts, a Ms Shyamala Gopinath has 41 years of rich experience in
division of S&P Global and the leading independent provider financial sector policy formulation in different capacities at The
of information and benchmark prices for the commodities Reserve Bank of India (RBI). At the RBI, she held key positions,
and energy markets. Based in London, Mr Fraenkel is a guided and influenced national policies in diverse areas of
member of the S&P Global Operating Committee. financial sector regulation and supervision, was involved
in the development and regulation of financial markets,
He was appointed as the President of Platts in September
capital account management, management of government
2016, after joining as the Global Head of Content in 2015.
borrowings, foreign exchange reserve management and
Previously, he was the Managing Director and Global Head payment and settlement systems. She has served on several

Financial Statements
of Energy at CME Group. Before that, he held senior roles committees during her tenure at the RBI. During 2001-03, she
managing global sales and trading businesses for top- was deputed as the Senior Financial Expert at the International
tier investment banks such as Credit Agricole CIB, NM Monetary Fund. Ms Gopinath retired as Deputy Governor of the
Rothschild and Dresdner Kleinwort as the Global Head of RBI, a position she held for nearly seven years. She served as
Commodities and at JP Morgan Chase as the Global Head the Chairperson of the Advisory Board on Bank, Commercial
of Energy, Agriculture and Base Metals Trading and Head and Financial Frauds during 2012 to 2014.
of Commodities for EMEA. He has also provided consulting
Ms Gopinath was also the Chairperson of the Board of Corporate
services to leading exchanges, hedge funds, trade houses
Bonds and Securitisation Advisory Committee of SEBI.
and proprietary traders.
Since 2012, Ms Gopinath has held several board positions
Among other highlights, Mr Fraenkel has chaired the
in large corporates and public sector undertakings such as
London Gold Market, the operator of the global gold price
Clearing Corporation of India, Indian Oil Corporation Limited,
benchmark, and served on the board of the London Bullion
GAIL, Ernst & Young (Global Governance Council) and has
Market Association. He began his career in New York in
also served as a Non-Executive Chairperson of HDFC Bank
1984 as a base metals trader.
Limited. Presently, Ms Gopinath serves as an Independent
He has an MBA from INSEAD in Fontainebleau (France), a Director on the boards of other renowned companies. She is a
master’s degree from the School of Advanced International Chairperson of the Board of Governors of the Indian Institute
Studies of The Johns Hopkins University in Washington, of Management, Raipur. Ms Gopinath is member, Finance,
DC (US) and Bologna (Italy), and a bachelor’s degree in India Sanitation Coalition and also a member of Advisory
philosophy, politics and economics from Balliol College, Board of the WinPE ProClub Mentorship Programme.
University of Oxford (UK).
Ms Gopinath is a Certified Associate of the Indian Institute
He is also a Trustee of the Endowment of the Wiener Library, of Banking and Finance and holds a master’s degree in
London. commerce from the University of Mysore.

09
CRISIL Limited

Ashu Suyash
Managing Director and CEO

Ms Ashu Suyash is the Managing Director and Ms Suyash is a Chartered Accountant and holds a
CEO of CRISIL and is a member of the CRISIL Board. bachelor’s degree in commerce. She is a member of
She also serves as a member of the Operating Committee the Primary Market Advisory Committee of SEBI and
of S&P Global. the Advisory Committee on Corporate Insolvency and
Liquidation of Insolvency and Bankruptcy Board of India.
Ms Suyash leads CRISIL’s Indian and global businesses,
She is a member of the Corporate Governance Council of
steering its efforts to deliver high-quality analytics,
The Confederation of Indian Industry. She is also a member
opinions and solutions to corporations, investors, financial
of the governing board of the National Institute of Securities
institutions, policy makers and governments.
Markets, established by SEBI.
Ms Suyash has spent 30+ years in the financial services
Ms Suyash has a keen interest in the education sector
sector. Before joining CRISIL in 2015, she served as the
and is on the Advisory Board of the Chartered Institute
Chief Executive Officer of L&T Investment Management
for Securities & Investment. She is associated with the
Limited and L&T Capital Markets Limited. During 2003-12,
Board of Studies at NMIMS, NM College, and is also on the
she was Country Head and Managing Director of Fidelity’s
Advisory Board of Aseema Charitable Trust, an NGO that
Indian mutual fund business, which she helped set up.
provides education to underprivileged children.
Previously, she held several key positions across the
corporate, consumer and investment banking divisions
during her 15+ years’ tenure at Citibank.
Over the years, Ms Suyash has been featured among the
Top 50 Women in business in India and Asia by various
publications.

10
Annual Report 2020

Senior Ashu Suyash Amish Mehta

Managing Director and CEO Chief Operating Officer & President
Management
Gurpreet Chhatwal Dimitri Londos
Team Managing Director, President & Business Head,
CRISIL Ratings Limited CRISIL Global Research & Analytics
Stephane Besson Sameer Bhatia
President & Business Head, President, CRISIL Infrastructure Advisory and
CRISIL Coalition CRISIL Business Intelligence & Risk Solutions

Corporate Overview
Priti Arora Subodh Rai
Business Head - CRISIL Global Analytical Chief Ratings Officer,
Centre & Chief Strategy Officer CRISIL Ratings Limited
Sanjay Chakravarti Zak Murad
President & Chief Financial Officer Chief Technology & Information Officer
Pawan Agrawal Vivek Saxena
Chief Risk Officer General Counsel
Maya Vengurlekar Anupam Kaura
Chief Operating Officer, CRISIL Foundation & President & Chief Human Resources Officer
Senior Director, Marketing & Communications

Board Audit Company Secretary

Statuory Reports
Committees M. Damodaran Minal Bhosale
Chairman
Vinita Bali Statutory Auditors
Girish Paranjpe Walker Chandiok & Co LLP

Martin Fraenkel
Solicitors
Corporate Social Responsibility Wadia Ghandy & Co

Vinita Bali
Chairperson Main Bankers
ICICI Bank
Girish Paranjpe CitiBank NA

Financial Statements
Ashu Suyash HSBC
Union Bank of India
Stakeholders’ Relationship Indian Overseas Bank

Girish Paranjpe
Chairman
Share Transfer Agent
KFin Technologies Private Limited
Ewout Steenbergen Selenium Tower B, Plot 31-32,
Ashu Suyash Gachibowli Financial District,
Nanakramguda, Hyderabad - 500 032
Nomination and Remuneration Email: [Link]@[Link]
Phone No: +91 40 6716 2222
Vinita Bali Toll Free No: 1800 34 54 001
Chairperson
M. Damodaran Registered Office
John Berisford CRISIL House, Central Avenue,
Hiranandani Business Park, Powai,
Risk Management Mumbai - 400 076

Girish Paranjpe
Chairman
Shyamala Gopinath
Ashu Suyash

11
Going Beyond
in people engagement

Unleashing growth through unlimited

digital learning
Employees certified through 10,000+ digital
learning sessions
900 employees participated in 6 knowledge café
sessions

Raising the bar on well-being

CRISIL Care for hospitalisation support, enhanced
medical benefits
Frequent webinars on health and fitness

Enabling the home office

One-time well-being allowance to over 1,400 employees
Ask HR Bot launched for real-time response to queries

Unlocking opportunities in a lockdown

150+ internal job posts presented through virtual fairs
01
Corporate
Overview
 CRISIL Limited

Performance
Highlights

Income from Operations* Profit Before Depreciation and Tax*

Rupees in Crore Rupees in Crore
CAGR 10% CAGR 7%

700

579
2,500
1,982

542
600

528
493

480
1,748

1,732
1,658

443
1,548

2,000 500

412
397
1,380

348
1,253

400
1,111

305

1,500
978

300
807

1,000
200
500
100

0 0
‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

Profit After Tax* Dividend

Rupees in Crore Dividend (%)
CAGR 6% Normal Dividend %
Profit After Tax (excluding one time revenue) Special Dividend %
One time revenue
3,300
3,200
3,000

400 3,500
363

2,800
355
344

2,700

350 3,000
304
294
285
44

268

300

300
2,500
400
600

250
2

2,000
300
4

200
1,100

1,500
254

150
219

2,000
202

1,000
1,600

100
1,300

1,300

50 500

0 0
‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

14
 Annual Report 2020

Market capitalisation Earnings Per Share (EPS)*

Rupees in Crore In Rupees
CAGR 9% EPS
One time Impact

15,715
60

50.5
18,000

48.9
14,009

47.6
13,949
13,793
13,551

13,441
16,000 50

42.6
11,636

41.3
6.2

40.0
14,000

37.8

Corporate Overview
40
12,000

0.3
8,484

0.6
7,607

10,000
30
6,206

8,000

36.1
6,000 20

31.1
28.5
4,000
10
2,000
0 0
‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

Net worth per share* Return on average net worth*

In Rupees In %

Statuory Reports
60%
50%
180.7

200
162.1

46%
157.6

50%
42%
146.2
138.1

35%
120.2

150
118.9

33%

33%
40%
32%

30%

30%

29%
95.5

30%
75.3

100
58.9

20%
50
10%

Financial Statements
0 0%
‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

Income Per Employee*

Rupees in Lakhs
54.5

60
46.9
45.5

50
42.2
40.1
38.0
36.3

40
32.4
29.4
26.9

30

20

10

0 * Figures for 2020 to 2016 are as per Ind AS

‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 and for the earlier years as per IGAAP.

15
CRISIL Limited

CRISIL Businesses

CRISIL Ratings
We have ratings Our capabilities span the entire range of debt instruments. We improve access to funding for
outstanding on over issuers and borrowers, and help optimise their cost of funds. For investors and lenders, we
8,000 large and mid- supplement internal evaluation processes and benchmark credit quality across investment
scale corporates and options. We help markets function better and assist regulators in measuring and managing
financial institutions. credit risks at the systemic level.
Through our Global Analytical Centre (GAC), we provide analytical, research and data services
to S&P Global Inc. GAC partners with S&P Global Ratings Services (SPGRS) on data analytics,
research and analysis, modelling assignments, risk and regulatory services, sales and
marketing support, developing tech-enabled solutions including usage of data science and in
improving workflow efficiencies. GAC operates as a centralised research and analytics hub for
SPGRS teams spread across the US, EMEA and APAC regions.

CRISIL Global Research & Analytics (GR&A)

We are a leading We serve leading investment and commercial banks, private equity players, hedge funds, and
provider of high-end asset management and insurance companies globally. Our domain expertise and execution
risk, analytics and excellence backed by augmented intelligence enables customers to achieve goals and manage
bespoke research risks, complexity and change. We have offshore delivery centres in Argentina, China, India and
services to over 140 Poland and onsite delivery centres in London, Melbourne, Sydney, and New York, supporting
global and regional clients across time zones and languages. We support 17 of the top 20 global investment
financial institutions. banks, 19 of 35 bank holding companies, 4 of the top 10 asset managers, 3 of the top 15 global
insurers, 2 of the top 10 global consultants, and 26 credit risk teams of global banks, including
several global and domestic systemically important financial institutions.
We focus on reinventing our business model according to changing market needs and
transforming client requirements. We have made significant investments in technology and
have developed utilities, platforms, tools, and frameworks to remain the preferred partner
across the services we provide. We have more than 40 technology-enabled analytical solutions
and continue to invest in innovations. Our rapidly evolving data analytics and automation-
based solutions provide a distinct competitive edge to our clients. Our services empower
them to make key strategic and tactical business decisions to drive objectives such as cost
reduction, business transformation, alpha generation, increased revenue, and growing their
assets under management.

CRISIL Coalition
We are a leading We operate from five global locations, providing objective research and high-end analytics
business intelligence to support strategic and tactical decision-making across four areas: competitor analytics,
provider to more financial resources analytics, client analytics, and country analytics. Our team of industry
than 25 corporate experts assists banks to increase their revenue share and strengthen the market position.
and investment Our competitive performance analytics includes revenue and headcount productivity
banks across the analytics. The financial resources analytics offering includes operating cost and margin
global financial analytics, and risk-weighted assets (RWA), exposure and returns analytics. CRISIL Coalition’s
services industry. client analytics offering includes franchise revenue pools, wallet, share of wallet for institution
and corporate clients. It also includes ranking and gap for institutional clients. The country
analytics offering includes franchise revenue pools by product, market concentration and
client type, named franchise competitor revenue and country-wise client wallet analytics.

16
Annual Report 2020

Greenwich Associates
Acquired in We are a leading global provider of data, analytics and insights to the financial services
2020, Greenwich industry. We specialise in providing unique high-value data and actionable recommendations
Associates is a 100% to help our clients improve their business results. Our data focuses on the key metrics
subsidiary of CRISIL. required for effective business management: service quality, sales effectiveness, share of
wallet, market share, brand, technology, operations performance, and behavioural trends. We
operate from Stamford, Connecticut (US) with additional offices in London, Singapore, Tokyo
and Toronto.

Corporate Overview
CRISIL Research
As the leading We cover 77 sectors and work with nearly 1,200 Indian and global clients, including 90% of India’s
independent banking industry by asset base, 15 of the top 25 domestic companies by market capitalisation, all
research house, domestic mutual fund and life insurance companies, and 4 of the world’s leading consulting firms.
we are India’s most We are also the leading providers of valuation of fixed income securities to mutual funds,
credible provider insurance companies, alternative investment funds (AIFs), corporates and banks, valuing over
of economy and $1.83 trillion of Indian debt securities. We maintain over 98 standard indices in India, 13 in Sri
industry research. Lanka and 100+ customised indices. We provide due diligence and ranking services to mutual
funds and insurers. We are the sole providers of benchmarks to the three AIF categories in
India. We provide high-end customised research and tailor-made studies for many leading
Indian and global corporates across sectors. Also, with deep domain expertise built over the

Statuory Reports
years, we offer tailor-made solutions to clients for their training and skill development needs.
Our access to proprietary and public data across the economy, industries, companies and
capital markets gives us an edge in developing analytics, which can be leveraged to provide deep
and actionable insights to customers. Quantix, our comprehensive, differentiated and client-
centric data platform, offers high-end analytics and tools to empower high-quality and efficient
decision-making.

CRISIL Infrastructure Advisory

We help shape We offer a wide array of services across the infrastructure development cycle. We aid
public policy and creation of a vibrant ecosystem for infrastructure development through our work in
enable infrastructure the areas of policy and regulatory advisory, public-private partnership frameworks,

Financial Statements
development. infrastructure financing mechanisms, business / commercial diligence and strategic advice,
programme management, monitoring and evaluation, and institutional strengthening for
infrastructure agencies.
Our teams have expertise across the infrastructure sectors of urban development, energy
and natural resources, transport and logistics, and cross-sectoral expertise on infrastructure
and public finance in India and other emerging countries, mainly in Asia and Africa.

CRISIL Business Intelligence & Risk Solutions (BIRS)

We are a leading We are a leading provider of regulatory and business analytics solutions to banks and
global risk and financial institutions.
analytics solutions Leveraging our strong domain and cutting-edge offerings in the risk and analytics space, we
provider. are uniquely placed to support the evolving credit, risk and regulatory needs of the banking
and financial sector. Our unique set of offerings enables financial institutions to make
informed decisions across the verticals of corporate and investment banking, commercial
and retail banking, cards, asset management, and insurance.

17
CRISIL Limited

Reports & Publications

Global markets
Corporates look to
digital solutions as
Covid disrupts trade
finance in India
How large Indian
companies, battered by
the Covid-19 crisis, are
looking to their banks for
digital solutions to make
their supply chains more
resilient.

The hour to rejuvenate credit-risk data models

An overview of the pandemic’s impact on credit-risk data
collection and modelling with respect to the definition of
default, International Financial Reporting Standard 9 (IFRS 9)
provisioning and internal ratings-based (IRB) modelling.

Steering the IBOR transition

With just a year left for interbank
offered rate (IBOR) transition,
a look at the immediate issues
financial institutions face and the Rising to the ESG challenge: Asset managers
areas of focus to ensure that they need to upgrade operational capabilities to meet
are well placed for the transition. investor expectations
Insights into the operational gaps and insufficient
investment in environmental, social, and corporate
governance (ESG) capabilities, best-in-class ESG
practices and the steps to be taken by asset managers
to address challenges by streamlining the investment
process.

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Annual Report 2020

Indian economy
One pandemic, four Tracking financial
lockdowns conditions
States of disarray Deep dive into key
How states fared on parameters across various
economic and fiscal financial markets in India –
parameters when India equity, debt, money and forex
entered the fourth phase of markets – to understand

Corporate Overview
lockdown necessitated by the state of the economy,
the Covid-19 pandemic. the impact of policy and,
eventually, to assess the
economy’s future.

Industry & Corporates

By 2024, nearly Doing good in bad
half of new times: CRISIL CSR Year-
3-wheelers sold will book 2020
be e-autos Findings show corporates
An analysis by CRISIL in India have allocated
Research shows that a bulk of their funds to
while the second alleviating concerns

Statuory Reports
instalment of the triggered by the pandemic.
government’s policy
– Faster Adoption
and Getting Charged
Manufacturing of
Electric Vehicles in
India (FAME II) – and
numerous efficiency
and emission
regulations have Pandemic to weigh on
created the policy India Inc. credit quality
push for EVs, they will Detailed analysis on the
hit the roads slower trends in rating actions

Financial Statements
than envisaged over coupled with correlation
the next five years of macroeconomic
parameters with
systematic credit quality.

CMFR@20
2020 marked the completion of
two decades of CRISIL Mutual
Fund Ranking (CMFR) in India.
This comes at an opportune
moment – CRISIL’s estimate
shows the mutual fund
industry
can potentially top the The epicentre of an
`50 trillion assets under existential crisis
management mark by 2025. Details of the impact on
For this growth to materialise SME-dominated sectors,
and sustain, however, it is which account for nearly
imperative that independent a third of India’s GDP, and
research, as epitomised by gives space to voices
CMFR, continues to be the from the upstream and
cornerstone. downstream sectors, and
lenders.

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CRISIL Limited

Franchise Highlights
CRISIL Ratings
CRISIL Ratings participated at the CIO Dialogue with Rating Agencies organised by Institutional Investor Advisory Services
(IIAS) and the National Stock Exchange (NSE).

Gurpreet Chhatwal,
Managing Director, CRISIL
Ratings, and Raman Uberoi,
Senior Advisor, CRISIL, at the
roundtable discussion

CRISIL Ratings hosted its fifth annual seminar on the non-

banking financial companies (NBFC) sector themed around
‘NBFCs – Navigating the Pandemic’. The seminar was a part
of our unique and distinct platform, CRISIL Fin Insights, which
aims at fostering ongoing dialogues and discussions on the
developments in the domestic banking and financial space.
The seminar commenced with Ashu Suyash, MD & CEO,
CRISIL, setting the context with her opening address. This
was followed by CRISIL’s presentations across various themes
on the NBFC sector and panel discussions on overall NBFC
sector outlook; deep-dive into evolving trends in NBFCs’ asset
quality; and liquidity, fund raising and profitability at NBFCs.

CRISIL Research participated at the Threefold CVF Off

Highway event. The discussion covered industry trends,
developments and issues facing the Indian off highway
equipment markets, such as Agriculture, Industrial,
Construction, Earthmoving and Mining. Commercial
Vehicle Forum (CVF) is a unique independent platform
for conversations around issues of top concern to senior
executives across the CV industry.

Hetal Gandhi, Director, CRISIL Research, moderated the

panel discussion on Emission Standards at the Threefold
CVF Off Highway forum.

20
Annual Report 2020

CRISIL was the knowledge partner at The

Economic Times Global Business Summit.
Ashu Suyash, MD & CEO, CRISIL, shared her
views at the panel discussion on ‘Women in
Leadership – Creating Leaders for the world
of Change’.

Corporate Overview
CRISIL Ratings hosted a webinar on
‘Reinforcing Renewables’, which discussed
the outlook on capacity additions,
photovoltaic module pricing trends and
impact on tariffs, funding support for the
sector, credit view on renewable infrastructure

Statuory Reports
investment trusts (InvIT) and the overall credit
outlook over the medium term.
The eminent panellists at the webinar
comprised Ramesh Subramanyam, CFO,
Tata Power; Peeyush Mohit, COO, O2 Power;
Shailesh Kumar Mishra, Director, SECI; and
Pawan Agrawal, CFO, Azure Power.

Financial Statements
CRISIL Research
CRISIL Research was the knowledge partner at the ASSOCHAM 7th MSMEs Excellence Award & Summit. The objective was
to acknowledge the inestimable contributions made by micro, small and medium enterprises (MSMEs) to various sectors of
the economy.

Shri Nitin Gadkari, Minister of Micro, Small and Medium Hetal Gandhi, Director, CRISIL Research, inaugurating
Enterprises, Govt. of India, releasing the CRISIL ASSOCHAM the CRISIL ASSOCHAM knowledge report titled
knowledge report along with other key dignitaries at the Summit. ‘Fastening MSME Fortunes’.

21
CRISIL Limited

CRISIL Research associated with HSBC Bank as a knowledge partner to

host SME Knowledge Series – an exclusive series of eight sectoral webinars
for HSBC Bank’s SME clients.

In the webinar themed around ‘Indian

Packaged Food & Dairy Industry – Impact of
Covid-19 and Emerging opportunities’,
DK Joshi, Chief Economist, CRISIL, delivered
the keynote address where he touched upon
outlook for the Indian economy, followed by a
sectoral presentation on the post pandemic
Indian food industry titled, ‘Sweet and Sour’
by Pushan Sharma, Associate Director, CRISIL
Research. Hetal Gandhi, Director, CRISIL
Research, shared the concluding remarks at
the session.

CRISIL Research associated with the

Federation of Indian Industry (FICCI)
for their the webinar titled, ‘Impact of
Covid19 on Worldwide Steel Industry -
Challenges & Opportunities for India.’
The webinar was exclusively hosted for
FICCI members and Isha Chaudhary,
Director, CRISIL Research, delivered a
presentation on the topic ‘Demand for
Steel & Consumer Insights.’

Webinar on Impact of nCovid19 CRISIL Research hosted a webinar titled ‘Peering through the grave
on Worldwide Steel Industry: storm: India macroeconomic and corporate outlook’, which discussed
Challenges & Opportunities for India trends and outlook for the global and Indian economy along with an
outlook on India Inc’s revenue and margin. The panellists for the webinar
included Shaun Roache, Chief Asia-Pacific Economist, S&P Global Ratings;
Dharmakirti Joshi, Chief Economist, CRISIL; and Prasad Koparkar, Senior
Director, Head - Growth, Innovation & Excellence Hub CRISIL.

CRISIL & S&P jointly hosted a roundtable for senior economists. The
forum aimed to have top economists on a common platform to discuss
various aspects of domestic and global economy. Shaun Roache, APAC
Chief Economist, S&P Global Ratings, delivered a presentation on the topic
titled ‘Asia Pacific’s Recovery: Hard work begins’ where he spoke about the
Asia-Pacific Outlook.

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Annual Report 2020

CRISIL Infrastructure Advisory

CRISIL Infrastructure Advisory hosted
a webinar titled ‘RE’-infusing vigour’. In
this webinar, industry experts delved into
the impact of recent policy and market
measures announced by the Government
of India, and the measures to tide over
the pandemic, to help stakeholders gauge

Corporate Overview
the evolving situation and chart the path
forward. Vivek Sharma, Senior Director,
CRISIL Infrastructure Advisory and Pranav
Master, Director, CRISIL Infrastructure
Advisory, delivered a presentation at the
session.

CRISIL Infrastructure Advisory organised

a webinar titled ‘A grinding halt and the
grind ahead, Impact of the pandemic on

Statuory Reports
the transport sector and mitigants thereof’.
In this webinar, experts shared their views
and outlook on the impact of the pandemic
on the aviation and highways sectors.
Anshuman Chauhan, Associate Director, CRISIL
Infrastructure Advisory and Meghna Goradia
Manager, CRISIL Infrastructure Advisory
delivered a presentation.

Financial Statements
CRISIL Infrastructure Advisory participated at the, BITU-CON 2020: BITUmen and Road
Construction Industry: Virtual Conference and Expo’, organised by Federation of Indian
Chambers of Commerce & Industry (FICCI). The objective of this conference was to bring
together the leading market participants from across the bitumen and road construction
value chain to learn, explore, share experiences and build connections to find new and
potential partners.

Jagannarayan
Padmanabhan, Director
and Practice Leader -
Transport & Logistics, CRISIL
Infrastructure Advisory,
moderated the session titled,
‘Emerging Trends in Road and
Highway Construction’.

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CRISIL Limited

CRISIL Global Research & Analytics (GR&A)

CRISIL GR&A and Greenwich Associates
jointly hosted a discussion forum on
‘Globally distributed teams as a potent
BCP tool’. The webinar focused on
understanding how global banks and asset
managers have managed the pandemic-
induced crisis and how they are preparing
for an extended spell of working remotely.
CRISIL was represented by Danielle B
Tierney, Senior Advisor, Market Structure
& Technology, Greenwich Associates and
Dimitri G Londos, President and Business
Head, CRISIL GR&A.

CRISIL GR&A and Greenwich Associates

jointly hosted a discussion forum on
‘Building best-in-class ESG practices’. In
the discussion, industry experts shared
their experiences of, and insights on the
current industry wide, best-in-class ESG
integration practices across investment and
lending, challenges and the way forward.
The speakers included Sara Sikes, Principal,
Investment Management, Greenwich
Associates; Chris Perceval, Director, Head
of ESG, Business Development EMEA, S&P
Global Market Intelligence; Dimitri G Londos,
President and Business Head, GR&A, CRISIL;
and Abhik Pal, Director, GR&A, CRISIL.

CRISIL GR&A and Professional Risk Managers’ International Association (PRMIA) co-hosted a roundtable to discuss some
of the notable industry challenges surrounding the LIBOR transition. The discussion focused on key issues and alternative
solutions that are being pursued to meet the challenges around changes needed across a plethora of models impacting risk
measurement, asset-liability mismatch estimation and transfer pricing.

Kshitij Bhatia, Practice

Head, Traded Risk, CRISIL
Global Research and
Analytics was a speaker at
this event. The event was
moderated by Navin Rauniar,
Risk Advisory Partner, TCS,
PRMIA London Steering
Committee Member.

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Annual Report 2020

CRISIL held its first ‘India Investment Research Conclave’ to

celebrate the completion of 20 years of CRISIL Mutual Fund
Ranking (CMFR) and discuss the growth of wealth management
industry in the country. The event began with Ashu Suyash, MD &
CEO, CRISIL, presenting her views on the future of the capital and
mutual fund market. The event saw participation from eminent
industry leaders like Nilesh Shah, Group President & MD, Kotak
Mahindra AMC Ltd, A Balasubramanian, MD & CEO, Aditya Birla
Sun Life AMC Ltd, Sharad Mohan, Country Head, Retail Banking,

Corporate Overview
Citibank India, Karan Bhagat, Founder, MD & CEO, IIFL Wealth &
Asset Management, Nithin Kamath, Founder & CEO, Zerodha and
Manoj Nagpal, MD & CEO, Outlook Asia Capital.

CRISIL in the Media

Rahul Prithiani, Director, CRISIL Research, participated

Vivek Sharma, Senior Director, CRISIL at the ETEnergyworld Energy Transition Summit. The
Infrastructure Advisory and Pranav Master, event was a joint digital initiative of ETEnergyworld and
Director, CRISIL Infrastructure Advisory hosted CarbonCopy and comprised two discussions – future of
a webinar on ‘Re-assuring growth in times of coal in India and the way ahead for a successful integration
Covid-19’ organised by ET-Energyworld .The of renewable energy in the country’s energy basket.
webinar covered the pandemic’s impact on the

Statuory Reports
renewable energy sector and the outlook.

CRISIL was the knowledge partner for the

prestigious ET FMCG Summit and Rahul
Ashu Suyash, MD & CEO, CRISIL, participated at the Prithiani, Director, CRISIL Research, moderated
seventh SBI Banking & Economics Conclave where she two key sessions at the virtual event. The
shared her views at the panel discussion, along with Rajnish first panel discussion topic was ‘Is the Virus
Kumar, Chairman, Former SBI Chief; Dr. Randeep Guleria, Propelling Supply Chain & Distribution Models
Director, AIIMS; Ajay Piramal, Chairman Piramal Group; Sunil Reinvention in FMCG & Retail?’ The second
Kant Munjal, Chairman, Hero Enterprise; Ronojoy Dutta, CEO session was on ‘How e-Commerce Will Boost the
Interglobe Aviation. FMCG Sector Post Covid-19’.

Financial Statements
CRISIL research participated in a webinar on Ajay Srinivasan, Director, CRISIL Research, was part of a
‘Managing your debt mutual fund investments’ panel discussion organised by ET Now titled ‘Leaders of
organized by The Hindu Business Line. Piyush Tomorrow’. The discussion was hosted by Sonali Krishna,
Gupta, Director, CRISIL Research gave insights Anchor & Senior Editor at ET Now. This overarching theme of
on various categories of debt funds, what factors the discussion was the alternate financing solutions in the
drive the NAVs of debt funds and the risks stressed MSME sector.
investors must take note of while investing in
these funds. The panel discussion saw 700+
participants and was widely covered across the
Hindu Business Line publication and platforms. CRISIL participated in a webinar jointly presented
by Hindu Business Line and CFA Institute on ‘Career
Opportunities in Investment Management’. Miren
Lodha, Director, CRISIL Research, was a panelist
CRISIL Ratings participated at the third edition of at the event where he discussed multiple aspects
Corporate Bonds for Infrastructure conference organised about making a career in the field and how the time
by Indian Infrastructure magazine. Gurpreet Chhatwal, is apt to make a career in risk management. The
Managing Director, CRISIL Ratings, discussed about recent panel discussion witnessed 800+ participants
trends in bond financing for infrastructure and how has the
Covid-19 outbreak affected fund-raising activity via bonds.

25
CRISIL Limited

Employee Engagement Initiatives

Employee connect
CRISIL China organised its
annual Family Day, which saw
employees and their loved
ones bond over interactive
games and scrumptious food.

Glimpses from Family Day in Hangzhou

Team Poland’s Employee Day

celebrated diversity within
the team and showcased
the cultural traditions of
different countries.

Colleagues from the Poland office pose for a group photo

CRISILites in India took part

in virtual Diwali celebrations.
The event saw employees
participate in fun games and
share beautiful and vibrant
pictures with family members.

26
Annual Report 2020

With the pandemic forcing

unprecedented restrictions,
it has been the children that
have suffered the most.
To boost their morale and
channel their bountiful
energy, The Parent Hive, our
employee resource group for
working parents, organised

Corporate Overview
a virtual session on yoga and
mindfulness for the children.

Glimpses from the workshop

CRISILites across the globe participated in the virtual CRISIL Funtastic show with the theme ‘Decoding Happiness’.
The event also comprised of talent showcase from employees along with fun and interactive games.

Engaging employees while remote working

The company transitioned to 100% WFH across all We launched CRISIL Care, a medical assistance scheme, in

Statuory Reports
locations well before March end, and that too with partnership with Connect & Heal, for our employees. The
complete infrastructure support. In order to stay objective is to augment primary care and urgent response
connected with employees, we have hosted town halls to for employees and their families, and also to enable
share organisation-wide updates and resolve employee seamless access to medical support.
queries, 15 Covid-19 town halls were organised over a
period of 9 months. A number of wellness sessions were
also organised for our employees.

Recognising talent
The CEO Awards celebrate outstanding contributions The 11th batch of the CRISIL Certified Analyst Programme,

Financial Statements
made by employees, who have exemplified the culture of or CCAP, saw 33 associates graduate. The two-year intensive
excellence at CRISIL. In 2020, 41 employees were awarded work-cum-study programme is aimed at developing world
CEO Awards across 10 categories. class finance professionals for various analyst roles in
CRISIL and the industry.

Awards and recognition

• CRISIL was recognised as a great workplace by Great • CRISIL received the Jury Commendation certificate
Place to Work Institute (India). at the FICCI CSR 2018-19 Awards under the ‘Women
Empowerment’ category.
• Ms Ashu Suyash, MD & CEO, CRISIL featured among
Fortune India’s Most Powerful Women in Business in • CRISIL was recognised as one of the Top Employers 2020
2020. The magazine recognised her leadership qualities (Bronze category) by the India Workplace Equality Index,
that have helped CRISIL stay resilient and relevant during India’s first comprehensive index for LGBTQIA+.
these turbulent times.
• CRISIL was recognised as the ‘Most Ethical Business
• CRISIL was recognised as one of the 100 Best Group’ at Compliance 10/10 Awards.
Companies for Women in India in 2020 for the fifth time
in a row by Working Mother Media and Avtar Group. • CRISIL won the Jamnalal Bajaj Award for Fair
This award is a recognition of CRISIL’s strong focus Business Practices.
on creating an inclusive workplace, where our women
workforce is empowered, enabled and inspired to excel
in their careers.

27
CRISIL Limited

Commitment to diversity and inclusion

To celebrate International
Women’s Day, our
colleagues across the
globe shared personal
stories and experiences
online on how an ally
contributed to their
growth story and their
pursuit to create a
gender-equal world.

CRISILites strike a pose for ‘Each for Equal’ to highlight our commitment to a gender-equal workplace

CRISIL launched The Parent Hive, a new employee resource group dedicated to all
parents at CRISIL. The platform aims to provide an opportunity for parents to connect,
network as well as navigate the exciting and challenging journey of parenting.

CRISIL celebrated Global

Pride Month in June to
recognize the influence of
the LGBTQ community across
the world. CRISIL employees
across the globe participated
for the celebrations to
promote dignity, equal
rights and raised awareness
about the community and
encouraged inclusiveness.

To celebrate and increase awareness about the diversity of

cultures and ethnicities, CRISILites across the globe celebrated Diversity
Awareness Month, and shared videos about what diversity means to them.

Learning and development

• CRISIL launched Knowledge Café, a knowledge sharing • CRISIL launched Fireside Chats, an initiative that
platform for employees by employees, to promote cross allows employees to receive insights from business
business learning and collaboration among businesses. leaders through stories, anecdotes and experiences.
900 employees participated in six sessions. 1400+ employees were covered through newer
formats of learning such as Knowledge Café and Fireside
• A renowned D&I expert conducted ‘Inclusion Unplugged,’ Chat sessions.
a session on diversity and inclusive workplaces for CRISIL
Execom members. This was followed by 3 webinars and • Digital learning took a quantum leap in 2020. We saw
workshops to enhance managerial awareness of inclusive a 400% increase in the e-learning hours and a 500%
behaviour at work. Approximately 140 people managers increase in the courses completed by employees. Blended
participated in these workshops. learning formats were also introduced during the year.

28
Annual Report 2020

RE-imagining the concept of employee engagement

Aimed at keeping employees engaged
in conversations related to bio-diversity,
environment conservation, sustainability
and responsible volunteering, CRISIL
Foundation, the CSR arm of CRISIL
Limited, organised a series of virtual
knowledge sessions on environment

Corporate Overview
protection, bio-diversity conservation and
social leadership.
World Environment Day (June 5) and
World Ocean’s Day (June 8) was observed
through a series of speaker sessions
in collaboration with S&P Global India,
focusing on environment, climate change
and bio-diversity conservation.

Statuory Reports
As part of heightening the larger
social consciousness among the
employee base, CRISIL Foundation

Financial Statements
also organised a series of live virtual
interactions with over prominent social
change leaders such as Deane de
Menezes (Queen’s awardee, 30 Under
30 Forbes Asia); Anshu Gupta (Goonj);
Trishya Screwvala (The Lighthouse
Project); Shalabh Sahai (iVolunteer);
and Abhishek Dubey (Muskaan
Dreams), among others.

29
Going Beyond
in serving communities

Being good at doing good

Delivering on the social contract

Served 500,000 meals to the bottom of the pyramid

Augmenting healthcare for pandemic fight

Delivered oxygen cylinders, HFNC devices and
ventilators in 6 cities

Staying true to the green credentials

Planted 40,000 trees which helped reduce
800 MT of CO2 emissions annually

Bridging the financial literacy chasm

300,000 beneficiaries linked to formal financial
services and welfare schemes till date
Corporate
Social
Responsibility
CRISIL Limited

Corporate Social Responsibility

CRISIL recognises the growing importance and relevance of environmental,
social and governance (ESG) practices. While we are known for following
the highest standards of governance across businesses, our corporate social
responsibility (CSR) projects seek to effectively address pertinent social and
environmental issues.
Mein Pragati and CRISIL RE are two of our flagship CSR initiatives. While
the first one aims to build financial capability among the socially and
economically disadvantaged sections of the society, the second one is
focused on environment conservation.

Mein Pragati in Assam

Through regular capacity building At present, more than 590 Sakhis are
Launched in Assam in 2015,
and handholding, the Sakhi cadre is actively driving linkages and earning
CRISIL Foundation continues to
trained to drive long-term behavioural income through a service fee model
work with Rashtriya Gramin Vikas
change among rural women by easing and guided rate card for various
Nidhi (RGVN), our implementing
their access to government schemes/ banking and financial services,
partner, to empower rural
programmes and addressing last- referred to as the Basket of Services
women in six districts in the
mile constraints in accessing (BoS).
state – Barpeta, Darrang,
financial services.
Goalpara, Kamrup, Morigaon
and Nalbari. The Phase-I of the
programme empowered 1 lakh
women through multi-touchpoint
Facilitating access to Covid-19 relief package
financial literacy workshops.
The programme entered its Monowara Begum, a Mein
second phase in 2018, with a Pragati Sakhi from Darrang,
goal to strengthen, sustain and helped over 100 beneficiaries
expand the impact created in get the government’s Covid-19
Phase-I by: relief package benefit in their
• Developing a strong Jan Dhan accounts. She also
community cadre, Sakhi,
assisted 70 beneficiaries to
which will continue to support
the community in building
get benefits of Ujjwala Yojana.
financial capabilities in a Her dedication and motivation
sustainable manner to help her community
• Continuing engagement with members has truly inspired
women beneficiaries covered fellow Sakhis.
under Phase-I
• Expanding outreach to
other members in these
communities by focusing on
driving long-term behavioural
changes

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Annual Report 2020

Sakhis bring about clear and visible transformation in their communities

Sakhis have emerged as a trusted through the Sakhi cadre saves cost as as money transfers, DTH and mobile
cadre housed in the community, against taking help from other service recharge and payment of utility bills
providing doorstep delivery and proving providers and informal agents. digitally. Such engagements enhanced
to be the key channel for promoting the cadre’s relevance and trust among
During the Covid-19-induced
financial and welfare schemes. the rural population.
lockdown, Sakhis helped community
Villagers have benefitted significantly
members make transactions such
as accessing government schemes

Corporate Overview
Enabling long-term sustainability of the cadre
Over the past year, Sakhis have gained Further, the BoS of Sakhis has of the 9,383 self-help groups (SHGs)
confidence and experience, with a gradually grown to cover 70+ schemes/ have been linked to the Assam State
majority of them expanding their products/services, enabling them to Rural Livelihood Mission (ASRLM)
coverage area to adjacent villages. The attain a stable monthly income. This platform. In addition, steps are being
success of the model has also led to has ensured the cadre continues to taken to create clusters of Sakhis
further expansion into new blocks by remain relevant and sustainable in the across contiguous geographies,
on-boarding over 200 fresh members. long run. with an objective to strengthen their
As a result, the programme has grown collective decision making, giving them
To enhance the institutional
from 376 villages in the beginning of better negotiating powers to function
ecosystem and to keep the
the year to 1,143 villages. more sustainably as a financially
intervention sustainable, almost 85%
independent cadre.

Deepening Mein Pragati impact through sustainable livelihoods

Statuory Reports
In 2018, livelihood pilots on Initiatives like setting up of an Eri and business skills and leveraging
arecanut plate manufacturing, eri Resource Centre to improve overall online platforms (like Antaran Artisan
silk cultivation and handloom were cocoon production, creating low-cost Connect) for weavers have increased
initiated specific locations in Assam rearing spaces to increase quantity/ beneficiaries’ returns and stabilised
to augment household income and quality of produce, enhancing design their income over the year.
strengthen entrepreneurial skills of
Mein Pragati women. The objectives of
these initiatives were to:
• Establish a community-owned, Impact and reach as on
operated and managed arecanut December 31, 2020*
plate manufacturing unit
Assam
• Set up a community-owned,
(Barpeta, Darrang, Goalpara,
operated and managed eri silk

Financial Statements
Kamrup, Morigaon and Nalbari)
producing unit, by enhancing the
value chain; and
• Set up and link production and
Sakhi cadre
forward marketing linkages to
Active Sakhis Cumulative outreach
facilitate handloom products
These pilots, scaled up in 2019 with 596 3,58,065
help from on-ground partners such
as RGVN, Grameen Sahara and
Antaran (Tata Trusts), have gained Linkages enabled by
steady momentum through enhanced Sakhis’ Basket of Services 2,73,655
household coverage, and improved
revenue and income generation for
close to 750 households.

99,758 96,538 13,829 63,530

Financial Government Livelihoods PAN card
products/services schemes applications

* Cumulative data from September 1, 2018

33
CRISIL Limited

Mein Pragati in Rajasthan

Mein Pragati was launched in Shattering the myth that finance is a man’s domain
eastern Rajasthan (Alwar, Dausa
and Sikar) in May 2016 along Hariram Mahawar, a resident of Sundarpur
with an implementation partner, village, Lalsot, Rajasthan, had to transfer
Humana People to People India money urgently to his relative. Though he had
(HPPI). During the Phase-I from cash in hand, he did not want to go to the
May 2016 to August 2018, the crowded bank. He spotted a wall painting
programme reached out to of Mein Pragati with contact details of
over 60,000 rural women SHG Rajkumari, a Sakhi. Rajkumari, who is trained
members. on how to use digital payments and having
In August 2018, the project helped other villagers in money transfer,
entered Phase-II, implemented payment recharge and utility bill payments,
directly by CRISIL Foundation helped him transfer the amount and also
in Alwar and Dausa. The key helped him learn how to do it all by himself.
objectives of the phase are:
• Consolidating the programme
in areas with higher density Sakhis gain relevance
of Phase-I participants and
The Sakhi cadre has been During the year, Sakhis also
SHGs in order to achieve
instrumental in enhancing awareness strengthened their position by
deeper and more meaningful
about and access to banking, financial converging with key stakeholders like
intervention
services and government schemes the district administration, sponsor
• Developing a strong Sakhi
among the community. The efficacy, banks and Rajasthan Grameen
cadre who will continue to
robustness and relevance of Sakhis Aajeevika Vikas Parishad (RGAVP),
support the community in
came to the fore during the pandemic which amplified the impact of their
building financial capabilities
when 273 active Sakhis in 231 villages service to the community.
beyond 2020
provided timely help to the community
• Expanding outreach to
to access financial services.
other members in these
communities with focus on
driving long-term behavioural Impact and reach as on
changes December 31, 2020*
Rajasthan
(Alwar and Dausa)

Sakhi cadre

Active Sakhis Cumulative outreach

273 152,480
Linkages enabled by
Sakhis’ Basket of Services 24,311

10,395 6,553 2,880 4,483

Financial Government Sukanya PAN card
products/services schemes Samriddhi applications
Yojana (SSY)

* Cumulative data from September 1, 2018

34
 Annual Report 2020

MoneyWise Centres for Financial Literacy

CRISIL Foundation is the only Doorstep banking for the elderly

corporate CSR arm selected by
the Reserve Bank of India (RBI) Before the lockdown, 60-year-old
to implement its pilot Moneywise Galji from Dungarpur, Rajasthan,
Centres for Financial Literacy had completed formalities to build
(CFL) project for financial a pucca house under the Pradhan

Corporate Overview
inclusion in Maharashtra and Mantri Awas Yojana. However, he was
Haryana during 2017. In August unable to withdraw the amount from
2019, the RBI awarded CRISIL the bank due to long queues. The
Foundation, 5 additional tribal on-ground staff was from the same
blocks in Rajasthan, expanding
village and facilitated the banking correspondent’s (BC) visit to
the project’s scope to 25 centres
Galji’s residence for withdrawal. To ensure complete withdrawal,
across 3 states in partnership
with NABARD and 7 sponsor
the BC visited him three days in a row. This has just enhanced
banks. the respect for the banking system in the village.

Since their inception, the centres The hub-and-spoke approach has BLFICs are formally registered
have covered over 500,000 community enabled CRISIL Foundation to field with gram panchayats, the
members and facilitated over 105,000 test innovative structures to build a SarpanchConnect is an informal
applications for banking products supportive environment for financial engagement with the PRI structure.

Statuory Reports
and schemes. They act as hubs, inclusion: • Community cadre, largely comprising
actively supporting local banks and • Building ownership within women present in the villages and
stakeholders. They have become an panchayati raj institutions (PRI) proactively supporting the CFLs on a
integral part of the financial inclusion by forming Village-Level Financial pro-bono/voluntary basis.
eco-system over the years. A footfall Inclusion Committee (VLFIC)/
The RBI has extended the pilot project
of over 25,000 walk-ins for query Block-Level Financial Inclusion
to November 2021 and formally
resolution and handholding indicates Committee (BLFIC) in Maharashtra
announced1 its intent towards
their growing trust and acceptance and SarpanchConnect in Haryana
expanding into all blocks in the
among the community. for advocating financial awareness
country by 2024.
and inclusion. While VLFICs/

Impact and reach as on

Financial Statements
December 31, 2020*
States
(Haryana, Maharashtra and Rajasthan)

7 25 1,613 25,846
Districts Blocks Villages Walk-ins
to CFL offices

Cumulative Applications mobilised

outreach for banking services
(through (Bank accounts, social
multiple touch- security schemes,
548,080 point trainings) 109,411 digital linkages etc.)

* Cumulative data from October 1, 2017

1
Formally documented in the National Strategy for Financial Inclusion 2019-24 released by the RBI
([Link]

35
CRISIL Limited

GramShakti Certification Programme

Having established a trained Sakhi Launched in June 2018, GramShakti partnerships, thereby enhancing the
cadre in Assam and Rajasthan, CRISIL is CRISIL Foundation’s attempt to geographical coverage to 10 states.
Foundation has devised an online provide a scalable model for creating a There are currently 230 Sakhis in
learning and certification programme pan-India cadre of trained community Assam, Haryana and Maharashtra, who
called GramShakti incorporating all leaders who can effectively address have been formally certified through a
the best practices involved in training the issue of financial exclusion and convocation programme and provide
and development of Sakhis. This can empower women. support to their communities through
be accessed through a tech-based last-mile awareness and handholding.
During the year, the programme
learning application, customised in
expanded to over 1,900 end
regional languages with interactive
users across CRISIL Foundation’s
and engaging content. It comprises
intervention areas and replicated in
theory and practical assignments.
non-intervention locations through

CRISIL RE
During the year, the Foundation
CRISIL RE, CRISIL’s flagship planted 44,630 trees in five cities,
environment conservation taking the total number of trees
programme, is focused on preserving planted to over 73,000 over 2015-
oceans and forests, mitigating 20. The plantations continue to be
climate change and its impact nurtured and maintained through
through afforestation, beach post-plantation initiatives by our NGO
clean-up drives and other initiatives partners.
that positively impact “Life below
Water” and “Life on Land” – the two 2015 2017 2020

key United Nations Sustainable

Development Goals (UN SDGs).
The programmes include centrally
driven and employee-led projects,
and strive to constructively engage Visible long-term impact in environment conversation through regenerating urban forest
employees and their families, cover in Bhiwandi, Mumbai
friends and relatives in environment
conservation.

Impact and reach as on December 31, 2020 *

Trees planted Trees maintained

44,630 73,000 52,080 67,990

(in 2020) (cumulative till 2020) (in 2020) (cumulative till 2020)

Volunteers involved

1,029 10,662 60 2,399

CRISIL employees CRISIL employees Family and friends Family and friends
(in 2020) (cumulative till 2020) (in 2020) (cumulative till 2020)

* Cumulative data from 2015

36
Annual Report 2020

Covid-19 response
CRISIL Foundation responded to Despite Covid-19 having impacted
the Covid-19 pandemic through on-field activities, the on-ground staff
timely, relevant and multi-pronged and community cadre took to virtual
interventions – targeting the most ways of supporting the community
affected and vulnerable to positively thereby enhancing their relevance
impact and make a meaningful and value.
difference to over 700,000 lives

Corporate Overview
in Mumbai, Delhi NCR, Assam,
Maharashtra, Rajasthan and Haryana.

Facilitating banking and The 1Ok Meals Project

digital transactions 502,000+ freshly cooked meals to
60,000+ community members migrant workers, daily wage-earners
provided handholding support through CRISIL’s corporate kitchen in
within rural bank branches Mumbai - serving 10k meals daily for 45
and motivated to adopt digital days during lockdown.
methods of banking

Gram Sahay helpline Supporting S&P Global Foundation

Statuory Reports
166,000+ SHG women, Over 9 lakh meals and 17,000 kits
beneficiaries and community distributed to communities in Rajasthan,
supported through dedicated Foundation Mumbai and Delhi NCR - channelizing
helpline on banking information, S&P Global Foundation’s COVID-19 grant
Covid-19 relief package and to Akshay Patra Foundation and Sambhav
hygiene protocols. Foundation/ LabourNet.

COVID-19 Prevention
and Relief Strengthened health care infrastructure
248, 800+ cloth masks, through ACT GRANTS Support
and personal protective INR 50 lakh grant made to augment
gear distributed through Oxygen Therapy capacity of hospitals in
our community cadre to Mumbai, Pune, Chennai, Guwahati, Jorhat
community members and Jodhpur.

Financial Statements

37
Going Beyond
in customer experience

Dedicated microsite for insights and

publications on Covid-19 impact
Garnered well over 100,000 visits

Ratings Analytica
Mobile App for personalised intelligence on the go

Wide stream of insights

300+ knowledge sharing sessions
35% increase in publications

Virtual events dialled up 25%

Accelerated market outreach and increased
participation in events across various themes
02
Statutory
Reports
CRISIL Limited

Directors’ Report
Dear Member, equipped with a number of resources and support which
enabled them to work from a remote environment, efficiently
The Directors are pleased to present to you the 34th Annual
and effectively. Technological applications and processes
Report of CRISIL Limited, along with the audited financial
were further significantly upgraded so that client and internal
statements, for the year ended December 31, 2020.
deliverables could be executed in a timely manner. Over 99%
2020 was an unprecedented year, with the Covid-19 of the workforce was tech-enabled to work from home and
pandemic affecting countries, businesses and individuals continued to fulfill all client deliveries and assignments
across the world. Lockdown and restrictions imposed on within agreed timelines through the pandemic.
various activities due to the pandemic called for extraordinary
Consequently, your Company remained fully operational and
changes in the way operations were managed at the Company.
continued to function seamlessly, serving clients and meeting
Our technological investments, multi-country presence,
the needs of stakeholders through these months.
analytical nature of offerings, and timely and decisive steps
towards remote working ensured full business continuity even The Company and its employees also extended whole-
as the pandemic unfolded across locations of our presence. hearted support to vulnerable sections of society during this
period in a number of ways. This included: providing over
The Company responded swiftly to the initial outbreak
502,000 freshly cooked meals from CRISIL’s corporate kitchen
reported in China, where we have operations and activated a
for migrant workers and daily wage-earners and a Rs 50
task force of senior management, risk and business continuity
lakh grant to augment oxygen therapy capacity of hospitals
specialists to assess the impact of Covid-19 on operations
in Mumbai, Pune and Chennai. More details of the Covid-19
as it spread from country to country. Keeping a people-first
relief work is covered in the Corporate Social Responsibility
approach, proactive work from home was initiated for all
Report.
employees by mid-March 2020. Employees at CRISIL were

Financial Performance
A summary of the Company’s financial performance in 2020:
(Rupees in crore)
Consolidated Standalone
Particulars
2020 2019 2020 2019
Total income 2,064.98 1,804.56 992.73 968.82
Profit before interest, depreciation, exceptional items and taxes 593.79 528.68 290.95 221.14
Finance cost 14.39 0.23 6.94 -
Deducting depreciation of 121.11 36.86 65.68 23.96
Profit before tax 458.29 491.59 218.33 197.18
Deducting taxes of 103.56 147.64 51.61 61.67
Profit after tax from continuing operations 354.73 343.95 166.72 135.51
Profit after tax from discontinuing operations 0 0 0 130.78
Profit after tax 354.73 343.95 166.72 266.29
Other comprehensive income (8.85) (87.75) (28.91) (95.94)
Total other comprehensive income 345.88 256.20 137.81 170.35
Appropriations
Final dividend 101.63** 94.22* 101.63** 94.22*
Interim dividend 137.81 137.35 137.81 137.35
Corporate dividend tax 0 34.89 0 34.89
**Final dividend for 2020: Rs 14 per equity share of Re 1 each
*Final dividend for 2019: Rs 13 per equity share of Re 1 each

The financial statements for the year ended December 31, 2020 have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of
Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act. There are no material departures from the prescribed
norms stipulated by the accounting standards in preparation of the annual accounts. Accounting policies have been consistently
applied, except where a newly issued accounting standard, if initially adopted or a revision to an existing accounting standard

40
Annual Report 2020

required a change in the accounting policy hitherto in 774.40 crore as against Rs 771.64 crore in the previous
use. Management evaluates all recently issued or revised year. Profit before tax was Rs 218.33 crore as against Rs
accounting standards on an ongoing basis. The Company 197.18 crore in the previous year. Profit after tax was Rs
discloses consolidated and standalone financial results on 166.72 crore as against Rs 135.51 crore in the previous
a quarterly basis, which are subject to limited review and year.
publishes consolidated and standalone audited financial
A detailed analysis of the Company’s performance,
results on an annual basis.
consolidated and standalone, is included in the Management
a) Consolidated operations Discussion and Analysis Report, which forms part of the

Corporate Overview
Annual Report.
Revenue from the Company’s consolidated operations
for 2020 was Rs 2,064.98 crore, 14.4% higher as against
Rs 1,804.56 crore in the previous year. Overall expenses Dividend
were Rs 1,606.69 crore as against Rs 1,312.97 crore in
The Directors recommend for approval of the members at
the previous year. Profit before tax was Rs 458.29 crore as
the Annual General Meeting to be held on April 20, 2021,
against Rs 491.59 crore in the previous year. Profit after
payment of final dividend of Rs 14 per equity share of face
tax was Rs 354.73 crore as against Rs 343.95 crore in the
value of Re 1 each, for the year under review. During the year,
previous year.
the Company paid three interim dividends; first and second
b) Standalone operations interim dividends of Rs 6 each and third interim dividend of
Rs 7 per equity share. The total dividend will be Rs 33 per
Revenue from the Company’s standalone operations
share in 2020 as against a total dividend of Rs 32 per share
for 2020 was Rs 992.73 crore, compared with Rs 968.82
in the previous year.
crore in the previous year. Overall expenses were Rs

Statuory Reports
Increase in issued, subscribed and paid-up equity share capital
During the year, the Company issued and allotted 288,964 equity shares to eligible employees on exercise of options granted
under the Employee Stock Option Schemes of the Company. At the end of the year, CRISIL’s issued, subscribed and paid-up
capital was 7,25,93,290 equity shares of Re 1 each.
The movement of share capital during the year was:

Particulars No. of shares Cumulative outstanding

allotted capital (no. of shares with
face value of Re 1 each)
Capital at the beginning of the year, i.e., as on January 1, 2020 - 7,23,04,326
Allotment of shares to employees on February 11, 2020, pursuant to 169,136 7,24,73,462
exercise of options granted under Employee Stock Option Scheme, 2012

Financial Statements
and Employee Stock Option Scheme, 2014

Allotment of shares to employees on May 6, 2020, pursuant to exercise of 24,796 7,24,98,258

options granted under Employee Stock Option Scheme, 2014
Allotment of shares to employees on July 21, 2020, pursuant to exercise 22,227 7,25,20,485
of options granted under Employee Stock Option Scheme, 2014
Allotment of shares to employees on October 20, 2020, pursuant to 72,805 7,25,93,290
exercise of options granted under Employee Stock Option Scheme, 2014
Capital at the end of the year, i.e., as on December 31, 2020 - 7,25,93,290

Segment-wise results
The Company has identified three business segments in line with the Indian Accounting Standard on Operating Segment (Ind
AS-108), which comprise: (i) Ratings, (ii) Research and (iii) Advisory. The audited financial results of these segments are provided
as part of the financial statements.

41
CRISIL Limited

Review of operations Operations

A. Ratings New client acquisitions and strong existing relationships

strengthened the Company’s market leadership in 2020.
Highlights
We also on-boarded over 140 new large corporate clients.
• Announced over 1,200 new bank-loan ratings (BLRs) in
Given the volatile economic environment, we further raised
2020; total BLRs outstanding exceeded 8,000
the intensity and quality of surveillance to minimise credit
• Rated seven covered bonds which were used by Non- cliffs which helped in maintaining quality of rating across the
Banking Financial Companies (NBFCs) as an alternative rated portfolio.
and innovative fund raising source this year
On the innovation front, the Company continued to be the first
• Strengthened leadership position in the corporate bond port of call for innovative instruments even in the muted bond
market, backed by preference for quality ratings among market. In 2020, CRISIL Ratings assigned a rating to the first
both investors and issuers dealer securitisation transaction in India and seven covered
bond transactions.
• Continued strong focus on analytical rigour ensuring best
in class ratings quality The Company maintained its multifaceted approach towards
stakeholder relationship management. To strengthen our
• Gained franchise leadership through publishing high
engagement with issuers and investors, we extensively
impact opinion pieces and conducting incisive webinars
engaged with their senior management, delivered sectoral
Business Environment presentations and leveraged the digital channel to share our
thought leadership reports, periodical publications, videos
Corporate bond issuances were tepid in 2020 and declined by
and podcasts regularly.
~8%. Issuances were concentrated among ‘AAA’ rated issuers
and those with strong parentage. As a part of the Company’s continuing improvement initiatives,
we completed the development of a new technology-based
The Covid-19 pandemic and resultant lockdown had led to an
workflow platform for the ratings’ operations. We also
unprecedented disruption in demand and supply and general
launched Ratings Analytica, a web portal and a mobile app,
business activity. Private sector capital expenditure and
which was well-received by the issuers and investors.
consequent demand for credit were muted and wholesale
domestic bank credit growth was around 3% for 9 months With interest of investors as a prime concern in a challenging
ended December 31, 2020. Besides sluggish demand for credit environment, we sharply enhanced our communication
wholesale bank credit, the BLR market was affected by the with investors and market participants at large through our
guidance from five large banks, increasing the minimum reports, press releases and webinars.
exposure threshold for rating requirement to Rs 30-50 crore
To navigate the volatile environment, external stakeholders
from Rs 5-10 crore.
were seeking credible opinion on credit risk related aspects.
Securitisation volume was highly muted from March, when To cater to this need, we sharply enhanced franchise
the lockdown and moratorium were announced, as a result of activities and published more than 100 highly incisive opinion
which collections from borrowers fell sharply. While there are pieces across industries, which were very well received by the
signs of green shoots with pick-up in economic activity and external stakeholders.
improvement in collections across asset classes, lenders and
Furthermore, the Company hosted its annual flagship event on
investors are gradually returning to the market.
non-banking financial companies (NBFCs), a virtual seminar
In a challenging credit environment, we witnessed this year titled ‘NBFCs – Navigating the Pandemic’, providing
continuation of the phenomenon of flight to quality – issuers business leaders, issuers, investors, policymakers and other
as well as investors/lenders continued to prefer working with market participants a platform to deliberate and exchange
quality-focused Credit Rating Agencies (CRAs), like CRISIL. perspectives on issues relevant to the sector. We strengthened
our market presence by hosting 30 web conferences on trending
On the regulatory front, Securities and Exchange Board of
topics and sectors of interest to investors, that included trends
India (SEBI) announced certain changes aimed to address
in rating actions (‘Ratings Round Up’) and credit outlook,
issue of issuer-non-cooperation with CRAs at the beginning
infrastructure investment trusts (InvITs) and Real Estate
of the year. CRAs are required to downgrade investment-
Investment Trusts (REITs), agrochemicals sector among others.
grade ratings with issuer-not-cooperating (INC) to non-
investment grade after 6 months and to not assign any new We also continued to work with regulators to put forth our
ratings to issuers who have INC ratings outstanding for more opinions on rating standards and governance policies for the
than 12 months with other CRAs. credit rating industry.
Post March 2020, regulatory changes were aimed at Given the continuing and evolving nature of the pandemic
providing regulatory forbearance to corporates affected situation, the Company continues to monitor changes in
by the pandemic and lockdown. SEBI granted temporary economic conditions and their impact on credit profiles of
relaxations from default recognition and regulatory timelines rated entities.
for publication of rating rationale, among others.

42
Annual Report 2020

The Company continues to maintain strong client connect things to a standstill during its initial phase. However, it did
virtually, along with regular communication with all not take long for banks to settle down and adapt to the new
stakeholders. normal. In addition, the changing regulatory environment
especially across Europe and Australia set the tone for the
The Global Analytical Centre (GAC) enhanced its support to
year with its implications for regulatory deadlines, policy
SPGRS on surveillance activities. It also initiated support on
transformation and cost control.
environmental, social and governance (ESG) diagnostics and
evaluations, and led automation and process transformation The business closed big opportunities related to stress
initiatives in the data, analytical and risk and compliance testing, model validation and a large IBOR transition deal. The

Corporate Overview
domains. GAC also continued to partner in market-outreach business continues its productisation agenda with Model
efforts and content creation for publications. Infinity and Scenario Expansion Manager, both currently
under implementation in different clients in the US and
With the increasing focus on automation and optimisation,
Europe and on track for successful go-lives in the fourth
GAC stepped up its efforts on process improvement and
quarter. The business sentiment in the Model Risk space
automation by leveraging new age technologies including
is also buoyed by the increasing number of conversations
machine learning and use of Data Sciences. Additionally,
around market risk and credit risk modeling with European
with the environmental, social and governance (ESG) offering
regulators increasing the pressure on banks regarding their
becoming an area of increasing priority, GAC has also
internal models.
strengthened its capabilities in the domain.
The business continued to tap into opportunities generated by
With focus on strengthening the first line of defence, a number
regulatory guidelines around better credit risk management
of initiatives were taken to strengthen the controls framework.
practices. The pace of conversations continue to be slower
Adoption of lean management tools, work standardisation
than usual owing to concerns around the pandemic. However,
and process modernisation initiatives facilitated consistent
we expect opportunities opening up in the coming months
support across diverse geographies and asset classes.

Statuory Reports
at a faster pace with the credit risk transformation agendas
B. Research gaining momentum.
B.1. Global Research & Analytics (GR&A) The key focus areas for banks are enterprise risk management
optimisation, regulatory compliance simplification, business
Highlights
process transformation and conduct risk management. The
• Expanded our client base and geographical footprint business has developed a strong point of value for each of
across key global markets and service lines these pillars with a value chain approach for delivery including
relevant partnerships. The business is also enhancing the
• Secured key wins and strategic renewals across
financial crime and compliance offerings to scale it up to
risk technology, FO/MO (front office/middle office)
client needs and productise with better enhancements.
transformation, IBOR (interbank offered rate) transition,
stress testing and Basel III The business successfully closed multiple large renewals
and is actively pursuing more business opportunities across
• Gained momentum in credit risk with several new

Financial Statements
risk and finance transformation. Immediate areas of focus
deals globally. Focused on supporting banks across
for the core client base include IBOR transition and front
credit transformation projects through credit workflow
office transformation to deliver pricing and risk consistency
automation tools and industry utilities
required under the Basel IV processes. European banks are
• Made significant progress in two pilot products – expected to significantly invest in these areas now while US
Scenario Expansion Manager (SEM) and Low Default banks have already taken the lead here.
Portfolios (LDP). Secured first high-value deal with a
Market risk continues to grab the mindshare at top
Netherlands-based bank
investment banks during the pandemic, leading to key
• Continued effort on conceiving and developing solutions regulatory and transformation agendas such as DoD
in the data analytics and automation segments to support (Definition of Default), FRTB (Fundamental Review of the
asset managers and banks with ESG (Environmental, Trading Book), Basel III, CCAR (Comprehensive Capital
Social and Governance) solutions Analysis and Review 2021) being increasingly discussed
• Developed relevant partnerships to augment our in bank boardrooms. The demand for risk technology and
offerings in the risk domain and support the end-to-end front office transformation is expected to rise with banks
customer value chain rushing to update their trading infrastructure to meet regulatory
obligations. However, the delayed start of the regulatory stress
• Developed a new product focusing on financial crime and testing examinations with inclusion of new risks, pandemic,
compliance (FCC) research, currently being piloted with a climate risk, etc. and emerging needs to calibrate models
new logo in Europe factoring in the impact of the pandemic have proven to be key
Business environment catalysts for SEM and LDP, the pilot products.

The market environment in 2020 was dominated by the On the buy-side, the pandemic continued to accelerate
adverse impact of the Covid-19 pandemic which brought demand for research in riskier assets such as distressed and
private debt. We continue to see demand for emerging market,
43
CRISIL Limited

credit research, alternative investments, ESG missing data • Continued to maintain a dominant position in the Funds and
and enhanced due diligence for ESG red flags. The trend of Fixed Income Research business due to significant traction
new hedge fund launches continues, with a preliminary need in valuations for Provident Fund (PF), treasury portfolios
beginning to form for research and non-research support and existing Market Linked Debentures (MLDs) issuances
from wealth managers.
• Remained the largest provider of fixed income indices in
Operations India and consolidated our position by launching two new
indices in 2020, taking the total count to 98
Client connect remains strong as we actively reach out to
clients on credit risk automation solutions (including funds • Enhanced the depth of company coverage on Quantix, our
automation, covenant monitoring, EWS/NNA (Early Warning comprehensive, differentiated and client-centric data
System/Negative News Analytics), ESG and data analytics platform, by adding new data points such as security/
(DA), which remain key focus areas for many in the current collateral charges, shareholding pattern, contingent
scenario. Clients are using ESG to differentiate themselves in liabilities and auditor qualifications, to name a few
this highly competitive market. Following up from a webinar
• Complemented the existing Financial Sensitivity Model
for developed markets, we recently conducted an ESG
(FSM) based on fundamental and equity price data with
webinar focused on the Asia Pacific, which garnered strong
addition of yield spreads data
interest, attracting over 150 attendees.
• Enriched Alphatrax, the wealth tracking solution, with six
Non-financial risk services are being well received by clients
new reports and addition of two key asset classes – AIF
across geographies. There is an increased demand for
and PMS – to go with existing direct equity, direct debt
business process management transformation, operational
and mutual funds. The UI/UX of the platform is also being
risk management, financial crime and compliance research
enhanced to suit client needs
and regulatory remediation across various geographies/
businesses. • Seamlessly transitioned from traditional classroom
training programmes to virtual training sessions in the
There’s a substantial focus towards AI (artificial intelligence),
wake of the pandemic, ensuring no disruption in clients’
ML (machine learning), automation and data engineering across
learning agenda
various functional areas within the risk business, from MRM
(Model Risk Management), trading and quantitative strategies to • Developed a new Financial Conditions Index (FCI) to
front office and middle office operations. Utilities, accelerators regularly assess the state of domestic financial conditions.
and products will play a big role in making the risk business CRISIL’s FCI is a monthly tracker that combines key
future-ready, act as differentiators and help strengthen the parameters across equity, debt, money and forex markets
value proposition and price-making capability. The business is in India, along with banking and policy conditions. This index
strategically investing in capacity and capability building across has been instrumental in assessing the impact of RBI’s
these technologies to stay relevant and critical to our customer unprecedented policy measures this year and how far they
strategy. got transmitted to the broader economy

Significant progress was made with the Low Default Portfolios Business environment
(LDP) data pooling solution, strong data coverage across 60+
2020 turned out to be one of the most eventful years of the
countries. There is continued focus on building industry-
decade, with changing market trends and business dynamics
led product pipeline. It advanced with two new products, a
due to Covid-19 that posed a major challenge for the India
Model Risk Benchmarking+ study and a scenario sharing
Research business.
proposition, climate risk and other utility hypotheses are
under consideration. We launched aggressive go-to-market While we continued to maintain our dominant position in the
campaigns driven by global roundtables for pilot and new flagship Industry Research business, the segment continued
products and conducted an active dialogue with 25+ banks to face growth challenges as an after-effect of public sector
globally. Additionally, we leveraged cross-business capabilities bank mergers and difficulties a few key private sector banks
and external synergistic partnership opportunities to gain and non-banking financial companies (NBFCs) faced.
ecosystem advantages across products. These created The Funds and Fixed income segment stood out this year amid
significant adjacency benefits for GR&A as a whole and brand a plethora of regulatory changes and increased competition.
awareness and visibility through digital platforms. With insurance companies and pension funds emphasising
B.2. India Research more on process and portfolio reviews and the need for
valuations of MLDs expanding beyond regulatory compliance
Highlights
to risk monitoring and investor-mandated requirements, this
• Successfully launched benchmark indices for the vertical remains one of our key bets for the future.
domestic Alternative Investment Fund (AIF) industry
We enhanced focus on agility and innovation. The launch
• Launched a high-frequency dashboard providing deep of CRISIL AIF Benchmarks was, thus, a fructification of our
insights into markets, commodities and various sectors continuous efforts to provide relevant products as per market
impacted by Covid-19 needs.

44
Annual Report 2020

Increase in demand for analytics platforms with capabilities published 21 byline articles and made 16 client presentations
of feeds, alternative data and automated delivery and wealth on various sectoral and economic issues.
management research augurs well for our data and analytics
Year 2020 was a milestone for our business in terms of client
solution offerings.
connects through knowledge sharing sessions, webinars and
With clients restricting discretionary expenditure and their franchise. We were able to leverage technology to ensure
decision making cycles and execution of existing mandates multiple client connects and reinforced our credentials as a
seeing negative impacts, our Customised Research and knowledge-based organisation for our clients to look up to
Learning Solutions businesses were the worst-hit due to the during challenging events that transcend business cycles.

Corporate Overview
pandemic. However, with all client segments stressing on Our teams have conducted over 300 knowledge sharing
strategic review in the wake of the pandemic, we successfully sessions since the lockdown in March. These sessions saw
came up with innovative products in keeping with our attendance of 5,000 clients across various sectors.
customers’ requirements.
This year, we hosted the first edition of ‘India Investment
Operations Research Conclave’ to celebrate the completion of 20 years
of CRISIL’s Mutual Fund Ranking (CMFR), which was attended
In wake of the pandemic, we ensured business continuity
by over 300 senior and mid-level stakeholders representing
through seamless operations across all our deliveries and
200+ organisations across asset management companies,
maintained high quality standards.
wealth management firms, insurance companies, treasuries,
We also augmented our offerings and launched new products banks & nbfcs and Fintech’s. The event also saw the launch
during this period. Our Customised Research team launched of special compendium titled ‘CMFR@20 - Independent
micro-level assessments/dashboards for various segments research remains cornerstone of mutual fund industry’s
such as passenger vehicles (PVs), light commercial vehicles growth’ as well as a CXO Panel discussion on the key growth
(LCVs), tractors, MSMEs, housing finance and personal drivers for the future of the industry (with emphasis on the
loans. These have garnered interest among clients looking

Statuory Reports
role of data research, market intelligence and analytics and
to recalibrate business strategies, plans and policies due the changing dynamics of intermediation) which was widely
to the pandemic. The Learning Solutions team launched 50 appreciated.
unique virtual training titles this year that helped overcome
S&P CRISIL Economist Forum, shared our opinions with the
the challenges traditional classroom trainings face. The
larger market through 68 external speaking engagements,
state-of-the-art Learning Management System (LMS portal)
hosted 30 webinars on extremely topical themes and
continues to provide complete e-learning solutions, enabling
published several high-impact opinion pieces and media
our client user base to leverage our expertise in credit and risk
releases on a regular basis, an all-time high for the business.
management from remote locations. We also launched CRISIL
Wealth Manager Certification which saw good participation B.3. CRISIL Coalition
from retail clients. The Industry Research team launched a
Highlights
high-frequency Covid-19 dashboard – a one-stop solution to
all data and trends emerging due to the pandemic. • Added two new logos to its impressive list of global
investment banks

Financial Statements
Quantix, our comprehensive, differentiated and client -centric
data platform, improved its value proposition by enhancing • Deepened existing relationships in a challenging
both data coverage and strengthening the power of analytics environment characterised by the pandemic, market
on top of the largest company database in the country. Key data volatility, increased competition and cost optimisation
points from the company filings, such as collateral charges,
• Extended outreach by presenting analysis and insights
shareholding pattern, auditor qualifications, statutory dues,
to leadership teams across banks, including the heads
contingent liabilities, etc., were added on Quantix to make
of corporate investment banking (CIB), global markets,
the coverage comprehensive. The fundamental financial data
investment banking and transaction banking and
and equity share price-based model, FSM that gives an early
presenting at 150+ ExCo forums
warning for a rating action, was strengthened by ingestion of
yield spreads data signals. • Continued automation agenda across all offerings

Alphatrax was enhanced with six new reports and adding AIF • Referenced in 250+ articles across 55+ global
and PMS over and above the existing direct equity, direct debt publications and in 110+ investor relations presentations
and mutual fund coverage. We are also working on upgrading made by leading global banks
the UI/UX of the platform to improve the user experience, Business environment
which will be launched early next year.
The year 2020 proved to be a very interesting one for global
Further, the CRISIL Centre for Economic Research (C-CER) investment banks. After a slow start, there was a surge in
and CRISIL Research business continued to focus on various trading revenues in the second quarter with the world reacting
franchise and thought-leadership activities by conducting to the pandemic. This continued to generate strong flows into
distinctive studies and generating reports on contemporary the third quarter and parts of the fourth. However, this was
issues. We released 15 high-impact thematic reports, offset by a collapse in interest rates, lowering revenues in

45
CRISIL Limited

lending- and margin-related products. For the top 12 banks • Created new, first-of-their-kind insights for the fixed
(Coalition Index), revenue increased ~15% in CIB. For the income clients by combining Coalition and Greenwich
broader industry (Coalition Pools), there was a 8% rise in data to highlight addressable wallet gaps
revenue in 2020, driven by a ~40% increase in fixed income,
• Enhanced value proposition to clients by beginning to
~20% in Investment Banking Division (IBD), ~10% increase in
shift from annual interviews to year-round, continuous
equities results. This was offset by decreases of ~10% across
interviewing for flagship Voice of the Customer products
transaction banking, securities services and lending. FICC
and IBD ended up the best full year results in over a decade. • Continued to invest in new data and analytics products
across all lines of business
However, the sizeable increase in revenue has not improved
the bottom line. The pandemic led to a substantial increase • Referenced in over 250+ articles across 50 global
in provisions and costs (+10%) for the Index banks as they publications
grappled with the fallout.
Business environment
CRISIL Coalition faced a clientele who witnessed many ups
Many financial service firms experienced a difficult
and downs through the year but turned highly risk and cost
business environment in 2020 due to the impact of Covid-19.
conscious towards the second half. We continue to strive and
Commercial banks contending with serious credit-related
differentiate ourselves on innovation and agility.
issues tightly managed expenses. The asset management
Operations industry remained volatile throughout the year, consistently
under fee pressure and reducing spends.
CRISIL Coalition continued initiatives to enhance market
relevance and broaden reach to include more regional Amid these conditions, we faced many Covid-19-related
players. In 2020, CRISIL Coalition added two new logos to its challenges that impacted the buying behaviour of Greenwich
impressive list of global investment banks. New and more clients and our ability to access senior buyside executives for
granular IP was developed to cater to new clients such as data collection.
regional banks.
Nevertheless, we continued to evolve and transform our
CRISIL Coalition reinforced its leadership with the top 15 business to better meet our clients’ near- and long-term
banks by meeting most of the heads of CIBs and all heads of needs for data and insights. Despite Covid-19 headwinds, we
Global Markets/Investment Banking businesses, in addition continue to serve nearly all of the world’s leading financial
to presenting to 150+ executive committees at various banks. service and financial technology companies. The pandemic-
More than 55 publications globally carried our views and quoted related volatility has accelerated digital adaption and is
us during the year. We were referenced by leading global banks transforming relationships between sellers and buyers
in 110+ investor relations presentations. Additionally, CRISIL of financial services. The changing dynamics are creating
Coalition participated in ‘The Banker: Transaction Banking opportunities for benchmarks in the ‘new’ environment and
Awards 2020, webinar as one of the four panelists. for new types of analytics.

On the operations side we continued focus on automation Operations

and digitisation. The first stages of a multi-year roadmap to
In 2020, we made aggressive changes to transform our
digitise CRISIL Coalition’s core operational processes and offer
operating model and position our business for revenue
deeper integration with banks’ systems have been completed.
growth—including important steps leveraging the combined
This will enable better data discovery and enhanced analytics
capabilities of the newly integrated Greenwich Associates/
for our customers. The foundational work addresses data
Coalition platform.
ingestion and data processing and will improve the speed to
market of our Client Intelligence product, as well as providing We enhanced the timeliness and quality of our core data by
a strong base to deliver enhanced customer value over 2021 re-tooling our Voice of the Customer (VOC) programmes. By
and beyond. CRISIL Coalition retained the coveted SSAE16 beginning to shift from our legacy model of annual interviews
SOC2 Type II certification, which is a testimony of the stringent to year-round, continuous interviewing, we are in closer
controls and measures deployed for data and IP protection. alignment with our clients’ data needs and will significantly
strengthen the value proposition of Client Intelligence
B.4. Greenwich Associates
products in FICC, Equities, FX, Credit, Cash Management and
Highlights Trade Services.

• Deepened relationships with clients by providing critical We made several changes to position the business for future
market insights during the Covid-19 pandemic relating to growth. We increased our focus on high-growth opportunities
changing behaviour and spending dynamics by boosting resource commitments to VOC products identified
as having the highest growth potential.
• Integration of Greenwich business completed
We also continued to develop new and enhanced products.

46
Annual Report 2020

C. Advisory The business deepened its international presence by

winning mandates in the emerging markets of Asia and
C.1. CRISIL Infrastructure Advisory
Africa, including transaction advisor for Logistics Hub
Highlights under the Public-private partnership (PPP); industrial park
development and land value capture study; review of water
• Adapted to new reality and challenges posed by the
related legislation and full assessment of establishment
pandemic with minimal disruption to mandate delivery
of independent water regulatory authority and electricity
requirements
data baseline study. The business will continue to focus on
• Maintained strong senior-level connect with policy international opportunities going forward as well.

Corporate Overview
makers, multilaterals and infrastructure players
The business was able to model the impact of Covid-19 on
• Improved diversification through increased revenue few critical sectors such as aviation, railways and power
share from international markets with continuous connect with the policy makers and other
key market participants. We hosted a number of webinars
• Debtor ageing saw an impact mainly with city/state
like Impact of Covid-19 on aviation sector; Reassuring
government clients due to lockdown
growth in times of Covid-19; Rebooting the ‘Lifeline’ - Way
Business environment forward for Railways post Covid-19; PPP in healthcare and
The year 2020 has been muted for the Infrastructure Covid-19 - Experiences from India, Abu Dhabi and the rest
Advisory business because of the pandemic that led to a of the world.
slowdown in new investments in the infrastructure sector. C.2. CRISIL Business Intelligence & Risk Solutions
While we continued to maintain a leadership position in
Highlights
advising various client segments, the Government segment
faced some growth challenges during the year because • Successfully delivered ongoing client mandates despite
of lockdown extension and reprioritising of some of the

Statuory Reports
remote working for three quarters of the year
new programmes/schemes. On the international front, we
• Continued to strengthen and consolidate our position
saw robust growth with increased share of new business
as a leading provider of internal credit rating platform,
from emerging economies. Some infrastructure sectors
driven by enhanced RAM solution (ICON) – launched in
were hit significantly in India and greenfield projects were
late 2019. The new platform continues to find traction in
suspended as a fallout of the pandemic. Sectors such as
the Indian financial sector
aviation, ports and tourism bore the brunt of the lockdown,
leading to muted private investments. Major initiative was • Witnessed heightened interest amongst clients in India
the operationalisation of the first gas exchange earlier this for our enhanced Early Warning Signals (EWS) solution –
year as well as announcement of privatisation of power integrating external data to generate robust automated
distribution entities in union territories, which is likely to triggers
be concluded in the first half of 2021.
• Saw good traction for the regulatory solution practice
With contraction in the overall economy in India, availability (mainly ADF solution) with automated reporting being

Financial Statements
of capital will remain scarce for the next couple of quarters pushed by the Reserve Bank of India (RBI)
and the focus will be on asset monetisation across all
Business environment
infrastructure sectors and greater thrust of divestment in
public sector units. This will help bring in the much-needed The year 2020 has been eventful for the entire banking and
private capital and provide a certain level of cushion to the financial sector under a stressed credit environment and
authorities in augmenting resources. We see this as a central increasing regulatory focus. The industry bore the impact
theme for the next couple of quarters and are completely of the Covid-19 pandemic apart from consolidation through
aligned with it. large scale mergers and continued crisis in certain large
private sector banks, NBFCs and co-operative banks. The
Operations
increased stress in portfolios and cost pressures impacted
Despite the slowdown in the economy due to the pandemic, discretionary spends on projects and capital investments.
Advisory business was able to contract higher business However, towards the end of the year, the business saw
than the previous year. The business booked several renewed interest from clients, mainly in credit risk and
new assignments, especially in the second half of the regulatory reporting solutions.
year, largely driven by international mandates, extension
Business in the Middle East region remained muted given the
mandates from existing India-based clients and some
cautious approach from clients to invest in long-term projects
specific opportunities around commercial coal mining. The
in light of the pandemic and related challenges.
business won some large-value mandates over the course
of the year - All India study on sectoral demand of petrol and We continued to augment existing offerings with
diesel for oil marketing companies; support for commercial functionalities and build product roadmaps aligning to
coal block auctions; feasibility and operationalisation of gas emerging market needs. The focus continues on deepening
exchange/platform; and market assessment on key sectors client engagements and increasing global outreach.
for MSMEs for an international financial institution.

47
CRISIL Limited

Operations Furthermore, an employee from CRISIL Research was one of

the panelists on ‘India: Production and exports outlook for
Given the rapid pace of technology development, the focus
2020-21’ at S&P Platts’ Asian Sugarcane & Biofuels Virtual
of the business is on continuous product innovation and
Conference.
remaining agile to serve our clients better. ICON, the new-
age RAM solution launched last year, gained traction with E. Human Resources
multiple implementations during the year. The business also
The Human Resources team took several strong steps in
embarked on a roadmap for further product enhancement
2020. At the close of 2020, CRISIL’s headcount was 3,670
with new modules and configurability features, strengthening
including all wholly owned subsidiaries.
the product’s acceptability among clients.
Diversity and inclusion
We continue to increasingly invest in our proprietary big
data, cloud-ready platform, Fulkrum, to provide business An organisation performs best when it has people from
intelligence solutions and bespoke analytics in a more different backgrounds working together in an inclusive
effective and efficient manner. This is important as the environment; where different thoughts, perspectives
evolving landscape is pushing banks to accelerate their move and ideas are welcomed. Collaborating different thought
to cloud-based solutions vis-à-vis traditional on-premise processes and building a culture of inclusivity are fundamental
business applications. to CRISIL. Celebrating each other and partnering with
different stakeholders are crucial in driving the organisation’s
D. Collaboration with S&P Global
profitability. In 2020, CRISIL undertook several initiatives and
CRISIL’s association with S&P Global helps blend local programmes to encourage diversity, which have enhanced
and global perspectives in shaping CRISIL’s strategy and employee awareness and encouraged reflection on racism,
governance systems. Representatives from S&P Global empathy, gender, transgender & LGBTQ needs, and cultural
bring value to the CRISIL Board through global insights on sensitivity. CRISIL was named in the 100 Best Companies for
governance, risk and controls and experience in leading Women in India for the fifth consecutive year by Avtar Group
large businesses. CRISIL has opportunities to leverage the in October 2020, which is testimony to our efforts
S&P Global brand through referrals and partnerships in the
Employee well-being
international market. Regular interface between Management
teams leads to knowledge sharing and cross fertilisation Our employees are our most significant assets. Their health,
of ideas. At the same time, commercial opportunities are safety, and well-being are our topmost priorities. Since the onset
pursued on arm’s length basis. of the pandemic, we have redefined our healthcare benefits,
added new practices and programmes, encouraged employees
In 2020, CRISIL continued to enhance its thought leadership
and their families to avail Employee Assistance Programme
agenda and deepened its outreach engagement with S&P
(EAP) and introduced CRISIL Care (a medical assistance scheme
Global.
in partnership with Connect & Heal) as a one-stop emergency
As part of the outreach initiative, S&P Global and CRISIL jointly health response programme with focus on Covid-19.
hosted a virtual roundtable for top economists to discuss
Employee engagement
various hot-button issues with regard to the domestic and
global economy. Shaun Roache, APAC Chief Economist, S&P At CRISIL, effective communication and leadership are
Global Ratings gave a presentation on ‘Asia Pacific’s Recovery: interlinked. Our leaders believe strategic communication
Hard work begins,’ where he provided an outlook on the Asia- is key to building transparency and a culture of openness
Pacific region. and open conversation. CRISIL has launched several digital
and non-digital platforms to boost engagement. ECHO and
Also, CRISIL GR&A and Greenwich Associates, together with
CrisBuzz (our employee intranet) continue to be two ongoing
S&P Global Trucost, hosted a webinar, ‘ESG best practices
communication platforms that empower employees to
for Emerging Markets’. The discussion focused on how asset
collaborate, learn and share experiences. We connected with
managers can adopt environmental, social and corporate
employees regularly (weekly and fortnightly) through town
governance best practices for improving data quality,
halls, leadership talks and one on one sessions by doctors
incorporating suitable assessment frameworks and ensuring
and experts to share their views. Employees were encouraged
active stewardship in their emerging market investing strategies.
to ask questions and share their views on a wide array of
The webinar hosted by CRISIL Research with Dr Beth Ann topics, including gratitude, family, and happiness.
Bovino, Managing Director, US Chief Economist, S&P Ratings
We celebrated employee contributions and performances with
focused on how the economic landscape could be emitting
our comprehensive Reward & Recognition programme, which
different signals for companies, consumers and other key
covers team and individual achievements and milestones.
stakeholders.
After adapting to remote working, we also invested in training
CRISIL Research also hosted a webinar, ‘Peering through the all people managers on empathy and how to effectively
grave storm: India macroeconomic and corporate outlook’, manage teams remotely. In 2020, CRISIL saw an increase of
where participants discussed the trends and outlook for the 8 percentage points in overall engagement scores over 2019.
Indian and global economy, along with outlook on revenue This year CRISIL was also certified as a ‘great workplace’ by
and margins for India Inc. the Great Place to Work Institute.

48
Annual Report 2020

Talent development towards key aspects of Board governance, including the size
and composition of the Board, criteria for Directorship, terms
We believe that our future depends on nurturing talent over
and removal, succession planning, evaluation framework and
time and on the strength of our talent development and
ongoing training and education of Board members. The policy
succession planning processes. We apply rigour and depth in
lays down detailed guidelines for remuneration of the Board,
grooming our leaders through a judicious mix of on-the-job
Managing Director and employees and covers fixed and
interventions, curated learning journeys across functional
variable components and long-term reward options, including
and managerial disciplines and customised coaching
Employee Stock Option Schemes. It includes the scope and
assignments. Active involvement and reviews by our senior
terms of reference of the Nomination and Remuneration

Corporate Overview
leadership have been integral in the successful execution of
Committee and is available at [Link]
these designed frameworks. Our focus areas such as learning
investors/[Link].
agility, digital acumen and design thinking ensure that our
leaders remain up-to-date. Directorship changes
Directors Resignation
Members of the Company’s Board of Directors are eminent Ms Arundhati Bhattacharya resigned as Independent Director
persons of proven competence and integrity. Besides from the Board with effect from April 15, 2020 on account
experience, strong financial acumen, strategic astuteness of accepting a full-time executive role in another company.
and leadership qualities, they have a significant degree of Ms Bhattacharya confirmed that there were no other
commitment to the Company and devote adequate time to material reasons for her resignation. CRISIL’s Directors place
meetings and preparation. In terms of requirement of Listing on record their sincere appreciation for the support, advice
Regulations, 2015, the Board has identified core skills, and guidance provided by Ms Bhattacharya to CRISIL and its
expertise and competencies of the Directors in the context of management, during her tenure as Director on the Board.
the Company’s business for effective functioning, which are
Appointment

Statuory Reports
detailed in the Corporate Governance Report.
Ms Shyamala Gopinath was appointed as Additional Director
The Board meets at regular intervals to discuss and decide
(Independent) with effect from July 10, 2020. The Company
on Company/business policy and strategy, apart from other
received a notice under Section 160 of the Companies Act,
Board business. The Board exhibits strong operational
2013, from a member signifying his intention to propose
oversight with regular business presentations of meetings. An
the candidature of Ms Gopinath to the office of Director.
annual planner of topics to be discussed at the Board meeting
Accordingly, at the last Annual General Meeting held on
is pre-approved by the Directors. The Board/Committee
August 28, 2020, the shareholders approved appointment of
meetings are pre-scheduled and a tentative annual calendar
Ms Shyamala Gopinath as Independent Director with effect
of the meetings is circulated to the Directors well in advance
from July 10, 2020 to July 9, 2025.
to help them plan their schedules and ensure meaningful
participation. Only in the case of special and urgent business, Further, Mr Martin Fraenkel, who was appointed as an
should the need arise, the Board’s approval is taken by Additional Director of the Company with effect from April
18, 2019, was also appointed as a Non-Executive Director,

Financial Statements
passing resolutions through circulation, as permitted by law,
which are confirmed in the subsequent Board meeting. The liable to retire by rotation at the last Annual General Meeting
Company has complied with secretarial standards issued held on August 28, 2020, after the Company received a
by the Institute of Company Secretaries of India on Board notice under Section 160 of the Companies Act, 2013, from a
meetings and Annual General Meetings. member signifying his intention to propose the candidature
of Mr Fraenkel to the office of Director.
The agenda for the Board and committee meetings includes
detailed notes on the items to be discussed to enable the Re-appointment of Managing Director & CEO
Directors to take informed decisions. The Company follows
At the last Annual General Meeting of CRISIL held on August
a two-day schedule for its quarterly committee and Board
28, 2020, Ms Ashu Suyash was re-appointed as Managing
meetings, which allows for greater discussion time for Board
Director & CEO for a period of five years with effect from June
matters.
1, 2020.
The Board met four times in 2020 – on February 11, April 21,
Retiring by rotation
July 21 and October 20. The maximum interval between two
meetings did not exceed 120 days. In view of the pandemic- In accordance with the Articles of Association of the Company
related travel restrictions, except for the February Board and provisions of the Companies Act, 2013, Mr John Berisford
meeting, all other Board and Committee meetings took retires by rotation and being eligible, has sought re-appointment.
place virtually. Measures were taken to ensure security of A brief profile of Mr John Berisford has been given in the
information and confidentiality of process, at the same time, notice convening the Annual General Meeting.
ensuring convenience of the Board members.
Board independence
The Company’s Nomination & Remuneration Policy
formulated under Section 178(3) of the Companies Act, Our definition of ‘independence’ of Directors is derived from
2013, covers roles, responsibilities, criteria and procedures Regulation 16(b) of SEBI (Listing Obligations and Disclosure

49
CRISIL Limited

Requirements) Regulations, 2015 and Section 149(6) of Peer assessment of Directors, based on parameters such
the Companies Act, 2013. Based on the confirmation/ as participation and contribution to Board deliberations,
disclosures received from the Directors and on evaluation of ability to guide the Company in key matters, knowledge and
the independence of directors during the Board evaluation understanding of relevant areas, team attitude and initiative
process and assessing veracity of disclosures, the following was reviewed by the Board for individual feedback.
Non-Executive Directors are Independent:
During 2020, the Company actioned the feedback from the
a) Mr M Damodaran Board evaluation process conducted in 2019. Agenda was re-
b) Ms Vinita Bali organised to allow for longer time for discussion on strategy
and business matters, streamlining of content and briefing
c) Mr Girish Paranjpe
on compliance submissions, sharper business presentations
d) Ms Shyamala Gopinath with executive summaries and focus on strategy reviews.
In the opinion of the Board, the Independent Directors fulfill Dedicated time was reserved for Board feedback on the
the conditions specified under the Companies Act, 2013, the agenda. Board interaction between meetings was stepped
Rules made thereunder and SEBI (Listing Obligations and up through Board calls on various topics. Specific items were
Disclosure Requirements) Regulations, 2015, are independent added in the Board planning for reviews, such as succession
of the management and are persons of high integrity, and review of long term investments/initiatives, which were
expertise and experience. Further, in terms of Section 150 of covered during the year. The number of meetings among
the Companies Act, 2013 read with Rule 6 of the Companies Independent Directors were increased to one each, every
(Appointment and Qualification of Directors) Rules, 2014, quarter. Scheduling of meetings improved to allow sufficient
Independent Directors of the Company have confirmed discussion time for quarterly performance reviews during
that they have registered themselves with the databank regular quarterly cycles.
maintained by the Indian Institute of Corporate Affairs (IICA) Risk Management Policy, compliance framework and
and have passed the proficiency test, if applicable to them. internal control adequacy
Committees of the Board The Board has adopted policies and procedures for governance
The Board has five committees: and for orderly and efficient conduct of its business, including
adherence to the Company’s policies, safeguard of its assets,
• Audit Committee prevention and detection of frauds and errors, accuracy and
• Corporate Social Responsibility Committee completeness of accounting records and timely preparation of
reliable financial disclosures. The Company’s internal control
• Risk Management Committee
systems are commensurate with the nature of its business and
• Nomination and Remuneration Committee the size and complexity of its operations.

• Stakeholders’ Relationship Committee Significant audit observations and follow-up actions

thereon are reported to the Audit Committee. For ensuring
Details of all the committees, along with their charters,
independence of audits, internal auditors report directly to
composition and meetings held during the year, are provided
the Audit Committee. Both internal and statutory auditors
in the Report on Corporate Governance, as part of this Annual
have exclusive executive sessions with the Audit Committee
Report.
regularly. In addition, during the year, management performed
Annual evaluation by the Board a review of key controls impacting financial reporting, at entity
as well as operating levels and submitted its report to the
During the year, the Board carried out an annual evaluation of
Audit Committee and the Board. Despite travel restrictions
its performance as well as of the working of its committees and
during 2020, internal audit teams performed reviews and
individual Directors, including the Chairman of the Board. This
audit procedures comprehensively using remote working
exercise was carried out through a structured questionnaire
tools and the Company was successful in significantly
prepared separately for the Board, Committees, Chairman and
completing planned internal audits.
individual Directors. The Chairman’s performance evaluation
was carried out by Independent Directors at a separate meeting. The Company has a mechanism to identify, assess, monitor
and mitigate various risks to key business objectives.
The parameters assessed included various aspects of the
Mitigation plans for key risks identified by the businesses
Board’s functioning such as: effectiveness, meetings, quantity
and functions are implemented and reviewed consistently.
and timeliness of the information flow between Board
CRISIL has adopted a balanced approach to risk management
members and management, Board member participation,
by mitigating risks to an acceptable level within its tolerances
quality and transparency of Board discussions, time devoted
and protecting CRISIL’s reputation and brand while
by the Board to strategy, performance and risk issues, Board
supporting the achievement of operational and strategic
composition and understanding of roles and responsibilities,
goals. Data security and business continuity were of primary
succession and evaluation, and possession of required
focus during the pandemic. Technological applications and
experience and expertise by Board members.
processes were significantly upgraded for all processes, for
The performance of the committees was evaluated on the basis client and internal deliverables to be executed in a timely and
of their effectiveness in carrying out their respective mandates. secure manner during the pandemic. Additional measures

50
Annual Report 2020

were taken on information security for remote working, Particulars regarding conservation of energy, technology
especially in areas of remote access to databases, processing absorption and foreign exchange earnings and outgo
operations and virtual meetings. Heightened filtering and
The particulars regarding foreign exchange earnings and
monitoring of phishing mails and advanced security controls
outgo appear as separate items in the notes to the accounts.
were deployed for vulnerability detection and mitigating risk
The Company does not own any manufacturing facility
of attacks. Trainings were conducted for all employees with
and, hence, our processes are not energy-intensive. Hence,
a specific focus on cyber security, phishing, security beyond
particulars relating to conservation of energy and technology
office, business continuity and compliance. Additionally, the
absorption stipulated in the Companies (Accounts) Rules,
Company continued monitoring top risks on its risk register,

Corporate Overview
2014, are not applicable.
which are discussed in greater detail in the Management
Discussion and Analysis Report. However, we endeavour to support the environment by
adopting environment-friendly practices in our office
The Company has a comprehensive framework for monitoring
premises and have rolled out a policy that aims at improving
compliances with applicable laws. Functional teams operate
environmental performance of CRISIL. Our efforts in this
as the first line of defence. Their procedures and actions are
direction centre around making efficient use of natural
periodically subject to audit and test procedures monitoring
resources, elimination of waste and promoting recycling of
adherence of the system. The Company has an additional IT-
resources.
enabled tool to monitor compliances and augment a robust
compliance assessment process. A quarterly certification on Initiatives taken in the area of environment protection during
compliance with laws is provided by senior management to 2020 are mentioned under Principle No 6 in the Business
the Board. Responsibility Report.

Based on the framework of internal financial controls and Corporate Social Responsibility
compliance systems established and maintained by the
The Company has constituted a Corporate Social

Statuory Reports
Company, work performed by the internal, statutory and
Responsibility (CSR) Committee in accordance with Section
secretarial auditors and external consultants and the
135 of the Companies Act, 2013. The role of the Committee is
reviews performed by management and the relevant board
to review the CSR Policy, approve activities to be undertaken
committees, including the Audit Committee and the Risk
by the Company towards CSR and monitor implementation of
Management Committee, the Board is of the opinion that
projects and activities undertaken by the Company towards
the Company’s internal financial controls with reference to
CSR.
financial statements were adequate and effective during the
financial year 2020. The CSR Policy of the Company is available at https://
[Link]/en/home/investors/[Link]
Directors’ Responsibility Statement
and further details about the initiatives taken by the Company
The Directors hereby confirm that: on CSR during the year under review have been appended as
Annexure I to this Report.
i. in the preparation of the annual accounts, the applicable
accounting standards have been followed and that no Vigil mechanism

Financial Statements
material departures have been made from the same;
The Company has established a vigil mechanism for Directors
ii. they have selected such accounting policies and applied and employees to report genuine concerns, details of which
them consistently and made judgements and estimates have been given in the Corporate Governance Report annexed
that are reasonable and prudent, so as to give a true and to the Annual Report.
fair view of the state of affairs of the Company at the end
Significant developments
of the financial year and of the profits of the Company for
that period; Scheme of arrangement between CRISIL Ratings Limited
(the ‘Transferee Company’) and CRISIL Limited (the
iii. they have taken proper and sufficient care for the
‘Transferor Company’) in terms of Section 230 to 232 of the
maintenance of adequate accounting records in
Companies Act, 2013
accordance with the provisions of the Companies Act,
2013, for safeguarding the assets of the Company and for The Securities and Exchange Board of India’s (SEBI)
preventing and detecting fraud and other irregularities; notifications dated May 30, 2018 and September 19, 2018,
under the SEBI (Credit Rating Agencies) Regulations, 1999,
iv. they have prepared the annual accounts on a going-
mandated the segregation of ratings and non-ratings
concern basis;
businesses of credit rating agencies. Pursuant to and in order
v. they have laid down internal financial controls for to comply with, these notifications, CRISIL Limited’s Board of
the Company and such internal financial controls are Directors approved the transfer of the Ratings business to
adequate and operating effectively; and a 100% subsidiary of the Company on April 17, 2019. CRISIL
Ratings Limited, the wholly owned subsidiary of CRISIL
vi. they have devised proper systems to ensure compliance
Limited, was incorporated on June 3, 2019, with the objective
with the provisions of all applicable laws and such
of transitioning the Ratings business of the Company.
systems are adequate and operating effectively.

51
CRISIL Limited

A Scheme of arrangement for the segregation was presented being closed. The aforesaid merger/closure does not have any
under Sections 230-232 of the Companies Act, to the National material impact on the operations/financials of Greenwich.
Company Law Tribunal (NCLT), Mumbai Bench and approved
Impact of pandemic
by the shareholders on February 12, 2020. The approval of
NCLT was received on June 8, 2020. As indicated earlier, your Company remained fully operational
and continued to function seamlessly, serving clients and
CRISIL Ratings Limited received the necessary approvals
meeting the needs of stakeholders during the pandemic.
from SEBI and the Reserve Bank of India (RBI) on December 4,
The nature of Company’s business ensured that demand
2020 and December 31, 2020, respectively, to undertake the
for our products and offerings continued and there was no
Ratings business transferred to it pursuant to the Scheme.
large demand contraction. However, given the evolving global
Accordingly, effective December 31, 2020, the Ratings business situation, the Company continues to closely assess and take
undertaking was transferred to CRISIL Ratings Limited by way steps towards mitigating the risks which could arise from:
of a slump sale for a lump sum consideration equal to the net
• Conversion of pipeline and clients postponing their
asset value of Ratings business undertaking of Rs 51.70 crore.
contracts/assignments
During the interim period, the Ratings business continued
• Lockdown situation resulting in inability to deploy
uninterrupted to deliver best-in-class quality and high
resources at different locations due to restrictions in
service standards in all its offerings to customers and
mobility
other stakeholders. The Ratings business transition was
seamless and the management team remains unchanged • Clients, in future, not being in a position to accept
and committed to analytical excellence and quality. The alternative delivery modes using work-from-home for a
governance of the subsidiary has been entrusted to prolonged period
eminent and distinguished leaders with diverse expertise
Given the continuing and evolving nature of the pandemic
and experience co-opted as Board members during 2020.
situation, the Company continues to monitor changes in
The Board and its Committees are fully functional and
future economic conditions and their possible impact on
have commenced operational oversight of the business.
assets and investments.
More details on CRISIL Ratings Limited and its Board of
Directors are available on [Link] The Company continues to maintain strong client connect
our-businesses/[Link] . virtually, along with regular communication with all stakeholders.
The Company published high impact research papers, credit
Acquisition of Greenwich Associates LLC
alerts and thought papers for clients including C-suite, senior
The Company had reported the acquisition of Greenwich stakeholders and industry members. An exclusive webpage
Associates LLC and its subsidiaries in December 2019, ([Link]
in the Directors’ Report for the previous year. Greenwich [Link]) on impact of the pandemic was created.
Associates is a leading provider of proprietary benchmarking Multiple webinars on the pandemic’s impact on economy and
data, analytics and qualitative, actionable insights that various sectors were hosted, which included:
helps financial services firms worldwide to measure and
• Ratings Round Up (RRU) webinar ‘Fiscal 2020: Credit
improve business performance. The closing formalities for
quality trends and the road ahead’, with 2000+ attendees
the acquisition were completed during the current financial
year. Accordingly, Greenwich Associates LLC, Greenwich • In the global markets, themes such as environment,
Associates International LLC, Greenwich Associates social and governance (ESG) best practices and BCP risk
Singapore Pte. Ltd, Greenwich Associates Japan K.K., management, which were received very well
Greenwich Associates Canada ULC, Greenwich Associates • A number of webinars and discussion forums covering
UK (Holdings) Ltd and Greenwich Associates UK Ltd became various sectors and themes in the domestic market
subsidiaries of CRISIL with effect from February 26, 2020.
Following the closure, an integration team was set up. The The Company has instituted a data-driven readiness
integration plan encompassed all critical areas including framework which takes into consideration certain key factors
brand, people, culture integration, product development, for deciding on the date of reopening of our office locations
client synergy, operations, information technology and and return to the workplace. These factors include, but are
security, finance and compliance processes. Given the onset not limited to:
of the pandemic, progress on integration was slow initially • City-specific readiness (active Covid-19 cases, recovery
and in-person interaction was limited. However, focused rates, etc.)
employee communications by all levels of management and
collaboration of multi-geography and multi-functional teams • Government restrictions on travel and economic activity
delivered the key milestones of the integration plan. • Assessment of availability and adequacy of medical
facilities
Towards simplifying the holding structure of Greenwich
downstream subsidiaries, Greenwich Associates International • Employee sentiment
LLC merged with Greenwich Associates LLC on December 18,
As the situation is still evolving, we continue to closely
2020. Further, Greenwich Associates UK (Holdings) Ltd is
monitor the conditions on the ground, even as work-from-

52
Annual Report 2020

home protocols are in force. Once the office is reopened, it As required under the Securities and Exchange Board of
will start with limited access initially and the presence will be India (Listing Obligations and Disclosure Requirements)
gradually scaled up in a phased and calibrated manner with Regulations, 2015, the Company has formulated a Related
appropriate safeguards in place to ensure employee health Party Transactions Policy, which has been put up on
and safety as a key priority. the Company’s website [Link]
investors/[Link]. The Company has
Subsidiaries
developed an operating procedures manual for identification
As on December 31, 2020, the Company had three Indian and monitoring of related party transactions.
and 13 overseas wholly owned subsidiaries. CRISIL Irevna
Particulars of loans, guarantees or investments under

Corporate Overview
Australia Pty Ltd was incorporated as a subsidiary of CRISIL
Section 186
Limited with effect from August 28, 2020. In accordance
with Section 129(3) of the Companies Act, 2013, CRISIL Details of loans, guarantees and investments covered under
has prepared a consolidated financial statement of the the provisions of Section 186 of the Companies Act, 2013, are
Company and all its subsidiaries, which is a part of the provided in the Notes to Financial Statements.
Annual Report. A statement containing salient features of
Auditors’ report
the financial statements of the subsidiaries and highlights
of performance of subsidiaries is included in the Annual M/s Walker Chandiok & Co LLP (an affiliate of Grant Thornton
Report. network) is the statutory auditor of the Company. Its report is
a part of the Annual Report.
The Company has no associate companies within the meaning
of Section 2(6) of the Companies Act, 2013. Shareholders of the Company have approved the appointment
of M/s Walker Chandiok & Co LLP as the statutory auditor of
In accordance with third proviso of Section 136(1) of the
the Company for five years, i.e., from the conclusion of the
Companies Act, 2013, the Annual Report of the Company,
30th Annual General Meeting held on April 20, 2017, until the
containing therein its standalone and the consolidated
conclusion of the 35th Annual General Meeting. Consequent

Statuory Reports
financial statements, has been placed on the website,
to the amendments to Companies Act, 2013, ratification of
[Link]. Further, as per the fourth proviso of the
appointment of the statutory auditor at every Annual General
said section, audited accounts of all subsidiaries as on
Meeting is no longer required.
December 31, 2020, have also been placed on the website
[Link]. Shareholders interested in obtaining a Secretarial audit report
copy of the audited accounts of the subsidiaries may write
The Board has appointed M/s Makarand M. Joshi & Co.,
to the Company Secretary at the Company’s registered
Practising Company Secretaries, to conduct the secretarial
office.
audit and their report is appended as Annexure III.
The Company has obtained a certificate from the statutory
Comments on auditors’ report
auditors, certifying that the Company is in compliance with
FEMA Regulations with respect to downstream investments. There are no qualifications, reservations or adverse remarks
or disclaimers made by M/s Walker Chandiok & Co LLP,
Particulars of contracts or arrangements with related
statutory auditors, in their audit report and by M/s Makarand
parties referred to in Section 188(1)
M. Joshi & Co., Practising Company Secretaries, in their

Financial Statements
A significant quantum of related party transactions secretarial audit report.
undertaken by the Company is with its subsidiaries engaged
The statutory auditor did not report any incident of fraud
in product delivery of CRISIL’s businesses and business
to the Audit Committee of the Company in the year under
development activities. The Company has also been providing
review.
analytical support to S&P Global entities as a part of a Master
Services Agreement, which was approved by a majority vote Management Discussion and Analysis Report
from CRISIL’s minority shareholders, without participation
Management Discussion and Analysis Report for the year under
of S&P, through a resolution passed by postal ballot on
review, as stipulated under Securities and Exchange Board
December 15, 2014.
of India (Listing Obligations and Disclosure Requirements)
The Audit Committee pre-approves all related party Regulations, 2015, is annexed to the Annual Report.
transactions. The details of such transactions undertaken
Corporate governance
during a particular quarter are placed at the meeting of the
Audit Committee held in the succeeding quarter. The Company is committed to maintaining the highest
standards of corporate governance and adhering to the
All contracts/arrangements/transactions with related parties
corporate governance requirements as set out by SEBI. The
that were executed in 2020 were in the ordinary course of
Report on Corporate Governance as stipulated under Securities
business and at an arm’s length. During the year, there were
and Exchange Board of India (Listing Obligations and Disclosure
no related party transactions that were materially significant
Requirements) Regulations, 2015, is a part of the Annual Report.
and that could have a potential conflict with the interests
A certificate from the auditors of the Company confirming
of the Company at large. All related party transactions are
compliance with the conditions of corporate governance as
mentioned in the notes to the accounts. The particulars of
stipulated under the Securities and Exchange Board of India
material contracts or arrangements with related parties
(Listing Obligations and Disclosure Requirements) Regulations,
referred to in Section 188(1) are given in a prescribed Form
2015, is also published in the Annual Report.
AOC–2 as Annexure II.
53
CRISIL Limited

Particulars of remuneration Statutory disclosures

Disclosures with respect to the remuneration of Directors and Directors state that there being no transactions with respect
employees as required under Section 197(12) of Companies to the following items during the financial year under review,
Act, 2013 read with Rule 5(1) of Companies (Appointment and no disclosure or reporting is required with respect to the same:
Remuneration of Managerial Personnel) Rules, 2014, have
1. Deposit from the public falling within the ambit of Section
been appended as Annexure IV to this Report.
73 of the Companies Act, 2013 and the Companies
In accordance with the provisions of Section 197(12) of (Acceptance of Deposits) Rules, 2014
the Companies Act, 2013 and Rule 5(2) of Companies
2. 
Issue of equity shares with differential rights as to
(Appointment and Remuneration of Managerial Personnel)
dividend, voting or otherwise
Rules, 2014, the names and other particulars of every
employee covered under the said rule are available at the Receipt of any remuneration or commission by the
3. 
registered office of the Company during working hours for a Managing Director/Whole-time Director of the Company
period of 21 days before the Annual General Meeting and will from any of its subsidiaries
be made available to any shareholder on request.
4. Significant or material orders passed by the regulators
Employee Stock Option Schemes or courts or tribunals, which impact the going concern
status and the Company’s operations in future
The Company has three Employee Stock Option Schemes.
Employee Stock Option Scheme – 2011 (ESOS 2011) was 5. Buyback of shares
approved by shareholders vide a special resolution passed
6. 
Material changes and commitments affecting the
through postal ballot on February 4, 2011. Employee Stock
financial position of the Company that have occurred
Option Scheme – 2012 (ESOS 2012) was approved by
between the end of the financial year to which the
shareholders vide a special resolution passed through postal
financial statements relate and the date of this report,
ballot on April 10, 2012. Employee Stock Option Scheme
unless otherwise stated in the report
– 2014 (ESOS 2014) was approved by shareholders vide a
special resolution passed through postal ballot on April 3, 7. The Company is not required to maintain cost records as per
2014 and amended by a special resolution of shareholders at sub-section (1) of Section 148 of the Companies Act, 2013
the 30th Annual General Meeting held on April 20, 2017.
Acknowledgements
During 2020, there were no material changes in the Employee
The Board of Directors wishes to thank the employees
Stock Option Schemes of the Company. The schemes are
of CRISIL for their exemplary dedication and excellence
in compliance with SEBI regulations. As per Regulation 14
displayed in conducting all operations. The Board also
of Securities and Exchange Board of India (Share Based
wishes to place on record its sincere appreciation of the
Employee Benefits) Regulations, 2014, read with Securities
faith reposed in the professional integrity of CRISIL by
and Exchange Board of India circular no. CIR/CFD/POLICY
customers and investors who have patronised its services.
CELL/2/2015 dated June 16, 2015, the details of the ESOS are
The Board acknowledges the splendid support provided by
uploaded on the Company’s website [Link]
market intermediaries. The affiliation with S&P Global has
en/home/investors/financial-information/[Link].
been a source of great strength. The Board of Directors also
The Company has received a certificate from M/s Walker wishes to place on record its gratitude for the faith reposed
Chandiok & Co LLP that ESOS 2011, ESOS 2012 and ESOS in CRISIL by the shareholders, SEBI, the RBI, the Government
2014 have been implemented in accordance with SEBI of India and the state governments. The role played by the
regulations and the resolution passed by members in their media in highlighting the good work done by CRISIL is deeply
general meeting. The certificate will be placed at the ensuing appreciated.
Annual General Meeting for inspection by members.
Annual Return
The complete Annual Return (Form MGT-7) is available on
For and on behalf of the Board of Directors of CRISIL Limited,
the Company’s website: [Link]
investors/financial-information/[Link].
John L. Berisford
Financial year
Chairman
The Company follows the calendar year as the financial year Mumbai, February 11, 2021  (DIN: 07554902)
in terms of a special approval obtained from the Company
Law Board in 2015.
CEO and CFO certification
A certificate from Ms Ashu Suyash, MD & CEO and Mr Sanjay
Chakravarti, Chief Financial Officer, pursuant to provisions of
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, for the year
under review was placed before the Board of Directors of the
Company at its meeting held on February 11, 2021.

54
Annual Report 2020

Annexure I to the Directors’ Report

Annual Report on Corporate Social Responsibility Activities as prescribed
under Section 135 of the Companies Act, 2013 and Companies (Corporate Social
Responsibility Policy) Rules, 2014

Corporate Overview
1. 
A brief outline of the Company’s CSR policy, including overview of projects or programmes proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programmes: Kindly refer the Corporate Social
Responsibility Report published elsewhere in this Annual Report and the Company’s website, [Link]
2. The Composition of the CSR Committee: Ms. Vinita Bali (Chairperson), Mr. Girish Paranjpe and Ms. Ashu Suyash
3. Average net profit of the Company for last three financial years (2017 – 2019): Rupees 364.08 crore
4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above) (2017 – 2019): Rupees 7.28 crore
5. Details of CSR spend during the financial year:
(a) Total amount spent for the financial year: Rupees 7.44 crore. This is higher than the prescribed limit
(b) Amount unspent, if any: No unspent amount
(c) Manner in which the amount spent during the financial year is detailed below:

(1) (2) (3) (4) (5) (6) (7) (8)

Sl. CSR Project Sector in which the Projects or Amount Amount spent on projects Cumulative Amount spent:

Statuory Reports
no. or Activity Project is covered programmes outlay or programmes expenditure Directly or Through
identified (1) Local area (budget) Direct Overheads up to the Implementing Agency*
or other projects or expenditure reporting
(2) Specify the programme- on period
state or district wise programmes
where projects or projects
or programmes
were undertaken (Rs crore) (Rs crore) (Rs crore) (Rs crore)
1 Mein Education & Women Assam 1.68 1.95 0.10 2.05 Rashtriya Grameen
Pragati – Empowerment – Vikas Nidhi
Assam & Financial Capability (RGVN), Centre for
Livelihood Building and Microfinance &
initiative Livelihoods Livelihoods (CML),
Grameen Sahara
2 Mein Women Rajasthan 1.07 1.27 0.07 1.34 Direct
Pragati - Empowerment –

Financial Statements
Rajasthan Financial Capability
Building
3 CRISIL Re Environmental Mumbai, 0.86 1.15 0.06 1.21 Nature Forever Society,
Conservation Pune, Chennai, Grow Trees, Green
– through Tree Kolkata Yatra, Say Trees,
Plantation & Nature Environment &
Reducing plastic in Wildlife Society, United
oceans Way of Mumbai
4 Centre for Financial Literacy & Maharashtra/ 0.75 0.90 0.05 0.94 Direct
Financial Inclusion Haryana
Literacy
5 Gram Shakti Women Assam, 0.63 0.83 0.04 0.87 TrainingCentral
Empowerment – Rajasthan, Solutions Pvt. Ltd
Financial Capability Maharashtra,
Building Haryana
6 Other Women Assam, Madhya 0.05 0.07 - 0.07 Haqdarshak
Projects Empowerment – Pradesh Empowerment
Financial Capability Solutions Pvt. Ltd.,
Building MPSRLM
7 Disaster COVID Intervention Mumbai, Pune, 1.00 0.91 0.05 0.96 Mumbai Roti Bank,
Relief Chennai, Delhi International
Association for Human
Values (IAHV), United
Way (Mumbai), United
Way (Bengaluru), ACT
Grants
Total 6.04 7.07 0.37 7.44

55
CRISIL Limited

Implementing Agencies Grameen Sahara

A. Financial capability building: Grameen Sahara was started in the year 2001, with
awareness and training programme at small scale in
Rashtriya Grameen Vikas Nidhi (RGVN)
different livelihood activities like fisheries, sericulture,
RGVN was founded in April 1990 as a development horticulture, piggery, etc., along with the awareness
support organisation and is registered under the Society’s programme on health, education, etc., for rural people.
Registration Act of 1860. RGVN has its headquarters On February 12, 2002 Grameen Sahara was formally
at Guwahati, Assam and operates in the North Eastern registered as a society under Societies Registration
and Eastern states of India primarily focusing on rural Act XXI of 1860. Grameen Sahara’s key areas of work
livelihood, capacity building and institution building include mobilisation and capacity building of grassroots
programmes. community based organisations (CBOs) such as the
FPOs, SHGs, MBTs, Women Federations, skill upgradation
Haqdarshak Empowerment Solutions Pvt. Ltd. (HESPL)
through technological intervention etc.
HESPL was founded in 2015 with the goal to ensure that
each and every citizen is aware of their entitlements and
C. Environment conservation:
can benefit from them. Currently, operational across
20 states in India, HESPL works on alleviating poverty Nature Forever Society
through use of technology to transform the way citizens Nature Forever Society (NFS) is a not-for-profit entity
find out about, apply for and benefit from various welfare registered under the Societies and Registration Act,
schemes. 1860, working for the conservation of house sparrows
TrainingCentral Solutions Pvt. Ltd. (TcSPL) and other common flora and fauna since 2006. Started
by Mohammed Dilawar (founder and president), Nature
TrainingCentral Solutions Pvt. Ltd., came into existence in
Forever Society was registered in 2008. The mission of
2009, is an end-to-end solution provider in the training
the Nature Forever Society is to involve citizens in the
space for the Banking, Financial Services and Insurance
conservation movement in India. To achieve this Nature
(BFSI) segment and works in developing content, design
Forever Society has been working by launching initiatives
and technology for effective training delivery through
which are simple and have far reaching conservation
e-learning, mobile learning, classroom training and
value.
publication.
Grow Trees

B. Women empowerment through livelihoods: [Link] is a social enterprise that specialises

in tree plantation. It is in its 11th year of operations,
Centre for Microfinance & Livelihoods (Antaran Project)
founded by Mr. Pradip Shah (former MD CRISIL, founding
Centre for Microfinance & Livelihood (CML) is a support member HDFC). It has planted 5.5+ million trees across
umbrella organisation for capacity building, collaborative 20 states on public lands (Trees for Rivers, Trees for
interventions, research, facilitating implementation of Tribals, Trees for Tigers, etc).
government programmes and aiding policy formulations
Green Yatra
in the development space. It was established in 2008,
under the aegis of Grameen Sahara, an NGO based in Green Yatra, headquartered in Mumbai, was founded in
Assam, with the support of Tata Social Welfare Trust 2009. A non-profit organisation, Green Yatra is dedicated
(TSWT) – an ally of Sir Dorabji Tata Trust, Mumbai. CML to the protection, conservation and improvement of the
is registered under the Meghalaya Societies Registration environment.
Act, XII of 1983 on June 18, 2012. CML is located in
Say Trees
Guwahati, Assam. The centre is envisioned to emerge as
a resource and capacity building platform in North East. SayTrees is registered as an NGO under Indian Trust Act,
At present CML has linkage with more than 500 NGOs in 1982 and was started in Bengaluru in 2007, by its founder,
the region. Kapil Sharma. The NGO specialises in agro forestry,
Miyawaki forests, rejuvenation of lakes and water bodies
Antaran is a key intervention of the Tata Trust’s craft
and installation of solar lamps in villages.
based livelihood programme, initiated to bring changes
in the development of the crafts sector. The programme Nature Environment & Wildlife Society (NEWs)
is being implemented by Tata Trusts in Odisha, Assam, Nature Environment & Wildlife Society (NEWs) is a
Nagaland and Andhra Pradesh in association with not-for-profit entity, registered under the West Bengal
associate organisations. Centre for Microfinance and Societies Registration Act, 1961 on October 11, 1991.
Livelihoods (CML), an associate organisation of Tata The NGO is engaged in conservation of wildlife, ecology,
Trusts is executing the Antaran programme in Assam. natural resources and sustainable livelihoods for an
Programme is in 2nd year of operation in the Kamrup improved environment.
Cluster.

56
Annual Report 2020

United Way of Mumbai (UWM) as a global community. Spread over 156 countries, IAHV
focuses on empowering people and communities with
UWM is a non-profit organisation working closely with
inclusive and sustainable development interventions,
several NGOs and corporates for their CSR programmes,
fostering universal human values and resilience. IAHV’s
workplace giving campaigns and other events. This
initiatives span 11 out of 17 UN Sustainable Development
includes designing of CSR policy and strategies, due
Goals.
diligence of NGO partners, programme implementation,
employee volunteering, impact assessments and United Way Bengaluru
financial and programmatic reporting. UWM is a chapter
United Way Bengaluru is a charitable organisation,

Corporate Overview
of United Way Worldwide, a prominent global charity.
formed under Societies Registration Act, 1860 working
for education, healthcare, livelihood, environment,
D. Disaster intervention/COVID-19 relief response disaster response and management of under privileged
persons since 2008.
Mumbai Roti Bank
ACT Grants
Mumbai Roti Bank is a non-profit, food rescue
organisation initiated by Roti Foundation Mumbai ACT Grants was launched on April 1, 2020 and seeks
that bridges the gap between hunger and excess food. capital-efficient, scalable solutions from innovative
Started in December 2017 under the able mentorship start-ups and NGOs which need an initial seed grant to
of former Director General of Police, Maharashtra, Mr. D. fight the spread of the pandemic.
Sivanandhan, with a mission ‘No one should go hungry’
6. In case the Company has failed to spend two per cent of
they aim to eliminate hunger, malnutrition and food
the average net profit of the last three financial years or
wastage, many meals at a time.
any part thereof, the Company shall provide the reasons
International Association for Human Values (IAHV) for not spending the amount in its Board report: Not

Statuory Reports
Applicable as the Company has met the target.
International Association for Human Values (IAHV) located
in New Delhi is a registered not-for-profit Trust, engaged 7. The CSR Committee of the Company hereby confirms
in initiatives involving conservation of environmental that the implementation and monitoring of CSR Policy,
resources and livelihood enhancement. It was founded to is in compliance with CSR objectives and Policy of the
foster a deeper understanding of the values that unite us Company.

For CRISIL Limited For and on behalf of the Corporate Social Responsibility
Committee of CRISIL Limited

Ashu Suyash Vinita Bali

Managing Director Chairperson
& Chief Executive Officer Corporate Social Responsibility Committee

Financial Statements
(DIN: 00494515) (DIN: 00032940)
Mumbai, February 11, 2021

57
CRISIL Limited

Annexure II to the Directors’ Report

Form No. AOC - 2
[Pursuant to Clause (h) of Sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of
the Companies (Accounts) Rules, 2014]
Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in
Sub-section (1) of Section 188 of the Companies Act 2013, including certain arms-length transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis:
Sl. Name of Nature of Duration of Salient features Justification for Date(s) of Amount Date on
no. related party contracts/ contracts/ of contracts/ entering into approval paid as which special
and nature of arrangements/ arrangements/ arrangements/ such contracts/ by the advances, resolution
relationship transactions transactions transactions, including arrangements/ Board if any was passed
value, if any transactions in general
meeting u/s
188(1)
(a) (b) (c) (d) (e) (f) (g) (h)
Not Applicable

2. Details of material contracts or arrangements or transactions at arm’s length basis:

Sl. Name of Nature of Duration of Salient features of Justification for
Date(s) of Amount Date on
no. related party contracts/ contracts/ contracts/arrangements/ entering into
approval by paid as which
and nature of arrangements/ arrangements/ transactions, including such contracts/
the Board advances, special
relationship transactions transactions value, if any arrangements/ /Audit if any resolution
transactions
Committee was passed
in general
meeting u/s
188(1)
(a) (b) (c) (d) (e) (f) (g) (h)
1 S&P Global Global Analytical Ongoing Support SPGI and its group Services rendered by October 20, Nil December
Inc (Formerly Center subject to in their global operations, CRISIL are at arm’s 2020 15, 2014*
known as renewal as per consideration of around Rs. length pricing (ALP)
McGraw-Hill contractual 208.05 crore in FY 2020 and in the ordinary
Financial, terms course of business.
Inc.) and its CRISIL maintains
subsidiaries appropriate
(SPGI) documentation to
(Fellow support ALP with
Subsidiaries) SPGI and its group
Companies.
2 CRISIL Irevna Global Research Ongoing CRISIL invoices CRISIL Irevna Services rendered by October 20, Nil Not
UK Limited and Analytical subject to UK for GR&A services which CRISIL are at arm’s 2020 applicable
(100% Services (GR&A) renewal as per Irevna UK has recovered length pricing (ALP)
Subsidiary) contractual from external clients. The and in the ordinary
terms pricing is after considering course of business.
appropriate remuneration CRISIL maintains
to Irevna UK to meet its appropriate
functional obligation documentation to
(Amount invoiced by CRISIL support ALP with
to CRISIL Irevna UK Limited CRISIL Irevna UK.
is Rs. 163.57 crore in FY
2020)
3 CRISIL Ratings Transfer of One time Transfer took place at a net Transfer of Ratings April 17, Nil Not
Limited Ratings business purchase consideration of business from CRISIL 2019 applicable
from CRISIL Rs. 51.70 crore Limited to CRISIL
Limited to CRISIL Ratings Limited
Ratings Limited
* CRISIL has been S&P’s trusted partner and has been providing support services to S&P entities since 2003 (i.e. prior to CRISIL becoming a subsidairy of S&P).
Approval for this transaction was sought through a shareholders postal ballot conducted in December 2014. This resolution was voted upon by the minority
shareholders, without participation of S&P. Services provided by CRISIL are at arm’s length pricing and in the ordinary course of business.

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

John L Berisford
Chairman
Mumbai, February 11, 2021  (DIN: 07554902)

58
Annual Report 2020

Annexure III to the Directors’ Report

FORM NO. MR.3
SECRETARIAL AUDIT REPORT
For the Financial Year Ended 31st December, 2020

Corporate Overview
[Pursuant to section 204(1) of the Companies Act, 2013 and rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]

To,
The Members,
CRISIL Limited
Crisil House, Central Avenue,
Hiranandani Business Park,
Powai, Mumbai-400076

We have conducted the secretarial audit of the compliance (a) The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to good (Substantial Acquisition of Shares and Takeovers)
corporate practices by CRISIL Limited (hereinafter called the Regulations, 2011;
Company). Secretarial Audit was conducted in a manner that
(b) The Securities and Exchange Board of India
provided us a reasonable basis for evaluating the corporate
(Prohibition of Insider Trading) Regulations, 2015;

Statuory Reports
conducts/statutory compliances and expressing our opinion
thereon. (c) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
Based on our verification of the Company’s books, papers,
2009 (Not Applicable to the Company during the
minute books, forms and returns filed and other records
Audit Period);
maintained by the Company and also the information
provided by the Company, its officers, agents and authorised (d) The Securities and Exchange Board of India (Share
representatives during the conduct of secretarial audit, Based Employee Benefits) Regulations, 2014;
we hereby report that in our opinion, the Company has,
(e) The Securities and Exchange Board of India (Issue
during the audit period covering the financial year ended on
and Listing of Debt Securities) Regulations, 2008;
31st December, 2020 (hereinafter called the ‘Audit Period’)
(Not Applicable to the Company during the Audit
complied with the statutory provisions listed hereunder and
Period);
also that the Company has proper Board processes and
compliance mechanism in place to the extent, in the manner (f) The Securities and Exchange Board of India

Financial Statements
and subject to the reporting made hereinafter: (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and
We have examined the books, papers, minute books, forms
dealing with client;
and returns filed and other records maintained by the
Company for the financial year ended on 31st December, (g) The Securities and Exchange Board of India (Delisting
2020 according to the provisions of: of Equity Shares) Regulations, 2009 (Not Applicable
to the Company during the Audit Period); and
(i) The Companies Act, 2013 (the Act) and the rules made
there under; (h) The Securities and Exchange Board of India (Buyback
of Securities) Regulations, 1998; (Not Applicable to
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
the Company during the Audit Period)
and the rules made there under;
We have also examined compliance with the applicable
(iii) The Depositories Act, 1996 and the Regulations and Bye-
clauses of the following:
laws framed there under;
(i) Secretarial Standards issued by The Institute of Company
(iv) Foreign Exchange Management Act, 1999 and the rules
Secretaries of India.
and regulations made there under to the extent of Foreign
Direct Investment and Overseas Direct Investment (ii) The Securities and Exchange Board of India (Listing
(External Commercial Borrowings are not Applicable to Obligations and Disclosure Requirements) Regulations,
the Company during the Audit Period); 2015.

(v) 
The following Regulations and Guidelines prescribed We further report that, having regard to the compliance
under the Securities and Exchange Board of India Act, system prevailing in the Company and on the examination of
1992 (‘SEBI Act’):- the relevant documents and records including Internal audit

59
CRISIL Limited

report in pursuance thereof on test-check basis, the Company meetings of the Board of Directors or Committee of the Board,
has complied with the following law applicable specifically to as the case may be.
the Company:
We further report that there are adequate systems and
• The Securities and Exchange Board of India (Credit Rating processes in the Company commensurate with the size and
Agencies) Regulations, 1999 (“CRA Regulations”) operations of the Company to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
• The Securities and Exchange Board of India (Research
Analysts) Regulations, 2014 We further report that during the audit period,
During the period under review the Company has complied 1. the company has allotted 12,88,964 equity shares of face
with the provisions of the Act, Rules, Regulations, Guidelines value of Re. 1 each pursuant to Employee Stock Option
and Standards made there. Scheme.
We further report that 2. the company has transferred its Ratings business to
CRISIL Ratings Limited, wholly owned subsidiary of the
The Board of Directors of the Company is duly constituted
Company, pursuant to scheme of arrangement approved
with proper balance of Executive Directors, Non-Executive
by National Company Law tribunal, Mumbai vide order
Directors and Independent Directors. The changes in the
dated 8th June, 2020.
composition of the Board of Directors that took place during
the period under review were carried out in compliance with
We further report that
the provisions of the Act.
For Makarand M. Joshi & Co.
Adequate notice is given to all directors to schedule the
Practising Company Secretaries
Board Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance and a system exists for
Makarand Joshi
seeking and obtaining further information and clarifications
Partner
on the agenda items before the meeting and for meaningful
FCS No. 5533
participation at the meeting.
CP No. 3662
All decisions at Board Meetings and Committee Meetings are Place: Mumbai UDIN: F005533B002786740
carried out unanimously as recorded in the minutes of the Date:11/02/2021 Peer Review No: P2009MH007000

60
Annual Report 2020

Annexure IV to the Directors’ Report

Disclosures pursuant to Section 197(12) of the Companies Act, 2013, and Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
1. The ratio of remuneration of each director to the median remuneration of the employees of the Company and percentage
increase in remuneration of each director, CFO, CEO, Company Secretary or Manager, if any, in the financial year:

Corporate Overview
Sr. no. Name of the director Ratio of the % increase in
remuneration to the remuneration
median remuneration
of the employees
a. Mr. John L Berisford, Chairman, Non-Executive Director NA* NA
b. Mr. M Damodaran, Independent Director 3.31 6.83%
c. Ms. Vinita Bali, Independent Director 3.28 7.04%
d. Mr. Girish Paranjpe, Independent Director 3.31 10.08%
e. Ms. Arundhati Bhattacharya, Independent Director% 0.81 -69.40%
f. Ms. Shyamala Gopinath Independent Director$ 1.43 NA
g. Mr. Ewout Steenbergen, Non-Executive Director NA* NA
h. Mr. Martin Fraenkel, Non-Executive Director NA* NA
i. Ms. Ashu Suyash, MD & CEO 47.93 13.32%

Statuory Reports
j. Mr. Amish Mehta, COO NA 9.62%
k. Mr. Sanjay Chakravarti, CFO NA 10.57%
l. Ms. Minal Bhosale, Company Secretary NA 5.66%
* Since April 2015, S&P Global has waived sitting fees and commission payable to its nominees
% Ceased to be a Director with effect from April 15, 2020
$ Appointed as an Independent Director on July 10, 2020

2. 
The % increase in median remuneration of employees in the financial year: Median pay increased by 6.56 % in 2020
compared with 2019.
3. The number of permanent employees on the rolls of the Company: 3670
Average percentile increase already made in salaries of employees, other than the managerial personnel, in the last
4. 
financial year and its comparison with the percentile increase in the managerial remuneration, and justification thereof
and point out if there are any exceptional circumstances for increase in the managerial remuneration: Average increase

Financial Statements
in remuneration for 2020 over 2019 was 5.11 %. Average increase in remuneration of KMPs from 2019 was 11.21%. This
was on account of increase which was in line with market movements for comparable parameters.
5. Affirmation that the remuneration is as per the remuneration policy of the Company: Yes

61
CRISIL Limited

Annexure to the Directors’ Report

Management Discussion and Analysis Report

CRISIL businesses maintaining CRISIL Ratings’ market leadership in 2020. Over

1,200 new BLRs were assigned in the year. Further, we on-
CRISIL is a leading, agile and innovative global analytics company
boarded over 140 new large corporate clients.
driven by its mission of making markets function better. We are
India’s foremost provider of ratings, data, research, analytics As a part of the Company’s continuing improvement initiatives,
and solutions. A strong track record of growth, culture of we completed the development of a new technology-based
innovation and global footprint sets us apart. We have delivered workflow platform for the ratings’ operations. We also
independent opinions, actionable insights and efficient launched a web portal and a mobile app, which were well
solutions to over 100,000 customers. Our businesses operate received by issuers and investors.
from India, Argentina, Australia, China, Hong Kong, Poland, On the innovation front, CRISIL Ratings continued to be the
Singapore, Switzerland, the United Arab Emirates (UAE), The first port of call for innovative instruments even in the muted
United Kingdom (UK) and the United States of America (USA). bond market. In 2020, CRISIL Ratings assigned a rating to
We are majority owned by S&P Global Inc., a leading provider of the first dealer securitisation transaction in India and seven
transparent and independent ratings, benchmarks, analytics covered bond transactions.
and data to the capital and commodity markets worldwide.
Further, during the year, CRISIL GAC enhanced its support
to S&P Global Ratings Services on surveillance activities,
Ratings coverage of environmental, social and governance (ESG)
Corporate bond issuances were tepid in 2020 and declined by diagnostics and evaluations, and led automation and process
~8%. Issuances were concentrated among large and highly transformation initiatives in the data and analytical domains.
rated issuers, especially those with strong parentage. GAC’s partnership in content creation for publications grew
substantially in light of the increased market outreach efforts
The Covid-19 pandemic and resultant lockdown had led to an
during Covid-19.
unprecedented disruption in demand and supply and general
business activity. Private sector capital expenditure and
consequent demand for credit were muted and wholesale Research
domestic bank credit growth was around 3% for 9 months Global Research and Analytics (GR&A)
ended December 31, 2020. Besides sluggish demand for
wholesale bank credit, the BLR market was affected by the The pandemic-induced weakness in the global economic
guidance from five large banks, increasing the minimum environment stalled progress and decision-making at
exposure threshold for rating requirement to Rs 30-50 crore banks during the initial phase. However, regulatory-driven
from Rs. 5-10 crore. opportunities coupled with the business strategy of deep
mining strategic accounts resulted in some large wins
Securitisation volume was highly muted from March, when during the second half of the year. The GR&A business saw
the lockdown and moratorium were announced as a result of significant on-year growth in EBITA, largely driven by a
which collections from borrowers fell sharply. While there are strong performance in the risk space. The revenues from
signs of green shoots with pick-up in economic activity and fundamental research weakened largely due to anticipated
improvement in collections across asset classes, lenders and sell-side restructuring, offsetting gains from strategic
investors are gradually returning to the market. project based engagements and data analytics. As for
On the regulatory front, SEBI announced certain changes asset managers, enhanced monitoring of high-yield credits
aimed to address the problem of issuer non-cooperation has become a priority. Demand for environmental, social
with CRAs, at the beginning of the year. CRAs are required to and governance (ESG) data and analysis has risen sharply.
downgrade investment-grade INC ratings to non-investment Meanwhile, demand for niche research has increased as
grade after 6 months and to not assign any new ratings to private equity firms try to deploy their dry powder. New
issuers who are INC for more than 12 months with other CRAs. hedge funds are also being launched to buy undervalued or
distressed assets.
Post March 2020, regulatory changes were aimed at
providing regulatory forbearance to corporates affected Risk and Analytics segment benefitted from key wins and
by the pandemic and lockdown. SEBI granted temporary renewals in model validation, LIBOR transition and stress
relaxations from default recognition and regulatory timelines testing. The business won a large IBOR stress-testing
for publication of rating rationale, among others. deal with a large US-based investment bank. The credit
risk vertical gained from a significant win for bi-lateral
Investors’ preference for quality ratings and issuers’ choice
credit assessment support for a bank based out of Europe.
to work with us helped in new client acquisitions and
CRISIL has published several industry surveillance reports,
62
Annual Report 2020

enhanced covenant analysis and increased the frequency 15 thematic reports, 21 bylines and 16 client presentations
of credit risk assessments. The adoption of credit risk on various sectoral and economic issues.
workflow automation such as updating the net asset values
of funds has also grown significantly. Non-financial risk
CRISIL Coalition
management remains a key focus area for our clients amid
this pandemic. The clients’ focus areas range from the CRISIL Coalition continued initiatives to enhance market
maturity of their business resilience policies and controls relevance and broaden the reach to include more regional
to vendor management frameworks. They are also focussing players. In 2020, CRISIL Coalition added two new logos to its
on managing risks related to cyber security, financial crime, impressive list of global investment banks. New and more

Corporate Overview
fraud, culture and conduct. granular IP was developed to cater to new clients such as
regional banks.

India Research CRISIL Coalition reinforced its leadership with the top 15
banks by meeting most of the heads of corporate investment
Covid-19 posed a major challenge for our India Research
banks and all heads of GM/IB businesses in addition to
business this year with the pandemic restraining clients’
presenting to 150+ executive committees at various banks.
discretionary expenditure and negatively impacting their
More than 55 publications globally carried our views and
decision making cycles and execution of existing mandates.
quoted us during the year. We were referenced by leading
However, with most client segments stressing on strategic
global banks in 110+ investor relations presentations.
review, we successfully rewired ourselves in keeping with our
customers’ requirements and came up with innovative products, The first stage of a multi-year roadmap to digitise CRISIL
ensuring business continuity. Coalition’s core operational processes and offer deeper
integration with banks’ systems has been completed.
We continued to maintain a dominant position in the Funds
The foundation work addresses data ingestion and data
and Fixed Income Research business due to significant
processing and will improve the speed to market of our

Statuory Reports
traction in valuations for PF, treasury portfolios and existing
Client Intelligence product, as well as provide a strong base
MLD issuances.
to deliver enhanced customer value over 2021 and beyond.
We continue to be one of the largest providers of fixed income CRISIL Coalition retained the coveted SSAE16 SOC2 Type II
indices in India and have launched two new indices in 2020, certification, which is a testimony of the stringent controls
taking the total count to 98. One of the highlights this year and measures deployed for data and IP protection.
was the launch of CRISIL AIF Benchmarks.
Our Industry Research business launched a high-frequency Greenwich Associates
dashboard providing deep insights into markets, commodities
In 2020, Greenwich Associates made aggressive changes to
and various sectors impacted by the pandemic.
transform our operating model and position our business
Quantix, our comprehensive, differentiated, and client-centric for revenue growth—including important steps leveraging
data platform, improved its value proposition by enhancing the combined capabilities of the newly integrated Greenwich
both data coverage and strengthening the power of analytics Associates/Coalition platform.

Financial Statements
on top of the largest company database in the country.
We enhanced the timeliness and quality of our core data by re-
We launched micro-level assessments/dashboards for tooling our Voice of the Customer (VOC) programmes. We also
various segments such as PVs, LCVs, tractors, MSMEs, made several changes to position the business for future growth.
housing finance and personal loans, which have garnered First, we increased our focus on high-growth opportunities by
interest among clients looking to recalibrate their business boosting resource commitments to VOC products identified as
strategies, plans and policies. having the highest growth potential.

We launched 50 unique virtual training titles this year which In addition to this, we continued to develop new and enhanced
helped overcome the challenges traditional classroom products.
trainings face. We also launched CRISIL Wealth Manager
Certification that saw good participation from retail clients. CRISIL Infrastructure Advisory
The C-CER and the CRISIL Research business continued The business engaged with clients in not just India but also in
to focus on franchise and thought-leadership activities by the international market and worked with various stakeholders,
conducting distinctive research on contemporary issues. conducted webinars, client interviews and also closed mandates
Over and above all this, year 2020 was a milestone for our through successful virtual delivery of milestones.
business in terms of client connects through knowledge Despite the overall slowdown, Advisory business booked
sharing sessions, webinars and franchise. Our teams several new assignments especially post the first half, largely
conducted over 300 knowledge sharing sessions since driven by international mandates, extension mandates from
the countrywide lockdown in March, with over 5,000 client existing domestic clients and some specific opportunities
attendees across sectors. With continued focus on franchise around commercial coal mining. The business won a couple
initiatives, we released a number of high impact reports and of large-value mandates including All-India study on sectoral
press releases and thought leadership pieces. We released

63
CRISIL Limited

demand of petrol and diesel for oil marketing companies; notified under the Companies (Indian Accounting Standards)
support for commercial coal block auctions; feasibility Rules, 2015, read along with Section 133 of the Companies
and operationalisation of gas exchange/platform; market Act, 2013, (the ‘Act’) and other relevant provisions of the Act.
assessment on key sectors for MSMEs for an international Financial statements have been prepared under historical
financial institution. cost convention on an accrual basis except for certain financial
instruments, which are measured at fair value at the end of
The business deepened its international presence by winning
each reporting period. Management accepts responsibility for
mandates in the emerging markets of Asia and Africa. The
the integrity and objectivity of financial statements as well as
business will continue to focus on international opportunities
for various estimates and judgment used therein.
and push for a larger share of business.
The Group completed the acquisition of 100% stake in Greenwich
The business was able to model the impact of Covid-19 on few
Associates LLC (USA) and its subsidiaries (GA), on February
critical sectors by continuously interacting with key stakeholders.
26, 2020, at a total value of USD 40 million, which includes
We also hosted a number of webinars on topical themes.
upfront and deferred consideration. GA is a leading provider
of proprietary benchmarking data, analytics and qualitative,
CRISIL Business Intelligence & Risk Solutions actionable insights that helps financial services firms worldwide
(BIRS) measure and improve business performance. The acquisition
The CRISIL BIRS business leveraged its strong domain and will complement CRISIL’s existing portfolio of products and
cutting edge offerings in the risk and analytics space to expand offerings to new segments across financial services
support the evolving credit, risk and regulatory needs of the including commercial banks and asset and wealth managers.
banking and financial sector. Therefore, the figures for the year ended December 31, 2020, are
not comparable with the previous year’s figures.
uring the year, the business faced pandemic-driven
D
headwinds, However, despite cost and budget pressures on The consolidated financial performance and result of operations
clients, there was a clear uptick from end of Q3 in terms of are relevant for understanding CRISIL’s performance.
restarting past dialogues as well as fresh initiations A. Financial performance
 e continued to strengthen and consolidate our position as
W 1. Property, plant, equipment and intangible assets
a leading internal credit rating platform provider, driven by
The Group’s investments in property, plant and equipment
enhanced RAM solution (ICON) – launched in late 2019. The
represent the cost of buildings, leasehold improvements,
new platform continues to find traction in the Indian financial
computers, office equipment, furniture, fixtures and vehicles.
sector
Property, plant and equipment are measured at cost less
 ur enhanced Early Warning Signals (EWS) solution –
O accumulated depreciation and impairment losses, if any.
integrating external data to generate robust automated
The Group’s intangible assets – software, customer
triggers and the regulatory solution practice (mainly ADF
relationship, technology, database, tradename, platform
solution) witnessed good traction
and Right of Use Assets – are stated at cost of acquisition
We continue to increasingly invest in our proprietary big or construction less accumulated amortisation and
data, cloud-ready platform, Fulkrum, to provide business impairment losses, if any. The estimated useful lives
intelligence solutions and provide bespoke analytics in a of intangible assets and the amortisation period are
more effective and efficient manner. This is important as the reviewed at the end of each financial year.
evolving landscape is pushing banks to accelerate their move
The Group has adopted Ind AS 116 effective January 1, 2020,
to cloud-based solutions vis-à-vis traditional on-premise
using the modified retrospective method and has applied
business applications. the standard to its leases with the cumulative impact
recognised on the date of initial application i.e. January
Analysis of consolidated financial performance 1, 2020. Accordingly, previous period information has not
and result of operations been restated. The lease expenses which were recognised
as rent expense in previous periods is now recognised as
Consolidated financial statements include financial depreciation expense for the right-of-use asset and finance
statements of CRISIL Ltd combined with its wholly owned cost for interest accrued on lease liability. The Group has
subsidiaries (‘Group’). Subsidiaries are entities controlled by elected not to recognise right-to-use assets and lease
the Company. liabilities for short term leases (lease term of 12 months or
less) and leases of low-value and has recognised the lease
Financial statements of the Group and its subsidiaries payments for such leases as an expense over the lease term.
have been combined on a line by line basis by adding the
During the year, the Group capitalised Rs. 168.09 crore to
book values of like items – assets, liabilities, income and
its gross block and deducted Rs. 4.84 crore from the gross
expenses – after duly eliminating intra-group balances and block on disposal of various assets. Capitalised assets
transactions and the resulting gains/losses. include office equipment, computers, software, intangible
Consolidated financial statements have been prepared assets on acquisition and leasehold improvements to
in accordance with Indian Accounting Standards (Ind AS) support business expansion and provide for replacement
of the existing assets.

64
Annual Report 2020

The Group expects to fund its investments in fixed assets c. The Group maintains adequate amount of liquidity/
and infrastructure from internal accruals and liquid assets. treasury to meet strategic and growth objectives. It
At the end of the year, the Group’s investments in property, has ensured a balance between earning adequate
plant, equipment, Right of Use asset and intangible returns on liquidity/treasury assets and the
assets were as follows: need to cover financial and business risks. The
(Rupees in crore) Group’s treasury policy calls for investing surplus
in combination of fixed deposits with scheduled
As on December 31, banks and debt mutual funds.
Details
2020 2019

Corporate Overview
Carrying value B. Loans
Property, plant, equipment, Right of 796.26 238.35 Loans comprise security deposits and loans to staff.
Use asset and intangible assets Loans were Rs. 45.76 crore as on December 31, 2020,
Less accumulated depreciation 409.60 178.08 as against Rs. 41.43 crore in the previous year.
Net block 386.66 60.27
C. Trade receivables
Depreciation as a % of total income 6% 2%
Accumulated depreciation as % of 51% 75% Trade receivables at gross levels were Rs. 328.45 crore
gross block as on December 31, 2020, compared with Rs. 223.12
The increase in net block and accumulated depreciation is crore in the previous year. Trade receivables constituted
largely on account of Right of Use asset pursuant to adoption 17% of operating revenue compared with 13% of
of Ind AS 116. operating revenue during the previous year. Overall
Debtors were higher on account of consolidation of
2. Goodwill on consolidation Greenwich from current year. The break-up of debtors
Goodwill on consolidation represents excess of purchase relating to the segment is as below:

Statuory Reports
consideration over the net asset value of acquired
subsidiaries on the date of such acquisition. Goodwill
is tested for impairment annually or more frequently, 42.19
if there are indications of impairment. The growth in 13%
goodwill is mainly on account of the goodwill attributed
to acquisition of Greenwich Associates LLC.
18% 57.99
3. Financial assets 2020
A. Investments and treasury: The Group’s investments 228.27 69%
and treasury comprise non-current equity
Ratings
investments, current investments, cash and bank
Advisory
balances and fixed deposits. Research
a. Equity investments: All equity investments
(quoted and unquoted) are measured at fair value

Financial Statements
through other comprehensive income (FVTOCI).
b. Current investments and treasury: The Group’s 47.91
21%
investments in mutual funds are classified as
fair value through profit or loss (FVTPL).The
Group’s treasury was Rs. 584.69 crore as on
December 31, 2020, as against Rs. 595.35 crore 2019
in the previous year.
60% 19% 41.24
133.97
Treasury Ratings
Advisory
Research
252.25
305.74

113.78 (Rupees in crore)

268.22
229.32 The Group believes that the outstanding trade
10.73 receivables are recoverable and it has adequate
2020 2019 provision for bad debt. Provision for doubtful debt
Fixed Deposits balance was Rs. 21.09 crore as on December 31,
Cash and Bank balance 2020, as against Rs. 23.75 crore in the previous year.
Mutual Funds Provision for bad debt as a percentage of revenue
(Rupees in crore) for the year ended December 31, 2020, was 1%
compared with 1% in the previous year.

65
CRISIL Limited

D. Other financial assets 9. Provisions and other liabilities

Other financial assets comprise unbilled receivables, A. Provision for employee benefits
accrued interest and forward contract receivable. The overall liability was Rs. 105.27 as on December
Other financial assets amounted to Rs. 102.57 crore 31, 2020, compared with Rs. 81.27 crore in the
for the year ended December 31, 2020, compared previous year. The increase is mainly due to merit
with Rs. 79.88 crore in the previous year. increase and employee benefits.
4. Deferred tax assets and advance taxes B. Others
Other non-financial liabilities include unearned revenue
Deferred tax assets and liability primarily comprise deferred
and statutory liabilities. Unearned revenue represents
taxes on property, plant, equipment, leave encashment,
fee received in advance for which services have not
accrued compensation to employees, gratuity, fair valuation
been rendered. Other liabilities were as Rs. 237.99 crore
of quoted/unquoted investments, business combination,
against Rs 173.99 crore in the previous year.
provision for bad debt and deferred initial rating fees. The
Group’s net deferred tax assets totaled Rs. 64.06 crore as
on December 31, 2020, as against Rs. 42.59 crore in the B. Results of operations
previous year. Deferred tax assets are recognised only to
The summary of the operating performance is given below:
the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such (Rupees in crore)
209.01
deferred tax assets can be realised.
Particulars Year ended December 31,
The net advance income tax asset was Rs. 79.69 crore as 2020 % of 2019 % of
on December 31, 2020, compared with Rs. 73.96 crore in revenue revenue
the previous year. Income from 1,981.83 96 1,731.72 96
5. Other assets operations
Other income 83.15 4 72.84 4
Other assets mainly comprise advances to vendors, accrued Total income 2,064.98 100 1,804.56 100
revenue, prepaid expenses and tax credit receivable. Expenses
6. Equity share capital Personnel 1,068.44 52 877.56 49
expenses

The Company’s authorised capital is Rs. 10 crore,
Finance costs 14.39 1 0.23 0
comprising 100,000,000 equity shares of Re 1 per share.
Depreciation 121.11 6 36.86 2 233.68
During the year, the company issued and allotted 288,964
Other expenses 402.75 20 398.32 22
equity shares to eligible employees on exercise of options
Total expenses 1,606.69 78 1,312.97 73
granted under Employee Stock Option Scheme (ESOP)
Profit before tax 458.29 22 491.59 27
2014. Consequently, the company issued, subscribed and
paid-up capital increased from 72,304,326 to 72,593,290 Tax expenses 103.56 5 147.64 8
equity shares of Rs. 1 each. Profit after tax 354.73 17 343.95 19

7. Other equity Segmental revenue analysis

Other equity was Rs. 1304.55 as on December 31, 2020,
7%
as against Rs. 1,164.69 crore in the corresponding period
of the previous year. Other equity comprises reserves & 28%
surplus and other comprehensive income (OCI).
2020 817.60
8. Financial liabilities
A. Trade payables 65%
Ratings Services
Trade payables as on December 31, 2020, were Rs.
Research Services
105.26 crore as against Rs. 75.46 crore in the previous Advisory Services
year. Trade payables include amount payable to
vendors for the supply of goods and services.
B. Other financial liabilities
8%
Other financial liabilities, which include dues to
employees, unclaimed dividend and miscellaneous 32%
liabilities were Rs. 430.02 crore as on December 31,
2020, as against Rs. 168.17 crore in the previous year. 2019
The increase is mainly on account of lease liability 544.57
60%
pursuant to adoption of Ind AS 116 with effect from
Ratings Services
1st January, 2020.
Research Services
Advisory Services

66
Annual Report 2020

Segmental profits CRISIL Rating continued its growth trajectory. New client
10.07 acquisitions and strong existing relationships strengthened
CRISIL Ratings’ market leadership in 2020. CRISIL assigned
1,209 new BLRs and 7,000 SME gradings and assessments
during the year. With this, CRISIL has assigned ratings to more
10.07 than 34,000 large and mid-sized corporates and assessed
the performance of 150,000 SMEs till date.
209.01 2020 226.73
That said, focus on high-growth segments and existing

Corporate Overview
relationships increased our share in the bond market. We
Ratings Services
also on-boarded 140+ new large corporate clients.
209.01 2020 226.73 Research Services
Advisory Services In a challenging credit environment, we witnessed
continuation of the phenomenon of flight to quality – issuers
Ratings Services
Research Services
as well as investors/lenders continued to prefer working with
Advisory Services quality-focused CRAs, especially CRISIL, over others.
12.73
Global Analytical Centre (GAC) enhanced its support to SPGRS
on surveillance activities coverage of ESG diagnostics and
12.73
evaluations and led automation and process transformation
initiatives in the data and analytical domains.
233.68 2019 219.54 In Research segment, The GR&A business closed big
opportunities related to stress testing, model validation
Ratings Services and a large IBOR transition deal and continued to tap into
opportunities generated by regulatory guidelines around

Statuory Reports
233.68 2019 219.54 Research Services
Advisory Services better credit risk management practices. Significant progress
was made with the Low Default Portfolios (LDP) data pooling
Ratings Services
solution, strong data coverage across 60+ countries. We
(Rupees in crore) Research Services
continued to maintain a dominant position in the Funds and
149.52 Advisory Services
Segmental revenue by Geography Fixed Income Research business due to significant traction
in valuations for PF, treasury portfolios and existing MLD
559.62 issuances.
149.52
We continue to be one of the largest providers of fixed income
817.60 2020 indices in India and have launched two new indices in 2020,
559.62 taking the total count to 98. One of the highlights this year
India
was the launch of CRISIL AIF Benchmarks.
Europe
Quantix, our comprehensive, differentiated, and client-

Financial Statements
817.60 2020 North America
455.09 Rest of the World centric data platform in the Data & Analytics space, improved
India
its value proposition by enhancing both data coverage and
Europe
strengthening the power of analytics on top of the largest
North America
455.09 company database in the country.
164.98 Rest of the World
CRISIL Coalition continued initiatives to enhance market
relevance and broaden the reach to include more regional
574.88 players. In 2020, CRISIL Coalition added two new logos to its
164.98
impressive list of global investment banks. New and more
544.57 2019 granular IP was developed to cater to new clients such as
574.88 regional banks.
India
Europe On the operations side, our continued focus on automation
544.57 2019 North America and digitisation resulted in firm-wide FTE savings. The first
447.29 Rest of the World stage of a multi-year roadmap to digitise CRISIL Coalition’s
India
Europe
core operational processes and offer deeper integration with
North America
banks’ systems has been completed.
447.29 Rest of the World Greenwich Associates was acquired in Feb 2020 and the
current year consolidated financials reflect 10 months of
Greenwich business performance. In 2020, Greenwich made
(Rupees in crore)
aggressive changes to transform its operating model and

67
CRISIL Limited

positioning of the business for revenue growth including intelligence solutions and provide bespoke analytics in a
important steps leveraging the combined capabilities of the more effective and efficient manner.
newly integrated Greenwich Associates/Coalition platform.
Other income (net)
Greenwich faced Covid-19-related challenges that impacted
the buying behaviour of Greenwich clients and our ability to Other income was Rs. 83.15 crore as on December 31, 2020,
access senior buyside executives for data collection. compared with Rs. 72.84 crore in the previous year.

Despite the overall slowdown, Advisory business booked Expense analysis

several new assignments especially post the first half, largely
Total expenses in the year Rs. 1,606.69 crore was as against
driven by international mandates, extension mandates from
Rs. 1,312.97 crore in the previous year. The composition of
existing domestic clients and some specific opportunities
expenses is given below:
around commercial coal mining. The business won a couple
of large-value mandates including All-India study on sectoral (Rupees in crore)
demand of petrol and diesel for oil marketing companies;
Year ended December 31,
support for commercial coal block auctions; feasibility Particulars
2020 2019
and operationalisation of gas exchange/platform; market
Personnel expenses 1,068.44 877.56
assessment on key sectors for MSMEs for International
Finance costs 14.39 0.23
Finance Corporation; to name a few.
Depreciation 121.11 36.86
The CRISIL Business Intelligence & Risk Solutions (BIRS) Other expenses 402.75 398.32
business leveraged its strong domain and cutting edge offerings Total expenses 1,606.69 1,312.97
in the risk and analytics space to support the evolving credit, risk
Total expenses for 2020 includes the expenses for Greenwich
and regulatory needs of the banking and financial sector.
Associates LLC which was acquired in 2020. Excluding
We continue to increasingly invest in our proprietary big Greenwich , the overall costs grew by 1%.
data, cloud-ready platform, Fulkrum, to provide business

Key Ratios

Particulars 2020 2019 2018 2017 2016

Personnel expenses/revenue (%) 52 49 49 50 50
Operating and other expenses/revenue (%) 78 73 73 74 73
Operating profit (PBIDT)/revenue (%) 29 29 30 29 31
Depreciation and amortisation/revenue (%) 6 2 2 3 3
Tax/revenue (%) 5 8 7 8 9
Operating profit margin(%) 26 26 27 27 29
Net profit margin(%) 17 19 20 18 18
Operating Revenue per employee (Rs. Lakhs) 54.54 46.86 45.52 42.21 40.14
Operating expense per employee (Rs. Lakhs) 40.48 34.53 33.25 30.62 28.64
Operating profit per employee (Rs. Lakhs) 14.05 12.34 12.27 11.59 11.50
Debtor turnover ratio 7 6 6 7 7
Current ratio 2 2 2 2 2
Return on networth (%) 29 30 33 30 32

Analysis of CRISIL’s standalone financial performance and result of operations

Securities and Exchange Board of India (SEBI) notifications dated May 30, 2018 and Septe mber 19, 2018, under the SEBI
(Credit Rating Agencies) Regulations, 1999, have mandated segregation of Ratings and Non-Ratings businesses of Credit
Rating Agencies. Pursuant to and in order to comply with these notifications, CRISIL’s Board of Directors approved transfer
of the Ratings business to CRISIL Ratings Limited, (incorporated on June 3, 2019), a wholly owned subsidiary of the Company.
This transfer has been undertaken through a ‘Scheme of arrangement in terms of Section 230 to 232 of the Companies Act,
2013’ (‘Scheme’) which has been approved by Stock Exchanges. The Scheme has been sanctioned by the National Company
Law Tribunal (NCLT) with appointed date as January 1, 2020 and the certified copy of the Order dated June 8, 2020 has been
received on July 7, 2020 which has been filed with Registrar of Companies on July 20, 2020. Further SEBI and Reserve Bank of
India (RBI) has given necessary approval on December 4, 2020 and December 31, 2020, respectively, to CRISIL Ratings Limited
to act as a Credit Rating Agency. On receipt of approval, the Scheme became effective on December 31, 2020 with the appointed
date of January 1, 2020. The whole of the assets and liabilities of the transferred business became the assets and liabilities of
the resulting company and were transferred at their book value as per the Order, as appearing in the books of the Company with
effect from the appointed date. Therefore, the Balance Sheet figures for the year ended December 31, 2020, are not comparable
with the previous year’s figures.

68
Annual Report 2020

A. Financial performance
1. Property, plant, equipment and intangible assets
The Company’s investments in property, plant and equipment represent cost of buildings, leasehold improvements,
computers, software, office equipment, furniture, fixtures and vehicles. Property, plant, equipment and intangible assets
are measured at cost less accumulated depreciation and impairment losses, if any.
During the year, the Company capitalised Rs. 27.78 crore to its gross block and deducted Rs. 3.76 crore from the gross
block on disposal of various assets. Property, plant and equipment capitalised during the year include office equipment,

Corporate Overview
computers, software and leasehold improvements to support expansion of the business and provide for replacement of
the existing assets.
Depreciation as a percentage of total income was 7% in the current year. The Company expects to fund its investments in
fixed assets and infrastructure from internal accruals and liquid assets.
At the end of the year, the Company’s investments in net property, plant, equipment, intangible assets and Right of use
Assets were Rs. 145.93 as against Rs. 39.16 crore in the previous year. The increase is mainly due to Right of use asset
pursuant to the adoption of Ind AS 116 relating to lease accounting.
2. Financial assets
A. Investments and treasury: The Company’s investments and treasury comprise non-current equity investments,
current investments, cash and bank balances and fixed deposits.
a. Equity investments
All equity investments (quoted and unquoted, other than investment in subsidiaries) are measured at Fair Value

Statuory Reports
Through OCI (FVTOCI).
Investments in subsidiaries are measured at cost. As on December 31, 2020, the cost of investment in subsidiaries
stood at Rs. 208.93 crore.
b. Current investments and treasury
The Company’s investments in mutual funds are classified as Fair Value Through Profit and Loss (FVTPL). The
Company’s treasury totaled Rs. 392.22 crore as on December 31, 2020, as against Rs. 324.95 crore in the previous
year.
Cash and cash equivalents constituted 25% of the treasury as on December 31, 2020, as against 21% in the
previous year. The treasury position is after considering dividend payouts of Rs. 232.03 crore.
(Rupees in crore)

Financial Statements
As on December 31 Growth
Category
2020 % 2019 % %
Cash and bank balance 97.75 25 67.27 21 45
Fixed deposit 1.49 0 5.43 2 (73)
Mutual funds 292.98 75 252.25 77 16
Total 392.22 100 324.95 100
The Company’s treasury policy calls for investing surplus in a combination of fixed deposits with scheduled banks and debt
mutual funds. The Company’s treasury position is healthy.
B. Loans
 Loans comprise security deposits and loans to subsidiaries and staff. As on December 31, 2020, the outstanding
amount totaled Rs. 90.02 crore compared with Rs. 39.65 crore in the previous year
C. Trade receivables
Trade receivables at gross levels were 122.13 crore as on December 31, 2020, compared with Rs. 163.51 crore in the
previous year. Trade receivables as a percentage of operating revenue was 13% compared to 18% in previous year.
The Company believes that the outstanding trade receivables are recoverable and it has adequate provision for bad
debt. Provision for doubtful debt balance was Rs. 4.90 crore as on December 31, 2020, as against Rs. 10.08 crore in the
previous year. Provision for bad debt as a percentage of revenue for the year ended December 31, 2020, was 1% which
is in same lines as in the previous year.

69
CRISIL Limited

D. Other financial assets 8. Provisions

Other financial assets comprise advances Provisions comprise provisions for employee benefits.
recoverable in cash/kind, accrued revenue, accrued The overall liability was Rs. 72.45 crore as on December
interest and forward contract receivable. Other 31, 2020, as against Rs. 70.45 crore at the end of the
financial assets for the year ended December 31, previous year. Growth in the current year is in line with
2020, amounted to Rs. 104.48 crore compared with merit increase.
Rs. 37.21 crore in the previous year.
9. Other liabilities
3. Deferred tax assets and advance taxes
Other liabilities mainly represent payables on account
Deferred tax assets and liability primarily comprise
 of withholding tax, Goods and Service tax, other duties
deferred taxes on property, plant, equipment, leave and unearned revenue. Unearned revenue represents fee
encashment, accrued compensation to employees, received in advance or advance billing for which services
gratuity, fair valuation of quoted/unquoted investments, have not been rendered.
provision for bad debt and unearned revenue. The
B. Results of operations
Company’s net deferred tax assets were valued at Rs.
24.33 crore as on December 31, 2020, as against Rs. The summary of standalone operating performance is given
28.36 crore in the previous year. Deferred tax assets are below
recognised only to the extent that there is reasonable
(Rupees in crore)
certainty sufficient future taxable income will be
available against which such deferred tax assets can be Year ended December 31,
realised. Particulars 2020 % of 2019 % of
Advance income tax asset was Rs. 41.45 crore as on revenue revenue
December 31, 2020, compared with Rs. 48.15 crore in the Income from 888.78 90 839.01 87
previous year. operations
Other income 103.95 10 129.81 13
4. Other assets Total income 992.73 100 968.82 100
Other assets mainly comprise prepaid expenses, assets Expenses
heldfor sale and tax credit receivable. Personnel 436.34 44 428.29 44
expenses
5. Equity share capital
Finance cost 6.94 1 - -

The Company’s authorised capital is Rs. 10 crore, Depreciation 65.68 7 23.96 2
comprising 100,000,000 equity shares of Re 1 per Other expenses 265.44 27 319.39 33
share. During the year, the Company issued and allotted Operating 774.40 78 771.64 80
288,964 equity shares to eligible employees on exercise expenses
of options granted under ESOP 2014. Consequently, the Profit before tax 218.33 22 197.18 20
issued, subscribed and paid-up capital of the Company Tax expense 51.61 5 61.67 6
increased from 72,304,326 equity shares of Re 1 each to Profit after tax 166.72 17 135.51 14
72,593,290 equity shares of Re 1 each.
Revenue analysis
6. Other equity
Other income (net)
Other equity comprises reserves, surplus and OCI. It was
Rs. 688.06 crore as on December 31, 2020, as against Other income during the year was Rs 103.95 crore as
Rs. 751.52 crore in the corresponding previous period. compared with Rs. 129.81 crore in the previous year. This
This was after considering the final and interim dividend includes dividend on investments.
payouts amounting to Rs. 232.03 crore during the year Expense analysis
ended December 31, 2020.
The total expenses for the year ended December 31, 2020
7. Financial liabilities was Rs. 774.40 as against Rs. 771.64 crore during the
A. Trade payables corresponding previous year.
Trade payables amounted to Rs. 54.95 crore as on C. Risk management
December 31, 2020, as against Rs. 67.58 crore in
Risk management
the previous year. Trade payables include amount
payable to vendors for supply of goods and services. The Company has a robust risk management framework
in place with overall governance and oversight from
B. Other financial liabilities
the Risk Management Committee of the Board as well
Other financial liabilities, which include unclaimed
as oversight from the Audit Committee and Board of
dividend, book overdraft, dues to employees and sundry
Directors. Risk Management policy of CRISIL outlines the
deposit payable, were Rs. 459.29 as on December 31,
key accountabilities and responsibilities of managing
2020, as against Rs. 85.90 crore in the preceding year.

70
Annual Report 2020

risks at CRISIL. CRISIL has a balanced approach to the impact of volatility in foreign exchange fluctuations
risk management by mitigating risks to an acceptable on earnings. We evaluate exchange rate exposure
level within its tolerances and protecting CRISIL’s arising from these transactions and enter into foreign
reputation and brand while supporting the achievement exchange hedging contracts to mitigate the risks arising
of operational and strategic goals and objectives. Risk out of movement in the rupee. The foreign exchange
assessment is conducted periodically and the Company management programme covers a large portion of
has a mechanism to identify, assess, mitigate and monitor projected future revenue over a 12-month period and is
various risks to key business objectives. The Internal Risk restricted to standard forward contracts and options.
Management Committee, comprising senior members of

Corporate Overview
Appropriate internal controls are in place for monitoring.
the leadership team, provides governance and oversight
on the process. The Company has a specialised role of 3. Policy risk
‘Chief Risk Officer’ to drive the risk management agenda.
In the past two to three years, Securities and Exchange
Risk assessment is a combination of bottom-up and Board of India (SEBI), the regulator for credit rating
strategic view of key risks facing the business across all agencies (CRAs) in India, has issued guidelines to
segments and functions. All the risks were reviewed and mandate more disclosures by CRAs, ensure greater
assigned probability of occurrence and potential impact discipline in the rating processes, set enhanced norms
(financial and non-financial) based on deliberations for functioning of rating committees, underline the
with business leaders and independent assessment. process to be adopted in the event of non-cooperation
Mitigation plans are designed, implemented and by issuers, introduced independent members in the
monitored on a quarterly basis. Rating Committee for appeal cases, segregation of legal
entity for regulated and non-regulated businesses,
Key business risks and mitigation strategy are highlighted
introduced and standardised probability of default
below.
(PD) benchmarks, added a new subscript to the ratings

Statuory Reports
1. Business risks symbols for credit enhanced (CE) ratings, strengthened
the Board composition of CRAs and introduced a new
Current pandemic environment has impacted the overall
role of Chief Ratings Officer. SEBI has also raised the bar
business in 2020, which may extend for a part of 2021 as
on the eligibility to set up a CRA and stipulate greater
well, given the likelihood of weaker economic recovery
disclosure for issuers on their financial performance.
due to the second wave in our key markets of US and EU.
Overall, the guidelines will improve transparency of the
For the second half of 2021, promising vaccine trials and
credit rating process and enhance standards of the CRA
gradual easing off restrictions should inject confidence
industry. The recent guidelines increase the operational
in the economic recovery. Timely steps and actions were
intensity of the rating process. CRISIL continues to focus
initiated by the Company to ensure minimal disruption to
on leveraging technology to build appropriate controls
operations and client delivery.
and monitoring tools for safeguarding the rating process
The Company strives to add value to its clients by providing and facilitating necessary disclosures.
services of a superior quality, introducing relevant tools,

Financial Statements
Pursuant to amendments to the Securities and Exchange
platforms and products and by maintaining a robust
Board of India (SEBI) Credit Ratings Agencies (CRA)
franchise with investors and end-users, to mitigate
Regulations, 1999, mandating segregation of the ratings
the risk arising from slowdown in global economy and
and non-ratings businesses of credit rating agencies,
competitive pricing.
CRISIL Ltd has completed the transfer of its ratings
To mitigate the risk arising from high dependence on any business to wholly-owned subsidiary CRISIL Ratings
one business for revenues, the Company has adopted Limited. The segregation has no impact on the company’s
the strategy of diversifying into new products/services businesses and its stakeholders. The newly created
and different business segments. To address the risk of CRISIL Ratings Limited has an independent Board of
dependence on a few large clients and a few sectors in Directors comprising eminent and distinguished leaders
the business segments, the Company has also actively with diverse expertise and experience.
sought to diversify its client base and industry segments.

The Research business of CRISIL Limited has also
The Company carries reputation risk for services rendered, received a license as a Research Analyst, under the
especially in the rating business. CRISIL’s rating process SEBI (Research Analyst) Regulations, 2014 for specified
is designed to ensure that all ratings are based on the research products, following the segregation of the
highest standards of independence and analytical rigour. Ratings business to a subsidiary.
2. Foreign exchange earning risk 
The policy announcements for development of the
bond market have been supportive in recent years. The
CRISIL foreign currency revenue earnings are significant
steps towards nudging large corporates to raise 25% of
and any appreciation or depreciation in the rupee can
their funding needs from the bond market, persuading
have a significant impact on revenue and profitability. The
insurance and pension regulators to accord recognition to
Company has in place a well-defined foreign exchange
corporate bonds rated in ‘A category’, recently announced
management policy and process designed to minimise

71
CRISIL Limited

plan to allow netting off financial contracts for Credit monitor tax risk for direct and indirect taxes. We monitor
Default Swaps (CDS) and implementation of insolvency proposed changes in taxation legislation and ensure
and bankruptcy code (IBC), once fully implemented, will these are taken into account when we consider our future
structurally enhance the bond market’s role in India’s business plans.
financing landscape over time. As a part of its franchise
Legal and compliance functions seek to mitigate legal
strategy, CRISIL continues to highlight the critical role
risks with support from other departments. These
played by the bond market in the financial system,
functions aim to ensure that laws and regulations
engage with the regulators and policy makers to facilitate
are observed, to react appropriately to all impending
development of the bond market, conduct regular events
legislative changes or new court rulings, to attend to legal
on the theme of bond markers and invest significant
disputes and litigation and provide legally appropriate
efforts towards innovations that have the potential to
solutions for transactions and business processes.
expand the role of the bond market.
6. Technology-related risks
4. People risk
Information technology (IT) is core to the operations of all
Amid the pandemic employee health and well-being has
CRISIL businesses. All technology services are governed
been the primary focus for the Company. The Company
through comprehensive policies and processes. These
has taken adequate measures and equipped the
processes allow information access to personnel within
employees with resources to ensure health, safety and
the Company based on identified roles. Audits are
availability. The Company has made arrangements for a
conducted regularly to identify areas of vulnerability
Covid-19 24/7 dedicated helpline for employees and also
and to identify actions that mitigates the operational
professional and confidential counselling and medical
risks. ISO certification of key CRISIL offices is conducted
assistance (in partnership with a third party). Frequent
to ensure compliance with policies related to IT and
updates, safety advisory, quarantine measures, general
management system.
precautions including webinar sessions on tackling the
pandemic situation were issued and presented to all Inadvertent or deliberate sharing of client confidential
employees. Strategy for return to office is also planned data or CRISIL proprietary information by staff is an
keeping in mind the health and safety of employees. important risk. The Company has put in place a ‘Data
Guidance on official travel restrictions were also issued. Leakage Prevention’ process. The Information security
Adequate IT infrastructure arrangements were also made team acts as a second line of defense in driving the
to ensure continued availability and minimum disruption agenda pertaining to information security trainings,
to ongoing operations. Overall attrition for 2020 was implementing tools to strengthen information security
under control, however CRISIL continues to accord top posture and evaluate areas of vulnerabilities and improve
priority to managing employee attrition by formulating the controls to prevent/detect/neutralise malicious
talent retention programme and offering a competitive network penetration (cyber attack). Incidents of cyber
salary and growth path for talented individuals. attacks globally as well as in India have increased.
Various monitoring controls are in place to timely detect
5. Legal and statutory risks
and respond to any targeted attacks. Enhanced level of
CRISIL is subject to national and regional laws and awareness of vigilance against pertinent themes of cyber
regulations in such diverse areas as products, trademarks, attacks was imparted to all employees by way of digital
copyright, competition, the environment, corporate learning courses and awareness videos. The Company
governance, listing and disclosure, employment and continues to evaluate and invest in additional mitigation
taxes. Failure to comply with laws and regulations could plans through tools and infrastructure and enhanced
expose CRISIL to civil and/or criminal actions leading to monitoring. Highly responsive technology team and
damages, fines and criminal sanctions against us and/ enablement efforts have ensured smooth transition to
or our employees with possible consequences for our remote working.
corporate reputation. Changes to laws and regulations

CRISIL’s business processes are automated through
could have a material impact on the cost of doing
bespoke business applications that capture and
business. CRISIL is committed to complying with the laws
maintain information regarding business processes,
and regulations of the countries in which it operates. In
client agreements, reports generated and assignments
specialist areas the relevant teams at global, regional or
delivered, thus creating an adequate database for our
local levels are responsible for setting detailed standards
knowledge. The technology used by the Company at all
and ensuring that all employees are aware of and comply
locations provides for redundancy and disaster recovery.
with regulations and laws relevant to their roles. Our
For critical business processes, the business teams have
legal and regulatory specialists are heavily involved
defined a business continuity plan and have tested it with
in monitoring and reviewing our practices to provide
the help of the IT team. The technology department keeps
reasonable assurance that we remain aware of and in
abreast of the changes and suitably undertakes projects
line with all relevant laws and legal obligations. Our tax
for technology upgradation to keep the infrastructure
principles provide overarching governance and our tax
current and to provide for redundancy.
experts set out the controls established to assess and

72
Annual Report 2020

7. Internal audit and internal financial controls system Pursuant to the requirement of amendments in

Companies Act 2013, the Company has institutionalised
The Audit Committee provides oversight of the Company’s
internal financial controls system. Accordingly, key risks
internal audit process. The Audit Committee reviews and
and controls across all businesses and functions are
concurs in the appointment, replacement, performance
identified and gaps, if any, are remediated.
and compensation of the Company’s internal auditor and
approves internal audit’s annual audit plan and budget.
The Audit Committee also receives regular updates on the
audit plan’s status and results including reports issued

Corporate Overview
by the internal auditor and the status of management’s
corrective actions.

Statuory Reports
Financial Statements

73
CRISIL Limited

Independent Auditors’ Certificate on

Corporate Governance
To the Members of CRISIL Limited Institute of Chartered Accountants of India (‘ICAI’) and
Guidance Note on Reports or Certificates for Special
1. This certificate is issued in accordance with the terms of Purposes issued by the ICAI which requires that we
our engagement letter dated 13 April 2020. comply with the ethical requirements of the Code of
2. 
We have examined the compliance of conditions of Ethics issued by the ICAI.
corporate governance by CRISIL Limited (‘the Company’) 6. 
We have complied with the relevant applicable
for the year ended on 31 December 2020, as stipulated in requirements of the Standard on Quality Control (SQC) 1,
Regulations 17 to 27, clauses (b) to (i) of Regulation 46(2) Quality Control for Firms that Perform Audits and Reviews
and paragraphs C, D and E of Schedule V of the Securities of Historical Financial Information and Other Assurance
and Exchange Board of India (Listing Obligations and and Related Services Engagements.
Disclosure Requirements) Regulations, 2015 (‘Listing
Regulations’). Opinion
Management’s Responsibility 7. Based on the procedures performed by us and to the best
of our information and according to the explanations
3. The compliance of conditions of corporate governance is provided to us, in our opinion, the Company has complied,
the responsibility of the management. This responsibility in all material respects, with the conditions of corporate
includes the designing, implementing and maintaining governance as stipulated in the Listing Regulations
operating effectiveness of internal control to ensure during the year ended 31 December 2020.
compliance with the conditions of corporate governance
as stipulated in the Listing Regulations. We state that such compliance is neither an assurance
as to the future viability of the Company nor the efficiency
Auditor’s Responsibility or effectiveness with which the management has
4. Pursuant to the requirements of the Listing Regulations, conducted the affairs of the Company.
our responsibility is to express a reasonable assurance Restriction on use
in the form of an opinion as to whether the Company has
complied with the conditions of corporate governance as 8. This certificate is issued solely for the purpose of
stated in paragraph 2 above. Our responsibility is limited complying with the aforesaid regulations and may not be
to examining the procedures and implementation thereof, suitable for any other purpose.
adopted by the Company for ensuring the compliance For Walker Chandiok & Co LLP
with the conditions of corporate governance. It is neither Chartered Accountants
an audit nor an expression of opinion on the financial Firm Registration No. 001076N/N500013
statements of the Company.
5. We have examined the relevant records of the Company Khushroo B. Panthaky
in accordance with the applicable Generally Accepted Partner
Auditing Standards in India, the Guidance Note on Place: Mumbai  Membership No.: 042423
Certification of Corporate Governance issued by the Date: 11 February 2021  UDIN: 21042423AAAABF6948

Managing Director & CEO’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

Ashu Suyash
Managing Director & CEO
Mumbai, February 11, 2021  DIN: 00494515

74
 Annual Report 2020

Report of the Directors

on Corporate Governance
At CRISIL, corporate governance is a reflection of the Notes:

Corporate Overview
principles embedded in its values, policies and day-to-day
1. Ms Arundhati Bhattacharya (DIN: 02011213) tendered
business practices, leading to sustainable, value-driven
her resignation as an Independent Director of the
growth of the Company. CRISIL maintains the highest
Company with effect from April 15, 2020, on account of
standards of corporate governance and disclosure practices
accepting a full-time executive role in another company.
and is committed to transparency in all its dealings. Our
Ms Bhattacharya has confirmed that there were no other
vision, mission and values are integrated into all our offerings
material reasons for her resignation other than the one
and operations across levels to provide transparent and
stated above.
unbiased analytical data and solutions to investors, clients,
policymakers and other stakeholders. A strict regard for the 2. The Board of Directors has appointed Ms Shyamala
mission, vision and values, together with our endeavour for Gopinath (DIN: 02362921) as an Independent Director of
consistent growth, culture of innovation and global footprint, the Company with effect from July 10, 2020.
helps us create value for our stakeholders.
3. Ms Ashu Suyash (DIN: 00494515) was re-appointed as
The Directors present below the Company’s policies and Managing Director and CEO, with effect from June 1,
practices on corporate governance. 2020.

Statuory Reports
4. Mr Martin Fraenkel (DIN: 08410263) who was appointed
A. Board of Directors as an Additional Director of the Company with effect
from April 18, 2019, was appointed as a Non-Executive
Size and composition of the Board
Director at the last Annual General Meeting held on
The Board of Directors has eight members, of which, seven August 28, 2020 and is liable to retire by rotation.
(87.5%) are Non-Executive Directors and 37.5% represent
Percentage of Board positions
women directors. Four (50%) of the eight Board members are
Independent Directors. The Chairman of the Board is a Non-

57
Executive Director. As per the Articles of Association of the
Company, the Board can have up to 15 members. None of the
directors are related to any other director on the Board.
The composition of the Board of Directors of the Company as
on December 31, 2020, was as follows: 37%

Financial Statements
Category Name of the Director
Non-Executive Chairman Mr John L Berisford
50%
(DIN: 07554902)
Independent, Non-Executive Mr M Damodaran
Directors (DIN: 02106990)
Ms Vinita Bali
(DIN: 00032940)
13%
Mr Girish Paranjpe
(DIN: 02172725)
Ms Shyamala Gopinath
Non-Executive, Independent Directors
(DIN: 02362921)
Non-Executive Directors Mr Ewout Steenbergen Executive Directors
(DIN: 07956962)
Non-Executive Directors
Mr Martin Fraenkel
(DIN: 08410263)
Managing Director & Chief Ms Ashu Suyash
Executive Officer (DIN: 00494515)

75
CRISIL Limited

Criteria for Board membership

The Board has adopted the Nomination and Remuneration Policy to ensure that the Board composition is balanced with the
requisite skillsets, so that the Company benefits from new insights, guidance and challenges to business proposals. The
Policy outlines the appointment criteria and qualifications of the Directors on the Board of CRISIL and the matters related to
remuneration of the Directors. The said Policy is available on the Company’s website at [Link]
[Link].
The brief profiles of Directors forming part of this Annual Report gives an insight into the education, expertise, skills and
experience of CRISIL Directors, thus bringing in diversity to the Board’s perspectives. In terms of the requirement of the Listing
Regulations, the Board has identified the core skills/expertise/competencies of the Directors in the context of the Company’s
business for effective functioning and as available with the Board. These are as follows:

John Berisford

M Damodaran

Ashu Suyash
Steenbergen
Vinita Bali

Shyamala
Gopinath
Paranjpe

Fraenkel
Martin
Ewout
Girish
STRATEGIC ORIENTATION – Ability to think expansively,
√ √ √ √ √ √ √ √
evaluate alternatives and make choices
COMMERCIAL ORIENTATION – Understanding of business
√ √ √ √ √ √
model and how the business makes money
CUSTOMER ORIENTATION – Creating compelling value
√ √ √ √
propositions for customers as the differentiating attribute
PEOPLE ORIENTATION – Track record and understanding
of what motivates and inspires people to deliver superior √ √ √ √ √ √
performance
TECHNOLOGY & BUSINESS TRANSFORMATION – Knowledge
and understanding of how technology can be leveraged to √ √
produce competitively superior results and stay ahead
EXPERIENCE IN M&A – Ability to identify, value and coalesce
√ √ √ √
acquisitions and mergers
GLOBAL BUSINESS EXPERIENCE – Experience of overseeing
and managing businesses across multiple countries and √ √ √ √ √
environments
KNOWLEDGE OF FINANCIAL MARKETS – Understanding
of Indian and global trends and challenges across banking
√ √ √ √
and securities markets, other credit rating agencies, asset
management and advisory firms
GOVERNANCE & REGULATION – Experience of corporate
governance; and understanding of regulatory environment across
√ √ √
banking and securities laws, data protection and privacy and cyber
security for India and countries where business is transacted
STAKEHOLDER MANAGEMENT – Experience of dealing with
government officials, regulators, customers, boards, partners
√ √ √ √ √ √
and suppliers, employees; and broader community for
corporate social responsibility agenda
None of the Directors is a relative of an Executive Director or of a Non-Executive Director.
Certificate from Practicing Company Secretary regarding Non-Debarment and Non-Disqualification of Directors
The Company has obtained a certificate from M/s Makarand M Joshi & Co., Practicing Company Secretaries confirming that
none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as
Director of the Company by the Securities and Exchange Board of India and Ministry of Corporate Affairs or any such authority
and the same forms part of this report as Annexure II.
Membership term
As per the Articles of Association of the Company, at least two-thirds of the Board members shall be retiring Directors, excluding
Independent Directors. One-third of such Directors are required to retire every year and if eligible, the retiring directors qualify
for re-appointment. The Managing Director is appointed by the shareholders for a period of five years but can be reappointed

76
Annual Report 2020

on completion of the term, if eligible. The employment may be terminated by either party by giving three months’ notice.
Independent Directors shall hold office for up to two terms of five years each.
Succession policy
The Board constantly evaluates the contribution of its members and recommends to shareholders their re-appointment if
thought fit, upon expiry of their respective tenures. The Nomination and Remuneration Committee of the Board regularly
reviews succession planning and competency planning priorities of the Board and Senior Management.
The Board has adopted a retirement policy for its members. The maximum age of retirement for Executive Directors is 60 years,

Corporate Overview
provided that the term of the person holding this position may be extended beyond the age of 60 years with the approval
of shareholders by passing a special resolution based on the explanatory statement annexed to the notice for such motion
indicating the justification for extension of appointment beyond 60 years.
Membership of other Boards
Independent Directors are expected not to serve on the Boards of competing companies. No Director shall hold office as a
Director in more than twenty companies, of which, not more than ten shall be public companies and not more than seven shall
be listed companies. No Director of the Company shall serve on more than ten committees or can act as a Chairman of more
than five committees across all Indian public limited companies in which he/she is a Director. For the purpose of this limitation,
membership and chairmanship of the Audit Committee and Stakeholders’ Relationship Committee are only considered. No
Independent Director shall serve as Independent Director in more than seven listed companies or three listed companies in
case he/she is a Whole-time Director in any listed company.
Furthermore, every Director shall inform the Company about the directorship/committee positions he/she occupies in other
companies and notify the changes as and when they take place. The details of other directorships held by the Company’s
Directors as on December 31, 2020, are given below:

Statuory Reports
Name of the Director Directorship# Name of other listed companies Membership of Chairmanship
where he/she is a Director committees* of
Company Type of Directorship committees*
M Damodaran 10 Biocon Limited Independent Director 4 4
Larsen & Toubro Limited Independent Director
Tech Mahindra Limited Independent Director
Hero Motocorp Limited Independent Director
InterGlobe Aviation Limited Independent Director
Vinita Bali 3 Syngene International Independent Director 2 0
Limited
Girish Paranjpe 4 Axis Bank Limited Independent Director 2 2
Shyamala Gopinath 6 Colgate-Palmolive (India) Independent Director 1 5

Financial Statements
Limited
BASF India Limited Independent Director
HDFC Bank Limited^ Independent Director
Tata Elxsi Limited Independent Director
John L Berisford 1 - - 0 0
Ewout Steenbergen 1 - - 1 0
Martin Fraenkel 1 - - 1 0
Ashu Suyash 1 - - 1 0
# Covers private, public and listed companies, including CRISIL Limited, but excludes foreign companies and Section 8 companies.
* Memberships/chairmanships in audit committee and shareholders’/investors’ grievance committee of listed and public limited companies including CRISIL
Limited. Committee membership(s) and chairmanship(s) are counted separately.
^ Ms Shyamala Gopinath has retired as Chairperson of HDFC Bank Limited w.e.f January 1, 2021.

The Board members are highly involved in Company matters and the attendance record at such meetings, mentioned under
Part A of the Corporate Governance Report resonates the level of involvement, dedication and time allocated by the Board
members. Board members actively seek and attend trainings and off-cycle discussions on various topics pertinent to the
Company. Engaging discussions with experts on emerging trends in economy, future of work, cyber security and interactions
with clients and employees are some of the notable events where Board members have participated whole-heartedly. More
details of the Board sessions are available on the website of the Company at [Link]
[Link].
Details of shareholdings of Directors as on December 31, 2020
None of the Directors hold any shares in the Company. However, Ms Ashu Suyash, Managing Director & Chief Executive Officer,
has been granted 1,12,125 options under the Company’s ESOP Scheme 2014.

77
CRISIL Limited

Responsibilities
The Board takes decisions on long-term strategic planning, annual budget approvals and policy formulation. The Board also
has a strong operational oversight and reviews business plans, key risks and opportunities in the business context. The Board
meets at least four times every calendar year and the maximum time gap between any two meetings is not more than 120
days. During the year ended December 31, 2020, the Board met four times - on February 11, April 21, July 21 and October 20. A
detailed agenda, setting out the business to be transacted at the meeting(s), supported by detailed notes and presentations
and action taken reports from previous meetings, where applicable, is sent to each Director at least seven days before the
date of the Board and committee meetings. The Directors are also provided the facility of video conferencing to enable them
to participate effectively in the meeting(s), as and when required. During the year, in view of the Covid-19 related health risks
and travel restrictions, Board and committee meetings held after March 2020, took place through virtual participation from all
Board members and other participants. Adequate safeguards on security and confidentiality of discussions was ensured and
all procedures stipulated under the Secretarial Standards and other legal requirements were complied with in the conduct of
these meetings.
The Company has an executive committee comprising the Managing Director and a team of senior leaders with proper
demarcation of responsibilities and authority. The Managing Director is responsible for corporate strategy, planning, external
contacts and Board matters. The heads of individual businesses and the CRISIL leadership team are responsible for business
development, customer relations, day-to-day operations-related issues, profitability, productivity, recruitment and employee
retention in their divisions. Important decisions taken by the Board and its committees are promptly communicated to the
concerned leadership team for execution and status reports on actions taken are reported at subsequent meeting(s).
Attendance at the meetings of the Board of Directors during 2020 was as under:

Name of the Directors No. of Board meetings No. of Board meetings Last Annual General
held during the tenure attended out of those Meeting attendance
held
Mr M Damodaran 4 4 Yes
Ms Vinita Bali 4 3 Yes
Mr Girish Paranjpe 4 4 Yes
Ms Arundhati Bhattacharya^ 1 1 NA
Ms Shyamala Gopinath$ 2 2 Yes
Mr John L Berisford 4 4 Yes
Mr Martin Fraenkel 4 4 Yes
Mr Ewout Steenbergen 4 4 Yes
Ms Ashu Suyash# 4 4 Yes
^ Ceased to be Director with effect from April 15, 2020
$ Appointed with effect from July 10, 2020, as an Independent Director
# Re-appointed as Managing Director & CEO with effect from June 1, 2020

Role of Independent Directors and familiarisation process

As trustees of shareholders, Independent Directors play a pivotal role in upholding corporate governance norms and ensuring
fairness in decision-making. Being experts in various fields, they also bring independent judgement on matters of strategy, risk
management, controls and business performance. The Directors’ Report contains the requisite disclosures regarding fulfilment
of the requisite independence criteria by CRISIL’s Independent Directors.
At the time of appointing a new Independent Director, a formal letter of appointment is given to the Director, inter alia, explaining
the role, duties and responsibilities of the Director. The Director is also explained in detail the compliances required from him/
her under the Act, SEBI Regulations and other relevant regulations and his/her affirmation is taken with respect to the same.
By way of an introduction to the Company, presentations are also made to the newly appointed Independent Director on
relevant information such as overview of the various CRISIL businesses, offering, market and business environment, growth
and performance, organisational set-up of the Company, governance and internal control processes.
Ongoing familiarisation aims to provide insights into the Company and the business environment to enable the Independent
Directors to be updated of newer challenges, risks and opportunities relevant in the Company’s context and to lend perspective
to the strategic direction of the Company. The Company’s policy of conducting the Familiarisation Programme and the details
of familiarisation programmes imparted to Independent Directors during 2020 have been disclosed on the website of the
Company at [Link]
The above initiatives help the Director to understand the Company, its business and the regulatory framework in which the
Company operates and equips him/her to effectively discharge his/her role as a Director of the Company.
Directors are covered under the Directors & Officers’ Liability Insurance Policy and the terms of the same have been reviewed
by the Board.
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Annual Report 2020

Remuneration policy
1) Remuneration to Non-Executive Directors
Non-Executive Directors are paid sitting fees for each meeting of the Board or its committees attended by them and are
also eligible for commission. The commission payable to each Non-Executive Director is determined by the Board, based on
the Company’s performance, prevailing norms and roles and contributions of Board members. In terms of a shareholders’
resolution passed on April 20, 2017, the Company can pay remuneration not exceeding 1% of the net profits to the Non-
Executive Directors. The Non-Executive Directors have not been granted any stock options of the Company.
2) Managing Director

Corporate Overview
Ms Ashu Suyash, Managing Director & CEO, has signed an agreement containing the terms and conditions of employment.
The agreement is for a term of five years, but either the Company or the Managing Director may generally terminate the
agreement upon three months’ notice to the other party. She is not eligible for any severance fee.
The remuneration and reward structure for Managing Director comprises two broad components — short-term remuneration
and long-term rewards. The remuneration package of Ms Ashu Suyash comprises a fixed salary, allowances, perquisites,
reimbursements and retirement benefits and a variable pay to be determined by the Board on the recommendation of
the Nomination and Remuneration Committee. Ms Suyash is eligible for benefits under any long-term incentive plan,
stock option plan, excess contribution and other benefits in accordance with the rules of the Company applicable to all
employees.
The long-term incentives are in the form of performance-linked deferred cash earnouts linked to Company’s performance
as measured by EPS CAGR over the next 3 years. Since the LTIP is based on achievement of the criteria, the financial impact
is measured based on actuarial valuations. Hence, the precise long-term incentives component for the MD cannot be
stated and will be disclosed upon these becoming due and payable as a part of compensation for the year.

Statuory Reports
Ms Suyash has been granted options under the Company’s ESOP Schemes as under :

Plan Date Nos. Price Remarks

Employee Stock Option June 1, 2015 71,507 Rs 2,101.10 These options will vest in three equal tranches in the
Scheme – 2014 third, fourth and fifth year from the grant and can be
exercised after two years from each vesting
Employee Stock Option April 4, 2018 19,562 Rs 1,841.35 These options will vest in three equal tranches in
Scheme – 2014 second, third and fourth year from the grant and can
be exercised after two years from each vesting
Employee Stock Option April 16, 2019 21,056 Rs 1,568.85 These options will vest in three equal tranches in
Scheme – 2014 second, third and fourth year from the grant and can
be exercised after two years from each vesting

Financial Statements
The Nomination and Remuneration Committee determines the remuneration of Managing Director. The detailed policy
of the Company on the Nomination and Remuneration is on the Company website at [Link]
investors/[Link]
Sitting fees and commission paid to Non-Executive Directors
(Rupees)

Name of Directors Sitting fees Commission Total

Mr M Damodaran 10,80,000 33,00,000 43,80,000
Ms Vinita Bali 10,35,000 33,00,000 43,35,000
Mr Girish Paranjpe 10,70,000 33,00,000 43,70,000
Ms Arundhati Bhattacharya^ 1,05,000 9,63,000 10,68,000
Ms Shyamala Gopinath** 2,40,000 16,50,000 18,90,000
Mr John L Berisford Nil* Nil * Nil *
Mr Ewout Steenbergen Nil* Nil * Nil *
Mr Martin Fraenkel Nil* Nil * Nil *
TOTAL 35,30,000 1,25,13,000 1,60,43,000
* Since April 2015, S&P Global has waived the sitting fees and commission payable to its nominees
^ Ceased to be Director with effect from April 15, 2020
** Appointed with effect from July 10, 2020

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CRISIL Limited

Remuneration paid to the Managing Director & CEO for the year ended December 31, 2020
(Rupees)
Name Ms Ashu Suyash
Salary* 3,73,27,858
Variable pay 2,14,50,000
Provident fund 16,87,102
Perquisites 28,81,007
Appointment valid till May 31, 2025
*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 the same is not
included above.

Besides the above, any pecuniary transaction, if so undertaken Name Category Position Number of meetings
between a Director and the Company in the ordinary course of during 2020
business is reflected in the related party disclosure in the notes Held Attended
to the financial statements. Directors holding Board positions during out of
the those held
in subsidiaries may be paid sitting fees and commission for
tenure
performance of Directorial duties by the respective Boards.
Mr M Independent, Chairman 6 6
Damodaran Non-executive
B. Board committees Ms Vinita Independent, Member 6 6
Bali Non-executive
The Board has constituted committees consisting of Mr Girish Independent, Member 6 6
Executive and Non-Executive Directors to focus on the critical Paranjpe Non-executive
functions of the Company. Mr Martin Non-executive Member 6 6
As on December 31, 2020, the Company had the following Fraenkel
committees: The Audit Committee invites the executives of the Company
1. Audit Committee as it considers appropriate (particularly the head of the
finance function), representatives of statutory auditors and
2. Risk Management Committee
representatives of internal auditors to its meetings.
3. Nomination and Remuneration Committee
Role of the Audit Committee
4. Stakeholders’ Relationship Committee
5. Corporate Social Responsibility Committee The terms of reference for the Audit Committee are broadly
as under:
Each committee has the authority to engage outside experts,
advisors and counsels to the extent it considers appropriate 1) Oversight of the Company’s financial reporting process
to assist in its function. Minutes of proceedings of committee and the disclosure of its financial information to ensure
meetings are circulated to the Directors and placed before that the financial statement is correct, sufficient and
the Board Meeting for noting thereat. credible

1. Audit Committee 2) 
Recommending the appointment, remuneration and
terms of appointment of auditors of the Company
The Audit Committee of the Company is constituted in
line with the provisions of Section 177 of the Companies 3) Approval of payment to statutory auditors for any other
Act, 2013, read with Regulation 18 of the Securities services rendered by the statutory auditors
and Exchange Board of India (Listing Obligations and 4) Reviewing, with the management the annual financial
Disclosure Requirements) Regulations, 2015. The Audit statements and the auditor’s report thereon, before
Committee comprises four Non-Executive Directors submission to the board for approval, with particular
who are well versed in financial matters and corporate reference to;
laws. The Audit Committee met six times in 2020 – on
a. 
Matters required to be included in Director’s
February 10, April 20, June 19, July 20, October 20 and
Responsibility Statement included in the Board’s
December 14. The necessary quorum was present for
report
all the meetings. The Chairman of the Audit Committee
was present at the last Annual General Meeting of the b. Changes, if any, in accounting policies and practices
Company held on August 28, 2020. The composition of and reasons for the same
the Committee during 2020 and the details of meetings
c. 
Major accounting entries based on exercise of
held and attended by the directors are as under:
judgment by the management

80
Annual Report 2020

d. Significant adjustments made in the financial In line with its terms of reference, during 2020, the Audit
statements arising out of audit findings Committee, at its each meeting reviewed operations audit
reports for businesses pursuant to audits undertaken by
e. Compliance with listing and other legal requirements
internal auditors under the audit plan approved at the
relating to financial statements
commencement of the year. The quarterly financial results
f. Disclosure of any related party transactions were reviewed by the Committee before submission to the
Board. Independent sessions were held with statutory and
g. Qualifications in the draft audit report
internal auditors to assess the effectiveness of the audit
5) Reviewing, with the management, the quarterly financial process. The Committee reviewed the adequacy of internal

Corporate Overview
statements before submission to the Board for approval financial controls on a Company-wide basis and provided its
6) Reviewing, with the management, statement of uses and recommendations on internal control processes to the Board.
application of funds raised through an issue, statement As a special action, the Committee conducted a thematic
of funds utilised for other purposes and report of review of audit findings and improvement trends during the
monitoring agency year. The Committee also reviewed the system and processes
in place for risk management, analytical processes, insider
7) 
Review and monitor the auditors’ independence and trading compliance and information technology. The
performance and effectiveness of audit process Committee discussed the use of evolving techniques such as
8) Approval of any subsequent modification of transactions agile auditing practices and other efficiencies for continuous
of the Company with related parties improvement of audit procedures. On a quarterly basis, the
Committee continues to review whistleblower complaints
9) Scrutiny of inter-corporate loans and investments with corrective actions and controls put in place therefor,
10) Valuation of undertakings or assets of the Company, material litigations/notices and related-party transactions.
wherever it is necessary 2. Risk Management Committee

Statuory Reports
11) Evaluation of internal financial controls and risk The Risk Management Committee of the Company is
management systems constituted in line with the provisions of Regulation 21 of the
12) 
Reviewing, with the management, performance of Securities and Exchange Board of India (Listing Obligations
statutory and internal auditors, adequacy of the internal and Disclosure Requirements) Regulations, 2015.
control systems The broad terms of reference of the Risk Management
13) Reviewing the adequacy of internal audit function, if any, Committee are:
including the structure of the internal audit department, 1) 
Oversight on the Risk Management Policy, Risk
staffing and seniority of the official heading the Management Framework and processes
department, reporting structure coverage and frequency
of internal audit Review and monitoring of operational, strategic risks
2) 
and cyber risks, including, but not limited to, sectoral
14) Discussion with internal auditors on any significant developments, risk related to market, competition,

Financial Statements
findings and follow up there on foreign exchange, political and reputational risks, client
15) Reviewing the findings of any internal investigations by the confidentiality, data security, disruptive technologies,
internal auditors in matters where there is suspected fraud change management, evolving regulations and cyber
or irregularity or a failure of internal control systems of a security
material nature and reporting the matter to the Board 3) Review of the progress and effectiveness of mitigation
Discussion with statutory auditors before the audit
16)  actions planned, relating to existing and anticipated
commences about nature and scope of audit as well as emerging risks
post-audit discussion to ascertain any area of concern 4) 
Monitoring of critical risk exposures and reporting
17) 
To look into the reasons for substantial defaults in details of any significant developments relating to these
the payment to the depositors, debenture holders, exposures to the Board
shareholders (in case of non-payment of declared 5) Performing such other functions as may be necessary or
dividends) and creditors appropriate for the performance of its oversight function.
18) To review the functioning of the whistleblower mechanism The Committee met twice in 2020 – on June 22 and December
19) Approval of the appointment of CFO 14. The necessary quorum was present for the meetings. The
Committee reviewed the risk management framework and
20) To review report submitted by the monitoring agency its operation and risk heat maps and deliberated over the
informing material deviations in the utilisation of issue mitigation plans for key risks. More details on the key risks
proceeds and to make necessary recommendations to and mitigation actions in respect thereto are provided in the
the Board, if, when and where applicable Management Discussion and Analysis Report.
21) Carrying out any other function as is mentioned in the
terms of reference of the Audit Committee

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CRISIL Limited

Name Category Position Number of meetings during 2020

Held during the Attended out of
tenure those held
Mr Girish Paranjpe Independent, Non-executive Chairman 2 2
Ms Arundhati Bhattacharya^ Independent, Non-executive Member NA NA
Ms Shyamala Gopinath** Independent, Non-executive Member 1 1
Ms Ashu Suyash Managing Director & CEO Member 2 2
^ Ceased to be Member with effect from April 7, 2020
** Appointed as Member with effect from July 10, 2020

3. Nomination and Remuneration Committee

The broad terms of reference of the Nomination and Remuneration Committee are:
• Periodically reviewing the size and composition of the Board to ensure that it is structured to make appropriate
decisions, with a variety of perspectives and skills
• Formulating the criteria determining qualifications, positive attributes and independence of a Director and
recommending candidates to the Board
• Establishing and reviewing Board and senior executive succession plans
• Evaluating Board Performance
• Assisting the Board in ensuring Board nomination process with the diversity of gender, thought, experience, knowledge
and perspective in the Board
• Reviewing and making recommendations to the Board on:
- the remuneration of the Managing Director, Whole-time Directors and KMPs
- the total level of remuneration of non-executive directors and for individual remuneration for non-executive
directors and the Chairman
- the remuneration policies for all employees including base pay, incentive payments, equity awards, retirement
rights and service contracts
The Nomination and Remuneration Committee met four times in 2020 – on February 10, April 1, April 17 and July 6. The
necessary quorum was present for all the meetings. In terms of its mandate, during 2020, the Committee focused on review
of initiatives related to talent acquisition and management, succession planning, employee engagement and employee
compensation. The Chairperson of the Nomination and Remuneration Committee was present at the last Annual General
Meeting of the Company held on August 28, 2020. The composition of the Committee during 2020 and the details of
meetings held and attended by the directors are as under:

Name Category Position Number of meetings during 2020

Held during the Attended out of
tenure those held
Ms Vinita Bali Independent, Non-executive Chairperson 4 4
Mr John L Berisford Non-executive Member 4 4
Mr M Damodaran Independent, Non-executive Member 4 4
The Nomination and Remuneration Policy devised in accordance with Section 178(3) and (4) of the Companies Act, 2013
has been published on the Company’s website, [Link]
Further, the details of remuneration paid to all the directors and the other disclosures required to be made under the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, have been
provided in the previous section of this report – Board of Directors.
4. Stakeholders’ Relationship Committee
The Stakeholders’ Relationship Committee periodically reviews the status of shareholder grievances and their redressal.
The Committee reviews adherence to the service standards for investors adopted by CRISIL’s Registrar & Share Transfer
Agent and various measures and initiatives taken for ensuring timely receipt of dividend warrants/annual reports/
statutory notices by the shareholders of the Company. The Committee also reviews complaints from all stakeholders
of the Company, including customers, employees and vendors/business partners. Through this process, the Committee
reviews and steers improvements in relation to service delivery, quality and other issues pertaining to other stakeholders
as well. The Committee met four times in 2020 – on February 10, April 20, July 17 and October 15. The necessary quorum

82
Annual Report 2020

was present for all the meetings. The Chairman of the Committee was present at the last Annual General Meeting of the
Company held on August 28, 2020.
The composition of the Committee during 2020 and the details of meetings held and attended by the directors are as
under:

Name Category Position Number of meetings during 2020

Held during Attended out of
the tenure those held
Ms Arundhati Bhattacharya^ Independent, Non-executive Chairperson 1 1

Corporate Overview
Mr Girish Paranjpe** Independent, Non-executive Chairman 3 3
Mr Ewout Steenbergen Non-executive Member 4 4
Ms Ashu Suyash Managing Director & CEO Member 4 4
^ Ceased to be Chairperson and Member with effect from April 7, 2020
** Appointed as Chairman and Member with effect from April 7, 2020

The details of shareholders’ complaints received and redressed during the year are provided in Section D of this report.
5. Corporate Social Responsibility Committee
The broad terms of reference of the Corporate Social Responsibility (CSR) Committee are:
• Formulate, monitor and recommend to the Board, the CSR Policy
• Recommend to the Board, modifications to the CSR policy as and when required
• Recommend to the Board, the amount of expenditure to be incurred on the activities undertaken

Statuory Reports
• Review the performance of the Company in the area of CSR including the evaluation of the impact of the Company’s
CSR activities
• Review the Company’s disclosure of CSR matters
• Consider other functions, as defined by the Board, or as may be stipulated under any law, rule or regulation including
the listing regulations and the Companies Act, 2013
The Committee met twice in 2020 – on June 19 and December 14. The necessary quorum was present for all the meetings.
The composition of the Committee during 2020 and the details of meetings held and attended by the directors are as
under:

Name Category Position Number of meetings during 2020

Held during Attended out of
the tenure those held

Financial Statements
Ms Vinita Bali Independent, Non-executive Chairperson 2 2
Mr Girish Paranjpe Independent, Non-executive Member 2 2
Ms Ashu Suyash Managing Director & CEO Member 2 2
The details of the Company’s CSR activities during the year are mentioned in the annexures to the Directors’ Report.
6. Meeting of Independent Directors
The Company’s Independent Directors met four times in 2020 – on February 10, April 21, July 21 and October 20, without
the presence of Managing Director & CEO, Non-Executive, Non-Independent Directors and the Management Team. The
meetings were conducted informally to enable the Independent Directors to discuss matters pertaining to the Company’s
affairs and put forth their combined views to the Board of Directors of the Company.
7. Performance evaluation
The Company has devised a mechanism for performance evaluation of directors. Its details have been included in the
Directors’ Report.

C. Shareholders
Means of communication
1. Quarterly and annual financial results are published in leading national and regional newspapers and displayed on the
Company’s website.
2. News releases, press releases and presentations made to investors and analysts are displayed on the Company’s website.

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CRISIL Limited

3. The Annual Report is circulated to all members and is also available on the Company’s website.
4. Material developments related to the Company that are potentially price-sensitive in nature or that could impact continuity
of publicly available information regarding the Company are disclosed to stock exchanges in terms of the Company’s Policy
for Disclosure of Material Information and are also available on the Company’s website.
5. The Company’s website contains information on the Company’s businesses, governance and important policies.
To serve the investors better and as required under Regulation 46(2)(j) in the Listing Regulations, the designated email
address for investor complaints is investors@[Link]. The email address of the Grievance Redressal Division is continuously
monitored by the Company’s compliance officer.
The Annual Report of the Company for the financial year 2020 has been emailed to the members whose email addresses
are registered with the depositories for communication purposes or are obtained directly from the members, as per Section
136 of the Companies Act, 2013 and Rule 11 of the Companies (Accounts) Rules, 2014. For other members, who have not
registered their email addresses, the Annual Report has been sent to their registered address. If any member wishes to get a
duly printed copy of the Annual Report, the Company will send the same, free of cost, upon receipt of request from the member.
The Company encourages its shareholders to subscribe to e-communication from the Company. For this purpose, shareholders
are requested to update their email ids in the forms prescribed by their respective depository participants for shares held in
demat form and write to the Company’s registrar and share transfer agent for email updation for shares held in physical mode.
Grievance redressal
The Board has appointed the Stakeholders’ Relationship Committee to review and redress complaints received from
shareholders. The Committee meets periodically to review the status of investor grievances received and redressed.
General body meetings: The location, time and venue of the last three Annual General Meetings are as under:

Nature of meeting Date and time

Venue Special resolutions passed
Thirty-First Annual April 17, 2018
Rangaswar Hall, 4th floor, Yashwantrao One Special Resolution was passed
General Meeting at 3.30 pmChavan Pratishthan, Gen. Jagannath regarding making investments, giving
Bhosale Marg, Next to Sachivalaya loans and providing securities beyond
Gymkhana, Mumbai 400 021 the prescribed limits
Thirty-Second Annual April 17, 2019 Rangaswar Hall, 4th floor, Yashwantrao None
General Meeting at 3.30 pm Chavan Pratishthan, Gen. Jagannath
Bhosale Marg, Next to Sachivalaya
Gymkhana, Mumbai 400 021
Thirty-Third Annual August 28, 2020 Video conferencing (VC) and/or other One Special Resolution was passed
General Meeting at 4.00 pm audio-visual means (OAVM), without the regarding appointment of Ms
in-person presence of shareholders Shyamala Gopinath as an Independent
Director of the Company
Disclosures
During the year, there were no related-party transactions that were materially significant and that could have a potential
conflict with the interests of the Company at large. Related-party transactions have been disclosed in the annexures to the
Directors’ Report, as required in terms of the provisions of the Companies Act, 2013.
There was no non-compliance by the Company and no penalties or strictures were imposed on the Company by the Stock
Exchange or Securities and Exchange Board of India (SEBI), or any statutory authority on any matter related to the capital
markets during the last three years.1
The Company has complied with all the mandatory requirements of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
The Company has also complied with the following discretionary requirements specified in Part E of Schedule II in terms of
Regulation 27(1):
i. Modified opinion(s) in Audit Report: Company’s financial statements have unmodified audit opinions.
ii. Reporting of internal auditors: The internal auditors of the Company directly report to the Audit Committee.

On January 31, 2018, vide a settlement order issued by SEBI, the Company, without admitting or denying the violations, settled proceedings in connection with a show
1

cause notice pertaining to alleged violation of certain provisions of the CRA regulations, for an amount of Rs 28.36 lakh.

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Annual Report 2020

CRISIL Code of Conduct

The Board of Directors of CRISIL has adopted the Code of Conduct for Directors and Senior Management, which is available on the
Company’s website, [Link] Affirmation regarding compliance with
the Code of Conduct by the CEO of the Company has been published elsewhere in this Annual Report. CRISIL Code of Ethics is
also available on the Company’s website, [Link]
Prohibition of insider trading
CRISIL has formulated a Code of Ethics and Trading Policy for Directors, Promoters and Promoter Group and Personal Trading

Corporate Overview
Policy for Employees to comply with SEBI (Prohibition of Insider Trading) Regulations, 2015 (Regulations). This policy is framed
adopting the standards set out in the Regulations to regulate, monitor and report trading by its employees to achieve compliance
with the said Regulations.
Vigil mechanism and Whistleblower Policy
The Company has a Whistleblower Policy for establishing a vigil mechanism for directors and employees to report genuine
concerns regarding unethical behaviour, grave misconduct, leak of unpublished price-sensitive information, actual or
suspected fraud, or violation of the Company’s Code of Conduct and Ethics Policy. The said mechanism also provides for adequate
safeguards against victimisation of persons who use such mechanism and makes provision for direct access to the Chairperson
of the Audit Committee in appropriate or exceptional cases. We affirm that no employee of the Company was denied access to the
Audit Committee. The said Whistleblower Policy has been hosted on the Company’s website, [Link]
[Link].
Policy for determining ‘material’ subsidiaries
As required under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,

Statuory Reports
2015, the Company has formulated a policy for determining ‘material’ subsidiaries, which has been uploaded to its website,
[Link]
Material unlisted subsidiary
During 2020, the Company had three of its overseas unlisted subsidiary companies as material subsidiaries in terms of its
policy on determination of material unlisted subsidiary companies. These are subject to special governance norms in terms
of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. However,
minutes of the meetings of the Board of Directors of all subsidiary companies are placed before the Board of Directors of CRISIL
Limited for their review and noting.
Policy against Sexual and Workplace Harassment
The Company values the dignity of individuals and strives to provide a safe and respectable work environment to all its
employees. The Company is committed to providing an environment, which is free of discrimination, intimidation and abuse.

Financial Statements
The Company believes that it is the responsibility of the organisation to protect the integrity and dignity of its employees and
also to avoid conflicts and disruptions in the work environment due to such cases.
The Company has complied with provisions relating to the Constitution of Internal Complaints Committee under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has a ‘Policy on redressal of Sexual Harassment’ for CRISIL. As per the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 (“Sexual Harassment Act”), the policy mandates strict confidentiality and
recognises the right of privacy of every individual. As per the policy, any employee may report a complaint to the Independent
Committee formed for this purpose. We affirm that adequate access was provided to any complainant who wished to register
a complaint under the policy.
During the year, we did not receive complaints from any CRISIL employee. One complaint received from an off-roll person was
resolved.
Related Party Transactions Policy
As required by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Company has formulated a Related Party Transactions Policy which can be accessed at [Link]
investors/[Link].
Record Management Policy
As required under Regulation 9 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Board of Directors of the Company has approved the Policy for Preservation of Documents.

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CRISIL Limited

Policy for determining materiality of an event or information and for making disclosures to Stock Exchanges
As required under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Board of Directors of the Company has approved the Policy for determining materiality of an event
or information and for making disclosures to the stock exchanges. It is available at [Link]
[Link]
The Board of Directors of the Company has authorised the Chief Financial Officer of the Company to determine materiality of
an event or information and for making disclosures to the stock exchanges under the said regulation.
Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information
Pursuant to Regulation 8 in Chapter IV of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,
2015, the Board of Directors has a ‘CRISIL Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive
Information’. The code is hosted on [Link].
Commodity price risk or foreign exchange risk and hedging activities
As such, the Company is not exposed to any commodity price risk and hence the disclosures under Clause 9(n) of Part C of
Schedule V in terms of the format prescribed vide SEBI Circular no SEBI/HO/CFD/CMD1/CIR/P/2018/0000000141 dated
November 15, 2018 is not applicable.
A detailed discussion on the foreign exchange risk and the Company’s hedging activities is given in the Management Discussion
& Analysis Report and the Notes to the Financial Statements.
Unclaimed equity shares
Under Regulation 39(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, read with Schedule VI thereof, the Company has opened a demat account in the name and style ‘CRISIL
Limited - Unclaimed Shares Suspense Account’ for credit of shares which were unclaimed as per these provisions.
As on December 31, 2020, 2,000 equity shares belonging to two shareholders were lying in the account. The voting rights on the
outstanding unclaimed shares as on date shall remain frozen until the rightful owners claim them by submitting the requisite
documentary proof of their identity to the Company’s Registrar & Share Transfer Agent, KFin Technologies Private Limited.
Total fees for all services paid to statutory auditors by the Company and its subsidiaries
Total fees paid by the Company and its subsidiaries on a consolidated basis to the statutory auditor, M/s. Walker Chandiok &
Co LLP (an affiliate of Grant Thornton network) and all entities in the network firm/network entity of which the statutory auditor
is a part, are as follows:

Particulars Amount (Rs in lakh)

Audit fees 241.00
Other services* 81.20
Total 322.20
*The other services fee includes certification fees for downstream investment, allotment of ESOP’s and for fulfilling certification requests from clients.

SEBI Complaints Redress System (SCORES)

The capital market regulator has a centralised web-based system to redress complaints named, SEBI Complaints Redress
System (SCORES). It enables investors to lodge and follow up complaints and track the status of redressal online on the website,
[Link] It also enables the market intermediaries and listed companies to receive
the complaints from investors against them, redress such complaints and report redressal. All the activities, from lodging of a
complaint to disposal, are carried out online automatically and the status of every complaint can be checked online at any time.
The Company has registered itself on SCORES and endeavours to resolve all investor complaints received through SCORES or
otherwise within 15 days of their receipt. During the year, the Company did not receive any investor complaint through SCORES.
Transfer of shares only in demat mode
As per SEBI norms, with effect from April 1, 2019, only transmission or transposition requests for transfer of securities shall be
processed in physical form. All other transfers shall be processed only in dematerialised [Link] procedure for dematerialisation
is available at [Link]
html.
Updation of KYC details
Efforts are underway to update Permanent Account Number (PAN) and bank account details of shareholder(s) as required by
the SEBI. CRISIL has sent communications in this regard to eligible shareholders. Shareholders have been requested to update
these details at the earliest.

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Annual Report 2020

D. General Shareholders Information:

1. Annual General Meeting
Date and time : April 20, 2021 at 4.00 p.m.
Venue : AGM will be held through video conferencing (VC) or
other audio-visual means (OAVM)
2. Calendar for financial reporting
First Quarter ending March 31, 2021 : In April 2021
Second Quarter ending June 30, 2021 : In July 2021

Corporate Overview
Third Quarter ending September 30, 2021 : In November 2021
Year ending December 31, 2021 : In February 2022
Newspapers where the results are published : Currently in Business Standard and Navshakti or any
other newspaper with a wide circulation. Copies of the
newspaper advertisements will also be submitted to the
stock exchanges
Websites where the financial results, shareholding : [Link], [Link] and [Link].
pattern, annual report etc. are uploaded com
3. Proposed final dividend : Final Dividend of Rs.14 per share having nominal value
of Re 1 each
4. Dates of Book Closure : April 1, 2021, to April 2, 2021 (both days inclusive)
5. Dividend payment date : April 26, 2021 (if dividend payment is approved at the
Annual General Meeting)
6. Listing details : The shares of the Company are listed on:

Statuory Reports
National Stock Exchange of India Ltd, (NSE) Exchange
Plaza, 5th Floor, Plot No C/1, G Block,
Bandra-Kurla Complex, Bandra (E), Mumbai 400 051
BSE Ltd,
PJ Towers, Dalal Street, Fort,
Mumbai 400 001
The Company has paid listing fees to both the exchanges
and complies with the listing requirements.
7. Stock codes : NSE – CRISIL
BSE – 500092
ISIN : INE007A01025
CIN : L67120MH1987PLC042363
8. Registrar and Share Transfer Agents : KFin Technologies Private Limited

Financial Statements
Unit: CRISIL Limited
Selenium Tower B, Plot 31-32,
Gachibowli Financial District,
Nanakramguda, Hyderabad 500032
Email: [Link]@[Link]
Phone: +91 40 6716 2222
Toll Free No: 1-800-34-54-001
Fax: +91 40 6716 1567
9. Compliance Officer : Ms Minal Bhosale,
Company Secretary,
CRISIL House, Central Avenue,
Hiranandani Business Park,
Powai, Mumbai 400076
Phone: 022-3342 3000
Fax: 022-3342 3001
10. Depository system : As on December 31, 2020, 99.90% of the Company’s
share capital is held in dematerialised form. For any
assistance in converting physical shares to electronic
form, investors may approach KFin Technologies Private
Limited at the address given above.

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CRISIL Limited

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 shareholding : Members are requested to notify their Depository
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 Account Number (PAN) : SEBI has mandated submission of PAN by every
participant in securities market. Members holding
shares in electronic form are, therefore, requested to
submit the PAN to their Depository Participants with
whom they are maintaining their demat accounts.
Members holding shares in physical form are requested
to submit their PAN details to the Registrar.
14. Investor complaints to be addressed to : Registrars and Share Transfer Agents or to Ms Minal
Bhosale, Company Secretary, at the above mentioned
addresses.
15. Email ID of the Grievance Redressal Division : investors@[Link]

Shareholders whose shares are in physical form and wish to make/change a nomination in respect of their shares in the
Company, as permitted under Section 72 of the Companies Act, 2013, may submit to RTA the prescribed Forms SH-13/SH-14.

16. Category-wise shareholding pattern as on December 31, 2020

Sr. No. Category No. of shares % holding
1. Group holding of S&P Global, Inc: 4,87,32,586 67.13
- S&P India LLC
- Standard & Poor’s International, LLC
- S&P Global Asian Holdings Pte. Ltd.
2. Individuals (includes trusts) 89,46,289 12.32
3. FIIs/QFIs/FPIs 51,92,536 7.15
4. Insurance Companies 68,51,996 9.44
5. Mutual Funds 13,11,183 1.81
6. Financial Institutions/Banks 90,754 0.13
7. Bodies Corporate 2,27,676 0.31
8. NRIs/Foreign Nationals 4,03,280 0.56
9. Directors - -
10. Clearing Members 10,793 0.01
11. Alternate Investment Funds 1,39,046 0.19
12. Investor Education and Protection Fund 40,152 0.06
13. Qualified Institutional Buyers 6,46,999 0.89
TOTAL 7,25,93,290 100.00

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Annual Report 2020

Category-Wise Shareholding Pattern as on December 31, 2020

0.56 0.01 0.06

0.13
0.31 0.19
1.81 0.89
0.56 0.01 0.06
0.13 S&P Global companies
9.44 0.19
0.31 Individuals/Trusts
1.81 0.89
FIIs/QFIs/FPIs
7.15 9.44 S&P Global companies
Insurance Companies
Individuals/Trusts
Mutual Funds

Corporate Overview
FIIs/QFIs/FPIs
Bodies Corporate
7.15 Insurance Companies
Financial Institutions/Banks
Mutual Funds
12.32 NRIs/Foreign Nationals
Bodies Corporate
Clearing Members
Financial Institutions/Banks
Directors
12.32 NRIs/Foreign Nationals
IEPF
Clearing Members
Alternate Investment Funds
67.13 Directors
QIB
IEPF
Alternate Investment Funds
67.13 QIB

17. Distribution of shareholding as on December 31, 2020

No. of shareholders As % of total no. of No. of shares As % of total no. of
Range of equity shares held
shareholders shares
1 – 5,000 32,072 99.36 31,99,862 4.41

Statuory Reports
5,001 – 10,000 66 0.20 4,80,203 0.66
10,001 – 20,000 42 0.13 6,20,774 0.86
20,001 – 30,000 18 0.06 4,51,258 0.62
30,001 – 40,000 10 0.03 3,56,450 0.49
40,001 - 50,000 9 0.03 3,98,031 0.55
50,001 – 1,00,000 25 0.08 18,61,387 2.56
1,00,000 and above 35 0.11 6,52,25,325 89.85
Total 32,277 100.00 7,25,93,290 100.00

18. Members holding more than 1% of the paid-up share capital as on December 31, 2020
Sr. No. Name of the shareholder No. of shares % holding
1. Group holding of S&P Global, Inc: 4,87,32,586 67.13
- S&P India LLC

Financial Statements
- Standard & Poor’s International, LLC
- S&P Global Asian Holdings Pte. Ltd.
2. Jhunjhunwala Rakesh & Rekha 39,75,000 5.48
3. Life Insurance Corporation of India 43,21,911 5.95
4. General Insurance Corporation of India 24,00,000 3.31
Members holding more than 1% as on December
3.31 31, 2020
5.95

5.48 3.31
5.95
Group holding of S&P Global, Inc.
5.48
Life Insurance Corporation of India
Group holding of S&P Global, Inc.
Jhunjhunwala Rakesh and Rekha
Life Insurance Corporation of India
67.13 General Insurance Corporation of India
Jhunjhunwala Rakesh and Rekha

67.13 General Insurance Corporation of India

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 CRISIL Limited

19. Status report of shareholder complaints during the year ended December 31, 2020
Nature of complaints No. of complaints received
Outstanding as on January 1, 2020 0
Non-receipt of dividend 10
Non-receipt of shares 2
Non-receipt of Annual Report 2
Issues relating to General Meeting 0
Complaints received through SCORES/stock exchanges/the Ministry of Corporate 5
Affairs/regulatory authorities
TOTAL 19
The Company addressed all the investor complaints received as indicated above, except for one which was received towards
the year-end and resolved in January 2021.

20. Shares held in physical and dematerialised form as on December 31, 2020
The break-up of physical and dematerialised shareholding as on December 31, 2020, is presented graphically as follows:
Distribution of holdings - Demat and Physical
1.28% 0.10%

2 98.62%
NSDL

CDSL

PHYSICAL

Members who still hold share certificates in physical form are advised to dematerialise their shareholding to avail numerous
benefits, including easy liquidity, ease of trading and transfer, savings in stamp duty and elimination of any possibility of loss
of documents and bad deliveries.

21. Equity history since sub-division of shares

Date Particulars No. of shares Cumulative no. of shares
01.10.2011 No. of issued and fully paid-up equity shares of face value Re 1 7,09,68,440 7,09,68,440
each after stock split
04.01.2012 Extinguishment of shares consequent to buyback (-) 9,10,000 7,00,58,440
2012 Allotment of shares to employees on exercise of options granted (+) 1,77,300 7,02,35,740
2013 Allotment of shares to employees on exercise of options granted (+) 4,17,150 7,06,52,890
2014 Allotment of shares to employees on exercise of options granted (+) 7,04,165 7,13,57,055
2015 Allotment of shares to employees on exercise of options granted (+) 93,465 7,14,50,520
16.07.2015 Extinguishment of shares consequent to buyback (-) 5,11,932 7,09,38,588
17.10.2015 Allotment of shares to employees on exercise of options granted (+) 2,70,515 7,12,09,103
2016 Allotment of shares to employees on exercise of options granted (+) 1,26,255 7,13,35,358
2017 Allotment of shares to employees on exercise of options granted (+) 3,69,570 7,17,04,928
2018 Allotment of shares to employees on exercise of options granted (+) 4,10,854 7,21,15,782
2019 Allotment of shares to employees on exercise of options granted (+) 1,88,544 7,23,04,326
2020 Allotment of shares to employees on exercise of options granted (+) 2,88,964 7,25,93,290
1400.00
1200.00
1000.00
800.00
600.00
90
400.00
Annual Report 2020

22. Dividend
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’s Dividend Policy specifies the financial parameters that would be considered when declaring a dividend, the internal
and external factors that would be considered for declaring a dividend and the circumstances under which shareholders
can or cannot expect a dividend. The Policy has been uploaded to the Company’s website, [Link]/en/home/
investors/[Link]; it is also annexed herewith as Annexure I.
Modes of payment of dividend: Dividend is paid through the following two modes:

Corporate Overview
(a) Credit to the bank account via Electronic Clearing Service (ECS)/National Electronic Clearing Service (NECS)/SWIFT
transfer
(b) Despatch of physical dividend warrants/cheques
Tax on dividend: The Finance Act 2020 abolished Dividend Distribution Tax (DDT) and made dividend income taxable in the
hands of the recipient shareholders, with effect from April 1, 2020. CRISIL has made the necessary changes in its dividend
payment process in coordination with internal and external stakeholders such as RTA and bankers. The Company regularly
sends communication to its shareholders before each dividend, requesting them to submit the required documents for
claiming beneficial tax rates, if applicable.
ECS/NECS: CRISIL has extended the ECS/NECS facility to shareholders to enable them to receive dividend through
electronic mode in their bank account. The Company encourages members to make use of this facility as ECS/NECS
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. Investors may obtain the ECS/NECS mandate form from the FAQs link ([Link]

Statuory Reports
home/investors/shareholder-services/[Link]) on Investors section of the Company’s website, [Link].
Bank details for electronic shareholding: Members are requested to furnish complete details of their bank accounts,
including the bank’s MICR code, to their depository participants (DP). They are also requested to notify their DPs about
changes in bank details.
Unclaimed dividend: Dividends that are not encashed or claimed, within seven years from the date of its transfer to the unpaid
dividend account, will, in terms of the provisions of Section 124(5) of the Companies Act, 2013, be transferred to the Investor
Education and Protection Fund (IEPF) established by the Government. In respect of the transfers made after coming into effect
of the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, shareholders will be entitled to claim the dividend
transferred from the IEPF in accordance with such procedure and on submission of such documents as may be prescribed.
The details of unclaimed dividend as on December 31, 2020 and the dates when the dividend will be transferred to IEPF are as
follows:

Financial Statements
Sr. No. Dividend name Dividend per % Date of declaration/ Due date for
share (Rs) approval of dividend transfer to IEPF*
1. Unclaimed Final and Special Dividend 2013 10.00 1,000% Apr 17, 2014 May 18, 2021
2. Unclaimed 1st Interim Dividend 2014 3.00 300% Apr 17, 2014 May 18, 2021
3. Unclaimed 2nd Interim Dividend 2014 3.00 300% Jul 18, 2014 Aug 18, 2021
4. Unclaimed 3rd Interim Dividend 2014 4.00 400% Oct 17, 2014 Nov 17, 2021
5. Unclaimed Final & Special Dividend 2014 10.00 1,000% Apr 17, 2015 May 18, 2022
6. Unclaimed 1st Interim Dividend 2015 4.00 400% Apr 17, 2015 May 18, 2022
7. Unclaimed 2nd Interim Dividend 2015 4.00 400% Jul 17, 2015 Aug 17, 2022
8. Unclaimed 3rd Interim Dividend 2015 5.00 500% Oct 17, 2015 Nov 17, 2022
9. Unclaimed Final & Special Dividend 2015 10.00 1,000% Apr 19, 2016 May 20, 2023
10. Unclaimed 1st Interim Dividend 2016 5.00 500% Apr 19, 2016 May 20, 2023
11. Unclaimed 2nd Interim Dividend 2016 6.00 600% Jul 19, 2016 Aug 19, 2023
12. Unclaimed 3rd Interim Dividend 2016 7.00 700% Oct 14, 2016 Nov 14, 2023
13. Final Dividend 2016 9.00 900% Apr 20, 2017 May 20, 2024
14. Unclaimed 1st Interim Dividend 2017 6.00 600% Apr 20, 2017 May 20, 2024
15. Unclaimed 2nd Interim Dividend 2017 6.00 600% Jul 18, 2017 Aug 17, 2024
16. Unclaimed 3rd Interim Dividend 2017 6.00 600% Oct 17, 2017 Nov 16, 2024
17. Final Dividend 2017 10.00 1,000% Apr 17, 2018 May 17, 2025
18. Unclaimed 1st Interim Dividend 2018 6.00 600% Apr 17, 2018 May 17, 2025
19. Unclaimed 2nd Interim Dividend 2018 6.00 600% Jul 17, 2018 Aug 16, 2025
20. Unclaimed 3rd Interim Dividend 2018 7.00 700% Oct 16, 2018 Nov 15, 2025
21. Final Dividend 2018 11.00 1,100% Apr 17, 2019 May 17, 2026

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CRISIL Limited

Sr. No. Dividend name Dividend per % Date of declaration/ Due date for
share (Rs) approval of dividend transfer to IEPF*
22. Unclaimed 1st Interim Dividend 2019 6.00 600% Apr 17, 2019 May 17, 2026
23. Unclaimed 2nd Interim Dividend 2019 6.00 600% Jul 23, 2019 Aug 22, 2026
24. Unclaimed 3rd Interim Dividend 2019 7.00 700% Nov 08, 2019 Dec 08, 2026
25. Final Dividend 2019 13.00 1,300% Aug 28, 2020 Sep 28, 2027
26. 1.28%
Unclaimed 1st Interim Dividend 2020 0.10% 6.00 600% Apr 21, 2020 May 22, 2027
27. Unclaimed 2nd Interim Dividend 2020 6.00 600% Jul 21, 2020 Aug 21, 2027
28. Unclaimed 3rd Interim Dividend 2020 7.00 700% Oct 20, 2020 Nov 20, 2027
*Note:
1. Investors are requested to send in their claim at least 15 days prior to the due date for transfer to the IEPF to ensure payment of their dividend.

Transfer of shares to the IEPF

Pursuant to the provisions of the Companies Act, 2013, read with the IEPFNSDL Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016, CRISIL is required to transfer equity shares in respect ofCDSL
which dividends have not been claimed for
a period of seven years continuously, to the IEPF. The Company has transferred 2,010 shares to the IEPF during the year.
PHYSICAL
Details of these shares are available on the Company’s website, [Link].
Further, shares in respect of which dividends remain unclaimed progressively for seven consecutive years, will be reviewed
for transfer to the IEPF as required by law. The Company will transfer the said shares, after sending an intimation of the
proposed transfer in advance to the concerned shareholders, as well as publish a public notice in this regard. Names of
98.62%
such transferees will be available on the Company’s website, [Link].

23. Stock price and movement of the Company’s shares on National Stock Exchange of India Limited (NSE) and BSE
Limited (BSE) for January–December 2020:
NSE BSE
Month High (Rs) Low (Rs) Month High (Rs) Low (Rs)
January 1,978.70 1,663.15 January 1,980.00 1,665.00
February 1,770.00 1,472.00 February 1,770.90 1,475.00
March 1,570.00 1,052.70 March 1,569.35 1,083.50
April 1,494.95 1,160.50 April 1,491.00 1,161.00
May 1,567.35 1,357.00 May 1,573.50 1,355.00
June 1,665.50 1,389.90 June 1,664.65 1,387.00
July 1,809.70 1,611.05 July 1,805.00 1,617.15
August 1,911.00 1,564.00 August 1,909.00 1,636.30
September 1,872.00 1,700.00 September 1,871.50 1,692.00
October 2,123.90 1,690.00 October 2,121.90 1,680.00
November 2,124.00 1,907.05 November 2,125.00 1,902.30
December 2,014.90 1,870.00 December 2,008.00 1,840.05

Price movement of crisil share in 2020 on nse and bse vis-a-vis movement of cnx nifty and s&p sensex
1400.00
1200.00
1000.00
800.00
600.00
400.00
200.00
0.00

CRISIL S & P Sensex CNX Nifty

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Annual Report 2020

24. 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, subject to applicable regulations.
• 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.
• To receive dividends in due time, once approved in General Meetings or Board Meetings.
• To receive corporate benefits like rights, bonus etc. once approved.

Corporate Overview
• To apply to the National Company Law Tribunal 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]
[Link]/en/home/investors/shareholder-services/[Link]
Apart from the above rights, the shareholders also enjoy the following rights as a group:
• To appoint the Directors and Auditors of the Company.
• To requisition an Extraordinary General Meeting.
• To apply to the National Company Law Tribunal to investigate the affairs of the Company.
• To apply to the National Company Law Tribunal for relief in cases of oppression and/or mismanagement.

Statuory Reports
The above-mentioned rights may not necessarily be absolute.
Statutory disclosures
Directors state that there being no transactions with respect to the following items during the financial year under review,
no disclosure or reporting is required with respect to the same:
1. Details of utilisation of funds of Preferential Allotment/QIP
2. Disclosure in relation to recommendation made by any committee which was not accepted by the Board

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

John L. Berisford
Chairman
Mumbai, February 11, 2021 (DIN: 07554902)

Financial Statements

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CRISIL Limited

Annexure I to Corporate Governance

Report: Dividend policy
Policy for determining ‘dividend pay-out’ to shareholders
1. Purpose and scope
The purpose of this policy is to broadly specify external and internal factors including, financial parameters that will be
considered when declaring a dividend and the circumstances under which the shareholders of the Company may or may
not expect a dividend. The Board of Directors will refer to the policy when declaring/recommending dividends on behalf of
the Company.
The policy has been framed broadly in line with the provisions of the Companies Act and also taking into consideration the
guidelines issued by the Securities and Exchange Board of India (SEBI) to the extent applicable.
2. Decision framework
i. The circumstances under which shareholders can or cannot expect a dividend:
The Company has been consistently paying out dividends to shareholders and can be reasonably expected to continue
declaring more than 50% of standalone profit after tax in future unless the Company is constrained by insufficient
profits or if any internal or external factor or financial parameter indicated below becomes adverse or if there is any
likely requirement for business expansion or acquisition as determined by the Board
ii. The financial parameters that will be considered when declaring dividends:
a. Profit after tax
b. Positive cash flow after taking into consideration future business needs
c. Debt/EBITDA
iii Internal and external factors that would be considered for declaring dividends:
a. Business environment and trends in capital markets
b. Statutory regulations and guidelines
c. Profit earned during the year
d. Net worth
e. Company’s need for growth capital
f. Working capital requirements and contingency plan
g. Any other factor as deemed fit by the Board
iv. Utilisation of retained earnings shall be towards:
a. Business expansion and growth
b. Acquisition
c. Working capital requirements and contingencies
v. Provision with regard to various classes of shares:
Since the Company has issued only one class of equity shares with equal voting rights, all the members of the Company
are entitled to receive the same amount of dividend per share. The policy shall be suitably revisited at the time of issue
of any new class of shares depending upon the nature and guidelines thereof.
The Board of Directors shall have the power to recommend final dividend to the shareholders for their approval in the
general meeting of the Company. The Board of Directors shall have the absolute power to declare interim dividend
during the financial year, as and when they consider it fit.
3. Policy review
This policy shall be reviewed by the Board as and when any changes are to be incorporated owing to changes in regulations
or as may be felt appropriate by the Board. Any changes or modification in policy would be put up for approval of the Board
of Directors.
This policy is dated October 14, 2016.

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Annual Report 2020

Annexure II to Corporate Governance

Report: Certificate from Practising Company
Secretary regarding Non-Debarment and
Non-Disqualification of Directors

Corporate Overview
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015)
To,
The Members of
CRISIL Limited
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of CRISIL Limited
having CIN L67120MH1987PLC042363 and having registered office at CRISIL House, Central Avenue, Hiranandani Business
Park, Powai, Mumbai, Maharashtra, 400076 (hereinafter referred to as ‘the Company’), produced before us by the Company for
the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the
Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Statuory Reports
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal [Link]) as considered necessary and explanations furnished to us by the Company and its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the period ended as on
31st December, 2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority.
Table A

Sr. No. Name of the Directors Director Identification Date of appointment in

Number Company
1. Mr. John Lee Berisford 07554902 19/07/2016
2. Ms. Shyamala Gopinath 02362921 10/07/2020
3. Mr. M. Damodaran 02106990 14/01/2014

Financial Statements
4. Ms. Vinita Bali 00032940 14/02/2014
5. Ms. Ashu Suyash 00494515 01/06/2015
6. Mr. Ewout Steenbergen 07956962 17/10/2017
7. Mr. Girish Paranjpe 02172725 17/10/2017
8. Mr. Martin E. Fraenkel 08410263 18/04/2019
Ensuring the eligibility of for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate 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 Makarand M. Joshi & Co.
Practicing Company Secretaries

Kumudini Bhalerao
Place: Mumbai  Partner
Date: February 05, 2021  FCS No. 6667
UDIN: F006667B002553739  CP No. 6690

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CRISIL Limited

Business Responsibility Report

Business responsibility in the times of Covid-19 has assumed with high analytical rigour; a reputation maintained through
a more serious dimension. a challenging global business environment in 2020. The Code
of Ethics covers overarching norms for ethical business
The pandemic, easily the most disruptive event in recent
practices, non-discrimination, diversity, fair labour practices,
memory, posed a surfeit of challenges for organisations the
workplace safety and conduct, environment protection,
world over and we have been no exception. The challenges
information protection and confidentiality, protection of
ranged from ensuring business continuity and delivering
CRISIL’s assets, employee conflicts and anti-bribery including
essential intelligence on the double where needed, to
gifts or favours. Individual policies reinforce and articulate
ensuring the safety and well-being of our people and also
detailed practices for certain principles. CRISIL’s employees
doing our bit for the society at large.
also adhere to the S&P Code of Business Ethics Policy. Both
Our management led from the front in this, with agility and Codes are communicated throughout the organisation and
decisiveness as their allies; empathy and people-first, as reinforced through training, assessment and affirmation
priorities; and keeping the communication channels wide of employees at the time of joining and on an annual basis.
open, their method. And of course, everything that CRISIL as Training/certification on Code of Ethics is mandatory for
an institution has built over the years, came in handy. all employees across the organisation, including Senior
Management. During the year, ~ 19% of training hours related
For our employees, we launched a number of resources
to training on Ethics provided to employees. Further, special
and initiatives that would help deal with the stress of the
drives were conducted for raising awareness on compliance
pandemic and launched trainings that could enable them to
policies through online interactions with employees.
excel. Further despite the challenges posed by the pandemic
we continued work in the area of diversity and inclusion. The Confidentiality of client information is of utmost importance
result of our meritocratic, open, inclusive and progressive at CRISIL. The Company lays great stress on appropriate
work culture and environment is that CRISIL was certified policies and controls over employee trading practices, regular
by Great Place to Work Institute as a Great Workplace. This awareness and training sessions and reporting. Our policies
honour is a ringing endorsement of our initiatives on employee not only cover CRISIL’s, but also clients’ securities depending
engagement, learning and development, performance on the restricted list maintained for each business. A critical
management and individual-growth opportunities over the initiative related to empanelment of brokers in India through
years. Further, CRISIL was also recognised as one of the Top whom CRISIL’s employees are permitted to trade has enabled
Employers 2020 (Bronze category) by the India Workplace monitoring of employee trades on a timely and independent
Equality Index, India’s first comprehensive index for LGBTQIA+. basis and reduced the reliance on self-disclosure by
employees. This channelled approach has significantly
Thinking digital has been core to our operations for a while
strengthened monitoring and surveillance of security trades
now. The proactive focus on digitalisation stood us in great
and holdings disclosed by employees as well as augmented
stead and allowed us to ensure business-as-usual operations
our conflict management framework.
even as the world was forced into a shell by the pandemic.
Policy level controls for confidentiality and conflict
We have always been empathetic towards the communities
management are supplemented with continuous upgradation
we operate in and that approach continued – we would in fact
of CRISIL’s information security infrastructure and policies
say, broadened – after the pandemic, to serve the affected.
to safeguard confidential and proprietary client data and to
This Business Responsibility Report articulates CRISIL’s monitor and control access.
activities on sustainability during 2020, based on the nine-
We continue to pursue instilling ethical and responsible
principle framework of National Voluntary Guidelines on
corporate behaviour amongst our business partners as well
Social, Environmental and Economic Responsibilities of
by encouraging them to adopt our Suppliers’ Code of Conduct.
Business, notified by the Ministry of Corporate Affairs on
For more details on this, please refer to Principle No. 5.
July 8, 2011. Policies and practices under each principle are
explained in subsequent paragraphs with correlation to the The Code of Ethics articulates the mechanism for reporting
SEBI reporting format, appended at the end of the report. violations. The Whistle Blower Policy encourages and
supports reporting of concerns about issues such as
Principle No. 1 unethical behaviour, grave misconduct, leak of unpublished
price sensitive information (UPSI), actual or suspected fraud
Ethics, transparency and accountability or violation of the Code. The Policy provides for essential
CRISIL’s Code of Ethics holds its employees to the highest safeguards to reassure whistle blowers that the non-
standards of ethical conduct, conflict-free working and discrimination and fair conduct encapsulated in the Codes will
respect for client data confidentiality. These principles are protect them from reprisal. Several avenues exist for reporting
the foundation of our business conduct and make CRISIL transgressions such as direct reporting to respective line
stand tall as an independent and credible opinion maker managers or HR Executives or the Legal department as well

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Annual Report 2020

as the Compliance Officer. Complaint redressal is tracked project lifecycle and its laid out objectives. CRISIL’s Impact
rigorously at various levels of management. The Stakeholders’ Assessment services help corporates, donors and implementing
Relationship Committee of the Board dedicates exclusive agencies gain insight to facilitate expected improvement in
time to review cases of policy violations and stakeholder social development projects, monitor progress of the project
complaints regularly. Heightened sensitivity towards policy and improve its quality, effectiveness and efficiency and assess
violations, rigid stance on transgressions and review of such effects by examining the relationship between project activities
matters at the highest levels by a Board level Committee, and observed consequences. Through our robust grading
reinforce the compliance culture at CRISIL. Additionally, and due diligence frameworks for Voluntary Organisations
appropriate reporting is carried out in accordance with the (VOs), NGOs and foundations, who are an essential cog in

Corporate Overview
Policy. Complaints received from employees, contractors, the implementation cycle of social sector programmes, we
vendors, customers and shareholders have been reported have facilitated strengthening of such organisations and
in Principles No. 3, 4 and 9 and under Corporate Governance helped decision makers better evaluate the performance and
Report, respectively. Besides these, there were no other sustainability of organisation’s actions.
stakeholder complaints.
Research on economy and industry
With deep understanding of the macro-economy and extensive
Principle No. 2
coverage on about 76 sectors, CRISIL Research is the country’s
Sustainable services largest independent and integrated research house. We provide
insights on micro-macro and cross-sectoral linkages and help
CRISIL is a leading global analytics player, driven by its mission
meet the requirements of Indian and global businesses. CRISIL
of making markets function better. CRISIL’s clients range
also provides incisive, customised research that allows clients
from micro, small and medium enterprises (MSMEs) to large
to make informed business and investment decisions and
corporates, investors and top global financial institutions.
understand the competitive environment.
We help clients mitigate risks in businesses, take pricing

Statuory Reports
and valuation decisions, reduce time to the market and We are the largest provider of valuation of fixed-income
generate more revenue and returns, which eventually leads securities to the mutual fund, insurance and banking
to investments, growth and development in the economy. We industries and are the pioneers and sole provider of
showcase our significant projects/services during 2020, which benchmarks to the three AIF categories in India.
created a meaningful impact on some of our stakeholders
Quantix, our comprehensive, differentiated and client-centric
Ratings for innovative credit structures data platform, has India’s largest database of 60,000+
companies with extensive coverage of financial and non-
On the innovation front, CRISIL Ratings continued to be the
financial data, complemented by the tools and analytics to
first port of call for innovative instruments even in the muted
build data-driven insights. Alphatrax, the wealth tracking
bond market. In 2020, CRISIL Ratings assigned a rating to
solution designed for wealth managers, now covers 5 key
the first dealer securitisation transaction in India and seven
asset classes – Equity, Debt, Mutual Funds, AIFs and PMSs.
covered bond transactions.
With deep domain expertise built over the years across the
In last couple of years and especially in 2020, real estate

Financial Statements
sectoral research and funds and fixed income research
infrastructure trusts (REITs) and infrastructure investment
space, CRISIL Research offers tailor made solutions to clients’
trusts (InvITs) have emerged as one of the preferred routes
training and skill development needs delivered by expert
for refinancing for operational assets in real estate and
trainers via both classroom and virtual modes.
especially infrastructure segments. Similarly, covered bonds
emerged as an alternative and innovative fund raising source Regulatory & Risk Support
for non-bank sector facing investor risk aversion. CRISIL
CRISIL Global Research & Analytics (GR&A) helps large global
played an important role in investor awareness for such
retail, commercial and investment banks, asset management
instruments, besides rating key transactions in these spaces.
companies and insurance companies globally to navigate
CRISIL has also been instrumental in supporting various through uncertainties, such as market volatility and helps
market development initiatives undertaken by regulators and such institutions migrate to robust risk and trading platforms
the government and has been regularly engaging with them and measure risks in a more real-time manner.
to share perspectives and inputs on global best practices.
While financial markets are known to be dynamic, the effects
CRISIL Research of Covid-19 and related lockdowns led to unprecedented
volatility in 2020, including a decline in GDP growth and
We have been contributing to the SME sector for more than a
negative commodity prices. The repercussions on global
decade by performing various assessments for SMEs. CRISIL
financial institutions were significant, as risk models were
is also working with various corporates for assessing SMEs in
not designed to handle such extreme data movements,
their supply chain.
risk platforms could not accommodate negative prices and
Our social sector offerings aim at fostering creative thinking fiscal programmes mandated temporary moratoriums on
for social innovation which will play a key role in systematically loans. As a result, CRISIL GR&A saw increased engagement
answering the underlying challenges of the sector. CRISIL’s levels with clients, supporting them through heightened
social sector offerings enable a deep alignment with the CSR monitoring of credit portfolios, robust documentation to
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CRISIL Limited

justify the increasing use of model overrides and an increase b. Integrating sustainable tourism project in Leh: This
in the volume and range of scenarios for internal stress study entailed reviewing the components of sustainable
tests (ICAAP). CRISIL GR&A is also the preferred end-to-end tourism and analysing key sectors namely, solid waste
implementation partner for various banks for their regulatory management, water and sanitation and mobility being
implementation programmes (Basel III reform, FRTB, CECL, impacted by the tourism activities. CRISIL Infrastructure
TRIM, IRB repair, MiFID II, UMR, IBOR, etc.), leveraging our Advisory team undertook the study which culminated
rich experience of working with clients globally and deep in providing recommendations to integrate sustainable
expertise in the financial services domain, complemented by measures into tourism related activities such as water
technology and project management capabilities. supply management, solid waste management, mobility,
energy, accommodation, etc.
On the domestic front, Business Intelligence and Risk
Solutions (BIRS) has been working with banks and financial c. Improving solid waste management (SWM) in

institutions to manage and mitigate their risks. Our solutions Kochi and Gangtok: This study captured the unique
and offerings aid lending institutions to take informed challenges being faced by both cities due to improper
decisions to assess, manage and monitor their risks in management of solid waste and proposed mitigation
credit portfolio. Our monitoring framework helps to identify measures for the same.
potential early delinquencies for institutions to take proactive
CRISIL Infrastructure Advisory was appointed by Asian
iii. 
corrective actions. This improves the health of credit portfolio
Development Bank (ADB) for providing expertise on finance
of institutions, leading to better credit culture across. Our
and investment in developing city level clean air pollution
offerings assist banks to manage and streamline their
reduction action plans for seven cities in Bangladesh,
process of submission of periodic reports to the regulator
Mongolia, Pakistan, Philippines and Vietnam. It is also
ensuring adherence to the compliance needs of the banks.
being more widely recognised that investment in air quality
Infrastructure Advisory management can help boost socio-economic development.
The study would overall assist in delivering air quality
CRISIL Infrastructure Advisory offers a wide array of services
improvements in seven cities.
across the infrastructure development cycle, ranging from
work in the areas of policy and regulatory advisory, public- iv. CRISIL Infrastructure Advisory is also assisting clients
private partnership (PPP) frameworks, infrastructure in the private sector in their long term strategy towards
financing mechanisms, business and commercial diligence, sustainable development by supporting them in
programme management, capacity enhancement and assessment of future power requirement through solar
institutional strengthening for government and infrastructure and other renewable energy sources.
agencies.
ESG Research
During the year, we supported the following important
GR&A
initiatives:
CRISIL GR&A’s environmental, social and governance (ESG)
i. 
CRISIL Infrastructure Advisory was appointed by
research offerings help firms monitor dynamic regulatory
International Finance Corporation (IFC) to analyse
landscape and integrate ESG data for alpha generation and
current scenario and expected market potential of green
client engagement. This year, CRISIL GR&RS hosted three ESG
buildings till 2030. With this project, CRISIL Infrastructure
webinars and also published 5 white papers on the themes of
Advisory will help further IFC’s objectives of supporting
ESG and climate risk.
private sector’s climate-related investments and
activities to address climate change. Coalition

ii. 
CRISIL Infrastructure Advisory was appointed by the Coalition is a leading analytics and business intelligence
International Urban Cooperation (IUC) for the Sustainable provider to more than 30 corporate and investment banks
and Innovative Cities and Regions plan in India which across the global financial services industry. In 2020,
seeks to enhance city and sub-national cooperation on Coalition was referenced in 250+ articles across 55+ global
sustainable development between the EU and India. publications and its analytics were referenced in 110+
CRISIL’s Infrastructure Advisory business implemented 3 investor relations presentations across leading global banks.
sub-projects within this which includes: In 2020, Coalition worked closely with its partners and
associates to leverage their multiple assets and create new
a. S
 ludge to energy project in Udaipur: Udaipur currently
analysis on ESG for the CIB divisions of banks.
has 3 operational sewage treatment plants which
produce 4.5-5 ton of sludge per day. This sludge is not Greenwich
put to any productive use and is directly dumped in the
Greenwich conducted an ESG Research with asset owners
solid waste landfill sites. The purpose of this project
and investment consultants which covered ESG adoption,
was to establish a baseline of current practices to
needs and preferences among the largest and most influential
handle sludge in Udaipur. Commissioning of the sludge
asset owners and investment consultants around the world.
to energy plant in Udaipur will have many benefits such
Specifically, Greenwich helped asset managers develop and
as improvement in emissions, improving hygiene and
position their products to meet the growing demand for
use of sludge as a non-conventional source of energy.
sustainable investing.
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Annual Report 2020

Sustainable supply chain delivery of technology assets to employees, response to global

clients, travel guidance and business continuity IT Disaster
Our efforts to conduct business ethically and responsibly
Recovery drills. Required laptops and desktops were delivered
extend to our supply chain. CRISIL outlines the standards of
to employees and support was provided to work from home.
conduct expected from our suppliers in providing products,
services and headcount to us by embedding in the general CRISIL believes in a flexible work culture and strongly
terms and conditions which are a part of every purchase order. propagates work-life balance. Towards this end, we provide
These include, among other things, norms for environmental paid maternity leave of six months, child crèche, paternity
compliance, health and safety, non-use of child labour, leave, flexi-hours, work from home and sabbatical.

Corporate Overview
non-discrimination, anti-bribery and confidentiality. Such
We have specific policies and procedures to resolve issues
practices seek to create greater awareness on human rights,
and concerns raised by employees in a fair and transparent
safety and environment preservation.
manner. The Whistle Blower Policy provides a channel
CRISIL Foundation also sponsors projects under CRISIL RE for employees to express their grievances. It guarantees
Change the Scene, empowering employees to drive change complete anonymity and confidentiality of information to the
through interventions for financial capability building and reporting individual and safeguards from reprisals.
education among underprivileged communities and general
To foster a positive work environment, free from harassment,
public. Through Change the Scene, a series of live virtual
we have institutionalised the Prevention of Sexual Harassment
interactive webinars were organised with prominent social
(POSH) framework, through which we address complaints
change leaders like Deane de Menezes (Queen’s awardee, 30
related to sexual harassment. Our policy guarantees discretion
Under 30 Forbes Asia); Anshu Gupta (Founder, Goonj); Trishya
and non-retaliation to complainants. We follow a gender neutral
Screwvala (Founder, The Lighthouse Project) and other social
approach in handling complaints and we are compliant with the
leaders.
law of the land that we operate in.
In addition, at CRISIL local offices, we have empanelled women

Statuory Reports
entrepreneurs in the past for services such as horticulture No. of No. of complaints
and composting. complaints pending at the end
filed during of financial year
financial year
Principle No. 3 Child labour/forced Nil Nil
Our employees labour/involuntary
labour
CRISIL takes a holistic approach to its employees’ work life Sexual harassment* 0 0
to help build a long-lasting and fruitful career. A number of Discriminatory Nil Nil
initiatives were taken in this direction in 2020. employment
Safe and flexible work culture *The aforesaid data relates to CRISIL Limited on a stand-alone basis.
Additionally, 1 complaint was received from an off-roll person which has been
A safe, flexible and hassle-free work culture at CRISIL elicits resolved.

optimum performance as employees are assured of their

Financial Statements
During the year, the Company also received two complaints from
safety and security. Towards this end, work premises’ safety employees related to workplace conduct. One complaint has
is ensured through regular safety drills and necessary been resolved through an appropriate redressal mechanism and
advisories on security incidents and weather situations. one complaint is pending resolution as on December 31, 2020.
The focus in 2020 has been on ensuring safety of employees Complaints were redressed and appropriate action within the
and continuity of business operations. The spread of applicable framework was taken.
Covid-19 and its potential impact on people and business
was closely monitored during the early stages of on-set in Employee engagement
2020. Anticipating an impact to people, business in India and Our annual engagement survey, VIBE, is now aligned to our
other global offices, measures to ensure safety of employees parent company S&P Global, allowing us to benchmark with
and continuity of business operations were undertaken. global best practices. Each year, the survey results guide
Masks and sanitisers were procured for employees and CRISIL to better the employee experience of working at the
sensitisation of employees on Covid-19, symptoms and safety Company, be it better use of technology and work methods,
measures to be adhered were initiated through mailers, improved communication, effective recognition and rewards
posters and intranet. CRISIL tied-up with a specialist service programme or closer leadership engagement.
provider with the objective of augmenting primary care and During the Covid-19 pandemic, we redefined our healthcare
urgent response for employees and their families and also benefits, added new programmes, increased communication
enable seamless access to medical help and support. with employees and their families to avail of Employee
From a Business Continuity perspective, readiness was Assistance Programme (EAP) and introduced CRISIL Care (a
achieved to move business operations to Work from Home in a medical assistance scheme in partnership with Connect &
short period of time once the lockdown was declared at the end Heal) as a one-stop emergency health response programme
of March. CRISIL’s priority has been to ensure employee safety, centred on Covid-19. We connect with employees regularly

99
CRISIL Limited

through town halls, leadership talks, sessions by doctors We celebrate our employee performances with our robust
and experts to share their views. At CRISIL, employee health Reward & Recognition programme. To ensure employees
and well-being is another key focus area. Connect and Heal are motivated and at their productive best, we continue
and Medi-assist programmes have been very well received to strengthen our Reward & Recognition programme, with
by employees and have been extensively utilised for Covid annual awards for excellence, quarterly rewards for service
checks and treatment and hospitalisations. excellence and spot recognition programmes.
Echo and Crisbuzz (our employee intranet) continued to be two Virtual fun activities at the work place – such as CRISIL Funtastic
ongoing communication platforms that empower employees show which included interactive games, talent contests, boosted
to collaborate, learn and share experiences. CRISBuzz – the motivation and productivity during the COVID lockdown period
internal, social and communication collaboration platform – and added to building a positive work environment.
serves as a popular means of reaching out to colleagues for
We recognise the right to freedom of association in
sharing important work-related highlights, new policies and
accordance with the laws of the land. However, we do not have
important updates and also facilitates spontaneous feedback
a recognised employee association.
on new developments and policies, fostering a culture of open
communication. The year 2020 saw new interactive formats Diversity and inclusion
for conducting senior leadership town halls, for greater
Diversity of the workforce has always been our strength.
participation from employees. Employees are encouraged to
Spanning knowledge areas, age, gender, skills, experience and
ask questions and responses to all questions are hosted on
nationality, we have employees representing 32 nationalities
CrisBuzz. The employee engagement scores index of 2020
based in eight countries across the world.
shows an increase of 8 points as compared to 2019.
Women comprise about 36.9% of CRISIL’s workforce. Our
After adapting to the work from home routine, we also
flagship programme Winspiration has been driving different
invested in training all the people managers on empathy and
interventions for our women colleagues, encouraging and
how to effectively manage teams remotely. A testimony to this
fostering their development and growth.
is CRISIL being certified as a ‘Great Workplace’ by the Great
Place to Work Institute. We had 724 people working on a contract basis as on
December 31, 2020. Our employee distribution across regions
and gender over the past three years was as follows:

2020 2019 2018

Regions
Female Male Total Female Male Total Female Male Total
America 93 174 267 63 120 183 65 140 205
Europe 44 103 147 35 90 125 30 95 125
APAC 37 36 73 36 25 61 38 28 66
India 1175 1981 3156 1183 2029 3212 1222 2150 3372
UAE 5 22 27 5 23 28 3 25 28
Total 1354 2316 3670 1322 2287 3609 1358 2438 3796
Diversity of workforce
Gender diversity Geographical diversity
1%
1%
2%
7%
4% 2%

37%

India
86% America
63% Europe
Female APAC
Male UAE

Diversity helps broaden our perspective and enriches us with a better understanding of client requirement and markets. It
enables us to equip our clients with the best solutions.
Talent development & retention
CRISIL believes in lifelong learning for its employees and competency development continues to be a key focus area for us.
With digital learning being the new mantra of learning anytime, anywhere, we launched Coursera and LinkedIn learning for our
employees. These platforms offer learning on a wide variety of technical and behavioural themes.

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Annual Report 2020

New formats of learning introduced i.e. Fire side chats and Principle No. 4
Knowledge cafes. Fireside chats have been conducted on topics
Stakeholder engagement
like setting goals, client engagement, managing virtual teams,
managerial presence, application of Artificial Intelligence/ Our principal stakeholders are our shareholders, employees,
Machine Learning, covering more than 600+ participants from customers, vendors/partners and communities.
across businesses and geographies. Internal experts from
We have adopted the policy of equal opportunity towards our
CRISIL or external experts participate to enrich the content of
stakeholders and engage with vendors and employees strictly
the dialogues. At Knowledge cafes CRISILites get an opportunity
on merit and business needs. The Company’s commitment to
to share their expertise on thematic topics.

Corporate Overview
maintaining a discrimination-free work environment extends to
Digital learning through LinkedIn learning has seen a significant all persons involved in the operation of the Company’s business
uptake and this is evident through the increase in learner and prohibits discrimination or unlawful harassment by any
engagement and time spent. There has been a 400% increase employee against applicants, customers, independent contractors,
in hours viewed and 500% increase in courses completed. vendors or other strategic partners. The Company’s selection of
Additionally, there has been a threefold increase in the unique business partners is not based on any consideration other than
count of learners who have completed at least 1 course. normal business parameters. All employees are responsible
for maintaining a work atmosphere free from discrimination by
YOUniverse continues to be used as the learning management,
treating others with dignity and respect. A 36.9%-strong women
as well, through which many in-house courses are launched
workforce is a testimony to CRISIL’s non-discriminatory approach.
and made available to employees. Through these mobile-
based programmes, employees are now able to learn on The Company’s recruitment policies cover strict safeguards
the go. These programmes have enhanced the reach of the over age-related criteria. We expect the same high standards on
structured e-learning process across the Company. engagement of child labour and human rights protection from
all our contractors, suppliers and other business partners.
Besides this, CRISIL Conclave is our Thought Leadership forum

Statuory Reports
in which reputed external speakers share their experiences, Though we do not keep track of employees or business partners
providing an opportunity for our employees to interact and with disability or vulnerabilities today, our endeavour is to make
learn from leaders from different walks of life. our main office premises friendly to those with special needs.
The training effort across employee categories over the past Stakeholder engagement surveys deployed by teams who
year is as follows: interface with various stakeholders help assess the material
expectations of our stakeholders.
Count Training Average
Particulars man-hours training CRISIL has a dedicated procurement team to review,
man-hours consolidate and optimise key large spends. The team enables
Permanent employees 4,160 60,455.36 14.53 sustained interaction with large vendors, regular capability
Permanent women 1,516 23,688.22 15.62 assessments, exchange of expectation and challenges
employees and helps build sustainable long-term relationships with
Contract staff 724 3,602.95 4.98 key vendors. During the year, two vendor complaints were

Financial Statements
Count includes training conducted globally for CRISIL and its subsidiaries. Both received which were resolved as at the year end.
count & training man-hours also include employees who exited during 2020
Business development and senior management teams from
The training includes trainings on ethics, behavioural, health & various businesses engage with customers through periodic
safety and skills upgradation as depicted in the pie chart below: meetings, project level feedback and surveys to help us
assess our customers’ needs and improve our offerings and
9% service quality. Besides this, monthly newsletters are sent
and knowledge sharing sessions, workshops and webinars
19% are conducted for our clients regularly to share holistic
perspectives on major changes and trends in the economy,
regulations and industries relevant to them.
11% Behavioural
61% Shareholder, analyst and investor meetings and calls;
Ethics
and annual and quarterly reports provide updates on the
Health & safety Company’s performance, the factors surrounding its growth
Skills upgradation and market dynamics. These also help gather insights on the
expectations from the market and constructive feedback for
improving shareholder services.
Our internal job rotation policy provides opportunities to
Engagement with employees has been covered under
employees looking for varied roles across the organisation.
Principle No. 3.
CRISIL’s voluntary attrition rate in FY 2019 was 24.5 % which
reduced to 14.3% in FY 2020. The Policy on Corporate Social Responsibility (CSR)
determines our engagement with socially and economically
disadvantaged sections of the society to strengthen their

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CRISIL Limited

financial capabilities. CRISIL Foundation does extensive work people from the more vulnerable sections with lower literacy
in the area of financial capability building of women in Assam levels, to comply with labour standards such as minimum wages,
and Rajasthan and helps rural households get access to gratuity, bonus, leave, employees’ state insurance and other
various banking, financial and government schemes. It is also employment laws. The administrative team regularly inspects
a partner in the RBI’s Pilot MoneyWise Centres for Financial the providers of housekeeping, café and employee transport
Literacy (CFL) in Maharashtra, Haryana and Rajasthan; services to check on compliance requirements.
imparting training and awareness with respect to formal
Being in the financial services sector, our workplace and
banking services and financial products in these states. For
processes are inherently non-hazardous and safe in nature.
more details on our engagements with communities, please
We are focused on providing comfortable and safe workplaces,
refer to Principle No. 8. Further, linkage of our portfolio of
which keep the employees’ motivation level high and enable
services with financial institutions such as banks, pension
them to focus on contributing effectively to their work.
funds, mutual funds, Non-Banking Financial Companies
(NBFCs) and other financial intermediaries helps us take care Each year, all the employees are mandated to take the online
of their information needs and engage with them regularly. learning course on prevention of sexual harassment. Capacity
enhancement programmes were organised for Internal POSH
In 2020, we shared several opinion pieces with representatives
Committee members.
from diverse entities, cutting across sectors and regions. These
pieces covered a spectrum of issues, from the macroeconomic Our employees have various channels to report harassment,
to the micro cluster level, including fiscal outlook, budget discrimination or forced labour.
analysis and industries such as renewable energy, auto, agri,
Other than what has been reported under Principle No. 3,
infrastructure and others. We also prepared reports jointly with
there were no complaints relating to human rights violations
industry bodies such as FICCI which published an article titled
during the year.
“Rooting for an aatmanirbhar capital market” and the Associated
Chambers of Commerce and Industry of India (Fastening MSME
Fortunes), which were very well received. Principle No. 6
We often engage with regulatory bodies such as the RBI and Environment
SEBI to put forth our opinions in designing better governance CRISIL is in the services business specializing in financial
policies. We engage with central government departments and corporate research and analytics. CRISIL is not a
such as the finance and infrastructure ministries and state manufacturing company and, hence, our business activities
and local governments, to support policy development are inherently non-energy intensive. Nonetheless, we
initiatives and large infrastructure programmes. continuously endeavour to minimise consumption of
resources for administrative support and facility management
Principle No. 5 and, thus, reduce our carbon footprint to the extent possible.

Human rights The goal of conservation of the environment is aligned with

CRISIL’s strong belief of doing business in greener ways. As a
CRISIL upholds the principles of human rights and fair
conscious step in this direction, we are progressively moving
treatment in its business activities. We have reinforced this
towards energy-saving LED technology for our office lighting
stance by adopting the Policy on Anti-Slavery, which ensures
needs, monitoring energy consumption and embracing
transparency and prohibits the use of forced, compulsory or
composting techniques to reduce waste removal to landfills.
trafficked labour in our business. The policy extends to all
CRISIL House, Mumbai, our corporate headquarters, has
CRISIL subsidiaries (please refer to the statement appended
achieved a LEED Platinum certification, the highest such
at the end of this Report).
certification in 2009. As the commitment continues with the
We expect the same high standards on human rights protection same vigour and dedication, the certification was renewed in
from all our contractors, suppliers and other business 2016 retaining the Platinum certification which is a hallmark
partners. For this purpose, we have adopted a Supplier of our commitment to the environment. The second largest
Code of Conduct, which outlines the minimum standards office within the CRISIL family in India is CRISIL House,
of conduct that CRISIL expects its vendors and suppliers in Gurugram which has been given a LEED Gold certification.
the areas of business ethics and integrity, fraud prevention, Both offices together, house 50% of the CRISIL workforce in
discrimination and diversity, child labour, health and safety, India.
environmental compliance and sustainability. Suppliers who
CRISIL has an environmental policy which governs the
have deployed their resources at CRISIL’s premises and where
environmental practices followed by the Company. CRISIL’s
resources have access to our technology infrastructure and
environment policy underlines our commitment to be
applications, need to affirm compliance with the Code of
responsible by improving our environmental performance
Conduct in their dealings with CRISIL. The Supplier Code of
across activities, and encouraging our employees and
Conduct is available on the Company’s website, [Link]
members of the wider community to work for the environment.
[Link]/en/home/investors/[Link]
In addition, we contractually bind our major suppliers of IT
support, facility management and security services that employ

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Annual Report 2020

Environment conservation programme is also used for watering CRISIL House’s 17,000 square feet of
green areas. Over a period of time, various upgradations have
CRISIL’s environment conservation programme, under the
been made to further reduce water consumption such as
aegis of the CRISIL CSR Policy, focuses on the conservation
introduction of water less urinals. The Company’s solid waste
of the environment by focusing on relevant programmes in
management practices also ensures zero contribution to
the vicinity of CRISIL offices so that employees get directly
landfills from CRISIL House. Dry waste is handed over to scrap
involved in CSR initiatives. The programmes include centrally-
vendors for recycling whereas the wet waste is converted to
driven and employee-led projects, and strive to constructively
compost on the site itself.
engage employees and their families, friends and relatives

Corporate Overview
in environment conservation. This involves preserving the Throughout CRISIL group a number of initiatives have been
oceans and forests, tackling climate change and its impact taken over the years to reduce paper consumption. One of the
– thereby positively impacting “Life below Water” and most pervasive uses of paper is the paper cup – a company
“Life on Land” – two of the key United Nations Sustainable of CRISIL’s size can save as much as 12 tonnes of paper in a
Development Goals (UN SDGs). year, besides savings on transport and disposal, by not using
these cups. CRISIL has replaced paper cups with reusable
In 2020, the Foundation planted 44,630 trees across five
metal cups.
cities, taking the cumulative number of tree plantations to
over 73,000 (2015 to 2020). With an aim to keep the employees No regulatory notices
engaged in conversations pertaining to bio-diversity,
No show-cause/legal notices were received from any
environment conservation, sustainability and responsible
pollution control authorities during the last 3 financial years,
volunteering; CRISIL Foundation organised a series of
including 2020.
webinars and virtual knowledge sessions on environment
protection, bio-diversity conservation and social leadership.
Through CRISIL Re, CRISIL observed World Environment Day Principle No. 7

Statuory Reports
(June 5) and World Ocean’s Day (June 8) through a series of Public policy advocacy
speaker sessions in collaboration with S&P Global India
focusing on environment, climate change and bio-diversity CRISIL’s objective is to make markets function better.
conservation. Advocacy is an important tool in this regard. SEBI has
introduced various disclosure requirements for credit rating
CRISIL’s initiatives to reduce the Carbon Footprint: agencies over the past few years to enhance transparency
• At the operations level, CRISIL has consolidated its data and improve accountability. This year SEBI also introduced
centers by reducing the number of physical servers regulatory changes aimed at providing regulatory forbearance
through virtualization, and has provided an enclosed to corporates affected by Covid-19 pandemic and lockdown.
space and focused cooling for the servers It held consultations with the industry, seeking their inputs
on the subject. CRISIL’s Senior Management proactively and
• The design and usage of the air-conditioning system
continuously engaged with regulators and stakeholders by
in CRISIL House conserves energy and minimizes
providing feedback at various stages. We continue to interact
electricity usage. Air-conditioning units are specific to
with market participants and issuers through seminars and

Financial Statements
areas; individual units are controlled and adjusted zone-
webinars on key developments in the economy and sectors.
wise using an integrated building management system.
The building is designed and built to minimize thermal Some notable affirmative actions in this area were:
leakage, both inward and outward. • CRISIL was invited to chair the sub-committee on CRAs
• Motion sensors are used to optimize lighting usage and debenture trustees (DTs) of the SEBI constituted
Market Data Advisory Committee. The committee and sub-
• In addition to reducing energy consumption, bank of
committee will endeavour to make recommendations that
photovoltaic panels are installed in the office premises
foster a ‘data culture’ in the Indian securities market.
to generate solar energy
• CRISIL participated in meetings organised on topics
• Employees are encouraged to use conferencing facilities
related to the economy, economic and monetary policies,
and webinars as a means of interacting with clients and
commercial paper regulations, CRA regulations etc., with
the market wherever possible
various government forums including the Ministry of
• The Company has provided buses for employees to Finance, GoI, the insurance and pension funds regulators,
travel to office, which apart from enhancing employee besides the RBI and the SEBI.
convenience also reduces usage of vehicles due to
• CRISIL Ratings hosted its 5th annual seminar on NBFCs,
pooling effect
under CRISIL’s unique platform ‘CRISIL Fin Insights’ aims
• Preferred parking slots and charging points are provided at fostering ongoing dialogues and discussions on the
for electric cars at CRISIL House developments in Banking & Financial Space in India.
The event was focused at comprehending the critical
CRISIL’s initiatives towards resource utilisation intensity:
imperatives for the NBFC sector’s growth prospects, asset
CRISIL House, Mumbai has a Sewage Treatment Plant (STP) quality, liquidity and profitability amidst the impact of
for recycling of water which is then routed to sanitary use, and Covid-19.

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CRISIL Limited

• As part of completion of 20 years of CRISIL’s Mutual Fund macro-economic indicators, commentary on the expected credit
Ranking our marquee product, CRISIL hosted the 1st behaviour and outlook on various sectors and industries.
edition of CRISIL’s India Investment Conclave 2020 in 2020.
Besides, CRISIL and S&P jointly hosted multiple outreach
It is a unique platform that brings together key industry
activities such as a webinar on US elections; the webinar
stakeholders to discuss a range of trends that are changing
aimed at discussing how the overall economic conditions
the nature of business and gain insights into what’s driving
may be emitting different signals for companies, consumers
markets now and in the period ahead.
and other key stakeholders. CRISIL GR&A, together with S&P
• CRISIL GR&A hosted a virtual cross-bank roundtable Global Trucost and Greenwich Associates, hosted a webinar
to discuss on challenges faced by banks in their Stress titled, ‘ESG best practices for Emerging Markets’. The speakers
Testing processes and the potential to solve them using a shared insights on how AMs can adopt ESG best practices for
common industry solution such as the Scenario Expansion data quality, assessment frameworks and active stewardship
Manager (SEM) Platform. for their EM investing strategies.
• CRISIL GR&A hosted a virtual cross-bank roundtable As a part of our thought leadership and outreach initiative, we
to discuss the challenges faced by banks during both, authored opinion pieces and articles on noteworthy industry
development and validation of internal ratings/PD models for events and regulatory developments which were covered in
low-default portfolios. In this roundtable, GR&A presented premier dailies and online platforms. We also contributed
the specifics of its LDP data pooling consortium solution, as knowledge partners, speakers or panellists at various
which pools data on both, defaulted and performing obligors, summits organised by industry associations.
with the objective of enabling banks to carry out robust
During the year, we reached out to over 45,000 representatives,
testing or even re-development of their models.
including government officials, policymakers, regulators,
• To understand the best approaches and practices for corporates, banks, investment banks, MSMEs, industry
arriving at the optimum model for banks, GR&A and associations and financial intermediaries in India and global
Greenwich Associates co-hosted a credit risk roundtable markets through 12 virtual events and 56 webinars hosted by
on Target Operating Model for credit risk management. In CRISIL and 90+ events at which CRISIL experts participated
this session we shared insights from a global digitisation as speakers or panellists.
benchmarking exercise, while senior industry experts
We are members of industry associations such as the
shared their experiences.
Confederation of Indian Industry and Federation of Indian
• CRISIL GR&A and Professional Risk Managers’ International Chambers of Commerce and Industry. Several employees
Association (PRMIA) co-hosted 2 round-tables to discuss participate in national and sub-committees set up for facilitating
on some of the notable industry challenges surrounding the and enabling and a conducive policy and regulatory framework
LIBOR transition in the US and UK. for sectors.
• CRISIL Infrastructure Advisory organised an event along
with Infrastructure Concession Regulatory Commission on Principle No. 8
‘PPP in Healthcare and Covid-19 – Experiences from India,
Inclusive growth
Abu Dhabi and the Rest of the World’.
CRISIL Foundation reaches out to socially and economically
• CRISIL GR&A hosted an industry discussion forum titled
disadvantaged sections of the society, beginning with women
Implementing Model Risk Management Practices at Insurers
and self-help groups, instilling in them a greater sense of
in New York, the panel discussion was structured around key
understanding and control over their finances. Our flagship
issues like adoption and scope of MRM, model governance
programme, Mein Pragati, launched in Assam and replicated
and workflow management initiatives and to discuss some of
in Rajasthan, has been customised for various target groups,
the best practices adopted by the industry.
across mediums, models and geographies, including the RBI’s
• During the year, Coalition hosted two virtual roundtables on ambitious Pilot MoneyWise Centres for Financial Literacy
the impact of Covid-19 on Global Markets and Transaction (CFL) Project.
Banking, with panelists from Greenwich Associates, and
Mein Pragati - Assam
S&P Global Ratings.
Mein Pragati in Assam is committed to financial inclusion in
• Research launched a high-frequency dashboard providing
the intervention locations by driving sustainable long-term
deep insights into markets, commodities and various
behavioural change to manage money; improving households’
sectors impacted due to Covid-19.
access to government schemes; and strengthening livelihood
CRISIL’s association with S&P Global helps blend local and global access for women in households. The key approach to
perspectives. CRISIL and S&P Global Ratings jointly hosted the achieving these objectives is by creating a vibrant and trained
fifth edition of India Outlook on April 29, 2020. The seminar community cadre of women called ‘Sakhis’ and strengthening
was held digitally and the theme of the seminar was Peering institutional infrastructure to create a supportive environment
through the grave storm: India macroeconomic and corporate for long-term financial behaviour change. Till date, the Sakhis
outlook. This webinar was a part of our unique platform CRISIL have reached out to over 3.5 lakh beneficiaries and facilitated
India Outlook where we share forecasts and insights on India’s more than 2.7 lakh linkages towards formal banking services

104
 Annual Report 2020

and welfare entitlements through a service fee model and Foundation took steps to capture all the best practices
guided rate card referred to as the Basket of Services (BoS). involved in training and development of Sakhis in the form
of an online learning and certification programme called
Through periodic capacity building and handholding, CRISIL
GramShakti. This tech-based learning programme is
Foundation has built the Sakhis’ capabilities to facilitate
available in an app form in local languages – allowing for a
awareness and doorstep linkages of formal financial
self-paced learning by potential Sakhis. GramShakti is CRISIL
services. More than 590 Sakhis are actively driving linkages
Foundation’s attempt to provide a scalable model for creating
and earning income through a service fee model and guided
a pan-India cadre of trained community leaders that can
rate card for various banking and financial services. Villagers,
effectively address the issue of financial exclusion as well as

Corporate Overview
thus, benefit from significant cost savings when gaining
women’s empowerment.
access to these schemes. Despite Covid19-induced lockdown,
Sakhis were engaged in helping the community members in During the year, the programme was expanded to over 1,900
digital transactions like money transfers, DTH and mobile end users across CRISIL Foundation’s intervention areas as
recharge and payment of utility bills through e-wallets – thus well as non-intervention locations through external partners
enhancing their trust and relevance. – with over 500 having completed the programme. There are
currently 230 Sakhis in Assam, Haryana and Maharashtra,
The Sakhi is now treated as trusted cadre housed in
who have been formally certified through a convocation
community, providing doorstep delivery and the key channel
programme.
for promoting financial and welfare schemes. Increased
community access to financial services and government MoneyWise Centres for Financial Literacy (CFL)
schemes has also resulted in a positive impact on the
CRISIL Foundation is the only corporate CSR arm selected by
Mein Pragati end beneficiaries. An independent midline
the Reserve Bank of India (RBI) to implement its Moneywise
assessment through a third-party agency has also verified
Centres for Financial Literacy (CFLs) pilot project for
this impact on ground.
financial inclusion in Maharashtra and Haryana during

Statuory Reports
In 2018, livelihood pilots were conducted for Eri silk, 2017. Subsequently, in August 2019, the RBI awarded CRISIL
handlooms and arecanut sheath collection in specific Foundation five additional tribal blocks of Rajasthan – thereby
intervention locations in Assam with a focus towards expanding the scope to 25 centres across three states.
augmenting household incomes livelihoods by strengthening
Since their inception, CRISIL’s centres in the three states have
entrepreneurial skills of Mein Pragati women. These pilots,
reached out to over 500,000 community members through
scaled in 2019, with help from on-ground partners like RGVN,
trainings and awareness camps and facilitated over 100,000
Grameen Sahara and Antaran (Tata Trusts) – have gained
applications to banking products and schemes. The centres
steady momentum through enhanced household coverage,
have seen over 25,000 walk-ins for query resolution and
revenue and income generation year-on-year. During 2020,
counselling. Given the programme’s need for a hub and spoke
the interventions positively impacted 749 households in
model, more than 1,000 community volunteers have been
Assam, by accretion to their average monthly income.
trained to actively provide local support in their respective
Mein Pragati scale-up in Rajasthan villages.

Financial Statements
Having successfully tested the efficacy of Mein Pragati The CFLs have received positive feedback from the regulator
in Assam, CRISIL Foundation focused on replicating the and other stakeholders. Over the years, they have also become
approach in Rajasthan in 2016. By 2018, the Foundation an integral component of the financial inclusion ecosystem
concluded the first phase, reaching over 60,000 women in the districts. RBI has also extended the pilot project to
and initiated Phase II in Alwar and Dausa (within existing November 2021 and formally announced1 its intent towards
geographies) – to drive deeper impact and outreach through a expanding into all blocks in the country by 2024.
trained cadre of Sakhis to support the community in building
CRISIL RE
their financial capabilities, build good financial practices and
drive long-term behaviour change. CRISIL RE, CRISIL’s flagship environment conservation
programme is actively focused on preserving the oceans
The Covid-19 pandemic brought the efficacy and robustness
and forests, tackling climate change and its impact through
of the Sakhi cadre to the fore. Through a stable and mature
afforestation, beach clean-up drives and other initiatives –
cadre of 273 Sakhis in the intervention villages, CRISIL
positively impacting “Life below Water” and “Life on Land”
Foundation continued reaching out to the end beneficiaries
– two of the key United Nations Sustainable Development
to facilitate their financial needs. In addition, the programme
Goals (UN SDGs).The programmes include centrally-driven
strengthened its positioning with key stakeholders and
and employee-led projects and strive to constructively
community influencers through targeted engagements.
engage employees and their families, friends and relatives in
GramShakti Certification Programme environment conservation.
Having established a proof of concept for trained community During the year, the Foundation planted 44,630 trees in
cadre of Sakhis across Assam and Rajasthan, CRISIL five cities – taking the total number of trees planted to

 Formally documented in the National Strategy for Financial Inclusion 2019-24 released by the RBI ([Link]
1

aspx?UrlPage=&ID=1154)

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CRISIL Limited

over 73,000 between 2015 and 2020. Despite physical Principle No. 9
volunteering activities temporarily being placed on hold due
Customer value
to the pandemic; the plantations continued to be nurtured
and maintained through post-plantation initiatives by the Our customer base is varied and vast and includes corporates,
NGO partner. SMEs, lenders, financial institutions, government bodies
and multilateral agencies. Irrespective of their business and
The 10k Meals Project for Covid-19
bottomline, they all expect us to deliver independent opinions,
Through CRISIL RE, the Foundation also undertook a multi- insights and viable solutions that empower them to make
pronged response to the Covid-19 pandemic. informed decisions. We aim to consistently surpass their
The 10k Meals Project: Millions of daily wagers were most expectations and retain their trust by constantly engaging
impacted by the complete lockdown imposed to contain the with them, listening to them and partnering with them
spread of the Covid-19 pandemic. In an attempt to support responsibly to create long-term value for their business.
daily wage-earners in Mumbai, CRISIL Foundation launched To drive close customer collaboration, we actively seek
“The 10k Meals Project”. CRISIL’s state-of-the-art kitchen regular feedback and accordingly improve our systems and
located at the corporate office in Powai was opened to processes. Further, we conduct regular knowledge-sharing
prepare up to 10,000 meals per day. These were distributed sessions for investors and issuers and keep sharing timely
to migrant workers and other under-served communities in and sustained analysis to help them derive value from
Mumbai. Over a 45-day period from March 30-May 13, the CRISIL’s superior research quality, insights and ratings.
Foundation served over 502,000 meals. CRISIL conducts outreach programmes to continuously
Oxygen therapy interventions for Covid-19 engage with clients and enable conversations with them on
important industry events and regulatory developments.
CRISIL Foundation partnered with ACT Grants to augment To augment our engagement with select investors and
the Oxygen Therapy capacity of hospitals by providing D-Type issuers, we leveraged the digital channel to disseminate our
oxygen cylinders and High Flow Nasal Cannula (HFNC) periodical publications, sectoral presentations and analytical
devices. These devices and cylinders have been deployed in reports. Outreach programmes include webinars, knowledge
the cities of Mumbai, Pune, Chennai and Delhi. partnerships, thought leadership reports, insights and media
Actively supported S&P Global Foundation’s Covid-19 appearances. These also serve as a forum to deliberate with
relief grant clients on their areas of business and gather perspectives to
enable us to serve them better and address their information
CRISIL Foundation supported the S&P Global Foundation needs.
in channelising their grant for Covid-19 relief efforts in
India. Active, on-ground support was provided to S&P In 2020, CRISIL continued to participate in the net promoter
Global Foundation to identify the right pockets of impacted score (NPS) survey across all businesses as a step towards
population and on-ground partners to ensure timely and well- our objective to be customer- and market-led and deliver
targeted distribution at multiple locations in Delhi, Mumbai an exceptional and differentiated customer experience. The
and Rajasthan. Over 9 lakh meals and more than 17,000 dry NPS score has improved by 23.3 % since last year which is
ration kits consisting of food and sanitation provisions for reflective of the high level of engagement that the Company’s
migrant workers and daily wage earners were distributed businesses did with customers even during the Covid-19
through this initiative. phase and the recall and value attached by customers to
CRISIL brand.
Please refer to the section ‘Annual report on corporate social
responsibility activities’ under statutory reports for details on Pursuant to amendments to the Securities and Exchange
spending on CSR activities during the year. Board of India (SEBI) Credit Ratings Agencies (CRA)
Regulations, 1999, mandating segregation of the ratings and
The overseas subsidiaries have also supported communities non-ratings businesses of credit rating agencies, the Company
in their respective locations. transferred its ratings business to wholly owned subsidiary
Greenwich volunteered to help run the ‘VOICES’ annual golf CRISIL Ratings Limited. CRISIL has always maintained high
outing fundraiser which assists communities preparing for governance standards and the ratings activities had always
and recovering from tragedy and provides long-term support been conducted in a separate division, firewalled from other
and resources that promote mental health care and wellness, businesses. The segregation process was seamless. The
for victims’ families, responders and survivors. ratings business continued to deliver best-in-class quality,
strong analytical rigour and exceptional service standards
Coalition made donations to local charities in London, New in all its offerings to customers and other stakeholders,
York and Singapore. Similarly, to mark International Women’s throughout the transition process and thereafter. This year,
Day in 2020, a contribution on behalf of Coalition was also CRISIL Ratings launched a customer web-portal and app
made to a women’s charity - Housing for Women. Additionally, under the banner of CRISIL Ratings Analytica. The portal
many employees participated in the JP Morgan Corporate carries incisive insights, thought leadership reports, articles
Challenge virtually this year.

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Annual Report 2020

and opinion pieces on topics germane to credit ratings; facilitates registration for upcoming events and webinars and much
more.
CRISIL Ratings brings in transparency in service standards by publishing detailed rating rationales to articulate the drivers of
instrument ratings. CRISIL Ratings publishes all criteria on its website and revises them periodically to reflect market dynamics.
CRISIL Ratings has also been publishing default and transition rates annually since 2004, a benchmark for quality of ratings,
thus helping clients and investors to quantify credit risk.
The outbreak of Covid-19 pandemic in 2020 accelerated the adoption of virtual mode of engagement by key stakeholders. At
the onset of the pandemic, we quickly adapted and connected with our clients as well as other stakeholders extensively and

Corporate Overview
seamlessly through digital modes. CRISIL Research Training services seamlessly transitioned from the traditional classroom
training programmes to virtual training sessions in the wake of Covid-19, ensuring no disruptions in clients’ learning agenda. In
2020, CRISIL launched a customer web-portal and app under the banner of CRISIL Ratings Analytica. It is a one-stop platform
for customer service as well as for on the go intelligence and ratings-related information.
Earlier, we applied the lessons from our China office to prepare our other offices for the pandemic. Before widespread lockdowns
were unveiled in India and other locations, we had communicated standardised messages on business preparedness to our
clients. As the pandemic intensified, we regularly consulted with our clients, as we re-evaluated work-from-home timelines
and provided them periodic updates.
Large scale disruption caused by the Covid-19 outbreak put the spotlight on portfolio-level analysis. Throughout the year,
GR&RS constantly kept clients updated on the impact the pandemic has had on their portfolio. CRISIL’s industry level insights,
have helped clients shape their forward-looking lending strategies. CRISIL GR&A and Greenwich Associates conducted a
webinar titled globally distributed teams as a potent BCP tool, the seminar discussed successful execution strategies, value
addition and service quality related to BCP. They also discussed operational risk from third-party services and global centres of
excellence and preparedness for another Covid-19-type event.

Statuory Reports
Each business receives and addresses customer complaints regularly. As of the end of the year, 0.28% of customer complaints
were pending. We do not have any pending material consumer litigation. Further, no case has been filed against the Company
regarding unfair trade practices, irresponsible advertising and/or anticompetitive behaviour during the last five years, which is
pending as of the end of the financial year.

Statutory report in terms of SEBI reporting guidelines

Section A: General information about the company
1. CIN L67120MH1987PLC042363
2. Name CRISIL Limited
3. Registered office address CRISIL House, Central Avenue

Financial Statements
Hiranandani Business Park, Powai
Mumbai 400 076
4. Website [Link]
5. Email ID investors@[Link]
6. Financial year reported January 1 - December 31, 2020
7. Sectors that the company is engaged in (industrial 1. Ratings: Providing credit ratings including bond ratings,
activity code-wise) bank loan ratings, SME ratings, other grading services
NIC code: 66190
2. Research: Research services include Global Research &
Analytics activities divided into financial research, risk
& analytics and corporate research and India research
activities comprising economy & industry research, funds
& fixed income research and equity & company research
NIC code: 66190
(includes CRISIL’s standalone operations only. Of the above, Ratings
transitioned to CRISIL Ratings Limited as on December 31, 2020)
8. List three key products/services that the company Same as 7 above
manufactures/provides (as in balance sheet)
9. Total number of locations where the business activity
is undertaken by the company
i. Number of international locations Refer to page titled ‘Office locations’ in the annual report
(includes subsidiary operations)
ii. Number of national locations Refer to page titled ‘Office locations’ in the annual report
10. Markets served by the company – Local/state/national/ All
international

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CRISIL Limited

Section B: Financial details of the company

CRISIL - Standalone
1. Paid-up capital Rs 7.26 crore
2. Total turnover Rs 992.73 crore
3. Total profit after taxes Rs 166.72 crore
4. Total spending on CSR as a percentage of profit after tax (%) Refer to Annexure I of the Directors’ Report
5. List of activities in which expenditure in 4 above has been incurred Refer to Annexure I of the Directors’ Report

Section C: Other details

1. Does the company have subsidiary company/companies? Yes. Refer to the Annual Return (Form MGT-7)
available on the Company’s website: https://
[Link]/en/home/investors/financial-
information/[Link].
2. Do the subsidiary company/companies participate in the Business Yes. Refer to various sections of the Business
Responsibility initiatives of the parent company? If yes, then indicate Responsibility Report
the number of such subsidiary company(s)
3. Do any other entity/entities (e.g., suppliers, distributors, etc.) that Less than 30%. Refer to sections on ‘Sustainable
the company does business with, participate in the BR initiatives of supply chain’ and ‘Human rights’ of the Business
the company? Responsibility Report

Section D: BR information
1. BR governance
a) Details of the director responsible for implementation of the BR policy/policies and details of BR Head
Name: Ms Ashu Suyash
DIN: 00494515
Designation: Managing Director & CEO
Telephone: +91 22 3342 3000
Email Id: investors@[Link]
b) Indicate the frequency at which the Board of Directors, Committee of the Board or CEO assesses the BR performance of the
Company (within 3 months, 3-6 months, or annually): Annually
c) Does the Company publish a BR or sustainability report? What is the hyperlink for viewing this report? How frequently it is
published? No separate report is published
2. Principle-wise BR policy compliance

Principle index
P1 Businesses should conduct and govern themselves with ethics, transparency and accountability
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
P3 Businesses should promote the wellbeing of all employees
P4 Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised
P5 Businesses should respect and promote human rights
P6 Businesses should respect, protect and make efforts to restore the environment
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
P8 Businesses should support inclusive growth and equitable development
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner

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Annual Report 2020

P1 P2 P3 P4 P5 P6 P7 P8 P9
Do you have a Y Y Y Y Y Y Y Y Y
policy/policies • Code of Conduct • Business • P olicy on redressal of • P olicy on • Whistleblower • P olicy on • Policy on • Policy on • Frame-
for… strategy and Workplace Harass- Corporate Social Policy Environment Social Media Corporate work
• Code of Ethics
planning ment Responsibility • P olicy on • Policy for Social on Net
• Whistleblower Policy framework Responsibility Promoter
• Policy on redressal of • C ode of Ethics Modern interaction
• Policy for determining • Supplier Code Sexual Harassment Slavery through media Score
Materiality for • E qual
of conduct • Equal Opportunity Opportunity
Disclosures
Environment Policy Environment
• Code of Practices and Policy

Corporate Overview
Procedures for Fair • Maternity & Day Care
Disclosure of UPSI Policy
• Supplier Code of • Internal Mobility
Conduct Policy
• Policy on Anti-Money • Corporate framework
Laundering & on Rewards &
Countering Terrorist Recognition
Financing • Leave Policy
• Policy on Facility for
Late Sitting
• Transfer and
Relocation Policy
• Education
reimbursement Policy
• Policy on Paid
sabbatical leave

Statuory Reports
• Short term loan Policy
• Guidelines on Flexible
Work Timing
• Guidelines on
Mediclaim
Has the Y Y Y Y Y Y Y Y Y
policy been
formulated in
consultation
with the
relevant
stakeholders?
Does the policy Y Y Y Y Y Y Y Y Y
conform to
any national/

Financial Statements
international
standards?
Has the policy Y Approved at Approved at desired Approved at Approved at Approved at Approved at Approved at Y
been approved desired level as level as required desired level as desired level desired level desired level as desired level
by the Board? required by law by law required by law as required as required required by law as required
If yes, has it by law by law by law
been signed
by Managing
Director /
Owner/CEO/
appropriate
Board Director?
Does the Y Y Y Y Y Y Y Y Y
company have
a specified
committee
of the Board/
Director/official
to oversee the
implementation
of the policy?

109
CRISIL Limited

P1 P2 P3 P4 P5 P6 P7 P8 P9
Indicate the link Code of Conduct, Code Supplier Code Available on company Policy on Whistleblower Available on Available on Policy on Available on
for the policy of Ethics, Whistleblower of Conduct intranet Corporate Social Policy and company company Corporate company
to be viewed Policy, Policy for available on Responsibility Policy on intranet intranet Social intranet
online determining Materiality [Link]. com and Code of Modern Responsibility
for Disclosures, Code and rest are Ethics on www. Slavery is on on [Link].
of Practices and Company crisil. com and [Link]. com
Procedures for Fair internal Equal Opportunity com
Disclosure of UPSI, documents Environment
Supplier Code of Policy is available
Conduct available on on company
[Link]. com and intranet
the rest on company
intranet
Does the Y Y Y Y Y Y Y Y Y
company
have in-house
structure to
implement the
policy/policies?
Does the Y Y Y Y Y Y Y Y Y
company have
a grievance
redressal
mechanism
to address
stakeholders’
grievances
related to the
policy/policies?
Has the N N N N N N N N N
company
carried out an
independent
audit/evaluation
of the working
of this policy
by an internal
or external
agency?

3. If answer to S No. 1 against any principle is ‘no’, please explain why – Not applicable

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The company has not understood the principles
2. The company is not at a stage where it finds itself in a position to
formulate and implement the policies on specified principles
3. The company does not have financial or manpower resources
available for the task
4. It is planned to be done within the next six months
5. It is planned to be done within the next one year
6. Any other reason (please specify)

Section E: Principle-wise performance

Principle Reported in
Principle No. 1: Businesses should conduct and govern themselves with ethics, transparency and accountability
1. Does the policy relating to ethics, bribery and corruption cover only the company?
Does it extend to the group/joint ventures/suppliers/contractors/NGOs /others? Section titled ‘Ethics, transparency
2. How many stakeholder complaints have been received in the past financial year and accountability’ in the Business
and what percentage was satisfactorily resolved by the management? If so, Responsibility Report
provide details thereof in about 50 words or so

110
Annual Report 2020

Principle No. 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout
their life cycle
1. List up to 3 of your products or services whose design has incorporated social or
environmental concerns, risks and/or opportunities
2. For each such product, provide the following details in respect of resource use
(energy, water, raw material, etc.) per unit of product (optional): A. Reduction during
sourcing/production/distribution achieved since the previous year throughout the
value chain? B. Reduction during usage by consumers (energy, water) has been
achieved since the previous year? Section titled ‘Sustainable services’

Corporate Overview
3. Does the company have procedures in place for sustainable sourcing (including in the Business Responsibility Report
transportation)? If yes, what percentage of your inputs was sourced sustainably?
Also, provide details thereof, in about 50 words or so.
4. Has the company taken any steps to procure goods and services from local and
small producers, including communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity and capability of local and
small vendors?
5. Does the company have a mechanism to recycle products and waste? If yes, what
Section titled ‘Environment’ in the
is the percentage of recycling of products and waste (separately as <5%, 5-10%,
Business Responsibility Report
>10%)? Also, provide details thereof, in about 50 words or so.

Principle No. 3: Businesses should promote the wellbeing of all employees

1. Please indicate the total number of employees
2. Please indicate the total number of employees hired on temporary/contractual/
casual basis

Statuory Reports
3. Please indicate the number of permanent women employees
4. Please indicate the number of permanent employees with disabilities
5. Do you have an employee association that is recognised by the management?
6. What percentage of your permanent employees are members of this employee
association?
Section titled ‘Our employees’ in the
7. Please indicate the number of complaints relating to child labour, forced labour,
Business Responsibility Report
involuntary labour, sexual harassment filed in the last financial year and pending,
as on the end of the financial year
8. What percentage of the following employees were given safety & skill upgradation
training in the last year:
• Permanent employees
• Permanent women employees
• Casual/temporary/contractual employees
• Employees with disabilities

Financial Statements
Principle No. 4: Businesses should respect the interests of and be responsive towards all stakeholders, especially those
who are disadvantaged, vulnerable and marginalised
1. Has the company mapped its internal and external stakeholders?
2. Out of the above, has the company identified the disadvantaged, vulnerable & Section titled ‘Stakeholder
marginalised stakeholders? engagement’ and ‘Sustainable Supply
3. Are there any special initiatives taken by the company to engage with the Chain’ in the Business Responsibility
disadvantaged, vulnerable and marginalised stakeholders? If so, provide details Report
thereof, in about 50 words or so.
Principle No. 5: Businesses should respect and promote human rights
1. Does the policy of the company on human rights cover only the company or extend
to the group/joint ventures/suppliers/contractors/NGOs/others? Section titled ‘Human rights’ in the
2. How many stakeholder complaints have been received in the past financial year Business Responsibility Report
and what percent was satisfactorily resolved by the management?

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CRISIL Limited

Principle No. 6: Businesses should respect, protect and make efforts to restore the environment
1. Does the policy related to Principle 6 cover only the company or extend to the
group/joint ventures/suppliers/contractors/NGOs/others?
2. Does the company have strategies/initiatives to address global environmental
issues such as climate change and global warming? If yes, please give hyperlink
for webpage etc.
3. Does the company identify and assess potential environmental risks?
4. Does the company have any project related to clean development mechanism?
If so, provide details thereof, in about 50 words or so. Also, if yes, whether any Section titled ‘Environment’ in the
environmental compliance report is filed? Business Responsibility Report
5. Has the company undertaken any other initiatives on clean technology, energy
efficiency, renewable energy, etc.? If yes, please give hyperlink for webpage etc.
6. Are the emissions/waste generated by the company within the permissible limits
stipulated by the Central Pollution Control Board/State Pollution Control Board for
the financial year being reported?
7. Number of show cause/legal notices received from CPCB/SPCB which are pending
(i.e., not resolved to satisfaction) as on end of financial year

Principle No. 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
1. Is your company a member of any trade and chamber association?
2. If yes, name the major ones that your business deals with
3. Have you advocated/lobbied through above associations for the advancement or Section titled ‘Public policy advocacy’
improvement of public good? If yes, specify the broad areas (drop box: governance in the Business Responsibility Report
and administration, economic reforms, inclusive development policies, energy
security, water, food security, sustainable business principles, others)

Principle No. 8: Businesses should support inclusive growth and equitable development
1. Does the company have specified programmes/initiatives/projects in pursuit of
the policy related to Principle 8? If yes, details thereof
2 Are the programmes/projects undertaken through the in-house team?
3. Have you done any impact assessment of your initiative? Section titled ‘Inclusive growth’ in the
4. What is your company’s direct contribution to community development projects? Business Responsibility Report
Amount in Rs and the details of the projects undertaken
5. Have you taken steps to ensure that this community development initiative is
successfully adopted by the community? If yes, please explain in 50 words, or so.

Principle No. 9: Businesses should engage with and provide value to their customers and consumers in a responsible
manner
1. What percentage of customer complaints/consumer cases are pending as on the
end of financial year?
2. Does the company display product information on the product label, over and
above what is mandated as per local laws? Remarks (additional information)
Section titled ‘Customer value’ in the
3. Has any case been filed by any stakeholder against the company regarding unfair
Business Responsibility Report
trade practices, irresponsible advertising and/or anticompetitive behaviour during
the last five years and pending as on end of financial year? If so, provide details
thereof, in about 50 words or so.
4. Did your company carry out any consumer survey/consumer satisfaction survey?

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Annual Report 2020

Modern Slavery Act, 2015

Statement Due-diligence processes for slavery and human trafficking

This statement is published by CRISIL Ltd about and to As part of our initiative to identify and mitigate risk, we have
enable its subsidiaries that are subject to the Act, including in place systems to:
in particular CRISIL Irevna UK Ltd and Coalition UK Ltd

Corporate Overview
• Identify and assess potential risk areas in our supply
(subsidiaries). CRISIL and its subsidiaries are together chains
referred to as CRISIL entities.
• Mitigate the risk of slavery and human trafficking in our
Forced, bonded or compulsory labour, human trafficking and supply chains
other kinds of slavery signify some of the severest forms
of human rights abuse. We are committed to improving our • Monitor potential risk areas in our supply chains
practices to combat slavery and human trafficking. • Protect whistle blowers
• Where possible, build long-standing relationships with
Organisational structure local suppliers and make clear our expectations of
CRISIL Ltd provides ratings, research and risk and policy business behaviour
advisory services in the knowledge process and business
process outsourcing sector. S&P Global Inc is the parent Supplier adherence to our values
company. CRISIL has its registered office in Mumbai, India.
We operate in India, China, Singapore, England, Poland, We have zero tolerance to slavery and human trafficking. To

Statuory Reports
Argentina, Australia and the United States of America and ensure all those in our supply chain and contractors comply
have about 4,000 employees worldwide. with our values and ethics.

Our global annual turnover is in excess of £36 million.

Training
Our supply chains We provide training to our staff to ensure a high level of
understanding of the risks of modern slavery and human
Our supply chains include consultants, advisors, IT (hardware trafficking in our supply chains and our business.
and software) and other office equipment suppliers,
professional services from our lawyers, accountants and
other advisers, security, catering, office cleaning and other Our effectiveness in combating slavery and
office facilities services, staffing companies, etc. human trafficking
We require all of our suppliers to conduct business in a lawful The Act is relatively new and very few companies, including

Financial Statements
and ethical manner as part of our supplier on-boarding CRISIL entities, have experience of seeking out, let alone
process and accept our trading terms and conditions. detecting, slavery or trafficking among their own staff or
among their suppliers. To date, CRISIL entities are yet to
detect or suspect that any CRISIL entities or suppliers employ
Our policies on slavery and human trafficking persons who may be enslaved or trafficked. Therefore,
We are committed to ensuring that there is no modern slavery key performance indicators can be set only in respect of
or human trafficking in our supply chains or in any part of reasonable due diligence efforts once experience of the initial
our business. Our Modern Slavery Act, 2015, policy reflects outputs of such exercises are collated and analysed.
our commitment to acting ethically and with integrity in all This statement is made pursuant to Section 54(1) of the
our business relationships and implementing and enforcing Modern Slavery Act, 2015 and constitutes our slavery and
effective systems and controls, to ensure no slavery and human trafficking statement.
human trafficking takes place in our supply chains.

113
Going Beyond
in driving innovation

India’s first benchmark indices for

domestic AIF
Facilitating investments in new asset classes

Hyperlocal market intelligence framework

District-level risk tracking dashboard across 700
districts to assess opportunities and risk in
key segments

Financial conditions index

Tracking the health of financial markets

Scenario Expansion Manager

Unique stress-testing platform for banks
03
Financial
Statements
CRISIL Limited

Independent Auditor’s Report

To the Members of CRISIL Limited Basis for Opinion
Report on the Audit of the Consolidated Financial 3. We conducted our audit in accordance with the
Statements Standards on Auditing specified under section 143(10) of
the Act. Our responsibilities under those standards are
Opinion
further described in the Auditor’s Responsibilities for the
We have audited the accompanying consolidated
1.  Audit of the Consolidated Financial Statements section
financial statements of CRISIL Limited (‘the Holding of our report. We are independent of the Company in
Company’) and its subsidiaries (the Holding Company accordance with the Code of Ethics issued by the Institute
and its subsidiaries together referred to as ‘the Group’), of Chartered Accountants of India (‘the ICAI’) together
as listed in Annexure 1 which comprise the Consolidated with the ethical requirements that are relevant to our
Balance Sheet as at 31 December 2020, the Consolidated audit of the financial statements under the provisions of
Statement of Profit and Loss (including Other the Act and the rules thereunder, and we have fulfilled
Comprehensive Income), the Consolidated Cash Flow our other ethical responsibilities in accordance with
Statement and the Consolidated Statement of Changes these requirements and the Code of Ethics. We believe
in Equity for the year then ended, and a summary of the that the audit evidence we have obtained and the audit
significant accounting policies and other explanatory evidence obtained by other auditors in terms of their
information. reports referred to in paragraph 15 of the Other Matter
section below, is sufficient and appropriate to provide a
2. In our opinion and to the best of our information
basis for our opinion.
and according to the explanations given to us and
based on the consideration of the reports of the other Key Audit Matters
auditors on separate financial statements and on the
4. Key audit matters are those matters that, in our
other financial information of its subsidiaries and the
professional judgement and based on the consideration
branch of a subsidiary, the aforesaid consolidated
of the reports of the other auditors on separate financial
financial statements give the information required by
statements and on the other financial information of the
the Companies Act, 2013 (‘the Act’) in the manner so
subsidiaries and the branch of a subsidiary, were of most
required and give a true and fair view in conformity
significance in our audit of the consolidated financial
with the accounting principles generally accepted in
statements of the current period. These matters were
India including Indian Accounting Standards (‘Ind AS’)
addressed in the context of our audit of the consolidated
specified under section 133 of the Act, of the consolidated
financial statements as a whole, and in forming our
state of affairs of the Group as at 31 December 2020, and
opinion thereon, and we do not provide a separate
their consolidated profit (including other comprehensive
opinion on these matters.
income), consolidated cash flows and the consolidated
changes in equity for the year ended on that date.

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
Revenue recognition
The Group’s income from operations comprises of income Our audit of the recognition of contract revenue included, but
from initial rating and surveillance services, global research was not limited to, the following:
and analytical services, customised research, special
• Obtained an understanding of the revenue and receivable
assignments and subscriptions to information products
business process, and assessed the appropriateness of
and services, revenue from initial public offering (IPO)
the revenue recognition policies adopted by the Group;
grading services, independent equity research (IER) services,
infrastructure advisory and risk management services. Refer • Evaluated key controls around the recognition of
Note 2.18 to the consolidated financial statements, for details contract revenue. Tested the design, implementation and
of revenue recognised during the year. operating effectiveness of these identified key controls
during the year and as at the year-end.

116
Annual Report 2020

The application of this accounting standard is complex and • Evaluated the appropriateness of accounting policies
is an area of focus in the audit, as it involved application selected by the Group on the basis of our understanding
of significant judgements and estimates relating to of the Group, the nature and size of its operations and the
identification of distinct performance obligations, requirement of relevant accounting standards under the
determination of transaction price of identified performance Ind AS framework;
obligations, the appropriateness of the basis used to measure
• On a sample of contracts, tested the revenue recognition
revenue recognised over a period. Additionally, the standard
and our procedures included:
mandates robust disclosures in respect of revenue and

Corporate Overview
periods over which the remaining performance obligations - reviewing the contract terms and conditions;
will be satisfied subsequent to the balance sheet date.
- evaluating the identification of performance
Due to the significance of the item to the financial statements, obligations of the contract;
complexities involved and management judgement involved
- evaluating the appropriateness of management’s
for ensuring appropriateness of accounting treatment, this
assessment of manner of satisfaction of performance
matter has been identified as a key audit matter for the
obligations and consequent recognition of revenue;
current year’s audit.
and
- evaluating the reasonableness of the estimates
involved in the recognition of revenue from initial
rating and surveillance services including testing the
calculation of fee allocation to rating and surveillance,
in determining revenue from infrastructure advisory
and risk management services in accordance with

Statuory Reports
the percentage of completion method etc.;
• Tested revenue recognition for cut-off transactions
on sample basis to assess whether timing of revenue
recognition is appropriate;
• Evaluated the appropriateness and adequacy of the
disclosures made in the accompanying consolidated
financial statements for revenue recorded during the
year.
Accounting for acquisition of Greenwich Associates LLC
As described in Note 44 to the accompanying consolidated Our audit included, but was not limited to, the following
financial statements, the Group has completed acquisition procedures:
of 100% stake in Greenwich Associates LLC (USA) and its

Financial Statements
• Obtained and reviewed the documents pertaining to
subsidiaries (‘GA’), on February 26, 2020, through CRISIL
the acquisition, such as equity purchase agreement
Irevna US LLC, a step subsidiary of the Holding Company,
to understand the key terms and conditions of the
at a total value of USD 40 million, which includes upfront
acquisition;
and deferred consideration. This transaction falls under
the scope of Ind AS 103 ‘Business Combinations’, which • Evaluated the design and tested the operating
requires significant management judgement in determining effectiveness of the Group’s internal controls over the
the fair value of assets and liabilities that are recognised on accounting of business combination transactions;
acquisition, including for intangible assets.
• Understood the nature of the transaction and assessed
Fair value of intangibles was determined by the Company with the appropriateness of the accounting treatment in
the assistance of an external valuation expert using various relation to the Group’s accounting policies and Ind AS;
valuation models, which were applied based on several key
• Obtained report of the management’s external valuation
assumptions.
specialists to value significant intangibles acquired
Given the complexity and judgement involved in the fair value in business combination. Assessed the competence,
measurement and significance of the acquisition transaction capabilities and objectivity of the expert engaged by the
made by the Group, this matter has been identified as a key Holding Company, and gained an understanding of the
audit matter for the current year’s audit. work of the expert by reviewing the valuation reports;

117
CRISIL Limited

• Involved our internal valuation specialists to challenge the

reasonableness of key assumptions, review the purchase
price allocation adjustments and the identification and
valuation of acquired intangible assets based on our
knowledge of the Company and the industry, and;
• Evaluated the appropriateness and adequacy of the
disclosures made in the accompanying consolidated
financial statements in respect of the acquisition.

Information other than the Consolidated Financial and estimates that are reasonable and prudent; and
Statements and Auditor’s Report thereon design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
6. The Holding Company’s Board of Directors are
for ensuring the accuracy and completeness of the
responsible for the other information. The other
accounting records, relevant to the preparation and
information comprises the information included in the
presentation of the financial statements that give a true
Annual Report, but does not include the consolidated
and fair view and are free from material misstatement,
financial statements and our auditor’s report thereon.
whether due to fraud or error. These financial statements
Our opinion on the consolidated financial statements have been used for the purpose of preparation of the
does not cover the other information and we will not consolidated financial statements by the Directors of the
express any form of assurance conclusion thereon. Holding Company, as aforesaid.
In connection with our audit of the consolidated 8. In preparing the consolidated financial statements, the
financial statements, our responsibility is to read the respective Board of Directors of the companies included
other information and, in doing so, consider whether in the Group are responsible for assessing the ability of
the other information is materially inconsistent with the Group to continue as a going concern, disclosing, as
the consolidated financial statements or our knowledge applicable, matters related to going concern and using
obtained in the audit or otherwise appears to be materially the going concern basis of accounting unless the Board of
misstated. If, based on the work we have performed, we Directors either intends to liquidate the Group or to cease
conclude that there is a material misstatement of this operations, or has no realistic alternative but to do so.
other information, we are required to report that fact. We
9. Those Board of Directors are also responsible for
have nothing to report in this regard.
overseeing the financial reporting process of the
Responsibilities of Management and Those Charged companies included in the Group.
with Governance for the Consolidated Financial
Auditor’s Responsibilities for the Audit of the
Statements
Financial Statements
7. The accompanying consolidated financial statements
10. Our objectives are to obtain reasonable assurance about
have been approved by the Holding Company’s Board
whether the financial statements as a whole are free from
of Directors. The Holding Company’s Board of Directors
material misstatement, whether due to fraud or error,
is responsible for the matters stated in section 134(5)
and to issue an auditor’s report that includes our opinion.
of the Act with respect to the preparation of these
Reasonable assurance is a high level of assurance, but is
consolidated financial statements that give a true
not a guarantee that an audit conducted in accordance
and fair view of the consolidated financial position,
with Standards on Auditing will always detect a material
consolidated financial performance including other
misstatement when it exists. Misstatements can arise
comprehensive income, consolidated changes in equity
from fraud or error and are considered material if,
and consolidated cash flows of the Group in accordance
individually or in the aggregate, they could reasonably be
with the accounting principles generally accepted in
expected to influence the economic decisions of users
India, including the Ind AS specified under section 133
taken on the basis of these financial statements.
of the Act. The Holding Company’s Board of Directors
is also responsible for ensuring accuracy of records 11. As part of an audit in accordance with Standards on
including financial information considered necessary Auditing, we exercise professional judgement and
for the preparation of consolidated Ind AS financial maintain professional skepticism throughout the audit.
statements. Further, in terms of the provisions of the Act, We also:
the respective Board of Directors/management of the
• Identify and assess the risks of material
companies included in the Group, covered under the Act
misstatement of the financial statements, whether
are responsible for maintenance of adequate accounting
due to fraud or error, design and perform audit
records in accordance with the provisions of the Act for
procedures responsive to those risks, and obtain
safeguarding the assets and for preventing and detecting
audit evidence that is sufficient and appropriate
frauds and other irregularities; selection and application
to provide a basis for our opinion. The risk of not
of appropriate accounting policies; making judgements

118
Annual Report 2020

detecting a material misstatement resulting from 13. We also provide those charged with governance with
fraud is higher than for one resulting from error, a statement that we have complied with relevant
as fraud may involve collusion, forgery, intentional ethical requirements regarding independence, and to
omissions, misrepresentations, or the override of communicate with them all relationships and other
internal control; matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures 14. From the matters communicated with those charged
that are appropriate in the circumstances. Under with governance, we determine those matters that

Corporate Overview
section 143(3)(i) of the Act, we are also responsible were of most significance in the audit of the financial
for expressing our opinion on whether the Holding statements of the current period and are therefore the
Company has adequate internal financial controls key audit matters. We describe these matters in our
with reference to financial statements in place and auditor’s report unless law or regulation precludes
the operating effectiveness of such controls; public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter
• Evaluate the appropriateness of accounting
should not be communicated in our report because the
policies used and the reasonableness of accounting
adverse consequences of doing so would reasonably be
estimates and related disclosures made by
expected to outweigh the public interest benefits of such
management;
communication.
• Conclude on the appropriateness of management’s
Other Matter
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a 15. We did not audit the financial statements of 7
material uncertainty exists related to events or subsidiaries and one branch of a subsidiary, whose
conditions that may cast significant doubt on the financial statements reflects total assets of Rupees

Statuory Reports
ability of the Group to continue as a going concern. 13,555.64 lakhs and net assets of Rupees 3,327.62
If we conclude that a material uncertainty exists, lakhs as at 31 December 2020, total revenues of Rupees
we are required to draw attention in our auditor’s 25,232.42 lakhs and net cash outflows amounting to
report to the related disclosures in the consolidated Rupees 976.21 lakhs for the year ended on that date,
financial statements or, if such disclosures are as considered in the consolidated financial statements.
inadequate, to modify our opinion. Our conclusions These financial statements have been audited by the
are based on the audit evidence obtained up to the other auditors, whose reports have been furnished to us
date of our auditor’s report. However, future events by the management, and our opinion on the consolidated
or conditions may cause the Group to cease to financial statements, in so far as it relates to the
continue as a going concern; amounts and disclosures included in respect of these
subsidiaries and branch of a subsidiary, and our report
• Evaluate the overall presentation, structure and
in terms of sub-section (3) of Section 143 of the Act, in so
content of the financial statements, including the
far as it relates to the aforesaid subsidiaries and branch

Financial Statements
disclosures, and whether the financial statements
of a subsidiary are based solely on the audit report of the
represent the underlying transactions and events in
other auditors.
a manner that achieves fair presentation; and
Further, all the subsidiaries and branch of the subsidiary
• Obtain sufficient appropriate audit evidence
referred above are located outside India, whose financial
regarding the financial information of the entities
statements and other financial information have been
within the Group, to express an opinion on the
prepared in accordance with accounting principles
financial statements. We are responsible for the
generally accepted in its respective countries and which
direction, supervision and performance of the audit
have been audited by other auditors under generally
of financial statements of such entities included
accepted auditing standards applicable in the respective
in the financial statements, of which we are the
countries. The Holding Company’s management has
independent auditors. For the other entities included
converted the financial statements of such subsidiaries
in the financial statements, which have been audited
and branch of a subsidiary located outside India
by the other auditors, such other auditors remain
from accounting principles generally accepted in
responsible for the direction, supervision and
their respective countries to accounting principles
performance of the audits carried out by them. We
generally accepted in India. We have audited these
remain solely responsible for our audit opinion.
conversion adjustments made by the Holding Company’s
12. We communicate with those charged with governance management. Our opinion on the consolidated financial
regarding, among other matters, the planned scope statements, in so far as it relates to the balances and
and timing of the audit and significant audit findings, affairs of such subsidiaries and branch of a subsidiary
including any significant deficiencies in internal control located outside India are based on the report of the other
that we identify during our audit. auditors and the conversion adjustments prepared by the
management of the Holding Company and audited by us.

119
CRISIL Limited

Our opinion above on the consolidated financial f) with respect to the adequacy of the internal
statements, and our report on other legal and regulatory financial controls with reference to the financial
requirements below, are not modified in respect of the statements of Holdling Company and its subsidiary
above matters with respect to our reliance on the work companies covered under the Act, and the operating
done by and the reports of the other auditor. effectiveness of such controls, refer to our separate
report in ‘Annexure I’; and
Report on Other Legal and Regulatory Requirements
g) with respect to the other matters to be included in
16. As required by section 197(16) of the Act, based on our
the Auditor’s Report in accordance with rule 11 of
audit, we report that the Holding Company and its two
the Companies (Audit and Auditors) Rules, 2014
subsidiary companies covered under the Act, paid
(as amended), in our opinion and to the best of our
remuneration to their respective directors during the
information and according to the explanations
year in accordance with the provisions of and limits laid
given to us and based on the consideration of the
down under section 197 read with Schedule V to the Act.
report of the other auditors and branch auditor on
Further, we report that one subsidiary company covered
separate financial statements as also the other
under the Act has not paid or provided for any managerial
financial information of subsidiaries and a branch of
remuneration during the year.
a subsidiary:
17. As required by Section 143 (3) of the Act, based on our
i. the consolidated financial statements disclose
audit and on the consideration of the reports of the other
the impact of pending litigations on the
auditors on separate financial statements and other
consolidated financial position of the Group as
financial information of its subsidiaries and branch of a
detailed in Note 36 (A) (2) to the consolidated
subsidiary we report, to the extent applicable, that:
financial statements;
a) we have sought and obtained all the information and
ii. the Holding Company did not have any long-
explanations which to the best of our knowledge and
term contracts including derivative contracts
belief were necessary for the purpose of our audit of
for which there were any material foreseeable
the aforesaid consolidated financial statements;
losses as at 31 December 2020;
b) in our opinion, proper books of account as required
iii. there has been no delay in transferring amounts,
by law relating to preparation of the aforesaid
required to be transferred, to the Investor
consolidated financial statements have been kept
Education and Protection Fund by the Holding
so far as it appears from our examination of those
Company, and its subsidiary companies, during
books and the reports of the other auditors;
the year ended 31 December 2020; and
c) the consolidated financial statements dealt with by
iv. the disclosure requirements relating to holdings
this report are in agreement with the relevant books
as well as dealings in specified bank notes were
of account maintained for the purpose of preparation
applicable for the period from 8 November 2016
of the consolidated financial statements;
to 30 December 2016, which are not relevant to
d) in our opinion, the aforesaid consolidated financial these consolidated financial statements. Hence,
statements comply with Ind AS specified under reporting under this clause is not applicable.
section 133 of the Act;
e) on the basis of the written representations received
For Walker Chandiok & Co LLP
from the directors of the Holding Company and taken
Chartered Accountants
on record by the Board of Directors of the Holding
Firm’s Registration No.: 001076N/N500013
Company and the reports of the statutory auditor
of its subsidiary companies, covered under the
Act, none of the directors of the Group companies,
Khushroo B. Panthaky
covered under the Act, are disqualified as on 31
Partner
December 2020 from being appointed as a director
Membership No.: 042423
in terms of Section 164(2) of the Act.
UDIN: 21042423AAAAAY4648
Place: Mumbai
Date: 11 February 2021

120
Annual Report 2020

Annexure 1
List of subsidiaries included in the Statement
1. CRISIL Risk and Infrastructure Solutions Limited
2. CRISIL Irevna UK Limited
3. CRISIL Irevna US LLC
4. CRISIL Irevna Poland [Link].

Corporate Overview
5. CRISIL Irevna Information Technology (Hangzhou) Co. Ltd.
6. Coalition Development Limited
7. Coalition Development Singapore Pte. Ltd.
8. CRISIL Irevna Argentina S.A
9. Pragmatix Services Private Limited
10. CRISIL Ratings Limited
11. Greenwich Associates LLC
12. Greenwich Associates Singapore Pte. Limited
13. Greenwich Associates Japan K.K.
14. Greenwich Associates Canada, ULC

Statuory Reports
15. Greenwich Associates UK Limited
16. Greenwich Associates UK (Holdings) Limited
17. G
 reenwich Associates International, LLC (merged into
Greenwich Associates LLC w.e.f 22 December 2020)
18. CRISIL Irevna Australia Pty Ltd

Financial Statements

121
CRISIL Limited

Annexure I to the Independent Auditor’s Report of even date to the members of CRISIL Limited
on the consolidated financial statements
for the year ended December 31, 2020

Annexure I Independent Auditor’s Report on the internal statements, and the Guidance Note issued by the ICAI.
financial controls with reference to financial statements Those Standards and the Guidance Note require that we
under Clause (i) of Sub-section 3 of Section 143 of the comply with ethical requirements and plan and perform
Companies Act, 2013 (‘the Act’) the audit to obtain reasonable assurance about whether
adequate internal financial controls with reference to
1. In conjunction with our audit of the consolidated
financial statements were established and maintained
financial statements of CRISIL Limited (‘the Holding
and if such controls operated effectively in all material
Company’) and its subsidiaries (the Holding Company
respects.
and its subsidiaries together referred to as ‘the Group’),
as at and for the year ended 31 December 2020, we have 4. Our audit involves performing procedures to obtain audit
audited the internal financial controls with reference evidence about the adequacy of the internal financial
to financial statements of the Holding Company and controls with reference to financial statements and
its three subsidiary companies, which are companies their operating effectiveness. Our audit of internal
covered under the Act, as at that date. financial controls with reference to financial statements
includes obtaining an understanding of such internal
Responsibilities of Management and Those Charged
financial controls, assessing the risk that a material
with Governance for Internal Financial Controls
weakness exists, and testing and evaluating the design
2. The respective Board of Directors of the Holding and operating effectiveness of internal control based
Company and its three subsidiary companies, which on the assessed risk. The procedures selected depend
are companies covered under the Act, are responsible on the auditor’s judgement, including the assessment
for establishing and maintaining internal financial of the risks of material misstatement of the financial
controls based on the internal financial controls with statements, whether due to fraud or error.
reference to financial statements criteria established
5. We believe that the audit evidence we have obtained is
by the Company considering the essential components
sufficient and appropriate to provide a basis for our audit
of internal control stated in the Guidance Note on Audit
opinion on the internal financial controls with reference
of Internal Financial Controls over Financial Reporting
to financial statements of the Holding Company and its
(‘the Guidance Note’) issued by the Institute of Chartered
three subsidiary companies as aforesaid.
Accountants of India (‘ICAI’). These responsibilities
include the design, implementation and maintenance of Meaning of Internal Financial Controls with Reference
adequate internal financial controls that were operating to Financial Statements
effectively for ensuring the orderly and efficient conduct
6. A company’s internal financial controls with reference
of the Company’s business, including adherence to
to financial statements is a process designed to
the Company’s policies, the safeguarding of its assets,
provide reasonable assurance regarding the reliability
the prevention and detection of frauds and errors,
of financial reporting and the preparation of financial
the accuracy and completeness of the accounting
statements for external purposes in accordance with
records, and the timely preparation of reliable financial
generally accepted accounting principles. A company’s
information, as required under the Act.
internal financial controls with reference to financial
Auditor’s Responsibility for the Audit of the Internal statements include those policies and procedures that (1)
Financial Controls with Reference to Financial pertain to the maintenance of records that, in reasonable
Statements detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide
3. Our responsibility is to express an opinion on the internal
reasonable assurance that transactions are recorded as
financial controls with reference to financial statements
necessary to permit preparation of financial statements
of the Holding Company and its three subsidiary
in accordance with generally accepted accounting
companies, as aforesaid, based on our audit. We
principles, and that receipts and expenditures of
conducted our audit in accordance with the Standards
the company are being made only in accordance
on Auditing issued by the ICAI prescribed under Section
with authorisations of management and directors of
143(10) of the Act, to the extent applicable to an audit
the company; and (3) provide reasonable assurance
of internal financial controls with reference to financial
regarding prevention or timely detection of unauthorised

122
Annual Report 2020

acquisition, use, or disposition of the company’s assets under the Act, have in all material respects, adequate
that could have a material effect on the financial internal financial controls with reference to financial
statements. statements and such controls were operating effectively
as at 31 December 2020, based on the internal financial
Inherent Limitations of Internal Financial Controls
controls with reference to financial statements criteria
with Reference to Financial Statements
established by the Company considering the essential
7. Because of the inherent limitations of internal financial components of internal control stated in the Guidance
controls with reference to financial statements, including Note issued by the ICAI.
the possibility of collusion or improper management

Corporate Overview
override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections For Walker Chandiok & Co LLP
of any evaluation of the internal financial controls with Chartered Accountants
reference to financial statements to future periods are Firm’s Registration No.: 001076N/N500013
subject to the risk that the internal financial controls
with reference to financial statements may become
inadequate because of changes in conditions, or that Khushroo B. Panthaky
the degree of compliance with the policies or procedures Partner
may deteriorate. Membership No.: 042423

Opinion UDIN: 21042423AAAAAY4648

8. In our opinion, the Holding Company and its three Place: Mumbai
subsidiary companies, which are companies covered Date: 11 February 2021

Statuory Reports
Financial Statements

123
CRISIL Limited

Consolidated Balance Sheet

as at December 31, 2020

(Rupees in lakhs)
As at As at
Particulars Notes
December 31, 2020 December 31, 2019
ASSETS
1. Non-current assets
(a) Property, plant and equipment 3A 4,102 3,512
(b) Right of Use Asset 3B 20,908 -
(c) Goodwill 4 37,586 28,861
(d) Intangible assets 5 13,656 2,515
(e) Intangible assets under development 1,357 1,180
(f) Financial assets
i. Investments 6 17,028 20,080
ii. Loans 7 2,455 3,421
iii. Other financial assets 8 108 87
(g) Deferred tax assets (net) 9 6,406 4,259
(h) Tax assets 10 7,969 7,396
(i) Other non-current assets 11 654 1,066
2. Current assets
(a) Financial assets
i. Investments 6 30,574 25,225
ii. Trade receivables 12 30,736 19,937
iii. Cash and cash equivalents 13 27,488 34,169
iv. Other bank balances 14 380 389
v. Loans 15 2,121 722
vi. Other financial assets 16 10,176 7,901
(b) Other current assets 17 6,643 7,835
3. Asset held for sale 18 318 318
TOTAL ASSETS 220,665 168,873

EQUITY AND LIABILITIES

1. Equity
(a) Equity share capital 19 726 723
(b) Other equity 130,455 116,469
2. Non-current liabilities
(a) Financial liabilities
i. Borrowings 20 - 4
ii. Other financial liabilities 21 18,461 782
(b) Provisions 22 2,139 1,514
3. Current liabilities
(a) Financial liabilities
i. Short term borrowings 23 - 258
ii. Trade payables 24
- to micro enterprises and small enterprises 10 3
- to others 10,526 7,543
iii. Other financial liabilities 25 24,541 16,035
(b) Provisions 26 8,388 6,613
(c) Tax liabilities 27 1,620 1,530
(d) Other current liabilities 28 23,799 17,399
TOTAL EQUITY AND LIABILITIES 220,665 168,873
Summary of significant accounting policies 2
The accompanying notes are an integral part of the consolidated financial statements.

This is the Balance Sheet

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

124
Annual Report 2020

Consolidated Statement of Profit and Loss

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars Notes
December 31, 2020 December 31, 2019
Income

Corporate Overview
Revenue from operations 29 198,183 173,172
Other income 30 8,315 7,284
Total 206,498 180,456
Expenses
Employee benefit expenses 31 106,844 87,756
Finance cost 32 1,439 23
Depreciation and amortisation expenses 3A, 3B & 5 12,111 3,686
Other expenses 33 40,275 39,832
Total 160,669 131,297
Profit before tax 45,829 49,159
Tax expense 9
Current tax 11,984 13,115
Deferred tax (1,628) 1,649
Total tax expense 10,356 14,764
Profit after tax for the year 35,473 34,395
Other comprehensive (income)/expense (OCI)
A. Items that will be reclassified to profit or loss:
Exchange differences in translating the financial statements of a foreign operation (2,078) (845)

Statuory Reports
The effective portion of gains or (loss) on hedging instruments in a cash flow hedge (605) 290
Tax effect on above 153 (101)
B. Items that will not be reclassified to profit or loss:
Remeasurements of the defined benefit plans 513 252
Equity instruments through other comprehensive income 3,052 9,279
Tax effect on above (150) (100)
Total comprehensive income for the year 34,588 25,620
Profit attributable to:
Owners of the Company 35,473 34,395
Non-controlling interest - -
Total comprehensive income attributable to:
Owners of the Company 34,588 25,620
Non-controlling interest - -
Earnings per share : Nominal value of Re. 1 per share 46
Basic 48.93 47.61
Diluted 48.90 47.55

Financial Statements
Number of equity shares used in computing earnings per share
Basic 72,494,072 72,243,688
Diluted 72,547,286 72,339,528
Summary of significant accounting policies 2
The accompanying notes are an integral part of the consolidated financial statements.

This is the Statement of Profit and Loss

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

125
CRISIL Limited

Consolidated Cash Flow Statement

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
A. Cash flow from operating activities:
Profit before tax 45,829 49,159
Adjustments for :
Depreciation/Amortisation 12,111 3,686
Interest income on financial assets carried at amortized cost (257) (230)
Waiver of lease liability (208) -
Hyperinflation impact (Refer Note 41) 121 142
Unrealised foreign exchange loss (577) 192
(Profit)/Loss on sale of Property, Plant and Equipment (9) (27)
(Profit)/ loss on sale of current investments (703) (981)
(Profit)/ loss on fair valuation of current investments (268) (387)
Provision for doubtful debts / bad debts 94 -
Provision for doubtful deposits 45 -
Excess provision written back (395) (349)
Interest on bank deposits (173) (109)
Interest on Income tax refund (3) (369)
Share based payment to employees 248 814
Dividend on investments (441) (777)
Interest on Lease Liability 1,410 -
Interest on bank overdraft 29 23
Operating profit before working capital changes 56,853 50,787
Movements in working capital
(Increase)/decrease in trade receivables (4,738) 8,579
(Increase)/decrease in loans (221) 616
(Increase)/decrease in other non current assets 60 (389)
(Increase)/decrease in other current financial assets 2,908 1,212
(Increase)/decrease in other current assets 677 (3,379)
Increase/(decrease) in trade payables 1,533 1,113
Increase/(decrease) in provisions 1,887 347
Increase/(decrease) in other current financial liabilities (712) 210
Increase/(decrease) in other current liabilities 3,203 34
Increase/(decrease) in other non current financial liabilities 1,099 8
Cash generated from operations 62,549 59,138
Taxes paid (12,502) (14,552)
Net cash generated from operating activities - (A) 50,047 44,586

126
Annual Report 2020

Consolidated Cash Flow Statement

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
B. Cash flow from investing activities :

Corporate Overview
Purchase of property, plant and equipment and intangible assets (including movement of (3,492) (2,906)
intangible assets under development and capital advances) net of proceeds from sales
Proceeds from sale of property, plant and equipment and intangible assests 88 138
Investments in mutual funds (net of proceeds) (4,378) (5,554)
Payment made for acquisition of Greewich Associates LLC (25,117) -
Interest on Income tax refund 3 369
Interest on bank deposits 177 112
Fixed deposits placed (8) (33)
Dividend on investments 441 777
Net cash used in investing activities - (B) (32,286) (7,097)

C. Cash flow from financing activities :

Receipts from issuance of share capital on account of exercise of ESOS 3,522 2,295
Proceeds from /(repayment of) borrowings (9) (4)
Dividend and dividend tax paid (23,203) (25,162)

Statuory Reports
Payment of Lease Liability (6,791) -
Interest expense/finance cost (29) (23)
Net cash generated from/(used in) financing activities - (C) (26,510) (22,894)
Net increase/(decrease) in cash and cash equivalents (A+B+C) (8,749) 14,595
Add / (less) : adjustment towards acquisition / (divesture) - (D) 2,530 -
Net increase/(decrease) in cash and cash equivalents (A+B+C+D) (6,219) 14,595
Cash and cash equivalents - Opening balance 33,911 19,949
Add : Exchange difference on translation of foreign currency cash and cash equivalents (204) (633)
Cash and cash equivalents - Closing balance 27,488 33,911
Net Increase/(decrease) in cash and cash equivalents (6,219) 14,595
Components of cash and cash equivalents :-
Cash on hand and balances with banks on current account 26,822 11,636
Deposits with original maturity of less than three months 666 22,533
Bank and book overdraft - (258)

Financial Statements
Total 27,488 33,911

The accompanying notes are an integral part of the consolidated financial statements.

This is the Cash Flow Statement

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

127
128
Statement of Changes in Consolidated Equity
for the year ended December 31, 2020
CRISIL Limited

A. Equity share capital (Rupees in lakhs)

Balance as at January 1, 2020 Changes in equity share capital during the year Balance as at December 31, 2020
(Refer Note 19)
723 3 726

Balance as at January 1, 2019 Changes in equity share capital during the year Balance as at December 31, 2019
(Refer Note 19)
721 2 723

B. Other equity (Rupees in lakhs)

Reserves & Surplus Items of Other Comprehensive Total
Income (OCI)
Capital Securities General Share- Special Retained Equity Currency Hedge
Particulars redemption premium reserve based Economic earnings Instruments fluctuation reserve
reserve reserve payment Zone (SEZ) through OCI reserve
reserve reinvestment
reserve
(Refer Note 19.1)
Balance as at January 1, 2020 27 20,107 14,115 6,668 - 99,982 (24,514) 44 40 116,469
Profit for the year - - - - - 35,473 - - - 35,473
Additions during the year - 3,519 - - - - - - - 3,519
Other comprehensive income - - - - - (384) (3,031) 2,078 452 (885)
Share based payment to employees - - - 247 - - - - - 247
Final dividend (Refer note 47) - - - - - (9,422) - - - (9,422)
Interim dividend (Refer note 47) - - - - - (13,781) - - - (13,781)
Transitional Impact on implementation of Ind AS 116 - - - - - (1,165) - - - (1,165)
Leases (Refer note 39)
Exercise of stock option - 1,432 - (1,432) - - - - - -
Balance as at December 31, 2020 27 25,058 14,115 5,483 - 110,703 (27,545) 2,122 492 130,455
 Statement of Changes in Consolidated Equity
for the year ended December 31, 2020

(Rupees in lakhs)
Reserves & Surplus Items of Other Comprehensive Total
Annual Report 2020

Income (OCI)
Capital Securities General Share- Special Retained Equity Currency Hedge
Particulars redemption premium reserve based Economic earnings Instruments fluctuation reserve
reserve reserve payment Zone (SEZ) through OCI reserve
reserve reinvestment
reserve
(Refer Note 19.1)
Balance as at January 1, 2019 27 16,915 14,115 6,753 450 90,481 (15,265) (801) 229 112,904
Profit for the year - - - - - 34,395 - - - 34,395
Additions during the year - 2,293 - - - - - - - 2,293
Other comprehensive income - - - - - (182) (9,249) 845 (189) (8,775)
Share based payment to employees - - - 814 - - - - - 814
Final dividend (Refer note 47) - - - - - (7,938) - - - (7,938)
Interim dividend (Refer note 47) - - - - - (13,735) - - - (13,735)
Corporate dividend tax (Refer note 47) - - - - - (3,489) - - - (3,489)
Transfer to SEZ reinvestment reserve - - - - (450) 450 - - - -
Exercise of stock option - 899 - (899) - - - - - -
Balance as at December 31, 2019 27 20,107 14,115 6,668 - 99,982 (24,514) 44 40 116,469
The accompanying notes are an integral part of the consolidated financial statements.

This is the statement of changes in equity and Loss

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

129
Financial Statements Statuory Reports Corporate Overview
CRISIL Limited

Summary of significant accounting policies and other explanatory information to the

consolidated financial statements as at and for the year ended December 31, 2020

1 Corporate information subsidiaries have been changed where necessary to

align them with the policies adopted by the Company.
CRISIL Limited (‘the Company’ or ‘CRISIL’ or ‘Parent’) (CIN:
CIN L67120MH1987PLC042363) and its subsidiaries Transactions eliminated on consolidation:
(collectively referred to as ‘the Group’) is a globally- The financial statements of the Group Companies are
diversified analytical Company providing ratings, consolidated on a line-by-line basis and all intra-group
research, risk and policy advisory services. CRISIL is balances and transactions, and any unrealised income
India’s leading ratings agency and the foremost provider and expenses arising from intra-group transactions, are
of high-end research to the world’s largest banks and eliminated in full while preparing these consolidated
leading corporations. CRISIL delivers analysis, opinions, financial statements.
and solutions that make markets function better.
Functional and presentation currency:
CRISIL Limited is a public limited company, domiciled
in India. The registered office of the Company is located These consolidated financial statements are presented
at CRISIL House, Central Avenue, Hiranandani Business in Indian rupees, which is the functional currency of the
Park, Powai, Mumbai - 400076. The equity shares of parent company. All financial information is presented
the Company are listed on recognised stock exchanges in Indian rupees.
in India-the Bombay Stock Exchange and the National 2.3 Basis of preparation
Stock Exchange.
These consolidated financial statements have been
These consolidated financial statements for the year prepared under the historical cost convention on an
ended December 31, 2020 were approved by the Board accrual basis, except for certain financial instruments
of Directors on February 11, 2021. which are measured at fair value at the end of each
S&P Global Inc. the ultimate Holding Company, through reporting period. Historical cost is generally based on
its subsidiaries owned 67.13% as on December 31, 2020 the fair value of the consideration given in exchange for
of the Company’s equity share capital. (Refer Note 19). goods and services on the transaction date. Fair value is
the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
2 Summary of significant accounting policies market participants at the measurement date.
2.1 Statement of compliance
All the assets and liabilities have been classified as
These consolidated financial statements have been current or non- current as per the Group’s normal
prepared in accordance with Indian Accounting operating cycle and other criteria set out in Schedule
Standards (Ind AS) notified under the Companies III to the Companies Act, 2013. Based on the nature of
(Indian Accounting Standards) Rules, 2015 read with products and time between the acquisition of assets
Section 133 of Companies Act, 2013, (the ‘Act’) and other for processing and their realisation in cash or cash
relevant provisions of the Act. equivalents, the Group has ascertained its operating
cycle as twelve months for the purpose of current/non-
2.2 Basis of consolidation
current classification of assets and liabilities.
The Company consolidates all entities which are
2.4 Use of estimates and judgements
controlled by it. The consolidated financial statements
comprise the financial statements of the Company and The preparation of the consolidated financial
its subsidiaries as disclosed in Note 2.6. Control exists statements in conformity with Ind AS requires the
when the Company has power over the entity, is exposed, management to make estimates, judgements and
or has rights, to variable returns from its involvement assumptions that affect the reported balances of
with the entity and has the ability to affect those returns assets and liabilities (including contingent liabilities)
by using its power over the entity. Power is demonstrated as at the date of the consolidated financial statements
through existing rights that give the ability to direct and the reported income and expenses for the years
relevant activities, those which significantly affect the presented. Application of accounting policies that
entity’s returns. In assessing control, potential voting require critical accounting estimates involving complex
rights are considered only if the rights are substantive. and subjective judgements and the use of assumptions
The financial statements of subsidiaries are included in these consolidated financial statements have been
in these consolidated financial statements from the disclosed below. Accounting estimates could change
date that control commences until the date that control from period to period. Actual results could differ from
ceases. For the purpose of preparing these consolidated those estimates. Appropriate changes in estimates are
financial statements, the accounting policies of made as management becomes aware of changes in

130
Annual Report 2020

circumstances surrounding the estimates. Changes in date and alternate use of such product or service,
estimates are reflected in the consolidated financial transfer of significant risks and rewards to the
statements in the period in which changes are made customer, acceptance of delivery by the customer,
and, if material, their effects are disclosed in the notes etc.
to the consolidated financial statements.
Revenue for fixed-price contract is recognised
 Estimates and assumptions are required in particular using percentage-of-completion method. The
for: Group uses judgement to estimate the future
cost-to-completion of the contracts which is
• Useful life and residual value of property, plant

Corporate Overview
used to determine the degree of completion of the
and equipment (PPE) and intangible assets
performance obligation.
Useful lives of PPE and intangible assets are
Contract fulfilment costs are generally expensed
based on the life prescribed in Schedule II of the
as incurred except for certain software licence
Companies Act, 2013. In cases, where the useful
costs which meet the criteria for capitalisation.
lives are different from that prescribed in Schedule
Such costs are amortised over the contractual
II, they are based on technical advice, taking into
period or useful life of licence whichever is less. The
account the nature of the asset, the estimated
assessment of this criteria requires the application
usage of the asset, the operating conditions of the
of judgement, in particular when considering if
asset, past history of replacement, anticipated
costs generate or enhance resources to be used
technological changes, manufacturers’ warranties
to satisfy future performance obligations and
and maintenance support. Assumptions also need
whether costs are expected to be recovered.
to be made, when the Group assesses, whether an
asset may be capitalised and which components of • Recognition and measurement of defined benefit
the cost of the asset may be capitalised. obligations

Statuory Reports
• Goodwill impairment The obligation arising from defined benefit plan is
determined on the basis of actuarial assumptions.
The Group estimates the value in use of the
As actuarial valuation involves making various
cash generating unit (CGU) based on the future
assumptions that may be different from the
cash flows after considering current economic
actual development in the future, key actuarial
conditions and trends, estimated future operating
assumptions include discount rate, trends in salary
results and anticipated future economic and
escalation, attrition and mortality rate. The discount
regulatory conditions.
rate is determined by reference to market yields
Goodwill is tested for impairment, relying on a at the end of the reporting period on government
number of factors including operating results, bonds. The period to maturity of the underlying
business plans and future cash flows. Calculating bonds correspond to the probable maturity of the
the future net cash flows expected to be generated post-employment benefit obligations.

Financial Statements
to determine if impairment exists and to calculate
• Valuation of taxes on income
the impairment involves significant assumptions,
estimation and judgement. The estimated cash Significant judgements are involved in determining
flows are prepared using internal forecasts. the provision for income taxes, including the
amount expected to be paid or recovered in
• Revenue recognition
connection with uncertain tax positions. Uncertain
Revenue from rendering of services is recognised tax position is with regards to items of expense
when the obligation to render services based on or transaction that may be challenged by tax
agreements/arrangements with the customers authorities. The Group reviews the carrying amount
are satisfied and when there are no longer of deferred tax assets at the end of each reporting
any unfulfilled obligations. The performance period. The policy for the same has been explained
obligations in our contracts are fulfilled at the time under note 2.22
of delivery or upon formal customer acceptance
• Provisions
depending on customer terms. Revenue is only
recognised to the extent that it is highly probable a Provision is recognised when the Group has a
significant reversal will not ‘occur. present obligation as a result of past event and
it is probable that an outflow of resources will
The Group exercises judgement in determining
be required to settle the obligation, in respect
whether the performance obligation is satisfied
of which a reliable estimate can be made.
at a point in time or over a period of time. The
Provisions (excluding retirement obligations and
Group considers indicators such as how customer
compensated absences) are not discounted to its
consumes benefits as services are rendered or who
present value and are determined based on best
controls the asset as it is being created or existence
estimate required to settle the obligation as at the
of enforceable right to payment for performance to

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Consolidated Financial Statements

Balance Sheet date. These are reviewed at each entitled to the options. The expense is recorded for
balance sheet date adjusted to reflect the current each separately vesting portion of the award as if
best estimates. the award was, in substance, multiple awards. The
increase in equity recognised in connection with
• Business combinations and intangible assets
share-based payment transaction is presented
Business combinations are accounted for using as a separate component in equity under “share-
Ind AS 103, Business Combinations. Ind AS 103 based payment reserve”. The amount recognised as
requires the identifiable intangible assets and an expense is adjusted to reflect the impact of the
contingent consideration to be fair valued in order revision of original estimates based on number of
to ascertain the net fair value of identifiable assets, options that are expected to vest, in the statement
liabilities and contingent liabilities of the acquiree. of profit and loss with a corresponding adjustment
Significant estimates are required to be made in to equity.
determining the value of contingent consideration
2.5 Cash flow statement
and intangible assets. These valuations are
conducted by valuation experts. Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of
• Share-based payments
transactions of non-cash nature and any deferrals or
The grant date fair value of options granted to accruals of past or future cash receipts or payments and
employees is recognised as an employee expense, item of income or expenses associated with investing
with a corresponding increase in equity, over the or financing cash flows. Cash flow from operating,
period that the employees become unconditionally investing and financing activities are segregated.

2.6 The consolidated financial statements represent consolidation of accounts of the Company, its subsidiaries as
detailed below:

Name of the entities Country of incorporation Ownership in % either directly or

through subsidiaries
December 31, 2020 December 31, 2019
CRISIL Risk and Infrastructure Solutions Limited India 100% 100%
Pragmatix Services Private Limited (Refer Note 44) India 100% 100%
CRISIL Ratings Limited (Refer Note 42) India 100% 100%
CRISIL Irevna UK Limited United Kingdom 100% 100%
CRISIL Irevna US LLC United States of America 100% 100%
CRISIL Irevna Argentina S.A. Argentina 100% 100%
CRISIL Irevna Poland [Link].o. Poland 100% 100%
Coalition Development Limited United Kingdom 100% 100%
Coalition Development Singapore Pte Limited Singapore 100% 100%
CRISIL Irevna Information Technology (Hangzhou) Co., Ltd China 100% 100%
CRISIL Irevna Australia Pty Ltd Australia 100% NA
Greenwich Associates LLC United States of America 100% NA
Greenwich Associates International, LLC United States of America 100% NA
Greenwich Associates UK (Holdings) Limited United Kingdom 100% NA
Greenwich Associates Singapore PTE. LTD. Singapore 100% NA
Greenwich Associates Japan K.K. Japan 100% NA
Greenwich Associates Canada ULC Canada 100% NA
Greenwich Associates UK Limited United Kingdom 100% NA

2.7 Property, Plant and Equipment

Property, plant and equipment (PPE) are measured at cost less accumulated depreciation and impairment losses, if any.
Amount capitalised under property, plant and equipment includes purchase price, duties and taxes, other incidental
expenses incurred during the construction/installation stage. If significant parts of an item of property, plant and
equipment have different useful lives, then they are accounted for as separate items (major components) of property,
plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss on disposal of an item of property, plant and equipment is
recognised in the statement of profit and loss.

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Annual Report 2020

Capital work-in-progress in respect of assets which be impaired. For goodwill impairment testing, the
are not ready for their intended use are carried at cost, carrying amount of the CGUs (including allocated
comprising of direct costs, related incidental expenses goodwill) is compared with its recoverable amount
and attributable interest. by the Group. The recoverable amount of a CGU is the
higher of its fair value less cost to sell and its value-
2.8 Intangibles
in-use. Value-in-use is the present value of the future
Intangible assets are carried at cost less accumulated cash flows expected to be derived from the CGU. Total
amortisation and impairment losses, if any. The cost impairment loss of a CGU is allocated first to reduce
of an intangible asset comprises of its purchase the carrying amount of goodwill allocated to the CGU

Corporate Overview
price, including any import duties and other taxes and then to the other assets of the CGU prorata on
(other than those subsequently recoverable from the basis of the carrying amount of each asset in the
the taxing authorities), and any directly attributable CGU. An impairment loss on goodwill is recognised in
expenditure on making the asset ready for its intended the statement of profit and loss and is not reversed in
use. Subsequent expenditure is capitalised only if it is the subsequent period.
probable that the future economic benefits associated
(ii) Other non-financial assets
with the expenditure will flow to the Group. Expenditure
on development eligible for capitalisation are carried The carrying amounts of assets are reviewed at
as intangible assets under development where such each balance sheet date if there is any indication of
assets are not yet ready for their intended use. impairment based on internal/external factors. An
impairment loss is recognised wherever the carrying
2.9 Depreciation/amortisation
amount of an asset exceeds its recoverable amount
Based on internal assessment and independent in the statement of profit and loss. An impairment
technical evaluation carried out by external valuers loss is reversed in the statement of profit and loss

Statuory Reports
the management believes that the useful lives as given if there has been a change in the estimates used
below best represent the period over which management to determine the recoverable amount. The carrying
expects to use these assets. Hence, in certain class of amount of the asset is increased to its revised
assets, the useful lives is different from the useful lives recoverable amount, provided that this amount
prescribed under Part C of Schedule II of the Companies does not exceed the carrying amount that would
Act, 2013. Depreciation/amortisation is provided on have been determined (net of any accumulated
straight line method (SLM) over useful life. amortisation or depreciation) has no impairment
loss been recognised for the asset in the prior
Type of asset Estimated Useful Life
years. An asset’s recoverable amount is the higher
Buildings 20 years
of an asset’s or cash generating unit’s (CGU) net
Furniture and fixtures 4 to 16 years
selling price and its value in use.
Office equipment 3 to 10 years
Computers 3 years The recoverable amount is determined for an
Vehicles 3 years individual asset, unless the asset does not

Financial Statements
Customer relationship 3 to 12 years generate cash inflows that are largely independent
Technology 5 years of those from other assets or groups of assets.
Brand 20 years Value in use is the present value of an asset
Database 4 to 5 years calculated by estimating its net future value
Tradename 7 years including the disposal value. In determining net
Platform 5 years
selling price, recent market transactions are taken
Software 1 to 3 years
into account, if available. If no such transactions
The estimated useful lives of PPE and intangible can be identified, an appropriate valuation model
assets and the depreciation and amortisation period is used.
are reviewed at the end of each financial year and the
After impairment, depreciation is provided on
amortisation method is revised to reflect the changed
the revised carrying amount of the asset over its
pattern, if any.
remaining useful life.
Leasehold improvements are amortised over the lease
b) Impairment of financial assets
term or useful life of the asset, whichever is lower, over a
period of 1 to 9 years. In accordance with Ind-AS 109, the Group applies
Expected Credit Loss (ECL) model for measurement and
2.10 Impairment
recognition of impairment loss on the following financial
a) Impairment of non-financial assets assets and credit risk exposure:
(i) Goodwill i) Financial assets that are measured at amortised
cost e.g., loans, deposits, and bank balance.
Goodwill is tested for impairment on an annual basis
or whenever there is an indication that goodwill may

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CRISIL Limited

Consolidated Financial Statements

ii) Trade receivables. To assess whether a contract conveys the right to control
the use of an identified asset, the Group assesses
The Group follows ‘simplified approach’ for
whether:
recognition of impairment loss allowance on trade
receivables which do not contain a significant (i) the contract involves the use of an identified asset
financing component. The application of simplified
(ii) the Group has substantially all of the economic
approach does not require the Group to track
benefits from use of the asset through the period
changes in credit risk. Rather, it recognises
of the lease and
impairment loss allowance based on lifetime ECLs
at each reporting date. (iii) the Group has the right to direct the use of the
asset
For all other financial assets, ECL is measured at
an amount equal to the twelve month ECL unless Where the Group is a lessee
there has been a significant increase in credit risk
The Group determines the lease term as the non-
from the initial recognition in which case those are
cancellable period of a lease, together with periods
measured at lifetime ECL.
covered by an option to extend the lease, where the
2.11 Business combinations Group is reasonably certain to exercise that option.

Business combinations have been accounted for using At the date of commencement of the lease, the Group
the acquisition method under the provisions of Ind AS recognises a right of use asset and a corresponding
103 w.e.f. January 1, 2012. The acquisition date is the lease liability for all lease arrangements in which it is a
date on which control is transferred to the acquirer. lessee, except for leases with a term of twelve months or
The Company measures goodwill as of the applicable less (short-term leases) and leases of low value assets.
acquisition date at the fair value of the consideration For these short-term and leases of low value assets, the
transferred, less the net recognised amount of the Group recognises the lease payments as an operating
identifiable assets acquired and liabilities (including expense on a straight-line basis over the term of the
contingent liabilities) acquired. lease.

When the fair value of the net identifiable assets acquired The cost of the right of use asset measured at inception
and liabilities acquired exceeds the consideration shall comprise of the amount of the initial measurement
transferred, a bargain purchase gain is recognised as of the lease liability adjusted for any lease payments
capital reserve. Business combinations between entities made at or before the commencement date less any
under common control is accounted at carrying value. lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the
Transaction cost that the Group incurs in connection
lessee in dismantling and removing the underlying asset
with business combinations such as finder fees, legal
or restoring the underlying asset or site on which it is
fees and other professional and consulting fees are
located.
expensed as incurred.
The right of use assets is subsequently measured at
Goodwill is measured at cost less accumulated
cost less any accumulated depreciation, accumulated
impairment loss.
impairment losses, if any and adjusted for any
2.12 Leases remeasurement of the lease liability. The right of use
assets is depreciated using the straight-line method
Leases where the lessor effectively retains substantially
from the commencement date over the shorter of lease
all the risks and benefits of ownership of the leased
term or useful life of right of use asset. The estimated
item, are classified as operating leases. Operating
useful lives of right of use assets are determined on the
lease payments are recognised as an expense in the
same basis as those of property, plant and equipment.
statement of profit and loss on a straight-line basis over
the lease term. Lease incentives received are recognised Right of use assets are tested for impairment whenever
as an integral part of the total lease expense, over the there is any indication that their carrying amounts may
term of the lease. not be recoverable. Impairment loss, if any, is recognised
in the statement of profit and loss.
The Group’s lease assets consists of office premises. The
Group assesses whether a contract contains a lease, at The Group measures the lease liability at the present
inception of a contract. A contract is, or contains, a lease value of the lease payments that are not paid at the
if the contract conveys the right to control the use of commencement date of the lease. The lease payments
an identified asset for a period of time in exchange for are discounted using the interest rate implicit in the
consideration. lease, if that rate can be readily determined. If that

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Annual Report 2020

rate cannot be readily determined, the Group uses are based on market conditions and risk existing at each
incremental borrowing rate. reporting date. The method used to determine the fair
value includes discounted cash flow analysis, available
The lease payments shall include fixed payments,
quoted market prices and dealer quotes. All method of
variable lease payments based on an index or rate,
accessing fair value results in general approximation
residual value guarantees, exercise price of a purchase
of value and such value may never actually be realised.
option where the Group is reasonably certain to exercise
For all other financial instruments the carrying amounts
that option and payments of penalties for terminating
approximates fair value due to short term maturity of
the lease, if the lease term reflects the lessee exercising
those instruments.

Corporate Overview
an option to terminate the lease.
2.15 Financial instruments
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on Initial recognition
the lease liability, reducing the carrying amount to
The Group recognises financial assets and financial
reflect the lease payments made and remeasuring the
liabilities when it becomes a party to the contractual
carrying amount to reflect any reassessment or lease
provisions of the instrument. All financial assets
modifications or to reflect revised in-substance fixed
and liabilities are recognised at fair value on initial
lease payments.
recognition, except for trade receivables which are
Lease liability and right of use assets have been initially measured at transaction price. Transaction
presented separately in the Balance Sheet and lease costs that are directly attributable to the acquisition or
payments are classified as cash used in financing issue of financial assets and liabilities, which are not
activities in the statement of cash flows. at fair value through profit or loss, are added to the fair
value on initial recognition. Regular way purchase and
Group as a lessor
sale of financial assets are accounted for at trade date.

Statuory Reports
Leases under which the Group is a lessor are classified
Subsequent measurement
as finance or operating leases. Lease contracts where
all the risks and rewards are substantially transferred to a) Non-derivative financial instruments
the lessee, the lease contracts are classified as finance
(i) Financial assets carried at amortised cost
leases. All other leases are classified as operating
leases. A financial asset is subsequently measured at
amortised cost if it is held with in a business
Transition
model whose objective is to hold the asset in
Effective January 1, 2020, the Group has adopted order to collect contractual cash flows and
Ind AS 116 “Leases” and applied the standard to all the contractual terms of the financial asset
applicable lease contracts existing on January 1, 2020 give rise on specified dates to cash flows that
using the modified retrospective method and has are solely payments of principal and interest
taken the cumulative adjustment to retained earnings, on the principal amount outstanding. For

Financial Statements
on the date of initial application. Consequently, the financial assets maturing within one year
Group recorded the lease liability at the present value from the balance sheet date, the carrying
of the lease payments discounted at the incremental amounts approximate the fair value due to the
borrowing rate and the right of use asset at its carrying short maturity of these instruments.
amount as if the standard had been applied since the
(ii) Financial assets at fair value through other
commencement date of the lease, but discounted
comprehensive income (FVTOCI)
at the Group’s incremental rate at the date of initial
application. Comparatives as at and for the year ended A financial asset is subsequently measured
December 31, 2019 have not been retrospectively at fair value through other comprehensive
adjusted and therefore will continue to be reported income if it is held within a business model
under the accounting policies included as part of our whose objective is achieved by both collecting
financial statements for year ended December 31, 2019. contractual cash flows and selling financial
assets and the contractual terms of the
2.13 Share capital
financial asset give rise on specified dates
Ordinary shares are classified as equity. Incremental to cash flows that are solely payments of
costs directly attributable to the issue of new shares or principal and interest on the principal amount
options are shown in equity as a deduction, net of tax, outstanding. Further, in cases where the
from the proceeds. Group has made an irrevocable election based
on its business model, for its investments
2.14 Fair value of financial instruments
which are classified as equity instruments,
In determining the fair value of the financial instruments the subsequent changes in fair value are
the Group uses variety of methods and assumptions that recognised in other comprehensive income.

135
CRISIL Limited

Consolidated Financial Statements

(iii) Financial assets at fair value through profit (ii) Receivable hedge
or loss (FVTPL)
Changes in fair value of foreign currency
A financial asset which is not classified in any derivative instruments not designated as cash
of the above categories are subsequently fair flow hedges and the ineffective portion of cash
valued through profit or loss. flow hedges are recognised in the statement
of profit and loss and reported within foreign
(iv) Financial liabilities
exchange gains/(losses).
Financial liabilities are subsequently carried
Derecognition of financial instruments
at amortised cost using the effective interest
method, except for contingent consideration The Group derecognises a financial asset when the
recognised in a business combination which is contractual rights to the cash flows from the financial
subsequently measured at fair value through asset expire or it transfers the financial asset and the
profit and loss. For trade and other payables transfer qualifies for derecognition under Ind AS 109. The
maturing within one year from the balance changes in fair value of equity investments designated
sheet date, the carrying amounts approximate at FVTOCI are accumulated within ‘Equity instruments at
the fair value due to the short maturity of OCI’ reserve within equity. The Group transfers amounts
these instruments. from this reserve to retained earnings when these equity
instruments are derecognised. A financial liability (or
b) Derivative financial instruments
a part of a financial liability) is derecognised from the
The Group uses derivative financial instruments Group’s Balance Sheet when the obligation specified in
i.e. foreign exchange forward and options contracts the contract is discharged or cancelled or expires.
to manage its exposure to foreign exchange
2.16 Provision, contingent liabilities and contingent assets:
risks. Such derivative financial instruments are
initially recognised at fair value on the date on A provision is recognised when the Group has a present
which a derivative contract is entered into and are obligation as a result of past event and it is probable
subsequently re-measured at fair value. Derivatives that an outflow of resources will be required to settle the
are carried as financial assets when the fair value obligation, in respect of which reliable estimate can be
is positive and as financial liabilities when the fair made. If the effect of the time value of money is material,
value is negative. provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
The Group uses hedging instruments that are
liability. When discounting is used, the increase in the
governed by the policies of the Group.
provision due to the passage of time is recognised as a
(i) Cash flow hedges finance cost.
Changes in the fair value of the derivative Contingent liabilities are disclosed in Note 36.
hedging instrument designated as a cash flow Contingent liabilities are disclosed for:
hedge are recognised in other comprehensive
(i) possible obligations which will be confirmed only
income and presented within equity in the
by future events not wholly within the control of the
cash flow hedging reserve to the extent that
Group or
the hedge is effective. To the extent that the
hedge is ineffective, changes in fair value are (ii) present obligations arising from past events where
recognised in the statement of profit and loss. it is not probable that an outflow of resources will
If the hedging instrument no longer meets be required to settle the obligation or a reliable
the criteria for hedge accounting, expires or estimate of the amount of the obligation cannot be
is sold, terminated or exercised, then hedge made.
accounting is discontinued prospectively. The
Contingent assets are disclosed where an inflow of
cumulative gain or loss previously recognised
economic benefits is probable.
in the cash flow hedging reserve is transferred
to the statement of profit and loss upon 2.17 Cash and cash equivalents
the occurrence of the related forecasted
Cash and cash equivalents in the balance sheet
transaction.
comprise cash at bank and in hand and short-term

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Annual Report 2020

investments with an original maturity of three months are recognised over execution period. Revenue from
or less. annual maintenance contracts are recognised on a
time proportion basis.
2.18 Revenue recognition
Provision for estimated losses, if any, on uncompleted
Income from operations
contracts are recorded in the year in which such losses
Income from operations comprises income from initial become certain based on the current estimates.
rating and surveillance services, global research and
Accrued revenue are classified as Unbilled receivables
analytical services, coalition business, customised
(only act of invoicing is pending) when there is

Corporate Overview
research, core research program, customer projects
unconditional right to receive cash, and only passage
and experienced management programs, special
of time is required, as per contractual terms and is
assignments and subscriptions to information products
accordingly classified under ‘other financial assets’.
and services, IPO grading services, independent equity
research (IER)services, infrastructure advisory and risk Accrued revenue where the right to consideration is
management services. conditional upon factors other than the passage of time
are contract assets which are classified as nonfinancial
• Revenue from Initial rating fees are deemed to
asset as the contractual right to consideration is
accrue on the date the rating is awarded and a
dependent on completion of contractual milestones.
portion of it is deferred basis an estimate that
will be attributed to future surveillance recorded Unearned and deferred revenue (“contract liability”) is
equally over 11 months and recognise the deferred recognised when there are billings in excess of revenues.
revenue rateably over the estimated surveillance
The billing schedules agreed with customers include
periods.
periodic performance based payments and/or milestone
• Surveillance fee, subscription to information based progress payments. Invoices are payable

Statuory Reports
products and services, coalition business and within contractually agreed credit period. Contracts
revenue from IER are accounted on a time are subject to modification to account for changes in
proportion basis and revenue is straight lined over contract specification and requirements. The Group
the period of performance. reviews modification to contract in conjunction with
the original contract, basis which the transaction price
• Revenue from customised research and IPO
could be allocated to a new performance obligation
grading are recognised in the period in which such
or transaction price of an existing obligation could
assignments are carried out in a time proportion
undergo a change. In the event transaction price is
basis.
revised for existing obligation, a cumulative adjustment
• Global research and analytics revenue consists of is accounted for.
time and material contracts which is recognised
Grant income
on output basis measured by number of hours/
days/weeks worked at the rates specified in the Export benefits from government authorities are

Financial Statements
agreements. received in the form of saleable scrips and are
recognized at fair value in the statement of profit and
• Core research program revenue is recognized at a
loss under ‘other income’, where all attaching conditions
point in time when research report is delivered to
will be complied with and to the extent there is no
the customer.
significant uncertainty as to the ultimate realization
• Revenue from infrastructure advisory services, on transfer of scrips in the year of the sale. The related
risk management services and customer projects costs are recognised under ‘other expense’.
and experience management program services
Interest income
are recognized in accordance with percentage
completion method. Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the
• Percentage of completion for infrastructure
rate applicable.
advisory is determined based on the project cost
incurred to date as a percentage of total estimated Dividend income
project cost required to complete the project.
Dividend income is recognised when the Group’s right
• Revenue from risk management services comprise to receive payment is established by the balance sheet
of revenue from sale of software and annual date.
maintenance contracts. Revenue from sale of
Profit /(loss) on sale of current investment
software licenses are recognized upon delivery of
these licenses which constitute transfer of all risks Profit /(loss) on sale of current investment is accounted
and rewards. Revenue from consultancy services when the sale is executed. On disposal of such
and sale of software which involves customisation investments, the difference between the carrying

137
CRISIL Limited

Consolidated Financial Statements

amount and the disposal proceeds, net of expenses, is and loss. The Group recognises gains and losses on
recognised in the statement of profit and loss. the settlement of a defined benefit plan when the
settlement occurs.
2.19 Retirement and other employee benefits
Short term compensated absences are provided for
Short term employee benefits
based on estimates. Long term compensated absences
Short-term employee benefits are expensed as the are provided for based on actuarial valuation. The
related service is provided. A liability is recognised for the actuarial valuation is done as per projected unit credit
amount expected to be paid if the Group has a present method. The Company presents the leave as a current
legal or constructive obligation to pay this amount as a liability in the balance sheet, to the extent it does not
result of past service provided by the employee and the have an unconditional right to defer its settlement for
obligation can be estimated reliably. twelve months after the reporting date. Where the
Company has the unconditional legal and contractual
Defined contribution plans
right to defer the settlement for a period beyond twelve
Obligations for contributions to defined contribution months, the same is presented as non-current liability.
plans are expensed as the related service is provided.
In respect of foreign subsidiaries retirement benefits are
Prepaid contributions are recognised as an asset to
governed and accrued as per local statutes and there are
the extent that a cash refund or a reduction in future
no defined benefit plan. The amount contributed to the
payments is available.
defined contribution plan is charged to the statement of
Defined benefit plans profit and loss account on accrual basis.
The Group’s net obligation in respect of defined 2.20 Employee stock compensation cost
benefit plans is calculated separately for each plan by
The Group recognises expense relating to share based
estimating the amount of future benefit that employees
payment in net profit using fair value in accordance with
have earned in the current and prior periods, discounting
Ind AS 102-Share Based Payment.
that amount and deducting the fair value of any plan
assets. The grant date fair value of options granted to
employees is recognised as an employee expense, with
The calculation of defined benefit obligations is
a corresponding increase in equity, over the period that
performed annually by a qualified actuary using the
the employees become unconditionally entitled to the
projected unit credit method. When the calculation
options. The expense is recorded for each separately
results in a potential asset for the Group, the recognised
vesting portion of the award as if the award was, in
asset is limited to the present value of economic benefits
substance, multiple awards. The increase in equity
available in the form of any future refunds from the
recognised in connection with share based payment
plan or reductions in future contributions to the plan.
transaction is presented as a separate component
To calculate the present value of economic benefits,
in equity under “Share based payment reserve”. The
consideration is given to any applicable minimum
amount recognised as an expense is adjusted to reflect
funding requirements.
the actual number of stock options that vest.
Remeasurement of the net defined benefit liability,
2.21 Foreign currency
which comprise actuarial gains and losses and the
return on plan assets (excluding interest) and the Functional currency
effect of the asset ceiling (if any, excluding interest), are
The functional currency of the Company and its Indian
recognised immediately in other comprehensive income
subsidiaries is the Indian Rupee (INR), whereas the
(OCI). Net interest expense (income) on the net defined
functional currency of the foreign subsidiaries is
liability (assets) is computed by applying the discount
the currency of their countries of domicile. These
rate, used to measure the net defined liability (asset).
consolidated financial statements are presented in
Net interest expense and other expenses related to
Indian Rupees (rounded off to the nearest lakhs except
defined benefit plans are recognised in the statement of
otherwise indicated).
profit and loss.
The financial statements of subsidiary companies whose
When the benefits of a plan are changed or when a
functional currency is the currency of a hyperinflationary
plan is curtailed, the resulting change in benefit that
economy are adjusted for the effects of changes in
relates to past service or the gain or loss on curtailment
general price index (to reflect the change in purchasing
is recognised immediately in the statement of profit

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Annual Report 2020

power of the local currency) and expressed in terms of ii) intends either to settle on a net basis, or to realise
the current unit of measurement at the closing date the asset and settle the liability simultaneously.
of the reporting period, in accordance with Ind AS 29
The current income tax for overseas subsidiaries has
“Financial Reporting in Hyperinflationary Economies”.
been computed based on the tax laws applicable to
Subsidiaries with the currency of hyperinflationary each subsidiary in the respective jurisdiction in which
economy as their functional currency are restated as they operate.
per Ind AS 29 before consolidation in accordance with
Deferred tax
Ind AS 110 ‘Consolidated Financial Statements’. Once

Corporate Overview
restated, all items of the financial statements of such Deferred tax is recognised in respect of temporary
a subsidiary is converted to INR the closing exchange differences between the carrying amounts of assets
rate. To determine the existence of hyperinflation, the and liabilities for financial reporting purposes and the
Group assesses the qualitative characteristics of the amounts used for taxation purposes (including those
economic environment of the country such as the trend arising from consolidation adjustments).
of inflation rate over the past three years.
Deferred tax assets are recognised for unused tax
Foreign currency transactions losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future
Foreign currency transactions are recorded at exchange
taxable profits will be available against which they
rates prevailing on the date of transaction. Foreign
can be used. Deferred tax assets are reviewed at each
currency denominated monetary assets and liabilities
reporting date and are reduced to the extent that it is
are restated into the functional currency using exchange
no longer probable that the related tax benefit will
prevailing at the balance sheet date. Gains and losses
be realised; such reductions are reversed when the
arising on settlement and restatement of foreign
probability of future taxable profits improves.
currency denominated monetary assets and liabilities

Statuory Reports
are recognised in the statement of profit and loss. Non- Deferred tax assets include Minimum Alternate Tax
monetary assets and liabilities that are measured in (MAT) paid in accordance with the tax laws which is
terms of historical cost in foreign currencies are not likely to give future economic benefits in the form of
translated. availability of set off against future income tax liability.
Accordingly, MAT is recognised as deferred tax asset
Foreign currency translation
in the balance sheet when the asset can be measured
Assets and liabilities of the entities with functional reliably and it is probable that the future economic
currency other than the presentation currency have benefit associated with the asset will be realised.
been translated to the presentation currency using
2.23 Segment reporting policies
exchange rates prevailing on the balance sheet date.
The statement of profit and loss has been translated The Managing Director and Chief Executive Officer of
using monthly average exchange rates prevailing during the Group has been identified as the Chief Operating
the year. Translation adjustment have been reported as Decision Maker (CODM) as defined by Ind AS 108

Financial Statements
foreign currency translation reserve in the statement of Operating Segments. The CODM evaluates the Group’s
changes in equity. performance and allocates resources based on an
analysis of various performance indicators by industry
2.22 Taxes on income
classes. Accordingly, segment information has been
Income tax expense comprises current and deferred tax. presented for industry classes.
It is recognised in the statement of profit and loss except
The Group is structured into three reportable business
to the extent that it relates items recognised directly in
segments – Rating, Research and Advisory The
equity or in OCI.
reportable business segments are in line with the
Current tax segment wise information which is being presented
to the CODM. Geographical information on revenue
Current tax comprises the expected tax payable or
and industry revenue information is collated based on
receivable on the taxable income or loss for the year
individual customers invoices or in relation to which
and any adjustment to the tax payable or receivable in
the revenue is otherwise recognised. The accounting
respect of previous years. It is measured using tax rates
principles used in the preparation of the consolidated
enacted or substantively enacted at the reporting date.
financial statements are consistently applied to record
Current tax assets and liabilities are offset only if, the revenue and expenditure in individual segments, and
Group: are as set out in the significant policies.
i) has a legally enforceable right to set off the Assets and liabilities that are directly attributable
recognised amounts; and or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are

139
CRISIL Limited

Consolidated Financial Statements

disclosed as unallocable. Property, plant and equipment For the purpose of calculating diluted earnings per
that are used interchangeably among segments are not share, the Group has adopted treasury stock method to
allocated to reportable segments. compute the new shares that can possibly be created
by un-exercised stock options. The net profit or loss for
Inter segment transfers:
the period attributable to equity shareholders and the
The Group generally accounts for inter segment services weighted average number of shares outstanding during
and transfers as if the services or transfers were to third the period are adjusted for the effects of all dilutive
parties at arm length price. potential equity shares.
Allocation of common costs: 2.25 Dividend
Common allocable costs are allocated to each segment The final dividend on shares is recorded as a liability
according to the relative contribution of each segment on the date of approval by the shareholders. Interim
to the total common costs. dividend is recognised as a liability on the date of
declaration by the Company’s Board of Directors.
Unallocated items:
2.26 Assets held for sale
Unallocable income and expenses includes general
corporate income and expense items which are not Non-current assets or disposal groups comprising of
identified to any business segment. assets and liabilities are classified as ‘held for sale’
when all of the following criterias are met: (i) decision
2.24 Earnings per share
has been made to sell, (ii) the assets are available for
Basic earnings per share are calculated by dividing the immediate sale in its present condition, (iii) the assets
net profit or loss for the period attributable to equity are being actively marketed and (iv) sale has been
shareholders by the weighted average number of equity agreed or is expected to be concluded within 12 months
shares outstanding during the year. The weighted of the balance sheet date. Subsequently, such non-
average number of equity shares outstanding during current assets and disposal groups classified as held
the period is adjusted for events such as buy back, for sale are measured at the lower of its carrying value
Employee Stock Option Scheme (ESOS), etc. that have and fair value less costs to sell. Non-current assets held
changed the number of equity shares outstanding, for sale are not depreciated or amortised.
without a corresponding change in resources.

140
 3A. Property, plant and equipment
For the year ended December 31, 2020 (Rupees in lakhs)
Carrying value Accumulated depreciation Net Block
Particulars As at Additions Deductions Currency Adjustments As at Up to For the Deductions Currency Adjustments Up to As at
January 1, translation (Refer note December January year translation (Refer note 44) December Decem ber
2020 reserve 44) 31, 2020 1, 2020 reserve 31, 2020 31, 2020
Buildings 10 - - - - 10 10 - - - - 10 -
Annual Report 2020

Furniture and fixtures 1,017 52 123 (153) 1,071 1,864 699 89 98 (129) 987 1,548 316
Office equipments 1,813 56 27 (25) 150 1,967 1,207 152 16 (17) 149 1,475 492
Computers 6,613 2,108 72 (134) 3,696 12,211 4,799 1,556 69 (317) 3,574 9,543 2,668
Vehicles 812 27 219 (25) - 595 528 165 194 (22) - 477 118
Leasehold improvements 3,480 523 43 (204) 444 4,200 2,990 330 28 (1) 401 3,692 508
Total 13,745 2,766 484 (541) 5,361 20,847 10,233 2,292 405 (486) 5,111 16,745 4,102

For the year ended December 31, 2019 (Rupees in lakhs)

Carrying value Accumulated depreciation Net Block
As at Additions Deductions Currency Adjustments As at Up to For the Deductions Currency Adjustments Up to As at
Particulars
January 1, translation December January 1, year translation December December
2019 reserve 31, 2019 2019 reserve 31, 2019 31, 2019
Buildings 10 - - - - 10 10 - - - - 10 -
Furniture and fixtures 1,054 41 33 (45) - 1,017 594 176 27 (44) - 699 318
Office equipments 1,794 171 95 (57) - 1,813 1,046 295 72 (62) - 1,207 606
Computers 5,834 1,508 389 (340) - 6,613 4,217 1,295 375 (338) - 4,799 1,814
Vehicles 947 128 221 (42) - 812 524 214 166 (44) - 528 284
Leasehold improvements 3,488 39 43 (4) - 3,480 2,632 393 30 (5) - 2,990 490
Total 13,127 1,887 781 (488) - 13,745 9,023 2,373 670 (493) - 10,233 3,512

3B. Right of Use Asset

For the year ended December 31, 2020 (Rupees in lakhs)
Carrying value Accumulated depreciation Net Block
Transitional Additions Lease Currency Adjustments As at Up to For the Lease Currency Adjustments Up to As at
Particulars impact of modification translation (Refer Note December January 1, year modification translation December December
Ind AS 116 reserve 44) 31, 2020 2020 reserve 31, 2020 31, 2020
(Refer note
39)
Building 22,264 3,590 (2,750) 223 3,258 26,585 - 6,935 (1,264) 6 - 5,677 20,908
Total 22,264 3,590 (2,750) 223 3,258 26,585 - 6,935 (1,264) 6 - 5,677 20,908

141
Financial Statements Statuory Reports Corporate Overview
CRISIL Limited

Consolidated Financial Statements

4 Goodwill
(Rupees in lakhs)
As at December As at December
Particulars
31, 2020 31, 2019
Carrying value at the beginning of the year 28,861 27,725
On acquisition of Greenwich Associates LLC (Refer Note 44) 7,344 -
Foreign currency exchange gain/(loss) 1,381 1,136
Carrying value at the end of the year 37,586 28,861
Goodwill has been allocated in the following CGU’s:
Irevna 9,502 9,224
Coalition 24,463 16,016
Advisory 3,621 3.621
Total 37,586 28,861

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Cash Generating Units (CGU) or
groups of CGUs, which benefit from the synergies of the acquisition. The chief operating decision maker reviews the goodwill for any
impairment at the CGU’s level.

The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use, both of which are calculated by the
Group using a discounted cash flow analysis. These calculations use pre tax cash flow projections over a period of five years, based on
financial budgets approved by the management. For calculation of the recoverable amount, the Group has used the following rates:
Particulars Growth rate Discount rate
Irevna business 5.00% 14.60%
Coalition business 5.00% 14.60%
Advisory business 5.00% 14.60%
The above discount rate is based on the weighted average cost of capital of the Company. These estimates are likely to differ from future
actual results of operations and cash flows.

An analysis of sensitivity of the computation to a change in key parameters (operating margins and discount rate) based on reasonably
probable assumptions, did not identify any probable scenario in which recoverable amount of the CGU would decrease below its carrying
amount.

As at December 31, 2020, the estimated recoverable amount of the CGU exceeded its carrying amount, hence impairment is not triggered.

142
 5. Intangible assets
For the year ended December 31, 2020 (Rupees in lakhs)
Carrying value Accumulated amortisation Net Block
As at Additions Deductions Currency Adjustments As at Up to For the Deductions Currency Adjustments Up to As at
Particulars
January 1, translation (Refer note 44) December January 1, year translation (Refer note 44) December December
2020 reserve 31, 2020 2020 reserve 31, 2020 31, 2020
Annual Report 2020

Intangible assets
Brand (Refer note 44) - 3,668 - (49) - 3,619 - 154 - 19 - 173 3,446
Technology 1,782 - - 319 - 2,101 1,782 - - 319 - 2,101 -
Database 838 2,994 - 94 - 3,926 838 631 - 140 - 1,609 2,317
Customer relationship 1,866 6,512 - 111 - 8,489 1,573 553 - 228 - 2,354 6,135
(Refer note 44)
Tradename 418 - - 49 - 467 418 - - 49 - 467 -
Platform 985 - - - - 985 381 197 - - - 578 407
Software 4,201 869 - (135) 7,672 12,607 2,583 1,349 - 129 7,195 11,256 1,351
Total 10,090 14,043 - 389 7,672 32,194 7,575 2,884 - 884 7,195 18,538 13,656

For the year ended December 31, 2019 (Rupees in lakhs)

Carrying value Accumulated amortisation Net Block
As at Additions Deductions Currency Adjustments As at Up to For the Deductions Currency Adjustments Up to As at
Particulars
January 1, translation December January 1, year translation December December
2019 reserve 31, 2019 2019 reserve 31, 2019 31, 2019
Technology 1,543 - - 239 - 1,782 1,543 - - 239 - 1,782 -
Database 726 - - 112 - 838 726 - - 112 - 838 -
Customer relationship 1,691 - - 175 - 1,866 1,216 183 - 174 - 1,573 293
Tradename 381 - - 37 - 418 319 63 - 36 - 418 -
Platform 985 - - - - 985 184 197 - - - 381 604
Software 3,539 662 - - - 4,201 1,713 870 - - - 2,583 1,618
Total 8,865 662 - 563 - 10,090 5,701 1,313 - 561 - 7,575 2,515

143
Financial Statements Statuory Reports Corporate Overview
CRISIL Limited

Consolidated Financial Statements

6. Investments
As at December 31, 2020 As at December 31, 2019
A. Non-current investments No. of shares Rupees in No. of shares Rupees in
lakhs lakhs
Unquoted equity investments carried at fair value through OCI (Refer Note
6.2)
Equity Shares of National Commodity and Derivative Exchange Limited of 1,875,000 3,082 1,875,000 3,204
Rupees 10 each, fully paid up
Equity Shares of Caribbean Information and Credit Rating Agency of US $ 1 300,000 155 300,000 120
each, fully paid up
Sub - total (a) 3,237 3,324
Quoted equity investments carried at fair value through OCI (Refer Note 6.2)
Equity Share of ICRA Limited of Rupees 10 each, fully paid up (Refer Note 6.1) 1 - 1 -
Equity Share of CARE Ratings Limited of Rupees 10 each, fully paid up 2,622,431 13,791 2,622,431 16,756
Sub - total (b) 13,791 16,756
Total non-current investments - (a + b) 17,028 20,080

As at December 31, 2020 As at December 31, 2019

B. Current investments No. of units Rupees in No. of units Rupees in
lakhs lakhs
Investments in mutual funds
(Unquoted investments carried at fair value through profit and loss)
(Refer Note 34)
L&T Banking and PSU Debt Fund - Direct Plan - Growth 8,531,402 1,715 - -
ICICI Prudential Savings Fund - Direct Plan - Growth 1,168,989 4,885 - -
Invesco India Treasury Advantage Fund - Direct Plan - Growth 162,221 4,908 - -
DSP Banking and PSU Debt Fund - Dir - Growth 25,341,488 4,855 - -
IDFC Ultra Short Term Fund - Direct Plan - Growth 14,699,599 1,746 - -
IDFC Low Duration Fund - Growth - Direct Plan 17,470,972 5,314 - -
Aditya Birla Sun Life Savings Fund - Growth - Direct Plan 1,223,662 5,177 - -
Kotak Savings Fund - Direct Plan - Growth 5,741,861 1,974 - -
HDFC Charity Fund for Cancer Cure - Debt Plan - Direct - 100% Dividend - - 2,500,000 255
Donation
Invesco India Short Term Fund - Direct Plan Growth - - 157,336 4,313
Axis Treasury Advantage Fund - Direct Growth - - 87,495 2,000
LIC MF Banking and PSU Debt Fund - Direct Plan - Growth - - 17,417,522 4,606
IDFC Bond Fund - Short Term Plan - Growth - (Direct Plan) - - 6,754,142 2,862
L&T Short Term Bond Fund - Direct Plan - Growth - - 14,588,155 2,863
L&T Money Market Fund - Direct Plan - Growth - - 19,892,581 4,001
DSP Short Term Fund - Direct Plan - Growth - - 5,104,208 1,797
DSP Corporate Bond Fund - Direct - Growth - - 4,325,447 501
Sundaram Corporate Bond Fund Direct Growth - - 7,064,600 2,027
Total investments in mutual funds (c) 30,574 25,225
Total investments (a + b + c) 47,602 45,305
The market value of quoted investments is equal to the carrying value
6.1 ‘-’ in amounts’ columns denote amount less than Rupees 50,000
6.2 The total dividend recognised pertaining to FVTOCI instruments for the year ended on December 31, 2020 was Rupees 433 lakhs and for the year ended
December 31, 2019 was Rupess 761 lakhs. Dividend from equity investments designated at FVTOCI relates to investments held at the end of the reporting
period. The Group recognises dividend in statement of profit and loss under the head “other income”. For all the equity instruments that are classified by the
Group as FVTOCI, fair value changes on the instrument, excluding dividends, are recognised in the OCI.

144
Annual Report 2020

7. Loans (Non-current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Security and other deposits 2,455 3,421
Total 2,455 3,421

Corporate Overview
8. Other financial assets (Non-current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Interest accrued on fixed deposits 5 2
-Deposits with more than 12 months maturity 103 85
[Deposit includes fixed deposits with banks Rupees 50 lakhs (Previous year: Rupees 73 lakhs)
marked as lien for guarantees issued by banks on behalf of the Group (Refer Note 36)]
Total 108 87

9. Income tax
(Rupees in lakhs)

Statuory Reports
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Current tax 11,984 13,115
Deferred tax (1,628) 1,649
Total income tax expense recognised in current year 10,356 14,764

The tax year for the company being the year ending March 31, 2021, the tax expense for the year is the aggregate of the provision made
for the three months ended March 31, 2020 and the provisions for the nine months upto December 31, 2020. The tax provision for the nine
months has been arrived at using effective tax rate for the period April 1, 2020 to March 31, 2021.
The reconciliation between income tax provision of the Group and amounts computed by applying the Indian statutory income tax rate
to profit before taxes is summarized below:
(Rupees in lakhs)
Year ended Year ended
Particulars

Financial Statements
December 31, 2020 December 31, 2019
Profit before income tax 45,829 49,159
Enacted income tax rate in India for fiscal year ended March 31, 2021 and March 31, 2020. (%) 25.17% 27.61%
Computed expected tax expense 11,534 13,575
Effect of:
Income exempt from tax (144) (259)
Expenses that are not deductible in determining taxable profit 253 357
Income subject to different tax rates (312) 150
Tax expense of prior years (440) 20
Impact due to change in rate - 1,264
Others (535) (343)
Total income tax expense recognised in the statement of profit and loss 10,356 14,764

145
CRISIL Limited

Consolidated Financial Statements

Deferred tax
The tax effect of significant temporary differences that resulted in deferred income tax assets and liabilities are as follows:
As at December 31, 2020 (Rupees in lakhs)
Opening Recognised Recognised Recognised Exchange Closing
Particulars balance in profit and in OCI in retained difference balance
loss earning
Deferred tax liability on:
Gains from investments 644 - (20) - - 624
Gains from mutual funds 91 (28) - - - 63
Gains/losses on forward contract 13 - 153 - - 166
Business combination 407 (378) - - - 29
Property, plant and equipment and intangibles 407 251 - - (20) 638
Discounting of security deposit 31 (31) - - - -
Gross deferred tax liability 1,593 (186) 133 - (20) 1,520
Deferred tax asset on:
Provision for compensated absences 1,426 370 - - 1 1,797
Provision for bonus and commission 766 (85) - - 32 713
Provision for gratuity 607 19 130 - - 756
Provision for doubtful debt 575 (41) - - 1 535
Initial rating fees and other deferred revenue 530 (149) - - - 381
Lease laibility and right to use - 190 - 412 4 606
Property, plant and equipment and intangibles 1,145 155 - - 2 1,302
On unabsorbed depreciation 67 (67) - - - -
40A(ia) of the Income Tax Act, 1961 and other items 603 (21) - - 20 602
Discounting of security deposit - 120 - - - 120
Brought forward losses - 713 - - 20 733
Interest expense disallowance - 141 - - 4 145
Earnout payments - 231 - - 6 237
Gross deferred tax asset 5,718 1,576 130 412 90 7,926
MAT credit entitlement 134 (134) - - - -
Net deferred tax asset 4,259 1,628 (3) 412 110 6,406

As at December 31, 2019 (Rupees in lakhs)

Opening Recognised Recognised Recognised Exchange Closing
Particulars balance in profit and in OCI in retained difference balance
loss earning
Deferred tax liability on:
Gains from investments 674 - (30) - - 644
Gains from mutual funds 50 41 - - - 91
Gains / losses on forward contract 115 - (102) - - 13
Business combination 407 - - - - 407
Property, plant and equipment and intangibles 370 49 - - (12) 407
Lease rent amortisation 28 3 - - -* 31
Gross deferred tax liability 1,644 93 (132) - (13) 1,593
Deferred tax asset on:
Provision for compensated absences 1,992 (567) - - 1 1,426
Provision for bonus and commission 1,028 (263) - - 1 766
Provision for gratuity 711 (173) 69 - - 607
Provision for doubtful debt 1,214 (640) - - 1 575
Initial rating fees and other deferred revenue 597 (67) - - - 530
Property, plant and equipment and intangibles 1,212 (68) - - 1 1,145
Unabsorbed depreciation - 67 - - - 67
40A(ia) of the Income Tax Act, 1961 and other items 508 81 - - 14 603
Gross deferred tax asset 7,262 (1,632) 69 - 18 5,718
MAT credit entitlement 58 76 - - - 134
Net deferred tax asset 5,676 (1,649) 201 - 30 4,259
* '-' in amounts' columns denote amount less than Rupees 50,000

146
Annual Report 2020

Deferred tax liability on undistributed earnings of Rupees 10,298 lakhs (Previous year: 8,025 lakhs) of certain subsidiaries has not been
recognised, as it is the intention of the Group to reinvest the earnings of these subsidiaries for the foreseeable future.

10. Tax assets (Non-current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Advance taxes paid (net of provision for taxation) [Provision of tax Rupees 126,182 lakhs 7,969 7,396
(Previous year: Rupees 120,740 lakhs)]

Corporate Overview
Total 7,969 7,396

11. Other non-current assets

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Prepaid rent - 573
Capital advance 276 55
Prepaid expenses 378 438
Total 654 1,066

12. Trade receivable (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019

Statuory Reports
Trade receivables considered good- Secured - -
Trade receivables considered good- Unsecured (Refer Note 38) 30,736 19,937
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 2,109 2,375
Less: Allowance for impairment loss (2,109) (2,375)
Total 30,736 19,937
The Group uses a provision matrix to determine impairment loss allowance on the portfolio trade receivables. The provision matrix
is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking
estimates. At period end, the historical observed default rates are updated and changes in the forward looking estimates are analyzed.
Specific allowance for loss is also been provided by the management based on expected recovery on individual customers.

Reconciliation of loss allowance: (Rupees in lakhs)

Financial Statements
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening balance 2,375 3,987
Movement during the year (266) (1,612)
Closing balance 2,109 2,375

13. Cash and cash equivalents (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Cash on hand 5 5
Balances with banks :
On current accounts 26,817 11,631
Deposits with maturity of less than three months 666 22,533
[Deposit includes fixed deposits with banks Rupees Nil (Previous year: Rupees 12 lakhs) marked as
lien for guarantees issued by banks on behalf of the Group. (Refer Note 36)]
Total 27,488 34,169

147
CRISIL Limited

Consolidated Financial Statements

14. Other bank balances (Current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
On unpaid dividend accounts 76 75
Deposit with original maturity for more than 3 months but less than 12 months 304 314
[Deposit includes fixed deposits with banks Rupees 114 lakhs (Previous year: Rupees 239
lakhs) marked as lien for guarantees issued by banks on behalf of the Group. (Refer Note
36)]
Total 380 389

15. Loans (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Loans to employees 271 370
Security and other deposits
- Considered good 1,850 352
- Considered doubtful 107 68
Less: Allowance for impairment loss (107) (68)
Total 2,121 722
Sub-classification of loans:
Loan receivables considered good- Secured - -
Loan receivables considered good- Unsecured 2,121 722
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired 107 68
Less: Allowance for impairment loss (107) (68)
Total 2,121 722

16. Other financial assets (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Unbilled receivables (Refer Note 16.1) 9,179 7,682
Interest accrued on deposits 12 19
Fair value of foreign currency forward contract (Refer Note 34.2) 877 53
Others 108 147
Total 10,176 7,901

16.1 The balance lying in unbilled receivables as at December 31, 2019 is fully billed during the current year.

17. Other current assets

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Prepaid rent - 269
Prepaid expense 1,553 1,669
Balances with government authorities 1,676 2,336
Advances to suppliers and employees 1,121 1,165
Accrued revenue 2,293 2,396
Total 6,643 7,835

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Annual Report 2020

18. Assets held for sale

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Building (Refer Note 18.1) 318 318
Total 318 318

18.1 T
 he Group has classified a building premise as asset held for sale at its carrying value Rupees 318 lakhs. The Group has actively marketed

Corporate Overview
the premise. The premise has been classified as unallocable as the Group believes that it is currently not practicable to allocate the
premise to any segment.

19. Share capital

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Authorised capital:
100,000,000 Equity shares of Rupee 1 each (Previous year: 100,000,000 equity shares of 1,000 1,000
Rupee 1 each)
Issued, subscribed and paid up:
72,593,290 equity shares of Rupee 1 each fully paid up (Previous year: 72,304,326 equity 726 723
shares of Rupee 1 each)
Total 726 723

Statuory Reports
(a) Reconciliation of equity shares outstanding at the beginning and at the end of the year

Equity shares

Particulars As at December 31, 2020

Rupees in lakhs Nos.
At the beginning of the year (face value of Rupee 1 per share) 723 72,304,326
Add : Issued during the year-Under employee stock option scheme (ESOS) (Refer Note 45) 3 288,964
Outstanding at the end of the year 726 72,593,290

As at December 31, 2019

Particulars
Rupees in lakhs Nos.
At the beginning of the year (face value of Rupee 1 per share) 721 72,115,782
Add : Issued during the year-Under employee stock option scheme (ESOS) (Refer Note 45) 2 188,544

Financial Statements
Outstanding at the end of the year 723 72,304,326

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rupee 1 per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Shares held by holding/ultimate holding and/ or their subsidiaries

Out of equity shares issued by the Company, shares held by its holding company, ultimate holding Company and their subsidiaries/
associates are as below:

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Group Holding of the S&P Global Inc.
31,209,480 equity shares of Rupee 1 each fully paid held by S&P India, LLC, fellow subsidiary 312 312
(Previous year: 31,209,480 equity shares of Rupee 1 each)
11,523,106 equity shares of Rupee 1 each fully paid held by S&P Global Asian Holdings Pte. 115 115
Limited, fellow subsidiary (Previous year: 11,523,106 equity shares of Rupee 1 each)
6,000,000 equity shares of Rupee 1 are held by Standard & Poor's International LLC, fellow 60 60
subsidiary (Previous year: 6,000,000 equity shares of Rupee 1 each)
Total 487 487

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Consolidated Financial Statements

(d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period
of five years immediately preceding the reporting date

As at As at
Particulars
December 31, 2020 December 31, 2019
Nos. Nos.
Aggregate number of equity shares bought back by the Company (In last five years) Nil 511,932
Aggregate number of bonus shares and shares issued for consideration other than cash by Nil Nil
the Company

(e) Details of shareholders holding more than 5% shares in the Company.

As at December 31, 2020

Name of the shareholder % holding in the Nos.
class
Equity shares of Rupee 1 each fully paid
1. Group Holding of the S&P Global Inc.
a) S&P India, LLC 42.99% 31,209,480
b) S&P Global Asian Holdings Pte. Limited 15.87% 11,523,106
c) Standard & Poor's International LLC 8.27% 6,000,000
2. Life Insurance Corporation of India 5.95% 4,321,911
3. Jhunjhunwala Rakesh and Rekha 5.48% 3,975,000

As at December 31, 2019

Name of the shareholder % holding in the Nos.
class
Equity shares of Rupee 1 each fully paid
1. Group Holding of the S&P Global Inc.
a) S&P India, LLC 43.16% 31,209,480
b) S&P Global Asian Holdings Pte. Limited 15.94% 11,523,106
c) Standard & Poor's International LLC 8.30% 6,000,000
2. Jhunjhunwala Rakesh and Rekha 6.64% 4,797,793
3. Life Insurance Corporation of India 5.48% 3,965,000

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

(f) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option scheme (ESOS) of the Company (Refer Note 45).

(g) Capital management

The Group is predominantly equity financed and continues to maintain adequate amount of liquidity to meet strategic and growth
objectives. The Group manages its capital to ensure that it will be able to continue as going concerns while maximising the return to
its stakeholders. The Group has ensured a balance between earning adequate returns on treasury asset and need to cover financial
and business risk. The Group actively monitors its portfolio and has a policy in place for investing surplus funds. Appropriate limits and
controls are in place to ensure that investments are made as per policy. The Group has an overdraft and other loan facilities sanctioned
from banks to support any temporary funding requirements, as and when required.

19.1 Explanation of reserves:

a) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve
is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the
general reserve will not be reclassified subsequently to the retained earnings.

b) Securities premium reserve

The amount received in excess of face value of the equity shares is recognised in securities premium reserve

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 Annual Report 2020

c) Share based payment reserve

The share based payment reserve account is used to record the value of equity-settled share based payment transactions with employees.
The amounts recorded in this account are transferred to share premium upon exercise of stock options by employees.

d) Other comprehensive income (OCI)

Other comprehensive income includes fair value changes in equity instruments, hedge reserve and currency fluctuation reserve through
OCI.

e) Hedge reserve

Corporate Overview
Forward contracts are stated at fair value at each reporting date. Changes in the fair value of the forward contracts that are designated
and effective as hedges of future cash flows are recognised directly in OCI and accumulated under the hedging cash flow hedge reserve,
net of applicable deferred income taxes.

f) Currency fluctuation reserve

Exchange difference relating to the translation of the results and net assets of the Group’s foreign operations from their respective
functional currencies to the Group’s functional currency is recognised directly in other comprehensive income and accumulated in the
currency fluctuation reserve.

g) Foreign currency monetary items translation

Exchange differences arising on translation of the long-term monetary assets is accumulated in separate reserve within equity. The
cumulative amount is reclassified to the statement of profit and loss over the life of the monetary asset on a straightline basis.

h) Retained earnings

Statuory Reports
Retained earnings represent the cumulative profits of the Group and the effects of measurements of defined benefit obligation.

i) Capital redemption reserve

The Group has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount in capital
redemption reserve is equal to nominal amount of the equity shares bought back.

j) Special economic zone (SEZ) reinvestment reserve

The SEZ reinvestment reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Section 10 AA(1)(ii) of
the Income Tax Act, 1961. The reserve should be utilised by the Group for acquiring new plant and machinery for the purpose of business
in terms of Section 10 AA(2) of the Income Tax Act, 1961.

20. Borrowings (Non-current)

(Rupees in lakhs)

Financial Statements
As at As at
Particulars
December 31, 2020 December 31, 2019
Secured long term loan from Non-banking finance companies (NBFC)*
9.63% Kotak Mahindra Prime Limited - 9
Less: Current maturities of long term borrowing - (5)
Total - 4

*Nature of security for long term borrowing: Vehicle loans are secured by hypothecation of vehicles purchased against the loan
(Rupees in lakhs)
As at As at
Terms of repayment of long term borrowings
December 31, 2020 December 31, 2019
Name of the NBFC: Kotak Mahindra Prime Limited
No. of vehicles for which loan has been availed 1 1
Equated monthly installment (EMI) (Rupees in lakhs) 0.45 0.45
No. of EMIs outstanding as on December 31, 2020 - 21

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Consolidated Financial Statements

21. Other financial liabilities (Non-current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Employee related payables 924 734
Lease laibility 16,580 -
Sundry deposits - 48
Earnout payments 957 -
Total 18,461 782

22. Provisions (Non-current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Provision for gratuity (Refer Note 40) 2,139 1,514
Total 2,139 1,514

23. Short term borrowings (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Bank overdraft (repayable on demand) - 258
Total - 258

24. Trade payables (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Total outstanding dues of micro enterprises and small enterprises (as per intimations 10 3
received from suppliers)
Total outstanding dues of creditors other than micro enterprises and small enterprises 10,526 7,543
Total 10,536 7,546

24.1 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 is provided as under

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
- Principal amount remaining unpaid, but not due 10 3
- Interest due thereon as at year end - -
- I nterest paid by the Group in terms of Section 16 of Micro, Small and Medium Enterprises - -
Development Act, 2006 along with the amount of the payment made to the supplier beyond
the appointed day during the year
- Interest due and payable for the period of delay in making payment (which have been paid - -
but beyond the appointed day during the year) but without adding the interest specified
under Micro, Small and Medium Enterprises Development Act, 2006
- Interest accrued and remaining unpaid as at year end - -
- Further interest remaining due and payable even in the succeeding years, until such date - -
when the interest dues as above are actually paid to the small enterprise


The above information has been determined to the extent such parties could be identified on the basis of the information available with
the Group regarding the status its suppliers.

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Annual Report 2020

25. Other financial liabilities (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Employee related payables 18,345 15,662
Current maturities of long term borrowings - 5
Lease laibility 5,833 -
Sundry deposit 48 75

Corporate Overview
Unpaid dividend (Investor education and protection fund will be credited as and 76 75
when due)
Others 239 218
Total 24,541 16,035

26. Provisions (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Provision for compensated absences (Refer Note 40) 7,622 5,822
Provision for gratuity (Refer Note 40) 766 791
Total 8,388 6,613

27. Tax liabilities (Current)

Statuory Reports
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Current
Provision for tax (net of advance tax) [Advance tax Rupees 13,915 lakhs (Previous year: 1,620 1,530
Rupees 6,625 lakhs)]
Total 1,620 1,530

28. Other current liabilities

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019

Financial Statements
Statutory liabilities 6,696 4,559
Advance received from customer (Refer Note 28.1) 574 382
Unearned revenue (Refer Note 28.1) 16,529 12,458
Total 23,799 17,399

28.1 The balance lying in ‘Unearned revenue’ and ‘Advance received from customer’ as at December 31, 2019 is fully recognised as revenue
during the current year.

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CRISIL Limited

Consolidated Financial Statements

29. Income from operations
(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Ratings services 56,504 54,481
Research services 128,271 104,440
Advisory services 13,408 14,251
Total 198,183 173,172

29.1 The Group disaggregates revenue from contracts with customers by nature of services. (Refer note 37)

29.2 The Group has applied practical expedient and has not disclosed information about remaining performance obligations in contracts
where the original contract duration is one year or less or where the entity has right to consideration that corresponds directly with the
value of entity’s performance completed to date.

30. Other income

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Interest on bank deposits 173 109
Interest on income tax refund 3 369
Interest income on financial assets carried at amortized cost 257 230
Inflation adjustment results (Refer note 41) 845 869
Profit on sale of property, plant & equipment 9 27
Dividend on investments 441 777
Foreign exchange gain (net) 902 -
Profit on sale of current investments 703 981
Profit on fair valuation of current investments 268 387
Grant income (Refer Note 43) 2,774 2,103
Excess provison written back 395 349
Miscellaneous income 1,545 1,083
Total 8,315 7,284

31. Employee benefits expenses

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Salaries, wages and bonus 96,511 78,750
Share based payment to employees 247 814
Contribution to provident and other funds (Refer Note 40) 6,262 4,452
Contribution to gratuity fund (Refer Note 40) 848 771
Staff training and welfare expenses 2,976 2,969
Total 106,844 87,756

32. Finance cost

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Interest on lease laibility (Refer Note 39) 1,410 -
Interest on term loan - 1
Interest expense on bank overdraft 29 22
Total 1,439 23

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Annual Report 2020

33. Other expenses

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Repairs and maintenance - Buildings 1,890 2,104
Repairs and maintenance - others 784 1,037
Electricity 633 1,076
Communication expenses 1,457 1,051

Corporate Overview
Insurance 197 69
Rent (Refer Note 39) 1,254 7,155
Rates and taxes 1,257 567
Printing and stationery 283 233
Conveyance and travelling 1,583 5,168
Books and periodicals 1,221 1,084
Remuneration to non-whole time directors (Refer Note 38) 161 157
Business promotion and advertisement 73 197
Foreign exchange loss - 121
Professional fees 10,838 8,322
Associate service fee 13,163 7,264
Software purchase and maintenance expenses 1,917 1,007
Provision for doubtful debts/bad debts 94 -
Provision for doubtful deposits 45 -
Corporate social responsibility (CSR) expenses (Refer Note 48) 780 768

Statuory Reports
Auditors' remuneration 319 139
Recruitment expenses 508 757
Sales commission 508 785
Miscellaneous expenses 1,310 771
Total 40,275 39,832

34 Financial instruments
The carrying value and fair value of financial instruments by categories as at December 31, 2020 are as follows:
(Rupees in lakhs)
Amortised Financial assets/ Financial assets/liabilities at Derivative Total Total
cost liabilities at FVTPL FVTOCI instruments carrying fair
in hedging value value
Particulars Designated Mandatory Equity Mandatory
relationship
upon initial instruments

Financial Statements
recognition designated upon
initial recognition
Assets
Investments
Quoted equity - - - 13,791 - - 13,791 13,791
investments
Unquoted equity - - - 3,237 - - 3,237 3,237
investments
Mutual funds - - 30,574 - - - 30,574 30,574
Cash and cash 27,488 - - - - - 27,488 27,488
equivalents
Other bank balances 380 - - - - - 380 380
Trade receivables 30,736 - - - - - 30,736 30,736
Loans 4,576 - - - - - 4,576 4,576
Other financial 9,407 - - - - 877 10,284 10,284
assets
Total 72,587 - 30,574 17,028 - 877 121,066 121,066
Liabilities
Trade payables 10,536 - - - - - 10,536 10,536
Other financial 43,002 - - - - - 43,002 43,002
liabilities
Total 53,538 - - - - - 53,538 53,538

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CRISIL Limited

Consolidated Financial Statements

The carrying value and fair value of financial instruments by categories as at December 31, 2019 are as follows:
(Rupees in lakhs)
Amortised Financial assets/ Financial assets/liabilities at Derivative Total Total
cost liabilities at FVTPL FVTOCI instruments carrying fair
Designated Mandatory Equity Mandatory in hedging value value
Particulars relationship
upon initial instruments
recognition designated upon
initial recognition
Assets
Investments
Quoted equity - - - 16,756 - - 16,756 16,756
investments
Unquoted equity - - - 3,324 - - 3,324 3,324
investments
Mutual funds - - 25,225 - - - 25,225 25,225
Cash and cash 34,169 - - - - - 34,169 34,169
equivalents
Other bank balances 389 - - - - - 389 389
Trade receivables 19,937 - - - - - 19,937 19,937
Loans 4,143 - - - - - 4,143 4,143
Other financial 7,935 - - - - 53 7,988 7,988
assets
Total 66,573 - 25,225 20,080 - 53 111,931 111,931
Liabilities
Borrowings 262 - - - - - 262 262
Trade payables 7,546 - - - - - 7,546 7,546
Other financial 16,817 - - - - - 16,817 16,817
liabilities
Total 24,625 - - - - - 24,625 24,625

34.1 Fair value hierarchy

For financial reporting purpose, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to
the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are
described as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).

Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value as at December
31, 2020 and December 31, 2019.

(Rupees in lakhs)
As at December 31, 2020 As at December 31, 2019
Particulars
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets measured at fair value:
A. Investments at FVTPL
1. Mutual Funds 30,574 - - 25,225 - -
B. Investments at FVTOCI
1. Quoted equity shares 13,791 - - 16,756 - -
2. Unquoted equity shares - - 3,237 - - 3,324
C. Forward contracts receivable - 877 - - 53 -

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Annual Report 2020

34.2 Derivative financial instruments and hedging activity

The Group’s risk management policy is to hedge substantial amount of forecast transactions for each of the major currencies presently
US$, GBP £ and Euro €. The hedge limits are governed by the risk management policy. The Group uses forward foreign exchange contracts
to mitigate exchange rate exposure arising from forecast sales in foreign currencies. All forward exchange contracts have been designated

Corporate Overview
as hedging instruments in cash flow hedges in accordance with Ind AS 109. Details of currency hedge and forward contract value are as
under:

As at December 31, 2020

Currency Number Nominal Carrying Maturity date Weighted Changes in Change in the
of value amount of average fair value hedging item used
contracts hedging strike of hedging as the basis for
Type of Hedge (Foreign instrument price/rate instrument recognising hedge
currency (Rupees in (Rupees in effectiveness
in '000) lakhs) lakhs) (Rupees in lakhs)
Cash flow hedge
i) Foreign USD 39 41,162 31,855 Jan - Dec-21 77.39 1,005 (1,005)
exchange
forward
contracts
GBP 11 6,080 6,005 Jan - Dec-21 98.76 (219) 219

Statuory Reports
EUR 12 4,212 3,763 Jan - Dec-21 89.34 (128) 128
Receivables hedge
i) Foreign USD 1 6,250 4,896 6-Jul-21 78.34 219 (219)
exchange
forward
contracts

As at December 31, 2019

Currency Number Nominal Carrying Maturity date Weighted Changes in Change in the
of value amount of average fair value hedging item used
contracts hedging strike of hedging as the basis for
Type of Hedge (Foreign instrument price/rate instrument recognising hedge
currency (Rupees in (Rupees in effectiveness
in '000) lakhs) lakhs) (Rupees in lakhs)

Financial Statements
Cash flow hedge
i) Foreign USD 48 52,744 38,667 Jan - Dec-20 73 159 (159)
exchange GBP 11 5,969 5,650 Jan - Dec-20 95 (163) 163
forward 12 84
EUR 3,459 2,918 Jan - Dec-20 57 (57)
contracts

Movement in cash flow hedging reserve (Rupees in lakhs)

Foreign exchange
Particulars
forward contract
As at January 1, 2019 229
Add: Changes in fair value of effective portion of outstanding forcasted cash flow hedge 843
Less: Amounts reclassified to statement of profit or loss (1,133)
Less: Tax relating to above (net) 101
As at January 1, 2020 40
Add: Changes in fair value of effective portion of outstanding forecasted cash flow hedge 179
Add: Amounts reclassified to statement of profit or loss 426
Less: Tax relating to above (net) (153)
As at December 31, 2020 492

157
CRISIL Limited

Consolidated Financial Statements

The Group uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. Hedge is broadly classified as revenue
hedge and receivable hedge.

Revenue hedge: For forecasted revenue transaction, the Group will adopt cash flow hedge and record mark to market through OCI.
Effective hedge is routed through OCI in the balance sheet and the ineffective portion is immediately routed through the statement of
profit and loss.

Receivable hedge: The ineffective portion of cash flow hedges are recognized in the statement of profit and loss and reported within
foreign exchange gains/(losses).

Details of unhedged foreign exposure

As at December 31, 2020 As at December 31, 2020

Currency (Foreign Currency in '000) (Rupees in lakhs)
Assets Liabilities Assets Liabilities
Monetary
USD 21,210 879 15,574 646
GBP 19 - 19 -
EUR 3,188 - 2,868 322
Others 1,285 3 340 123

As at December 31, 2019 As at December 31, 2019

Currency (Foreign Currency in '000) (Rupees in lakhs)
Assets Liabilities Assets Liabilities
Monetary
USD 7,391 249 6,296 183
EUR 492 2 393 1
Others 5,048 662 639 165

35 Financial risk management

The Group is exposed to various risks in relation to financial instruments. The Group’s financial assets and liabilities by category are
summarised in Note 34. The main types of risks are market risk (foreign currency exchange rate risk and price risk), business and credit
risks and liquidity risk. The Group has in place a robust risk management policy with overall governance and oversight from the Audit
Committee and Board of Directors. Risk Assessment is conducted periodically and the Group has a mechanism to identify, assess, mitigate
and monitor various risks to key business objectives.

The policies for managing specific risk are summarized below:-

35.1 Market risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market price.
Such changes may result from changes in foreign currency exchange rates, interest rates, price and other market changes, the Group
exposure to market risk is mainly due to foreign exchange rates and price risk.

Foreign currency exchange rate risk

Our exposure to market risk includes changes in foreign exchange rates. Exposures to currency exchange rates arise from the Group’s
overseas sales and purchases, which are primarily denominated in US dollars (USD), EURO, and Pounds Sterling (GBP). As of December
31, 2020 and December 31, 2019, we have entered into foreign exchange forward contracts to hedge the effect of adverse fluctuations in
foreign currency exchange rates. The details in respect of the outstanding foreign exchange forward contracts are given under Note 34.2

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Annual Report 2020

Following is the currency profile of non-derivative financial assets and financial liabilities:

As at December 31, 2020 As at December 31, 2020

Currency (Foreign Currency in '000) (Rupees in lakhs)
Financial Assets Financial Liabilities Financial Assets Financial Liabilities

USD 21,210 879 15,574 646

GBP 19 - 19 -
EURO 3,188 - 2,868 322

Corporate Overview
Others 1,285 3 340 123

As at December 31, 2019 As at December 31, 2019

Currency (Foreign Currency in '000) (Rupees in lakhs)
Financial Assets Financial Liabilities Financial Assets Financial Liabilities

USD 7,391 249 6,296 183

EURO 492 2 393 1
Others 5,048 662 639 165

For the year ended December 31, 2020, every 5% increase/decrease of the respective foreign currencies compared to functional currency
of the Group would impact operating margins by Rupees 886 lakhs (+/-1.73%). For the year ended December 31, 2019, operating margins
would increase/decrease by Rupees 349 lakhs (+/-0.77%). Exposure to foreign currency exchange rate vary during the year depending
upon the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Group’s exposure to
currency risk.

Statuory Reports
Price risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market. The Group has adopted disciplined practices including position sizing, diversification, valuation, loss
prevention, due diligence, and exit strategies in order to mitigate losses.

The Group is exposed price risk arising mainly from investments in mutual funds recognised at FVTPL. The details of such investment are given
under Note 6. If the prices had been higher/lower by 5% from the market prices existing as at reporting dates, profit would increase/decrease by
Rupees 1,529 lakhs and Rupees 1,261 lakhs for the year ended December 31, 2020 and December 31, 2019 respectively.

The Group is exposed price risk arising mainly from investments in quoted equity instruments recognised at FVTOCI. The details of such
investment are given under Note 6. If the equity prices had been higher/lower by 5% from the market prices existing as at the reporting
date, OCI for the year ended December 31, 2020 would increase/decrease by Rupees 690 lakhs and Rupees 838 lakhs for the year ended

Financial Statements
December 31, 2019.

35.2 Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. For the Group, liquidity risk arises from obligations on account of financial liabilities
- trade payables and other financial liabilities.

Liquidity risk management

The Group continues to maintain adequate amount of liquidity/treasury to meet strategic and growth objectives. The Group has ensured
a balance between earning adequate returns on liquidity/treasury assets and the need to cover financial and business risks. Group’s
treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related
to such risks are overseen by senior management. Management monitors the Group’s net liquidity position through rolling forecasts on the
basis of expected cash flows.

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CRISIL Limited

Consolidated Financial Statements

The treasury position of the Group is given below:

Financial assets maturing within one year:

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Trade receivables 30,736 19,937
Cash and cash equivalents 27,488 34,169
Other bank balances 380 389
Loans 2,121 722
Investments in mutual funds 30,574 25,225
Other financial assets 10,176 7,901
Total 101,475 88,343

Financial liabilities maturing within one year and after one year:

(Rupees in lakhs)
As at December 31, 2020 As at December 31, 2019
Particulars
within one year more than one year within one year more than one year
Short term borrowings - - 258 -
Trade payables 10,536 - 7,546 -
Others 24,541 18,461 16,035 782
Total 35,077 18,461 23,839 782

35.3 Business and credit risks

To mitigate the risk arising from high dependence on any one business for revenues, the Group has adopted a strategy of diversifying in new
products/services and into different business segments. To address the risk of dependence on a few large clients and a few sectors in the
business segments, the Group has also actively sought to diversify its client base and industry segments.

Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. The Group is
exposed to this risk for receivables from customers.

To manage credit risk, the Group periodically assesses the financial reliability of customers and other counterparties, taking into account
the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual risk limits
are set accordingly. The Group uses a provision margin to compute the expected credit loss allowance for trade receivables. Further, the
Group doesn’t have significant credit risk exposure to any single counter party or a group of counter parties and have adequate provision
for credit risk/bad debts. Trade receivables are monitored on periodic basis for any non-recoverability of the dues. Bank balances are held
with only high rated banks.

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
<= 6 months 30,555 20,255
> 6 months but <= 1 year 1,310 869
> 1 year 980 1,188
Provision for doubtful receivables (2,109) (2,375)

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Annual Report 2020

36 Details of contingent liabilities and capital commitments are as under

(Rupees in lakhs)

As at As at
Particulars
December 31, 2020 December 31, 2019
[Link] liabilities
1. Bank guarantee in the normal course of business 1,507 1,237
2. Disputed income tax, sales tax, service tax and GST demand:

Corporate Overview
(i) Pending before appellate authorities in respect of which the Group is in 8,888 8,502
appeal
(ii) Decided in the Group's favour by appellate authorities and department is in 1,215 1,263
further appeal
3. Provident Fund

Based on the judgement by the Honorable Supreme Court dated 28 February 2019,
past provident fund liability, is not determinable at present, in view of uncertainty
on the applicability of the judgement to the Group with respect to timing and the
components of its compensation structure. In absence of further clarification, the
Group has been legally advised to await further developments in this matter to
reasonably assess the implications on its financial statements, if any.

The Group periodically receives notices and inquiries from income tax authorities
related to the Group's operations in the jurisdictions of operations in. The Group
has evaluated these notices and inquiries and has concluded that any consequent

Statuory Reports
income tax claims or demands by income tax authorities will not succeed on
ultimate resolution other than what has been provided or disclosed herein.
11,610 11,002
B. Capital commitment
Estimated amount of contracts (net of advances) remaining to be executed on capital 189 145
account and not provided for
Management believes that the ultimate outcome of above matters will not have a
material adverse impact on its financial position, results of operations and cash flows.
In respect of above matters, future cash outflows in respect of contingent liabilities are
determinable only on receipt of judgements pending at various authorities.
Total 11,799 11,147

37 Segment reporting

Financial Statements
Business segments:

The Group has three major business segments: Rating, Research and Advisory. A description of the types of products and services provided
by each reportable segment is as follows:

Ratings – Ratings services includes credit ratings for corporates, banks, bank loans, small and medium enterprises (SME), credit analysis
services, grading services and global analytical services.

Research – Research segment includes global research and analytical services, industry reports, customized research assignments,
subscription to data services, independent equity research (IER), IPO gradings and training.

Advisory – CRISIL provides advisory services and a comprehensive range of risk management tools, analytics and solutions to financial
institutions, banks and corporates in India

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Consolidated Financial Statements

Segment reporting for the year ended December 31, 2020 (Rupees in lakhs)
Business segments
Particulars
Ratings Research Advisory Total
Operating revenue (Refer Note 29) 56,504 128,271 13,408 198,183
Segment results 22,672 20,901 1,007 44,580
Add / (less) unallocables:
1. Unallocable income
Interest income 433
Profit on sale of current investments 703
Profit on sale of fixed asset 9
Grant income 2,774
Others* 4,396
2. Unallocable expenditure (1,890)
3. Depreciation/amortisation (unallocable) (5,176)
Profit before exceptional item 45,829
Exceptional item -
Profit before tax 45,829
Tax expense (10,356)
Profit after tax 35,473
Segment assets 8,401 103,961 14,925 127,287
Unallocable assets** 93,378
Segment liabilities 16,764 45,430 5,569 67,763
Unallocable liabilities** 21,721

Revenue and total assets by geographic segments (Rupees in lakhs)

Geography Revenue Assets #
India 55,962 125,247
Europe 45,509 38,688
North America 81,760 35,585
Rest of the world 14,952 6,770
Total 198,183 206,290

Segment reporting for the year ended December 31, 2019 (Rupees in lakhs)
Business segments
Particulars
Ratings Research Advisory Total
Operating revenue (Refer Note 29) 54,481 104,440 14,251 173,172
Segment results 21,954 23,368 1,273 46,595
Add / ( less ) unallocables :
1. Unallocable income
Interest income 708
Profit on sale of current investments 981
Profit on sale of fixed asset 27
Grant income 2,103
Others* 3,465
2. Unallocable expenditure (1,034)
3. Depreciation/amortisation (unallocable) (3,686)
Profit before exceptional item 49,159
Exceptional item -
Profit before tax 49,159
Tax expense (14,764)
Profit after tax 34,395
Segment assets 4,735 73,985 12,637 91,357
Unallocable assets* * 77,516
Segment liabilities 14,262 23,891 3,858 42,011
Unallocable liabilities** 9,670

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Revenue and total assets by geographic segments (Rupees in lakhs)

Geography Revenue Assets #
India 57,488 94,892
Europe 44,729 44,173
North America 54,457 11,688
Rest of the world 16,498 6,465
Total 173,172 157,218

Notes to segmental results :

Corporate Overview
* Other income which have been allocated to business segments have not been considered in determining unallocable income.

**Assets and liabilities used interchangeably between business segments have been classified as unallocable. The Group believes that it
is currently not practical to allocate these assets and liabilities since a meaningful segregation of the available data is not feasible.

#Total asset for the purpose of geographical segment does not include deferred tax asset and tax asset.

The top two customers of the Group each contributed to more than 10% of the consolidated revenue from operations of the
Group.
The following table gives details in respect of revenues generated from top two customers:

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Total revenue from top two customers who contributed to more than 10% of the revenue 22,086 34,803
from operations

Statuory Reports
38 List of related parties
Parties Relationship
Related parties where control exists
S&P Global Inc. The Ultimate Holding Company
CRISIL Foundation Controlled trust
Other related parties (to the extent where transactions have taken place)
S&P India, LLC Fellow subsidiary
Standard & Poor's International LLC Fellow subsidiary
Standard & Poor's South Asia Services Private Limited Fellow subsidiary
S&P Global Asian Holdings Pte. Limited Fellow subsidiary
S&P Global Canada Corp. Fellow subsidiary

Financial Statements
S&P Capital IQ (India) Private Limited Fellow subsidiary
S&P Global UK Limited Fellow subsidiary
S&P Global Ratings Europe Limited Fellow subsidiary
Standard & Poor’s Financial Services, LLC Fellow subsidiary
Standard & Poor’s Singapore Pte. Ltd. Fellow subsidiary
Standard & Poor's Hong Kong Limited Fellow subsidiary
Standard & Poor’s (Australia) Pty. Ltd. Fellow subsidiary
Standard & Poor's Global Ratings Japan Inc. Fellow subsidiary
S&P Global Market Intelligence LLC Fellow subsidiary
S&P Global Market Intelligence Inc. Fellow subsidiary
S&P Ratings (China) Co. Ltd Fellow subsidiary
Asia Index Private Limited Fellow subsidiary
Fabindia Overseas Private Limited Common director
Key Management Personnel
Girish Paranjpe Independent Director
Shyamala Gopinath Independent Director (with effect from July 10,
2020)
Arundhati Bhattacharya Independent Director (upto April 15, 2020)
Vinita Bali Independent Director
M. Damodaran Independent Director
Martin Fraenkel Director (with effect from April 18, 2019)
Ewout Steenbergen Director
Martina Cheung Director (up to April 18, 2019)
John L Berisford Chairman

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CRISIL Limited

Consolidated Financial Statements

Parties Relationship
Ravinder Singhania Alternate Director (up to July 22, 2019)
Ashu Suyash Managing Director and Chief Executive Officer
Amish Mehta* Chief Operating Officer
Sanjay Chakravarti* Chief Financial Officer
Minal Bhosale* Company Secretary
* Related Party under the Companies Act, 2013

Transactions with related parties (Rupees in lakhs)

Name of the related party Nature of transaction / outstanding As at and for As at and for the
balances the year ended year ended
December 31, 2020 December 31, 2019
S&P Global Canada Corp. Professional services rendered 161 178
Amount receivable 15 40
Reimbursement of expenses received 1 -
S&P Global Ratings Europe Limited Professional services rendered 4,516 4,639
Reimbursement of expenses received 6 4
Amount receivable 831 623
Standard & Poor’s Financial Services, LLC Professional services rendered 13,354 11,766
Amount receivable 23 884
Reimbursement of expenses received 22 -
Standard & Poor’s Singapore Pte. Ltd. Professional services rendered 656 714
Amount receivable 46 55
Standard & Poor's Hong Kong Limited Professional services rendered 1,221 876
Amount receivable 326 147
Standard & Poor’s (Australia) Pty. Ltd. Professional services rendered 608 470
Amount receivable 55 40
S&P Global Market Intelligence LLC Subscription fees paid 405 344
Professional services rendered 568 450
Amount payable - 40
Amount receivable 79 492
Standard & Poor's International LLC Dividend paid 1,920 1,800
Share capital outstanding 60 60
Reimbursement of expenses received -* -
Amount receivable -*
S&P India, LLC Dividend paid 9,987 9,363
Share capital outstanding 312 312
S&P Global Asian Holdings Pte. Limited Dividend paid 3,687 3,457
Share capital outstanding 115 115
S&P Capital IQ (India) Private Limited Reimbursement of expenses rxeceived 22 92
Amount receivable -* 17
Standard & Poor's South Asia Services Private Reimbursement of expenses received 1,232 1,008
Limited
Amount receivable 909 196
S&P Ratings (China) Co. Ltd Professional services rendered - 11
Standard & Poor's Global Ratings Japan Inc. Professional services rendered 289 235
Amount receivable 25 19
Asia Index Private Limited Reimbursement of expenses paid 4 2
S&P Global Inc. Reimbursement of expenses paid 47 -*
Professional services rendered 80 41
Rent paid 372 237
Amount payable 326 -
S&P Global Market Intelligence Inc. Reimbursement of expenses received 56 52
Amount receivable 4 4
S&P Global UK Limited Rent paid 236 223
Professional services rendered 737 443
Amount payable - 23

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Annual Report 2020

Transactions with related parties (Rupees in lakhs)

Name of the related party Nature of transaction / outstanding As at and for As at and for the
balances the year ended year ended
December 31, 2020 December 31, 2019
Amount receivable 220 236
CRISIL Foundation Donation 856 1,070
Reimbursement of expenses received 14 52
Amount receivable 4 -

Corporate Overview
Fabindia Overseas Private Limited Professional services rendered - 2
Girish Paranjpe Sitting fees and commission 44 40
Shyamala Gopinath Sitting fees and commission 19 -
Arundhati Bhattacharya Sitting fees and commission 11 35
Vinita Bali Sitting fees and commission 43 41
M. Damodaran Sitting fees and commission 44 41
Ashu Suyash** Remuneration 633 559
Options granted (nos.) - 21,056
Amish Mehta** Remuneration 399 364
Options granted (nos.) - 11,633
Sanjay Chakravarti** Remuneration 172 155
Options granted (nos.) - 5,488
Minal Bhosale** Remuneration 96 91
Options granted (nos.) - 1,039
-* in amounts column denote amount less than Rupees 50,000
**Note: As the future liability for retirement and other employee benefits is provided on an actuarial basis for the Group as a whole, the amount pertaining

Statuory Reports
to key managerial persons is not included above.

39 Leases
The Company has adopted Ind AS 116 effective January 1, 2020, using the modified retrospective method and has applied the standard
to its leases with the cumulative impact recognized on the date of initial application i.e. January 1, 2020. Accordingly, previous period
information has not been restated. The lease expenses which were recognized as rent expense in previous periods is now recognized as
depreciation expense for the right-of-use asset and finance cost for interest accrued on lease liability. The Company has elected not to
recognize right-to-use assets and lease liabilities for short term leases (lease term of 12 months or less) and leases of low-value and has
recognized the lease payments for such leases as an expense over the lease term. The transition has resulted in recognition of Right-
of-Use (ROU) assets of Rupees 22,264 lakhs and Lease Liability of Rupees 22,167 lakhs in books. The cumulative effect of applying the
standard resulted in Rupees 1,165 lakhs being debited to retained earnings (net of taxes).

39.1 The following is the movement in lease liabilities :

Financial Statements
(Rupees in lakhs)
Year ended
Particulars
December 31, 2020
Balance as at January 1, 2020 -
Additions (transitional impact on adoption of Ind AS 116) 22,167
Adjustments: On account of acquisition of Greenwich 3,690
Less: Modification of lease term (1,809)
Add: Additions 3,559
Add : Fx Adjustment 239
Add: Interest recognised during the year 1,410
Less: Waiver of lease rent (52)
Payment made (6,791)
Balance as at December 31, 2020 22,413

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CRISIL Limited

Consolidated Financial Statements

39.2 The table below provides details regarding the contractual maturities of lease liabilities as at December 31, 2020 on an
undiscounted basis:
(Rupees in lakhs)
Year ended
Particulars
December 31, 2020
Future minimum lease payments:
Not later than one year 6,961
Later than one year and not later than five years 17,065
Later than five years 5,681
Total 29,707

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilites as and when they fall due.

Rental expense recorded for short term leases as per Ind AS 16 was Rupees 1,254 lakhs for the year.

Effective January 1, 2020, the Company has adopted Ind AS 116, Leases and has recognised interest on lease liability of Rupees 1,410
lakhs under finance costs.

The aggregate depreciation on ROU assets has been included under depreciation expense in the Statement of Profit and Loss.

40 Gratuity and other post employment benefits plans

In accordance with the Payment of Gratuity Act, 1972 the Group provides for gratuity, a defined benefit retirement plan covering eligible
employees (completed continuous services of five years or more) of the Group. The Gratuity Plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of employment at fifteen days salary of an amount based on the respective
employee’s salary and tenure of employment with the Group.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded
status and amounts recognised in the balance sheet for the respective plans.

Net employee benefit expense recognised in Statement of Profit and Loss and OCI: (Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Current service cost 726 659
Interest cost on defined benefit obligation 124 112
Re-measurement - actuarial (gain)/loss (recognised in OCI) 551 239
Expected return on plan assets (recognised in OCI) (38) 13
Adjustment (2) -
Net gratuity benefit expense 1,361 1,023

Balance Sheet:
Details of provision for gratuity benefit (Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Present value of funded obligations 5,957 4,862
Fair value of plan assets (3,052) (2,557)
Net liability 2,905 2,305

Changes in the present value of the defined benefit obligation are as follows: (Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening defined benefit obligation 4,862 4,330
Current service cost 726 659
Interest cost 311 300
Actuarial (gain)/loss (11) (6)
Actuarial (gain)/loss (financial assumptions) 562 245
Benefits directly paid by company - (5)
Benefits paid (493) (661)
Closing defined benefit obligation 5,957 4,862

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Annual Report 2020

Changes in the fair value of plan assets are as follows: (Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening fair value of plan assets 2,557 2,261
Expected return on plan assets - (13)
Interest income on plan assets 187 188
Contribution by employer 763 782
Return on plan assets greater / (lesser) than discount rate recognised in OCI 38 -

Corporate Overview
Benefits paid (493) (661)
Closing fair value of plan assets 3,052 2,557

The defined benefit obligation shall mature after December 31, 2020 as follows:
Particulars Rupees in lakhs
December 31, 2021 532
December 31, 2022 635
December 31, 2023 735
December 31, 2024 786
December 31, 2025 887
December 31, 2026 to December 31, 2031 4,755

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
As at As at
Particulars
December 31, 2020 December 31, 2019

Statuory Reports
Investment with insurer 100% 100%
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:
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Discount rate 5.70% 6.80%
Estimated rate of return on plan assets 7.00% 7.50%
Expected employee turnover
Service years Rates Rates
Service < 5 20.00% 20.00%
Service => 5 10.00% 10.00%
Increment 10% for first 4 years 10% for first 4 years

Financial Statements
starting 2020 and starting 2019 and
7% thereafter 7% thereafter
Expected employer's contribution next year (Rupees in lakhs) 751 791

Broad category of plan assets as per percentage of total plan assets of the gratuity:-
As at As at
Particulars
December 31, 2020 December 31, 2019
Government securities 81% 76%
Fixed deposits, debentures and bonds 13% 18%
Others 6% 6%
Total 100% 100%

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CRISIL Limited

Consolidated Financial Statements

The significant actuarial assumptions for the determination of defined benefit obligations are discount rate and salary escalation rate.
The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of
the reporting period, holding all other assumptions constant.

Discount rate Rupees in lakhs

Effect on DBO due to 0.5% increase in discount rate (224)
Effect on DBO due to 0.5% decrease in discount rate 240

Salary escalation rate Rupees in lakhs

Effect on DBO due to 0.5% increase in salary escalation rate 194
Effect on DBO due to 0.5% decrease in salary escalation rate (189)

Other benefits
The Group has recognised the following amounts in the statement of profit and loss: (Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
i. Contribution to provident fund 2,272 1,820
ii. Contribution to other funds 3,990 2,632

A provision of Rupees 7,622 lakhs has been made for compensated absences as at December 31, 2020 (Previous year: Rupees 5,822
lakhs).

41 Application of Ind AS 29 in financial reporting of Argentina subsidiary

Ind AS 29 “Financial reporting in Hyperinflation Economies”, which requires that the financial statemnets of entities whose functional
currency is that of Hyperinflation economy to be adjusted for the effects of changes in a suitable general price index and to be expressed
in terms of the current unit of measurement at the closing rate of the reporting period, is still applicable for the company’s Argentine
subsidiary. The inflation adjustment was calcuated by means of conversion factor derived from the Argentine price indexes published
by the Argentina’s Official Statistics Bureau (‘INDEC’). The average index for the year ended December 31, 2020, was 1.34 (Previous year
average index: 1.54).

The main procedures for the above-mentioned adjustment are as follows:

i. Monetary assets and liabilities which are carried at amounts current at the balance sheet date are not restated because they are
already expressed in terms of the monetary unit current at the balance sheet date.

ii. Non-monetary assets and liabilities which are not carried at amounts current at the balance sheet date, and components of
shareholders’ equity are adjusted by applying the relevant conversion factors.

iii. All items in the income statement are restated by applying the relevant conversion factors.

iv. The effect of inflation on the Company’s net monetary position is included in the income statement, in finance cost, net, under the
caption “Inflation adjustment results”.

The comparative figure as of December 31, 2019, have been stated as per changes in the generial price index applicable to the financial
reporting of the company’s subsidiary with the Argentine peso as functional currency and, as result have been stated in terms of such
currency as of the end of comparative reporitng period.

42 Securities and Exchange Board of India (SEBI) notifications dated May 30, 2018 and September 19, 2018, under the SEBI (Credit Rating
Agencies) Regulations, 1999, have mandated segregation of Ratings and Non-Ratings businesses of Credit Rating Agencies. Pursuant to,
and in order to comply with these notifications, CRISIL’s Board of Directors approved transfer of the Ratings business to CRISIL Ratings
Limited, (incorporated on June 3, 2019), a wholly owned subsidiary of the Company. This transfer has been undertaken through a ‘Scheme
of arrangement in terms of Section 230 to 232 of the Companies Act, 2013’ (‘Scheme’) which has been approved by Stock Exchanges. The
Scheme has been sanctioned by the National Company Law Tribunal (NCLT) with appointed date as January 1, 2020 and the certified
copy of the Order dated June 8, 2020 has been received on July 7, 2020 which has been filed with Registrar of Companies on July 20, 2020.
Further SEBI and Reserve Bank of India (RBI) has given necessary approval on December 4, 2020 and December 31, 2020, respectively, to
CRISIL Ratings Limited to act as a Credit Rating Agency. On receipt of approval, the Scheme became effective on December 31, 2020 with
the appointed date of January 1, 2020.

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Annual Report 2020

43 During the year, the Group received export benefits amounting to Rupees 2,752 lakhs (Previous year: Rupees 2,093 lakhs) in the form
of duty free saleable scrips under the Service Export Incentive Scheme (SEIS) from the Government authorities and the same has been
accounted for as ‘Other income’ in the consolidated financial statements (Refer Note 30).

44 Business Combinations
On February 26, 2020, CRISIL completed the acquisition of 100% stake in Greenwich Associates LLC (USA) and its subsidiaries (‘GA’), a
company based in Stampford, USA, and its subsidiaries, a leading provider of proprietary benchmarking data, analytics and qualitative,
actionable insights that helps financial services firms worldwide measure and improve business performance. The acquisition will
complement CRISIL’ s existing portfolio of products and expand offerings to new segments across financial services including commercial

Corporate Overview
banks and asset and wealth managers.
The business combination was conducted by entering into a share purchase agreement for a total consideration of USD 40 million, which
includes upfront and deferred consideration.
Purchase price allocated to the fair values of assets acquired and liabilities assumed includes value of brand, database and customer
relationships as intangible assets, which have been valued at INR 13,174 lakhs, to be amortised over the period of 20, 4 and 12 years
respectively. The excess of purchase consideration over net assets and the identified intangible asset has been recognised as Goodwill.
All assets, liabilities and reserves in the books of Greenwich as on February 26, 2020 are recognised in the Company’s books at their
respective carrying values. The purchase price has been allocated based on the Company’s estimates and independent appraisal of fair
values as follows:

Particulars Rupees in lakhs

Total net assets acquired * 4,599
Intangibles identified on business combination:
Brand 3,668

Statuory Reports
Database 2,994
Customer relaionship 6,512
Goodwill 7,344
Purchase consideration 25,117
Deferred consideration 4,820
Total purchase consideration 29,937
* Carrying value is equal to fair value

45 Employee stock option scheme (“ESOS”)


The Group has formulated an ESOS based on which employees are granted options to acquire the equity shares of the parent company
that vests in a graded manner. The options are granted at the closing market price prevailing on the stock exchange, immediately prior to
the date of grant. Details of the ESOS granted are as under :

Financial Statements
Date of grant No. of options Exercise price Graded vesting period : Weighted average
Particulars granted (Rupees) price (Rupees)**
1st Year 2nd Year 3rd Year
ESOS 2014 (1) 17-Apr-14 * 2,860,300 1,217.20 953,433 953,433 953,434 469.48
ESOS 2014 (2) 01-Jun-15 * 71,507 2,101.10 23,835 23,835 23,837 708.36
ESOS 2012 (1) 16-Apr-12 903,150 1,060.00 180,630 361,260 361,260 320.59
ESOS 2012 (2) 16-Apr-12 5,125 1,060.00 5,125 - - 230.97
ESOS 2012 (3) 14-Feb-14 123,000 1,119.85 24,600 49,200 49,200 334.20
ESOS 2011 (1) 14-Feb-11 1,161,000 579.88 232,200 464,400 464,400 185.21
ESOS 2011 (2) 14-Feb-11 23,750 579.88 23,750 - - 149.41
ESOS 2011 (3) 3-Oct-14 33,000 1,985.95 6,600 13,200 13,200 583.69
ESOS 2011 (4) 25-Feb-15 22,000 2,025.20 4,400 8,800 8,800 515.78
ESOS 2011 (5) 16-Dec-16 194,200 2,180.85 38,840 77,680 77,680 621.74
ESOS 2012 (4) 16-Dec-16 47,800 2,180.85 9,560 19,120 19,120 621.74
ESOS 2014 (3) 16-Dec-16* 82,100 2,180.85 27,093 27,093 27,914 734.46
ESOS 2014 (4) 09-Mar-17* 13,400 1,997.35 4,422 4,422 4,556 680.28
ESOS 2014 (5) 17-Jul-17* 25,000 1,956.55 8,250 8,250 8,500 626.51
ESOS 2014 (6) 8-Jan-18* 8,000 1,919.25 2,666 2,666 2,667 623.48
ESOS 2014 (7) 24-Jan-18* 238,970 1,969.45 79,656 79,656 79,658 651.23
ESOS 2014 (8) 4-Apr-18 164,457 1,841.35 54,818 54,818 54,820 410.12
ESOS 2014 (9) 16-Apr-19 226,155 1,568.85 75,384 75,384 75,387 332.35
* At the end of 3rd, 4th & 5th year in equal tranches
**Weighted average price of options as per Black -Scholes Option Pricing model at the grant date.

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CRISIL Limited

Consolidated Financial Statements

The Company had three schemes under which options have been granted in the past. Under ESOS 2011, ESOS 2012, ESOS 2014 (8) and
ESOS 2014 (9) option vest over three years at each of the anniversaries. ESOS 2011 and ESOS 2012 are exercisable within three years from
the date of vesting and are settled in equity on exercise. ESOS 2014 (8) and ESOS 2014 (9) are exercisable within two years from the date
of vesting and are settled in equity on exercise.

Under ESOS 2014 (1-7) options vest over five years starting from third anniversary of the grant. Options are exercisable within two years
from the date of vesting and are settled in equity on exercise.

The summary for each scheme as at December 31, 2020

ESOS - 2011 ESOS - 2012 ESOS - 2014
Particulars Number of Wtd. avg. Number of Wtd. avg. Number of Wtd. avg.
options exercise price options exercise price options exercise price
(Rupees) (Rupees) (Rupees)
Outstanding at the beginning of the year 207,400 2,168.45 74,030 1,804.92 1,112,938 1,563.03
Granted during the year - N.A. - N.A. - N.A.
Forfeited during the year - N.A. 15,030 1,684.59 110,596 1,812.45
Exercised during the year - N.A. 19,200 1,119.85 269,764 1,226.04
Expired during the year 52,040 2,131.41 7,960 2,181.00 91,113 1,446.12
Outstanding at the end of the year 155,360 2,180.85 31,840 2,180.85 641,465 1,678.36
Exercisable at the end of the year 155,360 2,180.85 31,840 2,180.85 392,868 1,622.82

The summary for each scheme as at December 31, 2019

ESOS - 2011 ESOS - 2012 ESOS - 2014
Particulars Number of Wtd. avg. Number of Wtd. avg. Number of Wtd. avg.
options exercise price options exercise price options exercise price
(Rupees) (Rupees) (Rupees)
Outstanding at the beginning of the year 220,600 2,157.53 74,030 1,804.92 1,356,879 1,547.24
Granted during the year - N.A. - N.A. 226,155 1,568.85
Forfeited during the year - N.A. - N.A. 246,193 1,795.83
Exercised during the year - N.A. - N.A. 188,544 1,217.20
Expired during the year 13,200 1,985.95 - N.A. 35,359 1,217.00
Outstanding at the end of the year 207,400 2,168.45 74,030 1,804.92 1,112,938 1,563.03
Exercisable at the end of the year 207,400 2,168.45 74,030 1,804.92 607,682 1,367.84

Date Wtd. avg. exercise price

Particulars
(Rupees)
Weighted average share price at the date of exercise. February 11, 2020 1,793.60
April 21, 2020 1,366.43
July 21, 2020 1,571.67
October 20, 2020 1,762.51

Range of exercise Wtd. avg. remaining

Particulars
prices Rupees contractual life
Range of exercise prices and weighted average remaining contractual life. 1119.85 to 1217.25 106 days
1568.85 to 1,997.35 1110 days
2,101.10 to 2,180.85 744 days

Cash inflow on exercise of options at the weighted average share price at the date of exercise.
Year ended December 31, 2020 Year ended December 31, 2019
Particulars
Numbers Rupees in lakhs Numbers Rupees in lakhs
Exercised during the year 288,964 3,522 188,544 2,295
Total 288,964 3,522 188,544 2,295
There are no cash settled plans implemented by the Company and hence there is no further liability booked in the books.

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Annual Report 2020

The estimates of future cash inflow that may be received upon exercise of options.
Year ended December 31, 2020 Year ended December 31, 2019
Particulars
Numbers Rupees in lakhs Numbers Rupees in lakhs
Not later than two years 814,380 14,569 1,248,464 20,645
Later than two years & not later than five years 14,285 280 145,904 2,584
Total 828,665 14,849 1,394,368 23,229

46 Earning per share

Corporate Overview
The following reflects the profit and share data used in the basic and diluted earning per share (EPS) computations:

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Net profit for calculation of basic/diluted EPS 35,473 34,395

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Weighted average number of equity shares in calculating basic EPS 72,494,072 72,243,688
Effect of dilution:
Add: weighted average stock options granted under ESOS 53,214 95,840
Weighted average number of equity shares in calculating diluted EPS 72,547,286 72,339,528

Earnings per share : Nominal value of Rupee 1 Year ended Year ended

Statuory Reports
December 31, 2020 December 31, 2019
Basic (Rupees) 48.93 47.61
Diluted (Rupees) (On account of ESOS, Refer note 45) 48.90 47.55

The following potential equity shares are anti-dilutive and therefore excluded from the weighted average number of equity shares for the
purpose of diluted EPS
Year ended Year ended
Particulars December 31, 2020 December 31, 2019
Nos. Nos.
Options to purchase equity shares had anti-dilutive effect 110,150 263,247

47 Dividend
Details of Dividend paid on equity shares are as under: (Rupees in lakhs)

Financial Statements
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Final dividend for the year 2019 (Previous year: 2018) Rupees 13 per equity share of Rupee 9,422 7,938
1 each (Previous year: Rupees 11 per share)
Dividend distribution tax on final dividend - 1,632
Interim dividend for the year 2020 (Previous year: 2019) Rupees 19 per equity share of 13,781 13,735
Rupee 1 each (Previous year: Rupees 19 per share)
Dividend distribution tax on interim dividend - 1,857
Total 23,203 25,162

The Board of Directors at its meeting held on February 11, 2021 have recommended a payment of final dividend of Rupees 14 per equity

share of face value of Rupee 1 each for the financial year ended December 31, 2020. The above is subject to approval at the ensuing Annual
General Meeting of the Company and hence is not recognised as a liability.

48 Corporate Social Responsibility (CSR) expenses for the year ended 2020 includes Rupees 780 lakhs (Previous year: Rupees 768 lakhs)
includes spend on various CSR schemes as prescribed under Section 135 of the Companies Act, 2013. The CSR amount based on limits
prescribed under the Companies Act, 2013 for the year was Rupees 730 lakhs (Previous year: Rupees 737 lakhs). Key CSR activities were
“education and women empowerment – financial capability building” and “conservation of environment”.

171
CRISIL Limited

Consolidated Financial Statements

49 Statement pursuant to details to be furnished for subsidiaries as prescribed by Companies Act,
2013
Net Assets, i.e., total Share in profit or loss Share in other Share in total
assets minus total comprehensive income comprehensive income
liabilities
As % of Rupees in As % of Rupees in As % of Rupees in As % of Rupees in
Name of the entity
consolidated lakhs consolidated lakhs consolidated lakhs consolidated lakhs
net assets profit or loss other total
comprehensive comprehensive
income income
1 2 3 4 5 6 7 8 9
Parent: CRISIL Limited 53% 69,532 47% 16,672 327% (2,891) 40% 13,781
Subsidiaries
Indian
1. CRISIL Risk and Infrastructure 4% 5,825 1% 381 -1% 11 1% 392
Solutions Limited *
2. Pragmatix Services Private 1% 1,734 -* 52 1% (14) -* 38
Limited*
3. CRISIL Ratings Limited* 12% 16,237 39% 13,698 8% (69) 39% 13,629
Foreign
1. CRISIL Irevna Argentina S.A. 3% 4,455 4% 1,251 - - 4% 1,251
2. CRISIL Irevna Poland [Link].o.* -* 403 -* 96 - - -* 96
3. CRISIL Irevna UK Limited 39% 50,970 24% 8,391 - - 24% 8,391
4. CRISIL Irevna US LLC* 7% 9,394 -4% (1,323) - - -4% (1,323)
5. C RISIL Irevna Information 1% 839 1% 197 - - 1% 197
Technology (Hangzhou) Co. Ltd.*
6. Coalition Development Limited 4% 4,910 20% 7,118 - - 21% 7,118
7. Coalition Development Singapore -* 574 1% 312 - - 1% 312
Pte Limited*
8. Greenwich Associates LLC 2% 2,272 -7% (2,328) - - -7% (2,328)
9. CRISIL Irevna Australia Pty Ltd -* -* * -* - - - -* -
Total elimination/adjustment -26% (35,964) -26% (9,044) -235% 2,078 -20% (6,966)
TOTAL 100% 131,181 100% 35,473 100% (885) 100% 34,588
*"-" denotes less than 1%
** ‘in amounts’ column denote amount less than Rupees 50,000

50 Personnel expenses to the extent of Rupees Nil (P.Y. Rupees 33 lakhs) is considered for capitalisation as intangible assets.

51 The Group has considered internal and external information and has performed sensitivity analyses based on current estimates, in
assessing the recoverability of receivables, unbilled revenues, goodwill, intangible assets, other financial assets (including cash liquidity),
and the profitability of the Group. Whilst the situation continues to be extremely dynamic, at present the Group does not see any material
impact on the above. However, the actual impact of the pandemic on the Group’s financial performance may differ from what is estimated,
and the Group continues to monitor changes to future economic conditions.

52 Previous year’s figures have been regrouped where necessary to conform to current year’s classification.

This is the summary of significant accounting policies

and other explanatory information referred to in our
report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

172
 Consolidated Financial Statements
Form AOC-I
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures Part “A”: Subsidiaries
Annual Report 2020

(Information in respect of each subsidiary to be presented with amounts in Rupees in lakhs )

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12
CRISIL CRISIL CRISIL CRISIL CRISIL CRISIL Irevna Coalition Coalition Pragmatix CRISIL Greenwich CRISIL
Risk and Irevna Irevna Irevna UK Irevna US Information Development Development Services Ratings Irevna
Particulars Infrastructure Argentina Poland Limited LLC Technology Limited Singapore Pte Private Limited Associates Australia
Solutions S.A. [Link].o. (Hangzhou) Co. Limited Limited LLC Pty Ltd
Limited Ltd.
The date since when subsidiary was 4-Aug-00 21-May-07 14-Nov-08 19-Oct-04 19-Oct-04 22-Jul-10 3-Jul-12 3-Jul-12 24-Jan-18 3-Jun-19 26-Feb-20 28-Feb-20
acquired/ Investment in subsidiary
Reporting period for the subsidiary December 31, December December December December December 31, December 31, December 31, December December December December
concerned, if different from the 2020 31, 2020 31, 2020 31, 2020 31, 2020 2020 2020 2020 31, 2020 31, 2020 31, 2020 31, 2020
holding Company’s reporting period
Reporting currency INR ARS PLN GBP USD CNY GBP SGD INR INR USD AUD
Exchange rate as on the last date 1.00 0.87 19.82 99.15 73.43 11.24 99.15 55.32 1.00 1.00 73.43 55.85
(Rs.)
Share capital 500 172 9 4,441 10,421 247 151 -* 314 2,610 6,666 -*
Reserves & surplus 5,325 4,283 394 46,529 (1,027) 592 4,759 574 1,420 13,627 (4,394) -
Total assets 10929 1,678 696 63,832 35,602 1,161 13,121 1,265 3,795 34,029 11,941 -*
Total liabilities 10929 1,678 696 63,832 35,602 1,161 13,121 1,265 3,795 34,029 11,941 -
Investments - - - 37,083 25,117 - -* - - 1,276 - -
Turnover 9,355 5,039 1,480 30,945 10,649 1,789 28,699 5,632 1,505 34,795 22,713 -
Profit before taxation 549 1,311 123 8,557 (1,673) 213 8,715 352 80 18,391 (3,202) -
Tax expense 168 60 27 166 (350) 16 1,597 40 28 4,693 (874) -
Profit after taxation 381 1,251 96 8,391 (1,323) 197 7,118 312 52 13,698 (2,328) -
Dividend Paid - - - - - - 7,883 - - - - -
% of shareholding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
*'-' in amounts' columns denote amount less than Rs. 50,000

John L Berisford Ashu Suyash

Chairman Managing Director and Chief Executive Officer
[DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021
Place: Mumbai

173
Financial Statements Statuory Reports Corporate Overview
Recognition for
going beyond

Great Place to Work™

For our open, inclusive, performance-driven culture

Legasis Compliance 10/10 award

For Most Ethical Business Group

CFBP Jamnalal Bajaj Award for Fair

Business Practices
F or the highest standard of ethical conduct,
conflict-free work environment, and respect for
client data confidentiality

CSR Excellence
Jury commendation for Women Empowerment

Risk Markets Technology award

For Best Modelling Innovation, Scenario
Expansion Manager

IWEI Bronze Employer 2020

For increasing awareness on LGBTQIA+ community
and workplace equality
Standalone
Financial
Statements
CRISIL Limited

Independent Auditor’s Report

To the Members of CRISIL Limited Basis for Opinion
Report on the Audit of the Standalone Financial We conducted our audit in accordance with the
3. 
Statements Standards on Auditing specified under section 143(10) of
the Act. Our responsibilities under those standards are
Opinion
further described in the Auditor’s Responsibilities for the
1. We have audited the accompanying standalone financial Audit of the Financial Statements section of our report.
statements of CRISIL Limited (‘the Company’), which We are independent of the Company in accordance
comprise the Balance Sheet as at 31 December 2020, with the Code of Ethics issued by the Institute of
the Statement of Profit and Loss (including Other Chartered Accountants of India (‘ICAI’) together with
Comprehensive Income), the Cash Flow Statement and the ethical requirements that are relevant to our audit
the Statement of Changes in Equity for the year then of the financial statements under the provisions of the
ended, and a summary of the significant accounting Act and the rules thereunder, and we have fulfilled our
policies and other explanatory information. other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that
2. In our opinion and to the best of our information and
the audit evidence we have obtained is sufficient and
according to the explanations given to us, the aforesaid
appropriate to provide a basis for our opinion.
standalone financial statements give the information
required by the Companies Act, 2013 (‘Act’) in the manner Key Audit Matters
so required and give a true and fair view in conformity
4. Key audit matters are those matters that, in our
with the accounting principles generally accepted in
professional judgement, were of most significance in
India including Indian Accounting Standards (‘Ind AS’)
our audit of the standalone financial statements of the
specified under section 133 of the Act, of the state of
current period. These matters were addressed in the
affairs of the Company as at 31 December 2020, and its
context of our audit of the financial statements as a
profit (including other comprehensive income), its cash
whole, and in forming our opinion thereon, and we do not
flows and the changes in equity for the year ended on
provide a separate opinion on these matters.
that date.

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
Revenue recognition
The Company’s income from operations comprises of Our audit of the recognition of contract revenue included,
income from global research and analytical services, but was not limited to, the following:
customised research, special assignments and
•  btained an understanding of the revenue and
O
subscriptions to information products and services,
receivable business process, and assessed the
revenue from initial public offering (IPO) grading services
appropriateness of the revenue recognition policies
and independent equity research (IER) services. Refer Note
adopted by the Company:
2.14 to the standalone financial statements, for details of
revenue recognised during the year. •  valuated key controls around the recognition of
E
contract revenue. Tested the design, implementation
The application of the accounting standard is complex
and operating effectiveness of these identified key
and an area of focus in the audit, as it involved application
controls during the year and as at the year-end.
of significant judgements and estimates relating to
identification of distinct performance obligations, • Evaluated the appropriateness of accounting
determination of transaction price of identified policies selected by the Company on the basis of our
performance obligation, the appropriateness of the understanding of the Company, the nature and size
basis used to measure revenue recognised over a period. of its operation and the requirement of the relevant
Additionally, the standard mandates robust disclosures in accounting standards under the Ind AS framework;
respect of revenue and periods over which the remaining
• On a sample of contracts, tested the revenue
performance obligations will be satisfied subsequent to
recognition and our procedures included:
the balance sheet date.

176
Annual Report 2020

Due to the significance of the item to the financial - reviewing the contract terms and conditions;
statements, complexities involved and management
- evaluating the identification of performance
judgement involved for ensuring appropriateness of
obligations of the contract;
accounting treatment, this matter has been identified as a
key audit matter for the current year’s audit. - evaluating the appropriateness of management’s
assessment of manner of satisfaction of
performance obligations and consequent
recognition of revenue; and

Corporate Overview
- evaluating the reasonableness of the estimates
involved in the recognition of revenue.
•  ested revenue recognition for cut-off transactions on
T
sample basis to assess whether the timing of revenue
recognition is appropriate;
•  valuated the appropriateness and adequacy of the
E
disclosures made in the accompanying standalone
financial statements for revenue recorded during the
year.
Accounting for Demerger of Ratings business
The Company has demerged its Rating Business division Our audit included, but was not limited to, the following
to CRISIL Ratings Limited (“CRL”) (‘the Demerger’) pursuant procedures:
to a Scheme of Arrangement (‘the Scheme’). The demerger

Statuory Reports
• Obtained and reviewed the Scheme for understanding
is pursuant to SEBI (Credit Rating Agencies) Regulations,
the nature of the transaction and the proposed
1999 (as amended from time to time), which mandates
accounting treatment
the segregation of ratings and non-ratings businesses of
Credit Rating Agencies. The Scheme was approved by the • Evaluated the design and tested the operating
National Company Law Tribunal (NCLT) with an Appointed effectiveness of the Company’s key internal controls
date of January 1, 2020. Refer Note 46 to the Standalone on the accounting of demerger of business
Financial Statements for details of the Scheme.
•  ssessed the appropriateness of the accounting
A
The demerger transaction of the Rating division involved an treatment of the demerger for compliance with the
in-depth discussion with the management and internally applicable accounting standards and applicable tax
within the team on the disclosure requirements of Ind AS and other statutes
105, Non-current Assets Held for Sale and Discontinued
•  valuated the appropriateness and adequacy of the
E
Operations, for the purpose of the interim quarterly
disclosures made in the accompanying standalone

Financial Statements
financial results, and in assessing the point at which
financial statements in respect of the Demerger
control is transferred. It further involved identification of
assets and liabilities to be transferred to CRL as per the
provisions of the Scheme.
The demerger has significant impact on the standalone
financial statements of the Company including revenue,
profit, tax, etc.
Considering the complexities involved as discussed above
and significance of the rating division to the Company, this
matter has been identified as a key audit matter for the
current year’s audit.
We further draw attention to Note 46, which states that
the demerger transaction has been accounted in the
accompanying financial statements as per the accounting
prescribed in the Scheme by transferring the assets and
liabilities pertaining to such business at their respective
book values. The Scheme has been given effect from the
Appointed Date of 1 January 2020 as approved by the
National Company Law Tribunal vide its order dated 8 June
2020. Our opinion is not modified in respect of this matter.

177
CRISIL Limited

Information other than the Financial Statements and Those Board of Directors are also responsible for
9. 
Auditor’s Report thereon overseeing the Company’s financial reporting process.

6. The Company’s Board of Directors is responsible for the Auditor’s Responsibilities for the Audit of the
other information. The other information comprises the Financial Statements
information included in the Annual Report, but does not
10. O
 ur objectives are to obtain reasonable assurance about
include the financial statements and our auditor’s report
whether the financial statements as a whole are free from
thereon.
material misstatement, whether due to fraud or error,
Our opinion on the standalone financial statements does and to issue an auditor’s report that includes our opinion.
not cover the other information and we will not express Reasonable assurance is a high level of assurance, but is
any form of assurance conclusion thereon. not a guarantee that an audit conducted in accordance
with Standards on Auditing will always detect a material
I n connection with our audit of the standalone financial
misstatement when it exists. Misstatements can arise
statements, our responsibility is to read the other
from fraud or error and are considered material if,
information and, in doing so, consider whether the other
individually or in the aggregate, they could reasonably be
information is materially inconsistent with the standalone
expected to influence the economic decisions of users
financial statements or our knowledge obtained in the
taken on the basis of these financial statements.
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude 11. As part of an audit in accordance with Standards on
that there is a material misstatement of this other Auditing, we exercise professional judgement and
information, we are required to report that fact. We have maintain professional skepticism throughout the audit.
nothing to report in this regard. We also:

Responsibilities of Management and Those Charged • Identify and assess the risks of material
with Governance for the Standalone Financial misstatement of the financial statements, whether
Statements due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
7.  he accompanying standalone financial statements
T
audit evidence that is sufficient and appropriate
have been approved by the Company’s Board of Directors.
to provide a basis for our opinion. The risk of not
The Company’s Board of Directors is responsible for the
detecting a material misstatement resulting from
matters stated in section 134(5) of the Act with respect to
fraud is higher than for one resulting from error,
the preparation of these standalone financial statements
as fraud may involve collusion, forgery, intentional
that give a true and fair view of the financial position,
omissions, misrepresentations, or the override of
financial performance including other comprehensive
internal control;
income, changes in equity and cash flows of the
Company in accordance with the accounting principles • Obtain an understanding of internal control relevant
generally accepted in India, including the Ind AS to the audit in order to design audit procedures that
specified under section 133 of the Act. This responsibility are appropriate in the circumstances. Under section
also includes maintenance of adequate accounting 143(3)(i) of the Act, we are also responsible for
records in accordance with the provisions of the Act expressing our opinion on whether the Company has
for safeguarding of the assets of the Company and for adequate internal financial controls with reference
preventing and detecting frauds and other irregularities; to financial statements in place and the operating
selection and application of appropriate accounting effectiveness of such controls;
policies; making judgements and estimates that are
•  valuate the appropriateness of accounting
E
reasonable and prudent; and design, implementation
policies used and the reasonableness of accounting
and maintenance of adequate internal financial controls,
estimates and related disclosures made by
that were operating effectively for ensuring the accuracy
management;
and completeness of the accounting records, relevant
to the preparation and presentation of the financial •  onclude on the appropriateness of management’s
C
statements that give a true and fair view and are free use of the going concern basis of accounting and,
from material misstatement, whether due to fraud or based on the audit evidence obtained, whether a
error. material uncertainty exists related to events or
conditions that may cast significant doubt on the
8. In preparing the financial statements, management
Company’s ability to continue as a going concern. If
is responsible for assessing the Company’s ability to
we conclude that a material uncertainty exists, we
continue as a going concern, disclosing, as applicable,
are required to draw attention in our auditor’s report
matters related to going concern and using the going
to the related disclosures in the financial statements
concern basis of accounting unless management either
or, if such disclosures are inadequate, to modify our
intends to liquidate the Company or to cease operations,
opinion. Our conclusions are based on the audit
or has no realistic alternative but to do so.
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
178
Annual Report 2020

cause the Company to cease to continue as a going d) in our opinion, the aforesaid standalone financial
concern; statements comply with Ind AS specified under
section 133 of the Act;
•  valuate the overall presentation, structure and
E
content of the financial statements, including the e) on the basis of the written representations received
disclosures, and whether the financial statements from the directors and taken on record by the Board
represent the underlying transactions and events in of Directors, none of the directors is disqualified as
a manner that achieves fair presentation. on 31 December 2020 from being appointed as a
director in terms of section 164(2) of the Act;
12. We communicate with those charged with governance

Corporate Overview
regarding, among other matters, the planned scope f) we have also audited the internal financial controls
and timing of the audit and significant audit findings, with reference to financial statements of the
including any significant deficiencies in internal control Company as on 31 December 2020 in conjunction
that we identify during our audit. with our audit of the standalone financial statements
of the Company for the year ended on that date and
13. We also provide those charged with governance with
our report dated 11 February 2021 as per Annexure II
a statement that we have complied with relevant
expressed an unmodified opinion; and
ethical requirements regarding independence, and to
communicate with them all relationships and other g) with respect to the other matters to be included in
matters that may reasonably be thought to bear on our the Auditor’s Report in accordance with rule 11 of
independence, and where applicable, related safeguards. the Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion and to the best of our
14. F
 rom the matters communicated with those charged
information and according to the explanations given
with governance, we determine those matters that
to us:
were of most significance in the audit of the financial

Statuory Reports
statements of the current period and are therefore the i. the Company, as detailed in Note 34 (A) (2) to the
key audit matters. We describe these matters in our standalone financial statements, has disclosed
auditor’s report unless law or regulation precludes the impact of pending litigations on its financial
public disclosure about the matter or when, in extremely position as at 31 December 2020;
rare circumstances, we determine that a matter
the Company did not have any long-term
ii. 
should not be communicated in our report because the
contracts including derivative contracts for
adverse consequences of doing so would reasonably be
which there were any material foreseeable
expected to outweigh the public interest benefits of such
losses as at 31 December 2020;
communication.
iii. there has been no delay in transferring amounts,
Report on Other Legal and Regulatory Requirements
required to be transferred, to the Investor
15. As required by section 197(16) of the Act, based on our Education and Protection Fund by the Company
audit, we report that the Company has paid remuneration during the year ended 31 December 2020; and

Financial Statements
to its directors during the year in accordance with the
iv. the disclosure requirements relating to holdings
provisions of and limits laid down under section 197 read
as well as dealings in specified bank notes were
with Schedule V to the Act.
applicable for the period from 8 November 2016
16. A
 s required by the Companies (Auditor’s Report) Order, to 30 December 2016, which are not relevant to
2016 (‘the Order’) issued by the Central Government of these standalone financial statements. Hence,
India in terms of section 143(11) of the Act, we give in reporting under this clause is not applicable.
the Annexure I a statement on the matters specified in
paragraphs 3 and 4 of the Order.
17. Further to our comments in Annexure I, as required by
section 143(3) of the Act, based on our audit, we report,
to the extent applicable, that:
For Walker Chandiok & Co LLP
a) we have sought and obtained all the information and Chartered Accountants
explanations which to the best of our knowledge and Firm’s Registration No.: 001076N/N500013
belief were necessary for the purpose of our audit of
the accompanying standalone financial statements;
Khushroo B. Panthaky
b) in our opinion, proper books of account as required
Partner
by law have been kept by the Company so far as it
Membership No.: 042423
appears from our examination of those books;
UDIN: 21042423AAAAAX9467
c) t he standalone financial statements dealt with
by this report are in agreement with the books of Place: Mumbai
account; Date: 11 February 2021

179
CRISIL Limited

Annexure I to the Independent Auditor’s Report of even date to the members of CRISIL
Limited, on the standalone financial statements
for the year ended December 31, 2020

Annexure I (c) 
there is no overdue amount in respect of loans
granted to such companies.
Based on the audit procedures performed for the purpose of
reporting a true and fair view on the financial statements of In our opinion, the Company has complied with the
(iv) 
the Company and taking into consideration the information provisions of Sections 185 and 186 in respect of
and explanations given to us and the books of account and investments and loans. Further, in our opinion, the
other records examined by us in the normal course of audit, Company has not entered into any transaction covered
and to the best of our knowledge and belief, we report that: under Sections 185 and 186 of the Act in respect of
guarantees and security.
(i) (a) The Company has maintained proper records showing
full particulars, including quantitative details and (v) 
In our opinion, the Company has not accepted any
situation of property, plant and equipment. deposits within the meaning of Sections 73 to 76 of the
Act and the Companies (Acceptance of Deposits) Rules,
(b) All property, plant and equipment have not been
2014 (as amended). Accordingly, the provisions of clause
physically verified by the management during the
3(v) of the Order are not applicable.
year, however, there is a regular programme of
verification once in 2 years, which, in our opinion, (vi) T
 he Central Government has not specified maintenance
is reasonable having regard to the size of the of cost records under sub-section (1) of Section 148 of
Company and the nature of its assets. No material the Act, in respect of Company’s services. Accordingly, the
discrepancies were noticed on such verification. provisions of clause 3(vi) of the Order are not applicable.
(c) The title deeds of all the immovable properties (which (vii) (a) The Company is regular in depositing undisputed
are included under the head ‘Property, plant and statutory dues including provident fund, employees’
equipment’) are held in the name of the Company. state insurance, income-tax, sales-tax, service
tax, duty of customs, duty of excise, value added
(ii) The Company does not have any inventory. Accordingly,
tax, goods and service tax, cess and other material
the provisions of clause 3(ii) of the Order are not
statutory dues, as applicable, to the appropriate
applicable.
authorities. Further, no undisputed amounts payable
(iii) The Company has granted unsecured loans to companies in respect thereof were outstanding at the year-end
covered in the register maintained under Section 189 of for a period of more than six months from the date
the Act; and with respect to the same: they become payable.
(a) in our opinion the terms and conditions of grant of (b) There are no dues in respect of goods and service tax,
such loans are not, prima facie, prejudicial to the sales-tax, duty of customs, duty of excise and value
company’s interest. added tax that have not been deposited with the
appropriate authorities on account of any dispute.
(b) the schedule of repayment of principal and payment
The dues outstanding in respect of income-tax and
of interest has been stipulated and the repayment/
service-tax on account of any dispute, are as follows:
receipts of the principal amount and the interest are
regular;

Statement of Disputed Dues:

Name of the statute Nature of Amount Amount paid Period to which Forum where dispute is pending
dues (Rupees under Protest the amount
in lakhs) (Rupees in lakhs) relates
Income Tax Act, 1961 Income tax 50 - AY 2000-01
46 - AY 2002-03
High Court
36 - AY 2003-04
(Bombay)
32 - AY 2004-05
29 - AY 2005-06
17 10 AY 2006-07 CIT (Appeals)
832 - AY 2007-08 High Court (Madras)
75 - AY 2007-08 CIT (Appeals)
338 127 AY 2008-09 Income Tax Appellate Tribunal (ITAT)
* - AY 2008-09 CIT (Appeals)
1,492 810 AY 2009-10 ITAT
63 - AY 2009-10 CIT ( Appeals)

180
Annual Report 2020

Name of the statute Nature of Amount Amount paid Period to which Forum where dispute is pending
dues (Rupees under Protest the amount
in lakhs) (Rupees in lakhs) relates
1,048 903 AY 2010-11
903 751 AY 2011-12
ITAT
1056 286 AY 2012-13
190 - AY 2013-14
50 3 AY 2013-14

Corporate Overview
121 8 AY 2014-15
CIT (Appeals)
195 19 AY 2015-16
3,802 - AY 2016-17
Finance Act, 1994 Service tax 453 11 FY 2013-14 to Commissioner of Central Excise
2015-16 (Appeals)
*represent amount lesser than Rupees 1 lakh

(viii) The Company has no loans or borrowings payable to (xiv) 

During the year, the Company has not made any
a financial institution or a bank or government and no preferential allotment or private placement of shares or
dues payable to debenture-holders during the year. fully or partly convertible debentures.
Accordingly, the provisions of clause 3(viii) of the Order
(xv) In our opinion, the Company has not entered into any
are not applicable.
non-cash transactions with the directors or persons
(ix) The Company did not raise moneys by way of initial public connected with them covered under Section 192 of the
offer or further public offer (including debt instruments) Act.

Statuory Reports
and did not have any term loans outstanding during the
(xvi) 
The Company is not required to be registered under
year. Accordingly, the provisions of clause 3(ix) of the
Section 45-IA of the Reserve Bank of India Act, 1934.
Order are not applicable.
(x) No fraud by the Company or on the company by its
officers or employees has been noticed or reported
during the period covered by our audit.
(xi) 
Managerial remuneration has been paid/provided by
For Walker Chandiok & Co LLP
the company in accordance with the requisite approvals
Chartered Accountants
mandated by the provisions of Section 197 of the Act
Firm’s Registration No.: 001076N/N500013
read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company.
Khushroo B. Panthaky

Financial Statements
Accordingly, provisions of clause 3(xii) of the Order are
not applicable. Partner
Membership No.: 042423
(xiii) In our opinion all transactions with the related parties
are in compliance with Sections 177 and 188 of Act, UDIN: 21042423AAAAAX9467
where applicable, and the requisite details have been Place: Mumbai
disclosed in the financial statements etc., as required by Date: 11 February 2021
the applicable Ind AS.

181
CRISIL Limited

Annexure II to the Independent Auditor’s Report of even date to the members of CRISIL
Limited on the standalone financial statements
for the year ended December 31, 2020

Annexure II their operating effectiveness. Our audit of internal

financial controls with reference to financial statements
Independent Auditor’s Report on the internal financial
includes obtaining an understanding of such internal
controls with reference to the standalone financial
financial controls, assessing the risk that a material
statements under Clause (i) of Sub-section 3 of Section 143
weakness exists, and testing and evaluating the design
of the Companies Act, 2013 (‘the Act’)
and operating effectiveness of internal control based
1. I n conjunction with our audit of the standalone financial on the assessed risk. The procedures selected depend
statements of CRISIL Limited (‘the Company’) as at and on the auditor’s judgement, including the assessment
for the year ended 31 December 2020, we have audited of the risks of material misstatement of the financial
the internal financial controls with reference to financial statements, whether due to fraud or error.
statements of the Company as at that date.
5. We believe that the audit evidence we have obtained is
Responsibilities of Management and Those Charged sufficient and appropriate to provide a basis for our audit
with Governance for Internal Financial Controls opinion on the Company’s internal financial controls with
reference to financial statements.
2. 
The Company’s Board of Directors is responsible for
establishing and maintaining internal financial controls Meaning of Internal Financial Controls with Reference
based on the internal financial controls with reference to Financial Statements
to financial statements criteria established by the
6.  company’s internal financial controls with reference
A
Company considering the essential components of
to financial statements is a process designed to
internal control stated in the Guidance Note on Audit
provide reasonable assurance regarding the reliability
of Internal Financial Controls over Financial Reporting
of financial reporting and the preparation of financial
(‘the Guidance Note’) issued by the Institute of Chartered
statements for external purposes in accordance with
Accountants of India (‘ICAI’). These responsibilities
generally accepted accounting principles. A company’s
include the design, implementation and maintenance of
internal financial controls with reference to financial
adequate internal financial controls that were operating
statements include those policies and procedures that (1)
effectively for ensuring the orderly and efficient conduct
pertain to the maintenance of records that, in reasonable
of the Company’s business, including adherence to
detail, accurately and fairly reflect the transactions and
the Company’s policies, the safeguarding of its assets,
dispositions of the assets of the company; (2) provide
the prevention and detection of frauds and errors,
reasonable assurance that transactions are recorded as
the accuracy and completeness of the accounting
necessary to permit preparation of financial statements
records, and the timely preparation of reliable financial
in accordance with generally accepted accounting
information, as required under the Act.
principles, and that receipts and expenditures of
Auditor’s Responsibility for the Audit of the Internal the company are being made only in accordance
Financial Controls with Reference to Financial with authorisations of management and directors of
Statements the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised
3.  ur responsibility is to express an opinion on the
O
acquisition, use, or disposition of the company’s assets
Company’s internal financial controls with reference to
that could have a material effect on the financial
financial statements based on our audit. We conducted
statements.
our audit in accordance with the Standards on Auditing
issued by the ICAI prescribed under Section 143(10) Inherent Limitations of Internal Financial Controls
of the Act, to the extent applicable to an audit of with Reference to Financial Statements
internal financial controls with reference to financial
7. Because of the inherent limitations of internal financial
statements, and the Guidance Note issued by the ICAI.
controls with reference to financial statements, including
Those Standards and the Guidance Note require that we
the possibility of collusion or improper management
comply with ethical requirements and plan and perform
override of controls, material misstatements due to error
the audit to obtain reasonable assurance about whether
or fraud may occur and not be detected. Also, projections
adequate internal financial controls with reference to
of any evaluation of the internal financial controls with
financial statements were established and maintained
reference to financial statements to future periods are
and if such controls operated effectively in all material
subject to the risk that the internal financial controls
respects.
with reference to financial statements may become
4.  ur audit involves performing procedures to obtain audit
O inadequate because of changes in conditions, or that
evidence about the adequacy of the internal financial the degree of compliance with the policies or procedures
controls with reference to financial statements and may deteriorate.

182
Annual Report 2020

Opinion For Walker Chandiok & Co LLP

Chartered Accountants
8. In our opinion, the Company has, in all material respects,
Firm’s Registration No.: 001076N/N500013
adequate internal financial controls with reference to
financial statements and such controls were operating
effectively as at 31 December 2020, based on the internal
Khushroo B. Panthaky
financial controls with reference to financial statements
Partner
criteria established by the Company considering the
Membership No.: 042423
essential components of internal control stated in the

Corporate Overview
Guidance Note issued by the ICAI. UDIN: 21042423AAAAAX9467
Place: Mumbai
Date: 11 February 2021

Statuory Reports
Financial Statements

183
CRISIL Limited

Standalone Balance Sheet

as at December 31, 2020

(Rupees in lakhs)
As at As at
Particulars Notes
December 31, 2020 December 31, 2019
ASSETS
1. Non-current assets
(a) Property, plant and equipment 3A 3,101 2,829
(b) Right of use assets 3B 10,697 -
(c) Intangible assets 4 795 1,087
(d) Intangible assets under development 979 1,180
(e) Financial assets
i. Investments 5 37,921 38,373
ii. Loans 6 2,317 3,250
iii. Other financial assets 7 61 51
(f) Deferred tax assets (net) 8 2,433 2,836
(g) Tax assets 9 4,145 4,815
(h) Other non-current assets 10 372 1,031
2. Current assets
(a) Financial assets
i. Investments 5 29,298 25,225
ii. Trade receivables 11 11,723 15,343
iii. Cash and cash equivalents 12 9,775 7,127
iv. Other bank balances 13 168 167
v. Loans 14 6,685 715
vi. Other financial assets 15 10,387 3,670
(b) Other current assets 16 2,754 3,171
3. Asset held for sale 17 318 318
TOTAL ASSETS 133,929 111,188

EQUITY AND LIABILITIES

1. Equity
(a) Equity share capital 18 726 723
(b) Other equity 19 68,806 75,152
2. Non-current liabilities
(a) Financial liabilities
Other financial liabilities 20 7,896 537
(b) Provisions 21 1,688 1,358
3. Current liabilities
(a) Financial liabilities
i. Trade payables 22
- Total outstanding dues of micro enterprises and small enterprises 9 3
- Total outstanding dues of creditors other than micro enterprises and 5,486 6,755
small enterprises
ii. Other financial liabilities 23 38,033 8,053
(b) Provisions 24 5,557 5,687
(c) Other current liabilities 25 5,728 12,920
TOTAL EQUITY AND LIABILITIES 133,929 111,188
Summary of significant accounting policies 2
The accompanying notes are an integral part of the standalone financial statements.

This is the Standalone Balance Sheet

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

184
Annual Report 2020

Standalone Statement of Profit and Loss

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars Notes
December 31, 2020 December 31, 2019
Income
Revenue from operations 26 88,878 83,901

Corporate Overview
Other income 27 10,395 12,981
Total 99,273 96,882
Expenses
Employee benefits expenses 28 43,634 42,829
Finance cost 29 694 -
Depreciation and amortisation expenses 30 6,568 2,396
Other expenses 31 26,544 31,939
Total 77,440 77,164
Profit before tax from continuing operations 21,833 19,718
Tax expense 8
Current tax 5,928 4,609
Deferred tax (767) 1,558
Total tax expense 5,161 6,167
Profit after tax for the year from continuing operations 16,672 13,551
Profit before tax from discontinued operations 46 - 18,066
Tax expense of discontinued operations - 4,988
Profit after tax from discontinued operations - 13,078
Profit after tax for the year 16,672 26,629

Statuory Reports
Other comprehensive (income) / expense (OCI)
A. Items that will be reclassified to profit or loss:
The effective portion of gains and loss on hedging instruments in a cash flow hedge (579) 293
Tax effect on above 146 (102)
B. Items that will not be reclassified to profit or loss:
Remeasurements of the defined benefit plans 390 214
Equity instruments through other comprehensive income 3,052 9,279
Tax effect on above (118) (90)
Total comprehensive income for the year 13,781 17,035
Earnings per share : Nominal value of Rupee 1 per share 41
From continuing operations
Basic 23.00 18.76
Diluted 22.98 18.73
From discontinued operations
Basic - 18.10
Diluted - 18.08

Financial Statements
From continuing and discontinued operations
Basic 23.00 36.86
Diluted 22.98 36.81
Number of equity shares used in computing earnings per share
Basic 7,24,94,072 7,22,43,688
Diluted 7,25,47,286 7,23,39,528
Summary of significant accounting policies 2
The accompanying notes are an integral part of the standalone financial statements.

This is the Standalone Statement of Profit and Loss

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

185
CRISIL Limited

Standalone Cash Flow Statement

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
A. Cash flow from operating activities:
Profit before tax (from continuing and discontinued operations) 21,833 37,784
Adjustments for :
Depreciation/Amortisation 7,473 2,626
Interest income on financial assets carried at amortized cost (249) (227)
Waiver of lease liability (167) -
Unrealised foreign exchange gain (701) (243)
(Profit)/ loss on sale of property, plant and equipment 1 (39)
(Profit)/ loss on fair valuation of current investments (252) (387)
(Profit)/ loss on sale of current investments (698) (981)
Interest on lease liability 691 -
Interest on bank overdraft 3 -
Provision for doubtful debts/bad debts 140 168
Provision for doubtful security deposits 28 4
Excess provison written back (395) -
Interest on income tax refund - (361)
Interest on bank deposits (46) (30)
Interest on loan from subsidiary (811) (10)
Dividend on investments (441) (5,485)
Share based payment to employees 76 356
Operating profit before working capital changes 26,485 33,175
Movements in working capital
- (Increase)/decrease in trade receivables 3,462 2,690
- (Increase)/decrease in loans 469 660
- (Increase)/decrease in other non-current assets 100 (357)
- (Increase)/decrease in other current financial assets (5,562) (2,101)
- (Increase)/decrease in other current assets (423) (46)
- Increase/(decrease) in trade payables (1,249) 1,537
- Increase/(decrease) in provisions 205 52
- Increase/(decrease) in other current financial liabilities 27,693 1,336
- Increase/(decrease) in other current liabilities (7,192) 281
- Increase/(decrease) in other non-current financial liabilities (40) (237)
Cash generated from operations 43,948 36,990
- Taxes paid (5,258) (10,456)
Net cash generated from operating activities - (A) 38,690 26,534
B. Cash flow from investing activities :
Purchase of property, plant and equipment and intangible assets (including movement of (2,576) (2,386)
intangible assets under development and capital advances)
Proceeds from sale of property, plant and equipment and intangible assets 77 125
Interest on loan from subsidiaries 654 10
Loan (given to)/ repaid by subsidiaries (net) (4,764) 175
Proceeds from / (investments in) mutual funds (3,123) (5,554)
Investment in CRISIL Ratings Limited (2,600) (10)
Fixed deposit with maturity more than three months placed (7) (2)
Interest on income tax refund - 361
Interest on bank deposits 47 33
Dividend on investments 441 5,485
Net cash used in investing activities - (B) (11,851) (1,763)

186
Annual Report 2020

Standalone Cash Flow Statement

for the year ended December 31, 2020

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
C. Cash flow from financing activities :

Corporate Overview
Receipts from issuance of share capital on account of exercise of ESOS 3,522 2,295
Receipts from subsidiaries for ESOS 171 458
Dividend and dividend tax paid (23,203) (25,162)
Payment of lease liability (4,679) -
Interest on bank overdraft (3) -
Net cash used in financing activities - (C) (24,192) (22,409)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 2,647 2,362
Cash and cash equivalents - Opening balance 7,127 4,774
Add : Exchange difference on translation of foreign currency cash and cash equivalents 1 (9)
Cash and cash equivalents - Closing balance 9,775 7,127
Net increase/(decrease) in cash and cash equivalents 2,647 2,362
Components of cash and cash equivalents
Cash on hand and balances with banks on current account 9,775 6,727
Deposits with original maturity of less than three months - 400
Total 9,775 7,127

Statuory Reports
The accompanying notes are an integral part of the standalone financial statements.

This is the Cash Flow Statement

referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai

Financial Statements
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

187
188
Statement of Changes in Equity
for the year ended December 31, 2020

(Rupees in lakhs)
CRISIL Limited

A. Equity share capital 

Balance as at January 1, 2020 Changes in equity share capital during the year Balance as at December 31, 2020
(Refer Note 18)
723 3 726

Balance as at January 1, 2019 Changes in equity share capital during the year (Refer Note 18) Balance as at December 31, 2019
721 2 723

B. Other equity (Rupees in lakhs)

Reserves & Surplus Items of OCI Total
Capital Securities General Share- Retained Specialised Equity Hedge
redemption premium reserve based earnings Economic Instruments reserve
Particulars reserve reserve payment Zone through OCI
reserve (SEZ) Re-
investment
reserve
(Refer Note 19.1)
Balance as at January 1, 2020 27 20,107 14,115 6,668 58,713 - (24,514) 36 75,152
Profit for the year - - - - 16,672 - - - 16,672
Additions during the year - 3,519 - - - - - - 3,519
Share based payment to employees - - - 247 - - - - 247
Transitional impact on implementation of Ind AS 116 - - - - (690) - - - (690)
Leases (Refer Note 39)
Other comprehensive income - - - - (293) - (3,031) 433 (2,891)
Final dividend (Refer Note 42) - - - - (9,422) - - - (9,422)
Interim dividend (Refer Note 42) - - - - (13,781) - - - (13,781)
Exercise of stock option - 1,432 - (1,432) - - - - -
Balance as at December 31, 2020 27 25,058 14,115 5,483 51,199 - (27,545) 469 68,806
 Statement of Changes in Equity
for the year ended December 31, 2020

(Rupees in lakhs)
Items of Other Total
Reserves & Surplus Comprehensive Income
Annual Report 2020

(OCI)
Particulars Capital Securities General Share- Retained Special Equity Hedge
redemption premium reserve based earnings Economic Instruments reserve
reserve reserve payment Zone (SEZ) through OCI
reserve revinvestment
reserve
(Refer Note 19.1)
Balance as at January 1, 2019 27 16,915 14,115 6,753 56,950 450 (15,265) 227 80,172
Profit for the year - - - - 26,629 - - - 26,629
Additions during the year - 2,293 - - - - - - 2,293
Share based payment to employees - - - 814 - - - - 814
Other comprehensive income - - - - (154) - (9,249) (191) (9,594)
Final dividend (Refer Note 42) - - - - (7,938) - - - (7,938)
Interim dividend (Refer Note 42) - - - - (13,735) - - - (13,735)
Corporate dividend tax (Refer Note 42) - - - - (3,489) - - - (3,489)
Transfer to SEZ reinvestment reserve - - - - 450 (450) - - -
Exercise of stock option - 899 - (899) - - - - -
Balance as at December 31, 2019 27 20,107 14,115 6,668 58,713 - (24,514) 36 75,152
The accompanying notes are an integral part of the standalone financial statements.

This is the Standalone Statement of Changes in

Equity referred to in our audit report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

189
Financial Statements Statuory Reports Corporate Overview
CRISIL Limited

Summary of significant accounting policies and other explanatory information to

standalone financial statements as at and for the year ended December 31, 2020

1 Corporate information III to the Companies Act, 2013. Based on the nature of
products and time between the acquisition of assets
CRISIL Limited ("the Company" or "CRISIL") [CIN :
for processing and their realisation in cash or cash
L67120MH1987PLC042363] is a globally-diversified
equivalents, the Company has ascertained its operating
analytical Company providing ratings and research
cycle as twelve months for the purpose of current/non-
services. CRISIL is the foremost provider of high-end
current classification of assets and liabilities.
research to the world’s largest banks and leading
corporations. CRISIL delivers analysis, opinions, 2.3 Use of estimates and judgments
and solutions that make markets function better.  he preparation of the standalone financial statements
T
CRISIL Limited is a public limited Company, domiciled in conformity with Ind AS requires the management to
in India. The registered office of the Company is located make estimates, judgments and assumptions that affect
at CRISIL House, Central Avenue, Hiranandani Business the reported balances of assets and liabilities (including
Park, Powai, Mumbai - 400076. The equity shares of the contingent liabilities) as at the date of the financial
Company are listed on recognised stock exchanges in statements and the reported income and expenses for
India - The Bombay Stock Exchange and the National the years presented. Application of accounting policies
Stock Exchange. that require critical accounting estimates involving
These standalone financial statements for the year complex and subjective judgements and the use of
ended December 31, 2020 were approved by the Board assumptions in these standalone financial statements
of Directors on February 11, 2021. have been disclosed below. Accounting estimates could
change from period to period. Actual results could differ
 &P Global Inc. the ultimate holding Company, through
S
from those estimates. Appropriate changes in estimates
its subsidiaries owned 67.13% as on December 31, 2020
are made as management becomes aware of changes
of the Company's equity share capital (Refer Note 18).
in circumstances surrounding the estimates. Changes
in estimates are reflected in the standalone financial
2 Summary of significant accounting policies statements in the period in which changes are made
and, if material, their effects are disclosed in the notes
2.1 Statement of compliance
to the standalone financial statements.
These standalone financial statements have been
Estimates and assumptions are required in particular
prepared in accordance with Indian Accounting
for:
Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015 read with •  seful life and residual value of property, plant and
U
Section 133 of the Companies Act, 2013, (the ‘Act’) and equipment (PPE) and intangible assets
other relevant provisions of the Act.
Useful lives of PPE and intangible assets are

Functional and presentation currency based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful
 hese standalone financial statements are presented
T
lives are different from that prescribed in Schedule
in Indian rupees, which is the functional currency of
II, they are based on technical advice, taking into
the Company. All financial information is presented in
account the nature of the asset, the estimated
Indian rupees.
usage of the asset, the operating conditions of the
2.2 Basis of preparation asset, past history of replacement, anticipated
technological changes, manufacturers’ warranties
These standalone financial statements have been
and maintenance support. Assumptions also need
prepared under the historical cost convention on an
to be made, when it is assessed, whether an asset
accrual basis, except for certain financial instruments
may be capitalised and which components of the
which are measured at fair value at the end of each
cost of the asset may be capitalised.
reporting period. Historical cost is generally based on
the fair value of the consideration given in exchange for • Leases
goods and services on the transaction date. Fair value is
Ind AS 116 requires lessees to determine the lease
the price that would be received to sell an asset or paid
term as the non-cancellable period of a lease
to transfer a liability in an orderly transaction between
adjusted with any option to extend or terminate
market participants at the measurement date.
the lease, if the use of such option is reasonably
All the assets and liabilities have been classified as certain. The Company makes an assessment on the
current or non-current as per the Company's normal expected lease term on a lease-by-lease basis and
operating cycle and other criteria set out in Schedule thereby assesses whether it is reasonably certain

190
Annual Report 2020

that any options to extend or terminate the contract tax assets at the end of each reporting period. The
will be exercised. In evaluating the lease term, the policy for the same has been explained under note
Company considers factors such as any significant 2.17.
leasehold improvements undertaken over the
• Provisions
lease term, costs relating to the termination of the
lease and the importance of the underlying asset to Provision is recognised when the Company has
the Company’s operations taking into account the a present obligation as a result of past event and
location of the underlying asset and the availability it is probable that an outflow of resources will
of suitable alternatives. The lease term in future be required to settle the obligation, in respect

Corporate Overview
periods is reassessed to ensure that the lease term of which a reliable estimate can be made.
reflects the current economic circumstances. Provisions (excluding retirement obligations and
compensated absences) are not discounted to its
• Revenue recognition
present value and are determined based on best
Revenue from rendering of services is recognised estimate required to settle the obligation as at the
when the obligation to render services based on Balance Sheet date. These are reviewed at each
agreements/arrangements with the customers balance sheet date adjusted to reflect the current
are satisfied and when there are no longer any best estimates.
unfulfilled obligations. The performance obligations
• Share-based payments
in our contracts are fulfilled at the time of delivery
or upon formal customer acceptance depending The grant date fair value of options granted to
on customer terms. Revenue is recognised only to employees is recognised as an employee expense,
the extent that it is highly probable a significant with a corresponding increase in equity, over the
reversal will not occur. period that the employees become unconditionally

Statuory Reports
entitled to the options. The expense is recorded for
The Company exercises judgement in determining
each separately vesting portion of the award as if
whether the performance obligation is satisfied at
the award was, in substance, multiple awards. The
a point in time or over a period of time. The Company
increase in equity recognised in connection with
considers indicators such as how customer
share-based payment transaction is presented
consumes benefits as services are rendered or who
as a separate component in equity under “share-
controls the asset as it is being created or existence
based payment reserve”. The amount recognised as
of enforceable right to payment for performance to
an expense is adjusted to reflect the impact of the
date and alternate use of such product or service,
revision of original estimates based on number of
transfer of significant risks and rewards to the
options that are expected to vest, in the statement
customer, acceptance of delivery by the customer,
of profit and loss with a corresponding adjustment
etc.
to equity.
• Recognition and measurement of defined benefit
2.4 Property, Plant and Equipment (PPE)

Financial Statements
obligations
Property, plant and equipment are measured at cost
 he obligation arising from defined benefit plan is
T
less accumulated depreciation and impairment
determined on the basis of actuarial assumptions.
losses, if any. Amount capitalised under property, plant
As actuarial valuation involves making various
and equipment includes purchase price, duties and
assumptions that may be different from the
taxes, other incidental expenses incurred during the
actual development in the future, key actuarial
construction/installation stage. If significant parts of
assumptions include discount rate, trends in salary
an item of property, plant and equipment have different
escalation, attrition and mortality rate. The discount
useful lives, then they are accounted for as separate
rate is determined by reference to market yields
items (major components) of property, plant and
at the end of the reporting period on government
equipment.
bonds. The period to maturity of the underlying
bonds correspond to the probable maturity of the An item of property, plant and equipment is derecognised
post-employment benefit obligations. upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
• Valuation of taxes on income
Any gain or loss on disposal of an item of property, plant
 ignificant judgements are involved in determining
S and equipment is recognised in the statement of profit
the provision for income taxes, including the amount and loss.
expected to be paid or recovered in connection with
Capital work-in-progress in respect of assets which
uncertain tax positions. Uncertain tax position is
are not ready for their intended use are carried at cost,
with regards to items of expense or transaction
comprising of direct costs, related incidental expenses
that may be challenged by tax authorities. The
and attributable interest.
Company reviews the carrying amount of deferred

191
CRISIL Limited

Standalone Financial Statements

2.5 Intangibles is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine
Intangible assets are carried at cost less accumulated
the recoverable amount. The carrying amount of the
amortisation and impairment losses, if any. The cost
asset is increased to its revised recoverable amount,
of an intangible asset comprises of its purchase price,
provided that this amount does not exceed the carrying
including any import duties and other taxes (other
amount that would have been determined (net of any
than those subsequently recoverable from the taxing
accumulated amortisation or depreciation) has no
authorities), and any directly attributable expenditure on
impairment loss been recognised for the asset in the
making the asset ready for its intended use. Subsequent
prior years. An asset’s recoverable amount is the higher
expenditure is capitalised only if it is probable that
of an asset’s or cash generating unit’s (CGU) net selling
the future economic benefits associated with the
price and its value in use.
expenditure will flow to the Company. Expenditure on
development eligible for capitalisation are carried as The recoverable amount is determined for an individual
intangible assets under development where such assets asset, unless the asset does not generate cash inflows
are not yet ready for their intended use. that are largely independent of those from other assets
or groups of assets. Value in use is the present value
2.6 Depreciation/amortisation
of an asset calculated by estimating its net future

Based on internal assessment and independent value including the disposal value. In determining net
technical evaluation carried out by external valuers selling price, recent market transactions are taken
the management believes that the useful lives as given into account, if available. If no such transactions can
below best represent the period over which management be identified, an appropriate valuation model is used.
expects to use these assets. Hence in certain class of After impairment, depreciation is provided on the
assets, the useful lives is different from the useful lives revised carrying amount of the asset over its remaining
prescribed under Part C of Schedule II of the Companies useful life.
Act, 2013. Depreciation/amortisation is provided on
b) Impairment of financial assets
straight line method (SLM) over useful life.
In accordance with Ind-AS 109, the Company applies
Type of asset Estimated Expected Credit Loss (ECL) model for measurement and
useful life recognition of impairment loss on the following financial
Buildings 20 Years assets and credit risk exposure:
Furniture and fixtures 10 Years i) Financial assets that are measured at amortized
Office equipment 3 to 10 Years cost e.g., loans, deposits, and bank balances.
Computers 3 Years ii) Trade receivables.
Vehicles 3 Years
The Company follows ‘simplified approach’ for
Software 1 to 3 Years
recognition of impairment loss allowance on trade
The estimated useful lives of PPE and intangible assets receivables which do not contain a significant
as well as the depreciation and amortization period financing component. The application of simplified
are reviewed at the end of each financial year and the approach does not require the Company to track
depreciation and amortization method is revised to changes in credit risk. Rather, it recognises
reflect the changed pattern, if any. impairment loss allowance based on lifetime ECLs
at each reporting date.
Leasehold improvements are amortized over the lease
term or useful life of the asset, whichever is lower, over a For all other financial assets, ECL is measured at
period of 1 to 9 years. an amount equal to the twelve month ECL unless
there has been a significant increase in credit risk
2.7 Impairment
from the initial recognition in which case those are
a) Impairment of non-financial assets measured at lifetime ECL.

The carrying amounts of assets are reviewed at 2.8 Leases
each balance sheet date if there is any indication of
Leases where the lessor effectively retains substantially
impairment based on internal/external factors. An
all the risks and benefits of ownership of the leased
impairment loss is recognised wherever the carrying
item, are classified as operating leases. Operating
amount of an asset exceeds its recoverable amount in
lease payments are recognised as an expense in the
the statement of profit and loss. An impairment loss
statement of profit and loss on a straight-line basis over

192
Annual Report 2020

the lease term. Lease incentives received are recognised Right of use assets are tested for impairment
as an integral part of the total lease expense, over the whenever there is any indication that their carrying
term of the lease. amounts may not be recoverable. Impairment loss,
if any, is recognised in the statement of profit and
 he Company’s lease assets consists of office premises.
T
loss.
The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or The Company measures the lease liability at
contains, a lease if the contract conveys the right to the present value of the lease payments that
control the use of an identified asset for a period of time are not paid at the commencement date of the

Corporate Overview
in exchange for consideration. lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate
To assess whether a contract conveys the right to control
can be readily determined. If that rate cannot be
the use of an identified asset, the Company assesses
readily determined, the Company uses incremental
whether:
borrowing rate.
(i) the contract involves the use of an identified asset
The lease payments shall include fixed payments,
(ii) the Company has substantially all of the economic variable lease payments based on an index or
benefits from use of the asset through the period of rate, residual value guarantees, exercise price of a
the lease and purchase option where the Company is reasonably
certain to exercise that option and payments of
(iii) the Company has the right to direct the use of the
penalties for terminating the lease, if the lease
asset
term reflects the lessee exercising an option to
Where the Company is a lessee terminate the lease.
The Company determines the lease term as the The lease liability is subsequently remeasured

Statuory Reports
non-cancellable period of a lease, together with by increasing the carrying amount to reflect
periods covered by an option to extend the lease, interest on the lease liability, reducing the carrying
where the Company is reasonably certain to amount to reflect the lease payments made and
exercise that option. remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect
At the date of commencement of the lease, the
revised in-substance fixed lease payments.
Company recognises a right of use asset and
a corresponding lease liability for all lease Lease liability and right of use assets have been
arrangements in which it is a lessee, except for presented separately in the Balance Sheet and
leases with a term of twelve months or less (short- lease payments are classified as cash used in
term leases) and leases of low value assets. For financing activities in the statement of cash flows.
these short-term and leases of low value assets,
Company as a lessor
the Company recognises the lease payments as an

Financial Statements
operating expense on a straight-line basis over the Leases under which the Company is a lessor are
term of the lease. classified as finance or operating leases. Lease
contracts where all the risks and rewards are
The cost of the right of use asset measured at
substantially transferred to the lessee, the lease
inception shall comprise of the amount of the
contracts are classified as finance leases. All other
initial measurement of the lease liability adjusted
leases are classified as operating leases.
for any lease payments made at or before the
commencement date less any lease incentives Transition
received, plus any initial direct costs incurred and
Effective January 1, 2020, the Company has
an estimate of costs to be incurred by the lessee in
adopted Ind AS 116 “Leases” and applied the
dismantling and removing the underlying asset or
standard to all applicable lease contracts
restoring the underlying asset or site on which it is
existing on January 1, 2020 using the modified
located.
retrospective method and has taken the
The right of use assets is subsequently measured cumulative adjustment to retained earnings,
at cost less any accumulated depreciation, on the date of initial application. Consequently,
accumulated impairment losses, if any and the Company recorded the lease liability at the
adjusted for any remeasurement of the lease present value of the lease payments discounted
liability. The right of use assets is depreciated using at the incremental borrowing rate and the right of
the straight-line method from the commencement use asset at its carrying amount as if the standard
date over the shorter of lease term or useful life had been applied since the commencement date
of right of use asset. The estimated useful lives of of the lease, but discounted at the Company’s
right of use assets are determined on the same incremental rate at the date of initial application.
basis as those of property, plant and equipment. Comparatives as at and for the year ended

193
CRISIL Limited

Standalone Financial Statements

December 31, 2019 have not been retrospectively (ii) 
Financial assets at fair value through other
adjusted and therefore will continue to be reported comprehensive income (FVTOCI)
under the accounting policies included as part of
 financial asset is subsequently measured at fair
A
our financial statements for year ended December
value through other comprehensive income if it is
31, 2019.
held within a business model whose objective is
2.9 Share capital achieved by both collecting contractual cash flows
and selling financial assets and the contractual
 rdinary shares are classified as equity, incremental
O
terms of the financial asset give rise on specified
costs directly attributable to the issue of new shares or
dates to cash flows that are solely payments of
options are shown in equity as a deduction, net of tax,
principal and interest on the principal amount
from proceeds.
outstanding. Further, in cases where the Company
2.10 Fair value of financial instruments has made an irrevocable election based on its
business model, for its investments which are
I n determining the fair value of the financial instruments
classified as equity instruments, the subsequent
the Company uses variety of methods and assumptions
changes in fair value are recognised in other
that are based on market conditions and risk existing
comprehensive income.
at each reporting date. The method used to determine
the fair value includes discounted cash flow analysis, (iii) Financial assets at fair value through profit or
available quoted market prices and dealer quotes. loss (FVTPL)
All method of accessing fair value results in general
A financial asset which is not classified in any of
approximation of value and such value may never
the above categories are subsequently fair valued
actually be realised. For all other financial instruments
through profit or loss.
the carrying amounts approximates fair value due to
short term maturity of those instruments. (iv) Financial liabilities
2.11 Financial instruments Financial liabilities are subsequently carried at
amortised cost using the effective interest method,
Initial recognition
except for contingent consideration recognised
 he Company recognises financial assets and financial
T in a business combination which is subsequently
liabilities when it becomes a party to the contractual measured at fair value through profit and loss. For
provisions of the instrument. All financial assets trade and other payables maturing within one year
and liabilities are recognised at fair value on initial from the balance sheet date, the carrying amounts
recognition, except for trade receivables which are approximate the fair value due to the short maturity
initially measured at transaction price. Transaction of these instruments.
costs that are directly attributable to the acquisition or
b) Derivative financial instruments
issue of financial assets and liabilities, which are not
at fair value through profit or loss, are added to the fair  he
T Company uses derivative financial
value on initial recognition. Regular way purchase and instruments i.e. foreign exchange forward and
sale of financial assets are accounted for at trade date. options contracts to manage its exposure to
foreign exchange risks. Such derivative financial
Subsequent measurement
instruments are initially recognised at fair value
a) Non-derivative financial instruments on the date on which a derivative contract is
entered into and are subsequently re-measured
(i) Financial assets carried at amortized cost
at fair value. Derivatives are carried as financial
A financial asset is subsequently measured at assets when the fair value is positive and as
amortised cost if it is held within a business model financial liabilities when the fair value is negative.
whose objective is to hold the asset in order to The Company uses hedging instruments that are
collect contractual cash flows and the contractual governed by the policies of the Company.
terms of the financial asset give rise on specified
(i) Cash flow hedges
dates to cash flows that are solely payments of
principal and interest on the principal amount Changes in the fair value of the derivative hedging
outstanding. For financial assets maturing within instrument designated as a cash flow hedge are
one year from the balance sheet date, the carrying recognised in other comprehensive income and
amounts approximate the fair value due to the presented within equity in the cash flow hedging
short maturity of these instruments.

194
Annual Report 2020

reserve to the extent that the hedge is effective. To 2.13 Cash and cash equivalents
the extent that the hedge is ineffective, changes in
Cash and cash equivalents in the balance sheet
fair value are recognised in the statement of profit
comprise cash at bank and in hand and short-term
and loss. If the hedging instrument no longer meets
investments with an original maturity of three months
the criteria for hedge accounting, expires or is sold,
or less.
terminated or exercised, then hedge accounting is
discontinued prospectively. The cumulative gain or 2.14 Revenue recognition
loss previously recognised in the cash flow hedging
Income from operations
reserve is transferred to the statement of profit and

Corporate Overview
loss upon the occurrence of the related forecasted Income from operations comprises income from initial
transaction. rating and surveillance services, global research and
analytical services, customised research, special
(ii) Receivable hedge
assignments and subscriptions to information products
Changes in fair value of foreign currency derivative and services, revenue from IPO grading services and
instruments not designated as cash flow hedges independent equity research (IER) services.
and the ineffective portion of cash flow hedges are
• Revenue from Initial rating fees are deemed to
recognised in the statement of profit and loss and
accrue on the date the rating is awarded.
reported within foreign exchange gains/(losses).
•  urveillance fee, subscription to information
S
Derecognition of financial instruments
products and services and revenue from IER are
The Company derecognises a financial asset when accounted on a time proportion basis and revenue
the contractual rights to the cash flows from the is straight lined over the period of performance.
financial asset expire or it transfers the financial
•  evenue from customised research and IPO
R

Statuory Reports
asset and the transfer qualifies for derecognition
grading are recognised in the period in which such
under Ind AS 109. The changes in fair value of
assignments are carried out in a time proportion
equity investments designated at FVTOCI are
basis.
accumulated within 'Equity instruments at OCI'
reserve within equity. The Company transfers •  lobal research and analytics revenue consists of
G
amounts from this reserve to retained earnings time and material contracts which is recognised
if these equity instruments are derecognised. A on output basis measured by number of hours/
financial liability (or a part of a financial liability) days/weeks worked at the rates specified in the
is derecognised from the Balance Sheet when the agreements.
obligation specified in the contract is discharged or Provision for estimated losses, if any, on

cancelled or expires. uncompleted contracts are recorded in the year
2.12 Provision, contingent liabilities and contingent assets: in which such losses become certain based on the
current estimates.

Financial Statements
A provision is recognized when the Company has a
present obligation as a result of past event and it is Revenue from group companies is recognised
probable that an outflow of resources will be required based on transaction price which is at arm’s length.
to settle the obligation, in respect of which reliable Accrued revenue are classified as Unbilled
estimate can be made. If the effect of the time value of receivables (only act of invoicing is pending) when
money is material, provisions are discounted using a there is unconditional right to receive cash, and
current pre-tax rate that reflects, when appropriate, the only passage of time is required, as per contractual
risks specific to the liability. When discounting is used, terms.
the increase in the provision due to the passage of time
is recognized as a finance costs. Unearned and deferred revenue (“contract liability”)
is recognised when there are billings in excess of
Contingent liabilities are disclosed for: revenues.
(i) possible obligations which will be confirmed only The billing schedules agreed with customers
by future events not wholly within the control of the include periodic performance based payments
Company or and/or milestone based progress payments.
(ii) present obligations arising from past events where Invoices are payable within contractually agreed
it is not probable that an outflow of resources will credit period. Contracts are subject to modification
be required to settle the obligation or a reliable to account for changes in contract specification
estimate of the amount of the obligation cannot be and requirements. The Company reviews
made. modification to contract in conjunction with the
original contract, basis which the transaction price
 ontingent assets are disclosed wherein an inflow
C
could be allocated to a new performance obligation
of economic benefits is probable.
or transaction price of an existing obligation could

195
CRISIL Limited

Standalone Financial Statements

undergo a change. In the event transaction price of economic benefits available in the form of any
is revised for existing obligation, a cumulative future refunds from the plan or reductions in future
adjustment is accounted for. contributions to the plan. To calculate the present value
of economic benefits, consideration is given to any
Grant income
applicable minimum funding requirements.
Export benefits from government authorities are
 emeasurement of the net defined benefit liability,
R
received in the form of saleable scrips and are
which comprise actuarial gains and losses and the
recognised at fair value in the statement of profit
return on plan assets (excluding interest) and the
and loss under “other income”, where all attaching
effect of the asset ceiling (if any, excluding interest), are
conditions will be complied with and to the extent
recognised immediately in other comprehensive income
there is no significant uncertainty as to the ultimate
(OCI). Net interest expense (income) on the net defined
realisation on transfer of scrips in the year of the
liability (assets) is computed by applying the discount
sale. The related costs are recognised under “other
rate, used to measure the net defined liability (asset).
expense”.
Net interest expense and other expenses related to
Interest income defined benefit plans are recognised in the statement of
profit and loss.
Interest income is recognised on a time proportion
basis taking into account the amount outstanding  hen the benefits of a plan are changed or when a
W
and the rate applicable. plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment
Dividend income
is recognised immediately in the statement of profit
Dividend income is recognised when the Company’s and loss. The Company recognises gains and losses
right to receive payment is established by the on the settlement of a defined benefit plan when the
balance sheet date. settlement occurs.
Profit /(loss) on sale of current investment Short term compensated absences are provided for
Profit/(loss) on sale of current investment is based on estimates. Long term compensated absences
accounted when the sale is executed. On disposal are provided for based on actuarial valuation. The
of such investments, the difference between the actuarial valuation is done as per projected unit credit
carrying amount and the disposal proceeds, net of method. The Company presents the leave as a current
expenses, is recognized in the statement of profit liability in the balance sheet, to the extent it does not
and loss. have an unconditional right to defer its settlement for
12 months after the reporting date. Where the Company
2.15 Retirement and other employee benefits has the unconditional legal and contractual right to
Short term employee benefits defer the settlement for a period beyond 12 months, the
same is presented as non-current liability.
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised for Defined contribution plans
the amount expected to be paid if the Company has Retirement benefits in the form of provident fund is a
a present legal or constructive obligation to pay this defined contribution plan and is charge to the statement
amount as a result of past service provided by the of profit and loss for each period of service rendered
employee and the obligation can be estimated reliably. by the employees. Excess or short of contribution
Defined benefit plans is recognised as an asset or liability in the financial
statement. There are no other obligations other than the
 he Company's net obligation in respect of defined
T contribution payable to the respective authorities.
benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees Employee stock compensation cost
have earned in the current and prior periods, discounting The Company recognises expense relating to share
that amount and deducting the fair value of any plan based payment in net profit using fair value in
assets. accordance with Ind AS 102-Share Based Payment.
The calculation of defined benefit obligations is The grant date fair value of options granted to

performed annually by a qualified actuary using the employees is recognised as an employee expense, with
projected unit credit method. When the calculation a corresponding increase in equity, over the period that
results in a potential asset for the Company, the the employees become unconditionally entitled to the
recognised asset is limited to the present value

196
Annual Report 2020

options. The expense is recorded for each separately Unrecognised deferred tax assets are reassessed at
vesting portion of the award as if the award was, in each reporting date and recognised to the extent that it
substance, multiple awards. The increase in equity has become probable that future taxable profits will be
recognised in connection with share based payment available against which they can be used. Deferred tax is
transaction is presented as a separate component measured at the tax rates that are expected to be applied
in equity under “share-based payment reserve”. The to temporary differences when they reverse, using tax
amount recognised as an expense is adjusted to reflect rates enacted or substantively enacted at the reporting
the actual number of stock options that vest. date. The measurement of deferred tax reflects the tax
consequences that would follow from the manner in

Corporate Overview
2.16 Foreign currency transactions
which the Company expects, at the reporting date, to
Foreign currency transactions are recorded at exchange recover or settle the carrying amount of its assets and
rates prevailing on the date of transaction. Foreign liabilities.
currency denominated monetary assets and liabilities
Deferred tax assets and liabilities are offset only if:
are restated into the functional currency using exchange
prevailing at the balance sheet date. Gains and losses a) The Company has a legally enforceable right to set off
arising on settlement and restatement of foreign current tax assets against current tax liabilities; and
currency denominated monetary assets and liabilities
b) The deferred tax assets and the deferred tax liabilities
are recognised in the statement of profit and loss. Non-
relate to income taxes levied by the same taxation
monetary assets and liabilities that are measured in
authority on the same taxable entity.
terms of historical cost in foreign currencies are not
translated. Deferred tax assets includes Minimum Alternate Tax
(MAT) paid in accordance with the tax laws which is
2.17 Taxes on income
likely to give future economic benefits in the from of

Statuory Reports
Income tax expense comprises current and deferred tax. availability of set off against future income tax liability.
It is recognised in the statement of profit and loss except Accordingly, MAT is recognised as deferred tax asset
to the extent that it relates items recognised directly in in the balance sheet when the asset can be measured
equity or in OCI. reliable and it is probable that the future economic
benefit associated with the asset will be realised.
Current tax
2.19 Earnings per share
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year Basic earnings per share are calculated by dividing the
and any adjustment to the tax payable or receivable in net profit or loss for the period attributable to equity
respect of previous years. It is measured using tax rates shareholders by the weighted average number of equity
enacted or substantively enacted at the reporting date. shares outstanding during the year. The weighted
Current tax assets and liabilities are offset only if, the average number of equity shares outstanding during
Company: the period is adjusted for events such as buy back,

Financial Statements
Employee Stock Option Scheme (ESOS), etc., that have
a) has a legally enforceable right to set off the recognised
changed the number of equity shares outstanding,
amounts; and
without a corresponding change in resources.
b) intends either to settle on a net basis, or to realize the
For the purpose of calculating diluted earnings per
asset and settle the liability simultaneously.
share, the Company has adopted treasury stock method
Deferred tax to compute the new shares that can possibly be created
by un-exercised stock options. The net profit or loss for
Deferred tax is recognised in respect of temporary
the period attributable to equity shareholders and the
differences between the carrying amounts of assets
weighted average number of shares outstanding during
and liabilities for financial reporting purposes and the
the period are adjusted for the effects of all dilutive
amounts used for taxation purposes.
potential equity shares.
Deferred tax assets are recognised for unused tax
2.20 Dividend
losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future  he final dividend on shares is recorded as a liability
T
taxable profits will be available against which they on the date of approval by the shareholders. Interim
can be used. Deferred tax assets are reviewed at each dividend is recognised as a liability on the date of
reporting date and are reduced to the extent that it is declaration by the Company's Board of Directors.
no longer probable that the related tax benefit will
2.21 Cash flow statement
be realised; such reductions are reversed when the
probability of future taxable profits improves. Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of

197
CRISIL Limited

Standalone Financial Statements

transactions of non-cash nature and any deferrals or current assets and disposal groups classified as held
accruals of past or future cash receipts or payments and for sale are measured at the lower of its carrying value
item of income or expenses associated with investing and fair value less costs to sell. Non-current assets held
or financing cash flows. Cash flow from operating, for sale are not depreciated or amortized.
investing and financing activities are segregated.
A discontinued operation is a component of the entity
2.22 Non-current assets held for sale and Discontinued that has been disposed off or is classified as held for
operations sale and:
Non-current assets or disposal groups comprising of • r epresents a separate major line of business or
assets and liabilities are classified as ‘held for sale’ geographical area of operations and;
when all of the following criterias are met: (i) decision
• i s part of a single co-ordinated plan to dispose
has been made to sell, (ii) the assets are available for
of such a line of business or area of operations.
immediate sale in its present condition, (iii) the assets
The results of discontinued operations are
are being actively marketed and (iv) sale has been
presented separately in the Standalone Statement
agreed or is expected to be concluded within 12 months
of Profit and Loss.
of the balance sheet date. Subsequently, such non-

198
 3A. Property, plant and equipment
For the year ended December 31, 2020
(Rupees in lakhs)
Carrying value Accumulated depreciation Net block
Particulars As at Additions Deductions Adjustments As at Up to For the Deductions Adjustments Up to As at
January 1, (Refer Note 46) December January 1, year (Refer Note 46) December December
Annual Report 2020

2020 31, 2020 2020 31, 2020 31, 2020

Buildings 10 - - - 10 10 - - - 10 -
Furniture and fixtures 925 39 123 8 833 665 75 98 7 635 198
Office equipments 1,703 42 27 45 1,673 1,176 123 16 37 1,246 427
Computers 5,627 1,531 35 331 6,792 4,190 895 33 256 4,796 1,996
Vehicles 601 24 148 150 327 341 115 123 83 250 77
Leasehold improvements 3,070 325 43 - 3,352 2,725 252 28 - 2,949 403
Total 11,936 1,961 376 534 12,987 9,107 1,460 298 383 9,886 3,101

For the year ended December 31, 2019

(Rupees in lakhs)
Carrying value Accumulated depreciation Net block
Particulars As at Additions Deductions Adjustments As at Up to For the Deductions Adjustments Up to As at
January 1, December January 1, year December December
2019 31, 2019 2019 31, 2019 31, 2019
Buildings 10 - - - 10 10 - - - 10 -
Furniture and fixtures 919 37 31 - 925 528 162 25 - 665 260
Office equipments 1,649 131 77 - 1,703 971 266 61 - 1,176 527
Computers 4,562 1,310 245 - 5,627 3,415 1,009 234 - 4,190 1,437
Vehicles 670 128 197 - 601 305 180 144 - 341 260
Leasehold improvements 3,052 18 - - 3,070 2,424 301 - - 2,725 345
Total 10,862 1,624 550 - 11,936 7,653 1,918 464 - 9,107 2,829

199
Financial Statements Statuory Reports Corporate Overview
200
Standalone Financial Statements
CRISIL Limited

3B. Right of use asset

For the year ended December 31, 2020
(Rupees in lakhs)
Carrying value Accumulated depreciation Net block
Transition Additions Lease Adjustments As at Up to For the Lease Adjustments Up to As at
Particulars impact of Ind Modification December 31, January 1, year Modification December December 31,
AS 116 (Refer 2020 2020 31, 2020 2020
Note 39)
Building 15,580 1,104 (2,339) - 14,345 - 4,912 (1,264) - 3,648 10,697
Total 15,580 1,104 (2,339) - 14,345 - 4,912 (1,264) - 3,648 10,697

4. Intangible assets
For the year ended December 31, 2020
(Rupees in lakhs)
Carrying value Accumulated amortisation Net block
Particulars As at Additions Deductions Adjustments As at Up to For the Deductions Adjustments Up to As at
January 1, (Refer Note 46) December 31, January 1, year (Refer Note December December
2020 2020 2020 46) 31, 2020 31, 2020
Software 2,595 817 - 10 3,402 1,508 1,101 - 2 2,607 795
Total 2,595 817 - 10 3,402 1,508 1,101 - 2 2,607 795

For the year ended December 31, 2019

(Rupees in lakhs)
Carrying value Accumulated amortisation Net block
Particulars As at Additions Deductions Adjustments As at Up to For the Deductions Adjustments Up to As at
January 1, December 31, January 1, year December December
2019 2019 2019 31, 2019 31, 2019
Software 2,463 132 - - 2,595 800 708 - - 1,508 1,087
Total 2,463 132 - - 2,595 800 708 - - 1,508 1,087
Annual Report 2020

5. Investments
As at December 31, 2020 As at December 31, 2019
A. Non-current investments No. of shares Rupees in No. of shares Rupees in
lakhs lakhs
Investments in subsidiaries
Unquoted equity investments carried at cost
Equity Shares of CRISIL Risk and Infrastructure Solutions Limited of 49,999,970 707 49,999,970 707
Rupee 1 each, fully paid up (Refer Note 5.1)

Corporate Overview
Equity Shares of CRISIL Irevna UK Limited, of £ 1 each, fully paid up 5,514,100 11,585 5,514,100 11,585
(Refer Note 5.1)
Equity Shares of CRISIL Irevna Argentina S.A. of ARS 1 each, fully paid 704,018 147 704,018 147
up (Refer Note 5.1)
100% Investment in the capital of CRISIL Irevna Information & - 244 - 244
Technology (Hangzhou) Co., Limited (Refer Note 5.1)
Equity Shares of Pragmatix Services Private Limited of Rupees 10 each, 3,140,000 5,600 3,140,000 5,600
fully paid up
Equity Shares of CRISIL Ratings Limited of Rupee 1 each, fully paid up 261,000,000 2,610 1,000,000 10
(Refer Note 5.4)
Sub - total (a) 20,893 18,293

Other investments
Unquoted equity investments carried at fair value through OCI (Refer
Notes 5.2 and 33)

Statuory Reports
Equity Shares of Caribbean Information and Credit Rating Agency of US 300,000 155 300,000 120
$1 each, fully paid up
Equity Shares of National Commodity and Derivative Exchange Limited 1,875,000 3,082 1,875,000 3,204
of Rupees 10 each, fully paid up
Sub - total (b) 3,237 3,324
Quoted equity investments carried at fair value through OCI (Refer
Notes 5.2 and 33)
Other Investments
Equity Share of CARE Ratings Limited of Rupees 10 each, fully paid up 2,622,431 13,791 2,622,431 16,756
Equity Share of ICRA Limited of Rupees 10 each, fully paid up (Refer 1 - 1 -
Note 5.3)
Sub - total (c) 13,791 16,756
Total non-current investments (A) - (a + b + c) 37,921 38,373

Financial Statements

201
CRISIL Limited

Standalone Financial Statements

As at December 31, 2020 As at December 31, 2019
B. Current investments No. of units Rupees in No. of units Rupees in
lakhs lakhs
Investments in mutual funds
(Unquoted investments carried at fair value through profit and loss)
(Refer Note 33)
L&T Banking and PSU Debt Fund - Direct Plan - Growth 8,531,402 1,715 - -
ICICI Prudential Savings Fund - Direct Plan - Growth 1,168,989 4,885 - -
Invesco India Treasury Advantage Fund - Direct Plan - Growth 149,826 4,533 - -
DSP Banking and PSU Debt Fund - Direct - Growth 25,079,791 4,805 - -
IDFC Ultra Short Term Fund - Direct Plan - Growth 13,849,417 1,645 - -
IDFC Low Duration Fund - Growth - Direct Plan 16,238,534 4,939 - -
Aditya Birla Sun Life Savings Fund - Growth - Direct Plan 1,135,020 4,802 - -
Kotak Savings Fund - Direct Plan - Growth 5,741,861 1,974 - -
HDFC Charity Fund for Cancer Cure - Debt Plan - Direct - 100% - - 2,500,000 255
Invesco India Short Term Fund - Direct Plan Growth - - 157,336 4,313
Axis Treasury Advantage Fund - Direct Growth - - 87,495 2,000
LIC MF Banking and PSU Debt Fund - Direct Plan - Growth - - 17,417,522 4,606
IDFC Bond Fund - Short Term Plan - Growth - (Direct Plan) - - 6,754,142 2,862
L&T Short Term Bond Fund - Direct Plan - Growth - - 14,588,155 2,863
L&T Money Market Fund - Direct Plan - Growth - - 19,892,581 4,001
DSP Short Term Fund - Direct Plan - Growth - - 5,104,208 1,797
DSP Corporate Bond Fund - Direct - Growth - - 4,325,447 501
Sundaram Corporate Bond Fund Direct Growth - - 7,064,600 2,027
Total investments in mutual funds (B) 29,298 25,225
Total investments (A + B) 67,219 63,598
The market value of quoted investments is equal to the carrying value
5.1 Includes deemed investment on account of share based payment recharge to employees of subsidiary companies.
5.2 T
 he total dividend recognized pertaining to FVTOCI instruments for the year ended on December 31, 2020 was Rupees 433 lakhs and for
the year ended December 31, 2019 was Rupees 761 lakhs. Dividend from equity investments designated at FVTOCI relates to investments
held at the end of the reporting period. For all the equity instruments that are classified by the Company as FVTOCI, fair value changes on
the instrument, excluding dividends, are recognized in the OCI. The Company recognizes dividend in statement of profit and loss under the
head “other income”.
5.3 ‘-’ in amounts’ columns denote amounts less than Rupees 50,000.
5.4 Company has invested additional Rupees 2,500 lakhs and Rupees 100 lakhs on March 31, 2020 and May 20, 2020 respectively pursuant
to the requirements of SEBI (Credit Rating Agencies) Regulations, 1999.

6. Loans (Non-current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Security deposits 2,317 3,250
Total 2,317 3,250

7. Other financial assets (Non-current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Interest accrued on fixed deposits 4 -
Other bank balances
Bank deposits with original maturity for more than 12 months 57 51
{Deposit includes fixed deposits with banks Rupees 6 lakhs (Previous year: 37 lakhs)
marked as lien for guarantees issued by banks on behalf of the Company (Refer Note 34)}
Total 61 51
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8. Income tax
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Current tax (from continuing and discontinued operations) 5,928 9,259
Deferred tax (from continuing and discontinued operations) (767) 1,896
Total income tax expense recognised in current year 5,161 11,155

Corporate Overview
The tax year for the Company being the year ending March 31, 2021, the tax expense for the year is the aggregate of the provision made for
the three month period ended March 31, 2020 and the provision for the nine month period ended December 31, 2020. The tax provision for
the nine month period has been arrived at using effective tax rate for the period April 1, 2020 to March 31, 2021.
The reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income
tax rate to profit before taxes is as follows:

(Rupees in lakhs)
Year ended Year ended
Particulars
Decmber 31, 2020 Decmber 31, 2019
Profit before tax (from continuing and discontinued operations) 21,833 37,784
Enacted income tax rate in India for fiscal year ended March 31, 2021 and March 31, 2020. (%) 25.17% 27.61%
Computed expected tax expense 5,495 10,433
Effect of:
Income exempt from tax (111) (292)
Expenses that are not deductible in determining taxable profit 162 289
Tax expense/(reversal) of prior years (368) 66
Income subject to different tax rates - (477)

Statuory Reports
Change in income tax rate - 1,247
Others (17) (111)
Total income tax expense recognised in the statement of profit and loss 5,161 11,155

Deferred tax
 he tax effect of significant temporary differences that resulted in deferred income tax assets and liabilities are as follows:
T
As at December 31, 2020
(Rupees in lakhs)
Opening Recognised Recognised Recognised Others* Closing
Particulars balance in profit in retained in OCI balance
and loss earnings
Deferred tax liability on :
Gains from other investments 642 - - (20) - 622
Gains from mutual funds 91 (28) - - - 63

Financial Statements
Gains / losses on forward contracts 13 - - 146 - 159
Gross deferred tax liablity 746 (28) - 126 - 844
Deferred tax asset on :
Discounting on security deposits 12 153 - - - 165
Provision for compensated absences 1,238 233 - - (225) 1,246
Provision for bonus and commission 123 64 - - (371) (184)
Provision for gratuity 535 28 - 98 (84) 577
Provision for doubtful debt 261 55 - - (182) 134
Unearned revenue 531 - - - (531) -
40A(ia) of the Income Tax Act, 1961 and other items 43 3 - - - 46
Property, plant and equipment and intangibles 839 102 - - 19 960
On lease liability and right to use - 101 232 - - 333
Gross deferred tax asset 3,582 739 232 98 (1,374) 3,277
Net deferred tax asset 2,836 767 232 (28) (1,374) 2,433

* represents the amount of deferred tax as on December 31, 2019 pertaining to Rating business which has been transferred to CRISIL
Ratings Limited. (Refer Note 46)

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Standalone Financial Statements

As at December 31, 2019
(Rupees in lakhs)
Opening Recognised Recognised Recognised Others* Closing
Particulars balance in profit in retained in OCI balance
and loss earnings
Deferred tax liability on :
Gains from other investments 672 - (30) - 642
Gains from mutual funds 50 41 - - 91
Gains / losses on forward contracts 115 - (102) - 13
Gross deferred tax liablity 837 41 (132) - 746
Deferred tax asset on :
Discounting on security deposits 11 1 - - 12
Provision for compensated absences 1,826 (588) - - 1,238
Provision for bonus and commission 634 (511) - - 123
Provision for gratuity 662 (187) 60 - 535
Provision for doubtful debt 620 (359) - - 261
Unearned revenue 598 (67) - - 531
40A(ia) of the Income Tax Act, 1961 and other items 36 7 - - 43
Property, plant and equipment and intangibles 990 (151) - - 839
Gross deferred tax asset 5,377 (1,855) 60 - 3,582
Net deferred tax asset 4,540 (1,896) 192 - 2,836

9. Tax assets (Non-current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Advance income-tax (net of provision for taxation) 4,145 4,815
{Provision of tax Rupees 120,050 lakhs (Previous year : Rupees 114,122 lakhs)}
Total 4,145 4,815

10. Other non-current assets

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Prepaid rent - 558
Capital advance 54 55
Prepaid expenses 318 418
Total 372 1,031

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11. Trade receivable (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Trade receivables considered good- Secured - -
Trade receivables considered good- Unsecured (Refer Note 37) 11,723 15,343
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 490 1,008

Corporate Overview
Less: Allowance for impairment loss (490) (1,008)
Total 11,723 15,343
The Company uses a provision matrix to determine impairment loss allowance on the portfolio trade receivables. The provision matrix
is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking
estimates. At period end, the historical observed default rates are updated and changes in the forward looking estimates are analyzed.

Specific allowance for loss is also been provided by the management based on expected recovery on individual customers.
Reconciliation of loss allowance: (Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening balance 1,008 1,755
Transferred to CRISIL Ratings Limited (714) -
Movement during the year 196 (747)
Closing balance 490 1,008

Statuory Reports
12. Cash and cash equivalents (Current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Balances with banks:
On current accounts 9,775 6,727
Deposits with original maturity of less than 3 months - 400
Total 9,775 7,127

13. Other bank balances (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019

Financial Statements
On unpaid dividend accounts 76 75
Deposit with original maturity for more than 3 months but less than 12 months 92 92
{(Deposit includes fixed deposits with banks Rupees 5 lakhs (Previous year Rupees 29
lakhs) marked as lien for guarantees issued by banks on behalf of the Company. (Refer Note
34)}
Total 168 167

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Standalone Financial Statements

14. Loans (Current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Loan to subsidiaries (Refer Notes 37 and 38) 5,089 325
Loans to employees 213 323
Security deposits
- Considered good 1,383 67
- Considered doubtful 43 27
Less: Allowance for impairment loss (43) (27)
Total 6,685 715
Sub-classification of loans:
Loan receivables considered good- Secured - -
Loan receivables considered good- Unsecured 6,685 715
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired 43 27
Less: Allowance for impairment loss (43) (27)
Total 6,685 715

15. Other financial assets (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Unsecured, considered good, unless otherwise stated
Advances recoverable (Refer Note 37) 909 673
Receivable from CRISIL Ratings Limited on account of transfer against purchase 5,170 -
consideration (Refer Note 37)
Unbilled receivables (Refer Note 15.1) 3,301 2,939
Accrued interest on fixed deposit 3 8
Interest accrued on loan to subsidiaries 158 1
Fair value of foreign currency forward contract (Refer Note 33) 846 49
Total 10,387 3,670

15.1 The balance lying in unbilled receivables as at December 31, 2019 is fully billed during the current year.

16. Other current assets

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Prepaid rent - 246
Prepaid expense 1,104 1,426
Balances with government authorities 863 931
Advances to suppliers and employees 787 568
Total 2,754 3,171

17. Asset held for sale

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Building (Refer Note 17.1) 318 318
Total 318 318

17.1 The Company has classified a building premise as asset held for sale at its carrying value amounting to Rupees 318 lakhs. The Company
has actively marketed the premise. The premise has been classified as unallocable as the Company believes that it is currently not
practicable to allocate the premise to any segment.

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Annual Report 2020

18. Equity share capital

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Authorised capital:
100,000,000 equity shares of Rupee 1 each 1,000 1,000
(Previous year 100,000,000 equity shares of Rupee 1 each)
Issued, subscribed and paid up:

Corporate Overview
72,593,290 equity shares of Rupee 1 each fully paid up 726 723
(Previous year 72,304,326 equity shares of Rupee 1 each)
Total 726 723

(a) Reconciliation of shares outstanding at the beginning and at the end of the year

Equity shares
As at December 31, 2020
Particulars
Rupees in lakhs Nos.
At the beginning of the year (face value of Rupee 1 per share) 723 72,304,326
Add : Issued during the year - Under employee stock option scheme (ESOS) (Refer Note 45) 3 288,964
Outstanding at the end of the year 726 72,593,290

As at December 31, 2019

Particulars
Rupees in lakhs Nos.
At the beginning of the year (face value of Rupee 1 per share) 721 72,115,782

Statuory Reports
Add : Issued during the year - Under employee stock option scheme (ESOS) (Refer Note 45) 2 188,544
Outstanding at the end of the year 723 72,304,326

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rupee 1 per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Shares held by holding/ultimate holding and/ or their subsidiaries

Out of equity shares issued by the Company, shares held by its Holding Company, Ultimate Holding Company and their subsidiaries/

Financial Statements
associates are as below:

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Group Holding of the S&P Global Inc.
31,209,480 equity shares of Rupee 1 each fully paid held by S&P India, LLC, fellow subsidiary 312 312
(Previous year 31,209,480 equity shares of Rupee 1 each)
11,523,106 equity shares of Rupee 1 each fully paid held by S&P Global Asian Holdings Pte. 115 115
Limited, fellow subsidiary (Previous year 11,523,106 equity shares of Rupee 1 each)
6,000,000 equity shares of Rupee 1 are held by Standard & Poor’s International LLC, fellow 60 60
subsidiary (Previous year 6,000,000 equity shares of Rupee 1 each)
Total 487 487

207
CRISIL Limited

Standalone Financial Statements

(d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period
of five years immediately preceding the reporting date

As at As at
Particulars
December 31, 2020 December 31, 2019
Equity shares bought back by the Company (in numbers)
Aggregate number of equity shares bought back by the Company (In last five years) Nil 511,932
Aggregate number of bonus shares and shares issued for consideration other than cash by Nil Nil
the Company

(e) Details of shareholders holding more than 5% shares in the Company

As at December 31, 2020

Name of the shareholder % holding in the Nos.
class
Equity shares of Rupee 1 each fully paid
1. Group Holding of the S&P Global Inc.
a) S&P India, LLC 42.99% 31,209,480
b) S&P Global Asian Holdings Pte. Limited 15.87% 11,523,106
c) Standard & Poor’s International LLC 8.27% 6,000,000
2. Life Insurance Corporation of India 5.95% 4,321,911
3. Jhunjhunwala Rakesh and Rekha 5.48% 3,975,000

As at December 31, 2019

Name of the shareholder % holding in the Nos.
class
Equity shares of Rupee 1 each fully paid
1. Group Holding of the S&P Global Inc.
a) S&P India, LLC 43.16% 31,209,480
b) S&P Global Asian Holdings Pte. Limited 15.94% 11,523,106
c) Standard & Poor’s International LLC 8.30% 6,000,000
2. Jhunjhunwala Rakesh and Rekha 6.64% 4,797,793
3. Life Insurance Corporation of India 5.48% 3,965,000

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

(f) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option scheme (ESOS) of the Company (Refer Note 45).

(g) Capital management

The Company is predominantly equity financed and continues to maintain adequate amount of liquidity to meet strategic and growth
objectives. The Company manages its capital to ensure that it will be able to continue as going concerns while maximising the return to
its stakeholders. The Company has ensured a balance between earning adequate returns on treasury asset and need to cover financial
and business risk. The Company actively monitors its portfolio and has a policy in place for investing surplus funds. Appropriate limits and
controls are in place to ensure that investments are made as per policy. The company has a overdraft facility with banks to support any
temporary funding requirements which has not been utilised as at December 31, 2020.

19. Explanation of reserves

a) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items
included in the general reserve will not be reclassified subsequently to the retained earnings.

b) Securities premium

The amount received in excess of face value of the equity shares is recognised in securities premium.

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Annual Report 2020

c) Retained earnings

Retained earnings represent the cumulative profits of the Company and the effects of measurements of defined benefit obligation.

d) Share-based payment reserve

The share-based payment reserve account is used to record the value of equity-settled share based payment transactions with
employees. The amounts recorded in this account are transferred to share premium upon exercise of stock options by employees.

e) Other comprehensive income (OCI)

Corporate Overview
Other comprehensive income includes fair value changes in equity instruments and hedge reserve through OCI.

f) Hedge reserve

Forward contracts are stated at fair value at each reporting date. Changes in the fair value of the forward contracts that are designated
and effective as hedges of future cash flows are recognized directly in OCI and accumulated under the hedging cash flow hedge
reserve, net of applicable deferred income taxes.

g) Capital redemption reserve

The Company has recognised Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in
capital redemption reserve is equal to nominal amount of the equity shares bought back.

h) Special Economic Zone (SEZ) reinvestment reserve

 he SEZ reinvestment reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Section 10 AA(1)(ii)
T
of the Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of
business in terms of Section 10 AA(2) of the Income Tax Act, 1961.

Statuory Reports
20. Other financial liabilities (non-current)
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Employee related payables 499 489
Lease liability (Refer Note 39) 7,397 -
Sundry deposits - 48
Total 7,896 537

21. Provisions (Non-current)

(Rupees in lakhs)
As at As at

Financial Statements
Particulars
December 31, 2020 December 31, 2019
Gratuity (Refer Note 40) 1,688 1,358
Total 1,688 1,358

22. Trade payables (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Total outstanding dues of micro enterprises and small enterprises (as per intimation 9 3
received from suppliers)
Total outstanding dues of creditors other than micro enterprises and small enterprises 5,486 6,755
Total 5,495 6,758

209
CRISIL Limited

Standalone Financial Statements

22.1 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 is provided as under

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
-Principal amount remaining unpaid, but not due 9 3
-Interest due thereon as at year end - -
-Interest paid by the Company in terms of Section 16 of Micro, Small and Medium Enterprises - -
Development Act, 2006 along with the amount of the payment made to the supplier beyond
the appointed day during the year
-Interest due and payable for the period of delay in making payment (which have been paid - -
but beyond the appointed day during the year) but without adding the interest specified
under Micro, Small and Medium Enterprises Development Act, 2006
-Interest accrued and remaining unpaid as at year end - -
-Further interest remaining due and payable even in the succeeding years, until such date - -
when the interest dues as above are actually paid to the small enterprise

The above information has been determined to the extent such parties could be identified on the basis of the information available with
the Company regarding the status its suppliers.

23. Other financial liabilities (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Employee related payables 6,622 7,903
Lease liability (Refer Note 39) 3,668 -
Payable to CRISIL Ratings Limited on account of transfer of business (Refer Note 37) 27,619 -
Unpaid dividend (Investor education and protection fund will be credited as and when due) 76 75
Sundry deposit 48 75
Total 38,033 8,053

24. Provisions (Current)

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Compensated absences (Refer Note 40) 4,951 4,920
Gratuity (Refer Note 40) 606 767
Total 5,557 5,687

25. Other current liabilities

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Statutory liabilities 2,079 2,253
Advance received from customer (Refer Note 25.1) 191 382
Unearned revenue (Refer Note 25.1) 3,458 10,285
Total 5,728 12,920

25.1 The balance lying in ‘Unearned revenue’ and ‘Advance received from customer’ as at December 31, 2019 is fully recognised as revenue
during the current year.

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Annual Report 2020

26. Income from operations

(Rupees in lakhs)
Year ended Year ended
Particulars

Corporate Overview
December 31, 2020 December 31, 2019
Ratings services 21,709 20,514
Research services 67,169 63,387
Total 88,878 83,901

26.1 The Company disaggregates revenue from contracts with customers by nature of services which has been described above. Further,
disaggregation of revenue by geographical region is as under :

(Rupees in lakhs)
Year ended Year ended
Geographical region
December 31, 2020 December 31, 2019
India 12,905 15,509
Europe 25,893 24,654
North America 41,730 34,822
Rest of the world 8,350 8,916
Total 88,878 83,901

Statuory Reports
26.2 The Company has applied practical expedient and has not disclosed information about remaining performance obligations in contracts
where the original contract duration is one year or less or where the entity has right to consideration that corresponds directly with the
value of entity’s performance completed to date.

27. Other income

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Interest on :
- Income tax refund - 361
- Bank deposits 46 30
- Loan to subsidiaries 811 10

Financial Statements
- Financial assets carried at amortized cost 249 227
Grant income (Refer Note 47) 2,649 2,025
Profit on sale of property, plant and equipment - 39
Dividend on investments (Refer Note 37) 441 5,485
Foreign exchange gain (net) 1,542 374
Profit on sale of current investments 698 836
Profit on fair valuation of current investments 252 532
Excess provision written back 395 78
Support and management fees 3,116 2,959
Miscellaneous income 196 25
Total 10,395 12,981

28. Employee benefits expenses

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Salaries, wages and bonus 41,245 39,707
Share based payment to employees 76 220
Contribution to provident and other funds 1,327 1,346
Contribution to gratuity fund (Refer Note 40) 666 615
Staff training and welfare expenses 999 1,491
Less : Recoveries from subsidiaries towards overhead allocated (679) (550)
Total 43,634 42,829

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CRISIL Limited

Standalone Financial Statements

29. Finance cost
(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Interest expense on bank overdraft 3 -
Interest on lease liability (Refer note 39) 842 -
Reimbursement of interest on lease liability recovered from subsidiaries (151) -
Total 694 -

30. Depreciation and amortisation

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Depreciation and amortisation on tangible, intangible and right of use assets (Refer Notes 7,473 2,626
3A, 3B and 4)
Less: Depreciation allocated to discontinuing operations - (167)
Less: Reimbursement of common depreciation recovered from subsidiaries (905) (63)
Total 6,568 2,396

31. Other expenses

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Repairs and maintenance - buildings 1,482 1,620
Repairs and maintenance - others 630 749
Electricity 493 866
Communication expenses 906 686
Insurance 119 57
Rent (Refer Note 39) 128 4,364
Rates and taxes 219 12
Printing and stationery 64 115
Conveyance and travelling 741 2,239
Books and periodicals 791 738
Vehicle expenses 2 3
Remuneration to non-whole time directors 161 157
Business promotion and advertisement 37 25
Professional fees (Refer Note 37) 19,743 19,268
Associate service fee 2,282 2,257
Software purchase and maintenance expenses 1,215 911
Provision for doubtful deposits 28 3
Provision for doubtful debts / bad debts 140 -
Loss on sale of property, plant and equipment 1 -
Corporate social responsibility (CSR) expenses (Refer Note 43) 774 761
Donation (Refer Note 37) 84 328
Auditors’ remuneration (Refer Note 35) 65 66
Recruitment expenses 197 251
Miscellaneous expenses 352 297
Less : Overhead allocated to discontinued operations - (2,785)
Less : Recoveries from subsidiaries towards overhead allocated (4,110) (1,049)
Total 26,544 31,939

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32. Financial risk management

The Company is exposed to various risks in relation to financial instruments. The Company’s financial assets and liabilities by category are
summarised in Note 33. The main types of risks are market risk (foreign currency exchange rate risk and price risk), business and credit
risks and liquidity risk. The Company has in place a robust risk management policy with overall governance and oversight from the Audit
Committee and Board of Directors. Risk assessment is conducted periodically and the Company has a mechanism to identify, assess,
mitigate and monitor various risks to key business objectives.

The policies for managing specific risk are summarized below:

Corporate Overview
32.1 Market risk

 arket risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market price.
M
Such changes may result from changes in foreign currency exchange rates, interest rate, price and other market changes. The Company’s
exposure to market risk is mainly due to foreign exchange rates and price risk.

Foreign currency exchange rate risk

The Company’s exposure to market risk includes changes in foreign exchange rates. Most of the Company’s transactions are carried out in
INR. Exposures to currency exchange rates arise from the Company’s overseas operations, which are primarily denominated in US dollars
(USD), EURO and Pounds Sterling (GBP). As of December 31, 2020 and December 31, 2019, the Company has entered into foreign exchange
forward contracts to hedge the effect of adverse fluctuations in foreign currency exchange rates. The details in respect of the outstanding
foreign exchange forward contracts are given. (Refer Note 33.2)

Following is the currency profile of non-derivative financial assets and financial liabilities:

As at December 31, 2020

Statuory Reports
Particulars (Foreign Currency in ‘000) (Rupees in lakhs)
Financial assets Financial liabilities Financial assets Financial liabilities
USD 27,849 1,682 20,446 1,235
GBP 2,711 - 2,687 -
EURO 1,148 - 1,030 -
Others 362 1,907 142 324

As at December 31, 2019

Particulars (Foreign Currency in ‘000) (Rupees in lakhs)
Financial assets Financial liabilities Financial assets Financial liabilities
USD 19,717 3,363 14,070 2,400

Financial Statements
GBP 2,786 - 2,599 -
EURO 679 12 541 9
Others 1,695 2,839 891 371

For the year ended December 31, 2020, every 5% increase/decrease of the respective foreign currencies compared to functional currency
of the Company would impact operating margins by Rupees 1,137 lakhs (+/-6.08 %). For the year ended December 31, 2019, operating
margins would increase/decrease by Rupees 766 lakhs (+/-2.79%). Exposure to foreign currency exchange rate vary during the year
depending upon the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Company’s
exposure to currency risk.

Price risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market. The Company has adopted disciplined practices including position sizing, diversification, valuation, loss
prevention, due diligence, and exit strategies in order to mitigate losses.

The Company is exposed to price risk arising mainly from investments in mutual funds recognized at FVTPL. The details of such investment
are given under Note 5. If the prices had been higher/lower by 5% from the market prices existing as at the reporting date, profit would
increase/decrease by Rupees 1,465 lakhs and Rupees 1,261 lakhs for the year ended December 31, 2020 and for the year ended December
31, 2019 respectively.

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Standalone Financial Statements

The Company is also exposed to price risk arising mainly from investments in equity instruments recognized at FVTOCI. The details of such
investment are given under Note 5. If the equity prices had been higher/lower by 5% from the market prices existing as at the reporting
date, OCI for the year ended December 31, 2020 would increase/decrease by Rupees 690 lakhs and Rupees 838 lakhs for the year ended
December 31, 2019.

32.2 Liquidity risk

 iquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
L
are settled by delivering cash or another financial asset. For the Company, liquidity risk arises from obligations on account of financial
liabilities - trade payables and other financial liabilities.
Liquidity risk management

The Company continues to maintain adequate amount of liquidity/treasury to meet strategic and growth objectives. The Company has
ensured a balance between earning adequate returns on liquidity/treasury assets and the need to cover financial and business risks. The
Company’s treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and
policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through
rolling forecasts on the basis of expected cash flows. The treasury position of the Company is given below:
Financial assets maturing within one year:
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Trade receivables 11,723 15,343
Cash and cash equivalents 9,775 7,127
Other bank balances 168 167
Loans 6,685 715
Investments in mutual funds 29,298 25,225
Others 10,387 3,670
Total 68,036 52,247

Financial liabilities maturing within and after one year:

(Rupees in lakhs)
As at December 31, 2020 As at December 31, 2019
Particulars
within one year after one year within one year after one year
Trade payables 5,495 - 6,758 -
Others 38,033 7,896 8,053 537
Total 43,528 7,896 14,811 537

32.3 Business and credit risks

To mitigate the risk arising from high dependence on any one business for revenues, the Company has adopted a strategy of diversifying in
new products/services and into different business segments. 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.
Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The
Company is exposed to this risk for receivables from customers.
 o manage credit risk, the Company periodically assesses the financial reliability of customers and other counterparties, taking into
T
account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual
risk limits are set accordingly. The Company uses a provision margin to compute the expected credit loss allowance for trade receivable.
Trade receivables are monitored on periodic basis for any non-recoverability of the dues. Bank balances are held with only high rated
banks.
(Rupees in lakhs)
As at As at
Receivables
December 31, 2020 December 31, 2019
<= 6 months 11,653 15,888
> 6 months but <= 1 year 508 391
> 1 year 52 72
Provision for doubtful receivables (490) (1,008)

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33. Financial Instruments

The carrying value and fair value of financial instruments by categories as at December 31, 2020 are as follows:
(Rupees in lakhs)
Amortised Financial assets/ Financial assets/liabilities at Derivative Total Total
cost liabilities at FVTPL FVTOCI instruments carrying fair
Designated Mandatory Equity Mandatory in hedging value value
Particulars relationship
upon initial instrument
recognition designated upon
initial recognition

Corporate Overview
Assets
Investments
Quoted equity - - - 13,791 - - 13,791 13,791
investments
Unquoted equity - - - 3,237 - - 3,237 3,237
investments
Mutual funds - - 29,298 - - - 29,298 29,298
Cash and cash 9,775 - - - - - 9,775 9,775
equivalents
Other bank balances 168 - - - - - 168 168
Trade receivables 11,723 - - - - - 11,723 11,723
Loans 9,002 - - - - - 9,002 9,002
Other financial assets 9,602 - - - - 846 10,448 10,448
Total 40,270 - 29,298 17,028 - 846 87,442 87,442
Liabilities

Statuory Reports
Trade payables 5,495 - - - - - 5,495 5,495
Other financial 45,929 - - - - - 45,929 45,929
liabilities
Total 51,424 - - - - - 51,424 51,424

The carrying value and fair value of financial instruments by categories as at December 31, 2019 are as follows:
(Rupees in lakhs)
Amortised Financial assets/ Financial assets/liabilities at Derivative Total Total
cost liabilities at FVTPL FVTOCI instruments carrying fair
Designated Mandatory Equity Mandatory in hedging value value
Particulars relationship
upon initial instrument
recognition designated upon
initial recognition
Assets
Investments

Financial Statements
Quoted equity - - - 16,756 - - 16,756 16,756
investments
Unquoted equity - - - 3,324 - - 3,324 3,324
investments
Mutual funds - - 25,225 - - - 25,225 25,225
Cash and cash 7,127 - - - - - 7,127 7,127
equivalents
Other bank balances 167 - - - - - 167 167
Trade receivables 15,343 - - - - - 15,343 15,343
Loans 3,965 - - - - - 3,965 3,965
Other financial assets 3,672 - - - - 49 3,721 3,721
Total 30,274 - 25,225 20,080 - 49 75,628 75,628
Liabilities
Trade payables 6,758 - - - - - 6,758 6,758
Other financial 8,590 - - - - - 8,590 8,590
liabilities
Total 15,348 - - - - - 15,348 15,348

33.1 Fair value hierarchy

 or financial reporting purpose, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to
F
the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are
described as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

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Standalone Financial Statements

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).

Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

 he following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value as at December
T
31, 2020 and December 31, 2019.

(Rupees in lakhs)
As at December 31, 2020 As at December 31, 2019
Particulars
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets measured at fair value:
A Investments at FVTPL
1. Mutual Funds 29,298 - - 25,225 - -
B Investments at FVTOCI
1. Quoted equity shares 13,791 - - 16,756 - -
2. Unquoted equity shares - - 3,237 - - 3,324
C Forward contracts receivable - 846 - - 49 -

33.2 Derivative financial instruments and hedging activity

The Company’s risk management policy is to hedge substantial amount of forecast transactions for each of the major currencies presently
US$, GBP £ and Euro €. The hedge limits are governed by the risk management policy. The Company uses forward foreign exchange
contracts to mitigate exchange rate exposure arising from forecast sales in foreign currencies. All forward exchange contracts have been
designated as hedging instruments in cash flow hedges in accordance with Ind AS 109. Details of currency hedge and forward contract
value are as under:

As at December 31, 2020

Currency Number Nominal Carrying Maturity date Weighted Changes in Change in the
of value amount of average fair value hedging item used
contracts (Foreign hedging strike of hedging as the basis for
Type of Hedge
currency in instrument price/rate instrument recognising hedge
‘000) (Rupees in (Rupees in effectiveness
lakhs) lakhs) (Rupees in lakhs)
Cash flow hedge
i) Foreign USD 20 39,791 30,796 Jan - Dec-21 77.40 974 (974)
exchange forward GBP 11 6,080 6,005 Jan - Dec-21 98.76 (219) 219
contracts EUR 12 4,212 3,763 Jan - Dec-21 89.34 (128) 128
Receivables hedge
i) Foreign USD 1 6,250 4,896 6-Jul-21 78.34 219 (219)
exchange forward
contracts

As at December 31, 2019

Currency Number Nominal Carrying Maturity date Weighted Changes in Change in the
of value amount of average fair value hedging item used
contracts (Foreign hedging strike of hedging as the basis for
Type of Hedge
currency in instrument price/rate instrument recognising hedge
‘000) (Rupees in (Rupees in effectiveness
lakhs) lakhs) (Rupees in lakhs)
Cash flow hedge
i) Foreign USD 24 51,415 37,692 Jan - Dec-20 73.31 155 (155)
exchange forward GBP 11 5,969 5,650 Jan - Dec-20 94.66 (163) 163
contracts EUR 12 3,459 2,918 Jan - Dec-20 84.36 57 (57)

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Movement in cash flow hedging reserve (Rupees in lakhs)

Particulars Foreign exchange forward contract
As at January 1, 2019 227
Add: Changes in fair value of effective portion of outstanding forcasted cash flow hedge 840
Less: Amounts reclassified to profit or loss (1,133)
Less: Tax relating to above (net) 102
As at January 1, 2020 36
Add: Changes in fair value of effective portion of outstanding forcasted cash flow hedge 161
Add: Amounts reclassified to profit or loss 418

Corporate Overview
Less: Tax relating to above (net) (146)
As at December 31, 2020 469

The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. Hedge is broadly classified as
revenue hedge and receivable hedge.

Revenue hedge

For forecasted revenue transaction, the Company will adopt cash flow hedge and record mark to market through OCI. Effective hedge is
routed through OCI in the balance sheet and the ineffective portion is immediately routed through the statement of profit and loss.

Receivable hedge

 he ineffective portion of cash flow hedges are recognized in the statement of profit and loss and reported within foreign exchange gains/
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(losses).

Details of unhedged foreign exposure

Statuory Reports
As at December 31, 2020
Currency
(Foreign Currency in ‘000) (Rupees in lakhs)
Assets Liabilities Assets Liabilities
Monetary
USD 27,849 1,682 20,446 1,235
GBP 2,711 - 2,687 -
EUR 1,148 - 1,030 -
Others 362 1,907 142 324
Investment
USD 430 - 225 -
GBP 14,240 - 11,390 -
Others 796 - 105 -

Financial Statements
As at December 31, 2019
Currency
(Foreign Currency in ‘000) (Rupees in lakhs)
Assets Liabilities Assets Liabilities
Monetary
USD 19,717 3,363 14,070 2,400
GBP 2,786 - 2,599 -
EUR 679 12 541 9
Others 1,695 2,839 891 371
Investment
USD 430 - 225 -
GBP 14,240 - 11,390 -
Others 796 - 105 -

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CRISIL Limited

Standalone Financial Statements

34. Details of contingent liabilities and capital commitments are as under:
(Rupees in lakhs)
As at As at
Receivables
December 31, 2020 December 31, 2019
A. Contingent liabilities
1. Bank guarantee in the normal course of business 75 132
2. Disputed income tax, sales tax, servide tax and GST demand:
(i) Pending before appellate authorities in respect of which the Company is in appeal 8,544 8,158
(ii) Decided in Company’s favour by appellate authorities and department is in further appeal 1,146 1,146
3. Provident fund
Based on the judgement by the Honorable Supreme Court dated 28 February 2019, past
provident fund liability, is not determinable at present, in view of uncertainty on the
applicability of the judgement to the Company with respect to timing and the components
of its compensation structure. In absence of further clarification, the Company has been
legally advised to await further developments in this matter to reasonably assess the
implications on its financial statements, if any.
The Company periodically receives notices and inquiries from income tax authorities
related to the Company’s operations in the jurisdictions of operations in. The Company has
evaluated these notices and inquiries and has concluded that any consequent income tax
claims or demands by income tax authorities will not succeed on ultimate resolution other
than what has been provided or disclosed herein.
9,765 9,346
B. Capital commitment
Estimated amount of contracts (net of advances) remaining to be executed on capital 189 138
account and not provided for. Management believes that the ultimate outcome of above
matters will not have a material adverse impact on its financial position, results of
operations and cash flows. In respect of above matters, future cash outflows in respect
of contingent liabilities are determinable only on receipt of judgments pending at various
authorities.
Total 9,954 9,574

35. Auditors’ remuneration includes :

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Audit fees (including limited review fees) 52 52
In any other matter:
Certification work 7 10
Out of pocket expenses 6 4
Total 65 66

36. Segment reporting

In accordance with Paragraph 3 of Indian Accounting Standard (Ind AS) 108 - Operating Segments, segment information has been given
in the consolidated financial statements of the Company, and therefore, no separate disclosure on segment Information is given in these
standalone financial statements.

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37. List of related parties

Parties Relationship
Related parties where control exists
S&P Global Inc. Ultimate Holding Company
CRISIL Risk and Infrastructure Solutions Limited Subsidiary
(‘CRIS’)
CRISIL Irevna UK Limited Subsidiary
CRISIL Irevna US LLC Subsidiary of CRISIL Irevna UK Limited

Corporate Overview
CRISIL Irevna Poland [Link].o Subsidiary of CRISIL Irevna UK Limited
CRISIL Irevna Argentina S.A. Subsidiary
CRISIL Irevna Information & Technology (Hangzhou) Subsidiary
Co. Limited
Coalition Development Limited Subsidiary of CRISIL Irevna UK Limited
Coalition Development Singapore Pte Limited Subsidiary of Coalition Development Limited
Pragmatix Services Private Limited Subsidiary
CRISIL Ratings Limited (Refer note 46) Subsidiary (with effect from June 3, 2019)
CRISIL Irevna Australia Pty Ltd Subsidiary of CRISIL Irevna UK Limited (with effect from August 28,2020)
Greenwich Associates LLC Subsidiary of CRISIL Irevna US LLC (with effect from February 26, 2020)
Greenwich Associates International, LLC Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020 and
till December 22, 2020)
Greenwich Associates UK (Holdings) Limited Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020)
Greenwich Associates Singapore PTE. LTD. Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020)
Greenwich Associates Japan K.K. Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020)
Greenwich Associates Canada ULC Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020)

Statuory Reports
Greenwich Associates UK Limited Subsidiary of Greenwich Associates LLC (with effect from February 26, 2020)
CRISIL Foundation Controlled Trust
Other related parties (to the extent where
transaction have taken place)
S&P India, LLC Fellow subsidiary
Standard & Poor’s International LLC Fellow subsidiary
Standard & Poor’s South Asia Services Private Fellow subsidiary
Limited
S&P Global Asian Holdings Pte. Limited Fellow subsidiary
S&P Global Canada Corp. Fellow subsidiary
S&P Global UK Limited Fellow subsidiary
S&P Capital IQ (India) Private Limited Fellow subsidiary
S&P Global Ratings Europe Limited Fellow subsidiary
Standard & Poor’s Financial Services, LLC Fellow subsidiary

Financial Statements
Standard & Poor’s Singapore Pte. Ltd. Fellow subsidiary
Standard & Poor’s Hong Kong Limited Fellow subsidiary
Standard & Poor’s (Australia) Pty. Ltd. Fellow subsidiary
Standard & Poor’s Global Ratings Japan Inc. Fellow subsidiary
S&P Global Market Intelligence LLC Fellow subsidiary
S&P Ratings (China) Co. Ltd Fellow subsidiary
Asia Index Private Limited Fellow subsidiary
Fabindia Overseas Private Limited Common Director
Key Management Personnel
Girish Paranjpe Independent Director
Vinita Bali Independent Director
M. Damodaran Independent Director
Shyamala Gopinath Independent Director (with effect from July 10, 2020)
Arundhati Bhattacharya Independent Director (upto April 15, 2020)
Ewout Steenbergen Director
Martin Fraenkel Director (with effect from April 18, 2019)
Martina Cheung Director (up to April 18, 2019)
John L Berisford Chairman
Ravinder Singhania Alternate Director (up to July 22, 2019)
Ashu Suyash * Managing Director and Chief Executive Officer
Amish Mehta * Chief Operating Officer
Sanjay Chakravarti * Chief Financial Officer
Minal Bhosale * Company Secretary
* Related parties as per Companies Act, 2013

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CRISIL Limited

Standalone Financial Statements

Transactions with related parties

(Rupees in lakhs)

As at and for the As at and for the

Nature of transaction / year ended year ended
Name of the related party
outstanding balances December 31, December 31,
2020 2019
S&P Global UK Limited Professional services rendered 690 362
Amount receivable 220 216
S&P Global Canada Corp. Professional services rendered 161 178
Reimbursement of expenses received 1 -
Amount receivable 15 40
S&P Global Ratings Europe Limited Professional services rendered 4,516 4,639
Amount receivable 830 622
Standard & Poor’s Financial Services, LLC Professional services rendered 13,354 11,766
Reimbursement of expenses received 22 -
Amount receivable 23 884
Standard & Poor’s Singapore Pte. Ltd. Professional services rendered 656 714
Amount receivable 46 55
Standard & Poor’s Hong Kong Limited Professional services rendered 1,221 876
Amount receivable 326 147
Standard & Poor’s (Australia) Pty. Ltd. Professional services rendered 608 470
Amount receivable 55 40
Standard & Poor’s Global Ratings Japan Inc. Professional services rendered 289 235
Amount receivable 25 19
Standard & Poor’s South Asia Services Private Reimbursement of expenses received 1,232 1,008
Limited Amount receivable 909 196
S&P Capital IQ (India) Private Limited Reimbursement of expenses received 22 92
Amount receivable -* 17
S&P Global Market Intelligence LLC Subscription fees paid 143 81
Professional services rendered 2 14
Amount payable - 40
Amount receivable - 14
S&P Ratings (China) Co. Ltd Professional services rendered - 11
S&P India, LLC Dividend paid 9,987 9,363
Share capital outstanding 312 312
Standard & Poor’s International LLC Dividend paid 1,920 1,800
Share capital outstanding 60 60
Reimbursement of expenses received -* -
Amount receivable -* -
S&P Global Asian Holdings Pte. Limited Dividend paid 3,687 3,457
Share capital outstanding 115 115
S&P Global Inc. Professional services rendered 2 2
Asia Index Private Limited Reimbursement of expenses paid 4 2
Fabindia Overseas Private Limited Professional services rendered - 2
CRISIL Risk and Infrastructure Solutions Professional services rendered -* -*
Limited
Support and management fee - 72
Expenses recovered 400 583
Share of overhead expenses received 1,127 1,000
Reimbursement of expense received (ESOS) 13 9
Transfer of employee related liabilities 11 98
Sale of property, plant and equipment - 15
Purchase of property, plant and equipment 1 2
Loan given 750 150
Loan repaid 300 600
Loan outstanding 500 50
Interest on loan received 40 8
Interest receivable 17 1

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Annual Report 2020

As at and for the As at and for the

Nature of transaction / year ended year ended
Name of the related party
outstanding balances December 31, December 31,
2020 2019
Investment outstanding 707 707
Amount receivable 454 386
CRISIL Irevna UK Limited Professional services rendered 16,357 16,438
Support and management fee 398 227
Support services for product development 203 -

Corporate Overview
Reimbursement of expenses received 30 24
Reimbursement of expense received (ESOS) 11 18
Dividend income - 4,306
Loan given 14,991 -
Loan repaid 10,925 -
Loan outstanding 4,589 -
Interest income 770 -
Interest amount receivable 141 -
Investment outstanding 11,585 11,585
Amount receivable 2,236 1,319
CRISIL Irevna US LLC Professional services rendered 1,381 5,251
Billing done on behalf of Company 6,482 16,377
Professional fees paid 6,493 5,904
Support and management fee 366 510
Reimbursement of expenses received 88 12
Sale of property, plant and equipment 2 -

Statuory Reports
Amount received on behalf of the Company 2,201 -
Reimbursement of expense received (ESOS) (7) 32
Amount receivable (net) 184 2,924
CRISIL Irevna Argentina, S.A. Professional fees paid 5,039 4,910
Investment outstanding 147 147
Amount payable 404 376
CRISIL Irevna Poland [Link].o Professional fees paid 1,424 1,537
Reimbursement of expenses received - 4
Reimbursement of expense received (ESOS) - -*
Amount payable 264 161
CRISIL Irevna Information & Technology Dividend income - 402
(Hangzhou) Co. Limited Professional fees paid 1,789 2,101
Reimbursement of expenses received - 1
Sale of property, plant and equipment - 1
Investment outstanding 244 244

Financial Statements
Amount payable 167 161
Amount receivable - 2
Coalition Development Limited Professional services rendered 1,423 1,253
Support and management fee 1,098 1,092
Reimbursement of expense received (ESOS) 5 310
Reimbursement of expense received - 1
Amount receivable - 568
Amount payable 191 -
Coalition Development Singapore Pte Limited Professional services rendered 4,151 4,319
Reimbursement of expense received (ESOS) 18 26
Professional fees paid 354 173
Amount receivable 128 888
Amount payable 95 16
CRISIL Foundation Donation 850 1,070
Reimbursement of expenses received 14 52
Amount receivable 4 -
Pragmatix Services Private Limited Support and management fee - 72
Professional fees paid - 2
Expenses recovered 97 258
Share of overhead expenses received 532 599
Reimbursement of expense received (ESOS) 50 62
Transfer of employee related liabilities 6 7
Purchase of property, plant and equipment -* -
Sale of property, plant and equipment - 4

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CRISIL Limited

Standalone Financial Statements

As at and for the As at and for the
Nature of transaction / year ended year ended
Name of the related party
outstanding balances December 31, December 31,
2020 2019
Loan given - 485
Loan repaid 275 210
Interest on loan received 1 1
Loan outstanding - 275
Investment outstanding 5,600 5,600
Interest receivable - -*
Amount receivable (net) 396 28
CRISIL Ratings Limited # Investment made during the year 2,600 10
Net assets tansferred to CRISIL Ratings 5,170 -
Limited
Reimbursement of expense received 30 -
Reimbursement of expense received (ESOS) 83 -
Share of overhead expenses received 3,070 -
Expenses recovered 856 -
Amount receivable 5,170 -
Amount payable (net) 27,619 -
Greenwich Associates LLC Professional services rendered 208 -
Professional fees paid 63 -
Amount receivable 65 -
Amount payable 62 -
Girish Paranjpe Sitting fees and commission 44 40
Shyamala Gopinath Sitting fees and commission 19 -
Arundhati Bhattacharya Sitting fees and commission 11 35
Vinita Bali Sitting fees and commission 43 41
M. Damodaran Sitting fees and commission 44 41
Ashu Suyash** Remuneration 633 559
Options granted (nos.) - 21,056
Amish Mehta** Remuneration 399 364
Options granted (nos.) - 11,633
Sanjay Chakravarti** Remuneration 172 155
Options granted (nos.) - 5,488
Minal Bhosale** Remuneration 96 91
Options granted (nos.) - 1,039

-* in amounts column denote amount less than Rupees 50,000

**Note: As the future liability for retirement and other employee benefits is provided on an actuarial basis for the Company as a whole, the
amount pertaining to key managerial persons is not included above.

 As per the NCLT Order, rating business has been demerged from the Company with effect from the appointed date i.e 1 January 2020.
#
Therefore, all current account transaction between January 1, 2020 to the date on which the scheme becoming effective have not been
shown as related party transactions as these were done in trust and on behalf of CRISIL Ratings Limited (Refer Note 46).

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Standalone Financial Statements

38. The Company has provided following loans pursuant to Section 186 of the Companies Act, 2013
and disclosure under SEBI (LODR) Regulations, 2016:
(Rupees in lakhs)

Corporate Overview
Name of the entity Relationship Purpose for Particulars of loans Amount Amount Maximum
which the outstanding outstanding amount
loan to be as at as at outstanding
utilised December 31, December during the
2020 31, 2019 year
CRISIL Risk and 100% Operational The loan is repayable on 500 50 600
Infrastructure Solutions subsidiary demand. These loans carry
Limited (CRIS) interest @ 12.5% per annum.
Pragmatix Services 100% Operational The loan is repayable on demand. - 275 275
Private Limited (PSPL) subsidiary These loans carry interest as per
ICICI Bank Limited’s six months
MCLR rate.
CRISIL Irevna UK Limited 100% Acquisition Loan given as an unsecured 4,589 - 15,719
subsidiary loan for 10 years carrying an
interest @ 6.413% per annum
for financing acquisition.

For details of investments and advances provided to related parties Refer Note 37.

Statuory Reports
39. Leases
 he Company has adopted Ind AS 116 effective January 1, 2020, using the modified retrospective method and has applied the standard
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to its leases with the cumulative impact recognized on the date of initial application i.e. January 1, 2020. Accordingly, previous period
information has not been restated. The lease expenses which were recognized as rent expense in previous periods is now recognized as
depreciation expense for the right-of-use asset and finance cost for interest accrued on lease liability. The Company has elected not to
recognize right-to-use assets and lease liabilities for short term leases (lease term of 12 months or less) and leases of low-value and has
recognized the lease payments for such leases as an expense over the lease term. The transition has resulted in recognition of Right-
of-Use (ROU) assets of Rupees 15,580 lakhs and Lease Liability of Rupees 15,105 lakhs in books. The cumulative effect of applying the
standard resulted in Rupees 690 lakhs being debited to retained earnings (net of taxes). The adoption of this standard did not have any
significant impact on the profit after tax and earnings per share.

39.1The following is the movement in lease liabilities:

Financial Statements
(Rupees in lakhs)
Year ended
Particulars
December 31, 2020
Balance as at January 1, 2020 -
Additions (transitional impact on adoption of Ind AS 116) 15,105
Additions during the year 1,053
Add: Interest recognised during the year 842
Less: Waiver of lease rent (25)
Less: Change in lease term (1,231)
Payment made (4,679)
Balance as at December 31, 2020 11,065

39.2 The table below provides details regarding the contractual maturities of lease liabilities as at December 31, 2020 on an undiscounted
basis:

(Rupees in lakhs)
Particulars Year ended
December 31, 2020
Future minimum lease payments:
Not later than one year 4,072
Later than one year and not later than five years 10,053
Later than five years 238
Total 14,363

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CRISIL Limited

Standalone Financial Statements

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilites as and when they fall due.

Rental expense recorded for short term leases as per Ind AS 16 was Rupees 128 lakhs for the year.

 ffective January 1, 2020, the Company has adopted Ind AS 116, Leases and has recognised interest on lease liability of Rupees 842 lakhs
E
under finance costs.

 he aggregate depreciation on ROU assets has been included under depreciation expense in the Statement of Profit and Loss. (Refer note
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30)

40. Gratuity and other post employment benefits plans

I n accordance with the Payment of Gratuity Act, 1972, CRISIL provides for gratuity, a defined benefit retirement plan covering eligible
employees (completed continuous services of five years or more) of the Company. The Gratuity Plan provides a lump-sum payment to
vested employees at retirement, death, incapacitation or termination of employment at fifteen days salary of an amount based on the
respective employee’s salary and tenure of employment with the Company.

 he following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded
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status and amounts recognised in the balance sheet for the respective plans.

Net employee benefit expense recognised in statement of Profit and Loss and OCI:

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Current service cost 565 592
Interest cost on defined benefit obligation 105 104
Re-measurement - actuarial (gain)/loss (recognized in OCI) 410 201
Expected return on plan assets (recognized in OCI) (20) 13
Adjustment (4) 21
Less:Amount transferred to discontinued operations - (102)
Net gratuity benefit expense 1,056 829

Balance Sheet:
Details of provision for gratuity benefit (Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Present value of funded obligations 4,620 4,445
Fair value of plan assets (2,326) (2,320)
Net liability 2,294 2,125

Changes in the present value of the defined benefit obligation are as follows:
(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening defined benefit obligation 4,445 3,965
Current service cost 565 592
Interest cost 246 275
Acquisitions/ transfer (credit)/ cost (669) 25
Actuarial (gain)/loss (28) (24)
Actuarial (gain)/loss (financial assumptions) 438 225
Benefits paid (377) (613)
Closing defined benefit obligation 4,620 4,445

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Annual Report 2020

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

(Rupees in lakhs)
As at As at
Particulars
December 31, 2020 December 31, 2019
Opening fair value of plan assets 2,320 2,008
Acquisition/ transfer adjustment (384) -
Expected return on plan assets - (13)
Interest (income) / expense on plan assets 141 171
Contribution by employer 606 767

Corporate Overview
Return on plan assets greater / (lesser) than discount rate 20 -
Benefits paid (377) (613)
Closing fair value of plan assets 2,326 2,320

The defined benefit obligation shall mature after December 31, 2020 as follows:

Particulars Rupees in lakhs

December 31, 2021 408
December 31, 2022 484
December 31, 2023 566
December 31, 2024 599
December 31, 2025 680
December 31, 2026 to December 31, 2030 3,718

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

Statuory Reports
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Investment with insurer 100% 100%

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:

Year ended Year ended

Particulars
December 31, 2020 December 31, 2019
Discount rate 5.70% 6.80%
Rate of return on plan assets 7.00% 7.50%

Financial Statements
Expected employee turnover
Service years Rates Rates
Service < 5 20.00% 20.00%
Service => 5 10.00% 10.00%
Increment 10% for First 4 years starting 10% for First 4 years starting
2020 2019
and 7% thereafter and 7% thereafter
Expected employer’s contribution next year (Rupees in lakhs) 606 767

Broad category of plan assets as per percentage of total plan assets of the gratuity

Year ended Year ended

Particulars
December 31, 2020 December 31, 2019
Government securities 81% 76%
Fixed deposit, debentures and bonds 13% 18%
Others 6% 6%
Total 100% 100%

The actuarial assumptions for the determination of defined benefit obligations are discount rate and salary escalation rate. The sensitivity
analysis below have been determined based on reasonably possible changes of the assumptios occuring at the end of the reporting
period, holding all other assumptions constant.

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CRISIL Limited

Standalone Financial Statements

Discount rate Rupees in lakhs
Effect on DBO due to 0.5% increase in discount rate (176)
Effect on DBO due to 0.5% decrease in discount rate 189

Salary escalation rate Rupees in lakhs

Effect on DBO due to 0.5% increase in salary escalation rate 155
Effect on DBO due to 0.5% decrease in salary escalation rate (151)

Other benefits

The Company has recognised the following amounts in the statement of profit and loss:  (Rupees in lakhs)

Year ended Year ended

Particulars
December 31, 2020 December 31, 2019
i. Contribution to provident fund 1,170 1,178
ii. Contribution to other funds 157 168

 he expenses for compensated absences have been recognised in the same manner as gratuity and a provision of Rupees 4,951 lakhs has
T
been made as at December 31, 2020 (Rupees 4,920 lakhs as at December 31, 2019).

41. Earning per share

The following reflects the profit and share data used in the basic and diluted Earning Per Share (EPS) computations:

(Rupees in lakhs)

Year ended Year ended

Particulars
December 31, 2020 December 31, 2019
Net profit for calculation of basic/diluted EPS
From continuing operations 16,672 13,551
From discontinued operations - 13,078

Year ended Year ended

Particulars December 31, 2020 December 31, 2019
(Nos.) (Nos.)
Weighted average number of equity shares in calculating basic EPS 72,494,072 72,243,688
Effect of dilution:
Add: weighted average stock options granted under ESOS 53,214 95,840
Weighted average number of equity shares in calculating diluted EPS 72,547,286 72,339,528

Year ended Year ended

Earnings per share : Nominal value of Rupee 1 December 31, 2020 December 31, 2019
(Rupees) (Rupees)
From continuing operations
Basic 23.00 18.76
Diluted (On account of ESOS, Refer note 45) 22.98 18.73
From discontinued operations
Basic - 18.10
Diluted (On account of ESOS, Refer note 45) - 18.08
From continuing and discontinued operations
Basic 23.00 36.86
Diluted (On account of ESOS, Refer note 45) 22.98 36.81

The following potential equity shares are anti-dilutive and therefor excluded from the weighted average number of equity
shares for the purpose of diluted EPS

Year ended Year ended

Particulars December 31, 2020 December 31, 2019
(Nos.) (Nos.)
Options to purchase equity shares had anti-dilutive effect 110,150 263,247

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Annual Report 2020

42. Dividend
Details of dividend paid on equity shares are as under:

(Rupees in lakhs)
Year ended Year ended
Particulars
December 31, 2020 December 31, 2019
Final dividend for the year 2019 (Previous year 2018) Rupees 13 per equity share 9,422 7,938
(Previous year Rupees 11 per share) of Rupee 1 each
Dividend distribution tax on final dividend - 1,632

Corporate Overview
Interim dividend for the year 2020 (Previous year 2019) Rupees 19 per equity share 13,781 13,735
(Previous year Rupees 19 per share) of Rupee 1 each
Dividend distribution tax on interim dividend - 1,857
Total 23,203 25,162

Proposed dividend

 he Board of Directors at its meeting held on February 11, 2021 have recommended a payment of final dividend of Rupees 14 per equity
T
share of face value of Rupee 1 each for the financial year ended December 31, 2020. The above is subject to approval at the ensuing Annual
General Meeting of the Company and hence is not recognised as a liability.

43. Corporate Social Responsibility (CSR) expenses for the year ended December 31, 2020 includes Rupees 774 lakhs (Previous year Rupees
761 lakhs) includes spend on various CSR schemes as prescribed under Section 135 of the Companies Act, 2013. The CSR amount based
on limits prescribed under the Companies Act, 2013 for the year was Rupees 728 lakhs (Previous year Rupees 733 lakhs). Key CSR activities
were “education and women empowerment – financial capability building” and “conservation of environment”.

44. The Company has considered internal and external information and has performed sensitivity analyses based on current estimates, in

Statuory Reports
assessing the recoverability of receivables, unbilled revenues, goodwill, intangible assets, other financial assets (including cash liquidity),
and the profitability of the company. Whilst the situation continues to be extremely dynamic, at present the company does not see any
material impact on the above. However, the actual impact of the pandemic on the company’s financial performance may differ from what
is estimated, and the company continues to monitor changes to future economic conditions.

45. Employee stock option scheme (“ESOS”)

 he Company has formulated an ESOS based on which employees are granted options to acquire the equity shares of
T
the Company that vests in a graded manner. The options are granted at the closing market price prevailing on the stock
exchange, immediately prior to the date of grant. Details of the ESOS granted are as under :

Details Date of grant No. of options Exercise price Graded vesting period : Weighted average
granted (Rupees) 1st Year 2nd Year 3rd Year price (Rupees)**
ESOS 2014 (1) 17-Apr-14 * 2,860,300 1,217.20 953,433 953,433 953,434 469.48

Financial Statements
ESOS 2014 (2) 01-Jun-15 * 71,507 2,101.10 23,835 23,835 23,837 708.36
ESOS 2012 (1) 16-Apr-12 903,150 1,060.00 180,630 361,260 361,260 320.59
ESOS 2012 (2) 16-Apr-12 5,125 1,060.00 5,125 - - 230.97
ESOS 2012 (3) 14-Feb-14 123,000 1,119.85 24,600 49,200 49,200 334.20
ESOS 2011 (1) 14-Feb-11 1,161,000 579.88 232,200 464,400 464,400 185.21
ESOS 2011 (2) 14-Feb-11 23,750 579.88 23,750 - - 149.41
ESOS 2011 (3) 3-Oct-14 33,000 1,985.95 6,600 13,200 13,200 583.69
ESOS 2011 (4) 25-Feb-15 22,000 2,025.20 4,400 8,800 8,800 515.78
ESOS 2011 (5) 16-Dec-16 194,200 2,180.85 38,840 77,680 77,680 621.74
ESOS 2012 (4) 16-Dec-16 47,800 2,180.85 9,560 19,120 19,120 621.74
ESOS 2014 (3) 16-Dec-16* 82,100 2,180.85 27,093 27,093 27,914 734.46
ESOS 2014 (4) 09-Mar-17* 13,400 1,997.35 4,422 4,422 4,556 680.28
ESOS 2014 (5) 17-Jul-17* 25,000 1,956.55 8,250 8,250 8,500 626.51
ESOS 2014 (6) 08-Jan-18* 8,000 1,919.25 2,666 2,666 2,667 623.48
ESOS 2014 (7) 24-Jan-18* 238,970 1,969.45 79,656 79,656 79,658 651.23
ESOS 2014 (8) 4-Apr-18 164,457 1,841.35 54,818 54,818 54,820 410.12
ESOS 2014 (9) 16-Apr-19 226,155 1,568.85 75,384 75,384 75,387 332.35
* At the end of 3rd, 4th & 5th year in equal tranches
**Weighted average price of options as per Black -Scholes Option Pricing model at the grant date.

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CRISIL Limited

Standalone Financial Statements

 he Company had three schemes under which options have been granted in the past. Under ESOS 2011, ESOS 2012, ESOS 2014 (8) and
T
ESOS 2014 (9) option vest over three years at each of the anniversaries. ESOS 2011 and ESOS 2012 are exercisable within three years from
the date of vesting and are settled in equity on exercise. ESOS 2014 (8) and ESOS 2014 (9) are exercisable within two years from the date
of vesting and are settled in equity on exercise.

 nder ESOS 2014 (1-7) options vest over five years starting from third anniversary of the grant. Options are exercisable within two years
U
from the date of vesting and are settled in equity on exercise.

The summary for each scheme as at December 31, 2020

ESOS - 2011 ESOS - 2012 ESOS - 2014

Particulars Number of Wtd. avg. Number of Wtd. avg. Number of Wtd. avg.
options exercise price options exercise price options exercise price
(Rupees) (Rupees) (Rupees)
Outstanding at the beginning of the 207,400 2,168.45 74,030 1,804.92 1,112,938 1,563.03
year
Granted during the year - N.A. - N.A. - N.A.
Forfeited during the year - N.A. 15,030 1,684.59 110,596 1,812.45
Exercised during the year - N.A. 19,200 1,119.85 269,764 1,226.04
Expired during the year 52,040 2,131.41 7,960 2,180.85 91,113 1,446.12
Outstanding at the end of the year 155,360 2,180.85 31,840 2,180.85 641,465 1,678.36
Exercisable at the end of the year 155,360 2,180.85 31,840 2,180.85 392,868 1,622.82

The summary for each scheme as at December 31, 2019

ESOS - 2011 ESOS - 2012 ESOS - 2014

Particulars Wtd. avg. Wtd. avg. Wtd. avg.
Number of Number of Number of
exercise price exercise price exercise price
options options options
(Rupees) (Rupees) (Rupees)
Outstanding at the beginning of the 220,600 2,157.53 74,030 1,804.92 1,356,879 1,547.24
year
Granted during the year - N.A. - N.A. 226,155 1,568.85
Forfeited during the year - N.A. - N.A. 246,193 1,795.83
Exercised during the year - N.A. - N.A. 188,544 1,217.20
Expired during the year 13,200 1,985.95 - N.A. 35,359 1,217.20
Outstanding at the end of the year 207,400 2,168.45 74,030 1,804.92 1,112,938 1,563.03
Exercisable at the end of the year 207,400 2,168.45 74,030 1,804.92 607,682 1,367.84

Date Wtd. avg. exercise price

Particulars
(Rupees)
Weighted average share price at the date of exercise. February 11, 2020 1,793.60
April 21, 2020 1,366.43
July 21, 2020 1,571.67
October 20, 2020 1,762.51

Range of exercise prices Wtd. avg. remaining

Particulars
Rupees contractual life
Range of exercise prices and weighted average remaining contractual life. 1119.85 to 1217.25 106 days
1568.85 to 1,997.35 1110 days
2,101.10 to 2,180.85 744 days

Cash inflow on exercise of options at the weighted average share price at the date of exercise.

Year ended Year ended

Particulars December 31, 2020 December 31, 2019
Numbers Rupees in lakhs Numbers Rupees in lakhs
Exercised during the year 288,964 3,522 188,544 2,295
Total 288,964 3,522 188,544 2,295
There are no cash settled plans implemented by the Company and hence there is no further liability booked in the books.

228
Annual Report 2020

The estimates of future cash inflow that may be received upon exercise of options.

Year ended Year ended

Particulars December 31, 2020 December 31, 2019
Numbers Rupees in lakhs Numbers Rupees in lakhs
Not later than two years 814,380 14,569 1,248,464 20,645
Later than two years & not later than five years 14,285 280 145,904 2,584
Total 828,665 14,849 1,394,368 23,229

Corporate Overview
46. Securities and Exchange Board of India (SEBI) notifications dated May 30, 2018 and September 19, 2018, under the SEBI (Credit Rating
Agencies) Regulations, 1999, have mandated segregation of Ratings and Non-Ratings businesses of Credit Rating Agencies. Pursuant to,
and in order to comply with these notifications, CRISIL’s Board of Directors approved transfer of the Ratings business to CRISIL Ratings
Limited, (incorporated on June 3, 2019), a wholly owned subsidiary of the Company. This transfer has been undertaken through a ‘Scheme
of arrangement in terms of Section 230 to 232 of the Companies Act, 2013’ (‘Scheme’) which has been approved by Stock Exchanges. The
Scheme has been sanctioned by the National Company Law Tribunal (NCLT) with appointed date as January 1, 2020 and the certified
copy of the Order dated June 8, 2020 has been received on July 7, 2020 which has been filed with Registrar of Companies on July 20, 2020.
Further SEBI and Reserve Bank of India (RBI) has given necessary approval on December 4, 2020 and December 31, 2020, respectively, to
CRISIL Ratings Limited to act as a Credit Rating Agency. On receipt of approval, the Scheme became effective on December 31, 2020 with
the appointed date of January 1, 2020. The whole of the assets and liabilities of the transferred business became the assets and liabilities
of the resulting company and were transferred at their book value as per the Order, as appearing in the books of the Company with effect
from the appointed date.

46.1 The details of assets and liabilities transferred to CRISIL Ratings Limited are as under:

Statuory Reports
(Rupees in lakhs)
As at
Particulars
January 1, 2020
A. Assets
Property, plant and equipment 151
Intangible assets 8
Trade receivables 2,124
Loans 37
Cash and cash equivalents 2,880
Other bank balance 67
Current Investments 10,193
Other financial assets 963

Financial Statements
Other current assets 58
Total assets 16,481
B. Liabilities
Trade payable 306
Other financial liabilities 1,773
Provisions 1,226
Other current liabilities 8,006
Total liabilities 11,311
C. Net Assets 5,170

46.2 Pursuant to the requirements of Ind AS 105 ‘Non-current Assets Held for Sale and Discontinued Operations’, the financial results of
Ratings business transferred was presented as discontinued operations in the year ended December 31, 2019 as follows:

(Rupees in lakhs)
Year ended
Particulars
December 31, 2019
Revenue from operations 33,967
Total expense 15,901
Profit before tax 18,066
Tax expense 4,988
Profit after tax 13,078

229
CRISIL Limited

Standalone Financial Statements

Cash flow from discontinued operations is as follows:
(Rupees in lakhs)
Year ended
Particulars
December 31, 2019
Cash generated from operating activities 15,553
Cash used in investing activities (3,748)

47. During the year, the Company received export benefits amounting to Rupees 2,649 lakhs (Previous year 2,025 lakhs) in the form of duty
free saleable scrips under the Service Export Incentive Scheme (SEIS) from the government authorities and the same has been accounted
for as “Other income” in the standalone financial statements.

48. Previous year’s figures have been regrouped where necessary to conform to current year classification.

This is the summary of significant accounting policies

and other explanatory information referred to in our
report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of CRISIL Limited
Chartered Accountants
Firm Registration No.:001076N/N500013

Khushroo B. Panthaky John L Berisford Ashu Suyash

Partner Chairman Managing Director and Chief Executive Officer
Membership No.: 042423 [DIN: 07554902] [DIN: 00494515]
Place: Connecticut Place: Mumbai

Sanjay Chakravarti Minal Bhosale

Chief Financial Officer Company Secretary
Place: Mumbai
Date: February 11, 2021 Date: February 11, 2021
Place: Mumbai Place: Mumbai

230
Notice
NOTICE is hereby given that the Thirty-Fourth Annual General NOTES
Meeting (“AGM”) of the members of CRISIL Limited (the
Company) will be held on Tuesday, April 20, 2021 at 4.00 p.m FOR JOINING THE AGM THROUGH VC/OAVM:
IST through Video Conferencing (VC) and/or other audio visual 1.  he detailed procedure for participating in the AGM
T
means (OAVM) means, without the in-person presence of through VC/OAVM is as under:
shareholders.
i. Members will be provided with a facility to attend
In view of the continuing Covid-19 pandemic, the Ministry the AGM through the National Securities Depository
of Corporate Affairs (“MCA”) vide circular dated January 13, Limited (NSDL) integrated e-voting and AGM
2021 and Securities and Exchange Board of India (“SEBI”) attendance system.
vide circular dated January 15, 2021 (hereinafter referred
to as “Circulars”) permitted companies to hold their general ii. 
Members may access the same at [Link]
meetings through video conferencing (VC) or other audio visual [Link] under shareholders/members
means (OAVM) for the year 2021. In keeping with government login by using the remote e-voting credentials. The
advisories on Covid-19 and considering the current extra- link for VC/OAVM will be available against the name
ordinary circumstances, which are not conducive to a safe and EVEN of the Company.
conduct of the AGM with physical attendance of stakeholders, iii. Members who do not have the User ID and Password
the Board of Directors has approved conduct of the 34th for e-voting through NSDL system or have forgotten
Annual General Meeting through Video Conferencing and/or the User ID and Password may retrieve the same by
other audio visual means (OAVM) (hereinafter referred to as following the procedure stated in the instructions
“VC/OAVM”). related to e-voting, mentioned in the Notice. Further
Notice is hereby given that the following business will be members can also use the OTP based login for logging
transacted at the AGM: into the e-voting system of NSDL.
iv. M
 embers can participate in the AGM through smart
ORDINARY BUSINESS: phone/laptop, however, for better experience and
smooth participation, members are advised to join
1. Adoption of Financial Statements through a laptop connected through broadband.
To receive, consider and adopt: Please note that members connecting from mobile
devices or tablets or through laptops etc., connected
a. the Audited Financial Statements of the Company for via mobile hotspot, may experience audio/video loss
the year ended December 31, 2020, together with the due to fluctuation in their respective network. It is
Reports of the Board of Directors and the Auditors therefore recommended to use a stable Wi-Fi or LAN
thereon; and connection.
b. the Audited Consolidated Financial Statements of v. Members who would like to express their views/pose
the Company for the year ended December 31, 2020, questions/register as speaker shareholders at the
together with the Report of the Auditors thereon. AGM, may send their questions in advance at least
2. Declaration of dividend 48 hours before the start of the AGM i.e. by April 18,
2021 by 4.00 p.m. IST from their registered email
 o declare final dividend on equity shares of Rs.14 per equity
T
address mentioning their name, demat account
share and to approve and confirm the declaration and
number/folio number and mobile number, to the
payment of three interim dividends aggregating Rs. 19 per
Company’s email address investors@[Link]. The
equity share for the year ended December 31, 2020.
Company reserves the right to restrict the number of
3. Re-appointment of Mr. John Berisford speakers as appropriate for smooth conduct of the
AGM.
To appoint a Director in place of Mr. John Berisford (DIN
07554902), who retires by rotation and, being eligible, vi. For convenience of the members and proper conduct
seeks re-appointment. of AGM, members can login and join the AGM 15
minutes before the time scheduled for the AGM.
By order of the Board
Access will be open throughout the proceedings of
For CRISIL Limited AGM as well.
Minal Bhosale
vii. M
 embers attending the AGM through VC/OAVM will
Company Secretary
be counted for the purpose of reckoning the quorum
Mumbai, February 11, 2021  ACS 12999
under Section 103 of the Companies Act, 2013.

231
 viii. Members who need assistance before or during the on e-voting and proceed to Step 2 i.e. Cast your vote
AGM with use of technology, can: electronically.
– Send a request at evoting@[Link] or use toll d) User ID details are given below:
free no.: 1800-1020-990/1800-22-44 30; or
Manner of holding Your User ID is:
– Specifically for assistance with VC/OAVM facility, shares
contact Mr. Sanjeev Yadav, Assistant Manager, a) For Members who 8 Character DP ID followed by 8
NSDL at the designated email ID: evoting@nsdl. hold shares in demat Digit Client ID
[Link] or SanjeevY@[Link] or at telephone account with NSDL
number +91- 9324006225; or For example if your DP ID is IN300***
and Client ID is 12****** then your
– Specifically for escalation/assistance with e-voting, User ID is IN300***12******.
contact Ms. Pallavi Mhatre, Manager, NSDL at the b) For Members who 16 Digit Beneficiary ID
designated email ID: evoting@[Link] or at ‘toll hold shares in demat
free no. 1800-1020-990/1800-22-44 30. For example if your Beneficiary ID is
account with CDSL
12************** then your User
2. Corporate Members are requested to send a scanned ID is 12**************
copy of a duly certified copy of the Board Resolution c) For Members EVEN Number followed by Folio
authorising their representative(s) with attested holding shares in Number registered with the
specimen signature of the authorised representative to physical form Company
the Company, at investors@[Link] for participating at
the AGM. For example if folio number is
001*** and EVEN is 101456 then
3. As physical attendance of the members is dispensed User ID is 101456001***
with by law for VC/OAVM facilitated AGMs, the facility of
e) The password details are given below:
appointment of proxies by members will not be available
for the Meeting. If the member is already registered for
1) 
e-voting, then he/she can use the existing
Instructions related to e-voting:
password to login and cast his/her vote.
4. The Company will be providing e-voting facility to the
If the member is using NSDL e-voting
2) 
members so as to facilitate them to cast their vote on all
system for the first time, the member will
resolutions set forth in this Notice electronically, through
need to retrieve the ‘initial password’ which
e-voting services provided by NSDL.
was communicated to the member. Once
5. The remote e-voting period shall commence on Friday, you retrieve your ‘initial password’, you
April, 16, 2021 at 10:00 a.m. and end on Monday, April 19, need to enter the ‘initial password’ and the
2021 at 5:00 p.m. The remote e-voting module shall be system will force the member to change the
disabled at 5.00 p.m. on April 19, 2021. Once the vote on a password.
resolution is cast by a member, the member shall not be
3) How to retrieve the ‘initial password’?
allowed to change it subsequently or cast the vote again.
(i) 
If your email ID is registered in your
6. The instructions for e-voting are as under:
demat account or with the Company,
Step 1: Log-in to NSDL e-voting system at [Link]
 your ‘initial password’ is communicated
[Link]/ to you on your email ID. Trace the
• How to Log-in to NSDL e-voting website? email sent to you from NSDL from your
mailbox. Open the email and open the
a)  isit the e-voting website of NSDL. Open web browser
V attachment i.e. a .pdf file. Open the .pdf
by typing the following URL: [Link] file. The password to open the .pdf file
[Link]/ either on a personal computer or on a is the 8 digit client ID for NSDL account,
mobile. last 8 digits of client ID for CDSL account
b)  nce the home page of e-voting system is launched,
O or folio number for shares held in
click on the icon “Login” which is available under physical form. The .pdf file contains your
‘Shareholders’ section. ‘User ID’ and your ‘initial password’.

c) A new screen will open. Member will need to enter (ii) If your email ID is not registered, please
his/her User ID, Password and a verification code refer to point 25 below.
as shown on the screen. Alternatively, if the member f) 
If the member is unable to retrieve or have not
is registered for NSDL eservices i.e. IDEAS, he/ received the “Initial password” or has forgotten the
she can log-in at [Link] with password:
existing IDEAS login. Once the member logs-in to
NSDL eservices after using log-in credentials, click 1)  lick on “Forgot User Details/Password?” option
C
available on [Link], if you are

232
 holding shares in your demat account with NSDL Instructions for Members for e-voting on the day
or CDSL. of the AGM are as under:
2) Click on “Physical User Reset Password?” option 7. 
In terms of the provisions of Section 107 of the
available on [Link], if you are Companies Act, 2013, since the resolutions as set out
holding shares in physical mode. in this Notice are being conducted through e-voting, the
said resolutions will not be decided on a show of hands at
3) If the member is still unable to get the password
the AGM.
by aforesaid two options, he/she can send a
request at evoting@[Link] mentioning the 8.  embers who are participating in the AGM through VC/
M
demat account number/folio number, PAN, name OAVM on April 20, 2021 can cast their vote during the
and registered address. meeting electronically through e-voting services provided
by NSDL.
4)  embers can also use the OTP (One Time
M
Password) based login for casting the votes on 9. The e-voting at the AGM will begin once the Chairman or
the e-voting system of NSDL. Company Secretary announces the commencement of
the e-voting during the AGM.
g) After entering the password, tick on Agree to “Terms
and Conditions” by selecting on check box. 10. The e-voting module shall be disabled by NSDL for voting
after the conclusion of the meeting.
h) Thereafter the member will have to click on “Login”
button. 11. Once the vote on a resolution is cast by the member, the
member shall not be allowed to change it subsequently.
i) After the member clicks on the “Login” button, Home
page of e-voting will open. 12. T
 he procedure for e-voting at the AGM is the same as
mentioned above for remote e-voting and the same
Step 2: Cast your vote electronically on NSDL e-voting
e-voting credentials need to be entered while e-voting at
system
the AGM.
• How to cast your vote electronically on NSDL e-voting
13. The members who have cast their vote by remote e-voting
system?
prior to the AGM may also attend the AGM through
a. After successful login at Step 1, the member VC/OAVM but shall not be entitled to cast their vote again.
will be able to see the Home page of e-voting.
14. M
 embers can reach out for assistance in this respect
Click on e-voting. Then, click on Active Voting
to NSDL personnel at phone number and email ids
Cycles.
mentioned at 1 (viii) above.
b. After clicking on Active Voting Cycles, the
I nstructions commonly applicable to e-voting
member will be able to see all the companies
prior to or at the AGM
“EVEN” in which he/she is holding shares
and whose voting cycle is in active status. 15. 
A person whose name is recorded in the register
of members or in the register of beneficial owners
c. 
Select “EVEN” of Company for which you
maintained by the depositories as on the cut-off date
wish to cast your vote.
(i.e April 13, 2021) shall only be entitled to attend the
d. Now you are ready for e-voting as the voting AGM through VC/OAVM on April 20, 2021 and avail the
page opens. aforesaid facility of remote e-voting as well as e-voting at
the AGM.
e. 
Cast the vote by selecting appropriate
options i.e. assent or dissent, verify/modify 16. Any person who acquires shares of the Company after
the number of shares for which you wish to dispatch of this Notice and holds shares as of the Cut-Off
cast your vote and click on “Submit” and also Date i.e. as on Tuesday, April 13, 2021, may obtain login
“Confirm” when prompted. ID and password by sending a request to evoting@nsdl.
[Link] with a copy to investors@[Link] by mentioning
f.  pon confirmation, the message “Vote cast
U
his/her Folio No. or DP ID and Client ID. However, if you are
successfully” will be displayed.
already registered with NSDL for e-voting, you can use
g. The member can also take the printout of your existing User ID and password for casting your vote
the votes cast by him/her by clicking on the and attending the AGM.
print option on the confirmation page.
17. In case of joint shareholders, only such joint holder who is
h.  nce the member confirms the vote on the
O higher in the order of names will be entitled to vote.
resolution, he/she will not be allowed to
18. 
Corporate/Institutional Members (Corporate/Fls/Flls/
modify the vote.
Trusts/Mutual Funds/Banks, etc.) are required to send

233
 scan (PDF format) of the relevant Board resolution to the the members, as per Section 136 of the Companies Act,
Scrutiniser through e-mail to scrutinisers@[Link] with 2013 and Rule 11 of the Companies (Accounts) Rules,
a copy to evoting@[Link]. 2014. For other members, who have not registered their
email addresses, the Annual Report has been sent at their
19. 
It is strongly recommended not to share e-voting
registered postal address. The same is also available on
password with any other person and take utmost care to
the Company’s website at [Link], on the website
keep your password confidential. Access to the e-voting
of the Stock Exchanges i.e. BSE Limited and National
website will be disabled upon five unsuccessful attempts
Stock Exchange of India Limited and on the website of
to key in the correct password. In such an event, you will
NSDL at [Link]. Members who have not
need to go through the “Forgot User Details/Password?”
registered their email addresses so far are requested
or “Physical User Reset Password?” option available on
to get their email addresses registered. Members
[Link] to reset the password.
holding shares in dematerialised mode are requested to
20. In case of any queries, you may refer the Frequently register/update their email addresses with the relevant
Asked Questions (FAQs) and e-voting user manual Depository Participants. Members holding shares in
for shareholders available in the download section of physical mode are requested to update their email
[Link] or call on toll free no.: 1800- addresses with the Company’s RTA, KFin Technologies
1020-990/1800-22-44 30 or send a request to Ms. Private Limited at [Link]@[Link] with a copy
Pallavi Mhatre, Manager, NSDL at the designated email to investors@[Link] to receive copies of the Annual
ID: evoting@[Link] or at toll free no.: 1800-1020- Report 2020 in electronic mode by providing Folio No.,
990/1800-22-44 30. name, scanned copy of the share certificate (front and
back), PAN (self‑attested scanned copy of PAN card) and
21. The e-voting credentials sent along with the notice be
AADHAR (self-attested scanned copy of Aadhar card) for
considered for the purpose of remote e-voting, attending
registering email address.
and e-voting at the AGM.
Instructions related to the payment of Final
22. Mr. Makarand Joshi, Practicing Company Secretary, has
dividend for the year ending December 31, 2020:
been appointed Scrutiniser for scrutinising the e-voting
process in a fair and transparent manner. The Scrutiniser 26. The Register of Members and Share Transfer Books of
shall, within a period not exceeding three working days the Company will remain closed from Thursday, April
from the conclusion of the e-voting period, unblock the 1, 2021 to Friday, April 2, 2021 (both days inclusive) for
votes in the presence of at least two witnesses not in the determining the names of members eligible for dividend
employment of the Company and make a Scrutiniser’s on equity shares, if declared at the AGM.
Report of the votes cast in favour or against, forthwith to
27. Dividend as recommended by the Board of Directors, if
the Chairman of the Company.
declared at the AGM, shall be paid on Monday, April 26,
23. T
 he Results of remote e-voting and e-voting at the AGM, 2021:
on resolutions shall be aggregated and declared on or
(i) 
to those Members whose names appear on the
after the AGM and the resolutions will be deemed to be
Register of Members of the Company after giving
passed on AGM date subject to receipt of the requisite
effect to all valid transfers in physical form lodged
numbers of votes in favour of the Resolutions.
with the Company and its Registrar and Transfer
24. T
 he Results declared, along with the Scrutiniser’s Report, Agents before Thursday, April 1, 2021; and,
shall be placed on the Company’s website [Link].
(ii) in respect of shares held in electronic form, on the
com and on the website of NSDL within forty eight hours
basis of beneficial ownership as per the details
of the conclusion of the AGM and communicated to the
furnished by the National Securities Depository
Stock Exchanges where the shares of the Company are
Limited (NSDL) and Central Depository Services
listed, viz. BSE Ltd. and National Stock Exchange of India
(India) Limited (CDSL) at the close of business hours
Ltd.
on Thursday, April 1, 2021.
U
 pdation of Email address to receive e-copy
28. 
Members are requested to note that the Company’s
of Annual Report, attendance and e-voting
shares are under compulsory electronic trading for
credentials
all investors. Members are, therefore, requested to
25. In accordance with Section 101 of the Companies Act, dematerialise their shareholding to avoid inconvenience.
2013 read with Rule 18 of the Companies (Management Members whose shares are in electronic mode are
and Administration) Rules, 2014 and the aforesaid requested to inform change of address and updates
Circulars, the Annual Report of the Company for the of bank account(s) to their respective Depository
financial year 2020, including the Notice convening the Participants. Members holding shares in physical form
AGM, are being sent by email to the members whose are requested to advice such changes to the Company’s
email addresses are available with the depositories for Registrar and Transfer Agent, KFin Technologies Private
communication purposes or are obtained directly from Limited. Members are encouraged to use the Electronic

234
 Clearing Services (ECS) for receiving dividends. Members 33. T
 he Register of Directors and Key Managerial Personnel
desirous of availing ECS facility for payment of dividend and their shareholding maintained under Section 170
may download the required ECS mandate form from the of Companies Act, 2013 and the Register of Contracts
website of the Company, [Link]. or Arrangements in which Directors are interested
maintained under Section 189 of the Companies Act,
29. 
The Company has transferred the unclaimed or un-
2013 will be available for inspection by the members
encashed dividends for financial years upto 2013 to
during the AGM in electronic mode upon login at NSDL
the Investor Education and Protection Fund (IEPF)
e-voting system at /[Link]. Members can
established by the Central Government. The Company
also inspect the same by sending an email to investors@
transfers the unclaimed or un-encashed dividend to IEPF
[Link] up to date of this Annual General Meeting i.e.
after the expiry of seven years from the date of transfer to
April 20, 2021.
unpaid dividend account.
34. T
 he Securities and Exchange Board of India has mandated
Members who have a valid claim to any unclaimed
the submission of Permanent Account Number (PAN)
dividends which are not yet transferred, may claim the
by every participant in the securities market. Members
same from the Company immediately. The detailed
holding shares in electronic form are, therefore, requested
dividend history, due dates for transfer to IEPF and the
to submit their PAN to their Depository Participants
details of unclaimed amounts lying with the Company in
with whom they are maintaining their demat accounts.
respect of dividends declared since 2014 are available on
Members holding shares in physical form can submit
website of the Company, [Link].
their PAN details to the Company or to the Registrar and
 lso, pursuant to Section 124(2) of the Companies Act,
A Share Transfer Agent.
2013, the Company has uploaded details of unpaid and
35. S
 ince the AGM will be held through VC/OAVM means, the
unclaimed amounts lying with the Company in respect of
Route Map is not annexed in this Notice. The Registered
dividends declared in financial year 2020, on the website
Office of the Company will be deemed to be the venue of
of the Company.
the AGM.
General Instructions
36. Pursuant to the Securities and Exchange Board of India
30. 
All the documents referred to in the Notice will be (Listing Obligations and Disclosure Requirements)
available for inspection in electronic mode by the Regulations, 2015 and Secretarial Standard-2, the
Members between 11.00 a.m. and 1.00 p.m. on all working following information is furnished about the Directors
days, except Saturdays, from the date hereof upto the proposed to be appointed/re-appointed:
date of the Meeting by sending an email to investors@
1. Mr. John Berisford:
[Link].
Mr John Berisford (age 57 years) was appointed as a
31. T
 he certificate from the Statutory Auditors of the
director of the Company w.e.f. July 19, 2016.
Company certifying that the Company’s Employee Stock
Option Scheme – 2011, Employee Stock Option Scheme  r John Berisford is the President of S&P Global Ratings.
M
– 2012 and Employee Stock Option Scheme – 2014 He has ultimate responsibility of all aspects of the
are being implemented in accordance with Securities business, including commercial, analytical, control,
and Exchange Board of India (Share Based Employee technology and operations.
Benefits) Regulations, 2014 and in accordance with the
 &P Global Ratings is regulated in many of the countries
S
resolutions passed by the members of the Company will
in which it operates. Mr Berisford is a director of two of
be available for inspection by the members during AGM
its largest legal entities, S&P Global Ratings Europe
in electronic mode upon login at NSDL e-voting system
Limited and Standard & Poor’s Financial Services LLC.
at [Link]. Members can also inspect the
same by sending an email to investors@[Link] up to Previously, Mr Berisford was the Executive Vice President
date of this Annual General Meeting i.e. April 20, 2021. of Human Resources for S&P Global Inc. (formerly known
as The McGraw-Hill Companies). In this role, he was
32. The Annual Report of the Company along with the Notice
instrumental in creating and executing the Company’s
of the 34th Annual General Meeting is also available on
growth and value plan, resulting in the creation of McGraw
the website of the Company, [Link] and on the
Hill Financial and the sale of McGraw Hill Education.
website of BSE Ltd. and National Stock Exchange of India
He led the initiative to create the Company’s focused
Ltd. As per Section 136(1), the copies of the aforesaid
business unit operating model, while strengthening
documents will also be available for inspection in
the human resource function with new capabilities to
electronic mode between 11.00 a.m. and 1.00 p.m. on all
support growth and performance goals.
working days, excluding Saturdays, by sending an email
to investors@[Link].

235
 Before joining S&P Global in 2011, Mr Berisford spent Mr Berisford will not be paid any remuneration other
22 successful years at PepsiCo where he spearheaded than sitting fee for attending meetings of the Board and
a number of important global initiatives and Committees thereof of which he is a member/Chairperson
transformations. Among other strategic projects, he led or commission which may be approved by the Board of
the integration after PepsiCo acquired the independent Directors and/or the Nomination and Remuneration
Pepsi Bottling Group into its overall corporate structure. Committee of the Board. He does not hold any share in
the Company and is not related to any Director or Key

Mr Berisford holds a bachelor’s degree in political
Managerial Personnel of the Company in any way. The
science from West Liberty College in West Virginia and a
details of Mr Berisford’s attendance of the Board and the
master’s degree in labour and industrial relations from
Committee metings have been given elsewhere in this
West Virginia University.
Annual Report.
Mr Berisford is a director in Standard & Poor’s Financial
Services LLC, S&P Global Real Estate Inc., S&P Global
International LLC, Standard & Poor’s Credit Market By order of the Board
Services Europe Limited and S&P Global Ratings.
For CRISIL Limited
Mr Berisford is a member of the Nomination and

Minal Bhosale
Remuneration Committee of the Board of Directors of
Company Secretary
CRISIL Limited.
Mumbai, February 11, 2021 ACS 12999

236
Notes

237
Notes

CRISIL respects your privacy. We may use your contact informations such as your name, address and email id to fulfill your request and service your
account and to provide you with additional information from CRISIL. For further information on CRISIL’s privacy policy please visit [Link]

The Annual Report contains forward looking statements based on our current expectations, assumptions, estimates and projections regarding
the Company’s businesses. These forward-looking information and statements can generally be identified by the fact that they do not relate only
to historical or current facts. Forward-looking statements sometimes use terminology such as “targets”, “believes”, “expects”, “aims”, “assumes”,
“intends”, “plans”, “seeks”, “will”, “may”, “anticipates”, “would”, “could”, “continues”, “estimate”, “milestone” or other words of similar meaning and similar
expressions or the negatives thereof. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from those
expressed or implied by the forward-looking statements. Given the aforementioned uncertainties, prospective or present shareholders / investors
and users of this Report are cautioned not to place undue reliance on any of these forward-looking statements. The Company does not undertake
to update the forward-looking statements in the future, unless legally required.

238
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239
Office Locations
Registered Office: Gurgaon IT - 3, 1st Floor,
CRISIL House, Central Avenue, Qubix Business Park Private Limited,
Plot No. 46, Sector 44,
Hiranandani Business Park, Neopro SEZ, Plot No 2,
Opp PF Office,
Powai, Mumbai - 400 076, Blue Ridge Township,
Gurgaon - 122 003
Maharashtra, INDIA Rajiv Gandhi Infotech Park, Phase 1,
Hinjewadi, Pune - 411057
Hyderabad
Argentina
Avenida del Libertador General San Uma Chambers, 3rd Floor, Japan
Martin 174, Plot No. 9 & 10, Nagarjuna Hills, Greenwich Associates,
1st, 5th & 10th floor. Vicente López, Near Punjagutta Cross Road, Partir Akasaka,
Buenos Aires, Argentina Hyderabad - 500 082 Room 414, Minato-Ku,
Tokyo, Japan
China Workafella,
Hangzhou Western Aqua Building, Poland
1603 & 1606, Hengxin Mansion, #588, 12th Floor, Hitech City, Renaissance Business Centre,
JiangNan Road, Binjiang Kondapur, Hyderabad, Sw. Mikołaja 7, 50-125,
Hangzhou 310052 Telangana – 500 084 Wrocław, 6th floor

Dubai Singapore
Kolkata
Pragmatix Services Pvt Ltd. Coalition Development Singapore Pte Ltd
Office No. 201, BioWonder, Unit No 1002, 80 Robinson Road
Office court Building, 10th Floor, 789, #15-02 Singapore 068 898
Unit No. RP004, PO Box No. 121 086 Anandpur Main Road, EM Bypass,
West Bengal, Kolkata - 700 107 Greenwich Associates Singapore Pte. Ltd.
The Great Room, 1 George Street,
India Marol #10-01 Singapore 049 145
Ahmedabad 1st Floor, Fleet House,
Andheri - Kurla Rd, UK
D - 709/710, The First,
Gamdevi, Marol Naka, London
Near Keshavbaug,
Off. 132, Ring Road, Vastrapur, Mumbai - 400 059 CRISIL Limited & Coalition
Ahmedabad - 380 015 Development Limited.
Navi Mumbai 8th Floor & 12th Floor,
Bengaluru Unit 2, 5th Floor, Bldg. 5 & 6 20 Canada Square,
Mindspace SEZ London E145LH UK
W - 101, 1st floor, Sunrise Chambers,
22, Ulsoor Road, Thane Belapur Rd, Airoli,
Navi Mumbai – 400 708 CRISIL IREVNA UK Limited
Bengaluru - 560 042
1 Giltspur Street,
Pune London EC1A 9DD
Chennai
9th Floor, A Wing 1187/17, Ghole Road, USA
Prestige Polygon IT park Shivaji Nagar, CRISIL Limited & Coalition
Anna Salai, Teynampet Pune - 411 005 Development Limited.
Chennai – 600 018 39th Floor, 55 Water Street,
New York NY 10041

Greenwich Associates LLC,

Six High Ridge Park,
Stamford CT 06905

240
 altian
Concept and Design by

CRISIL Limited, CRISIL House, Central Avenue, Hiranandani Business Park,Powai,

Mumbai - 400076. India. Phone: +91 22 3342 3000 | [Link] | [Link]