2001 2002

CRISILs STRATEGY AND VISION
To be the pre-eminent opinion maker on credit quality, business, industry, economy and capital market issues by pursuing highest standards of analytical rigour, maintaining objectivity and independence and by proactively innovating new products and services and by anticipating markets needs, to aid investment of any nature in India in a credible, objective and analytically sound manner. To be the most respected advisor on a range of policy, commercial and risk issues by providing meaningful, effective and comprehensive solutions, leveraging on contemporary knowledge, expertise garnered out of experience and driving excellence in delivery capability. To become the most preferred employer in the financial services domain in India, by pursuing best employment practices transparently and justly, by providing engaging work and self development opportunities, and by pursuing a progressive and satisfying remuneration policy. To enhance shareholder value by fostering accelerated revenue growth, by containing operating costs, seeking to earn returns on capital available with the Company at a rate higher than benchmark returns available to the shareholders. To acquire global positioning by serving an expanded marketplace to global quality standards while remaining a cost efficient service provider.
Report 15th Annual 2001 - 2002
Document Guide
Board of Directors ................................................................................................................. 02 Board Committees / Senior Management ................................................................................ 03 Directors Report .................................................................................................................... 06 Management Discussion & Analysis Report ............................................................................. 18 Corporate Governance Report ................................................................................................. 28 Crisil - Ten Year Highlights ..................................................................................................... 42 Information for Shareholders ................................................................................................. 43 Auditors Report .................................................................................................................... 48 Balance Sheet, Revenue Account and Schedules ...................................................................... 50 Notes to the Accounts ............................................................................................................ 57 Cash Flow Statement ............................................................................................................. 62 Statement Pursuant to Section 212 of the Companies Act,1956 .............................................. 64 Balance Sheet Abstract and Companys General Business Profile .............................................. 65 Consolidated Accounts ........................................................................................................... 66
Annual Report of Subsidiaries of CRISIL

Crisil Research & Information Services Limited ....................................................................... 79 Crisil.Com Limited ................................................................................................................ 95 Crisil Properties Limited ....................................................................................................... 111 Global Data Services of India Limited................................................................................... 123 Notice ................................................................................................................................. 140 Attendance Card and Proxy Form
Board of Directors
Mr. B.V. Bhargava Mr. A. V. Rajwade Dr. S. A. Dave Mr. B. R. Shah Mr. M. G. Bhide Ms. Rama Bijapurkar Dr. Bala V. Balachandran Mr. Edward Emmer Mr. R. Ravimohan Mr. Hemant Y. Joshi Ms. Roopa Kudva Alternate Ms. Cecile Saavedra Managing Director Executive Director Executive Director and Chief Rating Officer Chairman
4 2
Report 15th Annual 2001 - 2002 Executive Committee B.V. Bhargava, Chairman A. V. Rajwade M. G. Bhide R. Ravimohan Hemant Y. Joshi Roopa Kudva Compensation Committee B. V. Bhargava, Chairman Dr. S. A. Dave B. R. Shah Auditors S.B. Billimoria & Co. Bankers ICICI Bank Ltd. Andhra Bank Investment Committee B. V. Bhargava, Chairman A. V. Rajwade M. G. Bhide R. Ravimohan Hemant Y. Joshi Management Committee R. Ravimohan Hemant Y. Joshi Roopa Kudva Solicitors Wadia Ghandy & Co Share Transfer Agents Karvy Consultants Ltd. Karvy House, 21, Avenue-4, Street No.1, Banjara Hills, Hyderabad 500 034. Investors Grievance Committee B. R. Shah, Chairman R. Ravimohan Hemant Y. Joshi
Audit Committee B. R. Shah, Chairman Dr. S. A. Dave M. G. Bhide Company Secretary Shrikant Dev Registered Office CRISIL House, 121-122,Andheri-Kurla Road, Andheri (East), Mumbai 400 093
Senior Management Team at Crisil Rating Services

Arun Panicker Director - Corporate Sector Rating Services S. Venkataraman Director - Financial Sector Rating Services D. Thyagarajan Director - Structured Finance Rating Services A. Anil Kumar Director - Infrastructure Sector Rating Services Sujatha V. Srikumar Director - Rating Criteria & Product Development Raman Uberoi Director - Business Development
Advisory & Information Services

Anjali Forbes Director - Corporate Brand & Market Services Shrikant Kulkarni Director - Energy Sector Advisory Services Sanjay Sinha Director - Transport and Urban Infrastructure Advisory Services Subir Gokarn Chief Economist - Center for Economic Research D. Ravishankar Director - Crisil Investment & Risk Management Services and Chief Financial Officer
Facilitating Services
Murali Aiyer Director - Human Resources Sudesh Puthran Chief Technology Officer
5 3
CRISIL - Board Of Directors

Mr. B.V. Bhargava, Chairman
Mr. Bhargava is Chairman of CRISIL and is also the Chairman of the Rating Committee. Following a career spanning nearly three decades with ICICI Ltd., Mr. Bhargava retired as Vice-Chairman and Managing Director in 1996. He has also served with the Tariff Commission of India, the Indian Investment Centre, New York and as Chairman, ICICI Telecom Group advisory to the Government of India. His other Directorship includes Raymond Ltd. and Grasim Industries Ltd.
Mr. A. V. Rajwade, Director

Mr. Rajwade has been practising as an independent consultant in international finance and foreign exchange and interest rate risk management since 1981. He was a Member of the Committee on Capital Account Convertibility, appointed by RBI, and is a member of the Supervisory Board of the Indian Opportunities Fund Ltd., Bermuda and Mauritius. Besides being a columnist for more than two decades, he is the author of several books on foreign exchange, international finance and risk management.
Dr. S. A. Dave, Director

Dr. Dave is currently the Chairman of Centre for Monitoring Indian Economy Ltd. He has had a distinguished career in the Indian financial sector having served as Chairman, Unit Trust of India (1990-1996), Chairman, Securities and Exchange Board of India (1988), Executive Director, Industrial Development Bank of India (1978 -1988) and Deputy Director, Economics Department, Reserve Bank of India (1968 -1972). Other Directorships held include HDFC Ltd., SBI Gilts Ltd, Escorts Ltd. and LIC.
Mr. B. R. Shah, Director

Mr. Shah has had a career spanning 37 years with the Unilever Group of Companies in India including Directorship of Hindustan Lever Limited and Chairmanship of Lipton India Ltd. He is presently, Vice-Chairman of Indus Venture Management Limited and is also on the Board of several other companies.
Mr. M. G. Bhide, Director

Mr. M G Bhide was the ex-Chairman & Managing Director of Bank of India. He was associated with State Bank of India in the capacity as Managing Director & Group Executive (National Banking Division) and Deputy Managing Director & Chief Credit Officer of SBI, Mumbai. Currently, he holds the Chairmanship of National Institute of Bank Management at Pune and also of the Advisory Group of RBI for "Payment and Settlement Scheme". Mr. Bhide was also a Member of Technical Advisory Committee on Money & Government Securities Market set up by RBI. He is also currently on the Board of several Companies including Finolex Industries Ltd., Mahindra & Mahindra Financial Services Ltd., and J. P. Morgan Securities India Pvt. Ltd.
Ms. Rama Bijapurkar, Director

Ms. Rama Bijapurkar is a recognised leader on marketing strategy and consumer related issues in India and runs a strategic marketing consulting practice working across a wide range of sectors, helping organisations with their marketing strategies. Prior to that, from 1995 to 1997, Ms. Bijapurkar worked with McKinsey and Company as a Senior Marketing Consultant. From 1989 to 1995, she was the Deputy Managing Director of MARG and worked between 1982 and 1987 with MODE Services, which she co-founded. In addition, she is a visiting faculty at IIM Ahmedabad.
4

She is an alumna of IIM Ahmedabad and holds an Honors degree in Physics from the Delhi University. Ms. Bijapurkar serves on the Boards of Infosys Technologies Ltd., Titan Watches Ltd., and Godrej Consumer Products Ltd.
Dr. Bala V. Balachandran, Director

Dr. Bala Balachandran, is a distinguished Professor of Accounting Information Systems and Decision Sciences at J. L. Kellogg Graduate School of Management, USA. Dr. Balachandran is globally acknowledged as an opinion leader in areas of Business effectiveness, Accounting Systems, Decision Science and the evolving subject of fusion of technology with matters relating to finance. The most prominent amongst his seminal work being a book titled "Re-engineering Revisited" published in May, 1999. He was awarded Padmashri for outstanding contribution in the field of literature and education.
Mr. Edward Emmer, Director

Edward Z. Emmer is Executive Managing Director of Standard & Poor's Corporate and Government Services group. In this capacity, he has global responsibility for Standard & Poor's ratings of industrial companies, financial institutions, and sovereign/international public finance and domestic U.S. public sector entities. In his current capacity, he has 1,000 employees in 20 offices around the world. Mr. Edward Emmer holds a B.A. in Economics and an M.B.A. in Finance and Economics from Fairleigh Dickinson University and is a three-time recipient of the McGraw-Hill Excellence in Management Award.
Ms. Cecile Saavedra, Alternate Director to Mr. Edward Emmer

Ms. Cecile Saavedra is the Asia-Pacific region head for Standard & Poor's Ratings Services and has been responsible for directing the activities since 1986. Ms. Cecile Saavedra looks after the regional operations through the four branches - Hong Kong, Melbourne, Tokyo and Singapore. She holds a B.S. in Commerce, from the University of Santo Tomas in the Philippines and graduated with distinction from New York University Graduate School of Business with a major in finance. Prior to joining Standard & Poor's, she worked with First Boston Corporation and Channing Management Corporation in New York.
Mr. R. Ravimohan, Managing Director

Mr. Ravimohan has been Managing Director of CRISIL since 1994. As Chief Executive Officer of the Over-the-Counter Exchange of India (OTCEI - 1990-94), he was instrumental in the setting up of India's first electronic stock exchange. He has also served as Member on the Advisory Committee of the Securities and Exchange Board of India and the Managing Committee of the Bombay Chamber of Commerce and Industry and Assocham. He has had a long initial career with ICICI Ltd. in the areas of project appraisal, systems design, credit administration and merchant banking.
Mr. Hemant Y. Joshi, Executive Director

Mr. Joshi has a background of over 15 years working in industry as well as in management consultancy. With CRISIL since 1992, he is currently responsible for CRISIL Advisory Services and the Company's Research & Information Services division.
Ms. Roopa Kudva, Executive Director and Chief Rating Officer

Ms. Roopa Kudva heads the ratings business of the Company. She joined CRISIL in 1992. She had previously worked for 6 years at Industrial Development Bank of India in the Project Finance Department. She has also worked in emerging markets in the Mediterranean and Middle East countries during her secondment to Standard & Poor's, Paris, as Director, Financial Institutions Ratings. She holds a graduate degree in Statistics and a Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad.
5
DIRECTORS REPORT
To the Members,
Your Directors present the Fifteenth Annual Report of the Company with the Audited Accounts for the financial year ended March 31, 2002.
Performance
A summary of your Companys financial performance is given below : Year ended March 31, 2002 (Rs. lacs) Total Income for the year was Profit before depreciation and taxes was Deducting therefrom depreciation of Profit before tax was Deducting therefrom taxes of Profit after tax was The proposed appropriations are :Dividend Corporate Dividend Tax General Reserve Balance carried forward 403.00 -800.00 442.73 341.00 34.78 800.00 337.98 6929.46 3563.52 701.25 2862.26 1554.51 1307.75 Year ended March 31, 2001 (Rs. lacs) 5153.72 1876.60 538.16 1338.44 372.00 966.44
Dividend
The Directors recommend for approval of the shareholders at the Annual General Meeting to be held on August 2, 2002, payment of 65% dividend for the year under review (previous year 55%).
6
Report 15th Annual 2001 - 2002 Review of Operations A. Ratings Services

The Ratings business exhibited robust growth during the year 2001-02 notwithstanding the shrinkage in primary debt issuance volumes, indifferent corporate performance and the uncertainties caused by the events of September 11 and December 13, 2001. Three key trends have underpinned the growth of the Ratings business in 2001-02. The first was the increased activity in the debt markets with declining interest rates. Although primary issuance volumes declined to Rs.39,900 crores in the first nine months of 2001-02 from Rs.66,100 crores in 2000-01, traded volumes in the secondary markets increased sharply to almost Rs. 25,000 crores. The market has shown resilience and bounced back after the setbacks of September 11, 2001 and December 13, 2001. As interest rates moved to historic lows, refinancing of debt witnessed an upsurge. The second trend was the increased investor demand for ratings. Around 90% of the primary debt issuance in 200102 was rated compared to around 70% in 2000-01. This despite the fact that the market is dominated by private placements, where ratings are not mandatory. A growing risk consciousness amongst investors is increasing the demand for ratings. Your Company benefitted the most from this demand as its ratings enjoy the best credibility in the market place. The third trend was the increased merger & amalgamation activity and the pick-up in the Governments disinvestment programme. Towards the end of FY 2001-02, this trend spurred the demand for rated borrowings. We believe that the above trends would sustain in 2002-03 as well. Other expected growth drivers for the ratings business include increased activity in the debt market with a continued shift in the funding profile towards traded instruments vis--vis traditional sources of funding (bank borrowings), higher capital adequacy requirements for financial sector players and reduced sovereign support to state-owned entities. Structured finance is also expected to significantly increase in the coming years and CRISIL is well positioned to capitalise on this business opportunity. The growing use of ratings for credit decisions augurs well for your Company due to its well-established analytical credentials. Some landmarks achieved by the Ratings division in 2001-02 are highlighted below:
q q q q q q
Grading of healthcare institutions launched with the announcement of grades assigned to three hospitals Introduction of a new rating symbol (with r subscript) to indicate non-credit risk First rated debt transaction for an acquisition Two new State Government ratings Government of India guaranteed debt ratings First rated take-out cum guarantee facility by an infrastructure development finance institution.
Corporate Sector Rating Services (CSRS)

Revenue growth in corporate sector ratings was mainly driven by refinancing of debt due to the continuous drop in interest rates. New offerings such as the Advance Rating Service and structured ratings have grown significantly and account for 30% of the CSRS billings. The 42 new companies rated during 2001-02 constituted 30% of CSRS initial rating fees. The CSRS has also made significant progress in generating business from Standard and Poors. Although this is still a small component of its revenues, there is a significant order book as on date and CSRS expects
7
to double its international revenues in the current year. Governments disinvestment programme and a further round of refinancing by stronger corporates, are expected to drive CSRS revenues in the coming year.
Financial Sector Rating Services (FSRS)

2001-02 was a year of buoyant revenues and diverse activity for FSRS. During the year, CRISIL rated Tier II capital issues of seven banks. Three new ratings were assigned to bond funds. The NBFC sector continued to witness increased issuance of rated paper by the larger players. Increasing risk aversion by lenders/investors and restricted avenues for raising capital led to a greater demand for structured finance ratings. With stringent capital requirement norms on the anvil and increasing provisioning pressures, the banks appetite for Tier II borrowings is expected to remain high. Funding requirements for growth, the thrust on retail lending and clear trends towards convergence in the financial sector would drive demand for ratings in this sector.
Infrastructure Sector Rating Services (ISRS)

Power, public finance (for infrastructure projects) and oil & gas sectors have been significant contributors to the revenue mix in the infrastructure ratings business. A number of new issuers, primarily Government and quasiGovernment entities, have been added to CRISIL s portfolio. Lack of policy level clarity in the infrastructure sector continues to deter investment in infrastructure projects. However, business growth would be driven by project-specific funding by existing issuers in the power and telecom sectors and a second round of refinancing. Investments in retailing and distribution infrastructure in the oil sector following the dismantling of the Administered Price Mechanism, divestment of Government shareholding in Public Sector Undertakings and mergers & acquisitions/network rollouts in the telecom sector are also expected to provide opportunities for ISRS.
Formation of Structured Finance Rating Services (SFRS)

Revenues from rating of structured finance transactions grew significantly in 2001-02 and several new asset classes and instruments were rated. These included office equipment receivables and single and multiple credit Collateralised Loan Obligations (CLO) transactions. Your Company expects the significant growth in structured finance ratings to continue. In an endeavour to provide focused analytical expertise to its clients in this sector and to establish its core competence SFRS was created towards the end of FY 2001-02. Your Company expects the traditional Asset Backed Securities and Mortgage Backed Securities transactions to continue to be a key revenue source in the coming year. CBO/CLO transactions and newer forms of securitisation such as trade receivables and credit card receivables are also expected to contribute to the growth in the coming year.
Rating Criteria & Product Development Centre (RCPD)

RCPD is the policy research, rating quality assurance and new product development wing of the ratings division. During 2001-02, RCPD developed rating criteria for several new products. The market response for the Healthcare Institution Grading product developed by RCPD has been encouraging. Your Company has already assigned grades to three healthcare institutions. The Broker Evaluation Service was also launched and CRISIL has already assigned the first ratings. RCPD has also developed a Quick Rating Model, a PC-based model to generate indicative rating scores based on financial information. The accuracy of the model is comparable with other similar international products. The product will be launched shortly. The data-mining activity undertaken by RCPD has led to the compilation of default and transition statistics of CRISIL over the last decade. These find extensive application in the area of credit risk solutions and structured finance transactions.
8

RCPD has also developed a PC-based software for computing default and transition statistics and the product will be launched shortly. RCPD will continue to focus on developing new products for the ratings business. Credibility First (CF) In 2001-02, CF launched a series of new rating and grading services for stock-brokers, construction industry entities, SMEs and B2B exchanges. CF is actively engaged in evaluating the supply and distribution chains of Companies by grading their vendors and dealers. In alliance with GETIT Infomediary Limited, Indias leading yellow page publishing Company, CF launched a unique certification facility for service and trade segments of industry. The certification would provide trust to business partners and hence is expected to facilitate trade and business transactions in a transparent and credible manner. The certification is also expected to create a community of profiled business entities in the services and trade segments. This unique facility has been launched in 20 cities across India and would be marketed through GETITs sales network. During the year, CF also developed an Internet enabled rating platform, RatePro. This is an application software which automatically generates ratings based on the benchmarks and input data. The RatePro software platform is expected to facilitate faster and cost-effective delivery of various rating and evaluation services by CF to small and medium sized enterprises.
Transparency and customer service

The importance of accountability cannot be over-emphasised for a listed Company. In 2001-02, your Company significantly increased its emphasis on a wider and more frequent dissemination of analytical opinions with the objective of enhancing transparency regarding its rating methodology and providing a better understanding of ratings to the investor and issuer communities. In a key initiative, CRISIL became the first rating agency to publish rating transition and default rates, which will go a long way in increasing investor confidence in ratings. The publication of criteria pieces, commentaries and analytical opinions has been stepped up. A compendium of criteria for Corporate, Financial and Infrastructure sector ratings will be released shortly. The year also saw an upgradation of the monthly CRISIL RatingScan, which now includes contemporary articles and write-ups on the latest rating actions. During the year, your Company organized a seminar on the Role of Trustees, which was well received by various constituents of the debt market. Joint teams from the Business Development and analytical groups made presentations on rating criteria and new trends to a large number of investors including banks and mutual funds. Your Company also organized four retail investor meets where presentations were made in regional languages on the benefits of credit ratings. These received an enthusiastic response from the audiences. Several presentations were also made at seminars organized by the medical fraternity to explain CRISIL s criteria for grading hospitals. With a view to significantly enhancing the quality and reach of dissemination, a new CRISIL Ratings website was launched. The new Ratings website, www.crisilratings.com, is rich in content and powerful in functionality, and received a good response.
Productivity and process improvements

The high growth in the ratings business was achieved without any manpower addition, and represents important productivity gains. Several process improvements have been implemented including a complete shift to sectoral
9
specialisation, adoption of the primary analyst style of functioning and migration to automated workflow systems. The stabilization of the newly introduced cadre of executive trainees and a clearer demarcation of job roles and responsibilities in some groups also contributed to improved efficiencies. Work flow automation and process improvements helped timely publication of rating rationales. Streamlining of the surveillance billing process and an increased focus on collections resulted in a significant improvement in working capital management.
B. Crisil Advisory Services (CAS)

During the year under review, CAS has emerged as a preferred partner to progressive State Governments and Urban Local Bodies desirous of undertaking sectoral and fiscal reforms and infrastructure development through Public Private Partnership initiatives. It has made significant inroads into the multilaterally funded projects market and is currently leading a number of assignments with international partners. It has also completed a couple of assignments overseas. Highlights of work done during the year in each of the areas is given below. Energy Advisory Services CAS (Energy) CAS(Energy) made a significant breakthrough into the multilateral funded market, which contributed a substantial portion of the business generated during the year. The group won four multilateral mandates including an Asian Development Bank (ADB) funded mandate for preparing the reorganization plan for Gujarat Electricity Board and a Department for International Development (DfID) funded mandate where CAS has been jointly appointed as Privatisation Advisors in the State of Andhra Pradesh. CAS (Energy) was appointed lead consultant in a DfID funded project to assist Haryana Electricity Regulatory Commission in tariff determination, and an ADB funded mandate, on power sector reforms in the State of Kerala. CAS (Energy) has won the multilateral mandates in the face of stiff international competition and has attained a level of excellence, that is comparable to international standards. It also undertook extensive work in the area of reforms, restructuring and regulation for a number of utilities and State Electricity Regulatory Commissions. CAS (Energy) continued its long-standing relationship with the Maharashtra State Electricity Board. In the oil and gas area, CAS (Energy) continues to do cutting edge work for leading utilities such as Petronet LNG Limited, Gas Authority of India Limited and Gujarat State Petronet Limited, advising them on key strategic, financial and commercial issues. CAS (Energy) advised international lenders to a shipping Company in conducting market due diligence and undertook assessment of gas & power markets for two global oil major. CAS (Energy) continues to build on its strategie partnership with National Economic Research Association, USA (NERA). Among other engagements CAS (Energy) and NERA worked on developing the Gas Regulatory framework in Tamil Nadu. Transport & Urban Infrastructure Advisory Services CAS (T&UI) During the year, CAS (T & UI) significantly enhanced its scope of services as well as its geographic coverage. It is actively engaged in working with a number of State Governments in creating an enabling environment for private sector participation in infrastructure development. A highlight for CAS(T&UI) was the enactment of the infrastructure privatisation statute, Andhra Pradesh Infrastructure Development and Enabling Act, formulated by it for the Government of Andhra Pradesh. Enthused by the progressive stance of this Act, many State Governments and the Central Government are contemplating similar legislation and CAS(T &UI) has been retained by the Government of Maharashtra for drafting a suitable infrastructure privatisation statute for the State. It has also worked with other
10

States to develop business plans for a Nodal Infrastructure Development Body and a Nodal Urban Infrastructure Development Body. Some of the other key assignments undertaken include advising on Strategies for Revenue Augmentation and System Improvements for a Municipal Corporation and advising on Structuring and Feasibility of a Special Economic Zone (SEZ). CAS now has the capability of partnering State Governments and Urban Local Bodies in developing and implementing a roadmap for economic development. CAS (T &UI) has a strong presence in sectors like airports, ports and solid waste treatment and has completed a number of assignments in these areas. It partnered Standard & Poors to advise an Infrastructure Development Bank in Malaysia on developing an infrastructure risk assessment framework. Corporate & Capital Market Advisory Services- CAS (CCM) During the year under review, CAS (CCM) executed advisory mandates by strategic investors to assist on potential acquisitions/joint ventures in various sectors. New mandates for market and pricing evaluation continued to be executed in the areas of LNG and telecom. The group was mandated by the Indian Cotton Mills Federation to review the excise policy for the textile industry. Its recommendations served as critical inputs to the Union Budget proposals (on the subject). It also provided advisory assistance to the Disinvestment Commission and Government of Orissa on their respective PSE disinvestment initiatives. CAS (CCM) continued to enhance its assistance to the mutual fund industry. It has been working closely with the Association of Mutual Funds in India (AMFI) to refine the bond valuation methodology for the fund industry in light of the debt market developments and for development of benchmarks for measuring Mutual Fund Performance. The methodology has been mandated by SEBI and CAS has provided the software to the industry to assist in its uniform implementation. Banking & Finance Advisory Services - CAS (B&F) During the year, CRISIL further strengthened its position as a leading provider of credit risk management tools and services. The increasing shift to risk-based pricing and lending amongst banks, supported by RBI directives, is expected to result in strong growth for CAS (B&F) during 2002-03. CAS (B&F) made an important breakthrough in the international arena when CRISIL was chosen by the African Development Bank to undertake a privatisation study of a multi-national bank operating in Africa. The assignment has been sucessfully completed and is likely to pave the way for more international advisory business.
C. Crisil Investment & Risk Management Services (CIRM)

Your Company has leveraged its analytical resources and deep understanding of the markets in developing various products for the markets. Over the past couple of years, these have grown in numbers and spread across various domains. In order to consolidate its offerings and to provide integrated end-to-end solutions, your Company has formed a new unit called CIRM. It will offer a wide variety of products and services, either modularly or in an integrated fashion depending upon client needs. These would include news, information, data, tools, models, opinions and advisory services and products and would aim at facilitating investment and risk management. This is expected to help your Company reach a wider clientele and bring value added products & services to them.
D. Research and Information Services

Your Company has recorded significant growth in revenues, despite the economic slowdown in India and globally, cost-cutting measures by market players. An information support product was developed for banks to support their
11
credit risk assessment models. Strengthening the information content, increasing the frequency of updation, greater client interaction and awareness creation has enabled the Company to retain a majority of its clients, enhance the value of relationships with existing clients and also add a large number of new clients. Your Company also widened the delivery platforms to include the internet, leased lines and international information platforms. These developments both on the diversity and intensity of research and technological upgradation makes your Company, by far, the foremost supplier of business intelligence.
E. Strategic review
During the year, CRISIL undertook a strategic review of its businesses and as an outcome of the exercise, the organisation is now better focused both in the market place and within. Position gaps within the organisation have been filled with senior level recruitments and significant progress has been made in exploiting the synergies between the businesses.
F. Relations with Standard & Poors

Crisils association with Standard and Poors (S&P) continues to remain active. The ratings division undertook specific projects for S&P in the East Asian region and USA. The work carried out by the division was well appreciated by S&P and it is expected that going forward, more such assignments would be forthcoming. Crisil continues to benefit by sending its analysts for traning in the execlusive S&P University. Crisil and S&P continue to conduct joint business and product promotion.
G. Subsidiaries
The audited accounts of the subsidiaries viz. Crisil.Com Limited, Crisil Research and Information Services Limited, Crisil Properties Limited and Global Data Services of India Limited, together with the report of the Directors and Auditors for the year ended March 31, 2002, as required under Section 212 of the Companies Act, 1956, are attached.
H. Joint Ventures
India Index Services & Products Ltd., CRISIL s 50:50 joint venture with the National Stock Exchange, made significant progress in popularising the usage of its indices as a benchmark for measurement of performance by mutual funds and international information disseminating agencies. Due to aggressive marketing by IISL, there are 11 index funds and index-related funds based on S&P CNX Nifty as against four at the beginning of the financial year 2001-02. More and more mutual funds have evinced an interest in floating index funds on S&P CNX Nifty. The turnover of index-based derivatives on S&P CNX Nifty, which are being traded on the National Stock Exchange, has been steadily improving each month. As in most developed markets where the derivatives market is many times larger than the underlying cash market, the Indian market for index-based derivatives is expected to grow more than twice the size of the capital market in the next few years and this will result in greater revenue for IISL in the coming years.
12
Report 15th Annual 2001 - 2002 I. Facilitation

During the year, all of CRISILs Mumbai based employees moved to CRISIL House at Andheri (East), Mumbai. This has resulted in optimum space utilisation and better co-ordination among the different groups. All the residential properties located in Worli, Mumbai, have been sold and the office premises located in Worli and Prabhadevi, Mumbai, have been leased. The main focus has been on consolidation, cost control and optimum utilization of resources. Implementation of systems and policies have already begun to show positive results.
J. Human Resources
The staff strength as on March 31, 2002 stood at 243 (including 160 professionals) as against 252 (including 152 professionals) as on March 31, 2001. CRISIL continues to attract new talent at all levels of management and the total number of new recruits this year was 57. Due to various initiatives undertaken and also due to a tight employment market, the attrition rate during the year dropped to 15% this year. The Performance Management System was further refined and implemented. This has resulted in a better definition of roles and a clear linkage of variable pay to performance. The CRISIL Young Thought Leader (CYTL) Series was a new initiative in the current year to build franchise at the premier management institutes in the country. Planned as an annual event, the CYTL Series seeks to honour young leaders for their original thought-provoking ideas. The initiative generated widespread response amongst management students. Your Company is committed to effective training as a necessary tool for augmenting functional and inter-personal skill-sets and fostering team spirit. During the year, your Company intensified in-house programmes and initiated a number of training programmes aimed at developing its strategic capabilities. In order to prepare itself for the global market place, CRISIL has started imparting foreign language training to its employees. This will prepare the organisation for international assignments. Information as per Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed and forms part of this report. The details of foreign exchange earnings and outgoings appear at item nos. 11 and 12 in Schedule L of the Notes to Accounts.
K. Technology
CRISIL continues to deploy technology to increase efficiency in operations, deliver business solutions to clients and reduce cost of operations. Technology infrastructure upgradation during the year supported efficiency increases. Voice communication between CRISILs various offices carried on through a lease-line network contributed to substantial savings. Business workflow application software, which has been in operation for more than a year now, has completely automated the functioning of all divisions of CRISIL. The same has resulted in capturing vital business information and an MIS module has been implemented during the financial year for generating reports required by the Management and heads of different business groups. The crisil.com website was enhanced with live news coverage of the financial sector contributed by the Crisil Market Wire team. Crisilbudget.com, a special site, was launched to service the information requirements related to the Union Budget. This, alongwith CRISIL s views on CNBCs live coverage of Finance Ministers Budget Speech, generated enormous visibility and goodwill for CRISIL. Both these initiatives requiring real time connectivity and response to a large traffic were possible because of technology support.
13
L. Directors
Dr. S. S. Baijal and Mr. Robert Maitner relinquished their office on October 24, 2001. Your Directors wish to place on record their sincere appreciation of the valuable contribution made by them to CRISIL. Mr. Edward Emmer, who was appointed as an Additional Director, holds office upto the date of the ensuing Annual General Meeting and is eligible for appointment. The Company has received notice under Section 257 of the Companies Act, 1956 proposing the candidature of Mr. Edward Emmer as a Director. In accordance with the Articles of Association of the Company and the provisions of the Companies Act, 1956, Mr. B. V. Bhargava, Dr. Bala V. Balachandran and Ms. Rama Bijapurkar retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. Mr. A. V. Rajwade retires by rotation at the ensuing Annual General Meeting. He has been a Director of your Company for 14 years. Pursuing good corporate governance principles, Mr. A. V. Rajwade has decided not to offer himself for reappointment. Mr. R. Ravimohan, Managing Director of your Company, was reappointed as Managing Director at the meeting of the Board of Directors held on April 26, 2002, for a period of 5 years with effect from October 1, 2002, subject to the approval of shareholders. Ms. Roopa Kudva was appointed as additional Director (designated as Executive Director & Chief Rating Officer) by the Board of Directors for a period of 5 years with effect from April 26, 2002, subject to the approval of shareholders. Ms. Roopa Kudva holds office upto the date of the ensuing Annual General Meeting and is eligible for appointment. The Company has received notice under Section 257 of the Companies Act, 1956 proposing her candidature as a Director.
Auditors
Messrs S. B. Billimoria and Co., Chartered Accountants, will retire as Auditors at the ensuing Annual General Meeting and are eligible for reappointment.
Directors Responsibility Statement as required under the provisions contained in Section 217(2AA) of the Companies Act, 1956
Your Directors hereby confirm that : (i) (ii) in the preparation of the annual accounts, the applicable accounting standards have been followed. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. the Directors have prepared the annual accounts on a going concern basis.
(iii)
(iv)
Employee Stock Option Plan (ESOP)

At the fourteenth Annual General Meeting held on August 2, 2001, the shareholders approved the ESOP for the employees and whole-time Directors of the Company and its subsidiaries. During the year, 56,300 options
14

were granted to the employees and senior management (which includes Wholetime Directors and Directors of business units). Details of such options granted under ESOP are given below: Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Description Options granted during the year The pricing formula Options vested as of March 31, 2002. Options exercised during the year Money raised on exercise of options Options lapsed during the year Total number of options in force at the end of the year Grant to senior management Employees holding 5% or more of the total number of options granted during the year Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. Details 56,300 options Rs. 105.55. This is 100% of fair market value on date of grant. Nil N.A. N.A. N.A. N.A. No. of options 34,300 NIL NIL
Acknowledgements
The Board of Directors wish to thank the employees of CRISIL for the exemplary dedication and excellence displayed in manning the operations of your Company. They also wish to place on record their sincere appreciation of the faith reposed in the professional integrity of the Company by the issuers and investors who patronised its services. They acknowledge the splendid support provided by the market intermediaries. The affiliation with Standard & Poors has been a source of redoubtable strength. The Board of Directors also wish to place on record their appreciation of the faith reposed in your Company by the Securities and Exchange Board of India, the Reserve Bank of India and the Government of India and various State Governments. The role played by the media in highlighting the good work done by your Company is indeed deeply appreciated. On behalf of the Board of Directors B. V. Bhargava Chairman
Mumbai, April 26, 2002.
15
Statement pursuant to section 217(2A) of the Companies Act, 1956 and the Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors Report for the year ended March 31, 2002.
Name of the Employee Anjali Forbes Hemant Joshi Mukarram Bhagat Designation/ Nature of Duties Qualification Age Experience (Years) (Years) 41 50 47 18 24 19 Date of Commencement of Employment July 8, 1989 April 13, 1992 March 31, 2000 Remuneration Received (Rs.) 2,443,551 3,785,863 3,693,363 Previous Designation Accounts Manager Manager Sr. Vice President Assistant Manager Chief Executive Employment Company Grindlays Bank S.B. Billimoria & Co. Dresdner Kleinwort Benson Eicher Motors Ltd. OTC Exchange of India
Director - CAS B.Com., MBA Executive Director CEO Net Initatives Director Strategic Initiatives Managing Director Director Finance & Facilitation Director & Chief Rating Officer B.E. (Hons.), PGDIE B.A., MMS
Paul Kurias
B.Com, MBA
33
11
November 8, 1991
2,454,093
R. Ravimohan Rajat Dutta*
B. Tech., MFM, 44 AMP (Harvard) B.Com., FCA, FCS, LLB B.Sc., PGDM 42
21 16
October 1, 1994 Sept. 30, 1993
4,464,317 1,045,344
AGM (Finance) Torrent Gujarat & Comp. Bio Tech Ltd. Secretary Deputy Manager IDBI
Roopa Kudva
38
14
November 9, 1992
3,123,058
Notes : 1) Nature of employment is contractual for all employees. Other terms and conditions are as per the Companys Rules. 2) None of the above employees is related to any of the Directors of the Company. 3) Remuneration received includes basic salary, house rent allowance, city compensatory allowance, commission/profit share, value of rent free accommodation, Companys contribution to provident fund, contribution to superannuation & gratuity funds, leave travel allowance, medical and other reimbursements as per the Rules of the Company. 4) Designation, nature of duties are as on March 31, 2002. 5) * indicates employment for a part of the year. On behalf of the Board of Directors B.V. Bhargava Chairman
Mumbai, April 26, 2002
16
AUDITORS CERTIFICATE
TO THE MEMBERS OF THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED We have examined the compliance of conditions of corporate governance by THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED for the year ended on 31st March, 2002 as stipulated in clause 49 of the Listing Agreement of the said Company with stock exchanges. The compliance of conditions of corporate governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of corporate governance as stipulated in the above mentioned Listing Agreement. As required by the Guidance Note issued by the Institute of Chartered Accountants of India, we have to state that no investor grievance is pending for action to be taken by the Company for a period exceeding one month against the Company as per the records maintained by the Investors Grievance Committee. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.
For S.B. BILLIMORIA & CO. Chartered Accountants
Mohammed Z. Merchant Mumbai, April 26, 2002 Partner
17
ANNEXURE TO THE DIRECTORS REPORT

Management Discussion and Analysis Report
Business and Industry Overview
CRISIL is Indias first and the only listed credit rating agency involved in the business of rating corporate debt obligations such as debentures, preference shares, fixed deposits, commercial paper, structured obligations etc. It has over the years continued to innovate and consistently introduced new rating services for entities such as state governments, municipalities, banks, non-banking financial Companies, infrastructure sector projects, insurance Companies and mutual funds. CRISIL has always been the first rating agency to introduce rating criterion for new debt securities and structures in the country. CRISIL pioneered the concept of credit rating in the country and is the leader in the ratings business. CRISIL ratings are widely accepted, considered to be fair, consistent, timely and reliable indicators of risks associated with investment decisions. CRISIL has assisted in the setting up of the first rating agencies in Malaysia and Israel. Apart from rating debt instruments, CRISIL is also involved in providing research, information and advisory services to corporates, banks, financial institutions, Central and State Governments. CRISIL has also carried out special assignments for the World Bank, Asian Development Bank and international investment banks. The core competence of CRISIL enables it to compete effectively in other synergistic business activities which can further enhance the earnings potential. Year ended March 31 Net Worth (Rs. Lacs) PAT (Rs. Lacs) Operating Margin (Rs. Lacs) RONW (%) 1998 4,138.94 991.72 1,580.79 23.96 1999 5,018.26 1,250.31 2,111.32 24.92 2000 5,938.91 1,291.63 1,581.13 21.75 2001 6,537.09 966.44 1,030.71 14.78 2002 7,104.36 1,307.75 3,361.42 18.41
Analysis of financial condition and results of operations

The accompanying financial statements have been prepared in accordance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles and accounting standards prevailing in India. The
18

management of CRISIL accepts the responsibility for the integrity and objectivity of these financial statements as well as for various estimates and judgements used therein.
A. Financial Condition
1. Fixed Assets : At the end of the year, Companys investment in fixed assets was as under : Year ended March 31 Gross Block (Rs. Lacs) 1998 3,775.68 1,999 3,469.78 2000 4,087.20 2001 6,098.18 2002 6,894.78
The composition and growth of assets was as under : Particulars Goodwill Trademarks Copyrights Buildings Furniture & Fixtures Office Equipments Computers Vehicles Leased Assets Total Less : Accumulated Depreciation Net Block Add : Capital Work in Progress Net Fixed Assets Depreciation as a % of Total Revenue Accumulated Depreciation as % of Gross Block March 31, 2002 Rs in lacs 89.59 654.30 17.30 3070.99 705.12 629.09 1421.04 212.35 95.00 6,894.78 2382.21 4,512.57 52.27 4,564.84 10.12% 34.55% March 31, 2001 Rs in lacs 89.59 654.30 17.30 2,998.69 491.36 461.33 1,154.99 135.62 95.00 6,098.18 1,766.89 4,331.29 15.00 4,346.29 10.44% 28.97%
19
Growth % ---2.41% 43.50% 36.36% 23.03% 56.58% -13.06% 34.83% 4.19% 248.47% 5.03%
During the year Company added Rs. 963.44 lacs to its gross block of assets. Consolidation of three offices of the Company in Mumbai into one office was completed during the year resulting in optimum space utilisation and better co-ordination. This resulted in a major increase in addition in the block of Office Equipment and Furniture & Fixtures. The major increase in the block of Computers was on account of software development expenditure incurred in connection with launching of new website and improving its functionality making it highly scalable to future requirements. The Capital Work-in-Progress represents advances paid towards acquisition of fixed assets and the cost of assets not put to use. The increase in Capital Work-in-Progress was on account of construction of additional floor at Companys new office at Mumbai. The depreciation as a percentage of revenue was marginally lower at 10.12% as against 10.44% in the last year while accumulated depreciation as a percentage of Gross Block increased from 28.97% to 34.55%. This was mainly due to operationalisation of new office premises in Mumbai and launching of new website. The Company estimates that it will be able to fund its investments in fixed assets and infrastructure from its internal accruals and liquid assets. However, it may take recourse to borrowing to fund such capital expenditure, if considered necessary.
2. Investments:
During the year, the Company made strategic investments of Rs. 175 lacs in the equity shares of Crisil.com Ltd., its wholly owned subsidiary. The subsidiary incurred a loss of Rs. 164.04 lacs primarily due to long gestation period involved in the business and also due to adverse conditions prevailing in the web related business. The Company also made strategic investment of Rs. 40 lacs in the joint venture India Index Services and Products Limited. The venture is expected to progress with the increased interest in the derivatives trading. The short term surplus funds of the Company were invested in money market mutual funds. The financial statements of the subsidiaries appear elsewhere in this annual report.
3. Current Assets :
Cash & Cash equivalents: Cash and cash equivalents were 6% of total assets as on March 31, 2002 as against 9% as on March 31, 2001.
Sundry Debtors:
Sundry Debtors were Rs 719.72 lacs as at March 31, 2002 as against Rs 639.65 lacs as at March 31, 2001. Debtors, as a percentage of total operating revenue, were lower at 10.53% for the current year as against 14.54% for the previous year representing an outstanding of 38 days and 53 days of operating revenue for the respective years. The break-up of debtors relating various services is as under : As on March 31 2002 (Rs. lacs) Rating Services Advisory Services Research & Information Services Others Total
20
% 27.67% 31.44% 40.89% -100.00%
As on March 31 2001 (Rs. lacs)
Change
199.12 226.28 294.32 -719.72
203.17 31.76% -1.99% 259.25 40.53% -12.72% 130.23 20.36% 126.00% 47.00 7.35% -639.65 100.00% 12.52%

The increase in debtors relating to research & information services was on account of major renewals falling due towards end of the year. During the year Company has written off an amount of Rs. 91.75 lacs as bad debts as against Rs. 61.72 lacs in the previous year. The agewise analysis of debtors is as follows : Total Rating Services Advisory Services Research & Info Services Total 199.12 226.28 294.32 719.72 2001-02 171.06 204.83 286.00 661.89 2000-01 21.51 17.57 8.32 47.40 Rs. lacs 1999-2000 6.56 3.87 -10.43
Loans & Advances :

Loans and advances comprise of loans to staff, advances recoverable in cash or kind, sundry deposits and advance taxes paid. The Company has a policy of giving loans to staff to enable the employees to purchase assets. Major decrease in loans was on account of discontinuance of certain loan scheme. Advances recoverable in cash or kind or for value to be received are mainly towards amounts paid in advance for value and services to be received in future. Major decrease in the advances was on account of recovery of loan given to Crisil Staff Trust. Sundry deposits represent deposits for premises taken on lease and telephone and electricity deposits. Major decrease in advance taxes was on account of charging of past taxes paid under protest to the Profit and Loss Account consequent upon change in the method of accounting as mentioned in note 9 of schedule L.
4. Current Liabilities & Provisions :

Current Liabilities Sundry Creditors include amounts payable to vendors for supply of goods and services, provision for bonus payable to the staff and commission payable to the Directors. Advances received from client include fees received for which services have not yet been rendered. Other liabilities include unearned revenue at the year end which pertain to services to be rendered in the next financial year for which related costs were not yet incurred. Provisions Provision for leave encashment represents the Companys liability for leave encashment valued on an acturial basis. Proposed dividend represents the dividend recommended to the shareholders by the Board of Directors and would be paid after the Annual General Meeting upon approval by the shareholders. During the year, the Company has created a Provision for Contingencies amounting to Rs. 50 lacs which, in the opinion of the management, is considered necessary, adequate and prudent to provide, inter alia, for possible losses, expenses or claims arising out of disputes on conduct of business.
B. Results of operations :
The summary of the operating performance for the year is given below. The operating income of the Company grew by 51.83% during the year and operating profits grew by 102.26% analysis of which is given below.
21
Results of Operations
(Rs in Lacs) Year ended March 31, 2002 Amount 6,677.37 160.80 91.29 Year ended March 31, 2001 Amount 4,397.83 168.60 587.30 Growth % 51.83% -4.63% 34.46%
Particulars
% 96.36% 2.32% 1.32%
% 85.33% 3.27%
Income
Income from Operations Other Income Extraordinary Items Total Income
11.40% -84.46%
6,929.46 100.00%
5,153.73 100.00%
Expenses
Staff Expenses Establishment Expenses Other Expenses Extraordinary Items Operating Expenses Profit before Extraordinary Items Provision for Contingencies(made)/written back Profit before Depreciation & Tax Less : Depreciation Profit before Tax Less : Income Tax arrears Less : Provision for Taxation Profit after Tax 1,538.60 635.97 1,141.37 -3,315.94 3,613.52 (50.00) 3,563.52 701.25 2,862.27 524.51 1,030.00 1,307.76 22.20% 9.18% 16.47% -47.85% 52.15% -51.43% 10.12% 41.31% 7.57% 14.86% 18.87% 1,245.42 605.57 1,111.53 404.61 3,367.13 1,786.60 90.00 1,876.60 538.16 1,338.44 -372.00 966.44 36.41% 10.44% -18.75% 24.17% 11.75% 21.57% 7.85% 65.33% 23.54% 5.02% 2.68% --1.52% -155.56% 89.89% 30.31% -35.32%
34.67% 102.26%
25.97% 113.85% 7.22% 176.88%
1.
Income
(Rs in Lacs) Year ended March 31, 2002 Amount 4943.11* 1196.41 537.84 Year ended March 31, 2001 Amount 2837.09 1073.52 487.23 Growth % 74.23% 11.45% 10.39% 51.83%
Particulars Rating Services Advisory Services Research & Information Services Total
% 74.03% 17.92% 8.05%
% 64.51% 24.41% 11.08%
6677.36 100.00%
4397.84 100.00%
* Includes Income of Rs. 682.83 lacs due to change in accounting policy (Note 9, schedule L of Accounts.)
22
Year ended March 31 Total Instruments No. Volume (Rs. Crore)
1997-98 573 50,357
1998-99 327 16,329
1999-2000 283 31,090
2000-01 272 53,013
2001-02 328 70,441
1. Expenses
Staff Expenses : Year ended March 31 Number of Employees Revenue per employee (Rs. Lacs) Profit per Employee (Rs. Lacs) 1998 205 17.57 7.54 1999 197 20.41 10.58 2000 202 19.97 9.52 2001 252 20.45 5.31 2002 243 28.52 11.78
23
Particulars Salaries & Bonus Contribution to Provident & Other Funds Staff Training and Welfare Expenses Total staff Cost Revenue
Year ended March 31, 2002 Rupees (in lacs) 1338.88 82.74 116.98 1538.60 6929.46
% 19.32% 1.19% 1.69% 22.20% 100%
Year ended March 31,2001 Rupees (in lacs) 1058.21 70.90 116.31 1245.42 5153.73
% 20.53% 1.38% 2.26% 24.17% 100%
Growth % 26.52% 16.70% 0.58% 23.54% 34.46%
The key challenge for the Company is to retain people and to improve organisational productivity and effectiveness and also to skill and re-skill people in line with the fast changing organisational goals in the context of globalisation and competition. The Company was able to achieve high growth during the year without additional manpower. This improvement in productivity was achieved through implementation of process improvements and automated workflow systems. The Company has made its salary structure competitive and has linked it to individual and business performance. The Company also refined its performance management system and stepped up training efforts for its staff. The staff strength stood at 243 as against 252 at the end of previous year.
Establishment expenses :
Particulars Repairs and Maintenance - Buildings - Others Electricity Postage & Mailing Expenses Communication Expenses Insurance Rent Rates & Taxes Total Establishment Cost Revenue
24
Year ended March 31, 2002 Rupees (in lacs) 120.85 80.67 85.86 21.83 115.36 23.19 163.21 25.00 635.97 6929.46
% 1.74% 1.16% 1.24% 0.32% 1.66% 0.33% 2.36% 0.36% 9.18% 100%
Year ended March 31, 2001 Rupees (in lacs) 59.65 84.22 89.19 19.85 218.32 19.63 95.96 18.75 605.57 5153.73
Growth % 1.16% 1.63% 1.73% 0.39% 4.24% 0.38% 1.86% 0.36% 11.75% 100% % 102.60% -4.22% -3.73% 9.97% -47.16% 18.14% 70.08% 33.33% 5.02% 34.46%

Although establishment expenses as a percentage of total revenues decreased marginally from 11.75% to 9.18%, the growth of 5.02% over last year was on account of higher expenses incurred due to operation of multiple office premises for part of the year. The initiatives taken by the Company to control costs and optimise utilisation of resources has started showing positive results. The use of leased lines for internal communication and measures taken to control communication costs have resulted in decrease of these expenses by 47%. The increase in establishment related costs is expected to abate the following year due to optimum utilisation of office space. Other Expenses : Particulars Printing and Stationery Conveyance Foreign Travel (Business) Foreign Travel (Training) Inland Travel Books and Periodicals Vehicle Expenses Remuneration to Non-wholetime Directors Business Promotion and Advertisement Preliminary Expenditure Written off Professional Fees Software Purchase & Maintenance Exp Bad Debts Written off Auditors Remuneration Miscellaneous Expenses Total Revenue Year ended March 31, 2002 Rupees (in lacs) 98.94 15.05 69.49 15.86 90.42 25.98 35.03 35.85 26.67 7.52 522.62 82.15 91.75 2.77 21.27 1,141.37 Year ended March 31, 2001 Rupees (in lacs) 119.08 13.71 42.60 31.42 118.73 24.01 30.62 34.7 47.4 7.52 445.98 120.71 61.72 2.01 11.33 1,111.54 5153.73 Growth % 2.31% 0.27% 0.83% 0.61% 2.30% 0.47% 0.59% 0.67% 0.92% 0.15% 8.65% 2.34% 1.20% 0.04% 0.22% 21.57% 100% % -16.91% 9.77% 63.12% -49.52% -23.84% 8.20% 14.40% 3.31% -43.73% -17.18% -31.94% 48.66% 37.81% 87.73% 2.68% 34.46%
% 1.43% 0.22% 1.00% 0.23% 1.30% 0.37% 0.51% 0.52% 0.38% 0.11% 7.54% 1.19% 1.32% 0.04% 0.31% 16.47%
6929.46 100.00%
The increase in foreign travel expenses was on account of the increased levels of travel undertaken with the objective of globalising operations of your Company. The major increase in professional fees was on account of outsourcing charges paid to wholly owned subsidiaries of the Company for supporting the operations of the Company as well as a network of professionals engaged by the Company to augment its business prospects.
Interest
The Company continued to be debt-free during the year and therefore did not incur any interest expense.
Depreciation
The depreciation provided by the Company increased sharply from Rs. 538.16 lacs to Rs. 701.25 lacs on account of operationalisation of new office premises at Mumbai and Delhi and launching of new website during the year. Depreciation represented 10.12% of the revenues in the current year and 10.44% of the revenues in the previous year.
25
Risk Management
CRISIL faces following types of risks in its business operations.
Business risks
Business risk primarily arises out of excessive dependence on ratings business. To mitigate this risk, the Company has adopted a strategy of launching innovative rating products, globalisation of operations and diversification into advisory and research and information businesses. The strategy has yielded good results and non-rating businesses have been making steady progress. To address the risk of excessive dependence on few large clients and few sectors in ratings business, the Company actively attempts to diversify client base and industry segments. However, high repeat business from large clients contributes significantly to revenues in rating services. In advisory services business, the risk arises primarily on account of acute competition prevailing in this business segment and dependence on a relatively small client base.
Financial risks
CRISIL has been a debt free Company right since the date of incorporation. The Company has followed the strategy of funding all its diversification and infrastructure related expenditure through internal accruals. Liquidity enables the Company to settle its payables within stipulated time frames and claim cash discounts.
Legal & statutory risks

The Company has no material litigation in relation to contractual obligation pending against it in any court in India or abroad. The Company Secretary functions as a Compliance Officer to advice the Company on compliance issues with various laws in the country and ensures that the Company does not violate the same. The Compliance Officer reports on the compliance or otherwise of the laws of various jurisdictions at every Board meeting. The Company also seeks independent legal advice wherever needed. The Company also maintains adequate contingency provision to provide, inter alia, for possible losses, expenses or claims arising out of disputes on conduct of business.
Internal processes risks

The Company has carried out extensive automation of business processes across all the locations to ensure protection of knowledge base existing within the Company. CRISIL s Centres of Excellence, the policy research and rating quality assurance wing of the rating division, assists in designing and refining rating methodologies and facilitates knowledge accumulation and dissemination. The Company also has adequate disaster prevention and recovery system in place in the area of technology. This is reviewed and updated periodically. All software media purchased by the Company are scanned for viruses before use. The Company has firewalls in place in all connections to the clients and internet.
Audit and Internal Controls

CRISIL has well established processes and clearly defined roles & responsibilities for people at various levels. This, coupled with adequate internal information systems embedded in a business automation software, ensures proper information flow for the decision making process. Adherence to these processes is ensured through frequent internal audits. Business operations are monitored through regular reviews of budgets by Management Committee.
26

The internal control procedure is augmented by an extensive program of internal audits, review by the Audit Committee and requisite guidelines and procedures. The internal control system is designed to ensure that the financial and other records are reliable for preparing financial statements and other information. These procedures ensure that all transactions are properly reported and classified in the financial records.
Political risks
The major source of CRISIL s revenue is from rating services, which depend on several factors including Government policy. At present, rating is mandatory for all public offerings of debentures, except where the conversion/redemption is within 18 months. Ratings are also mandatory for all commercial paper issuances. The present Government policy is directed towards meeting the resource requirements for investments through resource mobilisation from the capital markets. The Governments favourable disposition towards credit rating has resulted in credit rating remaining a focussed area. However, to mitigate this risk the Company has adopted the strategy of increase in globalisation of its operations and diversification into advisory and research and information business. The Company has also successfully reduced dependence on the mandated business by building a strong franchise and creating risk consciousness among investors by holding investor meets and seminars. The above discussion contains forward looking statements which may be identified by their use of words like plans, expects, will, anticipates, intends, all statements that address expectation and projection about the future including but not limited to statements about the Companys strategy for growth, product development, market development, market position, expenditures and financial results. These forward looking statements are based on certain assumptions and expectation of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual result or performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments information or events.
27
REPORT OF THE DIRECTORS ON CORPORATE GOVERNANCE

CRISIL has over the years been practicing the principles of good corporate governance. CRISIL has adopted the best global practices for corporate governance, disclosure standards and enhancing shareholder value while protecting the interest of other stakeholders including interests of clients, employees and its suppliers. CRISIL, in pursuit of the very fundamentals of good governance, went public in 1993, to disperse shareholding to a wider base, so that there is no concentration of holding, which may seek to influence its ratings process. The Directors on the Board of Directors of your Company are eminent persons of proven competence and integrity. The Directors present below the Companys policies on corporate governance.
BOARD OF DIRECTORS :Size of the Board The Board of Directors has ten members including an alternate Director. As per the Articles of Association of the Company, the Board can have up to fifteen members. Memberships of other Boards Executive Directors are serving on the Board of subsidiaries of CRISIL. Independent Directors are not expected to serve on the Boards of competing Companies. Membership Term As per the Articles of Association of the Company, at least two thirds of the Board of Directors should be retiring Directors. One third of these Directors are required to retire every year and if eligible, the retiring Directors qualify for re-appointment. The Board has adopted the following guidelines regarding appointment and tenure of a non-executive Director on the Board. 1. 2. No Director should generally hold Directorships in more than 10 Companies. Every Director is expected to attend atleast 60% of the Board meetings held in a year. While re-appointing Directors on the Board and Committees of the Board, the attendance record of the concerned Director should be considered. Any Director who has been on CRISIL s Board for more than 10 years should not normally continue to hold the office as a Director of CRISIL. The change of Directors on the Board of CRISIL, if carried, would be so accomplished that at no point of time the average number of members on the Board is reduced unreasonably. Any individual who is a Director of an entity, which holds more than 10% of the equity share capital of CRISIL, should not hold the office as a Director of CRISIL. Any individual who is a Director of a Company rated by CRISIL or who is a Director of the Company which is a borrower of an entity holding more than 10% of the equity share capital of CRISIL should not hold the office as a Director of CRISIL. CRISIL would not rate the securities publicly issued by the Company where there is existence of common Directors on the Board.
3.
4. 5.
28

The Executive Directors are appointed by the shareholders for a maximum period of five years but can be re-appointed on completion of their term, if eligible. The appointments of Mr. R. Ravimohan, Managing Director is upto September 30, 2002 and Mr. Hemant Joshi, Executive Director is upto May 13, 2006.
Criteria for Board membership/Selection process

The Board be comprised of individuals with certain personal characteristics and core competencies such as recognition of the importance of the Boards tasks, integrity, a sense of accountability, track record of achievements and the ability to ask tough questions. Besides, having financial literacy, experience, leadership qualities and the ability to think strategically, the Directors must show significant degree of commitment to the Company and devote adequate time for meeting, preparation and attendance. Board members are expected to possess the education, expertise, skills and experience required to manage and guide the Company from various sectors / industries. Expertise in Finance, Strategy, Quality or Human Resources is essential. Each Board member is expected to ensure that their other current and planned future commitments do not materially interfere with the members responsibility as a Director of CRISIL. They will not be relatives of an Executive Director or of an independent Director. They are expected not to serve in any independent or executive position in any Company that is a direct competitor. Executive Directors are excluded from serving on the Board of any other entity unless the said entity is an industrial entity whose interests are germane to the business of a similar industry.
Succession Policy
The Board constantly evaluates the contribution of its members and recommends to shareholders their re-appointment periodically as per statute. The current law in India mandates the retirement of one-third of the Board members every year and qualifies the retiring members for re-appointment. The Executive Directors are appointed by the shareholders for a maximum period of five years at one time, but are eligible for re-appointment upon completion of their term. The non-executive Directors do not have any term, but retire by rotation as per law. The Board has adopted a retirement policy for its members. Under this policy, any Director who has been on CRISILs Board for more than 10 years should not normally continue to hold the office as a Director of CRISIL. The maximum age of retirement of Executive Directors is 58 years, which is the age of superannuation for the employees of the Company.
Responsibilities
The Board looks at strategic planning and policy formulation. The Board meets atleast once in a quarter to review the quarterly performance and financial results. During the year under review, the Board met six times. All the Board meetings held during the year were well attended. The non-executive Directors play an important role at the Board meetings.
Responsibilities of the Managing Director and the Executive Director

The Company has a Managing Director and two Executive Directors with proper demarcation of responsibilities and authority. The Managing Director is responsible for corporate strategy, planning, external contacts and Board matters.
29
The Executive Director is responsible for all day-to-day operations-related issues, acquisitions, profitability, productivity, recruitment and employee retention.
Remuneration to the Non-Executive Directors

The Non-Executive Directors are paid sitting fees for each meeting attended by them and they are also eligible for commission. The commission payable to each of the non-executive Directors is limited to a fixed sum per year as determined by the Board and is revised from time to time depending on individual performance, Company performance and prevailing norms. The aggregate of these is within the limit of 3% of the net profits of the Company for the year, calculated as per the provisions of the Companies Act, 1956.
Remuneration Policy Managing Director/Executive Director and other employees of the Company:
The remuneration and reward structure for the Executive Directors and employees of CRISIL (hereinafter referred to as full time employees) comprises of two broad components - Short Term Remuneration and Long Term Rewards. The Compensation Committee determines the remuneration packages of the Executive Directors. The Compensation Committee comprises of three independent Directors. This compensation and reward structure is based on the following guiding principles. Short Term Remuneration Short term remuneration refers to the annual compensation payable to all full time employees of the Company. This comprises of two parts, the fixed component and the performance linked variable component.
q
Total remuneration will be set at levels to attract, motivate and retain high calibre and high potential personnel within a competitive global market. The total remuneration levels shall be reset annually based on a comparison with the relevant peer group in the Indian market. This shall normally be carried out by an independent consultant who does no other consulting work for CRISIL. The total remuneration shall comprise of fixed component and a performance based variable component. The benchmarked remuneration levels as advised by the consultants for various levels shall be broken down into fixed and variable parts. The variable part so determined shall be the meets level bonus for each employee. Every employee shall sign on a performance contract which shall clearly articulate the key performance measures for that particular defined role. The variable pay (bonus) shall be directly linked to the performance on individual components of the performance contract. An employees bonus can therefore be higher or lower than his/her meets level bonus directly dependent on his/ her performance during the year.
q q
q q
30

q
These key performance measures shall be those which will represent the best interests of stakeholders in the short, medium and long term. The remuneration levels and the performance contracts shall be finalised under the overall supervision, guidance and approval of the Compensation Committee comprising of only non-executive Directors.
Long term remuneration and rewards CRISIL s businesses are driven and directly determined by its people across all levels. CRISIL has been able to attract and retain the best talent in the industry and this ability is reflected in the Companys premier position in almost all businesses conducted by it. However, this talent pool is very attractive for other entities both in the financial sector and non-financial sector, which is an inherent vulnerability in Companys business. In order to mitigate this vulnerability to some extent and to retain employees over longer tenures, CRISIL has introduced a long term remuneration plan (LTRP). The CRISIL LTRP comprises primarily of Stock options which operate under the following guidelines :
q
All employees who have completed two full financial years of continuous service in CRISIL shall be eligible to receive stock options. The number of options to be assigned to a particular employee (eligibility) shall be determined based on the individuals contribution vis--vis his performance contracts over the years and his relative position in the organisation. Employees who have performed below expectations shall not be eligible for stock options. Each eligible employee shall be vested with options equal to his eligibility. Vesting of Stock options shall commence on the expiry of one year from the date of Grant. An employee, can exercise the option within a period of two years from the date of vesting. The options would be issued to eligible employees at a price as at the closing market price on the Stock exchange, which has recorded the highest trading volume on the date of Grant. The non-executive Directors are not eligible for participating in the Stock Option Scheme.
Dividend Policy
CRISIL believes in maintaining a fair balance between cash retention and dividend distribution. Cash retention is required to finance future growth and also as a means to meet any unforeseen contingency. CRISIL is also conscious of maintaining stability in its dividend pay-out over the years. CRISIL s current dividend policy is to distribute dividend in excess of its assessment of cash requirements over the next two years. The Board of Directors is of the view that retention of approx. Rs. 12 crores as at March 31, 2002 is desirable for the year 2001-02. This is based on the Managements estimate of cash requirements for continuing operations as well as potential requirement to finance future growth, both organic as well as inorganic. This leaves the Company with a
31
distributable cash of about Rs. 4 crores as at March 31, 2002 which is accordingly recommended for distribution translating into a dividend rate of 65% on the outstanding equity shares of the Company.
BOARD COMMITTEES
The Board has constituted Committees consisting of executive and non-executive Directors to focus on the critical functions of the Company.
Executive Committee
The Executive Committee comprises of three Non-Executive Directors, Mr. B. V. Bhargava (Chairman), Mr. A.V.Rajwade, Mr. M.G. Bhide and two Executive Directors, Mr. R. Ravimohan and Mr. Hemant Y. Joshi. Dr. S. S. Baijal, member of the Executive Committee relinquished office on October 24, 2001. The Committee approves policies and guidelines for operations of each business division, regularly reviews business conduct, approves new products criteria and parameters, opines on macro level reports on economy and industry, reviews ratings and reports on selective basis and peruses management information and suggests business re-orientation. Executive Committee met 11 times during the year on 23.04.2001, 22.05.2001, 19.06.2001, 17.07.2001, 20.08.2001, 25.09.2001, 23.10.2001, 22.11.2001, 27.12.2001, 22.01.2002 and 21.02.2002. The meetings were well attended by the members as stated below: Director Mr. B. V. Bhargava * Dr. S. S. Baijal Mr. A. V. Rajwade Mr. M. G. Bhide Mr. R. Ravimohan Mr. Hemant Joshi No. of committee meetings held 11 11 11 11 11 11 No. of committee meetings attended 9 5 10 10 10 11
* Dr. S. S. Baijal relinquished office on October 24, 2001
Audit Committee
The Audit Committee comprises of non-executive Directors who are well versed with corporate laws. The Chairman of the Audit Committee is Mr. B. R. Shah and its other members are Dr. S. A. Dave and Mr. M. G. Bhide. Dr. S. S. Baijal, Chairman of the Audit Committee, relinquished office on October 24, 2001. Mr. M. G. Bhide was appointed member of the Committee on November 24, 2001. The Committee reviews the adequacy of internal audit function, reporting structure coverage and frequency of internal audit. The Committee also reviews the audit plans, audited and unaudited financial results, the findings of the internal as well as statutory auditors and action taken reports of the management. Audit Committee met four times during the year on 27.04.2001, 24.07.2001, 24.10.2001, and 03.01.2002. The meetings were well attended by the members as stated below:
32

Director *Dr. S. S. Baijal Dr. S. A. Dave Mr. B. R. Shah **Mr. M. G. Bhide No. of committee meetings held 4 4 4 4 No. of committee meetings attended 2 3 4 1
* Dr. S. S. Baijal relinquished office on October 24, 2001 ** Mr. M. G. Bhide appointed as member on November 24, 2001
Management Committee
The Board has delegated the operational powers to the Management Committee, which comprises of executive Directors. The Management Committee is responsible for managing the day to day affairs of the Company within the parameters laid down by the Board and various Committees.
Investment Committee
The Investment Committee comprises of three non-executive Directors, Mr. B. V. Bhargava (Chairman), Mr. A. V. Rajwade and Mr. M. G. Bhide and two executive Directors, Mr. R. Ravimohan and Mr. Hemant Y. Joshi. The Investment Committee lays down policy guidelines and procedures for investing funds of the Company and reviews the activity at regular intervals. Investment Committee met once during the year on 07.02.2001. The meeting was attended by members as stated below: Director No. of committee meetings held 1 1 1 1 1 No. of committee meetings attended 1 1 1 -1
Mr. B. V. Bhargava Mr. A. V. Rajwade Mr. M. G. Bhide Mr. R. Ravimohan Mr. Hemant Joshi
Investors Grievance Committee

The Investors Grievance Committee comprises of one non-executive Director, Mr. B. R. Shah (Chairman) and two executive Directors, Mr. R. Ravimohan and Mr. Hemant Joshi, which periodically reviews the status of investor grievances and redressal mechanism. Investors Grievance Committee met 5 times during the year on 11.04.2001, 10.07.2001, 20.09.2001, 23.11.2001 and 22.02.2002. The meetings were well attended by the members as stated below:
33
Director
No. of committee meetings held
No. of committee meetings attended 5 5 5
Mr. B. R. Shah Mr. R. Ravimohan Mr. Hemant Joshi
5 5 5
Compensation Committee
The Compensation Committee comprises of three non-executive Directors, Mr. B. V. Bhargava (Chairman), Dr. S. A. Dave and Mr. B. R. Shah. The Committee ensures that a proper system of compensation is in place to provide performance-based incentives to all employees of the Company. The Committee considers and approves salaries, commission and other emoluments for the Executive Directors and employees of the Company. The annual compensation of the Executive Directors is determined by the Compensation Committee within the limits set by the shareholders at the general meetings. It also recommends the commission for non-Executive Directors to the Board for its consideration. The Compensation Committee met three times during the year on April 20, 2001, July 17, 2001 and August 2, 2001. The meetings were well attended by members as stated below: Director No. of Committee meetings held Mr. B.V. Bhargava Dr. S. A. Dave Mr. B.R. Shah 3 3 3 No. of Committee meetings attended 3 1 3
Compliance report on corporate governance 1.

1.1
Board of Directors
None of the non-executive Directors of the Company have any pecuniary relationships or transactions with the Company.
1.2
The Board comprises of majority of non-executive Directors. The non-executive Directors of the Company are eminent persons of proven competence and of professional calibre.
1.3
The Company pays a commission upto a maximum limit of 3% of the net profits calculated as per Section 198, 349 and 350 of the Companies Act, 1956. For the year ended March 31, 2002, the Company paid an amount of Rs. 31,00,000 to all non-executive Directors as remuneration.
1.4
As of March 31, 2002, non-executive and independent Directors constituted 80% of the Board. The Chairman is a non-executive and independent Director.
34

The number of other Directorships held by the Directors of CRISIL is given below: Director No. of other Directorships and Committee Memberships*/ Chairmanships held Directorships Committee Memberships 6 5 10 2 9 5 --1 1 Committee Chairmanships 4 1 5 2 4 ------
Mr. B. V. Bhargava Mr. M. G. Bhide Dr. S. A. Dave Mr. A. V. Rajwade Mr. B. R. Shah Ms. Rama Bijapurkar Dr. Bala V. Balachandran Mr. Edward Emmer Mr. R. Ravimohan Mr. Hemant Y. Joshi
9 5 11 6 10 4 1 1 6 5
* includes Audit Committee, Investors Grievance Committee and Compensation Committee.
Nominee Directors
The Company has no nominee Director.
Chairman of the Board

The Company has a non-executive Chairman, who is provided an office at Companys expense and reimbursed part of the expenses incurred in performance of his duties.
2. Audit Committee
2.1 2.2 The Board of Directors had constituted an independent Audit Committee on May 4, 1999. The Audit Committee currently comprises three members who are the independent and non-executive Directors on the Board. Dr. S.S. Baijal, Chairman of the Audit Committee relinquished office on October 24, 2001. The Chairman of the Committee, Mr. B.R. Shah, is an independent Director. The Chairman of the Audit Committee will be present at the ensuing Annual General Meeting. The head of finance remains present at all Audit Committee meetings. The external auditors of the Company are invited, when necessary, to attend the Audit Committee meetings to brief the members. The Company Secretary is the secretary of the Committee. The Audit Committee met four times during the year 2001 - 2002 on 27.04.2001, 24.07.2001, 24.10.2001, and 03.01.2002.
35
2.3
2.4 2.5
The Audit Committee consists of three members who are non-executive Directors of the Company. The prescribed quorum (minimum two) was present at all meetings of the Audit Committee. The Audit Committee derives its powers from the authorization of the Board. The Audit Committee has such powers and include powers: (i) To investigate any activity within its terms of reference. (ii) To seek information from any employee. (iii) To obtain outside legal or other professional advice. (iv) To secure attendance of outsiders with relevant expertise, if it considers necessary.
2.6
The Audit Committee acts as the bridge between the Board, the statutory auditors and internal auditors. The role of the Audit Committee covers the following functions :
q
Oversight of the Companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending the appointment and removal of the external auditor, fixation of audit fees and also approval for payment for any other services. Reviewing with management the annual financial statements before submission to the Board, focussing primarily on: Any changes in accounting policies and practices. Major accounting entries based on exercise of judgement by management. Qualifications in draft audit report. Significant adjustments arising out of audit. The going concern assumption. Compliance with accounting standards. Compliance with stock exchange and legal requirements concerning financial statements. Any related party transactions i.e. transactions of the Company of material nature, with promoters or the management, their subsidiaries or relatives, etc., that may have potential conflict with the interests of the Company at large.
q q
Reviewing with the management, external and internal auditors, adequacy of internal control systems. Reviewing the adequacy of the internal audit functions including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure, coverage and frequency of internal audit. Discussion with the internal auditors of any significant findings and follow-up thereon. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
q q
36

q
Discussion with external auditors, before the audit commences, of the nature and scope of audit. Also, post-audit discussion to ascertain any area of concern. Reviewing the Companys financial and risk management policies. Looking into the reasons for substantial defaults in the payments to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors.
q q
3.
3.1
Compensation Committee of the Board

The Company has set up a Compensation Committee of the Board. The annual compensation of the Executive Directors is determined by the Compensation Committee within the limits set by the shareholders at the general meetings. There are no Executive Directors on the Compensation Committee, and the Chairman is also an independent Director. The Chairman of the Compensation Committee was present at the last Annual General Meeting. The remuneration of the non-executive Directors is decided by the Board within the limits laid down by the shareholders of the Company at the Annual General Meeting and in accordance with other applicable laws. (In Rupees)
3.2 3.3 3.4
Remuneration paid to Non-executive Directors for the financial year 2001-02. Name of the Director Mr. B. V. Bhargava *Dr. S. S. Baijal Mr. M. G. Bhide Dr. S. A. Dave Mr. A. V. Rajwade Mr. B. R. Shah Ms. Rama Bijapurkar Dr. Bala V. Balachandran **Mr. Robert Maitner ***Mr. Edward Emmer Ms. Cecile Saavedra Total Variable Commission 7,00,000 1,50,000 7,00,000 2,75,000 3,00,000 2,75,000 2,75,000 2,75,000 1,50,000 --31,00,000 Sitting Fees 95,000 50,000 85,000 40,000 85,000 65,000 25,000 20,000 5,000 -15,000 4,85,000 Total 7,95,000 2,00,000 7,85,000 3,15,000 3,85,000 3,40,000 3,00,000 2,95,000 1,55,000 -15,000 35,85,000
* Dr. S. S. Baijal relinquished office on October 24, 2001 ** Mr. Robert Maitner relinquished office on October 24, 2001 *** Mr. Edward Emmer appointed as an Additional Director on October 24, 2001 No stock options were granted to the Non-Executive Directors.
37
Remuneration paid to Executive Directors for the financial year 2001-02. (In Rupees) Name Designation Salary Perquisites Variable Commission PF, Superannuation & Gratuity Total Notice period R. Ravimohan Managing Director 18,31,400 8,54,917 14,00,000 3,78,000 44,64,317 3 months Hemant Joshi Executive Director 16,45,800 5,37,663 13,00,000 3,02,400 37,85,863 3 months
Grant of stock option:

Name Mr. R. Ravimohan Mr. Hemant Joshi Designation Managing Director Executive Director No. of Options (ESOP) 7,000 5,000 Grant price Rs. 105.55 Rs. 105.55 Whether issued at a discount No No
No stock options were granted to the other Directors.
4.
4.1
Board procedures
The Board of Directors of the Company met six times during the year on 27.04.2001, 24.07.2001, 02.08.2001, 24.10.2001, 23.11.2001 and 03.01.2002. The meetings were well attended by the members as stated below: Director No. of Board meetings held 6 6 6 6 6 6 6 6 6 6 6 6 No. of Board meetings attended 6 3 5 4 6 6 5 4 1 -6 6 Last AGM attendance (Yes/No) Yes Yes Yes No Yes Yes Yes No Yes No Yes Yes
Mr. B. V. Bhargava * Dr. S. S. Baijal Mr. M. G. Bhide Mr. Dr. S. A. Dave Mr. A. V. Rajwade Mr. B. R. Shah Mr. Rama Bijapurkar Dr. Bala V. Balachandran ** Mr. Robert Maitner *** Mr. Edward Emmer Mr. R. Ravimohan Mr. Hemant Y. Joshi
38

* Dr. S. S. Baijal relinquished office on October 24, 2001 ** Mr. Robert Maitner relinquished office on October 24, 2001 *** Mr. Edward Emmer appointed as an Additional Director on October 24, 2001 The agenda and all papers relating to Board meeting are sent in advance which contain all the relevant information. 4.2 No Director of the Company is a member in more than 10 Committees nor acting as Chairman of more than five Committees across all Companies in which he/she is a Director. Furthermore, every Director informs the Company about the Committee positions he/she occupies in other Companies and notifies the changes as and when they take place.
5.
5.1 5.2
Management
Management Discussion and Analysis Report appears elsewhere in this Report. There were no personal transactions by Directors involving conflict of interest with the Company. The Company has a Code of Ethics and Personal Investment Policy for the employees of the Company. The Code of Ethics contains the policy on the following areas: (a) (b) (c) Confidentiality Gifts and favours False and misleading information/disclosures
The Personal Investment Policy contains policies prohibiting insider trading. It contains policies, procedures and restriction relating to personal investment by the employees. The policy also prohibits trading in securities of any listed Company on the basis of unpublished price sensitive information.
6.
6.1
Shareholders
The Company has provided the following information to the shareholders, in case of the appointment of a new Director or re-appointment of a Director:
q q q
A brief resume of the Director; Nature of his expertise in specific functional area; and Names of Companies in which the person also holds the Directorship and the membership of Committees of the Board.
6.2 6.3 6.4
The quarterly results are displayed on the Companys website - www.crisil.com. The Company has sent half-yearly newsletter giving details of financial performance of the Company including summary of significant events in the last six months to the shareholders. The Board has formed Investors Grievance Committee to review and redress the complaints received from shareholders. The Committee meets periodically to consider and approve the status report on investors grievances received alongwith ageing schedules of redressals of complaints for that period.
39
6.5
The Board has authorised Mr. Rajesh Patel, Head Accounts & Facilitation and Mr. Shrikant Dev, Company Secretary, to approve transfer and transmission of shares for expediting transfer/transmission cases and the details of the shares so transferred/transmitted are placed before the Investors Grievance Committee.
6.6
The Auditors Certificate of Corporate Governance is annexed with the Directors Report and will be sent to the stock exchange at the time of filing of annual returns of the Company.
7. 7.1
General Body Meetings :Location and time for last three Annual General Meetings were: Nature of Meeting Twelfth Annual General Meeting Date and Time July 27, 1999 at 3.30 p.m. Venue Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021 Thirteenth Annual General Meeting May 26, 2000 at 3.30 p.m. Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021 Fourteenth Annual General Meeting August 2, 2001 Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, at 3.30 p.m. Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021
7.2
Postal ballot system: No special resolution was put through postal ballot last year. However, Annual General Meetings are held in Mumbai as 33% of shareholders holding 79.40% of voting rights are situated in Mumbai. The Central Government has notified the Companies (Passing of Resolution by Postal Ballot) Rules, 2001 which lays down the businesses which are required to be passed by postal ballot. The Company will comply with the Rules.
7.3
Special Resolutions/Businesses transacted at the last three general body meetings:At the Twelfth Annual General Meeting held on July 27, 1999
q q
Re-appointment of M/s. S. B. Billimoria & Co., Chartered Accountants, as Auditors of the Company. Appointment of Mr. M. G. Bhide as a Director of the Company under Section 257 of the Act.
At the Thirteenth Annual General Meeting held on May 26, 2000

q q q q
Re-appointment of M/s. S. B. Billimoria & Co., Chartered Accountants, as Auditors of the Company. Appointment of Mr. Bala Balachandran as a Director of the Company under Section 257 of the Act. Appointment of Ms. Rama Bijapurkar as a Director of the Company under Section 257 of the Act. Appointment of Mr. Robert Maitner as a Director of the Company under Section 257 of the Act.
40

q
Payment of remuneration to the Non-Wholetime Directors upto three percent of the net profits of the Company for a further period of three years with effect from 01.01.2000. Increase in the remuneration payable to Mr. R. Ravimohan, Managing Director. Increase in the remuneration payable to Mr. Hemant Joshi, Executive Director. To sell, lease, transfer and or otherwise dispose off whole or any part of the undertaking of the Company or any part of its assets and liabilities to a subsidiary to be formed for conducting web business.
q q q
At the Fourteenth Annual General Meeting held on August 2, 2001

q q q q
Re-appointment of M/s. S. B. Billimoria & Co., Chartered Accountants, as Auditors of the Company. Employee Stock Option Scheme (ESOP) for the employees of the Company. Employee Stock Option Scheme (ESOP) for employees of the Subsidiary Companies. Increase in the shareholding limit of Foreign Institutional Investors (FIIs), Overseas Corporate Bodies (OCBs) and Non-Resident Indians (NRIs).
8.
8.1
Disclosure
There are no transactions during the year which are materially significant related party transactions i.e. transactions of the Company of material nature, with its promoters, the Directors or the management, their subsidiaries or relatives etc. that may have potential conflict with the interests of Company at large. Other related party transactions are mentioned in the notes to the accounts.
8.2
There were no non-compliance of laws by the Company, penalties, strictures imposed on the Company by Stock Exchange or SEBI or any statutory authority, on any matter related to capital markets, during the last three years.
9.
9.1 9.2 9.3
Means of Communication
The Company sends half-yearly newsletter giving details of financial performance of the Company including summary of significant events in the last six months to all the shareholders. The quarterly results are published in leading national newspaper, regional newspaper and put on the corporate website www.crisil.com, along with the official press releases. Management Discussion and Analysis (MD&A) Report is a part of the annual report.
10. General Shareholder Information

Detailed Information in this regard is provided in the Shareholder Information section of this Annual Report.
41
42
CRISIL Ten Year Highlights

Rs. in Lacs Year ended March 31 Revenues PBDIT Earnings per share (Rs.) Market Capitalisation Number of Employees Net Worth Net Worth per share (Rs.) Dividend (%) PBT Revenue per employee Profit per Employee 1993 699.84 521.73 4.78 -93 1994 1995 1996 1997 1998 3,601.41 1,956.15 16.00 27,280 205 4,138.94 66.76 45 1,544.84 17.57 7.54 1999 4,021.12 2,495.02 20.17 29,884 197 5,018.26 80.94 55 2,083.57 20.41 10.58 2000 2001 2002
999.52 1,533.32 2,167.74 2,662.73 640.27 1,057.33 1,472.19 1,707.87 5.42 10,044 141 9.06 8,060 161 12.21 10,664 191 12.33 14,260 182
4,033.06 5,153.73 6,929.45 2,216.47 20.84 24,800 202 1,876.6 3,563.51 15.59 7,440 256 21.09 19,639 243
676.66 1,834.94 2,257.86 2,859.78 3,446.19 16.11 15 410.6 7.53 4.42 29.6 20 536.16 7.09 3.80 36.42 25 46.13 27 55.58 30
5,938.91 6,537.09 7,104.36 95.78 55 111.50 55 114.59 65
856.63 1,202.10 1,270.83 9.52 5.32 11.35 6.29 14.63 6.98
1,922.63 1,338.44 2,862.26 19.97 9.52 20.13 5.23 28.52 11.78
INFORMATION TO THE MEMBERS

1. Annual General Meeting - Date and Time - Venue : Friday, August 2, 2002 at 3.30 p.m. Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai 400021. : Friday, July 19, 2002 Friday, October 11, 2002 Friday, January 3, 2003. End of April, 2003 : : : : Rs. 6.50 per share having nominal value of Rs. 10/July 10, 2002 to July 12, 2002 (both days inclusive) August 3, 2002 The shares of the Company are listed on : (A) 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. (B) The Stock Exchange, Mumbai (BSE) Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001. The Company has paid its listing fees at both the exchanges and has complied with the listing requirements. 7. 8. Stock Code Registrars and Share Transfer Agents : National Stock Exchange of India Limited CRISIL The Stock Exchange Mumbai (BSE) - 500092. Karvy Consultants Ltd., Karvy House, 21, Avenue 4, Street No 1, Banjara Hills, Hyderabad 500 034. Phone No. 040-3312454, 3320251/751/752 Fax. No. 040-3311968, 3323049. Mr. Shrikant Dev., Company Secretary Crisil House, Plot No. 121/122, 1st Floor, Andheri Kurla Road, Andheri (East), Mumbai - 400 093. Phone: 022-6913001-09 q Fax : 022-6913000
43
2.
Financial Calendar Financial Reporting for the Quarter ending June 30, 2002 Quarter ending September 30, 2002 Quarter ending December 31, 2002 Year ending March 31, 2003
3. 4. 5. 6.
Proposed Dividend Dates of Book Closure Dividend Payment Date Listing Details
9.
Compliance Officer
8.
Depository System
With effect from November 29, 1999, equity shares of the Company have been mandated for trading in dematerialised form by all categories of investors. Presently, 87% of Companys Share Capital is held in dematerialised form. For any assistance in converting physical shares in electronic form, investors may approach Karvy Consultants Ltd or Mr. Shrikant Dev, Compliance Officer at the address given above. The Company has extended the ECS facility to the shareholders to enable them to receive dividend through electronic mode into the bank account. ECS provides adequate protection against fraudulent interception and encashment of dividend warrants apart from eliminating loss/damage of dividend warrants in transit and the correspondence with the Company on revalidation/ issuance of duplicate dividend warrants. Under ECS facility, the dividend amount shall be directly credited to the shareholders bank account. Registrars and Share Transfer Agents or to Mr. Shrikant Dev, Compliance Officer at the addresses given above.
9.
ECS
10. Investor Complaints be addressed to
CRISIL Shareholding pattern as at 31st March, 2002. Category Public FIIs Banks and Insurance Companies ICICI Bank Ltd. Unit Trust of India Standard & Poors Intl. LLC NRIs and OCBs Bodies Corporate Mutual Funds Employees and Directors Total Total Holdings 1,292,007 1,014,009 1,007,269 684,039 617,378 600,000 560,112 225,499 176,487 23,200 6,200,000 % holding 20.84 16.35 16.25 11.03 9.96 9.68 9.03 3.64 2.85 0.37 100
44

Disclosure of CRISIL shareholders holding more than 1% of the paid-up share capital as on March 31, 2002. Name ICICI Bank Ltd. Unit Trust of India Standard & Poors Intl. LLC Pacific Strategic (M) Limited Prolific Intl. India Opportunities Fund (Mauritius) Ltd. Oppenheimer Funds Inc. Oppenheimer International Small Company Fund Life Insurance Corporation of India State Bank of India Aberdeen Asset Managers Ltd-A/c Aberdeen Smaller Cos.Inv. Trust PLC Arisaig Partners (Asia) PTE Ltd A/c Arisaigindia Fund Ltd General Insurance Corporation of India & its Subsidiaries Jhunjhunwala Rakesh Radheshyam Canara Bank Kotak Mahindra Finance Limited Pioneer ITI Mutual Fund Pvt. Ltd_A/c Pioneer ITI Prima Plus Lloyd George Investment Management Bermuda Limited United India Insurance Company Limited Central Bank of India Pioneer ITI Mutual Fund Pvt. Ltd_A/c Pioneer ITI Internet Opportunities Fund No. shares 684,039 617,378 600,000 514,710 290,000 265,000 201,331 200,000 195,000 188,309 170,000 166,928 119,200 100,000 77,851 75,000 70,905 69,200 66,952 % holding 11.03 9.96 9.68 8.30 4.68 4.27 3.25 3.23 3.15 3.04 2.74 2.69 1.92 1.61 1.26 1.21 1.14 1.12 1.08
Number of shareholders complaints received & resolved during the year 2001 - 2002 STATUS REPORT FOR THE PERIOD 01.04.2001 TO 31.03.2002 Nature of Correspondence Transfer of shares Transmission of shares Demat requests Issue of duplicate share certificate Non-receipt of share certificate Non-receipt of dividend warrant Revalidation of dividend warrant Issue of duplicate dividend warrant Deletion of deceased shareholders name Rectification / Correction of name Registration of Power of Attorney Incorporation of change of address Incorporation of bank mandate TOTAL Received 13 3 3 2 9 32 16 1 -2 35 24 140 Replied 12 3 3 2 9 32 16 1 -2 35 24 139 Pending 1 ------------1
45
CRISILs NSE & BSE price movements during 2001 - 2002

NSE Month April 2001 May 2001 June 2001 July 2001 August 2001 September 2001 October 2001 November 2001 December 2001 January 2002 February 2002 March 2002 High (Rs.) 128.45 148.00 142.00 110.00 114.00 128.40 125.00 139.75 142.00 292.00 289.00 340.00 Low (Rs.) 103.00 110.00 98.00 99.00 102.10 85.05 103.00 118.05 105.10 126.20 203.00 250.10 Month April 2001 May 2001 June 2001 July 2001 August 2001 September 2001 October 2001 November 2001 December 2001 January 2002 February 2002 March 2002 BSE High (Rs.) 129.00 147.10 136.00 112.00 114.00 119.00 126.85 141.90 140.70 292.75 279.00 342.00 Low (Rs.) 101.05 106.05 98.00 96.00 102.15 98.50 103.00 117.05 120.25 125.00 202.00 245.10
Crisil Share Price Performance Relative to BSE Sensex
46
Nature of shareholders agreement with Standard & Poors (S&P)

Crisil has strategic alliance with S&P. S&P holds 9.68 percent of share capital of Crisil. Under the terms of the Agreement, S&P will share with CRISIL its advanced rating methodologies and analytical criteria, and will be available to provide assistance on other aspects of credit rating agency operations. In exchange, CRISIL will provide S & P with business development assistance in India and share its considerable knowledge of local debt market and debt issuers.
Shareholders Rights :
A shareholder in a Company enjoys certain rights, which are as follows:
q q
to receive the share certificates, on allotment or transfer as the case may be, in due time. to receive copies of the abridged Annual Report, the Balance Sheet and the Profit and Loss Account and the Auditors Report.
q q q q q q q q q
to participate and vote in General Meetings either personally or through proxies. to receive Dividends in due time once approved in General Meetings. to receive corporate benefits like rights, bonus etc. once approved. to apply to Company Law Board (CLB) 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 www.crisil.com.
Besides the above rights, an individual shareholder also enjoys the following rights as a group
q q q q
to requisition an Extra-ordinary General Meeting. to demand a poll on any resolution. to apply to CLB to investigate the affairs of the Company. to apply to CLB for relief in cases of oppression and/or mismanagement.
You may note that the above mentioned rights may not necessarily be absolute.
47
AUDITORS REPORT
TO THE MEMBERS OF THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED 1. We have audited the attached Balance Sheet of THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED as at March 31, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to in paragraph 3 above : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
2.
3.
4.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (e) on the basis of the written representations from the Directors, taken on record by the Board of Directors, and according to the information and explanations given to us, none of the Directors is disqualified as on March 31, 2002 from being appointed as a Director under Section 274 (1)(g) of the Companies Act, 1956. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2002; and (ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date. For S. B. BILLIMORIA & CO. Chartered Accountants
(f)

48
Mohammed Z .Merchant Partner
ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date) 1. The Company has maintained proper records showing full particulars including quantitative details and location of fixed assets. The fixed assets were physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. No discrepancies were noticed on such verification. The fixed assets of the Company have not been revalued during the year. The Company has neither accepted from nor granted any loan to companies, firms or parties listed in the register maintained under Section 301 of the Companies Act, 1956 or Companies under the same management within the meaning of Section 370(1B) of the Companies Act, 1956. The parties to whom loans or advances in the nature of loans have been given by the Company are repaying the principal amounts wherever stipulated and are regular in paying interest where applicable. The internal control procedures of the Company relating to the purchase of fixed assets and invoicing of services are commensurate with the size of the Company and the nature of its business. There were no transactions of services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956. The Company has not accepted any deposits from the public. In our opinion, the internal audit function carried out during the year by a firm of chartered accountants appointed by the management were commensurate with the size of the Company and the nature of its business. The Company has been regular in depositing Provident Fund and Employees State Insurance Scheme dues with the appropriate authorities.
2. 3.
4. 5. 6. 7. 8. 9.
10. There were no undisputed amounts payable in respect of income-tax, wealth tax, sales tax, customs duty and excise duty outstanding as at March 31, 2002 for a period of more than six months from the date they became payable. 11. According to the information and explanations given to us and the records of the Company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. 12. The Company does not have a system of allocation of man hours utilised to relative jobs. For S. B. BILLIMORIA & CO. Chartered Accountants Mohammed Z. Merchant Partner
49
Balance Sheet as at March 31, 2002

As at March 31,2002 Rupees Rupees As at March 31,2001 Rupees Rupees
Schedule Shareholders Funds Share Capital Reserves & Surplus Deferred Tax Liability A B
62,000,000 649,773,084 34,500,000 746,273,084
62,000,000 593,798,074 -655,798,074
Application of Funds Fixed Assets Gross Block Less : Depreciation Net Block Add : Capital Work in Progress & Advances Investments Current Assets, Loans & Advances Current Liabilities & Provisions Miscellaneous Expenditure Share Issue Expenses (to the extent not written off ) D E F 196,867,520 (159,914,612) C 689,477,249 238,221,416 451,255,833 5,227,240 456,483,073 251,499,900 380,695,443 36,952,908 (236,614,967) 1,337,203 144,080,476 2,089,251 609,817,607 176,689,163 433,128,444 1,500,000 434,628,444 74,999,903
746,273,084 L&M For and on behalf of the Board A.V.Rajwade Dr.S.A.Dave B.R.Shah M.G.Bhide Rama Bijapurkar Edward Emmer
655,798,074
Significant Accounting Policies and the Notes to the Accounts Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner
Directors
B.V.Bhargava R.Ravimohan Hemant Joshi Roopa Kudva Shrikant Dev
Chairman Managing Director Executive Director Executive Director & Chief Rating Officer Company Secretary
Mumbai : April 26, 2002 50
Mumbai : April 26, 2002
Profit and Loss Account for the year ended March 31, 2002
INCOME Income from Operations Other Income Extraordinary items: Profit on sale of Fixed Assets (Net) Profit on sale of Property Rights Profit on sale of Investments Expenses Staff Expenses (Refer Note15, Schedule L) Establishment Expenses (Refer Note15, Schedule L) Other Expenses (Refer Note15, Schedule L) Extraordinary items: Loss on sale of Investments Profit after extraordinary items Provision for Contingencies (made)/Written back (Refer Note 16,Schedule L) Profit before Depreciation & Tax Less : Depreciation Profit before Tax Less : Income Tax arrears (Refer Note 9, Schedule L) Less : Provision for Taxation (Refer Note 7, Schedule L) Profit after Tax Add: Profit brought forward from previous years Appropriations : Proposed Dividend Corporate Dividend Tax General Reserve Balance carried to Balance Sheet Significant Accounting Policies and Notes to the Accounts Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Schedule G H Current Year Rupees 667,736,607 16,080,279 488,740 -8,640,006 692,945,632 I J K 153,860,022 63,596,925 114,136,863 -331,593,810 361,351,822 (5,000,000) 356,351,822 70,125,450 286,226,372 52,451,362 103,000,000 130,775,010 33,798,074 164,573,084 40,300,000 -80,000,000 44,273,084 164,573,084 L&M For and on behalf of the Board A.V. Rajwade Dr. S.A. Dave B.R. Shah M.G. Bhide Rama Bijapurkar Edward Emmer Previous Year Rupees 439,783,283 16,859,687 28,143,406 30,586,398 -515,372,774 124,541,775 60,556,811 111,152,634 40,461,096 336,712,316 178,660,458 9,000,000 187,660,458 53,816,113 133,844,345 -37,200,000 96,644,345 54,731,929 151,376,274 34,100,000 3,478,200 80,000,000 33,798,074 151,376,274
Directors
B.V. Bhargava R. Ravimohan Hemant Joshi Roopa Kudva Shrikant Dev
Schedules annexed to and forming part of the Accounts

As at March 31,2002 Rupees Rupees Rupees As at March 31,2001 Rupees
Schedule A
Share Capital Authorised : 10,000,000 Equity Shares of Rs.10 each Issued, Subscribed & Paid up : 6,200,000 Equity Shares of Rs 10 each fully paid up 62,000,000 62,000,000 100,000,000 100,000,000
Schedule B
Reserves & Surplus Share Premium Account General Reserve as per last Balance Sheet Less : Transfer to Deferred tax Liablility Add : Transfer from Profit and Loss Account Profit and Loss Account 480,000,000 (34,500,000) 80,000,000 525,500,000 44,273,084 649,773,084 80,000,000 400,000,000 -80,000,000 480,00,000 33,798,074 593,798,074 80,000,000
52
Schedule C
GROSS BLOCK AT COST Fixed Assets As on 1/04/2001 Rs. 8,959,000 65,430,000 1,729,500 299,869,111 49,136,397 46,132,747 115,498,891 13,561,961 9,500,000 Additions Rs. ---11,450,414 24,473,260 18,063,563 28,894,533 13,462,354 -Deductions Rs. ---4,220,811 3,097,580 1,287,390 2,289,605 5,789,096 -As on 31/03/2002 Rs. 8,959,000 65,430,000 1,729,500 307,098,714 70,512,077 62,908,920 142,103,819 21,235,219 9,500,000 Upto 1/04/2001 Rs. 521,401 18,342,848 480,327 40,918,909 19,012,678 12,417,546 70,628,046 4,867,408 9,500,000
DEPRECIATION For the year Rs. 447,950 11,771,788 312,293 13,408,614 9,367,573 6,466,687 24,040,433 4,310,112 -On Assets sold Rs. ---691,727 2,235,920 469,560 1,884,569 3,311,421 --
NET BLOCK Upto As on 31/03/2002 31/03/2002 Rs. Rs. 969,351 30,114,636 792,620 7,989,649 35,315,364 936,880 As on 31/03/2001 Rs. 8,437,599 47,087,152 1,249,173 258,950,202 30,123,719 33,715,201 44,870,845 8,694,553 --
Goodwill Trademarks Copyrights Buildings Furniture & Fixtures Office Equipments Computers Vehicles Leased Assets (Plant & Machinery) Total Previous Year
53,635,796 253,462,918 26,144,331 18,414,673 92,783,910 5,866,099 9,500,000 44,367,746 44,494,247 49,319,909 15,369,120 --
609,817,607 408,720,363
96,344,124 258,740,988
16,684,482 57,643,744
689,477,249 609,817,607
176,689,163 144,465,216
70,125,450 53,816,113
8,593,197 21,592,166
238,221,416 451,255,833 176,689,163 433,128,444
433,128,444 264,255,147
Note : Buildings include Rs. 490,800 (Previous Year - Rs. 490,800) in respect of shares held in Co-operative Societies and Rs.120,000,000(Previous Year - 120,000,000) in respect of 4900 shares of Crisil Properties Ltd (subsidiary Company).
Annual Report 15th 2001 - 2002
53
Schedule D
Investments (At Cost) A. Long Term (Unquoted) Trade Investments Investment in subsidiaries 25,000 Equity shares of Crisil Research and Information Services Limited of Rs. 100 each fully paid up. 40,000,000 Equity Shares of Crisil.com Ltd of Re.1 each (Previous year 2,99,99,990 shares Rs. 1 each, Rs.0.75 paid up and 10 shares of Rs.1 each fully paid up) 2,49,993 Equity shares of Global Data Services of India Ltd. of Rs.10 each fully paid up Other investment 649,997 Equity shares of India Index Services & Products Ltd. of Rs. 10 each fully paid up. (Previous year 2,49,997 shares of Rs.10 each) B. Short Term (Unquoted) 2,872,758.351 Units (Previous year 1,742,592 units) of Prudential ICICI Liquid Plan (1,846,531.107 units purchased and sold during the year) 28,797.074 Units (Previous year 17481 units) of Alliance Cash Manager Plan 3,579,706.643 Units of IDBI Principal Cash Management Fund 3,960,396.04 Units of Templeton Floating Rate Bond Fund 3,549,340.266 Units of HDFC Liquid Plan (4,614,872.541 units purchased and sold during the year) NOTE : During the year the following mutual fund units were purchased and sold 1,898,513.085 units of DSP Merrill Lynch Liquid Plan 2,000,000 units of Birla Fixed Maturity Plan 3,701,844.06 units of Franklin Templeton Liquid Plan 4,402,795.543 units of Prudential ICICI Fixed Maturity Plan
As at March 31,2002 Rupees
2,500,000 40,000,000
2,500,000 22,500,003
2,499,930
2,499,930
6,499,970
2,499,970
40,000,000
22,500,000
40,000,000
22,500,000
40,000,000 40,000,000 40,000,000
----
----251,499,900
----74,999,903
54
Report 15th Annual 2001 - 2002 Schedule E

Current Assets, Loans & Advance A. Current Assets : Cash on Hand Bank Balances with Scheduled Banks On Current Accounts On Fixed Deposit Accounts Sundry Debtors (Unsecured - Considered Good) Debtors - over six months Other Debtors Other Interest Accrued (A) B. Loans and Advances Loans to Staff (Considered Good) (Refer note 6, Schedule L) Advances recoverable in cash or kind or for value to be received (Unsecured - Considered Good) Sundry Deposits (Refer note 6, Schedule L) Advance Taxes paid and TDS (Net of Provision for Taxation) (B) TOTAL (A+B) As at March 31,2002 Rupees 60,511 5,429,452 36,920,537 18,596,719 53,374,917 545,890 114,928,026 23,621,849 5,224,015 21,436,177 31,657,453 81,939,494 196,867,520 As at March 31,2001 Rupees 86,909 28,107,886 36,812,084 19,570,801 44,393,727 513,959 129,485,366 99,408,236 51,220,047 16,239,644 84,342,150 251,210,077 380,695,443
Schedule F
Current Liabilities and Provisions A. Current Liabilities : Sundry Creditors Advances received from clients Other Liabilities
36,695,964 28,203,154 43,890,494 (A) 108,789,612 40,300,000 -5,000,000 5,825,000 (B) TOTAL (A+B) 51,125,000 159,914,612 Current Year Rupees 494,311,499 119,641,021 53,784,087 667,736,607
51,094,801 44,058,213 98,512,753 193,665,767 34,100,000 3,478,200 5,371,000 42,949,200 236,614,967 Previous Year Rupees 283,709,088 107,351,638 48,722,557 439,783,283 55
B. Provisions : Proposed Dividend Corporate Dividend Tax thereon Provision for Contingency Provision for Leave Encashment
Schedule G
Income From Operations Ratings Services Advisory Services Research & Information Services
Schedule H
Other Income Income from Investments (TDS Rs. Nil, Previous year Rs. Nil) Interest on Deposits and Loans (TDS - Rs.685,695, Previous Year - Rs. 940,945) Lease Income Foreign Exchange Gain Miscellaneous Income
Current Year Rupees 376,461 5,502,200 9,747,908 453,710 -16,080,279
Previous Year Rupees 574,646 5,900,592 4,420,215 -5,964,234 16,859,687
Schedule I
Staff Expenses Salaries & Bonus Contribution to Provident & Other Funds Staff Training & Welfare Expenses
133,888,101 8,274,176 11,697,745 153,860,022
105,821,218 7,089,593 11,630,964 124,541,775
Schedule J
Establishment Expenses Repairs and Maintenance - Buildings - Others Electricity Postage and mailing expenses Telephone expenses Insurance Rent Rates & Taxes
12,085,348 8,067,258 8,585,943 2,182,710 11,536,431 2,318,516 16,321,187 2,499,532 63,596,925
5,964,721 8,421,598 8,918,603 1,985,474 21,832,216 1,962,512 9,596,460 1,875,227 60,556,811
Schedule K
Other Expenses Printing and Stationery Travelling and Conveyance Books and Periodicals Vehicle Expenses Remuneration to Non-wholetime Directors (Refer note 10, Schedule L) Business Promotion and Advertisement Preliminary Expenditure Written off Professional Fees Software Purchase & Maintenance Expenses Bad Debts written off Auditors Remuneration (Refer note 13, Schedule L) Miscellaneous Expenses
9,893,830 19,081,425 2,598,285 3,503,367 3,585,000 2,666,993 752,048 52,261,644 8,214,538 9,175,044 277,200 2,127,489 114,136,863
11,907,961 20,644,992 2,400,790 3,062,285 3,470,000 4,739,873 752,048 44,597,525 12,071,557 6,171,622 201,111 1,132,870 111,152,634
56

Schedule L 1.
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS
Accounting Policies
The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.
1.1 Basis of Accounting
1.2 Fixed Assets and Depreciation / Amortisation All fixed assets are stated at cost which comprises of purchase price, duties and any directly attributable cost of bringing the asset to its working condition for intended use. Depreciation on the assets has been provided on written down value at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Trademarks and Copyrights has been provided at the rates prescribed by the Income Tax Act, 1961. Goodwill is amortised over a period of 20 years. Depreciation on assets added, sold or discarded during the year has been provided on pro-rata basis. 1.3 Investments Investments are stated at lower of Cost and Fair value. Provision for dimunition in case of long term investments is made if the decline in value is other than temporary in nature. 1.4 Revenue Recognition Income from Operations Income from Operations comprises of income from rating and surveillance activities, credit assessments, special assignments, advisory services and subscriptions to information products. Rating Fees are deemed to accrue on the date of assignment of rating. Surveillance fee income and subscription to information products are receivable and accounted annually on accrual basis. Fees received for credit assessments, advisory services and special assignments are fully recognised as income in the year in which such assessments/assignments are carried out. Other Income Dividends from investments are recognised in the Profit & Loss Account when the right to receive the dividends is established. Lease Income is accounted as per the Accounting Standard 19 on Leases issued by the Institute of Chartered Accountants of India. Interest income is recognised on accrual basis. 1.5 Retirement Benefits The Company provides retirement benefits in the form of Provident Fund, Superannuation and Gratuity. Contribution to the Provident Fund is made at prescribed rates to the Provident Fund Trust / Commissioner and absorbed in the Profit and Loss Account. Liability in respect of Superannuation benefits extended to certain employees is contributed by the Company to LIC of India against a master policy @ 15% of the basic salary of such employees. The Company has taken a Group Gratuity Insurance Policy with LIC of India to secure gratuity liability. The Company accounts for gratuity liability equivalent to the premium amount payable to LIC of India every year based on a percentage of annual salary specified by LIC of India.Provision for leave encashment liability is made on actuarial basis. 1.6 Foreign Currency Transactions Income and expenditure in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. 1.7 Miscellaneous Expenditure Share issue expenses and preliminary expenses are amortised over a period of ten years. 1.8 Deferred Tax Company has recognised and provided for Deferred Tax Liability as per Accounting Standard 22 Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India. 57
2.
Contingent liabilities not provided for includes Performance Guarantee given to East African Development Bank Rs.3,599,093 and income tax matters pending in appeal Rs.Nil (Previous Year - Rs. 51,792,301). The Company has, however, paid all the tax demands under protest. Estimated amount of contracts remaining to be executed on capital account and not provided for aggregate to Rs.1,103,704 (Previous Year Rs. 5,307,125). Uncalled Liability on shares partly paid and held as investments Rs.Nil ( Previous year Rs. 7,499,997). Buildings include Rs.26,438,200 paid for acquiring premises for which conveyance of title in favour of the Company is pending.Depreciation on these premises have been provided for the full year. Loan outstanding from Officers of the Company - Rs. 4,100,383. (Previous Year Rs.- 5,133,884). Maximum amount outstanding at any time during the year - Rs.5,478,747 . (Previous Year - Rs. 5,202,135). Sundry Deposits include Rs.1,000,000 (Previous Year - Rs. 1,000,000) paid to Officers of the Company. Maximum outstanding at any time during the year - Rs.1,000,000(Previous year Rs.1,000,000) Provision for Taxation - Rs.103,000,000 (Previous year Rs.37,200,000) includes Provision for Income Tax Rs.98,200,000. (Previous year - Rs. 36,800,000),Wealth Tax - Rs.5,00,000 ( Previous year - Rs. 400,000) and Deferred tax Rs. 4,300,000 (Previous year - Rs. Nil). The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. The Company has changed the method of accounting in respect of initial rating fees received which in the past were deemed to accrue over a period of 12 months from the date of assignment of rating. These fees are now deemed to accrue fully on the date of assignment of rating. As a result of the change, rating income for the year is higher by Rs.68,282,624 with consequential effect on profits. Arising out of the above change, the corresponding taxes paid under protest (relating to earlier years) amounting to Rs 52,451,362 have been written off to Profit and Loss account. Current Year Rupees 3,477,200 2,700,000 680,400 1,392,579 8,250,179 Non - wholetime Directors : Fees paid Commission Payable Computation of Net Profit in accordance with Section 198 of the Companies Act, 1956 for calculation of commission payable to Directors : Profit before Taxation Add : Remuneration to Wholetime Directors Remuneration to Non-wholetime Directors Depreciation charge in Accounts Profit on sale of assets under Section 349 Loss on sale of Investments Less : Depreciation as per Section 350 Profit/(Loss) on sale of assets as per books Profit on sale of Investments Net Profit under Section 198 485,000 3,100,000 3,585,000 Previous Year Rupees 3,251,720 1,550,000 530,316 556,915 5,888,951 535,000 2,935,000 3,470,000
3. 4. 5. 6.
7.
8. 9.
10. Managerial Remuneration : Wholetime Directors : Salary Commission Contribution to PF, Superannuation & Gratuity Fund Perquisites
286,226,372 8,250,179 3,585,000 70,125,450 488,740 -368,675,741 70,125,450 488,740 8,640,006 289,421,545
133,844,345 5,888,951 3,470,000 53,816,113 28,143,406 40,461,096 265,623,911 37,255,052 28,143,406 -200,225,453
58

Commission payable to each Wholetime Director upto a maximium of 3% of the above Commission payable to Non-Wholetime Directors 11 12 Earnings in foreign exchange : Rendering advisory services and Sale of information products Expenditure in foreign currency : Foreign travel Others Auditors Remuneration includes : Audit fees (includes service tax Rs.8,750. Previous year 6,250) Tax Matters (includes service tax Rs.2,000. Previous Year - Rs.1,500) Other matters (includes service tax Rs.2,650. Previous year Rs.1,250) Out of Pocket Expenses Amount remitted during the year in foreign currency, on account of dividends Number of shareholders Number of equity shares of Rs 10 each held by them on which dividend was paid Year to which dividend related Amount remitted (Rs) 15 16 2000-2001 3,300,000 1999-2000 3,300,000 2,700,000 3,100,000 39,769,827 6,275,140 5,269,488 183,750 42,000 44,400 7,050 277,200 1 600,000 1,550,000 2,935,000 19,688,452 5,299,418 3,629,121 131,250 31,500 31,250 7,111 201,111 1 600,000
13
14
Staff Expenses - Rs.153,860,022, Establishment Expenses - Rs. 63,596,925 and Other Expenses - Rs.114,136,863 are net of recoveries of Rs. 1,434,991, Rs.451,461 and Rs.1,089,268 respectively. During the year the Company has created a Provision for Contingencies amounting to Rs. 50 lacs which, in the opinion of the management, is considered necessary and adequate to provide, inter alia, for possible losses, expenses or claims arising out of disputes during conduct of business. At the fourteenth Annual General meeting held on August 2, 2001 the shareholders approved the Employee Stock Option Plan (ESOP) for the employees and whole time Directors of the Company and its subsidiaries. During the year Company has issued 56,300 stock options to 44 employees, details of which is given in Directors report. Segment Reporting Segment Reporting as at March 31,2002 Particulars Ratings Operating Revenue Segment Results Other unallocable expenses over income Operating Profit Depreciation Provision for Contingencies Profit Before Tax Income Tax arrears Provision for Income Tax Net Profit after Tax 494,311,499 317,794,092 Business segments Advisory Information 119,641,021 42,462,848 53,784,087 2,536,008 TOTAL 667,736,607 362,792,948 (1,441,126) 361,351,822 (70,125,450) (5,000,000) 286,226,372 (52,451,362) (103,000,000) 130,775,010 59
17
18
Segment Reporting as at March 31, 2001 Particulars Ratings Operating Revenue Segment Results Other unallocable Income over expenses Operating Profit Depreciation Provision for Contingencies Profit Before Tax Provision for Income Tax Net Profit Notes to Segment Reporting 1. The Companys operations predominantly relate to providing rating, advisory, research and information services. Accordingly, revenues earned through rendering of these services represents the primary basis of segment information set out above. 2. The Company has no geographical segments. 3. Previous year figures are given for comparison purpose and are not audited. 4. Fixed assets used in the Companys business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous. 19 Earnings Per Share Profit After Taxation as per Profit and Loss Account Number of shares outstanding Basic Earnings per Share ( Face Value Rs. 10 per share ) 20 Related Party Disclosure Name Crisil Research & Information Services Ltd. Global Data Services of India Ltd. Relationship Subsidiary Nature of Transactions Investment in Equity Shares Professional Fees paid Subsidiary Investment in Equity shares Professional Fees Paid Income earned on their behalf and transferred Expenses incurred and recovered - Staff Expense - Establishment expenses - Other expense 60 Volume (Amount Rs.) 2,500,000 20,400,000 2,499,930 4,800,000 377,245 2001-02 130,775,010 6,200,000 21.09 2000-01 96,644,345 6,200,000 15.59 283,709,088 137,434,862 Business segments Advisory 107,351,638 24,758,410 Information 48,722,557 326,996 439,783,283 162,520,268 16,140,189 178,660,457 (53,816,113) 9,000,000 133,844,344 (37,200,000) 96,644,344 TOTAL
1,434,991 451,461 1,089,268

Crisil.com Limited Subsidiary Investment in Equity shares (Investment made during the year Rs.17,499,997) Professional Fees paid Deposits paid and recovered Maintenance charges for CRISIL House paid Investment in Equity Shares ( Investment made during the year Rs.4,000,000) Remuneration Loan balance as at year end Sundry Deposits Rent Paid Remuneration Loan balance as at year end 40,000,000
5,400,000 1,200,000 1,668,607 6,499,970
Crisil Properties Ltd. India Index Services and Products Ltd. Mr. R.Ravimohan
Subsidiary Joint Venture
Whole time Director
4,464,317 1,977,847 1,000,000 120,000 3,785,863 2,122,536
Mr. Hemant Joshi
Whole time Director
21. Previous years figures have been regrouped where necessary to conform to this years classification.
Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner
For and on behalf of the Board A.V. Rajwade Dr. S.A. Dave B.R. Shah M.G. Bhide Rama Bijapurkar Edward Emmer
Directors
61
Schedule M
Cash Flow Statement for the year ended March 31, 2002
Current Year Rupees Rupees 286,226,372 70,125,450 5,000,000 (488,740) -752,048 (8,640,006) (5,878,661) (9,747,908) 337,348,555 Previous Year Rupees Rupees 133,844,345 53,816,113 (9,000,000) (28,143,406) (30,586,398) 752,048 40,461,096 (6,475,238) (4,420,215) 150,248,345
A.
Cash Flow from Operating Activities : Profits Before Tax Adjustments for : Depreciation Provision for contingency made/(written back) Profit on sale of Fixed Assets Profit on sale of property rights Miscellaneous Expenditure written off (Profit) / Loss on Sale of Investments Interest / Dividend received Lease Income Operating Profit before Working Capital changes Adjustments for : Trade & Other Receivables Sundry Debtors Sundry Deposits Accrued Interest Loans Advances Advance Payment of Tax & TDS Trade Payables Sundry Creditors Other Liabilities Provision for Leave Encashment Cash generated from Operations Direct Taxes provided Cash Flow before Extra ordinary items Extra Ordinary items Net Cash form Operating Activities
(8,007,109) (5,196,533) (31,931) 75,786,387 45,996,032 52,684,697 (14,398,837) (70,477,318) 454,000 414,157,943 (155,451,362) 258,706,581 -258,706,581
(2,534,662) (2,846,200) 7,113,215 (73,599,316) (35,656,050) (17,923,214) 34,422,822 74,045,340 1,257,000 134,527,280 (37,200,000) 97,327,280 -97,327,280
B.
Cash Flow from Investing Activities : Purchase of Fixed Assets Sale of Fixed Assets Profit on Sale of Property rights Purchase of Investments Sale of Investments Interest received Profit/(loss) on Sale of Investments Lease Income Net Cash used in Investing Activities (100,071,364) 8,580,027 -(391,499,998) 215,000,000 5,878,661 8,640,006 9,747,908 (243,724,760) (133,016,953) 64,194,986 30,586,398 (69,999,933) 112,875,000 6,475,238 (40,461,096) 4,420,215 (24,926,145)
62

Current Year Rupees Rupees C. Cash Flow from Financing Activities : Proceeds from Issue of Share Capital Dividend & Dividend Tax paid Net Cash used in Financing Activities Net Increase/(decrease) in Cash and Cash Equivalents Cash and Cash Equivalents (Opening balance) Cash and Cash Equivalents (Closing balance) Net Increase/(decrease) in Cash and Cash Equivalents -(37,578,200) (37,578,200) (22,596,379) 65,006,879 42,410,500 (22,596,379) -(37,851,000) (37,851,000) 34,550,135 30,456,744 65,006,879 34,550,135 Previous Year Rupees Rupees
Directors
We have verified the above Cash Flow Statement of THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED derived from the audited financial statements for the years ended March 31, 2002 and March 31, 2001 and found the same to be drawn in accordance therewith and with the requirements of Clause 32 of the listing agreement with the stock exchange. For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26,2002
63
Statement pursuant to section 212 of the Companies Act ,1956 relating to Subsidiary Company
1. Name of the subsidiary company Crisil Research & Information Services Limited March 31, 2002 25,000 Equity shares of Rs.100/each fully paid up 100% Global Data of India Limited Crisil.com Crisil Properties services Limited Limited
2. The financial period of the subsidiary company ended on 3. (a) Number of shares in the subsidiary Company held by CRISIL at the above date (b) Extent of interest of CRISIL in the capital of the subsidiary 4. Net aggregate amount of the profits/ (losses) of the subsidiary so far it concerns the members of CRISIL as is not dealt with the Companys Accounts : (a) Profits / (losses) for the period ended March 31, 2002 of the subsidiary (b) Profits / (losses) for the previous financial year of the subsidiary, since it became the subsidiary of CRISIL 5. Net aggregate amount of the profits /(losses) of the subsidiary so far as dealt with or provision is made for those losses in CRISIL s Accounts (a) For the subsidiarys financial year ended March 31, 2002 (b) For the previous year since it became a subsidiary of CRISIL Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner
March 31, 2002
March 31, 2002 March 31, 2002 4900 Equity shares of 100/each fully paid up 100%
249,993 Equity 40,000,000 shares of Rs. 10/- Equity shares each fully paid up of Rs. 1/- each fully paidup 100% 100%
Rs. 446,598 Rs.868,361
Rs.701,054 Rs. 286,674
(Rs.16,404,164) Nil (Rs.8,160,957) Nil
Nil Nil
Nil Nil
Nil Nil
Nil Nil
Directors
Additional Information as required under Part IV of Schedule VI to the Companies Act, 1956
Balance Sheet abstract and Companys General Business Profile

I. Registration Details
Registration No. Balance Sheet Date 3 1 . 0 3 4 2 . 3 6 0 3 2 State Code 1 1 2 0
II.
Capital Raised during the Year (Amount in Rs. Thousands)

Public Issue Bonus Issue N N i i l l Rights Issue Private Placement N N i i l l
III. Position of Mobilisation and Deployment of Funds (Amount in Rs.Thousands)

Total Liabilities 7 4 6 6 2 2 0 N 4 5 6 3 6 4 9 N 6 2 9 2 8 6 2 1 9 2 . 7 0 i 8 5 i 4 2 0 3 0 l 3 3 l 6 6 9 Total Expenditure Profit/(Loss) After Tax Dividend Rate % Item Code No. N N N o o o t t t A A A p p p p p p l l l i i i c c c a a a b b b l l l e e e 3 3 1 3 1 0 5 7 9 7 6 4 5 5 Total Assets Reserves & Surplus Unsecured Loans Investments 2 5 1 1 7 4 6 8 6 4 2 2 N 5 3 7 7 i 0 3 3 3 l 0 7
Source of Funds
Paid up Capital Secured Loans
Application of Funds
Net Fixed Assets Net Current Assets Accumulated Losses Miscellaneous Expenditure
IV.
Performance of Company (Amount in Rs.Thousands)

Turnover Profit/(Loss) Before Tax Earnings Per Share (Rs.)
V.
Generic Names of Three principal Products/Services of Company (as per monetary terms)
Production Description Credit Rating Advisory Services Information Services
Directors
Consolidated Balance Sheet As At March 31, 2002

Schedule Sources of Funds Shareholders Funds Share Capital Reserves & Surplus Deferred Tax Liability Application of Funds Fixed Assets Gross Block Less : Depreciation Net Block Add : Capital Work in Progress & Advances Investments Current Assets, Loans & Advances Current Liabilities & Provisions Miscellaneous Expenditure Share Issue Expenses (to the extent not written off ) D E F C A B
62,000,140 627,515,237 34,500,000 724,015,377
62,000,140 586,796,740 -648,796,880
705,024,511 240,883,533 464,140,978 5,227,240 218,880,471 (172,070,485) 1,337,203 469,368,218 206,499,970
610,353,757 176,747,115 433,606,642 4,503,312 403,100,482 46,809,986 (242,002,777) 161,097,705 2,089,251 438,109,954 47,499,970
724,015,377 Significant Accounting Policies and Notes to the Accounts Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner L&M
648,796,880
Directors
Consolidated Profit and Loss Account for the year ended March 31, 2002
Income Income from Operations Other Income Extraordinary items: Profit on sale of Fixed Assets Profit on sale of Property Rights Profit on sale of Investments Expenses Staff Expenses Establishment Expenses Other Expenses Extraordinary items: Loss on sale of Investments Loss on sale of Fixed Assets Profit after extraordinary items Provision for Contingencies (made)/written back (Refer Note 15, Schedule L) Profit before Depreciation & Tax Less : Depreciation Profit before Tax Less : Income Tax arrears ( Refer Note 9, Schedule L) Less : Provision for Taxation (Refer Note 7, Schedule L) Profit after Tax Add: Profit brought forward from previous years Appropriations Proposed Dividend Corporate Dividend Tax General Reserve Balance carried to Balance Sheet Significant Accounting Policies and Notes to the Accounts Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner L&M For and on behalf of the Board A.V. Rajwade Dr. S.A. Dave B.R. Shah M.G. Bhide Rama Bijapurkar Edward Emmer Schedule G H Current Year Rupees 683,509,921 16,689,338 488,740 -8,640,006 709,328,005 I J K 193,456,454 73,876,687 92,541,391 --359,874,532 349,453,473 (5,000,000) 344,453,473 72,729,614 271,723,859 52,451,362 103,754,000 115,518,497 26,796,740 142,315,237 40,300,000 -80,000,000 22,015,237 142,315,237 Previous Year Rupees 440,777,402 16,891,464 28,143,406 30,586,398 -516,398,670 147,154,720 63,356,147 93,087,452 40,461,096 -344,059,415 172,339,255 9,000,000 181,339,255 53,874,065 127,465,190 37,970,000 89,495,190 54,879,750 144,374,940 34,100,000 3,478,200 80,000,000 26,796,740 144,374,940
Directors

Schedule A
Share Capital Authorised : 10,000,000 Equity Shares of Rs.10 each Issued, Subscribed & Paid up : 6,200,014 Equity Shares of Rs 10 each fully paid up 62,000,140 62,000,140 100,000,000 100,000,000 As at March 31,2002 Rupees Rupees As at March 31,2001 Rupees Rupees
Schedule B
Reserves & Surplus Share Premium Account General Reserve as per last Balance Sheet Less : Transfer to Deferred Tax Liablity Add : Transfer from Profit and Loss Account Profit and Loss Account 480,000,000 (34,500,000) 80,000,000 525,500,000 22,015,237 627,515,237 80,000,000 480,000,000 26,796,740 586,796,740 80,000,000 400,000,000 80,000,000
Schedule C
GROSS BLOCK AT COST Fixed Assets Goodwill Trademarks Copyrights Land & Buildings Furniture & Fixtures Office Equipments Computers Vehicles Leased Assets (Plant & Machinery) Total Previous Year 610,353,757 111,355,236 16,684,482 408,326,513 259,670,988 57,643,744 705,024,511 176,747,115 610,353,757 144,465,216 72,729,614 53,874,065 8,593,196 240,883,533 21,592,166 176,747,115 464,140,978 433,606,642 433,606,642 263,861,297 As on 1/04/2001 Rs. 8,959,000 65,430,000 1,729,500 299,475,261 49,136,397 46,132,747 116,428,891 13,561,961 9,500,000 Additions Rs. ---Deductions Rs. ---As on 31/03/2002 Rs. 8,959,000 65,430,000 1,729,500 306,704,864 75,019,599 66,523,100 149,523,229 21,635,219 9,500,000 Upto 1/04/2001 Rs. 521,401 18,342,848 480,327 40,918,909 19,012,678 12,417,546 70,685,998 4,867,408 9,500,000 DEPRECIATION For the year Rs. 447,950 11,771,788 312,293 13,408,614 10,111,765 6,807,424 25,470,578 4,399,202 -On Assets sold Rs. 691,727 2,235,920 469,560 1,884,568 3,311,421 -Upto 31/03/2002 Rs. 969,351 30,114,636 792,620 53,635,796 26,888,523 18,755,410 94,272,008 5,955,189 9,500,000 NET BLOCK As on 31/03/2002 Rs. 7,989,649 35,315,364 936,880 253,069,068 48,131,076 47,767,690 55,251,221 15,680,030 -As on 31/03/2001 Rs. 8,437,599 47,087,152 1,249,173 258,556,352 30,123,719 33,715,201 45,742,893 8,694,553 --
11,450,414 4,220,811 28,980,782 3,097,580 21,677,743 1,287,390 35,383,943 2,289,605 13,862,354 5,789,096 ---
Note : Buildings include Rs. 490,800 (Previous Year - Rs. 490,800) in respect of shares held in Co-operative Societies.and Rs. 120,000,000 (Previous Year - 120,000,000) in respect of 4900 shares and Shareholders contribution Rs. 48,366,648 of Crisil Properties Ltd (subsidiary Company).
68
Report 15th Annual 2001 - 2002 Schedule D

Investments (At Cost) A. Long Term (Unquoted) Other investment 649,997 Equity shares of India Index Services & Products Ltd. of Rs. 10 each fully paid up. (Previous year 2,49,997 shares of Rs.10 each) As at March 31,2002 Rupees As at March 31,2001 Rupees
6,499,970
2,499,970
B. Short Term (Unquoted) 2,872,758.351 Units (Previous year 1,742,592 units) of Prudential ICICI Liquid Plan [1,846,531.107 units purchased and sold during the year] 28,797.074 Units( Previous year 17481 units) of Alliance Cash Manager Plan 3,579,706.643 Units of IDBI Principal Cash Management Fund 3,960,396.04 Units of Templton Floating Rate Bond Fund 3,549,340.266 Units of HDFC Liquid Plan [4,614,872.541 units purchased and sold during the year] NOTE :During the year the following Mutual Fund units were purchased and sold 1,898,513.085 units of DSP Merrill Lynch Liquid Plan 2,000,000 units of Birla Fixed Maturity Plan 3,701,844.06 units of Franklin Templeton Liquid Plan 4,402,795.543 units of Prudential ICICI Fixed Maturity Plan
40,000,000
22,500,000
40,000,000 40,000,000 40,000,000 40,000,000
22,500,000 ----
----206,499,970
----47,499,970
Schedule E
Current Assets, Loans and Advances A. Current Assets : Cash on Hand Bank Balances with Scheduled Banks On Current Accounts On Fixed Deposit Accounts Sundry Debtors (Unsecured - Considered Good) Debtors - over six months Other Debtors Other Interest Accrued (A) B. Loans and Advances Loans to Staff (Considered Good) (Refer note 6, Schedule L) Advances recoverable in cash or kind or for value to be received (Unsecured - Considered Good) Sundry Deposits (Refer note 6, Schedule L) Advance Taxes paid and TDS (Net of Provision for Taxation) (B)
95,077 8,107,924 43,286,202 18,596,719 55,010,243 596,942 125,693,107 23,850,529 5,730,762 29,068,015 34,538,058 93,187,364 218,880,471
99,278 41,781,719 40,054,958 19,570,801 44,393,727 540,039 146,440,522 99,459,904 51,220,047 20,536,321 85,443,688 256,659,960 403,100,482 69
Schedule F
Current Liabilities and Provisions A. Current Liabilities : Sundry Creditors Advances received from clients Other Liabilities B. Provisions : Proposed Dividend Corporate Dividend Tax thereon Provision for Contingency Provision for Tax ( Net of Advance tax paid and TDS) Provision for Gratuity Provision for Leave Encashment
As at March 31, 2002 Rupees 41,595,254 34,264,237 43,890,494 119,749,985 40,300,000 -5,000,000 233,500 229,000 6,558,000 52,320,500 172,070,485
As at March 31, 2001 Rupees 55,084,821 44,496,963 98,867,293 198,449,077 34,100,000 3,478,200 -233,500 -5,742,000 43,553,700 242,002,777 Previous Year Rupees 283,709,088 107,351,638 48,722,557 146,250 --847,869 -440,777,402
Schedule G
Income From Operations Ratings Services Advisory Services Research & Information Services Fund Services Income Web Services Income Real Time Services Income Maintenance charges recovered Training and Data Slicing income
Current Year Rupees 494,311,499 119,641,021 53,784,087 5,127,850 1,092,714 9,000,000 -552,750 683,509,921
Schedule H
Other Income Income from Investments (TDS Rs. Nil, Previous year Rs.Nil) Interest on Deposits and Loans (TDS - Rs.799,189 Previous Year - Rs. 946,442) Lease Income Foreign Exchange Gain Miscellaneous Income
376,461 6,111,079 9,747,908 453,710 180 16,689,338
574,646 5,932,169 4,420,215 -5,964,434 16,891,464
70
Report 15th Annual 2001 - 2002 Schedule I

Staff Expenses Salaries & Bonus Contribution to Provident & Other Funds Staff Training & Welfare Expenses 168,842,067 10,137,000 14,477,387 193,456,454 127,095,757 7,657,671 12,401,292 147,154,720 Current Year Rupees Pervious Year Rupees
Schedule J
Establishment Expenses Repairs and Maintenance - Buildings - Others Electricity Postage and mailing expenses Telephone expenses Insurance Rent Rates & Taxes 10,598,040 9,046,688 9,706,309 2,258,791 13,588,887 2,843,796 21,695,830 4,138,346 73,876,687 4,896,901 8,541,746 9,258,072 2,025,794 22,318,652 2,188,629 10,948,460 3,177,893 63,356,147
Schedule K
Other Expenses Printing and Stationery Travelling and Conveyance Books and Periodicals Vehicle Expenses Remuneration to Non-wholetime Directors (Refer note 10, Schedule L) Business Promotion and Advertisement Preliminary Expenditure Written off Professional Fees Software Purchase & Maintenance Expenses Bad Debts written off Auditors Remuneration (Refer note13, Schedule L) Miscellaneous Expenses (Net of Recoveries Rs.142,666) 10,468,275 205,14,905 3,018,484 3,958,505 3,585,000 2,921,909 752,048 27,073,045 8,238,538 9,223,544 428,250 2,358,888 92,541,391 12,081,074 214,50,264 2,409,213 3,062,285 3,470,000 5,736,378 752,048 23,489,894 12,143,999 6,171,622 258,861 2,061,814 93,087,452 71
Schedule L SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS (CONSOLIDATED)

1.
1.1
Accounting Policies
Basis of Accounting The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.
1.2
Fixed Assets and Depreciation / Amortisation All fixed assets are stated at cost which comprises of purchase price, duties and any directly attributable cost of bringing the asset to its working condition for intended use. Depreciation on the assets has been provided on written down value at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Trademarks and Copyrights has been provided at the rates prescribed by the Income Tax Act, 1961. Goodwill is amortised over a period of 20 years. Depreciation on assets added, sold or discarded during the year has been provided on pro-rata basis.
1.3
Investments Investments are stated at lower of Cost and Fair value. Provision for diminution in case of long term investments is made if the decline in value is other than temporary in nature.
1.4
Revenue Recognition Income from Operations Income from Operations comprises of income from rating and surveillance activities, credit assessments, special assignments, advisory services and subscriptions to information products. Rating Fees are deemed to accrue on the date of assignment of rating. Surveillance fee income and subscription to information products are receivable and accounted annually on accrual basis. Fees received for credit assessments, advisory services and special assignments are fully recognised as income in the year in which such assessments/assignments are carried out. Other Income Dividends from investments are recognised in the Profit & Loss Account when the right to receive the dividends is established. Lease Income is accounted as per the Accounting Standard on Leases issued by the Institute of Chartered Accountants of India. Interest income is recognised on accrual basis.
1.5
Retirement Benefits The Company provides retirement benefits in the form of Provident Fund, Superannuation and Gratuity. Contribution to the Provident Fund is made at prescribed rates to the Provident Fund Trust / Commissioner and absorbed in the Profit and Loss Account. Liability in respect of Superannuation benefits extended to certain employees is contributed by the Company to LIC of India against a master policy @ 15% of the basic salary of such employees. The Company has taken a Group Gratuity Insurance Policy with LIC of India to secure gratuity liability. The Company accounts for gratuity liability equivalent to the premium amount payable to LIC of India every year based on a percentage of annual salary specified by LIC of India.Provision for leave encashment liability is made on actuarial basis.
1.6
Foreign Currency Transactions Income and expenditure in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction.
1.7
Miscellaneous Expenditure Share issue expenses and preliminary expenses are amortised over a period of ten years.
72

1.8 Deferred Tax Company has recognised and provided for Deferred Tax Liability as per Accounting Standard 22 Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India 2. Contingent liabilities not provided for includes Performance Guarantee given to East African Development Bank Rs.3,599,093 and income tax matters pending in appeal Rs.Nil (Previous Year - Rs. 51,792,301). The Company has, however, paid all the tax demands under protest. Estimated amount of contracts remaining to be executed on capital account and not provided for aggregate to Rs.1,419,060 (Previous Year Rs. 7,616,973). Uncalled Liability on shares partly paid and held as investments Rs.Nil ( Previous year Rs. 7,499,997 ) Buildings include Rs.26,438,200 paid for acquiring premises for which conveyance of title in favour of the Company is pending.Depreciation on these premises have been provided for the full year. Loan outstanding from Officers of the Company - Rs. 4,100,383. (Previous Year Rs.- 5,133,884). Maximum amount outstanding at any time during the year - Rs.5,478,747 . (Previous Year - Rs. 5,202,135). Sundry Deposits include Rs.1,000,000 (Previous Year - Rs. 1,000,000) paid to Officers of the Company. Maximum outstanding at any time during the year - Rs.1,000,000(Previous year Rs.1,000,000) Provision for Taxation - Rs.103,754,000 (Previous year Rs.37,970,000) includes Provision for Income Tax Rs. 98,954,000. (Previous year - Rs. 37,570,000), Wealth Tax - Rs. 5,00,000 ( Previous year - Rs. 400,000) and Deferred tax Rs. 4,300,000 (Previous year - Rs. Nil). The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. The Company has changed the method of accounting in respect of initial rating fees received which in the past were deemed to accrue over a period of 12 months from the date of assignment of rating. These fees are now deemed to accrue fully on the date of assignment of rating. As a result of the change, rating income for the year is higher by Rs.68,282,624 with consequential effect on profits. Arising out of the above change, the corresponding taxes paid under protest relating to earlier years amounting to Rs 52,451,362 have been written off to Profit and Loss account. Current Year Rupees 3,477,200 2,700,000 680,400 1,392,579 8,250,179 Non - wholetime Directors: Fees paid Commission Payable Computation of Net Profit in accordance with Section 198 of the Companies Act, 1956 for calculation of commission payable to Directors : Profit before Taxation 286,226,372 133,844,345 73 485,000 3,100,000 3,585,000 535,000 2,935,000 3,470,000 Previous Year Rupees 3,251,720 1,550,000 530,316 556,915 5,888,951
3. 4. 5. 6.
7.
8. 9.
10. Managerial Remuneration : Wholetime Directors: Salary Commission Contribution to PF, Superannuation & Gratuity Fund Perquisites
Add : Remuneration to Wholetime Directors Remuneration to Non-wholetime Directors Depreciation charge in Accounts Profit on sale of assets under Section 349 Loss on sale of Investments Less : Depreciation as per Section 350 Profit/(Loss) on sale of assets as per books Profit on sale of Investments Net Profit under Section 198 Commission payable to each Wholetime Director upto 3% of the above Commission payable to Non-Wholetime Directors 11. Earnings in foreign exchange : Rendering advisory services and Sale of information products 12. Expenditure in foreign currency : Foreign travel Others 13. Auditors Remuneration includes : Audit fees (includes service tax Rs. 13,750. Previous year 9,000) Tax Matters (includes service tax Rs. 3,800. Previous Year - Rs.1,500) Other matters (includes service tax Rs. 2,900. Previous year Rs.1,250 ) Out of Pocket Expenses 14. Amount remitted during the year in foreign currency, on account of dividends Number of shareholders Number of equity shares of Rs 10 each held by them on which dividend was paid Year to which dividend related Amount remitted (Rs)
8,250,179 3,585,000 70,125,450 488,740 -368,675,741 70,125,450 488,740 8,640,006 289,421,545 2,700,000 3,100,000 39,769,827 6,275,140 5,269,488 288,750 79,800 52,650 7,050 428,250 1 600,000 2000-2001 3,300,000
5,888,951 3,470,000 53,816,113 28,143,406 40,461,096 265,623,911 37,255,052 28,143,406 -200,225,453 1,550,000 2,935,000 19,688,452 5,299,418 3,629,121 189,000 31,500 31,250 7,111 258,861 1 600,000 1999-2000 3,300,000
15. During the year the Company has created a Provision for Contingencies amounting to Rs. 50 lacs which, in the opinion of the management, is considered necessary and adequate to provide, inter alia, for possible losses, expenses or claims arising out of disputes during conduct of business. 16. At the fourteenth Annual General Meeting held on August 2, 2001 the shareholders approved the Employee Stock Option Plan (ESOP) for the employees and whole time Directors of the Company and its subsidiaries. During the year Company has issued 56,300 stock options to 44 employees, details of which is given in Directors Report. 74

17 Segment Reporting Segment Reporting as at March 31,2002 Particulars Ratings Operating Revenue Segment Results Other unallocable income over expenses Operating Profit Depreciation Provision for Contingencies Profit Before Tax Income Tax arrears Provision for Income Tax Net Profit after Tax * includes accounting adjustment of Rs. 682.83 lacs. Segment Reporting as at March 31, 2001 Particulars Ratings Operating Revenue Segment Results Other unallocable Income over expenses Operating Profit Depreciation Provision for Contingencies Profit Before Tax Provision for Income Tax Net Profit after Tax Notes to Segment Reporting 1. The Companys operations predominantly relate to providing rating, advisory, research and information services. Accordingly, revenues earned through rendering of these services represents the primary basis of segment information set out above. 2. The Company has no geographical segments. 3. Previous year figures are given for comparison purpose and are not audited. 4. Fixed assets used in the Companys business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous. 75 283,709,088 143,885,973 Business segments Advisory 107,351,638 27,199,422 Information Other Services 48,722,557 994,119 440,777,402 154,912,285 17,426,970 172,339,255 (53,874,065) 9,000,000 127,465,190 (37,970,000) 89,495,190 1,434,872 (17,607,982) TOTAL 325,344,939 Business segments Advisory 44,290,423 Information Other Services 53,784,087 15,773,314 683,509,921 348,616,934 836,539 349,453,473 (72,729,614) (5,000,000) 271,723,859 (52,451,362) (103,754,000) 115,518,497 3,357,586 (24,376,014) 494,311,499* 119,641,021 TOTAL
18. Earnings Per Share Profit After Taxation as per Profit and Loss Account Number of Shares outstanding Basic Earning per Share ( Face Value Rs. 10 per share ) 19. Related Party Disclosure Name India Index Services & Products Limited Mr. R.Ravimohan Relationship Joint Venture Whole time Director
2001-02 115,518,497 6,200,140 18.63
2000-01 89,495,190 6,200,140 14.43
Nature of Transactions Investment in Equity Shares ( Investment made during the year Rs.4,000,000) Remuneration Loan Sundry Deposits Rent Paid Remuneration Loan
Amount (Rs.) 6,499,970 4,464,317 1,977,847 1,000,000 120,000 3,785,863 2,122,536
Mr. Hemant Joshi
Whole time Director
20. Previous Figures are given for comparison purpose and are not audited. 21. Previous years figures have been regrouped where necessary to conform to this years classification. Per our Report attached For S.B.Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner For and on behalf of the Board A.V. Rajwade Dr. S. A.Dave B.R. Shah M.G. Bhide Rama Bijapurkar Edward Emmer
Directors
76
Report 15th Annual 2001 - 2002 Schedule M Consolidated Cash Flow Statement for the year ended March 31, 2002
Rupees 271,723,859 72,729,614 5,000,000 (488,740) 752,048 (8,640,006) (6,487,540) (9,747,908) 324,841,327 Current Year Rupees
A.
Cash Flow from Operating Activities : Profit Before Tax Adjustments for : Depreciation Provision for contingency Profit on sale of Fixed Assets Miscellaneous Expenditure written off Profit on Sale of Investments Interest / Dividend received Lease Income Operating Profit before Working Capital changes Adjustments for : Trade & Other Receivables Sundry Debtors Sundry Deposits Accrued Interest Loans Advances Advance Payment of Tax & TDS Trade Payables Sundry Creditors Other Liabilities Provision for Gratuity Provision for Leave Encashment Cash generated from Operations Direct Taxes provided Cash Flow before Extra ordinary items Extra Ordinary items Net Cash from Operating Activities
(9,642,434) (8,531,694) (56,903) 75,609,375 45,489,285 50,905,630 (13,489,566) (65,209,525) 229,000 816,000 400,960,495 (156,205,362) 244,755,133 -244,755,133
B. Cash Flow from Investing Activities : Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments (112,079,164) 8,580,025 (374,000,000) 77
Consolidated Cash Flow Statement for the year ended March 31, 2002
Rupees Sale of Investments Interest received Dividend received Profit on Sale of Investments Lease Income Net Cash used in Investing Activities C. Cash Flow from Financing Activities : Proceeds from Issue of Share Capital Dividend & Dividend Tax paid Net Cash used in Financing Activities Net Increase/(decrease) in Cash and Cash Equivalents Cash and Cash Equivalents (Opening balance) Cash and Cash Equivalents (Closing balance) Net Increase/(decrease) in Cash and Cash Equivalents -(37,578,200) (37,578,200) (30,446,752) 81,935,955 51,489,203 (30,446,752) 215,000,000 6,487,540 -8,640,006 9,747,908 (237,623,684) Current Year Rupees
Directors
B.V. Bhargava R.Ravimohan Hemant Joshi Roopa Kudva Shrikant Dev
78
Crisil Research & Information Services Limited

3rd Annual Report and Accounts 2001-2002
Board of Directors
R. Ravimohan Hemant Y. Joshi Anjali Forbes
Senior Management Team at CRIS Ltd.

Sameer Bhakhri - CEO G. Ravishankar - Head - Research Rajeev Singhal - Head - Business Development
Auditors
S.B. Billimoria & Co.
Bankers
HDFC Bank Ltd.
Registered Office
261-262, Solitaire Corporate Park, 151, Andheri Kurla Road, Andheri (East), Mumbai - 400 093.
79
DIRECTORS REPORT
To the Members, Your Directors present the Third Annual Report of the Company with the Audited Accounts for the year ended March 31, 2002.
Performance
A summary of your Companys financial performance is given below : Year ended March 31, 2002 (Rs. lacs) Total Income for the year was Profit before depreciation and taxes was Deducting therefrom depreciation of Profit before tax was Deducting therefrom taxes of Profit after tax which has been carried to the Balance Sheet 4.42 7.25 3.50 4.80 -7.97 -12.05 7.97 12.05 205.00 180.00 Year ended March 31, 2001 (Rs. lacs)
Dividend
Considering the long-term interest of the Company and as a matter of prudence, it is proposed to plough back profits to build up reserves. Your Directors, therefore, do not recommend payment of dividend for the year ended March 31, 2002.
Review of Operations and Outlook Your Company continues to provide customised research and information services to meet diverse needs and continues to proactively provide analytical support to enable entities in the corporate and financial sectors to manage and operate in the current era of global competition. An integrated electronic version offering all information and analysis on the Indian economy, industries as well as companies was developed and installed for clients. The Company also increased coverage of industries and companies and strengthened the product delivery capabilities. Foreign Exchange Earnings and Expenditure
The Company had no foreign exchange earnings and outgoing during the year ended March 31, 2002.
80
Personnel
The staff strength as on March 31, 2002 stood at 62 as against 56 at the end of the previous year. The Company did not employ any person covered by section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975.
Directors
Mr. R. Ravimohan retires by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.
Auditors
M/s. S. B. Billimoria & Co. will retire as Auditors at the ensuing annual general meeting and are eligible for re-appointment.
Directors Responsibility Statement as required under the provisions contained in Section 217(2AA) of the Companies Act, 1956 :
Your Directors hereby confirm that: (i) (ii) in the preparation of the annual accounts, the applicable accounting standards have been followed. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. the Directors have prepared the annual accounts on a going concern basis.
(iii)
(iv)
Acknowledgements
The Board of Directors wish to place on record their sincere appreciation of the valuable services rendered by the employees to the Company. On behalf of the Board of Directors R. Ravimohan Hemant Joshi Director Director Mumbai, April 26, 2002
81
COMPLIANCE CERTIFICATE
Registration No. of the Company Nominal Capital : 11-123304 : Rs.3,00,00,000/-
To, the Members of CRISIL RESEARCH & INFORMATION SERVICES LIMITED 261-262, Solitaire Corporate Park, 151, Andheri Kurla Road, Andheri (East), Mumbai - 400 093 We have examined the registers, records, books and papers of CRISIL RESEARCH & INFORMATION SERVICES LIMITED (hereinafter referred to as the Company) as required to be maintained under the Companies Act, 1956, (hereinafter referred to as the Act) and the rules made thereunder, and also the provisions contained in the Memorandum and Articles of Association of the Company in respect of or for the financial year ended on 31st March, 2002 (hereinafter referred to as the financial year). In our opinion and to the best of our information and according to the examinations carried out by us and explanations furnished to us by the Company, its officers and agents, we certify that, in respect of the said financial year, 1. Except the following Registers, which either were not required to be maintained by the Company or where there were no entries required to be made therein, the Company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made thereunder and all entries therein have been duly recorded.
Statutory Registers
1. 2. 3. 4. Register of investment not held in Companys name under section 49 of the Act. Register of public deposits under section 58A of the Act. Register of charges under section 143 of the Act. Register of loans and investments made, guarantee given or security provided under section 372A of the Act. Register of sealed documents. Register of Dividend/interest. Register of Proxies.
Non-statutory Registers
1. 2. 3. 2.
The Company has duly filed the forms and returns, as stated in Annexure-B to this certificate, with the concerned Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act and the rules made thereunder. The Company, being a public company, has the minimum paid-up capital, as prescribed under the Act. The Board of Directors duly met 4 times respectively on 27th April, 2001and 20th September, 2001, 27th December, 2001 and 27th February, 2002, in respect of which meetings, proper notices were given and the proceedings were properly recorded and signed in the Minute Book maintained for the purpose. There were no circular resolutions passed during the financial year.
3. 4.
82
5. 6.
The Company has not closed its Register of Members during the financial year. The Annual General Meeting of the shareholders of the Company, for the financial year ended on 31st March, 2001, was held on 27th September, 2001, at a shorter notice, then prescribed under the Act and its Articles of Association, after obtaining the consents from all the members of the Company in that regard, and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose. No Extra-ordinary General Meeting of the shareholders of the Company was held during the financial year. The Company has not advanced any loan to its directors or persons or firms or companies referred to under section 295 of the Act. The Company has not entered into any contracts falling within the purview of Section 297 of the Act, as per the explanations provided by the officers of the Company. The Company was not required to make any entries in the register maintained under Section 301 of the Act, since there was no contract, falling within the purview of Section 297 of the Act, entered into, during the financial year. As there were no instances falling within the purview of Section 314 of the Act, the Company has not obtained any approvals from the Board of Directors, Members or Central Government, as the case may be. The Company has not issued any duplicate certificates during the financial year. The Company has: (i) not delivered the certificates on allotment of securities and on lodgement thereof for transfer/transmission or any other purpose in accordance with the provisions of the Act, since there were no allotment, transfer or transmission of shares in or debentures of the Company, during the financial year. not deposited any amount in a separate bank account as no dividend was declared during the financial year.
7. 8. 9. 10.
11. 12. 13.
(ii)
(iii) not posted warrants or cheques to the members of the Company as no dividend was declared during the financial year. (iv) not transferred any amount to Investor Education and Protection Fund, since there was no amount, on account of unpaid dividend account, application money due for refund, matured deposits, matured debentures and the interest accrued thereon, lying with the Company, and which was required to be transferred to the said Fund. duly complied with the requirements of section 217 of the Act.
(v) 14.
The Board of Directors of the Company is duly constituted. There was no appointment of additional Directors, alternate Directors and Directors to fill casual vacancy during the financial year. However, Ms. Anjali Forbes, who, having been earlier appointed as the additional Director of the Company at the meeting of the Board of Directors of the Company held on 28th December, 2000, and being therefore liable to retire at the Annual General Meeting held on 27th September, 2001, has been appointed as the Director of the Company at the above-referred Annual General Meeting of the shareholders of the Company. The Company has not appointed any Managing Director or Whole-time Director during the financial year. The Company has not appointed any sole-selling agent during the financial year.
83
15. 16.

17. As per the explanations provided by the officers of the Company, the Company was not required to obtain, during the financial year, any approval of Central Government, Company Law Board, Regional Director, Registrar of Companies and/or such other authorities as prescribed under various provisions of the Act. The directors have, wherever applicable, disclosed, pursuant to the provisions of the Act and the rules made thereunder, their interests in other firms, companies or otherwise, to the Board of Directors. The Company has not issued any shares, debentures or other securities, during the financial year. The Company has not bought back any shares during the financial year. There was no redemption of preference shares or debentures during the financial year. There were no transactions, during the financial year, necessitating the Company to keep in abeyance the rights to dividend, rights shares and bonus shares pending registration of transfer of shares. The Company has not accepted or renewed any deposits, including any unsecured loans, falling within the purview of Section 58A, during the financial year. The Company has not made any borrowings during the financial year ended 31st March, 2002. The Company has not made any loans or advances or given guarantees or provided securities to other bodies corporate, and consequently, no entries have been made in the register kept for the purpose. The Company has not altered the provisions of its Memorandum of Association, with respect to situation of the Registered Office of the Company from one state to another, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to the objects of the Company, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to name of the Company, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to share capital of the Company, during the financial year. The Company has not altered, during the financial year, its Articles of Association. As per the explanations given by the officers of the Company, during the financial year, there was no prosecution initiated against or show cause notice received by the Company and no fines and penalties or any other punishment was imposed on the Company, for committing offences under the act. The Company has not received, during the financial year, any money as security from any of its employees, as per the explanations provided by the officers of the Company. As per the explanations given by the management of the Company, the Company has deposited both employees and employers contribution to Provident Fund with prescribed authorities pursuant to Section 418 of the Act. For M. G. KALELKAR & ASSOCIATES MILIND G. KALELKAR Proprietor FCS - 3854, CP - 1877 Place : Mumbai Date : 26-04-2002
84
18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
32. 33.
REGISTERS AS MAINTAINED BY THE COMPANY

STATUTORY REGISTERS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Register of members and debenture holders with their index, if applicable, under sections 150 and 152 of the Act. Minutes Books for minutes of meeting of the Board and shareholders under section 193 of the Act. Books of Account under section 209 of the Act. Register of contracts in which Directors are interested, under section 301 of the Act. Register of Directors, Managing or Wholetime Directors, Manager and Secretary under section 303 of the Act. Register of Directors Shareholdings under section 307 of the Act. Register of Directors attendance at meeting(s) of the Board, as per Regulation 71 of Table A. Register of shareholders attendance at their meeting(s) under section 174 of the Act. Register of Certificates and Register of Renewed and Duplicate Certificate. (Rule 4 of the Companies [Issue of Share Certificates] Rules, 1960). Register of Fixed Assets.
Annexure - I
NON-STATUTORY REGISTERS
1. Register of application and allotment of securities. 2. Register of transfer/transmission of shares, debentures and other securities.
Annexure - II
Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government, or other authorities during the financial year ended 31st March, 2002. Sr. No. Form / Return No. Filed under Section(s) For the matter(s) Date of filing Whether filed If delay in filing, within prescribed whether requisite time [Yes/No] additional fee paid [Yes/No] Yes No
1.
Form No. 23AA
209 (1)
Notice of address at which Books of Account are maintained Annual Return
26-9-2001
2.
Schedule V Part II made upto 27-09-2001
159
15-10-2001
Yes
No
3.
Form No. 32
302(2)
Appointment of of Director of the Company Annual Accounts Financial year ended 31st March, 2001
15-10-2001
Yes
No
4. 5.
Balance Sheet as at 220 31st March, 2001 Certificate of Compliance Proviso to section 383A
18-10-2001 18-10-2001
Yes Yes
No No
85
AUDITORS REPORT
TO THE MEMBERS OF CRISIL RESEARCH & INFORMATION SERVICES LIMITED 1. We have audited the attached Balance Sheet of CRISIL RESEARCH & INFORMATION SERVICES LIMITED as at March 31, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to in paragraph 3 above : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
2.
3.
4.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c) (c) (e) the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account; in our opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; on the basis of the written representations from the Directors, taken on record by the Board of Directors, and according to the information and explanations given to us, none of the Directors is disqualified as on March 31, 2002 from being appointed as a Director under Section 274 (1)(g) of the Companies Act, 1956. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2002; and in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date. For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, April 26, 2002
86
(f)
Mohammed Z. Merchant Partner

(Referred to in paragraph 3 of our report of even date) 1. The Company has neither accepted from nor granted any loan to companies, firms or parties listed in the register maintained under Section 301 of the Companies Act, 1956 or companies under the same management within the meaning of Section 370(1B) of the Companies Act, 1956. 2. The parties to whom interest free loans or advances in the nature of loans have been given by the Company are repaying the principal amounts wherever stipulated. 3. The internal control procedures of the Company relating to invoicing of services are commensurate with the size of the Company and the nature of its business. 4. There were no transactions of services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956. 5. 6. The Company has not accepted any deposits from the public. In our opinion the internal audit function carried out during the year by a firm of chartered accountants appointed by the management were commensurate with the size of the Company and the nature of its business. 7. The Company has been regular in depositing Provident Fund dues with the appropriate authorities. We are informed that the provisions of the Employees State Insurance Scheme are not applicable to the Company. 8. There were no undisputed amounts payable in respect of income-tax, wealth tax, sales tax, customs duty and excise duty outstanding as at March 31, 2002 for a period of more than six months from the date they became payable. 9. According to the information and explanations given to us and the records of the Company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. 10. The Company does not have a system of allocation of man hours utilized to relative jobs.
For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, April 26, 2002 Mohammed Z. Merchant Partner
87
Crisil Research & Information Services Ltd.

As at March 31,2002 Rupees As at March 31,2001 Rupees
Schedule Sources of Funds Shareholders Funds Share Capital Reserves & Surplus A B
2,500,000 1,314,959 3,814,959
2,500,000 868,361 3,368,361
Application of Funds Current Assets, Loans & Advances Current Liabilities & Provisions C D 6,932,229 (3,117,270) 3,814,959 Significant Accounting Policies and Notes to the Accounts I 6,120,402 (2,752,041) 3,368,361
Per our Report attached For S. B. Billimoria & Co. Chartered Accountants
For and on behalf of the Board
R. Ravimohan Mohammed Z. Merchant Partner Mumbai : April 26, 2002 Hemant Joshi Anjali Forbes Mumbai : April 26, 2002
Director Director Director
88
Crisil Research & Information Services Ltd.

Income Income from Operations Other Income (TDS Rs.13,165, Previous Year Rs. Nil) Expenditure Staff Expenses Other Expenses Establishment Expenses Profit before Tax Less : Provision for Taxation Profit after Tax Add :Profit brought forward from previous year Appropriations Balance carried to Balance Sheet 1,314,959 1,314,959 Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants R. Ravimohan Mohammed Z. Merchant Partner Mumbai : April 26, 2002 Hemant Joshi Anjali Forbes Mumbai : April 26, 2002 Director Director Director I For and on behalf of the Board 868,361 868,361 F G H 17,771,393 1,186,174 746,248 19,703,815 796,598 350,000 446,598 868,361 15,732,099 832,554 230,419 16,795,072 1,205,128 480,000 725,128 143,233 E Schedule Current Year Rupees 20,400,000 100,413 20,500,413 Previous Year Rupees 18,000,000 200 18,000,200
89

Schedule A
Share Capital Authorised : 25,000 Equity Shares of Rs.100 each 275000 - 11% Non-cumulative Redeemable Preference Shares of Rs. 100 each redeemable on the expiry of 10 years from the date of issue. Issued, Subscribed & Paid up : 25,000 Equity Shares of Rs.100 each fully paid up (All the shares are held by the holding company, The Credit Rating Information Services of India Limited) As at March, 31 2002 Rupees 2,500,000 27,500,000 30,000,000 2,500,000 As at March, 31 2001 Rupees 2,500,000 27,500,000 30,000,000 2,500,000
Schedule B
Reserves & Surplus Profit and Loss Account 1,314,959 1,314,959 868,361 868,361
Schedule C
Current Assets, Loans and Advances A. Current Assets : Cash on Hand Bank Balances with Scheduled Banks On Current Accounts On Fixed Deposit Account Interest Accrued Sundry Deposits
24,942 1,203,490 4,030,760 35,699 100,000 5,394,891 228,680 1,279,806 28,852 1,537,338 6,932,229
9,339 5,483,154 ---5,492,493 51,668 576,241 -627,909 6,120,402
(A)
B. Loans and Advances Loans to employees (Unsecured considered good) Advance Taxes paid and TDS (Net of Provision for Taxation) Advances Recoverable in Cash/Kind (B)
Schedule D
Current Liabilities and Provisions A. Current Liabilities : Sundry Creditors Other liabilities B. Provisions Provision for leave encashment Provision for Gratuity
TOTAL (A+B)
2,651,270 -271,000 195,000 3,117,270
2,258,351 122,690 371,000 -2,752,041
90
Schedule E
Other Income Interest on Bank Deposit Miscellaneous Income
Current Year Rupees 100,233 180 100,413
Preious Year Rupees -200 200
Schedule F
Staff Expenses Salaries Contribution to Provident Fund Staff Welfare Expenses Staff Training Expenses Medical Reimbursement Other staff expenses
15,673,799 759,293 429,122 259,849 520,874 128,456 17,771,393
14,619,106 544,771 86,023 -418,238 63,961 15,732,099
Schedule G
Other Expenses Audit Fees ( Refer note 4 - Schedule I) Brokerage Charges Books & Periodicals Conveyance Travelling Printing & Stationery Professional Fees Vehicle Expenses Miscellaneous Expenses
38,850 26,000 51,844 240,211 378,798 72,072 157,240 216,340 4,820 1,186,174
26,250 -41,172 230,419 440,803 42,009 7,733 -44,168 832,554
Schedule H
Establishment expenses Repairs and Maintenance - Building - Others Equipment Maintenance Insurance charges Communication Expenses Rent 34,107 104,039 2,300 279,673 170,129 156,000 746,248 79,501 48,717 -48,021 54,180 -230,419
91

Schedule I SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS 1.
1.1
Accounting Policies
1.2
Revenue Recognition Income from Operations Income from Operations comprises of income from professional services rendered in the area of research and information which are accounted on accrual basis. Other Income Interest income is recognised on accrual basis.
1.3
Retirement Benefits The Company provides retirement benefits in the form of Provident Fund. Contribution to the Provident Fund is made at prescribed rates to the Regional Provident Fund Commissioner and absorbed in the Profit and Loss Account.Company is not liable to make provision for Gratuity,however provision is made on actual basis.Provision for Leave Encashment is made on acturial basis
2. 3.
The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. Related Party Disclosure : Name The Credit Rating Information Services of India Ltd. Relationship Holding Company Nature of Transaction Professional fees Received Equity Share Capital 2001-02 26,250 12,600 38,850 Amount (Rs.) 20,400,000 2,500,000 2000-01 26,250 -26,250
4.
Auditors Remuneration includes : Audit fees [ includes service tax 1250. Previous year - 1250] Tax Matters (includes service tax Rs. 600 )
5.
Previous years figures have been regrouped where necessary to conform to this years classification.
R. Ravimohan Mohammed Z. Merchant Partner Mumbai : April 26, 2002

92
Hemant Joshi Anjali Forbes Mumbai : April 26, 2002

Registration No. Balance Sheet Date 3 1 . 0 1 3 2 3 . 3 0 0 4 2 State Code 1 1 2 0
II.


Total Liabilities 3 2 8 5 N N 3 8 N 2 0 5 7 1 7 . 1 0 i i 1 i 0 9 8 5 0 l l 5 l 0 6 6 Total Expenditure Profit/(Loss) After Tax Dividend Rate % Item Code No. N o t A p p l i c a b l e 1 9 7 4 N 0 4 i 4 7 l Total Assets Reserves & Surplus Unsecured Loans Investments Miscellaneous Expenditure 3 1 8 3 N N N 1 1 i i i 5 5 l l l
Source of Funds
Net Fixed Assets Net Current Assets Accumulated Losses
IV.

V.
Production Description Professional Research and Information Services
R. Ravimohan Mohammed Z. Merchant Partner Mumbai : April 26, 2002 Hemant Joshi Anjali Forbes Mumbai : April 26, 2002
93
94
Crisil.Com Limited
2nd Annual Report and Accounts 2001-2002
Board of Directors
R. Ravimohan Hemant Y. Joshi Mukarram Bhagat
Senior Management Team at Crisil.Com Ltd.

Keya Sarkar - President - Marketing, Web and Wire Services Feroze Chandra - President - MarketWire Services Ajit Singh - Head Mutual Fund - Product Chandru Badrinarayan - Head - Fixed Income Alok Agrawal - Head Business Development - Mutual Fund
Auditors
Bankers
ICICI Bank Ltd.
Registered Office
CRISIL House, 121/122, Andheri- Kurla Road, Andheri(E), Mumbai - 400 093.
95
Crisil.Com Limited
DIRECTORS REPORT
To the Members, Your Directors present the Second Annual Report of the Company with the Audited Accounts for the year ended March 31,2002.
Performance
A summary of your Companys financial performance is given below : Year ended March 31,2002 (Rs. Lacs) Total Income for the year was Loss before depreciation was Adding depreciation thereto Resultant loss which has been carried to the Balance Sheet 208.81 (138.00) (26.04) (164.04) Period ended March 31, 2001 (Rs. Lacs) 91.71 (81.03) (0.58) (81.61)
Dividend
In view of the losses, your Directors do not recommend any dividend for the year ended March 31,2002.
Review of Operations and Outlook Financial Review

Your Company has achieved a substantial growth in business generation during the year under review to nearly Rs. 3 crores against Rs. 1 crore in the previous year. Rapid growth in business volume is expected to be repeated in the next fiscal year too with the Company putting in place a sound, integrated business model of its Capital Markets research and Real-time and Web-based Market Information businesses. While the Company continues to make a loss in the second year of its operations, this is close to the budgeted amount for the year. With the rapid expansion in topline being achieved, the Company is expected to substantially reduce its loss in the next financial year and could break-even. The Companys business plan envisaged a 3-year gestation period through March 2003 and its current business and operations momentum indicates that it is on track.
Operational Review
Information Business The Company launched CRISIL MarketWire (CMW), a Real-time Financial Market Information service, in October 2001 by taking over the operations of the erstwhile Bridge News. Today, CMW is the leading source of real-time news and commentary on Indias fixed income market. Manned by about 20 experienced journalists, the news service provides a blow-by-blow account of developments in all segments of this market on a real time basis.
96
Most recently, CRISIL MarketWire has launched the CRISIL FundsWire (CFW), which focuses on the mutual fund industry. Besides 40-50 stories daily on the industry, CRISIL FundsWire also provides information tools to its clients. These tools and databases, developed by the Companys Mutual Funds Ranking and Research Services division, allow customers to search and compare the performance of over 300 schemes of around 35 Asset Management Companies (AMCs) in India. The real-time version of the CMW service is currently offered on the terminals of MoneyLine Telerate, the successor to Bridge Information Services. The service can also be accessed on the Web at www.crisilmarketwire.com. At present, the site is offered on a free-to-view, trial basis but will shortly be offered as a priced subscription. Over 500 of finance sector participants depend on CRISIL MarketWires news. These clients include the Reserve Bank of India, the biggest commercial banks, foreign banks in India, bond dealers and mutual fund managers. CRISIL has aimed to fuse MarketWires breaking news capabilities with its analytical capabilities. The strength of this fusion was demonstrated on February 28, 2002, in the live coverage and impact-analysis of the Government of Indias annual budget. Within minutes of the news teams live reporting on the contents of the budget, the CRISIL team of over 100 analysts gave the markets instant briefs on the impact of the various fiscal and budgetary measures even as it was being detailed in the countrys Parliament The news and analysis - we call it Breaking Views - was published on the real-time platform of MoneyLine Telerate, CNBCs India television channel, and on www.crisilbudget.com. The Company also successfully developed and launched the new www.crisilratings.com website in October 2001 with rich, dynamic information on CRISIL Ratings actions, analytical views, historical trends and archived data. This site is being sold on a subscription basis and has met with good response from the banking and funds industry.
Capital Markets Business Mutual Funds Division

The Companys Mutual Funds Ranking & Research Services division achieved some key milestones during the year. Its CRISIL CPRs (Composite Performance Rankings) have gained wide acceptance by the leading players in the industry. A dozen-odd Fund Houses use CPRs in their marketing and publicity materials to mobilise higher resources for their various schemes. Several funds also subscribe to its CPR Tracker service-a customised, monthly research service that evaluates scheme performances on the various CPR risk and return drivers. As such, CPR is well on its way to becoming an industry standard for selecting the best performing funds for investment by institutional and retail investors. The division has also developed an advanced Fund Risk Analytics model that X-rays a fund schemes risk and returns performance from different angles. Risk Analytics is a quarterly risk/performance monitoring of MF portfolio performances, overall and on a disaggregated basis, using measurements from Modern Portfolio Theory (Information ratio, Sharpe, Treynor, Sortino risk, Fama decomposition, etc.) analyses fund managers style (stock picking and asset allocation skills ) and also does sectoral performance attribution by highlighting the sources of risk and return in various sectors in the fund portfolio. The module also analyses the market timing skills of the fund manager, during the evaluation period. This model has found good initial response from the fund industry. A versatile desk-top tool, CRISIL Mutual Funds Portfolio Tracker, with strong querying and report-building facilities, built on an exhaustive database covering the full portfolios of over 40 schemes is currently under test marketing. The
97
Crisil.Com Limited
Portfolio Tracker, capable of identifying fund managers holding patterns and changing preferences, scrip-wise and industry-wise, enables asset managers to keep a track of investing trends and enables dealers to place and source securities across various asset classes.
Tie-up with S&P Fund Services

The Company signed a Letter of Intent during the year with S&P Fund Services Asia, the funds research, ranking and rating services arm of Standard & Poors USA to jointly develop and market a host of new products and services for the Indian Funds Industry. These will include the internationally well known S&P-Mircropal Star Rankings, Fund House/ AMC Ratings, desk-top workstations and offshore / domestic Indian funds databases. The two firms have already jointly implemented the integration of their India fund databases, the first essential step for launching these new products & services, and hope to sign a contractual agreement shortly.
Fixed Income Division

The Companys fixed income division also achieved key milestones during the year. Most notably, it developed the CRISIL Gilt Valuer, an innovative model that mimics bond dealers intuitive price discovery process for valuing illiquid government securities on a daily basis. From February 18, 2002, mutual funds in India have been mandated by Association of Mutual Funds of India (AMFI) to use the CRISIL Gilt Valuer for calculating the daily Net Asset Values (NAVs) of their schemes as a part of its progressive drive, together with SEBI, to evolve a Uniform NAV Accounting Standard across the industry. The division has also developed a VaR (Value at Risk) model that measures the maximum probable loss that a portfolio of gilts and corporate bonds can suffer on a single day. The CRISIL VaR model is productised as a desk-top tool linked to a back-end database. A very useful and distinctive feature of this VaR tool is that it enables dealers to conduct security-wise, incremental VaR analysis and to set stop loss trigger prices for every security in the portfolio as a percentage of VaR, as defined by the users. The initial market response from banks and funds is very encouraging and the model is now being extended to cover more asset classes. The division also offers the CRISIL Treasury Analytics (CTA) model which draws conceptually from the fund risk analytics model detailed above but is appropriately modified to suit treasury portfolios and customer requirements. The CTA helps banks to improve treasury performance and bottom-lines and can also be used for a more objective, performance oriented compensation structure for the treasury function. Finally, this division too gives important support in the form of data, tools and analytical content to the Real-time CRISIL MarketWire service that covers the fixed income markets.
Issue of Shares to CRISIL

During the year, the Company issued and alloted 1,00,00,000 equity shares of Rs.1/- each fully paid-up, to The Credit Rating Information Services of India Limited (CRISIL) on 14th January,2002.
Foreign Exchange Earnings and Expenditure

The Company had no foreign exchange earnings and outgoings during the year ended March 31, 2002.
Personnel
The staff strength as on March 31,2002 stood at 51 (including 44 professionals) as against 14 (including 12 professionals). The increase was necessitated to implement the newswire project of the Company.
98
The Company did not employ any person covered by Section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees)Rules, 1975.
Directors
In accordance with the Articles of Association of the Company and the provisions of the Companies Act,1956, Mr. Mukarram Bhagat, retires by rotation at the ensuing Annual General Meeting and being eligible offer himself for reappointment.
Auditors
Messrs S.B.Billimoria & Co., Chartered Accountants, will retire as Auditors at the ensuing Annual General Meeting and are eligible for reappointment. Directors Responsibility Statement as required under the provisions contained in Section 217(2AA) of the Companies Act,1956. Your Directors hereby confirm that : (i) (ii) in the preparation of the annual accounts, the applicable accounting standards have been followed. The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irrregulaties. The Directors have prepared the annual accounts on a going concern basis.
(iii)
(iv)
Acknowledgements
The Board of Directors wish to place on record their sincere appreciation of the valuable services rendered by the employees to the Company and support and co-operation received from the management of CRISIL. On behalf of the Board of Directors. R. Ravimohan Director Mukarram Bhagat Director
Seema Sarda Assistant Company Secretary
99
Crisil.Com Limited
AUDITORS REPORT
TO THE MEMBERS OF CRISIL.COM LIMITED 1. We have audited the attached Balance Sheet of CRISIL.COM LIMITED as at March 31, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to in paragraph 3 above : (a) (b) (c) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account;
2.
3.
4.
(b) in our opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (c) on the basis of the written representations from the Directors, taken on record by the Board of Directors, and according to the information and explanations given to us, none of the Directors is disqualified as on March 31, 2002 from being appointed as a Director under Section 274 (1)(g) of the Companies Act, 1956.
(d) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2002; and (ii) in the case of the Profit and Loss Account, of the loss of the Company for the year ended on that date. For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, 26 April, 2002
100

(Referred to in paragraph 3 of our report of even date) 1. The Company has maintained proper records showing full particulars including quantitative details and location of fixed assets. The fixed assets were physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. No discrepancies were noticed on such verification. The fixed assets of the Company have not been revalued during the year. The Company has neither accepted from nor granted any loan to companies, firms or parties listed in the register maintained under Section 301 of the Companies Act, 1956 or companies under the same management within the meaning of Section 370(1B) of the Companies Act, 1956. The parties to whom loans or advances in the nature of loans have been given by the Company are repaying the principal amounts wherever stipulated and are regular in paying interest where applicable. The internal control procedures of the Company relating to the purchase of fixed assets and invoicing of services are commensurate with the size of the Company and the nature of its business. There were no transactions of services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956. The Company has not accepted any deposits from the public. In our opinion the internal audit function carried out during the year by a firm of chartered accountants appointed by the management were commensurate with the size of the Company and the nature of its business. Except for the fact that the Company has obtained registration under the Employees Provident Fund Act, 1952 during the year, the Company has been regular in depositing Provident Fund dues with the appropriate authorities. We are informed that the provisions of the Employees State Insurance Scheme are not applicable to the Company. There were no undisputed amounts payable in respect of income-tax, wealth tax, sales tax, customs duty and excise duty outstanding as at March 31, 2002 for a period of more than six months from the date they became payable. According to the information and explanations given to us and the records of the Company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. The Company does not have a system of allocation of man hours utilised to relative jobs. For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, April 26, 2002 Mohammed Z. Merchant Partner
101
2. 3.
4. 5. 6. 7. 8. 9.
10.
11.
12.
Crisil.Com Limited
CRISIL.COM LTD
Schedule
Sources of Funds ShareholdersFunds Share Capital A 40,000,070 40,000,070 Application of Funds Fixed Assets Gross Block Less: Depreciation Net Block Add: Capital Work In Progress & Advances Current Assets, Loans & Advances Current Liabilities & Provisions Profit & Loss A/c debit balance C D B 15,941,112 2,662,116 13,278,996 -10,711,321 (8,555,368) 2,155,953 24,565,121 40,000,070 Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26, 2002 I For and on behalf of the Board R. Ravimohan Hemant Joshi Mukarram Bhagat Seema Sarda Mumbai : April 26, 2002 Director Director Director Asst. Company Secretary 13,278,996 930,000 57,952 872,048 3,003,312 12,803,956 (2,340,200) 10,463,756 8,160,957 22,500,073 3,875,360 22,500,073 22,500,073
102
CRISIL.COM LTD
Income
Income from Operations Other interest ( TDS Rs. 49,780, Previous year 5,497) Schedule E Current Year Rupees 20,620,564 260,862 20,881,426 Previous Year Rupees 9,146,250 24,320 9,170,570 6,631,042 2,264,751 8,377,782 17,273,575 (8,103,005) 57,952 (8,160,957) -(8,160,957) -(8,160,957) (8,160,957) (8,160,957)
Expenditure
Staff Expenses Establishment Expenses Other Expenses F G H 20,431,524 8,696,524 5,553,378 34,681,426 Profit/ (Loss) before Depreciation & Tax Less: Depreciation Profit/ (Loss) before Tax Less: Provision for Taxation Profit/ (Loss) after Tax Add : Loss brought forward from previous years (13,800,000) 2,604,164 (16,404,164) -(16,404,164) (8,160,957) (24,565,121) Balance carried to Balance Sheet (24,565,121) (24,565,121) Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26, 2002 I For and on behalf of the Board R. Ravimohan Hemant Joshi Mukarram Bhagat Seema Sarda Mumbai : April 26, 2002 Director Director Director Asst. Company Secretary
103
Crisil.Com Limited

As at March 31, 2002 Rupees As at March 31, 2001 Rupees
Schedule A
Share Capital Authorised: 60,000,000 Equity Shares of Re. 1 each Issued, Subscribed & Paid up: 4,00,00,070 shares of Re. 1 each, fully paid up ( 4,00,00,000 shares are held by The Credit Rating Information Services of India Ltd. - The Holding company) (Previous year 2,99,99,990 equity shares of Rs. 1 each, Rs.0.75 paid up and 80 equity shares of Rs.1 each fully paid up)
60,000,000 40,000,070
60,000,000 22,500,073
Schedule B
Gross Block at Cost Fixed Assets Computers Furniture & Fixture Office Equipments Vehicles Total Previous Year As on 1/04/2001 Rs 930,000 ---Additions Rs 6,489,410 4,507,522 3,614,180 400,000 Deductions Rs ------As on 31/03/2002 Rs 7,419,410 4,507,522 3,614,180 400,000 15,941,112 930,000 Upto 1/04/2001 Rs ---57,952 -Depreciation Net Block As on 31/03/2001 Rs 872,048 ---872,048 -For the On Assets Total Depreciation As on year Sold upto 31/03/2002 31/03/2002 Rs Rs Rs Rs ------1,488,097 744,192 340,737 89,090 5,931,313 3,763,330 3,273,443 310,910 744,192 340,737 89,090 2,604,164 57,952
57,952 1,430,145
930,000 15,011,112 -930,000
2,662,116 13,278,996 57,952 872,048
Schedule C
Current Assets, Loans and Advances A. Current Assets Cash on Hand Bank Balances with Scheduled Banks On Current Accounts On Fixed Deposits Accounts Other Interest Accrued Sundry Debtors (Unsecured - Considered Good) Other Debtors (A)
104
As at March 31, 2002 Rupees
8,980 60,320 --1,571,576 1,640,876
3,030 7,290,932 1,042,874 18,823 -8,355,659
As at March 31, 2002
Schedule C (Cont.)
B. Loans and Advances Advances recoverable in cash or kind or for value to be received (Unsecured - Considered Good) Sundry Deposits Advance Taxes paid and TDS (B) TOTAL (A+B)
Rupees
457,895
--
7,158,161 1,454,389 9,070,445 10,711,321
3,923,000 525,297 4,448,297 12,803,956
Schedule D
Current Liabilities and Provisions A. Current Liabilities Sundry Creditors Advances received from clients Other Liabilities (A) B. Provisions Provision for Leave encashement (B) TOTAL (A+B) Schedule E Income from Operation Web Services Income Fund Services Income Real Time Services Income 6,492,714 5,127,850 9,000,000 20,620,564 9,000,000 146,250 -9,146,250 430,000 8,555,368 Current Year Rupees -2,340,200 Previous Year Rupees 2,076,785 6,048,583 -8,125,368 1,721,169 438,750 180,281 2,340,200
105
Crisil.Com Limited
Schedule F
Staff Expenses Salaries & Bonus Other Staff expenses Leave Travel Allowance Gratuity Provident Fund Contribution Medical Reimbursement Staff Welfare Expenses 17,877,052 328,943 310,589 283,803 694,400 416,309 520,428 20,431,524 6,432,381 155,183 ----43,478 6,631,042
Current Year Rupees
Previous Year Rupees
Schedule G
Establishment Expenses Repairs & Maintenance - Buildings - Others - Equipment Electricity Postage and Mailing Expenses Telephone Expenses Rent (Net of Recoveries Rs. 4,87,500) Insurance Charges Rates & Taxes 26,787 436,596 328,237 802,694 35,271 1,642,539 5,178,793 245,607 -8,696,524 38,593 57,610 13,821 325,724 23,131 448,472 1,352,000 -5,400 2,264,751
Schedule H
Other Expenses Printing & Stationery Conveyance Travelling Books & Periodicals Business Promotion & Advertisement Professional Fees Software Purchase & Maintenance Expenses Auditors Remuneration (Refer note 6, Schedule I) Miscellaneous Expenses (Net of Recoveries Rs. 1,42,666) Bad Debts written off Vehicle Expenses 387,771 317,967 337,213 284,345 92,782 3,580,803 24,000 54,600 186,599 48,500 238,798 5,553,378
106
173,113 33,581 98,541 8,423 996,505 6,392,369 72,442 10,500 592,308 --8,377,782

1.1
Accounting Policies
1.2
Fixed Assets and Depreciation All fixed assets are stated at cost which comprises of purchase price, duties and any directly attributable cost of bringing the asset to its working condition for intended use. Depreciation on the assets has been provided on written down value at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.
1.3
Revenue Recognition Income from Operations Income from Operations comprises of income from professional services rendered which are accounted on accrual basis. Other Income Interest income is recognised on accrual basis.
1.4
Retirement Benefits The Company provides retirement benefits in the form of Provident Fund and Gratuity. Contribution to the Provident Fund is made at prescribed rates to the Provident Fund Commissioner and absorbed in the Profit and Loss Account. The Company has taken a Group Gratuity Insurance Policy with LIC of India to secure gratuity liability. The Company accounts for gratuity liability equivalent to the premium amount payable to LIC of India every year based on a percentage of annual salary specified by LIC of India.Provision for leave encashment liability is made on actuarial basis.
2. 3.
The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. Estimated amount of contracts remaining to be executed on capital account and not provided for aggregate Rs. 3,15,356 (Previous year Rs.23,09,848)
4.
The Company is in the process of changing its name from Crisil.com Ltd. to CRIS Risk and Information Services Ltd., for which appproval is awaited from the Registrar of Companies.
107
Crisil.Com Limited
5. Related Party Disclosure : Name The Credit Rating Information Services of India Ltd. Relationship Holding Company Nature of Transaction Professional fees Received Equity Share Capital Deposit paid on our behalf now paid back 6. Auditors Remuneration includes : Audit fees [includes service tax Rs.2000. Previous year - Rs 500] Tax Matters (includes service tax Rs.600) 2001-02 42,000 12,600 54,600 7. 8. Amount (Rs.) 5,400,000 40,000,000 1,200,000
2000-01 10,500 -10,500
Previous periods figures are not comparable with the current year as Company was in operation for only eight months in the previous period. Previous periodss figures have been regrouped where necessary to conform to this years classification. For and on behalf of the Board R. Ravimohan Hemant Joshi Mukarram Bhagat Seema Sarda Mumbai : April 26, 2002 Director Director Director Asst. Company Secretary
Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26, 2002`
108

Registration No. Balance Sheet Date 3 1 1 1 . 0 1 3 2 8 . 1 0 0 8 2 State Code 1 1 2 0
II.

Public Issue Bonus Issue N N i i l l Rights Issue Private Placement N 1 0 0 i 0 l 0

Total Liabilities 4 0 4 0 0 0 N 1 3 2 2 4 2 0 ( 1 6 4 2 1 5 8 0 N 0 0 i 7 5 6 8 4 i 0 0 l 9 6 5 1 ) l Total Expenditure Profit/(Loss) After Tax Dividend Rate % ( 3 1 6 4 4 6 0 N 8 4 i 1 ) l Total Assets Reserves & Surplus Unsecured Loans Investments Miscellaneous Expenditure 4 0 0 N N N N 0 i i i i 0 l l l l
Source of Funds
IV.

V.
Production Description Web Services Fund Services Real Time Services N N N o o o t t t Item Code No. A A A p p p p p p l l l i i i c c c a a a b b b l l l e e e
Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26, 2002
For and on behalf of the Board R. Ravimohan Hemant Joshi Mukarram Bhagat Seema Sarda Mumbai : April 26, 2002 Director Director Director Asst. Company Secretary
109
110
Crisil Properties Limited

13th Annual Report and Accounts 2001-2002
Board of Directors
R. Ravimohan Hemant Y. Joshi G. S. R. K. Rao
Auditors
Bankers
ICICI Bank Ltd.
Registered Office
CRISIL House 121-122, Andheri Kurla Road, Andheri (East), Mumbai - 400 093.
111
DIRECTORS REPORT
To the Members, Your Directors present the Thirteenth Annual Report of the Company with the Audited Accounts for the year ended March 31, 2002.
Performance
A summary of your Companys financial performance is given below : Year ended March 31,2002 Rs. lacs Total Income for the year was Profit before depreciation and taxes was Deducting therefrom depreciation of Profit before tax was Deducting therefrom taxes of Profit after tax was 16.69 21.03 Year ended March 31,2001 Rs. lacs
Dividend
Your Directors do not recommend payment of dividend for the year ended March 31, 2002.

Personnel
The Company did not have any employees on its roll.
Directors
Mr. G.S.R.K. Rao retires by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.
Auditors
M/s. S. B. Billimoria & Co., were appointed as Statutory Auditors of the Company for auditing the accounts for the year ending March 31, 2002 and hold office till the conclusion of the thirteenth annual general meeting of the Company and are eligible for re-appointment.
112
Directors Responsibility Statement as required under the provisions contained in Section 217(2AA) of the Companies Act, 1956 :
Your Directors hereby confirm that : (i) (ii) in preparation of the annual accounts, the applicable accounting standards have been followed. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. the Directors have prepared the annual accounts on a going concern basis.
(iii)
(iv)
Acknowledgements
Your Directors wish to place on record their sincere appreciation of the support and co-operation received from the management of CRISIL. On behalf of the Board of Directors R. Ravimohan Director Hemant Joshi Director
113
AUDITORS REPORT
TO THE MEMBERS OF CRISIL PROPERTIES LIMITED 1. We have audited the attached Balance Sheet of CRISIL PROPERTIES LIMITED as at March 31, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to in paragraph 3 above : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
2.
3.
4.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (e) on the basis of the written representations from the Directors , taken on record by the Board of Directors, and according to the information and explanations given to us, none of the Directors is disqualified as on March 31, 2002 from being appointed as a Director under Section 274 (1)(g) of the Companies Act, 1956. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2002; and (ii) in the case of the Profit and Loss Account, of the income and expenditure of the Company for the year ended on that date. For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, April 26, 2002
114
(f)

(Referred to in paragraph 3 of our report of even date) 1. The Company has maintained proper records showing full particulars including quantitative details and location of fixed assets. The fixed assets were physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. No discrepancies were noticed on such verification. The fixed assets of the Company have not been revalued during the year. The Company has neither accepted from nor granted any loan to companies, firms or parties listed in the register maintained under Section 301 of the Companies Act, 1956 or companies under the same management within the meaning of Section 370(1B) of the Companies Act, 1956. The internal control procedures of the Company relating to invoicing of services are commensurate with the size of the Company and the nature of its business. There were no transactions of services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956. The Company has not accepted any deposits from the public. The Company is not required to have an internal audit system. The provisions of the Employees Provident Fund Act, 1952 and The Employees State Insurance Act, 1948 do not apply to the Company. There were no undisputed amounts payable in respect of income-tax, wealth tax, sales tax, custom duty and excise duty outstanding as at March 31, 2002 for a period of more than six months from the date they became payable. According to the information and explanations given to us and the records of the Company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. The Company does not have a system of allocation of man hours utilised to relative jobs.
2. 3.
4. 5. 6. 7. 8. 9.
10.
11.
115
CRISIL Properties Ltd.

Schedule Sources of Funds Shareholders Funds Share Capital Contribution from Shareholders Reserves and Surplus Application of Funds Fixed Assets Gross Block Less : Depreciation Net Block Current Assets, Loans & Advances Current Liabilities & Provisions Sundry Creditors Net Current Assets Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26,2002 D C B A
490,000 48,366,648 4,588 48,861,236
490,000 48,366,648 4,588 48,861,236
48,462,798 -48,462,798 408,938 (10,500) 398,438 48,861,236 H
48,462,798 -48,462,798 398,438 -398,438 48,861,236
For and on behalf of the Board R. Ravimohan Hemant Joshi G.S.R.K. Rao Mumbai : April 26,2002 Director Director Director
116
CRISIL Properties Ltd.

Schedule Current Year Rupees 1,668,607 1,668,607 Expenditure Staff Expenses Establishment Expenses Other Expenses Profit before Depreciation & Tax Less : Depreciation Profit before Tax Less : Provision for Taxation (Refer Note 5, Schedule H) Profit after Tax Add: Profit brought forward from previous years E F G -1,637,914 30,693 1,668,607 -----4,588 4,588 Balance carried to Balance Sheet Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26,2002 4,588 4,588 H For and on behalf of the Board R. Ravimohan Hemant Joshi G.S.R.K. Rao Mumbai : April 26,2002 Director Director Director 31,211 1,559,170 512,492 2,102,873 -----4,588 4,588 4,588 4,588 Previous Year Rupees 2,102,873 2,102,873
Income Maintenance Charges recovered from members
117

Schedule A
Share Capital Authorised : 105,000 Equity Shares of Rs.100 each Issued, Subscribed & Paid up : 4900 Equity Shares of Rs 100 each fully paid up As at March 31,2002 Rupees 10,500,000 490,000 As at March 31, 2001 Rupees 10,500,000 490,000
Schedule B
Reserves & Surplus Profit and Loss Account 4,588 4,588 4,588 4,588
Schedule C
Gross Block at Cost Fixed Assets Free Hold Land Buildings Total Previous Year As on 1/04/2001 Rs 3,736,100 44,726,698 48,462,798 48,462,798 Additions Rs ----Deductions Rs ---As on 31/03/2002 Rs 3,736,100 44,726,698 48,462,798 48,462,798 Upto 1/04/2001 Rs ----Depreciation For the year Rs ----Total Depreciation Upto 31/03/2002 Rs ----Net Block As on 31/03/2002 Rs 3,736,100 44,726,698 As on 31/03/2001 Rs 3,736,100 44,726,698
48,462,798 48,462,798 48,462,798 48,462,798
Schedule D
Current Assets, Loans and Advances A. Current Assets : Bank Balances with Scheduled Banks On Current Accounts (A) B. Loans and Advances Sundry Deposits (B) TOTAL (A+B)
35,261 35,261 373,677 373,677 408,938
24,761 24,761 373,677 373,677 398,438
118
Schedule E
Staff Expenses Salaries & Bonus Staff Training and Welfare Expenses ---27,766 3,445 31,211
Schedule F
Establishment Expenses Repairs and Maintenance - Buildings Electricity Communication Expenses Insurance Rates & Taxes ----1,637,914 1,637,914 69,090 13,745 973 178,096 1,297,266 1,559,170
Schedule G
Other Expenses Professional Fees Auditors Remuneration (Refer Note 7, Schedule H) Conveyance Miscelleneous expenses Printing and Stationery Registration/Filing Fees Bank Charges 13,000 13,500 --2,618 1,500 75 30,693 500,000 10,500 1,928 64 ---512,492
119

Schedule H SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS 1.
1.1
Accounting Policies
1.2
Fixed Assets Land is valued at historical cost.
In terms of the provisions of the Articles of Association of the Company, members have contributed the cost of the construction of the building and hence no depreciation has been charged on such property as it is held for use and occupation by the member. The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. Information pursuant to para 3,4,4C and 4D of schedule VI, para II are not applicable. The Company recovers maintenance charges in respect of use of property by its members and as such is a company for the mutual benefit of its members and hence is not liable to tax in respect of such contributions received from its members. Related Party Disclosure : Name The Credit Rating Information Services of India Ltd. Relationship Holding Company Nature of Transaction Maintenance charges Recovered Amount (Rs.) 1,668,607
3 4 5
7.
Auditors Remuneration includes : Audit fees [includes service tax Rs.500. Previous year Rs.500] Other matters
2001-02 10,500 3,000 13,500
2000-01 10,500 -10,500
8.
Previous years figures have been regrouped where necessary to conform to this years classification For and on behalf of the Board R. Ravimohan Hemant Joshi G.S.R.K. Rao Mumbai : April 26,2002 Director Director Director
Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26,2002
120

Registration No. Balance Sheet Date 3 1 1 1 . 0 3 5 2 . 1 5 0 6 2 State Code 1 1 2 0
II.


Total Liabilities 4 8 8 4 N 4 8 4 8 3 4 3 N 1 6 N 6 9 i 6 6 9 i 6 i 1 0 l 7 3 8 l 8 l -Item Code No. N o t A p p l i c a b l e Total Expenditure Profit/(Loss) After Tax Dividend Rate % 1 6 N 6 i 8 l -Investments Miscellaneous Expenditure N N i i l l Total Assets Reserves & Surplus Unsecured Loans N i 4 8 8 6 1 4 l
Source of Funds
Paid up Capital Secured Loans Shareholders Contribution
IV.

V.
Product Description Real Estate Development
For and on behalf of the Board R. Ravimohan Hemant Joshi G.S.R.K. Rao Mumbai : April 26,2002 Director Director Director
121
122
Global Data Services of India Limited

2nd Annual Report and Accounts 2001-2002
Board of Directors
R. Ravimohan Hemant Y. Joshi Madhu Dubhashi
Auditors
Bankers
ICICI Bank Ltd.
Registered Office
CRISIL House, 121/122, Andheri - Kurla Road, Andheri (East), Mumbai - 400 093.
123
DIRECTORS REPORT
To the Members, Your Directors present the Second Annual Report of the Company with the Audited Accounts for the year ended March 31, 2002.
Performance
A summary of your Companys financial performance is given below : Year ended March 31, 2002 (Rs. lacs) Total Income for the year was Profit before depreciation and taxes was Deducting therefrom depreciation Profit before tax was Deducting therefrom taxes of Profit after tax which has been transferred to the Balance Sheet 7.01 2.87 56.53 11.05 11.05 4.04 Period ended March 31, 2001 (Rs. lacs) 10.07 5.77 5.77 2.90
Dividend
Your Directors do not recommend payment of dividend for the year ended March 31, 2002.
Review of Operations and Outlook

The financial year 2001-02 saw several notable achievements at your Company. Primary among these was the complete overhaul of CRISIL s Data Slicing software and the population and updating of its database. Your Company now has a rich store of financial and operational information and analysis for over 500 Companies on the system. Access has been simplified through simple and customised reports, and a powerful query engine allows users complete freedom in defining and refining queries to arrive at targeted results. Usage of this software by the divisions of CRISIL has already begun. When fully utilised, the system is expected to substantially reduce the time taken in creating and formatting reports in CRISILs user divisions. During the year under review, your Company also carried out two significant projects for external clients. The first assignment was for a large multinational finance Company, which needed customised entry of data of over 200 Companies in proprietary excel formats. Your Company executed this assignment satisfactorily and within schedule. Your Company has also entered into a contract with an export factoring Company, under which your Companys analytical team is providing corporate financial information and analysis to this client, in the clients formats (partly recycling information already entered, which is linked to the clients proprietary formats). The same client is also the first licensee for the use of the Data Slicing Software. In the year to come, your Company expects to leverage its significant analytical strengths and I.T. capabilities to expand product features and provide focused, value-added solutions to internal and external clients.
124
Your Companys activities have resulted in the creation of a carefully built up database of accounting issues and treatments. Your Company believes that there exists significant potential for leveraging and packaging this knowledge as a learning solution for persons wishing to familiarise themselves with accounting and financial concepts. During the year under review, to ascertain the market potential and evolve targeted programmes, your Company conducted workshops for Management Students and Company Executives, using facilities provided by CRISIL. Going forward, your Company will explore various options for generating value from this activity.

Personnel
The staff strength as on March 31, 2002 stood at 14 as against 16 at the end of the previous year. The Company did not employ any person covered by Section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975.
Directors
Ms. Madhu Dubhashi retires by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.
Auditors
M/s. S. B. Billimoria & Co., Chartered Accountants, will retire as Auditors at the ensuing annual general meeting and are eligible for re-appointment.
Directors Responsibility Statement as required under the provisions contained in Section 217(2AA) of the Companies Act, 1956
Your Directors hereby confirm that : (i) (ii) in the preparation of the annual accounts, the applicable accounting standards have been followed. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. the Directors have prepared the annual accounts on a going concern basis.
(iii)
(iv)
Acknowledgements
Your Directors wish to place on record their sincere appreciation of the support and co-operation received from the management of CRISIL. On behalf of the Board of Directors Mumbai, April 26, 2002 R. Ravimohan Director Hemant Joshi Director
125
COMPLIANCE CERTIFICATE
Registration No. of the Company Nominal Capital : U 72900 MH 2001 PLC 130805 : Rs.1,00,00,000/-
To, The Member of GLOBAL DATA SERVICES OF INDIA LIMITED Crisil House, 121-122, Andheri Kurla Road, Mumbai - 400 093 We have examined the registers, records, books and papers of GLOBAL DATA SERVICES OF INDIA LIMITED (hereinafter referred to as the Company) as required to be maintained under the Companies Act, 1956, (hereinafter referred to as the Act) and the rules made thereunder, and also the provisions contained in the Memorandum and Articles of Association of the Company in respect of or for the financial year ended on 31st March, 2002 (hereinafter referred to as the financial year). In our opinion and to the best of our information and according to the examinations carried out by us and explanations furnished to us by the Company, its officers and agents, we certify that, in respect of the said financial year, 1. Except the following Registers, which either were not required to be maintained by the Company or where there were no entries required to be made therein, the Company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made thereunder and all entries therein have been duly recorded. Statutory Registers 1. 2. 3. 4. Register of investment not held in Companys Name under section 49 of the Act. Register of public deposits under section 58A of the Act. Register of charges under section 143 of the Act. Register of loans and investments made, guarantee given or security provided under section 372A of the Act. Register of sealed documents. Register of Dividend/interest. Register of Proxies. Register of transfer/transmission of shares, debentures and other securities.
Non-statutory Registers 1. 2. 3. 4. 2.
The Company has duly filed the forms and returns as stated in Annexure B to this certificate, with, as the case may be, the concerned Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act and the rules made thereunder, excepting where there occurred a delay in filing within the prescribed period, the additional fees have been paid to the concerned Registrar of Companies. The Company, being a public company, has the minimum paid-up capital, as prescribed under the Act.
3.
126
4.
The Board of Directors duly met 4 times respectively on 27th April, 2001, 3rd September, 2001, 27th December, 2001 and 27th February, 2002, in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minute Book maintained for the purpose. There were no circular resolutions passed during the financial year. The Company has not closed its Register of Members or Debenture holders during the financial year. The Annual General Meeting of the shareholders of the Company, for the financial year ended on 31st March, 2001, was held on 27th September, 2001, after giving due notice to the members of the Company and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose. No Extra-ordinary General Meeting of the shareholders of the Company was held during the financial year. The Company has not advanced any loan to its Directors or persons or firms or Companies referred to under section 295 of the Act. The Company has not entered into any contracts falling within the purview of Section 297 of the Act, as per the explanations provided by the officers of the Company. The Company was not required to make any entries in the register maintained under Section 301 of the Act, since there was no contract, falling within the purview of Section 297 of the Act, entered into, during the financial year. As there were no instances falling within the purview of Section 314 of the Act, the Company has not obtained any approval from the Board of Directors, Members or Central Government, as the case may be. The Company has not issued any duplicate certificates during the financial year. The Company has: (i) not delivered the certificates on allotment of securities and on lodgement thereof for transfer/transmission or any other purpose in accordance with the provisions of the Act, since there were no allotment, transfer or transmission of shares in or debentures of the Company, during the financial year.
5. 6.
7. 8. 9. 10.
11. 12. 13.
(ii) not deposited any amount in a separate bank account as no dividend was declared during the financial year. (iii) not posted warrants or cheques to the members of the Company as no dividend was declared during the financial year. (iv) not transferred any amount to Investor Education and Protection Fund, since there was no amount, on account of unpaid dividend account, application money due for refund, matured deposits, matured debentures and the interest accrued thereon, lying with the Company, and which was required to be transferred to the said Fund. (v) 14. duly complied with the requirements of section 217 of the Act. The Board of Directors of the Company is duly constituted. There was no appointment of additional Directors, alternate Directors and Directors to fill casual vacancy during the financial year. However, the First Directors of the Company, as appointed under the Articles of Association of the Company, and being therefore liable to retire in the First Annual General Meeting, have duly been re-appointed as the Directors of the Company, at First Annual General Meeting duly held on 27th September, 2001. The Company has not appointed any Managing Director/Whole-time Director during the financial year.
127
15.

16. 17. The Company has not appointed any sole-selling agent during the financial year. As per the explanations provided by the officers of the Company, the Company was not required to obtain, during the financial year, any approvals of Central Government, Company Law Board, Regional Director, Registrar of Companies and/or such other authorities as prescribed under various provisions of the Act. The Directors have, wherever applicable, disclosed, pursuant to the provisions of the Act and the rules made thereunder, their interests in other firms, Companies or otherwise, to the Board of Directors. The Company has not issued any shares, debentures or other securities, during the financial year. The Company has not bought back any shares during the financial year. There was no redemption of preference shares or debentures during the financial year. There were no transactions, during the financial year, necessitating the Company to keep in abeyance the rights to dividend, rights shares and bonus shares pending registration of transfer of shares. The Company has not accepted or renewed any deposits, including any unsecured loans, falling within the purview of Section 58A, during the financial year. The Company has not made any borrowings during the financial year ended 31st March, 2002. The Company has not made any loans or advances or given guarantees or provided securities to other bodies corporate, and consequently, no entries have been made in the register kept for the purpose. The Company has not altered the provisions of its Memorandum of Association, with respect to situation of the Registered Office of the Company from one state to another, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to the objects of the Company, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to name of the Company, during the financial year. The Company has not altered the provisions of its Memorandum of Association, with respect to share capital of the Company, during the financial year. The Company has not altered, during the financial year, its Articles of Association. As per the explanations given by the officers of the Company, during the financial year, there was no prosecution initiated against or show cause notice received by the Company and no fines and penalties or any other punishment was imposed on the Company, for committing offences under the Act. The Company has not received, during the financial year, any money as security from any of its employees, as per the explanations provided by the officers of the Company. As per the explanations given by the management of the Company, the Company has deposited both employees and employers contribution to Provident Fund with prescribed authorities pursuant to Section 418 of the Act. For M. G. KALELKAR & ASSOCIATES Place : Mumbai Date : 26-04-2002
128
18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
32. 33.
MILIND G. KALELKAR Proprietor FCS - 3854, CP - 1877
Annexure - I REGISTERS AS MAINTAINED BY THE COMPANY

STATUTORY REGISTERS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Register of members and debentureholders, with their index, if applicable, under sections 150 and 152 of the Act. Minutes Books for minutes of meeting of the Board, Committees and Shareholders under section 193 of the Act. Books of Account under section 209 of the Act. Register of contracts in which Directors are interested under section 301 of the Act. Register of Directors, Managing/Wholetime Directors, Manager and Secretary under section 303 of the Act. Register of Directors Shareholdings under section 307 of the Act. Register of Directors attendance at meeting of the Board as per Regulation 71 of Table A. Register of shareholders attendance at their meeting under section 174 of the Act. Register of Certificates and Register of Renewed and Duplicate Certificate. (Rule 4 of the Companies [Issue of Share Certificates] Rules, 1960). Register of Fixed Assets.
NON-STATUTORY REGISTERS
1. Register of application and allotment of securities.
Annexure - II
Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government, or other authorities during the financial year ended 31st March, 2002. Sr. No. Form / Return No. Filed under Section(s) For the matter(s) Date of filing Whether filed within prescribed time [Yes/No] No Yes If delay in filing, whether requisite additional fee paid [Yes/No] Yes N. A.
1. 2.
Form No. 22 Schedule V Part II made upto 27-09-2001 Balance Sheet as at 31st March, 2001 Certificate of Compliance Form No. 32
165 159
Statutory Report Annual Return
12-09-2001 18-10-2001
3. 4.
220 Proviso to section 383A 303(2)
Annual Accounts Financial year ended 31st March, 2001 Appointment of the Directors of the Company
18-10-2001 18-10-2001
Yes Yes
N. A. N. A.
5.
25-10-2001
Yes
N. A.
129
AUDITORS REPORT
TO THE MEMBERS OF GLOBAL DATA SERVICES OF INDIA LIMITED 1. We have audited the attached Balance Sheet of GLOBAL DATA SERVICES OF INDIA LIMITED as at March 31, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to in paragraph 3 above : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
2.
3.
4.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (e) on the basis of the written representations from the Directors, taken on record by the Board of Directors, and according to the information and explanations given to us, none of the Directors is disqualified as on March 31, 2002 from being appointed as a Director under Section 274 (1)(g) of the Companies Act, 1956. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2002; and in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date. For S. B. BILLIMORIA & CO. Chartered Accountants Mumbai, April 26, 2002
130
(f)

(Referred to in paragraph 3 of our report of even date) 1. The Company has neither accepted from nor granted any loan to Companies, firms or parties listed in the register maintained under Section 301 of the Companies Act, 1956 or Companies under the same management within the meaning of Section 370(1B) of the Companies Act, 1956. The internal control procedures of the Company relating to invoicing of services are commensurate with the size of the Company and the nature of its business. There were no transactions of services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act,1956. The Company has not accepted any deposits from the public. In our opinion the internal audit function carried out during the year by a firm of chartered accountants appointed by the management were commensurate with the size of the Company and the nature of its business. Except for the fact that the Company has obtained registration under the Employees Provident Fund Act, 1952 during the year, the Company has been regular in depositing Provident Fund dues with the appropriate authorities. We are informed that the provisions of the Employees State Insurance Scheme are not applicable to the Company. There were no undisputed amounts payable in respect of income-tax, wealth tax, sales tax, custom duty and excise duty outstanding as at March 31, 2002 for a period of more than six months from the date they became payable. According to the information and explanations given to us and the records of the Company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. The Company does not have a system of allocation of man hours utilised to relative jobs.
2. 3. 4. 5. 6.
7.
8.
9.
131
Global Data Services of India Ltd.

As at March 31,2002 Rupees As at March 31,2001 Rupees
Schedule Sources of Funds Shareholders Funds Share Capital Reserves & Surplus A B
2,500,000 987,728 3,487,728
2,500,00 286,674 2,786,674
Application of Funds Current Assets, Loans & Advances Current Liabilities & Provisions C D 3,960,463 (472,735) 3,487,728 Significant Accounting Policies and Notes to the Accounts I 3,082,243 (295,569) 2,786,674
For and on behalf of the Board R. Ravimohan Hemant Joshi Madhu Dubhashi Mumbai : April 26, 2002 Director Director Director
132

Schedule Income Income from Operations Other Interest received ( TDS Rs.50,549, Previous year - Rs. Nil) Expenditure Staff Expenses Establishment Expenses Other Expenses Profit before Tax Less : Provision for Taxation Profit after Tax Add: Profit brought forward from previous year Appropriations Balance carried to Balance Sheet 987,728 987,728 Significant Accounting Policies and Notes to the Accounts Per our Report attached For S. B. Billimoria & Co. Chartered Accountants Mohammed Z. Merchant Partner Mumbai : April 26,2002 I For and on behalf of the Board R. Ravimohan Hemant Joshi Madhu Dubhashi Mumbai : April 26, 2002 Director Director Director 286,674 286,674 F G H 1,393,515 867,683 2,234,282 4,495,480 1,105,054 404,000 701,054 286,674 987,728 218,593 -211,990 430,583 57,667 290,000 286,674 -286,674 E 5,352,750 247,784 5,600,534 1,000,000 7,257 1,007,257 Current Year Rupees Previous Year Rupees
133

Schedule A
Share Capital Authorised : 10,00,000 equity shares of Rs.10 each As at March 31, 2002 Rupees 10,000,000 10,000,000 Issued, Subscribed & Paid up : 250,000 Equity Shares of Rs.10 each fully paid up (2,49,993 shares are held by The Credit Rating Information Services of India Ltd. - The Holding Company) 2,500,000 As at March 31,2001 Rupees 10,000,000 10,000,000 2,500,000
Schedule B
Reserves & Surplus Profit and Loss Account 987,728 987,728 286,674 286,674
Schedule C
Current Assets, Loans and Advances A. Current Assets : Cash on Hand Bank Balances with Scheduled Banks On Current Accounts On Bank Deposits Sundry Debtors ( Unsecured - Considered good ) Debtors - over six months Other Debtors Other Interest Accrued (A) B. Loans and Advances Advances Recoverable in cash or kind or value to be received (Unsecured - considered Good) Advance Taxes paid and TDS ( Net of Provision for Tax) (B) TOTAL (A+B)
134
644 1,379,401 2,334,905 -63,750 15,353 3,794,053 20,000 146,410 166,410 3,960,463
-874,986 2,200,000 --7,257 3,082,243 ---3,082,243
Schedule D
Current Liabilities and Provisions A. Current Liabilities : Sundry Creditors Other Liabilities Fees received in advance (A)
160,735 -12,500 173,235
10,500 51,569 -62,069
B. Provisions : Provision for Tax ( Net of Advance tax & TDS) Provision for leave encashment Provision for Gratuity (B) TOTAL (A+B) 233,500 32,000 34,000 299,500 472,735 Current Year 233,500 --233,500 295,569 Previous Year Rupees 1,000,000 ---1,000,000
Schedule E
Income from Operation Professional Fees received Training Income Data income Data slicing income
Rupees 4,800,000 395,000 106,500 51,250 5,352,750
Schedule F
Staff Expenses Salaries Contribution to Provident Fund & Gratuity Other Staff Expenses Staff Welfare Expenses 1,092,526 125,328 46,355 129,306 1,393,515 195,286 23,307 --218,593
135

Current Year Rupees Pervious Year Rupees
Schedule G
Establishment Expenses Repairs and Maintenance - Building - Equipment - Others Electricity Charges Postage and Mailing expenses Telephone expenses Rent Rates and Taxes
120,405 7,250 101,008 317,672 40,810 239,788 39,850 900 867,683
----------
Schedule H
Other Expenses Audit Fees ( Refer Note 3, Schedule I ) Other expenses Registration and Filing fees Conveyance Travelling Books and Periodicals Advertising Expenses Business Promotion Expenses Printing and Stationery Professional Fees 44,100 3,575 8,830 20,261 139,030 84,010 161,613 521 111,984 1,660,358 2,234,282 10,500 -181,490 -----6,000 14,000 211,990
136

1.1
Accounting Policies
1.2
Revenue Recognition Income from Operations Income from Operations comprises of income from professional services rendered in the area of training and data compilation and provision, which are accounted on accrual basis. Other Income Interest income is recognised on accrual basis.
1.3
Retirement Benefits The Company provides retirement benefits in the form of Provident Fund. Contribution to the Provident Fund is made at prescribed rates to the Regional Provident Fund Commissioner and absorbed in the Profit and Loss Account. Provision for leave encashment liability is made on acturial basis. The Company is not liable to make provision for Gratuity, however, provision for Gratuity is made on actual basis.
2.
Related Party Disclosure : Name The Credit Rating Information Services of India Ltd. Relationship Holding Company Equity Share Capital Income collected on our behalf and transferred back Expenses incurred and paid - Staff Expense - Establishment expenses - Other expenses 1,434,991 451,461 1,089,268 2,499,930 377,245 Nature of Transaction Professional fees Received Amount (Rs.) 4,800,000
137
3.
Auditors Remuneration includes : Audit fees (includes service tax Rs.1250. Previous year - Rs. 500) Tax Matters (includes service tax Rs.600 of which Rs.300 pertains to the Previous Year, Previous year - Nil) Other matters (includes service tax Rs.250. Previous year Rs.Nil )
2001-02 26,250 12,600 5,250 44,100
2000-01 10,500 --10,500
4. 5. 6.
The Company has no amounts due to small scale undertakings exceeding Rs. 100,000. Previous periods figures are not comparable with the current year as Company was in operation for only two months in the previous period. Previous periods figures have been regrouped where necessary to conform to this years classification. For and on behalf of the Board R. Ravimohan Hemant Joshi Madhu Dubhashi Mumbai : April 26, 2002 Director Director Director
138

Registration No. P L 1 C . 0 1 3 3 0 . 8 0 0 5 2 State Code 1 1 Balance Sheet Date 3 2 0
II.


Total Liabilities 3 2 4 5 N N 3 4 N 5 1 2 6 1 . 8 0 i i 8 i 0 0 8 8 0 l l 8 l 0 5 0 Total Expenditure Profit/(Loss) After Tax Dividend Rate % 4 4 7 N 9 0 i 5 1 l Total Assets Reserves & Surplus Unsecured Loans Investments Miscellaneous Expenditure 3 4 9 N N N 8 8 i i i 8 8 l l l
Source of Funds
IV.

V.
Production Description Data Compiling N o t Item Code No. A p p l i c a b l e
For and on behalf of the Board R. Ravimohan Hemant Joshi Madhu Dubhashi Mumbai : April 26, 2002 Director Director Director
139
NOTICE
NOTICE is hereby given that the Fifteenth Annual General Meeting of the members of The Credit Rating Information Services of India Limited will be held on Friday, August 2, 2002 at 3.30 p.m. at Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021 to transact the following business: RESOLVED THAT Mr. Edward Emmer, who was appointed as an additional Director at the meeting of the Board of Directors of the Company held on October 24, 2001 pursuant to Section 260 of the Companies Act, 1956 and who holds office upto the date of this Annual General Meeting, be and is hereby appointed as a Director of the Company, liable to retire by rotation. 8. To consider, and if thought fit, to pass the following resolution, with or without modification, as an Ordinary Resolution:
Ordinary Business
1. To receive, consider and approve the audited Profit & Loss Account of the Company for the year ended March 31,2002 and the audited Balance Sheet as on that date, together with the Report of the Directors and the Auditors thereon. To declare dividend. To appoint a Director in place of Mr. B.V. Bhargava, who retires by rotation and being eligible, offers himself for re-appointment. To appoint a Director in place of Dr. Bala V. Balachandran, who retires by rotation and being eligible, offers himself for re-appointment. To appoint a Director in place of Ms. Rama Bijapurkar, who retires by rotation and being eligible, offers herself for re-appointment. To consider and if thought fit, to pass, with or without modification, the following resolution, as a Special Resolution pursuant to Section 224-A of the Companies Act,1956:
2. 3.
RESOLVED THAT pursuant to the provisions of Section 198,269,310,311, Schedule XIII and any other applicable provisions, if any, of the Companies Act, 1956, and subject to such approvals as may be required, the Company hereby approves the re-appointment of Mr. R. Ravimohan, as Managing Director, for a further period of five years with effect from October 1, 2002 on the following terms and conditions: (1) Mr. R. Ravimohan, Managing Director, shall be entitled to receive a minimum salary of Rs. 50,000 per month subject to a maximum of Rs. 3,00,000 per month as may be decided by the Compensation Committee of Directors. (2) Managing Director, shall be entitled, in each year, effective financial year 2002-2003, to a commission not exceeding 3% of the net profits of the Company calculated in accordance with the provisions of Sections 349 and 350 of the Companies Act,1956, as may be decided by the Compensation Committee of Directors during the aforesaid period. (3) Managing Director, shall be entitled to perquisites (evaluated as per Income Tax Rules, wherever applicable, and at actual cost to the Company in other cases) such as furnished accommodation (without any deduction from salary in respect thereof), House Rent Allowance not exceeding 60% of salary as may be decided by the Compensation Committee of the Directors (in case no accommodation is provided by the Company), provision of gas, electricity, furnishings,
4.
5.
6.
RESOLVED THAT Messrs S.B. Billimoria & Co., Chartered Accountants, be and are hereby re-appointed Auditors of the Company to hold office from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting on such remuneration as may be decided by the Board of Directors.
Special Business:
7. To consider, and if thought fit, to pass the following resolution, with or without modification, as an Ordinary Resolution:
140

reimbursement of all medical and hospitalisation expenses for self and family and leave and leave travel concession as per the rules of the Company in this behalf, fees of clubs, premium in respect of personal accident policies, contribution to provident and superannuation funds, contribution to gratuity fund, provision of car with driver and telephone at residence for use on Companys business, encashment of leave and other benefits, in accordance with the schemes and rules of the Company for its staff as applicable from time to time. (4) Where in any financial year, during the currency of tenure of the Managing Director, the Company has no profits or its profits are inadequate, the Managing Director shall be entitled to remuneration by way of salary and perquisites not exceeding the limits specified in Schedule XIII of the Companies Act, 1956. 9. To consider, and if thought fit, to pass the following resolution, with or without modification, as an Ordinary Resolution: the Company calculated in accordance with the provisions of Sections 349 and 350 of the Companies Act, 1956, as may be decided by the Compensation Committee of Directors during the aforesaid period. (3) Ms. Roopa Kudva shall be entitled to perquisites (evaluated as per Income Tax Rules, wherever applicable, and at actual cost to the Company in other cases) such as furnished accommodation (without any deduction from salary in respect thereof), House Rent Allowance not exceeding 60% of salary as may be decided by the Compensation Committee of the Directors (in case no accommodation is provided by the Company), provision of gas, electricity, furnishings, reimbursement of all medical and hospitalisation expenses for self and family and leave and leave travel concession as per the rules of the Company in this behalf, fees of clubs, premium in respect of personal accident policies, contribution to provident and superannuation funds, contribution to gratuity fund, provision of car with driver and telephone at residence for use on Companys business, encashment of leave and other benefits, in accordance with the schemes and rules of the Company for its staff as applicable from time to time. (4) Where in any financial year, during the currency of tenure of Mrs. Roopa Kudva, as Executive Director, the Company has no profits or its profits are inadequate, she shall be entitled to remuneration by way of salary and perquisites not exceeding the limits specified in Schedule XIII of the Companies Act, 1956. By Order of the Board For The Credit Rating Information Services of India Limited. Shrikant Dev Mumbai, April 26, 2002. Company Secretary
141
RESOLVED THAT subject to the provisions of Sections 198, 309, 310 and any other applicable provisions, if any, of the Companies Act, 1956 and also subject to such approvals as may be required, Ms. Roopa Kudva who pursuant to Section 260 of the Companies Act, 1956, was appointed as additional Director at the meeting of the Board of Directors of the Company held on April 26, 2002 and who holds office upto the date of this Annual General Meeting and in respect of whom the Company has received notice from a member pursuant to Section 257 of the Companies Act, 1956, proposing her appointment as Director, be and is hereby appointed as Executive Director and Chief Rating Officer of the Company for a period of five years effective April 26, 2002 on the following terms and conditions: (1) Ms. Roopa Kudva shall be entitled to receive a minimum salary of Rs. 50,000 per month subject to a maximum of Rs. 3,00,000 per month as may be decided by the Compensation Committee of Directors. (2) Ms. Roopa Kudva shall be entitled, in each year, effective financial year 2002-2003, to a commission not exceeding 3% of the net profits of
NOTES :
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER. Proxies, duly stamped and executed, must reach the Registered Office of the Company not less than 48 hours before the time of the Annual General Meeting . The Register of Members and Share Transfer Books of the Company will remain closed from July 10, 2002 to July 12, 2002.( both days inclusive). Dividend as recommended by the Board of Directors, if declared at the meeting, will be paid to those members whose names appear on the Register of Members on July 12, 2002. No tax at source will be deducted if the Dividend payable to an individual shareholder does not exceed Rs. 1,000/-. Other members who are entitled to receive dividend without deduction of tax from the Company may file a declaration in Form 15G, in duplicate, before July 10, 2002 with the Companys Registrars- Karvy Consultants Ltd.
Commission of India, the Indian Investment Centre, New York and as Chairman, ICICI Telecom Group advisory to the Government of India. His other Directorship includes Raymond Ltd., Cosmo Films Ltd., Supreme Industries Ltd., Grasim Industries Ltd., J.K.Corp Ltd., HEG Ltd., India Index Services & Products Ltd., Feedback First Urban Infrastructure Development Company Ltd. He holds membership of the Audit Committee of Raymond Limited and Cosmo Films Limited, Chairmanship of the Audit Committee of Grasim Industries Limited and J.K. Corp Ltd., Chairmanship of the Compensation Committee of The Credit Rating Information Services of India Limited and Chairmanship of the Remuneration Committee of Supreme Industries Limited. Item No. 4 Dr. Bala V. Balachandran, Director, retires by rotation and being eligible, offers himself for re-appointment. A brief resume of Dr. Bala V. Balachandran is given below : Dr. Bala V. Balachandran. Dr. Bala Balachandran is a distinguished Professor of Accounting Information Systems and Decision Sciences at J. L. Kellogg Graduate School of Management, USA. Dr Balachandran is globally acknowledged as an opinion leader in areas of Business effectiveness, Accounting Systems, Decision Science and the evolving subject of fusion of technology with matters relating to finance. The most prominent amongst his seminal work being a book titled Re-engineering Revisited published in May, 1999. He was awarded Padmashri for outstanding contribution in the field of literature and education. Dr. Bala Balachandran serves on the Board of Godrej Consumer Products Ltd. Item No. 5 Ms. Rama Bijapurkar, Director, retires by rotation and being eligible, offers herself for re-appointment. A brief resume of Ms. Rama Bijapurkar is given below :
2.
3.
4.
5.
EXPLANATORY STATEMENT UNDER SECTION 173(2) OF THE COMPANIES ACT,1956.

Item No. 3 Mr. B.V. Bhargava, Director, retires by rotation and being eligible, offers himself for re-appointment. A brief resume of Mr. B.V. Bhargava is given below : Mr. B.V. Bhargava: Mr. Bhargava is the Chairman of CRISIL and is also the Chairman of the Rating Committee. Following a career spanning nearly three decades with ICICI Ltd., Mr. Bhargava retired as Vice-Chairman and Managing Director in 1996. He has also served with the Tariff
142

Ms. Rama Bijapurkar : Ms. Rama Bijapurkar is a recognised leader on marketing strategy and consumer related issues in India and runs a strategic marketing consulting practice working across a wide range of sectors, helping organizations with their marketing strategies. Prior to that, Ms. Bijapurkar worked with McKinsey and Company as a Senior Marketing Consultant, as the Deputy Managing Director of MARG and MODE Services, which she co-founded. In addition, she is a visiting faculty at IIM Ahmedabad. She is an alumna of IIM Ahmedabad and holds an Honors degree in Physics from the Delhi University. Ms. Bijapurkar serves on the Boards of Infosys Technologies Ltd., Titan Industries Ltd. and Godrej Consumer Products Ltd. She holds membership of Audit Committee of Infosys Technologies Limited, Godrej Consumer Products Limited and Titan Industries Limited, Investors Grievance Committee of Infosys Technologies Limited and Human Resources Committee of Godrej Consumer Products Limited. Item No. 7 Mr. Edward Emmer was appointed as an additional Director of the Company by the Board of Directors at its meeting held on October 24, 2001. Pursuant to Section 260 of the Companies Act, 1956, read with Article 129 of the Articles of Association of the Company, Mr. Edward Emmer holds office upto the date of this Annual General Meeting. The Company has received Notice under Section 257 of the Companies Act, 1956 along with a deposit of Rs.500/- from a member intimating the intention to propose the candidature of Mr. Edward Emmer. The Board of Directors considers it in the interest of the Company to appoint Mr. Edward Emmer as a Director. Mr. Edward Emmer is the Executive Managing Director Corporate and Government Services Group of Standard & Poors. None of the Directors, except Mr. Edward Emmer, is interested or concerned in this resolution. Item No. 8 The Company had appointed Mr. R. Ravimohan as Managing Director at the Annual General Meeting held on July 31, 1997 for a period of five years with effect from October 1, 1997. The term of appointment expires on September 30, 2002. The Board of Directors at its meeting held on April 26, 2002 re-appointed Mr. R. Ravimohan as Managing Director for a further period of five years effective from October 1, 2002 on terms and conditions as specified in the resolution at Item No. 8 of the Notice. His re-appointment and remuneration fixed in accordance with Schedule XIII of the Companies Act, 1956, is subject to approval of members. Mr. Ravimohan has been Managing Director of CRISIL since 1994. As Chief Executive Officer of the Overthe-Counter Exchange of India(OTCEI) from 199094, he was instrumental in the setting up of Indias first electronic stock exchange. He has also served as Member on the Advisory Committee of the Securities and Exchange Board of India and the Managing Committee of the Bombay Chamber of Commerce and Industry and Assocham. He has had a long initial career with ICICI Ltd. in the areas of project appraisal, systems design, credit administration and merchant banking. Mr. R. Ravimohan serves on the Board of India Index Services & Products Ltd, Crisil Research & Information Services Ltd., Crisil.com Ltd., Crisil Properties Ltd and Global Data Services of India Ltd. He holds membership of the Investors Grievance Committee of Crisil. The Board considers that it would be in the interest of the Company to avail the experience and services of Mr. R. Ravimohan and, therefore, recommends the approval of the above. The terms of remuneration of Mr. R. Ravimohan as mentioned in Item No. 8 of the Notice may be treated as an Abstract under Section 302 of the Companies Act, 1956.
143
None of the Directors, except, Mr. R. Ravimohan is interested or concerned in this Resolution.
an Executive Director will be in the interest of the Company. The terms of remuneration of Ms. Roopa Kudva as Executive Director as mentioned in Item no. 9 of the Notice may be treated as an abstract under section 302 of the Companies Act, 1956. None of the Directors, except Ms. Roopa Kudva is interested or concerned in this resolution. All the documents referred to in this Notice and the explanatory statement will be available for inspection by the members at the Registered Office of the Company between 11.00 a.m. and 1.00 p.m. on all working days from the date hereto upto the date of the meeting. By Order of the Board For The Credit Rating Information Services of India Limited. Shrikant Dev Company Secretary
Item No. 9
Ms. Roopa Kudva was appointed as an Additional Director (designated as Executive Director and Chief Rating Officer) by the Board of Directors at its meeting held on April 26, 2002. Pursuant to Section 260 of the Companies Act, 1956, Ms. Roopa Kudva holds office upto the date of this Annual General Meeting. The Company has received notice under Section 257 of the Companies Act, 1956 along with deposit of Rs. 500/from a member intimating the intention to propose the candidature of Ms. Roopa Kudva. Ms. Roopa Kudva joined CRISIL in 1992. Prior to that, she had worked for 6 years at Industrial Development Bank of India in the Project Finance Department. She has also worked in emerging markets in the Mediterranean and Middle East countries during her secondment to Standard & Poors, Paris, as Director, Financial Institutions Ratings. She holds a graduate degree in Statistics and a Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad. Ms. Roopa Kudvas knowledge and experience have been of immense help in the growth and development of the Company. The Board considers that her appointment as
Mumbai, April 26, 2002. Registered Office : CRISIL House, 121-122, Andheri Kurla Road, Andheri (East), Mumbai-400 093.
144
The Credit Rating Information Services of India Limited

Registered Office : CRISIL HOUSE 121-122, Andheri-Kurla Road, Andheri (East), Mumbai 400 093
PROXY FORM
Regd. Folio No. ............................... No. of Shares held .........................................
I/We.............................................................................................................. of................................................................................................. being a member/ members of THE CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED hereby appoint Mr./Ms........................................................................................................................................ or failing him Mr./Ms .............................................................................................. of .................................................................................................................................. as my/our/proxy to vote for me/us on my/our behalf at the FIFTEENTH ANNUAL GENERAL MEETING of the Company to be held on Friday, August 2, 2002 at 3.30 p.m. at Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021.
Signed this ....................... day of ..........................2002.
Revenue Stamp of Signature .............................................. Re. 1/-
Note : This form, duly completed and signed, must be deposited at the Registered Office of the Company not less than 48 hours before the time of the meeting.

Registered Office : CRISIL HOUSE 121-122, Andheri-Kurla Road, Andheri (East), Mumbai 400 093
ATTENDANCE SLIP
(To be handed over at the entrance of the meeting hall)
15TH Annual General Meeting

I hereby record my presence at the FIFTEENTH ANNUAL GENERAL MEETING of the Company held on Friday, August 2, 2002 at 3.30 p.m. at Convention Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen .Jagannath Bhosale Marg, Next to Sachivalaya Gymkhana, Mumbai - 400 021 Full Name of the Member (in BLOCK LETTERS) ............................................................................................ Regd. Folio No. ................................................ No. of Shares held .....................................
Full Name of the Proxy (in BLOCK LETTERS) ........................................................................... Members/Proxys Signature............................................................................................................................

REGISTERED OFFICE
CRISIL House, Plot No. 121 /122, Andheri Kurla Road, Andheri (E), Mumbai 400 093 Tel : (022) 691 3001 09 Fax: (022) 691 3000
REGIONAL OFFICES Ahmedabad 301, Paritosh, Usmanpura, Ahmedabad 380 013 Tel : (079) 755 0317/1533 Fax: (079) 755 9863 Bangalore W-101, 1st Floor, Sunrise Chambers, 22, Ulsoor Road, Bangalore 560 042 Tel : (080) 558 0899, 559 4802 / 6708 Fax: (080) 559 4801 Hyderabad 4, Nagarjuna Hills, Punjagutta, Hyderabad 500 482 Tel : (040) 335 8103 / 8105 Fax: (040) 335 7507 Calcutta 142/1A, Satyam Apartments, Sarat Bose Road, Calcutta 700 029. Tel : (033) 475 4251 / 9933 Fax : (033) 475 4265
Chennai Thapar House 43/44 Montieth Road, Egmore, Chennai 600 008 Tel : (044) 854 6205 / 06 854 6093 / 858 6095 Fax : (044) 854 7531
New Delhi Hindustan Times Bldg., 9th Floor, 18-20, K. G. Marg, New Delhi 110 001 Tel : (011) 372 1603 / 05, 332 1086 / 73, 373 6541 / 6195 Fax : (011) 372 1605 Pune 187/17, Ghole Road, Shivajinagar, Pune 411 005 Tel : (020) 553 9064 / 67 Fax:(020) 553 9068
website : www.crisil.com

2001 2002

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2001 2002

Uploaded by

Copyright:

Available Formats

CRISILs STRATEGY AND VISION

Report 15th Annual 2001 - 2002

Annual Report of Subsidiaries of CRISIL

Senior Management Team at Crisil Rating Services

Advisory & Information Services

CRISIL - Board Of Directors

Mr. A. V. Rajwade, Director

Dr. S. A. Dave, Director

Mr. B. R. Shah, Director

Mr. M. G. Bhide, Director

Ms. Rama Bijapurkar, Director

Report 15th Annual 2001 - 2002

Dr. Bala V. Balachandran, Director

Mr. Edward Emmer, Director

Ms. Cecile Saavedra, Alternate Director to Mr. Edward Emmer

Mr. R. Ravimohan, Managing Director

Mr. Hemant Y. Joshi, Executive Director

Ms. Roopa Kudva, Executive Director and Chief Rating Officer

Report 15th Annual 2001 - 2002 Review of Operations A. Ratings Services

Corporate Sector Rating Services (CSRS)

Financial Sector Rating Services (FSRS)

Infrastructure Sector Rating Services (ISRS)

Formation of Structured Finance Rating Services (SFRS)

Rating Criteria & Product Development Centre (RCPD)

Report 15th Annual 2001 - 2002

Transparency and customer service

Productivity and process improvements

B. Crisil Advisory Services (CAS)

Report 15th Annual 2001 - 2002

C. Crisil Investment & Risk Management Services (CIRM)

D. Research and Information Services

F. Relations with Standard & Poors

Report 15th Annual 2001 - 2002 I. Facilitation

Employee Stock Option Plan (ESOP)

Report 15th Annual 2001 - 2002

Mumbai, April 26, 2002.

R. Ravimohan Rajat Dutta*

October 1, 1994 Sept. 30, 1993

Mumbai, April 26, 2002

Report 15th Annual 2001 - 2002

For S.B. BILLIMORIA & CO. Chartered Accountants

Mohammed Z. Merchant Mumbai, April 26, 2002 Partner

ANNEXURE TO THE DIRECTORS REPORT

Analysis of financial condition and results of operations

Report 15th Annual 2001 - 2002

% 27.67% 31.44% 40.89% -100.00%

As on March 31 2001 (Rs. lacs)

199.12 226.28 294.32 -719.72

Report 15th Annual 2001 - 2002

Loans & Advances :

4. Current Liabilities & Provisions :

% 96.36% 2.32% 1.32%

25.97% 113.85% 7.22% 176.88%

% 74.03% 17.92% 8.05%

% 64.51% 24.41% 11.08%

Report 15th Annual 2001 - 2002

Year ended March 31 Total Instruments No. Volume (Rs. Crore)

1997-98 573 50,357

1998-99 327 16,329

1999-2000 283 31,090

2000-01 272 53,013

2001-02 328 70,441

% 19.32% 1.19% 1.69% 22.20% 100%