CRISIL an S&P Globa.L Compii"Y
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CRISIL An S&P Globa.l ComPII"Y April 20, 2018 Listing Department National Stock Exchange o f India Lid. SSE Limited Exchange Plaza. Sth floor P J Towers Plot No. CII , G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Sandra (East), Mumbai 400 051 Dear Sirs, Sub.: Anoual Report of CRISIL Limited Kindly be informed that the 31st Annual General Meeting (AGM) of CRISIL Limited was held on Tuesday, April 17,2018 at 3.30 p.m. at Rangaswar Hall, 4th floor, Yashwantrao Chavan Pratishthan, Gen. Jagannath Shosare Marg. Next to Sachi va Jaya Gymkhana, Mumbai 400 021. Pursuant to Regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Annual Report orlhe Company for the financial year ended December 3 1, 2017. Kindly acknowledge receipt and inform your members accordingly. Yours faithfully, For CRIS IL Li mited Minai Bhosale Company Secretary ACS 12999 Enc!.: ala CRISllllmlttd Corporate Identity Number: l67120MH1987PlC042363 Realltered 0ffIc:.: CRISl l House, Central Avenue. Hiranandani Business Parlt. Powal, Mumbai - 400076. Phone: +91 2233423000 I Fall : +91 22 3342 3001 www.c:riail.c:om Contents Corporate Overview Message from the Chairman ......................................................................... 02 About CRISIL ................................................................................................................. 04 Board of Directors .................................................................................................. 06 Financial Highlights ............................................................................................... 12 CRISIL’s Businesses ............................................................................................... 14 Reports and Publications ............................................................................... 16 Franchise Highlights ............................................................................................. 20 Employee Engagement ....................................................................................... 28 Corporate Social Responsibility ................................................................ 34 CRISIL@30 ....................................................................................................................... 42 Statutory Reports Directors’ Report ...................................................................................................... 46 Management Discussion and Analysis Report .......................... 86 Auditors’ Certificate for Corporate Governance ........................ 98 Report of the Directors on Corporate Governance ................. 99 Business Responsibility Report ............................................................ 122 Financial Statements Consolidated Financial Statements ................................................... 144 Standalone Financial Statements ...................................................... 201 Notice ............................................................................................................................... 260 Proxy Form ................................................................................................................... 269 01 CRISIL Limited Message from the Chairman 02 Annual Report 2017 “CRISIL is ready to cater to tomorrow’s markets, and to serve Corporate Overview evolving customer needs “ through cutting-edge solutions In 2017, CRISIL completed 30 illustrious years sustained the progress on enhancing market of providing independent opinions, actionable share, deepening relationships, tapping newer insights and efficient solutions in tune with its client segments, and leveraging the needs of mission of making markets function better. the emerging global regulatory landscape. Also, Statutory Reports Come to think of it, CRISIL is just as young as collaboration between S&P Global and CRISIL the majority of India is today, and steadfastly strengthened and several joint franchise events committed to its mission. It’s a matter of pride for were hosted across Asia and Europe. me to be associated with this great legacy. Given the commitment to growth and In the markets we operate, the pace of change investments for future, CRISIL is ready to cater has been unprecedented. Evolving customer to tomorrow’s markets and serve evolving needs and rapid technological advances in a fast- customer needs through cutting-edge solutions. globalising world necessitate a nimble approach and discipline to excel. I take the opportunity to thank CRISIL’s Financial Statements employees for their many valuable contributions. To this end, we broke new ground on many fronts Thank you for your support, and I look forward in 2017, with initiatives that foster agility and to our exciting journey ahead. innovation. Among others, we launched Expected Loss Ratings and independent credit evaluation for stressed assets; Quantix, a cross-sector analytics tool that enables high-quality decision making; InfraInvex, a first-of-its-kind investability index for the infrastructure sector; and SMART, a John L. Berisford unique financial research platform for global banks Chairman that uses cognitive automation to enable faster decision-making. These steps offer compelling and distinctive value across facets of our work and set the platform for our future growth. Meanwhile, CRISIL continued to enhance its leadership position across businesses. It Scan to view Chairman’s video message 03 CRISIL Limited #Agile to market needs Unleashing #Innovation Defining #Global best standards Empowering decision-making with cutting-edge #Analytics Making markets function better 04 Annual Report 2017 About Corporate Overview CRISIL CRISIL is a leading agile and innovative, customers. Our businesses operate from Who global analytics company driven by its India, the US, the UK, Argentina, Poland, we are mission of making markets function better. China, Hong Kong and Singapore. We are India’s foremost provider of We are majority owned by S&P Global A leading agile and ratings, data, research, analytics and Inc., a leading provider of transparent innovative, global solutions. A strong track record of and independent ratings, benchmarks, analytics company growth, culture of innovation and global analytics and data to the capital and footprint sets us apart. We have delivered commodity markets worldwide. independent opinions, actionable insights, and efficient solutions to over 1,00,000 Statutory Reports Our clients range from micro, small and We also work with governments and policy Who medium companies to large corporates, makers in the infrastructure space in India investors, and top global financial and in other emerging markets. we serve institutions. We work with commercial and investment banks, insurance companies, Micro, small and medium private equity players and asset companies to large management companies globally. corporates, investors, and top global financial institutions Financial Statements Our analyses, insights and solutions help By helping shape public policy on How lenders, borrowers, issuers, investors, infrastructure in emerging markets, CRISIL regulators and intermediaries make sound helps catalyse economic growth and we add value decisions. We help clients manage and development in these geographies. mitigate risks, take pricing and valuation Insights, opinions and decisions, reduce time to market, generate solutions that enable more revenue and enhance returns. better financial decisions 05 CRISIL Limited Board of Directors Mr. Ewout Dr. Nachiket Mr. M. Mr. Girish Mr. Ravinder Steenbergen Mor Damodaran Paranjpe Singhania Ms. Vinita Ms. Ashu Mr. John L. Ms. Martina Bali Suyash Berisford Cheung 06 Annual Report 2017 he was a member of the High Level Cola Company and Cadbury Schweppes Mr. John L. Berisford Expert Group on Universal Healthcare, PLC in a variety of Marketing, General set up by the Planning Commission Management and Chief Executive roles Chairman of India. During 2013-14, he served in the UK, Nigeria, South Africa, Latin Mr. John Berisford is President of as the chair of the RBI Committee on America and the USA, in addition to S&P Global Ratings. He has ultimate Comprehensive Financial Services for Britannia Industries Ltd., in India. responsibility for all aspects of the Small Businesses and Low-Income Effective April 2014, Ms. Bali moved business, including commercial, Households. He has also served on from a full time operational role as analytical, control, and operations the Boards of Wipro, the Azim Premji MD & CEO of Britannia to pursue her functions. Foundation, and the Fixed Income Money Market & Derivatives Association wide-ranging interests in the corporate Corporate Overview S&P Global Ratings is regulated of India, in the past. and development sectors, through a in many of the countries in which it portfolio of roles and responsibilities. operates, and Mr. Berisford is a director Mr. M. Damodaran She is a Non-Executive Director of two of its largest legal entities, on the Global Boards of Smith & Standard & Poor’s Credit Market Director (Independent) Nephew plc, and Bunge Limited; and Services Europe Limited and Standard Chairman of GAIN (Global Alliance & Poor’s Financial Services LLC. Mr. M. Damodaran was a member for Improved Nutrition), a Swiss Foundation based in Geneva. She Previously, Mr. Berisford served as of the Indian Administrative Service, since 1971, and had held a number of also served