CRISIL Ltd. — Audit Report / Information 2019

Feb 26, 2020

CRISIL

An 3&P 3lobal Company

February 26, 2020

Listing Department National Stock Exchange of India Ltd. Exchange Plaza, 5th floor Plot No. C/1, G Block Bandra-Kurla Complex Bandra (East) Mumbai 400 051

Dear Sirs,

Sub.: Reply to the clarification sort by the Exchange

Pursuant to the clarification sort by the Exchange on the quick result submitted to the Exchange <lat:::d February 11, 2020, please find enclosed the Independent Auditor's Report on the audited Financial lesuJs for the year ended December 31, 2019 along with the UDIN.

Kindly take the same on record.

Yours faithfully, For CRISIL Limited ' (Jl\� Minal Bhosale Company Secretary ACS 12999

CRISIL Limited

Corporate Identity Number: L67120MH1987PLC042363

Registered Office: CRISIL House, Central Avenue, Hiranandan·i Business Park, Powai, Mumbai - 400076. Phone: +91 22 3342 3000 I Fax: +91 �2 3342 3001 www.crlsll.com

Walker Chandiok &.Co LLP

Walker Chsndlc 'I & Co LLP 16th Floor, -owe- II, lndiabulls Friance Centre, SB Marg, 1:J>hlnslone (W) Mumbai - 410 013 India

T +91 22 6e26 �99 F +91 22 6E26 2=01

Independent Auditor's Report on Standalone Annual Financial Results of the Company Pursuan: to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015 (as amended)

To the Board of Directors of CRISIL Limited

Opinion

1. We have audited the accompanying standalone annual financial results ('the Statement') of CRISIL Limited ('the Company') for the year ended 31 December 2019, attached herewith, being submittec by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations anc Disclosure Requirements) Regulations, 2015 (as amended) ('the Listing Regulations'), includin!; relevant circulars issued by the SEBI from time to time.

2. In our opinion and to the best of our information and according to the explanations given to us, the Statement:

3. (i) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 (hereinafter referred to al: 'the SEBI Circular'); and

4. (ii) gives a true and fair view in conformity with the applicable Indian Accounting Standards ('Inc AS') prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with relevan­ rules issued thereunder, and other accounting principles generally accepted in India, of the standalone net profit after tax and other comprehensive income and other financial lnformatior of the Company for the year ended 31 December 2019.

Basis for Opinion

1. We conducted our audit In accordance with the Standards on Auditing ('SAs') specified unde, section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statement section of our report. We are independenl of the Company in accordance with the Code of Ethics issued by the Institute of Charterec Accountants of India ('the ICAI') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our opinion.

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Ch1rten,d Acco«nt.ant.

Offl�a In Bengaluru, Chandlgarti, Channel, Gurugram, Hyderabad, Koehl, Kolkata, Mumbai, New Delhi, Nolde and Puna

Walker Chendlolk & C;: LLP I• roglolored wllh llmtted llabl ty wtll ldenUllceUon number AAC·2-e5 aro: tta regloten>d offlcs et L-41 Connat.1ht Ct:us, New Deihl, 110001, India

Walker Chandiok &.Co LLP

CRISIL Limited

Independent Auditor's Report on Standalone Annual Flnanclal Results of the Company Pursuant to the Regulatlon :£4 of the SEBI (Listing Obllgatlons and Disclosure ReqlJ.lrements) Regulations, 2015 (as amended)

Management's and Those Charged with Governance Responsibilities for the Statement

4. This Statement has been prepared on the basis of the standalone annual financial statementE. The Company's Board of Directors Is responsible for the preparation and presentation of th,;, Statement that gives a true and fair view of the net profiUloss and other comprehensive income and other financial information of the Company in accordance with the accounting principles generally accepted in India, including Ind AS prescribed under Section 133 of the Act, read wit� relevant rules issued thereunder and other accounting principles generally accepted in India. and in compliance with Regulation 33 of the Listing Regulations including the SEBI Circular. This responsibility also Includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventin£­ and detecting frauds and other irregularities; selection and application of appropriate­ accounting policies; making judg,nents and estimates that are reasonable and prudent; anc design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the Statement that gives a true and fair vievr and is free from material misstatement, whether due to fraud or error.

5. In preparing the Statement, the Board of Directors is responsible for assessing the Company'E ability to continue as a going concern, disclosing, as applicable, matters related to goin� concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but tc do so.

6. The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Statement

7. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under section 143(10) of the Act, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.

8. As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate In the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.

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ChlrteNd Aceounbrnll

Walker Chandiok &..Co LLP

CRISIL Limited

Independent Auditor's Report on Standalone Annual Financial Results of the Company Pursuant to the Regulation :a of the SEBI (LlsUng Obligations and Dlsclosure Requirements) Regulations, 2015 (as amended)

• Evaluate the appropriateness of accounting policies used and the reasonableness d accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of the management's use of the going concern basis d accounting and, based on the audit evidence obtained, whether a material uncertaint·, exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the ,Statement represents the underlying transactions and events in a manner that achieves fair presentation.

9. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significan: deficiencies in internal control that we identify during our audit.

10. We also provide those charged with governance with a statement that we have complied wit� relevant ethical requirements regarding independence, and to communicate with them a relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.

Other Matter

11. The Statement includes the financial results for the quarter ended 31 December 2019, beini; the balancing figures between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the third quarter of the current financial year. which were subject to limited review by us.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No.: 001076N/N500013

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Khushroo B. Panthaky Partner Membership No. 042423

UDIN No: 2-oo 4 2-'12->AA" AzLt 6S" '.'.J-

Place: Mumbai Date: 11 February 2020

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Ch1rur1d Accounlanbl

Walker Chandiok &.Co LLP

Walker Chandl� & Co LLP 16th Floor, -owe-II, lndiebulls F nanc» Centre, SB Marg, E:ihins;:one (W) Mumbai - 4 o OT.J India

T +91 22 6626 2e9 F +91 22 6626 2Sl1

Independent Auditor's Report on Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obllgatlons and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of CRISIL Limited

Opinion

1. We have audited the accompanying consolidated annual financial results ('the Statement') of CRISIL Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), (refer Annexure 1 for the list of subsidiaries included in the Statement) for the year ended 31 December 2019, attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ('the Listing Regulations'), including relevant circulars issued by the SEBI from time to time.

2. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of branch auditor on separate audited financial statements/ financial results/ financial information of the branch of a subsidiary, as referred to in paragraph 12 below, the Statement:

3. (i) includes the annual financial results of the following entities (refer Annexure 1 for the list of subsidiaries, included in the Statement);

4. (ii) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 (hereinafter referred to as 'the SEBI Circular'); and

5. (iii) gives a true and fair view in conformity with the applicable Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with relevant rules issued thereunder, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other comprehensive income and other financial information of the Group, for the year ended 31 December 2019.

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Walker Chandlok !. Co LP I• reglalered wtlh llmllad llabAI" wl h .. ntlfloal!on number AAC·200. and II raglatared office al L-41 Connaug• Clrca1, Now Deihl, 110001. lndla

Ch1rMred Accountanta

Oflloa• In Bongofun, Chandigarh, Chonnal, Gu,ugram, Hydorabod, Koehl, Kolkata. Mumbai, Now Deihl, Nolda and Puna

Walker Chandiok &..Co LLP

CRISIL Limited

Independent Auditor's Report on Consolldated Annual Flnanclal Results of the Company Pursuant to the Regulatlon :!3 of the SEBI (Listing Obllgatlons and Disclosure Requirements) Regulations, 2015 (as amended)

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing ('SAs') specified under sectio, 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor'; Responsibilities for the Audit of the Statement section of our report. We are independent of the Groui:. in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ('the ICAI') together with the ethical requirements that are relevant to our audit of the financial statement:; under the provisions of the Act, and the rules thereunder, and we have fulfilled our other ethicc:I responsibilities In accordance with these requirements and the Code of Ethics. We believe that the audl evidence obtained by us and that obtained by the branch auditor in terms of their reports referred to i111 paragraph 12 of the Other Matter section below, is sufficient and appropriate to provide a basis for ou­ opinion.

Management's and Those Charged with Governance Responsibilities for the Statement

1. The Statement, which is the responsibility of the Holding Company's management and has beer approved by the Holding Company's Board of Directors, has been prepared on the basis of thE consolidated annual financial statements. The Holding Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the consolidated ne profit or loss after tax and other comprehensive income, and other financial information of the Group ir accordance with the accounting principles generally accepted in India, including the Ind AS prescribec under section 133 of the Act, read with relevant rules issued thereunder and other accounting principle:: generally accepted in India and in compliance with Regulation 33 of the Listing Regulations, includin£ the SEBI Circular. The Holding Company's Board of Directors is also responsible for ensuring accurac� of records including financial information considered necessary for the preparation of the Statement. Further, in terms of the provisions of the Act, the respective Board of Directors/ management of the companies included in the Group, are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Group, and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design. implementation and maintenance of adequate internal financial controls, that were operating effectively, for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results, that give a true and fair view and are free from materiar misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.

2. In preparing the Statement, the respective Board of Directors of the companies included in the Group, are responsible for assessing the ability of the Group, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the respective Board of Directors/ management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

3. The respective Board of Directors/ management of the companies included In the Group, are responsible for overseeing the financial reporting process of the companies included in the Group.

Auditor's Responsibilities for the Audit of the Statement

1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under section 143(10) of the Act, will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error, and are considered material if, individually, or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.

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Cho.ur•d Accountants

Walker Chandiok &..Co LLP

CRISIL Limited

Independent Auditor's Report on Consolidated Annual Flnanclal Results of the Company Pursuant to the Regulation l:I of the SEBI (Listing Obllgatlons and Disclosure Requirements) Regulatlons, 2015 (as amended)

• As part of an audit in accordance with the Standards on Auditing, we exercise professional judgmert and maintain professional skepticism throughout the audit. We also:

• 8.

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud a error, design and perform audit procedures responsive to those risks, and obtain audit evidence that Is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud ma� involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Group, (covered under the Act) have adequate internal financial controls, system in place and the operating effectiveness of sue� controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accountini; estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basis of accountin!; and, based on the audit evidence obtained, whether a material uncertainty exists related to eventE or conditions that may cast significant doubt on the ability of the Group, to continue as a goini; concern. If we conclude that a material uncertainty exists, we are required to draw attention in ou1 auditor's report to the related disclosures in the Statement or, if such disclosures are Inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date ot our auditor's report. However, future events or conditions may cause the Group to cease tc continue as a going concern.

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial results/ financial information, financial statements of the entities within the Group, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities Included In the Statement, of which we are the independent auditors. For the branch of a subsidiary included in the Statement, which have been audited by the branch auditor. such branch auditor remains responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion.

9. We communicate with those charged with governance of the Holding Company and such other entities included in the Statement, of which we are the independent auditors, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

10. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

11. We also performed procedures in accordance with SEBI Circular CIR/CFD/CMD1/44/2Q1[g ] dated 29 March 2019, issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

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Chuc.rad AGcotlni.nta

Walker Chandiok �Co LLP

CRISIL Limited

Independent Auditor's Report on Consolidated Annual Flnanclal Results of the Company Pursuant to the Regulation ?3 of the SEBI (Listing Obllgatlons and Disclosure Requirements) Regulatlons, 2015 (as amended_)

Other Matter

1. We did not audit the annual financial statements/ financial information/ financial results of one branc, of a subsidiary included in the audited separate annual financial statements/ financial informatiorl financial results of the entities included in the Group, whose financial information reflects total assets ct f 1,146.29 lakhs as at 31 December 2019, total revenues off 2,760.62 lakhs, total net profit after ta< oft 1,323.39 lakhs, total comprehensive income of, 1,323.39 lakhs, and cash flows (net) of, 134.1 • lakhs for the year ended on that date, as considered in the respective audited separate annual financiel statements/ financial information/ financial results of the entities included in the Group. These annucl financial statements/ financial information/ financial results have been audited by branch auditor whose audit report has been furnished to us by the management, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch of a subsidiary is based solely on the audi report of such branch auditor, and the pr�cedures performed by us as stated in paragraph 11 above.

Further, the branch mentioned above is located outside India, whose annual financial statements' financial information/ financial results have been prepared in accordance with accounting principles generally accepted in its respective country, and which have been audited by branch auditor under the auditing standards used by them which are applicable in its respective country. The Holding Company's management has converted the financial statements/ financial information/ financial results of such branch of a subsidiary from accounting principles generally accepted in their respective countrr to accounting principles generally accepted in India. We have audited these conversion adjustmentE made by the Holding Company's management. Our opinion, in so far as it relates to the amounts anc disclosures included in respect of this branch of a subsidiary, is based on the audit report of branct­ auditor and the conversion adjustments prepared by the management of the Holding Company anc audited by us.

Our opinion is not modified in respect of this matter.

1. The Statement includes the consolidated financial results for the quarter ended 31 December 2019 being the balancing figures between the audited consolidated figures in respect of the full financial year and the published unaudited year-to-date consolidated figures up to the third quarter of the current financial year, which were subject to limited review by us.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No.: 001076N/N500013

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Khushroo B. Panthaky Partner Membership No. 042423

UDIN No: 2-.0°121 2..sAAAA B.!1, 2-� gs

Place: Mumbai Date: 11 February 2020

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Ch1rt,,.d Accountlnla

Walker Chandiok &.Co LLP

CRISIL Limited

Independent Auditor's Report on Consolldated Annual Flnanclal Results of the Company Pursuant to the Regulatlon :IJ of the SEBI {Listing Obllgatlons and Disclosure Requirements) Regulations, 2015 (as amended)

Annexure 1

List of entitles Included In the Statement

1. CRISIL Risk and Infrastructure Solutlons Limited

2. CRISIL lrevna UK Limited

3. CRISIL lrevna US LLC

4. CRISIL lrevna Poland Sp.Z.oo.

5. CRISIL lrevna Information Technology (Hangzhou) Co. Ltd.

6. Coalition Development Limited

7. Coalition Developmet Singapore Pte. Ltd.

8. CRIStl lrevna Argentina S.A

9. Pragmatix Services Private Limiteq

10. CRISiL Ratings Limited

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Chlnurod Accountanll