1.  Nature of operations
 
 CRISIL is a globally-diversified analytical company providing ratings
 and research services. CRISIL is indias leading ratings agency and the
 foremost provider of high- end research to the worlds largest banks
 and leading corporations. With sustainable competitive advantage
 arising from strong brand, unmatched credibility, market leadership
 across businesses, and large customer base, CRISIL deliver analysis,
 opinions, and solutions that make markets function better.
 
 2.  Details of Contingent Liabilities and Capital Commitments are as
 under :
 
                                                            (Rupees)
 
                                         Year Ended       Year Ended
                                        Dec 31, 2010    Dec 31, 2009
 
 1. Bank guarantee in the normal 
     course of business                  9,982,393        9,050,586
 
 2. Disputed Income Tax & Sales Tax Demand:
 
 (i) Pending before appellate 
 authorities in respect of              16,070,858       23,359,888
 which the Company is in appeal
 
 (ii) Decided in Companys favour by 
 appellate authorities                  22,513,543       18,212,021
 and department is in further appeal
 
 3. Estimated amount of contracts 
 (net of advances) remaining            17,797,299       89,025,159
 to be executed on capital account and 
 not provided for
 
 TOTAL                                  66,364,093      139,647,654
 
 3.  Income tax
 
 The tax year of the Company being the year ending March 31, 2011, the
 provision for tax for the year is the aggregate of the provision made
 for the three months ended March 31, 2010 and the provision for the
 nine months upto December 31, 2010. the tax provision for nine months
 has been arrived at using the effective tax rate for the period April
 1, 2010 to March 31, 2011, the ultimate tax liability of which will be
 determined for the period April 1, 2010 to March 31, 2011.
 
 4. The Company has the process of identification of suppliers
 registered under the the Micro, Small and Medium Enterprises
 Development (MSMED) Act, 2006 by obtaining confirmations from
 suppliers.  There are no Micro, Small and Medium Enterprises, as
 defined in the Micro, Small, Medium Enterprises Development Act, 2006
 to whom the company owes dues on account of principal amount together
 with interest and accordingly no additional disclosures have been made.
 
 5.  Segment reporting
 
 Business Segments:
 
 The Company has two major business segment: Ratings and Research. A
 description of the types of products and services provided by each
 reportable segment is as follows:
 
 Rating services includes credit ratings for corporates, banks, small
 and medium enterprises (SME), training in the credit rating field,
 credit analysis services, grading services and global analytical
 services research segments provides high end equity research, industry
 reports, customised research assignments, subscription to data services
 and IPO gradings
 
 6.  List of related parties
 
 Parties                                   Relationship
 
 Related parties where control exists
 
 The Mcgraw-hill Companies, Inc         The ultimate holding Company
 
 CRISIL Risk and Infrastructure 
 Solutions Limited                      Subsidiary
 
 Irevna Limited, UK                     Subsidiary
 
 Irevna LLC, USA                        Subsidiary of Irevna Limited, UK
 
 CRISIL Credit information services 
 Limited                                Subsidiary
 
 CRISIL Irevna Poland Sp.zo.o           Subsidiary of Irevna Limited, UK
 
 CRISIL Irevna Argentina S.A.           Subsidiary
 
 CRISIL Irevna Information Technology 
 (Hangzhow) Co., Ltd*                   Subsidiary
 
 Pipal research analytics and information 
 services India                         Subsidiary
 Private Limited
 
 Other Related Parties
 
 S&P India, LLC                         Fellow Subsidiary
 
 Standard & Poors LLC                  Fellow Subsidiary
 
 Standard & Poors International 
 LLC, USA                               Fellow Subsidiary
 
 Standard & Poors South Asia Services 
 Private Limited                        Fellow Subsidiary
 
 Mcgraw-hill Education India Private 
 Limited                                Fellow Subsidiary
 
 India index services and Products 
 Limited                                Joint Venture
 
 Key Management Personnel
 
 Roopa Kudva                            Managing Director & Chief
                                        Executive Officer
 
 *Company incorporated but yet to commence business operations.
 
 7.  Gratuity and Leave Encashment Benefits
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with an insurance company in the form of a
 qualifying insurance policy.
 
 The following tables summarise the components of net benefit expense
 recognised in the Profit and Loss account and the funded status and
 amounts recognised in the Balance sheet for the respective plans.
 
 8.  CRISIL Limited sold balance 10% stake in gas Strategies group
 Limited in September 2010.
 
 9.  during the current year, company has initiated a hedge programme
 to mitigate foreign exchange (forex) related risk. Initially the hedge
 programme covered only forex receivable for which CRISIL followed AS 11
 Accounting for the Effects of Changes in Foreign Exchange Rates.
 however, at the later part of the year, CRISIL has increased the hedge
 programme to cover forecasted revenue as against receivable as a part
 of risk management strategy. Accounting for revenue hedge is done as
 per guidelines prescribed under AS 30 Financial Instruments:
 Recognition and Measurement, wherein mark to market on forward
 contracts are routed through hedging reserve account.
 
 10. In accordance with Sec 77A, 77AA and 77B of the Companies act,1956
 and pursuant to the buy back announcement made by the Company on
 September 9, 2010 the Company has bought back from the open market
 through stock exchanges 128,156 equity shares of Rs. 10 each during the
 year for a total consideration of Rs.796,858,024 which have been
 subsequently extinguished.  Consequently, an amount of rs.1,281,560
 being the nominal value of equity shares bought back has been
 transferred to Capital redemption reserve account from General reserve.
 an amount of Rs. 474,890,071 being the premium on buy back has been
 appropriated from securities Premium. an amount of Rs. 320,686,393
 being the balance premium on buy back has been appropriated from
 General reserve. the Board of directors, at its meeting held on
 September 9, 2010 approved the buyback of equity shares of the Company.
 
 11.  on 3rd December 2010, CRISIL Limited acquired 100% ownership in
 Pipal Research analytics and information services India Private
 Limited.
 
 12.  Prior period item includes gratuity expense rs.27,444,953 (net of
 tax).
 
 13.  Previous Year Comparatives
 
 Previous years figures have been regrouped where necessary to conform
 to current years classification.