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The Credit Rating Information Services of India Limited
U
NAUDITEDF
INANCIALR
ESULTS FOR THE QUARTER ENDEDS
EPTEMBER30, 2002
OCTOBER 11, 2002 The Board of Directors of The Credit Rating Information Services of India Limited (CRISIL) at its meeting held today approved the Unaudited Financial Results for the quarter ended September 30, 2002. The total income was Rs.17.48 crores as against Rs 15.48 crores (13%)* in the corresponding quarter of the previous year. Profit before depreciation and taxation stood at Rs. 8.30 crores as against Rs 7.25 crores (15%) in the corresponding quarter of the previous year. After providing for depreciation of Rs. 1.80 crores and taxation of Rs 2.35 crores, the net profit after tax was Rs 4.15 crores as against Rs. 3.08 crores (35%) in the corresponding quarter of the previous year. For the half year ended September 30, 2002, the total income was Rs.32.57 crores against Rs 28.89 crores (13%) in the corresponding half of the previous year and the net profit after tax Rs. 7.30 crores as against Rs.5.90 crores (24%) in the corresponding half of the previous year.
Ratings were assigned to 27 new Companies during the second quarter. The Ministry of Power, Government of India, commissioned Crisil for rating fifteen State Governments on their power sector reforms and the viability of their respective power sectors. Crisil made significant strides in the hospital grading activity with 12 rating assignments having been completed and five ratings announced. Revenues in the structured finance rating segment were buoyant. Crisil continued its pioneering efforts and rated two new products including an on-tap securitization and personal loan securitization. Crisil also formulated the analytical framework for two new products viz. a 'risk grading framework for film financing' and a scoring model for Indian corporates to measure 'value creation through good governance'.
Crisil’s interaction with Standard & Poors’(S & P) continues to be strong. Good progress has been made on key outsourcing initiatives.
Crisil’s information business continued to grow in its traditional markets comprising of banks, manufacturing & service sector companies. This has been driven by the need for quality information for decision making in the face of greater uncertainties.
Cris-Risk & Information Solutions Company Limited (Cris-Risc) the wholly owned subsidiary of Crisil launched the Crisil MarketWire.com and Crisil Fund Tracker in the marketplace to satisfactory response. The Crisil Equity Wire (CEW) project is under implementation and it is expected to be launched in January 2003.
Crisil Infrastructure Advisory carried out some notable assignments including the valuation of Maharashtra Scooters Ltd shares, formulation of Infrastructure Development Act for the State of Maharashtra, financial restructuring of Maharashtra State Road Development Corporation (MSRDC), master planning for Andhra Pradesh, formulating reform agenda for Ahmedabad Muncipal Corporation. The division also completed milestones in the execution of the various multilateral assignments, it had won in the face of international competition. In the financial sector, Crisil bagged a prestigious assignment from a large Gulf based bank to prepare a business plan for their proposed expansion of operations in India and also advised the German Financial Institution on their impending plans to offer structured credit support to Indian corporates.
R. Ravimohan Managing Director & Chief Executive Officer
* Figures in parenthesis represent growth over previous year’s corresponding period
Press Release - October 11, 2002
India Business Watch ..2
Particulars 2nd Quarter ended Half Year ended Year ended
30.09.2002 30.09.2001 30.09.2002 30.09.2001 31.03.2002 Unaudited Unaudited (Audited)
Income from Operations 1675.97 1499.03 3140.19 2799.31 6677.37
Other Income 72.23 49.06 116.45 89.87 160.8
Extraordinary Income - - - - 91.29
Total Income 1748.2 1548.09 3256.64 2889.18 6929.46
Total Expenditure 917.81 823.32 1764.36 1544.5 3315.94
(A) Staff Expenses 438.93 351.16 842.31 659.52 1538.6
(B) Establishment Exps 165.74 153.06 303.42 318.82 635.97
(C) Professional Fees 150.46 175.4 258.95 286.9 522.62
(D) Other Expenses 162.68 143.7 359.68 279.26 618.75
Interest - - - -
Provision for contingencies written back - - - - -50
Depreciation 180.45 216.63 337.2 391.63 701.25
Profit before Tax 649.94 508.14 1155.08 953.05 2862.27
Income Tax Arrears - - - - 524.51
Provision for Taxation 235 200.31 425 362.78 1030
Net Profit after Tax 414.94 307.83 730.08 590.27 1307.76
Paid up Equity Share Capital (face value of each share – Rs.10/-)
623.43 620 623.43 620 620
Earnings Per Share (E.P.S.) Rs.
- Basic 6.66 4.97 11.71 9.52 21.09
- Diluted 6.66 4.97 11.71 9.52 21.09
Aggregate of non-promoter shareholding
(A) Number of shares 39,56,595 3,828,491 39,56,595 3,828,491 3,891,314 (B) Percentage of holding (to total
shareholding)
63.46 61.75 63.46 61.75 62.76
Segmental Reporting ( Rs. in Lacs )
Particulars Quarter Quarter Half year Half year Year Ended
Ended Ended Ended Ended
30/09/2002 30/09/2001 30/09/2002 30/09/2001 31/03/2002 1. Segmental Revenue
A. Ratings 1057.36 1174.75 2146.11 2113.20 4943.12
B. Advisory services. 477.49 210.82 726.01 464.19 1196.41
C. Information services. 141.12 113.46 268.07 221.92 537.84
TOTAL 1675.97 1,499.03 3140.19 2,799.31 6677.37
Less: Inter Segment Revenue - - - -
Net Income from Operations 1675.97 1,499.03 3140.19 2,799.31 6677.37 2. Segmental Profits
A. Ratings 552.70 950.83 1157.29 1735.66 3177.94
B. Advisory services. 207.64 51.70 294.00 167.73 424.63
C. Information services. 20.68 8.05 22.29 24.24 25.36
TOTAL 781.02 1010.58 1473.58 1,927.63 3627.93
Less:
1. Interest - - -
2. Other unallocable expenses 131.08 502.44 318.50 974.58 765.67 net off unallocable income
Total Profit Before Tax 649.94 508.14 1155.08 953.05 2862.26
Press Release - October 11, 2002
India Business Watch ..3
Consolidated Profit & Loss Account
(Rs. in lacs) Quarter
Ended 30/9/2002
Quarter Ended 30/9/2001
Half year Ended 30/9/2002
Half year Ended 30/9/2001 Income from Operations 1777.25 1381.08 3339.98 2849.50
Other Income 72.73 49.06 117.90 89.92
Total Income 1849.98 1430.14 3457.88 2939.42
Expenses
- Staff Expenses 562.19 417.71 1085.88 812.60
- Establishment Expenses 203.82 169.21 381.54 361.98
- Other Expenses 251.48 78.43 484.46 425.58
Total Expenses 1017.49 665.35 1951.88 1600.15
Profit before Depreciation 832.49 764.80 1506.00 1339.27
Depreciation 190.95 223.13 355.20 404.63
Profit before Tax 641.54 541.67 1150.80 934.64
Provision for Taxation 235.77 200.31 432.02 364.67
Profit after Tax 405.77 341.36 718.78 569.98
Notes :
1. The above results were taken on record at the meeting of the Board of Directors of the Company held on October 11, 2002.
2. Previous year’s figures have been restated to conform with the change in the method of accounting in respect of initial rating fees. Crisil now recognises initial rating fee fully on completion of rating assignment instead of accruing over 12 months as done in the past. Consequent upon the change in policy, income from operations for previous corresponding quarter is higher by Rs. 56.88 lacs and accordingly Tax provision is higher by Rs. 20.31 lacs
3. For segmental reporting, the method of allocation of overheads has been refined during the current year. Hence, segmental profits for the current periods and corresponding previous periods are not strictly comparable.
4. Provision for Taxation for the half year ended September 30, 2002 includes Rs. 10 lacs on account of provision for deferred tax liability.
5. The company’s operations predominantly relate to providing rating, advisory and research and information services. Accordingly, revenues earned through rendering of these services represent the primary basis of segmental information set out above.
6. Fixed assets used in the company’s 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 disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
7. Professional fees include outsourcing charges paid to subsidiaries.
8. During the quarter ended September 30,2002 Company has allotted 34,300 shares to its Directors/employees under the Employees Stock Option Scheme (ESOP).
9. Holding of non-promoters taken to confirm technically to Securities and Exchange Board of India (Substantial Acquisition of Shares & Takeovers) Regulations, 1997,
Press Release - October 11, 2002
India Business Watch ..4
even though CRISIL is a widely held, professionally managed Company. Promoter defined under the Regulations include persons named in the offer document as
‘promoters’. Accordingly, Crisil’s main promoters are ICICI Bank Ltd, Unit Trust of India, State Bank of India, Central Bank of India, Canara Bank, Life Insurance Corporation of India, General Insurance Corporation of India and its subsidiaries and United India Insurance Company Ltd.
10. Consolidated Profit and Loss Account includes account of The Credit Rating Information Services of India Ltd., Crisil Research and Information Services Ltd., Cris–Risk & Information Solutions Company Ltd., Global Data Services of India Ltd.
and Crisil Properties Ltd.
For and on behalf of the Board R. Ravimohan Mumbai, October 11, 2002 Managing Director & Chief Executive Officer
