CRISIL Limited: Unaudited Financial Results for the quarter ended June 30, 2005

July 21, 2005. Mumbai

The Board of Directors of CRISIL Limited, India's leading Ratings, Financial News, Risk and Policy Advisory company, at its meeting held today, approved the Unaudited Financial Results for the quarter ended June 30, 2005. The consolidated total income was Rs. 37.47 crores as against Rs. 25.29 crores (+48%)^* in the corresponding quarter of the previous year. The consolidated Profit before depreciation and taxation stood at Rs. 9.59 crores as against Rs. 7.06 crores (+36%) in the corresponding quarter of the previous year. After providing for depreciation of Rs. 1.52 crore and taxation of Rs. 2.50 crores, the net profit after tax was Rs. 5.57 crores as against Rs. 3.24 crores (+72%) in the corresponding quarter of the previous year. Consolidated accounts include accounts of CRISIL Ltd. and its subsidiaries CRISIL Research and Information Services Ltd., CRISIL MarketWire Ltd., Global Data Services of India Ltd., CRISIL Properties Ltd., EconoMatters Limited (UK) and its subsidiaries, Irevna Research Services Pvt Ltd, Irevna Limited (UK) and its subsidiary, and proportionate share in income and expenses of joint venture India Index Services & Products Ltd. The accounts of Irevna Research Services Limited and Irevna Limited (UK) and its subsidiary have been included from the month of June 2005. After the achievement of majority shareholding by Standard & Poor's, the programme to synergise businesses of CRISIL and Standard & Poor's is progressing well and will be ongoing.

CRISIL Ratings continued to grow and maintain its leadership position in the domestic ratings business. CRISIL Ratings focussed its efforts on launching new rating products i.e. Bank loan ratings, and on GVC ratings and various Fund Services products. CRISIL emerged as the first and only rating agency in India to release its Default Study, which was well received by investors/issuers. CRISIL Ratings signed a MoU with NSIC to rate Small Scale Industries (SSI) on a special rating scale and entered into an exclusive tie-up with NABARD for rating Micro Finance Institutions. CRISIL Ratings also assigned the first Fund House Rating during the quarter. The Ratings business continued its focus on outreach initiatives for building strong franchise with issuers, investors, regulators and other market participants.

CRISIL Infrastructure Advisory executed several key assignments in the power and urban infrastructure sectors, including a cluster of assignments for gas and coal sourcing for power companies, reforms in the urban sector, assignments for infrastructure creation through public-private partnerships and with respect to creation of power exchange, reforms, and tariff submissions. The division completed the assignments with the African Development Bank for developing service level agreements for corporate functions. The major mandates received during the quarter include an assignment to act as the principal strategic consultant to National Thermal Power Corporation for its mining initiatives, an assignment with a gas company for assessment of markets, regulation and pricing, and an assignment with the West Bengal Infrastructure Corporation for conceptualising infrastructure development in the state.

The Investment & Risk Management Services of CRISIL (CIRM) signed its first international agreement with a foreign bank in the Middle East for implementing credit risk solutions for the bank. The division also secured its first mandate from a private sector bank for implementation of the credit risk models. CIRM also began implementation of the Capital Assessment Model at a leading private sector bank, a first in India. The Capital Assessment Model is used for computing Basel II regulatory capital. FIMMDA has adopted CRISIL's bond valuation matrix for its monthly valuation, and will transition to valuation on a weekly basis. CIRM also added two mutual funds as additional clients in the valuation services.

The Research & Information Services business of CRISIL adopted a three pronged approach to drive growth: ensuring retention of existing client base and penetrating deeper into the focus segments, Banks and Corporates; enhancing the value of client relationships by offering additional research products; showcasing the integrated domain expertise to undertake customised assignments. The business has been promoting unique macro-micro integrated research strengths with respect to customised assignments, to assist corporates in India including MNCs to quantify/identify demand drivers and their likely direction over the short and long term.

CRISIL completed the acquisition of the Irevna group of Companies in the quarter and is in the process of integrating the organisation and processes. During the quarter, Irevna launched bad bank analysis project onsite in Germany with support in India; the mandate represents a head-to-head victory over major consulting firms. Irevna also displaced the incumbent outsourcing firm that a foreign company was using for copy editing services.

Concluded.

* Figures in parentheses represent growth over previous year.

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