Page 178 - Crisil Annual Report 2023

Integrity Insight Impact
Summary of significant accounting policies and other explanatory information to the consolidated financial statements as at and for the year ended December 31, 2023
1. Corporate Information
CRISIL Limited (‘the Company’ or ‘CRISIL’ or ‘Parent’) (CIN: L67120MH1987PLC042363) and its subsidiaries (collectively referred to as ‘the Group’) is a globally- diversified analytical Company providing ratings, research, risk and policy consulting services. We are India’s leading ratings agency and the foremost provider of high-end research to the world’s largest banks and leading corporations. We deliver analysis, opinions, and solutions that make markets function better. CRISIL Limited is a public limited company, domiciled in India. The registered office of the Company is located at CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai - 400076. The equity shares of the Company are listed on recognised stock exchanges in India-the Bombay Stock Exchange and the National Stock Exchange.
S&P Global Inc. the ultimate Holding Company, through its subsidiaries owned 66.65% as on December 31, 2023 of the Company’s equity share capital. (refer to note 19).
These consolidated financial statements for the year ended December 31, 2023 were approved by the Board of Directors on February 16, 2024.
2. Summary of significant accounting policies
2.1 Statement of compliance
These consolidated financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.
2.2 Basis of consolidation
The Company consolidates all entities which are controlled by it. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as disclosed in note 2.6. Control exists when the Company has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity’s returns. In assessing control, potential voting rights are considered only if the rights are substantive.
The financial statements of subsidiaries are included in these consolidated financial statements from the date that control commences until the date that control ceases. For the purpose of preparing these consolidated financial statements, the accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Company.
Transactions eliminated on consolidation:
The financial statements of the Group Companies are consolidated on a line-by-line basis and all intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in full while preparing these consolidated financial statements.
Functional and presentation currency:
These consolidated financial statements are presented in Indian rupees, which is the functional currency of the parent Company. All financial information is presented in rounded to the nearest lakh, except when otherwise indicated.
2.3 Basis of preparation
These consolidated financial statements have been prepared under the historical cost convention on an accrual basis, except for certain financial instruments which are measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services on the transaction date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The consolidated financial statements have been prepared on going concern basis. The accounting policies are applied consistently to all the periods presented in the consolidated financial statements.
All the assets and liabilities have been classified as current or non- current as per the Group’s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash or cash equivalents, the Group has ascertained its operating cycle as twelve months for the purpose of current / non- current classification of assets and liabilities.
176 Annual Report 2023