Page 252 - Index

on the date on which a derivative contract is
entered into and are subsequently re-measured
at fair value. Derivatives are carried as financial
assets when the fair value is positive and as
financial liabilities when the fair value is negative.
The Company uses hedging instruments that are
governed by the policies of the Company.
(i) Cash flow hedges
Changes in the fair value of the derivative
hedging instrument designated as a
cash flow hedge are recognised in other
comprehensive income and presented within
equity in the cash flow hedging reserve to
the extent that the hedge is effective. To
the extent that the hedge is ineffective,
changes in fair value are recognised in
the statement of profit and loss. If the
hedging instrument no longer meets the
criteria for hedge accounting, expires or is
sold, terminated or exercised, then hedge
accounting is discontinued prospectively.
The cumulative gain or loss previously
recognised in the cash flow hedging reserve
is transferred to the statement of profit and
loss upon the occurrence of the related
forecasted transaction.
(ii) Receivable hedge
Changes in fair value of foreign currency
derivative instruments not designated as
cash flow hedges and the ineffective portion
of cash flow hedges are recognised in the
statement of profit and loss and reported
within foreign exchange gains/(losses).
Derecognition of financial instruments
The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and
the transfer qualifies for derecognition under Ind AS
109. The changes in fair value of equity investments
designated at FVTOCI are accumulated within ‘Equity
instruments at OCI’ reserve within equity. The Company
transfers amounts from this reserve to retained
earnings if these equity instruments are derecognised.
A financial liability (or a part of a financial liability)
is derecognised from the Balance Sheet when the
obligation specified in the contract is discharged or
cancelled or expires.
250 Annual Report 2024
Standalone
2.12 Provision, contingent liabilities and contingent
assets:
A provision is recognised when the Company has a
present obligation (legal or constructive) as a result
of past event and it is probable that an outflow of
resources will be required to settle the obligation,
in respect of which reliable estimate can be made.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance costs.
Contingent liabilities are disclosed for:
(i) possible obligations which will be confirmed only
by future events not wholly within the control of
the Company or
(ii) present obligations arising from past events where
it is not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot
be made.
Contingent assets are disclosed wherein an inflow of
economic benefits is probable.
2.13 Cash and cash equivalents
Cash and cash equivalents in the balance sheet
comprises of cash at bank, cash on hand and shortterm
investments with an original maturity of three months
or less.
2.14 Revenue recognition
Income from operations
Income from operations comprises income from global
research and risk solutions, customised research,
special assignments and subscriptions to information
products and services, independent equity research
(IER) services, IPO grading services, infrastructure
consulting and risk management services.
• Subscription to information products and services
and revenue from IER are accounted on a time
proportion basis and revenue is straight lined over
the period of performance.
• Revenue from customised research and IPO
grading are recognised in the period in which
such assignments are carried out in a time
proportion basis.