Page 253 - Index

Mission-Critical Decisions, Made with Confidence.
• Global research and risk solutions revenue consists
of time and material contracts which is recognised
on output basis measured by number of hours/
days/weeks worked at the rates specified in
the agreements.
• Revenue from infrastructure consulting, risk
management services and customer projects
and experience management program services
are recognised in accordance with percentage
completion method.
• Percentage of completion for infrastructure
consulting is determined based on the project cost
incurred to date as a percentage of total estimated
project cost required to complete the project.
• Revenue from risk management services comprise
of revenue from sale of software and annual
maintenance contracts. Revenue from sale of
software licenses are recognised upon delivery of
these licenses which constitute transfer of all risks
and rewards. Revenue from consultancy services
and sale of software which involves customisation
are recognised over execution period. Revenue from
annual maintenance contracts are recognised on a
time proportion basis.
Provision for estimated losses, if any, on uncompleted
contracts are recorded in the year in which such losses
become certain based on the current estimates.
Revenue from group companies is recognised based
on transaction price which is at arm’s length.
Unbilled receivables (only where act of invoicing
is pending) when there is unconditional right to
receive cash, and only passage of time is required,
as per contractual terms is classified under ‘Trade
Receivables’.
Accrued revenue where the right to consideration is
conditional upon factors other than the passage of
time are contract assets which are classified as non-
financial asset as the contractual right to consideration
is dependent on completion of contractual milestones.
Unearned and deferred revenue (“contract liability”)
is recognised when there are billings in excess
of revenues.
The billing schedules agreed with customers include
periodic performance based payments and/or
milestone based progress payments. Invoices are
payable within contractually agreed credit period.
Contracts are subject to modification to account for
changes in contract specification and requirements.
The Company reviews modification to contract in
conjunction with the original contract, basis which
the transaction price could be allocated to a new
performance obligation or transaction price of an
existing obligation could undergo a change. In the event
transaction price is revised for existing obligation, a
cumulative adjustment is accounted for.
2.15 Other Income
Interest income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.
Dividend income
Dividend Income is recognised when the Company’s
right to receive payment is established by the balance
sheet date.
Profit /(loss) on sale of current investment
Profit /(loss) on sale of current investment is accounted
when the sale is executed. On disposal of such
investments, the difference between the carrying
amount and the disposal proceeds, net of expenses, is
recognised in the statement of profit and loss.
2.16 Retirement and other employee benefits
Short term employee benefits
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised for
the amount expected to be paid if the Company has
a present legal or constructive obligation to pay this
amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
Defined benefit plans
The Company’s net obligation in respect of defined
benefit plans is calculated separately for each plan
by estimating the amount of future benefit that
employees have earned in the current and prior
periods, discounting that amount and deducting the
fair value of any plan assets.
Annual Report 2024
251
Financial Statements