Page 277 - Crisil Annual Report 2023

Financial Statements
Standalone
Following is the currency profile of non-derivative financial assets and financial liabilities:
Particulars
As at December 31, 2023
(Foreign Currency in ‘000)
(C lakh)
Financial assets
Financial liabilities
Financial assets
Financial liabilities
41,475
6,353
34,569
5,296
549
18
586
19
1,856
24
1,718
23
1,736
1,716
394
389
233
2,778
70
465
USD GBP EURO AED Others
USD 36,999
GBP 1,923
EURO 1,530
AED 895
Others 1,074
4,917
106
21
1,800
3,670
30,660 4,075
1,915 105
1,345 19
202 406
103 639
Particulars
As at December 31, 2022
(Foreign Currency in ‘000)
(C lakh)
Financial assets
Financial liabilities
Financial assets
Financial liabilities
For the year ended December 31, 2023, every 5% increase/decrease of the respective foreign currencies compared to functional currency of the Company would impact operating margins by C 1,557 lakh (+/- 4.58%). For the year ended December 31, 2022, operating margins would increase/decrease by C 1,449 lakh (+/-5.98 %). Exposure to foreign currency exchange rate vary during the year depending upon the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Company’s exposure to currency risk.
Price risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company has adopted disciplined practices including position sizing, diversification, valuation, loss prevention, due diligence, and exit strategies in order to mitigate losses.
The Company is exposed to price risk arising mainly from investments in mutual funds recognised at FVTPL. The details of such investment are given under note 8. If the prices had been higher/lower by 5% from the market prices existing as at the reporting date, profit would increase/decrease by C 2,821 lakh and C 1,646 lakh for the year ended December 31, 2023 and for the year ended December 31, 2022 respectively.
The Company is also exposed to price risk arising mainly from investments in equity instruments recognised at FVTOCI. The details of such investment are given under note 8. If the equity prices had been higher/lower by 5% from the market prices existing as at the reporting date, OCI for the year ended December 31, 2023 would increase/decrease by C 1,248 lakh and C 796 lakh for the year ended December 31, 2022.
34.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. For the Company, liquidity risk arises from obligations on account of financial liabilities - trade payables and other financial liabilities.
Liquidity risk management
The Company continues to maintain adequate amount of liquidity/treasury to meet strategic and growth objectives. The Company has ensured a balance between earning adequate returns on liquidity/treasury assets and the need to cover financial and business risks. The Company’s treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.
Annual Report 2023 275