Page 281 - Crisil Annual Report 2023

Financial Statements
Standalone
As at December 31, 2022
Cash flow hedge
Foreign exchange forward contracts
USD 38 64,611 52,567
GBP 11 7,777 7,788
EUR 12 6,315 5,511
Jan to Dec'23
Jan to Dec'23
Jan to Dec'23
cash flow hedge
cash flow hedge
81.36
100.14
87.27
(1,469)
(67)
(172)
1,469
67
172
(C lakh)
965
(2,874) (123) 754 (1,278) 1,554 163 (432) 7
Type of Hedge
Currency
Number of contracts
Nominal value (Foreign currency in ‘000)
Carrying amount of hedging instrument (C lakh)
Maturity date
Weighted average strike price/rate
Changes in fair value of hedging instrument (C lakh)
Change in the hedging item used as the basis for recognising hedge effectiveness (C lakh)
Movement in cash flow hedging reserve
As at January 1, 2022
Add: Changes in fair value of effective portion of outstanding forecasted Add: Amounts reclassified to profit or loss
Less: Tax relating to above (net)
As at January 1, 2023
Add: Changes in fair value of effective portion of outstanding forecasted Less: Amounts reclassified to profit or loss
Less: Tax relating to above (net)
As at December 31, 2023
Particulars
Foreign exchange forward contract
The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. Hedge is broadly classified as revenue hedge and receivable hedge.
Revenue hedge: For forecasted revenue transaction, the Company will adopt cash flow hedge and record mark to market through OCI. Effective hedge is routed through OCI in the balance sheet and the ineffective portion is immediately routed through the statement of profit and loss.
36. Contingent liabilities and capital commitments:
A. Contingent liabilities
(C lakh)
Particulars
As at December 31, 2023
As at December 31, 2022
49,778
49,778
907
50,685
1. Claims against the Company not acknowledged as debts
Disputed income tax, sales tax, service tax and GST demand: 38,673
2. Provident fund
Based on the judgement by the Honorable Supreme Court dated 28 February 2019, past provident fund liability, is not determinable at present, in view of uncertainty on the applicability of the judgement to the Company with respect to timing and the components of its compensation structure. In absence of further clarification, the Company has been legally advised to await further developments in this matter to reasonably assess the implications on its financial statements, if any.
The Company periodically receives notices and inquiries from income tax authorities related to the Company’s operations in various jurisdictions. The Company evaluates these notices and inquiries and has concluded that any consequent income tax claims or demands by income tax authorities will not succeed on ultimate resolution other than what has been provided or disclosed herein.
B. Capital commitment
38,673
Estimated amount of contracts (net of advances) remaining to be executed on capital 135
account and not provided for
Total 38,808
Annual Report 2023 279