Page 185 - Index

Mission-Critical Decisions, Made with Confidence.
Unrecognised deferred tax assets are reassessed at
each reporting date and recognised to the extent that
it has become probable that future taxable profits will
be available against which they can be used. Deferred
tax is measured at the tax rates that are expected to
be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at
the reporting date. The measurement of deferred tax
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount
of its assets and liabilities.
Deferred tax assets and liabilities are offset only if:
a) The Company has a legally enforceable right to
set off current tax assets against current tax
liabilities; and
b) The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.
2.24 Segment reporting policies
The Managing Director and Chief Executive Officer of
the Group has been identified as the Chief Operating
Decision Maker (CODM) as defined by Ind AS 108
Operating Segments. The CODM evaluates the Group’s
performance and allocates resources based on an
analysis of various performance indicators by industry
classes. Accordingly, segment information has been
presented for industry classes.
The Group is structured into two reportable business
segments – 1. Ratings services 2. Research, Analytics
and Solutions. The reportable business segments are in
line with the segment wise information which is being
presented to the CODM. Geographical information on
revenue and industry revenue information is collated
based on individual customers invoices or in relation
to which the revenue is otherwise recognised. The
accounting principles used in the preparation of the
consolidated financial statements are consistently
applied to record revenue and expenditure in individual
segments, and are as set out in the significant policies.
Assets and liabilities that are directly attributable
or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities
are disclosed as unallocable. Property, plant and
equipment that are used interchangeably among
segments are not allocated to reportable segments.
Inter segment transfers
The Group generally accounts for inter segment
services and transfers as if the services or transfers
were to third parties at arm length price.
Allocation of common costs
Common allocable costs are allocated to each segment
according to the relative contribution of each segment
to the total common costs.
Unallocated items
Unallocable income and expenses includes general
corporate income and expense items which are not
identified to any business segment.
2.25 Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted
average number of equity shares outstanding during
the period is adjusted for events such as buy back,
Employee Stock Option Scheme (ESOS), etc. that have
changed the number of equity shares outstanding,
without a corresponding change in resources.
For the purpose of calculating diluted earnings per
share, the Group has adopted treasury stock method to
compute the new shares that can possibly be created
by un-exercised stock options. The net profit or loss
for the period attributable to equity shareholders and
the weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.
2.26 Dividend
The final dividend on shares is recorded as a liability
on the date of approval by the shareholders. Interim
dividend is recognised as a liability on the date of
declaration by the Company’s Board of Directors.
2.27 Recent accounting pronouncements
Application of new and revised Indian Accounting
Standards (Ind AS)
All the Ind AS issued and notified by the Ministry
of Corporate Affairs under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) till
the consolidated financial statements are authorised,
have been considered in preparing these consolidated
Financial Statements.
Application of new accounting pronouncements
‘Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
December 31, 2024, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.
Annual Report 2024
183
Financial Statements