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Financial Statements 2024

ICRISAT Financial Statements

For the year ended December 31, 2024

Transforming Dryland Agriculture

ICR SAT

Contents

Statement of the Board Chair

Management Representation

Board Statement on Risk Management

Independent Auditors’ Report

Financial Statements

Statement of Financial Position

Statement of Activities and OCI

Statement of Changes in Net Assets

Statement of Cash Flows

Notes to the Financial Statements

Schedules

Schedule A – Property, Plant and Equipment

Schedule B – Calculation of Indirect Cost Rate

Appendices

Appendix 1 – Accounts Receivable - Donors

Appendix 2 – Funds Received in Advance - Donors

Appendix 3 – Region wise expenditure

Appendix 4 – Center Staff Details

ICRISAT Financial Statements 2024 | 1

It is with assurance in our direction and pride in our progress that I present the financial report for

the year 2024 on behalf of the Governing Board of the International Crops Research Institute for the

Semi-Arid Tropics (ICRISAT).

This past year has seen ICRISAT make important strides toward financial consolidation and strategic

growth. Revenue improved, underpinned by a rise in new bilateral engagements and mission-aligned

partnerships. By delivering scalable, science-based solutions, these initiatives demonstrate our

continued commitment to meeting the evolving demands of dryland agriculture and supporting the

millions who rely on it for their livelihoods.

In parallel, we have made steady progress in reducing our operational deficit. Through disciplined

financial stewardship, improved cost controls, and enhanced internal efficiency, we have moved

closer to our goal of achieving a nil deficit.

Looking ahead, ICRISAT is advancing a dual strategic focus: financial innovation and deeper

institutional alignment. The Institute is actively exploring new and innovative financing models to

complement traditional donor support. These approaches aim to diversify income streams, unlock

catalytic capital, and establish more agile funding mechanisms that accelerate impact across the

Global South.

This objective is being pursued through a whole-of-ICRISAT approach, ensuring that a culture of

financial accountability and prudent but strategic resource management is embedded across the

organization as we work toward building sustainable reserves and securing long-term resilience.

In parallel, 2024 has marked significant progress in ICRISAT’s integration within the CGIAR. This

alignment is strengthening our role within a global network of research excellence, enabling more

coordinated resource mobilization, deeper collaboration, and a unified response to the increasingly

complex challenges of agriculture, climate resilience, and food security.

ICRISAT's strong performance is a testament to its standing as a world leader in dryland agricultural

research and innovation. Our work continues to generate tangible outcomes for smallholder farmers

living in some of the world’s most challenging environments, and our contributions remain central to

global efforts to build resilient food systems.

The financial report that follows reflects not only the health of our finances but also our collective

determination to align resources with mission, strengthen partnerships, and deliver lasting impact.

We are deeply grateful to our donors, governments, partners, and dedicated staff who make this

work possible.

Prof. Prabhu Pingali

Chair of the Governing Board

International Crops Research Institute for the Semi-Arid Tropics

Statement of the Board Chair

2 | ICRISAT Financial Statements 2024

Management Representation

Management Statement of Responsibility for Financial Reporting for the year ended December 31,

2024.

ICRISAT management is required to prepare annual financial statements and is responsible for the

accuracy and reliability of the financial information.

The accompanying annual financial statements of ICRISAT, for the year ended December 31, 2024

have been prepared in accordance and fully compliant with International Financial Reporting

Standards (IFRS).

ICRISAT maintains a system of internal controls designed to provide reasonable assurance that

assets are safeguarded and that ICRISAT's financial transactions are properly recorded in line with

Management's delegated authority.

ICRISAT's financial reporting system provides Management with regular, timely and accurate views

of its operations and enables Management to identify and discern risks while at the same time

providing a reliable basis for the annual financial statements and management reports.

ICRISAT relies on Internal Audit to provide regular and ongoing internal audits and recommendations

regarding the adequacy and effectiveness of the Centre’s policies, procedures and internal controls.

The Governing Board exercises its responsibility for these annual financial statements through its

Audit and Risk Committee. This Committee meets regularly with Management and representatives

of external and internal auditors to review matters relating lo financial reporting, risk management,

internal control, and auditing.

Management is of the opinion that the annual financial statements, as presented in this document,

give a true and fair view of ICRISAT's financial affairs and results for the year ended December 31,

2024.

ICRISAT Financial Statements 2024 | 3

Board Statement on Risk Management

The Governing Board of ICRISAT has the responsibility for ensuring that an appropriate risk

management system is in place. This enables management to identify, and take steps to mitigate

significant risks to the achievement of the Institute’s objectives, in alignment with CGIAR-wide

risk management principles and guidelines.

In 2024, ICRISAT’s risk management practices continued maturing towards integrating a risk-

based approach into strategic decision making as well as in its operations. ICRISAT has made this

a routine part of good corporate governance practice, which includes implementation of

appropriate internal control systems. Such controls by their nature are designed to manage

rather than eliminate risk. ICRISAT also endeavors to manage risk by ensuring that appropriate

infrastructure, controls, systems and people are in place throughout the Institute. The

Management reviews key risks that are directly related to achieving the Center’s objectives.

ICRISAT's risk management practices are in line with the risk management framework approved

by the CGIAR System Council, as part of the enhanced Risk and Oversight Plan across CGIAR.

This plan clearly outlines the roles and responsibilities of Center Boards and Centers.

ICRISAT has adopted a risk management policy which has detailed guidelines on managing key

risks, including risks in the areas of research, workforce, investments, finances and

infrastructure. The policy includes a framework by which the Institute’s management identifies,

evaluates and prioritizes risks, develops risk mitigation strategies that balance benefits with

costs, monitors the implementation of these strategies, takes necessary corrective actions, and

reports to the Governing Board.

The Board has reviewed the implementation of the policy and is satisfied that ICRISAT has

adopted and implemented a comprehensive risk management system.

Prof. Prabhu Pingali

Chair of the Governing Board

International Crops Research Institute for the Semi-Arid Tropics

4 | ICRISAT Financial Statements 2024

Independent Auditors’ Report

ICRISAT Financial Statements 2024 | 5

6 | ICRISAT Financial Statements 2024

ICRISAT Financial Statements 2024 | 7

International Crops Research Institute for the Semi-Arid Tropics

Statement of Financial Position as at December 31, 2024

(All amounts in thousands of United States Dollars)

See accompanying notes to the financial statements

Himanshu Pathak

Director General

Ramkumar Ramaswamy

Director Corporate Services

Note

As at

Dec 31, 2024

As at

Dec 31, 2023

Assets

Current Assets

Cash and cash equivalents

3,787

4,676

Investments

206

Receivables

- Donors

7,363

10,616

- Employees

453

540

- CGIAR Centers

613

407

- Others

9,510

12,921

Prepaid expenses

110

Inventories

628

668

Total Current Assets

22,670

29,920

Other Assets Held for Disposal

331

318

Non Current Assets

Property, plant and equipment

16,855

17,615

Investments

4,291

4,586

Other Non-current assets

466

1,935

Total Non Current Assets

21,612

24,136

Total Assets

44,613

54,374

Liabilities

Current Liabilities

Payables

- Deferred income from Donors

4,646

7,908

- Employees

180

201

- CGIAR Centers

458

142

- Others

5,883

6,159

- Provision

673

- Accruals

137

103

Total Current Liabilities

11,977

15,186

Total Liabilities

11,977

15,186

Net Assets

Unrestricted Net Assets

- Undesignated

(10,750)

(4,025)

- Designated

21,113

Total Unrestricted Net Assets

10,363

17,088

Temporary Net Assets - Other Comprehensive Income

4,789

4,616

Revaluation reserve

11,338

Restricted Net Assets

6,146

Total Net Assets

32,636

39,188

Total Liabilities and Net Assets

44,613

54,374

8 | ICRISAT Financial Statements 2024

International Crops Research Institute for the Semi-Arid Tropics

Statement of Activities and Other Comprehensive Income, for the Year Ended December 31, 2024

(All amounts in thousands of United States Dollars)

See accompanying notes to the financial statements

Note

2024

2023

Unrestricted

Restricted

Total

Grand

Total

Unrestricted

Restricted

Total

Grand

Total

Portfolio

Non

Portfolio

Non

Portfolio

Non

Portfolio

Non

Portfolio

Non

Portfolio

Non

Portfolio

Revenue and Gains

Grant Revenue

Window 1 & 2

6,236

500

Window 3

Bilateral

33,085

27,928

Total Grant Revenue

6,236

33,085

6,236

33,102

39,338

28,428

28,453

Other Income

20.a

1,679

2,488

Total Revenue and Gains

1,696

6,236

33,085

6,236

34,781

41,017

2,513

28,428

30,941

Expenses

Research Expenses

1,452

6,112

24,422

7,564

24,422

31,986

1,063

1,827

21,706

1,063

23,533

24,596

CGIAR Collaborator Expenses

Non - CGIAR Collaborator Expenses

124

3,568

124

3,568

3,692

1,989

General and Administration Expenses

2,949

5,075

8,024

4,671

4,233

8,904

Other Expenses and Losses

20.b

4,479

676

Total Expenses

1,452

7,428

6,236

33,085

7,688

40,513

48,201

1,063

7,174

27,928

1,063

35,102

36,165

Operating Surplus / (Deficit)

(1,452)

(5,732)

(1,452)

(5,732)

(7,184)

(1,063)

(4,661)

500

(1,063)

(4,162)

(5,224)

Finance Income

20.c

459

725

Finance Expenses

20.d

(10)

Operating Surplus / (Deficit)

(1,452)

(5,273)

(1,452)

(5,273)

(6,725)

(1,063)

(3,946)

500

(1,063)

(3,446)

(4,509)

Other Comprehensive Income

Items that will not be reclassified

subsequently to Statement of Activities

Actuarial gain/loss defined benefit plan

125

626

Items that will be reclassified subsequently

to Statement of Activities

MTM gain on bonds

(92)

Revaluation of Property

Changes in revaluation surplus

11,338

Total Other Comprehensive Income

173

11,872

Total Comprehensive Surplus / (Deficit)

(1,452)

(5,100)

(1,452)

(5,100)

(6,552)

(1,063)

7,926

500

(1,063)

8,426

7,363

Ramkumar Ramaswamy

Director Corporate Services

Himanshu Pathak

Director General

9 | ICRISAT Financial Statements 2024

International Crops Research Institute for the Semi-Arid Tropics

Statement of Changes in Net Assets for the Year Ended December 31, 2024

(All amounts in thousands of United States Dollars)

Unrestricted

Other Comprehensive Income

Restricted

Total

Undesignated

Designated

Total

Fair value

Reserve

Revaluation

reserve

Actuarial

gain/(loss)

Property, Plant

and Equipment

Capital

Fund*

Crisis

Management

Fund

Total

Balance as at January 1, 2023

483

7,283

12,830

1,000

21,113

21,596

821

3,261

6,146

31,824

Operating Deficit for the year

(4,508)

Actuarial gain on defined benefit plan

626

MTM gain on bonds

(92)

Revaluation gain recognized on PPE

11,338

Depreciation for the year

(880)

880

Additions during the year

(66)

Balance as at December 31, 2023

(4,025)

6,469

13,644

1,000

21,113

17,088

729

11,338

3,887

6,146

39,188

Balance as at January 1, 2024

(4,025)

6,469

13,644

1,000

21,113

17,088

729

11,338

3,887

6,146

39,188

Operating Deficit for the year

(6,725)

Actuarial gain on defined benefit plan

125

MTM gain on bonds

Depreciation for the year

(809)

809

Additions during the year

(64)

Balance as at December 31, 2024

(10,750)

5,724

14,389

1,000

21,113

10,363

777

11,338

4,012

6,146

32,636

* Reserve for acquisition of Property, Plant and Equipment

See accompanying notes to the financial statements

Ramkumar Ramaswamy

Director Corporate Services

Himanshu Pathak

Director General

ICRISAT Financial Statements 2024 | 10

International Crops Research Institute for the Semi-Arid Tropics

Statement of Cash Flows for the Year Ended December 31, 2024

(All amounts in thousands of United States Dollars)

2024

2023

Cash Flows from Operating Activities

Deficit for the year

(6,725)

(4,508)

Adjustments for

Depreciation

1,329

1,347

Provision for doubtful receivables of donors and others (net)

3,198

427

Loss due to assets written off

158

Provisions no longer required, written back

(141)

(1,040)

Finance income (net of Finance expenses)

(459)

(735)

Operating Deficit before working capital changes

(2,640)

(4,509)

Decrease/(increase) in assets

Receivables

Donors

1,100

(3,283)

Employees

(18)

Other CGIAR Centers

(206)

(114)

Others

3,411

1,053

Inventories

Prepaid expenses

(20)

Other Assets

447

385

Increase/(decrease) in liabilities

Deferred income from Donors

(3,262)

2,886

Employees

(22)

(92)

Other CGIAR Centers

316

(678)

Others

(276)

1,107

Accruals and Provisions

551

Net cash used in operating activities

(1,013)

(2,639)

Cash Flows from Investing Activities

Purchase of investment

Proceeds from maturity and sale of Investments

903

Finance income (net of Finance expenses)

459

734

Acquisition of property, plant and equipment

(417)

(517)

Net cash from investing activities

133

1,120

Net decrease in cash and cash equivalents

(882)

(1,519)

Cash and cash equivalents, beginning of year

4,676

6,195

Net Exchange rate differences

(7)

Cash and cash equivalents at the end of the year

3,787

4,676

Ramkumar Ramaswamy

Director Corporate Services

Himanshu Pathak

Director General

11 | ICRISAT Financial Statements 2024

International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)

Notes to the Financial Statements

1. Corporate Information

a. General Information and nature of operations

The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) or (“the Institute”) is a non-profit,

international organization that conducts agricultural research for development in sub-Saharan Africa and

Asia with a wide array of partners throughout the world. It was established on 28 March 1972 by virtue of an

agreement between the Government of India and CGIAR. ICRISAT helps empower smallholder farmers overcome

poverty, hunger and malnutrition, by making agriculture profitable and sustainable. ICRISAT achieves this

through scientific advancements and working in partnership.

ICRISAT is headquartered in Patancheru, Telangana, India, with two regional hubs and seven country offices in

sub-Saharan Africa.

Owing to its international status and based on the arrangements with the host country governments, ICRISAT

operates under a general immunity from local laws, taxes and customs duties and is covered under United

Nations (Privileges and Immunities) Act, 1947. Its activities are supported through grants by donor nations,

World Bank and foundations.

b. CGIAR Research Program

In 2011, the CGIAR Consortium introduced a new program-based approach to fund research activities. Donors

to the CGIAR, represented by the Fund Council, approved the creation of CGIAR Research Programs (CRPs). Each

CRP is led by a designated CGIAR Center (Lead Center), which is responsible, through a Program Implementation

Agreement (PIA), for overseeing the implementation of the CRP by program partners. Partners include other

CGIAR Centers and institutions who are subcontracted by the Lead Center through a Program Participant

Agreement (PPA) or other suitable contracting arrangement.

ICRISAT is the Lead Center for the CRPs on Grain Legumes and Dryland Cereals, effective 1 January 2018 till 31

December 2021.

Fund donors may designate their contribution to one or more of the three funding ‘Windows’. For ‘Window

1’ funds, the Fund Council sets the overall priorities and makes specific decisions such as allocation to CRPs,

payment of system costs and any other use required to achieve the CGIAR mission. ‘Window 2’ funds are

contributions designated by Fund Donors to one or more CRPs. ‘Window 3’ funds are contributions designated

by the Fund donors to individual centers.

c. Statement of compliance responsibility

The financial statements of the Institute have been prepared in accordance with International Financial

Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

The financial statements were authorized for issue in accordance with the resolution of Governing Board on May 01, 2024.

d. Basis of preparation of financial statements

The financial statements are prepared in accordance with the historical cost convention, except for certain items

(e.g. class of Property, Plant and Equipment) that is measured at fair values, as explained in the accounting policies.

Fair Value is the price that would be received to an asset or paid to transfer a in an orderly transaction between

market participants at the measurement date, regardless of whether that price is directly observable or estimated

using another valuation technique. In estimating the fair value of an asset or a liability, the Institute takes into

account the characteristics of the asset or liability if market participants would take those characteristics into account

when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes

in these financial Information is determined on such a basis except value use In Ind AS 36 — Impairment of Assets.

ICRISAT Financial Statements 2024 | 12

e. Functional and presentation currency

The functional and presentation currency of the Institute is United States Dollar (USD), as statutory

contributions and operational expenditure are primarily denominated in, and influenced by, the United States

Dollar. The operations of the Institute are not concentrated in one economic environment, but grants are

primarily received in United States Dollar, and expenditure is budgeted and managed in United States Dollar.

2. Summary of significant accounting policies

a. Current Vs non-current classification

ICRISAT presents assets and liabilities in the statement of financial position based on current/non - current

classification. An asset is treated as current when it is:

●

Expected to be realized or intended to be sold or consumed in normal operating cycle

●

Held primarily for the purpose of trading

●

Expected to be realized within twelve months after the reporting period or

●

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least

twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

●

It is expected to be settled in normal operating cycle

●

It is held primarily for the purpose of trading

●

It is due to be settled within twelve months after the reporting period or

●

There is no unconditional right to defer the settlement of the liability for at least twelve months after

the reporting period

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash

and cash equivalents. The Institute has identified twelve months as its operating cycle.

b. Foreign exchange transactions

Transactions and balances

Transactions in foreign currency are initially recorded by the Institute at its functional currency spot rates at the date

of the transactions first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies

are translated at the functional currency spot rates of exchange at the reporting date. Foreign non-monetary assets

and liabilities denominated in currencies other than the US Dollar are converted to the US Dollar at exchange rate

prevailing on the date of the transaction. The revenues and expenses of two regional hubs and seven country offices

in sub-Saharan Africa are translated to US Dollar at rates prevailing on the dates of the transactions and are included

in the Statement of Activities of the Institute.

Exchange differences arising on settlement of foreign currency transactions, forward contracts, and

translations at the balance sheet date are recognized as expense or income, as the case may be, in the

Statement of Activities for the year.

c. Fair value measurement:

The Institute measures financial instruments, such as, derivatives at fair value at each reporting date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The fair value measurement is based on the presumption

that the transaction to sell the asset or transfer the liability takes place either:

13 | ICRISAT Financial Statements 2024

●

In the principal market for the asset or liability, or

●

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Institute.

The fair value of an asset or a liability is measured using the assumptions that market participants would use

when pricing the asset or liability, assuming that market participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate

economic benefits by using the asset in its highest and best use or by selling it to another market participant

that would use the asset in its highest and best use.

The Institute uses valuation techniques that are appropriate in the circumstances and for which sufficient data

are available to measure fair value, maximizing the use of relevant observable inputs and minimising the use

of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are

categorized within the fair value hierarchy, described as follows, based on the lowest level input that is

significant to the fair value measurement as a whole:

●

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities

●

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable

●

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value

measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Institute

determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization

(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of

each reporting period.

In estimating the fair value of an asset or a liability, the Institute uses market-observable data to the extent

it is available. Any change in the fair value of each asset and liability is also compared with relevant external

sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Institute has determined classes of assets and liabilities on the

basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as

explained above.

d. Cash and cash equivalent

Cash and cash equivalents comprises cash on hand, cash at banks and short term highly liquid investments

that are readily convertible into known amounts of cash with an original maturity of three months or less and

which are subject to an insignificant risk of changes in value.

e. Revenue recognition

Restricted grants are recognized when the conditions attached to the grant are fulfilled and/or as per the

terms of the underlying contract / agreement satisfying a performance obligation by transferring a promised

good or service. Restricted grant contract terms can be based on a reimbursements method (the Institute is

paid after the expenses are incurred and other conditions met) or the advanced method (donors pay a lump

sum amount at the beginning of the project implementation). Cash received in advance in the context of the

grant is recorded as a liability (deferred income from donors) until criteria for revenue recognition are met.

When expenditure is incurred, grant revenue is recognized to the extent that there is reasonable assurance

that a donor will reimburse the Institute for the expenditure incurred. The resulting receivable is classified as

“Receivables from donors”.

ICRISAT Financial Statements 2024 | 14

IFRS 15 “Revenue from Contracts with Customers” offers additional clarification in the systematic basis of

measurement of revenue over the periods in which there is partial fulfilment of the obligation or condition

attached to the grant/contract using output method and input method. The Institute uses input method to

recognize its restricted grant revenue.

Restricted grants (Portfolio and Non Portfolio) which may be pledged for more than a year, are recognised as

revenue only to the extent, grant conditions have been met. Revenue includes grants made in the capacity of

a Lead Center to other participating CGIAR Centers.

Unrestricted grants are those received from unconditional transfers of cash or assets to the Institute. These

grants are pledged on an annual basis and are recognised as revenue in the year for which grant is pledged.

Grants received in currencies other than USD are recorded at exchange rates in effect at the time of receipt or

if outstanding as of 31 December, at the exchange rate in effect at the year-end rate.

Grants in kind are recognised as revenue based on communication from donor, specifying the amount of

expenditure towards relevant restricted projects.

Portfolio means CRP’s approved by The CGIAR and Non-Portfolio represents the programs other than the

approved CRP.

IFRS 15 establishes a single comprehensive model for entities to use in accounting for revenue.

Under IFRS 15, the Institute recognizes revenue when contractual performance obligations are satisfied e.g.

restricted grant revenues are recognized only to the extent of expenses incurred for the grant.

When applying IFRS 15, the Institute recognized revenue by applying the prescribed steps:

Step 1: Identify the contract with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the entity satisfies a performance obligation

Interests, losses and gains relating to financial instruments are reported in the Statement of Activities as

expense or revenue. Interest is recorded using the effective rate method which discounts accurately future

flows of payments and cash receipts over the expected life of the financial asset, or a shorter duration,

as applicable, with respect to the net carrying amount of the financial asset. Dividend on investments is

recognised when the right to receive dividend is established.

f. Leases

The Institute evaluates if an arrangement qualifies to be a lease as per the requirements of IFRS 16.

Identification of a lease requires significant judgment. A contract is, or contains, a lease if the contract

conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The determination of whether an arrangement is (or contains) a lease is based on the substance of the

arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the

arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use

the asset or assets, even if that right is not explicitly specified in an arrangement.

Institute as a lessee

The Institute assesses whether a contract contains a lease, at inception of a contract. A contract is, or

contains, a lease if the contract conveys the right to control the use of an identified asset for a period of

time in exchange for consideration. To assess whether a contract conveys the right to control the use of an

identified asset, the Institute assesses whether: (i) the contract involves the use of an identified asset (ii) the

Institute has substantially all of the economic benefits from use of the asset through the period of the lease

and (iii) the Institute has the right to direct the use of the asset. The Institute uses significant judgement in

15 | ICRISAT Financial Statements 2024

assessing the lease term (including anticipated renewals) and the applicable discount rate. The determination

of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the

inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent

on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if

that right is not explicitly specified in an arrangement.

At the date of commencement of the lease, the Institute recognizes a right-of-use asset (“ROU”) and a

corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of

twelve months or less (short-term leases) and low value leases. For these short-term and low value leases,

the Institute recognizes the lease payments as an operating expense on a straight-line basis over the term of

the lease. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the

lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus

any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated

depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on

a straight-line basis over the lease term and useful life of the underlying asset. The lease liability is initially

measured at amortized cost at the present value of the future lease payments. The lease payments are

discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental

borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a

corresponding adjustment to the related right of use asset if the Institute changes its assessment if whether it

will exercise an extension or a termination option. Lease liability and ROU asset will be separately presented in

the Balance Sheet and lease payments will be classified as financing cash flows for future leases.

Institute as a lessor

Leases in which the Institute does not transfer substantially all the risks and rewards of ownership of an asset

are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis

over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating

lease are added to the carrying amount of the leased asset and recognised over the lease term on the same

basis as rental income. Leases are classified as finance leases when substantially all of the risks and rewards

of ownership transfer from the Institute to the lessee. Amounts due from lessees under finance leases are

recorded as receivables at the Institute’s net investment in the leases. Finance lease income is allocated to

accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in

respect of the lease.

g. Property, plant and equipment

Property, plant and equipment are tangible goods that are held for use related to the main objective of the Institute,

including research activities and administrative and technical support activities, and are expected to be used during

more than one accounting period.

The in-trust contract signed with the Government of India for the land on which ICRISAT has its headquarters

is for a period of 99 years. If the Institute terminates contract, ICRISAT has to return the land with its

improvements, buildings and installations, free of any kind of judicial actions or embargoes and without

receiving any compensation. This land is recognized at a nominal value and considered as a contribution to

property, plant and equipment.

Property, plant and equipment except Land and Building are stated at cost, net of accumulated depreciation and/or

accumulated impairment losses, if any. The cost includes expenditures that are directly attributable to property plant

and equipment if recognition criteria are met. Likewise, when a major inspection is performed, its costs are recognised

in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. Subsequent

expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future

benefits from the existing asset beyond its previously assessed standard of performance or extends its estimated useful

life. All other repairs and maintenance costs are recognised in Statement of Activities as incurred.

ICRISAT Financial Statements 2024 | 16

The Institute’s assets, namely, Land is carried at a revalued amount, being the fair value on such revaluation

less accumulated depreciation and accumulated impairment losses if any. Other assets, namely, Buildings, Lab

and Scientific Equipments, Heavy Duty Equipment, Furniture and Office Equipment, Computers and Vehicles

are stated at cost of acquisition less accumulated depreciation and impairment, if any.

For the class of asset carried at Fair Value, valuation is being reviewed on periodic basis.

Over the projected useful life of the assets, depreciation will be provided on a pro-rata basis using the

straight line method. Deduction from the asset’s estimated salvage value serves as the basis for calculating

depreciation. At least once a year, the depreciation period and depreciation method are reviewed.

As soon as the asset is put to use, depreciation begins. The asset must be designated as being held for sale

or derecognized before depreciation can stop, whichever comes first. In the Statement of Activities, the

depreciation charge for each period is noted.

The estimated useful life of assets are as follows:

Asset category

Estimated useful life (Years)

Physical Facilities

Laboratory and Scientific equipment

Furniture and office equipment

Heavy duty equipment

Vehicles

Computers

All individual items costing USD 3,000 and above are capitalized.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet

date are shown as capital advances under other receivables and the cost of Property, Plant and Equipment not

ready for their intended use before such date are disclosed under capital work-in-progress.

Property, plant and equipment are assessed for impairment whenever there is an indication that the asset

may be impaired. Impairment on property, plant and equipment is reviewed at least at the end of each

reporting period.

The residual values, useful life and methods of depreciation of property, plant and equipment are reviewed at

each year end and adjusted prospectively, if appropriate.

h. Non-current assets held for sale

Non‑current assets (and disposal groups) classified as held for sale are measured at the lower of carrying

amount and fair value less costs to sell.

i. Inventories

Inventories are valued at the lower of cost and net realisable value, wherever determinable. Inventories

comprise office, laboratory and farm supplies, automobiles and maintenance spares, fuel and lubricants.

These are stated at cost, net of allowances for slow moving, obsolete and damaged stocks. Cost is determined

on weighted average basis. Cost of inventories comprises all cost of purchase, cost of conversion and other

costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of

completion and the estimated costs necessary to make the sale.

17 | ICRISAT Financial Statements 2024

j. Financial Instruments:

Recognition of Financial Instruments:

Financial assets and financial liabilities are recognised when the Institute becomes a party to the contractual

provisions of the financial instruments.

Loans & advances and all other regular way purchases or sales of financial assets are recognised and

derecognised on the trade date. Regular way purchases or sales are purchases or sales of financial assets that

require delivery of assets within the time frame established by regulation or convention in the marketplace.

Initial Measurement of Financial Instruments:

Financial assets and financial liabilities are initially measured at fair value.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial

liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from their

respective fair value on initial recognition. Transaction costs directly attributable to the acquisition of financial

assets or financial liabilities at FVTPL are recognised immediately in Statement of Activities.

All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair

value, depending on the classification of the financial assets.

Subsequent measurement:

Financial Assets:

(i) Financial Assets carried at Amortised cost:

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold

the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise

on specified dates to cash flows that are solely payments of principal and interest on the principal amount

outstanding.

(ii) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by

both collecting contractual cash flows and selling financial assets and the contractual terms of the financial

asset give rise on specified dates to cash flows that are solely payments of principal and interest on the

principal amount outstanding.

(iii) Financial Assets at Fair Value through Profit or Loss (FVTPL):

A financial asset which is not classified in any of the above categories are measured at FVTPL.

A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may

be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a

measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising

the gains and losses on them on different bases.

The Institute has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or

losses arising on remeasurement recognised in Statement of Activities. The net gain or loss recognised in

Statement of Activities incorporates any dividend or interest earned on the financial asset and is included in

the ‘Other Revenue and gains’ line item.

(iv) Effective Interest Method:

The effective interest method is a method of calculating the amortized cost of a debt instrument and of

allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts

ICRISAT Financial Statements 2024 | 18

estimated future cash receipts (including all fees that form an integral part of the effective interest rate,

transaction costs and premiums or discounts) through the expected life of the instrument, or, where appropriate,

a shorter period, to the net carrying amount on initial recognition.

(v) Impairment of Financial Assets:

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each

reporting period. Prior to January 1, 2018, financial assets are considered to be impaired when there is objective

evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset,

the estimated future cash flows of the financial assets have been affected.

For all other financial assets, objective evidence of impairment could include:

●

Significant financial difficulty of the issuer or counterparty; or

●

Breach of contract, such as a default or delinquency in interest or principal payments; or

●

It becoming probable that the borrower will enter bankruptcy or financial re-organization; or

●

The disappearance of an active market for that financial asset because of financial difficulties.

Impairment of financial assets is based on IFRS 9 expected credit loss (ECL) model as opposed to an incurred

loss model under IAS 39. The ECL model requires the Institute to account for expected credit losses and

changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial

recognition of the financial assets.

For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference

between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the

financial asset’s original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with

the exception of accounts receivables, where the carrying amount is reduced through the use of an allowance

account. When an accounts receivable is considered uncollectible, it is written off against the allowance account.

Subsequent recoveries of amounts previously written off are debited against the allowance account. Changes

in the carrying amount of the allowance account are recognized in the Statement of Activities. Lifetime ECL

represents the ECL that will result from all possible default events over the expected life of a financial asset. In

contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a

financial asset that are possible within 12 months after the end of the reporting period.

a. Write-off policy

The Institute writes off a financial asset when there is information indicating that the donors is in severe

financial difficulty and there is no realistic prospect of recovery. Any recoveries made are recognized in the

Statement of Activities.

b. Measurement and recognition of ECL

The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the

loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given

default is based on historical data adjusted by forward-looking information as described above. As for the exposure

at default, for financial assets, this is represented by the assets’ gross carrying amount at the end of the reporting

period. For financial assets, the expected credit loss is estimated as the difference between all contractual cash

flows that are due to the Institute in accordance with the contract and all the cash flows that the Institute expects to

receive, discounted at the original effective interest rate. The Institute recognizes an impairment gain or loss in the

Statement of Activities for all financial assets with a corresponding adjustment to their carrying amount through a

loss allowance account.

(vi) Derecognition of Financial Assets:

The Institute derecognizes a financial asset when the contractual rights to the cash flows from the asset

expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the

asset to another party.

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