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An intangible asset is derecognised upon disposal or
when no future economic benefits are expected from
its use. Gains or losses arising from derecognition of
an intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the statement
of profit and loss when the asset is derecognised.
2.9 Depreciation and amortisation
Based on internal assessment and independent
technical evaluation carried out by external valuers
the management believes that the useful lives as
given below best represent the period over which
management expects to use these assets. Hence in
certain class of assets, the useful lives is different from
the useful lives prescribed under Part C of Schedule II
of the Companies Act, 2013. Depreciation/amortisation
is provided on a straight-line basis so as to expense
the cost less residual value over their estimated
useful lives.
Type of asset Estimated Useful Life
Buildings 20 years
Furniture and fixtures 4 to 16 years
Office equipment 3 to 10 years
Computers 3 years
Vehicles 3 years
Customer relationship Technology 5 years
Brand 8 to 20 years
Database 3 to 5 years
Tradename 7 years
Platform 5 years
Software 1 to 3 years
3 to 12 years
The estimated useful lives of PPE and intangible assets
as well as the depreciation and amortisation period
are reviewed at the end of each financial year and the
depreciation and amortisation method is revised to
reflect the changed pattern, if any.
Leasehold improvements are amortised over the lease
term or useful life of the asset, whichever is lower.
2.10 Impairment
a) Impairment of non-financial assets
(i) Goodwill
Goodwill is tested for impairment on an
annual basis or whenever there is an
indication that goodwill may be impaired.
For goodwill impairment testing, the carrying
176 Annual Report 2024
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amount of the CGUs (including allocated
goodwill) is compared with its recoverable
amount by the Group. The recoverable
amount of a CGU is the higher of its fair value
less cost to sell and its value-in-use. Value-
in-use is the present value of the future
cash flows expected to be derived from
the CGU. Total impairment loss of a CGU is
allocated first to reduce the carrying amount
of goodwill allocated to the CGU and then to
the other assets of the CGU prorata on the
basis of the carrying amount of each asset
in the CGU. An impairment loss on goodwill is
recognised in the statement of profit and loss
and is not reversed in the subsequent period.
(ii) Other non financial assets
The carrying amounts of assets are reviewed
at each balance sheet date if there is any
indication of impairment based on internal/
external factors. An impairment loss is
recognised wherever the carrying amount
of an asset exceeds its recoverable amount
in the statement of profit and loss. An
impairment loss is reversed in the statement
of profit and loss if there has been a change
in the estimates used to determine the
recoverable amount. The carrying amount
of the asset is increased to its revised
recoverable amount, provided that this
amount does not exceed the carrying
amount that would have been determined
(net of any accumulated amortisation or
depreciation) has no impairment loss been
recognised for the asset in the prior years.
An asset’s recoverable amount is the higher
of an asset’s or cash generating unit’s (CGU)
net selling price and its value in use.
The recoverable amount is determined for
an individual asset, unless the asset does
not generate cash inflows that are largely
independent of those from other assets or
groups of assets. Value in use is the present
value of an asset calculated by estimating
its net future value including the disposal
value. In determining net selling price, recent
market transactions are taken into account,
if available. If no such transactions can be
identified, an appropriate valuation model
is used.