Page 188 - Index

Consolidated
5. Goodwill
Particulars As at
December 31, 2024
(C lakh)
As at
December 31, 2023
Carrying value at the beginning of the year 42,080 37,983
Goodwill on business combination (refer to note 45)
- On acquisition of Peter Lee Associates Pty. Limited - 1,694
- On acquisition of Bridge To India energy private limited - 464
- On purchase price adjustment of Bridge To India Energy Private Limited 54 -
Foreign currency exchange gain 330 1,939
Carrying value at the end of the year 42,464 42,080
Goodwill has been allocated in the following CGU's:
Crisil Integral Q 9,353 9,272
Crisil Coalition Greenwich 28,973 28,724
Crisil Intelligence - Business Intelligence & Risk Solutions 3,621 3,621
Crisil Intelligence - Consulting (Energy) 517 463
Total 42,464 42,080
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or Groups
of CGU’s, which benefit from the synergies of the acquisition. The chief operating decision maker reviews the goodwill
for any impairment at the CGU’s level.
The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use, both of which are
calculated by the Group using a discounted cash flow analysis. These calculations use pre tax cash flow projections over
a period of three years, based on financial budgets approved by the management. For calculation of the recoverable
amount, the Group has used the following rates:
Particulars As at
December 31, 2024
As at
December 31, 2023
Growth rate 5.00% 5.00%
Discount rate 24.70% 19.40%
The above discount rate is based on the weighted average cost of capital of the Company or Group. These estimates
are likely to differ from future actual results of operations and cash flows.
An analysis of sensitivity of the computation to a change in key parameters (growth rate and discount rate) based on
reasonably probable assumptions, did not identify any probable scenario in which recoverable amount of the CGU
would decrease below its carrying amount.
As at December 31, 2024 and December 31, 2023, the estimated recoverable amount of the CGU exceeded its carrying
amount, hence impairment is not triggered.
186 Annual Report 2024