Page 258 - Index

Standalone
5. Goodwill
Particulars As at
December 31, 2024
(C lakh)
As at
December 31, 2023
Carrying value at the beginning of the year 3,621 3,621
Carrying value at the end of the year 3,621 3,621
Goodwill has been allocated in the following CGU's:
Crisil Intelligence - Business Intelligence & Risk Solutions 3,621 3,621
Total 3,621 3,621
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU, which
benefit from the synergies of the acquisition. The chief operating decision maker reviews the goodwill for any
impairment at the CGU 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 Company 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 Company 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. 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.
256 Annual Report 2024