Page 249 - Index

Mission-Critical Decisions, Made with Confidence.
the taxing authorities), and any directly attributable
expenditure on making the asset ready for its
intended use. Intangible assets arising on acquisition
of business are measured at fair value as at date of
acquisition. Subsequent expenditure is capitalised
only if it is probable that the future economic benefits
associated with the expenditure will flow to the
Company. The amortisation expense on intangible
assets with finite life is recognised in the statement
of profit and loss under the head ‘Depreciation and
amortisation expense’.
Expenditure on development eligible for capitalisation
are carried as intangible assets under development
where such assets are not yet ready for their
intended use.
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.
2.6 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 10 Years
Office equipment 3 to 10 Years
Computers 3 Years
Vehicles 3 Years
Customer relationship 4 to 5 Years
Database 5 Years
Platform 5 Years
Software 1 to 3 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.
2.7 Impairment
a) Impairment of 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.
After impairment, depreciation is provided on
the revised carrying amount of the asset over its
remaining useful life.
b) Impairment of financial assets
In accordance with Ind-AS 109, the Company
applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment
loss on the following financial assets and credit
risk exposure:
Annual Report 2024
247
Financial Statements