2: Material Accounting Policies
2.1 Basis of accounting and preparation
The financial statements of the Company for the
year ended March 31, 2025, have been prepared in
accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time)
and presentation requirements of Division II of Schedule
III to the Companies Act, 2013, (Ind AS compliant
Schedule III). The Company has prepared the financial
statements on the basis that it will continue to operate as
a going concern. The Directors consider that there are
no material uncertainties that may cast doubt significant
doubt over this assumption. They have formed a
judgement that there is a reasonable expectation that
the Company has adequate resources to continue in
operational existence for the foreseeable future.
The financial statements have been prepared on
historical cost basis, except for certain financial assets
and liabilities, which are measured at fair value, based
on their classification. (refer accounting policy 2.2 (o) on
financial instruments).
The Financial statements are presented in Indian
rupees (“'”) and all values are rounded to the nearest
lakh, except when otherwise indicated.
a Business Combinations
Business combinations are accounted for using the
acquisition method. The consideration transferred
in a business combination is measured at fair value,
which is calculated as the sum of the acquisition
date fair values of the assets transferred by the
Company, liabilities incurred by the Company to
the former owners of the acquiree and the equity
interests issued by the Company in exchange of
control of the acquiree. Acquisition related costs are
generally recognized in profit or loss as incurred.
At the acquisition date, the identifiable assets
acquired and the liabilities assumed are recognized
at their fair value, expect that:
a. Deferred tax assets or liabilities and assets
or liabilities related to employee benefit
arrangements are recognized and measured in
accordance with Ind AS 12 Income Taxes and
Ind AS 19 - Employee Benefits respectively.
b. Assets (or disposal Company's) that are
classified as held for sale in accordance with
Ind AS 105 Non Current Assets Held for Sale
and Discontinued Operations are measured
in accordance with that Standard.
c. Potential tax effects of temporary differences
and carry forwards of an acquiree that exist
at the acquisition date or arise as a result of
the acquisition are accounted in accordance
with Ind AS 12.
d. Liabilities or equity instruments related to
share based payment arrangements of
the acquiree or share - based payments
arrangements of the Company entered into to
replace share-based payment arrangements
of the acquiree are measured in accordance
with Ind AS 102 Share-based Payments at the
acquisition date
e. Reacquired rights are measured at a value
determined on the basis of the remaining
contractual term of the related contract.
Such valuation does not consider potential
renewal of the reacquired right.
Goodwill is measured as the excess of the sum of
the consideration transferred, the amount of any
non- controlling interests in the acquire, and the
fair value of the acquirer's previously held equity
interest in the acquire (if any) over the net of the
acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed.
When the Company acquires a business, it
assesses the financial assets and liabilities
assumed for appropriate classification and
designation in accordance with the contractual
terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes
the separation of embedded derivatives in host
contracts by the acquiree.
If the business combination is achieved in stages,
any previously held equity interest is re-measured
at its acquisition date fair value and any resulting
gain or loss is recognised in profit or loss or OCI,
as appropriate.
Any contingent consideration to be transferred
by the acquirer is recognised at fair value at
the acquisition date. Contingent consideration
classified as an asset or liability that is a financial
instrument and within the scope of Ind AS 109
Financial Instruments, is measured at fair value with
changes in fair value recognised in profit or loss
in accordance with Ind AS 109. If the contingent
consideration is not within the scope of Ind AS 109,
it is measured in accordance with the appropriate
Ind AS and shall be recognised in profit or loss.
Contingent consideration that is classified as
equity is not re-measured at subsequent reporting
dates and subsequent its settlement is accounted
for within equity.
Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred and the amount recognised for
non-controlling interests, and any previous
interest held, over the net identifiable assets
acquired and liabilities assumed. If the fair value
of the net assets acquired is in excess of the
aggregate consideration transferred, the Company
re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities
assumed and reviews the procedures used to
measure the amounts to be recognised at the
acquisition date. If the reassessment still results in
an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then
the gain is recognised in OCI and accumulated in
equity as capital reserve. However, if there is no
clear evidence of bargain purchase, the entity
recognises the gain directly in equity as capital
reserve, without routing the same through OCI.
After initial recognition, goodwill is measured at
cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill
acquired in a business combination is, from the
acquisition date, allocated to each of the Company's
cash-generating units that are expected to benefit
from the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned
to those units.
A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised
in profit or loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods.
Where goodwill has been allocated to a
cash-generating unit and part of the operation within
that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying
amount of the operation when determining the gain
or loss on disposal. Goodwill disposed in these
circumstances is measured based on the relative
values of the disposed operation and the portion of
the cash-generating unit retained.
If the initial accounting for a business combination
is incomplete by the end of the reporting period
in which the combination occurs, the Company
reports provisional amounts for the items for which
the accounting is incomplete. Those provisional
amounts are adjusted through goodwill during
the measurement period, or additional assets or
liabilities are recognised, to reflect new information
obtained about facts and circumstances that
existed at the acquisition date that, if known, would
have affected the amounts recognized at that date.
These adjustments are called as measurement
period adjustments. The measurement period does
not exceed one year from the acquisition date.
b Current versus non-current classification
The Company presents assets and liabilities
in the balance sheet based on current/
non-current classification. An asset is treated as
current when it is:
i. Expected to be realised or intended to be
sold or consumed in normal operating cycle
ii. Held primarily for the purpose of trading
iii. Expected to be realised within twelve months
after the reporting period, or
iv 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:
i. It is expected to be settled in normal
operating cycle
ii. It is held primarily for the purpose of trading
iii. I t is due to be settled within twelve months
after the reporting period,
iv. There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period
The Company classifies all other liabilities
as non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents.
The Company has identified twelve months as its
operating cycle.
c Foreign currencies
The Company's financial statements are presented
in ', which is also the Company's functional currency.
I ncome and expenses in foreign currencies are
recorded at exchange rates prevailing on the date
of the transaction.
Foreign currency denominated monetary assets
and liabilities are translated at the exchange rate
prevailing on the reporting date and exchange
gains and losses arising on settlement and
restatement are recognised in the statement of
profit and loss.
Non-monetary assets and liabilities that are
measured in terms of historical cost in foreign
currencies are not retranslated.
d Fair value measurement
The Company measures financial instruments
such as current investment at fair value at each
balance sheet 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:
- 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 Company.
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
economic best 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 Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising 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 categorised 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
Company determines whether transfers have
occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.
The Company determines the policies and
procedures for both recurring fair value
measurement, such as unquoted financial assets
measured at fair value.
External valuers are involved for valuation of
significant assets and liabilities, such as financial
assets, and significant liabilities. Involvement of
external valuers is decided upon annually by the
Company management. Selection criteria include
market knowledge, reputation, independence and
whether professional standards are maintained.
The Company management decides with the
Company's external valuers, which valuation
techniques and inputs to use for each case.
At each reporting date, the Company management
analyses the movements in the values of assets
and liabilities which are required to be remeasured
or re-assessed as per the Company's accounting
policies. For this analysis, the Company
management verifies the major inputs applied in
the latest valuation by agreeing the information in
the valuation computation to contracts and other
relevant documents.
The Company management also compares the
change in the fair value of each asset and liability
with relevant external sources to determine whether
the change is reasonable.
The Company management present the valuation
results to the Board of Directors and the Company's
independent auditors. This includes a discussion
of the major assumptions used in the valuations.
For the purpose of fair value disclosures, the
Company 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.
e Revenue from Operations (Revenue from Contract
with Customers)
Revenue from contracts with customers is
recognised when services are delivered to
the customer at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.
The Company has generally concluded that it is
the principal in its revenue arrangements because
it typically controls when services are being
delivered to the customer.
Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration, if any) allocated
to that performance obligation. The transaction
price of goods sold and services rendered is net of
variable consideration, if any, on account of various
discounts and schemes offered by the Company as
part of the contract. Payment is generally received
on successful completion of services
Rendering of services:
i) Website services and fees: Includes the
following:
a) Advertisement income : pertains to
revenue generated from the display ads
on company websites. The performance
obligation is satisfied upon display of the
advertisement, net commissions if any.
b) Lead generation revenue: pertains to fees
for leads shared with and / or concluded
for customers, ie lead generation, is
recognized on the successful generation
and delivery of the lead as the customer
simultaneously receives and consumes
the benefits provided by the Company.
c) Managed solutions: Revenue from
events, marketing, multimedia and digital
services are recognised on rendering of
services (point in time).
ii) Commission and related incomes:
The Company facilitates auctions of vehicles
via its online and offline platforms and
provides incidental ancillary services such
as valuation, inspection and registration.
Revenue is recognised upon rendering of
service (point in time) as per terms of contract
on accrual basis.
iii) Other operating Income : pertains to loan given
to used car dealer. Revenue is recognised
once loan is disbursed to used car
Variable consideration
If the consideration in a contract includes a
variable amount, the Company estimates the
amount of consideration to which it will be entitled
in exchange for transferring the goods to the
customer. The variable consideration is estimated
at contract inception and constrained until it is
highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised
will not occur when the associated uncertainty
with the variable consideration is subsequently
resolved. Some of the contracts with customer
provide a right to customer of cash rebate/discount
if payment is cleared within specified due dates.
- Trade receivables
A receivable represents the Company's
right to an amount of consideration that
is unconditional (i.e., only the passage
of time is required before payment of the
consideration is due). Refer to accounting
policies of financial assets in section (o)
Financial instruments - initial recognition and
subsequent measurement.
- Contract Assets
A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is
recognised for the earned consideration that
is conditional.
Contract assets are initially recognised for
revenue earned from advertisement and
lead revenue. Upon completion of the entire
contract, the amounts recognised as contract
assets are reclassified to trade receivables.
- Contract liabilities
A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods
or services to the customer, a contract
liability is recognised when the payment is
made or the payment is due (whichever is
earlier). Contract liabilities are recognised
as revenue when the Company performs
under the contract.
f Other income
a) Dividend from investments are recognised
when the right to receive payment is
established and no significant uncertainty as
to collectability exists.
b) Interest income is recognized on time
proportion basis taking into account the
amount outstanding and the rate applicable
for all financial instruments measured at
amortised cost and other interest-bearing
financial assets, interest income is recorded
using the effective interest rate (EIR). EIR is the
rate that exactly discounts the estimated future
cash receipts over the expected life of the
financial instrument or a shorter period, where
appropriate, to the gross carrying amount
of the financial asset. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument
(for example, prepayment, extension, call
and similar options) but does not consider
the expected credit losses. Interest income is
included in other income in the statement of
profit or loss.
c) For gains on fair valuation of financial
instruments through Profit & Loss, refer to the
accounting policy in 2.2 o.
g Leases
The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.
Company as a lessee
The Company applies a single recognition and
measurement approach for all leases, except
for short-term leases and leases of low-value
assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use).It Includes office premises taken
on rent. Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount
of lease liabilities recognised, initial direct
costs incurred, and lease payments made at
or before the commencement date less any
lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over
the shorter of the lease term and the estimated
useful lives of the assets.
The right-of-use assets are also subject to
impairment. The estimated useful lives of the
assets is 3 to 5 years.
i) Lease Liabilities
At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease
term. The lease payments include fixed
payments (including in substance fixed
payments) less any lease incentives
receivable, variable lease payments
that depend on an index or a rate, and
amounts expected to be paid under
residual value guarantees. The lease
payments also include the exercise price
of a purchase option reasonably certain
to be exercised by the Company and
payments of penalties for terminating
the lease, if the lease term reflects
the Company exercising the option to
terminate. Variable lease payments that
do not depend on an index or a rate are
recognised as expenses (unless they are
incurred to produce inventories) in the
period in which the event or condition
that triggers the payment occurs.
In calculating the present value of
lease payments, the Company uses
its incremental borrowing rate at the
lease commencement date because
the interest rate implicit in the lease
is not readily determinable. After the
commencement date, the amount of
lease liabilities is increased to reflect
the accretion of interest and reduced for
the lease payments made. In addition,
the carrying amount of lease liabilities
is remeasured if there is a modification,
a change in the lease term, a change
in the lease payments (e.g., changes to
future payments resulting from a change
in an index or rate used to determine
such lease payments) or a change in the
assessment of an option to purchase the
underlying asset.
The Company applies the short-term
lease recognition exemption to its
short-term leases of machinery and
equipment (i.e., those leases that have a
lease term of 12 months or less from the
commencement date and do not contain
a purchase option). It also applies the
lease of low-value assets recognition
exemption to leases of office equipment
that are considered to be low value.
Lease payments on short-term leases
and leases of low-value assets are
recognised as expense on a straight-line
basis over the lease term.
the carrying amount of lease liabilities is
remeasured if there is a modification, a
change in the lease term, a change in
the lease payments (e.g., changes to
future payments resulting from a change
in an index or rate used to determine
such lease payments) or a change in the
assessment of an option to purchase the
underlying asset.
h Retirement and other employee benefits
i. Short term employee benefits
The undiscounted amount of short term
employee benefits expected to be paid in
exchange for services rendered by employees
is recognised during the period when the
employee renders the service. These benefits
include compensated absences such as paid
annual leave and performance incentives
payable within twelve months.
ii. Post-employment benefits
Retirement benefit in the form of provident
fund is a defined contribution scheme.
The Company has no obligation, other than
the contribution payable to the provident
fund. The Company recognizes contribution
payable to the provident fund scheme as
an expense, when an employee renders the
related service. If the contribution payable to
the scheme for service received before the
balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme
is recognized as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due for
services received before the balance sheet
date, then excess is recognized as an asset
to the extent that the pre-payment will lead
to, for example, a reduction in future payment
or a cash refund.
The cost of providing benefits under the
defined benefit plan is determined using the
projected unit credit method.
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset
ceiling, excluding amounts included in net
interest on the net defined benefit liability and
the return on plan assets (excluding amounts
included in net interest on the net defined
benefit liability), are recognised immediately
in the balance sheet with a corresponding
debit or credit to retained earnings through
OCI in the period in which they occur.
Remeasurements are not reclassified to profit
or loss in subsequent periods.
Past service costs are recognised in profit or
loss on the earlier of:
i. The date of the plan amendment or
curtailment, and
ii. The date that the Company recognises
related restructuring costs
Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognises the
following changes in the net defined benefit
obligation as an expense in the consolidated
statement of profit and loss:
i. Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and
ii. Net interest expense or income
iii. Other long-term employee benefits
Compensated absences which are not
expected to occur within twelve months after
the end of the period in which the employee
renders the related services are recognised
as a liability at the present value of the defined
benefit obligation at the balance sheet date.
Taxes
i) Current tax
Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date
in the countries where the Company operates
and generates taxable income.
Current income tax relating to items
recognised outside profit or loss is
recognised outside profit or loss (either in
other comprehensive income or in equity).
Current tax items are recognised in correlation
to the underlying transaction either in OCI or
directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation
and considers whether it is probable that a
taxation authority will accept an uncertain
tax treatment. The Company shall reflect the
effect of uncertainty for each uncertain tax
treatment by using either most likely method
or expected value method, depending on
which method predicts better resolution
of the treatment.
ii) Deferred tax
Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax liabilities are recognised for all
taxable temporary differences, except:
i. When the deferred tax liability arises
from the initial recognition of goodwill or
an asset or liability in a transaction that is
not a business combination and, at the
time of the transaction, affects neither the
accounting profit nor taxable profit or loss
ii. In respect of taxable temporary
differences associated with investments
in subsidiaries, associates and interests
in joint ventures, when the timing of the
reversal of the temporary differences can
be controlled and it is probable that the
temporary differences will not reverse in
the foreseeable future
Deferred tax assets are recognised for
all deductible temporary differences,
the carry forward of unused tax credits
and any unused tax losses. Deferred tax
assets are recognised to the extent that
it is probable that taxable profit will be
available against which the deductible
temporary differences, and the carry
forward of unused tax credits and unused
tax losses can be utilised, except:
iii. When the deferred tax asset relating
to the deductible temporary difference
arises from the initial recognition of an
asset or liability in a transaction that is
not a business combination and, at the
time of the transaction, affects neither the
accounting profit nor taxable profit or loss
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred tax assets and liabilities are
measured at the tax rates that are expected
to apply in the year when the asset is realised,
or the liability is settled, based on tax rates
(and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.
j Property Plant and Equipment
Property, Plant and Equipment are stated at cost
net of accumulated depreciation and impairment
losses, if any. Such cost includes the cost of
purchase price / cost of construction, including
non-refundable taxes or levies and any expenses
attributable to bring the assets to its working
condition for its intended use.
Subsequent costs are included in the asset's
carrying amount or recognised as separate
assets, as appropriate, only when it is probable
that the future economic benefits associated with
expenditure will flow to the Company and the cost
of the item can be measured reliably. All other
repairs and maintenance are charged to Statement
of Profit and Loss at the time of incurrence.
Depreciation is provided for Property, Plant and
Equipment so as to expense the cost over its useful
life. The estimated useful lives, residual value and
method of depreciation are reviewed at the end of
each financial year and any change in estimate is
accounted for on a prospective basis.
Depreciation is charged on a pro-rata basis for
Property, Plant and Equipment purchased and sold
during the year. Depreciation is calculated on the
straight-line method as per the estimated useful life
prescribed in Schedule II to the Companies Act,
2013. The residual value of the assets at the end
of life is Nil.
Estimated useful lives of the assets are as follows:
i) Computers - 3 Years / servers - 6 Years
ii) Furniture and Fixtures - 10 Years
iii) Vehicle - 5 Years
iv) Leasehold Improvement - 60 months or lease
period whichever is lower
v) Office equipment - 3 Years
The Company, based on management estimate
supported by internal technical expert,
depreciates office equipment over estimated
useful lives which are different from the useful
life prescribed in Schedule II to the Companies
Act, 2013. The management believes that these
estimated useful lives are realistic and reflect fair
approximation of the period over which the assets
are likely to be used.
Property, plant and equipment and any significant
part initially recognised is derecognised upon
disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset
is derecognised.
The Company has elected to continue with the
carrying value for all of its Property, Plant &
Equipment as recognised in its previous GAAP
financial statements as deemed cost on the
transition date i.e. 01 April 2018.
k Intangible Assets
Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their
fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses. Internally generated intangibles,
excluding capitalised development costs, are
not capitalised and the related expenditure is
reflected in profit or loss in the period in which the
expenditure is incurred.
The useful lives of intangible assets are assessed
as either finite or indefinite.
Intangible assets with finite lives are amortised
over the useful economic life and assessed for
impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible
asset with a finite useful life are reviewed at least
at the end of each reporting period. Changes in
the expected useful life or the expected pattern
of consumption of future economic benefits
embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates.
The amortisation expense on intangible assets with
finite lives is recognised in the statement of profit
and loss unless such expenditure forms part of
carrying value of another asset.
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit
level. The assessment of indefinite life is reviewed
annually to determine whether the indefinite life
continues to be supportable. If not, the change
in useful life from indefinite to finite is made on a
prospective basis.
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 or loss when the asset
is derecognised.
An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal.
Cost of software is amortised over a period 4 years.
The Company has elected to continue with the
carrying value for all of its Intangible assets
as recognised in its previous GAAP financial
statements as deemed cost on the transition date
i.e. 01 April 2018.
l Impairment of non-financial assets
At the end of each reporting period, the Company
reviews the carrying amounts of its tangible
assets, intangible assets and financial guarantee
contracts to determine whether there is any
indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in
order to determine the extent of the impairment
loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset,
the Company estimates the recoverable amount
of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis
of allocation can be identified, corporate assets
are also allocated to individual cash-generating
units, or otherwise they are allocated to the
smallest Company of cash-generating units for
which a reasonable and consistent allocation basis
can be identified.
Recoverable amount is the higher of fair value less
costs of disposal and value in use. In assessing
value in use, the estimated future cash flows
are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset for which the estimates
of future cash flows have not been adjusted.
If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less
than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced
to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
When an impairment loss subsequently
reverses, the carrying amount of the asset (or a
cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the
carrying amount that would have been determined
had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years.
A reversal of an impairment loss is recognised
immediately in profit or loss.
For assets excluding goodwill, an assessment is
made at each reporting date to determine whether
there is an indication that previously recognised
impairment losses no longer exist or have
decreased. If such indication exists, the Company
estimates the asset's or CGU's recoverable amount.
A previously recognised impairment loss is reversed
only if there has been a change in the assumptions
used to determine the asset's recoverable amount
since the last impairment loss was recognised.
The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that
would have been determined, net of depreciation,
had no impairment loss been recognised for the
asset in prior years. Such reversal is recognised
in the statement of profit and loss unless the asset
is carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.
Goodwill is tested for impairment annually at
each reporting date and when circumstances
indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing
the recoverable amount of each CGU (or Company
of CGUs) to which the goodwill relates. When the
recoverable amount of the CGU is less than it's
carrying amount, an impairment loss is recognised.
Impairment losses relating to goodwill cannot be
reversed in future periods.
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