Fractal Analytics Annual Report 2023-24

Notes to the Consolidated Financial Statements as at and for the year ended March 31, 2024

Notes to the Consolidated Financial Statements as at and for the year ended March 31, 2024

The carrying amount of goodwill allocated to acquisitions are as follows:

Gross carrying amount As at April 01, 2022

56 48

859

885 231

30

102

4

1,936

(in Rupees million)

- -

- -

- -

279

Additions

As at March 31, 2024

As at March 31, 2023

Derecognition on account of loss of control of subsidiary company (Refer note 37) Exchange differences on translating the financial statements of foreign operation

-

(183)

-

(183)

Particulars

Final Mile Consultants Private Limited 4i Consulting Inc (Refer Note 35)

278 221 366 123 182

278 218 362 122 181

3

68

48

-

-

-

119

Senseforth.ai Group

Asper.ai Group

As at March 31, 2023

107

927

981

30

102

4

2,151

Analytics Vidhya Educon Private Limited Neal Analytics Group (Refer Note 35)

Accumulated amortization As at April 01, 2022 Derecognition on account of loss of control of subsidiary company (Refer note 37)

49

68

505

2

4

4

632

2,343 3,513

2,314

-

-

(108)

-

-

-

(108)

Total 3,475 Cash-generating units to which goodwill is allocated are tested for impairment annually at each reporting date, 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 the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to that unit. The Group estimates the value-in-use of the cash generating units (CGUs) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The discount rates used for the CGUs represent the weighted average cost of capital based on the historical market returns of comparable companies. The goodwill amount for respective years (relating to different CGUs individually) has been evaluated based on the cash flow forecasts of the related CGUs over a period of five years and the recoverable amounts of these CGUs exceeded their carrying amounts. An analysis of the sensitivity of the computation to a change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount as on date. The estimated value-in-use of CGUs is based on the future cash flows using 3% to 5% (March 31, 2023 : 3% to 5%) Terminal growth rate and discount rate of 18 % to 30% (March 31, 2023 : 18% to 30%). The discount rate is based on the Weighted Average Cost of Capital (WACC) which represents the weighted average return attributable to all the assets of the Cash Generating Unit (CGU). 6 Other Intangible Assets (in Rupees million)

Charge for the year

13

93

157

6

10

- -

279

Provision for Impairment loss

-

-

84

-

-

84

3

4

28

-

-

-

35

Exchange differences on translating the financial statements of foreign operation

As at March 31, 2023

65 42

165 762

666 315

8

14 88

4

922

Net carrying amount as at March 31, 2023

22

-

1,229

Note 1 : Refer note 16 for details of charge/hypothecation created against intangible assets. Note 2 : The estimated amortisation of intangible assets for the years subsequent to March 31, 2024 is as follows :

Year ending 31 March

in Rupees Million

2025 2026

368 318 670

After 2026

Note 3 : During the previous year the Group had assessed the carrying value of its intangible assets of one of the subsidiary and basis its assessment, the recoverable amount is less than the carrying value and accordingly has provided for impairment loss of C 84 million.

6.1 Intangible assets under development ('IAUD')

(in Rupees million)

Internally generated Intellectual

Particulars

Total

Gross carrying amount As at April 01, 2023

Computer Software

Client relationship

Developed Content

Particulars

Property Brand

Patent

Total

7

Gross carrying amount As at April 01, 2023

Additions

171

107 313

927

981 119

30

102

4

2,151

Less: Capitalisation

(119)

-

- -

- -

-

432

Additions

As at March 31, 2024 Gross carrying amount As at April 01, 2022

59

4

12

9

1

26

Exchange differences on translating the financial statements of foreign operation As at March 31, 2024

299 102

Additions

424

939

1,109

30

102

5

2,609

Less: Capitalisation

(231)

Accumulated amortization As at April 01, 2023

Less : Provision for Impairment in value of IAUD (Refer note below)

(87) (76)

65 42

165

666 170

8 6

14 10

4

922 321

Less : Derecognition of assets on account of Loss of control of subsidiary company (Refer note 37)

Charge for the year Exchange differences on translating the financial statements of foreign operation As at March 31, 2024

93

-

As at March 31, 2023 7 Note 1 : During the previous year the Group has assessed the carrying value of its intangible assets in a subsidiary company and basis its assessment the recoverable amount is less than the carrying value and accordingly has provided for impairment loss of C 4 million. Note 2: Based on the evaluation done by the Group as at March 31,2023, one of the subsidiary company does not foresee commercial operation in near future date, leading to intangible asset under development's recoverable amount to be below its carrying amount and hence 100% impairment provisioning is recognised amounting to C 83 million.

1

3

5

-

-

1

10

108 316

261 678

841 268

14 16

24 78

5

1,253 1,356

Net carrying amount as at March 31, 2024

-

214

215

Fractal Analytics Limited | Annual Report 2023-24

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