Suryoday Small Finance Bank Limited
Annexure to the Financial Statements for the period ended December 31, 2020

Significant accounting policies (Contd.)

Depreciation is charged over the estimated useful life of the fixed asset on written down value basis from the date asset is put to use
considering residual value of 5% of the cost. Assets individually costing Rs. 5,000 or less are fully depreciated in the year of purchase.
Assets purchased / sold during the year are depreciated on a pro-rata basis for the actual number of days the assets have been put to use.

Depreciation rate used by the Bank are in line with those specified under Schedule II of the Companies Act, 2013.

The details of useful life are as under:

 

 

Class of Assets Estimated useful life
Computers & Accessories 3 years

Office equipment 5 years

Premises 30 years

Furniture and fittings 10 years

Vehicle 8 years

 

 

Leasehold Improvements: Improvements to leasehold premises are amortised over the
primary period of lease or estimated useful life, whichever is lower.

 

 

 

H. Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets such as software are amortized over a period of 36 months or license period whichever is lower on a straight-line basis
with zero residual value.

I. Leases

Operating Lease

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership for the leased term are classified as
operating leases in accordance with Accounting Standard 19, Leases. The office premises are generally rented on cancellable terms or
renewable at the option of both the parties. Computers and tablets are rented on operating lease.

J. Impairment

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 recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is the greater of the asset’s net selling price 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

risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

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