Valuation of Intangible Assets, Delhi NCR
Written by the Sapient Services valuation team | Reviewed by Devendra Kumar Malhotra, Registered Valuer under the Companies Act, 2013 | Sapient Services Pvt. Ltd., Okhla, New Delhi | Last updated: October 2026
Valuation of intangible assets puts a supported figure on brands, trademarks, patents, software, customer relationships and contractual rights, for a stated date and purpose. Ind AS 103 makes an acquirer measure acquired intangibles separately from goodwill, so an auditor will want support for that figure. Lenders, licensors and investors ask for the same.
Sapient Services Pvt. Ltd. values intangible assets for companies in Delhi NCR from its Okhla office in New Delhi, India. Each report sets out the purpose, method, main assumptions and limits, so a reviewer can follow the analysis. Tell us what you need valued and by when.
Quick Answer |
Intangible Asset Valuation Explained
Intangible asset valuation puts a number on assets that have no physical form but earn money for a business.
Ind AS 38 defines an intangible asset as an identifiable, non-monetary asset without physical substance. ICAI Valuation Standard 302 and IVS 210 set out how to value one.
Under Ind AS 38, internally generated brands, mastheads, publishing titles and customer lists cannot be recognised as intangible assets on the balance sheet. Buyers, lenders and auditors still need a figure, and what an asset cost to create is a poor guide to what it is worth.
Who Needs Valuation of Intangible Assets in Delhi NCR
Anyone who must put a supported figure on a brand, licence, technology or customer base, from listed companies to MSMEs and startups.
- Acquirers and their auditors, who split the purchase price between identifiable intangibles and goodwill under Ind AS 103 (see purchase price allocation).
- Finance teams running the annual Ind AS 36 test on goodwill and indefinite-life intangibles (see valuation for financial reporting).
- Promoters and deal teams in mergers, demergers, slump sales and NCLT schemes (see mergers and acquisitions advisory in Delhi).
- Brand owners and licensees agreeing a royalty rate, and founders, investors and joint venture partners pricing IP, within the applicable tax and transfer pricing rules.
- Lenders and borrowers where a brand, IP or licence is offered as security and the lender accepts it, and resolution professionals where the Insolvency and Bankruptcy Code, 2016 framework calls for a valuation.
- Owners buying or selling a brand or other IP, and parties that need an independent valuation in an IP or licensing dispute.
A figure with weak support draws auditor queries, and a royalty rate with no benchmark draws the same from the tax side. A late valuation can hold up a closing.
Our Intangible Asset Valuation Process, Step by Step
An engagement has five steps, from the scoping call to the signed report.
- Scoping call: we agree the purpose, valuation date, asset list, applicable standard and who will rely on the report. The first consultation is free.
- Asset identification: we confirm which assets are separable or contract-based and review registrations.
- Data collection: we collect financials, projections and asset-level data against our checklist.
- Analysis and draft: we choose the methods, benchmark royalty and discount rates, run sensitivity tests and send a draft for review.
- Final report: a signed report and a discussion of the findings.
Most engagements take 12 to 20 working days from the date we receive complete documents. We confirm the timeline after the scoping call.
Documents we usually ask for:
- Three to five years of financial statements and management projections
- Registration certificates and renewal status for trademarks, patents and copyrights
- Licence, franchise, royalty and major customer contracts
- Customer-level revenue and churn data
- Transaction documents, if the valuation supports an acquisition
| Get a project estimate: send us the asset list and the purpose of the valuation, and we will tell you what is needed and how long it will take. Contact our team. |
Types of Intangible Assets We Value
We value the assets below, grouped the way valuers usually group them.
| Class | Examples | Usual valuation method |
|---|---|---|
| Marketing-related | Brands, trademarks, trade names, domain names, non-compete agreements | Relief from royalty; with-and-without |
| Technology-based | Patents, software, databases, trade secrets, know-how | Relief from royalty, replacement cost, excess earnings |
| Customer-related | Customer contracts and relationships, order backlog, distribution networks | Multi-period excess earnings |
| Contract-based | Licences, franchise and royalty agreements | Income approach on contract cash flows |
| Goodwill | Price paid above net identifiable assets | Residual in a purchase price allocation |
Where value sits differs by sector:
- Technology: source code, platforms and data
- Pharma: patents and licences
- Consumer businesses: brands and franchise agreements
- Manufacturing: know-how and distribution networks
Brand and Trademark Valuation
Brand valuation rests on pricing power and repeat purchase. A trademark registration protects the name but does not show what the brand earns, so we value the brand by relief from royalty and test the rate against comparable licences.
Patent and IP Valuation
Patent valuation depends on remaining legal life, commercial use, obsolescence risk and the profit the patent protects. Copyrights, know-how and other intellectual property follow the same logic.
Software and Technology Valuation
Software is valued on the income it supports. Where that income cannot be isolated, as with databases and custom-built technology, we use the cost to replace or reproduce it, less obsolescence.
Customer Relationship Valuation
Value depends on how long customers stay and what they contribute once the assets that serve them have been paid for. We forecast the revenue, reduce it for attrition and deduct a charge for each contributing asset.
Goodwill in Purchase Price Allocation
In a purchase price allocation, goodwill is generally the residual after identifiable assets acquired and liabilities assumed are measured at acquisition-date amounts under Ind AS 103, so we value the identifiable assets first. In a business sale it forms part of the overall business value.
How We Approach Valuation of Intangible Assets
Valuers use the income, market or cost approach, and the right choice depends on the asset and the data that exists.
| Approach and method | How it works and where it fits |
|---|---|
| Income: relief from royalty | Estimates the royalty the owner avoids by owning the asset, deducts tax and discounts the savings. Used for brands, patents and software. |
| Income: multi-period excess earnings | Isolates one asset’s cash flows after charging for the assets that help earn them. Used for customer relationships and core technology. |
| Income: with-and-without | Compares cash flows with and without the asset. Used for non-compete agreements. |
| Income: real option pricing | Prices a right to commercialise an asset later. Used for patents or technology that earn nothing yet. |
| Market approach | Comparable transactions and licence or royalty benchmarks, where enough comparable data exists. |
| Cost approach | Replacement or reproduction cost, less obsolescence. Used for software and databases where income cannot be isolated. |
Valuation of intangible assets rarely rests on one method, so we test the primary method against a second. Comparable data is scarce and cash flows are hard to isolate, so the report explains each judgement.
Basis of Value Depends on Purpose
Acquisition accounting under Ind AS 103 uses fair value as Ind AS 113 defines it. Tax, licensing, litigation and internal planning can call for a different basis, so we fix the purpose at the first call.
Inputs That Move the Answer
- Revenue contribution: the share of revenue that comes from the asset
- Royalty rate: selected from available comparable licence evidence and checked against profit margin
- Useful life: economic life, which often differs from legal or tax life
- Customer attrition: based on actual churn data
- Discount rate: reflects the risk of the specific asset
- Tax amortisation benefit: considered where relevant to the purpose, jurisdiction and basis of value
Standards, Law and Tax Rules for Intangible Asset Valuation in India
| Rule | What it governs |
|---|---|
| Ind AS 38, Intangible Assets (IAS 38 under IFRS) | Internally generated brands, mastheads, publishing titles and customer lists cannot be recognised (paragraph 63). |
| Ind AS 103, Business Combinations | Acquired identifiable intangibles are recognised separately from goodwill at acquisition-date fair value. Goodwill is the residual. |
| Ind AS 36 and Ind AS 113 | Ind AS 36 requires an annual impairment test for goodwill and indefinite-life intangibles. Ind AS 113 defines fair value. |
| ICAI Valuation Standards 103 and 302 | Indian standards on methods (103) and intangible assets (302). How far they bind depends on the statute behind the valuation. |
| IVS 210, Intangible Assets | The international standard, in the IVS edition effective 31 January 2025. |
| Companies Act, 2013, Section 247 | A valuation that the Act requires must come from a registered valuer. The Insolvency and Bankruptcy Board of India (IBBI) regulates registered valuers under the 2017 Rules. |
| Income-tax Act, 2025, Section 33 | In force from 1 April 2026. Allows depreciation on specified acquired intangibles: know-how, patents, copyrights, trademarks, licences and franchises. Goodwill is excluded. The prescribed depreciation table gives 25 percent on written-down value for this block, subject to the applicable tax provisions. |
Section 247 and the related rules apply where the Companies Act requires a valuation. Other assignments may follow separate legal, regulatory or contractual requirements, and a lender or counterparty may still ask for a registered valuer’s report. Tax treatment depends on the nature, acquisition and use of the asset and on the tax year, so confirm it with your tax adviser.
What the Valuation Report Contains
The report states what was valued, by which method and on what assumptions.
- The assets valued, who owns them and the valuation date
- The basis of value and the standard followed
- The methods used, with the reasons for choosing them
- Main assumptions, the discount rate build-up and the useful life adopted
- Sensitivity analysis and the conclusion, with limits on who may rely on it
Why Choose Sapient Services for Intangible Asset Valuation
Check these six points with any valuer before you appoint one, and compare the answers.
| What to check | Why it matters | Sapient Services |
|---|---|---|
| Credentials and team | A valuation the Companies Act requires needs a registered valuer | A valuation team with accounting, finance and engineering skills, and the reviewing valuer named at the top of the page |
| Methodology | The method must fit the asset | A primary method chosen for the asset and checked against a second |
| Reporting | Reviewers must be able to follow the analysis | Purpose, method, assumptions, sensitivity and limits stated |
| Turnaround | Audit and deal calendars are fixed | Indicative 12 to 20 working days from complete documents, confirmed after the scoping call |
| Cost | Scope changes push fees up | An itemised quote and written timeline before work begins, with a fee that is not a percentage of value |
| Support | Auditor queries arrive after delivery | We respond to auditor and reviewer queries on the report |
Our office is in Okhla Industrial Area, New Delhi. We serve Delhi NCR, including Gurgaon, Noida and Faridabad, and take pan-India assignments. We can also coordinate valuation advisory services around the valuation where the scope needs them.
What Affects the Cost of Intangible Asset Valuation
Four factors set the fee, and we quote against a defined scope.
| Factor | Effect on fee and time |
|---|---|
| Number and type of intangibles | One trademark takes less work than a portfolio of brands, software and customer contracts. |
| Purpose and standard | Statutory or auditor-reviewed work needs fuller documentation. |
| Data availability | Customer-level revenue, churn data and licence benchmarks speed the work. |
| Entity structure and deadline | Group companies add models and review. Audit and deal calendars can shorten or stretch the plan. |
You receive an itemised quote and a written timeline after the free initial consultation and before any work begins.
Common Mistakes When Valuing Intangible Assets
These five errors weaken an intangible asset valuation, and each has a straightforward fix.
| Mistake | Consequence | How we handle it |
|---|---|---|
| Using cost as value | A registered trademark or costly software build can earn little, so value is overstated | We value the asset from the cash it produces or the royalty it saves |
| Counting brand and goodwill twice | Identifiable intangibles are inflated, or goodwill absorbs them | We value the brand first and leave goodwill as the residual |
| Using an unsupported royalty rate | Auditors and tax authorities question it | We benchmark against comparable licences and test against profit margin |
| Skipping contributory asset charges | A customer relationship seems to earn profit that belongs to other assets and staff | We charge a fair return on each contributing asset |
| Appointing a valuer whose registration does not fit the requirement | A valuation the Companies Act requires may not be accepted | We confirm at the scoping call whether a registered valuer’s report is required |
Frequently Asked Questions
About the Service
Q: What Is Valuation of Intangible Assets?
It estimates the value of assets without physical form, such as brands, patents, software and customer relationships, for a stated purpose and date. The valuer uses the income, market or cost approach and explains the choice in a written report.
Q: What Is the Difference Between Goodwill and Brand Value?
A legally identifiable brand or trademark can usually be valued on its own, depending on the rights, the purpose and the accounting framework. Goodwill cannot be traded separately and is generally a residual in an acquisition, so valuing the brand first avoids double counting.
Q: Can an Internally Generated Brand Be Valued?
It can be, for a commercial purpose such as a sale, a licence or an investor discussion. Ind AS 38 does not allow a company to recognise an internally generated brand on the balance sheet, but that is a rule about recognition, not a limit on valuing it for those purposes.
Rules, Registered Valuers and Tax
Q: When Is Intangible Asset Valuation Mandatory in India?
Ind AS 103 requires acquired intangibles to be measured at fair value in a business combination, and Ind AS 36 requires an annual impairment test for goodwill and indefinite-life intangibles. A valuation the Companies Act, 2013 requires must come from a registered valuer under Section 247.
Q: Do I Need a Registered Valuer for Intangible Assets?
It depends on the purpose, the transaction and the law behind the valuation. A valuation the Companies Act requires must come from a registered valuer, and some insolvency and other regulated situations have their own requirements, while many commercial assignments do not.
Q: How Are Acquired Intangibles Treated for Tax?
Section 33 of the Income-tax Act, 2025 allows depreciation on acquired know-how, patents, copyrights, trademarks, licences and franchises, at the rate in the prescribed depreciation table. Goodwill is excluded, and your tax adviser should confirm the position for your facts.
Process, Cost and Contact
Q: How Long Does an Intangible Asset Valuation Take in India?
A typical engagement takes 12 to 20 working days from the date we receive complete documents. We confirm the timeline after the scoping call.
Q: What Documents Are Needed?
Usually three to five years of financials and projections, registration certificates, licence and customer contracts, customer-level revenue and churn data, and transaction documents if an acquisition is involved. We send a checklist after the first call.
Q: How Much Does Intangible Asset Valuation Cost?
Fees depend on the number and type of assets, the purpose, data availability and the deadline. We quote against a defined scope after a free initial consultation, and the fee is not a percentage of the value we conclude.
Q: How Do I Contact Sapient Services for an Intangible Asset Valuation?
Call +91 9540162888 or write to valuation@sapientservices.com, or visit our office in Okhla Industrial Area, New Delhi. Send the asset list and the purpose, and we will confirm the scope and documents.
Talk to Our Intangible Asset Valuation Team in Delhi NCR
Sapient Services Pvt. Ltd. values brands, patents, software, customer relationships and goodwill for companies in Delhi, New Delhi and the wider NCR.
Sapient Services Pvt. Ltd.
S-15, Sapient House, Okhla Industrial Area, Okhla Phase II, New Delhi 110020, India
Phone: +91 9540162888 | Email: valuation@sapientservices.com
Monday to Saturday, 9:30 AM to 6:30 PM
Related services: business valuation services in Delhi, valuation for financial reporting, impairment testing of fixed assets and our valuation advisory services.
