8.	Goodwill

The Company’s goodwill is in respect of its acquisition of India Abroad. The goodwill has been allocated to the US Publishing business, reporting unit.

The changes in the carrying amount of goodwill for the fiscal years ended March 31, 2012 and 2013 were as follows:


	For the year ended March 31,
	2012						2013
	Gross		Accumulated impairment		Net		Gross		Accumulated impairment		Net
	US$		US$		US$		US$		US$		US$
As at beginning of the year		10,515,168		8,515,168		2,000,000		10,515,168		8,515,168		2,000,000
Impairment		—		—		—		—		2,000,000		2,000,000
As at end of the year		10,515,168		8,515,168		2,000,000		10,515,168		10,515,168		—

In fiscal year 2013, the Company recognised a goodwill impairment loss of US$2,000,000. The impairment was on account of the weakness in the publishing industry which resulted in reduction of the US publishing business’s projected operating results and estimated future cash flows. The Company used an income-based valuation approach to determine the fair value of the reporting unit by estimating the present value of future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates.