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Notes on the standalone financial statements
for the year ended 31 March 2017
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
b. Property, plant and equipment
i) Tangible assets
Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance sheet at cost
net of accumulated depreciation and accumulated impairment losses, if any as at 31 March 2015. The Company has
elected to regard those values of property as deemed cost at the date of the transition to Ind AS, i.e., 1 April 2015.
Property, plant and equipment are stated at cost [i.e., cost of acquisition or construction inclusive of freight, erection
and commissioning charges, non-refundable duties and taxes, expenditure during construction period, borrowing
costs (in case of a qualifying asset) upto the date of acquisition/ installation], net of accumulated depreciation and
accumulated impairment losses, if any.
When significant parts of property, plant and equipment (identified individually as component) are required to
be replaced at intervals, the Company derecognizes the replaced part, and recognizes the new part with its own
associated useful life and it is depreciated accordingly. Whenever major inspection/overhaul/repair is performed, its
cost is recognized in the carrying amount of respective assets as a replacement, if the recognition criteria are satisfied.
All other repair and maintenance costs are recognized in the statement of profit and loss.
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met.
Property, plant and equipments are eliminated from financial statements, either on disposal or when retired from
active use. Losses/gains arising in case retirement/disposals of property, plant and equipment are recognized in the
statement of profit and loss in the year of occurrence.
Depreciation on property, plant and equipments are provided to the extent of depreciable amount on the straight line
(SLM) Method. Depreciation is provided at the rates and in the manner prescribed in Schedule II to the Companies
Act, 2013 except on some assets, where useful life has been taken based on external / internal technical evaluation as
given below:
Particulars
Useful Life
Plant & machinery
7, 10 & 18 years
Fit-out and other assets at sales outlets
5 years
Leasehold Land and Leasehold Improvements are amortized over the period of the lease or the useful life of the asset,
whichever is lower.
The residual values, useful lives and methods of depreciation/amortization of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.
ii) Capital work in progress
Capital work in progress includes construction stores including material in transit/ equipment / services, etc. received
at site for use in the projects.
All revenue expenses incurred during construction period, which are exclusively attributable to acquisition / construction
of fixed assets, are capitalized at the time of commissioning of such assets.
c. Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortization.