Investor Presentaiton
MRP
2)
physical wear and tear, the operating conditions of the
asset, anticipated technological changes, manufacturers
warranties and maintenance support.
Depreciation on property, plant and equipment added/
disposed off during the year is provided on pro rata basis with
reference to the date of addition/disposal.
The assets' residual values, useful lives and methods of
depreciation are reviewed at each financial year end and
adjusted prospectively, if appropriate.
Further, the Group has identified and determined separate
useful life for each major component of Property, Plant and
Equipment, if they are materially different from that of the
remaining assets, for providing depreciation in compliance
with Schedule II of the Companies Act, 2013.
In respect of Property, Plant & Equipment of MRF Lanka Pvt.
Ltd. and MRF SG PTE Ltd. depreciation is provided on straight
line method based on management estimate of useful life
of assets based on internal technical evaluation, except for
certain Property, Plant and Equipment namely Building, Plant
and Machinery, Moulds and Equipments of MRF Lanka Pvt
Ltd, which are depreciated on Written Down Value method.
The proportion of depreciation of the Subsidiaries to the total
depreciation of the group is not material.
Intangible Assets:
Intangible assets acquired separately are measured on initial
recognition at cost. After initial recognition, intangible assets
are carried at cost less any accumulated amortisation and
accumulated impairment losses.
Software (not being an integral part of the related hardware)
acquired for internal use are treated as intangible assets.
An item of Intangible asset is derecognised on disposal or
when no future economic benefits are expected from its use
or disposal. Any profit or loss arising from derecognition of an
intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and
3)
4)
are recognised in the Consolidated statement of profit and loss
when the asset is derecognised.
Intangible Assets are amortised over 5 years on straight-line
method over the estimated useful economic life of the assets.
The group undertakes Research and Development activities for
development of new and improved products. All expenditure
incurred during Research and Development are analysed into
research phase and development phase. The group recognises
all expenditure incurred during the research phase in the profit
or loss whereas the expenditure incurred in development
phase are presented as Intangible Assets under Development
till the time they are available for use in the manner intended
at which moment they are treated as Intangible Assets and
amortised over their estimated useful life.
Assets held for Sale:
Non-current assets are classified as held for sale if their
carrying amount is intended to be recovered principally
through sale rather than through continuing use. The condition
for classification of held for sale is met when the non-current
asset is available for immediate sale and the same is highly
probable of being completed within one year from the date
of classification as held for sale. Non-current assets held for
sale are measured at the lower of carrying amount and fair
value less cost to sell. Non-current assets that ceases to be
classified as held for sale shall be measured at the lower of
carrying amount before the non-current asset was classified as
held for sale adjusted for any depreciation/amortization and
its recoverable amount at the date when it no longer meets the
"Held for Sale" criteria.
Impairment of tangible (PPE) and intangible assets:
At the end of each reporting period, the Group reviews the
carrying amounts of its PPE and other intangible assets to
determine whether there is any indication that these assets
have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss. Where it is not
possible to estimate the recoverable amount of an individual
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