Investor Presentaiton
106
3)
4)
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 cease 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 Company 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
asset, the Company estimates the recoverable amount of the
cash-generating unit (CGU) to which the asset belongs. When
the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down
to its recoverable amount. The resulting impairment loss is
recognised in the Statement of Profit and Loss.
Recoverable amount is the higher of fair value less costs of
disposal 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 the risks specific to the asset.
5)
In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can
be identified, an appropriate valuation model is used.
Where an impairment loss subsequently reverses, the carrying
amount of the asset or CGU is increased to the revised estimate
of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for
the asset or CGU in prior years. A reversal of an impairment
loss is recognised in the Statement of Profit and Loss.
Inventories:
Inventories consisting of stores and spares, raw materials,
Work in progress, Stock in Trade and finished goods are valued
at lower of cost and net realisable value. However, materials
held for use in production of inventories are not written down
below cost, if the finished products are expected to be sold at
or above cost.
The cost is computed on FIFO basis except for stores and
spares which are on daily moving Weighted Average Cost
basis and is net of inputs tax credits under various tax laws.
Goods and materials in transit include materials, duties and
taxes (other than those subsequently recoverable from tax
authorities) labour cost and other related overheads incurred
in bringing the inventories to their present location and
condition.
Traded goods include cost of purchase and other costs
incurred in bringing the inventories to their present location
and condition.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated cost of completion
and estimated cost necessary to make the sale.
Inventory obsolescence is based on assessment of the future
uses. Obsolete and slow-moving items are subjected to
continuous technical monitoring and are valued at lower of cost
and estimated net realisable value. When Inventories are sold,
the carrying amount of those items are recognised as expenses
in the period in which the related revenue is recognised.View entire presentation