B.2 Summary of Significant Accounting Policies
B.2.1 Property, Plant and Equipment
Property, Plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and
any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent costs are included in the asset's carrying amount or recognized as separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the entity and the
cost can be measured reliably.
Depreciation on Property, plant and equipment is provided on Straight Line Method (SLM) over the estimated
useful lives of the assets considering the nature, estimated usage, operating conditions, past history or
replacement, anticipated technological changes, manufacturer's warranties and maintenance support.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,
2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule
II.
The residual values, useful lives and methods of depreciation of Property, plant and equipment are reviewed
at the end of each reporting period and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement
of Profit and Loss when the asset is derecognized.
B.2.2 Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortization/depletion and impairment loss, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to
the intangible assets.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the entity and the
cost can be measured reliably.
Gains or losses arising from de recognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and
Loss when the asset is derecognized.
B.2.3 Inventories
Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if
any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present
location and condition.
Cost of raw materials, consumable and other products are determined on weighted average basis.
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