The Group has assessed the impact on liquidity position and carrying amounts of inventories, trade receivables,
investments, property, plant and equipment and other financial assets. Our assessment based on estimates and
judgements, available from internal and external sources of information including economic forecasts does not
indicate any material impact on the carrying value of assets and liabilities as on the reporting date.

The Group will continue to monitor the future economic conditions and assess its impact on the financial statements.
The eventual outcome of the impact of the global health pandemic may be different from those estimated as on date of
the approval of the consolidated financial statements.

B.5 PROPERTY PLANT AND EQUIPMENT

Recognition and Measurement

All Property Plant & Equipment (PPE) barring land as at transition date are stated at cost of acquisition / installation
as adjusted for import duty waivers and foreign exchange losses / gains less accumulated depreciation and
impairment losses.

Cost of acquisition / installation includes the fair value of the consideration given to acquire the PPE (net of discounts
and rebates) and any directly attributable costs of bringing the asset to working condition for its intended use
(inclusive of non-refundable purchase taxes and duties).

The Company capitalizes the import duty waived in respect of capital equipment imported under the Export

Promotion Capital Goods Scheme
Foreign exchange gain /loss arising on foreign currency denominated borrowing which are not hedged that were

incurred to acquire PPE are recorded as part of the cost of asset as per Ind AS 101 Para D13AA and Ind AS 21 Para 7AA
and depreciated over their remaining useful life. In respect of exchange gain or loss arising from foreign currency
denominated borrowings which are hedged accounting has been done based on hedge effectiveness either as
derivative or cash flow hedge as per Ind AS 109.

The cost of a self-constructed asset is determined using the same principles as for an acquired asset. If the Group
makes similar assets for sale in the normal course of business, the cost of the asset is usually the same as the cost of
constructing an asset for sale. Any internal profits are eliminated in arriving at such costs. Similarly, the cost of
abnormal amounts of wasted material, labour, or other resources incurred in self-constructing an asset is not included
in the cost of the asset. Borrowing Costs is covered by Ind AS 23 criteria for the recognition of interest as a component
of the carrying amount of a self-constructed item of property, plant and equipment.

Subsequent expenditure relating to an item of PPE is capitalised if it meets the recognition criteria

The import duty waived on capital assets which are purchased under the Export Promotion Capital Goods (EPCG)
schemes and which are capitalized are recorded as deferred revenue and recognized in Statement of Profit and Loss
on a systematic basis over the periods in which the related performance obligations are fulfilled.

Land was fair valued on transition to Ind AS and adopted as deemed cost.

Depreciation on Plant Property and Equipment

The depreciable amount of PPE (being the gross carrying value less the estimated residual value) is depreciated on a
systematic basis over its useful life.

In respect of certain classes of PPE, the Group uses different useful life other than those prescribed in Schedule II to
the Act. The useful life of such class of PPE has been ascertained based on technical review by a Chartered Engineer
and assessment by the management of the Group as detailed in the following table

 

 

 

 

 

 

 

 

Classes of PPE Useful life and basis of
depreciation
New Plant and Machinery 20 Years
Used Plant and Machinery 10 Years
Tool holder, jigs, fixtures, patterns, diel5 Years
Lease hold improvements Over lease period

 

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