once classified as held for sale are not depreciated or amortised. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: Represents a separate major line of business or geographical area of operations, Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations or Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the consolidated statement of profit and loss. Additional disclosures are provided in Note 47. All notes to the consolidated financial statements mainly include amounts for continuing operations, unless otherwise mentioned. i. Property, plant and equipment and Capital work-in-progress Freehold land is carried at historical cost. Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, the cost of replacing the part of plant and equipment and borrowing costs if capitalization criteria are met and any attributable cost of bringing the asset to its working condition and location for the intended use. Capital work in progress includes cost of property, plant and equipment under installation/under development as at the balance sheet date net of accumulated impairment loss, if any. Property, plant and equipment under installation or under construction as at balance sheet are shown as capital work-inprogress and the related advances are shown as capital advances. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. When signifi cant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specifi c useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfi ed. All other repair and maintenance costs are recognised in the consolidated statement of profi t and loss as incurred. 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. Spare parts are capitalized when they meet the defi nition of PPE, i.e., when the Group intends to use these during more than a period of 12 months. Depreciation is provided on the basis of straightline method at the useful life and in the manner prescribed in Schedule II of the Companies Act, 2013 except in respect of the following assets, based on technical assessment made by technical expert and /or internal evaluation. Management believes that these estimated useful lives are realistic and refl ect fair approximation of the period over which the assets are likely to be used. The useful life provided for diff erent asset classes under schedule II of the Act and considered by the management are as follows: Asset class Useful life considered by management (in years) Useful life prescribed under the Act (in years) Buildings (including investment property) 5 – 30 30 Plant and machinery 1 – 20 15 Furniture and Fixtures 1 – 15 10 Vehicles 2 – 10 8 Office Equipment 1 – 20 5 i) Depreciation on Improvements to leasehold property is provided over the period of lease. ii) Depreciation in respect of its Renewable Energy business is provided on straight line method and at rates/ methodology prescribed under the relevant Central Electricity Regulatory Commission (CERC) regulations. Depreciation on assets which are commissioned during the year is charged on pro -rata basis from the date of commissioning. The company depreciates general spares over the life of the spare from the date it is available for use. An item of property, plant and equipment and any signifi cant part initially recognised is 261 Consolidated | Financial Statements
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