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As a lessor:
Income from operating leases where the Company is a lessor is recognised as income on a straight-line basis over the
ŕĚîƙĚ ƥĚƑŞ ƭŠŕĚƙƙ ƥĺĚ ƑĚČĚĿƎƥƙ îƑĚ ƙƥƑƭČƥƭƑĚē ƥū ĿŠČƑĚîƙĚ ĿŠ ŕĿŠĚ DžĿƥĺ ĚNJƎĚČƥĚē ijĚŠĚƑîŕ ĿŠǜîƥĿūŠ ƥū ČūŞƎĚŠƙîƥĚ ljūƑ ƥĺĚ
ĚNJƎĚČƥĚē ĿŠǜîƥĿūŠîƑNj Čūƙƥ ĿŠČƑĚîƙĚƙȦ ¹ĺĚ ƑĚƙƎĚČƥĿDŽĚ ŕĚîƙĚē îƙƙĚƥƙ îƑĚ ĿŠČŕƭēĚē ĿŠ ƥĺĚ îŕîŠČĚ ¬ĺĚĚƥ ċîƙĚē ūŠ ƥĺĚĿƑ ŠîƥƭƑĚȦ
Leases of property, plant and equipment where the Company as a lessor has substantially transferred all the risks and
ƑĚDžîƑēƙ îƑĚ ČŕîƙƙĿǛĚē îƙ ǛŠîŠČĚ ŕĚîƙĚȦ GĿŠîŠČĚ ŕĚîƙĚƙ îƑĚ ČîƎĿƥîŕĿƙĚē îƥ ƥĺĚ ĿŠČĚƎƥĿūŠ ūlj ƥĺĚ ŕĚîƙĚ îƥ ƥĺĚ ljîĿƑ DŽîŕƭĚ ūlj ƥĺĚ
leased property or, if lower, the present value of the minimum lease payments. The corresponding rent receivables, net
ūlj ĿŠƥĚƑĚƙƥ ĿŠČūŞĚȡ îƑĚ ĿŠČŕƭēĚē ĿŠ ūƥĺĚƑ ǛŠîŠČĿîŕ îƙƙĚƥƙȦ /îČĺ ŕĚîƙĚ ƑĚČĚĿƎƥ Ŀƙ îŕŕūČîƥĚē ċĚƥDžĚĚŠ ƥĺĚ îƙƙĚƥ îŠē ĿŠƥĚƑĚƙƥ
ĿŠČūŞĚȦ ¹ĺĚ ĿŠƥĚƑĚƙƥ ĿŠČūŞĚ Ŀƙ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ūDŽĚƑ ƥĺĚ ŕĚîƙĚ ƎĚƑĿūē ƙū îƙ ƥū ƎƑūēƭČĚ î
constant periodic rate of interest on the remaining balance of the asset for each period.
ÀŠēĚƑ ČūŞċĿŠĚē ŕĚîƙĚ îijƑĚĚŞĚŠƥƙȡ ŕîŠē îŠē ċƭĿŕēĿŠij îƑĚ îƙƙĚƙƙĚē ĿŠēĿDŽĿēƭîŕŕNjȦ gĚîƙĚ ƑĚŠƥîŕ îƥƥƑĿċƭƥîċŕĚ ƥū ƥĺĚ ūƎĚƑîƥĿŠij
ŕĚîƙĚ îƑĚ ČĺîƑijĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ îƙ ŕĚîƙĚ ĿŠČūŞĚ DžĺĚƑĚîƙ ŕĚîƙĚ ĿŠČūŞĚ îƥƥƑĿċƭƥîċŕĚ ƥū ǛŠîŠČĚ ŕĚîƙĚ
Ŀƙ ƑĚČūijŠĿƙĚē îƙ ǛŠîŠČĚ ŕĚîƙĚ ƑĚČĚĿDŽîċŕĚ îŠē ƑĚČūijŠĿƙĚē ūŠ ƥĺĚ ċîƙĿƙ ūlj ĚljljĚČƥĿDŽĚ ĿŠƥĚƑĚƙƥ ƑîƥĚȦ
g) Property, plant and equipment:
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at acquisition cost
net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is
directly attributable to the acquisition of the items. Acquisition cost may also include transfers from equity of any gains or
ŕūƙƙĚƙ ūŠ ƐƭîŕĿljNjĿŠij Čîƙĺ ǜūDž ĺĚēijĚƙ ūlj ljūƑĚĿijŠ ČƭƑƑĚŠČNj ƎƭƑČĺîƙĚƙ ūlj ƎƑūƎĚƑƥNjȡ ƎŕîŠƥ îŠē ĚƐƭĿƎŞĚŠƥȦ
Subsequent costs are included in the carrying amount of asset or recognised as a separate asset, as appropriate, only
DžĺĚŠ Ŀƥ Ŀƙ ƎƑūċîċŕĚ ƥĺîƥ ljƭƥƭƑĚ ĚČūŠūŞĿČ ċĚŠĚǛƥƙ îƙƙūČĿîƥĚē DžĿƥĺ ƥĺĚ ĿƥĚŞ DžĿŕŕ ǜūDž ƥū ƥĺĚ ūŞƎîŠNj îŠē ƥĺĚ Čūƙƥ ūlj ƥĺĚ
ĿƥĚŞ ČîŠ ċĚ ŞĚîƙƭƑĚē ƑĚŕĿîċŕNjȦ ŕŕ ūƥĺĚƑ ƑĚƎîĿƑƙ îŠē ŞîĿŠƥĚŠîŠČĚ ĚNJƎĚŠƙĚƙ îƑĚ ČĺîƑijĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē
Loss during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognised
ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ
Fruit bearing plants qualify as Bearer plant under Ind AS 16. Expenditure incurred on cultivation of plantations up to the
date they become capable of bearing fruit are accumulated as Bearer plant under development (Immature) and then
capitalised as a Bearer plant (Mature) to be depreciated over their estimated useful life.
The plantation destroyed due to calamity, disease or any other reasons whether capitalised as Bearer plant (Mature) or
ċĚĿŠij ČîƑƑĿĚē ƭŠēĚƑ ĚîƑĚƑ ƎŕîŠƥ ƭŠēĚƑ ēĚDŽĚŕūƎŞĚŠƥ ȳTŞŞîƥƭƑĚȴ îƑĚ ČĺîƑijĚē ūljlj ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ
Spare parts, stand-by equipment and servicing equipment are recognised as property, plant and equipment if they are
held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and are
expected to be used during more than one period.
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as
‘Capital work-in-progress’.
Depreciation methods, estimated useful lives and residual value:
Depreciation is provided on the straight-line method to allocate the cost of assets, net of their residual values, over their
estimated useful lives.
Depreciation is calculated on a pro-rata basis from the date of acquisition | installation till the date the assets are sold or
disposed of:
Asset category
Estimated useful life
Buildings
30 to 60 years
Plant and equipment
1
6 to 20 years
Vehicles
1
6 to 10 years
~ljǛČĚ ĚƐƭĿƎŞĚŠƥ îŠē ljƭƑŠĿƥƭƑĚ
5 to 10 years
Roads
5 years
Bearer plant
1
ǪǦ NjĚîƑƙ
125
Standalone
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Notes to the Financial Statements