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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
ĚNJƎĚČƥĚē ƥū ċĚ ƭƙĚē ēƭƑĿŠij ŞūƑĚ ƥĺîŠ ūŠĚ ƎĚƑĿūēȦ
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’.
'ĚƎƑĚČĿîƥĿūŠ ŞĚƥĺūēƙȡ ĚƙƥĿŞîƥĚē ƭƙĚljƭŕ ŕĿDŽĚƙ îŠē ƑĚƙĿēƭîŕ DŽîŕƭĚȠ
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their
ĚƙƥĿŞîƥĚē ƭƙĚljƭŕ ŕĿDŽĚƙ ūƑȡ ĿŠ ƥĺĚ ČîƙĚ ūlj ČĚƑƥîĿŠ ŕĚîƙĚē ljƭƑŠĿƥƭƑĚȡ ǛƥƥĿŠijƙ îŠē ĚƐƭĿƎŞĚŠƥȡ ƥĺĚ ƙĺūƑƥĚƑ ŕĚîƙĚ ƥĚƑŞ ūlj ƭƙĚljƭŕ
lives are as follows:
Asset category
Estimated useful life
Buildings
30 to 60 years
Roads
5 years
Plant and equipment
1
6 to 20 years
~ljǛČĚ ĚƐƭĿƎŞĚŠƥ îŠē ljƭƑŠĿƥƭƑĚ
5 to 10 years
Vehicles
1
6 to 10 years
Bearer plant
1
ǪǦ NjĚîƑƙ
1
¹ĺĚ ƭƙĚljƭŕ ŕĿDŽĚƙ ĺîDŽĚ ċĚĚŠ ēĚƥĚƑŞĿŠĚē ċîƙĚē ūŠ ƥĚČĺŠĿČîŕ ĚDŽîŕƭîƥĿūŠ ēūŠĚ ċNj ƥĺĚ qîŠîijĚŞĚŠƥ ĚNJƎĚƑƥƙ DžĺĿČĺ îƑĚ
ēĿljljĚƑĚŠƥ ljƑūŞ ƥĺĚ ƭƙĚljƭŕ ŕĿljĚ ƎƑĚƙČƑĿċĚē ĿŠ ¡îƑƥ ūlj ¬ČĺĚēƭŕĚ TT ƥū ƥĺĚ Čƥȡ ĿŠ ūƑēĚƑ ƥū ƑĚǜĚČƥ ƥĺĚ îČƥƭîŕ ƭƙîijĚ ūlj ƥĺĚ îƙƙĚƥƙȦ
The residual values are not more than 5% of the original cost of the asset. The residual value, useful live and method of
ēĚƎƑĚČĿîƥĿūŠ ūlj ƎƑūƎĚƑƥNjȡ ƎŕîŠƥ îŠē ĚƐƭĿƎŞĚŠƥ îƑĚ ƑĚDŽĿĚDžĚē ƭîŕŕNj îŠē îēŏƭƙƥĚē ƎƑūƙƎĚČƥĿDŽĚŕNjȡ Ŀlj îƎƎƑūƎƑĿîƥĚȦ
¹ĺĚ ƎƑūƎĚƑƥNjȡ ƎŕîŠƥ îŠē ĚƐƭĿƎŞĚŠƥ ĿŠČŕƭēĿŠij ŕîŠē îČƐƭĿƑĚē ƭŠēĚƑ ǛŠîŠČĚ ŕĚîƙĚƙ îƑĚ ēĚƎƑĚČĿîƥĚē ūDŽĚƑ ƥĺĚ ƭƙĚljƭŕ ŕĿljĚ ūlj ƥĺĚ
asset or over the shorter of the useful life of the asset and the lease term if there is no reasonable certainty that the Group
will obtain ownership at the end of the lease term.
The carrying amount of an asset is written down immediately to its recoverable amount if the carrying amount of the asset
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ DžĿƥĺĿŠ ūƥĺĚƑ ĿŠČūŞĚȦ
ŏȴ HūūēDžĿŕŕȠ
HūūēDžĿŕŕ ƑĚƎƑĚƙĚŠƥƙ ƥĺĚ Čūƙƥ ūlj ƥĺĚ îČƐƭĿƑĚē ċƭƙĿŠĚƙƙĚƙ ʈ ƙƭċƙĿēĿîƑNj ĿŠ ĚNJČĚƙƙ ūlj ƥĺĚ ljîĿƑ DŽîŕƭĚ ūlj ĿēĚŠƥĿǛîċŕĚ ŠĚƥ
assets acquired. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or
changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment
losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill of the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
ČîƙĺȹijĚŠĚƑîƥĿŠij ƭŠĿƥƙ ūƑ ijƑūƭƎƙ ūlj ČîƙĺȹijĚŠĚƑîƥĿŠij ƭŠĿƥƙ ƥĺîƥ îƑĚ ĚNJƎĚČƥĚē ƥū ċĚŠĚǛƥ ljƑūŞ ƥĺĚ ċƭƙĿŠĚƙƙ ČūŞċĿŠîƥĿūŠ ĿŠ
DžĺĿČĺ ƥĺĚ ijūūēDžĿŕŕ îƑūƙĚȦ ¹ĺĚ ƭŠĿƥƙ ūƑ ijƑūƭƎƙ ūlj ƭŠĿƥƙ îƑĚ ĿēĚŠƥĿǛĚē îƥ ƥĺĚ ŕūDžĚƙƥ ŕĚDŽĚŕ îƥ DžĺĿČĺ ijūūēDžĿŕŕ Ŀƙ ŞūŠĿƥūƑĚē ljūƑ
internal Management purposes.
Œȴ ~ƥĺĚƑ ĿŠƥîŠijĿċŕĚ îƙƙĚƥƙȠ
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
TŠƥĚƑŠîŕŕNj ijĚŠĚƑîƥĚē ĿŠƥîŠijĿċŕĚƙȡ ĚNJČŕƭēĿŠij ČîƎĿƥîŕĿƙĚē ēĚDŽĚŕūƎŞĚŠƥ Čūƙƥƙȡ îƑĚ Šūƥ ČîƎĿƥîŕĿƙĚē îŠē ƥĺĚ ƑĚŕîƥĚē ĚNJƎĚŠēĿƥƭƑĚ
Ŀƙ ƑĚǜĚČƥĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ ĿŠ ƥĺĚ ƎĚƑĿūē ĿŠ DžĺĿČĺ ƥĺĚ ĚNJƎĚŠēĿƥƭƑĚ Ŀƙ ĿŠČƭƑƑĚēȦ
Š ĿŠƥîŠijĿċŕĚ îƙƙĚƥ Ŀƙ ēĚƑĚČūijŠĿƙĚē ūŠ ēĿƙƎūƙîŕȡ ūƑ DžĺĚŠ Šū ljƭƥƭƑĚ ĚČūŠūŞĿČ ċĚŠĚǛƥƙ îƑĚ ĚNJƎĚČƥĚē ljƑūŞ ƭƙĚ ūƑ ēĿƙƎūƙîŕȦ
Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal
ƎƑūČĚĚēƙ îŠē ƥĺĚ ČîƑƑNjĿŠij îŞūƭŠƥ ūlj ƥĺĚ îƙƙĚƥȡ îƑĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ DžĺĚŠ ƥĺĚ
asset is derecognised.
Consolidated
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Notes to the Financial Statements
193