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Shaping the future of software driven business
Unconsolidated Financials •
279
The management estimates the useful lives for the Property, Plant and Equipment as follows:
Assets
Useful lives
Buildings*
25 years
Computers
3 years
Computers - Servers and networks*
3 years
Office equipments
5 years
Plant and equipment*
5 years
Plant and equipment (Windmill)*
20 years
Plant and equipment (Solar Energy System)*
10 years
Furniture and fixtures*
5 years
Vehicles*
5 years
*For these classes of assets, based on internal assessment and independent technical evaluation carried out by external
valuers, the management believes that the useful lives as given above best represent the period over which the
management expects to use these assets. Hence the useful lives of these assets are different from the useful lives as
prescribed under Part C of Schedule II of the Companies Act 2013.
Individual assets whose cost does not exceed
`
5,000 are fully depreciated in the year of acquisition.
Leasehold improvements are amortized over the period of lease or useful life, whichever is lower.
Intangible assets are amortized on a straight line basis over their estimated useful lives commencing from the day the
asset is made available for use.
(e) Financial instruments
i) Financial assets
Initial recognition and measurement
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of
financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of the financial
assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at fair value
through profit or loss are recognised immediately in profit or loss.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified as:
- Financial assets at amortized cost
Financial assets that are held within a business model whose objective is to hold assets for collecting contractual cash
flows and whose contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding are subsequently measured at amortized cost using the effective interest
rate method. The change in measurements are recognized as finance income in the statement of profit and loss.
- Financial assets at fair value through other comprehensive income (FVTOCI)
Financial assets that are held within a business model whose objective is achieved both by collecting contractual cash
flows and selling the financial assets and the assets’ contractual cash flows represent solely payments of principal
and interest on the principal amount outstanding are subsequently measured at fair value. Fair value movements are
recognized in other comprehensive income.
- Financial assets at fair value through profit or loss (FVTPL)
Any financial asset which does not meet the criteria for categorization as financial asset at amortized cost or as
FVTOCI, is classified as financial asset at FVTPL. Financial assets except derivative contracts included within the FVTPL
category are subsequently measured at fair value with all changes recognized in the statement of profit and loss.
- Forward exchange contracts not intended for trading or speculation purposes, classified as derivative financial
instruments
As per the accounting principles laid down in Ind AS 109 – “Financial Instruments” relating to cash flow hedges,
derivative financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and
Notes forming part of financial statements (Contd.)