Annual Report 2016-17

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Notes forming part of consolidated onancial statements (Contd.)
180 • Annual Report 2016-17
liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.
Transaction costs that the Group incurs in connection with a business combinations are expensed as incurred.
(e) Goodwill/ Capital Reserve
Goodwill represents the cost of business acquisition in excess of the Group’s interest in the net fair value of
identioable assets, liabilities and contingent liabilities of the acquiree. :hen the net fair value of the identioable
assets, liabilities and contingent liabilities acquired exceeds the cost of business acquisition, a gain is recognized
in the other comprehensive income as capital reserve. Goodwill is measured at cost less accumulated impairment
losses.
(f) Depreciation and amortization
Depreciation on Property, Plant and Equipment is provided using the Straight /ine Method (‘S/M’) over the useful
lives of the assets estimated by the management.
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
Ofoce equipments 5 years
Plant and equipment* 5 years
Plant and equipment (:indmill)* 20 years
Plant and equipment (Solar Energy System)* 10 years
Furniture and oxtures* 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.
/easehold 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.
(g) 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 onancial assets (other than onancial assets at fair value through proot or loss) are added to the fair value of the
onancial assets on initial recognition. Transaction costs directly attributable to the acquisition of onancial assets
at fair value through proot or loss are recognised immediately in proot or loss.
Subsequent measurement
For the purpose of subsequent measurement, onancial assets are classioed as:
- Financial assets at amortized cost
Financial assets that are heldwithin a businessmodel whose objective is to hold assets for collecting contractual
cash pows and whose contractual terms give rise on specioed dates to cash pows 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 onance income in
the statement of proot and loss.