Annual Report 2016-17

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Notes forming part of onancial statements (Contd.)
244 • Annual Report 2016-17
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 (Windmill)* 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.
(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 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 held within a business model 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.
- 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 pows and selling the onancial assets and the assets’ contractual cash pows 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 proot or loss (FVTPL)
Any onancial asset which does not meet the criteria for categorization as onancial asset at amortized
cost or as FVTOCI, is classioed as onancial asset at FVTP/. Financial assets except derivative contracts
included within the FVTP/ category are subsequently measured at fair value with all changes recognized
in the statement of proot and loss.