Page 201 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Standalone

Depreciation methods, estimated useful lives The intangible assets with a finite useful life
and residual value are amortised using straight line method over
their estimated useful lives. The management’s
Depreciation on PPE (except leasehold estimates of the useful lives for various class of
improvements) is calculated using the straight-line Intangibles are as given below:
method to allocate their cost, net of their residual
values, over their estimated useful lives. However, Asset Useful life
leasehold improvements are depreciated on a Computer software 5 years
straight-line method over the shorter of their Other intangible assets 4- 20 years
respective useful lives or the tenure of the lease The estimated useful life is reviewed annually by
arrangement. Freehold land is not depreciated.
the management.
Schedule II to the Act prescribes the useful lives for Gains or losses arising from the retirement or
various class of assets. For certain class of assets, disposal of an intangible asset are determined
based on technical evaluation and assessment, as the difference between the net disposal
Management believes that the useful lives proceeds and the carrying amount of the asset
adopted by it reflect the periods over which these and recognised as income or expense in the
assets are expected to be used. Accordingly for Standalone Statement of Profit and Loss.
those assets, the useful lives estimated by the
management are different from those prescribed 2.7 Capital work-in-progress (‘CWIP’) and
in the Schedule. Management’s estimates of the intangible assets under development
useful lives for various class of PPE are as given Projects under commissioning and other CWIP/
below: intangible assets under development are carried
Asset Useful life at cost, comprising direct cost, related incidental
Salt Works, Water works, Reservoirs 1-30 years expenses and attributable borrowing cost.
and Pans Subsequent expenditures relating to property,
Plant and Machinery 1-60 years plant and equipment are capitalised only when it is
Traction Lines and Railway Sidings 15 years probable that future economic benefit associated
Factory Buildings 5-60 years with these will flow to the Company and the cost
Other Buildings 5-60 years of the item can be measured reliably.
Furniture and Fittings and Office 1-10 years Advances given to acquire property, plant and
Equipment (including Computers equipment are recorded as non-current assets and
and Data Processing Equipment) subsequently transferred to CWIP on acquisition of
Vehicles 4-10 years related assets.
Useful lives and residual values of assets are 2.8 Investment property
reviewed at the end of each reporting period.
Investment properties are land and buildings that
Losses arising from the retirement of, and gains or are held for long term lease rental yields and/ or
losses arising from disposal/adjustments of PPE for capital appreciation. Investment properties are
are recognised in the Standalone Statement of initially recognised at cost including transaction
Profit and Loss. costs. Subsequently investment properties
comprising buildings are carried at cost less
2.6 Intangible assets accumulated depreciation and accumulated
Intangible assets comprise software licenses, impairment losses, if any.
product registration fees and rights to use railway Depreciation on buildings is provided over the
wagon.
estimated useful lives as specified in note 2.5
Intangible assets are measured on initial above. The residual values, estimated useful lives
recognition at cost and subsequently are carried and depreciation method of investment properties
at cost less accumulated amortisation and are reviewed, and adjusted on prospective basis as
accumulated impairment losses, if any. appropriate, at each reporting date. The effects

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