Page 213 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORTS
REPORT
STATEMENTS
Standalone

5. Investment property
` in crore
Particulars Land Building Total
Gross Block
Balance as at April 1, 2020 1.13 23.15 24.28
Transferred from Property, plant and equipment (note 4(a)) 15.47 24.34 39.81
Balance as at March 31, 2021 16.60 47.49 64.09
Additions - - -
Balance as at March 31, 2022 16.60 47.49 64.09
Accumulated Depreciation
Balance as at April 1, 2020 - 3.17 3.17
Depreciation for the year - 0.60 0.60
Transferred from Property, plant and equipment (note 4(a)) - 5.58 5.58
Balance as at March 31, 2021 - 9.35 9.35
Depreciation for the year - 1.20 1.20
Balance as at March 31, 2022 - 10.55 10.55
Net Block as at March 31, 2021 16.60 38.14 54.74
Net Block as at March 31, 2022 16.60 36.94 53.54

Footnotes:
a) Disclosures relating to fair valuation of investment property
Fair value of the above investment property as at March 31, 2022 is ` 259.74 crore (2021: 273.39 crore) based on external valuation.
Fair Value Hierarchy
The fair value of investment property has been determined by external independent registered valuers as defined under rule 2
of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent
experience in the location and category of the property being valued.
The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the
valuation techniques used.

Description of valuation technique used
The Company obtains independent valuations of its investment property after every three years. The fair value of the investment
property have been derived using the Direct Comparison Method. The direct comparison approach involves a comparison of the
investment property to similar properties that have actually been sold in arms-length distance from investment property or are
offered for sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing
to accept) for similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and
properties that are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that
the comparable instances are located in close proximity to the investment property; these instances have been assessed for their
locational comparative advantages and disadvantages while arriving at the indicative price assessment for investment property.

b) The Company has not earned any material rental income on the above properties.

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