Page 215 - Tata_Chemicals_yearly-reports-2017-18

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` in crore
Particulars Land Building Total
Gross Block
Balance as at 1 April, 2016 2.52 3.37 5.89
Disposals (0.07) - (0.07)
Balance as at 31 March, 2017 2.45 3.37 5.82

Transferred from property, plant and equipment 1.13 23.15 24.28
Balance as at 31 March, 2018 3.58 26.52 30.10
Accumulated depreciation Integrated Report
Balance as at 1 April, 2016 - 0.08 0.08

Depreciation for the year - 0.08 0.08
Balance as at 31 March, 2017 - 0.16 0.16
Depreciation for the year - 0.08 0.08
Transferred from property, plant and equipment - 1.92 1.92
Balance as at 31 March, 2018 - 2.16 2.16

Net Block as at 31 March, 2017 2.45 3.21 5.66
Net Block as at 31 March, 2018 3.58 24.36 27.94

Footnotes: Statutory Reports
a) Disclosures relating to fair valuation of investment property

Investment property carrying a net book value of ` 5.58 crore (2017: ` 5.66 crore) pertain to a domestic subsidiary and have been fair
valued at ` 48.95 crore (2017: ` 48.48 crore). The Group is in the process of assessment of fair value of the investment property with a net
book value of ` 22.36 crore (2017: ` Nil).
Fair Value Hierarchy

The fair value of investment property has been determined by external independent property valuers, having appropriate recognised
professional qualification and relevant experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categoried as a level 3 fair value based on the inputs to the
valuation techniques used.
Description of Valuation Technique used: Financial Statements

The Group obtains independent valuations of its investment property as at the year end. The fair value of the investment properties 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 Group has not earned any material rental income on the above properties.

Consolidated Financial Statements 213