Good Health Can’t Wait.

Standalone Financial Statements Annual Report 2014 - 15
NOTES TO FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated)
The Management’s estimates of the useful lives for various categories of fixed assets are given below:
Buildings
- Factory and administrative buildings 20 to 30
- Ancillary structures 3 to 10
Plant and machinery 3 to 15
Electrical equipment 5 to 15
Laboratory equipment 5 to 15
Furniture, fixtures and office equipment 3 to 8
Vehicles 4 to 5
Gains or losses from disposal of tangible fixed assets are recognised in the statement of profit and loss.
Schedule II to the Companies Act, 2013 (“Schedule”) prescribes the useful lives for various classes of tangible assets. For certain class of assets, based
on the technical evaluation and assessment, the Company believes that the useful lives adopted by it best represent the period over which an asset
is expected to be available for use. Accordingly, for these assets, the useful lives estimated by the Company are differentfrom those prescribed in the
Schedule.
Advances paid towards acquisition of tangible fixed assets outstanding at each balance sheet date are shown under long term loans and advances.
Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work-in-progress.
e) Borrowing costs
General and specific borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial
period of time to get ready for their intended use are capitalised. Borrowing costs are interest and other costs incurred by the Company in connection
with the borrowing of funds. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
f) Intangible assets and amortisation
Intangible assets are recorded at the consideration paid for acquisition including any import duties and other taxes (other than those subsequently
recoverable by the enterprise from the taxing authorities), and any directly attributable expenditure in making the asset ready for its intended use.
Intangible assets are amortised on a systematic basis over the best estimate of their useful lives, commencing from the date the asset is available to
the Company for its use.
The Management’s estimates of the useful lives for various categories of intangible assets are given below:
Years
Customer contracts 2 to 5
Technical know-how 10
Product related intangibles 5 to 10
Copyrights and Patents (including marketing / distribution rights) 3 to 10
Others 3 to 5
The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is
significantly different from previous estimates, the amortisation period is changed accordingly.
An intangible asset is derecognised on disposal or when no future economic benefits are expected from its use and disposal. Gains or losses arising
from the disposal of intangible assets are recognised in the statement of profit and loss.
g) Investments
Investments that are readily realisable and are intended to be held for not more than 12 months from the date, on which such investments are made,
are classified as current investments. All other investments are classified as non current investments.
Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each
individual investment.
Non current investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.
The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reasons for the reduction no longer exist.
Any reduction in the carrying amount and any reversal in such reductions are charged or credited to the statement of profit and loss.
Years
119