Property, plant and equipment

12 Months Ended

Mar. 31, 2022

Disclosure Of Property Plant And Equipment [Abstract]

2.7 Property, plant and equipment

Accounting policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Buildings		22 - 25 years
Plant and machinery⁽¹⁾		5 years
Computer equipment		3-5 years
Furniture and fixtures		5 years
Vehicles		5 years
Leasehold improvements		Lower of useful life of the asset or lease term

⁽¹⁾	Includes solar plant with a useful life of 20 years.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement of comprehensive income when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the net profit in the statement of comprehensive income.

Impairment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

Following are the changes in the carrying value of property, plant and equipment for fiscal 2022:

	(Dollars in millions)
		Land			Buildings			Plant and machinery			Computer equipment			Furniture and fixtures			Vehicles			Total
Gross carrying value as of April 1, 2021			191			1,445			679			1,045			416			6			3,782
Additions			4			81			47		206				26			—			364
Deletions*			—			—			(50	)		(90	)		(7	)		—			(147	)
Translation difference			(7	)		(45	)		(23	)		(36	)		(12	)		—			(123	)
Gross carrying value as of March 31, 2022			188			1,481			653			1,125			423			6			3,876
Accumulated depreciation as of April 1, 2021			—			(503	)		(492	)		(771	)		(294	)		(4	)		(2,064	)
Depreciation			—			(56	)		(57	)		(141	)		(45	)		(1	)		(300	)
Accumulated depreciation on deletions*			—			—			47			90			6			—			143
Translation difference			—			18			18			26			9			—			71
Accumulated depreciation as of March 31, 2022			—			(541	)		(484	)		(796	)		(324	)		(5	)		(2,150	)
Capital work-in-progress as of March 31, 2022																				67
Carrying value as of March 31, 2022			188			940			169			329			99			1			1,793
Capital work-in-progress as of April 1, 2021																					145
Carrying value as of April 1, 2021			191			942			187			274			122			2			1,863

*During the year ended March 31, 2022, certain assets which were old and not in use having gross book value of $43 million (net book value: Nil), were retired

Following are the changes in the carrying value of property, plant and equipment for fiscal 2021:

	(Dollars in millions)
		Land		Buildings			Plant and machinery			Computer equipment			Furniture and fixtures			Vehicles			Total
Gross carrying value as of April 1, 2020			174		1,324			621			882			381			6			3,388
Additions		11		70			39			156			26				—			302
Additions- Business Combinations (Refer to Note 2.10)			—		—			—		1				—			—			1
Deletions			—		—			(4	)		(29	)		(6	)		—			(39	)
Translation difference			6		51			23			35			15			—			130
Gross carrying value as of March 31, 2021			191		1,445			679			1,045			416			6			3,782
Accumulated depreciation as of April 1, 2020			—		(434	)		(418	)		(646	)		(243	)		(4	)		(1,745	)
Depreciation			—		(52	)		(63	)		(129	)		(47	)		(1	)		(292	)
Accumulated depreciation on deletions			—		—		4			27			6				—			37
Translation difference			—		(17	)		(15	)		(23	)		(10	)		1			(64	)
Accumulated depreciation as of March 31, 2021			—		(503	)		(492	)		(771	)		(294	)		(4	)		(2,064	)
Capital work-in-progress as of March 31, 2021																			145
Carrying value as of March 31, 2021			191		942			187			274			122			2			1,863
Capital work-in-progress as of April 1, 2020																				167
Carrying value as of April 1, 2020			174		890			203			236			138			2			1,810

Following are the changes in the carrying value of property, plant and equipment for fiscal 2020:

	(Dollars in millions)
		Land			Buildings			Plant and machinery			Computer equipment			Furniture and fixtures			Vehicles			Total
Gross carrying value as of April 1, 2019			276			1,291			572			855			323			5			3,322
Additions		2			149			106			131			95			1			484
Additions- Business Combinations (Refer to Note 2.10)			—			—			—		9			2				—		11
Deletions			—			—			(2	)		(25	)		(5	)		—			(32	)
Reclassified on account of adoption of IFRS 16 (Refer to Note 2.8)			(88	)		—			—			—			—			—			(88	)
Translation difference			(16	)		(116	)		(55	)		(88	)		(34	)		—			(309	)
Gross carrying value as of March 31, 2020			174			1,324			621			882			381			6			3,388
Accumulated depreciation as of April 1, 2019			(5	)		(423	)		(390	)		(616	)		(225	)		(3	)		(1,662	)
Depreciation			—			(50	)		(67	)		(121	)		(47	)		(1	)		(286	)
Accumulated depreciation on deletions			—			—		2			25			5				—			32
Reclassified on account of adoption of IFRS 16 (Refer to Note 2.8)			5			—			—			—			—			—			5
Translation difference			—			39		37				66			24						166
Accumulated depreciation as of March 31, 2020			—			(434	)		(418	)		(646	)		(243	)		(4	)		(1,745	)
Capital work-in-progress as of March 31, 2020																				167
Carrying value as of March 31, 2020			174			890			203			236			138			2			1,810
Capital work-in-progress as of April 1, 2019																					271
Carrying value as of April 1, 2019			271			868			182			239			98			2			1,931

The aggregate depreciation expense is included in cost of sales in the consolidated statement of comprehensive income.

The Group had contractual commitments for capital expenditure primarily comprising of commitments for infrastructure facilities and computer equipments aggregating to $164 million and $100 million as of March 31, 2022, and March 31, 2021, respectively.