GSK_Annual_Report_2021

Notes to the Consolidated Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 187 Note 3 : Property, Plant and Equipment ( ` in lakhs) Particulars Gross Carrying Value Accumulated Depreciation Net Carrying Value As at April 1, 2020 Additions Disposals Assets held for sale (Refer Note 3(b) below) As at March 31, 2021 As at April 1, 2020 Charge for the Year On Disposals Impairment (Refer Note 3(b) below) On Assets held for sale (Refer Note 3(b) below) As at March 31, 2021 As at March 31, 2021 Freehold land 2.00 - - - 2.00 - - - - - - 2.00 Leasehold land 55,99.13 - - 55,54.90 44.23 21,98.55 17.82 - - 22,16.37 - 44.23 Freehold buildings 26,05.30 - - - 26,05.30 2,49.53 67.72 - - - 3,17.25 22,88.05 Leasehold buildings 415,19.49 1,54.39 - 340,58.93 76,14.95 196,92.59 5,15.18 - - 186,70.85 15,36.92 60,78.03 Plant and equipment (Refer Note (a) below) 749,84.71 21,90.29 5,73.98 449,47.75 316,53.27 384,61.50 38,01.89 5,68.10 54,45.00 332,22.06 139,18.23 177,35.04 Furniture and fixtures 46,98.04 20,98.51 9.97 24,34.13 43,52.45 32,09.00 4,59.88 7.93 - 24,34.13 12,26.82 31,25.63 Vehicles 14,21.66 4,06.29 3,03.18 36.45 14,88.32 7,47.11 2,48.92 2,50.81 - 10.91 7,34.31 7,54.01 Office equipment 10,24.72 7,61.14 4.90 1,25.88 16,55.08 5,33.82 3,14.23 4.65 - 1,25.88 7,17.52 9,37.56 Total 1318,55.05 56,10.62 8,92.03 871,58.04 494,15.60 650,92.10 54,25.64 8,31.49 54,45.00 566,80.20 184,51.05 309,64.55 ( ` in lakhs) Particulars Gross Carrying Value Accumulated Depreciation Net Carrying Value As at April 1, 2019 Additions Disposals Assets held for sale (Refer Note 3(b) below) As at March 31, 2020 As at April 1, 2019 Charge for the Year On Disposals Impairment (Refer Note 3(b) below) On Assets held for sale (Refer Note 3(b) below) As at March 31, 2020 As at March 31, 2020 Freehold land 2.00 - - - 2.00 - - - - - - 2.00 Leasehold land 55,99.13 - - - 55,99.13 2,11.58 36.98 - 19,49.99 - 21,98.55 34,00.58 Freehold buildings 25,66.59 42.93 4.22 - 26,05.30 1,83.17 66.58 0.22 - - 2,49.53 23,55.77 Leasehold buildings 73,44.52 341,74.97 - - 415,19.49 7,38.43 5,08.53 - 184,45.63 - 196,92.59 218,26.90 Plant and equipment (Refer Note (a) below) 297,15.64 468,91.70 16,22.63 - 749,84.71 90,46.83 40,95.30 16,22.24 269,41.61 - 384,61.50 365,23.21 Furniture and fixtures 7,95.61 39,84.01 81.58 - 46,98.04 3,92.65 4,49.33 49.90 24,16.92 - 32,09.00 14,89.04 Vehicles 14,39.84 2,66.77 2,84.95 - 14,21.66 6,73.95 2,64.33 2,14.88 23.71 - 7,47.11 6,74.55 Office equipment 5,23.54 5,49.28 48.10 - 10,24.72 2,95.00 1,57.09 37.64 1,19.37 - 5,33.82 4,90.90 Total 479,86.87 859,09.66 20,41.48 - 1318,55.05 115,41.61 55,78.14 19,24.88 498,97.23 - 650,92.10 667,62.95 Notes: Note 3 (a) Plant and equipment includes computers. Note 3 (b) Following the decision to initiate a global voluntary recall (pharmacy/retail level) of ranitidine products including Zinetac in India by the Ultimate Holding Company the Group during the previous year ended March 31, 2020 had undertakten comprehensive strategic review of the impact of this recall on all related assets in India including its manufacturing site at Vemgal. Consequent to the above, the Group had recognized financial impairment of ` 637,42.85 lakhs (including cost to sell ` 30,91.76 lakhs) in respect of the property, plant and equipment, capital work-in-progress and intangible assets (“specified assets”) connected to the underutilization of its manufacturing facilities. Additionally, the Group had created provision of ` 40,33.00 lakhs on account of other related assets. After considering all the strategic options available, the Group decided to proceed with the sale of the assets at Vemgal site and classifed these assets as held for sale after considering additional impairment of ` 54,45.00 lakhs.