Property, plant and equipment

Land, buildings, machinery and equipment held for use rather than sale, carried at cost less accumulated depreciation.

With ₹5,300 crore of gross block and ₹2,400 crore of accumulated depreciation, a manufacturer reports ₹2,900 crore net.

The ratio between those two figures is a useful and underused indicator. At 45% depreciated, an asset base is middle-aged. At 80% depreciated it's due for replacement, and the capital spending that implies has to be funded from somewhere.

For each class of asset, the fixed asset note gives gross block, additions, disposals and depreciation.

Old assets flatter return on capital and understate future spending.