Property, plant and equipment

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

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

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

The fixed asset note gives gross block, additions, disposals and depreciation for each class.

Old assets flatter return on capital and understate future spending.