Page 308 - NHB AR 2020-21-3 complete- Print (1)
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7. Fixed Assets
7.1. Fixed assets are carried at historical cost less accumulated depreciation.
7.2. Depreciation on assets (including land where value is not separable) is provided
on Straight Line Method based on estimated life of the asset. Depreciation on asset
has been provided at the rates furnished below:
(a) Land
i) Land Freehold : Nil
ii) Land – Leasehold
1. Period of Leasehold - Perpetual : Nil
2. Other than above Over lease period
(b) Premises
i) Constructed on free hold land and on lease land where
lease period is above 40 years : 2.50%
ii) Constructed on lease land where lease
period is below 40 years : Over lease period
(c) Furniture and Fixtures : 10.00%
(d) Computer and Microprocessors (including Software) : 33.33%
(e) Motor Vehicles : 20.00%
(f) Office Equipments : 20.00%
(g) Furniture acquired under Residential Furnishing Scheme :
10.00%
(h) Electrical/electronic articles acquired under
Residential Furnishing Scheme : 20.00%
7.3. Fixed Assets individually costing Rs. 10000/- and below are to be fully depreciated
in the year of addition (Excluding assets purchased under RFS).
7.4. Depreciation on addition to assets is calculated for full period irrespective of the
date of addition.
7.5 Bank capitalizes item of Fixed Assets (property, plant and equipment) that qualifies
for recognition as an asset measured at its cost which includes its purchase price,
directly attributable costs of bringing the assets to its working condition, taxes,
after deducting trade discounts and rebates. On GST component included in
the cost of the item capitalized, Bank is not/will not claiming/claim Input Tax
Credit.
288 | Annual Report 2020-21
7.1. Fixed assets are carried at historical cost less accumulated depreciation.
7.2. Depreciation on assets (including land where value is not separable) is provided
on Straight Line Method based on estimated life of the asset. Depreciation on asset
has been provided at the rates furnished below:
(a) Land
i) Land Freehold : Nil
ii) Land – Leasehold
1. Period of Leasehold - Perpetual : Nil
2. Other than above Over lease period
(b) Premises
i) Constructed on free hold land and on lease land where
lease period is above 40 years : 2.50%
ii) Constructed on lease land where lease
period is below 40 years : Over lease period
(c) Furniture and Fixtures : 10.00%
(d) Computer and Microprocessors (including Software) : 33.33%
(e) Motor Vehicles : 20.00%
(f) Office Equipments : 20.00%
(g) Furniture acquired under Residential Furnishing Scheme :
10.00%
(h) Electrical/electronic articles acquired under
Residential Furnishing Scheme : 20.00%
7.3. Fixed Assets individually costing Rs. 10000/- and below are to be fully depreciated
in the year of addition (Excluding assets purchased under RFS).
7.4. Depreciation on addition to assets is calculated for full period irrespective of the
date of addition.
7.5 Bank capitalizes item of Fixed Assets (property, plant and equipment) that qualifies
for recognition as an asset measured at its cost which includes its purchase price,
directly attributable costs of bringing the assets to its working condition, taxes,
after deducting trade discounts and rebates. On GST component included in
the cost of the item capitalized, Bank is not/will not claiming/claim Input Tax
Credit.
288 | Annual Report 2020-21
