DEPRICIATION COST OF MANUFACTURING SECTOR

PRESENTED BY – Dipanway Bhabuk

In 2012-13 the share of manufacturing sector in the GDP declined to 15.2 % compared to 15.7 % in the previous financial year.

The contribution of manufacturing sector in the countries GDP may fall below 15 % in 2013-14 owing to demand slowdown.

Gross Domestic Product

Why, Where and Purpose of Depreciation

Why

Where

Depreciation

Purpose

Depreciation occurs due to wear and tear, usage, obsolescence through technology.

Plant & Machinery, Furniture & Fixtures

Ascertainment of True Profit & Loss,Cost Of Production, Valuation of Assets,Replacement of Assets

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.

Accounting estimates the decrease in value using the information regarding the useful life of the asset.

What is DEPRICIATION COST

TYPES :

Written down value (WDV) method of Depreciation

Straight line method (SLM) of Depreciation

The value of an asset after accounting for

depreciation or amortization. Written Down Value is

also called Book Value or Net Book Value

WRITTEN DOWN VALUE METHOD

The simple and most commonly used depreciation method, straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the assets can be reasonably affect the company.

STRAIGHT LINE METHOD

Depreciation of TATA STEEL

TATA STEEL 2014-13 2013-12 2012-11

Total revenue 42,498.67 39,101.47 34,819.89

Total Assets 24,064.43 24,650.54 11,142.36

Depreciation 1,780.00 1,568.80 1,095.83

Percentage change of depreciation on Total Assets

7.40 % 6.36 % 9.83 %

Change in Revenue 3,397.20 4,281.58 __

Change in Assets -586.11 13,508.18 __

Change in Depreciation 211.20 472.97 __

Depreciation of JWS STEEL

JSW STEEL 2014-13 2013-12 2012-11

Total revenue 42,498.67 35,491.81 32,122.66

Total Assets 37,225.12 27,604.47 27,071.63

Depreciation 2,725.88 1,973.89 1,708.17

Percentage change of depreciation on Total Assets

7.32 % 7.15 % 6.31 %

Change in Revenue 7,006.86 3,369.15 __

Change in assets 9,620.65 532.84 __

Change in depreciation 751.99 265.72 __

Depreciation of L & T

L & T 2014-13 2013-12 2012-11

Total revenue 62,724.16 54,508.80 45,053.33

Total Assets 8,219.00 7,528.00 6,569.06

Depreciation 819.42 700.45 600.28

Percentage change of depreciation on Total Assets

9.18 14.60

Change in Revenue 8,215.36 9,455.47

Change in assets 691.00 955.94

Change in depreciation 118.97 100.17

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TATA Steel JWS Steel L & T

2013-14

2012-13