Note 13

AS 10

Capital Work-in-Progress (CWIP)

General Instructions for Preparation of Statements

Tangible fixed assets in progress of construction aged by periods.

Capital Work-in-Progress (CWIP) Workings

Schedule III, Part I — Division I (Section PPE - item iii) — FY 2025-26

Definition

Tangible fixed assets that are in the process of construction or installation and are not yet ready for their intended use.

Recognition Criteria

Capitalized as CWIP when directly attributable costs are incurred for a qualifying asset before it reaches working condition. Depreciation is NOT charged on CWIP.

Measurement Principles

Measured at cost of construction, materials used, direct labor, and capitalized borrowing costs (AS 16) incurred up to the reporting date.