Non-Current Assets
Assets a company expects to hold and use for more than twelve months, such as plant, buildings, intangibles and long-term investments.
Formula
Non-Current Assets = Property, Plant and Equipment + Capital Work in Progress + Intangibles + Long-Term Investments + Other Non-Current Assets
Unit
₹ crore
In depth
Non-current assets are the productive base of the business and are carried at cost less accumulated depreciation, so their book value drifts further from economic reality the older they are. A company with fully depreciated but still-productive assets shows a small asset base and a flattering return on assets, while one that has just built a new plant shows the reverse. Large balances in capital work in progress deserve attention because they carry no depreciation and generate no revenue until commissioned. Growth in non-current assets without matching growth in revenue is a signal that capital is being deployed without return.
Worked example
A plant bought for ₹500 crore fifteen years ago and fully depreciated appears at close to zero while still producing. Return on assets looks excellent, but replacing that plant at today's cost would require far more than the balance sheet suggests.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Non-Current Assets” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.