Linde India Ltd. announces an acquisition

The total cash consideration paid for the ASU acquisition cannot be quantified from the cited disclosures: the transaction value, payment date and commissioning status are not reported.

Expected accounting treatment

• At acquisition: the cash consideration would be recorded as an increase in property, plant and equipment or capital work-in-progress, with a corresponding reduction in cash. If payment remains outstanding, a payable would be recorded instead.
• Current balance-sheet reference: Linde India’s latest reported consolidated figures show cash and equivalents of Rs 110.45 Crores, no total debt, property, plant and equipment of Rs 2,072.8 Crores, and capital work-in-progress of Rs 1,342.8 Crores ^{[1] [2] [3]}.
• Upcoming quarter: if the ASUs are available for use during the quarter, the assets should move from CWIP into PPE and depreciation should begin from the date they are ready for intended use. If they are not yet commissioned, the expenditure would generally remain in CWIP and should not create a full-quarter depreciation charge.
• Depreciation schedule: the incremental charge would depend on the final capitalised cost, asset-wise useful lives, residual values, depreciation method and the exact date each ASU becomes operational. Therefore, the upcoming-quarter depreciation expense and revised closing PPE cannot be calculated reliably from the reported information. Linde India’s existing consolidated depreciation was Rs 62.41 Crores in Q1 FY27 ^[4].

The key accounting distinction is therefore cash paid versus asset commissioned: payment affects liquidity immediately, while depreciation affects earnings only once the ASUs are capitalised as assets available for use.

_Scope note: this comparison also included Tata Steel Ltd. (TATASTEEL), which the answer above does not cover. Ask about any of them for a full side-by-side._

The exact capacity addition cannot be established reliably from the cited evidence: the acquired ASUs’ nameplate capacity in Nm³/hr and the industrial-gases installed-capacity figure from the latest Annual Report are not reported in the material available for this answer.

Therefore:

• Acquired ASUs: capacity — N/D Nm³/hr
• Annual Report baseline: total installed industrial-gases capacity — N/D
• Revised total capacity: cannot be calculated

The calculation would be:

`Revised installed capacity = Annual Report installed capacity + acquired ASU nameplate capacity`

Accordingly, the addition would increase installed capacity by exactly the acquired ASUs’ rated Nm³/hr, but the absolute post-acquisition total cannot be quantified without those two source figures.