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Explanation: Gross Block refers to the total book value of tangible assets owned by a company before considering any depreciation. It includes the original cost of acquiring or constructing assets a company owns that are expected to be used for more than one year such as land, buildings, machinery, equipment, and vehicles. Gross Block represents the historical investment made by the company in its tangible assets, regardless of their current market value or depreciation status.
Example: TCS has a gross block of 48,474 crore rupees as of FY23. This indicates that the total book value of TCS’s tangible assets, before accounting for depreciation, is 48,474 crore rupees. The gross block provides insight into the scale of investment made by TCS in acquiring and developing its tangible assets over time. While the gross block represents the original cost of these assets, it does not reflect their current market value or their contribution to the company’s ongoing operations. Understanding the gross block helps investors assess the extent of the company’s capital investment in tangible assets and its overall asset base.
You can view the Gross Block value for any company on Radar under Non Current Assets in the Balance Sheet section.