MY QUESTION IS REGARDING DEPRECIATION
Question:In income statement many times the maintenance charges are deducted.(ie maintenance of machinery,maintenance of building).Now often it varies from the depreciation charges for the year.My question is since depreciation is a not physically paid out,it is an amount that is held by the company,even though it is not shown in the balance sheet.
PART 1:What does the company do with this depreciation money,which is not reflected on the balance sheet?(it is not reflected in the netblock)Please answer
PART2:If let us say that the depreciation charged for the year is 15 crore and already the maintenance charges are deducted in the income statement,what is the purpose of depreciation?Is it only to claim tax benefits?Or is their any other reason.
PART3:If the company is already maintaining the plant,then technically the net income of the company is more by 15 crore(the depreciation charge).Then are companies more profitable than they look?
SPECIFICALLY I WANT AN OPINION REGARDING EVER READY INDUSTRIES annual report 2017 page 144.Clearly the other expenses include repairs and maintainence of plant ,machinery and software.Then what is the point of a seperate depreciation charge of 15 crore on the income statement?