Impairment is like valuating the assets i.e. machinery and other things to market value to current period. As a result company can show it up as loss incurred. One question here in this case is, the recent capex has been written as impairment- which shows company lack of understanding the macro situation and capex done at wrong time. Company is writing of half value of assets now and half value of assets once new sites start making money.
As a result reserves are going to decrease for now.
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