Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Notes on Consolidated Balance Sheet and Profit and Loss Account (Contd.)
2. Significant Accounting Policies:
The financial statements are prepared under the historical cost convention on an accrual basis and comply with the Accounting
Standards (AS) notified by the Companies (Accounting Standards) Rules, 2006. The preparation of financial statements
requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) as of the date of financial statements and the reported income and expenses during the
reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent
and reasonable. Future results could differ from these estimates. The significant accounting policies adopted in the presentation
of the Accounts are as under:-
(a) Sales:
Sales comprise sale of rooms, food and beverages, allied services relating to hotel operations, including net income
from telecommunication services and management and operating fees. Revenue is recognised upon rendering of the
service.
(b) Export Benefits Entitlement:
Export Benefits in the nature of Duty Credit Scrips are recognised in the Profit and Loss Account upon the actual
utilisation of Duty Credit Scrips.
(c) Employee Benefits:
i. Defined Contribution Schemes
Employee benefits arising out of contributions to recognised Provident Fund, Superannuation, Social Security
etc. paid/payable during the year are recognised in the Profit and Loss Account. The shortfall, if any, between the
return guaranteed by the statute and actual earnings of the Provident Fund is provided for and contributed to the
Fund.
The Group also has separate funded and unfunded schemes, which guarantee a minimum pension to certain
categories of employees. The Company accounts for the net present value of its obligation therein, based on an
independent external actuarial valuation carried out annually.
Certain international subsidiaries operate a defined contribution pension scheme and the pension charge
represents the amounts payable by them to the Fund.
ii. Gratuity
The Group has separate funded and unfunded schemes for gratuity benefits. In respect of funded schemes, annual
contributions are made to funds administered by the trustees and managed by insurance companies for amounts
notified by the said insurance companies. The group accounts for the net present value of its obligations for
gratuity benefits based on an independent external actuarial valuation, determined on the basis of the projected
unit credit method, carried out annually. Actuarial gains and losses are immediately recognised in the Profit and
Loss Account.
iii. Post Retirement Benefits
The net present value of the Group’s obligation towards post retirement pension scheme, wherever applicable, is
actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains and
losses are recognised immediately in the Profit and Loss Account.
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