Scheduleforming part of the Balance Sheet - Domain-b

The Indian Hotels Company Limited
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Notes on Consolidated Balance Sheet and Profit and Loss Account (Contd.)
iv. Compensated Absences
The Group has a scheme for compensated absences for employees, the liability for which is determined on the
basis of an actuarial valuation carried out at the end of the year.
v. Other Employee Benefits
Other benefits, comprising of Long Service Awards and Leave Travel Allowance, are determined on an undiscounted
basis and recognised based on the likely entitlement thereof.
(d) Fixed Assets:
Fixed assets are stated at cost, less depreciation/amortisation and impairment losses, if any. Cost includes expenses
incidental to the installation of assets and attributable borrowing costs.
(e) i) Depreciation:
Indian Entities
In respect of assets acquired before 16th December, 1993, depreciation is provided under the straight-line method, at
the rates and in the manner specified in Schedule XIV to the Companies Act, 1956, as existing prior to that date.
In respect of assets acquired on or after 16th December, 1993, depreciation is provided under the straight-line method
at the rates as specified in Schedule XIV to the Companies Act, 1956, as revised with effect from that date. In respect
of Leasehold Land, depreciation is charged over the unexpired period of the lease, commencing from the date the land
is put to use for commercial operations.
In respect of one subsidiary, depreciation is provided under the written down value method at the rates and in the
manner specified in Schedule XIV to the Companies Act, 1956, amounts in respect of which are not material.
International Entities
Assets are depreciated based on the estimated useful life determined by the Management of the respective
Subsidiaries, whereof the average rates of depreciation for each category are equal to or higher than the rates
prescribed in Schedule XIV to the Companies Act, 1956.
ii) Amortisation:
Intangible assets are amortised on a straight-line basis at rates specified below:
Leasehold Property Rights 6.67% *
Website Development Cost 20.00%
Cost of Customer Reservation System (including licensed software) 16.67%
Management Contract Acquisition Costs 5% to 33.33% **
Others
Service & Operating Rights 10.00%
Non-Compete Fees 14.29%
Lease Acquisition Costs of a Jointly Controlled Entity 5.00%
* - Over the term of the lease.
** - Based on the terms of the Contract.