Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Notes on Consolidated Balance Sheet and Profit and Loss Account (Contd.)
(f) Transactions in Foreign Exchange:
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.
In respect of integral foreign operations:-
i) Monetary items outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the Balance
Sheet date and the resultant difference is recognised as income or expense.
ii) Non-monetary items outstanding at the Balance Sheet date are reported using the exchange rate prevailing on the
date of the transaction.
In respect of non-integral foreign operations :-
Both monetary and non-monetary items are translated at the closing rate and the resultant difference is
accumulated in a Foreign Currency Translation Reserve, until the disposal of the net investment.
(g) Derivative Instruments:
The Group has an exposure to derivative contracts in the nature of currency and interest rate swaps, which are in
respect of some of the underlying borrowings. Exchange differences arising on repayment/revaluation of such swaps
are recognised as income or expense in the period in which they arise.
(h) Impairment of Assets:
Impairment is ascertained at each Balance Sheet date in respect of the Group’s fixed assets. An impairment loss is
recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the
greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value, based on an appropriate discount factor.
(i) Assets taken on lease:
i) In respect of finance lease arrangements, the assets are capitalised and depreciated. Finance charges are debited to
the Profit and Loss Account of the year in which they are incurred.
ii) Operating Lease payments are recognised as expenditure in the Profit and Loss Account on a straight line basis,
representative of the time pattern of benefits received from the use of the assets taken on lease.
(j) Inventories:
Stock of food and beverages and operating supplies are carried at cost (computed on weighted average basis) or Net
Realisable Value, whichever is lower.
(k) Investments:
i) Long term investments are carried at cost. However, provision is made for diminution in value, other than tempo
rary, on an individual basis.
ii) Current investments are carried at the lower of cost and fair value, determined on a category-wise basis.
(l) Miscellaneous Expenditure:
Payments made under the Voluntary Retirement Scheme, including the additional liabilities towards leave encashment
and gratuity, arising pursuant to the Voluntary Retirement Scheme, are amortised over a period of 60 months, commencing
from the month in which the Scheme is implemented, or upto 31 st March, 2010, whichever is earlier.
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