Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Schedule forming part of the Balance Sheet
Schedule 14 : Notes to the Balance Sheet and the Profit and Loss Account
v. Compensated Absences
The Company 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.
vi. Other Employee Benefits
Other benefits comprising of Long Service Awards and Leave Travel Allowances 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) Depreciation/Amortisation:
In respect of assets acquired before 16 th 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 16 th December, 1993, depreciation is provided 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 operation.
Intangible assets are amortised on a straight-line basis at rates specified below:
Website Development Cost - 20.00%
Cost of Customer Reservation System (including licensed software) - 16.67%
Service & Operating Rights - 10.00%
(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 at the date of the
transactions.
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 Company has an exposure to derivative contracts in the nature of currency swaps which are in respect of some of
the underlying rupee borrowings. Exchange differences arising on repayment/revaluation of such currency swaps are
recognised as income or expense in the period in which they arise.
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