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) Use of estimates
The preparation of financial statements in conformity
with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities, at
the date of the financial statements and the results of
operations during the reporting year end. Although
these estimates are based upon management’s best
knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in
the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.
c) Tangible assets
Value for individual Fixed Assets acquired from The
Hindustan Times Limited (the holding company) in
an earlier year and Subsidiary Company (HMVL)
from the Parent Company is allocated based on the
valuation carried out by independent experts.
Other Fixed Assets are stated at cost less accumulated
depreciation and accumulated impairment losses, if
any. Cost comprises the purchase price, borrowing
costs if capitalization criteria are met and any directly
attributable cost of bringing the asset to its working
condition for its intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset
is added to its book value only if it increases the future
benefits from the existing asset beyond its previously
assessed standard of performance. All other expenses
on existing fixed assets, including day-to-day repair and
maintenance expenditure and cost of replacing parts,
are charged to the statement of profit and loss for the
period during which such expenses are incurred.
From accounting periods commencing on or after
7 December 2006, the company adjusts exchange
differences arising on translation/ settlement of longterm
foreign currency monetary items pertaining to
the acquisition of a depreciable asset to the cost of the
asset and depreciates the same over the remaining life
of the asset.
Gains or losses arising from derecognition of fixed
assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognized in the statement of profit and loss
when the asset is derecognized.
Leasehold improvements represent expenses incurred
towards civil works, interior furnishings, etc on the
leased premises at various locations.
Depreciation
Depreciation on other assets (except those acquired
from the holding company) are provided on Straight
Line Method at the rates computed based on estimated
useful life of the assets, which are greater than or equal
to the corresponding rates prescribed in Schedule XIV
to the Companies Act, 1956.
Assets Rates(SLM) as per
schedule XIV
Leasehold Land Over the life of lease
HT Media Limited
Buildings 3.34% to 3.71%
Improvements to Over the life of lease not
Leasehold premises exceeding 10 years
Office equipments 4.75% to 42.92%
Plant & equipments 4.75% to 42.92%
Furniture & fittings 6.33% to 34.48%
Vehicles 9.5%
In respect of fixed assets acquired in an earlier year
from the holding company, which are estimated to
have lower residual lives than envisaged as per the
rates provided in Schedule XIV to the Companies
Act, 1956, depreciation is provided based on such
estimated lower residual life.
In respect of fixed assets (Plant & Machinery- printing
press) acquired during the year 2004-05 from the
holding company, depreciation is provided on straight
line method over estimated useful life of 5 years as
technically assessed by an independent expert.
In respect of fixed assets acquired by the Subsidiary
Company (HMVL) in the previous year from the
Parent Company, depreciation is provided as per the
useful lives of the assets estimated by the independent
valuer as mentioned below which are greater than
or equal to the corresponding rates prescribed in
Schedule XIV of the Companies Act, 1956.
Assets SLM Rates Schedule XIV
Rates (SLM)
Plant and
Machinery
5% to 47.50% 4.75%
Buildings
(Factory)
3.34% to 5.94% 3.34%
Furniture and
Fittings
6.33% to 47.50% 6.33%
IT Equipments 16.21% to
47.50%
16.21%
Office Equipment 4.75% to 47.50% 4.75%
Vehicles 23.75% 9.50%
Depreciation on other assets (except those acquired
by the Parent Company from its holding company) of
the parent company, HMVL (Subsidiary Company),
HTMECL (Subsidiary Company), HTDMHL
d)
(Subsidiary Company) HT Burda Media Limited
(Subsidiary Company), FEVL (a subsidiary through
subsidiary Company), HTMS (a subsidiary through
subsidiary Company), HTLCL (a subsidiary through
subsidiary Company), IESPL (Joint Venture) and
MMCPL (Joint Venture) is provided on Straight Line
Method at the rates computed based on estimated
useful life of the assets, which are greater than or equal
to the corresponding rates prescribed in Schedule XIV
to the Companies Act, 1956.
Assets costing below `5,000 each are fully depreciated
in the year of acquisition.
Intangibles
Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
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