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differences on such contracts are recognized in the
statement of profit and loss in the year in which the
exchange rates change. Any profit or loss arising on
cancellation or renewal of forward exchange contract
is recognized as income or as expense for the year.
Translation of Integral and Non-integral foreign
operation
The financial statements of an integral foreign operation
are translated as if the transactions of the foreign
operation have been those of the company itself.
In translating the financial statements of a nonintegral
foreign operation for incorporation in financial
statements, the assets and liabilities, both monetary
and non-monetary, of the non-integral foreign
operation are translated at the closing rate; income and
expense items of the non-integral foreign operation
are translated at exchange rates at the dates of the
transactions; and all resulting exchange differences are
accumulated in a foreign currency translation reserve
until the disposal of the net investment.
On the disposal of a non-integral foreign operation,
the cumulative amount of the exchange differences
which have been deferred and which relate to that
operation are recognised as income or as expenses in
the same period in which the gain or loss on disposal is
recognised.
When there is a change in the classification of a foreign
operation, the translation procedures applicable to the
revised classification are applied from the date of the
change in the classification.
n) Retirement and other employee benefits
i. Retirement benefits in the form of Provident Fund
and Pension Schemes are defined contribution
schemes and the contributions are charged to
the Profit and Loss account of the year when the
contributions to the respective funds are due. There
are no other obligations other than the contribution
payable to the respective funds.
ii. Gratuity of employees of Parent Company is a
defined benefit plan and provision in respect of it is
made as per actuarial valuation carried out as per
Projected Unit Credit method by an independent
actuary as at year end and is contributed to
Gratuity Fund created by the holding company of
the Parent Company. The liability towards gratuity
of certain employees of a Subsidiary Company is
ascertained based on demand received from Life
Insurance Corporation of India (LIC) with whom a
Group Gratuity Policy has been taken and is paid
to them. LIC has ascertained the gratuity liability
on actuarial valuation basis at the year-end. The
liability in respect of gratuity of employees of
other Subsidiary Companies and Joint Venture
Company is provided as per actuarial valuation as
per projected unit credit method carried out by an
independent actuary (ies) at the year end.
iii. Accumulated leave, which is expected to be utilized
within the next 12 months, is treated as shortterm
employee benefit. The Group measures the
expected cost of such absences as the additional
HT Media Limited
amount that it expects to pay as a result of the
unused entitlement that has accumulated at the
reporting date.
The Group treats accumulated leave expected to
be carried forward beyond twelve months, as longterm
employee benefit for measurement purposes.
Such long-term compensated absences are
o)
provided for based on the actuarial valuation using
the projected unit credit method at the year-end.
Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred.
The Company presents the entire leave as current
liability in the balance sheet, since it does not have
as unconditional right to defer its settlement for 12
months after the reporting date.
Provisions
A provision is recognized when the Group has a
present obligation as a result of past event and it is
probable that an outflow of resources will be required
to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted
to their present value and are determined based on
best estimate required to settle the obligation at each
Balance Sheet date. These are reviewed at each
Balance Sheet date and are adjusted to reflect the
current best estimates.
Provision for expenditure relating to voluntary retirement
is made when the employee accepts the offer of early
retirement and such provision amount is charged to
statement of profit and loss in the year of provision.
p) Income Taxes
Tax expense comprises current and deferred tax.
Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961 enacted in India and
tax laws prevailing in the respective tax jurisdictions
where the Group operates. Current income tax relating
to items recognized directly in equity is recognized in
equity and not in the statement of profit and loss.
Deferred Income Tax reflects the impact of timing
differences between taxable income and accounting
income originating during the current year and reversal
of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws
enacted or substantively enacted at the balance sheet
date. Deferred income tax relating to items recognized
directly in equity is recognized in equity and not in the
statement of profit and loss.
Deferred tax liabilities are recognized for all taxable
timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent
that there is reasonable certainty that sufficient future
taxable income will be available against which such
deferred tax assets can be realized. In situations
where the Group has unabsorbed depreciation or
carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by
convincing evidence that they can be realized against
future taxable profits.
At each balance sheet date the Group re-assesses
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