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Annual Report 2011-12
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012
1. Corporate Information
HT Media Limited (the Company) is a public company
registered in India and incorporated under the provisions
of the Companies Act, 1956. It’s share are listed on the
National Stock Exchange and Bombay Stock Exchange.
The Company publishes ‘Hindustan Times’, an English
daily, and ‘Mint’, a Business paper daily except on Sunday
and undertakes commercial printing jobs. The Company is
also engaged into the business of providing entertainment,
radio broadcast and all other related activities through its
Radio Stations operating under brand name ‘Fever 104’ in
cities of Delhi, Mumbai, Kolkata and Bangalore.
The Company derives revenue primarily from the sale
of the above mentioned publications, advertisements
published therein, by undertaking printing jobs and
airtime advertisements aired at the aforesaid radio stations.
The Company also derives revenue from the internet
business, by displaying advertisements on its websites,
‘hindustantimes.com’ and ‘livemint.com’.
2. Basis of preparation
The financial statements of the company have been
prepared in accordance with Generally Accepted Accounting
Principles in India (Indian GAAP). The Company has
prepared these financial statements to comply in all material
aspects with the Accounting Standards notified under
the Companies (Accounting Standards),Rules 2006, (as
amended) and the relevant provisions of the Companies
Act, 1956. The financial statements have been prepared on
an accrual basis and under the historical cost convention
except in case of assets for which provision for impairment
is made and revaluation is carried out.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except
for the change in accounting policy explained below:
2.1 Statement of Significant Accounting Polices
a) Change in accounting policy
Presentation and disclosure of financial statements
During the year ended 31 March 2012, the revised
Schedule VI notified under the Companies Act 1956,
has become applicable to the Company, for preparation
and presentation of its financial statements. Except
accounting for dividend on investments in subsidiary
companies the adoption of revised Schedule VI does not
impact recognition and measurement principles followed
for preparation of financial statements. However, it has
significant impact on presentation and disclosures made
in the financial statements. The Company has also
reclassified the Previous year figures in accordance with
the requirements applicable in the current year.
b) 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 assets and liabilities and disclosure
of contingent liabilities, at the date of the financial
statements and of the result of operations during
the reporting period 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.
50
c) Tangible assets
Value for individual Fixed Assets acquired from ‘The
Hindustan Times Limited’ (the holding company) in an
earlier year 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 the 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-today
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.
d) Depreciation
Depreciation on fixed assets (other than those acquired
from the holding company in earlier years) are provided
on a 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.
The Company has used the following rates to provide
depreciation on its fixed assets.
Assets Rates (SLM) Rates (SLM) as
per Schedule XIV
Buildings 3.34% to 3.71% 3.34%
Plant & machinery 4.75% to 42.92% 4.75%
Office Equipments 4.75% to 47.50% 4.75%
Furniture & fittings 6.33% to 34.48% 6.33%
Vehicles 9.50% 9.50%
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.