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75
Annual Report 2011-12
74 Kajaria Ceramics Limited
Notes on Accounts
Notes on Accounts
34. Value of imported and indigenous raw material consumed and the percentage of each to total consumption:
# The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 are as per available information with the Company.
2011-12
2010-11
%
`
%
`
million
million
Imported
7.92
226.80
5.85
90.95
Indigenous
92.08
2,635.99
94.15
1,464.73
36.
As per policy of the Company for Directors and other senior employees, the Company has, during the year, paid a sum of
`
50 lacs on account of insurance premium under the employer employee policy obtained on the life of key directors and
the same lies debited under the head ‘Insurance Charges’. The policy may be assigned in the name of the insured in future.
In such an event of assignment of the policy, the same shall be treated as perquisite in the hands of the key personnel.
37.
Balances of certain debtors, creditors, loans and advances are subject to confirmation.
38.
In the opinion of the Management current assets, loans and advances have a value on realisation in the ordinary course
of business at least equal to the amount at which they are stated except where indicated otherwise.
39.
To comply with the guidance note on “Accounting Treatment of Excise Duty” issued by Institute of Chartered Accountants
of India, excise duty amounting to
`
91.72 million (previous year
`
56.55 million) has been included in the value of
inventories as on 31st March 2012 and the corresponding amount of Excise Duty payable has been included in other
liabilities. However, this accounting policy has no impact on the profit for the year.
40. Gratuity and Other Post-Employment Benefit Plans:
The Company has a defined benefit gratuity plan. Gratuity (being administered by a Trust) is computed as 15 days salary,
for every completed year of service or part thereof in excess of 6 months and is payable on retirement / termination /
resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the Company is a
defined benefit scheme where annual contributions are deposited to a Gratuity Trust Fund established to provide gratuity
benefits. The Trust Fund has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. The
Company makes provision of such gratuity asset/liability in the books of accounts on the basis of actuarial valuation as
per the Projected unit credit method. Plan assets also include investments and bank balances used to deposit premiums
until due to the insurance Company.
The following tables summarize the components of net benefit expense recognised in the profit and loss account and the
funded status and amounts recognised in the Balance Sheet for the plan:
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
On consideration of materiality, the entire liability has been classified as a ‘non current liability’.
41.
Tax Expense is the aggregate of current year income tax and deferred tax charged to the Profit and Loss Account for the year.
a) Current Year Charge:
Income Tax provision of
`
320 million has been made on regular income.
OTHER NOTES ON ACCOUNTS
(CONTD...)
OTHER NOTES ON ACCOUNTS
(CONTD...)
(
`
in million)
33. Earnings in Foreign Currency:
Year ended
Year ended
31.03.2012
31.03.2011
FOB Value of Exports (
`
)
129.36
137.60
(
`
in million)
35. Dues to Small, Micro & Medium Enterprises #:
Year ended
Year ended
31.03.2012
31.03.2011
1. Principal amount outstanding
323.76
230.74
2. Interest due on (1) above and the unpaid interest
–
–
3. Interest paid on all delayed payments under MSMED Act
–
–
4. Payment made beyond the appointed date during the year
–
–
5. Interest due and payable for the period of delay other than (3) above
–
–
6. Interest accrued and remaining unpaid
–
–
7. Amount of further interest remaining due and payable in succeeding years
–
–
(
`
in million)
Profit and Loss account
Net employee benefit expense (recognised in Employee cost)
Year ended
Year ended
31.03.2012
31.03.2011
Current Service cost
11.21
7.18
Interest cost on benefit obligation
5.93
3.99
Net actuarial loss recognised in the year
5.56
4.80
Past service cost
–
6.80
Expected Return on Plan Assets
(1.12)
(1.15)
Net benefit expense
21.58
21.62
Balance Sheet
Details of provision for Gratuity
Year ended
Year ended
31.03.2012
31.03.2011
Fair Value of Plan Assets at the end of the period
24.35
25.60
Liability at the end of the period
86.59
67.77
Difference
62.24
42.16
Less: Unrecognised past service cost
–
–
Amount recognised in the Balance Sheet
62.24
42.16
Changes in the present value of the defined benefit obligation are as follows:
Year ended
Year ended
31.03.2012
31.03.2011
Defined benefit obligation as at 1st April 2011
67.77
49.91
Interest Cost
5.93
3.99
Current service cost
11.21
7.18
Benefit paid
(3.87)
(5.04)
Past Service Cost – Vested Benefit
–
6.80
Actuarial losses on obligation
5.56
4.93
Defined benefit obligation as at 31st March 2012
86.60
67.77
Changes in the fair Value of plan assets are as follows:
Year ended
Year ended
31.03.2012
31.03.2011
Fair value of plan assets as at 1st April 2011
25.60
14.37
Return on Plan Assets
1.12
1.15
Contributions by employer
1.50
15.00
Benefits paid
(3.87)
(5.04)
Actuarial Gains / (losses)
–
0.12
Fair value of plan assets as at 31st March 2012
24.35
25.60
The principal assumption used in determining gratuity benefit obligations for the Company’s plans are shown below:
Year ended
Year ended
31.03.2012
31.03.2011
Discount rate
8.75%
8.25%
Expected rate of return on plan assets
4.48%
8.00%
Salary Escalation
7.75%
7.75%
Attrition Rate
1.00%
1.00%