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93
Annual Report 2011-12
92 Kajaria Ceramics Limited
Notes on Accounts
OTHER NOTES ON ACCOUNTS
(CONTD...)
Notes on Accounts
(
`
in million)
35.
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
`
326.31 million has been made on regular income.
b) Deferred Tax:
The Company estimates the deferred tax charge using the applicable rate of taxation based on the impact of timing
differences between financial statements and estimated taxable income for the current year. The movement of
provision for deferred tax is given below:
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:
Particulars
Opening as at
Charge/(credit)
Closing as at
1.04.2011 during the year
31.03.2012
Depreciation
603.20
40.48
643.68
Net Deferred Tax Liability
603.20
40.48
643.68
OTHER NOTES ON ACCOUNTS
(CONTD...)
36. Related Party Disclosures:
In accordance with the Accounting Standards (AS-18) on Related Party Disclosures, where control exists and where key
management personnel are able to exercise significant influence and, where transactions have taken place during the
year, alongwith description of relationship as identified, are given below:-
A. Relationships
I.
Key Management Personnel:
Name
Designation
Sh. A. K. Kajaria
Chairman & Managing Director
Sh. Chetan Kajaria
Joint Managing Director
Sh. Rishi Kajaria
Joint Managing Director
Sh. B.K. Sinha
Director Technical
II. Key Management Personnel (Subsidiary Companies)
Name
Designation
Sh. Ramesh Bhai L. Patel
Director Soriso Ceramic Pvt Ltd
Sh. Manoj Bhai V. Kakasania
Director Soriso Ceramic Pvt Ltd
III. Associates/Enterprises over which key management personnel or their relatives are able to exercise significant
influence
Kajaria Infrastructure Ltd
Kajaria Exports Ltd
Dua Engineering Works Pvt Ltd
Malti Devi Kajaria Charitable Trust
Face Ceramics
Face Ceramics Pvt Ltd
Face Impex Pvt Ltd
(
`
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 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’.
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%