77
Notes on Accounts
March 31, 2013
March 31, 2012
`
in million
`
in million
Current Service cost
13.83
11.21
Interest cost on benefit obligation
7.13
5.93
Net actuarial loss recognized in the year
6.61
5.56
Past service cost
–
–
Expected Return on Plan Assets
(1.99)
(1.12)
Net benefit expense
25.08
21.58
Profit and Loss account
Net employee benefit expense (recognized in Employee cost)
March 31, 2013
March 31, 2012
`
in million
`
in million
Fair Value of Plan Assets at the end of the period
23.86
24.35
Liability at the end of the period
111.17
86.59
Difference
87.32
62.24
Less: Unrecognised past service cost
–
–
Amount recognized in the Balance Sheet
87.32
62.24
Balance Sheet
Details of provision for Gratuity
March 31, 2013
March 31, 2012
`
in million
`
in million
Defined benefit obligation as at 1st April, 2012
86.59
67.77
Interest Cost
7.13
5.93
Current service cost
13.83
11.21
Benefit paid
(2.99)
(3.87)
Past Service Cost – Vested Benefit
–
–
Actuarial losses on obligation
6.61
5.56
Defined benefit obligation as at 31st March, 2013
111.17
86.60
Changes in the present value of the defined benefit obligation are as follows:
Accordingly, a provision of
`
30.3 Million has been made towards the loss of investment in the subsidiary.
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
`
135.34 Million (previous year 91.72 Million) has been included in the value of inventories as on
31.03.2013 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 recognized in the profit and loss account and the funded
status and amounts recognized in the balance sheet for the plan:
