96
Kajaria Ceramics Limited
Annual Report
2012-13
25
YEARSOF
WORKINGWITH
ANATTITUDE
CELEBRATING
Notes on Accounts
34. 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:
31.03.2013
31.03.2012
Particulars
`
in million
`
in million
Current Service cost
13.83
11.21
Interest cost on benefit obligation
7.13
5.93
Net actuarial loss recognised 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
Statement of Profit and Loss account
Net employee benefit expense (recognised in Employee cost)
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
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:
Fair value of plan assets as at 1st April, 2012
24.35
25.60
Return on Plan Assets
2.50
1.12
Contributions by employer
–
1.50
Benefits paid
(2.99)
(3.87)
Actuarial Gains / (losses)
–
–
Fair value of plan assets as at 31st March, 2013
23.86
24.35
Changes in the fair Value of plan assets are as follows:
