Notes on the financial statements
Particulars
31 March 2016
31 March 2015
Discount rate
8.00%
8.00%
Expected rate of return on plan assets
8.00%
7.75%
Salary Escalation
8.00%
7.75%
Attrition Rate
1%
1%
Retirement Age
60 Years
60 Years
The principal assumption used in determining gratuity benefit obligations for the Company’s plans are shown below:
(
`
in crores)
Particulars
31 March 2016
31 March 2015
Defined benefit obligation as at 1st April 2015
17.07
13.57
Interest Cost
1.36
1.09
Current service cost
2.07
1.85
Benefit paid
(0.78)
(0.45)
Past Service Cost – Vested Benefit
0.00
0.00
Actuarial losses on obligation
0.59
1.02
Defined benefit obligation as at 31st March 2016
20.31
17.07
Changes in the present value of the defined benefit obligation are as follows:
(
`
in crores)
Particulars
31 March 2016
31 March 2015
Fair value of plan assets as at April 1 2015
6.98
4.82
Return on Plan Assets
0.69
0.46
Contributions by employer
3.86
2.53
Benefits paid
(0.78)
(0.45)
Actuarial Gains / (losses)
(0.42)
(0.37)
Fair value of plan assets as at March 31, 2016
10.33
6.98
Changes in the fair Value of plan assets are as follows:
(
`
in crores)
Particulars
31 March 2016
31 March 2015
Fair Value of Plan Assets at the end of the year
10.33
6.99
Liability at the end of the year
20.31
17.07
Difference
9.98
10.08
Less: Unrecognised past service cost
NIL
NIL
Amount recognized in the Balance Sheet
Non – Current portion
9.31
9.73
Current portion
0.67
0.36
Total
9.98
10.09
Balance Sheet
Details of provision for Gratuity
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.
34. SEGMENTAL REPORTING:
The business activity of the company falls within one broad business segment viz. “Ceramic/ Vitrified Tiles” and substantially sale of
the product is within the country. The Gross income and profit from the other segment is below the norms prescribed in AS-17 of The
Institute of Chartered Accountants of India. Hence the disclosure requirement of Accounting Standard 17 of “Segment Reporting”
issued by the Institute of Chartered Accountants of India is not considered applicable.
121
Annual Report 2015-16
