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Note 28.11 Employee benefits
(continued)
The assumptions used in determining the present value of obligation of the interest rate guarantee under
deterministic approach are:
Particulars
2015-16
2014-15
1 Mortality rate
Indian Assured Lives
Mortality (2006-08) Ultimate
Indian Assured Lives
Mortality (2006-08) Ultimate
2 Withdrawal rates
5% p.a. for all age groups
5% p.a. for all age groups
3 Rate of discount
7.80%
7.80%
4 Expected rate of interest
8.80%
7.99%
5 Retirement age
60 years
60 years
6 Guaranteed rate of interest 8.80%
8.75%
(
`
cr)
Expenses recognised for the year ended on March 31, 2016
(included in Note 25)
As at
March 31, 2016
As at
March 31, 2015
1 Defined Benefit Obligation
11.39
10.14
2 Fund
11.50
10.40
3 Net Asset | (Liability)
0.11
0.26
4 Charge to the Statement of Profit and Loss during the year
0.15
0.23
d)
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. Mortality rates
are obtained from the relevant data.
Unfunded Schemes
(
`
cr)
Particulars
Compensated absences
March 31, 2016 March 31, 2015
1 Present value of unfunded obligations
22.58
21.38
2 Expense recognised in the Statement of Profit and Loss
3.39
3.23
3 Discount rate (per annum)
7.80%
7.80%
4 Salary escalation rate (per annum)
7.75%
7.75%
Notes
to the Financial Statements