Atul-2011-12

Notes

to financial statements

(b) Defined contribution plan:

Amount of

6.97 cr (Previous year

6.21 cr) is recognised as expense and included in the Note 24 ‘Contribution

to Provident and Other Funds’.

(c) Provident Fund Liability:

In case of certain employees, the Provident Find contribution is made to a trust administered by the Company.

In terms of the guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation

of Provident Fund liability based on the assumptions listed below and determined that there is shortfall of

0.06 cr as at March 31, 2012. This amount is provided by the Company in 2011-12.

The assumptions used in determining the present value of obligation of the interest rate guarantee under

deterministic approach are:

Particulars

2011-12

2010-11

1 Mortality rate

LIC (1994-96)

2 Withdrawal rates

5% at younger ages reducing to 1%

at older ages.

3 Rate of discount

8.50%

4 Expected rate of interest

8.40% p.a. increasing gradually to

8.75% p.a. over a period of 20 years.

5 Retirement age

58 or 60 years.

6 Guaranteed rate of interest

EPFO will enhance the rate of interest

to 8.60% in 2012-2013 which will

gradually increase to 8.75%

Experience adjustments

(

cr)

Particulars

2011-12

2010-11

2009-10

2008-09

Experience adjustments on:

1 (Gain) | loss on plan liabilities

0.01

3.82

2.96

0.29

2 (Gain) | loss on plan assets

1.80

0.53

2.63

(2.18)

(

cr)

Expenses recognised for the year ended on March 31, 2012 (included in Note 24)

1 Defined benefit obligation as at 31-03-2012

6.93

2 Fund as at 31-03-2012

6.87

3 Net Liability

0.06

4 Charge to Statement of Profit and Loss for the

year ended 31-03-2012

0.40

(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.

(e)

Amount recognised as an expense in respect of compensated leave absences is

5.45 cr (Previous year

2.42 cr).