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Atul Ltd | Annual Report 2014-15
NOTE 28.11 EMPLOYEE BENEFITS
(continued)
(
`
cr)
Particulars
2014-15
2013-14
Gratuity
Gratuity
5 Actuarial assumptions:
a) Discount rate
7.99%
9.29%
b) Rate of return on plan assets
7.99%
8.70%
c) Salary escalation rate
7.75%
7.00%
6 Net asset | liability recognised in the Balance Sheet
Defined benefit obligation
44.44
41.79
Plan assets
44.44
41.79
Deficit | (Surplus)
–
–
Experience adjustments in plan liabilities
(1.66)
2.18
Experience adjustments in plan assets
(1.90)
0.06
Experience adjustments
(
`
cr)
Particulars
2014-15 2013-14 2012-13 2011-12 2010-11
Experience adjustments on:
1 (Gain) | Loss on plan liabilities
(1.66)
0.40
1.35
(0.01)
3.82
2 (Gain) | Loss on plan assets
(1.90)
(0.06)
(0.29)
1.80
0.53
The Company expects to contribute
`
2.10 cr to Gratuity Fund in the year 2015-16.
b) Defined contribution plan:
Amount of
`
8.48 cr (Previous year:
`
8.53 cr) is recognised as expense and included in the Note 25 ‘Contribution
to Provident and Other funds’.
c) Provident Fund liability:
In case of certain employees, the Provident Fund 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 no
shortfall as at March 31, 2015.
The assumptions used in determining the present value of obligation of the interest rate guarantee under
deterministic approach are:
Particulars
2014-15
2013-14
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%
9.29%
4 Expected rate of interest
7.99%
8.98%
5 Retirement age
60 years
60 years
6 Guaranteed rate of interest 8.75%
8.50%
(
`
cr)
Expenses recognised for the year ended on March 31, 2015
(included in Note 25)
As at
March 31, 2015
As at
March 31, 2014
1 Defined Benefit Obligation
–
7.44
2 Fund
–
7.44
3 Net liability
–
–
4 Charge to the Statement of Profit and Loss during the year
–
–
Notes
to the Financial Statements