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Standalone Financials
163
CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS (46-122)
FINANCIALS
NOTESFORMINGPARTOFFINANCIAL STATEMENTS
33. Defined benefit plans/long term compensated abesences - as per actuarial valuations as on March 31, 2012.
(
`
in crores)
Gratuity, Superannuation and BKY
Compensated Absences
Post-retirement Medicare scheme
2012
2011
2010 2009
2008
2012
2011 2010 2009 2008
2012
2011 2010 2009 2008
i
Components of employer expense
Current service cost
37.98
29.63
24.97 25.24
21.60
23.16
18.41 14.68 14.85 12.80
3.47
2.88 2.53 1.97 1.80
Interest cost
48.77
42 . 32
38.09 37.42
34.65
15.82
12.49 10.30 10.69 9.60
7.03
6.15 5.86 4.72 4.19
Expected return on plan assets
(43.69)
(39.56)
(35.46)
(32.56)
(30.70)
-
-
-
-
-
-
-
-
-
-
Actuarial (gains) / losses
9.50
53.84
46.23 (4.26)
39.41
17.81
34.05 22.92 (9.80)
12.47
(3.80)
4.21 (1.74) 10.00 3.90
Total expense recognised in the
Profit and Loss Statement
52.56
86.23
73.83 25.84
64.96
56.79
64.95 47.90 15.74 34.87
6.70
13.24 6.65 16.69 9.89
in Note 24, page 154
under item :
(b) & (c)
(a)
(c)
ii
Actual contribution and benefit
payments for year ended
March 31,
Actual benefit payments
48.92
55.21
54.15 57.20
54.98
25.62
25.93 18.24 22.49 21.42
2.82
3.10 3.17 3.43 3.75
Actual contributions
46.91
78.11
75.80 22.18
87.98
25.62
25.93 18.24 22.49 21.42
2.82
3.10 3.17 3.43 3.75
iii
Net liability recognised in
Balance Sheet as at March 31,
Present value of defined
benefit obligation
652.56
606.73 534.60 485.95 474.36
230.14
198.97 159.95 130.29 137.04
88.66
84.13 73.99 70.51 57.25
Fair value of plan assets
587.21
547.03 483.02 432.39 424.45
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
Net liability recognised in
Balance Sheet
(65.35)
(59.70)
(51.58)
(53.56)
(49.91)
(230.14)
(198.97) (159.95) (130.29) (137.04)
(88.66)
(84.13) (73.99) (70.51) (57.25)
Experience adjustment on plan
liabilities
(1.05)
(33.21)
(3.35)
(37.27)
30.22
N/A
N/A N/A N/A N/A
(3.87)
4.62 0.84 2.21
-
Experience adjustment on plan
assets
(1.49)
1.55
(6.49)
10.41
(6.45)
N/A
N/A N/A N/A N/A
-
-
-
-
-
iv Change in Defined Benefit
Obligations (DBO) during the
year ended March 31,
Present value of DBO at the
beginning of the year
606.73
534.60 485.95 474.36 440.14
198.97
159.95 130.29 137.04 123.59
84.13
73.99 70.51 57.25 51.11
Current service cost
37.98
29.63
24.97 25.24
21.60
23.16
18.41 14.68 14.85 12.80
3.47
2.88 2.53 1.97 1.80
Interest cost
48.77
42.32
38.09 37.42
34.65
15.82
12.49 10.30 10.69 9.60
7.03
6.15 5.86 4.72 4.19
Actuarial losses
8.00
55.39
39.74
6.13
32.95
17.81
34.05 22.92 (9.80)
12.47
(3.80)
4.21 (1.74) 10.00 3.90
Benefits paid
(48.92)
(55.21)
(54.15)
(57.20)
(54.98)
(25.62)
(25.93) (18.24) (22.49) (21.42)
(2.82)
(3.10)
(3.17) (3.43)
(3.75)
Present value of DBO
at the end of the year
652.56
606.73 534.60 485.95 474.36
230.14
198.97 159.95 130.29 137.04
88.01
84.13 73.99 70.51 57.25
v Change in fair value of assets
during the year ended March 31,
Plan assets at the beginning
of the year
547.03
483.02 432.39 424.45 367.21
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
Actual return on plan assets
42.19
41.11
28.98 42.96
24.24
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
Actual Company contributions
46.91
78.11
75.80 22.18
87.98
25.62
25.93 18.24 22.49 21.42
2.82
3.10 3.17 3.43 3.75
Benefits paid
(48.92)
(55.21)
(54.15)
(57.20)
(54.98)
(25.62)
(25.93) (18.24) (22.49) (21.42)
(2.82)
(3.10)
(3.17) (3.43)
(3.75)
Plan assets at the end of the year
587.21
547.03 483.02 432.39 424.45
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
vi
Actuarial Assumptions
Discount rate (%)
6.75-8.50
6.75-8.50 6.75-8.50 6.75-850 7.75-8.50
8.50
8.50 8.50 8.50 8.50
8.50
8.50 8.50 8.50 8.50
Expected return on plan assets (%)
8.00
8.00
8.00
8.00
8.00
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
Medical cost inflation (%)
N/A
N/A
N/A N/A
N/A
N/A
N/A N/A N/A N/A
4.00
4.00 4.00 4.00 4.00
vii The major categories of plan
assets as percentage of total
plan assets
Debt securities
77%
7 5% 7 4% 7 6% 6 8%
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
Balances with banks
23%
2 5% 2 6% 2 4% 3 2%
N/A
N/A N/A N/A N/A
N/A
N/A N/A N/A N/A
viii Effect of one percentage point change
One percentage point increase
One percentage point decrease
in assumed medical inflation rate
in medical inflation rate
in medical inflation rate
2012
2011 2010 2009 2008
2012
2011 2010 2009 2008
Revised DBO as at March 31,
95.34
91 . 65 81 . 48 77 . 68 58 . 11
81.62
77 . 57 67 . 49 64 . 29 52 . 10
Revised service cost for the year
4.01
3.37 2.95 2.30 1.95
3.04
2.48 2.17 1.69 1.42
Revised interest cost for the year
7.66
6.79 6.47 4.79 4.63
6.46
5.60 5.33 4.28 3.80
(a)
Defined contribution plans-
The Company's contribution to defined contribution plan aggregated
`
165.25
crores (2010-11
`
144.97 crores) for the year ended March 31, 2012 has been recognised in the Profit and Loss
Statement under note 24 page 154.
(b) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.
(c) The assumption of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment
market.
(d) The Company expects to contribute
`
82.61
crores to the funded pension plans in the year 2012-13.
FINANCIAL HIGHLIGHTS (32-45)