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202
Sixty-Seventh Annual Report 2011-2012
(c) Details of defined benefit plans applicable to Jaguar and Land Rover group.
Particulars
Post-retirement
Post-retirement
pension scheme
medicare scheme
As at / for the year ended on March 31,
2012
2011
2010
2009
2012
2011 2010 2009
i
Components of employer expense
Current service cost
780.53
752.63 480.03 483.89
0.46
0.64 0.53 0.47
Interest cost
1,829.87
1,529.40 1,555.04 1,263.37
0.53
0.71 0.61 0.47
Expected return on plan assets
(1,833.99)
(1,711.20) (1,314.87) (1,713.44)
-
-
-
-
Amortisation of past service cost
112.99
35.41 13.63 -
-
- - -
Curtailment
-
- (5.45)
-
-
- - -
Settlement
-
(1.20)
-
-
-
- - -
Asset restriction
-
-
- (14.62)
-
- - -
Actuarial Losses
-
-
- 16.25
-
- - -
Total expense recognised in the
Profit and Loss Statement in Note 26, Page 194
under item (b):
889.40
605.04 728.38 35.45
0.99
1.35 1.14 0.94
ii
Actual Contribution and Benefit Payments
Actual benefit payments
866.72
910.70 826.05 563.68
-
- - -
Actual contributions
1,760.55
1,545.97 398.06 552.64
-
- - -
iii
Amount recognised in Pension Reserve
Actuarial loss
1,490.14
1,391.86 642.93 2,585.69
0.84
(4.39) 1.67 -
Movement in restriction of pension assets
(42.75)
888.67 (481.33) (959.22)
-
- - -
Onerous obligation
(37.41)
-
-
-
-
- - -
Economic benefit from pre payment of normal contribution
(266.44)
-
-
-
-
- - -
Deferred tax
(1,272.50)
-
-
-
-
- - -
Exchange fluctuation
-
- 102.13 (169.26)
-
- - -
Amount recognised in Pension Reserve
(128.96)
2,280.53 263.73 1,457.21
0.84
(4.39) 1.67 -
iv Net liability recognised in Balance Sheet
Present value of Defined Benefit Obligation
40,065.65
30,723.35 26,340.24 22,119.55
10.76
7.69 10.76 8.65
Fair value of plan assets
38,372.91
29,816.11 25,908.86 22,591.74
-
- - -
Restriction of pension asset
(229.00)
(235.84) (17.64) (290.37)
-
- - -
Unrecognised actuarial gains and losses
-
-
- (3.42)
-
- - -
Onerous obligation
(1,001.94)
(902.99) (233.72) (436.01)
-
- - -
Economic benefit from pre payment of normal contribution
284.52
(15.28) 5.10 -
-
- - -
Net asset recognised in balance sheet
15.49
6.72 3.06 261.67
-
- - -
Net (Liability) recognised in balance sheet
(2,654.65)
(2,068.07) (680.70) (519.28)
(10.76)
(7.69) (10.76) (8 .65)
Experience adjustment on plan liabilities
610.62
696 .80 4,404.25 241 . 26
-
-
-
-
Experience adjustment on plan assets
(1,392.44)
217 . 97 3,826.63 4,890.97
-
-
-
-
v Change in Defined Benefit Obligations (DBO)
Present value of DBO at beginning of year
30,723.35
26,340.24 22,119.55 -
7.69
10.76 8.65 -
Liability on Acquisition
-
-
- 26,595.11
0.46
- - 7.59
Current service cost
780.53
752.63 480.03 483.89
0.53
0.64 0.53 0.47
Interest cost
1,829.87
1,529.40 1,555.04 1,263.37
-
0.71 0.61 0.47
Amendments
51.53
35.41 12.25 -
-
- - -
Actual member contributions
112.99
46.39 147.81 237.87
0.84
- - -
Actuarial losses
2,797.44
1,608.01 4,902.21 (2,462.41)
-
(4.39) 1.67 (1.02)
Benefits paid
(866.72)
(910.70) (826.05) (563.69)
-
- - -
Expenses paid
(1.22)
(0.99) (0.15) (0.07)
-
- - -
Plan combinations
-
- 2.72 57.41
-
- - -
Plan curtailment
-
- (5.45)
-
-
- - -
Plan settlement
-
(9.42) (0.68)
-
-
- - -
Exchange rates
4,637.88
1,332.38 (2,047.04) (3,491.93)
0.80
(0.03) (0.70) 1.14
Present value of DBO at the end of year
40,065.65
30,723.35 26,340.24 22,119.55
10.32
7.69 10.76 8.65
vi Change in fair value of assets
Plan assets at beginning of year
29,816.11
25,908.88 22,591.74 -
N/A
N/A N/A N/A
Plan assets on acquisition
-
-
- 29,341.88
N/A
N/A N/A N/A
Actual return on plan assets
3,141.29
1,927.28 5,574.15 (3,520.28)
N/A
N/A N/A N/A
Actual Company contributions
1,760.55
1,545.97 398.06 552.64
N/A
N/A N/A N/A
Actual member contributions
51.53
46.39 147.81 237.87
N/A
N/A N/A N/A
Benefits paid
(866.72)
(910.70) (826.04) (563.68)
N/A
N/A N/A N/A
Expenses paid
(1.22)
(0.99) (0.15) (0.07)
N/A
N/A N/A N/A
Plan combinations
-
-
- 54.50
N/A
N/A N/A N/A
Plan settlement
-
(8.22) (0.68)
-
N/A
N/A N/A N/A
Exchange rates
4,471.37
1,307.50 (1,976.01) (3,511.12)
N/A
N/A N/A N/A
Plan assets at the end of year
38,372.91
29,816.11 25,908.88 22,591.74
N/A
N/A N/A N/A
vii Actuarial assumptions
Discount rate (%)
4.38-5.10
5.19- 5.50 5.50- 5.60 6.70-7.16
4.88
5.74 6.22 7.77
Inflation (%)
2.00-3.30
2.00-3.40 2.00-3.50 2.52-3.30
N/A
N/A N/A N/A
Expected return on plan assets (%)
4.85-6.34
5.75-6.57 6.50 5.80-6.40
N/A
N/A N/A N/A
Medical cost inflation (%)
N/A
N/A
N/A
N/A
4.50
4.20 7.80 4.90-8.10
viii The major categories of plan assets as percentage
to total plan assets
Equity securities
19%-38.4%
20%-40% 39%-53% 27%-36%
N/A
N/A N/A N/A
Debt securities
38.4%-67%
40%-63% 39%-56% 36%-62%
N/A
N/A N/A N/A
Other
8%-23.2%
2.4%-20% 1%-23% 3%-29%
N/A
N/A N/A N/A
(a) Defined contribution plans-
Jaguar and Land Rover group’s contribution to defined contribution plan aggregated
`
82.45 crores
(
`
24.03 crores for the year ended March 31, 2011)
has been recognised in the Profit and Loss Statement in note 26(b) on Page 194.
(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, take account of inflation, seniority, promotion and other relevant factors, such
as supply and demand in the employment market.
(d) The Company expects to contribute
`
336.67 crores
to the funded pension plans in the year 2012-2013.
NOTESFORMINGPARTOFCONSOLIDATEDFINANCIALSTATEMENTS
(
`
in crores)