Statutory Reports
Corporate Overview
69th Annual Report 2013-14
164
Financial Statements
(Standalone)
NOTES FORMING PART OF FINANCIAL STATEMENTS
32. Defined benefit plans / long term compensated absences - as per actuarial valuations as on March 31, 2014.
Gratuity, Superannuation and BKY
Compensated Absences
Post-retirement Medicare scheme
2014
2013
2012 2011
2010
2014
2013
2012
2011
2010
2014
2013
2012
2011
2010
i
Components of employer expense
Current service cost
44.21
41.46
37.98
29.63
24.97
31.17
28.55
23.16
18.41
14.68
4.27
3.96
4.12 2.88
2.53
Interest cost
53.44
51.78
48.77
42.32
38.09
18.92
18.21
15.82
12.49
10.30
7.80
7.64
7.03
6.15
5.86
Expected return on plan assets
(48.06)
(46.24)
(43.69)
(39.56)
(35.46)
-
-
-
-
-
-
-
-
-
-
Actuarial (Gains) / Losses
3.63
(0.04)
9.50
53.84
46.23
(22.41)
2.58
17.81
34.05
22.92
2.97
0.71
(3.80)
4.21
(1.74)
Total expense recognised in the Statement of Profit
and Loss in Note 24, page 155 under item
:
53.22
46.96
52.56
86.23
73.83
27.68
49.34
56.79
64.95
47.90
15.04
12.31 7.35 13.24
6.65
(b) & (c)
(a)
(c)
ii Actual contribution and benefit payments for year
ended March 31,
Actual benefit payments
72.95
72.52
48.92
55.21
54.15
38.16
31.79
25.62
25.93
18.24
2.85
2.94
2.82
3.10
3.17
Actual Contributions
25.24
54.12
46.91
78.11
75.80
38.16
31.79
25.62
25.93
18.24
2.85
2.94
2.82
3.10
3.17
iii Net liability recognised in Balance Sheet as at March
31,
Present Value of Defined Benefit Obligation
690.29
682.38
652.56
606.73
534.60
235.89
245.72 230.14 198.97 159.95
108.64
96.42
88.66
84.13
73.99
Fair value of plan assets
604.45
624.60
587.21
547.03
483.02
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
(85.84)
(57.78)
(65.35)
(59.70)
(51.58)
(235.89)
(245.72) (230.14) (198.97) (159.95)
(108.64)
(96.42) (88.66) (84.13) (73.99)
Experience adjustment on plan liabilities
24.05
(20.20)
(1.05)
(33.21)
(3.35)
(4.97)
N/A
N/A
N/A
N/A
3.30
8.10
(3.87)
4.62
0.84
Experience adjustment on plan assets
21.40
18.52
(1.49)
1.55
(6.49)
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
682.38
652.56
606.73
534.60
485.95
245.72
230.14 198.97 159.95 130.29
96.42
88.66
84.13
73.99
70.51
Current service cost
44.21
41.46
37.98
29.63
24.97
31.17
28.55
23.16
18.41
14.68
4.27
3.96
4.12
2.88
2.53
Interest cost
53.44
51.78
48.77
42.32
38.09
18.92
18.21
15.82
12.49
10.30
7.80
7.64
7.03
6.15
5.86
Acquisitions/Transfer in/ Transfer out
0.98
(9.38)
-
-
-
0.65
(1.97)
-
-
-
0.03
(1.61)
-
-
-
Actuarial (gain) / losses
(17.77)
18.48
8.00
55.39
39.74
(22.41)
2.58
17.81
34.05
22.92
2.97
0.71
(3.80)
4.21
(1.74)
Benefits paid
(72.95)
(72.52)
(48.92)
(55.21)
(54.15)
(38.16)
(31.79) (25.62) (25.93) (18.24)
(2.85)
(2.94)
(2.82)
(3.10)
(3.17)
Present Value of DBO at the end of the year
690.29
682.38
652.56
606.73
534.60
235.89
245.72 230.14 198.97 159.95
108.64
96.42
88.66
84.13
73.99
v Change in fair value of assets during the year ended
March 31,
Plan assets at the beginning of the year
624.60
587.21
547.03
483.02
432.39
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Acquisitions/Transfer in/ Transfer out
0.90
(8.97)
-
-
-
-
-
-
-
-
-
-
-
-
-
Actual return on plan assets
26.66
64.76
42.19
41.11
28.98
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Actual Company contributions
25.24
54.12
46.91
78.11
75.80
38.16
31.79
25.62
25.93
18.24
2.85
2.94
2.82
3.10
3.17
Benefits paid
(72.95)
(72.52)
(48.92)
(55.21)
(54.15)
(38.16)
(31.79) (25.62) (25.93) (18.24)
(2.85)
(2.94)
(2.82)
(3.10)
(3.17)
Plan assets at the end of the year
604.45
624.60
587.21
547.03
483.02
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 (%)
6.75-9.20
6.75-8.35 6.75-8.50 6.75-8.50 6.75-8.50
9.20
8.35
8.50
8.50
8.50
9.20
8.35
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
6.00
5.00
4.00
4.00
4.00
vii The major categories of plan assets as percentage of
total plan assets
Debt securities
71%
73% 77% 75% 74%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Balance with approved Insurance companies
28%
24% 19%
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Balances with banks
1%
4% 4% 25% 26%
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 in assumed
Medical inflation rate
One percentage point increase in Medical
inflation rate
One percentage point decrease in Medical
inflation rate
2014
2013 2012 2011 2010
2014
2013 2012 2011 2010
Revised DBO as at March 31,
119.81
103.81 95.34 91.65 81.48
96.31
87.07
81.62
77.57
67.49
Revised service cost for the year
4.96
3.95 4.01 3.37 2.95
3.70
2.79
3.04
2.48
2.17
Revised interest cost for the year
8.55
8.20 7.66 6.79 6.47
7.15
6.67
6.46
5.60
5.33
(a)
Defined contribution plans -
The Company’s contribution to defined contribution plan aggregated
`
173.39
crores
(2012-13
`
170.45 crores) for the year ended March 31, 2014 has been recognised in the
Statement of Profit and Loss under note 24 page 155
(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
`
87.95 crores
to the funded pension plans in the year 2014-15.
(
`
in crores)
