| NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009 | ||||
| 15.A. | In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans, since the employer is obligated to meet interest shortfall, if any, with respect to covered employees. According to the management, in consultation with Actuary, actuarial valuation cannot be applied to reliably measure provident fund liabilities in absence of guidance from Actuarial Society of India. Accordingly, the Parent Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the ASB Guidance, however, having regard to the position of the Fund (for covered employees) and confirmation from the Trustees' of such Fund there is no shortfall as at the year end. |
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| 15.B. | In keeping with the Parent Company's gratuity scheme (a defined benefit plan), eligible employees are entitled to gratuity benefit (at one half months eligible salary for each completed year of service) on retirement / death / incapacitation / termination. Also refer Note 1 (j) for accounting policy relating to gratuity. Following are the further particulars with respect to gratuity : | |||
| 2008-2009 | ||||
| Rs. | ||||
| I. | Reconciliation of opening and
closing balances of the present value of the Defined Benefit Obligation |
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| a. | Present Value of Obligation at the beginning of the year | 47,00,50,924 | ||
| b. | Current Service Cost | 3,30,26,132 | ||
| c. | Interest Cost | 3,37,82,502 | ||
| d. | Actuarial Loss | 36,57,471 | ||
| e. | (Benefits Paid) | (3,92,35,112) | ||
| f. | Present Value of Obligation at the end of the year | 50,12,81,917 | ||
