Kesoram Industries Limited | Corporate Relations Website

2009-2010

2008-2009

2007-2008

Rs.

VI.

Actual Return on Plan Assets

10,07,66,138

13,99,027

2,96,77,176

31st March,
2010

31st March,
2009

31st March,
2008

VII.

Principal Actuarial Assumptions

(a)

Discount Rate (per annum)

7.50%

8.00%

(b)

Expected Rate of Return on
Plan Assets (per annum)

7.00%

8.00%

(c)

Salary Escalation

5.00%

6.00%

(d)

Inflation Rate

5.00%

6.00%

The estimates 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. The expected rate of return on plan assets is based on the portfolio of assets held, investment strategy and market scenario. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are reasonably diversified.

The Company’s interest as a venturer in jointly controlled entity (incorporated joint venture during the year) is:

Name	Country of Incorporation	Proportion of ownership interest as on 31st March, 2010	Proportion of ownership interest as on 31st March, 2009
Gondkhari Coal Mining Limited	India	45.46	–

The Company’s interest in the joint venture is reported as Long Term Investments (Schedule - 6) and stated at cost. The Company’s share of each of the assets, liabilities, income and expenses (each without elimination of the effect of transactions between the Company and Joint Venture) related to interest in joint venture are :-