Atul Ltd 2012-13

93 Notes to financial statements NOTE 27.11 EMPLOYEE BENEFITS (contd) Experience adjustments ( ` cr) Particulars 2012-13 2011-12 2010-11 2009-10 2008-09 Experience adjustments on: 1 (Gain) | loss on plan liabilities 1.35 (0.01) 3.82 2.96 0.29 2 (Gain) | loss on plan assets (0.29) 1.80 0.53 2.63 (2.18) The Company expects to contribute ` 1.92 cr to Gratuity fund in the year 2013-14. (b) Defined contribution plan: Amount of ` 8.24 cr (Previous year ` 6.97 cr) is recognised as expense and included in the Note 24 ‘Contribution to Provident and Other Funds’. (c) Provident Fund Liability: In case of certain employees, the Provident Fund contribution is made to a trust administered by the Company. In terms of the guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of Provident Fund liability based on the assumptions listed below and determined that there is no shortfall as at March 31, 2013 (Previous year ` 0.06 cr). The assumptions used in determining the present value of obligation of the interest rate guarantee under deterministic approach are: Particulars 2012-13 2011-12 1 Mortality rate Indian Assured Lives Mortality (2006-08) Ultimate LIC (1994-96) 2 Withdrawal rates 5% p.a. for all age groups 5% at younger ages reducing to 1% at older ages. 3 Rate of discount 8.00% 8.50% 4 Expected rate of interest 9.03% 8.40% p.a. increasing gradually to 8.75% p.a. over a period of 20 years. 5 Retirement age 60 years 58 or 60 years. 6 Guaranteed rate of interest 8.50% 8.25% ( ` cr) Expenses recognised for the year ended on March 31, 2013 (included in Note 24) As as March 31, 2013 As at March 31, 2012 1 'HÀQHG EHQHÀW 2EOLJDWLRQ 7.13 6.93 2 Fund 7.13 6.87 3 Net liability - 0.06 4 &KDUJH WR 6WDWHPHQW RI 3URÀW DQG /RVV GXULQJ WKH \HDU 0.21 0.40 (d) 7KH HVWLPDWHV RI IXWXUH VDODU\ LQFUHDVHV FRQVLGHUHG LQ DFWXDULDO YDOXDWLRQ WDNH DFFRXQW RI LQÁDWLRQ VHQLRULW\ promotion and other relevant factors, such as supply and demand in the employment market. Mortality rates are obtained from the relevant data. Unfunded Schemes ( ` cr) Particulars Compensated Absences March 31, 2013 March 31, 2012 1 Present Value of Unfunded Obligations 20.03 18.08 2 ([SHQVH UHFRJQLVHG LQ WKH VWDWHPHQW RI 3URÀW DQG /RVV 3.55 5.45 3 Discount Rate (p.a.) 8.00% 8.50% 4 Salary Escalation Rate (p.a.) 7.00% 6.50%