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Shaping the future of software driven business
Consolidated Financials •
241
Notes forming part of consolidated financial statements (Contd.)
Balance sheet
Changes in the fair value of plan assets (recognized in the Balance Sheet) are as follows:
In
`
Million
For the year ended
March 31, 2019
March 31, 2018
Opening fair value of plan assets
773.89
711.86
Expected return
60.96
52.40
Adjustment to expected return
(4.96)
3.60
Contribution by employer
85.95
72.75
Benefits paid
(84.52)
(66.72)
Closing fair value of plan assets
831.32
773.89
Changes in the present value of the defined benefit obligation (recognized in Balance Sheet) are as follows:
In
`
Million
For the year ended
March 31, 2019
March 31, 2018
Opening defined benefit obligation
745.50
732.41
Interest cost
55.82
51.79
Current service cost
156.88
169.93
Benefits paid
(84.52)
(68.67)
Actuarial (gains) / losses on obligation
70.51
(139.70)
Exchange difference
(1.33)
(0.26)
Closing defined benefit obligation
942.86
745.50
Benefit asset/ (liability)
In
`
Million
As at
March 31, 2019
March 31, 2018
Fair value of plan assets
831.32
773.89
(Less) : Defined benefit obligations
(942.86)
(745.50)
Plan asset / (liability)
(111.54)
28.39
The Company expects to contribute the entire deficit to gratuity fund in financial year 2019-20.
The major categories of plan assets as a percentage of the fair value of total plan assets:
As at
March 31, 2019
March 31, 2018
Investments with insurer including accrued interest
100%
100%
The principal assumptions used in determining gratuity for the Group’s plans are shown below:
As at
March 31, 2019
March 31, 2018
Discount rate
7.60%
7.87%
Increment rate
5.50%
5.00%