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Notes forming part of consolidated onancial statements (Contd.)
204
•
Annual Report 2016-17
Changes in the present value of the deoned beneot obligation (recognized in Balance Sheet) are as follows:
(In
`
Million)
For the year ended
March 31, 2017
March 31, 2016
Opening deoned beneot obligation
561.74
516.95
Adjustment to opening balance
27.14
10.62
Interest cost
41.76
39.27
Current service cost
104.90
125.23
Past service cost
7.44
-
Beneots paid
(71.61)
(50.16)
Actuarial (gains) / losses on obligation
61.04
(80.17)
Closing deoned beneot obligation
732.41
561.74
Beneot asset/ (liability)
(In
`
Million)
As at
March 31, 2017
March 31, 2016
Fair value of plan assets
711.86
505.45
(/ess) : Deoned beneot obligations
(732.41)
(561.74)
Plan asset / (liability)
(20.55)
(56.29)
The Company expects to contribute the entire deocit to gratuity fund in onancial year 2017-18.
The major categories of plan assets as a percentage of the fair value of total plan assets:
As at
March 31, 2017
March 31, 2016
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, 2017
March 31, 2016
Discount rate
7.33%
7.86%
Increment rate
6.00%
6.00%
The estimates of future salary increases, considered in actuarial valuation, take account of inpation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
As at March 31, 2017, every percentage point increase / decrease in discount rate will affect the gratuity beneot obligation
by approximately
`
105.21 million /
`
129.43 million respectively.
As at March 31, 2017, every percentage point increase / decrease in rate of increase in compensation levels will affect
the gratuity beneot obligation by approximately
`
128.45 million /
`
106.11 million respectively.
Amounts for the current and previous year are as follows:
(In
`
Million)
As at
March 31, 2017
March 31, 2016
Plan assets
711.86
505.45
Deoned beneot obligation
(732.41)
(561.74)
(Deocit)
(20.55)
(56.29)
Experience adjustments on plan liabilities - /oss/ (gain)
61.04
(80.17)
Experience adjustments on plan assets - (/oss)/ gain
-
18.28