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Notes forming part of onancial statements (Contd.)
268
•
Annual Report 2016-17
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, 2017
March 31, 2016
Opening fair value of plan assets
505.45
303.04
Expected return / adjustment
40.00
29.35
Contribution by employer
234.97
204.95
Beneots paid
(68.56)
(49.79)
Actuarial gains / (losses)
-
17.90
Closing fair value of plan assets
711.86
505.45
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
553.27
516.95
Adjustment to opening balance
27.14
-
Interest cost
40.81
38.70
Current service cost
103.80
124.06
Beneots paid
(68.56)
(49.79)
Actuarial (gains) / losses on obligation
63.32
(76.65)
Closing deoned beneot obligation
719.78
553.27
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
(719.78)
(553.27)
Plan asset / (liability)
(7.92)
(47.82)
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 Company’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.