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131
annual
report
20
16-17
kajaria
ceramics
corporate
overview
management
reports
Financial
statements
33. Employee benefit plans
Defined Contribution Plans - General Description
Retirement benefits in the form of provident fund, superannuation fund and national pension scheme are defined contribution
schemes. The Company has no obligation, other than the contribution payable to the provident fund. The Company’s
contribution to the povident fund is
`
6.02 crores (31 March 2016
`
5.74 crores)
Defined Benefit Plans - General Description
Gratuity:
The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of
service or part thereof in excess of 6 months and is payable on retirement / termination / resignation. The benefit vests on
the employee completing 5 years of service. The Gratuity plan for the Company is a defined benefit scheme where annual
contributions are deposited to an insurer to provide gratuity benefits by taking a scheme of Insurance, whereby these
contributions are transferred to the insurer. The Company makes provision of such gratuity asset/liability in the books of
accounts on the basis of actuarial valuation as per the projected unit credit method. Plan assets also include investments and
bank balances used to deposit premiums until due to the insurance company.
(
`
in crores)
31 March 2017
31 March 2016 1 April 2015
Defined benefit obligation at the beginning of the year
20.32
17.08
13.57
Current service cost
2.63
2.07
1.85
Interest cost
1.52
1.36
1.09
Benefits paid
(0.83)
(0.78)
(0.45)
Actuarial (gain)/ loss on obligations - OCI
2.38
0.59
1.02
Defined benefit obligation at the end of the year
26.02
20.32
17.08
The following tables summarise the components of net benefit expense recognised in the statement of profit & loss and
the funded status and amounts recognised in the balance sheet for the gratuity plan:
Changes in the present value of the defined benefit obligation are, as follows:
(
`
in crores)
31 March 2017
31 March 2016 1 April 2015
Fair value of plan assets at the beginning of the year
10.34
6.99
4.82
Contribution by employer
3.76
3.86
2.53
Benefits paid
(0.83)
(0.78)
(0.45)
Expected Interest Income on plan assets
0.78
0.69
0.46
Acturial gain/(loss) on plan asset
1.35
(0.42)
(0.37)
Fair value of plan assets at the end of the year
15.40
10.34
6.99
Changes in the fair value of plan assets are, as follows:
(
`
in crores)
31 March 2017
31 March 2016 1 April 2015
Fair value of plan assets
15.40
10.34
6.99
Defined benefit obligation
26.02
20.32
17.08
Amount recognised in the Balance Sheet
10.62
9.98
10.09
Reconciliation of fair value of plan assets and defined benefit obligation:
Notes on the standalone financial statements
for the year ended 31 March 2017