Annual report (2010-11) - Essar

essAR poRts limited (formerly known as essar shipping ports & logistics limited)
(F) Category of plan assets:
AnnuAl RepoRt 2010-11 ¬ 34
(` in crore)
Percentage of each category Provident fund Gratuity-shore officers Gratuity-off shore officers CA-paid (non
of plan assets to total fair (funded) (funded) (non funded) leave funded)
value of plan assets: 31.03.11 31.03.10 31.03.11 31.03.10 31.03.11 31.03.10 31.03.11 31.03.10
Administered by Life Insurance
Corporation of India – – 100% 100% – – – –
Government of India security 25% 32% – – – – – –
Public sector bonds/TDRs 60% 48% – – – – – –
State government securities 15% 20% – – – – – –
(G) Actuarial assumptions
In accordance with Accounting Standard (AS) 15 (Revised), actuarial valuation as at the year end was done in
respect of the aforesaid defined benefit plans based on the following assumptions:
i) General assumptions:
Provident fund Gratuity-shore officers Gratuity-off shore officers CA-paid leave
Particulars (funded) (funded) (non funded) (non funded)
31.03.11 31.03.10 31.03.11 31.03.10 31.03.11 31.03.10 31.03.11 31.03.10
Discount rate (per annum)
Rate of return on plan assets
7.80% 7.80% 8.00% 7.80% – 7.80% 8.00% 7.80%
(for funded scheme)
Expected retirement age of
8.50% 8.50% 8.50% 8.50% NA N.A NA N.A
employees (years) 58 58 58 58 – 60 58 58
Separation rate of employees
Rate of increase in
– – 10.00% 10.00% – 7.00% 10.00% 10.00%
compensation – – 9.00% 9.00% – 9.00% 9.00% 9.00%
ii) Mortality rates considered are as per the published rates in the Life Insurance Corporation (1994-96)
Mortality table.
iii) Leave policy:
a) Sick leave balance as at the valuation date and each subsequent year following the valuation date
will be availed by the employee against future sick leave; the sick leave balance is not available for
encashment.
b) Leave balance as at the valuation date and each subsequent year following the valuation date
to the extent not availed by the employee is available for encashment on separation from the
Company up to a maximum of 120 days.
iv) As this is the third year of implementation of Accounting Standard (AS) –15 (Revised 2005), only
corresponding previous two year figure have been furnished.
v) The contribution to be made by the Company for funding its liability for gratuity during the financial year
2011–12 will be made as per demand raised by the fund administrator Life Insurance Corporation of
India.
11) Related party transactions:
a) Holding companies :
i) Essar Global Limited, Cayman Island, ultimate holding company
ii) Essar Shipping & Logistics Limited, Cyprus, immediate holding company
b) Subsidiaries:
i) Vadinar Oil Terminal Limited
ii) Essar Logistics Limited (upto September 30, 2010)