SUBSIDIARY COMPANIES - ITC Ltd

NOTES TO THE FINANCIAL STATEMENTS (Contd.)
SRINIVASA RESORTS LIMITED
As at As at
31st March, 2012 31st March, 2011
26. The Estimated Amount of Contracts remaining to be executed on Capital Account and
not provided for (Net of advances ` 72,30,336/- Previous Year ` 11,08,434/-)
27. Contingent Liability
Claims against the Company not acknowledged as debts :
1,43,62,036 29,53,873
i) Indirect Taxation Matters 19,85,698 19,85,698
ii) Direct Taxation Matters 17,86,570 13,10,283
28. Earnings in Foreign Exchange
* Includes ` 18,13,86,179/- (Previous Year - ` 21,05,47,557/-) being Earnings during the year
through International Credit Cards & Travel Agencies etc. as certified by Bankers.
29. Expenditure in Foreign Currency during the year
21,52,40,721 21,66,72,748
Hotel Reservation / Marketing Expenses 1,59,41,638 1,56,38,715
Technical & Consultancy Fees 4,16,822 12,83,389
30. Value of Imports during the year (CIF Basis)
1,63,58,460 1,69,22,104
Capital Goods 1,13,67,718 11,23,590
Other Goods 19,34,174 9,04,829
1,33,01,892 20,28,419
For the year ended For the year ended
31st March, 2012 31st March, 2011
31. Value of Consumption of Raw Materials, Stores & Supplies (`) % (`) %
(a) Raw Materials
Indigenous 6,41,73,818 100.00 6,19,50,321 100.00
Imported — — — —
(b) Stores & Supplies
6,41,73,818 100.00 6,19,50,321 100.00
Indigenous 1,54,57,829 88.88 1,41,88,684 94.01
Imported 19,34,174 11.12 9,04,829 5.99
1,73,92,003 100.00 1,50,93,513 100.00
32. The Company operates in one operating segment i.e., Hoteliering and within one geographical segment i.e. India.
33. The Company's significant lease arrangements are in respect of operating leases for residential premises. These leasing arrangements, which are cancellable, are
for a period of 11 months or longer and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged
as Rent under Note 24.
34. Employee Benefits :
a) As per Actuarial Valuations as on March 31, 2012 and recognised in the financial statements in respect of Employee Benefit Schemes :
For the year ended March 31, 2012 For the year ended March 31, 2011
Leave Leave
Gratuity Encashment Gratuity Encashment
Funded Unfunded Funded Unfunded
(`) (`) (`) (`)
I Components of Employer Expense
1 Current Service Cost 8,33,645 4,71,959 7,56,542 4,57,647
2 Interest Cost 3,95,382 1,01,518 3,46,239 58,319
3 Expected Return on Plan Assets (3,24,114) — (2,95,557) —
4 Curtailment Cost/(Credit) — — — —
5 Settlement Cost/(Credit) — — — —
6 Past Service Cost — — — —
7 Actuarial Losses/(Gains) 1,14,178 (5,38,237) (3,19,004) 27,776
8 Total expense recognised in the
statement of Profit & Loss Account 10,19,091 35,240 4,88,220 5,43,742
The Gratuity Expense has been recognised in “Contribution to Provident and Other Funds” and Leave Encashment in “Salaries/Wages and Bonus” under Note 23.
II Actual Returns 3,37,521 — 3,22,696 —
III Net Asset/(Liability) recognised in Balance Sheet
1 Present Value of Obligation 60,04,512 12,71,090 52,36,642 13,02,107
2 Fair Value on Plan Assets 37,12,693 — 37,09,295 —
3 Status [Surplus/(Deficit)] (22,91,819) (12,71,090) (15,27,347) (13,02,107)
4 Unrecognised Past Service Cost — — — —
5 Net Asset/(Liability) recognised in Balance Sheet (22,91,819) (12,71,090) (15,27,347) (13,02,107)
IV Change in Defined Benefit Obligations (DBO)
1 Present Value of DBO at the Beginning of Period 52,36,642 13,02,107 48,07,308 7,96,811
2 Current Service Cost 8,33,645 4,71,959 7,56,542 4,57,647
3 Interest Cost 3,95,382 1,01,518 3,46,239 58,319
4 Curtailment Cost/(Credit) — — — —
5 Settlement Cost/(Credit) — — — —
6 Plan Amendments — — — —
7 Acquisitions — — — —
8 Actuarial (Gains)/Losses 1,27,585 (5,38,237) (2,91,865) 27,776
9 Benefits Paid (5,88,742) (66,257) (3,81,582) (38,446)
10 Present Value of DBO at the End of Period 60,04,512 12,71,090 52,36,642 13,02,107
V Change in Fair Value of Assets
1 Plan Assets at the Beginning of Period 37,09,295 — 30,76,520 —
2 Acquisition Adjustment — (2,865) —
3 Expected Return on Plan Assets 3,24,114 — 2,95,557 —
4 Actuarial Gains/(Losses) 13,407 — 27,139 —
5 Actual Company Contribution 2,54,619 66,257 6,94,526 38,446
6 Benefits Paid (5,88,742) (66,257) (3,81,582) (38,446)
7 Plan assets at the End of Period 37,12,693 — 37,09,295 —
VI Actuarial Assumptions
1 Discount Rate (%) 8.00 8.00 8.00 8.00
2 Expected Return on Plan Assets (%) 9.15 — 9.15 —
VII
The estimates of future salary increases, considered in actuarial valuations take account of inflation, seniority, promotion and other relevant factors such as
supply and demand factors in the employment market.
Major Categories of Plan Assets as a % of the Total Plan Assets
1 Insurance Companies 100% — 100% —
VIII Basis used to determine the Expected Rate of Return on Plan Assets
The expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital
and optimised returns within acceptable risk parameters, the plan assets are well diversified.
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