GAMMON INDIA LIMITED

Disclosure under AS 7 for the year 2008-09 has been done only for the parent company and the Indian
Subsidiaries in the absence of similar disclosure information being available from the other component
companies in these financial statements especially the overseas subsidiaries and joint ventures. 2008-09
being the year of acquisition for many of the subsidiaries the data for such disclosures was not
arranged. The management is taking steps to align disclosures from all such subsidiaries in the future
years by active interactions with such companies.
24. Disclosure relating to Employee Benefits
As per Accounting Standard -15 “Employee Benefits” and as defined in the accounting standard the
summarized components of net benefit expense recognized (Gratuity) in the profit and loss account and
the funded status and amounts recognized in the balance sheet are given herein below :-
(Rs. In Millions)
Sr. No. Particulars 2008-09 2007-08 2006.07
I Change in Benefit Obligation
Liability at the beginning of the year. 53.00 38.80 -
Interest cost. 4.30 2.90 -
Current Service Cost. 6.30 4.40 -
Past Service Cost (Non Vested Benefit)
- - -
Past Service Cost (Vested Benefit) - - -
Benefit Paid (4.70) (6.10) -
Actuarial (gain)/loss on obligations 3.40 3.20 -
Curtailments and Settlements - - -
Liability at the end of the year 62.30 43.30 -
II. Fair Value of Plan Assets - - -
Fair Value of Plan Assets at the
beginning of the year
37.00 26.90 -
Expected Return on Plan Assets 3.20 2.30 -
Contributions 5.00 4.30 -
Benefit paid (4.70) (5.60) -
Actuarial gain/(loss) on Plan Assets - - -
Fair Value of Plan Assets at the end of
the year
40.50 27.90 -
Total Actuarial gain/(loss) to be
Recognised.
3.40 2.40 -
III. Actual Return on Plan Assets - - -
Expected Return on Plan Assets 3.20 2.30 -
Actuarial gain/(loss) on Plan Assets - - -
IV.
V.
Actual Return on Plan Assets 3.20 2.30 -
Amount Recognised in the Balance
Sheet.
- - -
Liability at the end of the year 62.30 43.30 -
Fair Value of Plan Assets at the end of
the year.
40.50 27.90 -
Difference 21.80 15.40 -
Unrecognised Past Service Cost. - -
Amount Recognised in the Balance
Sheet.
21.80 15.40 -
Expenses Recognised in the Income
Statement
- -
Current Service Cost 6.30 4.40 -
Interest Cost. 4.30 2.90 -
Expected Return on Plan Assets (3.20) (2.30) -
F
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