Annual Report 2011 - 2012 - United Breweries Limited
Annual Report 2011 - 2012 - United Breweries Limited
Annual Report 2011 - 2012 - United Breweries Limited
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Notes to Financial Statements (contd.)<br />
Particulars<br />
(All amounts in Rs.lacs, unless otherwise stated)<br />
<strong>2012</strong> <strong>2011</strong> 2010 2009 2008<br />
Gratuity Provident<br />
Gratuity<br />
fund<br />
C) Reconciliation of present value of the obligation<br />
and the fair value of the plan assets<br />
Fair value of plan assets at the end of the year 1,656 4,334 1,639 1,542 1,331 1,365<br />
Present value of the defined benefit<br />
2,219 4,222 1,878 1,614 1,539 1,426<br />
obligations at the end of the period<br />
Liability recognised in the balance sheet (563) 112 (239) (72) (208) (61)<br />
D) Expenses recognised in Statement of Profit<br />
and Loss<br />
Service cost 326 680 249 84 131 435<br />
Interest cost 156 285 126 118 96 93<br />
Expected return on plan assets (128) (308) (125) (102) (107) (93)<br />
Prior Period adjustment — — — — — (237)<br />
Actuarial (gain)/ loss (11) (54) 55 14 62 62<br />
Total expenses recognised in Statement<br />
of Profit and Loss<br />
343 603 305 114 182 260<br />
E) Major category of Plan Assets as a % of<br />
total Plan assets<br />
Government Securities — 41% — — — —<br />
Corporate Bonds — 59% — — — —<br />
Fund balance with insurance companies 100% — 100% 100% 100% 100%<br />
F) Description of the basis used to determine<br />
the overall expected rate of return on assets<br />
including major categories of plan assets<br />
The expected return is calculated on the average fund balance based on the mix of investments and the<br />
expected yield on them.<br />
Actual return on plan assets 115 — 112 85 31 201<br />
G) Assumptions<br />
Interest rate 8.5% 8.5% 8.0% 8.0% 7.0% 8.0%<br />
Discount factor 8.5% 8.5% 8.0% 8.0% 7.0% 8.0%<br />
Estimated rate of return on plan assets 8.0% 8.25% 8.0% 8.0% 8.0% 8.0%<br />
Salary increase 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%<br />
Attrition rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%<br />
Retirement age 58 58 58 58 58 58<br />
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,<br />
promotion and other relevant factors such as supply and demand factors in the Employment market.<br />
As per the best estimate of management, Provident Fund contribution of Rs.875 (<strong>2011</strong>: Rs.850) and Gratuity<br />
contribution of Rs.400 (<strong>2011</strong>: Rs.350) is expected to be paid to the plans during the year ending March 31, 2013.<br />
(ii) Contribution to Provident and Other Funds (Note 29) includes Rs.1,172 (<strong>2011</strong>: Rs.928) being expenses<br />
debited under the following defined contribution plans<br />
Provident Fund 600 — 458 360 282 288<br />
Superannuation fund and National Pension 229 — 165 131 109 94<br />
scheme<br />
Total 829 — 623 491 391 382<br />
55
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