Annual Report 2012-2013 - UB Group

Notes to the Financial Statements (contd.)
Details of Gratuity cost
Service cost 10.343 7.064
Interest cost 3.663 4.369
Expected return on plan assets (4.113) (5.028)
Actuarial (gain) / loss 3.544 8.357
Net gratuity cost 13.437 14.763
Actual return on plan assets 4.941 1.235
Description of the basis used to determine the overall expected rate of return on assets including major categories
of plan assets.
The expected return is calculated on the average fund balance based on the mix of investments and the expected
yield on them.
Assumptions
Interest rate 8.50% 8.50%
Discount factor 8.50% 8.50%
Estimated rate of return on plan assets 8.00% 8.00%
Salary Increase 5.00% 5.00%
Attrition rate 5.00% 1.00%
Retirement age 58 58
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors such as supply and demand factors in the employment market.
50. Details of dues to Micro, Small and Medium Enterprises and Small Scale Industries.
Based on the response received by the Company, there are no outstanding as at March 31, 2013 to suppliers, as
defined under the Micro, Small & Medium Enterprises Development Act, 2006.
51. The Company has recognized the rent from cancellable operating leases in accordance with the terms of the lease
deed.
In respect of the non- cancellable operating leases, the Company recognizes the rent on a straight line basis over
the non- cancellable lease term.
Future minimum lease payments receivable under non-cancellable operating lease ` nil (Pr year ` nil)
52. The gross carrying amount, accumulated depreciation and net carrying value of leased building are as follows:
Description 2012-13 2011-12
Gross block at the beginning of the year 457.716 507.320
Less: Deletion 2.621 455.095 49.604 457.716
Accumulated depreciation 124.268 116.778
Less: Deletion 0.524 123.744 9.921 106.857
Net block at the end of the year 331.351 350.859
53. Deferred tax
Particulars 2012-13 2011-12
Deferred Tax Asset in respect of
i) Depreciation of fixed assets 2.169 2.988
ii) Allowance for carried forward losses 50.525 53.190
iii) Others 14.701 13.365
Total 67.395* 69.543*
Note :
* Deferred tax asset is not recognized as a matter of prudence.
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