Annual Report for 2012-13 - Mangalore Refinery and ...

Mangalore Refinery and Petrochemicals Limited
NOTE :31 OTHER DISCLOSURES
31.01 Intangible Assets - Research & Development (AS-26)
The company during the year has carried out activities relating to Gas
Chromatographic methods development, Bitumen Emulsion formulations,
Reduction of Phenolic and Sulphidic odour in the spent caustic,
Ammoniacal and nitrate Nitrogen reduction in the treated effl uent, Detailed
Crude assay analysis, Crude Compatibility Study, Synthesis of value
added product for HSD lubricity improving application, as a part of its R
& D activities and has incurred expenditure as mentioned below. These
expenditure are booked in respective natural heads of expenditure
(` in Million)
Particulars
Revenue
Expenditure
Capital
Expenditure
Total
R & D Expenditure 4.66 Nil 4.66
(2.91) (11.25) (14.16)
Note: Figures in brackets represent previous year fi gure.
31.02 Effects of changes in Foreign Exchange Rates (AS 11)
Pursuant to Notifi cation no GSR (914)E dated 29th December 2011 issued
by MCA , the Company has opted to adjust exchange difference arising on
reporting of long term foreign currency monetary items, in so far as , they
relate to the acquisition of depreciable assets, against the cost of such
assets and depreciate the said adjustment over the balance life of the
assets from the fi nancial year ending 31st March 2012.
Pursuant to Notifi cation No. 17/133/2008-CL-V dated 9th August 2012
issued by MCA, the Company capitalised the exchange differences
including for the period subsequent to the completion of construction of
assets. Had this not been followed, the exchange differences amounting
to ` 3.13 million relating to capitalized assets would have been credited
to Profi t and Loss Account and Fixed Assets would have been higher to
that extent for the year ended 31st March 2013.
31.03 Employee Benefits (AS-15)
31.03.01 Brief Description: A general description on the type of Defined
Benefit Plans are as follows:
a Earned Leave Benefit (EL):
Accrual – 32 days per year
Accumulation up to 300 days allowed
EL accumulated in excess of 15 days is allowed for encashment while
in service provided the EL encashed is not less than 5 days
b
c
d
e
Sick Leave (SL):
Accrual – 10 days per year
Encashment while in service is not allowed
Encashment on retirement is permitted and entire accumulation is
allowed for encashment
Gratuity:
15 days salary for every completed year of service. Vesting period is
5 years and the payment is restricted to ` 1 miilion.
Long Service Emblem:
On completion of each milestone of service from the date of joining
and also at the time of retirement, employees will be gifted with Gold
Coin, weight depends on the milestone of service completed.
Post Retirement Medical Benefits:
After retirement, on payment of one time lump sum contribution,the
superanuated employee and his/her dependent spouse and
dependent parents will be covered for medical benefi t as per the rules
of the Company.
f Retirement Benefits:
At the time of superannuation, employees are entitled for
reimbursement of expenses towards travel, transportation of personal
effects from their place of retirement to the new location upto certain
limits depending on the designation of the employee at the time of
retirement and one month’s salary as settling allowance.
31.03.02 The following contributions to Defined Contributions Plans are
treated as expenses during the year:
(` in Million)
Defined Contribution
Plan
Employer’s contribution
to Provident Fund
Employer’s contribution
to Superannuation Fund
Expenses
recognised during
2012-13
105.05
(92.99)
[120.57]
58.73
(55.07)
[44.68]
Contribution to
Key Management
Personnel
0.38
(0.47)
[0.33]
0.48
(0.59)
[0.41]
31.03.03 The amount recognised in the Balance Sheet for post employment
benefit plans are as under:
(` in Million)
Sl
No.
Particulars
1 Present value
of Funded
Obligation
2 Fair Value of
Plan Asset
3 Present Value
of Unfunded
Obligation
4 Unrecognised
Past Service
Cost
Gratuity
(Funded)
402.28
(294.21)
[254.34]
307.22
(261.55)
[183.09]
5 Net Liability 95.06
(32.66)
[71.25]
Post
Retirement
Medical Benefit
(Unfunded)
- 43.61
(35.60)
[16.74]
Other
Retirement
Benefits
(Unfunded)
- -
- -
8.55
(6.61)
[6.04]
- - -
43.61
(35.60)
[16.74]
8.55
(6.61)
[6.04]
31.03.04 The amount included in the fair value of plan assets of gratuity fund
are as follows:
Defined Contribution Plan 2012-13 2011-12 2010-11
Reporting Enterprise’s own fi nancial
instruments
Any Property occupied by, or
other assets used by the reporting
enterprise
Nil (Nil) [Nil]
Nil (Nil) [Nil]
31