Annual Report 2010-2011 - Colombo Stock Exchange

17 Employee benefit liabilities
Group
Company
2010/2011 2009/2010 2010/2011 2009/2010
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Provision for retiring gratuity
At beginning of the year 1,529,685 1,103,222 50,141 45,114
Provision for the year 282,843 557,485 3,103 9,799
Payments (150,397) (131,022) (4,788) (4,772)
Transfers - - 122 -
At end of the year 1,662,131 1,529,685 48,578 50,141
Actuarial valuation of the defined benefit plan / gratuity was carried out on 31st March 2011 by Messrs. Actuarial & Management
Consultants (Pvt) Ltd, Actuaries for Companies in all segments other than for the plantation segment. In respect of plantation
companies such valuation was carried by the same party as at 31st March 2010. Appropriate and compatible assumptions were
used in determining the cost of retirement benefits. The principal assumptions used are as follows:
Assumptions 2010/2011 2009/2010
a) Demographic assumptions
Retiring age:
Executives 55-60 years 55-60 years
Non Executives 55 years 55 years
In respect of plantation companies,
Retiring age:
Workers (male and female) 60 years 60 years
Other categories of staff (male and female) 55-58 years 55-58 years
b) Financial assumptions
Rate of interest net of tax per annum 10.5% 12%
Rate of salary increment 9% 8.5%
Rate of discount 10.5% 12%
In respect of plantation companies,
Rate of interest net of tax per annum 11% 11%
Rate of salary increment:
Workers 16% every two years 16% every two years
Staff employees 10% per year 10% per year
Rate of discount 11% 11%
18 Trade and other payables
Group
Company
2010/2011 2009/2010 2010/2011 2009/2010
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Trade payables 1,925,213 1,406,537 - -
Accrued expenses 945,938 627,081 - 232,239
Others 781,995 599,295 258,991 -
3,653,146 2,632,913 258,991 232,239
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Annual Report 2010/2011 | Richard Pieris and Company PLC