Annual Report cb smile - Jet Airways

Significant Accounting Policies and Notes forming part of Consolidated Accounts (contd.)
Amount (Rs. in Lakhs)
Sr.
No. Particulars Gratuity (Non-Funded)
As on As on
31.03.2010 31.03.2009
II) Net cost for the year ended 31 st March, 2010:
Current Service cost 774 1,007
Interest cost 368 416
Actuarial (gain) / losses (642) (1,593)
Net cost 500 (170)
III) Fair Value of Planned Assets Nil Nil
IV) Experience Adjustment on actuarial (Gain) / Loss:
Plan Liabilities (gain) / loss (466) *
Plan Assets (gain) / loss Nil *
V) Assumption used in accounting for the gratuity plan:
Discount rate (%) 8% 7.75 %
Salary escalation rate (%) 5% 5 %
The present value of defined benefit obligation was Rs. 5,200 lakhs as on 31 st March, 2008 and Rs. 3,603
lakhs as on 31 st March, 2007.
The fair value of planned assets was Nil as on 31 st March, 2008 and Nil as on 31 st March, 2007.
The Subsidiary Company has adopted the Accounting Standard – 15 (AS-15) (Revised 2005) with effect
from 1 st April, 2007. Upto 31 st March, 2007, the Company had been contributing into a Gratuity Fund
Trust administered by the erstwhile management.
*The details of the Experience adjustments arising on account of plan assets and liabilities as required
by paragraph 120(n)(ii) of AS - 15 (Revised) on “Employee Benefits” of previous financial years are not
available in the valuation report for the financial year 2006-07, 2007-08, 2008-09 and hence, are not
furnished.
The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market.
c) Other Long Term Employee Benefits
The Leave Encashment reversal for the year ended 31st March, 2010, based on actuarial valuation carried out
using the Projected Accrued Benefit Method, amounting to Rs. 600 lakhs (Previous Year Rs. 159 lakhs) has
been recognized in the Profit and Loss Account.
7. MANAGERIAL REMUNERATION:
Amount (Rs. in lakhs)
Sr.No. Particulars 2009-10 2008-09
(i) Salary and Allowances* 102 90
(ii) Contribution to Provident Fund and Provision for Gratuity* 5 4
(iii) Perquisites* 20 Nil
Total 127 94
* Included under the head “Employees Remuneration and Benefits” (refer Schedule - O)
Note:
The remuneration reported above excludes charge for gratuity fund and compensated absences since the same is
ascertained on an aggregated basis for the Holding Company as a whole by way of actuarial valuation and separate
values attributable to directors are not ascertained.
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