president & cfo - UB Group

Consolidated Financial StatementSchedules forming part of account for the year ended March 31, 2009 (Contd.)Pension:Whyte and Mackay Group operates and contributes in a defined benefit pension scheme (the Pension Plan).Liability with regard to Pension Plan is accrued based on actuarial valuation, based on Projected Unit CreditMethod at the balance sheet date, carried out by an independent actuary. Actuarial Gains and Losses compriseexperience adjustments and the effect of changes in the actuarial assumptions and are recognised immediatelyin the Profit and Loss Account as income or expense.Provident Fund:Group’s Provident Funds administered by trusts set up any company in the Group where the company’sobligation is to provide the agreed benefit to the employees and the actuarial risk and investment risk fall,in substance, on the company, are treated as a defined benefit plan. Liability with regard to such providentfund plans are accrued based on actuarial valuation, based on Projected Unit Credit Method, carried out by anindependent actuary at the balance sheet date. Actuarial Gains and Losses comprise experience adjustmentsand the effect of changes in the actuarial assumptions and are recognised immediately in the Profit and LossAccount as income or expense.Death Benefit:Death Benefit payable at the time of death is actuarially ascertained at the year-end and provided for in theaccounts.c) Other long term employee benefits:Compensated absences which are not expected to occur within twelve months after the end of the periodin which the employee renders the related services are recognised as a liability at the present value of thedefined benefit obligation at the balance sheet date based on actuarial valuation carried out at each balancesheet date.d) Short term employee benefits:Undiscounted amount of short term employee benefits expected to be paid in exchange for the servicesrendered by employees is recognised during the period when the employee renders the services. Thesebenefits include compensated absences such as paid annual leave and performance incentives.15. Expenditure on account of Voluntary Retirement SchemeExpenditure on account of Voluntary Retirement Scheme of employees is expensed in the period in which it isincurred.16. Research and DevelopmentRevenue expenditure on research and development is charged to Profit and Loss Account in the period inwhich it is incurred. Capital Expenditure is included as part of fixed assets and depreciated on the same basisas other fixed assets.17. Taxes on IncomeProvision for income tax comprises current taxes and deferred taxes. Current tax is determined as the amountof tax payable in respect of taxable income for the period in accordance with the applicable laws.Deferred tax is recognised on timing differences between the accounting income and the taxable income forthe year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheetdate.98