president & cfo - UB Group

Schedules forming part of account for the year ended March 31, 2009 (Contd.)10. Employee Benefitsa) Defined Contribution PlansThe Company offers its employees defined contribution plans in the form of Provident Fund (PF) andEmployees’ Pension Scheme (EPS) with the government, Superannuation Fund (SF) and certain state planssuch as Employees’ State Insurance (ESI). PF and EPS cover substantially all regular employees while the SFcovers certain executives and the ESI covers certain workers. Contribution to SF is made to trust managed bythe Company, while other contributions are made to the Government’s funds. While both the employees andthe Company pay predetermined contributions into the provident fund and the ESI Scheme, contributionsinto the pension fund and the superannuation fund are made only by the Company. The contributions arenormally based on a certain proportion of the employee’s salary.During the year, the Company has recognised the following amounts in the Profit and Loss Account, whichare included in Contribution to Provident and other funds in Schedule 15:Rs. Million2009 2008Provident Fund and Employee’s Pension Scheme * 45.614 54.495Superannuation Fund 33.380 29.018Employees’ State Insurance 8.738 8.553* Excluding contribution to PF made to trusts managed by the Company.b) Defined Benefit PlansGratuity:87.732 92.066The Company provides for gratuity, a defined benefit plan, (the Gratuity Plan), to certain categories ofemployees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or terminationof employment, an amount based on the respective employee’s last drawn salary and years of employmentwith the Company. The Company has employees’ gratuity funds managed by the Company as well as byInsurance Companies.Provident Fund:For certain executives and workers of the Company, contributions are made as per applicable Indian lawstowards Provident Fund to certain Trusts set up and managed by the Company, 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. Having regard to the assets of the Fund and the return on the investments,shortfall in the assured rate of interest notified by the Government, which the Company is obliged to makegood is determined actuarially.Death Benefit:The Company provides for Death Benefit, a defined benefit plan (the Death Benefit Plan) to certain categoriesof employees. The Death Benefit Plan provides a lump sum payment to vested employees on death, anamount based on the respective employee’s last drawn salary and remaining years of employment with theCompany after adjustments for any compensation received from the insurance company and restricted tolimits set forth in the said plan. The Death Benefit Plan is Non-Funded.55