in a Dynamic Environment - Domain-b

3) The Company has given undertakings to (a) Bank of China Co. Limited, not to transfer its controlling interest inTCS Financial Solutions Australia Pty Limited (formerly Financial Network Services Pty. Limited), (b) The Governmentof Madhya Pradesh not to divest its shareholding in MP Online Limited except to an affiliate, (c) State Bank of Indianot to sell, transfer or otherwise dispose off its share or any interest in C-Edge Technologies Limited.4) Consequent to the Guidance on implementing Accounting Standard 15 “Employee Benefits” (AS-15) which clarifiesthe applicability of the Accounting Standard, the Company has considered certain entitlements to earned leave whichcan be carried forward to future periods as a long-term employee benefit. The resultant reduction of Rs. Nil (March31, 2008: Rs. 28.67 crores - net of deferred tax) in the net liability in respect of employee benefit arising on April 1,2006, the date of adoption has been adjusted to General Reserves.5) Retirement benefit plansa) Defined contribution plansThe Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirementbenefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specifiedpercentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires theCompany to guarantee payment of interest at rates notified by the Central Government from time to time, forwhich shortfall has been provided for as at the Balance Sheet date.The Company recognised Rs. 217.63 crores (March 31, 2008: Rs. 192.41 crores) for provident fund contributionsand Rs. 65.71 crores (March 31, 2008:Rs. 54.21 crores) for superannuation contributions in the profit and lossaccount. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.The Company has contributed Rs 27.82 crores (March 31, 2008: Rs.15.48 crores) towards foreign definedcontribution plans.b) Defined benefit plansThe Company makes annual contributions to the Employees’ Group Gratuity-cum-Life Assurance Scheme ofthe Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The schemeprovides for lump sum payment to vested employees at retirement, death while in employment or on terminationof employment of an amount equivalent to 15 days salary for service less than 15 years, three-fourth monthssalary for service of 15 years to 19 years and one month salary for service of 20 years and more, payable foreach completed year of service or part thereof in excess of six months. Vesting occurs upon completion of fiveyears of service.The present value of the defined benefit obligation and the related current service cost were measured usingthe Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.137