in a Dynamic Environment - Domain-b

Annual Report 2008-09The following table sets out the funded status of the gratuity plan and the amounts recognised in the Company’sfinancial statements as at March 31, 2009.As atAs atMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)i) Change in benefit obligations:Projected benefit obligation, beginning of the year 315.26 240.91Service cost 59.39 48.39Interest cost 27.23 22.10Actuarial loss 6.95 26.12Benefits paid (23.60) (22.26)Projected benefit obligation, end of the year 385.23 315.26As atAs atMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)ii) Change in plan assets:Fair value of plan assets, beginning of the year 264.87 243.13Expected return on plan assets 24.09 20.18Employer’s contributions 72.68 19.69Benefit paid (23.60) (22.26)Actuarial gain 6.12 4.13Fair value of plan assets at the end of the year 344.16 264.87Excess of obligation over plan assets (41.07) (50.39)Accrued liability (41.07) (50.39)2009 2008(Rs. in crores)(Rs. in crores)iii) Net gratuity and other cost:Service cost 59.39 48.39Interest on defined benefit obligation 27.23 22.10Expected return on plan assets (24.09) (20.18)Net actuarial gain recognised in the year 0.83 21.99Net gratuity cost and other cost 63.36 72.30Actual Return on Plan Assets 30.21 24.31As atAs atMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)iv) Category of Assets as at March 31, 2009:Special Deposits Scheme 1.76 1.73Insurer Managed Funds 342.38 262.64Others 0.02 0.50Total 344.16 264.87As atAs atMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)v) Assumptions used in accounting for thegratuity plan:% %Discount rate 7.50 8.00Salary escalation rate 6.00 6.00Expected rate of return on plan assets 8.00 8.00138