in a Dynamic Environment - Domain-b

The estimate of future salary increases considered in actuarial valuation take account of inflation, seniority,promotion and other relevant factors such as supply and demand factors in the employment market.The expected return on plan assets is determined considering several applicable factors mainly the compositionof the plan assets held, assessed risks of asset management, historical results of the return on plan assets and theCompany’s policy for plan asset management.2009 2008 2007(Rs. in crores) (Rs. in crores) (Rs. in crores)Experience adjustmentOn plan liabilities (16.54) (26.62) (20.91)On plan assets 6.12 4.13 2.31Present value of benefit obligation 385.23 315.26 240.91Fair value of plan assets 344.16 264.87 243.13Excess of (obligation over plan assets) / plan assets overobligation (41.07) (50.39) 2.22The expected contribution is based on the same assumptions used to measure the Company’s gratuity obligations asof March 31, 2009. The Company is expected to contribute Rs. 76.79 crores to gratuity funds for the year endedMarch 31, 2010.6) Unbilled revenue as at March 31, 2009 amounting to Rs. 817.06 crores (March 31, 2008: Rs. 870.18 crores) primarilycomprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time, fixedprice basis of Rs.760.14 crores (March 31, 2008: Rs.691.08 crores).7) Obligations towards non-cancellable operating leasesOperating lease obligation 2009 2008(Rs. in crores)(Rs. in crores)Not later than one year 224.95 209.85Later than one year but not later than five years 543.59 523.11Later than five years 205.23 202.57Total 973.77 935.53Rental expenses of Rs. 212.50 crores (Previous year: Rs. 176.46 crores) in respect of obligation under operating leaseshave been recognised in the profit and loss account.8) Obligations towards finance leases 2009 2008(Rs. in crores)(Rs. in crores)Assets acquired under finance lease:Minimum Lease Payments:Less than one year 7.11 -One to five years 28.45 -Later than five years 21.92 -Total 57.48 -Present Value of minimum lease payments:Less than one year 1.93 -One to five years 12.13 -Later than five years 17.12 -Total 31.18 -9) Research and development expenditure aggregating Rs. 42.31 crores (Previous year: Rs. 36.94 crores) was incurredduring the year.10) Sale of Equipment is net of excise duty of Rs. 2.08 crores (Previous year: Rs. 2.83 crores).139