Financial Year - GMM Pfaudler Ltd

GMM PFAUDLER LIMITEDAnnual Report 2010 - 20119. CONTINGENT LIABILITIES (` in ‘000’)As atAs at31.03.11 31.03.10a) Claim against the Company not acknowdgeld as debtsi) Dispute relating to Cenvat Credit 4,170 3,913ii) Dispute relating to tax demand 488 19,666b) Gurantee issued by bank 188,868 135,94210. BASIC AND DILUTED EARNING PER SHAREYear ended Year ended31.03.11 31.03.10a) Net profit for the year available to equity shareholders after 121,336 94,704Prior Period Tax Adjustment ` (‘000)Weighted average number of Equity Shares during the year 14,617,500 14,617,500b) Face value of Equity Share in ` 2 2c) Basic and diluted earnings per share 8.30 6.4811. EMPLOYEE BENEFITSThe amounts recognised in the Company’s financial statements in respect of employee benefits under defined benefit plan as atMarch 31, 2011 are as under:Gratuity:(` in ‘000’)As at As at31.03.11 31.03.10a Assumptions :Discount Rate 8.50% 8.50%Rate of Return on Plan Assets 8.50% 8.50%Salary Escalation 6.00% 6.00%Mortality LIC 1994-96 LIC 1994-96Ultimate Table Ultimate TablebcdeTable showing changes in Benefit Obligation:Liability at the beginning of the year 37,553 34,227Interest cost 3,192 2,396Current service cost 2,295 2,013Benefit paid (2,073) (3,867)Actuarial (gain)/loss on obligations (2,462) 2,784Liability at the end of the year 38,505 37,553Change in Plan Assets:Fair value of Plan Assets at the beginning of the year 39,539 38,897Expected Return on Plan Assets 3,361 2,722Contributions 2,117 1,027Benefit Paid (2,073) (3,867)Acturial gain / (loss) on Plan Assets 410 760Fair value of Plan Assets at the end of the year 43,354 39,539Total Acturial Gain / (Loss) to be recognised 2,872 (2,023)Actual Return on Plan Assets:Expected Return on Plan Assets 3,361 2,723Acturial gain / (loss) on Plan Assets 410 760Actual Return on Plan Assets 3,771 3,483Amount Recognised in the Balance Sheet:Liability at the end of the year 38,505 37,552Fair value of Plan Assets at the end of the year 43,354 39,538Difference 4,850 (1,986)Amount Recognised in the Balance Sheet 4,850 (1,986)56