000_GMM Directors Report-Pg-1-18.indd - GMM Pfaudler Ltd

25. Computation of net profits in accordance with Section 349 of the Companies Act, 1956 and the remuneration payable to ManagingDirector and Executive DirectorYear ended Year ended31.03.10 31.03.09` ‘000 ` ‘000Profit before tax as per statement of profit and loss 167,253 157,522Add: Managerial Remuneration 11,910 10,289Directors’ fees 310 355Depreciation as per accounts 33,342 32,606Provision for diminution in value of investment (1,066) 1,490Loss on foreign exchange fluctuation on loan to a subsidiary 8,015 –Provision for doubtful debts/advances 4,847 1,266224,611 203,528Less: Profit/(Loss) on sale of fixed assets as per books (459) (934)Profit on sale of investments 4,958 1,456Interest on Loan to a subsidiary company 2,993 –Profit from sale of investment 141 –Depreciation under Section 350 33,342 32,606Net profit under Section 198 of the Companies Act, 1956 183,636 170,400Remuneration payable @ 10% on the above 18,364 17,040Managerial remuneration paid/payable to Managing Director and Executive Director 11,910 10,28926. EMPLOYEE BENEFITSThe amounts recognised in the company’s financial statements as at the year end are as under:Gratuity:As atAs at31.03.10 31.03.09(` ‘000) (` ‘000)a Assumptions :Discount Rate 8.50% 7.00%Rate of Return on Plan Assets 8.50% 7.00%Salary Escalation 6.00% 6.00%bcTable showing changes in Benefit Obligation:Liability at the beginning of the year 34,227 27,220Interest cost 2,396 2,178Current service cost 2,013 1,698Benefit paid (3,867) (6,265)Actuarial (gain)/loss on obligations 2,784 9,396Liability at the end of the year 37,553 34,227Change in Plan Assets:Fair value of Plan Assets at the beginning of the year 38,897 39,789Expected Return on Plan Assets 2,722 3,183Contributions 1,027 1,727Benefit Paid (3,867) (6,265)Acturial gain/(loss) on Plan Assets 760 464Fair value of Plan Assets at the end of the year 39,539 38,897Total Acturial Gain/(Loss) to be recognised (2,023) (8,932)43