DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Notes to the Financial Statements
16. Stated Capital
2009
Rs ‘000
2008
Rs ‘000
Issued & fully paid
59,861,512 ordinary shares (March 31, 2008 - 59,861,512) 598,615 598,615
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at meetings of the Company.
17. Retirement benefit obligations
Consolidated
2009
Rs ’000
2008
Rs ’000
Company
2009
Rs ’000
2008
Rs ’000
a. At beginning of the year 741,653 609,204 144,054 130,351
Amortisation of transitional liability 1,740 - 8,200 -
Effects of movements in foreign exchange (219) 4,411 - -
Benefit paid by the plan (59,495) (52,690) (6,864) (16,058)
Current service cost 12,363 - 9,857 -
Provision for the year - 180,728 - 27,111
Interest cost 29,115 - 27,750 -
Transfer from subsidiary - - - 2,650
Actuarial (gain)/loss 86,209 - (20,304) -
At end of the year 811,366 741,653 162,693 144,054
b. Expense recognised in the Income Statement
Administrative expenses 129,427 - 25,503 -
c. Amortisation of transitional liability as at March 31, 2008
Actuarial valued liability 777,973 - 185,053 -
As per Payment of Gratuity Act 741,653 - 144,054 -
Difference 36,320 - 40,999 -
Amortisation for the year 8,645 - 8,200 -
Credit for the Year (6,905) - - -
Net amortisation for the year 1,740 - 8,200 -
Amount to be amortised in the future 34,580 - 32,799 -
d. Market value of unfunded gratuity 845,947 777,973 194,518 185, 053
Total present value of the obligation 845,947 777,973 194,518 185, 053
The Group has adopted SLAS 16 - (Revised 2006) - Employee Benefits, which is applied prospectively from April 1, 2008.
As such comparative figures have not been adjusted.
SLAS 16- (Revised 2006) requires the use of actuarial techniques to make a reliable estimate of the amount of retirement
benefit that employees have earned in return for their service in the current and prior periods and discount that benefit
using the Projected Unit Credit Method in order to determine the present value of the retirement benefit obligation
and the current service cost. This requires an entity to determine how much benefit is attributable to the current and
prior periods and to make estimates about demographic variables and financial variables that will influence the cost of
the benefit. The actuarial valuation was carried out by a professionally qualified firm of actuaries, Messrs Acturial and
Management Consultant (Pvt) Ltd. The following key assumptions were made in arriving at the above figure.
D I P P E D P R O D U C T S P L C A N N U A L R E P O R T 2 0 0 8 – 2 0 0 9
63