in a Dynamic Environment - Tata Consultancy Services

178
Annual Report 2008-09
Domestic Foreign
2009 2008 2007 2009 2008 2007
(Rs. in (Rs. in (Rs. in (Rs. in (Rs. in (Rs. in
crores) crores) crores) crores) crores) crores)
Experience adjustment
On plan liabilities (19.01) (27.75) (22.11) 4.46 (0.31) 0.34
On plan assets 5.08 3.96 2.44 (6.17) (0.25) (0.51)
Present value of benefit obligation 425.38 332.21 256.80 159.71 119.21 108.48
Fair value of plan assets
Excess of (obligation over plan assets) /
359.63 266.56 244.17 137.62 124.31 100.87
plan assets over obligation (65.75) (65.65) (12.63) (22.09) 5.10 (7.61)
The expected benefits are based on the same assumptions used to measure Group’s gratuity obligations as of
March 31, 2009. Group is expected to contribute Rs.109.58 crores to gratuity funds for the year ended March
31, 2010, comprising domestic component of Rs. 86.63 Crores and foreign component of Rs 22.95 Crores
Unfunded Post retirement medical benefits As at
March 31, 2009
(Rs. in crores)
i) Change in benefit obligations:
Project benefit obligation, beginning of the year 5.13
5.64
Service cost 0.03
0.43
Interest cost 0.41
0.48
Acquisitions -
-
Actuarial gain (0.72)
(1.34)
Plan Participant's contributions -
-
Exchange loss -
-
Benefit paid (0.39)
(0.08)
Projected benefit obligation, end of the year 4.46
5.13
Fair value of plan assets, end of the year -
-
Excess of obligation over plan assets (4.46)
(5.13)
ii) Accrued liability (4.46)
(5.13)
iii) Net medical and other cost for the year ended March 31, 2009
Service cost 0.03
0.43
Interest on Defined Benefit Obligation 0.41
0.48
Net Actuarial (gains) recognised in the year (0.72)
(1.34)
Net medical and other cost (0.28)
(0.43)
iv) Assumptions used in accounting for the medical plan:
Rate
Discount rate 7.50%
8.00 %