Together good things happen - Airtel
Together good things happen - Airtel Together good things happen - Airtel
6. Employee benefits (a) During the year, the Group has recognized the following amounts in the Profit and Loss Account Defined Contribution Plans Particulars For the year (Rs '000) For the year ended March ended March 31, 2010 31, 2009 Employer’s Contribution to Provident Fund *@ 689,960 617,843 Employer’s Contribution to Super annuation Fund # 100 2,162 Employer’s Contribution to ESI * 8,158 25,080 * Included in Contribution to Provident and Other Funds (Refer Schedule 16) # Included in Salaries, Wages and Bonus (Refer Schedule 16) @ Includes Contribution to Defined Contribution Plan for Key Managerial Personnel Defined Benefit Plans Gratuity liability and leave encashment liability are defined benefit obligations and are provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. For the Year ended March 31, 2010 Particulars Gratuity # (Rs '000) Leave Encashment # Funded Unfunded Total Unfunded Current service cost 100,236 130,681 230,917 206,284 Interest cost 38,752 19,749 58,501 46,349 Expected Return on plan assets (6,085) - (6,085) - Actuarial (gain) / loss 11,098 119,672 130,770 145,593 Past service cost - - - - Curtailment and Settlement cost / (credit) - - - - Net gratuity/Leave encashment cost 144,001 270,102 414,102 398,225 For the Year ended March 31, 2009 Particulars Gratuity # (Rs '000) Leave Encashment # b) The assumptions used to determine the benefit obligations are as follows: Particulars Gratuity Leave Encashment Discount Rate 7.50% 7.50% Expected Rate of increase in Compensation levels 8.00% 8.00% Expected Rate of Return on Plan Assets 7.50% N.A. Expected Average remaining working lives of employees (years) 26.80 years 26.80 years Previous year assumptions: Particulars Gratuity Leave Encashment Discount Rate 7.50% 7.50% Expected Rate of increase in Compensation levels Funded Unfunded Total Unfunded Current service cost 141,233 68,969 210,202 214,135 Interest cost 25,169 12,293 37,462 39,434 Expected Return on plan assets (5,288) - (5,288) - Actuarial (gain) / loss 124,534 6,484 131,018 56,308 Past service cost - - - - Curtailment and Settlement cost / (credit) - - - - Net gratuity/Leave encashment cost 285,648 87,746 373,394 309,877 # included in Salaries, Wages and Bonus (Refer Schedule 16) - 1st Three Years 15.00% 15.00% - Thereafter 7.00% 7.00% Expected Rate of Return on Plan Assets 7.50% N.A. Expected Average remaining working lives of employees (years) 27.74 years 27.74 years
c) Reconciliation of opening and closing balances of benefit obligations and plan assets Bharti Airtel Annual Report 2009-10 For the Year ended March 31, 2010 Particulars Gratuity (Rs '000) Leave Encashment Funded Unfunded Total Unfunded Change in Projected Benefit Obligation (PBO) Projected benefit obligation at beginning of year 516,698 263,318 780,016 617,981 Current service cost 100,236 130,681 230,917 206,284 Interest cost 38,752 19,749 58,501 46,349 Benefits paid - (259,509) (259,509) (326,623) Acquisition adjustment - 62,794 62,794 22,225 Curtailment and Settlement cost - - - - Contribution by plan participants - - - - Past service cost - - - - Actuarial (gain) / loss 5,013 119,672 124,684 145,593 Projected benefit obligation at year end Change in plan assets : 660,699 336,705 997,404 711,809 Fair value of plan assets at beginning of year 81,137 - 81,137 - Expected return on plan assets 6,085 - 6,085 - Actuarial gain / (loss) (6,085) - (6,085) - Employer contribution - - - - Contribution by plan participants - - - - Settlement cost - - - - Benefits paid - - - - Fair value of plan assets at year end 81,137 - 81,137 - Net funded status of the plan (579,562) (336,705) (916,266) (711,809) Net amount recognized (579,562) (336,705) (916,266) (711,809) For the Year ended March 31, 2009 Particulars Gratuity (Rs '000) Leave Encashment Funded Unfunded Total Unfunded Change in Projected Benefit Obligation (PBO) Projected benefit obligation at beginning of year 354,577 144,913 499,490 525,781 Current service cost 141,233 68,969 210,202 214,135 Interest cost 25,169 12,293 37,462 39,434 Benefits paid - (92,868) (92,868) (217,677) Curtailment and Settlement cost - - - - Contribution by plan participants - - - - Past service cost - - - - Actuarial (gain) / loss (4,281) 130,011 125,730 56,308 Projected benefit obligation at year end Change in plan assets : 516,698 263,318 780,016 617,981 Fair value of plan assets at beginning of year 70,502 - 70,502 - Expected return on plan assets 5,288 - 5,288 - Actuarial gain / (loss) (5,288) - (5,288) - Employer contribution 10,635 - 10,635 - Contribution by plan participants - - - - Settlement cost - - - - Benefits paid - - - - Fair value of plan assets at year end 81,137 - 81,137 - Net funded status of the plan (435,561) (263,318) (698,879) (617,981) Net amount recognised (435,561) (263,318) (698,879) (617,981) (d) The expected rate of return on plan assets was based on the average long-term rate of return expected to prevail over the next 15 to 20 years on the investments made by the LIC. This was based on the historical returns suitably adjusted for movements in long-term government bond interest rates. The discount rate is based on the average yield on government bonds of 20 years. (e) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. 139
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6. Employee benefits<br />
(a) During the year, the Group has recognized the following<br />
amounts in the Profit and Loss Account<br />
Defined Contribution Plans<br />
Particulars For the year<br />
(Rs '000)<br />
For the year<br />
ended March ended March<br />
31, 2010 31, 2009<br />
Employer’s Contribution to<br />
Provident Fund *@ 689,960 617,843<br />
Employer’s Contribution to<br />
Super annuation Fund # 100 2,162<br />
Employer’s Contribution to ESI * 8,158 25,080<br />
* Included in Contribution to Provident and Other Funds (Refer<br />
Schedule 16)<br />
# Included in Salaries, Wages and Bonus (Refer Schedule 16)<br />
@ Includes Contribution to Defined Contribution Plan for Key<br />
Managerial Personnel<br />
Defined Benefit Plans<br />
Gratuity liability and leave encashment liability are defined<br />
benefit obligations and are provided for on the basis of an<br />
actuarial valuation on projected unit credit method made at the<br />
end of each financial year.<br />
For the Year ended March 31, 2010<br />
Particulars Gratuity #<br />
(Rs '000)<br />
Leave<br />
Encashment #<br />
Funded Unfunded Total Unfunded<br />
Current service cost 100,236 130,681 230,917 206,284<br />
Interest cost 38,752 19,749 58,501 46,349<br />
Expected Return on<br />
plan assets (6,085) - (6,085) -<br />
Actuarial (gain) / loss 11,098 119,672 130,770 145,593<br />
Past service cost - - - -<br />
Curtailment and<br />
Settlement cost / (credit) - - - -<br />
Net gratuity/Leave<br />
encashment cost 144,001 270,102 414,102 398,225<br />
For the Year ended March 31, 2009<br />
Particulars Gratuity #<br />
(Rs '000)<br />
Leave<br />
Encashment #<br />
b) The assumptions used to determine the benefit obligations<br />
are as follows:<br />
Particulars Gratuity Leave<br />
Encashment<br />
Discount Rate 7.50% 7.50%<br />
Expected Rate of increase in<br />
Compensation levels 8.00% 8.00%<br />
Expected Rate of Return on<br />
Plan Assets 7.50% N.A.<br />
Expected Average remaining<br />
working lives of employees (years) 26.80 years 26.80 years<br />
Previous year assumptions:<br />
Particulars Gratuity Leave<br />
Encashment<br />
Discount Rate 7.50% 7.50%<br />
Expected Rate of increase in<br />
Compensation levels<br />
Funded Unfunded Total Unfunded<br />
Current service cost 141,233 68,969 210,202 214,135<br />
Interest cost 25,169 12,293 37,462 39,434<br />
Expected Return on<br />
plan assets (5,288) - (5,288) -<br />
Actuarial (gain) / loss 124,534 6,484 131,018 56,308<br />
Past service cost - - - -<br />
Curtailment and<br />
Settlement cost / (credit) - - - -<br />
Net gratuity/Leave<br />
encashment cost 285,648 87,746 373,394 309,877<br />
# included in Salaries, Wages and Bonus (Refer Schedule 16)<br />
- 1st Three Years 15.00% 15.00%<br />
- Thereafter 7.00% 7.00%<br />
Expected Rate of Return on<br />
Plan Assets 7.50% N.A.<br />
Expected Average remaining<br />
working lives of employees (years) 27.74 years 27.74 years
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