Mohsin Annual Report-Final 1-91:Layout 1.qxd - Siemens Pakistan

Notes to the Financial Statements 1097.2 Movement in net asset in the balance sheet is as follows:2007 2006(Rupees in ‘000)Opening balance of net asset 56,352 45,470Balance of CTI at acquisition - . 11,185Expense recognised for the year (22,436) (303)Closing balance of net asset 33,916 56,3527.3 The following amounts have been charged in the profitand loss account in respect of these benefits:Current service expense 27,765 21,733Interest expense 35,489 31,191Expected return on plan assets (42,296) (43,457)Settlement cost 1,469 - .Expense for the year 22,427 9,467Recognition of actuarial loss / (gain) 9 (9,164)Expense recognised in the financial statements 22,436 3037.4 Movement in the present value of defined benefit obligation:Opening balance 335,459 246,385Obligation pertaining to CTI at acquisition - . 37,009Service expense 27,765 21,733Interest expense 35,489 31,191Benefits paid (63,276) (22,800)Benefits due but not paid to outgoing members (15,017) - .Settlement cost 1,469 - .Actuarial loss 55,801 21,941Present value of defined benefit obligation at end of the year 377,690 335,4597.5 Movement in the fair value of plan assetsOpening balance 405,731 331,390Fair value of plan assets of CTI at acquisition - . 48,506Expected return 42,296 43,458Benefits paid (63,276) (22,800)Benefits due but not paid to outgoing members (15,017) - .Actuarial (loss) / gain (1,101) 5,177Fair value of plan assets at end of the year 368,633 405,7317.6 Comparison for five yearsAs at September 30, 2007 2006 2005 2004 2003--------------------------------(Rupees in '000)--------------------------------Fair value of plan assets 368,633 405,731 331,390 334,072 326,788Present value of defined benefit obligation (377,690) (335,459) (246,385) (225,050) (204,715)(Deficit) / surplus (9,057) 70,272 85,005 109,022 122,073Experience adjustment on plan liabilities 7% 18% 5% 8% -5%Experience adjustment on plan assets -1% 0% -2% 0% -2%