REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
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27.<br />
toward provision for wage revision including for non<br />
executive employee for whom no such notification is<br />
available but there arrear have also been considered in line<br />
with such notification. Actuarial valuation of employees<br />
benefits and incentive have been carried out considering<br />
the estimated revised wages.<br />
The expenses of Rs.643.98 lacs incurred up to 2006-07 on<br />
RGGVY implementation were adjusted out of interest earned<br />
on such funds. The <strong>Corporation</strong> had approached MOP for<br />
regularization of above adjustments which is still pending.<br />
The management considers that amount is still recoverable<br />
from Govt. of India.<br />
28. Details of provision as required in AS-29<br />
(Rs. In lacs)<br />
Particulars Year ended Year ended<br />
(a) Interim Dividend<br />
31.03.2010 31.03.2009<br />
As per last Balance Sheet - -<br />
Addition during the year 25,759.80 17,173.20<br />
Amounts paid/utilized<br />
during the year 25,759.80 17,173.20<br />
Closing Balance - -<br />
(b) Proposed Dividend<br />
As per last Balance Sheet 21,466.50 25,759.80<br />
Addition during the year 34,566.07 21,466.50<br />
Amounts paid/utilized<br />
during the year 21,466.50 25,759.80<br />
Closing Balance 34,566.07 21,466.50<br />
(b) Corporate Dividend Tax<br />
As per last Balance Sheet 3,648.23 4,377.88<br />
Addition during the year 10,118.04 6,566.81<br />
Amounts paid/utilized<br />
during the year 8,025.26 7,296.46<br />
Closing Balance 5,741.01 3,648.23<br />
CONSOLIDATED<br />
29. The <strong>Corporation</strong> has adopted AS15 (revised 2005)<br />
‘Employees Benefit’. Defined employee benefit scheme are<br />
as follows:<br />
a. Provident Fund<br />
<strong>Corporation</strong> pays fixed contribution of Provident Fund at<br />
pre-determined rates to a separate trust which invests the<br />
funds in permitted securities. The trust is required to pay a<br />
minimum rate of interest on contribution to the members of<br />
the trust. The fair value of the assets of the Provident fund<br />
including the returns of the assets thereof, as at 31st March.<br />
2010 is greater than the obligation under the defined<br />
contribution plan.<br />
b. Gratuity<br />
The <strong>Corporation</strong> has a defined benefit gratuity plan. Every<br />
employee is entitled to gratuity as per the provision of the<br />
payment of Gratuity Act. The scheme is funded by the<br />
<strong>Corporation</strong> and is managed by separate trust. The liability<br />
of Gratuity is recognized on the basis of actuarial valuation.<br />
c. Post-Retirement Medical Facility (PRMF)<br />
The corporation has Post Retirement Medical Facility and<br />
Settlement benefits under which entitled employee<br />
(including spouse) are covered as per <strong>Corporation</strong>’s rule. This<br />
is recognized in the profit & loss account on the basis of<br />
actuarial valuation.<br />
d. Leave Travel Concession (LTC)<br />
The <strong>Corporation</strong> has a scheme of providing LTC to employees<br />
and their dependents. This is recognized in the profit & loss<br />
account on the basis of actuarial valuation.<br />
e. Other Defined Retirement Benefit (ODRB)<br />
The <strong>Corporation</strong> has a scheme for settlement at the time of<br />
superannuation at home town for employees and<br />
dependents. This is recognized in the profit & loss account<br />
on the basis of actuarial valuation.<br />
The summarized position of various defined benefit<br />
recognized in the Profit & Loss Account, Balance sheet and<br />
the funded status are as under :<br />
Expense recognized in P&L A/c:-<br />
Particulars Gratuity PRMF<br />
Rs. In Lacs<br />
ODRB<br />
(31.03.10) (31.03.09) (31.03.10) (31.03.09) (31.03.10) (31.03.09)<br />
a) Current Service Cost 139.91 116.14 57.10 46.79 0.78 0.72<br />
b) Interest Cost 198.00 110.43 168.36 128.48 1.31 1.07<br />
c) Expected Return on Plan Assets (243.67) (135.04) NIL NIL NIL NIL<br />
d) Acturial (Gain) Loss recognized in P&L A/c 277.02 (65.04) 452.80 385.24 3.26 3.26<br />
e) Past Service Cost NIL 948.48 NIL NIL NIL NIL<br />
f) Expense recognized in P&L A/c 371.26 974.96 678.25 560.51 5.36 5.05<br />
Expenses to be recognized in P&L A/c as per Actuary<br />
Less : Contributions received by the Gratuity Trust<br />
: Rs. 371.26 lacs<br />
from other organizations for new employees<br />
Add : Amount recognized on account of employees exited<br />
: Rs. 8.17 lacs<br />
From services from 01/01/2007 to 31/03/2009 on estimation basis : Rs. 101.63 lacs<br />
Net Expenses recognized in P&L A/c : Rs. 464.72 lacs<br />
99