REC- 1-51.p65 - Rural Electrification Corporation Ltd.

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