• No results found

NOTE NO 2.21 EMPLOYEE BENEFIT EXPENSES

In document SMC Global Securities Ltd. (Page 109-111)

FOR THE YEAR FOR THE YEAR

DESCRIPTIONS ENDED 31.03.2013 ENDED 31.03.2012

Salaries and incentives 364,961,349 377,096,462 Employers' Contributions to -

Provident fund 8,234,822 9,172,109

ESI 2,901,396 4,592,107

Gratuity # (1,876,227) 2,492,945

Staff welfare expenses 5,445,106 6,864,658

Total 379,666,446 400,218,281 # includes adjustment of prior period ` 12,23,450 (Previous Year Nil)

As per Accounting Standard 15 " Employee Benefits", the disclosures as defined in the accounting Standard are given below:

A Gratuity (Partly Funded)

Change in Present Value of Obligation

Present Value of the Obligation as at the beginning of the year 22,411,366 23,242,633

Interest Cost 1,960,995

Current Service Cost 4,008,149

Benefit Paid (926,543) (2,040,288)

Actuarial (gain)/loss on obligations (6,577,044) 1,209,021 Present Value of the Obligation as at the end of the year 20,876,923 22,411,366

Amount recognized in the Balance Sheet

Present Value of the Obligation as at the end of the year 20,876,923 22,411,366 Fair Value of Plan Assets as at the end of the year 1,417,731 1,375,947 Net Liability recognised in Balance Sheet 19,459,192 21,035,419 Amount recognized in the Statement of Profit and Loss

Interest Cost 1,960,995

Current Service Cost 4,008,149

Expected Return on Plan Assets (220,949) Actuarial (gain)/loss on obligations (6,577,044) Actuarial (gain)/loss on plan assets 176,072 Arrear of Gratuity Liability as on beginning of the year - Prior Period adjustments (1,223,450)

Total expense recognized in the Statement of Profit and Loss (1,876,227) 2,492,945 FOR THE YEAR FOR THE YEAR

PARTICULARS ENDED 31.03.2013 ENDED 31.03.2012*

(Amount in `)

Reconciliation of Balance Sheet

Present Value of the Obligation as at the beginning of the year 22,411,366 23,242,633 Total expense recognized in the Statement of Profit and Loss (652,777) 2,492,945

Benefits paid (926,543) (2,040,288)

Acturial return on plan assets 44,877 (1,283,924) Present Value of the Obligation as at the end of the year 20,876,923 22,411,366 Less: Fair value of plan assets at the end of the year 1,417,731 1,375,947

Net Liability 19,459,192 21,035,419

Bifurcation of the present value of the Obligation as on the end of the year

Current Liability 754,725 1,682,834

Non-Current Liability 18,704,467 19,352,585

Net Liability 19,459,192 21,035,419

The principal assumptions used in determining obligations for the Company s plans are shown below:

Discount rate 8.75% 8.75%

Increase in compensation cost 5.00% 5.00%

* Figures given to the extent available

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.

B Leave encashment (Unfunded)

Change in Present Value of Obligation

Present Value of the Obligation as at the beginning of the year 5,019,435 767,699

Interest Cost 439,201 65,254

Current Service Cost 1,245,897 4,122,647

Benefit Paid (1,453,019) (262,335)

Actuarial (gain)/loss on obligations (480,582) 326,170 Present Value of the Obligation as at the end of the year 4,770,932 5,019,435 Amount recognized in the Balance Sheet

Present Value of the Obligation as at the end of the year 4,770,932 5,019,435 Fair Value of Plan Assets as on the end of the year - - Net Liability recognised in Balance Sheet 4,770,932 5,019,435

FOR THE YEAR FOR THE YEAR

DESCRIPTIONS ENDED 31.03.2013 ENDED 31.03.2012

(Amount in `)

FOR THE YEAR FOR THE YEAR

PARTICULARS ENDED 31.03.2013 ENDED 31.03.2012*

(Amount in `)

EMPLOYEE BENEFIT EXPENSES

SMC GLOBAL SECURITIES LIMITED | ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

NOTE NO. 2.21

(Amount in `)

NOTE NO. 2.21

EMPLOYEE BENEFIT EXPENSES

FOR THE YEAR FOR THE YEAR

DESCRIPTIONS ENDED 31.03.2013 ENDED 31.03.2012

Salaries and incentives 364,961,349 377,096,462 Employers' Contributions to -

Provident fund 8,234,822 9,172,109

ESI 2,901,396 4,592,107

Gratuity # (1,876,227) 2,492,945

Staff welfare expenses 5,445,106 6,864,658

Total 379,666,446 400,218,281 # includes adjustment of prior period ` 12,23,450 (Previous Year Nil)

As per Accounting Standard 15 " Employee Benefits", the disclosures as defined in the accounting Standard are given below:

A Gratuity (Partly Funded)

Change in Present Value of Obligation

Present Value of the Obligation as at the beginning of the year 22,411,366 23,242,633

Interest Cost 1,960,995

Current Service Cost 4,008,149

Benefit Paid (926,543) (2,040,288)

Actuarial (gain)/loss on obligations (6,577,044) 1,209,021 Present Value of the Obligation as at the end of the year 20,876,923 22,411,366

Amount recognized in the Balance Sheet

Present Value of the Obligation as at the end of the year 20,876,923 22,411,366 Fair Value of Plan Assets as at the end of the year 1,417,731 1,375,947 Net Liability recognised in Balance Sheet 19,459,192 21,035,419 Amount recognized in the Statement of Profit and Loss

Interest Cost 1,960,995

Current Service Cost 4,008,149

Expected Return on Plan Assets (220,949) Actuarial (gain)/loss on obligations (6,577,044) Actuarial (gain)/loss on plan assets 176,072 Arrear of Gratuity Liability as on beginning of the year - Prior Period adjustments (1,223,450)

Total expense recognized in the Statement of Profit and Loss (1,876,227) 2,492,945 FOR THE YEAR FOR THE YEAR

PARTICULARS ENDED 31.03.2013 ENDED 31.03.2012*

(Amount in `)

Reconciliation of Balance Sheet

Present Value of the Obligation as at the beginning of the year 22,411,366 23,242,633 Total expense recognized in the Statement of Profit and Loss (652,777) 2,492,945

Benefits paid (926,543) (2,040,288)

Acturial return on plan assets 44,877 (1,283,924) Present Value of the Obligation as at the end of the year 20,876,923 22,411,366 Less: Fair value of plan assets at the end of the year 1,417,731 1,375,947

Net Liability 19,459,192 21,035,419

Bifurcation of the present value of the Obligation as on the end of the year

Current Liability 754,725 1,682,834

Non-Current Liability 18,704,467 19,352,585

Net Liability 19,459,192 21,035,419

The principal assumptions used in determining obligations for the Company s plans are shown below:

Discount rate 8.75% 8.75%

Increase in compensation cost 5.00% 5.00%

* Figures given to the extent available

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.

B Leave encashment (Unfunded)

Change in Present Value of Obligation

Present Value of the Obligation as at the beginning of the year 5,019,435 767,699

Interest Cost 439,201 65,254

Current Service Cost 1,245,897 4,122,647

Benefit Paid (1,453,019) (262,335)

Actuarial (gain)/loss on obligations (480,582) 326,170 Present Value of the Obligation as at the end of the year 4,770,932 5,019,435 Amount recognized in the Balance Sheet

Present Value of the Obligation as at the end of the year 4,770,932 5,019,435 Fair Value of Plan Assets as on the end of the year - - Net Liability recognised in Balance Sheet 4,770,932 5,019,435

FOR THE YEAR FOR THE YEAR

DESCRIPTIONS ENDED 31.03.2013 ENDED 31.03.2012

(Amount in `)

FOR THE YEAR FOR THE YEAR

PARTICULARS ENDED 31.03.2013 ENDED 31.03.2012*

(Amount in `)

EMPLOYEE BENEFIT EXPENSES

SMC GLOBAL SECURITIES LIMITED | ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

NOTE NO. 2.21

Amount recognized in the Statement of Profit and Loss

Interest Cost 439,201 65,254

Current Service Cost 1,245,897 4,122,647

Expected Return on Plan Assets - -

Actuarial (gain)/loss on obligations (480,582) 326,170 Arrear of Leave encashment Liability as on beginning of the year - - Total expense recognized in the Statement of Profit and Loss 1,204,516 4,514,071

Reconciliation of Balance Sheet

Present Value of the Obligation as at the beginning of the year 5,019,435 767,699 Total expense recognized in the Statement of Profit and Loss 1,204,516 4,514,071

Benefits paid (1,453,019) (262,335)

Present Value of the Obligation as on the end of the year 4,770,932 5,019,435 Bifurcation of the present value of

the Obligation as on the end of the year

Current Liability 179,373 397,179

Non-Current Liability 4,591,559 4,622,256

Total 4,770,932 5,019,435 The principal assumptions used in determining

obligations for the Company s plans are shown below:

Discount rate 8.75% 8.75%

Increase in compensation cost 5.00% 5.00%

* Figures given to the extent available

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.

FOR THE YEAR FOR THE YEAR

DESCRIPTIONS ENDED 31.03.2013 ENDED 31.03.2012

(Amount in `)

(Amount in `)

NOTE NO. 2.22

In document SMC Global Securities Ltd. (Page 109-111)