Page 211 - KRCL ENglish

st
Notes forming part of the Standalone Financial Statements as at 31 March, 2020
(A) Dened Contribution Plan :

(i) The employees joined on or after 1.1.2004 are governed by the Contributory Pension
Scheme introduced by Government of India.The Corporation is contributing an
amount equal to the contribution made by the employess to the fund and there is no
further liablility on this account.

(ii) expenses for the year is as under

2019-20 2018-19

0.08 0.09
14.29 9.04

(B) Dened Benet Plan :
(i) Gratuity: The employees’ gratuity fund scheme managed by a Trust, is a dened
benet plan. The present value of obligation is determined based on the actuarial
valuation using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benet entitlement and measures
each unit separately to build up the nal obligation. Represents benets to employee
on the basis of number of years of service rendered. The employee is entitled to
receive the same on retirement or resignation. The Corporation has formed a trust for
gratuity, which is funded by the Corporation. However the funding to Gratuity fund as
required by actuary valuation is partly funded.

(ii) Leave Encashment: It represents un-availed leave to the credit of the employee and
carried forward in accordance with leave rules of the Corporation. As per KRCL
Circular no. CO-13011(11)/1/2019-PERS dtd 29.06.2020, as an austerity measure due
to COVID-19, leave balance of each employee as of 31st March 2020 is reduced by 30
days except for the employees who are on deputation or who are having KRCL service
of 10 years or less or those who are having less than 60 days leave as on 31st March
2020. 30 days leave adjustment for employees having less than 60 days as on 31st
March 2020 will be adjusted during FY 2020-21.

(iii) Pension : It represents benets to employees joined prior to 1.1.2004 on the basis of
rules framed in the Employees Pension Scheme Rules as under:

a Retirement pension on normal retirement at age of superannuation.

209