Page 294 - BCML AR 2019-20

FINANCIAL STATEMENTS

Notes forming part of the Consolidated Financial Statements

Note No. : 37 Other disclosures (Contd.)

(b) Details of unfunded post retirement obligations are as follows: (C in Lacs)
Sl. Particulars Leave Encashment
No. (Unfunded)
Year Year
ended 31st ended 31st
March, 2020 March, 2019
I. Components of employer expense :
1 Current service cost 41.46 42.73
2 Interest cost 38.58 28.99
3 Actuarial (gain) /loss recognised in the year 153.72 141.11
4 Expense recognised in the Statement of Profit and Loss 233.76 212.83
II. Change in present value of obligation :
1 Present value of obligation at the beginning of the year 552.48 433.41
2 Interest cost 38.58 28.99
3 Current service cost 41.46 42.73
4 Benefits paid 89.58 93.76
5 Actuarial (gain) /loss recognised in the year 153.72 141.11
6 Present value of obligation at the end of the year 696.66 552.48
III. Net Asset / (Liability) recognised in the Consolidated Balance Sheet as at the
year end:
1 Present value of defined benefit obligation 696.66 552.48
2 Fair value of plan assets - -
3 Funded status [Surplus/(Deficit)] (696.66) (552.48)
4 Net Asset / (Liability) recognised in consolidated balance sheet (696.66) (552.48)
IV. Actuarial Assumptions :
1 Discount Rate (per annum) % 6.75% 7.60%
2 Expected rate of Salary increase % 6.00% 6.00%
3 Retirement/Superannuation Age (Year) 60 60
4 Mortality Rates IALM 2006-2008 IALM 2006-2008
Ultimate Ultimate
V. Maturity Profile
Expected cash flows (valued on undiscounted basis):
Within the next 12 months 25.37 24.93
Between 2 and 5 years 133.64 90.82
Between 5 and 10 years 393.64 244.50
Total expected payments 552.65 360.25
(c) Risks related to defined benefit plans:
The main risks to which the Company is exposed in relation to operating defined benefit plans are :
(i) Mortality risk:
The assumptions adopted by the Company make allowances for future improvements in life expectancy. However, if life
expectancy improves at a faster rate than assumed, this would result in greater payments from the plans and consequently
increases the plan’s liabilities. In order to minimise this risk, mortality assumptions are reviewed on a regular basis.

292 | Balrampur Chini Mills Limited