Movement in deferred tax assets & liabilities

December 31

Particulars Caso March 312020 March 312019 March 31 2018
Opening - (Liability) / asset (37085) (355.26) (319.73) (341.29)
Charged to profit or loss

Depreciation & amortisation 72.66 (84.56) (70.61) (96.28)
Unabsorbed loss : s (291.40) (4255)
Allwance for ECL on trade receivables 3.95 5.40 (1.88) 1.83
Allowance for ECL on Advances and others (7.36) 84.96 16.15 1692
Charged to other comprehensive income

Cash flow hedge reserve (18.12) 7.41 4482 19.79
Remeasurement of defined benefit obligation 7.84 (14.43) 2.80 4.06
MAT Credit

Availed / (utilised) (153.18) (14.36) 264.60 117.80
Closing - (Liability) / asset (465.06) (37085) (355.26) (319.73)

41 Employee Benefits

Defined contribution plan

‘The employee provident fund is in the nature of Defined contribution plan. The contribution made to the scheme is considered as expense in the
statement of Profit and loss when the employee renders the related service. There is no other obligation other than the contribution payable to
employee provident fund.

Particulars nee 31 March 312020 March 312019 March 312018
The total expenses recognised in statement of profit and loss represent
contribution payable by the Company at rates specified in the rules of

the plan. 21.18 35.67 36.26 34.99
Defined benefit plans

‘The Group extends defined benefit plan in the form of gratuity to employees. The company makes annual contribution to gratuity fund
administered by trustees and managed by SBI Life Insurance Company Ltd. The Company's liability is determined based on actuarial valuation
done at the year end as per projected unit credit method. The plan provides for a lump-sum payment to vested employees at retirement, death,
while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service
subject to the maximum of Rs.20 lakhs. Vesting occurs upon completion of five years of service.

‘These plans typically expose the group to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

 

For funded plans that rely on insurers for managing the assets, the value of assets certified by the Insurer may not be|
the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the|
future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant]
changes in the discount rate during the inter-valuation period.

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits,

If some of such employees resign / retire from the company there can be strain on the cash flows.
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One|

actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money,|
Market Risk An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed|

to fluctuations in the yields as at the valuation date.
Legislative risk ts the risk of increase in the plan abilities or reduction im the plan assets due to change im the

legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay}
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the|
same will have to be recognized immediately in the year when any such amendments effective.

Investment risk

 

Liquidity Risk

 

 

Legislative Risk

 

 

 

 

‘The principal assumptions used for the purposes of the actuarial valuations were as follows

Discount rate 6.66% 6.54% 7.75% 7.59%
Expected rate of salary increase 5.00% 3.00% 7.00% 8.00%
Attrition rate 5.00% 10.00% 5.00% 5.00%

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