Amal Ltd 2014-15

73 Notes to the Financial Statements NOTE 33 EMPLOYEE BENEFITS a) Defined contribution plan: i) Provident fund ii) State defined contribution plans - Employers’ contribution to Employees’ State Insurance - Employers’ contribution to Employees’ Pension Scheme 1995 The Provident Fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognised by the income tax authorities. The Company has recognised the following amounts in the Statement of Profit and Loss for the year: (` 000) No. Particulars 2014-15 2013-14 1 Contribution to Provident Fund 197 185 2 Contribution to Employees Pension Scheme 1995 97 73 3 Contribution to Employees State Insurance 45 52 b) Defined benefit plans: i) Gratuity ii) Leave encashment As per the Policy of the Company, Gratuity fund is maintained with Life Insurance Corporation of India Ltd under Group Gratuity Scheme. Leave encashment is payable to eligible employees who have earned leaves during the employment and | or on separation as per the Policy of the Company. Valuation in respect of Gratuity and Leave Encashment have been carried out by independent actuary as at the Balance Sheet date, based on the following assumptions: No. Particulars Gratuity Leave encashment 2014-15 2013-14 2014-15 2013-14 1 Discount rate (per annum) 7.80% 9.29% 7.80% 9.29% 2 Rate of increase in compensation levels 7.00% 8.00% 7.00% 8.00% 3 Rate of return on plan assets 8.70% 8.70% N.A. N.A.