Amal Ltd 2016-17

85 Notes to the Financial Statements 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) Particulars 2016-17 2015-16 1. Contribution to provident fund 89 108 2. Contribution to employees pension scheme 1995 94 100 3. Contribution to employees state insurance 51 49 (b) Defined benefit plans: Gratuity The Gratuity fund is maintained with the LIC of India under Group Gratuity scheme. Valuation in respect of Gratuity have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions and sensitivity: Particulars Gratuity 2016-17 2015-16 1. Discount rate (per annum) 6.50% 7.56% 2. Rate of increase in compensation levels 7.00% 7.00% 3. Expected rate of return on plan assets 6.50% 7.56% 4. Rate of salary increase 7.00% 7.00% 5. Rate of employee turnover 7.30% 7.00% Sensitivity Analysis: The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: Particulars Gratuity As at March 31, 2017 (12 months) DBO ( ` 000 ) Change in DBO (%) Discount rate varied by 0.5% +0.5% (421) (5.2)% -0.5% 440 (0.9)% Salary growth rate varied by 0.5% +0.5% 440 (0.9)% -0.5% (421) (5.2)% Withdrawal rate (W.R.) varied by 10% W.R. x 110% (430) (3.35)% W.R. x 90% 432 (2.86)% Sensitivity analysis produces the results by varying a single parameter & keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed. There are no changes from the previous period in the methods and assumptions used in preparing the sensitivity analysis.