24.2.16. Reconciliation of basic and diluted shares used in computing earnings per share
in Nos.
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Number of shares considered as basic weighted average shares outstanding(1) |
57,11,80,050 |
57,04,75,923 |
Add : Effect of dilutive issues of shares / stock options |
1,88,308 |
6,40,108 |
Number of shares considered as weighted average shares and potential shares outstanding |
57,13,68,358 |
57,11,16,031 |
(1) Excludes shares held by controlled trusts
24.2.17. Provision for post-sales client support and warranties
The movement in the provision for post-sales client support and warranties is as follows :
in 
crore
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Balance at the Beginning |
82 |
92 |
Provision recognized / (reversed) |
5 |
(2) |
Provision utilized |
– |
(8) |
Translation difference |
1 |
– |
Balance at the end |
88 |
82 |
Provision for post-sales client support is expected to be utilized over a period of 6 months to 1 year.
24.2.18. Gratuity Plan
The following table sets out the status of the gratuity plan as required under AS 15.
Reconciliation of the opening and closing balances of the present value of the defined benefit obligation and plan assets :
in crore
Particulars |
As at March 31, |
||||
2011 |
2010 |
2009 |
2008 |
2007 |
|
Obligations at year beginning |
325 |
267 |
224 |
225 |
183 |
Service cost |
178 |
80 |
51 |
50 |
45 |
Interest cost |
25 |
19 |
16 |
17 |
14 |
Actuarial loss / (gain) |
17 |
(5) |
1 |
(8) |
(1) |
Benefits paid |
(65) |
(36) |
(25) |
(23) |
(16) |
Amendment in benefit plan |
– |
– |
– |
(37) |
– |
Obligations at year end |
480 |
325 |
267 |
224 |
225 |
Defined benefit obligation liability as at the Balance Sheet is fully funded by the Group. |
|||||
Change in plan assets |
|||||
Plans assets at year beginning, at fair value |
327 |
268 |
236 |
225 |
170 |
Expected return on plan assets |
36 |
25 |
17 |
18 |
16 |
Actuarial gain |
– |
1 |
5 |
2 |
3 |
Contributions |
182 |
69 |
35 |
14 |
54 |
Benefits paid |
(65) |
(36) |
(25) |
(23) |
(18) |
Plan assets at year end, at fair value |
480 |
327 |
268 |
236 |
225 |
Reconciliation of present value of the obligation and the fair value of the plan assets : |
|||||
Fair value of plan assets at the end of the period |
480 |
327 |
268 |
236 |
225 |
Present value of the defined benefit obligations at the end of the year |
480 |
325 |
267 |
224 |
225 |
Asset recognized in the Balance Sheet |
– |
2 |
1 |
12 |
– |
Assumptions |
|||||
Interest rate |
7.98% |
7.82% |
7.01% |
7.92% |
7.99% |
Estimated rate of return on plan assets |
9.36% |
9.00% |
7.01% |
7.92% |
7.99% |
Weighted expected rate of salary increase |
7.27% |
7.27% |
5.10% |
5.10% |
5.10% |
Net gratuity cost for the year ended March 31, 2011 and March 31, 2010 comprises of the following components :
in crore
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Gratuity cost for the year |
||
Service cost |
178 |
80 |
Interest cost |
25 |
19 |
Expected return on plan assets |
(36) |
(25) |
Actuarial gain |
17 |
(6) |
Plan amendment amortization |
(4) |
(3) |
Net gratuity cost |
180 |
65 |
Actual return on plan assets |
37 |
26 |
Gratuity cost, as disclosed above, is included under salaries and bonus and is segregated between software development expenses, selling and marketing expenses and general and administration expenses on the basis of the number of employees.
As of March 31, 2011 and March 31, 2010, the plan assets have been primarily invested in government securities. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.
Effective July 1, 2007, the Company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by 37 crore, which is being amortized on a straight line basis to the Profit and Loss account over ten years representing the average future service period of the employees. The unamortized liability as at March 31, 2011 and March 31, 2010 amounted to 22 crore and 26 crore, respectively and is disclosed under ‘Current Liabilities’.
The group expects to contribute approximately 106 crore to the gratuity trusts during fiscal 2012.
24.2.19.a. Provident Fund
The Guidance on Implementing AS 15, Employee Benefits (revised 2005) issued by the Accounting Standards Board (ASB) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the Company’s actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the Company is unable to exhibit the related information.
The Company contributed 198 crore and 171 crore to the Provident Fund during the year ended March 31, 2011 and March 31, 2010 respectively.
24.2.19.b. Superannuation
The Company contributed 109 crore and 91 crore to the Superannuation Trust during the year ended March 31, 2011 and March 31, 2010 respectively.