XYZ Private Limited - KPAC

1 KP Actuaries and ConsultantsTower 5/002, The Close South,Nirvana Country, Sector 50,Gurgaon - 122018, Haryana, : +91-124-4000491, Valuation Report as at 31 December 2014 Defined Benefit - Gratuity PlanIndian Accounting Standard AS 15 (Revised 2005)XYZ Private LimitedContentPage Liability / Discontinuance Liability Split by Completed Years of Liability Split by Age191020 Actuarial Valuation MethodActuarial AssumptionsSummary of Membership StatusAge AnalysisValuation ResultsChanges in the Present Value of ObligationChanges in the Fair Value of Plan AssetsFair Value of Plan AssetsFinancial AssumptionsDemographic AssumptionsMembership StatusMethod and Assumptions related termsFrequently Asked QuestionsThe Company's best estimate of Contribution during the next year Benefits and MethodologyThe Benefit ValuedReport Highlights and CertificationOverviewData and Benefit PlanValuation AssumptionsProfessional QualificationSummary of ResultsExperience adjustments on Present Value of Benefit Obligation and Plan AssetsExpenses recognized in the Profit and Loss AccountAssets and Liability

2 (Balance Sheet Position)Additional Information SheetSensitivity of Present Value of Obligation to key assumptionsExpenses Recognised in the Profit & Loss accountAmount for the Current PeriodMovement in the Liability recognized in the Balance SheetMajor categories of Plan AssetsBifurcation of Present Value of ObligationGlossaryBalance Sheet related termsProfit and Loss Account related termsNature of LiabilityDisclosure Requirments As Per Accounting Standard 152 of 20 1 Report Highlights and and Benefit PlanAllnumbersinthisreportrelatingtothev aluationdatesearlierthanthecurrentvaluat iondatehavebeenproduced from the previous actuarial reports provided by the monetary amounts mentioned in this report are in Indian Rupees (INR), unless mentioned , ,accuracyandcomprehensivenessofthisinfor mation;ifthedataorplanprovisionssupplied arenotaccurateandcomplete,thevaluationre sultsmaydiffer significantly from the results that would be obtained with accurate and complete (the'Company')toassistthemwiththeprepara tionoffinancialreportsinaccordancewithIn dianAccountingStandardsAS15(Revised2005) fordefinedbenefitplansrelatingtothe Gratuity scheme for the period ending (Revised2005) (Revised2005) , (Revised2005) ' ,itshouldnotbedisclosedorprovidedtoanyth irdparty, , ,butImakenorepresentationastothesuitabil ityofthisReportforanypurposeotherthanfor whichitwasoriginallyprovidedandacceptnor esponsibilityorliabilitytotheCompany' to the attention of its auditors when passing this report to 'sfinancialpositionataparticulartime.

3 Itdoesnotpredicttheplan's future financial condition or its ability to pay benefits in the ,totheextenttheyarerelevantandmaterial,u ndertherelevantActuarialPracticeStandard s/GuidanceNotesissuedbytheInstituteofAct uariesofIndia at the current valuation of 20 QualificationKhushwant Pahwa (FIAI)Membership Number: 04446 Fellow of Institute of Actuaries of IndiaEmail: in this ,asdiscussedintheReport,maybechangedfrom onevaluationtothenextbecauseofchangesinm andatedrequirements,plan'sexperience, ,actuarialassumptions,asdescribedinthisR eport, ,futureisuncertainandtheplan sactualexperiencecandifferfromthoseassum ptions; ,differentassumptionsorscenariosmayalsob ewithinthereasonablerangeand results based on those assumptions would be ,investmentpolicy,fundingmethodsshouldbe madeonlyaftercarefulconsideration of alternative future financial conditions and scenarios and not solely on the basis of this ,ortoprovideexplanationsorfurther details as may be ,includinginvestmentsorotherservices that could create a conflict of interest that would impair the objectivity of my of 20 2 Summary of ResultsThe valuation results as at 31-12-2014 are summarised in the tables and Liability (Balance Sheet Position)

4 31-Dec-1031-Dec-1131-Dec-1231-Dec-1331-D ec-14- - 136,639,260 166,055,460 194,717,719 - - 109,237,644 148,739,020 174,353,919 - - - - - - - - - - - - (27,401,616) (17,316,440) (20,363,800) recognized in the Profit and Loss Account31-Dec-1031-Dec-1131-Dec-1231-Dec -1331-Dec-14- - - 20,424,735 23,383,229 adjustments on Present Value of Benefit Obligation and Plan Assets31-Dec-1031-Dec-1131-Dec-1231-Dec- 1331-Dec-14- - - 14,751,212 13,635,548 - - - - - 2,767,237 1,852,470 - - - Company's best estimate of Contribution during the next year36,492,639 Present Value of ObligationFair Value of Plan AssetsEffects of Asset CeilingNet Asset / (Liability)ParticularsFor the period endingrefer para 120 (n) of AS 15 ParticularsAs onUnrecognized Past Service CostGain / (Loss)

5 On Plan Assets% of Opening Plan AssetsExpenses recognized in the statement of Profit and Lossrefer para 120 (n) of AS 15 ParticularsFor the period ending(Gain) / Loss on Plan Liabilities% of Opening Plan Liabilities5 of 20 3 Benefits and Benefit ValuedThe benefit valued in this Report are summarised Valuation MethodAllcosts,liabilitiesandotherfactor sunderthePlanweredeterminedinaccordancew ithgenerallyacceptedactuarialprinciples and procedures. The calculations in this report are consistent with my understanding of AS 15 (Revised 2005).refer para 120 (b) of AS 15 Type of PlanDefined BenefitNormal Retirement Age58 YearsVesting period5 YearsBenefit on normal retirementSameaspertheprovisionsofthePay mentofGratuityAct,1972 (as amended from time to time).Employer's Contribution100%Employee's ContributionNilSalary for calculation of GratuityLast drawn salaryGratuity formula15/26 * Last drawn salary * Number of completed yearsThevaluationhasbeencarriedoutusingt heProjectUnitCreditMethodasperAS15(refer paragrah65ofAS15)todeterminethePresentVa lueofDefinedBenefitObligationsandtherela tedCurrentServiceCostand,whereapplicable , Past Service Cost.

6 Benefit on early retirement / termination / resignation / withdrawalSameasnormalretirementbenefitb asedontheserviceuptothe date of on death in serviceSameasnormalretirementbenefitandn ovestingperiodcondition Limit6 of 20 4 Actuarial AssumptionsThe principal financial assumptions used in the valuation are shown in the table AssumptionsPlease refer section 7 ( ) and 8 ( and ) to see how the assumption are rate (per annum)Salary growth rate (per annum)Expected rate of return on plan assets (per annum) be set up based on Para 73 to Para 91 of AS15 (Revised 2005).refer para 120 (l) of AS 15 ParticularsMortality Rate Withdrawal rates, based on age: (per annum) Up to 30 years 31 - 44 years100% of IALM 06-083%2%100% of IALM 94-963%2%31-Dec-1431-Dec-13As Above 44 years7 of 20 Table of sample mortality rates from Indian Assured Lives Mortality 2006-0830 (per annum)Age MaleFemale8 of 20 5 Membership of Membership Analysis (as at 31-12-2014 )Average past service (years)Average age (years)Average remaining working life (years)Number of completed years valuedAs on1,137 19,455,457 Thedefinedbenefitobligationfortheperiode nding31-12-2014isbasedonthememberdatapro videdbytheCompany.

7 The summary statistics for the data as follows:Particulars31-Dec-1331-Dec-14 Number of employeesTotal monthly salary (Rs.) 12,587 1,088 12,523 22,280,683 0 390 408 168 100 22 0 050100150200250300350400450 Less than 1818 to 2930 to 3940 to 4950 to 5556 to 5859 & aboveNo. of employees Age (years) Age bracket 9 of 20 6 Valuation in the Present Value of in the Fair Value of Plan AssetsPresent Value of Obligation as at the beginning 136,639,260 166,055,460 Acquisition Adjustment- - The valuation results for the defined benefit gratuity plan as at 31-12-2014 are produced in the tables below.

8 Refer para 120 (c) of AS 15 ParticularsFor the period ending31-Dec-1331-Dec-14 Current Service Cost13,874,162 15,918,790 Curtailment Cost- - Interest Cost10,589,543 12,869,298 Past Service Cost- - Actuarial (Gain) / Loss on the Obligation8,229,760 7,974,885 Present Value of Obligation as at the end166,055,460 194,717,719 Settlement Cost- - Benefits Paid(3,277,265) (8,100,714) Acquisition Adjustment- - Expected Return on Plan Assets9,501,493 11,527,274 refer para 120 (e)

9 Of AS 15 ParticularsFor the period ending31-Dec-1331-Dec-14 Fair Value of Plan Assets as at the beginning109,237,644 148,739,020 Actuarial Gain / (Loss) on the Plan Assets2,767,237 1,852,470 Fair Value of Plan Assets as at the end 148,739,020 174,353,919 Employee's Contributions- - Benefits Paid(3,277,265) (8,100,714) Employer's Contributions30,509,911 20,335,869 10 of 20 Value of Plan Recognised in the Profit and Loss AccountActual Return on Plan Assets12,268,730 13,379,744 refer para 120 (k) of AS 15 ParticularsFor the period ending31-Dec-1331-Dec-14 Fair Value of Plan Assets as at the beginning109,237,644 148,739,020 Acquisition Adjustment- Fair Value of Plan Assets as at the end 148,739,020 174,353,919 refer para 120 (g)

10 Of AS 15 ParticularsFor the period ending31-Dec-1331-Dec-14 Employer's Contributions30,509,911 20,335,869 Benefits Paid(3,277,265) (8,100,714) - Interest Cost10,589,543 12,869,298 Expected Return on Plan Assets(9,501,493) (11,527,274) Current Service Cost13,874,162 15,918,790 Past Service Cost- - Expenses Recognised in statement of Profit and Loss20,424,735 23,383,229 Curtailment Cost- - Settlement Cost- - 6,122,415 - Employee's Contributions.