Dear All,
Is it mandatory to get the gratuity valuation done? If yes, can it be done annually? We currently have our gratuity valuation conducted by a certified Actuary who charges a high fee. Could someone kindly provide a contact number for a certified Gratuity Actuary?
Thanks,
Smita
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4Is it mandatory to get the gratuity valuation done? If yes, can it be done annually? We currently have our gratuity valuation conducted by a certified Actuary who charges a high fee. Could someone kindly provide a contact number for a certified Gratuity Actuary?
Thanks,
Smita
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Dear Smita. I do not think so. Regards, R.N.Khola Skylark Associates, Gurgaon(Haryana) (Labour Law & Legal Consultants) 09810405361
From India, Delhi
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From India, Delhi
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Dear Smita, You don’t need to value your gratuity for your auditors. Atleast the Act doesn’t say so. Regards
From India, New Delhi
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From India, New Delhi
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Hi Smeta,
There is no need to calculate gratuity valuation by any other people; your company personnel can do this by themselves.
Why is your auditor asking for a higher price for this? You can negotiate with another firm.
This is only applicable if an employee is leaving your company after becoming eligible.
Have you included the gratuity amount in the employee's CTC?
Please provide us with a complete answer from your side.
Don't pay a hefty amount to any consultant for this. I can send you a formula for a pre-calculated Excel sheet where you can easily calculate it.
Best Regards,
Sajid Ansari - Delhi
From India, Delhi
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There is no need to calculate gratuity valuation by any other people; your company personnel can do this by themselves.
Why is your auditor asking for a higher price for this? You can negotiate with another firm.
This is only applicable if an employee is leaving your company after becoming eligible.
Have you included the gratuity amount in the employee's CTC?
Please provide us with a complete answer from your side.
Don't pay a hefty amount to any consultant for this. I can send you a formula for a pre-calculated Excel sheet where you can easily calculate it.
Best Regards,
Sajid Ansari - Delhi
From India, Delhi
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Dear All,
Gratuity valuation is a mandatory requirement under AS 15 accounting standards. Any auditor should verify the Gratuity valuation process/documents as per this standard. If I am correct, auditors are supposed to ensure that the company has made yearly provisions for Gratuity payments that may arise in the future.
Regards,
P. Arunkumar
From India, Bangalore
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Gratuity valuation is a mandatory requirement under AS 15 accounting standards. Any auditor should verify the Gratuity valuation process/documents as per this standard. If I am correct, auditors are supposed to ensure that the company has made yearly provisions for Gratuity payments that may arise in the future.
Regards,
P. Arunkumar
From India, Bangalore
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This comes under actuarial valuation and is required under AS-15 accounting standard. After disclosure of fraud in Satyam Computer, it has become mandatory, and all statutory auditors are asking for it. It is not new, but in the past, it had not gained so much importance.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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Dear Smita,
Actuarial valuation of Gratuity liability is mandatory under the Income Tax Act, and it should be conducted annually. The actuarial valuation of Leave Encashment Liability is also mandatory. This practice started from F.Y. 2007-08, so more certified Actuaries will be available this year.
Thanks,
Mohd. Arif Khan
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Actuarial valuation of Gratuity liability is mandatory under the Income Tax Act, and it should be conducted annually. The actuarial valuation of Leave Encashment Liability is also mandatory. This practice started from F.Y. 2007-08, so more certified Actuaries will be available this year.
Thanks,
Mohd. Arif Khan
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TRY it out yourself and if require ask your auditor to check it. Below menitoned is formula’s to calculate Gratuity: A-Basic+DA * 15 / 26 * No. of Year B-Basic+DA/26*15*No.of Services
From India, Mumbai
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From India, Mumbai
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Hi,
Gratuity valuation by a certified actuary is essentially required to ensure that the organization has made necessary provisions for payment of gratuity to its employees upon resignation or winding up. Internal and external auditors use the actuary's reports to check whether the provisions are made accordingly. This also serves as a checkpoint to ensure that the organization is not under-funding the gratuity account.
Attached are the details of one such actuary based out of Mumbai:
K A Pandit - 022 22042231
Hope this helps.
Regards,
Ronnie
From United States, Des Moines
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Gratuity valuation by a certified actuary is essentially required to ensure that the organization has made necessary provisions for payment of gratuity to its employees upon resignation or winding up. Internal and external auditors use the actuary's reports to check whether the provisions are made accordingly. This also serves as a checkpoint to ensure that the organization is not under-funding the gratuity account.
Attached are the details of one such actuary based out of Mumbai:
K A Pandit - 022 22042231
Hope this helps.
Regards,
Ronnie
From United States, Des Moines
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Hi,
If the gratuity fund is maintained by a trust in the organization, you may have to get it certified by an actuary. Even if we have done the calculations which are 100% accurate, it has to be certified by the actuary. We may have to provide our assumptions on annual attrition rate, percentage increase in salary, etc.
If the fund is maintained by the insurance company, we may demand the report from them. The insurance companies will have actuaries appointed in their organization, and there is no additional cost attached to it.
It is rightly said that if there is any leave encashment policy, the actuarial valuation has to be done for the leave as well, and the certificate has to be obtained in the AS 15 prescribed format.
Both of these activities have to be done annually and preferably at the end of the financial year.
Please let me know your email ID, and I shall refer an actuary.
Regards,
Deepa Sudhakar
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If the gratuity fund is maintained by a trust in the organization, you may have to get it certified by an actuary. Even if we have done the calculations which are 100% accurate, it has to be certified by the actuary. We may have to provide our assumptions on annual attrition rate, percentage increase in salary, etc.
If the fund is maintained by the insurance company, we may demand the report from them. The insurance companies will have actuaries appointed in their organization, and there is no additional cost attached to it.
It is rightly said that if there is any leave encashment policy, the actuarial valuation has to be done for the leave as well, and the certificate has to be obtained in the AS 15 prescribed format.
Both of these activities have to be done annually and preferably at the end of the financial year.
Please let me know your email ID, and I shall refer an actuary.
Regards,
Deepa Sudhakar
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Hi Smitha,
The valuation certificate for statutory payments is not very important prior to the Satyam scam. The statutory payments are valued by the management themselves and provisions are made in their books of accounts accordingly. After the Satyam scam, all statutory payments are focused on obtaining a valuation certificate to ensure the accuracy of accruals and deposits. Not only gratuity but other statutory payments have to be accompanied by a valuation certificate as per accounting standards. Now, accounting standards are given foremost importance after such a scam.
I apologize, I do not have a specific individual to handle such certifications. Typically, they will charge a nominal amount for the certification, not as high as you mentioned.
With warm regards,
T. Kumar
From India, Madras
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The valuation certificate for statutory payments is not very important prior to the Satyam scam. The statutory payments are valued by the management themselves and provisions are made in their books of accounts accordingly. After the Satyam scam, all statutory payments are focused on obtaining a valuation certificate to ensure the accuracy of accruals and deposits. Not only gratuity but other statutory payments have to be accompanied by a valuation certificate as per accounting standards. Now, accounting standards are given foremost importance after such a scam.
I apologize, I do not have a specific individual to handle such certifications. Typically, they will charge a nominal amount for the certification, not as high as you mentioned.
With warm regards,
T. Kumar
From India, Madras
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Hi Smita,
Gratuity valuation from an actuary is compulsory if your company has employed more than 20 employees and in some specific cases. Please refer to AS15 (Accounting standards) for more information. If you are exempt from actuarial valuation, you can perform a basic arithmetic calculation (basic + da * 26/15 * number of years completed in service with the company).
Contact details:
Name: Thanawala
Tel: (91 22) 6694 3311
From India, Madras
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Gratuity valuation from an actuary is compulsory if your company has employed more than 20 employees and in some specific cases. Please refer to AS15 (Accounting standards) for more information. If you are exempt from actuarial valuation, you can perform a basic arithmetic calculation (basic + da * 26/15 * number of years completed in service with the company).
Contact details:
Name: Thanawala
Tel: (91 22) 6694 3311
From India, Madras
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Dear All,
Thank you so much for your replies. I am confused now, as per a few replies, gratuity valuation by a certified actuary is mandatory, but a few are saying you can get it done within the company itself. Please advise.
Thanks,
Smita
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Thank you so much for your replies. I am confused now, as per a few replies, gratuity valuation by a certified actuary is mandatory, but a few are saying you can get it done within the company itself. Please advise.
Thanks,
Smita
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Experts, please advise. After reading the posts, I have many queries, and I request CiteHR members with real and complete knowledge to guide all members on the following points:
1. I am assuming that gratuity payment provision is to be made in the annual books of accounts every year. Is it okay to make a provision of actual gratuity payable as of 31st March to all the eligible employees onboard?
2. In case the company has a gratuity trust and a tie-up with an insurance company, and is paying regular premiums to them, is there a need to make a separate provision again?
3. If the provision is to be made as per point no. 1 above, it will be a huge provision but it is a simple arithmetic calculation, and there is no need for an actuary and expert.
4. How is actuarial calculation different? Will the provision be higher or lower than point no. 1 above? Why? And how?
Experts, please educate.
Thanks & Regards
From India, Pune
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1. I am assuming that gratuity payment provision is to be made in the annual books of accounts every year. Is it okay to make a provision of actual gratuity payable as of 31st March to all the eligible employees onboard?
2. In case the company has a gratuity trust and a tie-up with an insurance company, and is paying regular premiums to them, is there a need to make a separate provision again?
3. If the provision is to be made as per point no. 1 above, it will be a huge provision but it is a simple arithmetic calculation, and there is no need for an actuary and expert.
4. How is actuarial calculation different? Will the provision be higher or lower than point no. 1 above? Why? And how?
Experts, please educate.
Thanks & Regards
From India, Pune
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Dear Smita,
As far as I know, if you have more than 20-25 employees, you need to do a gratuity valuation annually. This is mainly from an accounting perspective as they do it for the balance sheet and P&L preparation. It is preferred if you use an actuary to do the valuation.
Our company uses:
Thanawala Consultancy Services,
Swagatam, 1st Floor,
Khar,
Mumbai - 400 052, India
Tel. No: (91 22) 6694 3311
Fax No: (91 22) 6694 3322
Website: firm of actuaries and consultants, actuaries and consultants firm, actuarial and various employee benefit-related consultancy services, employee benefits
They are reasonably priced and do a very systematic job.
Regards,
Rose S
From India, Mumbai
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As far as I know, if you have more than 20-25 employees, you need to do a gratuity valuation annually. This is mainly from an accounting perspective as they do it for the balance sheet and P&L preparation. It is preferred if you use an actuary to do the valuation.
Our company uses:
Thanawala Consultancy Services,
Swagatam, 1st Floor,
Khar,
Mumbai - 400 052, India
Tel. No: (91 22) 6694 3311
Fax No: (91 22) 6694 3322
Website: firm of actuaries and consultants, actuaries and consultants firm, actuarial and various employee benefit-related consultancy services, employee benefits
They are reasonably priced and do a very systematic job.
Regards,
Rose S
From India, Mumbai
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Dear Friend,
This is the first time I am hearing from you. If your organization has completed five years, you can get attached with LIC of India. Every financial year, you have to submit employee details of those who have joined and left, along with the existing basic and DA wages. Accordingly, they will send you your amount.
Regards,
RAVEESH
From India, Manipal
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This is the first time I am hearing from you. If your organization has completed five years, you can get attached with LIC of India. Every financial year, you have to submit employee details of those who have joined and left, along with the existing basic and DA wages. Accordingly, they will send you your amount.
Regards,
RAVEESH
From India, Manipal
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After reading the posts, I have many queries and I request citehr members with real and complete knowledge to guide all members on the following points:
1. I am assuming that gratuity payment provision is to be made in the annual books of accounts every year. Is it okay to make a provision of actual gratuity payable as of 31st March to all the eligible employees on board.
Provisioning has to be done for all employees, including those who have not completed 5 years of service, and should be accruing every month.
2. In case the company has a gratuity trust and a tie-up with an insurance company, and is paying a regular premium to them, is there a need to make a separate provision again.
Provisioning in the books of accounts may be done based on actuarial valuation and also considering other assumptions such as the number of new joiners, attrition, increment %, etc. If there is a tie-up with the insurance company, the actuarial valuation will be done by them, but the assumptions should be given to them.
3. In case the provision is to be made as per point no. 1 above, it will be a huge provision, but it is a simple arithmetic calculation and there is no need for an actuary or an expert.
Expert advice is required because the liability will be calculated after the assumptions, and it is very difficult for us to calculate. As a statutory requirement, actuarial valuation should be approved by the actuary.
4. How is actuarial calculation different? Will the provision be higher or lower than point no. 1 above? Why? And How?
The actuarial valuation and a simple gratuity calculation will definitely be different because the actuarial value is calculated after considering the assumptions.
Hope this clarifies
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1. I am assuming that gratuity payment provision is to be made in the annual books of accounts every year. Is it okay to make a provision of actual gratuity payable as of 31st March to all the eligible employees on board.
Provisioning has to be done for all employees, including those who have not completed 5 years of service, and should be accruing every month.
2. In case the company has a gratuity trust and a tie-up with an insurance company, and is paying a regular premium to them, is there a need to make a separate provision again.
Provisioning in the books of accounts may be done based on actuarial valuation and also considering other assumptions such as the number of new joiners, attrition, increment %, etc. If there is a tie-up with the insurance company, the actuarial valuation will be done by them, but the assumptions should be given to them.
3. In case the provision is to be made as per point no. 1 above, it will be a huge provision, but it is a simple arithmetic calculation and there is no need for an actuary or an expert.
Expert advice is required because the liability will be calculated after the assumptions, and it is very difficult for us to calculate. As a statutory requirement, actuarial valuation should be approved by the actuary.
4. How is actuarial calculation different? Will the provision be higher or lower than point no. 1 above? Why? And How?
The actuarial valuation and a simple gratuity calculation will definitely be different because the actuarial value is calculated after considering the assumptions.
Hope this clarifies
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Dear friend,
Beside gratuity, any other HR expense must be considered for provision in the accounts books so that the accounts department may correctly record the accrued expenses for the coming year. Provisions should also be made for leave encashment, bonuses, unpaid salaries, etc. It is essential to adhere to systematic accounting standards.
Best regards,
Umesh Chaudhary
welcomeumesh@yahoo.com
From India, Delhi
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Beside gratuity, any other HR expense must be considered for provision in the accounts books so that the accounts department may correctly record the accrued expenses for the coming year. Provisions should also be made for leave encashment, bonuses, unpaid salaries, etc. It is essential to adhere to systematic accounting standards.
Best regards,
Umesh Chaudhary
welcomeumesh@yahoo.com
From India, Delhi
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Hi Deepa Sudhakar,
Your response is really elaborate and has depth. I still have a doubt and request your clarification.
1) Correct me if I am wrong. As I understand it, the amount of provision for gratuity payable as of March 31st will be the actual gratuity payable to all employees on board. In short, if all employees are checked out on March 31st, that will be the amount of gratuity payable. This calculation involves simple arithmetic. To make this calculation, you do not need an actuary. An actuary or Chartered Accountant is likely needed to certify that the correct amount is provisioned for.
2) If my statement in (1) is correct, then the amount of gratuity calculated by X, Y, an Actuary, or a Chartered Accountant should be the same.
Thanks & Regards
From India, Pune
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Your response is really elaborate and has depth. I still have a doubt and request your clarification.
1) Correct me if I am wrong. As I understand it, the amount of provision for gratuity payable as of March 31st will be the actual gratuity payable to all employees on board. In short, if all employees are checked out on March 31st, that will be the amount of gratuity payable. This calculation involves simple arithmetic. To make this calculation, you do not need an actuary. An actuary or Chartered Accountant is likely needed to certify that the correct amount is provisioned for.
2) If my statement in (1) is correct, then the amount of gratuity calculated by X, Y, an Actuary, or a Chartered Accountant should be the same.
Thanks & Regards
From India, Pune
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Hi,
The calculation that you are talking about is discontinuance liability, and it is only an input to calculate the actuarial value. This will be the actual amount of gratuity payable. The actuarial value will usually be less than the discontinuance liability. The net liability will be calculated at the end of the FY, and it becomes the responsibility of the organization to keep it completely funded.
Actuarial Valuation parameters/Assumptions usually include mortality rate, attrition rate, salary inflation, discount rate, recognition of actuarial gain or loss, and also the method of valuation. The most commonly used method, as prescribed by the Institute of Actuaries and AS 15, is the Unit Credit Method.
Calculation of the Fair value of the assets should also be done. This definitely requires an expert's intervention.
Regards,
Deepa
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The calculation that you are talking about is discontinuance liability, and it is only an input to calculate the actuarial value. This will be the actual amount of gratuity payable. The actuarial value will usually be less than the discontinuance liability. The net liability will be calculated at the end of the FY, and it becomes the responsibility of the organization to keep it completely funded.
Actuarial Valuation parameters/Assumptions usually include mortality rate, attrition rate, salary inflation, discount rate, recognition of actuarial gain or loss, and also the method of valuation. The most commonly used method, as prescribed by the Institute of Actuaries and AS 15, is the Unit Credit Method.
Calculation of the Fair value of the assets should also be done. This definitely requires an expert's intervention.
Regards,
Deepa
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I think that gratuity calculation is required only when the employee is going to leave the organisation.
From India, Ranchi
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From India, Ranchi
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Surprised to see comments from various people - the concept of gratuity valuation seems to be widely misunderstood. Actuarial valuations of gratuity, leave encashment, pension, or other defined benefit schemes are mandatory as per AS 15 (revised, 2005) for the following companies:
1. Listed companies
2. Banks/FIs/Insurance companies
3. Companies having turnover more than 50 crores
4. Companies having borrowings more than 10 crores
5. Companies employing more than 50 employees
Even companies that do not fall under any of the categories listed above need to consult a certified actuary to assess the materiality and the need for any actuarial valuation. Such valuations cannot be done by company officials or their auditors as this would constitute a violation of the accounting standard.
From India, Bangalore
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1. Listed companies
2. Banks/FIs/Insurance companies
3. Companies having turnover more than 50 crores
4. Companies having borrowings more than 10 crores
5. Companies employing more than 50 employees
Even companies that do not fall under any of the categories listed above need to consult a certified actuary to assess the materiality and the need for any actuarial valuation. Such valuations cannot be done by company officials or their auditors as this would constitute a violation of the accounting standard.
From India, Bangalore
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Thank you, numerica.in;850235, for your update. 'AS 15' appears to be an Accounting Standard, and most HR professionals like me are not aware of Accounting Standards. I believe all Chartered Accountants and Auditors must be well aware of the provisions of 'AS 15' and the compliance needed under it. Hopefully, they are ensuring necessary compliance in companies they are associated with. Anyway, thanks for the update.
Thanks & Regards
From India, Pune
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Thanks & Regards
From India, Pune
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Dear All,
I have encountered an issue regarding gratuity valuation:
As of 31st March 2010, based on actuarial valuation, the provision we have created in our balance sheet is Rs. 198,416. Additionally, we have a Group Gratuity scheme with LIC, where the already deposited amount as of 31st March 2010 is Rs. 998,416.
Now, for the period up to 31st August 2010, LIC is requesting an additional deposit of Rs. 10 above what has already been deposited. They refer to this as the Current Service Cost + Additional contribution for the existing fund for the period from 1st August 2009 to 31st August 2010.
My question is, how much should we deposit with LIC to ensure compliance with all regulations and laws?
Furthermore, based on actuarial valuation, if the company were to wind up or discontinue operations, the gratuity amount payable to our employees would be Rs. 21 lakh.
Please advise on the correct amount to deposit with LIC to maintain the fund value, which can then be utilized to fulfill gratuity payments to employees who leave the service after completing 5 years of service.
Thanks in advance
From India, Delhi
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I have encountered an issue regarding gratuity valuation:
As of 31st March 2010, based on actuarial valuation, the provision we have created in our balance sheet is Rs. 198,416. Additionally, we have a Group Gratuity scheme with LIC, where the already deposited amount as of 31st March 2010 is Rs. 998,416.
Now, for the period up to 31st August 2010, LIC is requesting an additional deposit of Rs. 10 above what has already been deposited. They refer to this as the Current Service Cost + Additional contribution for the existing fund for the period from 1st August 2009 to 31st August 2010.
My question is, how much should we deposit with LIC to ensure compliance with all regulations and laws?
Furthermore, based on actuarial valuation, if the company were to wind up or discontinue operations, the gratuity amount payable to our employees would be Rs. 21 lakh.
Please advise on the correct amount to deposit with LIC to maintain the fund value, which can then be utilized to fulfill gratuity payments to employees who leave the service after completing 5 years of service.
Thanks in advance
From India, Delhi
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We provide actuarial consultancy in the area of employee benefits, wherein compliance with the Accounting Standards of the Institutes of Chartered Accountants is applied. The most important institute, in the Indian context, is The Institute of Chartered Accountants of India. The relevant accounting standard applicable to accounting for employee benefits issued by The Institute of Chartered Accountants of India is Accounting Standard-15 (Revised 2005), and some of the important employee benefits involving actuarial treatment are:
- Gratuity
- Leave Encashment
- Pension
- Post-Retirement Medical Benefits
Since annual financial statements such as the Balance Sheet and Profit/Loss Statement of your clients are available for the close of the financial year as of 31.03.2013, the services we provide will be needed by you, and we will be happy to assist if required. For further details, we invite you to visit our website at <link no longer exists - removed>.
Tikaram Chaudhary
9211637063
From India, Delhi
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- Gratuity
- Leave Encashment
- Pension
- Post-Retirement Medical Benefits
Since annual financial statements such as the Balance Sheet and Profit/Loss Statement of your clients are available for the close of the financial year as of 31.03.2013, the services we provide will be needed by you, and we will be happy to assist if required. For further details, we invite you to visit our website at <link no longer exists - removed>.
Tikaram Chaudhary
9211637063
From India, Delhi
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We provide actuarial consultancy in the area of employee benefits, ensuring compliance with the Accounting Standards of the Institutes of Chartered Accountants. The most important institute in the Indian context is The Institute of Chartered Accountants of India. The relevant accounting standard applicable to accounting for employee benefits issued by The Institute of Chartered Accountants of India is Accounting Standard-15 (Revised 2005), and some of the significant employee benefits involving actuarial treatment are:
- Gratuity
- Leave Encashment
- Pension
- Post Retirement Medical Benefits
Since the annual financial statements such as Balance Sheet and Profit/Loss Statement of your clients are at hand for the close of the financial year as of 31.03.2013, the services we provide will be needed by you, and we will be happy to offer our services if required. For further details, we request you to visit our website at <link no longer exists - removed>.
Tikaram Chaudhary
9211637063
From India, Delhi
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- Gratuity
- Leave Encashment
- Pension
- Post Retirement Medical Benefits
Since the annual financial statements such as Balance Sheet and Profit/Loss Statement of your clients are at hand for the close of the financial year as of 31.03.2013, the services we provide will be needed by you, and we will be happy to offer our services if required. For further details, we request you to visit our website at <link no longer exists - removed>.
Tikaram Chaudhary
9211637063
From India, Delhi
Acknowledge(0)Amend(0)
We provide actuarial consultancy in the area of employee benefits where compliance with the Accounting Standards of the Institutes of Chartered Accountants is applied. The most important institute, in the Indian context, is The Institute of Chartered Accountants of India. The relevant accounting standard applicable to accounting for employee benefits issued by The Institute of Chartered Accountant of India is Accounting Standard-15 (Revised 2005), and some of the important employee benefits involving actuarial treatment are:
- Gratuity
- Leave Encashment
- Pension
- Post Retirement Medical Benefits
Since annual financial statements such as the Balance Sheet and Profit/Loss Statement of your clients are at hand for the close of the financial year as on 31.03.2013, the services we deal in will be needed by you, and we will be happy to provide our services if needed. For further details, we request you to visit our website. Tikaram Chaudhary 9211637063.
From India, Delhi
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- Gratuity
- Leave Encashment
- Pension
- Post Retirement Medical Benefits
Since annual financial statements such as the Balance Sheet and Profit/Loss Statement of your clients are at hand for the close of the financial year as on 31.03.2013, the services we deal in will be needed by you, and we will be happy to provide our services if needed. For further details, we request you to visit our website. Tikaram Chaudhary 9211637063.
From India, Delhi
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Hi Smitha,
As you are aware, Section 211 of the Companies Act 1956 was amended to the Companies (Amendment) Act 1999, which requires that every Profit and Loss Account and Balance sheet of the Company shall comply with the Accounting Standard recommended by the Institute of Chartered Accountants of India. Accounting Standard 15 (AS 15) was prescribed by the Institute of Chartered Accountants of India for the Valuation of Gratuity and other employee-related liabilities.
The above AS 15 was revised by the Institute of Chartered Accountants in 2005, making it much more elaborate. Moreover, this has been made mandatory for the following organizations from the accounting year commencing after 7th December 2006:
All listed Companies.
All Banks, Financial Institutions, Insurance Companies.
All Business Organizations whose turnover exceeds Rs. 50 Crores, Or are having borrowing including public deposits in excess of Rs. 10 Crores at any time during the year, Or are employing 50 or more persons.
So it's mandatory and really very important to get valuation done from a certified Actuary.
We have a branch office in Bangalore. Kindly contact me on +91-9916086228 for pricing and more details.
Regards,
Manjunath Gupta
From India, Bangalore
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As you are aware, Section 211 of the Companies Act 1956 was amended to the Companies (Amendment) Act 1999, which requires that every Profit and Loss Account and Balance sheet of the Company shall comply with the Accounting Standard recommended by the Institute of Chartered Accountants of India. Accounting Standard 15 (AS 15) was prescribed by the Institute of Chartered Accountants of India for the Valuation of Gratuity and other employee-related liabilities.
The above AS 15 was revised by the Institute of Chartered Accountants in 2005, making it much more elaborate. Moreover, this has been made mandatory for the following organizations from the accounting year commencing after 7th December 2006:
All listed Companies.
All Banks, Financial Institutions, Insurance Companies.
All Business Organizations whose turnover exceeds Rs. 50 Crores, Or are having borrowing including public deposits in excess of Rs. 10 Crores at any time during the year, Or are employing 50 or more persons.
So it's mandatory and really very important to get valuation done from a certified Actuary.
We have a branch office in Bangalore. Kindly contact me on +91-9916086228 for pricing and more details.
Regards,
Manjunath Gupta
From India, Bangalore
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Gratuity Valuation knowledge.pdf