2.14 Employee Benefits

Employee benefits include provident fund, superannuation, gratuity and compensated absences.

(a) Defined Contribution Plans

Provident Fund

Contributions towards Employees' Provident Fund are made to the Employees' Provident Fund Scheme maintained by the Central Government and the Company's contribution to the fund are recognized as an expense in the year in which the services are rendered by the employees.

Superannuation

The Company contributes a specified percentage of eligible employees' salary to a Superannuation Fund  administered by trustees and managed by the Insurer. The Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognizes such contributions as an expense in the year in which the services are rendered by the employees.

National Pension Scheme

The Company contributes a specified percentage of the eligible employees salary to the National Pension Scheme of the Central Government. The Company has no liability for future Pension benefits and the Company's contribution to the Scheme are recognized as an expense in the year in which the services are rendered by the employees.

(b) Defined Benefit Plans

The Company contributes to a Gratuity Fund administered by trustees and managed by the Insurer. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year by an Independent Actuary using the Projected Unit Credit method. Actuarial gains/losses are immediately recognised in the Statement of Profit and Loss. Obligation under the defined benefit plan is measured at the brsent value of the estimated future cash flow using a discounted rate that is determined by reference to the brvailing market yields at the Balance Sheet date on Indian Government Bonds where the currency and terms of the Indian Government Bonds are consistent with the currency and estimated term of the defined benefit obligation.

(c) Compensated Absences

The Company accounts for its liability towards compensated absences based on actuarial valuation done as at the Balance Sheet date by an independent actuary using the Projected Unit Credit Method. The liability includes the long term component accounted on a discounted basis and the short term component which is accounted for on an undiscounted basis.

(d) Other Employee Benefits

Other employee benefits are estimated and accounted for based on the terms of the employment contract.

28. Employee Benefits

28.1 Defined Contribution Plan

During the year, the Company has recognised the following amounts under Defined Contribution Plan in the Statement of Profit and Loss:

Particulars	For the year ended 31 March 2016	For the year ended 31 March 2015
	Rs. in Millions	Rs. in Millions
Employer's Contribution to Provident Fund	197.97	167.25
Employer's Contribution to National Pension Fund	7.86	4.54
Employer's Contribution to Superannuation Fund	82.69	76.09
Total	288.52	247.88

28.2 Defined Benefit Plans

The Company has a funded gratuity scheme for its employees. Gratuity liability has been determined based on the actuarial valuation done as at the year end. The details of actuarial valuation as provided by the Independent Actuary are as follows:

Particulars	2015-16	2014-15
	Rs. in Millions	Rs. in Millions
Change in Defined Benefit Obligations during the Year
Projected benefit obligations as at the beginning of the Year	534.68	371.80
Current Service Cost	59.73	51.62
Interest Cost	41.38	28.33
Benefits Paid	(16.34)	(16.23)
Actuarial Loss	53.76	99.16
Present Value of Defined Benefit Obligation at end of the Year	673.21	534.68
Change in Fair Value of Assets during the Year
Plan assets at beginning of the Year	399.39	297.64
Expected Return on Plan Assets	33.92	29.34
Employer's Contribution	78.59	62.43
Benefits Paid	(16.34)	(16.23)
Actuarial Gains /(Loss)	(2.58)	26.21
Plan Assets at End of the Year	492.98	399.39
Liability/(Asset) Recognised in the Balance Sheet
Present value of defined benefit obligation as at the end of the year	673.21	534.68
Fair value of plan assets as at the end of the year	492.98	399.39
Net Liability recognised in the Balance Sheet
Current Liability	83.70	62.17
Non-Current Liability	96.53	73.12
Total	180.23	135.29
Cost of Defined Benefit Plan for the Year
Current Service Cost	59.73	51.62
Interest Cost	41.38	28.33
Expected Return on Plan Assets	(33.92)	(29.34)
Net Actuarial Loss	56.34	72.95
Net Cost Recognized in the Statement of Profit and Loss	123.53	123.56
Assumptions
Discount Rate	7.86%	7.79%
Future Salary Increase	6.50%	6.50%
Expected Rate of Return on Plan Assets	7.86%	8.00%
Attrition Rate	2.00%	2.00%
Mortality	Indian Assured Lives Mortality (2006-08)	Indian Assured Lives Mortality (2006-08)

Notes:
a) The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
b) The actual return on Plan Assets as furnished by Insurer is Rs. 31.34 Millions (Previous Year - Rs 55.55 Millions).
c) The entire Plan Assets are managed by the Insurer. The details with respect to the composition of investments in the fair value of Plan Assets have not been disclosed in the absence of the necessary information.
d) Discount rate is based on the brvailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term of the obligation.
e) Expected contribution to be made in the next financial year is Rs. 83.70 Millions (Previous Year - Rs. 62.17 Millions).

f) Experience Adjustments

Particulars	For the year ended 31 March 2016	For the year ended 31 March 2015	For the year ended 31 March 2014	For the year ended 31 March 2013	For the year ended 31 March 2012
	Rs. in Millions	Rs. in Millions	Rs. in Millions	Rs. in Millions	Rs. in Millions
Projected Benefit Obligation	673.21	534.68	371.80	302.14	195.64
Fair Value of Plan Assets	492.98	399.39	297.64	256.73	208.04
Deficit / (Surplus)	180.23	135.29	74.16	45.41	(12.40)
Experience Adjustments on Plan Liabilities - (Gains) / losses	53.76	99.16	18.71	73.25	40.67
Experience Adjustments on Plan Assets - (Gains) / losses	2.58	(26.21)	20.30	(2.23)	(1.65)

28.3 Compensated Absences

The key assumptions used in the computation of provision for compensated absences as per the actuarial valuation done by an Independent Actuary are as given below:

Particulars	For the year ended 31 March 2016	For the year ended 31 March 2015
Assumptions
Discount Rate	7.86%	7.79%
Future Salary Increase	6.50%	6.50%
Attrition Rate	2.00%	2.00%

2.1 Basis of Accounting

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year.

2.2 Use of Estimates

The brparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period like provision for warranties and expected recoveries, provision for contingencies, provision for employee benefits, provision for doubtful debts / advances, useful lives of fixed assets, allowance for slow moving inventories, provision for retrospective price increases on purchases, provision for taxation etc. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Estimates and underlying assumptions are reviewed on an ongoing basis. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.18 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised towards development cost comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis for creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and debrciated in accordance with the policies stated for debrciation of Tangible fixed assets and Intangible assets.

2.24 Service Tax Input Credit

Service tax input credit is accounted for in the books during the period when the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.

2.25 Insurance Claims

Insurance claims are accrued for on the basis of claims admitted / expected to be admitted and to the extent there is no uncertainty in receiving the claims.

2.27 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

1. CORPORATE INFORMATION

Hyundai Motor India Limited (HMIL or the Company) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea, having its manufacturing facilities in Chennai.

2.23 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.
Inter-segment revenue, where applicable, is accounted on the basis of transactions which are primarily determined based on market / fair value factors.
 
Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under 'unallocated revenue / expenses / assets / liabilities'.

29. Segment Reporting

The primary reporting of the Company has been made on the basis of business segments.  The Company has only one business segment as defined in Accounting Standard (AS) 17 on Segment Reporting, which is the 'Manufacture and Sale of Motor Vehicles, Engine, Transmission and Other Parts and Related After-Sales Activities'. Accordingly, the amounts appearing in these financial statements relate to this primary business segment.

General Note

The Disclosures w.r.t Segment Results and Liabilities of Secondary reportable segment is not mandatory as per Accounting Standard 17 and hence such disclosures are not available in the signed financial statements. However the same has been updated as Nil since it is mandatory field in the taxonomy.