ACTUARIAL CONSULTANCY
OF
M.L.SODHI
Actuary – M.L. Sodhi (Consulting
Actuary)
M.L Sodhi is a Consulting Actuary. He is a Fellow Member
of Institute of Actuaries of India (Membership Number –
00178). For more than 16 years he is actively involved in actuarial
valuations for Employee Benefits of the Defined
Benefit Nature for compliance of Accounting Standards of:-
·
INDIAN GAAP- AS-15 (Revised 2005)
·
Ind AS 19
·
International Accounting Standard (IAS-19 Revised
2011) of the IFRS
·
US GAAP –
(FAS-87, 88 & 158) etc.
Generally
valuations for compliance of Accounting Standards are as under:-
· Actuarial
Valuation for Gratuity Plans.
· Actuarial
Valuation for Earned Leave Plan.
· Actuarial
Valuation for Sick Leave Plan.
· Actuarial
Valuation for Defined Benefit Pension Plans.
· Actuarial
Valuation for Post Retirement Medical Benefit Plans.
· Actuarial
Valuation for Settlement Allowances on Retirement.
· Actuarial
Valuation for Long Service Award Plans/Incentive Plans.
· Actuarial
Valuation for Interest Rate Guarantee for Exempted Provident Funds.
· Actuarial Valuation
for other Defined Benefit.
Some of the main
points about the brief of M.L. Sodhi, his work experience, his human resources
& infrastructure, his clients and his terms and conditions etc. are:-
His Work Experience:- His work experience is spread over a
span of more than five decades. He began his career with Life
Insurance Corporation of India in various cadres. He retired from
the LIC in the year 1997 in the cadre of Senior
Divisional Manager. He was actively associated with the Group
Insurance Departments of the LIC at Delhi , Ajmer and Lucknow . He
also worked as Vice Principal of Zonal Training Centre of LIC at Gurgaon.
After retirement from LIC he worked as Actuaryto CGU Life
Insurance Company (a joint venture) for some period. He also worked
as Visiting Faculty with some Institutes and
Academies of repute.
His Human Resources & Infrastructure:- He is
supported by a team of highly skilled personnel equipped with the
expertise-statistical, actuarial and analytical essential to meet the changing
needs of Accounting Standards. His human resources are his
strength and asset. He has a office with adequate Infrastructure
(Computer Hardware).
His Clients: - His clients are spread in all
sectors of the Indian Economy, in the Public & Private Sectors
which covers areas of Manufacturing, Software, Technology, Electricity,
Electronics, Call Centers, Banks, Educational Institutes, Schools,
Universities, IIT’s, Hotels, Hospitals, Hospitality Companies etc.
etc. He also associated with Multinational Companies (MNC’s).
His Terms &
Conditions:- All services provided by him are subject to terms
& conditions stated when a job is accepted.
Our Services
We specialize in providing Actuarial Valuation Services, which
involve the evaluation of financial obligations to be discharged at a future
date. The specific areas of application are:-
· Actuarial Valuation
for Gratuity Plans (as per Payment of Gratuity Act, 1972 - amended or as per company specific
benefit structures).
· Actuarial Valuation
for Earned Leave Plan.
· Actuarial Valuation
for Sick Leave Plan.
· Actuarial Valuation
for Defined Benefit Pension Plans.
· Actuarial Valuation
for Post Retirement Medical Benefit Plans.
· Actuarial Valuation
for Settlement Allowances on Retirement.
· Actuarial Valuation
for Long Service Award Plans/Incentive Plans.
·
Actuarial
Valuation for Interest Rate Guarantee for Exempted Provident Funds as per the Guidance Note 29 issued by
the Institute of Actuaries of India under Revised AS 15
(Revised 2005).
· Any other Defined
Benefits not covered above.
The important items which need disclosure for compliance of the
above Accounting Standards for Employee Benefits are:
· Projected Benefit
Obligation at the Start of the Accounting Period
· Current Service Cost
· Past Service Cost
· Curtailments/settlements
· Interest Cost in
Indian GAAP
· Net Interest Cost
(Income) in IAS -19 (Revised 2011) under IFRS
· Other Comprehensive
Income and Reimbursements in IAS -19 (Revised 2011) under
IFRS
· Actuarial Gain/Losses
in Indian GAAP
· Projected Benefit
Obligation at the End of the Accounting Period
· Current and Non-
Current Obligations as required Revised Schedule VI in Indian GAAP
We operate strictly within regulations & norms of the
regulators while giving the actuarial services to our esteemed clients.
About
Defined Benefit Plans
Defined Benefit Plans involve accounting for them which is very
complex. It is so because actuarial assumptions are required to measure the
obligation and expenses. There is also a possibility of actuarial gains and
losses. Furthermore, actuarial gains and losses are split into the following
categories:-
· Actuarial (gains)/losses arising from
experience adjustment
· Actuarial (gains)/losses arising from changes
in Financial Assumptions
· Actuarial (gains)/losses arising from changes
in Demographic Assumptions
Furthermore, Defined Benefit Obligations are arrived at a
discounted basis because these obligations are likely to be settled many years
after the employees render the related service. The entire process to complete
this exercise would normally require the services of a qualified actuary.
Actuarial
Valuation Process
Actuarial Valuation process for Employee Benefits for Compliance
of Accounting Standards for Plans such as Gratuity, Leave Encashment, Post
Retirement Medical Benefits, Pension etc. etc. generally involves following
steps:-
·
Data preparation
·
Decision about assumptions both Financial and Demographic
·
Details of Fund Position if liability is funded
·
Method of Valuation (Projected Unit Credit - PUC Method)
·
Plan Provisions
·
Final Report and Disclosure Tables
Relevant
Accounting Standards
The Main Accounting Standards which involve Actuarial Inputs for
Valuations of Employee Benefits are as under:-
·
INDIAN GAAP- AS-15 (Revised 2005)
·
IndAS-19
·
International Accounting Standard (IAS-19 Revised 2011) of
the IFRS
· US GAAP – (FAS-87, 88 & 158) etc.
What is an
Actuary?
Actuary is an expert in risk management. He uses his
mathematical skills to help measure the probability and risk of future events.
His skill is used for decision making in the fields including healthcare,
pension, insurance, investments, employees benefits falling in category of
defined benefits. Actuaries in India belong
to the INSTITUTE OF ACTUARIES OF INDIA .
What an Actuary
Does?
Actuary is an expert in assessing the financial impact of
uncertain events happening in future. His skill is useful to make financial
decisions with more confidence. He does this by:-
·
Analyzing the past
·
Modeling the future
·
Assessing the risks involved, and
·
Communicating what the results mean in financial terms.
Contact
Information
Address:-
M.L.Sodhi - Actuary
Fellow of the Institute of Actuaries of India
Fellow Membership Number : 00178
610, 6th Floor,
Shahpuri's Tirath Singh Tower ,
C-58, Community Centre, Janak Puri,
New Delhi-110058
Phone no: 011-45502548 (Office)
Mobile no: +919312723424, +919212381304,
+919211637063
E-mail: mlsodhi@yahoo.co.in
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