Employee Benefits
Accounting Valuations
We provide Actuarial Valuations of various employee benefit schemes (Gratuity, Leave Encashment, Pensions, etc) to be used for accounting of these benefits in the company's books.
The valuation reports are prepared as per the requirements of the accounting standards. In the Indian context the Accounting Standard 15 and Indian Accounting Standard 19 are relevant. We also assist clients for reporting under the International Accounting Standards (IFRS, USGAAP, FRS etc) or other country specific accounting standards.
If you interested in knowing about the type of long term benefits generally offered in India, follow this link:
Funding valuations/ asset-liability management
Funding of long-term benefits is an important part of managing the liability. We assist our clients to in arriving at an efficient funding schedule based on the cash-flow analysis of the liabilities and advising on additional considerations eg buy-out of liabilities, management of a closed plan etc.
Scheme designing or Modifications
We have helped our clients design and implement employee benefit schemes or welfare schemes like post retirement medical benefits, employee death in service benefits, long service awards, share based compensations and many more.
The advisory covers :
- actuarial aspects around long term solvency of scheme
- multiple design options to the management to make an informed decision
- cost impact assessment to avoid any shocks in the future
- regular monitoring of the scheme to advise corrective actions at appropriate time
M&A Advisory
Employee benefit obligations are often very sizable amounts on the balance sheet and they often escape scrutiny during the M&A process. We help our clients to determine the fair value of obligation in case of M&A as the assumptions used for accounting or funding valuations of these liabilities may not be always appropriate in case of valuing these liabilities at the time of M&A.
Budgeting exercises
Companies at times budget for the employee benefits in an ad-hoc manner during their monthly internal reporting. We can help companies to estimate their employee benefit expenses in a scientific manner so that the interim numbers are produced correctly.
Insurance Consulting
Practice Areas
- Life insurance
- General Insurance
Consulting Services Areas
Kapadia & Kochrekar provides actuarial support for the following insurance sector related areas:
Pricing and product development
Reserving and statutory filings
Peer Reviews
Solvency related studies
Experience Analysis
Corporate Solutions
The actuarial principles can be applied to diverse scenarios. We help corporates to evaluate their financial exposure to various long term programs and contracts. Here's a brief list of the same