Consolidated financial statement of JSW S.A. Capital Group for 2012

19. Employee benefit liabilities

	31 Dec 2012	31 Dec 2011
Employee benefit liabilities captured in the consolidated statement of financial position on account of:
– retirement and disability severance pays	209.1	175
– jubilee awards	315.5	246.7
– adjustment disability benefits	224.1	186.4
– in-kind allowance of coal for pensioners and recipients of disability benefits	1,360.7	1,202.5
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	164.1	147.2
– other employee benefits	80.9	56.2
Total	2,354.4	2,014.0
of which:
– long-term part	2,084.7	1,774.3
– short-term part	269.7	239.7

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	2012	2011 restated
Employee benefit costs captured in pre-tax profit on account of:
– retirement and disability severance pays	17.7	15.9
– jubilee awards	120.6	67.7
– adjustment disability benefits	9.6	9
– in-kind allowance of coal for pensioners and recipients of disability benefits	82	78.3
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	12.1	15.7
– other employee benefits	27.5	17.8
Total	269.5	204.4

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	2012	2011 restated
Employee benefit costs captured in other comprehensive income on account of:
– retirement and disability severance pays	35.6	20
– adjustment disability benefits	47.8	27.1
– in-kind allowance of coal for pensioners and recipients of disability benefits	138.3	(62.6)
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	11.4	(8.6)
– other employee benefits	0.9	-
Total	234	(24.1)

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Movement in employee benefit liabilities

	2012	2011 restated
As at 1 January	2,014.0	1,945.3
Current headcount cost	73.8	69.4
Interest cost	109.6	93.7
Actuarial loss/(profit) captured in pre-tax profit	86.1	41.3
Actuarial loss /(profit) captured in other comprehensive income	234	(24.1)
Total captured in comprehensive income	503.5	180.3
Benefits paid out	(163.1)	(156.0)
Acquisition of subsidiaries	-	44.4
As at 31 December	2,354.4	2,014.0

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Total amount of employee benefit costs captured in the consolidated statement of comprehensive income:

	2012	2011 restated
Cost of products, materials and merchandise sold	126.9	84.3
Cost of sales	0.8	(0.1)
Administrative costs	32.2	26.5
Financial costs	109.6	93.7
Total captured in pre-tax profit	269.5	204.4
Amount captured in other comprehensive income	234	(24.1)
Total captured in comprehensive income	503.5	180.3

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Key actuarial assumptions adopted for days ending the reporting periods:

	2012	2011
Discount rate	4.5%	5.5%-5.75%
Assumed average annual increase in the basis for calculating the provision for retirement and disability severance pays, jubilee awards, adjustment disability benefits	2.6%	2.3%-2.6%
Assumed average annual increase in the basis for calculating the provision for in-kind allowance of coal	2.7%	2.7%
Assumed average annual increase in the basis for calculating the provision for write-offs for the Company Social Benefit Fund	4.5%	4.6%
Weighted average employee mobility ratio	2.46%	2.21%

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Assumptions regarding future mortality rates and probability of the employee becoming a disability benefit recipient were estimated based on the statistical data from Polish survival tables for men and women published by the Central Statistical Office, as at the measurement date.