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as they fall due. Such benefits are classified as Changes in the present value of the defined benefit
defined Contribution Schemes as the group does obligation resulting from plan amendments or
not carry any further obligations, apart from the curtailments are recognised immediately in the
contributions made. Consolidated Statement profit and loss as past
service cost.
Defined benefit plans
Contributions to a provident Fund are made (ii) Short-term employee benefits
to trusts administered by the group/regional the short-term employee benefits expected to
provident Fund Commissioners and are charged be paid in exchange for the services rendered by
to the Consolidated Statement of profit and loss employees is recognised during the period when
as incurred. the group is liable for the contribution the employee renders the service. these benefits
and any shortfall in interest between the amount include compensated absences such as paid
of interest realised by the investments and the annual leave and performance incentives which
interest payable to members at the rate declared are expected to occur within twelve months after
by the government of India in respect of the trust the end of the period in which the employee
administered by the group companies. renders the related services.

For defined benefit schemes in the form of gratuity the cost of compensated absences is accounted
fund, provident fund, post-retirement medical as under:
benefits, pension liabilities (including directors) and (a) In case of accumulating compensated
family benefit scheme, the cost of providing benefits absences, when employees render service
is actuarially determined using the projected unit that increase their entitlement of future
credit method, with actuarial valuations being compensated absences; and
carried out at each Balance Sheet date.
(b) In case of non - accumulating compensated
the retirement benefit obligation recognised in absence, when the absences occur.
the Consolidated Balance Sheet represents the
present value of the defined benefit obligation as (iii) Other long-term employee benefits
reduced by the fair value of scheme assets. Compensated absences which are not expected
to occur within twelve months after the end of the
the present value of the said obligation is period in which the employee renders the related
determined by discounting the estimated future services are recognised as a liability. the cost of
cash outflows, using market yields of government providing benefits is actuarially determined using
bonds of equivalent term and currency to the the projected unit credit method, with actuarial
liability. valuations being carried out at each Balance
Sheet date. long Service awards are recognised
the interest income / (expense) are calculated as a liability at the present value of the obligation
by applying the discount rate to the net defined at the Balance Sheet date. all gains/losses due to
benefit liability or asset. the net interest income actuarial valuations are immediately recognised in
/ (expense) on the net defined benefit liability is the Consolidated Statement of profit and loss.
recognised in the Consolidated Statement of profit
and loss. 2.20.2 In respect of overseas subsidiaries, the liabilities for
employee benefits are determined and accounted
remeasurements, comprising of actuarial gains as per the regulations and principles followed in the
and losses, the effect of the asset ceiling (if any), respective countries.
are recognised immediately in the Consolidated (i) Defined contribution schemes
Balance Sheet with a corresponding charge or
credit to retained earnings through oCI in the the uSa subsidiaries sponsors defined
period in which they occur. remeasurements are contribution retirement savings plans.
not reclassified to the Consolidated Statement of participation in one of these plans is available to
profit and loss in subsequent periods. substantially all represented and non-represented

260 I Integrated annual report 2019-20