Page 199 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 60-146 Standalone

service in case of retirement or death while in employment. In case of termination, the benefit is equivalent to fifteen days salary last
drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years
of continuous service.

The trustees of the trust fund are responsible for the overall governance of the plan and to act in accordance with the provisions of
the trust deed and rules in the best interests of the plan participants. They are tasked with periodic reviews of the solvency of the
fund and play a role in the long-term investment, risk management and funding strategy.
The Company also provides post retirement medical benefits to eligible employees under which employees at Mithapur who
have retired from service of the Company are entitled for free medical facility at the Company hospital during their lifetime. Other
employees are entitled to domiciliary treatment exceeding the entitled limits for the treatments covered under the Health Insurance
Scheme upto slabs defined in the scheme. The floater mediclaim policy also covers retired employees based on eligibility, for such
benefit.
The Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors
who have completed ten years of continuous service in Tata Group and three years of continuous service as Managing Director/
Executive Director or five years of continuous service as Managing Director/Executive Director. The directors are entitled upto seventy
five percent of last drawn salary for life and on death 50% of the pension is payable to the spouse for the rest of his/her life.
Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed one
year of continuous service. In case of untimely death of the employee, nominated beneficiary is entitled to an amount equal to the
last drawn salary (Basic Salary, DA and FDA) till the normal retirement date of the deceased employee.
The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at
March 31, 2021. The present value of the defined benefit obligations and the related current service cost and past service cost, were
measured using the Projected Unit Credit Method.
(c) The following tables set out the funded status and amounts recognised in the Company's Standalone Financial Statements
as at March 31, 2021 for the Defined Benefit Plans.
1 Changes in the defined benefit obligation: ` in crore
As at March 31, 2021 As at March 31, 2020
Post Post
retirement Directors' Family retirement Directors' Family
Gratuity retirement benefit Gratuity retirement benefit
medical medical
benefits obligations scheme benefits obligations scheme
At the beginning of the year 84.97 78.27 55.08 11.66 75.41 48.93 43.12 11.51
Current service cost 4.38 2.28 0.69 1.18 3.38 1.19 0.45 0.99
Past service cost 14.14 - - - - 7.55 - -
Interest cost 4.80 4.68 3.25 0.68 5.07 3.55 3.22 0.76
Remeasurement (gain)/loss
Actuarial (gain) / loss arising from:
- Change in financial assumptions (2.80) (6.26) (3.05) (0.34) 9.21 18.19 10.18 1.17
- Experience adjustments (4.58) 3.14 (0.99) (1.27) 3.14 2.63 0.42 (0.76)
Transfer out * - - - - (3.77) - - -
Benefits paid (9.16) (1.73) (2.41) (1.03) (7.47) (1.69) (2.31) (0.95)
91.75 80.38 52.57 10.88 84.97 80.35 55.08 12.72
Extinguishment to discontinued
operations - - - - - (2.08) - (1.06)
At the end of the year 91.75 80.38 52.57 10.88 84.97 78.27 55.08 11.66
*Pertaining to consumer product business.

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