Page 318 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

40. Employee benefits obligations
(a) In respect of the Company and domestic subsidiaries
The Company and its domestic subsidiaries make contributions towards provident fund, in substance a defined benefit retirement
plan and towards pension and superannuation funds which are defined contribution retirement plans for qualifying employees. The
provident fund is administered by the Trustees of the Provident Fund and the superannuation fund is administered by the Trustees
of the Superannuation Fund. The Company and its domestic subsidiaries are liable to pay to the provident fund to the extent of the
amount contributed and any shortfall in the fund assets based on Government specified minimum rates of return relating to current
services. Such contribution and shortfall if any, are recognised as an expense in the year in which these are incurred.
On account of the above contribution plans, a sum of ` 15.67 crore (2021: ` 15.58 crore) has been charged to the Consolidated
Statement of Profit and Loss.

The Company and its domestic subsidiaries make annual contributions to the Employees’ Gratuity Trust and to the Employees’ Group
Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, for funding the defined benefit plans for qualifying
employees. The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on
termination of employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half
month, three fourth month and full month salary last drawn for each completed year of service depending upon the completed
years of continuous 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.
Domestic subsidiaries also include a supplemental pay scheme (a life long pension), an unfunded scheme, covering certain Executives.
Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed one
year of continuous service. Incase, of untimely death of the employee, the 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, 2022. 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.
(b) In respect of overseas subsidiaries, the liabilities for employee benefits are determined and accounted as per the regulations
and principles followed in the respective countries.
(i) UK and Kenyan subsidiaries
The Homefield UK Private Limited - Group operates defined contribution schemes, under which costs of ` 15.36 crore
(2021: ` 15.26 crore) are charged to the Consolidated Statement of Profit and Loss on the basis of contributions payable.
The Group also operates defined benefit schemes, the assets of which are held in separate trustee administered funds.
Defined benefit scheme - Tata Chemicals Europe Limited (‘TCEL’)
TCEL operates defined benefit pension arrangements in the UK, which were available to substantially all employees but are
now closed to new members and closed for further accruals from May 31, 2016.

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