Page 296 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Consolidated

control the use of an identified assets, the Group payments associated with these leases as an expense The retirement benefit obligation The cost of compensated absences is accounted
assesses whether: (i) the contact involves the use of an on a straight-line basis over the lease term. The Group recognised in the Consolidated Balance as under:
identified asset (ii) the Group has substantially all of applied a single discount rate to a portfolio of leases Sheet represents the present value of the
the economic benefits from use of the asset through of similar assets in similar economic environment with defined benefit obligation as reduced by (a) In case of accumulating compensated
the period of the lease and (iii) the Group has the right a similar end date. the fair value of scheme assets. absences, when employees render service
to direct the use of the asset. that increase their entitlement of future
2.20 Employee benefits plans The present value of the said obligation is compensated absences; and
As a lessee, The Group recognises a right-of-use asset 2.20.1 In respect of the Company and domestic determined by discounting the estimated
and a lease liability at the lease commencement subsidiaries future cash outflows, using market yields (b) In case of non - accumulating compensated
date. The right¬-of-use asset is initially measured at Employee benefits consist of provident of government bonds of equivalent term absence, when the absences occur.
cost, which comprises the initial amount of the lease fund, superannuation fund, gratuity fund, and currency to the liability.
liability adjusted for any lease payments made at or compensated absences, long service (iii) Other long-term employee benefits
before the commencement date, plus any initial direct awards, post-retirement medical benefits, The interest income / (expense) are Compensated absences which are not
costs incurred and an estimate of costs to dismantle directors’ retirement obligations and family calculated by applying the discount rate expected to occur within twelve months
and remove the underlying asset or to restore the benefit scheme. to the net defined benefit liability or asset. after the end of the period in which the
underlying asset or the site on which it is located, less The net interest income / (expense) on the employee renders the related services
any lease incentives received. (i) Post-employment benefit plans net defined benefit liability is recognised are recognised as a liability. The cost of
Defined contribution plans in the Consolidated Statement of Profit providing benefits is actuarially determined
The right-of-use asset is subsequently depreciated and Loss. using the projected unit credit method,
using the straight-line method from the Payments to a defined contribution with actuarial valuations being carried out
commencement date to the earlier of the end of the retirement benefit scheme for eligible Remeasurements, comprising of at each Balance Sheet date. Long Service
useful life of the right-of-use asset or the end of the employees in the form of superannuation actuarial gains and losses, the effect of Awards are recognised as a liability at
lease term. The estimated useful lives of right-of-use fund are charged as an expense as they fall the asset ceiling (if any), are recognised the present value of the obligation at the
assets are determined on the same basis as those of due. Such benefits are classified as Defined immediately in the Consolidated Balance Balance Sheet date. All gains/losses due
property and equipment. In addition, the right-of-use Contribution Schemes as the Group does Sheet with a corresponding charge or to actuarial valuations are immediately
asset is periodically reduced by impairment losses, if not carry any further obligations, apart credit to retained earnings through recognised in the Consolidated Statement
any, and adjusted for certain remeasurements of the from the contributions made. OCI in the period in which they occur. of Profit and Loss.
lease liability. Remeasurements are not reclassified to the
Defined benefit plans 2.20.2 In respect of overseas subsidiaries, the
Consolidated Statement of Profit and Loss
The lease liability is initially measured at the present Contributions to a Provident Fund are in subsequent periods. liabilities for employee benefits are determined
value of the lease payments that are not paid at the made to Trusts administered by the Group/ and accounted as per the regulations and
commencement date, discounted using the interest Regional Provident Fund Commissioners Changes in the present value of the principles followed in the respective countries.
. For leases with reasonably similar characteristics, the and are charged to the Consolidated defined benefit obligation resulting
Group, on a lease by lease basis, may adopt either the Statement of Profit and Loss as incurred. from plan amendments or curtailments (i) Defined contribution schemes
incremental borrowing rate specific to the lease or The Group is liable for the contribution are recognised immediately in the The USA subsidiaries sponsors defined
the incremental borrowing rate for the portfolio as and any shortfall in interest between Consolidated Statement Profit and Loss as contribution retirement savings plans.
a whole. the amount of interest realised by the past service cost. Participation in one of these plans is
investments and the interest payable available to substantially all represented
Lease payments included in the measurement of the to members at the rate declared by the (ii) Short-term employee benefits and non-represented employees. These
lease liability comprise the fixed payments, including Government of India in respect of the Trust subsidiaries match employee contributions
in-substance fixed payments and lease payments in administered by the Group companies. The short-term employee benefits up to certain predefined limits for non-
an optional renewal period if the Group is reasonably expected to be paid in exchange for represented employees based upon
certain to exercise an extension option; For defined benefit schemes in the form the services rendered by employees is eligible compensation and the employee’s
of gratuity fund, provident fund, post- recognised during the period when the contribution rate. Contributions are
The lease liability is measured at amortised cost using retirement medical benefits, pension employee renders the service. These charged as expense as they fall due.
the effective interest method. liabilities (including directors) and family benefits include compensated absences
benefit scheme, the cost of providing such as paid annual leave and performance For the UK and Kenyan subsidiaries, the
The Group has elected not to recognise right-of-use benefits is actuarially determined using incentives which are expected to occur contributions payable during the period
assets and lease liabilities for short-term leases that the projected unit credit method, with within twelve months after the end of the under defined contribution schemes are
have a lease term of 12 months or less and leases actuarial valuations being carried out at period in which the employee renders the charged to the Consolidated Statement of
of low-value assets. The Group recognises the lease each Balance Sheet date. related services. Profit and Loss.

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