Page 338 - Tata Chemical Annual Report_2022-2023

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

Health Insurance Scheme upto slabs defined in the scheme. The floater mediclaim policy also covers retired employees based the contribution rates with agreement from the BSL after taking advice from the independent actuary. The most recent
on eligibility, for such benefit. triennial valuation was performed at December 31, 2019 and a payment schedule was agreed between the Trustees and
BSL whereby BSL will make contributions which aim to cover the expenses of the scheme.
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/ The present value of the defined benefit obligation was measured using the projected unit method. The assumptions which
Executive Director or five years of continuous service as Managing Director/Executive Director. The directors are entitled upto had the most significant effect on the results of the valuation were those relating to investment returns and price inflation.
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. (ii) USA subsidiaries - Tata Chemicals North America and its subsidiaries ('TCNA')
TCNA also sponsor defined contribution retirement savings plans. Participation in one of these plans is available to
Domestic subsidiaries also include a supplemental pay scheme (a life long pension), an unfunded scheme, covering substantially all represented and non-represented employees. TCNA matches employee contributions up to certain
certain Executives. predefined limits for non-represented employees based upon eligible compensation and the employee’s contribution rate.

Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed TCNA’s contribution to these plans was ` 11 crore (2022: ` 9 crore)
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. Pension plans and other post retirement benefit
TCNA maintains several defined benefit pension plans covering hourly employees hired/rehired on or before June 30, 2017
The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at and salaried employees hired/rehired on or before September 6, 2016. A participating employee’s annual post retirement
March 31, 2023. The present value of the defined benefit obligations and the related current service cost and past service cost, pension benefit is determined by the employee’s credited service and, in most plans, final average annual earnings with the
were measured using the Projected Unit Credit Method.
TCNA. Vesting requirements are five years. TCNA’s funding policy is to annually contribute the statutorily required minimum
amount as actuarially determined. TCNA also maintains several plans providing non-pension post retirement benefits
(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. covering substantially all hourly and certain salaried employees. TCNA funds these benefits on a pay-as-you-go basis.
(i) UK and Kenyan subsidiaries Plan assets
The Homefield UK Private Limited - Group operates defined contribution schemes, under which costs of ` 14 crore (2022: The assets of TCNA’s defined benefit plans are managed on a co-mingled basis in a Master Trust. The investment policy
` 15 crore) are charged to the Consolidated Statement of Profit and Loss on the basis of contributions payable. and allocation of the assets in the Master Trust were approved by TCNA’s Investment Committee, which has oversight
responsibility for the retirement plans.
The Group also operates defined benefit schemes, the assets of which are held in separate trustee administered funds.
The pension fund assets are invested in accordance with the statement of Investment Policies and Procedures adopted by
Defined benefit scheme - Tata Chemicals Europe Limited ('TCEL') TCNA, which are reviewed annually. Pension fund assets are invested on a going-concern basis with the primary objective
TCEL operates defined benefit pension arrangements in the UK, which were available to substantially all employees but of providing reasonable rates of return consistent with available market opportunities, a quality standard of investment,
are now closed to new members and closed for further accruals from May 31, 2016. and moderate levels of risk.

The scheme is funded by the payment of contributions to a separately administered trust fund. The fund is valued every (C) The following tables set out the funded status and amounts recognised in the Group's Consolidated
three years using the projected unit method by an independent, professionally qualified actuary. The Trustees of the fund Financial Statements as at March 31, 2023 and March 31, 2022 for the Defined benefits plans:
set the contribution rates with agreement from TCEL after taking advice from the independent actuary. The most recent
triennial valuation was performed at December 31, 2020, and a payment schedule was agreed between the trustees of the (i) Changes in the defined benefit obligation:
pension scheme and TCEL whereby TCEL will make contributions towards the deficit in the fund from April 2022 to May ` in crore
2039. TCEL will also continue to make contributions towards the expenses of the fund. Particulars Year ended March 31, 2023 Year ended March 31, 2022
Funded Unfunded Funded Unfunded
The present value of the defined benefit obligation was measured using the projected unit method. The projected unit At the beginning of the year 5,181 256 5,606 260
method is an accrued benefits valuation method in which the scheme liabilities make allowance for projected benefit Current service cost 45 5 49 6
increases for employed members. The assumptions which had the most significant effect on the results of the valuation Interest cost 169 16 147 13
were those relating to investment returns and price inflation. Remeasurements (gain)/loss
Actuarial (gain) / loss arising from:
Defined benefit scheme - British Salt Limited ('BSL') - Changes in financial assumptions (1,118) (22) (344) (16)
BSL operates defined benefit pension arrangements in the UK. Eligible employees of the salt business were members of - Changes in demographic assumptions (28) - (14) -
the British Salt Retirement Income and Life Assurance Plan ('RILA') which was closed to future accrual and new members - Experience adjustments 110 (7) 51 (9)
on January 31, 2008. Benefits paid (258) (12) (348) (13)
Past Service Cost - 21 - 12
RILA is funded by the payment of contributions to a separately administered trust fund. The fund is valued every three Exchange fluctuations 186 6 34 3
years using the projected unit method by an independent, professionally qualified actuary. The Trustees of the fund set At the end of the year 4,287 263 5,181 256

336 337