Page 241 - Tata_Chemicals_yearly-reports-2017-18

37. Finance leases (including hire purchase) and operating leases

Finance lease commitments

The Group has finance lease contracts for certain items of plant and machinery and vehicles. The Group’s obligations under finance leases are
secured by the lessor’s title to the leased assets.

Future minimum lease payments (‘MLP’) under finance lease contracts together with the present value of the net minimum lease payments are
as follows:

` in crore
Particulars As at 31 March, 2018 As at 31 March, 2017
Minimum lease Present value of Minimum lease Present value of
payments MLP payments MLP Integrated Report
Within one year 7.21 5.37 26.57 23.54
After one year but not more than five years 21.36 18.43 15.66 12.19
More than five years - - 7.87 7.31
Total minimum lease payments 28.57 23.80 50.10 43.04
Less : amounts representing finance charges 4.77 7.06
Present value of minimum lease payments 23.80 43.04
Included in the financial statements as:
- Non-current borrowings (note 18) 18.43 19.50
- Current maturity of finance lease obligations (note 19) 5.37 27.54
23.80 43.04
Interest rates ranging from 8% to 12% per annum, underlying all obligations under finance leases, are fixed at respective contract dates. Statutory Reports

Operating leases
Particulars As at As at
31 March, 2018 31 March, 2017
Total of minimum lease payments 314.47 279.74
(a) The total of minimum lease payments for a period:
(i) Not later than one year 83.60 89.41
(ii) Later than one year and not later than five years 138.28 102.59
(iii) Later than five years 92.59 87.74
(b) Lease payments recognised (non-cancellable operating lease)* 114.65 119.91
* In the Consolidated Statement of Profit and Loss for the year (included in rent and cost of materials consumed)

(PSOR\HH EHQHȴWV REOLJDWLRQV Financial Statements

(A) In respect of the Company and domestic subsidiaries
The Company and its domestic subsidiaries make contribution towards provident fund, in substance a defined contribution retirement
benefit plan and towards pension and superannuation funds, 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 ` 19.25 crore (2017: ` 19.14 crore) has been charged to the Consolidated Statement
of Profit and Loss.

Consolidated Financial Statements 239