Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 144 Atul Ltd | Annual Report 2019-20 ii) Changes in bond yields A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of other bond holdings. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. It has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment will not have a material impact on the overall level of assets. A large portion of assets consist insurance funds, although it also invests in corporate bonds and special deposit schemes. The plan asset mix is in compliance with the requirements of the respective local regulations. Expected contributions to post-employment benefit plans for the year ending March 31, 2021 are ` 3.03 cr. The weighted average duration of the defined benefit obligation is six years (2019-20: six years). The expected maturity analysis of gratuity is as follows: ( ` cr) Particulars Less than a year Between 1 - 2 years Between 2 - 5 years Over 5 years Total Defined benefit obligation (gratuity) As at March 31, 2020 9.83 8.23 19.59 24.51 62.16 As at March 31, 2019 12.29 6.34 17.79 25.55 61.97 Provident fund: TheCompany has establishedan employee provident fund trust for employees basedat Ankleshwar location. It is administered by the Company to which both the employee and the employer make monthly contributions equal to 12% of basic salary of employee. The contribution of the Company to the provident fund for all employees is charged to the Standalone Statement of Profit and Loss. In case of any liability arising due to shortfall between the return from its investments and the administered interest rate, the same is required to be provided for by the Company. The actuary has provided an actuarial valuation and indicated that the interest shortfall liability is ` nil. The Company has contributed the following amounts towards provident fund during the respective period ended: ( ` cr) Expenses recognised for the year ended March 31, 2020 (included in Note 25) As at March 31, 2020 As at March 31, 2019 i) Defined benefit obligation 10.81 10.29 ii) Funds 11.14 10.25 iii) Net assets | (liabilities) 0.33 (0.04) iv) Charge to the Standalone Statement of Profit and Loss during the year 0.18 0.28 The assumptions used in determining the present value of obligation: Particulars 2019-20 2018-19 i) Mortality rate Indian Assured Lives Mortality (2006-08) Ultimate Indian Assured Lives Mortality (2006-08) Ultimate ii) Withdrawal rate 5% pa for all age groups 5% pa for all age groups iii) Rate of discount 6.24% 7.22% iv) Expected rate of interest 8.50% 8.65% v) Retirement age 60 years 60 years vi) Guaranteed rate of interest 8.50% 8.65% Note 28.6 Employee benefit obligations (continued)