Atul Ltd 2020-21

207 Statutory Report 22 - 87 Financial Statements 88 - 229 Corporate Overview 01 - 21 Note 29.6 Employee benefit obligations (continued) A large portion of assets consists of insurance funds; the Group also invests in corporate bonds and special deposit scheme. 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, 2022, are ` 4 cr. The weighted average duration of the defined benefit obligation is six years. The expected maturity analysis of gratuity is as follows: ( ` cr) Particulars Less than a year Between 1 - 2 year Between 2 - 5 year Over 5 years Total Expected defined benefit obligation (gratuity) As at March 31, 2021 9.88 6.68 23.59 37.96 78.10 As at March 31, 2020 10.19 8.48 20.34 25.97 64.97 Provident fund In case of certain employees, the provident fund contribution is made to a trust administered by the Group. The actuary has provided a valuation of provident fund liability based on the assumptions listed below and has determined that there is no shortfall as at March 31, 2021. ( ` cr) Expenses recognised for the year ended on March 31, 2021 (included in Note 26) As at March 31, 2021 As at March 31, 2020 i) Defined benefit obligation 11.89 10.81 ii) Fund 12.21 11.14 iii) Net asset | (liability) 0.32 0.33 iv) Charge to the Consolidated Statement of Profit and Loss during the year 0.23 0.18 The assumptions used in determining the present value of obligation of the interest rate guarantee under deterministic approach are: Particulars 2020-21 2019-20 i) Mortality rate Indian Assured Lives Mortality (2006-08) ultimate Indian Assured Lives Mortality (2006-08) ultimate ii) Withdrawal rate 5% p.a. for all age groups 5% p.a. for all age groups iii) Rate of discount 6.33% 6.24% iv) Expected rate of interest 8.50% 8.50% v) Retirement age 60 years 60 years vi) Guaranteed rate of interest 8.50% 8.50% b) Defined contribution plans Provident and other funds Amount of ` 15.48 cr (March 31, 2020: ` 15.04 cr) {net of ` 0.17 cr (March 31, 2021: ` 0.26 cr) from the Pradhan Mantri Rojgar Protsahan Yojana} is recognised as an expense and included in Note 26 ‘Contribution to Provident and other funds’. Compensated absences Amount of ` 8.38 cr (March 31, 2020 : ` 5.69 cr) is recognised as an expense and included in Note 26 ‘ Salaries, wages and bonus’. c) The Parliament of India has approved the Code on Social Security, 2020 (the Code), which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.