PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

121 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS b) Defined benefit plans The Company operates one post-employment defined benefit plan that provides gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month’s salary for each year of completed service at the time of retirement. In case of employees completing longer service periods, the Company’s scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972. Particulars As at March 31, 2021 As at March 31, 2020 (Restated) Amount recognised in the Balance Sheet in respect of Gratuity Present value of the defined benefit obligation at the end of the year 1,167.16 1,016.53 Fair value of the plan assets – – Net liability 1,167.16 1,016.53 Particulars As at March 31, 2021 As at March 31, 2020 (Restated) Movement in present value of defined benefit obligation Opening Liability 1,016.53 789.99 Current service cost 101.05 85.77 Interest cost 69.53 59.01 Actuarial /loss 9.40 92.33 Benefits paid (29.35) (10.57) Closing defined benefit obligation 1,167.16 1,016.53 Expense recognised in statement of profit and loss Current service cost 101.05 85.77 Interest on defined benefit obligations 69.53 59.01 Total 170.58 144.78 Remeasurements recognised in Other comprehensive income Change in financial assumptions (1.98) 53.42 Change in Demographic Assumptions – (4.81) Experience adjustments 11.38 43.72 Total 9.40 92.33 Total expense recognised 179.98 237.11 NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 31 Employee benefits – Post-employment benefit plans (continued)