Gillette_India_Limited_AR_20

Annual Report 2019-20 102 Notes to Financial Statements for the year ended June 30, 2020 Gillette India Limited 13.6 Contingency reserve As at June 30, 2020 ` in lakhs As at June 30, 2019 ` in lakhs Balance at the beginning of year 12 900 12 900 Transferred from retained earnings — — Balance at the end of year 12 900 12 900 The Company had in earlier years filed a writ petition in the High Court of Himachal Pradesh at Shimla challenging the premature withdrawal of Excise duty exemption for packing/repacking activities at its Baddi Manufacturing Facility. The High Court has since passed an order on April 24, 2008 in favour of the Company and has struck down the notification withdrawing the excise exemption. The Excise department has preferred an appeal on October 31, 2009 with the Hon'ble Supreme Court of India against the said order of the High Court. The Company has, as a matter of prudence, created a Contingency Reserve of ` 12 900 lakhs (Previous Year: ` 12 900 lakhs) by way of appropriation of profits to the extent of excise duty payable (net of Cenvat credit) on dispatches made from the Baddi plant.This Reserve will be reviewed as and when this litigation is finally decided. The appropriation has been made till March 9, 2017, being the last date of excise exemption. 14 Provisions As at June 30, 2020 ` in lakhs As at June 30, 2019 ` in lakhs Employee benefits (refer note (i) below) 6 165 5 132 Other provisions (refer note (ii) below) 2 800 2 800 8 965 7 932 Current 2 824 2 822 Non - current 6 141 5 110 8 965 7 932 Other provisions As at June 30, 2020 ` in lakhs As at June 30, 2019 ` in lakhs Balance at the beginning of year 2 800 — Additional provision recognised — 2 800 Reduction arising from payments — — Balance at the end of year 2 800 2 800 (i) The provision for employee benefits includes gratuity, post retirement medical benefits (PRMB) and compensated absences.For other disclosures refer note 29. (ii) Other provisions are in respect of an estimated liability that may arise from a potential demand against the Company.