PGHH_AR_2020

Notes to Financial Statements for the year ended June 30, 2020 Annual Report 2019-20 112 Procter & Gamble Hygiene and Health Care Limited 28.1 Basic and Diluted earnings per share The earnings and weighted average number of equity shares used in the calculation of basic and diluted earnings per share are as follows: Year ended June 30, 2020 Year ended June 30, 2019 ` in lakhs ` in lakhs Earnings used in calculation of basic and diluted earnings per share from operations 43 308 41 913 Weighted average number of equity shares for the purposes of basic and diluted earnings per share 3 24 60 736 3 24 60 736 29 Employee benefit plans 29.1 De fined contribution plans The Company operates defined contribution provident fund, superannuation fund and employees’ state insurance plan for all qualifying employees of the Company. Where employees leave the plan, the contributions payable by the Company is reduced by the amount of forfeited contributions. The employees of the Company are members of a state-managed employer’s contribution to employees’ state insurance plan, provident fund operated by the government and superannuation fund which is administered through a trust that is legally separated from the Company. The assets of the plan is held separately from those of the Company in funds under the control of trustees. The Company is required to contribute a specific percentage of payroll costs to the contribution schemes to fund the benefit. The only obligation of the Company with respect to the contribution plan is to make the specified contributions. The total expense recognised in the statement of profit and loss of ` 1 069 lakhs (for the year ended June 30, 2019: ` 1 003 lakhs) for provident fund, ` 122 lakhs (for the year ended June 30, 2019: ` 120 lakhs) for superannuation fund represent contributions payable to these plans by the Company at rates specified in the rules of the plans. As at June 30, 2020, contributions of ` 10 lakhs (as at June 30, 2019: ` 10 lakhs) due in respect of 2019 - 2020 (2018 - 2019) reporting period had not been paid over to the plans. The amounts were paid subsequent to the end of the reporting periods. 29.2 Defined benefit plans a) Gratuity Plan (Funded) The Company sponsors funded defined benefit gratuity plan for all eligible employees of the Company. The Company’s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered trust. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The gratuity plan is administered by a separate trust that is legally separated from the Company. The board of the trust is composed of representatives from both employer and employees. The board of the trust is required by law and by its articles of association to act in the interest of the trust and of all relevant stakeholders in the scheme, i.e. active employees, inactive employees, retirees, employer. The board of the trust is responsible for the investment policy with regard to the assets of the trust. b) Post Retirement Medical Benefit (PRMB) (Unfunded) The Company provides certain post-employment medical benefits to employees. Under the scheme, employees get medical benefits subject to certain limits of amount, periods after retirement and types of benefits, depending on their grade at the time of retirement. Employees separated from the Company as part of early separation scheme are also covered under the scheme. The liability for post retirement medical scheme is based on an independent actuarial valuation. c) Compensated absences for Plant technicians (Unfunded) The Company also provides for compensa ted absences for plant technicians which allows for encashment of leave on termination/retirement of service or leave with pay subject to certain rules.