PGHH_AR_2020

Notes to Financial Statements for the year ended June 30, 2020 Annual Report 2019-20 117 Company Overview Board's Report MD&A CG Report Financial Statement Procter & Gamble Hygiene and Health Care Limited Maturity profile of defined benefit obligation: Gratuity Plan ` in lakhs Within 1 year 223 1 - 2 year 322 2 - 3 year 301 3 - 4 year 362 4 - 5 year 391 5 - 10 years 2 467 Significant actuarial assumptions of the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonable possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. Gratuity Plan (Funded) If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ` 497 lakhs (increase by ` 546 lakhs) (as at June 30, 2019: decrease by ` 459 lakhs (increase by ` 505 lakhs)). If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by ` 520 lakhs (decrease by ` 479 lakhs) (as at June 30, 2019: increase by ` 489 lakhs (decrease by ` 451 lakhs)). Compensated absence plan (Unfunded) If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ` 20 lakhs (increase by ` 23 lakhs) (as at June 30, 2019: decrease by ` 16 lakhs (increase by ` 18 lakhs)). If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by ` 22 lakhs (decrease by ` 20 lakhs) (as at June 30, 2019: increase by ` 17 lakhs (decrease by ` 16 lakhs)). Post retirement medical benefit (PRMB) If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ` 18 lakhs (increase by ` 19 lakhs) (as at June 30, 2019: decrease by ` 17 lakhs (increase by ` 18 lakhs)). If the expected medical inflation rate increases (decreases) by 0.5%, the defined benefit obligation would increase by ` 16 lakhs (decrease by ` 15 lakhs) (as at June 30, 2019: increase by ` 16 lakhs (decrease by ` 15 lakhs)). The sensitivity analysis presented above may not be representative of the actual change of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method as the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the Balance Sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.