PGHH_AR_2020

Notes to Financial Statements for the year ended June 30, 2020 Annual Report 2019-20 86 Procter & Gamble Hygiene and Health Care Limited Exchange differences on such translations are recognised in the Statement of Profit and Loss in the period which they arise. d. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred. e. Employee benefits i) Post-employment Benefits a) Defined Contribution Plans: The Company has Defined Contribution Plans for post employment benefits charged to the Statement of Profit and Loss, in the form of - Provident Fund administered by the Regional Provident Fund Commissioner; - Superannuation Fund as per Company policy administered by Company managed trust; and - State Defined Contribution Plans: Employer’s Contribution to Employees’ State Insurance. b) Defined Benefit Plans: Funded Plan: The Company has Defined Benefit Plan for post employment benefits in the form of - Gratuity for all employees administered through trust. Unfunded Plan: The Company has unfunded Defined Benefit Plans in the form of Post Retirement Medical Benefits (PRMB) and Compensated Absences (plant technicians) as per its policy. Liability for the above defined benefit plans is provided on the basis of valuation, as at the Balance Sheet date, carried out by independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method. The classification of the Company’s net obligation into current and non-current is as per the actuarial valuation report. Remeasurements, comprising actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to Retained Earnings through Other Comprehensive Income in the period in which they occur. Remeasurements are not reclassified to the Statement of Profit and Loss in subsequent periods. Past service costs are recognised in the Statement of Profit and Loss on the earlier of:  The date of the plan amendment or curtailment, and  The date that the Company recognises related restructuring costs Net interest is calculated by applying the discount rate at the beginning of the year to the net defined benefit liability or asset. The company recognises the following changes in the net defined benefit obligation as an expense in the Statement of Profit and Loss:  Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and  Net interest expense or income