Gillette_India_Limited_AR_20

Annual Report 2019-20 112 Notes to Financial Statements for the year ended June 30, 2020 Gillette India Limited A. The principal assumptions used for the purposes of the actuarial valuations were as follows: Valuations as at June 30, 2020 June 30, 2019 Discount rate Gratuity plan (funded) 6.50% 7.00% Compensated absence plan (unfunded) 6.50% 7.00% Post retirement medical benefit (PRMB) (unfunded) 6.50% 7.00% Expected rate of salary increase Gratuity plan (funded) 9.00% 9.00% Compensated absence plan (unfunded) 9.00% 9.00% Post retirement medical benefit (PRMB) (unfunded) NA NA Medical Inflation rate Post retirement medical benefit (PRMB) (unfunded) 5.50% 5.50% Average longevity at retirement age for current beneficiaries of the plan (years) Post retirement medical benefit (PRMB) (unfunded) 19.14 20.68 Demographic Assumptions Mortality in Service: Indian Assured Lives Mortality (2006-08) Ultimate table Mortality in Retirement: LIC Annuity Rates (1996-98) Ultimate table B. Amounts recognised in the Statement of profit and loss in respect of these defined benefit plans are as follows: Year ended June 30, 2020 ` in lakhs Year ended June 30, 2019 ` in lakhs Gratuity Plan (Funded) Service costs: Current service cost 469 396 Net interest expense 308 239 Components of defined benefit costs recognised in the statement of profit and loss (A) 777 635 Remeasurement on the net defined benefit liability: Return on plan assets (excluding amounts included in net interest expense) (25) (4) Actuarial (gains) / losses arising from changes in assumptions 367 611 Actuarial (gains) / losses arising from changes in demographic assumptions (11) 63 Actuarial (gains) / losses arising from changes in experience adjustments (159) 119 Components of defined benefit costs recognised in other comprehensive income (B) 172 789 Total (C=(A+B)) 949 1 424