Gillette_India_Limited_AR_20

Annual Report 2019-20 84 Notes to Financial Statements for the year ended June 30, 2020 Gillette India Limited 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 : — S uperannuation Fund as per Company policy administered by the Life Insurance Corporation of India. — S tate 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 — G ratuity for all employees administered through a trust, which is administered through trustees and / or Life Insurance Corporation of India, where one of the group company is also the participant. — P rovident Fund for all permanent employees is administered through a trust. The Provident Fund is administered by trustees of an independently constituted common trust recognised by the Income Tax authorities where two other group Companies are also participants. Periodic contributions to the Fund are charged to revenue and when services are rendered by the employees. The Company has an obligation to make good the shortfall, if any, between the return from the investment of the trust and notified interest rate by the Government. 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.