GSK_ Annual_Report_2021-22

Notes to the Consolidated Financial Statements for the year ended March 31, 2022 233 Consequently, the Parent Company had in prior years recognised provisions relating to estimates of loss on account of sales returns, stocks withdrawn and inventories held including incidental costs thereto and other related costs. During the previous year there has been reversal of these provisions of ` 34,80.26 Lakhs. b) F ollowing the decision to initiate a global voluntary recall (pharmacy/retail level) by the Ultimate Holding Company of ranitidine products including Zinetac in India , the Parent Company initiated a comprehensive strategic review of the impact of this recall on all related assets in India including the manufacturing site at Vemgal. After considering all the strategic options available, the Parent Company decided to proceed with the sale of the site and had classified the corresponding assets as held for sale for the previous year ended March 31, 2021. During the previous year the Parent Company entered into a binding agreement for the sale of these assets subject to necessary regulatory approvals. Consequently, the Parent Company had recognized an impairment of ` 249,45.00 lakhs to reflect the estimated realizable value of the assets and reversal of associated costs ` 19,22.00 lakhs and reversal of cost to sell of ` 21,23.00 lakhs. The sale of the site has been concluded in the current year after all necessary approvals in December 2021. c) Post-transaction closing adjustments consequent to disposal of Asset held for sale at Vemgal. d) Restructuring cost of manufacturing and commercial organisation. Note 40 : Employee benefit obligations The Group obtained actuarial reports as required by IND AS 19 (Employee Benefits) based on which disclosures have been made in the financial statement for the year ended March 31, 2022. The disclosures as required by the IND AS 19 are as below. (i) Defined Contribution Plan The Group’s defined contribution plans are superannuation and employees’ pension scheme (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The obligation of the Group is limited to the amount contributed and it has no further contractual or constructive obligation. ( ` in lakhs ) Charge to the Statement of Profit and Loss based on contributions: Year ended March 31, 2022 Year ended March 31, 2021 Superannuation 2,54.18 3,26.02 National Pension Scheme 2,10.70 1,94.63 Employees' pension scheme 5,47.56 5,72.71 (ii) Defined Benefit Plan Gratuity The Group makes annual contributions to an income tax approved irrevocable trust gratuity fund to finance the plan liability, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under: i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service. ii) On death in service: As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period. Post - Retirement medical benefit The Group earmarks liability towards unfunded Post - Retirement medical benefit and provides for payment to vested employees. The benefits under the plan are in form of a medical benefit paid to employees post their employment with the Group. Provident Fund The liability of the Group on the exempt Provident Fund managed by the trustees is restricted to the interest shortfall if any. Leave Encashment and compensated absences The scheme is a non-contributory defined benefit arrangement providing benefits expressed in terms of a multiple of final monthly salary. The liability for leave encashment and compensated absences as at year end is ` 40,91.13 lakhs. (March 31, 2021: ` 39,05.92 lakhs).