GSK_Annual_Report_2021

Notes to the Standalone Financial Statements for the year ended March 31, 2021 (contd.) Financial Statements GlaxoSmithKline Pharmaceuticals Limited 124 Note 39 : Employee benefit obligations The company 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, 2021. The disclosures as required by the IND AS 19 are as below. (i) Defined Contribution Plan The Company’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 Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. ( ` in lakhs) Year ended March 31, 2021 Year ended March 31, 2020 Charge to the Statement of Profit and Loss based on contributions: Superannuation 5,20.65 5,89.46 Employees' pension scheme 5,72.71 6,04.33 (ii) Defined Benefit Plan Gratuity The Company 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 Company 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 Company. Provident Fund The liability of the Company 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 ` 39,05.92 lakhs. (March 31, 2020: ` 35,61.27 lakhs). Based on the actuarial valuations obtained, the following table sets out the status of the gratuity plan, post retirement medical benefits and provident fund and the amounts recognised in the Company’s Standalone Financial Statements as at balance sheet date: