Heritage Foods Limited | 31st Annual Report 2022-23

20. Provisions As at 31 March 2023 31 March 2022 Non-current Compensated absences 178.69 163.75 178.69 163.75 Current Compensated absences 86.99 79.91 86.99 79.91 (a) Gratuity The Company provides its employees with benefi ts under a defi ned benefi t plan, referred to as the “Gratuity Plan”. The Gratuity Plan entitles an employee, who has rendered at least fi ve years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/ exit in accordance with the Payment of Gratuity Act, 1972. The Company maintains its investments with Life Insurance Corporation of India, to fund its gratuity plan. (i) Change in projected benefit obligation As at 31 March 2023 31 March 2022 Projected benefit obligation at the beginning of the year 150.23 136.58 Service cost 18.61 16.52 Interest cost 8.95 7.73 Actuarial loss - experience 9.24 3.40 Actuarial gain - fi nancial assumptions (6.51) (3.01) Benefi ts paid (16.28) (10.98) Projected benefit obligation at the end of the year 164.24 150.23 (ii) Change in fair value of plan assets As at 31 March 2023 31 March 2022 Fair value of plan assets at the beginning of the year 155.76 134.52 Interest income 9.97 8.31 Contribution made 21.36 23.80 Return on plan assets greater / (lesser) than discount rate (1.36) 0.10 Benefi ts paid (16.28) (10.98) Fair value of plan assets at the end of the year 169.45 155.76 (iii) Reconciliation of present value of projected benefit obligation and fair value of plan assets As at 31 March 2023 31 March 2022 Present value of projected benefi t obligation 164.24 150.23 Funded status of plan assets 169.45 155.76 Net liability / (asset) recognised in the balance sheet (5.21) (5.53) Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Heritage Foods Limited | 31st Annual report 2022-23 220

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