annual-report-FY2021

263 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 Rupees crores Funded Plan Unfunded Plans Gratuity Post retirement medical Post retirement housing allowance Particulars 2021 2020 2021 2020 2021 2020 iii Changes in the defined benefit obligation Opening defined benefit obligation......................... 791.00 805.80 34.12 45.82 83.50 65.19 Current service cost..................................................... 61.84 65.21 2.07 3.07 2.37 3.16 Past service cost........................................................... — — — — 1.02 12.52 Interest expense. ......................................................... 49.60 55.41 2.29 3.38 5.53 4.77 Remeasurements (gains)/ losses arising from changes in - – financial assumptions............................................... 31.85 (18.53) 3.21 2.43 3.66 4.13 – demographic assumptions....................................... — (17.07) — (7.40) — — – experience adjustments........................................... (31.45) (12.31) 10.67 (12.20) (1.78) (2.07) Benefits paid................................................................ (64.35) (87.51) (1.47) (0.98) (6.13) (4.20) Closing defined benefit obligation. .......................... 838.49 791.00 50.89 34.12 88.17 83.50 iv Changes in fair value of plan assets during the year Opening fair value of plan assets.............................. 767.29 659.45 — — — — Interest income............................................................ 50.72 47.43 — — — — Return on plan assets excluding interest income..... 3.04 4.86 — — — — Contribution by employer.......................................... 89.35 143.06 1.47 0.98 6.13 4.20 Benefits paid................................................................ (64.35) (87.51) (1.47) (0.98) (6.13) (4.20) Closing fair value of plan assets................................ 846.05 767.29 — — — — v Net defined benefit obligation Defined benefit obligation......................................... 838.49 791.00 50.89 34.12 88.17 83.50 Fair value of plan assets............................................. 846.05 767.29 — — — — Surplus/(Deficit). .......................................................... 7.56 (23.71) (50.89) (34.12) (88.17) (83.50) Current portion of the above.................................... — — (1.86) (1.35) (7.37) (5.70) Non current portion of the above............................. 7.56 (23.71) (49.03) (32.77) (80.80) (77.80) Particulars 2021 2020 Actuarial Assumptions and Sensitivity vi Actuarial assumptions Discount rate. .............................................................................................................................................. 6.30% 6.85% Attrition rate. .............................................................................................................................................. 10.00% 10.00% Costs inflation.............................................................................................................................................. 7 - 9% 7 - 9% vii Quantitative sensitivity analysis for impact of significant assumptions on defined benefit obligation are as below: One percentage point increase in discount rate...................................................................................... (68.27) (60.44) One percentage point decrease in discount rate..................................................................................... 78.67 69.27 One percentage point increase in Salary growth rate. ........................................................................... 62.70 56.51 One percentage point decrease in Salary growth rate. .......................................................................... (55.82) (50.52) One percentage point increase in attrition rate...................................................................................... (8.60) (6.01) 31. Employee Benefits (contd.) A. Details of defined benefit plans as per actuarial valuation are as below: (contd.)