MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

337 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 34. Employee Benefits (contd.) Rupees crores Particulars Funded Plan Unfunded Plans Gratuity Gratuity* Post retirement medical benefits Post retirement housing allowance 2022 2021 2022 2021 2022 2021 2022 2021 4 Changes in fair value of plan assets Opening fair value of plan assets. ...................................... 1,161.84 1,082.77 — — — — — — Interest income....................... 60.01 58.98 — — — — — — Return on plan assets excluding interest income. .... 8.78 13.27 — — — — — — Contributions by employer..... 109.92 114.32 — — 1.65 1.52 7.96 6.13 Benefits paid........................... (118.74) (98.18) — — (1.65) (1.52) (7.96) (6.13) Disposal / deconsolidation of subsidiaries.............................. — (7.08) — — — — — — Foreign exchange translation difference................................ (6.10) (2.24) — — — — — — Closing fair value of plan assets. ...................................... 1,215.71 1,161.84 — — — — — — 5 Net defined benefit obligation Defined benefit obligation.... 1,300.74 1,240.08 249.67 312.11 46.54 52.46 117.11 88.17 Fair value of plan assets ....... 1,215.71 1,161.84 — — — — — — Surplus/(Deficit). ..................... (85.03) (78.24) (249.67) (312.11) (46.54) (52.46) (117.11) (88.17) Current portion of the above....................................... (10.71) (8.42) (18.62) (26.79) (2.24) (1.90) (8.85) (7.37) Non current portion of the above....................................... (74.32) (69.82) (231.05) (285.32) (44.30) (50.56) (108.26) (80.80) Rupees crores Assumptions 2022 2021 6 Actuarial Assumptions and sensitivity a Actuarial assumptions Discount rate (%). ........................................................................................................................................ 1.10 - 7.30 0.45 - 6.91 Attrition rate (%). ........................................................................................................................................ 1.80 - 46.35 1.54 -37 Cost inflation (%). ........................................................................................................................................ 7.00 - 9.00 7.00 - 9.00 Cost inflation includes an estimate of medical inflation and future salary increases taking in to account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. b Quantitative sensitivity analysis for impact of significant assumptions on defined benefit obligation are as below: Assumptions One percentage point increase in discount rate. ...................................................................................... (176.67) (168.54) One percentage point decrease in discount rate ..................................................................................... 178.33 177.82 One percentage point increase in salary growth rate.............................................................................. 145.70 142.37 One percentage point decrease in salary growth rate............................................................................. (139.26) (128.81) One percentage point increase in attrition rate. ...................................................................................... (36.57) (37.80) One percentage point decrease in attrition rate. ..................................................................................... 37.73 38.27 One percentage point increase in medical inflation rate . ...................................................................... 5.99 7.75 One percentage point decrease in medical inflation rate . ..................................................................... (5.05) (6.46)