MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

275 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Rupees crores Particulars Funded Plan Unfunded Plans Gratuity Post retirement medical Post retirement housing allowance 2023 2022 2023 2022 2023 2022 v Net defined benefit obligation Defined benefit obligation................................................................... 933.58 910.20 47.93 44.66 112.15 117.11 Fair value of plan assets...................................................................... 929.95 907.24 — — — — Surplus/(Deficit).......................................................................................... (3.63) (2.96) (47.93) (44.66) (112.15) (117.11) Current portion of the above........................................................... — — (2.59) (2.23) (8.85) (8.85) Non current portion of the above................................................. (3.63) (2.96) (45.34) (42.43) (103.30) (108.26) Rupees crores Particulars 2023 2022 Actuarial Assumptions and Sensitivity vi Actuarial assumptions Discount rate........................................................................................................................................................................................................................ 7.45% 6.95% Attrition rate......................................................................................................................................................................................................................... 12.50% 12.50% Cost 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......................................................................................................................................... (72.60) (73.05) One percentage point decrease in discount rate....................................................................................................................................... 83.63 84.48 One percentage point increase in Salary growth rate............................................................................................................................ 66.62 66.49 One percentage point decrease in Salary growth rate.......................................................................................................................... (59.48) (59.07) One percentage point increase in attrition rate.......................................................................................................................................... (5.09) (5.50) One percentage point decrease in attrition rate........................................................................................................................................ 5.66 6.13 One percentage point increase in medical inflation rate...................................................................................................................... 5.03 4.85 One percentage point decrease in medical inflation rate.................................................................................................................... (4.36) (4.18) viii Maturity profile of defined benefit obligation Upto 1 year............................................................................................................................................................................................................................ 169.57 164.91 1 to 5 years........................................................................................................................................................................................................................... 483.19 444.86 6 to 9 years........................................................................................................................................................................................................................... 401.83 381.82 10 years and above......................................................................................................................................................................................................... 1,174.24 1,101.64 The estimate of future salary increases considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. 35. Employee Benefits (contd.) A. Details of defined benefit plans as per actuarial valuation are as below: (contd.)