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

360 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 Rupees crores Particulars Funded Plan Unfunded Plans Gratuity Gratuity* Post retirement medical benefits Post retirement housing allowance 2023 2022 2023 2022 2023 2022 2023 2022 4 Changes in fair value of plan assets Opening fair value of plan assets .......................................................... 1,215.71 1,161.84 — — — — — — Interest income.................................... 71.66 60.01 — — — — — — Return on plan assets excluding interest income............. (7.63) 8.78 — — — — — — Contributions by employer............ 118.43 109.92 — — 0.93 1.65 8.85 7.96 Benefits paid.......................................... (121.41) (118.74) — — (0.93) (1.65) (8.85) (7.96) Business combination...................... 13.25 — — — — — — — Disposal of subsidiaries.................. (16.06) — — — — — — — Foreign exchange translation difference.................................................. 7.58 (6.10) — — — — — — Closing fair value of plan assets .......................................................... 1,281.53 1,215.71 — — — — — — 5 Net defined benefit obligation Defined benefit obligation............ 1,322.77 1,300.74 287.59 249.67 49.23 46.54 112.15 117.11 Fair value of plan assets ............. 1,281.53 1,215.71 — — — — — — Surplus/(Deficit)................................... (41.24) (85.03) (287.59) (249.67) (49.23) (46.54) (112.15) (117.11) Current portion of the above.... (8.47) (10.71) (10.46) (18.62) (2.61) (2.24) (8.85) (8.85) Non current portion of the above........................................................... (32.77) (74.32) (277.13) (231.05) (46.62) (44.30) (103.30) (108.26) Rupees crores Particulars 2023 2022 6 Actuarial Assumptions and sensitivity a Actuarial assumptions Discount rate (%)................................................................................................................................................................................................................. 0.63 - 7.50 1.10 - 7.30 Attrition rate (%).................................................................................................................................................................................................................. 1.52 - 60.68 1.80 - 46.35 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 .......................................................................................................................................... (170.43) (176.67) One percentage point decrease in discount rate ........................................................................................................................................ 190.82 178.33 One percentage point increase in salary growth rate............................................................................................................................... 151.67 145.70 One percentage point decrease in salary growth rate............................................................................................................................. (139.02) (139.26) One percentage point increase in attrition rate............................................................................................................................................ (57.96) (36.57) One percentage point decrease in attrition rate........................................................................................................................................... 58.95 37.73 One percentage point increase in medical inflation rate ....................................................................................................................... 5.73 5.99 One percentage point decrease in medical inflation rate ..................................................................................................................... (4.86) (5.05) 34. Employee Benefits (contd.)