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

361 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Rupees crores Particulars 2023 2022 7 Maturity profile of defined benefit obligation Time periods Upto 1 year....................................................................................................................................................................................................................................... 232.81 224.11 1 - 5 years......................................................................................................................................................................................................................................... 852.17 753.09 6 - 9 years......................................................................................................................................................................................................................................... 576.12 556.62 10 years and above.................................................................................................................................................................................................................... 1,396.59 1,323.69 Trust-managed Provident fund Rupees crores Particulars 2023 2022 I Net defined benefit obligation Defined benefit obligation.................................................................................................................................................................................................... 3,355.68 3,004.62 Fair value of plan assets....................................................................................................................................................................................................... 3,190.06 3,004.62 Surplus/(Deficit)........................................................................................................................................................................................................................... (165.62) — II Actuarial assumptions Discount rate................................................................................................................................................................................................................................. 7.45% 6.95% Average remaining tenure of investment portfolio (years).......................................................................................................................... 5.35 4.63 Guaranteed rate of return.................................................................................................................................................................................................... 8.15% 8.10% The Company has recognised an obligation of Rs. 165.62 crores (2022: Nil) on account of interest rate guarantee through OCI. The plan assets have been primarily invested in government securities and corporate bonds. Group’s contribution (in respect of companies where applicable) for Provident Fund and Superannuation Fund aggregating Rs. 441.01 crores (2022: Rs. 394.33 crores) has been recognised in the Profit or Loss under the head ‘Employee Benefits Expense’. 35. Capital management The Group’s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and/or preference and/or convertible and/or combination of short term /long term debt as may be appropriate. The Group determines the amount of capital required on the basis of its product, capital expenditure, operations and strategic investment plans. The capital structure is monitored on the basis of equity, net debt and maturity profile of overall debt portfolio of the Group. The retail loan finance business of the companies in financial service business is subject to the capital adequacy requirements of the Reserve Bank of India (RBI) and National Housing Bank (NHB). Under capital adequacy guidelines, these companies are required to maintain a capital adequacy ratio consisting of Tier I and Tier II Capital. The total of Tier II Capital at any point of time, shall not exceed 100 percent of Tier I Capital. The Group companies in the financial services business have complied with all regulatory requirements related to regulatory capital and capital adequacy ratios as prescribed by RBI and NHB. Net Debt and Equity other than financial services segment is given in the table below: Rupees crores Particulars 2023 2022 Total Equity .............................................................................................................................................................................................................................................. 50,346.37 41,993.81 Net Debt Short term debt (including current portion of long term debt).............................................................................................................. 4,127.05 3,606.15 Long term debt........................................................................................................................................................................................................................... 3,450.59 9,189.75 Gross Debt .......................................................................................................................................................................................................................... 7,577.64 12,795.90 Less: Current investments................................................................................................................................................................................................................ 11,247.44 8,840.43 Cash and Bank Balances....................................................................................................................................................................................................... 7,312.77 6,400.57 Net Debt .............................................................................................................................................................................................................................. (10,982.57) (2,445.10) Total Capital deployed .................................................................................................................................................................................................................... 39,363.80 39,548.71 34. Employee Benefits (contd.)