Integrated Annual Report 2024-25 320 (d) Trust-managed Provident fund: Rupees crores Particulars 2025 2024 (i) Net defined benefit obligation Defined benefit obligation......................................................................................................................................................................................... 3,766.63 3,456.11 Fair value of plan assets............................................................................................................................................................................................ 3,688.36 3,456.11 Surplus / (Deficit)............................................................................................................................................................................................................. (78.27) — (ii) Actuarial assumptions Discount rate...................................................................................................................................................................................................................... 6.90% 7.20% Average remaining tenure of investment portfolio (years)............................................................................................................... 5.66 5.46 Guaranteed rate of returns...................................................................................................................................................................................... 8.25% 8.25% The Company has recognised an obligation of Rs. 78.27 crores (2024: Rs. Nil crores) on account of interest rate guarantee through OCI. The plan assets have been primarily invested in government securities and corporate bonds. The Company’s contribution to Provident fund and Superannuation fund aggregating Rs. 211.65 crores (2024: Rs. 208.72 crores) has been recognised in profit or loss under ‘Employee benefits expense’. The weighted average duration of the defined benefit obligation is 8.76 years (2024: 8.39 years). The expected contribution payable to the plan next year is Rs. 131.15 crores. 37. Employee Stock Option Plan The Company has setup Mahindra & Mahindra Employees Stock Option Trust (M&M ESOP Trust) and allotted certain ordinary shares which it holds for the benefit of the employees and issues them to the eligible employees as per the recommendations of the Nomination and Remuneration Committee (NRC). Mahindra and Mahindra Limited Employees Stock Option Scheme – 2010 (“2010 Scheme”): The Company has granted options at an exercise price of Rs. 5.00 which vests in 2 to 5 instalments ranging from 12 to 84 months from the date of grant. The exercise period of the options ranges from 1 year to 6 years from the date of vesting. Number of vested options exercisable is subject to a minimum of 50 or number of options vested, whichever is lower. Summary of stock options Particulars No. of stock options Weighted average exercise price (Rs.) Options outstanding on 1st April, 2024............................................................................................................................................... 52,55,862 4.89 Options granted during the year.............................................................................................................................................................. 4,58,479 5.00 Options forfeited / lapsed during the year....................................................................................................................................... 1,38,588 4.39 Options exercised during the year.......................................................................................................................................................... 15,37,589 4.74 Options outstanding on 31st March, 2025........................................................................................................................................ 40,38,164 4.97 Options vested but not exercised on 31st March, 2025.......................................................................................................... 14,52,537 4.92 36. Employee Benefits (contd.)
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