MAHINDRA & MAHINDRA LTD. Consolidated Accounts 401 Rupees crores Particulars 2025 2024 (viii) Maturity profile of defined benefit obligation Time periods Upto 1 year................................................................................................................................................................................................................................ 275.12 251.79 1 - 5 years.................................................................................................................................................................................................................................. 786.65 786.69 6 - 9 years.................................................................................................................................................................................................................................. 668.87 590.41 10 years and above............................................................................................................................................................................................................. 1,441.74 1,337.79 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. The weighted average duration of the defined benefit obligation is 2.73 to 18.85 years (2024: 2.68 to 18.91 years) The Group expects to contribute Rs. 139.80 crores to the Gratuity fund for the year ending 31st March, 2026 (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 return.................................................................................................................................................................................................... 8.25% 8.25% Notes (i) The Company has recognised an obligation of Rs.78.27 crores (2024: Nil) on account of interest rate guarantee through OCI. (ii) The plan assets have been primarily invested in government securities and corporate bonds. (iii) The weighted average duration of the defined benefit obligation is 8.76 years (2024: 8.39 years). (iv) The Company expects to contribute Rs. 131.15 crores to the Provident fund for the year ending 31st March, 2026. (e) Group’s contribution (in respect of companies where applicable) for Provident Fund and Superannuation Fund aggregating Rs. 508.46 crores (2024 : Rs. 496.02 crores) has been recognised in the Profit or Loss under ‘Employee Benefits Expense’. 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 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 (Continued)
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