Amal Ltd 2019-20

Amal Ltd | Annual Report 2019-2020 ( ` lakhs ) Particulars As at March 31, 2020 As at March 31, 2019 Present value of funded obligations 7.75 6.60 Fair value of plan assets (17.79) (15.80) Deficit | (surplus) of gratuity plan (10.04) (9.20) Significant estimates: actuarial assumptions and sensitivity The significant actuarial assumptions were as follows: Particulars As at March 31, 2020 As at March 31, 2019 Discount rate 6.43% 7.48% Attrition rate 14.00% 11.87% Rate of return on plan assets 6.43% 7.48% Salary escalation rate 8.40% 8.04% Mortality rate Indian Assured Lives Mortality (2006-08) Ultimate Indian Assured Lives Mortality (2006-08) Ultimate Sensitivity analysis The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: Particulars Change in assumptions Impact on defined benefit obligation As at March 31, 2020 As at March 31, 2019 Increase in assumptions Decrease in assumptions As at March 31, 2020 As at March 31, 2019 As at March 31, 2020 As at March 31, 2019 Discount rate 1.00% 1.00% (2.62%) (3.01%) 2.96% 3.37% Attrition rate 1.00% 1.00% (0.79%) (0.49%) 0.84% 0.52% Salary escalation rate 1.00% 1.00% 2.87% 3.32% (2.60%) (3.02%) The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability recognised in the Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year. Note 26.5 Employee benefit obligations (continued) Notes to the Financial Statements