179 Significant estimates: Actuarial assumptions and sensitivity The significant actuarial assumptions were as follows: (` lakhs) Particulars As at March 31, 2024 As at March 31, 2023 Discount rate 7.19% 7.35% Attrition rate 14.00% 13.00% Rate of return on plan assets 7.19% 7.35% Salary escalation rate 10.36% 9.84% Mortality rate Indian assured lives mortality (2012-14) urban Indian assured lives mortality (2012-14) urban 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 Increase in assumptions Decrease in assumptions As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 Discount rate 1.00% 1.00% (5.86%) (5.83%) 6.57% 6.53% Attrition rate 1.00% 1.00% (2.10%) (1.71%) 2.26% 1.83% Salary escalation rate 1.00% 1.00% 6.31% 6.31% (5.72%) (5.76%) The above sensitivity analyses 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 Consolidated Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the previous year. Risk exposure Through its defined contribution plans, the Group is exposed to a number of risks, the most significant of which are detailed below: i) Interest rate risk A fall in the discount rate which is linked to the government securities rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark-to-market value of the assets depending on the duration of the asset. Note 28.5 Employee benefit obligations (continued)
RkJQdWJsaXNoZXIy MjA2MDI2