Atul Ltd 2017-18

135 Significant estimates: Actuarial assumptions and sensitivity The significant actuarial assumptions were as follows: Particulars As at March 31, 2018 As at March 31, 2017 Discount rate 7.68% 7.22% Attrition rate 9.70% 7.30% Rate of return on plan assets 7.68% 7.22% Salary escalation rate 8.27% and 6.00% 7.75% 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, 2018 As at March 31, 2017 As at March 31, 2018 As at March 31, 2017 As at March 31, 2018 As at March 31, 2017 Discount rate 1.00% 1.00% (3.39%) (3.92%) 3.70% 4.31% Attrition rate 1.00% 1.00% (0.09%) (0.06%) 0.10% 0.06% Rate of return on plan assets 1.00% 1.00% (3.39%) (3.92%) 3.70% 4.31% Salary escalation rate 1.00% 1.00% 3.67% 4.27% (3.43%) (3.96%) 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 Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year. Major categories of plan assets are as follows: ( ` cr) Particulars As at March 31, 2018 As at March 31, 2017 Quoted Unquoted Total in % Quoted Unquoted Total in % Government of India assets – 1.18 1.18 2.60% – 1.27 1.27 2.69% Debt instruments Corporate bonds 0.99 – 0.99 2.18% 1.22 – 1.22 2.59% Investment funds Insurance fund 43.07 – 43.07 94.83% 44.52 – 44.52 94.38% Others – 0.02 0.02 0.04% – – – – Special deposit scheme – 0.16 0.16 0.35% – 0.16 0.16 0.34% 44.06 1.36 45.42 100% 45.74 1.43 47.17 100% Notes to the Financial Statements Note 27.6 Employee benefit obligations (continued)