166 Annual Report 2023-24 Atul Ltd aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. All deviations from the range are corrected by rebalancing the portfolio. It intends to maintain the above investment mix in the coming years. ii) Changes in bond yields A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of other bond holdings. The Company actively monitors how the duration and the expected yield of the investments match the expected cash outflows arising from the employee benefit obligations. It has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment will not have a material impact on the overall level of assets. A large portion of assets consists of insurance funds; it also invests in corporate bonds and special deposit schemes. The plan asset mix is in compliance with the requirements of the respective local regulations. Expected contributions to post-employment benefit plans for the year ending March 31, 2025, are ` 4.42 cr. The weighted average duration of the defined benefit obligation is five years (2022-23: six years). The expected maturity analysis of gratuity is as follows: (` cr) Particulars Less than a year Between 1 - 2 years Between 2 - 5 years Over 5 years Total Defined benefit obligation (gratuity) As at March 31, 2024 15.98 9.06 25.82 34.14 85.00 As at March 31, 2023 11.51 8.32 30.71 32.21 82.75 Provident fund The Company has established an employee provident fund trust for employees based at Ankleshwar. It is administered by the Company to which both the employee and the employer make monthly contributions equal to 12% of the basic salary of the employee. The contribution of the Company to the provident fund for all employees is charged to the Standalone Statement of Profit and Loss. In case of any liability arising due to shortfall between the return from its investments and the administered interest rate, the same is required to be provided for by the Company. The actuary has provided an actuarial valuation and indicated that the interest shortfall liability is ` nil. The Company has contributed the following amounts towards the provident fund during the respective period ended: (` cr) Expenses recognised for the year ended on March 31, 2024 (included in Note 25) As at March 31, 2024 As at March 31, 2023 i) Defined benefit obligation 11.74 12.45 ii) Funds 12.24 12.48 Net assets | (liabilities) 0.50 0.03 iii) Charge to the Standalone Statement of Profit and Loss during the year 0.23 0.24 The assumptions used in determining the present value of obligation: Particulars 2023-24 2022-23 i) Mortality rate Indian assured lives mortality 2012-14 (Urban) Indian assured lives mortality 2012-14 (Urban) ii) Withdrawal rate 5% p.a. for all age groups 5% pa for all age groups iii) Rate of discount 7.17% 7.35% iv) Expected rate of interest 8.25% 8.88% v) Retirement age 58 & 60 years 60 years vi) Guaranteed rate of interest 8.25% 8.15% Note 29.6 Employee benefit obligations (continued)
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