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Atul Ltd | Annual Report 2017-18
Note 29.6 Employee benefit obligations
(continued)
The net liability disclosed above relates to following funded and unfunded plans:
(
`
cr)
Particulars
As at
March 31, 2018
As at
March 31, 2017
Present value of funded obligations
46.50
48.09
Fair value of plan assets
(46.49)
(48.00)
Deficit of Gratuity plan
0.01
0.09
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% (3.46%)
(3.92%)
3.78% 4.31%
Attrition rate
1.00% 1.00% (0.11%)
(0.06%)
0.12% 0.06%
Rate of return on plan assets
1.00% 1.00% (3.46%)
(3.92%)
3.78% 4.31%
Salary escalation rate
1.00% 1.00% 3.74% 4.27% (3.49%)
(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 Consolidated Balance Sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the
prior year.
Major category 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
2.54% –
1.27
1.27
2.67%
Debt instruments
Corporate bonds
0.98
– 0.98
2.11% 1.22
– 1.22
2.57%
Investment funds
Insurance fund
44.04
0.11 44.15 94.97% 44.71
0.13 44.84 94.42%
Others
–
0.02 0.02
0.04% –
–
–
–
Special deposit scheme
–
0.16 0.16
0.34% –
0.16
0.16
0.34%
45.02
1.47 46.49
100% 45.93
1.56 47.49
100%
Notes
to the Consolidated Financial Statements