Investor Presentaiton
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2023
vi)
Actuarial Assumptions
a.
Financial Assumptions
The principal financial assumptions used in the valuation are shown in the table below:
Particulars
Discount rate (per annum)
Salary growth rate (per annum)
142
b.
Demographic Assumptions
As at
31.03.2023
7.50%
5.50%
As at
31.03.2022
7.30%
5.50%
Particulars
Mortality Rate % of IALM 2012-14 (% of IALM 2006-08)
Withdrawal rates, based on age: (per annum)
Up to 30 years
31 - 44 years
Above 44 years
vii) Amount, Timing and Uncertainty of Future Cash Flows
a.
Sensitivity Analysis:
As at
As at
31.03.2023
31.03.2022
100%
100%
3.00%
3.00%
2.00%
2.00%
1.00%
1.00%
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and
mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at
the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:
Particulars
(Crores)
As at
Defined Benefit Obligation (Base)
31.03.2023
484.47
As at
31.03.2022
450.87
31.03.2023
31.03.2022
Particulars
Decrease
Increase
Decrease
Increase
Discount Rate (-/+ 1%)
530.74
444.60
495.50
412.48
(% change compared to base due to sensitivity)
Salary Growth Rate (-/+ 1%)
9.60%
-8.20%
9.90%
-8.50%
443.48
531.27
411.48
495.92
(% change compared to base due to sensitivity)
-8.50%
9.70%
-8.70%
10.00%
Attrition Rate (-/+ 50%)
481.65
487.04
448.63
452.90
(% change compared to base due to sensitivity)
-0.60%
0.50%
-0.50%
0.50%
Mortality Rate (-/+ 10%)
483.67
485.27
450.12
451.61
(% change compared to base due to sensitivity)
-0.20%
0.20%
-0.20%
0.20%
Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.View entire presentation