Page 289 - Index

Mission-Critical Decisions, Made with Confidence.
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Particulars Year ended
December 31, 2024
Year ended
December 31, 2023
Investment with insurer 100% 100%
The overall expected rate of return on assets is determined based on the market prices prevailing on that date,
applicable to the period over which the obligation is to be settled.
The principal assumptions used in determining gratuity for the Company’s plans is as below:
Particulars 266
Salary escalation rate J lakh
Effect on DBO due to 0.5% increase in salary escalation rate 198
Effect on DBO due to 0.5% decrease in salary escalation rate (199)
Annual Report 2024
287
Financial Statements
Year ended
December 31, 2024
Year ended
December 31, 2023
Discount rate 6.70% 7.20%
Rate of return on plan assets Mortality rate 7.00%
Indian Assured Lives Mortality
(2006-08) Ult.
7.00%
Indian Assured Lives Mortality
(2006-08) Ult.
Expected employee turnover
Service years Rates Rates
Service < 5 20.00% 20.00%
Service => 5 10.00% 10.00%
Increment 10% for First 4 years starting
2024 and 7% thereafter
10% for First 4 years starting
2023 and 7% thereafter
Expected employer's contribution next year (C lakh) 717 635
Broad category of plan assets as per percentage of total plan assets of the gratuity:
Particulars Year ended
December 31, 2024
Year ended
December 31, 2023
Government securities 81% 88%
Fixed deposits, debentures and bonds 9% 3%
Others 10% 9%
Total 100% 100%
The actuarial assumptions for the determination of defined benefit obligations are discount rate and salary escalation
rate. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, holding all other assumptions constant.
Discount rate J lakh
Effect on DBO due to 0.5% increase in discount rate (249)
Effect on DBO due to 0.5% decrease in discount rate