Page 221 - Kolte Patil AR 2019-20

Notes forming part of the Consolidated Financial Statements

viii. Actual Contribution and benefit payments for the year
(H in Lakhs)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Actual benefit paid directly by the group (1) (8)
Actual contributions 32 109

ix. Principal Actuarial Assumptions for gratuity
(H in Lakhs)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Discount Rate 5.30 to 6.90% 6.90 to 7.80%
Expected Rate of Increase in compensation levels 5.00% to 9.00% 5.00% to 11.00%
Expected Rate of Return on Plan Assets 6.70% to 7.80% 7.20% to 7.80%
Expected Average Remaining working lives of employees (Years) 8.29 9.76
Mortality Rate IALM(2012-14) ult IALM(2012-14) ult
Withdrawal Rate 3% to 27% 3% to 40%

a. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that
of the liabilities.

b. Expected Rate of Return of Plan Assets: This is based on the expectation of the average long term rate of return expected on investments
of the Fund during the estimated term of obligations.
c. Salary Escalation Rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and
other relevant factors.
d. Withdrawal Rate: It is the expected employee turnover rate and should be based on the company’s past attrition experience and future
withdrawal expectations.
x. Disclosure related to indication of effect of the defined benefit plan on the entity’s future cash flows:
Expected benefit payments for the year ending:
(H in Lakhs)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
31-Mar-21 306 196
31-Mar-22 231 160
31-Mar-23 196 157
31-Mar-24 168 138
31-Mar-25 159 -
31 March 2025 to 31 March 2029 105 -
31 March 2026 to 31 March 2030 548 562

Weighted average duration of defined benefit obligation: 4.12 Years (Previous Year: 4.21 Years)

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