Page 222 - Kolte Patil AR 2019-20

Notes forming part of the Consolidated Financial Statements

xi. Sensitivity analysis: A quantitative sensitivity analysis for significant assumption is as shown below:
Effect on Defined Benefit Obligation on account (DBO) of 1% change in the assumed rates:

DBO Rates Types Discount Rate Salary Escalation Rate Withdrawal Rate
1% 1% 1% 1% 1%
Quarter/Year 1% Decrease
Increase Decrease Increase Decrease Increase
March 31, 2020 994 1,101 1,083 1008 1040 1048
March 31, 2019 944 1,018 1,004 956 975 982

The sensitivity results above determine their individual impact on Plan’s end of year defined benefit obligation. In reality, the plan is subject
to multiple external experience items which may move the defined Benefit Obligation in similar or opposite directions, while the Plan’s
sensitivity to such changes can vary over time.
xii. Employee benefit plans
The plans typically expose the company to the actuarial risks such as: investments risk, interest risks, longevity risk and salary risk.
The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount
Investment risk
rate which is determined by reference to market yields at the end of the reporting period on government bonds.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase
Interest risk
in the return on the plan’s debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
Longevity risk plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan’s liability.
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
Salary risk
As such, an increase in the salary of the plan participants will increase the plan’s liability.
No other post-retirement benefits are provided to these employees.

39. SEGMENT INFORMATION
Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment
performance focuses on the types of goods and services delivered or provided. The Company is engaged in development of real estate
property, operating in India, which in the context of Indian Accounting Standard 108 ‘Segment Information’ represents single reportable
business segment.

40. LEASES
Where the Group is Lessee:

The group has entered into operating lease arrangements for certain facilities and office premises. The leases are range over a period of 2
years to 5 years. Rental expense for operating leases included in the Statement of Profit and Loss for the year is ` 167 Lakhs [Previous Year –
` 552 Lakhs].

Where the Group is Lessor:
The Group has entered into operating lease arrangements for certain of its facilities. Rental income from operating leases included in the
Statement of Profit and Loss [under other income] for the year is ` 272 Lakhs [Previous Year - ` 252 Lakhs].

220 | Kolte-Patil Developers Limited