Company Overview Financial Statements Notice Statutory Reports 73 Rudolf Atul Chemicals Ltd | Annual Report 2023-24 Major category of plan assets are as follows: (` lakhs) Particulars As at March 31, 2024 As at March 31, 2023 Unquoted in % Unquoted in % Investment funds Insurance funds 70.22 73% 68.92 75% Others Bank balance 26.60 27% 22.77 25% Total 96.83 100% 91.69 100% Risk exposure Through its defined benefit plans, the Company is exposed to a number of risks; the most significant of which are detailed below: Interest rate risk A fall in the discount rate which is linked to the government securities rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark-to-market value of the assets depending on the duration of the asset. Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than the assumed level will increase the plan’s liability. Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan assets is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments. Concentration risk The plan is having a concentration risk as all the assets are investedwith the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow regulatory guidelines. Expected contributions to post-employment benefit plans for the year ending March 31, 2024, are ` nil lakhs. The weighted average duration of the defined benefit obligation is five years (2023-24: five years). The expected maturity analysis of gratuity is as follows: (` lakhs) Particulars Less than a year Between 1 - 2 years Between 2 - 5 years Over 5 years Total Defined benefit obligation (gratuity) As at March 31, 2024 16.95 8.16 21.34 64.33 110.78 As at March 31, 2023 35.16 4.59 12.63 47.67 100.05 b) Defined contribution plans The Company pays provident fund contributions to registered provident fund administered by the government at the rate of 12% of the basic salary as per regulations. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards a defined contribution plan is ` 21.53 lakhs (March 31, 2023: ` 18.92 lakhs).
RkJQdWJsaXNoZXIy MjA2MDI2