Page 321 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORTS
STATEMENTS
REPORT
Consolidated

(iii) Net employee benefit cost for the year ` in crore
Year ended March 31, 2022 Year ended March 31, 2021
Particulars
Funded Unfunded Funded Unfunded
Current service cost 49.11 5.52 48.45 5.79
Past service cost 0.04 11.54 15.35 -
Administrative expenses 11.90 - 10.56 -
Interest on defined benefit obligation (net) 28.06 13.14 36.87 12.90
Components of defined benefits costs recognised in 89.11 30.20 111.23 18.69
Statement of Consolidated Profit and Loss
Remeasurements of the net defined benefit liability/(asset)
Actuarial (gain) / loss arising from:
- Changes in financial assumptions (344.06) (15.94) 420.46 (5.64)
- Changes in demographic assumptions (14.44) 0.13 (17.03) 0.74
- Experience adjustments 51.13 (8.78) (34.03) (3.30)
Return on plan assets less interest on plan assets (62.27) - (524.32) -
Components of defined benefits (gain)/costs recognised in (369.64) (24.59) (154.92) (8.20)
Other Comprehensive Income
Net benefit (gain)/expense (280.53) 5.61 (43.69) 10.49

(iv) Categories of the fair value of total plan assets: ` in crore
As at As at
Particulars
March 31, 2022 March 31, 2021
Government Securities/Corporate Bonds (Quoted) 2,503.18 2,530.51
Government Securities/Corporate Bonds (Unquoted) 537.15 561.17
Equity Instruments (Quoted) 341.36 358.23
Equity Instruments (Unquoted) 763.47 800.61
Insurer Managed/Hedged Funds 115.88 107.60
Others (Quoted) 12.75 33.58
Others (Unquoted) 85.75 94.35
Total 4,359.54 4,486.05

Each year an Asset-Liability-Matching study is performed in which the consequences of the strategic investment policies are analysed in
terms of risk-and-return profiles. Investment and contribution policies are integrated within this study.

(v) Risk Exposure :
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which are detailed below :
Investment risk: If future investment returns on assets are lower than assumed in valuation, the scheme's assets will be lower,
and the funding level higher than expected.
Changes in bond yields: A decrease in yields will increase plan liabilities, although this will be partially offset by an increase in the
value of the plans' bond holdings.
Longevity risk: If improvements in life expectancy are greater than assumed, the cost of benefits will increase because
pensions are paid for longer than expected. This will mean that the funding level will be higher than
expected.
Inflation risk: If inflation is greater than assumed, the cost of benefits will increase as pension increases and deferred
revaluations are linked to inflation.

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