Page 322 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

(vi) (a) Assumptions used to determine net periodic benefit costs:
India USA Plans UK Plans
Funded Unfunded Funded Unfunded Funded
Discount rate 6.85 % to 6.85 % to
As at March 31, 2022 3.84% 3.81% p.a. 2.80% p.a.
7.23% p.a. 7.23% p.a.
6.06 % to 6.06 % to 3.37% 3.26% p.a. 2.10% p.a.
As at March 31, 2021
6.85% p.a. 6.85% p.a.
Increase in compensation cost 7.50% - 7.50% - 5.30% to
As at March 31, 2022 NA NA
8.00% p.a. 8.00% p.a. 8.40% p.a.
7.50% - 7.50% - 5.30% to NA NA
As at March 31, 2021
8.00% p.a. 8.00% p.a. 8.40% p.a.
Healthcare cost increase rate 8.00%-
As at March 31, 2022 NA NA NA NA
10.00% p.a.
NA 8.00%- NA NA NA
As at March 31, 2021
10.00% p.a.
Pension increase rate As at March 31, 2022 NA 6.00% p.a. NA NA 3.35% p.a.
As at March 31, 2021 NA 6.00% p.a. NA NA 3.10% p.a.
(i) Discount rate for the domestic plans is based on the prevailing market yields of Indian Government securities as at the Balance
Sheet date for the estimated term of the obligations. Discount rate for USA Subsidiaries is based on high quality bonds and for UK
subsidiaries it is based on corporate bonds.
(ii) The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other
relevant factors.
(iii) The details of post-retirement and other benefit plans for its employees given above are certified by the actuaries and relied upon by
the Auditors.

(vi) (b) Average longevity at retirement age for current beneficiaries of the plan (years)
India UK USA India UK USA
As at As at As at As at As at As at
March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2021 March 31, 2021 March 31, 2021
Males 12 to 22 years 21 to 24 years 22 to 24 years 12 to 22 years 21 to 24 years 23 to 24 years
Females 12 to 25 years 23 to 27 years 25 to 26 years 12 to 25 years 24 to 27 years 25 to 26 years

(vii) Sensitivity Analysis
Impact on defined benefit obligation due to change in assumptions as at March 31, 2022 ` in crore
As at March 31, 2022
TCL Rallis USA UK
Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Discount Rate
0.25% change - - - - - - (112.52) 118.81
0.5% change (11.10) 12.22 - - (126.05) 147.32 - -
1% change - - (5.39) 4.69 - - - -
Compensation rate
0.5% change 2.87 (2.72) - - 26.57 (32.57) - -
1% change - - 3.32 (2.93) - - - -
Pension rate
1% change 4.11 (3.61) - - - - - -
Healthcare costs
1% change 12.80 (10.37) - - - - - -

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