Page 246 - Tata_Chemicals_yearly-reports-2017-18

Impact on defined benefit obligation due to change in assumptions as at March, 2017
` in crore
Assumptions TCL Rallis USA UK
Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Discount rate
0.25% change - - - - - - (119.93) 127.83
0.5% change (13.99) 15.72 - - (116.96) 136.70 - -
1% change - - (3.37) 3.87 - - - -
Compensation rate
0.5% change 3.11 (2.94) - - 33.43 (34.48) - -
1% change - - 2.30 (2.59) - - - -
Pension rate
1% change 3.83 (3.30) - - - - # #
Healthcare costs
1% change 19.58 (15.27) - - 2.15 (2.27) - -
# Not material
The sensitivity analysis above has been determined based on reasonably possible changes of the respective key assumptions occurring at the
end of the reporting period, while holding all other assumptions constant.
(viii) Maturity profile of the defined benefit obligation as at 31 March, 2018 is as follows:
` in crore
Particulars India US UK
Within the next 12 months (next annual reporting period) 21.97 88.12 105.26
Later than 1 year and not later than 5 years 67.04 386.04 445.75
6 years and above 700.94 535.46 617.23
Weighted average duration of the payments (in no. of years) 7-20 years 14-15 years 16-17 years

Maturity profile of the defined benefit obligation as at 31 March, 2017 is as follows:
` in crore
Particulars India US UK
Within the next 12 months (next annual reporting period) 19.30 81.01 93.48
Later than 1 year and not later than 5 years 70.47 371.60 397.47
6 years and above 810.81 548.17 554.24
Weighted average duration of the payments (in no. of years) 7-20 years 14-15 years 16-17 years

(C) Provident Fund
The Company and its domestic subsidiaries operate Provident Fund Schemes and the contributions are made to the recognised funds
maintained. The Company and its domestic subbsidiaries are required to offer a defined benefit interest rate guarantee on provident fund
balances of employees. The interest rate guarantee is payable to the employees for the year when the exempt fund declares a return on
provident fund investments which is less than the rate declared by the Regional Provident Fund Commissioner (‘RPFC’) on the provident fund
corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial
Society of India and based on the below provided assumptions there is no shortfall as on 31 March, 2018.

The details of fund and plan assets position are given below:
` in crore
Particulars As at
31 March, 2018
Plan assets at the end of the year 436.44
Present value of funded obligation 433.10
Amount recognised in the Balance Sheet -
Assumptions used in determining present value of obligation of interest rate guarantee under a deterministic approach:
Guaranteed rate of return 8.55% - 8.65%
Discount rate for remaining term to maturity of investments 7.65% - 7.78%
Discount rate 7.75%
Expected rate of return on investments 7.99% - 8.38%

244 Annual Report 2017-18