GSK_Annual_Report_2021

Notes to the Consolidated Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 203 (viii) Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below. Year ended March 31, 2021 Year ended March 31, 2020 Increase Decrease Increase Decrease Discount rate (0.5% movement) - Gratuity -4.26% 4.60% -4.34% 4.69% Future salary growth (0.5% movement) - Gratuity 3.96% -3.80% 4.14% -3.94% Discount rate (0.5% movement) - Post retirement medical benefit -5.66% 6.28% -5.60% 6.21% Medical inflation rate (1% movement) 12.25% -10.08% 12.61% -10.00% Life expectancy +/- 1 year 2.90% -2.98% 2.94% -3.01% The above sensitivity analysis have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When one variable is changed, it affects others. In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied. Expected contribution to post employment benefit plans for the year ended March 31, 2022 is ` 12,00.00 lakhs (March 31, 2021: ` 12,00.00 lakhs) The weighted average duration of defined benefit obligation is 8.85 years (March 31, 2020: 9.02 years) The expected maturity analysis of un-discounted Gratuity and Post employment medical benefits is as below: ( ` in lakhs) March 31, 2021 Less than a year Between 1-2 years Between 2-5 years Over 5 years Total Defined benefit obligations (Gratuity) 10,28.46 9,07.53 30,78.65 184,72.88 234,87.52 Post employment medical benefits 3,36.01 3,57.75 11,88.13 185,99.73 204,81.62 Total 13,64.47 12,65.28 42,66.78 370,72.61 439,69.14 ( ` in lakhs) March 31, 2020 Less than a year Between 1-2 years Between 2-5 years Over 5 years Total Defined benefit obligations (Gratuity) 9,28.45 6,98.05 28,59.92 175,31.75 220,18.17 Post employment medical benefits 3,29.50 3,49.91 11,48.39 177,09.96 195,37.76 Total 12,57.95 10,47.96 40,08.31 352,41.71 415,55.93