173 Note 29.6 Employee benefit obligations (continued) Sensitivity analysis The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: Particulars Change in assumptions Impact on defined benefit obligation Increase in assumptions Decrease in assumptions As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 Discount rate 1.00% 1.00% (3.19%) (3.76%) 3.47% 4.08% Attrition rate 1.00% 1.00% (0.54%) (0.89%) 0.58% 0.96% Rate of return on plan assets 1.00% 1.00% (3.19%) (3.76%) 3.47% 4.08% Salary escalation rate 1.00% 1.00% 3.36% 3.88% (3.15%) (3.65%) The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability recognised in the Standalone Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the previous year. Major categories of plan assets are as follows (` cr) Particulars As at March 31, 2023 As at March 31, 2022 Unquoted in % Unquoted in % Government of India assets 1.18 1.93% 1.18 1.93% Debt instruments Corporate bonds 1.28 2.10% 1.22 2.01% Investment funds Insurance funds 58.10 95.23% 53.09 86.81% Others 0.29 0.48% 5.50 8.99% Special deposit schemes 0.16 0.26% 0.16 0.26% 61.01 100% 61.15 100% Risk exposure Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: i) Asset volatility The plan liabilities are calculated using a discount rate set with reference to bond yields, if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with high grades and in government securities. These are subject to interest rate risk. The Company has a risk management strategy where the
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