G-Sec Interest Rates Yield Chart (India) Actuarial Valuations: Defined Benefit Obligations 30th June 2023

Discount Rate for Actuarial Valuation of Employee Benefit

• As per Para 83 of IND AS 19/IAS 19 (Revised) & Para 78 of AS 15 (Revised), the rate used to discount post-employment benefit obligations (both funded and unfunded) should be determined by reference to market yields at the balance sheet date on government bonds

Discount rate Comparison Table as at 31st March 2018

Key Observations: 3 monthly reviews

• He short-term interest rates reduced in the range of 1o basis point to 30 basis points whereas long term interest rate reduced in the range of 5 basis point to 10 basis point due to various factor such as the RBI’s decision on the repo rate and declining inflation.

Entities could expect liabilities to increase by 2.5% because of interest rate increase (assuming a 10-year term of obligation and a 25 basis points increase in interest rates)