Page 263 - Hitachi IR 2025

vi) The principal assumptions used in determining gratuity obligations are shown below:
For the year ended
March 31, 2025
For the year ended
March 31, 2024
Discount rate 6.50% 7.00%
Future salary increases 7.75% 7.75%
Employee turnover Age 20-24- 12% Age 20-24- 12%
Age 25-34 - 9% Age 25-34 - 9%
Age 35-44 - 7% Age 35-44 - 7%
Age 45-54 - 4% Age 45-54 - 4%
Thereafter 2% Thereafter 2%
Mortality rate Mortality
(2006-08) Ult.
Mortality
(2006-08) Ult.
vii) The following are expected payments from the defined benefit plan in future years:
All amount in Indian Rupees in Crores, except as stated otherwise
For the year ended
March 31, 2025
For the year ended
March 31, 2024
Within the next 12 months (next annual reporting period) 12.34 8.45
Between 1 and 5 years 37.28 39.05
Beyond 5 years 154.20 140.08
Total expected payments 203.82 187.58
viii) The following are expected contributions to the defined benefit plan in future years:
All amount in Indian Rupees in Crores, except as stated otherwise
For the year ended
March 31, 2025
For the year ended
March 31, 2024
Within the next 12 months (next annual reporting period) 29.29 19.72
ix) The average duration of the defined benefit plan obligation at the end of the reporting period is 8 years
(March 31, 2024: 8 years)
A quantitative sensitivity analysis for significant assumption is as shown below:
All amount in Indian Rupees in Crores, except as stated otherwise
Assumptions As at March 31, 2025 As at March 31, 2024
Discount rate Future salary
increases
Discount rate Future salary
increases
Sensitivity analysis
1% increase (7.81) 8.77 (6.69) 7.53
1% decrease 8.96 (7.80) 7.66 (6.71)
Impact on defined benefit obligation
The sensitivity analysis above have been determined based on a method that extrapolates the impact on
defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period. The sensitivity analysis are based on a change in a significant assumption, keeping all other
assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined
benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.
33 FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised in respect of each class of financial asset, financial
liabilities and equity instrument are disclosed in the financial statements.
Integrated Annual Report 2024-25
261