Employee benefits

12 Months Ended

Mar. 31, 2021

Disclosure Of Employee Benefits [Abstract]

Disclosure of employee benefits [text block]

17. Employee benefits

	March 31, 2021		March 31, 2020
Gratuity payable		136,538		126,080
Compensated absences		55,866		51,319
		192,404		177,399

Gratuity cost

The components of gratuity costs recognized in the consolidated income statement for the years ending March 31, 2021, March 31, 2020 and March 31, 2019 consist of the following:

	March 31, 2021			March 31, 2020			March 31, 2019
Service cost		29,854			28,929			25,936
Interest cost		8,753			10,106			9,606
Interest income		(1,705	)		(1,781	)		(2,381	)
		36,902			37,254			33,161

Details of employee benefit obligation and plan asset are as follows:

Long term rate of compensation increase	March 31, 2021			March 31, 2020
Long term rate of compensation increase		177,098			156,413
Long term rate of compensation increase		(40,651	)		(30,474	)
Long term rate of compensation increase		136,447			125,939

The following table set out the status of the gratuity plan:

Change in defined benefit obligation	March 31, 2021			March 31, 2020			March 31, 2019
Projected benefit obligation at the beginning of the year		156,412			145,108			131,687
Service cost		29,854			28,929			25,936
Interest cost		8,753			10,106			9,606
Remeasurements - Actuarial (gain) / loss		(7,178	)		(12,955	)		(5,267	)
Benefits paid		(10,743	)		(14,776	)		(16,854	)
Projected benefit obligation at the end of the year		177,098			156,412			145,108

Change in plan assets	March 31, 2021			March 31, 2020			March 31, 2019
Fair value of plan assets at the beginning of the year		30,474			25,498			32,567
Interest income		1,705			1781			2,381
Remeasurements – return on plan assets excluding amounts included in interest income		21,214			(2,138	)		(2,596	)
Employer contributions		(10,743	)		20,109			10,000
Benefits paid		(1,999	)		(14,776	)		(16,854	)
Fair value of plan assets at the end of the year		40,651			30,474			25,498
Actual return on plan assets		(293	)		(300	)		(75	)

Actuarial assumptions at end of the year:

The principal actuarial assumptions as on March 31, 2021, 2020 and 2019 were as follows:

	March 31, 2021	March 31, 2020	March 31, 2019
Discount rate	5.70% p.a..	5.60% p.a.	6.95% P.a
Long-term rate of compensation increase	5.00% p.a.	5.00% p.a.	7.00% P.a
Expected long term rate of return on plan assets	0% for the first year and 5% thereafter	0% for the first year and 5% thereafter	7.00% P.a
Average future working life time	4.32 years	4.37 years	4.37 years

Discount rate: The discount rate is based on prevailing market yields of Indian Government securities as at the end of the year for the estimated term of the obligations.

Long term rate of compensation increase: The estimates of future salary increase considered take into account inflation, seniority, promotion and other factors.

Expected long term rate of return on plan assets: This is based on the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases considered take into account the inflation, seniority, promotion and other relevant factors.

Assumptions regarding future mortality are based on published statistics and mortality tables.

The Group assesses these assumptions with the projected long-term plans of growth and prevalent industry standards.

Contributions: The Group expects to contribute ₹ 65,500 to its gratuity fund during the year ending March 31, 2021.

The expected benefit payments to be made in the next few years are as under:

Year	March 31, 2021		March 31, 2020
1 Year		33,483		29,441
2 to 5 years		105,131		90,764
6 to 10 years		65,222		58,273
More than 10 years		32,479		30,280

Plan assets: The Gratuity plan’s weighted-average asset allocation on March 31, 2021 and March 31, 2021, by asset category is as follows:

	March 31, 2021			March 31, 2020
Funds managed by insurers		100	%		100	%

Remeasurements of the net defined benefit liability recognized in other comprehensive income

Amount recognized in other comprehensive income for the years ending March 31, 2021, 2020 and 2019 are as follows:

	March 31, 2021			March 31, 2020			March 31, 2019
Remeasurements of the net defined benefit liability
Actuarial (gain)/loss
-   Change in demographic assumptions		-			(10	)		-
-   change in financial assumptions		(9,342	)		(12,015	)		2,358
-   experience variance		2,165			(929	)		(7,625	)
-  return on plan assets, excluding amounts  recognized in net interest expense/ income		1,999			2,138			2,596
		(5,178	)		(10,816	)		(2,671	)

Sensitivity Analysis of significant actuarial assumption

Sensitivity analysis for the defined benefit obligations will increase/ decrease by the amounts mentioned below if there is a variation of 100 basis points in the discount rate and salary escalation rate.

	Discount rate				Salary escalation rate
	Increase by		Decrease by		Increase by		Decrease by
	100 bps		100 bps		100 bps		100 bps
	(₹ ‘000s)		(₹ ‘000s)		(₹ ‘000s)		(₹ ‘000s)
Present Value of Defined Benefit Obligation		169,401		185,456		185,172		169,472

The present value of defined benefit obligation has been arrived at using the same method as is used for valuing the defined benefit obligation as per the current assumptions. The increase/decrease in defined benefit obligation has been arrived assuming the other assumptions are constant though such increase/decrease do not happen in isolation in real scenarios.

Contributions to defined contribution plans

In accordance with Indian law, all employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and employer make monthly contributions to the plan, each equal to a specified percentage of employee’s basic salary. The Group has no further obligations under the plan beyond its monthly contributions. The Group contributed ₹ 114,374, ₹ 117,941 and ₹ 115,505 for the years ended March 31, 2021, 2020 and 2019. The Group has contributed to 401(K) plans on behalf of eligible employees amounting to ₹ 12,426 (March 31, 2020: ₹ 9,906) during the year ended March 31, 2021.