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Employee Benefits
 12 Months Ended
Mar. 31, 2024
Disclosure Of Employee Benefit Plan [Abstract]  
Employee Benefits
32)
EMPLOYEE BENEFITS

 

 

 

As at March 31

 

Particulars

 

2023

 

 

2024

 

Net defined benefit liability

 

 

7,090

 

 

 

9,316

 

Other long term employee benefit (liability for compensated absences)

 

 

1,796

 

 

 

2,346

 

Total employee benefit liabilities

 

 

8,886

 

 

 

11,662

 

 

 

 

As at March 31

 

Particulars

 

2023

 

 

2024

 

Present value of unfunded obligation

 

 

7,090

 

 

 

9,316

 

Total

 

 

7,090

 

 

 

9,316

 

 

Defined Benefit Plan

The Group’s gratuity scheme for the employees of its Indian subsidiaries is a defined benefit plan. The plan in Q2T is funded, whereas plan for the rest of Indian subsidiaries are unfunded. Gratuity is paid as a lump sum amount to employees at retirement or termination of employment at an amount based on the respective employee’s eligible salaries and the years of employment with the Group.

 

A. Movement in the net defined benefit liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined liability and its components:

 

Particulars

 

Defined benefit
obligation

 

 

Fair value of plan
assets

 

 

Net defined benefit
liability

 

 

 

As at March 31

 

 

As at March 31

 

 

As at March 31

 

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

Balance as at April 1

 

 

7,457

 

 

 

7,245

 

 

 

(199

)

 

 

(155

)

 

 

7,258

 

 

 

7,090

 

Acquired through business combination (refer note 7(b), 7 (c) and 7 (d))

 

 

115

 

 

 

95

 

 

 

—

 

 

 

—

 

 

 

115

 

 

 

95

 

Included in profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current service cost

 

 

1,133

 

 

 

1,180

 

 

 

—

 

 

 

—

 

 

 

1,133

 

 

 

1,180

 

Past service cost (credit)

 

 

—

 

 

 

(307

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(307

)

Interest cost (income)

 

 

394

 

 

 

492

 

 

 

(11

)

 

 

(11

)

 

 

383

 

 

 

481

 

 

 

1,527

 

 

 

1,365

 

 

 

(11

)

 

 

(11

)

 

 

1,516

 

 

 

1,354

 

Included in other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement loss (gain) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Actuarial loss (gain) arising from :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-demographic assumptions

 

 

(9

)

 

 

854

 

 

 

—

 

 

 

—

 

 

 

(9

)

 

 

854

 

-financial assumptions

 

 

(327

)

 

 

17

 

 

 

—

 

 

 

—

 

 

 

(327

)

 

 

17

 

-experience adjustment

 

 

(130

)

 

 

340

 

 

 

—

 

 

 

—

 

 

 

(130

)

 

 

340

 

-Return on plan assets excluding interest income

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

1

 

 

 

(2

)

 

 

1

 

 

 

(466

)

 

 

1,211

 

 

 

(2

)

 

 

1

 

 

 

(468

)

 

 

1,212

 

Effects of movement in foreign exchange rates

 

 

(609

)

 

 

(118

)

 

 

15

 

 

 

3

 

 

 

(594

)

 

 

(115

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution by employer

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(2

)

 

 

(1

)

 

 

(2

)

Benefits paid

 

 

(779

)

 

 

(331

)

 

 

43

 

 

 

13

 

 

 

(736

)

 

 

(318

)

Balance as at March 31

 

 

7,245

 

 

 

9,467

 

 

 

(155

)

 

 

(151

)

 

 

7,090

 

 

 

9,316

 

 

 

Represented by:

 

 

 

 

As at March 31

 

Particulars

 

2023

 

 

2024

 

Present value of defined benefit obligation

 

 

7,245

 

 

 

9,467

 

Less: fair value of plan assets

 

 

(155

)

 

 

(151

)

Net defined benefit liability

 

 

7,090

 

 

 

9,316

 

 

During the year ended March 31, 2024, the gratuity plan for the employees was amended for revision in the underlying ceiling limits.

B.
Actuarial assumptions

 

Principal actuarial assumptions are given below:

 

 

 

As at March 31

Particulars

 

2023

 

2024

Discount rate (per annum)

 

7.00%-7.20%

 

6.90%-7.00%

Future salary growth (per annum)

 

5.00%-11.00%

 

7.00%-11.00%

Withdrawal rate

 

5.00%-25.00%

 

5.00%-25.00%

Retirement age (years)

 

58-65

 

58-65

 

Assumptions regarding future mortality rates are based on Indian Assured Lives Mortality (2006-08) Ultimate as published by Insurance Regulatory and Development Authority (IRDA).

The actuarial valuation is carried out half yearly by an independent actuary. The discount rate used for determining the present value of obligation under the defined benefit plan is determined by reference to market yields at the end of the reporting period on Indian Government Bonds. The currency and the term of the government bonds is consistent with the currency and term of the defined benefit obligation.

The future salary growth rate takes into account inflation, seniority, promotion and other relevant factors on long-term basis.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

C.
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:

 

Particulars

 

For the year ended
March 31, 2023

 

 

For the year ended
March 31, 2024

 

 

 

Increase

 

 

Decrease

 

 

Increase

 

 

Decrease

 

Discount rate (1% movement)

 

 

(269

)

 

 

292

 

 

 

(560

)

 

 

630

 

Future salary growth (1% movement)

 

 

281

 

 

 

(266

)

 

 

594

 

 

 

(542

)

Withdrawal rates (5%-10% movement)

 

 

(514

)

 

 

883

 

 

 

(884

)

 

 

1,853

 

 

 

D.
Plan assets

 

Plan assets comprise the following:

 

 

 

As at March 31

 

Particulars

 

2023

 

 

2024

 

Funds managed by the insurer

 

 

100

%

 

 

100

%

 

E. Description of plan characteristics

The Gratuity scheme is a final salary defined benefit plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit.

F. Description of plan associated risks

1. Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

2. Salary inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

3. Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

G. Expected benefit payments for the year ending:

 

 

 

Amount

 

March 31, 2025

 

 

1,211

 

March 31, 2026

 

 

1,150

 

March 31, 2027

 

 

1,337

 

March 31, 2028

 

 

2,127

 

March 31, 2029

 

 

1,786

 

Thereafter

 

 

9,898

 

 

H. The Group expects to pay USD 38 in contributions to its defined benefit plans in the next annual reporting period.

 

I. The weighted average duration of the defined benefit obligation is 3-8 years (March 31, 2023: 3.5-8 years).