Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

nOTE 16: EMPLOYEE BENEFIT PLANS

TRAQ Pvt Ltd.’s Gratuity Plan provides for lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees.

The benefit obligation has been measured as of December 31, 2019. The gratuity plan is unfunded. The following table sets forth the activity of the Gratuity Plans and the amounts recognized in the Company’s financial statements for the period May 16, 2019 through December 31, 2019:

	Period May 16, 2019 through
	December 31, 2019
Change in projected benefit obligation:
Projected benefit obligation as of May 16, 2019	$	65,550
Service cost		6,982
Interest cost		3,106
Benefits paid		(1,932	)
Actuarial gain (loss) on the Obligation		13,086
Effect of exchange rate changes		(1,198	)
	$	85,594
Projected benefit obligation as of December 31, 2019
Unfunded amount – non-current	$	74,781
Unfunded amount - current		10,813
Total accrued liability	$	85,594
Components of net period benefit costs:
Service cost	$	6,982
Interest cost		3,106
Actuarial gain (loss) on the Obligation		11,888
	$	21,976

The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are:
Discount rate	6.70% per annum
Rate of increase in compensation levels	10.00 % per annum

Leave Encashment:

The other long-term employee benefits has been measured as of December 31, 2019. The following table sets forth the activity of the leave encashment and the amounts recognized in TRAQ Pvt Ltd.’s financial statements at the end of the period May 16, 2019 through December 31, 2019:

	Period May 16, 2019 through
	December 31, 2019
Change in projected benefit obligation:
Projected benefit obligation as of May 16, 2019	$	24,243
Service cost		3,646
Interest cost		940
Benefits paid		(919	)
Actuarial gain (loss) on the Obligation		5,617
Effect of exchange rate changes		(457	)
	$	33,070
Projected benefit obligation as of December 31, 2019
Unfunded amount – non-current	$	5,388
Unfunded amount - current		27,682
Total accrued liability	$	33,070
Components of net period benefit costs:
Service cost	$	3,646
Interest cost		940
Actuarial gain (loss) on the Obligation		5,160
	$	9,746

The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are:
Discount rate	6.70% per annum
Rate of increase in compensation levels	10.00 % per annum