Pension Plans

12 Months Ended

Mar. 31, 2022

Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]

Pension Plans

Note 11. Pension Plans

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents the contribution payable by the Company to the fund during the year. Defined contribution pension costs during the years ended March 31, 2022 and March 31, 2021 amounted to $833 and $581 respectively.

In addition, the Company’s Swiss subsidiary is affiliated to the collective foundation of AXA LPP Foundation Suisse Romande. Funding is granted by means of defined saving contributions on individual retirement assets implementing a guaranteed interest and a fixed conversion rate for old age pensions of the retirement asset. In Switzerland, pension plans are financed by contributions of both, employees and employer. Contributions are defined by the plan regulations and cannot be decreased without amending the plan regulations. The risks of disability and death before retirement are covered by AXA insurance. The assets are pooled for all affiliated companies; the investment of assets is done by the governing bodies of the collective foundation or by mandated parties. The pension arrangements are based on a contract of affiliation between the Company’s Swiss subsidiary and the AXA pension foundation, which can be terminated by either party. In the event of a termination, the Company’s Swiss subsidiary would have an obligation to find alternative pension arrangements for its employees. Because there is no guarantee that the Swiss employee pension arrangements would be continued under the same conditions, there is a risk, albeit remote, that a pension obligation may fall on the Company’s Swiss subsidiary.

These circumstances require that the Swiss employee pension arrangements be treated as a defined benefit plan under ASC 715 Compensation – Retirement Benefits. Accordingly, an actuarial valuation of the pension obligation has been performed. At March 31, 2022 and 2021, the accumulated pension obligation amounted to $29,555 and $22,648, respectively, as compared with plan assets of $24,778 and $15,751, respectively. Therefore, the net funded status was an obligation of $4,777 and $6,897, as of March 31, 2022 and March 31, 2021 respectively, which were recorded as liabilities on the consolidated balance sheets.

The following provides a reconciliation of the benefit obligations, the plan assets and the funded status.

	Year ended
	March 31, 2022			March 31, 2021
Pension benefit obligation, beginning of year	$	22,648		$	18,789
Service cost		2,498			2,272
Contributions paid by plan participants		11,124			2,704
Interest cost		96			126
Benefits paid		(4,822	)		(2,207	)
Prior service cost		—			—
Actuarial loss / (gain)		(2,443	)		648
Foreign currency translation		454			316
Pension benefit obligation, end of year	$	29,555		$	22,648

The actuarial gain on the projected benefit obligation as at March 31, 2022 resulted from changes in the assumptions compared to those adopted at March 31, 2021. The actuarial gain was primarily due to an increase in the discount rate assumptions in the year. The gain was partially offset by service costs and liability experience attributed to the membership movements during the financial year.

	Year ended
	March 31, 2022			March 31, 2021
Fair value of plan assets, beginning of year	$	15,751		$	12,436
Actual return on plan assets		805			1,293
Contributions paid by employer		1,624			1,333
Contributions paid by plan participants		11,124			2,704
Benefits paid		(4,822	)		(2,207	)
Foreign currency translation		296			192
Fair value of plan assets, end of year	$	24,778		$	15,751

Contributions paid by plan participants include $10,056, and $1,768 of payments into the scheme from new employees joining in the years ended March 31, 2022 and March 31, 2021, respectively.

	Year ended
	March 31, 2022		March 31, 2021
Pension benefit obligation, end of year	$	29,555	$	22,648
Fair value of plan assets, end of year		24,778		15,751
Net funding obligation, end of year	$	4,777	$	6,897

The assumptions used to determine the pension benefit obligation at the end of each financial year are:

	Year ended
	March 31, 2022			March 31, 2021
Price inflation		1.00	%		1.00	%
Discount rate		1.30	%		0.35	%
Interest rate on retirement savings capital		1.30	%		0.60	%
Expected return on plan assets		1.75	%		1.75	%
Average rate of salary increase		1.00	%		1.00	%

Each employee participating in the plan has an individual portfolio that is managed by AXA under a collective arrangement. Plan assets comprise the surrender value of the portfolio of active insured scheme participants. The expected return on plan assets was determined after consideration of current and historical levels of return and discussions with AXA. The discount rate is based on bond yields at March 31, 2022 and March 31, 2021 of high quality corporate bonds taking into account the duration of the liabilities.

The net pension costs for the year are based on the assumptions adopted at the start of each financial year and comprise:

	Year ended
	March 31, 2022			March 31, 2021
Employer service cost	$	2,498		$	2,272
Interest cost		96			126
Expected return on plan assets		(352	)		(243	)
Amortization of prior service credit		58			58
Amortization of net loss		—			—
Net pension cost	$	2,300		$	2,213

The provision for pension benefit obligation recognized in other comprehensive income comprises:

	Year ended
	March 31, 2022			March 31, 2021
Net actuarial (gain) / loss	$	(2,883	)	$	(389	)
Amortization of prior service credit		(58	)		(58	)
Amortization of net loss		—			—
	$	(2,941	)	$	(447	)

The cumulative amounts recognized in other comprehensive income were $95 and $3,035 at March 31, 2022 and March 31, 2021 respectively. This represented a net gain of $452 and net loss of $2,431 at March 31, 2022 and March 31, 2021 respectively and a prior service cost of $547 at March 31, 2022 and $605 at March 31, 2021.

The following benefit payments are expected to be paid in the following periods:

2023	$	1,382
2024	$	1,428
2025	$	1,451
2026	$	1,534
2027	$	1,511
2028 to 2031	$	12,500

Expected annual employer contributions to the plan in the year ending March 31, 2023 amount to $1,948.