| EMPLOYEE BENEFITS OBLIGATIONS |
NOTE 13B — EMPLOYEE BENEFITS OBLIGATIONS
The Company provides for
gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years
are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month
computed proportionately for 15 days salary multiplied for the number of years of service. For the funded plan the group makes contributions
to recognized funds in India. The group does not fully fund the liability and maintains a target level of funding to be maintained over
a period of time based on estimations of expected gratuity payments.
The weighted average duration
of the defined benefit obligation as of March 31, 2025 is 15 years and as of March 31, 2024 and 2023 is 14 years.
The amounts recognized in
the Statement of Financial Position and the movements in the net defined benefit obligation over the years ended March 31, 2025, 2024
and 2023 are as follows:
| (a) | The liabilities recognized in the standalone statement of financial position are: |
| | |
As at
March 31,
2025 | | |
As at
March 31,
2024 | |
| | |
(US$) | | |
(US$) | |
| Funded Plans | |
| | |
| |
| Net value of defined benefit obligations | |
| | |
| |
| Current | |
| 3,002 | | |
| 209 | |
| Non-current | |
| 97,387 | | |
| 102,322 | |
| (b) | The movement in defined benefit obligations for funded and unfunded plans is as follows: |
| Particulars | |
Defined
benefit
obligation | | |
Fair
value of
plant assets | |
| As at April 1, 2023 | |
| 72,668 | | |
| — | |
| Included in profit and loss | |
| | | |
| | |
| Service cost | |
| 27,550 | | |
| — | |
| Past service credit | |
| — | | |
| — | |
| Interest cost (income) | |
| 3,057 | | |
| — | |
| | |
$ | 103,275 | | |
| — | |
| | |
| | | |
| | |
| Included in OCI | |
| | | |
| | |
| Actuarial (gain)/loss | |
| — | | |
| — | |
| Remeasurements | |
| — | | |
| — | |
| Benefits paid | |
| — | | |
| — | |
| Gain and loss on settlement | |
| — | | |
| — | |
| Exchange difference | |
| (744 | ) | |
| — | |
| | |
| | | |
| | |
| Employer’s contribution | |
| | | |
| | |
| Benefits payment | |
| | | |
| | |
| As at March 31, 2024 | |
$ | 102,531 | | |
| — | |
| Particulars | |
Defined
benefit
obligation | | |
Fair
value of
plant assets | |
| As at April 1, 2024 | |
$ | 102,531 | | |
| — | |
| Included in profit and loss | |
| | | |
| | |
| Service cost | |
| 6,880 | | |
| — | |
| Past service credit | |
| — | | |
| — | |
| Interest cost (income) | |
| 1,514 | | |
| — | |
| | |
$ | 110,925 | | |
| — | |
| | |
| | | |
| | |
| Included in OCI | |
| | | |
| | |
| Actuarial (gain)/loss | |
| (8,021 | ) | |
| — | |
| Remeasurements | |
| — | | |
| — | |
| Benefits paid | |
| — | | |
| — | |
| Gain and loss on settlement | |
| — | | |
| — | |
| Exchange difference | |
| (2,513 | ) | |
| — | |
| | |
| (10,534 | ) | |
| — | |
| Employer’s contribution | |
| — | | |
| — | |
| Benefits payment | |
| — | | |
| — | |
| As at March 31, 2025 | |
$ | 100,389 | | |
| — | |
| (c) |
Plan assets for funded plan are comprised as follows: |
Plan assets comprise the following.
| Particulars | |
As at
March 31,
2025 | | |
As at
March 31,
2024 | |
| Debt instruments – unquoted | |
| | |
| |
| Cash and cash equivalents | |
| — | | |
| — | |
| Investment property | |
| — | | |
| — | |
| Fixed assets | |
| — | | |
| — | |
| Other assets | |
| — | | |
| — | |
| | |
| — | | |
| — | |
| (d) |
Actuarial assumptions |
| (i) | The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages). |
| Particulars | |
As at
March 31,
2025 | | |
As at
March 31,
2024 | |
| Discount rate | |
| 6.75 | % | |
| 7.20 | % |
| Attrition rate | |
| 5 | % | |
| 5 | % |
| Future salary growth rate | |
| 10 | % | |
| 10 | % |
| (ii) | Assumptions regarding future longevity have been based on published statistics and mortality tables. The current longevities underlying the values of the defined benefit obligation at the reporting date were as follows. |
| Particulars | |
As
at
March 31,
2025 | | |
As
at
March 31,
2024 | |
| Longevity at age of 65 for current members
aged above 45 | |
| | |
| |
| Males | |
| 0.258% - 2.406 | % | |
| 0.258% - 2.406 | % |
| Females | |
| 0.258% - 2.406 | % | |
| 0.258%
- 2.406 | % |
| | |
| | | |
| | |
| Longevity at age of 65 for current members
aged up to 45 | |
| | | |
| | |
| Males | |
| 0.092% - 0.168 | % | |
| 0.092%
- 0.168 | % |
| Females | |
| 0.092% - 0.168 | % | |
| 0.092%
- 0.168 | % |
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 | |
As of
March 31,
2024
(Decrease)
(US$) | | |
As of
March 31,
2024
(Increase)
(US$) | | |
As of
March 31,
2025
(Decrease)
(US$) | | |
As of
March 31,
2025
(Increase)
(US$) | |
| Discount Rate (- / + 1%) | |
| 88,856 | | |
| 68,099 | | |
| 116,358 | | |
| 87,367 | |
| Salary Growth Rate (- / + 1%) | |
| 68,322 | | |
| 88,061 | | |
| 87,956 | | |
| 114,410 | |
| Attrition Rate (- / + 50% of attrition rates) | |
| 85,487 | | |
| 71,754 | | |
| 112,482 | | |
| 91,932 | |
| Mortality Rate (- / + 10% of mortality rates) | |
| 77,515 | | |
| 77,383 | | |
| 100,489 | | |
| 100,290 | |
|