v3.26.1
DEFINED BENEFIT PLAN
 12 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
DEFINED BENEFIT PLAN

NOTE 4: DEFINED BENEFIT PLAN

 

The subsidiary company “FatPipe Networks Private Limited” provides a defined benefit gratuity plan to eligible employees in accordance with applicable labor laws of India. The gratuity benefit is payable upon separation from service and is based on the last drawn salary and years of credited service. The plan is unfunded, and the Company meets the liability as it becomes due.

 

The following is a summary of the Company’s plan:

 

Reconciliation of Benefit Obligation

 

   2026   2025 
   March 31, 
   2026   2025 
Beginning balance  $146,063   $121,392 
Service cost   45,318    13,581 
Interest cost   9,612    8,650 
Actuarial (gain)/loss   (4,992)   7,535 
Gross benefits paid   (13,459)   (1,592)
Exchange rate adjustment   (16,447)   (3,503)
Ending balance  $166,095   $146,063 

 

Net Periodic Benefit Cost

 

   2026   2025 
  

Year Ended

March 31,

 
   2026   2025 
Service cost  $45,318   $13,581 
Interest cost   9,612    8,650 
Recognized net actuarial loss/(gain)   (4,992)   7,534 
Net periodic benefit cost included in income from operations  $49,938   $29,765 

 

 

Assumptions

 

The following assumptions, which are the weighted average for all plans, are used to calculate the benefit obligation at March 31 of each year and the net periodic benefit cost for the subsequent year.

 

   March 31, 
   2026   2025 
Discount rate   7.30%   6.79%
Expected return on plan assets   NA    NA 
Rate of compensation increase   7%   7%

 

The discount rate as of March 31, 2026 is based on 12 year government bond yields of India.