v3.26.1
Employee benefit plans
 12 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Employee benefit plans

15 Employee benefit plans

 

The Company has employee benefit plans in the form of certain statutory and other programs covering its employees.

 

Defined benefit plan (unfunded)

 

In accordance with Indian law, the Indian Subsidiaries of The Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. There is no plan asset against the defined benefit plan.

 

The following table sets forth the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of March 31 2026 and 2025:

 

Change in benefit obligation 

As of

March 31, 2026

  

As of

March 31, 2025

 
         
Projected benefit obligation at the beginning of the year   295,231    264,527 
Interest costs   19,137    18,610 
Past service cost   16,771    - 
Service costs   80,969    75,401 
Actuarial (gain) loss   (43,282)   (40,582)
Benefits paid   (36,991)   (15,902)
Effect of exchange rate changes   (29,202)   (6,823)
Projected benefit obligation at the end of the year   302,633    295,231 
           
Amounts recognized in the Consolidated Balance Sheets consist of          
Current liabilities (recorded under accrued expenses and other current liabilities)   22,667    25,464 
Non-current liabilities (recorded under other liabilities)   279,966    269,767 
    302,633    295,231 

 

 

Roadzen Inc.

Notes to the consolidated financial statements

(in US $, except share count)

 

Net defined benefit plan costs include the following components for:

 

  

As of

March 31, 2026

  

As of

March 31, 2025

 
Interest costs   19,137    18,610 
Service costs   80,969    75,401 
Actuarial (gain) loss   (43,282)   (40,582)
Total   56,824    53,429)

 

The estimated net defined benefit plan cost over the next fiscal year is $22,661.

 

The principal assumptions used in determining gratuity for the Company’s plans are shown below:

 

   

As of

March 31, 2026

    

As of

March 31, 2025

  
Discount rate     7.78% / 7.90 %     7.04% / 6.99 %
Rate of increase in compensation per annum     10% / 5.50 %     10% / 5.50 %
Retirement age (in years)     60       60  

 

The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards.

 

The expected benefit plan payments set forth below reflect expected future service:

 

Year ending March 31  Amounts 
2027   22,661 
2028   36,470 
2029   44,520 
2030   62,036 
2031   62,987 
2032-2036   497,537 
Expected benefit plan payments   726,211 

 

The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of March 31, 2026

 

Defined contribution plans

 

The Indian Subsidiaries of The Company makes contributions to Employee provident fund and Employee state insurance, determined as a specified percentage of employee salaries, in respect of qualifying employees towards defined contribution schemes. During the years March 31, 2026 and March 31, 2025, the Company contributed $71,202 and $135,330 respectively to defined contribution plans in India.

 

 

Roadzen Inc.

Notes to the consolidated financial statements

(in US $, except share count)