Employee benefit plans includes gratuity and compensated absences payable to employees. These benefit plans consist of a defined benefit plan for gratuity payable by the Indian subsidiary of the Company under Indian regulations. These are determined under the projected unit credit method, with actuarial valuations being carried out at each reporting date. The retirement benefit obligations recognized in the Consolidated Balance Sheets represents the present value of the defined obligations. Under an employee benefit plan, it is the Company’s obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The summary of current and non-current employee benefit plans obligations along with its components are as below:

Pension and other employee obligations

The assumptions used in accounting for the gratuity plan are as follows:

During the year ended March 31, 2026 and March 31, 2025, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations.

The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium.

Sensitivity analysis for the :

Expected benefit payments as of March 31, 2026 is as follows:

II. Compensated absences

The employees are permitted to encash a maximum of 45 days of accumulated leave balance on separation. The Company has provided liability for compensated absences as per an actuarial valuation carried out by an independent actuary as of the Consolidated Balance Sheets date. The amount of compensated absences cost is $39,297 for the year ended March 31, 2026 ($ 37,723 for the year ended March 31, 2025).

III. Defined contribution plan

The Indian subsidiary makes provident fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Indian subsidiary is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions are made to provident fund in accordance with the fund rules. The interest rate payable to the beneficiaries every year is notified by the Government. The amount of contributions made to provident fund is $212,203 for the year ended March 31, 2026 ($266,053 for the year ended March 31, 2025 respectively).

In prior years, the Company recognized liabilities for potential exposures relating to Employees’ Provident Fund (“PF”), Employees’ State Insurance (“ESI”), Professional Tax (“PT”) and gratuity (including applicable interest) in respect of certain individual service providers (“ISPs”) who were engaged as independent consultants during FY 2017-18 to FY 2020-21.

During the year ended March 31, 2026, the Company obtained an external legal opinion and, based on such opinion together with management’s assessment of the relevant facts and circumstances, including the new wage code effective November 21, 2025, concluded that no present obligation exists as of the reporting date in respect of these matters. Accordingly, the previously recognized liability was reversed during the year ended March 31, 2026, resulting in a gain of $1,231,164 which has been presented under “Gain on write off of liabilities.”