v3.26.1
Employee Benefit Plans (Unfunded)
 3 Months Ended
Jun. 30, 2026
Employee Benefit Plans (Unfunded) [Abstract]  
Employee benefit plans (unfunded)
25 Employee benefit plans (unfunded)

 

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 Condensed 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
As at		   June 30,
2026		     March 31,
2026		  
Current            
Gratuity   $ 105,555     $ 104,910  
Compensated absences     61,389       72,629  
    $ 166,944     $ 177,539  
Non-current                
Gratuity   $ 245,686       242,179  
Compensated absences     118,749       126,243  
Other statutory dues     1,873       2,007  
    $ 366,308     $ 370,429  

 

I. Gratuity      
    June 30,
2026		     June 30,
2025		  
Changes in projected benefit obligation (PBO)            
PBO at the beginning of the year   $ 347,089     $ 304,509  
Service cost     16,661       18,507  
Interest cost     5,697       4,887  
Actuarial loss     2,355       30,693  
Benefits paid     (19,338 )     (10,389 )
Effect of exchange rate changes     (1,223 )     (1,038 )
PBO at the end of the year   $ 351,241     $ 347,169  
Accrued pension liability                
Current liability   $ 105,555     $ 78,942  
Non-current liability     245,686       268,225  
    $ 351,241     $ 347,167  
                 
Accumulated benefit obligation   $ 286,347     $ 267,755  

 

Net gratuity cost recognized in income statement            
    June 30,
2026		     June 30,
2025		  
Service cost   $ 16,661     $ 18,507  
Interest cost     5,697       4,887  
Amortization of net actuarial loss/(gain)     2,291       (302 )
Net periodic benefit cost   $ 24,649     $ 23,092  

 

Re-measurement losses in other comprehensive income            
    June 30,
2026		     June 30,
2025		  
Actuarial Loss   $ 2,355     $ 30,693  
Change in Plan assets     -       -  
Amortization (loss)/gain     (2,291 )     302  
Total   $ 64     $ 30,995  

 

Components of actuarial loss:

            
    June 30,
2026		     June 30,
2025		  
Actuarial gain due to demographic assumption changes in defined benefit obligation   $ 44,300     $ 6,575  
Actuarial loss due to financial assumption changes in defined benefit obligation     (7,495 )     7,346  
Actuarial loss due to experience on defined benefit obligation     (34,450 )     16,772  
Total   $ 2,355     $ 30,693  

 

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

 

    June 30,
2026		     June 30,
2025		  
Discount rate - staff     6.30 %     6.14 %
Discount rate - independent service provider*     6.21 %     6.04 %
Attrition rate - staff     40.52 %     39.24 %
Attrition rate - independent service provider*     62.41 %     72.84 %
Rate of increase in compensation levels - staff     12.06 %     13.31 %
Rate of increase in compensation levels - independent service provider*     8.64 %     10.38 %

 

* Independent service provider are contract employees responsible for assisting in the day to day operations of the Company.

 

During the quarter ended June 30, 2026 and June 30, 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.

 

Expected benefit payments as of June 30, 2026 is as follows:

 

Year ended March 31,

2027     79,166  
2028     69,426  
2029     41,884  
2030     27,689  
2031     17,486  
Thereafter     115,590  
Total   $ 351,241  

 

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 Condensed Consolidated Balance Sheets date. The amount of compensated absences cost is ($2,590) for the quarter ended June 30, 2026 ($34,594 for the quarter ended June 30, 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 $81,155 for the quarter ended June 30, 2026 ($58,712 for the quarter ended June 30, 2025 respectively).