Retirement Benefits

12 Months Ended

Mar. 31, 2015

Compensation And Retirement Disclosure [Abstract]

16.

Retirement Benefits

Gratuity

The Company provides for gratuity on an actuarial valuation. The Company has an unfunded defined benefit retirement plan covering eligible employees in India. This plan provides for a lump-sum payment to be made to vested employees at retirement, death or termination of employment of an amount equivalent to 15 days basic salary, payable for each completed year of service. These gratuity benefits vest upon an employee’s completion of five years of service.

The following tables set out the amounts recognized in the Company’s consolidated financial statements for the fiscal years ended March 31, 2013, 2014 and 2015. The measurement date used is March 31 of the relevant fiscal year.

	2013		2014		2015
	US$		US$		US$
Change in benefit obligation
Benefit obligation at the beginning of the year		446,146		527,512		511,506
Actuarial (gain) loss		14,941		(60,402)		27,963
Service cost		75,039		75,405		69,402
Interest cost		44,025		46,086		52,790
Benefits paid		(26,382)		(27,314)		(70,427)
Effect of exchange rate changes		(26,257)		(49,781)		(22,184)
Benefit obligation at the end of the year		527,512		511,506		569,050
Current – (included in other employee payables)		47,713		45,226		37,961
Non-current – (included in retirement benefits)		479,799		466,280		531,089

Accumulated benefit obligation was US$292,701 and US$319,026 as of March 31, 2014 and 2015 respectively.

Net gratuity cost for the years ended March 31, 2012, 2013 and 2014 comprise of the following:

	2013		2014		2015
	US$		US$		US$
Service cost		75,039		75,405		69,402
Interest cost		44,025		46,086		52,790
Recognized net actuarial (gain) loss		14,941		(60,402)		27,963
Net gratuity cost		134,005		61,089		150,155

The assumptions used in accounting for gratuity in the years ended March 31, 2013, 2014 and 2015 were as follows:

	2013			2014			2015
Discount rate		8.75	%		9.60	%		8.45	%

Rate of increase in compensation		7.00	%		7.00	%		7.00	%

The following benefit payments, which reflect expected future services, as appropriate are expected to be paid

Year ending March 31,	US$
2016		37,961
2017		123,838
2018		45,854
2019		62,965
2020		57,837
2021-2025		493,338

The expected benefits are based on the same assumptions used to measure the Company’s benefit obligation as of March 31, 2015.

Provident Fund

Employees based in India and the Company each, contribute at the rate of 12% of salaries to a provident fund maintained by the Government of India for the benefit of such employees. The provident fund is a defined contribution plan. Accordingly, the Company expenses such contributions as incurred. Amounts contributed by the Company to the provident fund, in aggregate, were US$259,684, US$228,075 and US$231,528 for the years ended March 31, 2013, 2014 and 2015, respectively.