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Employee Benefit Plans (Unfunded)
12 Months Ended
Mar. 31, 2024
Employee Benefit Plans (Unfunded) [Abstract]  
Employee benefit plans (unfunded)
29Employee benefit plans (unfunded)

 

Employee benefit plans includes gratuity and compensated absences payable to employees. These benefit plans consist 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 Sheet 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 it’s components are as below:

 

Pension and other employee obligations

 

As at  March 31,
2024
   March 31,
2023
 
Current        
Gratuity  $93,967   $70,872 
Compensated absences   89,688    75,134 
   183,655    146,006 
Non current          
Gratuity   258,524    215,841 
Compensated absences   232,925    222,967 
    491,449    438,808 

 

I. Gratuity

 

   March 31, 2024   March 31, 2023 
Changes in projected benefit obligation (PBO)        
PBO at the beginning of the year  $286,714   $341,727 
Service cost   96,167    97,679 
Interest cost   17,541    18,405 
Actuarial loss/ (gain)   48,593    (45,373)
Benefits paid   (91,798)   (100,528)
Effect of exchange rate changes   (4,725)   (25,196)
PBO at the end of the period   352,492    286,714 
           
Accrued pension liability          
Current liability  $93,967   $70,872 
Non-current liability   258,524    215,841 
    352,492    286,714 
Accumulated benefit obligation   260,054    202,036 

 

Net gratuity cost recognized in income statement

 

   March 31, 2024   March 31, 2023 
Service cost  $96,167   $97,679 
Interest cost   17,541    18,405 
Amortization of net actuarial (gains)/loss   (21,124)   (18,290)
Net periodic benefit cost   92,584    97,794 

 

Re-measurement (gains) / losses in other comprehensive income

 

   March 31, 2024   March 31, 2023 
Actuarial (gain)/loss  $48,593   $(45,373)
Amortization loss   (21,124)   (18,290)
Total   69,717    (27,083)

 

Components of actuarial gain:

 

   March 31, 2024   March 31, 2023 
Actuarial (gain)/loss due to demographic assumption changes in defined benefit obligation  $(4,289)  $(11,440)
Actuarial (gain)/ loss due to financial assumption changes in defined benefit obligation   1,977    (7,033)
Actuarial (gain)/loss due to experience on defined benefit obligation   50,904    (26,900)
Total   48,592    (45,373)

 

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

 

   March 31, 2024   March 31, 2023 
Discount rate - staff   7.17%   7.37%
Discount rate - independent service provider*   7.12%   7.25%
Attrition rate - staff   39.54%   36.00%
Attrition rate - independent service provider*   85.68%   92.00%
Rate of increase in compensation levels - staff   12.63%   12.67%
Rate of increase in compensation levels - independent service provider*   11.43%   14.50%

 

*Independent service provider are contract employees responsible for maintaining the fleet of the Company.

 

During the period ended March 31, 2024 and March 31, 2023, actuarial gain 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 :

 

  March 31, 2024   March 31, 2023 
Year ended  Increase   Decrease   Increase   Decrease 
Discount rate (- / + 1%)  $(13,591)  $14,904   $14,216   $(12,795)
Salary growth rate (- / + 1%)   6,933    (6,668)   7,934    (8,508)
Attrition rate (- / + 1%)   (2,864)   2,918    4,801    (4,551)
Mortality rate (- / + 10% of mortality rates)   19    -    -    (51)
                     
Expected benefit payments for the year ending March 31,                    
2025                  99,094 
2026                  50,867 
2027                  38,071 
2028                  21,328 
2029                  14,049 
Thereafter                  129,083 
Total                  352,492 

 

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 on the Balance Sheet date. The amount of compensated absences cost is $139,965 and $98,130 for the years ended March 31, 2024 and March 31, 2023 respectively.

 

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 $432,936 and $622,401 for the years ended March 31, 2024 and March 31, 2023 respectively.