| 188 Annual Report | 2024-2025 Financials Arohan Financial Services Limited Notes to financial statements for the year ended March 31, 2025 (Contd.) (All amounts in ` lakhs unless otherwise stated) Note 39: Employee benefits The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under: a) Defined contribution plans Provident and other funds The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards provident fund and other funds which are defined contribution plans. The Company has no obligations other than this to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. Particulars Year ended March 31, 2025 Year ended March 31, 2024 Employers contribution to provident and other fund 3,486.21 2,862.67 b) Defined benefit plans (a) Gratuity The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity as per the provisions of the Payment of Gratuity Act, 1972. The scheme is funded and the scheme is managed by Life Insurance Corporation of India ('LIC'). The liability of gratuity is recognized on the basis of actuarial valuation. Risks associated with plan provisions Salary increases Actual salary increases will result in increase in the Plan’s liability. Increase in salary rate assumption in future valuations will also increase the liability. Investment risk As plan is funded, assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability. Discount rate Reduction in discount rate in subsequent valuations can increase the plan’s liability. Mortality & disability Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities. Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability. (i) Amount recognised in the balance sheet is as under: Particulars Year ended March 31, 2025 Year ended March 31, 2024 Present value of obligation 4,061.94 2,935.46 Fair value of plan assets 1,822.48 1,518.50 Net obligation recognised in balance sheet as provision 2,239.46 1,416.96
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