| 190 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) (v) Movement in the plan assets recognised in the balance sheet is as under: Particulars Year ended March 31, 2025 Year ended March 31, 2024 Fair value of plan assets at beginning of the year 1,518.50 966.01 Interest income on plan assets 114.14 87.84 Employer's contribution 612.65 864.69 Benefits paid (388.64) (356.65) Return on plan assets (34.17) (43.39) Fair value of plan assets at the end of the year 1,822.48 1,518.50 (vi) Actuarial assumptions Particulars Year ended March 31, 2025 Year ended March 31, 2024 Discounting rate 6.50% 7.20% Future salary increase 8.00% 8.00% Retirement age (in years) 60 60 Withdrawal rate upto 5 years of service 50% 50% More than 5 years of service 1% 1% Weighted average duration (in years) 11 12 Mortality rates as per Indian Assured Life Mortality (2006-08) ultimate Gratuity is payable to the employees on death or resignation or on retirement at the attainment of superannuation age. To provide for these eventualities, the Actuary has used Indian Assured Lives Mortality (2006-08) Ultimate table. (vii) Sensitivity analysis for gratuity liability Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below: Particulars Year ended March 31, 2025 Year ended March 31, 2024 Impact of the change in discount rate Present value of obligation at the end of the year - Impact due to increase of 1% (566.61) (394.08) - Impact due to decrease of 1% 707.85 491.18 Impact of the change in salary increase Present value of obligation at the end of the year - Impact due to increase of 1% 701.00 481.24 - Impact due to decrease of 1% (572.15) (394.15) Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these is not calculated. Sensitivities as to rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable. Note 39: Employee benefits (cont'd) b) Defined benefit plans (cont'd)
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