AGS Transact Technologies Limited

Annexure VI: Notes to the Revised Restated Consolidated Financial

 

Note 35,
Employee benefits

A. Defined Contribution Plans

Contribution to Provident fund, Employee State Insurance and any other funds

information

Amount of Rs. 54.02 million (31 March 2021: Rs. 137.90 milion, 31 March 2020: Rs.140.52 million, 31 March 2019: Rs. 129.33 million) is recognised as an expense and included in “Employee benefit expenses

(refer note 31) in the Revised Restated Consolidated Statement of Profit and Loss.
B. Defined benefit plans

Gratuity

The gratuity benefit payable to the employees of the Group is as per the provisions of the Payment of Gratuity Act, 1972, as amended. Under the gratuity plan, every employee who has completed at least 5 years of
service gets gratuity on separation or atthe time of superannuation calculated for equivalent to 15 days salary for each completed year of service calculated on last drawn basic salary.

The gratuity benefit offered by the Group to its employees isnot funded.

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components:

 

Reconciliation of present value of defined benefit obligation

(Rs. in million)

 

Particulars

‘BL August 2021]

‘31 March 2021]

‘31 March 2020)

‘31 March 2019]

 

 

 

 

   

 

 

 

[Defined benefit obligation at the beginning of the year/period 304.28 259.04 198.65 150.99
|Current service cost 19.04 44.07 38.61 31.99
Past service cost =
Interest cost 7.64 1561 13.73 10.68
Actuarial (gains) losses recognised in Other Comprehensive Income

arising from changes in financial assumptions (a9.35)| 016 1.42 207

arising from changes in demographic assumptions 257) 2.88) (0.78) 2.00

arising on account of experience changes (20.90)} 401 18.82 14.19
Benefits paid directly by the Group (9.18) 4s.73)| aap} 43.27]
[Defined benefit obligation at the end of the yeariperiod 288.96 304.28 259.04 198.65

Amount recognised in Revised Restated Consolidated Statement of Assets and Liabilities (Rs. in million)

Particulars ‘31 August 2021] 31 March 202i| 31 March 2020] 31 March 2019]
[Defined benefit obligation 288.96 304.28 259.04 198.65,
Fair value of plan assets : - :
[Net defined benefit obligation 288.96 304.28 259.04 198.65

 

 

Expense recognised in the Revised Restated Consolidated Statement of Profit and Loss

(Rs. in million)

 

Particulars

‘BL August 2021]

31 March 2021]

31 March 2020)

‘31 March 2019]

 

 

(@ Expense recognised in the Revised Restated Consolidated Statement of Profit and Loss

 

 

 

 

 

‘Current service cost 19.04 44. 38.61 31.99
Past service cost a . . :
Interest cost 7.64 15,61 10.68

26.68 59.68 52.34 2.67
Expense recognised in the Revised Restated Consolidated Other Comprehensive Income
‘Actuarial (gains) / losses on defined benefit obligations
+ arising from changes in financial assumptions (19.35)} 0.16 1.42
+ arising from changes in demographic assumptions s7) 28a) (0.78)
+ arising on account of experience changes (10.90)} 4.01 18.82
(32.82)| 1.29) 19.46

 

 

Actuarial assumptions

 

The principal assumptions used in determining gratuity benefit obligation for the Group's plan i

is shown below:

 

 

 

 

 

 

 

Particulars ‘31 August 2021] 31 March 2021 | 31 March 2020 | 31 March 2019
Financial assumptions

Discount rate 455% -6.40% | 4.35% -6.55% | 5.25%-6.55% | 6.65%. 7.50%
Salary escalation 5% 5% - 7% 5% - 7% 7%
Employee Turnover

21 - 30 years 9% - 49% 11% - 50% 16% - 50%, 1496-46%
[31 - 40 years 7% - 54% 8.70% -50% | 11% - 35% 12%-30%
41 -50 years 5% - 33% 0% - 9% 8.38% -30% | 8%-34%
51 - 59 years 0% -9% 0% - 9% (0% - 9% 0% to 13%

 

 

 

Estimates of future salary increases, considered in actuarial valuation, take account of inflation,

 

promotion and other relevant factors, such as supply and demand in the employment market,

Assumptions regarding future mortality are based on published Statistics & Mortality tables. The calculation of death benefit obligation is sensitive to the mortality assumptions,

The Group expects Rs. 39.50 milion in contribution to be paid to its defined benefit plan inthe next year (31 March 2021: Rs. 42.53 million, 31 March 2020: Rs. 35,65 milion, 31 March 2019: Rs. 23.83 million),

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