Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024
Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024
27 Revenue from Contracts with Customers The billing schedules agreed with customers include periodic performance-based payments and / or milestone based progress payments. Invoices are payable within contractually agreed credit period. Revenue disaggregation by nature of services is as follows:
(b) Defined benefit plans Gratuity:
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years and more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contribution to recognised fund in India. Key assumptions used for actuarial valuation by an independent actuary under the Projected Unit Credit Method are as under:
(in Rupees million) Year ended March 31, 2023
Year ended March 31, 2024
Particulars
Analytical services
11,447 11,447
9,941
As at March 31, 2024
As at March 31, 2023
Particulars Discount rate
9,941 While disclosing the aggregate amount of transaction price yet to be recognised as revenue towards unsatisfied (or partially satisfied) performance obligations, along with the broad time range for the expected time to recognise those revenues, the Company has applied the practical expedient in Ind AS 115. Accordingly, the Company has not disclosed the aggregate transaction price allocated to unsatisfied (or partially satisfied) performance obligations which pertain to contracts where revenue recognized corresponds to the value transferred to customer typically involving time and material, outcome based and event based contracts. The Company has applied practical expedient as per paragraph 121 of Ind AS 115 and does not disclose information about remaining performance obligations that have original expected duration of one year or less. No client individually accounted for more than 10% of the third party revenue for the years ended March 31, 2024 and March 31, 2023, respectively. Revenue details with related parties are disclosed in note 29 - Related parties. Changes in contract assets are as follows:
7.15% 9.00%
7.50%
Future salary increases
10.00%
Attrition rate Based on Completed Years of service Up to 2 years
10.00%
23.00%
3 - 4 years
6.00% 2.00%
5.00% 2.00%
Above 4 years Mortality rate
Indian Assured Lives Mortality (2012-14) Ultimate -100%
Indian Assured Lives Mortality (2012-14) Ultimate -100%
Notes: 1. Discount rate: The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations. 2. Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. 3. Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life Insurance Corporation of India.
Balance at the beginning of the year Revenue recognized during the year Invoices raised during the year Balance at the end of the year
29
44
383
251
(323)
(266)
The amounts recognised in the balance sheet and movements in the net defined benefit obligation (DBO) over the year are as follows :
89
29
Contract assets represent right to receive consideration for services delivered but not billed. Changes in unearned revenue are as follows:
(in Rupees million) As at March 31, 2023
As at March 31, 2024
Change in the present value of obligation
Balance at the beginning of the year
53
50
Present value of obligation at the beginning of the year Liability on account of business combinations (Refer note 35)
404
296
Revenue recognized out of the balance at the beginning of the year
(23)
(30)
-
14 22
Increase due to invoicing during the year, excluding amounts recognized as revenue during the year
41
33
Interest cost
29
Balance at the end of the year
71
53
Past service cost* Current service cost
-
0
173
132
Reconciliation of revenue recognised with the contracted price is as follows: Contracted price
Benefits paid
(34)
(33)
11,448
9,941
Remeasurement due to Actuarial (Gain)/loss arising from change in financial assumptions Actuarial (Gain)/loss arising on account of experience changes Actuarial loss arising on account of demographical assumptions Present value of obligation at the end of the year
Less: Discount
(1)
-
(26)
(14) (24)
Revenue recognised as per statement of profit and loss
11,447
9,941
6 1
11
553
404
28 Employee Benefits (a) Defined contribution plan
*denotes amount less than C 1 million. The amounts recognised in the balance sheet and movements in the fair value of plan assets over the year are as follows : Change in the fair value of plan assets Fair value of plan assets at the beginning of the year 311 214 Expected returns on plan assets (1) (2) Interest on plan assets 23 15 Contributions made by the Company 63 84 Fair value of plan assets at the end of the year 396 311 Note: The Company has invested 100% amounts in pension funds with Life Corporation of India (LIC).
The Company has a defined contribution plan in respect of provident fund. Contributions are made to provident fund in India for employees as per regulations. The contributions are made to registered provident fund administered by the Government of India. The obligation of the Company is limited to the amount contributed and it has neither further contractual nor any constructive obligation.
(in Rupees million) Year ended March 31, 2023
Year ended March 31, 2024
Particulars
Employer's contribution to provident fund
208
164
Included in 'Contribution to provident fund under employee benefits expense (Refer note 22)
162
163
Fractal Analytics Limited | Annual Report 2023-24
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