Notes to the Consolidated Financial Statements as at and for the year ended March 31, 2024
Notes to the Consolidated Financial Statements as at and for the year ended March 31, 2024
Changes in contract assets are as follows:
Key assumptions used for actuarial valuation by an independent actuary under the Projected Unit Credit Method are as under:
As at March 31, 2024
As at March 31, 2023
(in Rupees million)
Particulars Discount rate
Year ended March 31, 2024
Year ended March 31, 2023
Particulars
7.15% 9.00%
7.50%
Balance at the beginning of the year
555
524
Future salary increases
10.00%
Derecognition on account of change in relationship from subsidiary to associate
-
(116)
Attrition rate Based on Completed Years of service Up to 2 years
Revenue recognized during the year Invoices raised during the year
6,417
3,650
(6,084)
(3,538)
10.00%
23.00%
Exchange differences on translating the financial statements of foreign operations
8
35
3 - 4 years
6.00% 2.00%
5.00% 2.00%
Balance at the end of the year
896
555
Above 4 years Mortality rate
Indian Assured Lives Mortality (2012-14) Ultimate -100%
Indian Assured Lives Mortality (2012-14) Ultimate -100%
Changes in unearned revenue are as follows:
Balance at the beginning of the year
868
836
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. (a) The amounts recognised in the consolidated balance sheet and movements in the net defined benefit obligation (DBO) are as follows : (in Rupees million) As at March 31, 2024 As at March 31, 2023 Change in the present value of obligation Funded Plan* Unfunded Plan Funded Plan* Unfunded Plan Present value of obligation at the beginning of the year 383 47 296 40
Derecognition on account of change in relationship from subsidiary to associate Revenue recognized that was included in the unearned balance at the beginning of the year Increase due to invoicing during the year, excluding amounts recognized as revenue during the year Exchange differences on translating the financial statements of foreign operations
-
(146) (422)
(410)
562
546
11
54
Balance at the end of the year
1,031
868
Reconciliation of revenue recognised with the contracted price is as follows:
Contracted price
22,221
20,056
Reductions towards variable consideration components
(258)
(202)
Revenue recognized
21,963
19,854
Note : Variable consideration includes volume discount / service credit to customers.
Derecognition of liability on account of change of relationship of subsidiary entity to associate entity (Refer note 37)
-
-
-
(10)
28 Employee Benefits The Group contributes to the following post-employment defined contribution plan and defined benefit plans in India. (a) Defined contribution plan The Group entities in India have a defined contribution plan in respect of provident fund. Contributions are made to Employee's provident fund organisation which is the provident fund authority 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 Group is limited to the amount contributed and it has neither further contractual nor any constructive obligation.
Interest cost
29
2 8
21
3
Current service cost
173
127
13
Transfer in/(out) Benefits paid^
20
(20)
-
-
(33)
(0)
(33)
(3)
Remeasurement recognized in other compre- hensive income due to Actuarial loss/(gain) arising from change in financial assumptions^ Actuarial loss/(gain) arising on account of experience changes^
-
(26)
(0)
(15)
3
6
(5)
(24)
0
(in Rupees million)
Actuarial loss arising on account of demographical assumptions^
1
0
11
1
Year ended March 31, 2024
Year ended March 31, 2023
Particulars
Present value of obligation at the end of the year
553
32
383
47
Employer's contribution to provident fund
229
182
Included in 'Contribution to provident funds' under employee benefits expense (Refer Note 23)
*The Group has invested the amounts in pension fund with Life insurance corporation of India. ^Amount less than C 1 million (b) The amounts recognised in the consolidated balance sheet and movements in the fair value of plan assets over the year are as follows : (in Rupees million)
(b) Compensated absences Liability under Compensated absences pertains to leave balances in subsidiary company and is disclosed under current provisions.
(c) Defined benefit plans Gratuity:
As at March 31, 2024
As at March 31, 2023
Change in the fair value of plan assets
The Group entities in India provide for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees 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 with respect to Parent Company.
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 63
15 84
Contributions made by the Company
Fair value of plan assets at the end of the year
396
311
228
229
Fractal Analytics Limited | Annual Report 2023-24
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