Arohan Annual Report FY 20-21

iii. Movement in the present value of defined benefit obligation recognised in the balance sheet is as under: iv. Major categories of plan assets (as percentage of total plan assets): v. Movement in the plan assets recognised in the balance sheet is as under: vii. Sensitivity analysis for gratuity liability: vi. Actuarial assumptions: Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2021 (Contd.) Particulars Year ended 31 March 2021 Year ended 31 March 2020 Funds managed by LIC of India 100% 100% Particulars Year ended 31 March 2021 Year ended 31 March 2020 Fair value of plan assets at beginning of the year 209.40 121.22 Current service cost 19.66 11.64 Employer's contribution 231.97 96.68 Benefits paid (36.30) (20.14) Fair value of plan assets at the end of the year 424.73 209.40 Particulars Year ended 31 March 2021 Year ended 31 March 2020 Impact of the change in discount rate Present value of obligation at the end of the year - Impact due to increase of 1 % (190.47) (138.74) - Impact due to decrease of 1 % 240.24 175.04 Impact of the change in salary increase Present value of obligation at the end of the year - Impact due to increase of 1 % 234.42 170.41 - Impact due to decrease of 1 % (189.92) (138.09) 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. Particulars Year ended 31 March 2021 Year ended 31 March 2020 Discounting rate 6.60% 6.40% Future salary increase 8.00% 8.00% Retirement age (years) 60 60 Withdrawal rate upto 5 years of service 52% 52% More than 5 years of service 1% 1% Weighted average duration 16 Years 16 Years 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. Particulars Year ended 31 March 2021 Year ended 31 March 2020 Present value of defined benefit obligation as at the beginning of the year 999.05 349.87 Current service cost 184.08 68.40 Interest cost 62.78 24.81 Benefits paid (36.30) (20.14) Actuarial loss/(gain) on obligation Actuarial (gain)/loss on arising from change in financial assumption (43.64) 408.68 Actuarial loss on arising from experience adjustment 209.78 167.43 Present value of defined benefit obligation as at the end of the year 1,375.75 999.05 Financial 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: 161