Arohan Financial Services Limited | Annual Report 2021-22

Financials | 185 Annual Report | 2021-2022 Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March, 2022 (Contd.) (All amounts in ` lakhs unless otherwise stated) Note 37: Employee benefits (Contd.) B) Defined benefit plans (Contd.) (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: (vi) Actuarial assumptions Particulars As at 31 March 2022 As at 31 March 2021 Present value of defined benefit obligation as at the beginning of the year 1,375.75 999.05 Current service cost 241.30 184.08 Interest cost 86.54 62.78 Benefits paid (129.07) (36.30) Actuarial loss/(gain) on obligation Actuarial (gain)/loss on arising from change in financial assumption (114.46) (43.64) Actuarial loss on arising from experience adjustment 343.13 209.78 Present value of defined benefit obligation as at the end of the year 1,803.19 1,375.75 Particulars As at 31 March 2022 As at 31 March 2021 Funds managed by LIC of India 100% 100% Particulars As at 31 March 2022 As at 31 March 2021 Fair value of plan assets at beginning of the year 424.73 209.40 Interest income on plan assets 40.36 19.66 Employer's contribution 502.67 231.97 Benefits paid (129.07) (36.30) Expected return on plan assets 5.25 - Fair value of plan assets at the end of the year 843.94 424.73 Particulars As at 31 March 2022 As at 31 March 2021 Discounting rate 7.00% 6.60% 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 (years) 16 16 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.