Arohan Financial Services Limited | Annual Report 2022-23

| 158 Annual Report | 2022-2023 Financial 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: Particulars As at 31 March 2023 As at 31 March 2022 Present value of defined benefit obligation as at the beginning of the year 1,803.19 1,375.75 Current service cost 297.21 241.30 Interest cost 118.01 86.54 Benefits paid (234.69) (129.07) Actuarial loss/(gain) on obligation Actuarial (gain)/loss on arising from change in financial assumption (71.00) (114.46) Actuarial loss on arising from experience adjustment 421.99 343.13 Present value of defined benefit obligation as at the end of the year 2,334.71 1,803.19 (iv) Major categories of plan assets (as percentage of total plan assets): Particulars As at 31 March 2023 As at 31 March 2022 Funds managed by LIC of India 100% 100% (v) Movement in the plan assets recognised in the balance sheet is as under: Particulars As at 31 March 2023 As at 31 March 2022 Fair value of plan assets at beginning of the year 843.94 424.73 Interest income on plan assets 61.21 40.36 Employer's contribution 295.55 502.67 Benefits paid (234.69) (129.07) Expected return on plan assets - 5.25 Fair value of plan assets at the end of the year 966.01 843.94 (vi) Actuarial assumptions Particulars As at 31 March 2023 As at 31 March 2022 Discounting rate 7.20% 7.00% 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) 11 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. Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2023 (Contd.) (All amounts in ` lakhs unless otherwise stated)