Arohan Financial Services Limited | Annual Report 2022-23

159 | Annual Report | 2022-2023 Note 37: Employee benefits (Contd.) B) Defined benefit plans (Contd.) (vii) Sensitivity analysis for gratuity liability 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: Sensitivities due tomortality 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 As at 31 March 2023 As at 31 March 2022 Impact of the change in discount rate Present value of obligation at the end of the year - Impact due to increase of 1% (311.08) (244.52) - Impact due to decrease of 1% 389.71 307.35 Impact of the change in salary increase Present value of obligation at the end of the year - Impact due to increase of 1% 382.68 301.17 - Impact due to decrease of 1% (311.72) (244.62) (viii) Maturity profile of defined benefit obligation (discounted) Particulars As at 31 March 2023 As at 31 March 2022 Year 0 to 1 year 286.70 192.49 1 to 2 year 131.69 146.47 2 to 3 year 209.50 96.26 3 to 4 year 85.50 176.82 4 to 5 year 116.51 70.69 5 year onwards 846.18 660.47 Total 1,676.08 1,343.20 (b) Pension Fund The Company has a defined benefit pension plan. Family members of eligible deceased employee is entitled to pension as per the provisions of the Pension scheme. The liability of pension is recognized on the basis of actuarial valuation. Risks associated with plan provisions Salary increases Actual salary increases will result in increase in the Plan’s liability. Increase in salary rate assumption in future valuations will also increase the liability. Discount rate Reduction in discount rate in subsequent valuations can increase the plan’s liability. Mortality & disability Actual deaths cases proving lower or higher than assumed in the valuation can impact the liabilities. Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability. 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)