Page 268 - DJML Annual Report 24-25

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statement March 31, 2025
(All amount in Rupees lakhs, unless otherwise stated)

a) Description of the type of the plan
Defined Benefit Plan - Gratuity
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of
total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees
of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the
Payment of Gratuity Act, 1972.
Post-Employment Benefits plan defined in a(ii) and a(iii) above typically expose the Company to actuarial risks
such as: Salary increase, Discount rate, Morality and Disability and withdrawals
a) Salary Increases :– Actual salary increases will increase the Plan’s liability. Increase in salary increase
rate assumption in future valuations will also increase the liability.

b) Discount Rate :– Reduction in discount rate in subsequent valuations can increase the plan’s liability.
c) Mortality & disability :– Actual deaths & disability cases proving lower or higher than assumed in the
valuation can impact the liabilities.

d) Withdrawals :– Actual withdrawals proving higher or lower than assumed withdrawals and change of
withdrawal rates at subsequent valuations can impact Plan’s liability.

As at As at
i) Change in benefit obligations
31st March 2025 31st March 2024
Present value of obligation as at beginning of the year 15.33 13.12
Interest Cost 1.05 0.93
Current Service Cost 3.91 4.03
Due to change in financial Assumptions 0.75 -
Due to experience adjustments (1.00) -
Benefits paid - -
Actuarial (Gain)/Loss on obligation - (2.75)
Present value of obligation as at the end of the year 20.03 15.33

ii) Fair Value of Plan Assets - -

iii) Net Assets/(Liability) (ii-i) (20.03) ( 15.33)

Annual Report 2024-25 265