v3.26.1
Employee Benefit Plan
 3 Months Ended
Mar. 31, 2026
Employee Benefit Plan [Abstract]  
EMPLOYEE BENEFIT PLAN

NOTE 17 – EMPLOYEE BENEFIT PLAN

 

The Company’s Gratuity Plan in India provides for a lump sum payment to employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities under this plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans, are recognized and amortized over the remaining period of service of the employees.

 

The Gratuity Plan is unfunded, and the Company does not make contributions to the plan assets.

 

The benefit obligation has been measured as of March 31, 2026, and December 31, 2025. The following table sets forth the activity and the amounts recognized in the Company’s condensed consolidated financial statements at the end of the relevant periods:

 

   March 31,
2026		   December 31,
2025		 
Change in projected benefit obligation        
Projected benefit obligation as on beginning   208,571    80,833 
Service cost   18,272    59,280 
Amortisation of prior service cost   3,056    1,433 
Interest cost   3,762    5,627 
Benefits paid   
-
    
-
 
Actuarial (gain) / loss ^   (4,781)   29,553 
Prior service cost   
-
    37,823 
Effect of exchange rate changes   (9,718)   (5,978)
Projected benefit obligation at end   219,162    208,571 
Unfunded status in the end   219,162    208,571 
Unfunded amount recognized in consolidated balance sheets          
Non-current liability (included under other non-current liabilities)   197,809    188,622 
Current liability (included under accrued employee costs)   21,353    19,949 
Total accrued liability   219,162    208,571 
Accumulated benefit obligation at end   107,257    101,031 
^ During the period ended March 31, 2026 and December 31, 2025, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations.

 

Components of net periodic benefit costs recognized in condensed consolidated statements of operations and comprehensive loss and actuarial loss reclassified from accumulated other comprehensive income (“AOCI”), were as follows:

 

   March 31,
2026		   March 31,
2025		 
Service cost   18,272    9,492 
Amortization of prior service cost   3,056    
-
 
Interest cost   3,762    1,443 
Expected return on plan assets   
-
    
-
 
Amortization of actuarial loss, gross of tax   
-
    
-
 
Net gratuity cost   25,090    10,935 

 

The components of retirement benefits included in AOCI, excluding tax effects, were as follows:

 

   March 31,
2026		   March 31,
2025		 
Net actuarial (gain) / loss   (4,781)   15,838 
Amount recognized in AOCI, excluding tax effects   (4,781)   15,838 

 

The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:

 

   March 31,
2026		   December 31,
2025		 
Discount rate   7.90%   7.39%
Rate of increase in compensation levels   15.50%   15.50%
Expected long-term rate of return on plan assets per annum   
-
    
-
 

 

The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available.

 

Expected benefit payments as of March 31, 2026

 

March 31, 2026   21,351 
2027   41,796 
2028   39,742 
2029   35,152 
2030   30,253 
2031-2035   160,191