Amal Ltd | Annual Report 2024-25 Amal Ltd 188 iv) Concentration risk Plan is having a concentration risk as all the assets are invested with the insurance companies and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. It has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment will not have a material impact on the overall level of assets. A large portion of assets consists of insurance funds; it also invests in corporate bonds and special deposit schemes. The plan asset mix is in compliance with the requirements of the respective local regulations. Expected contributions to post-employment benefit plans for the year ending March 31, 2026, are ` 10.06 lakh. The weighted average duration of the defined benefit obligation is 10 years (2023-24: 07 years). The expected maturity analysis of gratuity is as follows: (` lakh) Particulars Less than a year Between 1 - 2 years Between 2 - 5years Over 5 years Total Expected defined benefit obligation (gratuity) As at March 31, 2025 0.53 0.70 5.04 44.88 51.15 As at March 31, 2024 1.69 1.83 6.79 28.21 38.52 b) Other long-term benefits Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on separation as per the policy of the Group. Valuation in respect of leave encashment has been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions: (` lakh) Expenses recognised for the year ended on March 31, 2025 (included in Note 24) 2024-25 2023-24 Present value of unfunded obligations 19.61 17.34 - Current 1.86 2.26 - Non-current 17.75 15.08 Expense recognised in the Consolidated Statement of Profit and Loss 8.32 3.10 Discount rate 6.71% 7.19% Salary escalation rate 10.07% 10.36% Note 28.5 Employee benefit obligations (continued)
RkJQdWJsaXNoZXIy MjA2MDI2