Gratuity valuation report for statutory audit.
Gratuity is a future liability that depends on how long an employee stays and their future salary — you can't simply guess the amount. We coordinate with certified actuaries to deliver a scientific, defensible valuation for your auditor.
If your company has 10 or more employees, gratuity valuation is mandatory under the Payment of Gratuity Act, 1972 — and auditors require an actuarial report, not a manual estimate. The report uses the Projected Unit Credit method and typically takes under a week from the moment we receive your final data. Pricing starts from ₹13,500.
AS 15 (Revised) or Ind AS 19 — which applies to you?
If your company has 10 or more employees, the Payment of Gratuity Act, 1972 makes it a legal obligation to pay gratuity to those who complete 5 years of service. Auditors require an actuarial report to verify you've set aside enough to meet these future payouts.
| Feature | AS 15 (Revised) | Ind AS 19 |
|---|---|---|
| Applicability | Small and medium-sized unlisted companies | Listed companies and large entities with high net worth |
| Gain/loss reporting | Any change in valuation goes straight to the P&L Account | Changes go to Other Comprehensive Income (OCI) — doesn't hit net profit |
| Complexity | Standard reporting | Requires advanced sensitivity analysis and 10-year cash flow projections |
The gold standard method — Projected Unit Credit.
Our actuary uses the Projected Unit Credit (PUC) Method, the standard required by Indian accounting rules.
The current value of all future gratuity payments you are expected to make.
The cost of the gratuity "earned" by your employees during the current year.
The interest accrued on the previous year's liability.
Detailed notes on discount rates, salary growth rates, and attrition rates used in the calculation.
A simple Excel sheet — that's all we need.
The five steps we handle for you.
We simplify the complex math so you can focus on your business.
Data review
We check your employee data for inconsistencies, like missing joining dates or incorrect salary figures.
Setting assumptions
Our team helps you set realistic assumptions for salary growth and attrition based on your industry.
Calculation
The actuary applies the discount rate — usually based on government bond yields — to determine the present value.
Draft report
We share the initial numbers with you and your auditor to ensure everyone is aligned on the provisioning.
Final certification
You receive a signed actuarial certificate, ready to be attached to your audit file.
What does it cost?
The cost of the Gratuity Valuation Report starts from ₹13,500.
Usually done alongside leave encashment.
Common questions about gratuity valuation.
Is gratuity valuation mandatory for companies with fewer than 10 employees?
+How do I know if AS 15 or Ind AS 19 applies to my company?
+Why can't our internal finance team calculate this without an actuary?
+Do we need a fresh valuation every year?
+What is the cost to get the Gratuity Valuation Report?
+Ready for your gratuity valuation?
Schedule a no-obligation discovery call. We'll review your employee data and typically pair this with leave encashment.
Schedule a consultation Write to rohit@krprassociates.com