CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 25. POST EMPLOYMENT BENEFIT ASSETS/LIABILITIES (CONT’D) (a) Pension benefits (cont’d) (v) Sensitivity analysis on defined benefit obligation at end of year (cont’d) The above sensitivity analysis has been carried out by recalculating the present value of obligation at the end of the period after increasing or decreasing the discount rate while leaving all other assumptions unchanged. The results are particularly sensitive to a change in the discount rate due to the nature of the liabilities being the difference between a minimum defined benefit liability and the projected defined contribution liabilities, the latter being MUR 46.7m as at 30 September 2018. Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. GROUP Sep-18 Sep-17 % % (vi) Allocation of plan assets at end of year: Equity - local quoted 26 38 Equity - overseas quoted 37 29 Debt - local unquoted 2 23 Debt - overseas quoted 27 - Property - local 3 2 Cash and other 5 8 100 100 (vii) Future cashflows - The funding policy is to pay contributions to an external legal entity at the rate recommended by the entity’s actuaries. - Expected employer contributions to post-employment benefit plans for the year ending 30 September 2019 are MUR 1.7m. - The average duration of the defined benefit obligations ranges between 5 years and 13 years. 117 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018