Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 25. POST EMPLOYMENT BENEFIT ASSETS/LIABILITIES (CONT’D) (b) Unfunded pension schemes (cont’d) (v) Future cash flows - The funding policy is to pay benefits out of the Group’s cashflow as and when due. - Expected employer contributions to post-employment benefit plans for the year ending 30 September 2019 are MUR 6.0m. - The weighted average duration of the defined benefit obligations is 5 years. Sep-19 Sep-18 MUR m MUR m (vi) Principal actuarial assumptions at end of year: Discount rate 5.9% 6.2% Future pension increases 2.0% 2.0% Average retirement age (ARA) 60 60 Average life expectancy for: - Male at ARA 19.5 years 19.5 years - Female at ARA 24.2 years 24.2 years (c) Other retirement benefits Other retirement benefits comprise full and residual retirement gratuities. GROUP Sep-19 Sep-18 MUR m MUR m (i) Amounts recognised in the Statements of Financial Position are as follows: Present value of unfunded obligation 55.6 46.7 Liability in the Statements of Financial Position 55.6 46.7 (ii) Amounts recognised in profit or loss and other comprehensive income are as follows: Service cost: Current service cost 4.8 4.6 Past service cost (0.2) - Net interest on net defined benefit liability 2.9 2.4 Components of amount recognised in profit or loss 7.5 7.0 Liability experience loss 3.7 0.4 Liability (gain)/loss due to change in financial assumptions (2.3) 1.1 Components of amount recognised in other comprehensive income 1.4 1.5 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 139