168 C I M F I N A N C I A L S E R V I C E S L T D 25. POST-EMPLOYMENT BENEFIT LIABILITIES (CONT’D) GROUP COMPANY Sep-21 MUR m Sep-20 MUR m Sep-21 MUR m Sep-20 MUR m (a) Pension benefits (cont’d) (iii) Movements in the defined benefit obligations over the year are as follows: At 1 October 99.0 46.6 - - Amalgamation adjustment - - 99.0 - Current service cost 3.5 1.9 3.5 - Interest expense 2.7 3.0 2.7 - Liability experience loss 4.9 3.8 4.9 - Liability (gain)/loss due to change in financial assumptions (15.0) 43.7 (15.0) - At 30 September 95.1 99.0 95.1 - (iv) Movements in the fair value of plan assets over the year are as follows: At 1 October 47.2 45.5 - - Amalgamation adjustment - - 47.2 - Interest income 1.3 3.0 1.3 - Employer contribution 2.0 1.8 2.0 - Return on plan assets excluding interest income 11.1 (3.1) 11.1 - At 30 September 61.6 47.2 61.6 - (v) S ensitivity analysis on defined benefit obligation at end of year Increase due to 1% decrease in discount rate 30.3 33.6 30.3 - Decrease due to 1% increase in discount rate 24.3 26.5 24.3 - GROUP COMPANY Sep-21 % Sep-20 % Sep-21 % Sep-20 % (vi) Allocation of plan assets at end of year: Equity - local quoted 32 25 32 n/a Equity - overseas quoted 27 29 27 n/a Debt - local unquoted 17 7 17 n/a Debt - overseas quoted 12 27 12 n/a Property - local 2 2 2 n/a Investment funds 2 - 2 n/a Cash and other 8 10 8 n/a 100 100 100 n/a 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 64.3m as at 30 September 2021. 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. The defined benefit pension plan exposes the Group to actuarial risks such as longevity risk, currency risk, interest rate risk and market risk. (vii) Future cash flows - 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 2022 are MUR 2.0m. - The average duration of the defined benefit obligations ranges is 6 years. Explanatory Notes 30 SEPTEMBER 2021 E x p l a n a t o r y N o t e s
RkJQdWJsaXNoZXIy MzQ3MjQ5