CIM FINANCE. INTEGRATED REPORT 2022 | 181 25. POST EMPLOYMENT BENEFIT LIABILITIES (CONT’D) GROUP COMPANY Sep-22 MUR m Sep-21 MUR m Sep-22 MUR m Sep-21 MUR m (a) Pension benefits (cont’d) (iii) Movements in the defined benefit obligations over the year are as follows: At 1 October 95.1 99.0 95.1 - Amalgamation adjustment - - - 99.0 Current service cost 3.1 3.5 3.1 3.5 Interest expense 3.9 2.7 3.9 2.7 Other benefits paid (8.1) - (8.1) - Liability experience loss 0.3 4.9 0.3 4.9 Liability loss / (gain) due to change in financial assumptions 11.5 (15.0) 11.5 (15.0) At 30 September 105.8 95.1 105.8 95.1 (iv) Movements in the fair value of plan assets over the year are as follows: At 1 October 61.6 47.2 61.6 - Amalgamation adjustment - - - 47.2 Interest income 2.4 1.3 2.4 1.3 Employer contribution 1.8 2.0 1.8 2.0 Benefits paid (8.1) - (8.1) - Return on plan assets excluding interest income (2.7) 11.1 (2.7) 11.1 At 30 September 55.0 61.6 55.0 61.6 (v) S ensitivity analysis on defined benefit obligation at end of year Increase due to 1% decrease in discount rate 32.5 30.3 32.5 30.3 Decrease due to 1% increase in discount rate 26.1 24.3 26.1 24.3 Increase due to 1% increase in salary increase rate 8.9 9.0 8.9 9.0 Increase due to 1% decrease in salary increase rate 8.4 8.4 8.4 8.4 GROUP COMPANY Sep-22 % Sep-21 % Sep-22 % Sep-21 % (vi) Allocation of plan assets at end of year: Equity - local quoted 37 32 37 32 Equity - overseas quoted 22 27 22 27 Debt - local unquoted 18 17 18 17 Debt - overseas quoted 12 12 12 12 Property - local 2 2 2 2 Investment funds 2 2 2 2 Cash and other 7 8 7 8 100 100 100 100 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 67.5m as at 30 September 2022. 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. EXPLANATORY NOTES 30 SEPTEMBER 2022
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