CIM FINANCE. INTEGRATED REPORT 2022 | 185 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 (c) Other retirement benefits (cont’d) (iii) Movements in liability recognised in Statements of Financial Position: At 1 October 50.3 62.0 49.0 - Amalgamation adjustment - - - 59.9 Current service cost 5.4 4.8 5.2 4.6 Past service cost 7.4 - 6.7 - Interest expense 2.4 1.7 2.3 1.6 Other benefits paid (0.8) (0.6) (0.6) (0.6) Liability experience loss/(gain) 5.3 (15.9) 4.6 (15.0) Liability loss/(gain) due to change in financial assumptions 0.4 (1.7) - (1.5) Effect of acquisition of subsidiary (note 36) 0.9 - - - At 30 September 71.3 50.3 67.2 49.0 (iv) S ensitivity Analysis on defined benefit obligation at end of period - Increase due to 1% decrease in discount rate 23.4 18.3 21.9 17.3 Decrease due to 1% increase in discount rate 18.4 14.4 17.2 13.6 Decrease due to 0.5% increase in discount rate 20.0 n/a 19.6 n/a Increase due to 0.3% decrease in discount rate 15.8 n/a 15.5 n/a GROUP COMPANY Sep-22 MUR m Sep-21 MUR m Sep-22 MUR m Sep-21 MUR m (vi) Principal actuarial assumptions at end of year: Discount rate 4.9% 4.5% 4.9% 4.5% Future salary increases 4.3% 4.0% 4.3% 4.0% Future pension increases 2.0% 1.0% 2.0% 1.0% Average retirement age (ARA) 65 65 65 65 Average life expectancy for: - Male at ARA 15.9 years 15.9 years 15.9 years 15.9 years - Female at ARA 20 years 21 years 22 years 23 years (d) Contribution to the defined contribution plans amounted to MUR12.8m (2021: MUR12.6m). 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. 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. In relation to the residual retirement gratuities, the results are particularly sensitive to a change in the discount rate due to the nature of liabilities being the difference between the pure retirement gratuities under the Mauritian Employment Rights Act 2008 and the deductions allowable, being five times the annual pension provided and half the lump sum received by the member at retirement from the pension fund with reference to the Company’s share of contributions. The latter’s amount is MUR 149.3m as at 30 September 2022. (v) Future cash flows - The funding policy is to pay benefits out of the Group’s cashflow as and when due. - The weighted average duration of the defined benefit obligations is 16 years. EXPLANATORY NOTES 30 SEPTEMBER 2022
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