25 POST EMPLOYMENT BENEFIT LIABILITIES Continued (a) Pension benefits Continued GROUP COMPANY Sep-23 MUR m Sep-22 MUR m Sep-23 MUR m Sep-22 MUR m (iv) Movements in the fair value of plan assets over the year are as follows: At 1 October 55.0 61.6 55.0 61.6 Interest income 2.8 2.4 2.8 2.4 Employer contribution 6.9 1.8 6.9 1.8 Benefits paid (3.2) (8.1) (3.2) (8.1) Return on plan assets excluding interest income (0.5) (2.7) (0.5) (2.7) At 30 September 61.0 55.0 61.0 55.0 (v) Sensitivity analysis on defined benefit obligation at end of year Increase due to 1% decrease in discount rate 34.9 32.5 34.9 32.5 Decrease due to 1% increase in discount rate 28.2 26.1 28.2 26.1 Increase due to 1% increase in salary increase rate 8.3 8.9 8.3 8.9 Increase due to 1% decrease in salary increase rate 7.9 8.4 7.9 8.4 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 69.2m as at 30 September 2023. 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. GROUP COMPANY Sep-23 % Sep-22 % Sep-23 % Sep-22 % (vi) Allocation of plan assets at end of year: Equity - local quoted 30 37 30 37 Equity - overseas quoted 22 22 22 22 Debt - local unquoted 20 18 20 18 Debt - overseas quoted 16 12 16 12 Property - local 2 2 2 2 Investment funds 2 2 2 2 Cash and other 8 7 8 7 100 100 100 100 EXPLANATORY NOTES 30 SEPTEMBER 2023 178 CIM FINANCE ANNUAL REPORT
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