25 POST EMPLOYMENT BENEFIT LIABILITIES Continued (c) Other retirement benefits Continued GROUP COMPANY Sep-23 MUR m Sep-22 MUR m Sep-23 MUR m Sep-22 MUR m (iii) Movements in liability recognised in Statements of Financial Position: At 1 October 71.3 50.3 67.2 49.0 Amalgamation adjustment – – 1.9 – Current service cost 7.2 5.4 6.9 5.2 Past service cost (18.0) 7.4 (17.1) 6.7 Interest expense 3.5 2.4 3.3 2.3 Other benefits paid (0.9) (0.8) (0.9) (0.6) Liability experience loss 7.8 5.3 7.6 4.6 Liability loss due to change in financial assumptions 7.8 0.4 7.4 – Acquisition of subsidiary 0.9 – – At 30 September 78.7 71.3 76.3 67.2 (iv) Sensitivity Analysis on defined benefit obligation at end of period Increase due to 1% decrease in discount rate 25.5 23.4 24.5 21.9 Decrease due to 1% increase in discount rate 20.3 18.4 19.5 17.2 Decrease due to 1% increase in salary increase rate 22.7 20.0 21.9 19.6 Decrease due to 1% decrease in salary increase rate 18.2 15.8 17.6 15.5 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 Workers’ Rights Act 2019 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 4.6m as at 30 September 2023. (v) Future cash flows - The funding policy is to pay benefits out of the Group’s cash flow in line with the Mauritian Workers’ Rights Act 2019. - The weighted average duration of the defined benefit obligations is 16 years. - Expected employer contribution for the next year is MUR 1.9m. EXPLANATORY NOTES 30 SEPTEMBER 2023 182 CIM FINANCE ANNUAL REPORT
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