GROUP COMPANY Sep-24 MUR m Sep-23 MUR m Sep-24 MUR m Sep-23 MUR m (v) Sensitivity analysis on defined benefit obligation at end of year Increase due to 1% decrease in discount rate 6.9 34.9 6.9 34.9 Decrease due to 1% increase in discount rate 6.5 28.2 6.5 28.2 Increase due to 1% increase in salary increase rate 7.0 8.3 7.0 8.3 Decrease due to 1% decrease in salary increase rate 6.7 7.9 6.7 7.9 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 66.8m as at 30 September 2024. Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation. GROUP COMPANY Sep-24 % Sep-23 % Sep-24 % Sep-23 % (vi) Allocation of plan assets at end of year: Equity - local quoted 27 30 27 30 Equity - overseas quoted 29 22 29 22 Debt - local unquoted 19 20 19 20 Debt - overseas quoted 20 16 20 16 Property - local 2 2 2 2 Investment funds 2 2 2 2 Cash and other 1 8 1 8 100 100 100 100 (vii) Future cash flows - The funding policy is to pay contributions to an external legal entity at the rate recommended by the entity’s actuary. - Expected employer contribution for the next year is MUR 15m. - Weighted average duration of the defined benefit obligations based on a minimum defined benefit liability is 4 years. GROUP COMPANY Sep-24 MUR m Sep-23 MUR m Sep-24 MUR m Sep-23 MUR m (viii) Principal assumptions used at end of year: Discount rate (pre-retirement) 5.1% 4.5% 5.1% 4.5% Discount rate (post-retirement) 3.0% 2.5% 3.0% 2.5% Rate of salary increases 4.2% 4.2% 4.2% 4.2% Average retirement age (ARA) 60 60 60 60 Average life expectancy for: - Male at ARA 19.5 years 19.5 years 19.5 years 19.5 years - Female at ARA 24.2 years 24.2 years 24.2 years 24.2years Comments on the results: The liability experience loss of MUR 9.0m is mainly due to the actual average salary increases being higher than expected over the past year and growth of members’ PMA being lower than anticipated over the past year, partly offset by a gain due to NWOG injections made in respect of retirees being lower than their past service reserves. The liability gain due to the change in financial assumptions of MUR 16.9m is due to the increase in the net pre-retirement discount rate (nominal discount rate less salary increase rate) from 0.3% p.a in 2023 to 0.9% p.a in 2024 and the increase in the net post-retirement discount rate from 2.5% p.a in 2023 to 3.0% p.a in 2024. The 'past service cost' element disclosed MUR 1.3M relates to one employee whose date of entry has been corrected in the data supplied this year. There have been no other plan amendments, curtailment or settlement during the year, except for the past service costs in respect of employee transfers between entities and data adjustments. 191 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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