GROUP COMPANY Sep-24 MUR m Sep-23 MUR m Sep-24 MUR m Sep-23 MUR m (i) Amount recognised in the Statements of financial position are as follows: Present value of unfunded obligation 91.6 78.7 90.8 76.4 Liability in the Statements of Financial Position 91.6 78.7 90.8 76.4 (ii) Amounts recognised in profit or loss and other comprehensive income are as follows: Current service cost 8.8 7.2 8.6 6.9 Past service cost – (18.0) 1.8 (17.1) Service cost 8.8 (10.8) 10.4 (10.2) Net interest on net defined benefit liability 3.5 3.4 3.4 3.3 Components of amount recognised in profit or loss 12.3 (7.4) 13.8 (6.9) Liability experience loss 19.5 7.8 19.3 7.6 Liability (gain)/loss due to change in financial assumptions (15.7) 7.8 (15.5) 7.4 Components of amount recognised in other comprehensive income 3.8 15.6 3.8 15.0 (iii) Movements in liability recognised in Statements of Financial Position: At 1 October 78.7 71.3 76.3 67.2 Amalgamation adjustment – – – 1.9 Current service cost 8.8 7.2 8.6 6.9 Past service cost – (18.0) 1.8 (17.1) Interest expense 3.5 3.5 3.4 3.3 Other benefits paid (3.2) (0.9) (3.2) (0.9) Liability experience loss 19.5 7.8 19.3 7.6 Liability (gain)/loss due to change in financial assumptions (15.7) 7.8 (15.5) 7.4 At 30 September 91.6 78.7 90.7 76.3 (iv) Sensitivity Analysis on defined benefit obligation at end of period Increase due to 1% decrease in discount rate 24.4 25.5 24.1 24.5 Decrease due to 1% increase in discount rate 19.5 20.3 19.2 19.5 Increase due to 1% increase in salary increase rate 24.7 22.7 24.4 21.9 Decrease due to 1% decrease in salary increase rate 20.0 18.2 19.8 17.6 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 discount rate due to the nature of the liabilities being the difference between the pure retirement gratuities under the 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 amount is MUR 188.7m as at 30 September 2024. 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 liability experience loss of MUR 19.3m is mainly due to the actual average remuneration increases being higher than expected over the past year, partly offset by a gain due to the release in liabilities in respect of leavers during the year The liability gain due to the change in financial assumptions of MUR 15.7m for the Group and MUR 15.5m for the Company is due to the increase in the net pre-retirement discount rate from 0.3% pa in 2023 to 0.9% pa in 2024 and the increase in the net post-retirement discount rate from 2.5% pa in 2023 to 3.0% pa in 2024. (v) Future cash flows - The funding policy is to pay benefits out of the Group’s cash flow as and when due - The weighted average duration of the defined benefit obligations is 15 years. - Expected employer contribution for the next year is MUR 1.1m. 193 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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