CFSL Integrated Report 2025

FINANCIAL

204

Risk Management

Corporate Governance

Statutory Disclosures

GROUP

COMPANY

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m

Sep-24 MUR m

(iv) Movements in the fair value of plan assets over the year are as follows: At 1 October

67.0

67.0

61.0

61.0

3.6

3.6

2.7 6.9

2.7 6.9

Interest income

13.7

13.7

Employer contribution

(16.4)

(16.4)

(8.3)

(8.3)

Benefits paid

(0.3)

(0.3)

4.7

4.7

Return on plan assets excluding interest income

67.6

67.6

67.0

67.0

At 30 September

(v) Sensitivity analysis on defined benefit obligation at end of year Increase due to 1% decrease in discount rate

5.7 5.4 5.8 5.5

5.7 5.4 5.8 5.5

6.9 6.5 7.0 6.7

6.9 6.5 7.0

Decrease due to 1% increase in discount rate Increase due to 1% increase in salary increase rate Decrease due to 1% decrease in salary increase rate

6.7 The above sensitivity analysis has been carried out by recalculating the present value of obligation at end of 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 a minimum DB liability and the projected DC liabilities, the latter being MUR48.9m as at 30 September 2025. Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation. GROUP COMPANY Sep-25 % Sep-24 % Sep-25 % Sep-24 % (vi) Allocation of plan assets at end of year: Equity - local quoted 26 27 26 27 Equity - overseas quoted 31 29 31 29 Debt - local unquoted 16 19 16 19 Debt - overseas quoted 19 20 19 20 Property - local 2 2 2 2 Investment funds 4 2 4 2 Cash and other 2 1 2 1 100 100 100 100 (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 MUR10m. - Weighted average duration of the defined benefit obligations based on a minimum defined benefit liability is 4 years. GROUP COMPANY

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m

Sep-24 MUR m

(viii) Principal assumptions used at end of year: Discount rate(pre-retirement)

5.7% 3.1% 4.2%

5.7% 3.1% 4.2%

5.1% 3.0% 4.2%

5.1% 3.0% 4.2%

Discount rate(post-retirement)

Rate of salary increases

60

60

60

60

Average retirement age (ARA) Average life expectancy for: - Male at ARA

19.5 years 19.5 years 19.5 years 19.5 years 24.2 years 24.2 years 24.2 years 24.2 years

- Female at ARA

Comments on the results: The liability experience loss of MUR3.4m is mainly due to the actual average salary increases being higher than expected 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 and growth of members’ PMA being higher than anticipated over the past year. The liability gain due to the change in financial assumptions of MUR5.1m is due to the increase in the pre-retirement discount rate from 5.1% pa in 2024 to 5.7% pa in 2025 and the increase in the net post-retirement discount rate from 3.0% pa in 2024 to 3.1% pa in 2025.