CFSL Integrated Report 2025

205

Introduction

Group Overview

Leadership

Strategy & Performance

Explanatory Notes 30 September 2025 26. POST EMPLOYMENT BENEFIT LIABILITIES (CONTINUED) (b) Unfunded pension schemes

Unfunded pension schemes comprise of pensions paid out of cash flow and relates to contribution for retired members. GROUP & COMPANY

Sep-25 MUR m

Sep-24 MUR m

(i) Amount recognised in the Statements of financial position are as follows: Present value of funded obligations

21.6 21.6

22.5 22.5

Liability in the Statements of Financial Position

(ii) Amount recognised in profit or loss and other comprehensive income are as follows: Net interest on net defined benefit liability

1.1 1.1 2.7

1.0 1.0 2.5

Components of amount recognised in profit or loss

Liability experience loss

(0.5)

(0.6)

Liability (gain)/loss due to change in financial assumptions

2.2

Components of amount recognised in other comprehensive income (iii) Movements in liability recognised in Statements of Financial Position: At 1 October

1.9

22.5

23.5

1.1

1.0

Interest expense Other benefits paid

(4.2)

(3.9)

2.7

2.5

Liability experience loss

(0.5)

(0.6)

Liability gain due to change in financial assumptions

21.6

22.5

At 30 September

Sensitivity Analysis on defined benefit obligation at end of period Increase due to 1% decrease in discount rate

0.9 0.8

0.9

Decrease due to 1% increase in discount rate 0.8 The above sensitivity analysis has been carried out by recalculating the present value of the 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. GROUP & COMPANY

Sep-25 MUR m

Sep-24 MUR m

(v) Future cash flows - The funding policy is to pay benefits out of the Group’s cashflow as and when due. - Expected employer contributions to post-employment benefit plans for the next year is MUR 4.4m. - The weighted average duration of the defined benefit obligations is 4 years. (vi) Principal actuarial assumptions at end of year: Discount rate

5.7% 5.0%

5.1% 5.0%

Future pension increases Average life expectancy for: - Male at ARA

19.5 years 19.5 years 24.2 years 24.2 years

- Female at ARA

Comments on the results: The liability experience loss of MUR2.7m is mainly due to actual mortality experience being lower than expected over the past year. The liability gain due to change in financial assumptions of MUR0.5m is mainly due to the increase in the discount rate from 5.1% p.a in 2024 to 5.7% p.a in 2025.