CFSL Integrated Report 2025

FINANCIAL

206

Risk Management

Corporate Governance

Statutory Disclosures

Other retirement benefits Other post retirement benefits comprise mainly of gratuity on retirement payable under the Mauritian Workers’ Rights Act 2019 and other benefits. Other retirement benefits comprise full and residual retirement gratuities. GROUP COMPANY

(c)

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m

Sep-24 MUR m

(i) Amounts recognised in the Statements of Financial Position are as follows: Present value of unfunded obligation

104.4 104.4

103.7 103.7

91.6 91.6

90.8 90.8

Liability in the Statements of Financial Position

(ii) Amounts recognised in profit or loss and other comprehensive income are as follows: Current service cost

8.7 0.3 9.0 4.6

8.6 0.6 9.2 4.6

8.8

8.6 1.8

–

Past service cost

8.8 3.5

10.4

Service cost

3.4

Net interest on net defined benefit liability

13.6 17.4

13.8 17.1

Components of amount recognised in profit or loss

12.3 19.5

13.8 19.3

Liability experience loss

(15.6)

(15.4)

(15.7)

(15.4)

Liability gain due to change in financial assumptions

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

1.8

1.7

3.8

3.9

91.6

90.8

78.7

76.3

8.7 0.3 4.6

8.6 0.6 4.6

8.8

8.6 1.8 3.4

Current service cost Past service cost Interest expense Other benefits paid

–

3.5

(2.6)

(2.6)

(3.2)

(3.2)

17.4

17.1

19.5

19.3

Liability experience loss

(15.6)

(15.4)

(15.7)

(15.4)

Liability gain due to change in financial assumptions

104.4

103.7

At 30 September

91.6

90.8

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

26.3 21.1 27.3 22.0

26.0 20.9 27.1 21.8

24.4 19.5 24.7 20.0

24.1 19.2 24.4

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

19.8 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 liablilities 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 MUR242.2m as at 30 September 2025 for RPF members and MUR3.6m for Super Fund members for the Company and; MUR244.1m for RPF members and MUR3.6m for Super Fund members for the Group . Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation. The liability experience loss of MUR17.1m is mainly due to the actual average remuneration increases being higher than expected over the past year, partly offset by a gain due to leavers and growth of members' PMA being higher than expected over the last year. The liability gain due to the change in financial assumptions of MUR15.4m 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. 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 14 years for the Company and 18 years for the Group. - Expected employer contribution for the next year is MUR4.0m.