CFSL Integrated Report 2025

207

Introduction

Group Overview

Leadership

Strategy & Performance

Explanatory Notes 30 September 2025

26. POST EMPLOYMENT BENEFIT LIABILITIES (CONTINUED)

GROUP

COMPANY

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m

Sep-24 MUR m

Principal actuarial assumptions 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

65

65

65

65

Average retirement age (ARA)

(d) Other long term employee benefit plan The reconciliation of the opening balances to the closing balances for the net defined benefit liability is as follows: At 1 October

11.2

11.2

9.3 1.3 0.3

9.3 1.3 0.3

2.4 0.3 0.2

2.4 0.3 0.2

Current service cost Interest expense Past service cost Contributions paid

– –

– –

(4.5) (2.6) (0.2)

(4.5) (2.6) (0.2)

0.3

0.3

Liability experience (gain)/loss

–

–

Liability gain due to change in financial assumptions

6.8

6.8

11.2

11.2

At 30 September

Amount recognised in profit or loss and other comprehensive income are as follows: Current service cost

2.4 0.2 2.6 0.3 2.9

2.4 0.2 2.6 0.3 2.9

1.3

1.3

–

–

Past service cost

1.3 0.3 1.6

1.3 0.3 1.6

Service cost

Net interest on net defined benefit liability

Components of amount recognised in profit or loss

Remeasurement components Liability experience (gain)/loss

(2.6) (0.2) (2.8)

(2.6) (0.2) (2.8)

0.3

0.3

–

–

Liability gain due to change in financial assumptions

0.3 1.9

0.3 1.9

At 30 September

0.1

0.1

Total profit or loss charge

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 1.5 years. - Expected employer contribution for the next year is MUR3.3m. GROUP

COMPANY

Sep-25

Sep-25

Sep-24

Sep-24

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

4.5% 4.2%

4.5% 4.2%

2.9% 4.2%

2.9% 4.2%

Rate of salary increases

65

65

65

65

Average retirement age (ARA)

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

0.1 0.1 0.1 0.1

0.1 0.1 0.1 0.1

0.1 0.1 0.1 0.1

0.1 0.1 0.1

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

0.1 The liability experience gain of MUR2.6m is mainly due the release in liabilities in respect of leavers and employees taking up their vacation leave entitlement during the year. This gain is partly offset by a loss due to actual average salary increases being higher than expected over the past year. The liability gain due to the change in financial assumptions of MUR0.2m is due to the increase in the pre-retirement discount rate from 5.1% pa in 2024 to 5.7% pa in 2025.