The investment properties are held through the Compagnie des Villages de Vacances de l’Isle de France Limitée (COVIFRA), a subsidiary of MCB Real Assets Ltd.
The land held under an operating lease and the buildings have been treated as investment properties and are stated at fair value.
The land is leased from the Government of Mauritius for a term expiring on 30 September 2069 and is fully reimbursed by the tenant. The investment property is categorised into Level 3 of the fair value hierarchy, the following information is relevant:
-Valuation technique: Income approach
-Significant input (s):

Observable input: Fixed rent

Unobservable input: Discount rate

-Sensitivity: An increase in discount rate used would result in a decrease in fair value, and vice versa.

(a) Goodwill

(b) Other intangible assets

The only material intangible assets for the Group are the core banking systems. The remaining useful lives range from 1 to 3 years.
For the current year, The Mauritius Commercial Bank Limited has reviewed the useful lives of fully depreciated assets and has made a reinstatement of the useful lives.

The carrying amounts of deposits are not materially different from their fair values.

(a) Other borrowed funds comprise the following:

(b) Remaining term to maturity:

Subordinated liabilities comprise the following:

Debt securities comprise the following:

These notes are quoted on the Official Market of the Stock Exchange of Mauritius Ltd and their carrying amounts are not materially different from their fair values.

(a) Staff superannuation fund

The 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.Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation. It has been determined based on a method that extrapolates the impact on net defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

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.

There was no change in the methods and assumptions used in preparing that sensitivity analysis from prior years.

The Mauritius Commercial Bank Limited sponsors a defined benefit pension plan for its staff and some staff of MCB Group Limited.The plan is self-administered and funded separately from the bank .The Mauritius Commercial Bank Limited has recognised a net defined benefit liability of Rs 300.7M, as at 30 June 2019 for the plan (2018: Rs 152.0M).

The Mauritius Commercial Bank Limited operates a final salary defined benefit pension plan for its employees.

The plan exposes the bank to normal risks associated with defined benefit pension plans such as investment, interest, longevity and salary risks.

Investment risk: The plan liability is calculated using a discount rate determined by reference to government bond yields; if the return on plan assets is below this rate, it will create a plan deficit and if it is higher, it will create a plan surplus.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this may be partially offset by an increase in the return on the plan’s debt investments and a decrease in inflationary pressures on salary and pension increases.

Longevity risk: The plan liability is calculated by reference to the best estimate for the mortality of plan participants both during and after their employment .An increase in life expectancy of the plan participants will increase the plan liability.

Salary risk: The plan liability is calculated by reference to the future projected salaries of plan participants.As such, an increase in the salary of the plan participants above the assumed rate will increase the plan liability whereas an increase below the assumed rate will decrease the liability.

The Mauritius Commercial Bank Limited has a residual obligation imposed by Employment Rights Act 2008 on top of its Defined Contribution (DC) plan. It is therefore particularly exposed to investment under-performance of the DC plan.

There has been no plan amendment, curtailment or settlement during the year.

Future cash flows
The funding policy is to pay contributions to an external legal entity at the rate recommended by the entity’s actuaries: Expected employer contribution for the next year (Rs M) : 255.4M
Weighted average duration of the defined benefit obligation : 17 years

As from 01 July 2015,The Mauritius Commercial Bank Limited has introduced a Defined Contribution Cash Balanced Scheme “DCCB” for its
employees.
Consequently, all employees joining The Mauritius Commercial Bank Limited as from that date are automatically enrolled in the new scheme. Existing employees had the choice of either remaining in the Defined Benefit Scheme or to join the new scheme.

Note: Employee benefits obligations have been provided for based on the report from Aon Hewitt Ltd.,Actuaries and Consultants.

(b) Residual retirement gratuities

The Mauritius Commercial Bank Limited has recognised a net defined liability of Rs 59.4M as at 30 June 2019 (2018: Rs 51.0) for all employees whose pension benefits are not expected to fully offset the company’s retirement gratuity obligations under the Employment Rights Act 2008 and who are therefore entitled to residual retirement gratuities under the Employment Rights Act 2008.

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. Any similar variation in the other assumptions would have shown smaller variations in the defined benefit obligation.

Future cash flows
The funding policy is to pay benefits out of the reporting entity’s cash flow as and when due.

Expected employer contribution for the next year (Rs’M): Nil
Weighted average duration of the defined benefit obligation: 22 years