MKH Annual Report 2021

MKH Berhad 189 29. PROVISIONS (CONT’D) (a) Post-employment benefit obligations T wo subsidiaries of the Company in Indonesia operate unfunded defined benefit schemes, as required under the Labour Law of the Republic of Indonesia. The defined benefit schemes expose the Group to actuarial risks, such as longevity risk and interest rate risk. T he amount recognised in the consolidated statement of financial position is determined as follows: The Group 2021 2020 RM RM Present value of obligations 15,210,765 16,654,765 M ovement in the present value of unfunded defined benefit scheme in the current financial year is as follows: The Group 2021 2020 RM RM At beginning of year 16,654,765 14,561,360 Amounts recognised in profit or loss (Note 6): Current service costs 3,572,036 3,840,786 Interest on obligation 1,159,198 1,183,489 Past service cost (2,667,128) (1,312,880) 2,064,106 3,711,395 Amounts recognised in other comprehensive income: Remeasurement (gains)/losses (3,177,926) 144,860 Benefit paid (1,514,693) (746,241) Effect of movements in exchange rates 1,184,513 (1,016,609) At end of year 15,210,765 16,654,765 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021

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