NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 30. PROVISIONS (CONT'D) (a) Post-employment benefit obligations The Group 2025 2024 RM RM At beginning of year 18,731,306 18,784,548 Amounts recognised in profit or loss (Note 6): Current service costs 3,798,987 3,810,985 Interest on obligation 1,149,764 1,154,509 4,948,751 4,965,494 Amounts recognised in other comprehensive income: Remeasurement gains (227,254) (1,087,745) Payment during the financial year (2,348,898) (1,694,113) Effect of movements in exchange rate (1,485,994) (2,236,878) At end of year 19,617,911 18,731,306 Two subsidiaries of the Company in Indonesia operate unfunded defined benefit schemes, as required under the Labour Law of the Republic of Indonesia. The provision is determined based on estimation of amount of benefits that employees have earned in return for their service in the current and prior years. The defined benefit obligation was determined based on actuarial valuations prepared by an independent actuary using the projected unit credit method. The defined benefit schemes expose the Group to actuarial risks, such as longevity risk and interest rate risk. The amount recognised in the consolidated statements of financial position is determined as follows: The Group 2025 2024 RM RM Present value of obligations 19,617,911 18,731,306 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 263 ANNUAL REPORT 2025 MKH BERHAD
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