ICICI Bank 2008 Annual Report Download - page 151

F77
Particulars Year ended March 31, 2008 Year ended March 31, 2007
Pension Gratuity Pension Gratuity
Opening plans assets, at fair value 988.5 1,011.3 1,079.5 866.5
Add: Addition due to amalgamation ............................. 584.8 73.1 ——
Expected return on plan assets .................................... 115.8 84.2 78.9 85.6
Actuarial gain/(loss) ....................................................... (118.0) (4.0) (110.1) (13.6)
Assets distributed on settlement ................................. (1,145.2) — (2.3) —
Contributions ................................................................. 1,264.3 739.2 5.8 168.9
Benefits paid ................................................................. (200.1) (191.2) (63.3) (96.1)
Closing plan assets at fair value 1,490.1 1,712.6 988.5 1,011.3
Fair value of plan assets at the end of the year ............ 1,490.1 1,712.6 988.5 1,011.3
Present value of the defined benefit obligations at the
end of the year .............................................................. 1,678.1 2,288.5 1,029.4 1,352.2
Unrecognised past service cost ................................... — 15.7 ——
Asset/(liability) (188.0) (560.2) (40.9) (340.9)
Cost for the year
Service cost ................................................................... 54.0 384.9 6.7 292.3
Interest cost .................................................................. 230.7 153.6 78.0 83.2
Expected return on plan assets .................................... (115.8) (84.2) (78.9) (85.6)
Actuarial (gain)/loss ....................................................... (54.3) (28.9) 81.9 (29.8)
Past service cost ........................................................... — 99.9 ——
Transitional obligation/(Asset) ....................................... — (0.2) ——
Curtailments & settlements (gain)/loss ......................... 74.2 — ——
Net cost 188.8 525.1 87.7 260.1
Investment details of plan assets
Majority of the plan assets are invested in government securities and corporate bonds.
Assumptions
Interest rate ................................................................... 8.57% 7.50%-8.57% 8.35% 7.85% - 8.35%
Salary escalation rate .................................................... 7.00% 7.00%-20.00% 7.00% 6.00% - 20.00%
Estimated rate of return on plan assets ....................... 8.00% 7.50%-8.50% 7.50% 7.50%
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
The guidance on implementing Accounting Standard 15, Employee Benefits (revised 2005) issued by the Accounting
Standards Board (ASB) provides that exempt provident funds, which require employers to meet the interest shortfall, are in
effect defined benefit plans. The Bank’s actuary has informed that it is not practicable to actuarially determine the interest
shortfall obligation.
11. Provision for income tax
The provision for income tax (including deferred tax and fringe benefit tax) for the year ended March 31, 2008 and for the
year ended March 31, 2007 amounted to Rs. 11,066.8 million and Rs. 7,610.7 million respectively.
The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation
under Section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all international transactions are at arm’s
length so that the above legislation will not have any impact on the financial statements, particularly on the amount of tax
expense and that of provision for taxes.
forming part of the Consolidated Accounts (Contd.)
schedules
ICICI_BK_AR_2008_(F47_F92).indd 77ICICI_BK_AR_2008_(F47_F92).indd 77 6/20/08 3:32:53 PM6/20/08 3:32:53 PM