ICICI Bank 2010 Annual Report Download - page 109

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F29
Particulars Year ended
March 31, 2010 Year ended
March 31, 2009
Opening plan assets, at fair value .................................................................... 2,272.1 1,506.7
Expected return on plan assets .......................................................................... 186.9 128.5
Actuarial gain/(loss) ............................................................................................. 168.8 (118.0)
Contributions ....................................................................................................... 45.2 1,052.7
Assets acquired on acquisition/(distributed on divestiture) ............................... —(28.8)
Benefits paid ....................................................................................................... (165.5) (269.0)
Closing plan assets, at fair value ...................................................................... 2,507.5 2,272.1
Fair value of plan assets at the end of the year .................................................. 2,507.5 2,272.1
Present value of the defined benefit obligations at the end of the year ............ 2,310.5 2,195.7
Amount not recognised as an asset (limit in Para 59(b)) .................................... 47.9 7.9
Asset/(liability)................................................................................................... 149.1 68.5
Cost for the year
Service cost ......................................................................................................... 276.9 321.6
Interest cost ........................................................................................................ 161.5 183.9
Expected return on plan assets .......................................................................... (186.9) (128.5)
Actuarial (gain)/loss ............................................................................................. (313.7) 258.3
Exchange fluctuation loss/(gain) ......................................................................... (4.8) 6.4
Transitional obligation/(asset) ............................................................................. ——
Effect of the limit in para 59(b) ........................................................................... 40.0 7.9
Net cost .............................................................................................................. (27.0) 649.6
Investment details of plan assets
Majority of the plan assets are invested in Government securities and corporate bonds.
Assumptions
Interest rate ......................................................................................................... 7.75% 6.85%
Salary escalation rate .......................................................................................... 7.00% 7.00%
Estimated rate of return on plan assets ............................................................. 8.00% 8.00%
Experience adjustment
Rupees in million
Particulars Year ended
March 31,
2010
Year ended
March 31,
2009
Year ended
March 31,
2008
Year ended
March 31,
2007
Plan assets ............................................................................. 2,507.5 2,272.1 1,506.7 891.7
Defined benefit obligations .................................................... 2,310.5 2,195.7 1,840.4 1,142.1
Amount not recognised as an asset (limit in para 59(b)) ....... 47.9 7.9——
Surplus/(deficit) ...................................................................... 149.1 68.5 (333.7) (250.4)
Experience adjustment on plan assets .................................. 168.8 (118.0) (24.8) (18.0)
Experience adjustment on plan liabilities .............................. (0.8) (4.1) 14.0 38.1
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.
schedules
forming part of the Accounts (Contd.)