ICICI Bank 2010 Annual Report Download - page 158

F78
schedules
forming part of the Consolidated Accounts (Contd.)
7. Staff retirement benefits
Pension
The following table sets forth, for the year indicated, reconciliation of opening and closing balance of the present value of
the defined benefit obligation for pension benefits of the Group.
Rupees in million
Particulars
Pension
Year ended
March 31, 2010 Year ended March 31, 2009
Opening obligations .......................................................................................... 1,932.2 1,678.1
Service cost ......................................................................................................... 51.8 62.5
Interest cost ........................................................................................................ 134.5 146.6
Actuarial (gain)/loss ............................................................................................. (32.1) 484.8
Liabilities extinguished on settlement ................................................................ (287.7) (364.2)
Benefits paid ....................................................................................................... (50.0) (75.6)
Obligations at the end of the year ................................................................... 1,748.7 1,932.2
Opening plan assets, at fair value .................................................................... 2,145.3 1,490.1
Expected return on plan assets .......................................................................... 169.9 117.4
Actuarial gain/(loss) ............................................................................................. (130.7) 144.8
Assets distributed on settlement ....................................................................... (322.6) (395.8)
Contributions ....................................................................................................... 28.0 864.4
Benefits paid ....................................................................................................... (50.0) (75.6)
Closing plan assets, at fair value ...................................................................... 1,839.9 2,145.3
Fair value of plan assets at the end of the year .................................................. 1,839.9 2,145.3
Present value of the defined benefit obligations at the end of the year ............ 1,748.7 1,932.2
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) ......................................... 7.7 51.2
Asset/(liability) .................................................................................................. 83.5 161.9
Cost for the year
Service cost ......................................................................................................... 51.8 62.5
Interest cost ........................................................................................................ 134.5 146.6
Expected return on plan assets .......................................................................... (169.9) (117.4)
Actuarial (gain)/loss ............................................................................................. 98.6 340.0
Curtailments & settlements (gain)/loss .............................................................. 34.9 31.6
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’....................... (43.5) 51.2
Net cost .............................................................................................................. 106.4 514.5
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 .................................................................. 1,839.9 2,145.3 1,490.1 988.5
Defined benefit obligations ......................................... 1,748.7 1,932.2 1,678.1 1,029.4
Amount not recognised as an asset (limit in
para 59(b) of AS 15 on ‘employee benefits’ ............... 7.7 51.2 — —
Surplus/(deficit) ........................................................... 83.5 161.9 (188.0) (40.9)
Experience adjustment on plan assets ....................... (130.7) 144.8 (117.9) (110.1)
Experience adjustment on plan liabilities ................... 196.9 6.6 (121.9) 32.8