ICICI Bank 2010 Annual Report Download - page 159

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F79
schedules
forming part of the Consolidated Accounts (Contd.)
Gratuity
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 gratuity benefits of the Group.
Rupees in million
Particulars
Gratuity
Year ended
March 31, 2010 Year ended
March 31, 2009
Defined benefit obligation liability
Opening obligations .......................................................................................... 2,813.8 2,287.2
Add: Addition for exchange fluctuation on opening obligation ......................... (4.8) 6.4
Add: Addition due to amalgamation ................................................................... — 0.9
Service cost ......................................................................................................... 440.8 480.6
Interest cost ........................................................................................................ 212.5 231.8
Actuarial (gain)/loss ............................................................................................. (230.6) 96.7
Past service cost ................................................................................................. 98.6 13.2
Transitional obligation/(asset) ............................................................................. ——
Liability assumed on acquisition/(settled on divestiture) ................................... 11.0 18.1
Benefits paid ....................................................................................................... (251.7) (321.1)
Obligation at end of year .................................................................................. 3,089.6 2,813.8
Opening plan assets, at fair value .................................................................... 2,521.7 1,712.6
Expected return on plan assets .......................................................................... 209.7 146.1
Actuarial gain/(loss) ............................................................................................. 194.8 (149.3)
Contributions ....................................................................................................... 378.0 1,115.3
Asset acquired on acquisition/(distributed on divestiture) ................................. 20.7 18.1
Benefits paid ....................................................................................................... (251.7) (321.1)
Closing plan assets, at fair value ...................................................................... 3,073.2 2,521.7
Fair value of plan assets at the end of the year .................................................. 3,073.2 2,521.7
Present value of the defined benefit obligations at the end of the year ............ 3,089.6 2,813.8
Unrecognised past service cost ......................................................................... 40.5 15.3
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) .......................................... 47.9 7.9
Asset/(liability)................................................................................................... (23.8) (284.7)
Cost for the year
Service cost ......................................................................................................... 440.8 480.6
Interest cost ........................................................................................................ 212.5 231.8
Expected return on plan assets .......................................................................... (209.7) (146.1)
Actuarial (gain)/loss ............................................................................................. (425.4) 246.0
Past service cost ................................................................................................. 73.3 13.6
Losses/(gains) on “Acquisition/Divestiture” ........................................................ (2.2) —
Exchange fluctuation loss/(gain) ......................................................................... (4.8) 6.4
Transitional obligation/(asset) ............................................................................. ——
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’....................... 40.0 7.9
Net cost .............................................................................................................. 124.5 840.2
Investment details of plan assets
Majority of the plan assets are invested in Government securities and corporate bonds.
Assumptions
Interest rate ......................................................................................................... 6.10% – 8.35% 5.50% – 7.55%
Salary escalation rate .......................................................................................... 6.00% – 20.00% 6.00% – 20.00%
Estimated rate of return on plan assets ............................................................. 7.50% – 8.00% 7.50% – 8.00%