ICICI Bank 2010 Annual Report Download - page 160

F80
schedules
forming part of the Consolidated Accounts (Contd.)
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 .................................................................. 3,073.2 2,521.7 1,712.6 1,011.3
Defined benefit obligations ......................................... 3,089.6 2,813.8 2,287.2 1,352.2
Amount not recognised as an asset (limit in para
59(b) of AS 15 on ‘employee benefits’) ....................... 47.9 7.9——
Surplus/(deficit) ........................................................... (64.3) (300.0) (574.6) (340.9)
Experience adjustment on plan assets ....................... 194.8 (149.3) (4.0) (13.6)
Experience adjustment on plan liabilities ................... (21.2) (22.3) (29.2) 69.5
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
The guidance on implementing AS 15 on ‘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 Group’s actuary has informed that it is not practical to actuarially determine the interest shortfall obligation.
8. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2010 amounted to Rs. 17,321.8 million
(March 31, 2009: Rs. 15,859.3 million). The levy of FBT is not applicable as the Finance (No. 2) Act, 2009 has abolished FBT
with effect from financial year 2009-10.
The Group has a comprehensive system of maintenance of information and documents required by transfer pricing legislation
under sections 92-92F of the Income Tax Act, 1961. The management is of the opinion that all international transactions
are at arm’s length and hence the above legislation does not have material impact on the financial statements.
9. Deferred tax
At March 31, 2010 the Group has recorded net deferred tax asset of Rs. 24,842.1 million (March 31, 2009: Rs. 25,184.0
million), which has been included in other assets.
The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major
items.
Rupees in million
Particulars At March 31,
2010
At
March 31,
2009
Deferred tax asset
Provision for bad and doubtful debts ................................................................. 24,052.8 22,037.1
Capital loss .......................................................................................................... —131.4
Others ................................................................................................................. 5,503.0 5,697.6
Total deferred tax asset .................................................................................... 29,555.8 27,866.1
Less: Deferred tax liability
Depreciation on fixed assets .............................................................................. 4,712.6 5,494.8
Others ................................................................................................................. 86.5 109.3
Total deferred tax liability ................................................................................. 4,799.1 5,604.1
Add: Net deferred tax asset pertaining to
foreign branches/foreign subsidiaries ............................................................. 85.4 2,922.0
Total net deferred tax asset/(liability) ............................................................. 24,842.1 25,184.0
At March 31, 2010 deferred tax assets have been created on carry forward unabsorbed losses by ICICI Prudential Life
Insurance Company amounting to Rs. 2,041.5 million (March 31, 2009: Rs. 3,180.8 million) and by ICICI Lombard General
Insurance Company amounting to Nil (March 31, 2009: Rs. 353.1 million).