ICICI Bank 2011 Annual Report Download - page 161

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F83
forming part of the Consolidated Accounts (Contd.)
Gratuity
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for gratuity benefits of the Group.
Particulars
Gratuity
Year ended
March 31, 2011
Year ended
March 31, 2010
Defined benefit obligation liability
Opening obligations ............................................................................................... 3,089.6 2,813.8
Add: Adjustment for exchange fluctuation on opening obligation ....................... 0.2 (4.8)
Adjusted opening obligations ................................................................................. 3,089.8 2,809.0
Service cost ............................................................................................................. 460.1 440.8
Interest cost ............................................................................................................. 391.9 212.5
Actuarial (gain)/loss ................................................................................................. (375.7) (230.6)
Past service cost ...................................................................................................... 10.2 98.6
Addition due to amalgamation ................................................................................ 2,773.1 –
Liability assumed on acquisition/(settled on divestiture) ....................................... 3.7 11.0
Benefits paid ............................................................................................................ (409.7) (251.7)
Obligations at the end of year ............................................................................... 5,943.4 3,089.6
Opening plan assets, at fair value ......................................................................... 3,073.1 2,521.7
Expected return on plan assets ............................................................................... 278.9 209.7
Actuarial gain/(loss) ................................................................................................. (90.5) 194.8
Addition due to amalgamation ................................................................................ 803.0 –
Contributions .......................................................................................................... 2,190.5 378.0
Asset acquired on acquisition/(distributed on divestiture) .................................... 10.5 20.7
Benefits paid ............................................................................................................ (409.7) (251.7)
Closing plan assets, at fair value ........................................................................... 5,855.8 3,073.2
Fair value of plan assets at the end of the year ...................................................... 5,855.8 3,073.2
Present value of the defined benefit obligations at the end of the year ................ 5,943.4 3,089.6
Unrecognised past service cost .............................................................................. 25.5 40.5
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) ............................................. 4.9 47.9
Asset/(liability) ........................................................................................................ (67.1) (23.8)
Cost for the year
Service cost ............................................................................................................. 460.1 440.8
Interest cost ............................................................................................................. 391.9 212.5
Expected return on plan assets ............................................................................... (278.9) (209.7)
Actuarial (gain)/loss ................................................................................................. (285.2) (425.4)
Past service cost ...................................................................................................... 25.2 73.3
Losses/(gains) on “Acquisition/Divestiture” ............................................................. (7.7) (2.2)
Exchange fluctuation loss/(gain) .............................................................................. 0.2 (4.8)
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’ ........................... (43.0) 40.0
Net cost .................................................................................................................... 262.7 124.5
Investment details of plan assets
Majority of the plan assets are invested in Government securities and corporate bonds.
Assumptions
Interest rate ................................................................................................................ 7.59%-8.30% 6.10%-8.35%
Salary escalation rate ................................................................................................ 7.00%-10.00% 6.00%-20.00%
Estimated rate of return on plan assets .................................................................... 7.50%-8.00% 7.50%-8.00%
` in million
schedules