ICICI Bank 2012 Annual Report Download - page 119

F41
38. Provisions and contingencies
The following table sets forth, for the periods indicated, the break-up of provisions and contingencies included in profit
and loss account.
` in million
Year ended
March 31, 2012
Year ended
March 31, 2011
Provisions for depreciation of investments ....................................................... 4,132.0 2,038.2
Provision towards non-performing and other assets ........................................ 9,931.8 19,769.1
Provision towards standard assets ..................................................................... ——
Provision towards income tax ............................................................................ 21,874.2 21,381.1
Deferred tax adjustment ..................................................................................... 1,446.5 (5,317.8)
Provision towards wealth tax .............................................................................. 61.0 30.0
Other provisions and contingencies................................................................... 1,766.6 1,061.1
Total provisions and contingencies ................................................................... 39,212.1 38,961.7
39. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2012 amounted to ` 23,320.7 million
(March 31, 2011: ` 16,063.3 million).
The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing
legislation under section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all international transactions
are at arm’s length so that the above legislation will not have material impact on the financial statements.
40. Deferred tax
At March 31, 2012, the Bank has recorded net deferred tax asset of ` 25,453.2 million (March 31, 2011: ` 26,900.3 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.
` in million
At
March 31, 2012
At
March 31, 2011
Deferred tax asset
Provision for bad and doubtful debts .................................................................. 27,348.8 28,944.3
Capital loss ............................................................................................................ 79.5 —
Others ................................................................................................................... 2,299.3 2,398.8
Total deferred tax asset ....................................................................................... 29,727.6 31,343.1
Deferred tax liability ............................................................................................
Depreciation on fixed assets ................................................................................ 4,275.1 4,444.1
Total deferred tax liability ................................................................................... 4,275.1 4,444.1
Deferred tax asset/(liability) pertaining to foreign branches .............................. 0.7 1.3
Total net deferred tax asset/ (liability) ............................................................... 25,453.2 26,900.3
During the year ended March 31, 2012, Bank has created deferred tax asset on carry forward capital losses, as based on its
firm plans it is virtually certain that sufficient future taxable capital gains will be available against which the loss can be set off.
41. Dividend distribution tax
For the purpose of computation of dividend distribution tax on the proposed dividend, the Bank has reduced the dividend
received from its Indian subsidiaries, which are not the subsidiaries of any other company, on which dividend distribution
tax has been paid by the subsidiaries as per the provisions of Section 115-O of the Income Tax Act, 1961.
42. Related Party Transactions
The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities,
key management personnel and relatives of key management personnel.
Subsidiaries
ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Life Insurance
Company Limited1, ICICI Lombard General Insurance Company Limited1, ICICI Prudential Asset Management Company
Limited1, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited,
forming part of the Accounts (Contd.)
schedules