ICICI Bank 2012 Annual Report Download - page 163

F85
forming part of the Consolidated Accounts (Contd.)
schedules
Assumptions
Particulars Year ended
March 31, 2012
Discount rate for the term of the obligation .......................................................................................... 8.25%-8.30%
Average historic yield on the investment portfolio .............................................................................. 8.34%-8.97%
Discount rate for the remaining term to maturity of the investment portfolio .................................... 8.55%
Expected investment return ................................................................................................................... 8.09%-8.67%
Guaranteed rate of return ...................................................................................................................... 8.25%
The Group has contributed ` 1,558.2 million to provident fund for the year ended March 31, 2012 (March 31, 2011:
` 1,635.6 million), which includes compulsory contribution made towards employee pension scheme under Employees
Provident Fund and Miscellaneous Provisions Act, 1952.
9. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2012 amounted to ` 27,428.6 million
(March 31, 2011: ` 20,684.9 million).
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 so that the above legislation will not have material impact on the financial statements.
10. Deferred tax
At March 31, 2012 the Group has recorded net deferred tax asset of ` 28,033.7 million (March 31, 2011: ` 29,936.7
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
Particulars At
March 31, 2012
At
March 31, 2011
Deferred tax asset
Provision for bad and doubtful debts ................................................................. 28,072.1 29,506.7
Capital loss ........................................................................................................... 79.5 —
Others .................................................................................................................. 3,853.9 4,972.1
Total deferred tax asset ...................................................................................... 32,005.5 34,478.8
Deferred tax liability
Depreciation on fixed assets ............................................................................... 4,331.8 4,496.2
Others .................................................................................................................. 47.8 63.6
Total deferred tax liability .................................................................................. 4,379.6 4,559.8
Add: Net deferred tax asset/(liability) pertaining to foreign branches/
foreign subsidiaries ............................................................................................ 407.8 17.7
Total net deferred tax asset/(liability) ............................................................... 28,033.7 29,936.7
At March 31, 2012, ICICI Prudential Life Insurance Company has created deferred tax asset on carry forward unabsorbed
losses amounting to ` 860.3 million (March 31, 2011: ` 1,330.8 million) which can be set off against future taxable
income. ICICI Lombard General Insurance Company has created deferred tax asset on carry forward unabsorbed losses
amounting to Nil (March 31, 2011: ` 305.8 million).