ICICI Bank 2013 Annual Report Download - page 163

F85
forming part of the Consolidated Accounts (Contd.)
schedules
` in million
Gratuity
Particulars Year ended
March 31, 2013
Year ended
March 31, 2012
Actuarial (gain)/loss .............................................................................................. 362.1 (83.9)
Past service cost ................................................................................................... 0.6 —
Liability assumed on acquisition/(settled on divestiture) ................................... 10.5 23.5
Benefits paid ......................................................................................................... (789.6) (677.7)
Obligations at the end of year ............................................................................ 6,887.3 6,257.9
Opening plan assets, at fair value ...................................................................... 5,724.3 5,855.8
Expected return on plan assets ............................................................................ 427.6 438.7
Actuarial gain/(loss) .............................................................................................. 51.0 23.1
Contributions ......................................................................................................... 970.1 63.5
Asset acquired on acquisition/(distributed on divestiture) .................................. 11.5 20.9
Benefits paid .......................................................................................................... (789.6) (677.7)
Closing plan assets, at fair value ......................................................................... 6,394.9 5,724.3
Fair value of plan assets at the end of the year ................................................... 6,394.9 5,724.3
Present value of the defined benefit obligations at the end of the year ............. (6,887.3) (6,257.9)
Unrecognised past service cost............................................................................ —10.8
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) .......................................... (0.5) (1.2)
Asset/(liability)...................................................................................................... (492.9) (524.0)
Cost for the year
Service cost ........................................................................................................... 522.9 549.3
Interest cost ........................................................................................................... 519.1 497.4
Expected return on plan assets ............................................................................ (427.6) (438.7)
Actuarial (gain)/loss ............................................................................................... 311.1 (107.0)
Past service cost ................................................................................................... 11.4 14.7
Losses/(gains) on “Acquisition/Divestiture” ......................................................... —0.2
Exchange fluctuation loss/(gain) ........................................................................... 3.8 5.9
Transitional obligation/(Asset) .............................................................................. —(0.3)
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’ ........................ (0.7) (3.6)
Net cost ................................................................................................................. 940.0 517.9
Actual Return on Plan Assets ............................................................................... 478.6 461.7
Expected employer’s contribution next year ...................................................... 666.9 398.6
Investment details of plan assets
Insurer Managed Funds1 ....................................................................................... 22.06% 56.68%
Government of India securities ............................................................................ 24.28% 6.82%
Corporate Bonds .................................................................................................. 24.05% 16.21%
Special Deposit schemes ..................................................................................... 4.55% 5.08%
Equity .................................................................................................................... 11.15% 8.54%
Others ................................................................................................................... 13.91% 6.67%
Assumptions
Interest rate ............................................................................................................ 7.80%-8.23% 8.25%- 9.10%
Salary escalation rate ............................................................................................ 5.00%-10.00% 5.00%-10.00%
Estimated rate of return on plan assets ............................................................... 7.50%-8.00% 7.50%-8.00%
1. Majority of the funds are invested in Government of India securities and corporate bonds
Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return on investments
of the Fund during the estimated term of the obligations.