ICICI Bank 2014 Annual Report Download - page 130

F42
Experience adjustment
` in million
Particulars
Year ended
March 31,
2014
Year ended
March 31,
2013
Year ended
March 31,
2012
Year ended
March 31,
2011
Year ended
March 31,
2010
Plan assets ................................................................ 5,729.9 5,530.5 5,027.4 5,182.4 2,507.5
Defined benefit obligations ...................................... 5,818.5 5,643.1 5,247.2 5,082.7 2,310.5
Amount not recognised as an asset (limit in para
59(b) of AS-15 on ‘employee benefits’) ................... ———— 47.9
Surplus/(deficit) ........................................................ (88.6) (112.6) (219.8) 99.7 149.1
Experience adjustment on plan assets .................... (29.5) 34.4 20.1 (63.2) 168.8
Experience adjustment on plan liabilities ................ 217.6 153.6 44.1 79.0 (0.8)
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
Provident Fund (PF)
As there is liability towards interest rate guarantee on exempt provident fund on the basis of actuarial valuation, the Bank
has made a provision for the year ended March 31, 2014 amounting to ` 3.5 million (March 31, 2013: Nil).
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 provident fund.
` in million
Particulars Year ended
March 31, 2014
Year ended
March 31, 2013
Opening obligations .......................................................................................... 13,719.5 12,147.6
Service cost ........................................................................................................ 974.9 783.4
Interest cost ........................................................................................................ 1,096.5 1,003.8
Actuarial (gain)/loss ............................................................................................ (49.1) (26.4)
Employees contribution ..................................................................................... 1,681.4 1,380.7
Liability transferred from/to other companies .................................................. 74.8 104.8
Benefits paid ....................................................................................................... (1,804.7) (1,674.4)
Obligations at end of the year .......................................................................... 15,693.3 13,719.5
Opening plan assets .......................................................................................... 13,719.5 12,129.8
Expected return on plan assets ......................................................................... 1,194.4 1,017.2
Actuarial gain/(loss) ............................................................................................ (150.5) (22.0)
Employer contributions ..................................................................................... 974.9 783.4
Employees contributions .................................................................................. 1,681.4 1,380.7
Asset transferred from/to other companies ...................................................... 74.8 104.8
Benefits paid ....................................................................................................... (1,804.7) (1,674.4)
Closing plan assets ............................................................................................ 15,689.8 13,719.5
Plan assets at the end of the year ...................................................................... 15,689.8 13,719.5
Present value of the defined benefit obligations at the end of the year .......... 15,693.3 13,719.5
Asset/(liability) .................................................................................................. (3.5) —
Cost for the year
Service cost ........................................................................................................ 974.9 783.4
Interest cost ........................................................................................................ 1,096.5 1,003.8
Expected return on plan assets ......................................................................... (1,194.4) (1,017.2)
Actuarial (gain)/loss ............................................................................................ 101.4 (4.4)
Net cost .............................................................................................................. 978.4 765.6
Actual Return on Plan Assets............................................................................. 1,043.9 995.2
Expected employer's contribution next year .................................................... 1,041.9 838.2
Investment details of plan assets
Government of India securities .......................................................................... 38.82% 39.20%
Corporate bonds ................................................................................................ 51.72% 50.14%
Special deposit scheme ..................................................................................... 3.38% 3.87%
Others ................................................................................................................. 6.08% 6.79%
Assumption
Discount rate ...................................................................................................... 9.00% 7.95%
Expected rate of return on assets ...................................................................... 8.60% 8.45%
Discount rate for the remaining term to maturity of investments ................... 9.05% 8.05%
Average historic yield on the investment.......................................................... 8.65% 8.55%
Guaranteed rate of return .................................................................................. 8.75% 8.50%
forming part of the Accounts (Contd.)
schedules