ICICI Bank 2014 Annual Report Download - page 132

F44
37. Deferred tax
At March 31, 2014, the Bank has recorded net deferred tax asset of ` 7,468.6 million (March 31, 2013: ` 24,793.0 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, 2014
At
March 31, 2013
Deferred tax asset
Provision for bad and doubtful debts .................................................................. 27,621.5 27,146.3
Capital loss ............................................................................................................ 49.6 63.1
Others ................................................................................................................... 2,196.7 2,265.4
Total deferred tax asset ....................................................................................... 29,867.8 29,474.8
Deferred tax liability
Special Reserve deduction1 ................................................................................. 17,234.9 —
Depreciation on fixed assets ................................................................................ 5,172.3 4,682.5
Total deferred tax liability ................................................................................... 22,407.3 4,682.5
Deferred tax asset/(liability) pertaining to foreign branches .............................. 8.1 0.7
Total net deferred tax asset/(liability) ................................................................ 7,468.6 24,793.0
1. The Bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of
the Income Tax Act, 1961. The Reserve Bank of India, through its circular dated December 20, 2013, advised banks to create
deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI
guidelines, the Bank has created DTL of ` 14,192.3 million on Special Reserve outstanding at March 31, 2013, by reducing the
reserves. Further, the tax expense for the year ended March 31, 2014 is higher by ` 3,042.6 million due to creation of DTL on
amount appropriated to Special Reserve for the year ended March 31, 2014.
38. Dividend distribution tax
Dividend received from Indian subsidiaries, on which dividend distribution tax has been paid by the Indian subsidiaries
and dividend received from offshore subsidiaries, on which tax has been paid under section 115BBD of the Income Tax
Act, 1961, has been reduced from dividend to be distributed by the Bank for the purpose of computation of dividend
distribution tax as per section 115-O of the Income Tax Act, 1961.
39. 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 Limited, ICICI Lombard General Insurance Company Limited, ICICI Prudential Asset Management Company
Limited, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited,
ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI
Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust
Limited and ICICI Prudential Pension Funds Management Company Limited.
Associates/joint ventures/other related entities
ICICI Equity Fund1, ICICI Eco-net Internet and Technology Fund1 (up to December 31, 2013), ICICI Emerging Sectors Fund1 (up
to December 31, 2013), ICICI Strategic Investments Fund1, ICICI Kinfra Limited1, FINO PayTech Limited, TCW/ICICI Investment
Partners Limited (up to June 30, 2013), I-Process Services (India) Private Limited, NIIT Institute of Finance, Banking and Insurance
Training Limited, ICICI Venture Value Fund1 (up to September 30, 2013), Comm Trade Services Limited, ICICI Foundation for
Inclusive Growth, I-Ven Biotech Limited1, Rainbow Fund (up to December 31, 2013), ICICI Merchant Services Private Limited,
Mewar Aanchalik Gramin Bank and India Infradebt Limited2.
1. Entities consolidated as per Accounting Standard (AS) 21 on ‘Consolidated Financial Statements’.
2. This entity was incorporated and identified as a related party during the three months ended December 31, 2012.
Key management personnel
Chanda Kochhar, N. S. Kannan, K. Ramkumar, Rajiv Sabharwal.
forming part of the Accounts (Contd.)
schedules