ICICI Bank 2015 Annual Report Download - page 218

Schedules
forming part of the Consolidated Accounts (Contd.)
216 Annual Report 2014-2015
Consolidated Financial Statements
5. Assets on lease
Assets taken under operating lease
The following table sets forth, for the periods indicated, the details of future rentals payable on operating leases.
` in million
Particulars At
March 31, 2015
At
March 31, 2014
Not later than one year 561.2 666.6
Later than one year and not later than five years 562.9 1,260.0
Later than five years 103.1 115.5
Total 1,227.2 2,042.1
The terms of renewal are those normally prevalent in similar agreements and there are no undue restrictions in the agreements.
6. Preference shares
Certain government securities amounting to ` 3,088.6 million at March 31, 2015 (March 31, 2014: ` 2,970.9 million)
have been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on
April 20, 2018, as per the original terms of the issue.
7. 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
Particulars Year ended
March 31, 2015
Year ended
March 31, 2014
Provision for depreciation of investments 4,128.9 1,628.8
Provision towards non-performing and other assets 36,307.6 24,818.3
Provision towards income tax
- Current 56,758.0 43,158.7
- Deferred (2,841.8) 2,885.3
Provision towards wealth tax 51.1 51.1
Other provisions and contingencies14,926.9 2,555.5
Total provisions and contingencies 99,330.7 75,097.7
1. Includes provision made towards standard assets amounting to ` 3,927.6 million (March 31, 2014: ` 1,592.0 million)
The Bank has assessed its obligations arising in the normal course of business, including pending litigations, proceedings
pending with tax authorities and other contracts including derivative and long term contracts. In accordance with
the provisions of Accounting Standard - 29 on ‘Provisions, Contingent Liabilities and Contingent Assets’, the Bank
recognises a provision for material foreseeable losses when it has a present obligation as a result of a past event and it
is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate
can be made. In cases where the available information indicates that the loss on the contingency is reasonably possible
but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made as contingent liabilities in the
financial statements. The Bank does not expect the outcome of these proceedings to have a materially adverse effect
on its financial results. For insurance contracts booked in its life insurance subsidiary, reliance has been placed on the
Appointed Actuary for actuarial valuation of liabilities for policies in force. The Appointed Actuary has confirmed that
the assumptions used in valuation of liabilities for policies in force are in accordance with the guidelines and norms
issued by the Insurance Regulatory and Development Authority (“IRDA”) and the Institute of Actuaries of India in
concurrence with the IRDA.