ICICI Bank 2003 Annual Report Download - page 103

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F39
schedules
forming part of the Consolidated Accounts Continued
SCHEDULE 18
A. SIGNIFICANT ACCOUNTING POLICIES
1. Overview
ICICI Bank Limited together with its subsidiaries, joint ventures and associates (collectively, the Group) is a diversified
financial services group providing a variety of banking and financial services including project finance, working capital
finance, venture capital finance, investment banking, treasury products and services, retail banking and broking.
ICICI Bank Limited (‘ICICI Bank’ or ‘the Bank’), incorporated in Vadodara, India is a publicly held bank engaged in
providing a wide range of banking and financial services including commercial banking and treasury operations. ICICI
Bank is a banking company governed by the Banking Regulation Act, 1949.
2. Principles of consolidation
The consolidated financial statements include the accounts of ICICI Bank, its subsidiaries, associates and joint
ventures.
The Bank consolidates all subsidiaries as defined in Accounting Standard (‘AS’) 21 “Consolidated Financial Statements”
issued by the Institute of Chartered Accountants of India (‘ICAI’) on line by line basis by adding together like items of
assets, liabilities, income and expenses. Further, the Bank accounts for investments in associates as defined by
AS 23 “Accounting for Investments in Associates in Consolidated Financial Statements” by the equity method of
accounting. The Bank has investments in certain joint ventures, which have been consolidated by the proportionate
consolidation method as required by AS 27 on “Financial Reporting of Interests in Joint Ventures.”
3. Basis of preparation
In fiscal 2001, ICICI Bank acquired and merged Bank of Madura into itself in an all-stock deal. Effective March 30,
2002, ICICI Bank acquired ICICI Limited (‘ICICI’) and two of its retail finance subsidiaries, ICICI Personal Financial
Services Limited (‘I PFS’) and ICICI Capital Services Limited (‘I CAPS’) along with ICICI’s interest in its subsidiaries
in an all-stock deal. The amalgamation was accounted for as per the approved Scheme of Amalgamation and the
purchase method of accounting.
The accounting and reporting policies of the Group used in the preparation of these financial statements conform with
the Accounting Standards issued by ICAI, the guidelines issued by the Reserve Bank of India (‘RBI’), Insurance
Regulatory and Development Association (‘IRDA’) and National Housing Bank (‘NHB’) from time to time as applicable
to relevant companies and generally accepted accounting principles prevailing in India.
The Group follows the accrual method of accounting and historical cost convention.
The preparation of financial statements requires the management to make estimates and assumptions considered in
the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements
and the reported income and expenses during the reporting period. Management believes that the estimates used in
the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.
The consolidated financial statements include the results of the following entities :
Sr. Name of the Company Country/ Relation Ownership
No. Residence Interest
1. ICICI Securities and Finance Company Limited India Subsidiary 99.92%
2. ICICI Brokerage Services Limited India Subsidiary 99.92%
3. ICICI Securities Inc. USA Subsidiary 99.92%
4. ICICI Securities Holding Inc. USA Subsidiary 99.92%
5. ICICI Venture Funds Management Company Limited India Subsidiary 99.99%
6. ICICI Home Finance Company Limited India Subsidiary 100.00%
7. ICICI Trusteeship Services Limited India Subsidiary 100.00%
8. ICICI Investment Management Company Limited India Subsidiary 100.00%
9. ICICI International Limited Mauritius Subsidiary 100.00%
10. ICICI Bank UK Limited United Kingdom Subsidiary 100.00%
11. ICICI Property Trust India Direct holding 100.00%
12. ICICI Eco-net Internet & Technology Fund India Direct holding 92.12%
13. ICICI Equity Fund India Direct holding 100.00%
14. ICICI Emerging Sectors Fund India Direct holding 100.00%
15. ICICI Strategic Investments Fund India Direct holding 100.00%