ICICI Bank 2003 Annual Report Download - page 136

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F72
Continued
8. Investments in affiliates
The acquiree
For the year ended March 31, 2002, the Company accounted for its 46% (2001: 46.4%) interest in the acquiree using
the equity method. The carrying value of the investment in the acquiree as of March 31, 2002, was Rs. 8,204 million
(2001: Rs. 7,562 million). The Company’s equity in the income of the acquiree for the year ended March 31, 2002
was Rs. 929 million (2001:Rs.811 million). During the year ended March 31, 2002, the Company received dividends
of Rs. 403 million (2001: Rs. 184 million) from the acquiree.
The summarized balance sheets and statements of income of the acquiree are set out below:
(Rs. in millions)
Balance sheet As of March 31,
2001 2002
Cash and cash equivalents 47,306 89,371
Trading assets 18,725 26,075
Securities 35,731 180,052
Loans 93,030 72,474
Other assets 25,746 36,833
Total assets 220,538 404,805
Deposits 164,254 325,221
Trading liabilities 5,958 1,237
Long-term debt 2,421 5,740
Other liabilities 31,598 54,457
Stockholders’ equity 16,307 18,150
Total liabilities and stockholders’ equity 220,538 404,805
(Rs. in millions)
Statement of income Year ended March 31,
2001 2002
Interest income 12,406 20,837
Interest expense (8,408) (15,116)
Net interest income 3,998 5,721
Provision for loan losses (1,082) (1,722)
Non-interest income 1,754 5,213
Non-interest expense (3,104) (6,260)
Income taxes (258) (931)
Cumulative effect of accounting change — 16
Net income 1,308 2,037
Insurance companies
The Company accounts for its 74% ownership interest in ICICI Prudential Life Insurance Limited (‘Prulife’) and ICICI
Lombard General Insurance Company Limited (‘Lombard’) by the equity method of accounting because of substantive
participative rights held by the minority shareholders.
The carrying value of the investment in these companies as of March 31, 2003, was Rs. 2,230million
(2002: Rs. 1,496 million). The Company’s equity in the loss of these affiliates for the year ended March 31, 2003 was
Rs. 971 million (2002: Rs. 681 million, 2001:Rs. 118million).
notes to the consolidated financial statements