ICICI Bank 2003 Annual Report Download - page 157

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F93
Components of income tax expense from continuing operations
The components of income tax expense/(benefit) from continuing operations are set out below:
(Rs. in millions)
Year ended March 31,
2001 2002 2003
Current 4,458 3,474 1,287
Deferred (4,269) (3,223) (4,348)
Income tax expense/(benefit) reported 189 251 (3,061)
Only an insignificant amount of the Company’s income/(loss) before income taxes and income tax expense/(benefit)
was from outside India.
Allocation of income taxes
The total income tax expense/(benefit) was recorded as follows:
(Rs. in millions)
Year ended March 31,
2001 2002 2003
Income/(loss) from continuing operations 189 251 (3,061)
Unrealized gain/(loss) on securities available for sale (481) 890 1,461
Additional paid in capital 605 — 599
Income tax expense/(benefit) reported 313 1,141 (1,001)
29. Commitments and contingencies
Loan commitments
The Company has outstanding undrawn commitments to provide loans and financing to customers. These loan
commitments aggregated Rs.48,759million as of March 31, 2003 (2002: Rs.68,217million). The interest rate on
these commitments is dependent on the lending rates on the date of the loan disbursement. Further, the commitments
have fixed expiration dates and are contingent upon the borrower’s ability to maintain specific credit standards.
Guarantees
As a part of its project financing and commercial banking activities, the Company has issued guarantees to enhance
the credit standing of its customers. These generally represent irrevocable assurances that the Company will make
payments in the event that the customer fails to fulfill its financial or performance obligations. Financial guarantees
are obligations to pay a third party beneficiary where a customer fails to make payment towards a specified financial
obligation. Performance guarantees are obligations to pay a third party beneficiary where a customer fails to perform
a non-financial contractual obligation. The guarantees are generally for a period not exceeding 10years.
The credit risk associated with these products, as well as the operating risks, are similar to those relating to other
types of financial instruments.
The current carrying amount of the liability for the Company’s obligations under the guarantee amounted to
Rs. 346 million (2002: Nil).
Continued
notes to the consolidated financial statements