ICICI Bank 2003 Annual Report Download - page 80

F16
forming part of the Accounts Continued
schedules
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences arising
between the carrying values of assets and liabilities and their respective tax basis and operating carry forward losses.
Deferred tax assets are recognised only after giving due consideration to prudence. Deferred tax asset and liabilities
are measured using tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.
The impact on account of changes in the deferred tax assets and liabilities is also recognised in the income statement.
Deferred tax assets are recognised based upon management’s judgement as to whether realisation is considered
reasonably certain.
10. Translation of the Financial Statements of Foreign Representative Offices
In accordance with the guidelines issued by the Reserve Bank of India, all assets, liabilities, income and expenditure of the
foreign representative offices of the Bank have been converted at the closing rate prevailing on the balance sheet date.
B.B.
B.B.
B. NOTES FORMING PART OF THE ACCOUNTS
1. Information about Business and Geographical segments
The Bank had been reporting segmental results under three business segments namely Retail Banking, Corporate Banking
and Treasury & Corporate office. Consequent to the merger of erstwhile ICICI Limited and two of its subsidiaries ICICI PFS
Limited and ICICI Capital Services Limited with the Bank, the following has been considered as reportable segments :
• Commercial Banking comprising the retail and corporate banking business of the Bank.
• Investment Banking comprising the rupee and forex treasury of the Bank
Based on such allocations, segmental Balance Sheet as on March 31, 2003 and segmental Profit & Loss account for
the year ended March 31, 2003 have been prepared.
(Rupees in million)
Business segments Commercial Banking Investment Banking Total
Current Previous Current Previous Current Previous
Particulars Year year year year year year
1. Revenue (before profit on
sale of shares of ICICI Bank
Limited held by erstwhile
ICICI Limited) ....................... 92,717.0 22,891.2 29,157.5 7,550.9 121,874.5 30,442.1
2. Less: Inter segment Revenue ————(8,515.6) (3,176.2)
3. Total Revenue (1) – (2) ........ ————113,358.9 27,265.9
4. Operating Profit (i.e.
Profit before unallocated
expenses, extraordinary profit,
and tax) ................................ 9,456.0 4,326.2 4,346.1 1,124.5 13,802.1 5,450.9
5. Unallocated expenses ......... ——————
6. Profit on sale of shares of
ICICI Bank Limited held by
erstwhile ICICI Limited........ ——11,910.0 —11,910.0 —
7. Provisions (net) including
Accelerated/Additional
Provisions ............................. 17,305.7 2,709.9 602.4 (157.0) 17,908.1 2,552.9
8. Profit before tax (4)-(5)-(6)-(7) (7,849.7) 1,616.3 15,653.7 1,281.7 7,804.0 2,898.0
9. Income tax expenses (net)/
(net deferred tax credit) ...... ————(4,257.8) 315.0
10. Net Profit (8)-(9) ................... — ——— 12,061.8 2,583.0
Other Information
11. Segment assets .................. 685,550.8 669,889.9 363,550.4 361,303.1 1,049,101.2 1,031,193.0
12. Unallocated assets .............. ————19,018.5 9,870.0
13. Total assets (11)+(12) ......... ————1,068,119.7 1,041,063.0
14. Segment liabilities ............... 800,361.9 742,014.9 267,757.8 297,500.1 1,068,119.7 1,039,515.0
15. Unallocated liabilities .......... —————1,548.0
16. Total liabilities (14)+(15) ...... ————1,068,119.7 1,041,063.0
The business operations of the Bank are largely concentrated in India. Activities outside India are restricted to resource
mobilisation in international markets. The assets and income from foreign operations are immaterial.