ICICI Bank 2004 Annual Report Download - page 32

Directors’ Report
there is no compensation cost in fiscal 2004 based on the intrinsic value of options. However, if ICICI
Bank had used the fair value of options based on the Black-Scholes model, compensation costs in fiscal
2004 would have been higher by Rs. 324.0 million and proforma profit after tax would have been
Rs. 16.05 billion. On a proforma basis, ICICI Bank's basic and diluted earnings per share would have
been Rs. 26.13 and Rs. 25.92 respectively. The key assumptions used to estimate the fair value of
options are:
In respect of options granted in fiscal 2004, the weighted average price of the underlying share in
the market on the date of the option grant, the weighted average exercise price of the options and
the weighted average fair value of the options were Rs. 132.72 per share, Rs. 132.65 per option and
Rs. 46.23 per option respectively.
The Directors confirm:
1. that in the preparation of the annual accounts, the applicable accounting standards have been
followed, along with proper explanation relating to material departures;
2. that they have selected such accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the
state of affairs of the Bank at the end of the financial year and of the profit or loss of the Bank for that
period;
3. that they have taken proper and sufficient care for the maintenance of adequate accounting
records, in accordance with the provisions of the Banking Regulation Act, 1949 and the Companies
Act, 1956 for safeguarding the assets of the Bank and for preventing and detecting fraud and other
irregularities; and
4. that they have prepared the annual accounts on a going concern basis.
ICICI Bank is grateful to the Government of India, RBI, SEBI and overseas regulators for their continued
co-operation, support and advice. ICICI Bank wishes to thank its investors, the domestic and
international banking community, investment bankers, rating agencies and stock exchanges for their
support.
ICICI Bank would like to take this opportunity to express sincere thanks to its valued clients and
customers for their continued patronage. The Directors express their deep sense of appreciation to all
the employees, whose outstanding professionalism, commitment and initiative has made the
organisation's growth and success possible and continues to drive its progress. Finally, the Directors
wish to express their gratitude to the Members for their trust and support.
For and on behalf of the Board
Place : Mumbai N. VAGHUL
Date : July 23, 2004 Chairman
DIRECTORS' RESPONSIBILITY STATEMENT
ACKNOWLEDGEMENTS
Risk - free interest rate
5.122% - 5.939%
Expected life 10 Years
Expected volatility 40.065%
Expected dividends 4.060%
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