ICICI Bank 2005 Annual Report Download - page 31

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the Black-Scholes model, compensation cost in fiscal 2005 would have been higher by Rs. 481.4 million
and proforma profit after tax would have been Rs. 19.57 billion. On a proforma basis, ICICI Bank’s basic and
diluted earnings per share would have been Rs. 26.89 and Rs. 26.67 respectively. The key assumptions
used to estimate the fair value of options are:
In respect of options granted in fiscal 2005, the weighted average price of the underlying share in the
market on the date of grant of option, the weighted average exercise price of the options and the weighted
average fair value of the options were Rs. 314.92 per share, Rs. 300.05 per option and Rs. 102.92 per option
respectively.
DIRECTORS’ RESPONSIBILITY STATEMENT
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.
ACKNOWLEDGMENTS
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 of 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 15, 2005 Chairman
29
Directors’ Report
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
4.609% - 9.330%
3 -10 years
38.753 - 67.900%
1.18 - 4.06%
Dickenson Tel: 022-2625 2282