ICICI Bank 2008 Annual Report Download - page 152

F78
12. Deferred tax
As on March 31, 2008, the Group has recorded net deferred tax asset of Rs. 17,280.5 million (March 31, 2007: Rs. 7,659.1
million), which has been included in other assets. The break-up of deferred tax assets and liabilities into major items is given
below
Rupees in million
Particulars As on March 31, 2008 As on March 31, 2007
Deferred tax asset
Provision for bad and doubtful debts .................................................. 18,395.7 11,943.7
Capital loss ........................................................................................... ——
Others .................................................................................................. 4,074.3 1,835.0
Total deferred tax asset ..................................................................... 22,470.0 13,778.7
Less: Deferred tax liability
Depreciation on fixed assets ............................................................... 6,239.8 6,574.9
Others .................................................................................................. 75.2 —
Total deferred tax liability .................................................................. 6,315.0 6,574.9
Add: Net deferred tax asset pertaining to
foreign branches/subsidiaries ........................................................... 1,125.5 455.3
Total net deferred tax asset/(liability) .............................................. 17,280.5 7,659.1
As on March 31, 2008 the life insurance subsidiary and ICICI Bank Canada have created deferred tax assets on carry forward
unabsorbed losses amounting to Rs. 2,170.8 million (March 31, 2007: Rs. 690.0 million) and Rs. 685.6 million (March 31,
2007: Rs. 281.0 million) respectively based on the virtual certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
13. Information about business and geographical segments
A. Business segments from the year ended March 31, 2008
Pursuant to the guidelines issued by the Reserve Bank of India vide its circular no. DBOD.No.BP.BC.81/21.04.018/2006-
07 dated April 18, 2007 on enhanced disclosure on “Segmental Reporting” which is effective for the reporting period
ended March 31, 2008, consolidated segmental report has been revised as follows:
1. Retail Banking includes exposures of ICICI Bank Limited (‘the Bank’) which fulfill the four criteria of orientation,
product, granularity and low value of individual exposures for retail exposures laid down in the Basel Committee
on Banking Supervision document “International Convergence of Capital Measurement and Capital Standards”,
as per the RBI guidelines for the Bank.
2. Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, by the
Bank which are not included under the “Retail Banking” segment, as per the RBI guidelines.
3. Treasury includes the entire investment portfolio of ICICI Bank, ICICI Eco-net Internet and Technology Fund, ICICI
Equity Fund, ICICI Emerging Sectors Fund and ICICI Strategic Investments Fund.
4. Other Banking business includes hire purchase and leasing operations, gain/loss on sale of banking & non-
banking assets and other items not attributable to any particular business segment. Further it also includes the
Bank’s banking subsidiaries i.e. ICICI Bank UK PLC., ICICI Bank Canada and its subsidiary, namely ICICI Wealth
Management Inc. and ICICI Bank Eurasia LLC.
5. Life Insurance represents ICICI Prudential Life Insurance Company Limited.
6. General Insurance represents ICICI Lombard General Insurance Company Limited.
7. Others includes ICICI Home Finance Company Limited, ICICI International Limited, ICICI Securities Primary
Dealership Limited, ICICI Securities Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Venture
Funds Management Company Limited, ICICI Prudential Asset Management Company Limited, ICICI Prudential
Trust Limited, ICICI Property Trust, ICICI Investment Management Company Limited, ICICI Trusteeship Services
Limited, TCW/ICICI Investment Partners LLC., TSI Ventures (India) Private Limited, ICICI Kinfra Limited, ICICI West
Bengal Infrastructure Development Corporation Limited, Financial Information Network and Operations Limited
(FINO), I-Process Services (India) Private Limited, I-Solutions Providers (India) Private Limited, NIIT Institute of
Finance, Banking and Insurance Training Limited and ICICI Venture Value Fund.
Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated
to segments on a systematic basis.
All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units
at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve
requirements. While the transfer pricing methodology followed for the year ended March 31, 2007 was based on
similar principles, the same has been refined further in the current year.
Pursuant to the reorganisation of the business segments, the business segments are not comparable to the
segments reported for the year ended March 31, 2007.
forming part of the Consolidated Accounts (Contd.)
schedules
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