ICICI Bank 2015 Annual Report Download - page 164

162 Annual Report 2014-2015
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
33. Fixed Assets
The following table sets forth, for the periods indicated, the movement in software acquired by the Bank, as included
in fixed assets.
` in million
Particulars At
March 31, 2015
At
March 31, 2014
At cost at March 31 of preceding year 9,433.7 8,508.0
Additions during the year 1,827.9 925.7
Deductions during the year (0.9) –
Depreciation to date (8,554.8) (7,298.8)
Net block 2,705.9 2,134.9
34. Description of contingent liabilities
The following table describes the nature of contingent liabilities of the Bank.
Sr. no. Contingent liability Brief Description
1. Claims against the Bank, not
acknowledged as debts
This item represents demands made in certain tax and legal matters against the Bank in the
normal course of business and customer claims arising in fraud cases. In accordance with
the Bank’s accounting policy and AS - 29, the Bank has reviewed and classified these items
as possible obligations based on legal opinion/judicial precedents/assessment by the Bank.
2. Liability for partly paid
investments
This item represents amounts remaining unpaid towards liability for partly paid investments.
These payment obligations of the Bank do not have any profit/loss impact.
3. Liability on account of
outstanding forward
exchange contracts
The Bank enters into foreign exchange contracts in the normal course of its business, to
exchange currencies at a pre-fixed price at a future date. This item represents the notional
principal amount of such contracts, which are derivative instruments. With respect to the
transactions entered into with its customers, the Bank generally enters into off-setting
transactions in the inter-bank market. This results in generation of a higher number of
outstanding transactions, and hence a large value of gross notional principal of the portfolio,
while the net market risk is lower.
4. Guarantees given on
behalf of constituents,
acceptances, endorsements
and other obligations
This item represents the guarantees and documentary credits issued by the Bank
in favour of third parties on behalf of its customers, as part of its trade finance
banking activities with a view to augment the customers’ credit standing. Through these
instruments, the Bank undertakes to make payments for its customers’ obligations, either
directly or in case the customer fails to fulfill their financial or performance obligations.
5. Currency swaps, interest
rate swaps, currency
options and interest rate
futures
This item represents the notional principal amount of various derivative instruments which
the Bank undertakes in its normal course of business. The Bank offers these products to its
customers to enable them to transfer, modify or reduce their foreign exchange and interest
rate risks. The Bank also undertakes these contracts to manage its own interest rate and
foreign exchange positions. With respect to the transactions entered into with its customers,
the Bank generally enters into off-setting transactions in the inter-bank market. This results in
generation of a higher number of outstanding transactions, and hence a large value of gross
notional principal of the portfolio, while the net market risk is lower.
6. Other items for which the
Bank is contingently liable
Other items for which the Bank is contingently liable primarily include the amount of
Government securities bought/sold and remaining to be settled on the date of financial
statements. This also includes the value of sell down options and other facilities pertaining
to securitisation, the notional principal amounts of credit derivatives, amount applied in
public offers under Application Supported by Blocked Amounts (ASBA), bill re-discounting,
amount transferred to the RBI under the Depositor Education and Awareness Fund (DEAF),
commitment towards contribution to venture fund and the amount that the Bank is obligated
to pay under capital contracts. Capital contracts are job orders of a capital nature which have
been committed.