ICICI Bank 2015 Annual Report Download - page 207

forming part of the Consolidated Accounts (Contd.)
Schedules
205Annual Report 2014-2015
Consolidated Financial Statements
v) The Bank’s overseas banking subsidiaries account for unrealised gain/loss, net of tax, on investment in ‘Available
for Sale’ category directly in their reserves. Further unrealised gain/loss on investment in ‘Held for Trading’
category is accounted directly in the profit and loss account. Investments in ‘Held to Maturity’ category are carried
at amortised cost.
vi) In the case of life and general insurance businesses, investments are made in accordance with the Insurance Act,
1938, the IRDA (Investment) Regulations, 2000, and various other circulars/notifications issued by the IRDA in this
context from time to time.
In the case of life insurance business, valuation of investments (other than linked business) is done on the following
basis:
a. All debt securities and redeemable preference shares are considered as ‘held to maturity’ and accordingly
stated at historical cost, subject to amortisation of premium or accretion of discount over the period of
maturity/holding on a constant yield basis.
b. Listed equity shares are stated at fair value being the last quoted closing price on the National Stock Exchange
(NSE) (or BSE, in case the investments are not listed on NSE).
c. Mutual fund units at the balance sheet date are valued at the latest available net asset values of the respective
fund.
Unrealised gains/losses arising due to changes in the fair value of listed equity shares and mutual fund units are
taken to ’Revenue and other reserves’ and ‘Liabilities on policies in force’ in the balance sheet for Shareholders’
fund and Policyholders’ fund respectively for life insurance business.
In the case of general insurance business, valuation of investments is done on the following basis:
a. All debt securities including government securities and non-convertible preference shares are considered
as ‘held to maturity’ and accordingly stated at amortised cost determined after amortisation of premium or
accretion of discount on a constant yield basis over the holding/maturity period.
b. Listed equities and convertible preference shares at the balance sheet date are stated at fair value, being the
last quoted closing price on the NSE and in case these are not listed on NSE, then based on the last quoted
closing price on the BSE.
c. Mutual fund investments (other than venture capital fund) are stated at fair value, being the closing net asset
value at balance sheet date.
d. Investments other than mentioned above are valued at cost.
Unrealised gains/losses arising due to changes in the fair value of listed equity shares and mutual fund units are
taken to ’Revenue and other reserves’ in the balance sheet for general insurance business.
Insurance subsidiaries assess at each balance sheet date whether there is any indication that any investment in
equity units of mutual fund may be impaired. If any such indication exists, the carrying value of such investment is
reduced to its recoverable amount and the impairment loss is recognised in the revenue(s)/profit and loss account.
The total proportion of investments for which subsidiaries have applied accounting policies different from the Bank as
mentioned above, is approximately 17.61% of the total investments at March 31, 2015.
14. Provisions/write-offs on loans and other credit facilities
i) Loans and other credit facilities of the Bank are accounted for in accordance with the extant RBI guidelines as given
below:
a) The Bank classifies its loans and investments, including at overseas branches, and overdues arising from
crystallised derivative contracts, into performing and NPAs in accordance with RBI guidelines. Loans and