ICICI Bank 2016 Annual Report Download - page 30

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Directors’ Report
Annual Report 2015-2016
PERSONNEL
The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read
with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in an
Annexure and forms part of this report. In terms of Section 136(1) of the Companies Act, 2013, the Report and the
Accounts are being sent to the Members excluding the aforesaid Annexure. Any Member interested in obtaining a copy
of the Annexure may write to the Company Secretary at the Registered Ofce of the Bank.
INTERNAL CONTROL AND ITS ADEQUACY
The Bank has adequate internal controls and processes in place with respect to its nancial statements which provide
reasonable assurance regarding the reliability of nancial reporting and the preparation of nancial statements. These
controls and processes are driven through various policies, procedures and certications. The processes and controls
are reviewed periodically. The Bank has a mechanism of testing the controls at regular intervals for their design and
operating effectiveness to ascertain the reliability and authenticity of nancial information.
DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT, 1999
The Bank has obtained a certicate from its statutory auditors that it is in compliance with the Foreign Exchange
Management Act, 1999 provisions with respect to investments made in its consolidated subsidiaries during scal 2016.
RELATED PARTY TRANSACTIONS
The Bank undertakes various transactions with related parties in the ordinary course of business. The Bank has a Board
approved policy on Related Party Transactions, which has been disclosed on the website of the Bank and can be viewed at
http://www.icicibank.com/managed-assets/docs/personal/general-links/related-party-transactions-policy.pdf. The Bank
also has a Board approved Group Arms’ Length Policy which requires transactions with the group companies to be at
arm’s length. The transactions between the Bank and its related parties, during the year ended March 31, 2016, were
in the ordinary course of business and based on the principles of arm’s length. The details of material related party
transactions at an aggregate level for year ended March 31, 2016 is annexed as Annexure C.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9 is annexed herewith as Annexure D.
BUSINESS RESPONSIBILITY REPORTING
Business Responsibility Report as stipulated under Regulation 34 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 has been hosted on the website of the Bank
(http://www.icicibank.com/aboutus/annual.html). Any Member interested in obtaining a physical copy of the same
may write to the Company Secretary at the Registered Ofce of the Bank.
RISK MANAGEMENT FRAMEWORK
The Bank’s risk management framework is based on a clear understanding of various risks, disciplined risk assessment
and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are
continuously benchmarked with international best practices. The Board of Directors has oversight on all the risks assumed
by the Bank. Specic Committees have been constituted to facilitate focused oversight of various risks, as follows:
The Risk Committee of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity,
operational, outsourcing risks and business continuity management. The Committee also reviews the Risk Appetite &
Enterprise Risk Management frameworks, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing.
The stress testing framework includes a wide range of Bank-specic and market (systemic) scenarios. The ICAAP
exercise covers the domestic and overseas operations of the Bank, banking subsidiaries and material non-banking