The Application of Accounting Concepts and Conventions

ICICI Bank
Continuous Internal Assessment

From- Tanya Patel

Registration no.-22211680
Class- 1BBA-A
Gmail- [email protected]
 ABOUT ICICI BANK

ICICI Bank Full form Industrial Credit and Investment Corporation of India is a leading private
sector Bank of India. ICICI Bank was established on 5 January 1955. It is an Indian
multinational bank and financial services company headquartered in Vadodara.
This bank offers a wide range of financial services for corporate and retail customers
through a variety of delivery channels and specialised subsidiaries in the areas of
investment, life and non– life insurance
The Principle Objective was to create a development financial institute for providing
medium- term and long- term project financing to Indian businesses.
BALANCE SHEET
at March 31, 2021

₹ in `000s
At
Schedule
31.03.2021
EQUITY AND LIABILITIES
Equity share capital 1 13,834,104
Employees stock options outstanding 31,010
Reserves and surplus 2 1,461,226,736
Deposits 3 9,325,221,605
Borrowings 4 916,309,564
Other liabilities and provisions 5 587,703,739
TOTAL EQUITY AND LIABILITIES 12,304,326,758

ASSETS
Cash and Bank balances 6 460,311,902
Balances with banks and money 7 870,970,599
Investments 8 2,812,865,399
Advances 9 7,337,290,904
Fixed assets 10 88,775,806
Other assets 11 734,112,148
TOTAL ASSETS 12,304,326,758

Contingent liabilities 12 26,486,406,690

Bills for collection 546,434,215
Significant accounting policies and
17 & 18
notes to accounts
PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2021

₹ in ‘000s
Year ended
Schedule
31.03.2021
I. INCOME
Interest earned 13 791,182,710
Other income 14 189,685,274
TOTAL INCOME 980,867,984

II. EXPENDITURE
Interest expended 15 401,288,374
Operating expenses 16 215,608,340
Provisions 202,044,429
TOTAL EXPENDITURE 818,941,143

III. PROFIT/(LOSS)

Net profit/(loss) for the year 161,926,841

Profit brought forward 213,274,679

TOTAL PROFIT/(LOSS) 375,201,520

IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve 40,482,000
Transfer to/(from) Reserve Fund (77,638)
Transfer to Capital Reserve 1,302,300
Transfer to Capital Redemption Reserve -
Transfer to/(from) Investment Reserve
-
Account
Transfer to/(from) Investment Fluctuation
(2,495,799)
Reserve
Transfer to Revenue and other reserves 15,000,000
Transfer to Special Reserve 10,900,000
Dividend paid during the year -
Corporate dividend tax paid during the year -
Balance carried over to balance sheet 310,090,657
TOTAL 375,201,520
Significant accounting policies and notes to
17 & 18
accounts
Earnings per share (refer note 18.1)
Basic (₹) 24.01
Diluted (₹) 23.67
Face value per share (₹) 2.00
IDENTIFICATION OF ACCOUNTING CONCEPTS AND CONVENSTIONS

1. Identified item: Provisions

Provisions 202,044,429

Statement in which identified: Expense side of Profit and loss

Principle related with: Prudence or conservatism concept
Reason: The conservatism concept is a concept in accounting which refers that
anticipating expenses and loss such as bad debts, to be prudent and ready to
manage it.

2. Identified item: Total of Asset and Liability

TOTAL ASSETS 12,304,326,758
TOTAL EQUITY AND LIABILITIES 12,304,326,758

Statement in which identified: Balance Sheet

Principle related with: Dual Aspect Concept
Reason: The dual aspect concept indicates that each transaction made by a
business impacts the business in two different aspects which are equal and opposite
in nature.

3. Identified item: Investment

Investments 8 2,812,865,399

Statement in which identified: Asset side of Balance Sheet

Principle related with: Cost Concept
Reason: The cost concept of accounting states that all acquisitions of items (e.g.,
assets or items needed for expending should be recorded and retained in books at
cost.
4. Identified item: Borrowings
Borrowings 4 916,309,564

Statement in which identified: liability side of Balance Sheet

Principle related with: Cost Concept
Reason: Cost Accounting is a method of accounting wherein all the costs involved
in performing any process, project or product are noted and analysed. These type of
analysis helps the management to take strategic decisions.

5. Identified item: Operating Expenses

1
Operating expenses 215,608,340
6

Statement in which identified: expense side of Profit and loss

Principle related with: Materiality concept
Reason: Materiality is an accounting principle which states that all items that are
reasonably likely to impact investors' decision-making must be recorded or reported
in detail in a business's financial statements using GAAP standards.

6. Identified item: Equity Share Capital

Equity share capital 1 13,834,104

Statement in which identified: Equity side of Balance Sheet

Principle related with: Business entity concept
Reason: States that the transactions related to a business must be recorded
separately from those of its owners and any other business entity. Recording
transactions in a business.

7. Identified item: Cash and Bank Balance

Cash and Bank Balance 6 460,311,902

Statement in which identified: Asset side of Balance Sheet

Principle related with: Monetary Unit Concept
 Reason: The monetary unit principle states that business transactions should only
be recorded if they can be expressed in terms of a currency. Money is the
measurement unit in accounting.

8. Identified item: Dividend

Dividend paid during the year - 6,453,078

Statement in which identified: Profit and Loss Account

Principle related with: Entity Concept
Reason: The business entity concept declares that a business stands
independently from its owner, and hence the two should be treated as separate
entities when recording transactions.

9. Identified item: Reserves and Surplus

Reserves and surplus 2 1,461,226,736

Statement in which identified: liability side of Balance Sheet

Principle related with: Conservatism
Reason: The conservatism concept is a concept in accounting which refers to
the idea that expenses and liabilities should be recognised as soon as possible
in a situation where there is uncertainty about the possible outcome, in
recording assets and revenues only when they are assured to be received.

10. Identified item: Employees stock options outstanding

Employees stock options outstanding 31,010

Statement in which identified: Liability side of Balance Sheet

Principle related with: Consistency conventions
Reason: The consistency principle states that business should maintain the same
accounting methods or principles throughout the accounting periods, so that users
of the financial statements or information are able to make meaningful conclusions
from the data.
 BIBLOGRAPHY

 Financial Accounting By SK Maheshwari

 https://www.icicibank.com/aboutus/Annual-Reports/2020-21/AR/balance-
sheet.html
 https://www.icicibank.com/aboutus/Annual-Reports/2020-21/AR/profit-and-loss-
account.html