ICICI becomes the first Indian financial intermediary to undertake full scope audit as per US GAAP

The Board of Directors of ICICI at its meeting held in Mumbai today, approved the audited US GAAP accounts of ICICI for the years ended March 31, 1998 and March 31, 1999. ICICI has undertaken a full scope audit of its accounts as per the United States Generally Accepted Accounting Principles (US GAAP), being the first financial intermediary in India to do so. ICICI had appointed international accounting firm KPMG to audit its financial statements as per US GAAP. ICICI believes its adoption of global benchmarks like US GAAP in financial reporting, enhanced transparency and effective communication has resulted in positive reactions from the investors and significantly increased investor confidence.

In keeping with its objective of being a globally competitive domestic player, ICICI has always been a pioneer in introducing international standards to the Indian financial markets. In particular, ICICI has made continuous efforts to set higher standards for adequate and meaningful dissemination of relevant information with the objective of achieving full transparency for its stakeholders. Financial reporting is an area where ICICI believes that it is imperative to use global benchmarks.

Accounting treatments can significantly alter the accuracy of financial and supervisory reporting and related capital calculations. This problem can be effectively mitigated, if not resolved, by the restatement of accounts presented as per the Indian Generally Accepted Accounting Principles ("GAAP") with respect to the international accounting standards like US GAAP.

As per the audited US GAAP financial statements, the net income applicable to common stock was Rs. 705 crores in FY1998-99 and the stockholders' equity as of March 31, 1999 was Rs. 3,604 crores.