ICICI Ltd - (Nyse: IC) Message Board

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Non-Tech : ICICI Ltd - (Nyse: IC)

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To: Mohan Marette who wrote (365)	3/11/2000 5:18:00 PM
From: akmike	Read Replies (1) of 494

Mohan-many thanks for the report. I have no knowledge specific to this situation, but I can comment that throughout our history here in the U. S. investors have been continually burned badly by an overreliance on audited GAAP accounting. This phenomenon most generally occurs when a particular segment of lending is undergoing a significant growth phase. Examples would be the REIT crisis in the 70's, the S & L crisis in the 80's, and the syndication and secondary mortgage activities for "non-prime" borrowers in the 90's. The simple fact is that time-lag features of GAAP application are insufficient to provide the warnings needed during the rapid growth which is covering up fundamental deterioration of the loan portfolio. This (rapid-growth) is a situation where shareholders must rely on management and not outside auditors for ample protections. Again, I don't have adequate information to form an opinion on ICICI Bank and this dictates my heading to the sidelines until more info is obtained. That others may have also reacted similarly makes me wonder if the press leaks came from the RBI or from someone else who is interested in buying at lower levels?

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