To the Members of
ICICI Prudential Life Insurance Company Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of ICICI prudentialLife Insurance Company Limited (the"Company") which comprise the Balance Sheetas at March 312017 the related Revenue Account (also called the "Policyholders'Account" or the "Technical Account") the Profit and Loss Account (alsocalled the "Shareholders' Account" or the "Non-Technical Account")andthe Receipts and Payments Account for the year then ended and a summary of significantaccounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the Balance Sheetthe related Revenue account the Profit and Loss Account and the Receipts and Paymentsaccount of the Company in accordance with the accounting principles generally accepted inIndia including the provisions of The Insurance Act 1938 (the "Insurance Act")(amended by the Insurance Laws (Amendment) Act 2015) the Insurance Regulatory andDevelopment Authority Act 1999 (the "IRDA Act") the Insurance Regulatory andDevelopment Authority (Preparation of Financial Statements and Auditors' Report ofInsurance Companies) Regulations 2002 (the "IRDA Financial StatementsRegulations") and orders/directions/ circulars issued by the Insurance Regulatory andDevelopment Authority of India("IRDAI"/ "Authority") in this regardand Accounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safe guarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the InsuranceAct the IRDA Act the IRDA Financial Statement Regulations orders/directions/circularsissued by the IRDAI the accounting and auditing standards and matters which are requiredto
be included in the audit report under the provisions of the Act and Rules madethereunder.
We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredin accordance with the Insurance Act the IRDA Act the IRDA Financial StatementsRegulations and the Act to the extent applicable and in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia as applicable to Insurance Companies:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;
(b) in the case of Revenue Account of the net surplus for the year ended on that date;
(c) in the case of Profit and Loss Account of the profit for the year ended on thatdate; and
(d) in the case of the Receipts and Payments Account of the receipts and payments forthe year ended on that date.
1. The actuarial valuation of liabilities for life policies in force is theresponsibility of the Company's Appointed Actuary (the "Appointed Actuary"). Theactuarial valuation of these liabilities for life policies in force and for policies inrespect of which premium has been discontinued but liability exists as at March 312017has been duly certified by the Appointed Actuary and in her opinion the
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
To the Members of
ICICI Prudential Life Insurance Company Limited
We have audited the internal financial controls over financial reporting of ICICIPrudential Life Insurance Company Limited (the "Company") as of March 31 2017in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the"Guidance Note")issued by the Institute of Chartered Accountants of India(the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the company's business including adherenceto the Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing as specified under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of
internal financial controls over financial reporting assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company's internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
The Board of Directors
ICICI Prudential Life Insurance Company Limited
ICICI pru life towers
1089 Appasaheb Marathe Marg prabhadevi
Mumbai - 400 025
(Referred to in paragraph 1 of our Independent auditors' Report on other legal andregulatory requirements forming part of the Independent auditors' report dated April 252017)
this certificate is issued in accordance with the terms of our engagement letter withICICI prudential life Insurance Company limited (the "Company") wherein we arerequested to issue certificate for compliance with the provisions of paragraphs 3 and 4 ofSchedule C of the Insurance Regulatory and Development Authority (Preparation of FinancialStatements and Auditor's Report of Insurance Companies) Regulations 2002 (the"Regulations") read with regulation 3 of the Regulations.
The Company's Board of Directors is responsible for complying with the provisions ofThe Insurance Act 1938 (amended by the Insurance Laws (Amendment) Act 2015) (the"Insurance Act") the Insurance Regulatory and Development Authority Act 1999(the "IRDA Act") the Insurance Regulatory and Development Authority(Preparation of Financial Statements and Auditor's Report of Insurance Companies)Regulations 2002 (the "IRDA Financial Statements Regulations")orders/directions issued by the Insurance Regulatory and Development Authority of India(the "IRDAI") which includes the preparation of the Management Report. Thisincludes collecting collating and validating data and designing implementing andmonitoring of internal controls suitable for ensuring compliance as aforesaid.
pursuant to the requirements it is our responsibility to obtain reasonable assuranceand form an opinion based on our audit and examination of books and records as to whetherthe Company has complied with the matters contained in paragraphs 3 and 4 of Schedule C ofthe Regulations read with regulation 3 of Regulations.
We audited financial statements of the Company as of and financial year ended March 312017 on which we issued an unmodified audit opinion vide our report dated April 25 2017.Our audits of these financial
For B S R & Co. LLP
ICAI Firm Registration No: 101248W/W-100022
Membership no: 113156
Place : mumbai date : april 25 2017
INDEPENDENT AUDITORS' CERTIFICATE
statements were conducted in accordance with the Standards on Auditing and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India ('ICAI'). Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. Our audits were not planned and performed in connection with anytransactions to identify matters that may be of potential interest to third parties.
We conducted our examination in accordance with the Guidance Note on Reports orCertificates for Special Purposes (Revised 2016) (the 'Guidance Note') issued by theInstitute of Chartered Accountants of India ('ICAI'). The Guidance Note requires that wecomply with the independence and other ethical requirements of the Code of Ethics issuedby the ICAI.
We have complied with the relevant applicable requirements of the Standard on QualityControl ('SQC') 1 Quality Control for Firms that Perform Audits and Reviews of HistoricalFinancial Information and Other Assurance and Related Services Engagements.
In accordance with information and explanations given to us and to the best of ourknowledge and belief and based on our examination of the books of account and otherrecords maintained by the Company for the year ended March 31 2017 we certify that:
1. We have reviewed the Management Report attached to the financial statements for yearended March 31 2017 and on the basis of our review there is no apparent mistake ormaterial inconsistencies with the standalone financial statements;
2. Based on management representations and compliance certificates submitted to theBoard of Directors by the officers of the Company charged with compliance and the samebeing noted by the Board nothing has come to our attention that causes us to believe thatthe Company has not complied with the terms and conditions of registration as stipulatedby the IRDAI;
3. We have verified the cash balances to the extent considered necessary andsecurities relating to the Company's loans and investments as at March 31 2017 by actualinspection or on the basis of certificates / confirmations received from the Custodianand/ or Depository Participants appointed by the Company as the case may be. As at March31 2017 the Company does not have reversions and life interests;
4. The Company is not a trustee of any trust; and
5. No part of the assets of the Policyholders' Funds has been directly or indirectlyapplied in contravention to the provisions of the Insurance Act relating to theapplication and investments of the Policyholders' Funds.
For Walker Chandiok & Co LLP
Chartered Accountants ICAI Firm Registration No: 001076N/N500013
per Sudhir N. Pillai
Membership No: 105782
Place : Mumbai Date : April 25 2017