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SBI Life Insurance Company Ltd.

BSE: 540719 Sector: Financials
NSE: SBILIFE ISIN Code: INE123W01016
BSE LIVE 15:49 | 08 Dec 684.25 17.95
(2.69%)
OPEN

666.00

HIGH

688.00

LOW

666.00

NSE 15:57 | 08 Dec 685.70 17.30
(2.59%)
OPEN

664.05

HIGH

689.90

LOW

664.05

OPEN 666.00
PREVIOUS CLOSE 666.30
VOLUME 47759
52-Week high 738.00
52-Week low 628.50
P/E 74.05
Mkt Cap.(Rs cr) 68,425
Buy Price 0.00
Buy Qty 0.00
Sell Price 684.25
Sell Qty 1280.00
OPEN 666.00
CLOSE 666.30
VOLUME 47759
52-Week high 738.00
52-Week low 628.50
P/E 74.05
Mkt Cap.(Rs cr) 68,425
Buy Price 0.00
Buy Qty 0.00
Sell Price 684.25
Sell Qty 1280.00

SBI Life Insurance Company Ltd. (SBILIFE) - Auditors Report

Company auditors report

To

The Members of

SBI Life Insurance Company Limited

Report on the Financial Statements

1.We have audited the accompanying financial statements of SBI Life Insurance CompanyLimited ("the Company") which comprise the Balance Sheet as at March 31 2016the related Revenue Account (also called the "Policyholders Account" or the"Technical Account") the Profit and Loss Account (also called the"Shareholders' Account" or "NonTechnical Account") and the Receiptsand Payments Account for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2.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 financial statements that give a true and fair view of the Balance Sheet therelated Revenue Account the Profit and Loss Account and the Receipts and Payments Accountof the Company in accordance with accounting principles generally accepted in Indiaincluding 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 Auditor's Report ofInsurance Companies) Regulations 2002 (the "IRDA Financial StatementsRegulations") orders/ directions/ circulars issued by the Insurance Regulatory andDevelopment Authority of India (the "IRDAI") in this regard and the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3.Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risk of material misstatement of the financialstatements whether due to fraud and error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

4.In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required inaccordance the Insurance Act the IRDA Act the IRDA Financial Statements Regulations andthe Act to the extent applicable and in the manner so required and give a true and fairview in conformity with accounting principles generally accepted in India as applicableto insurance companies: i. in the case of the Balance Sheet of the state of affairs ofthe Company as at March 31 2016; ii. in the case of the Revenue Account of the netsurplus for the year ended on that date; iii. in the case of the Profit and Loss Accountof the profit for the year ended on that date; and iv. in the case of the Receipts andPayments Account of the Receipts and Payments for the year ended on that date.

Other Matter

5.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 31 2016has been duly certified by the Appointed Actuary and in his opinion the assumptions forsuch valuation are in accordance with the guidelines and norms issued by the InsuranceRegulatory and Development Authority of India ("IRDAI"/ Authority) and theInstitute of Actuaries of India in concurrence with the Authority. We have relied upon theAppointed Actuary's certificate in this regard for forming our opinion on the valuation ofliabilities for life policies in force and for policies in respect of which premium hasbeen discontinued but liability exists on financial statements of the Company.

Report on Other Legal and Regulatory Requirements

6.(i) As required by the IRDA Financial Statements

Regulations we have issued a separate certificate dated April 29 2016 certifying thematters specified in paragraphs 3 and 4 of Schedule C to the IRDA Financial StatementsRegulations.

(ii) As required under the IRDA Financial Statements Regulations read with section 143of the Companies Act 2013 we report that: (a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purpose of our audit; (b) In our opinion and to the best of our information andaccording to the explanations given to us proper books of accounts as required by lawhave been kept by the Company so far as appears from our examination of those books; (c)the financial accounting systems of the Company are centralized and therefore accountingreturns are not required to be submitted by branches and other offices; (d) the BalanceSheet Revenue Account Profit and Loss Account and the Receipts and Payments Accountdealt with by this report are in agreement with the books of account; (e) In our opinionthe aforesaid financial statements comply with the Accounting Standards specified undersection 133 of the Companies Act 2013 read with Rule 7 of

For L. S. NALWAYA & CO.

Chartered Accountants Firm Regn. No. 115645W

Ashish Nalwaya

Partner

Membership No. 110922

Place: Mumbai Date: April 29 2016 the Companies (Accounts) Rules 2014 and withaccounting principles as prescribed in the IRDA Financial Statements Regulations andorders / directions issued by IRDAI in this behalf; (f) In our opinion and to the best ofour information and according to the explanations given to us the investments have beenvalued in accordance with the provisions of the Insurance Act the Regulations and/ ororders/ directions issued by IRDAI in this behalf; (g) On the basis of writtenrepresentations received from the State Bank of India with regard to its nominee directorsand also from other directors of the company as on March 31 2016 and taken on record bythe Board of Directors none of the Directors are disqualified as on March 31 2016 frombeing appointed as a director in terms of section 164(2) of the Act.

(h) With regard to the revised directions and sub-directions issued under section143(5) of Companies Act 2013 by the Comptroller and Auditor General of India refer toour report in Annexure "I". (i) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our Separate Report in Annexure "II'.

(j) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i) TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements – For details refer point 1 of Part C of schedule 16. ii) TheCompany has made provision as required under the applicable law or accounting standardsfor material foreseeable losses if any on long-term contracts. iii) There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For P. PARIKH & ASSOCIATES

Chartered Accountants Firm Regn. No. 107564W

Ashok Rajagiri

Partner

Membership No. 046070

[Referred to in paragraph 6(i) of the Independent Auditors' Report of even date to themembers of SBI Life Insurance Company Limited on the financial statements for the yearended March 31 2016]

This certificate is issued to comply with the provisions of paragraphs 3 and 4 ofSchedule C of 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.

Management of the Company is responsible for complyingwiththeprovisionsofTheInsuranceAct1938(the"Insurance Act") the InsuranceRegulatory and Development Authority Act 1999 (the "IRDA Act") the InsuranceRegulatory and Development Authority (Preparation of Financial Statements and Auditor'sReport of Insurance Companies) Regulations 2002 (the "IRDA Financial StatementsRegulations") the Insurance Laws (Amendment) Act 2015 orders/ directions issued bythe Insurance Regulatory and Development Authority of India (the "IRDAI") whichincludes the preparation of the Management Report. This includes collecting collating andvalidating data and designing implementing and monitoring of internal controls suitablefor ensuring compliance as aforesaid.

Our responsibility for the purpose of this certificate is limited to certifyingmatters contained in paragraphs 3 and 4 of Schedule C of the Regulations. We conducted ourexamination in accordance with the Guidance Note on Audit Reports and Certificates forSpecial Purposes issued by the Institute of Chartered Accountants of India (the‘ICAI').

In accordance with the information and explanations given to us to the best of ourknowledge and belief and based on our examination of the books of account and otherrecords maintained by SBI Life Insurance Company Limited (‘the

For L. S. NALWAYA & CO.

Chartered Accountants Firm Regn. No. 115645W

Ashish Nalwaya

Partner

Membership No. 110922

Place: Mumbai Date: April 29 2016

Company') for the year ended March 31 2016 we certify that:

1.We have reviewed the Management Report attached to the financial statements for theyear ended March 31 2016 and on the basis of our review there is no apparent mistake ormaterial inconsistencies with the 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 we certify that the Company has complied with the terms andconditions of registration stipulated by Insurance Regulatory and Development Authority ofIndia (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 2016 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 2016 the Company does not have reversions and life interests;

4.The Company is not the 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 1938 and the InsuranceLaws (Amendment) Act 2015 relating to the application and investments of thePolicyholders funds.

For P. PARIKH & ASSOCIATES

Chartered Accountants Firm Regn. No. 107564W

Ashok Rajagiri

Partner

Membership No. 046070

[Ref: Certificate in accordance with the Regulation 13 (D) (7) of the IRDA (Investment)(5th Amendment) Regulations ("the Regulations") 2013]

1.At the request of SBI Life Insurance Company Limited (‘the Company') we haveperformed the procedures stated in paragraph 2 below for the purpose of issuing acertificate in connection with the Regulations regarding the declaration of the Net AssetValue (‘NAV') of the schemes of the Company as at March 31 2016.

2.In this connection we have performed the following procedures: a) Obtainedrepresentation from the management that the Company has declared March 31 2016 as abusiness day for accepting application forms and that it has declared NAV for March 312016; b) Obtained the list of New Business Renewal Premium Top-up Surrender Free– Look Cancellation Fund Switches Withdrawal and Partial Withdrawal received inrespect of Unit linked Products on March 31 2016 (together referred to as"Application Forms") from the Management; c) Selected samples of ApplicationForms from listing mentioned in paragraph 2(b) above and verified whether: i. Theapplications received on Thursday

March 31 2016 upto 3.00 p.m. have been appropriately stamped; and the NAV of March31 2016 is applied for such applications for the selected samples; and ii. Theapplications received on Thursday

March 31 2016 after 3.00 p.m. hours have been appropriately stamped; and the NAV ofApril 1 2016 is applied for such applications for the selected samples.

3.The compliance with conditions stated in the circular is the responsibility of theCompany's management. Our responsibility is to perform the above-mentioned procedures onthe particulars and state our findings. We performed the above-mentioned procedures inaccordance with the Guidance Note on Audit Reports and Certificates for Special Purposesissued

For L. S. NALWAYA & CO.

Chartered Accountants Firm Regn. No. 115645W

Ashish Nalwaya

Partner

Membership No. 110922

Place: Mumbai Date: April 29 2016 by the Institute of Chartered Accountants of India("ICAI"). The above-mentioned procedures include examining evidence supportingthe particulars on a test basis. Further our scope of work did not involve us performingaudit tests for the purposes of expressing an opinion on the fairness or accuracy of anyof the financial information or the financial statements of the Company taken as a whole.We have not performed an audit the objective of which would be the expression of anopinion on the financial statements specified elements accounts or items thereof forthe purpose of this certificate. Accordingly we do not express such opinion.

4.Based on the procedures performed by us as mentioned in paragraph 2 above accordingto the information and explanations provided to us and representation by the Company'smanagement we confirm that: (a) The Company has declared March 31 2016 as a business dayfor accepting proposal forms; (b) The Company has declared NAV for March 31 2016; (c) Theapplications received on Thursday March 31 2016 upto 3.00 p.m. have been processed withthe NAV of March 31 2016; and (d) The applications received on Thursday March 31 2016after 3.00 p.m. have been processed with the NAV of the next business day i.e. April 012016.

5.The concurrent auditors of the company M/s. Chokshi

& Chokshi LLP Chartered Accountants have issued a Certificate dated April 11 2016confirming the compliance with requirements of Regulation 13 (D) (5) of the Regulations.We have read the Certificate and found the same to be in order.

6.This certificate is issued at the request of the Company solely for use of theCompany for inclusion in the annual accounts as per Regulation 13 (D) (7) of theRegulations and is not intended to be used or distributed for any other purpose. We haveno responsibility to update this certificate for events and circumstances occurring afterthe date of this certificate.

For P. PARIKH & ASSOCIATES

Chartered Accountants Firm Regn. No. 107564W

Ashok Rajagiri

Partner

Membership No. 046070

ANNUAL REPORT 2015-16

Annexure "I" forming part of Independent Auditor's Report

Report on revised directions and sub-directions issued by Comptroller and AuditorGeneral of India under section 143 (5) of Companies Act 2013.

1.The Company has clear title / lease deeds for all freehold and leasehold landreflected in books as on 31st March 2016.

2.The Company has written off bad debts amounting to ` 4719220/- towards agent'sbalances in FY 2015-16 as per the policy of the Company.

3.There is no inventory lying with third parties and the company has not received gifts/ grants from the government or other authorities.

4.All the securities purchased by the Company are held in dematerialized form withclear title of ownership. The custodian statement matches with the books of accounts ofthe Company.

5. a) The amount of policy liabilities depicted in the balance sheet agrees with thecalculations made by the appointed actuary. b) The provision for linked liability matcheswith the outstanding number of units multiplied with NAV of respective schemes as on thereporting date.

6.The Company has given preliminary loss advices and claim loss advices in time to thereinsurers in respect of reinsurance ceded business in a timely manner and adequateprovision have been made for all advices received upto the date of finalization. Thecompany is not into inward reinsurance business.

7.The Company took part in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) launched inMay 2015 and tied up with banks and the method of accounting of premium and reportedclaims were as per the conditions of the arrangement / scheme.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of SBI LifeInsurance Company Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the financial statements of the Company for the 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control 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 control 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 authorizations 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For L. S. NALWAYA & CO. For P. PARIKH & ASSOCIATES
Chartered Accountants Chartered Accountants
Firm Regn. No. 115645W Firm Regn. No. 107564W
Ashish Nalwaya Ashok Rajagiri
Partner Partner
Membership No. 110922 Membership No. 046070
Place: Mumbai
Date: April 29 2016

AUDITORS' REPORT

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THECOMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF SBI LIFE INSURANCE COMPANY LIMITED FORTHE YEAR ENDED 31 MARCH 2016.

The preparation of financial statements of the SBI Life Insurance Company Limited forthe year ended 31 March 2016 in accordance with the financial reporting frameworkprescribed under the Insurance Act 1938 read with the Insurance Regulatory andDevelopment Authority (Preparation of Financial Statements and Auditor's Report ofInsurance Companies) Regulations 2002 and the Companies Act 2013 (Act) is theresponsibility of the management of the Company. The Statutory Auditor appointed by theComptroller and Auditor General of India under section 139(5) of the Companies Act 2013is responsible for expressing opinion on these financial statements under section 143 ofthe Companies Act 2013 based on independent audit in accordance with the standards onauditing prescribed under section 143(10) of the Companies Act 2013. This is stated tohave been done by them vide their Audit Report dated 29th April 2016.

I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under section 143(6)(a) of the Companies Act 2013 of theFinancial Statements of the SBI Life Insurance Company Limited for the year ended 31March 2016. This supplementary audit has been carried out independently without access tothe working papers of the Statutory Auditors and is limited primarily to inquiriesof the Statutory Auditors and company personnel and a selective examination of some of theaccounting records. On the basis of my audit nothing significant has come to myknowledge which would give rise to any comment upon or supplement to StatutoryAuditor's report.

For and on behalf of the Comptroller and Auditor General of India

(Roop Rashi)

Principal Director of Commercial Audit and ex-officio Member Audit Board-I Mumbai

Place: Mumbai

Date: 12th August 2016