You are here » Home » Companies » Company Overview » SBI Life Insurance Company Ltd

SBI Life Insurance Company Ltd.

BSE: 540719 Sector: Financials
NSE: SBILIFE ISIN Code: INE123W01016
BSE 00:00 | 23 May 674.00 14.70
(2.23%)
OPEN

670.00

HIGH

680.00

LOW

659.45

NSE 00:00 | 23 May 679.05 19.10
(2.89%)
OPEN

664.80

HIGH

684.00

LOW

659.30

OPEN 670.00
PREVIOUS CLOSE 659.30
VOLUME 9983
52-Week high 774.75
52-Week low 628.50
P/E 58.61
Mkt Cap.(Rs cr) 67,400
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 670.00
CLOSE 659.30
VOLUME 9983
52-Week high 774.75
52-Week low 628.50
P/E 58.61
Mkt Cap.(Rs cr) 67,400
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 2017the related Revenue Account (also called the "Policyholders' Account" or the"Technical Account") the Profit and Loss Account (also called the"Shareholders' Account" or "Non-Technical Account") and the Receiptsand Payments Account for the year then ended and a summary of significant accountingpolicies 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 as amended from time to time includingamendment brought by 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 Statementsand Auditor's Report of Insurance Companies) Regulations 2002 (the "IRDA FinancialStatements Regulations") orders/ directions/circulars issued by the InsuranceRegulatory and Development Authority of India (the"IRDAI"/"Authority") in this regard and the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 further amended by Companies (Accounting Standards) Amendment Rules 2016.

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 of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due 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 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 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 financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 with the Insurance Act the IRDA Act the IRDA Financial Statements Regulationsand the Act to the extent applicable and in the manner so required and give a true andfair view in conformity with accounting principles generally accepted in India asapplicable to Insurance companies:

i. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

ii. in the case of the Revenue Account of the net surplus for the year ended on thatdate;

iii. in the case of the Profit and Loss Account of the profit for the year ended onthat date; and

iv. in the case of the Receipts and Payments Account of the Receipts and Payments forthe 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 2017has 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 IRDAI 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 28 2017 certifying thematters specified in paragraphs 3 and 4 of Schedule C to the IRDA Financial Statements

Regulations.

(ii) As required under the IRDA Financial Statements Regulations read with section143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion and to the best of our information and according to the explanationsgiven to us proper books of accounts as required by law have been kept by the Company sofar as appears from our examination of those books;

(c) the financial accounting systems of the Company are centralized and thereforeaccounting returns are not required to be submitted by branches and other offices;

(d) the Balance Sheet Revenue Account Profit and Loss Account and the Receipts andPayments Account dealt with by this Report are in agreement with the books of account;

(e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 further amended by Companies (Accounting Standards) AmendmentRules 2016 and with the accounting principles as prescribed in the IRDA FinancialStatements Regulations and orders / directions issued by IRDAI in this behalf;

(f) In our opinion and to the best of our information and according to the explanationsgiven to us investments have been valued in accordance with the provisions of theInsurance Act the Regulations and / or orders / directions issued by IRDAI in thisbehalf;

(g) On the basis of written representations received from the directors as on March31 2017 and taken on record by the Board of Directors none of the Directors aredisqualified as on March 31 2017 from being appointed as a director in terms of section164 (2) of the Act.

(h) With regard to the directions and sub-directions issued under section 143(5) of theAct by the Comptroller and Auditor General of India refer to Annexure 'I' to this report.

(i) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toAnnexure 'II' to this report.

(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) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - For details Refer Note 1 of Part C of Schedule 16.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts.

iii) There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv) The disclosure requirement as envisaged in Notification G.S.R 308(E) dated 30thMarch 2017 is not applicable to the Company - Refer Note 35 of Part C of Schedule 16.

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 28 2017

Independent Auditors' Report

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

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 2017 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 2017 based

on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

Other Matter

We report that the actuarial valuation of liabilities for life policies in force andpolicies where premium is discontinued but liability exists as at March 31 2017 has beencertified by the Appointed Actuary as per the regulations and has been relied upon by usas mentioned in para other matters of our audit report on the financial statements for theyear ended March 31 2017. Our opinion is not modified in respect of above matter.

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 28 2017

Independent Auditors' Certificate

[Referred to in paragraph 6(i) of our Report on Other Legal and Regulatory Requirementsforming part of the Independent Auditors' Report dated April 28 2017)

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 complying with the provisions of TheInsurance Act 1938 as amended from time to time including amendment brought by InsuranceLaws (Amendment) Act 2015 (the "Insurance Act") the Insurance Regulatory andDevelopment Authority Act 1999 (the "IRDA Act") the Regulationsorders/directions/ circulars issued by the Insurance Regulatory and Development Authorityof India (the "IRDAI"/Authority) which includes the preparation of theManagement Report. This includes collecting collating and validating data and designingimplementing and monitoring of internal controls suitable for ensuring compliance asaforesaid.

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 and 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 Company') for the yearended March 31 2017 we certify that:

1. We have reviewed the Management Report attached to the financial statements for theyear ended March 31 2017 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 nothing has come to our attention that causes us to believe thatthe Company has not complied with the terms and conditions of registration stipulated byIRDAI;

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 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 relating to theapplication and investments of the Policyholders funds.

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 28 2017

Independent Auditors' Certificate

[Ref: Certificate in accordance with the Schedule I (B) (11) of IRDAI (Investment)Regulations 2016 ("the Regulations")]

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 2017.

2. In this connection we have performed the following procedures:

a) Obtained representation from the management that the Company has declared March 312017 as a business day for accepting application forms and that it has declared NAV forMarch 31 2017;

b) Obtained the list of applications for New Business Renewal Premium Top- upSurrender Free - Look Cancellation Fund Switches Withdrawal and Partial Withdrawal inrespect of Unit linked Products on March 31 2017 (together referred to as"Application Forms") from the Management;

c) Selected samples of Application Forms from the listing mentioned in paragraph 2(b)above and verified whether:

i. The applications received on Friday March 31 2017 upto 3.00 p.m. have beenappropriately stamped; and the NAV of March 31 2017 is applied for such applications forthe selected samples; and

ii. The applications received on Friday March 31 2017 after 3.00 p.m. hours havebeen appropriately stamped; and the NAV of next business day of financial year i.e. April3 2017 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 by the Institute of Chartered Accountants of India ("ICAI"). Theabove-mentioned procedures include examining evidence supporting the particulars on a testbasis. Further our scope of work did not involve us performing audit tests for thepurposes of expressing an opinion on the fairness or accuracy of any of the financialinformation or the financial statements of the Company taken as a whole. We have notperformed an audit the objective of which would be the expression of an opinion on thefinancial statements specified elements accounts or items thereof for the purpose ofthis certificate. Accordingly we do not express such opinion.

4. Based on the procedures performed by us as mentioned in paragraph 2 aboveaccording to the information and explanations provided to us and representation by theCompany's management we confirm that:

(a) The Company has declared March 31 2017 as a business day for accepting proposalforms;

(b) The Company has declared NAV for March 31 2017;

(c) The applications received on Friday March 31 2017 upto 3.00 p.m. have beenstamped as such and that the NAV of March 31 2017 is applied for proposals received upto3.00 p.m.

(d) The applications received on Friday March 31 2017 after 3.00 p.m. have beenstamped as such and that the NAV of next business day of financial year i.e. April 032017 is applied for proposals received after 3.00 p.m.

5. The concurrent auditors of the company M/s. Chokshi & Chokshi LLP CharteredAccountants have issued a Certificate dated April 21 2017 confirming the compliance withrequirements of Schedule I (B) (11) of the Regulations. We have read the Certificate andfound 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 Schedule I (B) (11) of the Regulationsand is not intended to be used or distributed for any other purpose. We have noresponsibility to update this certificate for events and circumstances occurring after thedate of this certificate.

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 28 2017

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 2017.

The preparation of financial statements of the SBI Life Insurance Company Limited forthe year ended 31 March 2017 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 Act are responsiblefor expressing opinion on the financial statements under section 143 of the Act based onindependent audit in accordance with the standards on auditing prescribed under section143(10) of the Act. This is stated to have been done by them vide their Audit Report dated28 April 2017.

I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under section 143(6)(a) of the Act of the Financial Statements of theSBI Life Insurance Company Limited for the year ended 31 March 2017. This supplementaryaudit has been carried out independently without access to the working papers of theStatutory Auditors and is limited primarily to inquiries of the Statutory Auditors andcompany personnel and a selective examination of some of the accounting records. On thebasis of my audit nothing significant has come to my knowledge which would give rise toany comment upon or supplement to Statutory Auditor'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 : 22nd June 2017