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HDFC Standard Life Insurance Company Ltd.

BSE: 540777 Sector: Financials
NSE: HDFCLIFE ISIN Code: INE795G01014
BSE 00:00 | 17 Aug 461.20 -0.45
(-0.10%)
OPEN

462.90

HIGH

466.00

LOW

460.10

NSE 00:00 | 17 Aug 461.30 0.10
(0.02%)
OPEN

463.40

HIGH

465.70

LOW

459.50

OPEN 462.90
PREVIOUS CLOSE 461.65
VOLUME 85661
52-Week high 547.25
52-Week low 307.65
P/E 79.11
Mkt Cap.(Rs cr) 92,859
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 462.90
CLOSE 461.65
VOLUME 85661
52-Week high 547.25
52-Week low 307.65
P/E 79.11
Mkt Cap.(Rs cr) 92,859
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HDFC Standard Life Insurance Company Ltd. (HDFCLIFE) - Auditors Report

Company auditors report

TO THE MEMBERS OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of HDFC STANDARDLIFE INSURANCE COMPANY LIMITED ("the Company") which comprise the Balance Sheetas at March 31 2017 the related Revenue Account (also called the"Policyholders' Account" or the "Technical Account") the Profit andLoss Account (also called the "Shareholders' Account" or "Non-Technical Account") and the Receipts and Payments Account for the year endedMarch 31 2017 and summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 preparationof these standalone financial statements to give a true and fair view of the financialposition financial performance and receipts and payments of the Company in accordancewith the requirements of the Insurance Act 1938 as amended by Insurance Laws (Amendment)Act 2015 (the "Insurance Act") read with Insurance Regulatory and DevelopmentAct 1999 (the "IRDA Act") Insurance Regulatory and Development Authority(Preparation of Financial Statements and Auditor's Report Insurance Companies)Regulations 2002 ("the regulations") orders/directions circulars guidelinesissued by the Insurance Regulatory and Development Authority of India (IRDAI) in thisregard and in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014 to the extent applicable and in the manner sorequired. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding 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 design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Insurance Act the IRDA Act theRegulations the Companies Act and the Rules made there under including the accountingstandards to the extent applicable and auditing standards and matters which arerequired to be included in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act and other applicable authoritative pronouncementsissued by the Institute of Chartered Accountants of India. Those Standards andpronouncements require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial 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 reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is suficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements are prepared in accordance withthe requirements of the Insurance Act 1938 the Insurance Regulatory andDevelopment Authority Act 1999 the Regulations and the Companies Act 2013 to the extentapplicable and in the manner so required and give a true and fair view in conformity withthe accounting principles generally accepted in India as applicable to InsuranceCompanies:

(a) in the case of the Balance Sheet of the state of aflairs of the Company as atMarch 31 2017;

(b) in the case of the Revenue Account of the net surplus for the year ended on thatdate;

(c) in the case of the Profit and Loss Account of the profit for the year ended onthat date; and

(d) in the case of the Receipts and Payments Account of the receipts and payments forthe year ended on that date.

Other Matters

9. The actuarial valuation of liabilities for life policies in-force and policies wherepremium is discontinued is the responsibility of the Company's Appointed Actuary (the"Appointed Actuary") which has been certified by the Appointed Actuary in accordancewith the regulations as mentioned in paragraph 10 below. Accordingly we have relied uponthe Appointed Actuary's certificate for forming our opinion on the financial statements ofthe Company.

10. The financial statements of the Company for the year ended March 31 2016 wereaudited by Price Waterhouse Chartered Accountants LLP and Haribhakti & Co. LLPChartered Accountants who vide their audit report dated April 18 2016 have expressed asunmodified opinion thereon.

Report on Other Legal and Regulatory Requirements

11. The actuarial valuation of liabilities for life policies in-force and for policieswhere premium has been discontinued but liability exists as at March 31 2017 has beenduly certified by the Appointed Actuary.

The Appointed Actuary has also certified that in his opinion the assumptions for suchvaluation are in accordance with the generally accepted actuarial principles andpractices requirements of the Insurance Act regulations notified by the IRDAI andActuarial Practice Standards issued by the Institute of Actuaries of India in concurrencewith the IRDAI;

12. As required by the Regulations we have issued a separate certificate dated May 32017 certifying the matters specified in paragraphs 3 and 4 of Schedule C to theRegulations.

13. Further to our comments in the Certificate referred to in Paragraph 11 above asrequired under the Regulations read with Section 143 (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 purposes of our audit and have foundthem to be satisfactory;

(b) In our opinion and to the best of our information and according to the explanationsgiven to us proper books of account as required by law have been maintained by theCompany so far as it appears from our examination of those books;

(c) As the Company's financial accounting system is centralised at Head Office noreturns for the purposes of our audit are prepared at the branches and other offices ofthe Company;

(d) The Balance Sheet the Revenue Account the Profit and Loss Account and theReceipts and Payments Account dealt with by this Report are in agreement with the books ofaccount;

(e) 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 1938 and the Regulations and orders / directions issued by the IRDAI inthis behalf;

(f) In our opinion and to the best of our information and according to the explanationsgiven to us the accounting policies selected by the Company are appropriate and are incompliance with the Accounting Standards referred to in Section 133 of the Companies Act2013 read with Rule 7 of the Companies (Accounts) Rules 2014 to the extent they are notinconsistent with the accounting principles prescribed in the Regulations and orders /directions issued by the IRDAI in this behalf;

(g) In our opinion and to the best of our information and according to the explanationsgiven to us the Balance Sheet the Revenue Account the Profit and Loss Accountand the Receipts and Payments Account dealt with by this report comply with the AccountingStandards referred to in Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014 to the extent they are not inconsistent with theaccounting principles prescribed in the Regulations and orders/ directions issued by IRDAIin this regard; and

(h) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms ofSection 164 (2) of the Act.

(i) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(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 knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at March 31 2017 onits financial position in its financial statements – Refer schedule 16 (B) note 2 tothe Financial Statements.

ii. The Company has made provision as required under the applicable laws oraccounting standards for material foreseeable loses wherever applicable on long-termcontracts including derivative contracts as at March 31 2017 - Refer schedule 16 (C) note20 to the Financial Statements.

iii. There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company for the year ended March 31 2017.

iv The disclosure requirement as envisaged in Notification G.S.R 308 (E) dated March30 2017 is not applicable to the Company. Refer schedule 16 (C) note 19 to the FinancialStatements.

For Price Waterhouse Chartered Accountants LLP For G.M. Kapadia & Co.
Chartered Accountants Chartered Accountants
Firm Registration No. 012754N/N500016 Firm Registration No. 104767W
Anish P. Amin Rajen Ashar
Partner Partner
Membership No. 040451 Membership No. 048243
Place: Mumbai
Date : May 3 2017

Independent Auditors' Certificate

TO

THE MEMBERS OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

(Referred to in paragraph 12 of our Report on Other Legal and Regulatory Requirementsforming part of the Independent Auditors' Report dated May 3 2017)

This certificate is issued to comply 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 as amended from time to time including amendment brought byInsurance Laws (Amendment) Act 2015 (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 "Regulations")orders/directions issued by the Insurance Regulatory and Development Authority of India(the "IRDAI"). This includes collecting collating and validating data anddesigning implementing and monitoring of internal controls suitable for ensuringcompliance 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. Weconducted our examination in accordance with the Guidance Note on Audit Reports andCertificates for Special Purposes issued by the Institute of Chartered Accountantsof India (the ‘ICAI').

In accordance with the information and explanations given to us and to the bestof our knowledge and belief and based on our examination of the books of accountsand other records maintained by HDFC STANDARD LIFE INSURANCE COMPANY LIMITED (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 theyear ended March 31 2017 and have found no apparent mistake or material inconsistencywith the financial statements;

2. Based on management representations and the compliance certificate submitted to theBoard of Directors by the officers of the Company charged with compliance and thesame being noted by the Board nothing has come to our attention that causes us to believethat the Company has not complied with the terms and conditions of registration asper sub section 4 of section 3 of the Insurance Act 1938;

3. The Cash on hand balance as at March 31 2017 is Rs. Nil. We have verifiedthe cheques on hand to the extent considered necessary and securities relating toCompany's loans and investments as at March 31 2017 by actual inspection or on the basisof certificates/ confirmations received from the Custodians and/Depository Participantsappointed by the Company as the case may be. As at March 31 2017 the Companydoes 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 orindirectly applied in contravention of the provisions of the Insurance Act relatingto the application and investments of the Policyholders' Funds.

For Price Waterhouse Chartered Accountants LLP For G.M. Kapadia & Co.
Chartered Accountants Chartered Accountants
Firm Registration No. 012754N/N500016 Firm Registration No. 104767W
Anish P. Amin Rajen Ashar
Partner Partner
Membership No. 040451 Membership No. 048243
Place: Mumbai
Date : May 3 2017

Annexure A to Independent Auditors' Report

Referred to in paragraph 13 (i) of the Independent Auditors' Report of even dateto the members of HDFC Standard Life Insurance Company Limited on the financialstatements for the year ended March 31 2017.

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

1. We have audited the internal financial controls over financial reporting of HDFCStandard Life Insurance Company Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial informationas required under the Act.

Auditors' Responsibility

3. 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 deemed to be prescribedunder section 143 (10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is suficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisationsof management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorised acquisition use or dispositionof the Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. 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 theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

Other Matters

9. The actuarial valuation of liabilities for life policies in force andpolicies where premium is discontinued is required to be certified by the AppointedActuary as per the regulations and has been relied upon by us as mentioned inpara 9 and 11 of our audit report on the financial statements for the year ended March 312017. Accordingly our opinion on the internal financial controls over financialreporting does not include reporting on the operating effectiveness of themanagement's internal controls over the valuation and accuracy of the aforesaidactuarial valuation.

For Price Waterhouse Chartered Accountants LLP For G.M. Kapadia & Co.
Chartered Accountants Chartered Accountants
Firm Registration No. 012754N/N500016 Firm Registration No. 104767W
Anish P. Amin Rajen Ashar
Partner Partner
Membership No. 040451 Membership No. 048243
Place : Mumbai
Date : May 3 2017