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SBI Life Insurance Company Ltd.

BSE: 540719 Sector: Financials
NSE: SBILIFE ISIN Code: INE123W01016
BSE 00:00 | 22 Feb 558.85 -0.35
(-0.06%)
OPEN

575.00

HIGH

575.00

LOW

554.55

NSE 00:00 | 22 Feb 559.85 -2.05
(-0.36%)
OPEN

565.25

HIGH

570.00

LOW

556.75

OPEN 575.00
PREVIOUS CLOSE 559.20
VOLUME 6332
52-Week high 774.75
52-Week low 487.00
P/E 44.71
Mkt Cap.(Rs cr) 55,885
Buy Price 556.00
Buy Qty 53.00
Sell Price 558.85
Sell Qty 50.00
OPEN 575.00
CLOSE 559.20
VOLUME 6332
52-Week high 774.75
52-Week low 487.00
P/E 44.71
Mkt Cap.(Rs cr) 55,885
Buy Price 556.00
Buy Qty 53.00
Sell Price 558.85
Sell Qty 50.00

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 2018the 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 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 ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the 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 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 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 2018;

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 2018has 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 aseparate certificate dated April 26 2018 certifying the matters specified in paragraphs 3and 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 2018 and taken on record by the Board of Directors none of the Directors aredisqualified as on March 31 2018 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 thisreport.

(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 2 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 Refer Note 33of Part C of Schedule 16.

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

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 26 2018

Independent Auditors' Report

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

Report on directions and sub-directions issued by Comptroller and Auditor General ofIndia 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 2018.

2. The Company has written off bad debts amounting to Rs. 4324609/- towards agent'sbalances in FY 2017-18 as per the policy of the Company.

3. There is no inventory lying with third parties and the company has not receivedgifts / 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. The Company has adhered to the prescribed stop loss limits whenever applicable.

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 2018 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 2018 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.

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 2018 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 2018. 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 26 2018