ICICI_Prudential_Annual_Report_FY_2014

INSURANCE AAJ BADAL RAHA HAI STANDALONE FINANCIAL STATEMENTS Return Guarantee Fund II - ULIF 063 27/01/09 LRGF(T2) 105Industry At March 31, 2014 At March 31, 2013Financial and insurance activities Security name Asset type Market value % of assets Market value % of assetsFinancial and insurance activities totalHousing (` ‘000) held (` ‘000) heldHousing total 10.30% Tata Sons Limited 2014 NCD - - 45,402 8.93%OthersNet current assets 9.50% State Bank of India 2013 FD - - 38,564 7.59%Grand total 9.25% IDBI Bank Limited 2014 NCD - - 25,019 4.92%IndustryFinancial and insurance activities 9.50% IDBI Bank Limited 2013 FD - - 22,459 4.42%Financial and insurance activities total 8.50% Power Finance Corporation Limited 2014 NCD - - 19,869 3.91%Housing 9.90% ICICI Securities Primary Dealership Limited 2014 NCD -- 10,050 1.98%Housing totalOthers 9.81% Indian Railway Finance Corporation Limited 2017 NCD -- 9,416 1.85%Net current assetsGrand total 9.50% Oriental Bank Of Commerce 2013 FD - - 8,423 1.66%Industry 9.75% State Bank of Bikaner & Jaipur 2014 FD - - 1,550 0.31%Financial and insurance activities -- 180,752 35.57%Financial and insurance activities totalHousing 10.25% ICICI Home Finance Company Limited 2014 NCD - - 47,342 9.32%Housing totalOthers 10.20% LIC Housing Finance Limited 2014 NCD - - 22,212 4.37%Net current assetsGrand total 10.25% Housing Development Finance Corporation Limited 2017 NCD -- 10,352 2.04% 10.35% Housing Development Finance Corporation Limited 2017 NCD -- 3,117 0.61% -- 83,023 16.34% -- 197,693 38.90% -- 46,681 9.19% -- 508,149 100.00% Return Guarantee Fund III - ULIF 066 26/02/09 LRGF(T3) 105 At March 31, 2014 At March 31, 2013 Security name Asset type Market value % of assets Market value % of assets (` ‘000) held (` ‘000) held 10.30% Tata Sons Limited 2014 NCD - - 44,393 9.36% 9.25% IDBI Bank Limited 2014 NCD - - 34,026 7.17% 7.95% Infrastructure Development Finance Company Limited 2014 NCD -- 25,721 5.42% 9.50% State Bank of India 2013 FD - - 23,719 5.00% 9.50% Canara Bank 2013 FD - - 18,690 3.94% 9.50% Oriental Bank Of Commerce 2013 FD - - 18,632 3.93% 9.50% State Bank of Patiala 2013 FD - - 18,231 3.84% 10.85% HDFC Bank Limited 2023 NCD - - 13,926 2.93% 11.35% IDBI Bank Limited 2013 NCD - - 6,080 1.28% 9.50% IDBI Bank Limited 2013 FD - - 105 0.02% -- 203,523 42.89% 9.37% LIC Housing Finance Limited 2014 NCD - - 44,135 9.30% 8.25% ICICI Home Finance Company Limited 2014 NCD - - 42,533 8.96% 10.25% Housing Development Finance Corporation Limited 2017 NCD -- 26,914 5.67% 10.35% Housing Development Finance Corporation Limited 2017 NCD -- 1,039 0.22% -- 114,621 24.16% -- 108,728 22.91% -- 47,630 10.04% -- 474,502 100.00% Return Guarantee Fund IV - ULIF 069 31/03/09 LRGF(T4) 105 At March 31, 2014 At March 31, 2013 Security name Asset type Market value % of assets Market value % of assets (` ‘000) held (` ‘000) held 10.30% Tata Sons Limited 2014 NCD - - 18,161 9.73% 9.50% Canara Bank 2013 FD - - 17,445 9.34% 11.40% Infrastructure Development Finance Company Limited 2013 NCD -- 17,227 9.23% 9.50% Oriental Bank Of Commerce 2013 FD - - 16,804 9.00% 9.25% IDBI Bank Limited 2014 NCD - - 15,011 8.04% 9.50% State Bank of India 2013 FD - - 5,136 2.75% 9.50% Punjab National Bank 2014 FD - - 4,300 2.30% 9.50% State Bank of Patiala 2013 FD - - 1,423 0.76% -- 95,507 51.15% 9.50% Housing Development Finance Corporation Limited 2014 NCD -- 17,021 9.12% 11.08% LIC Housing Finance Limited 2018 NCD - - 12,931 6.93% 10.20% LIC Housing Finance Limited 2014 NCD - - 5,048 2.70% -- 35,000 18.75% -- 35,469 19.00% -- 20,730 11.10% -- 186,706 100.00%58 Receipts & Payments Account 59 Schedules 100 Statement Pursuant to Section 212 of the Companies Act, 1956 101 Annexures 299

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014 This page is intentionally left blank300 44 Management Report 50 Independent Auditors’ Report and Certificates 54 Revenue Account 56 Profit & Loss Account 57 Balance Sheet

CONSOLIDATED FINANCIAL STATEMENTS302-338 Independent Auditors’ Report 302 Consolidated Revenue Account 303 Consolidated Profit & Loss Account 305 Consolidated Balance Sheet 306 Consolidated Receipts & Payments Account 307 Schedules forming part of Consolidated Financial Statements 308

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014INDEPENDENT AUDITORS’ REPORTTo the Members ofICICI Prudential Life Insurance Company LimitedREPORT ON THE CONSOLIDATED FINANCIAL effectiveness of the Company’s internal control. An audit also includesSTATEMENTS evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, asWe have audited the accompanying consolidated financial statements of well as evaluating the overall presentation of the consolidated financialICICI Prudential Life Insurance Company Limited (the “Company”) and its statements.subsidiary, which comprise the consolidated Balance Sheet as at March31, 2014, the related consolidated Revenue Account (also called the We believe that the audit evidence we have obtained is sufficient and“Policyholders’ Account” or the “Technical Account”), the consolidated appropriate to provide a basis for our audit opinion.Profit and Loss Account (also called the “Shareholders’ Account” or “Non-Technical Account”) and the consolidated Receipts and Payments Account OPINIONfor the year then ended, and a summary of significant accounting policiesand other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the consolidated financial statements areMANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED prepared in accordance with the requirements of the Insurance Act, theFINANCIAL STATEMENTS IRDA Act, the IRDA Financial Statements Regulations and the Companies Act, 1956 to the extent applicable and in the manner so required, and giveManagement is responsible for the preparation of these consolidated a true and fair view in conformity with the accounting principles generallyfinancial statements that give a true and fair view of the consolidated accepted in India, as applicable to insurance companies:Balance sheet, the related consolidated Revenue Account, the consolidatedProfit and Loss Account and the consolidated Receipts and Payments (a) in the case of the consolidated Balance Sheet, of the state of affairsAccount of the Company in accordance with accounting principles generally of the Company as at March 31, 2014;accepted in India, including the provisions of The Insurance Act, 1938 (the“Insurance Act”), the Insurance Regulatory and Development Authority (b) in the case of consolidated Revenue Account, of the net surplus forAct, 1999 (the “IRDA Act”), the Insurance Regulatory and Development the year ended on that date;Authority (Preparation of Financial Statements and Auditor’s Report ofInsurance Companies) Regulations, 2002 (the “IRDA Financial Statements (c) in the case of consolidated Profit and Loss Account, of the profit forRegulations”), orders/directions issued by the Insurance Regulatory and the year ended on that date; andDevelopment Authority (the “IRDA”) in this regard, read with the AccountingStandards notified under the Companies Act, 1956 read with the General (d) in the case of the consolidated Receipts and Payments Account, ofCircular 15/2013 dated September 13, 2013, of the Ministry of Corporate the receipts and payments for the year ended on that date.Affairs, in respect of Section 133 of the Companies Act, 2013 to the extentapplicable. This responsibility includes the design, implementation and OTHER MATTERSmaintenance of internal control relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from 1. The actuarial valuation of liabilities for life policies in force is thematerial misstatement, whether due to fraud or error. responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities for life policiesAUDITOR’S RESPONSIBILITY in force and for policies in respect of which premium has been discontinued but liability exists as at March 31, 2014 has been dulyOur responsibility is to express an opinion on these consolidated financial certified by the Appointed Actuary and in his opinion, the assumptionsstatements based on our audit. We conducted our audit in accordance with for such valuation are in accordance with the guidelines and normsthe Standards on Auditing issued by the Institute of Chartered Accountants issued by the Insurance Regulatory Development Authority (“IRDA”)of India. Those Standards require that we comply with ethical requirements (“Authority”) and the Actuarial Society of India in concurrence withand plan and perform the audit to obtain reasonable assurance about the Authority. We have relied upon Appointed Actuary’s certificatewhether the consolidated financial statements are free from material in this regard for forming our opinion on the valuation of liabilitiesmisstatement. for life policies in force and for policies in respect of which premium has been discontinued but liability exists on consolidated financialAn audit involves performing procedures to obtain audit evidence about statements of the Company.the amounts and disclosures in the consolidated financial statements.The procedures selected depend on the auditor’s judgment, including 2. We did not audit total assets of ` 291,012 thousand as atthe assessment of the risks of material misstatement of the consolidated March 31, 2014, total revenues of ` 25,318 thousand and netfinancial statements, whether due to fraud or error. In making those cash outflow amounting to ` 30 thousand for the year endedrisk assessments, the auditor considers internal control relevant to the March 31, 2014 included in the accompanying consolidated financialCompany’s preparation and fair presentation of the consolidated financial statements in respect of a subsidiary whose financial statements andstatements in order to design audit procedures that are appropriate in the other financial information have been audited by other auditors andcircumstances, but not for the purpose of expressing an opinion on the whose report have been furnished to us. Our opinion, in so far as it relates to the affairs of such subsidiary is based solely on the report of other auditors. Our opinion is not qualified in respect of this matter.For S. R. BATLIBOI & CO. LLP For S. B. Billimoria & Co.Chartered Accountants Chartered AccountantsICAI Firm Registration No: 301003E ICAI Firm Registration No: 101496Wper Shrawan JalanPartner Sanjiv V. PilgaonkarMembership No: 102102 PartnerPlace : Mumbai Membership No: 39826Date : April 22, 2014 Place : Mumbai Date : April 22, 2014302 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED REVENUE ACCOUNTfor the year ended March 31, 2014 FORM A-RAICICI Prudential Life Insurance Company LimitedRegn.No. 105 dated 24.11.2000POLICYHOLDERS’ ACCOUNT (TECHNICAL ACCOUNT)Particulars Schedule Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health Group 12,184,130 Total (2,081) 2,281,257 13,997,513Premiums earned (net of service tax) 1 - 1,585,685 24,433,749 - 189,443 62,692,450 (110) 1,991,223 4,931,045 124,286,495(a) Premium (26) (749,489) - (42,382) (330,026) - (335,179) (675) (1,459,968)(b) Reinsurance ceded 2 12,182,049 - - - -(c) Reinsurance accepted 3 2,281,257 - 13,997,403 - -Sub-total 4 3,227,242 1,585,659 23,684,260 147,061 62,362,424 1,656,044 4,930,370 122,826,527Income from investments 333,354 1,296,386 7,518,089(a) Interest, dividend & rent - Gross 16 1,469,132 2,910,319 66,719 49,112 11,232,350 17,023,566 144,297 3,846,247 31,693,174(b) Profit on sale/redemption of investments (322,489) 167,151 239,568 12,489 23,274,962 (4,990,958) 152,956 1,930,782 43,201,547(c) (Loss) on sale/redemption of investments - (47,622) (71,737) (50,739) (8,230,536) 9,706,779 (119,390) (1,214,805) (15,048,276)(d) Transfer/gain on revaluation/change in fair value - - - - 18,410,853 418,898 29,126,386(e) Accretion of discount/(amortisation of premium) (net) 32,660 123,045 (10,488) - 1,324,059 990,333 11,448 589,856 3,194,606Sub-total 3,270,767 4,922 7,102 46,011,688 30,247,809 608,209 711,525 92,167,437Other income 1,711,706 3,067,662 1,317,288 68,703 5,863,605Contribution from the Shareholders’ account - -Fees and charges 27,611 - 346,958 599,565 - - - - - 946,523Miscellaneous income 11,620 650 27,263 - 183 671 6,110 - - 56,378Sub-total 39,231 37,805 23,934 150 33,766 6,110 1,696 820 116,093Total (A) 15,492,047 38,455 398,155 192 333 34,437 44,251,322 1,696 820 1,118,994Commission 1,520,049 3,335,820 27,150,077 599,757 216,097 108,408,549 137,874 2,265,949 10,794,795 216,112,958Operating expenses related to insurance business 3,457,729 3,376 2,131,500 4,198,302 6,004 2,424,515 1,269,831 50,199 67 6,274,850Provision for doubtful debts 1,144 29,990 3,336,802 31,281 7,548,935 (40,113) 281,630 172,712 16,168,605Bad debts written off 3,238 (45) 14,294 1,266 (1,398) (24,593) 40,380 (360) - (51,202)Provisions (other than taxation) 20 3,400 39,695 1,253 32,577 838 - 81,844(a) For diminution in the value of investments (net) - Refer 58,634 - 5,820 20,537 (131) -- - - 84,991note 3.6 of schedule 16 - 138 -(b) Others - - - - - 1,105,769 - - -Service tax charge on linked charges 5,040,794 - - - - 1,728,767 2,513,741 135,237 96,341 3,066,114Total (B) 2,892,201 39,161 5,506,533 37,140 11,710,201 52,103,528 467,544 269,120 25,625,202Benefits paid (net) 85,775 4,449,258 1,134,462 - 34,185 50,731,467 273,604 8,105,814 120,739,625Interim bonus paid 7,995 - - - -Change in valuation of policy liabilities 6,048,533 40,968 - - - 93,770(a) Policy liabilities (non-unit/mathematical reserves)(gross) - 1,015,106 (264,227)(b) Amount ceded in reinsurance - (1,685,979) 21,029,070 - (190,995) 1,213,978 - 38,570 (11,389) 29,319,789(c) Amount accepted in reinsurance - - (1,470,917) - - - - - (1,470,917)(d) Fund reserve - - 3,142,228 - - - -(e) Funds for discontinued policies - - - - (17,545,525) -Total (C) 9,026,509 - - - - 36,020,218 1,761 1,186,288 2,128,639 21,789,620Surplus/(deficit) (D) =(A)-(B)-(C) 1,424,744 - - 6,977,091 - - 6,978,852Provision for taxation 2,771,274 20,692,615 - (156,810) 94,942,754 34,295,537 177,450,739(a) Current tax credit/(charge) - 525,385 950,929 335,767 1,755,594 7,442,044 1,498,462 10,223,064 13,037,017(b) Deferred tax credit/(charge) - Refer note 3.8 of (384,181) 4,157,334 299,943 302,611 - -schedule 16 1,040,563 -- -- - -- -Surplus/(deficit) after tax -- - - (53,186)Appropriations 188,637 - 7,442,044 - - (437,367)Transfer to Shareholders’ account -Transfer to other reserves 525,385 950,929 - 335,767 1,702,408 8,813,558 299,943 302,611 12,599,650Balance being funds for future appropriations 851,926 -Total 1,040,563 115,355 - - 335,767 2,573,560 312,315 302,611 12,641,803Details of surplus before tax - - - - - (1,371,514) - - -(a) Interim bonuses paid 85,775 950,929 - - 7,442,044 -(b) Allocation of bonus to policyholders’ 1,611,957 410,030 950,929 - (871,152) (12,372) (42,153)(c) Surplus shown in the Revenue Account 1,424,744 525,385 335,767 1,702,408 - 299,943 302,611 12,599,650Total surplus 3,122,476 - -Funds for future appropriations 7,995 - - - - 7,442,044 - - 93,770Opening balance as at April 1, 2013 905,677 1,030,202 - - - - 7,442,044 - - 2,642,159Add: Current period appropriation 851,926 950,929 - 335,767 1,755,594 299,943 302,611 13,037,017Balance carried forward to Balance Sheet 1,757,603 525,385 950,929 335,767 1,755,594 1,988,575 299,943 302,611 15,772,946Significant accounting policies & notes 1,563,582 - (1,371,514) - 855,323 - - - 1,263,748 617,061 69,221 - 5,082,544 410,030 950,929 - (871,152) (12,372) - (42,153) 1,265,353 950,929 - 392,596 56,849 - 5,040,391The schedules and accompanying notes referred to herein form an integral part of the Consolidated Revenue Account.As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Consolidated RevenueAccount as expenses.As per our report of even date attached. For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner Partner Executive DirectorMembership No. 102102 Membership No. 39826 Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014307 Consolidated Receipts & Payments Account 308 Schedules 303

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014CONSOLIDATED REVENUE ACCOUNTfor the year ended March 31, 2013 FORM A-RAICICI Prudential Life Insurance Company LimitedRegn.No. 105 dated 24.11.2000POLICYHOLDERS’ ACCOUNT (TECHNICAL ACCOUNT)Particulars Schedule Par Life Par Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) 1 Pension Non Par Pension Health GroupPremiums earned (net of service tax) Total(a) Premium 2 2,540,797(b) Reinsurance ceded 3 7,809,797 3,100,891 25,092,400 - 216,982 55,175,774 27,327,274 2,115,208 12,003,257 135,382,380(c) Reinsurance accepted 4 (5,197) (33) (645,121) - (45,228) (203,628) (149) (309,749) (903) (1,210,008)Sub-total - - - - - -Income from investments 16 2,540,797 - - -(a) Interest, dividend & rent - Gross 7,804,600 3,100,858 24,447,279 171,754 54,972,146 27,327,125 1,805,459 12,002,354 134,172,372(b) Profit on sale/redemption of investments 1,054,784(c) (Loss) on sale/redemption of investments 2,784,259 1,451,290 1,403,921 65,628 17,115 9,946,347 7,735,540 110,524 3,488,534 27,992,314(d) Transfer/gain on revaluation/change in fair value 309,406 257,173 294,643 (2,873) 5,367 19,466,486 13,075,347 98,897 1,729,968 35,302,915(e) Accretion of discount/(amortisation of premium) (net) (50,953) (24,474) (21,854) - (181) (8,739,042) (7,200,772) (76,494) (430,867) (16,547,510)Sub-total - - - 21,714 4,504,296 7,163,496 134,919 11,980,043Other income 68,941 175,985 50,907 - 1,086,350 17,912 177,332 3,175,361Contribution from the Shareholders’ account 1,139,253 440 26,264,437 955,362 285,758 797,750 61,903,123Fees and charges 3,111,653 1,859,974 1,727,617 22,741 21,728,973 5,762,717Miscellaneous income 118,027Sub-total - - 4,751,303 - 543,128 - - - - 5,412,458Total (A) 21,768 602 12,523 267 1,765 - - - 36,925Commission 17,791 281 69,543 1,095 603 97,694 8,436 5,546 2,786 203,775Operating expenses related to insurance business 39,559 883 119,122 99,459 8,436 5,546 2,786Provision for doubtful debts 10,955,812 4,961,715 4,833,369 3,799,172 543,998 81,336,042 49,064,534 2,096,763 17,767,857 5,653,158Bad debts written off 685,178 6,162 31,008,265 738,493 2,000,362 344,979 88,219 21 201,728,653Provisions (other than taxation) 1,548,587 34,005 1,233 6,142,480 1,457,947 458,964 172,150(a) For diminution in the value of investments (net) - Refer note 10,382 139 4,519,058 97,403 8,956 11,272 7,620 1,123 - 7,654,168 1,388 15 7,166,175 53,363 9,676 1,427 305 - 17,131,0743.6 of schedule 16 176(b) Others 22,838 20 39 53,589Service tax charge on linked charges 3,836 40 16,707Total (B) -Benefits paid (net) 58,461 12,077 28,205 -- - - - 98,743Interim bonus paid -Change in valuation of policy liabilities - - - - - - - - - -(a) Policy liabilities (non-unit/mathematical reserves)(gross) - - - 98,832 - 1,672,587 1,288,221 130,834 89,493 3,181,135(b) Amount ceded in reinsurance 2,303,996 52,398 11,740,112 822,403 62,398 9,836,377 3,100,194 679,445 261,664 28,135,416(c) Amount accepted in reinsurance 4,089,712 4,715,274 823,637 - 56,150 60,155,842 51,039,166 234,595 10,941,804 132,878,583(d) Fund reserve 47,369 1,323 - -(e) Funds for discontinued policies 2,896,387 - - - - 48,692Total (C) -Surplus/(deficit) (D) =(A)-(B)-(C) 3,928,606 (315,163) 20,612,547 - 704,849 507,475 3,818 (7,388) (9,838) 28,321,293Provision for taxation - - (1,425,291) - - - - - - (1,425,291)(a)Current tax credit/(charge) - - - - - - - -(b)Deferred tax credit/(charge) - Refer note 3.8 of schedule 16 - - - - -Surplus/(deficit) after tax - - - 3,718,790 - 2,266,932 (14,222,417) 1,024,836 6,328,753 (4,601,896)Appropriations - (18,450) 3,636,635 - - -Transfer to Shareholders’ account 8,065,687 4,401,434 20,010,893 760,999 66,566,884 3,636,635Transfer to other reserves 586,129 507,883 (742,740) - (84,904) 4,932,781 36,820,567 1,252,043 17,260,719 158,858,016Balance being funds for future appropriations 18,450 9,143,773 165,275 245,474 14,735,221TotalDetails of surplus before tax - - - - - - - - - -(a) Interim bonuses paid (234,428) - 742,740 84,904 (794,594) - (22,344) (33,186) (238,458)(b) Allocation of bonus to policyholders’ 351,701 507,883 - 4,138,187 9,143,773 142,931 212,288 14,496,763(c) Surplus shown in the Revenue Account - - -Total surplus -Funds for future appropriations 127,548 126,938 - - - 5,913,266 10,552,638 73,710 212,288 17,006,388Opening Balance as at April 1, 2012 - - - -- - - - -Add: Current year appropriations - - - (1,775,079) -Balance carried forward to Balance Sheet 224,153 380,945 - - - 4,138,187 (1,408,865) 69,221 (2,509,625) 351,701 507,883 - 9,143,773 142,931 212,288 14,496,763Significant accounting policies & notes - 47,369 1,323 - -- - - - 48,692 1,100,566 1,141,120 - - -- - - - 2,241,686 - - - 4,932,781 9,143,773 165,275 245,474 15,581,315 586,129 507,883 - - - 4,932,781 9,143,773 165,275 245,474 17,871,693 1,734,064 1,650,326 681,524 474,378 - - 3,038,827 3,397,440 - - 7,592,169 224,153 380,945 - - (1,775,079) (1,408,865) 69,221 - (2,509,625) 905,677 855,323 - - 1,263,748 1,988,575 69,221 - 5,082,544The Schedules and accompanying notes referred to herein form an integral part of the Consolidated Policyholders’ Revenue Account.As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Consolidated Policyholders’Revenue Account as expenses.As per our report of even date attached. For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner PartnerMembership No. 102102 Membership No. 39826 Executive Director Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014304 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED PROFIT & LOSS ACCOUNTfor the year ended March 31, 2014 FORM A-PLICICI Prudential Life Insurance Company LimitedRegn.No. 105 dated 24.11.2000SHAREHOLDERS’ ACCOUNT (NON-TECHNICAL ACCOUNT)Particulars Schedule March 31, 2014 (` ‘000) 12,641,803 March 31, 2013Amounts transferred from Policyholders’ account (Technical account) 3,614,295 17,006,388Income from investments 1,432,350 (1,318,724) 3,017,109(a) Interest, dividend & rent - Gross 1,065,171 169,417 (162,617)(b) Profit on sale/redemption of investments 101,929 16,641,070 253,310(c) (Loss) on sale/redemption of investments 150,114 4,867(d) Accretion of discount/(amortisation of premium) (net) - 21,184,228 76,669Other income 263,006 - -Total (A) - 946,523 -Expenses other than those directly related to the insurance business 3A 1,359,643 5,412,458 15,281,427 5,489,127Bad debts written-off 15,695,101 -Provisions (other than taxation) 374,470 - 15,655,897 (736,751)(a) For diminution in value of investments (net) - Refer note 3.6 of schedule 16 14,958,350 (11,645,094)(b) Provision for doubtful debts 7,931,517 (19,467,579) 3,001,437 3,429,335Contribution to Policyholders’ account (Technical account) 1,858,055 1,413,959 1,566,656 796,632Total (B) 1,495,939 (10,346,862)Profit before tax (11,645,094) 10.96Provision for taxation 10.93 10.47 10.00 10.44(a) Current tax credit/(charge) 10.00(b) Deferred tax credit/(charge) - Refer note 3.8 of schedule 16Profit after taxAppropriations(a) Balance at the beginning of the year(b) Interim dividends paid during the year - Refer note 3.18 of schedule 16(c) Proposed final dividend - Refer note 3.18 of schedule 16(d) Dividend distribution tax(e) Transfer to general reserve - Refer note 3.18 of schedule 16Loss carried to Balance Sheet - Refer note 3.19 of schedule 16Earnings per equity share - Refer note 3.16 of schedule 16Basic earnings per equity share `Diluted earnings per equity share `Nominal value per equity share `Significant accounting policies & notes 16The Schedules and accompanying notes referred to herein form an integral part of the Consolidated Profit and Loss Account.As per our report of even date attached. For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner Partner Executive DirectorMembership No. 102102 Membership No. 39826 Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014307 Consolidated Receipts & Payments Account 308 Schedules 305

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014CONSOLIDATED BALANCE SHEETat March 31, 2014 FORM A-BSICICI Prudential Life Insurance Company LimitedRegn.No. 105 dated 24.11.2000 Particulars Schedule (` ‘000) At March 31, 2014 At March 31, 2013 Sources of funds Shareholders’ funds : 5 14,292,557 14,289,392 Share capital Share application money 984 - Reserve and surplus Credit/[debit] fair value change account 6 33,663,847 33,645,103 Deferred tax liability - Refer note 3.8 of schedule 16 Sub-total 1,860,657 477,588 Borrowings Policyholders’ funds : 196 201 Credit/[debit] fair value change account Revaluation reserve - Investment property- Refer note 3.5 of schedule 16 49,818,241 48,412,284 Policy liabilities (A)+(B)+(C) 7 -- Non unit liabilities (mathematical reserves) (A) 4,794,024 2,478,035 Provision for linked liabilities (fund reserves) (B) 668,879 704,479 (a) Provision for linked liabilities (b) Credit/[debit] fair value change account (Linked) 740,779,201 684,161,856 138,124,872 110,276,000 Funds for discontinued policies (C) (a) Discontinued on account of non-payment of premium 591,373,652 569,584,031 (b) Other discontinuance 523,002,342 530,343,030 (c) Credit/[debit] fair value change account 68,371,310 39,241,001 Total linked liabilities (B)+(C) Sub-total 11,280,677 4,301,825 Funds for Future Appropriations 11,285,434 4,302,659 - Linked - Non linked - - Sub-total (4,757) (834) Total 602,654,329 573,885,856 Application of funds 746,242,104 687,344,370 Investments - Shareholders’ 449,992 1,322,418 - Policyholders’ 4,590,399 3,760,126 Asset held to cover linked liabilities 5,040,391 5,082,544 Loans 801,100,736 740,839,198 Fixed assets - net block Deferred tax asset - Refer note 3.8 of schedule 16 8 53,522,247 49,190,278 Current assets - Cash and bank balances 8A 144,567,076 112,869,878 - Advances and other assets Sub-total (A) 8B 603,104,321 575,208,274 Current liabilities Provisions 9 119,076 87,469 Sub-total (B) Net current assets (C) = (A-B) 10 2,017,164 1,723,984 Miscellaneous expenditure (to the extent not written-off or adjusted) Debit balance in Profit & Loss Account (Shareholders’ account) - Refer note 3.19 of schedule 16 15,295 78,197 Total Contingent liabilities - Refer note 3.1 of schedule 16 11 1,934,431 3,247,677 Significant accounting policies & notes 12 9,637,447 9,854,128The Schedules and accompanying notes referred to herein form an integral part of the Consolidated Balance Sheet. 11,571,878 13,101,805As per our report of even date attached. 13 16,070,228 18,432,518 14 3,646,186 1,753,150 19,716,414 20,185,668 (8,144,536) (7,083,863) 15 - - 5,900,093 8,764,981 801,100,736 740,839,198 1,987,821 1,785,214 16 For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner PartnerMembership No. 102102 Membership No. 39826 Executive Director Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014306 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED RECEIPTS & PAYMENTS ACCOUNTfor the year ended March 31, 2014ICICI Prudential Life Insurance Company LimitedRegn.No. 105 dated 24.11.2000 (` ‘000)Sr Particulars FY2014 FY2013No.A Cash flows from operating activities Cash receipts from customers: (6,388,108) 146,538,103 (7,223,531) 160,089,952 (120,826,433) 581 (133,363,388) 608 Premium and other receipts (42,225,997) (45,292,270) Tax refund (170,231,404) (186,626,066) Cash paid towards operating activities: (704,627) (23,692,720) (456,054) (26,535,506) Commission paid (3,036) 59,178 Policy benefits paid (83,203) (751,404) (325,598) Other expenses (956,429,642) (350,001) (985,393,779) Reinsurance premium ceded (net of recovery amount) (786,859) Advances and deposits 35,455 (31,607) (345,896) 8,271 Taxes paid 986,922,407 20,298 962,981,607 Net cash from operating activities (A) (36,374) - 28,651,086 22,546,252B Cash flows from investing activities 6,294,042 6,239,115 (4,381,580) 9,722,257 Purchase of fixed assets Sale of fixed assets (14,150) (11,931) Purchase of investments 60,222,778 15,766,194 Loan Sale of investments 4,149 901 Advance paid towards investment property 18,744 5,588 Interest & rent received (net of tax deducted at source) (1,414,650) (1,000,194) Dividend received (7,931,517) (3,429,335) Investments in money market instruments and in liquid mutual funds (net) (1,588,381) (718,581) Expense related to investment (10,911,655) (5,141,621) Net cash from investing activities (B) 490 169 25,618,893 (15,910,764)C Cash flows from financing activities 16,031,351 41,650,244 31,942,115 Proceeds from issuance of share capital 16,031,351 Share premium on capital issued Final dividend 1,689,481 Interim dividend paid 1,643,990 Dividend distribution tax paid Net cash used in financing activities (C)D Effect of foreign exchange rates on cash and cash equivalents (net) (D)E Net increase In cash and cash equivalents (A+B+C+D)F Cash and cash equivalents at beginning of the year 1,515,512 1,436,256G Cash and cash equivalents at end of the year Note: 38,698,476 12,697,880 Cash and cash equivalents at the end of the year 41,650,244 16,031,351 - Cash (including cheques in hand and stamps in hand) - Bank balances and Money at call and short notice [Including bank balance for linked business of ` 1,017,337 thousands ( ` 85,794 thousands at March 31, 2013)] - Other short term liquid investment. [Forming part of investments in financials] TotalFor Cash and cash equivalents - Refer note 2.19 of schedule 16The above Receipts and payments account has been prepared as prescribed by Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of InsuranceCompanies) Regulations, 2002 under the “Direct method” in accordance with Accounting Standard 3 Cash Flow Statements notified under Companies (Accounting Standard) Rules, 2006.As per our report of even date attached For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner PartnerMembership No. 102102 Membership No. 39826 Executive Director Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014307 Consolidated Receipts & Payments Account 308 Schedules 307

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULESforming part of consolidated financial statementsSCHEDULE - 1Premium (net of service tax)For the year ended March 31, 2014Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked Group (` ‘000) Non Par Pension HealthFirst year premiums 6,034,010 6 4,808,718 4,513 20,792,023 186,881 509,043 TotalRenewal premiums 6,150,120 1,585,679 18,437,975 - 184,930 40,972,797 516,552 1,804,342 4,342,683Single premiums 1,187,056 - 13,212,047 32,851,746Total premium - - 24,433,749 2,281,257 - 927,630 - 79,319 86,690,573Premium income from 12,184,130 1,585,685 2,281,257 189,443 62,692,450 268,914 1,991,223 4,931,045 4,744,176business written: 13,997,513 124,286,495- In India- Outside India 12,184,130 1,585,685 24,433,749 2,281,257 189,443 62,692,450 13,997,513 1,991,223 4,931,045 124,286,495Total premium - - -- - - -- -- 12,184,130 1,585,685 24,433,749 2,281,257 189,443 62,692,450 13,997,513 1,991,223 4,931,045 124,286,495For the year ended March 31, 2013Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked Group (` ‘000) Non Par Pension HealthFirst year premiums 2,090,030 921,615 13,260,687 11,208 17,238,295 451,853 7,597,539 TotalRenewal premiums 5,719,767 2,179,276 8,915,020 - 205,774 37,342,024 270,042 1,663,355 4,405,718Single premiums 2,916,693 - 26,865,294 41,841,269Total premium - - 25,092,400 2,540,797 - 595,455 - - 87,296,228Premium income from 7,809,797 3,100,891 2,540,797 216,982 55,175,774 191,938 2,115,208 12,003,257 6,244,883business written: 27,327,274 135,382,380- In India 7,809,797 3,100,891 25,092,400 2,540,797 216,982 55,175,774 27,327,274 2,115,208 12,003,257 135,382,380- Outside India - - --Total premium - - -- - - 7,809,797 3,100,891 25,092,400 2,540,797 216,982 55,175,774 27,327,274 2,115,208 12,003,257 135,382,380Note: Refer schedule 16 note 2.3.1 for accounting policy on premium recognition.308 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSSCHEDULE - 2Commission expensesFor the year ended March 31, 2014Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health Group TotalCommission 1,441,015Direct – First year premiums 1,297,549 - 686,875 - 1,210 1,912,818 17,828 26,755 6 4,697,181 222,500 3,376 3,610 - 4,794 501,356 119,300 23,444 - 1,561,645 – Renewal premiums - 1,266 10,341 61 16,024 – Single premiums - 2,131,500 1,266 - 746 - 67 6,274,850Total 1,520,049 3,376 - - 6,004 2,424,515 137,874 50,199 --Add: Commission on re- - -insurance accepted - - - - - - --Less: Commission on re- -insurance ceded - 2,131,500 1,266 -- - - 67 6,274,850Net commission 1,520,049Break-up of the 3,376 590,416 897 6,004 2,424,515 137,874 50,199commission by distribution 1,221,035 350network 741,134 2,836 19 4,301 443,108 63,925 45,140 6 1,891,763Individual agents 626,854 526 320,049 1,266 1,450 1,950,262 54,421 2,346 - 3,857,244Corporate agents 152,061 14 2,131,500 19,528 2,713 61 525,843Brokers 1,520,049 253 31,145 137,874 50,199 67 6,274,850Total commission 3,376 6,004 2,424,515For the year ended March 31, 2013Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health Group TotalCommission - -Direct – First year premiums 490,077 66 4,186,566 1,233 2,741 1,546,120 17,258 61,783 21 6,304,632 1,233 6,215 449,344 327,186 26,436 - 1,339,576 – Renewal premiums 195,101 6,096 329,198 - 4,898 - 9,960 - 535 - – Single premiums - - 3,294 - 8,956 2,000,362 344,979 88,219 21 7,654,168 - --Total 685,178 6,162 4,519,058 1,233 - - - --Add: Commission on re- - -- 500insurance accepted 694 21 7,654,168 39Less: Commission on re- - -- 1,233 - - --insurance cededNet commission 685,178 6,162 4,519,058 8,956 2,000,362 344,979 88,219Break-up of thecommission by distributionnetworkIndividual agents 510,414 4,808 1,419,693 6,642 577,541 172,973 77,576 21 2,770,168 1,933 1,374,903 131,793 5,559 - 4,043,843Corporate agents 128,125 1,337 2,399,499 40,213 5,084 - 840,157 381 47,918 344,979 88,219Brokers 46,639 17 699,866 8,956 2,000,362 21 7,654,168Total commission 685,178 6,162 4,519,058Note: Refer schedule 16 note 2.4 for accounting policy on acquisition cost.307 Consolidated Receipts & Payments Account 308 Schedules 309

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE - 3Operating expenses related to insurance businessFor the year ended March 31, 2014 Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health GroupParticulars 1,573,671 19,815 1,628,252 16,653 3,023,471 165,230 Total 51,735 244 59,868 12,301 1,039 178,810 611,013 76,304Employees’ remuneration and welfare benefits 236,068 3 139,147 638 182,587 28,961 4,511 13,980 7,126,710Travel, conveyance and vehicle running expenses 144,621 800 162,909 245 438,006 18,426 12,656 1,823 339,786Agents training, recruitment and incentives 40,013 846 31,127 1,095 1,371 156,603 69,810 10,284 9,612 592,050Rents, rates and taxes 9,418 157 12,002 2,450 16,477 47,908 3,934 3,216 839,863Repairs 126,011 116,230 603 257,721 7,838 1,025 32,940 284,462Printing and stationery 154,620 2,163 110,403 212 273 210,723 85,518 13,275 1,561 80,364Communication expenses 3,247 1,519 8,843 234 3,930 5,812 64,064 9,994 7,881 607,857Legal and professional charges 1,448 2,097 1,175 564,010Medical fees - 2,709 103 45 237 19,551Auditors' fees, expenses etc : 89 283 -(a) as auditor - 11,871(b) as advisor or in any other capacity, in respect of 2,920 43 2,388 57 50 4,657 1,473 - - (i) Taxation matters - -- - -- - - - - (ii) Insurance matters - -- - -- - 6 - - (iii) Management services; and - -- - -- - 7,427 - -(c) in any other capacity (for certification) 36 - 38 - 2 93 50 1,521 - 225Advertisement and publicity 183,745 30 231,473 1,374 377 541,513 95,348 1,013 1,062,300Interest and bank charges 13,440 461 28,381 2,587 251 71,694 21,350 10,962 7,986 147,671Others 2,307- Administration support expenses 433,689 - 325,210 5,169 192 1,446,103 50,664 5,683 - 2,271,989- Business conferences and meetings 132,472 2 56,736 197 202 162,812 13,221 4,193 396 368,345- Information technology cost 113,083 725 69,980 1,519 144,433 26,839 3,743 (129) 364,668- Office running expenses 58,576 356 63,030 2,535 676 162,971 31,840 4,907 3,173 325,848- Data entry related expenses 34,065 727 32,967 1,033 1,142 65,247 25,221 4,593 2,876 166,480- Miscellaneous expenses 53,868 244 159,863 344 186,230 57,610 13,921 4,484 470,984Depreciation 89,064 478 83,030 492 707 260,165 23,402 281,630 5,314 468,213Service tax expenses 1,377 14,925 3,434 (495) 32,807 (10,770) 45 55,358Total 3,367 29,990 3,336,802 1,460 31,281 1,269,831 172,712 3,457,729 7,548,935 16,168,605 181 39,695For the year ended March 31, 2013 Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health GroupParticulars 786,591 22,541 3,415,306 26,281 2,431,814 256,033 Total 21,397 301 130,017 7,439 704 167,881 681,261 64,103Employees’ remuneration and welfare benefits 126,659 470 923,478 271 485,566 34,537 7,608 12,719 7,691,369Travel, conveyance and vehicle running expenses 81,841 324,271 352 1,300 413,582 86,048 23,122 3,407 375,435Agents training, recruitment and incentives 27,855 1,237 97,156 3,170 131,237 93,966 33,998 10,562Rents, rates and taxes 11,730 478 18,330 1,188 1,052 39,807 37,313 9,867 3,296 1,650,402Repairs 83,753 450 160,827 399 274,148 27,588 2,515 34,867 963,815Printing and stationery 56,571 152,586 79 878 123,194 125,019 18,399 1,353 308,653Communication expenses 2,744 2,690 20,184 470 6,249 7,859 42,169 9,566 3,771 136,244Legal and professional charges 838 588 2,077 3,391 672,908Medical fees - 142 164 96 391,360Auditors' fees, expenses etc : 327 339 34,907(a) as auditor(b) as advisor or in any other capacity, in respect of 1,495 21 3,926 24 59 3,772 933 - - 10,569 - (i) Taxation matters - -- - - - - - - - (ii) Insurance matters - -- - - - - 9 - - (iii) Management services; and - -- - - - - 13,345 - -(c) in any other capacity (for certification) 34 - 78 1 1 82 20 2,132 - 225Advertisement and publicity 60,404 712 517,741 363 1,049 578,348 132,620 661 1,305,243Interest and bank charges 6,506 506 21,824 2,836 176 55,612 30,127 12,775 16,263 135,982Others 3,915- Administration support expenses 52,667 - 388,431 550 263 529,012 16,012 10,036 - 999,710- Business conferences and meetings 38,652 152 335,363 62 690 139,698 29,293 10,344 5 547,830- Information technology cost 44,438 911 98,336 657 2,348 123,778 41,144 5,585 - 321,648- Office running expenses 29,988 529 103,800 415 1,230 129,571 40,873 6,454 2,891 319,641- Data entry related expenses 27,994 844 54,793 212 2,020 89,777 38,900 13,900 692 220,817- Miscellaneous expenses 15,893 340 143,595 67,760 1,143 132,241 (38,429) 15,631 11,930 340,927Depreciation 34,190 393 154,081 507 1,141 179,850 20,822 458,964 4,729 409,613Service tax expenses 37,185 592 102,052 13,088 1,205 105,651 17,567 805 293,776Total 1,548,587 34,005 7,166,175 97,403 53,363 6,142,480 1,457,947 172,150 17,131,074310 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSSCHEDULE - 3A March 31, 2014 (` ‘000)Expenses other than those directly related to the insurance business 89,300 March 31, 2013 1,368For the year ended March 31, 2014 4,274 35,390 4 29Particulars 751 385 Employees’ remuneration and welfare benefits 1,785 - Travel, conveyance and vehicle running expenses 897 49 Rent, rates and taxes 1,603 Printing and stationery 48,905 10,174 Communication expenses 1,227 1,619 Legal and professional charges 150,114 Interest and bank charges 982 Information technology cost 27,003 Others 1,038 Depreciation 76,669 TotalSCHEDULE - 4Benefits paid [net]For the year ended March 31, 2014Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Non Par Pension Health Group Total1 Insurance claims 3,660,541 2,034,296(a) Claims by death 212,368 15,060 1,124,238 62,738 - 1,378,555 778,803 4,685 84,094 - - 952,368(b) Claims by maturity 525,074 134,486 8,197 - - 330,513 1,036,026 - - 113,065,833(c) Annuities/pension payment - - - 952,368 --- 1,166,136 93,206(d) Other benefits 600,979- Surrender/withdrawal 967,032 4,298,117 329,948 - - 49,162,625 50,285,398 - 8,022,713 121,573,359 - - - - -- Survival 1,166,136 --- - - - (543,089) 67,946 42,164 3,301 523,728 - -- Rider 21,591 1,595 24,555 - 67,946 - - 528,413 - 8,106,807- Health - - 9,305 - 50,913,857 52,103,528 - -Sub-total (A) 2,892,201 4,449,258 1,496,243 1,015,106 - (290,645)2 (Amount ceded in reinsurance) (833,734)(a) Claims by death - - (359,706) - - (182,390) - - (993) - -- - -- -(b) Claims by maturity - --- -- - -- - -(c) Annuities/pension payment - --- - 120,739,625(d) Other benefits 121,573,359- Surrender/withdrawal - --- - - - - - - - - - - -- Survival - --- - - - - - 121,573,359 (33,761) - - (254,809) -- Rider - --- (33,761) (182,390) - (254,809) (993)- Health - - (2,075) -Sub-total (B) - - (361,781) -3 Amount accepted in reinsurance(a) Claims by death - --- - - - - - - - - - -(b) Claims by maturity - --- - - - - - - - - - -(c) Annuities/pension payment - --- - - - - - 34,185 50,731,467 52,103,528 273,604 8,105,814(d) Other benefits - ---Sub-total (C) - ---Total (A) + (B) + (C) 2,892,201 4,449,258 1,134,462 1,015,106Benefits paid to claimants:In India 2,892,201 4,449,258 1,496,243 1,015,106 67,946 50,913,857 52,103,528 528,413 8,106,807 - - - - -Outside India - --- 67,946 50,913,857 52,103,528 528,413 8,106,807Total 2,892,201 4,449,258 1,496,243 1,015,106307 Consolidated Receipts & Payments Account 308 Schedules 311

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE - 4Benefits paid [net]For the year ended March 31, 2013Particulars Par Life Par Non Par Annuity Health Linked Life Linked Linked Linked (` ‘000) Pension Non Par Pension Health Group Total1 Insurance claims(a) Claims by death 135,918 12,505 845,881 22,900 - 1,182,900 925,603 3,486 68,320 3,197,513 - - 141,778 592,705 - - 1,439,056(b) Claims by maturity 331,037 165,804 207,732 -- - - 799,503 - 799,503(c) Annuities/pension payment ---(d) Other benefits- Surrender/withdrawal 2,951,446 4,536,452 195,258 - - 58,852,631 49,517,084 - 10,873,611 126,926,482 - - - - - - 651,650- Survival 651,650 - - - - - - 91,574 - 104,411 55,862 3,774 447,470 - 568,371- Rider 19,661 513 11,764 822,403 104,411 - - 450,956 10,941,931 133,674,149- Health - - 16,490 60,233,171 51,039,166Sub-total (A) 4,089,712 4,715,274 1,277,1252 (Amount ceded in reinsurance)(a) Claims by death - - (450,788) - - (77,329) - - (127) (528,244)(b) Claims by maturity --- -- - -- - -(c) Annuities/pension payment --- -- - -- - -(d) Other benefits- Surrender/withdrawal --- -- - -- - - -- - -- - -- Survival --- -- - -- - - - (48,261) - - (216,361) - (267,322)- Rider --- - (48,261) (77,329) - (216,361) (127) (795,566)- Health - - (2,700)Sub-total (B) - - (453,488)3 Amount accepted in reinsurance(a) Claims by death --- - - - - - - - - - - - - - -(b) Claims by maturity --- - - - - - - - - - - - - - -(c) Annuities/pension payment --- - - - - - - - 822,403 56,150 60,155,842 51,039,166 234,595 10,941,804 132,878,583(d) Other benefits ---Sub-total (C) ---Total (A) + (B) + (C) 4,089,712 4,715,274 823,637Benefits paid to claimants:In India 4,089,712 4,715,274 1,277,125 822,403 104,411 60,233,171 51,039,166 450,956 10,941,931 133,674,149 - - - - - - -Outside India --- 822,403 104,411 60,233,171 51,039,166 450,956 10,941,931 133,674,149Total 4,089,712 4,715,274 1,277,125Note: Refer schedule 16 note 2.8 for accounting policy on benefits paid.312 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSSCHEDULE - 5Share capitalParticulars March 31, 2014 (` ‘000)Authorised capital March 31, 20131,500,000,000 Equity shares of ` 10/- each 15,000,000Issued, subscribed and called-up capital 15,000,0001,429,255,687 Equity shares of ` 10/- each fully paid up (Previous year: March 31, 2013 1,428,939,249 Equity share) 14,292,557Total 14,292,557 14,289,392 14,289,392Out of the total share capital, 1,055,310,907 shares (Previous year: March 31, 2013 - 1,055,310,907) of ` 10 each are held by the holding company, ICICI Bank Limited.SCHEDULE - 5A March 31, 2014 March 31, 2013Pattern of shareholding Number of shares % of holding Number of shares % of holding[As certified by the Management] 1,055,310,907 73.84 1,055,310,907 73.85 370,784,884 25.94 370,784,884 25.95 Shareholder 3,159,896 0.22 2,843,458 0.20 100.00 100.00 Promoters 1,429,255,687 1,428,939,249 Indian (ICICI Bank Limited) Foreign (Prudential Corporation Holdings Limited) Others TotalSCHEDULE - 6 March 31, 2014 (` ‘000)Reserves and surplus - March 31, 2013 -Particulars -Capital reserves 33,663,847 -Capital redemption reserve - 33,645,103Share premium -Revaluation reserveGeneral reserve 2,880,113 1,384,174 1,566,656 1,495,939 Opening balance 4,446,769 2,880,113 Add: Appropriations from Profit and Loss - Refer note 3.18 of schedule 16 (4,446,769) (2,880,113) Closing balance Less: Debit balance in Profit and Loss Account - Refer note 3.19 of schedule 16 - - Less: Amount utilized for buy-back - -Catastrophe reserve - -Other reserves - -Balance of profit in Profit and Loss Account 33,663,847 33,645,103Total March 31, 2014 (` ‘000)SCHEDULE - 7 - March 31, 2013Borrowings - - -Particulars - -Debentures/bonds - -Banks -Financial institutions -OthersTotal307 Consolidated Receipts & Payments Account 308 Schedules 313

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE - 8 March 31, 2014 (` ‘000) March 31, 2013Investments- Shareholders 12,502,889 13,213,021Particulars Long term investment 1,703,767 2,205,313 Government securities1 (Market value at March 31, 2014: ` 12,136,145 thousands) 7,840,062 6,699,157 (Market value at March 31, 2013: ` 13,265,604 thousands) 4,351,641 4,327,397 Other approved securities (Market value at March 31, 2014: ` 1,721,809 thousands) 70,029 60,029 (Market value at March 31, 2013: ` 2,210,664 thousands) 1,141,200 3,162,753 Other approved investments Equity shares 7,905,914 8,619,914 (Historical value at March 31, 2014: ` 5,998,770 thousands) 306,464 444,332 (Historical value at March 31, 2013: ` 6,230,713 thousands) Debentures/bonds 1,000,000 612,153 (Market value at March 31, 2014: ` 4,343,012 thousands) 687,195 568,336 (Market value at March 31, 2013: ` 4,409,885 thousands) CCIL deposit 1,844,616 575,212 (Market value at March 31, 2014: ` 70,029 thousands) 545 - (Market value at March 31, 2013: ` 60,029 thousands) Fixed deposits 450,064 470,273 (Market value at March 31, 2014: ` 1,141,200 thousands) 5,186,033 3,601,189 (Market value at March 31, 2013: ` 3,162,753 thousands) 4,863,509 3,783,226 Investments in infrastructure/housing sector Debentures/bonds (Market value at March 31, 2014: ` 7,751,837 thousands) (Market value at March 31, 2013: ` 8,730,357 thousands) Equity shares (Historical value at March 31, 2014: ` 328,048 thousands) (Historical value at March 31, 2013: ` 450,153 thousands) Other investments Debentures/bonds (Market value at March 31, 2014: ` 1,051,563 thousands) (Market value at March 31, 2013: ` 655,606 thousands) Equity shares (Historical value at March 31, 2014: ` 647,057 thousands) (Historical value at March 31, 2013: ` 553,372 thousands) Short term investment Government securities (Market value at March 31, 2014: ` 1,844,444 thousands) (Market value at March 31, 2013: ` 575,216 thousands) Other approved securities (Market value at March 31, 2014: ` 544 thousands) (Market value at March 31, 2013: ` Nil) Other approved investments Debentures/bonds (Market value at March 31, 2014: ` 447,464 thousands) (Market value at March 31, 2013: ` 471,179 thousands) Fixed deposits2 (Market value at March 31, 2014: ` 5,186,033 thousands) (Market value at March 31, 2013: ` 3,601,189 thousands) Certificate of deposits (Market value at March 31, 2014: ` 4,863,509 thousands) (Market value at March 31, 2013: ` 3,783,226 thousands)314 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSParticulars March 31, 2014 (` ‘000)Commercial papers 1,197,393 March 31, 2013(Market value at March 31, 2014: ` 1,197,393 thousands)(Market value at March 31, 2013: ` Nil) -Collateralized borrowing and lending obligation(Market value at March 31, 2014: ` 80,238 thousands) 80,238 -(Market value at March 31, 2013: ` Nil)Mutual fund - 2,441(Historical value at March 31, 2014: ` Nil)(Historical value at March 31, 2013: ` 2,441 thousands) 840,295 835,555Investments in infrastructure/housing sectorDebentures/bonds 14,137 -(Market value at March 31, 2014: ` 839,263 thousands)(Market value at March 31, 2013: ` 836,546 thousands) 1,536,256 9,977Other investmentsDebentures/bonds 53,522,247 49,190,278(Market value at March 31, 2014: ` 14,174 thousands) 53,522,247 49,190,278(Market value at March 31, 2013: ` Nil) 53,522,247 49,190,278Mutual fund(Historical value at March 31, 2014: ` 1,535,446 thousands)(Historical value at March 31, 2013: ` 9,977 thousands)TotalIn IndiaTotal1. Includes ` 102,361 thousand (Market value: ` 102,189 thousand) of securities under Section 7 of Insurance Act, 1938 at March 31, 2014. [At March 31, 2013: ` 104,595 thousand (Market value: ` 104,331 thousand)]2. Includes fixed deposit of ` 1,050,200 thousand (at March 31, 2014 and March 31, 2013: ` 1,050,100 thousand) and ` 300,100 thousand (at March 31, 2014 and March 31, 2013: ` 100,000 thousand) deposited with National Securities Clearing Corporation Limited and Indian Clearing Corporation Limited respectively towards margin requirement for equity trade settlement - Refer note 3.3 of schedule 163. Aggregate amount of Company’s investments and the market value thereof (` ‘000)Particulars March 31, 2014 March 31, 2013Aggregate amount of Company’s investments other than equity securities and mutual fund 42,927,216 41,217,482Market value of above investments 42,463,603 41,513,702Aggregate amount of Company’s investments in mutual fund and equity (at historical cost) 8,469,831 7,234,5384. Investments made out of Catastrophe reserve is ` Nil (at March 31, 2014 and March 31, 2013)5. Debt securities are held to maturity and reduction in market values represent market conditions and not a permanent dimunition in value of investments, if any.Note: Refer schedule 16 note 2.11 for accounting policy related to investments.307 Consolidated Receipts & Payments Account 308 Schedules 315

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE - 8AInvestments - Policyholders (` ‘000)Particulars Par Life Par Non Par Annuity March 31, 2014 Linked Linked Linked Total Pension Non Par Health Linked Life Pension Health GroupLong term investment 21,058,528 4,056,025 25,264,433 10,696,431Government securities1 4,727,702 2,261,814 2,565,706 1,117,565 495,709 2,663,595 921,930 - 265,945 65,422,596(Market value : ` 61,316,479 thousands) - 21,434 6,521 - - 10,700,742Other approved securities 5,236,980 927,194 6,431,288 -(Market value : ` 10,229,683 thousands) 9,269 - - - - - - - - 12,595,462Other approved investments 1,432,497 - - - - - 9,269Equity shares 4,550,646 3,474,854 3,004,064 - 80,000 485,174 279,764 15,000 216,547 13,538,546(Historical value : ` 7,883,275 thousands) 427,200 427,200 - - - - - - - 854,400Preference shares - - - 356,000 - 51 18 - 2 71(Market value : ` 18,496 thousands) 715,500 293,500 - 173,000 49,000 - - 2,131,500Debentures/bonds 544,500 -(Market value : ` 13,219,519 thousands) 565,010 86,762 2,133,135 -- - - - 1,838,660Property 6,051,696 3,547,752 1,186,888 150,000 1,378,846 371,544 19,802 124,601 19,513,741(Historical value : ` 185,521 thousands) 5,736,365 -CCIL deposit 170,972 - - - -- - - 593,111(Market value : ` 71 thousands) 349,741 - 422,139 - - -- - - 387,241Fixed deposits - 37,500 - -- - --(Market value : ` 2,131,500 thousands) - -Investments in infrastructure/housing sector - - - - -- - - 1,003,049Equity shares - - - -- - - 370,958(Historical value : ` 1,896,245 thousands) - 1,003,049 -Debentures/bonds - 370,958 - - 70,000 30,000 - - 607,699(Market value : ` 19,055,050 thousands) 250,000 - 818,528 - 100,000 - - - 1,086,200Other investments 489,000 1,796,771 257,699 - - 1,107,464 63,419 23,088 4,964,564Equity shares 816,854 5,885 497,200 - -- 310,256 - -(Historical value : ` 456,622 thousands) - 28,184 - 7,406 - 256 - 5,885Debentures/bonds - - 2,090,936(Market value : ` 365,034 thousands) - 170,151 - - 1,933 -Venture fund 776,306 2,081,341 -(Market value : ` Nil) 391,028 - - 100,000 - - 2,311,447Short term investment 146,063 - 1,650,268 - -- - - - 922,369Government securities - - 16,554,156 -(Market value : ` 1,003,049 thousands) 1,617,080 17,824,214 16,554,156 17,486 -- 98,477 160 3,088,798Other approved securities 529,832 17,824,214 1,454,072 16,554,156 98,477(Market value : ` 366,707 thousands) 17,824,214 - - -- 98,477 - 529,832Other approved investments 48,103,101Debentures/bonds 48,103,101 52,535,654 743,195 6,106,970 1,970,966 630,343 144,567,076(Market value : ` 605,748 thousands) 48,103,101 52,535,654 743,195 6,106,970 1,970,966 630,343 144,567,076Fixed deposits 52,535,654 743,195 6,106,970 1,970,966 630,343 144,567,076(Market value : ` 1,086,200 thousands)Certificate of deposits(Market value : ` 4,964,564 thousands)Collateralized borrowing and lending obligation(Market value : ` 5,885 thousands)Mutual fund(Historical value : ` 2,089,795 thousands)Investments in infrastructure/housing sectorDebentures/bonds(Market value : ` 2,305,971 thousands)Commercial paper(Market value : ` 922,369 thousands)Other investmentsMutual fund(Historical value : ` 3,087,006 thousands)Venture fund(Market value : ` 538,000 thousands)TotalIn IndiaTotal1. Government securities of ` 1,321,747 thousand with market value of ` 1,227,178 thousand (at March 31, 2013 : ` 794,986 thousand with market value of ` 807,356 thousand ) has been deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit. Government securities of ` 207,303 thousand with market value of ` 185,182 thousand (at March 31, 2013: ` 207,632 thousand with market value of ` 203,300 thousand) has been deposited with CCIL for trades in the Collateralized borrowing and lending obligation segment - Refer note 3.3 of schedule 16316 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS2. Aggregate amount of Company’s investments and the market value thereofParticulars March 31, 2014 (` ‘000)Aggregate amount of Company’s investments other than equity securities, mutual fund & derivative instruments 123,505,709 March 31, 2013Market value of above investments 118,134,325Aggregate amount of Company’s investments in mutual fund, equity & investment property (at historical cost) 15,598,464 100,464,714 100,775,386 9,222,6523. For investments in holding company and other related entities - Refer note 3.11 of schedule 16.4. Investments made out of Catastrophe reserve is ` Nil.5. Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.Note: Refer schedule 16 note 2.11 for accounting policy related to investments.SCHEDULE - 8A Par Life Par Non Par Annuity March 31, 2013 Linked Linked Linked (` ‘000) 14,581,091 Pension Non Par Health Linked Life Pension Health Group TotalInvestments - Policyholders 6,780,894 42,327,386 2,983,399 14,034,495 8,087,708 191,529 1,744,726 491,664 50,963 161,811 15,499,755 Particulars 3,253,382 - 2,368,157 2,815,762 2,141,167 - 740,103 455,737 - 197,935 7,799,725 Long term investment - Government securities1 3,512,733 929,471 3,616,872 - --- -- (Market value : ` 42,171,992 thousands) 445,000 - -- 9,559,225 Other approved securities - -- 1,370,142 --- -- 890,000 (Market value : ` 15,640,521 thousands) - -- 71 Other approved investments 1,214,600 2,429,514 1,767,877 - - 293,917 185,042 -2 Equity shares 356,000 - 40,400 3,540,100 (Historical value : ` 5,295,082 thousands) 245,832 445,000 - --- Preference shares 5,815,960 972,710 (Market value : ` Nil) -- - 51 18 18,304,757 Debentures/bonds 291,973 (Market value : ` 9,693,507 thousands) 89,885 553,500 841,500 - 434,600 99,500 637,902 Property 580,365 127,385 (Historical value : ` 185,521 thousands) 91,386 635,492 -- - -- - 580,365 CCIL deposit 195,938 (Market value : ` 71 thousands) - 3,321,950 4,373,728 2,141,506 50,000 1,620,329 660,532 19,800 300,952 1,983,598 Fixed deposits - (Market value : ` 3,540,100 thousands) 250,000 - 345,929 -- - -- - Investments in infrastructure/housing sector 820,000 - 37,500 630,175 Equity shares -- -- - -- - 4,056,500 (Historical value : ` 1,054,382 thousands) - Debentures/bonds 462,707 -- - -- - 756,769 (Market value : ` 18,485,726 thousands) 150,801 1,924,245 Other investments 884,116 362,183 - 443,501 97,860 -- - 2,104,827 Equity shares - - -- - -- - (Historical value : ` 583,412 thousands) Debentures/bonds 150,175 50,000 -- 80,000 70,000 30,000 - (Market value : ` 127,385 thousands) 400,000 - Venture fund 2,596,500 - -- 240,000 - - (Market value : ` 590,805 thousands) - - Short term investment 498,663 258,106 -- - -- 5,907 Government securities 89,910 (Market value : ` 1,983,599 thousands) 1,135,719 - 325,819 - -- Other approved securities (Market value : ` Nil) - 1,725,468 - 103,469 11,783 17,489 Other approved investments Debentures/bonds (Market value : ` 629,947 thousands) Fixed deposits (Market value : ` 4,056,500 thousands) Certificate of deposits (Market value : ` 756,769 thousands ) Collateralized borrowing and lending obligation (Market value : ` 1,924,244 thousands) Mutual fund (Historical value : ` 2,104,255 thousands)307 Consolidated Receipts & Payments Account 308 Schedules 317

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014Particulars Par Life Par Non Par Annuity March 31, 2013 Linked Linked Linked (` ‘000) Pension Non Par Health Linked Life Pension Health Group TotalInvestments in infrastructure/housing sector 585,539Debentures/bonds 150,291 150,000 150,172 - - 70,094 64,982 - - 588,844(Market value : ` 585,376 thousands)Commercial paper - - 588,844 - - - - - -(Market value : ` 588,844 thousands)Other investments - - - -- - -- --Mutual fund(Historical value : ` Nil) - - - -- - -- --Venture fund(Market value : ` Nil) 38,841,452 18,537,550 31,603,928 14,422,342 788,499 5,571,590 2,279,258 118,252 707,007 112,869,878Total 38,841,452 18,537,550 31,603,928 14,422,342 788,499 5,571,590 2,279,258 118,252 707,007 112,869,878In India 38,841,452 18,537,550 31,603,928 14,422,342 788,499 5,571,590 2,279,258 118,252 707,007 112,869,878Total1. Government securities of ` 1,321,747 thousand with market value of ` 1,227,178 thousand (at March 31, 2013 : ` 794,986 thousand with market value of ` 807,356 thousand ) has been deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit. Government securities of ` 207,303 thousand with market value of ` 185,182 thousand (at March 31, 2013: ` 207,632 thousand with market value of ` 203,300 thousand) has been deposited with CCIL for trades in the Collateralized borrowing and lending obligation segment - Refer note 3.3 of schedule 162. Aggregate amount of Company’s investments and the market value thereof March 31, 2014 (` ‘000) Particulars March 31, 2013Aggregate amount of Company’s investments other than equity securities, mutual fund & derivative instruments 123,505,709 100,464,714Market value of above investments 118,134,325 100,775,386Aggregate amount of Company’s investments in mutual fund, equity & investment property (at historical cost) 15,598,464 9,222,6523. For investments in holding company and other related entities -Refer note 3.11 of schedule 16.4. Investments made out of Catastrophe reserve is ` Nil.5. Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.Note: Refer schedule 16 note 2.11 for accounting policy related to Investments.SCHEDULE - 8B Linked Life Linked Pension March 31, 2014 Linked Group (` ‘000)Assets held to cover linked liabilities Funds Funds Funds Total Linked Health 51,241,906 Particulars Funds 7,942,628 Long term investments 34,602,593 9,809,727 300,164 6,529,422 Government securities (Historical value : ` 51,912,462 thousands) 3,194,478 2,676,669 60,714 2,010,767 Other approved securities (Historical value : ` 7,845,552 thousands) 181,231,303 111,941,548 2,740,528 6,798,378 302,711,757 Other approved investments 134,318 51,036 1,585 - 186,939 Equity shares 2 (Historical value : ` 227,354,351 thousands) 9,260,561 6,829,856 153,109 6,365,824 22,609,350 Preference shares 3,599,976 1,741,006 10,111 2,134,307 7,485,400 (Historical value : ` 110,824 thousands) Debentures/bonds 16,450,046 12,933,299 307,265 243,045 29,933,655 (Historical value : ` 22,657,852 thousands) 14,832,104 7,718,522 171,981 6,372,800 29,095,407 Fixed deposit (Historical value : ` 7,485,400 thousands)Investments in infrastructure/housing sector Equity shares 2 * (Historical value : ` 35,625,880 thousands) Debenture/bonds (Historical value : ` 29,094,566 thousands)318 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS (` ‘000) March 31, 2014Particulars Linked Life Linked Pension Linked Health Linked Group Total Funds Funds Funds FundsOther investmentsEquity shares 12,159,002 7,653,376 340,222 663,419 20,816,019(Historical value : ` 21,360,717 thousands)Debentures/bonds 138,661 49,970 9,994 37,126 235,751(Historical value : ` 238,054 thousands)Venture fund -----(Historical value : ` Nil)Short term investmentsGovernment securities 3,921,317 336,425 1,766 4,209 4,263,717(Historical value : ` 4,219,206 thousands)Other approved investmentsDebentures/bonds 1,588,553 1,834,710 14,897 1,322,703 4,760,863(Historical value : ` 4,741,181 thousands)Certificate of deposit 13,681,873 8,389,956 234,465 6,701,098 29,007,392(Historical value : ` 28,796,669 thousands)Commercial papers 5,393,870 4,110,869 69,942 2,576,546 12,151,227(Historical value : ` 11,890,751 thousands)Fixed deposits 16,115,881 12,558,961 174,338 8,793,278 37,642,458(Historical value : ` 37,642,458 thousands)Collateralized borrowing and lending obligation 324,129 432,254 8,879 148,287 913,549(Historical value : ` 912,355 thousands)Mutual fund 1,769,565 806,014 47,681 265,036 2,888,296(Historical value : ` 2,886,513 thousands)Investments in infrastructure/housing sectorDebentures/bonds 3,571,767 3,090,426 76,932 2,207,845 8,946,970(Historical value : ` 8,925,106 thousands)Commercial papers 6,770,162 5,885,815 12,989 2,823,890 15,492,856(Historical value : ` 15,045,569 thousands)Other investmentsDebentures/bonds 319,137 253,654 6,021 550,210 1,129,022(Historical value : ` 1,157,734 thousands)Mutual fund 1,167,983 524,975 101,325 502,932 2,297,215(Historical value : ` 2,295,730 thousands)Venture fund 15,735 - - - 15,735(Historical value : ` 14,294 thousands)Net current asset 5,967,718 2,880,478 160,540 2,327,473 11,336,209Total 336,210,732 202,509,546 5,005,448 59,378,595 603,104,321In India 336,210,732 202,509,546 5,005,448 59,378,595 603,104,321Total 336,210,732 202,509,546 5,005,448 59,378,595 603,104,3211 For investments in holding company and other related entities - Refer note 3.11 of schedule 16.2 Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these securities - Refer note 3.7 of schedule 16* Includes rights entitlement where renouncement period has not expired as at the Balance Sheet date.Note: Refer schedule 16 note 2.11 for accounting policy related to investments.307 Consolidated Receipts & Payments Account 308 Schedules 319

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE - 8BAssets held to cover linked liabilitiesParticulars Linked Life Linked Pension March 31, 2013 Linked Group (` ‘000) Funds Funds FundsLong term investments 27,103,152 Linked Health 7,359,991 TotalGovernment securities 892,351 Funds 25,190 45,961,511(Historical value : ` 45,950,008 thousands) 162,107,021 11,339,898 158,470 5,829,233 1,080,840Other approved securities - -(Historical value : ` 1,076,566 thousands) 150,615 12,684 295,259,361Other approved investments 10,111,342 6,638,434 -Equity shares 6,357,535 125,349,783 1,973,324 5,918,171(Historical value : ` 247,847,456 thousands) - - 24,672,383Preference shares 17,359,651 419,910 19,060,857(Historical value : ` Nil) 16,103,498 7,784,994 137,613 8,176,511Debentures/bonds 6,717,724 67,427 33,084,749(Historical value : ` 24,221,906 thousands) 14,279,796 531,184 35,686,059Fixed deposit 601,412 15,064,038 241,150 739,348(Historical value : ` 19,060,858 thousands) 16,258 11,234,508 171,542 26,827,014Investments in infrastructure/housing sector - 1,873,630Equity shares 245,128 11,743,640 272,394(Historical value : ` 38,053,772 thousands) 512,852 20,018 - 16,258Debentures/bonds 2,067,633 -(Historical value : ` 35,196,026 thousands) 14,778,620 - 1,198,787 245,128Other investments 6,549,599Equity shares 384,515 -- 5,236,616(Historical value : ` 30,999,936 thousands) 8,430,977 811,037 31,946,069Debentures/bonds 1,960,633 9,563 5,812,717 1,649,854(Historical value : ` 1,896,008 thousands) 47,938 10,285,230 332,620 22,150,100Venture fund 2,013,143 3,599(Historical value : ` 14,415 thousands) 452,417 1,885 355,079 75,099Short term investments 2,105,573 7,734,248 172,158 3,710,236Government securities 1,538,169 1,728,564(Historical value: ` 245,128 thousands) 22,726 836 1,440,997 5,990,179Other approved investments - 1,295,717 46,297 5,378,869Debentures/bonds 760,060 -(Historical value : ` 5,099,105 thousands) 2,138,878 17,164 552,081 -Certificate of deposit - 2,395,374 4,329 1,803,708(Historical value : ` 31,776,324 thousands) 6,285,146 -Commercial papers 293,588,918 - - 3,159,527 -(Historical value : ` 1,603,623 thousands) 293,588,918 57,249,959 13,499,754Fixed deposits 293,588,918 319,403 172,164 57,249,959 575,208,274(Historical value : ` 22,150,100 thousands) 57,249,959 575,208,274Collateralized borrowing and lending obligation - - 575,208,274(Historical value : ` 75,009 thousands)Mutual fund 4,047,559 7,522(Historical value : ` 3,709,226 thousands) 220,550,237 3,819,160Investments in infrastructure/housing sector 220,550,237 3,819,160Debentures/bonds 220,550,237 3,819,160(Historical value : ` 5,877,949 thousands)Commercial papers(Historical value : ` 5,268,118 thousands)Other investmentsDebentures/bonds(Historical value : ` Nil)Mutual fund(Historical value : ` 1,803,219 thousands)Venture fund(Historical value : ` Nil)Net current assetTotalIn IndiaTotal1 For investments in holding company and other related entities refer note 3.11 of schedule 16.Note: Refer schedule 16 note 2.11 for accounting policy related to investments.320 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSSCHEDULE - 9 March 31, 2014 (` ‘000) March 31, 2013Loans - - Particulars - - 1. Security-wise classifications - - 119,076 87,469 Secured - - (a) On mortgage of property - - 119,076 87,469 (aa) In India (bb) Outside India - - (b) On Shares, bonds, Govt securities, etc. - - (c) Loans against policies - - (d) Others - - Unsecured 119,076 87,469 Total - - 2. Borrower wise classification 119,076 87,469 (a) Central and State Governments (b) Banks and financial institutions 119,076 87,469 (c) Subsidiaries - - (d) Companies (e) Policyholders - loans against policies - - (f) Others - - Total 119,076 87,469 3. Performance-wise classification (a) Loans classified as standard 6,513 4,026 (aa) In India 112,563 83,443 (bb) Outside India 119,076 87,469 (b) Non-standard loans less provisions (aa) In India (bb) Outside India Total 4. Maturity-wise classification (a) Short-term (b) Long-term TotalNote: Refer schedule 16 note 2.12 for accounting policy on loan.SCHEDULE - 10Fixed assets Gross block Depreciation (` ‘000) Additions Deductions Net blockParticulars At April At March At April 1, For the Deductions At March 1,2013 31, 2014 2013 year 31, 2014 At March At MarchIntangible assets 31, 2014 31, 2013Goodwill - -Software1 - - - 875,018 577,444 - - -- -Tangible assets 745,838 129,180 - 106,191 - 683,635 191,383 168,394Freehold land 903,280 -Improvements to leasehold property 903,280 - - 1,375,571 1,099,397 - - - 903,280 903,280Office buildings on freehold land 1,405,205 149,141 178,775 180,518 176,664 1,103,251 272,320 305,808Furniture and fixtures 89,000 8,714 78,835 80,286Information technology equipment 89,000 - - 150,878 101,638 1,451 - 10,165 18,279 23,311Motor vehicles 124,949 38,477 12,548 404,798 127,045 42,802 11,841 132,599 217,211 79,259Office equipment 206,304 228,934 30,440 54,730 18,254 77,619 17,077 187,587 27,474 36,682Communication networks 54,936 3,779 3,985 264,331 196,527 10,522 1,520 27,256 68,648 39,744Total 236,271 55,314 27,254 289,888 72,151 25,415 26,259 195,683 193,344 17,250Capital work in progress including capital 89,401 201,057 4,407,494 2,201,170 24,922 96,544 1,970,774 1,654,014advances 3,855,184 805,882 570 469,440 529 2,436,720 46,390 69,970Total 253,572 - - 233,890At March 31, 2013 - - - - - 4,407,494 2,201,170 - 3,855,184 805,882 3,851,512 2,431,078 469,440 4,189,575 319,663 253,572 409,790 233,890 2,436,720 2,017,164 1,723,984 657,726 641,770 2,199,098 --1. All software are other than those generated internally.Note: Refer schedule 16 note 2.13 for accounting policy related to fixed assets.307 Consolidated Receipts & Payments Account 308 Schedules 321

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014 SCHEDULE - 11 March 31, 2014 (` ‘000) 1,515,512 March 31, 2013 Cash and bank balances 1,689,481 ParticularsCash (including cheques, drafts and stamps) - -Bank balance - - (a) Deposit account : 418,919 1,558,196 - - (aa) Short-term (due within 12 months of the date of Balance Sheet) (bb) Others - - (b) Current accounts - - (c) Others - -Money at call and short notice 1,934,431 3,247,677 (a) With banks 6,910 4,775 (b) With other institutionsOthers 1,918,608 3,239,992 Total 15,823 7,685Balances with non-scheduled banks included aboveCash and bank balances 1,934,431 3,247,677 In India Outside India March 31, 2014 (` ‘000) Total March 31, 2013 -SCHEDULE - 12 36,374 - 180,781 -Advances and other assets 133,413 - - Particulars 1,557,152 1,452,325Advances Reserve deposits with ceding companies 415,249 421,160 Application money for investments (including advance for investment property) (48,873) (71,129) Prepayments 366,376 350,031 Advances to directors/officers Advance tax paid and taxes deducted at source 104,962 276,241 Deposits (13,479) (25,718) 250,523 Gross 91,483 Less: Provision for doubtful deposits 156,302 Net 177,660 (45,589) Other advances (59,738) 110,713 Gross 117,922 2,297,005 Less: Provision for doubtful advances 2,350,088 Net 4,282,324 Other receivables 4,920,889 1,221,345 Gross 1,624,361 Less: Provision for doubtful receivables 195,377 Net 154,569 (170,914) Total (A) (140,056) Other Assets 24,463 Income accrued on investments and deposits 14,513 - Outstanding premiums - Agents’ balances 16,253 Gross 45,933 - Less: Provision for doubtful agents’ balance - Net 1,860,289 Foreign agencies balances 526,027 152,449 Due from other entities carrying on insurance business (including reinsurers) 155,636 Deposit with Reserve Bank of India 7,287,359 7,557,123 Receivable towards investments sold 9,637,447 9,854,128 Service tax un-utilised credit Total (B) Total (A+B)322 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSSCHEDULE - 13 March 31, 2014 (` ‘000)Current liabilities 872,621 March 31, 2013 78,561 Particulars - 1,026,686 Agents’ balances 127,275 Balances due to reinsurance companies 1,277,842 - Deposits held on re-insurance ceded 281,326 Premium received in advance 144,855 1,086,387 Unallocated premium 451,496 357,827 Sundry creditors 377,912 192,087 Due to holding company - Refer note 3.11 of schedule 16 - 131,666 Claims outstanding 13,243 67,998 Due to officers/ directors - Deposits 4,419,316 13,243 Expenses payable 202,037 TDS payable 5,631,274 Payable towards investments purchased 1,012,117 237,320 Unclaimed amount of Policyholders 4,324,693 Payable to unit fund 2,322,379 2,157,613 Service tax payable 4,128,634 Other liabilities 4,263 3,188,825 Total 287,567 16,070,228 14,819SCHEDULE - 14 70,864Provisions 18,432,518 Particulars March 31, 2014 (` ‘000) For taxation - March 31, 2013 For proposed dividends For dividend distribution tax - Refer note 3.18 of schedule 16 3,001,437 - For leave encashment and gratuity - Refer note 3.13 of schedule 16 510,094 1,414,650 Total 134,655 240,420SCHEDULE - 15 3,646,186 98,080Miscellaneous expenditure 1,753,150(To the extent not written off or adjusted) March 31, 2014 (` ‘000) - March 31, 2013 Particulars - Discount allowed in issue of shares/debentures - - Others - Total -307 Consolidated Receipts & Payments Account 308 Schedules 323

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014SCHEDULE: 16 assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstancesSignificant accounting policies and notes forming part of the as on the date of the financial statements. Actual results could differfinancial statements for the year ended March 31, 2014 from those estimates. Any revision to accounting estimates is recognised prospectively.1. Corporate information 2.3. Revenue recognitionThese financial statements comprise of the consolidated financialstatements of ICICI Prudential Life Insurance Company Limited, the Parent 2.3.1. Premium incomeCompany, with the financial statements of its subsidiary ICICI PrudentialPension Funds Management Company Limited. Premium is recognised as income when due from policyholders. For unit linked business, premium is recognised as income when the associatedICICI Prudential Life Insurance Company Limited (`the Company’), a joint units are created.venture between ICICI Bank Limited and Prudential Corporation HoldingsLimited, was incorporated on July 20, 2000 as a company under the Premium on lapsed policies is recognised as income when such policiesCompanies Act, 1956 (`the Act’). The Company is licensed by the are reinstated.Insurance Regulatory and Development Authority (`IRDA’) for carrying lifeinsurance business in India. The license has been renewed annually and is Products having regular premium paying plans with limited premiumin force as at March 31, 2014. payment term and/or pre-determined policy term are treated as regular business with due classification of premium into first year and renewal.The Company carries on business of providing life insurance, pensions Premium income on products other than aforesaid is classified as singleand health insurance to individuals and groups. Riders providing additional premium.benefits are offered under some of these products. The business isconducted in participating, non-participating and unit linked lines of Top up premiums paid by unit linked policyholders’ are considered as singlebusinesses. These products are distributed through individual agents, premium and recognised as income when the associated units are created.corporate agents, banks, brokers, the Company’s proprietary sales forceand the Company website. 2.3.2. Reinsurance premium cededICICI Prudential Pension Funds Management Company Limited (`the Reinsurance premium ceded is accounted in accordance with the termsSubsidiary’) is a wholly owned subsidiary of ICICI Prudential Life Insurance and conditions of the relevant treaties with the reinsurer. Profit commissionCompany Limited, incorporated on April 22, 2009 as a company under the on reinsurance ceded is netted off against premium ceded on reinsurance.Companies Act, 1956 (`the Act’) and received certificate to commencebusiness on April 28, 2009. The Subsidiary is licensed by the Pension Funds 2.3.3. Income from investmentsRegulatory and Development Authority (`PFRDA’) for acting as a PensionFund Manager for the management of the Pension funds under the National Interest income on investments is recognised on accrual basis. AmortisationPension System introduced by the Central Government. of premium or accretion of discount on debt securities is recognised over the holding/maturity period on a straight-line basis.2. Summary of significant accounting policies Dividend income, in respect of other than unit linked business, is recognised2.1. Basis of preparation when the right to receive dividend is established. Dividend income, in respect of unit linked business, is recognised on the `ex-dividend date’.The accompanying consolidated financial statements are prepared andpresented under the historical cost convention, unless otherwise stated, Fees received on lending of equity shares under Securities Lending andand on the accrual basis of accounting, in accordance with accounting Borrowing scheme (SLB) is recognised as income over the period of theprinciples generally accepted in India (Indian GAAP) and in accordance lending on a straight-line basis.with Accounting Standard - 21 “Consolidated Financial Statements” andother Accounting Standards (`AS’) notified under the Companies Act, 1956 Lease rentals on investment property is recognised on accrual basis and(which continue to be applicable in terms of the General Circular 15/2013 include only the realised rent and does not include any notional rent, asdated September 13, 2013 of the Ministry of Corporate Affairs in respect prescribed by IRDA (Preparation of Financial Statements and Auditors’of section 133 of the Companies Act, 2013) to the extent applicable, and Report of Insurance Companies) Regulations 2002. Costs related toin accordance with the provisions of the Insurance Act, 1938, Insurance operating and maintenance of investment property are recognised asRegulatory and Development Authority Act, 1999, and the regulations expense in the Revenue Account.framed thereunder, various circulars issued by the IRDA and the practicesprevailing within the insurance industry in India. Accounting policies applied Profit or loss on sale/redemption of debt securities for other than unit linkedhave been consistent with previous year except where different treatment business is the difference between the sale consideration net of expensesis required as per new pronouncements made by the regulatory authorities. and the weighted average amortised cost as on the date of sale. Profit or loss on sale/redemption of debt securities for unit linked business isThe management evaluates all recently issued or revised accounting the difference between the sale consideration net of expenses and thepronouncements on an ongoing basis. weighted average book cost as on the date of sale.2.2. Use of estimates Profit or loss on sale/redemption of equity shares and mutual fund units is the difference between the sale consideration net of expenses and theThe Company’s management makes estimates and assumptions that weighted average book cost as on the date of sale. In respect of other thanaffect the reported amounts of income and expenses for the year, reported unit linked business, the profit or loss includes the accumulated changesbalances of assets and liabilities, and disclosures relating to contingent in the fair value previously recognised under “Fair Value Change Account”.liabilities as on the date of the financial statements. The estimates and 2.3.4. Income from unit linked policies In case of Life Insurance business, income from unit linked policies,324 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSwhich includes fund management charges, policy administration charges, has been determined based on historical experience and available marketmortality charges and other charges, if any, are recovered from the unit information.linked funds in accordance with terms and conditions of policies issued andare recognised when due. Provident fund: The Company’s defined benefit obligation towards interest rate guarantee on the exempt provident fund is actuarially determined and2.3.5. Fees and charges measured in accordance with the Guidance Note (GN 29) on Valuation of Interest Rate Guarantees on Exempt Provident Funds under AS 15 (Revised)In case of Life Insurance business, interest income on loans is recognised issued by The Institute of Actuaries of India.on an accrual basis. Fees and charges also include policy reinstatement feeand loan processing fee which are recognised on receipt basis. 2.5.3. Other long term employee benefitsIn case of Pension Fund Management business, Investment management Other long term employee benefits includes accumulated compensatedfees are recognised on an accrual basis in accordance with the terms of absences that are entitled to be carried forward for future encashmentcontract between the Subsidiary and the National Pension System Trust, or availment, at the option of the employee subject to the rules framedestablished by the PFRDA. by the Company which are expected to be availed or enchased beyond 12 months from the end of the year and long term retention incentive2.4. Acquisition cost payable to employees on fulfilment of criteria prescribed by the Company. The Company’s liability towards accumulated compensated absencesAcquisition costs are costs that vary with and are primarily related to entitlement outstanding at the close of the year and long term retentionacquisition of insurance contracts and are expensed in the period in which incentive are determined actuarially and are recognised as a liability at thethey are incurred. present value of the obligation as at the Balance Sheet date.2.5. Employee benefits 2.5.4. Employee share based payments2.5.1. Short term employee benefits The Company has formulated an Employee Stock Option Scheme (‘the Scheme’). The Scheme provides that eligible employees are granted optionsAll employee benefits payable within twelve months of rendering the to acquire equity shares of the Company that vest in graded manner. Theservice are classified as short-term employee benefits. Benefits such vested options may be exercised within a specified period. The exerciseas salaries, bonuses, short term compensated absences and other non- price of the option is diluted when there is a subsequent issue of shares atmonetary benefits are recognised in the period in which the employee a price lower than the grant price.renders the related service. All short term employee benefits are accountedon undiscounted basis. In accordance with the Guidance Note on Accounting for Employee Share- based Payments, the Company follows the intrinsic value method to2.5.2. Long term employee benefits: Post-employment account for its share-based employee compensation plans. Compensation cost is measured as the excess, if any, of the fair market price of theThe Company has both defined contribution and defined benefit plans. underlying stock over the exercise price on the grant date and amortised over the vesting period. The fair value of the shares is determined based onDefined contribution plan an external valuation report.The Company has a defined contribution scheme for Superannuation for its 2.6. Operating lease expensesemployees. Contributions to the Superannuation scheme are made on amonthly basis, when due, and charged to Revenue account and Profit and Leases where the lessor effectively retains substantially all the risks andLoss account, as applicable. The expenses are booked on an undiscounted rewards of ownership are classified as operating leases. Payments madebasis. The Company has no further obligation beyond the monthly under operating lease including escalations are recognised as an expense,contribution. The scheme is managed by ICICI Prudential Life Insurance on a straight line basis, over the lease term.Company Limited Superannuation Scheme. 2.7. Provision for doubtful debtsDefined benefit plans The Company regularly evaluates the probability of recovery and providesGratuity and Provident fund are defined benefit obligations. for doubtful deposits, advances and others receivables.Gratuity: The gratuity benefit payable to the employees of the Company is 2.8. Benefits paidas per the provisions of the Payment of Gratuity Act, 1972 or the Company’sgratuity plan, whichever is higher. The gratuity liability of the Company is Benefits paid comprise of policy benefits and claim settlement costs, if any.actuarially determined at each Balance Sheet date using projected unitcredit method. Death and rider claims are accounted for on receipt of intimation. Survival and maturity benefits are accounted when due. WithdrawalsThe Company contributes towards net liabilities to ICICI Prudential Life and surrenders under non-linked policies are accounted on the receipt ofInsurance Company Limited Employees’ Group Gratuity Cum Life Insurance intimation. Withdrawals and surrenders under linked policies are accountedScheme. in the respective schemes when the associated units are cancelled.The Company recognises the net obligation of the Scheme in Balance Sheet 2.9. Actuarial liability valuationas an asset or liability, respectively in accordance with Accounting Standard(AS) 15 (revised 2005), ‘Employee benefits’. The discount rate used for The actuarial liabilities are calculated in accordance with accepted actuarialestimation of liability is based on Government securities yield. Gain or loss practice, requirements of Insurance Act, 1938, regulations notified by thearising from change in actuarial assumptions/experience adjustments Insurance Regulatory and Development Authority of India and Actuarialis recognised in the Revenue account and Profit or Loss account for the Practice Standards of the Institute of Actuaries of India.period in which they emerge. Expected long-term rate-of-return on assets307 Consolidated Receipts & Payments Account 308 Schedules 325

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY20142.10. Funds for Future Appropriations (FFA) Unrealised gains/losses arising due to changes in the fair value of listedFFA (Linked) equity shares and mutual fund units are taken to the “Fair Value Change Account” in the Balance Sheet.Amounts estimated by Appointed Actuary as FFA in respect of lapsed unitlinked policies, are set aside in the Balance Sheet and are not available for Investment property is held to earn rental income or for capital appreciationdistribution to Shareholders until the expiry of the maximum revival period. and is not occupied by the Company. Investment property is initially valuedAfter expiry of the revival period, the Company may appropriate as surplus at cost including any directly attributable transaction costs. Investmenton the Appointed Actuary’s recommendation. property is revalued at least once in every three years. The change in carrying amount of investment property is taken to “Revaluation reserve”FFA (Non linked) in the Balance Sheet.Based on the recommendation of Appointed Actuary unappropriated profits Investments in venture fund units are valued at historical cost.are held in the Balance Sheet as Funds for Future Appropriations. Instruments bought on `reverse repo’ basis are valued at cost plus interest2.11. Investments accrued on reverse repo rate.Investments are made and accounted for in accordance with the Insurance Fixed deposits with banks are valued at cost.Act, 1938, Insurance Regulatory and Development Authority (Investments)Regulations, 2000 amended from time to time, Insurance Regulatory and The Company assesses at each Balance Sheet date whether there isDevelopment Authority (Preparation of Financial Statements and Auditor’s any evidence of impairment of any investments. In case of impairment,Report of Insurance Companies) Regulations, 2002, Investment Policy of the carrying value of such investment is reduced to its fair value and thethe Company and various other circulars/notifications issued by the IRDA in impairment loss is recognised in the Revenue/Profit and Loss account afterthis context from time to time. adjusting it with previously recognised revaluation reserve/Fair value change account. However, at the Balance Sheet date if there is any indication thatInvestments are recorded at cost on the date of purchase, which includes a previously recognised impairment loss no longer exists, then such loss isbrokerage and taxes, if any, but excludes interest accrued as on the date reversed and the investment is restated to that extent.of acquisition. 2.11.3. Valuation - Unit linked businessBroken period interest paid/received is debited/credited to interestreceivable account. Central and State government securities are valued as per the valuation price provided by CRISIL.Bonus entitlements are recognised as investments on the ‘ex- bonus date’. Debt securities other than government securities with a residual maturityRights entitlements are recognised as investments on the ‘ex-rights date’. over 182 days are valued on a yield to maturity basis, by using spreads over the benchmark rate (based on the matrix released by the CRISIL LimitedAny front end discount on investments is reduced from the cost of such (‘CRISIL’) on daily basis) to arrive at the yield for pricing the security.investments. Debt securities with a residual maturity upto 182 days are valued at last valuation2.11.1. Classification price plus the difference between the redemption value and last valuation price, spread uniformly over the remaining maturity period of the instrument.Investments maturing within twelve months from the Balance Sheet dateand investments made with the specific intention to dispose them off Money market instruments are valued at historical cost, subject to accretionwithin twelve months from the Balance Sheet date are classified as short- of discount over the period of maturity/holding on a straight-line basis.term investments. Listed equity shares are valued at market value, being the last quotedInvestments other than short-term investments are classified as long-term closing price on the NSE (in case of securities not listed on NSE, the lastinvestments. quoted closing price on the BSE is used). Equity shares lent under the Securities lending and borrowing scheme (SLB) continue to be recognised2.11.2. Valuation - Other than Unit linked business in the Balance Sheet as the Company retains all the associated risks and rewards of these securities.In case of Life Insurance business, all debt securities including governmentsecurities and redeemable preference shares are considered as `held to Mutual fund units are valued at the latest available net asset values of thematurity’ and stated at historical cost, subject to amortisation of premium respective fund.or accretion of discount over the period of maturity/holding on a straightline basis. Venture fund units are valued at the latest available net asset value of the respective fund.Money market instruments are valued at historical cost, subject to accretionof discount over the period of maturity/holding on a straight-line basis. Securities with call option are valued at the lower of the value as obtained by valuing the security upto final maturity date or the call option date. In case thereListed equity shares at the Balance Sheet date are stated at fair value are multiple call options, the security is valued at the lowest value obtained bybeing the last quoted closing price on the National Stock Exchange of India valuing the security at various call dates or upto the final maturity date.Limited (‘NSE’) (in case the securities are not listed on NSE, the last quotedclosing price on the BSE Limited (‘BSE’) is used). Unlisted equity shares are Securities with put option are valued at the higher of the value as obtainedstated at historical cost. Equity shares lent under the Securities Lending and by valuing the security upto final maturity date or the put option date. InBorrowing scheme (SLB) continue to be recognised in the Balance Sheet as case there are multiple put options, the security is valued at the highestthe Company retains all the associated risks and rewards of these securities. value obtained by valuing the security at various put dates or upto the final maturity date.Mutual fund units are valued at the latest available net asset values of therespective fund.326 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSThe securities with both put and call option on the same day would be the date of being ready to use, up to the date of sale, based on estimateddeemed to mature on the put/call date and would be valued on a yield to useful life for each class of asset.maturity basis, by using spreads over the benchmark rate based on thematrix released by CRISIL. 2.13.2. IntangiblesInstruments bought on `reverse repo’ basis are valued at cost plus interest Intangible assets comprising software are stated at cost less amortisation.accrued on reverse repo rate. Significant expenditure on improvements to software are capitalised when it is probable that such expenditure will enable the asset to generateUnrealised gains and losses are recognised in the Revenue account as future economic benefits in excess of its originally assessed standards ofprescribed by IRDA (Preparation of Financial Statements and Auditors’ performance and such expenditure can be measured and attributed to theReport of Insurance Companies) Regulations 2002. asset reliably. Subsequent expenditures are amortised over the remaining useful life of original software. Software expenses are amortised using SLMFixed deposits with banks are valued at cost. over a period of 4 years from the date of being ready to use.2.11.4. Valuation - Pension fund management business 2.13.3. Capital work in progressCurrent investments are carried at lower of cost or fair value determined on Assets not ready for their intended use and other capital work-in-progressan individual investment basis. Non-current investments are carried at cost. are carried at cost, comprising direct cost and related incidental expenses.2.11.5. Transfer of investments 2.13.4. Impairment of assetsIn case if Life insurance business, transfer of investments from Shareholders’ Management periodically assesses, using external and internal sources,fund to the Policyholders’ fund to meet the deficit in the Policyholders’ whether there is any indication that an asset may be impaired. If any suchaccount is made at amortised/book cost or market price, whichever is indication exists, an estimate of the recoverable amount of the asset unitlower. The transfer of investments between unit liked funds is done at the is made. Impairment occurs where the carrying value of the asset exceedsprevailing market price. the recoverable amount. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value ofNo transfer of investments is carried out between non-linked policyholders’ estimated future cash flows expected to arise from the continuing use offunds. the asset and its eventual disposal. If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists,2.12. Loans the recoverable amount is reassessed and the asset is reflected at the recoverable amount, subject to a maximum of depreciable historical cost.Loans are stated at historical cost, subject to provision for impairment, ifany. 2.14. Taxation2.13. Fixed assets and impairment 2.14.1. Direct taxes2.13.1. Tangible assets and depreciation Income tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961) and deferred taxTangible assets are stated at acquisition cost less accumulated depreciation charge or credit (reflecting the tax effects of timing differences betweenand impairment loss, if any. Cost includes the purchase price net of any trade accounting income and taxable income for the year).discounts and rebates, any import duties and other taxes (other than thosesubsequently recoverable from the tax authorities) and any cost directly Current tax is the amount expected to be paid to the tax authorities afterattributable to bring the asset to its working condition for its intended taking credit for allowances and exemptions in accordance with the Incomeuse and other incidental expenses incurred up to that date. Subsequent Tax Act, 1961.expenditure incurred on tangible assets is expensed out except where suchexpenditure results in an increase in future benefits from the existing assets The deferred tax asset and liabilities are recognised using the tax rates thatbeyond it’s previously assessed standard of performance. have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised and carried forward only to the extentAsset costing up to ` 5,000 are fully depreciated in the year of acquisition. there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. However,The rates of depreciation used by the Company for various category of deferred tax asset in respect of unabsorbed depreciation or carried forwardassets, as detailed below, are the higher of the rates as determined based loss are recognised only if there is a virtual certainty of realisation of suchon the managements estimate of useful life or the rates prescribed in assets. Deferred tax assets are reviewed at each Balance Sheet date andSchedule XIV to the Companies Act, 1956. written down or written up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realised.Asset Depreciation ratesOffice buildings on freehold land 1.63% The Company allocates tax to the participating lines of business in orderImprovement to leasehold properties to ensure that the expenses pertaining to and identifiable with a particular Depreciated over the lease period, line of business are represented as such to enable a more appropriateFurniture and fixtures subject to a maximum of 9 years presentation of the financial statements. Accordingly, tax charge/credit onOffice equipment surplus/deficit arising from the participating line of business is disclosedInformation technology equipment 15% separately in the Revenue account. 25%Communication networks and servers 33.3%, 2.14.2. Indirect taxesMotor vehicles except for tablets which is 50% 25% Service tax liability on life insurance service is set-off against the service tax 20% credits available from tax paid on input services. Unutilised credits, if any,Depreciation is provided using straight-line method (‘SLM’) prorated from307 Consolidated Receipts & Payments Account 308 Schedules 327

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014are carried forward for future set-off, where there is reasonable certainty 2.17. Foreign exchange transactionsof utilisation. Initial recognition: Foreign currency transactions are recorded in Indian2.15. Provisions and contingencies Rupees, by applying to the foreign currency amount the exchange rateProvisions are recognised in respect of present obligations as a result of a between the Indian Rupee and the foreign currency at the date of thepast event and it is probable that an outflow of resources will be required transaction.and a reliable estimate can be made of the amount of the obligation. Adisclosure of a contingent liability is made when there is a possible Conversion: Foreign currency monetary items are translated using theobligation or present obligations that may, but probably will not, require an exchange rate prevailing at the reporting date. Non-monetary items, whichoutflow of resources or it cannot be reliably estimated. When there is a are measured in terms of historical cost denominated in a foreign currency,possible obligation or a present obligation in respect of which the likelihood are reported using the exchange rate at the date of the transaction. Non-of outflow of resources is remote, no provision or disclosure is made. monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rateContingent assets are neither recognised nor disclosed. at the date when such value was determined.2.16. Segmental reporting Exchange differences: Exchange differences are recognised as income orIn case of Life insurance business, based on the primary segments as expenses in the period in which they arise.identified under IRDA (Preparation of Financial Statements and Auditors’Report of Insurance Companies) Regulations 2002 (‘the Regulations’) read 2.18. Earnings per sharewith AS 17 on “Segmental Reporting” prescribed in the Companies Act,1956 and rules thereunder, the Company has classified and disclosed Basic earnings per share are calculated by dividing the profit or loss aftersegmental information separately for Shareholders’ and Policyholders’. tax for the year attributable to equity shareholders by the weighted averageWithin Policyholders’, the businesses are further segmented into number of equity shares outstanding during the year. For the purpose ofParticipating (Life and Pension for Group and Retail segments put together), calculating diluted earnings per share, the profit or loss after tax for the yearNon-Participating, Linked (Life, Pension, Health and Group), Health and attributable to equity shareholders and the weighted average number ofAnnuity. shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares which could have been issued on the conversion ofThere are no reportable geographical segments, since all business is all dilutive potential equity shares.written in India. Potential equity shares are deemed to be dilutive only if their conversionThe allocation of revenue, expenses, assets and liabilities to specific to equity shares would decrease the net profit per share from continuingsegments is done in the following manner, which is applied on a consistent ordinary operations. Potential dilutive equity shares are deemed to bebasis. converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the Revenue, expenses, assets and liabilities that are directly identifiable proceeds receivable had the shares been actually issued at fair value. to the segment are allocated on actual basis; Dilutive potential equity shares are determined independently for each period presented. Other revenue, expenses (including depreciation and amortisation), assets and liabilities that are not directly identifiable to a segment are 2.19. Cash and cash equivalents allocated based on the relevant drivers which includes: Cash and cash equivalents for the purpose of Receipts and Payments Number of policies account include cash and cheques in hand, bank balances, liquid mutual funds and other investments with original maturity of three months or less Weighted annualised first year premium income which are subject to insignificant risk of changes in value. Annualised premium since inception 2.20. Transfer pricing policy Sum assured All the transactions between the Company and its subsidiary are on arm’s length basis. The Company and its Subsidiary have formally defined and Total premium income agreed on a transfer pricing policy whereby all common costs are allocated on actual cost basis. Medical cases Funds under management Commission Total operating expenses (for assets and liabilities) Use of asset (for depreciation expense)328 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS3. Notes to Accounts3.1. Contingent liabilitiesParticulars At March 31, 2014 (` ‘000)Partly-paid up investments - At March 31, 2013Claims, other than those under policies, not acknowledged as debts comprising of: -- Claims made by vendors for disputed payments- Claims for damages made by landlords (of premises taken on lease) 101,258 101,038- Claims made by employees and advisors for disputed dues and compensation 43,675 35,731Underwriting commitments outstanding (in respect of shares and securities) 4,086 2,955Guarantees given by or on behalf of the Company (refer note 1)Statutory demands/liabilities in dispute, not provided for (refer note 2) - -Reinsurance obligations to the extent not provided for 1,000 1,000Policy related claims under litigation in different consumer forums: 1,590- Claims for service deficiency -- Claims against repudiation - -Others (refer note 3)Total 155,220 155,916 146,586 137,984 1,536,996 1,350,000 1,987,821 1,785,214Notes:1. ` 1,000 thousand (Previous year: ` 1,000 thousand) guarantee placed with Pension Funds Regulatory and Development Authority (‘PFRDA’).2. ` 1,590 thousand pertains to a demand from Profession Tax authority, West Bengal which was settled in the Company’s favour during the year ended March 31, 2014.3. ` 1,536,996 thousand is on account of objections raised by office of the Commissioner of Service tax, Mumbai (through the Service Tax audit underEA-2000) on certain positions taken by the Company).3.2. Actuarial method and assumptions b. Reserves for guarantees available to individual and group insurance policies.The actuarial liability in respect of both participating and non-participatingpolicies is calculated using the gross premium method, using assumptions c. Reserves for cost of non-negative claw back additions.for interest, mortality, morbidity, expense and inflation and, in the case ofparticipating policies, future bonuses together with allowance for taxation d. Reserves for free look option given to policyholders calculated usingand allocation of profits to Shareholders. These assumptions are determined a free look cancellation rate of 3.10% (March 31, 2013: 2.64%) foras prudent estimates at the date of valuation with allowances for adverse individual policies issued in the two-month period preceding thedeviations. No allowance is made for expected lapses in the future. valuation date.The liability for the unexpired portion of the risk for the non-unit liabilities of e. Reserves for guaranteed insurability and guaranteed annuity optionslinked business and attached riders is the greater of liability calculated using given to policyholders.discounted cash flows and unearned premium reserves. f. Reserves for substandard lives.An unexpired risk reserve and a reserve in respect of claims incurred but notreported is held for one year renewable group term insurance. g. Reserves for lapsed policies eligible for revivals.The unit liability in respect of linked business is the value of the units 3.3. Encumbrance of assetsstanding to the credit of policyholders, using the Net Asset Value (`NAV’) The assets of the Company are free from all encumbrances except to theprevailing at the valuation date. extent assets or monies are required to be deposited as margin contributions for investment trade obligations of the Company or as mandated by theThe interest rates used for valuing the liabilities are in the range of 4.87% to court, as detailed below:5.77% per annum (The previous year’s rates were 4.43% to 6.26%). a. Assets deposited with National Securities ClearingMortality rates used are based on the published “Indian Assured Lives Corporation Limited (NSCCL) and Indian Clearing CorporationMortality (2006 – 2008) Ult.” mortality table for assurances and LIC (a) Limited (ICCL)96-98 table for annuities adjusted to reflect expected experience. Morbidityrates used are based on CIBT 93 table, adjusted for expected experience, or Fixed deposit of ` 1,050,200 thousand (March 31, 2013: ` 1,050,100on risk rates supplied by reinsurers. thousand) and ` 300,100 thousand (March 31, 2013: ` 100,000 thousand) has been deposited with NSCCL and ICCL respectively towards marginExpenses are provided for at least at current levels in respect of renewal requirement for equity trade settlement.expenses, with no allowance for any future improvement but with an allowancefor any expected worsening. Per policy renewal expenses are assumed to Terms of pledge: Physical custody of the fixed deposits are with respectiveinflate at 4.84% (The inflation assumption for the previous year was 5.41%). clearing houses, however the income accrued on these deposits shall be passed on to the Company on the maturity of the deposits. These depositsCertain explicit additional provisions are made, which include the following: can be invoked by the clearing houses in case of any default by the Company in settlement of equity transactions.a. Reserves for additional expenses that the Company may have to incur if it were to close to new business twelve months after the valuation date.307 Consolidated Receipts & Payments Account 308 Schedules 329

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014b. Assets encumbered with Clearing Corporation of India Limited (CCIL)Particulars At March 31, 2014 At March 31, 2013 Market value Amortised cost Market value Amortised costPledged under securities segmentGovernment securities 1,227,178 1,321,747 807,356 794,986Cash 70,000 70,000 60,000 60,000Pledged under CBLO segment (Collateralized Borrowing and Lending Obligation)Government securities 185,182 207,303 203,300 207,632Cash 100 100 100 100Terms of pledge: Physical custody of the securities is maintained with 3.5. Investment propertythe CCIL, however interest accrued on these securities is received by theCompany. The Company is not entitled to any interest income on the money In accordance with the IRDA Regulations, 2002 (Preparation of Financialdeposited with the CCIL towards margin requirements. These deposits, Statements and Auditors’ Report of Insurance Companies), the Company’sboth securities and cash, can be invoked by CCIL in case of any default investment property has been revalued. The market value of the propertyby the Company in settlement of trades in securities and CBLO segment. is based on valuation performed by an independent valuer at March 31, 2014. The opinion on market value by the independent valuer, is preparedc. Other encumbrances in accordance with the “The RICS Valuation Standards” published by theDeath claim settlement amount of ` 479 thousand (March 31, 2013: ` Nil) Royal Institution of Chartered Surveyors (“RICS”), subject to variation topertaining to one of the deceased policyholder has been invested in a fixed meet local established law, custom, practice and market conditions.deposit with ICICI Bank Limited based on the directive from the Hon. Patna The methods used in valuation of property includes “Direct comparableHigh Court with the condition that this sum cannot be withdrawn without approach”. The real estate investment property is accordingly valued atthe order of the Court. ` 854,400 thousand at March 31, 2014 (March 31, 2013: ` 890,000 thousand). The historical cost of the property is ` 185,521 thousand.Fixed deposits of ` 1,000 thousand (March 31, 2013: ` 9,700 thousand)is placed with State Bank of Travancore as a security towards guarantee 3.6. Impairment of investment assetsissued by the bank in favour of PFRDA (Refer note 3.1 Contingent Liability).Balance of ` 2,500 thousand (at March 31, 2013: ` Nil) is deposited with In accordance with the impairment policy of the Company, diminution inCorporation Bank towards margin requirement for equity trade settlement the value of investments has been recognised under the head “Provisionpertaining to Scheme E Tier I and II issued in favour of National Securities for diminution in the value of investments (Net)” in the Revenue accountClearing Corporation Limited. The margins are imposed by clearing houses and the Profit and Loss account. The total impairment loss recognised foron equity cash segment transactions for enabling settlement on T+2 basis. the year ended March 31, 2014 is ` 347,997 thousand (March 31, 2013:The physical custody of the mentioned fixed deposits is with the respective ` 98,743 thousand).clearing houses, however the income accrued on the fixed deposits shallbe passed on to the Company on encashment of the mentioned deposits. 3.7. Securities Lending and Borrowing Scheme (SLB)3.4. Commitments Equity shares transferred under SLB continue to be recognised on theCommitments made and outstanding (net of advances) for Company’s Balance Sheet as the Company retains all the associated risks and rewardsinvestment in Real estate (Investment property) is ` 1,064,037 thousand of these securities.(March 31, 2013: ` Nil). The value of equity shares lent by the Company under SLB and outstandingEstimated amount of contracts remaining to be executed on fixed assets to at March 31, 2014 is ` 416,765 thousand (March 31, 2013: ` Nil). Thethe extent not provided for (net of advance) is ` 117,217 thousand (March equity shares were lent from the unit linked portfolio.31, 2013: ` 180,842 thousand).There are no loan commitments made by the Company (March 31, 2013: ` Nil).3.8. Deferred taxesDeferred tax asset is recognised on the Company’s eligible tax losses to the extent that there is virtual certainty supported by convincing evidence thatsufficient future taxable income will be available against which such deferred tax asset can be realised.The deferred tax position and the movement for the year ended March 31, 2014 is summarised below:Particulars At April 1, 2013 (Charge)/ Credit (` ‘000) for the year At March 31, 2014Deferred tax assets on:- Carry forward of unabsorbed tax losses 12,828 (12,828) -- Linked funds for future appropriation 65,369 (50,074) 15,295Total 78,197 (62,902) 15,295Deferred tax liability on:- Amortisation of computer software and incorporation expenses (net) (201) 5 (196)Total (201) 5 (196)*The deferred tax asset on carried forward unabsorbed losses was recognised based on estimated taxable profit expected to contractually be earned in the future from thecurrent in-force life insurance contracts.330 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTSDeferred tax charge for the year ended March 31, 2014 is ` 62,897 account and the Profit and Loss account for the year ended March 31, 2014thousand (March 31, 2013: ` 975,209 thousand). is ` 299,104 thousand (year ended March 31, 2013: ` 343,632 thousand). The future minimum lease payments in respect of these non-cancellableAn amount of ` 384,181 thousand (March 31, 2013: ` 234,428 thousand) leases at the Balance Sheet date are summarised below:has been charged on the total surplus in the participating line of business inline with the Company’s accounting policy. As the Company has unabsorbed (` ‘000)losses as per Income Tax Act there is no current tax liability, the tax on totalsurplus of participating line of business has been offset by a corresponding Particulars March 31, 2014 March 31, 2013credit in the Profit and Loss account. Not later than one year 217,472 300,8533.9. Operating lease commitments Later than one year but not later 201,650 418,620The Company takes premises, motor vehicles, office equipments, computers, than five yearsservers and modular furniture on operating lease. Certain lease arrangementsprovide for cancellation by either party and also contain a clause for renewal Later than five years --of the lease agreement. Lease payments on cancellable and non-cancellableoperating lease arrangements are charged to the Revenue account and the 3.10. Assets given on operating leaseProfit and Loss account over the lease term on a straight line basis. The totaloperating lease rentals charged in the current year is ` 823,552 thousand The Company has entered into an agreement in the nature of leave and licence(year ended March 31, 2013: ` 964,002 thousand). for leasing out investment property. This is in the nature of operating lease and lease arrangement contains provisions for renewal. There are no restrictionsLease rentals pertaining to non-cancellable leases charged to the Revenue imposed by lease arrangement and the rent is not determined based on any contingency. The total lease payments received in respect of such lease recognised in Revenue account for the year ended March 31, 2014 is ` 52,973 thousand (for the year ended March 31, 2013: ` 39,992 thousand).3.11. Details of related parties and transactions with related partiesRelated parties and nature of relationship:Nature of relationship Name of the related partyHolding company ICICI Bank LimitedSubstantial interest Prudential Corporation Holdings LimitedFellow subsidiaries and entities jointly controlled by holding company ICICI Securities Limited ICICI Securities Inc. ICICI Securities Holding Inc. ICICI Securities Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Trusteeship Services Limited ICICI Investment Management Company Limited ICICI International Limited ICICI Bank UK PLC. ICICI Bank Canada ICICI Bank Eurasia Limited Liability Company ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust LimitedConsolidated under AS-21 by holding company ICICI Equity FundKey management personnel ICICI Strategic Investments Fund ICICI Kinfra LimitedSignificant influence I-Ven Biotech Limited Sandeep Bakhshi, Managing Director and CEO Puneet Nanda, Executive Director Sandeep Batra, Executive Director (effective January 1, 2014) Madhivanan Balakrishnan, Executive Director (held office till June 30, 2012) Tarun Chugh, Chief Distribution Officer (held office till November 30, 2013) Judhajit Das, Chief – Human Resources Avijit Chatterjee, Chief Actuary (held post of Appointed Actuary till April 21, 2013) Satyan Jambunathan, Appointed Actuary (appointed as Appointed Actuary, effective April 22, 2013) ICICI Prudential Life Insurance Company Limited Employees’ Group Gratuity Cum Life Insurance Scheme ICICI Prudential Life Insurance Company Limited Employees’ Provident Fund ICICI Prudential Life Insurance Company Limited Superannuation Scheme307 Consolidated Receipts & Payments Account 308 Schedules 331

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014The following represents significant transactions between the Company and its related parties: (` ‘000)Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/ (payable)ICICI Bank Limited Holding company Premium FY2014 FY2013 At March 31, 2014 At March 31, 2013 Interest income on investments 94,817 95,275 (497) (1,209) Recovery of expenses - Rent, rates and taxes 20,443 64,262 19,305 2,471 - Employees’ remuneration and 899 1,162 494 4,766 welfare benefits 15 - -- - Agents training, recruitment and incentives 1,135 - -- Benefits paid - Claim by death (70,948) (61,430) - - Reimbursement of other expenses - Legal and professional charges (1,350) (797) (138) (322) - Employees’ remuneration and (27,503) (9,498) (27,503) (9,498) welfare benefits - Rents, rates and taxes (853) (110) (46) (44) - Advertisement and publicity - (204) - - - Information technology cost (175,082) Administration support expenses (243,319) (266,465) (64,384) (51,771) Commission (1,645,409) (3,680,159) (291,109) - Interest and bank charges (3,478,901) (96,183) (59,320) Dividend (3,271,464) (66,622) Purchase of fixed assets (104,865) (130) (8,993) (6,966) Subscription to primary market (8,073,128) (1,407,146) - issuance - - Sale of fixed assets (2,212) - - - Purchase of investments - (4,088,018) - Sale of investments - Redemption of investments 1,745 3,056,895 - - Outstanding investments (6,138,806) 1,050,030 - - Cash & bank balances - - Proposed dividend 2,448,412 1,245,356 - Premium 5,00,000 (230,266) 1,492,638 Administration support expenses (2,216,153) 1,895,215ICICI Securities Limited Fellow subsidiary Commission 2,505 1,209 (173) (1,044,248) Brokerage (123,534) (54,719) (51,196) (681)ICICI Venture Funds Management Fellow subsidiary Sale of investments (272,036) (342,625) (9,444) -Company Limited Fellow subsidiary Premium (12,628) (9,192) (429) (25,850) - (102)ICICI Home Finance Company Limited Interest income on investments 52,467 - (718) - Recovery of expenses 2,273 2,638 (358)ICICI Securities Primary Dealership Fellow subsidiary - Rent, rates and taxes 37,068Limited Reimbursement of other expenses 63,856 125,594 40,087 - Legal and professional charges - - Miscellaneous Expenses - 22 - Commission - Redemption of investments - (503) - - Sale of investments - (126) (5) - Outstanding investments (118) - - Premium - - - - Interest income on investments 2,50,000 597,000 499,123 - Purchase of investments - (255) 746,387 Subscription to primary market 352 - 35,967 (221) issuance 75,350 - - 14,542 Sale of investments (3,330,056) 322 - - Outstanding investments (2,50,000) 53,858 - (5,277,860) - 2,064,848 - 782,816 - - 562,968 5,358,050 -332 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS (` ‘000)Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/ (payable)ICICI Prudential Asset Management Fellow subsidiaryCompany Limited Fellow subsidiary Premium FY2014 FY2013 At March 31, 2014 At March 31, 2013ICICI Lombard General Insurance 2,777 1,558Company Limited Substantial interest Premium (479) (291) Benefits paidPrudential Corporation Holdings Significant influence Claims received (loss of asset) 5,774 5,679 (591) (528)Limited Significant influence Reimbursement of other expenses - (2,000) - - Significant influence - Rent, rates and taxes 12,000 - -ICICI Prudential Life Insurance Key management Employees’ remuneration and 607Company Limited Employees’ Group personnel welfare benefitsGratuity Cum Life Insurance Scheme Purchase of investments (6,546) (7,961) (257) (195)ICICI Prudential Life Insurance Relatives of key Sale of investments (182,935) (169,343) 53,755 42,047Company Limited Superannuation management Security deposit outstandingScheme personnel Recovery of expenses - (1,696,367) - -ICICI Prudential Life Insurance - Employees’ remuneration and 676,905 887,478 - -Company Limited Employees’ welfare benefits - 1,157 1,272Provident Fund Reimbursement of other expenses (115)Key management personnel - Employees’ remuneration and welfare benefits 7,684 6,818 1,465 2,557Key management personnel - Agents training, recruitment and incentives (1,918) (1,852) (1,494) (1,661) Dividend Proposed dividend (17,018) ( 25,947) (13,629) (25,947) Premium income Contribution to trust (2,836,504) (1,149,433) - - - - (778,648) (366,898) Premium income Contribution to trust 109,154 194,593 (287) (308) (109,134) (194,595) - - Contribution to trust 8,830 8,958 - - Premium (8,830) (8,958) - - Dividend Managerial remuneration (205,435) (211,880) (32,061) (36,087) Employees’ remuneration and welfare benefits 1,292 710 - - Employee stock options (144) (9) (127) - outstanding (numbers) (156,629) (136,255) - Employee stock options exercised1 - Premium income -- 1,137,500 Benefits paid 1,195,375 -- 30 257 27 77,500 - (5) - - - -1. The options exercised have been reported at face valueExpenses are disclosed gross of service tax307 Consolidated Receipts & Payments Account 308 Schedules 333

334 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet 3.12. Segmental reporting ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED Segment wise information of various items as required under AS 17 “Segmental Reporting” are given below: For the year ended March 31, 2014 (` ‘000) Segments Particulars Par Life Par Pension Non Par Annuity Health Linked Life Linked Linked Linked Shareholders’ Total 15,492,047 3,335,820 26,803,119 Non Par Pension Health Group 3,999,267 219,165,702 Segment revenue (excluding 216,097 108,408,549 44,251,322 2,265,949 contribution from the Shareholders’ 3,598,737 10,794,795 account) 7,442,044 299,943 Segment result - Surplus/ deficit 1,424,744 525,385 603,971 (599,565) 335,767 1,755,594 302,611 3,586,147 15,676,641 (net of contribution from the 23,402 4,593 Shareholders’ account) 89,064 478 83,030 1,460 707 260,165 (17,807,724) 1,225,336 5,314 1,227 469,440 Depreciation/amortisation 6,111,549 (1,680,184) 19,596,384 3,142,235 (191,140) 44,219,271 2,117,250 263,006 56,995,983 Significant non-cash expenses* For the year ended March 31, 2013 (` ‘000) Particulars Par Life Par Pension Non Par Annuity Segments Linked Life Linked Linked Linked Shareholders’ Total 10,955,812 4,961,715 26,256,962 Non Par Health 81,336,042 Pension Health Group Segment revenue (excluding 195,365 2,096,763 17,767,857 4,177,840 200,494,035 contribution from the Shareholders’ 3,681,145 49,064,534 account) 165,275 245,474 Segment result - Surplus/ deficit 586,129 507,883 (5,494,043) (136,477) (628,032) 4,932,781 9,143,773 4,101,171 13,423,934 (net of contribution from the 13,900 4,729 Shareholders’ account) 34,190 393 154,081 507 1,141 179,850 20,822 1,018,876 6,318,915 1,038 410,651 Depreciation/amortisation 3,998,837 (302,932) 19,242,135 2,896,583 704,928 - 26,099,780 Significant non-cash expenses* 6,431,990 (14,209,552) * comprises of change in valuation of policy liabilities, provisions for diminution in the value of investments (net), provision for doubtful debts and bad debts written off. Total cost incurred during the year ended March 31, 2014 to acquire assets that are expected to be used during more than one period amount to ` 805,882 thousand (Previous year: ` 320,123 thousand). ANNUAL REPORT FY2014

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS3.13. Employee benefitsProvision for staff benefits as per AS 15 (Revised):(A) Defined contribution plansThe amount recognised as an expense during the year is ` 40,678 thousand (year ended March 31, 2013: ` 43,089 thousand).(B) Defined benefit plansGratuityThe Gratuity plan of the Company provides for a lump-sum payment to vested employees at retirement, termination of employment or resignation fromemployment. Vesting happens only on completion of 5 years of continuous service with the company. However, in case of death of an employee duringthe course of an active employment, the gratuity is paid even if the employee has not completed 5 years of continuous service. The payment is basedon employee’s last drawn salary and tenure as prescribed in the Company’s policy. The gratuity liability of the Company is actuarially determined at eachBalance Sheet date using projected unit cost method. (` ‘000)Particulars Year endedReconciliation of benefit obligations and planned assets for the period: March 31, 2014 March 31, 2013Present value of the defined benefit obligations at March 31 (A)Fair value of plan assets at March 31 (B) 593,293 500,636Net liability recognised in Balance Sheet at end of reporting period (B-A) 554,816 476,280Total net cost recognised as employee remuneration in Revenue/Profit and loss account (38,477) (24,356) 116,946 132,860Change in defined benefit obligation: 500,636 397,433Opening obligations at April 1 71,994 63,056Service cost 40,317 34,272Interest cost 46,119 59,557Actuarial loss 6,741Liability assumed on transfer of employee (72,514) -Benefits paid 593,293 (53,682)Present value of the defined benefit obligations at March 31 (A) 500,636Change in Plan Asset: 476,280 301,856Opening plan assets, at fair value at April 1 37,164 23,009Expected return on plan assets 4,319 10,794Actuarial gain 102,826 194,303Contributions 6,741Assets acquired on transfer of employee (72,514) -Benefits paid 554,816 (53,682)Fair value of plan assets at March 31 (B) 476,280Cost for the year: 71,994 63,056Service cost 40,317 34,272Interest cost (37,164) (23,009)Expected return on plan assets 41,800 48,763Actuarial loss 9,778Past service cost - 132,860Total net cost recognised as employee remuneration in Revenue/Profit and loss account 116,947Investment details of plan assets: 100.0% 100.0%Plan assets invested in insurer managed funds 9.0% 10.0%Fund earning rateAsset allocation: 35.3% 31.5%- Debentures and bonds 18.7% 17.8%- Fixed deposits 14.2% 19.5%- Government securities 15.8% 15.3%- Equity shares 11.8% 10.5%- Money market instruments 4.2% 5.4%- Others 100.0% 100.0%TotalAssumptions: 8.7% 7.8%Discount rateSalary escalation rate *307 Consolidated Receipts & Payments Account 308 Schedules 335

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014Particulars Year endedGrade I and II March 31, 2014 March 31, 2013Grade III and above- Year 1 5.0% 5.0%- Year 2 to 3- Year 4 to 6 8.0% 10.0%- Year 7 onwards 8.0% 8.0%Estimated rate of return on plan assets # 8.0% 7.0%Expected future contribution from employer for next financial year 8.0% 5.0% 7.5% 7.5% 120,000 150,000* Salary escalation rate considered in valuation take into account impact of inflation, seniority, promotion and other factors impacting future salary cost.# Expected rate of return on plan assets is based on our expectation of the average long-term rate of return expected on investments of fund during the estimated term of obligations.Experience adjustments on gratuity provisioningParticulars March 31, 2014 March 31, 2013 Period ended March 31, 2011 (` ‘000) 593,293 500,636 328,569Defined benefit obligation 554,816 476,280 March 31, 2012 204,073 March 31, 2010Plan assets (38,477) (24,356) 397,433 261,481Surplus/(deficit) 301,856 (124,496) 233,791Experience adjustments (95,577) (27,690)- on plan liabilities- on plan assets 26,710 49,715 24,870 38,548 1,650 4,319 10,794 6,835 (20,827) 4,158Provident fund same as the projected unit credit method in respect of past service. The assumptions used for valuation are:Provident fund benefits are aimed at providing security to staff membersand their dependents on retirement, disability or death. Both employee Particulars March 31, 2014 March 31, 2013and the company contribute an equal percentage of the basic salary a Discount rate per annumpart of which goes to the fund, and balance portion is contributed to the 8.7% 7.8%government administered pension fund. The provident fund is managed byICICI Prudential Life Insurance Company Employees’ Provident Fund Trust. Compensated absenceThe minimum rate at which the annual interest is payable by the trust to Liability for compensated absence for employees is determined based onmembers is prescribed by the Government. The Company has an obligation actuarial valuation which has been carried out using the projected accruedto make good the shortfall, if any, between the Government prescribed rate benefit method which is same as the projected unit credit method inand actual return earned by the provident fund. respect of past service. The assumptions used for valuation are:As there is net surplus in the plan, no liability needs to be provided for in the Particulars March 31, 2014 March 31, 2013books of accounts of the Company. Discount rate per annum Salary escalation rate (per annum) 8.7% 7.8%The assumptions used in actuarially valuing the defined benefit obligations Grade I and IIof interest rate guarantee are as follows: Grade III and above 5.0% 5.0% - Year 1Particulars March 31, 2014 March 31, 2013 - Year 2 to 3 8.0% 10.0%Discount rate for the term of the obligation - Year 4 to 6 8.0% 8.0%Average historic yield on the investment 8.7% 7.8% - Year 7 onwards 8.0% 7.0%portfolio 8.0% 5.0%Discount rate for the remaining term to 8.9% 8.9%maturity of the investment portfolioExpected investment return 8.9% 8.0% Leave accumulation policy of the Company is given below:Guaranteed rate of return 8.7% 8.7% Criteria Grade I-IV Grade V and above 8.8% 8.5% Employment upto 5 years NA 60 days Employment more than 5 years 60 days 90 days(c) Other long term benefits While computing liability, 2% leave availment has been assumed for eachLong term incentive scheme subsequent year following the valuation date.Liability for the scheme is determined based on actuarial valuation whichhas been carried out using the projected accrued benefit method which is336 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI CONSOLIDATED FINANCIAL STATEMENTS3.14. Employee Stock Option Scheme (“ESOS”)The Company Employees Stock Option Scheme (2005) (“ESOS 2005”) is approved by the Shareholders of the Company and administered by the BoardCompensation and Nominations Committee. There are presently six tranches granted under the Company Employee Stock Option Scheme (ESOS) by nameFounder I, 2004-05, 2005-06, 2006-07, Founder II and 2007-08. ESOS 2005 permits the grant of share options up to 3% of the issued capital of Company.The maximum number of options that can be granted to any eligible employee is restricted to 1% of the issued capital.Options are granted with an exercise price which is computed based on the new business achieved profits (NBAP) applying a suitable multiple, consistentwith the industry and Company context. The exercise price was finalised by the Board Compensation and Nominations Committee in concurrence with theBoard of Directors of the Company. The salient features of tranches issued are as stated below:Date of grant Founder I 2004-05 2005-06 2006-07 Founder II 2007-08 March 28, 2005 April 25, 2005 April 26, 2006 April 24, 2007 April 25, 2008Number of options granted 2,662,500 3,782,400 4,633,250 6,534,675 (2006-07) 6,101,000Graded Vesting Period 470,000 (Founder II)1st Year2nd Year 50% of options granted 25% of options granted 25% of options granted 25% of options granted 25% of options granted3rd Year 25% of options granted 25% of options granted 25% of options granted 25% of options granted 25% of options granted4th Year 25% of options granted 25% of options granted 25% of options granted 25% of options granted 25% of options grantedMaximum term of options grantedMode of settlement - 25% of options granted 25% of options granted 25% of options granted 25% of options granted Later of the tenth anniversary of the date of grant of options or the fifth anniversary of the date of vesting of options EquityExercise price of all the options outstanding as at March 31, 2014 for The weighted average price of options exercised during the year is ` 69.3Founder I (2003-04) scheme, 2004-2005 scheme, 2005-06 scheme, 2006- (year ended March 31, 2013: ` 70.0). The weighted average remaining07 scheme, Founder II and 2007-08 scheme is ` 30, ` 42, ` 70, ` 130, ` contractual life of options outstanding at the end of the year is as follows:130 and ` 400 respectively. At March 31, 2014 At March 31, 2013A summary of status of Company’s Employee Stock Option Scheme interms of options granted, forfeited and exercised is given below: Exercise price Options Weighted Options Weighted range (in `) outstanding average outstanding average remaining remainingParticulars March 31, 2014 March 31, 2013 30 contractual contractualOutstanding at the beginning of the year 12,287,604 12,778,898 42 life (in years) life (in years)Add: Granted during the year - - 70Less: Forfeited/lapsed during the year (2,087,905) (401,169) 130 113,390 1.0 90,640 2.0Less: Exercised during the year (330,501) (90,125) 400Outstanding at the end of the year 9,869,198 12,287,604 Total 663,385 1.1 730,688 2.1Exercisable at the end of the year 9,869,198 12,287,604 2,077,290 2.1 2,444,492 3.1 3,597,508 3.1 4,537,691 4.1 3,417,625 4.1 4,484,093 5.1During the year, the Company has recognised a compensation cost of ` Nil 9,869,198 3.0 12,287,604 4.1(Previous year: ` Nil) as the intrinsic value of the options.For the year ended March 31, 2014 there would have been no impact on 3.15. Foreign exchange gain/lossthe Revenue account and Profit & Loss account had the Company followedthe fair value method for valuing its options. For the year ended March 31, Transactions in foreign currencies are recorded at exchange rate prevailing2013 there would have been an additional cost of ` 2,416 thousand under on the date of transaction. The exchange difference between the ratethe fair value method. Accordingly, the profit after tax for the year ended prevailing on the date of transaction and on the date of settlement isMarch 31, 2013 would have been at ` 14,956,976 thousand. Consequently, recognised as income or expense, as the case may be. The net foreignthe Company’s basic earnings per share would have been at ` 10.47 and exchange loss debited to Revenue account for the year ended March 31,diluted earnings per share would have been at ` 10.44 for the year ended 2014 is ` 3,173 thousand (year ended March 31, 2013: loss of ` 3,061March 31, 2013 . thousand).307 Consolidated Receipts & Payments Account 308 Schedules 337

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY20143.16. Earnings per share 3.18. Dividend The Board of Directors of the Company have during the year approved andSr. Particulars March 31, (` ‘000) paid an interim dividend aggregating to ` 7,931,517 thousand (PreviousNo. 2014 March 31, year: ` 3,429,335 thousand). 15,655,897I Net profit/(loss) as per profit and 2013 The total interim dividend appropriation for the year amounted to loss account available for equity 1,429,053,739 14,958,350 ` 9,279,478 thousand including corporate dividend tax of ` 1,347,961 shareholders for both basic and 1,429,053,739 thousand (Previous year: ` 3,985,659 thousand including corporate diluted earnings per equity share of 1,428,876,063 dividend tax of ` 556,324 thousand). ` 10 each 3,089,612 1,428,876,063 The Board of Directors have also proposed a final dividend of ` 3,001,437II Weighted average number of equity 1,432,143,351 3,749,508 thousand (Previous year: ` 1,413,959 thousand). shares for earnings per equity share 10.96 1,432,625,571 These dividends were declared from current year’s profit and the Company(a) For basic earnings per equity share 10.93 has transferred 10% of current year’s profit amounting to ` 1,566,656 10.47 thousand to General Reserves (Previous year: ` 1,495,939 thousand) as(b) For diluted earnings per equity share 10.44 required by the Companies (Transfer of Profits to Reserves) Rules, 1975. Number of equity shares for basic 3.19. Debit balance in Profit & Loss account earnings per equity share as per (II) (a) In accordance with IRDA (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations 2002, debit balance in Profit Add: Weighted average outstanding and Loss account carried to Balance Sheet has been shown as deduction employee stock options deemed to from General reserve to the extent of ` 4,446,769 thousand (Previous be issued for no consideration year: ` 2,880,113 thousand) and the balance ` 5,900,093 thousand (Previous year: ` 8,764,981 thousand) is shown in the Balance Sheet under Weighted number of equity shares application of funds. for diluted earnings per equity share 3.20. Previous year comparativesIII Earnings per equity share Previous period’s figures have been regrouped and reclassified wherever necessary to conform to current period’s presentation. Basic (in `) Diluted (in `)3.17. The Micro, Small and Medium Enterprises Development(MSMED) Act, 2006There are no payments made to or dues outstanding to Micro, Small andMedium Enterprises beyond the timelines prescribed by the Act (March31, 2013: ` Nil).As per our report of even date attached. For and on behalf of the Board of DirectorsFor S.R.BATLIBOI & CO. LLP For S.B.Billimoria & Co.Chartered Accountants Chartered Accountants Chanda Kochhar V. Sridar K. Ramkumar Sandeep Bakhshi Chairperson Director Director Managing Director and CEOICAI Firm Registration No.301003E ICAI Firm Registration No.101496Wper Shrawan Jalan Sanjiv V. Pilgaonkar Sandeep Batra Satyan Jambunathan Binay Agarwala Sanaulla KhanPartner Partner Executive DirectorMembership No. 102102 Membership No. 39826 Appointed Actuary Executive Vice President Company SecretaryPlace : MumbaiDate : April 22, 2014338 302 Independent Auditors’ Report 303 Consolidated Revenue Account 305 Consolidated Profit & Loss Account 306 Consolidated Balance Sheet

INSURANCE AAJ BADAL RAHA HAI OTHER INFORMATIONNEW BUSINESS PROFIT REPORTINGfor the financial year ended March 31, 2014INTRODUCTION ECONOMIC ASSUMPTIONSLife insurance policies when sold usually result in an accounting loss in the The Company follows an active approach to setting the basis of economicfirst policy year. This is called New Business Strain and it arises largely due assumptions. The economic assumptions used for calculation of NBP areto the acquisition costs associated with selling insurance and the prudent as follows:margin in the reserving basis. Measuring sales performance using statutoryprofit/loss figures then becomes paradoxical as higher sales result in bigger Particulars FY2013 FY2014losses. This also does not take into account the actual value created by Inflation 6.85% 7.06%the sale, which will accrue to the Company over the life of the policy. To Investment returns by asset classovercome these issues, New Business Profit (NBP) is used to measure - Cash 7.35% 7.56%sales performance and value created by new business sales. - Medium term G. sec 8.35% 8.56% - Long term G. sec 8.85% 9.06%DEFINITION - Corporate bonds (AAA rated) 9.30% 9.51% - Equity 13.70% 13.91%NBP is a measure of the economic value of the new business written during Risk discount rate 13.70% 13.91%a defined period. It is measured as the present value of the future profitsfor the Shareholders on account of new business sales, based on a given Taxation at the current rate of 12.5% (plus applicable surcharge andset of assumptions, net of the accounting loss recognised on sale. Actual education cess) is assumed to apply to life and health business throughoutexperience could differ from these assumptions especially in respect of the projection period. The pensions business is assumed to be tax exempt.expense overruns at inception. RESULTSNBP has been calculated net of tax after providing for the cost of capital thatwould be required to support the business. The cost of capital is calculated Particulars FY2013 (` million)as the present value of the increase in solvency capital along with the net of NBP 5,294 FY2014tax interest earned on the solvency capital, at the Risk Discount Rate (RDR). 4,273BASIS OF PREPARATION SENSITIVITYNBP incorporates best estimate assumptions of future rates of investment The sensitivity of the NBP to the economic assumptions is given below:returns, policy discontinuances, mortality, expenses, inflation, taxation,bonus rates and statutory valuation bases. (` million) -1% Particulars Base Case +1% Risk free rate 4,273 4,371 4,159 Risk discount rate 4,273 3,899 4,679 339

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014GLOSSARY OF TERMSANNUALISED PREMIUM EQUIVALENT (APE) CREDIT RISKA measure of new business activity that is calculated as the sum of The risk of loss if another party fails to meet its obligations, or fails to do soannualised regular premiums from new business plus ten percentage of in timely fashion.single premiums from new business written during the period. DEATH BENEFITAFFILIATED INVESTMENTS The amount of benefit which is payable on death as specified in the policyInvestments made to parties related to the insurer. document. This is stated at the inception of the contract.ANNUITY BUSINESS ENDOWMENT BUSINESSIt means the business of effecting contracts to pay annuities on human life It is a contract to pay benefit on the life assured surviving the stipulatedbut does not include contracts under pension business. Annuities provides date or on death of the life assured before maturity.for a series of payments to be made at regular intervals in return for acertain sum paid upfront. EXPENSE RATIOA deferred annuity is a contract to pay out regular amounts of benefit Total expenses including commission divided by total premium less 90% ofprovided to the annuitant at the end of the deferred period (the vesting single premium.date) when annuity payment commences for a specified period of timesuch as number of years or for life. FIRST YEAR PREMIUMAn immediate annuity is a contract to pay out regular amounts of benefit Insurance premium that is due in the first policy year of a life insurancewherein the contract commences payments, immediately after the contract.contract is concluded. GRIEVANCE RATIOASSET-LIABILITY MANAGEMENT Number of grievances divided by policies issued in the same period (perIt refers to the management of an insurer’s assets with specific reference 10,000).to the characteristics of its liabilities so as to optimize the balance betweenrisk and return. It is the ongoing process of formulating, implementing, HEALTH INSURANCE BUSINESSmonitoring and revising strategies related to assets and liabilities to achievean insurer’s financial objective, given the insurer’s risk tolerance and other It means the effecting of contracts which provide sickness benefits orconstraints. medical, surgical or hospital expense benefits, whether in-patient or out- patient, on an indemnity, reimbursement, service, pre-paid, hospital orBASIC EARNING PER SHARE other plans basis, including assured benefits and long-term care.Net profit after tax divided by weighted average number of equity shares IN-FORCEoutstanding during the year. An insurance policy or contract reflected on records that has not expired,BONUSES matured or otherwise been surrendered or terminated.Bonuses refer to the non-guaranteed benefit added to the participating INSURANCE PENETRATION & DENSITYlife insurance policies and are the way in which policyholders receive theirshare of the profits of the policies. Penetration - Insurance premium as % of GDP. Density - Insurance premium per unit of population. Both are parameters used to compare extent of insurance across economies.BOOK VALUE PER SHARE INSURANCE PREMIUMCapital plus reserves divided by outstanding number of equity shares. It is the consideration the policyholder will have to pay in order to secure the benefits offered by the insurance policy.CLAIMS ACCEPTANCE RATIORatio of insurance claims accepted to claims submitted.340 339 New Business Profit Reporting 340 Glossary of Terms 343 Additional Information

INSURANCE AAJ BADAL RAHA HAI OTHER INFORMATIONINVESTMENT LINKED PRODUCTS OR UNIT LINKED MORTALITY RATEPRODUCTS A measure of the number of deaths, varying by such parameters as age,A life insurance contracts or health insurance contracts under which gender and health, used in pricing and computing liabilities for futurebenefits are wholly or partly to be determined by reference to the value of policyholders of life and annuity products, which contain mortality risks.underlying assets or any approved index. NET ASSET VALUE (NAV)INVESTMENT YIELD It is the value of each unit of the fund on a given day.A measure of the income received from an investment compared to theprice paid for the investment. Normally expressed as a percentage. NET PREMIUMLAPSE Life Insurance premium net of reinsurance premium ceded to third-party reinsurance.A life insurance contract lapses if the policyholder does not pay thepremiums within the stipulated period. NEW BUSINESS STRAINLIFE INSURANCE BUSINESS Life insurance policies when sold usually result in an accounting loss in the first policy year. This is called New Business Strain and it arises largely dueLife insurance business means the business of effecting contracts of to the acquisition costs associated with selling insurance and the prudentinsurance upon human life, including any contract whereby the payment margin in the reserving basis.of money is assured on death (except death by accident only) or thehappening of any contingency dependent on human life. NON LINKED BUSINESSMATHEMATICAL RESERVES Life or health insurance contracts other than linked business. Also called as Conventional/Traditional business.Mathematical reserves mean the provision made by an insurer to coverliabilities arising under or in connection with policies or contracts for life NON-PARTICIPATING PRODUCT/POLICYinsurance business. Mathematical reserves also include specific provisionfor adverse deviations of the bases, such as mortality and morbidity rates, A life insurance policy where the policyholder is not entitled to a shareinterest rates, and expense rates, and any explicit provisions made, in the of the Company’s profits and surplus, but receives certain guaranteedvaluation of liabilities, in accordance with the regulations made by the benefits. Examples include pure risk policies such as fixed annuities, termAuthority for this purpose. insurance, critical illness and unit-linked insurance contracts.MATURITY BENEFIT PAID UP VALUEThe amount of benefit which is payable on maturity i.e. at the end of the It is one of the non-forfeiture options given to the policyholder in case ofterm, as specified in the policy document. This is stated at the inception premium default. In this option, the sum assured is proportionately reducedof the contract. to an amount which bears the same ratio to the full sum assured as the number of premiums actually paid bears to the total number originallyMORBIDITY RATE payable in the policy.It is a measure of number of persons belonging to a particular group, PARTICIPATING PRODUCT/POLICIEScategorized according to age or some other factor such as occupation, willsuffer a disease, illness, injury, or sickness. A life insurance policy where the policyholder is entitled to a share of the surplus.MORTALITY CHARGES PENSION BUSINESSMortality charges are the risk charges that are levied on the life cover partto provide the protection benefit to the policyholder. Pension business includes business of effecting contracts to manage investments of pension funds or superannuation schemes or contracts to pay annuities that may be approved by the IRDA in this behalf. 341

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ANNUAL REPORT FY2014PERSISTENCY RATIO RIDERIt is the percentage of life insurance policies remaining in force. In other A supplemental plan that can be attached to a basic insurance policy, withwords, it is the percentage of polices that have not lapsed. payment of additional premium.POLICY LIABILITIES SINGLE PREMIUMSThe policy liabilities under an insurance contract are the benefits an Single premium policies of insurance are those that require only a singleinsurance company has contractually agreed to pay to the policyholders, lump sum payment from the policyholder.plus its future expenses less future premiums. SUM ASSUREDREGULAR PREMIUM PRODUCT Sum Assured is the amount of money for which the insurance is taken.Life insurance product which requires regular periodic payment of premium. SURRENDERREINSURANCE The termination of a life insurance policy at the request of the policyholderReinsurance contract is an insurance contract between one insurance after which the policyholder receives the cash surrender value, if any, ofcompany (cedant) and another insurance company (reinsurer) to the contract.indemnify against losses on one or more contracts issued by the cedantin exchange for a consideration (the premium).The intent of reinsurance is SURVIVAL BENEFITfor an insurance company to reduce the risks associated with underwrittenpolicies by spreading risks across alternative institutions. The amount of benefit which is payable at specific interval, on survival to that period, during the period of contract as specified in the policyREINSURANCE CEDED PREMIUM document. This is stated at the inception of the contract.Premium paid by one insurance company to other (the “reinsurer”) to TOP-UP PREMIUMreduce the risks associated with underwritten policies by spreading risksacross alternative institutions. A top-up premium is an amount paid at irregular intervals during the period of contract. This is an additional amount of premium over and above theRENEWAL PREMIUM contractual basic premium charged at the commencement of the contract.Life insurance premiums falling due in the years subsequent to the first year UNDERWRITINGof the policy. The process by which an insurance company determines whether or notRETAIL WEIGHTED RECEIVED PREMIUM and on what basis it will accept an application for insurance.Premiums actually received by the insurers from individual customers UNIT LINKED FUND(excluding accrued/due but not paid) and weighted at ten percentage forsingle premiums. Unit linked fund pools together the premiums paid by policyholders and invest in a portfolio of assets to achieve the fund(s) objective. The price ofREQUIRED SOLVENCY MARGIN, AVAILABLE SOLVENCY each unit in a fund depends on how the investments in that fund perform.MARGIN AND SOLVENCY RATIO The fund will be managed by the insurer.Every insurer is required to maintain an excess of the value of assets overthe amount of liabilities of not less than an amount prescribed by the IRDA,which is referred to as a Required Solvency Margin. The actual excessof assets over liabilities maintained by the insurer is termed as AvailableSolvency Margin. The ratio of Available Solvency Margin to the RequiredSolvency Margin is called as Solvency margin.342 339 New Business Profit Reporting 340 Glossary of Terms 343 Additional Information

INSURANCE AAJ BADAL RAHA HAI OTHER INFORMATIONADDITIONAL INFORMATIONCONTACT INFORMATION EMAIL USAt ICICI Prudential Life Insurance Company Limited, we believe that all Customer: To know more about our policies or for any comments, queriesstakeholders and customers should have access to complete information or suggestions about our services and products or our website, pleaseregarding the Company, its products, its position, etc. write to [email protected] from your registered Email ID.The ICICI Prudential Life Insurance website: www.iciciprulife.com serves NRI Customers: To know more about our policies or for any comments,as an easy mode of communication for all customers/stakeholders. queries or suggestions about our services and products or our website, please write to [email protected] from your registered Email ID.Customers/stakeholders can also contact us as follows: Group Customers: To know more about our policies or for any comments,WRITE TO US queries or suggestions about our services and products or our website, please write to [email protected] Prudential Life Insurance Company Ltd.Vinod Silk Mills Compound, Group Annuity Customers: To know more about our group annuity policyChakravarthy Ashok Road, Ashok Nagar, or for any request, queries or suggestions about our services and products,Kandivali (East), Mumbai 400101 please write to [email protected] US Group Superannuation Customers: To know more about our group superannuation policy or for any request, queries or suggestions about our1860 266 7766 services and products, please write to [email protected] calling our customer service do not prefix + or 91 or 00 before the Online Customers: To know more about our policies or for any comments,number. queries or suggestions about our services and products or our website, please write to [email protected] : 24 x 7 for claimants; 9 am to 9 pm IST, Monday to Saturday(except national holidays). Customers within India are advised not to prefix WALK INTO ANY OF OUR OFFICES+ or 91 or 00 before the number. Customers outside India can call us onour international Customer Service Helpline : +91-22-61930777. You could walk into any of our offices located across the country, details of which can be obtained from branch locator section on our website:Charges as applicable www.iciciprulife.com 343