A. Significant Accounting Policies 1. Basis of Preparation The financial statements are brpared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles brscribed by the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations, 2002, ('the IRDA Financial Statements Regulations'), provisions of the Insurance Regulatory and Development Authority Act, 1999, the Insurance Act, 1938 and the accounting standards notified under Companies (Accounting Standards) Rules, 2006 in terms of Section 211(3C) of the Companies Act 1956, to the extent applicable and in the manner so required. The brparation of the financial statements in conformity with generally accepted accounting principles ('GAAP') requires that the Company's management make estimates and assumptions that affect the reported amounts of income and expenses for the year, reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively. 2. Revenue Recognition Premium income is recognised when due from policyholders, if there is no uncertainty of collectability. Premium on lapsed policies is recognised as income if such policies are reinstated. Top up brmiums are considered as single brmium. Income from linked policies, which include asset management fees and other charges, if any, are recovered from the linked funds in accordance with the terms and conditions of the policies and recognized when due. Interest income on investments and loans are recognised on an accrual basis. Dividend is recognised when the right to receive dividend is established. 3. Reinsurance Premium Ceded Reinsurance brmium ceded is accounted for at the time of recognition of brmium income in accordance with the treaty or in-principle arrangement with the reinsurer. 4. Policy Acquisition Costs Policy acquisition costs are expensed in the period in which they are incurred. Acquisition costs mainly consist of commission to insurance intermediaries, sales staff costs, rent, medical costs, policy printing expenses, stamp duty, and other related expenses to source and issue the policy. Claw back, if any, for the first year commission, is recognized in the year in which it is decided that it has become recoverable. 5. Claims Claims costs consist of the policy benefit amount and claim settlement costs, where applicable. Death and rider claims are accounted for on receipt of intimation. Annuity benefits and maturity claims are accounted when due. Surrenders under conventional policies are accounted on the receipt of consent from the insured to the quote provided by the Company. Surrenders and withdrawals under linked policies are accounted on receipt of intimation. Surrenders also include amounts payable on lapsed policies which is accounted for on the date of lapse. Surrenders and lapsation are disclosed at net of charges recoverable. Reinsurance claims receivable are accounted for in the period in which claims are settled. 6. Investments Investments maturing within 12 months from the balance sheet date and investments made with the specific intention to dispose off within twelve months from the balance sheet date are classified as "short term'' investments. Investments other than short term are classified as "long term" investments. Investments are recorded at cost on the date of purchase, which includes Brokerage, Clearing Corporation of India Limited(CCIL) charges and securities transaction tax, however excludes accrued interest (i.e. since the brvious coupon date), if any. Any impairment loss is recognized as an expense in the Revenue/Profit and Loss Account to the extent of the difference between the re-measured fair value of the security/investment and its acquisition cost as reduced by any brvious impairment loss recognized as an expense in the Revenue/Profit and Loss Account. Any reversal of impairment loss, earlier recognized in Revenue/Profit and Loss Account, is recognized in the Revenue/Profit and Loss Account. Real Estate-Investment Property Investment property rebrsents land or building held for investment purposes. Investment in the real estate investment property is valued at historical cost plus revaluation, if any. Revaluation of the investment property is done at least once in three years. Any change in the carrying amount of the investment property is taken to Revaluation Reserve. Debt Securities a) Non linked business, non unit reserve investments and Shareholders' investments Debt securities are categorised by asset class and are accounted as "held to maturity". Debt securities are stated at amortised cost. Discount or brmium on purchase of debt securities is amortised over the remaining period to maturity. b) Linked business All debt securities, including government securities under linked businesses are valued at market value, using CRISIL Bond Valuer / CRISIL Gilt Prices, as applicable. The discount or brmium on money market instruments which is the difference between the purchase price and the redemption amount is amortized and recognized in the revenue account on a straight line basis over the remaining period to maturity of these securities. Unrealised gains or losses arising on such valuation are recognised in the Revenue Account. Equity Shares a) Non linked business, non unit reserve investments and Shareholders' investments Listed equity shares are categorised as an asset class and each asset is valued at fair value being the lower of the last quoted closing prices on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Unrealised gains / losses arising due to change in fair value are recognised as part of equity under the head 'Fair Value Change Account'. Unlisted equity shares and other than actively traded equity shares are stated at historical cost subject to provision for diminution, if any, in the value of such investment determined separately for each individual investment. b) Linked business Listed equity shares are valued and stated at fair value, being the last quoted closing prices on National Stock Exchange (in case it is not traded on National Stock Exchange then last quoted closing price on the Bombay Stock Exchange is used) at the Balance Sheet date. Unrealised gains or losses arising on such valuation are recognised in the Revenue Account. Unlisted equity shares and other than actively traded equity shares are stated at historical cost subject to provision for diminution, if any, in the value of such investment determined separately for each individual investment. Mutual Funds a) Non linked business, non unit reserve investments and Shareholders' investments Mutual Fund units as at Balance Sheet date are valued at brvious day's net asset values. Unrealised gains/losses arising due to changes in the fair value of mutual fund units are recognized as part of equity under the head 'Fair Value Change Account'. b) Linked business Mutual Fund units are valued at brvious day's net asset values and unrealised gains/ losses arising due to changes in the fair value of mutual fund units are recognised in Revenue Account. Transfer from the Shareholders' Account to the Policyholders' Account Transfers of investments made with the objective of meeting the deficit in the Policyholders' Account, as and when made, are made as per the conservative approach, i.e. at the cost price or market price, whichever is lower. Transfer between Policyholders' Funds No transfers of investments are made between different Policyholders' Funds. Purchase / sale transactions between Units Linked Funds The purchase/sale of investments between Unit Linked Funds is based on the market price of the investments. Transfer of securities relating to Policyholders' Funds is effected at market value as of the brvious day closing. Inter-fund transfer of equity shares during market trading hours is recognized at the brvailing market price at cut - off time. 7. Policyholder Liability The policyholder liabilities are determined by the Company's Appointed Actuary following his annual investigation of the insurance policies issued by the Company. 8. Fixed Assets and Debrciation Fixed assets are reported at cost less accumulated debrciation and impairment, if any. Cost includes the purchase price and any cost directly attributable to bring the asset to its working condition for its intended use. Fixed assets individually costing less than Rs. 5,000 are fully debrciated in the year of purchase. Any additions to the original fixed assets are debrciated over the remaining useful life of the original asset. Debrciation is charged on pro-rata basis from the month of purchase and up to the brvious month of sale. Tangible Assets The Company has adopted the Straight Line Method of debrciation so as to debrciate 100% of the cost of the following type of assets at rates equal to or higher than those brscribed under Schedule XIV to the Companies Act, 1956, based on the management's estimate of useful life of such assets: Assets: Debrciation Rates Building: 1.63% Information Technology Equipment: 25.00% Furniture and Fixtures: 20.00% Office Equipment: 20.00% Leasehold improvements are amortized over lock in period of the leased brmises subject to a maximum of five years. Intangible Assets Intangible assets are reported at acquisition value with deductions for accumulated amortisation and impairment losses, if any. Intangible assets comprising of system software are stated at cost of acquisition, including any cost attributable for bringing the same to its working condition, less accumulated amortization. These are amortised over a period of four years. Any expenses on such software for support and maintenance payable annually are charged to Revenue Account. 9. Loans Loans are valued at historical cost, subject to provision for impairment, if any. 10. Preliminary Expenses Preliminary expenses (incurred prior to 1st April 2003) are amortized equally over a period of ten years. 11. Foreign Currency Transactions Transactions in foreign currency are recorded at the rate of exchange brvailing on the date of the transaction. Monetary assets and liabilities are translated at the year-end closing rates. Exchange gains and losses arising on such translations are recognized either in the Revenue/Profit and loss Account, as the case may be. 12. Segmental Reporting As per Accounting Standard 17 on "Segment Reporting" read with IRDA Financial Statements Regulations, the Company has brpared the Revenue Account and Balance Sheet for the ten primary business segments namely Participating, Non-Participating - Life, Non-Participating - Group Pension, Annuity, Pension, Health businesses, Unit Linked Life (Individual and Group), and Unit Linked Pension (Individual and Group). Since the business operations of the Company are carried out or given effect to in India only, this is considered as one geographical segment. The allocation of revenue, expenses, assets and liabilities to the business segments is done on the following basis: a) Revenues and expenses, assets and liabilities, which are directly attributable and identifiable to the respective business segments, are considered on an actual basis; and b) Other revenue, expenses, assets and liabilities which are not directly identifiable to a business segment though attributable and other indirect expenses which are not attributable to a business segment are allocated based on one of or combination of some of the following parameters, as considered appropriate by the management: i) effective brmium income ii) number of policies iii) number of employees iv) man hours utilised v) brmium income vi) mean fund size vii) sum assured The accounting policies used in segmental reporting are the same as those used in the brparation of the financial statements. 13. Employee Benefits (a) Short Term Employee Benefits All employee benefits payable within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries & bonuses, short term compensated absences, brmium for staff medical insurance (hospitalization), brmium for employee group term insurance scheme, employee state insurance scheme, employees deposit linked insurance and employee labour welfare fund etc. are recognized in the period in which the employee renders the related service. (b) Post-Employment Benefits The Company has both defined contribution and defined benefit plans. These plans are financed by the Company. (i) Defined Contribution Plans: The Company's Employee Superannuation Scheme and Employee Provident Fund Scheme (Company contribution), etc are the defined contribution plans. The contribution paid/payable under the schemes is charged to the Revenue Account during the period in which the employee renders the related service. (ii) Defined Benefit Plans: The Employees' Gratuity Scheme is a defined benefit plan. The brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation. Provision for Gratuity is accounted taking into consideration actuarial valuation of plan obligation and fair value of plan assets as at the Balance Sheet date. The Employees' Provident Fund Scheme (Company guarantees to pay interest at the rate notified by Provident Fund Authority) was a defined benefit plan upto October 2010. (c) Other Employee Benefits The obligation for long term employee benefits such as long term compensated absences, long term incentive plan are accounted based on actuarial valuation determined using the Projected Unit Credit Method and/or accrual basis over the expected service period. Actuarial gains and losses are recognized in the year of occurrence for all employee benefits. 14. Provisions, Contingent Liabilities and Contingent Assets Provisions are recognized in the accounts in respect of brsent legal obligations as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, and the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events, but their existence or otherwise would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are neither accounted nor disclosed. 15. Impairment of Assets The carrying amounts of assets are reviewed at the Balance Sheet date if there is any indicator of impairment based on the internal/external factors. An impairment loss is recognized wherever carrying amount of an asset exceeds its recoverable amounts. 16. Employee Stock Option Scheme The Company has formulated Employee Stock Option Scheme - 2005 (ESOS 2005) and Employee Stock Option Scheme -2010 (ESOS 2010) which are administered through the HDFC Standard Life Employees Stock Option Trust ("the Trust"). The Schemes provide that eligible employees are granted options that vest in a graded manner, to acquire equity shares of the Company. The options are accounted for on an intrinsic value basis and accordingly the intrinsic value of options (if any) at the grant date is amortised over the vesting period. 17. Operating Lease Leases where the lessor effectively retains substantially all the risk and the benefits of ownership over the leased term are classified as operating leases. Operating lease rentals are recognised as an expense, on a straight line basis, over the non cancellable lease period. 18. Taxation Direct Taxes Provision for income tax is made in accordance with the Income Tax Act, 1961. Provision for wealth tax is made at the appropriate rates, as per the applicable provisions of Wealth Tax Act, 1957. Indirect Taxes The company claims credit of service tax for input services, which is set off against tax on output services. As a matter of prudence, unutilised credits are deferred for recognition until such time that there is reasonable certainty of utilisation. 19. Funds for Future Appropriation The balance in the funds for future appropriations account rebrsents funds, the allocation of which, either to participating Policyholders or to Shareholders, has not been determined at the Balance Sheet date. Transfers to and from the fund reflect the excess or deficit of income over expenses and appropriations in each accounting period arising in the Company's Policyholders' fund. The fund for future appropriations held in the unit-linked funds, rebrsents surplus that has arisen from lapsed policies unlikely to be revived. This surplus is required to be held within the Policyholders' fund until after the point at which the Policyholders' can no longer revive their policy. 20. Earnings Per Share Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity Shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity Shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. 21. Appropriation / Expropriation In accordance with the Unit Linked guidelines issued by IRDA effective from 1st July 2006, the Company follows the Appropriation / Expropriation method for calculating the Net Asset Value ('NAV'). This method provides for adjusting the NAV on account of the 'Dealing Costs'. The accounting for dealing costs is disclosed in the Revenue Account as an adjustment with corresponding changes to the Change in valuation of policy liability account. Corresponding adjustments are also made in the assets held to cover linked liabilities and the provisions for linked liabilities in the Balance Sheet. NOTES OF ACCOUNTS 1. Taxation The Company carries on life insurance business and therefore the provisions of section 44 read with the rules contained in the First Schedule of the Income tax Act, 1961 are applicable for computation of profits and gains from business. The Company has not made provision for taxation for the year under consideration, since it does not have any net taxable income. According to Accounting Standard 22 on 'Accounting for Taxes on Income" carry forward of losses under tax laws should be recognized as a deferred tax asset only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which a deferred tax asset can be realized. As life insurance business has a long gestation period and in view of the resultant uncertainty, the Company has concluded that it would not be prudent to recognize deferred tax asset. 2. Actuarial Assumptions Actuarial liabilities are calculated in accordance with accepted actuarial practice, requirements of Insurance Act, 1938, regulations notified by IRDA and guidance notes issued by the Institute of Actuaries of India with the concurrence of the IRDA. The gross brmium method was used to value the non-linked liabilities in respect of the individual policies in force as at 31st March 2011. The liabilities were determined based on assumptions as to the future experience of the policies. The principal assumptions are related to interest, expenses, mortality and in the case of participating policies, bonuses. The assumptions made were based on prudent estimates of the future experience, and hence include margins for adverse deviations. The interest rates used for the valuation vary according to the type and term of the product, and were in the range of 4.40 to 5.20 per cent (Previous Year: 4.40 to 5.20 per cent). The mortality rates used for assurance benefits were based on the published Indian Assured Lives Mortality (1994-1996) Table. In the case of annuity benefits, a mortality assumption of 50% (Previous Year: 50%) of the LIC Annuitants (1996-98) Table was used. For the two new group non linked savings product (Group Traditional and Group Conventional) launched during the year, the valuation approach is to reserve based on account balance, which is the brmiums received plus the bonuses credited for the Group Conventional product and the brmiums received plus the interest credited for the Group Traditional plan. The Unit Reserves in respect of linked business have been determined on the basis of net asset values of the units allocated to the Policyholders as at 31st March 2011. The liability in respect of brmiums for which units were yet to be allocated, including brmiums due but not received (net of any provision for brmium reversals), as at 31st March 2011 is included in the non-unit liabilities. For the Unit linked youngstar policies and the participating children's double Benefit plan, the claim payment includes the funding of the future brmiums into the policies after the claim event. The liability for these future brmiums is the discounted value of the brmiums and the expenses involved. The assumptions used are the interest rate (4.4% for the Unit linked and 5.2% for the participating product) and the expenses which are the current best estimate expenses with a 20% loading and inflated at 7.5% per annum. 3. Encumbrances There were no encumbrances on the assets of the Company as at the Balance Sheet date (Previous Year Rs. Nil). 4. Commitments made and outstanding for Loans, Investments and Fixed Assets The estimated amount of commitments made and not provided for (net of advances) as at 31st March 2011 is Rs. 259,368 thousand (Previous Year Rs. 15,139 thousand) on account of investments and fixed assets. 5. Premium Income All business is written in India. 6. Re-insurance arrangements The Company has entered into re-insurance treaties with Swiss Re Insurance Company, Munich Re Insurance Company, RGA International Re Insurance Company Ltd. and Gen Re Life / Health Asia-Pacific in respect of the Company's individual and group assurance business. The Company has in principle re-insurance agreements with Swiss Re Insurance Company, Munich Re Insurance Company, RGA International Re Insurance Company Ltd and Gen Re Life / Health Asia-Pacific. 2. Trust Managed Provident Fund Scheme: a) General description of defined plans: The Company managed Provident Fund Scheme for its employees through a Provident Fund Trust, in accordance with the provisions of Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The scheme envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee, together with interest, are payable at the time of retirement, death while in employment or on termination of employment. The benefit under this plan vests immediately on rendering of service. b) The rules of the Company Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared for Employees' Provident Fund by the Government under para 60 of the Employees' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. c) During the year, the Company has decided to transfer the corpus of the Provident Fund Trust to the Regional Provident Fund Commissioner (RPFC) and that effective November 2010, the Provident Fund contribution of the employees of the Company be deposited with the RPFC. Accordingly, Provident Fund contributions have been deposited with the RPFC w.e.f. November 2010. The process of transfer of Provident Fund corpus is in progress. The liability of the Company in respect of defined benefit obligation towards guaranteed return on Provident Fund investments as on 31st March 2011 is Rs. Nil. The Company has made a provision/(write back) of Rs. Nil (Previous year Rs. (15,016) thousand) in the Accounts for the year towards difference in the opening and the closing balance of the Defined Benefit Obligation towards guaranteed return on Provident Fund Investments as per actuarial valuation. 3. Basis used to determine the overall expected return: Expected rate of return on investments of the Provident Fund Trust and of the Gratuity Scheme is determined based on the assessment made by the Company at the beginning of the year on the return expected on its existing portfolio, along with the return on estimated incremental investments to be made during the year. Yield on the portfolio is calculated based on suitable mark-up over benchmark Government Securities of similar maturities. 4. Claims As at 31st March 2011, there were 14 claims amounting to Rs. 5,220 thousand (Previous Year: 23 claims amounting to Rs. 6,280 thousand) settled and remaining unpaid for a period of more than six months. These claims remain unpaid awaiting receipt of duly executed discharge documents from the claimants. All claims are to be paid to claimants in India. 5. Value of Contracts Outstanding The value of contracts outstanding as at 31st March 2011 in relation to the purchase of investments where deliveries are pending is Rs. 514,644 thousand (Previous Year Rs. 1,936,151 thousand). The value of contract outstanding as at 31st March 2011, in relation to the sales of investments where receipts are pending is Rs. 2,199,645 thousand (Previous Year Rs. 619,130 thousand). 6. Basis of Revaluation of Investment Property The brmises owned by the Company (Gross value Rs. 220,831 thousand; book value Rs. 204,648 thousand) used as an office in the past has been reclassified during the year 2005-06 as 'Investment properties - real estate'. During the year, the Company decided to use a portion of the property classified as investment property for its own business purpose. Consequently, value of the property so used for own business Rs. 364,074 thousand has been reclassified from investment property to fixed assets. As required by IRDA regulation, the investment property has been revalued by an expert during the year. The gain of Rs. 20,255 thousand on revaluation arising due to a change in the carrying amount of the investment property has been credited to the revaluation reserve. 7. Service Tax Show Cause cum Demand Notice The Company has received show cause cum demand notices from the Office of the Commissioner, Service Tax, Mumbai on various grounds. The Company has filed appeals to the appellate authorities on the said show cause notices. An amount of Rs. 651,336 thousand (Previous Year Rs. 632,922 thousand) has been disclosed under contingent liabilities. The Company has been advised by an expert that our grounds of appeal are well supported in law. As a result, the Company is confident to defend the appeal against the demand and does not expect the demand to crystalise into a liability. 8. Income Tax Assessment The Company has so far received income tax assessment orders upto assessment year 2008-09, where in the assessing officer has made certain disallowances as well as certain additions to income. The Company has consulted experts and has filed appeals against the assessment orders. An amount of Rs. 5,321,797 thousand (Previous Year Rs. 2,357,811 thousand), on account of demand raised by the Assessing Officer, has been disclosed under contingent liabilities. Out of the said demand, an amount of Rs. 820,000 thousand (Previous Year Rs. 420,000 thousand) has been paid, upon which, the Commissioner of Income Tax has agreed to keep the balance demand in abeyance till the appeal is disposed of by the Commissioner of Income Tax (Appeals). The Company has been advised by experts that our grounds of appeal are well supported in law. As a result, the Company is confident to defend the appeal against the demand and does not expect the demand to crystalise into a liability. The Company has received TDS orders upto assessment year 2010-11, wherein the TDS officer has issued the demand notices of Rs. 1,027,877 thousand (Previous Year Rs. NIL).The Company is in the process of filing appeal before the Commissioner of Income tax - Appeals. The Company has disclosed this amount as contingent liabilities. The Company is confident to defend the appeal against the demand and does not expect the demand to crystalise into a liability. 9. Earning Per Equity Share: Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity Shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity Shareholders and the weighted average number of equity shares outstanding during the year are adjusted for effects of all dilutive equity shares. 10. Employee Stock Option Scheme ("ESOS") HDFC Standard Life Employees Stock Option Trust administers the ESOS declared by the Company. During the year, the Company has announced Employee Stock Option Scheme-2010. All grants of ESOPs are made under the ESOS 2005 or ESOS 2010. The Trust had subscribed to the capital of the Company and the options are granted to the employees from these shares. The exercise price of ESOS 2005 is based on the holding cost of the shares in the books of the Trust and that of ESOS 2010 is based on the fair market value as determined by the Category I Merchant Banker registered with Securities and Exchange Board of India (SEBI). 11. Appropriation price adjustment included in Unit Linked assets held to cover Unit Linked liabilities are measured in accordance to the IRDA Circular no. 24/IRDA/ACTL/2009-10 dated 5th August 2009. Impact in current year includes Rs. Nil (Previous Year Rs.212,430 thousand) towards opening liability adjustment. As no cash flows are involved in respect of these transactions, these amounts have not been reflected in the Cash Flow Statement. 12. Other current liabilities in schedule 13 include Rs.l,890,924 thousand (Previous Year Rs.l,750,806 thousand) payable to Unit Linked Policyholders towards last day change in net unit liability which will be invested on the first investment day in the next financial year. As no cash flows were involved in the current period in respect of these transactions, these amounts have not been reflected in the Cash Flow Statements. 13. The Company had started accruing commission on brmium accrued and outstanding as at Balance Sheet date with effect from 2009-10 and same practice has been consistently followed in 2010-11 also. Consequently, the commission expense for the year is higher / (lower) by (Rs. 6,913) thousand (Previous Year: Rs. 34,866 thousand) and loss for the year is higher / (lower) by (Rs. 6,913) thousand (Previous Year: Rs. 34,866 thousand). This disclosure is made in the current financial year as required by IRDA vide letter Ref : IRDA/Life/HDFC STd/Inspn dated 31st March 211. 28. Shareholders' contribution of Rs. 2,005,656 thousand to the Policyholders" account for the current year is irreversible in nature and will not be recouped to the Shareholders, subject to approval by Shareholders at the Annual General Meeting. Shareholders' contribution of Rs. 3,559,448 thousand to the Policyholders" account for the brvious year has been approved by Shareholders at the Annual General Meeting held on 5th August 2010. 29. As per Accounting Standard 17 on 'Segment Reporting' read with the IRDA Financial Statements Regulations, the Company is required to report segment results separately for Participating, Non-Participating - Life, Non-Participating - Group Pension, Annuity, Pension, Health businesses, Unit Linked Life (Individual and Group), and Unit Linked Pension (Individual and Group) businesses. The same is disclosed at Annexure A. C. Additional Disclosures 1. Investments made under statutory requirements As at 31st March 211, the Company had assets amounting to Rs.102,631 thousand (Previous Year Rs. 102,631 thousand) deposited with the Reserve Bank of India in order to comply with the level of deposit required by Section 7 of the Insurance Act, 1938.The assets are made up of Central Government Securities. 2. Performing and non-performing investments The Company did not hold any non-performing investments during the year. 3. Deposits made under local laws The Company has no deposits made under local laws or otherwise encumbered in or outside India as of 31st March 211, except investments to be held under Section 7 of the Insurance Act, 1938 as disclosed above under C l (Previous Year Rs. Nil). 4. Allocation of investments and investment income The underlying investments held on behalf of the Shareholders and the Policyholders are included in Schedules 8, 8A and 8B. The investment income arising from the investments held on behalf of Shareholders has been taken to the Profit and Loss account and those held on behalf of Policyholders to the Revenue Account. 5. Impairment of Assets There are no impaired assets as on the Balance Sheet date. |