ICICI Prudential Life Insurance Company Ltd.
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ISIN No INE726G01019 52Wk High (Rs.) 462 BV (Rs.) 47.78 FV (Rs.) 10.00
Bookclosure 02/11/2018 52Wk Low (Rs.) 301 EPS (Rs.) 11.28 P/E (X) 27.92
Mkt Cap. (Rs. Cr.) 45,205.67 P/BV (X) 6.59 Div Yield (%) 2.48 Mkt Lot 1
2017-03

1. Actuarial method and assumptions

The actuarial liability in respect of both participating and non-participating policies is calculated using the gross premium method, using assumptions for interest, mortality, morbidity, expense and inflation and, in the case of participating policies, future bonuses together with allowance for taxation and allocation of profits to shareholders. These assumptions are determined as prudent estimates at the date of valuation with allowances for adverse deviations.

The liability for the unexpired portion of the risk for the non-unit liabilities of linked business and attached riders is the greater of liability calculated using discounted cash flows and unearned premium reserves.

An unexpired risk reserve and a reserve in respect of claims incurred but not reported is held for one year renewable group term insurance.

The unit liability in respect of linked business is the value of the units standing to the credit of policyholders, using the Net Asset Value ('NAV') prevailing at the valuation date.

A brief of the assumptions used in actuarial valuation is as below:

a) The interest rates used for valuing the liabilities are in the range of 3.49% to 6.20% per annum. The interest rates used at March 31, 2016 were in the range of 4.92% to 5.53% per annum.

b) Mortality rates used are based on the published "Indian Assured Lives Mortality (2006 - 2008) Ult." mortality table for assurances and LIC (a) 96-98 table for annuities adjusted to reflect expected experience. Morbidity rates used are based on CIBT 93 table, adjusted for expected experience, or on risk rates supplied by reinsurers.

c) Expenses are provided for at least at the current levels in respect of renewal expenses, with no allowance for any future improvement but with an allowance for any expected worsening.

d) Per policy renewal expenses are assumed to inflate at 4.55% per annum. The expense inflation assumption used at March 31, 2016 was 5.18%.

e) No allowance is made for expected lapses in the future.

f) The bonus rates for participating business to be declared in the future is consistent with the valuation assumptions.

g) The tax rate applicable for valuation at March 31, 2017 is 14.42% p.a.

Certain explicit additional provisions are made, which include the following:

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.

b) Reserves for guarantees available to individual and group insurance policies.

c) Reserves for cost of non-negative claw back additions.

d) Reserves for free look option given to policyholders calculated using a free look cancellation rate of 2.2%. The free look cancellation assumption used at March 31,2016 was 2.80%.

e) Reserves for lapsed policies eligible for revivals.

2. Funds for Future Appropriations ('FFA')

The balance of unit-linked FFA at March 31, 2017 is Rs, 8,171 thousand (March 31, 2016: Rs, 10,768 thousand), non-unit/ non-participating FFA is Rs, nil (March 31, 2016: Rs, 1,858,866 thousand) and participating FFA is Rs, 6,033,687 thousand (March 31, 2016: Rs, 4,749,499 thousand) is not available for distribution to Shareholders. Such amount is classified under Funds for Future appropriations, in the Balance Sheet.

3. Claims settled and remaining unpaid

Claims settled and remaining unpaid for a period of more than six months at March 31,2017 isRs, 15,358 thousand (March 31,2016:Rs, 14,135 thousand).

4. Reconciliation of unclaimed amounts of policyholders

Pursuant to IRDAI circular No. IRDA/F&A/CIR/CLD/114/05/2015 dated May 28, 2015 and IRDA/F&A/CIR/CPM/134/07/2015 dated July 24, 2015 on "Handling of unclaimed amounts pertaining to policyholders", the Company has created a single segregated fund to manage all the unclaimed monies. The amount in such unclaimed fund has been invested in money market instruments and /or fixed deposit of scheduled banks with effect from April 01, 2016.

The amount in the unclaimed fund has been disclosed in schedule 12 as "Assets held for unclaimed amount of policyholders". Investment income accruing to such unclaimed fund has been credited to the fund and disclosed as other income under Linked life segment in the Revenue Account. Such investment income net of fund management charges ('FMC') is paid/ accrued as "interest on unclaimed amounts" in schedule 4 "Benefits paid".

Reconciliation of unclaimed amounts of policyholders:

In accordance with circular IRDA/F&I/CIR/CLD/114/05/2015 issued by the IRDAI on May 28, 2015, the details of unclaimed amounts and investment income at March 31, 2017 is tabulated as below:

The cheques issued but not encashed by policyholder/insured category include Rs, 5,506,357 thousand pertaining to cheques which are within the validity period but not yet encashed by the policyholders at March 31, 2017 (March 31, 2016: Rs, 3,066,892 thousand). This amount forms part of bank reconciliation and consequently not considered in unclaimed amount of policyholders as disclosed under Schedule 13 - Current liabilities.

The current tax provision is determined in accordance with the provisions of the Income Tax Act, 1961. The provision for current tax for the year ended March 31, 2017 is Rs, 1,815,915 thousand (year ended March 31, 2016: Rs, 1,913,926).

The provision for current tax includes an amount of Rs, 788,117 thousand for the year ended March 31, 2017 (year ended March 31, 2016: Rs, 702,871 thousand) which has been charged on the total surplus of the participating line of business in Revenue Account, in line with the Company’s accounting policy. Further, tax expense amounting to Rs, 1,027,798 thousand for the year ended March 31, 2017 (year ended March 31, 2016: T 1,211,055 thousand) pertaining to other than participating line of business has been charged to Profit & loss account.

Deferred tax charge for the year ended March 2017 is Rs, 233 thousand (year ended March 31, 2016: Rs, 636 thousand).

5. Operating lease commitments

The Company takes premises, motor vehicles, office equipment’s, computers, servers and modular furniture on operating lease. Certain lease arrangements provide for cancellation by either party and also contain a clause for renewal of the lease agreement. Lease payments on cancellable and non-cancellable operating lease arrangements are charged to the Revenue account and the Profit and Loss account over the lease term on a straight line basis. The total operating lease rentals charged for the year ended March 31, 2017 is Rs, 539,758 thousand (year ended March 31, 2016: Rs, 685,977 thousand).

6. Assets given on operating lease

The Company has entered into an agreement in the nature of leave and license for leasing out the investment property. This is in the nature of operating lease and lease arrangement contains provisions for renewal. There are no restrictions imposed by lease arrangement and the rent is not determined based on any contingency. The total lease payments received in respect of such lease recognized in Revenue account and Profit and Loss account for the year ended March 31, 2017 is Rs, 66,797 thousand (year ended March 31, 2016: Rs, 52,909 thousand).

7 Details of related parties and transactions with related parties

Related parties and nature of relationship:

Nature of relationship Name of the related party Holding company ICICI Bank Limited

Substantial interest Prudential Corporation Holdings Limited

Subsidiary ICICI Prudential Pension Funds Management Company Limited

Fellow subsidiaries ICICI Securities Limited

and entities jointly |c|c|

Securities Inc.

controlled by holding

company Securities Holding Inc.

ICICI Venture Funds Management Company Limited

ICICI Home Finance Company Limited

ICICI Trusteeship Services Limited

ICICI Securities Primary Dealership Limited

ICICI Investment Management Company Limited

ICICI International Limited

ICICI BankUKPLC.

ICICI Bank Canada

ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited

Consolidated under AS- ICICI Strategic Investments Fund 21 by holding company

Significant influence 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 Scheme ICICI Prudential Life insurance Advisors Benefit trust

Key management Sandeep Bakhshi, Managing Director and CEO

personnel as per AS-18 Puneet Nan(Ja_ Executive Director disclosure

Sandeep Batra, Executive Director Judhajit Das, Chief - Human Resources Asha Murali, Appointed Actuary

8. Fund Balance Sheet at March 31, 2017

Fund Balance Sheet for each segregated linked fund is annexed herewith - Refer Annexure 1

9. Fund Revenue Account for the year ended March 31, 2017

Fund Revenue Account for each segregated linked fund is annexed herewith - Refer Annexure 2

10. Annexure to the Revenue account and Additional ULIP Disclosures

Additional disclosure in respect of Unit linked portfolio as prescribed by IRDAI vide circulars 054/IRDA/F&A/FEB-07 dated February 20, 2007 and IRDA/ F&A/001 /APR-07 dated April 16, 2007 - Refer Annexure 3.

11. Employee benefits

Provision for staff benefits as per AS 15 (Revised):

(a) Defined contribution plans

The amount recognized as an expense during the year ended March 31, 2017 is Rs, 51,520 thousand (year ended March 31, 2016: Rs, 43,188 thousand).

*Salary escalation rate considered in valuation take into account impact of inflation, seniority, promotion and other factors impacting future salary cost.

Estimated rate of return on plan assets is based on the expected average long-term rate of return on investments of the Fund during the estimated term of the obligations.

Provident fund

Provident fund benefits are aimed at providing security to staff members and their dependents on retirement, disability or death. Both employee and the company contribute an equal percentage of the basic salary, a part of which is towards Government administered pension fund and balance portion is contributed to the fund administered by trustees. The provident fund is managed by ICICI Prudential Life Insurance Company Employees’ Provident Fund Trust.

The minimum rate at which the annual interest is payable by the trust to members is prescribed by the Government. The Company has an obligation to make good the shortfall, if any, between the Government prescribed rate and actual return earned by the provident fund

The Company Employees Stock Option Scheme (2005) ("ESOS 2005") has six tranches namely Founder, 2004-05, 2005-06, 2006-07, Founder II and 2007-OS. ESOS 2005 permits the grant of share options up to 3% of the issued capital of Company. The Board of Directors have approved the amendment of ESOS 2005 (ESOS 2005 (Revised)). As per the ESOS 2005 (Revised), the aggregate number of Shares issued or issuable since March 31, 2016 pursuant to the exercise of any Options granted to the Eligible Employees issued pursuant to the Scheme or any other stock option scheme of the Company, shall not exceed a figure equal to 2.64% of the number of shares issued as on March 31, 2016. The maximum number of options that can be granted to any eligible employee is restricted to 0.1% of the issued capital. The Exercise Price shall be determined by the Board Nomination & Remuneration Committee in concurrence with the Board of Directors of the Company on the date the Options are granted and shall be reflected in the award confirmation. These changes (ESOS 2005 (Revised)) is subject to approval of the shareholders of the Company and no fresh grant will be made under the ESOS 2005 until such approval by shareholders

The Company follows intrinsic value method and hence there was no charge in the Revenue Account and Profit and Loss account on account of modification of the Scheme.

Exercise price of all the options outstanding for all years/quarter for Founder (2003-04) scheme, 2004-2005 scheme, 2005-06 scheme, 2006-07 scheme, Founder II and 2007-08 scheme is Rs, 30, Rs, 42, Rs, 70, Rs, 130, Rs, 130 and Rs, 400 respectively.

Nil options are vested during the year ended March 31, 2017 and Rs, 327,337,140 was realized by exercise of options during the year ended March 31,

2017. During the year ended March 31, 2017 the Company has recognized a compensation cost ofRs, nil (year ended March 31, 2016: Rs, nil) as the intrinsic value of the options. Had the company followed fair value method for valuing its options, no additional cost would have been charged in Revenue and Profit and Loss account and hence no change in Profit after tax, Basic EPS and Diluted EPS for year ended March 31, 2017 and year ended March 31, 2016. The weighted average price of options exercised during the year ended March 31, 2017 is Rs, 108.3 (year ended March 31, 2016: Rs, 108.4).

ICICI Bank Limited ("FHolding company") has granted options to certain employees of the Company. Holding company follows an intrinsic value method and has recognized a cost ofRs, nil for the year ended March 31, 2017, for the options granted to employees of the Company (year ended March 31, 2016: Rs, nil).

Transactions in foreign currencies are recorded at exchange rate prevailing on the date of transaction. The exchange difference between the rate prevailing on the date of transaction and on the date of settlement is recognized as income or expense, as the case may be. The net foreign exchange loss debited to Revenue account for the year ended March 31, 2017 is Rs, 3,221 thousand (year ended March 31, 2016: loss Rs, 1,445 thousand)

12. Managerial remuneration

IRDAI has issued guidelines on August 05, 2016 on remuneration of Non-Executive Directors and Managing Director ('MD') /Chief Executive Officer (‘CEO’) /Whole Time Directors (‘WTD’), which have prescribed certain qualitative and quantitative disclosures. The disclosures for year ended March 31, 2017 are given below:

Remuneration to MD/CEO/WD:

Qualitative disclosures:

A) Information relating to the bodies that oversee remuneration. Name, composition and mandate of the main body overseeing remuneration:

The Board Nomination and Remuneration Committee (BNRC/Committee) is the body which oversees the remuneration aspects. The functions of the Committee include recommending appointments of Directors to the Board, identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and recommend to the Board their appointment and removal, formulate a criteria for the evaluation of the performance of the whole time/independent Directors and the Board and to extend or continue the term of appointment of independent Director on the basis of the report of performance evaluation of independent Directors, recommending to the Board a policy relating to the remuneration for the Directors, Key Managerial Personnel and other employees, recommending to the Board the remuneration (including performance bonus and perquisites) to whole time Directors (WTDs), commission and fee payable to non-executive Directors subject to applicable regulations, approving the policy for and quantum of bonus payable to the members of the staff including senior management and key managerial personnel, formulating the criteria for determining qualifications, positive attributes and independence of a Director, framing policy on Board diversity, framing guidelines for the Employees Stock Option Scheme (ESOS) and decide on the grant of the Company’s stock options to employees and WTDs of the Company.

External consultants whose advice has been sought, the body by which they were commissioned and in what areas of the remuneration process:

The Company did not take advice from an external consultant on any area of remuneration during the year ended March 31, 2017.

Scope of the Company's remuneration policy (e.g. by regions, business lines), including the extent to which it is applicable to foreign subsidiaries and branches:

The Compensation Policy of the Company as last amended and approved by the BNRC and the Board at its Meeting held on October 21,2016 covers all employees of the Company.

Type of employees covered and number of such employees:

All employees of the Company are governed by the compensation policy. The total number of permanent employees governed by the compensation policy of the Company at March 31, 2017 was 12,397.

B) Information relating to the design and structure of remuneration process.

Key features and objectives of remuneration policy:

The Company has under the guidance of the Board and the BNRC, followed compensation practices intended to drive meritocracy within the framework of prudent risk management. This approach has been incorporated in the Compensation Policy, the key elements of which are given below:

Effective governance of compensation:

The BNRC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for the Organization and the organizational performance norms for bonus based on the financial and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The BNRC assesses organizational performance as well as the individual performance of WTDs and equivalent positions. Based on its assessment, it makes recommendations to the Board regarding compensation for WTDs and equivalent positions and bonus for employees, including senior management and key management personnel.

Alignment of compensation philosophy with prudent risk taking:

The Company seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels. Compensation is sought to be aligned to both financial and non-financial indicators of performance including aspects like risk management and customer service. In addition, the Company has an employee stock option scheme aimed at aligning compensation to long term performance through stock option grants that vest over a period of time.

Whether the Remuneration Committee reviewed the firm's remuneration policy during the past year, and if so, an overview of any changes that were made:

Pursuant to IRDAI guidelines on Remuneration of Non-executive Directors and Managing Director/Chief Executive Officer/Whole-time Directors of Insurers (IRDAI Guidelines) issued vide reference no. IRDA/F&A/GDL/ LSTD/155/08/2016 dated August 5, 2016 and in line with ICICI Group norms the Compensation & Benefits Policy was reviewed and amended by the BNRC and the Board at its meeting held on October 25, 2016. The Compensation & Benefits Policy was further reviewed and amended by the BNRC on October 21, 2016.

C) Description of the ways in which current and future risks are taken into account in the remuneration processes.

To ensure effective alignment of compensation with prudent risk taking, the Company shall take into account adherence to the risk framework to ensure remuneration is adjusted for all types of risks in conjunction with other pre-defined performance objectives. Remuneration payout shall be sensitive to the time horizon of the risks involved and symmetric to risk outcomes.

- Compensation is aligned to both financial and non-financial indicators of performance including controls like risk management, process perspective, customer perspective and others.

- Prudent behavior is assessed through a Good Order Index for middle and senior management level employees.

- These business objectives are balanced in nature, and comprise a holistic mix of financial, customer, people, and process/quality and compliance objectives.

- Acts of gross negligence and integrity breach shall be covered under the purview of the compensation policy. The deferred part of the variable pay (performance bonus) will be subject to mauls, under which, the Company will prevent vesting of all or part of the variable pay in the event of an enquiry determining gross negligence or integrity breach.

D) Description of the ways in which the Company seeks to link performance during a performance measurement period with levels of remuneration.

The Company follows a philosophy of meritocracy, which is the relative differentiation of employees based on performance delivered. The design of the variable pay is linked to the individual employee’s performance rating which is arrived at basis assessment of performance delivered against a set of pre-defined performance objectives. These objectives are balanced in nature, and comprise a holistic mix of financial, customer, people, and process/quality and compliance objectives. To ensure effective alignment of compensation with prudent risk parameters, the Company will take into account various risk parameters along with other pre-defined performance objectives of the Company.

Prudent behavior is assessed through a Good Order Index for middle and senior management level employees.

1. Allowances include NPS, Superannuation, Leave encashment and Medical as per policy. For Sandeep Bakhshi, allowances also includes Interest subsidy.

2. The stock options mentioned in the above table were granted by ICICI Bank Ltd. in FY 2016 and FY2017 respectively. The table excludes special grant of stock options granted in FY2016 approved by IRDAI on June 3, 2016 aggregating to 1,000,000 for Sandeep Bakhshi, 4,35,000 for Puneet Nanda and 3,67,500 for Sandeep Batra. (as they are on conditional vesting)

Perquisites (evaluated as per Income-Tax rules wherever applicable and otherwise at actual cost to the Company) such as the benefit of the gas, electricity, furnishing, club fees, group insurance, use of car and telephone at residence or reimbursement of expenses in lieu thereof, medical reimbursement, leave and leave travel concession, education benefits, provident fund, superannuation fund and gratuity, were provided in accordance with the scheme(s) and rule(s) applicable from time to time.

1 Cash Amounts mentioned in above table are outstanding deferred bonus and LTRS of previous year/s and is paid post March 31, 2016 & March 31,2017 respectively. March 31, 2017 figure does not include the bonus payable for FY2017 which will be paid in April 30, 2017.

2 Options mentioned in above table are outstanding vesting as on March 31,2016 & March 31,2017. This excludes special grant of stock options in FY2016 approved by IRDAI on June 3, 2016 aggregating to 1,000,000 for Sandeep Bakhshi, 4,35,000 for Puneet Nanda and 3,67,500 for Sandeep Batra

Payment of compensation in the form of profit related commission to the non-executive directors.

The Board at its Meeting held in October 2016, subject to the approval of shareholders and such other regulatory approvals as may be applicable and subject to the availability of net profits at the end of each financial year, approved the payment of profit related commission of Rs, 7.5 lakhs to be paid, to each non-executive Director (excluding nominee directors), for a year or part thereof based on their term in the Company, beginning financial year ended March 31, 2017. The Company will seek the approval for payment, from its shareholders at the forthcoming Annual General Meeting.

13. Commitments

Commitments made and outstanding (net of advances) for Company’s investment in Real estate (Investment property) is Rs, nil (March 31, 2016 Rs, 487,113 thousand).

Estimated amount of contracts remaining to be executed on fixed assets to the extent not provided for (net of advance) is Rs, 112,616 thousand (March 31, 2016:Rs, 91,398 thousand)

There are no loan commitments made by the Company (March 31, 2016 Rs, Nil).

14. Investments

a. The investments are made from the respective funds of the Policyholders’ or Shareholders’ and investment income thereon has been accounted accordingly.

b. All investments are performing investments.

15. Restructured assets

There are no assets including loans subject to re-structuring (March 31, 2016: ^ nil)

16. Valuation of Investment property

In accordance with the IRDA Regulations, 2002 (Preparation of Financial Statements and Auditors’ Report of Insurance Companies), the Company’s investment property has been revalued. The Company has revalued all its investment properties held for more than one year and market value for such properties is based on valuation performed by an independent valuer at March 31,2017. The opinion on market value by the independent valuer, is prepared in accordance with the "The RICS Valuation Standards" published by the Royal Institution of Chartered Surveyors ("RICS"), subject to variation to meet local established law, custom, practice and market conditions. The methods used in valuation of property includes "Direct comparable approach". The real estate investment property is accordingly valued at Rs, 6,338,958 thousand at March 31, 2017 (March 31, 2016: Rs, 2,553,528 thousand). The historical cost of the property is Rs, 5,617,599 thousand (March 31, 2016: Rs, 1,966,588 thousand).

17. Impairment of investment assets

In accordance with the impairment policy of the Company, diminution in the value of investments has been recognized under the head "Provision for diminution in the value of investments (Net)" in the Revenue account and the Profit and Loss account. The total impairment loss recognized for the year ended March 31, 2017 is Rs, 65,125 thousand (year ended March 31, 2016: T 170,326 thousand).

18. Encumbrances of assets

The assets of the Company are free from all encumbrances except to the extent assets or monies are required to be deposited as margin contributions for investment trade obligations of the Company or as mandated by the court, as detailed below:

a. Assets deposited with National Securities Clearing Corporation Limited (NSCCL) and Indian Clearing Corporation Limited (ICCL)

Fixed deposit of Rs, 1,000,000 thousand (March 31, 2016: Rs, 1,050,200 thousand) and Rs, 100,000 thousand (March 31,2016:Rs, 99,000 thousand) has been deposited with NSCCL and ICCL respectively towards margin requirement for equity trade settlement.

Terms of pledge: Physical custody of the fixed deposits are with respective clearing houses, however the income accrued on these deposits shall be passed on to the Company on the maturity of the deposits. These deposits can be invoked by the clearing houses in case of any default by the Company in settlement of equity transactions.

Terms of pledge: Physical custody of the securities is maintained with the CCIL, however interest accrued on these securities is received by the Company. The Company is not entitled to any interest income on the money deposited with the CCIL towards margin requirements. These deposits, both securities and cash, can be invoked by CCIL in case of any default by the Company in settlement of trades in Securities and CBLO segment.

19. Assets to be deposited under local laws

There are no assets required to be deposited by the Company under any local laws or otherwise encumbered in or outside India at March 31, 2017 (March 31, 2016: Rs, Nil) except the assets disclosed in the note 3.26.

20. Securities Lending and Borrowing Scheme (SLB)

Equity shares transferred under SLB continue to be recognized on the Balance Sheet as the Company retains all the associated risks and rewards of these securities.

The value of equity shares lent by the Company under SLB and outstanding at March 31, 2017 is Rs, Nil (March 31, 2016: Rs, 1,113,943 thousands).

21. Reverse Repo transactions in Government securities/Corporate Debt Securities

Disclosures pursuant to IRDAI notification ref IRDA/F&I/CIR/lNV/250/12/2012 dated December 4, 2012:

There are no investment contracts where sales have been made and payments are overdue at the Balance Sheet date.

22. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

There are no payments made to or dues outstanding to Micro, Small and Medium Enterprises beyond the timelines prescribed by the MSMED Act (March 31, 2016: Rs, Nil).

23. Extra allocation

Total extra allocation made with respect to group products (Group Unit Linked Superannuation and Group Unit Linked Employee Benefit Plan) for the year ended March 31, 2017 is Rs, 775 thousand (for year ended March 31, 2016:Rs, 35,397 thousand).

The amount of recovery towards extra allocation for the year ended March 31, 2017 is Rs, 7,755 thousand (year ended March 31, 2016: Rs, 550 thousand).

24. Dividend

Interim dividend appropriation for the year ended March 31, 2017 amounted to Rs, 6,645,630 thousand (year ended March 31, 2016: Rs, 10,858,715 thousand) including dividend distribution tax ofRs, 1,124,058 thousand (year ended March 31, 2016: Rs, 1,836,674 thousand).

The Board of directors have also proposed a final dividend of Rs, 5,023,715 thousand (Previous year Rs, 3,007,883 thousand). Dividend distribution tax on the same amounts to Rs, 1,022,710 thousand (Previous year Rs, 612,334 thousand).

The Central Government in consultation with National Advisory Committee on Accounting Standards has amended Companies (Accounting Standards) Rules, 2006 ('principal rules’), vide notification issued by Ministry of Corporate Affairs dated March 30, 2016. The Companies (Accounting Standards) Rules, 2016 is effective March 30, 2016. According to the amended rules, the above mentioned proposed dividend is not recorded as a liability at March 31, 2017.

The final dividend amounting to Rs, 1,142 thousand (year ended March 31, 2016: Rs, 17 thousand) and dividend distribution tax of Rs, 233 thousand (year ended March 31, 2016: Rs, 3 thousand) pertains to dividend on 543,828 equity shares for year ended March 31, 2016 and allotted between date of Board Meeting i.e. April 26, 2016 and Record Date i.e. June 22, 2016. The dividend distribution tax for the year ended March 31, 2017 includes a reversal of Rs, Nil due to rounding off of provision for dividend distribution tax for the year ended March 31, 2016 (year ended March 31, 2016: Rs, 70 thousand)

Unclaimed dividend of Rs, 697 thousand at March 31, 2017 (at March 31, 2016: Rs, Nil) represents dividends paid, but not claimed by shareholders, and are represented by a bank balance of an equivalent amount.

* Includes Share application money pending allotment ** Includes provision for diminution in the value of investments

25. Pending litigations

The Company’s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2017. Refer note 3.1 for details on contingent liabilities. In respect of litigations, where the management assessment of a financial outflow is probable, the Company has made a provision ofRs, 169,015 thousand at March 31, 2017 (At March 31, 2016: Rs, 135,466 thousand).

26. Long term contracts

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts including derivative contracts has been made in the financial statements.

For insurance contracts, actuarial valuation of liabilities for policies in force is done by the Appointed Actuary of the Company. The assumptions used in valuation of liabilities are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority of India ("IRDAI") and the Institute of Actuaries of India in concurrence with the IRDAI.

27. Loans and advances to subsidiaries, associates and related entities

Pursuant to Securities and Exchange Board of India (Listing obligations and disclosure requirements) Regulations, 2015, disclosures pertaining to loans and advances given to subsidiaries, associates and related entities are given below:

There are no loans and advances given to subsidiaries, associates and firms/companies in which directors are interested expect for advances which are in the normal course of business but not in the nature of loans (year ended March 31, 2016: T nil)

There are no investments by the loanee in the shares of the Company.

28. Specified bank notes

Being an insurance company, Schedule III of the Companies Act, 2013 is not applicable and hence the disclosure requirements for the details of Specified Bank Notes (SBNs) as envisaged in Notification G.S.R. 308(E) dated March 30, 2017 issued by the Ministry of Corporate Affairs (MCA) is not provided.