Life Insurance Corporation of Indiaकी ऑडीटर रिपोर्ट

Mar 31, 2025

1. We have audited the accompanying standalone financial statements of Life Insurance Corporation of India ("the Corporation"),
which comprise of the standalone balance sheet as at March 31, 2025, the standalone revenue account (also called the
“Policyholders’ Account” or the “Technical Account”), standalone profit and loss account (also called the “Shareholders’
Account” or the “Non - Technical Account”) and the standalone receipts and payments account (also called as the “Cash
Flow Statement”) for the year ended March 31 2025, and a summary of significant accounting policies and other explanatory
information, in which are included 8 Zonal Offices, 113 Divisional Offices and 77 units of Pension & Group Schemes audited
by the zonal/divisional auditors appointed by the Corporation and the returns of 3 foreign branches (Fiji, Mauritius, United
Kingdom) audited by their respective local auditors and for 1 branch (GIFT City, India) audited by one of the Corporation
auditors.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements are prepared, in accordance with the Life Insurance Corporation Act 1956 ( the “LIC Act”), as amended,
the Insurance Act, 1938 (the “Insurance Act”), as amended, Insurance Regulatory and Development Act, 1999 (the “IRDA
Act”), (Actuarial Finance and Investment Functions of Insurers) Regulation, 2024, including orders/ directions/ circulars issued
by the Insurance Regulatory and Development Authority of India (“IRDAI”), including the accounting standards specified under
section 133 of the Companies Act, 2013, to the extent applicable and in the manner so required and give a true and fair view
in conformity with accounting principles generally accepted in India, as applicable to insurance companies:

i. in the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31,2025;

ii. in the case of the Revenue Account, of the net surplus for the year ended on that date;

iii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iv. in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA’s) issued
by the Institute of Chartered Accountants of India (“ICAI”). Our responsibilities under those standards are further described in
the auditors’ responsibilities for the audit of Financial Statements section of our report. We are independent of the Corporation
in accordance with the code of ethics issued by the ICAI together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the LIC Act, as amended, the Insurance Act, as amended; the IRDA Act;
Regulations and orders / circulars issued by IRDAI and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matters

4. We invite attention to the following notes to the standalone financial statements under Schedule 15A(C):

a) Note No. 20, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount
of '' 9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20
quarters commencing from Q3 of the FY 2023-24 amounting to '' 464.02 crore per quarter. Accordingly, an aggregate
amount of '' 1,856.08 crore has been charged to Revenue Account over four quarters during the year ended March
31, 2025.The balance amount of '' 6,496.25 crore shall be amortised over the subsequent quarters upto Q2 of the
FY 2028-29.

b) Note No. 21, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount of
'' 7,230.09 crore in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished
from Shareholders'' account in equal annual instalments not exceeding three, commencing from Q1 of the FY 2024¬
2025. Accordingly, an aggregate amount of '' 2,410.03 crore has been replenished from the Shareholders’ account over
four quarters during the year ended March 31,2025. The balance amount of '' 4,820.05 crore shall be replenished from
Shareholders’ account over the subsequent quarters upto Q4 of the FY 2026-27.

c) Note No. 22, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount of
'' 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders
account over a period not exceeding three years commencing from the FY 2024-2025. Accordingly, an aggregate
amount of '' 1,825.68 crore has been charged to Shareholders’ account over four quarters during the year ended, March
31, 2025. The balance amount of '' 3,651.42 crores shall be charged to Shareholders’ account over the subsequent
quarters upto Q4 of the FY 2026-27.

Key Audit Matters

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matter below to be the key audit matter to be communicated in our report.

Key audit matters	How our audit addressed the key audit matters
Classification and Valuation of Investments (31.03.2025:	We have carried out the following key audit procedures:
'' 53,04,249.98 crore)	•	Understood the Corporation’s process and procedures
(Refer Schedule 8, 8A, 8B, 9 and 11 of the financial statements.		and tested controls to ensure proper classification and
Refer schedule 15A(A)6 to the financial statements for		valuation/ impairment of investments.
accounting policy.)	•	Tested recording of investments on sample basis and
The Corporation’s investment portfolio is bifurcated into linked		verified classification of investments and compliance with
and non-linked. The investment portfolio forms significant		Investment Regulations and policies approved by Board
portion of the total assets of the Corporation.		of Directors of the Corporation.
As prescribed by Insurance Regulatory and Development	•	Assessed valuation of securities to examine whether the
Authority of India (the “IRDAI”), all investments should be in		same is in accordance with the Investment Regulations
accordance with the Insurance Regulatory and Development		and Corporation’s accounting policies.
Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (the “Investment Regulations”) and policies approved by Board of Directors of the Corporation.	•	Tested impairment/provision of securities (including reversal), which have been observed and are in accordance with the Investment Regulations and
Also, all investments should be valued as prescribed in		Corporation’s impairment policies.
the Investment Regulations which prescribe the valuation methodology to be adopted for each class of investments.	•	In respect of unlisted and other than actively traded investments, we evaluated the Corporation’s valuation
The unlisted or other than actively traded investments are		methodology and assumptions and corroborated these
measured at historical cost less provision for diminution/		with Investment Regulations and Corporation’s internal
impairment, which involves management judgement and		policies including those related to impairment.
estimate.	•	For any changes in ratings of the investee company,
Further, due to the reassessment of the investee company’s		we examined the Corporation’s assessment with the
rating, there could be a need for reclassification of investment		Investment Regulations and Corporation’s internal
and consequent impact on its valuation / impairment keeping in view the Investment Regulations and/ or Corporation’s internal policies.		policies for reclassification and valuation.

Key audit matters	How our audit addressed the key audit matters
Hence, the valuation of investments was considered to be one of the areas which required our significant attention and was one of the key audit matters due to the materiality of total value of investments to the financial statements.	• We have perused the available concurrent audit reports on investments. Based on the work carried out, we did not come across any significant matter which indicates that the investments were not properly classified or valued.
Appropriateness of the Timing of Revenue Recognition Refer Revenue Account of the standalone financial statements. During the year, the Corporation has recognised net premium income of '' 4,88,148.17crore. We have focused on this area because of the significant concentration of revenue during the last quarter of financial year (including cut-off at the Balance sheet date). Due to the nature of the industry, revenue is skewed towards the balance sheet date. Hence, there is possibility that policy sales of the next financial year are accounted in the current period.	Our procedures included the following: • Understood and evaluated the design and operating effectiveness of process and controls relating to recognition of revenue. • Testing of key controls for ensuring that the revenue has been accrued in the correct accounting period. • Tested on a sample basis the policies at the year end to confirm if related procedural compliances with regard to acceptability of the terms of policy were completed before the year end to ensure appropriate accounting of revenue. • Tested on a sample basis unallocated premium / proposal deposit/ premium deposit to ensure that there were no policies where risk commenced prior to balance sheet but revenue was not recognised. Based on the work carried out, we did not come across any significant matter which indicates that the revenue recognition is not accounted in the correct period.
Contingencies relating to certain matters pertaining to Direct & Indirect Tax The Corporation has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. The Corporation has disputes pending at various levels of tax authorities over the past several years. The management with the help of its expert, as needed, have made judgments relating to the likelihood of an obligation arising and whether there is a need to recognise a provision or disclose a contingent liability. We have considered Litigations and claims as Key Audit Matter because the estimates on which these amounts are based involve a significant degree of management judgment, including accounting estimates that involves high estimation uncertainty.	Our procedures included the following: • Understood Management’s internal instructions, process and control for determining and estimating the tax litigations, other litigations and claims and its appropriate accounting and/or disclosure; • Discussed pending matters with the Corporation’s legal counsel and in-house tax experts; • Reviewed the management’s underlying assumptions in estimating the tax provision, the possible outcome of the disputes, legal precedence and other rulings in evaluating management’s position on these uncertain tax positions. • Relied upon the management judgements, industry level deliberations and estimates for possible outflow and opinion of internal experts/ External Tax Advisors/ lawyers of the Corporation in relation to such disputed tax positions Based on the work performed, in view of the contingencies relating to certain matters pertaining to Direct & Indirect Tax, we determined the extent of provisioning and disclosure of contingent liabilities as at March 31,2025 to be reasonable.

Information Other than the Standalone Financial Statements and Auditors’ Report thereon

6. The Corporation’s Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements and our auditors’ report thereon. The annual report
is expected to be made available to us after the date of this auditors’ report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we will communicate the matter
to those charged with governance.

Responsibilities of Management and Those Charged with Governance for Standalone Financial Statements

7. The Corporation''s Board of Directors is responsible for the preparation and presentation of these Standalone Financial
Statements in terms of the requirements of the LIC Act, as amended, so that they give a true and fair view of the balance sheet,
the revenue account, the profit and loss account and the receipts and payments account of the Corporation, in accordance with
accounting principles generally accepted in India including the provisions of the LIC Act, as amended , the Insurance Act, as
amended read with the IRDA Act, the Regulations, order/ directions issued by the IRDAI in this regard and in accordance with
the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the
Companies Act, 2013 to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the LIC
Act, as amended, the Insurance Act, as amended; IRDA Act; Regulations and orders / circulars issued by the IRDA for
safeguarding of the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Corporation’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do
so.

The Corporation''s Board of Directors are also responsible for overseeing the Corporation’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Standalone Financial Statements.

8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:

i. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal controls.

ii. Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

iv. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors’ report to the related disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to Continue
as a going concern.

v. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

vi. Obtain sufficient appropriate audit evidence regarding the financial information of the departments/ units of Central office
to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and
performance of the audit of the financial statements of departments/ units of Central office included in the standalone
financial statements of which we are the independent auditors. For the zones/ divisions/ branches/ units included in the
standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for
the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit
opinion.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

13. The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation’s Appointed Actuary (the
"Appointed Actuary"). The actuarial valuation of these liabilities for life policies in force and for policies in respect of which
premium has been discontinued but liability exists as at March 31,2025 has been duly certified by the Appointed Actuary and
in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance
Regulatory and Development Authority of India (“IRDAI"/ "Authority") and the Institute of Actuaries of India in concurrence with
the Authority. We have relied upon the Appointed Actuary''s certificate in this regard for forming our opinion on the valuation

of liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists, as
contained in the standalone financial statements/ information of the Corporation.

14. The audited financial statements/ information of the 4 foreign branches (United Kingdom, Mauritius, Fiji and GIFT City, India)
included in the Standalone Financial Statements reflect total assets of '' 5,090.08 crores as at March 31, 2025 total revenue of
'' 653.21 crores and net profit of '' 58.69 crores for the year ended March 31, 2025. Our opinion on the standalone financial
statements, in so far as it relates to the amounts and disclosures included in respect of these 3 foreign branches is based solely
on report of such other auditors and for 1 branch audited by one of the corporation auditors.

15. The financial statements / information of 8 Zonal Offices, 113 Divisional Offices (DO) (including branches there under) and
77 units of Pension & Group Schemes (P&GS) included in the Standalone Financial Statements of the Corporation, have been
audited by the zonal/ divisional auditors, whose reports have been furnished to us, and our opinion in so far as it relates to
the amounts and disclosures included in respect of zones/ divisions / branches, is based solely on the report of such zonal/
divisional auditors.

The information of total assets and total revenue in respect of the branches are not separately compiled as the divisions receive
only trial balances of each branch, which are consolidated at division level and thereafter at zonal level.

16. The Standalone Financial Statements includes figures for the year ended March 31,2024, audited by the joint auditors of the
Corporation, one of whom was a predecessor audit firm, where they had expressed an unmodified opinion on such standalone
financial statements vide their report dated May 27, 2024.

Our opinion is not modified in respect of the above matters.

Report on other legal and regulatory requirements.

17. As required by the Regulations, we have issued a separate certificate dated May 27, 2025 certifying the matters specified in
paragraphs 3 and 4 of Part III to the Regulations.

18. The Actuarial Valuation of liabilities for life policies in force and policies in respect of which premium has been discontinued but
liability exists as at March 31, 2025 is the responsibility of the Corporation’s appointed actuary (‘the Appointed Actuary’). The
Appointed Actuary has duly certified the actuarial valuation of liabilities and the fund for future appropriation for life policies in
force and policies in respect of which premium has been discontinued but liability exists as at March 31,2025 and in his opinion
the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory
and Development Authority of India and the Institute of Actuaries of India in concurrence with the Insurance Regulatory and
Development Authority of India. We have relied upon the Appointed Actuary’s Certificate in this regard for forming our opinion
on the valuation of liabilities and the fund for future appropriation for life policies in force and for polices in respect of which
premium has been discontinued but liability exists in the financial statements of the Corporation.

19. Further, to our comments in the Certificate referred to in paragraph 17 above, as required under the Part III of Regulation 3 of
IRDA Regulations and also as required under sub section (3) of Section 25B to the LIC Act (as amended) we report that;

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and have found them to be satisfactory.

ii. In our opinion and to the best of our information and according to the explanations given to us, proper books of account
as required by law have been maintained by the Corporation so far as it appears from our examination of those books;

iii. In our opinion proper returns of zones/ divisional offices and branches have been received and found them adequate for
the purpose of audit;

iv. The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by
this report are in agreement with the books of account and returns;

v. In our opinion and to the best of our information and according to the explanations given to us, the Investments have
been valued in accordance with the provisions of the Insurance Act, Regulations and orders / directions issued by IRDA
in this behalf;

vi. In our opinion and to the best of our information and according to the explanations given to us, the accounting policies
adopted by the Corporation are appropriate and are in compliance with the applicable accounting standards specified
under section 133 of the Companies Act, 2013, to the extent not inconsistent with the accounting principles prescribed
in the IRDA Regulations and orders / directions / circulars issued by IRDA in this regard.

vii. No directors are disqualified as per clause (i) of section 4A of the LIC Act (as amended).

viii. There are no qualification or adverse remarks relating to maintenance of accounts and matters connected therewith;

ix. With respect to the adequacy of the internal financial controls over financial reporting of the Corporation and the operating
effectiveness of such controls, refer to our separate report in “Annexure A”.

x. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given
to us:

a) The Corporation has disclosed the impact of pending litigations on its financial position in its financial statements.

b) The Corporation has made provision as at March 31, 2025, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

c) There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the
Corporation for the year ended March 31,2025.

d) i. The management has represented that, to the best of its knowledge and belief, other than as disclosed in

the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Corporation to or in any other person(s) or
entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Corporation ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries to the financial statements);

ii. The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the notes to the accounts, no funds have been received by the Corporation from any person(s) or
entity(ies),including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing
or otherwise, that the Corporation shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

iii. Based on such audit procedures that we considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (d)
(i) and (ii) above contain any material misstatement.

e) The final dividend paid by the Corporation during the year in respect of the same declared for the previous year
is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend. As
stated in Schedule 15A(C) Note No. 30 to the Standalone financial statements, the Board of Directors of the
Corporation have proposed final dividend for the year which is subject to the approval of the members at the
ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act
as applicable.

f) Based on our examination which included test checks, the Corporation has used accounting softwares for
maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same have
operated throughout the year for all relevant transactions recorded in the respective software except that:

i) All eFeap servers including DB servers are under Privilege Access Management(PAM). In PAM system logs
of all commands executed are captured and recorded. However, audit transaction log in Database is not
enabled due to performance and space issues, but transaction level logs of eFeap can be derived from the
relevant module tables (history tables). Also database transaction log is available as mySQLbinlog.

ii) In case of ePGS, audit transaction log in Database is not enabled due to performance and space constraints.
However, data required for audit is maintained in the history table of the respective module. In addition to this
the application log, server log, LB logs are also captured to augment the audit data. Tansaction level logs of
ePGS can be derived from the relevant module tables.

Further, during the course of our audit, we did not come across any instances of audit trail feature being
tampered with and the audit trail has been preserved by the Corporation as per the statutory requirements
for record retention.

20. The Corporation has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the
provisions of Section 197 of the Act and Section 34A of the Insurance Act.

V. Sankar Aiyar & Co. Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

FRN: 109208W FRN: 101872W/W100045

CA L V Saptharishi CA Dharmista Shah

Partner Partner

Membership No.: 127055 Membership No.: 108845

UDIN: 25127055BMOCPC9743 UDIN: 25108845BMFXSG4800

Place: Mumbai
Date: May 27^th, 2025

---

Mar 31, 2024

1. We have audited the accompanying standalone financial statements of Life Insurance Corporation of India (“the Corporation”), which comprise of the standalone balance sheet as at March 31, 2024, the standalone revenue account (also called the “Policyholders’ Account” or the “Technical Account”), standalone profit and loss account (also called the “Shareholders’ Account” or the “Non - Technical Account”) and the standalone receipts and payments account (also called as the “Cash Flow Statement”) for the year ended March 31 2024, and a summary of significant accounting policies and other explanatory information, in which are included 8 Zonal Offices, 113 Divisional Offices and 78 units of Pension & Group Schemes audited by the zonal/divisional auditors appointed by the Corporation and audited returns of 3 foreign branches (Fiji, Mauritius and United Kingdom) audited by their respective local auditors.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements are prepared, in accordance with the Life Insurance Corporation Act 1956 ( the “LIC Act”), as amended, the Insurance Act, 1938 (the “Insurance Act”), as amended, Insurance Regulatory and Development Act, 1999 (the “IRDA Act”), Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “Regulations”), including orders/ directions/ circulars issued by the Insurance Regulatory and Development Authority of India (“IRDAI”), including the accounting standards specified under section 133 of the Companies Act, 2013,to the extent applicable and in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, as applicable to insurance companies:

i. in the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31,2024;

ii. in the case of the Revenue Account, of the net surplus for the year ended on that date;

iii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iv. in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA’s) issued by the Institute of Chartered Accountants of India (“ICAI”). Our responsibilities under those standards are further described in the auditors’ responsibilities for the audit of Financial Statements section of our report. We are independent of the Corporation in accordance with the code of ethics issued by the ICAI together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the LIC Act, as amended, the Insurance Act, as amended; the IRDA Act; Regulations and orders / circulars issued by IRDAI and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matters

4. We invite attention to the following notes under Schedule 15A(C):

a) Note No. 20 regarding the liability on account of additional contribution of '' 11,124.66 crore arising due to fresh pension option to employees in the financial year 2019-20 is being provided over a period of five years commencing from the financial year 2019-20 in accordance with the requisite approval dated July 6, 2020. Accordingly, the remaining amount of '' 2,224.94 crore has been charged to Revenue Account for the year ended March 31,2024.

b) Note No. 21 regarding, total additional contribution of '' 11,959.52 crore towards increase in family pension due to amendment in LIC (Employees) Pension Rules 1995, out of which, the Corporation had already provided an amount of '' 2,679.15 crore during the quarter ended September 30, 2023. Pursuant to the approval received by the Corporation during the quarter ended December 31, 2023, the remaining liability of '' 9,280.37 crore is being amortised over 20 quarters commencing from Q3 of the FY 2023-24 amounting to '' 464.02 crore per quarter. Accordingly, an amount of '' 464.02 crore has been charged to Revenue Account for the quarter ended March 31,2024.The balance amount of '' 8,352.33 crore shall be amortised over the subsequent quarters upto Q2 of the FY 2028-29.

c) Note No. 22 regarding additional pension liability due to wage revision to employees of the Corporation amounting to '' 6,306.29 crore. Out of this, '' 829.19 crore has been recognized in the FY 2023-2024 in the respective segments and balance amount of '' 5,477.10 crore pertaining to Par segment shall be charged to the Shareholders account over a period of not exceeding three years commencing from the FY 2024-2025. The Corporation has obtained the requisite approval.

d) Note No. 23 regarding an amount of '' 7,230.09 crore in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished from Shareholders’ account in equal annual instalments not exceeding three, commencing from Q1 of the FY 2024-2025.The Corporation has obtained the requisite approval.

e) Note No. 26 regarding the change in accounting policy in September, 2022 with respect to transfer of amount pertaining to the accretion of the available solvency margin from Non-Participating Policyholders account to Shareholders account and resultant transfer of total amount of '' 29,518.75 crore (net of tax) in the FY 2023-24 compared to '' 27,240.75 crore in the FY 2022-23, which included an amount of '' 4,542.31 crore pertaining to the quarter ended March 31, 2022.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter below to be the key audit matter to be communicated in our report.

Key audit matters

How our audit addressed the key audit matters

Classification and Valuation of Investments (31.03.2024: '' 49,75,514.19 crore) (Refer Schedule 8, 8A and 8B of the financial statements. Refer schedule 15A(A)6 to the financial statements for accounting policy.) The Corporation’s investment portfolio is bifurcated into linked and non-linked. The investment portfolio forms significant portion of the total assets of the Corporation. As prescribed by Insurance Regulatory and Development Authority of India (the “IRDAI”), all investments should be in accordance with the Insurance Regulatory and Development Authority of India (Investment Regulations, 2016) (the “Investment Regulations”) and policies approved by Board of Directors of the Corporation.

We have carried out the following key audit procedures: • Understood the Corporation’s process and procedures and tested controls to ensure proper classification and valuation/ impairment of investments. • Tested recording of investments on sample basis and verified classification of investments and compliance with Investment Regulations and policies approved by Board of Directors of the Corporation. • Assessed valuation of securities to examine whether the same is in accordance with the Investment Regulations and Corporation’s accounting policies.

Key audit matters	How our audit addressed the key audit matters
Also, all investments should be valued as prescribed in the Investment Regulations which prescribe the valuation methodology to be adopted for each class of investments. The unlisted or other than actively traded investments are measured at historical cost less provision for diminution/ impairment, which involves management judgement and estimate. Further, due to the reassessment of the investee company’s rating, there could be a need for reclassification of investment and consequent impact on its valuation / impairment keeping in view the Investment Regulations and/ or Corporation’s internal policies. Hence, the valuation of investments was considered to be one of the areas which required our significant attention and was one of the key audit matters due to the materiality of total value of investments to the financial statements.	• Tested impairment/provision of securities (including reversal), which have been observed and are in accordance with the Investment Regulations and Corporation’s impairment policies. • In respect of unlisted and other than actively traded investments, we evaluated the Corporation’s valuation methodology and assumptions and corroborated these with Investment Regulations and Corporation’s internal policies including those related to impairment. • For any changes in ratings of the investee company, we examined the Corporation’s assessment with the Investment Regulations and Corporation’s internal policies for reclassification and valuation. • We have perused the available concurrent audit reports on investments. Based on the work carried out, we did not come across any significant matter which indicates that the investments were not properly classified or valued.
Appropriateness of the Timing of Revenue Recognition in the proper period Refer Revenue Account of the standalone financial statements. During the year, the Corporation has recognised net premium income of '' 4,75,069.58 crore. We have focused on this area because of the significant concentration of revenue during the last quarter of financial year (including cut-off at the Balance sheet date). Due to the nature of the industry, revenue is skewed towards the balance sheet date. Hence, there is possibility that policy sales of the next financial year are accounted in the current period.	Our procedures included the following: • Understood and evaluated the design and operating effectiveness of process and controls relating to recognition of revenue. • Testing of key controls for ensuring that the revenue has been accrued in the correct accounting period. • Tested on a sample basis the policies at the year end to confirm if related procedural compliances with regard to acceptability of the terms of policy were completed before the year end to ensure appropriate accounting of revenue. • Tested on a sample basis unallocated premium / proposal deposit/ premium deposit to ensure that there were no policies where risk commenced prior to balance sheet but revenue was not recognised. Based on the work carried out, we did not come across any significant matter which indicates that the revenue recognition is not accounted in the correct period.

Key audit matters	How our audit addressed the key audit matters
Contingencies relating to certain matters pertaining to	Our procedures included the following:
Income Tax	• Understood Management’s process and control for
Refer note no. B(1) of schedule 15A to the financial statements.	determining tax litigations and its appropriate accounting
The Corporation has received various demand notices (mostly	and disclosure.
industry specific) from the tax authorities in respect of matters	• Discussed pending matters with the Corporation’s legal
relating to Income Tax.	counsel and in-house tax experts.
The said matters mainly involving material amounts are pending	• Assessed management’s conclusions to gain an
before Supreme Court and High Courts.	understanding of the current status of the tax cases and monitoring of changes in disputes to establish that the tax provisions reflect the latest external developments.
The management with the help of its expert, as needed, have made judgments relating to the likelihood of an obligation arising and whether there is a need to recognise a provision or disclose a contingent liability. We focused on this area as a result of uncertainty, use of management''s judgement for assessment and potential material impact on the financial statements.	Based on the work performed, in view of the contingencies relating to certain matters pertaining to Income Tax, we determined the extent of provisioning and disclosure of contingent liabilities as at March 31,2024 to be reasonable.

Information Other than the Standalone Financial Statements and Auditors’ Report thereon

6. The Corporation’s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditors’ report thereon. The annual report is expected to be made available to us after the date of this auditors’ report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we will communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for Standalone Financial Statements

7. The Corporation’s Board of Directors is responsible for the preparation and presentation of these Standalone Financial Statements in terms of the requirements of the LIC Act, as amended,so that they give a true and fair view of the balance sheet, the revenue account, the profit and loss account and the receipts and payments account of the Corporation, in accordance with accounting principles generally accepted in India including the provisions of the LIC Act, as amended, the Insurance Act, as amended read with the IRDA Act, the Regulations, order/ directions issued by the IRDAI in this regard and in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Companies Act, 2013 to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the LIC Act, as amended, the Insurance Act, as amended; IRDA Act; Regulations and orders / circulars issued by the IRDA for safeguarding of the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.

The Corporation’s Board of Directors are also responsible for overseeing the Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Standalone Financial Statements.

8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

ii. Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to Continue as a going concern.

v. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

vi. Obtain sufficient appropriate audit evidence regarding the financial information of the departments/ units of Central office to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of departments/ units of Central office included in the standalone financial statements of which we are the independent auditors. For the zones/ divisions/ branches/ units included in the standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

13. The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation’s Appointed Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists as at March 31,2024 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority of India (“IRDAI”/ “Authority”) and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuary’s certificate in this regard for forming our opinion on the valuation of liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists, as contained in the standalone financial statements/ information of the Corporation.

14. The audited financial statements/ information of the 3 foreign branches (United Kingdom, Mauritius and Fiji) included in the Standalone Financial Results and used for preparation of consolidated financial results reflect total assets of '' 5,062.41 crores as at March 31, 2024 total revenue of '' 730.15 crores and net loss of '' 5.16 crores for the year ended March 31, 2024. Our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these 3 foreign branches is based solely on report of such other auditors.

15. We did not audit the financial statements / information of 8 Zonal Offices, 113 Divisional Offices (DO) (including branches there under) and 78 units of Pension & Group Schemes (P&GS) included in the Standalone Financial Results of the Corporation, whose audited financial statements / information, have been audited by the zonal/ divisional auditors, whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of zones/ divisions / branches, is based solely on the report of such zonal/ divisional auditors.

The information of total assets and total revenue in respect of the branches are not separately compiled as the divisions receive only trial balances of each branch, which are consolidated at division level and thereafter at zonal level.

Our opinion is not modified in respect of the above matters.

Report on other legal and regulatory requirements.

16. As required by the Regulations, we have issued a separate certificate dated May 27, 2024 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the Regulations.

17. The Actuarial Valuation of liabilities for life policies in force and policies in respect of which premium has been discontinued but liability exists as at March 31, 2024 is the responsibility of the Corporation’s appointed actuary (‘the Appointed Actuary’). The Appointed Actuary has duly certified the actuarial valuation of liabilities and the fund for future appropriation for life policies in force and policies in respect of which premium has been discontinued but liability exists as at March 31,2024 and in his opinion the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority of India and the Institute of Actuaries of India in concurrence with the Insurance Regulatory and Development Authority of India. We have relied upon the Appointed Actuary’s Certificate in this regard for forming our opinion on the valuation of liabilities and the fund for future appropriation for life policies in force and for polices in respect of which premium has been discontinued but liability exists in the financial statements of the Corporation.

18. Further, to our comments in the Certificate referred to in paragraph 16 above, as required under the Schedule C of Regulation

3 of IRDA Regulations and also as required under sub section (3) of Section 25B to the LIC Act (as amended) we report that;

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.

ii. In our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Corporation so far as it appears from our examination of those books;

iii. In our opinion proper returns of zones/ divisional offices and branches have been received and found them adequate for the purpose of audit;

iv. The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by this report are in agreement with the books of account and returns;

v. In our opinion and to the best of our information and according to the explanations given to us, the Investments have been valued in accordance with the provisions of the Insurance Act, Regulations and orders / directions issued by IRDA in this behalf;

vi. In our opinion and to the best of our information and according to the explanations given to us, the accounting policies adopted by the Corporation are appropriate and are in compliance with the applicable accounting standards specified under section 133 of the Companies Act, 2013, to the extent not inconsistent with the accounting principles prescribed in the IRDA Regulations and orders / directions / circulars issued by IRDA in this regard.

vii. No directors are disqualified as per clause (i) of section 4A of the LIC Act (as amended).

viii. There are no qualification or adverse remarks relating to maintenance of accounts and matters connected therewith;

ix. With respect to the adequacy of the internal financial controls over financial reporting of the Corporation and the operating effectiveness of such controls, refer to our separate report in “Annexure A”.

x. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

a) The Corporation has disclosed the impact of pending litigations on its financial position in its financial statements.

b) The Corporation has made provision as at March 31, 2024, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

c) There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Corporation for the year ended March 31,2024.

d) i. The management has represented that, to the best of its knowledge and belief, other than as disclosed in

the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Corporation to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Corporation (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Schedule 16C(21) to the financial statements);

ii. The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Corporation from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Corporation shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

iii. Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (ii) above contain any material misstatement.

e) The final dividend paid by the Corporation during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend. As stated in Schedule 15(C) Note No. 35 to the Standalone financial statements, the Board of Directors of the Corporation have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Corporation with effect from April 1, 2023.

Based on our examination which included test checks, the Corporation has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same have operated throughout the year for all relevant transactions recorded in the respective software except that:

i) All eFeap servers including DB servers are under Privilege Access Management (PAM). In PAM system logs of all commands executed are captured and recorded. Also database transaction log is available as mySQLbinlog. However, audit transaction log in Database is not enabled due to performance and space issues, but transaction level logs of eFeap can be derived from the relevant module tables (history tables). Also database transaction log is available as mySQLbinlog.

ii) In case of ePGS, audit transaction log in Database is not enabled due to performance and space constraints. However, data required for audit is maintained in the history table of the respective module. In addition to this the application log, server log, LB logs are also captured to augment the audit data. Transaction level logs of ePGS can be derived from respective module tables.

Further, during the course of our audit, we did not come across any instances of audit trail feature being tampered with.

As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of the Audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

19. The Corporation has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act and Section 34A of the Insurance Act.

M/s. Batliboi and Purohit Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

FRN: 101048W FRN: 101872W/W100045

CA Parag Hangekar CA Vineet Saxena

Membership No.: 110096 Membership No.: 100770

Place: Mumbai Place: Mumbai

Date: May 27, 2024 Date: May 27, 2024

UDIN: 24110096BKCXHP6316 UDIN: 24100770BKCOSK8600

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Mar 31, 2023

Life Insurance Corporation of India

Report on the Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements of Life Insurance Corporation of India ("the Corporation"), which comprise of the standalone balance sheet as at March 31, 2023, the standalone revenue account (also called the “Policyholders'' Account” or the “Technical Account”), standalone profit and loss account (also called the “Shareholders'' Account” or the “Non - Technical Account”) and the standalone receipts and payments account (also called as the “Cash Flow Statement”) for the year ended March 31 2023, and a summary of significant accounting policies and other explanatory information, in which are included 8 Divisional Offices and 3 units of Pension & Group Schemes audited by us, 105 Divisional Offices and 71 units of Pension & Group Schemes audited by other auditors appointed by the Corporation and audited returns of 3 foreign branches (Fiji, Mauritius and United Kingdom) audited by their respective local auditors.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements are prepared, in accordance with the Life Insurance Corporation Act 1956 ( the “LIC Act”), as amended, the Insurance Act, 1938 (the “Insurance Act”), as amended, Insurance Regulatory and Development Act, 1999 (the “IRDA Act”), Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002 (the “Regulations”), including orders/ directions/ circulars issued by the Insurance Regulatory and Development Authority of India (“IRDAI”), including the accounting standards specified under section 133 of the Companies Act, 2013, to the extent applicable and in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, as applicable to insurance companies:

i. in the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31,2023;

ii. in the case of the Revenue Account, of the net surplus for the year ended on that date;

iii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iv. in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA''s) issued by the Institute of Chartered Accountants of India (“ICAI”). Our responsibilities under those standards are further described in the auditors'' responsibilities for the audit of Financial Statements section of our report. We are independent of the Corporation in accordance with the code of ethics issued by the ICAI together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the LIC Act, as amended, the Insurance Act, as amended; the IRDA Act; Regulations and orders / circulars issued by IRDAI and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matters

4. We invite attention to:

a. Note No. 12(D) regarding liability on account of additional contribution of Rs. 11,12,466.00 lakhs, arisen due to fresh option to employees in financial year 2019-20, which is being provided over a period of five years from financial year 2019-20 in accordance with the approval granted by IRDAI vide its letter no. 101/2/F&A-Life/LIC/2018-19/208 dated 06-07-2020. Accordingly, an amount of Rs. 2,22,493.00 lakhs has been charged to Revenue Account for the year ended March 31, 2023 and balance amount of Rs. 2,22,494.00 lakhs is to be provided over the period upto March 31, 2024.

b. Note No. 20 regarding estimated additional provision of Rs. 11,54,375.87 Lakhs made for Employees retirement benefits due to the wage revision which became due with effect from 01/08/2022.

c. Note No. 23 regarding change in accounting policy resulting in transfer of Rs.27,24,075.30 lakhs (Net of Tax) pertaining to the\ accretion on the Available Solvency Margin from Non-Par to Shareholder''s Account due to which the Profit for the financial year ended as on 31/03/2023 has increased to that extent.

d. Note No. 24 regarding reduction in the provision for Income Tax for F.Y. 2022-23 by Rs. 7,18,599.85 lakhs as the provision has been made on the shareholders share in the “Actuarial Valuation Surplus” as against total “Actuarial Valuation Surplus” in respect of participating line of business.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter below to be the key audit matter to be communicated in our report.

Key audit matters

How our audit addressed the key audit matters

Classification and Valuation of Investments (31.03.2023: Rs. 42,63,822.79 crore and 31.03.2022: Rs.39,61,531.62 crore) (Refer Schedule 8, 8A and 8B of the financial statements. Refer schedule 15A(A)6 to the financial statements for accounting policy.) The Corporation''s investment portfolio is bifurcated into linked and non-linked. The investment portfolio forms significant portion of the total assets of the Corporation. As prescribed by Insurance Regulatory and Development Authority of India (the “IRDAI”), all investments should be in accordance with the Insurance Regulatory and Development Authority of India (Investment Regulations, 2016) (the “Investment Regulations”) and policies approved by Board of Directors of the Corporation. Also, all investments should be valued as prescribed in the Investment Regulations which prescribe the valuation methodology to be adopted for each class of investments. The unlisted or other than actively traded investments are measured at historical cost less provision for diminution/ impairment, which involves management judgement and estimate. Further, due to the reassessment of the investee company''s rating, there could be a need for reclassification of investment and consequent impact on its valuation / impairment keeping in view the Investment Regulations and/ or Corporation''s internal policies. Hence, the valuation of investments was considered to be one of the areas which required our significant attention and was one of the key audit matters due to the materiality of total value of investments to the financial statements.

We have carried out the following key audit procedures: • Understood the Corporation''s process and procedures and tested controls to ensure proper classification and valuation/ impairment of investments. • Tested recording of investments on sample basis and verified classification of investments and compliance with Investment Regulations and policies approved by Board of Directors of the Corporation. • Assessed valuation of securities to examine whether the same is in accordance with the Investment Regulations and Corporation''s accounting policies. • Tested impairment/provision of securities (including reversal), which have been observed and are in accordance with the Investment Regulations and Corporation''s impairment policies. • In respect of unlisted and other than actively traded investments, we evaluated the Corporation''s valuation methodology and assumptions and corroborated these with Investment Regulations and Corporation''s internal policies including those related to impairment. • For any changes in ratings of the investee company, we examined the Corporation''s assessment with the Investment Regulations and Corporation''s internal policies for reclassification and valuation. • We have perused the available concurrent audit reports on investments. Based on the aforesaid procedures carried out by us, we have not come across any significant matter, which indicates that the investments were not properly classified or valued.

Key audit matters	How our audit addressed the key audit matters
Appropriateness of the Timing of Revenue Recognition in the proper period Refer Schedule 1 of the standalone financial statement. During the year, the Corporation has recognised net premium revenue of Rs 4,74,00,461.05 lakhs. We have focused on this area because of the significant concentration of revenue during the last quarter of financial year (including cut-off at the Balance sheet date). Due to the nature of the industry, revenue is skewed towards the balance sheet date. Hence, there is possibility that policy sales of the next financial year are accounted in the current period.	Our procedures included the following: • Understood and evaluated the design and operating effectiveness of process and controls relating to recognition of revenue. • Testing of key controls for ensuring that the revenue has been accrued in the correct accounting period. • Tested on a sample basis the policies at the year end to confirm if related procedural compliances with regard to acceptability of the terms of policy were completed before the year end to ensure appropriate accounting of revenue. • Tested on a sample basis unallocated premium / proposal deposit / premium deposit to ensure that there were no policies where risk commenced prior to balance sheet but revenue was not recognised. Based on the aforesaid procedures carried out by us, we have not come across any significant matter, which suggests that the revenue recognition is not accounted in the correct period.
Contingencies relating to certain matters pertaining to Income Tax Refer note no. B(1) of schedule 15(A) to the financial statements. The Corporation has received various demand notices (mostly industry specific) from the tax authorities in respect of matters relating to Income Tax. The said matters mainly involving material amounts are pending before Supreme Court and High Courts. The management with the help of its expert, as needed, have made judgments relating to the likelihood of an obligation arising and whether there is a need to recognise a provision or disclose a contingent liability. We focused on this area as a result of uncertainty, use of management''s judgement for assessment and potential material impact on the financial statements.	Our procedures included the following: • Understood Management''s process and control for determining tax litigations and its appropriate accounting and disclosure. • Discussed pending matters with the Corporation''s legal counsel and in-house tax experts. • Assessed management''s conclusions to gain an understanding of the current status of the tax cases and monitoring of changes in disputes to establish that the tax provisions reflect the latest external developments. Based on the aforesaid procedures carried out by us, in view of the contingencies relating to certain matters pertaining to Income Tax, we determined the extent of provisioning and disclosure of contingent liabilities as at March 31, 2023 to be reasonable.

Information Other than the Standalone Financial Statements and Auditors'' Report thereon

6. The Corporation''s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditors'' report thereon. The annual report is expected to be made available to us after the date of this auditors'' report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we will communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for Standalone Financial Statements

7. The Corporation''s Board of Directors is responsible for the preparation and presentation of these Standalone Financial Statements in terms of the requirements of the LIC Act, as amended, so that they give a true and fair view of the balance sheet, the revenue account, the profit and loss account and the receipts and payments account of the Corporation, in accordance with accounting principles generally accepted in India including the provisions of the LIC Act, as amended , the Insurance Act, as amended read with the IRDA Act, the Regulations, order/ directions issued by the IRDAI in this regard and in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Companies Act, 2013 to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the LIC Act, as amended, the Insurance Act, as amended; IRDA Act; Regulations and orders / circulars issued by the IRDA for safeguarding of the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Corporation''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.

The Corporation''s Board of Directors are also responsible for overseeing the Corporation''s financial reporting process.

Auditors'' Responsibilities for the Audit of the Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

ii. Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the Corporation to cease to Continue as a going concern.

v. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,^ and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

vi. Obtain sufficient appropriate audit evidence regarding the financial information of the divisions / branches / units to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of divisions/ branches/ units included in the standalone financial statements of which we are the independent auditors. For the other divisions/ branches/ units included in the standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance

in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in

our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

13. As noted above, the audited financial statements/ information of the 3 foreign branches (United Kingdom, Mauritius and Fiji) included in the Standalone Financial Statements reflect total assets of Rs.4,73,832.70 Lakhs as at March 31,2023, total revenue of Rs. 62,823.95 Lakhs and net profit of Rs. 85.49 Lakhs for the year ended March 31, 2023. Our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these 3 foreign branches is based solely on report of such other auditors.

14. We did not audit the financial statements / information of 105 Divisional Offices (DO) including branches there under and 71

units of Pension & Group Schemes (P&GS) included in the Standalone Financial Statements of the Corporation whose audited

financial statements / information, have been audited by the divisional / branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of divisions / branches, is based solely on the report of such divisional / branch auditors.

The information of total assets and total revenue in respect of the branches audited by other auditors are not separately compiled as the divisions receive only trial balances of each branch which are consolidated at division level and thereafter at zonal level.

15. The actuarial valuation of liabilities for life policies in-force and policies where premium is discontinued is the responsibility of the Corporation''s Appointed Actuary (the “Appointed Actuary”), has been certified by them in accordance with the regulations, as mentioned in paragraph 17 below. Accordingly, we have relied upon the Appointed Actuary''s certificate for forming our opinion on the standalone financial statements of the Corporation.

Our opinion is not modified in respect of the above matters.

Report on other legal and regulatory requirements

16. As required by the Regulations, we have issued a separate certificate dated May 24, 2023 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the Regulations.

17. The Actuarial Valuation of liabilities for life policies in force and policies in respect of which premium has been discontinued but liability exists as at March 31, 2023 is the responsibility of the Corporation''s appointed actuary (''the Appointed Actuary''). The Appointed Actuary has duly certified the actuarial valuation of liabilities and the fund for future appropriation for life policies

in force and policies in respect of which premium has been discontinued but liability exists as at March 31, 2023 and in his\ opinion the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority of India and the Institute of Actuaries of India in concurrence with the Insurance Regulatory and Development Authority of India. We have relied upon the Appointed Actuary''s Certificate in this regard for forming our opinion on the valuation of liabilities and the fund for future appropriation for life policies in force and for polices in respect of which premium has been discontinued but liability exists in the financial statements of the Corporation.

18. As per para 6(5) of Master circular No. IRDA/F&A/CIR/MISC/282/11/2020 dated 17/11/2020, the “Outstanding unclaimed amounts/ deposits” and “Interest accrued on unclaimed amounts” aggregating to Rs 19,07,168.47 Lakhs does not match with the “Assets pertaining to unclaimed amounts” of Rs. 19,03,265.03 Lakhs.

19. Further, to our comments in the Certificate referred to in paragraph 16 above, as required under the Schedule C of Regulation 3 of IRDA Regulations and also as required under sub section (3) of Section 25B to the LIC Act (as amended) we report that;

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.

ii. In our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Corporation so far as it appears from our examination of those books;

iii. In our opinion proper returns of Divisional Offices and branches have been received and found them adequate for the purpose of audit;

iv. The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by this report are in agreement with the books of account and returns;

v. In our opinion and to the best of our information and according to the explanations given to us, the Investments have been valued in accordance with the provisions of the Insurance Act, Regulations and orders / directions issued by IRDA in this behalf;

vi. In our opinion and to the best of our information and according to the explanations given to us, the accounting policies adopted by the Corporation are appropriate and are in compliance with the applicable accounting standards specified under section 133 of the Companies Act, 2013, to the extent not inconsistent with the accounting principles prescribed in the IRDA Regulations and orders / directions / circulars issued by IRDA in this regard.

vii. No directors are disqualified as per clause (i) of section 4A of the LIC Act (as amended).

viii. There are no qualification or adverse remarks relating to maintenance of accounts and matters connected therewith;

ix. The Corporation has adequate Internal financial controls over financial statements in place and they are operating effectively as on March 31, 2023. Refer to our separate report as Annexure A for opinion over Internal financial controls over financial statements

M/s. R G N Price & Co. M/s. abm & associates LLP

Chartered Accountants Chartered Accountants

FRN: 002785S FRN: 105016W/W-100015

CA A R Parthasarathy CA Ashwin Morche

Membership No.: 205702 Membership No.:104126

Place: Mumbai Place: Mumbai

UDIN: 23205702BGWTWM7529 UDIN: 23104126BGXELL6628

M/s. Batliboi and Purohit M/s. A R & Co.

Chartered Accountants Chartered Accountants

FRN: 101048W FRN: 002744C

CA Parag Hangekar CA Priyanshu Jain

Membership No.: 110096 Membership No.: 530262

Place: Mumbai Place: Mumbai

UDIN: 23110096BGXDYM2174 UDIN: 23530262BGWUHJ8742

M/s. Todi Tulsyan & Co. M/s. Ray & Ray,

Chartered Accountants Chartered Accountants

FRN: 002180C FRN: 301072E

CA Sushil Kumar Tulsyan CA Nabanita Ghosh

Membership No.: 075899 Membership No.: 058477

Place: Mumbai Place: Mumbai

UDIN:23075899BGWYJC9810 UDIN: 23058477BHAGIS2886

M/s. Ramamoorthy (N) & Co. Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

FRN: 002899S FRN: 101872W/W100045

CA Surendranath Bharathi CA Vineet Saxena

Membership No.: 023837 Membership No.: 100770

Place: Mumbai Place: Mumbai

UDIN: 23023837BGXCVF1478 UDIN: 23100770BGXLHH9505

B C Jain & Co. Rama K Gupta & Co

Chartered Accountants Chartered Accountants

FRN: 001099C FRN: 005005C

CA Shyam Ji Gupta CA Amit Singhal

Membership No.: 416155 Membership No.: 434384

Place: Mumbai Place: Mumbai

UDIN: 23416155BBGQBSD4214 UDIN: 23434384BGVNPF5310

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Mar 31, 2022

Opinion

1. We have audited the accompanying standalone financial statements of Life Insurance Corporation of India ("the Corporation"), which comprise of the standalone balance sheet as at March 31, 2022, the standalone revenue account (also called the "Policyholders'' Account" or the "Technical Account"), standalone profit and loss account (also called the "Shareholders'' Account" or the "Non - Technical Account") and the standalone receipts and payments account (also called as the "Cash Flow Statement") for the year ended March 31, 2022, and a summary of significant accounting policies and other explanatory information, in which are included audited returns of 3 foreign branches (United Kingdom, Mauritius and Fiji),8 Divisional Offices and 3 units of Pension & Group Schemes audited by us, 105 Divisional Offices and 68 units of Pension & Group Schemes audited by other auditors appointed by the Corporation.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements are prepared, in accordance with the Life Insurance Corporation Act 1956 ( the "LIC Act"), as amended, the Insurance Act, 1938 (the "Insurance Act"), as amended, Insurance Regulatory and Development Act, 1999 (the "IRDA Act"), Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002 (the "Regulations"), including orders/ directions/ circulars issued by the Insurance Regulatory and Development Authority of India ("IRDAI"), including the accounting standards specified under section 133 of the Companies Act, 2013,to the extent applicable and in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, as applicable to insurance companies:

i. in the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31, 2022;

ii. in the case of the Revenue Account, of the net surplus for the year ended on that date;

iii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iv. in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date. Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing ("SA"s) issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those standards are further described in the auditors''responsibilities for the audit of Financial Statements section of our report. We are independent of the Corporation in accordance with the code of ethics issued by the ICAI together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the LIC Act, as amended, the Insurance Act, as amended; the IRDA Act; Regulations and orders / circulars issued by IRDAI and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

4. We invite attention to:

a. Note No. C(22) of Schedule 15A regarding bifurcation of Single/Unified Policyholders'' fund into Participating and Non-Participating Policyholders'' fund, segregation of assets among Participating and Non-Participating, solvency margin of the Corporation and the rational adopted by the management of the Corporation for the realignment of the assets.

b. Note No. B(12)(C) of Schedule 15A regarding liability on account of additional contribution of Rs.11,12,466.00 Lakhs, arisen due to fresh option to employees in financial year 2019-20, which is being provided over a period of five years from financial year 2019-20 in accordance with the approval granted by IRDAI vide its letter no. 101/2/F&A-Life/ LIC/2018-19/208 dated 06-07-2020. Accordingly, an amount of Rs. 2,22,493.00 Lakhs has been charged to Revenue Account for the year ended March 31, 2022, respectively and balance amount of Rs. 4,44,986.00 Lakhs is to be provided over the period upto March 31, 2024.

c. Note No. (C)(19) of Schedule 15A regarding the uncertainties arising out of the outbreak of COVID-19 pandemic and assessment made by the management on its business and financial statements, including valuation of policy liabilities.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter below to be the key audit matter to be communicated in our report.

Key audit matters

How our audit addressed the key audit matters

Classification and Valuation of Investments (31.03.2022: '' 3961531.62 crore and 31.03.2021: '' 3556452.09 crore) (Refer Schedule 8, 8A and 8B of the financial statements. Refer schedule 15A(A)6 to the financial statements for accounting policy.) The Corporation''s investment portfolio is bifurcated into linked and non-linked. The investment portfolio forms significant portion of the total assets of the Corporation. As prescribed by Insurance Regulatory and Development Authority of India (the "IRDAI"), all investments should be in accordance with the Insurance Regulatory and Development Authority of India (Investment Regulations, 2016) (the "Investment Regulations") and policies approved by Board of Directors of the Corporation. Also, all investments should be valued as prescribed in the Investment Regulations which prescribe the valuation methodology to be adopted for each class of investments. The unlisted or other than actively traded investments are measured at historical cost less provision for diminution/ impairment, which involves management judgement and estimate. Further, due to the reassessment of the investee company''s rating, there could be a need for reclassification of investment and consequent impact on its valuation / impairment keeping in view the Investment Regulations and/ or Corporation''s internal policies. Hence, the valuation of investments was considered to be one of the areas which required our significant attention and was one of the key audit matters due to the materiality of total value of investments to the financial statements.

We have carried out the following key audit procedures: • Understood the Corporation''s process and procedures and tested controls to ensure proper classification and valuation/ impairment of investments. • Tested recording of investments on sample basis and verified classification of investments and compliance with Investment Regulations and policies approved by Board of Directors of the Corporation. • Assessed valuation of securities to examine whether the same is in accordance with the Investment Regulations and Corporation''s accounting policies. • Tested impairment/provision of securities (including reversal), which have been observed and are in accordance with the Investment Regulations and Corporation''s impairment policies. • In respect of unlisted and other than actively traded investments, we evaluated the Corporation''s valuation methodology and assumptions and corroborated these with Investment Regulations and Corporation''s internal policies including those related to impairment. • For any changes in ratings of the investee company, we examined the Corporation''s assessment with the Investment Regulations and Corporation''s internal policies for reclassification and valuation. • We have perused the available concurrent audit reports on investments. Based on the work carried out, we did not come across any significant matter which suggests that the investments were not properly classified or valued.

Key audit matters	How our audit addressed the key audit matters
Appropriateness of the Timing of Revenue Recognition in the proper period Refer Schedule 1 of the standalone financial statement. During the year, the Corporation has recognised net premium revenue of Rs 42741921.20Lakhs. We have focused on this area because of the significant concentration of revenue during the last quarter of financial year (including cut-off at the Balance sheet date). Due to the nature of the industry, revenue is skewed towards the balance sheet date. Hence, there is possibility that policy sales of the next financial year are accounted in the current period.	Our procedures included the following: • Understood and evaluated the design and operating effectiveness of process and controls relating to recognition of revenue. • Testing of key controls for ensuring that the revenue has been accrued in the correct accounting period. • Tested on a sample basis the policies at the year end to confirm if related procedural compliances with regard to acceptability of the terms of policy were completed before the year end to ensure appropriate accounting of revenue. • Tested on a sample basis unallocated premium / proposal deposit/ premium deposit to ensure that there were no policies where risk commenced prior to balance sheet but revenue was not recognised. Based on the work carried out, we did not come across any significant matter which suggests that the revenue recognition is not accounted in the correct period.
Contingencies relating to certain matters pertaining to Income Tax Refer note no. B(1) of schedule 15(A) to the financial statements. The Corporation has received various demand notices (mostly industry specific) from the tax authorities in respect of matters relating to Income Tax. The said matters mainly involving material amounts are pending before Supreme Court and High Courts. The management with the help ofits expert, as needed,have made judgments relating to the likelihood of an obligation arising and whether there is a need to recognise a provision or disclose a contingent liability. We focused on this area as a result of uncertainty, use of management''s judgement for assessment and potential material impacton the financial statements.	Our procedures included the following: • Understood Management''s process and control for determining tax litigations and its appropriate accounting and disclosure. • Discussed pending matters with the Corporation''s legal counsel and in-house tax experts. • Assessed management''s conclusions to gain an understanding of the current status of the tax cases and monitoring of changes indisputes to establish that the tax provisions reflect the latest external developments. Based on the work performed, in view of the contingencies relating to certain matters pertaining to Income Tax, we determined the extent of provisioning and disclosure of contingent liabilities as at March 31,2022 to be reasonable.

Information Other than the Standalone Financial Statements and Auditors'' Report thereon

6. The Corporation''s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditors'' report thereon. The annual report is expected to be made available to us after the date of this auditors'' report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we will communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for Standalone Financial Statements

7. The Corporation''s Board of Directors is responsible for the preparation and presentation of these Standalone Financial Statements in terms of the requirements of the LIC Act, as amended, so that they give a true and fair view of the balance sheet, the revenue account, the profit and loss account and the receipts and payments account of the Corporation, in accordance with accounting principles generally accepted in India including the provisions of the LIC Act, as amended , the Insurance Act, as amended read with the IRDA Act, the Regulations, order/ directions issued by the IRDAI in this regard and in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Companies Act, 2013 to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the LIC Act, as amended, the Insurance Act, as amended; IRDA Act; Regulations and orders / circulars issued by the IRDA for safeguarding of the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Corporation''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.

The Corporation''s Board of Directors are also responsible for overseeing the Corporation''s financial reporting process.

Auditors'' Responsibilities for the Audit of the Standalone Financial Statements.

8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

ii. Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the Corporation to cease to Continue as a going concern.

v. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

vi. Obtain sufficient appropriate audit evidence regarding the financial information of the divisions / branches / units to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of divisions/ branches/ units included in the standalone financial statements of which we are the independent auditors. For the other divisions/ branches/ units included in the standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

13. As noted above, the audited financial statements/ information of the 3 foreign branches (United Kingdom, Mauritius and Fiji) included in the Standalone Financial Statements reflect total assets of Rs.421209.84Lakhs, net assets of '' 2411.65 Lakhs, as at March 31, 2022, total revenue of '' 80633.96 Lakhs and net profit of Rs. 11.94 Lakhs for the year ended March 31, 2022. Our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these 3 foreign branches is based solely on report of such other auditors.

14. We did not audit the financial statements / information of 105 Divisional Offices (DO) including branches there under and 68 units of Pension & Group Schemes (P&GS) included in the Standalone Financial Statements of the Corporation whose audited financial statements / information, have been audited by the divisional / branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of divisions / branches, is based solely on the report of such divisional / branch auditors.

The information of total assets and total revenue in respect of the branches audited by other auditors are not separately compiled as the divisions receive only trial balances of each branch which are consolidated at division level and thereafter at zonal level.

15. The actuarial valuation of liabilities for life policies in-force and policies where premium is discontinued is the responsibility of the Corporation''s Appointed Actuary (the "Appointed Actuary"), has been certified by them in accordance with the regulations, as mentioned in paragraph 17 below. Accordingly, we have relied upon the Appointed Actuary''s certificate for forming our opinion on the standalone financial statements of the Corporation.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

16. As required by the Regulations, we have issued a separate certificate dated May 30, 2022 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the Regulations.

17. The Actuarial Valuation of liabilities for life policies in force and policies in respect of which premium has been discontinued but liability exists as at March 31, 2022 is the responsibility of the Corporation''s appointed actuary (''the Appointed Actuary''). The Appointed Actuary has duly certified the actuarial valuation of liabilities and the fund for future appropriation for life policies in force and policies in respect of which premium has been discontinued but liability exists as at March 31, 2022 and in his opinion the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority of India and the Institute of Actuaries of India in concurrence with the Insurance Regulatory and Development Authority of India. We have relied upon the Appointed Actuary''s Certificate in this regard for forming our opinion on the valuation of liabilities and the fund for future appropriation for life policies in force and for polices in respect of which premium has been discontinued but liability exists in the financial statements of the Corporation.

18. Further, to our comments in the Certificate referred to in paragraph 16 above, as required under the Schedule C of

Regulation 3 of IRDA Regulations and also as required under sub section (3) of Section 25B to the LIC Act (as amended) we

report that;

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.

ii. In our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Corporation so far as it appears from our examination of those books;

iii. In our opinion proper returns of Divisional Offices and branches have been received and found them adequate for the purpose of audit;

iv. The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by this report are in agreement with the books of account and returns;

v. In our opinion and to the best of our information and according to the explanations given to us, the Investments have been valued in accordance with the provisions of the Insurance Act, Regulations and orders / directions issued by IRDA in this behalf;

vi. In our opinion and to the best of our information and according to the explanations given to us, the accounting policies adopted by the Corporation are appropriate and are in compliance with the applicable accounting standards specified under section 133 of the Companies Act, 2013, to the extent not inconsistent with the accounting principles prescribed in the IRDA Regulations and orders / directions / circulars issued by IRDA in this regard.

vii. No directors are disqualified as per clause (i) of section 4A of the LIC Act (as amended).

viii. There are no qualification or adverse remarks relating to maintenance of accounts and matters connected therewith;

ix. The Corporation has adequate Internal financial controls over financial statements in place and they are operating effectively as on March 31, 2022. Refer to our separate report as Annexure A for opinion over Internal financial controls over financial statements.