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Winning Our Customers’ Hearts Annual Report 2013-14
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BSLI AR _15th cut

Feb 10, 2017

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Page 1: BSLI AR _15th cut

Winning Our Customers’ Hearts

Annual Report 2013-14

Page 2: BSLI AR _15th cut

Corporate ReportMessage from the MD & CEO ........................................................................................................... 02Board of Directors..............................................................................................................................03Senior Management Team.................................................................................................................08

Business ReportSnapshot of Financial Indicators .......................................................................................................11Insight ...............................................................................................................................................12Innovation ..........................................................................................................................................16Integration..........................................................................................................................................20Rewards & Recognitions ...................................................................................................................23

Financial ReportDirector’s Report................................................................................................................................25Management Discussion and Analysis ..............................................................................................35Corporate Governance Report ..........................................................................................................45Enterprise Risk Management Report.................................................................................................57Auditor's Report.................................................................................................................................61Financial Report.................................................................................................................................65

Annual Report 2013-14

About Us

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well-known Indian conglomerate and Sun Life Financial Inc., one of the leading international financial services organisations from Canada. With an experience of over a decade, BSLI has contributed to the growth and development of the Indian life insurance industry and currently is one of the leading life insurance companies in the country.

Our VisionTo be a leader and role model

Our Values

Integrity Commitment Passion Seamlessness Speed

Contents

At BSLI, we believe that our customer comes first.

In our business that is founded on trust, we proactively reach out to our customers and

remain driven by their needs. We constantly strive to understand what it is that our

customers look for, and channel our business to suit these different outcomes.

Everything we do, we do keeping our customers in mind, being constantly inspired by their

requirements. We believe that emphasizing quality in our customer service and offering

our customers compelling value will drive growth and profitability. The feedback we receive

and the new ideas we create, therefore, become our foundation to develop a long-lasting,

seamless customer experience.

As we set out yet again on a path of sustained growth, we rely on our 3-step model of

Insight, Innovation and Integration to keep our customers satisfied and secure, and

continue to build, preserve and nurture house-holds, generations and the nation.

1

Birla Sun Life Insurance

Page 3: BSLI AR _15th cut

Corporate ReportMessage from the MD & CEO ........................................................................................................... 02Board of Directors..............................................................................................................................03Senior Management Team.................................................................................................................08

Business ReportSnapshot of Financial Indicators .......................................................................................................11Insight ...............................................................................................................................................12Innovation ..........................................................................................................................................16Integration..........................................................................................................................................20Rewards & Recognitions ...................................................................................................................23

Financial ReportDirector’s Report................................................................................................................................25Management Discussion and Analysis ..............................................................................................35Corporate Governance Report ..........................................................................................................45Enterprise Risk Management Report.................................................................................................57Auditor's Report.................................................................................................................................61Financial Report.................................................................................................................................65

Annual Report 2013-14

About Us

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well-known Indian conglomerate and Sun Life Financial Inc., one of the leading international financial services organisations from Canada. With an experience of over a decade, BSLI has contributed to the growth and development of the Indian life insurance industry and currently is one of the leading life insurance companies in the country.

Our VisionTo be a leader and role model

Our Values

Integrity Commitment Passion Seamlessness Speed

Contents

At BSLI, we believe that our customer comes first.

In our business that is founded on trust, we proactively reach out to our customers and

remain driven by their needs. We constantly strive to understand what it is that our

customers look for, and channel our business to suit these different outcomes.

Everything we do, we do keeping our customers in mind, being constantly inspired by their

requirements. We believe that emphasizing quality in our customer service and offering

our customers compelling value will drive growth and profitability. The feedback we receive

and the new ideas we create, therefore, become our foundation to develop a long-lasting,

seamless customer experience.

As we set out yet again on a path of sustained growth, we rely on our 3-step model of

Insight, Innovation and Integration to keep our customers satisfied and secure, and

continue to build, preserve and nurture house-holds, generations and the nation.

1

Birla Sun Life Insurance

Page 4: BSLI AR _15th cut

Message from the MD & CEO

Dear Shareholders,

Financial year 2014 has been a defining year in the Indian life insurance industry. The industry adapted to multiple changes that reinforced the fundamental proposition of life insurance - financial protection in times of unfortunate events. These changes helped strengthen customer trust by laying emphasis on protecting their interests. In an industry where millions of people already entrust their life savings customer trust is a game changer.

As a sector, the life insurance industry has witnessed a complete business cycle of expansion in the initial years and a phase of consolidation, evaluation and rationalisation in the latter. The recent evolved regulatory framework has nudged life insurance players to think and constantly evaluate if they are ‘customer-ready.’

In our business, customer interface and service excellence are of prime importance. The benefits of a rich and seamless customer experience are aplenty. Given the low insurance penetration and large captive customer-base there is a need for a framework to redefine relationships and win-back customer confidence. It is our endeavor at BSLI to ensure trust surplus with all our stakeholders including customers, distributor, employees, and the communities that we live and operate in. Early in the relationship, we ensure that we acquire customers by selling right not only to fulfill a need, but a more specific outcome. We then provide them with superior customer experiences to forge and strengthen long-term relationships. At BSLI, we share a belief of partnering our customers through a lasting relationship across generations and life-stages.

Towards building our consumer centric business and delivering exactly what customers want, we have successfully adopted the following:

• Built a business model that is 'outside-in' to understand and appreciate the felt and unfelt needs of our customers

• Enhanced all touch-points to define and develop all our customer interactions

• Leveraged technology to enhance reach and engagement

Word of mouth remains the most powerful customer acquisition tool. Past experiences prove that quality speaks for itself and assures us repeat business. BSLI attained recognition as the 3rd most trusted life insurance brand in Brand Equity's Most Trusted Brands Survey 2013, making us one of the most trusted brand amongst all other private insurance players. We are grateful for the trust our customers have placed in us, and are committed to upholding this trust.

Customer centricity is our key driver! As an organization, we have not only earned faith of over two million policyholders, but also created value for our stakeholders. In FY14, the company registered a profit of 371 crores (FY13 – 542 crores).BSLI ranked No. 1 among private insurance players in Group Business sales with a market share growth from 15.85% in FY13 to 18.3% FY14. Our growing relationships stand testimony to our efforts at achieving profitability by creating superior value for our customers. We have identified various areas to strengthen our competitive and financial positions in the coming years which include achieving optimal capacities and better distribution management. Our focus has and will continue to remain on the customer value solutions that we can offer.

Given the changing dynamics of the business environment, in the past year we have had to reimagine processes across various

Annual Report 2013-14

2

functions to enhance capacity, productivity and sustainability. Products were redesigned in line with the new regulations. In line with our focus towards enhanced customer-centricity, we developed many tools to empower and aid our agency force in counseling our customers' basis their life-stage insurance requirements. Acquainting them with the nuances of the sector has started showing results, and I believe will go a long way in strengthening our business.

We assign utmost priority to listen, understand and respond to the needs of our customers. We have a cell for constant customer insights and have leveraged insights to turn them into action. We have enhanced technology, processes and the organization structure. Our deep understanding of customers' needs has enabled us to provide customized solutions that encompass elements of protection, milestone savings, wealth creation and other long term financial goals. Empower@Ease, our proprietary technology platform that focuses on creating a powerful buying experience through customer participation and personalization is a step in this direction. We have strived to ensure that technology does not limit personalized interface and are proud of a 100% face-to-face customer interface with all policy holders at the time of sale.

As a trusted partner and preferred choice of insurer for customers, we will continue to discover, learn and re-invent ourselves to understand their needs better and fuel this growing long-term customer facing business.

Warm Regards,

Pankaj RazdanManaging Director & Chief Executive Officer

Birla Sun Life Insurance

3

Mr. Kumar Mangalam Birla is the Chairman of the US$ 40 billion multinational Aditya Birla Group, which operates in 36 countries across six continents. Mr. Birla took over as Chairman of the Group in 1995. In the years that he has been at the helm of the Group, he has accelerated growth, built meritocracy and enhanced stakeholder value. From a turnover of US$ 2 billion in 1995, today the Group's revenues are at US$ 40 billion and its operations from 8 countries then, span 36 countries today. He has made 31 acquisitions in these 19 years in India and globally, the highest by an Indian multinational.

An iconic figure, Mr. Birla has held and continues to hold several key positions on various regulatory and professional Boards. An erstwhile Director on the Central Board of Directors of the Reserve Bank of India, he was Chairman of the Advisory Committee constituted by the Ministry of Company Affairs and also served on The Prime Minister of India's Advisory Council on Trade and Industry. Furthermore, as the Convener of the Prime Minister's Task Force on Administrative and Legal Simplifications, the extensive implementations made by him in his report have been implemented in totality. Mr. Birla also served as Chairman of SEBI's committee on Insider Trading which formulated Corporate Governance principles for Indian corporates.

He is on the National Council of the Confederation of Indian Industries and the Apex Advisory Council of the Associated Chamber of Commerce and Industry of India.

Mr. Birla has won recognition for his exemplary contribution to leadership processes and institutions/ systems building. A selective list includes recognition as the Economic Times' Business Leader of the Year Award in 2012-13 for the second time. The previous win was in 2003. He was awarded the flagship 'Entrepreneur of the Year, 2012 at the Forbes India Leadership Awards. The other accolades received by Mr. Birla feature NASSCOM's Global Business Leader Award (2012), CNBC TV 18's India Business Leader Award (2012) for Taking India Abroad, the CNN-IBN Indian of the Year 2010 – Business for being the most outstanding business person, among many others. He was chosen by the World Economic Forum as one of the Young Global Leaders and named a “Young Super Performer in the CEO Category” by Business Today.

A keen educationist, Mr. Birla is the Chancellor of the renowned Birla Institute of Technology & Science (BITS), with campuses in Pilani, Goa, Hyderabad and Dubai. He is a Director of the G. D. Birla Medical Research & Education Foundation.

A Commerce Graduate from Mumbai University, Mr. Birla is a Chartered Accountant. He earned an MBA from the London Business School, where he is also an Honorary Fellow and serves on the Asia Pacific Advisory Board.

Mr. Donald A. Stewart was Chief Executive Officer of Sun Life Financial Inc. until November, 2011. A native of Scotland, Don joined Sun Life in the United Kingdom in 1969 qualifying as a Fellow of the Institute of Actuaries before moving to Canada in 1972. Don served as Chief Information Officer, Chief Actuary and Chief Operating Officer prior to being named Chief Executive Officer in 1998. Don's leadership of Sun Life spanned a period of major change including a successful public listing in 2000, the acquisition of Clarica in 2002 and expansion in India and China over the ensuing decade. The Canadian Chamber of Commerce recognised him as the 2007 International Executive of the Year and the Canada-India Business Council presented Don with their inaugural Lifetime Achievement Award in 2011.

Don continues to work fulltime on a broad range of international business activities with a primary focus on financial services. He chairs Sun Life Assurance Company of Canada (UK) and the Audit Committee of leading aluminum products company Novelis, based in Atlanta. He is also chair of the federal-provincial Nominating Committee of the Canada Pension Plan Investment Board. He is a board member of Sun Life Everbright, based in Beijing and Birla Sun Life Asset Management Company Ltd. in Mumbai. In 2009, Don was appointed the Chairman of Canada's Task Force on Financial Literacy which delivered its final recommendations on time and within budget by December 31, 2010. He was named as Champion of Public Education in 2011 by The Learning Partnership and remains active with a wide range of constituencies in support of Canadian financial literacy.”

Mr. Donald A. StewartNon-Executive Director

Mr. Kumar Mangalam BirlaChairman

Board of Directors

Page 5: BSLI AR _15th cut

Message from the MD & CEO

Dear Shareholders,

Financial year 2014 has been a defining year in the Indian life insurance industry. The industry adapted to multiple changes that reinforced the fundamental proposition of life insurance - financial protection in times of unfortunate events. These changes helped strengthen customer trust by laying emphasis on protecting their interests. In an industry where millions of people already entrust their life savings customer trust is a game changer.

As a sector, the life insurance industry has witnessed a complete business cycle of expansion in the initial years and a phase of consolidation, evaluation and rationalisation in the latter. The recent evolved regulatory framework has nudged life insurance players to think and constantly evaluate if they are ‘customer-ready.’

In our business, customer interface and service excellence are of prime importance. The benefits of a rich and seamless customer experience are aplenty. Given the low insurance penetration and large captive customer-base there is a need for a framework to redefine relationships and win-back customer confidence. It is our endeavor at BSLI to ensure trust surplus with all our stakeholders including customers, distributor, employees, and the communities that we live and operate in. Early in the relationship, we ensure that we acquire customers by selling right not only to fulfill a need, but a more specific outcome. We then provide them with superior customer experiences to forge and strengthen long-term relationships. At BSLI, we share a belief of partnering our customers through a lasting relationship across generations and life-stages.

Towards building our consumer centric business and delivering exactly what customers want, we have successfully adopted the following:

• Built a business model that is 'outside-in' to understand and appreciate the felt and unfelt needs of our customers

• Enhanced all touch-points to define and develop all our customer interactions

• Leveraged technology to enhance reach and engagement

Word of mouth remains the most powerful customer acquisition tool. Past experiences prove that quality speaks for itself and assures us repeat business. BSLI attained recognition as the 3rd most trusted life insurance brand in Brand Equity's Most Trusted Brands Survey 2013, making us one of the most trusted brand amongst all other private insurance players. We are grateful for the trust our customers have placed in us, and are committed to upholding this trust.

Customer centricity is our key driver! As an organization, we have not only earned faith of over two million policyholders, but also created value for our stakeholders. In FY14, the company registered a profit of 371 crores (FY13 – 542 crores).BSLI ranked No. 1 among private insurance players in Group Business sales with a market share growth from 15.85% in FY13 to 18.3% FY14. Our growing relationships stand testimony to our efforts at achieving profitability by creating superior value for our customers. We have identified various areas to strengthen our competitive and financial positions in the coming years which include achieving optimal capacities and better distribution management. Our focus has and will continue to remain on the customer value solutions that we can offer.

Given the changing dynamics of the business environment, in the past year we have had to reimagine processes across various

Annual Report 2013-14

2

functions to enhance capacity, productivity and sustainability. Products were redesigned in line with the new regulations. In line with our focus towards enhanced customer-centricity, we developed many tools to empower and aid our agency force in counseling our customers' basis their life-stage insurance requirements. Acquainting them with the nuances of the sector has started showing results, and I believe will go a long way in strengthening our business.

We assign utmost priority to listen, understand and respond to the needs of our customers. We have a cell for constant customer insights and have leveraged insights to turn them into action. We have enhanced technology, processes and the organization structure. Our deep understanding of customers' needs has enabled us to provide customized solutions that encompass elements of protection, milestone savings, wealth creation and other long term financial goals. Empower@Ease, our proprietary technology platform that focuses on creating a powerful buying experience through customer participation and personalization is a step in this direction. We have strived to ensure that technology does not limit personalized interface and are proud of a 100% face-to-face customer interface with all policy holders at the time of sale.

As a trusted partner and preferred choice of insurer for customers, we will continue to discover, learn and re-invent ourselves to understand their needs better and fuel this growing long-term customer facing business.

Warm Regards,

Pankaj RazdanManaging Director & Chief Executive Officer

Birla Sun Life Insurance

3

Mr. Kumar Mangalam Birla is the Chairman of the US$ 40 billion multinational Aditya Birla Group, which operates in 36 countries across six continents. Mr. Birla took over as Chairman of the Group in 1995. In the years that he has been at the helm of the Group, he has accelerated growth, built meritocracy and enhanced stakeholder value. From a turnover of US$ 2 billion in 1995, today the Group's revenues are at US$ 40 billion and its operations from 8 countries then, span 36 countries today. He has made 31 acquisitions in these 19 years in India and globally, the highest by an Indian multinational.

An iconic figure, Mr. Birla has held and continues to hold several key positions on various regulatory and professional Boards. An erstwhile Director on the Central Board of Directors of the Reserve Bank of India, he was Chairman of the Advisory Committee constituted by the Ministry of Company Affairs and also served on The Prime Minister of India's Advisory Council on Trade and Industry. Furthermore, as the Convener of the Prime Minister's Task Force on Administrative and Legal Simplifications, the extensive implementations made by him in his report have been implemented in totality. Mr. Birla also served as Chairman of SEBI's committee on Insider Trading which formulated Corporate Governance principles for Indian corporates.

He is on the National Council of the Confederation of Indian Industries and the Apex Advisory Council of the Associated Chamber of Commerce and Industry of India.

Mr. Birla has won recognition for his exemplary contribution to leadership processes and institutions/ systems building. A selective list includes recognition as the Economic Times' Business Leader of the Year Award in 2012-13 for the second time. The previous win was in 2003. He was awarded the flagship 'Entrepreneur of the Year, 2012 at the Forbes India Leadership Awards. The other accolades received by Mr. Birla feature NASSCOM's Global Business Leader Award (2012), CNBC TV 18's India Business Leader Award (2012) for Taking India Abroad, the CNN-IBN Indian of the Year 2010 – Business for being the most outstanding business person, among many others. He was chosen by the World Economic Forum as one of the Young Global Leaders and named a “Young Super Performer in the CEO Category” by Business Today.

A keen educationist, Mr. Birla is the Chancellor of the renowned Birla Institute of Technology & Science (BITS), with campuses in Pilani, Goa, Hyderabad and Dubai. He is a Director of the G. D. Birla Medical Research & Education Foundation.

A Commerce Graduate from Mumbai University, Mr. Birla is a Chartered Accountant. He earned an MBA from the London Business School, where he is also an Honorary Fellow and serves on the Asia Pacific Advisory Board.

Mr. Donald A. Stewart was Chief Executive Officer of Sun Life Financial Inc. until November, 2011. A native of Scotland, Don joined Sun Life in the United Kingdom in 1969 qualifying as a Fellow of the Institute of Actuaries before moving to Canada in 1972. Don served as Chief Information Officer, Chief Actuary and Chief Operating Officer prior to being named Chief Executive Officer in 1998. Don's leadership of Sun Life spanned a period of major change including a successful public listing in 2000, the acquisition of Clarica in 2002 and expansion in India and China over the ensuing decade. The Canadian Chamber of Commerce recognised him as the 2007 International Executive of the Year and the Canada-India Business Council presented Don with their inaugural Lifetime Achievement Award in 2011.

Don continues to work fulltime on a broad range of international business activities with a primary focus on financial services. He chairs Sun Life Assurance Company of Canada (UK) and the Audit Committee of leading aluminum products company Novelis, based in Atlanta. He is also chair of the federal-provincial Nominating Committee of the Canada Pension Plan Investment Board. He is a board member of Sun Life Everbright, based in Beijing and Birla Sun Life Asset Management Company Ltd. in Mumbai. In 2009, Don was appointed the Chairman of Canada's Task Force on Financial Literacy which delivered its final recommendations on time and within budget by December 31, 2010. He was named as Champion of Public Education in 2011 by The Learning Partnership and remains active with a wide range of constituencies in support of Canadian financial literacy.”

Mr. Donald A. StewartNon-Executive Director

Mr. Kumar Mangalam BirlaChairman

Mr. Kumar Mangalam BirlaChairman

Board of Directors

Page 6: BSLI AR _15th cut

Board of Directors

Annual Report 2013-14

4

Ajay Srinivasan has been the Chief Executive, Financial Services at the Aditya Birla Group since July 2007.

In his role as Chief Executive, Financial Services, he sets the vision and provides strategic direction and leadership for the Group's Financial Services business which covers several verticals such as Life Insurance, Fund Management, Private Equity, Wealth Management, Retail Broking, Capital Markets Based Lending, Corporate Financing, Infrastructure Finance and General Insurance Broking. Under his leadership the financial services business has grown rapidly with a turnover of USD 1.3 Bn, over 5.6 million customers and a workforce of over 17,500 people.

Prior to joining the Aditya Birla Group, Ajay was Chief Executive, Fund Management at Prudential Corporation Asia, based in Hong Kong. Under Ajay's leadership, Prudential's Fund Management operations in Asia grew rapidly, both organically and through acquisition. Ajay oversaw a business that spanned ten markets, including Japan, with total funds under management of about USD 70 Bn, which made it at the time the second largest retail fund manager in Asia.

As a member of Prudential Corporation Asia's Board of Directors, Ajay also oversaw the development of Prudential's retirement business in Asia.

Ajay joined Prudential in 1998 as Managing Director of Prudential ICICI Asset Management Company, Prudential's Indian fund management joint venture with ICICI Bank. Within two years of operation, Prudential ICICI AMC had grown to become the largest private sector asset management company in India.

With a proven track record for building successful businesses, his experience in the financial services industry spans over two decades.

Ajay has in his financial career engaged with several bodies including the Financial Planning Standards Board, the CII Committee on Financial Sector Reforms, The CII Committee of Financial Inclusion, The CII Committee on Insurance and Pensions and the FICCI Committee on Insurance.

Ajay holds a BA with Honours in Economics from St Stephens College, University of Delhi and an MBA from the Indian Institute of Management, Ahmedabad.

Mr. Ajay SrinivasanNon-Executive Director

Mr. Bishwanath PuranmalkaNon-Executive Director

Mr. Puranmalka, Director of Aditya Birla Group's Financial Services' Companies has a total working experience of over 45 years. He has been associated with the Aditya Birla Group in various capacities since the inception of his career. He has experience in the implementation and running of several manufacturing, training and service industry businesses, and setting up Greenfield manufacturing operations. He also has wide experience in the set up and operation and maintenance of captive Power Plants of the Aditya Birla Group.

He has been looking after a NBFC - Birla Global Finance Co. Ltd. now known as Aditya Birla Finance Ltd., since June 1994.Mr. Puranmalka has been a Director on the Board and a Member of Audit Committees of Financial Services like Life Insurance Company, Distribution Company and Trustee of Birla Sun Life Asset Management Company Ltd.

Birla Sun Life Insurance

5

Kevin Strain is President, Sun Life Financial Asia. In this role, Mr. Strain is responsible for Sun Life's interests in Asia, including identifying opportunities for growth in the region and managing the Company's relationships with its partners. Sun Life has operated in Asia since the 1890s, and today spans seven key markets – the Philippines, Hong Kong, Indonesia, India, China, Vietnam and Malaysia. Mr. Strain was appointed to the role effective April 2012, and is based in Sun Life's Asia Regional Office in Hong Kong. He is also a member of the Company's Executive Team. Mr. Strain has significant Insurance and leadership experience in both individual and group businesses and in managing Finance functions. From 2007 to 2012, he was Senior Vice-President of Sun Life's Individual Insurance and Investments division in Canada, responsible for the creation and delivery of Insurance, Health and Wealth Management Products and Solutions nationwide. This included managing an expansive distribution organization encompassing Sun Life's career sales force, the largest in Canada, and Third-party distributors. In earlier roles, Mr. Strain was Vice-President of Investor Relations in Sun Life's corporate office and held senior finance positions in the Company's Canadian operations. He joined Sun Life in 2002 as part of its acquisition of the Clarica Life Insurance Company, where he had served in finance and customer-focused roles before being appointed head of Clarica's Canadian pension and group savings division.

Mr. Strain is a Chartered Accountant and holds a Master of Accounting degree from the University of Waterloo in Canada. He serves on the Advisory Council for the University's School of Accounting and Finance.

Mr. Kevin StrainNon-Executive Director

Dr. Rakesh JainNon-Executive Director

Dr. Rakesh Jain is Managing Director of Aditya Birla Group's flagship company Aditya Birla Nuvo Ltd (ABNL). ABNL is a diversified conglomerate with multiple businesses in the services and manufacturing sectors. The businesses range from Financial Services to Telecom, IT-ITES to Fashion and Lifestyle, and Manufacturing. While ABNL has multiple mature businesses, it continues to incubate new growth and long-gestating businesses for the Aditya Birla Group. In addition to the above role as Managing Director, w.e.f. 1st January 2013, he is Sector Head of Chemicals & International Trading Businesses

Dr. Jain joined the Aditya Birla Group in August 2003 as Managing Director of Indo Gulf Fertilisers Ltd, (since merged with ABNL in 2006), and Director of the Aditya Birla Group's overseas chemical business and World Class Manufacturing. In March 2005, he was given the additional responsibility of Global CEO for the Carbon Black Business, which has grown strategically from a regional business to a global business. In December 2008, Dr. Jain was appointed Joint Managing Director of ABNL and subsequently Managing Director in July 2009. He is also Director of Group IT and a Director on the board of the Aditya Birla Management Corporation Private Limited. Prior to joining the Aditya Birla Group, he was the President and CEO of GE Plastics India and South Asia since June 2001.

In 1988, Dr. Jain joined the Advanced Technology Group at GE Plastic's Electromaterials Division (EMD) in Coshocton, OH, USA. He served in a variety of leadership roles in Technology, Manufacturing, Product Management and Audit staff at various GE businesses. He led GE Plastics-Huntsman JV at Albany, NY in 1995-1996, and was appointed the Business Six Sigma Leader in 1997. In January 1999, he was transferred to BOZ, Netherlands, to lead global manufacturing processes for GE Plastics where he led the stable operations concept to stretch the capacity without investment and significantly reduce the cost per unit. In 2000, he spearheaded the digitization effort at GE which helped provide real-time business data transparency and significant reduction in backroom activities and paperwork.

Dr. Jain completed his M.Tech from IIT Kharagpur and Ph.D. in Polymer Science and Engineering from the University of Akron and Ohio State University.

Page 7: BSLI AR _15th cut

Board of Directors

Annual Report 2013-14

4

Ajay Srinivasan has been the Chief Executive, Financial Services at the Aditya Birla Group since July 2007.

In his role as Chief Executive, Financial Services, he sets the vision and provides strategic direction and leadership for the Group's Financial Services business which covers several verticals such as Life Insurance, Fund Management, Private Equity, Wealth Management, Retail Broking, Capital Markets Based Lending, Corporate Financing, Infrastructure Finance and General Insurance Broking. Under his leadership the financial services business has grown rapidly with a turnover of USD 1.3 Bn, over 5.6 million customers and a workforce of over 17,500 people.

Prior to joining the Aditya Birla Group, Ajay was Chief Executive, Fund Management at Prudential Corporation Asia, based in Hong Kong. Under Ajay's leadership, Prudential's Fund Management operations in Asia grew rapidly, both organically and through acquisition. Ajay oversaw a business that spanned ten markets, including Japan, with total funds under management of about USD 70 Bn, which made it at the time the second largest retail fund manager in Asia.

As a member of Prudential Corporation Asia's Board of Directors, Ajay also oversaw the development of Prudential's retirement business in Asia.

Ajay joined Prudential in 1998 as Managing Director of Prudential ICICI Asset Management Company, Prudential's Indian fund management joint venture with ICICI Bank. Within two years of operation, Prudential ICICI AMC had grown to become the largest private sector asset management company in India.

With a proven track record for building successful businesses, his experience in the financial services industry spans over two decades.

Ajay has in his financial career engaged with several bodies including the Financial Planning Standards Board, the CII Committee on Financial Sector Reforms, The CII Committee of Financial Inclusion, The CII Committee on Insurance and Pensions and the FICCI Committee on Insurance.

Ajay holds a BA with Honours in Economics from St Stephens College, University of Delhi and an MBA from the Indian Institute of Management, Ahmedabad.

Mr. Ajay SrinivasanNon-Executive Director

Mr. Bishwanath PuranmalkaNon-Executive Director

Mr. Puranmalka, Director of Aditya Birla Group's Financial Services' Companies has a total working experience of over 45 years. He has been associated with the Aditya Birla Group in various capacities since the inception of his career. He has experience in the implementation and running of several manufacturing, training and service industry businesses, and setting up Greenfield manufacturing operations. He also has wide experience in the set up and operation and maintenance of captive Power Plants of the Aditya Birla Group.

He has been looking after a NBFC - Birla Global Finance Co. Ltd. now known as Aditya Birla Finance Ltd., since June 1994.Mr. Puranmalka has been a Director on the Board and a Member of Audit Committees of Financial Services like Life Insurance Company, Distribution Company and Trustee of Birla Sun Life Asset Management Company Ltd.

Birla Sun Life Insurance

5

Kevin Strain is President, Sun Life Financial Asia. In this role, Mr. Strain is responsible for Sun Life's interests in Asia, including identifying opportunities for growth in the region and managing the Company's relationships with its partners. Sun Life has operated in Asia since the 1890s, and today spans seven key markets – the Philippines, Hong Kong, Indonesia, India, China, Vietnam and Malaysia. Mr. Strain was appointed to the role effective April 2012, and is based in Sun Life's Asia Regional Office in Hong Kong. He is also a member of the Company's Executive Team. Mr. Strain has significant Insurance and leadership experience in both individual and group businesses and in managing Finance functions. From 2007 to 2012, he was Senior Vice-President of Sun Life's Individual Insurance and Investments division in Canada, responsible for the creation and delivery of Insurance, Health and Wealth Management Products and Solutions nationwide. This included managing an expansive distribution organization encompassing Sun Life's career sales force, the largest in Canada, and Third-party distributors. In earlier roles, Mr. Strain was Vice-President of Investor Relations in Sun Life's corporate office and held senior finance positions in the Company's Canadian operations. He joined Sun Life in 2002 as part of its acquisition of the Clarica Life Insurance Company, where he had served in finance and customer-focused roles before being appointed head of Clarica's Canadian pension and group savings division.

Mr. Strain is a Chartered Accountant and holds a Master of Accounting degree from the University of Waterloo in Canada. He serves on the Advisory Council for the University's School of Accounting and Finance.

Mr. Kevin StrainNon-Executive Director

Dr. Rakesh JainNon-Executive Director

Dr. Rakesh Jain is Managing Director of Aditya Birla Group's flagship company Aditya Birla Nuvo Ltd (ABNL). ABNL is a diversified conglomerate with multiple businesses in the services and manufacturing sectors. The businesses range from Financial Services to Telecom, IT-ITES to Fashion and Lifestyle, and Manufacturing. While ABNL has multiple mature businesses, it continues to incubate new growth and long-gestating businesses for the Aditya Birla Group. In addition to the above role as Managing Director, w.e.f. 1st January 2013, he is Sector Head of Chemicals & International Trading Businesses

Dr. Jain joined the Aditya Birla Group in August 2003 as Managing Director of Indo Gulf Fertilisers Ltd, (since merged with ABNL in 2006), and Director of the Aditya Birla Group's overseas chemical business and World Class Manufacturing. In March 2005, he was given the additional responsibility of Global CEO for the Carbon Black Business, which has grown strategically from a regional business to a global business. In December 2008, Dr. Jain was appointed Joint Managing Director of ABNL and subsequently Managing Director in July 2009. He is also Director of Group IT and a Director on the board of the Aditya Birla Management Corporation Private Limited. Prior to joining the Aditya Birla Group, he was the President and CEO of GE Plastics India and South Asia since June 2001.

In 1988, Dr. Jain joined the Advanced Technology Group at GE Plastic's Electromaterials Division (EMD) in Coshocton, OH, USA. He served in a variety of leadership roles in Technology, Manufacturing, Product Management and Audit staff at various GE businesses. He led GE Plastics-Huntsman JV at Albany, NY in 1995-1996, and was appointed the Business Six Sigma Leader in 1997. In January 1999, he was transferred to BOZ, Netherlands, to lead global manufacturing processes for GE Plastics where he led the stable operations concept to stretch the capacity without investment and significantly reduce the cost per unit. In 2000, he spearheaded the digitization effort at GE which helped provide real-time business data transparency and significant reduction in backroom activities and paperwork.

Dr. Jain completed his M.Tech from IIT Kharagpur and Ph.D. in Polymer Science and Engineering from the University of Akron and Ohio State University.

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6

Board of Directors

Mr. Pankaj RazdanManaging Director &

Chief Executive Officer

Pankaj Razdan’s is the MD & Chief Executive Officer at Birla Sun Life Insurance (BSLI). He has rich experience in the financial services business, across various functions and multiple lines of business. He has been with the Aditya Birla Financial Services Group (ABFSG) since 2007, as a co-owner of the ABFSG Vision and the Deputy Chief Executive – Financial Services, a position he continues to hold. At ABFSG, Pankaj has steered some of the key financial services verticals successfully despite the challenging times. He has guided Birla Sun Life Asset Management Company to an industry leadership position. He has also driven many key projects across ABFSG, to help set a foundation for our leadership in the Indian financial services industry.

In his role at Birla Sun Life Insurance, Pankaj provides BSLI strategic direction and leads the insurance team towards achieving rapid growth and profitability. As BSLI gears for its next phase of growth, the Company will benefit from his experience and expertise in growing businesses, developing new business models, building distribution efficiency and customer management.

Pankaj's professional experience spans organisations including the Karvy Group and ICICI Prudential Asset Management Company. He has been a recipient of several personal and professional recognitions including being recognised as ‘India's Hottest Young Executives’ by Business Today. He holds a degree in electronics engineering with the experience of multiple management development programs from illustrious institutes including the Indian Institute of Management, Ahmedabad.

Mr. M. V. Nair is the Chairman, Credit Information Bureau (India) Ltd. He is also Non Executive Chairman of SWIFT Domestic Services Pvt Ltd., a joint venture between SWIFT Scrl, a global provider of secure financial messaging services and seven Indian Banks.

Prior to this; he was CMD, Union Bank of India and Dena Bank.

He was also Chairman of the Indian Banks Association, Chairman of the Governing Board of Institute of Banking Personnel Selection, Chairman of the Managing Committee of Indian Institute of Banking and Finance, a member of the Governing Council of IDRBT as well as the member of the Governing Council of National Institute of Bank Management.

He was the Chairman of the Committee set up by the RBI to suggest revised guidelines for Priority Sector Lending Classification. He was the member of UshaThorat committee on Lead Bank Scheme, Damodaran Committee on Customer Service in Banks and Khandelwal Committee on Human Resources issues of Public Sector Banks.

Mr. M.V. NairIndependent Director

Mr. Gian Prakash Gupta is former Chairman & Managing Director (CMD) of Industrial Development Bank of India. He was also the Chairman of Unit Trust of India. Mr. Gupta specialises in the field of General Management, Financial Management, Banking, and Industrial & Financial Restructuring. He is a Director on the Boards of many reputed corporates including Aditya Birla Nuvo Limited , Aditya Birla Capital Advisors Private Limited , Idea Cellular Limited etc. He is chairman in Swaraj Engine Limited and Emkay Global Financial Services Limited. He is also Audit committee member on many reputed Corporates.

Mr. Gian P. GuptaIndependent Director

Birla Sun Life Insurance

7

Ms. Tarjani VakilIndependent Director

With over four decades of experience in development banking, Ms. Vakil has held directorship of several renowned public sector companies. Ms. Vakil started her career with Maharashtra State Finance Corporation (MSFC) in 1958 and assumed several responsibilities till 1965. She moved from MSFC to join Industrial Development Bank of India (IDBI) in 1965. After an illustrious seventeen years stint at IDBI in the capacity of a Deputy General Manager, she joined EXIM Bank of India as General Manager in 1982. After a long, distinguished tenure of 16 years in EXIM Banks, she retired as Chairman and Managing Director (CMD) in 1996. Post her retirement; she is now a member of the several Boards and sub Committees of the Board of various companies.

Mr. Venkatesh MysoreNon-Executive Director

Venky Mysore is the CEO of Red Chillies Entertainment Pvt Ltd as well as the CEO & MD of Kolkata Knight Riders.

He took over as the CEO & MD of KKR in October 2010. Prior to that he has had a very long and successful career spanning 25 years in financial services

He was the India Country Head of Sun Life Financial's India operations from January 2007 to October 2010. Prior to this, Mr. Mysore was the CEO & Managing Director of MetLife India. He was responsible for the start-up of the India venture. Mr. Mysore spent over 21 years with MetLife from 1985-2006. He immigrated to the U.S.A. in 1985 and started his career with MetLife after his MBA

Mr. Mysore represented the Madras University in cricket and has been a passionate follower of the game.

He is currently a member of the Young Presidents Organisation – Mumbai Chapter.

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6

Board of Directors

Mr. Pankaj RazdanManaging Director &

Chief Executive Officer

Pankaj Razdan’s is the MD & Chief Executive Officer at Birla Sun Life Insurance (BSLI). He has rich experience in the financial services business, across various functions and multiple lines of business. He has been with the Aditya Birla Financial Services Group (ABFSG) since 2007, as a co-owner of the ABFSG Vision and the Deputy Chief Executive – Financial Services, a position he continues to hold. At ABFSG, Pankaj has steered some of the key financial services verticals successfully despite the challenging times. He has guided Birla Sun Life Asset Management Company to an industry leadership position. He has also driven many key projects across ABFSG, to help set a foundation for our leadership in the Indian financial services industry.

In his role at Birla Sun Life Insurance, Pankaj provides BSLI strategic direction and leads the insurance team towards achieving rapid growth and profitability. As BSLI gears for its next phase of growth, the Company will benefit from his experience and expertise in growing businesses, developing new business models, building distribution efficiency and customer management.

Pankaj's professional experience spans organisations including the Karvy Group and ICICI Prudential Asset Management Company. He has been a recipient of several personal and professional recognitions including being recognised as ‘India's Hottest Young Executives’ by Business Today. He holds a degree in electronics engineering with the experience of multiple management development programs from illustrious institutes including the Indian Institute of Management, Ahmedabad.

Mr. Pankaj RazdanManaging Director &

Chief Executive Officer

Mr. M. V. Nair is the Chairman, Credit Information Bureau (India) Ltd. He is also Non Executive Chairman of SWIFT Domestic Services Pvt Ltd., a joint venture between SWIFT Scrl, a global provider of secure financial messaging services and seven Indian Banks.

Prior to this; he was CMD, Union Bank of India and Dena Bank.

He was also Chairman of the Indian Banks Association, Chairman of the Governing Board of Institute of Banking Personnel Selection, Chairman of the Managing Committee of Indian Institute of Banking and Finance, a member of the Governing Council of IDRBT as well as the member of the Governing Council of National Institute of Bank Management.

He was the Chairman of the Committee set up by the RBI to suggest revised guidelines for Priority Sector Lending Classification. He was the member of UshaThorat committee on Lead Bank Scheme, Damodaran Committee on Customer Service in Banks and Khandelwal Committee on Human Resources issues of Public Sector Banks.

Mr. M.V. NairIndependent Director

Mr. Gian Prakash Gupta is former Chairman & Managing Director (CMD) of Industrial Development Bank of India. He was also the Chairman of Unit Trust of India. Mr. Gupta specialises in the field of General Management, Financial Management, Banking, and Industrial & Financial Restructuring. He is a Director on the Boards of many reputed corporates including Aditya Birla Nuvo Limited , Aditya Birla Capital Advisors Private Limited , Idea Cellular Limited etc. He is chairman in Swaraj Engine Limited and Emkay Global Financial Services Limited. He is also Audit committee member on many reputed Corporates.

Mr. Gian P. GuptaIndependent Director

Birla Sun Life Insurance

7

Ms. Tarjani VakilIndependent Director

With over four decades of experience in development banking, Ms. Vakil has held directorship of several renowned public sector companies. Ms. Vakil started her career with Maharashtra State Finance Corporation (MSFC) in 1958 and assumed several responsibilities till 1965. She moved from MSFC to join Industrial Development Bank of India (IDBI) in 1965. After an illustrious seventeen years stint at IDBI in the capacity of a Deputy General Manager, she joined EXIM Bank of India as General Manager in 1982. After a long, distinguished tenure of 16 years in EXIM Banks, she retired as Chairman and Managing Director (CMD) in 1996. Post her retirement; she is now a member of the several Boards and sub Committees of the Board of various companies.

Mr. Venkatesh MysoreNon-Executive Director

Venky Mysore is the CEO of Red Chillies Entertainment Pvt Ltd as well as the CEO & MD of Kolkata Knight Riders.

He took over as the CEO & MD of KKR in October 2010. Prior to that he has had a very long and successful career spanning 25 years in financial services

He was the India Country Head of Sun Life Financial's India operations from January 2007 to October 2010. Prior to this, Mr. Mysore was the CEO & Managing Director of MetLife India. He was responsible for the start-up of the India venture. Mr. Mysore spent over 21 years with MetLife from 1985-2006. He immigrated to the U.S.A. in 1985 and started his career with MetLife after his MBA

Mr. Mysore represented the Madras University in cricket and has been a passionate follower of the game.

He is currently a member of the Young Presidents Organisation – Mumbai Chapter.

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Senior Management Team

Birla Sun Life Insurance

9

Mr. Mayank Bathwal Deputy Chief Executive Officer

Mr. Mayank Bathwal is the Deputy Chief Executive Officer at BSLI. In this role, he partners the CEO and the leadership team in managing the affairs of the company. He oversees the Finance, Planning, IT, Operations, Strategy, Group business and Investment functions and also provides leadership to some very important areas of the Company including Revenue Assurance, Customer Service, Technology enablement and Operational efficiency.

Mayank has rich experience of nearly 20 years in the industry. He joined the Aditya Birla Group in early 1994 and has worked closely in various units and projects of the group including fertilizer and copper smelting units, financial services business and power projects.

He joined Birla Sun Life Insurance in December 1999 as part of the Project team to set up the Life Insurance venture and was looking after the Business Strategy and Planning function prior to taking charge of other Finance Operations of the company. Mayank then moved to take charge as the Chief Financial Officer of Sun Life, Indonesia in June 2006. He moved back to India in June 2007 as CFO at BSLI with the objective of supporting BSLI in its transformational phase after his yearlong successful stint in Indonesia. As the CFO & Head of Institutional Sales in FY 2011, in addition to the Finance operations he also took charge of the Institutional Sales teams which included Bancassurance, Corporate Agency & Broking channels of BSLI.

Mayank is a Fellow member of the Institute of Chartered Accountants of India and the Institute of Cost & Works Accountants of India and an Associate Member of the Institute of Company Secretaries of India. Mayank was also felicitated at Annual CFO100 Roll of Honour (for the years 2012 and 2013) for his exceptional contribution to the area of Corporate Finance.

Mayank is also a member of CII CFO/Tax Committee and ICC Expert committee on Banking, Finance and Insurance.

Mr. Mayank Bathwal Deputy Chief Executive Officer

Mr. Amit Jain Chief Financial Officer (CFO)

Mr. Amit Jain is Chief Financial Officer (CFO) at BSLI overseeing the Finance, Accounts and Taxation functions. He holds a Master's degree in Business Administration from the Faculty of Management Studies (FMS), Delhi and a Bachelor's degree in Mechanical Engineering from Delhi University.

Amit brings two decades of experience in Finance, Planning and Strategy. He has spent close to 10 years in BSLI. His sharp business acumen has lent immense success to the Planning and Finance functions that he has spearheaded.

His professional experience spans organizations including IDBI Federal Life Insurance, Max India Ltd., CARE Ratings among others.

Mr. Pramod Krishnamurthy Chief Technology Officer (CTO)

Mr. Pramod Krishnamurthy is the Chief Technology Officer (CTO) for BSLI responsible for providing the crucial technology edge to enable BSLI to differentiate itself positively in the marketplace.

Pramod is an IIT-IIM graduate and has over 22 years of work experience in the Financial Services Technology area. He has held several senior leadership positions in the IT and Financial Services Industry, including running his own software company early in his career. Prior to joining BSLI, Pramod was an Executive Vice President with Fullerton India Credit.

He was awarded the prestigious Pan-Asia IT Leadership Award for 2012 by Asia Insurance Review and Celent, for defining and implementing the technology strategy and roadmap for BSLI. He was also recognized among the Top 100 CIOs in India for 2011, by his peer group under the aegis of World CIO Council and CIO Association of India.

Mr. Anil Kumar Singh Chief Actuarial Officer (CAO)

Mr. Anil Kumar Singh is the Chief Actuarial Officer & Appointed Actuary for Birla Sun Life Insurance (BSLI) and is responsible for all Actuarial functions within the Company. Anil is a Fellow of the Institute of Actuaries of India, 2002 and holds a Masters in Statistics from Lucknow University.

Before joining BSLI, Anil was the Chief Actuary & Appointed Actuary at Bajaj Allianz Life Insurance Company. Anil has vast experience of close to 20 years in the Life Insurance industry in India, in Actuarial roles covering Valuation, Asset Liability Management, Product Development and Pricing with organizations like LIC, Aviva Life Insurance and was also a part of the BSLI Actuarial team during its inception in 2000-2001.

Mr. Lalit VermaniChief Legal Compliance &

Risk Officer (CLCRO)

Mr. Lalit Vermani is Chief Legal, Compliance and Risk Officer heading the Compliance, Legal, Risk and Internal Audit functions for the Company. He has 20 years of experience in various areas of Financial Services including Insurance, Asset Management and Investment banking. Prior to this assignment, Lalit was heading the Compliance function at Birla Sun Life AMC Ltd.

Lalit holds an Honours Degree in Economics and MBA with specialization in Finance. He is also a certified Financial Risk Manager (FRM) by Global Association of Risk Professionals.

Mr. Sashi Krishnan Chief Investment Officer (CIO)

Mr. Sashi Krishnan is the Chief Investment Officer (CIO) of Birla Sun Life Insurance. He joined the organization in December 2011 and has a rich experience of over 25 years in the Mutual Fund and Life Insurance industry.

Sashi has done his BE (Hons.) in Chemical Engineering and MSc (Hons.) in Economics from BITS, Pilani. He also has a Diploma in Management from IGNOU with a specialization in Finance. In addition, he has also done CAIIB from the Indian Institute of Bankers. He has an extensive experience in Equity and Debt Markets. Prior to joining BSLI, Sashi was the Chief Investment Officer at Bajaj Allianz Life Insurance Company where he managed Assets over Rs. 42,000 crores Besides leading the Investments team and being a member of the Investment Committee, he was also involved in product design and provided sales support. His previous assignments include leadership roles with DBS Bank (Singapore), DBS Cholamandalam Asset Management Ltd. and Unit Trust of India. Sashi is the Member of the Index Policy Committee of India Index Services & Products Ltd. and, also was the Co Chair of Life Insurance Committee of the Bombay Chamber of Commerce and Industry.

He has also served as the Member of the Financial Planning Standards Board, India in 2004-2006. He is also a member of the Capital Markets Committee of the Indian Merchants Chamber.

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8

Senior Management Team

Birla Sun Life Insurance

9

Mr. Mayank Bathwal Deputy Chief Executive Officer

Mr. Mayank Bathwal is the Deputy Chief Executive Officer at BSLI. In this role, he partners the CEO and the leadership team in managing the affairs of the company. He oversees the Finance, Planning, IT, Operations, Strategy, Group business and Investment functions and also provides leadership to some very important areas of the Company including Revenue Assurance, Customer Service, Technology enablement and Operational efficiency.

Mayank has rich experience of nearly 20 years in the industry. He joined the Aditya Birla Group in early 1994 and has worked closely in various units and projects of the group including fertilizer and copper smelting units, financial services business and power projects.

He joined Birla Sun Life Insurance in December 1999 as part of the Project team to set up the Life Insurance venture and was looking after the Business Strategy and Planning function prior to taking charge of other Finance Operations of the company. Mayank then moved to take charge as the Chief Financial Officer of Sun Life, Indonesia in June 2006. He moved back to India in June 2007 as CFO at BSLI with the objective of supporting BSLI in its transformational phase after his yearlong successful stint in Indonesia. As the CFO & Head of Institutional Sales in FY 2011, in addition to the Finance operations he also took charge of the Institutional Sales teams which included Bancassurance, Corporate Agency & Broking channels of BSLI.

Mayank is a Fellow member of the Institute of Chartered Accountants of India and the Institute of Cost & Works Accountants of India and an Associate Member of the Institute of Company Secretaries of India. Mayank was also felicitated at Annual CFO100 Roll of Honour (for the years 2012 and 2013) for his exceptional contribution to the area of Corporate Finance.

Mayank is also a member of CII CFO/Tax Committee and ICC Expert committee on Banking, Finance and Insurance.

Mr. Amit Jain Chief Financial Officer (CFO)

Mr. Amit Jain is Chief Financial Officer (CFO) at BSLI overseeing the Finance, Accounts and Taxation functions. He holds a Master's degree in Business Administration from the Faculty of Management Studies (FMS), Delhi and a Bachelor's degree in Mechanical Engineering from Delhi University.

Amit brings two decades of experience in Finance, Planning and Strategy. He has spent close to 10 years in BSLI. His sharp business acumen has lent immense success to the Planning and Finance functions that he has spearheaded.

His professional experience spans organizations including IDBI Federal Life Insurance, Max India Ltd., CARE Ratings among others.

Mr. Pramod Krishnamurthy Chief Technology Officer (CTO)

Mr. Pramod Krishnamurthy is the Chief Technology Officer (CTO) for BSLI responsible for providing the crucial technology edge to enable BSLI to differentiate itself positively in the marketplace.

Pramod is an IIT-IIM graduate and has over 22 years of work experience in the Financial Services Technology area. He has held several senior leadership positions in the IT and Financial Services Industry, including running his own software company early in his career. Prior to joining BSLI, Pramod was an Executive Vice President with Fullerton India Credit.

He was awarded the prestigious Pan-Asia IT Leadership Award for 2012 by Asia Insurance Review and Celent, for defining and implementing the technology strategy and roadmap for BSLI. He was also recognized among the Top 100 CIOs in India for 2011, by his peer group under the aegis of World CIO Council and CIO Association of India.

Mr. Anil Kumar Singh Chief Actuarial Officer (CAO)

Mr. Anil Kumar Singh is the Chief Actuarial Officer & Appointed Actuary for Birla Sun Life Insurance (BSLI) and is responsible for all Actuarial functions within the Company. Anil is a Fellow of the Institute of Actuaries of India, 2002 and holds a Masters in Statistics from Lucknow University.

Before joining BSLI, Anil was the Chief Actuary & Appointed Actuary at Bajaj Allianz Life Insurance Company. Anil has vast experience of close to 20 years in the Life Insurance industry in India, in Actuarial roles covering Valuation, Asset Liability Management, Product Development and Pricing with organizations like LIC, Aviva Life Insurance and was also a part of the BSLI Actuarial team during its inception in 2000-2001.

Mr. Lalit VermaniChief Legal Compliance &

Risk Officer (CLCRO)

Mr. Lalit Vermani is Chief Legal, Compliance and Risk Officer heading the Compliance, Legal, Risk and Internal Audit functions for the Company. He has 20 years of experience in various areas of Financial Services including Insurance, Asset Management and Investment banking. Prior to this assignment, Lalit was heading the Compliance function at Birla Sun Life AMC Ltd.

Lalit holds an Honours Degree in Economics and MBA with specialization in Finance. He is also a certified Financial Risk Manager (FRM) by Global Association of Risk Professionals.

Mr. Sashi Krishnan Chief Investment Officer (CIO)

Mr. Sashi Krishnan is the Chief Investment Officer (CIO) of Birla Sun Life Insurance. He joined the organization in December 2011 and has a rich experience of over 25 years in the Mutual Fund and Life Insurance industry.

Sashi has done his BE (Hons.) in Chemical Engineering and MSc (Hons.) in Economics from BITS, Pilani. He also has a Diploma in Management from IGNOU with a specialization in Finance. In addition, he has also done CAIIB from the Indian Institute of Bankers. He has an extensive experience in Equity and Debt Markets. Prior to joining BSLI, Sashi was the Chief Investment Officer at Bajaj Allianz Life Insurance Company where he managed Assets over Rs. 42,000 crores Besides leading the Investments team and being a member of the Investment Committee, he was also involved in product design and provided sales support. His previous assignments include leadership roles with DBS Bank (Singapore), DBS Cholamandalam Asset Management Ltd. and Unit Trust of India. Sashi is the Member of the Index Policy Committee of India Index Services & Products Ltd. and, also was the Co Chair of Life Insurance Committee of the Bombay Chamber of Commerce and Industry.

He has also served as the Member of the Financial Planning Standards Board, India in 2004-2006. He is also a member of the Capital Markets Committee of the Indian Merchants Chamber.

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10

Senior Management Team

Birla Sun Life Insurance

11

Mr. Vikas Seth Chief Distribution Officer (CDO)

Mr. Vikas Seth is Chief Distribution Officer (CDO) at BSLI. He is a qualified Electronics & Electrical Communication Engineer and has completed a Masters Degree in Business Administration (Marketing). He joined BSLI in January 2008.

Currently at BSLI, Vikas is responsible for Direct Sales Force, Bancassurance and Corporate Agency and Broker channels.

Vikas has a strong professional experience of over 17 years in diverse industries including Telecom, FMCG and Life Insurance. He has worked with organizations like Essar Telecom (Vodafone), Amway, ICICI Prudential and HDFC Life in the past. His expertise is in start-up, building distribution, implementation of sales & marketing strategies. He has played an important role in building BSLI's distribution capability.

Snapshot of Financial Indicators

TOTAL PREMIUM COLLECTED OVER THE YEARS (IN CRORES)

Total Premiumfor FY13-14 is

` 4,833 crores

Net Profitfor FY13-14 is

` 371 crores

OPEX forFY13-14 is

` 1,045 crores

NET PROFIT EARNED OVER THE YEARS (IN CRORES)

OPERATING EXPENSES OVER THE YEARS (IN CRORES)

5,50

6

5,67

7

5,88

5

5,21

6

4,83

3

9,44

3

7,11

0

5,61

4 7,15

8

7,17

7

2010 2011 2012 2013 2014

Total Premium Total Income

305461 542

371

2010 2011 2012 2013 2014

1328 1203 1215 1,161 1,045

2010 2011 2012 2013 2014

-435

Mr. Saurov Ghosh is Head – Human Resources & Training. Saurov is an enthusiastic, talented and seasoned HR professional. His strategic blend of thinking, management & influencing skills and integrated Business HR approach are some of the key drivers of success in his role.

Saurov has been with BSLI since January 2008. He joins us from Yes Bank, where he was Sr. Vice President Human Capital and was responsible for the Human Capital function for the Retail Banking Business. Prior to joining Yes Bank, Saurov worked with HDFC Standard Life Insurance since its initial period and had played a key role for implementing the Human Resource strategy for the company. He also has varied experience in engineering & process manufacturing sectors with the Kirloskar Group and CEAT ranging to a career span of 19 years in Human Resources.

Mr. Saurov GhoshHead – Human Resources & Training

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Annual Report 2013-14

10

Senior Management Team

Birla Sun Life Insurance

11

Mr. Vikas Seth Chief Distribution Officer (CDO)

Mr. Vikas Seth is Chief Distribution Officer (CDO) at BSLI. He is a qualified Electronics & Electrical Communication Engineer and has completed a Masters Degree in Business Administration (Marketing). He joined BSLI in January 2008.

Currently at BSLI, Vikas is responsible for Direct Sales Force, Bancassurance and Corporate Agency and Broker channels.

Vikas has a strong professional experience of over 17 years in diverse industries including Telecom, FMCG and Life Insurance. He has worked with organizations like Essar Telecom (Vodafone), Amway, ICICI Prudential and HDFC Life in the past. His expertise is in start-up, building distribution, implementation of sales & marketing strategies. He has played an important role in building BSLI's distribution capability.

Snapshot of Financial Indicators

TOTAL PREMIUM COLLECTED OVER THE YEARS (IN CRORES)

Total Premiumfor FY13-14 is

` 4,833 crores

Net Profitfor FY13-14 is

` 371 crores

OPEX forFY13-14 is

` 1,045 crores

NET PROFIT EARNED OVER THE YEARS (IN CRORES)

OPERATING EXPENSES OVER THE YEARS (IN CRORES)

5,50

6

5,67

7

5,88

5

5,21

6

4,83

3

9,44

3

7,11

0

5,61

4 7,15

8

7,17

72010 2011 2012 2013 2014

Total Premium Total Income

305461 542

371

2010 2011 2012 2013 2014

1328 1203 1215 1,161 1,045

2010 2011 2012 2013 2014

-435

Mr. Saurov Ghosh is Head – Human Resources & Training. Saurov is an enthusiastic, talented and seasoned HR professional. His strategic blend of thinking, management & influencing skills and integrated Business HR approach are some of the key drivers of success in his role.

Saurov has been with BSLI since January 2008. He joins us from Yes Bank, where he was Sr. Vice President Human Capital and was responsible for the Human Capital function for the Retail Banking Business. Prior to joining Yes Bank, Saurov worked with HDFC Standard Life Insurance since its initial period and had played a key role for implementing the Human Resource strategy for the company. He also has varied experience in engineering & process manufacturing sectors with the Kirloskar Group and CEAT ranging to a career span of 19 years in Human Resources.

Mr. Saurov GhoshHead – Human Resources & Training

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At Birla Sun Life Insurance, we know the importance of actively engaging with our customers to build loyalty, deepen relationships and gain insight to future actions. That is why we continue to build forums that allow us access to invaluable customer insights.

INSIGHT

13

Birla Sun Life Insurance

Competitive and Comprehensive Product Suite

Over the years, BSLI has offered very competitive and innovative products after careful assessment of our customers’ needs. The year 2013-14 saw the insurance industry undergo rapid changes. Our product mix too underwent a change in line with our mission towards a diverse and healthy product portfolio.

Products launched last year include:

• BSLI Immediate Annuity Plan – A traditional non-participating annuity pay plan that guarantees income to customers post retirement enabling them to lead a tension-free second innings in life.

• BSLI Easy Protect Plan – A simple, hassle-free term plan with an option to choose an increasing cover helping our customers to provide adequate protection to their families in case of any unforeseen events.

• BSLI Savings Plan – This traditional life insurance plan enhances customer savings by way of guaranteed additions, provides safety for loved ones and participates in profits arising out of the Company.

• BSLI Vision LifeSecure Plan – A participating traditional whole-life plan that offers an ideal combination oflong term savings and life insurance benefit. Through regular bonus accumulation and life insurance benefit, this product offers a perfect solution to customers' financial needs.

• BSLI Income Assured Plan – This non-participating guaranteed income plan offers regular guaranteed income together with life insurance benefits, thereby offering customers a second income.

• BSLI Grameen Jeevan Raksha Plan – This plan is designed specifically to offer life insurance cover at affordable costs to customers from the rural or social sector.

• BSLI Group CapSecure Plan – A comprehensive group insurance so lut ion that enables the master policyholders to manage their assets for leave encashment and gratuity schemes.

In addition to new products, BSLI also modified some popular existing products including 3 Unit Linked Plans (ULIPs), 2 Traditional Participating Products, 1 Unit Linked Pension Product, 2 Unit Linked Group Products,2 Traditional Group Products, 5 Traditional Individual Riders and 9 Group Riders.

This year, in keeping with our vision of enhanced customer delight, we developed the Financial Needs Analyzer, a tool that helps draw a complete financial picture of individual customers basis their current financial status, risk appetite, asset and liability position and also factors inflation. Basis need analysis, the tool offers recommendations to solutions that are either single products or combine the features of 2 or 3 existing products. Four such combination solutions have been successfully launched.

Regular newsletters ensure that our sales force remains updated with adequate information in every situation.

Strengthening Customer Relationships

In the business of life insurance, we consciously strive to understand the pulse of our customers. Our business and brand philosophies rest on our customer's interests, after careful consideration of their needs.

Understanding customer insights

Last year witnessed the successful execution of our Customer Connect Program enabling non-sales staff members from cross functional teams to engage with customers on a month-on-month basis. These interactions helped us to understand their changing needs and behaviours, continually tap new business opportunities, and improve customer retention.

Customer communication initiatives

The essence of our customer communication strategy is to continually foster a relationship of trust with our customers. Our communication pieces are aimed towards enlightening customers on the value of their purchase and keeping them updated on new services and solutions. Each piece of communication from BSLI is personalised with detailed execution for a heightened feeling of authenticity.

In line with the changing economic scenario, we have ensured that we share regular investment updates with our customers. Our investment communication on different mediums (email, physical newsletters, webinars and webcast) are aimed to demystify financial terminology and address other investment related concerns.

Annual Report 2013-14

Page 15: BSLI AR _15th cut

At Birla Sun Life Insurance, we know the importance of actively engaging with our customers to build loyalty, deepen relationships and gain insight to future actions. That is why we continue to build forums that allow us access to invaluable customer insights.

INSIGHT

13

Birla Sun Life Insurance

Competitive and Comprehensive Product Suite

Over the years, BSLI has offered very competitive and innovative products after careful assessment of our customers’ needs. The year 2013-14 saw the insurance industry undergo rapid changes. Our product mix too underwent a change in line with our mission towards a diverse and healthy product portfolio.

Products launched last year include:

• BSLI Immediate Annuity Plan – A traditional non-participating annuity pay plan that guarantees income to customers post retirement enabling them to lead a tension-free second innings in life.

• BSLI Easy Protect Plan – A simple, hassle-free term plan with an option to choose an increasing cover helping our customers to provide adequate protection to their families in case of any unforeseen events.

• BSLI Savings Plan – This traditional life insurance plan enhances customer savings by way of guaranteed additions, provides safety for loved ones and participates in profits arising out of the Company.

• BSLI Vision LifeSecure Plan – A participating traditional whole-life plan that offers an ideal combination oflong term savings and life insurance benefit. Through regular bonus accumulation and life insurance benefit, this product offers a perfect solution to customers' financial needs.

• BSLI Income Assured Plan – This non-participating guaranteed income plan offers regular guaranteed income together with life insurance benefits, thereby offering customers a second income.

• BSLI Grameen Jeevan Raksha Plan – This plan is designed specifically to offer life insurance cover at affordable costs to customers from the rural or social sector.

• BSLI Group CapSecure Plan – A comprehensive group insurance so lut ion that enables the master policyholders to manage their assets for leave encashment and gratuity schemes.

In addition to new products, BSLI also modified some popular existing products including 3 Unit Linked Plans (ULIPs), 2 Traditional Participating Products, 1 Unit Linked Pension Product, 2 Unit Linked Group Products,2 Traditional Group Products, 5 Traditional Individual Riders and 9 Group Riders.

This year, in keeping with our vision of enhanced customer delight, we developed the Financial Needs Analyzer, a tool that helps draw a complete financial picture of individual customers basis their current financial status, risk appetite, asset and liability position and also factors inflation. Basis need analysis, the tool offers recommendations to solutions that are either single products or combine the features of 2 or 3 existing products. Four such combination solutions have been successfully launched.

Regular newsletters ensure that our sales force remains updated with adequate information in every situation.

Strengthening Customer Relationships

In the business of life insurance, we consciously strive to understand the pulse of our customers. Our business and brand philosophies rest on our customer's interests, after careful consideration of their needs.

Understanding customer insights

Last year witnessed the successful execution of our Customer Connect Program enabling non-sales staff members from cross functional teams to engage with customers on a month-on-month basis. These interactions helped us to understand their changing needs and behaviours, continually tap new business opportunities, and improve customer retention.

Customer communication initiatives

The essence of our customer communication strategy is to continually foster a relationship of trust with our customers. Our communication pieces are aimed towards enlightening customers on the value of their purchase and keeping them updated on new services and solutions. Each piece of communication from BSLI is personalised with detailed execution for a heightened feeling of authenticity.

In line with the changing economic scenario, we have ensured that we share regular investment updates with our customers. Our investment communication on different mediums (email, physical newsletters, webinars and webcast) are aimed to demystify financial terminology and address other investment related concerns.

Annual Report 2013-14

Page 16: BSLI AR _15th cut

Annual Report 2013-14

14

Our Investment Expertise

We endeavour to build a quality investment portfolio within defined guidelines, offering liquidity together with long-term wealth creation. As partners in wealth creation, we offer our customers a wide range of funds from 100% debt to 100% equity exposure, catering to all risk profiles. We understand that policyholders have different financial goals and varying risk appetite. Therefore, as a convenience to them, we offer various asset allocation options, in addition to a self managed option.

Our funds have outperformed their respective benchmark and have yielded consistent returns to our investors on a long-term basis.

BSLI ensures compliance with Insurance Regulatory and Development Authority (Investments) Regulations, 2000, which focuses on the safety of policy holders investments by having a well-diversified quality investment portfolio and transparency through adequate portfolio disclosures.

An Inspiring Brand Philosophy

In this year, it has been our endeavour to reach our customers through brand campaigns that are emphatic and make them self-realise their needs. Key highlights of our brand and marketing initiatives undertaken last year include:

• Our Savings with Protection Solutions campaign that created a link to the brand and a strong connect with the message that targeted mass India to self-realise the benefits of small disciplined savings at regular intervals.

• In this year, we continued our partnership with KidZania, Mumbai in the form of an employment office established at their premises to provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. This is an initiative under the Not Jobs But Passions (NJBP) platform created by BSLI to help children explore their real passions.

• As a life insurance brand, we urge mass India to face uncertainties with confidence. As a step towards emphasising the message of preparing for the uncertainties in life, our brand associated with the popular Bollywood movie Bhag Milkha Bhag that celebrated the spirit of fighting back uncertainties. The association was supported by a 360 degree integrated campaign where various elements including TV, radio, cinema and a successful internal campaign were executed.

• In this year, we used multiple communication mediums to attain proximity with our customers and truly understand their needs. Moving away from a one-for-all selling approach, we adopted a sharper defined product pitch

for a specific customer segment need. In order to maintain consistency and have it cascade, BSLI introduced product audio-visuals which not only captured key product features in detail but also articulated customer benefits through compelling stories.

These initiatives resulted in the following:

• Our consideration scores continued to remain high (as per AC Nielsen)

• Our presence in PR was ranked No. 3 (source TAM Media)

• The Midas Awards, New York adjudged BSLI as a recipient of the Grand Midas and the Gold Midas Award for excellence in marketing

Birla Sun Life Insurance

15

86%

100%

86% 86%

100%

Year 1 Year 2 Year 3 Year 4 Year 5

Percentage of funds beating the benchmarks

as on 31st March, 2014

Page 17: BSLI AR _15th cut

Annual Report 2013-14

14

Our Investment Expertise

We endeavour to build a quality investment portfolio within defined guidelines, offering liquidity together with long-term wealth creation. As partners in wealth creation, we offer our customers a wide range of funds from 100% debt to 100% equity exposure, catering to all risk profiles. We understand that policyholders have different financial goals and varying risk appetite. Therefore, as a convenience to them, we offer various asset allocation options, in addition to a self managed option.

Our funds have outperformed their respective benchmark and have yielded consistent returns to our investors on a long-term basis.

BSLI ensures compliance with Insurance Regulatory and Development Authority (Investments) Regulations, 2000, which focuses on the safety of policy holders investments by having a well-diversified quality investment portfolio and transparency through adequate portfolio disclosures.

An Inspiring Brand Philosophy

In this year, it has been our endeavour to reach our customers through brand campaigns that are emphatic and make them self-realise their needs. Key highlights of our brand and marketing initiatives undertaken last year include:

• Our Savings with Protection Solutions campaign that created a link to the brand and a strong connect with the message that targeted mass India to self-realise the benefits of small disciplined savings at regular intervals.

• In this year, we continued our partnership with KidZania, Mumbai in the form of an employment office established at their premises to provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. This is an initiative under the Not Jobs But Passions (NJBP) platform created by BSLI to help children explore their real passions.

• As a life insurance brand, we urge mass India to face uncertainties with confidence. As a step towards emphasising the message of preparing for the uncertainties in life, our brand associated with the popular Bollywood movie Bhag Milkha Bhag that celebrated the spirit of fighting back uncertainties. The association was supported by a 360 degree integrated campaign where various elements including TV, radio, cinema and a successful internal campaign were executed.

• In this year, we used multiple communication mediums to attain proximity with our customers and truly understand their needs. Moving away from a one-for-all selling approach, we adopted a sharper defined product pitch

for a specific customer segment need. In order to maintain consistency and have it cascade, BSLI introduced product audio-visuals which not only captured key product features in detail but also articulated customer benefits through compelling stories.

These initiatives resulted in the following:

• Our consideration scores continued to remain high (as per AC Nielsen)

• Our presence in PR was ranked No. 3 (source TAM Media)

• The Midas Awards, New York adjudged BSLI as a recipient of the Grand Midas and the Gold Midas Award for excellence in marketing

Birla Sun Life Insurance

15

86%

100%

86% 86%

100%

Year 1 Year 2 Year 3 Year 4 Year 5

Percentage of funds beating the benchmarks

as on 31st March, 2014

Page 18: BSLI AR _15th cut

INNOVATION

Innovation is at the core of everything we do. Technological innovations help us bring unprecedented convenience for customers and address key business challenges in line with the changing business landscape. With greater service efficiencies and an efficient selling process, our focus lies on creating differentiation in the market.

Birla Sun Life Insurance

Committed to building a distinct

customer service experience

At BSLI, we believe that our benchmark of success is our relationship with customers. With a customer base of over two million policy holders, BSLI has attained recognition as the 3rd Most Trusted Life Insurance Company in the ‘Most Trusted Brands’ survey 2013 conducted by Brand Equity (The Economic Times Group) with Neilsen. We are becoming a partner of preference for a growing number of customers due to their experience when interacting with us.

We are committed towards engaging with policyholders using their most preferred medium and in a cost effective manner. Our efforts are towards ensuring that our customers' interests are adequately covered through effective and regular communication. We also remain focused on providing different customer convenience facilities to all our policyholders. Our knowledge portal has been upgraded with options such as weekly online chats, advanced search, etc., to enhance customer experience.

Customer communication and call centre

Our effective and robust customer service mechanism is backed by a strong back-end and call centre. Our contact centre and Interactive Voice Response (IVR) services offer assistance in four regional languages namely Tamil, Telugu, Kannada and Malayalam. These have been introduced over and above the existing services in English and Hindi, keeping in mind our customers' requirements. Customers can speak to our service executives in any of the available six languages.

360 Degree Customer View

We have implemented a new view for our customer facing units to provide them with all information pertaining to a particular customer on a real-time basis for an appropriate and guided conversation with customers. This ensures that all our customers conversations are informative and effective.

Enhancing Customer Contactability

Constant engagement with our policyholders helps us understand their needs better and thereby improve servicing. Sustained campaigns have been undertaken to enhance customer contactability so we can stay connected with them.

Enhanced service experience for Orphan Customers

BSLI is committed to assisting policy holders whose agent is no longer active, also referred to as 'orphan' policy holders in insurance parlance. To offer them a hassle-free service experience, the following initiatives were undertaken:

• A service kit was developed addressing details specific to the needs of orphan customers including payment information, online policy servicing, etc.

• BSLI initiated proactive health check calls to our orphan customers

• Our orphan customers are provided priority on customer service contact centres through an exclusive call back facility in place for them

About 80% of reinstatement requests received at various touch points are being processed automatically through our systems. The elimination in manual intervention has resulted in a TAT reduction from 5 days to 1 day.

17

Annual Report 2013-14

Page 19: BSLI AR _15th cut

INNOVATION

Innovation is at the core of everything we do. Technological innovations help us bring unprecedented convenience for customers and address key business challenges in line with the changing business landscape. With greater service efficiencies and an efficient selling process, our focus lies on creating differentiation in the market.

Birla Sun Life Insurance

Committed to building a distinct

customer service experience

At BSLI, we believe that our benchmark of success is our relationship with customers. With a customer base of over two million policy holders, BSLI has attained recognition as the 3rd Most Trusted Life Insurance Company in the ‘Most Trusted Brands’ survey 2013 conducted by Brand Equity (The Economic Times Group) with Neilsen. We are becoming a partner of preference for a growing number of customers due to their experience when interacting with us.

We are committed towards engaging with policyholders using their most preferred medium and in a cost effective manner. Our efforts are towards ensuring that our customers' interests are adequately covered through effective and regular communication. We also remain focused on providing different customer convenience facilities to all our policyholders. Our knowledge portal has been upgraded with options such as weekly online chats, advanced search, etc., to enhance customer experience.

Customer communication and call centre

Our effective and robust customer service mechanism is backed by a strong back-end and call centre. Our contact centre and Interactive Voice Response (IVR) services offer assistance in four regional languages namely Tamil, Telugu, Kannada and Malayalam. These have been introduced over and above the existing services in English and Hindi, keeping in mind our customers' requirements. Customers can speak to our service executives in any of the available six languages.

360 Degree Customer View

We have implemented a new view for our customer facing units to provide them with all information pertaining to a particular customer on a real-time basis for an appropriate and guided conversation with customers. This ensures that all our customers conversations are informative and effective.

Enhancing Customer Contactability

Constant engagement with our policyholders helps us understand their needs better and thereby improve servicing. Sustained campaigns have been undertaken to enhance customer contactability so we can stay connected with them.

Enhanced service experience for Orphan Customers

BSLI is committed to assisting policy holders whose agent is no longer active, also referred to as 'orphan' policy holders in insurance parlance. To offer them a hassle-free service experience, the following initiatives were undertaken:

• A service kit was developed addressing details specific to the needs of orphan customers including payment information, online policy servicing, etc.

• BSLI initiated proactive health check calls to our orphan customers

• Our orphan customers are provided priority on customer service contact centres through an exclusive call back facility in place for them

About 80% of reinstatement requests received at various touch points are being processed automatically through our systems. The elimination in manual intervention has resulted in a TAT reduction from 5 days to 1 day.

17

Annual Report 2013-14

Page 20: BSLI AR _15th cut

Annual Report 2013-14

18

To establish connect with customers, we continue to leverage innovative mediums of communication including games, micro-sites, and even social media. As a first step to our social engagement with customers, we have started listening to all social media conversations, and monitor the same on a regular basis. Customer grievances are appropriately routed towards satisfactory closure. Such tracking of conversations has helped limit customer complaints, policy surrenders and drive positive conversations.

SOS Button

For the benefit of the masses, BSLI is developing an emergency application that will be available on Android and iOs to help users in an uncertain situation. This application serves to enable contactibility for users in crisis situations with a defined list of emergency contacts.

Financial management

Ever since the Company reported its first maiden profit of ` 305 Crores in FY11 (as against loss of 435 Crores in Fy10), the profitability trend has been improving. In FY13, the Company registered net income of `371 Crores. The solvency position which is over 1.98 in March 2014 is well above the regulatory requirement of 1.50. The Company took several steps to rationalise expenses, improve efficiencies and productivity across its operations.

The Company declared `70 Crores of share capital a final dividend of amounting to 2170 Crores.

Birla Sun Life Insurance

19

Death Claims decided

*Outstanding Claims

Claims Payment Ratio

Overall Claims Repudiation Ratio

% of Claims settled within 30 days of Claim Intimation

95.50%

4.50%

82.55%

12.95%

77.56%

96.53%

3.47%

88.65%

7.85%

79.54%

Key Claims Parameters –

Individual Life

BSLI's

Performance

Avg. Private

Industry -

Performance

The industry at large including BSLI has had negative experiences of organised frauds across various locations pan India. We are cognisant of this negative trend and have undertaken corrective steps to address these. It remains our utmost duty to safeguard our customers' interests. BSLI reinforces its unstinted intent and commitment of paying every valid claim.

Underwriting

At BSLI, underwriting is a blend of automated as well as manual activities. Basis assessment on the risk and exposure, policies are subject to scrutiny.

Continuous assessment of our portfolio has enabled us to have a multi-level approval matrix enabled right at the advisor level allowing us to make constant changes as per the risk experienced. The global practice of tele-underwriting is also used at BSLI where underwriting experts interview applicants on the telephone about their medical and financial status to build decisions for policy issuance.

Enhancing communication channels

through innovations

Our digital platform has been upgraded to make it user friendly and promote self service. In addition to previously popular features such as the display of bonus of traditional products, payment of policy premiums, accessing tax certificates, premium receipts and statements at the click of a button, policyholders can also access the following:

• Check for the status of ECS registration and transactions

• Receive e-receipts for online payments

• Generate duplicate premium receipts

• Download pre-fi l led service request forms for appointment of nominee, change of address and contact details, request for payouts (loan, withdrawal and maturity)

Social media to connect with customers and prospects

Decentralisation in Policy Administration

All our policy administration processes at BSLI have been realigned to create a first time right experience for our customers. To enable faster service at the branches and to improve First Time Resolutions (FTRs), certain branches are now allowed to process customer requests for address change, partial withdrawal and surrender of policy. Similarly, facilities to address other policy servicing requests will be enabled at the branches in a phased manner.

BSLI has leveraged technology to support processes for a seamless customer exper ience. About 80% of reinstatement requests received at various touch points are being processed automatically through our systems. The elimination in manual intervention has resulted in a TAT reduction from 5 days to 1 day.

Capturing the Voice of the Customer (VOC)

To better our services, it is imperative that we understand our customers’ experiences across touch points. We capture details to analyse and adopt improvements in customer experience at two critical touch points – the call centre and branches, as also at one of most significant points of interaction – complaint redressal.

Claims Management

The claims stage is the moment of truth in any life insurance policy. Every policyholder desires that their dependant family or beneficiaries remain financially secure in case of any unfortunate eventuality of death. It is our claims mission to provide hassle-free, seamless and speedy claim settlement services to our customers and ensure prompt payment of valid claims.

As per the IRDA Annual Report for 2012-13, BSLI Claims ratios as at March 2013 are as indicated:

Social media to connect with customers and prospects

Digital technology allows us to interact with our customers on a real-time basis, thus keeping them engaged and further strengthening our connections. From social media to games, and micro-sites, BSLI continues to leverage innovative mediums of communication to reach out to customers.

Page 21: BSLI AR _15th cut

Annual Report 2013-14

18

To establish connect with customers, we continue to leverage innovative mediums of communication including games, micro-sites, and even social media. As a first step to our social engagement with customers, we have started listening to all social media conversations, and monitor the same on a regular basis. Customer grievances are appropriately routed towards satisfactory closure. Such tracking of conversations has helped limit customer complaints, policy surrenders and drive positive conversations.

SOS Button

For the benefit of the masses, BSLI is developing an emergency application that will be available on Android and iOs to help users in an uncertain situation. This application serves to enable contactibility for users in crisis situations with a defined list of emergency contacts.

Financial management

Ever since the Company reported its first maiden profit of ` 305 Crores in FY11 (as against loss of 435 Crores in Fy10), the profitability trend has been improving. In FY13, the Company registered net income of `371 Crores. The solvency position which is over 1.98 in March 2014 is well above the regulatory requirement of 1.50. The Company took several steps to rationalise expenses, improve efficiencies and productivity across its operations.

The Company declared `70 Crores of share capital a final dividend of amounting to 2170 Crores.

Birla Sun Life Insurance

19

Death Claims decided

*Outstanding Claims

Claims Payment Ratio

Overall Claims Repudiation Ratio

% of Claims settled within 30 days of Claim Intimation

95.50%

4.50%

82.55%

12.95%

77.56%

96.53%

3.47%

88.65%

7.85%

79.54%

Key Claims Parameters –

Individual Life

BSLI's

Performance

Avg. Private

Industry -

Performance

The industry at large including BSLI has had negative experiences of organised frauds across various locations pan India. We are cognisant of this negative trend and have undertaken corrective steps to address these. It remains our utmost duty to safeguard our customers' interests. BSLI reinforces its unstinted intent and commitment of paying every valid claim.

Underwriting

At BSLI, underwriting is a blend of automated as well as manual activities. Basis assessment on the risk and exposure, policies are subject to scrutiny.

Continuous assessment of our portfolio has enabled us to have a multi-level approval matrix enabled right at the advisor level allowing us to make constant changes as per the risk experienced. The global practice of tele-underwriting is also used at BSLI where underwriting experts interview applicants on the telephone about their medical and financial status to build decisions for policy issuance.

Enhancing communication channels

through innovations

Our digital platform has been upgraded to make it user friendly and promote self service. In addition to previously popular features such as the display of bonus of traditional products, payment of policy premiums, accessing tax certificates, premium receipts and statements at the click of a button, policyholders can also access the following:

• Check for the status of ECS registration and transactions

• Receive e-receipts for online payments

• Generate duplicate premium receipts

• Download pre-fi l led service request forms for appointment of nominee, change of address and contact details, request for payouts (loan, withdrawal and maturity)

Social media to connect with customers and prospects

Decentralisation in Policy Administration

All our policy administration processes at BSLI have been realigned to create a first time right experience for our customers. To enable faster service at the branches and to improve First Time Resolutions (FTRs), certain branches are now allowed to process customer requests for address change, partial withdrawal and surrender of policy. Similarly, facilities to address other policy servicing requests will be enabled at the branches in a phased manner.

BSLI has leveraged technology to support processes for a seamless customer exper ience. About 80% of reinstatement requests received at various touch points are being processed automatically through our systems. The elimination in manual intervention has resulted in a TAT reduction from 5 days to 1 day.

Capturing the Voice of the Customer (VOC)

To better our services, it is imperative that we understand our customers’ experiences across touch points. We capture details to analyse and adopt improvements in customer experience at two critical touch points – the call centre and branches, as also at one of most significant points of interaction – complaint redressal.

Claims Management

The claims stage is the moment of truth in any life insurance policy. Every policyholder desires that their dependant family or beneficiaries remain financially secure in case of any unfortunate eventuality of death. It is our claims mission to provide hassle-free, seamless and speedy claim settlement services to our customers and ensure prompt payment of valid claims.

As per the IRDA Annual Report for 2012-13, BSLI Claims ratios as at March 2013 are as indicated:

Digital technology allows us to interact with our customers on a real-time basis, thus keeping them engaged and further strengthening our connections. From social media to games, and micro-sites, BSLI continues to leverage innovative mediums of communication to reach out to customers.

Page 22: BSLI AR _15th cut

INTEGRATION

As we go forth, we at BSLI understand that integration of all our operational processes and functions is the key to sustained profitability. With the use of innovative methods and effective communication tools, we continue to leverage our strengths to achieve long-term growth.

Birla Sun Life Insurance

21

• Our sales management processes under the BSLI Way initiative were strengthened. The agency forces have been empowered with technological enablers developed to ensure adherence to sales management processes. Mobile based solutions have helped connect the field workforce to the back-end operations and unify multiple message streams, thereby driving sales efficiently. To enhance the sales process quality and customer experience at the time of the purchase, underwriting privileges for advisors and the process of Pre-Issuance Verification Calling (PIVC) was launched for superior business quality.

• New audio-visual sales tools were developed to enable advisors to understand the features and benefits of multiple products and enable appropriate targeted selling basis segmented product categorization.

Third-party distribution partnership

We actively collaborate with our key Corporate Agents and Broker (CAB) and Banking partners to map customer segments, identify the specific needs across the varied segments and structure products in accordance. This ensures that our insurance solutions are delivered to the end customers after a thorough understanding of their needs and the needs of our trusted intermediaries.

• Strengthened our product offerings after accurately mapping customer segments of our partners. In line with their needs, we added limited pay full guaranteed non par products for the retail segments.

• We developed a Quality Assurance (QA) framework in consultation with our CAB channel partners. In this paradigm shift from Quality Control to Quality Assurance, agreements have been signed with key accounts in CAB to initiate the QA framework in their respective set-up.

• In FY14, we have remained focused to ensure wider and deeper integration with our channel partners. In line with the same, as a first stage one way access to BSLI's CRM has been provided to channel partners and the second stage focused on enabling access to channel partners to directly service their respective customers

· Created data analytics for key partners to enable them to provided customised solutions to their customer segments.

• A mobile activity tracker and portal allows our sales teams to access information on BSLI's insurance solutions on the go, enabling them to provide prompt service to customers.

• At BSLI, we strongly believe in personalised customer interface. We have moved towards 100% face-to-face sales meetings with policy holders to ensure consent from customers on products being sold correctly and adequate need identification.

Widening our reach using a mix of traditional

and emerging channels

Our strategy has been to scale profitable distribution with thorough understanding of customer needs. Amongst private players, BSLI in FY2014 in new business terms ranked in the top 6 agency teams and ranked 7 in overall sales terms (individual and group).

Direct Sales Force Management

Our extensive distribution reach in 493 cities through a network of 559 branches supported by an average empanelled advisor base of 103,123 equipped with knowledge on our products and solutions help connect with customers in keeping with our philosophy of need-based selling. To further this agenda, the agency channel had undertaken the following key initiatives in the last year:

• Implemented a focused distribution creation policy through resource allocation on assessment of potential, current performance and customer demographics of a region. Advisors were recruited from the branch catchment based on micro-market demographics like dominant age segment, dominant community, etc.

Multiple initiatives including trainings, BTL campaigns, FLS recruitment and hiring tools, etc. were launched to help drive this program in the field.

• Research suggests that customers purchased different life insurance policies through their life stages basis their needs. An up-sell initiative was launched with the objective of providing life insurance solutions to existing customers at different milestones in their lives. A propensity model basis customer profile was developed to help advisors in identifying potential customers. A strong technology platform supported the field staff towards the sharing, tracking and closing of leads.

• With an aim to enhance customers engagement, our agency force and partners were introduced to Empower@Ease, an integrated end-to-end technology enabled platform for all sales management needs across channels. As a first step towards enhanced customer experience, standardised sales processes and faster policy issuance, it provides tailor-made insurance solutions towards goal-based savings. This technology is multi-lingual and supported on all new age devices including smart phones, tablets, laptops and desktops.

Annual Report 2013-14

Page 23: BSLI AR _15th cut

INTEGRATION

As we go forth, we at BSLI understand that integration of all our operational processes and functions is the key to sustained profitability. With the use of innovative methods and effective communication tools, we continue to leverage our strengths to achieve long-term growth.

Birla Sun Life Insurance

21

• Our sales management processes under the BSLI Way initiative were strengthened. The agency forces have been empowered with technological enablers developed to ensure adherence to sales management processes. Mobile based solutions have helped connect the field workforce to the back-end operations and unify multiple message streams, thereby driving sales efficiently. To enhance the sales process quality and customer experience at the time of the purchase, underwriting privileges for advisors and the process of Pre-Issuance Verification Calling (PIVC) was launched for superior business quality.

• New audio-visual sales tools were developed to enable advisors to understand the features and benefits of multiple products and enable appropriate targeted selling basis segmented product categorization.

Third-party distribution partnership

We actively collaborate with our key Corporate Agents and Broker (CAB) and Banking partners to map customer segments, identify the specific needs across the varied segments and structure products in accordance. This ensures that our insurance solutions are delivered to the end customers after a thorough understanding of their needs and the needs of our trusted intermediaries.

• Strengthened our product offerings after accurately mapping customer segments of our partners. In line with their needs, we added limited pay full guaranteed non par products for the retail segments.

• We developed a Quality Assurance (QA) framework in consultation with our CAB channel partners. In this paradigm shift from Quality Control to Quality Assurance, agreements have been signed with key accounts in CAB to initiate the QA framework in their respective set-up.

• In FY14, we have remained focused to ensure wider and deeper integration with our channel partners. In line with the same, as a first stage one way access to BSLI's CRM has been provided to channel partners and the second stage focused on enabling access to channel partners to directly service their respective customers

· Created data analytics for key partners to enable them to provided customised solutions to their customer segments.

• A mobile activity tracker and portal allows our sales teams to access information on BSLI's insurance solutions on the go, enabling them to provide prompt service to customers.

• At BSLI, we strongly believe in personalised customer interface. We have moved towards 100% face-to-face sales meetings with policy holders to ensure consent from customers on products being sold correctly and adequate need identification.

Widening our reach using a mix of traditional

and emerging channels

Our strategy has been to scale profitable distribution with thorough understanding of customer needs. Amongst private players, BSLI in FY2014 in new business terms ranked in the top 6 agency teams and ranked 7 in overall sales terms (individual and group).

Direct Sales Force Management

Our extensive distribution reach in 493 cities through a network of 559 branches supported by an average empanelled advisor base of 103,123 equipped with knowledge on our products and solutions help connect with customers in keeping with our philosophy of need-based selling. To further this agenda, the agency channel had undertaken the following key initiatives in the last year:

• Implemented a focused distribution creation policy through resource allocation on assessment of potential, current performance and customer demographics of a region. Advisors were recruited from the branch catchment based on micro-market demographics like dominant age segment, dominant community, etc.

Multiple initiatives including trainings, BTL campaigns, FLS recruitment and hiring tools, etc. were launched to help drive this program in the field.

• Research suggests that customers purchased different life insurance policies through their life stages basis their needs. An up-sell initiative was launched with the objective of providing life insurance solutions to existing customers at different milestones in their lives. A propensity model basis customer profile was developed to help advisors in identifying potential customers. A strong technology platform supported the field staff towards the sharing, tracking and closing of leads.

• With an aim to enhance customers engagement, our agency force and partners were introduced to Empower@Ease, an integrated end-to-end technology enabled platform for all sales management needs across channels. As a first step towards enhanced customer experience, standardised sales processes and faster policy issuance, it provides tailor-made insurance solutions towards goal-based savings. This technology is multi-lingual and supported on all new age devices including smart phones, tablets, laptops and desktops.

Annual Report 2013-14

Page 24: BSLI AR _15th cut

Building operational efficiencies by

fortifying our strengths

BSLI is committed to quality and process excellence by fostering a continuous improvement culture within the organisation. We have undertaken conscious efforts towards building efficiency within processes and people. Some significant initiatives are as follows:

• Process Maturity Assessment practice was introduced to strengthen internal processes towards better customer experience. The maturity of vital processes was assessed against best in class industry practices to ensure that it is optimised and delivers the desired output.

• To adopt a structured approach to garner ideas from employees and to orient them towards a continuous improvement culture, a Kaizen portal was developed and employees were trained on the concepts. The portal registered over 1000 Kaizens and 350 were implemented through multiple campaigns held.

• Under the Lean Six Sigma Projects or Green Belt Problem Solving Program 6 projects were undertaken together with 30 small improvement or Yellow Belt projects.

• In order to improve branch productivity, centralised analytics were initiated through MIS Centralisation.

• At BSLI, key projects are identified on the Noise dashboard, a patented analytical best practice in the organisation. It has helped build focus on customer-centricity, increased productivity and enhanced retention efforts through various channels. Project such as Enhancing Self Service where the IVR usage and online services bettered from an 11% to 24% and 36% to 40% respectively were monitored.

• BSLI was awarded the Bronze Award at the ABG Business Excellence Assessment in 2013.

An engaged, empowered and

motivated workforce

We strongly believe that employees that are motivated and engaged bring in their best to work each day and contribute more effectively towards their own and the organisation's success. We are committed to building HR processes and practices which are a benchmark in the industry.

The Team Engagement Survey, an annual survey conducted by BSLI to continuously assess employee engagement levels. Offers employees an opportunity to rate their managers on parameters such as role clarity, learning and development, recognition, alignment, support and caring. The internet based survey conducted in 2013 saw 96% voluntary participation from our employees. The engagement score at BSLI saw a significant jump from the previous year indicating that the engagement levels among our employees have increased.

It is important to know:

• BSLI reported an engagement score of 3.99 on a 5 point scale indicating that our employees understand their roles well and believe that their skills are well utilised in their current role.

• The score also indicates that our employees understand their contribution to the mission of the company and get recognised for doing good work.

Wellness initiatives

We are committed to promoting a healthy lifestyle for our employees. For the past two years, we have been participating in Stepathlon, an initiative where employees to sign up for a “race around a virtual world”. The activity is for 100 days and has several corporate participants from across industries. Employees form teams where each member is provided a pedometer and encouraged to walk a minimum of 10,000 steps a day. Teams that clock the most number of steps at the end of 100 days are awarded.

Employee Development and Talent Management

In order to build the capability of our workforce for the future, it is our endeavour to ensure that our employees have the knowledge and the insights required to deliver results and add value to our customers. On-the-job training followed by mandatory application of learnings enable our employees to build their capabilities at an accelerated pace. BSLI believes in providing its employees with opportunities to further broad base their skills. Towards this end, more than 250 of our roles were filled through internal promotions or movements. Our focus is to ensure that our employees are provided with multi-skilling opportunities which in turn help them get more exposure and add greater value to their roles.

Diversity

We encourage gender diversity and continue to build an inclusive environment for women employees to have a sustainable and rewarding career with us. Last year, we covered several managers and teams through sessions that focused on helping them understand the importance of diversity and become more self-aware and inclusive in their working style.

Giving back to Society

We continue our efforts to engage with society at large through various initiatives. Our employees are encouraged to invest their time for noble causes in an attempt to give back to society. The last year saw several of our employees participate wholeheartedly in CSR initiatives by way of donating groceries to old age homes on a monthly basis and providing school stationary and clothes for less fortunate children. We actively supported other NGO’s and charitable trusts for underprivileged women, orphan children and the physically challenged by giving these organisations the opportunity to put up their stalls at the various engagement events conducted through the year.

Annual Report 2013-14

22

Birla Sun Life Insurance

23

Rewards & Recognitions

BSLI was awarded for 'Outstanding Customer Service' at the Life Insurance Awards, 2013 conducted in the 2nd Indian Pension Fund Congress 2013

The 4th CII National HR Excellence Award 2013 in the category of 'Strong Commitment to HR Excellence' was awarded to Birla Sun Life Insurance

BSLI won for the third consecutive year the Gold trophy for financial reporting from The Institute of Chartered Accountants of India (ICAI)

BSLI earned recognition at the Effies – The Indian chapter of Effies International for the fourth consecutive year for the best marketing campaign

The Midas Awards, New York adjudged BSLI as a recipient of the Grand Midas and the Gold Midas Award for excellence in marketing

Birla Sun Life Insurance attained recognition as the 'Third Most Trusted Life Insurer' in the annual Most Trusted Brands Survey 2013 by Brand Equity (The Economic Times)

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Building operational efficiencies by

fortifying our strengths

BSLI is committed to quality and process excellence by fostering a continuous improvement culture within the organisation. We have undertaken conscious efforts towards building efficiency within processes and people. Some significant initiatives are as follows:

• Process Maturity Assessment practice was introduced to strengthen internal processes towards better customer experience. The maturity of vital processes was assessed against best in class industry practices to ensure that it is optimised and delivers the desired output.

• To adopt a structured approach to garner ideas from employees and to orient them towards a continuous improvement culture, a Kaizen portal was developed and employees were trained on the concepts. The portal registered over 1000 Kaizens and 350 were implemented through multiple campaigns held.

• Under the Lean Six Sigma Projects or Green Belt Problem Solving Program 6 projects were undertaken together with 30 small improvement or Yellow Belt projects.

• In order to improve branch productivity, centralised analytics were initiated through MIS Centralisation.

• At BSLI, key projects are identified on the Noise dashboard, a patented analytical best practice in the organisation. It has helped build focus on customer-centricity, increased productivity and enhanced retention efforts through various channels. Project such as Enhancing Self Service where the IVR usage and online services bettered from an 11% to 24% and 36% to 40% respectively were monitored.

• BSLI was awarded the Bronze Award at the ABG Business Excellence Assessment in 2013.

An engaged, empowered and

motivated workforce

We strongly believe that employees that are motivated and engaged bring in their best to work each day and contribute more effectively towards their own and the organisation's success. We are committed to building HR processes and practices which are a benchmark in the industry.

The Team Engagement Survey, an annual survey conducted by BSLI to continuously assess employee engagement levels. Offers employees an opportunity to rate their managers on parameters such as role clarity, learning and development, recognition, alignment, support and caring. The internet based survey conducted in 2013 saw 96% voluntary participation from our employees. The engagement score at BSLI saw a significant jump from the previous year indicating that the engagement levels among our employees have increased.

It is important to know:

• BSLI reported an engagement score of 3.99 on a 5 point scale indicating that our employees understand their roles well and believe that their skills are well utilised in their current role.

• The score also indicates that our employees understand their contribution to the mission of the company and get recognised for doing good work.

Wellness initiatives

We are committed to promoting a healthy lifestyle for our employees. For the past two years, we have been participating in Stepathlon, an initiative where employees to sign up for a “race around a virtual world”. The activity is for 100 days and has several corporate participants from across industries. Employees form teams where each member is provided a pedometer and encouraged to walk a minimum of 10,000 steps a day. Teams that clock the most number of steps at the end of 100 days are awarded.

Employee Development and Talent Management

In order to build the capability of our workforce for the future, it is our endeavour to ensure that our employees have the knowledge and the insights required to deliver results and add value to our customers. On-the-job training followed by mandatory application of learnings enable our employees to build their capabilities at an accelerated pace. BSLI believes in providing its employees with opportunities to further broad base their skills. Towards this end, more than 250 of our roles were filled through internal promotions or movements. Our focus is to ensure that our employees are provided with multi-skilling opportunities which in turn help them get more exposure and add greater value to their roles.

Diversity

We encourage gender diversity and continue to build an inclusive environment for women employees to have a sustainable and rewarding career with us. Last year, we covered several managers and teams through sessions that focused on helping them understand the importance of diversity and become more self-aware and inclusive in their working style.

Giving back to Society

We continue our efforts to engage with society at large through various initiatives. Our employees are encouraged to invest their time for noble causes in an attempt to give back to society. The last year saw several of our employees participate wholeheartedly in CSR initiatives by way of donating groceries to old age homes on a monthly basis and providing school stationary and clothes for less fortunate children. We actively supported other NGO’s and charitable trusts for underprivileged women, orphan children and the physically challenged by giving these organisations the opportunity to put up their stalls at the various engagement events conducted through the year.

Annual Report 2013-14

22

Birla Sun Life Insurance

23

Rewards & Recognitions

BSLI was awarded for 'Outstanding Customer Service' at the Life Insurance Awards, 2013 conducted in the 2nd Indian Pension Fund Congress 2013

The 4th CII National HR Excellence Award 2013 in the category of 'Strong Commitment to HR Excellence' was awarded to Birla Sun Life InsuranceInsurance

BSLI won for the third consecutive year the Gold trophy for financial reporting from The Institute of Chartered Accountants of India (ICAI)

BSLI earned recognition at the Effies – The Indian chapter of Effies International for the fourth consecutive year for the best marketing campaign

The Midas Awards, New York adjudged BSLI as a recipient of the Grand Midas and the Gold Midas Award for excellence in marketing

Birla Sun Life Insurance attained recognition as the 'Third Most Trusted Life Insurer' in the annual Most Trusted Brands Survey 2013 by Brand Equity (The Economic Times)

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24

Annual Report 2013-14

FINANCIAL REPORT

stCorporate information as on 31 March 2014

Birla Sun Life Insurance

Joint Statutory Auditors

Sunshine Tower, Level 19, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013.

M/s. Khimji Kunverji & Co.12th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (W), Mumbai – 400 028.

M/s. S. R. Batliboi & Associates LLP

Citi Bank N.A.

Main Bankers Deutsche Bank HDFC Bank Standard Chartered Bank

Mr. Ashish Lakhtakia

Company Secretary

Mr. Kumar Mangalam Birla Mr. Donald A. Stewart Mr. Ajay Srinivasan

Mr. Puranmalka Mr. Gian P. Gupta Mr. M. V. NairMr. Pankaj Razdan Mr. Kevin Strain Dr. Rakesh JainMs. Tarjani Vakil Mr. Venkatesh Mysore

Board of Directors

Senior Management Team

Mr. Mayank BathwalDeputy Chief Executive Officer

Mr. Amit JainChief Financial Officer

Mr. Anil Kumar SinghChief Actuarial Officer

Mr. Lalit VermaniChief Legal, Compliance &Risk Officer

Mr. Pramod KrishnamurthyChief Technology Officer

Mr. Sashi KrishnanChief Investment Officer

Mr. Saurov GhoshHead - Human Resources & Training

Mr. Vikas SethChief Distribution Officer

Mr. Ajay SrinivasanMr. Amit Jain Mr. Anil Kumar Singh

Mandatory Committee

Asset Liability Management CommitteeMs. Keerti GuptaMr. Lalit VermaniMr. Mayank Bathwal

Mr. Pankaj RazdanMr. Sashi KrishnanMr. Venkatesh Mysore

Mr. Gian P. Gupta – ChairmanMr. Ajay SrinivasanMr. Puranmalka

Audit Committee

Mr. Kevin StrainMr. Pankaj Razdan

Ms. Tarjani VakilMr. Venkatesh Mysore

Mr. Ajay SrinivasanMr. Amit Jain Mr. Anil Kumar Singh

Investment Committee

Ms. Keerti GuptaMr. Lalit VermaniMr. Mayank Bathwal

Mr. Pankaj RazdanMr. Sashi KrishnanMr. Venkatesh Mysore

Mr. N. N. Jambusaria – ChairmanMr. Amit JainMr. Anil Kumar Singh

Policyholders' Protection Committee

Ms. Anjali Makhija Mr. Ashish LakhtakiaMr. Lalit Vermani

Mr. Mayank BathwalMr. Pankaj RazdanMr. Vikas Seth

Mr. Amitabh Verma

Mr. Ajay SrinivasanMr. Gian P. Gupta

Risk Management Committee

Mr. Pankaj RazdanMs. Tarjani Vakil

Mr. Venkatesh Mysore

Non-Mandatory Committee

Finance CommitteeMr. Ajay SrinivasanMr. Puranmalka

Mr. Gian P. GuptaMs. Tarjani Vakil

Mr. Venkatesh Mysore

Share Allotment Committee Mr. Puranmalka Mr. Gian P. Gupta Mr. Venkatesh Mysore

With Profits Committee Mr. Gian P. Gupta Mr. Anil Kumar Singh Mr. Pankaj Razdan Mr. Vivek Jalan

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Annual Report 2013-14

Directors’ Report

Dear Shareholders,

On behalf of your Board of Directors, I present the fourteenth Annual Report, together with the Audited Statement of Accounts, of Birla Sun Life Insurance Company Limited (‘the Company/BSLI’) for the period ended March 31, 2014.

1. INDUSTRY & BUSINESS PERFORMANCE The Life Insurance Industry which has seen continuous changes due to macro-economic and regulatory changes has shifted priorities of all

life insurers towards building differentiated business models. Some of the key trends are as follows: • Mostprivatelifeinsurershavetakenstepstobalancetheirchannelmixandimprovingefficienciesintheagencychannel.Theindustry

witnessedanincreaseinnumberofagentsfrom2.1millioninFY13to2.2millioninFY14aidedbyrelaxationofeligibilityrequirementsfor new agents. Earlier, the industry witnessed agents declining from 3 million as on March 2010 to 2.2 million in March 2013.

• Bancassurancechannelhasbeenabletoadaptbettertothenewregulationsregimewith41%marketshareamongstprivateplayersinFY13from25%inFY11.

• NewProductregulationsfornon-linkedproductsweremadeeffectiveJanuary1,2014,withaviewtoincreasepolicyholders’valuepropositionbyincreasingminimumguaranteebenefitsandminimumsumassurednorms.

• Recentchangesinregulationshasledtotheindustryseeingasignificantshiftinproductmixtowardstraditionalparticipatingproductswhichcontributedaround76%ofthetotalindustrysalesinFY14.

• Renewalsacrosstheindustryarelowerthanexpectedgivenlowpersistencyandhighersurrendersinunitlinkedproducts.Severalinitiativesarebeingtakenbytheindustryplayersattheacquisitionstageandintheirserviceofferingtoreversethistrend.Focusneedstograduallyshifttowardsbettersalesmanagementpracticesandconsultativesellingthroughsegmentedofferingstoenhancequalityofbusiness.

TheoutlookforFY15intermsofnewbusinessgrowthisexpectedtobemoderateduetotransitiontoproductsaspernewregulations.However,recenteasingofinflationarytrendsandsofteningofpricesofgoldandrealestateshouldaugurwellfortheindustrygoingforward.Furtherimprovementsinthemacro-economicenvironmentwillalsohelptheinsuranceindustryinthecomingyear.Regulatorychanges,liketherecentbrokingguidelinesforbankscanactasanotherpositiveleverforgrowthgoingforward.

BSLIiswellpositionedtoleveragetheopportunities.Overall,BSLIhastransitionedwellintermsofitsproductstrategyleadingtoabalancedsuite of participating, non-participating and unit-linked products.

2. BUSINESS REVIEW AND FINANCIAL PERFORMANCE Financial Performance Table1:Business&FinancialPerformanceofourCompany

(` in Crores)

Particulars FY14 FY13 Inc. (%)

Business PerformanceNewBusinessPremium 1,697 1,837 -8%RenewalPremium 3,136 3,380 -7%

Total Premium 4,833 5,216 -7%

Financial PerformanceIncome Gross premium income 4,833 5,216 -7%Reinsurance (net) -188 -165 14%Total premium income (net) 4,645 5,052 -8%Incomefrominvestments Policyholders 2,496 2,070 21%Shareholders 115 116 -1%InvestmentIncome 2, 610 2,186 19%Other Income 37 37 -0.3%

Total Income 7,292 7,274 0.2%

Less: Commission 235 300 -22%Expenses(includingdepreciation) 1,045 1,161 -10%Benefitspaid(net) 3,666 3,659 0.2%Provisionsforactuarialliability(net) 1,977 1,612 23%ProvisionforTaxation

Profit for the Current Year 371 542 -32%

Share Capital 1,901 1,970Reserve & Surplus 268 480Net Worth 1,257 1,248

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TheCompanyrecordedsatisfactoryperformanceinFY14acrossarangeofkeyfinancialparameters:

• TheCompanyregisteredNetProfitof` 371 crores for the year, against `542crores inthepreviousyear.Thefall innetprofit isprimarily due to lower new business premium growth and reduction in the renewal premium. The company continues its focus on profitabilitythroughbettermanagementofin-forcebusiness,optimisationofexpensesandbuildingefficienciesindistribution.

• TheCompany recordednewbusinesspremiumof` 1,697 crores in FY14 against `1,837crores inFY13.Saleswereadverselyaffected in the second half due to transition to new products post regulatory changes.

• Renewalpremiumat`3,136croreswaslowerby7%.Wewillcontinuetofocusonmanagingoursubstantialin-forcebookandonimprovingpersistencylevels,whichisimportanttodelivervaluefromourexistingrenewalbook.

• Traditionalproductsaccountedfor60%ofsalesinFY14asagainst55%inFY13.Thiswaspartlyonaccountoftherecentchangesinproduct regulations.

• Overallcommissionratiosawadecreaseto4.9%asagainst5.8%inFY13.

• Opex toTotalPremiumratiohas improvedmarginally inFY14 to21.6%against22.3% forFY13,primarilydue tobetterexpensemanagement.

• Strongsolvencymarginat1.86fortheyearendedMarch2014againsttheregulatoryrequirementof1.5indicatingtheCompany’sstablefinancialposition.

• Giventherobustfinancialperformance,therehasbeennocapitalinfusionforthepast4years.

Witharobustoperatingplatform,strongtrustedbrandandlong-termcommitmenttowardslifeinsurancebusiness,theCompanyiswellpositioned to meet the challenges and to tap the long-term opportunities of the life insurance industry.

Summary of Operations and Business

• AftertheregulatorychangesinOctober2013theCompanyhasmovedtoabalancedsalesmixofparticipatingandnon-participatingproducts.

• BSLIcontinuestofollowasuccessful multi-channel distributionstrategywithover560branches,4keybankpartnersandover 150 third party distributors.

• Agency channelcontinuestobetheCompany’slargestdistributionchannelcontributingtoovertwothirdofourindividualbusinesswithNewBusinesspremiumof`569crores.InFY14,thefocuswasonmovingtowardsamorebalancedproductmixandensuringdistribution creation through licensing of new agents. Going forward, the agency channel’s primary focus will be towards empowering thesalesforcewitheffectivesalespractices,solutionsandenablingtoolstoenhanceproductivity.

• Bancassurance channeldeliverednewbusinesspremiumof`171crores.Recentbrokingguidelines forbanksareexpected toprovidetheCompanywithaccesstowideropportunitiesfortie-ups.Ourprioritiesforthechannelmovingforwardwillbetoharvestexistingpartners’growingcustomerbaseandtappingnewopportunitiesfrombanksthatbecomebrokers.

• NewBusinesspremiumfromCorporate Agent & Brokers (CAB) and other channels was ` 138 crores. Sales from this segment was lowercomparedtolastyearduetoinitiativestoimprovequalityofbusiness.Goingforwardthefocuswillbeonafewexistingstrategictie-upsandadditionofnewcapacities,evenwhilecontinuingeffortstoimprovethequalityofbusiness.

• Group Businessincreaseditsshareinnewbusinesspremiumby4%withnewbusinesspremiumof` 819 crores. This came from improvementinproductlinesandafocusonincreasingourpenetration.ThishelpedtheCompanyachieve1strankinGroupSalesamongstallprivatelifeinsurersfortheperiodFY14.TheCompanyhasmadesignificantinroadsintogrouptermbusinesswhichhavebetterprofitmargins.

• Duringtheyearunderreview,theCompanylaunchedseveralnewproductsandre-launchedexistingproductstocomplywiththenewregulatory norms. Below are the products which were launched during the year:

² Non-ParticipatingTraditionalproducts:BSLIEasyProtect,SavingsPlan,IncomeAssureandImmediateAnnuity ² ParticipatingTraditionalproducts:BSLIVisionLifeIncome,VisionLifeSecure,VisionEndowmentandVisionRegularreturns ² UnitLinkedproducts:BSLIWealthSecure,WealthAssure,WealthMaxandEmpowerPension ² ProductsunderRuralandGroupplatformwerealsolaunched.

• Assets under Management (AUM) grew from ` 21,559 crores in FY13 to ` 23,445 crores for the year ended March 31, 2014. Forunit-linkedfunds,companyhasdeliveredsuperior fundperformanceconsistentlybeating itsbenchmarktargets.Over90%ofthe fundsoutperformedtheir respectivebenchmarkover the long-term(across2-4years.)100%of the fundsoutperformed theirbenchmarkoverthe5yearperiodendingMarch31,2014.

• Maintainingahighlevelofpersistencyisimportantforourfinancialresults,asalargeblockofin-forcepoliciesprovidesuswithregularrevenuesandprofits.Tofurtherstrengthentherenewalbook,theCompanyundertookseveralqualityinitiativeswhichincludedpre-issuanceverificationcalls,pre-issuancejointdeclarationfrompolicyholder,andqualityagreementswithdistributorstodrivetherightsalesbehaviourandreducefirstpremiumlapse.BSLI’s13monthpremiumpersistencyisat59%asonMarch31,2014.

• Focus of the Company is to move Information Technology towards customer-facing processes including customer service anddistributionsupport.TheCompanyhaslaunched“Empoweratease”,whichisleveragingtechnologytodeliveranend-to-endsolutionfromprospectingtoclosures,therebyenhancingproductivityandcustomerexperience.TheCompanydevelopedanonlinecustomerenrollment application and enabled more self-servicing options. To improve distributors’ performance, the Company leveragedtechnologytoprovideon-demandtrackingofinformationrelatedtosalesactivityandperformance.

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• ProactivemeasureshavebeenundertakentostrengthencomplianceandriskmanagementfunctiongiventheCompany’sfocustomaintainrobustinternalcontrols,mitigaterisksandimprovesalesconductandtherebymaintainthereputationofbeingoneofmostcompliantinsurancecompaniesinanenvironmentofincreasingregulatoryoversight.

• Ourinvestmentinbrandingyieldedgoodresultswithbothbrandawarenessaswellasconsiderationscores(i.e.likelihoodofprospectivecustomerstopurchaseapolicy)showingimprovementstoanall-timehigh.GoingforwardstrengthoftheBSLIbrandisexpectedtobecomemoreimportantandwecontinuetostrengthenourbrandperformancethroughanoptimalmixofabove-the-lineandbelow-the-lineactivities.

Outlook for the Industry and Company

Since the introduction of significant regulatory changes, there has been a perceptible slowdown in sales. However, this has given anopportunitytotheexistinginsuranceplayerstoreviewtheiroperatingmodelstodrivehigherefficienciesandfocusonmorebalancedgrowthobjectives.

Generalmarketconditionshavebeendifficultforsaleoflifeinsurancesavingsproducts.Factorsincludedhighinterestrates,highinflationrates, and strength in gold and real estate. However, recent easing of inflationary trends and bearish trends in gold and real estateshouldaugurwellfortheindustry.Indiaalreadyhasseveralstructuraladvantagesintermsoffavourabledemographicsandhighrateoffinancialsavings.Certaintyofregulation,improvingmacro-economicenvironment,andnewproductofferingsarelikelytoenhancegrowth andprofitability.

TheCompanyhasidentifiedthefollowingkeyareastostrengthenitscompetitiveandfinancialpositioninthecomingyears: • Growthinprofitability • Growthinsaleswhilemaintainingbalancedchannelandproductmix,andoptimisingdistributionmanagement • Betterexpenseefficiencies • Improvepersistencyandclaimsmanagement

3. RESERVES Duringtheyear,theCompanygeneratedprofitaftertaxof`371crores,leadingtoareductioninaccumulatedlosses.(Dividendandtaxon

Dividendisconfusing.)

4. DIVIDEND DuringtheyearunderreviewyourBoardofDirectorsrecommendedDividend@3.68%(`0.368perequityshareof` 10 each) of the paid

up capital of the Company of ` 19,012,000,000.

5. BSLI CLAIMS MISSION FOR ITS POLICYHOLDERS: To provide hassle-free, seamless and speedy claim settlement services to our Customers and ensure prompt payment of

valid claims.

In the recently published IRDA Annual Report for FY12-13, BSLI Claims ratios as at March 2013 are as shown below:

Key Claims Parameters – Individual Life BSLI’s PerformanceAvg. Private Industry -

Performance

Death Claims decided 95.50% 96.53%

*Outstanding Claims 4.50% 3.47%

ClaimsPaymentRatio 82.55% 88.65%

OverallClaimsRepudiationRatio 12.95% 7.85%

%ofClaimssettledwithin30daysofClaimIntimation 77.56% 79.54%

The insurance landscape in India has undergone tremendous changes in the last three years.

AlllifeinsuranceplayersarefacingfraudsthroughorganisedcartelsacrossvariouslocationspanIndia.BSLIbeingaleadingplayerwithpresenceacrossallgeographiesalsoexperiencedthepressuresof frauds.BSLIhasbeenvigilantandrejected invalidclaims leadingtohigherrepudiationratios.BSLIpracticesaZerotolerancepolicy towardsfraudshasundertakenseveralcorrectivestepstoaddressthistroublingtrendwithoutadverselyaffectinggenuineclaims.Adetailedagendahasbeenworkedouttoreducefraudandmonitorthetrends.

AsafirststepBSLIabledemarcated60locationsacrossIndiawhichshowedhighervulnerabilitytothesefrauds.Inaddition,BSLIputinplacehaveathreepointactionplantocontrolfraudsgoingforward.Firstly,segregate,scrutiniseandselectcustomerswithutmostcautionbyrevisingunderwritingcriteria.Secondly,drilldownadverseexperiencetothelevelofadvisorsandaddressrootcauseswherepossible.Thirdly,punitiveactionagainstfraudsterstoactivelydetersuchbehaviour.

WereiteratetoourcommitmenttoourloyalCustomers.WewillalwaysdisplaythroughouractionanddeedsthatourCustomers’interestprecedesanythingelse.WewillcontinuetobethecustodiansofourCustomers’trustandwethankthemforchoosingusastheirLifeInsurerof choice.

BSLIreinforcesitsunstintedintentandcommitmentofpayingeveryvalidclaim.

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Birla Sun Life Insurance

Directors’ Report

6. SHARE CAPITAL The Authorised Share Capital of the Company is `3,750crores.TheIssued,SubscribedandPaidupCapitaloftheCompanywas` 1,901

crores,asonMarch31,2014.Therewasnorequirementoffreshcapitalinfusionduringtheyearunderreview.

7. CORPORATE GOVERNANCE YourDirectorsreaffirmtheircommitmenttothecorporategovernancestandardstotheextenttheyareapplicabletotheCompany.Adetailed

CorporateGovernanceReportisannexedtoandformsanintegralpartofthisAnnualReport.

8. SUBSIDIARIES YourCompanydoesnothaveanysubsidiary.

9. PUBLIC DEPOSITS DuringFY13-14theCompanyhasnotacceptedorrenewedanydepositascoveredunderSection58AoftheActreadwiththeCompanies

(AcceptanceofDeposit)Rules,1975,asamended,fromthepublicduringtheyearunderreview.

10. PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956 Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

TheinformationrelatingtotheconservationofEnergy,TechnologyAbsorptionandForeignExchangeEarningsandOutgorequiredunderSection 217(1)(e) of the CompaniesAct, 1956 (“theAct”), is set out in a separate statement attached to this report asAnnexure to this Report.

Details of Employees

In pursuance of the Company’s aspirations to maintain its position as the most preferred employer in the insurance industry, the Company continuedtoinvestincreatingapooloftalentforthegrowingbusinessneeds.TheCompany’stotalworkforcestoodat9,732asatMarch31,2014against11,604asofthepreviousyearend.Structuredinitiativesaroundtalentmanagement,learninganddevelopmentandlong-termretentionplanfortalentpoolacrosslevelswereimplementedforskilldevelopmenttoenhanceproductivityandperformanceofworkforce.

InaccordancewiththeprovisionsofSection217(2A)readwithCompanies(ParticularsofEmployees)Rules,1975,asamended,thenamesandrelevantparticularsofemployeesaresetoutasanAnnexuretotheDirectors’Report.

11. DIRECTORS AsonMarch31,2014,yourBoardofDirectorscomprisesofelevenDirectorsincludingthreeIndependentDirectors.

During the year, following were the changes in directorship of the Company: • Mr.JayantDuaresignedasManagingDirector&CEOoftheCompanyw.e.f.December31,2013. • SubjecttotheapprovaloftheShareholders,Mr.PankajRazdanhasbeenappointedasManagingDirector&CEOoftheCompanyw.e.f.

January1,2014.

In accordancewith theprovisions ofSection152of theCompaniesAct, 2013,Mr. KumarMangalamBirla, andMr.DonaldA.Stewart,Directors, retire by rotation at the ensuing Annual General Meeting (‘AGM’) of the Company, and being eligible, offer themselves for re-appointment.

TheCompanyhasreceivedrequisitedisclosuresandundertakingsfromalltheDirectorsincompliancewiththeprovisionsoftheCompaniesAct, 2013 and the Insurance Act, 1938.

AdetailedprofileoftheDirectorsseekingappointmentattheensuingAnnualGeneralMeetingoftheCompanyisgivenintheCorporateGovernanceReport,formingapartofthisAnnualReport.

12. DIRECTORS’ RESPONSIBILITY STATEMENT TheDirectorswouldliketoassurethemembersthattheFinancialStatements,fortheyearunderreview,conformintheirentiretytothe

requirementsoftheCompaniesAct,1956andtheregulationsofIRDA.

TheDirectorsfurtherconfirmthat,tothebestoftheirknowledgeandbelief: • the annual accounts have been prepared in accordancewith applicable accounting standards, and there have been nomaterial

departures from the same; • theyhaveselectedaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableand

prudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompany,asattheendoftheFY13-14andoftheprofitoftheCompany for the said period ending March 31, 2014;

• theyhavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,1956forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;and

• theyhavepreparedtheaccountsoftheCompanyonagoingconcernbasis,andotheraccountingpoliciesarestatedinthenotestotheAccounts, which form an integral part of the annual accounts.

• propersystemsareinplacetoensurecomplianceofalllawsapplicabletotheCompany. • allrelatedpartytransactionsaredisclosedinAnnexure2toSchedule16intermsofAccountingStandard18.

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Directors’ Report

13. AUDITORS AND AUDITORS’ REPORT Statutory Auditors

AspertheCircularno.36/7/F&A/EMPL/74/July/05datedJuly25,2005oftheInsuranceRegulatoryDevelopmentAuthority,everyinsurancecompanyisrequiredtohavetwostatutoryauditorsforajointaudit.

TheJointStatutoryAuditorsM/s.KhimjiKunverji&Co.(RegistrationNo.105146W)andM/s.S.R.Batliboi&AssociatesLLP(RegistrationNo.101049W),appointedat13thAGM,holdofficeuptotheensuing14thAGMoftheCompany.TheBoardproposestore-appointM/s.KhimjiKunverji&Co.andM/s.S.R.Batliboi&AssociatesLLPastheJointStatutoryAuditors(beingeligibleforre-appointment)onrecommendationof the Audit Committee of the Company.

The Company has received certificates from the proposed auditors confirming their eligibility and willingness for their appointment/ re-appointmentpursuanttoSection139(1)oftheCompaniesAct,2013andaspertherequirementstipulatedbyIRDA.TheauditorshavefurthercertifiedthattheyhavesubjectedthemselvestothepeerreviewprocessoftheInstituteofCharteredAccountantsofIndia(ICAI)andtheyholdavalidcertificateissuedbythe“PeerReviewBoard”ofICAI.

The observations, if any,made by the StatutoryAuditors of the Company in their report readwith relevant notes to theAccounts are self-explanatoryand,thereforedonotcallforanyfurthercomments.

Internal Audit Framework

TheCompanyhasinplacearobustinternalauditframeworkdevelopedwithariskbasedauditapproachthatiscommensuratewiththenatureofthebusinessandthesizeofitsoperations.

The Company has awell documented and approved InternalAudit Charter that establishes the purpose, authority and responsibilitiesconferred by BSLI on the Internal Audit area, with respect to the carrying out of internal auditing duties.

Ithasbeenpreparedinordertosupportaneffectiveinternalauditservice,consistentwiththeInternationalStandardsfortheProfessionalPracticeofInternalAuditingofTheInstituteofInternalAuditors.

Theinternalauditactivityinvolvestheutilisationofasystematicmethodologyforanalysingbusinessprocessesororganisationalproblemsandrecommendingsolutionstoaddvalueandimprovetheorganisation’soperations.

Theinternalauditactivityevaluatestheadequacyandeffectivenessofcontrolsinrespondingtoriskswithintheorganisation’soperationsand information systems regarding the:

• Reliabilityandintegrityoffinancialandoperationalinformation

• Effectivenessandefficiencyofoperations

• Safeguardingofassets

• Compliancewithlaws,regulations,policies,proceduresandcontrols.

Aspertheriskbasedauditplan,reviewofcontrolsisundertakenthroughexecutionofprocessauditsatheadofficeandspecificprocessreviewsandauditsacrossvariousbranchesof thecompany.Theauditsarecarriedoutby independentfirmsofCharteredAccountants, in-house internal audit team and audit teams of the two promoters.

KeyauditfindingsandrecommendationsmadebytheAuditorsarereportedtotheAuditCommitteeeveryquarterandtheimplementationoftheserecommendationsareactivelymonitoredbyinternalauditandperiodicallyreportedtotheAuditCommittee.

14. RISK MANAGEMENT FRAMEWORK TheCompanyhasanEnterpriseRiskManagement(‘ERM’)frameworkcoveringprocedurestoidentify,assessandmitigatethekeybusiness

risks.AdetailedERMreportisannexedtoandformsanintegralpartofthisAnnualReport.

15. CUSTOMER GRIEVANCE REDRESSAL The Grievance Redressal Guidelines issued by IRDA has established uniformity in the insurance industry in terms of definitions,

timeframes for complaint resolution and classifications of complaints. In accordancewith theGrievanceRedressal Guidelines, BSLI’sGrievanceRedressalPolicyhasbeenapprovedbytheBoardandfiledwiththeIRDA.GrievanceOfficershavebeenappointedateachbranchand at HO of the Company.

WehaveinplaceaPolicyholders’GrievancesRedressalCommittee(‘PGRC’)whichisheadedbyanindependentChairmanMr.N.N.Jambusaria(ex-Chairman,LIC).PGRCmeetsatleastonceamonthanddecidesonvariousrequests/complaintsfrompolicyholders.Representativesoftheconcernedsaleschannelsalongwithcustomerserviceteamareinvitedtoattendthemeetings.ThedecisionsofPGRCareimplementedbeforeitssubsequentmeeting.

InaccordancewithIRDA’sCorporateGovernanceGuidelines,BSLIhasformedaCommitteecalledthePolicyholders’ProtectionCommittee,whichisalsochairedbyMr.N.N.Jambusaria.ThisCommitteelooksintothebroadaspectsofprotectionofpolicyholders’interests,ensuringadequacy of and adherence to the Company’s Grievance Redressal framework as well as ensuring adequate and correct disclosures to customers.

Initiativestospreadawarenessamongemployees/salesforceaswellascustomershavebeenundertakenthroughe-modules/functionaltrainingsandthroughtheBSLIwebsiterespectively.

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GrievancesreceivedbyBSLIarereportedon‘IntegratedGrievanceRedressalManagementSystem’(IRDA-IGMS)onlineandareversefeedalso gets downloaded for complaints registered by customers on IGMS against BSLI.

TocreatecustomerawarenessabouttheGrievanceRedressalMechanism;wehaveplacedpamphletsateveryfront-office/customerwalk-inareaacrossBSLIbranches,indicatingtheGuidelinesandtheEscalationMatrix,whichthecustomercanfollowincaseifhe/sheisnotsatisfiedwiththeresolutionprovided.

GrievanceRedressalteamhasbeenempoweredtotakedecisionsforensuringeffectiveresolutionofcustomercomplaints.

16. AWARDS/RECOGNITIONS Birla Sun Life Insurance (BSLI) has won the following awards during FY14:

• BirlaSunLifeInsuranceattainedrecognitionasthe‘ThirdMostTrustedLifeInsurer’intheannualMostTrustedBrandsSurvey2013byBrandEquity(TheEconomicTimes).

• BSLIwasawardedfor‘OutstandingCustomerService’attheLifeInsuranceAwards,2013conductedinthe2ndIndianPensionFundCongress 2013.

• The4thCIINationalHRExcellenceAward2013recognisedBSLIinthecategoryfor‘StrongCommitmenttoHRExcellence’.

• BSLI won for the third consecutive year the Gold trophy for financial reporting from The Institute of Chartered Accountants of India (ICAI).

• TheCompanyhasthehonourofreceivingthe‘CXOAwardforITLeadership’byAsiaInsuranceReviewandCelent,asalsotheCelentAsia‘ModelInsurerAward’forexcellenceinanalytics.

• BSLIearnedrecognitionforthefourthconsecutiveyearattheEffiesforthebestfinancialservicesmarketingcampaign.EffiesistheIndianchapterofEffiesInternationalthatrecognisesmarketingcampaignsfortheiroveralleffectiveness.

• AttheMidasAwards2013,theCompanywontheGrandMidas,thehighesthonouracrosscategoriesandnationalitiesandtwoGoldMidasAwards.TheMidasAwards,NewYorkistheonlyinternationalawardthatrecognisesexcellenceinfinancialadvertisingandmarketingbyevaluatingworksfromacrosstheglobe.

• BSLI’sProtectionCampaignwasawardedtwoBronzesattheDMAi2013,thesingularforuminIndiainstitutedbyDMAinternationalECHOhonoringdirectmarketingcampaignsforexcellenceindirectresponsestrategy,creativityandresults.

• Exchange4mediaPRAwards2013,anexhaustiveawardsrecognisingsuccessinPublicRelationsjudgedBSLI’sWealthwithProtectionCampaign as the winner in the ‘Crisis Management’ category.

• BSLI’sRetirementSolutionsCampaignwonaSilverattheEmvies2013,theonlyawardinIndiathathonoursmeasurablecontributionsinthefieldofmedia.

• TheCompanywasalsoawardedaGoldandaBronzeattheExchange4mediaOOHAwards,2013andaSilverattheOutdoorAdvertisingAwards2013forOOHinnovationsinBSLI’sProtectionCampaign.

17. OTHER STATUTORY INFORMATION IRDA License

TheInsuranceRegulatoryandDevelopmentAuthorityhaverenewedtheCertificateofRegistrationoftheCompanytoselllifeinsuranceproductsinIndiafortheFY13-14videitsCertificateofRenewalofRegistrationdatedFebruary15,2013.Therenewedregistrationisw.e.f.April01,2013andisvaliduptoMarch31,2014.

Statutory Disclosure of Particulars

ParticularsintheCompanies(DisclosureofParticularsintheReportoftheBoardofDirectors)Rules,1988,asapplicable,aregivenintheAnnexureformingpartofthisReport.

Management Report

PursuanttotheprovisionsofRegulation3oftheInsuranceRegulatoryandDevelopmentAuthority(PreparationofFinancialStatementsandAuditors’ Report of Insurance Companies) Regulations, 2000, the Management Report forms a part of this Annual Report.

Appointed Actuary’s Certificate

ThecertificateoftheAppointedActuaryisattachedtotheFinancialStatements.

Certificate from Compliance Officer (under the IRDA Corporate Governance Guidelines)

Incompliancewith“GuidelinesonCorporateGovernancefortheInsuranceSector”(CGGuidelines)issuedbyIRDA,aComplianceCertificateissuedbytheCompanySecretary,designatedastheComplianceOfficerunderCGGuidelines,isattachedtoandformspartoftheCorporateGovernanceReport.

Solvency Margin

The Directors are pleased to report that the assets of the Company are higher than the liabilities of the Company and the assets are more thansufficienttomeettheminimumsolvencymarginlevelof1.50times,asspecifiedinSection64VAoftheInsuranceAct,1938readwiththeIRDA(Assets,LiabilitiesandSolvencyMarginofInsurers)Regulations,2000.

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18. ACKNOWLEDGEMENTS YourBoardplacesonrecorditsheartfeltappreciationtothededicatedeffortsputinbytheemployeesatalllevels.Theresultsoftheyearin

atoughenvironmentaretestimonytotheirhardworkandcommitment.

YourBoardtakesthisopportunitytoexpresssincerethankstoitsvaluedcustomersfortheircontinuedpatronage.

YourBoardalsoacknowledgesthecontributionofinsuranceadvisors,banks,corporatebrokers/agentsandintermediaries,traininginstitutes,bankersandbusinessandtechnologypartners,theRegistrars,NationalSecuritiesDepositoryLimited/CentralDepositorySecuritiesLimited,reinsurers,underwriters,whohavealwayssupportedandhelpedtheCompanyachieveitsobjectives.

Your Board would like to thank the Aditya Birla Group and Sun Life Financial, Inc., for their constant support, guidance and co-operation.

YourBoardwouldalso like toexpress itsgratitude for thevaluableadvice,guidance,andsupport received from time to time from theInsuranceRegulatoryandDevelopmentAuthority,theReserveBankofIndia,theAuditorsandtheotherstatutoryauthoritiesandlookforwardto their continued support in future.

By order of the Board of DirectorsFor Birla Sun Life Insurance Company Limited

Sd/-Kumar Mangalam Birla

Mumbai, 25th April, 2014 Chairman

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ANNEXURE TO THE DIRECTORS’ REPORT ParticularspursuanttotheCompanies(DisclosureofParticularsintheReportofBoardofDirectors)Rules,1988,arefurnishedhereunder:

A. CONSERVATION OF ENERGY :NotApplicable

B. TECHNOLOGY ABOSORPTION, RESEARCH & DEVELOPMENT (R&D)

1. SpecificareasinwhichR&Discarriedout by the Company

1. MySolutions – Empower@Ease: Offering customers tailor-made insurance solutions with combination plans for goals-

based savings.This is augmented by a unique technological platform that allowssalesforcetoassessfinancialneedsofthecustomerandbasisthat,offertherightcombinationofproducttoachievethosegoalsinthegiventimeframe.

2. Easy Protect: First on line protection plan throughAssistedmode.Advisors and Sales Force are

abletocompletetheendtoendSalesProcessonlineincludingQuotationGeneration,ApplicationFormFilling,PremiumPaymentanduploadofKYCdocuments.

3. Test Automation: Introductionofanautomatedtestingtooltoreducetheexecutiontimeoftestcases

and increasetestingaccuracy.The implementationresulted insignificantsavingofman-hours.Additionallyitresultedinbettertest-execution,increasedtestcoverageand faster time to market for new product launches.

2. Benefitsderivedasaresultofthe aboveR&D

1. MySolutions – Empower@Ease: • Total589combosolutionssoldtilldatewithanAnnualPremiumof` 3.6 Cr • MySolutionscanbeaccessedbySalesForce fromLaptop/Desktopaswellas

Android tablet. • Hindiversionalsolaunchedfor2solutions

2. Easy Protect: • Total4,648applicationslogged|Premiumpaying=3,253

3. Test Automation: • Savingofapprox.4000hoursbyusingthistoolonthePolicyIssuanceprojects • Savingofapprox.1000hoursbyusingthistoolonaPolicyAutomationproject • Savingofapprox.31hoursforfourNewProductlaunches • Increasedaccuracyoftestingascomparedtomanualtesting • Bettertest-executionandincreasedtestcoverage • Fastertimetomarketfornewproductlaunches

3. FuturePlanofaction 1. MySolutions – Empower@Ease: • Mobileversiontobelaunchedsoon(expectedinApril). • Thissolutiontobealsolaunchedin6regionallanguages.

2. Easy Protect: • ThisproducttobemadeavailablefromBSLIwebsiteandcustomerswillbeable

to buy this policy online.

3. Test Automation: • ImplementationofthistoolfortestingofprojectsotherthanIngenium.

4. ExpenditureonR&D

a) Capital Approximately` 10 Mn (for items no 1 & 2)

b) Recurring Approximately` 0.8 Mn (for items no. 1 & 2)

c) Total Approximately` 10.8 Mn (for items no. 1 & 2)

d) TotalR&Dexpenditureasapercentageoftotalturnover

N.A.

Technologyabsorption,adaptionandinnovation

1. Efforts, in brief, towards technology absorption,adaptionandinnovation

1. KnowledgeManagementPortalforCustomerService2. SelfServiceoptionsthroughIVR,Website3. DisasterRecovery4. 360DegreeCustomerViewforcallcenters5. CXODashboardandotherMISautomation6. ZonalEmpowermentforPolad(AddressChange,Withdrawal&SurrenderProcesses)7. Microsites for the sales force8. De-dupe for Micro Insurance9. Hirecraft–Straight-throughprocessingofnewjoineesatbranches

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2. Benefitsderivedasaresultoftheaboveefforts(e.g.,Productimprovement,costreduction,productdevelopment,importsubstitution, etc.)

Benefits derived from major initiatives: • KM for CS: Advanced Knowledge Portal offering advanced Search capability;

active spell checkon the searchengine; quick access links oneachpage forfrequentlyaskedinformation;newOnlineChatsystemtohelpyouconnectwiththeprocessexperts;easyaccesstoVideogallery;andmanymore

w First call resolution (FCR) rose from 91% in Jan’13 (before launch of the KMportal)to94.5%inSep’13postlaunch

w Pageviews:just7kinJan’13tostaggering80kinSep’13

• Self service:Simpler,faster,andconvenientaccessofpolicydetailstocustomersandcostsavingforthecompanyduetoreductionincallvolumeandnumberofFTE’s

w Selfhelpusageimprovedfrom8%inApr’13to22%inDec’13 w Savingsof4FTEscosts

• DR:ExtensionofdisasterrecoverysystemsforcriticalsystemssuchasOracleFinancials,Talisma,andAPM–ensuringoptimumbusinesscontinuityintheeventof a disaster

w CompletedforTalisma,OracleFinancials,andAPM w WillbecompletedsoonforExchangeserverandBSLImainWebsite

• 360 Degree:Asingleviewofcustomerincludinghispolicy,fund,nomineeandotherdetailsandallhisinteractionswiththecompany,includingqueries,servicerequestsandcomplaints.Comprehensivetooltobeusedbyallfunctionsintouchwith the customer

w Currentlybeingactivelyusedbythecallcentres w Organisation-wideimplementationplannedinQ2

• CXO Dashboard and MIS:AutomationofvariousMIS’sfromthecentralsysteminordertoavoidmanualworkanderrorincompilingandreportingthedata

w SpeciallydesignedDashboardstobevisibleoniPadfortheCXO’s

• Zonal empowerment:AutomationbydecentralizationofPolicyServicingrequestscomingatbranchesandhenceaimingto improveprocessingtimeandreducemanpowerrequiredatcentraloffice

• Microsites: Dedicated website for top performing sales force personnel, highlightingtheirprofile,accomplishments,etc.

w 15profilesuploadedandmoretofollow

• De-dupe:De-duplicationofClientdata for‘Unique’ recordand Increase in theaccuracy of the customer data leading to accurate underwriting/risk assessment

w Completed for micro insurance w Initiated for Ingenium

• Hirecraft:Straight-throughprocessingofnewjoineesatbranches w Launched for both FLS and non-FLS

3. Particularsofimportedtechnologyinthelastfiveyears(reckonedfrombeginning ofthefinancialyear)

a) Technology imported NA

b) Year of import NA

c) Has technology been fully absorbed NA

d) If not fully absorbed, areas where this has not taken place, reasons, therefor and future plans of action

NA

C. FOREIGN EXCHANGE EARNINGS AND OUTGO 1. Earnings Nil

2. Outgo 1,750,491,334

Directors’ Report

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Management Discussion and Analysis

INDIAN ECONOMY & LIFE INSURANCE INDUSTRYTheIndianeconomyhaswitnessedrobustgrowthoverthelastdecadeonthebackofattractivedemographics,increasingincomelevelsandrisinghouseholdsavings.However,postthe2008Globalcrisis,thegrowthrateofIndianeconomywitnessedaslowdown,withtheGDPgrowthat~5per cent towards the end of FY14.

Table 1: Key Economic Indicators impacting Insurance

Particulars FY10 FY13 FY14 ECAGR %

FY10-FY13

NominalGDP(INRBn) 60,816 100,281 104,728 15%

RealGDPGrowth(%) 8.40% 5.00% 4.70%

Grossdomesticsavings(%) 33.70% 30.80% ~32.00% -1.3%

HouseholdSavings(%) 25.40% 22.3% ~24.0% -1.4%

FinancialSavingsas%ofGDP 12% 8% ~10% -4.5%

Physicalv/sFinancialsavings%

Physical(%) 52% 60% ~70% 8%

Financials(%) 48% ~40% ~30% -11%

Source: RBI Annual Report, RBI Report on SavingsThegrowthrateofIndianeconomywitnessedaslowdowninFY14,withtheGDPgrowingat5percentdownfrom6.5percentinFY12.However,recenteasingofinflationandsofteningingoldandrealestatepricesisexpectedtoaugurwell.Further,withthenewgovernmentcomingwithaclearmajority,marketsentimentshaveimprovedasthecountrywillseeastablegovernmentandeconomyisexpectedtopickuppaceinthecoming years.

LIFE INSURANCE INDUSTRY STRUCTURE, PERFORMANCE & TRENDIndustry Structure and Competitive Position Overview

• TheliberalizationoftheIndianinsurancesectorthatstartedin1999usheredintheentryofprivateplayersandaperiodofacceleratinggrowth. Currently, the industry has 24 playerswhich have led to awide distribution network extending to over 10,900 branches and over~2.1millionadvisorsinadditiontobancassuranceandotherthirdpartydistributionchannel.

• Thegrowthof the insurance industry,post thesectorbeingopenedup forprivate industry,canbebroadlydivided into twocompletelydifferent phases- the pre-economic downturn phase – from FY03 – FY08; and the post economic downturn phase. The difference between thetwoisquiteevident,whencomparedfromdifferentdimensions.TheAnnualizedNewBusinessPremium(ANBP)forthesectorasawholegrewalmostfivetimesduringthefirstphase,buthasbeenvirtuallyflatinthelatter,asaresultofwhichthelife-insurancepenetrationwhichhadincreasedto4.2%inFY08(FY03–2.4%),fellbackto3.2%inthesecondphase.

• ThereasonsfortheIndustry’sweakperformancehasbeenduetoaninter-playofvariousvariablesoverthepast3-4yearswhichincludes ² Relativelyweakmacroeconomicconditions; ² Regulatory changes ² Shiftinproductmix ² UncertaintyaroundNewProductlaunches• Withregardstothemarketstructure,LICmarketsharehasincreasedfrom53%inFY10to63%inFY14.Thetop7players’concentration

ofthetotalmarketsharehoweverhasdeclinedfrom37%inFY10to27%inFY14basistotalweightednewbusinesspremium.Thisclearlyindicatesthatprivateplayers,particularlythetop7players,havebeenimpactedmorebytheregulatorychanges.Giventheirdistributionandbrandstrength,thetop7playerswillhoweverbeinabetterpositiontogainhighermindsharewiththeirtransitionintoamorebalancedproductmixandreviewofdistributionstrategies,especiallyaftertheOctober2013regulations.

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Management Discussion and Analysis

Concentration of LIC, Top Seven Players and others in terms of Total Weighted NBP

63%

10%

53%

37%

10%

59%

31%

10% 10%

60%

30% 27%

10%

65%

25%Top 7 Players

LIC

Other Players

2010 2014201320122011

At the end of the year under review, BSLI’s market share stood at 7.6% among private players, last year: 8%. BSLI has transitioned well in terms of its product strategy and has launched several products to have a balanced suite of participating, non-participating and Unit linked products complying with the new norms. These initiatives will go a long way in increasing its market competitiveness.

INduSTry PerformaNCe for fy14

Following the various regulatory developments, the industry has seen perceptible shift in product mix towards traditional participating products. In the past, the industry has seen three wave of changes; 1) First wave was towards unit linked products. 2) After the introduction of cap on commission payable on unit linked products, the industry saw a major shift in favour of traditional products, including non-participating products.; and 3) After the recent regulatory change in October 2013, the wave has shifted towards a higher mix of traditional participating products.

After the October 2013 regulations, the industry saw a decrease in its new business growth, as the new guidelines on products required all insurance companies to comply with new norms including minimum guarantee benefits, enhanced sum assured and minimum policy term apart from restricting certain product guarantees around non-participating index linked and High NAV products. The industry saw insurance companies launching new products to have a balanced suite of Unit Linked, Participating as well as Non-Participating products complying with new norms.

As a result of the subdued macro-economic conditions coupled with regulatory changes regarding traditional products the industry registered a 3% Y-o-Y de-growth in FY14. The sales trend for industry is provided in the below table. The private sector companies in FY 14 are writing 60% of the new business they wrote In FY 10.

Table 2: Life Insurance Premium at Industry level

Particulars (INr Bn) - Individual Life fy10 fy11 fy12 fy13 fy14

Life Insurance NB Premium (incl. LIC) 550 504 479 470 454

Growth (%) 17% -8% -5% -2% -3.0%

LI NB Premium (Pvt. Players only) 288 230 175 178 172

Growth (%) 7% -20% -24% 2% -3%

Source: IRDA New business Data.

Industry Trend

While the new business sales performance was impacted across the industry, there have been several trends that the industry has seen over the last 12-18 months. This included the evolving product mix, changing channel dynamics and increasing focus on balanced product mix.

• TheIndustryhastakenmultiplestepsoverthepast3-4yearsinordertoovercomethechallenges,whichareexpectedtoyieldpositiveresults once the macro-economic environment sees an improvement. The steps taken by the industry include:-

² Rationalization of sales force – The sales force in Agency Channel has been streamlined to a more leaner and effective structure

² Cost optimization by both reduction in the number of branches and by expense management

² Tapping new opportunities like digital channel and accordingly adapting the products and pricing structures to offer increased choice to customers.

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Management Discussion and Analysis

• Channel Mix: The Bancassurance channel has been able to adapt better to the new regulations regime and its contribution in the new businesshasbecomeatparwiththeAgencyChannel in the IndividualNBP(41%share inprivate Industry inFY13from25%inFY11). Thebankbackedplayersasaresulthaveconsistentlybeenaheadoftheirpeersintheindustry.

• Product Mix:Withregulatorychanges,theindustryhasseenashifttowardssellingmorelongtermsavingsproductsonthetraditionalplatform.ULIPcontinuestosellmoreinBancassurancechannelandinHNIsegments.TheOthertrendwhichisvisibleisthepickupofpurerisk products i.e. Term Insurance on the digital platform.

• Quality:Giventheincreasedfocusonnewcustomeracquisitionandimportanceofrenewalpremiums,therehasbeenanincreasedfocusonqualityofbusiness.Thisincludesmanagingpersistency,surrendersandcustomercomplaints.

REGULATORY & STATUTORY CHANGES IMPACTING INDUSTRY TheInsuranceRegulatoryandDevelopmentAuthority(IRDA)notifiednewguidelinesondesignoflifeinsuranceproductswhichwasmadeeffectivefromOctober2013(October2013regulations).Asperthisguideline,allexistingproductswerewithdrawnandtheinsurancecompanieshadtolaunch(orre-fileexistingproducts)complyingwithnewnorms.Listedbelowaresomeoftheregulatorychanges:

• Insurance Products have been categorised on three broad categories:Thenewguidelineshaveintroducedthreebroadcategoriesofproductsviz.Traditionalinsuranceplans,variableinsuranceplans(VIPs)andunit-linkedinsuranceplans(ULIPs).

² Traditional Insurance Plans:Thisinsuranceplanswillhavetwovariantsviz,Participatingandnon-participatingplans.Forparticipatingpolices the bonus is linked to the performance of the fund and is not declared or guaranteed before whereas in case of non-participating policies, the return on the policy is disclosed in the beginning of the policy itself.

² Variable Insurance Plans:VIPswillguaranteeacertainminimumrateofreturnatthebeginningofbuyingapolicy—thoughtheyarelinkedtoanindex.Inthecaseofanon-participatingVIP,theadditionalbenefitwillbementionedatthetimeofbuyingthepolicyandmayaccumulateinthepolicyatspecifiedintervalswhereasParticipatingVIPsnormallyprovidearegularnon-guaranteedbonus,whichwill be guaranteed once declared.

² Unit Linked Insurance Plans:IncaseofULIPs,lifeinsurerswillnowhavetoinformpolicyholdersofthereductioninyieldoftheirULIPsonamonthlybasis.Insurerswillalsoissueannualcertificatesmentioningthepremiumspaid,chargesandtaxesdeductedfromthefundvalueandthefinalpaymentsmade.

• Cap on Commission Payouts: Inorder toencouragesavingsand in thespiritofselling large tenurepolicies, thenewguidelineshavereducedcommissionsonshort-termpoliciesandhavelinkedthequantityofcommissionstothepremiumpayingperiodforallproducts.Incaseofdirectsaleofproducts,suchastheonlinemode,theregulationsrequirenocommissionpayoutsoastopassonthisbenefittothepolicyholder.

• Minimum Death Benefit and increased sum assured:Thenewregulationshaveincreasedtheminimumdeathbenefitpayableandhavealsoincreasedtheminimumguaranteedsurrendervalue.

• Minimum Surrender Value: Thenewregulationshaveincreasedtheminimumguaranteedsurrendervaluefortraditionalplans.Forplanswithapremiumpaying termof10yearsormore, therewillbeaguaranteedsurrendervalueafter threeyearswhereas forplanswith less than10 yearspremiumpaying term, theguaranteed surrender value shall accrueafter the second year andwill be30%of totalpremiums paid.

Opportunities

WebelievethatthefollowingtrendscharacterizetheIndianeconomyandaugurswellforthelifeinsuranceindustry:

• Economic growth & Demographics trend to support premium growth

Theeconomyisprojectedtobebackongrowthtrack.ThiscoupledwithfavourabledemographicswilldriveLifeInsurancepremiumgrowthforthenext3-5years.

• Lower per capita insurance and penetration

TheIndianlifeinsuranceindustryhasexpandedsignificantlyintermsofpremiumssinceliberalizationin2000.However,itstotalpremiumcollectiontoGDPratioandpercapita insuranceissignificantly lowerthanthedevelopedcountries. Itcanbearguedthatnewbusinesspremiumasa%ofGDPstandsatahealthy3.17%(CY12)howevertheactualpenetrationofinsuranceshouldbebasedoninsurancedensity.Looking at insurance density in the below table, it is one of the lowest in the world at $42.7 with insurance policy per person being one of the lowest across the world.

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Management Discussion and Analysis

Insurance Premium Per Capita (Density) and Penetration

Country Population (Mn) Premium per capita (USD) Insurance Penetration (%)

HK 7.1 4024.7 11.02

India 1216.5 42.7 3.17

China 1355.2 102.9 1.70

Philippines 93.8 23.3 0.9

Indonesia 232.8 45.8 1.24

SouthKorea 48.9 1578.1 6.87

Canada 33.9 1493.4 2.85

USA 310.2 1808.1 3.65

Source: Swiss Re Sigma Report (world Insurance in 2012)

• Increased distribution penetration

There is significant opportunity to increase the distribution reach within the country. For example, Bancassurance, brokers and otheralternativechannels(Tele-salesandonline)arestillatadevelopingphaseinIndia.Thesechannelswillbringinnewopportunityanddrivehigher share of spending on insurance products by customers.

• Customer segmentation

There isanopportunity toexploreunderpenetratedandunderinsuredsegments includingretirement/health.Thereareseveralproduct /customersegmentsinIndiathatareverysmallalthoughtheyhaveahighpotentialtogrow.Forexample,onlyabout15%oftheworkingpopulationiscoveredunderretirementplans.Penetratinginthesesegmentswillbringinmoreavenuesforinsurancecompaniestopenetratetheir customer base.

• CustomerService

Thenewregulationsrequirestandardisationofproducts,andhencecustomerservicehasgainedmoreprominence,asaleverofdifferentialofferingstoitscustomers.Thiswillenableinsurancecompaniesretainitsexistingcustomerbaseandimprovepersistency,whichinthemediumtolongrunwillhaveapositiveimpactonitsprofitability.

• Embracing Digital Media

Theindustryhasbeenmakingrapidstridesinadoptingdigitalchannelsacrossthevariousfacetsofoperations.Technologyisplayingacriticalroleinsalesenablement,productivityimprovement,marketing&distribution,customerserviceetc.Fasteradoptionoftechnologywillmakeasignificantimprovementindeliveryofcustomerpropositionandatamuchcheapercost.

In our view, the long-termgrowth prospects remain robust for the life insurance industry in viewof compelling structural anddemographicadvantageswhichIndianeconomyenjoys.However,theprogressiontoamorematuremarkethasbeenacceleratedbyvariousregulationswhichare unprecedented compared to other markets.

BSLI iswellpositioned tomeet thechallengesandalso tap into theopportunitiesof the life insurance industry.TheCompany isexpected to emerge stronger on the back of itswide distribution franchise, a successfulmulti-channel strategy, a long history of product innovations&operationalefficiency.

SUMMARY OF OPERATIONSSales Performance Review & Market Share Movement

AsofMarch31,2014,BSLI’snationwidereachencompassed560branches,anagencyforceofover81,500empanelledagents,tie-upswitharound 150 non-bank corporate agents, brokers & business associates and 4 key bank partners.

Balanced growth:Diligentexecutionofourbusinessstrategydrovesalesperformanceacrossarangeofproductsanddistributionchannels.

• AgencychannelcontinuestobetheCompany’slargestdistributionchannelcontributingtoovertwothirdofourindividualbusinesswithnewbusiness premium of `569crores.InFY14,thekeyfocusforthischannelwasmovingtowardsamorebalancedproductmixandensuringdistribution creation through new licensing of agents. Going forward, the channel’s primary focus will be towards empowering the sales force witheffectivesalespractices,solutionsandenablementtoolstoenhanceproductivity.

• Bancassurance channel registered a new business premium of `172crorescontributingto20%ofindividualsales.Thedraftguidelinesonbancassuranceareexpectedtoprovideuswideropportunitiesfortie-ups.Thenewbrokingguidelinesprovidingoptionstobankstoactasbrokerswillalsoprovidethechannelwithwideropportunities.Ourprioritiesforthechannelmovingforwardwillbetoharvestexistingpartners, and tapping new opportunities from banks as brokers.

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Management Discussion and Analysis

• Corporate Agent & Broker (CAB) and Other channeloverthepastfewyearshasbuiltastrongfranchisenetworkwitharound150partners.Thisbusinesscontributedaround16%ofournewbusinesssalesandregisteredanewbusinesspremiumof` 138 crores. The new business fromCorporateAgency&Brokingchannelhasde-grownoverlastyearduetoseveralqualitymeasuresundertakenduringtheyear.Theendeavourgoingforwardwillbetofocusonfewstrategictie-upsandtoaddnewcapacitieswhilefurtherimprovingqualityofbusiness.

• Group Businessregistereda4%growthoverpreviousyearwithnewbusinesspremiumof` 819 crores in FY14. Our performance was drivenbyimprovementinproductlinesandfocusonincreasingourpenetration.Thishelpedusachieve1strankamongstprivateinsurersfortheperiodFY14.WehavemadesignificantinroadsintoRisk/Protectionbusinesshelpingusbuildprofitmargins.

TheCompanyhasmaintaineditschannelmixoveritspreviousyearwithmajorproportionofthebusinesscomingfromagencychannel.BelowtableshowstheAPEEquivalentchannelmixfortheCompany.

Constant Channel mix over previous year

2013 2014

DSF Banca CAB/Others

19%

18%

63%

16%

20%

65%

PRODUCT STRATEGY & PERFORMANCEBSLIhasseenashiftinproductmixwhichismovingtowardstraditionalproducts.AftertheSeptember’10guidelines,therehasbeenamajor shift in favour of traditional products, particularly non-participatingproducts.Recently, after theOctober’13 regulations, theBSLI has shifted its focus from the second half of the year from primarily Non-Participating Traditional products to a balanced mix of participating and non-participating products.

2010 2011 2012 2013 2014

ULIP Traditional

95% 68% 54% 40%45%

5%32% 46% 60%55%

Duringtheyearunderreview,theCompanylaunchedseveralnewproductsandre-launchedexistingproductstocomplywiththenewregulatoryguidelines. Below are the products which were launched during the year:

– Non-ParticipatingTraditionalproducts:BSLIEasyProtect,IncomeAssureandImmediateAnnuity

– ParticipatingTraditionalproducts:BSLIVisionLifeIncome,VisionLifeSecure,SavingsPlan,VisionEndowmentandVisionRegularReturns

– UnitLinkedproducts:BSLIWealthSecure,WealthAssure,WealthMaxandEmpowerPension

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Annual Report 2013-14

Management Discussion and Analysis

Key Summary of Financial Indicators at a Glance

ThesnapshotofCompanyperformanceforFY13-14acrossarangeoffinancial&non-financialparameters.

Total Premium (crores) trend over years

Total Premium Total Income

2011 2012 2013 2014

5,67

7

5,88

5

5,21

6

4,83

3

7,11

0

5,61

4

7,15

8

7,17

7 Total Income for FY13-14

` 7,177 crores with

Total Premium ` 4,833

Net Profit (crores) over the years

2011 2012 2013 2014

305

461

371

542

Net Profit for FY13-14

` 371 crores

Operating Expenses (crores) over the years

2011

1,203

2012

1,215

2013

1,161

2014

1,045

2010

1,328

OPEX for FY13-14 ` 1,045 crores

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Management Discussion and Analysis

FINANCIAL PERFORMANCE Following is the summary of the Financial Performance for FY14

BSLI’s Financial Performance(in ` Crores)

ParticularsCurrent Year Previous Year

FY 14 FY 13

Income Gross premium income 4,833 5,216 -7%

Reinsurance (net) (188) (165) 14%

Total premium income (net) 4,645 5,052 -8%Income from investmentsPolicyholders 2,496 2,070 21%

Shareholders 115 116 -1%

Investment Income 2,610 2,186 19%Other Income 37 37 -0.3%

Total Income 7,292 7,274 0.2%Less:Commission 235 300 -22%

Expenses(includingdepreciation) 1,045 1,161 -10%

Benefitspaid(net) 3,666 3,659 0.2%

Provisionsforactuarialliability(net) 1,977 1,612 23%

ProvisionforTaxation – – –

Profit for the Current Year 371 542 -32%

Share Capital 1,901 1,970

Reserves&Surplus 268 480

NetWorth 1,257 1,248

• TheCompanyachievedtotalgrosspremiumof`4,833crores,whichsawadegrowthof7%Y-o-Ymainlyonaccountofproductregulationin the current year which resulted in discontinuance of most of our products from Oct’13. Our new business premium witnessed de-growth of8%vs.bankownedprivateplayersdeclineof13%.

• TheCompanyregisteredNetProfitof` 371 crores in FY14 as against `542croresinFY15.Ournetprofithasde-grownoverthepreviousyearprimarilyduetode-growthinnewbusinesspremiumanddecreaseinthesizeofourinforcebook.Thoughtheprofitshavede-grown,theprofitsareprimarilyattributedtobettermanagementofinforcebook,optimizationofexpensesandfocusonefficienciesindistribution.

• OverallCommissionratiosawadecreaseto4.9%asagainst5.8%inFY13.• OpextototalpremiumratiohasreducedinFY14to21.6%against22.3%forFY13.• Giventherobustfinancialperformance,therehasbeennocapitalinfusionforthepast4years.

Webelieve that theCompany’sprofitable journey is sustainableas theseprofitsareprimarilydrivenby in forcebusiness,decliningexpenseratiosandchangesinproductstructures.TheCompanytookseveralstepstorationalizeexpenses,improveefficienciesandproductivityacross its operations.

PREMIUM INCOMEPremium Break-Up

Particulars (INR Crores) FY14 FY13 % Growth

First year premium 1,697 1,837 -8%

IndividualLife 879 1,048 -16%

Group Business 818 788 4%

Renewal Premium 3,136 3,380 -7%

Total Premium 4,833 5,216 -7%

The total premium for the Company amounted to `4,833crores,de-growthof7%Y-o-Y.While Individualbusinessde-grewby16%,Groupbusinessregisteredagrowthof4%Y-o-Y.Asaninsurerwithlong-establishedtrackrecord,asignificantportionofourbusinessisonaregularpremiumbasis,whichhasprovideduswitharegularstreamofrenewalpremiums.

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Management Discussion and Analysis

INVESTMENT INCOMEThe Company continued excellence in investment performance for its policyholders. For all its ULIPs, the Company delivered excellent fundperformanceacrosstheboard,consistentlybeatingitsinternalbenchmarks,overallandaswellasacrossallthefunds.For3yearsason31stMar2014,64%ofAUM&56%offundshasoutperformedtheirrespectivepeers.

BSLI investment’s philosophy has been to build a sound investment portfolio within the regulatory guidelines, to ensure maximization ofpolicyholders’ wealth consistently on a long term basis.

COMMISSIONSThenew regulationshave impacteddistributorcompensationonULIPs.Toensureadequateearnings todistributors, theCompanyhas takenseveralinitiativesincludingdrivinghigherproductivityanddrivingtherightproductmixmappedwithappropriatecustomersegments.Additionallyenhanced training of the sales team accompaniedwith access to advanced technologywill expedite the transition to the evolving businessenvironment.Thecommissionratesfortotalbusinessandnewbusinessisprovidedinthetablebelow:

Commission Ratios

Individual Life FY14 FY13

TotalCommission/TotalPremium-Ind.Life 6.0% 6.9%

NewBusinessCommission/NBPremium-Ind.Life 16.9% 17.3%

OPERATING EXPENSESOperatingexpenses forFY14was` 1,045 crores as compared to `1,161 inFY13.TheCompanyhasbeen focusingondisciplinedexpensemanagementasaresultofwhichotherexpensesandoverheadsreducedby10%.TheOpextoPremiumratiohasimprovedfrom22.3%inFY13to21.6%inFY14,ascanbeseenfromthebelowgraph.

OPEX to Premium Ratio

2011

21.2%

2012

20.7%

2013

22.3%

2014

21.6%

2010

24.1%

2011

21.2%

2012

20.7%

2013

22.3%

2014

21.6%

2010

24.1%

OurCompany’scoststructureisinlinewithexpectationsgiventhenewbusinessgrowth,productstructuresandourfocusonlong-termproducts.Wewillcontinuetoreviewourexpensestructureinlinewiththebusinessgrowth.

Operating Expenses Break-Up

Particulars (INR Crores) FY14 FY13 % Growth

Salary 506 533 -5%

Other Expenses 538 628 -14%

Total Expenses 1,045 1,161 -10%

Expense as % of total premium 21.6% 22.3%

BENEFITS & RESERVESBenefits – Surrenders & Maturities

Ourprofitabilitydependsonourabilitytoretainexistingcustomersandtomanageourunderwritingandclaimseffectively.Hence,managingrisksaroundclaimsandincreaseinsurrenderswillbekeytohelpusachievingouroveralldesiredprofitabilityobjectives.Surrenders/partialwithdrawalsincludingSurvivalbenefitshaveincreasedto` 3,406 crores in FY14.

BSLIhastakennumberofinitiativestoreducesurrenderswhicharehighlightedbelow:• Distributioninitiativessuchasclawbacksonrewardsandrecognitionincentivesandcommissionsinducedsurrenders.• Customerawarenesscampaignstoeducatepeopleaboutbenefitsofmaintaininginvestmentsininsuranceproductsforlongterm.• InvestmentadvisoryservicesareprovidedonanindividualbasistoallHighNetIndividualpoliciescomingforsurrenders.

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Management Discussion and Analysis

NET PROFITTheCompanyregisteredNetProfitof` 371 crores in FY14 as against `542crores inFY13.OurNetProfithasde-grownoverpreviousyearprimarilyduetonewbusinesspremiumde-growthanddecreaseinthesizeofourinforcebooks.Thoughtheprofitshavedegrown,theprofitsareprimarilyattributedtobettermanagementofinforcebook,optimizationofexpensesandfocusonefficienciesindistribution.Wewillcontinuetofocusonourcorestrategytofocusonaprofitableproductmixwhileprovidingvalue-addedpropositiontoourcustomers.

Some of the key priorities to manage net income, set by the Company for FY15, are as follows: ² GrowthinprofitabilitywithfocusonSalesgrowth,balancedchannelmix,optimumcapacitiesanddistributionmanagement ² Managingexpenseefficienciesthoughbetterproductmixandlowerexpenses ² PersistencyandClaimsmanagement

FINANCIAL CONDITIONS & ASSET UNDER MANAGEMENTShare Capital, Dividend and Solvency position

TheCompanyiscapitalizedat`2,170crores(includingsharepremiumandcapitalredemptionreserves).Giventherobustfinancialperformance,there has been no capital infusion for the last four years. The Company undertook a buy-back of 68,292,000 shares, which resulted in reduction of its share capital from ` 1970 crores in FY13 to ` 1901 crores in FY14.

SolvencyreferstotheminimumsurplusthataninsuranceCompanyneedstokeepasideintheformofadditionalcapitaltomeetanyunprecedentedincreaseinclaimsandtomeetanyadverselosses.Assolvencyneedstobemaintainedoververylongperiodsforwhichpoliciesarewrittenitisnecessarytoensurethattheassetsexceedliabilitiesandareinvestedinrisk-freeassets.TheRegulationsprescribesthateachinsuranceCompanymusthavefreeassetsequalto1.5timesoftherequiredsolvencymargin.Oursolvencymarginisatalevelwhichisinexcessof1.86timesiswellabovetheregulatoryrequirementsof1.5times.ItalsoensuresthattheCompany’sstakeholdersandcustomerscanhaveconfidenceintheCompany’slong-termfinancialstrength.

Solvency ratio over the past years

2011 2012 2013 20142010 2011

2.89

2012

2.99

2013

2.95

2014

1.86

2010

2.11

Duringtheyear,theCompanyhasdeclaredDividendstothetuneof`70crores.Dividenddistributiontaxespaidonthesamewas` 11.9 crores.

Assets under Management

Assets under Management (AUM) grew from ` 15,625 crores in FY10 to `23,445croresinFY14.InFY14,wedidnotwitnessamajorchangein ourallocationofassetsbetweendebtandequity.ProportionofequityhasremainedstablefortheCompanyovertheyearsandhasbeenintherangeof55-60%.

Asset under Management (INR Crores) Trends Equity & Debt component

2010

15,625

2011

19,063

2012

20,095

2013

21,559

2014

23,445

Debt Equity

2010 2011 2012 2013 2014

46%

54%

45%

55%

41%

59%

42%

58%

44%

56%

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Management Discussion and Analysis

Human Resources

EmployeeEngagement–BSLIengageseffectivelywithitsemployeescriticaltobuildingandsustainingahigh-performingbusinessandretainingtalent.Engagementinitiativeschemeswereintroducedinbranchesacrossthecountrywhichincludedcelebrations,festivals,recreationalandsportactivities,recognitionsetc.Additionally,RewardsandRecognitionprogrammewasinitiatedwhichwasaimedatcreatingacultureofrecognizingandcelebratingperformanceatmultiplelevelsacrosstheorganization&groupinadditiontoaswellasacrossforindividuals&teams.

Training&Development–TheSales&CorporateTrainingCellprovidestrainingarchitectureforstructuredandsystematiclearningfromtrainer,supervisorandbyself,improveretention,applicationoflearningandimprovedisciplineinparticipation.

BRAND PERFORMANCEWebelievethatthe“Birla”brandisoneofthemostrecognizedbrandsinIndiawhichprovidesuswithsignificantcompetitiveadvantage,particularlytowards attracting new customers and talent.

TheCompanycontinueditseffortstowardsimprovingitsbrandimageinFY14.WemaintainedourBrandAwarenessscoreovertheperiodwith36%inFY13to35%inFY14.Webelievethatgoingforwardthestrengthofourbrandisexpectedtobecomemoreimportant.Wewillcontinuetostrengthenoureffortsfurthertoimproveourbrandperformancethroughanoptimalmixofabove-the-lineandbelow-the-lineactivities.

Ourbrandcontinuestoactasanimpetusforemployeeengagementandinsightfuldecisionmaking.Foremployees,itmeanspositivedifferenceforourcustomers,itmeansreachingacrossthecountrytobuildonourreputationasastrongandstableCompany.Fromtelevisionadvertisingtooursponsorshipsandexpandedwebandsocialmediapresence,ourfocuswasondeepeningtheunderstandingofourbrandpromise.

CUSTOMER MANAGEMENTCustomer Service Capabilities

TheCompanycontinuestoworktowardsmakingeachaspectofbusinessintrinsicallycustomer-centricandconstantlyendeavourstounderstandbothstatedandunstatedrequirements.Ourapproachhasbeenbuiltaround(a)listeningtoourcustomers,(b)understandingtheirfeedbackandpointofviewand(c)respondingtothecustomeraccordingly.

Continuedfocus toembrace technologywhiledeliveringservicehashelpedCompany tomaintainand improvisecustomerrelationshipwithexpandingbusiness.Whileembarkingondigitalpath,initiativeswererolledoutincustomerserviceareaaswell.Thisnotonlyincludesrevampingwebsite&IVRtoempowercustomerwithmoreselfservicingfeature,butalsoelectronicissuanceofpoliciesinpaperlessenvironmentwithfasterKYC.

TheCompanyhasfocusedonimprovingcustomerservicethroughacombinationofcapabilitiesandinitiativeswhichinclude:

1. Institutionalisingstrongfocusonzonalempowermentenablingfasterresolutionofcustomerrequestdirectlyatthefield.

2. ‘BSLIdirect’initiativebydedicatedOrphandesktoreachoutandproactivelyengagewithOrphancustomers.

3. Companyhasalsostartedcallcentreoperationsinregionallanguagestoprovidebettercustomerexperience.

4. RCAapproach (RootCauseAnalysis) to understand the customer grievancebetter and improvise processes for avoidance of any suchgrievanceinfuture.Inadditionpreventiveactionsweredeployedwhereincustomersareapproachedduringissuancestageitselftocapturetheir concerns, if any.

CustomerConnectinitiativelaunchedinpreviousyearisgivinggoodresultsandconsideringitssuccess,Companyhasrolledoutotherinitiativestocollectinstantcustomerfeedback,transactionssurvey,etc.tounderstandthecustomerexperienceandtoimprovementitfurther.

OUTLOOK FOR THE COMPANYOverthepastfewyearsgiventheregulatorychangesandmacroenvironment,therehasbeenaperceptibleslowdownintheindustry.However,thishasgivenanopportunitytotheexistinginsuranceplayerstoreviewtheiroperatingmodelstodrivehigherefficienciesandfocusonmorebalanced growth.

Generalmarket conditions including high interest rate & high inflation and gold and real estate being leveraged by household as preferredinvestmentvehicleshasnothelpedtheinsuranceindustry.Butrecenteasingofinflationandbearishtrendingoldandrealestateisexpectedtoaugurwellfortheindustrygoingforward.Indiaalsohasseveralstructuraladvantagesintermsoffavourabledemographicsandhighrateoffinancialsavings.Greatercertaintyofregulation,improvingmacro-economicenvironment,increasingproductofferingsandevolvingdistributionchannelswouldfurtherenhancegrowthandprofitability.

TheCompanyhasidentifiedthefollowingkeyareastostrengthenitscompetitiveandfinancialpositioninthecomingyears:

² Agency channel shall continue to be the engine of growth. A new distribution strategy has been implemented to enable sales force to identify and access new markets/segments/customers.

² NewSalesenablementTools,learningmethodologiesandengagementmodelshavebeeninitiatedtodrivehigherproductivityandqualityofsales/engagementwithcustomers

² MaintainleadershipinGroupChannel–FundandTermwithequalfocusonrevenuesandprofitability

² Growthinprofitabilitywithfocusonproductmix,balancedchannelmixandexpenseefficiencies.

² PersistencyandClaimsmanagement

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Corporate Governance Report

Philosophy of Corporate GovernanceCorporateGovernance involvesasetof relationshipsbetweenaCompany’sManagement, itsBoard, itsShareholdersandotherStakeholderswithanobjectiveof‘enhancementoflong-termshareholdervalue,whileatthesametimeprotectingtheinterestofallstakeholders(investors,customers,employees,vendors,governmentandsociety-at-large).

GoodCorporateGovernanceconsistsofasystemofstructuring,operatingandcontrollingaCompanysuchastoachievethefollowing:

• a culture based on a foundation of sound business ethics

• fulfillingthelong-termstrategicgoaloftheownerswhiletakingintoaccounttheexpectationsofallthekeystakeholders,andinparticular:

² consider and care for the interests of employees, past, present and future

² worktomaintainexcellentrelationswithbothcustomersandsuppliers

² takeaccountoftheneedsoftheenvironmentandthelocalcommunity

• maintaining proper compliancewith all the applicable legal and regulatory requirements underwhich the company is carrying out itsactivities.

ThephilosophyandobjectiveofCorporateGovernanceatBirlaSunLifeInsuranceCompanyLimited(BSLI)is“aboutworkingethicallyandfindingabalancebetweeneconomicandsocialgoals including theability to functionprofitablywhilecomplyingwith theapplicable laws, rulesandregulations.”

BSLIiscommittedtoupholdthecorevaluesoftransparency,integrity,honestyandaccountability.Thiscommitmentlaysthefoundationforfurtherdevelopmentofsuperiorgovernancepractices,whicharevitalforgrowingasuccessfulbusiness,creatingsustainablelong-termshareholdervalueand balancing it with the interests of other stakeholders in the Company. It is not a discipline necessarily imposed by a regulator rather a culture thatguidestheBoard,theManagementandemployeestofunctiontowardsthebestinterestofthevariousstakeholders.

Structure:

ThisReportisdividedintothreesections,asfollows:

A. Reporting under Clause 49 of the Listing Agreement;

B. ReportingunderIRDACorporateGovernanceGuidelines(IRDACGGuidelines);and

C. Reporting under MCA Guidelines (MCA Guidelines).

SECTION AREPORTING UNDER CLAUSE 49 OF THE LISTING AGREEMENTBSLI is an unlisted company and hence the clause 49 of the listing agreement is not applicable. Yet BSLI, on a suo moto basis, has taken all necessaryinitiativestocomplywiththeprovisionsofthesaidclausetothemaximumextentpossibleandendeavours,intruespirit,togowellbeyondthemandatoryprovisions.

I. BOARD OF DIRECTORS (“BOARD”)AtBSLI,theDirectorsareelectedbyshareholdersoftheCompanywitharesponsibilitytosetstrategicobjectivesfortheManagementandtoensurethatthelong-terminterestsofallstakeholdersareservedbyadheringtoandenforcingtheprinciplesofsoundCorporateGovernance.

BSLI’s Board members have diverse areas of knowledge and expertise, which is necessary in providing an independent and objectiveview on business issues and assess them from the stand-point of the stakeholders of theCompany.At BSLI, theBoard is independent of the Management.

I.A. Composition of the Board

TheBoardcomprisedofelevenDirectorsason31stMarch,2014,tenbeingNon-ExecutiveDirectors(ofwhichthreewereIndependent)andaManaging Director.

ThecurrentChairmanoftheBoard,Mr.KumarMangalamBirla,isaNon-ExecutiveDirector.

ThechangesintheChairmanship/DirectorshipoftheCompanyduringtheFinancialYear(FY)2013-14aregiveninTable01:

Name of the Directors Particulars

Mr.JayantDua Ceased to be a Managing Director w.e.f. December 31, 2013

Mr.PankajRazdan AppointedasaManagingDirectorw.e.f.January01,2014

Mr.M.V.Nair AppointedasanIndependentDirectorw.e.f.July02,2013

Mr. Suresh Talwar CeasedtobeaDirectorw.e.f.July02,2013

Table 01

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I.B. Details of Directorships / Committee membership

ThecompositionofourBoard,theirDirectorships/CommitteemembershipsandChairmanships(excludingtheCompany)asonMarch31,2014isgiveninTable02:

Name of the Directors DesignationNo. of Directorship(s)

in other Public Companies*

No. of Committee

Membership**

Chairmanship in Committees**

Mr.KumarMangalamBirla Non-ExecutiveDirector(Chairman) 9 Nil NilMr.AjaySrinivasan Non-ExecutiveDirector 3 4 NilMr.BishwanathN.Puranmalka Non-ExecutiveDirector 3 4 NilMr. Donald A. Stewart Non-ExecutiveDirector 6 Nil NilMr.GianP.Gupta Non-ExecutiveDirector(Policyholders’

representative,Independent)10 8 5

Mr.JayantDua*** Managing Director 1 Nil NilMr.KevinStrain Non-ExecutiveDirector Nil Nil NilMr.M.V.Nair# Non-ExecutiveDirector(Independent) 7 2 NilMr.PankajRazdan## Managing Director 2 Nil NilDr.RakeshJain Non-ExecutiveDirector 8 2 NilMr. Suresh Talwar**** Non-ExecutiveDirector(Independent) 13 9 NilMs.TarjaniVakil Non-ExecutiveDirector(Independent) 4 3 NilMr.VenkateshMysore Non-ExecutiveDirector 2 1 Nil

Table 02

*ExcludingalternatedirectorshipsanddirectorshipsinforeigncompaniesandcompaniesunderSection25oftheCompaniesAct,1956.

**OnlyAuditCommitteeandShareholders’GrievanceCommitteeofallpubliclimitedcompanies(whetherlistedornot)havebeenconsideredforthe purpose of the Committee positions (membership and chairmanship), as per Clause 49 of listing agreement.

***Resigned w.e.f. December 31, 2013 #Appointed w.e.f. July 02, 2013****Resigned w.e.f. July 02, 2013##Appointed w.e.f. January 01, 2014

I.C. Non-Executive Directors’ compensation and disclosures

Asstatedearlier,tenofourDirectorsareNon-ExecutiveDirectors.Ofthese,sevenDirectorsarerepresentativesofthetwoshareholdersi.e.AdityaBirlaNuvoLimited(04)andSunLifeFinancial(03)andtherestthreeareIndependent.AsdecidedbytheBoard,noremunerationofwhatsoevernatureispaidtotheseNon-ExecutiveDirectors,exceptforasittingfeetothethreeIndependentDirectors,asdetailedhereunder.

The Company pays sitting fees of ` 20,000 to the Independent Directors for attending each Board Meeting and Board Committee meetings.

ThedetailsofsittingfeespaidtotheseIndependentDirectorsduringtheFY2013-14aregiveninTable03:

(Amount in `)

Name of the Directors

Sitting Fees for the meetings of

TotalBoard Audit Committee

Risk Management Committee

With Profits Committee

Mr.GianPrakashGupta 80,000 80,000 80,000 20,000 260,000Mr.M.V.Nair* 60,000 NA NA NA 60,000Mr.SureshNarsappaTalwar** 20,000 NA NA NA 20,000Ms.TarjaniVakil 60,000 60,000 80,000 NA 200,000

Table 03

*Appointed w.e.f. July 2, 2013**Resigned w.e.f. July 2, 2013

I.D. Board Meetings

Agenda and Minutes

TheCompanySecretaryreceivesdetailsonmatterswhichrequiretheapprovaloftheBoard/BoardCommittees,fromvariousdepartmentsoftheCompanywellinadvance,sothattheycanbeincludedintheBoard/BoardCommitteeagenda(s).Allmaterialinformationisincorporated,indetail,in the agenda papers for facilitating meaningful and focussed discussions at the meetings.

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Corporate Governance Report

Board Meetings and attendance of Directors

Asagoodpractice,ayearlymeetingscalendarispreparedandcirculatedtoalltheDirectorsinthemonthofNovember/Decembereveryyear,relevantforthenextcalendaryear,sothattheycanadequatelyplantheirschedule.ThisensuresoptimumpresenceoftheDirectors/CommitteeMembers at each meeting.

During FY 2013-14, four Board meetings were held as below:

i) April 26, 2013;

ii) July26,2013;

iii) October 25, 2013; and

iv) January31,2014.

DuringFY2013-14thetimegapbetweentwosuccessiveboardmeetingsdidnotexceed4months.

TheattendanceoftheDirectorsattheaboveBoardmeetingsandatthelastAnnualGeneralMeetingisgiveninTable04:

Name of the DirectorsNo. of Board meetings held during FY 2013-14

Attendance in the last AGM dated July 2, 2013

Held Attended

Mr.KumarMangalamBirla 4 1 No

Mr.AjaySrinivasan 4 3 No

Mr.BishwanathN.Puranmalka 4 4 Yes

Mr. Donald A. Stewart 4 4 No

Mr.GainP.Gupta 4 4 No

Mr.JayantDua* 3 3 Yes

Mr.KevinStrain 4 3 No

Mr.M.V.Nair# 3 3 No

Mr.PankajRazdan** 1 1 No

Dr.RakeshJain 4 4 No

Mr.S.N.Talwar## 1 1 No

Ms.TarjaniVakil 4 3 Yes

Mr.VenkateshMysore 4 3 No

Table 04

* Resigned w.e.f. December 31, 2013** Appointed w.e.f. January 1, 2014##Resigned w.e.f. July 02, 2013#Appointed w.e.f. July 02, 2013

I.E. Code of Conduct

The Company has designed and implemented a Code of Conduct for all the employees of the Company. The senior management of the Company isalsogovernedbythisCodeofConduct.AlltheemployeesconfirmtheiradherencetothisCodeonanannualbasis.

II. BOARD COMMITTEES Forensuringsmoothbusinessactivities,theCompanyhasconstitutedcertainBoardCommitteeswithwelldefinedcharters.TheprominentBoardCommittees are as under:

II.1. ASSET LIABILITY MANAGEMENT COMMITTEE

PursuanttothenatureofproductssoldbytheCompanyitiscrucialtohaveanAssetLiabilityCommitteetomanagethevariousriskandarisingonaccountofproductguarantees,interestratesmovements,durationmismatches,cashflowmismatch,capitalmarket,marketliquidity,etc.

Asper IRDACGGuidelinesconstitutionof“AssetLiabilityManagementCommittee” ismandatory for life insurancecompanies. Inviewof theforegoingprovision,BSLI’sBoardhadconstitutedan“AssetLiabilityManagementCommittee”atitsmeetingheldonNovember10,2009.

Asset Liability Management Committee will set policy framework and operating guidelines for asset liability matching to safeguard the interest ofShareholdersandPolicyholders.ThisCommitteewillinsurethattheassetsarecreatedinlinewiththeliabilities.TheCommitteewillmonitor,review&evaluateallpossiblevariantthatcanhaveanimpactontheALMandwillinsurerequisitesmeasuresareplacedtomanageriskarisingoutofthesevariants.

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II.1.A. Composition

ThecompositionoftheAssetLiabilityManagementCommitteeasonMarch31,2014isgiveninTable05:

Name of the Committee Members Designation

Mr.AjaySrinivasan Member&Non-ExecutiveDirector

Mr.AmitJain# Member&ChiefFinancialOfficer

Mr.AnilKumarSingh Member,ChiefActuarialOfficer&AppointedActuary

Mr.JayantDua* Member & Managing Director

Ms.KeertiGupta Member & Head-Risk

Mr.LalitVermani Member&ChiefLegalCompliance&RiskOfficer

Mr. Mayank Bathwal MemberDeputyChiefExecutiveOfficer

Mr.PankajRazdan** Member & Managing Director

Dr.RakeshJain## Member&Non-ExecutiveDirector

Mr.SashiKrishnan Member&ChiefInvestmentOfficer

Mr.VenkateshMysore Member&Non-ExecutiveDirector

Table 05#Appointed w.e.f. October 25, 2013

*Ceased w.e.f. December 31, 2013

**Appointed w.e.f. January 01, 2014##Ceased w.e.f . March 6, 2014

The Company Secretary acts as the Secretary to the Committee.

II.1.B. Meetings and attendance

DuringFY2013-14,theAssetLiabilityManagementCommitteemembersmetfourtimesviz:

i) April 29, 2013;

ii) July24,2013;

iii) October 23, 2013; and

iv) January21,2014.

The attendance of the Asset Liability Management Committee members at the Asset Liability Management Committee meetings during FY2013-14isgiveninTable06:

Name of the Committee Members

No. of Asset Liability Management Committee

meetings held during FY 2013-14

Held Attended

Mr.AjaySrinivasan 04 04

Mr.AmitJain# 01 01

Mr.AnilKumarSingh 04 04

Mr.JayantDua* 03 03

Ms.KeertiGupta 04 04

Mr.LalitVermani 04 04

Mr. Mayank Bathwal 04 04

Mr.PankajRazdan** 01 01

Dr.RakeshJain## 04 00

Mr.SashiKrishnan 04 03

Mr.VenkateshMysore 04 02

Table 06#Appointed w.e.f. October 25, 2013*Ceased w.e.f. December 31, 2013**Appointed w.e.f. January 01, 2014##Ceased w.e.f. March 6, 2014

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II.2. Audit Committee

TheprovisionofSection292AoftheCompaniesAct,1956,prescribesthateverypubliccompanyhavingpaid-upcapitalofnotlessthan` 5 crores shallconstituteacommitteeoftheBoardknownas“AuditCommittee”.TheCompanyhadconstituteditsAuditCommitteeonJanuary31,2001withwelldefinedobjectives,rolesandresponsibilities.

II.2.A. Composition

ThecompositionoftheAuditCommitteeasonMarch31,2014isgiveninTable07:

Name of the Committee Members Designation

Mr.GianPrakashGupta Chairman,Non-Executive&IndependentDirectorMr.AjaySrinivasan Member&Non-ExecutiveDirectorMr.BishwanathN.Puranmalka Member&Non-ExecutiveDirectorMr.JayantDua* Member & Managing DirectorMr.Kevinstrain Member&Non-ExecutiveDirectorMr.PankajRazdan** Member & Managing DirectorMs.TarjaniVakil Member,Non-Executive&IndependentDirectorMr.VenkateshMysore Member&Non-ExecutiveDirector

Table 07

*Ceased w.e.f. December 31, 2013**Appointed w.e.f. January 01, 2014

The Company Secretary acts as the Secretary to the Committee.

AllmembersoftheAuditCommitteearefinanciallyliterateandhavethenecessaryaccountingandrelatedfinancialmanagementexpertise.

TheChiefExecutiveOfficer,theDeputyChiefExecutiveOfficer,theChiefFinancialOfficer,theAppointedActuary,ChiefLegalCompliance&RiskOfficer,theStatutoryAuditorsandtheInternalAuditorsattendeachAuditCommitteeMeeting.Thespecialauditorsofboththepromoters(viz.AdityaBirlaNuvoLimited&SunLifeFinancialInc.)oftheCompanyalsoconductcertainprocessauditsduringtheyearandtheyareinvitedtopresenttheir reports at the Audit Committee meeting of the Company.

II.2.B. Meetings and attendance

DuringFY2013-14,theAuditCommitteemetfourtimesviz.

i) April 26, 2013;

ii) July26,2013;

iii) October 25, 2013; and

iv) January31,2014.

TheattendanceoftheAuditCommitteemembersattheAuditCommitteemeetingsduringFY2013-14isgiveninTable08:

Name of the Committee Members

No. of Audit Committee meetings

held during FY 2013-14

Held Attended

Mr.AjaySrinivasan 04 03Mr.BishwanathN.Puranmalka 04 04Mr.GianPrakashGupta 04 04Mr.JayantDua* 03 03Mr.PankajRazdan** 01 01Mr.KevinStrain 04 03Ms.TarjaniVakil 04 03Mr.VenkateshMysore 04 03

Table 08

*Ceased w.e.f. December 31, 2013**Appointed w.e.f. January 01, 2014

II.3. Investment Committee

PursuanttoSection292oftheCompaniesAct1956,theBoardhasthepowertoinvesttheFundsoftheCompanyanddelegatethesametoanyCommitteeortoanyofficialsoftheCompanyonanysuchconditionsasmaybeprescribedbytheBoard.

TheroleofInvestmentCommitteeistosetpolicyframeworkforInvestmentandensuringtosafeguardtheinterestofShareholdersandPolicyholdersFunds.InvestmentcommitteeensuresthatallinvestmentactivitiesareconductedaspertheframeworkdefinedbyIRDAandBoard.

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II.3.A. Composition ThecompositionoftheInvestmentCommitteeasonMarch31,2014isgiveninTable09:

Name of the Committee Members Designation

Mr.AjaySrinivasan Member&Non-ExecutiveDirectorMr.AmitJain# Member&ChiefFinancialofficerMr.AnilKumarSingh Member,ChiefActuarialOfficer&AppointedActuaryMr.JayantDua* Member & Managing DirectorMs.KeertiGupta Member & Head – RiskMr.LalitVermani Member&ChiefLegalCompliance&RiskOfficerMr. Mayank Bathwal Member&DeputyChiefExecutiveOfficerMr.PankajRazdan** Member & Managing DirectorDr.RakeshJain## Member&Non-ExecutiveDirectorMr.SashiKrishnan Member&ChiefInvestmentOfficerMr.VenkateshMysore Member&Non-ExecutiveDirector

Table 09#Appointed w.e.f. October 25 , 2013*Ceased w.e.f. December 31, 2013**Appointed w.e.f. January 01, 2014##Ceased w.e.f. March 6, 2014

The Company Secretary acts as the Secretary to the Committee.

II.3.B. Meetings and attendance

DuringFY2013-14,theInvestmentCommitteemembersmetfourtimesviz:

i) April 29, 2013;

ii) July24,2013;

iii) October 23, 2013; and

iv) January21,2014.

TheattendanceoftheInvestmentCommitteemembersattheInvestmentCommitteemeetingsduringFY2013-14isgiveninTable10:

Name of the Committee Members

No. of Investment Committee

meetings held during FY 2013-14

Held Attended

Mr.AjaySrinivasan 04 04

Mr.AmitJain# 01 01

Mr.AnilKumarSingh 04 04

Mr.JayantDua* 03 03

Ms.KeertiGupta 04 04

Mr.LalitVermani 04 04

Mr. Mayank Bathwal 04 04

Mr.PankajRazdan** 01 01

Dr.RakeshJain## 04 00

Mr.SashiKrishnan 04 03

Mr.VenkateshMysore 04 02

Table 10#Appointed w.e.f. October 25 , 2013*Ceased w.e.f. December 31, 2013 **Appointed w.e.f. January 01, 2014 ##Ceased w.e.f. March 6, 2014

II.4. Policyholders’ Protection Committee

IRDAplacessignificantemphasisontheprotectionofpolicyholders’interestsandontheadoptionofsoundandhealthymarketconductpracticesby insurers. IRDAregulationsandguidelinesare inplacewithrespecttoprotectionofpolicyholders’ interests,advertisementanddisclosures,advertisementandpromotion&publicity.

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AsperIRDACGGuidelinesconstitutionof“Policyholders’ProtectionCommittee”ismandatoryforlifeinsurancecompanies.Inviewoftheforegoingprovision,BSLI’sBoardhadconstitutedthe“Policyholders’ProtectionCommittee”atitsmeetingheldonNovember10,2009toaddressvariouscompliance issues relating to protection of the interests of policyholders, as also relating to keeping the policyholders well informed of and educated about insurance products as well as complaint-handling procedures and shall directly report to the Board.

II.4.A. Composition

ThecompositionofthePolicyholders’ProtectionCommitteeasonMarch31,2014isgiveninTable11:

Name of the Committee Members Designation

Mr.N.N.Jambusaria Member & Chairman Mr.AmitabhVerma Member&ChiefOperatingOfficerMr.AmitJain# Member,ChiefFinancialOfficerMr.AnilKumarSingh Member,ChiefActuarialOfficerandAppointedActuaryMs.AnjaliMakhija## Member&Head-CustomerServiceMr. Ashish Lakhtakia## Member & Company Secretary Mr.JayantDua** Member & Managing DirectorMr.LalitVermani Member&ChiefLegalCompliance&RiskOfficerMr. Mayank Bathwal Member&DeputyChiefExecutiveOfficerMr.PankajRazdan* Member & Managing DirectorMr.VikasSeth Member&ChiefDistributionOfficer

Table 11

*Appointed w.e.f. January 01, 2014**Ceased w.e.f. December 31, 2013#Appointed w.e.f. October 25, 2014##Appointed w.e.f. January 24, 2014

The Company Secretary acts as the Secretary to the Committee.

II.4.B. Meetings and attendance

DuringFY2013-14,thePolicyholders’ProtectionCommitteemembersmetfourtimesviz:

i) April 16, 2013;

ii) July22,2013;

iii) October 21, 2013; and

iv) January24,2014.

TheattendanceofthePolicyholders’ProtectionCommitteemembersatthePolicyholders’ProtectionCommitteemeetingsduringFY2013-14isgiveninTable12:

Name of the Committee Members

No. of Policyholders’ Protection Committee meetings held during FY 2013-14

Held Attended

Mr.N.N.Jambusaria 04 04Mr.AnilKumarSingh 04 04Mr.AmitabhVerma 04 04Mr.AmitJain* 01 01Mr. Ashish Lakhtakia** 01 01Ms.AnjaliMakhija** 01 01Mr.JayantDua# 03 03Mr.LalitVermani 04 04Mr. Mayank Bathwal 04 04Mr.PankajRazdan## 01 01Mr.VikasSeth 04 02

Table 12

* Appointed w.e.f. October 25, 2013**Appointed w.e.f. January 24, 2014#Ceased w.e.f. December 31, 2013 ##Appointed w.e.f. January 01, 2014

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II.5. Risk Management Committee InviewofthegrowingscaleoftheCompanyandtheregulationsbecomingmorestringent, theBoardoftheCompanyat itsmeetingheldon May24,2008constitutedtheRiskManagementCommittee(erstwhileRiskReviewMeeting)asasub-committeeoftheBoard,tooverseetheriskmanagementandcomplianceactivitiesoftheCompany.

II.5.A. Composition

ThecompositionoftheRiskManagementCommitteeasonMarch31,2014isgiveninTable13:

Name of the Committee Members Designation

Mr.AjaySrinivasan Member&Non-ExecutiveDirector

Mr.GianPrakashGupta Member,Non-Executive&IndependentDirector

Mr.JayantDua* Member & Managing Director

Ms.TarjaniVakil Member,Non-Executive&IndependentDirector

Mr.PankajRazdan** Member & Managing Director

Mr.VenkateshMysore Member&Non-ExecutiveDirector

Table 13

*ceased w.e.f. December 31, 2013**Appointed w.e.f. January 01, 2014

The Company Secretary acts as the Secretary to the Committee.

II.5.B. Meetings and attendance

DuringFY2013-14,theRiskManagementCommitteemembersmetfourtimesviz:

i) April 15, 2013;ii) July24,2013;iii) October 18, 2013; and

iv) January24,2014.

Theattendanceof theRiskManagementCommitteemembers at theRiskManagementCommitteemeetingsduringFY2013-14 is given in Table 14:

Name of the Committee Members

No. of Risk Management Committee meetings held during FY 2013-14

Held Attended

Mr.AjaySrinivasan 04 04

Mr.GianPrakashGupta 04 04

Mr.JayantDua* 03 03

Mr.PankajRazdan** 01 01

Ms.TarjaniVakil 04 04

Mr.VenkateshMysore 04 03

Table 14

*Ceased w.e.f. December 31, 2013 **Appointed w.e.f. January 01, 2014

II.6. Finance Committee TheBoardhasconstitutedaFinanceCommitteeincomplianceoftherevisedClause41oftheListingAgreement.AspertheListingAgreementsuch committee shall consist of not less than one third of the directors, which shall include at least one Independent Director.

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II.6.A. Composition ThecompositionofFinanceCommitteeasonMarch31,2014isgiveninTable15:

Name of the Committee Members Designation

Mr.AjaySrinivasan Member&Non-ExecutiveDirector

Mr.BishwanathN.Puranmalka Member&Non-ExecutiveDirector

Mr.GianPrakashGupta Member,Non-Executive&IndependentDirector

Ms.TarjaniVakil Member,Non-Executive&IndependentDirector

Mr.VenkateshMysore Member&Non-ExecutiveDirector

Table 15

The Company Secretary acts as the Secretary to the Committee.

II.7. Share Allotment Committee To keep pace with the rapid growth of the Company and to smoothen and fasten the process of regular infusion of share capital, the Board of the Company, at its meeting held on April 25, 2005 had constituted a committee called the Share Allotment Committee. The Share Allotment Committee hasbeendelegatedtheauthoritytoallotthesharesandissuethesharecertificates.

II.7.A. Composition ThecompositionofShareAllotmentCommitteeasonMarch31,2014isgiveninTable16:

Name of the Committee Members Designation

Mr.BishwanathN.Puranmalka Member&Non-ExecutiveDirector

Mr.GianPrakashGupta Member,Non-Executive&IndependentDirector

Mr.SureshNarsappaTalwar* Member,Non-Executive&IndependentDirector

Mr.VenkateshMysore Member&Non-ExecutiveDirector

Table 16

*ceased w.e.f. July 02, 2013

The Company Secretary acts as the Secretary to the Committee.

II.7.B. Meetings and attendance

DuringFY2013-14,theShareAllotmentCommitteemembersmetonceviz:

May 24, 2013

TheattendanceoftheShareAllotmentCommitteemembersattheShareAllotmentCommitteemeetingsduringFY2013-14isgiveninTable17:

Name of the Committee Members

No. of Share Allotment Committee meetings held during FY 2013-14

Held Attended

Mr.BishwanathN.Puranmalka 01 01

Mr.GianPrakashGupta 01 01

Mr.SureshNarsappaTalwar* 01 00

Mr.VenkateshS.Mysore 01 01

Table 17

*ceased w.e.f. July 02, 2013

II.8. WITH PROFIT COMMITTEE AsperIRDA(Non-linkedInsuranceProducts)Regulation,2013,everyinsurerhastoconstitute“WithProfitsCommittee”withoneindependentdirectoroftheBoard,theCEO,theAppointedActuary&anindependentactuaryandthereportofWithProfitsCommitteeshallbeappendedtotheActuarialReportandAbstract.HencetheCommitteewasformedvideBoardMeetingheldonApril26,2013.

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II.8.A. Composition

ThecompositionofWithProfitCommitteeasonMarch31,2014isgiveninTable18:

Name of the Committee Members Designation

Mr.G.P.Gupta Member,Non-Executive&IndependentDirector

Mr.AnilKumarSingh Member&ChiefActuarialOfficer&appointedactuary

Mr.PankajRazdan Member & Managing Director

Mr.VivekJalan Independent Actuary

Table 18

The Company Secretary acts as the Secretary to the Committee.

II.8.B. Meetings and attendance

DuringFY2013-14,thefirstWithProfitsCommitteemeetingwasheldonFebruary28,2014.

TheattendanceoftheWithProfitsCommitteemembersattheWithProfitsCommitteemeetingsduringFY2013-14isgiveninTable19:

Name of the Committee Members

No. of Share Allotment Committee meetings held during FY 2013-14

Held Attended

Mr.GianPrakashGupta 01 01

Mr.AnilKumarSingh 01 01

Mr.PankajRazdan 01 00

Mr.VivekJalan 01 01

Table 19

III. SUBSIDIARY COMPANIESTheCompanydoesnothaveanysubsidiaryCompanyof itsown.However, theCompany isamaterialnon listed IndiansubsidiarycompanyofAdityaBirlaNuvoLimited(ABNL),whichisholding74%oftheCompany’ssharecapital.Mr.GianPrakashGuptaandMs.TarjaniVakil,bothindependentdirectorsontheBoardofABNL,arealsoindependentdirectorsontheBoardoftheCompany.TheCompanyregularlyreportsthecorporategovernancerequirements,asapplicabletoamaterialnonlistedIndiansubsidiarycompany,toABNL,includingforwardingofminutes,financialstatements,statementofsignificanttransactionsandarrangementsenteredintobytheCompany.

IV. DISCLOSURESIV.A. Related Party Transactions

All the related party transactions are strictly done on arm’s length basis. The related party transactions of the Company are periodically placed and reviewedbytheAuditCommitteeoftheCompanyandnecessarybriefingisgiventotheBoardaswell.ParticularsofrelatedpartytransactionsarelistedoutinAnnexure2toSchedule16NoteNo.28oftheBalanceSheetformingpartoftheAnnualReport.

IV.B. Remuneration of Directors

The detailed note on the remuneration of Directors has already been incorporated in this Report earlier. Apart from the details mentioned therein, no other remuneration is paid to any of the Directors.

OnlyoneDirector,Mr.BishwanathN.Puranmalkaholdsoneequityshareof`10/-jointlywithAdityaBirlaNuvoLimitedinthesharecapitaloftheCompany.NoneoftheotherDirectorsoftheCompanyhaveanyholdinginthesharecapitaloftheCompany.

IV.C. Whistle Blower Policy

TheCompanyhasaWhistleBlowerPolicytoescalateanyissuesonintegrity/businessissues/peopleissuesandgenderissues.BSLIGrievancesandDisciplinaryCommitteemembers,constitutedundertheWhistleBlowerPolicy,conductaproperandunbiasedinvestigationandascertainthecorrectnessandtruenessofthecomplaintandrecommendnecessarycorrectivemeasures,includingpunitiveactionssuchasterminationofemployment/agency/contracts.Summaryofcases,asandwhenreported,alongwithstatusisplacedbeforethePolicyholders’ProtectionCommitteefortheirreviewanddiscussion.

TheCompanyensuresconfidentialityandprotectionagainstvictimisation.Noadverseactionistakenagainstanemployeeorbusinessassociatein‘knowingretaliation’whomakesanygood-faithdisclosureofsuspectorwrongfulconducttotheBSLIGrievancesanddisciplinarycommittee.

IV.D. Management

A detailed Management Discussion and Analysis Report form part of the Annual Report being sent to the stakeholders (including) shareholders of the Company.

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V.E. Shareholders & General information

i) General Body Meetings

TheparticularsofthelastthreeAnnualGeneralMeetings(AGMs)oftheCompanyareprovidedinTable20:

AGM Financial Year Date of the AGM Time Venue

11th 2010-2011 June16,2011 10.30 a.m. BoardRoom,16thFloor,OneIndiabullsCentre,Tower1,JupiterMillCompound,841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

12th 2011-2012 June20,2012 10.30 a.m. BoardRoom,16thFloor,OneIndiabullsCentre,Tower1,JupiterMillCompound,841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

13th 2012- 2013 July02,2013 10.30 a.m. BoardRoom,16thFloor,OneIndiabullsCentre,Tower1,JupiterMillCompound,841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

Table 20

TheParticularsofthelastExtraordinaryGeneralMeetings(EGMs)oftheCompanyheldduringFY2013-14areprovidedinTable21.

Financial Year Date of the EGM Time Venue

2013-14 May 15, 2013 4.30 p.m. BoardRoom,16thFloor,OneIndiabullsCentre,Tower1,JupiterMillCompound,841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

Table 21

There was two special resolution passed by the Company during the Financial Years 2013-14 for following items:

1) Alterations in the Article of Association of the Company

2) ApprovalforBuybackofShares

ii) General Shareholder Information

Date,TimeandVenueofthe14thAnnualGeneralMeeting July2,2014,10.30a.m.,

BoardRoom,16thFloor,OneIndiabullsCentre,Tower1,JupiterMillCompound,841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

Financial Year 2013-14

Registrar and Transfer Agents MCS Limited

Registration no. of the Company as per Companies Act with the Registrar of Companies

11-128110

Registration no. of the Company as per Insurance Act with theInsuranceRegulatoryandDevelopmentAuthority

109

ISIN INE951F01015

CorporateIdentificationNumber(CIN) U99999MH2000PLC128110

PermanentAccountNumber(PAN) AABCB4623J

Registeredoffice/addressforcorrespondence OneIndiabullsCentre,Tower1,16thFloor,JupiterMillCompound, 841, S. B. Marg, Elphinstone Road, Mumbai – 400 013.

Table 22

iii) Means of Communication

AspertheIRDAguidelinesonpublicdisclosures,theinsurancecompaniesarerequiredtodisclosetheirfinancials(BalanceSheet,Profit&LossAccount,RevenueAccountandKeyAnalyticalRatios)bynewspaperpublicationandhostthesameontheirwebsiteswithinstipulatedtimelines.

Accordingly,thedisclosuresarehostedonBSLI’swebsite(www.birlasunlife.com)andadequatestepshavebeentakentoensurepublicationofrequisitedisclosureinnewspapers.

SECTION BREPORTING UNDER IRDA CORPORATE GOVERNANCE GUIDELINES (IRDA CG GUIDELINES)AdetailedreportonstatusofCompliancewiththe“CorporateGovernance”Guidelines(IRDACGguidelines)asbeingfieldonanannualbasisinCompliancewithIRDAcircularNo.IRDA/F&A/CG/081/2011datedMay2,2011.

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SECTION CREPORTING UNDER MCA GUIDELINES (MCA GUIDELINES)TheMinistryofCorporateAffairshas issuedasetofVoluntaryGuidelineson‘CorporateGovernance’and‘CorporateSocialResponsibility’ inDecember,2009.TheseguidelinesareexpectedtoserveasabenchmarkfortheCorporateSectorandalsohelptheminachievingthehigheststandardofcorporategovernance.

SomeoftheprovisionsoftheseguidelinesarealreadyinplaceasreportedelsewhereinthisReport.TheotherprovisionsoftheseguidelinesarebeingevaluatedandyourCompanywillstrivetoadoptthesameinaphasedmanner.

Details of Directors Seeking Re-appointment / Appointment at the 14th Annual General Meeting

A. Directors seeking Re-appointment / Appointment:

Name of DirectorRe-Appointment Appointment

Mr. Kumar Mangalam Birla Mr. Donald A. Stewart Mr. Pankaj Razdan

Date of Birth June14,1967 November6,1946 November16,1968

Date of Appointment August 4, 2000 December 24, 2000

October 25, 2014* (*as an Additional Director) IRDAapprovalreceivedonJanuary,2014.

QualificationChartered Accountant and MBA (London Business School)

Fellow of Institute of Actuaries andDegreeinNaturalPhilosophy(UniversityofGlasgow)

Electronics Engineer , managementdevelopmentprograms from IIM and leadership training from Centre of Leadership, USA.

ExpertiseinspecificfunctionalArea IndustrialistLife Insurance, Mutual Fund, Information Technology, Trust ServicesandActuarial

FinancialServices

ListofPublicLtd.Companies(inIndia)in which outside Directorships held

9 1 2

Membership/Chairmanships of committeesofotherPublicCompanies(includes only Audit Committee and Shareholders’/Investors’GrievanceCommittee)

Nil Nil Nil

“Certification for compliance of the Corporate Governance Guidelines”

I,AshishLakhtakiaherebycertifythatthecompanyhascompliedwiththecorporategovernanceguidelinesforInsuranceCompaniesasamendedfrom time to time and nothing has been concealed or suppressed.

Ashish Lakhtakia

Company Secretary

Place:Mumbai

Date: April 25, 2014.

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Risk Management

A. RISK MANAGEMENT FRAMEWORK TheCompanyhasanEnterpriseRiskManagement(ERM)frameworkcoveringprocedurestoidentify,assessandmitigatethekeybusiness

risks.Alignedwiththebusinessplanningprocess,theERMframeworkcoversallbusinessrisksincludingstrategicrisk,operationalrisks,investmentrisks,insurancerisksandcatastrophicrisks.ThekeybusinessrisksidentifiedareapprovedbytheBoard’sRiskManagementCommittee and monitored by the Risk Management team thereafter.

TheCompanyalsohasinplaceanOperationalRiskManagement(ORM)frameworkthatsupportsexcellenceinbusinessprocesses,systemandfacilitatesmaturedbusinessdecisionstomovetoaproactiveriskassessmentandisintheprocessofimplementingthekeyoperationalrisk components.

BSLI recognises that information is a critical business asset, and that our ability to operate effectively and succeed in a competitivemarket depends on our ability to ensure that business information is protected adequately through appropriate controls and proactivemeasures. Accordingly, BSLI has an information security framework that ensures all the information assets are safeguarded by establishing comprehensivemanagementprocessesthroughouttheorganisation.

TheCompany’sInvestmentsFunctionisgovernedbytheInvestmentCommitteeandtheAssetLiabilityManagementCommitteeappointedbytheBoardofDirectors.InvestmentPolicyandOperatingGuidelineslaiddownbytheBoardprovidetheframeworkformanagementandmitigationoftherisksassociatedwithinvestments.AssetLiabilityPolicyandvariousALMstrategiesareadoptedtoensureadequateAssetLiabilityManagement.ThesepoliciesarereviewedatfrequentintervalsbytherespectiveBoardCommitteesandapprovedbytheBoardwhererequired.

BSLIhasarobustBusinessContinuityframeworktoensureresumptionoftimesensitiveactivitieswithindefinedtimeframeatdefinedlevels.BSLIwasthe1stInsuranceCompanyinIndiatobecertifiedagainsttheBS25999standardandsuccessfullygottransitionedtoISO22301(Globally accepted standard on Business Continuity).

TheCompanythroughitsriskmanagementpolicieshassetupsystemstocontinuouslymonitoritsexperiencewithregardtootherparametersthataffectthevalueofbenefitsofferedintheproducts.Suchparametersincludepolicylapses,premiumpersistency,maintenanceexpensesandinvestmentreturns.

ERM encompasses the following areas:

Governed by Risk Policies and Operating Guidelines approved by Board Committee/Sub Committee of the board

Risk AssessmentRisk Identification

Risk monitoring,communication and

reporting

Enterprise Risk Management Framework in BSLI

Risk Response and Risk Management strategy

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Risk Policies: Thefollowingriskpoliciesgovernandimplementeffectiveriskmanagementpractices:

ProductDesignandPricingPolicy,UnderwritingandLiabilityManagementPolicy,ReinsuranceCededPolicy,CapitalManagementPolicy,InvestmentPolicies,ValuationPolicy,InformationSecurityPolicies,BusinessContinuityPolicy,OperationalRiskManagementPolicy,FraudReportingandInvestigatingPolicy,AssetLiabilityManagementPolicy,OutsourcingPolicy.

Risk Mitigation Strategies: TheCompanyisexposedtoseveralrisksinthecourseofitsbusiness.Therisksontheliabilitiesfrontmayariseduetomorethanexpected

claims.Ontheassetsfront,riskscouldariseduetothepossibilityoffluctuations intheirmarketvalue.TheCompany isalsosubject toexpenserisk,sinceuntilnewbusinessvolumesgrowsignificantly,theactualexpensesoftheCompanywillexceedtheexpensesloadedintotheproductpricing.TheCompanyhasimplementedadequatesafeguardstomitigatetheserisks.Theoverallbusinessrisksandmitigationstrategies are as are described below:

Strategic Risk RisktofutureearningsorcapitalintermsoffailuretoachievetheCompany’sstrategicorlong-termbusinessplans,either through incorrect choices or improper implementation of those choices.

Mitigation Strategy:StrategicrisksaremanagedthroughriskidentificationandreviewprocessthroughtheEnterpriseRisk Management framework. Strategic risks and mitigating action plans are monitored by the Risk Management Committee.

Investment Risk Risk to Investment Performance can be due to Systematic Risks like Markets, Interest Rates, Liquidity, etc. orUnsystematicRisklikethecompanyspecificorIndustrySpecificRisks.TheseriskscanimpacttheGuarantees,otherthanhamperingtheInvestmentperformanceontemporary/permanentbasis.

Mitigation Strategy:Robustgovernancestructure (InvestmentCommittee)andwelldefined investmentpolicies&processesensurethattherisks involved in investmentsareproperly identifiedandacceptable levelsaredefined.Stringent investment norms and approval structure ensures healthy portfolio while delivering the expectedperformance.AllRegulatoryandInternalnormsarebuiltintheInvestmentsystem,whichmonitorstheInvestmentlimits andexposurenormson real-timebasis.Thecompanyuses systems likeMSCIBarraOne to evaluateandmonitor risks.

Asset Liability Management (ALM) Risk

Anasset-liabilitymismatchoccurswhenthefinancialtermsofaninstitution’sassetsandliabilitiesdonotcorrespond.Thesecanleadtonon-payment/defermentofclaims,expenses,etc.

Mitigation Strategy: Robust governance structure (ALMCommittee) andwell definedAsset LiabilityManagementframework ensures periodic monitoring of the Asset-Liability position of the company. BSLI’s Asset Liability ManagementTechniquesaimstomanagethevolume,mix,maturity,ratesensitivity,qualityandliquidityofassetsandliabilitiesasawholesoastoattainapredeterminedacceptablerisk/rewardratio.Strategiesarereviewedandrevisedbasedontheperiodicmonitoring.VariousanalysesarecarriedouttogaugetheimpactoftheInterestratemovements,marketmovementsandmortalityrateassumptions.FurthertheNAVguaranteeproductsusesproprietarymonitoringmechanismstoensureadequateALM.

Operational Risk Theuncertaintyarisingfrommorethanexpectedlossesordamagetofinancesorreputationresultingfrominadequateorfailedinternalprocesses,controls,people,systemsorexternalevents.

Mitigation Strategy: Operational risks are governed through Operational RiskManagement policy. The Companymaintainsanoperational lossdatabasetotrackandmitigaterisksresulting infinancial losses.Thecompanyhasalso initiated a Risk Control Self Assessment process to embed the control testing as a part of day to day operations. Tocontroloperationalrisk,operatingandreportingprocessesarereviewedandupdatedregularly.Ongoingtrainingthroughinternalandexternalprogramsisdesignedtoequipstaffatalllevelstomeetthedemandsoftheirrespectivepositions.The Company has a Business Continuity Plan in place tomanage any business interruption risk.TheCompany is one of the few Indian Insurance companies to be ISO 22301 (Globally accepted standard on Business Continuity) certified.Fraudmanagement ishandled throughan internal committeeand isgovernedby theFraudReportingandInvestigationPolicy.

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Governance through Board Level Risk Review Committee & ISO 22301 Framework

Planning through

Business Impact

Analysis &

Risk Assessment

Implementation through

Business Continuity Strategies

Crisis Management

Plan/Alternate Site & DR Plan

Exercising through Disaster

Recovery/Alternate Site, Call Tree

Testing, CMT drills Evacuation Drills &

Facility Walkthrough

Review through Internal/ISO 22301

Continual Assessment & Management

Review Meeting with BCMS Steering

Committee

Embedding Business Continuity in the Culture through Risk Awareness Week, Workshops/Trainings, Screen savers & Mailers

Insurance Risk Theuncertaintyofproductperformanceduetodifferencesbetweentheactualexperienceandexpectedassumptionsaffectingamountofclaims,benefitspayments,expenses,etc.

Mitigation Strategy: The Company through its risk management policies has set up systems to continuously monitor its experiencewithregardtootherparametersthataffectthevalueofbenefitsofferedintheproducts.Suchparametersincludepolicylapses,premiumpersistency,maintenanceexpensesandinvestmentreturns.

Astrongunderwritingteamisinplacetoreviewallproposalsfromclients,supportedbycomprehensiveprocessesandprocedures,andguidedbyinternationalexperts.Theobjectiveoftheunderwritingteamistominimisetherisksofabnormalmortalityandmorbiditybyacquiringadequateinformation,todetermine,whethertoacceptindividuallives,andifso,theextrapremiumifany,tocompensateforanyadditionalrisk.

Theoperatingexpensesaremonitoredveryclosely.ManyproductsofferedbytheCompanyalsohaveaninvestmentguarantee.TheCompanyhassetasideadditionalreservestocoverthisrisk.Further,thepossiblefinancialeffectofadversemortalityandmorbidityexperiencehasbeenreducedbyenteringintoreinsuranceagreements.

Further,thepossiblefinancialeffectofadversemortalityandmorbidityexperiencehasbeenreducedbyenteringintoreinsuranceagreementswithRGA,MunichReandSwissRe(internationalreinsurers)forindividuallifebusiness,RGAand Munich Re (international reinsurers) for group business. All reinsurers are specialist international reinsurance companieswithexcellent reputationandsignificantfinancialstrength.TheCompanyhasentered intoaseparateagreementwithRGAtocoverthecatastrophicrisksundergroupbusiness.

Information Security Risk

TheriskarisingfromITsystems(DataLeakage,ApplicationVulnerabilities,LackofSegregationofDutiesandAccessControl),Humanerror,etc.,cancausedamagetofinancesorreputation.

Mitigation Strategy: Information Security risks are governed through Information Security policy. The Companyhas a comprehensive policy designed to complywith privacy and/or data protection legislations as specified inIndianInformationTechnologyAct2008andNotificationdated11thApril,2011onprotectionofsensitivepersonalinformationanditprovidesdirectiontoInformationSecuritystaffaswellasmanagementandemployeesregardingtheirresponsibilitiesfortheInformationSecurityfunction.WealsoperformriskassessmentbeforeanyITapplications.Ongoingtrainingthroughinternalandexternalprogramsisdesignedtoequipstaffatalllevelstomeetthedemandsoftheirrespectivepositions.

Business Continuity Management Policy: Tohaveaplannedresponseintheeventofanycontingencyensuringrecoveryofcriticalactivitiesatagreedlevelswithinagreedtimeframe

thereby complyingwith various regulatory requirements andminimising thepotential business impact toBSLI.Additionally to create asystemthatfosterscontinuousimprovementofbusinesscontinuitymanagement.

Business Continuity Management Objectives: 1. EnsuringaProactiveresponsetoanycontingency.

2. Ensuringrecoveryofidentifiedcriticalactivitieswithinagreedtimeframe.

3. Ensuringthatweadheretoourclients,contractual,legal&regulatoryrequirements.

Business Continuity Management Framework:

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Enterprise Risk Management Report

B. RISK MANAGEMENT COMMITTEE Governance structure:

Board of Directors

Risk Management Committee

Risk Management Team

Function Heads

Composition,Meeting,attendanceandotherdetailsofRiskManagementCommitteeisdetailedinCorporateGovernanceReport.

TheriskmanagementstructurecomprisesoftheRiskManagementTeamandFunctionalHeadsgovernedbyBoardlevelRiskManagementCommittee.BrieflytheRolesandResponsibilitiesoftheCommitteeissummarisedbelow:

Scope & Term of

Reference

Risk Management Committee

Risk Management

– Requiresmanagement to identify andpresent to theCommittee,major areas of risk facing thebusinessactivitiesoftheCompanyandstrategiestomanagethoserisks.

– Reviews, at least annually, the adequacy of and compliance with the policies implemented for themanagementandcontrolofrisk,includinginvestmentpolicies,asset-liabilityriskmanagement,operationalrisk,managementofrisktoreputation,managementofoutsourcingarrangementsandapproveschangestothe foregoing as appropriate.

Compliance

– Reviewsatleastannuallyandapproveschangestopoliciesorprogramsthatprovideforthemonitoringofcompliancewithlegalandregulatoryrequirementsincludinglegislativecompliancemanagementsystems.

– Reviewsthestatusofcomplianceandregulatoryreviewsandbusinesspracticereviewsworldwide,includingat least annually, compliance with codes of conduct of the Aditya Birla Group and Sun Life Financial.

– Reviewsmarketconductpractices.

– Reviews procedures for complying with anti-money laundering and suppression of terrorism laws andregulationsworldwideandmonitorsandreviewstheeffectivenessandcompliancewiththoseprocedures.

Other

– Performssuchotherdutiesandexercisessuchotherpowersasmay,fromtimetotime,beassignedtoorvestedintheCommitteebytheBoard.

– InadditiontoaboveanysuchotherdutiesandexercisesasmaybespecifiedbyIRDAbywayofnotificationsor necessary amendments in applicable statutes and/or guidelines, from time to time.

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Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

To the Members of Birla Sun Life Insurance Company Limited

1. Report on the Financial Statements

WehaveauditedtheaccompanyingfinancialstatementsofBIRLASUNLIFEINSURANCECOMPANYLIMITED(‘theCompany’)whichcomprisetheBalanceSheetasatMarch31,2014,therelatedRevenueAccount(alsocalledas“Policyholders’Account”or“thetechnicalaccount”),thestatementofProfitandLoss(alsocalledas“Shareholders’Account”or“theNon-technicalAccount”)andtheReceiptsandPaymentsAccountfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

2. Management’s Responsibility for the Financial Statements

ManagementisresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewoftheBalanceSheet,therelatedRevenueAccount, theProfitandLossAccountand theReceiptsandPaymentsAccountof theCompany inaccordancewithaccountingprinciplesgenerallyacceptedinIndia,includingtheprovisionsofTheInsuranceAct,1938(the“InsuranceAct”),theInsuranceRegulatoryandDevelopmentAuthorityAct,1999(the“IRDAAct”),theInsuranceRegulatoryandDevelopmentAuthority(PreparationofFinancialStatements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulations”), orders/directionsissuedbytheInsuranceRegulatoryandDevelopmentAuthority(the“IRDA”)inthisregard,andtheAccountingStandards,totheextentapplicable,notifiedundertheCompaniesAct,1956,readwithGeneralCircular8/2014dated4April,2014issuedbytheMinistry ofCorporateAffairs.Thisresponsibilityincludesthedesign,implementationandmaintenanceofinternalcontrolrelevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudor error.

3. Auditors’ Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeStandardsonAuditingissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.Theproceduresselecteddependon theauditor’s judgment, including theassessmentof the risksofmaterialmisstatementof thefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingthe appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

4. Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thefinancialstatementsarepreparedinaccordancewiththerequirementsoftheInsuranceAct,theIRDAAct,theIRDAFinancialStatementsRegulationsandtheCompaniesAct,1956totheextentapplicableandinthemannersorequired,andgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerally accepted in India, as applicable to Insurance Companies:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(b) inthecaseofRevenueAccount,ofthenetsurplusfortheyearendedonthatdate;

(c) inthecaseofProfitandLossAccount,oftheprofitfortheyearendedonthatdate;and

(d) inthecaseoftheReceiptsandPaymentsAccount,ofthereceiptsandpaymentsfortheyearendedonthatdate.

5. Other Matter

TheactuarialvaluationofliabilitiesforlifepoliciesinforceistheresponsibilityoftheCompany’sAppointedActuary(the“AppointedActuary”).Theactuarialvaluationoftheseliabilitiesforlifepoliciesinforceandforpoliciesinrespectofwhichpremiumhasbeendiscontinuedbutliabilityexistsasat31stMarch,2014hasbeendulycertifiedbytheAppointedActuaryandinhisopinion,theassumptionsforsuchvaluationareinaccordancewiththeguidelinesandnormsissuedbytheIRDAandtheInstituteofActuariesofIndiainconcurrencewiththeIRDA.WehaverelieduponAppointedActuary’scertificateinthisregardforformingouropiniononthefinancialstatementsoftheCompany.

6. Report on Other Legal and Regulatory Requirements

1. AsrequiredbytheIRDAFinancialStatementsRegulations,wehaveissuedaseparatecertificatedatedApril25,2014certifyingthemattersspecifiedinparagraphs3and4ofScheduleCtotheIRDAFinancialStatementsRegulations.

2. AsrequiredbytheIRDAFinancialStatementsRegulations,readwithSection227(3)oftheCompaniesAct,1956,wereportthat:

(a) Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesoftheauditandhavefoundthemtobesatisfactory;

(b) Inouropinionandtothebestofour informationandaccordingtotheexplanationsgiventous,properbooksofaccountasrequiredbylawhavebeenmaintainedbytheCompany,sofarasappearsfromourexaminationofthosebooks;

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Auditors’ Report

(c) As theCompany’s financial accounting system is centralised, no returns for the purposes of our audit are prepared at thebranches of the Company;

(d) TheBalanceSheet,theRevenueAccount,theProfitandLossAccountandtheReceiptsandPaymentsAccountreferredtointhisreport are in agreement with the books of account;

(e) TheBalancesheet,theRevenueAccount,theProfitandLossAccountandtheReceiptsandPaymentsAccountdealtwithbythisreportcomplywiththeAccountingStandardsnotifiedundertheCompaniesAct,1956readwiththeGeneralCircular8/2014dated4April, 2014 issuedby theMinistry ofCorporateAffairs, to theextent theyarenot inconsistentwith theaccountingprinciples prescribed in the Regulations and orders/directions issued by IRDA in this regard:

(f) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,investmentshavebeenvaluedinaccordancewiththeprovisionsoftheInsuranceAct,theRegulationsand/ororders/directionsissuedbyIRDAinthisregard;

(g) The accounting policies selected by the Company are appropriate and are in compliance with the applicable Accounting Standardsnotifiedunder theCompaniesAct,1956readwith theGeneralCircular8/2014dated4April,2014 issuedby theMinistry of Corporate Affairs, with the accounting principles as prescribed in the IRDA Financial Statements Regulations and orders / directions issued by IRDA in this regard; and

(h) OnthebasisofwrittenrepresentationsreceivedfromtheDirectorsoftheCompany,asonMarch31,2014andtakenonrecordbytheBoardofDirectors,noneoftheDirectorsisdisqualifiedasonMarch31,2014frombeingappointedasaDirectorintermsof clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co.Chartered Accountants Chartered Accountants

ICAIFirmRegistrationNo.:101049W ICAIFirmRegistrationNumber:105146W

per Amit Kabra Hasmukh B. DedhiaPartner Partner

MembershipNo.094533 MembershipNo.33494Mumbai, 25th April, 2014 Mumbai Mumbai

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Birla Sun Life Insurance

Annexure to the Auditors’ Report

Independent Auditors’ Certificate

[Ref:CertificateinaccordancewiththeRegulation13(D)(7)oftheIRDA(Investment)(5thAmendment)Regulations(“theRegulations”),2013]

1. AttherequestofBirlaSunLifeInsuranceCompanyLimited(‘theCompany’),wehaveperformedtheproceduresstatedinparagraph2below,forthepurposeofissuingacertificateinconnectionwiththeRegulations,regardingthedeclarationoftheNetAssetValue(‘NAV’)oftheschemes of the Company as at March 31, 2014.

2. Inthisconnection,wehaveperformedthefollowingprocedures:

(a) Obtained representation from the management that the Company has declared March 31, 2014 as a business day for accepting applicationformsandthatithasdeclaredNAVforMarch31,2014;

(b) ObtainedthelistofNewBusinessapplications,Renewalreceipts,applicationsforSurrender,Free–LookCancellation,FundSwitches,Withdrawal,PartialWithdrawalandTopUpreceivedinrespectofUnitLinkedProductsonMarch31,2014(togetherreferredtoas“Application Forms”), from the Management;

(c) SelectedasampleofApplicationFormsfromlistingmentionedinparagraph2(b)aboveandverifiedwhether:

i. The applications received onMonday,March 31, 2014, upto 3.00 p.m. have been appropriately stamped; and the NAV of March31,2014isappliedforapplicationsreceivedbytheCompanyupto3.00p.m.onMonday,March31,2014fortheselectedsamples; and

ii. TheapplicationsreceivedonMonday,March31,2014,after3.00p.m.hourshavebeenappropriatelystamped;andtheNAVofApril1,2014isappliedfortheapplicationsreceivedbytheCompanyafter3.00p.m.hoursonMonday,March31,2014fortheselected samples.

3. The compliance with conditions stated in the circular is the responsibility of the Company’s management. Our responsibility is to perform the above-mentionedproceduresontheparticularsandstateourfindings.Weperformedtheabove-mentionedprocedures,inaccordancewiththeGuidanceNoteonAuditReportsandCertificatesforSpecialPurposesissuedbytheInstituteofCharteredAccountantsofIndia(“ICAI”).Theabove-mentionedproceduresincludeexaminingevidencesupportingtheparticularsonatestbasis.Further,ourscopeofworkdidnotinvolveusperformingaudittestsforthepurposesofexpressinganopiniononthefairnessoraccuracyofanyofthefinancialinformationorthefinancialstatementsoftheCompanytakenasawhole.Wehavenotperformedanaudit,theobjectiveofwhichwouldbetheexpressionofanopiniononthefinancialstatements,specifiedelements,accountsoritemsthereof,forthepurposeofthiscertificate.Accordingly,wedonotexpresssuchopinion.

4. Basedontheproceduresperformedbyus,asmentionedinparagraph2above,accordingtotheinformationandexplanationsprovidedtousandrepresentationbytheCompany’smanagement,weconfirmthat:

(a) The Company had declared March 31, 2014 as a business day for accepting proposal forms;

(b) TheCompanyhasdeclaredNAVforMarch31,2014;

(c) TheapplicationsreceivedonMonday,March31,2014upto3.00p.m.havebeenstampedassuchandthattheNAVofMarch31,2014isappliedforproposalsreceivedupto3.00p.m.;and

(d) TheapplicationreceivedonMonday,March31,2014after3.00p.m.havebeenstampedassuchandthattheNAVofnextfinancialyeari.e.April1,2014isappliedforproposalreceivedafter3.00p.m.

5. Theconcurrentauditorsof theCompany,M/s.M.P.Chitale&Co.,CharteredAccountantshave issuedacertificatedatedApril22,2014confirmingthecompliancewithrequirementsofRegulation13(D)(5)oftheRegulations.Wehavereadthecertificateandfoundthesametobe in order.

6. ThiscertificateisissuedattherequestoftheCompanysolelyforuseoftheCompanyforinclusionintheannualaccountsasperRegulation13(D)(7)oftheRegulationsandisnotintendedtobeusedordistributedforanyotherpurpose.Wehavenoresponsibilitytoupdatethiscertificateforeventsandcircumstancesoccurringafterthedateofthiscertificate.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co.Chartered Accountants Chartered Accountants

ICAIFirmRegistrationNo.:101049W ICAIFirmRegistrationNumber:105146W

per Amit Kabra Hasmukh B. DedhiaPartner Partner

MembershipNo.094533 MembershipNo.33494Mumbai, 25th April, 2014 Mumbai Mumbai

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Annexure to the Auditors’ Report

Independent Auditors’ Certificate(Referredtoinparagraph1ofourReportonOtherLegalandRegulatoryRequirementsformingpartoftheIndependentAuditors’ReportdatedApril 25, 2014)

Thiscertificateisissuedtocomplywiththeprovisionsofparagraphs3and4ofScheduleCoftheInsuranceRegulatoryandDevelopmentAuthority(PreparationofFinancialStatementsandAuditor’sReportofInsuranceCompanies)Regulations2002,(the“Regulations”)readwithRegulation3of the IRDA Financial Statements Regulations.

ManagementoftheCompanyisresponsibleforcomplyingwiththeprovisionsofthe“InsuranceAct,the“IRDAAct,the“IRDAFinancialStatementsRegulations, orders/directions issued by the the “IRDA” which includes the preparation of the Management Report. This includes collecting, collatingandvalidatingdataanddesigning,implementingandmonitoringofinternalcontrolssuitableforensuringcomplianceasaforesaid.

Our responsibility, for the purpose of this certificate, is limited to certifyingmatters contained in paragraphs 3 and 4 of Schedule C of theRegulations.WeconductedourexaminationinaccordancewiththeGuidanceNoteonAuditReportsandCertificatesforSpecialPurposesissuedby the Institute of Chartered Accountants of India (the ‘ICAI’).

Inaccordancewiththeinformationandexplanationsgiventousandtothebestofourknowledgeandbeliefandbasedonourexaminationofthebooks of account and other records maintained by the Company for the year ended March 31, 2014, we certify that:

1. WehavereviewedtheManagementReportattachedtothefinancialstatementsfortheyearendedMarch31,2014,andonthebasisofourreview,thereisnoapparentmistakeormaterialinconsistencieswiththefinancialstatements;

2. Basedonmanagement representationsandcompliancecertificatessubmitted to theBoardofDirectorsby theofficersof theCompanycharged with compliance and the same being noted by the Board, we certify that the Company has complied with the terms and conditions of registration stipulated by the IRDA;

3. Wehaveverifiedthecashbalances,totheextentconsiderednecessary,andsecuritiesrelatingtotheCompany’sloansandinvestmentsasatMarch31,2014,byactualinspectionoronthebasisofcertificates/confirmationsreceivedfromtheCustodiansand/orDepositoryParticipants appointed by the Company, as the casemay be.As atMarch 31, 2014, the Company does not have reversions and lifeinterests;

4. The Company is not a trustee of any trust; and

5. NopartoftheassetsofthePolicyholders’FundshasbeendirectlyorindirectlyappliedincontraventiontotheprovisionsoftheInsuranceAct,1938,relatingtotheapplicationandinvestmentsofthePolicyholders’Funds.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co.Chartered Accountants Chartered Accountants

ICAIFirmRegistrationNo.:101049W ICAIFirmRegistrationNumber:105146W

per Amit Kabra Hasmukh B. DedhiaPartner Partner

MembershipNo.094533 MembershipNo.33494Mumbai, 25th April, 2014 Mumbai Mumbai

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Birla Sun Life Insurance

Revenue Account

AsrequiredbySection40B(4)oftheInsuranceAct,1938wecertifythatallexpensesofManagementinrespectoflifeinsurancebusinesstransactedinIndiabytheCompanyhavebeen

fullydebitedtothePolicyholders’Account.

In terms of our report attached.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co. For and on behalf of the Board of DirectorsChartered Accountants Chartered Accountants ICAIFirmRegistrationNo.101049W ICAIFirmRegistrationNo.105146W

per Amit Kabra Hasmukh Dedhia Kumar Mangalam Birla Donald A. Stewart Tarjani VakilPartner Partner Chairman Director Director MembershipNo.094533 MembershipNo.33494

Pankaj Razdan Mayank Bathwal Amit Jain Managing Director & CEO Deputy Chief ChiefFinancialOfficer

ExecutiveOfficer

Anil Kumar Singh Ashish LakhtakiaChiefActuarialOfficer Company Secretary

Mumbai, 25th April, 2014 & Appointed Actuary

BIRLA SUNLIFE INSURANCE COMPANY LIMITED Form A-RARegistration Number: 109 dated 31st January 2001

Policyholders’ Account (Technical Account)(Amounts in thousands of Indian Rupees)

Particulars ScheduleYear ended Year ended

31st March 2014 31st March 2013

Premiums earned - Net(a) Premium 1 48,330,521 52,162,991 (b) Reinsurance ceded (1,882,008) (1,645,530)(c) Reinsurance accepted – –

Sub-Total 46,448,513 50,517,461

Income from investments(a) Interest,Dividend&Rent–Gross(ReferSchedule16Note39) 11,758,483 10,924,611 (b) ProfitonSale/RedemptionofInvestments 10,668,152 11,114,871 (c) (Loss)onSale/RedemptionofInvestments (7,676,685) (4,724,259)(d) Transfer/Gain(Loss)onrevaluation/ChangeinFairvalue 10,208,794 3,385,269

Sub-Total 24,958,744 20,700,492

Other Income(a) ContributionfromtheShareholders’Account(ReferSchedule16Note6) 2,580,793 1,994,559 (b) Others (Interest, etc.) 365,427 366,568

Sub-Total 2,946,220 2,361,127

Total (A) 74,353,477 73,579,080

Commission 2 2,347,130 3,004,767 OperatingExpensesrelatedtoInsuranceBusiness 3 10,381,707 11,597,047 Provisionfordoubtfuldebts – –Bad Debts written off – –ProvisionforTax(includingearlieryears) – –Provision(otherthantaxation)(a) Fordiminutioninvalueofinvestments(net) – –(b) Others – –

Total (B) 12,728,837 14,601,814

Benefitspaid(Net) 4 36,654,284 36,586,379 InterimBonusesPaid 734 –Changeinvaluationofliabilityinrespectoflifepolicies(a) Gross 10,429,613 7,150,889 (b) FundReserve 10,372,440 10,394,052 (c) PremiumDiscontinuanceFund–Linked 2,704,030 1,612,473 (d) (Amount ceded in Re-insurance) (2,376,717) (1,169,350)(e) Amount accepted in Re-insurance – –

Total (C) 57,784,384 54,574,443

Surplus(D)=(A)-(B)-(C) 3,840,256 4,402,823

AppropriationsTransfertoShareholders’Account(ReferSchedule16Note6) 5,202,299 6,266,015 TransfertoOtherReserve – –(Release from)/Transfer to Funds for Future Appropriation (1,362,041) (1,863,192)

Total (D) 3,840,258 4,402,823

The total surplus as mentioned below:(a) InterimBonusesPaid 734 –(b) AllocationofBonustoPolicyholders 380,045 49,379 (c) SurplusshownintheRevenueAccount 3,840,258 4,402,823

Total Surplus [(a)+(b)+(c)] 4,221,037 4,452,202

SignificantAccountingPoliciesandDisclosures 16TheschedulesandaccompanyingnotesareanintegralpartofthisRevenueAccount

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Profit and Loss Account

BIRLA SUNLIFE INSURANCE COMPANY LIMITED Form A-PLRegistration Number: 109 dated 31st January 2001

Shareholders’ Account (Non-technical Account)(Amounts in thousands of Indian Rupees)

Particulars Schedule Year ended Year ended

31st March 2014 31st March 2013

AmountstransferredfromPolicyholders’Account(TechnicalAccount) 5,202,299 6,266,015 (ReferSchedule16Note6)

Income from Investments(a) Interest,Dividend&Rent–Gross(ReferSchedule16Note39) 1,053,255 1,129,719 (b) Profitonsale/redemptionofinvestments 108,540 39,372 (c) (Loss)onsale/redemptionofinvestments (12,419) (9,188)

Other Income – –

Total (A) 6,351,675 7,425,918

Expenseotherthanthosedirectlyrelatedtotheinsurancebusiness 63,346 16,328 Bad debts written off – –Provision(otherthantaxation)(a) Fordiminutioninthevalueofinvestment(net) – –(b) Provisionfordoubtfuldebts – –(c) Others – –(d) ContributiontothePolicyholders’Account 2,580,793 1,994,559

(ReferSchedule16Note6)

Total (B) 2,644,139 2,010,887

Profitbeforetax 3,707,536 5,415,031 Provisionfortaxation – –Profitaftertax 3,707,536 5,415,031

Appropriations(a) Balance at the beginning of the period (12,424,921) (13,762,293)(b) Interimdividendsduringtheperiod – 1,969,500 (c) Proposedfinaldividend 700,000 1,181,700 (d) Dividenddistributiontax 118,965 520,332 (e) Transfertoreserves/otheraccounts – 406,127

Loss carried forward to Balance Sheet (9,536,350) (12,424,921)

EarningPerShare(BasicandDiluted),FaceValueof` 10 (in `) 1.94 2.75 (ReferSchedule16Note11)

SignificantAccountingPoliciesandDisclosures 16TheschedulesandaccompanyingnotesareanintegralpartofthisProfitandLossAccount

In terms of our report attached.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co. For and on behalf of the Board of DirectorsChartered Accountants Chartered Accountants ICAI Firm ICAI FirmRegistrationNo.101049W RegistrationNo.105146W

per Amit Kabra Hasmukh Dedhia Kumar Mangalam Birla Donald A. Stewart Tarjani VakilPartner Partner Chairman Director Director MembershipNo.094533 MembershipNo.33494

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief ChiefFinancialOfficer

ExecutiveOfficer

Anil Kumar Singh Ashish LakhtakiaChiefActuarialOfficer Company Secretary

Mumbai, 25th April, 2014 & Appointed Actuary

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Balance Sheet

In terms of our report attached.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co. For and on behalf of the Board of DirectorsChartered Accountants Chartered Accountants ICAI Firm ICAI FirmRegistrationNo.101049W RegistrationNo.105146W

per Amit Kabra Hasmukh Dedhia Kumar Mangalam Birla Donald A. Stewart Tarjani VakilPartner Partner Chairman Director Director MembershipNo.094533 MembershipNo.33494

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief ChiefFinancialOfficer

ExecutiveOfficer

Anil Kumar Singh Ashish LakhtakiaChiefActuarialOfficer Company Secretary

Mumbai, 25th April, 2014 & Appointed Actuary

BIRLA SUNLIFE INSURANCE COMPANY LIMITED Form A-BSRegistration Number: 109 dated 31st January 2001

Balance Sheet as at 31st March, 2014(Amounts in thousands of Indian Rupees)

Particulars ScheduleAs at As at

31st March 2014 31st March 2013Sources of FundsShareholders’ funds:Share Capital 5 19,012,080 19,695,000 ReservesandSurplus(ReferSchedule16Note36) 6 2,682,948 4,800,000 Credit/(Debit)/FairValueChangeAccount 1,409 27

Sub-Total 21,696,437 24,495,027 Borrowings 7 – –Policyholders’Funds:Credit/(Debit)FairValueChangeAccount 40,622 (3,667)PolicyLiabilities 28,353,255 20,300,360 InsuranceReserves – –ProvisionforLinkedLiabilities 187,232,642 187,068,996 Funds for discontinued policies(i) Discontinued on account of non-payment of premium 4,754,442 2,050,412 (ii) Others – –Credit/(Debit)FairValueChangeAccount(Linked) 14,460,110 4,251,315 Total Linked Liabilities 206,447,194 193,370,723

Sub-Total 234,841,071 213,667,416 Funds for Future Appropriation– Linked Liabilities 733,351 2,095,678

Total 257,270,859 240,258,121

Application of FundsInvestmentsShareholders’ 8 13,292,091 13,706,870 Policyholders’ 8A 28,007,170 22,214,668 AssetsHeldtoCoverLinkedLiabilities 8B 206,447,194 193,370,723 Loans 9 284,669 280,690 FixedAssets 10 399,243 342,351 Current AssetsCash and Bank Balances 11 5,076,825 5,442,434 AdvancesandOtherAssets 12 3,540,988 3,068,528

Sub-Total (A) 8,617,813 8,510,962

Current Liabilities 13 7,786,437 8,574,105 Provisions 14 1,121,107 1,612,832

Sub-Total (B) 8,907,544 10,186,937 Net Current Assets (C) = (A – B) (289,731) (1,675,975)

MiscellaneousExpenditure – –(TotheextentnotwrittenofforAdjusted) 15DebitBalanceinProfitandLossAccount(Shareholders’Account) 9,130,223 12,018,794 (ReferSchedule16Note36)

Total 257,270,859 240,258,121 SignificantAccountingPoliciesandDisclosures 16The schedules and accompanying notes are an integral part of this Balance Sheet

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Schedule 1Premium(Amounts in thousands of Indian Rupees)

ParticularsYear ended Year ended

31st March 2014 31st March 2013

1 FirstYearPremium 16,387,172 18,101,995 2 RenewalPremium 31,355,621 33,797,861 3 SinglePremium 587,728 263,135

Total Gross Premium 48,330,521 52,162,991

PremiumIncomefromBusinesswritten:In India 48,330,521 52,162,991 Outside India

Total Premium 48,330,521 52,162,991

Note: ReferSchedule16Note2(c)(i)

Schedule 2Commission expenses(Amounts in thousands of Indian Rupees)

ParticularsYear ended Year ended

31st March 2014 31st March 2013

CommissionPaid

Direct – FirstYearPremium 1,486,361 1,824,484

RenewalPremium 851,244 1,175,774

SinglePremium 9,525 4,509

Sub-total 2,347,130 3,004,767

Add: Commission on Re-insurance Accepted – –

Less: Commission on Re-insurance Ceded – –

Others:

Bonus Commission – –

Net Commission 2,347,130 3,004,767

Breakup of Commission

Particulars

IndividualAgents 1,530,468 1,766,249

Brokers 274,460 274,396

Corporate Agents 541,448 962,568

Referral 754 1,554

Total 2,347,130 3,004,767

Note:ReferSchedule16Note2(e)

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Birla Sun Life Insurance

Schedule 3Operating Expenses Related to Insurance Business(Amounts in thousands of Indian Rupees)

ParticularsYear ended Year ended

31st March 2014 31st March 2013

1 Employees’remuneration,welfarebenefitsandothermanpowercosts 5,064,391 5,333,186

2 Travel,conveyanceandvehiclerunningexpenses 180,675 239,430

3 Trainingexpenses 40,786 67,201

4 Rents,ratesandtaxes 714,507 805,936

5 Repairs & maintenance 251,514 271,005

6 Printingandstationery 87,188 120,188

7 Communicationexpenses 161,506 219,630

8 Legal and professional charges 122,339 24,370

9 Medical fees 40,376 56,976

10 Auditor’sfees,expenses,etc.

(a) (i) as auditor 5,400 5,400

(ii) outofpocketexpenses 626 322

(b) asadvisororinanyothercapacity,inrespectof

(i) Taxationservices/matters – –

(ii)Managementservices 1,014 1,318

11 Advertisementandpublicity 757,085 946,668

12 Interest and bank charges 156,755 99,487

13 Others: 1) Distributionexpenses 526,874 463,032

2) Agentsrecruitment,seminarandotherexpenses 11,186 26,628

3) Recruitmentandseminarexpenses 53,698 113,264

4) ITexpenses(includingmaintenance) 363,272 413,385

5) Policystamps 161,574 172,829

6) (Profit)/Lossonsaleofassets (1,339) 7,455

7) ServiceTaxexpenditureincludingprovisionforunutilisedcredit* (108,275) –

8) Electricityexpenses 178,546 202,607

9) Miscellaneousexpenses 5,141 33,608

10) Outsourcingexpenses 252,490 314,469

14 Depreciation 163,949 172,661

15 Servicetaxonpremium 1,190,429 1,485,992

Total 10,381,707 11,597,047

*Includesreversalofprovisionsrelatingtounutilisedcreditofservicetaxforearlieryears.

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Schedule 4Benefits Paid (Net)(Amounts in thousands of Indian Rupees)

ParticularsYear ended Year ended

31st March 2014 31st March 2013

1 Insurance Claims(a) Claims by Death 3,394,930 3,134,917 (b) ClaimsbyMaturity(ReferSchedule16Note39) 599,761 252,325 (c) Annuities/Pensionpayment 4,549 2,118 (d) Otherbenefits (i) Surrender 33,816,203 34,348,092 (ii) Riders 55,702 47,533 (iii) Health 8,866 6,746 (iv) SurvivalandOthers 183,224 108,414

2 (Amount ceded in reinsurance):(a) Claims by Death (1,403,651) (1,310,299)(b) Claims by Maturity – –(c) Annuities/PensionPayment – –(d) Otherbenefits(Health) (5,300) (3,467)

3 Amount accepted in reinsurance:(a) Claims by Death – –(b) Claims by Maturity – –(c) Annuities/PensionPayment – –(d) Otherbenefits – –

Total 36,654,284 36,586,379

BenefitspaidtoClaimants1 In India 36,654,284 36,586,379 2 Outside India – –

Total 36,654,284 36,586,379

Note:ReferSchedule16Note2(d)

Schedule 5Share Capital(Amounts in thousands of Indian Rupees)

ParticularsAs at As at

31st March 2014 31st March 2013

1 Authorised Capital3,750,000,000EquitySharesof` 10/- each 37,500,000 37,500,000

2 Issued,Subscribed&Paid-upCapital1,901,208,000EquityShares(PreviousYear: 19,012,080 19,695,000 1,969,500,000EquityShares)of` 10/- each fully paid upLess:PreliminaryExpenses – –

Total 19,012,080 19,695,000

Note: Oftheabove,1,406,893,920EquityShares(PreviousYear:1,457,430,000equityshares)of 10/-eachareheldbyAdityaBirlaNuvoLimited,the holding Company.

During theyear,68,292,000EquityShareshaving facevalueof` 10/- each were bought back at premium of ` 31/- per share for an aggregate consideration of ` 2,799,972/-.

Schedules

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Schedule 5APattern of shareholding (As certified by the Management)(Amounts in thousands of Indian Rupees)

ShareholderAs at 31st March 2014 As at 31st March 2013

Number of Shares % of Holding Number of Shares % of Holding

Promoters:

Indian 1,406,893,920 74% 1,457,430,000 74%

Foreign 494,314,080 26% 512,070,000 26%

Others – – – –

Total 1,901,208,000 100% 1,969,500,000 100%

Schedule 6Reserves and Surplus(Amounts in thousands of Indian Rupees)

ParticularsAs at As at As at As at

31st March 2014 31st March 2014 31st March 2013 31st March 2013

1 CapitalReserve – –2 CapitalRedemptionReserve# 682,920 –3 SharePremium

Opening balance 4,800,000 4,800,000 Add: Additions during the year – – Less: Utilised during the year 2,799,972 2,000,028 – 4,800,000

4 RevaluationReserve – –5 Generalreserve

Opening balance 406,127 – Add: Additions during the year – 406,127 Less:DebitbalanceofProfit&LossAccount* 406,127 406,127 Less: Utilised during the year – – – –

6 CatastropheReserve – –7 BalanceofprofitinProfitandLossAccount – –

Total 2,682,948 4,800,000

Note: # 682,920/-,equivalent to the facevalueof68,292,000EquitySharesboughtbackduring theyear,hasbeentransferred tocapitalredemptionreservefromfreereserve(sharepremium).

* ReferSchedule16Note36

Schedule 7Borrowings(Amounts in thousands of Indian Rupees)

ParticularsAs at As at

31st March 2014 31st March 2013

1 Debentures/Bonds – – 2 Banks – – 3 Financial Institutions – – 4 Others – –

Total – –

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Schedule 8Investments - Shareholders(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

LONG-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills

(ReferSchedule16Note17(iii)a&b)* 5,311,487 6,421,097 2 OtherApprovedSecurities 497,311 447,260 3 OtherInvestments – –

(a) Shares – – (aa) Equity – – (bb) Preference – –(b) Mutual Funds – –(c) DerivativeInstruments – –(d) Debentures / Bonds 1,871,698 2,073,403 (e) Other Securities 99,000 99,000 (f) Subsidiaries – –(g) InvestmentProperties-RealEstate – –

4 InvestmentsinInfrastructureandSocialSector 3,414,290 3,721,416 5 OtherthanApprovedInvestments 12,500 296,530

Total (A) 11,206,286 13,058,706

SHORT-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills 85,7092 OtherApprovedSecurities – –

– FixedDeposits** 300,000 – – Others 35,688 101,965

3 OtherInvestments – –(a) Shares – – (aa) Equity – – (bb) Preference – –(b) Mutual Funds 314,305 –(c) DerivativeInstruments – –(d) Debentures/Bonds 49,989 100,000 (e) Other Securities – –(f) Subsidiaries – –(g) InvestmentProperties-RealEstate – –

4 InvestmentsinInfrastructureandSocialSector – 344,631 5 Outstanding trades – – 6 OtherthanApprovedInvestments 1,385,823 15,859

Total (B) 2,085,805 648,164

TOTAL (A) + (B) 13,292,091 13,706,870

Notes: 1 AggregateamountofCompany’sinvestments(otherthanlistedequitysecurities,mutualfundandderivativeinstruments)andthemarket

valuethereof

Particulars As at As at

31st March 2014 31st March 2013

AggregateamountofCompany’sinvestmentsotherthanlistedequitysecurities, mutualfundandderivativeinstruments

11,591,963

13,696,216

MarketvalueofaboveInvestments 11,212,664 13,927,174

2 Investmentsinsubsidiary/holdingcompanies,jointventuresandassociatesatcostis` Nil(PreviousYear` Nil)3 Investmentsmadeoutofcatastrophereservesis` Nil(PreviousYear` Nil)4 DebtSecuritiesareheldtomaturityandreductioninmarketvaluesrepresentmarketconditionsandnotapermanentdiminutioninthevalue

ofinvestments,ifany.5 HistoricalcostofMutualFund&equityincludedaboveismutualfunds` 1,698,719(Previousyear:` 10,128)andequity` 12,500(Previous

year: ` 12,500)6 * IncludesGovernment securities amounting to` 296,392 havebeendepositedwithClearingCorporation of India Ltd. (CCIL) towards

Settlement Guarantee Fund (SGF) deposit for trades in Security & CBLO through CCIL.7 **FixedDepositamountingto` 250,000 and ` 50,000havebeenplacedwithNationalSecuritiesClearingCorporationLtd.(NSCCL)and

IndianClearingCorporationLtd.(ICCL)respectivelytowardsmarginrequirementforEquitytradesettlement8 ReferSchedule16Note2(f)

Schedules

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Birla Sun Life Insurance

Schedule 8AInvestments - Policyholders(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

LONG-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills 12,256,997 8,583,326 2 OtherApprovedSecurities 798,415 522,640 3 OtherInvestments

(a) Shares (aa) Equity 270,335 102,451 (bb) Preference 1,905 (b) Mutual Funds(c) DerivativeInstruments(d) Debentures/Bonds 3,679,063 3,050,619 (e) Other Securities 185,200 435,200 (f) Subsidiaries(g) InvestmentProperties-RealEstate

4 InvestmentinInfrastructureandSocialSector 5,170,449 3,128,592 5 OtherthanApprovedInvestments 5,211 12,098

Total (A) 22,367,575 15,834,926

SHORT-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills 1,791,486 2,672,718 2 OtherApprovedSecurities

– FixedDeposits 950,000 110,000 – Others 1,656,350 1,396,760

3 OtherInvestments(a) Shares – – (aa) Equity – – (bb) Preference – –(b) Mutual fund 429,131 –(c) DerivativeInstruments(d) Debentures/Bonds 50,000 1,061,010 (e) Other Securities – –(f) Subsidiaries – –(g) InvestmentProperties-RealEstate – –

4 InvestmentinInfrastructureandSocialSector 80,005 1,008,378 5 OtherthanApprovedInvestments 682,623 130,876

Total (B) 5,639,595 6,379,742

TOTAL (A) + (B) 28,007,170 22,214,668

Notes: 1 Aggregateamountofcompany’sinvestments(otherthanlistedequitysecurities,mutualfundandderivativeinstruments)andthemarket

valuethereof

Particulars As at As at

31st March 2014 31st March 2013

AggregateamountofCompany’sinvestmentsotherthanlistedequitysecurities, mutualfundandderivativeinstruments

26,589,498

21,976,545

MarketvalueofaboveInvestments 25,934,117 22,258,143

2 Investmentsinsubsidiary/holdingcompanies,jointventuresandassociatesatcostis` Nil (PreviousYear` Nil)3 Investmentsmadeoutofcatastrophereservesis` Nil(PreviousYear` Nil)4 DebtSecuritiesareheldtomaturityandreductioninmarketvaluesrepresentsmarketconditionsandnotapermanentdiminutioninthe

valueofinvestments,ifany.5 Historical cost of Mutual Fund, Preference Shares & equity included above ismutual funds 1,110,898 (Previous year: 112,841),

Preference Nil(PreviousYear` Nil)andequity 266,151(Previousyear:` 128,949)6 ReferSchedule16Note2(f)

Schedules

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Schedule 8BAssets held to cover linked liabilities(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

LONG-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills 28,658,732 26,742,793 2 OtherApprovedSecurities 354,506 942,801 3 OtherInvestments

(a) Shares (aa) Equity 88,174,868 79,891,610 (bb) Preference 76,449 –(b) Mutual Funds – –(c) DerivativeInstruments – –(d) Debentures / Bonds* 18,652,614 18,655,621 (e) Other Securities 1,151,000 3,251,000 (f) Subsidiaries – –(g) InvestmentProperties-RealEstate – –

4 InvestmentsinInfrastructureandSocialSector 30,129,810 26,333,100 5 OtherthanApprovedInvestments 2,662,100 6,193,609

Total (A) 169,860,079 162,010,534

SHORT-TERM INVESTMENTS1 GovernmentsecuritiesandGovernmentguaranteedbondsincludingTreasuryBills 444,641 583,757 2 OtherApprovedSecurities

– FixedDeposits 7,163,100 3,740,500 – Others 7,518,280 7,404,330

3 OtherInvestments(a) Shares (aa) Equity – – (bb) Preference – –(b) Mutual Funds – – (c) DerivativeInstruments – –(d) Debentures/Bonds 3,879,205 5,650,393 (e) Other Securities – –(d) Application Money – – (f) Subsidiaries – –(g) InvestmentProperties-RealEstate – –

4 InvestmentsinInfrastructureandSocialSector 2,344,766 2,830,832 5 OtherthanApprovedInvestments 9,537,866 6,059,901

Total (B) 30,887,858 26,269,713

OTHER ASSETS1 Bank Balances 1,645,187 1,776,043 2 InterestAccruedonInvestments 3,225,643 2,819,970 3 Fund Charges – – 4 OutstandingContracts(Net) 828,427 494,463

Total (C) 5,699,257 5,090,476

TOTAL (A) + (B) + (C) 206,447,194 193,370,723

Notes: As at As at

1 Particulars 31st March 2014 31st March 2013

*InvestmentinAdityaBirlaNuvoLimited(HoldingCompany) – 248,365

Schedules

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Birla Sun Life Insurance

Schedule 9Loans(Amounts in thousands of Indian Rupees)

ParticularsAs at As at

31st March 2014 31st March 2013

1 Security-wise classificationSecured(a) On mortgage of property (aa) In India – – (bb) Outside India – – (b) OnShares,Bonds,Govt.Securities,etc. – – (c) LoansagainstPolicies 284,669 280,690 (d) Others – – Unsecured – –

Total 284,669 280,690

2 Borrower-wise classification(a) CentralandStateGovernments – – (b) Banks and Financial Institutions – – (c) Subsidiaries – – (d) Companies – – (e) LoansagainstPolicies 284,669 280,690 (f) Others – –

Total 284,669 280,690

3 Performance-wise classification(a) Loansclassifiedasstandard: (aa) In India 284,669 280,690 (bb) Outside India – – (b) Non-standardloanslessprovisions (aa) In India – – (bb) Outside India – –

Total 284,669 280,690

4 Maturity-wise classification(a) Short-Term 2,248 32,884 (b) Long-Term 282,421 247,806

Total 284,669 280,690

Note: ReferSchedule16Note2(g)

Schedules

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Annual Report 2013-14

Sche

dule

10

Fixe

d As

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nts

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1

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101

,244

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ationTechnologyEquipment

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9

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,844

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15,

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37,

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220

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5

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2

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6 2

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183

,174

1

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4 2

0,76

7 1

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61

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37,

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ents)

424

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2

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1 3

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328

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3

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8 2

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95,

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1

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24

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2

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1

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,726

1

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159

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1

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,171

3

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330

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orkinProgress

(IncludingCapitalAdvances)

49,

499

11,

544

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tal

2,3

22,5

33

199

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1

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163

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1

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399

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3

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PreviousYear

2,2

94,9

74

217

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1

89,6

33

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22,5

34

1,9

89,7

64

172

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1

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1,9

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342

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Note

s:

1.

ReferS

chedule16Note2(h)

2.

Sale/Adjustmentsasappearingingrossblockincludesclosureofbranches&assetswriteoffthereon

3.

Jointlyheldassetswhichform

partofSchedule10

Part

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Net

Blo

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31,

20

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31,

20

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Furn

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Inform

ationTechnologyEquipment

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Vehicles

OfficeEquipm

ent

897

1

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provem

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72

49

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al

968

1

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CapitalW

orkinProgress

(IncludingCapitalAdvances)

Gra

nd T

otal

9

68

1,6

88

PreviousYear

1,6

88

Schedules

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Birla Sun Life Insurance

Schedule 11Cash and Bank Balances(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

1 Cash(includingchequesonhand` 929,668Previousyear` 847,399) 1,076,194 1,016,176

(Stamps on hand `21,822Previousyear` 30,892)

2 Bank Balances

(a) Deposit Accounts

(aa) Short-term (due within 12 months) 3,922,148 3,917,213

(bb) Others – –

(b) Current Accounts 78,483 509,045

(c) Others – –

3 MoneyatCallandShortNotice

(a) WithBanks – –

(b) WithotherInstitutions – –

4 Others

Total 5,076,825 5,442,434

Balanceswithnon-scheduledbanksincludedin2above

Cash and Bank Balances1 In India 5,076,825 5,442,434

2 Outside India – –

Total 5,076,825 5,442,434

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Schedule 12Advances and Other Assets(Amounts in thousands of Indian Rupees)

ParticularsAs at As at

31st March 2014 31st March 2013

ADVANCES1 Reservedepositswithcedingcompanies – –2 Applicationmoneyforinvestments – –3 Prepayments 183,821 196,356 4 AdvancestoDirectors/Officers – – 5 Advancetaxpaidandtaxesdeductedatsource 4,816 2,416 6 Otheradvances

(a) AdvancetoSuppliers/Contractors 67,913 89,028 (b) Others 35,303 26,372

Total (A) 291,853 314,172

OTHER ASSETS1 IncomeaccruedonInvestments 1,223,721 1,139,607 2 OutstandingPremiums 1,038,095 747,211 3 Agent’s Balances (gross) 37,309 27,785

Less:Provisionfordoubtfuldebts – 37,309 – 27,785 4 Foreign Agencies Balances – –5 Due from other Entities carrying on insurance business 28,372 359 6 Due from holding company – – 7 DepositwithReserveBankofIndia – –8 ServiceTaxunutilisedcredits 341,752 355,458

Less:ProvisionforServiceTaxunutilisedcredits – 341,752 (107,160) 248,298 9 Others –

Deposits & Others 371,607 440,948 Outstanding Trades 13,263 136 InsurancePolicies(LeaveEncashment) 195,016 150,012 ApplicationmoneyforInvestment – –

Total (B) 3,249,135 2,754,356

Total (A+B) 3,540,988 3,068,528

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Birla Sun Life Insurance

Schedule 13Current Liabilities(Amounts in thousands of Indian Rupees)

ParticularsAs at As at

31st March 2014 31st March 2013

1 Agent’s Balance 554,780 569,717

2 Balances due to other insurance companies 27,012 175,008

3 Deposits held on re-insurance ceded – –

4 Premiumsreceivedinadvance 1,576,145 1,876,100

5 Unallocated premiums – 2

6 Sundry Creditors* 2,330,841 2,621,248

7 Due to holding company – –

8 Claims outstanding 91,612 46,368

9 Annuities Due – –

10 DuetoOfficers/Directors – –

11 Others

(a) PolicyApplicationandotherDeposits 743,249 809,677

(b) DuetoPolicyholders 30,245 26,698

(c) TaxesPayable 221,424 244,768

(d) TemporaryOverdraft(asperbooksonly) – –

(e) Unclaimed amounts of policyholders 2,211,129 2,204,519

(f) Interimdividendpayable – –

Total 7,786,437 8,574,105

* There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31stMarch2014.ThisinformationasrequiredtobedisclosedundertheMicro,Small&MediumEnterprisesDevelopmentAct,2006hasbeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationavailablewiththeCompany.

Schedules

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Schedule 14Provisions(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

1 Fortaxation

(a) Provisionforwealthtax 85 628

2 Forproposeddividends 700,000 1,181,700

3 Fordividenddistributiontax 118,965 200,830

4 Others

(a) Provisionforlong-termbonusplan[ReferSchedule16,Note25(a)&(b)] 157,062 83,434

(b) Provisionforrenewalbonus[ReferSchedule16,Note25(a)&(b)] – –

(c) Provisionforgratuity[ReferSchedule16,Note26(a)(i)] – –

(d) Provisionforleaveencashment[ReferSchedule16,Note26(a)(ii)] 144,995 146,240

Total 1,121,107 1,612,832

Schedule 15Miscellaneous Expenditure(Totheextentnotwrittenofforadjusted)(Amounts in thousands of Indian Rupees)

Particulars As at As at

31st March 2014 31st March 2013

1 Discount Allowed in issue of shares/debentures – –

2 Others – –

Total – –

Schedules

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Birla Sun Life Insurance

BIRLA SUN LIFE INSURANCE COMPANY LIMITEDRegistration Number: 109 dated 31st January 2001

Schedules forming part of the Financial Statements for the year ended 31st March 2014(Amounts in thousands of Indian Rupees)

Schedule 16

Notes to the Financial Statements1. Background BirlaSunLifeInsuranceCompanyLimited(‘theCompany’),headquarteredatMumbai,hadcommencedoperationson19thMarch2001,

afterreceivingthelicensetotransactlifeinsurancebusinessinIndiafromtheInsuranceRegulatoryandDevelopmentAuthority(‘IRDA’)on31stJanuary2001.Thelicensehasbeenrenewedannuallyandisinforceasat31stMarch2014.

TheCompanyisajointventurebetweenAdityaBirlaNuvoLimited,aCompanyoftheAdityaBirlaGroupofIndia(74percent)andSunLifeFinancial(India)InsuranceInvestmentsInc.,subsidiaryofSunLifeAssuranceCompanyofCanada(26percent).Thisbusinessspansacrossindividualandgroupproductsandcoversparticipating,non-participatingandunit linked linesofbusinesses.Riderscoveringadditionalbenefitsareofferedundertheseproducts.Theseproductsaredistributedthroughindividualagents,corporateagents,banks,brokersandother intermediaries across the country.

2. Significant Accounting Policies

a) Basis of preparation Theaccompanyingfinancialstatementshavebeenpreparedandpresentedunderthehistoricalcostconvention,ontheaccrualbasis

of accounting, in accordance with the accounting principles generally accepted in India, in compliance with the Accounting Standards notifiedundertheCompaniesAct,1956(‘theAct’)readwithGeneralCirculardated4thApril2014issuedbytheMinistryofCorporateAffairs to the extent applicable, and in accordancewith theprovisions of the InsuranceAct, 1938, the InsuranceRegulatory andDevelopmentAuthority (PreparationofFinancialStatementsandAuditors’Reportof InsuranceCompanies)Regulations,2002(‘theregulations’),theInsuranceRegulatoryandDevelopmentAuthorityAct,1999,variouscircularsissuedbyIRDAandpracticesprevailingintheinsuranceindustryinIndia.TheaccountingpolicieshavebeenconsistentlyappliedbytheCompany.

Themanagementevaluatesallrecentlyissuedorrevisedaccountingpronouncementsonanongoingbasis.

b) Use of estimates Thepreparationof thefinancialstatements inconformitywithgenerallyacceptedaccountingprinciples (‘GAAP’) requires that the

Company’smanagementmakeestimatesandassumptionsthataffectthereportedamountsof incomeandexpensesfortheyear,reportedbalancesofassetsandliabilitiesanddisclosuresrelatingtocontingentliabilitiesasofthedateofthefinancialstatements.Theestimatesandassumptionsusedinthefinancialstatementsarebaseduponmanagement’sevaluationoftherelevantfactsandcircumstancesasondateofthefinancialstatement.Anyrevisiontoaccountingestimatesisrecognisedprospectively.Examplesofsuchestimatesincludevaluationofpolicyliabilities,provisionforlinkedliabilities,fundsforfutureappropriations,provisionfordoubtfuldebts,valuationofunlistedsecurities,ifany,valuationofdebtsecurities,futureobligationsunderemployeeretirementbenefitsplansandtheusefullivesoffixedassets,etc.Actualresultscoulddifferfromtheseestimates.

c) Revenue recognition i. Premium Income Premiumisrecognisedasincomewhenduefrompolicyholders.Forunitlinkedbusiness,premiumincomeisrecognisedwhen

theassociatedunitsarecreated.Premiumonlapsedpoliciesisrecognisedasincomewhensuchpoliciesarereinstated.Incaseof linked business, top up premium paid by policyholders are considered as single premium and are unitised as prescribed by the regulations. This premium is recognised when the associated units are created.

ii. Income from Investments Interestincomeoninvestmentsisrecognisedonaccrualbasis.Amortisationofdiscount/premiumrelatingtodebtsecuritiesis

recognisedovertheremainingmaturityperiodonastraight-linebasis.

Dividendincomeisrecognisedwhentherighttoreceivedividendisestablished.

The realised gain/loss on debt securities held for other than linked business is the difference between the net sale consideration and amortised cost.

Therealisedgain/lossondebtsecuritiesheldforlinkedbusinessandonsaleofequityshares/mutualfundunitsisthedifferencebetweenthenetsaleconsiderationandweightedaveragecost.

iii. Reinsurance premium Reinsurance premium ceded is accounted for at the time of recognition of the premium income in accordance with the terms and

conditionsoftherelevanttreatieswiththereinsurers.Impactonaccountofsubsequentrevisionstoorcancellationsofpremiumare recognised in the year in which they occur.

iv. Income from linked policies Income from linked policies, which include asset management fees, policy administration charges, mortality charges and other

charges,ifany,arerecoveredfromthelinkedfundsinaccordancewiththetermsandconditionsofthepoliciesandrecognisedwhen due.

Interest income on loans is recognised on an accrual basis and disclosed under other income.

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d) Benefits paid (including claims) Death and other claims are accounted for, when notified. Survival and maturity benefits are accounted when due. Surrenders/

Withdrawalsunderlinkedpoliciesareaccountedintherespectiveschemeswhentheassociatedunitsarecancelled.Reinsurancerecoverable thereon, if any, is accounted for in the sameperiod as the related claim.Repudiated claimsdisputedbefore judicialauthoritiesareprovidedforbasedonmanagementprudenceconsideringthefactsandevidencesavailableinrespectofsuchclaims.

e) Acquisition costs Acquisitioncostsarecosts thatvarywithandareprimarily related toacquisitionof insurancecontracts.Acquisitioncostsmainly

consistsofcommission,medicalcosts,policyprintingexpenses,stampdutyandotherrelatedexpenses.Thesecostsareexpensedintheyearinwhichtheyareincurred.Clawbackofthefirstyearcommissionpaid,ifany,infutureisaccountedintheyearinwhichitisrecovered.

f) Investments InvestmentsaremadeinaccordancewiththeInsuranceAct,1938,theInsuranceRegulatoryandDevelopmentAuthority(Investment)

Regulations,2000, the InsuranceRegulatoryandDevelopmentAuthority (Investment) (Amendment)Regulations,2001andvariousothercirculars/notificationsissuedbytheIRDAinthiscontextfromtimetotime.

Investmentsarerecordedatcostonthedateofpurchase,whichincludesbrokerageandstampduty,taxes,etc.,ifany,butexcludespre-acquisitioninteresti.e.(fromthepreviouscoupondatetothetransactionsettlementdate),ifany,onpurchase.

i. Classification Investmentsmaturingwithin twelvemonths from the balance sheet date and investmentsmadewith specific intention to

disposeoffwithintwelvemonthsareclassifiedasshort-terminvestments.

Investmentsotherthanshort-terminvestmentsareclassifiedaslong-terminvestments.

ii. Debt securities • Policyholders’non-linkedfundsandshareholders’investments: Alldebtsecurities,includingCentralandStategovernmentsecurities,areconsideredas‘heldtomaturity’andstatedat

amortised cost. The discount or premium which is the difference between the purchase price and the redemption amount offixedincomesecuritiesisamortisedandrecognisedintherevenueaccountortheprofitandlossaccount,asthecasemaybe,onastraightlinebasisovertheremainingperiodtomaturityofthesesecurities.

• Policyholders’linkedfunds: Alldebtsecurities,includingCentralandStategovernmentsecurities,underpolicyholders’linkedfundsarevaluedusing

CRISILBondValuer/CRISILGilt/SDLPrices,asapplicable.Thediscountorpremiumonmoneymarketinstrumentswhichisthedifferencebetweenthepurchasepriceandtheredemptionamountisamortisedandrecognisedintherevenueaccountonastraightlinebasisovertheremainingperiodtomaturityofthesesecurities.

iii. Equity shares/Preference shares Listedequity/preferencesharesarevaluedandstatedatfairvalue,usingthelastquotedclosingpricesontheNationalStock

Exchange(NSE),atthebalancesheetdate.IftheequitysharesarenottradedontheNSE,thenclosingpricesoftheBombayStockExchange(BSE)isconsidered.

Equity/preferencesharesacquiredthroughprimarymarketsandawaitinglistingarevaluedasperthevaluationpolicyoftheCompanydulyapprovedbyInvestmentCommittee.

Unlisted equity/preference shares are valued as per the valuation policy of the company duly approved by Investment Committee.Aprovisionismadefordiminution,ifany,inthevalueofthesesharestotheextentthatsuchdiminutionisotherthan temporary.

iv. Mutual Funds MutualFundsarevaluedonpreviousday’sNAVpublishedbytherespectivemutualfunds.

v. Gain/loss on equity, preference shares and mutual funds Unrealisedgains/lossesarerecognisedintherespectivefund’srevenueaccountasfairvaluechangeincaseoflinkedfunds.

Unrealisedgain/lossduetochangesinfairvalueoflistedequity/preferencesharesandmutualfundsaretakentotheFairValueChange account for other than linked business and are carried to the Balance Sheet.

Diminutioninthevalueofinvestmentsasatthebalancesheetdate,otherthantemporary,isrecognisedasanexpenseintheRevenue/Profit&Lossaccount.

vi. Investment transfer Transfersof InvestmentsfromShareholders’fundstothePolicyholders’fundsareaffectedatthelowerofamortisedcostor

marketvalue in respectofalldebtsecurities includingmoneymarket instrumentsandat themarketvalue incaseofothersecurities.

Inter-fundtransferofdebtsecuritiesrelatingtoLinkedPolicyholders’Fundsiseffectedat lastavailablemarketvalueaspermethodologyspecifiedintheInterFundtransferpolicyapprovedbyInvestmentcommittee.Interfundtransferofequityaredoneduringmarkethoursattheprevailingmarketprice.

viii. Impairment on Investment Thecarryingamountsofinvestmentsarereviewedateachbalancesheetdate,ifthereisanyindicatorofimpairmentbased

oninternal/externalfactors.AnimpairmentlossisrecognisedasanexpenseinRevenue/ProfitorLossaccount,totheextentof

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differencebetweenthere-measuredfairvalueandtheacquisitioncostasreducedbyanypreviousimpairmentlossrecognisedasexpenseinRevenue/ProfitandLossAccount.Anyreversalofimpairmentloss,earlierrecognisedinprofitandlossaccountshallberecognisedinRevenue/ProfitandLossaccount.

g) Loans against policies Loansagainstpoliciesarevaluedat theaggregateofbookvalues(netofrepayments)pluscapitalised interestandaresubject to

impairment, if any.

h) Fixed assets, intangibles and depreciation i. Fixed assets and depreciation Fixedassetsarestatedatcostlessaccumulateddepreciation.Costincludesthepurchasepriceandanycostdirectlyattributable

tobringingtheassettoitsworkingconditionforitsintendeduse.Subsequentexpenditureincurredonfixedassetsisexpensedoutintheyearofexpenseexceptwheresuchexpenditureincreasesthefutureeconomicbenefitsfromtheexistingassets.

Advancespaidtowardstheacquisitionoffixedassetsoutstandingateachbalancesheetdateandthecostoffixedassetsnotready for its intended use before such date are disclosed under capital work-in-progress.

Assets costing upto `5arefullydepreciatedintheyearofacquisition.TherateofdepreciationishigherofthemanagementestimatebasedonusefullifeortheratesprescribedinScheduleXIVtotheCompaniesAct,1956.Depreciationonfixedassetsisprovidedusingthestraight-linemethodbasedontheeconomicusefullifeofassetsasestimatedbythemanagementareasbelow:

Sr. No. Asset Type Estimated useful life (In years)

1 LeaseholdImprovementsandFurnitureandfittings at leased premises

5yearsorthemaximumrenewableperiodoftherespectiveleases,whicheverislower

2 Furniture&fittings(otherthan(1)above) 53 InformationTechnologyEquipment 34 Vehicles 55 OfficeEquipment 56 MobilePhones(includedinofficeequipmentunderSchedule10) 2

Anyadditionstotheoriginalfixedassetsaredepreciatedovertheremainingusefullifeoftheoriginalasset.

ii. Intangibles Intangible assets comprise of software licenses which are stated at cost less amortisation. Software expenses exceeding

` 1,000 incurred on customisation of software (other than formaintenance of existing software) are capitalised. SoftwarelicensesareamortisedusingStraightLineMethodoveraperiodof3yearsfromthedateofbeingreadyforuse.

iii. Impairment of Assets Ateachbalancesheetdate,managementassesseswhetherthereisanyindication,basedoninternal/externalfactors,thatan

assetmaybeimpaired.Impairmentoccurswherethecarryingvalueexceedsthepresentvalueoffuturecashflowsexpectedtoarisefromthecontinuinguseoftheassetanditseventualdisposal.Theimpairmentlosstobeexpensedisdeterminedastheexcessofthecarryingamountoverthehigheroftheasset’snetsalespriceorpresentvalueasdeterminedabove.Ifatthebalancesheetdatethereisanindicationthatapreviouslyassessedimpairmentlossnolongerexists,therecoverableamountisreassessedandtheassetisreflectedattherecoverableamount,subjecttomaximumofdepreciablehistoricalcost.

i) Operating leases TheCompanyclassifiesleases,wherethelessoreffectivelyretainssubstantiallyalltherisksandbenefitsofownershipoverthelease

term,asOperatingLeases.Operatingleaserentalsarerecognisedasanexpenseonastraightlinebasisoverthenoncancellable lease period.

j) Employee benefits i. Short-Term Employee Benefits Allemployeebenefitspayablewithintwelvemonthsofrenderingtheserviceareclassifiedasshort-termemployeebenefits.

Benefitssuchassalaries&bonusesarerecognisedintheperiodinwhichtheemployeerenderstherelatedservice.

ii. Long-Term Employment Benefits TheCompanyhasbothdefinedcontributionanddefinedbenefitplans.TheseplansarefinancedbytheCompany.

• DefinedContributionPlans: The Company has established defined contribution schemes for superannuation to provide retirement benefits to its

employees.Contributionstothesuperannuationschemesaremadeonamonthlybasisandchargedtorevenueaccountwhen due.

• DefinedBenefitPlans: Gratuityliabilityisdefinedbenefitobligationandisfunded.TheCompanyaccountsforliabilityforfuturegratuitybenefits

basedonindependentactuarialvaluationunderrevisedAccountingStandard15(AS15)on‘EmployeeBenefits’.

ProvidentFundcontributionsaremadetoaTrust,administeredbytheCompany.TheinterestratepayabletothemembersoftheTrustshallnotbelowerthanthestatutoryrateofinterestdeclaredbytheCentralGovernmentundertheEmployees’

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ProvidentFundsandMiscellaneousProvisionsAct,1952,andshortfall,ifany,shallbemadegoodbytheCompany.TheCompany’s liability is actuarially determined (using the ProjectedUnit CreditMethod) at the end of the year and anyshortfallintheFundsizemaintainedbytheTrustsetupbytheCompanyisadditionallyprovidedfor.Actuariallosses/gainsarerecognisedintheStatementofProfitandLossintheyearinwhichtheyarise.

iii. Other Employee Benefits Compensatedabsencesareentitledtobecarriedforwardforfutureencashmentoravailment,attheoptionoftheemployee

duringthetenureoftheemployment,subjecttotherulesframedbytheCompanyinthisregard.Accumulatedcompensatedabsencesentitlementsoutstandingatthecloseoftheyearareaccountedonthebasisofanindependentactuarialvaluation.Accumulated entitlements at the time of separation are entitled to be encashed.

k) Renewal bonus Renewalbonusispayabletotheindividualinsuranceagentsandasegmentofthesalesforce.Thisconstitutesapartofthefirstyear

commission/incentivesagainstreceiptofthefirstyearpremiumbutdueandpayableattheendoftheexpiryoftwoyearsofthepolicyandisaccruedforintheyearofsaleofthepolicy,subjecttotheintermediaries’andpolicy’scontinuedpersistency.

l) Foreign Currency Transactions Transactionsinforeigncurrencyarerecordedattherateofexchangeprevailingatthedateofthetransaction.Monetaryassetsand

liabilitiesinforeigncurrencyaretranslatedattheratesexistingasatthebalancesheetdate.Theresultingexchangegainorlossforrevenuetransactionsisreflected,intherevenueaccountortheprofitandlossaccount,asthecasemaybe.

m) Segment reporting AsperAccountingStandard17(AS17)on‘SegmentReporting’readwiththe“PreparationofFinancialStatementsandAuditor’sReport

of InsuranceCompanies,Regulations2002”, theCompany is required to reportsegment resultsseparately for linked,non-linked,healthandpensionbusinesses.ThebusinessisbroadlyclassifiedasParticipatingnon-linked,NonParticipatingUnitLinkedandNonLinkedbusinesses,whicharefurthersegmentedintoIndividualLife,GroupLife,IndividualPension,GroupPensionandIndividualHealthbusinesses.Accordingly,theCompanyhaspreparedtherevenueaccountandbalancesheetfortheseprimarybusinesssegmentsseparately. Since the business operation of the Company is in India only, the same is considered as one geographical segment.

Thefollowingbasishasbeenusedforallocationofrevenues,expenses,assetsandliabilitiestothebusinesssegments:

• Revenues,expenses,assetsandliabilitiesdirectlyattributableandidentifiabletobusinesssegments,areallocatedonactualbasis; and

• Otherexpenses,assetsandliabilitieswhicharenotdirectlyidentifiablethoughattributabletoabusinesssegment,areallocatedon the following basis, as considered appropriate by the management:

➢ Gross premium;

➢ First year commission;

➢ Sum assured;

➢ Policyliability;

➢ Asset under management;

➢ NewBusinessPolicyCount;

➢ Enforce policy count

Theaccountingpolicies,usedinsegmentreporting,arethesameasthoseusedinthepreparationofthefinancialstatements.

n) Taxation i. Direct Taxes TheIncome-TaxAct,1961prescribesthatprofitsandgainsoflifeinsurancecompanieswillbethesurplusordeficitdisclosed

bytheactuarialvaluationmadeinaccordancewiththeInsuranceAct,1938.

Deferredincometaxisrecognisedforfuturetaxconsequencesattributabletotimingdifferencesbetweenincomeasdeterminedby thefinancialstatementsand the recognition for income taxpurposes.Theeffectondeferred taxassetsand liabilitiesofachangeintaxratesisrecognisedusingthetaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedbythebalance sheet date.

Deferredtaxassetsarerecognisedonlytotheextentthere isreasonablecertaintythattheassetscanberealised infuture.However,wherethereisunabsorbeddepreciationorcarriedforwardlossundertaxationlaw,deferredtaxassetsarerecognisedonlyifthereisvirtualcertaintybackedbyconvincingevidencethatsuchdeferredassetscanberealised.Deferredtaxassetsarereviewedasateachbalancesheetdateandwrittendownorwrittenuptoreflecttheamountthatisreasonablyorvirtuallycertain, as the case may be, to be realised.

Provisionforwealthtaxismadeattheappropriaterates,aspertheapplicableprovisionsofWealthTaxAct,1957.

ii. Indirect Taxes TheCompanyclaimscreditofservice tax for inputservices,which issetoffagainst taxonoutputservices.Asamatterof

prudence,unutilisedcreditsaredeferredforrecognitionuntilsuchtimethatthereisreasonablecertaintyofutilisation.Aprovisionis created against unutilised credit based on estimated realisation of such unutilised credit.

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o) Provisions and Contingencies AprovisionisrecognisedwhentheCompanyhasapresentlegalobligationasaresultofpastevent/sanditisprobablethatanoutflow

ofresourceswillberequiredtosettletheobligation,inrespectofwhichreliableestimatecanbemade.Thesearereviewedateachbalancesheetdateandadjustedtoreflectcurrentbestestimates.Adisclosureforcontingentliabilityismadewhenthereisapossibleobligationorpresentobligationsthatmay,butprobablywillnot,requireanoutflowofresourcesoritcannotbereliablyestimated.Whenthereisapossibleobligationorapresentobligationinrespectofwhichthelikelihoodofoutflowofresourcesisremote,noprovisionordisclosureismade.Acontingentassetisneitherrecognisednordisclosed.

p) Funds for Future Appropriation Thebalanceinthefundsforfutureappropriationsaccountrepresentsfunds,theallocationofwhich,eithertoparticipatingPolicyholders

ortoShareholders,hasnotbeendeterminedattheBalanceSheetdate.Transferstoandfromthefundreflecttheexcessordeficitof incomeoverexpensesandappropriationsineachaccountingperiodarisingintheCompany’sPolicyholders’fund. InrespectofParticipatingpoliciesanyallocationtothepolicyholderwouldalsogiverisetoashareholdertransferintherequiredproportion.

AmountsestimatedbytheAppointedActuaryasFundsforFutureAppropriation(FFA)inrespectoflapsedUnitLinkedPoliciesareset-asideinthebalancesheetandarenotavailablefordistributiontoshareholdersuntilexpiryoftherevivalperiod.

q) Earnings Per Share Basicearningspershareiscalculatedbydividingthenetprofitorlossfortheyearattributabletoequityshareholdersbytheweighted

averagenumberofequitysharesoutstandingduringtheyear.Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheyearattributabletoequityshareholdersandtheweightedaveragenumberofsharesoutstandingduringtheyearareadjustedfortheeffectsofalldilutivepotentialequityshares.

3. Contingent liabilities

Sr. No. Particulars Current Year Previous Year

1 Partlypaid-upinvestments Nil Nil

2 Claims, other than against policies, not acknowledged as debts by the Company 24,321 25,961

3 Underwriting commitments outstanding Nil Nil

4 GuaranteesgivenbyoronbehalfoftheCompany Nil Nil

5 Statutorydemands/liabilitiesindispute,notprovidedfor Refer Note Below ReferNoteBelow

6 Reinsuranceobligationstotheextentnotprovidedforintheaccounts. Nil Nil

7 Others * 91,101 223,819

*RepresentspotentialliabilitytotheCompany(netofreinsurance)inrespectofcasesfiledagainsttheCompany’sdecisionofrepudiationofdeath claims and customer complaints.

Note: ThecompanyhasreceivedShowCause-Cum-DemandnoticesforearlierperiodrelatingtoServiceTaxdemandsof` 398,203 as at 31st March 2014 (as at 31st March 2013 ` 309,471) plus applicable interest and penalty. Basis legal opinion obtained, management is of the opinion that these show-cause cum demand notices are not legally tenable and decided to contest at appellate authority.

4. Percentage of Business Sector-wise

Particulars

Current Year Previous Year

Number of Individual life

policies

Number of Group lives

covered

First year and single

premium

Number of Individual life

policies

Number of Group lives

covered

First year and single

premium

Total Business 415,770 912,855 16,974,898 558,602 798,229 18,365,130

Rural Sector 91,760 – 4,795 123,147 – 5,388

Asa%ofTotalBusiness 22.07% – 0.03% 22.05% – 0.03%

Social Sector – – – – 41,899 1,607

Asa%ofTotalBusiness – – – – 5.25% –

Note:Basistheprovisionsintheregulation15(2)oftheIRDA(MicroInsurance)Regulations,2005;68,735customersfromtheruralpolicydatabasemeetwith thesocial sectordefinitionandcan thereforebe reckonedunderboth rural sectorobligationand thesocial sectorobligationforFY13-14asspecifiedundertheIRDA(ObligationsofInsurerstoRuralorSocialSectors)Regulations,2002.BasistheabovethetotalsocialsectorlivescoveredfortheyearFY13-14is68,735Lives.

5. Benefitspaid includescharges inrespectofdiscountallowedto thepolicyholders’amounting to`91,652 (Previousyear` 94,641) for advancepaymentoffuturepremiumssubjecttoprepaymentconditions.

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6. Contribution from shareholders’/policyholders’ account The net surplus of `2,621,506(Previousyear:`4,271,456)basedontheactuarialvaluationmadeinaccordancewiththeInsuranceAct,

1938andascertifiedbytheappointedactuaryisbeingtransferredfrompolicyholders’accounttoshareholders’account.Thedetailsaretabulated below:

Surplus / (Deficit) of Business Segments Current Year Previous Year

Non Par Linked Individual 4,264,680 5,136,003 Group 68,899 54,945 IndividualPensions 524,632 638,054 GroupPensions (15,929) 40,259 Health 71,864 (37,274)

Non Par Non Linked Individual (703,579) (1,943,010) Group 25,842 200,925 IndividualPensions 246,382 67,264 GroupPensions (87,252) 105,739 Health (10,531) 22,826

Par Non Linked Individual (1,763,502) (14,275)

Net Surplus for Policyholders’ 2,621,506 4,271,456

7. Operating lease commitments In accordance with Accounting Standard 19 (AS 19) on ‘Leases’, the details of leasing arrangements entered into by the Company are

as under:

TheCompany has entered into agreements in the nature of cancellable and non-cancellable lease/leave and license agreementswithdifferentlessors/licensorsforthepurposeofestablishmentofofficepremises,leaseholdimprovements,furnitureandfixtures,informationtechnologyandofficeequipments.Thesearegenerallyinthenatureofoperatingleases/leaveandlicenses.

Theoperatingleaserentalschargedduringtheyearandmaximumobligationsonoperatingleasepayableatthebalancesheetdate,asperthe rentals stated in the agreements are as follows:

Particulars Current Year Previous Year

TotalleaserentalschargedtoRevenueAccount 607,863 712,438

Lease obligations for non – cancellable leases

– Withinoneyearofthebalancesheetdate 346,311 562,704

– Dueinaperiodbetweenoneyearandfiveyears 347,106 590,438

– Dueafterfiveyears 19,481 17,491

8. Foreign exchange gain/(loss) TheCompanyhasrecordedforeignexchangelossof`769intheRevenueAccountandthesameis includedunder“InterestandBank

Charges”inSchedule3(PreviousYearloss:` 96).

9. Managerial remuneration TheappointmentofmanagerialpersonnelisinaccordancewiththerequirementsofSection34AoftheInsuranceAct,1938andisapproved

by the IRDA.

(i) Mr.PankajRazdanhasbeenappointedasManagingDirectorandCEOinplaceofMr.JayantDuaw.e.f.1stJanuary2014.Belowisthetabularpresentationofmanagerialremunerationforcurrentyearandpreviousyear;

Particulars Current Year Previous Year

Salary 35,106 14,256

Other allowances 7,815 5,464

Contribution to :

– Providentfund 1,028 852

– Superannuation fund 866 1,065

Perquisites 372 450

Total 45,187 22,087

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(ii) Oftheabove,amountof`30,186(previousyear` 7,088) has been borne by shareholder’. (iii) TheManagerial remuneration for the year does not included the actuarially valued employee benefits that are accounted as per

accountingstandard15onemployeebenefitsandanyperformance/longtermbonusestimatedandpayableforcurrentyearbasedonoverallcompanyperformance.

(iv) SittingFeespaidtoindependentdirectorsinthecurrentyearis`520(PreviousYear:` 320).

10. Asrequiredbycircularno.067/IRDA/F&A/CIR/MAR-08dated28thMarch2008.BreakupofOperatingexpensesincurredunderthefollowingheads;

(Previousyearfiguresarepresentedinbrackets)

Particulars Business

Development Outsourcing

Agentsrecruitment,seminarandotherexpenses 11,185

(26,627)

DistributionExpenses 526,873

(463,031)

RecruitmentandseminarExpenses 53,698

(113,263)

Outsourcingexpenses 252,490

(314,465)

Total 591,756 252,490

(602,921) (314,465)

11. Earnings per Share

Particulars Current Year Previous Year

Profit/(loss)asperprofitandlossaccount 3,707,536 5,415,031

Weightedaveragenumberofequityshares 1,912,434,082 1,969,500,000

Earnings per share (Basic and Diluted) in ` 1.94 2.75

FaceValuepershare ` 10 ` 10

# Amount in absolute Indian Rupees

12. Actuarial assumptions Theactuarial liabilitiesarecalculated inaccordancewithacceptedactuarialpractice, requirementsof InsuranceAct,1938,Regulations

notifiedbyInsuranceRegulatoryandDevelopmentAuthorityandPracticeStandardprescribedbytheInstituteofActuariesofIndia.

Unit Reserves Unitreservesarecomputedbymultiplyingthenumberofunitswiththeunitpriceasonthevaluationdate.

Non Unit Reserves Prospective gross premium cash flow method is used to compute the non unit liabilities in respect of the policies in force as at

31st March 2014.

Thecashflowsareprojectedbasedonassumptions that reflect theexpected futureexperienceandhaveanappropriateallowance formarginsforadversedeviations.Themajorassumptionsrelatetomortality,interest,expenses,policypersistencyandpremiumpersistency.

Additionally,fortraditionalparpoliciescurrentyearbonusrate,futurebonusratesandterminalbonuses(whereverapplicable)consistentwith the valuation interest rate, transfer to shareholders and tax on the surplus are also taken into account while calculating the policy liability.

MortalityratesarederivedbasedontheIndianAssuredLivesMortality(2006-2008)tableaftermakingsuitableadjustmentsdependingonthe type of the product.

Longitivity(forAnnuityProducts)ratesarederivedbasedontheLICAnnuitanttable(96-98)tableaftermakingsuitableadjustmentsandwithappropriatemortalityimprovements.Interestratesusedtodiscountthefuturecashflowsvaryfrom5.50%to7.75%.Aprudentassumptionismadeforinvestmentgrowthontheunitfunds.Anappropriateallowanceismadeforfuturepolicymaintenanceexpensesandinvestmentexpenses.Policypersistencyratesarederivedbasedonexpectedfuturepolicyholderbehaviour.Forunitlinkedbusiness,thediscontinuanceofpremiumsbythepolicyholderswhilekeepingthebenefitsinforceisallowedforbyappropriatepremiumpersistencyassumptionsvaryingby product.

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Additionalprovisionsaremadetowards: I. Investmentguaranteesforunitlinkedbusiness II. Substandardlives III. Unearnedpremium/mortalitycharges(inaccordancewithIRDACircular50/IRDA/ACTL/CIR/GEN/050/03/2010) IV. Reservesforfreelookoptiongiventothepolicyholders V. Lapsepolicieseligibleforrevivals(inaccordancewithIRDACircular41/IRDA/ACTL/Mar-2006) VI. NewBusinessClosureReserve VII. CashSurrenderValueDeficiencyReserve VIII. PremiumWaiverClaimProvision IX. IncurredButNotReportedReserve

Foryearlyrenewablegrouptermbusiness,unearnedpremiummethodisusedtocomputethereserves.Inadditiontotheunearnedpremiumreserve,provisionisalsomadeforincurredbutnotreportedclaimsforgroupbusinessaswell.

13. Disclosure of discontinued linked policies Asrequiredbycircularno. IRDA/Reg/2/52/2010dated1stJuly2010relatingtotreatmentofdiscontinuedlinked insurancepolicies, the

disclosures are as under:-

ParticularsCurrent Year Previous Year

Sub-Total Total Sub-Total TotalOpening balance of funds for discontinued policies 2,050,412 437,939 Add: Fund of policies discontinued during the year 2,570,890 2,021,087 Less: Fund refunded to policyholders during the year 132,540 2,438,350 510,182 1,510,905 Add/(Less) : Realised & Unrealised gain/loss 265,680 101,568 Closing balance of funds for discontinued policies 4,754,442 2,050,412

Other disclosures:a) Numberofpoliciesdiscontinuedduringtheyear. 44,891 59,533b) Percentageofdiscontinuedtototalpolicies

(product wise) during the year, BSLIPlatinumAdvantage 20.95% 20.9% BSLIClassicEndowment2010Plan 15.08% 19.1% BSLIDreamEndowment2010Plan 19.38% 24.1% BSLIClassicLife2010Plan 13.33% 29.7% BSLIDreamLife2010Plan 20.46% 36.7% BSLIDreamChild2010Plan 8.87% 31.1% BSLIClassicChild2010Plan 6.85% 21.2% BSLIWealthSecurePlan 5.51% 7.8% BSLIWealthAssure 2.05% – BSLIEmpowerPensionPlan 17.90% – BSLIForesightPlan – 11.2%c) No.ofpoliciesrevivedduringtheyear 2,883 10,789 d) Percentageofpoliciesrevived(todiscontinuedpolicies)duringtheyear 6% 18%e) Charges imposed on account of discontinued policies 63,055 75,259

14. Percentage of risk-retained and risk-reinsured

Particulars Current Year Previous Year

Sum Assured % Sum Assured %

Individual BusinessRisk-retained 543,286,492 39.68% 566,797,874 40.94%Risk-reinsured 825,885,835 60.32% 817,744,605 59.06%

Total Individual Risk 1,369,172,327 100.00% 1,384,542,479 100.00%

Group BusinessRisk-retained 382,929,176 24.82% 253,974,443 22.32%Risk-reinsured 1,159,842,070 75.18% 883,902,647 77.68%

Total Group Risk 1,542,771,246 100.00% 1,137,877,090 100.00%

15. Encumbrances Ason31stMarch2014,therewerenoencumbrances(Previousyear:`Nil)ontheassetsoftheCompany.

16. Commitments made and outstanding on Loans, Investments and Fixed Assets ThecommitmentsmadeandoutstandingforfixedassetsbytheCompanyasat31stMarch2014are`15,900(PreviousYear:` 22,233) net

ofadvances.

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17. Investments i. Value of contract outstanding Valueofcontractsinrelationtoinvestmentswherepurchaseshavebeenmadeanddeliveriesarependingis`1,360,785/-(Previous

year: `291,518)asatthebalancesheetdate.Therearenoinvestmentcontractswheresaleshavebeenmadeandpaymentsareoverdueasatthebalancesheetdate.

ii. Historical costs Asat31stMarch,2014, theaggregatehistoricalcostandmarketvalueofLinked investments,whicharevaluedat fairvalue, is

` 185,819,318/- and `200,747,937/-respectively(PreviousYear:` 183,728,203/- and `188,280,249/-respectively).

iii. Statutory deposits a. Ason31stMarch2014,theCompanyhassecuritieswithfacevalueof`115,000(PreviousYear:` 115,000) in CSGL Account

with Deutsche Bank, as required under Section 7 of the InsuranceAct, 1938. Themarket value of these securities as at 31st March, 2014 was `107,159(PreviousYear:` 115,920).

b. Ason31stMarch2014,theCompanyalsohascollateraldepositofGovernmentSecuritywithfacevalueof`300,000(PreviousYear ` 260,000) and cash `25,200(PreviousYear` 25,200) with Clearing Corporation of India Limited.

c. Ason31stMarch,2014,Fixeddepositof`250,000(PreviousyearNil)and`50,000(Previousyear:Nil)hasbeendepositedwith National Securities Clearing Corporation Limited and Indian Clearing Corporation Limited respectively towardsmarginrequirementforequitytradesettlement.

iv. All investments are performing assets18. Allocation of investments and income Thefundsoftheshareholdersandthepolicyholdersarekeptseparateandrecordsaremaintainedaccordingly.Investmentsmadeoutofthe

shareholders’ and policyholders’ funds are tracked from their inception and the income thereon is also tracked separately. Since the actual funds,investmentsandincomethereonaretrackedandreportedseparately,theallocationofinvestmentsandincomeisnotrequired.

19. Policyholders’ liabilities adequately backed by assets

Particulars Current Year Previous Year

Policyholders’liabilities(Includedfundsforfutureappropriation) (29,086,606) (22,395,751)Investments(Asperschedule8A)* 26,266,104 20,375,363 Loans to policyholders (As per schedule 9) 284,669 280,690 Fixeddeposits,bankbalancesandchequesonhand(Asperschedule11) 2,184,261 1,702,930 Otherreceivablesunderschedule12representing“Advancesandotherassets” 434,150 69,226

*Excludesprepaymentfund,(Liabilitynumbersarepresentedinbrackets)

20. Assets in the Internal Funds TheCompanyhaspresentedthefinancialstatementsofeachinternalfundtowhichthepolicyholderscanlinktheirpolicyinAnnexure 3.

AlsoadditionaldisclosuresasrequiredbytheCirculardated20thFebruary2007issuedbyIRDAaregiveninAnnexure 3A.

TheindustrywisedisclosuresgiveninAppendix 3 of Annexure 3A hasbeenmadeinaccordancewithIRDA(Investment)(5thAmendment)Regulations, 2013.

21. Assets restructured during the year

Particulars Current Year Previous Year

Totalamountofloanassetssubjecttorestructuring Nil Nil

Totalamountofstandardassetssubjecttorestructuring Nil Nil

Totalamountofsub-standardassetssubjecttorestructuring Nil Nil

Totalamountofdoubtfulassetssubjecttorestructuring Nil Nil

22. Claims Theclaimssettledandremainingunpaidforaperiodofmorethansixmonthsasatthebalancesheetdateamountto`50,682(Previous

Year `27,620).Reinsurancerecoverableisnettedoffagainstclaimexpensesincurred.

23. Foreign currency exposure Theyear-endforeigncurrencyexposuresthathavenotbeenhedgedbyaderivativeinstrumentorotherwisearegivenbelow:-

Amountpayableinforeigncurrencyonaccountofimportofservicesasfollows:

Foreign currencyCurrent Year Previous Year

INRAmount in Foreign

currencyINR

Amount in Foreign currency

USD 5,525 92 5,966 110 EURO 5,146 63 2,177 31

Schedules

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24. Disclosure for Unclaimed Amount of Policyholders Age-wise analysis of unclaimed amount by Policyholders/insured as required by circular no. IRDA/F&I/CIR/CMP/174/11/2010 dated

4thNovember,2010.

Particulars Total

Amount

AGE-WISE ANALYSIS1-6

months*7-12

months13-18

months19-24

months25-30

months31-36

monthsBeyond

36 Months

Claims settled but not paid to the policyholders/insureds due to any reasonsexceptunderlitigationfromthe insured/policyholders

1,286,227 1,242,525 14,282 11,107 6,156 3,472 705 7,980

(1,340,138) (1,312,518) (10,850) (4,837) (705) – (4,648) (6,580)

Sum due to the insured/policyholders on maturity or otherwise

378,723 326,950 6,646 9,226 6,460 9,631 4,766 15,044 (259,638) (223,754) (6,753) (9,077) (4,698) (6,442) (1,144) (7,770)

Anyexcesscollectionofthepremium/tax or any other charges which isrefundable to the policyholders either as terms of conditions of the policy or as per law or as may be directed by the Authority but not refunded so far

– – – – – – – –

– – – – – – – –

Chequesissuedbutnotencashedbythe policyholder/insured

2,325,189 936,581 254,572 242,234 455,596 119,874 105,046 211,286 (2,148,432) (1,038,090) (626,965) (122,302) (125,080) (84,480) (45,038) (106,477)

Total 3,990,139 2,506,056 275,500 262,567 468,212 132,977 110,517 234,310

Previous Year# (3,748,208) (2,574,362) (644,568) (136,216) (130,483) (90,921) (50,830) (120,827)

*Includes amounts outstanding for a period of less than 1 month #Previousyearamountsareinbrackets

Thecheques issuedbutnotencashedbypolicyholder/insuredcategory includes`686,311pertaining tochequeswhicharewithin thevalidityperiodbutnotyetencashedbypolicyholdersason31stMarch2014(PreviousYear` 655,976). This amount forms a part of bank reconciliationstatementandconsequentlynotconsideredinunclaimedamountofpolicyholdersunderSchedule13–CurrentLiabilities.

25. Provisions a) Employee Long-term Bonus Plan (‘the Plan’) ThecostestimateisdeterminedafterfactoringinassumptionsinrespectofcriteriaidentifiedinthePlanwhichincludethefollowing: 1. Units granted to employees under different options under the plan 2. Maximumpayoutovervestingperiodperunit 3. Employee attrition rate 4. Performancecondition

b) Long-Term Incentive Plan The cost estimate determined after the factoring in assumptions in respect of criteria identified in the Plan which include the

following: 1. Employee attrition rate 2. Performancecondition 3. Discount rate

C) Additional information in respect of provision shown as “Provision for Long-Term Bonus Plan” and “Provision for Renewal Bonus” in Schedule 14:

Particulars Long-Term Bonus Plan Long-Term Incentive Plan Renewal Bonus

Current Year Previous Year Current Year Previous Year Current Year Previous Year Opening balance Nil 391,369 83,435 55,835 Nil 664 Additionalprovisionmade Nil 118,169 136,993 64,401 Nil 103 Incurred and charged Nil Nil (63,366) (36,801) Nil (767)Unusedamountsreversed# Nil (509,538) Nil Nil Nil NilClosing balance Nil Nil 157,062 83,435 Nil Nil

Natureofobligation NA Long-Term Bonus

Long-Term Incentive

Long-Term Incentive NA Renewal

Bonus Expectedtiming NA NA Upto 3 Years Upto 3 Years NA Upto 2 Years

Assumptions NA Refer note (a) above

Refer note (b) above

Refer note (b) above NA 100%

#theunusedamountofLong-TermBonusPlanhasbeencreditedto“Employees’remuneration,welfarebenefitandothermanpowercost” in Schedule 3.

Schedules

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26. Employee benefits a) Defined benefit plans (i) Gratuity

TheCompanyprovidesforgratuity,adefinedbenefitretirementplancoveringallemployeesasatbalancesheetdateusingprojectedunitcreditmethod.Theplanprovidesalumpsumpaymenttovestedemployeesatretirementorterminationofemploymentbasedontherespectiveemployee’ssalaryandtheyearsofemploymentwiththeCompany.ThegratuitybenefitpayableisgreateroftheprovisionsofthePaymentofGratuityAct,1972andtheCompany’sGratuitySchemeasmentionedbelow:

Change in Defined benefit obligations Current Year Previous Year

Present value of Defined benefit obligations as at beginning of the year 243,281 187,535 Servicecost 41,155 43,081 Interest cost 21,313 17,717 Benefitspaid (29,296) (15,183)Pastservicecost – – Actuarial (gain)/loss due to curtailment – – Actuarial (gain)/loss on obligations (21,200) 10,131

Present value of Defined benefit obligations as at end of the year 255,253 243,281

Reconciliation of present value of the obligation and the fair value of the plan assetsOpeningFairValueofPlanassets 245,815 184,933 Contributions by the employer for the year 40,796 55,385 Benefitspaid (29,296) (15,183)ExpectedReturnonPlanAssets 18,867 13,238 Actuarial Gain/(Loss) (31) 7,442

Closing Fair Value of Plan assets 276,151 245,815

Net asset/(liability) as at end of the year 20,898 2,533

Cost recognised for the yearCurrentservicecost 41,155 43,081 Interest cost 21,313 17,717 Expectedreturnonplanassets (18,867) (13,238)Pastservicecost – – Actuarial (gain)/loss due to curtailment – – Actuarial (gain)/loss (21,170) 2,689

Net gratuity cost 22,431 50,249

TransitionalLiabilityexpendedinRevenueAccountInvestment in Category of Assets (% Allocation)Insurer Managed Funds* 100.00% 100.00%Group Stable Fund 0.00% 0.00%Group Short-Term Debt Fund 0.00% 0.00%Actuarial assumptions usedDiscount rate 9.00% 7.90%Rate of return on plan 7.50% 7.50%Salary escalation rate 6.00% 6.00%

*Theamount is invested inGroupMoneyMarketFundPlan1andGroupSecureFundPlan1ofBirlaSunLife InsuranceLimited,GratuityandGroupUnitLinkedProduct(GULP)scheme.Belowistheassetallocationoffund.

Asset allocation Current Year Previous Year

Debt securities 88.00% 91.00%Equityandmoneymarket 12.00% 9.00%

Total 100% 100.00%

Schedules

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Annual Report 2013-14

Experience Adjustments

Particulars 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

DefinedBenefitObligation 255,253 243,281 187,535 142,732 110,026 87,581

PlanAssets 276,151 245,816 184,933 129,960 103,097 84,708

Surplus/(Deficit) 20,898 2,534 (2,602) (12,772) (6,929) (2,873)

ExperienceadjustmentonPlanLiabilities (1,908) 2,578 17,495 3,726 (12,707) 12,288

ExperienceadjustmentonPlanAssets (31) 7,442 (3,236) 3,965 14,675 (2,195)

Thecontributionsexpectedtobepaidtotheplanduringtheannualperiodbeginningafterthebalancesheetdateis 45,384(PreviousYear: ` 45,000).

(ii) Accumulated Compensated Absences The liability foraccumulatedcompensatedabsencesasatbalancesheetdatehasbeencalculatedbyusingprojectedunitcredit

method.Thismethodtakesintoaccountthepatternofavailmentofleavewhileinserviceandqualifyingsalaryonthedateofavailmentofleave.Howeverincaseofshorttermliabilitytheprovisionhasbeenmadetotheextentof50%oftotalshort-termliability.

PresentvalueofobligationforaccumulatedcompensatedabsencesasdeterminedbytheActuaryisgivenbelow:

Particulars Current Year Previous Year

Presentvalueofobligationsasatendoftheyear 144,995 146,240

Fairvalueofplanassets – –

Actuarial assumptions used

Discount rate 9.00% 7.90%

Salary escalation rate 6.00% 6.00%

Cost recognised during the year (22,931) 63,967

(iii) ThedetailsoftheCompany’sDefinedBenefitPlansinrespectoftheCompanyownedProvidentFundTrust.

Particulars Current Year Previous Year

ContributiontotheCompanyOwnedEmployees’ProvidentFundTrust 172,818 187,976

TheGuidanceNoteonimplementingAS-15,EmployeeBenefits(Revised2005),issuedbytheICAIstatesthattheProvidentFundssetupbyemployers,whichrequireinterestshortfalltobemetbytheemployer,needstobetreatedasdefinedbenefitplans.TheCompanysetupProvidentFunddoesnothaveexistingdeficitofinterestshortfall.

The actuary has accordingly provided a valuation and based on the below provided assumptions there is no shortfall as at 31st March 2014.

The details of plan assets position are as under:

Particulars Current Year

PlanAssetsatFairValue 1,490,314

Liability Recognised in the Balance Sheet 1,487,846

Assumptionusedindeterminingthepresentvalueobligationofinterestrateguarantee

Discount Rate for the term of the Obligation 9.00%

Guaranteed Interest Rate 8.75%

b) Defined contribution plans TheCompanyhasrecognisedthefollowingamountsasexpenseintheRevenueaccount:

Particulars Current Year Previous Year

Contribution to superannuation fund 9,431 11,079

Contribution to Employees State Insurance Corporation 11,039 11,218

27. Segment reporting AsperAccountingStandard17on‘SegmentReporting’readwiththe“PreparationofFinancialStatementsandAuditor’sReportofInsurance

Companies,Regulations2002”,theCompanyisrequiredtoreportsegmentresultsseparatelyasParticipatingnon-linked,NonParticipatingUnitLinkedandNonLinkedbusinesses,whicharefurthersegmentedintoIndividualLife,GroupLife,IndividualPension,GroupPensionandIndividualHealthbusinesses.ThesameisdisclosedinAnnexure 1.

Schedules

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Birla Sun Life Insurance

28. Related Party Disclosure During theyearended31stMarch2014, theCompanyhashad transactionswith relatedpartiesasdefined inAccountingStandard18

on“RelatedPartyDisclosures”.RelatedPartieshavebeen identifiedby themanagementon thebasisof the informationavailablewiththe Company. Details of related parties with whom, the Company had transactions, nature of the relationship, transactions with them and balances at year-end, are detailed in Annexure 2.

29. Summary of financial statements A summary of the financial statements as per the formats prescribed by the IRDA in its circular dated 29thApril 2003 is provided in

Annexure 4.

30. Accounting Ratios AccountingratiosprescribedbytheIRDAinitscirculardated29thApril2003areprovidedinAnnexure 5.

31. Statement containing names, descriptions, occupations of and directorships held by the persons in charge of management of the business under Section 11 (2) of Insurance Act, 1938:

From 1st April, 2013 to 31st December 2013 Name : Mr.JayantDua Designation : Managing Director & CEO Occupation : Service Directorships Held during the year : as at 31st December 2013 Director : Central Insurance Repository Limited

From 1st January 2014 to 31st March 2014 Name : Mr.PankajRazdan Designation : Managing Director & CEO Occupation : Service DirectorshipsHeldduringtheyear : From1stJanuary2014 Directorin : AdityaBirlaFinancialSharedServicesLimited Birla SunLife Asset Management Company Limited

Resigned from the following : Aditya Birla Money Limited Entities w.e.f. 25th March 2014 Aditya Birla Money Mart Limited Aditya Birla Commodity Broking Limited AdityaBirlaSecuritiesPrivateLimited Birla Sun Life AMC (Mauritius) Limited

32. Penalty Asrequiredbycircularno.005/IRDA/F&A/CIR/MAY-09dated7thMay,2009,thedetailsofvariouspenalactionstakenbyvariousGovernment

Authoritiesforthefinancialyear2013-14arementionedbelow:-

Sr. No. AuthorityNon-Compliance/

Violation

Amount in Rs.Penalty

AwardedPenalty

PaidPenalty Waived/

Reduced

1 InsuranceRegulatoryandDevelopmentAuthority Nil Nil Nil Nil

2 ServiceTaxAuthorities NonCompliance Nil 80,370 Nil

3 IncomeTaxAuthorities Nil Nil Nil Nil

4 AnyotherTaxAuthorities Nil Nil Nil Nil

5 EnforcementDirectorate/AdjudicatingAuthority/Tribunalorany Authority under FEMA

Nil Nil Nil Nil

6 RegistrarofCompanies/NCLT/CLB/DepartmentofCorporateAffairs or any Authority under Companies Act, 1956

Nil Nil Nil Nil

7 PenaltyawardedbyanyCourt/tribunalforanymatterincludingclaimsettlementbutexcludingcompensation

Nil Nil Nil Nil

8 SecuritiesandExchangeBoardofIndia Nil Nil Nil Nil

9 Competition Commission of India Nil Nil Nil Nil

10 AnyotherCentral/State/LocalGovernment/ Statutory Authority

Nil Nil Nil Nil

Schedules

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33. Disclosures relating to controlled Fund As requiredbycircularno. IRDA/F&I/CIR/F&A/045/03/2010dated17thMarch,2010, thedetailsofcontrolled fund for thefinancialyear

2013-2014 and 2012-2013 are mentioned below:-

a) Statement Showing Controlled Fund

Particulars Current Year Previous Year

Computation of Controlled fund as per the Balance Sheet

Policyholders’Fund(LifeFund)

Participating

IndividualAssurance 271,749 10,119

IndividualPension – –

Anyother(Pl.Specify) – –

Non-participating

IndividualAssurance 14,738,220 10,869,777

Group Assurance 9,050,661 6,120,132

IndividualAnnuity 519,350 669,597

GroupPension 3,696,622 2,524,825

Health 76,652 105,910

Others – –

Linked

IndividualAssurance 170,651,197 160,678,057

Group Assurance 19,524,527 16,276,858

IndividualPension 10,573,375 10,844,802

Group Superannuation 5,441,414 5,381,071

Group Gratuity – –

Health 256,682 189,934

Funds for Future Appropriations 733,351 2,095,678

Total (A) 235,533,800 215,766,760

Shareholders' Fund

PaidupCapital 19,012,080 19,695,000

Reserves&Surpluses 2,682,948 4,800,000

FairValueChange 1,409 27

Total (B) 21,696,437 24,495,027

Misc.expensesnotwrittenoff

Credit/(Debit)fromP&LA/c. (9,130,223) (12,018,793)

Total (C) (9,130,223) (12,018,793)

Total shareholders’ funds (B+C) 12,566,214 12,476,234

Controlled Fund (Total (A+B+C)) 248,100,014 228,242,993

Schedules

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b) Reconciliation of the Controlled Fund from Revenue and Profit & Loss Account

Particulars Current Year Previous Year

Opening Balance of Controlled Fund 228,242,993 210,374,646

Add:Inflow

Income

PremiumIncome 48,330,521 52,162,991

Less: Reinsurance ceded (1,882,008) (1,645,530)

Net Premium 46,448,513 50,517,460

InvestmentIncome 24,958,744 20,700,492

Other Income 365,427 366,568

Funds transferred from Shareholders’ Accounts 2,580,793 1,994,559

Total Income 74,353,477 73,579,079

Less: Outgo

(i)Benefitspaid(Net) 36,654,284 36,586,380

(ii)InterimBonusPaid 734 –

(iii)ChangeinValuationofLiability 21,129,650 17,988,064

(iv)Commission 2,347,130 3,004,767

(v)OperatingExpenses 10,381,707 11,597,047

(vi)ProvisionforTaxation – –

(a) FBT – –

(b) I.T. – –

Total Outgo 70,513,505 69,176,258

Surplus of the Policyholders’ Fund 3,839,972 4,402,821

Less: transferred to Shareholders’ Account 5,202,299 6,266,015

Net Flow in Policyholders’ account (1,362,327) (1,863,194)

Add:NetincomeinShareholders’Fund 3,707,536 5,415,031

Less:InterimDividend&Dividenddistributiontaxthereon (818,965) (3,671,532)

Net In Flow/Outflow 1,526,244 (119,696)

Add:changeinvaluationLiabilities 21,129,367 17,988,063

Add:IncreaseinPaidupCapital – –

Add:IncreaseinSecuritiesPremium (2,799,972) –

Add:Credit/(Debit)/FairValueChangeAccount 1,382 (20)

Closing Balance of Controlled Fund 248,100,014 228,242,993

As Per Balance Sheet 248,100,014 228,242,993

Schedules

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c) Reconciliation with Shareholders’ and Policyholders’ Fund

Particulars Current Year Previous Year

Policyholders’ Funds

Policyholders’Funds-Traditional-PARandNON-PAR

OpeningBalanceofthePolicyholders’Fund 20,300,360 14,318,822

Add:SurplusoftheRevenueAccount – –

Add:ChangeinvaluationLiabilities 8,052,895 5,981,538

Total 28,353,255 20,300,360

As per Balance Sheet 28,353,255 20,300,360

Difference, if any – –

Policyholders’Funds-Linked*

OpeningBalanceofthePolicyholders’Fund 195,466,401 185,323,069

Add:SurplusoftheRevenueAccount (1,362,327) (1,863,193)

Add:ChangeinvaluationLiabilities 13,076,471 12,006,525

Total 207,180,545 195,466,401

As per Balance Sheet 207,180,544 195,466,402

Difference, if any – –

Shareholders’ Funds

Opening Balance of Shareholders’ Fund 12,476,234 10,732,754

Add:netincomeofShareholders’account(P&L) 3,707,536 5,415,031

Add: Infusion of Capital (2,799,972) –

Add:Credit/(Debit)/FairValueChangeAccount 1,382 (20)

Less:InterimDividend/Proposedandfinal&Dividenddistributiontaxthereon (818,965) (3,671,532)

Closing Balance of the Shareholders’ fund 12,566,215 12,476,233

As per Balance Sheet 12,566,215 12,476,233

* Includes Funds for Future Appropriations

34. TheBoardofDirectorsoftheCompanyhaveduringtheyearapprovedaninterimdividendaggregatingto`NIL(Previousyear:1,969,500)andproposedfinaldividendaggregatingto`700,000(Previousyear:1,181,700).

35. During the year, the Company has paid `199,924/-towardsservicetaxliabilityforwhichprovisionwasalreadymadeinearlieryearsandwasrecordedincommissionexpenses.Pursuanttosuchpayment,theCompany,beingentitledtoclaiminputcreditasperServiceTaxRules,hascreatedanassetforthesamewithcorrespondingcredittocommissionexpenses.

36. Debit balance in Profit & Loss account In accordance with IRDA (preparation of Financial Statements and Auditors’ Reports of Insurance Companies) Regulation 2002, debit balance

inProfitandLossaccountcarriedtotheBalanceSheethasbeenshownasdeductionfromGeneralreservetotheextentof` 406,127 as at 31st March 2014 (as at 31st March 2013 ` 406,127) and the balance of ` 9,130,223 as at 31st March 2014 (as at 31st March 2013 ` 12,018,793) is shown in Balance Sheet under application of funds.

37. Duringtheperiod,theCompanyhasreviseditsestimatewithrespecttoamountpayabletoinactiveadvisors.AsestimatedbytheCompany,outstandingbalancewouldbepayableuptooneyearpostagentbecominginactive.Previously,thesamewasreversedonagentbecominginactive.Accordingly,theCompanyhasrecorded`72,885towardsoutstandingbalanceforinactiveagentswithanageingofupto1yearinthe current year.

38. Thefiguresandnumbersundercolumnheaded“PreviousYear”inthefinancialstatementsunderreportweresubjectedtotheauditbythenjointauditorsvidetheirreportdated26thApril2013respectively.

Schedules

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Birla Sun Life Insurance

39. Previous year comparatives: Previousyearamountshavebeenreclassified,wherevernecessaryandtotheextentpossible,toconformtocurrentyear’sclassification.

Sr. No. Regrouped from Amount (Rs.) Regrouped to Reason

1 Gain/(Loss) on Amortisation 2,045 Interest,Dividend&Rent–Gross Amortised premium to be shown along withDiscountIncomeinFormA-PL

2 Gain/(Loss) on Amortisation 16,081 Interest,Dividend&Rent–Gross Amortised premium to be shown along with Discount Income in Form A-RA

3 Claims by Maturity 11,283 Otherbenefits–SurvivalandOthers SurvivalbenefitsmovedtoOtherbenefits

40. TheBonustoparticipatingpolicyholders,forcurrentyearasrecommendedbyAppointedActuaryhasbeenincludedinchangeinvaluationagainst policies in force.

For and on behalf of the Board of Directors

Kumar Mangalam Birla Donald A. Stewart Tarjani VakilChairman Director Director

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief ChiefFinancialOfficer

ExecutiveOfficer

Anil Kumar Singh Ashish LakhtakiaChiefActuarialOfficer Company Secretary

Mumbai, 25th April, 2014 & Appointed Actuary

Schedules

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Annual Report 2013-14

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66,0

83

15,

592

851

,529

6

22,1

06

19,

875

172

,790

4

43

5,0

18

11,

758,

483

(b)

ProfitonSale/Redem

ptionofInvestments

9,1

06,1

90

527

,728

7

42,7

63

147

,076

1

9,02

2 5

3,31

7 5

4,68

6 1

,244

1

5,02

3 2

8 1

,075

1

0,66

8,15

2 (c)

(Loss)onSale/Redem

ptionofInvestments

(6,5

20,5

94)

(401

,224

) (5

91,2

73)

(111

,820

) (1

5,26

2) (2

2,23

5) (1

0,56

8) (5

19)

(2,9

32)

(12)

(246

) (7

,676

,685

)(d)

Transfer/Gain(Loss)onrevaluation/changeinFairvalue

9,6

30,2

55

(2,2

15)

563

,624

(6

17)

17,

747

10,

208,

794

Sub-

Tota

l 2

0,08

7,45

8 1

,437

,845

1

,234

,998

4

00,7

22

37,

099

882

,611

6

66,2

24

20,

600

184

,881

4

59

5,8

47

24,

958,

744

Othe

r Inc

ome

(a)

Cont

ribut

ion

from

the

Shar

ehol

ders

’ Acc

ount

15,

929

703

,579

8

7,25

2 1

0,53

1 1

,763

,502

2

,580

,793

(b

) Ot

hers

(Int

eres

t etc

.) 1

91,2

88

24,

468

9,0

86

3,2

44

870

9

7,79

1 2

4,92

3 2

,590

7

,635

1

53

3,3

79

365

,427

Sub-

Tota

l 1

91,2

88

24,

468

9,0

86

19,

173

870

8

01,3

70

24,

923

2,5

90

94,

887

10,

684

1,7

66,8

81

2,9

46,2

20

TOTA

L (A

) 4

5,12

9,46

4 5

,291

,956

2

,666

,622

9

27,9

59

167

,875

1

0,23

7,40

4 3

,777

,661

3

67,8

53

1,4

75,3

58

31,

615

4,2

79,7

10

74,

353,

477

Com

mis

sion

782

,519

9

0 3

6,11

3 (7

4) 9

,662

8

66,0

26

13,

324

6,1

54

390

2

,336

6

30,5

90

2,3

47,1

30

OperatingExpensesrelatedtoInsuranceBusiness

2,8

65,6

17

126

,457

2

17,4

44

6,2

24

58,

327

3,4

77,4

80

213

,958

3

,282

2

8,08

4 2

1,80

5 3

,363

,029

1

0,38

1,70

7 Provisionfordoubtfuldebts

Bad

Debt

s w

ritte

n of

f –

ProvisionforTax

Provision(otherthantaxation)

(a)

Fordiminutioninthevalueofinvestment(net)

(b)

Others(tobespecified)

TOTA

L (B

) 3

,648

,136

1

26,5

47

253

,557

6

,150

6

7,98

9 4

,343

,506

2

27,2

82

9,4

36

28,

474

24,

141

3,9

93,6

19

12,

728,

837

Benefitspaid(N

et)

29,

710,

969

1,8

51,9

04

2,5

73,3

96

864

,265

1

,163

7

50,6

51

590

,946

6

,836

2

72,2

92

8,1

35

23,

727

36,

654,

284

Interim

BonusesPaid

––

– –

7

34

734

Changeinvaluationofliabilityagainstlifepoliciesinforce

(a)

Gros

s (5

59,5

02)

(3,8

88)

(253

,101

) (2

,796

) (1

1,41

4) 6

,676

,940

3

,034

,645

1

05,1

99

1,1

74,5

93

(653

) 2

69,5

90

10,

429,

613

(b)

FundReserve

7,3

07,4

33

3,2

47,6

67

(309

,750

) 6

0,34

2 6

6,74

8 –

1

0,37

2,44

0 (c)

FundReserve-PDF

2,6

65,7

08

38,

322

2,7

04,0

30

(d)

(Am

ount

ced

ed in

Re-

insu

ranc

e) (7

15,3

03)

827

(2

,344

) –

(1

7,18

2) (1

,533

,693

) (1

01,0

54)

(8)

(7,9

60)

(2,3

76,7

17)

(e)

Amou

nt a

ccep

ted

in R

e-in

sura

nce

TOTA

L (C

) 3

8,40

9,30

5 5

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2

,046

,523

9

21,8

11

39,

315

5,8

93,8

98

3,5

24,5

37

112

,035

1

,446

,885

7

,474

2

86,0

91

57,

784,

384

Surp

lus/

(Defi

cit)

(D)

= (

A) -

(B) -

(C)

3,0

72,0

23

68,

899

366

,542

6

0,57

1 –

2

5,84

2 2

46,3

82

0

3,8

40,2

56

Appr

opria

tions

Tran

sfer

to S

hare

hold

ers

Acco

unt

4,2

64,6

82

68,

899

524

,632

7

1,86

4 –

2

5,84

2 2

46,3

82

0

5,2

02,2

99

TransfertoOtherReserves

– –

Ba

lanc

e be

ing

Fund

s fo

r Fut

ure

Appr

opria

tions

(1,1

92,6

58)

(158

,091

) –

(1

1,29

4) –

(1

,362

,043

)

TOTA

L (D

) 3

,072

,024

6

8,89

9 3

66,5

41

60,

570

25,

842

246

,382

0

3

,840

,256

Th

e to

tal s

urpl

us a

s m

entio

ned

belo

w:

(a)

Interim

BonusesPaid

– –

7

34

734

(b)

AllocationofBonustoPolicyholders

– –

3

80,0

45

380

,045

(c)

Surplus/(Deficit)show

nintheRevenueAccount

3,0

72,0

24

68,

899

366

,541

6

0,57

0 –

2

5,84

2 2

46,3

82

0

3,8

40,2

56

(d)

Tota

l Sur

plus

: {a+

b+c}

3,07

2,02

4 6

8,89

9 36

6,54

1 0

60,5

70

25,8

42

246,

382

0 0

.00

380

,779

4,

221,

035

98

Page 100: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16Fo

rm A

-RA

A

nnex

ure

1Re

venu

e Ac

coun

t for

the

year

end

ed 3

1st M

arch

201

3Po

licyh

olde

rs’ A

ccou

nt (T

echn

ical

Acc

ount

)(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

SCH

Link

ed B

usin

ess

Non

Lin

ked

Busi

ness

PAR

No

n Li

nked

Bu

sine

ss

Indi

vidu

al

Life

Tota

lIn

divi

dual

Li

fe

Grou

p Li

fe

Pen

sion

In

divi

dual

Gr

oup

Pens

ion

Heal

th

Indi

vidu

al

Indi

vidu

al

Life

Gr

oup

Life

Pens

ion

Indi

vidu

al

Grou

p Pe

nsio

nHe

alth

In

divi

dual

Prem

iumearned-Net

(a)

Prem

ium

1 3

1,05

9,35

4 3

,022

,158

2

,260

,924

3

83,1

79

161

,914

9

,537

,023

3

,894

,435

6

7,88

5 1

,454

,655

4

5,29

6 2

76,1

68

52,

162,

991

(b)

Rein

sura

nce

cede

d (7

69,7

04)

(337

) –

(5

,529

) (2

29,1

20)

(633

,778

) –

(6

,079

) (9

83)

(1,6

45,5

30)

(c)

Rein

sura

nce

acce

pted

– –

Sub-

Tota

l 3

0,28

9,65

0 3

,022

,158

2

,260

,587

3

83,1

79

156

,385

9

,307

,903

3

,260

,657

6

7,88

5 1

,454

,655

3

9,21

7 2

75,1

85

50,

517,

461

Incomefrominvestments

(a)

Interest,Dividend&Rent-Gross

7,5

58,5

61

1,1

17,3

86

564

,396

3

69,9

69

11,

050

367

,886

6

92,0

42

12,

093

246

,639

4

89

181

1

0,94

0,69

2 (b)

ProfitonSale/Redem

ptionofInvestments

9,6

31,5

48

476

,015

7

60,8

98

157

,382

1

3,89

5 8

,580

4

9,48

4 2

82

16,

776

11

11,

114,

871

(c)

(Loss)onSale/Redem

ptionofInvestments

(4,1

28,3

33)

(142

,600

) (3

48,4

37)

(47,

146)

(6,0

82)

(1,8

56)

(37,

316)

(61)

(12,

426)

(2)

(4,7

24,2

59)

(d)

Transfer/Gain(Loss)onrevaluation/changeinFairvalue

3,0

09,4

52

155

,129

1

59,9

70

61,

333

(615

) –

3

,385

,269

(e

) Ga

in/(L

oss)

on

Amor

tisat

ion

(7,9

50)

(40)

(959

) (2

4) (1

12)

(7,3

43)

718

(2

41)

(119

) (1

0) (1

) (1

6,08

1)

Sub-

Tota

l 1

6,06

3,27

8 1

,605

,890

1

,135

,868

5

41,5

14

18,

136

367

,267

7

04,9

28

12,

073

250

,870

4

88

180

2

0,70

0,49

2 Ot

her I

ncom

e(a

) Co

ntrib

utio

n fro

m th

e Sh

areh

olde

rs’ A

ccou

nt –

3

7,27

4 1

,943

,010

1

4,27

5 1

,994

,559

(b

) Ot

hers

(Int

eres

t etc

.) 2

30,6

83

19,

404

14,

516

2,4

60

1,0

40

61,

621

25,

004

436

9

,340

2

91

1,7

73

366

,568

Sub-

Tota

l 2

30,6

83

19,

404

14,

516

2,4

60

38,

314

2,0

04,6

31

25,

004

436

9

,340

2

91

16,

048

2,3

61,1

27

TOTA

L (A

) 4

6,58

3,61

1 4

,647

,452

3

,410

,971

9

27,1

53

212

,835

1

1,67

9,80

1 3

,990

,589

8

0,39

4 1

,714

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3

9,99

6 2

91,4

13

73,

579,

080

Com

mis

sion

2 1

,271

,106

(0

) 4

2,58

9 8

74

17,

971

1,5

69,9

99

22,

305

(191

) –

6

,913

7

3,20

1 3

,004

,767

Op

eratingExpensesrelatedtoInsuranceBusiness

3 4

,916

,681

7

5,21

1 2

77,0

06

(2,9

49)

32,

857

5,8

57,4

21

212

,774

5

,203

1

1,58

0 3

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2

08,0

93

11,

597,

047

Provisionfordoubtfuldebts

Bad

Debt

s w

ritte

n of

f –

ProvisionforTax

Provision(otherthantaxation)

(a)

Fordiminutioninthevalueofinvestment(net)

(b)

Others(tobespecified)

TOTA

L (B

) 6

,187

,787

7

5,21

1 3

19,5

95

(2,0

75)

50,

828

7,4

27,4

20

235

,079

5

,012

1

1,58

0 1

0,08

3 2

81,2

94

14,

601,

814

Benefitspaid(N

et)

4 3

0,51

5,50

6 1

,996

,748

2

,626

,081

3

37,6

94

15,

648

686

,888

3

65,6

40

3,0

60

29,

320

9,7

94

36,

586,

379

Interim

BonusesPaid

– –

– –

Changeinvaluationofliabilityagainstlifepoliciesinforce

(a)

Gros

s (1

,639

,662

) 2

,231

(2

61,3

90)

1,7

44

49,

060

4,1

64,3

94

3,2

52,6

89

5,0

58

1,5

68,2

26

(2,4

57)

10,

996

7,1

50,8

89

(b)

FundReserve

7,0

95,5

15

2,5

16,8

77

171

,750

5

49,5

31

60,

379

10,

394,

052

(c)

FundReserve-PDF

1,6

12,4

73

1,6

12,4

73

(d)

(Am

ount

ced

ed in

Re-

insu

ranc

e) (5

10,6

78)

1,4

40

(408

) –

4

,068

(5

98,9

01)

(63,

744)

(250

) (8

77)

(1,1

69,3

50)

(e)

Amou

nt a

ccep

ted

in R

e-in

sura

nce

TOTA

L (C

) 3

7,07

3,15

4 4

,517

,296

2

,536

,033

8

88,9

69

129

,155

4

,252

,381

3

,554

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8

,118

1

,597

,546

7

,087

1

0,11

9 5

4,57

4,44

3 Su

rplu

s/(D

efici

t) (D

) =

(A)

- (B

) - (C

) 3

,322

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5

4,94

5 5

55,3

43

40,

259

32,

852

200

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6

7,26

4 1

05,7

39

22,

826

– 4

,402

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Ap

prop

riatio

nsTr

ansf

er to

Sha

reho

lder

s Ac

coun

t 5

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5

4,94

5 6

38,0

54

40,

259

200

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6

7,26

4 1

05,7

39

22,

826

6,2

66,0

15

TransfertoOtherReserves

– –

Bala

nce

bein

g Fu

nds

for F

utur

e Ap

prop

riatio

ns (1

,813

,333

) –

(8

2,71

1) –

3

2,85

2 –

(1

,863

,192

)

TOTA

L (D

) 3

,322

,670

5

4,94

5 5

55,3

43

40,

259

32,

852

200

,925

6

7,26

4 1

05,7

39

22,

826

4,4

02,8

23

The

tota

l sur

plus

as

men

tione

d be

low

:(a)

Interim

BonusesPaid

(b)

AllocationofBonustoPolicyholders

49,

379

49,

379

(c)

Surplus/(Deficit)show

nintheRevenueAccount

3,3

22,6

70

54,

945

555

,343

4

0,25

9 3

2,85

2 –

2

00,9

25

67,

264

105

,739

2

2,82

6 –

4

,402

,823

(d

) To

tal S

urpl

us: {

a+b+

c}3,

322,

670

54,9

45

555,

343

40,2

59

32,8

52

200,

925

67,2

64

105,

739

22,8

26

49,3

79

4,45

2,20

2

99

Page 101: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16Fo

rm A

-BS

Anne

xure

1Ba

lanc

e Sh

eet a

s at

31s

t Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Link

ed B

usin

ess

Non

Lin

ked

Busi

ness

PAR

No

n Li

nked

Bu

sine

ss

Indi

vidu

al

Life

Shar

ehol

ders

Fund

T

otal

In

divi

dual

Li

fe

Grou

p Li

fe

Pen

sion

In

divi

dual

Gr

oup

Pens

ion

Heal

th

Indi

vidu

al

Indi

vidu

al

Life

Gr

oup

Life

P

ensi

on

Indi

vidu

al

Grou

p Pe

nsio

n He

alth

In

divi

dual

Sour

ces

of F

unds

Shar

ehol

ders

’ fun

ds:

Shar

e Ca

pita

l–

––

––

––

––

––

19,0

12,0

8019

,012

,080

ReservesandSurplus

––

––

––

––

––

–2,

682,

948

2,68

2,94

8Credit/(Debit)/FairValueChangeAccount

––

––

––

––

––

–1,

409

1,40

9

Sub-

Tota

l–

––

––

––

––

––

21,6

96,4

3721

,696

,437

Borr

owin

gs–

––

––

––

––

––

––

Policyholders’Funds:

Credit/(Debit)FairValueChangeAccount

––

––

–23

,022

17,6

00–

––

––

40,6

22PolicyLiabilities

2,93

2,90

025

,319

251,

229

14,3

4672

,178

11,8

05,3

209,

025,

343

268,

122

3,68

2,27

64,

473

271,

749

–28

,353

,255

InsuranceReserves

––

––

––

––

––

–ProvisionforLinkedLiabilities

152,

241,

056

19,4

00,0

339,

945,

901

5,40

6,71

823

8,93

4–

––

––

––

187,

232,

642

Fund

s fo

r dis

cont

inue

d po

licie

s(i)

Di

scon

tinue

d on

acc

ount

of

non

-pay

men

t of p

rem

ium

4,71

6,12

0–

38,3

22–

––

––

––

––

4,75

4,44

2

(ii)

Othe

rsCredit/(Debit)FairValueChangeAccount

(Lin

ked)

13,6

94,0

2212

4,49

458

9,15

134

,696

17,7

47–

––

––

––

14,4

60,1

10

Tota

l Lin

ked

Liab

ilitie

s17

0,65

1,19

819

,524

,527

10,5

73,3

755,

441,

414

256,

681

––

––

––

–20

6,44

7,19

4

Sub-

Tota

l17

3,58

4,09

819

,549

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10,8

24,6

035,

455,

760

328,

859

11,8

28,3

429,

042,

943

268,

122

3,68

2,27

64,

473

271,

749

–23

4,84

1,07

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733,

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Tota

l17

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8,58

319

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10,8

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485,

455,

760

389,

780

11,8

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429,

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dsIn

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tsSh

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4,47

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299,

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14,3

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7,03

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170,

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19,5

24,5

2710

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5,44

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425

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447,

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s28

4,66

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669

FixedAssets

211,

539

31,6

5211

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71,

107

73,0

8932

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2,84

79,

876

198

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Curr

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ank

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037

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129,

596

2,60

310

9,98

722

85,

076,

825

AdvancesandOtherAssets*

1,58

8,31

831

1,52

8(2

95,5

39)

23,7

296,

331

1,81

9,87

5(2

27,0

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3,54

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Sub-

Tota

l (A)

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41,3

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6,00

260

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185,

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8,61

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rren

t Lia

bilit

ies

4,64

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7,53

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2,92

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43,0

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7,78

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593,

975

88,8

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205,

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267,

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ets

(C) =

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(464

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8,52

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(167

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959

(289

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––

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282,

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531

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125,

221

22,4

27,2

7325

7,27

0,85

9

Note

:Advancesandotherassetsallocatedtoshareholders’includetaxassets.

100

Page 102: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16Fo

rm A

-BS

Anne

xure

1Ba

lanc

e Sh

eet a

s at

31s

t Mar

ch 2

013

(Am

ount

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––

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4,20

7,70

528

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506,

674

17,1

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510

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––

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154,

688,

354

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114

4,56

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Liab

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721,

219

17,1

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4,58

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817

1,80

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507,

683

5,13

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AssetsHeldtoCoverLinkedLiabilities

160,

678,

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76,8

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5,38

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118

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193,

370,

723

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s28

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280,

690

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203,

844

19,8

3514

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2,51

51,

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62,5

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Cash

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1,64

84,

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30,5

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5,44

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1,28

4,42

627

5,64

993

,992

15,9

306,

731

1,13

0,58

316

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706

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737,

189

12,2

382,

416

3,06

8,52

8

Sub-

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l (A)

4,52

2,36

659

0,70

932

9,69

455

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23,6

112,

124,

817

575,

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8,51

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bilit

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5,36

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8,57

961

6,23

946

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39,4

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820,

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Provisions

959,

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93,4

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11,8

435,

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294,

761

120,

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Sub-

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6,32

0,13

252

1,98

568

6,11

858

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44,4

871,

326,

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270

22,8

6922

1,34

2(9

,133

)52

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628

10,1

86,9

37Ne

t Cur

rent

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ets

(C) =

(A-B

)(1

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(356

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)(2

,595

)(2

0,87

7)79

8,57

4(3

66,0

77)

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86)

(9,2

21)

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458

(1,6

75,9

75)

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––

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alanceinProfitandLossAccount

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reho

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ccou

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11,2

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166,

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26,5

5526

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240,

664,

248

Note

:Advancesandotherassetsallocatedtoshareholders’includetaxassets.

101

Page 103: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16SC

HEDU

LE 1

An

nexu

re 1

Prem

ium

for t

he y

ear e

nded

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ch 2

014

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991

102

Page 104: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16SC

HEDU

LE 2

An

nexu

re 1

Com

mis

sion

Exp

ense

s fo

r the

yea

r end

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arch

201

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ded

Net C

omm

issi

on 1

,271

,106

42,

589

874

1

7,97

1 1

,569

,999

2

2,30

5 (1

91)

6,9

13

73,

201

3,0

04,7

67

103

Page 105: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16SC

HEDU

LE 3

An

nexu

re 1

Oper

atin

g Ex

pens

es R

elat

ed to

Insu

ranc

e Bu

sine

ss fo

r the

yea

r end

ed M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Link

ed B

usin

ess

Non

Link

ed B

usin

ess

PAR

No

n Li

nked

Bu

sine

ss

Indi

vidu

al

Life

Tota

lIn

divi

dual

Li

fe

Gro

up

Life

P

ensi

on

Indi

vidu

al

Gro

up

Pens

ion

Hea

lth

Indi

vidu

al

Indi

vidu

al

Life

G

roup

Li

fe

Pen

sion

In

divi

dual

G

roup

Pe

nsio

n H

ealth

In

divi

dual

1Em

ploy

ees’

rem

uner

atio

n90

0,18

963

,330

121,

005

4,63

517

,560

1,95

0,69

652

,424

2,19

818

,607

13,2

801,

920,

467

5,06

4,39

12

Travel,conveyanceandvehicle

runningexpenses

25,5

564,

758

4,15

724

561

569

,394

4,02

682

1,45

949

669

,887

180,

675

3Trainingexpenses

3,11

4(2

1)94

8(0

)14

417

,655

(20)

20(7

)13

018

,823

40,7

864

Rents,ratesandtaxes

161,

111

5,07

618

,065

240

2,64

426

9,15

44,

333

330

1,57

11,

872

250,

111

714,

507

5Re

pairs

& m

aint

enan

ce42

,052

405

6,18

819

919

100,

916

345

120

125

719

99,7

0625

1,51

46

Printingandstationery

17,5

6327

71,

743

1027

433

,831

481

1598

164

32,7

3287

,188

7Communicationexpenses

47,2

401,

457

4,24

073

610

56,9

831,

240

7244

938

248

,760

161,

506

8Le

gal a

nd p

rofe

ssio

nal c

harg

es32

,505

926

3,19

062

457

44,3

3975

056

274

303

39,4

7712

2,33

99

Med

ical

fees

18,7

976

––

13,

553

17,5

28–

–16

475

40,3

7610

Auditor’sfees,expenses,etc.

––

––

––

––

––

––

(a)

i) as

aud

itor

2,28

349

153

222

1,67

742

215

101,

145

5,40

0

ii)outofpocketexpenses

265

618

02

194

50

21

133

626

(b)asadvisororinanyothercapacity,

in re

spec

t of

––

––

––

––

––

––

i)Taxationservices/matters

––

––

––

––

––

––

ii)Managem

entservices

429

929

04

315

80

32

215

1,01

411

Advertisementandpublicity

114,

500

4,51

711

,002

167

1,93

230

3,69

27,

869

(72)

1,59

896

031

0,92

175

7,08

512

Inte

rest

and

ban

k ch

arge

s73

,417

–5,

359

–75

962

,817

–85

–40

213

,916

156,

755

13Ot

hers

:1)Distributionexpenses

79,0

2716

8,16

0(2

9)1,

407

214,

755

2,60

6(2

5)13

475

522

0,06

852

6,87

42)

Ag

ents

recr

uitm

ent,s

emin

ar a

nd

otherexpenses

1,56

4(0

)19

8(0

)33

4,59

940

12

214,

728

11,1

86

3)Recruitmentandsem

inarexpenses

2,39

23,

928

1,03

120

615

219

,710

3,31

822

1,20

314

421

,592

53,6

984)ITexpenses(includingmaintenance)

106,

686

5,21

69,

460

246

1,36

212

6,11

54,

452

161

1,61

484

710

7,11

336

3,27

25)Policystam

ps8,

984

382,

463

9112

127

,989

112,

709

–26

612

78,

786

161,

574

6)(Profit)/Lossonsaleofassets

(1,8

09)

(47)

(53)

(1)

(7)

21(4

3)(0

)(1

5)2

613

(1,3

39)

7)ServiceTaxexpenditureincluding

provisionforunutilisedcredit*

(52,

024)

(970

)(3

,997

)(4

6)(5

69)

(48,

674)

(828

)(6

5)(3

00)

(316

)(4

86)

(108

,275

)

8)Electricityexpenses

27,0

5620

64,

351

1064

872

,631

176

8664

521

72,7

9717

8,54

69)Miscellaneousexpenses

3,60

767

427

015

91

(100

)30

46

126

(1)

955,

141

10)Ou

tsourcingexpenses

80,1

151,

564

6,77

880

971

87,7

691,

322

114

480

584

72,7

1325

2,49

014

Depr

ecia

tion

50,5

151,

036

4,37

855

628

57,4

4987

174

316

384

48,2

4316

3,94

915

Servicetaxonpremium

1,12

0,48

334

,001

8,30

8–

27,6

37–

––

––

–1,

190,

429

Tota

l2,

865,

617

126,

457

217,

444

6,22

458

,327

3,47

7,48

021

3,95

83,

282

28,0

8421

,805

3,36

3,02

910

,381

,707

104

Page 106: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16SC

HEDU

LE 3

An

nexu

re 1

Oper

atin

g Ex

pens

es R

elat

ed to

Insu

ranc

e Bu

sine

ss fo

r the

yea

r end

ed M

arch

201

3(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Link

ed B

usin

ess

Non

Link

ed B

usin

ess

PAR

No

n Li

nked

Bu

sine

ss

Indi

vidu

al

Life

Tota

lIn

divi

dual

Li

fe

Grou

p Li

fe

Pens

ion

Indi

vidu

al

Grou

p Pe

nsio

n He

alth

In

divi

dual

In

divi

dual

Li

fe

Grou

p Li

fe

Pens

ion

Indi

vidu

al

Grou

p Pe

nsio

n He

alth

In

divi

dual

1Em

ploy

ees'

rem

uner

atio

n, w

elfa

re

benefitsandotherm

anpowercosts

1,63

7,99

5 6

,070

8

3,05

0 (6

,165

) 4

,757

3

,438

,901

5

4,23

6 2

,031

1

,523

2

,323

1

08,2

65

5,3

32,9

86

2Travel,conveyanceandvehiclerunning

expenses

80,

057

312

4

,411

1

51

530

1

44,1

20

4,6

75

112

9

1 2

57

4,7

14

239

,430

3Trainingexpenses

(2,7

77)

(51)

(986

) 7

(5

) 6

8,23

3 2

1 (4

0) (2

9) (2

) 2

,830

6

7,20

1 4

Rents,ratesandtaxes

285

,527

6

16

16,

347

96

59

484

,411

9

72

410

3

05

17

17,

176

805

,936

5

Repa

irs &

mai

nten

ance

74,

325

116

3

,555

1

9 1

1 1

85,9

70

189

7

8 5

8 3

6

,681

2

71,0

05

6Printingandstationery

45,

627

101

2

,663

1

6 1

0 6

9,34

4 2

78

70

50

3

2,0

26

120

,188

7

Communicationexpenses

105

,887

1

76

7,1

10

78

32

101

,808

9

52

200

7

6 1

3 3

,298

2

19,6

30

8Le

gal a

nd p

rofe

ssio

nal c

harg

es 1

7,58

7 5

35

1,3

85

325

1

3 3

,756

1

,540

1

1 6

0 1

(8

43)

24,

370

9M

edic

al fe

es 1

3,91

8 –

2

3 –

1

08

41,

215

812

0

2

23

677

5

6,97

6 10

Auditor'sfees,expenses,etc.

(a)

i) as

aud

itor

3,2

43

291

2

39

41

16

978

4

16

7

142

5

2

2 5

,400

ii)outofpocketexpenses

221

(5

) 1

9 4

1

4

9 3

8 0

(0

)(0

) (5

) 3

22

(b)asadvisororinanyothercapacity,

in re

spec

t of

i)Taxationservices/matters

ii)Managem

entservices

807

5

8 6

1 1

1 4

2

33

109

2

3

0 1

2

1

,318

11

Advertisementandpublicity

441

,989

1

,398

2

8,13

7 (3

54)

114

4

49,9

69

5,4

84

876

6

43

31

18,

381

946

,668

12

Inte

rest

and

ban

k ch

arge

s 6

2,12

8 5

,457

4

,563

9

50

281

1

6,15

7 7

,050

1

20

2,3

65

76

340

9

9,48

7 13

Othe

rs

1)DistributionExpenses

83,

225

4,0

87

346

,848

2

9,07

2 4

63,2

32

2)

Agen

ts re

crui

tmen

t, se

min

ar a

nd

otherexpenses

2,1

02

(37)

22,

939

(6)

1,6

30

26,

628

3)RecruitmentandSem

inarexpenses

45,

019

233

2

,852

6

6 1

2 6

1,88

8 2

42

64

60

3

2,8

25

113

,264

4)ITExpenses(incl.m

aintenance)

296

,407

9

26

21,

806

141

8

8 8

9,40

9 1

,436

6

25

458

2

5 2

,064

4

13,3

85

5)PolicyStam

ps

13,

804

56

20

40,

917

117

,412

5

6

15

172

,829

6)(Profit)/Lossonsaleofassets

4,1

14

691

2

67

40

27

1,4

69

405

1

3 3

08

7

114

7

,455

7)ServiceTaxexpenditureincluding

provisionforunutilisedcredit*

8)ElectricityExpenses

53,

111

82

2,3

62

12

8

142

,068

1

22

54

40

2

4,7

46

202

,607

9)Miscellaneousexpenses

20,

726

1,3

79

1,5

79

279

9

5 5

,911

2

,843

3

7 7

17

29

13

33,

608

10)Ou

tsourcingExpenses

188

,763

1

73

12,

566

33

15

109

,493

3

19

321

8

2 4

2

,700

3

14,4

69

14De

prec

iatio

n 1

03,5

19

9,4

37

7,6

06

1,3

01

527

3

1,33

5 1

3,22

3 2

18

4,5

96

149

7

50

172

,661

15

ServiceTaxonPremium

1,3

39,3

57

47,

160

73,

321

26,

154

1,4

85,9

92

Tota

l 4

,916

,681

7

5,21

1 2

77,0

06

(2,9

49)

32,

857

5,8

57,4

21

212

,774

5

,203

1

1,58

0 3

,170

2

08,0

93

11,5

97,0

47

105

Page 107: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16SC

HEDU

LE 4

An

nexu

re 1

Bene

fits

Paid

(Net

) for

the

year

end

ed M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

L

inke

d Bu

sine

ss

Non

Lin

ked

Bus

ines

sPA

R

Non

Link

ed

Busi

ness

In

divi

dual

Li

fe

Tota

l In

divi

dual

Li

fe

Gro

up

Life

P

ensi

on

Indi

vidu

al

Gro

up

Pens

ion

Hea

lth

Indi

vidu

al

Indi

vidu

al

Life

Gr

oup

Life

Pen

sion

In

divi

dual

G

roup

Pe

nsio

n H

ealth

In

divi

dual

1In

sura

nce

Clai

ms

(a)

Clai

ms

by D

eath

1,4

97,5

31

50,

227

3,4

85

221

9

92,5

55

826

,420

1

,032

4

97

622

2

2,34

0 3

,394

,930

(b)

Clai

ms

by M

atur

ity 5

22,7

03

69,

709

7,3

49

599

,761

(c)Annuities/PensionPayment

159

4

,390

4

,549

(d)Otherbenefits

(i)

Su

rren

der

27,

939,

615

1,8

51,9

04

2,4

52,2

97

860

,780

2

,432

2

2,02

1 4

12,6

31

436

2

71,7

95

2,2

30

62

33,

816,

203

(ii

) Ri

ders

20,

837

200

2

1,73

8 1

1,59

9 –

1

,328

5

5,70

2

(ii

i) He

alth

(78)

8,9

44

8,8

66

(iv)

SurvivalandOthers

176

,699

9

64

202

4

,359

9

78

25

(3)

183

,224

2(A

mou

nt c

eded

in re

insu

ranc

e):

(a)

Clai

ms

by D

eath

(446

,416

) –

(1

) –

(2

97,3

71)

(659

,863

) –

(1

,403

,651

)

(b)

Clai

ms

by M

atur

ity –

(c)Annuities/PensionPayment

(d)Otherbenefits(H

ealth)

(1,6

14)

(3,6

86)

(5,3

00)

3Am

ount

acc

epte

d in

rein

sura

nce:

(a)

Clai

ms

by D

eath

(b)

Clai

ms

by M

atur

ity –

(c)Annuities/PensionPayment

(d)Otherbenefits

Tota

l 2

9,71

0,96

9 1

,851

,904

2

,573

,396

8

64,2

65

1,1

63

750

,651

5

90,9

46

6,8

36

272

,292

8

,135

2

3,72

7 3

6,65

4,28

4

106

Page 108: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16SC

HEDU

LE 4

An

nexu

re 1

Bene

fits

Paid

(Net

) for

the

year

end

ed M

arch

201

3(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Link

ed B

usin

ess

Non

Link

ed B

usin

ess

PAR

No

n Li

nked

Bu

sine

ss

Indi

vidu

al

Life

Tota

lIn

divi

dual

Li

fe

Grou

p Li

fe

Pens

ion

Indi

vidu

al

Grou

p Pe

nsio

n He

alth

In

divi

dual

In

divi

dual

Li

fe

Grou

p Li

fePe

nsio

n In

divi

dual

Gr

oup

Pens

ion

Heal

th

Indi

vidu

al

1In

sura

nce

Clai

ms:

(a)

Clai

ms

by D

eath

1,52

5,97

2–

51,2

172,

284

475

947,

154

607,

280

302

233

––

3,13

4,91

7

(b)

Clai

ms

by M

atur

ity24

5,44

3–

5,78

1–

–12

,380

–3

––

–26

3,60

7

(c)Annuities/PensionPayment

–10

3–

––

––

2,01

5–

––

2,11

8

(d)OtherB

enefits(Surrender/

Withdraw

als/Health)

29,2

59,9

091,

996,

645

2,56

9,08

333

5,41

015

,252

38,3

9024

4,80

774

029

,087

10,1

80–

34,4

99,5

03

2(A

mou

nt c

eded

in re

insu

ranc

e):

(a)

Clai

ms

by D

eath

(515

,153

)–

––

–(3

08,6

99)

(486

,447

)–

––

–(1

,310

,299

)

(b)

Clai

ms

by M

atur

ity–

––

––

––

––

––

(c)Annuities/PensionPayment

––

––

––

––

––

––

(d)OtherB

enefits(H

ealth)

(665

)–

––

(79)

(2,3

37)

––

–(3

86)

–(3

,467

)

3Am

ount

acc

epte

d in

rein

sura

nce:

(a)

Clai

ms

by D

eath

––

––

––

––

––

––

(b)

Clai

ms

by M

atur

ity–

––

––

––

––

––

(c)Annuities/PensionPayment

––

––

––

––

––

––

(d)OtherB

enefits

––

––

––

––

––

––

Tota

l30

,515

,506

1,99

6,74

82,

626,

081

337,

694

15,6

4868

6,88

836

5,64

03,

060

29,3

209,

794

–36

,586

,379

107

Page 109: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16Di

sclo

sure

s in

term

of A

ccou

ntin

g St

anda

rd 1

8 on

Rel

ated

Par

ty D

iscl

osur

e fo

r the

yea

r end

ed 3

1st M

arch

201

4 An

nexu

re 2

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)(A

) En

terp

rises

whe

re c

ontr

ol e

xist

s

Holdingcompany

1AdityaBirlaNuvoLimited

ForeignPartn

er

2SunLifeFinancial(India)InsuranceInvestmentsInc.

(B)

Key

Man

agem

ent P

erso

nnel

1

Mr.JayantDua(upto31stDecem

ber,2013)

2Mr.PankajRazdan(w.e.f.1stJanuary,2014)

(C)

Disc

losu

res

of tr

ansa

ctio

n be

twee

n th

e Co

mpa

ny a

nd re

late

d pa

rtie

s an

d ou

tsta

ndin

g ba

lanc

es a

s at

the

year

end

:

Sr.

No.

Nam

e of

the

rela

ted

Part

y w

ith w

hom

the

tran

sact

ion

has

been

mad

eDe

scrip

tion

of

Rel

atio

nshi

p w

ith

the

part

yNa

ture

of T

rans

actio

n A

udite

d tr

ansa

ctio

ns

durin

g th

e ye

ar e

nded

A

udite

d Ou

tsta

ndin

g ba

lanc

e re

cove

rabl

e/(p

ayab

le) a

s on

3

1st M

arch

201

4 3

1st M

arch

201

3 3

1st M

arch

201

4 3

1st M

arch

201

3 1

23

4 5

6

7

8

1

AdityaBirlaNuvoLimited

Hold

ing

Com

pany

a)R

eimbursem

entofotherexpenses

16

(3)

b)R

ecoveryofexpenses

96

c)P

urchaseofNCD

248

,365

d)Interestincom

eonNCD

2,1

10

19,

744

17,

586

e)D

iscountIncom

eonCP

6,0

58

f)Dividendpaid(Interim

) –

1

,457

,430

g)FinalDividendpaidfor2

012-13

874

,458

h)

Com

mer

cial

pap

er p

urch

ase

243

,942

i)

Com

mer

cial

pap

er R

edem

ptio

n –

2

50,0

00

j)SharecapitalReduction

505

,361

k)S

harePremium

1,5

66,6

18

2SunLifeFinancial(India)InsuranceInvestment

ForeignProm

oter

a)D

ividendpaid(Interim)

512

,070

b)FinalDividendpaidfor2

012-13

307

,242

c)

Sha

re c

apita

l Red

uctio

n 1

77,5

59

d)S

harePremium

550

,434

3

Adity

a Bi

rla F

inan

ce L

imite

d Fe

llow

Sub

sidi

ary

a)R

eimbursem

entofotherexpenses

129

6

92

b)R

ecoveryofexpenses

21,

696

5,7

92

7,9

35

c) C

omm

erci

al p

aper

Red

empt

ion

100

,000

d)

Dis

coun

t on

Com

mer

cial

pap

er –

4

,136

e)

Tra

nsfe

r of a

sset

s –

3

,133

f)

SecurityDepositreceived

8,8

30

(8,8

30)

g)PurchaseofNCD

100

,000

1

00,0

00

h)Interestincom

eonNCD

3,0

78

3,0

78

4AdityaBirlaMinacsWorldwideLimited

Fello

w S

ubsi

diar

ya)Expensesforoutsourcing

71,

745

95,

591

(9,0

93)

(15,

531)

b)R

ecoveryofExpenses

1,0

99

5Ad

itya

Birla

Mon

ey M

art L

imite

d Fe

llow

Sub

sidi

ary

a)Paymenttow

ardsAdvertisem

entExpenses

13,

150

11,

935

(43)

b)R

ecoveryofexpense

413

4

96

165

6

AdityaBirlaMoneyInsuranceAdvisoryServicesLimited

Fello

w S

ubsi

diar

ya)PaymentofC

ommission

63,

742

80,

180

3,8

26

(1,1

62)

b)R

eimbursem

entofAdvertisem

entExpenses

17,

000

21,

000

c)A

dvanceagainstRenew

alCom

mission

12,

500

7Ad

itya

Birla

Mon

ey L

imite

d Fe

llow

Sub

sidi

ary

a) B

roke

rage

1

0,89

2 1

0,62

7 –

b)R

ecoveryofexpense

12

11

8AdityaBirlaFinancialServicesPrivateLimited

Fello

w S

ubsi

diar

ya)A

dvancegivenfor IndiaBullProperties

b)R

ecoveryofexpense

2

9AdityaBirlaFinancialSharedServicesLimited

Fello

w S

ubsi

diar

ya)A

dvancegivenforexpenses

108

,133

1

19,0

43

(7,7

17)

301

b)R

eimbursem

entofexpenses

114

,384

1

19,3

81

c)R

ecoveryofexpense

2,4

41

4,3

41

10Ad

itya

Birla

Insu

ranc

e Br

oker

s Li

mite

dFe

llow

Sub

sidi

ary

a)R

eimbursem

entofexpenses

345

6

b)R

ecoveryofexpenses

347

4

73

5

11AdityaBirlaCustomerServicePrivateLimited

Fello

w S

ubsi

diar

ya)R

eimbursem

entofAdvertisem

entExpenses

403

2

,250

(6

6) –

12

AdityaBirlaCapitalAdvisorsPrivateLimited

Fello

w S

ubsi

diar

ya)R

ecoveryofexpenses

12

13Bi

rla S

un L

ife A

sset

s M

anag

emen

t Com

pany

Lim

ited

Fello

w S

ubsi

diar

ya)R

eimbursem

entofexpenses

2,8

67

1,4

55

(1,1

05)

(51%

SubsidiaryofABFSPL)(w

.e.f.10thOct.,12,earlierw

asaJointVenture)

b)R

ecoveryofexpenses

4,6

67

1,2

33

2,0

82

14Mr.JayantDua(upto31stDecem

ber2

013)ManagingDirector

KeyManagem

entPersonnel

a) M

anag

eria

l Rem

uner

atio

n 3

8,48

2 2

2,08

8 –

Mr.PankajRazdan(w.e.f.1stJanuary2014)ManagingDirector

KeyManagem

entPersonnel

a) M

anag

eria

l Rem

uner

atio

n 6

,704

Note1:Prem

iumreceivedfrom

therelatedpartiesagainstlifeinsuranceproductssoldatmarketratesfortheyearended31stM

arch2014is`

27,

531

and

for t

he y

ear e

nded

31s

t Mar

ch 2

013:

` 1

5,51

3.Note2:Therearenoprovisionsfordoubtfuldebts,amountswrittenofforamountswrittenbackpertainingtotheabovetransactions.

Note3:Relatedpartyrelationshiphavebeenidentifiedbythemanagem

entandrelieduponbytheauditors.

Note4:Relatedpartytransactionsdisclosedabovedenotethetransactionsenteredduringtheexistenceofrelatedpartyrelationship.

Note5:Alltheabovetransactionsarereportedinclusiveofservicetax,whereverapplicable.

Note6:TransactionsofA

dityaBirlaM

oneyInsuranceAdvisoryServiceLimitedandAdityaBirlaInsuranceBrokersLimitedfortheyearended31stM

arch2014includesserviceta

xof`1,870andNilrespectivelyandfortheyearended31stM

arch2013is

` 2,

310

and

`52.69respectively.

108

Page 110: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16Fo

rm A

-RA(

UL)

Anne

xure

3Fu

nd R

even

ue A

ccou

nt fo

r the

yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Sch

Ind.

Ass

ure

Ind.

Inco

me

Adva

ntag

e In

d. P

rote

ctor

Ind.

Bui

lder

Ind.

Bal

ance

rCu

rren

t Ye

arPr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 13

2,61

212

1,27

233

4,76

328

3,43

831

2,41

831

7,12

417

7,68

118

6,39

020

,095

19,9

53Dividendincome

––

––

6,58

96,

756

8,21

78,

558

1,27

01,

496

Profit/Lossonsaleofinvestment

2,07

81,

834

(10,

679)

17,2

42(5

,077

)47

,105

38,2

5744

,859

6,26

19,

876

Profit/Lossoninterfundtransfer/saleofinvestment

9,29

911

,459

343

3,50

498

06

(2,5

03)

(6,1

26)

(1,3

82)

330

MiscellaneousIncome/(Expenses)

––

––

––

––

––

Unr

ealis

ed G

ain/

loss

* (2

,422

)4,

687

(110

,334

)73

,664

(49,

952)

69,7

733,

399

75,0

392,

744

5,10

2

Tot

al (A

) 14

1,56

713

9,25

221

4,09

337

7,84

826

4,95

844

0,76

422

5,05

130

8,72

028

,988

36,7

57Fundmanagem

entexpenses

16,2

8414

,574

44,2

0836

,767

46,0

1746

,358

30,4

0831

,029

4,62

34,

657

Fundadministra

tionexpenses

––

––

––

––

––

Oth

er c

harg

es#

F-5

27

,159

30,2

0511

5,68

595

,898

105,

332

118,

776

52,2

1857

,673

10,4

3711

,956

Tot

al (B

) 43

,443

44,7

7915

9,89

313

2,66

515

1,34

916

5,13

482

,626

88,7

0215

,060

16,6

13 N

et In

com

e fo

r the

yea

r (A-

B)

98,1

2494

,473

54,2

0024

5,18

311

3,60

927

5,63

014

2,42

522

0,01

813

,928

20,1

44Add:Fundrevenueaccountatthebeginningoftheyear

248,

530

154,

057

307,

241

62,0

581,

157,

674

882,

044

1,10

2,73

288

2,71

47,

576

(12,

568)

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 34

6,65

424

8,53

036

1,44

130

7,24

11,

271,

283

1,15

7,67

41,

245,

157

1,10

2,73

221

,504

7,57

6

Part

icul

ars

Sch

In

d. E

nhan

cer

Ind.

Cre

ator

Ind.

Mag

nifie

rIn

d. M

axim

iser

Ind.

Mul

tiplie

rCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 3,

874,

831

3,86

4,67

313

6,26

312

6,92

010

3,62

910

6,80

324

,199

18,3

9620

,990

22,8

23Dividendincome

296,

599

313,

628

26,5

4024

,840

133,

203

160,

808

324,

820

409,

289

59,8

5669

,200

Profit/Lossonsaleofinvestment

1,23

8,10

71,

430,

146

49,3

2698

,756

473,

984

605,

725

395,

423

1,50

7,19

011

,916

475,

128

Profit/Lossoninterfundtransfer/saleofinvestment

(19,

331)

(54,

728)

4,41

1(8

,679

)3,

045

(25,

327)

10,6

40(3

,326

)(2

4,95

2)20

,440

MiscellaneousIncome/(Expenses)

––

––

––

––

––

Unr

ealis

ed G

ain/

loss

* 39

4,24

21,

459,

641

177,

258

62,2

5584

0,17

316

8,86

82,

546,

749

93,6

5664

2,01

9(3

39,8

63)

Tot

al (A

) 5,

784,

448

7,01

3,36

039

3,79

830

4,09

21,

554,

034

1,01

6,87

73,

301,

831

2,02

5,20

570

9,82

924

7,72

8Fundmanagem

entexpenses

913,

349

921,

292

46,4

9943

,748

144,

811

162,

408

305,

267

358,

808

50,1

1163

,184

Fundadministra

tionexpenses

––

––

––

––

––

Oth

er c

harg

es#

F-5

2,

938,

353

3,98

2,63

756

,817

64,1

5616

4,78

021

3,66

258

3,79

480

7,15

511

2,25

119

4,15

5

Tot

al (B

) 3,

851,

702

4,90

3,92

910

3,31

610

7,90

430

9,59

137

6,07

088

9,06

11,

165,

963

162,

362

257,

339

Net

Inco

me

for t

he y

ear (

A-B)

1,

932,

746

2,10

9,43

129

0,48

219

6,18

81,

244,

443

640,

807

2,41

2,77

085

9,24

254

7,46

7(9

,611

)Add:Fundrevenueaccountatthebeginningoftheyear

(1,8

81,2

40)

(3,9

90,6

71)

1,70

6,86

61,

510,

678

3,01

4,28

02,

373,

474

(1,5

03,9

87)

(2,3

63,2

29)

(1,0

49,5

99)

(1,0

39,9

87)

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 51

,506

(1,8

81,2

40)

1,99

7,34

81,

706,

866

4,25

8,72

33,

014,

280

908,

783

(1,5

03,9

87)

(502

,132

)(1

,049

,599

)*Netchangeinmarktomarketvalueofinvestments

#Grossofservicetax

109

Page 111: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Annexures to Schedule 16Fo

rm A

-RA(

UL)

Anne

xure

3Fu

nd R

even

ue A

ccou

nt fo

r the

yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Sch

Su

per 2

0In

d. P

latin

um P

lus

1In

d. P

latin

um P

lus

2In

d. P

latin

um P

lus

3In

d. P

latin

um P

lus

4 C

urre

nt

Year

Pr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 2

,409

1

,049

1

03,0

63

122

,495

1

42,7

86

159

,209

1

21,9

43

145

,487

7

3,76

3 9

2,83

9 Dividendincome

36,

417

30,

569

37,

476

44,

133

72,

060

84,

629

93,

782

108

,347

7

5,81

1 8

3,16

2 Profit/Lossonsaleofinvestment

247

,779

2

0,63

0 5

0,32

4 1

23,2

02

118

,296

3

06,5

63

77,

242

290

,416

3

9,43

9 2

27,8

99

Profit/Lossoninterfundtransfer/saleofinvestment

4,4

19

9,5

44

456

3

,730

(3

,019

) 2

1,69

9 1

1,46

8 1

4,05

1 (5

,335

) (2

,898

)MiscellaneousIncome/(Expenses)

– –

– –

––

––

Unre

alis

ed G

ain/

loss

* 3

04,8

72

142

,193

2

52,6

72

87,

226

485

,170

4

7,35

0 6

80,3

96

245

,854

5

64,0

58

193

,433

To

tal (

A)

595

,896

2

03,9

85

443

,991

3

80,7

86

815

,291

6

19,4

50

984

,831

8

04,1

55

747

,736

5

94,4

35

Fundmanagem

entexpenses

43,

935

31,

331

56,

451

67,

637

98,

223

115

,864

1

17,0

42

135

,850

8

8,73

9 1

02,2

27

Fundadm

inistra

tionexpenses

– –

– –

––

––

Othe

r cha

rges

# F

-5

72,

923

73,

637

44,

317

51,

218

44,

966

49,

626

49,

324

85,

516

41,

359

94,

260

Tota

l (B)

1

16,8

58

104

,968

1

00,7

68

118

,855

1

43,1

89

165

,490

1

66,3

66

221

,366

1

30,0

98

196

,487

Ne

t Inc

ome

for t

he y

ear (

A-B)

4

79,0

38

99,

017

343

,224

2

61,9

31

672

,104

4

53,9

60

818

,465

5

82,7

89

617

,638

3

97,9

48

Add:Fundrevenueaccountatthebeginningoftheyear

10,

342

(88,

675)

275

,263

1

3,33

2 2

,287

,169

1

,833

,210

3

37,3

67

(245

,422

) 4

4,37

7 (3

53,5

71)

Fund

reve

nue

acco

unt a

t the

end

of t

he y

ear

489

,380

1

0,34

2 6

18,4

87

275

,263

2

,959

,273

2

,287

,169

1

,155

,831

3

37,3

67

662

,015

4

4,37

7

Part

icul

ars

Sch

Ind.

Pla

tinum

Ad

vant

age

Ind.

Pla

tinum

Pre

mie

rIn

d. F

ores

ight

FP

Ind.

For

esig

ht S

PTi

tani

um 1

Curr

ent

Year

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

arIn

com

e fr

om in

vest

men

ts

Inte

rest

inco

me

43,

694

36,

425

80,

516

91,

238

320

,649

8

0,15

6 3

,052

9

99

15,

081

16,

433

Dividendincome

121

,084

7

4,31

3 1

28,7

74

105

,551

1

05,3

52

77,

655

11,

164

9,9

80

5,5

57

5,8

49

Profit/Lossonsaleofinvestment

22,

335

113

,994

4

6,76

3 2

74,5

35

12,

035

247

,150

6

,666

3

1,57

5 8

,250

2

3,42

8 Profit/Lossoninterfundtransfer/saleofinvestment

2,8

75

(4,8

76)

(31,

935)

(10,

833)

(84,

207)

(15,

583)

4,2

75

(2,1

20)

3,3

51

(2,0

91)

MiscellaneousIncome/(Expenses)

– –

– –

––

––

Unre

alis

ed G

ain/

loss

* 1

,211

,620

2

12,1

71

1,0

11,3

37

299

,560

1

,034

,091

1

94,3

19

99,

762

20,

423

39,

967

10,

691

Tota

l (A)

1

,401

,608

4

32,0

27

1,2

35,4

55

760

,051

1

,387

,920

5

83,6

97

124

,919

6

0,85

7 7

2,20

6 5

4,31

0 Fundmanagem

entexpenses

129

,790

8

5,29

7 1

44,6

94

131

,023

2

08,7

63

113

,617

1

2,58

9 1

1,00

1 8

,744

9

,511

Fundadm

inistra

tionexpenses

– –

– –

––

––

Othe

r cha

rges

# F

-5

139

,055

1

48,0

37

165

,478

2

43,8

77

619

3

17

––

8,7

24

17,

689

Tota

l (B)

2

68,8

45

233

,334

3

10,1

72

374

,900

2

09,3

82

113

,934

1

2,58

9 1

1,00

1 1

7,46

8 2

7,20

0 Ne

t Inc

ome

for t

he y

ear (

A-B)

1

,132

,763

1

98,6

93

925

,283

3

85,1

51

1,1

78,5

38

469

,763

1

12,3

29

49,

856

54,

738

27,

110

Add:Fundrevenueaccountatthebeginningoftheyear

48,

175

(150

,518

) (2

47,9

07)

(633

,059

) 4

64,2

00

(5,5

63)

56,

722

6,8

66

(8,7

49)

(35,

859)

Fund

reve

nue

acco

unt a

t the

end

of t

he y

ear

1,1

80,9

38

48,

175

677

,376

(2

47,9

07)

1,6

42,7

38

464

,200

1

69,0

51

56,

722

45,

989

(8,7

49)

*Netchangeinm

arkvalueofinvestments

#Grossofservicetax

110

Page 112: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Annexures to Schedule 16Fo

rm A

-RA(

UL)

Anne

xure

3Fu

nd R

even

ue A

ccou

nt fo

r the

yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Sch

Ti

tani

um 2

Tita

nium

3Pu

re E

quity

Valu

e M

omen

tum

Liqu

id P

lus

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar In

com

e fr

om in

vest

men

ts

Inte

rest

inco

me

5,9

39

7,0

98

3,1

05

2,4

98

899

1

57

14,

329

5,4

31

Dividendincome

2,1

84

2,3

98

566

4

95

400

9

5 2

,623

4

37

Profit/Lossonsaleofinvestment

1,9

34

8,4

23

657

2

,006

7

58

392

(1

,556

) 7

91

652

2

78

Profit/Lossoninterfundtransfer/saleofinvestment

4,6

26

(537

) 4

07

(225

) 1

3 1

4 –

1

3 –

1

MiscellaneousIncome/(Expenses)

Unr

ealis

ed G

ain/

loss

* 1

0,18

9 5

,540

4

,761

1

,116

6

,027

7

2 1

7,02

3 (2

,580

) 1

8 –

Tot

al (A

) 2

4,87

3 2

2,92

2 9

,495

5

,890

7

,199

5

73

18,

989

(1,1

82)

14,

999

5,7

10

Fundmanagem

entexpenses

3,3

32

4,0

04

1,2

37

1,0

94

472

1

27

1,2

38

274

1

,786

7

12

Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

4

,385

7

,016

1

,622

2

,347

1

,754

8

43

5,0

93

1,6

52

10,

183

6,0

75

Tot

al (B

) 7

,717

1

1,02

0 2

,859

3

,441

2

,226

9

70

6,3

31

1,9

26

11,

969

6,7

87

Net

Inco

me

for t

he y

ear (

A-B)

1

7,15

6 1

1,90

2 6

,636

2

,449

4

,973

(3

97)

12,

658

(3,1

08)

3,0

30

(1,0

77)

Add:Fundrevenueaccountatthebeginningoftheyear

(2,7

02)

(14,

604)

(2,1

63)

(4,6

12)

(396

) –

(3

,107

) –

(1

,077

) –

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 1

4,45

4 (2

,702

) 4

,473

(2

,163

) 4

,577

(3

96)

9,5

50

(3,1

07)

1,9

53

(1,0

77)

Part

icul

ars

Sch

IP

P -

Gro

wth

IP

P -

Enr

ich

IPP

- N

ouris

h In

com

e Ad

vant

age

Guar

ante

ed

Max

imis

er G

uara

ntee

d

Cur

rent

Ye

ar

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

ar In

com

e fr

om in

vest

men

ts

Inte

rest

inco

me

25,

364

22,

911

86,

539

88,

675

9,7

86

10,

109

1,0

05

8

Dividendincome

1,1

73

1,2

35

9,5

78

9,8

80

214

2

24

2

Profit/Lossonsaleofinvestment

2,8

23

7,7

25

11,

374

45,

789

(248

) 1

,315

5

6 –

Profit/Lossoninterfundtransfer/saleofinvestment

964

4

60

(8,2

35)

(494

) (1

,022

) (2

30)

MiscellaneousIncome/(Expenses)

– –

U

nrea

lised

Gai

n/lo

ss*

1,0

13

6,3

31

49,

407

31,

405

(1,1

22)

3,1

92

422

1

92

Tot

al (A

) 3

1,33

8 3

8,66

2 1

48,6

63

175

,255

7

,609

1

4,61

0 1

,483

2

02

Fundmanagem

entexpenses

4,1

45

4,1

89

22,

968

23,

711

1,4

73

1,5

54

166

8

Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

5

,149

5

,213

2

5,35

9 2

6,24

6 2

,237

2

,299

1

33

6

Tot

al (B

) 9

,294

9

,402

4

8,32

7 4

9,95

7 3

,710

3

,853

2

99

14

Net

Inco

me

for t

he y

ear (

A-B)

2

2,04

3 2

9,26

0 1

00,3

36

125

,298

3

,898

1

0,75

7 1

,184

1

88

Add:Fundrevenueaccountatthebeginningoftheyear

185

,747

1

56,4

87

904

,690

7

79,3

93

60,

614

49,

857

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 2

07,7

90

185

,747

1

,005

,027

9

04,6

90

64,

512

60,

614

1,1

84

188

*Netchangeinm

arkvalueofinvestments

#Grossofservicetax

111

Page 113: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Form

A-R

A(UL

) An

nexu

re 3

Fund

Rev

enue

Acc

ount

for t

he y

ear e

nded

31s

t Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Sch

Gr

. Fix

ed In

tere

st

Gr. G

iltGr

. Bon

dGr

. Mon

ey M

arke

tGr

. Sho

rt-T

erm

Deb

t C

urre

nt

Year

Pr

evio

us

Year

Cur

rent

Ye

ar

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 3

60,6

41

211

,927

4

,727

4

,809

2

09,1

30

167

,447

1

56,2

57

156

,459

3

6,85

3 4

8,45

2 Dividendincome

Profit/Lossonsaleofinvestment

(14,

116)

15,

778

970

1

87

(7,6

35)

9,6

51

7,9

18

6,4

48

1,8

98

2,5

50

Profit/Lossoninterfundtransfer/saleofinvestment

55,

148

14,

240

4

264

1

8,96

1 1

8,74

9 1

6 4

1 1

,075

1

0,63

1 MiscellaneousIncome/(Expenses)

Unr

ealis

ed G

ain/

loss

* (7

9,21

9) 4

4,29

8 (4

,278

) 2

,320

(3

7,71

1) 3

0,89

8 1

87

109

(8

53)

(214

)

Tot

al (A

) 3

22,4

53

286

,243

1

,422

7

,580

1

82,7

45

226

,745

1

64,3

77

163

,057

3

8,97

2 6

1,41

9 Fundmanagem

entexpenses

46,

348

26,

420

658

7

24

26,

353

20,

471

18,

872

17,

720

4,6

61

5,9

15

Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

2

06

128

2

2 2

5 1

3 1

5 2

2 1

7

Tot

al (B

) 4

6,55

4 2

6,54

8 6

58

724

2

6,37

5 2

0,49

6 1

8,88

5 1

7,73

5 4

,683

5

,932

N

et In

com

e fo

r the

yea

r (A-

B)

275

,900

2

59,6

95

764

6

,856

1

56,3

70

206

,249

1

45,4

92

145

,322

3

4,28

8 5

5,48

7 Add:Fundrevenueaccountatthebeginningoftheyear

624

,642

3

64,9

46

9,9

07

3,0

51

990

,568

7

84,3

20

346

,175

2

00,8

53

205

,834

1

50,3

47

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 9

00,5

41

624

,642

1

0,67

1 9

,907

1

,146

,938

9

90,5

68

491

,667

3

46,1

75

240

,122

2

05,8

34

Part

icul

ars

Sch

Gr

. Gro

wth

Adv

anta

geGr

. Inc

ome

Adva

ntag

eGr

. Sec

ure

Gr. S

tabl

eGr

. Gro

wth

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar In

com

e fr

om in

vest

men

ts

Inte

rest

inco

me

7,0

43

5,1

84

23,

531

1,1

26

543

,101

5

07,5

07

138

,479

1

82,2

11

100

,823

8

9,99

4 Dividendincome

2,1

95

1,7

30

25,

629

23,

523

13,

506

21,

124

18,

519

17,

489

Profit/Lossonsaleofinvestment

6,1

90

10,

053

(1,0

60)

111

7

0,55

6 1

21,4

70

25,

364

120

,341

4

2,34

6 8

7,72

7 Profit/Lossoninterfundtransfer/saleofinvestment

(1,9

43)

1,6

22

(1,6

44)

26

(30,

677)

(2,6

42)

(5,7

90)

10,

322

(8,9

94)

(2,6

98)

MiscellaneousIncome/(Expenses)

Unr

ealis

ed G

ain/

loss

* 9

,015

(8

07)

(6,3

52)

357

(3

2,89

1) 1

04,7

09

48,

791

19,

132

100

,481

1

5,65

9

Tot

al (A

) 2

2,50

1 1

7,78

2 1

4,47

5 1

,620

5

75,7

18

754

,567

2

20,3

49

353

,130

2

53,1

74

208

,171

Fundmanagem

entexpenses

2,4

92

1,9

85

3,0

65

152

8

9,42

0 8

1,77

0 2

7,58

4 3

6,51

8 2

6,65

3 2

4,62

9 Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

4

08

446

9

33

1,9

49

145

1

28

Tot

al (B

) 2

,492

1

,985

3

,065

1

52

89,

828

82,

216

28,

517

38,

467

26,

798

24,

757

Net

Inco

me

for t

he y

ear (

A-B)

2

0,01

0 1

5,79

7 1

1,41

0 1

,468

4

85,8

90

672

,351

1

91,8

33

314

,663

2

26,3

76

183

,414

Add:Fundrevenueaccountatthebeginningoftheyear

49,

839

34,

043

91,

510

90,

041

2,1

14,0

09

1,4

41,6

58

2,4

34,5

60

2,1

19,8

97

783

,551

6

00,1

37

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 6

9,84

9 4

9,83

9 1

02,9

19

91,

510

2,5

99,8

99

2,1

14,0

09

2,6

26,3

92

2,4

34,5

60

1,0

09,9

27

783

,551

*Netchangeinm

arkvalueofinvestments

#Grossofservicetax

Annexures to Schedule 16

112

Page 114: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Form

A-R

A(UL

) An

nexu

re 3

Fund

Rev

enue

Acc

ount

for t

he y

ear e

nded

31s

t Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Sch

Gr

. Fix

ed In

tere

st 2

Gr. M

oney

Mar

ket 2

Gr. B

ond

2Gr

. Sho

rt T

erm

Deb

t 2Gr

. Sta

ble

2Cu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 2

,033

2

,199

1

82

1,0

08

30,

490

38,

858

13

13

Dividendincome

2

2

Profit/Lossonsaleofinvestment

86

276

6

6

5 –

8

15

1,3

92

2

8

Profit/Lossoninterfundtransfer/saleofinvestment

(557

) 9

33

4

2,8

25

6,7

47

MiscellaneousIncome/(Expenses)

Unr

ealis

ed G

ain/

loss

* 3

76

(256

) –

(1

) –

(2

,320

) 2

,224

1

1 1

Tot

al (A

) 1

,938

3

,152

1

88

1,0

76

31,

809

49,

221

27

24

Fundmanagem

entexpenses

21

9

160

Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

1

63

141

1

5 6

1 –

1

,555

2

,209

2

2

Tot

al (B

) 1

63

162

1

5 7

0 –

1

,555

2

,369

2

2

N

et In

com

e fo

r the

yea

r (A-

B)

1,7

75

2,9

90

173

1

,006

3

0,25

4 4

6,85

2 2

5 2

2 Add:Fundrevenueaccountatthebeginningoftheyear

5,9

29

2,9

39

2,1

53

1,1

47

742

7

42

52,

982

6,1

30

5,8

63

5,8

40

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 7

,704

5

,929

2

,326

2

,153

7

42

742

8

3,23

6 5

2,98

2 5

,888

5

,863

Part

icul

ars

Sch

Gr

. Sec

ure

2Gr

. Gro

wth

2Pe

nsio

n Di

scon

tinue

d Fu

ndLi

fe D

isco

ntin

ued

Fund

Disc

ontin

ued

Po

licy

Fund

Tota

l

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Inco

me

from

inve

stm

ents

In

tere

st in

com

e 5

,890

2

72

2,3

10

282

,184

9

7,49

2 8

,093

,061

7

,467

,997

Dividendincome

274

4

9 7

54

1,6

21,4

86

1,6

98,1

49

Profit/Lossonsaleofinvestment

150

1

87

3,1

12

4,2

63

4,0

55

2,9

83,1

12

6,3

47,1

96

Profit/Lossoninterfundtransfer/saleofinvestment

(326

) –

(1

3) 6

,186

(1

,830

) 2

1 (9

4,09

3) 1

1,62

4 MiscellaneousIncome/(Expenses)

Unr

ealis

ed G

ain/

loss

* (3

,738

) –

1

59

(4,2

84)

1,3

87

6

10,2

08,7

94

3,3

85,2

69

Tot

al (A

) 2

,251

6

56

8,0

78

286

,004

1

01,5

74

22,8

12,3

60

18,9

10,2

35

Fundmanagem

entexpenses

48

18,

928

6,5

37

2,8

12,4

05

2,7

44,9

27

Fundadministra

tionexpenses

Oth

er c

harg

es#

F-5

4

85

40

320

7

9,18

8 7

9,51

7 4

,872

,709

6

,477

,099

Tot

al (B

) 4

85

40

368

9

8,11

6 8

6,05

4 7

,685

,114

9

,222

,026

N

et In

com

e fo

r the

yea

r (A-

B)

1,7

66

616

7

,710

1

87,8

88

15,

520

15,1

27,2

46

9,6

88,2

09

Add:Fundrevenueaccountatthebeginningoftheyear

26,

827

26,

827

26,

339

18,

629

27,

127

11,

607

15,3

17,1

94

5,6

28,9

84

Fun

d re

venu

e ac

coun

t at t

he e

nd o

f the

yea

r 2

8,59

3 2

6,82

7 2

6,95

4 2

6,33

9 –

2

15,0

15

27,

127

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44,4

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15,3

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*Netchangeinm

arkvalueofinvestments

#Grossofservicetax

Annexures to Schedule 16

113

Page 115: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Form

A-B

S(UL

) An

nexu

re 3

Fund

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ance

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346,

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576

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955

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4,55

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Appl

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of F

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F-2

1,63

1,37

71,

255,

124

4,17

0,67

23,

439,

105

3,97

0,62

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935,

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219

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1,97

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940

45,6

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58,5

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0Netcurrentassets

74,4

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298,

561

231,

113

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836

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63,8

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345

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394

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79,6

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178

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13,6

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21.4

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)1,

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723

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Appl

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63,3

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11Less:CurrentLiabilitiesandProvisions

F-4

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397,

107

31,2

9610

,317

148,

131

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9,42

863

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59Netcurrentassets

2,20

0,12

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616,

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92,8

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225

4,20

9(5

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)(3

94,4

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65,5

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899

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1,59

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110,

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357,

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4,71

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524,

875,

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251,

696,

852

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606,

622

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41.0

038

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31.9

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32.5

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16.2

113

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Annexures to Schedule 16

114

Page 116: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Form

A-B

S(UL

) An

nexu

re 3

Fund

Bal

ance

She

et a

s at

31s

t Mar

ch 2

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(Am

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489,

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545

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of F

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F-2

3,77

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11,8

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Annexures to Schedule 16

115

Page 117: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Form

A-B

S(UL

) An

nexu

re 3

Fund

Bal

ance

She

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s at

31s

t Mar

ch 2

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347,

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Annexures to Schedule 16

116

Page 118: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Form

A-B

S(UL

) An

nexu

re 3

Fund

Bal

ance

She

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s at

31s

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RevenueAccount

900,

541

624,

642

10,6

719,

907

1,14

6,93

899

0,56

849

1,66

734

6,17

524

0,12

220

5,83

4

Tota

l4,

868,

683

3,74

3,41

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,910

51,9

902,

332,

202

2,27

4,28

93,

640,

577

1,05

6,66

365

6,20

024

7,36

6

Appl

icat

ion

of F

unds

Investments

F-2

4,67

4,98

83,

618,

136

61,3

9350

,717

2,18

7,57

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143,

179

3,13

3,60

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627,

604

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865

Curr

ent A

sset

sF-

319

3,73

112

6,11

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516

1,27

314

4,65

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1,61

364

0,73

296

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28,7

096,

691

Less:CurrentLiabilitiesandProvisions

F-4

3583

7–

–29

503

133,

755

55,9

5311

29,

189

Netcurrentassets

193,

695

125,

274

1,51

71,

273

144,

630

131,

111

506,

976

40,6

6028

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(2,4

98)

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l

4,86

8,68

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743,

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62,9

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2,33

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22,

274,

290

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71,

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247,

367

(b)Nu

mberofU

nitsoutstanding

191,

807,

003

157,

002,

764

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32,

899,

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659,

478

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203,

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160,

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50,6

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2441

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71

NAVperU

nit(a)/(b)(

`)PlanI

25.3

823

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017

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F-1

132,

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601

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757,

717

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0(2

22,3

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913

1,58

9,58

91,

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022

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69,8

4949

,839

102,

919

91,5

102,

599,

899

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4,00

92,

626,

392

2,43

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783,

551

Tota

l20

2,82

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4,24

810

9,78

17,

357,

616

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403,

994

2,59

2,47

32,

599,

516

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3

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icat

ion

of F

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F-2

203,

739

182,

063

341,

541

51,7

497,

130,

166

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965

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7,76

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rren

t Ass

ets

F-3

2,02

06,

377

22,8

1758

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352,

387

544,

478

79,7

2858

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113,

248

36,8

11Less:CurrentLiabilitiesandProvisions

F-4

2,93

2–

110

–12

4,93

661

616

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906

30,7

92–

Netcurrentassets

(913

)6,

377

22,7

0758

,033

227,

450

543,

862

63,0

2957

,170

82,4

5736

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616

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2,59

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599,

517

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3

(b)Nu

mberofU

nitsoutstanding

10,1

90,7

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204,

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433

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8858

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46,0

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nit(a)/(b)(

`)PlanI

19.9

017

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913

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PlanII

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Annexures to Schedule 16

117

Page 119: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Form

A-B

S(UL

) An

nexu

re 3

Fund

Bal

ance

She

et a

s at

31s

t Mar

ch 2

014

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ount

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4)(6

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117

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663,

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3,77

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Annexures to Schedule 16

118

Page 120: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-1Po

licyh

olde

rs’ C

ontr

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thou

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434

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5

76,1

74

Annexures to Schedule 16

119

Page 121: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-1Po

licyh

olde

rs’ C

ontr

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Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar

Open

ing

bala

nce

189

,210

2

06,0

39

776

,105

8

81,9

01

72,8

31 8

4,77

4 –

Add:

Add

ition

s du

ring

the

year

* **

15,

977

22,

830

88,

646

118

,907

1

1,70

1 1

1,10

0 2

21,8

81

7,5

98

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 4

9,14

9 3

9,65

9 2

39,0

51

224

,703

1

9,62

8 2

3,04

3 2

(1

) –

Clos

ing

bala

nce

156

,038

1

89,2

10

625

,700

7

76,1

05

64,

904

72,

831

221

,879

7

,599

Part

icul

ars

Gr. F

ixed

Inte

rest

Gr

. Gilt

Gr. B

ond

Gr. M

oney

Mar

ket

Gr. S

hort

-Ter

m D

ebt

Curr

ent

Year

Prev

ious

Ye

ar C

urre

nt

Year

Pr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar

Open

ing

bala

nce

3,1

18,7

68

759

,613

4

2,08

3 7

1,78

9 1

,283

,722

8

30,8

32

710

,488

1

,938

,175

4

1,53

3 4

81,9

77

Add:

Add

ition

s du

ring

the

year

* **

2,0

29,4

98

2,7

62,2

26

10,

422

633

1

78,4

77

579

,166

4

,997

,640

7

23,6

19

458

,292

1

73,6

33

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 1

,180

,124

4

03,0

71

266

3

0,33

9 2

76,9

35

126

,276

2

,559

,218

1

,951

,306

8

3,74

7 6

14,0

77

Clos

ing

bala

nce

3,9

68,1

42

3,1

18,7

68

52,

239

42,

083

1,1

85,2

64

1,2

83,7

22

3,1

48,9

10

710

,488

4

16,0

78

41,

533

Part

icul

ars

Gr. G

row

th A

dvan

tage

Gr. I

ncom

e Ad

vant

age

Gr. S

ecur

eGr

. Sta

ble

Gr. G

row

th

Curr

ent Y

ear

Prev

ious

Ye

arCu

rren

t Yea

rPr

evio

us

Year

Curr

ent Y

ear

Prev

ious

Ye

arCu

rren

t Yea

rPr

evio

us

Year

Curr

ent Y

ear

Prev

ious

Ye

ar

Open

ing

bala

nce

138

,601

1

23,4

93

18,

272

(78,

780)

6,4

35,7

10

5,4

07,2

82

157

,913

1

,367

,183

1

,621

,022

1

,328

,615

Add:

Add

ition

s du

ring

the

year

* **

86,

038

55,

586

263

,862

9

7,05

3 5

,839

,433

4

,988

,731

3

18,3

78

1,0

90,6

24

429

,732

4

41,4

14

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 9

1,66

2 4

0,47

8 2

0,80

5 1

7

,517

,426

3

,960

,303

6

98,6

89

2,2

99,8

94

461

,165

1

49,0

07

Clos

ing

bala

nce

132

,977

1

38,6

01

261

,329

1

8,27

2 4

,757

,717

6

,435

,710

(2

22,3

98)

157

,913

1

,589

,589

1

,621

,022

Annexures to Schedule 16

120

Page 122: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-1Po

licyh

olde

rs’ C

ontr

ibut

ion

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Gr. F

ixed

Inte

rest

2Gr

. Mon

ey M

arke

t 2Gr

. Bon

d 2

Gr. S

hort

-Ter

m D

ebt 2

Gr. S

tabl

e 2

Curr

ent Y

ear

Prev

ious

Ye

arCu

rren

t Yea

rPr

evio

us

Year

Curr

ent Y

ear

Prev

ious

Ye

arCu

rren

t Yea

rPr

evio

us

Year

Curr

ent Y

ear

Prev

ious

Ye

ar

Open

ing

bala

nce

(1,9

58)

47,

642

(64)

24,

604

(742

) (7

42)

373

,837

3

73,1

71

(5,5

84)

(5,5

54)

Add:

Add

ition

s du

ring

the

year

* **

28,

195

5,5

76

27,

851

2,2

90

8,4

12

3

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 2

,475

5

5,17

6 –

52,

519

124

,063

7

,746

2

8 3

3

Clos

ing

bala

nce

23,

762

(1,9

58)

(64)

(64)

(742

) (7

42)

252

,064

3

73,8

37

(5,6

12)

(5,5

84)

Part

icul

ars

Gr. S

ecur

e 2

Gr. G

row

th 2

Pens

ion

Disc

ontin

ued

Fund

Life

Dis

cont

inue

d Fu

ndDi

scon

tinue

d Po

licy

Fund

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar

Open

ing

bala

nce

(26,

826)

(26,

826)

(20,

270)

97,

503

2,0

23,2

84

426

,331

Add:

Add

ition

s du

ring

the

year

* **

99,

666

337

2

11

3,9

24,7

66

2,1

71,2

43

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 1

6 –

5

77

117

,984

1

,408

,626

5

74,2

90

Clos

ing

bala

nce

72,

824

(26,

826)

(20,

510)

(20,

270)

4,5

39,4

24

2,0

23,2

84

Part

icul

ars

Tota

lCu

rren

t Ye

arPr

evio

us

Year

Open

ing

bala

nce

178

,053

,530

1

75,7

35,2

14

Add:

Add

ition

s du

ring

the

year

* **

50,

798,

583

55,

996,

618

Less

: Ded

uctio

ns d

urin

g th

e ye

ar*

** 5

2,84

9,36

8 5

3,67

8,30

2

Clos

ing

bala

nce

176

,002

,745

1

78,0

53,5

30

* Add

ition

s re

pres

ents

uni

ts c

reat

ion

& de

duct

ions

repr

esen

t uni

t can

cella

tions

** In

clud

es L

ast D

ay C

olle

ctio

ns

Annexures to Schedule 16

121

Page 123: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-2In

vest

men

ts(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Ind.

Ass

ure

Ind.

Inco

me

Adva

ntag

e In

d. P

rote

ctor

Ind.

Bui

lder

Ind.

Bal

ance

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Appr

oved

Inve

stm

ents

GovernmentB

onds

1,2

54,2

57

933

,424

1

,534

,805

1

,266

,756

9

54,6

22

724

,133

1

21,0

55

96,

593

Corp

orat

e Bo

nds

309

,973

5

18,7

63

1,1

30,3

73

900

,338

6

55,1

85

701

,332

2

36,8

74

432

,155

3

4,76

6 4

5,43

5 In

frast

ruct

ure

Bond

s 1

50,3

14

209

,739

3

88,1

25

416

,690

9

08,8

62

1,0

89,2

87

608

,276

6

52,7

92

53,

523

62,

768

Equity

393

,392

3

52,1

12

525

,559

4

75,6

78

71,

898

73,

126

PreferenceShares

336

8

12

64

Mon

ey M

arke

t 9

27,1

88

434

,395

9

35,4

98

981

,638

1

61,9

62

337

,219

6

0,00

0 3

31,0

77

24,

318

Mut

ual F

unds

Tota

l 1

,387

,475

1

,162

,897

3

,708

,253

3

,232

,090

3

,654

,542

3

,746

,706

2

,386

,143

2

,615

,835

2

81,3

06

302

,240

Ot

her I

nves

tmen

tsCo

rpor

ate

Bond

s 9

7,46

4 –

1

99,1

92

104

,346

3

8,80

6 4

0,15

8 2

9,08

1 3

0,09

4 –

In

frast

ruct

ure

Bond

s –

Equity

12,

507

16,

222

14,

378

46,

715

3,9

52

2,6

37

PreferenceShares

Mon

ey M

arke

t –

9

8,22

8 –

M

utua

l Fun

ds 1

46,4

39

92,

227

263

,227

1

02,6

69

166

,542

1

32,6

46

137

,691

2

,575

1

3,95

6 3

1,50

7 To

tal

243

,903

9

2,22

7 4

62,4

19

207

,015

3

16,0

83

189

,026

1

81,1

50

79,

384

17,

908

34,

144

GRAN

D TO

TAL

1,6

31,3

78

1,2

55,1

24

4,1

70,6

72

3,4

39,1

05

3,9

70,6

25

3,9

35,7

32

2,5

67,2

93

2,6

95,2

19

299

,214

3

36,3

84

% o

f App

rove

d In

vest

men

ts to

Tot

al85

%93

%89

%94

%92

%95

%93

%97

%94

%90

%%

of O

ther

Inve

stm

ents

to T

otal

15%

7%11

%6%

8%5%

7%3%

6%10

%

Part

icul

ars

Ind.

Enh

ance

rIn

d. C

reat

orIn

d. M

agni

fier

Ind.

Max

imis

erIn

d. M

ultip

lier

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r C

urre

nt Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Appr

oved

Inve

stm

ents

GovernmentB

onds

17,

138,

243

16,

895,

581

766

,845

5

31,6

82

7,9

20

Corp

orat

e Bo

nds

13,

923,

119

15,

843,

764

201

,400

3

06,4

79

15,

972

251

,662

In

frast

ruct

ure

Bond

s 9

,080

,941

9

,029

,856

3

81,2

98

398

,637

3

2,01

9 1

41,3

80

41,

550

Equity

17,

099,

874

16,

076,

323

1,6

34,6

16

1,3

99,0

24

7,5

92,7

52

7,7

66,3

63

18,

459,

730

20,

236,

825

2,9

51,9

38

2,7

07,6

03

PreferenceShares

16,

354

1,1

40

7,0

58

15,

870

Mon

ey M

arke

t 8

82,0

20

2,3

60,1

21

20,

000

276

,455

1

,015

,378

9

18,7

99

414

,737

7

6,27

4 1

40,1

05

279

,060

M

utua

l Fun

ds –

To

tal

58,

140,

551

60,

205,

645

3,0

05,2

99

2,9

12,2

77

8,6

71,0

99

9,0

78,2

04

18,

890,

337

20,

313,

099

3,1

33,5

93

2,9

86,6

63

Othe

r Inv

estm

ents

Corp

orat

e Bo

nds

1,3

65,3

67

1,5

98,2

62

64,

196

66,

238

29,

796

29,

474

Infra

stru

ctur

e Bo

nds

Equity

625

,787

8

10,6

53

52,

620

71,

033

365

,818

4

38,4

27

775

,010

8

86,7

79

275

,451

3

00,2

22

PreferenceShares

Mon

ey M

arke

t 1

9,64

6 –

9

8,22

8 –

M

utua

l Fun

ds 3

,235

,436

1

,720

,579

2

31,0

42

62,

159

395

,718

4

82,3

51

1,3

62,5

64

134

,305

9

3,68

4 3

00,5

41

Tota

l 5

,246

,236

4

,129

,494

4

46,0

86

199

,430

7

91,3

32

950

,252

2

,137

,574

1

,021

,084

3

69,1

35

600

,763

GR

AND

TOTA

L 6

3,38

6,78

7 6

4,33

5,13

9 3

,451

,385

3

,111

,707

9

,462

,431

1

0,02

8,45

6 2

1,02

7,91

1 2

1,33

4,18

3 3

,502

,728

3

,587

,426

%

of A

ppro

ved

Inve

stm

ents

to T

otal

92%

94%

87%

94%

92%

91%

90%

95%

89%

83%

% o

f Oth

er In

vest

men

ts to

Tot

al8%

6%13

%6%

8%9%

10%

5%11

%17

%

Annexures to Schedule 16

122

Page 124: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-2In

vest

men

ts(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Supe

r 20

Ind.

Pla

tinum

Plu

s 1

Ind.

Pla

tinum

Plu

s 2

Ind.

Pla

tinum

Plu

s 3

Ind.

Pla

tinum

Plu

s 4

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Cur

rent

Yea

r Pr

evio

us Y

ear

Appr

oved

Inve

stm

ents

GovernmentB

onds

161

,592

3

48,7

66

221

,326

4

09,7

79

237

,313

2

79,1

92

105

,138

1

60,2

93

Corp

orat

e Bo

nds

262

,121

6

7,09

2 2

79,8

38

237

,438

2

09,0

38

364

,150

7

2,50

9 –

In

frast

ruct

ure

Bond

s –

3

30,3

54

617

,698

5

38,4

73

735

,825

2

56,3

23

498

,010

2

41,2

88

234

,623

Equity

3,4

24,4

56

2,3

67,6

94

2,2

04,0

36

2,2

12,2

51

4,2

89,3

15

4,2

21,0

79

5,6

99,4

75

5,4

47,6

28

4,4

93,5

00

4,3

68,6

81

PreferenceShares

1,1

66

2,2

80

4,8

18

3,7

79

Mon

ey M

arke

t 1

27,8

56

14,

096

68,

992

69,

300

56,

181

50,

300

69,

800

99,

500

369

,066

M

utua

l Fun

ds –

To

tal

3,5

52,3

12

2,3

81,7

90

3,0

28,2

61

3,3

15,1

07

5,3

87,4

13

5,6

54,4

21

6,4

76,7

67

6,6

88,4

80

4,9

16,2

14

5,1

32,6

63

Othe

r Inv

estm

ents

Corp

orat

e Bo

nds

Infra

stru

ctur

e Bo

nds

Equity

60,

058

77,

235

117

,017

1

46,9

74

144

,581

2

73,7

60

115

,045

2

13,3

33

PreferenceShares

Mon

ey M

arke

t –

M

utua

l Fun

ds 2

21,6

13

54,

460

94,

718

166

,509

1

50,5

07

318

,886

6

,607

2

16,8

70

12,

957

176

,302

To

tal

221

,613

5

4,46

0 1

54,7

76

243

,744

2

67,5

24

465

,860

1

51,1

88

490

,630

1

28,0

02

389

,635

GR

AND

TOTA

L 3

,773

,925

2

,436

,250

3

,183

,036

3

,558

,851

5

,654

,937

6

,120

,281

6

,627

,955

7

,179

,110

5

,044

,216

5

,522

,298

%

of A

ppro

ved

Inve

stm

ents

to T

otal

94%

98%

95%

93%

95%

92%

98%

93%

97%

93%

% o

f Oth

er In

vest

men

ts to

Tot

al6%

2%5%

7%5%

8%2%

7%3%

7%

Part

icul

ars

Ind.

Pla

tinum

Adv

anta

geIn

d. P

latin

um P

rem

ier

Ind.

For

esig

ht F

PIn

d. F

ores

ight

SP

Tita

nium

1Cu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

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66,

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Mut

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231

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%

of A

ppro

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to T

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f Oth

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Annexures to Schedule 16

123

Page 125: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-2In

vest

men

ts(A

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Appr

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24,

868

28,

503

10,

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10,

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5,9

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Annexures to Schedule 16

124

Page 126: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

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vest

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Annexures to Schedule 16

125

Page 127: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-2In

vest

men

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ds 3

,122

3

11

24

135

,274

4

,880

To

tal

3,8

84

432

1

42

161

,599

4

,880

GR

AND

TOTA

L 9

9,20

5 –

6

,315

5

,957

4

,729

,782

2

,051

,488

%

of A

ppro

ved

Inve

stm

ents

to T

otal

96%

0%93

%98

%0%

0%0%

0%97

%10

0%%

of O

ther

Inve

stm

ents

to T

otal

4%0%

7%2%

0%0%

0%0%

3%0%

Annexures to Schedule 16

126

Page 128: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-2In

vest

men

ts(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Tota

lCu

rren

t Yea

rPr

evio

us Y

ear

Appr

oved

Inve

stm

ents

GovernmentB

onds

29,

860,

397

27,

713,

016

Corp

orat

e Bo

nds

22,

531,

819

24,

306,

015

Infra

stru

ctur

e Bo

nds

18,

746,

927

19,

086,

027

Equity

99,

145,

505

89,

969,

521

PreferenceShares

76,

449

Mon

ey M

arke

t 1

5,90

2,51

7 1

4,95

2,16

7 M

utua

l Fun

ds –

To

tal

186

,263

,613

1

76,0

26,7

46

Othe

r Inv

estm

ents

Corp

orat

e Bo

nds

2,1

88,2

85

2,1

56,1

97

Infra

stru

ctur

e Bo

nds

Equity

3,4

14,8

92

4,2

13,7

76

PreferenceShares

Mon

ey M

arke

t 2

45,5

69

–M

utua

l Fun

ds 8

,635

,579

5

,883

,530

To

tal

14,

484,

324

12,

253,

503

GRAN

D TO

TAL

200

,747

,938

1

88,2

80,2

50

% o

f App

rove

d In

vest

men

ts to

Tot

al93

%93

%%

of O

ther

Inve

stm

ents

to T

otal

7%7%

Annexures to Schedule 16

127

Page 129: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-3Cu

rren

t Ass

ets

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Ind.

Ass

ure

Ind.

Inco

me

Adva

ntag

e In

d. P

rote

ctor

Ind.

Bui

lder

Ind.

Bal

ance

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Accr

ued

Inte

rest

63,

103

38,

022

144

,252

8

7,01

7 1

17,8

11

115

,385

7

2,73

7 6

5,75

5 6

,406

6

,329

Ca

sh &

Ban

k Ba

lanc

e 2

4,55

9 7

,102

1

99,9

83

178

,246

9

3,42

4 3

6,36

9 8

2,62

4 1

0,37

0 8

55

1,9

43

DividendReceivable

240

2

20

352

1

48

58

34

ReceivableforS

aleofInvestments

30,

947

8,1

50

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

6

6

13

24

2

Tota

l 8

7,66

2 4

5,12

4 3

44,2

41

265

,269

2

42,4

35

151

,974

1

63,8

87

76,

273

7,3

21

8,3

05

Part

icul

ars

Ind.

Enh

ance

rIn

d. C

reat

orIn

d. M

agni

fier

Ind.

Max

imis

erIn

d. M

ultip

lier

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

1,5

91,4

05

1,5

95,3

55

50,

905

45,

524

54,

514

27,

015

2,5

37

1,3

27

Cash

& B

ank

Bala

nce

368

,693

4

01,8

47

72,

048

85,

112

45,

461

26,

333

132

,363

1

12,7

62

24,

019

15,

236

DividendReceivable

11,

196

9,9

08

1,1

63

873

5

,123

4

,876

1

1,22

8 1

2,52

8 –

1

,613

ReceivableforS

aleofInvestments

835

,692

2

96,9

68

96,

537

135

,350

4

5,83

5 Un

it Co

llect

ion

A/c#

OtherC

urrentAssets(forInvestments)

509

6

,636

4

8 –

2

75

2,9

61

673

1

27

Tota

l 2

,807

,495

2

,013

,745

1

24,1

64

131

,509

4

02,3

41

61,

185

240

,801

1

25,2

90

162

,033

6

4,01

1

Part

icul

ars

Supe

r 20

Ind.

Pla

tinum

Plu

s 1

Ind.

Pla

tinum

Plu

s 2

Ind.

Pla

tinum

Plu

s 3

Ind.

Pla

tinum

Plu

s 4

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

35,

274

49,

984

24,

554

44,

347

40,

753

45,

650

10,

351

20,

339

Cash

& B

ank

Bala

nce

114

,576

4

0,32

6 7

38

185

4

56

167

1

,283

2

,688

1

,388

5

,428

DividendReceivable

2,1

45

1,2

51

1,8

79

2,1

86

3,6

30

4,1

72

5,3

53

5,0

82

4,2

08

4,1

06

ReceivableforS

aleofInvestments

21,

967

59,

389

113

,090

1

19,5

76

211

,279

8

6,11

9 1

76,1

76

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

180

3

0 –

5

8 –

6

5 –

5

1 –

Tota

l 1

38,8

68

41,

577

37,

921

111

,744

2

8,69

8 1

61,7

76

167

,030

2

64,6

99

102

,117

2

06,0

49

Part

icul

ars

Ind.

Pla

tinum

Adv

anta

geIn

d. P

latin

um P

rem

ier

Ind.

For

esig

ht F

PIn

d. F

ores

ight

SP

Tita

nium

1Cu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Accr

ued

Inte

rest

6,9

01

9,6

56

8,5

22

32,

899

169

,324

8

8,86

4 8

87

887

1

,491

7

,465

Ca

sh &

Ban

k Ba

lanc

e 9

6,04

2 1

98,1

90

2,2

36

79,

695

573

,098

6

66,5

26

123

3

,126

1

,278

2

,357

DividendReceivable

6,1

09

4,5

31

7,3

58

5,9

51

8,2

90

3,7

96

667

4

66

293

2

72

ReceivableforS

aleofInvestments

125

,498

1

49,7

95

146

,289

1

1,70

4 –

5

,093

1

3,79

4 Un

it Co

llect

ion

A/c#

OtherC

urrentAssets(forInvestments)

82

85

94

7

7

Tota

l 1

09,1

34

212

,377

1

43,7

01

268

,340

8

97,0

95

759

,186

1

3,38

8 4

,479

8

,162

2

3,88

7

Annexures to Schedule 16

128

Page 130: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-3Cu

rren

t Ass

ets

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Tita

nium

2Ti

tani

um 3

Pure

Equ

ityVa

lue

Mom

entu

mLi

quid

Plu

sCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Accr

ued

Inte

rest

1,0

88

3,5

42

1,0

15

1,2

64

3,2

20

172

Ca

sh &

Ban

k Ba

lanc

e 8

2 2

,280

3

73

812

9

,220

2

,792

3

,621

4

,070

6

0,05

8 1

4,02

8 DividendReceivable

85

113

3

4 2

5 5

6 2

4 9

6 5

2 –

ReceivableforS

aleofInvestments

1,4

53

5,2

02

594

1

,272

1

1 5

54

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

2

1

7

Tota

l 2

,710

1

1,13

6 2

,017

3

,373

9

,276

2

,816

3

,735

4

,676

6

3,27

8 1

4,20

0

Part

icul

ars

IPP

– G

row

th

IPP

– E

nric

h IP

P –

Nou

rish

Inco

me

Adva

ntag

e Gu

aran

teed

M

axim

iser

Gua

rant

eed

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

14,

147

10,

301

30,

617

31,

558

4,2

20

3,3

12

4,1

45

Cash

& B

ank

Bala

nce

693

1

,032

3

0,48

4 8

0,31

8 3

63

502

7

8,98

2 –

2

,744

DividendReceivable

53

36

344

3

19

8

7

2

ReceivableforS

aleofInvestments

4,2

77

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

2

18

Tota

l 1

9,17

2 1

1,36

9 6

1,46

3 1

12,1

95

4,5

91

3,8

21

83,

127

2,7

46

Part

icul

ars

Gr. F

ixed

Inte

rest

Gr

. Gilt

Gr. B

ond

Gr. M

oney

Mar

ket

Gr. S

hort

Ter

m D

ebt

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

175

,089

8

0,09

4 1

,499

1

,163

9

8,65

4 5

2,49

5 3

5,34

0 4

,892

2

1,20

9 4

,963

Ca

sh &

Ban

k Ba

lanc

e 1

8,64

2 4

6,01

7 1

7 1

10

46,

005

79,

118

605

,392

9

1,72

1 7

,500

1

,728

DividendReceivable

ReceivableforS

aleofInvestments

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

Tota

l 1

93,7

31

126

,111

1

,516

1

,273

1

44,6

59

131

,613

6

40,7

32

96,

613

28,

709

6,6

91

Part

icul

ars

Gr. G

row

th A

dvan

tage

Gr. I

ncom

e Ad

vant

age

Gr. S

ecur

eGr

. Sta

ble

Gr. G

row

thCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Accr

ued

Inte

rest

1,4

91

2,0

99

7,5

95

777

2

05,4

23

185

,064

4

7,17

9 4

6,05

6 3

3,51

2 3

1,29

7 Ca

sh &

Ban

k Ba

lanc

e 1

19

4,2

17

15,

222

57,

256

34,

313

358

,529

2

8,23

7 1

1,51

1 7

5,37

8 4

,834

DividendReceivable

65

61

828

8

85

465

5

09

675

6

80

ReceivableforS

aleofInvestments

341

1

11,7

73

3,8

19

3,6

44

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

4

– –

5

0 –

2

8 –

3

9 –

Tota

l 2

,020

6

,377

2

2,81

7 5

8,03

3 3

52,3

87

544

,478

7

9,72

8 5

8,07

6 1

13,2

48

36,

811

Annexures to Schedule 16

129

Page 131: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-3Cu

rren

t Ass

ets

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Gr. F

ixed

Inte

rest

2Gr

. Mon

ey M

arke

t 2Gr

. Bon

d 2

Gr. S

hort

-Ter

m D

ebt 2

Gr. S

tabl

e 2

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

827

7

4 1

1

4,46

4 9

,962

1

1

Ca

sh &

Ban

k Ba

lanc

e 4

2 4

3 3

6 5

8 –

4

26

37

17

21

DividendReceivable

ReceivableforS

aleofInvestments

2

Unit

Colle

ctio

n A/

c# –

OtherC

urrentAssets(forInvestments)

Tota

l 8

69

117

3

7 5

8 –

1

4,89

0 9

,999

2

0 2

2

Part

icul

ars

Gr. S

ecur

e 2

Gr. G

row

th 2

Pens

ion

Disc

ontin

ued

Fund

Life

Dis

cont

inue

d Fu

ndDi

scon

tinue

d Po

licy

Fund

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

r

Accr

ued

Inte

rest

2,4

72

62

72

48,

622

4,2

60

Cash

& B

ank

Bala

nce

6

94

38

23,

258

18,

561

DividendReceivable

11

2

2

ReceivableforS

aleofInvestments

108

7

Un

it Co

llect

ion

A/c#

OtherC

urrentAssets(forInvestments)

1

Tota

l 2

,598

1

65

112

7

1,88

0 2

2,82

1

Part

icul

ars

Tota

lCu

rren

t Yea

rPr

evio

us Y

ear

Accr

ued

Inte

rest

3,1

53,6

19

2,7

55,2

36

Cash

& B

ank

Bala

nce

2,8

76,5

68

2,6

53,6

42

DividendReceivable

72,

015

64,

726

ReceivableforS

aleofInvestments

2,0

45,9

19

776

,386

Un

it Co

llect

ion

A/c#

OtherC

urrentAssets(forInvestments)

2,4

87

9,6

03

Tota

l 8

,150

,608

6

,259

,593

#representsinterfu

ndreceivablesorpayables

Annexures to Schedule 16

130

Page 132: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-4Cu

rren

t Lia

bilit

ies

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Ind.

Ass

ure

Ind.

Inco

me

Adva

ntag

e In

d. P

rote

ctor

Ind.

Bui

lder

Ind.

Bal

ance

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

PayableforP

urchaseofInvestments

36,

396

5,6

52

396

Ot

her C

urre

nt L

iabi

litie

s 1

3,26

0 5

,940

4

5,68

0 3

4,15

5 2

2,20

3 1

3,31

3 1

8,57

1 1

2,41

4 1

,580

6

40

UnitPayablea/c#

Tota

l 1

3,26

0 5

,940

4

5,68

0 3

4,15

5 5

8,59

9 1

3,31

3 2

4,22

3 1

2,41

4 1

,976

6

40

Part

icul

ars

Ind.

Enh

ance

rIn

d. C

reat

orIn

d. M

agni

fier

Ind.

Max

imis

erIn

d. M

ultip

lier

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

r Pr

evio

us Y

ear

Curr

ent Y

ear

Prev

ious

Yea

rCu

rren

t Yea

rPr

evio

us Y

ear

Curr

ent Y

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69

Annexures to Schedule 16

131

Page 133: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-4Cu

rren

t Lia

bilit

ies

(Am

ount

s in

thou

sand

s of

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an R

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nium

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2 –

Annexures to Schedule 16

132

Page 134: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Ba

lanc

e Sh

eet

Anne

xure

3Sc

hedu

le: F

-4Cu

rren

t Lia

bilit

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ount

s in

thou

sand

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#Representsinterfundreceivablesorpayables,ifany

Annexures to Schedule 16

133

Page 135: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

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mou

nts

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Annexures to Schedule 16

134

Page 136: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

Othe

r Exp

ense

s*(A

mou

nts

in th

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nds

of In

dian

Rup

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Annexures to Schedule 16

135

Page 137: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

Othe

r Exp

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s*(A

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LatePaymentcharge

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ontin

uanc

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arge

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stat

emen

t cha

rge

3

4

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566

5

73

2,7

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2,8

87

246

2

53

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1

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cella

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l 5

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5

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2

5,35

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6,24

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,237

2

,299

1

33

6

Annexures to Schedule 16

136

Page 138: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

Othe

r Exp

ense

s*(A

mou

nts

in th

ousa

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dian

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icul

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36

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1

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16

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145

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28

Annexures to Schedule 16

137

Page 139: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

Othe

r Exp

ense

s*(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

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icul

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145

1

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60

1,3

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432

3

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2,6

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7

Annexures to Schedule 16

138

Page 140: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Fun

d Re

venu

e Ac

coun

t An

nexu

re 3

Sche

dule

: F-5

Othe

r Exp

ense

s*(A

mou

nts

in th

ousa

nds

of In

dian

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ees)

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icul

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1,7

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a s

epar

ate

line

item

.

Annexures to Schedule 16

139

Page 141: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Anne

xure

to R

even

ue A

ccou

nt–B

reak

up

of U

nit L

inke

d Bu

sine

ss (U

L)

Anne

xure

3Re

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e Ac

coun

t for

fina

ncia

l yea

r end

ed 3

1st M

arch

201

4Po

licyh

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ccou

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ical

Acc

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)(A

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nts

in th

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of In

dian

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icul

ars

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dule

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

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p Li

feGr

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ion

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th In

divi

dual

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Unit

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l

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(2)

(3)=(1)+(2)

(4)

(5)

(6)=(4)+(5)

(7)

(8)

(9)=(7)+(8)

(10)

(11)

(12)=(10)+

(1

1)(1

3)(1

4)(15)=(13)

+(1

4)(16)=(3)+(6)+(9)+

(12)

+(15

)

Prem

ium

s ea

rned

– n

et

(a)Prem

ium

3,0

41,1

49

22,

566,

809

25,

607,

958

554

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8

68,8

31

1,4

22,8

52

3,8

31,6

11

3,8

31,6

11

508

,064

5

08,0

64

53,

316

80,

696

134

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3

1,50

4,49

7

(b)

Rein

sura

nce

cede

d (7

57,2

43)

(–)

757,

243

(314

)–

(314

) (1

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) –

(1

,968

) –

(4,1

06)

–(4

,106

)(7

63,6

31)

Inco

me

from

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stm

ents

(a)Interest,Dividend&Rent-Gross

329

,253

7

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7

,871

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3

4,94

7 4

84,9

38

519

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1

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1

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3

66,0

83

366

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7

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7

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1

5,59

2 1

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6,72

1

(b)Profitonsale/redem

ptionof

investments

20,

615

9,0

85,5

74

9,1

06,1

89

2,1

88

740

,575

7

42,7

63

527

,728

5

27,7

28

147

,076

1

47,0

76

499

1

8,52

2 1

9,02

2 1

0,54

2,77

8

(c)

Loss

on

sale

/red

empt

ion

of

investments

(8,5

97)

(6,5

11,9

98)

(6,5

20,5

95)

(913

) (5

90,3

61)

(591

,273

) –

(4

01,2

24)

(401

,224

) –

(1

11,8

20)

(111

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) (2

08)

(15,

054)

(15,

262)

(7,6

40,1

74)

(d)

Unre

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ed g

ain/

(loss

) –

9

,630

,254

9

,630

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5

63,6

24

563

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(2

,215

) (2

,215

) –

(6

17)

(617

) –

1

7,74

7 1

7,74

7 1

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8,79

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1 6

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2

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2

46,9

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(246

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2

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5

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the

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77,

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18,

591

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1

91,2

87

191

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9

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3

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73

2,6

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828

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Tota

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3,6

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253

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2

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126

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1

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3,0

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497

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10,

859

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859)

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05)

9,9

73,1

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8,6

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) (3

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3

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1 1

1,51

1,76

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35,

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176

38,

409,

304

273

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1

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2

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5

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24,6

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4 4

6,51

3,46

3

SURP

LUS/

(DEF

ICIT

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3,0

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3,0

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366

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3

66,5

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60,

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60,

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3,5

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99

APPR

OPRI

ATIO

NSInsurancereserveatthebeginning

of th

e ye

ar –

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to S

hare

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4

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4

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5

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32

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6

8,90

2 (0

) 6

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1 (1

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0) –

(1

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0) 7

1,86

4 –

7

1,86

4 4

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,140

Fundsavailableforfuture

appr

opria

tions

(1,1

92,6

56)

(1,1

92,6

56)

(158

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) –

(1

58,0

91)

(11,

294)

(11,

294)

(1,3

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15

3,0

72,0

15

366

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3

66,5

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68,

902

(0)

68,

901

(15,

930)

(15,

930)

60,

571

60,

571

3,5

52,0

99

Annexures to Schedule 16

140

Page 142: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Anne

xure

to R

even

ue A

ccou

nt–B

reak

up

of U

nit L

inke

d Bu

sine

ss (U

L)

Anne

xure

3Re

venu

e Ac

coun

t for

fina

ncia

l yea

r end

ed 3

1st M

arch

201

3Po

licyh

olde

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ccou

nt (T

echn

ical

Acc

ount

)(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Sche

dule

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vidu

al L

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n In

divi

dual

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p Li

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th In

divi

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(1)

(2)

(3)=(1)+(2)

(4)

(5)

(6)=(4)+(5)

(7)

(8)

(9)=(7)+(8)

(10)

(11)

(12)=

(10)

+(1

1)

(13)

(14)

(15)=(13)

+(1

4)

(16)=(3)+(6)+

(9)+

(12)

+(1

5)

Prem

ium

s ea

rned

– n

et

(a)Prem

ium

4,84

5,79

626

,213

,558

31,0

59,3

5467

3,43

91,

587,

485

2,26

0,92

4–

3,02

2,15

83,

022,

158

32,6

9335

0,48

638

3,17

916

1,91

4–

161,

914

36,5

04,3

50

(b)

Rein

sura

nce

cede

d(7

69,7

04)

– (7

69,7

04)

(337

)–

(337

)–

– –

– –

– (5

,529

)–

(5,5

29)

(775

,570

)

Inco

me

from

Inve

stm

ents

(a)Interest,Dividend&Rent–Gross

398,

312

7,16

0,24

97,

558,

561

48,0

7151

6,32

556

4,39

62,

001

1,11

5,38

41,

117,

386

1,22

736

8,74

236

9,96

95,

595

5,45

511

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9,25

1,39

2

(b)Profitonsale/redem

ptionofinvestments

9,29

09,

622,

258

9,63

1,54

81,

121

759,

776

760,

898

4747

5,96

847

6,01

529

157,

353

157,

382

131

13,7

6513

,895

10,8

82,3

56

(c)Lossonsale/redem

ptionofinvestments

(2,0

09)

(4,1

26,3

24)

(4,1

28,3

33)

(243

)(3

48,1

95)

(348

,437

)(1

0)(1

42,5

90)

(142

,600

)(6

)(4

7,14

0)(4

7,14

6)(2

8)(6

,053

)(6

,082

)(4

,625

,452

)

(d)

Unre

alis

ed g

ain/

(loss

)–

3,00

9,45

23,

009,

452

– 15

9,97

015

9,97

0–

155,

129

155,

129

– 61

,333

61,3

33–

(615

)(6

15)

3,32

3,93

7

(e)

Gain

Los

s on

Am

ortis

atio

n(7

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)–

(7,9

50)

(959

)–

(959

)(4

0)–

(40)

(24)

– (2

4)(1

12)

– (1

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(9,0

61)

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r inc

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eUL

17,

994,

251

(7,9

94,2

51)

– 23

8,20

5(2

38,2

05)

– 19

2,29

6(1

92,2

96)

– 3,

549

(3,5

49)

– 48

,495

(48,

495)

– –

(b)

Cont

ribut

ion

from

the

Shar

ehol

ders

' a/c

– –

– –

– –

––

– –

– –

37,2

84–

37,2

8437

,284

(c)

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r Inc

ome

230,

683

– 23

0,68

314

,516

– 14

,516

19,4

04–

19,4

042,

460

– 2,

460

1,04

0–

1,04

026

5,64

2

Tota

l (A)

12,6

98,6

6833

,884

,942

46,5

83,6

1097

3,81

32,

437,

157

3,41

0,97

121

3,69

84,

433,

753

4,64

7,45

139

,927

887,

226

927,

152

248,

788

(35,

943)

212,

845

54,8

54,8

77

Com

mis

sion

1,27

1,10

6–

1,27

1,10

642

,588

– 42

,588

(0)

– (0

)87

4–

874

17,9

71–

17,9

711,

331,

665

OperatingExpensesrelatedtoInsurance

Busi

ness

4,91

6,67

7–

4,91

6,67

727

7,00

6–

277,

006

75,2

10–

75,2

10(2

,951

)–

(2,9

51)

32,8

55–

32,8

555,

301,

747

ProvisionforTaxation

– –

– –

– –

– –

– –

– –

– –

– –

Tota

l (B)

6,18

7,78

3–

6,18

7,78

331

9,59

4–

319,

594

75,2

10–

75,2

10(2

,077

)–

(2,0

77)

50,8

26–

50,8

266,

633,

412

BenefitsPaid(N

et)

UL2

939,

625

29,5

75,8

8130

,515

,506

6,10

92,

619,

972

2,62

6,08

1–

1,99

6,64

51,

996,

645

–33

7,69

433

7,69

420

115

,447

15,6

4835

,153

,880

Interim

BonusPaid

– –

– –

– –

– –

– –

– –

– –

– –

Changeinvaluationofliabilityinrespectof

life

polic

ies

– –

– –

– –

– –

– –

– –

– –

– –

TransfertoNon–LinkedReserves

4,39

8,92

7(4

,398

,927

)–

354,

565

(354

,565

)–

– –

– –

– –

(48,

336)

48,3

36–

ChangeinValuationLiability

(2,1

50,3

40)

8,70

7,98

76,

557,

647

(261

,798

)17

1,75

0(9

0,04

8)3,

671

2,51

6,87

72,

520,

548

1,74

454

9,53

155

1,27

653

,128

60,3

7911

3,50

79,

101,

654

Tota

l (C)

3,18

8,21

233

,884

,942

37,0

73,1

5398

,876

2,43

7,15

72,

536,

033

3,67

14,

513,

522

4,51

7,19

31,

744

887,

226

888,

970

4,99

312

4,16

312

9,15

544

,255

,534

SURP

LUS/

(DEF

ICIT

) (D)

=(A

)–(B

)–(C

)3,

322,

673

– 3,

322,

673

555,

344

– 55

5,34

413

4,81

7(7

9,76

8)55

,049

40,2

59–

40,2

5919

2,97

0(1

60,1

06)

32,8

643,

965,

930

APPR

OPRI

ATIO

NSInsurancereserveatthebeginningofthe

year

– –

– –

– –

– –

– –

– –

– –

– –

Tran

sfer

to S

hare

hold

ers'

a/c

5,

136,

007

– 5,

136,

007

638,

055

– 63

8,05

513

4,81

7(7

9,76

8)54

,946

40,2

59–

40,2

59–

– –

5,82

9,00

7

Fundsavailableforfutureappropriations

(1,8

13,3

33)

– (1

,813

,333

)(8

2,71

1)–

(82,

711)

– –

––

– –

32,8

52–

32,8

52(1

,863

,192

)

Tota

l (D)

3,32

2,67

3–

3,32

2,67

355

5,34

4–

555,

344

134,

817

(79,

768)

54

,946

40,2

59–

40,2

5932

,852

– 32

,852

3,96

5,81

5

Annexures to Schedule 16

141

Page 143: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Sche

dule

s to

Ann

exur

e to

Rev

enue

Acc

ount

(UL)

form

ing

part

of F

inan

cial

Sta

tem

ents

An

nexu

re 3

Sche

dule

-UL1

Link

ed In

com

e (R

ecov

ered

from

link

ed fu

nds)

* fo

r the

Yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th in

divi

dual

Tota

lFu

nd A

dmin

istra

tion

char

ges

NA

NA

NA

NA

NA

NA

Fund

Man

agem

ent c

harg

e 2

,422

,008

1

41,4

06

246

,105

2

,885

2

,812

,405

PolicyAdministra

tioncharge

1,7

30,1

26

111

,757

7

97

2,7

71

3,3

60

1,8

48,8

11

Surr

ende

r cha

rge

186

,365

3

7,40

6 –

2

23,7

71

Switc

hing

cha

rge

352

0

3

52

Mortalitycharge/RiderPremiumCharge

2,2

19,2

06

1,1

91

44,

577

2,2

64,9

73

Mis

cella

neou

s ch

arge

11,

129

248

1

57

11,

534

Disc

ontin

uanc

e ch

arge

s 6

0,63

0 2

,425

6

3,05

5 TO

TAL

(UL-

1) 6

,629

,816

2

94,4

34

246

,903

2

,771

5

0,97

9 7

,224

,902

*

(net

of s

ervi

ce ta

x, if

any

)

Note

: Pre

viou

s Ye

ar fi

gure

s sh

ould

als

o be

giv

en in

the

sam

e fo

rmat

Sche

dule

-UL2

Bene

fits

Paid

[Net

] for

the

finan

cial

yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th In

divi

dual

Tota

l Uni

t Li

nked

Non-

Unit

Unit

Link

ed L

ifeNo

n-Un

itUn

itLi

nked

Pe

nsio

nNo

n-Un

itUn

itLi

nked

Gr

oup

Non-

Unit

Unit

Link

ed

Grou

pNo

n-Un

itUn

itLi

nked

He

alth

(1)

(2)

(3)=(1)+(2)

(4)

(5)(6)=(4)+(5)

(7)

(8)(9)=(7)+(8)

(10)

(11)

(12)=(10)

+

(11)

(13)

(14)

(15)=(13)

+

(14)

(16)=(3)+(6)+(9)

+(1

2)+

(15)

1In

sura

nce

Clai

ms

(a)

Clai

ms

by D

eath

1,3

32,8

33

164

,701

1

,497

,534

3

0,96

4 1

9,26

3 5

0,22

7 –

3

,485

3

,485

1

16

105

2

21

1,5

51,4

67

(b)

Clai

ms

by M

atur

ity –

5

22,7

03

522

,703

6

9,70

9 6

9,70

9 –

5

92,4

12

(c)Annuities/Pension

paym

ent

––

––

(d)Otherbenefits

Surr

ende

r 2

0,83

7 2

8,11

6,31

4 2

8,13

7,15

1 2

00

2,45

3,26

1 2

,453

,461

1,8

51,9

04

1,85

1,90

4 –

86

0,78

0 8

60,7

80

2,5

56

2,5

56

33,

305,

852

–Survival

Sub-

Tota

l (A)

1,3

53,6

70

28,8

03,7

18

30,1

57,3

88

31,

164

2,5

42,2

33

2,57

3,39

7 –

1,8

51,9

04

1,85

1,90

4 –

86

4,26

4 8

64,2

64

116

2

,661

2

,777

3

5,44

9,73

0 2

Amou

nt C

eded

in re

insu

ranc

e(a

) Cl

aim

s by

Dea

th 4

46,4

16

– 4

46,4

16

– –

4

46,4

16

(b)

Clai

ms

by M

atur

ity–

– –

– –

(c)Annuities/Pension

paym

ent

––

––

(d)Otherbenefits

– Su

rren

der

– –

– –

1

,614

1

,614

1

,614

–Survival

––

––

Sub-

Tota

l (B)

446

,416

4

46,4

16

1,6

14

1,6

14

448

,030

TO

TAL

(A) –

(B)

907

,254

28

,803

,718

29

,710

,972

3

1,16

4 2

,542

,233

2,

573,

397

– 1

,851

,904

1,

851,

904

864,

264

864

,264

(1

,498

) 2

,661

1

,163

3

5,00

1,70

0 Be

nefit

s pa

id to

cla

iman

ts:

In In

dia

907

,254

28

,803

,718

29

,710

,972

3

1,16

4 2

,542

,233

2,

573,

397

– 1

,851

,904

1,

851,

904

864,

264

864

,264

(1

,498

) 2

,661

1

,163

3

5,00

1,70

0 Ou

tsid

e In

dia

TOTA

L (U

L2)

907

,254

28

,803

,718

29

,710

,972

3

1,16

4 2

,542

,233

2,

573,

397

– 1

,851

,904

1,

851,

904

864,

264

864

,264

(1

,498

) 2

,661

1

,163

3

5,00

1,70

0

Note

: Pre

viou

s Ye

ar fi

gure

s sh

ould

als

o be

giv

en in

the

sam

e fo

rmat

Annexures to Schedule 16

142

Page 144: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Sche

dule

s to

Ann

exur

e to

Rev

enue

Acc

ount

(UL)

form

ing

part

of F

inan

cial

Sta

tem

ents

An

nexu

re 3

Sche

dule

-UL1

Link

ed In

com

e (R

ecov

ered

from

link

ed fu

nds)

* fo

r the

Yea

r end

ed 3

1st M

arch

201

3(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th In

divi

dual

Tota

lFu

nd A

dmin

istra

tion

char

ges

NA

NA

NA

NA

NA

NA

Fund

Man

agem

ent c

harg

e 2

,221

,153

2

6,12

1 1

90,7

70

2,4

38,0

45

PolicyAdministra

tioncharge

3,1

66,7

58

208

,877

1

,526

3

,549

3

,150

3

,383

,860

Su

rren

der c

harg

e 5

9,56

0 3

,109

6

2,66

9 Sw

itchi

ng c

harg

e 3

43

– –

– –

343

Mortalitycharge/RiderPremiumCharge

2,4

56,6

88

(901

) –

4

5,12

9 2

,500

,917

M

isce

llane

ous

char

ge 2

0,93

3 9

98

– 2

15

22,

147

Disc

ontin

uanc

e ch

arge

s 6

8,81

5 –

– –

– 68

,815

TO

TAL

(UL-

1) 7

,994

,251

2

38,2

05

192

,296

3

,549

4

8,49

5 8

,476

,796

*

(net

of s

ervi

ce ta

x, if

any

)

Sche

dule

-UL2

Bene

fits

Paid

[Net

] for

the

finan

cial

yea

r end

ed 3

1st M

arch

201

3(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th In

divi

dual

Tota

l Un

it Li

nked

Non-

Unit

Unit

Link

ed L

ifeNo

n-Un

itUn

itLi

nked

Pe

nsio

nNo

n-Un

itUn

itLi

nked

Gr

oup

Non-

Unit

Unit

Link

ed

Grou

pNo

n-Un

itUn

itLi

nked

He

alth

(1)

(2)

(3)=(1)+(2)

(4)

(5)(6)=(4)+(5)

(7)

(8)(9)=(7)+(8)

(10)

(11)

(12)=(10)

+

(11)

(13)

(14)

(15)=(13)

+

(14)

(16)=(3)+(6)+(9)

+(1

2)+

(15)

1In

sura

nce

Clai

ms

(a)

Clai

ms

by D

eath

1,43

8,38

787

,585

1,52

5,97

26,

109

45,1

0851

,217

– –

– –

2,28

42,

284

280

195

475

1,57

9,94

8(b

) Cl

aim

s by

Mat

urity

– 24

5,44

324

5,44

3–

5,78

15,

781

– –

– –

– –

– –

– 25

1,22

4(c)Annuities/Pension

pa

ymen

t–

– –

– –

– –

– –

– –

– –

– –

(d)Otherbenefits

Surr

ende

r17

,056

29,2

42,8

5329

,259

,909

– 2,

569,

083

2,56

9,08

3–

1,99

6,64

51,

996,

645

– 33

5,41

033

5,41

0–

15,2

5215

,252

34,1

76,2

99

–Survival

– –

– –

– –

– –

– –

– –

– –

– –

Sub-

Tota

l (A)

1,45

5,44

329

,575

,881

31,0

31,3

246,

109

2,61

9,97

22,

626,

081

–1,

996,

645

1,99

6,64

5–

337,

694

337,

694

280

15,4

4715

,727

36,0

07,4

712

Amou

nt C

eded

in re

insu

ranc

e(a

) Cl

aim

s by

Dea

th51

5,15

3–

515,

153

– –

– –

– –

– –

– –

– –

515,

153

(b)

Clai

ms

by M

atur

ity–

– –

– –

– –

– –

– –

– –

– –

– (c)Annuities/Pensionpayment

– –

– –

– –

– –

– –

– –

– –

– –

(d)Otherbenefits

– –

– –

– –

– –

– –

– –

– –

– –

Surr

ende

r66

5–

665

––

––

––

––

–79

–79

744

–Survival

––

––

––

––

––

––

– –

––

Sub-

Tota

l (B)

515,

818

–51

5,81

8–

––

––

––

––

79–

7951

5,89

7TO

TAL

(A) –

(B)

939,

625

29,5

75,8

8130

,515

,506

6,10

92,

619,

972

2,62

6,08

1–

1,99

6,64

51,

996,

748

–33

7,69

433

7,69

420

115

,447

15,6

4835

,491

,574

Bene

fits

paid

to c

laim

ants

:In

Indi

a93

9,62

529

,575

,881

30,5

15,5

066,

109

2,61

9,97

22,

626,

081

–1,

996,

645

1,99

6,74

8–

337,

694

337,

694

201

15,4

4715

,648

35,4

91,5

74Ou

tsid

e In

dia

TOTA

L (U

L2)

939,

625

29,5

75,8

8130

,515

,506

6,10

92,

619,

972

2,62

6,08

1–

1,99

6,64

51,

996,

748

–33

7,69

433

7,69

420

115

,447

15,6

4835

,491

,574

Note

: Pre

viou

s Ye

ar fi

gure

s sh

ould

als

o be

giv

en in

the

sam

e fo

rmat

Sche

dule

s to

Ann

exur

e to

Rev

enue

Acc

ount

(UL)

form

ing

part

of F

inan

cial

Sta

tem

ents

An

nexu

re 3

Sche

dule

-UL1

Link

ed In

com

e (R

ecov

ered

from

link

ed fu

nds)

* fo

r the

Yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th in

divi

dual

Tota

lFu

nd A

dmin

istra

tion

char

ges

NA

NA

NA

NA

NA

NA

Fund

Man

agem

ent c

harg

e 2

,422

,008

1

41,4

06

246

,105

2

,885

2

,812

,405

PolicyAdministra

tioncharge

1,7

30,1

26

111

,757

7

97

2,7

71

3,3

60

1,8

48,8

11

Surr

ende

r cha

rge

186

,365

3

7,40

6 –

2

23,7

71

Switc

hing

cha

rge

352

0

3

52

Mortalitycharge/RiderPremiumCharge

2,2

19,2

06

1,1

91

44,

577

2,2

64,9

73

Mis

cella

neou

s ch

arge

11,

129

248

1

57

11,

534

Disc

ontin

uanc

e ch

arge

s 6

0,63

0 2

,425

6

3,05

5 TO

TAL

(UL-

1) 6

,629

,816

2

94,4

34

246

,903

2

,771

5

0,97

9 7

,224

,902

*

(net

of s

ervi

ce ta

x, if

any

)

Note

: Pre

viou

s Ye

ar fi

gure

s sh

ould

als

o be

giv

en in

the

sam

e fo

rmat

Sche

dule

-UL2

Bene

fits

Paid

[Net

] for

the

finan

cial

yea

r end

ed 3

1st M

arch

201

4(A

mou

nts

in th

ousa

nds

of In

dian

Rup

ees)

Sr.

No.

Part

icul

ars

Indi

vidu

al L

ifePe

nsio

n In

divi

dual

Grou

p Li

feGr

oup

Pens

ion

Heal

th In

divi

dual

Tota

l Uni

t Li

nked

Non-

Unit

Unit

Link

ed L

ifeNo

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Annexures to Schedule 16

143

Page 145: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Disclosure for ULIP Business

1. Performance of the Fund (Absolute Growth %) (Appendix 1)

2. Investment Management

• ActivitiesOutsourced:Nil

• FeesPaidforvariousactivitieschargedtoPolicyholdersaccountforthePeriodended31stMarch2014:Nil(PreviousYear:Nil)

3. Related Party Transactions (Appendix 1A)

4. CompanywisedetailsofInvestmentsheldinPromotersGroupalongwithitsPercentagetofundsundermanagement.ThisinformationistobegivenfundwiseandtotalfundunderULIP.(Appendix 2)

5. IndustrywisedisclosuresofInvestments(amountinthousands)(Appendix 3)

6. Unclaimed redemption of units `20,826thousands(Previousyear`642 thousand)

7. NAV:Highest,Lowest&ClosingattheendoftheYear(Appendix 4)

8. ExpenseschargedtoFund(%)(Appendix 5)

9. RatioofGrossIncome(includingunrealisedgains)toAverageDailyNetAssets(Appendix 6)

10. Asat31stMarch2014,therearenodoubtfuldebtsonassetsoftherespectivefunds.

11. Fundwisedisclosureofappreciationand/ordepreciationinvalueofInvestments(Appendix 7)

Annexures to Schedule 16

144

Page 146: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

Appendix 1 to Annexure 3APerformance of ULIP funds (Absolute Growth – %)Returns as on 31st March 2014

INDIVIDUAL LIFE

Fund Name Year of Inception FY 2013-14 FY 2012-13 FY 2011-12 Since Inception

Ind. Assure Fund 12-Sep-05 8.90% 10.19% 9.11% 114.26%Ind.IncomeAdvFund 22-Aug-08 4.41% 11.15% 8.01% 74.88%Ind.Protector 22-Mar-01 5.49% 10.13% 5.27% 177.44%Ind. Builder 22-Mar-01 7.45% 10.70% 3.66% 247.21%Ind. Balancer 18-Jul-05 8.00% 10.25% 3.57% 122.79%Ind. Enhancer 22-Mar-01 7.73% 9.74% 1.50% 309.96%Ind. Creator 23-Feb-04 10.82% 8.83% -1.49% 219.57%Ind.Magnifier 12-Aug-04 15.77% 8.07% -9.04% 225.60%Ind.Maximiser 12-Jun-07 15.82% 6.58% -13.06% 62.09%Ind. Multiplier 30-Oct-07 21.62% 3.67% -4.06% 43.08%Super 20 6-Jul-09 19.20% 8.87% -7.08% 68.53%Ind.PlatinumPlus1 17-Mar-08 12.53% 7.88% -9.86% 34.32%Ind.PlatinumPlus2 8-Sep-08 13.27% 7.34% -9.73% 91.55%Ind.PlatinumPlus3 15-May-09 13.47% 8.11% -9.22% 47.51%Ind.PlatinumPlus4 15-Sep-09 13.43% 7.72% -9.85% 31.29%Ind.PlatinumPremier 15-Feb-10 14.00% 8.10% -9.16% 30.50%Ind.PlatinumAdvantage 20-Sep-10 16.92% 8.13% -6.83% 14.02%Ind.ForesightFP 25-Feb-11 10.28% 8.40% -7.48% 15.90%Ind.ForesightSP 25-Feb-11 16.93% 8.58% -6.86% 23.81%Titanium 1 16-Dec-09 13.42% 8.16% -7.21% 30.67%Titanium 2 16-Mar-10 13.33% 7.89% -5.92% 28.05%Titanium 3 16-Jun-10 12.05% 7.57% -3.71% 17.25%Ind.LiquidPlus 9-Mar-12 8.53% 7.82% 0.07% 17.09%Ind.PureEquity 9-Mar-12 21.08% 10.35% 0.43% 34.19%Ind.ValueMomentum 9-Mar-12 13.05% 5.00% 0.43% 19.21%IPP–Nourish 12-Mar-03 4.91% 9.94% 5.15% 130.00%IPP–Growth 18-Mar-03 7.69% 9.79% 3.72% 184.98%IPP–Enrich 12-Mar-03 8.00% 9.43% 1.21% 229.57%DiscontinuedPolicyFund 1-Sep-10 8.16% 8.64% 8.48% 28.77%IncomeAdvantageGuaranteedFund 1-Jan-14 2.27% NA NA 2.27%MaximiserGuaranteedFund 1-Jan-14 6.20% NA NA 6.20%LinkedDiscontinuedPolicyFund 1-Jan-14 0.00% NA NA 0.00%PensionDiscontinuedPolicyFund 1-Jan-14 0.00% NA NA 0.00%

GROUP LIFE

Fund Name Year Of Inception FY 2013-14 FY 2012-13 FY 2011-12 Since Inception

Gr.FixedInterestPlanI 18-Nov-02 6.46% 12.50% 9.19% 153.83%Gr.GiltPlanI 28-Apr-04 0.94% 11.48% 4.66% 80.97%Gr.BondPlanI 28-Apr-04 6.96% 12.21% 9.32% 110.58%Gr.MoneyMarketPlanI 31-Mar-05 9.02% 9.75% 9.37% 127.49%Gr.ShortTermDebtPlanI 10-Dec-08 8.33% 10.92% 9.30% 57.30%Gr.CapitalProtectionPlanI** 31-Mar-06 NA NA NA NAGr.FloatingRatePlanI*** 28-Apr-04 NA NA NA NAGr.SecurePlanI 19-Jun-01 6.67% 10.04% 3.65% 259.78%Gr.StablePlanI 31-Aug-01 8.33% 9.62% 1.47% 380.67%Gr.GrowthPlanI 31-Aug-01 9.98% 9.16% -1.23% 464.89%Gr.GrowthAdvantage 18-Feb-08 11.32% 9.26% -1.29% 99.03%Gr.IncomeAdvantage 23-Mar-10 5.26% 11.37% 12.59% 40.94%Gr.GrowthMaximsier**** 23-Mar-10 NA NA NA NAGr. Bond 2 ^ 28-Nov-11 NA NA 3.07% NAGr.FixedInterest2 28-Nov-11 9.21% 11.78% 4.02% 26.98%Gr. Growth 2 28-Nov-11 11.25% 12.04% 7.46% 33.95%Gr. Money Market 2 28-Nov-11 9.05% 9.38% 3.23% 23.09%Gr. Secure 2 28-Nov-11 2.28% NA 4.84% 2.25%Gr. Short Term Debt 2 28-Nov-11 9.49% 12.83% 3.13% 27.41%Gr. Stable 2 28-Nov-11 10.26% 8.94% 7.25% 28.82%

** TheGroupCapitalProtectionFundbecameadormatfundon12thAugust2008onaccountofnounits.*** The Group Floating Fund became a dormat fund on 12th October 2009 on account of no units.**** Thesefundsdonothaveanyunitssincetheirinception.^ The Group Bond 2 Fund became a dormat fund on 31st March 2012 on account of no units. Returns for FY 11–12 are as on 30th March 2012.

RegistrationNo.109dated31January2001

Annexures to Schedule 16

145

Page 147: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

Appendix 1A to Annexure 3ARelated Party Transactions(Amounts in thousands of Indian Rupees)

Related Party : Aditya Birla Money Limited

Service : Brokerage for purchase/sale of securities

Basis of Payment : Asperagreed%oftradevalue

Fund Name Current Year PreviousYear

Gr. Growth 158 25

Gr. Growth 2 0 10

Gr.GrowthAdvantage 26 24

Gr. Secure 409 142

Gr. Secure 2 8 0

Gr. Stable 133 251

Gr. Stable 2 0 11

Ind. Balancer 77 72

Ind. Builder 553 189

Ind. Creator 624 349

Ind. Enhancer 630 130

Ind.ForesightFP 253 30

Ind.ForesightSP 17 290

Ind.Magnifier 294 1,741

Ind.Maximiser 2,530 878

Ind. Multiplier 1,452 3,064

Ind.PlatinumAdvantage 397 352

Ind.PlatinumPlus1 178 213

Ind.PlatinumPlus2 338 2

Ind.PlatinumPlus3 191 133

Ind.PlatinumPlus4 177 425

Ind.PlatinumPremier 244 69

Ind.Protector 159 1,035

IPP–Enrich 221 33

IPP–Growth 80 56

IPP–Nourish 6 6

Super 20 916 453

Titanium 1 233 244

Titanium 2 88 178

Titanium 3 24 75

PureEquity 24 17

ValueMomentum 133 38

Total 10,572 10,535

RegistrationNo.109dated31January2001

Annexures to Schedule 16

146

Page 148: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

147

Appendix 1A to Annexure 3ARelated Party Transactions(Amounts in thousands of Indian Rupees)

Related Party : Aditya Birla Finance Ltd.

Service : Purchase/sale of securities

Particulars Purchase of Investments Sale of Investments Interest Received

Current Year Previous Year Current Year Previous Year Current Year Previous Year

Ind. Enhancer – – – 37,000.00 – – Ind. Magnifier – – – 55,500.00 – – Gr. Money Market – – – – – – Gr. Bond 40,000.00 – – – – Gr. Short Term Debt 30,000.00 – – – – Ind. Assure 30,000.00 – – – – Liquid Plus – – – 6,000.00 – – Gr. Money Market 2 – – – 1,500.00 – –

Related Party : Aditya Birla Nuvo Ltd.

Service : Purchase/sale of securities

Partculars Purchase of Investments Sale of Investments Interest Received

Current Year Previous Year Current Year Previous Year Current Year Previous Year

Gr. Stable – 48,788.45 – 45,500.00 – – Gr. Secure – – – 23,000.00 – – Ind. Enhancer – – 250,000.00 10,000.00 19,695.89 19,744.09 Gr. Money Market – 146,365.35 – 128,500.00 – – Gr. Short Term Debt – 24,394.23 – 25,000.00 – – Gr. Short Term Debt 2 – 24,394.23 – 15,000.00 – – Liquid Plus – – – 3,000.00 – –

Annexures to Schedule 16

Page 149: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

148

Appendix 1A to Annexure 3ARelated Party Transactions(Amounts in thousands of Indian Rupees)

Related Party : Birla Sunlife Mutual Fund

Service : Purchase/sale of securities

Partculars Purchase of Investments Sale of Investments

Current Year Previous Year Current Year Previous Year

Discontinued Policy Fund 7,186,702.25 1,745,606.20 7,047,899.73 1,757,013.86 Gr. Bond 3,625,925.72 1,579,137.35 3,608,380.10 1,579,841.64 Gr. Bond 2 – – – – Gr. Fixed Interest 3,921,166.71 2,081,123.32 3,937,198.91 2,003,467.74 Gr. Fixed Interest 2 47,939.42 31,313.13 47,551.62 33,207.20 Gr. Gilt 174,488.80 73,800.69 173,918.34 73,187.34 Gr. Growth 4,460,931.18 3,925,160.52 4,497,799.77 3,863,600.37 Gr. Growth 2 2,611.18 41,739.42 2,563.27 41,796.09 Gr. Growth Advantage 254,484.02 190,963.14 256,390.47 192,181.05 Gr. Income Advantage 276,659.30 6,657.71 274,740.45 6,431.08 Gr. Money Market 3,776,447.12 854,996.91 3,658,741.56 837,210.54 Gr. Money Market 2 2,598.10 25,210.77 2,563.53 26,468.89 Gr. Secure 14,126,586.25 6,922,370.44 14,073,311.27 6,791,701.62 Gr. Secure 2 37,590.51 – 37,307.75 – Gr. Short Term Debt 305,991.37 316,544.93 299,431.19 319,318.20 Gr. Short Term Debt 2 178,645.55 142,466.13 185,527.77 134,761.63 Gr. Stable 3,467,556.87 5,658,684.57 3,434,098.18 5,639,167.20 Gr. Stable 2 – 25.06 – 25.15 Ind. Assure 2,313,734.59 740,543.85 2,269,995.01 726,037.22 Ind. Balancer 364,591.04 494,594.30 368,578.84 500,801.54 Ind. Builder 4,075,969.46 2,363,719.53 4,033,052.33 2,381,993.99 Ind. Creator 7,105,075.02 10,066,515.28 7,081,935.76 10,088,940.90 Ind. Enhancer 232,514,591.46 214,174,547.74 231,716,759.62 213,440,159.29 Ind. Foresight FP 17,685,700.31 20,836,561.93 17,711,024.60 20,698,437.28 Ind. Foresight SP 807,167.28 859,170.16 814,741.56 868,086.30 Ind. Income Advantage 5,714,274.09 5,395,670.48 5,759,106.41 5,325,353.14 Ind. Magnifier 18,829,094.21 37,589,257.57 19,067,256.57 37,177,157.89 Ind. Maximiser 34,026,746.30 18,058,260.77 33,669,988.91 17,960,433.05 Ind. Multiplier 10,036,402.40 14,195,465.01 10,121,736.12 14,074,431.32 Ind. Platinum Advantage 8,664,946.91 11,875,356.55 8,610,938.25 11,804,854.25 Ind. Platinum Plus 1 4,740,145.46 5,511,082.12 4,727,150.60 5,528,998.26 Ind. Platinum Plus 2 7,546,624.55 9,362,328.00 7,533,405.84 9,424,657.03 Ind. Platinum Plus 3 6,942,713.60 10,029,606.21 7,088,661.82 9,914,967.62 Ind. Platinum Plus 4 6,573,819.14 14,538,861.27 6,613,574.84 14,534,862.56 Ind. Platinum Premier 15,282,700.21 9,737,019.33 15,573,677.44 9,502,646.57 Ind. Protector 7,929,412.17 5,083,259.06 7,852,635.41 5,086,922.26 IPP – Enrich 2,203,225.09 3,659,580.93 2,204,313.21 3,674,700.24 IPP – Growth 148,742.41 693,415.38 151,131.02 698,158.11 IPP – Nourish 175,138.14 166,350.43 176,369.13 167,810.87 Liquid Plus 316,844.47 645.00 314,430.72 614.02 Super 20 7,242,205.38 3,936,563.32 7,242,100.18 3,921,212.43 Titanium 1 244,410.29 835,307.06 244,642.69 846,605.53 Titanium 2 83,187.50 225,741.48 87,852.58 224,321.62 Titanium 3 39,164.70 70,934.06 39,281.00 72,141.23 Value Momentum 2,403.18 5,085.94 2,410.89 5,094.84 Income Advantage Guaranteed 22,660.73 – 21,365.95 –

Annexures to Schedule 16

Page 150: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

149

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Annexures to Schedule 16

Page 151: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

150

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63

Annexures to Schedule 16

Page 152: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

151

Appe

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Ann

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7

Annexures to Schedule 16

Page 153: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

152

Appe

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Ann

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34

Annexures to Schedule 16

Page 154: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

153

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Assure Fundas on 31st March 2014

(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

941,513 55.56 700,090 54.13

10.05% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 30/01/2015)

Debt 30,000 1.77

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 30/11/2015)

Debt 30,281 1.79

10.15% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 14/03/2015) (F.V. 1 CR)

Debt 30,000 1.77

11.25% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 04/09/2014)

Debt 20,000 1.18

8.80% HDB FINANCIAL SERVICES LIMITED NCD (MD 17/05/2016)

Debt 29,653 1.75

9.50% CANARA BANK FD QUARTERLY COMP (MD 11/02/2019)

Debt 50,000 2.95

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 13/07/2014)

Debt 100,000 5.90

9.75% BANK OF INDIA FD QUARTERLY COMP (MD 13/03/2015)

Debt 100,000 5.90

9.75% CORPORATION BANK FD QTR COMP (MD 14/03/2015) (F.V.1CR)

Debt 140,000 8.26

9.80% STATE BANK OF INDIA NCD (MD 30/06/2016) Debt 19,160 1.139.89% IDBI BANK LTD FD QUARTERLY COMP (MD 18/03/2015)

Debt 50,100 2.96

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 19/03/2015)

Debt 100,200 5.91

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 50,000 2.95

9.97% HDB FINANCIAL SERVICES LIMITED NCD (MD 28/12/2018)

Debt 20,297 1.20

AXIS BANK CD (MD 22/08/2014) Debt 48,060 2.84L AND T FINANCE LTD. CP (MD 07/10/2014) Debt 19,042 1.12L AND T FINANCE LTD. CP (MD 21/08/2014) Debt 28,749 1.70ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015) Debt 75,971 4.48

HOUSING FINANCE SERVICES

210,582 12.43 NA NA

10.18% LIC HOUSING FINANCE LTD. NCD (MD 19/09/2016)

Debt 71,085 4.19

9.62% LIC HOUSING FINANCE LTD. NCD (MD 03/08/2015)

Debt 78,135 4.61

9.62% LIC HOUSING FINANCE LTD. NCD (MD 30/04/2015)

Debt 13,042 0.77

9.75% HDFC LTD. NCD MD (10/10/2016) Debt 48,320 2.85

Others (Other than G-Sec) 479,282 28.28 178,280 13.78

Annexures to Schedule 16

Page 155: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

154

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Income Advas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,263,960 29.08 1,191,477 33.79

10.00% CORPORATION BANK FD QTR COMP (MD 11/03/2015)

Debt 200,000 4.60

10.00% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 05/12/2014)

Debt 10,021 0.23

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 12/06/2017)

Debt 19,345 0.45

10.20% SUNDARAM FINANCE LTD. NCD (MD 21/07/2014)

Debt 19,009 0.44

10.25% KOTAK MAHINDRA PRIME LTD. NCD (MD 05/06/2014)

Debt 20,013 0.46

8.83% EXPORT IMPORT BANK OF INDIA NCD (MD 09/01/2023)

Debt 66,770 1.54

8.87% EXPORT IMPORT BANK OF INDIA NCD (MD 10/10/2022)

Debt 28,699 0.66

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 33,665 0.77

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 31,124 0.72

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 100,000 2.30

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 11/07/2014)

Debt 180,000 4.14

9.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 21/05/2018)

Debt 19,693 0.45

9.70% TATA SONS LTD. NCD (MD 25/07/2022) Debt 35,122 0.819.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 30,255 0.709.75% BANK OF INDIA FD QUARTERLY COMP (MD 24/03/2015)

Debt 100,000 2.30

9.75% BANK OF INDIA FD QUARTERLY COMP (MD 26/03/2015) (F.V. 10CR)

Debt 200,000 4.60

9.87% TATA SONS LTD. NCD (MD 17/07/2017) Debt 20,244 0.479.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 50,000 1.15

9.95% BANK OF INDIA FD QUARTERLY COMP (MD 05/03/2015) (FV 10 CRORES)

Debt 100,000 2.30

HOUSING FINANCE SERVICES

459,735 10.58 NA NA

10.05% CAN FIN HOMES LTD. NCD MD (13/01/2017)

Debt 50,372 1.16

10.25% HDFC (30/03/2017) Debt 51,079 1.188.58% HDFC LTD. NCD (MD 08/05/2018) Debt 19,375 0.459.18% HDFC LTD. NCD (MD 12/02/2018) Debt 29,643 0.689.25% LIC HOUSING FINANCE LTD NCD (MD 12/11/2022)

Debt 19,559 0.45

9.45% LIC HOUSING FINANCE LTD NCD (MD 30/01/2022)

Debt 19,807 0.46

9.50 HDFC LTD. NCD (MD 04/07/2022) Debt 9,925 0.239.50 HDFC LTD. NCD (MD 13/09/2017) Debt 20,041 0.469.50% HDFC LTD. NCD (MD 13/08/2017) Debt 30,062 0.699.50% HDFC LTD. NCD (MD 23/07/2017) Debt 20,042 0.469.60% HDFC LTD. NCD (MD 07/04/2016) Debt 56,193 1.299.62% LIC HOUSING FINANCE LTD. NCD (MD 03/08/2015)

Debt 12,021 0.28

9.65% HDFC LTD. NCD (MD 13/09/2016) Debt 53,228 1.229.75% HDFC LTD. NCD (MD 08/03/2016) Debt 68,387 1.57

Others (Other than G-Sec) 1,187,223 27.32 843,310 23.91

Annexures to Schedule 16

Page 156: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

155

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Protector as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

INFRASTRUCTURE FINANCE

693,282 16.67 868,602 21.44

10.85% RECL Ltd NCD (MD 14/08/2018) Debt 36,526 0.8810.85% RECL Ltd NCD (MD 30/09/2018) Debt 114,906 2.7611% Power Finance Corpoartion Ltd NCD (MD 15/09/2018)

Debt 11,545 0.28

11.25% Power Finance Corporation Ltd NCD (MD 28/11/2018)

Debt 58,329 1.40

8.19% IRFC NCD (MD 27/04/2019) Debt 9,547 0.238.60% Power Finance Corporation Ltd NCD (MD 07/08/2014)

Debt 129,437 3.11

8.65% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 22/01/2020)

Debt 15,323 0.37

8.70% Power Finance Corporation Ltd. NCD (MD 14/05/2020)

Debt 14,377 0.35

9.18% NABARD NCD SR XII - AB (MD 07/02/2017) Debt 29,833 0.729.35% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 15/06/2022)

Debt 38,393 0.92

9.43% REC LTD. NCD (MD 10/08/2014) Debt 24,958 0.609.57% IRFC NCD (MD 31/05/2021) Debt 100,888 2.439.61% POWER FINANCE CORPORATION LTD (MD 29/06/2021)

Debt 49,933 1.20

9.655% NABARD NCD (MD 18/10/2014) Debt 40,037 0.969.70% Power Finance Corporation Ltd. NCD (MD 15/12/2018) - Series 82-C

Debt 17,078 0.41

RURAL ELECTRIFICATION CORPORATION LIMITED Equity 2,172 0.05

FINANCIAL AND INSURANCE ACTIVITIES

437,766 10.53 786,808 19.42

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 12/06/2017)

Debt 30,545 0.73

8.88% EXPORT IMPORT BANK OF INDIA NCD (MD 18/10/2022)

Debt 47,857 1.15

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 9,618 0.23

9.10% CORPORATION BANK FD QTR COMP (MD 20/07/2014)

Debt 50,000 1.20

9.55% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD. NCD (MD 16/10/2014)

Debt 94,907 2.28

AXIS BANK LIMITED Equity 6,647 0.16FEDRAL BANK LTD. Equity 5,035 0.12HDFC BANK Equity 26,710 0.64HOUSING DEVELOPMENT FINANCE CORPORATION Equity 21,962 0.53ICICI BANK LTD. Equity 22,971 0.55INDUSIND BANK LTD. Equity 2,154 0.05LIC HOUSING FINANCE LTD. Equity 3,147 0.08PUNJAB NATIONAL BANK Equity 2,444 0.06STATE BANK OF INDIA Equity 11,213 0.27UNION BANK OF INDIA LTD. Equity 4,328 0.10UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 98,228 2.36

Others (Other than G-Sec) 1,192,809.95 28.68 1,002,770.77 24.75

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Builderas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

INFRASTRUCTURE FINANCE

508,861 18.72 516,322 18.67

10.85% RECL Ltd. NCD (MD 30/09/2018) Debt 24,026 0.888.19% IRFC NCD (MD 27/04/2019) Debt 38,188 1.418.29% POWER FINANCE CORPORATION LTD NCD (MD 25/06/2015)

Debt 24,681 0.91

8.50% IRFC NCD (MD 22/06/2020) Debt 50,795 1.878.60% Power Finance Corporation Ltd NCD (MD 07/08/2014)

Debt 79,654 2.93

8.65% RECL Ltd NCD (MD 15/01/2019) Debt 106,258 3.918.70% Power Finance Corporation Ltd. NCD (MD 14/05/2020)

Debt 24,920 0.92

9.35% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 15/06/2022)

Debt 24,611 0.91

9.61% POWER FINANCE CORPORATION LTD (MD 29/06/2021)

Debt 9,987 0.37

9.655% NABARD NCD (MD 18/10/2014) Debt 30,028 1.109.70% Power Finance Corporation Ltd NCD (MD 15/12/2018) - Series 82-C

Debt 15,069 0.55

9.81% POWER FINANCE CORPORATION LTD (MD 07/10/2018)

Debt 80,647 2.97

Others (Other than G-Sec) 1,103,811 40.61 847,947 30.66

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Balanceras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

45,294 14.83 69,588 20.25

10.70% HDFC Bank Ltd. NCD (MD 26/12/2018) Debt 2,084 0.687.05% Canara Bank NCD (MD 18/05/2014) Debt 9,966 3.269.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 12,834 4.20

AXIS BANK LIMITED Equity 1,028 0.34HDFC BANK Equity 5,302 1.74HOUSING DEVELOPMENT FINANCE CORPORATION Equity 5,144 1.68ICICI BANK LTD. Equity 4,101 1.34INDUSIND BANK LTD. Equity 918 0.30PUNJAB NATIONAL BANK Equity 1,108 0.36STATE BANK OF INDIA Equity 2,809 0.92

INFRASTRUCTURE FINANCE

41,158 13.47 51,522 14.99

10.05% NABARD (MD 11/06/2014) Debt 10,003 3.2710.85% RECL Ltd NCD (MD 14/08/2018) Debt 3,131 1.0211% Power Finance Corpoartion Ltd. NCD (MD 15/09/2018)

Debt 2,099 0.69

8.60% Power Finance Corporation Ltd. NCD (MD 07/08/2014)

Debt 4,978 1.63

9.36% POWER FINANCE CORPN. LTD. NCD (MD 01/08/2021)

Debt 1,972 0.65

9.40% NABARD NCD Sr XII-L (MD 13/09/2016) Debt 9,991 3.279.43% REC LTD. NCD (MD 10/08/2014) Debt 8,985 2.94

Others (Other than G-Sec) 91,706 30.02 112,783 32.82

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Enhanceras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

12,010,977 18.29 18,587,396 28.19

10.00% HDB FINANCIAL SERVICES LIMITED NCD (MD 15/02/2019)

Debt 45,742 0.07

10.00% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 05/12/2014)

Debt 20,041 0.03

10.05% BAJAJ FINANCE LIMITED NCD (MD 10/01/2017) Debt 50,370 0.0810.08% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 22/10/2014)

Debt 75,031 0.11

10.1% ICICI Bank (Call 09/08/16) MD - Perpetual Debt 50,968 0.0810.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 12/06/2017)

Debt 102,834 0.16

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 30/11/2015)

Debt 50,469 0.08

10.12% ADITYA BIRLA FINANCE LTD NCD (MD 11/12/2015)

Debt 70,436 0.11

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 50,515 0.08

10.20% SUNDARAM FINANCE LTD. NCD (MD 21/07/2014)

Debt 91,044 0.14

10.25% KOTAK MAHINDRA PRIME LTD. NCD (MD 05/06/2014)

Debt 60,040 0.09

10.25% TATA SONS LTD. NCD (MD 13/05/2014) Debt 100,035 0.1510.32% SUNDARAM FINANCE LTD. NCD (MD 13/08/2018)

Debt 40,514 0.06

10.40% Punjab Nat Bank (Maturity-Perpetual) (Call 20/07/2017)

Debt 51,330 0.08

10.70% HDFC Bank Ltd NCD (MD 26/12/2018) Debt 102,112 0.1610.85% Punjab National Bank (MD 29/09/2023) Call 29/09/2018 st-up 11.35%

Debt 282,036 0.43

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 273,180 0.42

5.90% HDFC Bank Ltd NCD (MD 04/05/2014) Debt 4,985 0.017.05% Canara Bank NCD (MD 18/05/2014) Debt 22,921 0.037.45% STATE BK OF INDIA 050515 AAA Debt 982 0.008.8% ST BK INDIA(050621)RSET050616 (Call 06/06/2016) Debt 975 0.008.8% State Bank of Hyderabad NCD (MD 29/04/2016) Debt 69,254 0.118.80% HDB FINANCIAL SERVICES LIMITED NCD (MD 17/05/2016)

Debt 96,867 0.15

8.83% EXPORT IMPORT BANK OF INDIA NCD (MD 09/01/2023)

Debt 95,385 0.15

8.85% STATE BANK OF INDIA NCD (MD 04/10/2021) CALL 04/10/16 STEPUP 9.35

Debt 29,276 0.04

8.85% TATA SONS LTD. NCD (MD 02/05/2023) Debt 14,316 0.028.87% EXPORT IMPORT BANK OF INDIA NCD (MD 10/10/2022)

Debt 19,133 0.03

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 91,376 0.14

8.97% Tata Sons Ltd. NCD (MD 15/07/2020) Debt 145,424 0.229% Canara Bank NCD (MD 09/01/2018) Debt 35,442 0.059.00% CANARA BANK FD QUARTERLY COMP (MD 14/11/2014)A

Debt 150,000 0.23

9.00% CANARA BANK FD QUARTERLY COMP (MD 14/11/2014)B

Debt 100,000 0.15

9.00% EXPORT IMPORT BANK OF INDIA NCD (MD 07/02/2022)

Debt 19,327 0.03

9.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 177,701 0.27

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Enhanceras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

9.00% Punjab National Bank NCD (Perpetual) Call/Step-Up 27/11/2019

Debt 84,967 0.13

9.05% SBI Perpetual NCD (Call- 27/01/2020) Step Up Rate 9.55%

Debt 461,321 0.70

9.05% STATE BANK OF HYDERABAD PERPETUAL CALL 20/09/20 STEP UP 50BPS

Debt 96,946 0.15

9.1% SBI Perpetual NCD (Call- 14/08/2019) Step Up Rate 9.6%

Debt 119,844 0.18

9.10% AXIS BANK NCD (MD 28/06/2016) Debt 49,671 0.089.10% CORPORATION BANK FD QTR COMP (MD 19/07/2014)

Debt 50,000 0.08

9.10% HDFC BANK LTD. NCD CALL 28/12/2017 (MD 28/12/2022)

Debt 135,772 0.21

9.10% State Bank of Mysore Perpetual NCD Call/Step-Up 25/11/2019

Debt 293,687 0.45

9.15% AXIS BANK NCD (MD 31/12/2022) Debt 48,612 0.079.15% Bank of Baroda Perpetual NCD Step up 9.65% Reset 23/11/19

Debt 48,964 0.07

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 20/07/2015) P/C 20/01/2015

Debt 39,967 0.06

9.15% ICICI Bank Ltd NCD (MD 31/12/2022) Debt 115,696 0.189.15% State Bank of Patiala PERP NCD Call 18/01/2020 StepUp 9.65

Debt 156,665 0.24

9.18% TATA SONS LTD. NCD (MD 23/11/2020) Debt 107,595 0.169.20% State Bank of Hyderabad NCD Perpetual (MD 24/02/2020)

Debt 49,097 0.07

9.28% EXPORT IMPORT BANK OF INDIA NCD (MD 15/10/2018)

Debt 98,936 0.15

9.30% State Bank of Patiala NCD(MD 20/12/2022) Call fr 20/12/2017 Int 9.80

Debt 54,693 0.08

9.35 Punjab National Bank (MD 05/03/2023) Call 05/03/2018 St-up 9.85

Debt 39,737 0.06

9.35% State Bank of Hyderabad NCD (MD 19/03/2023) call 19/03/18 Stepup 9.85

Debt 69,832 0.11

9.45% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 20,648 0.03

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 29/06/2014)

Debt 60,000 0.09

9.55% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 16/10/2014)

Debt 4,995 0.01

9.57% BAJAJ FINANCE LIMITED NCD (MD 10/10/2014) Debt 149,871 0.239.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 21/05/2018)

Debt 7,877 0.01

9.67% TATA SONS LTD. NCD (MD 13/09/2022) Debt 50,085 0.089.68% TATA SONS LTD. NCD (MD 10/01/2017) Debt 150,913 0.239.70% SUNDARAM FINANCE LTD. NCD (MD 15/10/2014) Debt 124,971 0.199.70% TATA SONS LTD. NCD (MD 25/07/2022) Debt 115,401 0.189.71% TATA SONS LTD. NCD (MD 29/08/2022) Debt 50,198 0.089.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 30,255 0.059.75% BANK OF INDIA FD QUARTERLY COMP (MD 24/03/2015)

Debt 100,000 0.15

9.75% L AND T FINANCE LIMITED NCD (MD 08/10/2014) Debt 52,998 0.089.75% Punjab Nati Bank (Maturity-Perpetual) (Call 11/12/2017) Step up 10.25

Debt 100,942 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 09/05/2019)

Debt 9,900 0.02

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 11/09/2019)

Debt 9,900 0.02

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Enhanceras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 12/09/2019)

Debt 9,900 0.02

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 10/09/2018)

Debt 9,900 0.02

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 12/09/2018)

Debt 9,900 0.02

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 13/09/2018)

Debt 9,900 0.02

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 14/09/2018)

Debt 9,900 0.02

9.75% STATE BANK OF INDIA NCD (MD 16/03/2021) CALL 16/03/16

Debt 1,811 0.00

9.78% State Bank of Bik & Jai NCD(MD15/10/2022) Call-16/10/17stepup -10.28

Debt 72,871 0.11

9.8% State Bank of Mysore Perpetual (30/11/2017) Call 301117 Stepup 10.30%

Debt 101,294 0.15

9.80% STATE BANK OF INDIA NCD (MD 30/06/2016) Debt 30,253 0.059.85% State Bank of Bik & Jai NCD(MD Perpetual) call 20/03/18 stepup 10.35

Debt 93,359 0.14

9.85% State Bank of India (28/06/2016) Debt 93,873 0.149.85% TATA SONS LTD. NCD (MD 21/05/2017) Debt 91,034 0.149.87% TATA SONS LTD. NCD (MD 16/04/2017) Debt 101,203 0.159.87% TATA SONS LTD. NCD (MD 17/07/2017) Debt 131,583 0.209.90% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 08/08/2014)

Debt 99,897 0.15

9.90% TATA SONS LTD. NCD (MD 18/03/2016) Debt 6,051 0.019.90% TATA SONS LTD. NCD (MD 20/03/2024) Debt 102,041 0.169.90% TATA SONS LTD. NCD (MD 24/02/2016) Debt 151,197 0.239.95% L AND T FINANCE LIMITED NCD (MD 28/10/2016) Debt 50,218 0.089.95% State Bank of Hyderabad (MD Perpetual) call 28/03/2018 Stepup 10.45

Debt 47,845 0.07

9.95% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 21,322 0.03

9.95% State Bank of Travancore NCD(MD Perpetual) Call 31/03/18 stepup 10.45

Debt 39,499 0.06

9.98% ICICI Bank Ltd (Maturity-Perpetual) (Call and Steup up 13/09/16)10.98%

Debt 203,496 0.31

AXIS BANK LIMITED Equity 341,179 0.52HDFC BANK Equity 1,181,837 1.80HOUSING DEVELOPMENT FINANCE CORPORATION Equity 991,865 1.51ICICI BANK LTD Equity 1,079,773 1.64INDUSIND BANK LTD Equity 209,818 0.32LIC HOUSING FINANCE LTD Equity 106,430 0.16ORIENTAL BANK OF COMMERCE Equity 22,290 0.03PUNJAB NATIONAL BANK Equity 111,585 0.17STATE BANK OF INDIA Equity 468,105 0.71STATE BANK OF MYSORE CD (MD 15/09/2014) Debt 153,855 0.23STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 47,167 0.07UNION BANK OF INDIA LTD. Equity 38,063 0.06UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 19,646 0.03

Others (Other than G-Sec)

34,085,867 51.89 21,287,642 32.28

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Creatoras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

654,117 18.57 753,735 23.46

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 25,483 0.72

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 28,855 0.82

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 20,000 0.57

9.70% SUNDARAM FINANCE LTD. NCD (MD 15/10/2014)

Debt 49,988 1.42

AXIS BANK LIMITED Equity 28,018 0.80FEDRAL BANK LTD Equity 20,362 0.58HDFC BANK Equity 109,708 3.11HOUSING DEVELOPMENT FINANCE CORPORATION Equity 90,908 2.58ICICI BANK LTD Equity 96,900 2.75INDUSIND BANK LTD Equity 9,093 0.26LIC HOUSING FINANCE LTD Equity 13,363 0.38PUNJAB NATIONAL BANK Equity 10,308 0.29STATE BANK OF INDIA Equity 52,902 1.50UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 98,228 2.79

INFRASTRUCTURE FINANCE

380,961 10.81 375,496.4 11.69

10.05% NABARD (MD 11/06/2014) Debt 9,003 0.2610.60% IRFC NCD (MD 11/09/2018) Debt 26,137 0.7410.85% RECL Ltd NCD (MD 14/08/2018) Debt 18,785 0.5311% Power Finance Corpoartion Ltd. NCD (MD 15/09/2018)

Debt 57,723 1.64

8.29% POWER FINANCE CORPORATION LTD NCD (MD 25/06/2015)

Debt 24,681 0.70

8.45% IRFC NCD (MD 26/12/2018) Debt 48,345 1.378.60% Power Finance Corporation Ltd. NCD (MD 07/08/2014)

Debt 109,524 3.11

8.82% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 12/04/2023)

Debt 47,649 1.35

9.18% NABARD NCD SR XII - AB (MD 07/02/2017) Debt 19,889 0.569.655% NABARD NCD (MD 18/10/2014) Debt 10,009 0.28RURAL ELECTRIFICATION CORPORATION LIMITED Equity 9,217 0.26

Others (Other than G-Sec) 1,649,460 46.82 1,366,971 42.55

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Magnifieras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

2,968,467 30.37 3,364,090 33.48

8.80% HDB FINANCIAL SERVICES LIMITED NCD (MD 17/05/2016)

Debt 988 0.01

9.00 PUNJAB AND NATIONAL BANK FD QTR (MD 02/01/16) (FV 2 CR)

Debt 100,000 1.02

9.00 PUNJAB AND NATIONAL BANK FD QTR (MD 02/01/16) (FV 5 CR)

Debt 50,000 0.51

9.50% UNION BANK OF INDIA FD QUARTERLY COMP (MD 06/03/2016)

Debt 100,000 1.02

9.50% UNION BANK OF INDIA FD QUARTERLY COMP (MD 13/03/2016)

Debt 100,000 1.02

9.50% UNION BANK OF INDIA FD QUARTERLY COMP (MD 15/03/2016)

Debt 100,000 1.02

9.75% BANK OF INDIA FD QUARTERLY COMP (MD 21/03/2015) (F.V. 10CR)

Debt 100,000 1.02

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 19/03/2015)

Debt 300,600 3.08

AXIS BANK LIMITED Equity 148,016 1.51HDFC BANK Equity 524,516 5.37HOUSING DEVELOPMENT FINANCE CORPORATION Equity 440,262 4.50ICICI BANK LTD. Equity 477,448 4.89INDUSIND BANK LTD. Equity 93,417 0.96LIC HOUSING FINANCE LTD. Equity 46,829 0.48ORIENTAL BANK OF COMMERCE Equity 45,472 0.47PUNJAB NATIONAL BANK Equity 58,768 0.60STATE BANK OF INDIA Equity 208,839 2.14STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 56,415 0.58UNION BANK OF INDIA LTD. Equity 16,897 0.17

COMPUTER PROGRAMMING, CONSULTANCY

1,368,725 14.01 949,995 9.45

HCL TECHNOLOGIES LTD. Equity 148,763 1.52INFOSYS LIMITED Equity 531,249 5.44TATA CONSULTANCY SERVICES LIMITED Equity 409,689 4.19TECH MAHINDRA LIMITED Equity 109,267 1.12WIPRO LTD. Equity 169,758 1.74

Others (Other than G-Sec) 5,008,954.77 51.25 5,671,785 56.44

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Maximiseras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

5,023,273 24.27 6,561,274 30.74

AXIS BANK LIMITED Equity 366,812 1.77

FEDRAL BANK LTD. Equity 154,514 0.75

HDFC BANK Equity 1,338,270 6.46

HOUSING DEVELOPMENT FINANCE CORPORATION Equity 1,141,590 5.51

ICICI BANK LTD. Equity 1,117,351 5.40

INDUSIND BANK LTD. Equity 106,362 0.51

STATE BANK OF INDIA Equity 502,796 2.43

STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 66,034 0.32

STATE BANK OF PATIALA CD (MD 19/03/2015) Debt 229,545 1.11

COMPUTER PROGRAMMING, CONSULTANCY

3,438,130 16.61 2,247,441 10.53 HCL TECHNOLOGIES LTD. Equity 401,563 1.94INFOSYS LIMITED Equity 1,248,245 6.03TATA CONSULTANCY SERVICES LIMITED Equity 1,077,578 5.21TECH MAHINDRA LIMITED Equity 308,867 1.49WIPRO LTD. Equity 401,877 1.94

MANUFACTURE OF PHARMACEUTICALS

2,244,999 10.85 1,089,417 5.10

DIVIS LABORATORIES LTD. Equity 505,492 2.44DR REDDY LABORATORIES Equity 398,548 1.93LUPIN LIMITED Equity 595,611 2.88SUN PHARMACEUTICALS INDUSTRIES LTD. Equity 745,347 3.60

Others (Other than G-Sec) 10,202,350 49.29 11,359,777 53.23

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Multiplieras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

551,245 15.24 800,031 22.11

CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED

Equity 34,448 0.95

CITY UNION BANK Equity 4,884 0.14FEDRAL BANK LTD. Equity 59,627 1.65HDFC BANK Equity 74,880 2.07INDUSIND BANK LTD. Equity 38,748 1.07ING VYSYA BANK LIMITED Equity 44,529 1.23JAMMU KASHMIR BANK LTD. Equity 38,762 1.07KARUR VYSYA BANK LIMITED Equity 34,060 0.94LIC HOUSING FINANCE LTD. Equity 26,416 0.73MAHINDRA N MAHINDRA FINANCIAL SERVICES LTD Equity 16,128 0.45MUTHOOT FINANCE LTD. Equity 35,309 0.98ORIENTAL BANK OF COMMERCE Equity 40,487 1.12PUNJAB NATIONAL BANK Equity 31,038 0.86STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 71,929 1.99

MANUFACTURE OF PHARMACEUTICALS

484,733 13.40 299,618 8.28

DIVIS LABORATORIES LTD. Equity 188,054 5.20GLENMARK PHARMACEUTICALS LTD. Equity 41,397 1.14LUPIN LIMITED Equity 83,741 2.31SUN PHARMACEUTICALS INDUSTRIES LTD. Equity 135,584 3.75UNICHEM LABORATORIES LIMITED Equity 35,957 0.99

Others (Other than G-Sec) 2,398,574 66.30 2,452,388 67.76

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseSuper 20 Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

724,117 19.46 683,526 28.04

HDFC BANK Equity 257,771 6.93HOUSING DEVELOPMENT FINANCE CORPORATION Equity 212,000 5.70ICICI BANK LTD. Equity 254,346 6.84

COMPUTER PROGRAMMING, CONSULTANCY

737,240 19.81 343,850 14.11

HCL TECHNOLOGIES LTD. Equity 107,084 2.88INFOSYS LIMITED Equity 247,553 6.65TATA CONSULTANCY SERVICES LIMITED Equity 225,263 6.05WIPRO LTD. Equity 157,341 4.23

MANUFACTURE OF PHARMACEUTICALS

541,716 14.56 191,498 7.86

DIVIS LABORATORIES LTD. Equity 144,649 3.89LUPIN LIMITED Equity 205,489 5.52SUN PHARMACEUTICALS INDUSTRIES LTD. Equity 191,578 5.15

Others (Other than G-Sec) 1,642,996 44.15 1,203,280 49.36

Annexures to Schedule 16

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165

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Platinum Plus 1as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous YearMarket value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

660,557 20.51 827,947 22.56

9.00% STATE BANK OF BIKANER AND J AIPUR FD QTR COMP (MD 14/03/2018)

Debt 5,000 0.16

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 13/03/2018)

Debt 9,900 0.31

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 14/03/2018)

Debt 9,900 0.31

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 15/03/2018)

Debt 9,900 0.31

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 16/03/2018)

Debt 9,900 0.31

AXIS BANK LIMITED Equity 43,538 1.35HDFC BANK Equity 159,299 4.95HOUSING DEVELOPMENT FINANCE CORPORATION Equity 131,385 4.08ICICI BANK LTD. Equity 164,543 5.11INDUSIND BANK LTD. Equity 18,401 0.57PUNJAB NATIONAL BANK Equity 17,046 0.53STATE BANK OF INDIA Equity 81,746 2.54

COMPUTER PROGRAMMING, CONSULTANCY

383,160 11.90 275,167 7.50

HCL TECHNOLOGIES LTD. Equity 40,860 1.27INFOSYS LIMITED Equity 167,423 5.20TATA CONSULTANCY SERVICES LIMITED Equity 119,354 3.71TECH MAHINDRA LIMITED Equity 28,401 0.88WIPRO LTD. Equity 27,123 0.84

Others (Other than G-Sec) 1,953,335 60.64 2,106,972 57.40

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Platinum Plus 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,339,095 23.56 1,613,202 25.68

9.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 124,391 2.19

9.85% TATA SONS LTD. NCD (MD 21/05/2017) Debt 10,115 0.18AXIS BANK LIMITED Equity 84,513 1.49HDFC BANK Equity 311,617 5.48HOUSING DEVELOPMENT FINANCE CORPORATION Equity 262,110 4.61ICICI BANK LTD. Equity 318,806 5.61INDUSIND BANK LTD. Equity 35,670 0.63PUNJAB NATIONAL BANK Equity 33,205 0.58STATE BANK OF INDIA Equity 158,667 2.79

COMPUTER PROGRAMMING, CONSULTANCY

744,749 13.10 520,416 8.28

HCL TECHNOLOGIES LTD. Equity 76,847 1.35INFOSYS LIMITED Equity 327,111 5.76TATA CONSULTANCY SERVICES LIMITED Equity 232,539 4.09TECH MAHINDRA LIMITED Equity 55,160 0.97WIPRO LTD. Equity 53,091 0.93

Others (Other than G-Sec) 3,293,586 57.95 3,576,584 56.93

Annexures to Schedule 16

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167

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Platinum Plus 3as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,606,262 23.69 2,134,409 28.68

9.45% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 990 0.01

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 16/05/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 16/09/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 17/05/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 17/09/2019)

Debt 500 0.01

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 21/05/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 22/05/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 23/05/2019)

Debt 9,900 0.15

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 27/05/2019)

Debt 9,900 0.15

9.95% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 20,326 0.30

AXIS BANK LIMITED Equity 107,986 1.59HDFC BANK Equity 393,900 5.81HOUSING DEVELOPMENT FINANCE CORPORATION Equity 323,003 4.76ICICI BANK LTD Equity 389,059 5.74INDUSIND BANK LTD Equity 63,720 0.94LIC HOUSING FINANCE LTD Equity 32,863 0.48STATE BANK OF INDIA Equity 204,615 3.02

COMPUTER PROGRAMMING, CONSULTANCY

973,120 14.35 660,623 8.88

HCL TECHNOLOGIES LTD Equity 115,247 1.70INFOSYS LIMITED Equity 408,702 6.03TATA CONSULTANCY SERVICES LIMITED Equity 289,067 4.26TECH MAHINDRA LIMITED Equity 55,282 0.82WIPRO LTD. Equity 104,821 1.55

Others (Other than G-Sec) 3,811,261 56.21 4,104,886 55.16

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Platinum Plus 4as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,248,397 24.31 1,608,655 28.11

9.95% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 50,815 0.99

AXIS BANK LIMITED Equity 85,926 1.67HDFC BANK Equity 313,423 6.10HOUSING DEVELOPMENT FINANCE CORPORATION Equity 251,373 4.90ICICI BANK LTD. Equity 309,593 6.03INDUSIND BANK LTD. Equity 49,845 0.97LIC HOUSING FINANCE LTD. Equity 25,770 0.50STATE BANK OF INDIA Equity 161,653 3.15

COMPUTER PROGRAMMING, CONSULTANCY

764,665 14.89 528,550 9.24

HCL TECHNOLOGIES LTD. Equity 90,258 1.76INFOSYS LIMITED Equity 320,769 6.25TATA CONSULTANCY SERVICES LIMITED Equity 226,811 4.42TECH MAHINDRA LIMITED Equity 43,347 0.84WIPRO LTD. Equity 83,480 1.63

Others (Other than G-Sec) 2,926,015 56.99 3,124,735 54.60

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd.Platinum Premieras on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

2,113,218 24.66 2,291,593 25.89

9.45% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 14,211 0.17

AXIS BANK LIMITED Equity 151,372 1.77HDFC BANK Equity 552,180 6.44HOUSING DEVELOPMENT FINANCE CORPORATION Equity 440,988 5.15ICICI BANK LTD. Equity 545,316 6.36INDUSIND BANK LTD. Equity 86,433 1.01LIC HOUSING FINANCE LTD. Equity 44,090 0.51STATE BANK OF INDIA Equity 278,628 3.25

COMPUTER PROGRAMMING, CONSULTANCY

1,329,190 15.51 868,320 9.81

HCL TECHNOLOGIES LTD. Equity 157,797 1.84INFOSYS LIMITED Equity 558,040 6.51TATA CONSULTANCY SERVICES LIMITED Equity 394,684 4.61TECH MAHINDRA LIMITED Equity 75,904 0.89WIPRO LTD. Equity 142,765 1.67

Others (Other than G-Sec) 4,856,821 56.68 5,277,789 59.62

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Platinum Advantageas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

2,202,689 24.45 1,887,402 29.08

AXIS BANK LIMITED Equity 156,447 1.74HDFC BANK Equity 586,599 6.51HOUSING DEVELOPMENT FINANCE CORPORATION Equity 490,732 5.45ICICI BANK LTD Equity 595,820 6.61INDUSIND BANK LTD Equity 69,031 0.77PUNJAB NATIONAL BANK Equity 61,036 0.68STATE BANK OF INDIA Equity 243,024 2.70

COMPUTER PROGRAMMING, CONSULTANCY

1,423,694 15.81 678,742 10.46

HCL TECHNOLOGIES LTD Equity 153,236 1.70INFOSYS LIMITED Equity 632,484 7.02TATA CONSULTANCY SERVICES LIMITED Equity 415,907 4.62TECH MAHINDRA LIMITED Equity 106,513 1.18WIPRO LTD. Equity 115,555 1.28

Others (Other than G-Sec) 5,240,317 58.18 3,773,004 58.12

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Foresight FPas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

3,018,828 22.58 1,914,030 24.68

8.85% TATA SONS LTD. NCD (MD 02/05/2023) Debt 47,718 0.369.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 229,037 1.71

9.04% EXPORT IMPORT BANK OF INDIA NCD (MD 21/09/2022)

Debt 48,318 0.36

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 104,071 0.78

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 30/03/2021)

Debt 48,841 0.37

9.50% CANARA BANK FD QUARTERLY COMP (MD 10/02/2019)

Debt 50,000 0.37

AXIS BANK LIMITED Equity 172,657 1.29HDFC BANK Equity 629,849 4.71HOUSING DEVELOPMENT FINANCE CORPORATION Equity 571,867 4.28ICICI BANK LTD Equity 621,993 4.65INDUSIND BANK LTD Equity 96,542 0.72LIC HOUSING FINANCE LTD Equity 47,808 0.36STATE BANK OF INDIA Equity 317,109 2.37STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 33,017 0.25

COMPUTER PROGRAMMING, CONSULTANCY

1,578,849 11.81 577,477 7.45

HCL TECHNOLOGIES LTD Equity 180,610 1.35INFOSYS LIMITED Equity 637,342 4.77TATA CONSULTANCY SERVICES LIMITED Equity 509,499 3.81TECH MAHINDRA LIMITED Equity 88,787 0.66WIPRO LTD. Equity 162,610 1.22

Others (Other than G-Sec) 7,609,256 56.93 4,018,907 51.82

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Foresight SPas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

189,645 24.38 176,899 27.20

AXIS BANK LIMITED Equity 13,748 1.77HDFC BANK Equity 50,125 6.44HOUSING DEVELOPMENT FINANCE CORPORATION Equity 39,168 5.04ICICI BANK LTD Equity 49,499 6.36INDUSIND BANK LTD Equity 8,058 1.04LIC HOUSING FINANCE LTD Equity 4,005 0.51STATE BANK OF INDIA Equity 25,041 3.22

COMPUTER PROGRAMMING, CONSULTANCY

126,692 16.29 75,996 11.68

HCL TECHNOLOGIES LTD Equity 15,118 1.94INFOSYS LIMITED Equity 53,913 6.93TATA CONSULTANCY SERVICES LIMITED Equity 37,938 4.88TECH MAHINDRA LIMITED Equity 6,880 0.88WIPRO LTD. Equity 12,842 1.65

Others (Other than G-Sec) 435,802 56.02 384,700 59.15

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseTitanium 1as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

101,101 20.87 159,453 27.84

AXIS BANK LIMITED Equity 5,852 1.21HDFC BANK Equity 25,627 5.29HOUSING DEVELOPMENT FINANCE CORPORATION Equity 21,901 4.52ICICI BANK LTD Equity 16,667 3.44INDUSIND BANK LTD Equity 7,961 1.64KOTAK MAHINDRA BANK LIMITED Equity 3,913 0.81PUNJAB NATIONAL BANK Equity 4,530 0.94STATE BANK OF INDIA Equity 14,649 3.02

COMPUTER PROGRAMMING, CONSULTANCY

55,744 11.51 39,342 6.87

HCL TECHNOLOGIES LTD Equity 4,029 0.83INFOSYS LIMITED Equity 16,450 3.40TATA CONSULTANCY SERVICES LIMITED Equity 18,580 3.84TECH MAHINDRA LIMITED Equity 10,770 2.22WIPRO LTD. Equity 5,915 1.22

Others (Other than G-Sec) 263,112 54.32 288,374 50.35

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseTitanium 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

35,223 24.55 72,795 28.50

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 20/07/2015) P/C 20/01/2015

Debt 5,995 4.18

AXIS BANK LIMITED Equity 1,696 1.18HDFC BANK Equity 7,343 5.12HOUSING DEVELOPMENT FINANCE CORPORATION Equity 6,330 4.41ICICI BANK LTD Equity 4,847 3.38INDUSIND BANK LTD Equity 2,296 1.60KOTAK MAHINDRA BANK LIMITED Equity 1,140 0.79PUNJAB NATIONAL BANK Equity 1,317 0.92STATE BANK OF INDIA Equity 4,259 2.97

COMPUTER PROGRAMMING, CONSULTANCY

16,073 11.20 16,677 6.53

HCL TECHNOLOGIES LTD Equity 1,156 0.81INFOSYS LIMITED Equity 4,734 3.30TATA CONSULTANCY SERVICES LIMITED Equity 5,365 3.74TECH MAHINDRA LIMITED Equity 3,113 2.17WIPRO LTD. Equity 1,706 1.19

Others (Other than G-Sec) 66,896 46.62 126,854 49.66

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseTitanium 3as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous YearMarket value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

15,771 21.44 25,188 34.88

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 20/07/2015) P/C 20/01/2015

Debt 3,997 5.43

AXIS BANK LIMITED Equity 691 0.94HDFC BANK Equity 2,939 4.00HOUSING DEVELOPMENT FINANCE CORPORATION Equity 2,574 3.50ICICI BANK LTD Equity 1,967 2.67INDUSIND BANK LTD Equity 909 1.24KOTAK MAHINDRA BANK LIMITED Equity 461 0.63PUNJAB NATIONAL BANK Equity 528 0.72STATE BANK OF INDIA Equity 1,705 2.32

Others (Other than G-Sec) 45,969 62.49 33,533 46.44

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Pension Nourish Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

27,428 21.21 25,009 18.77

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 30/11/2015)

Debt 5,047 3.90

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 2,021 1.56

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 2,039 1.58

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 1,945 1.50

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 29/06/2014)

Debt 10,000 7.73

9.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 3,026 2.34AXIS BANK LIMITED Equity 210 0.16FEDRAL BANK LTD Equity 157 0.12HDFC BANK Equity 835 0.65HOUSING DEVELOPMENT FINANCE CORPORATION Equity 686 0.53ICICI BANK LTD Equity 726 0.56INDUSIND BANK LTD Equity 69 0.05LIC HOUSING FINANCE LTD Equity 98 0.08PUNJAB NATIONAL BANK Equity 80 0.06STATE BANK OF INDIA Equity 355 0.27UNION BANK OF INDIA LTD. Equity 136 0.11

INFRASTRUCTURE FINANCE

13,416 10.38 17,998 13.51

10.70% IRFC NCD (MD 11/09/2023) Debt 3,241 2.5110.85% RECL LTD NCD (MD 14/08/2018) Debt 2,087 1.619.36% POWER FINANCE CORPN. LTD. NCD (MD 01/08/2021)

Debt 1,972 1.52

9.81% POWER FINANCE CORPORATION LTD (MD 07/10/2018)

Debt 6,048 4.68

RURAL ELECTRIFICATION CORPORATION LIMITED Equity 68 0.05

Others (Other than G-Sec) 33,213 25.68 42,425 31.84

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd.Pension Growth Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

78,089 21.40 66,943 17.87

10.15% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 14/03/2015) (F.V. 1 CR)

Debt 10,000 2.74

9.30% STATE BANK OF INDIA NCD (MD 16/03/2021) CALL 16/03/2016

Debt 9,844 2.70

9.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 21/05/2018)

Debt 9,846 2.70

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 17/09/2019)

Debt 9,400 2.58

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 24/05/2019)

Debt 9,900 2.71

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 10,000 2.74

AXIS BANK LIMITED Equity 1,132 0.31HDFC BANK Equity 5,017 1.37HOUSING DEVELOPMENT FINANCE CORPORATION Equity 4,217 1.16ICICI BANK LTD Equity 3,932 1.08INDUSIND BANK LTD Equity 773 0.21ORIENTAL BANK OF COMMERCE Equity 450 0.12PUNJAB NATIONAL BANK Equity 476 0.13STATE BANK OF INDIA Equity 2,334 0.64UNION BANK OF INDIA LTD. Equity 768 0.21

INFRASTRUCTURE FINANCE

45,169 12.38 55,193 14.73

8.60% POWER FINANCE CORPORATION LTD NCD (MD 07/08/2014)

Debt 2,987 0.82

9.02% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 19/11/2022)

Debt 19,298 5.29

9.40% NABARD NCD Sr XII-L (MD 13/09/2016) Debt 9,991 2.749.48% REC LTD. NCD (MD 10/08/2021) Debt 12,894 3.53

Others (Other than G-Sec) 116,687 31.98 143,676 38.35

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd.Pension Enrich Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

221,950 13.59 355,144 21.14

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 20,206 1.24

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 9,726 0.60

9.30% STATE BANK OF INDIA NCD (MD 16/03/2021) CALL 16/03/2016

Debt 13,092 0.80

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 30,000 1.84

AXIS BANK LIMITED Equity 9,170 0.56FEDRAL BANK LTD Equity 6,905 0.42HDFC BANK Equity 36,686 2.25HOUSING DEVELOPMENT FINANCE CORPORATION Equity 30,304 1.86ICICI BANK LTD Equity 31,852 1.95INDUSIND BANK LTD Equity 2,992 0.18LIC HOUSING FINANCE LTD Equity 4,368 0.27PUNJAB NATIONAL BANK Equity 3,394 0.21STATE BANK OF INDIA Equity 17,250 1.06UNION BANK OF INDIA LTD. Equity 6,005 0.37

INFRASTRUCTURE FINANCE

167,188 10.24 218,320 12.99

10.70% IRFC NCD (MD 11/09/2023) Debt 16,206 0.998.90% POWER FINANCE CORPORATION LTD (MD 18/03/2018)

Debt 19,584 1.20

9.02% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 19/11/2022)

Debt 19,298 1.18

9.15% Nat Cap Regional Planning NCD (MD 18/02/2019) P/C 18/02/16

Debt 14,932 0.91

9.24% RURAL ELECTRIFICATION CORPN. LTD. NCD (MD 17/10/2018)

Debt 29,638 1.81

9.81% POWER FINANCE CORPORATION LTD (MD 07/10/2018)

Debt 64,517 3.95

RURAL ELECTRIFICATION CORPORATION LIMITED Equity 3,013 0.18

Others (Other than G-Sec) 745,343 45.63 550,274 32.75

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseDiscuntinued Policy Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

3,936,501 82.38 1,443,783 69.89

10.01% BANK OF BARODA FD QUARTERLY COMP (MD 07/03/2015)

Debt 250,100 5.23

10.12% ADITYA BIRLA FINANCE LTD NCD (MD 11/12/2015)

Debt 10,062 0.21

9.10% CORPORATION BANK FD QTR COMP (MD 17/07/2014)

Debt 50,000 1.05

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 10,000 0.21

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 29/06/2014)

Debt 10,000 0.21

9.50% UNION BANK OF INDIA FD QUARTERLY COMP (MD 05/03/2016)

Debt 200,000 4.19

9.70% SUNDARAM FINANCE LTD. NCD (MD 15/10/2014)

Debt 4,999 0.10

9.75% BANK OF INDIA FD QUARTERLY COMP (MD 24/03/2015)

Debt 200,000 4.19

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 19/03/2015)

Debt 50,100 1.05

BANK OF INDIA CD (MD 06/03/2015) Debt 45,053 0.94CANARA BANK CD (MD 02/12/2014) Debt 235,917 4.94CANARA BANK CD (MD 19/03/2015) Debt 205,841 4.31CENTRAL BANK OF INDIA CD (MD 05/12/2014) Debt 235,370 4.93CENTRAL BANK OF INDIA CD (MD 15/01/2015) Debt 207,263 4.34CORPORATION BANK CD (MD 18/12/2014) Debt 234,829 4.91IDBI BANK LTD CD (MD 09/01/2015) Debt 233,342 4.88KOTAK MAHINDRA PRIME LTD CP (MD 16/04/2014) Debt 76,236 1.60ORIENTAL BANK OF COMMERCE CD (MD 02/03/2015)

Debt 230,565 4.82

ORIENTAL BANK OF COMMERCE CD (MD 07/10/2014)

Debt 179,542 3.76

PUNJAB NATIONAL BANK CD (MD 02/03/2015) Debt 298,951 6.26STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 183,951 3.85STATE BANK OF PATIALA CD (MD 04/09/2014) Debt 240,905 5.04SYNDICATE BANK CD (MD 27/11/2014) Debt 236,094 4.94TATA MOTORS FINANCE LTD. ZCB (MD 02/05/2015) Debt 46,959 0.98UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 26,325 0.55VIJAYA BANK CD (MD 29/12/2014) Debt 234,098 4.90

Others (Other than G-Sec) 535,541 11.21 4,880 0.24

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywisePure Equityas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous YearMarket value % holding Market value % holding

MANUFACTURE OF CHEMICAL PRODUCTS

8,737 17.39 2,848 15.62

ASIAN PAINTS LTD. Equity 3,732 7.43BAYER CROPSCIENCE LIMITED Equity 2,274 4.53HINDUSTAN UNILEVER LIMITED Equity 982 1.95RALLIS INDIA LIMITED Equity 1,749 3.48

MANUFACTURE OF PHARMACEUTICALS

6,685 13.30 2,327 12.76

CIPLA LIMITED FV 2 Equity 1,898 3.78DIVIS LABORATORIES LTD Equity 1,483 2.95LUPIN LIMITED Equity 1,717 3.42SUN PHARMACEUTICALS INDUSTRIES LTD Equity 1,586 3.16

Others (Other than G-Sec) 33,270 66.22 12,927 70.90

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseValue Momentumas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

33,403 24.20 8,328 18.58

BAJAJ HOLDINGS AND INVESTMENT LIMITED Equity 3,174 2.30BANK OF INDIA Equity 1,999 1.45CITY UNION BANK Equity 3,222 2.33FEDERAL BANK LTD Equity 4,395 3.18INDIAN BANK Equity 3,908 2.83JAMMU KASHMIR BANK LTD Equity 4,183 3.03KARNATAKA BANK LTD. Equity 2,350 1.70ORIENTAL BANK OF COMMERCE Equity 2,216 1.61PUNJAB NATIONAL BANK Equity 3,721 2.70UNION BANK OF INDIA LTD. Equity 4,234 3.07

ELECTRICITY, GAS AND STEAM SUPPLY

14,072 10.20 3,545 7.91

GAIL (INDIA) LIMITED Equity 2,672 1.94INDRAPRASTHA GAS LIMITED Equity 3,808 2.76NTPC LIMITED Equity 3,255 2.36POWER GRID CORPORATION OF INDIA LIMITED Equity 4,337 3.14

Others (Other than G-Sec) 80,096 58.03 26,806 59.82

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseLiquid Plusas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

218,039 76.45 82,873 73.62

10.05% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 30/01/2015)

Debt 10,000 3.51

11.25% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 04/09/2014)

Debt 10,000 3.51

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 10,000 3.51

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 13/07/2014)

Debt 10,000 3.51

9.75% CORPORATION BANK FD QTR COMP (MD 12/03/2015) (F.V.1CR)

Debt 20,000 7.01

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 20,000 7.01

AXIS BANK CD (MD 22/08/2014) Debt 19,224 6.74BANK OF INDIA CD (MD 06/03/2015) Debt 18,351 6.43CANARA BANK CD (MD 19/03/2015) Debt 23,892 8.38CENTRAL BANK OF INDIA CD (MD 15/01/2015) Debt 6,526 2.29JAMMU AND KASHMIR BANK CD ( MD 01/09/2014) Debt 7,700 2.70L AND T FINANCE LTD CP (MD 21/08/2014) Debt 19,166 6.72ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015)

Debt 9,175 3.22

PUNJAB NATIONAL BANK CD (MD 02/03/2015) Debt 18,363 6.44STATE BANK OF PATIALA CD (MD 01/12/2014) Debt 12,693 4.45UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 2,947 1.03

Others (Other than G-Sec) 46,624 16.35 18,962 16.84

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Fixed Interestas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,390,454 28.67 1,400,963 37.88

10.00% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 05/12/2014)

Debt 15,031 0.31

10.01% BANK OF BARODA FD QUARTERLY COMP (MD 07/03/2015)

Debt 250,100 5.16

10.05% BAJAJ FINANCE LIMITED NCD (MD 10/01/2017)

Debt 50,370 1.04

10.32% SUNDARAM FINANCE LTD. NCD (MD 13/08/2018)

Debt 50,643 1.04

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 1,019 0.02

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 19,453 0.40

9.40% EXPORT IMPORT BANK OF INDIA NCD (MD 14/08/2023)

Debt 98,579 2.03

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 13/07/2014)

Debt 20,000 0.41

9.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 21/05/2018)

Debt 41,355 0.85

9.67% CANARA BANK FD QUARTERLY COMP (MD 10/03/2015)

Debt 100,000 2.06

9.75% CORPORATION BANK FD QTR COMP (MD 26/03/2015) (F.V. 1CR)

Debt 150,000 3.09

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 10/02/2020)

Debt 9,900 0.20

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 18/09/2019)

Debt 9,900 0.20

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 19/09/2019)

Debt 9,900 0.20

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 23/09/2019)

Debt 9,900 0.20

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 24/09/2019)

Debt 9,900 0.20

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 25/09/2019)

Debt 9,900 0.20

9.76% CANARA BANK FD QUARTERLY COMP (MD 13/03/2015)

Debt 100,000 2.06

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 18/03/2015)

Debt 50,100 1.03

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 21/03/2015)

Debt 50,100 1.03

9.90% TATA SONS LTD. NCD (MD 20/03/2024) Debt 51,021 1.059.95% L AND T FINANCE LIMITED NCD (MD 28/10/2016)

Debt 30,131 0.62

9.95% STATE BANK OF INDIA NCD (MD 16/03/2026) CALL 16/03/2021

Debt 113,235 2.33

AXIS BANK CD (MD 22/08/2014) Debt 76,704 1.58TATA MOTORS FINANCE LTD. ZCB (MD 02/05/2015) Debt 63,214 1.30

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Fixed Interestas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

ELECTRICITY, GAS AND STEAM SUPPLY

485,854 10.02 307,349 8.31

7.93% POWER GRID CORPORATION NCD (MD 20/05/2019) [C]

Debt 30,892 0.64

7.93% POWER GRID CORPORATION NCD (MD 20/05/2021) [E]

Debt 45,755 0.94

7.93% POWER GRID CORPORATION NCD (MD 20/05/2022) [F]

Debt 45,355 0.94

8.85% NHPC LTD NCD (MD 11/02/2021) (SR R2) Debt 48,105 0.998.85% NHPC LTD NCD (MD 11/02/2022) (SR R2) Debt 47,918 0.999.20% POWER GRID CORPN. OF INDIA LTD. NCD (MD 12/03/2020)

Debt 29,443 0.61

9.25% POWER GRID CORPORATION NCD (MD 26/12/2019)

Debt 24,586 0.51

9.25% POWER GRID CORPORATION NCD (MD 26/12/2020)

Debt 29,443 0.61

9.35% POWER GRID CORPORATION NCD (MD 29/08/2018)

Debt 84,322 1.74

9.64% POWER GRID CORPORATION NCD (MD 31/05/2021)

Debt 100,038 2.06

Others (Other than G-Sec) 886,485 18.28 402,903 10.89

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Bondas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,077,023 47.07 1,267,748 57.68

10.05% BAJAJ FINANCE LIMITED NCD (MD 10/01/2017)

Debt 50,370 2.20

11.25% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 04/09/2014)

Debt 20,000 0.87

8.83% EXPORT IMPORT BANK OF INDIA NCD (MD 09/01/2023)

Debt 38,154 1.67

9.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 29,617 1.29

9.15% AXIS BANK NCD (MD 31/12/2022) Debt 48,612 2.129.15% ICICI Bank Ltd NCD (MD 31/12/2022) Debt 68,056 2.979.40% EXPORT IMPORT BANK OF INDIA NCD (MD 14/08/2023)

Debt 49,289 2.15

9.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 21/05/2018)

Debt 19,693 0.86

9.67% CANARA BANK FD QUARTERLY COMP (MD 10/03/2015)

Debt 100,000 4.37

9.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 165,397 7.239.75% BANK OF INDIA FD QUARTERLY COMP (MD 25/03/2015)

Debt 200,000 8.74

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 11/02/2020)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 12/02/2020)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 13/02/2020)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 14/02/2020)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 20/05/2019)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 20/09/2019)

Debt 9,900 0.43

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 12/03/2018)

Debt 9,900 0.43

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 18/03/2015)

Debt 50,100 2.19

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 21/03/2015)

Debt 100,200 4.38

9.97% HDB FINANCIAL SERVICES LIMITED NCD (MD 28/12/2018)

Debt 50,741 2.22

AXIS BANK CD (MD 22/08/2014) Debt 17,494 0.76

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Bondas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

HOUSING FINANCE SERVICES

337,810 14.76 NA NA

10.05% CAN FIN HOMES LTD. NCD MD (13/01/2017) Debt 50,372 2.2010.05% CAN FIN HOMES LTD. NCD MD (23/01/2017) Debt 50,380 2.2010.18% LIC HOUSING FINANCE LTD NCD (MD 19/09/2016)

Debt 58,899 2.57

8.60% LIC HOUSING FINANCE LTD NCD (MD 20/06/2018)

Debt 48,376 2.11

9.18% HDFC LTD NCD (MD 12/02/2018) Debt 54,345 2.389.57% LIC HOUSING FINANCE LTD. NCD (MD 07/09/2017)

Debt 30,121 1.32

9.70% LIC HOUSING FINANCE LTD. NCD (MD 11/06/2017)

Debt 20,151 0.88

9.75% HDFC LTD. NCD MD (10/10/2016) Debt 25,167 1.10

ELECTRICITY, GAS AND STEAM SUPPLY

333,905 14.59 152,534 6.94

8.54% NUCLEAR POWER CORPORATION OF INDIA LIMITED (MD 15/03/2023)

Debt 94,988 4.15

8.64% POWER GRID NCD MD (08/07/2015) Debt 7,429 0.328.65% NTPC Ltd NCD (MD 04/02/2019) Debt 21,259 0.938.73% Power Grid Corporation (11/10/2015) Debt 49,493 2.168.84 % POWER GRID CORPORATION MD(21/10/16) Debt 18,506 0.818.84% POWER GRID CORPN. OF INDIA LTD. NCD (MD 21/10/2019)

Debt 19,343 0.85

9.25% POWER GRID NCD MD (26/12/2017) Debt 19,863 0.879.35% POWER GRID CORPORATION NCD (MD 29/08/2020)

Debt 49,323 2.16

9.47% Power Grid Corporation Ltd NCD (MD 31/03/2022)

Debt 18,598 0.81

9.64% POWER GRID CORPORATION NCD (MD 31/05/19)

Debt 35,102 1.53

Others (Other than G-Sec) 438,834 19.18 390,780 17.78

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Money Marketas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,975,295 58.64 483,361 47.33

10.01% BANK OF BARODA FD QUARTERLY COMP (MD 06/03/2015)

Debt 250,100 7.42

10.15% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 14/03/2015) (F.V. 1 CR)

Debt 30,000 0.89

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 30,000 0.89

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 11/07/2014)

Debt 30,000 0.89

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 13/07/2014)

Debt 160,000 4.75

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 29/06/2014)

Debt 50,000 1.48

9.75% CORPORATION BANK FD QTR COMP (MD 14/03/2015) (F.V.1CR)

Debt 50,000 1.48

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 18/03/2015)

Debt 250,500 7.44

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 70,000 2.08

9.95% BANK OF INDIA FD QUARTERLY COMP (MD 05/03/2015) (FV 10 CRORES)

Debt 100,000 2.97

9.95% CORPORATION BANK FD QTR COMP (MD 23/02/2015) (FV 20CR)

Debt 200,000 5.94

AXIS BANK CD (MD 22/08/2014) Debt 11,534 0.34BANK OF INDIA CD (MD 06/03/2015) Debt 160,576 4.77JAMMU AND KASHMIR BANK CD ( MD 01/09/2014) Debt 30,608 0.91L AND T FINANCE LTD CP (MD 07/10/2014) Debt 190,419 5.65L AND T FINANCE LTD CP (MD 21/08/2014) Debt 47,915 1.42ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015) Debt 91,752 2.72ORIENTAL BANK OF COMMERCE CD (MD 07/10/2014) Debt 59,211 1.76PUNJAB NATIONAL BANK CD (MD 02/03/2015) Debt 138,640 4.12STATE BANK OF MYSORE CD (MD 15/09/2014) Debt 24,040 0.71

MUTUAL FUND 357,596 10.62 67,857 6.64

BARODA PIONEER LIQUID FUND - PLAN B (DIRECT) - GROWTH OPTION

Debt 56,157 1.67

BIRLA SUN LIFE CASH PLUS - DIRECT PLAN - GROWTH

Debt 138,141 4.10

ICICI PRUDENTIAL LIQUID - DIRECT PLAN - GROWTH Debt 51,006 1.51RELIANCE LIQUIDITY FUND - DIRECT PLAN GROWTH OPTION - GROWTH

Debt 56,127 1.67

TATA LIQUID FUND - DIRECT PLAN - GROWTH Debt 56,165 1.67

Others (Other than G-Sec) 584,382 17.35 139,553 13.67

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Short Term Debtas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

472,245 72.76 147,953 58.00

10.10% HDB FINANCIAL SERVICES LIMITED NCD (MD 30/11/2015)

Debt 15,141 2.33

10.12% ADITYA BIRLA FINANCE LTD NCD (MD 11/12/2015)

Debt 20,125 3.10

10.15% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 14/03/2015) (F.V. 1 CR)

Debt 20,000 3.08

8.80% HDB FINANCIAL SERVICES LIMITED NCD (MD 17/05/2016)

Debt 13,838 2.13

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 50,000 7.70

9.75% CORPORATION BANK FD QTR COMP (MD 12/03/2015) (F.V.1CR)

Debt 60,000 9.24

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 10/09/2019)

Debt 9,900 1.53

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 15/05/2019)

Debt 9,900 1.53

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 19/03/2015)

Debt 50,100 7.72

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 40,000 6.16

9.95% L AND T FINANCE LIMITED NCD (MD 28/10/2016)

Debt 20,087 3.09

AXIS BANK CD (MD 22/08/2014) Debt 19,224 2.96JAMMU AND KASHMIR BANK CD (MD 01/09/2014) Debt 57,751 8.90L AND T FINANCE LTD CP (MD 07/10/2014) Debt 28,563 4.40ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015)

Debt 45,876 7.07

TATA MOTORS FINANCE LTD. ZCB (MD 02/05/2015) Debt 11,740 1.81

Others (Other than G-Sec) 155,360 23.94 94,334 36.98

Annexures to Schedule 16

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Secureas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,957,954 26.73 2,258,237 27.57

10.00% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD NCD (MD 05/12/2014)

Debt 5,010 0.07

10.01% BANK OF BARODA FD QUARTERLY COMP (MD 05/03/2015)

Debt 250,100 3.41

10.08% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 22/10/2014)

Debt 25,010 0.34

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 23,237 0.32

10.20% SUNDARAM FINANCE LTD. NCD (MD 21/07/2014)

Debt 40,019 0.55

10.25% KOTAK MAHINDRA PRIME LTD. NCD (MD 05/06/2014)

Debt 20,013 0.27

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 53,005 0.72

5.90% HDFC Bank Ltd NCD (MD 04/05/2014) Debt 59,816 0.828.8% State Bank of Hyderabad NCD (MD 29/04/2016) Debt 8,904 0.128.85% TATA SONS LTD. NCD (MD 02/05/2023) Debt 33,403 0.469.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 9,872 0.13

9.05% SBI Perpetual NCD (Call- 27/01/2020) Step Up Rate 9.55%

Debt 48,663 0.66

9.10% HDFC BANK LTD. NCD CALL 28/12/2017 (MD 28/12/2022)

Debt 58,188 0.79

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 15,562 0.21

9.15% ICICI Bank Ltd NCD (MD 31/12/2022) Debt 97,223 1.339.15% State Bank of Patiala PERP NCD Call 18/01/2020 StepUp 9.65

Debt 29,375 0.40

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 11/07/2014)

Debt 250,000 3.41

9.70% SUNDARAM FINANCE LTD. NCD (MD 15/10/2014)

Debt 49,988 0.68

9.75% CORPORATION BANK FD QTR COMP (MD 14/03/2015) (F.V.1CR)

Debt 80,000 1.09

9.75% L AND T FINANCE LIMITED NCD (MD 08/10/2014)

Debt 46,998 0.64

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 10/05/2019)

Debt 9,900 0.14

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 13/05/2019)

Debt 9,900 0.14

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 13/09/2019)

Debt 9,900 0.14

9.75% STATE BANK OF BIKANER AND JAIPUR FD QTR COMP (MD 14/05/2019)

Debt 9,900 0.14

9.76% CANARA BANK FD QUARTERLY COMP (MD 13/03/2015)

Debt 100,000 1.37

9.80% STATE BANK OF INDIA NCD (MD 30/06/2016) Debt 1,008 0.019.99% CORPORATION BANK FD QTR COMP (MD 07/03/2015)

Debt 200,000 2.73

AXIS BANK LIMITED Equity 26,517 0.36FEDRAL BANK LTD Equity 11,338 0.15HDFC BANK Equity 96,722 1.32HOUSING DEVELOPMENT FINANCE CORPORATION Equity 82,500 1.13ICICI BANK LTD Equity 80,764 1.10INDUSIND BANK LTD Equity 7,693 0.11KOTAK MAHINDRA PRIME LTD CP (MD 16/04/2014) Debt 23,419 0.32

Annexures to Schedule 16

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Annual Report 2013-14

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Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Secureas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

STATE BANK OF INDIA Equity 35,924 0.49

STATE BANK OF MYSORE CD (MD 15/09/2014) Debt 48,080 0.66

Others (Other than G-Sec)

2,910,569 39.74 3,452,122 42.14

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Stableas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

415,322 17.35 701,779 27.18

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 20,206 0.84

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 13,466 0.56

9.10% CORPORATION BANK FD QTR COMP (MD 07/08/2014)

Debt 50,000 2.09

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 10,000 0.42

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 11/07/2014)

Debt 20,000 0.84

9.75% CORPORATION BANK FD QTR COMP (MD 14/03/2015) (F.V.1CR)

Debt 60,000 2.51

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 21/03/2015)

Debt 50,100 2.09

AXIS BANK LIMITED Equity 14,865 0.62FEDRAL BANK LTD Equity 6,359 0.27HDFC BANK Equity 54,257 2.27HOUSING DEVELOPMENT FINANCE CORPORATION Equity 46,276 1.93ICICI BANK LTD Equity 45,307 1.89INDUSIND BANK LTD Equity 4,306 0.18STATE BANK OF INDIA Equity 20,180 0.84

INFRASTRUCTURE FINANCE

284,315 11.88 465,594 18.03

10.85% RECL Ltd NCD (MD 14/08/2018) Debt 26,090 1.0911.25% Power Finance Corporation Ltd NCD (MD 28/11/2018)

Debt 20,150 0.84

8.60% Power Finance Corporation Ltd NCD (MD 07/08/2014)

Debt 39,827 1.66

8.65% RECL Ltd NCD (MD 15/01/2019) Debt 94,666 3.968.70% Power Finance Corpn Ltd NCD (MD 15/01/2020)

Debt 9,599 0.40

9.33% NABARD NCD (MD 12/06/2017) Debt 24,943 1.049.36% POWER FINANCE CORPN. LTD. NCD (MD 01/08/2021)

Debt 986 0.04

9.40% NABARD NCD Sr XII-L (MD 13/09/2016) Debt 29,972 1.259.57% IRFC NCD (MD 31/05/2021) Debt 13,115 0.559.61% POWER FINANCE CORPORATION LTD (MD 29/06/2021)

Debt 24,967 1.04

Others (Other than G-Sec) 983,820 41.11 789,745 30.59

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Birla Sun Life Insurance

187

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Growthas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

528,593 20.93 760,744 31.67

10.15% KOTAK MAHINDRA PRIME LTD NCD (MD 10/02/2017)

Debt 35,360 1.40

5.90% HDFC Bank Ltd NCD (MD 04/05/2014) Debt 34,893 1.388.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 12,504 0.50

9.05% SBI Perpetual NCD (Call- 27/01/2020) Step Up Rate 9.55%

Debt 25,305 1.00

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 07/07/2014)

Debt 10,000 0.40

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 11/07/2014)

Debt 20,000 0.79

9.75% CORPORATION BANK FD QTR COMP (MD 14/03/2015) (F.V.1CR)

Debt 50,000 1.98

9.89% IDBI BANK LTD FD QUARTERLY COMP (MD 21/03/2015)

Debt 50,100 1.98

AXIS BANK LIMITED Equity 22,614 0.90FEDRAL BANK LTD Equity 9,640 0.38HDFC BANK Equity 82,492 3.27HOUSING DEVELOPMENT FINANCE CORPORATION Equity 70,374 2.79ICICI BANK LTD Equity 68,886 2.73INDUSIND BANK LTD Equity 6,409 0.25STATE BANK OF INDIA Equity 30,016 1.19

Others (Other than G-Sec) 1,334,310 52.84 1,218,205 50.71

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Growth Advantage Fund as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

40,056 19.75 55,242.66 29.32

8.83% EXPORT IMPORT BANK OF INDIA NCD (MD 09/01/2023)

Debt 9,539 4.70

8.95% HDFC BANK LTD. NCD CALL 31/10/2017 (MD 31/10/2022)

Debt 2,886 1.42

AXIS BANK LIMITED Equity 2,153 1.06FEDRAL BANK LTD Equity 918 0.45HDFC BANK Equity 7,844 3.87HOUSING DEVELOPMENT FINANCE CORPORATION Equity 6,698 3.30ICICI BANK LTD Equity 6,558 3.23INDUSIND BANK LTD Equity 610 0.30STATE BANK OF INDIA Equity 2,852 1.41

Others (Other than G-Sec) 111,945 55.19 104,841 55.64

Annexures to Schedule 16

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Annual Report 2013-14

188

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Inc. Advantageas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous YearMarket value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

91,125 26.10 16,745 31.81

10.05% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 30/01/2015)

Debt 10,000 2.86

9.15% EXPORT IMPORT BANK OF INDIA NCD (MD 05/09/2022)

Debt 19,453 5.57

9.15% ICICI Bank Ltd NCD (MD 31/12/2022) Debt 972 0.289.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 30,255 8.669.97% HDB FINANCIAL SERVICES LIMITED NCD (MD 28/12/2018)

Debt 30,445 8.72

Others (Other than G-Sec) 101,215 28.99 2,717 5.16

Annexures to Schedule 16

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Birla Sun Life Insurance

189

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Short Term Debt 2as on 31st March 2014(Amount in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

128,551 38.34 311,077 72.54

10.15% DEVELOPMENT CREDIT BANK QTR CMPD FD (MD 14/03/2015) (F.V. 1 CR)

Debt 10,000 2.98

12.65% CHOLAMANDALAM INVT AND FIN CO LTD NCD (MD 24/12/2014)

Debt 2,039 0.61

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 29/06/2014)

Debt 20,000 5.96

9.70% SUNDARAM FINANCE LTD. NCD (MD 15/10/2014)

Debt 19,995 5.96

9.75% STATE BANK OF BIKANER AND JAIPUR FD QUARTERLY COMP (MD 11/09/2018)

Debt 9,900 2.95

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 20,000 5.96

CENTRAL BANK OF INDIA CD (MD 15/01/2015)

Debt 18,647 5.56

STATE BANK OF MYSORE CD (MD 15/09/2014)

Debt 14,424 4.30

TATA MOTORS FINANCE LTD. ZCB (MD 02/05/2015)

Debt 13,546 4.04

INFRASTRUCTURE FINANCE

49,139 14.66 5,053 1.18

9.46% POWER FINANCE CORPN. LTD. NCD (MD 02/05/2015)

Debt 25,036 7.47

9.63% POWER FINANCE CORPN. LTD. NCD (MD 15/12/2014)

Debt 5,007 1.49

9.70% NABARD NCD Sr XII-D (MD 06/06/2016) Debt 19,095 5.70

HOUSING FINANCE SERVICES

47,204 14.08 NA NA

10.18% LIC HOUSING FINANCE LTD NCD (MD 19/09/2016)

Debt 13,202 3.94

9.30 HDFC LTD. NCD (MD 04/10/2017) Debt 14,945 4.469.62% LIC HOUSING FINANCE LTD. NCD (MD 03/08/2015)

Debt 5,009 1.49

9.80% LIC HOUSING FINANCE LTD NCD (MD 10/08/2014)

Debt 3,998 1.19

9.85% HDFC Ltd NCD (MD 28/05/15) Debt 10,050 3.00

Others (Other than G-Sec)

78,825 23.51 102,691 23.95

Annexures to Schedule 16

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Annual Report 2013-14

190

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Growth 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

3,753 58.25 1,439 23.71

9.74% TATA SONS LTD. NCD (MD 13/01/2024) Debt 3,026 46.95AXIS BANK LIMITED Equity 54 0.84FEDRAL BANK LTD Equity 25 0.39HDFC BANK Equity 207 3.21HOUSING DEVELOPMENT FINANCE CORPORATION Equity 177 2.74ICICI BANK LTD Equity 179 2.78INDUSIND BANK LTD Equity 17 0.26STATE BANK OF INDIA Equity 69 1.07

Others (Other than G-Sec) 2,562 39.76 1,882 31.02

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Money Market 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

1,990 87.96 1,131 54.13

9.00% CORPORATION BANK FD QTR COMP (MD 26/03/2015) (F.V. 1LAC)

Debt 200 8.84

9.25% BANK OF INDIA FD QUARTERLY COMP (MD 26/03/2015) (F.V. 1LAC)

Debt 200 8.84

CENTRAL BANK OF INDIA CD (MD 05/12/2014) Debt 188 8.33CENTRAL BANK OF INDIA CD (MD 15/01/2015) Debt 186 8.24JAMMU AND KASHMIR BANK CD (MD 01/09/2014) Debt 193 8.51ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015)

Debt 184 8.11

PUNJAB NATIONAL BANK CD (MD 02/03/2015) Debt 459 20.29STATE BANK OF PATIALA CD (MD 19/03/2015) Debt 184 8.12UNITED BANK OF INDIA CD (MD 13/06/2014) Debt 196 8.68

Others (Other than G-Sec) 36 1.58 NIL NIL

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Fixed Interest 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

HOUSING FINANCE SERVICES

29,304 93.13 N/A N/A

9.23% LIC HOUSING FINANCE LTD NCD (MD 13/12/2022)

Debt 29,304 93.13

Others (Other than G-Sec) 1,243 3.95 16 0.40

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Birla Sun Life Insurance

191

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Stable 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

NA NA 29 10.57

Others (Other than G-Sec) 57 20.59

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseGr. Secure 2as on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

21,563 21.26 NA NA

8.80% HDB FINANCIAL SERVICES LIMITED NCD (MD 17/05/2016)

Debt 6,919 6.82

9.90% UNION BANK OF INDIA FD QUARTERLY COMP (MD 11/03/2015) (F.V. 1CR)

Debt 10,000 9.86

AXIS BANK LIMITED Equity 359 0.35FEDRAL BANK LTD Equity 155 0.15HDFC BANK Equity 1,320 1.30HOUSING DEVELOPMENT FINANCE CORPORATION Equity 1,127 1.11ICICI BANK LTD Equity 1,099 1.08INDUSIND BANK LTD Equity 104 0.10STATE BANK OF INDIA Equity 479 0.47

Others (Other than G-Sec) 36,096 35.59 NA NA

Annexures to Schedule 16

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Annual Report 2013-14

192

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Income Advantage Guaranteedas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

39,117 26.03 NA NA

10.00% HDB FINANCIAL SERVICES LIMITED NCD (MD 15/02/2019)

Debt 5,082 3.38

9.00% EXPORT IMPORT BANK OF INDIA NCD (MD 10/01/2019)

Debt 8,885 5.91

9.50% STATE BANK OF TRAVANCORE FD QTR COMP (MD 13/07/2014)

Debt 10,000 6.65

BANK OF INDIA CD (MD 06/03/2015) Debt 4,588 3.05CENTRAL BANK OF INDIA CD (MD 15/01/2015) Debt 466 0.31ORIENTAL BANK OF COMMERCE CD (MD 03/03/2015)

Debt 6,423 4.27

PUNJAB NATIONAL BANK CD (MD 02/03/2015) Debt 3,673 2.44

INFRASTRUCTURE FINANCE

19,905 13.24 NA NA

10.70% IRFC NCD (MD 11/09/2023) Debt 5,402 3.598.84% POWER FINANCE CORPORATION Ltd NCD (MD 04/03/2023)

Debt 9,544 6.35

9.48% REC LTD. NCD (MD 10/08/2021) Debt 4,959 3.30

Others (Other than G-Sec) 32,386 21.55 NA NA

Appendix 3 to Annexure 3ADisclosure of Investment - IndustrywiseInd. Maximiser Guaranteedas on 31st March 2014(Amounts in thousands of Indian Rupees)

Industry SecurityNature of security

Current Year Previous Year

Market value % holding Market value % holding

FINANCIAL AND INSURANCE ACTIVITIES

959 18.01 NA NA

AXIS BANK LIMITED Equity 244 4.58HDFC BANK Equity 194 3.64HOUSING DEVELOPMENT FINANCE CORPORATION Equity 194 3.65ICICI BANK LTD Equity 326 6.13

COMPUTER PROGRAMMING, CONSULTANCY

910 17.09 NA NA

HCL TECHNOLOGIES LTD Equity 241 4.52INFOSYS LIMITED Equity 430 8.08TATA CONSULTANCY SERVICES LIMITED Equity 239 4.49

MANUFACTURE OF TOBACCO PRODUCTS

599 11.26 NA NA

ITC LTD Equity 599 11.26

Others (Other than G-Sec) 2,495 46.88 NA NA

Annexures to Schedule 16

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Birla Sun Life Insurance

193

Appendix 4 to Annexure 3ANAV Highest, Lowest and Closing as on 31st March 2014

INDIVIDUAL LIFE

Fund NameHighest Lowest Closing

Current Year Previous Year Current Year Previous Year Current Year Previous Year

Ind. Assure 21.4252 19.6735 19.6772 17.8617 21.4252 19.6735Ind. Income Advantage 17.4881 16.7488 16.2715 15.0294 17.4881 16.7488Ind. Protector 27.7441 26.3728 25.3777 23.8478 27.7441 26.3006Ind. Builder 34.7208 32.5791 31.2487 29.0150 34.7208 32.3124Ind. Balancer 22.2793 20.9248 19.8326 18.5640 22.2793 20.6290Ind. Enhancer 40.9964 38.6219 36.4803 34.1816 40.9964 38.0531Ind. Creator 31.9569 30.0218 27.4030 25.5431 31.9569 28.8380Ind. Magnifier 32.5602 30.0650 26.2362 24.0915 32.5602 28.1248Ind. Maximiser 16.2087 15.4474 12.5111 12.0049 16.2087 13.9946Ind. Multiplier 14.3078 13.2300 10.1405 10.5764 14.3078 11.7643Super 20 16.8527 15.0679 13.0525 11.8169 16.8525 14.1376Ind. Platinum Plus 1 13.4323 12.6051 11.2162 10.5001 13.4323 11.9363Ind. Platinum Plus 2 19.1548 17.9908 15.7910 14.7977 19.1548 16.9101Ind. Platinum Plus 3 14.7512 13.8441 12.1119 11.2858 14.7512 13.0006Ind. Platinum Plus 4 13.1289 12.3631 10.7247 10.0546 13.1289 11.5742Ind. Platinum Premier 13.0504 12.2310 10.5941 9.8706 13.0504 11.4481Ind. Platinum Advantage 11.4021 10.5161 9.0642 8.3264 11.4021 9.7517Ind. Foresight FP 11.5904 11.0498 9.7995 8.9626 11.5904 10.5103Ind. Foresight SP 12.3809 11.3610 9.8923 8.9531 12.3808 10.5882Titanium Plus 1 13.0666 12.1870 10.9775 10.1846 13.0666 11.5208Titanium Plus 2 12.8049 11.9350 10.7587 10.0012 12.8049 11.2983Titanium Plus 3 11.7245 10.8951 10.1111 9.3906 11.7245 10.4632Ind. Liquid Plus 11.7091 10.7893 10.7916 10.0094 11.7091 10.7893Ind. Pure Equity 13.4190 11.6691 10.7330 9.3611 13.4190 11.0827Ind. Value Momentum 11.9209 12.2349 8.7025 9.4815 11.9209 10.5449IPP - Nourish 23.0002 21.9894 21.0725 19.9292 23.0002 21.9234IPP - Growth 28.4976 26.7368 25.6343 23.9695 28.4976 26.4637IPP - Enrich 32.9574 31.3153 28.9914 27.3531 32.9574 30.5162Discontinued Policy Fund 12.8765 11.9046 11.9072 10.9636 12.8765 11.9046Income Advantage Guaranteed Fund 10.2266 NA 10.0000 NA 10.2266 NAMaximiser Guaranteed Fund 10.6214 NA 9.7839 NA 10.6202 NALinked Discontinued Policy Fund 10.0000 NA 10.0000 NA 10.0000 NAPension Discontinued Policy Fund 10.0000 NA 10.0000 NA 10.0000 NA

GROUP LIFE

Fund NameHighest Lowest Closing

Current Year Previous Year Current Year Previous Year Current Year Previous YearGr. Fixed Interest Plan I 25.3832 23.8430 23.5356 21.1339 25.3832 23.8430Gr. Gilt Plan I 19.1366 17.9979 16.7726 15.9557 18.0970 17.9285Gr. Bond Plan I 22.0728 20.6371 20.4029 18.3915 22.0728 20.6371Gr. Money Market Plan I 22.7485 20.8659 20.8698 19.0204 22.7485 20.8659Gr. Short Term Debt Plan I 15.7302 14.5207 14.5237 13.0981 15.7302 14.5207Gr. Capital Protection Plan I** 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000Gr. Floating Rate Plan I*** 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000Gr. Secure Plan I 35.9783 34.0554 32.3879 30.4251 35.9783 33.7278Gr. Stable Plan I 48.0668 45.4722 42.2208 39.5690 48.0668 44.3704Gr. Growth Plan I 56.4890 53.4334 48.1755 45.3228 56.4890 51.3620Gr. Growth Advantage 19.9029 18.8072 16.6391 15.6019 19.9029 17.8788Gr. Income Advantage 14.1341 13.4668 12.9583 11.9873 14.0944 13.3906Gr. Growth Maximsier**** 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000Gr. Bond 2 ^ 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000Gr. Fixed Interest 2 12.7033 11.6295 11.2384 10.3746 12.6989 11.6280Gr. Growth 2 13.3946 12.4757 11.2198 10.3710 13.3946 12.0406Gr. Money Market 2 12.3125 11.2909 11.2941 10.3284 12.3125 11.2909Gr. Secure 2 10.2282 10.0000 9.1159 10.0000 10.2282 10.0000Gr. Short Term Debt 2 12.7407 11.6359 11.6386 10.3182 12.7407 11.6359Gr. Stable 2 12.8823 11.8951 11.3775 10.4649 12.8823 11.6834

**The Group Capital Protection Fund became a dormat fund on 12th August 2008 on account of no units. ***The Group Floating Fund became a dormat fund on 12th October 2009 on account of no units. **** These funds do not have any units since their inception.^The Group Bond 2 Fund became a dormat fund on 31st March 2012 on account of no units.

Annexures to Schedule 16

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for the year ended March 31, 2014

Annual Report 2013-14

194

Appendix 6 to Annexure 3AStatement showing Ratio of Gross Income (Including Unrealised Gain/Loss) to Average Daily Net Assetsas on 31st March 2014(Amounts in thousands of Indian Rupees)

A Income from Investment ULIP Assets Current Year Previous Year

1 Interest, Dividend & Rent - Gross 9,714,547 9,166,151

2 Profit on Sale/ Redemption of Investments 10,519,475 11,029,119

3 (Loss on Sale/ Redemption of Investments) (7,630,456) (4,670,303)

4 Other Income / (Expense) – –

Sub Total 12,603,566 15,524,967

B Unrealized Gain / (Loss) 10,208,794 3,385,269

C Total (A+B) 22,812,360 18,910,236

D Average Daily AUM of the ULIP Funds 194,646,722 188,962,931

E Ratio of Gross Income to Average Daily Net Assets (%) 12% 10%

Appendix 5 to Annexure 3AAnnualised Expense Ratio to Average Daily Assets of the Fundas on 31st March 2014(Amounts in thousands of Indian Rupees)

Particulars Current Year Previous Year

Management Fees for the Period (inclusive of service tax) 2,812,405 2,744,927

Average Daily AUM of the ULIP funds 194,646,722 188,962,931

Annualised Expense Ratio to Average daily AUM (%) 1.44% 1.45%

Annexures to Schedule 16

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for the year ended March 31, 2014

Birla Sun Life Insurance

195

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2)(2

3,67

5)25

,846

(16,

317)

GRA

ND T

OTAL

21

92,

640

(77,

174)

33,1

61(4

5,33

0)4,

621

59,4

8756

,088

10,5

407,

796

1,81

2,61

51,

418,

372

251,

488

74,2

311,

371,

436

531,

263

2,80

4,28

925

7,54

1

Annexures to Schedule 16

Page 197: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

196

Appe

ndix

7 to

Ann

exur

e 3A

Fu

nd W

ise

Disc

losu

re o

f App

reci

atio

n an

d/or

(Dep

reci

atio

n) in

val

ue o

f Inv

estm

ent s

egre

gate

d Cl

ass

Wis

e as

on

31st

Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

Indi

an R

upee

s)

Part

icul

ars

Ind.

Mul

tiplie

rSu

per 2

0In

d. P

latin

um P

lus

1In

d. P

latin

um

Plus

2In

d. P

latin

um P

lus

3In

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Prem

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Ind.

Pla

tinum

Ad

vant

age

Ind.

For

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ht F

P

Cur

rent

Ye

ar

Prev

ious

Ye

ar C

urre

nt

Year

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us

Year

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nt

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us

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us

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ar

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nt

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us

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rent

Ye

ar

Prev

ious

Ye

ar

App

rove

d In

vest

men

ts

Gov

ernm

ent B

onds

––

–(2

,242

)7,

133

(2,1

80)

10,7

14(5

,240

)9,

155

(1,7

84)

5,82

1(6

,669

)2,

933

(449

)1,

077

(39,

459)

6,20

9

Cor

pora

te B

onds

––

–(7

,528

)92

(8,0

01)

2,03

1(9

,717

)2,

873

(3,1

38)

–(4

01)

(198

)(6

,121

)(2

,402

)(1

3,04

4)41

2

Infra

stru

ctur

e Bo

nds

436

––

–(1

5,70

0)53

1(1

1,22

2)10

,217

(5,7

10)

7,31

2(1

3,59

6)(2

47)

(11,

014)

6,94

7(6

,211

)3,

643

(70,

059)

470

Equ

ity

320,

834

(256

,768

)43

9,64

913

4,86

241

3,96

613

8,93

580

8,20

229

9,07

41,

049,

307

369,

490

808,

737

251,

875

1,36

0,91

236

8,38

21,

442,

664

241,

015

1,37

3,23

124

0,77

9

Pre

fere

nce

Shar

es

––

––

1,16

6–

2,28

0–

4,81

8–

3,77

9–

6,57

2–

4,24

6–

7,42

4–

Mon

ey M

arke

t –

––

––

––

––

––

––

––

––

Mut

ual F

unds

––

––

––

––

––

––

––

––

Tot

al

321,

270

(256

,768

)43

9,64

913

4,86

238

9,66

214

6,69

178

9,07

932

2,03

61,

033,

458

388,

830

793,

998

257,

449

1,34

9,40

037

8,06

41,

434,

129

243,

333

1,25

8,09

324

7,87

0

Oth

er In

vest

men

ts

Cor

pora

te B

onds

––

––

––

––

––

––

––

––

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stru

ctur

e Bo

nds

––

––

––

––

––

––

––

––

––

Equ

ity

33,5

56(3

0,84

1)–

–(3

,282

)(1

3,02

7)(5

,601

)(2

3,90

5)(3

,220

)(3

9,17

4)(2

,063

)(2

9,64

9)(3

,266

)(4

4,04

8)(6

,502

)(2

7,25

8)(6

,964

)(3

0,68

8)

Pre

fere

nce

Shar

es

––

––

––

––

––

––

––

––

––

Mon

ey M

arke

t –

––

––

––

––

––

––

––

––

Mut

ual F

unds

97

514

176

9210

214

717

835

36

193

1390

5183

119

712

829

014

4

Tot

al

33,6

53(3

0,32

7)17

692

(3,1

80)

(12,

880)

(5,4

23)

(23,

552)

(3,2

14)

(38,

981)

(2,0

50)

(29,

559)

(3,2

15)

(43,

217)

(6,3

05)

(27,

130)

(6,6

74)

(30,

544)

GRA

ND T

OTAL

35

4,92

3(2

87,0

95)

439,

825

134,

954

386,

482

133,

811

783,

656

298,

484

1,03

0,24

434

9,84

979

1,94

822

7,89

01,

346,

185

334,

847

1,42

7,82

421

6,20

31,

251,

419

217,

326

Annexures to Schedule 16

Page 198: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

197

Appe

ndix

7 to

Ann

exur

e 3A

Fu

nd W

ise

Disc

losu

re o

f App

reci

atio

n an

d/or

(Dep

reci

atio

n) in

val

ue o

f Inv

estm

ent s

egre

gate

d Cl

ass

Wis

e as

on

31st

Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

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an R

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s)

Part

icul

ars

Ind.

For

esig

ht S

PTi

tani

um 1

Tita

nium

2Ti

tani

um 3

Liqu

id P

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Pure

Equ

ityVa

lue

Mom

entu

mIP

P -

Nou

rish

IPP

- G

row

th

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

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ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

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ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

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ent

Year

Prev

ious

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arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

ar

Appr

oved

Inve

stm

ents

Gov

ernm

ent B

onds

(6

84)

(44)

1,0

40

782

1

72

259

3

0 1

7 –

(3

,108

) (4

55)

(6,2

74)

(618

)

Cor

pora

te B

onds

(3

) 5

91

(5)

332

(4

) 1

93

395

5

50

(1,0

90)

1,6

15

Infra

stru

ctur

e Bo

nds

(171

) 2

19

(463

) 2

54

54

153

(2

1) 5

2 –

2

65

(55)

(1,3

07)

(2,2

51)

Equ

ity

131

,781

3

5,20

7 5

0,22

3 1

0,03

7 1

4,55

8 4

,089

5

,443

5

13

5,6

90

102

1

3,78

5 (2

,483

) 2

,364

9

59

12,

952

4,6

42

Pre

fere

nce

Shar

es

623

365

106

42

– –

– 1

1 –

60

Mon

ey M

arke

t –

Mut

ual F

unds

Tot

al

131

,549

3

5,38

2 5

1,16

2 1

1,66

4 1

4,88

5 4

,833

5

,490

7

75

5,6

90

102

1

3,78

5 (2

,483

) (7

3) 9

99

4,3

41

3,3

88

Oth

er In

vest

men

ts

Cor

pora

te B

onds

(9

2) (3

6) –

Infra

stru

ctur

e Bo

nds

Equ

ity

(782

) (4

,413

) 1

19

(348

) 4

7 (1

11)

13

(36)

410

(2

9) 6

58

(96)

(1)

(25)

(103

)

Pre

fere

nce

Shar

es

– –

– –

– –

– –

Mon

ey M

arke

t –

Mut

ual F

unds

9

4

5 3

1

1

2

1 –

3

1

8 –

3

2

1 5

4

9

Tot

al

(773

) (4

,368

) 1

22

(347

) 4

8 (9

0) 1

3 (3

3) 1

8 –

4

10

(29)

658

(9

6) (9

0) (4

0) 5

(5

4)

GRA

ND T

OTAL

1

30,7

76

31,

014

51,

284

11,

317

14,

933

4,7

43

5,5

03

742

1

8 –

6

,100

7

3 1

4,44

3 (2

,579

) (1

63)

959

4

,346

3

,334

Annexures to Schedule 16

Page 199: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

198

Appe

ndix

7 to

Ann

exur

e 3A

Fu

nd W

ise

Disc

losu

re o

f App

reci

atio

n an

d/or

(Dep

reci

atio

n) in

val

ue o

f Inv

estm

ent s

egre

gate

d Cl

ass

Wis

e as

on

31st

Mar

ch 2

014

(Am

ount

s in

thou

sand

s of

Indi

an R

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s)

Part

icul

ars

IPP

- E

nric

h In

com

e Ad

vant

age

Guar

ante

ed

Max

imis

er

Guar

ante

edGr

. Fix

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tere

st

Gr. G

iltGr

. Bon

dGr

. Mon

ey M

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tGr

. Sho

rt T

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Deb

tGr

. Cap

ital

Prot

ectio

n

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

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ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

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us

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arCu

rren

t Ye

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us

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Ye

ar

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d In

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ts

Gov

ernm

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onds

(2

4,93

6)(4

,537

)23

––

–(3

8,67

3)15

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(3,0

55)

1,21

5–

––

––

––

Cor

pora

te B

onds

(3

,762

)2,

591

232

––

–(2

,417

)15

,041

––

(5,2

54)

16,5

55–

–67

964

1–

Infra

stru

ctur

e Bo

nds

(591

)(4

,571

)15

8–

––

(2,2

00)

4,99

5–

–(7

,013

)6,

627

––

(105

)36

5–

Equ

ity

99,4

6528

,453

––

184

––

––

––

––

––

––

Pre

fere

nce

Shar

es

387

––

––

––

––

––

––

––

––

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ey M

arke

t –

––

––

––

––

––

––

––

––

Mut

ual F

unds

––

––

––

––

––

––

––

––

Tota

l 70

,563

21,9

3641

3–

184

–(4

3,29

0)35

,878

(3,0

55)

1,21

5(1

2,26

7)23

,182

––

574

1,00

6–

Oth

er In

vest

men

ts

Cor

pora

te B

onds

––

––

–(1

76)

(14)

––

(1,0

11)

1,23

2–

–(4

29)

––

Infra

stru

ctur

e Bo

nds

––

––

––

––

––

––

––

––

––

Equ

ity

(29)

(817

)–

–8

––

––

––

––

––

––

Pre

fere

nce

Shar

es

––

––

––

––

––

––

––

––

––

Mon

ey M

arke

t –

––

––

––

––

––

––

––

––

Mut

ual F

unds

10

811

59

––

–14

333

311

–18

297

110

124

––

Tot

al

79(7

02)

9–

8–

(33)

193

11(1

,011

)1,

250

297

110

(417

)4

––

GRA

ND T

OTAL

70

,642

21,2

3442

2–

192

–(4

3,32

3)35

,897

(3,0

52)

1,22

6(1

3,27

8)24

,432

297

110

157

1,01

0–

Annexures to Schedule 16

Page 200: BSLI AR _15th cut

for the year ended March 31, 2014

Birla Sun Life Insurance

199

Appe

ndix

7 to

Ann

exur

e 3A

Fu

nd W

ise

Disc

losu

re o

f App

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n an

d/or

(Dep

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n) in

val

ue o

f Inv

estm

ent s

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gate

d Cl

ass

Wis

e as

on

31st

Mar

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014

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ount

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Gr. F

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Gr. S

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2Gr

. Mon

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Curr

ent

Year

Prev

ious

Ye

arCu

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t Ye

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us

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Ye

arCu

rren

t Ye

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Ye

ar

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d In

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Gov

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–(1

38,6

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16,7

37(3

6,83

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169

(36,

374)

1,42

8(3

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)27

7(6

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)42

––

––

–12

4

Cor

pora

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onds

–(3

,572

)15

,990

(757

)1,

200

2,82

43,

930

122

659

1,15

286

––

––

26–

Infra

stru

ctur

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nds

––

(13,

145)

3,09

2(5

,941

)(3

,932

)(7

,176

)(1

,521

)(3

6)(5

45)

(514

)11

––

––

––

Equ

ity

––

182,

996

21,0

7111

0,39

517

,368

157,

645

13,3

7814

,034

926

––

––

––

440

188

Pre

fere

nce

Shar

es

––

1,20

1–

668

–95

6–

92–

––

––

––

2–

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ey M

arke

t –

––

––

––

––

––

––

––

––

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ual F

unds

––

––

––

––

––

––

––

––

Tot

al

––

28,8

4456

,890

67,5

3118

,805

117,

875

17,2

1510

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1,31

7(6

,229

)13

9–

––

–46

831

2

Oth

er In

vest

men

ts

Cor

pora

te B

onds

–(2

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)2,

146

(31)

3693

476

7–

––

––

––

––

Infra

stru

ctur

e Bo

nds

––

––

––

––

––

––

––

––

––

Equ

ity

––

2,11

92,

518

1,08

81,

080

1,57

91,

986

160

136

––

––

––

3–

Pre

fere

nce

Shar

es

––

––

––

––

––

––

––

––

––

Mon

ey M

arke

t –

––

––

––

––

––

––

––

––

Mut

ual F

unds

–27

815

219

065

121

5914

1216

1–

––

––

Tot

al

––

(29)

4,81

61,

247

1,18

12,

634

2,81

217

414

816

1–

––

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GRA

ND T

OTAL

–28

,815

61,7

0668

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19,9

8612

0,50

920

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10,4

801,

465

(6,2

13)

140

––

––

471

312

Annexures to Schedule 16

Page 201: BSLI AR _15th cut

for the year ended March 31, 2014

Annual Report 2013-14

200

Appe

ndix

7 to

Ann

exur

e 3A

Fu

nd W

ise

Disc

losu

re o

f App

reci

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n an

d/or

(Dep

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d Cl

ass

Wis

e as

on

31st

Mar

ch 2

014

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ount

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Part

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Gr. S

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Gr. S

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tabl

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ued

Fund

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Fund

Disc

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Polic

y Fu

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tal

Curr

ent

Year

Prev

ious

Ye

arCu

rren

t Ye

arPr

evio

us

Year

Curr

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Year

Prev

ious

Ye

arCu

rren

t Ye

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us

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Ye

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t Ye

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us

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Ye

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rren

t Ye

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us

Year

App

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d In

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men

ts

Gov

ernm

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onds

(5

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)–

––

45

–10

2–

––

–56

6(1

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,361

)(1

00,9

89)

Cor

pora

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onds

–12

42,

018

––

478

––

––

–66

8–

(191

,279

)24

5,88

6

Infra

stru

ctur

e Bo

nds

(397

)–

(304

)76

––

––

––

––

516

–(4

29,1

25)

49,4

06

Equ

ity

1,89

8–

––

187

––

––

––

––

16,7

77,7

844,

355,

041

Pre

fere

nce

Shar

es

16–

––

––

––

––

––

––

76,4

48–

Mon

ey M

arke

t –

––

––

––

––

––

––

––

Mut

ual F

unds

––

––

––

––

––

––

––

Tot

al

(3,7

73)

–(1

80)

2,09

422

1247

810

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–1,

240

614

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4,54

9,34

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vest

men

ts

Cor

pora

te B

onds

–(1

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(1,7

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stru

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e Bo

nds

––

––

––

––

––

––

––

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Equ

ity

33–

––

––

––

––

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––

(33,

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(301

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)

Pre

fere

nce

Shar

es

––

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––

––

––

––

––

––

Mon

ey M

arke

t –

––

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––

––

––

––

Mut

ual F

unds

2

–17

8–

––

––

––

–16

29

7,26

75,

321

Tot

al

35–

(83)

(36)

––

––

––

––

162

9(7

1,37

0)(2

98,0

28)

GRA

ND T

OTAL

(3

,738

)–

(263

)2,

058

2212

478

102

––

––

1,40

215

14,4

60,1

144,

251,

316

Annexures to Schedule 16

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for the year ended March 31, 2014

Birla Sun Life Insurance

201

Summary of Financial Statements Annexure - 4 (Amounts in thousands of Indian Rupees)

Sr. No. Particulars 2013-14 2012-13 2011-12 2010-11 2009-10

POLICYHOLDERS’ A/C

1 Gross Premium Income 48,330,521 52,162,991 58,853,594 56,770,665 55,056,579

2 Net Premium Income# 46,448,513 50,517,461 57,477,737 55,945,624 54,253,630

3 Income from investments(Net)@ 24,958,744 20,700,492 (1,632,680) 14,919,387 40,031,523

4 Other Income 365,427 366,568 298,060 236,803 143,486

5 Total Income 71,772,685 71,584,521 56,143,117 71,101,814 94,428,639

6 Commissions 2,347,130 3,004,767 3,254,002 3,805,795 5,161,974

7 Brokerage – – – – –

8 Operating Expenses related to insurance Business 10,381,707 11,597,047 12,151,175 12,034,778 13,267,526

9 Total Expenses 12,728,836 14,601,814 15,405,177 15,840,573 18,429,500

10 Payment to Policy holders 36,655,017 36,586,379 27,046,221 19,343,749 11,387,815

11 Increase in Actuarial Liability 19,767,326 16,124,872 9,871,376 33,252,514 69,259,695

12 Provision for Tax (including Fringe Benefit Tax) – – – (5,875) –

13 Surplus/(Deficit) from operations 2,621,506 4,271,456 3,820,343 2,670,853 (4,648,371)

SHAREHOLDERS’ A/C

14 Total Income under Shareholders’ Account 1,086,031 1,143,573 786,946 379,105 293,405

15 Profit/(loss) Before Tax 3,707,537 5,415,031 4,607,289 3,049,958 (4,354,965)

16 Profit/(loss) After Tax 3,707,537 5,415,031 4,607,289 3,049,958 (4,354,965)

17 Profit/(loss) carried to Balance Sheet (9,536,350) (12,424,921) (13,762,293) (17,225,082) (20,275,040)

18 (A) Policyholders’ account:

Total funds (incl Funds for Future Appropriation) 235,574,421 215,763,094 199,640,312 189,770,583 156,518,655

Total Investments (including policy loans) 234,739,033 215,866,081 201,197,493 190,888,814 156,520,111

Yield on investments

– Linked Fund(%)$ 12.10% 10.88% -1.74% 9.45% 44.77%

– Non Par Non-Linked Fund (%) 9.03% 8.95% 8.31% 7.54% 6.95%

– Par Non-Linked Fund (%) 5.25% 4.25% NA NA NA

(B) Shareholders’ account:

Total funds (including unrealised gain) 12,566,214 12,476,234 10,732,754 7,269,919 4,220,265

Total investments 13,292,091 13,706,870 10,153,273 6,972,707 5,043,972

Yield on investments (%) 8.90% 10.22% 9.85% 6.59% 6.41%

19 Yield on total investments 11.72% 10.65% -0.41% 9.20% 40.14%

20 Paid up equity capital 19,012,080 19,695,000 19,695,000 19,695,000 19,695,000

21 Net worth 12,566,214 12,476,234 10,732,754 7,269,919 4,220,264

22 Total Assets 248,140,636 228,239,327 210,373,067 197,040,502 160,738,920

23 Earnings per share (share of FV of ` 10 each) ` 1.94 2.75 2.34 1.55 (2.28)

24 Book value per share (share of FV of ` 10 each) ` 6.61 6.33 5.45 3.69 2.14

# Net of Reinsurance

@ Net of Losses

$ Yield on Linked policyholders investments includes unrealised gains on investments.

Annexures to Schedule 16

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Annual Report 2013-14

202

Analytical ratio for the Financial Year : 2013-14 Annexure - 5(Amounts in thousands of Indian Rupees)

Sr. No Ratios for Life Insurers 31st March 2014 31st March 2013

1 New business premium income growth (segment-wise)(New business premium for Current Year divided by new businesspremium income for Previous Year)a) Linked Business 0.89 0.67 b) Non-Linked Business 0.66 1.30 c) Pension Business 1.25 1.45 d) Health Business 0.34 0.93 e) Participating Business 8.41 N.A. f) Total Business 0.92 0.95

2 Net Retention Ratio (Net Premium divided by gross premium) 0.96 0.97 (Net premium divided by gross premium)

3 Expense of Management to Gross Direct Premium Ratio 0.26 0.28 (Expenses of management divided by the total gross direct premium)Note: Expenses of Management = Operating Expenses related to Insurance Business + Commission Expenses

4 Commission Ratio 0.05 0.06 (Gross Commission paid to Gross Premium)

5 Ratio of Policyholders’ Liabilities to Shareholders’ Funds 18.75 17.29 Note: a) Policyholders’ Liabilities = Policy Liabilities + Funds for Future Appropriations

+ Provision for Linked Liabilities + Credit/(Debit) fair value change account (Linked & Non Linked)

b) Shareholders’ Funds = Share Capital + Reserves & Surplus + Credit/(Debit) fair value Current Year account + Credit/(Debit) balance in Profit & Loss A/C

6 Growth Rate of Shareholders’ Funds 1.01 1.16 7 Ratio of Surplus/(Deficit) to Policyholders’ Liabilities 0.01 0.01 8 Change in Net Worth (` in ‘000) 89,981 1,743,478 9 Profit after Tax / Total Income 0.05 0.07

Note: Total Income = Total Income under Policyholders’ Account excluding shareholders’ contribution + Total Income under Shareholders’ Account excluding policyholders’ contribution

10 (Total Real Estate + Loans) / Cash & Invested Assets 0.00 0.00 11 Total Investments/(Capital + Surplus) 19.72 18.38

Note: Total Investments = Shareholders’ Investments + Policyholders’ Investments + Assets held to cover Linked Liabilities

12 Total Affiliated Investments/(Capital + Surplus)* 0.46 0.33 13 Investment Yield

A. Without Unrealised GainsShareholders’ Funds 9.46% 8.99%Policyholders’ Funds :Non-Linked Participating 8.90% 8.89%Non-Linked Non Participating 8.90% 7.53%Linked Non Participating 6.88% 8.72%B. With Unrealized GainsShareholders’ Funds 4.36% 12.13%Policyholders’ Funds :Non-Linked Participating 5.16% 11.17%Non-Linked Non Participating 5.26% 4.46%Linked Non Participating 12.18% 10.62%

14 Conservation RatioTotal Conservation Ratio (without Group) 69.65% 64.98%Total Conservation Ratio (with Group) 60.42% 58.25%

15 Persistency Ratio*For 13th month 60.10% 81.32%For 25th month 60.70% 76.64%For 37th month 64.20% 71.64%For 49th Month 53.30% 60.04%For 61st month 43.50% 50.77%

16 NPA RatioGross NPA Ratio Nil NilNet NPA Ratio Nil Nil

17 Solvency Ratio 1.86 2.67

* Ratio calculated above is without considering policyholders’ funds amounting to ` 234,454,364 (Previous Year: ` 215,585,391 thousands). The ratio after considering the policyholders’ funds for the Current year is 0.02 (Previous Year: 0.02).

Annexures to Schedule 16

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Birla Sun Life Insurance

203

Management Report(Amounts in thousand of Indian Rupees)

In accordance with the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002, the following Management Report is submitted by the Board of Directors:

1. Certificate of Registration The Certificate of Registration granted by the Insurance Regulatory and Development Authority (IRDA) to enable the Company to transact

life insurance business was valid as on 31st March 2014 and is in force as on the date of this Report. IRDA has renewed the Company’s Certificate of Registration to sell life insurance products in India for the year 2014-15 vide its Certificate of Renewal of Registration dated 31st January 2014.

2. Statutory Dues We hereby certify that all the material dues payable, other than those which are being contested with the statutory authorities, have been

duly paid.

3. Shareholding Pattern The Company confirms that the shareholding pattern and any transfer of shares during the year are in accordance with the statutory and /

or regulatory requirements.

4. Investment of Funds The Company has not, directly or indirectly, invested policyholders fund outside India.

5. Solvency Margin The Company has maintained adequate assets to cover both its liabilities and the minimum solvency margin, as stipulated in Section 64 VA

of the Insurance Act, 1938.

6. Valuation of Assets We hereby certify that all assets of the Company have been reviewed on the date of the Balance Sheet and to the best of our knowledge and

belief the assets set forth in the Balance Sheet are shown in the aggregate at amounts not exceeding their realizable or market value under the several headings – “Loans”, “Investments” (other than as mentioned hereunder), “Agents balances”, “Outstanding Premiums”, “Interest, Dividends and Rents outstanding”, “Interest, Dividends and Rents accruing but not due”, “Amounts due from other persons or Bodies carrying on insurance business”, “Sundry Debtors”, “Bills Receivable”, “Cash” and the several items specified under “Other Accounts”.

Market values of fixed income investments made in shareholders’ funds and policyholders non-linked funds which are valued at amortised cost as per IRDA regulations, is lower by their carrying amounts by ` 1,034,679 (previous year higher by ` 512,556) in aggregate as at 31st March 2014.

7. Investment Pattern We hereby confirm and certify that, no part of Life Insurance Fund has been directly or indirectly applied in contravention of provisions of the

Insurance Act 1938 (4 of 1938) relating to the application and investment of the life insurance funds.

8. Risk Minimisation Strategies The Company is exposed to several risks in the course of its business. The risks on the liabilities side may arise due to more than expected

claims. On the assets side, the risks arise due to the possibility of fluctuations in their values. The Company is also subject to the expense risk, since until new business volumes grow significantly, the actual expenses of the Company will exceed the expenses loaded into the product pricing. The Company has implemented adequate safeguards to mitigate these risks, as are described below.

A strong underwriting team is in place to review all proposals from clients, supported by comprehensive processes and procedures, and guided by international experts. The objective of the underwriting team is to minimise the risks of abnormal mortality and morbidity by acquiring adequate information, on which to determine, whether to accept individual lives, and if so, the extra premium, to compensate for any additional risk.

Further, the possible financial effect of adverse mortality and morbidity experience has been reduced by entering into reinsurance agreements with RGA, Munich Re and Swiss Re (international reinsurers) for individual life business and RGA and Munich Re for group business. All reinsurers are specialist international reinsurance companies with excellent reputation and significant financial strength. The Company also has a separate agreement with RGA to cover the catastrophic risks under group business.

The Company has also set up systems to continuously monitor its experience in regard to other parameters that affect the value of benefits offered in the products. Such parameters include policy lapses, premium persistency, maintenance expenses and investment returns. The operating expenses are monitored very closely. Many products offered by the Company also have an investment guarantee. The Company has set aside additional reserves to cover this risk.

The Company’s investment team operates under the close supervision of the Investment Committee appointed by the Board of Directors. The investments are made in line with the investment policy adopted by the Company.

The Company has a BS 25999 certified Business Continuity Plan in place to manage any business interruption risk.

Information Security risks are governed through Information Security policy. The Company has a comprehensive policy designed to comply with privacy and / or data protection legislations as specified in Indian Information Technology Act 2008 and Notification dated 11th April 2011 on protection of sensitive personal information and it provides direction to Information Security staff as well as management and employees regarding their responsibilities for the Information Security function.

9. Country Risk The Company is operating in India only and hence has no exposure to any other country risk.

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Annual Report 2013-14

204

Management Report(Amounts in thousand of Indian Rupees)

10. Ageing of Claims The average claims settlement time from the date of receipt of complete requirements from the claimant to dispatch of claim payment for

the current year and previous four financial years are given below:

Period Average claim settlement time (in days)

2013-14 4

2012-13 3

2011-12 3

2010-11 3

2009-10 3

Ageing of claims outstanding

For Non Linked Business

Period

Claims registered and not settled Claims registered and settled

Current Year Previous Year Current Year Previous Year

No. of Claims

Amount (in '000)

No. of Claim

Amount (in '000)

No. of Claims

Amount (in '000)

No. of Claims

Amount (in '000)

Less than 30 Days 72 58,567 166 93,732 – – – –30 days to 6 months 57 59,338 162 133,354 5 2,718 2 4286 months to 1 year 24 8,107 22 11,027 9 4,021 3 8121 year to 5 years 39 12,502 2 939 6 2,514 4 2,6185 years and above 1 50 – – 2 2,700 1 2,500

Total for the Period 193 138,564 352 239,051 22 11,953 10 6,359

For Linked Business

Period

Claims registered and not settled Claims registered and settled

Current Year Previous Year Current Year Previous Year

No. of Claims

Amount (in '000)

No. of Claim

Amount (in '000)

No. of Claims

Amount (in '000)

No. of Claim

Amount (in '000)

Less than 30 Days 17 10,607 47 39,260 7 3,004 3 49530 days to 6 months 14 8,459 29 33,453 12 13,128 14 12,1706 months to 1 year 16 6,929 27 11,397 18 9,861 15 5,9411 year to 5 years 73 33,982 53 20,675 34 21,604 18 11,2575 years and above 4 900 5 650 7 1,258 1 208

Total for the Period 124 60,877 161 105,435 78 48,855 51 30,071

The above includes provision made (net of reinsurance) for 171 cases (previous year 124 cases) amounting to ` 69,191 (previous year ` 46,366) during the year where the Company has lost in the first forum of litigation and has appealed against the same.

11. Valuation of Investments We hereby certify:

The investments of Shareholders’ Funds and Non Linked Policyholders’ Funds are valued as under:

• DebtSecuritiesandmoneymarketinstrumentsarevaluedonamortisedcostbasis.

• EquitiesandPreferencesharesarevaluedonthelastquotedclosingpriceofthesecurityontheNationalStockExchangeofIndiaLimited (NSE). In case the shares are not traded on NSE, valuation is done on closing price at Bombay Stock Exchange (BSE). Investments in unlisted equity and preference shares are valued as per the valuation policy of the Company duly approved by Investment Committee.

• MutualFundsarevaluedonpreviousday’snetassetvaluepublishedbytherespectivemutualfunds.

The investments of linked funds of policyholders are valued as under: • GovernmentSecurities(exceptTBills)arevaluedbasisthepricesprovidedbyCRISIL.Allotherdebtsecuritiesarevaluedthrough

CRISIL Bond Valuer. Debt securities with a residual maturity of less than or equal to 182 days are amortised over the remaining days to maturity through CRISIL Bond Valuer.

• EquitiesandPreferencesharesarevaluedonthelastquotedclosingpriceofthesecurityontheNationalStockExchangeofIndiaLimited (NSE). In case the shares are not traded on NSE, valuation is done on closing price at Bombay Stock Exchange (BSE). Investments in unlisted equity and preference shares are valued as per the valuation policy of the Company duly approved by Investment Committee.

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Birla Sun Life Insurance

205

Management Report(Amounts in thousand of Indian Rupees)

• MoneyMarketInstrumentsarevaluedonamortisedvalue.

• MutualFundsarevaluedonpreviousday’snetassetvaluepublishedbytherespectivemutualfunds.

12. Review of Asset Quality Shareholders’ Fund The Company has invested approx more than 44% of the Shareholder funds in Government securities, Treasury Bills and Collateralised

Borrowing and lending obligation (CBLO), which have a sovereign rating. Around 40% of the funds have been invested in AAA/AA+/A1+ rated Securities (which include Infrastructure & Housing bonds) Approximately around 16% of the funds are invested in Fixed Deposits and liquid schemes of leading mutual funds.

Policyholders’ Fund The policyholders’ funds are invested as per the regulatory norms and the commitments made to the policyholders. In fixed income segment,

majority of the investment is made in government securities having sovereign rating and debt paper of reputed corporate having rating AAA/A1+. The equity selection is made after appropriate research and analysis of the investee company as well as the industry to which it belongs. To meet the liquidity requirement a part is invested into liquid and short-term schemes of leading mutual funds and other money market instruments of high credit rating. The investments are also made keeping in mind the asset-liability requirement of the respective funds.

13. Directors Responsibility Statement The Board of Directors of the Company also state that:

• Thefinancialstatementshavebeenpreparedinaccordancewithapplicableaccountingstandards,theregulationsstipulatedbytheIRDA and the provisions of the Insurance Act, 1938 and the Companies Act, 1956 and disclosures have been made, wherever the same is required. There is no material departure from the said standards, principles and policies;

• The Company has adopted accounting polices and applied them consistently and has made judgments and estimates that arereasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March 2014, and, of the operating profit of the Company for the year ended on 31st March 2014;

• Properandsufficientcarehasbeentakentomaintainadequateaccountingrecordsinaccordancewiththeapplicableprovisionsofthe Insurance Act, 1938, Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• ThefinancialstatementsoftheCompanyarepreparedonagoingconcernbasis;and

• TheCompanyhasappointedsomeauditfirmstoconducttheinternalauditoftheCompany.Thescopeofworkoftheauditfirms’iscommensurate with the size and nature of the Company’s business. The management certifies that adequate internal control systems and procedures were in existence for this financial year.

14. Schedule of payments made to individuals, firms, companies and organisation in which Directors of the Company are interested: The Company has not made any payments during the year to individuals, firms, companies and organisation in which Directors of the

Company are interested.

For and on behalf of the Board of DirectorsBirla Sun Life Insurance Company Limited

Kumar Mangalam Birla Donald A. Stewart Tarjani VakilChairman Director Director

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief Chief Financial Officer

Executive OfficerAnil Kumar Singh Ashish LakhtakiaChief Actuarial Officer Company Secretary& Appointed Actuary

Mumbai, 25th April, 2014

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Annual Report 2013-14

206

Cash Flow Statement

Receipts and Payments account (Cash Flow Statement)For the year ended 31st March 2014(Amounts in thousands of Indian Rupees)

ParticularsAudited Year Ended

31st March 2014 Audited Year Ended

31st March 2013

Cash flow from operating activities (A)Premium received 47,659,254 51,643,403 Reinsurance premium ceded (1,731,500) (1,208,304)Application money deposit & due to Policy holders 241,362 (135,279)Commission paid (2,371,591) (2,990,351)Deposits taken from/(refunded to) agents – – Payments made to employees and for expenses (10,700,282) (12,000,262)Claims paid (37,882,146) (36,580,125)Reinsurance claims ceded 1,082,433 973,655 Deposits & others 69,341 (5,427)Deposits with Reserve Bank of India – – Other income 334,901 309,464

Cash inflow / (outflow) from operating activities (3,298,228) 6,774 Taxes Paid (Fringe Benefit Tax & Wealth Tax) – – Net cash inflow / (outflow) from operating activities (A) (3,298,228) 6,774 Cash flow from investing activities (B)Purchase of fixed assets (309,242) (171,945)Sale of fixed assets 17,578 11,478 Loan against Policies 23,694 815 Decrease /(Increase) in investments (4,505,527) (7,474,523)Cash held to cover linked liabilities (460,288) (1,275,935)Interest received (net of tax deducted at source) 10,730,918 9,668,523 Dividend received 1,617,987 1,646,341

Net cash inflow from investing activities (B) 7,115,120 2,404,754 Cash flow from financing activities (C)Share capital issued / (Redemption) (682,920) – Share premium (2,117,052) – Dividend paid (1,181,700) (2,954,250)Dividend distribution tax (200,830) (319,502)Capital Redemption Reserve – –Net cash used in financing activities (C) (4,182,502) (3,273,752)Net increase / (decrease) in cash and cash equivalents (D=A+B+C) (365,609) (862,224)Cash and cash equivalents at beginning of the year 5,442,434 6,304,658 Cash and cash equivalents as at end of the period 5,076,825 5,442,434

1. Due to large volume of investments transactions, cash flow is reported on net basis in accordance with Accounting Standard 3 issued by the Institute of Chartered Accountants of India.

In terms of our report attached.

For S. R. Batliboi & Associates LLP For Khimji Kunverji & Co. For and on behalf of the Board of DirectorsChartered Accountants Chartered Accountants ICAI Firm ICAI FirmRegistration No. 101049W Registration No. 105146W

per Amit Kabra Hasmukh Dedhia Kumar Mangalam Birla Donald A. Stewart Tarjani VakilPartner Partner Chairman Director Director Membership No. 094533 Membership No. 33494

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief Chief Financial Officer

Executive Officer

Anil Kumar Singh Ashish LakhtakiaChief Actuarial Officer Company Secretary

Mumbai, 25th April, 2014 & Appointed Actuary

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Birla Sun Life Insurance

207

Balance Sheet Abstract

Balance Sheet Abstract and Company’s General Business Profile(Amounts in thousands of Indian Rupees)I Registration Details State Code 2 2

Registration No. 1 2 8 1 1 0

Balance Sheet Date 3 1 0 3 2 0 1 4

II Capital Raised during the Year (Amount in ` thousands) Public Issue Right Issue

N I L

N I L

Bonus Issue Private Placement (Including Premium)

N I L

N I L

III Position of Mobilisation and Development of Fund (Amount in ` thousands) Total Liabilities Total Assets

2 6 6 1 7 8 4 0 3

2 6 6 1 7 8 4 0 3

Source of Funds Paid-Up-Capital Reserve & Surplus

1 9 0 1 2 0 8 0

2 6 8 2 9 4 8

Secured Loans Unsecured Loans

N I L

N I L

Application of Funds Net Fixed Assets Investments*

3 9 9 2 4 3

2 4 7 7 4 6 4 5 5

Net Current Assets Misc. Expenditure

(–) 2 8 9 7 3 1

N I L

Accumulated losses

9 1 3 0 2 2 3

IV Performance of Company (Amount in ` thousands) Turnover Total Expenditure

7 2 8 5 8 7 1 6

6 9 1 5 1 1 7 9

Profit Before Tax Profit After Tax

3 7 0 7 5 3 6

3 7 0 7 5 3 6

Earning per share Dividend rate %

1 . 9 4

3 . 6 8

V Generic Names of Three Principal products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description

N I L

L I F E

I N S U R A N C E

For and on behalf of the Board of DirectorsBirla Sun Life Insurance Company Limited

Kumar Mangalam Birla Donald A. Stewart Tarjani VakilChairman Director Director

Pankaj Razdan Mayank Bathwal Amit JainManaging Director & CEO Deputy Chief Chief Financial Officer

Executive OfficerAnil Kumar Singh Ashish LakhtakiaChief Actuarial Officer Company Secretary& Appointed Actuary

Mumbai, 25th April, 2014

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Annual Report 2013-14

208

Appointed Actuary’s Certificate(Amounts in thousands of Indian Rupees)

I have valued the policy liabilities of Birla Sun Life Insurance Company Limited at 31st March 2014, in accordance with accepted actuarial practice and in line with relevant professional guidance issued by the Institute of Actuaries of India, including that covering the selection of appropriate assumptions.

In my opinion, the amount of policy liabilities (` 234,800,450 net of reinsurance) makes appropriate provision for all policyholders’ obligations, and the financial statements fairly present the result of the valuation.

Anil Kumar Singh

Appointed Actuary

Fellow of the Institute of Actuaries of India

Mumbai, 25th April, 2014

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24

Annual Report 2013-14

FINANCIAL REPORT

stCorporate information as on 31 March 2014

Birla Sun Life Insurance

Joint Statutory Auditors

Sunshine Tower, Level 19, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013.

M/s. Khimji Kunverji & Co.12th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (W), Mumbai – 400 028.

M/s. S. R. Batliboi & Associates LLP

Citi Bank N.A.

Main Bankers Deutsche Bank HDFC Bank Standard Chartered Bank

Mr. Ashish Lakhtakia

Company Secretary

Mr. Kumar Mangalam Birla Mr. Donald A. Stewart Mr. Ajay Srinivasan

Mr. Puranmalka Mr. Gian P. Gupta Mr. M. V. NairMr. Pankaj Razdan Mr. Kevin Strain Dr. Rakesh JainMs. Tarjani Vakil Mr. Venkatesh Mysore

Board of Directors

Senior Management Team

Mr. Mayank BathwalDeputy Chief Executive Officer

Mr. Amit JainChief Financial Officer

Mr. Anil Kumar SinghChief Actuarial Officer

Mr. Lalit VermaniChief Legal, Compliance &Risk Officer

Mr. Pramod KrishnamurthyChief Technology Officer

Mr. Sashi KrishnanChief Investment Officer

Mr. Saurov GhoshHead - Human Resources & Training

Mr. Vikas SethChief Distribution Officer

Mr. Ajay SrinivasanMr. Amit Jain Mr. Anil Kumar Singh

Mandatory Committee

Asset Liability Management CommitteeMs. Keerti GuptaMr. Lalit VermaniMr. Mayank Bathwal

Mr. Pankaj RazdanMr. Sashi KrishnanMr. Venkatesh Mysore

Mr. Gian P. Gupta – ChairmanMr. Ajay SrinivasanMr. Puranmalka

Audit Committee

Mr. Kevin StrainMr. Pankaj Razdan

Ms. Tarjani VakilMr. Venkatesh Mysore

Mr. Ajay SrinivasanMr. Amit Jain Mr. Anil Kumar Singh

Investment Committee

Ms. Keerti GuptaMr. Lalit VermaniMr. Mayank Bathwal

Mr. Pankaj RazdanMr. Sashi KrishnanMr. Venkatesh Mysore

Mr. N. N. Jambusaria – ChairmanMr. Amit JainMr. Anil Kumar Singh

Policyholders' Protection Committee

Ms. Anjali Makhija Mr. Ashish LakhtakiaMr. Lalit Vermani

Mr. Mayank BathwalMr. Pankaj RazdanMr. Vikas Seth

Mr. Amitabh Verma

Mr. Ajay SrinivasanMr. Gian P. Gupta

Risk Management Committee

Mr. Pankaj RazdanMs. Tarjani Vakil

Mr. Venkatesh Mysore

Non-Mandatory Committee

Finance CommitteeMr. Ajay SrinivasanMr. Puranmalka

Mr. Gian P. GuptaMs. Tarjani Vakil

Mr. Venkatesh Mysore

Share Allotment Committee Mr. Puranmalka Mr. Gian P. Gupta Mr. Venkatesh Mysore

With Profits Committee Mr. Gian P. Gupta Mr. Anil Kumar Singh Mr. Pankaj Razdan Mr. Vivek Jalan

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Birla

Su

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su

ran

ce – A

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01

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Birla Sun Life Insurance Company Limited,

One Indiabulls Centre, Tower 1, 16th Floor, Jupiter Mill Compound,

841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013.