FINANCIAL STATEMENTS

OF
LIFE INSURANCE COMPANIES
Q:the following balances relate to New India Life Assurance co. Ltd as on
31st,march,2003
Shareholders capital:
(1,00,00,000 shares of Rs.25
each,Rs.10 per share paid up)
Claims under policies paid & o/s
less received on re-assurance
Life assurance fund on 1st
april,2002
Investment reserve fund on 1st
april,2002
Expenses of management
Investments
Due from other entities carrying
on Insurance business
(Rs.’000)
1,00,000 Consideration for annuities 25,250
granted
Bonus in reduction of premium 2,000
Gain on redemption of
22,50,000 debentures (to be carried to 10,000
investment reserve fund)
Interest, dividends &rents
2,40,00,000 received 16,60,168
Interest accrued, but not recd
25,00,000 Income tax paid 1,58,500
Transfer & other fees 1,40,074
7,50,213 Furniture fittings 3,215
2,55,00,000 Loans on the company policies 45,250
within their surrender value
Cash in hand & at bank
72,952 24,50,000
1,82,000
Freehold & Lease hold 12,50,000 Stamps in hand 3,661
property Cheques paid into
Annuities Due 25,895 bank and in in course
Agents balances 3,01,600 of realization 24,500
Claims outstanding 15,00,000 Cheques issued but
O/s premiums 2,95,000 not presented for
Surrenders 1,29,475 payment 33,260
Annuities 15,000 Sundry creditors 22,437
Premium less re-insurance 37,50,000 Premiums received in
Commission paid 50,000 advance 50,000
Income tax on interest
& dividends 60,000

Prepare the revenue a/c for the year ended 31st,march,

2003 and a balance sheet as at that date of the New
India Life Assurance Company Ltd.
 SCHEDULE 1-PREMIUM EARNED (NET)
No Particulars (Rs.’000) CY PY
1. Premium from direct business xxx
2. Add: premium on reinsurance accepted xxx
3. Less: premium on reinsurance ceded xxx

Net premiums xxx

Adjustment for change in reserve for unexpired

risk xxx

Total premium earned (net) xxx

 SCHEDULE 1-PREMIUM
No Particulars (Rs.’000) CY PY

1. First year premiums xxx

2. Renewal premiums xxx
3. Single premiums xxx
Total premiums 37,50,000
Less: Premium paid for
Reinsurance Xxx
Net Premium 37,50,000
 SCHEDULE 2-CLAIMS INCURRED(NET)

No Particulars (Rs.’000) CY PY
Claims paid (Direct) xxx
Add: reinsurance accepted xxx
Less: reinsurance ceded xxx
Net claims paid xxx
Add: claims o/s at the end of the year xxx
Less: claims o/s at the beginning xxx
Total claims incurred xxx
SCHEDULE 2-COMMISSION EXPENSES
Particulars (Rs.’000) CY PY
Commission paid 50,000
Direct -First year premiums xxx
-Renewal premiums xxx
-Single premiums xxx
Add: Commission on re-insurance
accepted xxx
Less: Commission on re-insurance
ceded xxx
Net Commission 50,000
Note: the profit / commission, if any is to be combined with the re-
insurance accepted or re-insurance ceded figures.
 SCHEDULE 3-OPERATING EXPENSES
(Rs.’000)
No Particulars CY PY
1. Employees remuneration & welfare benefits
Travel, conveyance & vehicle running 7,50,213
2. expenses
Training expenses xxx
3. Rents, rates & taxes xxx
4. Repairs xxx
5. Printing & stationary xxx
6. Communication expense xxx
7. Legal & professional charges xxx
8. Medical fees xxx
9. xxx
 SCHEDULE 3-OPERATING EXPENSES
10. Auditors fees expenses etccontd…
–
a) As auditor xxx
b) As adviser or in any other capacity, i.r.o.:
i. Taxation matters xxx
ii. Insurance matters xxx
iii. Management services; and xxx
c) In any other capacity xxx
11. Advertisement & publicity xxx
12. Interest and bank charges xxx
13. Others (to be specified) xxx
14. Depreciation xxx
Total 7,50,213

Note: Expenses & Incomes in excess of 1% of total premiums (less reinsurance)

or Rs.5,00,000 whichever is higher are shown as separate line item.
 SCHEDULE 4- BENEFITS PAID (NET)
No Particulars (Rs.’000) CY PY
1. Insurance claims:
a) Claims by death, xxx
b) Claims by maturity, xxx
c) Annuities/pension payments, xxx
d) Others benefit, specify. xxx
2. Amount ceded in reinsurance:
a) Claims by death, xxx
b) Claims by maturity, xxx
c) Annuities/pension payments, xxx
d) Other benefits ,specify. xxx
3. Amount accepted in reinsurance:
a) Claims by death, xxx
b) Claims by maturity, xxx
c) Annuities/pension payments, xxx
d) Other benefits specify. xxx
Notes : (a) claims include specific claims settlement costs, Total xxx
wherever applicable
(b) legal and other fees and expenses shall also form part of the claims cost,
wherever applicable
 SCHEDULE 4- BENEFITS PAID (NET)

Particulars CY PY
Claims paid & o/s Less: reinsurance 22,50,000
Annuities 15,000
Surrenders 1,29,475
Bonus on reduction of premium 2,000

Total 23,96,475
 SCHEDULE 5-SHARE CAPITAL
No Particulars (Rs.’000) CY PY
1. Authorized capital
Equity shares of Rs…..each xxx
2. Issued capital
Equity shares of Rs…..each xxx
3. Subscribed capital
Equity shares of Rs…..each xxx
4. Called-up capital
1,00,00,000 Equity shares of Rs25each,Rs.10 per share paid up 1,00,000
Less: calls unpaid xxx
Add: shares forfeited (amount originally paid up) xxx
Less: per value of equity shares bought back xxx
Less: preliminary expenses xxx
(Expenses including commission or brokerage on underwriting or
subscription of shares)
Total 1,00,000
Notes:
a)Particulars of the different classes of capital should be separately stated.
b)The amount capitalized on a/c of issue of bonus share should be disclosed.
c)In case any part of the capital is held by a holding company, the same should be
separately disclosed.
 SCHEDULE 6- RESERVES AND SURPLUS
No Particulars (Rs.’000) CY PY
1. Capital reserve xxx
2. Capital redemption reserve xxx
3. Share premium xxx
4. Revaluation reserve xxx
5. General reserve xxx
Less: Debit Bal. in profit & loss a/c if any xxx
Less: Amount utilized for buy-back xxx
6. Catastrophe reserve xxx
7. Other reserves (to be specified) xxx
8. Balance of profit & loss account xxx
Total xxx
Note: additions to and deductions from the reserves shall be disclosed under each
of the specified heads
 SCHEDULE 6-RESERVES & SURPLUS
Particulars CY
Life assurance fund at the beginning of
the year 2,40,00,000
Add: surplus during the year 22,41,945 2,62,41,945

Investment reserve fund 25,00,000

Add: Gain on redemption of debenture 10,000 25,10,000
Total 2,87,51,945
SCHEDULE 7-BORROWINGS
No Particulars (Rs.’000) CY PY
1. Debentures / Bonds xxx
2. Banks xxx
3. Financial institutions xxx
4. Others( to be specified) xxx

Total xxx
Note:
a)The extent to which the borrowings are secured shall be separately disclosed
stating the nature of the security under each sub-head.
b)Amounts due within 12 months from the date of balance sheet be shown
separately.
 SCHEDULE 8-INVESTMENT SHAREHOLDES
No Particulars (Rs.’000) CY PY
1 Long-term Investments
Government Securities and Government guaranteed bonds
including Treasury bills xxx
Other Approved Securities xxx
Other investments
a) Shares
• Equity xxx
• Preference xxx
(b) Mutual funds xxx
(c) Derivatives instruments xxx
(d) Debentures/bonds xxx
(e) Other securities(to be specified) xxx
(f) Subsidiaries xxx
Investment properties-real estate xxx
Investment in infrastructure and social sector
other than approved investments xxx
 SCHEDULE 8-INVESTMENT SHAREHOLDES
2. Short term investments
Government Securities and Government guaranteed
bonds including Treasury bills xxx
Other Approved Securities xxx
Other investments
a) Shares
• Equity xxx
• Preference xxx
(b) Mutual funds xxx
(c) Derivatives instruments xxx
(d) Debentures/bonds xxx
(e) Other securities (to be specified) xxx
(f) Subsidiaries xxx
Investment properties-real estate xxx
Investment in infrastructure and social sector
other than approved investments xxx
Total 2,55,00,000
 SCHEDULE 9-LOANS
No Particulars (Rs.’000) CY PY
A Security wise classification
Secured
(a)On mortgage of property
in India xxx
outside India xxx
(b) On shares, bonds, govt. securities, etc. xxx
(c) Loans against policies 24,50,000
(d) Others (to be specified) xxx
Unsecured xxx
Total 24,50,000
B Borrower wise classification
(a) Central and state govt. xxx
(b) Banks and financial institutions xxx
(c) Subsidiaries xxx
(d) Companies xxx
(e) Loans against policies xxx
(f) Others (to be specified) xxx
Total xxx
C SCHEDULE
Performance wise classification 9-LOANS
(a) Loans classification as standard
In India xxx
Outside India xxx
(b) Non-standard loans less provisions
In India xxx
Outside India xxx
Total xxx
Maturity wise classification xxx
D Short term
Long term xxx
Total xxx
xxx
Note:
a)Short term loans shall includes, which are repayable within 12 months
from the date of balance sheet. Long terms loans shall be the loans other
than short term.
b)Provisions against non performing loans should be shown separately.
 SCHEDULE10-FIXED ASSETS
Cost/gross block Depreciation N block
Particulars b/f + - c/f b/f 4 d On sales / c/ Year PY
yr adjustment f end
Goodwill
Intangibles
(specify)
Free hold Land
Leasehold
property
Buildings
Furniture &
fittings
IT Equipment
Vehicles'
Office equipment
Others (specify
nature)
Total
CWIP
Grand total
Previous year
SCHEDULE 10-FIXED ASSETS

Particulars CY PY
Freehold & Lease hold property 12,50,000
Furniture & Fittings 45,250
Total 12,95,250
 SCHEDULE 11-CASH AND BANK BALANCES
No Particulars (Rs.’000) CY PY

1 Cash (including cheques, drafts and stamps) xxx

2 Bank balances xxx
3 Deposit accounts –
Long Term xxx
Short term (due within 12 months of B/S date) xxx
4 Others –
a) Current accounts xxx
b) Others (to be specified) xxx
5 Money at call and short notice –
a) With banks xxx
b) With other institutions xxx
c) Others (to be specified) xxx
Total xxx
1 Balances with non-scheduled banks in 2 and 3 above xxx
2 Cash and bank balances
In India xxx
Outside India xxx
 SCHEDULE 11-CASH & BANK BALANCES
Particulars CY PY
Cash (including cheques ,drafts, and stamps):
Balance 1,82,000
Add: cheques paid into bank for realization 24,500
2,06,500
Less: cheques issued but not presented for
payment 33,260
1,73,240
Add: stamps in hand 3,661
Total 1,76,901
 SCHEDULE 12-ADVANCES AND OTHER ASSETS
No Particulars (Rs.’000) CY PY
A Advances –
1 Reserve deposits with ceding
companies xxx
2 Application money for investments xxx
3 Pre-payments 1,40,074
4 Advances to directors / officers xxx
5 Advance tax paid & taxes deducted at
source (net of provision for taxation )
Others (to be specified) 60,000
6 Total (A) xxx
2,00,074
 SCHEDULE 12-ADVANCES AND OTHER ASSETS
No Particulars (Rs.’000) CY PY
B Other assets –
1 Income accrued on investments 1,58,500
2 O/s premiums 2,95,000
3 Agents balances 3,01,600
4 Foreign agencies balances xxx
5 Due from other entities carrying on insurance
business (including reinsurance)
Due from subsidiaries / holding company 72,952
6 Deposits with RBI xxx
7 Others (to be specified) xxx
8 Total (B) xxx
Total (A+B) 8,28,052
C 10,28,126
 SCHEDULE 13-CURRENT LIABILITIES
Particulars (Rs.’000) CY PY
Agents balances xxx
Balances due to other insurance companies xxx
Deposits held on reinsurance ceded xxx
Premiums received in advance 50,000
Unallocated premium xxx
Sundry creditors 22,437
Due to subsidiaries / holding company xxx
Claims outstanding 15,00,000
Annuities due 25,895
Due to officers / directors xxx
Others (to be specified) xxx
Total 15,98,332
 SCHEDULE 14 -PROVISIONS
(Rs.’000)
No Particulars (Rs.’000) CY PY

1. Reserve for unexpired risk xxx

2. For taxation (less advance tax paid and
taxes deducted at source) xxx
3. For proposed dividends xxx
4. For dividend distribution tax xxx
5. Others (to be specified) xxx
Total xxx
 SCHEDULE 15-MISCELLANEOUS EXPENDITURE
(to the extent not written or adjusted)
No Particulars (Rs.’000) CY PY
Discount allowed in issue of shares /
debentures
Others (to be specified)
Note: Total
a) No items shall be included under the head miscellaneous expenditure
and carried forward unless
1 Some benefits from the expenditure can reasonably be expected to be
received in future, and
2 The amount of such benefit is reasonably determinable
b) The amount to be carried forward i.r.o. any item included under the
head “miscellaneous expenditure“ shall not exceed the expected
future revenue / other benefits related to the expenditure
 NEW INDIA LIFE ASSURANCE COMPANY LTD.
REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2003
No Particulars (Rs.’000) Schd’le CY PY
1. Premiums earned (Net) 1 37,50,000
a) Premium
b) Reinsurance ceded
c) Reinsurance accepted
2. Income from Investments
a) Interest, dividends & rent (Gross) 16,60,168
b) Profits earned / (Loss suffered) on sale
/ redemption of investments
c) Transfer / gain on revaluation / change
in fair value
3. Other income (to be specified) Transfer fee 3,215
Consideration for Annuities Granted 25,250
Total (A) 54,38,633
Commission 2 50,000
Operating expenses related to
insurance business 3 7,50,213
Provision for doubtful debts xxx
Bed debts written off xxx
Provision for tax xxx
Provisions (other than taxation) –
a) For diminution in the value of
investment (Net) xxx
b) Others (to be specified) xxx
Total (B) 8,00,213
Benefits paid (Net) 23,96,475
Interim bonuses paid xxx
Change in valuation of liability i.r.o. life policies
a) Gross
b) Amount ceded in reinsurance xxx
c) Amount accepted in reinsurance xxx
Total (C) xxx
Surplus (deficit) (D) = (A)-(B)-(C) 23,96,475
Appropriations: 22,41,945
Transferred to shareholders account
Transfer to other reserves (to be specified)
Balance being funds for future appropriations
Total (D)
 BALANCE SHEET OF NEW INDIA LIFE ASSURANCE COMPANY LTD.
AS AT 31ST,MARCH, 2003 (Rs.’000)
No. Particulars Sch’le CY PY
Sources of Funds –
Shareholders Funds:
Share capital 5 1,00,000
Reserve & surplus 6 2,87,51,945
CR / DR fair value change A/C xxx
Sub-Total 2,88,51,945
Borrowings 7 xxx
Policy holders funds xxx
CR / DR fair value change A/C xxx
Policy liabilities xxx
Insurance reserves xxx
Provisions for linked liabilities xxx
Sub-Total xxx
Funds for future appropriations xxx
Total 2,88,51,945
Application of Funds
Investments 8 2,55,00,000
Shareholders 8A xxx
Policy holders 8B xxx
Assets held to cover linked liabilities xxx
Loans 9 24,50,000
Fixed Assets 10 12,95,250
Current Assets:
•Cash & Bank balances 11 1,76,901
•Advances &Other Assets 12 10,28,126
Sub-Total(A) 12,05,027
Current Liabilities 13 15,98,332
Provisions 14 xxx
Sub-Total (B) 15,98,332
Net Current Assets (C) = (A-B) (3,93,305)
Miscellaneous Expenditure (to the extent
not written off or adjusted) xxx
Dr. Bal. in Profit & Loss A/C
(shareholders Account) xxx
Total 2,88,51,945
Thank you