Partnering A

India

24 TH Annual Report & ACCOUNTS 2017-2018

directors’ report

Contents
Twenty-fifth Annual Report of ICICI Securities Primary Dealership Limited............................................................. 2

Twenty-third Annual Report of ICICI Securities Limited.......................................................................................... 32

(a) Eighteenth Annual Report of ICICI Securities Holdings, Inc.............................................................................. 49

(b) Eighteenth Annual Report of ICICI Securities, Inc.............................................................................................. 56

(c) Annual Report of ICICI Securities Limited Consolidated Financials................................................................... 65

Thirtieth Annual Report of ICICI Venture Funds Management Company Limited.................................................. 81

Twenty-third Annual Report of ICICI International Limited.................................................................................... 109

Eighteenth Annual Report of ICICI Prudential Life Insurance Company Limited.................................................. 119

(a) Nineth Annual Report of ICICI Prudential Pension Funds Management Company Limited........................... 274

Eighteenth Annual Report of ICICI Lombard General Insurance Company Limited............................................ 288

Nineteenth Annual Report of ICICI Home Finance Company Limited.................................................................. 340

Eighteenth Annual Report of ICICI Investment Management Company Limited................................................. 372

Nineteenth Annual Report of ICICI Trusteeship Services Limited......................................................................... 387

Fifteenth Annual Report of ICICI Bank UK PLC....................................................................................................... 400

Fourteenth Annual Report of ICICI Bank Canada................................................................................................... 434

Twenty-Fifth Annual Report of ICICI Prudential Asset Management Company Limited...................................... 472

Twenty-Fifth Annual Report of ICICI Prudential Trust Limited............................................................................... 497

 ICICI SECURITIES PRIMARY DEALERSHIP LIMITED
25th ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Auditors Registered Office
N. S. Kannan, Chairman B S R & Co. LLP ICICI Centre
B. Prasanna, Vice Chairman Chartered Accountants H. T. Parekh Marg
Ashvin Parekh Churchgate
Dilip Karnik Mumbai - 400 020
Radhakrishnan Nair Prachiti D. Lalingkar
Shilpa Kumar Company Secretary
Subir Saha
Shailendra Jhingan, Managing Director & CEO

directors’ report
to the members,
Your Directors have pleasure in presenting the Twenty Fifth Annual Report of ICICI Exports were lower while imports rose as share of GDP, as both crude oil and core
Securities Primary Dealership Limited (the Company) along with the audited financial imports i.e. non-oil, non-gold imports increased. Increase in merchandise trade
statement of accounts for the year ended March 31, 2018. deficit was partly offset by the modest increase in invisibles balance led by services.
The CAD in April-December 2017 was comfortably funded by capital flows led by
INDUSTRY OVERVIEW strong inflows of portfolio capital mainly debt flows. FDI flows have however slowed
India’s economic growth moderated in fiscal 2018, even as there was a strong pickup in April-December 2017 at 1.3% of GDP from 1.6% in fiscal 2017. There was BoP
in growth in the second half of fiscal following remonetisation of the economy and surplus of USD 30.4 billion in April-December 2017 or 1.6% of GDP compared to
easing of goods and service tax (GST) linked transition disturbances. As per the 1% in fiscal 2017.
Central Statistical Organization’s second advance estimate, the gross value added Inflation trajectory undershot Reserve Bank of India’s (RBI’s) forecasts in early
(GVA) was estimated to grow 6.4% year-on-year (YoY) in fiscal 2018 compared to fiscal 2018, prompting Monetary Policy Committee (MPC) to first lower the
7.1%YoY in fiscal 2017 and 8.1% YoY in fiscal 2016. The agriculture and industrial inflation forecasts and then ease Monetary Policy in the August Monetary Policy
sectors have contributed to moderation in GVA growth in fiscal 2018 although review by 25 basis points to 6%. Though the stance of Monetary Policy was
services growth has picked up sharply. retained as ‘neutral’, the MPC had earlier in February 2017 shifted its stance from
Moderation in industry GVA growth was broad based, affected by reforms including ‘accommodative’ to ‘neutral’.
demonetization and GST, with all constituents viz. mining, manufacturing and Fiscal 2017 also saw significant global developments which had a bearing on financial
electricity segments witnessing slow down. Weak growth in industry was also markets. The US has cut corporate and income taxes and promised higher spending,
mirrored in deceleration seen in gross fixed capital formation as growth slowed to both of which is expected to widen the fiscal deficit sharply and thereby weakening
7.6%YoY from 10.1% in fiscal 2017. However, growth momentum in manufacturing the dollar. The US Federal Reserve has also hiked the benchmark federal funds rate
sector improved significantly in second half of the fiscal. Agriculture growth slowed three times from a range of 0.75%-1% in April 2017 to 1.5%-1.75% in March 2018
on the back of robust growth seen in fiscal 2017 when ‘normal’ rains provided a and has begun to shrink the balance sheet. The world economic recovery has also
boost after two consecutive years of droughts. While monsoons were ‘normal’ become broad based and growth momentum has improved in Euro Zone and a
in fiscal 2018 as well, spatial distribution was less favourable. On the other hand, number of emerging market economies.
pick up in services GVA was led by stronger growth in ‘construction’, ‘finance, real
estate and professional services’ and the ‘trade, hotels, transport, communication FINANCIAL HIGHLIGHTS
and broadcasting’ segments. Growth in ‘public administration, defence and other
The financial performance for fiscal 2018 is summarised in the following table:
services’ i.e. an indicator of Government spending slowed in fiscal 2018 but to a still
robust 10.1%YoY. (` in million)
Inflationary pressures continued to ease in fiscal 2018 as measured by the consumer Fiscal 2017 Fiscal 2018
price index (CPI). Retail inflation has averaged 3.6%YoY in April 2017 – March 2018
Gross income 16,264.0 11,128.7
as compared to 4.5% average in fiscal 2017 and 4.9% in fiscal 2016. Moderation
in both food and core inflation led the decline in headline inflation. Food inflation Profit before tax 6,340.0 1,731.5
slowed from 4.5%YoY to 2.1%. All major segments in food inflation slowed, with Provision for tax 2,224.1 615.2
a key exception of vegetables. Core inflation as measured by non-food and fuel
inflation slowed modestly to 4.6% from 4.8%. Deceleration in core inflation was also Profit after tax 4,115.9 1,116.3
broad based. The decline would have been sharper but for the rise in Housing CPI
Appropriations
due to technical reason. Fuel inflation rose from 3.3%YoY in fiscal 2017 to 5.3% in
fiscal 2018 as global crude prices rose. Even as CPI inflation slowed, the wholesale Profit after tax for the year ended March 31, 2018 was ` 1,116.3 million. The profit
price index (WPI) inflation accelerated in fiscal 2018. The acceleration was led by available for appropriation is ` 1,922.8 million, taking into account the balance of
fuel WPI inflation as prices of commercial and industrial fuels rose sharply. Core ` 806.5 million brought forward from the previous year.
WPI inflation also increased sharply from -0.1%YoY in fiscal 2017 to 2.9% in April In accordance with the guidelines prescribed by RBI and other applicable
– February 2018. Primary articles inflation slowed, similar to food CPI inflation. WPI guidelines, primary dealers are permitted to have dividend pay-out ratio of more
inflation averaged 2.9%YoY in April – February 2018, from 1.8% in fiscal 2017. than 33.3% but less than 50% provided the capital to risk weighted assets ratio
during all the four quarters of the previous year is at 20% or above. In view of the
Indicators of macro-stability in the economy declined in fiscal 2018, but still remain
significant profits earned by the Company and the comfortable capital adequacy
within comfort bands. Due to weaker than expected revenues from GST in the
ratio, the Company had requested RBI to permit a higher dividend pay-out ratio.
initial months of implementation and shortfall in non-tax revenues, the Government
RBI has approved a dividend pay-out ratio of 70% for FY2018. Accordingly, the
could not achieve the budgeted fiscal deficit target for fiscal 2018 of 3.3% of gross
Company had declared three interim dividends aggregating to 47% on the equity
domestic product (GDP) and revised fiscal deficit printed higher at 3.5%. As per
share capital of the Company. The Company recommends the aggregate of
revised estimates, expenditure exceeded the budget estimates on account of
interim dividend as final dividend. The disposable profit has been appropriated
higher revenue expenditures while capital expenditures were lower as Government
as follows:
attempted to limit the slippage. On the revenue side, non-tax revenues fell short of
budgeted targets even as tax revenues exceeded projections. In the budget for fiscal (` in million)
2019, the Government targets reduction in fiscal deficit to 3.3% of GDP. Further, the Fiscal 2017 Fiscal 2018
Government has revised the future path of fiscal consolidation that was laid out by
the Fiscal Responsibility and Budget Management Review Committee. As per the To Special Reserve 823.2 223.3
new roadmap, Government has committed to lowering the fiscal deficit to 3.1% of To Capital Reserve 170.1 55.8
GDP in fiscal 2020 and to 3% in fiscal 2021. Dividend for the year on equity shares
On the external front, India’s current account deficit (CAD) widened to 1.9% of GDP - Interim Dividend @ 47.0% (Previous Year 170.5%) 2,665.6 734.8
in the first three quarters of fiscal 2018 compared to 0.7% in fiscal 2017, although
- Proposed Dividend -Nil (Previous Year 6.0%) 93.8 -
strong capital flows still ensured a Balance of Payments (BoP) surplus. Trade deficit
increased sharply to 6.2% of GDP in April-December 2017 from 4.9% in fiscal 2017. - Corporate Dividend tax 561.8 149.9

2
directors’ report
Debenture Trustees
As per SEBI circular no. CIR/IMD/DF/18/2013 dated October 29, 2013 read with SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of
Debenture Trustees are as under:
Name: IDBI Trusteeship Services Limited
Contact details – Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate,
Mumbai – 400 001. Tel No. 022-40807008
OPERATIONAL REVIEW
Fixed Income
Bonds broke upward momentum of the last quarter of fiscal 2017 as inflation
surprised on down side and bond prices revisited highs during the first quarter of
fiscal 2018. In the second half of the fiscal, global growth started to gain further
traction which was accompanied by sharp rebound in commodity prices. This led to
higher risk of global central banks unwinding their unprecedented accommodative
monetary policy stance, especially in US. Further, the passage of tax cuts in US led
to US bond yields breaking.
Government securities yields bottomed out in July 2017 and were on northward
journey for rest of the year despite 25 basis points repo rate cut by RBI in August
2017. Weak revenue collection during initial implementation phase of GST led to
announcement of extra market borrowing in December 2017 and this worsened an
already fragile sentiment. Market volumes slowed down and daily volatility of bond
prices increased sharply. The inability to meet the fiscal target for 2018 coupled with
the budgeted higher deficit for fiscal 2019, led to a flurry of bond negative news
which overshadowed few positive news like sovereign rating upgrade by Moody’s.
The Company maintained its dominance in Government securities underwriting
and primary auction subscription of Government securities, SDLs and Treasury Bills
(T-Bills).
The Company successfully met all its regulatory obligations like underwriting
commitments for Government securities and T-Bills. Primary market success in
T-Bills was 43.5% of commitment in fiscal 2018 (as against regulatory requirement
of 40%). Secondary market turnover in Government securities was 229 times the
average stock in fiscal 2018.
The change in stance by MPC in February 2017 had led to market expectations
of an end to the easing cycle in India. This was further strengthened by one of
the MPC members hinting at need for pre-emptive rate hike due to rising CPI.
However, significant undershoot of CPI in the first quarter of fiscal 2018 led to these
expectations being pared down and market pricing in rate cuts by June 2017. Fall
in US yields along with RBI cutting rates in August 2017 policy led to the overnight
index swaps (OIS) curve stabilising at 50-70 basis points lower than April 2017 highs.
Expectations of further easing continued till September 2017 and 5 years OIS traded
around 6.20% compared to a peak of 6.80% in April 2017.
However, the third quarter of fiscal 2018 saw a significant rise in OIS rates with the
5 years OIS giving up the entire 70 basis points fall by December 2017. This was
caused by a number of factors such as rise in US yields, spike in oil prices, overhang
of fiscal slippage, farm loan waivers, CPI trajectory rising above RBI forecast and
persistent rise in bond yields. The last quarter of fiscal 2018 saw volatile trading
in the OIS market, largely driven by huge volatility in bond market and fears of
minimum support price increases leading to higher CPI in second half of fiscal 2019.
The 5 years OIS continued to trade in 6.70%-6.95% range while the timing of rate
hike expectations driving the volatility in short end of the curve.
The Company continued to be an active and aggressive player in the interbank OIS
market throughout the year.
Yields on 10 years corporate bonds followed the state development loans (SDL)
yields for most part of fiscal 2018. The year began with an overhang of supply in
UDAY bonds from fiscal 2017 and spreads between SDL and 10 years benchmark
Government securities averaged 85 basis points in the last quarter of fiscal 2017.
Spreads cooled off slightly in the first quarter of fiscal 2018 as bonds rallied in
anticipation of policy rate cut by RBI after lower than expected CPI prints. As yields
rose sharply after September 2017, the corporate bond yield curve steepened due to
lack of appetite in duration from market participants. Fresh limits for foreign portfolio
investors (FPIs) were also opened in corporate bonds which led to increased
demand in the 3 to 5 years segment for carry trades. FPIs bought a net ` 400.0
billion of corporate bonds in fiscal 2018. A combination of these factors resulted
in an increase in issuance in the shorter end. As Government securities yields
continued to rise, the shorter end eventually caught up with the rest of the curve in
December 2017. Private banks also issued higher than normal commercial papers in
February 2018 due to increased liquidity coverage ratio requirements. Changes in
investment pattern for provident funds and lower than expected SDL borrowing led
to reduction in spreads in the fourth quarter of the fiscal 2018 to 65 basis points over
the benchmark 10 years bond.
Following several years of YoY growth, private placement debt market volumes fell
for the first time to about ` 6,000.0 billion (provisional) in fiscal 2018 from ~ ` 6,400.0
billion in fiscal 2017 as Government securities and corporate bond yields rose
sharply through most of the year. The Company maintained its position amongst
Top-5 in the PRIME League Tables in fiscal 2018 while continuing with its strategy to
prioritise fee income over placement volumes.
The Company’s clients continued to be diversified across sectors including banks,
financial institutions, holding companies, public sector undertakings, non-banking
Continued
finance companies, housing finance companies and infrastructure companies (road
and power sectors).
The Company was the Sole Arranger to one of the rare toll road bond issues in
capital markets (` 1.75 billion issuance by Ahmedabad – Maliya Tollway Limited).
Other key sole issues done by the Company this year include Aptus Value Housing
Finance India Limited, APL Apollo Tubes Limited and partly-paid debentures issued
by Bajaj Finance Limited.
Portfolio Management Services
During the year, the Company continued to provide portfolio management services
to the Employees Provident Fund Organisation under the Ministry of Labour and Coal
Mines Provident Fund Organisation under the Ministry of Coal.
During the year, the Company was re-appointed as advisor to West Bengal State
Electricity Distribution Company Limited (WBSEDCL) General Provident Fund,
WBSEDCL Pension Fund, WBSEDCL Gratuity Fund, West Bengal State Electricity
Board Employees Contributory Provident Fund and CESC Limited Provident Fund.
The Company is proactively targeting new clients to increase its presence in this line
of business.
Risk Management
As a financial services company, risk management forms the core of our various
business operations. The Corporate Risk Management Group (CRMG) is committed
to framing effective and contemporary risk management policies, addressing market
and credit risk. CRMG has developed comprehensive risk management policies,
which seek to minimise risks in the activities of the Company. CRMG develops and
maintains models to assess market risks that are constantly updated to capture
the dynamic nature of the markets and, thus, participates in the evaluation and
introduction of new products and business activities. CRMG also advises the fixed
income division by acting as an investment advisor on possible rating migration and
thereby enables the Company to effectively protect its capital from possible defaults
and rating revisions. CRMG closely monitors the financial profiles of counterparties
(private and public sector companies, banks and financial institutions and others)
through in-depth analysis, regular interactions with the companies and rating
agencies to provide proactive recommendations to the fixed income division.
The Company has an internal Risk Management & IT Strategy Committee comprising
members of the Board of Directors of the Company. The Risk Management & IT
Strategy Committee is, inter alia, responsible for analysing and monitoring the
risks associated with the different business activities of the Company and ensuring
adherence to the risk and investment limits set by the Board of Directors.
On the basis of the robust risk management framework and regular monitoring of all
major risk areas within the Company, the Board is satisfied that there are no factors
that could adversely affect the existence of the Company.
OUTLOOK
The outlook for bond markets in fiscal 2019 will be conditioned by the evolving
inflation dynamics. The baseline inflation outlook appears to be within the MPC’s
comfort zone, however, significant risks to food and fuel prices cloud the outlook. The
rise in global crude prices poses both direct and indirect risks to inflation. Similarly
the promise of the government to hike procurement prices of summer crops also
poses upside risks to inflation. Both these factors could affect inflation expectation
and push up core inflation. These risks will be exacerbated if the recent upswing
in growth outlook sustains through fiscal 2019. The MPC could thus decide to be
proactive and hike policy rates sometime during the year. The backdrop of continued
rate hikes by the US Fed and solid global growth should also contribute to the
MPC’s willingness to tighten policy. In terms of liquidity, excess liquidity conditions
should progressively abate during the year with system liquidity likely alternating
between surplus and deficit in second half of the fiscal. Higher crude prices and/or
stronger dollar are risks that could trigger need for open market operations (OMO)
purchases to achieve these expected neutral liquidity conditions. The stabilisation
and improvement in GST systems and tax collections would determine the ability
of the Government to meet its deficit targets. On the external front, the CAD is seen
widening further with foreign direct investments inflows unlikely to fill the gap.
Accordingly, the BoP will be dependent on unstable sources of capital flows, likely
leading to higher volatility in the Rupee. In the bond market, improvement in market
depth and liquidity is critical to normal functioning of the market and a successful
completion of the borrowing programme. The Company would remain watchful
while capitalizing opportunistically on favourable developments during the year.
VIGIL MECHANISM
The Company has formulated a Whistle Blower Policy. The policy comprehensively
provides an opportunity for any employee/Director of the Company to raise any
issues concerning breaches of law, statute or regulation by the Company, accounting
policies and procedures adopted for any area or item or any act resulting in financial or
reputation loss and misuse of office or suspected/actual fraud and criminal offences.
The policy provides for a mechanism to report such concerns to the Audit Committee
through specified channels. The policy has been periodically communicated to the
employees and also posted on the Company’s intranet. The Whistle Blower Policy
complies with the requirements of Vigil mechanism as stipulated under Section
177 of the Companies Act, 2013. The details of establishment of the Whistle Blower
Policy/Vigil mechanism have been disclosed on the website of the Company.
3
 directors’ report
INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY
The Company has adequate internal controls and processes in place with respect to
its financial statements which provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements. These controls and
processes are driven through various policies, procedures and certifications. The
processes and controls are reviewed periodically. The Company has a mechanism
of testing the controls at regular intervals for their design and operating effectiveness
to ascertain the reliability and authenticity of financial information.
AUDITOR’S REPORT
There are no qualifications, reservations or adverse remarks or disclaimers made by
the Statutory Auditors in their report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The CSR Committee of the Company consists of three directors viz., Dilip Karnik (DIN:
06419513), Shailendra Jhingan (DIN: 07636448) and Subir Saha (DIN: 00227049).
The Company’s primary focus areas for CSR activities are:
• Education
• Health Care
• Skill development and sustainable livelihoods
• Financial inclusion
• Support employee engagement in CSR activities
• Capacity building for corporate social responsibility
• Other areas
The Company partnered with ICICI Foundation for Inclusive Growth to support
the cause of elementary education, primary health, sustainable livelihood and skill
development to achieve the CSR objectives.
The Corporate Social Responsibility Policy as approved by the Board is uploaded on
the Company’s website.
The Annual Report on CSR activities is annexed herewith as Annexure A.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed
herewith as Annexure B.
PUBLIC DEPOSITS
The Company has not accepted any deposit from the public during the year under
review and as such, no amount on account of principal or interest on public deposits
was outstanding as on the date of the balance sheet.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Pursuant to Section 186(11) of the Companies Act, 2013, the provisions of Section
186(4) of the Companies Act, 2013 requiring disclosure in the financial statements of
the full particulars of the loans given, investment made or guarantee given or security
provided and the purpose for which the loan or guarantee or security is proposed to
be utilised by the recipient of the loan or guarantee or security is not applicable to a
non-banking financial company registered under Chapter III of the Reserve Bank of
India Act, 1934 and whose principal business is acquisition of securities.
RELATED PARTY TRANSACTIONS
The Company undertakes various transactions with related parties in the ordinary
course of business. The Company has a Board approved policy on Related Party
Transactions and an arms’ length policy which requires transactions with the group
companies to be at arm’s length. The policy is annexed herewith as Annexure C.i.
The transactions between the Company and its related parties, during fiscal 2018
were in the ordinary course of business and based on the principles of arm’s length.
The details of material related party transactions at an aggregate level for fiscal 2018
is annexed as Annexure C.ii.
ACHIEVEMENTS DURING THE YEAR
The Company was ranked fifth in PRIME league tables on the basis of its performance
as debt arranger and first for “Private Sector - NBFCs / Financial Services”. During
the year, the Company was voted 1st in “Top Bank in Government Bonds, India”,
“Top Bank in Corporate Bonds, India”, “Top Bank Arrangers – Investors’ choice
for Government Primary Issues, India” in 2017 by ‘The Asset’ in the Asset Asian
Awards. The Asset Benchmark Research Awards by ‘The Asset’ has voted two
employees of the Company as 1st in Trading and Research respectively while three
other employees were voted 2nd, 4th and 5th in Sales and another employee was
adjudged “Best Individual in Sales, India, Highly Commended”. The Company was
adjudged 2nd in ‘Most Helpful Traders in Domestic Currencies’ survey by Greenwich
Associates.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Changes in the composition of the Board of Directors and other Key Managerial
Personnel
4
Continued
Pursuant to the provisions of the Articles of Association of the Company, ICICI Bank
Limited, the holding company, has nominated Subir Saha (DIN: 00227049) as its
nominee director on the Board of Directors of the Company effective July 17, 2017.
There was no appointment or cessation of appointment of key managerial personnel
during the financial year.
Independent Directors
As per the provisions of the Companies Act, 2013, independent directors are not
liable to retire by rotation and the terms of appointment of independent directors will
be governed by the provisions of Companies Act, 2013. All independent Directors
have given declarations that they meet the criteria of independence as laid down
under Section 149 of the Companies Act, 2013 which has been relied on by the
Company and placed at the Board Meeting of the Company held on April 17, 2018.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013, Shailendra Jhingan (DIN:
07636448) would retire by rotation at the forthcoming AGM and is eligible for
re-appointment. Shailendra Jhingan (DIN: 07636448) has offered himself for re-
appointment.
PERFORMANCE EVALUATION OF THE BOARD, COMMITTEES AND DIRECTORS
The Company with the approval of its Nomination & Remuneration Committee
has put in place an evaluation framework for evaluation of the Board, Directors,
Chairperson and Committees.
The evaluations for the Board, Directors and committees were done through
circulation of questionnaires. These questionnaires were modified in order to
incorporate the recommendations of the guidance note issued by the Securities &
Exchange Board on India on January 5, 2017 on the evaluation of the committees.
The evaluation for FY2018 was carried out by circulation of four questionnaires, one
for the Chairman, second for the Directors other than the Chairman, third for the
Board and fourth for the Audit Committee, Nomination & Remuneration Committee
and Corporate Social Responsibility Committee which assessed the performance of
the Board on select parameters related to roles, responsibilities and obligations of the
Board and functioning of the Committees including assessing the quality, quantity and
timeliness of flow of information between the Company management and the Board
that is necessary for the Board to effectively and reasonably perform their duties. The
evaluation criteria for the Chairman and Directors was based on their participation,
contribution and offering guidance to and understanding of the areas which are
relevant to them in their capacity as members of the Board. The Nomination &
Remuneration Committee has oversight over compensation. Additionally, the Board
also carries out an evaluation of the working of its Audit Committee, Nomination
& Remuneration Committee and Corporate Social Responsibility Committee. The
evaluation of the Committees is based on the assessment of the compliance with the
terms of reference of the Committees. The Nomination & Remuneration Committee
defines Key Performance Indicators (KPIs) for the Managing Director & CEO and the
organisational performance norms for bonus based on the financial and strategic plan
approved by the Board. The KPIs include both quantitative and qualitative aspects.
The Nomination & Remuneration Committee assesses organisational performance
as well as the individual performance for the Managing Director & CEO. Based on its
assessment, it makes recommendations to the Board regarding compensation for
the Managing Director & CEO.
Remuneration Policy
The Company has in place the remuneration framework for the non-executive
directors and the compensation policy for the whole-time directors, key managerial
personnel and other employees. The Company also has in place the criteria for
determining qualifications, positive attributes and independence of a director.
Meetings
The Board of Directors of the Company meet at regular intervals to discuss and
decide on business policy and strategy apart from other board business. The Board
met four times in the fiscal 2018 viz., on April 17, 2017, July 20, 2017, October 16,
2017 and January 15, 2018.
Sr. Name of the Director Board meetings attended
No. during the year
Independent Directors
1 Dilip Karnik (DIN: 06419513) 4/4
2 Ashvin Parekh (DIN: 06559989) 4/4
3 R K Nair (DIN: 07225354) 4/4
Non-Executive Directors
4 N. S. Kannan (DIN: 00066009) 4/4
5 Prasanna B. (DIN: 02257744) 4/4
6 Shilpa Kumar (DIN: 02404667) 3/4
7 Subir Saha (DIN: 00227049) 3/4
Wholetime Directors
8 Shailendra Jhingan (DIN: 07636448) 4/4
directors’ report
Continued
COMMITTEES OF BOARD Secretarial Auditors
(i) Audit Committee Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
At its meeting held on July 20, 2017, the Board approved the reconstitution of the
2014, the Company with the approval of its Board, appointed Jaiprakash R. Singh
Audit Committee by inducting B. Prasanna (DIN: 02257744) as a member of the
& Associates, a firm of Company Secretaries in Practice to undertake the Secretarial
Audit Committee in place of N. S. Kannan (DIN: 00066009). The Audit Committee
Audit of the Company for fiscal 2018. The Secretarial Audit Report is annexed
comprises of Ashvin Parekh (DIN: 06559989), Dilip Karnik (DIN: 06419513) and
herewith as Annexure D. There are no qualifications, reservation or adverse remark
B. Prasanna (DIN: 02257744) as its members. Ashvin Parekh (DIN: 06559989), an
or disclaimer made by the auditor in the report save and except disclaimer made by
independent Director, is Chairman of the Audit Committee. The Committee meets,
them in discharge of their professional obligation.
inter alia, to review the accounts of the Company and to discuss the audit findings
and recommendations of the internal and statutory auditors. FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
The Audit Committee met four times in the fiscal 2018 viz., on April 17, 2017, July 20, During fiscal 2018, expenditure in foreign currencies amounted to ` 5.1 million
2017, October 16, 2017 and January 15, 2018. (previous year: ` 4.9 million) and earnings in foreign currencies amounted to ` Nil
million (previous year: ` Nil million).
Attendance record of the Members:
PERSONNEL
Name of Member Meetings attended
during the year The statement containing particulars of employees as required under Section 197(12)
of the Companies Act, 2013 read with rule 5(2) of the Companies (Appointment and
Ashvin Parekh (DIN: 06559989) 4/4
Remuneration of Managerial Personnel) Rules, 2014 is given in an annexure and
Dilip Karnik (DIN: 06419513) 4/4 forms part of this report. In terms of Section 136(1) of the Act, the Report and the
N. S. Kannan (DIN: 00066009) 2/2# Accounts are being sent to the shareholders excluding the aforesaid Annexure.
Prasanna B. (DIN: 02257744) 2/2* Any shareholder interested in obtaining a copy of the Annexure may write to the
# ceased to be a Member from the Audit Committee on July 20, 2017 Company Secretary at the Registered Office of the Company.
* inducted as a Member of the Audit Committee at the Board meeting held on July The ratio of the remuneration of each director to the median employee’s
20, 2017 remuneration and such other details in terms of Section 197(12) of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of
(ii) Nomination and Remuneration Committee Managerial Personnel) Rules, 2014 is provided in Annexure E.
The Committee comprises of Dilip Karnik (DIN: 06419513), Ashvin Parekh (DIN:
06559989) and N. S. Kannan (DIN: 00066009) as its members. Dilip Karnik (DIN: ADDITIONAL INFORMATION
06419513), an independent Director, is Chairman of the Committee. The Managing Director of the Company is granted stock options of the holding
company i.e. ICICI Bank Limited (the Bank) which is issued pursuant to the Employee
The Committee met two times in fiscal 2018 on April 11, 2017 and July 20, 2017.
Stock Option Scheme of the Bank.
Attendance record of the Members: In view of the nature of business activities of the Company, the information relating to
conservation of energy and technology absorption, as required under Section 134(3)
Name of Member Meetings attended
during the year (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules,
2014 is not required to be given. The Company has, however, used information
Dilip Karnik (DIN: 06419513) 2/2
technology extensively in its operations.
Ashvin Parekh (DIN: 06559989) 2/2
N. S. Kannan (DIN: 00066009) 2/2 MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL
POSITION OF THE COMPANY
(iii) Corporate Social Responsibility Committee
There are no material changes and commitments affecting the financial position of
The Committee comprises of Dilip Karnik (DIN: 06419513), Subir Saha (DIN:
the Company which have occurred between the end of financial year of the Company
00227049) and Shailendra Jhingan (DIN: 07636448) as its members. Dilip Karnik
to which the Balance Sheet relates and the date of this Report.
(DIN: 06419513), an independent Director, is Chairman of the Committee.
The Committee met two times in fiscal 2018 on April 11, 2017 and January 9, 2018. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE
Attendance record of the Members: COMPANY
Name of Member Meetings attended There are no significant and/or material orders passed by the Regulators or Courts or
during the year Tribunals impacting the going concern status of the Company.
Dilip Karnik (DIN: 06419513) 2/2
DIRECTORS’ RESPONSIBILITY STATEMENT
Subir Saha (DIN: 00227049) 0/2
The Directors of the Company confirm:
Shailendra Jhingan (DIN: 07636448) 2/2
i. that the applicable accounting standards have been followed in the preparation
GENERAL MEETINGS of the annual accounts and that there are no material departures;
The particulars of all general meetings held during the last three years are as follows: ii. that such accounting policies have been selected and applied consistently and
judgments and estimates made are reasonable and prudent, so as to give a true
Particulars Date
and fair view of the state of affairs of the Company at March 31, 2017 and of the
Extra Ordinary General Meeting March 30, 2015
profit of the Company for the year ended on that date;
22nd Annual General Meeting June 25, 2015
iii. that proper and sufficient care has been taken for the maintenance of adequate
Extra Ordinary General Meeting October 1, 2015
accounting records in accordance with the provisions of the Companies Act,
Extra Ordinary General Meeting December 29, 2015 2013 to safeguard the assets of the Company and to prevent and detect fraud
Extra Ordinary General Meeting April 20, 2016 and other irregularities;
23rd Annual General Meeting September 15, 2016
iv. that the annual accounts have been prepared on a ‘going concern’ basis; and
Extra Ordinary General Meeting January 3, 2017
Extra Ordinary General Meeting April 20, 2017 v. 
that proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and
24th Annual General Meeting June 12, 2017
operating effectively.
AUDITORS
CORPORATE PHILOSOPHY AND COMPLIANCE
Statutory Auditors The Company firmly believes that corporate governance and compliance practices
At the AGM held on June 12, 2017 the Members approved the appointment of B S R are of paramount importance to maintain the trust and confidence of its stakeholders
& Co. LLP., Chartered Accountants (ICAI Firm Registration No. 101248W/W-100022) and good reputation of the Company. To ensure transparency, fairness and
as statutory auditors for a period of five years from the conclusion of the twenty objectivity in an organisation’s functioning, the Company has proactively adopted
fourth AGM till the conclusion of the twenty ninth AGM subject to the ratification by best practices as regards corporate governance and compliance. The Company’s
the Members every year. As recommended by the Audit Committee, the Board has policy on compliance with external regulatory requirements is backed by stringent
proposed the re-appointment of B S R & Co. LLP., Chartered Accountants as statutory internal policies and principles to ensure, inter alia, integrity of all personnel involved
auditors for fiscal 2019. The appointment is accordingly proposed in the Notice of in the Company, priority to clients’ interests over proprietary interest, maintenance of
the current AGM vide item no. 4 for ratification by Members. You are requested to confidentiality of client information and prevention of insider trading.
consider their appointment.

5
 directors’ report
INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL), ACT, 2013
There were no complaints reported under the Prevention of Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
ACKNOWLEDGEMENTS
The Directors thank the clients for the confidence reposed, which has enabled the
Company to successfully deliver well-structured solutions through timely execution
in a preferred way.
The Directors thank the Government of India, Reserve Bank of India, Securities and
Exchange Board of India and other statutory authorities for their continued support
to the Company. The Directors also thank the Company’s bankers and lenders.
6
Continued
The Directors express their gratitude for the support and guidance received from
ICICI Bank Limited, the holding company and other group companies.
The Directors also express their sincere appreciation to all the employees for
commendable teamwork, professionalism and contribution during the year.
For and on behalf of the Board
N. S. Kannan
Chairman
Mumbai, May 10, 2018 (DIN:00066009)
directors’ report
Continued

annexure a
ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE BOARD’S REPORT

1. A brief outline of the Company’s CSR policy, including overview of projects or
programs proposed to be undertaken and a reference to the web-link to the
CSR policy and projects or programs:
CSR has been a long-standing commitment at ICICI Securities Primary Dealership
Limited (the Company) and the ICICI Group and forms an integral part of our
activities. The ICICI Group’s contribution to social sector development includes
several pioneering interventions, and is implemented through the involvement
of stakeholders within the Group and the broader community. ICICI Bank
established the ICICI Foundation for Inclusive Growth (ICICI Foundation) in 2008
with a view to significantly expand the ICICI Group’s activities in the area of CSR.
Over the last few years ICICI Foundation has developed significant projects in
specific areas, and has built capabilities for direct project implementation as
opposed to extending financial support to other organisations.
The CSR Policy of the Company sets the framework guiding the Company’s
CSR activities. It outlines the governance structure, operating framework,
monitoring mechanism, and CSR activities that would be undertaken. The CSR
committee is the governing body that articulates the scope of CSR activities
and ensures compliance with the CSR policy. The Company’s CSR activities are
largely focused in the areas of education, health, skill development and financial
inclusion and other activities as the Company may choose to select in fulfilling
its CSR objectives.
The CSR policy was approved by the CSR Committee in October 2014, and
subsequently was put up on the Company’s website. Web-link to the Company’s
CSR policy:
http://www.icicisecuritiespd.com/pdfs/CSR%20Framework%20for%20website.pdf
2. The Composition of the CSR Committee:
 The Company’s CSR Committee comprises one independent Director, one
non-executive Director and the Managing Director & CEO, and is chaired by the
Independent Director. The composition of the Committee is set out below:
• Dilip Karnik, Chairman
• Subir Saha
• Shailendra Jhingan
The functions of the Committee include: review of CSR initiatives undertaken by
the Company; formulation and recommendation to the Board of a CSR Policy
indicating the activities to be undertaken by the Company and any amendments
thereto; reviewing and recommending the annual CSR plan to the Board;
monitoring the CSR activities, implementation of and compliance with the CSR
Policy; and reviewing and implementing, if required, any other matter related to
CSR initiatives as recommended/suggested by RBI or any other body.
3. Average net profit of the company for last three financial years:
The average net profit of the company for the last three financial years calculated
as specified by the Companies Act 2013 was ` 4,228.81 million
4. Prescribed CSR Expenditure (two per cent. of the amount as in item 3 above):
The prescribed CSR expenditure requirement for FY2018 is ` 84.6 million
5. Details of CSR spent during the financial year.
a. Total amount to be spent for the financial year:
Total amount spent towards CSR during FY2018 was ` 84.6 million
b. Amount unspent, if any: Nil

c. Manner in which the amount spent during the financial year is detailed below:

(1) (2) (3) (4) (5) (6) (7) (8)

S.No CSR project Sector in which Projects or programs Amount outlay Amount spent on the Cumulative Amount
or activity the project is (1) Local area or other (budget) project programs Sub-heads: expenditure up spent: Direct
identified covered (2) Specify the State and district where projects or programs (l)  Direct expenditure on to the reporting or through
or programs was undertaken wise projects or programs period implementing
(` in million) 2) overheads (` in million) agency
(` in million
1 Projects • Promoting • 24 vocational skill training centres located 84.6 84.6 219 Amount spent
of ICICI sustainable in Bengaluru, Bhubaneswar, Chennai, through ICICI
Foundation livelihood Coimbatore, Delhi, Durg, Guwahati, Foundation
for Inclusive through Hyderabad, Indore, Jaipur, Karnal, Kochi, for Inclusive
Growth vocational Kolkata, Lucknow, Mohali, Mumbai, Mysore, Growth
skill Nagpur, Narsobawadi, Patna, Pune, Trichy,
development Vadodara and Vijayawada.
projects • Vocational training in locally relevant skills at
ICICI Digital Villages across the country.
• Promoting
• Elementary education projects in Chhattisgarh.
education
Total 84.6

6. In case the Company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof, the Company shall provide the
reasons for not spending the amount in its Board report: Not applicable
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with CSR objectives and the CSR Policy of the Company.

Sd/- Sd/-
Shailendra Jhingan Dilip Karnik
(DIN: 07636448) (DIN: 06419513)
Managing Director & CEO Chairman CSR Committee

7
 directors’ report
Continued

annexure b
Form No. MGT-9

EXTRACT OF ANNUAL RETURN II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

as on the financial year ended on March 31, 2018 All the business activities contributing 10 % or more of the total turnover of the
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the company shall be stated:-
Companies (Management and Administration) Rules, 2014]
Sl. Name and Description of NIC Code of the % to total turnover of
I. REGISTRATION AND OTHER DETAILS: No. main products / services Product/ service the company
i) CIN:- U72900MH1993PLC131900 1. Securities Trading & 6599 94.8
ii)
Registration Date - February 22, 1993 Underwriting
Name of the Company- ICICI Securities Primary Dealership Limited
iii)
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –
iv)
Category / Sub-Category of the Company - Public Unlisted Company
v) Address of the Registered office and contact details - ICICI Centre, H. T. S. Name and address CIN/GLN Holding/ % of Applicable
Parekh Marg, Churchgate, Mumbai – 400020. Tel (91 22) 2288 2460/70 Fax N0 of the company subsidiary/ shares section
associate held
(91 22) 2288 2312/13
 hether listed company Yes / No - Yes, the non-convertible debentures of
vi)
W
1. ICICI Bank Limited, L65190GJ- Holding 100% Section 2
the Company are listed on the WDM segment of BSE Limited. ICICI Bank Towers, 1994PLC021012 Company (46)
Bandra Kurla
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any Complex,
For equity shares- 3i Infotech Ltd. Tower # 5, 3rd to 6th Floor, International Mumbai - 400 051
Infotech Park, Vashi, Navi Mumbai 400 703.
For Debentures- Link Intime India Private Limited, C-13, Pannalal Silk Mills
Compound, LBS Marg, Bhandup West, Mumbai 400078.

IV SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding

Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Demat Physical Total % of Total Demat Physical Total % of Total during the
Shares Shares year
A. Promoters
(1) Indian
a) Individual/HUF
b) Central Govt
c) State Govt(s)
d) Bodies Corp.
e) Banks / FI 15627 7 15634 100% 15627 7 15634 100% Nil
f) Any Other
Sub-total (A) (1):- 15627 7 15634 100% 15627 7 15634 100% Nil
(2) Foreign
a) NRIs -Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil
b) Other –Individuals
c) Bodies Corp.
d) Banks / FI
e) Any Other
Sub-total (A) (2):- Nil Nil Nil Nil Nil Nil Nil Nil Nil
Total share-holding of Promoter (A) = 15627 7 15634 100% 15627 7 15634 100% Nil
(A)(1)+(A)(2)
B. Public Shareholding
1. Institutions
a) Mutual Funds Nil Nil Nil Nil Nil Nil Nil Nil Nil
b) Banks / FI
c) Central Govt
d) State Govt(s)
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) Foreign Venture Capital Funds
i) Others (specify)
Sub-total (B)(1):- Nil Nil Nil Nil Nil Nil Nil Nil Nil
2. Non-Institutions
a) Bodies Corp. Nil Nil Nil Nil Nil Nil Nil Nil Nil
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders holding
nominal share capital upto ` 1 lakh
ii) Individual shareholders holding
nominal share capital in excess
of `1 lakh
c) Others (specify)
Sub-total (B)(2):- Nil Nil Nil Nil Nil Nil Nil Nil Nil
Total Public Shareholding (B)=(B)(1) Nil Nil Nil Nil Nil Nil Nil Nil Nil
+ (B)(2)
C. Shares held by Custodian for GDRs & ADRs
Nil Nil Nil Nil Nil Nil Nil Nil Nil
Grand Total (A+B+C) 15627 7 15634 100% 15627 7 15634 100% Nil

8
directors’ report
Continued
(ii) Shareholding of Promoters

Shareholder’s Name Shareholding at the beginning of the year Share holding at the end of the year % change in
shareholding
during the year
No. of % of total %of Shares Pledged / No. of Shares % of total %of Shares Pledged /
Shares Shares of the encumbered to total Shares of the encumbered to total
company shares company shares
ICICI Bank Limited 15634 100% Nil 15634 100% Nil Nil
(along with its
nominees)
Total 15634 100% Nil 15634 100% Nil Nil

iii) Change in Promoters’ Shareholding – No change in the promoters’ shareholdings in the Company’

Sl. Shareholding at the beginning of the year Cumulative Shareholding during the year
No. No. of shares % of total shares of No. of shares % of total shares
the company of the company
1 At the beginning of the year
2 Date wise Increase / Decrease in Share holding during the year
specifying the reasons for increase / decrease (e.g. allotment /
No change
transfer / bonus / sweat equity etc):
3 At the End of the year (or on the date of separation, if separated
during the year)

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): -

Sl. For Each of the Top 10 Shareholders Shareholding at the beginning of the year Cumulative Shareholding during the year
No.
No. of shares % of total shares of No. of shares % of total shares of
the company the company
1 At the beginning of the year Nil Nil Nil Nil
2 Date wise Increase / Decrease in Share holding during the year Nil Nil Nil Nil
specifying the reasons for increase / decrease (e.g. allotment /
transfer / bonus / sweat equity etc):
3 At the End of the year ( or on the date of separation, if separated Nil Nil Nil Nil
during the year)

(v) Shareholding of Directors and Key Managerial Personnel:

Sl. Name of the Director / KMP Shareholding at the Date wise Increase/Decrease in Shareholding at the end Cummulative Sharehold-
No. beginning of the year shareholding during the year specifying of the year ing during the year
01-Apr-2017 the reasons for increase/decrease 31-Mar-2018
(e.g. allotment/transfer/ bonus/sweat
No. of % of total No. of % of total No. of % of total
equity etc):
Shares shares Shares shares Shares shares
of FV ` of the of FV ` of the of FV ` of the
100,000/- Company 100,000/- Company 100,000/- Company
1 Mr. B. Prasanna* 1 0.006396 - - - 1 0.006396 1 0.006396
2 Mr. Subir Saha* 1 0.006396 - - - 1 0.006396 1 0.006396
3 Mr. Abhijeet Guin* 1 0.006396 - - - 1 0.006396 1 0.006396

* as nominees of ICICI Bank Limited jointly with ICICI Bank Limited. The beneficial interest in these shares vests in ICICI Bank Limited.

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` in million)

Secured Loans Unsecured Deposits Total

excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i. Principal Amount 58,667.9 40,167.8 - 98,835.7
ii. Interest due but not paid - - - -
iii. Interest accrued but not due 10.3 547.6 - 557.9
Total (i+ii+iii) 58,678.2 40,715.4 - 99,393.6
Change in Indebtedness during the financial year
• Addition 22,335,565.0 1,916,045.2 - 24,251,610.3
• Reduction 22,278,219.2 1,916,749.2 - 24,194,968.5
Net Change 57,345.8 (704.0) - 56,641.8
Indebtedness at the end of the financial year
i. Principal Amount 115,911.4 39,490.5 - 155,401.9
ii. Interest due but not paid - - - -
iii. Interest accrued but not due 112.6 520.9 - 633.5
Total (i+ii+iii) 116,024.0 40,011.4 - 156,035.4

9
 directors’ report
Continued
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIALPERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(` in million)

Sl. Particulars of Remuneration Name of MD/WTD/ Total Amount

no Manager
Shailendra Jhingan
1. Gross salary
a. Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 33.4 33.4
b. Value of perquisites u/s 17(2) Income-tax Act, 1961 Nil Nil
c. Profits in lieu of salary under section 17(3) Income-tax Act, 1961 Nil Nil
2. Stock Option Nil Nil
3. Sweat Equity Nil Nil
4. Commission Nil Nil
- as % of profit
- others, specify…
5. Others, please specify Nil Nil
Total (A) 33.4 33.4
Ceiling as per the Act 57.5 126.4

B. Remuneration to other directors

(` in million)

Sl. Particulars of Remuneration Name of Directors Total Amount

no
Mr. Dilip Karnik Mr. Ashvin Parekh Mr. R. K. Nair
1. Independent Directors
• Fee for attending board /committee meetings 0.64 0.52 0.48 1.64
• Commission 0.75 0.75 0.75 2.25
• Others, please specify - - - -
Total (1) 1.39 1.27 1.23 3.89
2. Other Non-Executive Directors - - - -
• Fee for attending board /committee meetings
• Commission
• Others, please specify
Total (2) - - - -
Total (B)=(1+2) 1.39 1.27 1.23 3.89
Total Managerial Remuneration 37.29
Overall Ceiling as per the Act 126.4

C. Remuneration to key managerial personnel other than MD/Manager/WTD

(` in million)

Sl. Particulars of Key Managerial Personnel

no. Remuneration
Prachiti D. Lalingkar Abhijeet Guin Total
Company Secretary CFO
1. Gross salary
a. Salary as per provisions contained in section 17(1) of the Income-tax 6.54 12.85 19.39
Act, 1961 Nil
b. Value of perquisites u/s 17(2) Income-tax Act, 1961 Nil Nil Nil
c. Profits in lieu of salary under section 17(3) Income-tax Act, 1961 Nil Nil
2. Stock Option Nil Nil Nil
3. Sweat Equity Nil Nil Nil
4. Commission Nil Nil Nil
- as % of profit
-others, specify…
5. Others, please specify Nil Nil Nil
Total 6.54 12.85 19.39

10
directors’ report
Continued
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Section of the Brief Description Details of Penalty / Authority [RD / NCLT Appeal made, if any
Companies Act Punishment/ Compounding / COURT] (give Details)
fees imposed
A. COMPANY
Penalty Nil Not applicable Not applicable Not applicable Not applicable
Punishment Nil Not applicable Not applicable Not applicable Not applicable
Compounding Nil Not applicable Not applicable Not applicable Not applicable
B. DIRECTORS
Penalty Nil Not applicable Not applicable Not applicable Not applicable
Punishment Nil Not applicable Not applicable Not applicable Not applicable
Compounding Nil Not applicable Not applicable Not applicable Not applicable
C. OTHER OFFICERS IN DEFAULT
Penalty Nil Not applicable Not applicable Not applicable Not applicable
Punishment Nil Not applicable Not applicable Not applicable Not applicable
Compounding Nil Not applicable Not applicable Not applicable Not applicable

For and on behalf of the Board

N. S. KaNnan
(DIN: 00066009)
Chairman

annexure c.i
Related Party Transactions
The Companies Act, 2013 (‘Companies Act’ or ‘the Act’) has introduced Sections
177 and 188 effective from April 1, 2014, which contain provisions regarding related
party transactions. These sections, along with the relevant Rules framed under the
Act, have introduced certain compliance and approval requirements pertaining to
the related party transactions.
Accordingly, the Board of Directors (the Board) of ICICI Securities Primary Dealership
Limited (I-Sec PD) has adopted a framework for related party transactions. The Audit
Committee of I-Sec PD will review the framework from time to time and propose any
modifications to the Board for approval. The salient features of the framework are
summarized below:
I. Definition and identification of related parties
The term “related party” has been defined in the Companies Act and Accounting
Standard (AS) 18. The related party relationships described under Companies
Act are more comprehensive and substantially cover the relationships identified
under AS18.
Accordingly, the framework for compliance in the matter of related party
transactions is made applicable to all related parties specified under both,
Companies Act as well as AS-18.
In terms of the Companies Act, the expression ‘arm’s length transaction’ means
a transaction between two related parties that is conducted as if they were
unrelated, so that there is no conflict of interest. A transaction with a related
party will be considered to be on arm’s length basis if the key terms, including
pricing of the transaction, taken as a whole, are comparable with those of
similar transactions if they would have been undertaken with unrelated parties.
II. Approval of transactions with related parties by the Audit Committee, the
Board and the shareholders
a. Approval of related party transactions by the Audit Committee
 All the transactions which are identified as related party transactions
should be pre-approved by the Audit Committee before entering into such
transaction. The Audit Committee shall consider all relevant factors while
deliberating the related party transactions for its approval.
Any member of the Committee who has a potential interest in any related
party transaction will recuse himself and abstain from discussion and voting
on the approval of the related party transaction. A related party transaction
which is (i) not in the ordinary course of business, or (ii) not at arm’s length
price, would require approval of the Board of Directors or of shareholders
as discussed subsequently.
The Audit Committee may grant omnibus approval for related party
transactions which are repetitive in nature and subject to certain criteria/
conditions as required under Companies Act, 2013 and Rules framed
thereunder and such other conditions as it may consider necessary in line
with this policy and in the interest of I-Sec PD. Such omnibus approval shall
be valid for one financial year.
Audit Committee shall review, at periodic intervals, the details of related
party transactions entered into by I-Sec PD pursuant to the omnibus
approval. In connection with any review of a related party transaction,
the Audit Committee has authority to modify or waive any procedural
requirements of this policy.
A related party transaction entered into by I-Sec PD, which is not under the
omnibus approval or otherwise pre-approved by the Audit Committee, will
be placed before the Audit Committee for ratification.
b. Approval of related party transactions by the Board of Directors
In case any related party transactions are referred by I-Sec PD to the Board
for its approval due to the transaction being (i) not in the ordinary course
of business, or (ii) not at an arm’s length price, the Board will consider
such factors as, nature of the transaction, material terms, the manner of
determining the pricing and the business rationale for entering into such
transaction. On such consideration, the Board may approve the transaction
or may require such modifications to transaction terms as it deems
appropriate under the circumstances. Any member of the Board who has
any interest in any related party transaction will recuse himself and abstain
from discussion and voting on the approval of the related party transaction.
c. Approval of related party transactions by shareholders
If a related party transactions is not in the ordinary course of business, or not
at arm’s length price and exceeds certain thresholds prescribed under the
Companies Act, 2013, it shall require shareholders’ approval by a resolution. In
such a case, any member who is a related party having interest in the transaction
for which resolution being proposed, shall not vote on such resolution passed
for approving related party transaction. However the shareholders’ approval is
not required for the transactions entered into between the holding company
and its wholly owned subsidiaries whose accounts are consolidated with the
holding company and placed before its shareholders at the general meeting.
III. Reporting of the related party transactions
Every contract or arrangement, which is required to be approved by the Board/
shareholders under this Policy, shall be referred to in the Board’s report to
the shareholders along with the justification for entering into such contract
or arrangement. Additionally, reporting of details of material contracts or
arrangements or transactions in Form No. AOC-2 shall also be made. In this
regard, since materiality has not been defined for this purpose under the Act,
the same threshold limits will be used as defined under the Act for transactions
requiring shareholders’ approval.

11
 directors’ report
Continued

annexure c.ii
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies
Act, 2013 including certain arm’s length transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis -- NIL
2. Details of material contracts or arrangement or transactions at arm’s length basis:
The Company undertakes various transactions with related parties in the ordinary course of business. The Company has a Board approved policy on Related Party Transactions
and an arms’ length policy which requires transactions with the group companies to be at arm’s length. The transactions between the Company and its related parties, during
the year ended March 31, 2018, were based on the principles of arm’s length.
The details of material related party transactions at an aggregate level for year ended March 31, 2018:

Sr.no Nature of contracts/ Name of the related party Nature of relationship Duration of contracts Salient terms of ` in million
transactions contracts/ transactions

1 Short-term borrowing by ICICI Bank Limited Holding Company Various maturities Interest at market rate 162,483.6
the Company
2 Purchase of government ICICI Bank Limited Holding Company - At market price 10,372.1
securities, bonds/ ICICI Lombard General Insurance Fellow Subsidiary - At market price 549.4
debentures of third parties Company Limited

ICICI Prudential Life Insurance Fellow Subsidiary - At market price 4,392.7

Company Limited
3 Short Term Lending ICICI Bank Limited Holding Company - Interest at market rate 1,000.0
4 Sale of government ICICI Bank Limited Holding Company - At market price 39,897.9
securities, bonds/ ICICI Prudential Life Insurance Fellow Subsidiary - At market price 12,941.2
debentures of third parties Company Limited

ICICI Lombard General Insurance Fellow Subsidiary - At market price 1,053.3

Company Limited
5 Notional Principal ICICI Bank Limited Holding Company Various maturities At market rates 876,500.0
amounts of interest rate
swaps

For and on behalf of the Board

N. S. Kannan
(DIN: 00066009)
Chairman

annexure d
SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018.
[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members
ICICI Securities Primary Dealership Limited
ICICI Centre, H.T. Parekh Marg.
MUMBAI-400 020.
Dear Sirs,
I have conducted the secretarial audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by ICICI SECURITIES
PRIMARY DEALERSHIP LIMITED (hereinafter called the Company). Secretarial Audit
was conducted in a manner that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing my opinion thereon.
Based on our verification of ICICI SECURITIES PRIMARY DEALERSHIP LIMITED’s
books, papers, minute books, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its officers,
agents and authorized representatives during the conduct of secretarial audit,
I hereby report that in my opinion, the Company has, during the audit period
covering the financial year ended on 31st March, 2018, complied with the statutory
provisions listed hereunder and also that the Company has proper Board-processes
and compliance-mechanism in place to the extent, in the manner and subject to the
reporting made hereinafter:
1. I have examined the books, papers, minute books, forms and returns filed and
other records maintained by ICICI SECURITIES PRIMARY DEALERSHIP LIMITED
(“The Company”) for the financial year ended on 31st March,2018 according to
the provisions of:
I. The Companies Act, 2013 (the Act) and the Rules made thereunder;
II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made
thereunder;
III. 
The Depositories Act, 1996 and the Regulations and Bye-laws framed
thereunder;
IV. The Foreign Exchange Management Act, 1999 and FDI Regulations.
V. The following Regulations and Guidelines prescribed under the Securities
and Exchange Board of India Act, 1992 (‘SEBI Act’) as amended till date to
the extent applicable to the Company:-
The Securities and Exchange Board of India (Prohibition of Insider
a) 
Trading) Regulations, 2015.
b) 
The Securities and Exchange Board of India (Merchant Bankers)
Regulations,1992;
c) The Securities and Exchange Board of India (Underwriters) Regulations,
1993
d) Bye Laws of Stock exchange;
e) The Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008;
f) Securities & Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
g) The Securities and Exchange Board of India (Stockbrokers and Sub
brokers) Regulations, 1992;
h) The Securities and Exchange Board of India (Certification of Associated
Persons in Securities Markets) Regulations, 2007;

12
directors’ report
i) 
Circulars Issued by Association of Mutual Funds in India/ SEBI for
Mutual Funds Distributors;
j) Prevention of Money Laundering Act 2002 and guidelines issued by
SEBI/RBI/FIU
k) 
The Securities and Exchange Board of India (Portfolio Managers)
Regulations, 1993 and Securities and Exchange Board of India
(Investment Advisers) Regulations, 2013.
VI. Other applicable laws:
a) The Payment of Gratuity Act, 1972;
b) 
The Employees Provident Funds and Miscellaneous Provisions Act,
1952;
c) The Bombay Shops and Establishments Act, 1948;
d) Contract Labour (Regulation and Abolition) Act,1970;
e) The Maternity Benefit Act, 1961;
f) The Payment of Bonus Act, 1965;
g) Employees State Insurance Act, 1948.
h) Non- Banking Finance Companies Regulations issued by the Reserve
Bank of India (RBI)
RBI’s Operational Guidelines, Prudential Guidelines for the Primary
i) 
Dealers in Government Securities Market, Capital Adequacy Standards
and Risk Management Guidelines for Standalone Primary Dealers,
guidelines applicable for currency futures and other guidelines
applicable to primary dealers.
j) Interest Rate Futures (Reserve Bank) Directions, 2013.
k) The Negotiable Instruments Act, 1881 to the extent of Section 138.
l) Sarbanes Oxley Act,2002 (to the extent applicable)
m) 
Maharashtra State Tax on Professions, Trades, Callings
Employments Act, 1975
n) The Indian Trust Act, 1882 and
I have also examined compliance with the applicable clauses of the following:
i) Secretarial Standards issued by The Institute of Company Secretaries of India.
ii) The Debt Listing Agreements entered into by the Company with the BSE
Limited.
During the period under review the Company has complied with the provisions
of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.
I have relied on the representation made by the Company and its various heads
for systems and mechanism formed by the Company for compliances under
other applicable Acts, Laws and Regulations to the Company.
I further report that the Company has, in my opinion, complied with the
2. 
provisions of the Companies Act, 1956 and the Rules made under that Act and
the provisions of Companies Act, 2013 as notified by Ministry of Corporate
Affairs and the Memorandum and Articles of Association of the Company, with
regard to:
a) 
maintenance of various statutory registers and documents and making
necessary entries therein;
b) closure of the Register of Members;
c) forms, returns, documents and resolutions required to be filed with the
Registrar of Companies and the Central Government;
d) service of documents by the Company on its Members, Auditors and the
Registrar of Companies;
e) notice of Board meetings and Committee meetings of Directors;
f) the meetings of Directors and Committees of Directors including passing of
resolutions by circulation;
g) the 24th Annual General Meeting held on 12th June 2017.
h) 
minutes of proceedings of General Meetings and of the Board and its
Committee meetings;
i) 
approvals of the Members, the Board of Directors, the Committees of
Directors and the government authorities, wherever required;
j) 
constitution of the Board of Directors / Committee(s) of Directors,
appointment, retirement and reappointment of Directors including the
Managing Director;
Continued
k) payment of remuneration to Directors including the Managing Director;
l) appointment and remuneration of Auditors ;
m) declaration and payment of dividends;
During the period under review, the Company has complied with the provisions
of the Acts, Rules, Regulations, Guidelines, Standards, etc. as mentioned above.
3. I further report that:
The Board of Directors of the Company is duly constituted with proper
balance of Executive Directors, Non-Executive Directors, Woman Director
and Independent Directors. The changes in the composition of the Board of
Directors that took place during the period under review were carried out in
compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings,
agenda and detailed notes on agenda were sent generally at least seven days
in advance, and a system exists for seeking and obtaining further information
and clarifications on the agenda items before the meeting and for meaningful
participation at the meeting.
Majority decision is carried through and none of the members have expressed
their dissent.
I further report that:
Based on the information received and records maintained, there are adequate
systems and processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance with applicable
laws, rules, regulations and guidelines.
Jaiprakash Singh
Jaiprakash R Singh & Associates
Place: Mumbai FCS No.:7391
Date: 07/04/2018 C P No.:4412
and
ENCL: Annexure A.
‘ANNEXURE A’
To,
The Members
ICICI Securities Primary Dealership Limited
ICICI Centre, H.T. Parekh Marg.
MUMBAI-400020.
Our report of even date is to read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these secretarial
records based on our audit.
2. We have followed the audit practices and processes as were appropriate to
obtain reasonable assurance about the correctness of the contents of the
Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in the Secretarial records. We believe that the processes and
practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records
and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about
the compliance of laws, rules and regulations and happening of events, etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules,
regulations, standards is the responsibility of the management. Our examination
was limited to the verification of procedures on test basis.
6. The Secretarial Audit Report is neither an assurance as to the future viability of
the Company nor of the efficacy or effectiveness with which the management
has conducted the affairs of the Company.
Jaiprakash Singh
Jaiprakash R Singh & Associates
Place: Mumbai FCS No.:7391
Date: 07/04/2018 C P No.:4412
ENCL: Annexure A.
13
 directors’ report
annexure e
Disclosures required with respect to Companies Act, Section 197(12)
The ratio of the remuneration of each director to the median employee’s
remuneration and such other details in terms of Section 197(12) of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
(i) The ratio of the remuneration of each Director to the median remuneration of
the employees of the Company for the financial year;
Shailendra Jhingan 5.07:1
(ii) 
The percentage increase in remuneration of each director, Chief Financial
Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the
financial year;
 The percentage increase in remuneration of each Director, Chief Financial
Officer, Chief Executive Officer and Company Secretary ranges between 5.80%
and 11.91%.
(iii) The percentage increase in the median remuneration of employees in the
financial year;
 The percentage increase in the median remuneration of employees in the
financial year is around 8.04 %.
(iv) The number of permanent employees on the rolls of company;
The number of employees on permanent payrolls of the Company at March 31,
2018 is 75.
(v) Average percentile increase already made in the salaries of employees other
14
Continued
than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase
in the managerial remuneration;
The average percentage increase made in the salaries of total employees other
than the KMPs for FY2018 is around 7.23%, while the average increase in the
remuneration of the KMPs is in the range of 5.80% to 11.91%.
The Company follows prudent remuneration practices under the guidance of the
Board and the Nomination & Remuneration Committee (NRC). The Company’s
approach to remuneration is intended to drive meritocracy within the framework
of prudent risk management. Remuneration is linked to corporate performance,
business performance and individual performance.
The Company has a judicious and prudent approach to compensation and
does not use compensation as the sole lever to attract and retain employees.
Employee compensation takes into account a mix of external market pay
and internal equity. The total compensation is a prudent mix of fixed pay and
variable pay.
The increase in remuneration is a function of factors outlined above. The
performance of the Company has bearing on the quantum of variable pay
declared for employees across levels.
(vi) Affirmation that the remuneration is as per the remuneration policy of the
company.
Yes
independent auditors’ report
to the members of ICICI Securities Primary Dealership Limited
Report on the financial statements
We have audited the accompanying financial statements of ICICI Securities Primary
Dealership Limited (the “Company”), which comprise the Balance Sheet as at 31
March 2018, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies and other
explanatory information.
Management’s responsibility for the financial statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (the “Act”) with respect to the preparation of these
financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit. We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified
under Section 143 (10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to
the Company’s preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the Company’s
Directors, as well as evaluating the overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
the auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the
audit evidence obtained up to the date of the auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by
the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the
Company as at 31 March 2018, and its profits and its cash flows for the year ended
on that date.
Other matter
The comparative financial information of the Company for the year ended 31 March
2017 as included in these financial statements have been audited by the predecessor
auditor who had audited the financial statements for the year ended 31 March 2017.
The report of the predecessor auditor on the comparative financial information
dated 17 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
Report on other legal and regulatory requirements
As required by the Companies (Auditor’s Report) Order, 2016 (the “Order”) issued
by the Central Government of India in terms of sub section (11) of section 143 of the
Act, we give in the Annexure A, a statement on the matters specified in paragraph 3
and 4 of the Order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by
the Company so far as it appears from our examination of those books;
c) 
The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on 31
March 2018 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2018 from being appointed as a director in terms of
Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to
the financial statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure B”; and
g) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations
given to us:
i. 
the Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer Note 29 to the financial
statements;
ii. the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. there are no amounts which are required to be transferred to the Investor
Education and Protection Fund by the Company; and
iv. The disclosures in the financial statements regarding holdings as well as
dealings in specified bank notes during the period from 8 November 2016
to 30 December 2016 have not been made since they do not pertain to the
financial year ended 31 March 2018.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248 W/W-100022
Milind Ranade
Place of Signature: Mumbai Partner
Date: 17 April 2018 Membership No: 100564
15
annexure A to the independent auditors’ report
The Annexure referred to in the Independent Auditor’s Report to the members of b) 
According to the information and explanations given to us, there are
ICICI Securities Primary Dealership Limited (the “Company”) on the standalone following dues in respect of income-tax on account of pending dispute with
financial statements for the year ended 31 March 2018, we report that: the statutory authorities:
(i) (a) 
The Company has maintained proper records showing full particulars, Name of Assessment Amount Forum where dispute is pending
including quantitative details and situation of fixed assets. the statute Year (AY)
(b) The Company has a regular programme of physical verification of its fixed Income Tax AY 10-11 9,84,157 Assessing Officer
assets by which all fixed assets are verified every year. In accordance Act, 1961 AY 11-12 11,31,522 Commissioner of Income Tax
with this programme, all the fixed assets have been physically verified by (Appeals) - Mumbai
management during the year and no material discrepancies have been AY 2012-13 5,31,174 Assessing Officer
noticed on such verification. In our opinion, this periodicity of physical AY 2013-14 25,86,353 Commissioner of Income Tax
verification is reasonable having regard to the size of the Company and the (Appeals) - Mumbai
nature of its assets.
The Company does not have any immovable properties. Accordingly, para (viii) In our opinion and according to the information and explanations given to us,
3(i)(c) of the Order is not applicable to the Company. the Company has not defaulted in repayment of dues to a financial institution,
(ii) The Company’s stock mainly consists of Government securities and Treasury bank or debenture holders.
bills, held in the form of Subsidiary General Ledger (SGL) maintained with (ix) According to the information and explanations given to us, the Company
Reserve Bank of India (RBI). The said stocks are verified by the management has applied the money raised by way of debt instruments in the nature of
with the confirmation statement from CCIL (“Clearing Corporation of debentures and commercial papers for the purposes for which those are
India Ltd”) at regular intervals. The stock of other securities are held by raised.
the Company in Demat form with the custodian and holding of the same (x) According to the information and explanations given to us, no material fraud on
is verified from the confirmation received from the custodian on regular or by the Company or its officers or employees has been noticed or reported
basis. In our opinion, the frequency of such verification is reasonable. The during the course of the year.
Company is maintaining proper records of securities held as stock in trade
and no discrepancies were noticed on comparing these statements with the According to the information and explanations given to us, managerial
(xi) 
books of account remuneration has been paid/ provided in accordance with the provisions of
Section 197 read with Schedule V to the Companies Act.
(iii) According to the information and explanations given to us, the Company has
not granted any loans, secured or unsecured, to companies, firms, Limited (xii) In our opinion and according to the information and explanations given to us,
Liability Partnerships or other parties covered in the register maintained the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order
under section 189 of the Act. Thus, paragraph 3(iii) of the Order is not is not applicable.
applicable. (xiii) According to the information and explanations given to us and on the basis of
(iv) In our opinion and according to the information and explanations given to our examination of the records of the Company, transactions with the related
us, the Company has not granted any loans, made investments or provided parties are in compliance with section 177 and 188 of the Act where applicable
guarantees and securities under Section 185 and 186 of the Act. Accordingly, and the details have been disclosed in the financial statements, as required by
para 3(iv) of the Order is not applicable. the applicable accounting standards.
(v) According to the information and explanations given to us, the Company has (xiv) According to the information and explanations given to us and based on our
not accepted any deposits from the public to which the directives issued by examination of the records of the Company, the Company has not made any
the Reserve Bank of India and the provisions of Section 73 to Section 76 or any preferential allotment or private placement of shares or fully or partly convertible
other relevant provisions of the Act and the rules framed there under apply. debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not
Thus, paragraph 3(v) of the Order is not applicable. applicable.
(vi) The Central Government has not prescribed the maintenance of cost records (xv) According to the information and explanations given to us and based on our
under sub section (1) of section 148 of the Act for any of the services rendered examination of the records of the Company, the Company has not entered
by the Company. Thus, paragraph 3(vi) of the Order is not applicable. into any non-cash transactions with directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and on the
basis of our examination of the books of account, amounts deducted (xvi) The Company has obtained registration under section 45-IA of the Reserve Bank
/ accrued in the books of account in respect of undisputed statutory of India Act, 1934.
dues including provident fund, income-tax, service tax and other
material statutory dues have generally been deposited during the year For B S R & Co. LLP
by the Company with the appropriate authorities. As explained to us, Chartered Accountants
Firm’s Registration No: 101248 W/W-100022
the Company did not have any dues on account of excise duty, wealth
tax, sales tax and cess. According to the information and explanations Milind Ranade
given to us, no undisputed amounts payable in respect of provident fund, Place of Signature: Mumbai Partner
income-tax, service tax and other material statutory dues were in arrears Date: 17 April 2018 Membership No: 100564
as at 31 March 2018 for a period of more than six months from the date
they became payable.

16
directors’Breport
annexure
To the independent Auditor’s Report of even date on the standalone financial statements of
icici Securities Primary Dealership Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial reporting of ICICI
Securities Primary Dealership Limited (the “Company”) as of 31 March 2018 in
conjunction with our audit of the financial statements of the Company for the year
ended on that date.
Management’s responsibility for internal financial controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India (the “ICAI”). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence
to the Company’s policies, safeguarding of its assets, prevention and detection of
frauds and errors, accuracy and completeness of the accounting records, and timely
preparation of reliable financial information, as required under the Act.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Auditing, issued by the
ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
Continued
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
Inherent limitations of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248 W/W-100022
Milind Ranade
Place of Signature: Mumbai Partner
Date: 17 April 2018 Membership No: 100564
17
balance sheet statement of profit and loss
directors’ report
as at March 31, 2018 for the year ended March 31, 2018 Continued

(` in million)
(` in million) For the For the
As at As at year ended year ended
Notes March 31, 2018 March 31, 2017 Notes March 31, 2018 March 31, 2017
I EQUITY AND LIABILITIES
Revenue from Operations
Shareholders' Funds
A. Share Capital 2 1,563.4 1,563.4 (a) Interest & Dividend Income 19 10,343.1 10,480.9

B. Reserves and Surplus 3 8,179.0 7,871.8 (b) Profit/(Loss) on Securities (Net) 20 111.5 5,192.1
9,742.4 9,435.2
(c) Income from Services 21 673.7 589.5
Non-Current Liabilities
A. Long Term Borrowings 4 4,750.0 4,250.0 11,128.3 16,262.5
B. Deferred Tax Liabilities (Net) 5 315.3 329.0
Other Income 22 0.4 1.5
C. Long Term Provisions 6 80.0 71.6
5,145.3 4,650.6 Total Revenue 11,128.7 16,264.0
Current Liabilities
Less : Expenses
A. Short Term Borrowings 7 150,651.9 94,585.7
B. Trade Payables 8 1,015.2 257.0 (a) Finance Cost 23 8,244.0 8,658.4
C. Other Current Liabilities 9 5,863.5 19,593.5 (b) Employee Benefit Expenses 24 600.5 701.1
D. Short Term Provisions 10 1.4 1.6
Depreciation & Amortisation
(c)  11 13.3 14.9
157,532.0 114,437.8
Expenses
172,419.7 128,523.6
II ASSETS Operating, Establishment and
(d)  25 539.4 549.6
Other Expenses
Non-Current Assets
A. Property, Plant & Equipment 11 Total Expenses 9,397.2 9,924.0
(i) Tangible Assets 12.1 11.5
Profit before Tax 1,731.5 6,340.0
(ii) Intangible Assets 6.2 14.3
B. Non-Current Investments 12 3,098.6 1,573.5 Tax Expense
C. Long Term Loans and Advances 13 313.6 193.8
(a) Current Tax 629.0 1,971.0
3,430.5 1,793.1
Current Assets (b) Deferred Tax (13.8) 253.1
A. Inventories - Securities Held as 14 151,358.7 93,351.4 Total Tax 615.2 2,224.1
Stock in Trade
B. Trade Receivables 15 10,183.6 22,471.7 Profit after Tax 1,116.3 4,115.9
C. Cash and Cash Equivalents 16 872.9 1,691.2
Earnings per share (Basic & Diluted) 26 71,404.6 263,269.2
D. Short Term Loans and Advances 17 2,585.5 5,751.1
E. Other Current Assets 18 3,988.5 3,465.1 (Face value ` 1,00,000/- per share
(Previous Year ` 1,00,000/- per share)
168,989.2 126,730.5
172,419.7 128,523.6 Significant Accounting Policies 1
Significant Accounting Policies 1

The accompanying notes are an integral part of the Financial Statements.

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP N. S. KANNAN ASHVIN PAREKH SHAILENDRA JHINGAN

ICAI Firm Registration No.101248W/W-100022 Chairman Director Managing Director & CEO
Chartered Accountants DIN : 00066009 DIN : 06559989 DIN : 07636448

per MILIND RANADE ABHIJEET GUIN PRACHITI LALINGKAR

Partner Chief Financial Officer Company Secretary
Membership No: 100564

Mumbai, April 17, 2018

18
notes
forming part of the accounts
NOTES ANNEXED TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR
ENDED MARCH 31 2018
Basis of Preparation
The financial statements of the Company have been prepared in accordance with
the generally accepted accounting principles in India (Indian GAAP). The Company
has prepared these financial statements to comply in all material respects with the
accounting standards notified under section 133 of the Companies Act 2013, read
together with paragraph 7 of the Companies (Accounts) Rules 2014, Companies
(Accounting Standards) Amendment Rules, 2016 and circulars and guidelines issued
by The Reserve Bank of India (‘RBI’) from time to time to the extent applicable. The
financial statements have been prepared on accrual basis and under the historical
cost convention except in case of assets for which provision for impairment is made
and revaluation is carried out.
The accounting policies adopted in the preparation of financial statements are
consistent with those of previous year, except for the change in accounting policy
explained in note (iii).
1. Significant Accounting Policies
(i) Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires
management to make judgments, estimates and assumptions that affect the
reported amounts of revenue expenses, assets and liabilities and disclosure
of contingent liabilities at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events
and actions, uncertainty about these assumptions and estimates could result in
the outcomes requiring a material adjustment to the carrying amounts of assets
or liabilities in future periods.
(ii) Revenue Recognition
Revenue is recognized to the extent that it is probable that economic benefits
will flow to the Company and the revenue can be reliably measured.
(a) 
Revenue from issue management, loan syndication, financial advisory
services is recognized based on the stage of completion of assignments
and terms of agreement with the client.
(b) Gains and losses on dealing with securities are recognized on trade date.
(c) Interest income is accounted on an accrual basis except for non- performing
/ doubtful assets, interest in respect of which is recognized, considering
prudential norms for income recognition issued by Reserve Bank of India
(RBI) for Non-Banking Financial Companies on a realization basis.
Dividend income is recognized when the shareholders’ right to receive
(d) 
payment is established by the reporting date.
(e) All other incomes are recognized on accrual basis.
(iii) Inventories - Securities Held as Stock in Trade
(a) The securities acquired with the intention of holding for short-term and
trading are classified as stock-in-trade.
(b) The securities held as stock-in-trade are valued at lower of cost arrived at
on FIFO basis or market/ fair value, computed category-wise. In case of
investments transferred to stock-in-trade, carrying amount on the date of
transfer is considered as cost. Commission earned in respect of securities
acquired upon devolvement is reduced from the cost of acquisition. Fair
value of unquoted shares is taken at break-up value of shares as per the
latest audited balance sheet of the concerned Company. In case of debt
instruments, fair value is worked out on the basis of yield to maturity rate
selected considering quotes, where available and credit profile of the issuer
and market related spreads over the government securities.
(c) During the period, with effect from September 14, 2017, the Company
has changed the method of determining the cost of equity shares and
warrants (forming part of Inventories - Securities Held as Stock in Trade,
from weighted average basis to FIFO (First in First Out) basis. The impact
of this change on the financial statements for the year ended March 31,
2018 is not material.
(d) 
Discounted instruments like treasury bills/ zero coupon instruments
are valued at carrying cost or market/fair value whichever is lower. The
difference between the acquisition cost and the redemption value of
discounted instruments is apportioned on a constant yield basis for the
period of holding and recognized as Interest income.
(e) Discounted instruments like commercial papers / certificate of deposits are
valued at carrying cost. The difference between the acquisition cost and the
redemption value of discounted instruments is apportioned on a constant
yield basis for the period of holding and recognized as Interest income.
(f) Units of mutual fund are valued at lower of cost and net asset value.
(g) 
The secondary market short sale transactions in Government
securities as permitted by RBI Circular no, RBI/2006-2007/243 IDMD.
No./11.01.01(B)/2006-07 are grouped under other liabilities.
Continued
(iv) Investments
(a) The securities acquired with the intention of holding till maturity or for a
longer period are classified as non-current investments.
(b) Investments are carried at cost arrived at on weighted average basis and
includes directly attributable acquisition charges. Commissions earned in
respect of securities acquired upon devolvement are reduced from the
cost of acquisition. Appropriate provision is made for other than temporary
diminution in the value of non-current investments.
(c) Held to Maturity (HTM) Securities
Investments classified under HTM are carried at acquisition cost, unless it is
more than the face value, in which case the premium is amortized over the
period remaining over maturity and charged to Profit and Loss account on a
constant yield basis. The book value of the security is reduced to the extent
of the amount amortized during the relevant accounting period.
The profit on sale of securities from the HTM category is first taken to Profit
and Loss account and thereafter appropriated, net of taxes to the Capital
Reserve Account. Loss on sale is recognized in the Profit and Loss account.
(v) Repurchase and Resale Transactions (Repo)
 Repo transactions are treated as collateralized lending and borrowing
transactions, with an agreement to repurchase, on the agreed terms, as per RBI
guidelines and accordingly disclosed in the financial statements. The difference
between consideration amounts of the first leg and second leg of the repo
are reckoned as Repo Interest. As regards repo / reverse repo transactions
outstanding on the balance sheet date, only the accrued income / expenditure
till the balance sheet date is taken to the Profit and Loss account. Any repo
income / expenditure for the remaining period are reckoned for the next
accounting period. The securities lent under repo transactions are continued to
be marked to market as per the investment classification of the security.
(vi) Property, Plant & Equipments, Depreciation and Amortisation
(a) Fixed assets are stated at historical cost less accumulated depreciation and
impairment loss, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for intended use.
(b) Tangible Assets
Depreciation on tangible assets is provided using the straight line method
as per the useful life of the assets specified in Schedule II of the Companies
Act, 2013.
Asset Useful Life
Electrical Installations 10 Years
Office Equipment 5 Years
Computers – Servers & Networks 6 Years
Computers – End user devices 3 Years
Furniture & Fixtures 10 Years
Vehicles 8 Years
(c) Intangible Assets
Intangible assets are amortized on a straight line basis over the estimated
useful economic life.
Asset Depreciation Rate
(SLM)
Software 25.00%
(vii) Impairment
 The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external factors.
An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of
the asset’s net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using the pre-
tax discount rate that reflects the current market assessment of the time value
of money and risks specific to that asset.
(viii) Tax Expenses
Tax expense comprises of current and deferred taxes. Current income tax is
measured at the amount expected to be paid to the tax authorities in accordance
with the Income Tax Act, 1961 enacted in India.
Deferred income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal of
timing differences of earlier years. Deferred tax is measured based on the tax
rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred tax assets are recognised only to the extent there is reasonable
certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realised. Unrecognised deferred tax assets of
earlier years are re-assessed and recognised to the extent that it has become
reasonably certain that future taxable income will be available against which
such deferred tax assets can be realised.
19
notes
forming part of the accounts Continued
The carrying amount of deferred tax assets are reviewed at each reporting date. For the purpose of calculating diluted earnings per share, the net profit or loss
The Company writes-down the carrying amount of a deferred tax asset to the for the period attributable to equity shareholders and the weighted average
extent that it is no longer reasonably certain or virtually certain, as the case may number of shares outstanding during the period are adjusted for the effects of
be, that sufficient future taxable income will be available against which deferred all dilutive potential equity shares.
tax asset can be realised. Any such write-down is reversed to the extent that
it becomes reasonably certain or virtually certain, as the case may be, that (xvii) Provisions
sufficient future taxable income will be available. A provision is recognised when the Company has a present obligation as a result
of past event; it is probable that an outflow of resources embodying economic
(ix) Lease benefits will be required to settle the obligation, and a reliable estimate can
Leases where the lessor effectively retains substantially all the risks and benefits be made of the amount of the obligation. Provisions are not discounted to its
of ownership of the leased term are classified as operating leases. Operating present value and are determined based on best estimate required to settle the
lease payments are recognized as an expense in the Profit and Loss account on obligation at the reporting date. These are reviewed at each reporting date and
a straight-line basis over the lease term. adjusted to reflect the current best estimates.
(x) Cash and cash equivalents (xviii) Contingent Liabilities
Cash and cash equivalents for the purposes of cash flow statement comprise A contingent liability is a possible obligation that arises from past events whose
cash at bank and in hand and short term investments with an original maturity existence will be confirmed by the occurrence or non-occurrence of one or
of three months or less. more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of
(xi) Provision for Doubtful Loans and Advances resources will be required to settle the obligation. A contingent liability also
The policy of provisioning against non performing loans and advances has arises in extremely rare cases where there is a liability that cannot be recognized
been decided by the management considering norms prescribed by the RBI because it cannot be measured reliably. The Company does not recognize a
under Non Banking Financial Companies Prudential Norms (Reserve Bank) contingent liability but discloses its existence in the financial statements.
Directions, 2007 along with other directions issued from time to time. As per
the policy adopted, the provision against sub standard assets are fixed on a
conservative basis, taking into account management’s perception of the higher
risk associated with the business of the Company. (` in million)
As at As at
(xii) Foreign Currency Transactions March 31, 2018 March 31, 2017
(a)  Initial recognition: Foreign currency transactions are recorded in the 2. SHARE CAPITAL :
reporting currency, by applying to the foreign currency amount the
Authorized:
exchange rate between the reporting currency and the foreign currency at
the date of the transaction. 50,000 (Previous year 50,000) Equity Shares of 5,000.0 5,000.00
`1,00,000/- each
(b) Conversion: Foreign currency monetary items are retranslated using the
exchange rate prevailing at the reporting date. Non-monetary items which Issued, Subscribed & Fully Paid Up
are measured in terms of historical cost denominated in a foreign currency 15,634 (Previous year 15,634) Equity Shares of
are reported using the exchange rate at the date of the transaction. ` 1,00,000/- each 1,563.4 1,563.40
(c) 
Exchange Differences: Exchange differences arising on settlement or
restatement of monetary items are recognized as exchange gain/ loss in the Notes:
profit and loss account.
(1) The Company has only one class of equity shares having a par value of ` 100,000/-
(xiii) Retirement and Other Employee Benefits per share. Each shareholder of equity share is entitled to one vote per share. The
(a) Retirement benefit in the form of Provident Fund is a defined contribution Company declares and pays dividends in Indian rupees. The dividend proposed by
scheme and the contributions are charged to the Profit and Loss Account the Board of Directors is subject to the approval of the shareholders in the ensuing
of the year when the contributions to the respective funds are due. Annual General Meeting. In the event of liquidation of the Company, the holder of
equity shares will be entitled to receive remaining assets of the Company, after
There are no other obligations other than the contribution payable to the
distribution of all preferential amounts. The distribution will be in proportion to the
respective trusts. the number of equity shares held by the shareholder.
(b) 
The Company’s employees are covered under the Employees’ Gratuity
(2) All the equity shares (Previous year : all) of ` 100,000/- each fully paid are held by
Scheme & contribution is made to ICICI Prudential Life Insurance Company
ICICI Bank Limited (the Holding company) and its nominees.
Limited. Gratuity liability is defined benefit obligation and is provided for on
the basis of an actuarial valuation on projected unit credit method made at
Reconciliation of the shares outstanding at the beginning and at the end of the year
the end of each reporting period.
(c) Compensated absences are provided for on the basis of actuarial valuation. As at March 31, 2018 As at March 31, 2017
The actuarial valuation is done as per projected unit credit method at the
end of each reporting period. Accumulated leave which is expected to be No of ` in No of ` in
utilized within the next twelve months is treated as short term employee Shares million Shares million
benefit. These costs are measured at the additional amount expected to be At the beginning of the year 15,634 1,563.4 15,634 1,563.4
paid towards the leave used from such unused entitlements.
Issued during the year - - - -
(d) Actuarial gains/losses are immediately taken to profit and loss account and
are not deferred. Outstanding at the end of the year 15,634 1,563.4 15,634 1,563.4

(xiv) Derivatives Transactions Details of bonus shares issued, shares issued for consideration other than cash
and shares bought back during the period of five years immediately preceding the
(a) All open positions are marked to market except hedge swaps which are
reporting date :
accounted for on accrual basis.
(a) During the period of last five years immediately preceding the reporting date
(b) 
Receivables/payables on open position are disclosed as current assets/ the Company has not issued any bonus shares
current liabilities, as the case may be. (b) During the period of last five years immediately preceding the reporting date,
the Company has not bought back any equity shares.
(xv) Segment Reporting
The Company’s primary business segments are reflected based on the principal As at As at
business carried out, i.e. trading in securities. March 31, 2018 March 31, 2017
The risk and returns of the business of the Company is not associated with The board proposed dividend on equity shares
geographical segmentation, hence there is no secondary segment reporting after the balance sheet date
based on geographical segment. Proposed dividend on equity shares for the year
ended on March 31, 2018 :
(xvi) Earnings per Share
Nil per share (31 March 2017 : ` 6,000/- per - 93.8
Basic and Diluted earnings per share are calculated by dividing the net profit or share)
loss for the year attributable to equity shareholders (after deducting attributable Dividend distribution tax on proposed dividend - 19.1
taxes) by the weighted average number of equity shares outstanding during the
year. - 112.9

20
notes
forming part of the accounts Continued

(` in million) (` in million)
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

3. RESERVES AND SURPLUS 5. DEFERRED TAX (LIABILITIES) / ASSETS (NET)

General Reserve The break-up of deferred tax (liabilities) / assets into major components as on
Balance as per last financial statements 749.1 749.1 the balance sheet date is as follows:-
Transfer during the year - - Timing Difference on Depreciation on 2.6 -
Closing balance 749.1 749.1 Fixed Assets
Special Reserve Expenditure disallowed under Income Tax
(maintained under Section 45 IC of the Act, 1961
Reserve Bank of India (RBI) Act, 1934) Provision for Doubtful Debtors 0.6 0.3
Balance as per last financial statements 5,112.5 4,289.3
Provision for Employee Retirement 28.0 25.0
Transfer during the year 223.3 823.2 Benefits
Closing balance 5,335.8 5,112.5
Unrealised MTM Gains on derivatives (346.5) (354.3)
Capital Reserve*
(315.3) (329.0)
Balance as per last financial statements 624.2 454.1
Transfer during the year 55.8 170.1
Closing balance 680.00 624.2 6. LONG TERM PROVISIONS:
*Represents profit on sale of Held to Provision for Employee Benefits 80.0 71.6
Maturity (HTM) investments (net of tax) TOTAL 80.0 71.6
Capital Redemption Reserve
Balance as per last financial statements 466.6 466.6 7. SHORT TERM BORROWINGS
Transfer during the year - - Secured
Closing balance 466.6 466.6
Borrowings under Liquidity Adjustment 25,817.0 18,069.0
Facility & Standing Liquidity Facility
Profit and Loss Account (Secured by pledge of Government
Balance as per last financial statements 919.4 1,146.2 securities of Face
Profit for the year 1,116.3 4,115.9
Value ` 27,354.1 million) (Previous year
Less: Appropriations ` 19,120.0 million)
Transfer to Special Reserve 223.3 823.2
Collateralised Borrowings 5,400.4 764.7
Transfer to Capital Reserve* 55.8 170.1
(Secured by pledge of Government
Interim dividend 578.5 2,665.6
securities of Face
Final Dividend of Financial Year 2017 93.8 117.3
Value ` 5,487.2 million) (Previous year
Corporate Dividend Tax 136.8 566.5
` 747.6 million)
Closing balance 947.5 919.4
TOTAL 8,179.0 7,871.80 Repo Borrowings 84,694.0 39,834.2
(Secured by pledge of Government
*Represents profit on sale of Held to Maturity (HTM) investments (net of tax) securities of Face
As at As at Value ` 82,543.1 million) (Previous year
March 31, 2018 March 31, 2017 ` 38,001.9 million)
Non-Current Current Non-Current Current TOTAL (A) 115,911.4 58,667.9
Maturites Maturities Maturites Maturities Unsecured
4. LONG TERM BORROWINGS:
Inter-Corporate Borrowings 3,270.8 6,040.0
Unsecured
Money at Call, Notice and Term 28,506.0 28,880.0
Subordinated Bonds - Tier II
Capital Commercial Paper Borrowings 2,963.7 997.8
50 (Previous year 50) 9.75% 500.0 - 500.0 - TOTAL (B) 34,740.5 35,917.8
Unsecured Bonds of ` 10 TOTAL (A) + (B) 150,651.9 94,585.7
million each maturing on 21st
December 2021
150 (Previous year 150) 9.65% 150.0 - 150.0 - 8. TRADE PAYABLES
Unsecured Bonds of ` 1 million Trades executed but not settled 1,015.2 257.0
each maturing on 17th May 2022 1,015.2 257.0
850 (Previous year 850) 9.20% 850.0 - 850.0 -
Unsecured Bonds of ` 1 million
each maturing on 26th April 2023 9. OTHER CURRENT LIABILITIES
350 (Previous year 350) 9.35% 350.0 350.0 Interest accrued but not due on loans 633.5 557.9
Unsecured Bonds of ` 1 million Sundry Creditors for Expenses 66.4 59.3
each maturing on 30th April 2023
Taxes Payable 108.5 282.8
500 (Previous year 500) 9.35% 500.0 - 500.0 -
Unsecured Bonds of ` 1 million Interest Rate Swaps Payable 85.8 - 164.0
each maturing on 14th June 2023 Other Liabilities 4,969.3 18,529.5
500 (Previous year 500) 9.80% 500.0 - 500.0 - (Includes securities short sold having Face
Unsecured Bonds of ` 1 million Value ` 4,950.0 million (Previous year
each maturing on 17th May 2024 ` 17,200.0 million )
950 (Previous year 950) 9.10% 950.0 - 950.0 - 5,863.5 19,593.5
Unsecured Bonds of ` 1 million
each maturing on 29th April 2025
450 (Previous year 450) 8.70% 450.0 - 450.0 - 10. SHORT TERM PROVISIONS
Unsecured Bonds of ` 1 million Provision for Employee Benefits 0.9 0.8
each maturing on 28th April Contingent Provision against Standard Assets 0.5 0.8
2026
500 (Previous year Nil) 8.25% 500.0 - - -
1.4 1.6
Unsecured Bonds of ` 1 million
each maturing on 26th April
2027
Total Subordinated Bonds 4,750.0 - 4,250.0 -
issued as Tier II Capital

21
notes
forming part of the accounts Continued

11. PROPERTY, PLANT AND Equipment: (` in million)

Gross Block (at Cost) Accumulated Depreciation/Amortisation Net Block
April 1, Additions Sale/Adj March 31, April 1 Additions Sale/Adj March 31, March 31, March 31,
2017 2018 2017 2018 2018 2017
(i) TANGIBLE
Plant & Machinery / Electrical 4.1 - - 4.1 4.0 - - 4.0 0.1 0.1
Installations
Office Equipment 12.9 0.8 0.8 12.9 10.4 1.1 0.5 11.0 1.9 2.5
Computers 31.9 0.3 0.6 31.6 26.7 2.4 0.7 28.4 3.2 5.2
Furniture & Fixtures 9.9 - 0.3 9.6 7.9 0.3 0.2 8.0 1.6 2.0
Vehicles 2.1 4.1 - 6.2 0.4 0.5 - 0.9 5.3 1.7
(ii) INTANGIBLE
Software 59.6 0.9 16.8 43.7 45.3 9.0 16.8 37.5 6.2 14.3
Total 120.5 6.1 18.5 108.1 94.7 13.3 18.2 89.8 18.3 25.8
(iii) Capital Work-in-Progress - 4.1 4.1 - - - - - - -
Total 120.5 10.2 22.6 108.1 94.7 13.3 18.2 89.8 18.3 25.8
Previous Year 127.9 1.7 9.1 120.5 84.5 14.9 4.7 94.7 25.8

(` in million) (` in million)
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
15. TRADE RECEIVABLES
12. NON-CURRENT INVESTMENTS
Investments in Government Securities 3,098.6 1,573.5 SECURED
(Quoted) (a) Receivables outstanding for a period - -
(Market Value ` 2,914.1 million (Previous Year exceeding six months:
` 1,607.3 million)) (b) Others
3,098.6 1,573.5 Considered good
 Trades executed but not settled - 10,063.0 22,427.0
13. LONG TERM LOANS AND ADVANCES Considered Good
Advance Tax 185.9 66.1 Considered Doubtful - -
(Net of Provision for Tax ` 13,194.1 million Total (A) 10,063.0 22,427.0
Previous Year ` 12,565.0 million) UNSECURED
Deposits with Stock Exchanges 127.7 127.7 (a) Receivables outstanding for a period - -
313.6 193.8 exceeding six months:
(b) Others
14.0 INVENTORIES - SECURITIES HELD AS STOCK IN TRADE Considered good 120.6 44.7
(a) QUANTITATIVE DETAILS OF OPENING AND CLOSING STOCK Considered doubtful 1.1 -
Less: Provision for Doubtful Debts (1.1) -
Category Opening Stock Closing Stock Total (B) 120.6 44.7
Face Value Value Face Value Value Total 10,183.6 22,471.7
Government Securities 62,481.6 64,315.6 123,841.3 125,104.6
(122,131.6) (120,879.7) (62,481.6) (64,315.6) 16. CASH AND CASH EQUIVALENTS
Treasury Bills 15.6 14.9 100.0 99.2 Cash & Cheques on hand 0.1 0.1
(92.8) (88.1) (15.6) (14.9)
Balance In Current Accounts with 147.0 24.5
Shares 4.4 41.9 2.1 214.0
Scheduled Banks
(72.5) (154.9) (4.4) (41.9)
In Current Accounts with Reserve Bank 31.2 2.2
Debentures/Bonds & CPs 29,631.0 28,979.0 25,902.5 25,940.9
of India
/ CDs (15,803.1) (16,018.3) (29,631.0) (28,979.0)
178.3 26.8
Units - - - - Fixed Deposits with Scheduled Banks ( 694.6 1,664.4
- - - - Under Lien)
(Under lien with Axis Bank ` 189.7
Total 92,132.6 93,351.4 149,845.9 151,358.7
million, HDFC Bank ` 125.0 million, Kotak
(138,100.0) (137,141.0) (92,132.6) (93,351.4) Mahindra Bank ` 100.0 million and Yes
Bank ` 279.9 million (previous year with
Axis Bank ` 360.5 million, IDBI Bank ` 84.3
(b) QUANTITATIVE DETAILS OF PURCHASES AND SALES million and Yes Bank ` 1,219.6 million)
Category Purchases Sales TOTAL 872.9 1,691.2
Face Value Value Face Value Value
Government Securities* 8,014,302.7 7,954,252.6 7,940,692.9 7,880,032.5 17. SHORT TERM LOANS AND ADVANCES
(10,040,116.5) (10,423,496.9) (10,116,716.5) (10,501,159.6) CBLO Lendings - Secured - 20.0
Treasury Bills 278,531.8 270,781.1 278,447.4 270,706.5 Repo Lending 1,121.9 5,046.7
(257,482.8) (250,621.6) (257,559.9) (250,747.1) Advances and Deposits* 1,463.6 684.4
Shares 17.1 1,110.5 19.4 1,000.3 2,585.5 5,751.1
(19.6) (585.1) (65.5) (743.7) * For advances to and deposits with related parties, please refer Note 31 below
Debentures/Bonds & CPs 187,968.9 189,034.0 191,697.4 192,118.3
/ CDs (218,306.0) (216,654.1) (204,478.1) (203,923.0) 18. OTHER CURRENT ASSETS
Units 4,553.0 14,663.3 4,553.0 14,683.5 Interest Accrued but not due 2,630.5 1,434.3
Interest Rate Swaps Receivable 1,358.0 2,030.8
(3,841.6) (9,000.0) (3,841.6) (9,003.4)
3,988.5 3,465.1
Total 8,485,373.5 8,429,841.5 8,415,410.1 8,358,541.1
(10,519,766.5) (10,900,357.7) (10,582,661.6) (10,965,576.8)
Note: Figures in parenthesis pertain to previous year.
* Includes deals executed on short sell segment

22
notes
forming part of the accounts Continued

(` in million) (` in million)
For the year For the year For the year For the year
ended March ended March ended March ended March
31, 2018 31, 2017 31, 2018 31, 2017

19. INTEREST & DIVIDEND INCOME Details of CSR expenditure

Interest On Securities Held As Stock in 9,128.5 9,716.1 (a) Gross amount required to be spent by 84.6 55.7
Trade the Company during the year
Interest On Securities Held As Held to 309.3 113.4 (b) Amount spent during the Year in cash
Maturity i) Construction/acquisition of any asset - -
Income On Discounted Instruments 428.5 99.0 ii) On purposes other than (i) above 84.6 55.7
Interest On Repo and Call Lendings 398.6 464.0 Yet to be paid in cash - -
Interest On Other Loans and Advances 77.7 86.9 TOTAL 84.6 55.7
Dividend Income from Mutual Funds / 0.5 1.5
Companies 26. EARNINGS PER EQUITY SHARE (EPS)
TOTAL 10,343.1 10,480.9 Basic and Diluted EPS (`) 71,404.6 263,269.2
Nominal Value per share (`) 100,000.0 100,000.00
20. PROFIT ON SECURITIES (NET) EPS has been calculated based on the net profit after taxation of ` 1,116.3
Profit/(Loss) on Sale of Held to Maturity 85.4 260.2 million (previous year ` 4,115.95 million) and the weighted average number
Securities of equity shares outstanding during the year of 15,634 (previous year 15,634).
Profit/(Loss) on securities held as Stock (34.7) 3,851.2 Basic and Diluted EPS are same because there were no diluted potential equity
In Trade shares outstanding during the year.
Net Gain/(Loss) from currency and interest 60.8 1,080.7
rate derivatives 27. AUDITOR'S REMUNERATION* (included in Professional Fees)
TOTAL 111.5 5,192.1 (a) Audit Fees 2.8 2.8
(b) Tax Audit Fees - 0.2
21. INCOME FROM SERVICES (c) Certification Fees 1.3 1.6
Financial Advisory Services 87.0 55.0 (d) Out of Pocket Expenses 0.3 0.1
Syndication Fees 481.9 474.9 *Excluding Goods and Service Tax 4.4 4.7
Underwriting Commission 96.5 47.8
Brokerage and Commission 8.3 11.8 28. EXPENDITURE IN FOREIGN CURRENCY (on accrual basis)
TOTAL 673.7 589.5 (a) Others 5.1 4.9

22. OTHER INCOME 29. CONTINGENT LIABILITIES & COMMITMENTS

Miscellaneous Income 0.4 1.5 As at As at
TOTAL 0.4 1.5 March 31, 2018 March 31, 2017
I. Contingent Liabilities
23. FINANCE COST (a)  Service tax matters disputed by the - 0.6
Interest on Fixed Loans and Debentures 772.2 628.3 Company
Interest on Other Borrowings 7,471.8 8,030.1 (b) Bank Guarantees 110.0 110.0
8,244.0 8,658.4 II. Commitments
(a) Uncalled liability for partly paid - 900.0
24. EMPLOYEE BENEFIT EXPENSES securities held as stock in trade
Salaries, Wages and Incentives 564.1 641.7 (a) Estimated amount of contracts to be 1.4 -
Contribution to Provident and Other Funds 24.7 38.9 executed on capital account
Staff Welfare Expenses 11.7 20.5 111.4 1,010.6
TOTAL 600.5 701.1
30. OPERATING LEASE
OPERATING, ESTABLISHMENT AND OTHER EXPENSES
25.  Office premises are obtained on operating lease. The lease is renewable on
Procurement Expenses 26.2 44.3 yearly basis and the rent is decided at the time of the renewal. There are no
Rating Agency Fees 3.9 4.9 restrictions imposed by lease arrangements. There are no subleases. As at 31st
Brokerage, Stamp Duty & Securities 23.3 22.9 March 2018, there are no non-cancellable obligations in respect of the operating
Transaction Tax leases of the Company. Therre are no minimum lease payments or contingent
Bank Charges 9.9 9.1 rents.
Transaction, Custodial and Depository 214.8 236.3 Lease payments for the year 35.0 34.6
Charges
Doubtful Debts Written Off / Provided for 1.7 0.7 31. RELATED PARTY DISCLOSURES
the period Names of related parties where control exists irrespective of whether
Less: Opening Provision as at April 1, 0.8 0.2 transactions have occurred
2017 Holding Company ICICI Bank Limited
0.9 0.5
Names of other related parties with whom transactions have taken place
Rent and Amenities 35.1 34.7
during the year
Insurance 0.4 0.3
Fellow Subsidiaries ICICI Securities Limited
Business Promotion, Traveling and 15.3 15.2
Conveyance Expenses ICICI Securities Inc.
Repairs, Maintenance and Upkeep - 45.9 37.7 ICICI Lombard General Insurance Company Limited
Others ICICI Prudential Life Insurance Company Limited
Rates and Taxes 0.0 0.1 ICICI Home Finance Limited
Electricity Expenses 4.8 4.8 ICICI Venture Fund Management Company Limited
Loss on Sale of Fixed Assets 0.3 0.2 Associate ICICI Foundation for Inclusive Growth
Communication Expenses 4.5 6.0 Key Management Mr. Shailendra Jhingan ,Managing Director & CEO
Printing and Stationery 2.8 3.0 Personnel (w.e.f. November 03,2016)
Subscription and Periodicals 41.0 40.7 Mr. B. Prasanna, Managing Director & CEO
Professional Fees (Refer Note 27) 17.5 19.4 (till October 31,2016)
Advertisement Expenses 0.1 0.1 Mr. G. Sundaram, Executive Director
CSR Expenditure (Refer note below) 84.6 55.7 (till April 30, 2016)
Miscellaneous Expenses 8.1 13.7
TOTAL 539.40 549.6

23
notes
forming part of the accounts Continued

(` in million) (` in million)
For the year For the year For the year For the year
ended March ended March ended March ended March
31, 2018 31, 2017 31, 2018 31, 2017

Name of the Related Party / Type of ICICI Lombard General Insurance

Transaction Company Limited - Fellow Subsidiary
ICICI Bank Limited -The Holding Company Income from Operations
Income from Operations Income from Services - 14.6
Income from Services 56.2 76.2 Interest Income - 2.6
Interest Income 0.2 2.6 Administrative Expenditure
Profit / (Loss) on Interest Rate Swaps 566.2 258.1 Payment to and provisions for employees 4.1 4.2
Other income Nil 0.6 Payment of Establishment & other 0.1 0.2
Operating expenditure expenses
Payment of financial charges & operating 123.6 100.1 Current Assets
expenses Short Term Loans and Advances 5.0 4.9
Administrative Expenditure Other transactions
Recoveries / (Payment) to and provisions (0.7) (0.2) Purchase of Investments (including 549.4 650.8
for employees (Net) accrued interest)
Payment of Establishment & other 50.6 49.1 Sale of Investments (including accrued 1,321.4 1,622.9
expenses interest)
Current Assets
Bank Balance 144.7 22.2 ICICI Prudential Life Insurance Company
Fixed Deposits Nil Nil Limited - Fellow Subsidiary
Operating expenditure
Trade Receivables 47.2 38.8
Payment of financial charges & operating 57.1 57.1
Other Current Assets Nil Nil
expenses
Stock-in-trade Nil Nil
Administrative Expenditure
Short Term Loans and Advances 55.7 20.6
Payment to and provisions for employees 0.4 0.2
MTM on Interest Rate Swaps Receivable 226.3 311.6
Non-Current Liabilities
/ (Payable)
Long Term Borrowings 600.0 600.0
Current Liabilities
Current Assets
Short Term Borrowings 26,044.5 Nil Short Term Loans and Advances 0.3 0.2
Other Current Liabilities 63.6 15.9 Current Liabilities
Shareholders' Funds Short Term Borrowings - -
Share Capital 1,563.4 1,563.4 Other Current Liabilities 30.9 30.9
Derivative Other transactions
Notional Principal amount of Interest Rate 707,695.1 242,166.2 Purchase of Investments (including 5,859.9 9,155.5
Swaps outstanding* accrued interest)
Other transactions Sale of Investments (including accrued 15,838.6 13,353.7
Dividend paid 672.3 2,782.9 interest)
Purchase of Investments (including 12,379.0 3,262.4
accrued interest) ICICI Home Finance Limited - Fellow
Sale of Fixed Assets - 4.1 Subsidiary
Sale of Investments (including accrued 42,642.3 2,124.0 Income from Operations
interest) Income from Services 0.2 0.3
Bank Guarantees 110.0 110.0 Interest Income 1.9 -
Other transactions
ICICI Securities Limited - Fellow Purchase of Investments (including 250.0 50.0
Subsidiary accrued interest)
Income from Operations Sale of Investments (including accrued Nil Nil
Income from Services Nil Nil interest)
Other income 0.4 0.6
Operating expenditure ICICI Venture Fund Management
Payment of financial charges & operating 1.1 2.1 Company Limited – Fellow Subsidiary
expenses Administrative Expenditure
Administrative Expenditure Payment of Establishment & other 0.7 0.6
Payment to and provisions for employees Nil Nil expenses
/ (Recoveries) (Net) Current Assets
Establishment & other expenses - 0.6 1.1 Short Term Loans and Advances 0.6 0.6
Recoveries /(Payment)(Net)
Trade Receivables Nil 0.1 ICICI Foundation for Inclusive Growth -
Associate
Current Assets
Administrative Expenditure
Short Term Loans and Advances 0.2 1.7
Donations 84.6 54.2
Trade Payables Nil Nil
Other Current Liabilities 0.2 0.0
Transactions of Income and Expenses stated above exclude service tax
Other transactions
Purchase of Investments (including NIL NIL * Includes notional Principal amount of ` 698,066.6 million guaranteed by CCIL
accrued interest) 
Key Management Personnel Disclosures:The Compensation (including
Sale of Investments (including accrued NIL 66.4 contribution to Provident Fund) for the period ended March 31, 2018 to
interest) Mr. Shailendra Jhingan Managing Director & CEO was ` 33.4 million ( for the
year ended March 31, 2017 - ` 10.4 million), to Mr. B. Prasanna was Nil (for the
ICICI Securities Inc. - Fellow Subsidiary year ended March 31, 2017 - ` 39.4 million) and to Mr. G. Sundaram was Nil
Operating expenditure (for the year ended March 31, 2017 - ` 19.6 million).The remuneration does
Procurement Expenses 2.9 2.9 not include the provisions made for gratuity and leave benefits, as they are
Other Current Liabilities 2.9 2.9 determined on an actuarial basis for the Company as a whole.
*The amounts stated above include bonus payments made on cash basis

24
notes
forming part of the accounts Continued
32. DERIVATIVE For the year For the year
(Pursuant to RBI Circular NO RBI/DNBR/2016-17/45 Master Direction DNBR. PD. ended March ended March
008/03.10.119/2016-17 dated September 01, 2016) 31, 2018 31, 2017
Assets Acquired on Acquisition / 0.0 0.0
(` in million) (Distributed on Divestiture)
As at As at
Benefits paid (1.9) (34.8)
March 31, 2018 March 31, 2017
Closing plans assets at fair value 111.6 102.0
Notional Principal amount of IRS Expected employers contribution in next 50.0 50.0
Contracts year
a. Hedging Contracts - - The major categories of plan assets as a
b. Trading Contracts 7,257,812.5 3,096,893.9 percentage of the fair value of total plan
(i) Fair Value of Trading IRS 1,272.2 1,866.8 assets are as follows:
(ii) Associated Credit Risk on Trading 1,358.0 2,030.8 Investments with insurer 100.0% 100.0%
IRS* Investment details of plan assets
(iii) Likely impact of one percentage 698.0 827.8 Assumptions
change in interest rate (100*PV01) Discount rate 7.85% 7.55%
(iv) Collateral required by the NBFC Nil Nil Salary escalation rate 10.00% 10.00%
upon entering into swaps
Estimated rate of return on plan assets 8.00% 8.00%
(v) Credit Risk Concentration@ 844.3 1,254.3
Interest Rate Futures Contracts Experience Adjustment
Open Quantity in units – Long - -
Short (3,522.0) (39,432.0) Particulars 31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Net Long / (Short) (3,522.0) (39,432.0) Defined Benefit
Equity Derivatives – Trading Contracts Obligation 171.5 155.4 153.5 133.0 100.8
a. Futures Contracts
Plan Assets 111.6 102.0 87.9 91.3 21.2
Open Quantity in units – Long 147,200.0 36,500.0
Short (1,346,450.0) (9,950.0) Surplus / (Deficit) (59.9) (53.5) (65.6) (41.7) (79.7)
Net Long / (Short) (1,199,250.0) 26,550.0 Exp. adj. on plan
b. Option Contracts liabilities (0.5) 2.3 2.4 0.0 2.6
Open Quantity in units – Long 39,900.0 152,025.0 Exp. adj. on plan
Short (79,800.0) (428,350.0) assets 0.3 5.5 (11.1) 6.3 0.9
Net Long / (Short) (39,900.0) (276,325.0)
MTM Gain / (loss) on Trading Derivatives 0.2 0.5
34. COMPOSITION OF INVESTMENT IN NON-GOVERNMENT SECURITIES AT
*Associated Credit Risk is defined as the loss that the Company would incur in case all MARCH 31, 2018
the counterparties to these swaps fail to fulfill their contractual obligations. (Ref: RBI circular no. IDMD.PDRS.No.03/03.64.00/2003-04)
@ Credit risk concentration is measured as the highest net receivable under swap
Issuer# Amount* Extent of Extent of
contracts from top three counterparties. private unlisted
placement** securities’***
33. EMPLOYEE BENEFITS (AS 15 REVISED)
The following table summarises the components of net benefit expense recognised in the Public Sector Units 5,426.5 5,426.5 -
profit and loss account and the amounts recognised in the balance sheet for gratuity (6,267.8) (6,078.0) (200.0)
Financial Institutions Nil Nil Nil
For the year For the year
ended March ended March (Nil) (Nil) (Nil)
31, 2018 31, 2017 Banks 229.7 229.7 -
Cost for the year
(2,257.5) (2,257.5) (Nil)
Current Service cost 12.6 11.2
Interest cost 12.6 13.2 Other Primary Dealers Nil Nil Nil
Expected return on plan assets (10.1) (9.0) (Nil) (Nil) (Nil)
Actuarial (gain) / loss (7.5) 6.9 Private corporates Nil Nil Nil
Past Service Cost - -
(Nil) (Nil) (Nil)
Losses / (Gains) on “Acquisition / - -
Divestiture” Subsidiaries/ Joint ventures Nil Nil Nil
Net cost 7.6 22.3 (Nil) (Nil) (Nil)
Others 19,345.8 19,345.8 38.2
Present value of the defined benefit 171.5 155.4
obligations at the end of the year (20,453.7) (19,094.0) (783.6)
Less: Fair value of plan assets at the end (111.6) (102.0) Provision held towards Nil Nil Nil
of the year depreciation (Nil) (Nil) (Nil)
Less: Unrecognised past Service Cost 0.0 0.0
Total 25,002.0 25,002.0 38.2
Liability / (Asset) 59.9 53.4
(28,979.0) (27,429.5) (983.6)
Change in the present value of the Note: Figures in parenthesis pertain to previous year.
defined benefit obligation liability All the investments in the above non government securities are rated and are above
Opening obligations 155.5 153.5 investment grade securities
* Represents amounts net of provision for depreciation if any
Service cost 12.6 11.2
** Represents original issue
Interest cost 12.6 13.2 ***Does not include CPs & CDs aggregating to ` 939.8 million (Previous Year- ` Nil)
Actuarial (gain) / loss (7.3) 12.4 since the same are not covered by the above circular
Liability extinguished on settlement 0.0 0.0 # Does not include equity and preference shares
Benefits paid (1.9) (34.8)
Closing obligations 171.5 155.5

Change in fair value of plan assets

Opening plans assets, at fair value 102.0 87.9
Expected return on plan assets 10.1 9.0
Actuarial gain / (loss) 0.3 5.5
Contributions 1.1 34.4

25
notes
forming part of the accounts Continued
35. 
DISCLOSURE PURSUANT TO RBI CIRCULAR NO RBI/DNBR/2016-17/45 c. Exposure to Capital Market
Master Direction DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016  Direct investment in equity shares, 78.6 165.0
Items As at As at March convertible bonds, convertible debentures
March 31, 2018 31, 2017 and units of equity-oriented mutual funds
the corpus of which is not exclusively
a. Capital to Risk Assets Ratio (CRAR)* invested in corporate debt;
i) CRAR (%) 40.69 34.60  Advances against shares / bonds / Nil Nil
ii) CRAR – Tier I Capital (%) 27.79 23.93 debentures or other securities or on clean
iii) CRAR – Tier II Capital (%) 12.90 10.67 basis to individuals for investment in shares
iv)  Amount of subordinated debt raised 500.0 450.0 (including IPOs / ESOPs), convertible
as Tier-II capital bonds, convertible debentures, and units of
v)  Amount raised by issue of Perpetual Nil Nil equity-oriented mutual funds;
Debt Instruments  Advances for any other purposes where Nil Nil
*calculated as per RBI circular no.RBI/2006-2007/355 DNBS.PD/CC No.93/03.05.002/2006-07 shares or convertible bonds or convertible
b. Exposure to Real Estate Sector (` in million) debentures or units of equity oriented
mutual funds are taken as primary security;
Category As at As at March
 Advances for any other purposes to the Nil Nil
March 31, 2018 31, 2017
extent secured by the collateral security of
a) Direct exposure shares or convertible bonds or convertible
(i) Residential Mortgages debentures or units of equity oriented
 Lending fully secured by mortgages Nil Nil mutual funds i.e. where the primary
on residential property that is or will security other than shares / convertible
be occupied by the borrower or that bonds / convertible debentures / units of
is rented equity oriented mutual funds 'does not fully
(ii) Commercial Real Estate cover the advances;
 Lending secured by mortgages on Nil Nil  Secured and unsecured advances to Nil Nil
commercial real estates (office buildings, stockbrokers and guarantees issued on
retail space, multipurpose commercial behalf of stockbrokers and market makers;
premises, multi-family residential  Loans sanctioned to corporates against Nil Nil
buildings, multi-tenanted commercial the security of shares / bonds / debentures
premises, industrial or warehouse space, or other securities or on clean basis for
hotels, land acquisition, development meeting promoter's contribution to the
and construction, etc.). Exposure would equity of new companies in anticipation of
also include non-fund based (NFB) limits raising resources;
(iii) 
Investments in Mortgage Backed Nil Nil  Bridge loans to companies against Nil Nil
Securities (MBS) and other expected equity flows / issues;
securitized exposures  All exposures to Venture Capital Funds Nil Nil
b) Indirect Exposure (both registered and unregistered)
 Fund based – Face Value of Investments 6,226.1 10,309.9 Total Exposure to Capital Market 78.6 165.0
in NCDs/FRBs/CPs/Equities
 Non-fund based – Notional Principal Nil Nil
of IRS

d. Asset Liability Management

Maturity pattern of certain items of assets and liabilities as at March 31, 2018****

(` in million)
1 day to 30/31 Over one Over 2 Over 3 Over 6 Over 1 year Over 3 years Over 5 years Total
day (one month to 2 months upto months upto months to 3 years to 5 years
month) months to 1 year
3 months 6 months
Liabilities
Borrowings from Nil Nil Nil Nil Nil Nil Nil Nil Nil
banks Nil Nil Nil Nil Nil Nil Nil Nil Nil
Market 138,165.2 8,461.4 4,025.3 - - - 650.0 4,100.0 155,401.9
Borrowings* (87,366.7) (2,807.5) (4,411.5) - - - (500.0) (3,750.0) (98,835.7)
Assets
Advances** Nil Nil Nil Nil Nil Nil Nil Nil Nil
Nil Nil Nil Nil Nil Nil Nil Nil Nil
Investments*** 151,358.7 Nil Nil Nil Nil Nil - 3,098.6 154,457.3
(93,351.5) Nil Nil Nil Nil Nil Nil (1,573.5) (94,925.0)
*Borrowings in Call / Notice / Term have been treated as market borrowings
**Advances represent advances in the nature of loans
*** Investments in the nature of ‘Securities held as Stock in Trade’ are classified in the “one month bucket” and those in the nature of ‘Non Current Investments’ are classified as per their
residual maturity.
**** The Company does not have any foreign currency assets and liabilities in the above schedule

26
notes
forming part of the accounts Continued
36. 
DISCLOSURE PURSUANT TO RBI CIRCULAR NO.IDMC.PDRS. 39. DISCLOSURES PURSUANT TO RBI CIRCULAR NO. RBI/2015-16/12 DNBR (PD)
NO.2269/03.64.00/2002-03 -PUBLICATION OF FINANCIAL RESULTS DATED CC.NO.053/03.10.119/2015-16 DATED JULY 01, 2015
NOVEMBER 28, 2002
(a) Details of Investments
i) Net borrowings in call/notice: average ` 7,683.4 million; peak ` 33,530.0
million The securities held as stock-in-trade are valued at lower of cost or (` in million)
market value (LOCOM) As at As at
ii) Leverage ratio: average 13.65 times; peak 18.43 times March 31, 2018 March 31, 2017
1) Value of Investments
iii)  CRAR (Quarterly)*
i) Gross Value of Investments
30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 a) In India 3,098.6 1,573.5
b) Outside India Nil Nil
22.70% 28.39% 25.41% 23.91% ii) Provisions for Depreciation
a) In India Nil Nil
*Calculated as per master Direction-Standalone Primary details (Reserve Bank)
Directions 2016 dated August 25, 2016 issued by the Reserve Bank of India b) Outside India Nil Nil
ii) Net Value of Investments
37. REPO/REVERSE REPO TRANSACTIONS a) In India 3,098.6 1,573.5
b) Outside India Nil Nil
(Ref: Guidelines for Accounting of Repo / Reverse Repo Transactions dated
2) Movement of provisions held towards
March 23, 2010)
depreciation on investments.
i) Opening balance Nil Nil
(` in million)
ii) Add : Provisions made during the Nil Nil
For the year ended March 31, 2018 year
(iii) Less : Write-off / write-back of excess Nil Nil
Minimum Maximum Daily Average Outstanding provisions during iii) the year
outstanding outstanding outstanding as at March (iv) Closing balance Nil Nil
during the during the during the year 31, 2018
year
year
(b) Exchange Traded Interest Rate (IR) Derivatives
Securities sold under repos (Face Value) Particulars Amount
(i) Government 22,634.7 118,667.2 78,071.6 82,543.1 (i)  Notional principal amount of exchange traded IR
Securities derivatives undertaken during the year
(30,228.1) (119,779.2) (75,480.2) (38,001.9) a) IRF on Government Securities 126,427.0
(ii) Notional principal amount of exchange traded IR
(ii) Corporate debt Nil Nil Nil Nil
derivatives outstanding as at March 31, 2018
securities
Nil Nil Nil Nil a) IRF on Government Securities 704.4
(iii) 
Notional principal amount of exchange traded IR Nil
Securities purchased under reverse repos (Face Value) derivatives outstanding and not "highly effective"
(instrument-wise)*
(i) Government Nil 25,950.0 7,034.0 1,200.0
(iv) Mark-to-market value of exchange traded IR derivatives Nil
Securities
Nil (19,400.0) (7,236.4) (4,750.0) outstanding and not "highly effective" (instrument-wise)*
* The Company has not entered into IRF contracts for the purpose of hedging.
(ii) Corporate debt Nil Nil Nil Nil
securities (c) Disclosures on Risk Exposure in Derivatives
(Nil) (Nil) (Nil) (Nil) The Company has a Corporate Risk Management Group (CRMG) which has
formulated effective risk management policies, addressing market and credit
Note: Figures in parenthesis pertain to previous year.
risks associated with trading in derivatives which involves taking interest rate
38. DISCLOSURE PURSUANT TO 53(f) of SEBI (LISTING OBLIGATIONS and views as well as for hedging against adverse interest rate movements. CRMG
DISCLOSURE REQUIREMENTS) Regulations, 2015 has implemented various risk measures to mitigate the risk arising out of
derivative transactions such as VaR limit, PV01 limit and stop loss limit. The
(` in million) Company has a Risk Management Committee (RMC) comprising members of
the Board of Directors of the Company. The RMC is responsible for analysing
Particulars Outstanding as at Maximum amount and monitoring the risks associated with such business activities and ensuring
March 31, 2018 outstanding during adherence to the risk and investment limits set by the Board of Directors.
the year CRMG reports to the MD & CEO and the RMC. Further as required by RBI’s
Comprehensive Guideline on Derivatives dated April 20, 2007, the Company,
Loans and advances in the Nil Nil being a market maker in interest rate derivatives. has adopted a ‘Customer
nature of loans to ICICI Bank Appropriateness and Suitability Policy’.
Ltd, Holding Company -
Amount lent in Inter-bank Call Quantitative Disclosures Currency Interest Rate
/ Notice Derivatives Derivatives
Loans and advances in the Nil Nil (i) Derivatives (Notional Principal Amount)
nature of loans to Associates For hedging Nil Nil
(ii) Marked to Market Positions
Loans and advances in the Nil Nil (a) Asset (+) 0.3 1,360.7
nature of loans to firms/
(b) Liability (-) Nil (85.8)
companies in which directors
are interested (iii) Credit Exposure 2.9 6,236.8
(iv) Unhedged Exposures 2.9 6,236.8

27
notes
forming part of the accounts
(d) Disclosures relating to Securitisation, financial assets sold to Securitisation (j)
The Company has not drawn down any amount from reserves.
/ Reconstruction Company for Asset Reconstruction, assignment
transactions undertaken by NBFC and details of non-performing financial (k) The Company does not grant any loans or advances in the nature of loans.
assets purchased / sold
(l) The Company does not have any joint ventures and subsidiaries and has not
The Company does not undertake securitisation business and therefore sponsored any special purpose vehicles.
has not sold any assets to securitisation / reconstruction company for
asset reconstruction. The Company has not undertaken any assignment (m) Customer Complaints
transactions. The Company does not have any non-performing assets and
has also not sold /purchased any non-performing financial assets. a) No. of complaints pending at the beginning of the year Nil
b) No. of complaints received during the year Nil
(e) The Company does not finance products of parent company.
c) No. of complaints redressed during the year Nil
(f) The Company does not grant loans and advances in the nature of loans.
d) No. of complaints pending at the end of the year Nil
Hence it has not exceeded Single Borrower Limit (SGL) and Group Borrower
Limit (GBL).
The Company has initiated the process of identification of suppliers registered
40. 
(g) Registrations obtained from other financial sector regulators under the Micro Small and Medium Enterprise Development Act, 2006 (the
The Company is registered as a non deposit taking NBFC and holds license ‘MSMED’) by obtaining confirmation from all the suppliers. Based on the
for carrying out Primary Dealership business from Reserve Bank of India. It information currently available with the Company no amount is payable to the
is also registered as a Category I - Merchant Banker, Portfolio Manager and Micro, Small and Medium Enterprises as per the MSMED Act, 2006 as at March
proprietary trading and self-clearing member of the currency derivatives 31, 2018.
segments of BSE Limited and National Stock Exchange of India Limited with
the Securities and Exchange Board of India (SEBI). It is also registered with 41. SEGMENT REPORTING
SEBI as a proprietary trading member of the currency derivatives segment  The Company’s primary operations fall under single business segment of
of Metropolitan Stock Exchange of India Limited. Under the Merchant securities trading and its allied services. Further, all the transactions and the assets
Banking license, the Company is also permitted to act as underwriters of the Company are recorded/located in India. Since the Company’s business
while the portfolio manager license permits the Company to also carry out activity primarily falls within a single business and geographical segment, no
investment advisory services additional disclosure is to be provided under AS 17-Segment Reporting, other
than those already provided in the financial statements.
(h) Ratings assigned by credit rating agencies
 The Company’s Tier II borrowings have been rated as “CRISIL AAA” 42. PREVIOUS YEAR FIGURES (REGROUPED/REARRANGED)
(rated amount ` 4,900.0 million) and ‘CARE AAA’ (rated amount ` 3,250.0  Previous period/year figures have been regrouped/rearranged wherever
million) by credit rating agencies CRISIL and CARE respectively. Further, the considered necessary.
Company’s short term debt program has been rated as A1+ (rated amount
` 10,000.0 million) by CRISIL and ICRA. 43. 
DISCLOSURE IN RESPECT OF SPECIFIED BANK NOTES AS REQUIRED
BY NOTIFICATION DATED MARCH 30, 2017 ISSUED BY MINISTRY OF
(i) Break up of ‘Provisions and (` in million) CORPORATE AFFAIRS
Contingencies’ shown under the For the For the Specified Bank Other Total
head Expenditure in Profit and Loss year ended year ended Notes Denomination
Account March 31, 2018 March 31, 2017 Notes
Provisions for depreciation on Nil Nil Closing cash in hand as on November 0.0 0.1 0.1
Investment 08, 2016
(+) Permitted Receipts 0.3 0.3
Provision towards NPA 1.1 Nil
(-) Permitted Payments 0.3 0.3
Provision made towards Income Tax 615.2 2,224.1 (-) Amount Deposited in Banks 0.0 - 0.0
(including deferred tax) Closing cash in hand as on December - 0.1 0.1
30, 2016
Other Provision and Contingencies Nil Nil
(Provision for Standard Assets)

Provision for Standard Assets 0.9 0.5

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP N. S. KANNAN ASHVIN PAREKH SHAILENDRA JHINGAN

ICAI Firm Registration No.101248W/W-100022 Chairman Director Managing Director & CEO
Chartered Accountants DIN : 00066009 DIN : 06559989 DIN : 07636448

per MILIND RANADE ABHIJEET GUIN PRACHITI LALINGKAR

Partner Chief Financial Officer Company Secretary
Membership No: 100564

Mumbai, April 17, 2018

28
cash flow statement
for the year ended March 31, 2018

(` in million)
Year ended Year ended
March 31, 2018 March 31, 2017
A Cash Flow From Operating Activities
Profit Before Tax 1,731.5 6,340.0
- Loss on Sale of Plant, Property & Equipment 0.3 0.2
- Depreciation 13.3 14.9
- Income from investment (394.7) (373.6)
- Interest on Income Tax 0.1 17.4
- Bad and Doubtful Debts (Net) 0.9 0.5
Operating Profit before Changes in Operating Assets and Liabilities 1,351.4 5,999.4
Adjustments for net change in Operating Assets and Liabilities
- (Increase) / Decrease in Current Assets excluding Cash and Cash equivalents (46,916.5) 33,194.9
- (Increase) / Decrease in Fixed Deposits under Lien 969.8 (807.8)
- (Increase) / Decrease in loans and Advances relating to Operations 3,760.3 (5,920.6)
- Increase / (Decrease) in current Liabilities relating to Operations (12,697.3) 9,057.0
(54,883.7) 35,523.5
Cash used in Operations (53,532.3) 41,522.9
Payment of Taxes (Net) (748.9) (1,850.3)
Net Cash used in Operating Activities (54,281.2) 39,672.6
B Cash Flow From Investment Activities
- Purchase of Non-Curent Investments (30,827.2) (36,768.5)
- Sale of Non-Current Investments 29,380.4 37,268.3
- Income from investment (Excluding Amortisation) 316.5 117.5
- Purchase of Fixed Assets (Including capital work in progress and capital advances) (6.2) (1.7)
- Sale of Fixed Assets 0.0 4.2
Net cash from Investment Activities (1,136.5) 619.8

C Cash Flow From Financing Activities

- Increase / (Decrease) in Short Term Borrowings (Net) 56,066.1 (37,557.7)
- Issue of Debentures / Bonds 500.0 450.0
- Dividends Paid (672.3) (2,782.9)
- Dividend Tax Paid (324.6) (436.0)
Net Cash from Financing Activities 55,569.2 (40,326.6)
Net Change in Cash & Cash Equivalents 151.5 (34.2)
Cash and Cash Equivalents at the beginning of the year 26.8 61.0
Cash and Cash Equivalents at the end of the year* 178.3 26.8
Components of cash and cash equivalents
Cash & Cheques on hand 0.1 0.1
Balance In Current Accounts with Scheduled Banks 147.0 24.5
In Current Accounts with Reserve Bank of India 31.2 2.2
Total cash and cash equivalents (note 16) 178.3 26.8

The above Cash Flow Statement has been prepared under the “Indirect Method “ as set out in Accounting Standard (AS) - 3 'Cash Flow Statements' notified under section
133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules, 2016.
Cash and cash equivalents in the balance sheet comprises of Cash in hand and Cash at bank.
*Please refer Significant Accounting Policies

This is the Cash Flow Statement referred to in our report of even date.

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP N. S. KANNAN ASHVIN PAREKH SHAILENDRA JHINGAN

ICAI Firm Registration No.101248W/W-100022 Chairman Director Managing Director & CEO
Chartered Accountants DIN : 00066009 DIN : 06559989 DIN : 07636448

per MILIND RANADE ABHIJEET GUIN PRACHITI LALINGKAR

Partner Chief Financial Officer Company Secretary
Membership No: 100564

Mumbai, April 17, 2018

29
 directors’ report
schedules
Schedule to the Balance Sheet as at March 31, 2018
(as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007)

(` in million)
Particulars
Liabilities side :
(1) Loans and advances availed by the non-banking financial company inclusive of interest accrued thereon but not paid: Amount Amount
outstanding overdue
(a) Debentures : Secured
: Unsecured 5,027.4 Nil
(Other than falling within the meaning of public deposits)
(b) Deferred Credits - Nil
(c) Term Loans - Nil
(d) Inter-corporate loans and borrowing 3,297.2 Nil
(e) Commercial Paper 2,963.7 Nil
(f) Other Loans - CBLO - Secured 5,404.1 Nil
Borrowings under LAF & Refinance - Secured 25,834.3 Nil
Repo Borrowings - Secured 84,785.5 Nil
Call, Notice and Term Money - Unsecured 28,723.2 Nil

Assets side :
(2) Break-up of Loans and Advances including bills receivables [other than those included in (4) below] : Amount
outstanding
(a) Secured 1,121.9
(b) Unsecured 1,463.6

(3) Break-up of Leased Assets and stock on hire and other assets counting towards AFC activities Amount
outstanding
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease Nil
(b) Operating lease Nil
(ii) Stock on hire including hire charges under sundry debtors :
(a) Assets on hire Nil
(b) Repossessed Assets Nil
(iii) Other loans counting towards AFC activities
(a) Loans where assets have been repossessed Nil
(b) Loans other than (a) above Nil

(4) Break-up of Investments

Current Investments
1. Quoted
(i) Shares : (a) Equity 213.0
(b) Preference 1.0
(ii) Debentures and Bonds 25,940.9
(iii) Units of mutual funds -
(iv) Government Securities 125,203.8
(v) Others -
2. Unquoted
(i) Shares : (a) Equity -
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others -
Long Term Investments
1. Quoted
(i) Shares : (a) Equity -
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities 3,098.6
(v) Others -
2. Unquoted
(i) Shares : (a) Equity -
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others -

30
directors’
schedules report
Continued

(5) Borrower group-wise classification of assets financed as in (2) and (3) above : (` in million)
Category Amount net of provisions
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - 61.8 61.8
(c) Other related parties - - -
2. Other than related parties 1,121.9 1,401.8 2,523.7
Total 1,121.9 1,463.6 2,585.5

(6) Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted) :
Category Market Value Book Value (Net of
provisions)
1. Related Parties
(a) Subsidiaries - -
(b) Companies in the same group - -
(c) Other related parties - -
2. Other than related parties 154,278.6 154,457.3
Total 154,278.6 154,457.3

(7) Other information

Particulars Amount
(i) Gross Non-Performing Assets
(a) Related parties -
(b) Other than related parties 1.1
(ii) Net Non-Performing Assets
(a) Related parties -
(b) Other than related parties -
(iii) Assets acquired in satisfaction of debt -

For and on behalf of the Board of Directors

N. S. KANNAN ASHVIN PAREKH SHAILENDRA JHINGAN

Chairman Director Managing Director & CEO
DIN : 00066009 DIN : 06559989 DIN : 07636448

ABHIJEET GUIN PRACHITI LALINGKAR

Mumbai, April 17, 2018 Chief Financial Officer Company Secretary

31
 ICICI Securities LIMITED
23RD ANNUAL REPORT AND ANNUAL ACCOUNTS 2017-2018
Directors KEY MANAGERIAL PERSONNEL Registered Office
Chanda Kochhar, Chairperson (DIN: 00043617) Harvinder Jaspal, Chief Financial Officer ICICI Centre,
Vinod Kumar Dhall (DIN: 02591373) Raju Nanwani, Company Secretary H.T. Parekh Marg
Ashvin Parekh (DIN: 06559989) Churchgate,
Subrata Mukherji (DIN: 00057492) AUDITORS Mumbai 400 020
Vijayalakshmi Iyer (DIN: 05242960) M/s. B S R & Co. LLP
Vishakha Mulye (DIN: 00203578) Chartered Accountants Corporate Office
Shilpa Kumar, Managing Director & CEO (DIN: 02404667) (Registration number 101248W/W-100022) ICICI Securities Limited
Ajay Saraf, Executive Director (DIN: 00074885) Shree Sawan Knowledge Park
Plot No. D-507,
T.T.C. Industrial Area MIDC, Turbhe
Navi Mumbai 400 705

32
independent auditors’ report
to the Members of ICICI Securities Limited
Report on the audit of the standalone financial statements
We have audited the accompanying standalone financial statements of ICICI
Securities Limited (the “Company”), which comprise the Balance Sheet as at 31
March 2018, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and summary of the significant accounting policies and other
explanatory information.
Management’s responsibility for the standalone financial statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (the “Act”) with respect to the preparation of
these standalone financial statements that give a true and fair view of the state of
affairs, profit/loss and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards
prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the standalone financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone financial statements in accordance
with the Standards on Auditing specified under Section 143 (10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and the disclosures in the standalone financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the standalone financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control
relevant to the Company’s preparation of the standalone financial statements that
give a true and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting estimates made
by the Company’s Directors, as well as evaluating the overall presentation of the
standalone financial statements.
We are also responsible to conclude on the appropriateness of management’s
use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to
draw attention in the auditor’s report to the related disclosures in the standalone
financial statements or, if such disclosures are inadequate, to modify the opinion.
Our conclusions are based on the audit evidence obtained up to the date of the
auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information
required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2018, and its profits and its cash flows for the
year ended on that date.
Other matter
The comparative financial information of the Company for the year ended 31 March
2017 prepared in accordance with Accounting Standards as included in these
standalone financial statements have been audited by the predecessor auditor who
had audited the standalone financial statements for the year ended 31 March 2017.
The report of the predecessor auditor on the comparative financial information
dated 20 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
Report on other legal and regulatory requirements
As required by the Companies (Auditor’s Report) Order, 2016 (the “Order”) issued by
the Central Government in terms of section 143(11) of the Act, we give in “Annexure
A”, a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by
the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards prescribed under Section 133 of the Act;
e) On the basis of the written representations received from the directors
as on 31 March 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2018 from being appointed as a director
in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference
to the standalone financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B”; and
g) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations
given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements – Refer Note 33
to the standalone financial statements;
ii. the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company; and
iv. 
the disclosures in the standalone financial statements regarding
holdings as well as dealings in specified bank notes during the period
from 8 November 2016 to 30 December 2016 have not been made since
they do not pertain to the financial year ended 31 March 2018. However,
amounts as appearing in the audited standalone financial statements for
the year ended 31 March 2017 have been disclosed.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248 W/W-100022
Venkataramanan Vishwanath
Place of Signature: Mumbai Partner
Date: April 14, 2018 Membership No: 113156
33
annexure to the independent auditors’ report
Annexure A to the Independent Auditor’s Report of even date on
the standalone financial statements of ICICI Securities Limited
The Annexure referred to in the Independent Auditor’s Report to the members of Name of the Nature of dues Amount Period to Forum
ICICI Securities Limited (the “Company”) on the standalone financial statements for statute (` in which the where
the year ended 31 March 2018, we report that: million) amount dispute is
relates pending
i. (a) 
The Company has maintained proper records showing full particulars,
Service Tax Service tax 147.70 FY 2002- Commissioner
including quantitative details and situation of fixed assets.
(excluding interest 2003 to FY of Service Tax
(b) The Company has a regular programme of physical verification of its fixed and penalty) 2013-2014
assets by which all the fixed assets are verified at the end of the financial Service Tax Service tax (including 6.70 FY 2006- Central Excise
year. In our opinion, this periodicity of physical verification is reasonable interest and penalty) 2007 to FY & Service Tax
having regard to the size of the Company and the nature of its assets. No 2008-2009 Appellate
material discrepancies were noticed on such verification. Tribunal
Maharashtra Value added tax 1.70 FY 2008- Commissioner
(c) The Company does not have any immovable properties. Accordingly, para Value Added (including interest & 2009 of MVAT (Ap-
3(i)(c) of the Order is not applicable to the Company. Tax, 2002 penalty) peals)
Madhya Value added tax 0.4 FY 2008- High Court,
ii. The Company does not hold any securities in physical form. The securities
Pradesh (including interest & 2009 Indore
held as stock in trade are verified with the statement of holding received by
Value Added penalty)
management from the custodian at regular intervals. No material discrepancies
Tax, 2002*
were noticed on such verification.

iii. The Company has not granted any loans, secured or unsecured to companies,
firms, Limited Liability Partnerships or other parties covered in the register
maintained under section 189 of the Act. Accordingly, para 3(iii) of the Order is
not applicable.
iv. In our opinion and according to the information and explanations given to
us, the Company has not granted any loans, made investments or provided
guarantees and securities under Section 185 and 186 of the Act. Accordingly,
para 3(iv) of the Order is not applicable.
v. According to the information and explanation given to us, the Company has not
accepted any deposits from the public to which directives issued by Reserve
Bank of India and the provisions of Section 73 to Section 76 or any other relevant
provisions of the Act and the rules framed thereunder apply. Accordingly, para
3(v) of the Order is not applicable.
* Amount paid under protest
viii. In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of loans or borrowings to
financial institutions and banks. The Company did not have any borrowings
from Government or debenture holders during the year.
ix. In our opinion and according to the information and explanations given to us,
the monies raised by way of debt instruments in the nature of commercial paper
by the Company have been applied for the purpose for which they were raised.
During the year ended 31 March 2018, the Company completed the Initial
Public Offer (‘IPO’) through an Offer for Sale by ICICI Bank Limited, the Holding
Company. As the IPO was through an Offer for Sale by the Holding Company,
the Company did not receive any proceeds from the IPO. The Company did not
raise money by way of further public offer.

vi. The Central Government has not prescribed the maintenance of cost records x. During the course of our examination of the books and records of the Company,
under section 148(1) of the Act, for any services rendered by the Company. carried out in accordance with the generally accepted auditing practices in
Accordingly, paragraph 3(vi) of the Order is not applicable. India, and according to the information and explanations given to us, no
material fraud by the Company or on the Company by its officers or employees
vii. (a) According to the information and explanations given to us and on the basis has been noticed or reported during the year.
of our examination of the records of the Company, amounts deducted /
accrued in the books of account in respect of undisputed statutory dues xi. According to the information and explanations give to us and based on our
including provident fund, employees’ state insurance, income tax, service examination of the books and records of the Company, the Company has
tax, value added tax, goods and service tax, cess and other material statutory paid / provided for managerial remuneration in accordance with the requisite
dues have been regularly deposited during the year by the Company with approvals mandated by the provisions of section 197 read with Schedule V to
the appropriate authorities. As explained to us, the Company did not have the Act.
any dues on account of duty of sales tax, customs and duty of excise. xii. In our opinion and according to the information and explanations given to us,
According to the information and explanations given to us, no undisputed the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order
amounts payable in respect of provident fund, employees’ state insurance, is not applicable.
income tax, service tax, value added tax, goods and service tax, cess and
other material statutory dues were in arrears as at 31 March 2018 for a xiii. According to the information and explanations given to us and on the basis of
period of more than six months from the date they became payable. our examination of the records of the Company, all transactions with the related
parties are in compliance with section 177 and 188 of the Act, where applicable
(b) According to the information and explanations given to us, the following and the details have been disclosed in the standalone financial statements, as
dues outstanding of income tax, service tax and value added tax have not required by the applicable accounting standards.
been deposited by the Company on account of disputes:
xiv. According to the information and explanations given to us and based on our
Name of the Nature of dues Amount Period to Forum examination of the books and records of the Company, the Company has not
statute (` in which the where made any preferential allotment or private placement of shares or fully or partly
million) amount dispute is convertible debentures during the year under review. Accordingly, paragraph
relates pending 3(xiv) of the Order is not applicable.
Income Tax Income tax (including 474.30 Financial Commissioner xv. According to the information and explanations given to us and based on our
Act , 1961 interest but excluding Year (“FY”) of Income Tax examination of the books and records of the Company, the Company has not
penalty) 2010-2011 (Appeals) entered into any non-cash transactions with directors or persons connected
to FY 2012- with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
2013
Income Tax Income tax (including 279.80 FY 2005- Income Tax xvi. According to the information and explanations given to us, the provisions of
Act , 1961 interest but excluding 2006 Appellate section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the
penalty) Tribunal Company.
Income Tax Income tax (including 240.10 FY 2000- Commissioner
Act , 1961 interest but excluding 2001 to FY of Income Tax
penalty) 2009-2010
For B S R & Co. LLP
Income Tax Income tax 51.60 FY 2007- Commissioner Chartered Accountants
Act , 1961 (excluding interest 2008 of Income Tax Firm’s Registration No: 101248 W/W-100022
but including penalty) (Appeals)
Income Tax Income tax (including 0.50 FY 2007- Commissioner
Act , 1961 interest but excluding 2008 to FY of Income Tax Venkataramanan Vishwanath
penalty) 2009-2010 - TDS Place of Signature: Mumbai Partner
Date: April 14, 2018 Membership No: 113156

34
annexure to the independent auditors’ report
Annexure - B to the Independent Auditor’s Report of even date on the standalone financial statements
of ICICI Securities Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial reporting of ICICI
Securities Limited (the “Company”) as of 31 March 2018 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on
that date.
Management’s responsibility for internal financial controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India (the “ICAI”). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence
to the Company’s policies, safeguarding of its assets, prevention and detection of
frauds and errors, accuracy and completeness of the accounting records, and timely
preparation of reliable financial information, as required under the Act.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Auditing, issued by the
ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Inherent limitations of internal financial controls over
financial reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248 W/W-100022
Venkataramanan Vishwanath
Place of Signature: Mumbai Partner
Date: April 14, 2018 Membership No: 113156
35
balance sheet profit and loss account
at March 31, 2018 for the year ended March 31, 2018

(` in million) (` in million)
As at As at For the year For the year
Notes March 31, March 31, Notes ended March ended March
2018 2017 31, 2018 31, 2017

I EQUITY AND LIABILITIES 1 Revenue from operations

1 Shareholders' funds
(a) Share capital 3 1,610.7 1,610.7 (a) Brokerage income 10,243.0 7,755.9
(b) Reserves and surplus 4 6,640.2 3,239.8
(b) Income from services 6,522.9 4,978.9
8,250.9 4,850.5
2 Non-current liabilities (c) Interest and other operating income 22 1,583.0 1,090.3
(a) Other long term liabilities 5 957.3 826.3
(b) Long-term provisions 6 427.7 338.1 (d) Profit / (loss) on sale of securities (net) 23 219.1 213.9
1,385.0 1,164.4
Total Revenue from operations 18,568.0 14,039.0
3 Current liabilities
(a) Short-term borrowings 7 6,725.1 3,954.1 2 Other income - -
(b) Trade payables 8 - -
(i) total outstanding dues of micro - - 3 Total Revenue (1 + 2) 18,568.0 14,039.0
enterprises and small enterprises
(ii) total outstanding dues of 4 Expenses:
creditors other than micro
enterprises and small enterprises 10,164.9 8,713.6 (a) Employee benefits expenses 24 5,297.0 4,735.5
(c) Other current liabilities 9 2,076.9 1,668.0
(d) Short-term provisions 10 107.0 51.0 (b) Operating expenses 25 1,896.9 1,447.9
19,073.9 14,386.7
(c) Finance costs 26 491.2 285.0
28,709.8 20,401.6
II ASSETS (d) Depreciation and amortization 11 152.6 154.6
1 Non-current assets expense
(a) Fixed assets 11
(i) Property, plant and equipment 296.6 241.9 (e) Other expenses 27 2,226.1 2,206.2
(ii) Intangible assets 85.4 104.4
Total expenses 10,063.8 8,829.2
(iii) Capital work-in-progress 15.1 0.4
(iv) Intangible assets under 23.8 27.9 5 Profit before tax (3- 4) 8,504.2 5,209.8
development
420.9 374.6 6 Tax expense:
(b) Non-current investments 12 141.6 143.2
(c) Deferred tax assets 13 736.4 577.8 (a) Current tax 3,129.2 1,902.9
(d) Long term loans and advances 14 1,431.4 1,357.9
(b) Deferred tax (158.6) (69.2)
(e) Other non-current assets 15 34.2 811.5
2,764.5 3,265.0 Total tax expense 2,970.6 1,833.7
2 Current assets
(a) Current investments 16 - 0.7 7 Profit after tax (5-6) 5,533.6 3,376.1
(b) Stock-in-trade 17 376.6 310.9
8 Earnings per equity share:
(c) Trade receivables 18 3,098.1 7,097.5
(d) Cash and bank balances 19 14,769.5 8,669.9 Basic and diluted (in `) 28 17.18 10.48
(e) Short term loans and advances 20 6,311.9 323.8
(f) Other current assets 21 1,389.2 733.8 (Face value ` 5/- per share)
25,945.3 17,136.6
28,709.8 20,401.6 9 Significant Accounting Policies 2
III Significant Accounting Policies 2

The Notes to the financial statements form an integral part of The Notes to the financial statements form an integral part of
the Financial Statements the Financial Statements

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

Chartered Accountants Chairperson Director
ICAI Firm Registration No.:101248W/W-100022 DIN - 00043617 DIN - 06559989

VENKATARAMANAN VISHWANATH SHILPA KUMAR AJAY SARAF

Partner Managing Director & CEO Executive Director
Membership No.: 113156 DIN - 02404667 DIN - 00074885

RAJU NANWANI HARVINDER JASPAL

Mumbai, April 14, 2018 Company Secretary Chief Financial Officer

36
notes
forming part of the accounts
1 Corporate Information
ICICI Securities Limited (“the Company”), incorporated in 1995, is a public
Company engaged in the business of broking (institutional and retail), merchant
banking and advisory services.
During the year ended March 31, 2018, the Company completed the Initial Public
Offering (IPO) through an Offer for Sale of 66,925,305 equity shares of ` 5/- each
at a price of ` 520 per equity share by ICICI Bank Limited, the Holding Company,
aggregating up to ` 34,801.2 million. The equity shares of the Company were
listed on the National Stock Exchange of India Limited and BSE Limited on
April 4, 2018.
2 Significant Accounting Policies
a) Basis of preparation
The financial statements of the Company have been prepared in accordance
with generally accepted accounting principles in India (‘’Indian GAAP’’). The
Company has prepared these financial statements to comply in all material
respects with the accounting standards notified under section 133 of the
Companies Act 2013. The financial statements have been prepared on
an accrual basis and under the historical cost convention.The accounting
policies has been consistently applied by the Company except where
otherwise stated are considered with those used in the previous year.
All assets and liabilities have been classified as current or non-current
as per the Company’s normal operating cycle and other criteria set out
in the Schedule III to the Companies Act, 2013. Based on the nature of
the services and the time between the provision of services and their
realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities.
b) Use of estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles in India requires management to make
judgements, estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) as of the
date of the financial statements and the reported income, expenses and
results during the reporting period. The estimates used in the preparation
of the financial statements are based on management’s best knowledge
of current events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment to
the carrying amounts of assets or liabilities in future periods.
c) Revenue recognition
i) Brokerage income in relation to stock broking activity is recognised on
a trade date basis.
ii) Revenue from issue management, debt syndication, financial advisory
services etc., is recognised based on the stage of completion of
assignments and terms of agreement with the client. is changed accordingly.
iii) Commission income in relation to public issues / other securities
is recognised based on mobilization and intimation received from
clients/ intermediaries.
iv) Gains/ losses on dealing in securities are recognised on a trade date
basis.
v) Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
vi) Revenue from dividends is recognised when the right to receive the
dividend is established.
vii) Training fee income from financial educational programs is recognized
on an accrual basis.
d Investments
 Investments are classified into long term investments and current
investments. Investments which are intended to be held for more than
one year are classified as long term investments and investments which
are intended to be held for less than one year are classified as current
investments. Long term investments are accounted at cost and any decline
in the carrying value other than temporary in nature is provided for in
the statement of profit and loss. Current investments are valued at cost
arrived at on first in first out (‘FIFO’) basis and fair value, determined on an
individual investment basis, whichever is lower.
On disposal of an investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of profit
and loss.
e) Stock-in-trade h) Employee Benefits
Securities acquired with the intention to trade are classified as stock- in-
trade. The securities held as stock- in- trade are carried at cost arrived at
on first in first out (‘FIFO’) basis and fair value, determined on an individual
investment basis, whichever is lower. The profit or loss on sale of securities
is recognised on a trade date basis in the Statement of Profit and Loss.
Continued
f) Fixed assets
(i) Property, Plant and Equipment (PPE) / Depreciation
PPE are carried at cost less accumulated depreciation. Cost comprises
purchase price, borrowing cost if capitalisation criteria are met,
directly attributable cost of bringing the asset to its working condition
for the intended use.
Losses arising from the retirement of, and gains or losses arising from
disposal of PPE are recognised in the statement of profit and loss.
Depreciation on PPE is calculated on a straight-line basis using the rates
arrived at based on the useful lives estimated by management/ limits
specified in schedule II of the Companies Act, 2013. The Company
has used the following rates to provide depreciation on the PPE.
Asset Useful life
Tangible Assets
Office equipments comprising air conditioners, 5 years
photo-copying machines, etc.
Computers 3 years
Servers & Network 6 years
Furniture and fixtures 6.67 years
Motor vehicles 5 years
Leasehold improvements are depreciated over the lease period
subject to a maximum of 9 years.
Depreciation is provided on a straight-line basis from the date the asset
is ready for its intended use or put to use whichever is earlier. In respect
of assets sold, depreciation is provided up to the date of disposal.
Management has estimated, the useful lives of the following classes
of assets, which is lower than that indicated in schedule II of the
Companies Act, 2013 on the basis of technical assessment.
I) The motor vehicles are depreciated over the estimated useful
lives of 5 years.
The Furniture and fixture are depreciated over the estimated
II) 
useful lives of 6.67 years.
The residual values, useful lives and methods of depreciation of
property, plant and equipment are reviewed at the balance sheet date
and adjusted prospectively.
(ii) Intangible Assets / Amortisation
 Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization. Intangible assets are
amortised on a straight line basis over their estimated useful lives. The
amortisation period and the amortisation method are reviewed at least
at each financial year end. If the expected useful life of the asset is
significantly different from previous estimates, the amortisation period
Gains or losses arising from the retirement or disposal of an intangible
asset are determined as the difference between the net disposal
proceeds and the carrying amount of the asset and recognised as
income or expense in the statement of profit and loss.
The amortization rates used are:
Intangible asset Useful life/ Amortisation
period
Computer software 4 years
CMA Membership rights* 5 years
*CMA - Capital Market Authority of Oman
g) Foreign exchange transaction
Foreign currency income and expenditure items of domestic operations are
translated at the exchange rates prevailing on the date of the transaction.
Monetary foreign currency assets and liabilities of domestic foreign
operations are translated at closing exchange rates at the balance sheet
date and the resulting gains/losses are included in the statement of profit
and loss in the year in which they arise.
Income and expenditure of non-integral foreign operations are translated
at monthly average rates. The assets and liabilities of non-integral foreign
operations other than share capital and fixed assets are translated at
closing exchange rates at the balance sheet date and the resultant profits/
losses from exchange differences are accumulated in the foreign currency
translation reserve until the disposal of the net investment in the non-
integral foreign operations.
Provident Fund
Retirement benefit in the form of provident fund is a defined contribution
scheme. The Company is statutorily required to contribute a specified
portion of the basic salary of an employee to a provident fund as a part
of retirement benefits to its employees. The contributions during the year
are charged to the statement of profit and loss. The Company recognises
37
 notes
forming part of the accounts
contribution payable to the provident fund scheme as an expenditure when
an employee renders the related service.
With respect to Oman Branch, for Omani national employees, the
Company makes contributions to the Omani Public Authority for Social
Insurance Scheme calculated as a percentage of the employees’ salaries.
The Company’s obligations are limited to these contributions, which are
expensed when incurred.
Gratuity
The Company pays gratuity, a defined benefit plan to its employees
who retire or resign after completion of minimum period of five years of
continuous service and in the case of employees at overseas locations
as per rules in force in the respective countries. The Company makes
contributions to the ICICI Securities Employees Group Gratuity Fund which
is managed by ICICI Prudential Life Insurance Company Limited for the
settlement of gratuity liability.
The Company accounts for the gratuity liability as per an actuarial valuation
by an actuary appointed by the Company. In accordance with the gratuity
fund’s rules, actuarial valuation of gratuity liability is calculated based on
certain assumptions regarding rate of interest, staff mortality and staff
attrition as per the projected unit credit method made at the end of each
reporting period. Actuarial gains and losses for defined benefit plans are
recognised in full in the period which they occur in the statement of profit
and loss.
With respect to Oman Branch, the Company provides end of service
benefits to its expatriate employees. The entitlement to these benefits is
based upon the employees’ final salary and length of service, subject to
the completion of a minimum service period. The expected costs of these
benefits are accrued over the period of employment.
Compensated absence
The employees can carry forward a portion of the unutilized accrued
compensated absences and utilize it in future service periods or receive
cash compensation on termination of employment. Since the compensated
absences do not fall due wholly within twelve months after the end of the
period in which the employees render the related service and are also
not expected to be utilized wholly within twelve months after the end
of such period, the benefit is classified as long-term employee benefit.
The Company records an obligation for such compensated absences in
the period in which the employee renders the services that increase the
entitlement. The obligation expected to fall beyond 12 months is measured
on the basis of independent actuarial valuation using the projected unit
credit method. Actuarial losses/gains are recognized in the statement of
profit and loss as and when they are incurred.
Long Term Incentive
The Company has a long term incentive plan which is paid in three annual
tranches. The Company accounts for the liability as per an actuarial
valuation. The actuarial valuation of the long term incentives liability is
calculated based on certain assumptions regarding rate of interest and staff
attrition as per the projected unit credit method made at the end of each
reporting period. The actuarial losses/gains are recognized in the statement
of profit and loss in the period in which they arise.
i) Income taxes
Income tax expense is the aggregate amount of current tax and deferred
tax borne by the Company. Current tax expense and deferred tax expense
is determined in accordance with the provisions of the Income Tax Act,
1961 and tax laws prevailing in the respective tax jurisdictions where the
Company operates. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date.
Deferred tax assets and liabilities are recognised on a prudent basis for the
future tax consequences of timing differences arising between the carrying
values of assets and liabilities and their respective tax basis.The impact
of changes in the deferred tax assets and liabilities is recognised in the
statement of profit and loss.
Deferred tax assets are recognised and reassessed at each reporting date,
based upon management’s judgment as to whether their realization is
considered as reasonably certain. The Company writes-down the carrying
amount of deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be realized.
Any such write-down is reversed to the extent that it becomes reasonably
certain or virtually certain, as the case may be, that sufficient future taxable
income will be available. Deferred tax assets are recognised, in case
there are, on carry forward of unabsorbed depreciation, tax losses and
carry forward capital losses, only if there is virtual certainty supported by
convincing evidence that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
In accordance with the recommendations contained in the Guidance note
on accounting for credit available in respect of Minimum Alternative Tax
(“MAT”) issued by the Institute of Chartered Accountants of India, MAT
credit is recognised as an asset to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period
in future. MAT credit is recognised as an asset by way of a credit to the
38
Continued
statement of profit and loss and shown as MAT credit entitlement in the
year in which MAT credit becomes eligible to be recognized as an asset.
The Company reviews the “MAT credit entitlement” asset at each reporting
date and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified period.
j) Impairment of assets
The Company assesses at the reporting date whether there is an indication
that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Company estimate the
asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or cash-generating unit’s (“CGU”) net selling price and its
value in use. The recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to
the asset. In determining net selling price, recent market transactions are
taken into account, if available. If no such transactions can be identified, an
appropriate valuation model is used.
k) Provisions
Provision is recognised when an enterprise has a present obligation as a
result of a past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate
can be made. Provisions are determined based on management estimates
required to settle the obligation at the balance sheet date, supplemented
by experience of similar transactions. These are reviewed at the balance
sheet date and adjusted to reflect the current management estimates.
l) Contingent liabilities and assets
 Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount
cannot be made, is termed as a contingent liability. The existence of a
contingent liability is disclosed in the notes to the financial statements.
Contingent assets are neither recognised nor disclosed.
m) Earnings per share (“EPS”)
Basic earnings per share is calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed using the weighted average
number of equity shares and dilutive potential equity shares outstanding
during the year. For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
n) Lease
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the lease term are classified as operating leases.
Operating lease payments are recognised as an expense in the statement
of profit and loss on a straight-line basis over the lease term.
o) Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement include
cash in hand, balances with the banks and short term investments with an
original maturity of three months or less.
p) Borrowing cost
 Borrowing costs are interest and other costs (including exchange
differences from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs) incurred by the Company
in connection with the borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of those tangible fixed assets
which necessarily take a substantial period of time to get ready for their
intended use are capitalized. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
The difference between the discounted amount mobilized and redemption
value of commercial papers is apportioned on time basis over the life of the
instrument and charged as interest expense in the statement of profit and loss.
q) Derivative instruments
The Company enters into exchange traded derivative products i.e. equity /
index futures and options, for proprietary trading purposes. The derivative
contracts are recognized on a trade date basis and stated at the fair value,
being the last quoted closing price on the National Stock Exchange of
India Limited (‘NSE’) (in case not traded on NSE, last quoted closing price
on BSE Limited is considered) on the balance sheet date. Changes in the
fair value of the derivative contracts are recognized in the statement of
profit and loss.
notes
forming part of the accounts Continued
3. SHARE CAPITAL
(` in million)
As at As at
March 31, 2018 March 31, 2017
Authorised:
400,000,000 equity shares of ` 5/- each (March 31, 2017 : 2,000.0 2,000.0
1000,000,000 equity shares of ` 2/- each)
5,000,000 preference shares of ` 100/- each (March 31, 2017 : 500.0 500.0
5,000,000 of preference shares of
` 100/- each)
2,500.0 2,500.0
Issued, subscribed and fully paid-up shares:
322,141,400 equity shares of ` 5/- each, fully paid (March 31, 2017 : 1,610.7 1,610.7
805,353,500 equity shares of ` 2/- each, fully paid)
Total issued, subscribed and fully paid-up share capital 1,610.7 1,610.7

a Reconciliation of the shares at the beginning and at the end of the reporting year
Equity shares
As at March 31, 2018 As at March 31, 2017
Nos (` million) Nos (` million)
At the beginning of the year 805,353,500 1,610.7 805,353,500 1,610.7
Issued during the year - Bonus issue - - - -
Issued during the year - ESOP - - - -
Consolidation of shares during the year-Nos (refer note below)* (483,212,100) - - -
Outstanding at the end of the year 322,141,400 1,610.7 805,353,500 1,610.7

*The shareholders of the Company have, at the Extraordinary General Meeting (EGM) held on December 4, 2017 accorded their consent to the consolidation of the
authorised and issued equity share capital of the Company by increasing the nominal value of the equity share from ` 2/- (Rupees two only) each to ` 5/- (Rupees five only)
each. The record date for the consolidation was December 8, 2017. Accordingly, the revised authorised equity share capital of the Company now stands at 400,000,000
equity shares of ` 5/- each and issued, subscribed and paid up equity share capital 322,141,400 equity shares of ` 5/- each.

During the year ended March 31, 2018, the Company completed the Initial Public Offering (IPO) through an Offer for Sale of 66,925,305 equity shares of ` 5/- each at a
price of ` 520/- per equity share by ICICI Bank Limited, the Holding Company, aggregating upto ` 34,801.2/- million. The equity shares of the Company were listed on the
National Stock Exchange of India Limited and BSE Limited on April 4, 2018.

b Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of ` 5/- per share with effect from December 4, 2017. Till December 3, 2017, the Company had only
one class of equity share having par value of ` 2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in
Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year, the Company had declared and paid interim dividend of ` 5.50- per share amounting to ` 2,132.5 million. Further the Board of Directors at their meeting
held on April 14, 2018 proposed a final dividend of ` 3.90 (Previous Year ` Nil) per share, subject to the approval of the members at the ensuing Annual General Meeting.
In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the Balance Sheet date’ as notified by Ministry of Corporate Affairs through
amendments to Companies Accounting Standard (Amendment) Rules, 2016, dated March 30, 2016, the Company has not accounted for proposed dividend as a liability
as at March 31, 2018. If approved the total liability arising to the Company would be ` 1,514.6 million including dividend distribution tax, (Previous Year ` Nil).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c Pattern of Shareholding
Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company :

As at March 31, 2018 As at March 31, 2017

Nos % of Holding Nos % of Holding
Shareholder
ICICI Bank Limited & its nominees 255,216,095 79.22% 805,353,500 100%
Total 255,216,095 79.22% 805,353,500 100%

d Aggregate number of bonus share issued, shares issued for consideration other than cash and shares bought back the period for five years immediately preceding
the reporting date :

Particulars 2018 2017 2016 2015 2014

No of Shares
Equity shares bought back by the company - - - - -

39
 notes
forming part of the accounts Continued

4. RESERVES AND SURPLUS

Reserves and surplus consist of the following:
As at (` in million) (` in million)
March 31, 2018
As at As at As at
March 31, 2017 March 31,2018 March 31, 2017
(a) Securities premium account 8. TRADE PAYABLES
Opening balance 244.0 244.0 Trade payables consist of the following:
Add : Additions during the year (net) - - (a) total outstanding dues of micro
Closing balance 244.0 244.0 - -
enterprises and small enterprises
(b) Foreign currency translation reserve
(Refer note 34 for details of dues to
Opening balance 18.6 18.8 micro and small enterprises)
Add : Additions during the year (net) (0.7) (0.2)
(b) total outstanding dues of creditors
Closing balance 17.9 18.6 other than micro enterprises and 10,164.9 8,713.6
(c) General reserve small enterprises
Opening balance 666.8 666.8 TOTAL 10,164.9 8,713.6
Add : Additions during the year (net) 0.0 -
Closing balance 666.8 666.8
9. OTHER CURRENT LIABILITIES
(d) Surplus i.e. balance in the statement
of profit and loss Other current liabilities consist of the following:
Opening balance 2,310.4 1,402.0 (a) Income received in advance 15.0 37.6
Add: profit after tax for the year 5,533.6 3,376.1 (b) Others
7,844.0 4,778.1
1) Statutory liabilities 656.6 312.9
Less: Appropriations
Interim dividend on equity shares 1,771.8 2,050.3 2 Employee related liabilities 1,370.0 1,276.7
Dividend distribution tax on equity 360.7 417.4 3) Other liabilities 35.3 40.8
dividend
TOTAL 2,076.9 1,668.0
Closing balance 5,711.5 2,310.4
TOTAL 6,640.2 3,239.8
10. SHORT TERM PROVISION
5. OTHER LONG TERM LIABILITIES
Short term provision consist of the following:
Other long term liabilities consist of the following:
Other liabilities 957.3 826.3 Provision for employees benefits
TOTAL 957.3 826.3 i) Provision for gratuity
84.1 41.1
Other liabilities include - (Refer Note 30)
a) Long term incentive payable to ii) Provision for compensated
714.0 635.3 22.9 9.9
the employees absence
b) Others 243.3 191.0
TOTAL 107.0 51.0
6. LONG TERM PROVISIONS
Long-term provisions consist of the following:

Provision for employee benefits

(a) Provision for gratuity
382.7 320.3
(Refer Note 30)
(b) Provision for compensated absence 45.0 17.8
TOTAL 427.7 338.1

7. SHORT TERM BORROWINGS

Short term borrowings consist of the following:
(a) Secured loans
Bank overdraft - -
(Secured against first charge on all
receivables, book debts, cash flows,
and proceeds arising therefrom and
a lien on fixed deposits including but
not limited to the Company’s cash in
hand both present and future)
(b) Unsecured loans
Commercial paper 6,725.1 3,954.1
(repayable within one year)
TOTAL 6,725.1 3,954.1

40
 11. Fixed Assets
Fixed assets consist of the following:
(` million)
Property, Plant and Equipment Intangible
Computers Furniture and Office Vehicles Lease hold Total (A) Software CMA Total (B) TOTAL (A+B)
fixtures equipment improvements membership right
notes

Gross Block (At Cost)

At April 1, 2016 248.3 31.3 67.8 116.7 209.7 673.8 229.0 25.8 254.8 928.6
Additions 24.4 3.7 4.5 28.8 42.9 104.3 50.7 - 50.7 155.0
Sale / Adjustment * 39.0 2.9 2.6 17.1 12.7 74.3 45.8 0.5 46.3 120.6
At March 31, 2017 233.7 32.1 69.7 128.4 239.9 703.8 233.9 25.3 259.2 963.0
Additions 94.4 7.2 17.1 33.0 15.9 167.6 44.8 - 44.8 212.4
forming part of the accounts

Sale / Adjustment * 40.3 1.5 2.5 30.0 7.0 81.3 50.4 (0.1) 50.3 131.6
At March 31, 2018 287.8 37.8 84.3 131.4 248.8 790.1 228.3 25.4 253.7 1,043.8

Depreciation/ Amortisation
At April 1, 2016 166.4 17.1 32.5 60.7 146.5 423.2 125.8 25.8 151.6 574.8
Additions 47.5 6.6 13.0 23.4 15.9 106.4 48.2 - 48.2 154.6
Sale / Adjustment * 38.8 0.7 1.8 14.3 12.1 67.7 44.5 0.5 45.0 112.7
At March 31, 2017 175.1 23.0 43.7 69.8 150.3 461.9 129.5 25.3 154.8 616.7
Additions 44.6 3.9 12.3 24.4 18.0 103.2 49.4 - 49.4 152.6
Sale / Adjustment * 38.3 1.4 2.4 24.2 5.3 71.6 36.0 (0.1) 35.9 107.5
At March 31, 2018 181.4 25.5 53.6 70.0 163.0 493.5 142.9 25.4 168.3 661.8

Net Block
At March 31, 2017 58.6 9.1 26.0 58.6 89.6 241.9 104.4 0.0 104.4 346.3
At March 31, 2018 106.4 12.3 30.7 61.4 85.8 296.6 85.4 0.0 85.4 382.0

Notes: (` In million)
At March 31, 2017 * Fixed assets sale / adjustments includes effect of foreign currency translation amounting to ` 0.0 million (Previous year ` 0.3 million).
At March 31, 2018 * Fixed assets sale / adjustments includes effect of foreign currency translation amounting to ` 0.0 million (Previous year ` 0.0 million).
Continued

41
 notes
forming part of the accounts Continued

(` in million) (` in million)

As at As at As at As at
March 31,2018 March 31, 2017 March 31,2018 March 31, 2017
12. NON- CURRENT INVESTMENTS 14. LONG TERM LOANS AND ADVANCES
Non-current investments consist of the following  (` in million) Long term loans and advances consist of the following:
Quantity Face As at As at  nsecured, considered good (unless
U
Nos. value March 31, March 31, stated otherwise)
Name of the Company per unit 2018 2017 i) Capital advances 0.1 -
Trade Investments ii) Security deposit for leased premises
In equity instruments (valued and assets 270.8 334.9
at cost) (fully paid) iii) Security deposit with stock
Subsidiary Company: exchanges 55.8 25.8
(a) ICICI Securities Holding 1,664 (1,664) ` 10/ (`10) 728.2 728.2 iv) Advance tax 1,063.5 971.8
Inc.(unquoted) [net of provision for tax of ` 12,642.9
Less :Provision for (605.5) (605.5) million (March 31, 2017 :` 9,493.7)]
impairment v) Deposit with related parties
122.7 122.7 a) ICICI Lombard General
Others (fully paid): Insurance Company Limited 0.1 0.1
(a) BSE Limited (quoted) 11,414 (11,414) ` 2 / (` 2) 0.0 0.0 vi) Security deposit with related parties
(b) Receivable Exchange of 1,500,000 ` 10 / 15.0 15.0 a) ICICI Bank Limited 2.6 2.6
India Limited (unquoted) (1,500,000) (` 10) vii) Other loans and advances
(c) Universal Trustees Private 3,00,000 ` 10 / 10.6 9.4 a) Prepaid expenses 14.4 1.9
Limited (unquoted) (180,000) (` 10)
b) Other security deposits 11.2 6.8
(d) Parabolic Drugs Limited Nil (794,000) Nil / (` 10) - 45.5
(quoted) c) Others 12.9 14.0
25.6 69.9 TOTAL 1,431.4 1,357.9
Less :Provision for (6.7) (49.4)
impairment 15. OTHER NON-CURRENT ASSETS
18.9 20.5 Other non-current assets consist of the following:

TOTAL 141.6 143.2

Others:
1) Aggregate carrying 0.0 2.8
(a) Interest receivable 0.9 9.0
amount of quoted
investments (b) Fixed deposits with banks*
2) Aggregate market value 8.6 17.9 i) In India 24.8 794.1
of quoted investments ii) Outside India 8.5 8.4
3) Aggregate carrying 141.6 140.4 33.3 802.5
amount of unquoted
TOTAL 34.2 811.5
investments
4) Aggregate amount of 612.1 654.9 *Fixed deposits under lien with stock exchanges amounted to ` 19.5 million
diminution in the value of (March 31, 2017: ` 731.3 million) and kept as collateral security towards bank
investments guarantees issued amounted to ` 11.1 million (March 31, 2017: ` 8.6 million) and
kept as collateral security against bank overdraft facility amounted to ` Nil (March

` 0.0 million indicates values are lower than ` 0.1 million, where applicable
31, 2017: ` 60.0 million) and others ` 2.7 million (March 31, 2017: ` 2.6 million)

13. DEFERRED TAX ASSETS

16. CURRENT INVESTMENTS
The break-up of deferred tax assets is given below:
Current investments consist of the following
Deferred tax asset in respect of:
(` in million)
(a) Provision for doubtful debts 45.0 22.1
Quantity NAV per As at As at
(b) Provision for gratuity 161.5 125.1 Name of the Company Nos unit March 31, March 31,
(c) Provision for compensated absence 23.5 9.6 2018 2017
(d) Provision for lease rent escalation 76.2 65.3 Mutual funds (quoted) :
(e) Depreciation and amortisation 58.6 44.1 ICICI Mutual Fund Fixed Nil (50,000) Nil / - 0.7
(f) Provision for investments 0.8 5.7 Maturity Plan (units of ` 14.01
` 10/- each, fully paid)
(g) Provision for long term incentive and 362.1 305.7
statutory bonus  - 0.7

(h) Revenue Recognition 8.1 - Current investments are valued at cost and market value whichever is lower.

(i) Provision for foreign currency 0.2 - Aggregate carrying amount of - 0.7
translation reserve quoted investments

(j) Marked to market loss 0.4 0.2 Aggregate market value of - 0.7
quoted investments
TOTAL 736.4 577.8

42
notes
forming part of the accounts Continued

(` in million) (` in million)
As at As at
Quantity
March 31, March 31, As at As at
(Face Value)
2018 2017 March 31,2018 March 31, 2017
17. STOCK-IN-TRADE 19. CASH AND BANK BALANCES
Stock-in-trade consist of the following: Cash and bank balances consist of the following:
(a) 
Equity shares (quoted) (i) Cash and cash equivalents
(fully paid) Cash on hand * 0.0 0.0
IRB InvIT Fund-EQUITY 365,000 (Nil) / 29.9 -
Cheques on hand - 10.2
` 102 each
Balances with Banks
Mahindra Lifespace Developers 100(100) / 0.0 0.0
Limited (` 10 each) (a) In current accounts with banks
29.9 0.0 i) In India with scheduled banks 1,302.6 1,010.1
(b) Non-convertible debentures ii) Outside India 14.4 32.3
(quoted) (fully paid) (b) Fixed Deposit with original
8.90% Indiabulls Housing Nil(1,790) / - 1.8 250.0 -
maturity less than 3 months
Finance Ltd. 26 09 2021 ` 1,000 each
1,567.0 1,052.6
9.10 % Dewan Housing Finance 149,095 149.7 150.1
Corp Limited (150,095) / (ii) Other bank balances
` 1,000 each Fixed deposits in India** 13,202.5 7,617.3
9.25 % Dewan Housing Finance Nil (33,683) / - 33.5 13,202.5 7,617.3
09/09/2023 ` 100 each TOTAL 14,769.5 8,669.9
10.75 %Dewan Housing Finance 32 (50) / - 50.3
23/08/2099 ` 1,000,000 * ` 0.0 million indicates values are lower than ` 0.1 million, where applicable
each ** Fixed deposits under lien with stock exchanges amounted to ` 11,739.6
RCL Market Linked Debentures Nil (375) / - 53.7 million (March 31, 2017 : ` 6,936.5 million) and kept as collateral security
Series B-190 ` 100,000 each towards bank guarantees issued amounted to ` 372.2 million (March 31, 2017 :
RCL Market Linked Debentures Nil (150) / - 21.5 ` 0.4 million) and kept as collateral security against bank overdraft facility
Series B-198 ` 100,000 each amounted to ` 1,089.7 million (March 31, 2017 : ` 504.2 million) and others
` 1.0 million (March 31, 2017 : ` 80.7 million)
8.75 % ERFL 22-03-2021 150,000(Nil) / 148.5 -
** Fixed deposits other than under lien having original maturity more than 3
` 1000 each
months ` Nil (March 31, 2017 : ` 95.5 million)
298.2 310.9
(c) Bonds (quoted) (fully paiwd) 20. SHORT TERM LOANS AND ADVANCES
8.85 % HDFC Bank 12-05-2099 4 (Nil) / 4.0 - Short term loans and advances consist of the following:
` 1,000,000 each
8.75 % Axis Bank 28-06-2099 19 (Nil) / 18.9 - Secured, considered good
` 1,000,000 each i) Margin trade funding 5,560.0 -
9.50 % Yes Bank 23-12-2099 25 (Nil) / 25.6 - ii) ESOP Funding 226.9 49.6
` 1,000,000 each Unsecured, considered good
48.5 - i) Security deposit for leased
TOTAL 376.6 310.9 premises and assets 14.1 22.9
ii) Other loans and advances
1) Stock in trade are valued at cost or market value whichever is lower.
a) Prepaid expenses 33.7 34.0
2) Aggregate carrying value of quoted securities 376.6 310.9
3) Aggregate market value of quoted securities 379.3 314.4 b) Advance to creditors 78.8 28.1
4) ` 0.0 million indicates values are lower than ` 0.1 million, where applicable c) Other advances 398.4 189.2
TOTAL 6,311.9 323.8
18. TRADE RECEIVABLES
Trade receivables consist of the following: 21. OTHER CURRENT ASSETS
Secured Other current assets consist of the following:
(a) Receivables outstanding for a period (a) Accrued income from services 366.0 438.5
exceeding six months:
(b) Accrued interest 463.4 286.0
i) Considered good - -
(c) Others 559.8 9.3
ii) Considered doubtful - -
TOTAL 1,389.2 733.8
(b) Others
i) Considered good 2,599.2 6,519.3 Others includes amounts due from ICICI Bank Ltd ` 545.9 million towards
ii) Considered doubtful - - reimbursement of IPO expenses
Less: Allowances for doubtful debts - -
TOTAL (A) 2,599.2 6,519.3 22. INTEREST AND OTHER OPERATING INCOME
Unsecured Interest and other operating income consist of the following:
(a) Receivables outstanding for a period (` in million)
exceeding six months: For the year For the year
i) Considered good 3.4 7.8 ended March ended March
ii) Considered doubtful 72.1 46.8 31, 2018 31, 2017
Less: Allowances for doubtful debts (72.1) (46.8) (a) Interest on
(b) Others i)  Fixed deposits and application
805.8 602.8
i) Considered good 495.5 570.4 money
ii) Considered doubtful 48.6 7.8 ii) Funding and late payments 746.3 474.3
Less: Allowances for doubtful debts (48.6) (7.8) iii) Securities held as stock-in-trade 22.0 3.8
TOTAL (B) 498.9 578.2 iv) Other advances and deposits 0.2 0.2
TOTAL (A) + (B) 3,098.1 7,097.5 (b) Dividend income 3.0 0.2
Dues from directors and officers Nil (March 31, 2017:Nil) (c) Other income 5.7 9.0
TOTAL 1,583.0 1,090.3

43
 notes
forming part of the accounts Continued
23. PROFIT / (LOSS) ON SALE OF SECURITIES (NET) (` in million)
Profit/ (Loss) on sale of securities consist of the following: For the year For the year
(` in million) ended March ended March
For the year For the year 31, 2018 31, 2017
ended March ended March (h) Communication expenses 181.7 145.9
31, 2018 31, 2017
(a) Profit/(loss) on securities held (i) (Profit) / Loss on sale of fixed assets (net) 16.8 2.5
as stock in trade / current 215.6 213.9 (j) Advertisement and publicity 86.2 85.1
investments (net)
(b) Profit/(loss) on sale of long term (k) Printing and stationery 28.5 32.3
3.5 -
investments (net) (l) Subscription and periodicals 83.5 75.7
TOTAL 219.1 213.9 (m) Professional fees 109.2 106.9
(n) Payments to non-executive directors 5.1 4.0
24. EMPLOYEE BENEFITS EXPENSES
(o) Auditors' remuneration (refer note
Employee benefits expense consist of the following: 8.7 8.6
below) #
(` in million) (p) Corporate Social Responsibility
91.6 65.4
For the year For the year (CSR) expenses (refer note 38)
ended March ended March (q) Recruitment expenses 31.0 23.1
31, 2018 31, 2017
(r) Net gain or loss on foreign currency
(a) Salaries, wages and bonus 4,796.9 4,240.4 19.3 0.4
transaction and translation
(b) Contribution to gratuity / provident
280.0 268.2 (s) Royalty expenses 33.8 -
and other funds
(c) Staff welfare expenses 220.1 226.9 (t) Donation - 0.6
TOTAL 5,297.0 4,735.5 TOTAL 2,226.1 2,206.2

25. OPERATING EXPENSES For the year For the year

# Auditors’ remuneration:
Operating expenses consist of the following: ended March ended March
31, 2018 31, 2017
(` in million)
For statutory audit 5.3 5.3
For the year For the year
ended March ended March for taxation matters 0.6 0.7
31, 2018 31, 2017 for other services (certification) 2.5 2.5
(a) Brokerage and commission 907.2 616.8 for reimbursement of expenses 0.3 0.1
(b) Transaction charges 100.9 89.0 Total 8.7 8.6
(c) Turnover fees and stamp duty 25.3 6.4
28. Earnings per equity share
(d) Custodial and depository charges 471.7 378.2
The computation of basic and diluted earnings per share is given below:-
(e) Call centre charges 123.2 125.6
Year ended Year ended
(f) Franking charges 1 93.9 91.0 Particulars
March 31, 2018 March 31, 2017
(g) Scanning expenses 47.1 36.9 Basic & Diluted earnings per share
(h) Customer loss compensation 16.1 42.2 Net profit after tax, before preference
dividend (` in million) 5,533.6 3,376.1
(i) Other operating expenses 32.7 27.3
Net profit after tax and preference
(j) Bad and doubtful debts 78.8 34.5 dividend (` in million) (A) 5,533.6 3,376.1
TOTAL 1,896.9 1,447.9 Weighted average no. of equity shares
outstanding (in million) (B) 322.1 322.1
Basic and diluted earnings per share
1. Net of recoveries 55.5 39.4
(`) (A) / (B) 17.18 10.48
Nominal value per share (`) 5.00 5.00
26. FINANCE COSTS
Finance cost consist of the following: The shareholders of the Company have, at the Extraordinary General Meeting
(EGM) held on December 4, 2017 accorded their consent to the consolidation of
(` in million) the authorised and issued equity share capital of the Company by increasing the
For the year For the year nominal value of the equity share from ` 2/- (Rupees two only) each to ` 5/- (Rupees
ended March ended March five only) each. The record date for the consolidation was December 8, 2017.
31, 2018 31, 2017 Accounting Standard 20 on ”Earnings per share”, requires an adjustment in the
(a) Interest expense 483.3 276.7 calculation of basic and diluted earnings per share for all the periods presented
(b) Other borrowing cost 7.9 8.3 if the number of equity or potential equity shares outstanding change as a
TOTAL 491.2 285.0 result of consolidation of shares. Pursuant to the shareholders’ consent to the
consolidation of the equity shares at the EGM mentioned above, the weighted
average numbers of shares and consequently the basic and diluted earnings
27. OTHER EXPENSES per share have been accordingly adjusted in the financial statements for all the
Other expenses consist of the following: periods presented in accordance with Accounting Standard 20 on ”Earnings
per share”.
(` in million)
For the year For the year 29 Related Party Disclosures
ended March ended March List of Related Parties:
31, 2018 31, 2017 A. Related party where control exists irrespective whether transactions
(a) Rent and amenities 665.5 720.3 have occurred or not
Holding Company: ICICI Bank Limited
(b) Insurance 3.8 3.3
Subsidiary Companies: ICICI Securities Holding Inc.; ICICI
(c) Travelling and conveyance expenses 208.6 214.3 Securities Inc.
(d) Business promotion expenses 124.3 180.5 B. Other related parties where transactions have occurred during the year
(e) Repairs, maintenance, upkeep Fellow Subsidiaries:
412.8 384.1 ICICI Securities Primary Dealership Limited; ICICI Prudential Life Insurance
and others
(f) Rates and taxes 52.5 54.6 Company Limited; ICICI Lombard General Insurance Company Limited;
ICICI Prudential Asset Management Company Limited; ICICI Home Finance
(g) Electricity expenses 63.2 98.6 Company Limited; ICICI Venture Funds Management Company Limited

44
notes
forming part of the accounts Continued
C. Associate of Holding Company : ICICI Foundation for Inclusive Growth (` in million)
D. Key Management Personnel Nature of Transaction Holding SubsidiaryFellow
Company Companies
Subsidiary
a) Ms. Shilpa Kumar Managing Director & CEO (from Companies
November 1, 2016) March March March March March March
b) Mr. Anup Bagchi Managing Director & CEO (till October 31, 31, 31, 31, 31, 31,
31, 2016) 2018 2017 2018 2017 2018 2017
c) Mr. Ajay Saraf Executive Director ICICI Prudential Asset Management 1.0 -
Company Limited
 he following transactions were carried out with the related parties in the ordinary
T
Fixed assets sold - 3.8
course of business.
Investment
(` in million) ICICI Securities Holding Inc 122.7 122.7
Nature of Transaction Holding Subsidiary Fellow [Net of Provision of ` 605.5 million
Company Companies Subsidiary (Previous year ` 605.5 million)]
Companies Fixed deposits 1,717.6 735.4
March March March March March March Accrued interest Income 59.1 42.9
31, 31, 31, 31, 31, 31, Bank balance 1,290.4 1,001.5
2018 2017 2018 2017 2018 2017 (Net of current liabilities of ` 0.0 million
Income from services and brokerage (commission
257.5 399.6 (Previous year ` 4.5)
and fees) Deposit 2.6 2.6
ICICI Home Finance Company Limited 1.9 28.7 ICICI Lombard General Insurance 0.1 0.1
Company Limited
ICICI Prudential Life Insurance Company Limited 513.2 733.7
Loans & advances (including prepaid 0.1 0.0
ICICI Securities Primary Dealership Limited 0.6 1.2 expenses)
ICICI Lombard General Insurance Company Limited 9.1 9.3 ICICI Lombard General Insurance 5.7 4.8
ICICI Prudential Asset Management Company 183.6 76.7 Company Limited
Limited ICICI Prudential Life Insurance Company 2.5 2.1
Limited
ICICI Securities Inc 11.4 -
ICICI Securities Primary Dealership 0.1 0.1
ICICI Venture Funds Management Company Limited 0.5 13.5 Limited
ICICI Investment Management Company Limited Other current assets *545.9 -
ICICI Bank UK PLC Receivables - -
Interest income 86.9 216.7 ICICI Prudential Life Insurance Company 17.7 0.3
Limited
Staff expenses 12.6 13.0
ICICI Lombard General Insurance 1.1 0.0
ICICI Securities Primary Dealership Limited (0.2) (0.0) Company Limited
ICICI Prudential Life Insurance Company Limited 3.5* 2.4 ICICI Prudential Asset Management 22.6 2.1
ICICI Lombard General Insurance Company Limited 92.1 83.0 Company Limited
ICICI Prudential Asset Management Company (0.1) - ICICI Home Finance Company Limited 0.2 3.9
Limited ICICI Venture Funds Management - 9.5
Company Limited
Operating expenses 633.1 526.2
ICICI Securities Primary Dealership 2.1 -
ICICI Securities Inc 214.7 161.7 Limited
Other expenses 211.1 154.9 Accrued income 8.6 10.7
ICICI Lombard General Insurance Company Limited 3.6 3.2 ICICI Lombard General Insurance 0.6 0.7
ICICI Securities Primary Dealership Limited 1.0 1.2 Company Limited
ICICI Prudential Life Insurance Company 33.7 118.2
ICICI Prudential Life Insurance Company Limited 1.8 2.9 Limited
ICICI Securities Inc 10.5 7.6 ICICI Prudential Asset Management 1.9 8.8
Finance cost 6.2 7.7 Company Limited
Dividend paid 1,771.8 2,050.3 ICICI Home Finance Company Limited 0.1 3.2
Purchase value of bond - - ICICI Venture Funds Management - 0.3
Company Limited
ICICI Securities Primary Dealership Limited - 66.4
` 0.0 million indicates values are lower than ` 0.1 million, where applicable
` 0.0 million indicates values are lower than ` 0.1 million, where applicable
The Company has contributed ` 86.8 million (Previous year ` 49.0 million) to the
*Excludes an amount of ` 3.5 million (March 31, 2017 : ` Nil), received as premium corpus of ICICI Foundation for Inclusive Growth as part of the CSR expenditure.
by ICICI Prudential Life Insurance Company Limited from customers of the Company
under the Group Insurance Policy. The premium is paid by the customers directly to During the year ended March 31, 2018, the Company completed the Initial Public
ICICI Prudential Life Insurance Company Limited. Offering (IPO) through an offer for sale of 66,925,305 equity shares of ` 5/- each
at a price of ` 520/- per equity share, by ICICI Bank Limited, the Holding Company,
aggregating upto ` 34,801.2 million. As the IPO was through an offer for sale, the
(` in million)
Company did not receive any proceeds from the offer and the proceeds were paid
Nature of Transaction Holding Subsidiary
Fellow
to ICICI Bank Limited. Hence the same has not been disclosed under related party
Company Companies
Subsidiary
Companies disclosure.
March March March March March March *The expenses incurred by the Company in relation to the proposed IPO amounting
31, 31, 31, 31, 31, 31, to ` 545.9 million during the year ended March 31, 2018 is reimbursable by ICICI Bank
2018 2017 2018 2017 2018 2017 Ltd and it is forming part of other current assets.
Share capital 1,276.1 1,610.7
Payables 94.8 110.8 Key Management Personnel
ICICI Lombard General Insurance 0.7 0.5 The details of compensation paid for the year ended March 31, 2018 as below -
Company Limited (` in million)
ICICI Securities Primary Dealership 0.2 0.5 Key Management Personnel March 31, 2018 March 31, 2017
Limited Shilpa Kumar, MD & CEO
ICICI Prudential Life Insurance Company 0.1 0.6 31.7 9.8
(from November 1, 2016)
Limited Anup Bagchi, MD & CEO
ICICI Securities Inc 87.8 14.6 8.5 40.5
(till October 31, 2016)
Fixed assets purchased - 1.2
Ajay Saraf, Executive Director 28.4 28.4
ICICI Prudential Life Insurance Company 1.7 -
Limited  he compensation paid includes bonus, long term incentives and contribution to
T
provident fund.

45
 notes
forming part of the accounts Continued
During the year ended March 31, 2009, the Company had paid managerial (` in million)
remuneration which was in excess of the limits specified by the relevant
provisions of the Companies Act, 1956. The Company had made an application Particulars Year ended Year ended
to the appropriate regulatory authorities in this regard, for payment of such March 31, 2018 March 31, 2017
excess remuneration paid to managerial personnel. The limits specified by the iv) Investment details of plan assets
Companies Act, 1956 would be ` 4.4 million. Insurer Managed Funds 85.00% 97.00%
The Company has received response in respect of Mr. A Murugappan from the Others 15.00% 3.00%
Ministry of Corporate Affairs on April 21, 2011 and has sought clarifications on v) Assumptions
the same vide letter dated May 24, 2011 and letter dated February 8, 2012.
Interest rate (p.a.) 7.30% 6.75%
During the quarter ended March 31, 2018, the Company has recovered the
amount which was due from Mr. A Murugappan in line with communication Salary escalation rate (p.a.) 7.00% 7.00%
dated February 8, 2012. The Company has communicated the recovery to the Estimated rate of return on plan 8.00% 8.00%
Ministry of Company Affairs vide letter dated April 5, 2018 assets (p.a.)

30 Employee benefits The Company expects to contribute ` 20.0 million (March 31, 2017 : ` 20.0
a) Gratuity million) to Gratuity Fund in 2018-2019.
 The following table summarizes the components of net expenses for
 The expected rate of return on plan assets is based on the expectation
gratuity benefits recognised in the statement of profit and loss and the
of the average long term of return expected on investments of the fund
amounts recognised in the balance sheet.
during the estimated term of the obligation.
(` in million)
vi) The following table summarizes the experience adjustments
Particulars Year ended Year ended
March 31, 2018 March 31, 2017 (` in million)
i) Reconciliation of defined benefit Year ended
obligation (DBO) : Particulars March March March March March
Change in Defined Benefit Obligation 31, 2018 31, 2017 31, 2016 31, 2015 31, 2014
Opening defined benefit obligation 398.7 312.5 Defined benefit obligation 468.3 398.7 312.5 240.8 182.5
Service cost 50.8 39.8
Plan assets 6.3 40.5 38.5 60.3 55.7
Interest cost 27.7 24.5
Surplus/(deficit) (462.0) (358.1) (274.0) (180.5) (126.8)
Actuarial (gain) / loss 25.4 55.5
Experience adjustments on plan liabilities 34.5 34.9 24.8 24.1 21.0
Past service cost 1.4 -
Liabilities assumed on acquisition / 13.0 (15.7) Experience adjustments on plan assets 0.6 4.4 (4.9) 10.6 1.0
(settled on divestiture) The estimates of future salary increases considered takes into account the
Benefits paid (48.7) (18.0) inflation, seniority, promotion and other relevant factors.
Closing defined benefit obligation 468.3 398.6
b) Long Term Incentive Plan
Change in Fair Value of Assets Liability for the scheme is determined based on actuarial valuation which
Opening fair value of plan assets 40.5 38.5 has been carried out using the projected accrued benefit method.
Expected return on plan assets 0.9 1.3 Assumptions
Actuarial gain / (loss) 0.6 4.3
Year ended Year ended
Contributions by employer - 30.0 Particulars
March 31, 2018 March 31, 2017
Assets acquired on acquisition / 13.0 (15.6)
Discount rate 6.80% 6.50%
(settled on divestiture)
Benefits paid (48.7) (18.0) Increase in Incentive amount 0.00% 0.00%
Closing fair value of plan assets 6.3 40.5
31. Earnings and expenditure in foreign currency (on accrual basis)
ii) Balance sheet
The details regarding earnings and expenditure in foreign currency (on accrual
Net asset / (liability) recognised in
basis) is given in the table below
the balance sheet:
Present value of the defined benefit (468.3) (398.6) (` in million)
obligations Year ended Year ended
Particulars
Fair value of plan assets at the end of 6.3 40.5 March 31, 2018 March 31, 2017
the year Earnings:
Unrecognised past service cost - - Income from services 279.7 193.7
Net Liability (462.0) (358.1)
Expenditure:
Liability recognized in the balance (462.0) (358.1)
sheet Procurement and other expenses 464.9 363.1
Current (79.3) (37.9)
32 Capital and other commitments
Non-current (382.7) (320.2)
Estimated amount of contracts remaining to be executed on capital account and
iii) Statement of profit and loss
not provided for is ` 17.3 million (March 31, 2017 : ` 22.5 million).
Expenses recognised in the
Statement of Profit and Loss: 33 Contingent liabilities
The following are details of contingent liabilities:
Current Service cost 50.8 39.8
a.  Direct tax matters disputed by the Company are ` 1,046.3 million
Interest on defined benefit obligation 27.7 24.5 (March 31, 2017 : ` 1,420.3 million).
Expected return on plan assets (0.9) (1.3) b.  Indirect tax matters disputed by the Company are ` 156.1 million
(March 31, 2017 : ` 156.1 million).
Actuarial (gain) / loss 24.8 51.2
c. Customer complaints not acknowledged as debts are ` Nil (March 31, 2017 :
Past Service Cost 1.4 - ` 32.5 million).
Total included in ‘Employee benefits 103.8 114.2 d. Underwriting commitments by the Company are Nil (March 31, 2017 :
expense’ ` 1,475.1 million).
Actual Return on Plan Assets 1.5 5.7

46
notes
forming part of the accounts Continued
34 Micro, small and medium enterprises (` in million)
There are no micro, small and medium enterprises, to which the Company
Particulars Year ended Year ended
owes dues, as at March 31, 2018. This information as required to be disclosed
March 31, 2018 March 31, 2017
under the Micro, Small and Medium Enterprises Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of B) Total Minimum Lease Payments
information available with the Company. under non cancellable operating
leases for each of the following
35 Derivative Instruments periods :
The following are the details of derivative position: Minimum Lease Payments :
As at March 31, 2018 As at March 31, 2017 - Not later than one year 139.6 125.2
Particulars Quantity Market Value Quantity Market Value - Later than one year but not later 540.8 511.6
Nos ` in million Nos ` in million than five years
Futures : - Later than five years 136.8 263.0
Buy 75,000 761.4 51,000 469.1
Options : 37-B Specified Bank Notes (SBN) held and transacted
Call Buy - - 60,375 0.9 The details of Specified Bank Notes (SBN) held and transacted during the period
Call Sell (82,500) (2.8) (132,375) (2.7) November 8, 2016 to December 30, 2016 are as provided in the table below -
Put Buy 75,000 11.1 101,625 4.9 (` in million)
Put Sell (105,000) (6.3) (197,775) (8.2)
Specified Bank Other Total
Interest rate futures (Buy) - - 300,000 31.2 Particulars
Notes Denomination Notes

36 Un-hedged foreign currency exposure Closing cash in hand as on November 8, 2016 - - -

The following is the details of un-hedged foreign currency exposure. Add : Permitted receipts - 0.0 0.0
Particulars Amount Less : Permitted payments - - -

Receivables US $ 0.6 million @ closing of 1 USD = ` 65.175 (Previous year Less : Amount deposited in Banks - (0.0) (0.0)
US $ 0.1 million @ closing rate of 1 USD = ` 64.85) and GBP 0.0 Closing cash in hand as on December 30, 2016 - - -
million @ 1 GBP = ` 91.0885 (Previous year GBP Nil)
The disclosures regarding details of specified bank notes held and transacted
Payable US $ 1.5 million @ closing of 1 USD = ` 65.1750, ` 99.3 million during November 8, 2016 to December 30, 2016 has not been made since
(Previous year March 31, 2017:US $ 0.0 million @ closing of 1 the requirement does not pertain to financial year ended March 31, 2018.
USD = ` 64.85, ` 0.0 million), HK $ Nil (Previous year March 31, Corresponding amounts as appearing in the audited standalone financial
2017: HK $ 0.0 million @ closing of 1 HK $ = ` 8.35, ` 0.0 million) statements for the period ended March 31, 2017 have been disclosed.
` 0.0 million indicates values are lower than ` 0.1 million, where applicable
` 0.0 million indicates values are lower than ` 1 million, where applicable
37- A Lease
38 Statement of corporate social responsibility expenditure
The Company’s significant leasing arrangements are in respect of operating
leases for premises which are renewable on mutual consent at agreed (` in million)
terms. Certain agreements provide for cancellation by either party or certain Year ended Year ended
agreements contains clause for escalation and renewal of agreements. The Particulars
March 31, 2018 March 31, 2017
non-cancellable operating lease agreements are ranging for a period 36 to
60 months. There are sub-lease agreements which are renewable on mutual a Gross amount required to be spent
consent at agreed terms. The aggregate lease rentals payable are charged to the during the year 91.5 65.4
statement of profit and loss. The Company has also obtained office equipment b Amount spent during the year on
and furniture and fixtures on operating lease. The lease period for these also
(i) Construction/acquisition of any
range from 36 months to 60 months.
asset - -
The following are the details of operating leases for the periods indicated. (ii) On purposes other than (i)
above - in cash 91.6 65.4
(` in million)
Particulars Year ended Year ended Out of the above, contribution made to
March 31, 2018 March 31, 2017 related party is as below
A) Lease payments recognized in the ICICI Foundation for Inclusive Growth 86.8 49.0
Profit and Loss Account during the
year 39 Segment reporting
- Minimum lease payments 568.3 623.0  The Company is preparing consolidated financial statements and hence in
- Contingent rent accordance with Accounting Standard 17 – Segment Reporting, segment
Sub-lease payments received/receivable 31.2 25.0 information is presented in the consolidated financial statements.
recognized in the statement of profit and
loss during the period 40 The Company has regrouped / reclassified previous year figures
wherever necessary.

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

ICAI Firm Registration No.:101248W/W-100022 Chairperson Director
Chartered Accountants DIN - 00043617 DIN - 06559989

VENKATARAMANAN VISHWANATH SHILPA KUMAR AJAY SARAF

Partner Managing Director & CEO Executive Director
Membership No.: 113156 DIN - 02404667 DIN - 00074885

RAJU NANWANI HARVINDER JASPAL

Mumbai, April 14, 2018 Company Secretary Chief Financial Officer

47
 cash flow statement
for the year ended March 31, 2018

(` in million)

For the year ended For the year ended

March 31, 2018 March 31, 2017

A Cash flow from operating activities

Profit before tax 8,504.2 5,209.8
Add /(less): Adjustments
- (Profit) / loss on sale of fixed assets 16.8 2.5
- Depreciation and amortisation 152.6 154.6
- (Profit)/loss on sale of long term investment (net) (3.5) -
- Interest expense 483.3 276.7
- Provision for diminution in value of non-current investment - 6.7
- Unrealised loss on foreign currency transaction - (0.2)
Operating profit before working capital changes 9,153.4 5,650.1
Adjustments for changes in working capital
a) (Increase) / decrease in current assets (8,296.1) (4,851.7)
b) (Increase) / decrease in long term loans and advances 18.3 (20.2)
c) (Increase) / decrease in other non-current assets 777.3 (541.3)
d) Increase / (decrease) in non current liabilities 220.8 278.5
e) Increase / (decrease) in trade payables 1,451.2 2,761.6
f) Increase / (decrease) in other current liabilities 500.6 320.9
g) Increase / (decrease) in short term provisions 56.1 9.1
(5,271.8) (2,043.1)
Cash generated from operations 3,881.6 3,607.0
Payment of taxes (net) (3,220.8) (1,985.0)
Net cash (used in) / generated from operating activities (A) 660.8 1,622.0
B Cash flow from investing activities
- Purchase of investments (1.2) (15.7)
- Proceeds from sale/maturity of investments 7.0 -
- Purchase of fixed assets (223.1) (159.3)
- Proceeds from sale of fixed assets 7.4 5.5
Net cash (used in) / generated from investing activities (B) (209.9) (169.5)
C Cash flow from financing activities
- Increase/ (decrease) in short-term borrowings (net) 2,753.5 2,228.1
- Interest paid on borrowings (465.9) (279.3)
- Dividend paid (1,771.8) (2,050.3)
- Dividend distribution tax paid (452.3) (439.9)
Net cash (used in) / generated from financing activities (C) 63.5 (541.4)
Net change in cash and cash equivalents (A+B+C) 514.4 911.1
Cash and cash equivalents at the beginning of the year 1,052.6 141.5
Cash and cash equivalents at the end of the year 1,567.0 1,052.6

Components of cash and cash equivalents

Cash on hand * 0.0 0.0
Cheques on hand - 10.2
In Current account with banks
- In India with scheduled banks 1,302.6 1,010.1
- Outside India 14.4 32.3
- Fixed deposit with maturity less than 3 months 250.0 -
Total cash and cash equivalents (Note 19) 1,567.0 1,052.6
Cash and cash equivalents at the end of the year excludes:
- Fixed deposits under lien ` 13,235.8 million (March 31, 2017 ` 8,324.2 million) and
- Fixed deposits having original maturity more than 3 months ` Nil (March 31, 2017 ` 95.5 million).
` 0.0 million indicates values are lower than ` 0.1 million, where applicable
Note : The above cash flow statement has been prepared under the Indirect method as set out in Accounting Standard - 3 on cash flow statements.

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

Chartered Accountants Chairperson Director
ICAI Firm Registration No.:101248W/W-100022 DIN - 00043617 DIN - 06559989

VENKATARAMANAN VISHWANATH SHILPA KUMAR AJAY SARAF

Partner Managing Director & CEO Executive Director
Membership No.: 113156 DIN - 02404667 DIN - 00074885

RAJU NANWANI HARVINDER JASPAL

Mumbai, April 14, 2018 Company Secretary Chief Financial Officer

48
 ICICI SECURITIES HOLDINGS, INC.
18th ANNUAL REPORT AND ACCOUNTS 2017-2018

Directors Auditors Registered Office

Sriram H. Iyer (Chairman) B S R & Co. LLP 251 Little Falls Drive
Warren Law Chartered Accountants Wilmington, DE 19808
Bishen Pertab United States of America

directors’ report
to the members,

Your Directors have pleasure in presenting the 18th Annual Report of ICICI Securities
Holdings, Inc. with the audited statement of accounts for the financial year ended
March 31, 2018.
OPERATIONAL REVIEW
During fiscal 2018, the Company maintained its registration with the Division of
Corporations, Secretary of State, State of Delaware in accordance with the provisions
of the General Corporation Law of the State of Delaware. The Company is not
currently registered with any regulatory authority, has no full–time employees and
does not carry out any business activities in the U.S. The Company will continue to
grow its wholly-owned subsidiary, viz. ICICI Securities, Inc., in its efforts to increase
business from the institutional segment in US, Canada and Singapore.
FINANCIAL HIGHLIGHTS
(` in ’000s)
Fiscal 2017 Fiscal 2018
Gross income 403 - The Directors of the Company confirm:
Profit /(Loss) before tax 273 (80)
Provision for tax 281 (172)
Profit /(Loss) after tax (8) 92
SUBSIDIARY COMPANY
The Company’s wholly–owned subsidiary, ICICI Securities, Inc., is registered with
the United States Securities and Exchange Commission (“SEC”) and is a member
of the Financial Industry Regulatory Authority (“FINRA”). ICICI Securities, Inc. has its
main office in New York, USA and branch office in Singapore, which holds a Capital
Market Services license granted by the Monetary Authority of Singapore (“MAS”) for
the purpose of Dealing in Securities. The Subsidiary operates under the International
Dealer registration exemption from the Canadian Securities Administrators (“CSA”)
that enables it to expand its reach to institutional investors in the provinces of
British Columbia, Ontario and Quebec. ICICI Securities, Inc. refers major institutional
investors in the U.S., Canada and Singapore, who propose to deal in securities listed
on the Indian Stock Exchanges, to its foreign affiliates viz., ICICI Securities Limited
and ICICI Securities Primary Dealership Limited.
During fiscal 2018, the subsidiary strengthened its positioning among its U.S.,
Canada and Singapore institutional investors. ICICI Securities, Inc., in association
with ICICI Securities Limited, conducted several investors’ conferences in the U.S.
and Singapore in fiscal 2018, providing investors with an opportunity for interaction
with policy makers and corporate leaders. These activities added value to the
decision making process of its clients by providing differentiated research, access to
corporate management and experts from various fields. It also helps it to penetrate
new clients, as well as strengthen its foothold among existing clients, resulting in
higher broking income.
SHARE CAPITAL
During the year, there was no change in the paid-up equity share capital of the
Company.
DIRECTORS
As at the date of this report, following are the Directors of the Company:
Sriram H. Iyer (Chairman)
Warren Law
Bishen Pertab
AUDITORS
To re-appoint B S R & Co. LLP (Registration number 101248W/W-100022, Chartered
Accountants as Auditors of the Company for FY2019 as per Indian GAAP and for
the purpose of complying with the provisions of the Indian Companies Act, 2013,
as the accounts of the Company are consolidated with the accounts of the holding
company viz. ICICI Securities Limited.
DIRECTORS’ RESPONSIBILITY STATEMENT
i. that the applicable accounting standards have been followed in the preparation
of the annual accounts and that there are no material departures;
ii. that such accounting policies have been selected and applied consistently and
judgments and estimates made are reasonable and prudent, so as to give a true
and fair view of the state of affairs of the Company at March 31, 2018 and of the
loss of the Company for the year ended on that date;
iii. that proper and sufficient care has been taken for the maintenance of adequate
accounting records to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities;
iv. that the annual accounts have been prepared on a ‘going concern’ basis; and
that proper systems have been devised to ensure compliance with the
v. 
provisions of all applicable laws and that such systems are adequate and
operating effectively.
ACKNOWLEDGEMENTS
The Directors would like to thank the statutory authorities and the Company’s
bankers for their continued support.
The Directors express their gratitude for the unstinted support and guidance
received from the Company’s shareholders, ICICI Securities Limited and other group
companies.
For and on behalf of the Board
Sriram H. Iyer
April 12, 2018 Chairman

49
 independent auditors’ report
to the Members of ICICI Securities Holdings Inc.
Report on the financial statements
We have audited the accompanying financial statements of ICICI Securities Holdings
Inc. (the ‘Company’) which comprise the balance sheet as at 31 March 2018, the
statement of profit and loss, and the cash flow statement for the year then ended,
and a summary of significant accounting policies and other explanatory information.
Management responsibility for the financial statements
The Company’s Board of Directors is responsible for the preparation of these
financial statements that give a true and fair view of the state of affairs, profit /
loss and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under
Section 133 of the Companies Act, 2013 (the ‘Act’).
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards
on Auditing specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to
50
the Company’s preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting and the operating
effectiveness of the such control.
An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by Company’s Directors,
as well as evaluating the overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
the auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the
audit evidence obtained up to the date of the auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of
the Company as at 31 March 2018, and its profits and its cash flows for the year
ended on that date.
Other matter
The comparative financial information of the Company for the year ended 31 March
2017 as included in these financial statements have been audited by the predecessor
auditor who had audited the financial statements for the year ended 31 March 2017.
The report of the predecessor auditor on the comparative financial information
dated 20 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
For For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Place: Mumbai Partner
Dated: April 12, 2018 Membership Number: 113156
balance sheet profit and loss account
at March 31, 2018 for the year ended March 31, 2018

(` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s)

Note As at As at As at As at Note For the For the For the For the
March March March March year ended year ended year ended year ended
31, 2018 31, 2017 31, 2018 31, 2017 March 31, March 31, March 31, March 31,
I. EQUITY AND LIABILITIES 2018 2017 2018 2017

1 Shareholders’ funds I. Revenue from operations

(a) Share capital 3 728,206 728,206 16,640 16,640 Other income - 403 - 6

(b) Reserves & surplus 4 (600,997) (601,254) (14,624) (14,626) II. Total Revenue - 403 - 6
127,209 126,952 2,016 2,014 III. Expenses:
2 Current liabilities
Finance costs 9 80 130 1 2
Other current liabilities 5 144 314 2 5
80 130 1 2
127,353 127,266 2,018 2,019
IV Profit/(Loss) before tax (80) 273 (1) 4
II. ASSETS (II -III)
1 Non-current assets Tax expenses:
(a) Non-current 6 94,498 94,498 1,514 1,514
Current tax 164 281 3 4
investments
(b) Long-term loans and 7 29,598 29,716 454 458 Tax reversal of prior year (336) - (5) -
advances
(172) 281 (3) 4
124,096 124,214 1,968 1,972
VI Profit/(Loss) for the year 92 (8) 2 (0)
2 Current assets (IV - V)
Cash and bank balances 8 3,257 3,052 50 47 Earnings per share (basic 12 55.35 (5.10) 0.99 (0.08)
127,353 127,266 2,018 2,019 & diluted)

Summary of significant 2 Summary of significant 2

accounting policies accounting policies

III. The accompanying notes are an integral part of the financial statements.
As per our report of even date For and on behalf of the Board of Directors
For B S R & Co. LLP SRIRAM IYER
Chartered Accountants Chairman
ICAI Firm Registration No.:101248W/W-100022

VENKATARAMANAN VISHWANATH BISHEN PERTAB WARREN LAW

Partner Director Director
Membership No.: 113156

Mumbai, April 12, 2018 Canada, April 11, 2018

51
 notes
forming part of the financial statements
1 Corporate Information
ICICI Securities Holdings, Inc. (“the Company”), a wholly owned subsidiary
of ICICI Securities Ltd., was incorporated in the United States in 2001. In
order to assist corporate clients and institutional investors with investment
banking services, the Company set up a wholly owned subsidiary in the
United States viz., ICICI Securities, Inc. This wholly owned subsidiary, being
a registered broker dealer with the National Association of Securities Dealers
Inc., is engaged in a variety of securities transactions in the US market.
2 SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements
to comply in all material respects with the accounting standards notified
under section 133 of the Companies Act 2013, read together with
paragraph 7 of the Companies (Accounts) Rules 2014 and Companies
(Accounting Standards) Amendment Rules, 2016. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
All assets and liabilities have been classified as current or non-current
as per the Company’s normal operating cycle and other criteria set out
in the Schedule III to the Companies Act, 2013. Based on the nature of
the services and the time between the provision of services and their
realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and non
current classification of assets and liabilities.
b) Use of estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the financial
statements and the reported income and expenses during the reporting
period. Management believes that the estimates used in the preparation
of the financial statements are prudent and reasonable. Actual results
could differ from these estimates.
c) Revenue recognition
Revenue from issue management, loan syndication and financial
advisory services is recognized based on the stage of completion of
assignments and terms of agreement with the client. Revenue from
issue management, loan syndication and financial advisory services is
recognized based on the stage of completion of assignments and terms
of agreement with the client.
d) Investments
Investments that are acquired with the intention of holding for not more
than one year from the date on which such investments are made, are
classified as current investments. All other investments are classified
as long-term investments. On initial recognition, all investments are
measured at cost inclusive of direct acquisition costs, if any. Current
investments are carried at cost arrived at on FIFO basis or market value,
determined on an individual investment basis, whichever is lower.
Long term investments are carried at acquisition cost. Any decline in
the value of investments, which is other than temporary is reduced from
its acquisition cost and provided for in the statement of profit and loss.
A decline is considered as other than temporary after considering the
investee Company’s market value, assets, results and the expected cash
flows from the investment and restrictions, if any, on distribution or sale
of the investee Company.
On disposal of an investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of
profit and loss.
52
Continued
e) Income taxes
Current income- tax is measured at the amount expected to be paid to
the tax authorities in accordance with the local tax rates of the United
States of America. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income
for the year and reversal of timing differences of earlier years. Deferred
tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognised and reassessed at each reporting
date, based upon management’s judgment as to whether their
realization is considered as reasonably certain. Deferred tax assets are
recognised on carry forward of unabsorbed depreciation, tax losses and
carry forward capital losses, only if there is virtual certainty supported
by convincing evidence that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Unrecognised deferred tax assets of earlier years are re-assessed and
recognised to the extent that it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized. As there is no virtual certainty of future taxable
profits, deferred tax assets is not recognized.
f) Earnings per share (“EPS”)
Basic earnings per share are calculated by dividing the net profit or loss
for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
The diluted earnings per share is computed using the weighted average
number of equity shares and dilutive potential equity shares outstanding
during the year.
g) Provisions
Provision is recognised when an enterprise has a present obligation
as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. Provisions are determined based on
management estimates required to settle the obligation at the balance
sheet date, supplemented by experience of similar transactions. These
are reviewed at each balance sheet dates and adjusted to reflect the
current management estimates.
h) Contingent liabilities and assets
Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that
an outflow of resources will be required to settle or a reliable estimate
of the amount cannot be made, is termed as a contingent liability. The
existence of a contingent liability is disclosed in the notes to the financial
statements.
Contingent assets are neither recognised nor disclosed.
i) Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement include
cash in hand, balances with the banks and short term investments with
an original maturity of three months or less.
j) Segment Reporting
The Company does not have any reportable segment.
notes
forming part of the financial statements Continued

(` in 000’s) (US$ in 000’s)

As at As at As at As at
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
3 SHARE CAPITAL
Authorised:
3,000 Common Stock of no par value
(As at March 31, 2017 3,000 Common Stock of no par value )
Issued subscribed & Paid Up:
Common stock no par value; 1,664 shares 728,206 728,206 16,640 16,640
(As at March 31, 2017 1,664 Common stock of no par value )
(All the above 1,664 (March 2017: 1,664)
common stock of no par value are held by holding company
ICICI Securities Ltd.)
Reconciliation of the common stock at the beginning and at the end of the reporting year
Common stock As at March 31, 2018 As at March 31, 2017
Nos. ` Nos. `
At the beginning of the year 1,664 728,206 1,664 728,206
Issued during the year - - - -
Outstanding at the end of the year 1,664 728,206 1,664 728,206
Terms /rights attached to common stock
The Company has only one class of common stock having no par value. Each holder of common
stock is entitled to one vote

4 RESERVES & SURPLUS

(` in 000’s) (US$ in 000’s)
As at As at As at As at
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Profit and loss account debit balance
Opening balance (624,258) (624,250) (14,626) (14,626)
Add: Profit/(loss) during the year 92 (8) 2 (0)
Closing Balance (624,166) (624,258) (14,624) (14,626)
Translation reserve
Opening balance 23,004 23,708 - -
Add: Additions during the year 165 (704) - -
Closing Balance 23,169 23,004 - -
TOTAL (600,997) (601,254) (14,624) (14,626)

5 OTHER CURRENT LIABILITIES

Taxes payable 144 314 2 5
TOTAL 144 314 2 5

6 NON CURRENT INVESTMENT

Non-current investments consist of the following
Name of the company Quantity As at As at As at As at
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Trade Investments
In common stock (carried at cost)
Subsidiary Company:
ICICI Securities Inc.(Unquoted)* 1,298 (1,298) 571,667 571,667 12,980 12,980
* No par value
Less : Provision for Dimunition (477,169) (477,169) (11,466) (11,466)
TOTAL 94,498 94,498 1,514 1,514

7. LONG TERM LOANS AND ADVANCES

(Unsecured, considered good unless otherwise stated)
Due from Subsidiary 29,598 29,716 454 458
TOTAL 29,598 29,716 454 458

8. CASH AND BANK BALANCES

Cash and cash equivalents
Balances with banks 3,257 3,052 50 47
TOTAL 3,257 3,052 50 47

53
 notes
forming part of the financial statements Continued

(` in 000’s) (US$ in 000’s)

As at March As at March As at March As at March

31, 2018 31, 2017 31, 2018 31, 2017
9. Finance Cost
Bank charges 80 130 1 2
TOTAL 80 130 1 2

10.
Deferred tax
Deferred tax asset resulting from accumulated losses have not been accounted in the absence of virtual certainty of availability of sufficient future taxable income.

11.
Related Party Disclosures
As per accounting standard on related party disclosures (AS18), the names of the related parties of the Company are as follows:
A. Related party where control exists irrespective whether transactions have occurred or not
Ultimate Holding Company: ICICI Bank Limited
Holding Company: ICICI Securities Limited
Subsidiary Company: ICICI Securities Inc.

B Key Management Personnel
a) Sriram Iyer
b) Warren law
c) Bishen Pertab

The following transactions were carried out with the related parties in the ordinary course of business.
Subsidiary Company Holding company
Nature of Transaction (` in (US$ in (` in (US$ in
000’s) 000’s) 000’s) 000’s)
Investment
ICICI Securities Inc. (net of provision) 94,498 1,514
(94,498) (1,514)
Receivables 29,589 454 (458)
(29,716) (454)
728,206 16,640
Share Capital
(728,206) (16,640)

Amounts in parenthesis represent previous year figure)

Key Management Personnel
There was no payment made to the key management personnel during the current year and previous year.

12. Earnings per equity share (EPS)

(` in 000’s) (US$ in 000’s)
Year ended Year ended
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Basic & Diluted
Weighted average no. of equity shares outstanding 1,664 1,664 1,664 1,664
Net profit / (loss) 92 (8) 2 (0)
Basic earnings per share (`)/ (US$) 55.35 (5.10) 0.99 (0.08)

The Company is not registered with any regulatory authority and did not carry out any business.
13.

14.
Conversion to Indian Rupees
All income and expense items are converted at the average rate of exchange applicable for the year. All assets (except Investments) and liabilities (except Share Capital)
are translated at the closing rate as on the Balance Sheet date.
The Equity Share Capital and Investments in subsidiary is carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference
on account of translation at the year-end are transferred to Translation Reserve account and the said account is being treated as “Reserves and Surplus.
Amounts in US$ (USD) given in financial statements are stated only for the purpose of conversion.

15. Figures for the previous year have been have been regrouped/reclassified wherever necessary.

As per our report of even date Signature to Note 1 to 15

For and on behalf of the Board of Directors

For B S R & Co. LLP SRIRAM IYER

Chartered Accountants Chairman
ICAI Firm Registration No.:101248W/W-100022

VENKATARAMANAN VISHWANATH BISHEN PERTAB WARREN LAW

Partner Director Director
Membership No.: 113156

Mumbai, April 12, 2018 Canada, April 11, 2018

54
cash flow statement
for the year ended March 31, 2018

(` in 000’s) (US$ in 000’s)

For the year For the year For the year For the year
ended March ended March ended March ended March
31, 2018 31, 2017 31, 2018 31, 2017

A Cash flow from operating activities

Profit /(Loss) before tax (80) 273 (1) 4

- Exchange adjustments 166 (703) - -
Operating profit /(loss)before changes in operating assets and liabilities 86 (430) (1) 4

Adjustments for net change in operating assets and liabilities

- Loans and advances relating to operations 118 372 4 (4)
Cash generated from operations 204 (58) 3 (0)
Payment of taxes 1 (288) 0 (4)

Net cash generated from/ used in operating activities 205 (347) 3 (4)

B Cash flow generated from investment activities - - - -

C Cash flow generated from financing activities - - - -

Net change in cash and cash equivalents (A+B+C) 205 (347) 3 (4)
Cash and cash equivalents at the beginning of the year 3,052 3,399 47 51
Cash and cash equivalents at the end of the year 3,257 3,052 50 47

Components of cash and cash equivalents

In current account with banks 3,257 3,052 50 47

Note : The above cash flow statement has been prepared under the Indirect method as set out in Accounting Standard - 3 on cash flow statements.

This is the Cash Flow Statement referred to in our report of even date.
As per our report of even date For and on behalf of the Board of Directors
For B S R & Co. LLP SRIRAM IYER
Chartered Accountants Chairman
ICAI Firm Registration No.:101248W/W-100022

VENKATARAMANAN VISHWANATH BISHEN PERTAB WARREN LAW

Partner Director Director
Membership No.: 113156

Mumbai, April 12, 2018 Canada, April 11, 2018

55
 ICICI SECURITIES, INC.
18TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Auditors
Mr. Ripujit Chaudhuri (Chairman of the Board) B S R & Co. LLP
Mr. Jaideep Goswami Chartered Accountants
Mr. Robert Ng
Mr. Bishen Pertab
directors’ report
to the members,
Your Directors have pleasure in presenting the 18th Annual Report of ICICI Securities,
Inc. with the audited statement of accounts for the year ended March 31, 2018.
OPERATIONAL REVIEW
The Company is registered with the Securities and Exchange Commission (“SEC”)
and is a member of the Financial Industry Regulatory Authority (“FINRA”). It has
its main office in New York, USA and branch office in Singapore, which holds a
Capital Market Services license granted by the Monetary Authority of Singapore
(“MAS”) for the purpose of Dealing in Securities. ICICI Securities, Inc. also operates
under the International Dealer registration exemption from the Canadian Securities
Administrators (“CSA”) that enables it to expand its reach to institutional investors in
the provinces of British Columbia, Ontario and Quebec. ICICI Securities, Inc. refers
major institutional investors in the U.S., Canada and Singapore, who propose to deal
in securities listed on the Indian Stock Exchanges, to its foreign affiliates viz., ICICI
Securities Limited and ICICI Securities Primary Dealership Limited.
During fiscal 2018, the Company strengthened its positioning among its U.S.,
Canada and Singapore institutional investors. The Company, in association with
ICICI Securities Limited, conducted several investors’ conferences in the U.S. and
Singapore in fiscal 2018, providing investors with an opportunity for interaction
with policy makers and corporate leaders. These activities added value to the
decision making process of its clients by providing differentiated research, access to
corporate management and experts from various fields. It also helps it to penetrate
new clients, as well as strengthen its foothold among existing clients, resulting in
higher broking income.
FINANCIAL HIGHLIGHTS
(` in ’000s)
Fiscal 2017 Fiscal 2018
Gross income 164,360 252,986
Profit/(loss) Loss before tax 10,673 44,606
Provision for tax 504 1,013
Profit /(Loss) after tax 10,169 43,593
OUTLOOK FOR INDIAN EQUITIES
Fiscal year 2018 ended in an environment of volatility in global stocks emanating
from the fear of faster than expected rate hikes and tighter liquidity conditions in the
U.S. which is impacting Indian capital markets. Global volatility in capital markets is
being further exacerbated by fear of a trade war getting initiated between the U.S.
and its large trading partners. Bond yields have been trending high globally on the
fear of rising inflation and remain a key risk to global capital markets.
India domestic growth outlook is improving with investment cycle showing signs
of picking up as evidenced by 12% growth in Gross Fixed Capital Formation in the
third quarter GDP for fiscal 2018. The pragmatic FY19 Union Budget has set the
tone for higher focus on infrastructure and rural growth, without breaching the fiscal
discipline. Barring concerns over MSP hike and oil prices, inflation is poised to be on
benign trajectory aided by expectations of normal monsoon. A marked recovery was
seen in corporate earnings growth from the 2nd quarter of fiscal 2018 which should
continue in fiscal 2019 and support positive outlook for equity markets. Foreign
portfolio flows will improve and domestic institutions such as mutual funds and
insurance firms will continue to attract household savings in fiscal 2019 as broader
economic growth picks up going ahead as the positive effect of large structural
reforms undertaken by the government in the last two years show results and a
cyclical recovery in global growth.
SHARE CAPITAL
During the year, there was no change in the paid-up equity share capital of the
Company.
56
Registered Office
251 Little Falls Drive
Wilmington, DE 19808
United States of America
DIRECTORS
As at the date of this report, following are the Directors of the Company:
Mr. Ripujit Chaudhuri (Chairman of the Board)
Mr. Jaideep Goswami
Mr. Robert Ng
Mr. Bishen Pertab
During fiscal 2018, the Board approved the appointment of Mr. Ripujit Chaudhuri
as Director on the Board of Directors of the Company. The Board also accepted
the resignation of Mr. Subir Saha as Director of the Company. The appointment
and resignation were effective October 9, 2017. The Board places on its record, its
appreciation for the valuable services and leadership rendered by Mr. Subir Saha
during his tenure as Director of the Company.
AUDITORS
The Board, at its Meeting held on April 9, 2018, proposed the appointment of B S R &
Co. LLP (Registration number 101248W/W-100022) as Auditors to audit the accounts
of the Company, as per Indian GAAP, for the year ended March 31, 2019. You are
requested to consider the appointment of the aforementioned Auditors.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors of the Company confirm:
i. that the applicable accounting standards have been followed in the preparation
of the annual accounts and that there are no material departures;
ii. that such accounting policies have been selected and applied consistently and
judgments and estimates made are reasonable and prudent, so as to give a true
and fair view of the state of affairs of the Company at March 31, 2018 and of the
profit of the Company for the year ended on that date;
iii. that proper and sufficient care has been taken for the maintenance of adequate
accounting records to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities;
iv. that the annual accounts have been prepared on a ‘going concern’ basis; and
v.  that proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and
operating effectively.
ACKNOWLEDGEMENTS
The Directors thank the Company’s clients for the confidence reposed in the
Company, which has enabled the Company to successfully deliver well-structured
solutions through timely execution.
The Directors also thank the statutory authorities and the Company’s bankers for
their continued support.
The Directors express their gratitude for the unstinted support and guidance
received from the Company’s shareholders, ICICI Securities Holdings, Inc. and other
group companies.
The Directors also express their sincere thanks and appreciation to all their employees
for their commendable teamwork, professionalism and contribution during the year.
For and on behalf of the Board
Ripujit Chaudhuri
April 12, 2018 Chairman
independent auditors’ report
To, The members of ICICI Securities Inc.
Report on the financial statements
We have audited the accompanying financial statements of ICICI Securities Inc. (the
‘Company’) which comprise the balance sheet as at 31 March 2018, the statement of
profit and loss, and the cash flow statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management responsibility for the financial statements
The Company’s Board of Directors is responsible for the preparation of these
financial statements that give a true and fair view of the state of affairs, profit /
loss and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under
Section 133 of the Companies Act, 2013 (the ‘Act’).
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards
on Auditing specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant
to the Company’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial reporting and
the operating effectiveness of the such control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the
accounting estimates made by Company’s Directors, as well as evaluating the
overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
the auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the
audit evidence obtained up to the date of the auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of
the Company as at 31 March 2018, and its profits and its cash flows for the year
ended on that date.
Other matter
The comparative financial information of the Company for the year ended 31 March
2017 as included in these financial statements have been audited by the predecessor
auditor who had audited the financial statements for the year ended 31 March 2017.
The report of the predecessor auditor on the comparative financial information
dated 20 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
For For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Place: Mumbai Partner
Dated: April 12, 2018 Membership Number: 113156
57
balance sheet profit and loss account
at March 31, 2018 for the year ended March 31, 2018

(` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s)

As at As at As at As at For the year For the year For the year For the year
March 31, March 31, March March 31, ended March ended March ended March ended March
Note 2018 2017 31, 2018 2017 Note 31, 2018 31,2017 31, 2018 31,2017
I EQUITY AND LIABILITIES Revenue from operations 12
1 Shareholders' funds (a) Brokerage and
(a) Share capital 3 571,667 571,667 12,980 12,980 commission 214,010 161,004 3,320 2,405
(b) Reserves and surplus 4 (390,437) (435,753) (10,209) (10,885) (b) Income from
181,230 135,914 2,771 2,095 services 36,799 3,356 571 45
Other Income 13 2,177 - 34 -
2 Non-current liabilities I Total revenue 252,986 164,360 3,925 2,450
Other long term liabilities 5 79,589 29,716 1,230 458
II Expenses:
3 Current liabilities (a) Employee benefits
Other current liabilities 6 39,905 42,436 613 655 expense 14 156,219 110,166 2,423 1,642

300,724 208,066 4,614 3,208 (b) Operating

expenses 15 12,435 1,204 193 18
(c) Depreciation 7 382 169 6 3
II. ASSETS
(d) Finance costs 16 3,645 4,333 57 65
1 Non-current assets
(a) Fixed assets (e) Other expenses 17 35,699 37,815 554 564

Property, plant and Total expenses 208,380 153,687 3,233 2,292

7
equipment 384 130 6 2
(b) Long term loans and III Profit before tax ( I - II) 44,606 10,673 692 158
8
advances 4,971 4,647 76 72
5,355 4,777 82 74
IV Tax expense: 1,013 504 16 8

2 Current assets
V Profit for the year
(a) Trade receivables 9 90,598 17,476 1,390 269
(III - IV) 43,593 10,169 676 150
(b) Cash and bank
10 200,584 150,671 3,078 2,323
balances
(c) Short-term loans and VI Earnings per share 20 33,584.49 7,834.00 520.95 115.56
11 4,187 35,142 64 542 (Basic and Diluted)
advances
295,369 203,289 4,532 3,134
300,724 208,066 4,614 3,208 Summary of significant 2
accounting policies

Summary of significant
2
accounting policies

The accompanying notes are an integral part of the financial statements. The accompanying notes are an integral part of the financial statements.

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP RIPUJIT CHAUDHURI

Chartered Accountants Chairman
ICAI Firm Registration No.:101248W/W-100022

VENKATARAMANAN VISHWANATH BISHEN PERTAB ROBERT NG

Partner President Director
Membership No.: 113156

Mumbai, April 12, 2018 Singapore, April 11, 2018

58
notes
forming part of the financial statements for the year ended March 31, 2018
1 Corporate Information
ICICI Securities, Inc. (the “”Company”), a wholly owned subsidiary of ICICI
Securities Holdings, Inc., is incorporated in the United States in June 2000.
The Company is a registered broker dealer with the Securities and Exchange
Commission (“SEC”) and member of the Financial Industry Regulatory Authority
(“FINRA”). The Firm has a branch office in Singapore that is registered with the
Monetary Authority of Singapore (the “MAS”) where it holds the Capital Markets
Services (“CMS”) license for Dealing in Securities in Singapore. The Company
is also registered as an International Dealer in Canada in the provinces of British
Columbia, Ontario, and Quebec.
2 SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
 The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India (Indian
GAAP). The Company has prepared these financial statements to comply in
all material respects with the accounting standards notified under section
133 of the Companies Act 2013, read together with paragraph 7 of the
Companies (Accounts) Rules 2014 and Companies (Accounting Standards)
Amendment Rules, 2016. The financial statements have been prepared on
an accrual basis and under the historical cost convention.
All assets and liabilities have been classified as current or non-current
as per the Company’s normal operating cycle and other criteria set out
in the Schedule III to the Companies Act, 2013. Based on the nature of
the services and the time between the provision of services and their
realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities.
b) Use of estimates
Preparation of the financial statements in conformity with the generally
accepted accounting principles requires the management to make
estimates and assumptions considered in the reported amounts of
assets and liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable. Actual
results could differ from these estimates.
c) Revenue recognition
Revenue from issue management, loan syndication, brokage commission
and financial advisory services is recognized based on the stage of
completion of assignments and terms of agreement with the client.
d) Property, plant and equipment
Fixed assets are stated at historical cost less accumulated depreciation and
impairment loss, if any. Cost includes freight, duties, taxes and incidental
expenses related to the acquisition and installation of the asset.
Depreciation on fixed assets is provided on straight line method. Such
rates are fixed after considering applicable laws in the United States of
America and management estimation of the useful life of the asset.
The rates of depreciation for fixed assets are given below:-
Asset Estimated life
Tangible
Plant and machinery like air conditioners, 3 Years
photo-copying machines, etc.
Computers 3 Years
Furniture and fixtures 7 years
e) Income taxes
Current income- tax is measured at the amount expected to be paid to the
tax authorities in accordance with the local tax rates of the United States of
America. Deferred income taxes reflects the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is measured
based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date.
Deferred tax assets are recognised and reassessed at each reporting date,
based upon management’s judgment as to whether their realization is
considered as reasonably certain. Deferred tax assets are recognised on
carry forward of unabsorbed depreciation, tax losses and carry forward
capital losses, only if there is virtual certainty supported by convincing
evidence that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
Unrecognised deferred tax assets of earlier years are re-assessed and
recognised to the extent that it has become reasonably certain that future
taxable income will be available against which such deferred tax assets can
be realized. As there is no virtual certainty of future taxable profits, deferred
tax assets is not recognized.
f) Earnings per share (“EPS”)
Basic earnings per share are calculated by dividing the net profit or loss
for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
The diluted earnings per share is computed using the weighted average
number of equity shares and dilutive potential equity shares outstanding
during the year.
g) Provisions
Provision is recognised when an enterprise has a present obligation as a
result of a past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate
can be made. Provisions are determined based on management estimates
required to settle the obligation at the balance sheet date, supplemented
by experience of similar transactions. These are reviewed at each balance
sheet dates and adjusted to reflect the current management estimates.
h) Contingent liabilities and assets
 Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount
cannot be made, is termed as a contingent liability. The existence of a
contingent liability is disclosed in the notes to the financial statements.
Contingent assets are neither recognised nor disclosed.
i) Lease transactions
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the leased term are classified as operating leases.
Operating lease payments are recognised as an expense in the profit and
loss account on a straight-line basis over the lease term.
j) Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement include
cash in hand, balances with the banks and short term investments with an
original maturity of three months or less.
k) Segment Reporting
The Company does not have any reportable segment.
59
 notes
forming part of the financial statements for the year ended March 31, 2018 Continued

(` in 000’s) (US$ in 000’s)

As at As at March As at As at March
March 31, 2018 31, 2017 March 31, 2018 31, 2017

3. SHARE CAPITAL
Authorised:
1,500 Common stock of no par value
(As at March 31, 2017 1,500 Common stock of no par value)
Issued subscribed & paid up:
1,298 Common stock
(As at March 31, 2017 1,298 Common stock of no par value)
(All Common stock mentioned above are held by holding company
ICICI Securities Holding Inc.)
Total issued, subscribed and fully paid-up share capital 571,667 571,667 12,980 12,980

Reconciliation of the common stock at the beginning and at the end of the reporting year
Common stock As at March 31, 2018 As at March 31, 2017
Nos. Rs. Nos. Rs.
At the beginning of the year 1,298 571,667 1,298 571,667
Issued during the year - - - -
Outstanding at the end of the year 1,298 571,667 1,298 571,667

Terms /rights attached to common stock

The Company has only one class of common stock having no par value. Each holder of common stock is entitled to one vote

4. RESERVES & SURPLUS

Reserves and surplus consist of the following:
Profit and loss account debit balance:
Opening balance (460,204) (470,373) (10,930) (11,080)
Add: Profit during the year 43,593 10,169 676 150
Closing Balance (416,611) (460,204) (10,254) (10,930)
Translation reserve:
Opening balance 24,451 27,547 45 45
Add: Additions during the year 1,723 (3,096) - -
Closing balance 26,174 24,451 45 45
TOTAL (390,437) (435,753) (10,209) (10,885)

5. OTHER LONG TERM LIABILITIES

Other long term liabilities consist of the following:
Due to Parent 29,598 29,716 454 458
other liabilities 49,991 - 776 -
79,589 29,716 1,230 458

6. OTHER CURRENT LIABILITIES

Other current liabilities consist of the following:
Other liabilities 38,582 41,628 593 642
Provision for taxes 1,323 808 20 13
TOTAL 39,905 42,436 613 655

7. FIXED ASSETS

(` in 000’s) (US$ in 000’s)

GROSS BLOCK (at Cost) ACCUMULATED DEP NET BLOCK NET BLOCK
Mar 31 April 1, Mar 31, Mar 31, Mar 31,
Apr 1, 2,017 Addition Sale/Adj* 2018 2,017 Addition Sale/Adj* 2018 2018 2018
Computers 326 574 (2) 901 196 380 (9) 585 316 5
Furniture - 72 - 72 - 4 - 4 68 1
TOTAL 326 646 (2) 973 196 384 (9) 589 384 6

GROSS BLOCK (at Cost) ACCUMULATED DEP NET BLOCK NET BLOCK
Mar 31 April 1, Mar 31, Mar 31, Mar 31,
Apr 1, 2,016 Addition Sale/Adj* 2017 2,016 Addition Sale/Adj* 2017 2017 2017
Computers 7,474 - 7,148 326 7,203 3 7,010 196 130 2
Furniture 989 - 989 - 989 989 - - -
Leasehold
14,165 - 14,165 - 14,136 14,136 - - -
Improvement
TOTAL 22,628 - 22,302 326 22,328 3 22,135 196 130 2

(` 0 thousand indicates values are lower than ` 1 thousand or US$ 1 thousand)

* Includes translation reserve of ` 6 thousand (previous year ` 168 thousand)

60
notes
forming part of the financial statements for the year ended March 31, 2018 Continued

(` in 000’s) (US$ in 000’s)

As at As at March As at As at March
March 31, 2018 31, 2017 March 31, 2018 31, 2017
8. LONG TERM LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Security deposit 4,971 4,647 76 72
TOTAL 4,971 4,647 76 72

9. TRADE RECEIVABLES
Unsecured, considered good
Due from ICICI Securities Ltd. (Ultimate Holding Company) 87,665 14,558 1,345 224
Other Receivables 2,933 2,918 45 45
TOTAL 90,598 17,476 1,390 269

10. CASH AND BANK BALANCES

Cash and cash equivalents
Balances with banks 200,584 150,671 3,078 2,323
TOTAL 200,584 150,671 3,078 2,323

11. SHORT TERM LOANS AND ADVANCES

(Unsecured, considered good unless otherwise stated)
Other advances and deposits * 3,361 2,375 52 37
Security deposit for leased premises 826 32,767 13 505
Total 4,187 35,142 64 542
*Other advances and deposits include:
Prepaid Expenses 1,503 1,486 23 23

For the For the For the For the

year ended year ended year ended year ended
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

12. REVENUE FROM OPERATIONS

Brokerage and commission 214,010 161,004 3,320 2,405
Financial advisory services 36,799 3,356 571 45
TOTAL 250,809 164,360 3,891 2,450

13. OTHER INCOME

Foreign exchange translation 2,177 - 34 -
TOTAL 2,177 - 34 -

14. EMPLOYEE BENEFITS EXPENSE

Salaries, wages and incentive 151,419 103,623 2,349 1,545
Staff welfare expenses 4,800 6,543 74 97
TOTAL 156,219 110,166 2,423 1,642

15. OPERATING EXPENSES

Commission expenses and transaction charges 11,298 - 175 -
Other operating expenses 1,137 1,204 18 18
TOTAL 12,435 1,204 193 18

16. FINANCE COST

Bank charges 3,645 4,333 57 65
TOTAL 3,645 4,333 57 65

17. OTHER EXPENSES

Rent and amenities 5,620 3,347 87 50
Rates and taxes 993 199 16 3
Insurance 288 285 4 5
Business promotion, travelling and conveyance expenses 6,986 8,172 108 122
Subscription and periodicals 5,338 5,837 83 87
Printing and stationery 500 445 8 7
Communication expenses 1,916 1,808 30 27
Professional fees 7,415 7,639 115 114
Auditors' remuneration 4,849 4,022 75 60
Repairs, maintenance, upkeep and others 1,794 3,182 28 47
Foreign exchange translation - 2,879 - 42
TOTAL 35,699 37,815 554 564

61
 notes
forming part of the financial statements for the year ended March 31, 2018 Continued
18. Deferred tax 21. Sublease
Deferred Tax asset resulting from accumulated losses have not been accounted The Company had a lease agreement for its office space in New York City.
in the absence of virtual certainty of availability of sufficient future taxable income. During the year 2009-10, the Company sub-leased its office space in New York
City, by entering into sublease agreement with US Bank National Association.
19. Auditor’s remuneration
The details regarding the remuneration paid to the auditors are given in the table ICICI Securities Limited had provided a corporate guarantee on behalf of the
below Company to its sub lessee amounting to USD 1,500 thousand. This guarantee
was provided as per the prevailing practice in the New York sub lease market
(` in 000’s) (US$ in 000’s) to secure the Company’s performance of its lease obligations. ICICI Securities
Limited also provided Standby Letter of Credit (issued by ICICI Bank Limited) of
Year ended Year ended USD 1,000 thousand to the sub lessee of the Company. The sublease period
March 31, March 31, March 31, March 31, ended on February 28, 2017.
2018 2017 2018 2017
22 Related Party Disclosures
Audit fees 4,214 3,864 65 58 As per accounting standard on related party disclosures (AS18) the names of
Out of pocket expenses 635 134 10 2 the related parties of the Company are as follows:
Total 4,849 3,998 75 60 A. Related party where control exists irrespective whether transactions have
occurred or not
20. Earnings per equity share (EPS) Ultimate Holding Company: ICICI Bank Limited
(` in 000’s) (US$ in 000’s) Intermediary Holding Company: ICICI Securities Limited
Year ended Year ended
Holding Company: ICICI Securities Holding Inc.
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 B. Other related parties where transactions have occurred during the year:
NIL
Basic & Diluted
Weighted average no. of C. Key Management Personnel
equity shares outstanding 1,298 1,298 1,298 1,298
a) Bishen Pertab President & CEO
Net profit / (loss) 43,593 10,169 676 150
Basic earnings per share b) Robert Ng CEO Singapore Branch
(Rs.)/ (US$) 33,584.49 7.83 521 115.43

The following transactions were carried out with the related parties in the ordinary course of business.

Ultimate Holding Company Intermediary Holding Company Fellow Subsidiary

Nature of Transaction (` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s)
Income from Services
ICICI Securities Limited - - 214,010 3,320 - -
- - (161,004) (2,405) - -
ICICI Securities Primary Dealership - 2,901 45
Limited - (3,019) (45)
Operating expenses
ICICI Securities Limited - - 11,395 177 - -
- - - - - -
Reimbursement of expenses
ICICI Securities Limited - - 709,928 11,014 - -
- - (7,581) (113) - -
Finance charges
ICICI Bank Limited 3,309 51 - - - -
(3,267) (50) - - - -
ICICI Securities Limited - - - - - -
- - (573) (9) - -

The balances payable to/receivable from related parties included in the balance sheet as on March 31, 2018 are given below:

Holding Company Intermediary Holding Company Fellow Subsidiary

Nature of Transaction (` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s) (` in 000’s) (US$ in 000’s)
Receivables - -
ICICI Securities Limited - - 87,227 1,345 - -
- - (14,558) (224) - -
ICICI Securities Primary Dealership - - - - 2,933 45
Limited (2,981) (45)
Payables
ICICI Securities Holdings Inc. 29,589 454 - - - -
(29,716) (458) - - - -
Share Capital
571,667 12,980 - - - -
ICICI Securities Holdings Inc.
(571,667) (12,980) - - - -

62
notes
forming part of the financial statements for the year ended March 31, 2018 Continued
Other related party transactions are given below 23 Conversion to Indian Rupees
Intermediary Holding Company All income and expense items are converted at the average rate of exchange
Nature of Transaction applicable for the year. All assets (except Investments) and liabilities (except
(` in 000’s) (US$ in 000’s)
Share Capital) are translated at the closing rate as on the Balance Sheet date.
Guarantees given by
ICICI Securities Limited (Corporate - - The Equity Share Capital and Investments in subsidiary is carried forward
Guarantee) (97,275) (1,500) at the rate of exchange prevailing on the transaction date. The resulting
- - exchange difference on account of translation at the year-end are transferred to
ICICI Securities Limited. (Standby
Bank letter of credit) Translation Reserve account and the said account is being treated as “Reserves
(64,850) (1,000) and Surplus”.
Amount in parenthesis represent previous year figures
Amounts in US$ (USD) given in the financial statements are stated only for the
Key Management Personnel purpose of conversion.
The compensation for the year ending March 31, 2018 to Bishen Pertab,
President & CEO was Rs.20,257 thousand (US$ 314 thousand) March 2017 Rs 24 F
igures for the previous year have been regrouped/reclassified wherever
18,272 thousand (US$ 272 thousand), Robert Ng, CEO Singapore Branch Rs necessary.
17,084 thousand (US$ 265 thousand) March 2017 Rs. 13,142 thousnand(US$
196 thousand)

As per our report of attached Signature to Note 1 to 24

For B S R & Co. LLP For and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration No.:101248W/W-100022
RIPUJIT CHAUDHURI
Chairman

VENKATARAMANAN VISHWANATH
Partner BISHEN PERTAB ROBERT NG
Membership No.: 113156 President Director

Mumbai, April 12, 2018 Singapore, April 11, 2018

63
 cash flow statement
for the year ended March 31, 2018

(` in 000’s) (US$ in 000’s)

Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
A Cash flow from operating activities
Profit before tax 44,606 10,673 692 158
- Depreciation 382 169 6 3
- Exchange adjustments 1,723 (3,096) (0) -
Operating profit before changes in operating assets and liabilities 46,711 7,746 698 161

Adjustments for net change in operating assets and liabilities

- Trade Receivables relating to operations (73,122) 21,986 (1,121) 327
- Loans and advances relating to operations 30,632 2,938 473 32
- Current liabilites relating to operations 46,828 (666) 723 13
4,338 24,258 75 372
Cash generated from operations 51,049 32,004 773 533
Payment of taxes (498) (488) (8) (8)

Net cash generated from/ used in operating activities 50,551 31,516 765 525

B Cash flow from investment activities

- Purchase of fixed assets (639) - (10) -
Net cash used in investment activities (639) - (10) -

C Cash flow from financing activities - -- - -

Net change in cash and cash equivalents 49,912 31,516 755 525
Cash and cash equivalents at the beginning of the year 150,671 119,155 2,323 1,798
Cash and cash equivalents at the end of the year 200,584 150,671 3,078 2,323
Components of cash and cash equivalents
In current account with banks 200,584 150,671 3,078 2,323

Note : The above cash flow statement has been prepared under the Indirect method as set out in Accounting Standard - 3 on cash flow statements.

This is the Cash Flow Statement referred to in our report of even date.

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP RIPUJIT CHAUDHURI

Chartered Accountants Chairman
ICAI Firm Registration No.:101248W/W-100022

VENKATARAMANAN VISHWANATH BISHEN PERTAB ROBERT NG

Partner President Director
Membership No.: 113156

Mumbai, April 12, 2018 Singapore, April 11, 2018

64
 ICICI Securities LIMITED - CONSOLIDATED FINANCIALS
independent auditors’ report
To the Members of ICICI Securities Limited
Report on the AUDIT OF consolidated Financial Statements
We have audited the accompanying Consolidated Financial Statements of ICICI
Securities Limited (hereinafter referred to as the “Holding Company”) and its
subsidiaries (the Holding Company and its subsidiaries together referred to as the
“Group”), which comprise the Consolidated Balance Sheet as at 31 March 2018, the
Consolidated Statement of Profit and Loss, the Consolidated Cash Flow Statement
for the year then ended, including a summary of the significant accounting policies
and other explanatory information (hereinafter referred to as the “Consolidated
Financial Statements”).
Management’s responsibility for the consolidated financial
statements
The Holding Company’s Board of Directors is responsible for the preparation of these
Consolidated Financial Statements in terms of the requirements of the Companies
Act, 2013 (the “Act”) that give a true and fair view of the consolidated state of affairs,
consolidated profit / loss and consolidated cash flows of the Group in accordance
with the accounting principles generally accepted in India, including the Accounting
Standards prescribed under section 133 of the Act. The respective Board of Directors
of the companies included in the Group are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Group and for preventing and detecting frauds and other irregularities;
the selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation of the Consolidated Financial
Statements by the Directors of the Holding Company, as aforesaid.
In preparing the Consolidated Financial Statements, the respective Board of
Directors of the companies included in the Group are responsible for assessing the
ability of the Group to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these Consolidated Financial
Statements based on our audit. While conducting the audit, we have taken into
account the provisions of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions of the Act
and the Rules made thereunder.
We conducted our audit of the Consolidated Financial Statements in accordance
with the Standards on Auditing specified under section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the Consolidated Financial
Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the Consolidated Financial Statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the Consolidated Financial Statements, whether
due to fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Holding Company’s preparation of the
Consolidated Financial Statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by the Holding Company’s Board of Directors, as
well as evaluating the overall presentation of the Consolidated Financial Statements.
We are also responsible to conclude on the appropriateness of management’s
use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw
attention in the auditor’s report to the related disclosures in the Consolidated
Financial Statements or, if such disclosures are inadequate, to modify the
opinion. Our conclusions are based on the audit evidence obtained up to the
date of the auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the Consolidated Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Consolidated Financial Statements give the information
required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the
consolidated state of affairs of the Group as at 31 March 2018, and their consolidated
profit and their consolidated cash flows for the year ended on that date.
Other matter
The comparative financial information of the Group for the year ended 31 March
2017 prepared in accordance with Accounting Standards as included in these
Consolidated Financial Statements have been audited by the predecessor auditor
who had audited the Consolidated Financial Statements for the year ended 31 March
2017. The report of the predecessor auditor on the comparative financial information
dated 20 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
Report on other legal and regulatory requirements
As required by section 143 (3) of the Act, based on our audit, we report, to the extent
applicable, that:
(a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit
of the aforesaid Consolidated Financial Statements;
(b) In our opinion, proper books of account as required by law relating to preparation
of the aforesaid Consolidated Financial Statements have been kept so far as it
appears from our examination of those books;
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and
Loss, and the Consolidated Cash Flow Statement dealt with by this Report are
in agreement with the relevant books of account maintained for the purpose of
preparation of the Consolidated Financial Statements;
(d) In our opinion, the aforesaid Consolidated Financial Statements comply with the
Accounting Standards prescribed under Section 133 of the Act;
(e) On the basis of written representations received from the directors of the
Holding Company as on 31 March 2018 taken on record by the Board of Directors
of the Holding Company, none of the directors of the Holding Company are
disqualified as on 31 March 2018 from being appointed as a director in terms of
Section 164 (2) of the Act. Since the subsidiaries are not incorporated in India,
the provisions of Section 164(2) of the Act are not applicable and hence not
commented upon;
(f) With respect to the adequacy of the internal financial controls with reference
to the Consolidated Financial Statements of the Holding Company and the
operating effectiveness of such controls, refer to our separate Report in
“Annexure A”; and
(g) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations
given to us:
i. the Consolidated Financial Statements disclose the impact of pending
litigations on the consolidated financial position of the Group – Refer Note 34
to the Consolidated Financial Statements;
ii. the Group did not have any material foreseeable losses on long-term
contracts including derivative contracts during the year ended 31 March
2018.; and
iii. there were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Holding Company during the year
ended 31 March 2018. Since the subsidiaries are incorporated outside India,
the provisions of the Act relating to Investor Education and Protection Fund
are not applicable and hence not commented upon; and
iv. The disclosures in the Consolidated Financial Statements regarding holdings
as well as dealings in specified bank notes during the period from 8 November
2016 to 30 December 2016 have not been made since they do not pertain to
the financial year ended 31 March 2018. However, amounts as appearing in
the audited Consolidated Financial Statements for the year ended 31 March
2017 have been disclosed.
For B S R & Co.
Chartered Accountants
ICAI Firm Registration Number: 301003E
Venkataramanan Vishwanath
Partner
Mumbai, April 14, 2018 Membership No: 113156
65
 Annexure - A to the Independent Auditor’s Report of even date on the consolidated financial statements of
ICICI Securities Limited
Report on the Internal Financial Controls under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (the “Act”)
In conjunction with our audit of the Consolidated Financial Statements of ICICI
Securities Limited (the “Holding Company”) as of and for the year ended 31 March
2018, we have audited the internal financial controls over financial reporting of the
Holding Company, as of that date.
Management’s responsibility for internal financial controls
The Board of Directors of the Holding Company is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Holding Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the “Guidance Note”) issued by the
Institute of Chartered Accountants of India (the “ICAI”). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to the Holding Company’s policies, safeguarding of
its assets, prevention and detection of frauds and errors, accuracy and completeness
of the accounting records, and timely preparation of reliable financial information, as
required under the Act.
Auditor’s responsibility
Our responsibility is to express an opinion on the Holding Company’s internal
financial controls over financial reporting based on our audit. We conducted our
audit in accordance with the Guidance Note issued by the ICAI and the Standards on
Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of
the Act to the extent applicable to an audit of internal financial controls, both issued
by the ICAI. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
Our audit involved performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Holding Company’s internal financial
controls system over financial reporting.
66
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Inherent limitations of internal financial controls over financial
reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Holding Company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31 March 2018,
considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
For For B S R & Co.
Chartered Accountants
ICAI Firm Registration Number: 301003E
Venkataramanan Vishwanath
Partner
Mumbai, April 14, 2018 Membership No: 113156
consolidated balance sheet consolidated statement of profit and loss
at March 31, 2018 for the year ended March 31, 2018

(` million) (` million)
As at As at For the year For the year
Notes March 31, March 31, Notes ended March ended March
2018 2017 31, 2018 31, 2017
I EQUITY AND LIABILITIES
1 Revenue from operations
1 Shareholders' funds
(a) Share capital 3 1,610.7 1,610.7 (a) Brokerage income 10,243.0 7,755.9
(b) Reserves and surplus 4 6,731.1 3,285.1
(b) Income from services 6,548.3 4,981.9
8,341.8 4,895.8
2 Non-current liabilities
(c) Interest and other operating income 22 1,582.9 1,090.6
(a) Other long term liabilities 5 1,007.6 826.5
(b) Long term provisions 6 427.7 338.1 (d) Profit/(loss) on sale of securities (net) 23 219.1 213.9
1,435.3 1,164.6
3 Current liabilities Total Revenue from operations 18,593.3 14,042.3
(a) Short term borrowings 7 6,725.1 3,954.1
(b) Trade payables 8 2 Other income - -
i) total outstanding dues of micro - -
enterprises and small enterprises 3 Total Revenue (1 + 2) 18,593.3 14,042.3
ii) total outstanding dues of 10,077.2 8,699.3
creditors other than Micro 4 Expenses:
enterprises and small enterprises
(a) Employee benefits expenses 24 5,453.2 4,846.6
(c) Other current liabilities 9 2,115.3 1,709.6
(d) Short term provisions 10 107.0 51.0 (b) Operating expenses 25 1,683.3 1,287.5
19,024.6 14,414.0
28,801.7 20,474.4 (c) Finance costs 26 494.9 289.4
II ASSETS
1 Non-current assets (d) Depreciation and amortization 11 153.0 154.8
(a) Fixed assets 11 expense
(i) Property, plant and equipment 297.0 241.9
(ii) Intangible assets 85.4 104.4 (e) Other expenses 27 2,260.2 2,243.6
(iii) Capital work-in-progress 15.1 0.5
Total expenses 10,044.6 8,821.9
(iv) Intangible assets under
development 23.8 27.9
5 Profit before tax (3- 4) 8,548.7 5,220.4
421.3 374.7
(b) Non-current investments 12 18.9 20.5 6 Tax expense:
(c) Deferred tax assets 13 736.4 577.8
(d) Long term loans and advances 14 1,435.4 1,361.8 (a) Current tax 3,130.0 1,903.7
(e) Other non-current assets 15 34.2 811.5
2,646.2 3,146.3 (b) Deferred tax (158.6) (69.2)
2 Current assets
(a) Current investments 16 - 0.7 Total tax expense 2,971.4 1,834.5
(b) Stock-in-trade 17 376.6 310.9
7 Profit after tax (5-6) 5,577.3 3,385.9
(c) Trade receivables 18 3,101.0 7,100.5
(d) Cash and bank balances 19 14,973.2 8,823.6 8 Earnings per equity share:
(e) Short term loans and advances 20 6,315.6 358.7
(f) Other current assets 21 1,389.1 733.7 Basic and diluted (in `) 28 17.31 10.51
26,155.5 17,328.1
(Face value ` 5/- per share)
28,801.7 20,474.4
III. Significant Accounting Policies 2 9 Significant Accounting Policies 2

The notes to the financial statements form an integral part of the Financial The Notes to the financial statements form an integral part of the Financial
Statements Statements

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

Chartered Accountants Chairperson Director
ICAI Firm Registration No.:101248W/W-100022 DIN - 00043617 DIN - 06559989

SHILPA KUMAR AJAY SARAF

VENKATARAMANAN VISHWANATH Managing Director & CEO Executive Director
Partner DIN - 02404667 DIN - 00074885
Membership No.:113156
RAJU NANWANI HARVINDER JASPAL
Company Secretary Chief Financial Officer
Mumbai, April 14, 2018

67
 notes
forming part of the accounts
1 Overview
Basis of preparation using the rates arrived at based on the useful lives estimated by the
The Company has prepared these consolidated financial statements to comply
in all material respects with accounting standard notified under section 133 of
the Companies Act 2013.
The Company consolidates entities in which it holds, directly or indirectly,
more than 50% of the voting rights or where it exercises control. The Company
does not consolidate entities where the control is intended to be temporary.
All significant intercompany accounts and transactions are eliminated on
consolidation.
The consolidated financial statements include results of ICICI Securities Limited
and its subsidiaries ICICI Securities Holdings Inc. and ICICI Securities Inc
incorporated in USA. The financial statements of the subsidiaries have been
consolidated considering the operations as non integral foreign operations. The
consolidated financial statements have been prepared on an accrual basis and
under the historical cost convention. The accounting policies applied by the
Group are consistent with those used in the previous year.
All assets and liabilities have been classified as current or non-current as per
the Company’s normal operating cycle and other criteria set out in the Schedule
III to the Companies Act, 2013. Based on the nature of the services and the
time between the provision of services and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for
the purpose of current and non-current classification of assets and liabilities.
2 Significant accounting policies
a) Use of estimates
The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles in India, requires management to
make judgments, estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) as of the
date of the consolidated financial statements and the reported income,
expenses and results during the reporting year. The estimates used in
the preparation of the consolidated financial statements are based on
management’s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b) Revenue recognition
i) Brokerage income in relation to stock broking activity is recognised on
a trade date basis.
ii) Revenue from issue management, debt syndication, financial advisory (ii) Intangible Assets /Amortisation
services etc., is recognised based on the stage of completion of
assignments and terms of agreement with the client.
iii) Commission income in relation to public issues/ other securities is
recognised based on mobilization and intimation received from clients
/ intermediaries.
iv) Gains/ losses on dealing in securities are recognised on a trade date
basis.
v) Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
vi) Revenue from dividend is recognised when the right to receive the
dividend is established.
vii) Training fee income from financial educational programs is recognized
on an accrual basis.
The amortization rates used are:
c) Investments
Investments are classified into long term investments and current
investments. Investments which are intended to be held for more than Computer software
one year are classified as long term investments and investments which
are intended to be held for less than one year are classified as current CMA Membership rights*
investments. Long term investments are accounted at cost and any decline *CMA-Capital Market Authority of Oman
in the carrying value other than temporary in nature is provided for in
the statement of profit and loss. Current investments are valued at cost f) Foreign exchange transactions
arrived at on first in first out (‘FIFO’) basis and fair value, determined on an
individual investment basis, whichever is lower.
On disposal of an investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of profit
and loss.
d) Stock-in-trade
Securities acquired with the intention to trade are classified as stock- in-
trade. The securities held as stock- in- trade are carried at cost arrived at
on first in first out (‘FIFO’) basis and fair value, determined on an individual
investment basis, whichever is lower. The profit or loss on sale of securities
is recognised on a trade date basis in the Statement of Profit and Loss.
e) Fixed assets g) Employee Benefits
(i) Property, Plant and Equipment (PPE)/ Depreciation Provident fund
PPE are carried at cost less accumulated depreciation. Cost comprises
purchase price, borrowing cost if capitalisation criteria are met, directly
attributable cost of bringing the asset to its working condition for the
intended use.
Losses arising from the retirement of, and gains or losses arising
from disposal of property, plant and equipment are recognised in the
statement of profit and loss.
68
Depreciation on fixed assets is calculated on straight line basis
management.
Depreciation on PPE is calculated on a straight-line basis using the
rates arrived at based on the useful lives estimated by management/
limits specified in schedule II of the Companies Act, 2013. The Group
has used the following rates to provide depreciation on the PPE.
Asset Holding Company Subsidiaries
Useful life Useful life
Tangible Assets
Office equipment's 5 years 3 years
comprising air conditioners,
photo-copying machines,
etc.
Computers 3 years 3 years
Servers & Network 6 years -
Furniture and fixtures 6.67 years 7 years
Motor vehicles 5 years -
Leasehold improvements are depreciated over the lease period subject to a
maximum of 9 years.
Depreciation is provided on a straight-line basis from the date the asset is
ready for its intended use or put to use whichever is earlier. In respect of
assets sold, depreciation is provided up to the date of disposal.
Management has estimated, the useful lives of the following classes of
assets, which is lower than that indicated in Schedule II of the Companies
Act, 2013. This is based on the consistent practices followed, past
experience and is supported by technical advice.
I) The motor vehicles are depreciated over the estimated useful lives of
5 years.
II) The Furniture and fixture are depreciated over the estimated useful
lives of 6.67 years.
The residual values, useful lives and methods of depreciation of property,
plant and equipment are reviewed at the end of each financial year and
adjusted prospectively.
Intangible assets acquired separately are measured on initial recognition at
cost. Following initial recognition, intangible assets are carried at cost less
accumulated amortization. Intangible assets are amortised on a straight
line basis over their estimated useful lives. The amortisation period and
the amortisation method are reviewed at least at each financial year end. If
the expected useful life of the asset is significantly different from previous
estimates, the amortisation period is changed accordingly.
Gains or losses arising from the retirement or disposal of an intangible
asset are determined as the difference between the net disposal proceeds
and the carrying amount of the asset and recognised as income or expense
in the statement of profit and loss.
Intangible asset Holding Company Subsidiaries
Useful life Useful life
4 years 3 years
5 years -
Foreign currency income and expenditure items of domestic operations are
translated at the exchange rates prevailing on the date of the transaction.
Monetary foreign currency assets and liabilities of domestic foreign
operations are translated at closing exchange rates at the balance sheet
date and the resulting gains/losses are included in the statement of profit
and loss in the year in which they arise.
Income and expenditure of non-integral foreign operations are translated
at monthly average rates. The assets and liabilities of non-integral foreign
operations other than share capital and fixed assets are translated at
closing exchange rates at the balance sheet date and the resultant profits /
losses from exchange differences are accumulated in the foreign currency
translation reserve until the disposal of the net investment in the non-
integral foreign operations.
Retirement benefit in the form of provident fund is a defined contribution
scheme. The Group is statutorily required to contribute a specified
portion of the basic salary of an employee to a provident fund as a part of
retirement benefits to its employees. The contributions during the period/
year are charged to the statement of profit and loss. The Group recognises
contribution payable to the provident fund scheme as an expenditure when
an employee renders the related service.
notes
forming part of the accounts
With respect to Oman Branch, for Omani national employees, the Group
makes contributions to the Omani Public Authority for Social Insurance
Scheme calculated as a percentage of the employees’ salaries. The
Group’s obligations are limited to these contributions, which are expensed
when incurred.
Gratuity
The Group pays gratuity, a defined benefit plan to its employees who retire
or resign after completion of minimum period of five years of continuous
service and in the case of employees at overseas locations as per rules
in force in the respective countries. The Group makes contributions to
the ICICI Securities Employees Gratuity Fund which is managed by ICICI
Prudential Life Insurance Company Limited for the settlement of gratuity
liability.
The Group accounts for the gratuity liability as per an actuarial valuation by
an actuary appointed by the Group. In accordance with the gratuity fund’s
rules, actuarial valuation of gratuity liability is calculated based on certain
assumptions regarding rate of interest, staff mortality and staff attrition as
per the projected unit credit method made at the end of each reporting
period. Actuarial gains and losses for defined benefit plans are recognised
in full in the period which they occur in the statement of profit and loss.
With respect to Oman Branch, the Group provides end of service benefits
to its expatriate employees. The entitlement to these benefits is based upon
the employees’ final salary and length of service, subject to the completion
of a minimum service period. The expected costs of these benefits are
accrued over the period of employment.
Compensated absence
The employees can carry forward a portion of the unutilized accrued
compensated absences and utilize it in future service periods or receive
cash compensation on termination of employment. Since the compensated
absences do not fall due wholly within twelve months after the end of the
period in which the employees render the related service and are also not
expected to be utilized wholly within twelve months after the end of such
period, the benefit is classified as long-term employee benefit. The Group
records an obligation for such compensated absences in the period in
which the employee renders the services that increase the entitlement. The
obligation expected to fall beyond 12 months is measured on the basis of
independent actuarial valuation using the projected unit credit method.
Long term incentives
The Group has a long term incentive plan which is paid in three annual
tranches. The Group accounts for the liability as per an actuarial valuation.
The actuarial valuation of the long term incentives liability is calculated
based on certain assumptions regarding rate of interest and staff attrition
as per the projected unit credit method made at the end of each reporting
period. The actuarial losses / gains are recognized in the statement of profit
and loss in the period in which they arise.
h) Income taxes
Income tax expense is the aggregate amount of current tax and deferred
tax borne by the Group. Current tax expense and deferred tax expense is
determined in accordance with the provisions of the Income Tax Act, 1961
and tax laws prevailing in the respective tax jurisdictions where the Group
operates. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.
Deferred tax assets and liabilities are recognised on a prudent basis for the
future tax consequences of timing differences arising between the carrying
values of assets and liabilities and their respective tax basis. The impact
of changes in the deferred tax assets and liabilities is recognised in the
statement of profit and loss.
Deferred tax assets are recognised and reassessed at each reporting date,
based upon management’s judgment as to whether their realization is
considered as reasonably certain. The Group writes-down the carrying
amount of deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be realized.
Any such write-down is reversed to the extent that it becomes reasonably
certain or virtually certain, as the case may be, that sufficient future taxable
income will be available. Deferred tax assets are recognised in case there
are carry forward of unabsorbed depreciation, tax losses and carry forward
capital losses, to extent there is virtual certainty supported by convincing
evidence that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
In accordance with the recommendations contained in the Guidance note
on accounting for credit available in respect of Minimum Alternative Tax
(“MAT”) issued by the Institute of Chartered Accountants of India, MAT
credit is recognised as an asset to the extent there is convincing evidence
that the Group will pay normal income tax during the specified period
in future. MAT credit is recognised as an asset by way of a credit to the
statement of profit and loss and shown as MAT credit entitlement in the
year in which MAT credit becomes eligible to be recognized as an asset.
The Group reviews the “MAT credit entitlement” asset at each reporting
date and writes down the asset to the extent the Group does not have
convincing evidence that it will pay normal tax during the specified period.
i) Impairment of assets
Property, plant and equipments are reviewed at the reporting date, for
impairment whenever events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable. Recoverability
Continued
of assets to be held and used is measured by a comparison of the carrying
amount of an asset to future net discounted cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the
impairment is recognised by debiting to the statement of profit and loss
and is measured by the amount by which the carrying amount of the assets
exceeds the fair value of the assets. A previously recognized impairment
loss is reversed only if there has been a change in the assumptions used
to determine the asset’s recoverable amount since the last impairment loss
was recognized. The reversal is limited so that the carrying amount of the
asset does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no
impairment loss been recognized for the asset in prior years. Such reversal
is recognized in the statement of profit and loss.
j) Provisions
Provision is recognised when an enterprise has a present obligation as a
result of a past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate
can be made. Provisions are determined based on management estimates
required to settle the obligation at the balance sheet date, supplemented
by experience of similar transactions. These are reviewed at the balance
sheet date and adjusted to reflect the current management estimates.
k) Contingent liabilities and assets
Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Group or a present obligation that arises
from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be
made, is termed as a contingent liability. The existence of a contingent
liability is disclosed in the notes to the financial statements. Contingent
assets are neither recognized nor disclosed.
l) Earnings per share (“EPS”)
Basic earnings per share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed using the weighted average
number of equity shares and dilutive potential equity shares outstanding
during the year. For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
m) Lease
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the leased term are classified as operating leases.
Operating lease payments are recognised as an expense in the statement
of profit and loss on a straight-line basis over the lease term.
n) Cash and cash equivalents
Cash and cash equivalents include cash in hand, balances with the banks and
short term investments with an original maturity of three months or less.
o) Borrowing Cost
Borrowing costs are interest and other costs incurred by the Group in connection
with the borrowing of funds. Borrowing costs directly attributable to acquisition
or construction of those tangible fixed assets which necessarily take a substantial
period of time to get ready for their intended use are capitalized. Other borrowing
costs are recognized as an expense in the year in which they are incurred.
The difference between the discounted amount mobilized and redemption
value of commercial papers is apportioned on time basis over the life of the
instrument and charged as interest expense in the statement of profit and loss.
p) Segment reporting
Revenue and identifiable operating expenses in relation to segments are
categorized based on items that are individually identifiable in that segment.
Certain revenue and expenses, which form component of total revenue and
expenses, are not identifiable to specific segments as the underlying resources
are used interchangeably, same has been allocated on reasonable basis to
respective segment. Revenue and expenses, which relate to the Group as a
whole and are not allocable to segments on a reasonable basis, have been
included under “Unallocated expenses/income”. Assets and liabilities in relation
to segments are categorized based on items that are individually identifiable
in that segment. Certain assets and liabilities, which form component of total
assets and liabilities, are not identifiable to specific segments as the underlying
resources are used interchangeably. Assets and liabilities, which relate to the
Group as a whole and are not allocable to segments on a reasonable basis,
have been included under “Unallocated assets/Liabilities”.
q) Derivative Instruments
The Group enters into exchange traded derivative products i.e. equity / index
futures and options, for proprietary trading purposes. The derivative contracts
are recognized on a trade date basis and stated at the fair value, being the
last quoted closing price on the National Stock Exchange of India Limited
(‘NSE’) (in case not traded on NSE, last quoted closing price on BSE Limited
is considered) on the balance sheet date. Changes in the fair value of the
derivative contracts are recognized in the statement of profit and loss.
69
 notes
forming part of the accounts Continued
3. SHARE CAPITAL
(` million)
As at As at March
March 31, 2018 31,2017
Authorized:
400,000,000 equity shares of ` 5/- each (March 31, 2017: 1000,000,000 2,000.0 2,000.0
equity shares of ` 2/- each).

5,000,000 preference shares of ` 100/- each 500.0 500.0

(March 31, 2017 : 5,000,000 of ` 100/- each)
2,500.0 2,500.0
Issued, subscribed and fully paid-up shares:
322,141,400 equity shares of ` 5/- each fully paid (March 31, 2017 : 805,353,500 1,610.7 1,610.7
equity shares of ` 2/- each fully paid)
TOTAL 1,610.7 1,610.7

Reconciliation of the shares at the beginning and at the end of the year
a. Equity shares
As at March 31, 2018 As at March 31, 2017
Nos. (` million) Nos. (` million)
At the beginning of the year 805,353,500 1,610.7 805,353,500 1,610.7
Issued during the year - Bonus issue - - - -
Issued during the year - ESOP - - - -
Consolidation of shares - Nos (refer note below)* (483,212,100) - - -
Outstanding at the end of the year 322,141,400 1,610.7 805,353,500 1,610.7

* The shareholders of the Company have, at the Extraordinary General Meeting (EGM) held on December 4, 2017 accorded their consent to the consolidation of the
authorised and issued equity share capital of the Company by increasing the nominal value of the equity share from ` 2/- (Rupees two only) each to ` 5/- (Rupees five only)
each. The record date for the consolidation was December 8, 2017. Accordingly, the revised authorised equity share capital of the Company now stands at 400,000,000
equity shares of ` 5/- each and issued, subscribed and paid up equity share capital 322,141,400 equity shares of ` 5/- each.
During the quarter ended March 31, 2018, the Company completed the Initial Public Offering (IPO) through an Offer for Sale of 66,925,305 equity shares of
` 5/- each at a price of ` 520 per equity share by ICICI Bank Limited, the Holding Company, aggregating upto ` 34,801.2 million. The equity shares of the company were
listed on the National Stock Exchange of India Limited and BSE Limited on April 4, 2018.
b. Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of ` 5/- per share with effect from December 4, 2017. Till December 3, 2017, the Company had only
one class of equity shares having par value of ` 2/ per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in
Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year, the Company had declared and paid interim dividend of ` 5.50 per share amounting to ` 2,132.5 million. Further the Board of Directors at their meeting
held on April 14, 2018 proposed a final dividend of ` 3.90 per share, subject to the approval of the members at the ensuing Annual General Meeting. In terms of revised
Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the Balance Sheet date’ as notified by Ministry of Corporate Affairs through amendments to
Companies Accounting Standard (Amendment) Rules, 2016, dated March 30, 2016, the Company has not accounted for proposed dividend as a liability as at March 31,
2018. If approved the total liability arising to the Company would be ` 1,514.6 million including dividend distribution tax., (Previous year ` Nil).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Pattern of Shareholding
Details of Share held by shareholders holding more than 5% of the agreegate shares of the Company:
Shareholder As at March 31, 2018 As at March 31, 2017
Nos. % of Holding Nos. % of Holding
ICICI Bank Limited & its nominees 255,216,095 79.22% 805,353,500 100%
Total 255,216,095 79.22% 805,353,500 100.00%

d. Aggregate number of bonus share issued, shares issued for consideration other than cash and shares bought back the period for five years immediately preceding the
reporting date:

Particulars 2018 2017 2016 2015 2014

No of Shares
Equity shares bought back by the company - - - - -

70
notes
forming part of the accounts Continued
4. RESERVES AND SURPLUS
Reserves and surplus consist of the following:

(` in million) (` in million)
As at As at As at As at
March 31, March 31, March 31, March 31,
2018 2017 2018 2017

(a) Securities premium account 7. SHORT TERM BORROWINGS

Opening balance 244.0 244.0 Short-term borrowings consist of the following:
Add : Additions during the year (net) - - (a) Secured loans
Closing balance 244.0 244.0 Bank overdraft - -
(b) Foreign currency translation reserve (Secured against first charge on all
receivables, book debts, cash flows,
Opening balance 66.1 70.1
and proceeds arising therefrom and
Add : Additions during the year 1.2 (4.0) a lien on fixed deposits including
Closing balance 67.3 66.1 but not limited to the Company’s
(c) General reserve cash in hand both present and
Opening balance 666.8 666.8 future)
(b) Unsecured loans
Add : Additions during the year - -
Commercial paper
Closing balance 666.8 666.8 (repayable within one year) 6,725.1 3,954.1
(d) Surplus i.e. balance in statement of TOTAL 6,725.1 3,954.1
profit and loss
Opening balance 2,308.2 1,390.0 8. TRADE PAYABLES
Add: profit for the year 5,577.3 3,385.9 Trade payables consist of the following:
7,885.5 4,775.9
a) Total outstanding dues of
Less: Appropriations
i) total outstanding dues of
Interim dividend on equity shares 1,771.8 2,050.3 micro enterprises and small - -
Dividend distribution tax on equity enterprises
360.7 417.4
dividend ii) total outstanding dues of
Closing balance 5,753.0 2,308.2 creditors other than Micro 10,077.2 8,699.3
enterprises and small enterprises
TOTAL 6,731.1 3,285.1
TOTAL 10,077.2 8,699.3
5. OTHER LONG TERM LIABILITIES
Other long-term liabilities consist of the following: 9. OTHER CURRENT LIABILITIES
Other liabilities 1,007.6 826.5 Other current liabilities consist of the following:
TOTAL 1,007.6 826.5 (a) Income received in advance 15.0 37.6
(b) Others
Other liabilities include
1) Statutory liabilities 656.6 312.9
Long term incentives payable to
a) 
764.0 635.3 2) Employee related liabilities 1,370.0 1,276.7
employees
3) Other liabilities 73.7 82.4
b) Others 243.6 191.2
2,100.3 1,672.0
TOTAL 2,115.3 1,709.6
6. LONG TERM PROVISION
Long-term provisions consist of the following: 10. SHORT TERM PROVISION
a) Provision for employee benefits Short-term provision consist of the following:
i) Provision for gratuity (Refer Note 30) 382.7 320.3
ii) 
Provision for compensated absence 45.0 17.8 (a) Provision for employees benefits
TOTAL 427.7 338.1 i) Provision for gratuity (Refer
84.1 41.1
Note 30)
ii) Provision for compensated
22.9 9.9
absence
TOTAL 107.0 51.0

71
 11. Fixed Assets

72
Fixed assets consist of the following: (` million)
PROPERTY,PLANT AND EQUIPMENT INTANGIBLE

Computers Furniture & Office Vehicles Lease hold Total (A) Software CMA Total (B) TOTAL (A+B)
fixtures equipment improvements membership
right

Gross Block (At Cost)

At April 1, 2016 256.2 43.6 69.7 116.7 213.0 699.2 230.0 26.0 256.0 955.2

Additions 24.4 3.8 4.5 28.8 43.0 104.5 50.7 - 50.7 155.2

Sale / Adjustment * 46.2 15.1 4.4 17.0 12.6 95.3 46.8 0.5 47.3 142.6

At March 31, 2017 234.4 32.3 69.8 128.5 243.4 708.4 233.9 25.5 259.4 967.8

Additions 95.0 7.2 17.1 33.0 15.9 168.3 44.8 - 44.8 213.1

Sale / Adjustment * 40.3 1.5 2.5 30.0 7.0 81.3 50.4 - 50.4 131.7
notes

At March 31, 2018 289.1 38.0 84.4 131.5 252.3 795.3 228.3 25.5 253.8 1,049.1

Depreciation/Amortisation

At April 1, 2016 173.7 29.4 34.5 60.7 150.0 448.3 126.8 26.0 152.8 601.1

Additions 47.5 6.6 13.0 23.4 15.9 106.4 48.4 - 48.4 154.8
forming part of the accounts

Sale / Adjustment * 45.8 12.9 3.8 14.0 11.7 88.2 45.7 0.5 46.2 134.4

At March 31, 2017 175.4 23.1 43.7 70.1 154.2 466.5 129.5 25.5 155.0 621.5

Additions 44.9 3.9 12.3 24.5 18.0 103.6 49.4 - 49.4 153.0

Sale / Adjustment * 37.7 (2.4) 6.2 24.5 5.8 71.8 36.0 (0.0) 36.0 107.8

At March 31, 2018 182.6 29.4 49.8 70.1 166.4 498.3 142.9 25.5 168.4 666.7

Net Block

At March 31, 2017 59.0 9.2 26.1 58.4 89.2 241.9 104.4 0.0 104.4 346.3

At March 31, 2018 106.5 8.6 34.6 61.4 85.9 297.0 85.4 - 85.4 382.4

At March 31, 2017 * Fixed assets sale / adjustments includes effect of foreign currency translation amounting to ` 0.3 million (Previous year ` 0.2 million).

At March 31, 2018 * Fixed assets sale / adjustments includes effect of foreign currency translation amounting to ` 0.0 million (Previous year ` 0.3 million).
Continued
notes
forming part of the accounts Continued

(` in million) (` in million)
As at As at As at As at
March 31, March 31, March 31, March 31,
2018 2017 2018 2017

12. NON- CURRENT INVESTMENTS 14 LONG TERM LOANS AND ADVANCES

Non-current investments consist of the following: (` in million) Long term loans and advances consist of the following:
As at As at Unsecured, considered good
Quantity Face value March 31, March 31, (unless stated otherwise )
Name of the Company Nos. per unit 2018 2017 i) Capital advances 0.1 -
a) Trade Investments
ii) Security deposit for leased premises
In equity instruments and assets 271.4 334.9
(valued at cost)(fully
iii) Security deposit with stock
paid)
exchanges 60.7 30.4
a) BSE Limited
(Quoted) 11,414 (11,414) ` 2 / (` 2) 0.0 0.0 iv) Advance tax (net provision for tax of
b) Receivable ` 12,644.4 million (March 31, 2017 `
Exchange of India ` 10 9,494.8 million)" 1,062.0 971.0
Limited (Unquoted) 1,500,000(1,500,000) (` 10) 15.0 15.0 v) Deposit with related parties
c) Universal Trustees a) ICICI Lombard General Insurance
Private Limited Co. Limited 0.1 0.1
(Unquoted) 300,000(180,000) ` 10(` 10) 10.6 9.4
vi) Security deposit with related parties
d) Parabolic Drugs
Limited (quoted) Nil (794,000) Nil (` 10) - 45.5 a) ICICI Bank Limited 2.6 2.6
25.6 69.9 vii) Other loans and advances
Less : Provision for a) Prepaid expenses 14.4 1.9
investment (6.7) (49.4)
b) Other security deposit 11.2 6.8
TOTAL 18.9 20.5
1) Aggregate carrying 0.0 2.8 c) Others 12.9 14.1
amount of quoted TOTAL 1,435.4 1,361.8
investments
2) Aggregate market 8.6 17.9 15. OTHER NON-CURRENT ASSETS
value of quoted
investments Other non-current assets consist of the following:
3) Aggregate 18.9 17.7 (a) Interest receivable 0.9 9.0
carrying amount
of unquoted (b) Fixed Deposits with banks*
investments i) In India 24.8 794.1
4) Aggregate amount ii) Outside India 8.5 8.4
of diminution
in the value of 33.3 802.5
investments 6.7 49.4 TOTAL 34.2 811.5
5) ` 0.0 million
indicates values are * Fixed deposits under lien with stock exchanges amounted to ` 19.5 million
(March 31, 2017 : ` 731.3 million) and kept as collateral security towards bank
lower than
guarantees issued amounted to ` 11.1 million (March 31, 2017 : ` 8.6 million)
` 0.1 million where and kept as collateral security against bank overdraft facility amounted to
applicable ` Nil. (March 31, 2017 : ` 60.0 million) others wW 2.7 million (March 31, 2017 :
` 2.6 million)
13. DEFERRED TAX ASSETS
The break up of deferred tax asset is given below 16. CURRENT INVESTMENTS
Current investments consist of the following: (` in million)
a) Deferred tax asset in respect of
i) Provision for doubtful debts 45.0 22.1 As at As at
ii) Provision for gratuity 161.5 125.1 NAV per March 31, March 31,
Name of the Company Quantity Nos unit 2018 2017
iii) Provision for compensated absence 23.5 9.6
Mutual Funds (quoted):
iv) Provision for lease rent escalation 76.3 65.3
(a) 
ICICI Mutual Fund Nil/
v) Depreciation and amortisation 58.6 44.1 Fixed Maturity Plan Nil (50,000) ` 14.01 - 0.7
vi) Provision for investments 0.8 5.7   (unit of ` 10 each
fully paid)
vii) Revenue recognition 8.1 -
- 0.7
viii) Provision for foreign currency
0.2 -  urrent investments
C
translation reserve
are valued at cost or
ix) Provision for long term incentive market value whichever
362.1 305.7
and statutory bonus is lower.
x) Marked to market loss 0.3 0.2 Aggregate carrying - 0.7
amount of quoted
Total 736.4 577.8
investments
Aggregate market value - 0.7
of quoted investments

73
 notes
forming part of the accounts Continued

Name of the Company (` in million)

(` in million) As at As at
As at As at March 31, March 31,
March 31, 2018 March 31, 2017 2018 2017
17 . STOCK-IN-TRADE 18. TRADE RECEIVABLES
Stock-in-trade consist of the following: (` in million) Trade receivables consist of the following:
Secured
As at As at (a) Receivables outstanding for a
Quantity (Face
March 31, March 31, period exceeding six months:
Value)
2018 2017
i) Considered good - -
(a) Equity shares
(Quoted)(fully paid) ii) Considered doubtful - -
IRB InvIT Fund- 365,000 (Nil) / (b) Others
29.9 -
EQUITY ` 102 each
(1) Considered good 2,599.2 6,519.3
Mahindra Lifespace 100(100) /
0.0 0.0
Developers Ltd. (` 10 each) (2) Considered doubtful
29.9 0.0 Less: Provision for doubtful debt - -
(b) Non-convertible
debentures (quoted) TOTAL (A) 2,599.2 6,519.3
(fully paid) Unsecured
8.90% Indiabulls (a) Receivables outstanding for a
Nil(1,790) /
Housing Finance - 1.8 period exceeding six months:
` 1,000 each
Ltd. 26 09 2021
9.10 % Dewan 149,095 (1) Considered good 3.3 7.8
Housing Finance (150,095) / 149.7 150.1 (2) Considered doubtful 72.1 46.8
Corp Limited ` 1,000 each
Less: Allowances for doubtful debts (72.1) (46.8)
9.25 % Dewan
Nil (33,683) /
Housing Finance - 33.5 3.3 7.8
` 100 each
09/09/2023
(b) Others
10.75 %Dewan 32 (50) /
Housing Finance ` 1,000,000 - 50.3 (1) Considered good 498.5 573.4
23/08/2099 each (2) Considered doubtful 48.6 7.8
RCL Market Linked
Nil (375) / Less: Provision for doubtful debt (48.6) (7.8)
Debentures Series - 53.7
` 100,000 each
B-190 498.5 573.4
RCL Market Linked TOTAL (B) 501.8 581.2
Nil (150) /
Debentures Series - 21.5
` 100,000 each TOTAL (A) + (B)
B-198 3,101.0 7,100.5
8.75 % ERFL 22-03- 150,000(NIL) / Dues from directors and officers NIL (March 31, 2017: NIL)
148.5 -
2021 ` 1000 each
298.2 310.9
19. CASH AND BANK BALANCE
(c) Bond (quoted)(fully
paid) Cash and bank balances consist of the following:
4 (Nil) / (i) Cash and Cash equivalents
8.85 % HDFC Bank
` 1,000,000 4.0 -
12-05-2099 Cash on hand * 0.0 -
each
19 (Nil) / Cheques on hand - 10.2
8.75 % Axis Bank
` 1,000,000 18.9 - Balances with Banks
28-06-2099
each
9.50 % Yes Bank 25 (Nil) / (a) In Current accounts with banks
25.6 -
23-12-2099 ` 1,000,000 each i) In India 1,302.5 1,010.1
48.5 -
ii) Outside India 218.2 186.0
TOTAL 376.6 310.9
(b) 
Fixed Deposit with maturity less
than 3 months 250.0 -
1) Stock in trade are valued at cost or
market value whichever is lower. 1,770.7 1,206.3
(ii) Other bank balances
2) Aggregate carrying value of quoted
376.6 310.9 Fixed deposits in India** 13,202.5 7,617.3
securities
3) Aggregate market value of quoted TOTAL 14,973.2 8,823.6
379.3 314.4
securities * ` 0.0 million indicates values are lower than ` 0.1 million, where applicable
4) ` 0.0 million indicates values are
lower than ` 0.1 million where ** Fixed deposits under lien with stock exchanges amounted to ` 11,739.6
applicable million (March 31, 2017 : ` 6,936.5 million) and kept as collateral security
towards bank guarantees issued amounted to ` 372.2 million (March 31, 2017
: ` 0.4 million) and kept as collateral security against bank overdraft facility
amounted ` 1,089.7 million (March 31, 2017 : ` 504.2 million) others ` 1.0
million (March 31, 2017 : ` 80.7 million)

** Fixed deposits other than under lien having original maturity more than 3
months ` Nil (March 31, 2017 : ` 95.5 million)

74
notes
forming part of the accounts Continued

(` in million) (` in million)
As at As at For the year For the year
March 31, March 31, ended March ended March
2018 2017 31, 2018 31, 2017

20. SHORT-TERM LOANS AND ADVANCES 25. OPERATING EXPENSES

Short term loans and advances consist of the following: Operating expenses consist of the following:
(a)
Secured, considered good (a) Brokerage and commission 692.5 455.2
i) Margin trade funding 5,560.0 - (b) Transaction charges 100.9 89.0
ii) ESOP Funding 226.9 49.6 (c) Turnover fees and stamp duty 25.3 6.4
(b)
Unsecured, considered good (d) Custodial and depository charges 471.7 378.2
i) Security deposit for leased (e) Call centre charges 123.2 125.6
premises and assets 14.4 55.7
(f) Franking charges1 93.9 91.0
ii) Other loans & advances
(g) Scanning expenses 47.1 36.9
a) Prepaid expenses 35.2 35.5
(h) Customer loss compensation 16.1 42.2
b) Advance to creditors 80.7 28.7
c) Other advances 398.4 189.2 (i) Bad and doubtful debts 78.7 34.6
TOTAL 6,315.6 358.7 (j) Other operating expenses 33.9 28.4
TOTAL 1,683.3 1,287.5
21. OTHER CURRENT ASSETS
Other current assets consist of the following: 1. Net of recoveries 55.5 39.4
(a) Accrued income from services 365.9 438.4
(b) Accrued Interest 463.4 286.0
26. FINANCE COSTS
(c) Others* 559.8 9.3
TOTAL 1,389.1 733.7 Finance cost consist of the following:

*Others includes amounts due from ICICI Bank Ltd ` 545.9 million towards (a) Interest expense 483.3 276.7
reimbursement of IPO expenses. (b) Other borrowing cost 11.6 12.7
TOTAL 494.9 289.4
22. INTEREST AND OTHER OPERATING INCOME
Interest and other operating income consist of the following: 27. OTHER EXPENSES
For the year For the year Other expenses consist of the following:
ended March 31, ended March 31, (` in million)
2018 2017
(a) Rent and amenities 671.1 723.6
(a) Interest Income on
i) Fixed deposits and application (b) Insurance 4.1 3.5
805.8 602.8
money (c) 
Travelling and conveyance
215.3 223.2
ii) funding and late payments 746.3 474.3 expenses
iii) Securities held as stock-in-trade 22.0 3.8 (d) Business promotion 124.3 179.7
iv) Other advances and deposits 0.2 0.2 (e) 
Repairs, maintenance, upkeep and
414.5 387.3
others
(b) Dividend income 3.0 0.1
(f) Rates and taxes 53.5 54.8
(c) Other income 5.6 9.4
(g) Electricity expenses 63.2 98.6
TOTAL 1,582.9 1,090.6
(h) Communication expenses 183.6 147.7

23. PROFIT / (LOSS) ON SALE OF SECURITIES (NET) (Profit) / loss on sale of fixed asset
(i) 
16.8 2.5
(net)
Profit / (Loss) on sale of securities consist of the following:
(` in million) (j) Advertisement and publicity 86.3 85.2

For the year For the year (k) Printing and stationery 29.0 32.7
ended March 31, ended March 31, (l) Subscription and periodicals 88.9 80.9
2018 2017
(m) Professional fees 116.7 114.3
(a) P
 rofit/(loss) on securities held as
stock in trade / current investments 215.5 213.9 (n) 
Payment to non-executive directors 5.1 4.0
(net) (o) Auditors' remuneration 13.6 12.6
(b) P
 rofit/(loss) on sale of long term
3.6 - (p) 
Corporate social responsibility
investments (net) 91.6 65.4
expenses
TOTAL 219.1 213.9
(q) Recruitment expense 31.1 23.1

24 EMPLOYEE BENEFITS EXPENSE (r) 

Net gain or loss on foreign currency
17.6 3.9
transaction and translation
Employee benefits expense consist of the following:
(s) Royalty expenses 33.9 -
(a) Salaries, wages and bonus 4,948.3 4,344.1
(t) Donation - 0.6
(b) Contribution to gratuity/provident
280.0 268.2
and other funds TOTAL 2,260.2 2,243.6
(c) Staff welfare expenses 224.9 234.3
TOTAL 5,453.2 4,846.6

75
 notes
forming part of the accounts Continued
28. Earnings per share (` in million)
The computation of basic and diluted earnings per share is given below:- Holding
Fellow Subsidiary
Company
Year ended Year ended Nature of Transaction Company
Particulars March 31,
March 31, 2018 March 31, 2017 March 31,
Basic & diluted earning per share 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17
Net profit after tax, before preference Share capital 1,276.1 1,610.7
dividend (` million) 5,577.3 3,385.9 Payables 94.8 110.8
Net profit after tax and preference ICICI Lombard General Insurance Company Limited 0.7 0.5
dividend (` million) 5,577.3 3,385.9 ICICI Prudential Life Insurance Company Limited 0.1 0.6
Weighted average no. of equity shares ICICI Securities Primary Dealership Limited 0.2 0.5
outstanding (in million) 322.1 322.1 Fixed assets purchases
Basic & diluted earnings per share (`) 17.31 10.51 ICICI Prudential Life Insurance Company Limited 1.7 -
ICICI Prudential Asset Management Company Limited 1.0 -
Nominal value per share (`) 5.00 5.00
Fixed assets sold - 3.8
Fixed deposits 1,717.6 735.4
29. Related Party Disclosures Accrued interest Income 59.1 42.9
List of related parties Bank balance 1,290.4 1,001.5
Net of current liabilities ` 4.5 million (previous year ` Nil)
A. Related party where control exists irrespective whether transactions have
Deposit 2.6 2.6
occurred or not
ICICI Lombard General Insurance Company Limited 0.1 0.1
Holding Company: ICICI Bank Limited Stock in trade
B. Other related parties where transactions have occurred during the year Loans & advances (including prepaid expenses) 0.1 -
Fellow Subsidiaries: ICICI Lombard General Insurance Company Limited 5.7 4.8
ICICI Prudential Life Insurance Company Limited 2.5 2.1
ICICI Home Finance Company Limited, ICICI Lombard General Insurance ICICI Securities Primary Dealership Limited 0.1 0.1
Company Limited, ICICI Prudential Asset Management Company Limited,
Other current assets *545.9 - - -
ICICI Prudential Life Insurance Company Limited, ICICI Securities Primary
Receivables - -
Dealership Limited, ICICI Venture Funds Management Company Limited,
ICICI Prudential Trust Limited ICICI Prudential Life Insurance Company Limited 17.7 0.3
ICICI Lombard General Insurance Company Limited 1.1 -
C. Associate of Holding Company : ICICI Foundation for Inclusive Growth. ICICI Prudential Asset Management Company Limited 22.6 2.1
D. Key Management Personnel ICICI Home Finance Company Limited 0.2 3.9
a) Ms. Shilpa Kumar Managing Director & CEO (from November 1, 2016) ICICI Securities Primary Dealership Limited 2.1 -
b) Mr. Anup Bagchi Managing Director & CEO (till October 31, 2016) ICICI Venture Funds Management Company Limited
c) Mr. Ajay Saraf Executive Director ICICI Venture Funds Management Company Limited - 9.5
Accrued income 8.6 10.7
The following transactions were carried out with the related parties in the ordinary ICICI Lombard General Insurance Company Limited 0.6 0.7
course of business. ICICI Prudential Life Insurance Company Limited 33.7 118.2
(` in million) ICICI Prudential Asset Management Company Limited 1.9 8.8
ICICI Home Finance Company Limited 0.1 3.2
Holding Fellow Subsidiary
Company Company ICICI Venture Funds Management Company Limited - 0.3
Nature of Transaction
March 31, March 31,
31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 ` 0.0 million indicates values are lower than ` 0.1 million, where applicable
Income from services and brokerage (commission and fees) 257.5 399.6 The Group has contributed ` 86.8 million (Previous Year ` 49.0 million) to the corpus
ICICI Home Finance Company Limited 1.9 28.7 of ICICI Foundation for Inclusive Growth as part of the CSR expenditure.
ICICI Prudential Life Insurance Company Limited 513.2 733.3
During the year ended March 31, 2018, the Company completed the Initial Public
ICICI Securities Primary Dealership Limited 3.5 1.2
Offering (IPO) through an offer for sale of 66,925,305 equity shares of ` 5 each at
ICICI Lombard General Insurance Company Limited 9.1 9.3
a price of ` 520 per equity share, by ICICI Bank Limited, the Holding Company,
ICICI Prudential Asset Management Company Limited 183.6 76.7
aggregating upto ` 34,801.2 million. As the IPO was through an offer for sale, the
ICICI Prudential Trust Limited - Company did not receive any proceeds from the offer and the proceeds were paid
ICICI Prudential Trust Limited to ICICI Bank Limited. Hence the same has not been disclosed under related party
ICICI Venture Funds Management Company Limited 0.5 13.5 disclosure.
ICICI Investment Management Company Limited - -
ICICI Bank UK PLC - - *The expenses incurred by the Company in relation to the proposed IPO amounting
Interest income 86.9 216.7 to ` 545.9 million during the year ended March 31, 2018 is reimbursable by ICICI Bank
Staff expenses 12.6 13.0 Ltd and it is forming part of other current assets.
ICICI Securities Primary Dealership Limited (0.2) (0.0)
Key Management Personnel
ICICI Prudential Life Insurance Company Limited 3.5* 2.4
ICICI Lombard General Insurance Company Limited 92.1 83.0 The details of compensation paid for the year ended March 31,2018
ICICI Prudential Asset Management Company Limited (0.1) -
Operating expenses 633.1 526.2 Year ended Year ended
ICICI Investment Management Company Limited Key Management Personnel March March
Other expenses 211.1 154.9 31, 2018 31, 2017
ICICI Lombard General Insurance Company Limited 3.6 3.2 1) Shilpa Kumar, MD & CEO (From November 1, 2016) 31.7 9.8
ICICI Securities Primary Dealership Limited 1.0 1.2
2) Ajay Saraf, Executive Director 28.4 40.5
ICICI Prudential Life Insurance Company Limited 1.8 2.9
Finance cost 9.5 11.4 3) 
Anup Bagchi, MD & CEO (Till October 31, 2016) 8.5 28.4
Proposed dividend - The compensation paid includes bonus, long term incentives and contribution to
Dividend paid 1,771.8 2,050.3 provident fund.
ICICI Home Finance Company Limited - -
Purchase value of bond - - During the year ended March, 2009, the Company had paid managerial remuneration
ICICI Securities Primary Dealership Limited - 66.4 which was in excess of the limits specified by the relevant provisions of the Companies
Sale value of bond - - Act, 1956. The Company had made an application to the appropriate regulatory
ICICI Securities Primary Dealership Limited - - authorities in this regard, for payment of such excess remuneration paid to managerial
personnel. The limits specified by the Companies Act, 1956 would be ` 4.4 million.
` 0.0 million indicates values are lower than ` 0.1 million, where applicable The Company has received response in respect of Mr. A Murugappan from the Ministry
(*) Excludes an amount of ` 3.5 million (March 31, 2017 : ` Nil), received as premium of Corporate Affairs on April 21, 2011 and has sought clarifications on the same vide letter
by ICICI Prudential Life Insurance Company Limited from customers of the Group dated May 24, 2011 and letter dated February 8, 2012. During the quarter ended March
under the Group Insurance Policy. The premium is paid by the customers directly to 31, 2018, the company recovered the amount which was due from Mr. A Murugappan
ICICI Prudential Life Insurance Company Limited. in line with communication dated Feb 8, 2012. The Company has communicated the
recovery to the Ministry of Company Affairs vide letter dated April 5,2018.

76
notes
forming part of the accounts Continued
30. Employee benefits (AS 15 Revised) vi) The following table summarizes the experience adjustments
a) Gratuity (` in million)
The following table summarizes the components of net expenses for gratuity
benefits recognised in the statement of profit and loss and the amounts Year ended
recognised in the balance sheet. March 31, March March 31, March 31, March 31,
Particulars
(` in 2018 31, 2017 2016 2015 2014
million)
Defined benefit obligation 468.3 398.6 312.5 240.8 182.5
Year ended Year ended
Particulars March March Plan assets 6.3 40.5 38.5 60.3 55.7
31, 2018 31, 2017 Surplus/(deficit) (462.0) (358.1) (274.0) (180.5) (126.8)
i) Reconciliation of defined benefit obligation Experience adjustments
(DBO) : on plan liabilities 34.5 34.9 24.8 24.1 21.0
Change in Defined Benefit Obligation Experience adjustments
Opening defined benefit obligation 398.7 312.5 on plan assets 0.6 4.4 (4.9) 10.6 1.0
Service cost 50.8 39.8 The estimates of future salary increases considered takes into account the inflation,
Interest cost 27.7 24.5 seniority, promotion and other relevant factors.
Actuarial (gain) / loss 25.4 55.5 b) Long Term Incentive Plan
Past service cost 1.4 - Liability for the scheme is determined based on actuarial valuation which has
Liabilities assumed on acquisition / (settled on been carried out using the projected accrued benefit method.
13.0 (15.7)
divestiture) Particulars For the year ended
Benefits paid (48.7) (18.0) March 31, March 31,
Total Obligation 468.3 398.6 2018 2017
Discount rate 6.80% 6.50%
Closing defined benefit obligation 468.3 398.6
Increase in Incentive amount 0.00% 0.00%

Change in Fair Value of Assets
31 Derivative instruments
Opening fair value of plan assets 40.5 38.5
The following are the details of derivative position:
Expected return on plan assets 0.9 1.3
Actuarial gain / (loss) 0.6 4.3 (` in million)
Contributions by employer - 30.0 Particulars As at March 31, 2018 As at March 31, 2017
Quantity Market Quantity Market
Assets acquired on acquisition / (settled on Value (`) Value (`)
13.0 (15.6)
divestiture) Futures :
Benefits paid (48.7) (18.0) Buy 75,000 761.4 51,000 469.1
Closing fair value of plan assets 6.3 40.5 Sell

ii) Balance sheet Options :

Net asset / (liability) recognised in the balance Call Buy 60,375 0.9
sheet: Call Sell (82,500) (2.8) (132,375) (2.7)
Present value of the defined benefit obligations (468.3) (398.6) Put Buy 75,000 11.1 101,625 4.9
Put Sell (105,000) (6.3) (197,775) (8.2)
Fair value of plan assets at the end of the year 6.3 40.5
Interest Rate
Unrecognised past service cost - 300,000 31.2
Futures (Buy)
Net Liability (462.0) (358.1)
Liability recognized in the balance sheet (462.0) (358.1)
32A. Lease
Current (79.3) (37.9)
The Group’s significant leasing arrangements are in respect of operating leases
Non-current (382.7) (320.2) for premises which are renewable on mutual consent at agreed terms. Certain
agreements provide for cancellation by either party or certain agreements
iii) Statement of profit and loss contains clause for escalation and renewal of agreements. The non-cancellable
Expenses recognised in the Statement of operating lease agreements are ranging for a period 36 to 60 months. There are
Profit and Loss: sub-lease agreements which are renewable on mutual consent at agreed terms.
The aggregate lease rentals payable are charged to the statement of profit and
Current Service cost 50.8 39.8
loss. The Group has also obtained office equipment and furniture and fixtures
Interest on defined benefit obligation 27.7 24.5 on operating lease. The lease period for these also range from 36 months to 60
Expected return on plan assets (0.9) (1.3) months.
Actuarial (gain) / loss 24.8 51.2 The following are the details of operating leases for the periods indicated..
Past service cost 1.4 - (` in million)
Total included in ‘Employee benefits expense’ 103.8 114.2 Year ended Year ended
Actual Return on Plan Assets 1.5 5.7 Particulars March March
31,2018 31,2017
A. 
Lease payments recognized in the
iv) Investment details of plan assets Statement of Profit and Loss during the year
Insurer Managed Funds 85.00% 97.00% - Minimum lease payments 573.9 626.3
 Others 15.00% 3.00% - Contingent Rent - -
Sub-lease payments received/receivable
v) Assumptions recognized in the statement of profit and 31.2 25.0
loss during the period
Interest rate (p.a.) 7.30% 6.75% Total Minimum Lease Payments under
B) 
Salary escalation rate (p.a.) 7.00% 7.00% non cancellable operating leases for each
Estimated rate of return on plan assets (p.a.) 8.00% 8.00% of the following periods :
Minimum Lease Payments :
The Group expects to contribute ` 20.0 million (March 31, 2017 : ` 20.0 million) to
- Not later than one year 139.6 125.2
Gratuity Fund in 2018 - 2019
- Later than one year but not later than five
The expected rate of return on plan assets is based on the expectation of the 540.8 511.6
years
average long term return expected on investments of the fund during the - Later than five years 136.8 263.0
estimated term of the obligation.

77
 notes
forming part of the accounts Continued
32-B Specified Bank Notes (SBN) held and transacted
The details of Specified Bank Notes (SBN) held and transacted during the period November 8, 2016 to December 30, 2016 are as provided in the table below -
Year ended
Specified Bank Other Denomination Notes Total
Particulars
Notes
Closing cash in hand as on November 8, 2016 - - -
Add : Permitted receipts - 0.0 0.0
Less : Permitted payments - - -
Less : Amount deposited in Banks - (0.0) (0.0)
Closing cash in hand as on December 30, 2016 - - -
The disclosures regarding details of specified bank notes held and transacted during November 8, 2016 to December 30, 2016 has not been made since the requirement
does not pertain to financial year ended March 31, 2018. Corresponding amounts as appearing in the audited consolidated financial statements for the period ended
March 31, 2017 have been disclosed.

(` 0.0 million indicates values are lower than ` 1 million.)

33. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is ` 17.3 million (March 31, 2017 : ` 22.5 million).
Other commitments Nil (March 31, 2017 : Nil)

34. Contingent liabilities

The following are details of contingent liabilities.
a. Direct tax matters disputed by the Company are ` 1,046.3 million (March 31, 2017 : ` 1,420.3 million).
b. Indirect tax matters disputed by the Company are ` 156.1 million (March 31, 2017 : ` 156.1 million).
c. Underwriting commitment by the Group are Nil (March 31, 2017 ` 1,475.1 million).
d. Customer complaints not acknowledged as debts ` Nil (March 31, 2017 ` 32.5 million).

35. Segment reporting

The Company is presenting consolidated financial statements and hence in accordance with Accounting Standard 17 – Segment Reporting, segment information is
disclosed in the consolidated financial statements.
The Company’s business is organised into three segments as mentioned below. Segments have been identified and reported taking into account the nature of services,
the differing risks and returns and internal financials reporting. Segment revenues, results, assets and liabilities have been accounted for on the basis of their relationship
to the operating activities of the segment and amounts allocated on a reasonable basis. The Company generally accounts for Inter-segment transfers based on the
revenue sharing arrangement agreed between the segments.

Business Segment Principle activities

Investment & trading Income from treasury, investment income

Broking & commission Broking and other related activities including distribution of third party products like Mutual Fund, Life Insurance, etc. and
sales credit for referred business and interest earned on our funds used in brokerage business;

Advisory services Financial advisory services such as equity-debt issue management services, merger and acquisition advice and other related
activities  

Following are the disclosures for the three identified segments

(` in million)
Investment & trading Broking & commission Advisory services Unallocated Total

For the For the For the For the For the For the For the For the For the For the
Particulars year ended year ended year ended year ended year ended year ended year ended year ended year ended year ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

1 Segment Revenue 288.7 277.2 16,874.8 12,570.3 1,429.8 1,194.8 - - 18,593.3 14,042.3
2 Segment Results 120.4 135.4 7,754.8 4,723.6 673.5 361.4 - - 8,548.7 5,220.4
3 Income Tax expenses - - - - - - 2,971.4 1,834.5 2,971.4 1,834.5
(net of deferred tax
credit)
4 Net profit (2) - (3) 5,577.3 3,385.9
5 Segment Assets 1,397.1 1,272.0 25,400.4 17,576.7 205.7 77.1 1,798.5 1,548.6 28,801.7 20,474.4
6 Segment Liabilities 491.7 385.9 19,319.9 14,593.3 648.4 508.0 91.4 20,460.0 15,578.6
7 Cost of Acquisition of 3.8 0.4 207.4 148.3 1.8 6.3 - - 213.1 155.0
segment assets
8 Depreciation 0.4 0.4 146.8 148.1 5.8 6.3 - - 153.1 154.8

78
notes
forming part of the accounts Continued
36. Subsidiary proportion in Assets and Statement of Profit and Loss
The Company is presenting consolidated financial statements and hence in accordance with Schedule III of Companies Act 2013 – subsidiaries proportion information is
disclosed in the consolidated financial statements..
(` in million)
Name of the Entity Type Residential Net Assets (Value) As (%) of Share in Statement of As (%) of consolidated
Status consolidated Net Profit and Loss Statement of Profit
Assets and Loss
As at As at As at As at For the For the For the For the
March 31, March 31, March 31, March 31, year ended year ended year ended year ended
2018 2017 2018 2017 March 31, March 31, March 31, March 31,
2018 2017 2018 2017
1 ICICI Securities Ltd. Parent Indian 8,128.4 4,727.9 97% 96% 5,757.2 3,537.2 103% 104%
2 ICICI Securities Holding Subsidiary Foreign 32.7 32.5 1% 1% (0.4) (0.1) 0% 0%
Inc.
3 ICICI Securities Inc. Step-down Foreign 180.7 135.4 2% 3% (179.6) (151.2) -3% -4%
Subsidiary
Total 8,341.8 4,895.8 100% 100% 5,577.3 3,385.9 100% 100%

37. The Company has regrouped / reclassified previous year figures wherever necessary.

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

Chartered Accountants Chairperson Director
ICAI Firm Registration No.:101248W/W-100022 DIN - 00043617 DIN - 06559989

SHILPA KUMAR AJAY SARAF

VENKATARAMANAN VISHWANATH Managing Director & CEO Executive Director
Partner DIN - 02404667 DIN - 00074885
Membership No.:113156
RAJU NANWANI HARVINDER JASPAL
Company Secretary Chief Financial Officer
Mumbai, April 14, 2018

79
 consolidated cash flow statement
for the year ended March 31, 2018

(` in million)
For the year For the year
ended ended
March 31, 2018 March 31, 2017
A. Cash flow from operating activities
Profit before tax 8,548.7 5,220.4
Add/(Less) : Adjustments
- (Profit)/loss on sale of fixed assets 16.8 2.5
- (Profit)/loss on sale of long term investment (net) (3.6) -
- Depreciation 153.0 154.8
- Interest expense 483.3 276.7
- Foreign currency translation reserve 1.3 (4.0)
- Provision for diminution in value of non current investment - 6.7
- Bad and doubtful debts (net)
Operating profit before working capital changes 9,199.5 5,657.1
Adjustments for changes in working capital
a) (Increase)/ decrease in current assets (8,263.6) (4,872.2)
b) (Increase)/ decrease in other non-current assets 777.3 (541.4)
c) (Increase)/ decrease in long term loans and advances 17.4 13.5
d) Increase/ (decrease) in non-current liabilities 270.7 269.5
e) Increase/ (decrease) in trade payables 1,377.9 2,773.9
f) Increase/ (decrease) in other current liabilities 497.3 329.8
g) Increase/ (decrease) in short term provisions 56.0 9.1
(5,267.0) (2,017.8)
Cash generated from operations 3,932.5 3,639.3
Payment of taxes (net) (3,221.0) (1,986.1)
Net cash (used in) / generated from operating activities (A) 711.5 1,653.2

B. Cash flow from investment activities

- Purchase of investments (1.2) (15.7)
- Proceeds from sale/maturity of investments 7.1 -
- Purchase of fixed assets (223.9) (159.4)
- Proceeds from sale of fixed assets 7.4 5.5
Net cash (used in) / generated from investment activities (B) (210.6) (169.6)

C. Cash flow from financing activities

- Increase/ (decrease) in short term borrowings (net) 2,753.5 2,228.1
- Interest paid on borrowings (465.9) (279.3)
- Dividends paid (2,132.5) (2,467.7)
- Dividend distribution tax paid (91.6) (22.5)
Net cash (used in) / generated from financing activities (C) 63.5 (541.4)

Net change in cash and cash equivalents (A)+(B)+(C) 564.4 942.2

Cash and cash equivalents at the beginning of the year 1,206.3 264.1
Cash and cash equivalents at the end of the year 1,770.7 1,206.3

Components of cash and cash equivalents 0.0 -

Cash - 10.2
Cheques on hand
In current account with banks 1,302.5 1,010.1
- In India with scheduled banks 218.2 186.0
- Outside India 250.0 -
Fixed deposit with maturity less than 3 months 1,770.7 1,206.3
Total cash and cash equivalents (Note 19)

Cash and cash equivalents at the end of the year excludes:

- Fixed deposits under lien ` 13,235.8 million (March 31, 2017 ` 8,324.3 million) and
- Fixed deposits having original maturity more than 3 months ` Nil (March 31, 2017 ` 95.5 million).
“Note : The above cash flow statement has been prepared under the Indirect method as set out in Accounting Standard - 3 on cash flow statements.
` 0.0 million indicates values are lower than ` 0.1 million, where applicable

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP CHANDA KOCHHAR ASHVIN PAREKH

Chartered Accountants Chairperson Director
ICAI Firm Registration No.:101248W/W-100022 DIN - 00043617 DIN - 06559989

SHILPA KUMAR AJAY SARAF

VENKATARAMANAN VISHWANATH Managing Director & CEO Executive Director
Partner DIN - 02404667 DIN - 00074885
Membership No.:113156
RAJU NANWANI HARVINDER JASPAL
Company Secretary Chief Financial Officer
Mumbai, April 14, 2018

80
 ICICI Venture funds management company limited
30TH ANNUAL REPORT AND ANNUAL ACCOUNTS 2017-2018
Directors Auditors Registered Office
Mr. Sridar Iyengar, Chairman B S R & Co. LLP ICICI Venture funds management company limited
Mr. S. Mukherji Chartered Accountants ICICI Venture House
Mr. Marti Subrahmanyam Appasaheb Marathe Marg, Prabhadevi
Mr. Rakesh Jha Mumbai – 400 025
Prashant Purker, Managing Director & CEO Madhusudhan Nair
Mohit Batra, Executive Director Company Secretary
directors’ report
to the members
Your Directors have pleasure in presenting the Thirtieth Annual Report of ICICI
Venture Funds Management Company Limited together with the audited financial
statements of accounts for the financial year ended March 31, 2018.
1. FINANCIAL HIGHLIGHTS:
The financial performance for fiscal 2018 is summarised in the following table:
(` million)
Particulars Fiscal 2018 Fiscal 2017 % change
Profit before taxation 169.0 98.6 71.40%
Profit after taxation 111.8 92.7 20.60%
Appropriations :
General Reserve Nil Nil - for private equity have been the best out of all private capital asset classes over
Interim Dividend - -
Corporate tax on Dividend - -
Balance carried forward to next year 111.8 92.7 20.60%
The Company earned profit after tax of ` 111.8 million for the year. After
taking into account the profit / (loss) of ` 1,375.2 million brought forward, the
Company’s disposable profit stands at ` 1,487.0 million. During the financial
year 2017-18, your Company paid interim dividend of ` Nil per share.
ANALYSIS OF FINANCIAL PERFORMANCE:
During the year, your Company earned a total income of ` 940.3 million as
compared to ` 931.5 million in the previous year. Of the total income, fee
income from funds under management (including newly established funds)
was ` 677.4 million during the year, as compared to the previous year’s income
of ` 654.4 million. The income from investments in venture capital funds was
` 25.1 million during the year, as compared to the previous year’s income of
` 61.2 million.
Operating expenses were at ` 733.8 million as compared to ` 790.2 million in the
previous year. The increase in staff cost is off-set by decrease in other expenses
the decrease in the operating expenses is due to the decrease in the Company’s
borrowings and costs thereof during the year. Consequently, your Company‘s
profit before tax for the year under review was ` 169.0 million as compared
to the previous year’s profit before tax of ` 98.6 million. After providing for
tax, including deferred tax, for the current year, profit after tax was ` 111.8
million as compared to the previous year’s profit after tax of ` 92.7 million. The
Earnings per Share of your Company was ` 111.8 per share during fiscal 2018
as compared to ` 92.7 per share during the previous year.
As required under section 134 (3) of the Companies Act, 2013, there were
no material changes and commitments, affecting the financial position of the
Company which have occurred between the end of the financial year of the
Company to which the financial statements relate and the date of the report.
2. OPERATIONAL REVIEW :
YEAR IN RETROSPECT:
India’s GDP growth for FY2017-18 is expected to be 6.6%, as per advance
estimates provided by the Central Statistics Office (CSO), Ministry of Statistics
and Programme Implementation, Government of India. Robust growth in
manufacturing, acceleration in construction and a general improvement in the
investment climate marked a significant recovery in the growth momentum.
Gross fixed capital formation is estimated to grow at a robust 7.6% for FY2017-
18 driven by increased government spending. This was accompanied by core
sector growth following an uptick in sectors such as cement, electricity, coal,
refinery products and steel. However, one area of concern was the decline in
private consumption growth to 5.6% in Q3FY2017-18 from 6.6% in the previous
quarter. In general, economists believe that the current growth recovery
momentum will be sustained going forward. The IMF projects India’s GDP to
grow at 7.4% in FY2018-19 and 7.8% in FY2019-20.
The Indian alternative assets industry posted a record year both in terms of
investments and exits. Aggregate investments across various segments of
the market were estimated at USD 29 billion for CY2017 and aggregate exits
were estimated at USD 15 billion. Fund raising conditions continued to improve
during the year with the return of large foreign institutional investors to the
Indian market and the entry of large new global investors. Globally, 2017 was
by any standards a remarkable year for private equity & venture capital. Assets
under management (PE and VC) globally reached USD 2.83 trillion as at June
2017, a new record, and an increase of nearly 10% from 2016. Horizon returns
the three, five and 10 year periods and private equity has been the strongest
long-term performer for pension funds globally. Perhaps unsurprisingly, given
the above, investor satisfaction is close to all-time highs and the net balance of
investors planning to increase their immediate and longer-term allocations to
the asset class is at record levels. The now-established virtuous circle of ‘strong
fundraising + deal flow + exits’ – leading to a massive net flow of cash back
to LPs, with distributions in excess of cash calls – continued to play out. As
a consequence, it is also unsurprising that 2017 proved to a banner year for
private equity fundraising, with not only a record USD 453 billion raised globally,
but also a strong majority of these funds closing at or above their targets and
relatively quickly, especially in the US and China which continued to remain the
two strongest markets for PE and VC.
Your Company was conferred with two industry awards during the year which
reflected its overall achievements: (A) Newscorp VC Circle’s Hall of Fame-Indian
Fund Manager of the Year and (B) ASSOCHAM’s Capital Markets Excellence –
Venture Fund of the Year.
PORTFOLIO AND FUND STRATEGY:
As on March 31, 2018, your Company had ten funds under management/advice
across four asset classes – Private Equity, Real Estate, Infrastructure and Special
Situations.
(A) PRIVATE EQUITY:
India Advantage Fund Series 1 (IAF Series 1)
IAF Series 1 has been largely exited with only one investment pending to be
exited. The Fund has achieved a realized gross Internal Rate of Return (IRR) of
approximately 47.8% and a Multiple of Capital Employed (MoC) of 3.3 times
based on exits till date.
India Advantage Fund Series 2 (IAF Series 2)
The Company is working on winding down the legal entities of the Fund which
will require resolution of pending tax matters and other regulatory and statutory
pre-requisites to termination of the fund entities.
India Advantage Fund Series 3 (IAF Series 3)
Having concluded its investments in nine portfolio companies (eight of them
being unlisted at the time of making investments) and having initiated exits
from the portfolio in previous years, during the year your Company was
focused on initiating and concluding further exits from the portfolio. Your
Company successfully concluded full exit from one company and full exit from
the substantial residual holding of the fund in a second company resulting in
aggregate realizations of ` 4.51 billion to the fund and thereby increasing the
aggregate exit tally in this fund to four full exits. Your Company initiated and
reached advanced stages of exits in two other companies and completed the
81
 directors’ report
creation of a liquidity pathway in a third company through its merger into a
listed company. Your Company expects to make significant progress on further
exits in this Fund during the coming financial year.
India Advantage Fund Series 4 (IAF Series 4)
Your Company concluded the final closing of this fund with the participation
of some global investors, some of whom are first time investors with your
Company. Across various legal entities in this family of funds, the capital
available is about USD 350 million including about USD 250 million in blind pool
commitments and an additional USD 100 million in the form of co-investment
capital from select large investors in the fund. During the year, your Company
concluded three new investments from this fund aggregating to investment
commitments of ` 3.75 billion and taking the overall portfolio size of the fund to
six companies. These investments were made in some of the fastest growing
sectors of the Indian economy such as branded apparel retail, media/digital
in-cinema advertising and banking. Your Company continues to develop an
investment pipeline for this fund.
Emerging India Fund (EIF)
Following the successful integration of the investment management operations
of Emerging India Fund into the Private Equity vertical of your Company in the
previous year, your Company continued to focus on exits from the residual
portfolio of this fund during the year. Consequently, your Company has initiated
exits in the remaining three companies including one company which was
partially exited in the previous year. The term of the fund was extended by one
year upto September 2018.
(B) REAL ESTATE:
India Advantage Fund III and IV (IAF III and IAF IV, and together referred to as
IAF Real Estate Series 1)
During the year, your Company continued to focus on progress in the projects
and exits from the funds’ investments in the portfolio companies. The funds
concluded exits from the investments in two more portfolio companies and one
out of three Special Purpose Vehicles holding land parcels in Chennai (“Chennai
SPV”). The funds are at an advanced stage of negotiating exits from another
portfolio company and the second Chennai SPV. The funds have also appointed
investment bankers / international property consultants to identify potential
buyers for the funds’ investment in another portfolio companies and the third
Chennai SPV and have held discussions with a few parties in this regard. During
the year, the funds obtained approval from their investors for extension of the
life of the funds.
India Advantage Fund Real Estate Series 2 (IAF RE S2)
The Company is working on winding down the legal entity of the fund.
India Real Estate Investment Fund
During the year, your Company launched a new fund called India Real Estate
Investment Fund (iREIF) which was registered with SEBI as a Category I
AIF-Infrastructure Fund. iREIF is focused on debt/mezzanine type financing
opportunities in the affordable housing market. The first closing of this Fund
was concluded in a relatively short span of time after launch i.e. in January
2018 with aggregate investor commitments of ` 3.45 billion. Subsequently,
the fund has received further participation and indications of interest for an
additional amount of about ` 1.30 billion and therefore further fund closings
are expected shortly. The fund has received strong interest from existing as
well as new investors including many insurance companies. The fund has a
CARE AAA rating. In parallel, your Company has initiated work on developing
an investment pipeline for this fund and the initial portfolio is expected to be
created in the coming year.
(C) INFRASTRUCTURE:
Resurgent Power Ventures Pte Ltd. (“RPV”) is a Power Platform set up in
Singapore to facilitate investment in power projects in India in the coming
two-three years, which are either in advanced stages of construction & near
operational readiness or operating. Your Company is an Advisor to RPV along
with The Tata Power Company Ltd. (TPC). RPV’s investment thesis targets
acquisition of controlling stakes of power generation (thermal & hydro power)
and transmission assets in India. RPV is co-sponsored by Tata Power and
ICICI Bank and also has commitments from Caisse de dépôt et placement du
Québec (CDPQ) of Canada, Kuwait Investment Authority (KIA) and State General
Reserve Fund (SGRF) of the Sultanate of Oman, which are some of the largest
investors globally. RPV has an initial capital of USD 843 million which can be
upsized going forward depending on market opportunities. RPV is in various
stages of due diligence, discussions, analysis and negotiation on multiple assets
across power generation and transmission sectors.
(D) Special Situations Fund:
AION PE Fund (AION) is a Special Situations Fund where your company is a
Strategic Advisor along with Apollo Global Management, one of the world’s
82
Continued
largest alternative asset managers with an AUM of about USD 250 billion. AION
is one of the largest India focused PE funds raised in recent years and has
commitments from a number of highly reputed international investors.
During the year, two new investments were committed from the Fund taking
its overall portfolio to nine companies and a tenth investment reached very
advanced stages of NCLT approvals which would form amongst the first few
large asset resolutions under the new insolvency and bankruptcy framework
adopted by India. The first investment was in media company (which is awaiting
regulatory approvals before funding) and the second was in a logistics company
which has been fully funded . During the year, AION successfully concluded full
or near complete exits from three portfolio companies thereby taking the overall
exit (full/partial) tally to four companies (60%+ of the invested capital). This is
in addition to a regular yield it provides to its investors from coupon payments
from its underlying investments. AION continues to be focussed on providing
regular return of capital to its investors. During the year, your Company also
initiated preparatory work for the successor fund which is proposed to be
launched in the coming year.
(E) FUND RAISING:
During the year, your Company successfully concluded fund raising efforts for
the fourth private equity fund (India Advantage Fund Series 4) which achieved
its final closing at USD 350 million (including co-investment capital) and
successfully initiated fund raising efforts for the third real estate fund (iREIF)
which achieved a quick first closing at ` 3.45 billion with further visibility at
about ` 4.75 billion.
With these successful fund raising initiatives, your Company’s aggregate fund
raising tally across all verticals rose to a market leading figure of close to USD 3
billion since 2009 (across 6 new fund closings) making it amongst the largest fund
raising outcomes for any alternative asset manager in India during this period. In
the process, your Company also became one of India’s truly diversified, multi-
strategy alternative asset managers and also the largest with a historical AUM
raised since 2002 of over USD 4.4 billion and historical AUM since inception of
about USD 5 billion (including the VC era of your Company). With funds available
for investment of over USD 1.5 billion across its various funds and verticals,
your Company continues to remain focused on investing in quality investment
opportunities across a diverse spectrum of sectors and strategies in the Indian
alternative assets market during the coming year and beyond.
(F) OUTLOOK:
The Indian alternative investment industry continues to grow by leaps and
bounds. Your Company is well placed to leverage its leadership position in
this market, both in its existing verticals as well as potential new investment
strategies going forward. Given the significant capital available with your
Company across various capital pools, your Company is well placed to leverage
on a wide array of investment opportunities across various segments of the
Indian alternative investment market during the coming year.
3. PUBLIC DEPOSITS :
The Company has not accepted any deposit from the public during the year
under review.
4. DIRECTORS :
During the year under review, the term of Mr. H. N. Sinor, Independent Director
and Chairman ended on July 26, 2017 and Mr. Sridar Iyengar was appointed
as Chairman of the Board with effect from July 27, 2017. Mr. S. Mukherji was
appointed as Chairman of the Audit Committee with effect from July 25, 2017.
Mr. Marti G. Subrahmanyam was appointed on the Board as an Additional
Director / Independent Director with effect from July 25, 2017.
As per Section 152 of the Companies Act, 2013, Mr. Rakesh Jha retires by
rotation at the ensuing AGM of the Company and, being eligible, offers himself
for re-appointment.
5. AUDITORS :
 Pursuant to the resolution passed by the Members at the Annual General
Meeting (AGM) held on July 02, 2018, the Board of Directors recommend
your approval for ratification of appointment of M/s. B S R & Co LLP, Chartered
Accountants, Bangalore (Firm Registration Number: 101248W/W-100022),
as statutory auditors of the Company, as per the provisions of Section 139 of
the Companies Act, 2013 read along with the Companies (Audit and Auditors)
Rules, 2014, to hold the office from the conclusion of ensuing AGM till the
conclusion of the Thirty First (31st) AGM of the Company to be held in the year
2019 (subject to the receipt of consent and eligibility certification and ratification
of their appointment at every AGM). The proposal for the ratification of their
appointment has been included in the Notice convening the ensuing AGM
for your approval. The Auditors have indicated their willingness to get their
appointment approved by the members. You are requested to approve their
appointment for audit of the accounts of the Company for the Financial Year
ending March 31, 2019.
directors’ report
6. FOREIGN EXCHANGE EARNINGS AND OUTGO :
The Foreign Exchange earned in terms of actual inflows during the year and
the Foreign Exchange outgo during the year in terms of actual outflows is
given below:
Sr. Particulars Foreign Exchange Foreign Exchange
No. earned in terms outgo during the
of actual inflows year in terms of
during the year actual outflows
1 Foreign Currency Inflow 203.0
2 Foreign Currency outflow - 5.4
7. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
Since your Company does not own any manufacturing facility, the disclosure
of information on other matters required to be disclosed in terms of Section
134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies
(Accounts) Rules, is not applicable and hence has not been given.
8. PERSONNEL :
Information required to be disclosed in accordance with Rule 5(2) and Rule 5(3)
of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, forming part of the Directors’ Report for the year ended March 31,
2018 is not applicable to the Company.
9. EMPLOYEE STOCK OPTION SCHEME :
The Company has not issued any Employee Stock Options during the year
under review.
10. AUDIT COMMITTEE :
 The Audit Committee comprises of Mr. S. Mukherji – Chairman, Mr. Sridar
Iyengar, Mr. Rakesh Jha and Mr. Marti G. Subrahmanyam. During the year,
the Audit Committee was reconstituted in view of Mr. H. N. Sinor’s term
as an Independent Director of the Company ending on July 26, 2017 and
Mr. Marti Subrahmanyam and Mr. Rakesh Jha were inducted as Members of
the Audit Committee.
During fiscal 2018, the Audit Committee met on April 13, 2017, June 21, 2017,
July 25, 2017, October 16, 2017, January 18, 2018 and January 18, 2018 (non
agenda) i.e. six (6) times (excluding certain resolutions passed by circulation
). The Committee meets, inter alia, to review the accounts of the Company
and to discuss the audit findings and recommendations of the internal and
statutory auditors.
11. CORPORATE SOCIAL RESPONSIBILITY :
The Corporate Social Responsibility (CSR) Committee comprises of Mr. Sridar
Iyengar as Chairman, Mr. S. Mukherji, and Mr. Prashant Purker. During the year,
the CSR Committee was reconstituted in view of Mr. H. N. Sinor’s term as an
Independent Director of the Company ending on July 26, 2017 and Mr. Purker
was inducted as a Member of the CSR Committee.
During fiscal 2018, the CSR Committee met twice i.e. on July 25, 2017 and
January 18, 2018.
The CSR Policy of the Company is available on the website of the Company.
The disclosure of contents of the CSR Policy as per Rule 9 of the Companies
(Accounts) Rules and annual report on CSR activities as required under Section
135 of the Companies Act, 2013 read with Rule 9 of the Companies (Corporate
Social Responsibility) Rules, 2014, as amended, forming part of the Directors’
Report for the year ended March 31, 2018 is enclosed as an “Annexure 1” to this
Report.
12. NOMINATION AND REMUNERATION (“NRC”) COMMITTEE :
 The NRC comprises of Mr. S. Mukherji as Chairperson, Mr. Sridar Iyengar,
Member and Mr. Marti G. Subrahmanyam, Member. During the year, the NRC
was reconstituted in view of Mr. H. N. Sinor’s term as an Independent Director
of the Company ending on July 26, 2017 and Mr. Marti Subrahmanyam was
inducted as a Member of the NRC.
During fiscal 2018, the NRC met twice i.e. on April 13, 2017 and July 25, 2017.
Your Company has formulated a Remuneration Policy for its Directors, Senior
Management and other employees containing the criteria / basis of their
appointment and remuneration including criteria for determining qualifications,
positive attributes, independence of a Director and other matters provided
under Section 178 of the Companies Act, 2013.
13. NUMBER OF MEETINGS OF THE BOARD :
During fiscal 2018, the Board of your Company met five (5) times on April
13, 2017, July 25, 2017, October 16, 2017, January18, 2018, January18, 2018
(Strategy Meeting).
Continued
14. EXTRACT OF ANNUAL RETURN :
The extract of the annual return in Form MGT-9 as required under Section
92(3) of the Companies Act, 2013 read with Rule 12 of the Companies
(Management and Administration) Rules, 2014, as amended, forming part
of the Directors’ Report for the year ended March 31, 2018 is enclosed as an
“Annexure 2” to this Report.
15. VIGIL MECHANISM :
As required under Section 177 of the Companies Act, 2013, the Company has
- established the vigil mechanism for directors and employees to report genuine
concerns through the Whistle Blower Policy of the Company and the same has
been disclosed by the Company on its website.
The Whistle Blower Policy of the Company provides for adequate safeguards
against victimisation of persons who use such vigil mechanism and makes
provision for direct access to the chairperson of the Audit Committee of the
Company in appropriate or exceptional cases.
16. AUDITORS’ REPORT :
There are no qualifications, reservations, adverse remarks or disclaimers made
by the Statutory Auditors in their report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER
17. 
SECTION 186 OF THE COMPANIES ACT, 2013 :
There were no Loans, Guarantees and Investments covered under the provisions
of Section 186 of the Companies Act, 2013 during the year under review.
18. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES :
The particulars of contracts or arrangements with related parties in Form
AOC-2 under sub-section (1) of Section 188 of the Companies Act, 2013 read
with Rule 8 of the Companies (Accounts) Rules, as amended, forming part
of the Directors’ Report for the year ended March 31, 2018 is enclosed as an
“Annexure 3” to this Report.
19. RISK MANAGEMENT AND ADEQUACY OF INTERNAL FINANCIAL CONTROLS :
Your Company has an operational risk management policy which provides for
identification of operational risks and related controls. It has carried out self risk
assessment to identify the operational risks faced by the Company and has put
in place a mechanism to monitor the same.
Your Company has an Internal Control System commensurate with the size,
scale and complexity of its operations. The scope and authority of the Internal
Audit is defined in the Group Internal Audit Charter. To maintain its objectivity
and independence, the Internal Auditor reports to the Chairperson of the Audit
Committee of the Board.
The Internal Audit monitors and evaluates the efficacy and adequacy of internal
control system in the Company, its compliance with operating systems,
accounting procedures and policies. Based on the internal audit report, process
owners undertake corrective action in their respective areas and thereby
strengthen the controls. Key audit findings and corrective actions thereon are
presented to the Audit Committee of the Board.
20. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE
COMPANY :
There are no orders passed by the regulators or courts or tribunals impacting
the going concern status of the Company.
REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF JOINT
21. 
VENTURE COMPANIES :
 There are no subsidiaries, associates and joint venture companies of the
Company which need to be reported.
22. INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013 :
There were no complaints reported under the Prevention of Sexual Harassment
of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
23. DIRECTORS RESPONSIBILITY STATEMENT :
To the best of their knowledge and belief and according to the information and
explanations obtained by them, your Directors make the following statements
in terms of Section 134(3) (c) of the Companies Act, 2013:
a) that in the preparation of the annual financial statements for the financial
year ended March 31, 2018, the applicable accounting standards have
been followed along with proper explanation and that there are no material
departures;
83
 directors’ report
Continued
b) that such accounting policies as mentioned in Note 2 of the Notes to the 24. ACKNOWLEDGEMENTS :
Financial Statements have been selected and applied consistently and
The Board of Directors of your Company wishes to acknowledge and place
judgments and estimates have been made that are reasonable and prudent
on record its sense of appreciation for the commitment, dedication and
so as to give a true and fair view of the state of affairs of the Company as
professionalism of the employees of the Company. The Board also wishes
at March 31, 2018 and of the profit of the Company for that financial year
to thank ICICI Bank Limited, its parent company, other group companies,
ended on that date;
regulatory authorities and the Government for their co-operation and support.
c) 
that proper and sufficient care has been taken for the maintenance The Board is also grateful to the investors of the Funds managed and advised
of adequate accounting records in accordance with the provisions of by the Company for their continued trust and support.
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; For and on behalf of the Board of Directors
ICICI Venture Funds Management Company Limited
d) that the annual financial statements have been prepared on a going concern
basis; and

e) that systems to ensure compliance with the provisions of all applicable laws Sridar Iyengar
were in place and were adequate and operating effectively. Mumbai, April 16, 2018 Chairman

Annexure 1
Annual Report on Corporate Social Responsibility (CSR) Activities:
1. A brief outline on the Company’s CSR Policy, including overview of projects
or programs proposed to be undertaken and a reference to the web-link to the
CSR policy and projects or programs:
Corporate Social Responsibility (CSR) has been a long-standing commitment
at ICICI Venture and the ICICI Group and forms an integral part of our activities.
The Group’s contribution to social sector development includes several
pioneering interventions, and is implemented through the involvement of
stakeholders within the Group and the broader community. ICICI Bank Limited
(parent company) established the ICICI Foundation for Inclusive Growth (ICICI
Foundation) in 2008 with a view to significantly expand the ICICI Group’s
activities in the area of CSR. Over the last few years ICICI Foundation has
developed significant projects in specific areas, and has built capabilities for
direct project implementation as opposed to extending financial support to
other organizations.
The CSR Policy of ICICI Venture sets out the framework guiding the CSR
activities. The CSR Policy also sets out the rules that need to be adhered to
while taking up and implementing CSR activities.
The CSR Committee is the governing body that will articulate the scope of CSR
activities for ICICI Venture and ensure compliance with the CSR Policy.
The CSR Committee would comprise of three or more Directors including at
least one Independent Director.
The Company’s CSR activities are largely focused in the areas of education,
health, skill development & sustainable livelihoods and financial inclusion,
support employee engagement in CSR activities, any specific needs such as
natural disasters, through financial and logistical support and other activities as
the Company may choose to select in fulfilling its CSR objectives.
The CSR policy, as approved by the Committee is posted to the Company’s
website. Web-link to the Company’s CSR policy: http://www.iciciventure.com/
about_social.php
2. The composition of the CSR Committee:
The Company’s CSR Committee comprises of three Directors as follows:
• Mr. Sridar Iyengar, Chairperson
• Mr. S. Mukherji, Member
• Mr. Prashant Purker, Member
The Terms of Reference of CSR Committee include the following:
• Formulate and recommend to the Board the CSR Policy and any amendments
thereto;
• Indicate the activities to be undertaken by ICICI Venture as specified in the
Act;
• Review and recommend the CSR plan to the Board;
• Monitor the CSR activities and compliance with the Corporate Social
Responsibility Policy (CSR Policy).
3. Average net profit of the Company for last three financial years:
The average net loss of the Company for the last three financial years calculated
as specified by the Companies Act, 2013 was ` 83.9 million.
4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above)
The prescribed CSR expenditure requirement for FY 2018 was NIL. However,
the CSR Committee recommended a contribution of ` 1 million towards CSR
activities.
5. Details of CSR spent during the financial year.
(a) Total amount to be spent for the financial year:
Total amount to be spent towards CSR during FY 2018 was ` 1 million
(b) Amount unspent, if any – NIL

(c) Manner in which the amount spent during the financial year is detailed below:
(1) (2) (3) (4) (5) (6) (7) (8)
S. No. CSR Project or Sector in which Projects or programs Amount outlay Amount spent on the Cumulative Amount spent:
activity identified the project is (1) Local area or other (Budget) project projects or programs Expenditure Direct or through
covered (2) Specify the State and district where or programs wise Sub heads: upto the implementing
projects or programs was undertaken (1) Direct expenditure on reporting period agency
project or programs
(2) Overheads
1 Projects of ICICI Promoting Pan-India 10,00,000 10,00,000 1,00,25,050 Amount spent
Foundation for education, through ICICI
Inclusive Growth awareness, Foundation for
employment Inclusive Growth. The
enhancing Foundation was set
vocational skills up in 2008 to focus
and livelihood on activities in the
enhancement area of CSR
projects
Total 10,00,000 10,00,000 1,00,25,050
* Give details of implementing agency.
6. In case the company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company shall provide the
reasons for not spending the amount in the Board report. – NA
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with CSR objectives and the CSR Policy of the company.

Prashant Purker Sridar Iyengar

MD & CEO Chairman - CSR Committee

84
directors’ report
Continued

Annexure 2
FORM NO. MGT - 9
EXTRACT OF ANNUAL RETURN II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:
AS ON THE FINANCIAL YEAR ENDED ON MARCH 31, 2018 All the business activities contributing 10 % or more of the total turnover of the
Company shall be stated:-
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
Sr. Name and Description of main NIC Code of the % to total
I. REGISTRATION AND OTHER DETAILS: No. products / services Product / service turnover of the
company
CIN U72200MH1989PLC166901 1 Asset Management Services 65999 85.6%
Registration Date January 5, 1988 2 Others 74999 14.4%
Name of the Company ICICI Venture Funds Management Company Limited
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
Category / Sub-Category Company having Share Capital
of the Company Name and Address CIN/GLN Holding/ % of Applicable
of the Company Subsidiary/ shares Section
Address of the ICICI Venture House, Ground Floor, Appasaheb
Associate held
Registered office and Marathe Marg, Prabhadevi, Mumbai - 400 025.
contact details Tel. No. 022 – 6655 5050 ICICI Bank Limited, L65190GJ1994PLC021012 Holding 100% 2(46)
ICICI Bank Tower,
Whether listed company No
Near Chakli
Name, Address and 3i Infotech Limited, Tower # 5, 3rd to 6th Floor, Circle,Old Padra
Contact details of International Infotech Park, Vashi, Road, Vadodara,
Registrar and Transfer Navi Mumbai - 400 703. Tel. No. 022 - 6792 8070 Gujarat – 390007
Agent, if any

85
 directors’ report
Continued
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding

Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
during the
year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoters
(1) Indian
a) Individual/HUF
b) Central Govt
c) State Govt (s)
d) Bodies Corp.
e) Banks / FI 999,994 6 1,000,000 100% 999,994 6 1,000,000 100% -
f) Any Other
Sub-total (A) (1):- 999,994 6 1,000,000 100% 999,994 6 1,000,000 100% -
(2) Foreign - - - - - - - - -
a) NRIs - Individuals
b) Other – Individuals
c) Bodies Corp.
d) Banks / FI
e) Any Other….
Sub-total (A) (2):- - - - - - - - - -
Total shareholding of Promoter (A) = (A) 999,994 6 1,000,000 100% 999,994 6 1,000,000 100% -
(1)+(A)(2)
B. Public Shareholding - - - - - - - - -
1. Institutions
a) Mutual Funds
b) Banks / FI
c) Central Govt
d) State Govt(s)
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) Foreign Venture Capital Funds
i) Others (specify) – unlisted public
companies
Sub-total (B)(1):-
2. Non-Institutions
a) Bodies Corp.
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders holding nominal
share capital upto ` 1 lakh
ii) Individual shareholders holding
nominal share capital in excess of ` 1 lakh
c) Others (specify)
Sub-total (B)(2):-
Total Public Shareholding
(B)=(B)(1)+(B)(2)
C. Shares held by Custodian for GDRs NA
& ADRs
Grand Total (A+B+C) 999,994 6 1,000,000 100% 999,994 6 1,000,000 100% NIL

86
directors’ report
Continued
ii) Shareholding of Promoters :

Sr. Shareholder’s Shareholding at the beginning of the year Share holding at the end of the year
No. Name

No. of Shares % of total Shares %of Shares No. of Shares % of total Shares %of Shares % change in share
of the company Pledged / encum- of the company Pledged / encum- holding during the
bered to total bered to total year
shares shares
1 ICICI Bank 1,000,000 100% - 1,000,000 100% - -
Limited
(along with its
nominees)
Total 1,000,000 100% - 1,000,000 100% - -

iii) Change in Promoters’ Shareholding ( please specify, if there is no change) – No change in the Promoters’ Shareholding in the Company

Sl. Shareholding at the Cumulative Shareholding

No. beginning of the year during the year
No. of % of total shares of No. of % of total shares
shares the company shares of the company
At the beginning of the year 1,000,000 100% 1,000,000 100%
Date wise Increase / Decrease in
Promoters Share Holding during
the Year specifying the reasons for
Not Applicable
increase / decrease (e.g. allotment /
transfer / bonus/
sweat equity etc):
At the End of the year 1,000,000 100% 1,000,000 100%

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl. Shareholding at the Shareholding at the end of

No. beginning of the year the year
No. of % of total No. of % of total
For Each of the Top 10 Shareholders shares shares of the shares shares of the
company company
At the beginning of the Year - - - -
Date wise Increase / Decrease in Share holding during the Year specifying the reasons for increase /
- - - -
decrease (e.g. allotment / transfer / bonus / sweat equity etc):
At the End of the year
- - - -
(or on the date of separation, if separated during the year)

v) Shareholding of Directors and Key Managerial Personnel:

Sl. Shareholding at the Cumulative Shareholding

No. beginning of the year during the year

No. of % of total shares of the No. of % of total shares of the

For Each of the Directors and KMP shares company shares company

At the beginning of the year

Date wise Increase / Decrease
in Share holding during the Year None of the Directors hold shares in the Company.
specifying the reasons for increase KMP is not applicable to the Company.
/ decrease (e.g. allotment / transfer
/ bonus / sweat equity etc):
At the End of the year

87
 directors’ report
Continued
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` Million)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 1,177.7 Nil Nil 1,177.7
ii) Interest due but not paid Nil Nil Nil Nil
iii) Interest accrued but not due 6.3 Nil Nil 6.3
Total (i+ii+iii) 1,184.0 Nil Nil 1,184.0
Change in Indebtedness during the financial year
• Addition 420.4 Nil Nil 420.4
• Reduction (1,067.5) Nil Nil (1,067.5)
Net Change (647.1) Nil Nil (647.1)
Indebtedness at the end of the financial year
i) Principal Amount 534.0 Nil Nil 534.0
ii) Interest due but not paid Nil Nil Nil Nil
iii) Interest accrued but not due 2.9 Nil Nil 2.9
Total (i+ii+iii) 536.9 Nil Nil 536.9

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
SI. Particulars of Remuneration Total Amount (`)
No.
Mr. Prashant Purker, Mohit Batra,
Managing Director Executive Director
& CEO (WTD (WTD)
1. Gross salary 3,37,64,857 2,96,16,007
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 12,01,247 16,78,973
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -
2 Stock Option - -
3 Sweat Equity - -
4 Commission
- as % of profit
- others, specify… - -
5 Others, please specify – (Retirals & Other benefits) - -
Total (A) 3,49,66,104 3,12,94,980
Ceiling as per the Act As per Schedule V As per Schedule V
of the Act of the Act

B. Remuneration to other directors:

(` Million)
SI. Particulars of Remuneration Name of the Director Total Amount
No.
H. N. Sinor S. Mukherji Sridar Iyengar Marti Subrahmanyam
1. Independent Directors
 Fee for attending board / 0.30 0.66 0.66 0.34 1.96
committee meetings
 Commission - - - - -
 Others, please specify - - - - -

Total (1) 0.30 0.66 0.66 0.34 1.96

2. Other Non-Executive Directors
 Fee for attending board /
committee meetings NIL
 Commission
 Others, please specify
Total (2) NIL
Total (B)=(1+2) 1.96

88
directors’ report
Continued
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD – Not Applicable

Sl. Particulars of Remuneration Key Managerial Personnel

No.
Total
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 - - - -
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - -
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - - -
2 Stock Option - - - -
3 Sweat Equity - - - -
4 Commission
- as % of profit - - - -
- others, specify… - - - -
5 Others, please specify - - - -

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: - NIL

Type Section of the Brief Description Details of Penalty / Authority Appeal made, if any
Companies Act Punishment/ [RD / NCLT (give Details)
Compounding / COURT]
fees imposed
A. COMPANY
Penalty Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Punishment Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Compounding Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
B. DIRECTORS
Penalty Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Punishment Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Compounding Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
C. OTHER OFFICERS IN DEFAULT
Penalty Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Punishment Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
Compounding Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

Annexure 3
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3)of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188 of the
Companies Act, 2013 including certain arms length transactions under third proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis: - NIL

2. Details of material contracts or arrangement or transactions at arm’s length basis:

ICICI Venture Funds Management Company Limited (“Company” or “ICICI Venture”) undertakes various transactions with related parties in the ordinary course of business.
The Company has a Board approved policy on related party transactions. ICICI Venture, being a subsidiary of ICICI Bank Limited, also adheres to the Group’s Arms’ Length
Policy which requires all the transactions with the Group companies to be at arm’s length. The transactions between ICICI Venture and its related parties, during the year ended
March 31, 2018, were based on the principles of arm’s length.

The details of material related party transactions at an aggregate level for year ended March 31, 2018 are as follows:

Sr. Nature of contracts / transactions Name of the related Nature of Duration of Salient terms of contracts/trans- (` million)
no party relationship contracts actions
1 Rental income ICICI Bank Limited Holding Company 3 Years At Contractual rate 59.7
2 Premium paid towards general Insurance ICICI Lombard Entities under com- Various policies Insurance of Fixed Assets, 12.0
General Insurance mon control Venture Capital Asset Protection
Company Limited Policy, hospitalization cover for
employees, etc.,
3 Gain on redemption of units India Advantage Associate Not applicable Redemption of units at Net Asset 10.0
Fund IV Value (NAV)

For and on behalf of the Board of Directors

ICICI Venture Funds Management Company Limited

Place: Mumbai Sridar Iyengar

Date: April 16, 2018 Chairman

89
 independent auditors’ report
to the members of ICICI Venture Funds Management Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of ICICI Venture Funds Management
Company Limited (“the Company”), which comprise the balance sheet as at 31 March 2018,
the statement of profit and loss and the cash flow statement for the year then ended and a
summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5)
of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial
statements that give a true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards
and matters which are required to be included in the audit report under the provisions of the
Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
 
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial controls relevant to the Company’s preparation of the financial
statements that give a true and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Company’s
Directors, as well as evaluating the overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to event or condition that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor report to the related
disclosure in the financial statement or, if such disclosures are inadequate, to modify our
opinion. Our conclusion is based on the audit evidence obtained up to the date of our audit
report. However, future events or condition may cause the Company to cease to continue
as a going concern.
annexure - a to the independent auditors’ report
The Annexure referred to in Independent Auditors’ Report to the members of ICICI Venture
Funds Management Company Limited on the financial statements for the year ended 31
March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets
by which fixed assets are verified in a phased manner over a period of two years.
In accordance with this programme, certain fixed assets were verified during
the year and no material discrepancies were noticed on such verification. In our
opinion, this periodicity of physical verification is reasonable having regard to the
size of the company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the title deeds of immovable
properties are held in the name of the Company.
(ii) The Company is an Asset Management Company (‘AMC’) and manages and advises
Venture Capital and Private Equity Funds. Accordingly, it does not hold any physical
inventories. Thus, paragraph 3(ii) of the Order is not applicable to the Company.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013 (“the Act”).
90
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to
us, the aforesaid financial statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as at 31 March 2018, and
its profit and its cash flows for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by
the Central Government of India in terms of sub-section (11) of section 143 of the Act,
we give in the “Annexure A” statement on the matters specified in the paragraphs 3
and 4 of the Order to the extent applicable.
2. As required by section 143 (3) of the Act, we report to the extent applicable that:
(a) we have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt
with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31
March 2018 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2018 from being appointed as a director in terms of
section 164 (2) of the Act;
(f)  with respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in “Annexure B”; and
(g)  with respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations
given to us:
i.  The Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer note 26.1 to the financial
statements;
ii.  The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv.  The disclosures in the financial statements regarding holdings as well as
dealings in specified bank notes during the period from 8th November 2016
to 30th December 2016 have not been made since they donot pertain to the
financial year ended 31 March 2018.
For B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W / W-100022
Sd/-
Sanjay Sharma
Partner
Bengaluru, April 16, 2018 Membership Number: 063980
(iv) The Company has not granted any loans or provided any guarantees or security to
the parties covered under Section 185 of the Act. The Company has complied with
the provisions of Section 186 of the Act in respect of loans and investments made
to the party covered under Section 186 of the Act. According to the information and
explanations given to us, the Company has not provided any guarantee or security to
the parties covered under Section 186.
(v) According to the information and explanations given to us the Company has not
accepted any deposits from the public in accordance with the provisions of sections
73 to 76 or any other relevant provisions of that on the rules framed thereunder.
Accordingly, paragraph 3(v) of the order is not applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost records under
section 148(1) of the Act for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted / accrued in the
books of account in respect of undisputed statutory dues including provident fund,
income tax, goods and services tax, service tax, cess and other material statutory
dues have been regularly deposited during the year by the Company with the
appropriate authorities. As explained to us, the Company did not have any dues
on account of employees’ state insurance, sales tax, value added tax, customs
duty and excise duty.
annexure - A to the independent auditors’ report
According to the information and explanations given to us, no undisputed
amounts payable in respect of provident fund, income tax, goods and services tax,
service tax, cess and other material statutory dues were in arrears as at 31 March
2018 for a period of more than six months from the date they became payable.
  (b) According to the information and explanations given to us, there are no dues of
goods and services tax, provident fund and cess which have not been deposited
with the appropriate authorities on account of any dispute. However, according
to the information and explanation given to us, the following dues of income tax
and service tax have not been deposited with the appropriate authorities by the
Company on account of disputes:
Name of the Nature of the Amount Period to which Forum where
statute dues (` in the amount dispute is pending
millions) relates
Income Tax Income tax 24.0 (#) 2012-2013 (Financial
Commissioner of
Act, 1961 dues year) Income-tax (Appeals)
The Finance Service tax
226.0(##) 2007-08 to 2012-13
Customs, Excise and
Act, 1994 and interest (Financial year)
Service Tax Appellate
Tribunal, Bangalore
(CESTAT)
The Finance Service tax 29.9 (###) 2013-14 to 2015-16 Customs, Excise and
Act, 1994 and interest (Financial year) Service Tax Appellate
Tribunal, Bangalore
(CESTAT)
#  Represents reduction in income tax refund claimed by the Company due to
disallowances made by the Income Tax department.
## Entire amount of ` 226.0 million has been paid under protest with CESTAT, Bangalore.
### Amount of ` 2.25 Million (7.5% of Demand) has been pre-deposited with CESTAT.
(viii) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayments of loans or borrowings to banks. The
Company did not have any outstanding loans or borrowings to government, financial
institutions or any dues to debenture holders during the year.
(ix) In our opinion and according to the information and explanations given to us, the term
loans taken by the Company have been applied for the purpose for which they were
raised. The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments).
(x) 
According to the information and explanations given to us, no material fraud by
the Company or on the Company by its officers or employees has been noticed or
reported during the course of our audit.
annexure - b to the independent auditors’ report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143
of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of ICICI Venture
Funds Management Company Limited (“the Company”) as of 31 March 2018 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria established
by the Company considering the essential components of internal control stated in
the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls
over financial reporting based on our audit. We conducted our audit in accordance with the
Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed
under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal Financial Controls and,
both issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Company’s internal financial controls system over
financial reporting.
(xi) 
According to the information and explanations given to us and based on our
examination of the records, the Company has paid remuneration in excess of the limits
prescribed by Section 197 read with Schedule V of the Act to the managing director
and executive directors amounting to ` 19.1 million for the year ended 31 March 2015,
` 40.8 million for the year ended 31 March 2016, and ` 11.6 million for the year ended
31 March 2017, without requisite approvals. The Company has reported this excess
amount as recoverable from the directors as at 31 March 2018.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) 
According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are
in compliance with Sections 177 and 188 of the Act where applicable and details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards. The details of such related party transactions have
been disclosed in the financial statements as required under Accounting Standard (AS
18), Related Party Disclosure specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014.
According to the information and explanations given to us and based on our
(xiv) 
examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not
applicable.
(xv) 
According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into
non-cash transactions with directors or persons connected with him. Accordingly,
paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank
of India Act, 1934.
For B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W / W-100022
Sd/-
Sanjay Sharma
Partner
Bengaluru, April 16, 2018 Membership Number: 063980
Meaning of Internal Financial Controls over Financial Reporting
A Company’s internal financial control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Company’s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and
Directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the Company’s assets
that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2018, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the Institute of
Chartered Accountants of India.
For B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W / W-100022
Sd/-
Sanjay Sharma
Partner
Bengaluru, April 16, 2018 Membership Number: 063980
91
 balance sheet statement of profit and loss account
as at March 31, 2018 for the year ended March 31, 2018

(` in million) (` in million)
Note As at As at Note For the Year For theYear
Particulars No. March 31, March 31, Particulars No. Ended Ended
2018 2017 March 31, March 31,
A EQUITY & LIABILITIES 2018 2017
A EQUITY & LIABILITIES
1 Shareholders' funds Revenue from operations 21 677.4 654.4
(a) Share capital 3 10.0 10.0
Other income 22 262.9 277.1
(b) Reserves and surplus 4 2,170.1 2,058.3

2,180.1 2,068.3 Total revenue 940.3 931.5

2 Non-current liabilities
(a) Long-term borrowings 5 340.3 842.8 Expenses
(b) Other long-term liabilities 6 63.9 61.7
(a) Employee benefits expense 23 526.1 383.2
(c) Long-term provisions 7 159.8 169.5
564.0 1,074.0
(b) Finance costs 24 85.8 143.6
3 Current liabilities
(a) Short- term borrowings 8 - 145.9 (c) Depreciation and
(b) Trade payables 9 amortisation expense 12 37.5 42.7
-Due to micro enterprises and small - -
enterprises (d) Other expenses 25 121.9 263.4
- Due to others 116.5 246.5
(c) Other current liabilities 10 426.3 333.0 Total expenses 771.3 832.9
(d) Short-term provisions 11 28.2 10.3
571.0 735.7 Profit / (Loss) before tax 169.0 98.6
Total 3,315.1 3,878.0
Tax expense :
B ASSETS
1 Non-current assets
(a) Tax expense for the year 51.9 28.6
(a) Property, plant & equipment 12 770.7 798.9
(b) Intangible assets 12a - 0.1 (b) (Less): Minimum Alternate Tax Credit - (22.7)
(c) Non-current investments 13 18.7 19.2
(d) Deferred tax assets (net) 26.6 37.4 42.7 (c) Deferred tax 5.3 -
(e) Long-term loans and advances 14 365.6 366.0
(f) Other non-current assets 15 51.0 32.9 57.2 5.9
1,243.4 1,259.8
2 Current assets Profit for the year 111.8 92.7
(a) Current investments 16 1,867.8 2,344.5
(b) Trade receivables 17 74.0 148.0
(c) Cash and bank balances 18 3.9 1.2
Earnings per equity share (of `10/- each)
(d) Short-term loans and advances 19 113.5 117.5 Basic and Diluted (`) 26.10 111.8 92.7
(e) Other current assets 20 12.5 7.0
2,071.7 2,618.2 Corporate information & significant
Total 3,315.1 3,878.0 accounting policies 1&2
Corporate information and significant 1&2
accounting policies Notes forming part of the financial
Notes forming part of the financial statements 3 - 26 statements 3 — 26

As per our report of even date attached For and on behalf of Board of Directors ICICI Venture Funds Management Limited

For B S R & Co. LLP Sridar Iyengar Prashant Purkar

Chartered Accountants Chairperson Managing Director & CEO
Firm registration no : 101248W/W-100022 DIN No. 00278512 DIN No. 00082481

Sanjay Sharma Madhusudhan Nair Beena M Chotai

Partner Company Secretary Chief Financial Officer
Membership no : 063980

Bengaluru, April 16, 2018 Mumbai, April 16, 2018

92
notes
forming part of the financial statements Continued
1 Corporate information: Nature of assets Estimated Estimated useful life (in
The Company is an Asset Management Company (‘AMC’) and manages and useful life years) (As envisaged by
advises Alternative Investment entities under various practices like Private (in years) Schedule II)
Equity, Real Estate, Infrastructure and Special Situation Funds. The accounts of Building 60 60
these entities are maintained separately and do not form part of the Company’s Furniture & fixtures* 5 to 7 10
financial statements. The Company is registered in Mumbai and has regional Vehicles* 5 8
office in Bangalore. Office equipment
2 Significant accounting policies: - Cell phone 3 3
2.1 Basis of accounting and preparation of financial statements - Others 10 10
The financial statements of the Company have been prepared and presented in Computers 3 3
accordance with the Generally Accepted Accounting Principles in India (Indian Intangibles - software * 2.5 3
GAAP) to comply with the mandatory Accounting Standards prescribed under 
*For these class of assets, based on internal technical assessment, the management
Section 133 of the Companies Act,2013 (“the 2013 Act”) read with Rule 7 of the believes that useful lives as given above best represent the period over which
Companies (Accounts) Rules, 2014, the provisions of the 2013 Act (to the extent management expects to use the assets. Hence the useful life of these assets is different
notified and applicable). from the useful lives prescribed under Part C of Schedule II of the Companies Act,
2013.
The financial statements have been prepared and presented on accrual basis
under the historical cost convention, except where otherwise noted. The Assets individually costing less than ` 5,000/- are fully depreciated in the year of
purchase, except assets covered under Furniture Policy.
accounting policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year. 2.9 Revenue recognition
Based on the nature of activities of the Company, the Company has determined (i) As an AMC, the Company is entitled for a Fee Income which consists of
its operating cycle as 12 months for the purpose of classification of its assets management fee as per the terms of Investment Management Agreement
and liabilities as current and non-current. (IMA) entered into Fund, advisory fees in respect of the Funds advised by
the Company, and any other fees as agreed with Funds. The fee income is
2.2 Use of estimates recognized as revenue when they contractually accrue except where the
The preparation of the financial statements in conformity with Indian GAAP management believes that there are uncertainties in its ultimate realisation,
requires the Management to make estimates and assumptions considered in in which case, they are recognised when such uncertainties cease.
the reported amounts of assets and liabilities (including contingent liabilities)
and the reported income and expenses during the year. The Management (ii) Income from Investment in Units of Venture Capital Funds and Private Equity
believes that the estimates used in preparation of the financial statements are Funds is recognized when the right to receive the same is established based
prudent and reasonable. Any revision to accounting estimates is recognised on declaration of distribution by the Venture Capital Fund and when no
in the financial statements in the year in which the changes are made, and, if significant uncertainty to the measurability or collectability exists.
material, their effects are disclosed in the notes to the financial statements.
(iii) Dividend income from investment in units of Mutual Funds and from shares
2.3 Cash flow statement of corporate bodies is recognized when the right to receive the same is
Cash flows are reported using the indirect method, whereby profit before tax established based on declaration by the Mutual Funds and Corporate bodies
is adjusted for the effects of transactions of non-cash nature and any deferrals respectively.
or accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are segregated (iv) 
Gain on sale of investments is recorded on transfer of title from the
based on the available information. Company and is determined as the difference between the sale price and
carrying value of the investment.
2.4 Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. Cash and cash (v) Rental income and other income is recognized as per contractual terms.
equivalents are short-term balances (with an original maturity of three months (vi) Interest income is recognised on time proportion basis taking into account
or less from the date of acquisition), highly liquid investments that are readily the amount outstanding and the interest rate applicable.
convertible into known amounts of cash and which are subject to insignificant
risk of changes in value. 2.10 Foreign currency transactions
Initial recognition:
2.5 Property, plant & equipment  Transactions in foreign currencies entered into by the Company are
Property, plant & equipment are stated at cost less accumulated depreciation. recorded at the exchange rates prevailing on the date of the transaction
Additions, major renewals and improvements are capitalized, while or at rates that closely approximate the rate at the date of the transaction.
maintenance and repairs are expensed. Upon disposal, the net book value of Measurement of foreign currency monetary items at the reporting date:
assets is removed and resultant gains and losses are reflected in the Statement Foreign currency monetary items (other than derivative contracts) of the
of Profit and Loss. Company outstanding at the reporting date are restated at the year-end rates.
2.6 Capital work-in-progress Exchange differences arising on settlement / restatement of foreign
Capital work-in-progress comprises of the cost of property, plant & equipment currency monetary assets and liabilities of the Company are
that are not yet ready for their intended use at the reporting date. Capital work- recognised as income or expense in the Statement of Profit and Loss.
in-progress is carried at cost, comprising direct cost and related incidental Revenue, expense and cash-flow items denominated in foreign currencies
expenses. Upon completion, these costs are transferred to the appropriate are translated using the exchange rate in effect on the date of the transaction.
category of property, plant & equipments. Transaction gains or losses realised upon settlement of foreign currency
transactions are included in determining net profit for the period in which
2.7 Intangible assets transaction is settled.
Intangible assets comprising software purchased are depreciated on a straight-
line basis over the useful life of the software up to maximum of two and half 2.11 Investments
years commencing from the month in which such software is first utilised. Investments are classified as long-term or current based on the intention of
the management at the time of purchase. Long-term investments, are carried
2.8 Depreciation and amortisation individually at cost less provision for diminution, other than temporary, in the
 Depreciation on property, plant & equipment is provided on the straight- value of such investments determined separately for each individual investment.
line method over the useful lives of assets estimated by the Management. Current investments are carried individually, at the lower of cost or fair value.
Depreciation for assets purchased / sold during a year is proportionately Cost of investments include acquisition charges such as brokerage, fees and
charged. duties.

(a) Intangible assets are amortized over their respective individual estimated 2.12 Employee benefits
useful lives on a straight-line basis, commencing from the date the asset is Employee benefits include provident fund, superannuation fund, gratuity fund
available to the Company for its use. and compensated absences.

(b) 
In respect of assets taken on lease and any improvements thereat,
depreciation is provided over the balance lease period on straight line basis.
The Management estimates the useful lives for the other Property, plant &
equipment as follows:
a Defined contribution plans
 The Company’s contribution to superannuation fund is considered as
defined contribution plan and are charged as an expense as they fall
due based on the amount of contribution required to be made and when
services are rendered by the employees.

93
 notes
forming part of the financial statements Continued

b Defined benefit plans 2.16 Impairment of assets

For defined benefit plans in the form of gratuity and exempt provident fund, The carrying values of assets / cash generating units at each reporting date are
the cost of providing benefits is determined using the Projected Unit Credit reviewed for impairment. If any indication of impairment exists, the recoverable
method, with actuarial valuations being carried out at each Balance Sheet amount of such assets is estimated and impairment is recognised, if the carrying
date. Actuarial gains and losses are recognised in the Statement of Profit amount of these assets exceeds their recoverable amount. The recoverable
and Loss in the year in which they occur. Past service cost is recognised amount is the greater of the net selling price and their value in use. Value in use
immediately to the extent that the benefits are already vested and otherwise is arrived at by discounting the future cash flows to their present value based on
is amortised on a straight-line basis over the average period until the an appropriate discount factor. When there is indication that an impairment loss
benefits become vested. The retirement benefit obligation recognised in the recognised for an asset in earlier accounting years no longer exists or may have
Balance Sheet represents the present value of the defined benefit obligation decreased, such reversal of impairment loss is recognised in the Statement of
as adjusted for unrecognised past service cost, as reduced by the fair value Profit and Loss, provided that this amount does not exceed the carrying amount
of scheme assets. that would have been determined had no impairment loss been recognised for
the asset in prior years.
c Short-term employee benefits
 The undiscounted amount of short-term employee benefits expected 2.17 Provisions and contingencies
to be paid in exchange for the services rendered by employees are A provision is recognised when the Company has a present obligation as a
recognised during the year when the employees render the service. result of past events and it is probable that an outflow of resources will be
These benefits include performance incentive and compensated required to settle the obligation in respect of which a reliable estimate can be
absences which are expected to occur within twelve months after the made. Provisions (excluding retirement benefits) are not discounted to their
end of the year in which the employee renders the related service. present value and are determined based on the best estimate required to settle
The cost of such compensated absences is accounted as under : the obligation at the reporting date. These are reviewed at each Balance Sheet
(a) in case of accumulated compensated absences, when employees date and adjusted to reflect the current best estimates. Contingent liabilities are
render the services that increase their entitlement of future compensated disclosed in the Notes.
absences; and (b) in case of non-accumulating compensated absences,
when the absences occur.” Contingent assets are not recognised in the financial statements.
d Long-term employee benefits 2.18 Service tax / Goods and Service tax - input credit
 Compensated absences which are not expected to occur within twelve Service tax / Goods and Service tax input credit is accounted for in the books in
months after the end of the year in which the employee renders the related the year in which the underlying service received is accounted and when there
service are recognised as a liability at the present value of the defined benefit is no uncertainty in availing / utilising the credits.
obligation as at the reporting date less the fair value of the plan assets out
of which the obligations are expected to be settled. The expected cost is 3 Share capital
determined by actuarial valuation using the projected unit credit method on
the additional amount expected to be paid/availed as a result of the unused Particulars March 31, 2018 March 31, 2017
entitlement that has accumulated at the Balance sheet date.
No. ` in million No. ` in miilion
2.13 Leases of shares of shares
Lease arrangements where the risks and rewards incidental to ownership of
an asset substantially vest with the lessor are recognised as operating leases. (a) Authorised
Lease rentals under operating leases are recognised in the Statement of Profit Equity shares of `10/- 20,000,000 200.0 20,000,000 200.0
and Loss on a straight-line basis. each
2.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax Total 200.0 200.0
(including the post tax effect of extraordinary items, if any) by the weighted
(b) Issued, subscribed and 1,000,000 10.0 1,000,000 10.0
average number of equity shares outstanding during the year.
fully paid-up Equity
Diluted earnings per share is computed by dividing the profit / (loss) after shares of `10/- each
tax (including the post tax effect of extraordinary items, if any) as adjusted
(All the above shares
for dividend, interest and other charges to expense or income relating to the
are held by ICICI Bank
dilutive potential equity shares, by the weighted average number of equity
Limited, the Holding
shares considered for deriving basic earnings per share and the weighted
Company and its
average number of equity shares which could have been issued on the
nominees)
conversion of all dilutive potential equity shares. Dilutive potential equity shares
are deemed converted as of the beginning of the period, unless issued at a later Total 10.0 10.0
date. In computing diluted earnings per share only potential equity shares that
are dilutive are included. (i) 
Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the year:
2.15 Taxes on income
Income tax expense comprises current tax (i.e. amount of tax for the period Particulars March 31, 2018 March 31, 2017
determined in accordance with the income tax law) and deferred tax charge
or credit (reflecting the tax, effects of timing differences between accounting No. ` in million No. ` in million
income and taxable income for the period). of Shares of Shares

Current tax Opening balance 1,000,000 10.0 1,000,000 10.0

Current tax expense is recognised on an annual basis under the taxes payable Issued/(redeemed) during
method, based on the estimated tax liability computed after taking credit for year — — — —
allowances and exemption in accordance with Indian Income-tax Act, 1961. In
case of matters under appeal due to disallowance or otherwise, full provision is Closing balance 1,000,000 10.0 1,000,000 10.0
made when the said liabilities are accepted by the Company.
(ii) Terms/rights attached to equity shares:
Deferred tax
The deferred tax charge or credit and the corresponding deferred tax The Company has only one class of Equity shares, having a par value
liabilities or assets are recognised using the tax rates that have been enacted of ` 10/-. Each holder of equity shares is entitled to one vote per share.
or substantively enacted at the balance sheet date. Deferred tax assets are The Company declares and pays dividend in Indian Rupees. The dividend
recognised only to the extent there is reasonable certainty that the assets can be proposed by the Board of Directors is subject to the approval of the
realised in future. However, where there is unabsorbed depreciation or carried shareholder in the ensuing Annual General Meeting.
forward loss under taxation laws, deferred tax assets are recognised only if
In the event of liquidation of the Company, the holders of the equity shares
there is a virtual certainty of realisation of such assets. Deferred tax assets are
will be entitled to receive any of the remaining assets of the Company, after
reviewed as at each reporting date and written down or written up to reflect the
distribution of all preferential amounts. The distribution will be in proportion
amount that is reasonable /virtually certain (as the case may be) to be realised.
to number of equity shares held by the shareholders.
Deferred tax assets and deferred tax liabilities have been offset wherever the
Company has legally enforceable right to set-off current tax assets against
current tax liabilities.

94
notes
forming part of the financial statements Continued

(iii) Details of shares held by each shareholder holding more than 5% of shares (iii) The above loans carry the following interest rate for the year ended March
31, 2018 and March 31, 2017:
a) Kotak Mahindra Bank - ranging from MCLR plus 110 basis points.
Particulars March 31, 2018 March 31, 2017
b) ICICI Bank – base rate plus 400 basis points.
No. No.
of Shares % of Shares % (iv) There are no defaults in repayment of principal or interest to Banks as at
the balance sheet date.
ICICI Bank Limited, the 1,000,000 100.0% 1,000,000 100.0%
holding company and its (v) Details of security:
nominees a)  Facilities from Kotak Mahindra Bank are secured against the first
mortgage charge over ground floor, second floor, third floor and fourth
(iv) The Company has not allotted any fully paid up equity shares by way of
floor and related parking lots situated at corporate office at ICICI Venture
bonus shares nor has bought back any class of equity shares during the
House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025.
period of five years immediately preceding the reporting date.
b) Term loan from ICICI Bank Limited was secured by Mortgage charge
4 Reserves and surplus on units of India Advantage Fund III (IAF III) purchased through the
proceeds of the borrowing, escrow Account and Debt Service Reserve
(` in million) Account (DSRA) of the Company maintained for the purpose of this
Particulars March 31, March 31, loan. As on March 31, 2018, the Company has a charge on Nil units of
2018 2017 IAF III (as on March 31, 2017 - 1,715,107 units of IAF III) towards term
(a) Capital reserve 7.8 7.8 loan and Nil units of mutual funds (as on March 31, 2017 - 22,212.2 units)
towards DSRA.
(b) General reserve 675.3 675.3
(c) Surplus in Statement of Profit and Loss During the year ended March 31, 2018, the Company has repaid entire
loan to ICICI Bank and no amount is outstanding as on date.
Opening balance 1,375.2 1,282.5
Add : Profit for the year 111.8 92.7 6 Other long-term liabilities
Closing balance 1,487.0 1,375.2
(` in million)
Total 2,170.1 2,058.3
March 31, March 31,
2018 2017
5 (i) Long-term borrowings
(a) Trade payables
(` in million)
- Due to micro enterprises and small - -
Particulars March 31, March 31, enterprises (Refer Note 26.12)
2018 2017
- Due to others
(a) Term Loan - Secured
- Related parties (Refer Note 26.8) 21.5 21.5
- From banks -
- Others 0.5 -
- From related parties (Refer Note 26.8) Nil 46.8
(b) Other Liabilities
- From others 340.3 796.0 (i) Accrued salaries and benefits 3.3 1.6
Total 340.3 842.8 (ii) Security deposits

- Related parties (Refer Note 26.8) 28.1 28.1
(ii) Details of terms of repayment in respect of the secured other long-term - Others 10.5 10.5
borrowings:
Total 63.9 61.7
(` in miilion)
Particulars Rate of No. of March 31, Rate No. of March
Interest Instalments 2018 Instalments 31, 2017 7 Long-term provisions
due after 12 (` In of due after 12 (` In
months Millions) months Millions) (` in million)
Interest
Particulars March 31, March 31,
Term loans 2018 2017
from Bank:
Provision for employee benefits:
(a) ICICI Bank - - - 13.25% 1 46.8
- Gratuity (Refer Note 26.7.2) 118.2 116.3
Ltd 1
- Compensated absences 41.6 53.2
(b) Kotak 9.25% 37 148.5 9.50% 49 189.8
Total 159.8 169.5
Mahindra
Bank Ltd 2
Current Liabilities
(c) Kotak 9.25% 6 84.4 9.50% 10 140.6
Mahindra 8 Short-term borrowings
Bank Ltd 3
(d) Kotak (` in million)
Mahindra Particulars March 31, March 31,
Bank Ltd 4 9.25% 6 69.4 9.50% 10 115.6 2018 2017
(e) Kotak Loans Repayable on demand
Mahindra - Overdraft facilities from bank (Secured) - 145.9
Bank Ltd 5 9.45% 3 38.0 9.35% 7 350.0 Total - 145.9
Total term
“Overdraft facility from Kotak Mahindra Bank carries interest of MCLR 6
loans 340.3 842.8
months+1.20% p.a. (as on March 31, 2017 - MCLR 6 months +1.20% p.a.),
- Average rate computed on the actual amount utilized. The facility is repayable on demand.
of interest 9.28% 9.61% The facility is secured by first mortgage charge over ground floor, second floor,
1
ayable at the end of third, fourth and fifth year 40%, 40% & 20% from the year of
P
third floor, fourth floor and related parking lots situated at corporate office at
disbursement i.e. June 30, 2014. The Company has prepaid entire dues as on March 31, 2018. ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025.
2
` 4.7 million payable on equated monthly instalments till April 30, 2022.
3
`14.1 million payable in equated quarterly instalments till September 30, 2020.
4
`11.6 million payable in equated quarterly instalments till September 30, 2020.
5
`12.7 million payable in equated quarterly instalments till December 03, 2020.

95
 notes
forming part of the financial statements Continued
9 Trade payables
(` in million)
Particulars March 31, March 31,
2018 2017
Trade payables:
- Due to micro enterprises and small enterprises (Refer Note 26.12) - -
- Due to others
- Related parties (Refer Note 26.8) 7.3 3.3
- Others 109.2 243.2
Total 116.5 246.5

10 Other current liabilities

(` in million)
Particulars March 31, March 31,
2018 2017
(a) Current maturities of long term debt
(Refer Note (i) below) 193.7 189.0
193.7 189.0

(b) Interest accrued but not due on term loans 2.9 6.3
(c) Income received in advance 71.7 -
(d) Other liabilities
(i) Security deposits
- Related parties (Refer Note 26.8) 0.7 0.6
(ii) Statutory dues 17.2 14.5
(iii) Accrued salaries and benefits 108.3 90.8
(iv) Cash reserve (Refer Note(ii) below) 27.5 27.5
(v) Others 4.3 4.3
232.6 144.0
Total 426.3 333.0

Note:
(i) Current maturities of long term debts, Refer Note 5 (v) - Long-term borrowing for details of security.
(ii) In accordance with the Liquidity Option offered to domestic Investors of India Advantage Fund III, ` 27.5 Million is held as Cash reserve to provide adequate cover to
the Company for any potential tax related liabilities or any other unfunded liability which may arise in India Advantage Fund III.

11 Short-term provisions
(` in million)
Particulars March 31, March 31,
2018 2017
Provision for employee benefits
- Compensated absences 28.2 10.3
Total 28.2 10.3

12 Property, plant & equipment

(` in million)
Gross block Accumulated depreciation/amortisation Net block
Particulars As at April Additions Deletions As at March As at April Additions Deletions As at March As at March
01, 2017 during during the 31, 2018 01, 2017 during during 31, 2018 31, 2018
the year year the year the year
Land - Freehold 108.3 - - 108.3 - - - - 108.3
Building ( Refer Note1 & 2) 1,364.9 - - 1,364.9 707.1 25.9 - 733.0 631.9
Furniture and fixtures 43.5 1.0 2.3 42.2 38.7 1.0 1.5 38.2 4.0
Vehicles 37.4 10.5 24.0 23.9 24.4 3.4 18.1 9.7 14.2
Office equipment 89.0 3.4 0.3 92.1 75.8 5.8 0.3 81.3 10.8
Computers 29.2 1.1 - 30.3 27.4 1.4 - 28.8 1.5
Total 1,672.3 16.0 26.6 1,661.7 873.4 37.5 19.9 891.0 770.7
Note:
1) The Company has given on lease the second floor, third floor and fourth floor of ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai (Office building). Accordingly the mentioned
floors in the Office building are owned by the Company but not used by the Company. Tangible assets also include a portion of office space given on operating lease and since this forms an integral
part of the Building occupied/used by the Company, separate details for the space leased are not available. Other than the above, all the Property, plant & equipments are owned by the Company
and used by the Company and employees of the Company.
2) Term Loan (Lease Rental Discounting), Overdraft and Term Loan availed from Kotak Mahindra Bank are secured against first mortgage charge over ground floor, second floor, third floor, fourth
floor and related parking lots situated at corporate office at ICICI Venture House, Appasaheb Marathe Marg, Mumbai.
12A Intangible assets
(` in million)
Gross block Accumulated depreciation/amortisation Net block
Particulars As at April Additions Deletions As at March As at April Additions Deletions As at March As at March
01, 2017 during during the 31, 2018 01, 2017 during during 31, 2018 31, 2018
the year year the year the year
Software * 3.1 - - 3.1 3.1 - - 3.1 -
Total 3.1 - - 3.1 3.1 - - 3.1 -
* Value is less than ` 0.1 Million.

96
notes
forming part of the financial statements Continued
12 Property, plant & equipments (Continued)
(` in million)
Particulars Gross block Accumulated depreciation/amortisation Net block
As at Additions Deletions As at As at For the For deletions As at As at
01-Apr-16 during the during the 31-Mar-17 01-Apr-16 year during the 31-Mar-17 31-Mar-17
year year year
Land - Freehold 108.3 - - 108.3 - - - - 108.3
Building ( Refer Note1 & 2) 1,364.9 - - 1,364.9 681.0 26.1 - 707.1 657.8
Furniture and fixtures 43.0 2.2 1.7 43.5 38.3 1.4 1.0 38.7 4.8
Vehicles 34.5 7.3 4.4 37.4 23.1 5.7 4.4 24.4 13.0
Office equipment 87.5 1.7 0.2 89.0 69.2 6.8 0.2 75.8 13.2
Computers 28.3 0.9 - 29.2 24.7 2.7 - 27.4 1.8
Total 1,666.5 12.1 6.3 1,672.3 836.3 42.7 5.6 873.4 798.9
Note:
1) The Company has given on lease second floor, third floor and fourth floor of ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai (Office building).
Accordingly the mentioned floors in the Office building are owned by the Company but not used by the Company. Tangible assets also include a portion of office
space given on operating lease and since this forms an integral part of the Building occupied/used by the Company, separate details for the space leased are not
available. Other than the above, all the Property, plant & equipments are owned by the Company and used by the Company and employees of the Company.
2) Term Loan (Lease Rental Discounting), Overdraft and Term Loan availed from Kotak Mahindra Bank are secured against first mortgage charge over ground floor,
second floor, third floor, fourth floor and related parking lots situated at corporate office at ICICI Venture House, Appasaheb Marathe Marg, Mumbai.

12a
Intangible assets
(` in million)
Particulars Gross block Accumulated depreciation/amortisation Net block
As at Additions Deletions As at As at For the For deletions As at As at
01-Apr-16 during the during the 31-Mar-17 01-Apr-16 year during the 31-Mar-17 31-Mar-17
year year year
Software * 3.1 - - 3.1 3.1 -* - 3.1 0.1
Total 3.1 - - 3.1 3.1 - - 3.1 0.1
* Value is less than ` 0.1 Million.

13 Non-current investments (at cost)

(` in million)
Particulars March 31, 2018 March 31, 2017
Quantity Face Value Amount Quantity Face Value Amount
` (per unit ` (per unit
/ Share) / Share)
A Trade investment - Investment in units of venture capital funds, long-
term, unquoted, fully paid up
1 India Advantage Fund S3 I-Class C units 3 - - - 5,000 100 0.5
2 India Advantage Fund S4 I - Class C units 145,000 100 14.5 145,000 100 14.5
3 India Advantage Fund S4 I - Class D units 7,250 100 0.7 7,250 100 0.7
Total (A) 15.2 15.7
B Other Investments - Investment in equity instruments, long-term,
Unquoted, fully paid up
1 Microland Limited 2,976,811 100 3.5 2,976,811 100 3.5
2 Shri Renuga Textiles Limited 1 48,674 100 - 48,674 100 -
3 ICICI Home Finance Company Ltd 2 100 10 - 100 10 -
4 ICICI Investment Management Company Limited 2 100 10 - 100 10 -
5 ICICI Trusteeship Services Limited 2 100 10 - 100 10 -
Total (B) 3.5 3.5
Total - (A+B) 18.7 19.2

Notes:
1 Shri Renuga Textiles Limited - The cost of shares held is ` 1.
2 These shares are received in capacity as a nominee shareholder for Nil consideration.
3 Classified as Current investment during the year ended March 31, 2018.

14 Long-term loans and advances

(` in million)
Particulars March 31, March 31,
2018 2017
Unsecured, considered good
(a) Prepaid expenses 4.6 5.8
(b) Minimum Alternate Tax credit entitlement 9.2 22.7
(c) Balance with government authorities 228.2 226.0
(d) Advance income tax (net of Provision for taxation ` 215.8 million; as on March 31, 2017 - ` 385.4 million) 123.6 111.5
Total 365.6 366.0

97
 notes
forming part of the financial statements Continued
15 Other non-current assets

(` in million)
Particulars March 31, March 31,
2018 2017
Unsecured, considered good
(a) Contribution to Employee Welfare Trusts 20.5 11.7
(b) Unamortised expenses
- To related parties (Refer Note 26.8) 14.1 21.2
- To others 12.5 -
(c) Advance towards investment in Alternate Investment Fund 3.9 -
Total 51.0 32.9

16 Current investments

(` in million)
Particulars March 31, 2018 Movement During the year ending March 31, 2018 March 31, 2017
Quantity Face value Amount Addition Realisation Quantity Face value Amount
` (per unit) ` (per unit)
Quantity Face value Amount Quantity Face value Amount
` (perunit) ` (per unit)

A Current portion of long-term

investments (at cost)
(i) Investment in units of venture capital
funds, (Unquoted), fully paid up:
-In related parties -Associate
(refer Note 26.8)
1 India Advantage Fund IV Class A units 8,641,653 100 688.7 - - - 3,693,364 100 294.4 12,335,017 100 983.1
2 India Advantage Fund IV Class B units 6,000 100 0.6 - - - - - - 6,000 100 0.6
-In others
3 India Advantage Fund I- Class `C' units 5,000 100 0.5 - - - - - 5,000 100 0.5
4 India Advantage Fund I-Class `A' units 747 100 0.1 - - - - - 747 100 0.1
5 India Advantage Fund I-Class`B' units 214 100 0.1 - - - - - 214 100 0.1
6 India Advantage Fund VII -Class A 23 100 - - - - - - - 23 100 -
units**
7 India Advantage Fund III -Class A units 2,790,940 100 251.2 - - - 1,104,536 100 99.5 3,895,476 100 350.7
8 India Advantage Fund III -Class B units 6,000 100 0.6 - - - - - - 6,000 100 0.6
9 India Advantage Fund RES2 -Class C 1 100 - - - - - - - 1 100 -
units
10 Emerging India Fund - Class B units** 3.75 10,000 - - - - - - - 3.75 10,000 -
11 India Advantage Fund S3 I-Class C 5,000 100 0.5 - - - - - - - - -
units***
Subtotal (i) 942.3 - 393.9 1,335.7
(ii) Investment in Compulsory Convertible
Debentures
Tellapur Technocity Pvt. Ltd ^ 471,440,277 1 235.1 - - - - - - 471,440,277 1 235.1
Subtotal (ii) 235.1 - - 235.1
Total {(i) + (ii)} 1,177.4 - 393.9 1,570.8
Less: Provision for diminution other than 89.9 89.9
temporary
Total (A) 1,087.5 - 393.9 1,480.9

^ Investments include an amount of ` 235.1 Million paid for acquiring 471,440,277 Compulsory Convertible Debentures in Tellapur Technocity Pvt. Ltd; the process for
transfer of the CCDs in the name of the Company is in progress at the reporting date.
** Value is less than ` 0.1 Million.
*** Classified as Current investment during the year ended March 31, 2018.

98
notes
forming part of the financial statements Continued
16 Current investments (CONTINUED)

(` in million)
Particulars March 31, 2018 Movement During the year ending March 31, 2018 March 31, 2017
Quantity Face value Amount Addition Realisation Quantity Face value Amount
` (per unit) ` (per unit)
Quantity Face value Amount Quantity Face value Amount
` (per unit) ` (per unit)

B Other Current Investments

Investment in mutual funds (unquoted):
1 Baroda Pioneer Liquid-Plan B Direct- - - - 57,538 1,000 110.7 57,538 1,000 110.7 - - -
Growth
2 Aditya Birla SunLife Cash Plus-Growth- 698,435 100 137.4 - - - - - - 698,435 100 137.4
Direct *
3 DSP Black Rock-Liquidity Fund-IP Growth 12,700 1,000 20.5 - - - - 1,000 - 12,700 1,000 20.5
4 DSP BlackRock Liquidity Direct Plan 21,196 1,000 39.1 2,359 1,000 5.8 2,359 1,000 5.8 21,196 1,000 39.1
Growth
5 ICICI Prudential Liquid-Regular Plan 301,744 100 48.9 - - - - - - 301,744 100 48.9
-Growth
6 ICICI Prudential Liquid -Direct Plan 387,754 100 75.6 - - - - - - 387,754 100 75.6
-Growth
7 IDFC Cash Fund -Direct Plan -Growth 24,770 1,000 36.9 9,795 1,000 20.0 9,795 1,000 20.0 24,770 1,000 36.9
8 Invesco India Liquid-Direct-Growth - - - 56,634 1,000 132.6 56,634 1,000 132.6 - - -
9 L&T Liquid Fund - Direct Plan -Growth - - - 42,951 100 99.9 42,951 100 99.9 - - -
10 LIC MF Liquid Fund-Direct Plan- 761 1,000 2.4 22,332 1,000 68.9 21,571 1,000 66.5 - - -
Growth
11 Kotak Liquid Plan A -Growth Direct 62,143 1,000 166.0 - - - - - - 62,143 1,000 166.0
12 Reliance Liquidity Fund -Direct Plan 57,283 1,000 108.8 17,669 1,000 45.0 17,669 1,000 45.0 57,283 1,000 108.8
-Growth
13 SBI Premier Liquid Fund -Direct Plan 37,977 1,000 80.5 - - - 42,474 1,000 85.7 80,451 1,000 166.2
-Growth
14 Tata Liquid Fund- Direct Plan -Growth 18,551 1,000 42.1 - - - - - - 18,551 1,000 42.1
15 UTI Liquid Cash Plan Institutional 9,840 1,000 22.1 - - - - - - 9,840 1,000 22.1
-Growth
Total (B) 780.3 482.9 566.2 863.6
Total (A) + (B) 1,867.8 482.9 960.1 2,344.5
Aggregate Value of Investments :
Aggregate cost of unquoted 1,867.8 482.9 960.1 2,344.5
investments
Provision for diminution other than 89.9 89.9
temporary
Fair value of investments in mutual 1,070.6 1,108.5
funds
*Represents lien marked units amounting to ` 37.4 Million and ` 0.1 Million in favour of India Advantage Fund I & India Advantage Fund II and India Advantage Fund VII
respectively towards collateral requirement. Refer Note 26.1 (B) (i) for details.

17 Trade receivables

(` in million)
Particulars March 31, March 31,
2018 2017
Unsecured, considered good - Less than six months 74.0 148.0
Total 74.0 148.0

18 Cash and BANK BALANCES

(` in million)
Particulars March 31, March 31,
2018 2017
(a) Cash on hand* - -
(b) Balance with banks:
- In current accounts (Refer note 26.8) 3.9 1.2
Total 3.9 1.2

Note: Of the above, the balances that meet the definition of cash and bank Balances as per AS 3 Cash Flow Statements is ` 3.9 Million (as at March 31, 2017 : ` 1.2 Million)
* Value is less than ` 0.1 Million.

99
 notes
forming part of the financial statements Continued
19 Short-term loans and advances 22 Other income
(` in million)
(` in million)
Particulars March 31, March 31,
Particulars March 31, March 31, 2018 2017
2018 2017
(a) Income from long-term investments Distribution
Unsecured, considered good from investment in units of venture capital funds
(a) Security deposits 14.5 14.5 (including gain on sale of such units) 25.1 61.2
(b) Prepaid expenses (b) Net gain on sale of current investments (others) 29.0 85.1
-To related parties (Refer note 26.8) 5.9 7.0 (c) 
Rental income from operating leases 81.3 73.8
(Refer Note - 26.5.2)
-To others 3.6 5.6
(d) Provisions no longer required written back 126.6 53.3
(c) Balance with government authorities 5.5 0.7
(e) Profit on sale of fixed assets (net) 0.1 -
(d) Recoverable from Directors #
(f) Gain on foreign exchange fluctuation (net) 0.1 -
-To related parties (Refer note 26.8) 71.5 71.5
(g) Miscellaneous income 0.7 3.7
(e) Capital advances 0.2 -
Total 262.9 277.1
(f) Other receivables 12.3 18.2
Total 113.5 117.5
23 Employee benefits expense
During the year ended 31 March 2015 and 31 March 2016, the company had
paid managerial remuneration in excess of the limits prescribed by the section (` in million)
197 read with Schedule V of the Companies Act, 2013 to its directors. The
Particulars March 31, March 31,
Company had filed waiver applications for obtaining requisite approvals from
2018 2017
the Central Government for remuneration paid in excess of the limits. Salaries and wages 477.9 308.4
During FY2016-17, the Company received a communication from the Central Contributions to provident and other funds (Refer
Government rejecting the application for waiver for the year ended March 31 Note 26.7) 26.9 53.0
2015, with a direction to recover the amounts of ` 19.1 million paid in excess Staff welfare 21.3 21.8
of the limits. The Company had filed an appeal against the rejection with the Total 526.1 383.2
Central Government.

During the previous year ended 31 March 2017, the Company received 24 Finance costs
communications from the Central Government rejecting / closing the
applications for waiver. (` in million)
However, on September 12, 2016, the Central Government issued notification Particulars March 31, March 31,
no S.O. 2922 (E), wherein it has been provided that the managerial remuneration 2018 2017
limits specified in Companies Act, 2013 are not applicable to directors who Interest expense on borrowings 85.8 137.3
are functioning in their professional capacity w.e.f. September 12, 2016.
Accordingly, the Company has reversed the excess managerial remuneration Other borrowing cost - 6.3
in the previous years up to September 12, 2016 and reported the same as a Total 85.8 143.6
recoverable from the directors.

Accordingly an amount aggregating to ` 71.5 million relating to excess

managerial remuneration paid for the years ended March 31, 2015, March 31, 25 Other expenses
2016 and the period from April 1, 2016 to September 12, 2016, is recorded as
recoverable from directors (as on March 31, 2017 ` 71.5 Million). (` in million)
Particulars March 31, March 31,

As per the Companies Amendment Act 2017 (“Amendment Act”), Section 2018 2017
197(10) of the Companies Act, 2013 has been amended. The Amendment Power charges 7.7 7.4
provides that a Company shall not be allowed to waive the recovery of any sum Rent including lease rentals (Refer Note - 26.5.1) 14.0 14.0
recoverable to it unless approved by the company by special resolution within Repairs and maintenance:
two years from the date, the sum becomes refundable. The Company proposes
- Building 18.4 16.7
to approach the Shareholders to seek their consent for waiver of recovery of the
- Others 5.3 7.9
excess managerial remuneration paid, in due course. However, since Section
197(10) of the Amendment Act is yet to be notified, the amount is shown as Insurance 1.9 1.9
recoverable from directors. Rates and taxes 0.7 0.8
Communication expenses 5.1 4.3
Travelling and conveyance 3.5 5.6
20 Other Current assets
Printing and stationery 0.5 0.6
Advertisement and business promotion 3.7 3.2
(` in million) Seminar expenses 1.3 1.2
Particulars March 31, March 31, Marketing and distribution expenses 22.7 50.9
2018 2017 Legal and professional charges 11.0 27.6
Unamortised Expense Payment to auditors:
- Statutory audit 1.0 1.0
- To related parties (Refer note no.26.8) 7.1 7.0
- Tax audit 0.1 0.1
- To others 5.4 - - Other services 0.3 0.5
Total 12.5 7.0 - Reimbursement of expenses 0.1 0.1
Recruitment and training 1.0 1.1
Memberships and subscriptions 13.7 17.5
21 Revenue from operations
Adjustment to carrying amount of investment - 89.9
(` in million) Loss on foreign exchange fluctuation (net) - 2.6
Particulars March 31, March 31, Corporate Social Responsibility 1.0 0.1
2018 2017 Miscellaneous expenses (refer Note 26.4) 8.9 8.4
Total 121.9 263.4
Fee income 677.4 654.4
Total 677.4 654.4

100
notes
forming part of the financial statements Continued
26 Other Notes
26.1 Contingent liabilities and commitments (to the extent not provided for)
A Contingent liabilities
(i) Disputed statutory dues
As at March 31, 2018, the Company has disputed tax liabilities arising from assessment proceedings relating to earlier years from the income tax authorities and
service tax authorities amounting to ` 24.0 Million (previous year ended March 31 2017 ` 24.0 Million) and ` 255.9 Million (previous year ended March 31 2017
` 226.0 Million) respectively. Of the above the disputed tax liability towards service tax authorities for ` 228.2 million has been paid under protest.

B Commitments
(i) The Company has given mutual fund units as collateral to the extent of ` 37.4 Million (as on March 31, 2017 ` 37.4 Million) to India Advantage Fund I & India Advantage
Fund II and ` 0.1 Million (as on March 31, 2017 ` 0.1 Million) to India Advantage Fund VII.

(ii) The Company had entered into an agreement for capital commitments details as at March 31, 2018 are provided below:

(` in million)
Sl. Entity Name Commitment Contribution Advance Unfunded Commitment
March 31, 2018 March 31, 2017
1 ICICI Venture Employee Welfare Trust Class A 77.2 35.6 - 37.7 45.6
(USD1,125,000) (USD545,227) (USD 579,773) (USD 703,944)
2 India Advantage Fund PE S4 I Class C 50.0 14.5 3.8 31.7 35.5
3 India Advantage Fund PE S4 I Class D 2.5 0.7 0.2 1.6 1.8
4 India Real Estate Investment Fund Class D 50.0 - - 50.0 -
5 IAF S4 I Contribution Trust Class A 45.0 13.3 - 31.7 -
(iii) The Company, Dynamic India Fund III ( DIF III) and 3 other entities has been served with a Plaint filed by 69 investors of DIF III for USD 103.6 Million before the Supreme
Court of Mauritius. DIF III is an investor in India Advantage Fund III, a Fund managed by the Company. DIF III has filed an application for stay before the Bankruptcy
Division of the Supreme Court of Mauritius on the grounds that the Suit is procedurally defective and the Original Civil Suit Division of the Supreme Court is not the
appropriate forum for hearing the Plaint. The Company along with the other defendants have supported DIF III‘s application. The Company’s legal advisers are of the
opinion that the Company has a strong defence to the plaint and the possibility of the liability crystallizing on the Company is remote.

26.2 Earnings in Foreign Currency (` in million)

(` in million) Particulars March 31, March 31,
2018 2017
Particulars March 31, March 31,
Due not later than one year - 17.4
2018 2017
Due later than one year but not later than five years - -
Fee income 247.9 211.4
Later than five years - -
Total 247.9 211.4 - 17.4

26.3 Expenditure in Foreign Currency A charge has been created ground floor, second floor, third floor and fourth
floor and related parking lots situated at corporate office at ICICI Venture
(` in million) House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, in favour
Particulars March 31, March 31, of Kotak Mahindra Bank Limited for the term loan obtained from the Bank.
2018 2017 Furthermore, a charge has been created in favour of Kotak Mahindra Bank Ltd.
Membership and subscription expenses 3.0 3.3 over the lease rental income earned from the above mentioned third and fourth
floor and related parking lots.
Marketing and distribution expenses 3.3 -
Travelling expenses 0.5 0.4 26.6 Deferred tax (Liability)/asset

Legal and professional charges 0.7 6.7 (` in million)

Particulars March 31, March 31,
Advertisement and business promotion - 0.1 2018 2017
Others 0.9 - Tax effect of items constituting deferred tax liability
Excess of depreciation/amortization on fixed (17.4) (23.1)
Total 8.4 10.5
assets under the income tax law over depreciation/

amortization provided in accounts
26.4 Miscellaneous expenses include ` 2.6 Million (previous year ended March 31, Tax effect of item constituting deferred tax asset
2017 – ` 1.8 Million), being the Company’s share of various common corporate Provision for compensated absences and gratuity 54.7 65.8
expenses incurred by ICICI Bank Limited, the holding company (refer related Net Deferred tax asset on above 37.4 42.7
party note 26.8). 26.7 Employee benefit plans
26.5.1 Lease rental expense 26.7.1 Defined contribution plans
The Company has entered into cancellable operating lease in respect of office  The Company makes Superannuation Fund contributions to defined
premises. As per the terms and conditions mentioned in the renewed lease contribution plan for qualifying employees. Under the Scheme, the Company
agreement effective December 01, 2017, the lease is renewed for a further is required to contribute a specified percentage of the payroll costs to fund the
period of seven months. The lease rentals charged to the Statement of Profit benefits. The Company recognised ` 3.0 Million (` 3.9 Million during the year
and Loss in respect of these leases amount to ` 14.0 Million (previous year ended March 31, 2017) for Superannuation Fund contributions in the Statement
ended March 31 2017 - ` 14.0 Million). of Profit and Loss. The contributions payable to the plan by the Company are at
rates specified in the rules of the schemes.
26.5.2 Lease rental income
The Company has entered into operating lease agreements for the second, third
floor and fourth floor and related parking lots of the office premises known as
ICICI Venture House situated at A.M Marg, Prabhadevi, Mumbai.

Particulars (` in million)
March 31, March 31,
2018 2017
Gross book value 615.1 615.1
Accumulated depreciation 330.0 317.0
Depreciation expense 11.7 10.4

101
 notes
forming part of the financial statements Continued

26.7.2 Defined benefit plans

The Company offers the following benefit plan to its employees. The following tables sets out the funded status of the defined benefit plan and amount recognised in the
financial statements:

(` in million)
Particulars March 31, 2018 March 31, 2017
A (I) Gratuity
Components of employer expense
Current service cost 13.2 10.8
Interest cost 12.0 11.3
Expected return on plan assets (4.2) (1.0)
Actuarial losses/(gains) (18.9) 9.8
Total expense recognised in the Statement of Profit and Loss 2.1 30.9
Actual contribution and benefit payments for the year
Benefits paid 0.9 (1.3)
Actual contributions 0.2 50.5
Net asset recognised in the Balance Sheet
Present value of defined benefit obligation 157.8 153.6
Fair value of plan assets 39.6 37.3
Funded status surplus / (Deficit) (118.2) (116.3)
Net liability recognised in the Balance Sheet (118.2) (116.3)
Net liability is bifurcated as follows:
Current - -
Non-current (118.2) (116.3)
Total (118.2) (116.3)

Change in defined benefit obligations (DBO) during the year

Present value of DBO at beginning of the year 153.6 148.3
Current service cost 13.2 10.8
Interest cost 12.0 11.3
Actuarial (gains) / losses (20.1) 10.8
Liabilities settled on divestiture - (26.3)
Benefits paid (0.9) (1.3)
Present value of DBO at the end of the year 157.8 153.6

Change in fair value of assets during the year

Plan assets at beginning of the year 37.3 12.4
Expected return on plan assets 4.2 1.0
Actual company contributions 0.2 50.5
Liabilities settled on Divestiture - (26.3)
Actuarial (gains) / losses (1.2) 1.0
Benefits paid (0.9) (1.3)
Plan assets at the end of the year 39.6 37.3
Actual return on plan assets 3.1 2.0
As at March 31, 2018 and March 31, 2017 the plan assets have been invested in insurer managed funds.

Actuarial assumptions:
Discount rate 7.6% 7.5%
Expected return on plan assets 7.5% 7.5%
Salary escalation 10.0% 10.0%
Estimate of amount of contribution in the immediate next year. 50.0 50.0
Attrition rate : Age in years - 21-30: 3%, 31-40: 16%, 41-50: 19%, 51-57: 4%
Mortality tables: Published rate under the LIC (1994-96) mortality tables:

Experience adjustments March 31, 2018 March 31, 2017 March 31, 2016 March 31, 2015 March 31, 2014
Present value of DBO (157.8) (153.6) (148.3) (151.5) (145.4)
Fair value of plan assets 39.6 37.3 12.4 21.2 50.2
Funded status Deficit (118.2) (116.3) (135.9) (130.3) (95.2)
Experience gain / (loss) adjustments on plan liabilities (3.5) 4.2 (10.6) (8.8) 3.0
Experience gain / (loss) adjustments on plan assets (1.2) 1.0 1.6 (0.0) 0.6

102
notes
forming part of the financial statements Continued
B Actuarial assumptions for long-term compensated absences

Particulars March 31, 2018 March 31, 2017

Discount rate 7.6% 7.5%
Salary escalation 10.0% 10.0%
Attrition rate : Age in years - 21-30: 3%, 31-40: 16%, 41-50: 19%, 51-57: 4%
Note:

The discount rate is based on the prevailing market yields of Government of India securities as at the reporting date for the estimated term of the obligations.
The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

26.7.3 Provident Fund

(` in million)
Particulars March 31, March 31,
2018 2017
Components of employer expense
Current service cost 16.0 14.3
Interest cost 30.4 35.5
Expected return on plan assets (37.7) (40.6)
Actuarial losses 7.2 5.1
Total expense recognised in the Statement of Profit and Loss 15.9 14.3
Present value of defined benefit obligation 459.4 431.6
Fair value of plan assets (459.4) (431.6)
Net asset / (liability) recognised in the Balance Sheet - -
Change in defined benefit obligations (DBO) during the year
Present value of DBO at beginning of the year 431.6 443.7
Current service cost 16.0 14.3
Interest cost 30.4 35.5
Actuarial losses 10.0 1.5
Employee contribution 27.5 21.9
Liabilities assumed on acquisition / (settled on divestiture) 22.2 (62.1)
Benefits paid (78.3) (23.2)
Present value of DBO at the end of the year 459.4 431.6
Change in fair value of assets during the year:
Plan assets at beginning of the year 431.6 443.7
Expected return on plan assets 37.7 40.6
Actuarial losses 2.7 (3.6)
Employer contributions during the year 16.0 14.3
Employee contributions during the year 27.5 21.9
Assets assumed on acquisition / (distributed on divestiture) 22.2 (62.1)
Benefits paid (78.3) (23.2)
Plan assets at the end of the year 459.4 431.6
Actual return on plan assets 40.4 37.0
Expected contribution next year 17.5 15.8
Composition of the plan assets is as follows:
Government of India securities 234.0 214.4
Corporate bonds 199.1 195.2
Special deposit scheme 2.5 2.5
Others 23.8 19.5
Plan assets at the end of the year 459.4 431.6
Actuarial assumptions:
Discount rate 7.6% 7.5%
Expected return on plan assets 8.5% 9.1%
Discount rate for the remaining term to maturity of the investments 7.7% 7.0%
Average historic yield on the investments 8.6% 8.6%
Guaranteed rate of returns 8.6% 8.7%

Experience adjustments March 31, 2018 March 31, 2017 March 31, 2016 March 31, 2015 March 31, 2014
Present value of DBO 459.4 431.6 443.7 427.9 361.5
Fair value of plan assets 459.4 431.6 443.7 427.9 361.5
Experience gain / (loss) adjustments on plan liabilities 10.0 1.5 3.0 (2.1) 3.7
Experience gain / (loss) adjustments on plan assets 2.7 (3.5) (1.8) (1.5) 0.2

103
 notes
forming part of the financial statements
26.8 Related Party Transactions - List of Related Parties
(a) Parties where control exists:
(b) 
Entities having common
control:
(c) Executive Directors:
(d) Independent Directors:
(e) Non Executive Directors:
(f) E
 xecutive Directors and Key
Managerial Persons of the
Holding Company
(g) Relatives of Directors:
(h) Other related parties:
104
Continued
ICICI Bank Limited (Holding Company)
India Advantage Fund IV (Associate) (related party with effect from July 17, 2014)
ICICI Prudential Life Insurance Company Limited, ICICI Lombard General Insurance Company Limited, ICICI Securities Primary
Dealership Limited, ICICI Prudential Asset Management Company Limited, ICICI Home Finance Company Limited, ICICI Investment
Management Company Limited, ICICI Bank Canada, ICICI Securities Limited, ICICI Securities Holding Inc, ICICI Securities Inc,
ICICI Trusteeship Services Limited, ICICI International Limited, ICICI Bank UK PLC, ICICI Prudential Trust Limited, ICICI Prudential
Pension Funds Management Company Limited, ICICI Strategic Investments Fund.
Mr. Prashant Purker
Mr. Mohit Batra
Ms. Lalita Gupte (Chairperson upto October 19, 2016)
Mr. H.N Sinor (Chairperson upto July 25, 2017)
Mr. K.N. Memani (upto January 11, 2017)
Mr. Sridar Iyengar (Chairperson from July 27, 2017)
Mr. S. Mukherji
Mr. Marti Subrahmanyam (w.e.f July 25, 2017)
Mr. K Ramkumar (up to May 31, 2016)
Mr. Rakesh Jha
Ms. Chanda Kochhar
Mr. N.S Kannan
Mr. Rajiv Sabharwal (upto January 31, 2017)
Mr. Sanker Parmeswaran
Ms. Vishakha Mulye
Mr. Vijay Chandok
Mr. Anup Bagchi
Mr. Dileep Madhukar Gupte (upto October 19, 2016), Mr. Nishad Dileep Gupte (upto October 19, 2016), Ms. Asheeta Dileep
Gupte (upto October 19, 2016), Mr. Anupam Bokil (upto October 19, 2016), Dr. Ashok D. Joshi (upto October 19, 2016), Mr.
Nekchecher Hoshang Sinor (upto July 25, 2017), Mr. Dara Noshirwan Sinor (upto July 25, 2017), Dr. Peshotan Noshirwan Sinor
(upto July 25, 2017), Ms. Kiran Memani (up to January 11, 2017), Shri Bhagwan das Memani (up to January 11, 2017), Smt Janki
Devi Memani(up to January 11, 2017), Mr. Rajiv Memani (up to January 11, 2017), Ms. Shilpa Memani (up to January 11, 2017),
Ms. Ritu Memani (up to January 11, 2017), Biswa Nath Memani (up to January 11, 2017), Bajrang Lal Memani (up to January
11, 2017), Savitri Devi Sarda (up to January 11, 2017), Saroj Ladha (up to January 11, 2017), Pushpa Devi Sarda (up to January
11, 2017), Kusum Tapuriah (up to January 11, 2017), Ms. Nina Iyengar, Mr. Viji Iyengar, Mr. Rama Iyengar, Ms. Anita Madalena
Iyengar, Ms. Reena Mukherji, Ms. Barunava Mukherji, Mr. Aditya Mukherji, Ms. Aruna Ritankar Mukherji, Mr. Ritankar Chatterjee,
Mr. R. Krishnaswamy (up to May 31, 2016), Ms. J. Krishnaswamy (up to May 31, 2016), Mr. R. Shyam (up to May 31, 2016), Ms. R.
Suchithra (up to May 31, 2016), Mr. K Jayakumar (up to May 31, 2016), Ms. Shanthi Venugopal (up to May 31, 2016), Ms. Jaya Ram
Kumar (up to May 31, 2016), Ms. Pushpa Muralidharan (up to May 31, 2016), Ms. Malathi Vinod (up to May 31, 2016), Ms. Swati
Jha, Mr. Narendra Kumar Jha, Ms. Pushpa Jha, Mr. Sachchit Jha, Ms. Sanjali Jha, Mr. Rajesh Jha, Ms. Aparna Ahuja, Mr. Apoorva
Jha Bansal, Ms. Manisha M. Palekar, Mr. Vignesh Mulye, Mr. Vivek Mulye, Ms. Vriddhi Mulye, Dr. Gauresh M. Palekar, Ms. Shalaka
S. Gadekar. Ms. Bharati Purker, Ms. Kamla Purker, Ms. Amiya Purker, Ms. Sanjana Purker, Mr. Shrikant Purker, Mr. Nishikant Purker,
Mrs. Vandana Batra, Lt. General R.N.Batra, Mrs. Usha Batra, Mr. Neel Batra, Mrs. Nayantara Batra, Mrs. Ishita Baijal, Ms. Usha
M. Subrahmanyam, M.G. Subrahmanyam HUF, Mr. Harsha G. Marti, Ms. Meera Malhotra Marti, Uttara P. Marti, Marthi Gurunath
Venkatesh Mannar, Vasanta Ramesam, Gita Dendukuri, Puma Shankar, Rama Varanasi, Mr. Deepak Kochhar, Mr. Arjun Kochhar,
Ms. Aarti Kaji, Mr. Aditya Sameer Kaji, Mr. Mahesh Advani, Dr. Varuna Karna, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan,
Mr. Narayanan Raghunathan, Mr. Rangarajan Narayanan, Ms. Narayanan Sudha, Ms. Sangeeta Sabharwal (upto January 31,
2017), Mr. Kartik Sabharwal (upto January 31, 2017), Mr. Arnav Sabharwal (upto January 31, 2017), Dr. Sanjiv Sabharwal (upto
January 31, 2017), Ms. Sarla Sabharwal (upto January 31, 2017), Ms. Chitra Sanker, Ms. Ketki Bagdwal, Mr. Parmesh Sanker, Mr.
P. Subramaniam, Ms. Vasanthi Subramaniam, Ms. Poonam Chandok, Mr. C. V. Kumar, Ms. Shad Kumar, Ms. Simran Chandok, Ms.
Saluni Chandok, Ms. Sanjana Gulati, Mr. Animesh Chandra Bagchi, Ms. Mitul Bagchi, Ms. Jharna Bagchi, Mr. Aditya Bagchi, Mr.
Arun Bagchi, Mr. Shishir Bagchi.
Cleartrip Private Limited
BTI Payments Private Limited
Swadhaar Finserve Private Limited (upto October 19, 2016),
East West Ethnic Foods Private Limited (upto October 19, 2016),
Walkwater Properties Private Ltd (up to February 04, 2017);
JM Financial asset Reconstruction Ltd (public company w.e.f. September 30, 2016)
Ravisa Infomedia Private Limited
Tuksai Agri Partners;
N M Rothschild & Sons India Pvt. Ltd.
notes
forming part of the financial statements Continued

ICICI Foundation for Inclusive Growth

Raheja Princess Apartments Pvt Ltd;
Vayana Enterprises (P) Ltd. (from Jan 1, 2010)
AION India Investment Advisors Pvt. Ltd.
Go Fashion India Private Limited (from January 16, 2018)
Devyani International Limited (upto April 12, 2018)
Adlabs Entertainment Limited
Sainik Mining and Allied Services Limited (up to November 30, 2016)
RJ Corp Limited ( up to December 19, 2017)
Bharat Biotech International Limited
C L Educate Limited
CL Media Private Limited (100% subsidiary of CL Educate Limited)
Mahindra Holidays & Resorts India Limited
Dr. Reddy’s Laboratories Limited
Dr. Reddy Laboratories S.A.
AverQ Inc.
ClearTrip Inc.
Holiday Club Resorts OY (incorporated in Finland)
Indian School of Business
European Finance Association (EFA-EC)
Nomura Asset Management (USA) Inc.

26.8 Related Party Transactions (continued)

The transactions and balances outstanding as at March 31, 2018 are as follows :
(` in million)
Sl. Name of the related party Particulars March 31, 2018 March 31, 2017
No.
(a) Parties where control exists :
ICICI Bank Limited Share capital 10.0 10.0
Repayment of borrowings 46.8 676.7
Loans outstanding - 46.8
Interest on term loan 1.0 35.8
Interest accrued but not due * - -
Borrowing cost - 5.8
Reimbursement for electricity costs 2.9 3.1
Reimbursement for property tax 0.5 0.5
Reimbursement for water charges 0.4 0.4
Reimbursement for food charges * - -
Reimbursement of CAM charges 2.8 2.8
Expense recoverable 1.1 0.4
Balance in current accounts 1.0 1.2
Security deposit towards lease rentals 28.1 28.1
Rental income 59.7 59.7
Common corporate expense 2.6 1.8
Payable towards common corporate expense 0.5 0.3
Custodial charges * - -
Payable towards custodial charges* - -
Bank charges * - -
Purchase of tangible assets - 0.2
Marketing and distribution expense 3.6 0.4
Trade payable:
-Marketing fee accrued but not due 1.8 1.8
-Marketing fee payable 2.9 -
-Expenses payable 1.3 1.3
Leave encashment received - 0.4
India Advantage Fund IV (IAF IV) Redemption of units 294.3 127.4
Gain on redemption of units 10.0 5.0
Investments outstanding 689.3 983.6
(b) Entities under common control :
ICICI Prudential Life Insurance Company Limited Insurance charges 0.6 0.6
Prepaid insurance 0.2 0.2
ICICI Lombard General Insurance Company Limited Insurance charges 12.0 11.6
Prepaid Insurance 5.8 6.9
Insurance claims received * - -
ICICI Securities Primary Dealership Limited Other income -Rent 0.7 0.6
Security deposit receivable 0.1 -
Security deposit received towards lease rentals 0.7 0.6

105
 notes
forming part of the financial statements Continued

(` in million)
Sl. Name of the related party Particulars March 31, 2018 March 31, 2017
No.
ICICI Securities Limited Marketing and distribution expense 6.7 7.8
Trade payable:
-Marketing fee accrued but not due 20.6 21.3
ICICI Strategic Investment Fund Fee income 0.7 4.1
ICICI Home Finance Co. Ltd 100 Shares held as nominee of Holding Company - -
ICICI Investment Management Co. Ltd 100 Shares held as nominee of Holding Company - -
ICICI Trusteeship Services Ltd 100 Shares held as nominee of Holding Company - -
(c) Executive Directors :
Mr. Prashant Purker Remuneration to Managing director 37.4 26.5
Recoverable from Director 15.5 15.5
Remuneration payable 5.0 -
Mr. Mohit Batra Remuneration to Executive director 33.5 23.0
Recoverable from Director 13.5 13.5
Ms. Vishakha Mulye Recoverable from Director 42.6 42.6
Remuneration paid 3.0 3.0
Remuneration payable 1.6 1.5
(d) Independent Directors
Ms.Lalita Gupte Sitting fees (Chairperson upto October 19, 2016) - 0.4
Mr.H.N Sinor Sitting fees (Chairperson upto July 26, 2017) 0.3 0.8
Mr.K.N. Memani Sitting fees (upto January 11, 2017) - 0.4
Mr. Sridar Iyengar Sitting fees (Chairperson from July 27, 2017) 0.7 0.7
Mr. S. Mukherji Sitting fees 0.7 0.8
Mr. Marti Subrhamanyam Sitting fees (w.e.f July 25, 2017) 0.3 -
(e) Other Related Parties
ICICI Foundation for Inclusive Growth Donation 1.0 0.1
Ms. Amiya Purker Scholarship as per HR policy 0.2 -
* Value is less than ` 0.1 Million.

26.9 Segment information

The Company has identified business segments as its primary segment. Business segments are primarily Asset Management Service (AMC) and Other Activities.
AMC segment consists of management fees and advisory fees from various funds managed and advised by the Company. Other Activities consists of income from
investment in VCF units, profit on sale of investment and rental income. Revenues and expenses directly attributable to segments are reported under each reportable
segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower
efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used
interchangeably amongst segments are not allocated to primary and secondary segments. The Company operates only in one geography, i.e., India, hence geographical
segment disclosure is not applicable.

(` in million)
Particulars March 31, March 31,
2018 2017
Segment revenue
Asset management services 804.9 711.4
Others 135.4 220.1
Total revenue 940.3 931.5
Segment results
Asset management services 69.3 (21.0)
Others 103.3 142.9
Total operating profit 172.7 121.9
Less: Finance cost (3.7) (23.3)
Profit before tax 169.0 98.6
Less: Income taxes 57.2 (5.9)
Net gain for the year 111.8 92.7
Segment assets:
Asset management services 963.3 1,037.5
Others 2,181.6 2,663.6
Unallocable Assets :
Deferred tax assets 37.4 42.7
Advance tax and TDS (Net of provision for taxation) 132.8 134.2
Total assets 3,315.1 3,878.0
Segment liabilities:
Asset management services 906.6 1,333.9
Others 228.4 329.9
Unallocable Liabilities :
Borrowings - 145.9
Total liabilities 1,135.0 1,809.7
Capital Expenditure :
Asset management services 16.0 12.1
Depreciation :
Asset Management Services 25.8 32.3
Others 11.7 10.4

106
notes
forming part of the financial statements Continued
26.10 Earnings per share
(` in million)
Particulars March 31, March 31,
2018 2017
Basic
Weighted average no. of equity shares outstanding (of ` 10/- each) 1,000,000 1,000,000
Par value per share (`) 10 10
Net gain / (loss) (` In Millions) 111.8 92.7
Basic gain / (loss) per share 111.8 92.7

The Company does not have potentially dilutive equity shares outstanding during the year ended March 31, 2018 and March 31, 2017.

26.11 Details on derivatives instruments and unhedged foreign currency exposures

(i) During the year the Company has not entered into any derivative contract and therefore no disclosure pertaining to the same is applicable for the current year.

(ii) The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

Particulars March 31, 2018 March 31, 2017

Amount ` In Amount ` In
(Foreign currency) million (Foreign currency) million
Liabilities:
Payables towards various expenses USD 50,804 3.3 USD 1,823,635 118.2
Asset:
Trade receivable towards sub-advisory fees USD 691,250 45.0 USD 993,335 66.7

26.12 The Company has no dues to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2018 and
as at March 31, 2017. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, and has been determined to
the extent such parties have been identified on the basis of information available with the Company.

26.13 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately
preceding three financial years on Corporate Social Responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting
education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has
been formed by the company as per the Act.

a) Gross amount required to be spent by the company for the year ending March 31, 2018 is ` Nil (for year ending March 31, 2017 ` 0.1 Million).

b) Amount spent during the year ending March 31, 2018 on:
CSR Activities In cash Total
Construction / acquisition of any asset - -
On purpose other than (i) above 1.0 1.0
Amount spent during the year ending March 31, 2017 on:

CSR Activities In cash Total

Construction / acquisition of any asset - -
On purpose other than (i) above 0.1 0.1

26.14 Previous year’s figures have been regrouped / reclassified wherever necessary to confirm to current year’s presentation.

As per our report of even date attached For and on behalf of Board of Directors ICICI Venture Funds Management Limited

For B S R & Co. LLP Sridar Iyengar Prashant Purkar

Chartered Accountants Chairperson Managing Director & CEO
Firm registration no : 101248W/W-100022 DIN No. 00278512 DIN No. 00082481

Sanjay Sharma Madhusudhan Nair Beena M Chotai

Partner Company Secretary Chief Financial Officer
Membership no : 063980

Bengaluru, April 16, 2018 Mumbai, April 16, 2018

107
 cash flow statement
for the year ended March 31, 2018

(` in Millions)
For the For the
Year Ended Year Ended
March 31, 2018 March 31, 2017

A. Cash flows from operating activities

Net profit / (loss) before taxation 169.0 98.6
Adjustments for:
Depreciation and amortisation 37.5 42.7
Profit on sale of current investments (29.0) (85.1)
Distribution from investment in units of venture capital funds (25.1) (61.2)
Provisions no longer required written back (126.6) (53.3)
Rental income (81.3) (73.8)
Finance charges 85.8 143.6
Unrealised loss on account of foreign exchange fluctuation - 2.6
Adjustment to carrying amount of investment - 89.9
Profit/ (loss) on sale of fixed assets (0.1) -
Operating profit/(loss) before working capital changes (i) 30.2 104.0
Changes in working capital:
Adjustment for (increase)/ decrease in operating assets:
Trade receivables 74.0 (150.6)
Loans and advances 3.0 (4.3)
Other assets (23.6) (19.8)
Adjustment for increase/(decrease) in operating liabilities:
Trade payables (3.4) 9.4
Other liabilities 94.2 19.8
Provisions 8.2 (10.4)
Changes in working capital (ii) 152.4 (155.9)
Cash generated from operations (i+ii) 182.6 (51.9)
Income taxes (paid) (50.6) (32.6)
Net cash flow (used in)/ from operating activities 132.0 (84.5)
B. Cash flows from investing activities
Purchase of fixed assets (16.0) (12.1)
Proceeds from sale of fixed assets 6.8 0.7
Distribution from investment in units of venture capital funds 3.7 51.0
Rental income 81.3 73.8
Purchase of current investments (482.9) (122.8)
Sale of current investments 1,010.7 641.2
Purchase of non-current investment - (15.3)
Net cash flow from investing activities 603.6 616.5
C. Cash flows from financing activities
Proceeds from borrowings 420.4 1,004.8
Repayment of borrowings (1,064.1) (1,394.8)
Finance cost (89.2) (141.5)
Net cash flow used in financing activities (732.9) (531.5)
Net increase in Cash and cash equivalents (A+B+C) 2.7 0.5
Cash and cash equivalents at the beginning of the year 1.2 0.7
Cash and cash equivalents at the end of the year* 3.9 1.2
* Comprises :
(a) Cash on hand - -
(b) Balances with banks in current accounts 3.9 1.2
3.9 1.2
Corporate information and significant accounting policies
Notes forming part of the financial statements

As per our report of even date attached For and on behalf of Board of Directors ICICI Venture Funds Management Limited

For B S R & Co. LLP Sridar Iyengar Prashant Purkar

Chartered Accountants Chairperson Managing Director & CEO
Firm registration no : 101248W/W-100022 DIN No. 00278512 DIN No. 00082481

Sanjay Sharma Madhusudhan Nair Beena M Chotai

Partner Company Secretary Chief Financial Officer
Membership no : 063980

Bengaluru, April 16, 2018 Mumbai, April 16, 2018

108
 ICICI INTERNATIONAL LIMITED
23RD ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors: Date of Appointment Date of Resignation Bankers The Mauritius Commercial Bank Ltd
Mr Ranjit Michael Samuel Fernando 30 July 2007 - Deutsche Bank (Mauritius) Limited (opened on 26 October 2017)
Mr Sanker Parameswaran 22 January 2014 - (closed on 10 November 2017) Sir William Newton Street
Mr Zakir Hussein Niamut 30 April 2014 - Fourth Floor Barkly Wharf East Port Louis
Mr Yashwant Kumar Beeharee 25 August 2014 16 November 2017 Le Caudan Waterfront Port Louis Mauritius Mauritius
Mr Pravesh Beeharry 16 November 2017 -
SBI (Mauritius) Ltd Registered Office:
Auditors: 7th Floor, SBI Tower Mindspace IFS Court Bank Street
Crowe Horwath ATA 45, Ebene72201 Cybercity Mauritius TwentyEight Cybercity
Member of Crowe Horwath International 2nd Floor, Ebene 72201 Mauritius
Ebene Esplanade 24, Bank Street, Cybercity Ebene 72201 Mauritius ICICI Bank Limited
Securities Market Services
Administrator, Secretary and Mauritian Tax Agent: Empire Complex, 1st Floor 414-Senapati
SANNE Mauritius Bapat Marg Lower Parel (West)
(formerly known as International Financial Services Limited) Mumbai 400013 India
IFS Court Bank Street Twenty Eight
Cybercity Ebene 72201 Mauritius

commentary of the directors

for the year ended March 31, 2018
The directors present their commentary together with the audited financial statements •  repare the financial statements on the going concern basis unless it is
p
of ICICI INTERNATIONAL LIMITED (the “Company”) for the financial year ended 31 inappropriate to presume that the Company will continue in business.
March 2018. The directors are responsible for keeping proper accounting records which disclose
with reasonable accuracy at any time the financial position of the Company. They are
PRINCIPAL ACTIVITIES
also responsible for safeguarding the assets of the Company and hence for taking
The principal activities of the Company are that of investment holding and to act as reasonable steps for the prevention and detection of fraud and other irregularities.
CIS Manager.
The directors have confirmed that they have complied with the above requirements
RESULTS AND DIVIDENDS in preparing the financial statements.
The results for the year are shown in the statement of profit or loss and other
comprehensive income and related notes. AUDITORS
The directors did not declare any dividend during the period under review (2017: The auditors, Crowe Horwath ATA, have indicated their willingness to continue in
USD Nil). office until the next annual meeting.

DIRECTORS CERTIFICATE FROM THE SECRETARY UNDER SECTION 166 (D) OF THE MAURITIUS
The present membership of the Board is set out on page 2. Mr Yashwant Kumar COMPANIES ACT 2001
Beeharee has resigned on 16 November 2017 and Mr Pravesh Beeharry was We certify to the best of our knowledge and belief that we have filed with the
appointed in his stead during the year. Registrar of Companies all such returns as are required of ICICI INTERNATIONAL
LIMITED (the “Company”) of the Mauritius Companies Act 2001 during the
STATEMENT OF THE DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE financial year ended 31 March 2018.
FINANCIAL STATEMENTS
for SANNE Mauritius
Company law requires the directors to prepare financial statements for each financial Secretary
year, which present fairly the financial position, financial performance and cash flows
of the Company. In preparing those financial statements, the directors are required to: Registered office:
• select suitable accounting policies and then apply them consistently; Date: ....2018 IFS Court Bank Street Twenty Eight
Cybercity Ebene 72201 Mauritius
• make judgements and estimates that are reasonable and prudent;
• s tate whether applicable accounting standards have been followed, subject to
any material departure disclosed and explained in the financial statements; and

109
independent auditors’ report
to the shareholders of icici international limited
Opinion
We have audited the financial statements of ICICI INTERNATIONAL LIMITED (the
“Company”) set out on pages 10 to 30, which comprise the statement of financial
position as at 31 March 2018, and the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement
of cash flows for the year then ended and the notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material
respects, the financial position of the Company as at 31 March 2018, and its
performance and cash flows for the year ended in accordance with International
Financial Reporting Standards (IFRS) and the requirements of the Mauritius
Companies Act 2001.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA).
Our responsibilities under those standards are further described in the Auditors’
responsibilities for the audit of the financial statements section of our report. We are
independent of the Company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code)
together with the ethical requirements that are relevant to our audit of the financial
statements in Mauritius and we have fulfilled other ethical responsibilities in
accordance with the code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Other matter
We do not express any opinion on the INR figures as they are shown additional
information for the sole purpose of the holding company which prepares
consolidated financial statements.
Other information
Directors are responsible for the other information. The other information comprise
the Commentary of the directors and the Company’s Secretary’s certificate which
we obtained prior to the date of this auditors’ report. Other information does not
include the financial statements and our auditors’ report thereon.
Other information (Continued)
Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance or conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained
prior to the date of this auditors’ report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the directors and those charged with governance for the financial
statements
The directors are responsible for the preparation and fair presentation of the financial
statements in accordance with International Financial Reporting Standards and the
requirements of the Mauritius Companies Act 2001, and for such internal control
as the directors determine is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISA will always detect a material misstatement when
110
it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISA, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control;
•  btain an understanding of internal control relevant to the audit in order to
O
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Company’s
internal control;
•  valuate the appropriateness of accounting policies used and the reasonableness
E
of accounting estimates and related disclosures made by the directors;
•  onclude on the appropriateness of the directors’ use of the going concern basis
C
of accounting and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditors’
report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events
or conditions may cause the Company to cease to continue as a going concern;
and
•  valuate the overall presentation, structure and content of the financial
E
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiency in internal control that we identify during
our audit.
Report on other legal and regulatory requirements:
In accordance with the requirements of the Mauritius Companies Act 2001, we report
as follows:
•  e have no relationship with, or any interests in, the Company other than in our
W
capacity as auditors;
• We have obtained all the information and explanations that we required; and
• In our opinion, proper accounting records have been kept by the Company as
far as it appears from our examination of those records.
Use of this report
This report is made solely for the Company’s shareholder in accordance with Section
205 of the Mauritius Companies Act 2001. Our audit work has been undertaken so
that we might state to the Company’s shareholder those matters we are required
to state to the shareholder in our auditors’ report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s shareholder, for our audit work, for this
report, or for the opinion we have formed.
Crowe Horwath ATA K.S.Sewraz, FCCA
Public Accountants Signing Partner
Licensed by FRC
Date: 24 April 2018
Ebene, Mauritius
statement of profit statement of financial
or loss and other comprehensive income for the year ended 31 march 2018 position as at 31 march 2018

Notes 31 March March 31, March 31, March 31, Notes March 31, March 31, March 31, March 31,
2018 2018 2017 2017 2018 2018 2017 2017
US$ `* US$ `* US$ `* US$ `*
Income ASSETS
Management fee 6 (a) 316,400 20,394,163 146,113 9,801,991
Non-current asset
Sub account income 6 (b) - - 3,746 251,300
Other income 21,086 1,359,138 - - Investments 7 134 8,765 134 8,690
Foreign exchange gain (net) 1,525 98,297 - -
Bank interest income 19,323 1,245,501 12,427 833,665
Total income 358,334 23,097,099 162,286 10,886,956 Current assets
Receivables and
Expenses prepayments 8 705,443 45,977,247 189,005 12,256,974
Licence fees 4,100 264,273 4,100 275,049
Professional fees 6(c) 43,866 2,827,471 33,608 2,254,593 Cash and cash equivalents 155,106 10,109,001 167,327 10,851,156
Bank charges 4,912 316,587 2,002 134,304 Short term bank deposits 9 700,000 45,622,512 1,100,000 71,335,000
Audit fees 6,899 444,711 6,805 456,513
Total current assets 1,560,549 101,708,760 1,456,332 94,443,130
Salaries 29,615 1,908,870 64,252 4,310,345
General expenses 38,658 2,491,763 36,289 2,434,448 TOTAL ASSETS 1,560,683 101,717,525 1,456,466 94,451,820
Advisory fees 6(d) 22 1,435 22,056 1,479,627
Trailer fees 6(e) 15,400 992,636 36,418 2,443,102
Insurance fees 12,138 782,402 11,223 752,895 EQUITY AND LIABILITY
Net loss on exchange - - 53 3,556
Equity
Upfront commission fees 6(e) & 8 131,598 8,482,393 7,825 524,940
Total expenses 287,208 18,512,541 224,631 15,069,372 Stated capital 10 900,000 36,795,500 900,000 36,795,500
Retained earnings 523,324 22,990,528 452,198 18,405,970
Profit/(loss) before taxation 71,126 4,584,558 (62,345) (4,182,416)
Taxation 5 - - - - Translation reserves - 32,979,124 - 32,488,570
Profit/(loss) for the year 71,126 4,584,558 (62,345) (4,182,416) Total equity 1,423,324 92,765,152 1,352,198 87,690,040
Other comprehensive
income:
Items that will not be Current liability
reclassified subsequently to
profit or loss - - - - Payables 11 137,359 8,952,373 104,268 6,761,780
Items that may be classified TOTAL EQUITY AND
subsequently to profit LIABILITY 1,560,683 101,717,525 1,456,466 94,451,820
or loss - - - -
Total comprehensive *The corresponding amounts in Indian rupee (“INR”) are shown as additional information for the
income/(loss) for the year 71,126 4,584,558 (62,345) (4,182,416) sole purpose of the holding company which prepares consolidated financial statements.
*The corresponding amounts in Indian rupee (“INR”) are shown as additional Approved and authorised for issue by the Board of directors on XX XXX 2018 and signed on its
information for the sole purpose of the holding company which prepares behalf by:
consolidated financial statements.

The notes on pages 14 to 30 form an integral part of these financial statements. Director Director

statement of changes in equity

for the year ended March 31, 2018

Retained
Stated capital Total
earnings
US$ US$
US$
At 1 April 2016 900,000 514,543 1,414,543
Total comprehensive loss for the year (62,345) (62,345)
At 31 March 2017 900,000 452,198 1,352,198
Total comprehensive income for the year - 71,126 71,126
At 31 March 2018 900,000 523,324 1,423,324

111
cash flow statement
for the year ended March 31, 2018

March 31, March 31,

2018 2017
US$ US$
Cash flows from operating activities
Profit/(loss) before taxation 71,126 (62,345)
Adjustments for:
Bank interest income (19,323) (12,427)
Net foreign exchange (gain)/loss (1,525) 53
Operating profit / (loss) before working capital changes 50,278 (74,719)
Increase in receivables and prepayments (516,916)  (157,635)
Increase in payables 33,091 68,893
Net cash used in operating activities (433,548) (163,461)

Cash flows from investing activity

Interest received 19,801 28,632
Net cash from investing activity 19,801 28,632

Net decrease in cash and cash equivalents and bank deposits (413,746) (134,829
Cash and cash equivalents and bank deposits at beginning of the year 1,267,327 1,402,209
Effect of exchange differences 1,525 -53
Cash and cash equivalents and bank deposits at end of the year 855,106 1,267,327
 To exclude interest receivable

All non-cash transactions are disclosed in note 16.

The notes on pages 14 to 30 form an integral part of these financial statements.

notes to the financial statements

for the year ended March 31, 2018
1. GENERAL
The Company was incorporated in Mauritius on 18 January 1996 as a private
company with liability limited by shares. It holds a Category 1 Global Business
Licence issued by the Financial Services Commission. The Company is licensed
to act as CIS Manager pursuant to the Securities Act 2005. The Company’s
registered office is at IFS Court, Bank Street, TwentyEight, Cybercity, Ebene
72201, Mauritius.
 he Company has subscribed to non-redeemable management shares of India
T from the financial asset expire, or when the financial asset and all substantial
Optima Fund (IOF) (Mauritius) and India Opportunities Fund Limited (Jersey).
The Company also provides investment management services to IOF and acts
as a settlor to The Emerging India Fund Trust and to The Infra India Trust.
The financial statements of the Company are expressed in United States dollar
(“USD”). The Company’s functional currency is USD, the currency of the primary
economic environment in which the Company operates. The corresponding
amounts in Indian rupee (“INR”) are shown as additional information for the
sole purpose of the holding company.
2. ACCOUNTING POLICIES
The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS) and which comprise of International Accounting
Standards (“IAS”) and interpretations issued by the IFRS Interpretations
Committee approved by the International Accounting Standards Board (IASB)
that remain in effect and in compliance with the Mauritius Companies Act 2001.
The preparation of financial statements in accordance with IFRS requires the
directors to make estimates and assumptions that could affect the reported
amounts and disclosures in the financial statements. Actual results may differ
from these estimates.
A summary of the more important accounting policies, which have been applied
consistently, is set out below.
Basis of preparation
The financial statements are prepared under the historical cost convention as
modified for the measurement at fair values of financial instruments carried on
the statement of financial position.
The historical cost convention is generally based on the fair value of the
consideration given in exchange of assets. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at measurement date, regardless of whether that
price is directly observable or estimates using another valuation technique.
Financial instruments
Financial assets and financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the financial instruments.
Financial assets are derecognised when the contractual rights to the cash flows
risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged,
cancelled or expired.
Financial assets and financial liabilities are measured initially at fair value plus
transactions costs, where appropriate.
Financial instruments carried on the statement of financial position include
investments, receivables, cash and cash equivalents, short term bank deposits
and payables. The particular recognition methods adopted are disclosed in the
individual policy statements associated with each item.
Disclosures about financial instruments to which the Company is a party are
provided in note 12.
(a) Investments
The investments are classified as available-for-sale investments. This
category determines subsequent measurement and whether any resulting
income and expense is recognised in the profit or loss.
 vailable-for-sale investments are measured at fair value and the resulting
A
temporary unrealised gains/(losses) (including unrealised foreign exchange
gains/(losses) on retranslation at the closing rate, if any) are reported as a
separate component of equity until the underlying investment is sold or
permanently written off, and the total realised gains/(losses) are included in
the profit or loss.
The valuation of investments may not necessarily represent the amounts
that may eventually be realised from sales or other dispositions.
 he available-for-sale investments consist of unquoted equity instruments
T
whose fair value approximate its cost. Any permanent impairment is
recognised as an expense in the period in which the diminution in value is

112
notes to the financial statements
for the year ended March 31, 2018
identified. Impairment loss on available-for-sale investment is not reversed
through profit or loss.
(b) Receivables
Receivables are stated at original invoiced amount less allowances made
for doubtful receivables based on a review of all outstanding amounts
at the period-end. An allowance for doubtful receivables is made when
there is objective evidence that the Company will not be able to collect
all amounts due according to original terms of receivables. Bad debts are
written off when identified.
(c) Cash and cash equivalents
Cash comprises cash at banks. Cash equivalents are short term, highly
liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of change in value.
(d) Short term deposits
Bank deposits having a maturity of more than 3 months are classified as
short term deposits.
(e) Payables
Payables are stated at their nominal value which approximate their fair
value.
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Company are measured
using the currency of the primary economic environment of the Company
(the “functional currency”). The financial statements of the Company
are presented in United States dollar (“USD”), which is the Company’s
functional currency and presentation currency.
(ii) Transactions and balances
Transactions denominated in foreign currencies are translated in USD at the
rate of exchange ruling at the dates of the transactions. Monetary assets
and liabilities are translated at the rate of exchange ruling at reporting date.
Exchange differences arising on translation and realised gains and losses
on disposals or settlement of monetary assets and liabilities are recognised
in the profit or loss.
 on-monetary assets and liabilities denominated in foreign currencies,
N 2017. Earlier application is permitted. However, the Company has not early
which are stated at historical cost, are translated to USD at the foreign
exchange rate ruling at the date of the transaction. Differences on exchange
are dealt with in equity as ‘Translation reserve’.
Deferred tax
Deferred tax is provided, using the liability method, on all temporary differences
arising between the tax bases of assets and liabilities and their carrying values
for financial reporting purposes. Currently enacted tax rates are used to
determine deferred tax.
The principal temporary differences arise from tax losses carried forward.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be available against which the temporary differences can
be utilised.
Income tax
Income taxes currently payable are provided for in accordance with the existing
legislation of the various countries in which the Company operates.
Equity
Ordinary shares are classified as equity. Incremental costs directly attributable
to the issue of new shares or options are shown in the equity as a deduction, net
of tax, from proceeds.
Retained earnings include current year’s and prior years’ results as disclosed in
the statement of profit or loss and other comprehensive income.
Revenue recognition
Interest income, management fee, other income and sub account income are
recognised on an accrual basis.
Expense recognition
All expenses are accounted for in the profit or loss on an accrual basis.
Related parties
Related parties are individuals and companies where the individuals or
companies have the ability, directly or indirectly, to control the other party
or exercise significant influence over the other party in making financial and
operating decisions.
Provisions
Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation, and a reliable estimate of the amount
can be made.
Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in
the statement of financial position if, and only if, there is a currently enforceable
legal right to offset the recognised amounts and there is an intention to settle on
a net basis, or to realise the assets and settle the liabilities simultaneously.
3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)
(i) New and amended standards issued and effective for the current year
The following standards and amendments to standards were issued and
are effective for annual periods beginning on or after 1 April 2017.
 mendments to IAS 12 Income tax -Recognition of Deferred Tax Assets for
A
Unrealised Losses
The amendments clarify how an entity should evaluate whether there will
be sufficient future taxable profits against which it can utilise a deductible
temporary difference.
The application of these amendments has had no impact on the financial
statements as the Company already assesses the sufficiency of future
taxable profits in a way that is consistent with these amendments.
Amendments to IAS 7 Statement of Cash flows - Disclosure Initiative
The amendments require an entity to provide disclosures that enable
users of financial statements to evaluate changes in liabilities arising from
financing activities, including both cash and non-cash changes.
The application of these amendments did not have a material impact on the
financial statements.
(ii) 
New and revised standards and interpretations issued but not yet
effective
The following standards, interpretations and amendments to standards
were issued and are not effective for annual periods beginning on 1 April
adopted them in preparing these financial statements.
IFRS 9 Financial Instruments
IFRS 9 issued in November 2009 introduced new requirements for the
classification and measurement of financial assets. IFRS 9 was subsequently
amended in October 2010 to include requirements for the classification and
measurement of financial liabilities and for derecognition, and in November
2013 to include the now requirements for general hedge accounting. Another
revised version of IFRS 9 was issued in July 2014 mainly to include (a)
impairment requirements for financial assets and (b) limited amendments to
the classification and measurement requirements by introducing a ‘fair value
through other comprehensive income’ (FVTOCI) measurement category for
certain simple debt instruments.
Key requirements of IFRS 9:
• All recognised financial assets that are within the scope of IFRS 9 are
required to be subsequently measured at amortised cost or fair value.
Specifically, debt investments that are held within a business model whose
objective is to collect the contractual cash flow, and that have contractual
cash flows that are solely payments of principal and interest on the
principal outstanding are generally measured at amortised cost at the end
of subsequent accounting period. Debt instrument that are held within a
business model whose objective is achieved both by collecting contractual
cash flows and selling financial assets, and that have contractual terms that
give rise on specific dates to cash flows that are solely of principal and
interest on the principal amount outstanding, are generally measured at
FVTOCI. All other debt investments and equity investments are measured
at their fair value at the end of subsequent changes in the fair value of an
entity investment (that is not held for trading nor contingent consideration
recognised by an acquirer in a business combination to which IFRS 3
applies) in other comprehensive income, with only dividend income
generally recognised in profit or loss.
• With regard to the measurement of financial liabilities designated as at fair
value through profit or loss, IFRS 9 requires that the amount of change in
the fair value of a financial liability that is attributable to changes in the credit
risk of that liability is presented in other comprehensive income, unless
the recognition of such changes in other comprehensive income would
create or enlarge an accounting mismatch in profit or loss. Changes in fair
113
notes to the financial statements
for the year ended March 31, 2018
value attributable to a financial liability’s credit risk are not subsequently
reclassified to profit or loss. Under IAS 39, the entire amount to the change
in the fair value of the financial liability designated as fair value through
profit or loss is presented in profit or loss.
• In relation to the impairment of financial assets, IFRS 9 requires an
expected credit loss model, as opposed to an incurred credit loss model
under IAS 39. The expected credit loss model requires an entity to account
for expected credit losses and changes in those expected credit losses at
each reporting date to reflect changes in credit risk since initial recognition.
In other words, it is no longer necessary for a credit event to have occurred
before credit losses are recognised.
IFRS 9 is effective for annual reporting periods beginning on or after 1
January 2018, with early adoption permitted. However, the Company has
not early adopted the above standard.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 establishes a single comprehensive model for entities to use in
accounting for revenue arising from contracts with customers. IFRS 15
will supersede the current revenue recognition guidance including IAS 18
Revenue, IAS 11 Construction Contracts and the related interpretations
when it becomes effective.
The core principle of IFRS 15 is that an entity should recognise revenue to depict
the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services. Specifically, the Standard introduces a 5-Step
approach to revenue recognition:
• Step 1: Identify the contract(s) with a customer;
• Step 2: Identify the performance obligations in the contract;
• Step 3: Determine the transaction price;
• Step 4: Allocate the transaction price to the performance obligations in the
contract; and
• Step 5: Recognise revenue (or as) the entity satisfies a performance
obligation.
Under IFRS 15, an entity recognises revenue when (or as) a performance
obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the
particular performance obligation is transferred to the customer.
Far more prescriptive guidance has been added in IFRS 15 in relation to the
identification of performance obligations, principal versus agent considerations,
as well as licensing application guidance.
The Company is still assessing the impact of this new standard, but it is not
expected to have a significant effect on the financial performance of the
Company. There may be an impact on the level of disclosure provided.
IFRS 16 Leases
IFRS 16 introduces a comprehensive model for the identification of lease
arrangements and accounting treatments for both lessors and lessees. IFRS
16 will supersede the current lease guidance including IAS 17 Leases and the
related interpretation when it becomes effective.
IFRS 16 distinguishes leases and service contracts on the basis of whether an
identified assets is controlled by a customer. Distinctions of operating leases
(off balance sheet) and finance leases (on balance sheet) are removes for
lessee accounting, and is replace by a model where a right-of-use asset and a
corresponding liability have to be recognised for all leases by lessees (i.e. all on
balance sheet) except for short-term leases and leases of low value assets.
 he right-of-use asset is initially measured at cost and subsequently measured
T
at cost (subject to certain exceptions) less accumulated depreciation and
impairment losses, adjusted for any remeasurement of the lease liability. The
lease liability is initially measured at present value of the lease payments that
are not paid at that date. Subsequently, the lease liability is adjusted for interest
and lease payments, as well as the impact of lease modifications, amongst
others. Furthermore, the classification of cash flows will also be affected as
operating lease payments under IAS 17 are presented as operating cash flows;
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
whereas under IFRS 16 model, the lease payments will be split into a principal
and an interest portion which will be presented as financing and operating cash
flows respectively.
In contrast to lessee accounting, IFRS 16 substantially carries forward the lessor
accounting requirements in IAS 17, and continues to require lessor to classify a
lease either as an operating lease or a finance lease.
The directors of the Company do not anticipate that the application of these
standards may have a significant impact on the Company’s financial statements.
Annual improvements to IFRSs 2015-2017 Cycle
In December 2017, the IASB published Annual Improvements to IFRS Standards
2015–2017 Cycle, containing the following amendments to IFRSs:
114

IAS 12 Income Taxes — The amendments clarify that all income tax
consequences of dividends (i.e. distribution of profits) should be recognised in
profit or loss, regardless of how the tax arises.
The above amendments are effective for annual periods beginning on or
after 1 January 2019. The directors of the Company do not anticipate that
the application of the amendments in the future will have any impact on the
Company’s financial statements as the Company is neither a first-time adopter
of IFRS nor a venture capital organisation.
IFRIC 22 – Foreign Currency Transactions and Advance Consideration Issued
IFRIC 22 addresses how to determine the ‘date of transaction’ for the purpose
of determining the exchange rate to use on initial recognition of an asset,
expense or income, when consideration for that item has been paid or received
in advance in a foreign currency which resulted in the recognition of a non-
monetary asset or liability (e.g. a non-refundable deposit or deferred revenue).
The interpretation specifies that the date of transaction is the date on which
the entity initially recognises the non-monetary asset or non-monetary liability
arising from the payment or receipt of advance consideration. If there are
multiple payments or receipts in advance, the interpretation requires an entity
to determine the date of transaction for each payment or receipt of advance
consideration.
 he Interpretation is effective for annual periods beginning on or after 1 January
T
2018 with earlier application permitted. Entities can apply the Interpretation
either retrospectively or prospectively. Specific transition provisions apply to
prospectively application.
The directors of the Company do not anticipate that the application of the
amendments in the future will have an impact on the Company’s financial
statements. This is because the Company already accounts for transactions
involving the payment or receipt of advance consideration in a foreign currency
in a way that is consistent with amendments.
IFRIC 23 — Uncertainty over Income Tax Treatments
IFRIC 23 clarifies the accounting for uncertainties in income taxes. The
interpretation is to be applied to the determination of taxable profit (tax loss),
tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under IAS 12.
 n entity is required to use judgement to determine whether each tax treatment
A
should be considered independently or whether some tax treatments should
be considered together. The decision should be based on which approach
provides better predictions of the resolution of the uncertainty.
An entity is to assume that a taxation authority with the right to examine any
amounts reported to it will examine those amounts and will have full knowledge
of all relevant information when doing so.
An entity has to consider whether it is probable that the relevant authority will
accept each tax treatment, or group of tax treatments, that it used or plans to
use in its income tax filing.
If the entity concludes that it is probable that a particular tax treatment is
accepted, the entity has to determine taxable profit (tax loss), tax bases, unused
tax losses, unused tax credits or tax rates consistently with the tax treatment
included in its income tax filings.
If the entity concludes that it is not probable that a particular tax treatment is
accepted, the entity has to use the most likely amount or the expected value of
the tax treatment when determining taxable profit (tax loss), tax bases, unused
tax losses, unused tax credits and tax rates. The decision should be based on
which method provides better predictions of the resolution of the uncertainty.
 n entity has to reassess its judgements and estimates if facts and circumstances
A
change.
IFRIC 23 is effective for annual reporting periods beginning on or after 1 January
2019. Earlier application is permitted.
Critical accounting judgements in applying the Company’s accounting policies
In the process of applying the Company’s accounting policies, which are
described in note 2, the directors have made the following judgements that
have the most significant effect on the amounts recognised in the financial
statements.
Determination of functional currency
The determination of the functional currency of the Company is critical since
recording of transactions and exchange differences arising thereon are
dependent on the functional currency selected. As described in note 2, the
directors have considered those factors therein and have determined that the
functional currency of the Company is the United States dollar (USD).
notes to the financial statements
for the year ended March 31, 2018
Impairment of financial assets
The Company assesses at each reporting date whether there is any objective
evidence that a financial asset or a group of financial assets is impaired.
A financial asset is deemed to be impaired if, and only if, there is objective
evidence of impairment as a result of one or more events that has occurred after
the initial recognition of the asset (an incurred ‘loss event’) and that loss event
has an impact on the estimated future cash flows of the financial asset that can
be reliably estimated. There are no such indications of events having impact
on future cash flows of the Company. Therefore, no impairment provision is
required to be made by the Company.
5. TAXATION
Income tax
The Company, under current laws and regulations, is liable to pay income tax
on its net income at the rate of 15%. The Company is, however, entitled to a tax
credit equivalent to the higher of actual foreign tax suffered or 80% of Mauritian
tax payable in respect of its foreign source income. Gains or profits arising from
sale of units or securities are exempt from tax in Mauritius and any dividend or
redemption proceed paid by the Company to the shareholder would not attract
withholding tax in Mauritius.
On 10 May 2016, the Government of India and Mauritius announced the signing
of a Protocol amending the provisions of the India-Mauritius tax treaty. The
Protocol is effective on 1 April 2017 in respect of income and gains received
from India. The Protocol, inter alia, provides for capital gains arising on disposal
of shares acquired by a Company resident in Mauritius on or after 1 April
2017 to be taxed in India. However, investments in shares acquired up to 31
March 2017 are grandfathered, thus exempted from capital gains tax in India
irrespective of the date of disposal. In addition, shares acquired as from 1 April
2017 and disposed of by 31 March 2019 will be taxed at a concessionary rate
equivalent to 50 % of the domestic tax rate prevailing in India provided the
Mauritian Company meets the presented limitations of benefits clause which
includes a minimum expenditure level in Mauritius.
6. AGREEMENTS
(a) Investment Management Agreements
 The Company has entered into several investment management
agreements with different companies to provide investment management
services. Management fees accrued to the Company are recognised in the
financial statements as per amounts agreed and included in the investment
management agreements. Where the companies under management are
not activated, investment management fee is not accrued.
(b) Investment Facilitation Agreement
The Company has entered into an investment facilitation agreement for
providing sub account services as foreign institutional investor. On 9
May 2016, the FII Licence of the Company has expired. The Company is
no longer providing sub-account services as FII to India Optima Fund as
from 7 May 2016. Therefore, the investment facilitation agreement was
automatically terminated upon expiry of the FII licence.
(c) Administration Agreement
 The Company has entered into an administration agreement with an
Administrator to procure administrative services. In consideration of the
services being performed by the Administrator, the Company pays the
Administrator a fee as per industry norms.
(d) Advisory Agreements
 The Company has entered into advisory agreements with two leading
asset management companies in India to provide non-binding investment
advisory services to the Company.
(e) Global Distribution Agreements
The Company has also entered into other distribution agreements with
distributors pursuant to which it pays the distributors trailer fees as per the
agreements.

The foregoing is based on the taxation laws and practices currently in force in The above fees are paid on an arms’ length basis and according to industry
Mauritius and may be subject to change. norms.

The tax expense for the year ended 31 March 2018 to USD Nil (31 March 2017: Upfront Commissions
USD Nil). Tax loss of USD 317,519 will be carried forward to be netted off against To expand the Company’s presence in The Gulf Cooperation Council region and
future taxable income as follows: with a focus on getting new business with the existing distributor, the Company
received the Board’s approval for launching 3 feeder funds in the first week of
USD December 2016 as follows:
Up to year ending 31 March 2019 15,832 • IOF Rising India – Series 2;
• IOF Balanced Advantage Fund – Series 1 & 2;
Up to year ending 31 March 2020 134,961
• IOF Focused Bluechip Fund – Series 1 & 2; and
Up to year ending 31 March 2021 92,116 • IOF Multicap Fund – Series 1 & 2.
Up to year ending 31 March 2022 74,610 The Company entered into a ninth Amendment Agreement to the Global
317,519 Distribution Agreement with India Optima Fund and ICICI Bank Limited. It has
been mutually agreed that the Company would pay an Upfront Commission to
Deferred taxation ICICI Bank, as distributor. The upfront fee shall be paid on the aggregate amount
Deferred income taxes are calculated on all temporary differences under the invested by the investors directly in the Fund through the Distribution or the
liability method at the rate of 3%. At 31 March 2018, no deferred tax asset had amount invested by the Distributor under the Omnibus route or direct route.
been recognised in respect of the tax losses carried forward as it is not probable For upfront commission, in case the investment in the Fund is redeemed on or
that taxable profit will be available in the foreseeable future. before 36 months from the date of allotment of redeemable preference shares
(RPS), the proportionate of upfront fee paid shall be recovered / clawed back /
Income tax reconciliation
set off from the future brokerage payments at the Company’s sole discretion.
The income tax on the Company’s profit before tax differs from the theoretical
amount that would arise using the tax rate of 15% as follows: The upfront commission fee of USD 793,305 (31 March 2017: USD 156,503) has
been amortised over a period of 5 years.

March 31, 2018 March 31, 2017 7. INVESTMENTS

US$ US$
Profit/(loss) for the period before tax Investments consist of:
71,126 (62,345)
(a) 48.3% of management shares in India Optima Fund (“IOF”), a company
incorporated in Mauritius, for a consideration of USD 12;
Income tax at 15% (10,669) (9,352)
Tax effect of: (b) 4
 9% of management shares in India Opportunities Fund Limited, a
company incorporated in Jersey, for a consideration of USD 13;
Non-allowable expenses - 16
Exempt income (2,898) (1,864) (c) Contribution of USD 9 to The Emerging India Fund Trust for the acquisition
Outside scope of taxation (229) 8 of 90% of management shares of EIFCL for the benefit of the Beneficiaries
Tax loss utilised (7,542) - of the Trust; and
Deemed tax credit - 11,192
Income tax expense - -

115
notes to the financial statements
for the year ended March 31, 2018
(d) Contribution of USD 100 as initial property to The Infra India Trust. 11. PAYABLES

At directors’ valuation March 31, 2018 March 31, 2017 March 31, March 31,
2018 2017
US$ US$
US$ US$
At directors’ valuation
Sundry creditors 9 9
Available-for-sale investments: Accruals 5,562 8,042
India Optima Fund 12 12 Trailer fees 7,080 7,261
India Opportunities Fund Limited 13 13 Advisory fees 22 6,684
25 25 Upfront commission fees payable 124,686 82,272
Other investments: 137,359 104,268
The Emerging India Fund Trust 9 9 The directors believe that the carrying amount of the payables approximate to
The Infra India Trust 100 100 their fair values.
Total investments 134 134
Investments at cost and fair value 134 134
12. FINANCIAL INSTRUMENTS
8. RECEIVABLES AND PREPAYMENTS Fair values
The carrying amounts of investments, receivables, cash at bank, short term
March 31, March 31, bank deposits and payables approximate their fair values due to their short-term
2018 2017
nature.
US$ US$
Deposits 4,909 4,909 March 31, March 31,
Categories of financial instruments: 2017 2017
Management fees receivable 17,400 24,514
US$ US$
Interest receivable on short term bank deposits (see note 9) - 478
Financial assets
Receivables from IOF 4,460 4,460 Investments 134 134
Other prepayments 5,650 5,966 Receivables 33,411 34,361
Deferred upfront commission fee 666,382 148,678 Cash and cash equivalents 155,106 167,327
Other receivables 6,642 - Short term bank deposits 700,000 1,100,000
705,443 189,005 888,651 1,301,822
The directors believe that the receivables approximate to their fair values and
none of the receivables were impaired as at reporting date. Financial liability
The upfront commission fee of USD 793,305 (31 March 17: USD 156,503) (note Payables 137,359 104,268
6 (e)) has been amortised over a period of 5 years / 20 quarters. USD 131,598 137,359 104,268
(31 March 2017: USD 7,825) has been expensed out as upfront commission fee
for the year ended 31 March 2018 and the remaining balance of USD 666,382 Currency profile
(31 March 2017: USD Nil) is shown as a deferred upfront commission fee. The currency profile of the Company’s financial assets and liabilities is
summarized as follows:
9. CASH AT BANK AND SHORT TERM BANK DEPOSITS
Details for cash at bank and short term bank deposits are as follows: Financial Financial Financial Financial
assets liabilities assets liabilities
March 31, March 31, March 31, March 31, March 31, March 31,
2018 2017 2017 2017 2014 2014
US$ US$ US$ US$
US$ US$
Short term bank deposits (see note below) 700,000 1,100,000
Indian rupee (INR) 354 - 356 -
700,000 1,100,000
Mauritian rupee (MUR) 6,378 - 16,109 -
 n 28 March 2018, the Board approved the short-term bank deposits of USD
O United States dollar (US$) 881,919 137,359 1,285,357 104,268
700,000 with SBI (Mauritius) Ltd, at an interest rate of 1.85% per annum and 888,651 137,359 1,301,822 104,268
maturity date of 28 September 2018.
Prepayments amounting to USD 5,650 (31 March 2017: USD 5,966) and

Bank deposits amounting to USD 200,000, USD 100,000 and USD 100,000 were deferred upfront commission fee amounting to USD 666,382 (31 March 2017:
uplifted by the Company on 18 August 2017, 8 November 2017 and 23 March USD 148,678) have not been included in financial assets.
2018 respectively.
Risk management
The Board is ultimately responsible for risk management, which includes the
10. STATED CAPITAL Company’s risk governance structure and maintaining an appropriate internal
control framework. Management’s responsibility is to manage risk on behalf of
March 31, March 31, the Board.
2018 2017
US$ The Company’s activities expose it to a variety of risks management policies,
US$ including:
Issued and fully paid (i). Credit risk
(ii). Liquidity risk
90,000 Ordinary shares of US$ 10 each 900,000 900,000 (iii). Foreign exchange risk
(iv). Interest rate risk
The fully paid ordinary shares carry voting rights and the holders are entitled to
(v). Concentration risk
receive dividends.

116
notes to the financial statements
for the year ended March 31, 2018
(i) Credit risk (v) Concentration risk

Credit risk is the risk of financial loss to the Company if a counterparty to 
The Company invests mainly in Funds which in turn invests in Indian
a financial instrument fails to meet its contractual obligations, and arises equities which involve certain considerations and risks not typically
principally from the Company’s financial assets. associated with investments in other developed markets. Future economic
and political developments in India could adversely affect the liquidity and/
Carrying Carrying or the value of such securities in which the Funds have invested.
amount amount
March 31, March 31, 13. FAIR VALUE MEASUREMENT
2018 2017 A number of assets and liability included in the Company’s financial statements
Notes US$ US$ require measurement at, and/or disclosure of, fair value.
Investments 7 134 134  he fair value measurement of the Company’s financial and non-financial assets
T
Receivables 8 33,411 34,361 and liability utilises market observable inputs and data as far as possible. Inputs
Cash and cash equivalents 155,106 167,327 used in determining fair value measurements are categorised into different
levels based on how observable the inputs used in the valuation technique
Short term bank deposits 9 700,000 1,100,000
utilised are (the ‘fair value hierarchy’):
888,651 1,301,822
Level 1: Quoted prices in active markets for identical items (unadjusted);
 he Company’s credit risk is primarily attributable to its investments,
T
receivables, cash and cash equivalents and short term bank deposits. Level 2: Observable direct or indirect inputs other than Level 1 inputs; and
The amounts presented in the statement of financial position are net
of allowances for doubtful receivables, estimated by the Company’s Level 3: Unobservable inputs (i.e. not derived from market data).
management based on prior experience and the current economic
environment. The classification of an item into the above levels is based on the lowest level of
the inputs used that has a significant effect on the fair value measurement of the
(ii) Liquidity risk item. Transfers of items between levels are recognised in the period they occur.
Prudent liquidity risk management implies maintaining sufficient cash and The following tables set out the fair values of assets and liability that are analysed
the availability of funding through the adequate amount of committed by the level in the fair value hierarchy into which each fair value measurement
credit facilities. is categorised:
The total below illustrates the aged analysis of the Company’s financial
Level 1 Level 2 Level 3 Total
liability.
March 31, March 31, Remaining contractual US$ US$ US$ US$
2018 2017 maturity Assets
US$ US$ Investments - - 134 134
Non-interest bearing Receivables - - 33,411 33,411
financial liability Cash and cash equivalents - - 155,106 155,106
Payables (note 11) Short-term bank deposits - - 700,000 700,000
137,359 104,268 Less than 1year
Total - - 888,651 888,651
137,359 104,268

(iii) Foreign exchange risk Liabilities

The Company’s assets and liability are mostly denominated in United States Payables - - 137,359 137,359
dollar and consequently, the Company is not exposed to the significant risk Total - - 137,359 137,359
that the exchange rate of the USD changes materially relative to any other
 he fair values of receivables, cash and cash equivalents, short term bank
T
currency.
deposits and payables approximate their carrying values due to their short term
(iv) Interest rate risk nature.
Interest income from cash at banks and short term bank deposits may 14. CAPITAL MANAGEMENT
fluctuate in amount, in particular due to changes in the interest rates.
Internally imposed capital requirements
The table below analyses the Company’s interest rate risk exposure in
The Company’s objectives when managing capital are:
terms of the remaining period to the next contractual repricing date or
to the maturity date, whichever is the earlier. The floating rate column - t o provide an adequate return to the shareholder by pricing services
represents the financial assets and liability which have floating rates of commensurate with the level of risk;
interest that do not reprice at set-date, but rather reprice whenever the
underlying interest rate index changes. - to comply with the capital requirements set out by the regulators;

Non- - to safeguard the Company’s ability to continue as a going concern, so that
interest it can continue to provide returns for the shareholder and benefits for other
Floating Floating sensitive stakeholders; and
US$ US$ US$ - to maintain a strong asset base to support the development of business.
31-Mar-18
 he Company sets the amount of capital in proportion to risk. The Company
T
Financial assets 155,106 700,000 33,545 manages the capital structure and makes adjustments to it in the light of changes
Financial liability - - 137,359 in economic conditions and the risk characteristics of the underlying assets. In
order to maintain or adjust the capital structure, the Company may adjust the
31-Mar-17
amount of dividends paid to the shareholder, return capital to the shareholder,
Financial assets 167,327 1,100,000 34,495 issue new shares, or sell assets to reduce debt. The Company does not have
Financial liability - - 104,268 any external debt and therefore, consistently with others in the industry, the
Company is not required to monitor its capital on the basis of the gearing ratio.
Interest rate sensitivity analysis There has not been any change in the way the Company manages its capital.
The impact of a 5% fluctuation in the interest rates would be as follows:
Externally imposed capital requirements
5% increase 5% decrease 5% increase 5% decrease 
The Company has an externally imposed capital required in that it should
March 31, maintain a minimum stated and unimpaired capital of at least Mauritian rupees
March 31, March 31, March 31,
2018 1 million or an equivalent amount. As at 31 March 2018, the Company’s stated
2018 2017 2017
capital was in excess of this minimum requirement.
US$
US$ US$ US$
US$ denominated
Bank interest income 966 (966) 621 (621)
Effect on profit before tax 966 (966) 621 (621)

117
notes to the financial statements
for the year ended March 31, 2018
15. RELATED PARTY TRANSACTIONS 17. HOLDING AND ULTIMATE HOLDING COMPANY
The Company is a wholly owned subsidiary of ICICI Bank Limited. Transactions The directors consider ICICI Bank Limited, incorporated in India as the immediate
with the related parties were carried out on commercial terms and conditions holding and ultimate holding company.
and at market prices. During the year under review, the Company traded with
related parties. The nature, volume of transactions and balance with the related
parties are as follows:
18. EVENTS AFTER THE REPORTING PERIOD
Movement  There have been no material events after the reporting date which would
Balance as at during the Balances as at require disclosure or adjustment to the financial statements for the year ended
Nature of Nature of 31 March 2017 period 31 March 2018 Payable (P)/ 31 March 2018.
Relationship transaction US$ US$ US$ Receivable (R)
Group related
Trailer fees 3,967 (180) 3,787 P
company
Upfront
- 7,500 7,500 P
commission

16. NON-CASH TRANSACTIONS

The directors consider ICICI Bank Limited, incorporated in India as the immediate
holding and ultimate holding company.

March 31, March 31,

2018 2017
US$ US$
Investing activity:
Investment in Infra India Trust (note 7) - 100

Financing activity:
Payables - 100

118
 ICICI Prudential Life Insurance Company Limited
18TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors
Ms. Chanda Kochhar, Mr. V. Sridar Mr. Dileep Choksi Auditors Company Secretary
Chairperson DIN: 02241339 DIN: 00016322 BSR & Co. LLP Vyoma Manek
DIN: 00043617 Chartered Accountants Company Secretary
Mr. M. S. Ramachandran Mr. Sandeep Bakhshi (Registration no. 101248W/W-100022) ACS 20384
Mr. N. S. Kannan DIN: 00943629 DIN: 00109206
DIN: 00066009 Walker Chandiok & Co. LLP Registered & Corporate Office
Mr. Dilip Karnik Mr. Puneet Nanda Chartered Accountants 1089, Appasaheb Marathe Marg,
Mr. Raghunath Hariharan DIN: 06419513 DIN: 02578795 (Registration no. 001076N/N500013) Prabhadevi, Mumbai – 400 025.
DIN: 08007442
Mr. R. K. Nair Mr. Sandeep Batra
Mr. Vinod Kumar Dhall DIN: 07225354 DIN: 03620913
DIN: 02591373

Notes:
1. Mr. Adrian O’Connor (DIN: 02417554) ceased to be a Director with effect from December 13, 2017
2. Mr. Raghunath Hariharan was appointed as a Director with effect from December 14, 2017
3. Prof. Marti G. Subrahmanyam (DIN: 00306761) ceased to be an Independent Director with effect from July 26, 2017
4. Ms. Rama Bijapurkar (DIN: 00001835) ceased to be an Independent Director with effect from January 17, 2018
5. Mr. R. K. Nair has been appointed as an Additional (Independent) Director with effect from July 25, 2017
6. Mr. Dileep Choksi has been appointed as an Additional (Independent) Director with effect from January 19, 2018

119
 management report
for the year ended March 31, 2018
In accordance with the Insurance Regulatory and Development Authority (‘IRDA’) 8. Overall risk exposure and strategy adopted to mitigate the same
(Preparation of Financial Statements and Auditors’ Report of Insurance Companies) The Company recognises that risk is an integral element of the business and
Regulations, 2002, the following Management Report is submitted for the financial managed acceptance of risk is essential for the generation of shareholder
year ended March 31, 2018: value. The risk governance structure of the Company consists of the Board, the
Board Risk Management Committee (BRMC), the Executive Risk Committee
1. Certificate of Registration
(ERC) and its sub-committees. The Board approved risk policy details
The Certificate of Registration under Section 3 of the Insurance Act, 1938 identification, measurement, monitoring and control standards relating to
granted by IRDAI on November 24, 2000 is valid at March 31, 2018 and as on the various individual risks, namely investment (market, credit and liquidity),
the date of this report. insurance and operational risks.
2. Statutory liabilities/dues 8.1. Investment risk
We hereby certify that all dues payable to the statutory authorities have been Investment risk is the risk arising out of variations in the level or volatility of
duly paid except those under dispute or disclosed under contingent liabilities market prices of assets and financial instruments, including the risk arising
in the notes to accounts forming part of the financial statements. from any mismatch between assets and liabilities, due to external market and
economic factors. The Company faces limited liquidity risk due to the nature of
3. Shareholding pattern
its liabilities. The key mitigation approaches for this risk are as follows:
 We hereby confirm that the shareholding pattern of the Company and
any transfer of shares during the year are in accordance with the statutory (a) Product approval process: Launching new products can significantly alter
requirements. the risk profile of the Company’s Balance Sheet. Investment risks inherent
in the new products or significant modifications to existing products are
There was no capital infusion by the promoters during the year. identified at the product design stage and products are launched only
The shareholding pattern is available in Schedule 5A which forms part after approval by the ERC.
of financial statements. Further, the shareholding pattern in accordance (b) Asset Liability Management (ALM): The Company has detailed Investment
with the Securities and Exchange Board of India (Listing Obligations and Specifications that govern the investment strategy and limits for each
Disclosure Requirements) Regulations, 2015, is available on the website of fund depending on the profile of the liability backed by those assets. For
the Company at www.iciciprulife.com and that of the stock exchanges, i.e. each category of products, the Investment Specifications specify limits to
www.nseindia.com and www.bseindia.com. permissible exposures to various asset classes, duration guidelines for
4. Investments outside India fixed income instruments and minimum investment in liquid assets.
We hereby declare that no investments, directly or indirectly have been made (c) Exposure limits have been defined for companies, groups and industries in
outside India from the funds of the holders of policies issued in India. accordance with IRDAI guidelines and the Company’s internal Investment
Policy. The Company restricts investments primarily to securities rated AA
5. Solvency margin and above.
We hereby confirm that the Company has maintained adequate assets to cover (d) The Company has a liquidity contingency plan in place.
both its liabilities and required solvency margin as prescribed under Section
64VA of the Insurance Act, 1938 and the IRDAI (Assets, Liabilities and Solvency 8.2. Insurance Risk
Margin of Life Insurance Business) Regulations, 2016. Insurance risk is the risk arising because of mis-estimation of the best estimate
The actual solvency ratio as compared to required minimum solvency ratio of or because of random fluctuations in the frequency, size and timing of
150% are as below: insurance liabilities. Insurance risk is composed of the following components:
mortality, morbidity, persistency and expense risk. These risks are mitigated
Particulars At At through:
March 31, 2018 March 31, 2017 (a) Product approval process: Insurance risks inherent in the new products or
Actual solvency ratio 252.5% 280.7% significant modifications to existing products are identified at the product
design stage and products are launched only after approval by the ERC.
6. Valuation of assets in the Balance Sheet The Company in its product design incorporates product features and
We certify that the values of all assets have been reviewed on the date of the uses appropriate policy wordings to mitigate insurance risk.
Balance Sheet and to best of our knowledge and belief the assets set forth in (b) Reinsurance: The Company uses appropriate reinsurances arrangements,
the Balance Sheets are shown in the aggregate at amounts not exceeding their including catastrophe reinsurance, to manage insurance risk. The
realisable or market value under the several headings – “Loans”, “Investments”, arrangements are with select and financially sound reinsurers. The
“Agents Balances”, “Outstanding Premiums”, “Interest, Dividend and Rents Company’s reinsurance exposures are considered and approved by the
outstanding”, “Interest, Dividends and Rents accruing but not due”, “Amounts ERC periodically.
due from other persons or bodies carrying on insurance business”, “Sundry
(c) Underwriting and claims controls: Underwriting and claims policies and
Debtors”, “Cash” and items specified under “Other Accounts” except debt
procedures are in place to assess and manage mortality and morbidity
securities held in non-linked and shareholder funds.
risks. The Company seeks to minimise these risks by diversifying
As required by IRDA (Preparation of Financial Statements and Auditor’s its business portfolio and adhering to appropriate and segmented
Report of Insurance Companies) Regulations 2002, all debt securities and underwriting norms. The Company conducts periodic reviews of both
redeemable preference shares made from Policyholders’ non-linked funds underwriting and claims procedures.
and Shareholders’ funds are considered as ‘held to maturity’ and accordingly
(d) Experience analysis: The Company conducts its experience analysis
measured at historical cost, subject to amortisation of premium or accretion of
regularly to ensure that corrective action can be initiated at the earliest
discount.
opportunity and that assumptions used in product pricing, reserving and
The book value and the market value of these investments is as follows: embedded value reporting are in line with experience. The Company
actively monitors its claims experience, persistency levels and expense
(` in ‘000) ratios.
Particulars March 31, 2018 March 31, 2017
(e) Aligning key performance indicators: The Company uses appropriate
Balance Market Balance Market key performance indicators for different levels of hierarchy in sales and
Sheet value value Sheet value value operations to align interests and ensure adequate focus on insurance risk
Debt investments specially, persistency and expense.
in non-linked and
shareholder funds 316,394,442 317,362,557 257,778,202 267,715,218 8.3. Operational risk:
Operational risk is the risk of loss, resulting from inadequate or failed internal
Total investments
in non-linked and processes, people and systems, or from external events.
shareholder funds 410,381,414 411,349,529 337,076,242 347,013,258 The Company uses the following approaches to manage the risk:
(a) The Company develops and monitors mitigation plans for high risk items
7. Application and investments of Life Insurance Funds
identified through the Risk Control Self-Assessment (RCSA) done by each
We certify that no part of the life insurance fund has been directly or indirectly business function, loss events and/or audit findings.
applied in contravention of the provisions of the Insurance Act, 1938 relating to
the application and investments of the life insurance funds and in accordance (b) The Company continuously monitors the internal loss events and ensures
in with IRDAI (Investment) Regulations, 2016. adequate mitigation for high impact events to avoid repeat instances

120
management report
for the year ended March 31, 2018
(c) The Company actively promotes a risk awareness culture by improving
understanding through communication and education amongst
management, employees, contractors and vendors. It further engages
with the law enforcement agencies to create awareness on various
insurance frauds and emerging issues
(d) 
Fraud Management: The Company follows both a proactive and
reactive approach to manage fraud. Proactive management is done by
using triggers to identify suspected frauds and through random sample
checks. Reactive management is done through incident management.
Investigation is done for identification of process/system failures and/
or identification of responsible internal/external parties. The Company
ensures implementation of controls to prevent repeat incidents, financial 9. Operations abroad
recovery process and disciplinary action against involved employees in
accordance to Malpractice Matrix. It also initiates actions through law
enforcement authorities based on severity of the incident.
(e) Outsourcing Risk: Processes of the Company are outsourced as permitted 10. Claims
under the regulatory guidelines. The Company carries out required due-
diligence for any new activity or vendor empanelment.
(f) 
Business Continuity Management (BCM): The Company has a BCM
framework to ensure resilience and continuity of key products and services
at minimum acceptable level to achieve business-as usual presence in the
market place and safety of human resources. This includes systems and
processes including use of disaster recovery sites and business continuity
plans for critical processes which are being tested periodically.
(g) Information and Cyber Security: The Company has an information
and cyber security framework that ensures all information assets are
Continued
safeguarded by establishing comprehensive management processes
throughout the organization. The Company’s controls include deployment
of security solutions like firewall, intrusion prevention system, anti-
malware solution and dynamic URL filtering, further a program for regular
vulnerability assessment of critical IT applications and infrastructure.
(h) 
Whistle-blower policy that facilitates reporting of observed breaches.
Employee Code of Conduct that is laid out with a malpractice matrix
prescribing disciplinary action including caution, deterrent action and
termination based on the nature and seriousness of non-compliant
behavior.
The Company has representative offices in the Kingdom of Bahrain and the
United Arab Emirates. These representative offices do not contract liability
overseas and all the policies are underwritten and issued in India.
The average time taken by the Company from the date of submission of the
final requirement by the claimant to despatch of claim payment, in respect of
mortality and morbidity claims, was as follows:
Period Average time taken for claim settlement (in days)
FY 2018 3
FY 2017 4
FY 2016 5
FY 2015 6
FY 2014 6

The ageing of mortality and morbidity claims registered and not settled at March 31, 2018 has been detailed herein below:
Linked business:
(` in lacs)
Period Up to 30 days Greater than 30 days and Greater than 6 months and Greater than 1 year and up Greater than 5 years
up to 6 months up to 1 year to 5 years
No. of claims Amount No. of claims Amount No. of claims Amount No. of claims Amount No. of claims Amount
FY 2018 213 184 31 89 - - 2 18 - -
FY 2017 249 179 46 103 - - - - - -
FY 2016 412 271 107 241 - - - - 1 9
FY 2015 332 306 161 222 1 3 - - 1 9
FY 2014 287 387 100 236 - - - - 1 6
Non Linked business:
(` in lacs)
Period Up to 30 days Greater than 30 days and Greater than 6 months and Greater than 1 year and up Greater than 5 years
up to 6 months up to 1 year to 5 years
No. of claims Amount No. of claims Amount No. of claims Amount No. of claims Amount No. of claims Amount
FY 2018 44 638 26 1,155 1 26 7 633 - -
FY 2017 29 104 23 881 3 26 2 81 - -
FY 2016 39 472 18 181 - - 5 154 - -
FY 2015 38 334 78 877 3 36 4 135 - -
FY 2014 54 1,245 110 1,726 2 167 1 8 - -
Claims which have remained unpaid for greater than 6 months are due to lack of proof of title or pending receipt of necessary documentation from the customer.

11. Valuation of investments
11.1. Non-linked investments
We hereby certify that as prescribed under the IRDA (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies) Regulations 2002,
all debt securities including government securities and redeemable preference
shares made from Policyholders’ non-linked funds and Shareholders’ funds are
considered as ‘held to maturity’ and accordingly measured at historical cost, subject
to amortisation of premium or accretion of discount over the remaining period of
maturity/holding based on Yield to Maturity (effective interest rate method).
Money market instruments are valued at historical cost, subject to accretion of
discount over the remaining period till maturity based on effective interest rate
method.
Listed equity shares at the Balance Sheet date are stated at fair value being
the last quoted closing price on the National Stock Exchange of India Limited
(‘NSE’) (in case the securities are not listed on NSE, the last quoted closing
price on the BSE Limited (‘BSE’) is used). Unlisted equity shares are stated at
historical cost. Equity shares lent under the Securities Lending and Borrowing
scheme (SLB) continue to be recognised in the Balance Sheet as the Company
retains all the associated risks and rewards of these securities.
Mutual fund units are valued based on previous days’ net asset values.
Unrealised gains/losses arising due to changes in the fair value of listed equity
shares and mutual fund units are taken to the “Fair Value Change Account” in
the Balance Sheet.
Investment property is held to earn rental income or for capital appreciation
and is not occupied by the Company. Investment property is initially valued at
cost including any directly attributable transaction costs. Investment property
is revalued at least once in every three years. The change in carrying amount
of investment property is taken to “Revaluation reserve” in the Balance Sheet.
Investments in venture fund units are valued at historical cost.
Instruments bought on `reverse repo’ basis are valued at cost plus interest
accrued on reverse repo rate.
Fixed deposits with banks are valued at cost.
11.2. Linked investments
We certify that the investments in linked business are valued on mark-to-
market basis.
Central and State government securities are valued as per the valuation price
provided by Credit Rating Information Services of India Limited (‘CRISIL’).
Debt securities other than government securities with a residual maturity over
182 days are valued on a yield to maturity basis, by using spreads over the
benchmark rate (based on the matrix released by the ‘CRISIL’ on daily basis) to
arrive at the yield for pricing the security.
Debt securities with a residual maturity upto 182 days are valued at last
valuation price plus the difference between the redemption value and last
valuation price, based on effective interest rate method over the remaining
term of the instrument.

121
 management report
for the year ended March 31, 2018
Money market instruments are valued at historical cost, subject to accretion 12.1. Asset composition
of discount over the period of maturity/holding based on effective interest rate The portfolio mix of assets of the Company at March 31, 2018 is as follows:
method.
Asset class Linked Non- Shareholders’ Total Amount
Listed equity shares, preference shares and equity ETFs are valued at market
funds Linked funds (` in
value, being the last quoted closing price on the NSE (in case of securities not
funds billion)
listed on NSE, the last quoted closing price on the BSE is used). Equity shares
Equity shares^ 59.4% 16.5% 20.4% 46.7% 651.50
lent under the Securities Lending and Borrowing scheme (SLB) continue to be
Government securities 12.4% 58.5% 34.5% 25.0% 348.27
recognised in the Balance Sheet as the Company retains all the associated risks
Debentures and bonds* 16.4% 15.4% 28.5% 16.8% 234.96
and rewards of these securities.
Money market instruments 8.4% 1.8% 3.2% 6.5% 90.66
Mutual fund units are valued based on previous days’ net asset value. Venture Fixed deposits 0.1% 0.9% 3.1% 0.5% 6.32
fund units are valued at the latest available net asset value of the respective Mutual funds 2.3% 4.2% 3.4% 2.8% 39.08
fund. Investment property 0.0% 0.2% 4.9% 0.3% 4.67
Securities with call option are valued at the lower of the value as obtained by Loan against policies 0.0% 0.4% 0.0% 0.1% 1.45
valuing the security upto final maturity date or the call option date. In case there Net current assets and other 1.0% 2.1% 2.0% 1.3% 18.41
are multiple call options, the security is valued at the lowest value obtained by investments
valuing the security at various call dates or upto the final maturity date. Total 975.02 341.41 78.89 100.0% 1,229.19
Fund mix (%) 69.9% 24.5% 5.6% 100.0% -
Securities with put option are valued at the higher of the value as obtained by
valuing the security upto final maturity date or the put option date. In case there ^ includes investment of ` 3.82 bn in equity exchange traded funds in linked
are multiple put options, the security is valued at the highest value obtained by line of business and ` 0.29 bn in investment in subsidiary in Shareholder line of
valuing the security at various put dates or upto the final maturity date. business
The securities with both put and call option on the same day would be deemed
* includes convertible preference shares
to mature on the put/call date and would be valued on a yield to maturity basis,
by using spreads over the benchmark rate based on the matrix released by The Company has a diversified portfolio spread across various asset classes,
CRISIL. companies, groups and industries. Investments in equity and related
Instruments bought on `reverse repo’ basis are valued at cost plus interest instruments are made with the objective of long term capital appreciation to
accrued on reverse repo rate. deliver superior long-term returns. 79.1% of the equity investments are held in
companies forming part of Nifty 50 and 98.0% in companies forming part of
Unrealised gains and losses are recognised in the Revenue account as
Nifty 500 index.
prescribed by IRDA (Preparation of Financial Statements and Auditors’ Report
of Insurance Companies) Regulations 2002. At March 31, 2017, 95.2% of assets in the fixed income portfolio (including
money market instruments) are in highest credit rated securities (Sovereign/
Fixed deposits with banks are valued at cost.
AAA or equivalent) and 99.2% are in securities rated AA and above. 100% of
12. Review of asset quality and performance of investments the money market instruments have sovereign/A1+ or equivalent rating. The
All investments are made in accordance with the regulatory norms, Investment Company does not hold any non-performing assets in its debt portfolio.
Policy, fund objectives of unit linked funds, asset liability management
guidelines and risk profile of the respective fund.

12.2. Fund performance

Linked funds
As on March 31, 2018, funds representing 54% of the linked assets performed better than the respective benchmark over trailing one year period, 46% of the linked
assets outperformed the benchmark over trailing three years and 96% of linked assets outperformed the benchmark over trailing five years. Since the benchmark of
funds does not carry fund management charges, the above performance are after adjusting fund management charges in benchmark.
The fund performance of linked funds, which have completed three years and with an asset size of over ` 5.00 billion, for one year and trailing three years is as follows:

Fund name SFIN Assets held* 1 year return 3 year return

(` billion)
Annualised returns
Fund Benchmark Fund Benchmark
Equity funds
Maximiser Fund V ULIF 114 15/03/11 LMaximis5 105 245.32 9.20% 10.62% 5.37% 6.86%
Multi Cap Growth Fund ULIF 085 24/11/09 LMCapGro 105 80.55 12.54% 11.47% 9.75% 8.49%
Maximiser Fund ULIF 001 22/10/01 LMaximis1 105 32.68 8.89% 10.62% 5.14% 6.86%
Life Growth Fund ULIF 134 19/09/13 LGF 105 19.54 8.41% 10.62% 4.69% 6.86%
Dynamic P/E Fund ULIF 097 11/01/10 LDynmicPE 105 18.60 6.12% 9.03% 4.91% 6.73%
Pension Flexi Growth Fund ULIF 029 20/03/07 PFlexiGro1 105 15.33 11.58% 11.47% 8.91% 8.49%
Flexi Growth Fund II ULIF 027 20/03/07 LFlexiGro2 105 11.31 13.31% 11.47% 9.82% 8.49%
Pension Flexi Growth Fund II ULIF 030 20/03/07 PFlexiGro2 105 10.67 12.80% 11.47% 10.11% 8.49%
Pension RICH Fund ULIF 052 17/03/08 PRICH1 105 10.66 10.32% 11.04% 6.20% 7.80%
Pension Multi Cap Growth Fund ULIF 091 11/01/10 PMCapGro 105 10.52 13.03% 11.47% 9.79% 8.49%
Maximiser Fund II ULIF 012 17/05/04 LMaximis2 105 10.02 9.32% 10.62% 5.92% 6.86%
Pension Maximiser Fund II ULIF 013 17/05/04 PMaximis2 105 9.88 10.56% 10.62% 6.23% 6.86%
Bluechip Fund ULIF 087 24/11/09 LBluChip 105 9.60 8.74% 10.25% 6.39% 6.00%
Flexi Growth Fund ULIF 026 20/03/07 LFlexiGro1 105 9.24 12.54% 11.47% 9.02% 8.49%
RICH Fund II ULIF 049 17/03/08 LRICH2 105 7.81 11.21% 11.04% 6.62% 7.80%
Flexi Growth Fund IV ULIF 038 27/08/07 LFlexiGro4 105 6.97 13.43% 11.47% 10.01% 8.49%
Pension Dynamic P/E Fund ULIF 098 11/01/10 PDynmicPE 105 6.63 5.98% 9.03% 4.83% 6.73%

122
management report
for the year ended March 31, 2018 Continued

Fund name SFIN Assets held* 1 year return 3 year return

(` billion)
Annualised returns
Fund Benchmark Fund Benchmark
Pension RICH Fund II ULIF 053 17/03/08 PRICH2 105 6.52 11.20% 11.04% 6.77% 7.80%
Opportunities Fund ULIF 086 24/11/09 LOpport 105 6.28 11.67% 11.04% 7.40% 7.80%
Health Flexi Growth Fund ULIF 057 15/01/09 HFlexiGro 105 5.61 12.38% 11.47% 7.42% 8.49%
Pension Maximiser Fund ULIF 004 03/05/02 PMaximis1 105 5.14 8.65% 10.62% 4.96% 6.86%
Balanced funds
Highest NAV Fund B ULIF 116 15/03/11 LHighNavB 105 42.05 3.92% NA 5.02% NA
Multi Cap Balanced Fund ULIF 088 24/11/09 LMCapBal 105 14.73 9.50% 8.71% 8.24% 8.57%
Group Balanced Fund II ULGF 041 30/04/13 GBalancer2 105 12.92 5.59% 5.99% 6.33% 8.05%
Group Balanced Fund ULGF 001 03/04/03 GBalancer 105 11.57 5.91% 5.99% 6.73% 8.05%
Balancer Fund ULIF 002 22/10/01 LBalancer1 105 9.06 7.65% 7.13% 6.88% 7.90%
Pinnacle Fund ULIF 081 26/10/09 LPinnacle 105 7.64 5.87% NA 5.78% NA
Group SA Balanced Fund ULGF 051 03/04/03 GSBLN 105 7.30 5.49% 5.99% 6.58% 8.05%
Debt funds
Income Fund ULIF 089 24/11/09 LIncome 105 63.44 5.30% 5.11% 7.67% 8.11%
Life Secure Fund ULIF 135 19/09/13 LSF 105 16.26 4.10% 5.11% 6.99% 8.11%
Pension Protector Fund ULIF 006 03/05/02 PProtect1 105 12.00 4.61% 5.11% 6.68% 8.11%
Pension Income Fund ULIF 095 11/01/10 PIncome 105 5.55 5.20% 5.11% 7.34% 8.11%
Group Debt Fund ULGF 002 03/04/03 GDebt 105 5.51 4.95% 5.11% 7.21% 8.11%
Group SA Debt Fund ULGF 053 03/04/03 GSSTD 105 5.44 4.77% 5.11% 7.15% 8.11%
Protector Fund ULIF 003 22/10/01 LProtect1 105 5.19 4.40% 5.11% 7.07% 8.11%
Liquid funds
Discontinued Fund – Life ULIF 100 01/07/10 LDiscont 105 50.61 5.99% NA 6.93% NA
Money Market Fund ULIF 090 24/11/09 LMoneyMkt 105 32.22 6.16% 6.84% 7.15% 7.33%
* Assets held at March 31, 2018

Non-linked and Shareholders’ funds

The fund performance of non-linked Policyholders’ and Shareholders’ funds are as follows:

Particulars Assets held* 1 year return 3 years return^

(` billion)
Market value Book value Market value Book value
Policyholders’ fund
Participating 143.48 7.05% 10.99% 8.84% 9.83%
Non-participating 197.93 6.34% 7.96% 8.33% 8.11%
Shareholders’ fund 78.89 9.92% 11.49% 9.22% 11.37%
* Assets held at March 31, 2018 at carrying value
^ annualised

13. Payments made to parties in which Directors are interested

The details of such payments for the year ended March 31, 2018 are given below: (` in 000)

Name of Director Entity in which Director is interested   Interested as Amount paid

FY2018 FY2017*
Chanda Kochhar ICICI Bank Limited Managing Director & CEO 14,490,206 13,275,376
ICICI Prudential Asset Management Company Limited Chairperson - 320
ICICI Securities Limited Chairperson 513,688 729,181
ICICI Lombard General Insurance Company Limited Chairperson 259,801 120,508
ICICI Foundation for Inclusive Growth Chairperson- Governing Council 172,769 170,263
N. S. Kannan ICICI Bank Limited Director 14,490,206 13,275,376
ICICI Lombard General Insurance Company Limited Director 259,801 120,508
ICICI Prudential Asset Management Company Limited Director - 320
ICICI Foundation for Inclusive Growth Member - Governing Council 172,769 170,263
Vinod Kumar Dhall Schneider Electric Infrastructure Limited Director/Chairman - 3
ICICI Securities Limited Director 513,688 729,181

123
 management report
for the year ended March 31, 2018 Continued

Name of Director Entity in which Director is interested   Interested as Amount paid

FY2018 FY2017*
V. Sridhar ICICI Bank Limited Director 14,490,206 13,275,376
Sandeep Batra ICICI Prudential Life Insurance Company Limited Trustee 133,552 114,772
Employees’ Provident Fund
ICICI Prudential Life Insurance Company Limited Trustee 191,680 178,350
Employees’ Group Gratuity Cum Life Insurance Scheme
ICICI Prudential Life Insurance Company Limited Trustee 8,086 6,845
Superannuation Scheme
Sandeep Bakhshi ICICI Foundation for Inclusive Growth Trustee 172,769 170,263
Dilip Karnik ICICI Prudential Asset Management Company Limited Director - 320
(From June 29, 2016)
Dileep Choksi ICICI Bank Limited Director 14,490,206 13,275,376
(From January 19, 2018)
ICICI Home Finance Company Limited Director 11,554 2,061

*Previous year numbers have been updated, in cases where there is change of director or their interested entities, as the case maybe

14. Management Responsibility Statement

The Management confirms that:
i. In the preparation of financial statements, the applicable accounting standards, principles and policies are followed along with proper explanations relating to
material departures, if any;
ii. The management has adopted accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company at the end of the financial year and of the operating profit and of the profit of the Company for the year;
iii. The management has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the applicable provisions of the
Insurance Act, 1938, Companies Act 2013 and Companies Act, 1956 to the extent applicable, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
iv. The management has prepared the financial statements on a going concern basis;
v. The management has ensured that an internal audit system commensurate with the size and nature of the business exists and is operating effectively.

For and on behalf of the Board of Directors

Chanda Kochhar V. Sridar Sandeep Bakhshi

Chairperson Director Managing Director and CEO
DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan Asha Murali
Executive Director Chief Financial Officer Appointed Actuary
DIN:03620913

Place : Mumbai
Date : April 24, 2018

124
independent auditors’ report
To the members of ICICI Prudential Life Insurance Company Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of ICICI Prudential
Life Insurance Company Limited (the “Company”), which comprise the Balance Sheet
as at March 31, 2018, the Revenue Account (also called the “Policyholders’ Account”
or the “Technical Account”), the Profit and Loss Account (also called the “Shareholders’
Account” or the “Non-Technical Account”) and the Receipts and Payments Account
for the year then ended and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT’S RESPONSIBILTY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5)
of the Companies Act, 2013 (the “Act”) with respect to the preparation of these standalone
financial statements that give a true and fair view of the state of affairs, net surplus,
profit and receipts and payments of the Company in accordance with the accounting
principles generally accepted in India, including the provisions of The Insurance Act,
1938 (amended by the Insurance Laws (Amendment) Act, 2015) (the “Insurance Act”),
the Insurance Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the
Insurance Regulatory and Development Authority (Preparation of Financial Statements
and Auditors’ Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial
Statements Regulations”) and orders/directions/circulars issued by the Insurance
Regulatory and Development Authority of India (“IRDAI”/ “Authority”) in this regard, and
Accounting Standards specified under section 133 of the Act, to the extent applicable.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation
of the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.  the provisions of the Insurance Act, the Regulations and orders / directions /
AUDITORS’ RESPONBILITY
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. We have taken into account the provisions of the Act, the Insurance
Act, the IRDA Act, the IRDA Financial Statement Regulations, orders/directions/circulars
issued by the IRDAI, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and Rules
made thereunder.
We conducted our audit of standalone financial statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the standalone financial statements. The procedures selected depend
on the auditors’ judgment, including the assessment of the risks of material misstatement
of the standalone financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Company’s
preparation of the financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company’s Directors, as well as evaluating the
overall presentation of the standalone financial statements.
We are also responsible to conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in the auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify
the opinion. Our conclusions are based on the audit evidence obtained up to the date of
the auditor’s report. However, future events or conditions may cause an entity to cease
to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion, and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
in accordance with the Insurance Act, the IRDA Act, the IRDA Financial Statements
Regulations and the Act to the extent applicable and in the manner so required, and give
a true and fair view in conformity with the accounting principles generally 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 March
31, 2018;
(b) in the case of Revenue Account, of the net surplus for the year ended on that date;
(c) in the case of Profit and Loss Account, of the profit for the year ended on that date;
and
(d) in the case of the Receipts and Payments Account, of the receipts and payments
for the year ended on that date.
OTHER MATTERS
The actuarial valuation of liabilities for life policies in force and policies where premium is
discontinued is the responsibility of the Company’s Appointed Actuary (the “Appointed
Actuary”). The actuarial valuation of these liabilities for life policies in force and for
policies in respect of which premium has been discontinued but liability exists as at
March 31, 2018 has been duly certified by the Appointed Actuary and in her opinion, the
assumptions for such valuation are in accordance with the guidelines and norms issued
by the IRDAI and the Institute of Actuaries of India in concurrence with the Authority.
We have relied upon the Appointed Actuary’s certificate in this regard for forming our
opinion on the valuation of liabilities for life policies in force and for policies in respect of
which premium has been discontinued but liability exists, as contained in the standalone
financial statements of the Company. Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the IRDA Financial Statements Regulations, we have issued
a separate certificate dated April 24, 2018 certifying the matters specified in
paragraphs 3 and 4 of Schedule C to the IRDA Financial Statements Regulations.
2. As required by the IRDA Financial Statements Regulations, read with section 143(3)
of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purposes of our
audit and have found them to be satisfactory;
(b) In our opinion and to the best of our information and according to the
explanations given to us, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of those
books;
(c) As the Company’s financial accounting system is centralized, no returns for
the purposes of our audit are prepared at the branches of the Company;
(d) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the
Receipts and Payments Account dealt with by this Report are in agreement
with the books of account;
(e) In our opinion and to the best of our information and according to the
explanations given to us, investments have been valued in accordance with
circulars issued by IRDAI in this regard;
(f) In our opinion and to the best of our information and according to the
explanation given to us, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act to the
extent not inconsistent with the accounting principles prescribed in the IRDA
Financial Statements Regulations and orders / directions / circulars issued by
IRDAI in this regard;
(g) In our opinion and to the best of our information and according to the
explanations given to us, the accounting policies selected by the Company
are appropriate and are in compliance with the Accounting Standard referred
to in Section 133 of the Companies Act and with the accounting principles
as prescribed in the IRDAI Financial Statements Regulations and orders/
directions issued by the IRDAI in this regard.
(h) On the basis of written representations received from the directors, as on
March 31, 2018 and taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2018 from being appointed as a
Director in terms of Section 164 (2) of the Act;
(i) With respect to the adequacy of the internal financial controls with reference
to financial statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in “Annexure A”; and
(j) With respect to the other matters to be included in the Auditors’ Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the
explanations given to us:
a) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer schedule 16 note
3.45 to the financial statements;
b) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any, on
long-term contracts including derivatives contracts – Refer schedule
16 note 3.46 to the financial statements; and
c) There has been no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company; and
d) The disclosure requirement as envisaged in Notification G.S.R 308(E)
dated March 30, 2017 is not applicable to the Company.
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
125
annexure a to the independent auditor’s report
of even date on the standalone financial statements of icici Prudential Life Insurance Company Limited
Independent Auditor’s Report on the Internal Financial Controls
under Section 143(3)(i) of the Companies Act, 2013 (“the Act”)
To the Members of assurance that transactions are recorded as necessary to permit preparation of
ICICI Prudential Life Insurance Company Limited financial statements in accordance with generally accepted accounting principles,
We have audited the internal financial controls over financial reporting of ICICI
Prudential Life Insurance Company Limited (the “Company”) as of March 31, 2018 in
conjunction with our audit of the standalone financial statements of the Company for
the year ended on that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India (the “ICAI”). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of the company’s business, including
adherence to the Company’s policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required
under the Act.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Auditing as specified under
section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and issued by the
ICAI. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls over financial
reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company’s internal financial controls over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial controls
independent auditors’ certificate
To,
The Board of Directors,
ICICI Prudential Life Insurance Company Limited,
ICICI Pru Life Towers,
1089, Appasaheb Marathe Marg,
Prabhadevi,
Mumbai - 400 025.
Dear Sirs,
(Referred to in paragraph 1 of our Independent Auditors’ Report on Other Legal and
Regulatory Requirements forming part of the Independent Auditors’ Report dated
24 April 2018)
1. This certificate is issued in accordance with the terms of our engagement
letter with ICICI Prudential Life Insurance Company Limited (the “Company”),
wherein we are requested to issue certificate for compliance with the
provisions of paragraphs 3 and 4 of Schedule C of the Insurance Regulatory
and Development Authority (Preparation of Financial Statements and Auditor’s
Report of Insurance Companies) Regulations 2002, (the “IRDA Financial
Statements Regulations”) read with regulation 3 of the IRDA Financial
Statements Regulations.
126
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL
REPORTING
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
controls over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
OTHER MATTER
The actuarial valuation of liabilities for life policies in force and policies where
premium is discontinued but liability exists as at March 31, 2018 has been certified
by the Appointed Actuary as per the IRDA Financial Statements Regulations, and has
been relied upon by us, as mentioned in “Other Matter” of our audit report on the
standalone financial statements for the year ended March 31, 2018. Accordingly, our
opinion on the internal financial controls over financial reporting does not include
reporting on the operating effectiveness of the management’s internal controls over
the valuation and accuracy of the aforesaid actuarial valuation.
Our opinion is not modified in respect of the above matter.
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
Management’s responsibility
2. The Company’s Board of Directors is responsible for complying with the provisions
of The Insurance Act, 1938 (amended by the Insurance Laws (Amendment)
Act 2015) (the “Insurance Act”), the Insurance Regulatory and Development
Authority Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditor’s Report of Insurance
Companies) Regulations, 2002 (the “IRDA Financial Statements Regulations”),
orders/directions issued by the Insurance Regulatory and Development Authority
of India (the “IRDAI”) which includes the preparation of the Management Report.
This includes collecting, collating and validating data and designing, implementing
and monitoring of internal controls suitable for ensuring the aforesaid and applying
an appropriate basis of preparation.
Auditors’ responsibility
3. Pursuant to the requirements, it is our responsibility to obtain reasonable
assurance and form an opinion based on our audit and examination of books
and records as to whether the Company has complied with the matters
contained in paragraphs 3 and 4 of Schedule C of the IRDA Financial Statements
Regulations read with Regulation 3 of IRDA Financial Statements Regulations.
independent auditors’ certificate
4. We audited financial statements of the Company as of and financial year ended
31 March 2018 on which we issued an unmodified audit opinion vide our report
dated 24 April 2018. Our audits of these financial statements were conducted in
accordance with the Standards on Auditing and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of India
(‘ICAI’). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the standalone financial statements are
free of material misstatement. Our audits were not planned and performed in
connection with any transactions to identify matters that may be of potential
interest to third parties.
5. We conducted our examination in accordance with the Guidance Note on
Reports or Certificates for Special Purposes (Revised 2016) (the ‘Guidance
Note’) issued by the Institute of Chartered Accountants of India (‘ICAI’). The
Guidance Note requires that we comply with the independence and other
ethical requirements of the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard
on Quality Control (‘SQC’) 1, Quality Control for Firms that Perform Audits and
Reviews of Historical Financial Information, and Other Assurance and Related
Services Engagements.
Opinion
7. In accordance with information and explanations given to us and to the best
of our knowledge and belief and based on our examination of the books of
account and other records maintained by the Company for the year ended
March 31, 2018, we certify that:
(a) 
We have reviewed the attached Management Report to the financial
statements for year ended March 31, 2018, and on the basis of our review,
there is no apparent mistake or material inconsistencies with the financial
statements;
independent auditors’ certificate
To
The Board of Directors
ICICI Prudential Life Insurance Company Limited
ICICI Prulife Towers
1089, Appasaheb Marathe Marg Prabhadevi
MUMBAI - 400 025
Independent Auditors’ Certificate in accordance with Schedule I(B)(11)(d) of the
Insurance Regulatory and Development Authority of India (Investment) Regulations,
2016 dated August 1, 2016.
1. This certificate is issued in accordance with terms of our engagement letter with
ICICI Prudential Life Insurance Company Limited (the “Company”) and Insurance
Regulatory and Development Authority of India (Investment) Regulations, 2016
dated August 1, 2016 (the “Regulations”), wherein we are requested to issue
certificate regarding applicable Net Asset Value (“NAV”) for applications received
as at March 31, 2018 in terms of Schedule I(B)(11)(d) to the Regulations.
Management’s responsibility
2. The preparation and maintenance of all accounting and other relevant supporting
records and documents is the responsibility of the management of the Company.
This responsibility includes the design, implementation and maintenance of
internal controls relevant to the applicability of NAV for applications received as at
March 31, 2018.
3. The Company’s management is responsible for complying with conditions stated
in the Regulations.
Auditors’ responsibility
4. Pursuant to the requirements of this certificate, it is our responsibility to provide
reasonable assurance as to whether:
(a) The applications received on Saturday, March 31, 2018 upto 3.00 p.m. have
been stamped and that the NAV of March 31, 2018 is applied for applications
received upto 3.00 p.m;
(b) The applications received on Saturday, March 31, 2018 after 3.00 p.m. have
been stamped and that the NAV of April 02, 2018 is applied for applications
received after 3.00 p.m; and
(c) The Company has declared NAV for March 31, 2018 which is a business day,
on a basis consistent with its accounting policy as disclosed in its financial
statements for the year ended March 31, 2018.
5. In this connection, we have performed the following procedures:
a) Obtained the list of applications for New Business, Renewal premium, Top up,
Surrender, Free – Look Cancellation, Fund Switches, Withdrawal and Partial
Withdrawal received in respect of Unit Linked Products on March 31, 2018
(together referred to as “Application Forms”), from the Company;
b) Selected samples of application forms from listing mentioned in paragraph
5(a) above and verified whether:
i) The applications received on Saturday, March 31, 2018, upto 3.00 p.m.
have been appropriately stamped and the NAV of March 31, 2018 is
applied for such applications for the selected samples; and
(b) 
Based on management representations and compliance certificates
submitted to the Board of Directors by the officers of the Company
charged with compliance and the same being noted by the Board, nothing
has come to our attention that causes us to believe that the Company has
not complied with the terms and conditions of registration as stipulated by
the IRDAI;
(c) We have verified the cash balances, to the extent considered necessary
and securities relating to the Company’s loans and investments as
at March 31, 2018, by actual inspection or on the basis of certificates/
confirmations received from the Custodian and/ or Depository Participants
appointed by the Company, as the case may be. As at March 31, 2018, the
Company does not have reversions and life interests;
(d) The Company is not a trustee of any trust; and
(e) No part of the assets of the Policyholders’ Funds has been directly or
indirectly applied in contravention to the provisions of the Insurance Act
relating to the application and investments of the Policyholders’ Funds.
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
ii) The applications received on Saturday, March 31, 2018, after 3.00 p.m.
have been appropriately stamped and the NAV of April 02, 2018 is applied
for such applications for the selected samples.
c) We have read the certificate dated April 13, 2018 of the concurrent auditors of the
Company, M/s. Chokshi and Chokshi LLP, Chartered Accountants which has been
furnished to us certifying compliance with Regulation 5 of Schedule I (B);
d) Obtained representation from the management that the Company has
declared March 31, 2018 as a business day for accepting application forms
and that it has declared NAV for March 31, 2018.
6. We have examined other relevant records of the Company, to the extent necessary
for the purpose of issuing this certificate and have conducted our examination in
accordance with the Guidance Note on Reports or Certificates for Special Purposes
(Revised 2016), issued by the Institute of Chartered Accountants of India (the
“ICAI”). The Guidance Note requires that we comply with the independence and
other ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality
Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical
Financial Information, and Other Assurance and Related Services Engagements.
Opinion
8.  Based on our examination, as above and information, explanations and
representations given to us by the Company’s management, we report that:
(a) The applications received on Saturday, March 31, 2018 upto 3.00 p.m. have
been stamped and that the NAV of March 31, 2018 is applied for applications
received upto 3.00 p.m.;
(b) The applications received on Saturday, March 31, 2018 after 3.00 p.m. have
been stamped and that the NAV of April 02, 2018 is applied for applications
received after 3.00 p.m.; and
(c) The Company has declared NAV for March 31, 2018 which is a business day,
on a basis consistent with its accounting policy as disclosed in its financial
statements for the year ended March 31, 2018.
Restriction on Use
9. This certificate is addressed to and provided to Board of Directors of the Company,
solely for inclusion in the annual accounts of the Company as per Schedule I(B)
(11)(d) of the Regulations and should not be used by any other person or for any
other purpose. We have no responsibility to update this certificate for events and
circumstances occurring after the date of this certificate.
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
127
 revenue account
for the year ended March 31, 2018

FORM A-RA
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000
Revenue Account for the year ended March 31, 2018
Policyholders’ Account (Technical Account) (` in ‘000)
Particulars Schedule Par Life Par Non Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Pension Par Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Premiums earned (Net of service tax / Goods & Service tax)
(a) Premium 1 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
(b) Reinsurance ceded (24,208) (51) (1,710,049) - - - (45,790) (486,475) (74) (314,234) (36) - (2,580,917)
(c) Reinsurance accepted - - - - - - - - - - - - -
Sub-total 31,777,996 276,354 29,261,540 352,309 9,300 3,107,546 247,678 189,525,876 5,513,007 716,461 4,666,973 2,651,735 268,106,775
Income from Investments
(a) Interest, dividend & rent - Gross 7,189,183 809,086 8,945,765 82,440 11,208 1,862,716 27,868 20,910,983 4,123,959 247,141 2,257,152 1,664,246 48,131,747
(b) Profit on sale/redemption of investments 4,073,649 611,979 1,712,448 2,131 13 47,596 43,207 47,180,542 22,804,776 978,411 1,983,320 594,747 80,032,819
(c) (Loss) on sale/redemption of investments (427,176) (2,249) (560,996) - (394) (522) - (7,663,294) (1,646,178) (87,493) (566,560) (332,079) (11,286,941)
(d) Transfer/gain on revaluation/change in fair value - - - - - - - 756,321 (8,529,603) (103,407) (1,116,515) 15,635 (8,977,569)
(e) Accretion of discount/(amortisation of premium) (Net) (96,148) 22,239 (32,002) 2,371 380 11,644 217 3,939,345 421,916 12,301 117,274 315,104 4,714,641
Sub-total 10,739,508 1,441,055 10,065,215 86,942 11,207 1,921,434 71,292 65,123,897 17,174,870 1,046,953 2,674,671 2,257,653 112,614,697
Other income
Contribution from the Shareholders' account - - - - - 752,784 - - - - - - 752,784
Income on unclaimed amount of policyholders - - - - - - - 500,740 - - - - 500,740
Fees and charges 77,847 355 103,824 - - - 70 416 - - - - 182,512
Miscellaneous income 1,973 15 1,998 6 - 180 19 11,811 344 61 281 114 16,802
Sub-total 79,820 370 105,822 6 - 752,964 89 512,967 344 61 281 114 1,452,838
Total (A) 42,597,324 1,717,779 39,432,577 439,257 20,507 5,781,944 319,059 255,162,740 22,688,221 1,763,475 7,341,925 4,909,502 382,174,310
Commission 2 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Operating expenses related to Insurance business 3 3,112,403 16,784 4,464,471 5,332 608 64,862 162,219 11,910,106 377,325 64,858 72,810 47,534 20,299,312
Provision for doubtful debts (4,136) (56) (3,884) - - (132) 44 (7,825) (752) (217) - - (16,958)
Bad debts written off 8,891 (7) 7,090 - - 125 177 31,308 202 8 9 - 47,803
Provisions (other than taxation)
(a) For diminution in the value of investments (Net)- Refer 23,865 - 27,007 - - - - - - - - - 50,872
note 3.26 of schedule 16
(b) Others - - - - - - - - - - - - -
Service tax/Goods & Service Tax charge on linked charges - - - - - - - 4,798,211 518,259 168,799 83,877 75,974 5,645,120
Total (B) 5,791,041 19,213 6,275,327 5,332 608 76,680 197,394 26,242,243 931,493 239,350 156,696 123,508 40,058,885
Benefits paid (Net) 4 6,254,660 1,321,065 2,859,951 385,564 16,900 1,591,003 24,674 105,169,157 46,520,242 396,667 4,998,409 2,720,325 172,258,617
Interim bonus paid 547,078 2,161 - - - - - - - - - - 549,239
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/mathematical reserves)(Gross) 25,849,969 70,663 49,203,820 41,830 2,270 4,114,261 158,692 55,100 (72,236) 50,801 (4,873) 512 79,470,809
(b) Amount ceded in reinsurance - - (20,958,405) - - - (273,800) - - - - - (21,232,205)
(c) Amount accepted in reinsurance - - - - - - - - - - - - -
(d) Fund reserve - - - - - - - 106,625,977 (27,648,442) 729,575 2,102,039 1,949,699 83,758,848
(e) Funds for discontinued policies - - - - - - - 12,223,005 254,515 - - - 12,477,520
Total (C) 32,651,707 1,393,889 31,105,366 427,394 19,170 5,705,264 (90,434) 224,073,239 19,054,079 1,177,043 7,095,575 4,670,536 327,282,828
Surplus/(deficit) (D) =(A)-(B)-(C) 4,154,576 304,677 2,051,884 6,531 729 - 212,099 4,847,258 2,702,649 347,082 89,654 115,458 14,832,597
Provision for taxation
(a) Current tax credit/(charge)-Refer note 3.7 of schedule 16 (1,200,710) - - - - - - - - - - - (1,200,710)
(b) Deferred tax credit/(charge)-Refer note 3.7 of schedule 16 - - - - - - - (6) - - - - (6)
Surplus/(deficit) after tax 2,953,866 304,677 2,051,884 6,531 729 - 212,099 4,847,252 2,702,649 347,082 89,654 115,458 13,631,881
Appropriations
Transfer to Shareholders' account 489,779 28,884 2,051,884 6,531 729 - 212,099 4,847,290 2,702,746 347,082 89,654 115,458 10,892,136
Transfer to other Reserves - - - - - - - - - - - - -
Balance being funds for future appropriation 2,464,087 275,793 - - - - - (38) (97) - - - 2,739,745
Total 2,953,866 304,677 2,051,884 6,531 729 - 212,099 4,847,252 2,702,649 347,082 89,654 115,458 13,631,881
Details of Surplus after tax
(a) Interim bonuses paid 547,078 2,161 - - - - - - - - - - 549,239
(b) Allocation of bonus to policyholders' 3,860,936 257,795 - - - - - - - - - - 4,118,731
(c) Surplus shown in the Revenue Account 2,953,866 304,677 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 12,879,097
Total Surplus 7,361,880 564,633 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 17,547,067
Funds for future appropriation
Opening balance as at April 1, 2017 3,915,268 2,118,419 - - - - - 3,251 4,920 - - - 6,041,858
Add: Current period appropriation 2,464,087 275,793 - - - - - (38) (97) - - - 2,739,745
Balance carried forward to Balance Sheet 6,379,355 2,394,212 - - - - - 3,213 4,823 - - - 8,781,603
Significant accounting policies & notes 16
The schedules and accompanying notes referred to herein form an integral part of the Revenue Account.

As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Revenue Account as expenses.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.
As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

128
revenue account
for the year ended March 31, 2017

FORM A-RA
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000
Revenue Account for the year ended March 31, 2017
Policyholders’ Account (Technical Account) (` in ‘000)
Particulars Schedule Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group
Pension
Premiums earned (Net of service tax)
(a) Premium 1 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
(b) Reinsurance ceded (16,701) (47) (1,158,189) - - - (35,294) (459,637) (83) (317,561) (32) (1,987,544)
(c) Reinsurance accepted - - - - - - - - - - - -
Sub-total 25,609,818 329,776 26,824,429 891,208 137,913 2,058,089 101,314 150,579,078 6,606,743 874,720 7,539,388 221,552,476
Income from Investments
(a) Interest, dividend & rent - Gross 5,773,911 799,264 7,460,821 39,612 6,385 1,825,435 44,227 17,345,787 4,630,897 224,585 3,778,245 41,929,169
(b) Profit on sale/redemption of investments 1,887,566 166,343 740,144 1,801 - 406,141 1,813 41,439,269 23,593,975 616,524 3,130,259 71,983,835
(c) (Loss) on sale/redemption of investments (87,526) (14,080) (26,708) (131) - (8,306) - (7,203,558) (2,271,478) (50,164) (796,182) (10,458,133)
(d) Transfer/gain on revaluation/change in fair value - - - - - - - 35,476,906 3,563,819 573,404 965,284 40,579,413
(e) Accretion of discount/(amortisation of premium) (Net) 31,101 37,212 (35,482) 1,249 811 (2,263) 562 4,457,152 576,893 15,112 652,823 5,735,170
Sub-total 7,605,052 988,739 8,138,775 42,531 7,196 2,221,007 46,602 91,515,556 30,094,106 1,379,461 7,730,429 149,769,454
Other income
Contribution from the Shareholders' account - - - 16,204 1,815 - - - - - - 18,019
Income on unclaimed amount of policyholders - - - - - - - 403,684 - - - 403,684
Fees and charges 71,575 608 96,548 - - - 129 353 - - - 169,213
Miscellaneous income 3,186 21 2,905 2 - 36 10 10,728 465 39 166 17,558
Sub-total 74,761 629 99,453 16,206 1,815 36 139 414,765 465 39 166 608,474
Total (A) 33,289,631 1,319,144 35,062,657 949,945 146,924 4,279,132 148,055 242,509,399 36,701,314 2,254,220 15,269,983 371,930,404
Commission 2 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Operating expenses related to Insurance business 3 3,760,917 21,109 4,082,671 16,232 1,924 41,186 12,382 14,850,268 541,266 74,425 169,581 23,571,961
Provision for doubtful debts (9,331) (34) (15,982) (75) - 12 (41) (29,406) (323) (125) (100) (55,405)
Bad debts written off 22,019 187 26,268 - - 171 225 62,992 3,518 703 1 116,084
Provisions (other than taxation)
(a) For diminution in the value of investments (Net) - Refer 33,361 - 31,764 - - - - - - - - 65,125
note 3.26 of schedule 16
(b) Others - - - - - - - - - - - -
Service tax charge on linked charges - - - - - - - 3,390,007 497,356 145,390 129,909 4,162,662
Total (B) 5,717,270 22,925 5,529,097 16,182 1,924 43,002 15,965 22,489,656 1,086,668 227,507 299,391 35,449,587
Benefits paid (Net) 4 4,942,515 869,817 1,992,768 10,158 8,157 1,470,677 27,957 86,684,624 42,727,402 377,289 10,532,722 149,644,086
Interim bonus paid 330,901 3,763 - - - - - - - - - 334,664
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/mathematical reserves)(Gross) 20,179,513 42,196 48,659,800 923,605 136,843 1,704,143 (32,576) 1,053,994 (109,534) 52,992 (17,256) 72,593,720
(b) Amount ceded in reinsurance - - (23,446,270) - - - - - - - - (23,446,270)
(c) Amount accepted in reinsurance - - - - - - - - - - - -
(d) Fund reserve - - - - - - - 124,354,140 (10,374,995) 1,220,604 4,262,086 119,461,835
(e) Funds for discontinued policies - - - - - - - 5,905,839 460,426 - - 6,366,265
Total (C) 25,452,929 915,776 27,206,298 933,763 145,000 3,174,820 (4,619) 217,998,597 32,703,299 1,650,885 14,777,552 324,954,300
Surplus/(deficit) (D) =(A)-(B)-(C) 2,119,432 380,443 2,327,262 - - 1,061,310 136,709 2,021,146 2,911,347 375,828 193,040 11,526,517
Provision for taxation
(a) Current tax credit/(charge) - Refer note 3.7 of schedule 16 (788,117) - - - - - - - - - - (788,117)
(b) Deferred tax credit/(charge) - Refer note 3.7 of schedule 16 - - - - - - - (233) - - - (233)
Surplus/(deficit) after tax 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Appropriations
Transfer to Shareholders' account 394,734 32,836 4,124,399 - - 1,061,310 136,709 2,022,530 2,920,712 429,172 193,040 11,315,442
Transfer to other Reserves - - - - - - - - - - - -
Balance being funds for future appropriation 936,581 347,607 (1,797,137) - - - - (1,617) (9,365) (53,344) - (577,275)
Total 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Details of Surplus after tax
(a) Interim bonuses paid 330,901 3,763 - - - - - - - - - 334,664
(b) Allocation of bonus to policyholders' 3,221,705 291,759 - - - - - - - - - 3,513,464
(c) Surplus shown in the Revenue Account 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Total Surplus 4,883,921 675,965 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 14,586,295
Funds for future appropriation
Opening balance as at April 1, 2016 2,978,687 1,770,812 1,797,137 - - - - 4,868 14,285 53,344 - 6,619,133
Add: Current period appropriation 936,581 347,607 (1,797,137) - - - - (1,617) (9,365) (53,344) - (577,275)
Balance carried forward to Balance Sheet 3,915,268 2,118,419 - - - - - 3,251 4,920 - - 6,041,858
Significant accounting policies & notes 16
The schedules and accompanying notes referred to herein form an integral part of the Revenue Account.

As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Revenue Account as expenses.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.
As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

129
profit & loss account balance sheet
for the year ended March 31, 2018 as at March 31, 2018
Form A-PL Form A-BS
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000
Shareholders’ Account (Non-Technical Account) (` in ‘000) (` in ‘000)
Particulars Schedule March 31, March 31, Particulars Schedule March 31, March 31,
2018 2017 2018 2017
Amounts transferred from Policyholders' Sources of funds
account (Technical account) 10,892,136 11,315,442 Shareholders' funds :
Share capital 5 14,354,987 14,353,471
Income from investments
Share application money - -
(a) Interest, dividend & rent - Gross 4,193,354 3,740,683 Reserve and surplus 6 51,408,643 46,996,096
(b) Profit on sale/redemption of investments 3,346,949 2,881,074 Credit/[debit] fair value change account 3,080,906 2,730,821
Sub - total 68,844,536 64,080,388
(c) (Loss) on sale/redemption of investments (125,521) (114,046)
Borrowings 7 - -
(d) Accretion of discount/(amortisation of Policyholders' funds :
premium) (Net) (19,327) 139,232 Credit/[debit] fair value change account 20,550,637 17,866,609
Other income 48,428 285,299 Revaluation reserve - Investment property- 614,479 603,548
Refer note 3.25 of schedule 16
Total (A) 18,336,019 18,247,684 Policy liabilities (A)+(B)+(C) 1,284,945,569 1,130,470,597
Expenses other than those directly related to Non unit liabilities (mathematical reserves) (A) 309,933,921 251,695,317
the insurance business 3A 387,609 379,564 Provision for linked liabilities (fund reserves) (B) 923,123,553 839,364,705
(a) Provision for linked liabilities 822,372,860 729,695,155
Bad debts written-off - -
(b) Credit/[debit] fair value change account 100,750,693 109,669,550
Provisions (other than taxation) (Linked)
(a) F
 or diminution in value of investments Funds for discontinued policies (C) - Refer note 51,888,095 39,410,575
(Net)- Refer note 3.26 of schedule 16 - - 3.38 of schedule 16
(a) D iscontinued on account of non-payment 51,841,156 39,373,557
(b) Provision for doubtful debts - - of premium
Contribution to Policyholders' account (b) Other discontinuance 117,925 49,293
(Technical account) 752,784 18,019 (c) Credit/[debit] fair value change account (70,986) (12,275)
Total linked liabilities (B)+(C) 975,011,648 878,775,280
Total (B) 1,140,393 397,583
Sub - total 1,306,110,685 1,148,940,754
Profit before tax 17,195,626 17,850,101 Funds for Future Appropriations
Provision for taxation Linked- Refer note 3.3 of schedule 16 8,036 8,171
Non linked - Refer note 3.3 of schedule 16 8,773,567 6,033,687
(a) C
 urrent tax credit/(charge) - Refer note 3.7 Sub - total 8,781,603 6,041,858
of schedule 16 (997,367) (1,027,798) Total 1,383,736,824 1,219,063,000
(b) Deferred tax credit/(charge) - Refer note Application of funds
3.7 of schedule 16 - - Investments - -
Profit after tax 16,198,259 16,822,303 Shareholders’ 8 77,492,895 66,402,564
Policyholders’ 8A 332,888,519 270,673,678
Appropriations Asset held to cover linked liabilities 8B 975,019,684 878,783,451
(a) Balance at the beginning of the year 12,683,041 2,507,743 Loans 9 1,450,588 806,448
(b) Interim dividends paid during the year - Fixed assets - net block 10 4,220,622 2,137,759
Refer note 3.41 of schedule 16 4,880,653 5,521,572 Deferred tax asset - Refer note 3.7 of schedule 16 463 469
Current assets
(c) Final dividend - Refer note 3.41 of Cash and Bank balances 11 2,037,435 2,136,956
schedule 16 5,023,962 1,142 Advances and Other assets 12 25,102,587 26,483,897
(d) Dividend distribution tax - Refer note 3.41 Sub-Total (A) 27,140,022 28,620,853
of schedule 16 2,016,339 1,124,291 Current liabilities 13 34,254,125 28,157,262
Provisions 14 221,844 204,960
Profit carried to Balance Sheet 16,960,346 12,683,041
Sub-Total (B) 34,475,969 28,362,222
Earnings per equity share - Refer note 3.19 Net Current Assets (C) = (A-B) (7,335,947) 258,631
of schedule 16 Miscellaneous expenditure (to the extent not 15 - -
Basic earnings per equity share ` 11.28 11.73 written-off or adjusted)
Debit Balance in Profit & Loss Account - -
Diluted earnings per equity share ` 11.28 11.72 (Shareholders' account)
Nominal value per equity share ` 10.00 10.00 Total 1,383,736,824 1,219,063,000
Contingent liabilities - Refer note 3.1 of 2,031,184 2,072,659
Significant accounting policies & notes 16
schedule 16
Significant accounting policies & notes 16
The Schedules and accompanying notes referred to herein form an integral part of
the Profit and Loss Account. The Schedules and accompanying notes referred to herein form an integral part of
the Balance Sheet.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

130
receipts & payments account
for the year ended March 31, 2018

(` in ‘000)
Sr. Particulars April 1, 2017 to March 31, 2018 April 1, 2016 to March 31, 2017
No
A. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers:
Premium and other receipts 300,621,105 254,552,613
Interest received on tax refund 472,366 -
Cash paid towards operating activities:
Commission paid (13,411,464) (7,646,310)
Policy benefits paid (172,201,685) (149,235,790)
Other expenses4 (49,545,226) (47,890,796)
Service tax/Goods and Service tax paid (7,042,688) (5,172,072)
Reinsurance premium ceded (net of recovery amount) (180,822) (346,370)
Advances and deposits (85,102) 12,059
Taxes paid (net of refunds) (1,698,136) (244,165,123) (2,949,490) (213,228,769)
Net cash generated from operating activities (A) 56,928,348 41,323,844
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (698,378) (536,049)
Sale of fixed assets 22,466 (675,912) 22,674 (513,375)
Purchase of investments (1,883,039,073) (1,497,721,734)
Investment in Subsidiary - (20,000)
Loan (644,140) (363,730)
Sale of investments 1,816,932,167 1,413,465,084
Advance/deposit for investment property - 64,338
Interest & rent received (net of tax deducted at source) 42,097,832 36,517,047
Dividend received 8,444,427 7,259,761
Investments in money market instruments and in liquid mutual funds (Net) (36,804,639) 34,524,975
Expense related to investment (228,131) (201,816)
Net cash generated from/(used) investing activities (B) (53,917,469) (6,989,450)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital1 39,580 327,337
Final Dividend (5,019,892) (3,008,328)
Interim Dividend paid (4,880,653) (5,521,572)
Dividend Distribution tax paid (2,016,339) (1,736,625)
Net cash used in financing activities (C) (11,877,304) (9,939,188)
D. Effect of foreign exchange rates on cash and cash equivalents (net) (D) 30 (678)
E. Net increase in cash and cash equivalents (A+B+C+D) (8,866,395) 24,394,528
F. Cash and cash equivalents at beginning of the year 65,336,904 40,942,376
G. Cash and cash equivalents at end of the year 56,470,509 65,336,904
Note:
Cash and cash equivalents at the end of the year
- Cash (Including cheques in hand and stamps in hand) 1,345,557 1,408,060
- Bank Balances and Money at call and short notice2 945,574 1,137,083
[Including bank balance for linked business of
` 253,696 thousands (` 408,187 thousands at March 31, 2017]
- Other short term liquid investment3
[Forming part of investments in financials and unclaimed assets as disclosed 55,463,985 65,777,884
in Schedule 12 ]
- Banks having negative book balance
[Forming part of Other Liabilities under Schedule 13 in financials] (1,155,306) (2,958,301)
Stamps on Hand
[Part of Cash (including cheques, drafts and stamps) under Schedule 11, (129,301) (27,822)
however not a part of cash and cash equivalents]
56,470,509 65,336,904
1
Includes movement in share application money.
2
Includes balance in dividend account which is unclaimed amounting to ` 4.768 thousands (` 697 thousands at March 31, 2017).
3
Includes a fixed deposit amounting to ` Nil (` 575,679 thousands at March 31, 2017) given as a lien against guarantee to NSE and which is having a maturity of less than 3 months.
4
Includes CSR paid during the year amounting to ` 247,697 thousands (` 219,453 thousands for the year ended March 31, 2017) - Refer note 3.47 of Schedule 16.
The above Receipts and payments account has been prepared as prescribed by Insurance Regulatory and Development Authority (Preparation of financial statements
and auditor’s report of insurance companies) Regulations, 2002 under the “Direct method” in accordance with Accounting Standard 3 Cash Flow Statements.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary
131
 schedules
forming part of the financial statements Continued
SCHEDULE – 1
PREMIUM (Net of service tax / Goods & Service tax)
For the year ended March 31, 2018 (` in ‘000)
Particulars Par Life Par Pension Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Variable Variable Non Par Life Pension Health Group Life Group
Pension Pension
First year premiums 7,972,764 - 2,542,456 - - - 174,425 62,490,545 382,145 (429) - - 73,561,906
Renewal premiums 23,829,440 276,405 20,805,081 - - - 117,428 124,118,936 4,897,657 1,031,124 2,388,567 1,105,543 178,570,181
Single premiums - - 7,624,052 352,309 9,300 3,107,546 1,615 3,402,870 233,279 - 2,278,442 1,546,192 18,555,605
Total Premium 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
Premium Income from
business written:
In India 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
Outside India - - - - - - - - - - - - -
Total Premium 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Pension Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Variable Variable Non Par Life Pension Health Group
Pension
First year premiums 6,186,130 4 2,432,625 - - -
(19) 54,463,295 364,781 (532) - 63,446,284
Renewal premiums 19,440,389 329,819 20,845,844 - - 136,627- 94,351,150 5,969,601 1,192,813 2,640,759 144,907,002
Single premiums - - 4,704,149 891,208 2,058,089 137,913- 2,224,270 272,444 - 4,898,661 15,186,734
Total Premium 25,626,519 329,823 27,982,618 891,208 2,058,089 137,913
136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Premium Income from
business written:
In India 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Outside India - - - - - - - - - - - -
Total Premium 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Refer note 2.3.1 of schedule 16 for accounting policy on Premium recognition.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

SCHEDULE – 2
COMMISSION EXPENSES
For the year ended March 31, 2018 (` in ‘000)
Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Commission
Direct – First year premiums 1,751,822 - 691,912 - - - 32,086 7,763,126 5,868 (95) - - 10,244,719
– Renewal premiums 898,196 2,492 793,280 - - - 2,863 1,707,876 29,870 5,997 - - 3,440,574
– Single premiums - - 295,451 - - 11,825 5 39,441 721 - - - 347,443
Total 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Add: Commission on - - - - - - - - - - - - -
re-insurance accepted
Less: Commission on - - - - - - - - - - - - -
re-insurance ceded
Net Commission 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Break-up of the commission
by distribution network
Individual agents 971,591 2,261 569,990 - - 2,528 19,021 1,599,776 24,252 5,762 - - 3,195,181
Corporate agents 1,285,212 231 990,401 - - 9,293 15,082 7,905,293 9,175 (46) - - 10,214,641
Brokers 391,318 - 210,788 - - - 707 5,191 3,032 186 - - 611,222
Insurance Marketing Firm 1,897 - 609 - - 4 41 183 - - - - 2,734
Web Aggregators - - 8,855 - - - 103 - - - - - 8,958
Total Commission 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group
Pension
Commission
Direct – First year premiums 1,174,597 - 545,455 - - - (8) 2,875,099 5,861 (124) - 4,600,880
– Renewal premiums 735,707 1,663 800,389 - - - 3,407 1,316,590 38,236 7,238 - 2,903,230
– Single premiums - - 58,532 25 - 1,633 - 24,106 754 - - 85,050
Total 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Add: Commission on - - - - - - - - - - - -
re-insurance accepted
Less: Commission on - - - - - - - - - - - -
re-insurance ceded
Net Commission 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Break-up of the commission
by distribution network
Individual agents 726,303 1,158 478,050 - - 961 2,249 859,982 26,181 6,231 - 2,101,115
Corporate agents 889,392 492 760,007 - - 666 1,024 3,335,824 13,792 566 - 5,001,763
Brokers 293,745 13 166,103 25 - 6 126 19,950 4,878 317 - 485,163
Insurance Marketing Firm 863 - 151 - - - - 39 - - - 1,053
Web Aggregators 1 - 64 - - - - - - - - 65
Total Commission 1,910,304 1,663 1,404,375 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,159
Note: Refer note 2.4 of schedule 16 for accounting policy on Acquisition cost.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

132
schedules
forming part of the financial statements Continued
SCHEDULE – 3
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS

For the year ended March 31, 2018 (` in ‘000)

Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Employees’ remuneration and welfare benefits 1,466,206 7,152 1,225,335 3,091 94 29,371 66,729 6,528,150 215,930 30,904 47,798 32,271 9,653,031
Travel, conveyance and vehicle running expenses 71,730 229 60,245 363 9 2,674 3,361 462,278 13,905 1,857 5,784 3,603 626,038
Agents training, recruitment and incentives 107,647 (838) 90,497 - - 366 726 267,269 7,073 720 2 1 473,463
Rents, rates and taxes 91,508 1,735 533,648 90 2 2,697 15,553 561,844 12,851 1,786 1,373 888 1,223,975
Repairs 49,192 2,432 33,336 48 1 1,423 2,516 227,908 7,262 1,032 696 444 326,290
Printing and stationery 12,245 125 17,271 3 - 463 2,281 29,348 2,043 481 103 125 64,488
Communication expenses 160,660 1,932 226,269 37 - 5,942 22,173 445,000 32,710 7,594 535 334 903,186
Legal and professional charges 117,298 1,151 133,558 456 59 3,925 9,576 365,299 19,867 4,044 4,153 1,882 661,268
Medical fees 3,175 - 200,705 7 - - 21 7,347 16 - 165 94 211,530
Auditors' fees, expenses etc : - -
(a) as auditor 3,224 46 4,067 - - 125 457 7,435 733 176 - - 16,263
(b) as advisor or in any other capacity, in respect of - -
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management Services; and - - - - - - - - - - - - -
(c) in any other capacity (for Certification) - - - - - - - - - - - - -
Advertisement and publicity 484,248 7 1,429,250 - 16 3,886 1,973 589,912 8,504 722 2,467 1,901 2,522,886
Interest and bank charges 25,188 282 25,652 244 9 3,019 282 132,984 5,478 275 4,563 1,863 199,839
Others - -
Administration support expenses - - - - - - - - - - - - -
Business conferences and meetings 240,866 862 124,698 37 1 892 4,457 1,109,343 14,923 1,749 443 213 1,498,484
Information technology cost 133,035 729 165,583 37 - 4,508 21,771 458,678 13,412 2,785 534 230 801,302
Office running expenses 31,661 137 29,604 36 1 1,134 2,465 177,521 6,142 890 529 340 250,460
Data entry related expenses 39,730 726 49,140 135 4 1,694 4,015 89,759 11,401 2,770 2,538 1,760 203,672
Miscellaneous expenses 17,101 (198) 25,934 17 1 562 959 92,241 (704) 2,269 48 (479) 137,751
Depreciation 50,378 180 30,448 65 1 2,084 2,052 343,759 5,287 739 1,081 686 436,760
Service tax/Goods & Service tax expenses 7,311 95 59,231 666 410 97 852 14,031 492 4,065 (2) 1,378 88,626
Total 3,112,403 16,784 4,464,471 5,332 608 64,862 162,219 11,910,106 377,325 64,858 72,810 47,534 20,299,312

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group
Pension
Employees’ remuneration and welfare benefits 1,420,384 9,580 1,138,047 7,445 951 15,221 5,313 5,111,449 256,786 29,253 85,794 8,080,223
Travel, conveyance and vehicle running expenses 49,205 212 43,077 1,232 131 888 264 315,857 13,426 1,495 9,884 435,671
Agents training, recruitment and incentives 319,460 - 170,297 7 - 382 120 784,617 16,655 1,434 1 1,292,973
Rents, rates and taxes 94,329 1,790 391,180 263 38 1,335 363 514,496 17,448 1,973 4,927 1,028,142
Repairs 52,481 3,659 32,724 145 15 675 219 215,279 10,096 1,177 1,479 317,949
Printing and stationery 8,334 113 11,537 - 1 221 112 21,909 2,132 414 95 44,868
Communication expenses 137,562 2,228 176,317 102 13 3,293 2,218 405,695 44,368 8,378 1,280 781,454
Legal and professional charges 80,131 778 93,603 179 18 1,921 652 233,083 16,957 2,775 6,454 436,551
Medical fees 5,089 - 138,739 21 3 - - 11,320 15 (28) 184 155,343
Auditors' fees, expenses etc :
(a) as auditor 3,154 51 3,979 - - 83 50 7,632 946 185 - 16,080
(b) as advisor or in any other capacity, in respect of -
(i) Taxation matters - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - -
(iii) Management Services; and - - - - - - - - - - - -
(c) in any other capacity (for Certification) - - - - - - - - - - - -
Advertisement and publicity 412,741 6 650,617 4,898 523 972 352 802,462 47,416 4,135 30,807 1,954,929
Interest and bank charges 19,197 292 22,896 609 88 1,619 107 92,377 7,499 254 6,680 151,618
Others
Administration support expenses 590,681 - 694,478 - - 8,089 - 4,503,427 36,000 - (655) 5,832,020
Business conferences and meetings 288,878 - 161,008 186 26 354 106 735,075 14,907 1,273 2,603 1,204,416
Information technology cost 121,667 1,139 189,372 217 28 3,494 1,132 308,551 21,959 4,162 1,949 653,670
Office running expenses 28,434 156 27,891 105 13 540 183 162,624 8,161 968 1,051 230,126
Data entry related expenses 32,977 692 37,136 369 41 815 687 77,322 12,751 2,527 4,210 169,527
Miscellaneous expenses 14,340 60 32,727 34 6 250 277 94,852 6,158 2,158 2,140 153,002
Depreciation 72,492 306 47,235 258 29 1,238 283 443,552 8,573 1,057 3,141 578,164
Service tax expenses 9,381 47 19,811 162 - (204) (56) 8,689 (987) 10,835 7,557 55,235
Total 3,760,917 21,109 4,082,671 16,232 1,924 41,186 12,382 14,850,268 541,266 74,425 169,581 23,571,961
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

SCHEDULE – 3A
EXPENSES OTHER THAN THOSE DIRECTLY RELATED TO THE INSURANCE BUSINESS
For the year ended March 31, 2018 (` in ‘000)
Particulars March 31, 2018 March 31, 2017
Employees’ remuneration and welfare benefits 105,100 109,372
Travel, conveyance and vehicle running expenses 282 55
Rent, rates and taxes 16,657 21,952
Printing and stationery 38 -
Communication expenses 278 1,834
Legal and professional charges 5,798 7,698
Interest and bank charges 1,655 965
CSR expenses 230,523 218,842
Others 27,211 18,751
Depreciation 67 95
Total 387,609 379,564

133
 schedules
forming part of the financial statements Continued
SCHEDULE – 4
BENEFITS PAID [NET]

For the year ended March 31, 2018 (` in ‘000)

Particulars Par Par Non Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Life Pension Par Variable Variable Non Par Life Pension Health Group Life Group
Pension Pension
1 Insurance claims
(a) Claims by death 690,246 11,534 3,879,208 739 - 68,525 - 3,266,635 621,218 14,020 53,646 35,374 8,641,145
(b) Claims by maturity 2,098,637 577,046 121,643 - - - - 23,508,518 7,278,530 - - - 33,584,374
(c) Annuities/Pension payment - - - - - 1,522,440 - - - - - - 1,522,440
(d) Other benefits
- Surrender/Withdrawal 1,374,708 730,852 604,505 384,825 16,900 - - 78,245,965 38,619,004 - 4,944,763 2,684,951 127,606,473
- Survival 2,099,481 - - - - - - - - - - - 2,099,481
- Rider 23,285 1,633 66,449 - - 38 - 28,925 1,490 37 - - 121,857
- Health - - 110,619 - - - 52,661 - - 686,843 - - 850,123
- Interest on unclaimed amounts - - - - - - - 482,269 - - - - 482,269
Sub Total (A) 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162
2 (Amount ceded in reinsurance)
(a) Claims by death (31,697) - (1,893,248) - - - - (363,155) - - - - (2,288,100)
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - (29,225) - - - (27,987) - - (304,233) - - (361,445)
Sub Total (B) (31,697) - (1,922,473) - - - (27,987) (363,155) - (304,233) - - (2,649,545)
3 Amount accepted in reinsurance
(a) Claims by death - - - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - - - - -
- Surrender - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - - -
Total (A) + (B) + (C) 6,254,660 1,321,065 2,859,951 385,564 16,900 1,591,003 24,674 105,169,157 46,520,242 396,667 4,998,409 2,720,325 172,258,617
Benefits paid to claimants:
In India 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162
Outside India - - - - - - - - - - - - -
Total 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Par Non Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Life Pension Par Variable Variable Non Par Life Pension Health Group Life
Pension
1 Insurance claims
(a) Claims by death 510,951 20,147 2,329,853 - - 80,794 - 2,281,302 630,022 9,724 49,756 5,912,549
(b) Claims by maturity 1,303,730 253,554 233,272 - - - - 18,630,325 2,409,108 - - 22,829,989
(c) Annuities/Pension payment - - - - - 1,389,762 - - - - - 1,389,762
(d) Other benefits
- Surrender/Withdrawal 1,105,200 594,979 389,773 10,158 8,157 97 - 65,663,047 39,686,369 - 10,482,966 117,940,746
- Survival 2,008,886 - 16 - - - - - - - - 2,008,902
- Rider 25,170 1,137 48,025 - - 24 - 31,846 1,903 14 - 108,119
- Health - - 37,400 - - - 53,202 - - 680,015 - 770,617
- Interest on unclaimed amounts - - - - - - - 390,569 - - - 390,569
Sub Total (A) 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
2 (Amount ceded in reinsurance)
(a) Claims by death (11,422) - (1,044,508) - - - - (312,465) - - - (1,368,395)
(b) Claims by maturity - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - -
- Survival - - - - - - - - - - - -
- Rider - - - - - - - - - - - -
- Health - - (1,063) - - - (25,245) - - (312,464) - (338,772)
Sub Total (B) (11,422) - (1,045,571) - - - (25,245) (312,465) - (312,464) - (1,707,167)
3 Amount accepted in reinsurance
(a) Claims by death - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - -
- Surrender - - - - - - - - - - - -
- Survival - - - - - - - - - - - -
- Rider - - - - - - - - - - - -
- Health - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - -
Total (A) + (B) + (C) 4,942,515 869,817 1,992,768 10,158 8,157 1,470,677 27,957 86,684,624 42,727,402 377,289 10,532,722 149,644,086
Benefits paid to claimants:
In India 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
Outside India - - - - - - - - - - - -
Total 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
Note: Refer note 2.8 of schedule 16 for accounting policy on Benefits paid.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

134
schedules
forming part of the financial statements Continued
SCHEDULE – 5 (` in ‘000)
SHARE CAPITAL Particulars March 31, 2018 March 31, 2017
(` in ‘000) (Market value at March 31, 2018: `794,500 thousands)
Particulars March 31, March 31, (Market value at March 31, 2017: `627,000 thousands)
2018 2017 Property 3,866,000 4,472,454
Authorised capital (Historical value at March 31, 2018: `3,651,011 thousands)
1,500,000,000 Equity shares of ` 10/- each 15,000,000 15,000,000 (Historical value at March 31, 2017: `4,354,643 thousands)
Issued, subscribed and called-up capital Investments in infrastructure/housing sector
1,435,498,710 Equity shares of ` 10/- each fully paid up Other approved Investments
(March 31, 2017: 1,435,347,110 Equity shares) 14,354,987 14,353,471 Debentures/Bonds 13,353,834 13,126,939
Total 14,354,987 14,353,471 (Market value at March 31, 2018: `13,729,027 thousands)
Out of the total equity share capital, 787,816,604 equity shares (March 31, 2017 - 787,816,604
(Market value at March 31, 2017: `13,675,982 thousands)
Equity shares 1,485,817 1,696,513
equity shares) of ` 10 each are held by the holding company, ICICI Bank Limited.
(Historical value at March 31, 2018: `1,289,606 thousands)
SCHEDULE – 5A (Historical value at March 31, 2017: `1,353,475 thousands)
PATTERN OF SHAREHOLDING Other investments
[As certified by the Management] Equity shares 262,367 214,761
Shareholder March 31, 2018 March 31, 2017 (Historical value at March 31, 2018: `354,086 thousands)
Number of % of Number of % of (Historical value at March 31, 2017: `275,403 thousands)
shares holding shares holding Other investments
Promoters Debentures/Bonds 461,969 833,095
Indian (ICICI Bank Limited) 787,816,604 54.88 787,816,604 54.89 (Market value at March 31, 2018: `487,216 thousands)
Foreign (Market value at March 31, 2017: `890,439 thousands)
(Prudential Corporation Equity shares 7,228,448 3,687,372
Holdings Limited) 370,784,884 25.83 370,784,884 25.83 (Historical value at March 31, 2018: `5,110,883 thousands)
Others 276,897,222 19.29 276,745,622 19.28 (Historical value at March 31, 2017: `3,469,818 thousands)
Total 1,435,498,710 100.00 1,435,347,110 100.00 Preference shares 350,000 -
(Market value at March 31, 2018: `350,000 thousands)
SCHEDULE 6 (Market value at March 31, 2017: `Nil)
RESERVES AND SURPLUS SHORT TERM INVESTMENT
(` in ‘000) Government securities 2,873 -
Particulars March 31, March 31, (Market value at March 31, 2018: `2,904 thousands)
2018 2017 (Market value at March 31, 2017: `Nil)
Capital reserves - - Other approved securities - -
Capital redemption reserve - - (Market value at March 31, 2018: `Nil)
Share premium 34,233,308 34,195,244 (Market value at March 31, 2017: `Nil)
Revaluation reserve 214,989 117,811 Other approved investments
General reserve Debentures/Bonds 550,378 299,824
Opening balance - - (Market value at March 31, 2018: `553,304 thousands)
Less: Transfer to Profit and Loss - - (Market value at March 31, 2017: `301,996 thousands)
Closing balance - - Fixed deposits2 1,681,179 1,931,613
Less: Debit balance in Profit and Loss Account - - (Market value at March 31, 2018: `1,681,179 thousands)
Less: Amount utilized for buy-back - - (Market value at March 31, 2017: `1,931,613 thousands)
Catastrophe reserve - - Mutual fund 2,650,677 4,460,521
Other reserves - - (Historical value at March 31, 2018: `2,647,757 thousands)
Balance of profit in Profit and Loss Account 16,960,346 12,683,041 (Historical value at March 31, 2017: `4,460,521 thousands)
Total 51,408,643 46,996,096 Collateralized borrowing and lending obligation 2,018,101 -
(Market value at March 31, 2018: `2,018,101 thousands)
SCHEDULE 7 (Market value at March 31, 2017: `Nil)
BORROWINGS Investments in infrastructure/housing sector
(` in ‘000) Other approved Investments
Particulars March 31, March 31, Debentures/Bonds 2,954,239 2,435,028
2018 2017 (Market value at March 31, 2018: `2,953,606 thousands)
Debentures/Bonds - - (Market value at March 31, 2017: `2,460,641 thousands)
Banks - - Commercial papers 486,028 -
Financial Institutions - - (Market value at March 31, 2018: `486,028 thousands)
Others - - (Market value at March 31, 2017: `Nil)
Total - - Total 77,492,895 66,402,564
In India 77,492,895 66,402,564
SCHEDULE - 8
Total 77,492,895 66,402,564
INVESTMENTS- SHAREHOLDERS
(` in ‘000) 1. Government securities of `1,638,370 thousands with Market value of `1,643,650 thousands
at March 31, 2018 [At March 31, 2017: `1,450,956 thousands with Market value of `1,521,000
Particulars March 31, March 31, thousand] and `77,501 thousands with Market value of `79,200 thousands at March 31, 2018
2018 2017 [At March 31, 2017: `77,354 thousands with Market value of `80,880 thousands] has been
LONG TERM INVESTMENT deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund
Government securities1 21,263,780 13,561,317 (SGF) deposit and CCIL default fund respectively - Refer 3.27 of Schedule 16.
2. Includes Fixed deposit of `1,000,000 thousands at March 31, 2018 [At March 31, 2017:
(Market value at March 31, 2018: `21,321,296 thousands) `1,000,000 thousands] and `100,000 thousands at March 31, 2018 [At March 31,2017:
(Market value at March 31, 2017: `14,234,582 thousands) `100,000 thousands] deposited with National Securities Clearing Corporation Limited and
Other approved securities 6,601,212 8,340,862 Indian Clearing Corporation Limited respectively towards margin requirement for equity trade
(Market value at March 31, 2018: `6,608,289 thousands) settlement - Refer 3.27 of Schedule 16.
(Market value at March 31, 2017: `8,463,016 thousands) 3. Aggregate amount of Company’s investments and the market value thereof:
Other approved investments (` in ‘000)
Equity shares 6,828,688 6,701,072 Particulars March 31, 2018 March 31, 2017
(Historical value at March 31, 2018: `5,972,752 thousands) Aggregate amount of Company’s investments other than
(Historical value at March 31, 2017: `4,470,202 thousands) equity securities, mutual fund, investments in subsidiary, 54,880,901 44,879,867
Preference shares 253,402 317,562 investment in property and derivative instruments
(Market value at March 31, 2018: `279,733 thousands) Market value of above Investments 55,472,697 46,487,659
(Market value at March 31, 2017: `347,825 thousands) Aggregate amount of Company’s investments in Mutual
Debentures/Bonds 3,905,174 3,336,602 Fund, Equity and investments in subsidiary and investment in
(Market value at March 31, 2018: `4,003,283 thousands) property (at Historical cost) 19,316,095 18,674,061
(Market value at March 31, 2017: `3,484,534 thousands) 4. Investments in subsidiary at cost is `290,000 thousands at March 31, 2018 [At March 31,
Investments in subsidiary 290,000 290,000 2017 : `290,000 thousands]. For Investments in holding company and other related entities -
Refer note 3.10 of schedule 16.
CCIL deposit 204,229 70,029
5. Investments made out of Catastrophe reserve is `Nil.
(Market value at March 31, 2018: `204,229 thousands)
6. Debt Securities are held to maturity and reduction in market values represent market conditions
(Market value at March 31, 2017: `70,029 thousands)
and not a permanent diminution in value of investments, if any.
Fixed deposits 794,500 627,000 Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

135
 schedules
forming part of the financial statements Continued
SCHEDULE - 8A
INVESTMENTS - POLICYHOLDERS (` in ‘000)
Particulars March 31, 2018
Par Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Life Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
LONG TERM INVESTMENT
Government securities1 67,766,380 6,036,755 82,642,284 - - 19,891,211 142,875 4,143,472 242,025 146,678 - - 181,011,680
(Market value: ` 181,138,895 thousands)
Other approved securities 12,001,076 752,011 4,487,958 42,682 - 222,794 - 1,487,068 51,895 104,221 104,651 - 19,254,356
(Market value: ` 18,932,065 thousands)
Other approved investments
Equity shares 19,046,258 1,245,070 26,571,555 - - - - - - - - - 46,862,883
(Historical value: ` 28,326,109 thousands)
Preference shares 79,568 - 2,487 - - - - - - - - - 82,055
(Market value: ` 93,124 thousands)
Debentures/Bonds 2,386,947 1,154,893 5,540,381 377,047 105,049 635,369 47,575 194,632 78,537 - 50,051 - 10,570,481
(Market value: ` 10,835,625 thousands)
Property 400,000 400,000 - - - - - - - - - - 800,000
(Historical value: ` 185,521 thousands)
CCIL deposit - - - - - - - 51 18 - 2 - 71
(Market value: ` 71 thousands)
Fixed deposits 626,400 144,500 1,555,600 - - 356,000 - 173,000 49,000 - - - 2,904,500
(Market value: ` 2,904,500 thousands)
Investments in infrastructure/housing
sector
Other approved investments
Equity shares 2,234,772 145,707 3,384,123 - - - - - - - - - 5,764,602
(Historical value: ` 3,666,799 thousands)
Debentures/Bonds 14,664,601 1,099,901 17,083,498 485,359 20,308 1,712,493 99,987 1,470,076 175,867 159,469 110,183 - 37,081,742
(Market value: ` 37,342,726 thousands)
Other investments
Equity shares 90,547 - 242,764 - - - - - - - - - 333,311
(Historical value: ` 411,253 thousands)
Debentures/Bonds 209,967 - - - - - - - - - - - 209,967
(Market value: ` 211,945 thousands)
Other investments
Equity shares 1,371,544 - 1,847,153 - - - - - - - - - 3,218,697
(Historical value: ` 3,240,912 thousands)
Debentures/Bonds 251,939 - 343,922 - - - - - - - - - 595,861
(Market value: ` 594,355 thousands)
SHORT TERM INVESTMENT
Government securities - - - - - - - - - - - - -
(Market value: ` Nil)
Other approved securities - - - - - - - - - - - - -
(Market value: ` Nil)
Other approved investments
Debentures/Bonds 385,599 65,237 305,011 - - - - - - - - - 755,847
(Market value: ` 757,640 thousands)
Commercial papers - - - - - - - 969,034 - - - - 969,034
(Market value: ` 969,034 thousands)
Mutual fund 4,035,420 - 9,096,558 - - - 5,308 748,316 52,686 50,593 104,528 302,076 14,395,485
(Historical value: ` 14,379,272 thousands)
Collateralized borrowing and lending 93,413 843,410 263,336 25,372 6,568 1,376,851 - 34,261 - - - - 2,643,211
obligation
(Market value: ` 2,643,210 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 1,266,140 45,423 1,045,641 - - 136,501 - 374,289 - - - - 2,867,994
(Market value: ` 2,877,354 thousands)
Commercial papers - - 737,714 - - - - 476,587 385,676 - - - 1,599,977
(Market value: ` 1,599,977 thousands)
Certificate of deposits - - 328,704 - - - - 469,577 - - - - 798,281
(Market value: ` 798,281 thousands)
Other investments
Debentures/Bonds 50,125 - - - - - - - - - - - 50,125
(Market value: ` 49,867 thousands)
Venture fund 118,359 - - - - - - - - - - - 118,359
(Market value: ` 141,190 thousands)
Total 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
In India 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
Total 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
1. Government securities of ` 2,155,466 thousands with market value of ` 2,103,272 thousands (at March 31, 2017 ` 508,511 thousands with market value of ` 546,500 thousands ) has
been deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit for trades in Securities Segment. Government securities of ` 2,07,055
thousands with market value of ` 212,789 thousands (at March 31, 2017 ` 207,120 thousands with market value of ` 218,000 thousands) has been deposited with CCIL for trades in the
Collateralized borrowing and lending obligation segment - Refer 3.18 of Schedule 16.
2. Aggregate amount of Company’s investments and the market value thereof:
(` in ‘000)
Particulars March 31, 2018 March 31, 2017
Aggregate amount of Company’s investments other than equity securities, mutual fund, investments in subsidiary, investment in property and derivative instruments 261,513,541 212,898,335
Market value of above Investments 261,889,860 221,227,559
Aggregate amount of Company’s investments in Mutual Fund, Equity and investments in subsidiary and investment in property (at Historical cost) 50,209,866 39,305,188
3. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
4. Investments made out of Catastrophe reserve is ` Nil.
5. Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.
6. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these securities -
Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

136
schedules
forming part of the financial statements Continued
SCHEDULE - 8A (` in ‘000)
INVESTMENTS - POLICYHOLDERS
Particulars March 31, 2017
Par Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Life Pension Variable Variable Non Par Life Pension Health Group
Pension
LONG TERM INVESTMENT
Government securities1 49,825,645 5,772,630 67,106,859 - - 19,780,819 347,010 4,128,123 355,155 139,530 - 147,455,771
(Market value: ` 153,787,265 thousands)
Other approved securities 10,031,979 742,701 4,476,388 - - 213,199 - 1,765,933 54,119 104,849 105,320 17,494,488
(Market value: ` 17,794,433 thousands)
Other approved investments
Equity shares 14,902,724 1,404,461 20,682,269 - - - - - - - - 36,989,454
(Historical value: ` 21,518,925 thousands)
Preference shares 98,190 - 2,513 - - - - - - - - 100,703
(Market value: ` 115,792 thousands)
Debentures/Bonds 1,612,777 729,402 1,812,719 250,327 100,000 285,589 47,235 194,546 78,341 - 97,329 5,208,265
(Market value: ` 5,470,810 thousands)
Property 1,481,744 384,760 - - - - - - - - - 1,866,504
(Historical value: ` 1,262,956 thousands)
CCIL deposit - - - - - - - 51 18 - 2 71
(Market value: ` 71 thousands)
Fixed deposits 626,400 144,500 874,600 - - 356,000 - 173,000 49,000 - - 2,223,500
(Market value: ` 2,223,500 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 1,935,824 126,831 3,073,330 - - - - - - - - 5,135,985
(Historical value: ` 3,364,763 thousands)
Debentures/Bonds 11,855,605 1,531,294 14,164,073 535,084 20,334 1,498,596 100,000 1,948,374 226,151 110,052 312,516 32,302,079
(Market value: ` 33,587,926 thousands)
Other investments
Equity shares 77,235 - 212,723 - - - - - - - - 289,958
(Historical value: ` 324,262 thousands)
Debentures/Bonds 210,000 - - - - - - - - - - 210,000
(Market value: ` 216,049 thousands)
Other investments
Equity shares 1,215,955 - 1,383,257 - - - - - - - - 2,599,212
(Historical value: ` 1,940,049 thousands)
Debentures/Bonds 313,145 - 1,336,775 - - - - - - - - 1,649,920
(Market value: ` 1,714,219 thousands)
SHORT TERM INVESTMENT
Government securities 2,691 6,405 79,594 - - - - - - - - 88,690
(Market value: ` 89,067 thousands)
Other approved securities - - 249,885 - - - - - - - - 249,885
(Market value: ` 253,807 thousands)
Other approved investments
Debentures/Bonds 540,114 125,000 1,250,773 - - 219,000 - 70,000 30,000 - - 2,234,887
(Market value: ` 2,262,018 thousands)
Commercial papers - 245,776 - - - - - - - - - 245,776
(Market value: ` 245,776 thousands)
Mutual fund 3,518,185 - 5,531,775 - - - 23,541 1,065,728 571,890 27,802 155,311 10,894,232
(Historical value: ` 10,894,232 thousands)
Collateralized borrowing and lending obligation 54,506 190,331 - 22,354 10,156 256,395 - - - - - 533,742
(Market value: ` 533,742 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 575,657 350,038 1,716,504 - - 50,035 - 25,000 13,857 - - 2,731,091
(Market value: ` 2,749,840 thousands)
Other investments
Venture fund 169,465 - - - - - - - - - - 169,465
(Market value: ` 183,243 thousands)
Total 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
In India 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
Total 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
1. Government securities of ` 508,511 thousands with market value of ` 546,500 thousands (at March 31, 2016: ` 498,374 thousands with market value of ` 519,250 thousands) has been
deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit. Government securities of ` 207,120 thousands with market value of ` 218,000
thousands (at March 31, 2016:` 207,848 thousands with market value of ` 209,850 thousands) has been deposited with CCIL for trades in the Collateralized borrowing and lending
obligation segment - Refer 3.18 of Schedule 16.
2. Aggregate amount of Company’s investments and the market value thereof:
(` in ‘000)
Particulars March 31, 2017
Aggregate amount of Company’s investments other than equity securities, mutual fund, investments in subsidiary, investment in property and derivative instruments 212,898,335
Market value of above Investments 221,227,559
Aggregate amount of Company’s investments in Mutual Fund, Equity and investments in subsidiary and investment in property (at Historical cost) 39,305,188
3. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
4. Investments made out of Catastrophe reserve is ` Nil.
5. Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

137
 schedules
forming part of the financial statements Continued
SCHEDULE — 8B (` in ‘000)
ASSETS HELD TO COVER LINKED LIABILITIES
Particulars March 31, 2018
Linked Life Linked Pension Linked Health Linked Group Linked Group Total
Funds Funds Funds Life Funds Pension Funds
LONG TERM INVESTMENTS
Government securities 73,927,692 10,444,619 623,544 7,692,184 4,878,884 97,566,923
(Historical value: ` 96,941,925 thousands)
Other approved securities 14,037,748 1,576,806 122,699 986,243 616,515 17,340,011
(Historical value: ` 17,440,299 thousands)
Other approved investments
Equity shares 367,993,453 68,846,173 5,184,008 4,165,133 3,649,339 449,838,106
(Historical value: ` 358,453,332 thousands)
Preference shares 268,232 143,051 6,147 272,429 13,443 703,302
(Historical value: ` 565,345 thousands)
Debentures/Bonds 23,937,117 8,833,037 604,253 6,865,824 4,692,786 44,933,017
(Historical value: ` 44,938,468 thousands)
Fixed deposits 557,495 106,095 4,900 22,310 800 691,600
(Historical value: ` 691,600 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 69,624,526 12,936,769 978,434 778,304 703,925 85,021,958
(Historical value: ` 69,231,134 thousands)
Debentures/Bonds 48,285,337 9,812,503 604,554 9,451,888 6,564,160 74,718,442
(Historical value: ` 74,281,673 thousands)
Other investments
Equity shares 9,584,675 1,343,567 76,132 141,219 125,761 11,271,354
(Historical value: ` 15,554,247 thousands)
Debentures/Bonds - - - 30,579 10,193 40,772
(Historical value: ` 38,661 thousands)
Other investments
Equity shares 24,357,637 3,970,364 271,201 363,151 311,757 29,274,110
(Historical value: ` 33,397,090 thousands)
Debentures/Bonds 4,269 5,337 - 289,255 211,338 510,199
(Historical value: ` 503,363 thousands)
Mutual fund 3,816,224 405 137 - - 3,816,766
(Historical value: ` 2,945,661 thousands)
SHORT TERM INVESTMENTS
Government securities 16,898,904 346,277 3,473 181,449 1,035,629 18,465,732
(Historical value: ` 18,406,936 thousands)
Other approved securities 8,242,602 41,874 - - - 8,284,476
(Historical value: ` 8,337,161 thousands)
Other approved investments
Debentures/Bonds 6,029,878 1,007,463 50,401 753,543 819,891 8,661,176
(Historical value: ` 8,673,361 thousands)
Certificate of deposits 3,465,419 103,476 4,982 44,643 426,536 4,045,056
(Historical value: ` 4,004,701 thousands)
Commercial papers 19,087,276 1,031,870 12,157 330,168 1,428,231 21,889,702
(Historical value: ` 21,517,556 thousands)
Fixed deposits 113,354 5,003 28,800 89,600 13,243 250,000
(Historical value: ` 250,000 thousands)
Collateralized borrowing and lending obligation 6,553,443 2,005,023 12,975 234,633 870,926 9,677,000
(Historical value: ` 9,669,885 thousands)
Mutual fund 17,176,754 2,469,308 400,536 438,614 1,553,508 22,038,720
(Historical value: ` 22,012,371 thousands)
Preference shares 11 - - - - 11
(Historical value: ` 11 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 19,295,217 3,483,558 82,427 2,597,710 2,832,584 28,291,496
(Historical value: ` 28,315,024 thousands)
Certificate of deposits 8,312,723 706,523 6,575 161,841 698,745 9,886,407
(Historical value: ` 9,809,505 thousands)
Commercial papers 15,715,291 1,353,109 42,584 511,318 563,989 18,186,291
(Historical value: ` 17,984,283 thousands)
Other investments
Venture Fund 6,243 - - - - 6,243
(Historical value: ` 8,248 thousands)
Net current asset 6,056,014 349,538 59,530 2,236,213 909,519 9,610,814
Total 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684
In India 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684
Total 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684

1. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
2. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these
securities - Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

138
schedules
forming part of the financial statements Continued
SCHEDULE - 8B (` in ‘000)
ASSETS HELD TO COVER LINKED LIABILITIES
Particulars March 31, 2017
Linked Life Linked Pension Linked Health Linked Group Total
Funds Funds Funds Funds
LONG TERM INVESTMENTS
Government securities 89,891,501 6,370,506 365,816 8,015,583 104,643,406
(Historical value: ` 102,197,174 thousands)
Other approved securities 23,066,125 3,600,838 198,814 4,372,378 31,238,155
(Historical value: ` 31,002,970 thousands)
Other approved investments
Equity shares 284,958,797 86,553,654 4,808,504 6,572,088 382,893,043
(Historical value: ` 289,799,327 thousands)
Preference shares 383,198 195,707 9,987 355,618 944,510
(Historical value: ` 764,890 thousands)
Debentures/Bonds 13,616,044 5,962,403 279,219 9,404,456 29,262,122
(Historical value: ` 28,745,748 thousands)
Fixed deposits 720,779 123,794 44,700 66,827 956,100
(Historical value: ` 956,100 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 64,828,955 17,224,017 675,878 1,790,323 84,519,173
(Historical value: ` 72,367,735 thousands)
Debentures/Bonds 38,719,839 13,243,046 852,800 15,909,974 68,725,659
(Historical value: ` 67,952,120 thousands)
Other investments
Equity shares 7,781,096 1,333,650 58,548 259,036 9,432,330
(Historical value: ` 13,030,998 thousands)
Debentures/Bonds - - - 41,046 41,046
(Historical value: ` 37,653 thousands)
Other investments
Equity shares 20,665,058 6,230,938 263,599 651,585 27,811,180
(Historical value: ` 24,913,186 thousands)
Debentures/Bonds 452,873 536,010 11,617 863,312 1,863,812
(Historical value: ` 1,772,589 thousands)
Mutual fund 5,260,416 751,379 - 68,555 6,080,350
(Historical value: ` 5,351,333 thousands)
SHORT TERM INVESTMENTS
Government securities 22,772,322 2,673,117 19,765 2,795,653 28,260,857
(Historical value: ` 28,118,974 thousands)
Other approved securities 1,907,940 - - - 1,907,940
(Historical value: ` 1,915,654 thousands)
Other approved investments
Debentures/Bonds 1,197,775 392,571 11,461 613,437 2,215,244
(Historical value: ` 2,218,043 thousands)
Commercial papers 6,056,189 909,302 5,382 898,151 7,869,024
(Historical value: ` 7,651,896 thousands)
Fixed deposits 3,889,600 936,300 103,500 1,565,625 6,495,025
(Historical value: ` 6,495,025 thousands)
Collateralized borrowing and lending obligation 5,709,467 1,250,291 6,299 740,373 7,706,430
(Historical value: ` 7,705,185 thousands)
Mutual fund 24,657,966 3,996,356 491,024 3,242,901 32,388,247
(Historical value: ` 32,388,247 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 9,227,837 2,588,229 82,609 3,692,671 15,591,346
(Historical value: ` 15,422,105 thousands)
Certificate of deposits 8,525,214 923,034 34,688 2,250,693 11,733,629
(Historical value: ` 11,669,600 thousands)
Commercial papers 4,084,751 151,589 - 65,555 4,301,895
(Historical value: ` 4,088,886 thousands)
Other investments
Venture Fund 6,559 - - - 6,559
(Historical value: ` 10,030 thousands)
Net current asset 6,118,294 2,369,042 126,661 3,282,372 11,896,369
Total 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
In India 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
Total 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
1. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
2. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these
securities - Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

139
 schedules
forming part of the financial statements Continued
SCHEDULE - 9
LOANS
(` in ‘000) (` in ‘000)
Particulars March 31, 2018 March 31, 2017 Particulars March 31, 2018 March 31, 2017
1. Security-wise classifications 3. Performance-Wise Classification
Secured (a) Loans classified as standard
(a) On mortgage of property (aa) In India 1,450,588 806,448
(aa) In India - -
(bb) Outside India - -
(bb) Outside India - -
(b) On Shares, Bonds, Govt Securities, etc. - - (b) Non-standard loans less provisions
(c) Loans against policies 1,450,588 806,448 (aa) In India - -
(d) Others - - (bb) Outside India - -
Unsecured - - Total 1,450,588 806,448
Total 1,450,588 806,448
2. Borrower wise classification 4. Maturity-wise classification
(a) Central and State Governments - - (a) Short-term 36,072 21,470
(b) Banks and Financial Institutions - - (b) Long-term 1,414,516 784,978
(c) Subsidiaries - - Total 1,450,588 806,448
(d) Companies - -
Refer Note 2.12 of Schedule 16 for accounting policy related to Loans.
(e) Policyholders - Loans against policies 1,450,588 806,448

(f) Others - -
Total 1,450,588 806,448

SCHEDULE - 10
FIXED ASSETS
(` in ‘000)
Gross Block Depreciation Net Block
At At At At At At
For the
Particulars April 1, Additions Deductions March 31, April 1, Deductions March 31, March 31, March 31,
year
2017 2018 2017 2018 2018 2017
Intangible assets
Goodwill - - - - - - - - - -
Software1 1,164,066 71,416 2,451 1,233,031 943,496 103,999 851 1,046,644 186,387 220,570
Tangible assets
Freehold land 903,280 - - 903,280 - - - - 903,280 903,280
Improvements to leasehold property 1,386,439 45,390 57,870 1,373,959 1,076,353 79,707 57,869 1,098,191 275,768 310,086
Office buildings on freehold land2 89,000 1,835,731 - 1,924,731 14,570 9,675 - 24,245 1,900,486 74,430
Furniture and fixtures 295,020 17,948 9,350 303,618 216,337 24,064 8,638 231,763 71,855 78,683
Information technology equipment 450,859 54,498 15,683 489,674 318,087 77,526 9,859 385,754 103,920 132,772
Motor vehicles 102,436 27,898 36,511 93,823 41,507 17,446 31,646 27,307 66,516 60,929
Office equipment 437,297 47,358 11,809 472,846 283,031 65,646 10,394 338,283 134,563 154,266
Communication networks 311,662 330,368 6 642,024 181,265 58,764 4 240,025 401,999 130,397
Total 5,140,059 2,430,607 133,680 7,436,986 3,074,646 436,827 119,261 3,392,212 4,044,774 2,065,413
Capital work in progess including - - - - - - - - 175,848 72,346
capital advances
Total 5,140,059 2,430,607 133,680 7,436,986 3,074,646 436,827 119,261 3,392,212 4,220,622 2,137,759
At March 31, 2017 4,642,894 538,625 41,460 5,140,059 2,522,470 578,259 26,083 3,074,646
Refer note 2.13 of schedule 16 for accounting policy related to fixed assets
1
All software are other than those generated internally.
2
Refer note 3.24 of schedule 16
SCHEDULE - 12
SCHEDULE - 11
ADVANCES AND OTHER ASSETS
CASH AND BANK BALANCES
(` in ‘000)
(` in ‘000)
Particulars March 31, 2018 March 31, 2017
Particulars March 31, 2018 March 31, 2017
Cash (including cheques, drafts and stamps)* 1,345,557 1,408,060 Advances
Reserve deposits with ceding companies - -
Bank Balance
Application money for investments (including - -
(a) Deposit Account :
advance for investment property)
(aa) Short-term (due within 12 months of Prepayments 391,765 382,615
the date of balance sheet) - - Advances to Directors/Officers - -
(bb) Others - - Advance tax paid and taxes deducted at source 2,104,345 3,041,332
(b) Current accounts 687,110 728,199 (Net of provision for taxation)
(c) Others 4,768 697 Advances to Employees - -
Money at call and short notice Deposits
(a) With Banks - - Gross 323,320 372,418
(b) With other Institutions - - Less:Provision for doubtful deposits (31,744) (30,933)
Net 291,576 341,485
Others - -
Other advances
Total 2,037,435 2,136,956 Gross 260,757 184,769
Balances with non-scheduled banks included above 1,637 6,831 Less:Provision for doubtful advances (4,830) (3,921)
CASH AND BANK BALANCES Net 255,927 180,848
In India 2,031,292 2,116,146 Other receivables
Outside India 6,143 20,810 Gross 718,597 151,322
Total 2,037,435 2,136,956 Less:Provision for doubtful receivables (19,753) (30,288)
Net 698,844 121,034
*includes cheques in hand amounting to ` 1,214,411 thousands (` 1,378,024 Total (A) 3,742,457 4,067,314
thousands as on March 31, 2017)

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schedules
forming part of the financial statements Continued
SCHEDULE - 12 (contd...) SCHEDULE - 15
ADVANCES AND OTHER ASSETS MISCELLANEOUS EXPENDITURE
(` in ‘000) (To the extent not written off or adjusted)
Particulars March 31, 2018 March 31, 2017
OTHER ASSETS (` in ‘000)
Income accrued on investments and deposits 9,235,233 7,613,849 Particulars March 31, 2018 March 31, 2017
Outstanding premiums 1,649,630 1,815,959 Discount allowed in issue of shares / debentures - -
Agents’ balances
Gross 24,046 31,150 Others - -
Less:Provision for doubtful agents' balance (18,910) (27,053) Total - -
Net 5,136 4,097
Foreign agencies balances - -
Due from other entities carrying on insurance 394,343 88,632 Schedule: 16
business (including reinsurers) Significant accounting policies and notes forming part of the financial statements
Due from subsidiary - Refer note 3.10 of 7,202 6,044 for the year ended March 31, 2018
Schedule 16
Deposit with Reserve Bank of India - - 1. Corporate Information
Receivable towards investments sold 1,024,700 6,081,217
ICICI Prudential Life Insurance Company Limited (‘the Company’) is a joint
Goods & Service tax and Service tax un-utilised 946,975 216,360
venture between ICICI Bank Limited and Prudential Corporation Holdings
credit
Assets held for unclaimed amount of 7,614,642 6,267,915 Limited, incorporated on July 20, 2000 as a Company under the Companies
policyholders*- Refer note 3.5 of schedule 16 Act, 2013 (‘the Act’). The Company is licensed by the Insurance Regulatory and
Income on unclaimed amount of policyholders 482,269 322,510 Development Authority of India (`IRDAI’) for carrying life insurance business in
(net of fund administration expenses)- Refer India. The license is in force as at March 31, 2018.
note 3.5 of schedule 16 The Company carries on business of providing life insurance, pensions
Total (B) 21,360,130 22,416,583 and health insurance to individuals and groups. Riders providing additional
Total (A+B) 25,102,587 26,483,897 benefits are offered under some of these products. The business is conducted
*excluding Income on unclaimed amount of policyholders (net of fund administration in participating, non-participating, non-participating variable and unit linked
expenses) lines of businesses. These products are distributed through individual agents,
corporate agents, banks, brokers, the Company’s proprietary sales force and
SCHEDULE - 13 the Company website.
CURRENT LIABILITIES
2. Summary of significant accounting policies
(` in ‘000)
2.1. Basis of preparation
Particulars March 31, 2018 March 31, 2017
The accompanying financial statements are prepared and presented under
Agents’ balances 1,176,510 669,308 the historical cost convention, unless otherwise stated, and on accrual basis
Balances due to reinsurance companies 99,700 43,440 of accounting, in accordance with accounting principles generally accepted
Deposits held on re-insurance ceded - - in India (Indian GAAP). The company has prepared the financial statements
Premium received in advance 2,060,677 1,284,802 in compliance with the accounting standards notified under section 133 of
the Companies Act 2013, to the extent applicable and in accordance with the
Unallocated premium 2,548,452 4,867,753
provisions of the Insurance Act, 1938, Insurance Regulatory and Development
Sundry creditors 64,593 89,114 Authority Act, 1999, the Insurance Regulatory and Development Authority
Due to holding company - Refer note 3.10 of 863,165 1,064,851 (Preparation of Financial Statements and Auditors’ Report of Insurance
Schedule 16 Companies) Regulations, 2002 and various orders/directions/circulars issued
Claims outstanding 2,548,024 691,659 by the IRDAI and the practices prevailing within the insurance industry in India.
Accounting policies applied have been consistent with previous year except
Due to Officers/ Directors - -
where differential treatment is required as per new pronouncements made
Deposits 88,475 88,475 by the regulatory authorities and except for changes in accounting policy
Expenses payable 5,636,834 5,335,940 mentioned below.
TDS payable 212,925 196,994 The management evaluates all recently issued or revised accounting
Payable towards investments purchased 2,029,546 1,192,640 pronouncements on an ongoing basis.
Unclaimed amount of Policyholders1 - Refer 7,614,642 6,267,915
note 3.6 of schedule 16 2.2. Use of estimates
The Company’s management makes estimates and assumptions that affect the
Interest on unclaimed amount of Policyholders 482,269 322,510
reported amounts of income and expenses for the year, reported balances of
Payable to unit fund 4,583,407 1,567,612 assets and liabilities, and disclosures relating to contingent liabilities as on the
Goods & Service tax/Service tax payable 1,643,143 7,620 date of the financial statements. The estimates and assumptions used in the
Other liabilities* 2,601,763 4,466,629 accompanying financial statements are based upon management’s evaluation
Total 34,254,125 28,157,262 of the relevant facts and circumstances as on the date of the financial
statements. Actual results could differ from those estimates. Any revision to
* Includes unclaimed dividend amounting to ` 4,768 thousands (` 697 thousands at accounting estimates is recognised prospectively.
March 31, 2017)
2.3. Revenue recognition
1
Excluding Interest on unclaimed amount of policyholders.
2.3.1. Premium income
Premium for non-linked policies is recognised as income when due from
SCHEDULE - 14 policyholders. For unit linked business, premium is recognised as income when
PROVISIONS the associated units are created. Premium on lapsed policies is recognised as
(` in ‘000) income when such policies are reinstated.
Particulars March 31, 2018 March 31, 2017 Products having regular premium paying plans with limited premium payment
For taxation - - term and/or pre-determined policy term are treated as regular business with
due classification of premium into first year and renewal. Premium income on
For proposed dividends - Refer note 3.41 of - -
products other than aforesaid is classified as single premium.
schedule 16
For dividend distribution tax - Refer note 3.41 of - - Top up premiums paid by unit linked policyholders’ are considered as single
schedule 16 premium and recognised as income when the associated units are created.
For leave encashment and gratuity 221,844 204,960 2.3.2. Reinsurance premium ceded
For interim dividend - Refer note 3.41 of Reinsurance premium ceded is accounted in accordance with the terms and
schedule 16 - - conditions of the relevant treaties with the reinsurer. Profit commission on
Total 221,844 204,960 reinsurance ceded is netted off against premium ceded on reinsurance.

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 schedules
forming part of the financial statements
2.3.3. Income from investments
Interest income on investments is recognised on accrual basis. Amortisation
of premium or accretion of discount on debt securities is recognised over
the remaining term of such instruments on the basis of effective interest rate
method.
Dividend income, in respect of other than unit linked business, is recognised
when the right to receive dividend is established. Dividend income, in respect
of unit linked business, is recognised on the `ex-dividend date’.
Fees received on lending of equity shares under Securities Lending and
Borrowing scheme (SLB) is recognised as income over the period of the
lending on a straight-line basis.
Lease rentals on investment property is recognised on accrual basis and include
only the realised rent and does not include any notional rent, as prescribed by
IRDA (Preparation of Financial Statements and Auditors’ Report of Insurance
Companies) Regulations 2002. Costs related to operating and maintenance of
investment property are recognised as expense in the Revenue Account and
Profit and Loss Account.
Profit or loss on sale/redemption of debt securities for other than unit linked
business is the difference between the sale consideration net of expenses and
the weighted average amortised cost as on the date of sale. Profit or loss on
sale/redemption of debt securities for unit linked business is the difference
between the sale consideration net of expenses and the weighted average
book cost as on the date of sale.
Profit or loss on sale/redemption of equity shares, equity exchange traded fund
(ETF) and mutual fund units is the difference between the sale consideration
net of expenses and the weighted average book cost as on the date of sale.
In respect of other than unit linked business, the profit or loss includes the
accumulated changes in the fair value previously recognised in Balance Sheet
as “Fair Value Change Account”.
2.3.4. Income from unit linked policies
Income from unit linked policies, which includes fund management charges,
policy administration charges, mortality charges and other charges, if any, are
recovered from the unit linked funds in accordance with terms and conditions
of policies issued and are recognised when due.
2.3.5. Fees and charges
Fees and charges include policy reinstatement fee and loan processing fee
which are recognised on receipt basis.
Interest income on policy loans is also included in fees and charges which is
recognised on an accrual basis.
2.4. Acquisition cost
Acquisition costs are costs that vary with and are primarily related to
acquisition of insurance contracts and are expensed in the period in which
they are incurred.
2.5. Employee benefits
2.5.1. Short term employee benefits
Employee benefits payable within twelve months of rendering the service are
classified as short-term employee benefits. Benefits such as salaries, bonuses,
short term compensated absences and other non-monetary benefits are
recognised in the period in which the employee renders the related service. All
short term employee benefits are accounted on undiscounted basis.
2.5.2. Long term employee benefits: Post-employment
The Company has both defined contribution and defined benefit plans.
Defined contribution plan
The Company has a defined contribution scheme for Superannuation for
its employees. Contributions to the Superannuation scheme are made on a
monthly basis, when due, and charged to Revenue account and Profit and
Loss account, as applicable. The Company has no further obligation beyond
the monthly contribution. The scheme is managed by ICICI Prudential Life
Insurance Company Limited Superannuation Scheme.
Further the Company for certain employees contributes to National Pension
Scheme which is managed and administered by pension fund management
companies licensed by the Pension Funds Regulatory and Development
Authority (`PFRDA’). Contribution made to National Pension Scheme is
charged to Revenue account and Profit and Loss Account as applicable.
Defined benefit plans
Gratuity and Provident fund are defined benefit obligations.
Gratuity: The gratuity benefit payable to the employees of the Company is as per
the provisions of the Payment of Gratuity Act, 1972 or the Company’s gratuity
plan, whichever is higher. The gratuity liability of the Company is actuarially
determined at each Balance Sheet date using projected unit credit method.
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Continued
The Company contributes towards net liabilities to ICICI Prudential Life Insurance
Company Limited Employees’ Group Gratuity Cum Life Insurance Scheme.
The Company recognises the net obligation of the Scheme in Balance Sheet as
an asset or liability, respectively in accordance with Accounting Standard (AS)
15 (revised 2005), ‘Employee benefits’. The discount rate used for estimation of
liability is based on Government securities yield. Gain or loss arising from change
in actuarial assumptions/experience adjustments is recognised in the Revenue
account and Profit or Loss account for the period in which they emerge. Estimated
rate of return on plan assets is based on the expected average long-term rate of
return on investments of the Fund during the estimated term of the obligations.
Provident fund: The Company’s defined benefit obligation towards interest
rate guarantee on the exempt provident fund is actuarially determined and
measured in accordance with the Guidance Note (GN 29) on Valuation of
Interest Rate Guarantees on Exempt Provident Funds under AS 15 (Revised)
issued by The Institute of Actuaries of India.
2.5.3. Other long term employee benefits
Other long term employee benefits includes accumulated compensated
absences that are entitled to be carried forward for future encashment or
availment, at the option of the employee subject to the rules framed by the
Company and includes long term retention incentive payable to employees on
fulfilment of criteria prescribed the Company. The Company’s liability towards
accumulated compensated absences entitlement outstanding at the close of
the year and long term retention incentive are determined actuarially and are
recognised as a liability at the discounted present value of the obligation as at
the Balance Sheet date.
2.5.4. Employee share based payments
The Employee Stock Option Scheme (‘the Scheme’) provides that eligible
employees are granted options to subscribe to equity shares of the Company
which vest in a graded manner. The vested options may be exercised within a
specified period.
The Company follows the intrinsic value method to account for its share-based
employee compensation plans. Compensation cost is measured as the excess,
if any, of the fair market price of the underlying stock over the exercise price
on the grant date and amortised over the vesting period. The fair market price
is the latest closing price, immediately prior to the grant date, on the stock
exchange on which the shares of the company are listed. If the shares are listed
on more than one stock exchange, then, the stock exchange where there is
highest trading volume on the said date is considered.
2.6. Operating lease expenses
 Leases where the lessor effectively retains substantially all the risks and
rewards of ownership are classified as operating leases. Payments made under
operating lease including escalations are recognised as an expense, on a
straight line basis, over the lease term.
2.7. Provision for doubtful debts
The Company regularly evaluates the probability of recovery and provides for
doubtful deposits, advances and others receivables.
2.8. Benefits paid
Benefits paid comprise of policy benefits and claim settlement costs, if any.
Death and rider claims are accounted for on receipt of intimation. Survival and
maturity benefits are accounted when due. Withdrawals and surrenders under
non linked policies are accounted on the receipt of intimation. Withdrawals and
surrenders under unit linked policies are accounted in the respective schemes
when the associated units are cancelled.
Change in Accounting Policy
During the year, for more appropriate presentation, reinsurance claims
receivable are accounted for in the period in which the claim is intimated.
Prior to this change in accounting policy, reinsurance claims receivable were
accounted in the period in which the claim was settled. Consequent to the said
change, reinsurance claims and thereby the profit for the year ended March
31, 2018 is higher by ` 135,177 thousand. Correspondingly, reinsurance claim
receivable is also higher by ` 135,177 thousand as at the Balance Sheet date.
2.9. Actuarial liability valuation
The actuarial liabilities are calculated in accordance with accepted actuarial
practice, requirements of Insurance Act, 1938, regulations notified by the
Insurance Regulatory and Development Authority of India and Actuarial
Practice Standards of the Institute of Actuaries of India.
2.10. Funds for Future Appropriations (FFA)
FFA (Unit linked)
Amounts estimated by Appointed Actuary as FFA in respect of lapsed unit
linked policies, are set aside in the Balance Sheet and are not available for
distribution to Shareholders until the expiry of the maximum revival period.
schedules
forming part of the financial statements
FFA (Participating)
Based on the recommendation of Appointed Actuary unappropriated surplus
is held in the Balance Sheet as Funds for Future Appropriations.
2.11. Investments
Investments are made and accounted for in accordance with the Insurance Act,
1938, Insurance Regulatory and Development Authority of India (Investment)
Regulations, 2016, Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance
Companies) Regulations, 2002, Investments – Master circular, Investment
Policy of the Company and various other circulars/notifications issued by the
IRDAI in this context from time to time.
Investments are recorded at cost on the date of purchase, which includes
brokerage and taxes, if any, but excludes interest accrued as on the date of
purchase.
Broken period interest paid/received is debited/credited to interest receivable
account.
Bonus entitlements are recognised as investments on the ‘ex- bonus date’.
Rights entitlements are recognised as investments on the ‘ex-rights date’.
Any front end discount on investments is reduced from the cost of such
investments.
2.11.1. Classification
Investments maturing within twelve months from the Balance Sheet date and
investments made with the specific intention to dispose them off within twelve
months from the Balance Sheet date are classified as short-term investments.
Investments other than short-term investments are classified as long-term
investments.
2.11.2. Valuation - Other than Unit Linked business
All debt securities including government securities and redeemable preference
shares are considered as `held to maturity’ and stated at historical cost, subject
to amortisation of premium or accretion of discount over the remaining period
to maturity on effective interest rate method.
Money market instruments are valued at historical cost, subject to accretion of discount
over the remaining period to maturity based on effective interest rate method.
Listed equity shares at the Balance Sheet date are stated at fair value being
the last quoted closing price on the National Stock Exchange of India Limited
(‘NSE’) (in case the securities are not listed on NSE, the last quoted closing
price on the BSE Limited (‘BSE’) is used). Unlisted equity shares are stated at
historical cost. Equity shares lent under the Securities Lending and Borrowing
scheme (SLB) continue to be recognised in the Balance Sheet as the Company
retains all the associated risks and rewards of these securities.
Mutual fund units are valued based on the previous days’ net asset values.
Unrealised gains/losses arising due to changes in the fair value of listed equity
shares and mutual fund units are taken to the “Fair Value Change Account” in
the Balance Sheet.
Investment property is held to earn rental income or for capital appreciation
and is not occupied by the Company. Investment property is initially valued at
cost including any directly attributable transaction costs. Investment property
is revalued at least once in every three years. The change in carrying amount
of investment property is taken to “Revaluation reserve” in the Balance Sheet.
Investments in venture fund units are valued at historical cost.
Instruments bought on `reverse repo’ basis are valued at cost plus interest
accrued on reverse repo rate.
Fixed deposits with banks are valued at cost.
The Company assesses at each Balance Sheet date whether there is any
evidence of impairment of any investments. In case of impairment, the carrying
value of such investment is reduced to its fair value and the impairment
loss is recognised in the Revenue/Profit and Loss account after adjusting it
with previously recognised revaluation reserve/Fair value change account.
However, at the Balance Sheet date if there is any indication that a previously
recognised impairment loss no longer exists, then such loss is reversed and
the investment is restated to that extent.
2.11.3. Valuation - Unit Linked business
Central and State government securities are valued as per the valuation price
provided by Credit Rating Information Services of India Limited (CRISIL).
Debt securities other than government securities with a residual maturity over
182 days are valued on a yield to maturity basis, by using spreads over the
benchmark rate (based on the matrix released by the CRISIL on daily basis) to
arrive at the yield for pricing the security.
Debt securities with a residual maturity upto 182 days are valued at last
valuation price plus the difference between the redemption value and last
Continued
valuation price, based on effective interest rate method over the remaining
period to maturity of instrument.
Money market instruments are valued at historical cost, subject to accretion
of discount over the period of maturity/holding based on effective interest rate
method.
Listed equity shares, redeemable preference shares and equity ETF are valued
at market value, being the last quoted closing price on the NSE (in case of
securities not listed on NSE, the last quoted closing price on the BSE is used).
Equity shares lent under the Securities Lending and Borrowing scheme (SLB)
continue to be recognised in the Balance Sheet as the Company retains all the
associated risks and rewards of these securities.
Mutual fund units are valued based on previous day’s Net Asset Value.
Venture fund units are valued at the latest available net asset value of the
respective fund.
Securities with call option are valued at the lower of the value as obtained by
valuing the security upto final maturity date or the call option date. In case there
are multiple call options, the security is valued at the lowest value obtained by
valuing the security at various call dates or upto the final maturity date.
Securities with put option are valued at the higher of the value as obtained by
valuing the security upto final maturity date or the put option date. In case there
are multiple put options, the security is valued at the highest value obtained by
valuing the security at various put dates or upto the final maturity date.
The securities with both put and call option on the same day would be deemed to
mature on the put/call date and would be valued on a yield to maturity basis, by
using spreads over the benchmark rate based on the matrix released by CRISIL.
Instruments bought on `reverse repo’ basis are valued at cost plus interest
accrued on reverse repo rate.
Unrealised gains and losses are recognised in the Revenue account as
prescribed by IRDA (Preparation of Financial Statements and Auditors’ Report
of Insurance Companies) Regulations 2002.
Fixed deposits with banks are valued at cost.
2.11.4. Transfer of investments
Transfer of investments from Shareholders’ fund to the Policyholders’ fund to
meet the deficit in the Policyholders’ account is made at amortised/book cost
or market price, whichever is lower.
The transfer of investments between unit liked funds is done at the price as
specified below.
a. In case of equity, preference shares, ETFs and Government Securities
market price of the latest trade.
b. In case of securities mentioned in (a) if the trade has not taken place on
the day of transfer and for all other securities not part of (a) previous day
valuation price.
 No transfer of investments is carried out between non-linked policyholders’
funds.
2.12. Loans
Loans are stated at historical cost, subject to provision for impairment, if any.
Loans are classified as short term in case the maturity is less than 12 months.
Loans other than short term are classified as long term
2.13. Fixed assets and Impairment
2.13.1. Tangible assets and depreciation
Tangible assets are stated at acquisition cost less accumulated depreciation
and impairment loss, if any. Cost includes the purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those
subsequently recoverable from the tax authorities) and any cost directly
attributable to bring the asset to its working condition for its intended use and
other incidental expenses incurred upto that date. Subsequent expenditure
incurred on tangible assets is expensed out except where such expenditure
results in an increase in future benefits from the existing assets beyond it’s
previously assessed standard of performance.
The useful life of various category of assets is as below:
Asset Useful life (years)
Office buildings on freehold land 60
Improvement to leasehold properties Lease period, subject to
maximum of 9 years
Furniture and fixtures 10
Office equipment 5
Information technology equipment 3
Communication networks and servers 6
Motor vehicles 5
143
 schedules
forming part of the financial statements
Schedule II of the Companies Act 2013 specifies the useful life of eight years
for motor vehicle. As per Company policy, the motor vehicle is transferred to
employee on completion of five years or at written down value (WDV) in case
of separation of employee before five years. Accordingly, the Company has
depreciated the motor vehicle over five years. Assets costing upto ` 5,000 are
considered to be immaterial in value and hence fully depreciated in the year of
acquisition.
Depreciation is provided using straight-line method (‘SLM’) prorated from the
date of being ready to use, upto the date of sale, based on estimated useful life
for each class of asset.
2.13.2. Intangibles
Intangible assets comprising software are stated at cost less amortisation.
Significant expenditure on improvements to software are capitalised when
it is probable that such expenditure will enable the asset to generate future
economic benefits in excess of its originally assessed standards of performance
and such expenditure can be measured and attributed to the asset reliably.
Subsequent capital expenditures are amortised over the remaining useful life
of original software. Software expenses are amortised using SLM over a period
of 4 years from the date of being ready to use.
2.13.3. Capital work in progress
Assets not ready for their intended use and other capital work-in-progress are
carried at cost, comprising direct cost and related incidental expenses.
2.13.4. Impairment of assets
Management periodically assesses, using external and internal sources,
whether there is any indication that an asset may be impaired. If any such
indication exists, an estimate of the recoverable amount of the asset unit is
made. Impairment occurs where the carrying value of the asset exceeds the
recoverable amount. Recoverable amount is higher of an asset’s net selling
price and its value in use. Value in use is the present value of estimated
future cash flows expected to arise from the continuing use of the asset and
its ultimate disposal. If at the Balance Sheet date there is an indication that a
previously assessed impairment loss no longer exists, the recoverable amount
is reassessed and the asset is reflected at the recoverable amount, subject to a
maximum of depreciable historical cost.
2.14. Taxation
2.14.1. Direct taxes
Income tax expense comprises of current tax (i.e. amount of tax for the year
determined in accordance with the Income Tax Act, 1961) and deferred tax
charge or credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year).
Current tax is the amount expected to be paid to the tax authorities after taking
credit for allowances and exemptions in accordance with the Income Tax Act,
1961.
The deferred tax asset and liabilities are recognised using the tax rates that have
been enacted or substantively enacted by the Balance Sheet date. Deferred tax
assets are recognised and carried forward only to the extent there is reasonable
certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realised. However, deferred tax asset in respect
of unabsorbed depreciation or carried forward loss are recognised only if there is
a virtual certainty of realisation of such assets. Deferred tax assets are reviewed
at each Balance Sheet date and written down or written up to reflect the amount
that is reasonable / virtually certain (as the case may be) to be realised.
The Company calculates tax for the participating lines of business in order to
ensure that the expenses pertaining to and identifiable with a particular line of
business are represented as such to enable a more appropriate presentation
of the financial statements. Accordingly, tax charge/credit on surplus/deficit
arising from the participating line of business is disclosed separately in the
Revenue account.
2.14.2. Indirect taxes
Service tax or Goods and Services tax liability on life insurance service is
set-off against the respective service tax and goods and services tax credits
available from tax paid on input services. Unutilised credits, if any, are carried
forward for future set-off, where there is reasonable certainty of utilisation.
2.15. Provisions and contingencies
 Provision is recognized when the company has a present obligation as a
result of past event and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are
determined based on the management estimate of amount required to settle
the obligation at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates. A disclosure
of a contingent liability is made when there is a possible obligation or present
144
Continued
obligations that may, but probably will not, require an outflow of resources or
it cannot be reliably estimated. When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.
Contingent assets are neither recognised nor disclosed.
2.16. Segmental reporting
Based on the primary segments identified under IRDA (Preparation of
Financial Statements and Auditors’ Report of Insurance Companies)
Regulations 2002 (‘the Regulations’) read with AS 17 on “Segmental Reporting”
notified under section 133 of the Companies Act 2013 and rules thereunder,
the Company has classified and disclosed segmental information separately
for Shareholders’ and Policyholders’. Within Policyholders’, the businesses
are further segmented into Participating (Life and Pension), Non-Participating,
Non-Participating variable (Life and Pension), Annuity, Health and Linked (Life,
Pension, Health and Group).
There are no reportable geographical segments, since all business is written in
India.
The allocation and apportionment of revenue, expenses, assets and liabilities
to specific segments is done in the following manner, which is applied on a
consistent basis.
•  evenue, expenses, assets and liabilities that are directly identifiable to
R
the segment are allocated on actual basis;
• Other revenue, expenses (including depreciation and amortisation),
assets and liabilities that are not directly identifiable to a segment are
apportioned based on the relevant drivers which includes:
• Number of policies
• Weighted annualised first year premium income
• Annualised premium since inception
• Sum assured
• Total premium income
• Medical cases
• Funds under management
• Commission
• Total operating expenses (for assets and liabilities)
• Use of asset (for depreciation expense)
2.17. Foreign exchange transactions
Initial recognition: Foreign currency transactions are recorded in Indian Rupees,
by applying to the foreign currency amount the exchange rate between the
Indian Rupee and the foreign currency at the date of the transaction.
Conversion: Foreign currency monetary items are translated using the
exchange rate prevailing at the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the transaction. Non-monetary
items, which are measured at fair value or other similar valuation denominated
in a foreign currency, are translated using the exchange rate at the date when
such value was determined.
Exchange differences: Exchange differences are recognised as income or as
expenses in the period in which they arise.
2.18. Earnings per share
Basic earnings per share are calculated by dividing the profit or loss after tax for
the year attributable to equity shareholders by the weighted average number
of equity shares outstanding during the year. For the purpose of calculating
diluted earnings per share, the profit or loss after tax for the year attributable to
equity shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares
which could have been issued on the conversion of all dilutive potential equity
shares.
Potential equity shares are deemed to be dilutive only if their conversion to
equity shares would decrease the net profit per share from continuing ordinary
operations. Potential dilutive equity shares are deemed to be converted as at
the beginning of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value. Dilutive potential equity shares are
determined independently for each period presented.
2.19. Cash and Cash Equivalents
Cash and cash equivalents for the purpose of Receipts and Payments account
include cash and cheques in hand, bank balances, liquid mutual funds and
other investments with original maturity of three months or less which are
subject to insignificant risk of changes in value.
schedules
forming part of the financial statements
3. Notes to accounts
3.1. Contingent liabilities
Particulars
March 31, 2018
Partly-paid up investments
Claims, other than those under policies, not
acknowledged as debts comprising of:
- Claims made by vendors for disputed
payments
- Claims for damages made by landlords
(of premises taken on lease)
- Claims made by employees and
advisors for disputed dues and
compensation
Underwriting commitments outstanding
(in respect of shares and securities)
Guarantees given by or on behalf of the
Company by various banks in favour of
government authorities, hospital and court
Statutory demands/liabilities in dispute,
not provided for#
Continued
d) Per policy renewal expenses are assumed to inflate at 4.38% per annum.
The expense inflation assumption used at March 31, 2017 was 4.55%.
e) No allowance is made for expected lapses in the future.
(` in ‘000)
f) The bonus rates for participating business to be declared in the future is
At At consistent with the valuation assumptions.
March 31, 2017
g) The tax rate applicable for valuation at March 31, 2018 is 14.56% p.a.
- -
Certain explicit additional provisions are made, which include the following:
a) Reserves for additional expenses that the Company may have to incur if it
were to close to new business twelve months after the valuation date.
1,066 1,034
b) 
Reserves for guarantees available to individual and group insurance
policies.
37,971 37,971
c) Reserves for cost of non-negative claw back additions.
d) Reserves for free look option given to policyholders calculated using a
8,930 5,182
free look cancellation rate of 2.1%. The free look cancellation assumption
used at March 31, 2017 was 2.2%.
e) Reserves for lapsed policies eligible for revivals.
- -
3.3. Funds for Future Appropriations (‘FFA’)
- - The balance of unit-linked FFA at March 31, 2018 of ` 8,036 thousand (March
31, 2017: ` 8,171 thousand) and participating FFA of ` 8,773,567 thousand
(March 31, 2017: ` 6,033,687 thousand) is not available for distribution to
1,536,996 1,536,996 Shareholders. Such amount is classified under Funds for Future appropriations,
in the Balance Sheet.

Reinsurance obligations to the extent not - - 3.4. Claims settled and remaining unpaid
provided for Claims settled and remaining unpaid for a period of more than six months at
Policy related claims under litigation in March 31, 2018 is ` 16,769 thousand (March 31, 2017: ` 15,358 thousand).
different consumer forums:
3.5. Reconciliation of unclaimed amounts of policyholders
- Claims for service deficiency 89,959 86,513
Pursuant to IRDAI circular No. IRDA/F&A/CIR/CLD/114/05/2015 dated May 28,
- Claims against repudiation 308,096 404,963 2015 and IRDA/F&A/CIR/CPM/134/07/2015 dated July 24, 2015 on “Handling of
Others unclaimed amounts pertaining to policyholders”, the Company has created a
single segregated fund to manage all the unclaimed monies. The amount in
- Transfer to Senior Citizen Welfare Fund* 48,166 - such unclaimed fund has been invested in money market instruments and /or
Total 2,031,184 2,072,659 fixed deposit of scheduled banks with effect from April 01, 2016.
# ` 1,536,996 thousand is on account of objections raised by office of the The amount in the unclaimed fund has been disclosed in schedule 12 as “Assets
Commissioner of Service tax, Mumbai (through the Service Tax audit under held for unclaimed amount of policyholders”. Investment income accruing to
EA-2000) on certain positions taken by the Company. such unclaimed fund has been credited to the fund and disclosed as other
income under Linked life segment in the Revenue Account. Such investment
* The above amount represents unclaimed amount of policyholders more income net of fund management charges (‘FMC’) is paid/ accrued as “interest
than 120 months transferred to Senior Citizens’ Welfare Fund (SCWF) which is on unclaimed amounts” in schedule 4 “Benefits paid”.
required to be shown as contingent liability as per IRDAI circular IRDA/F&A/CIR/
Misc/173/07/2017. Further as per the circular, in case Company receives claims Reconciliation of unclaimed amounts of policyholders:
in respect of unclaimed amounts which have been transferred to the SCWF, In accordance with circular IRDA/F&I/CIR/CLD/114/05/2015 issued by the IRDAI
Company may adjust the amount of such claims from the amounts due to be on May 28, 2015, the details of unclaimed amounts and investment income at
transferred to the Fund (SCWF). March 31, 2018 is tabulated as below:
3.2. Actuarial method and assumptions (` in lacs)*
The actuarial liability in respect of both participating and non-participating policies For the year For the year
is calculated using the gross premium method, using assumptions for interest, Particulars ended March ended March
mortality, morbidity, expense and inflation and, in the case of participating policies, 31, 2018 31, 2017
future bonuses together with allowance for taxation and allocation of profits to Opening balance 65,904 49,565
shareholders. These assumptions are determined as prudent estimates at the date Add: Amount transferred to unclaimed 233,687 136,713
of valuation with allowances for adverse deviations. fund
The liability for the unexpired portion of the risk for the non-unit liabilities of Add: Cheques issued out of the unclaimed 3,584 1,878
linked business and attached riders is the greater of liability calculated using amount but not encashed by the
discounted cash flows and unearned premium reserves. policyholders (stale cheques)
Add: Investment income (net of FMC) 4,823 3,906
An unexpired risk reserve and a reserve in respect of claims incurred but not
Less: Amount paid out of unclaimed fund (226,548) (126,158)
reported is held for one year renewable group term insurance.
Less : Transfer to Senior Citizen welfare fund (482) -
The unit liability in respect of linked business is the value of the units standing Closing balance 80,969 65,904
to the credit of policyholders, using the Net Asset Value (`NAV’) prevailing at *Amount disclosed in lacs in accordance with IRDAI circular No. IRDA/F&A/CIR/
the valuation date. CLD/114/05/2015
A brief of the assumptions used in actuarial valuation is as below:
3.6. Age wise analysis of unclaimed amount of policyholders
a) The interest rates used for valuing the liabilities are in the range of 4.66%
In accordance with circular IRDA/F&I/CIR/CMP/174/11/2010 issued by the
to 6.13% per annum. The interest rates used at March 31, 2017 were in the
IRDAI on November 4, 2010, the age wise analysis of unclaimed amount of the
range of 3.49% to 6.20% per annum.
policyholders at March 31, 2018 is tabulated as below:
b) Mortality rates used are based on the published “Indian Assured Lives
a. 
Claims settled but not paid to the policyholders/insured due to any
Mortality (2006 – 2008) Ult.” mortality table for assurances and LIC (a) 96-
reasons except under litigation from the insured/policyholders:
98 table for annuities adjusted to reflect expected experience. Morbidity
rates used are based on CIBT 93 table, adjusted for expected experience, Age-wise analysis (` in lacs)*
or on risk rates supplied by reinsurers. Total
At Outstanding period in months
amount
c) Expenses are provided for at least at the current levels in respect of 0-6 07-12 13-18 19-24 25-30 31-36 36-120
renewal expenses, with no allowance for any future improvement but with March 31, 2018 411 411 - - - - - -
an allowance for any expected worsening. March 31, 2017 4 4 - - - - - -

145
 schedules
forming part of the financial statements Continued
b. Sum due to the policyholders/beneficiaries on maturity or otherwise: Lease rentals pertaining to non-cancellable leases charged to the Revenue
account and the Profit and Loss account for the year ended March 31, 2018
Age-wise analysis (` in lacs)*
Total is ` 32,297 thousand (year ended March 31, 2017: ` 33,184 thousand). The
At Outstanding period in months future minimum lease payments in respect of these non-cancellable leases at
amount
0-6 07-12 13-18 19-24 25-30 31-36 36-120 the Balance Sheet date are summarised below:
March 31, 2018 26,671 16,672 4,293 2,864 750 515 535 1,042
March 31, 2017 23,348 14,426 2,142 1,381 872 2,092 292 2,143 (` in ‘000)
c. Any excess collection of the premium/tax or any other charges which is Particulars At March At March
refundable to the policyholder / beneficiaries either as terms of conditions 31, 2018 31, 2017
of the policy or as per law or as may be directed by the Authority but not Not later than one year 33,518 33,518
refunded so far:
Later than one year but not later than five years 53,071 86,589
Age-wise analysis (` in lacs)* Later than five years - -
Total
At Outstanding period in months
amount
0-6 07-12 13-18 19-24 25-30 31-36 36-120
3.9. Assets given on operating lease
March 31, 2018 416 363 39 5 6 2 - 1
March 31, 2017 776 764 10 2 - - - - The Company has entered into an agreement in the nature of leave and license
for leasing out the investment property. This is in the nature of operating
d. Cheques issued but not encashed by the policyholder / beneficiaries** lease and lease arrangement contains provisions for renewal. There are no
restrictions imposed by lease arrangement and the rent is not determined
Age-wise analysis (` in lacs)* based on any contingency. The total lease payments received in respect of
Total
At Outstanding period in months such lease recognised in Revenue account and Profit and Loss account for the
amount
0-6 07-12 13-18 19-24 25-30 31-36 36-120 year ended March 31, 2018 is ` 179,305 thousand (year ended March 31, 2017:
March 31, 2018 53,242 8,348 10,886 7,867 2,924 2,496 578 20,143 ` 66,797 thousand).
March 31, 2017 41,352 8,088 6,241 4,184 835 903 1,314 19,787
3.10. Details of related parties and transactions with related parties
*Amount disclosed in lacs in accordance with IRDA/F&I/CIR/CMP/174/11/2010
**cheques issued but not encashed by policyholder/beneficiary do not include Related parties and nature of relationship:
cheques which are within the validity period. Nature of Name of the related party
The above unclaimed amount of policyholders does not include ` 229 Lacs relationship
having ageing beyond 120 months, which shall be transferred to Senior
Holding company ICICI Bank Limited
Citizens’ Welfare Fund (SCWF) on or before March 01, 2019 in accordance
with IRDAI Master circular No. IRDA/F&A/CIR/Misc/173/07/2017 on “Unclaimed Substantial interest Prudential Corporation Holdings Limited
Amount of Policyholders” dated July 25, 2017 read with rule 3 (6) of Senior
Subsidiary ICICI Prudential Pension Funds Management Company
Citizens’ Welfare Fund Rules, 2016.
Limited
3.7. Direct taxes Fellow subsidiaries ICICI Securities Limited
The current tax provision is determined in accordance with the provisions of and entities jointly ICICI Securities Inc.
Income Tax Act,1961. The provision for current tax for the year ended March 31, controlled by ICICI Securities Holding Inc.
2018 is ` 2,198,077 thousand (year ended March 31, 2017: ` 1,815,915 thousand). holding company ICICI Venture Funds Management Company Limited
The provision for current tax includes an amount of ` 1,200,710 thousand ICICI Home Finance Company Limited
for the year ended March 31, 2018 (year ended March 31, 2017: ` 788,117 ICICI Trusteeship Services Limited
thousand) which has been charged on the total surplus of the participating line ICICI Securities Primary Dealership Limited
of business in Revenue Account, in line with the Company’s accounting policy. ICICI Investment Management Company Limited
Further, tax expense amounting to ` 997,367 thousand for the year ended ICICI International Limited
March 31, 2018 (year ended March 31, 2017: ` 1,027,798 thousand) pertaining ICICI Bank UK PLC.
to other than participating line of business has been charged to Profit & loss ICICI Bank Canada
account. ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
Deferred tax asset is recognized on the linked funds for future appropriation to
ICICI Prudential Trust Limited
the extent that there is virtual certainty supported by convincing evidence that
ICICI Foundation for Inclusive Growth
sufficient future taxable income will be available against which such deferred
tax asset can be realized. The deferred tax position and the movement for the Consolidated under ICICI Strategic Investments Fund
year ended March 31, 2018 is summarized below: AS-21 by holding
company
(` in ‘000)
Deferred tax asset At April (Charge)/ Credit At March Significant ICICI Prudential Life Insurance Company Limited
1, 2017 for the year 31, 2018 influence Employees’ Group Gratuity Cum Life Insurance Scheme
Linked funds for future 469 (6) 463 ICICI Prudential Life Insurance Company Limited
appropriation Employees’ Provident Fund
ICICI Prudential Life Insurance Company Limited
Deferred tax charge for the year ended March 31, 2018 is ` 6 thousand (year
Superannuation Scheme
ended March 31, 2017: ` 233 thousand).
ICICI Prudential Life Insurance Advisors Benefit Trust
3.8. Operating lease commitments
Key management Sandeep Bakhshi, Managing Director and CEO
The Company takes premises, motor vehicles, office equipment’s, computers, personnel as per Puneet Nanda, Executive Director
servers and modular furniture on operating lease. Certain lease arrangements AS-18 disclosure Sandeep Batra, Executive Director
provide for cancellation by either party and also contain a clause for renewal Judhajit Das, Chief – Human Resources
of the lease agreement. Lease payments on cancellable and non-cancellable Asha Murali, Appointed Actuary
operating lease arrangements are charged to the Revenue account and the
Profit and Loss account over the lease term on a straight line basis. The total
operating lease rentals charged for the year ended March 31, 2018 is ` 526,130
thousand (year ended March 31, 2017: ` 539,758 thousand).

146
schedules
forming part of the financial statements Continued

Relatives of Key management personnel as per AS-18 disclosure

Relatives of KMP Sandeep Bakhshi Sandeep Batra Puneet Nanda Asha Murali Judhajit Das
Spouse Mona Bakhshi Deepa Batra Deepti Nanda P A Murali Isheeta Ganguly
Parent Swarn Bakhshi Veena Batra Kul Bhushan Nanda P S Nagaraj Mita Das
Asha Nanda
Brother/ Sister Sameer Bakhshi Vivek Batra Pankaj Nanda Rekha Somayajula Satrajit Das
Krishna Nagaraj
Children Shivam Bakhshi Arushi Batra Rikhil Nanda Rajiv Murali Adarsh Ganguly Das
Esha Thakurta Pranav Batra Rishita Nanda Akaash Ganguly Das
Minal Bakhshi

The following represents significant transactions between the Company and its related parties:
(` in ‘000)

Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/
(Payable)
FY2018 FY2017 At March At March
31, 2018 31, 2017
ICICI Bank Limited Holding company Premium income 1,060,445 521,860 (75,745) (3,758)
Benefits Paid (184,667) (103,635) (375) -
Interest income on investments 193,183 149,574 91,616 93,464
Recovery of expenses
- Rent, rates and taxes - 866 - -
- Employees’ remuneration and welfare benefits 8 7 8 -
- Recovery of IPO expenses 2,404 509,914 - 635
- Information Technology cost 1,459 1,264 440 1,454
Reimbursement of other expenses
- Legal and Professional Charges (11,866) (11,430) (10,366) (13,062)
- Employees’ remuneration and welfare benefits (1,180) (1,920) - -
- Rent, rates and taxes (540) (2,398) (106) (955)
- Information technology cost (220,371) (170,619) (73,823) (99,656)
Administration support expenses - (5,726,917) - (880,445)
Commission expenses (8,766,983) (3,902,223) (682,279) (63,749)
Bank charges (53,331) (45,959) (20,993) (5,630)
Sale of fixed assets - 1,850 - 194
Purchase of investments (16,353,936) (13,950,900) - -
Sale of investments 6,046,925 4,685,841 - -
Security Deposit outstanding - - 75 121
Outstanding investments - - 2,444,207 2,531,571
Cash & bank balances - - (1,150,539) (2,958,301)
Dividend paid (5,435,935) (3,413,910) - -
ICICI Securities Limited Fellow subsidiary Premium income 5,464 2,362 (79) (244)
Benefits Paid (180) (614) - -
Recovery of expenses
- Rent, rates and taxes 1,937 2,642 - 97
- Information Technology cost 234 326 170 374
Reimbursement of other expenses
- Rents, rates and taxes (376) (89) - (101)
- Employees’ remuneration and welfare benefits (75) - - -
Advertisement & Publicity - (379,990) - (96,669)
Commission expenses (482,593) (333,061) (52,366) (19,246)
Brokerage (30,644) (22,203) (2,235) -
Sale of fixed assets 1,177 - - -
ICICI Venture Funds Fellow subsidiary Premium income 526 523 (730) (749)
Management Company
Limited
ICICI Home Finance Fellow subsidiary Interest income on investments 74,800 3,074 40,781 3,689
Company Limited
Recovery of expenses
- Rent, rates and taxes 2,410 2,145 - 104
Commission Expenses (11,554) (2,061) (1,048) (73)
Outstanding investments - - 999,252 1,004,932

147
 schedules
forming part of the financial statements Continued

(` in ‘000)
Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/
(Payable)
FY2018 FY2017 At March At March
31, 2018 31, 2017
ICICI Securities Primary Fellow subsidiary Premium income 494 280 (197) (187)
Dealership Limited
Benefits Paid - - - -
Interest income on investments 57,125 57,053 30,867 30,867
Purchase of investments (15,838,599) (13,353,705) - -
Sale of investments 5,859,871 9,155,498 - -
Outstanding investments - - 623,696 637,994
ICICI Prudential Asset Fellow subsidiary Premium income 8,874 7,070 (1,387) (883)
Management Company
Benefits Paid (3,050) (2,875) (50) -
Limited
Reimbursement of other expenses
- Employees’ remuneration and welfare benefits - (320) - -
ICICI Lombard General Fellow subsidiary Premium income 9,250 7,511 (1,525) (799)
Insurance Company
Benefits Paid (4,350) (5,288) - -
Limited
Claims received 114 2,573 - -
Reimbursement of other expenses
- Rent, rates and taxes (907) (2,177) (366) (54)
- Employees’ remuneration and welfare benefits - (400) - -
Premium Expense (258,894) (117,930) 55,441 75,418
Purchase of investments (4,511,052) (5,711,461) - -
Sale of investments 3,978,445 3,320,963 - -
Security Deposit outstanding - - 242 547
ICICI Prudential Pension Subsidiary Share capital subscribed - (20,000) - -
Funds Management
Recovery of expenses
Company Limited*
- Communication expenses 76 66 21 20
- Employees’ remuneration and welfare benefits 18,466 17,414 6,438 5,402
- Information technology cost 1,201 186 364 67
- Legal and Professional Charges 32 1 37 -
- Miscellaneous Expenditure - - - -
- Rent, rates and taxes 2,251 1,859 1,032 516
- Travel, conveyance and vehicle running 109 174 47 39
Prudential Corporation Substantial Interest Recovery of expenses
Holdings Limited
Travel Cost 95 - - -
Reimbursement of other expenses
- Employees’ remuneration and welfare benefits - - - -
- Agents training, recruitment and incentives (19,351) (19,611) - -
Dividend paid (2,558,416) (1,427,522) - -
ICICI Prudential Life Significant Premium income 178,580 194,167 (1,406) (274)
Insurance Company influence
Contribution to trust (191,680) (178,350) - (27,776)
Limited Employees’
Group Gratuity Cum
Life Insurance Scheme
ICICI Prudential Life Significant Premium income 9,879 7,632 - -
Insurance Company influence
Contribution to trust (8,086) (6,845) - -
Limited Superannuation
Scheme
ICICI Prudential Life Significant Contribution to trust (133,552) (114,772) (35,952) (30,417)
Insurance Company influence
Limited Employees’
Provident Fund
ICICI Foundation for Entities controlled Premium income 315 242 (6) (1)
Inclusive Growth by Holding
Contribution for CSR activity (172,769) (170,263) - -
Company
Key management Key management Premium income 4,011 3,933 - -
personnel personnel
Dividend paid (2,665) (1,242) - -
Managerial remuneration (196,055) (221,404) - -
Employee stock options outstanding (numbers) - - 561,500 275,000
Employee stock options exercised (numbers) 35,000 260,000 - -
Key management Relatives of key Premium income 101 95 - -
personnel management
Benefits Paid - (2,521) - -
personnel
Dividend paid (6) (2) - -

*Amount recoverable is reported gross of TDS

148
schedules
forming part of the financial statements Continued
3.11. Segmental Reporting
Segment wise information of various items as required under AS 17 “Segmental reporting“ are given below:
For the year ended March 31, 2018 (` in ‘000)
Segments
Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Shareholders Total
Pension Variable Variable Non Par Life Pension Health Group Life Group
Pension Pension
Segment revenue
(excluding contribution
from the Shareholders'
account) 42,597,324 1,717,779 39,432,577 439,257 20,507 5,029,160 319,059 255,162,740 22,688,221 1,763,475 7,341,925 4,909,502 7,443,883 388,865,409
Segment result -
Surplus/ Deficit after
tax (net of contribution
from the Shareholders'
account) 2,953,866 304,677 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 6,058,907 18,938,004
Depreciation/
Amortisation 50,378 180 30,448 65 1 2,084 2,052 343,759 5,287 739 1,081 686 67 436,827
Significant non-cash
expenses* 25,878,589 70,600 28,275,628 41,830 2,270 4,114,254 (114,887) 118,927,565 (27,466,713) 780,167 2,097,175 1,950,211 - 154,556,689
*comprises of change in valuation of policy liabilities, provision for diminution in the value of investments(Net), provision for doubtful debts and bad debts written off.
**As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked
Group Pension from FY2017-18 onwards.

For the year ended March 31, 2017 (` in ‘000)

Segments
Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Shareholders Total
Pension Variable Variable Non Par Life Pension Health Group Life
Pension
Segment revenue
(excluding contribution
from the Shareholders'
account) 33,289,631 1,319,144 35,062,657 933,740 145,109 4,279,132 148,055 242,509,399 36,701,314 2,254,220 15,269,983 6,932,242 378,844,626
Segment result -
Surplus/ Deficit after
tax (net of contribution
from the Shareholders'
account) 1,331,315 380,443 2,327,262 (16,205) (1,815) 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 5,524,881 16,245,028
Depreciation/
Amortisation 72,492 306 47,235 258 29 1,238 283 443,552 8,573 1,057 3,141 95 578,259
Significant non-cash
expenses* 20,225,562 42,349 25,255,580 923,530 136,843 1,704,326 (32,392) 131,347,559 (10,020,908) 1,274,174 4,244,731 - 175,101,354
*comprises of change in valuation of policy liabilities, provision for diminution in the value of investments(Net), provision for doubtful debts and bad debts written off.
**As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked
Group Pension from FY2017-18 onwards.

149
 schedules
forming part of the financial statements Continued
3.12 Segmental Balance Sheet
Segmental Balance Sheet as at 31st March 2018
(` in ‘000)
Segments
Particulars Schedule Par Life Par Non- Par Non Par Non Par Annuities Health Linked Linked Linked Linked Linked Shareholder Total
Pension Variable Variable Non -Par Life Pension Health Group Life Group
Pension Pension
Sources of funds
Shareholders' funds :
Share capital 5 - - - - - - - - - - - - 14,354,987 14,354,987
Share application money - - - - - - - - - - - - - -
E mployees stock option - - - - - - - - - - - - - -
outstanding
Reserve and surplus 6 - - - - - - - - - - - - 51,408,643 51,408,643
C redit/[debit] fair value change - - - - - - - - - - - - 3,080,906 3,080,906
account
Sub - total - - - - - - - - - - - - 68,844,536 68,844,536
Borrowings 7 - - - - - - - - - - - - - -
Policyholders' funds :
C redit/[debit] fair value change 9,237,914 720,772 10,590,406 - - - 7 1,038 49 71 98 282 - 20,550,637
account
R evaluation reserve - 307,236 307,243 - - - - - - - - - - - 614,479
Investment property - Refer note
3.25 of schedule 16
Policy liabilities (A)+(B)+(C) 114,962,045 8,461,222 149,260,494 965,435 139,113 27,004,434 174,172 771,342,103 131,422,696 9,635,317 38,644,015 32,934,523 - 1,284,945,569
 on unit liabilities
N 114,962,045 8,461,222 149,260,494 965,435 139,113 27,004,434 174,172 7,997,780 505,774 454,866 5,763 2,823 - 309,933,921
(mathematical reserves) (A)
P rovision for linked liabilities - - - - - - - 712,730,967 129,642,183 9,180,451 38,638,252 32,931,700 - 923,123,553
(fund reserves) (B)
(a) Provision for linked liabilities - - - - - - - 639,751,628 104,393,427 7,579,427 37,894,567 32,753,811 - 822,372,860
(b) Credit/[debit] fair value - - - - - - - 72,979,339 25,248,756 1,601,024 743,685 177,889 - 100,750,693
change account (Linked)
F unds for discontinued policies - - - - - - - 50,613,356 1,274,739 - - - - 51,888,095
(C) - Refer note 3.38 of
schedule 16
(a) Discontinued on account of - - - - - - - 50,564,021 1,277,135 - - - - 51,841,156
non-payment of premium
(b) Other discontinuance - - - - - - - 117,925 - - - - - 117,925
(c) Credit/[debit] fair value - - - - - - - (68,590) (2,396) - - - - (70,986)
change account
Total linked liabilities (B)+(C) - - - - - - 763,344,323 130,916,922 9,180,451 38,638,252 32,931,700 - 975,011,648
Sub - total 124,507,195 9,489,237 159,850,900 965,435 139,113 27,004,434 174,179 771,343,141 131,422,745 9,635,388 38,644,113 32,934,805 - 1,306,110,685
Funds for Future Appropriations
Linked - - - - - - - 3,213 4,823 - - - - 8,036
Non linked 6,379,355 2,394,212 - - - - - - - - - - - 8,773,567
Sub - total 6,379,355 2,394,212 - - - - - 3,213 4,823 - - - - 8,781,603
Total 130,886,550 11,883,449 159,850,900 965,435 139,113 27,004,434 174,179 771,346,354 131,427,568 9,635,388 38,644,113 32,934,805 68,844,536 1,383,736,824
Application of funds
Investments
Shareholders’ 8 - - - - - - - - - - - - 77,492,895 77,492,895
Policyholders’ 8A 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 - 332,888,519
 sset held to cover linked
A 8B - - - - - - - 763,347,535 130,921,747 9,180,451 38,638,251 32,931,700 - 975,019,684
liabilities
Loans 9 534,644 - 910,500 - - - - 5,444 - - - - - 1,450,588
Fixed assets - net block 10 - - - - - - - - - - - - 4,220,622 4,220,622
 eferred tax asset - Refer note
D - - - - - - - - - - - - 463 463
3.7 of schedule 16
Current assets
Cash and Bank balances 11 21,124 1,202 30,341 67 17 1,306 1,044 75,900 2,424 423 474 315 1,902,798 2,037,435
Advances and Other assets 12 5,673,919 389,238 4,763,378 29,345 6,857 854,989 26,967 9,953,498 130,818 13,777 21,732 9,502 3,228,567 25,102,587
Sub-Total (A) 5,695,043 390,440 4,793,719 29,412 6,874 856,295 28,011 10,029,398 133,242 14,200 22,206 9,817 5,131,365 27,140,022
Current liabilities 13 2,388,178 439,715 1,283,217 (5,621) (321) (1,817,629) 147,804 12,446,224 658,999 19,516 384,961 308,273 18,000,809 34,254,125
Provisions 14 34,014 183 48,791 58 7 709 1,773 130,162 4,126 708 798 515 - 221,844
Sub-Total (B) 2,422,192 439,898 1,332,008 (5,563) (314) (1,816,920) 149,577 12,576,386 663,125 20,224 385,759 308,788 18,000,809 34,475,969
Net Current Assets (C) = (A-B) 3,272,851 (49,458) 3,461,711 34,975 7,188 2,673,215 (121,566) (2,546,988) (529,883) (6,024) (363,553) (298,971) (12,869,444) (7,335,947)
 iscellaneous expenditure (to
M 15 - - - - - - - - - - - - - -
the extent not written-off or
adjusted)
 ebit Balance in Profit & Loss
D - - - - - - - - - - - - - -
Account (Shareholders' account)
Total 130,886,550 11,883,449 159,850,900 965,435 139,113 27,004,434 174,179 771,346,354 131,427,568 9,635,388 38,644,113 32,934,805 68,844,536 1,383,736,824

150
 schedules
forming part of the financial statements Continued
3.12 Segmental Balance Sheet
Segmental Balance Sheet as at 31st March 2017
(` in ‘000)
Segments
Particulars Schedule Par Life Par Non- Par Non Par Non Par Annuities Health Linked Linked Linked Linked Shareholder Total
Pension Variable Variable Non -Par Life Pension Health Group
Pension
Sources of funds
Shareholders' funds :
Share capital 5 - - - - - - - - - - - 14,353,471 14,353,471
Share application money - - - - - - - - - - - - -
Reserve and surplus 6 - - - - - - - - - - - 46,996,096 46,996,096
Credit/[debit] fair value - - - - - - - - - - - 2,730,821 2,730,821
change account
Sub - total - - - - - - - - - - - 64,080,388 64,080,388
Borrowings 7 - - - - - - - - - - - - -
Policyholders' funds :
Credit/[debit] fair value 8,730,743 955,560 8,180,306 - - - - - - - - - 17,866,609
change account
Revaluation reserve - 311,546 292,002 - - - - - - - - - - 603,548
Investment property - Refer
note 3.24 of schedule 16
Policy liabilities (A)+(B)+(C) 89,112,075 8,390,561 121,015,079 923,605 136,843 22,890,173 289,279 652,438,023 158,888,863 8,854,935 67,531,161 - 1,130,470,597
Non unit liabilities 89,112,075 8,390,561 121,015,079 923,605 136,843 22,890,173 289,279 7,942,679 578,010 404,064 12,949 - 251,695,317
(mathematical reserves) (A)
Provision for linked liabilities - - - - - - - 606,104,993 157,290,629 8,450,871 67,518,212 - 839,364,705
(fund reserves) (B)
(a) P  rovision for linked - - - - - - - 572,329,030 85,123,926 6,746,442 65,495,757 - 729,695,155
liabilities
(b) Credit/[debit] fair value - - - - - - - 33,775,963 72,166,703 1,704,429 2,022,455 - 109,669,550
change account (Linked)
Funds for discontinued - - - - - - - 38,390,351 1,020,224 - - - 39,410,575
policies (C) - Refer note 3.37
of schedule 16
(a) D  iscontinued on account - - - - - - - 38,353,333 1,020,224 - - - 39,373,557
of non-payment of
premium
(b) Other discontinuance - - - - - - - 49,293 - - - - 49,293
(c) Credit/[debit] fair value - - - - - - - (12,275) - - - - (12,275)
change account
Total linked liabilities (B)+(C) - - - - - - 644,495,344 158,310,853 8,450,871 67,518,212 - 878,775,280
Sub - total 98,154,364 9,638,123 129,195,385 923,605 136,843 22,890,173 289,279 652,438,023 158,888,863 8,854,935 67,531,161 - 1,148,940,754
Funds for Future
Appropriations
Linked - - - - - - - 3,251 4,920 - - - 8,171
Non linked 3,915,268 2,118,419 - - - - - - - - - - 6,033,687
Sub - total 3,915,268 2,118,419 - - - - - 3,251 4,920 - - - 6,041,858
Total 102,069,632 11,756,542 129,195,385 923,605 136,843 22,890,173 289,279 652,441,274 158,893,783 8,854,935 67,531,161 64,080,388 1,219,063,000
Application of funds
Investments
Shareholders’ 8 - - - - - - - - - - - 66,402,564 66,402,564
Policyholders’ 8A 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 - 270,673,678
Asset held to cover linked 8B - - - - - - - 644,498,595 158,315,773 8,450,871 67,518,212 - 878,783,451
liabilities
Loans 9 319,523 - 483,277 - - - - 3,648 - - - - 806,448
Fixed assets - net block 10 - - - - - - - - - - - 2,137,759 2,137,759
Deferred tax asset - Refer - - - - - - - - - - - 469 469
note 3.7 of schedule 16
Current assets
Cash and Bank balances 11 46,905 216 66,840 35 13 7,873 121 441,762 5,085 230 263 1,567,613 2,136,956
Advances and Other assets 12 4,702,262 349,241 6,654,653 26,425 6,742 838,654 12,387 7,878,479 98,417 6,733 32,376 5,877,528 26,483,897
Sub-Total (A) 4,749,167 349,457 6,721,493 26,460 6,755 846,527 12,508 8,320,241 103,502 6,963 32,639 7,445,141 28,620,853
Current liabilities 13 2,014,200 346,860 1,927,923 (89,521) 385 615,629 240,907 9,622,841 899,317 (15,517) 688,693 11,905,545 28,157,262
Provisions 14 32,699 184 35,499 141 17 358 108 129,124 4,706 649 1,475 - 204,960
Sub-Total (B) 2,046,899 347,044 1,963,422 (89,380) 402 615,987 241,015 9,751,965 904,023 (14,868) 690,168 11,905,545 28,362,222
Net Current Assets (C) = 2,702,268 2,413 4,758,071 115,840 6,353 230,540 (228,507) (1,431,724) (800,521) 21,831 (657,529) (4,460,404) 258,631
(A-B)
Miscellaneous expenditure 15 - - - - - - - - - - - - -
(to the extent not written-off
or adjusted)
Debit Balance in Profit & - - - - - - - - - - - - -
Loss Account (Shareholders'
account)
Total 102,069,632 11,756,542 129,195,385 923,605 136,843 22,890,173 289,279 652,441,274 158,893,783 8,854,935 67,531,161 64,080,388 1,219,063,000

151
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Active Asset Anmol Nivesh Balancer Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund Fund II Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
AAABF 105 LAnmolNiv LBalancer1 LBalancer2 LBalancer3 LBalancer4 LBluChip 105 LCashPlus LDiscont 105 LDynmicPE
105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 12,247,683 (2,960) (6,964,469) (1,938,920) (177,433) 380,431 7,816,722 1,419,378 40,947,809 9,664,701
Revenue account (169,325) 3,043 16,028,592 5,322,375 403,180 614,038 1,779,799 1,484,272 9,665,547 8,934,958
Total 12,078,358 83 9,064,123 3,383,455 225,747 994,469 9,596,521 2,903,650 50,613,356 18,599,659
Application of funds
Investments F-2 11,774,031 72 9,020,848 3,374,772 225,131 987,734 9,631,047 2,878,321 51,998,359 18,464,442
Current assets F-3 306,480 11 254,356 91,094 5,833 28,577 35,902 126,923 60,564 330,849
Less: Current liabilities and provisions F-4 2,153 - 211,081 82,411 5,217 21,842 70,428 101,594 1,445,567 195,632
Net current assets 304,327 11 43,275 8,683 616 6,735 (34,526) 25,329 (1,385,003) 135,217
Total 12,078,358 83 9,064,123 3,383,455 225,747 994,469 9,596,521 2,903,650 50,613,356 18,599,659
(a) Net asset as per balance sheet 12,078,358 83 9,064,123 3,383,455 225,747 994,469 9,596,521 2,903,650 50,613,356 18,599,659
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 1,154,145 4 143,856 71,908 7,742 35,054 490,345 99,168 2,983,617 957,636
(in '000)
(c) NAV per unit (a)/(b) (`) 10.4652 19.1029 63.0082 47.0527 29.1598 28.3693 19.5710 29.2800 16.9638 19.4225

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Flexi Flexi Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Balanced Balanced Balanced Fund Fund II Fund III Fund IV Fund B
Fund II Fund III Fund IV
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 LFlexiBal2 LFlexiBal3 LFlexiBal4 LFlexiGro1 LFlexiGro2 LFlexiGro3 LFlexiGro4 LHighNavB LIncome 105
105 105 105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (234,312) 288,506 1,390 118,296 (14,214,090) 1,529,485 (224,069) (2,027,199) 30,443,610 56,308,713
Revenue account 986,229 612,251 59,445 208,875 23,454,995 9,775,727 1,040,144 8,999,630 11,604,119 7,131,726
Total 751,917 900,757 60,835 327,171 9,240,905 11,305,212 816,075 6,972,431 42,047,729 63,440,439
Application of funds
Investments F-2 751,042 900,290 60,878 327,154 9,294,071 11,352,184 816,671 6,978,379 41,097,114 61,456,446
Current assets F-3 16,862 18,804 1,436 6,708 91,017 65,328 4,845 71,273 1,036,340 4,317,034
Less: Current liabilities and provisions F-4 15,987 18,337 1,479 6,691 144,183 112,300 5,441 77,221 85,725 2,333,041
Net current assets 875 467 (43) 17 (53,166) (46,972) (596) (5,948) 950,615 1,983,993
Total 751,917 900,757 60,835 327,171 9,240,905 11,305,212 816,075 6,972,431 42,047,729 63,440,439
(a) Net asset as per balance sheet 751,917 900,757 60,835 327,171 9,240,905 11,305,212 816,075 6,972,431 42,047,729 63,440,439
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 28,197 28,903 2,305 11,926 285,520 325,597 25,032 234,079 2,651,675 3,186,729
(in '000)
(c) NAV per unit (a)/(b) (`) 26.6663 31.1651 26.3952 27.4331 32.3651 34.7215 32.6010 29.7866 15.8570 19.9077

152
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Invest Shield Invest Shield Life Growth Life Secure Maximise India Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund Fund Fund II Fund III Fund IV
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 2,099,855 (478,026) 18,050,527 15,550,586 2,517,664 (33,892,209) (7,465,090) (1,562,049) (392,762)
Revenue account 1,930,427 1,169,999 1,493,270 711,124 190,616 66,568,916 17,487,573 3,019,576 563,858
Total 4,030,282 691,973 19,543,797 16,261,710 2,708,280 32,676,707 10,022,483 1,457,527 171,096
Application of funds
Investments F-2 3,996,897 687,920 19,449,132 15,578,614 2,644,810 32,454,345 9,994,512 1,456,902 170,268
Current assets F-3 183,675 26,098 308,428 687,118 63,944 370,001 85,587 12,253 1,721
Less: Current liabilities and provisions F-4 150,290 22,045 213,763 4,022 474 147,639 57,616 11,628 893
Net current assets 33,385 4,053 94,665 683,096 63,470 222,362 27,971 625 828
Total 4,030,282 691,973 19,543,797 16,261,710 2,708,280 32,676,707 10,022,483 1,457,527 171,096
(a) Net asset as per balance sheet 4,030,282 691,973 19,543,797 16,261,710 2,708,280 32,676,707 10,022,483 1,457,527 171,096
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 144,413 20,269 1,191,981 1,136,047 217,129 241,160 124,529 42,359 5,927
(in '000)
(c) NAV per unit (a)/(b) (`) 27.9081 34.1400 16.3961 14.3143 12.4731 135.4982 80.4830 34.4088 28.8671

(` in ‘000)
Linked Life Funds
Particulars Schedule Maximiser Money Multi Cap Multi Cap Multiplier Multiplier Multiplier Multiplier New Invest Opportunities
Fund V Market Fund Balanced Fund Growth Fund Fund Fund II Fund III Fund IV Shield Fund
Balanced Fund
ULIF 114 ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086
15/03/11 24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09
LMaximis5 LMoneyMkt LMCapBal LMCapGro LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw LOpport 105
105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 221,761,453 28,588,224 12,160,942 63,391,765 (6,717,896) 449,727 (35,489) (20,404) (881,709) 3,551,889
Revenue account 23,561,135 3,630,175 2,569,011 17,161,329 9,340,304 1,396,172 124,772 690,980 1,656,277 2,729,091
Total 245,322,588 32,218,399 14,729,953 80,553,094 2,622,408 1,845,899 89,283 670,576 774,568 6,280,980
Application of funds
Investments F-2 244,020,552 31,394,204 14,575,597 80,102,204 2,717,568 1,873,241 90,355 687,801 743,854 6,245,078
Current assets F-3 4,183,918 827,287 484,056 1,550,492 405 269 22 106 40,833 98,698
Less: Current liabilities and provisions F-4 2,881,882 3,092 329,700 1,099,602 95,565 27,611 1,094 17,331 10,119 62,796
Net current assets 1,302,036 824,195 154,356 450,890 (95,160) (27,342) (1,072) (17,225) 30,714 35,902
Total 245,322,588 32,218,399 14,729,953 80,553,094 2,622,408 1,845,899 89,283 670,576 774,568 6,280,980
(a) Net asset as per balance sheet 245,322,588 32,218,399 14,729,953 80,553,094 2,622,408 1,845,899 89,283 670,576 774,568 6,280,980
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 10,599,949 1,706,951 660,616 3,138,468 140,877 83,035 4,352 30,338 25,926 269,088
(in '000)
(c) NAV per unit (a)/(b) (`) 23.1438 18.8748 22.2973 25.6664 18.6149 22.2303 20.5161 22.1033 29.8760 23.3417

153
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Pinnacle Pinnacle Preserver Preserver Preserver Protector Protector Protector Protector Return Return
Fund Fund II Fund Fund III Fund IV Fund Fund II Fund III Fund IV Guarantee Guarantee
Fund IX (10 Fund VIII (10
Yrs) Yrs)
ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle LPinnacle2 LPreserv1 LPreserv3 LPreserv4 LProtect1 LProtect2 LProtect3 LProtect4 LRGF(S2) LRGF(S1)
105 105 105 105 105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 3,633,911 2,682,803 367,199 40,725 336,774 (1,659,788) (305,820) (66,990) 2,808,003 27,172 54,997
Revenue account 4,008,006 2,193,419 3,212,259 166,875 229,920 6,845,925 3,029,222 354,902 2,025,723 74,756 144,506
Total 7,641,917 4,876,222 3,579,458 207,600 566,694 5,186,137 2,723,402 287,912 4,833,726 101,928 199,503
Application of funds
Investments F-2 7,519,468 4,790,985 3,567,683 205,604 560,247 5,041,587 2,703,322 285,335 4,700,582 90,754 161,958
Current assets F-3 159,357 107,775 46,538 2,806 14,590 173,323 125,570 13,182 135,111 11,199 37,593
Less: Current liabilities and provisions F-4 36,908 22,538 34,763 810 8,143 28,773 105,490 10,605 1,967 25 48
Net current assets 122,449 85,237 11,775 1,996 6,447 144,550 20,080 2,577 133,144 11,174 37,545
Total 7,641,917 4,876,222 3,579,458 207,600 566,694 5,186,137 2,723,402 287,912 4,833,726 101,928 199,503
(a) Net asset as per balance sheet 7,641,917 4,876,222 3,579,458 207,600 566,694 5,186,137 2,723,402 287,912 4,833,726 101,928 199,503
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 412,494 314,779 124,964 8,103 24,556 144,870 89,451 11,145 195,038 5,896 11,519
(in '000)
(c) NAV per unit (a)/(b) (`) 18.5261 15.4910 28.6439 25.6213 23.0771 35.7986 30.4458 25.8329 24.7835 17.2885 17.3192

(` in ‘000)
Linked Life Funds
Particulars Schedule Return Return RICH Fund RICH Fund II RICH Fund RICH Fund Secure Plus Secure Save Secure Save Unclaimed
Guarantee Guarantee III IV Fund Builder Fund Guarantee fund*
Fund X (10 Fund XI (10 Fund
Yrs) Yrs)
Total*
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) LRGF(S4) LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 98,924 6,109 (980,455) 3,224,858 (140,213) 1,273,255 95,484 11,682 55,219 7,224,073 470,848,192
Revenue account 239,140 7,726 5,387,426 4,584,104 412,540 2,550,919 257,331 16,143 48,360 872,838 300,596,265
Total 338,064 13,835 4,406,971 7,808,962 272,327 3,824,174 352,815 27,825 103,579 8,096,911 771,444,457
Application of funds
Investments F-2 275,748 11,911 4,608,944 7,877,381 270,920 3,865,248 351,358 27,778 101,872 8,153,656 765,445,181
Current assets F-3 62,406 1,927 54,811 68,627 2,984 42,790 12,060 55 1,731 14,661 16,884,243
Less: Current liabilities and provisions F-4 90 3 256,784 137,046 1,577 83,864 10,603 8 24 71,406 10,884,967
Net current assets 62,316 1,924 (201,973) (68,419) 1,407 (41,074) 1,457 47 1,707 (56,745) 5,999,276
Total 338,064 13,835 4,406,971 7,808,962 272,327 3,824,174 352,815 27,825 103,579 8,096,911 771,444,457
(a) Net asset as per balance sheet 338,064 13,835 4,406,971 7,808,962 272,327 3,824,174 352,815 27,825 103,579 8,096,911 771,444,457
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 19,599 821 183,662 298,641 11,288 147,003 12,138 1,301 5,401 697,320
(in '000)
(c) NAV per unit (a)/(b) (`) 17.2488 16.8513 23.9950 26.1484 24.1263 26.0143 29.0673 21.3809 19.1761 11.6115

*includes ` 8,096,911 thousands of assets pertaining to unclaimed amount of policyholders disclosed in ‘Schedule 12 Advance and other assets’ of the financial statements.

154
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Retirement Retirement Retirement SP Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Secure Fund Balanced Fund Fund II Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 02/11/12 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 ERBF 105 ERSF 105 ERSPBF 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1
105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 1,091,678 3,754,755 671,339 130,413 (12,108) (360,487) (2,726,146) 489,922 2,937,421 254,700
Revenue account 183,063 485,056 86,460 15,358 266,200 4,599,710 6,652,132 685,701 3,693,266 673,664
Total 1,274,741 4,239,811 757,799 145,771 254,092 4,239,223 3,925,986 1,175,623 6,630,687 928,364
Application of funds
Investments F-2 1,349,852 4,089,602 717,767 134,294 248,436 4,164,917 3,860,041 1,178,180 6,580,916 919,899
Current assets F-3 4,666 161,270 40,175 11,835 5,812 83,344 78,050 5,752 118,309 18,808
Less: Current liabilities and provisions F-4 79,777 11,061 143 358 156 9,038 12,105 8,309 68,538 10,343
Net current assets (75,111) 150,209 40,032 11,477 5,656 74,306 65,945 (2,557) 49,771 8,465
Total 1,274,741 4,239,811 757,799 145,771 254,092 4,239,223 3,925,986 1,175,623 6,630,687 928,364
(a) Net asset as per balance sheet 1,274,741 4,239,811 757,799 145,771 254,092 4,239,223 3,925,986 1,175,623 6,630,687 928,364
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 93,583 272,990 50,533 10,032 7,548 80,820 91,362 62,107 346,882 34,575
(in '000)
(c) NAV per unit (a)/(b) (`) 13.6215 15.5310 14.9962 14.5304 33.6619 52.4529 42.9715 18.9289 19.1151 26.8507

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Flexi Pension Flexi Pension Pension Pension Pension Pension Pension Pension Multi Pension Multi
Balanced Growth Fund Flexi Growth Growth Fund Income Fund Maximiser Maximiser Money Market Cap Balanced Cap Growth
Fund II Fund II Fund Fund II Fund Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 PFlexiGro1 PFlexiGro2 PGROWTH PIncome 105 PMaximis1 PMaximis2 PMoneyMkt PMCapBal PMCapGro
105 105 105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (346,906) (3,665,099) (13,392,335) 131,185 3,271,188 (2,385,242) (14,095,011) 615,156 433,208 1,703,133
Revenue account 1,133,829 18,999,830 24,064,357 220,989 2,277,932 7,522,245 23,974,508 1,124,069 1,078,084 8,817,353
Total 786,923 15,334,731 10,672,022 352,174 5,549,120 5,137,003 9,879,497 1,739,225 1,511,292 10,520,486
Application of funds
Investments F-2 779,293 15,656,651 10,712,539 356,352 5,332,227 5,108,520 9,833,893 1,750,476 1,492,751 10,535,658
Current assets F-3 15,203 109,974 69,595 2,445 217,999 40,513 66,330 14,252 26,478 65,472
Less: Current liabilities and provisions F-4 7,573 431,894 110,112 6,623 1,106 12,030 20,726 25,503 7,937 80,644
Net current assets 7,630 (321,920) (40,517) (4,178) 216,893 28,483 45,604 (11,251) 18,541 (15,172)
Total 786,923 15,334,731 10,672,022 352,174 5,549,120 5,137,003 9,879,497 1,739,225 1,511,292 10,520,486
(a) Net asset as per balance sheet 786,923 15,334,731 10,672,022 352,174 5,549,120 5,137,003 9,879,497 1,739,225 1,511,292 10,520,486
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 25,993 479,905 300,117 19,181 284,062 37,620 116,642 92,439 71,265 418,907
(in '000)
(c) NAV per unit (a)/(b) (`) 30.2747 31.9537 35.5596 18.3607 19.5349 136.5504 84.6991 18.8148 21.2067 25.1141

155
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Pension Pension Pension Pension Pension Pension Pension Pension Pension
Multiplier Fund Multiplier Opportunities Preserver Protector Protector Return Return Return Return
Fund II Fund Fund Fund Fund II Guarantee Guarantee Guarantee Guarantee
Fund IX (10 Fund VIII Fund X (10 Fund XI (10
Yrs) Yrs) Yrs)
ULIF 043 ULIF 045 ULIF 092 ULIF 011 ULIF 006 ULIF 017 ULIF 108 ULIF 102 ULIF 113 ULIF 122
25/02/08 25/02/08 11/01/10 17/05/04 03/05/02 17/05/04 22/12/10 12/10/10 13/01/11 19/04/11
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 PProtect2 PRGF(S2) PRGF(S1) PRGF(S3) PRGF(S4)
105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (17,371) (565,076) 143,229 650,551 3,811,497 (1,105,077) 12,289 56,299 22,332 6,872
Revenue account 2,909,764 1,929,657 2,615,206 3,605,791 8,187,517 4,832,246 25,917 85,143 56,747 6,618
Total 2,892,393 1,364,581 2,758,435 4,256,342 11,999,014 3,727,169 38,206 141,442 79,079 13,490
Application of funds
Investments F-2 2,948,333 1,387,309 2,769,360 4,249,139 11,821,225 3,606,349 29,810 115,190 69,261 11,311
Current assets F-3 417 200 24,527 54,720 320,282 133,481 8,403 26,279 9,833 2,181
Less: Current liabilities and provisions F-4 56,357 22,928 35,452 47,517 142,493 12,661 7 27 15 2
Net current assets (55,940) (22,728) (10,925) 7,203 177,789 120,820 8,396 26,252 9,818 2,179
Total 2,892,393 1,364,581 2,758,435 4,256,342 11,999,014 3,727,169 38,206 141,442 79,079 13,490
(a) Net asset as per balance sheet 2,892,393 1,364,581 2,758,435 4,256,342 11,999,014 3,727,169 38,206 141,442 79,079 13,490
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 157,939 67,583 119,666 150,012 378,090 126,070 2,213 8,137 4,640 800
(in '000)
(c) NAV per unit (a)/(b) (`) 18.3133 20.1913 23.0511 28.3734 31.7359 29.5642 17.2673 17.3833 17.0424 16.8654

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension Fund
ULIF 052 17/03/08 PRICH1 ULIF 053 17/03/08 PRICH2 ULIF 128 01/12/11 PSECURE ULIF 009 17/11/03 PSecPlus Total
105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (2,263,891) (4,409,597) 1,082,157 33,315 (24,041,707)
Revenue account 12,922,253 10,925,089 197,980 109,727 154,963,461
Total 10,658,362 6,515,492 1,280,137 143,042 130,921,754
Application of funds
Investments F-2 10,796,761 6,584,969 1,241,183 139,749 130,572,213
Current assets F-3 118,700 68,575 39,185 3,316 1,966,381
Less: Current liabilities and provisions F-4 257,099 138,052 231 23 1,616,840
Net current assets (138,399) (69,477) 38,954 3,293 349,541
Total 10,658,362 6,515,492 1,280,137 143,042 130,921,754
(a) Net asset as per balance sheet 10,658,362 6,515,492 1,280,137 143,042 130,921,754
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 387,040 220,544 83,615 5,235
(in '000)
(c) NAV per unit (a)/(b) (`) 27.5381 29.5429 15.3099 27.3259

156
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Health Funds
Particulars Schedule Health Balancer Fund Health Flexi Health Flexi Growth Health Multiplier Health Preserver Health Protector
Balanced Fund Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 563,594 793,650 7,513,222 893,027 107,361 2,726,759 12,597,613
Revenue account (154,859) (221,388) (1,900,542) (260,021) (31,383) (848,970) (3,417,163)
Total 408,735 572,262 5,612,680 633,006 75,978 1,877,789 9,180,450
Application of funds
Investments F-2 405,310 570,269 5,619,096 635,384 69,568 1,821,290 9,120,917
Current assets F-3 12,782 13,765 43,424 2,184 6,417 69,669 148,241
Less: Current liabilities and provisions F-4 9,357 11,772 49,840 4,562 7 13,170 88,708
Net current assets 3,425 1,993 (6,416) (2,378) 6,410 56,499 59,533
Total 408,735 572,262 5,612,680 633,006 75,978 1,877,789 9,180,450
(a) Net asset as per balance sheet 408,735 572,262 5,612,680 633,006 75,978 1,877,789 9,180,450
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 14,435 17,078 132,818 16,917 3,720 80,256
(in '000)
(c) NAV per unit (a)/(b) (`) 28.3161 33.5094 42.2585 37.4190 20.4253 23.3976

(` in ‘000)
Linked Group Life Funds
Particulars Schedule Group Balanced Fund Group Balanced Group Capital Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Fund II Guarantee Short
Term Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (1,985,322) 10,761,531 (80,633) (2,771,683) 2,571,001 33,605 (4,013,140)
Revenue account 13,553,208 2,156,300 111,676 8,286,645 620,159 6,649 6,233,608
Total 11,567,886 12,917,831 31,043 5,514,962 3,191,160 40,254 2,220,468
Application of funds
Investments F-2 10,680,156 12,359,240 29,629 5,196,710 3,032,333 39,906 2,107,838
Current assets F-3 891,913 571,945 1,419 319,303 159,431 560 114,558
Less: Current liabilities and provisions F-4 4,183 13,354 5 1,051 604 212 1,928
Net current assets 887,730 558,591 1,414 318,252 158,827 348 112,630
Total 11,567,886 12,917,831 31,043 5,514,962 3,191,160 40,254 2,220,468
(a) Net asset as per balance sheet 11,567,886 12,917,831 31,043 5,514,962 3,191,160 40,254 2,220,468
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 278,032 884,874 1,166 173,507 209,440 3,114 33,298
(in '000)
(c) NAV per unit (a)/(b) (`) 41.6063 14.5985 26.6265 31.7853 15.2367 12.9283 66.6840

157
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)
(` in ‘000)
Linked Group Life Funds
Particulars Schedule Group Growth Fund II Group Leave Group Leave Group Short Term Debt Group Short Term Debt
Encashment Balance Encashment Income Fund Fund III
Fund Fund Total
ULGF 042 30/04/13 ULGF 013 02/04/08 ULGF 014 02/04/08 ULGF 003 03/04/03 ULGF 039 30/04/13
GGrowth2 105 GLEBal 105 GLEIncome 105 GSTDebt 105 GSTDebt3 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 197,362 419,067 60,300 (2,710,029) 294,210 2,776,269
Revenue account 32,256 635,646 78,723 4,083,399 63,712 35,861,981
Total 229,618 1,054,713 139,023 1,373,370 357,922 38,638,250
Application of funds
Investments F-2 224,046 1,020,305 133,995 1,260,873 317,008 36,402,039
Current assets F-3 6,281 35,493 5,052 112,720 40,968 2,259,643
Less: Current liabilities and provisions F-4 709 1,085 24 223 54 23,432
Net current assets 5,572 34,408 5,028 112,497 40,914 2,236,211
Total 229,618 1,054,713 139,023 1,373,370 357,922 38,638,250
(a) Net asset as per balance sheet 229,618 1,054,713 139,023 1,373,370 357,922 38,638,250
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 14,835 44,093 6,456 49,454 27,817
(in '000)
(c) NAV per unit (a)/(b) (`) 15.4784 23.92 21.5335 27.7709 12.8672

(` in ‘000)
Linked Group Pension Funds
Particulars Schedule Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Balanced Debt Fund Debt Fund II Debt Fund III Growth Fund Growth Growth Fund Short Term
Fund II Fund III Fund II III Debt Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 GCGDebt2 GCGDebt3 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (19,295) 606,369 2,936,468 21,256 (101,331) 989,273 24,167 161,241 161,034 2,348,308
Revenue account 119,556 1,367,164 482,441 14,241 787,979 132,331 25,535 78,272 16,335 2,439,908
Total 100,261 1,973,533 3,418,909 35,497 686,648 1,121,604 49,702 239,513 177,369 4,788,216
Application of funds
Investments F-2 97,294 1,908,120 3,317,191 34,561 660,367 1,075,982 48,559 233,804 170,535 4,698,213
Current assets F-3 3,076 67,561 105,283 944 26,422 45,830 1,254 6,224 7,198 90,908
Less: Current liabilities and provisions F-4 109 2,148 3,565 8 141 208 111 515 364 905
Net current assets 2,967 65,413 101,718 936 26,281 45,622 1,143 5,709 6,834 90,003
Total 100,261 1,973,533 3,418,909 35,497 686,648 1,121,604 49,702 239,513 177,369 4,788,216
(a) Net asset as per balance sheet 100,261 1,973,533 3,418,909 35,497 686,648 1,121,604 49,702 239,513 177,369 4,788,216
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 3,707 78,400 232,654 1,051 25,547 76,172 1,959 9,741 13,560 213,042
(in '000)
(c) NAV per unit (a)/(b) (`) 27.0438 25.1726 14.6953 33.7746 26.8783 14.7247 25.3741 24.5870 13.0802 22.4755

158
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2018

Form A-BS(UL)

(` in ‘000)
Linked Group Pension Funds
Particulars Schedule Group Capital Group SA Group SA Group SA Debt Group SA Group SA Short Group Short
Guarantee Balanced Fund Capital Fund Growth Fund Term Debt Fund Term Debt
Short Term Debt Guarantee Short Fund II
Fund III Term Debt Fund Grand Total*
Total
ULGF 047 ULGF 051 ULGF 052 ULGF 053 ULGF 054 ULGF 055 ULGF 046
27/08/13 03/04/03 03/04/03 03/04/03 30/10/03 GSGF 24/02/04 27/08/13
GCGSTDebt3 GSBLN 105 GSDBT 105 GSSTD 105 105 GSCGSTD 105 GSTDebt2 105
105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 925,721 6,866,445 89,373 5,128,563 4,292,009 1,581,587 (87,499) 25,923,689 488,104,056
Revenue account 212,446 438,506 5,700 308,801 370,337 106,717 101,745 7,008,014 495,012,558
Total 1,138,167 7,304,951 95,073 5,437,364 4,662,346 1,688,304 14,246 32,931,703 983,116,614
Application of funds
Investments F-2 1,114,629 7,040,444 93,466 5,276,619 4,583,031 1,655,299 14,068 32,022,182 973,562,532
Current assets F-3 23,745 272,156 1,622 171,968 93,950 33,291 180 951,612 22,210,120
Less: Current liabilities and provisions F-4 207 7,649 15 11,223 14,635 286 2 42,091 12,656,038
Net current assets 23,538 264,507 1,607 160,745 79,315 33,005 178 909,521 9,554,082
Total 1,138,167 7,304,951 95,073 5,437,364 4,662,346 1,688,304 14,246 32,931,703 983,116,614
(a) Net asset as per balance sheet 1,138,167 7,304,951 95,073 5,437,364 4,662,346 1,688,304 14,246 32,931,703 983,116,614
(total assets less current
liabilities and provisions) (` '000)
(b) Number of Units outstanding 85,148 176,277 3,569 171,346 70,723 60,917 1,136
(in '000)
(c) NAV per unit (a)/(b) (`) 13.3669 41.4403 26.6399 31.7333 65.9236 27.7147 12.5415

*includes ` 8,096,911 thousands of assets pertaining to unclaimed amount of policyholders disclosed in ‘Schedule 12 Advance and other assets’ of the financial statements.

159
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Active Asset Anmol Nivesh Balancer Fund Balancer Fund II Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
AAABF 105 LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105
Opening balance - 10,809 (5,485,553) (1,424,593) (139,654) 534,255 6,102,584 1,441,229 31,467,113 15,221,673
Add: Additions during the year* 12,881,927 1,069 288,900 116,813 2,560 52,467 3,064,875 135,224 39,619,981 1,019,149
Less: Deductions during the year** 634,244 14,838 1,767,816 631,140 40,339 206,291 1,350,737 157,075 30,139,285 6,576,121
Closing balance 12,247,683 (2,960) (6,964,469) (1,938,920) (177,433) 380,431 7,816,722 1,419,378 40,947,809 9,664,701
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Opening balance 101,569 377,237 2,801 165,210 (4,762,484) 4,295,684 (99,450) 1,884,396 43,537,347 50,843,011
Add: Additions during the year* 83,439 94,233 5,486 30,818 534,759 499,790 17,548 389,226 1,430,816 46,765,002
Less: Deductions during the year** 419,320 182,964 6,897 77,732 9,986,365 3,265,989 142,167 4,300,821 14,524,553 41,299,300
Closing balance (234,312) 288,506 1,390 118,296 (14,214,090) 1,529,485 (224,069) (2,027,199) 30,443,610 56,308,713
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Invest Shield Invest Shield Life Growth Life Secure Maximise India Maximiser Fund Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund Fund II Fund III Fund IV Fund V
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105
Opening balance 3,222,862 (399,446) 13,445,848 11,517,988 1,730,006 (27,904,312) (5,251,499) (1,276,053) 35,917 155,160,956
Add: Additions during the year* 163,292 27,308 5,962,932 5,129,191 1,065,537 997,339 283,919 8,949 10,431 95,696,309
Less: Deductions during the year** 1,286,299 105,888 1,358,253 1,096,593 277,879 6,985,236 2,497,510 294,945 439,110 29,095,812
Closing balance 2,099,855 (478,026) 18,050,527 15,550,586 2,517,664 (33,892,209) (7,465,090) (1,562,049) (392,762) 221,761,453
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Money Market Multi Cap Multi Cap Multiplier Fund Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund II Fund III Fund IV Shield Balanced Fund
Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 26/10/09
LMoneyMkt 105 LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw 105 LOpport 105 LPinnacle 105
Opening balance 24,192,760 8,286,125 32,035,158 (998,581) 805,495 (10,355) 287,078 (362,596) 3,626,936 5,365,300
Add: Additions during the year* 21,400,375 5,452,218 40,903,082 153,649 83,337 173 36,285 28,240 1,309,478 1
Less: Deductions during the year** 17,004,911 1,577,401 9,546,475 5,872,964 439,105 25,307 343,767 547,353 1,384,525 1,731,390
Closing balance 28,588,224 12,160,942 63,391,765 (6,717,896) 449,727 (35,489) (20,404) (881,709) 3,551,889 3,633,911
* Represents unit creation
** Represents unit cancellations

160
schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Pinnacle Fund II Preserver Fund Preserver Preserver Protector Fund Protector Protector Protector Return Return
Fund III Fund IV Fund II Fund III Fund IV Guarantee Fund Guarantee Fund
IX (10 Yrs) VIII (10 Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
Opening balance 4,033,441 1,480,340 61,757 469,389 (42,592) 313,028 (27,712) 3,306,460 54,012 92,771
Add: Additions during the year* 2 685,955 23,951 96,651 282,485 188,017 28,054 1,348,507 1 -
Less: Deductions during the year** 1,350,640 1,799,096 44,983 229,266 1,899,681 806,865 67,332 1,846,964 26,841 37,774
Closing balance 2,682,803 367,199 40,725 336,774 (1,659,788) (305,820) (66,990) 2,808,003 27,172 54,997
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Guarantee Fund Fund Builder Fund Guarantee fund
Fund X (10 Yrs) XI (10 Yrs) Fund
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) 105 LRGF(S4) 105 LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Opening balance 193,056 9,086 632,764 4,160,274 (86,896) 1,896,961 98,299 15,679 70,911 6,199,856 390,513,655
Add: Additions during the year* - 3 166,925 342,896 1,176 174,327 14,262 1,489 1,129 23,727,168 312,829,125
Less: Deductions during the year** 94,132 2,980 1,780,144 1,278,312 54,493 798,033 17,077 5,486 16,821 22,702,951 232,494,588
Closing balance 98,924 6,109 (980,455) 3,224,858 (140,213) 1,273,255 95,484 11,682 55,219 7,224,073 470,848,192
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Retirement Easy Retirement Easy Retirement Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Balanced Fund Secure Fund SP Balanced Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Fund Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 ERSPBF 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Opening balance 917,181 2,845,629 443,604 78,087 28,057 456,814 (1,907,098) 791,016 5,073,844 439,221
Add: Additions during the year* 945,239 1,313,263 331,854 53,003 11,440 129,017 137,288 47,750 318,205 83,211
Less: Deductions during the year** 770,742 404,137 104,119 677 51,605 946,318 956,336 348,844 2,454,628 267,732
Closing balance 1,091,678 3,754,755 671,339 130,413 (12,108) (360,487) (2,726,146) 489,922 2,937,421 254,700
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Flexi Pension Growth Pension Income Pension Pension Pension Money Pension Multi Pension Multi
Balanced Fund II Growth Fund Growth Fund II Fund Fund Maximiser Fund Maximiser Market Fund Cap Balanced Cap Growth
Fund II Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 105 PFlexiGro1 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Opening balance (82,321) 4,272,446 (5,812,836) 293,162 3,665,406 (1,267,902) (10,831,516) 1,226,059 740,409 4,728,344
Add: Additions during the year* 48,891 633,331 362,487 45,118 1,100,673 123,332 307,199 349,899 66,024 580,168
Less: Deductions during the year** 313,476 8,570,876 7,941,986 207,095 1,494,891 1,240,672 3,570,694 960,802 373,225 3,605,379
Closing balance (346,906) (3,665,099) (13,392,335) 131,185 3,271,188 (2,385,242) (14,095,011) 615,156 433,208 1,703,133
* Represents unit creation
** Represents unit cancellations

161
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2018

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Pension Multiplier Pension Pension Preserver Pension Protector Pension Protector Pension Return Pension Return
Fund Fund II Opportunities Fund Fund Fund Fund II Guarantee Fund IX Guarantee Fund VIII
(10 Yrs)
ULIF 043 25/02/08 ULIF 045 25/02/08 ULIF 092 11/01/10 ULIF 011 17/05/04 ULIF 006 03/05/02 ULIF 017 17/05/04 ULIF 108 22/12/10 ULIF 102 12/10/10
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105
Opening balance 1,538,515 86,378 959,702 2,593,768 5,185,401 (10,489) 14,250 72,504
Add: Additions during the year* 97,387 46,078 92,601 740,414 2,326,895 648,768 - 2
Less: Deductions during the year** 1,653,273 697,532 909,074 2,683,631 3,700,799 1,743,356 1,961 16,207
Closing balance (17,371) (565,076) 143,229 650,551 3,811,497 (1,105,077) 12,289 56,299
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Pension Return Pension Return Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension
Guarantee Fund X Guarantee Fund XI Fund
(10 Yrs) (10 Yrs) Total
ULIF 113 13/01/11 ULIF 122 19/04/11 ULIF 052 17/03/08 ULIF 053 17/03/08 ULIF 128 01/12/11 ULIF 009 17/11/03
PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105 PSECURE 105 PSecPlus 105
Opening balance 33,583 7,866 1,766,830 (2,363,781) 968,252 37,249 16,987,634
Add: Additions during the year* - - 345,935 193,351 262,773 5,522 11,747,118
Less: Deductions during the year** 11,251 994 4,376,656 2,239,167 148,868 9,456 52,776,459
Closing balance 22,332 6,872 (2,263,891) (4,409,597) 1,082,157 33,315 (24,041,707)
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Opening balance 521,142 726,294 7,146,214 838,739 97,432 2,402,554 11,732,375
Add: Additions during the year* 51,984 77,139 602,242 66,692 13,124 363,794 1,174,975
Less: Deductions during the year** 9,532 9,783 235,234 12,404 3,195 39,589 309,737
Closing balance 563,594 793,650 7,513,222 893,027 107,361 2,726,759 12,597,613
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Group Life Funds
Particulars Group Balanced Fund Group Balanced Fund II Group Capital Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Guarantee Short Term
Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
Opening balance 5,369,630 10,373,551 13,346 3,149,333 2,086,962 19,270 461,569
Add: Additions during the year* 1,243,798 1,301,445 3,576 872,450 942,876 14,335 178,455
Less: Deductions during the year** 8,598,750 913,465 97,555 6,793,466 458,837 - 4,653,164
Closing balance (1,985,322) 10,761,531 (80,633) (2,771,683) 2,571,001 33,605 (4,013,140)
* Represents unit creation
** Represents unit cancellations

162
schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2018

(` in ‘000)
Linked Group Life Funds
Particulars Group Growth Fund II Group Leave Encashment Group Leave Encashment Group Short Term Debt Group Short Term Debt
Balance Fund Income Fund Fund Fund III
Total
ULGF 042 30/04/13 ULGF 013 02/04/08 GLEBal ULGF 014 02/04/08 ULGF 003 03/04/03 ULGF 039 30/04/13
GGrowth2 105 105 GLEIncome 105 GSTDebt 105 GSTDebt3 105
Opening balance 158,530 419,069 60,299 (714,467) 341,901 21,738,993
Add: Additions during the year* 48,554 (2) 1 266,959 116,733 4,989,180
Less: Deductions during the year** 9,722 - - 2,262,521 164,424 23,951,904
Closing balance 197,362 419,067 60,300 (2,710,029) 294,210 2,776,269
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Fund II Balanced Fund Fund II Fund III Growth Fund Growth Fund II Growth Fund III Short Term Debt
Fund III Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105
Opening balance (12,111) 851,611 2,173,782 10,895 178,751 740,601 24,699 169,652 66,887 2,371,764
Add: Additions during the year* 4,020 77,873 1,035,053 11,313 21,057 627,836 4,407 21,042 105,882 194,808
Less: Deductions during the year** 11,204 323,115 272,367 952 301,139 379,164 4,939 29,453 11,735 218,264
Closing balance (19,295) 606,369 2,936,468 21,256 (101,331) 989,273 24,167 161,241 161,034 2,348,308
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group SA Group SA Capital Group SA Debt Group SA Growth Group SA Short Group Short Term
Guarantee Short Balanced Fund Guarantee Short Fund Fund Term Debt Fund Debt Fund II
Term Debt Fund III Term Debt Fund Grand Total
Total
ULGF 047 ULGF 051 ULGF 052 ULGF 053 ULGF 054 ULGF 055 ULGF 046
27/08/13 03/04/03 GSBLN 03/04/03 GSDBT 03/04/03 GSSTD 30/10/03 GSGF 24/02/04 27/08/13
GCGSTDebt3 105 105 105 105 105 GSCGSTD 105 GSTDebt2 105
Opening balance 880,310 - - - - - (87,499) 7,369,342 448,341,999
Add: Additions during the year* 123,104 7,199,218 91,595 5,805,842 4,503,579 1,985,007 - 21,811,636 352,552,034
Less: Deductions during the year** 77,693 332,773 2,222 677,279 211,570 403,420 - 3,257,289 312,789,977
Closing balance 925,721 6,866,445 89,373 5,128,563 4,292,009 1,581,587 (87,499) 25,923,689 488,104,056
* Represents unit creation
** Represents unit cancellations

163
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Active Asset Anmol Nivesh Balancer Fund Balancer Fund II Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 AAABF 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
105 LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105
Approved investments
Government bonds 1,270,364 60 2,071,930 774,722 51,117 224,674 - 1,034,447 9,066,198 6,766,061
Corporate bonds 2,116,023 - 2,293,154 793,931 46,985 242,307 - 1,140,063 - -
Infrastructure bonds 1,418,978 - 1,126,363 494,139 25,248 143,064 3,523 646,907 - 789
Equity 5,961,500 - 3,120,008 1,177,597 77,222 336,753 8,594,904 - - 11,302,272
Money market 345,728 11 45,578 971 1,933 3,087 - 50,915 42,932,161 -
Mutual funds 227,031 1 13,349 4,026 13,914 1,747 575,560 5,789 - 118,737
Deposit with banks 10,000 - - - - - - 200 - -
Preference shares - - 114,750 39,181 2,805 10,445 - - - -
Total 11,349,624 72 8,785,132 3,284,567 219,224 962,077 9,173,987 2,878,321 51,998,359 18,187,859
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 424,407 - 235,716 90,205 5,907 25,657 456,981 - - 276,583
Money market - - - - - - - - - -
Mutual funds - - - - - - 79 - - -
Venture fund - - - - - - - - - -
Total 424,407 - 235,716 90,205 5,907 25,657 457,060 - - 276,583
Grand total 11,774,031 72 9,020,848 3,374,772 225,131 987,734 9,631,047 2,878,321 51,998,359 18,464,442
% of approved investments to Total 96.40% 100.00% 97.39% 97.33% 97.38% 97.40% 95.25% 100.00% 100.00% 98.50%
% of other investments to Total 3.60% 0.00% 2.61% 2.67% 2.62% 2.60% 4.75% 0.00% 0.00% 1.50%

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Approved investments
Government bonds 117,549 138,532 10,170 50,350 - - - - 28,338,719 21,731,570
Corporate bonds 126,288 134,211 5,391 49,991 - - - - 7,024,523 27,101,668
Infrastructure bonds 64,580 79,965 6,210 25,902 - - - - 2,739,421 10,793,784
Equity 403,377 483,937 32,834 173,186 8,538,115 10,358,471 755,618 6,362,617 - -
Money market 2,962 3,910 9 1,933 - - - - 2,712,058 1,481,440
Mutual funds 398 24,088 3,974 12,754 125,739 280,061 12,684 162,246 282,393 83,560
Deposit with banks - - - - - - - - - 264,424
Preference shares 11,274 8,404 519 3,184 - - - - - -
Total 726,428 873,047 59,107 317,300 8,663,854 10,638,532 768,302 6,524,863 41,097,114 61,456,446
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 24,614 27,243 1,771 9,854 630,217 713,652 48,369 453,516 - -
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - -
Venture fund - - - - - - - - - -
Total 24,614 27,243 1,771 9,854 630,217 713,652 48,369 453,516 - -
Grand total 751,042 900,290 60,878 327,154 9,294,071 11,352,184 816,671 6,978,379 41,097,114 61,456,446
% of approved investments to Total 96.72% 96.97% 97.09% 96.99% 93.22% 93.71% 94.08% 93.50% 100.00% 100.00%
% of other investments to Total 3.28% 3.03% 2.91% 3.01% 6.78% 6.29% 5.92% 6.50% 0.00% 0.00%

164
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Invest Shield Invest Shield Life Growth Life Secure Fund Maximise India Maximiser Fund Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund II Fund III Fund IV Fund V
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 105 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105
Approved investments
Government bonds 1,482,568 210,863 - 4,434,051 - - - - - 102,980
Corporate bonds 1,744,162 208,130 - 7,764,194 - - - - - -
Infrastructure bonds 738,192 139,047 - 2,550,488 - - - - - -
Equity - 104,677 16,895,037 - 2,389,446 28,859,077 8,999,208 1,300,543 151,839 213,960,178
Money market 25,317 6,805 - 625,142 - - - - - 507,966
Mutual funds 6,658 4,047 761,450 146,519 62,573 1,095,864 218,771 46,931 3,997 6,698,732
Deposit with banks - - - 58,220 - - - - - -
Preference shares - 6,157 - - - - - - - -
Total 3,996,897 679,726 17,656,487 15,578,614 2,452,019 29,954,941 9,217,979 1,347,474 155,836 221,269,856
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity - 8,194 1,516,629 - 192,791 2,499,404 776,533 109,428 14,432 19,212,487
Money market - - - - - - - - - -
Mutual funds - - 276,016 - - - - - - 3,538,209
Venture fund - - - - - - - - - -
Total - 8,194 1,792,645 - 192,791 2,499,404 776,533 109,428 14,432 22,750,696
Grand total 3,996,897 687,920 19,449,132 15,578,614 2,644,810 32,454,345 9,994,512 1,456,902 170,268 244,020,552
% of approved investments to Total 100.00% 98.81% 90.78% 100.00% 92.71% 92.30% 92.23% 92.49% 91.52% 90.68%
% of other investments to Total 0.00% 1.19% 9.22% 0.00% 7.29% 7.70% 7.77% 7.51% 8.48% 9.32%

(` in ‘000)
Linked Life Funds
Particulars Money Market Multi Cap Multi Cap Multiplier Fund Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund II Fund III Fund IV Shield Balanced Fund
Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 LOpport 26/10/09
LMoneyMkt 105 LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw 105 105 LPinnacle 105
Approved investments
Government bonds - 2,092,951 1,337,230 - - - - 47,445 - 5,130,503
Corporate bonds 9,757,251 2,528,081 - - - - - 267,210 - -
Infrastructure bonds 3,778,793 1,179,942 - 7,958 2,027 122 938 189,989 - -
Equity - 7,515,213 70,284,221 2,467,607 1,691,567 79,867 631,701 136,923 5,567,079 2,204,876
Money market 17,737,615 151,413 758,704 - - - - - - -
Mutual funds 9,845 571,190 3,428,825 107,281 89,283 6,109 21,428 27,679 383,591 141,086
Deposit with banks 110,700 - - - - - - 27,920 - -
Preference shares - 41,941 - - - - - 29,572 - -
Total 31,394,204 14,080,731 75,808,980 2,582,846 1,782,877 86,098 654,067 726,738 5,950,670 7,476,465
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity - 494,866 4,293,224 133,174 90,044 4,242 33,697 10,873 294,408 43,003
Money market - - - - - - - - - -
Mutual funds - - - 1,548 320 15 37 - - -
Venture fund - - - - - - - 6,243 - -
Total - 494,866 4,293,224 134,722 90,364 4,257 33,734 17,116 294,408 43,003
Grand total 31,394,204 14,575,597 80,102,204 2,717,568 1,873,241 90,355 687,801 743,854 6,245,078 7,519,468
% of approved investments to Total 100.00% 96.60% 94.64% 95.04% 95.18% 95.29% 95.10% 97.70% 95.29% 99.43%
% of other investments to Total 0.00% 3.40% 5.36% 4.96% 4.82% 4.71% 4.90% 2.30% 4.71% 0.57%

165
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Pinnacle Fund II Preserver Fund Preserver Preserver Protector Fund Protector Fund II Protector Protector Return Return
Fund III Fund IV Fund III Fund IV Guarantee Fund Guarantee Fund
IX (10 Yrs) VIII (10 Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
Approved investments
Government bonds 3,526,964 - - - 1,258,746 983,799 94,697 1,043,810 18,328 2,036
Corporate bonds - 1,058,624 49,470 102,983 2,602,126 1,181,046 120,662 2,192,968 11,214 29,572
Infrastructure bonds - 149,650 22,080 73,262 1,120,690 473,726 59,042 1,005,433 27,175 42,598
Equity 1,187,789 - - - - - - - - -
Money market - 1,936,069 113,958 309,044 55,804 40,683 2,933 171,303 1,895 -
Mutual funds 53,245 408,840 19,256 65,458 4,221 24,068 8,001 287,068 13,742 18,172
Deposit with banks - 14,500 840 9,500 - - - - 18,400 69,580
Preference shares - - - - - - - - - -
Total 4,767,998 3,567,683 205,604 560,247 5,041,587 2,703,322 285,335 4,700,582 90,754 161,958
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 22,987 - - - - - - - - -
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - -
Venture fund - - - - - - - - - -
Total 22,987 - - - - - - - - -
Grand total 4,790,985 3,567,683 205,604 560,247 5,041,587 2,703,322 285,335 4,700,582 90,754 161,958
% of approved investments to Total 99.52% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% of other investments to Total 0.48% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

(` in ‘000)
Linked Life Funds
Particulars Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Fund Guarantee Fund Fund Builder Fund Guarantee fund
X (10 Yrs) XI (10 Yrs) Fund
Total
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) 105 LRGF(S4) 105 LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee 105 UNCLAIM 105
Approved investments
Government bonds 22,910 2,084 - - - - 106,761 1,179 19,738 - 93,566,106
Corporate bonds 118,422 3,080 - - - - 103,771 1,191 20,739 - 70,939,431
Infrastructure bonds 46,382 2,324 - - - - 56,947 - 14,377 - 29,250,055
Equity - - 4,341,059 7,183,482 253,952 3,626,967 52,753 18,843 35,665 - 437,617,980
Money market - - - - - - 2,933 1,815 958 8,139,156 78,172,209
Mutual funds 4,659 1,233 53,135 317,703 5,807 79,471 20,549 3,761 8,461 - 17,176,760
Deposit with banks 83,375 3,190 - - - - - - - 14,500 685,349
Preference shares - - - - - - - - 11 - 268,243
Total 275,748 11,911 4,394,194 7,501,185 259,759 3,706,438 343,714 26,789 99,949 8,153,656 727,676,133
Other investments
Corporate bonds - - - - - - 4,269 - - - 4,269
Infrastructure bonds - - - - - - - - - - -
Equity - - 214,750 376,196 11,161 158,810 3,375 989 1,923 - 33,942,312
Money market - - - - - - - - - - -
Mutual funds - - - - - - - - - - 3,816,224
Venture fund - - - - - - - - - - 6,243
Total - - 214,750 376,196 11,161 158,810 7,644 989 1,923 - 37,769,048
Grand total 275,748 11,911 4,608,944 7,877,381 270,920 3,865,248 351,358 27,778 101,872 8,153,656 765,445,181
% of approved investments to Total 100.00% 100.00% 95.34% 95.22% 95.88% 95.89% 97.82% 96.44% 98.11% 100.00% 95.07%
% of other investments to Total 0.00% 0.00% 4.66% 4.78% 4.12% 4.11% 2.18% 3.56% 1.89% 0.00% 4.93%

166
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Retirement Easy Retirement Easy Retirement Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Balanced Fund Secure Fund SP Balanced Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Fund Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 ERSPBF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Approved investments
Government bonds 242,881 562,395 135,790 18,945 64,884 829,911 770,294 - 2,391,702 127,356
Corporate bonds - 1,049,209 284,847 17,460 87,684 1,350,814 1,153,679 - - 192,429
Infrastructure bonds - 344,140 118,106 7,016 26,895 308,458 388,170 - - 49,921
Equity - 1,719,097 - 57,855 38,417 1,472,450 1,350,142 1,061,699 4,009,881 499,228
Money market 1,106,971 91,503 74,358 14,648 2,415 29,936 30,427 - - 5,294
Mutual funds - 177,024 99,870 13,559 23,627 7,606 9,102 59,643 80,151 4,677
Deposit with banks - - 4,796 - - - - - - -
Preference shares - 1,520 - - 1,452 49,774 49,775 - - 11,392
Total 1,349,852 3,944,888 717,767 129,483 245,374 4,048,949 3,751,589 1,121,342 6,481,734 890,297
Other investments
Corporate bonds - - - - - 2,135 3,202 - - -
Infrastructure bonds - - - - - - - - - -
Equity - 144,714 - 4,811 3,062 113,833 105,250 56,655 99,182 29,602
Money market - - - - - - - - - -
Mutual funds - - - - - - - 183 - -
Venture fund - - - - - - - - - -
Total - 144,714 - 4,811 3,062 115,968 108,452 56,838 99,182 29,602
Grand total 1,349,852 4,089,602 717,767 134,294 248,436 4,164,917 3,860,041 1,178,180 6,580,916 919,899
% of approved investments to Total 100.00% 96.46% 100.00% 96.42% 98.77% 97.22% 97.19% 95.18% 98.49% 96.78%
% of other investments to Total 0.00% 3.54% 0.00% 3.58% 1.23% 2.78% 2.81% 4.82% 1.51% 3.22%

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Flexi Pension Growth Pension Income Pension Pension Pension Money Pension Multi Pension Multi
Balanced Fund II Growth Fund Growth Fund II Fund Fund Maximiser Fund Maximiser Market Fund Cap Balanced Cap Growth
Fund II Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 105 PFlexiGro1 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt 105 PMCapBal 105 PMCapGro 105
Approved investments
Government bonds 111,442 - - - 1,371,776 - - - 204,484 -
Corporate bonds 133,943 - - - 2,737,531 - - 593,811 300,427 -
Infrastructure bonds 67,237 - - - 1,071,432 - - 91,599 80,875 -
Equity 423,581 14,365,825 9,823,226 324,153 - 4,629,643 8,967,445 - 807,792 9,701,406
Money market 3,874 - - - 145,008 - - 1,056,632 29,345 -
Mutual funds 290 295,618 172,019 4,263 4,160 96,424 126,263 8,231 150 247,292
Deposit with banks - - - - 2,320 - - 203 - -
Preference shares 13,100 - - - - - - - 16,038 -
Total 753,467 14,661,443 9,995,245 328,416 5,332,227 4,726,067 9,093,708 1,750,476 1,439,111 9,948,698
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 25,826 995,208 717,294 27,936 - 382,453 740,185 - 53,640 586,960
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - -
Venture fund - - - - - - - - - -
Total 25,826 995,208 717,294 27,936 - 382,453 740,185 - 53,640 586,960
Grand total 779,293 15,656,651 10,712,539 356,352 5,332,227 5,108,520 9,833,893 1,750,476 1,492,751 10,535,658
% of approved investments to Total 96.69% 93.64% 93.30% 92.16% 100.00% 92.51% 92.47% 100.00% 96.41% 94.43%
% of other investments to Total 3.31% 6.36% 6.70% 7.84% 0.00% 7.49% 7.53% 0.00% 3.59% 5.57%

167
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Pension Multiplier Pension Pension Preserver Pension Protector Pension Protector Pension Return Pension Return
Fund Fund II Opportunities Fund Fund Fund Fund II Guarantee Fund IX Guarantee Fund VIII
(10 Yrs)
ULIF 043 25/02/08 ULIF 045 25/02/08 ULIF 092 11/01/10 ULIF 011 17/05/04 ULIF 006 03/05/02 ULIF 017 17/05/04 ULIF 108 22/12/10 ULIF 102 12/10/10
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105
Approved investments
Government bonds - - - - 3,081,889 1,059,337 - -
Corporate bonds - - - 1,391,410 6,822,623 1,554,277 6,184 23,688
Infrastructure bonds - - - 291,288 1,507,256 938,453 7,229 20,863
Equity 2,692,895 1,263,548 2,502,356 - - - - -
Money market - - - 2,521,846 370,381 46,926 - -
Mutual funds 111,446 56,138 129,294 44,595 31,076 7,352 3,382 8,799
Deposit with banks - - - - 8,000 4 13,015 61,840
Preference shares - - - - - - - -
Total 2,804,341 1,319,686 2,631,650 4,249,139 11,821,225 3,606,349 29,810 115,190
Other investments
Corporate bonds - - - - - - - -
Infrastructure bonds - - - - - - - -
Equity 143,926 67,467 137,710 - - - - -
Money market - - - - - - - -
Mutual funds 66 156 - - - - - -
Venture fund - - - - - - - -
Total 143,992 67,623 137,710 - - - - -
Grand total 2,948,333 1,387,309 2,769,360 4,249,139 11,821,225 3,606,349 29,810 115,190
% of approved investments to Total 95.12% 95.13% 95.03% 100.00% 100.00% 100.00% 100.00% 100.00%
% of other investments to Total 4.88% 4.87% 4.97% 0.00% 0.00% 0.00% 0.00% 0.00%

(` in ‘000)
Linked Pension Funds
Particulars Pension Return Pension Return Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension
Guarantee Fund X Guarantee Fund XI Fund
(10 Yrs) (10 Yrs) Total
ULIF 113 13/01/11 ULIF 122 19/04/11 ULIF 052 17/03/08 ULIF 053 17/03/08 ULIF 128 01/12/11 ULIF 009 17/11/03
PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105 PSECURE 105 PSecPlus 105
Approved investments
Government bonds 14,493 2,557 - - 260,684 35,116 11,285,936
Corporate bonds 11,312 1,021 - - 553,403 35,116 18,300,868
Infrastructure bonds 18,753 3,109 - - 240,713 31,544 5,613,057
Equity - - 9,977,902 6,072,878 - 21,523 81,782,942
Money market - - - - 15,274 1,441 5,546,279
Mutual funds 8,183 224 262,877 191,254 171,109 13,611 2,469,309
Deposit with banks 16,520 4,400 - - - - 111,098
Preference shares - - - - - - 143,051
Total 69,261 11,311 10,240,779 6,264,132 1,241,183 138,351 125,252,540
Other investments
Corporate bonds - - - - - - 5,337
Infrastructure bonds - - - - - - -
Equity - - 555,982 320,837 - 1,398 5,313,931
Money market - - - - - - -
Mutual funds - - - - - - 405
Venture fund - - - - - - -
Total - - 555,982 320,837 - 1,398 5,319,673
Grand total 69,261 11,311 10,796,761 6,584,969 1,241,183 139,749 130,572,213
% of approved investments to Total 100.00% 100.00% 94.85% 95.13% 100.00% 99.00% 95.93%
% of other investments to Total 0.00% 0.00% 5.15% 4.87% 0.00% 1.00% 4.07%

168
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Approved investments
Government bonds 90,965 84,928 - - - 510,145 686,038
Corporate bonds 92,356 90,589 - - 8,520 895,785 1,087,250
Infrastructure bonds 42,964 47,821 - - 6,025 217,780 314,590
Equity 136,206 299,068 5,158,699 568,469 - - 6,162,442
Money market 2,914 2,906 - - 38,965 37,961 82,746
Mutual funds 26,565 24,830 170,671 36,492 10,158 131,819 400,535
Deposit with banks - - - - 5,900 27,800 33,700
Preference shares 3,002 3,145 - - - - 6,147
Total 394,972 553,287 5,329,370 604,961 69,568 1,821,290 8,773,448
Other investments
Corporate bonds - - - - - - -
Infrastructure bonds - - - - - - -
Equity 10,338 16,982 289,726 30,286 - - 347,332
Money market - - - - - - -
Mutual funds - - - 137 - - 137
Venture fund - - - - - - -
Total 10,338 16,982 289,726 30,423 - - 347,469
Grand total 405,310 570,269 5,619,096 635,384 69,568 1,821,290 9,120,917
% of approved investments to Total 97.45% 97.02% 94.84% 95.21% 100.00% 100.00% 96.19%
% of other investments to Total 2.55% 2.98% 5.16% 4.79% 0.00% 0.00% 3.81%

(` in ‘000)
Linked Group Life Funds
Particulars Group Balanced Fund Group Balanced Fund II Group Capital Guarantee Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Short Term Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
Approved investments
Government bonds 2,641,145 2,892,284 - 1,275,498 739,900 - 276,692
Corporate bonds 4,365,382 4,927,140 6,499 2,821,396 1,523,187 - 346,994
Infrastructure bonds 1,326,719 1,917,127 3,006 1,011,267 700,608 - 121,751
Equity 1,662,236 1,871,974 - - - 35,025 1,107,845
Money market 124,700 328,977 16,120 65,492 9,472 - 203
Mutual funds 14,067 120,415 4,004 357 34,466 1,404 4,401
Deposit with banks 12,014 24,996 - 22,700 24,700 - -
Preference shares 141,862 - - - - - 124,615
Total 10,288,125 12,082,913 29,629 5,196,710 3,032,333 36,429 1,982,501
Other investments
Corporate bonds 198,529 74,715 - - - - 16,010
Infrastructure bonds 20,386 10,193 - - - - -
Equity 173,116 191,419 - - - 3,477 109,327
Money market - - - - - - -
Mutual funds - - - - - - -
Venture fund - - - - - - -
Total 392,031 276,327 - - - 3,477 125,337
Grand total 10,680,156 12,359,240 29,629 5,196,710 3,032,333 39,906 2,107,838
% of approved investments to Total 96.33% 97.76% 100.00% 100.00% 100.00% 91.29% 94.05%
% of other investments to Total 3.67% 2.24% 0.00% 0.00% 0.00% 8.71% 5.95%

169
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Group Life Funds
Particulars Group Growth Fund II Group Leave Encashment Group Leave Encashment Group Short Term Debt Fund Group Short Term Debt
Balance Fund Income Fund Fund III
Total
ULGF 042 30/04/13 ULGF 013 02/04/08 GLEBal ULGF 014 02/04/08 ULGF 003 03/04/03 GSTDebt ULGF 039 30/04/13
GGrowth2 105 105 GLEIncome 105 105 GSTDebt3 105
Approved investments
Government bonds 37,213 245,693 28,394 - - 8,136,819
Corporate bonds 31,989 334,623 63,791 313,846 109,568 14,844,415
Infrastructure bonds 10,015 167,599 22,152 60,646 25,269 5,366,159
Equity 113,933 152,424 - - - 4,943,437
Money market 950 10,085 1,443 729,592 177,020 1,464,054
Mutual funds 19,158 87,685 18,215 129,289 5,151 438,612
Deposit with banks - - - 27,500 - 111,910
Preference shares - 5,952 - - - 272,429
Total 213,258 1,004,061 133,995 1,260,873 317,008 35,577,835
Other investments
Corporate bonds - - - - - 289,254
Infrastructure bonds - - - - - 30,579
Equity 10,788 16,244 - - - 504,371
Money market - - - - - -
Mutual funds - - - - - -
Venture fund - - - - - -
Total 10,788 16,244 - - - 824,204
Grand total 224,046 1,020,305 133,995 1,260,873 317,008 36,402,039
% of approved investments to Total 95.18% 98.41% 100.00% 100.00% 100.00% 97.74%
% of other investments to Total 4.82% 1.59% 0.00% 0.00% 0.00% 2.26%

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee
Balanced Fund Balanced Fund II Balanced Fund III Debt Fund Debt Fund II Debt Fund III Growth Fund
ULGF 006 03/10/05 ULGF 010 21/03/07 ULGF 049 27/08/13 ULGF 007 28/10/05 ULGF 011 21/03/07 ULGF 048 27/08/13 ULGF 008 11/12/06
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 105
Approved investments
Government bonds 24,298 482,106 724,349 6,379 160,917 222,096 11,483
Corporate bonds 29,920 624,345 990,731 11,204 293,016 461,534 7,285
Infrastructure bonds 11,012 265,103 541,508 2,001 104,254 183,718 3,004
Equity 14,456 288,061 496,919 - - - 15,953
Money market 959 20,187 151,107 10,274 10,144 50,329 3,958
Mutual funds 11,363 121,981 364,245 4,703 92,036 150,265 4,921
Deposit with banks - - - - - 8,040 -
Preference shares 590 11,779 - - - - 345
Total 92,598 1,813,562 3,268,859 34,561 660,367 1,075,982 46,949
Other investments
Corporate bonds 3,202 65,109 - - - - -
Infrastructure bonds - - - - - - -
Equity 1,494 29,449 48,332 - - - 1,610
Money market - - - - - - -
Mutual funds - - - - - - -
Venture fund - - - - - - -
Total 4,696 94,558 48,332 - - - 1,610
Grand total 97,294 1,908,120 3,317,191 34,561 660,367 1,075,982 48,559
% of approved investments to Total 95.17% 95.04% 98.54% 100.00% 100.00% 100.00% 96.68%
% of other investments to Total 4.83% 4.96% 1.46% 0.00% 0.00% 0.00% 3.32%

170
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2018

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group Capital Guarantee Group SA Balanced Group SA Capital Group SA Debt Fund
Growth Fund II Growth Fund III Short Term Debt Fund II Short Term Debt Fund III Fund Guarantee Short Term
Debt Fund
ULGF 012 05/07/07 ULGF 050 27/08/13 ULGF 009 16/03/07 ULGF 047 27/08/13 ULGF 051 03/04/03 ULGF 052 03/04/03 ULGF 053 03/04/03
GCGGrowth2 105 GCGGrowth3 105 GCGSTDebt2 105 GCGSTDebt3 105 GSBLN 105 GSDBT 105 GSSTD 105
Approved investments
Government bonds 48,855 58,319 - - 1,704,207 - 1,170,438
Corporate bonds 46,408 30,578 1,465,951 321,384 2,947,077 10,025 2,854,735
Infrastructure bonds 24,164 9,997 242,583 80,861 799,769 15,057 1,127,155
Equity 76,766 56,563 - - 1,076,884 - -
Money market 20,166 1,418 2,818,398 593,757 135,483 59,680 66,442
Mutual funds 8,099 6,371 171,281 118,624 138,696 8,704 57,849
Deposit with banks - 2,000 - 3 4,000 - -
Preference shares 729 - - - - - -
Total 225,187 165,246 4,698,213 1,114,629 6,806,116 93,466 5,276,619
Other investments
Corporate bonds 1,067 - - - 115,275 - -
Infrastructure bonds - - - - 10,193 - -
Equity 7,550 5,289 - - 108,860 - -
Money market - - - - - - -
Mutual funds - - - - - - -
Venture fund - - - - - - -
Total 8,617 5,289 - - 234,328 - -
Grand total 233,804 170,535 4,698,213 1,114,629 7,040,444 93,466 5,276,619
% of approved investments to Total 96.31% 96.90% 100.00% 100.00% 96.67% 100.00% 100.00%
% of other investments to Total 3.69% 3.10% 0.00% 0.00% 3.33% 0.00% 0.00%

(` in ‘000)
Linked Group Pension Funds
Particulars Group SA Growth Fund Group SA Short Term Debt Fund Group Short Term Debt Fund II Grand Total
Total
ULGF 054 30/10/03 GSGF 105 ULGF 055 24/02/04 GSCGSTD 105 ULGF 046 27/08/13 GSTDebt2 105
Approved investments
Government bonds 560,472 - - 5,173,919 118,848,818
Corporate bonds 971,790 439,645 2,503 11,508,131 116,680,095
Infrastructure bonds 214,393 96,183 2,008 3,722,770 44,266,631
Equity 2,327,662 - - 4,353,264 534,860,065
Money market 71,695 1,002,407 7,651 5,024,055 90,289,343
Mutual funds 175,400 117,064 1,906 1,553,508 22,038,724
Deposit with banks - - - 14,043 956,100
Preference shares - - - 13,443 703,313
Total 4,321,412 1,655,299 14,068 31,363,133 928,643,089
Other investments
Corporate bonds 26,684 - - 211,337 510,197
Infrastructure bonds - - - 10,193 40,772
Equity 234,935 - - 437,519 40,545,465
Money market - - - - -
Mutual funds - - - - 3,816,766
Venture fund - - - - 6,243
Total 261,619 - - 659,049 44,919,443
Grand total 4,583,031 1,655,299 14,068 32,022,182 973,562,532
% of approved investments to Total 94.29% 100.00% 100.00% 97.94% 95.39%
% of other investments to Total 5.71% 0.00% 0.00% 2.06% 4.61%

171
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Active Asset Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund II Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 AAABF 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
105 LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105
Accrued interest 102,599 1 119,218 40,277 2,511 13,642 5 60,715 58,979 135,996
Cash & Bank balance 405 10 215 89 15 32 843 167 1,585 871
Dividend receivable - - 7,247 2,475 177 660 443 - - -
Receivable for sale of 43,049 - 127,675 48,253 3,130 14,082 - 64,981 - 193,938
investments
Unit collection a/c 160,427 - - - - 161 34,595 1,059 - -
Other current assets (for - - 1 - - - 16 1 - 44
Investments)
Total 306,480 11 254,356 91,094 5,833 28,577 35,902 126,923 60,564 330,849

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Accrued interest 6,683 7,476 424 2,603 - - - - 1,036,330 1,427,328
Cash & Bank balance 28 32 12 18 434 504 46 322 10 918
Dividend receivable 795 630 40 237 1,728 2,174 154 1,540 - -
Receivable for sale of 9,355 10,665 960 3,850 88,831 62,616 4,644 69,378 - 1,538,654
investments
Unit collection a/c - - - - - - - - - 1,350,118
Other current assets (for 1 1 - - 24 34 1 33 - 16
Investments)
Total 16,862 18,804 1,436 6,708 91,017 65,328 4,845 71,273 1,036,340 4,317,034

(` in ‘000)
Linked Life Funds
Particulars Invest Shield Invest Shield Life Growth Life Secure Maximise India Maximiser Fund Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund Fund II Fund III Fund IV Fund V
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105
Accrued interest 92,411 12,742 - 345,718 - (37) - - - 2,490
Cash & Bank balance 1 16 1,086 239 156 1,937 604 97 20 176,836
Dividend receivable - 389 399 - - 879 280 39 8 5,318
Receivable for sale of 91,262 12,951 94,677 161,210 - 363,040 84,683 12,114 1,670 1,421,420
investments
Unit collection a/c - - 212,222 179,951 63,788 4,119 - - 23 2,577,208
Other current assets (for 1 - 44 - - 63 20 3 - 646
Investments)
Total 183,675 26,098 308,428 687,118 63,944 370,001 85,587 12,253 1,721 4,183,918

(` in ‘000)
Linked Life Funds
Particulars Money Market Multi Cap Multi Cap Multiplier Fund Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund II Fund III Fund IV Shield Balanced Fund
Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 26/10/09
LMoneyMkt 105 LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw 105 LOpport 105 LPinnacle 105
Accrued interest 338,852 115,147 28,144 11 3 - 1 37,725 - 129,665
Cash & Bank balance 35,513 365 3,140 261 175 18 71 20 337 404
Dividend receivable - 4,053 13,768 133 88 4 33 1,868 762 -
Receivable for sale of - 178,583 309,817 - - - - 1,220 48,445 29,281
investments
Unit collection a/c 452,922 185,873 1,195,435 - - - - - 49,138 -
Other current assets (for - 35 188 - 3 - 1 - 16 7
Investments)
Total 827,287 484,056 1,550,492 405 269 22 106 40,833 98,698 159,357

172
schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Pinnacle Fund II Preserver Fund Preserver Preserver Protector Fund Protector Protector Protector Return Return
Fund III Fund IV Fund II Fund III Fund IV Guarantee Fund Guarantee Fund
IX (10 Yrs) VIII (10 Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
Accrued interest 91,975 46,498 2,796 14,580 135,571 64,242 6,126 101,320 11,189 37,583
Cash & Bank balance 234 40 10 10 2 4 9 6 10 10
Dividend receivable - - - - - - - - - -
Receivable for sale of 15,562 - - - 37,750 61,323 6,577 33,785 - -
investments
Unit collection a/c - - - - - - 470 - - -
Other current assets (for 4 - - - - 1 - - - -
Investments)
Total 107,775 46,538 2,806 14,590 173,323 125,570 13,182 135,111 11,199 37,593

(` in ‘000)
Linked Life Funds
Particulars Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Fund Guarantee Fund Fund Builder Fund Guarantee fund
X (10 Yrs) XI (10 Yrs) Fund
Total
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) 105 LRGF(S4) 105 LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee 105 UNCLAIM 105
Accrued interest 62,396 1,917 - - - - 5,327 23 1,218 13,897 4,714,317
Cash & Bank balance 10 10 287 438 24 217 13 12 14 764 229,976
Dividend receivable - - 605 988 34 482 3 1 2 - 48,436
Receivable for sale of - - 53,908 67,180 2,925 42,081 6,651 19 458 - 5,422,653
investments
Unit collection a/c - - - - - - 66 - 39 - 6,467,614
Other current assets (for - - 11 21 1 10 - - - - 1,247
Investments)
Total 62,406 1,927 54,811 68,627 2,984 42,790 12,060 55 1,731 14,661 16,884,243

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Retirement Easy Retirement Easy Retirement Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Balanced Fund Secure Fund SP Balanced Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Fund Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 ERSPBF 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Accrued interest 4,289 45,194 17,445 789 4,161 59,686 56,072 - 47,603 11,571
Cash & Bank balance 377 125 8 14 12 111 102 113 307 33
Dividend receivable - 141 - - 92 3,144 3,144 55 - 813
Receivable for sale of - 28,197 4,938 893 1,547 20,403 18,732 - 69,509 6,390
investments
Unit collection a/c - 87,610 17,784 10,139 - - - 5,582 874 -
Other current assets (for - 3 - - - - - 2 16 1
Investments)
Total 4,666 161,270 40,175 11,835 5,812 83,344 78,050 5,752 118,309 18,808

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Flexi Pension Growth Pension Income Pension Pension Pension Money Pension Multi Cap
Balanced Fund II Growth Fund Growth Fund II Fund Fund Maximiser Fund Maximiser Fund II Market Fund Balanced Fund
ULIF 035 20/03/07 ULIF 029 20/03/07 ULIF 030 20/03/07 ULIF 127 01/12/11 ULIF 095 11/01/10 ULIF 004 03/05/02 ULIF 013 17/05/04 ULIF 096 11/01/10 ULIF 094 11/01/10
PFlexiBal2 105 PFlexiGro1 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt 105 PMCapBal 105
Accrued interest 8,773 - - - 171,870 - - 14,218 14,053
Cash & Bank balance 29 711 491 31 24 312 592 34 46
Dividend receivable 909 2,626 1,957 10 - 144 274 - 1,166
Receivable for sale of 5,491 106,576 67,113 2,404 34,181 40,049 65,451 - 10,012
investments
Unit collection a/c - - - - 11,924 - - - 1,199
Other current assets (for 1 61 34 - - 8 13 - 2
Investments)
Total 15,203 109,974 69,595 2,445 217,999 40,513 66,330 14,252 26,478

173
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2018

(` in ‘000)
Linked Pension Funds
Particulars Pension Multi Pension Pension Pension Pension Pension Pension Pension Return Pension Return Pension Return
Cap Growth Multiplier Fund Multiplier Opportunities Preserver Fund Protector Fund Protector Fund II Guarantee Fund Guarantee Fund Guarantee Fund
Fund Fund II Fund IX (10 Yrs) VIII X (10 Yrs)
ULIF 091 ULIF 043 ULIF 045 ULIF 092 ULIF 011 ULIF 006 ULIF 017 ULIF 108 ULIF 102 ULIF 113
11/01/10 25/02/08 25/02/08 11/01/10 17/05/04 03/05/02 17/05/04 22/12/10 12/10/10 13/01/11
PMCapGro 105 PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105 PRGF(S3) 105
Accrued interest - - - - 54,686 320,222 106,811 8,393 26,269 9,823
Cash & Bank balance 468 271 132 161 34 60 4 10 10 10
Dividend receivable 2,129 141 66 370 - - - - - -
Receivable for sale of 62,838 - - 23,989 - - 26,666 - - -
investments
Unit collection a/c - - - - - - - - - -
Other current assets (for 37 5 2 7 - - - - - -
Investments)
Total 65,472 417 200 24,527 54,720 320,282 133,481 8,403 26,279 9,833

(` in ‘000)
Linked Pension Funds
Particulars Pension Return Guarantee Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension Fund
Fund XI (10 Yrs)
Total
ULIF 122 19/04/11 PRGF(S4) ULIF 052 17/03/08 PRICH1 ULIF 053 17/03/08 PRICH2 ULIF 128 01/12/11 PSECURE ULIF 009 17/11/03 PSecPlus
105 105 105 105 105
Accrued interest 2,171 - - 23,617 2,313 1,010,029
Cash & Bank balance 10 643 389 100 11 5,785
Dividend receivable - 1,367 784 - 1 19,333
Receivable for sale of - 116,662 67,384 8,971 888 789,284
investments
Unit collection a/c - - - 6,497 103 141,712
Other current assets (for - 28 18 - - 238
Investments)
Total 2,181 118,700 68,575 39,185 3,316 1,966,381

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Accrued interest 4,354 4,468 - - 6,112 67,332 82,266
Cash & Bank balance 18 23 247 65 10 32 395
Dividend receivable 190 254 1,048 30 - - 1,522
Receivable for sale of 5,834 6,722 21,777 - - - 34,333
investments
Unit collection a/c 2,386 2,297 20,328 2,088 295 2,305 29,699
Other current assets (for - 1 24 1 - - 26
Investments)
Total 12,782 13,765 43,424 2,184 6,417 69,669 148,241

(` in ‘000)
Linked Group Life Funds
Particulars Group Balanced Fund Group Balanced Fund II Group Capital Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Guarantee Short Term
Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
Accrued interest 227,520 258,806 208 165,517 105,105 - 19,488
Cash & Bank balance 290 178 10 1,596 8 12 87
Dividend receivable 9,008 16 - - - 1 7,905
Receivable for sale of 76,969 165,725 - 34,196 22,214 257 14,975
investments
Unit collection a/c 578,124 147,216 1,201 117,994 32,104 290 72,101
Other current assets (for 2 4 - - - - 2
Investments)
Total 891,913 571,945 1,419 319,303 159,431 560 114,558

174
schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2018

(` in ‘000)
Linked Group Life Funds
Particulars Group Growth Fund II Group Leave Encashment Group Leave Encashment Group Short Term Debt Fund Group Short Term Debt
Balance Fund Income Fund Fund III
Total
ULGF 042 30/04/13 G ULGF 013 02/04/08 ULGF 014 02/04/08 ULGF 003 03/04/03 GST ULGF 039 30/04/13
Growth2 105 GLEBal 105 GLEIncome 105 Debt 105 GSTDebt3 105
Accrued interest 1,758 17,526 2,956 34,856 3,084 836,824
Cash & Bank balance 18 19 10 61 10 2,299
Dividend receivable 1 380 - - - 17,311
Receivable for sale of 1,430 7,082 995 - - 323,843
investments
Unit collection a/c 3,074 10,486 1,091 77,803 37,874 1,079,358
Other current assets (for - - - - - 8
Investments)
Total 6,281 35,493 5,052 112,720 40,968 2,259,643

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Fund II Balanced Fund Fund II Fund III Growth Fund Growth Fund II Growth Fund III Short Term Debt
Fund III Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105
Accrued interest 1,506 35,468 50,552 359 16,376 29,800 410 2,433 4,574 45,123
Cash & Bank balance 11 28 103 10 9 31 11 15 14 68
Dividend receivable 38 752 13 - - - 22 48 - -
Receivable for sale of 657 13,229 23,034 258 4,811 7,832 372 1,610 1,135 -
investments
Unit collection a/c 864 18,084 31,580 317 5,226 8,167 439 2,118 1,475 45,717
Other current assets (for - - 1 - - - - - - -
Investments)
Total 3,076 67,561 105,283 944 26,422 45,830 1,254 6,224 7,198 90,908

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group SA Group SA Capital Group SA Debt Group SA Growth Group SA Short Group Short Term
Guarantee Short Balanced Fund Guarantee Short Fund Fund Term Debt Fund Debt Fund II
Term Debt Fund III Term Debt Fund Grand Total
Total
ULGF 047 27/08/13 ULGF 051 ULGF 052 ULGF 053 ULGF 054 30/10/03 ULGF 055 24/02/04 ULGF 046 27/08/13
GCGSTDebt3 105 03/04/03 GSBLN 03/04/03 GSDBT 03/04/03 GSSTD GSGF 105 GSCGSTD 105 GSTDebt2 105
105 105 105
Accrued interest 13,470 155,239 808 132,078 37,741 19,145 137 545,219 7,188,655
Cash & Bank balance 54 186 10 1,612 13,056 10 10 15,238 253,693
Dividend receivable - 29 - - 66 - - 968 87,570
Receivable for sale of - 51,555 - 38,278 31,918 - - 174,689 6,744,802
investments
Unit collection a/c 10,221 65,145 804 - 11,164 14,136 33 215,490 7,933,873
Other current assets (for - 2 - - 5 - - 8 1,527
Investments)
Total 23,745 272,156 1,622 171,968 93,950 33,291 180 951,612 22,210,120

175
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Active Asset Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund II Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 AAABF 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
105 LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105
Payable for purchase of investments 1,836 - 203,243 76,055 5,018 21,822 70,174 101,522 3,333 190,775
Other current liabilities 317 - 403 67 10 20 254 72 513 495
Unit payable a/c - - 7,435 6,289 189 - - - 1,441,721 4,362
Total 2,153 - 211,081 82,411 5,217 21,842 70,428 101,594 1,445,567 195,632

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B

ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Payable for purchase of investments 13,467 17,843 1,400 6,458 53,943 68,968 2,650 53,185 8,691 2,331,387
Other current liabilities 33 18 3 6 414 335 36 207 1,536 1,654
Unit payable a/c 2,487 476 76 227 89,826 42,997 2,755 23,829 75,498 -
Total 15,987 18,337 1,479 6,691 144,183 112,300 5,441 77,221 85,725 2,333,041

(` in ‘000)
Linked Life Funds
Particulars Invest Shield Invest Shield Life Growth Life Secure Maximise India Maximiser Fund Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund Fund II Fund III Fund IV Fund V

ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105
Payable for purchase of investments 144,484 20,567 213,059 3,435 404 146,191 44,704 6,562 888 2,875,439
Other current liabilities 99 17 704 587 70 1,448 297 65 5 6,443
Unit payable a/c 5,707 1,461 - - - - 12,615 5,001 - -
Total 150,290 22,045 213,763 4,022 474 147,639 57,616 11,628 893 2,881,882

(` in ‘000)
Linked Life Funds
Particulars Money Market Multi Cap Multi Cap Multiplier Fund Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund II Fund III Fund IV Shield Balanced Fund
Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 26/10/09
LMoneyMkt 105 LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw 105 LOpport 105 LPinnacle 105
Payable for purchase of investments 2,622 329,314 1,097,494 668 13,591 958 4,934 108 62,631 29,577
Other current liabilities 470 386 2,108 120 55 4 20 19 165 218
Unit payable a/c - - - 94,777 13,965 132 12,377 9,992 - 7,113
Total 3,092 329,700 1,099,602 95,565 27,611 1,094 17,331 10,119 62,796 36,908

(` in ‘000)
Linked Life Funds
Particulars Pinnacle Fund II Preserver Fund Preserver Preserver Protector Fund Protector Protector Protector Return Return
Fund III Fund IV Fund II Fund III Fund IV Guarantee Fund Guarantee Fund
IX (10 Yrs) VIII (10 Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
Payable for purchase of investments 15,852 306 17 48 897 97,701 10,597 430 17 33
Other current liabilities 140 53 3 8 154 40 8 71 3 6
Unit payable a/c 6,546 34,404 790 8,087 27,722 7,749 - 1,466 5 9
Total 22,538 34,763 810 8,143 28,773 105,490 10,605 1,967 25 48

176
schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2018

(` in ‘000)
Linked Life Funds
Particulars Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Guarantee Fund Fund Builder Fund Guarantee fund
Fund X (10 Yrs) XI (10 Yrs) Fund
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) 105 LRGF(S4) 105 LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Payable for purchase of investments 56 2 24,113 81,055 1,144 23,076 10,594 4 20 266 8,495,628
Other current liabilities 10 - 205 232 12 115 9 1 4 32 20,799
Unit payable a/c 24 1 232,466 55,759 421 60,673 - 3 - 71,108 2,368,540
Total 90 3 256,784 137,046 1,577 83,864 10,603 8 24 71,406 10,884,967

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Retirement Easy Retirement Easy Retirement Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Balanced Fund Secure Fund SP Balanced Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Fund Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 ERSPBF 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Payable for purchase of investments 80 10,910 122 354 36 1,064 447 8,278 68,362 4,116
Other current liabilities 13 151 21 4 6 188 78 31 176 41
Unit payable a/c 79,684 - - - 114 7,786 11,580 - - 6,186
Total 79,777 11,061 143 358 156 9,038 12,105 8,309 68,538 10,343

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Flexi Pension Growth Pension Income Pension Pension Pension Money Pension Multi Pension Multi
Balanced Fund II Growth Fund Growth Fund II Fund Fund Maximiser Fund Maximiser Market Fund Cap Balanced Cap Growth
Fund II Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 105 PFlexiGro1 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt 105 PMCapBal 105 PMCapGro 105
Payable for purchase of investments 2,820 100,565 68,087 485 959 7,489 13,645 146 7,897 64,079
Other current liabilities 16 692 317 10 147 228 292 26 40 280
Unit payable a/c 4,737 330,637 41,708 6,128 - 4,313 6,789 25,331 - 16,285
Total 7,573 431,894 110,112 6,623 1,106 12,030 20,726 25,503 7,937 80,644

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Pension Multiplier Pension Pension Preserver Pension Protector Pension Protector Pension Return Pension Return
Fund Fund II Opportunities Fund Fund Fund Fund II Guarantee Fund IX Guarantee Fund VIII
(10 Yrs)
ULIF 043 25/02/08 ULIF 045 25/02/08 ULIF 092 11/01/10 ULIF 011 17/05/04 ULIF 006 03/05/02 ULIF 017 17/05/04 ULIF 108 22/12/10 ULIF 102 12/10/10
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105

Payable for purchase of investments 20,742 9,716 28,263 356 85,497 458 6 23
Other current liabilities 130 41 73 64 356 55 1 4
Unit payable a/c 35,485 13,171 7,116 47,097 56,640 12,148 - -
Total 56,357 22,928 35,452 47,517 142,493 12,661 7 27

(` in ‘000)
Linked Pension Funds
Particulars Pension Return Pension Return Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension
Guarantee Fund X Guarantee Fund XI Fund
(10 Yrs) (10 Yrs)
Total
ULIF 113 13/01/11 ULIF 122 19/04/11 ULIF 052 17/03/08 ULIF 053 17/03/08 ULIF 128 01/12/11 ULIF 009 17/11/03
PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105 PSECURE 105 PSecPlus 105

Payable for purchase of investments 13 2 76,800 58,956 197 20 640,990

Other current liabilities 2 - 480 194 34 3 4,194
Unit payable a/c - - 179,819 78,902 - - 971,656
Total 15 2 257,099 138,052 231 23 1,616,840

177
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2018

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105

Payable for purchase of investments 9,349 11,761 49,675 4,543 6 13,143 88,477
Other current liabilities 8 11 165 19 1 27 231
Unit payable a/c - - - - - - -
Total 9,357 11,772 49,840 4,562 7 13,170 88,708

(` in ‘000)
Linked Group Life Funds
Particulars Group Group Group Group Debt Group Debt Group Group Group Group Group Group Short Group Short
Balanced Balanced Capital Fund Fund II Equity Growth Growth Leave Leave Term Debt Term Debt
Fund Fund II Guarantee Fund II Fund Fund II Encashment Encashment Fund Fund III
Short Term Balance Income
Debt Fund Fund Fund Total
ULGF 001 ULGF 041 ULGF 005 ULGF 002 ULGF 040 ULGF 043 ULGF 004 ULGF 042 ULGF 013 ULGF 014 ULGF 003 ULGF 039
03/04/03 30/04/13 24/02/04 03/04/03 30/04/13 30/04/13 30/10/03 30/04/13 02/04/08 02/04/08 03/04/03 30/04/13
GBalancer GBalancer2 GCGSTDebt1 GDebt 105 GDebt2 105 GEquity2 GGrowth GGrowth2 GLEBal 105 GLEIncome GSTDebt GSTDebt3
105 105 105 105 105 105 105 105 105
Payable for purchase of investments 3,898 13,027 4 912 523 211 1,873 703 1,058 21 190 46 22,466
Other current liabilities 285 327 1 139 81 1 55 6 27 3 33 8 966
Unit payable a/c - - - - - - - - - - - - -
Total 4,183 13,354 5 1,051 604 212 1,928 709 1,085 24 223 54 23,432

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Fund II Balanced Fund Fund II Fund III Growth Fund Growth Fund II Growth Fund III Short Term Debt
Fund III Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105
Payable for purchase of investments 105 2,083 3,472 7 120 178 108 505 359 770
Other current liabilities 4 65 93 1 21 30 3 10 5 135
Unit payable a/c - - - - - - - - - -
Total 109 2,148 3,565 8 141 208 111 515 364 905

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group SA Group SA Capital Group SA Debt Group SA Growth Group SA Short Group Short Term
Guarantee Short Balanced Fund Guarantee Short Fund Fund Term Debt Fund Debt Fund II
Term Debt Fund III Term Debt Fund Grand Total
Total
ULGF 047 27/08/13 ULGF 051 ULGF 052 ULGF 053 ULGF 054 30/10/03 ULGF 055 24/02/04 ULGF 046 27/08/13
GCGSTDebt3 105 03/04/03 GSBLN 03/04/03 GSDBT 03/04/03 GSSTD GSGF 105 GSCGSTD 105 GSTDebt2 105
105 105 105
Payable for purchase of investments 176 7,464 13 816 14,516 243 2 30,937 9,278,498
Other current liabilities 31 185 2 140 119 43 - 887 27,077
Unit payable a/c - - - 10,267 - - - 10,267 3,350,463
Total 207 7,649 15 11,223 14,635 286 2 42,091 12,656,038

178
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv LBalancer1 LBalancer2 LBalancer3 LBalancer4 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE LFlexiBal1 105
105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 10,809 (5,485,553) (1,424,593) (139,654) 534,255 6,102,584 1,441,229 31,467,113 15,221,673 101,569
Revenue account 2,841 15,335,903 5,035,594 386,484 528,690 1,316,146 1,385,810 6,923,238 7,781,274 903,583
Total 13,650 9,850,350 3,611,001 246,830 1,062,945 7,418,730 2,827,039 38,390,351 23,002,947 1,005,152
Application of funds
Investments F-2 12,597 9,563,148 3,506,658 235,549 1,030,538 7,429,122 2,695,775 41,141,435 22,827,843 1,001,977
Current assets F-3 2,053 366,243 129,521 12,639 38,251 69,360 156,970 414,485 1,089,542 26,437
Less: Current liabilities and provisions F-4 1,000 79,041 25,178 1,358 5,844 79,752 25,706 3,165,569 914,438 23,262
Net current assets 1,053 287,202 104,343 11,281 32,407 (10,392) 131,264 (2,751,084) 175,104 3,175
Total 13,650 9,850,350 3,611,001 246,830 1,062,945 7,418,730 2,827,039 38,390,351 23,002,947 1,005,152
(a) Net asset as per balance sheet 13,650 9,850,350 3,611,001 246,830 1,062,945 7,418,730 2,827,039 38,390,351 23,002,947 1,005,152
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 753 168,290 83,699 9,110 40,916 412,181 101,755 2,398,717 1,256,844 41,048
(in '000)
(c) NAV per unit (a)/(b) (`) 18.1232 58.5320 43.1425 27.0932 25.9788 17.9987 27.7828 16.0045 18.3021 24.4876

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 LMaximis2 LMaximis3 LMaximis4 LMaximis5 LMoneyMkt LMCapBal 105 LMCapGro 105
105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 377,237 2,801 (27,904,312) (5,251,499) (1,276,053) 35,917 155,160,956 24,192,760 8,286,125 32,035,158
Revenue account 528,161 54,759 63,631,808 16,532,428 2,893,117 515,214 12,964,905 2,527,525 1,843,028 13,010,224
Total 905,398 57,560 35,727,496 11,280,929 1,617,064 551,131 168,125,861 26,720,285 10,129,153 45,045,382
Application of funds
Investments F-2 883,356 56,634 35,763,995 11,367,020 1,624,159 553,990 168,742,363 26,037,668 9,868,607 44,828,029
Current assets F-3 25,485 12,019 307,223 21,514 5,875 1,045 1,008,098 683,231 299,264 219,255
Less: Current liabilities and provisions F-4 3,443 11,093 343,722 107,605 12,970 3,904 1,624,600 614 38,718 1,902
Net current assets 22,042 926 (36,499) (86,091) (7,095) (2,859) (616,502) 682,617 260,546 217,353
Total 905,398 57,560 35,727,496 11,280,929 1,617,064 551,131 168,125,861 26,720,285 10,129,153 45,045,382
(a) Net asset as per balance sheet 905,398 57,560 35,727,496 11,280,929 1,617,064 551,131 168,125,861 26,720,285 10,129,153 45,045,382
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 32,159 2,372 287,116 153,229 51,023 20,853 7,932,707 1,502,839 497,427 1,975,139
(in '000)
(c) NAV per unit (a)/(b) (`) 28.1535 24.2644 124.4356 73.6213 31.6930 26.4291 21.1940 17.7799 20.3631 22.8062

179
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Multiplier Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund Fund II Fund III Fund IV Guarantee Guarantee Guarantee Guarantee Guarantee
Fund VIII (10 Fund IX (10 Fund X (10 Fund XI (5 Yrs) Fund XI (10
Yrs) Yrs) Yrs) Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (998,581) 805,495 (10,355) 287,078 92,771 54,012 193,056 (432,697) 9,086 632,764
Revenue account 8,575,049 1,243,086 117,252 616,642 132,578 68,756 220,084 432,697 7,044 4,853,948
Total 7,576,468 2,048,581 106,897 903,720 225,349 122,768 413,140 - 16,130 5,486,712
Application of funds
Investments F-2 7,587,222 2,053,544 107,190 905,236 186,318 102,728 354,419 - 14,207 5,366,644
Current assets F-3 42,206 11,446 547 5,433 39,046 20,051 58,824 - 1,925 124,321
Less: Current liabilities and provisions F-4 52,960 16,409 840 6,949 15 11 103 - 2 4,253
Net current assets (10,754) (4,963) (293) (1,516) 39,031 20,040 58,721 - 1,923 120,068
Total 7,576,468 2,048,581 106,897 903,720 225,349 122,768 413,140 - 16,130 5,486,712
(a) Net asset as per balance sheet 7,576,468 2,048,581 106,897 903,720 225,349 122,768 413,140 - 16,130 5,486,712
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 438,451 100,149 5,621 44,448 13,791 7,505 25,309 - 1,008 251,859
(in '000)
(c) NAV per unit (a)/(b) (`) 17.2801 20.4553 19.0185 20.3323 16.3402 16.3585 16.3237 14.6690 16.0010 21.7849

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105 LInvCash 105 LInvShld 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 165,210 (4,762,484) 4,295,684 (99,450) 1,884,396 43,537,347 50,843,011 3,222,862 (399,446) 13,445,848
Revenue account 176,327 21,626,920 8,296,240 944,339 7,809,746 10,471,858 5,721,019 1,785,504 1,136,416 758,588
Total 341,537 16,864,436 12,591,924 844,889 9,694,142 54,009,205 56,564,030 5,008,366 736,970 14,204,436
Application of funds
Investments F-2 330,673 17,208,240 12,662,614 844,494 9,691,823 52,796,588 53,059,217 4,792,910 715,818 14,240,787
Current assets F-3 12,183 111,936 1,334 1,043 20,560 1,873,079 4,021,440 263,211 27,054 103,085
Less: Current liabilities and provisions F-4 1,319 455,740 72,024 648 18,241 660,462 516,627 47,755 5,902 139,436
Net current assets 10,864 (343,804) (70,690) 395 2,319 1,212,617 3,504,813 215,456 21,152 (36,351)
Total 341,537 16,864,436 12,591,924 844,889 9,694,142 54,009,205 56,564,030 5,008,366 736,970 14,204,436
(a) Net asset as per balance sheet 341,537 16,864,436 12,591,924 844,889 9,694,142 54,009,205 56,564,030 5,008,366 736,970 14,204,436
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 13,772 586,417 410,915 29,072 369,158 3,539,485 2,991,869 188,918 23,031 939,185
(in '000)
(c) NAV per unit (a)/(b) (`) 24.7988 28.7584 30.6436 29.0620 26.2602 15.2591 18.9059 26.5108 31.9984 15.1242

180
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Life Secure Maximise New Invest Opportunities Pinnacle Fund Pinnacle Preserver Preserver Preserver Protector
Fund India Fund Shield Fund Fund II Fund Fund III Fund IV Fund
Balanced Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 11,517,988 1,730,006 (362,596) 3,626,936 5,365,300 4,033,441 1,480,340 61,757 469,389 (42,592)
Revenue account 582,211 37,785 1,599,328 2,160,882 3,536,216 1,936,678 2,992,704 154,836 198,700 6,607,421
Total 12,100,199 1,767,791 1,236,732 5,787,818 8,901,516 5,970,119 4,473,044 216,593 668,089 6,564,829
Application of funds
Investments F-2 11,408,711 1,783,191 1,245,276 5,647,446 8,748,242 5,867,176 4,427,585 206,519 645,954 5,951,067
Current assets F-3 801,019 20,602 30,298 144,484 230,595 170,529 91,579 10,079 22,151 721,829
Less: Current liabilities and provisions F-4 109,531 36,002 38,842 4,112 77,321 67,586 46,120 5 16 108,067
Net current assets 691,488 (15,400) (8,544) 140,372 153,274 102,943 45,459 10,074 22,135 613,762
Total 12,100,199 1,767,791 1,236,732 5,787,818 8,901,516 5,970,119 4,473,044 216,593 668,089 6,564,829
(a) Net asset as per balance sheet 12,100,199 1,767,791 1,236,732 5,787,818 8,901,516 5,970,119 4,473,044 216,593 668,089 6,564,829
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 879,991 160,783 44,422 276,910 508,691 407,477 165,767 8,976 30,753 191,456
(in '000)
(c) NAV per unit (a)/(b) (`) 13.7504 10.9949 27.8406 20.9015 17.4989 14.6514 26.9840 24.1294 21.7246 34.2889

(` in ‘000)
Linked Life Funds
Particulars Schedule Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 LProtect3 LProtect4 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 313,028 (27,712) 3,306,460 4,160,274 (86,896) 1,896,961 98,299 15,679 70,911 6,199,856 390,080,958
Revenue account 2,877,392 341,219 1,807,730 3,830,379 387,153 2,175,814 240,611 13,439 42,170 390,569 261,008,062
Total 3,190,420 313,507 5,114,190 7,990,653 300,257 4,072,775 338,910 29,118 113,081 6,590,425 651,089,020
Application of funds
Investments F-2 3,036,343 288,482 4,373,721 7,817,518 293,715 3,984,073 326,173 28,645 109,329 - 638,380,301
Current assets F-3 188,879 27,947 843,587 180,092 6,909 91,805 15,262 476 3,759 6,590,425 21,819,540*
Less: Current liabilities and provisions F-4 34,802 2,922 103,118 6,957 367 3,103 2,525 3 7 - 9,110,821
Net current assets 154,077 25,025 740,469 173,135 6,542 88,702 12,737 473 3,752 6,590,425 12,708,719
Total 3,190,420 313,507 5,114,190 7,990,653 300,257 4,072,775 338,910 29,118 113,081 6,590,425 651,089,020
(a) Net asset as per balance sheet 3,190,420 313,507 5,114,190 7,990,653 300,257 4,072,775 338,910 29,118 113,081 6,590,425 651,089,020
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 111,265 12,732 217,437 339,848 13,617 173,074 12,414 1,502 6,264 603,366
(in '000)
(c) NAV per unit (a)/(b) (`) 28.6741 24.6244 23.5204 23.5125 22.0497 23.5320 27.3014 19.3805 18.0513 10.9228

*includes ` 6,590,425 thousands of assets pertaining to unclaimed amount of policyholders disclosed in ‘Schedule 12 Advance and other assets’ of the financial statements.

181
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement Retirement Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund SP Balanced Secure Fund Fund II Fund
Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1 105
105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 917,181 2,845,629 78,087 443,604 28,057 456,814 (1,907,098) 791,016 5,073,844 439,221
Revenue account 103,043 318,441 9,449 64,676 255,538 4,293,039 6,292,281 568,274 3,206,864 592,519
Total 1,020,224 3,164,070 87,536 508,280 283,595 4,749,853 4,385,183 1,359,290 8,280,708 1,031,740
Application of funds
Investments F-2 1,014,363 3,102,896 84,650 483,471 272,583 4,587,184 4,201,341 1,347,155 8,259,290 1,002,603
Current assets F-3 5,877 117,596 3,230 24,835 11,038 165,336 191,529 17,051 285,130 29,215
Less: Current liabilities and provisions F-4 16 56,422 344 26 26 2,667 7,687 4,916 263,712 78
Net current assets 5,861 61,174 2,886 24,809 11,012 162,669 183,842 12,135 21,418 29,137
Total 1,020,224 3,164,070 87,536 508,280 283,595 4,749,853 4,385,183 1,359,290 8,280,708 1,031,740
(a) Net asset as per balance sheet 1,020,224 3,164,070 87,536 508,280 283,595 4,749,853 4,385,183 1,359,290 8,280,708 1,031,740
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 79,268 216,353 6,416 35,567 8,935 97,062 111,022 78,229 459,119 41,806
(in '000)
(c) NAV per unit (a)/(b) (`) 12.8706 14.6246 13.6435 14.2906 31.7414 48.9365 39.4983 17.3758 18.0361 24.6796

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Guarantee Guarantee Guarantee Fund Fund II
Fund II Fund II Fund VIII Fund IX (10 Fund X (10 Fund XI (10
Yrs) Yrs) Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 (82,321) 4,272,446 5,185,401 (10,489) 72,504 14,250 33,583 7,866 1,766,830 (2,363,781)
Revenue account 1,042,325 16,712,338 7,712,776 4,595,428 76,388 23,677 52,494 5,880 11,688,259 10,109,559
Total 960,004 20,984,784 12,898,177 4,584,939 148,892 37,927 86,077 13,746 13,455,089 7,745,778
Application of funds
Investments F-2 937,480 20,972,462 12,495,272 4,338,166 128,829 30,916 78,268 11,314 13,153,940 7,571,366
Current assets F-3 24,779 59,510 403,679 254,386 20,070 7,013 7,815 2,433 312,085 183,723
Less: Current liabilities and provisions F-4 2,255 47,188 774 7,613 7 2 6 1 10,936 9,311
Net current assets 22,524 12,322 402,905 246,773 20,063 7,011 7,809 2,432 301,149 174,412
Total 960,004 20,984,784 12,898,177 4,584,939 148,892 37,927 86,077 13,746 13,455,089 7,745,778
(a) Net asset as per balance sheet 960,004 20,984,784 12,898,177 4,584,939 148,892 37,927 86,077 13,746 13,455,089 7,745,778
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 35,005 732,793 425,165 164,118 9,102 2,331 5,315 861 539,009 291,565
(in '000)
(c) NAV per unit (a)/(b) (`) 27.4246 28.6367 30.3369 27.9369 16.3588 16.2685 16.1943 15.9641 24.9626 26.5662

182
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Secure Plus Pension Flexi Pension Pension Pension Pension Pension Pension Multi Pension Multi
Secure Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Money Market Cap Balanced Cap Growth
Fund Fund II Fund Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 PGROWTH 105 PIncome 105 PMaximis1 PMaximis2 PMoneyMkt PMCapBal 105 PMCapGro
105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 968,252 37,249 (5,812,836) 293,162 3,665,406 (1,267,902) (10,831,516) 1,226,059 740,409 4,728,344
Revenue account 156,368 103,399 22,129,696 184,995 1,988,710 7,028,368 22,798,575 1,011,221 933,326 7,306,065
Total 1,124,620 140,648 16,316,860 478,157 5,654,116 5,760,466 11,967,059 2,237,280 1,673,735 12,034,409
Application of funds
Investments F-2 1,073,468 134,176 16,358,951 479,199 5,280,056 5,776,661 11,962,443 2,211,605 1,634,777 12,011,292
Current assets F-3 51,207 6,611 40,274 3,278 374,344 23,908 130,991 30,091 39,722 37,062
Less: Current liabilities and provisions F-4 55 139 82,365 4,320 284 40,103 126,375 4,416 764 13,945
Net current assets 51,152 6,472 (42,091) (1,042) 374,060 (16,195) 4,616 25,675 38,958 23,117
Total 1,124,620 140,648 16,316,860 478,157 5,654,116 5,760,466 11,967,059 2,237,280 1,673,735 12,034,409
(a) Net asset as per balance sheet 1,124,620 140,648 16,316,860 478,157 5,654,116 5,760,466 11,967,059 2,237,280 1,673,735 12,034,409
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 77,038 5,442 517,583 28,509 304,496 45,834 156,208 126,088 85,999 541,623
(in '000)
(c) NAV per unit (a)/(b) (`) 14.5982 25.8455 31.5251 16.7723 18.5688 125.6808 76.6097 17.7439 19.4621 22.2192

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
ULIF 043 25/02/08 PMultip1 ULIF 045 25/02/08 PMultip2 ULIF 092 11/01/10 POpport 105 ULIF 011 17/05/04 PPreserv Total
105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 1,538,515 86,378 959,702 2,593,768 16,987,634
Revenue account 2,602,383 1,765,754 2,262,038 3,333,993 141,328,139
Total 4,140,898 1,852,132 3,221,740 5,927,761 158,315,773
Application of funds
Investments F-2 4,136,898 1,851,101 3,151,171 5,811,384 155,946,731
Current assets F-3 24,166 10,370 74,624 116,515 3,089,493
Less: Current liabilities and provisions F-4 20,166 9,339 4,055 138 720,451
Net current assets 4,000 1,031 70,569 116,377 2,369,042
Total 4,140,898 1,852,132 3,221,740 5,927,761 158,315,773
(a) Net asset as per balance sheet 4,140,898 1,852,132 3,221,740 5,927,761 158,315,773
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 243,641 99,750 156,043 221,769
(in '000)
(c) NAV per unit (a)/(b) (`) 16.9959 18.5677 20.6465 26.7294

183
 schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Health Funds
Particulars Schedule Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Health Preserver Health Protector Fund
Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 521,142 726,294 7,146,214 838,739 97,432 2,402,554 11,732,375
Revenue account (142,715) (209,357) (1,924,840) (242,081) (27,977) (734,534) (3,281,504)
Total 378,427 516,937 5,221,374 596,658 69,455 1,668,020 8,450,871
Application of funds
Investments F-2 366,058 504,853 5,205,765 598,061 63,775 1,585,698 8,324,210
Current assets F-3 14,488 14,004 15,854 5,353 5,682 82,371 137,752
Less: Current liabilities and provisions F-4 2,119 1,920 245 6,756 2 49 11,091
Net current assets 12,369 12,084 15,609 (1,403) 5,680 82,322 126,661
Total 378,427 516,937 5,221,374 596,658 69,455 1,668,020 8,450,871
(a) Net asset as per balance sheet 378,427 516,937 5,221,374 596,658 69,455 1,668,020 8,450,871
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 14,556 17,090 138,854 17,306 3,620 75,259
(in '000)
(c) NAV per unit (a)/(b) (`) 25.9981 30.2486 37.6034 34.4761 19.1876 22.1637

(` in ‘000)
Linked Group Funds
Particulars Schedule Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Debt Fund Debt Fund II Debt Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 5,369,630 10,373,551 (12,111) 851,611 2,173,782 10,895 178,751 740,601 24,699 158,530
Revenue account 12,807,811 1,349,786 114,124 1,247,485 297,761 12,233 748,177 72,525 22,879 17,549
Total 18,177,441 11,723,337 102,013 2,099,096 2,471,543 23,128 926,928 813,126 47,578 176,079
Application of funds
Investments F-2 17,157,414 11,300,488 96,981 1,985,544 2,352,892 21,731 875,912 766,649 45,963 161,660
Current assets F-3 1,094,947 490,629 5,139 115,728 121,195 1,398 51,071 46,518 1,726 18,873
Less: Current liabilities and provisions F-4 74,920 67,780 107 2,176 2,544 1 55 41 111 4,454
Net current assets 1,020,027 422,849 5,032 113,552 118,651 1,397 51,016 46,477 1,615 14,419
Total 18,177,441 11,723,337 102,013 2,099,096 2,471,543 23,128 926,928 813,126 47,578 176,079
(a) Net asset as per balance sheet 18,177,441 11,723,337 102,013 2,099,096 2,471,543 23,128 926,928 813,126 47,578 176,079
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 462,713 847,913 3,947 87,646 177,478 729 36,063 57,874 1,969 12,234
(in '000)
(c) NAV per unit (a)/(b) (`) 39.2845 13.8261 25.8463 23.9498 13.9260 31.7059 25.7031 14.0500 24.1595 14.3931

184
schedules
forming part of the financial statements Continued
3.13 FUND BALANCE SHEET AS AT MARCH 31, 2017

Form A-BS(UL)
(` in ‘000)
Linked Group Funds
Particulars Schedule Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Term Debt Guarantee Guarantee Guarantee Guarantee Guarantee
Balance Fund Income Fund Short Term Fund - S5 Fund Growth Fund II Growth Short Term Short Term Short Term
Fund Fund III Debt Fund Debt Fund II Debt Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 02/04/08 26/02/10 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
GLEBal 105 GLEIncome GLEST 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 419,069 60,299 (185,598) (54,571) (714,467) 169,652 66,887 13,346 2,371,764 880,310
Revenue account 570,722 71,094 185,598 54,571 4,005,700 63,613 7,054 109,908 2,155,520 146,413
Total 989,791 131,393 - - 3,291,233 233,265 73,941 123,254 4,527,284 1,026,723
Application of funds
Investments F-2 933,652 124,791 - - 3,180,345 225,050 69,966 121,130 4,392,748 1,004,961
Current assets F-3 57,222 6,608 - - 111,021 8,744 4,901 2,129 134,740 21,807
Less: Current liabilities and provisions F-4 1,083 6 - - 133 529 926 5 204 45
Net current assets 56,139 6,602 - - 110,888 8,215 3,975 2,124 134,536 21,762
Total 989,791 131,393 - - 3,291,233 233,265 73,941 123,254 4,527,284 1,026,723
(a) Net asset as per balance sheet 989,791 131,393 - - 3,291,233 233,265 73,941 123,254 4,527,284 1,026,723
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 43,655 6,405 - - 125,194 10,007 6,016 4,878 212,046 80,842
(in '000)
(c) NAV per unit (a)/(b) (`) 22.6730 20.5127 20.4322 14.3750 26.2893 23.3103 12.2898 25.2692 21.3505 12.7004

(` in ‘000)
Linked Group Funds
Particulars Schedule Group Debt Fund Group Debt Fund II Group Equity Group Growth Group Short Term Group Short Term
Fund II Fund Debt Fund II Debt Fund III Grand Total*
Total
ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
Sources of funds
Policyholders' funds
Policyholder contribution F-1 3,149,333 2,086,962 19,270 461,569 (87,499) 341,901 28,868,166 447,669,133
Revenue account 7,985,311 456,098 4,254 6,000,815 101,012 42,033 38,650,046 437,704,743
Total 11,134,644 2,543,060 23,524 6,462,384 13,513 383,934 67,518,212 885,373,876
Application of funds
Investments F-2 10,430,207 2,317,721 24,093 6,256,728 13,413 375,801 64,235,840 866,887,082
Current assets F-3 704,975 225,457 221 227,760 101 8,148 3,461,058 28,507,843
Less: Current liabilities and provisions F-4 538 118 790 22,104 1 15 178,686 10,021,049
Net current assets 704,437 225,339 (569) 205,656 100 8,133 3,282,372 18,486,794
Total 11,134,644 2,543,060 23,524 6,462,384 13,513 383,934 67,518,212 885,373,876
(a) Net asset as per balance sheet 11,134,644 2,543,060 23,524 6,462,384 13,513 383,934 67,518,212 885,373,876
(total assets less current
liabilities and provisions) (`
'000)
(b) Number of Units outstanding 367,635 175,207 1,992 105,891 1,133 31,444
(in '000)
(c) NAV per unit (a)/(b) (`) 30.2872 14.5146 11.8113 61.0288 11.9247 12.2101

*includes ` 6,590,425 thousands of assets pertaining to unclaimed amount of policyholders disclosed in ‘Schedule 12 Advance and other assets’ of the financial statements.

185
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105 LFlexiBal1 105
Opening balance 11,415 (3,363,261) (924,155) (119,839) 615,260 4,735,436 1,522,857 28,130,069 21,877,334 322,626
Add: Additions during the year* 2,346 324,200 129,781 11,295 55,034 2,446,430 141,648 25,734,575 2,679,138 64,226
Less: Deductions during the year** 2,952 2,446,492 630,219 31,110 136,039 1,079,282 223,276 22,397,531 9,334,799 285,283
Closing balance 10,809 (5,485,553) (1,424,593) (139,654) 534,255 6,102,584 1,441,229 31,467,113 15,221,673 101,569
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt LMCapBal 105 LMCapGro 105
105
Opening balance 422,314 (564) (14,065,818) (2,971,186) (1,052,380) 102,340 89,672,778 19,416,969 5,442,834 25,057,411
Add: Additions during the year* 65,442 7,294 1,287,107 336,073 9,157 22,254 77,526,040 19,591,185 3,777,694 14,973,736
Less: Deductions during the year** 110,519 3,929 15,125,601 2,616,386 232,830 88,677 12,037,862 14,815,394 934,403 7,995,989
Closing balance 377,237 2,801 (27,904,312) (5,251,499) (1,276,053) 35,917 155,160,956 24,192,760 8,286,125 32,035,158
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Multiplier Fund Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund II Fund III Fund IV Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund
VIII (10 Yrs) IX (10 Yrs) X (10 Yrs) XI (5 Yrs) XI (10 Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Opening balance (100,136) 982,559 16,972 383,093 147,573 97,548 368,415 1,060,215 19,659 1,327,218
Add: Additions during the year* 274,572 93,427 340 42,347 0 0 0 0 0 215,757
Less: Deductions during the year** 1,173,017 270,491 27,667 138,362 54,802 43,536 175,359 1,492,912 10,573 910,211
Closing balance (998,581) 805,495 (10,355) 287,078 92,771 54,012 193,056 (432,697) 9,086 632,764
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105 LInvCash 105 LInvShld 105 105
Opening balance 176,813 (263,353) 5,315,163 5,637 3,493,683 47,482,773 34,297,264 3,899,545 (199,061) 8,063,107
Add: Additions during the year* 26,080 679,371 605,928 3,483 467,935 5,485,567 42,554,087 213,631 37,780 6,228,114
Less: Deductions during the year** 37,683 5,178,502 1,625,407 108,570 2,077,222 9,430,993 26,008,340 890,314 238,165 845,373
Closing balance 165,210 (4,762,484) 4,295,684 (99,450) 1,884,396 43,537,347 50,843,011 3,222,862 (399,446) 13,445,848
* Represents unit creation
** Represents unit cancellations

186
schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Life Secure Maximise India New Invest Opportunities Pinnacle Fund Pinnacle Preserver Fund Preserver Preserver Protector Fund
Fund Fund Shield Balanced Fund Fund II Fund III Fund IV
Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105
Opening balance 6,931,731 1,239,462 2,084,195 4,374,563 6,965,681 5,727,755 2,449,272 77,851 495,442 1,114,721
Add: Additions during the year* 5,356,065 699,952 69,620 989,201 0 1,600 846,201 22,980 99,094 687,347
Less: Deductions during the year** 769,808 209,408 2,516,411 1,736,828 1,600,381 1,695,914 1,815,133 39,074 125,147 1,844,660
Closing balance 11,517,988 1,730,006 (362,596) 3,626,936 5,365,300 4,033,441 1,480,340 61,757 469,389 (42,592)
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Life Funds
Particulars Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 105 LProtect3 105 LProtect4 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Opening balance 738,982 (2,034) 2,806,030 4,814,836 (38,539) 2,284,425 118,440 20,333 88,035 - 323,698,308
Add: Additions during the year* 332,314 18,350 1,113,272 398,740 828 202,667 15,654 833 1,504 18,815,628 235,784,924
Less: Deductions during the year** 758,268 44,028 612,842 1,053,302 49,185 590,131 35,795 5,487 18,628 12,615,772 169,402,274
Closing balance 313,028 (27,712) 3,306,460 4,160,274 (86,896) 1,896,961 98,299 15,679 70,911 6,199,856 390,080,958
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement SP Retirement Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Balanced Fund Secure Fund Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Opening balance 510,529 1,884,803 57,322 342,392 66,080 1,141,509 (773,708) 1,318,043 8,345,632 619,844
Add: Additions during the year* 640,164 1,212,854 20,791 178,487 15,106 152,834 159,857 55,165 421,998 33,279
Less: Deductions during the year** 233,512 252,028 26 77,275 53,129 837,529 1,293,247 582,192 3,693,786 213,902
Closing balance 917,181 2,845,629 78,087 443,604 28,057 456,814 (1,907,098) 791,016 5,073,844 439,221
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Fund Fund II
Fund II Fund II VIII IX (10 Yrs) X (10 Yrs) XI (10 Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 105 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
Opening balance 130,899 8,756,397 6,155,378 978,480 98,922 30,473 75,229 8,793 4,442,877 (875,008)
Add: Additions during the year* 39,111 816,466 1,675,814 729,801 - - - - 453,068 244,888
Less: Deductions during the year** 252,331 5,300,417 2,645,791 1,718,770 26,418 16,223 41,646 927 3,129,115 1,733,661
Closing balance (82,321) 4,272,446 5,185,401 (10,489) 72,504 14,250 33,583 7,866 1,766,830 (2,363,781)
* Represents unit creation
** Represents unit cancellations

187
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2017

(` in ‘000)
Linked Pension Funds
Particulars Pension Secure Secure Plus Pension Flexi Pension Pension Pension Pension Pension Money Pension Multi Pension Multi
Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Market Fund Cap Balanced Cap Growth
Fund Fund II Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Opening balance 729,123 39,057 (1,730,263) 357,333 4,925,650 (690,454) (5,006,514) 2,241,686 1,162,224 8,688,897
Add: Additions during the year* 321,096 5,796 535,540 99,901 886,413 150,698 429,678 687,900 89,342 628,413
Less: Deductions during the year** 81,967 7,604 4,618,113 164,072 2,146,657 728,146 6,254,680 1,703,527 511,157 4,588,966
Closing balance 968,252 37,249 (5,812,836) 293,162 3,665,406 (1,267,902) (10,831,516) 1,226,059 740,409 4,728,344
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
Total
ULIF 043 25/02/08 PMultip1 105 ULIF 045 25/02/08 PMultip2 105 ULIF 092 11/01/10 POpport 105 ULIF 011 17/05/04 PPreserv 105
Opening balance 2,315,910 432,335 2,468,376 3,885,759 53,134,005
Add: Additions during the year* 138,880 61,106 126,823 1,248,181 12,259,450
Less: Deductions during the year** 916,275 407,063 1,635,497 2,540,172 48,405,821
Closing balance 1,538,515 86,378 959,702 2,593,768 16,987,634
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Opening balance 467,986 642,149 6,591,179 773,193 89,187 2,128,853 10,692,547
Add: Additions during the year* 60,905 92,251 702,235 75,851 11,743 305,087 1,248,072
Less: Deductions during the year** 7,749 8,106 147,200 10,305 3,498 31,386 208,244
Closing balance 521,142 726,294 7,146,214 838,739 97,432 2,402,554 11,732,375
* Represents unit creation
** Represents unit cancellations

188
schedules
forming part of the financial statements Continued
SCHEDULE: F - 1

POLICYHOLDERS’ CONTRIBUTION AS AT MARCH 31, 2017

(` in ‘000)
Linked Group Funds
Particulars Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Fund Fund II Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 105 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105
Opening balance 6,101,662 8,061,406 (13,536) 972,663 1,990,612 13,261 326,276 311,443 21,945 113,544
Add: Additions during the year* 1,433,703 3,216,265 4,776 115,073 351,518 1,623 26,270 481,432 6,875 54,915
Less: Deductions during the year** 2,165,735 904,120 3,351 236,125 168,348 3,989 173,795 52,274 4,121 9,929
Closing balance 5,369,630 10,373,551 (12,111) 851,611 2,173,782 10,895 178,751 740,601 24,699 158,530
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Term Debt Fund Guarantee Guarantee Guarantee Short Guarantee Guarantee
Balance Fund Income Fund Short Term Fund Fund - S5 Growth Fund II Growth Fund III Term Debt Fund Short Term Debt Short Term Debt
Fund II Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 02/04/08 26/02/10 GLEST 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
GLEBal 105 GLEIncome 105 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105
Opening balance 504,143 59,911 (185,205) 23,131 552,353 126,746 23,980 24,695 2,377,071 750,868
Add: Additions during the year* - 388 - - 394,488 89,248 43,346 3,814 209,239 198,528
Less: Deductions during the year** 85,074 - 393 77,702 1,661,308 46,342 439 15,163 214,546 69,086
Closing balance 419,069 60,299 (185,598) (54,571) (714,467) 169,652 66,887 13,346 2,371,764 880,310
* Represents unit creation
** Represents unit cancellations

(` in ‘000)
Linked Group Funds
Particulars Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund Group Short Term Group Short Term
Debt Fund II Debt Fund III Grand Total
Total
ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
Opening balance 7,055,218 1,702,877 16,734 650,716 (87,458) 387,244 31,882,300 419,407,160
Add: Additions during the year* 885,594 624,355 2,536 362,382 - 119,194 8,625,562 257,918,343
Less: Deductions during the year** 4,791,479 240,270 - 551,529 41 164,537 11,639,696 229,656,035
Closing balance 3,149,333 2,086,962 19,270 461,569 (87,499) 341,901 28,868,166 447,669,468
* Represents unit creation
** Represents unit cancellations

189
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE LFlexiBal1 105
105
Approved investments
Government bonds 7,082 2,461,552 893,306 60,550 262,946 - 1,115,329 16,651,543 184,982 186,135
Corporate bonds 1,508 1,906,465 657,515 31,593 192,663 - 835,026 - - 114,522
Infrastructure bonds - 1,209,197 425,896 19,488 149,282 3,613 621,517 - 810 76,554
Equity - 3,430,091 1,252,551 84,216 360,230 6,318,231 - - 21,469,155 552,785
Money market 472 63,888 40,425 2,733 11,873 - 50,413 24,489,892 - 8,198
Mutual funds 525 62,276 87,300 26,640 10,601 492,299 71,378 - 306,443 11,753
Deposit with banks 3,010 - - - - - - - - -
Preference shares - 142,682 48,718 3,488 12,988 - - - - 19,466
Total 12,597 9,276,151 3,405,711 228,708 1,000,583 6,814,143 2,693,663 41,141,435 21,961,390 969,413
Other investments
Corporate bonds - - - - - - 2,112 - - -
Infrastructure bonds - - - - - - - - - -
Equity - 286,997 100,947 6,841 29,955 614,979 - - 866,453 32,564
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - -
Venture fund - - - - - - - - - -
Total - 286,997 100,947 6,841 29,955 614,979 2,112 - 866,453 32,564
Grand total 12,597 9,563,148 3,506,658 235,549 1,030,538 7,429,122 2,695,775 41,141,435 22,827,843 1,001,977
% of approved investments to Total 100.00% 97.00% 97.12% 97.10% 97.09% 91.72% 99.92% 100.00% 96.20% 96.75%
% of other investments to Total 0.00% 3.00% 2.88% 2.90% 2.91% 8.28% 0.08% 0.00% 3.80% 3.25%

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt LMCapBal 105 LMCapGro 105
105
Approved investments
Government bonds 151,039 8,431 83,409 - - - - - 1,579,104 -
Corporate bonds 91,102 1,998 251,095 - - - 569,340 5,569,282 1,164,710 -
Infrastructure bonds 71,926 3,231 - - - - 1,322,069 291,567 797,474 553,120
Equity 474,181 29,282 31,147,906 9,855,784 1,357,493 462,630 137,215,331 - 4,872,584 38,456,890
Money market 6,785 3,476 184,047 - - - 1,723,663 14,720,168 72,954 1,848,423
Mutual funds 46,650 7,734 548,441 442,263 111,393 39,720 10,955,751 3,550,351 729,600 1,718,434
Deposit with banks - - 169,300 - - - 49,500 1,906,300 100,000 19,800
Preference shares 14,724 897 - - - - - - 90,280 -
Total 856,407 55,049 32,384,198 10,298,047 1,468,886 502,350 151,835,654 26,037,668 9,406,706 42,596,667
Other investments
Corporate bonds - - - - - - - - 17,953 -
Infrastructure bonds - - - - - - - - - -
Equity 26,949 1,585 3,168,379 994,371 141,546 47,462 12,870,910 - 443,948 2,231,362
Money market - - - - - - - - - -
Mutual funds - - 211,418 74,602 13,727 4,178 4,035,799 - - -
Venture fund - - - - - - - - - -
Total 26,949 1,585 3,379,797 1,068,973 155,273 51,640 16,906,709 - 461,901 2,231,362
Grand total 883,356 56,634 35,763,995 11,367,020 1,624,159 553,990 168,742,363 26,037,668 9,868,607 44,828,029
% of approved investments to Total 96.95% 97.20% 90.55% 90.60% 90.44% 90.68% 89.98% 100.00% 95.32% 95.02%
% of other investments to Total 3.05% 2.80% 9.45% 9.40% 9.56% 9.32% 10.02% 0.00% 4.68% 4.98%

190
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Multiplier Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund Fund II Fund III Fund IV Guarantee Guarantee Guarantee Guarantee Guarantee
Fund VIII (10 Fund IX (10 Fund X (10 Yrs) Fund XI (5 Yrs) Fund XI (10
Yrs) Yrs) Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Approved investments
Government bonds - - - - 13,181 22,075 75,671 - 3,282 -
Corporate bonds - - - - 30,254 11,475 96,290 - 3,158 -
Infrastructure bonds 8,161 2,079 125 961 43,630 13,112 63,581 - 2,375 -
Equity 6,725,021 1,813,989 90,149 801,820 - - - - - 4,742,400
Money market - - - - - - - - - -
Mutual funds 187,478 58,171 7,929 23,521 9,773 946 8,502 - 1,702 191,942
Deposit with banks - - - - 89,480 55,120 110,375 - 3,690 -
Preference shares - - - - - - - - - -
Total 6,920,660 1,874,239 98,203 826,302 186,318 102,728 354,419 - 14,207 4,934,342
Other investments
Corporate bonds - - - - - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 666,562 179,305 8,987 78,934 - - - - - 290,159
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - 142,143
Venture fund - - - - - - - - - -
Total 666,562 179,305 8,987 78,934 - - - - - 432,302
Grand total 7,587,222 2,053,544 107,190 905,236 186,318 102,728 354,419 - 14,207 5,366,644
% of approved investments to Total 91.21% 91.27% 91.62% 91.28% 100.00% 100.00% 100.00% 0.00% 100.00% 91.94%
% of other investments to Total 8.79% 8.73% 8.38% 8.72% 0.00% 0.00% 0.00% 0.00% 0.00% 8.06%

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB LIncome 105 LInvCash 105 LInvShld 105 105
105
Approved investments
Government bonds 56,761 - - - - 44,409,217 22,681,471 2,015,175 182,318 -
Corporate bonds 33,642 - - - - - 18,713,589 1,676,533 109,633 -
Infrastructure bonds 19,142 - 134,082 - - - 9,427,102 1,046,960 151,419 -
Equity 178,321 15,908,331 11,475,842 759,348 8,888,671 7,597,612 - - 113,634 11,562,452
Money market 2,450 - 4,711 - - - 647,424 - 41,885 -
Mutual funds 24,793 76,268 236,733 25,706 187,611 511,727 331,779 48,962 99,422 1,264,597
Deposit with banks - - - - - - 915,924 - - -
Preference shares 5,529 - - - - - - - 7,656 -
Total 320,638 15,984,599 11,851,368 785,054 9,076,282 52,518,556 52,717,289 4,787,630 705,967 12,827,049
Other investments
Corporate bonds - - - - - - 341,928 5,280 - -
Infrastructure bonds - - - - - - - - - -
Equity 10,035 1,223,641 811,246 59,440 615,541 278,032 - - 9,851 1,095,607
Money market - - - - - - - - - -
Mutual funds - - - - - - - - - 318,131
Venture fund - - - - - - - - - -
Total 10,035 1,223,641 811,246 59,440 615,541 278,032 341,928 5,280 9,851 1,413,738
Grand total 330,673 17,208,240 12,662,614 844,494 9,691,823 52,796,588 53,059,217 4,792,910 715,818 14,240,787
% of approved investments to Total 96.97% 92.89% 93.59% 92.96% 93.65% 99.47% 99.36% 99.89% 98.62% 90.07%
% of other investments to Total 3.03% 7.11% 6.41% 7.04% 6.35% 0.53% 0.64% 0.11% 1.38% 9.93%

191
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Life Secure Maximise New Invest Opportunities Pinnacle Fund Pinnacle Preserver Preserver Preserver Protector Fund
Fund India Fund Shield Fund Fund II Fund Fund III Fund IV
Balanced Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105
Approved investments
Government bonds 4,506,619 - 169,640 - 6,341,914 3,893,815 - - - 2,573,262
Corporate bonds 3,756,416 - 223,264 - - - 975,896 39,824 123,879 1,744,634
Infrastructure bonds 2,225,413 - 322,442 - - - - - - 1,511,572
Equity - 1,586,180 335,717 5,000,799 2,306,032 1,795,624 - - - -
Money market 209,961 - - - - - 2,372,699 122,725 343,569 28,834
Mutual funds 405,764 80,285 122,914 97,478 15,908 112,027 606,890 21,130 89,706 25,835
Deposit with banks 259,140 - - 100,000 - - 472,100 22,840 88,800 49,000
Preference shares - - 36,770 - - - - - - -
Total 11,363,313 1,666,465 1,210,747 5,198,277 8,663,854 5,801,466 4,427,585 206,519 645,954 5,933,137
Other investments
Corporate bonds 45,398 - - - - - - - - 17,930
Infrastructure bonds - - - - - - - - - -
Equity - 116,726 27,970 302,149 84,388 65,710 - - - -
Money market - - - - - - - - - -
Mutual funds - - - 147,020 - - - - - -
Venture fund - - 6,559 - - - - - - -
Total 45,398 116,726 34,529 449,169 84,388 65,710 - - - 17,930
Grand total 11,408,711 1,783,191 1,245,276 5,647,446 8,748,242 5,867,176 4,427,585 206,519 645,954 5,951,067
% of approved investments to Total 99.60% 93.45% 97.23% 92.05% 99.04% 98.88% 100.00% 100.00% 100.00% 99.70%
% of other investments to Total 0.40% 6.55% 2.77% 7.95% 0.96% 1.12% 0.00% 0.00% 0.00% 0.30%

(` in ‘000)
Linked Life Funds
Particulars Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 LProtect3 LProtect4 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105
Approved investments
Government bonds 1,261,879 126,505 1,802,173 - - - 113,015 2,766 21,567 - 113,917,714
Corporate bonds 1,140,613 97,273 1,104,634 - - - 67,018 1,021 18,389 - 41,354,254
Infrastructure bonds 608,738 57,977 1,149,328 - - - 56,603 - 14,515 - 22,405,061
Equity - - - 6,881,843 260,396 3,510,588 54,324 19,954 39,367 - 349,787,754
Money market - - 89,236 - - - 4,994 188 1,885 - 47,097,971
Mutual funds 21,945 6,727 17,594 311,883 9,710 156,898 22,856 3,815 11,487 - 24,657,966
Deposit with banks - - 196,000 - - - - - - - 4,610,379
Preference shares - - - - - - - - - - 383,198
Total 3,033,175 288,482 4,358,965 7,193,726 270,106 3,667,486 318,810 27,744 107,210 - 604,214,297
Other investments
Corporate bonds 3,168 - 14,756 - - - 4,348 - - - 452,873
Infrastructure bonds - - - - - - - - - - -
Equity - - - 421,014 15,901 213,675 3,015 901 2,119 - 28,446,156
Money market - - - - - - - - - - -
Mutual funds - - - 202,778 7,708 102,912 - - - - 5,260,416
Venture fund - - - - - - - - - - 6,559
Total 3,168 - 14,756 623,792 23,609 316,587 7,363 901 2,119 - 34,166,004
Grand total 3,036,343 288,482 4,373,721 7,817,518 293,715 3,984,073 326,173 28,645 109,329 - 638,380,301
% of approved investments to Total 99.90% 100.00% 99.66% 92.02% 91.96% 92.05% 97.74% 96.85% 98.06% 0.00% 94.65%
% of other investments to Total 0.10% 0.00% 0.34% 7.98% 8.04% 7.95% 2.26% 3.15% 1.94% 0.00% 5.35%

192
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement SP Retirement Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Balanced Fund Secure Fund Fund II Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1 105
105 105 105
Approved investments
Government bonds - 403,552 18,018 101,919 68,407 905,635 872,198 - 67,909 134,271
Corporate bonds - 751,438 6,157 147,504 73,208 1,065,001 978,941 - - 168,164
Infrastructure bonds - 290,633 4,004 75,781 38,191 570,348 547,121 - - 74,417
Equity - 1,289,744 35,080 - 43,925 1,635,752 1,531,124 1,197,072 7,772,260 543,663
Money market 1,014,363 41,838 9,047 111,196 6,408 9,423 - - - 1,413
Mutual funds - 186,578 8,578 41,219 35,852 179,119 69,632 32,884 101,273 21,873
Deposit with banks - - - 4,796 - - - - - -
Preference shares - 1,890 - - 1,806 61,889 61,891 - - 19,250
Total 1,014,363 2,965,673 80,884 482,415 267,797 4,427,167 4,060,907 1,229,956 7,941,442 963,051
Other investments
Corporate bonds - 3,168 - 1,056 1,056 21,168 20,150 - - 4,220
Infrastructure bonds - - - - - - - - - -
Equity - 123,312 3,468 - 3,730 138,849 120,284 117,199 317,848 35,332
Money market - - - - - - - - - -
Mutual funds - 10,743 298 - - - - - - -
Venture fund - - - - - - - - - -
Total - 137,223 3,766 1,056 4,786 160,017 140,434 117,199 317,848 39,552
Grand total 1,014,363 3,102,896 84,650 483,471 272,583 4,587,184 4,201,341 1,347,155 8,259,290 1,002,603
% of approved investments to Total 100.00% 95.58% 95.55% 99.78% 98.24% 96.51% 96.66% 91.30% 96.15% 96.06%
% of other investments to Total 0.00% 4.42% 4.45% 0.22% 1.76% 3.49% 3.34% 8.70% 3.85% 3.94%

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Guarantee Guarantee Guarantee Fund Fund II
Fund II Fund II Fund VIII Fund IX (10 Fund X (10 Yrs) Fund XI (10
Yrs) Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 105 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
Approved investments
Government bonds 130,922 - 3,597,278 1,326,904 321 2,679 18,997 2,228 - -
Corporate bonds 115,325 - 4,813,658 1,880,033 34,774 6,347 11,618 1,044 - -
Infrastructure bonds 94,600 - 3,474,588 997,538 21,258 7,377 19,150 2,151 - -
Equity 517,541 19,430,362 - - - - - - 11,841,742 6,849,204
Money market - - - - - - 380 - - -
Mutual funds 18,462 204,922 14,292 99,912 9,636 998 11,603 471 218,553 94,394
Deposit with banks - - 187,300 - 62,840 13,515 16,520 5,420 - -
Preference shares 21,272 - - - - - - - - -
Total 898,122 19,635,284 12,087,116 4,304,387 128,829 30,916 78,268 11,314 12,060,295 6,943,598
Other investments
Corporate bonds 4,220 - 408,156 33,779 - - - - - -
Infrastructure bonds - - - - - - - - - -
Equity 35,138 1,337,178 - - - - - - 732,558 423,248
Money market - - - - - - - - - -
Mutual funds - - - - - - - - 361,087 204,520
Venture fund - - - - - - - - - -
Total 39,358 1,337,178 408,156 33,779 - - - - 1,093,645 627,768
Grand total 937,480 20,972,462 12,495,272 4,338,166 128,829 30,916 78,268 11,314 13,153,940 7,571,366
% of approved investments to Total 95.80% 93.62% 96.73% 99.22% 100.00% 100.00% 100.00% 100.00% 91.69% 91.71%
% of other investments to Total 4.20% 6.38% 3.27% 0.78% 0.00% 0.00% 0.00% 0.00% 8.31% 8.29%

193
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Pension Funds
Particulars Pension Secure Secure Plus Pension Flexi Pension Pension Pension Pension Pension Pension Multi Pension Multi
Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Money Market Cap Balanced Cap Growth
Fund Fund II Fund Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Approved investments
Government bonds 237,653 34,522 - - 1,552,961 - - - 223,769 -
Corporate bonds 412,327 36,728 - - 1,917,902 - - 612,793 260,513 -
Infrastructure bonds 176,067 33,954 - - 1,509,558 - - - 103,641 -
Equity - 22,237 15,105,823 404,930 - 4,835,385 10,488,426 - 868,472 11,195,041
Money market 86,524 - - - - - - 1,156,219 - -
Mutual funds 150,345 5,441 155,939 30,584 281,697 408,387 342,666 302,490 51,383 162,388
Deposit with banks - - - - - - - 140,103 - -
Preference shares - - - - - - - - 27,708 -
Total 1,062,916 132,882 15,261,762 435,514 5,262,118 5,243,772 10,831,092 2,211,605 1,535,486 11,357,429
Other investments
Corporate bonds 10,552 - - - 17,938 - - - 10,546 -
Infrastructure bonds - - - - - - - - - -
Equity - 1,294 1,097,189 40,701 - 491,112 1,094,507 - 88,745 653,863
Money market - - - - - - - - - -
Mutual funds - - - 2,984 - 41,777 36,844 - - -
Venture fund - - - - - - - - - -
Total 10,552 1,294 1,097,189 43,685 17,938 532,889 1,131,351 - 99,291 653,863
Grand total 1,073,468 134,176 16,358,951 479,199 5,280,056 5,776,661 11,962,443 2,211,605 1,634,777 12,011,292
% of approved investments to Total 99.02% 99.04% 93.29% 90.88% 99.66% 90.78% 90.54% 100.00% 93.93% 94.56%
% of other investments to Total 0.98% 0.96% 6.71% 9.12% 0.34% 9.22% 9.46% 0.00% 6.07% 5.44%

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
ULIF 043 25/02/08 PMultip1 ULIF 045 25/02/08 PMultip2 ULIF 092 11/01/10 POpport ULIF 011 17/05/04 PPreserv Total
105 105 105 105
Approved investments
Government bonds - - - - 9,700,143
Corporate bonds - - - 1,123,595 14,417,070
Infrastructure bonds - - - - 8,040,377
Equity 3,682,221 1,642,735 2,844,933 - 103,777,672
Money market - - - 3,470,524 5,907,335
Mutual funds 87,391 44,597 35,133 587,665 3,996,357
Deposit with banks - - - 629,600 1,060,094
Preference shares - - - - 195,706
Total 3,769,612 1,687,332 2,880,066 5,811,384 147,094,754
Other investments
Corporate bonds - - - - 536,009
Infrastructure bonds - - - - -
Equity 367,286 163,769 177,979 - 7,564,589
Money market - - - - -
Mutual funds - - 93,126 - 751,379
Venture fund - - - - -
Total 367,286 163,769 271,105 - 8,851,977
Grand total 4,136,898 1,851,101 3,151,171 5,811,384 155,946,731
% of approved investments to Total 91.12% 91.15% 91.40% 100.00% 94.32%
% of other investments to Total 8.88% 8.85% 8.60% 0.00% 5.68%

194
schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Health Preserver Health Protector Fund
Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Approved investments
Government bonds 92,027 83,325 - - - 384,018 559,370
Corporate bonds 61,908 56,919 - - 9,615 612,201 740,643
Infrastructure bonds 41,456 39,324 - - - 409,924 490,704
Equity 126,099 266,641 4,581,476 510,167 - - 5,484,383
Money market 4,052 3,769 - - 37,960 20,354 66,135
Mutual funds 26,953 33,432 376,930 38,125 9,300 6,284 491,024
Deposit with banks - - - - 6,900 141,300 148,200
Preference shares 3,733 6,254 - - - - 9,987
Total 356,228 489,664 4,958,406 548,292 63,775 1,574,081 7,990,446
Other investments
Corporate bonds - - - - - 11,617 11,617
Infrastructure bonds - - - - - - -
Equity 9,830 15,189 247,359 49,769 - - 322,147
Money market - - - - - - -
Mutual funds - - - - - - -
Venture fund - - - - - - -
Total 9,830 15,189 247,359 49,769 - 11,617 333,764
Grand total 366,058 504,853 5,205,765 598,061 63,775 1,585,698 8,324,210
% of approved investments to Total 97.31% 96.99% 95.25% 91.68% 100.00% 99.27% 95.99%
% of other investments to Total 2.69% 3.01% 4.75% 8.32% 0.00% 0.73% 4.01%

(` in ‘000)
Linked Group Funds
Particulars Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Debt Fund Debt Fund II Debt Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105 105
Approved investments
Government bonds 3,963,104 2,359,240 25,295 498,208 522,065 8,180 280,826 146,597 14,808 29,289
Corporate bonds 6,646,427 3,644,400 25,481 612,021 666,699 5,233 310,398 181,863 1,016 16,379
Infrastructure bonds 2,182,028 1,717,551 8,004 367,631 413,824 2,999 169,880 156,949 2,999 12,234
Equity 2,560,772 1,673,000 14,671 301,350 351,845 - - - 14,897 76,690
Money market 283 820,395 4,113 18,092 156,594 2,244 24,877 152,939 5,438 1,696
Mutual funds 776,023 445,746 13,621 62,527 190,655 3,075 75,167 106,557 4,686 17,095
Deposit with banks 128,400 332,104 - - - - - 8,040 - -
Preference shares 176,394 - 742 14,796 - - - - 428 -
Total 16,433,431 10,992,436 91,927 1,874,625 2,301,682 21,731 861,148 752,945 44,272 153,383
Other investments
Corporate bonds 386,096 115,134 3,261 74,752 10,550 - 14,764 13,704 - -
Infrastructure bonds 30,784 10,261 - - - - - - - -
Equity 283,230 168,930 1,719 34,325 37,676 - - - 1,617 7,680
Money market - - - - - - - - - -
Mutual funds 23,873 13,727 74 1,842 2,984 - - - 74 597
Venture fund - - - - - - - - - -
Total 723,983 308,052 5,054 110,919 51,210 - 14,764 13,704 1,691 8,277
Grand total 17,157,414 11,300,488 96,981 1,985,544 2,352,892 21,731 875,912 766,649 45,963 161,660
% of approved investments to Total 95.78% 97.27% 94.79% 94.41% 97.82% 100.00% 98.31% 98.21% 96.32% 94.88%
% of other investments to Total 4.22% 2.73% 5.21% 5.59% 2.18% 0.00% 1.69% 1.79% 3.68% 5.12%

195
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 2

INVESTMENTS AS AT MARCH 31, 2017

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Term Debt Guarantee Guarantee Guarantee Guarantee Guarantee
Balance Fund Income Fund Short Term Fund - S5 Fund Growth Fund II Growth Fund III Short Term Short Term Short Term
Fund Debt Fund Debt Fund II Debt Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 02/04/08 26/02/10 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
GLEBal 105 GLEIncome GLEST 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105 105
Approved investments
Government bonds 225,224 32,009 - - - 60,500 19,709 - - -
Corporate bonds 304,685 37,811 - - 759,617 31,540 8,193 11,562 1,184,717 221,225
Infrastructure bonds 197,751 26,363 - - 67,107 30,396 6,037 - - -
Equity 139,145 - - - - 71,168 23,480 - - -
Money market 7,633 10,020 - - 1,752,772 3,863 1,225 89,781 2,452,529 583,032
Mutual funds 30,671 17,534 - - 325,049 17,849 5,785 16,287 386,302 136,951
Deposit with banks - - - - 275,800 - 3,200 3,500 369,200 63,753
Preference shares 7,401 - - - - 907 - - - -
Total 912,510 123,737 - - 3,180,345 216,223 67,629 121,130 4,392,748 1,004,961
Other investments
Corporate bonds 4,222 1,054 - - - 1,087 - - - -
Infrastructure bonds - - - - - - - - - -
Equity 15,888 - - - - 7,143 2,218 - - -
Money market - - - - - - - - - -
Mutual funds 1,032 - - - - 597 119 - - -
Venture fund - - - - - - - - - -
Total 21,142 1,054 - - - 8,827 2,337 - - -
Grand total 933,652 124,791 - - 3,180,345 225,050 69,966 121,130 4,392,748 1,004,961
% of approved investments to Total 97.74% 99.16% 0.00% 0.00% 100.00% 96.08% 96.66% 100.00% 100.00% 100.00%
% of other investments to Total 2.26% 0.84% 0.00% 0.00% 0.00% 3.92% 3.34% 0.00% 0.00% 0.00%

(` in ‘000)
Linked Group Funds
Particulars Group Debt Fund Group Debt Fund II Group Equity Group Growth Group Short Term Group Short Term
Fund II Fund Debt Fund II Debt Fund III Grand Total
Total
ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
Approved investments
Government bonds 2,695,677 552,861 - 760,352 251 - 12,194,195 136,371,422
Corporate bonds 4,441,766 870,475 - 1,070,001 1,508 80,098 21,133,115 77,645,082
Infrastructure bonds 2,180,341 617,105 - 522,240 - - 8,681,439 39,617,581
Equity - - 19,828 3,115,567 - - 8,362,413 467,412,222
Money market 293,902 63,888 - 73,122 9,851 221,884 6,750,173 59,821,614
Mutual funds 263,182 176,300 2,046 116,927 1,803 51,064 3,242,902 32,388,249
Deposit with banks 396,000 29,700 - - - 22,755 1,632,452 7,451,125
Preference shares - - - 154,949 - - 355,617 944,508
Total 10,270,868 2,310,329 21,874 5,813,158 13,413 375,801 62,352,306 821,651,803
Other investments
Corporate bonds 159,339 7,392 - 71,957 - - 863,312 1,863,811
Infrastructure bonds - - - - - - 41,045 41,045
Equity - - 2,100 348,095 - - 910,621 37,243,513
Money market - - - - - - - -
Mutual funds - - 119 23,518 - - 68,556 6,080,351
Venture fund - - - - - - - 6,559
Total 159,339 7,392 2,219 443,570 - - 1,883,534 45,235,279
Grand total 10,430,207 2,317,721 24,093 6,256,728 13,413 375,801 64,235,840 866,887,082
% of approved investments to Total 98.47% 99.68% 90.79% 92.91% 100.00% 100.00% 97.07% 94.78%
% of other investments to Total 1.53% 0.32% 9.21% 7.09% 0.00% 0.00% 2.93% 5.22%

196
schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105 LFlexiBal1 105
Accrued interest 2,043 111,690 42,047 2,261 12,397 4 50,570 414,268 3,669 7,243
Cash & Bank balance 10 10 10 10 10 387 10 214 1,138 51
Dividend receivable - 9,365 3,196 228 853 - - - 6,139 974
Receivable for sale of - 245,177 84,268 5,652 24,835 40,979 105,522 - 1,078,402 18,169
investments
Unit collection a/c - - - 4,488 156 27,971 868 - - -
Other current assets (for - 1 - - - 19 - 3 194 -
Investments)
Total 2,053 366,243 129,521 12,639 38,251 69,360 156,970 414,485 1,089,542 26,437

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Maximiser Fund Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt 105 LMCapBal 105 LMCapGro 105
Accrued interest 6,346 233 30,707 - - - 41,285 351,377 73,433 4,340
Cash & Bank balance 50 12 745 373 60 27 5,794 10 68 502
Dividend receivable 736 46 - - - - - - 3,670 1,978
Receivable for sale of 14,471 11,728 275,721 21,128 5,813 1,017 26,649 300 169,240 -
investments
Unit collection a/c 3,882 - - - - - 934,103 331,544 52,853 212,435
Other current assets (for - - 50 13 2 1 267 - - -
Investments)
Total 25,485 12,019 307,223 21,514 5,875 1,045 1,008,098 683,231 299,264 219,255

(` in ‘000)
Linked Life Funds
Particulars Multiplier Fund Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund II Fund III Fund IV Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund
VIII (10 Yrs) IX (10 Yrs) X (10 Yrs) XI (5 Yrs) XI (10 Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08 LRICH1
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 105
Accrued interest 9 2 - 1 39,036 20,041 58,814 - 1,915 -
Cash & Bank balance 431 123 16 60 10 10 10 - 10 44,529
Dividend receivable - - - - - - - - - -
Receivable for sale of 41,750 11,316 531 5,038 - - - - - 78,626
investments
Unit collection a/c - - - 332 - - - - - 1,151
Other current assets (for 16 5 - 2 - - - - - 15
Investments)
Total 42,206 11,446 547 5,433 39,046 20,051 58,824 - 1,925 124,321

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105 LInvCash 105 LInvShld 105 105
Accrued interest 2,249 - 565 - - 1,160,374 1,242,914 96,742 8,502 -
Cash & Bank balance 21 181 123 18 98 320 10 10 10 429
Dividend receivable 276 995 646 45 517 1,582 - - 492 -
Receivable for sale of 5,468 110,744 - 980 19,943 686,845 2,208,712 166,459 18,050 1,277
investments
Unit collection a/c 4,169 - - - - 23,827 569,804 - - 101,356
Other current assets (for - 16 - - 2 131 - - - 23
Investments)
Total 12,183 111,936 1,334 1,043 20,560 1,873,079 4,021,440 263,211 27,054 103,085

197
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Life Secure Maximise India New Invest Opportunities Pinnacle Fund Pinnacle Fund II Preserver Fund Preserver Preserver Protector Fund
Fund Fund Shield Balanced Fund Fund III Fund IV
Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw 105 LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
Accrued interest 251,152 - 13,186 7,835 158,176 105,536 91,544 8,332 21,825 115,036
Cash & Bank balance 10 46 10 47,039 110 89 10 10 10 10
Dividend receivable - 89 2,357 - 545 430 - - - -
Receivable for sale of 461,316 - 14,745 82,324 71,750 64,462 25 - - 606,783
investments
Unit collection a/c 88,541 20,461 - 7,271 - - - 1,737 316 -
Other current assets (for - 6 - 15 14 12 - - - -
Investments)
Total 801,019 20,602 30,298 144,484 230,595 170,529 91,579 10,079 22,151 721,829

(` in ‘000)
Linked Life Funds
Particulars Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 105 LProtect3 105 LProtect4 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Accrued interest 62,463 5,923 86,479 - - - 4,541 54 1,136 - 4,718,295
Cash & Bank balance 10 10 10 64,816 2,457 33,015 10 10 10 - 203,602
Dividend receivable - - - - - - - 2 3 - 35,164
Receivable for sale of 126,406 22,014 744,770 115,254 4,451 58,635 10,655 410 2,589 - 7,871,399
investments
Unit collection a/c - - 12,327 - - 144 56 - 21 - 2,399,813
Other current assets (for - - 1 22 1 11 - - - 6,590,425 6,591,267
Investments)
Total 188,879 27,947 843,587 180,092 6,909 91,805 15,262 476 3,759 6,590,425 21,819,540

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Retirement Easy Retirement Easy Retirement Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Balanced Fund SP Balanced Secure Fund Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Fund Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Accrued interest - 28,182 513 10,366 3,392 52,878 49,065 - 1,338 10,159
Cash & Bank balance 251 55 11 10 10 10 10 90 416 52
Dividend receivable - 120 - - 117 4,010 4,010 - 2,209 982
Receivable for sale of - 59,270 1,457 10,711 7,519 108,438 138,440 16,465 281,115 15,694
investments
Unit collection a/c 5,626 29,962 1,249 3,748 - - - 493 - 2,328
Other current assets (for - 7 - - - - 4 3 52 -
Investments)
Total 5,877 117,596 3,230 24,835 11,038 165,336 191,529 17,051 285,130 29,215

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Fund II Growth Fund Protector Fund Protector Fund II Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Fund Fund II
VIII IX (10 Yrs) X (10 Yrs) XI (10 Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 105 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
Accrued interest 7,964 - 286,340 105,152 20,060 7,003 7,805 2,423 - -
Cash & Bank balance 50 205 10 10 10 10 10 10 109,517 63,521
Dividend receivable 1,113 1,170 - - - - - - - -
Receivable for sale of 15,652 58,129 100,575 149,224 - - - - 202,531 120,180
investments
Unit collection a/c - - 16,754 - - - - - - -
Other current assets (for - 6 - - - - - - 37 22
Investments)
Total 24,779 59,510 403,679 254,386 20,070 7,013 7,815 2,433 312,085 183,723

198
schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2017

(` in ‘000)
Linked Pension Funds
Particulars Pension Secure Secure Plus Pension Flexi Pension Growth Pension Income Pension Pension Pension Money Pension Multi Pension Multi
Fund Pension Fund Growth Fund II Fund Fund Maximiser Fund Maximiser Market Fund Cap Balanced Cap Growth
Fund II Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt 105 PMCapBal 105 PMCapGro 105
Accrued interest 17,299 2,539 - - 134,819 - - 30,081 11,797 -
Cash & Bank balance 10 10 168 24 10 148 232 10 22 121
Dividend receivable - - 936 - - - - - 1,333 780
Receivable for sale of 26,367 4,062 39,163 886 232,478 23,752 130,731 - 26,570 36,154
investments
Unit collection a/c 7,531 - - 2,367 7,037 - - - - -
Other current assets (for - - 7 1 - 8 28 - - 7
Investments)
Total 51,207 6,611 40,274 3,278 374,344 23,908 130,991 30,091 39,722 37,062

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
Total
ULIF 043 25/02/08 PMultip1 105 ULIF 045 25/02/08 PMultip2 105 ULIF 092 11/01/10 POpport 105 ULIF 011 17/05/04 PPreserv 105
Accrued interest - - - 98,715 887,890
Cash & Bank balance 246 115 26,217 10 201,611
Dividend receivable - - - - 16,780
Receivable for sale of 23,056 10,251 48,398 75 1,887,343
investments
Unit collection a/c 856 - - 17,715 95,666
Other current assets (for 8 4 9 - 203
Investments)
Total 24,166 10,370 74,624 116,515 3,089,493

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Accrued interest 3,431 3,241 - - 5,409 68,983 81,064
Cash & Bank balance 10 37 516 41 10 10 624
Dividend receivable 244 297 695 - - - 1,236
Receivable for sale of 8,983 8,164 - 3,232 - 5,247 25,626
investments
Unit collection a/c 1,820 2,265 14,643 2,078 263 8,131 29,200
Other current assets (for - - - 2 - - 2
Investments)
Total 14,488 14,004 15,854 5,353 5,682 82,371 137,752

(` in ‘000)
Linked Group Funds
Particulars Group Balanced Group Balanced Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Fund Fund II Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Fund II
Balanced Fund Balanced Fund II Balanced Fund Fund II Fund III Growth Fund
Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 105 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105
Accrued interest 321,523 197,178 1,292 31,452 36,960 237 16,813 15,602 282 871
Cash & Bank balance 106 69 10 22 22 10 10 10 11 12
Dividend receivable 11,200 - 47 930 - - - - 27 -
Receivable for sale of 570,367 178,821 2,950 64,219 62,346 962 27,141 13,057 1,001 1,960
investments
Unit collection a/c 191,747 114,554 840 19,104 21,867 189 7,107 17,849 405 16,030
Other current assets (for 4 7 - 1 - - - - - -
Investments)
Total 1,094,947 490,629 5,139 115,728 121,195 1,398 51,071 46,518 1,726 18,873

199
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 3

CURRENT ASSETS AS AT MARCH 31, 2017

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Fund Term Debt Fund Guarantee Guarantee Guarantee Short Guarantee Guarantee
Balance Fund Income Fund Short Term Fund - S5 Growth Fund II Growth Fund III Term Debt Fund Short Term Debt Short Term Debt
Fund II Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 GLEBal 02/04/08 26/02/10 GLEST 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
105 GLEIncome 105 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105
Accrued interest 16,242 1,912 - - 88,224 2,271 3,124 1,171 92,393 12,826
Cash & Bank balance 14 10 - - 10 12 11 10 10 10
Dividend receivable 470 - - - - 58 - - - -
Receivable for sale of 30,556 3,698 - - - 4,576 1,336 - 25 25
investments
Unit collection a/c 9,940 988 - - 22,787 1,827 430 948 42,312 8,946
Other current assets (for - - - - - - - - - -
Investments)
Total 57,222 6,608 - - 111,021 8,744 4,901 2,129 134,740 21,807

(` in ‘000)
Linked Group Funds
Particulars Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund Group Short Term Group Short Term
Debt Fund II Debt Fund III Grand Total
Total
ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
Accrued interest 258,905 53,699 - 50,992 61 5,263 1,209,293 6,896,542
Cash & Bank balance 10 10 11 105 10 10 525 406,362
Dividend receivable - - - 9,838 - - 22,570 75,750
Receivable for sale of 348,039 63,720 41 109,005 - - 1,483,845 11,268,213
investments
Unit collection a/c 98,020 108,028 169 57,815 30 2,875 744,807 3,269,486
Other current assets (for 1 - - 5 - - 18 6,591,490
Investments)
Total 704,975 225,457 221 227,760 101 8,148 3,461,058 28,507,843

200
schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund Fund - Life Fund Fund

ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE LFlexiBal1 105
105
Payable for purchase of investments - 54,986 19,910 1,341 5,811 79,439 25,595 2,632,055 907,774 3,789
Other current liabilities - 700 114 17 33 313 111 613 978 73
Unit payable a/c 1,000 23,355 5,154 - - - - 532,901 5,686 19,400
Total 1,000 79,041 25,178 1,358 5,844 79,752 25,706 3,165,569 914,438 23,262

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund

ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt LMCapBal 105 LMCapGro 105
105
Payable for purchase of investments 3,415 11,086 204,101 65,975 10,215 3,534 1,617,544 - 38,292 -
Other current liabilities 28 4 2,540 533 114 26 7,056 614 426 1,902
Unit payable a/c - 3 137,081 41,097 2,641 344 - - - -
Total 3,443 11,093 343,722 107,605 12,970 3,904 1,624,600 614 38,718 1,902

(` in ‘000)
Linked Life Funds
Particulars Multiplier Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund Fund II Fund III Fund IV Guarantee Guarantee Guarantee Guarantee Guarantee
Fund VIII (10 Fund IX (10 Fund X (10 Yrs) Fund XI (5 Yrs) Fund XI (10
Yrs) Yrs) Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Payable for purchase of investments 50,381 15,493 828 6,906 - 1 2 - - 3,865
Other current liabilities 537 97 8 43 11 6 20 - 1 388
Unit payable a/c 2,042 819 4 - 4 4 81 - 1 -
Total 52,960 16,409 840 6,949 15 11 103 - 2 4,253

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund

ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB LIncome 105 LInvCash 105 LInvShld 105 105
105
Payable for purchase of investments 1,308 - - - - 657,317 514,246 45,680 5,394 138,619
Other current liabilities 11 1,228 598 60 458 3,145 2,381 197 29 817
Unit payable a/c - 454,512 71,426 588 17,783 - - 1,878 479 -
Total 1,319 455,740 72,024 648 18,241 660,462 516,627 47,755 5,902 139,436

201
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2017

(` in ‘000)
Linked Life Funds
Particulars Life Secure Maximise New Invest Opportunities Pinnacle Fund Pinnacle Preserver Preserver Preserver Protector Fund
Fund India Fund Shield Fund Fund II Fund Fund III Fund IV
Balanced Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105
Payable for purchase of investments 108,832 35,928 8,292 3,867 68,857 62,304 - - - 77,024
Other current liabilities 699 74 50 245 407 273 105 5 16 312
Unit payable a/c - - 30,500 - 8,057 5,009 46,015 - - 30,731
Total 109,531 36,002 38,842 4,112 77,321 67,586 46,120 5 16 108,067

(` in ‘000)
Linked Life Funds
Particulars Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 LProtect3 LProtect4 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105
Payable for purchase of investments 28,961 2,884 102,997 5,806 204 2,912 2,512 - 1 - 7,636,283
Other current liabilities 75 15 121 376 21 191 13 1 6 - 29,235
Unit payable a/c 5,766 23 - 775 142 - - 2 - - 1,445,303
Total 34,802 2,922 103,118 6,957 367 3,103 2,525 3 7 - 9,110,821

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement SP Retirement Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Balanced Fund Secure Fund Fund II Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1 105
105 105 105
Payable for purchase of investments - 56,240 340 3 3 32 31 4,858 254,506 5
Other current liabilities 16 182 4 23 11 336 138 58 352 73
Unit payable a/c - - - - 12 2,299 7,518 - 8,854 -
Total 16 56,422 344 26 26 2,667 7,687 4,916 263,712 78

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Guarantee Guarantee Guarantee Fund Fund II
Fund II Fund II Fund VIII Fund IX (10 Fund X (10 Yrs) Fund XI (10
Yrs) Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 105 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
Payable for purchase of investments 5 - 165 37 - - 2 - 8,386 4,738
Other current liabilities 30 1,490 609 108 7 2 4 1 951 365
Unit payable a/c 2,220 45,698 - 7,468 - - - - 1,599 4,208
Total 2,255 47,188 774 7,613 7 2 6 1 10,936 9,311

202
schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2017

(` in ‘000)
Linked Pension Funds
Particulars Pension Secure Secure Plus Pension Flexi Pension Pension Pension Pension Pension Pension Multi Pension Multi
Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Money Market Cap Balanced Cap Growth
Fund Fund II Fund Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Payable for purchase of investments 8 1 - 4,300 45 34,959 76,237 - 8 -
Other current liabilities 47 6 775 20 239 407 567 52 71 512
Unit payable a/c - 132 81,590 - - 4,737 49,571 4,364 685 13,433
Total 55 139 82,365 4,320 284 40,103 126,375 4,416 764 13,945

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund

Total
ULIF 043 25/02/08 PMultip1 ULIF 045 25/02/08 PMultip2 ULIF 092 11/01/10 POpport ULIF 011 17/05/04 PPreserv
105 105 105 105

Payable for purchase of investments 19,873 8,736 1,972 - 475,490

Other current liabilities 293 87 137 138 8,111
Unit payable a/c - 516 1,946 - 236,850
Total 20,166 9,339 4,055 138 720,451

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Health Preserver Health Protector Fund
Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105

Payable for purchase of investments 2,107 1,904 - 6,728 - 10 10,749

Other current liabilities 12 16 245 28 2 39 342
Unit payable a/c - - - - - - -
Total 2,119 1,920 245 6,756 2 49 11,091

(` in ‘000)
Linked Group Funds
Particulars Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Debt Fund Debt Fund II Debt Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105 105
Payable for purchase of investments 74,186 67,306 100 2,065 2,437 - 10 6 107 4,447
Other current liabilities 734 474 7 111 107 1 45 35 4 7
Unit payable a/c - - - - - - - - - -
Total 74,920 67,780 107 2,176 2,544 1 55 41 111 4,454

203
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 4

CURRENT LIABILITIES AS AT MARCH 31, 2017

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital Group Debt
Encashment Encashment Guarantee Term Debt Guarantee Guarantee Guarantee Guarantee Guarantee Fund
Income Fund Short Term Fund - S5 Fund Growth Fund II Growth Fund III Short Term Short Term Short Term
Fund Debt Fund Debt Fund II Debt Fund III
ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047 ULGF 002
02/04/08 26/02/10 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13 03/04/03 GDebt
GLEIncome GLEST 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3 105
105 105 105 105 105 105
Payable for purchase of investments 1 - - - 514 923 - - - 87
Other current liabilities 5 - - 133 15 3 5 204 45 451
Unit payable a/c - - - - - - - - - -
Total 6 - - 133 529 926 5 204 45 538

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Debt Fund II Group Equity Group Growth Group Short Term Group Short Term
Encashment Fund II Fund Debt Fund II Debt Fund III
Balance Fund Grand Total
Total
ULGF 013 02/04/08 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GLEBal 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105

Payable for purchase of investments 1,043 19 789 21,842 - - 175,882 8,298,404

Other current liabilities 40 99 1 262 1 15 2,804 40,492
Unit payable a/c - - - - - - - 1,682,153
Total 1,083 118 790 22,104 1 15 178,686 10,021,049

204
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Active Asset Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Discontinued Dynamic P/E
Allocation Fund Fund II Fund III Fund IV Fund Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
AAABF 105 LAnmolNiv LBalancer1 LBalancer2 LBalancer3 LBalancer4 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE
105 105 105 105 105 105
Income from investments
Interest income 192,151 288 406,483 148,503 9,092 44,567 449 201,786 3,168,979 301,921
Dividend income 29,148 - 49,944 18,130 1,232 5,208 100,771 - - 246,437
Profit/(loss) on sale of investment (11,355) (34) 430,246 161,005 11,786 45,908 836,406 1,484 (66,809) 2,738,029
Profit/(loss) on inter fund transfer/ (1,291) (16) 10,264 2,814 157 776 92,248 (321) (21,634) 76,631
sale of investment
Unrealised gain/(loss) 136,063 26 80,911 27,010 2,165 9,575 (256,538) (10,280) (56,314) (1,689,041)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 344,716 264 977,848 357,462 24,432 106,034 773,336 192,669 3,024,222 1,673,977
Fund management expenses 83,658 37 95,833 35,710 5,387 10,452 116,165 35,837 235,983 282,514
Fund administration expenses - - 120,231 - - - - - - -
Other charges F-5 253,632 10 25,251 24,302 1,210 7,082 137,824 43,480 5,034 160,122
Service tax/GST 176,751 15 43,844 10,669 1,139 3,152 55,694 14,890 40,896 77,657
Total expenditure (B) 514,041 62 285,159 70,681 7,736 20,686 309,683 94,207 281,913 520,293
Net income for the year (A-B) (169,325) 202 692,689 286,781 16,696 85,348 463,653 98,462 2,742,309 1,153,684
Add: Fund revenue account at the - 2,841 15,335,903 5,035,594 386,484 528,690 1,316,146 1,385,810 6,923,238 7,781,274
beginning of the year
Fund revenue account at the end (169,325) 3,043 16,028,592 5,322,375 403,180 614,038 1,779,799 1,484,272 9,665,547 8,934,958
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Income from investments
Interest income 25,473 23,959 1,469 9,029 602 5,280 7 1,029 3,514,660 3,947,438
Dividend income 7,320 6,738 447 2,536 170,456 158,784 11,043 115,127 46,886 -
Profit/(loss) on sale of investment 76,893 55,455 2,964 21,304 2,751,164 1,580,120 92,661 1,475,176 2,608,677 (12,798)
Profit/(loss) on inter fund transfer/ 55,626 26,870 1,802 12,638 1,942,399 742,217 37,355 968,553 271,440 11,074
sale of investment
Unrealised gain/(loss) (55,809) (8,181) (58) (6,344) (2,653,083) (641,428) (17,516) (1,137,168) (3,467,879) (135,547)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 109,503 104,841 6,624 39,163 2,211,538 1,844,973 123,550 1,422,717 2,973,784 3,810,167
Fund management expenses 20,325 9,200 1,378 3,389 294,840 187,133 19,566 132,999 894,540 755,751
Fund administration expenses - - - - - - - - - -
Other charges F-5 2,408 8,418 275 2,196 30,574 123,767 4,092 63,860 671,096 1,109,102
Service tax/GST 4,124 3,133 285 1,030 58,049 54,586 4,087 35,974 275,887 534,607
Total expenditure (B) 26,857 20,751 1,938 6,615 383,463 365,486 27,745 232,833 1,841,523 2,399,460
Net income for the year (A-B) 82,646 84,090 4,686 32,548 1,828,075 1,479,487 95,805 1,189,884 1,132,261 1,410,707
Add: Fund revenue account at the 903,583 528,161 54,759 176,327 21,626,920 8,296,240 944,339 7,809,746 10,471,858 5,721,019
beginning of the year
Fund revenue account at the end 986,229 612,251 59,445 208,875 23,454,995 9,775,727 1,040,144 8,999,630 11,604,119 7,131,726
of the year

205
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Invest Shield Invest Shield Life Growth Life Secure Maximise Maximiser Fund Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund India Fund Fund II Fund III Fund IV Fund V
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 LMaximis2 LMaximis3 LMaximis4 LMaximis5
105 105 105 105 105
Income from investments
Interest income 324,747 39,878 10,765 957,456 48 23,843 3,271 30 7 188,478
Dividend income - 1,830 237,606 - 21,812 495,206 157,147 21,989 5,723 2,901,308
Profit/(loss) on sale of investment 6,383 18,432 591,917 (39,244) 109,675 3,271,246 1,119,338 142,282 67,068 6,987,803
Profit/(loss) on inter fund transfer/ 2,590 699 3,769 3,020 7,876 656,861 151,163 19,710 54,068 68,948
sale of investment
Unrealised gain/(loss) (27,233) (3,069) 728,468 (78,598) 124,886 (492,611) (191,488) (8,453) (69,448) 9,155,364
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 306,487 57,770 1,572,525 842,634 264,297 3,954,545 1,239,431 175,558 57,418 19,301,901
Fund management expenses 56,690 8,961 312,618 255,883 27,704 346,123 165,747 35,403 5,978 2,816,120
Fund administration expenses - - - - - 433,910 - - - -
Other charges F-5 80,497 11,705 360,856 318,944 60,881 80,637 76,254 6,474 1,243 4,142,591
Service tax/GST 24,377 3,521 164,369 138,894 22,881 156,767 42,285 7,222 1,553 1,746,960
Total expenditure (B) 161,564 24,187 837,843 713,721 111,466 1,017,437 284,286 49,099 8,774 8,705,671
Net income for the year (A-B) 144,923 33,583 734,682 128,913 152,831 2,937,108 955,145 126,459 48,644 10,596,230
Add: Fund revenue account at the 1,785,504 1,136,416 758,588 582,211 37,785 63,631,808 16,532,428 2,893,117 515,214 12,964,905
beginning of the year
Fund revenue account at the end 1,930,427 1,169,999 1,493,270 711,124 190,616 66,568,916 17,487,573 3,019,576 563,858 23,561,135
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Money Market Multi Cap Multi Cap Multiplier Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund Fund II Fund III Fund IV Shield Fund
Balanced Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 26/10/09
LMoneyMkt LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw LOpport 105 LPinnacle 105
105 105
Income from investments
Interest income 1,857,771 346,833 157,382 711 185 11 87 50,638 477 428,873
Dividend income - 82,358 701,151 80,768 24,866 1,185 10,848 4,477 72,723 32,574
Profit/(loss) on sale of investment 71,064 333,867 2,058,471 1,538,314 331,596 15,709 149,780 87,587 568,745 231,284
Profit/(loss) on inter fund transfer/ (6,680) 69,627 534,083 592,824 32,982 3,160 32,221 8,227 24,316 36,844
sale of investment
Unrealised gain/(loss) (31,668) 377,898 3,131,162 (1,263,820) (174,737) (9,398) (94,595) (64,193) 82,910 (100,024)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 1,890,487 1,210,583 6,582,249 948,797 214,892 10,667 98,341 86,736 749,171 629,551
Fund management expenses 205,614 167,234 823,578 145,223 30,726 2,206 13,330 12,135 81,791 111,932
Fund administration expenses - - - - - - - - - 8,295
Other charges F-5 403,523 219,346 1,061,034 10,711 21,815 479 6,978 13,166 67,796 14,331
Service tax/GST 178,700 98,020 546,532 27,608 9,265 462 3,695 4,486 31,375 23,203
Total expenditure (B) 787,837 484,600 2,431,144 183,542 61,806 3,147 24,003 29,787 180,962 157,761
Net income for the year (A-B) 1,102,650 725,983 4,151,105 765,255 153,086 7,520 74,338 56,949 568,209 471,790
Add: Fund revenue account at the 2,527,525 1,843,028 13,010,224 8,575,049 1,243,086 117,252 616,642 1,599,328 2,160,882 3,536,216
beginning of the year
Fund revenue account at the end 3,630,175 2,569,011 17,161,329 9,340,304 1,396,172 124,772 690,980 1,656,277 2,729,091 4,008,006
of the year

206
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Pinnacle Preserver Preserver Preserver Protector Protector Protector Protector Return Return
Fund II Fund Fund III Fund IV Fund Fund II Fund III Fund IV Guarantee Guarantee
Fund IX (10 Fund VIII (10
Yrs) Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
105
Income from investments
Interest income 296,844 274,818 14,272 43,163 421,053 214,690 21,314 342,155 8,665 17,743
Dividend income 19,772 - - - - - - - - -
Profit/(loss) on sale of investment 308,269 11,429 801 1,625 (17,857) 8,399 380 (10,542) 208 215
Profit/(loss) on inter fund transfer/ 30,359 (779) 91 52 4,407 5,973 (123) 3,425 - -
sale of investment
Unrealised gain/(loss) (244,817) (6,532) (383) (1,208) (37,104) (19,606) (1,247) (17,720) (643) (1,813)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 410,427 278,936 14,781 43,632 370,499 209,456 20,324 317,318 8,230 16,145
Fund management expenses 73,536 30,440 1,603 4,708 14,689 22,359 4,505 37,658 1,674 3,175
Fund administration expenses 5,451 - - - 74,648 - - - - -
Other charges F-5 52,170 19,790 735 5,790 22,425 26,556 1,161 46,026 229 423
Service tax/GST 22,529 9,151 404 1,914 20,233 8,711 975 15,641 327 619
Total expenditure (B) 153,686 59,381 2,742 12,412 131,995 57,626 6,641 99,325 2,230 4,217
Net income for the year (A-B) 256,741 219,555 12,039 31,220 238,504 151,830 13,683 217,993 6,000 11,928
Add: Fund revenue account at the 1,936,678 2,992,704 154,836 198,700 6,607,421 2,877,392 341,219 1,807,730 68,756 132,578
beginning of the year
Fund revenue account at the end 2,193,419 3,212,259 166,875 229,920 6,845,925 3,029,222 354,902 2,025,723 74,756 144,506
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Guarantee Fund Builder Fund Guarantee fund
Fund X (10 Fund XI (10 Fund
Yrs) Yrs)
Total
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) LRGF(S4) LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105
Income from investments
Interest income 30,235 1,119 21 41 2 21 18,745 379 4,544 - 18,104,480
Dividend income - - 66,648 99,501 3,462 49,322 716 284 570 - 6,064,053
Profit/(loss) on sale of investment 1,551 99 576,438 739,642 31,385 358,118 17,184 4,822 9,989 - 32,501,754
Profit/(loss) on inter fund transfer/ (72) - 132,983 74,334 5,288 98,459 1,570 5 13 - 6,881,895
sale of investment
Unrealised gain/(loss) (4,672) (182) (88,270) 105,817 (5,236) (12,394) (11,353) (2,194) (6,039) - 756,321
Income on unclaimed amount of - - - - - - - - - 500,740 500,740
policyholders
Total income (A) 27,042 1,036 687,820 1,019,335 34,901 493,526 26,862 3,296 9,077 500,740 64,809,243
Fund management expenses 5,565 219 121,808 122,646 6,589 62,069 4,342 359 1,913 15,750 9,381,300
Fund administration expenses - - - - - - - - - - 642,535
Other charges F-5 1,249 83 8,753 102,972 1,526 38,518 4,199 146 550 - 9,966,297
Service tax/GST 1,172 52 23,781 39,992 1,399 17,834 1,601 87 424 2,721 4,798,211
Total expenditure (B) 7,986 354 154,342 265,610 9,514 118,421 10,142 592 2,887 18,471 24,788,343
Net income for the year (A-B) 19,056 682 533,478 753,725 25,387 375,105 16,720 2,704 6,190 482,269 40,020,900
Add: Fund revenue account at the 220,084 7,044 4,853,948 3,830,379 387,153 2,175,814 240,611 13,439 42,170 390,569 260,575,365
beginning of the year
Fund revenue account at the end 239,140 7,726 5,387,426 4,584,104 412,540 2,550,919 257,331 16,143 48,360 872,838 300,596,265
of the year

207
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Retirement Retirement Retirement Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Secure Fund SP Balanced Fund II Fund
Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 ERSPBF 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1 105
105 105 105
Income from investments
Interest income 90,690 132,657 39,840 3,432 14,332 191,876 177,293 10 107,459 30,955
Dividend income - 24,744 - 737 635 23,170 21,759 15,570 88,375 8,009
Profit/(loss) on sale of investment 287 83,320 3,588 2,579 7,097 252,173 232,515 195,648 1,035,116 69,549
Profit/(loss) on inter fund transfer/ (265) 9,038 - 161 243 17,140 17,665 25,314 17,634 44,420
sale of investment
Unrealised gain/(loss) (2,396) 28,527 (4,661) 1,137 (1,923) (36,494) (33,187) (100,215) (657,207) (36,069)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 88,316 278,286 38,767 8,046 20,384 447,865 416,045 136,327 591,377 116,864
Fund management expenses 7,069 66,718 8,814 1,684 3,382 45,732 42,196 17,218 101,051 23,047
Fund administration expenses - - - - - 57,347 - - - -
Other charges F-5 - 24,890 4,971 136 5,030 16,931 5,676 (1,228) (12,778) 7,343
Service tax/GST 1,227 20,063 3,198 317 1,310 21,184 8,322 2,910 16,702 5,329
Total expenditure (B) 8,296 111,671 16,983 2,137 9,722 141,194 56,194 18,900 104,975 35,719
Net income for the year (A-B) 80,020 166,615 21,784 5,909 10,662 306,671 359,851 117,427 486,402 81,145
Add: Fund revenue account at the 103,043 318,441 64,676 9,449 255,538 4,293,039 6,292,281 568,274 3,206,864 592,519
beginning of the year
Fund revenue account at the end 183,063 485,056 86,460 15,358 266,200 4,599,710 6,652,132 685,701 3,693,266 673,664
of the year

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Flexi Pension Flexi Pension Flexi Pension Pension Pension Pension Pension Pension Multi Pension Multi
Balanced Growth Fund Growth Fund II Growth Fund Income Fund Maximiser Fund Maximiser Money Market Cap Balanced Cap Growth
Fund II Fund II Fund Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 105 PFlexiGro1 PFlexiGro2 PGROWTH 105 PIncome 105 PMaximis1 PMaximis2 PMoneyMkt PMCapBal 105 PMCapGro
105 105 105 105 105 105
Income from investments
Interest income 25,632 521 195 7 415,092 1,381 779 130,187 42,872 403
Dividend income 7,404 248,177 179,756 6,049 - 79,897 160,652 - 12,591 150,780
Profit/(loss) on sale of investment 76,939 3,290,396 2,699,149 39,929 17,325 557,615 1,133,122 2,916 94,760 1,340,059
Profit/(loss) on inter fund transfer/ 45,064 1,791,053 1,638,674 11,190 7,354 62,916 425,851 (3,117) 40,878 661,797
sale of investment
Unrealised gain/(loss) (52,026) (2,367,411) (2,309,733) (9,363) (66,514) (48,567) (333,150) (527) (21,333) (463,386)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 103,013 2,962,736 2,208,041 47,812 373,257 653,242 1,387,254 129,459 169,768 1,689,653
Fund management expenses 8,878 439,117 209,487 5,663 74,591 56,597 167,160 14,362 21,854 157,445
Fund administration expenses - - - - - 71,035 - - - -
Other charges F-5 887 136,922 23,497 4,246 (3,534) 7,777 13,017 (276) (632) (6,332)
Service tax/GST 1,744 99,205 40,396 1,909 12,978 23,956 31,144 2,525 3,788 27,252
Total expenditure (B) 11,509 675,244 273,380 11,818 84,035 159,365 211,321 16,611 25,010 178,365
Net income for the year (A-B) 91,504 2,287,492 1,934,661 35,994 289,222 493,877 1,175,933 112,848 144,758 1,511,288
Add: Fund revenue account at the 1,042,325 16,712,338 22,129,696 184,995 1,988,710 7,028,368 22,798,575 1,011,221 933,326 7,306,065
beginning of the year
Fund revenue account at the end 1,133,829 18,999,830 24,064,357 220,989 2,277,932 7,522,245 23,974,508 1,124,069 1,078,084 8,817,353
of the year

208
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Pension Pension Pension Pension Pension Pension Pension Pension Pension
Multiplier Multiplier Opportunities Preserver Protector Fund Protector Return Return Return Return
Fund Fund II Fund Fund Fund II Guarantee Guarantee Guarantee Guarantee
Fund IX (10 Fund VIII Fund X (10 Fund XI (10
Yrs) Yrs) Yrs)
ULIF 043 ULIF 045 ULIF 092 ULIF 011 ULIF 006 ULIF 017 ULIF 108 ULIF 102 ULIF 113 ULIF 122
25/02/08 25/02/08 11/01/10 17/05/04 03/05/02 17/05/04 22/12/10 12/10/10 13/01/11 19/04/11
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105 PRGF(S3) 105 PRGF(S4) 105
Income from investments
Interest income 31 14 12 349,550 908,491 319,631 3,245 11,807 6,134 1,080
Dividend income 47,278 21,473 37,794 - - - - - - -
Profit/(loss) on sale of investment 630,087 274,187 435,300 12,295 (29,784) 15,773 (24) 511 609 (3)
Profit/(loss) on inter fund transfer/ 109,327 46,194 57,389 (432) 38,802 6,905 - 478 - -
sale of investment
Unrealised gain/(loss) (344,326) (142,955) (130,986) (8,133) (121,133) (58,215) (321) (1,512) (1,045) (99)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 442,397 198,913 399,509 353,280 796,376 284,094 2,900 11,284 5,698 978
Fund management expenses 86,624 26,316 41,006 38,591 30,990 31,719 563 2,152 1,229 201
Fund administration expenses - - - - 158,383 - - - - -
Other charges F-5 28,597 3,497 (1,767) 30,959 84,797 8,675 - 5 4 4
Service tax/GST 19,795 5,197 7,102 11,932 47,465 6,882 97 372 212 35
Total expenditure (B) 135,016 35,010 46,341 81,482 321,635 47,276 660 2,529 1,445 240
Net income for the year (A-B) 307,381 163,903 353,168 271,798 474,741 236,818 2,240 8,755 4,253 738
Add: Fund revenue account at the 2,602,383 1,765,754 2,262,038 3,333,993 7,712,776 4,595,428 23,677 76,388 52,494 5,880
beginning of the year
Fund revenue account at the end 2,909,764 1,929,657 2,615,206 3,605,791 8,187,517 4,832,246 25,917 85,143 56,747 6,618
of the year

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension Fund
ULIF 052 17/03/08 PRICH1 105 ULIF 053 17/03/08 PRICH2 105 ULIF 128 01/12/11 PSECURE ULIF 009 17/11/03 PSecPlus Total
105 105
Income from investments
Interest income 185 32 80,962 8,108 3,094,895
Dividend income 158,658 92,810 - 294 1,386,612
Profit/(loss) on sale of investment 1,835,487 1,046,910 2,802 7,110 15,365,342
Profit/(loss) on inter fund transfer/ 463,175 238,890 690 34 5,774,462
sale of investment
Unrealised gain/(loss) (781,409) (410,870) (8,671) (5,430) (8,529,603)
Income on unclaimed amount of - - - - -
policyholders
Total income (A) 1,676,096 967,772 75,783 10,116 17,091,708
Fund management expenses 287,278 112,459 16,343 1,793 2,149,329
Fund administration expenses - - - - 286,765
Other charges F-5 89,985 16,995 12,347 1,392 502,033
Service tax/GST 64,839 22,788 5,481 603 518,259
Total expenditure (B) 442,102 152,242 34,171 3,788 3,456,386
Net income for the year (A-B) 1,233,994 815,530 41,612 6,328 13,635,322
Add: Fund revenue account at the 11,688,259 10,109,559 156,368 103,399
beginning of the year
Fund revenue account at the end 12,922,253 10,925,089 197,980 109,727 154,963,461
of the year

209
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Health Funds
Particulars Schedule Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Health Preserver Health Protector Fund
Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Income from investments
Interest income 15,225 14,701 20 6 4,952 122,415 157,319
Dividend income 1,808 3,948 62,860 7,486 - - 76,102
Profit/(loss) on sale of investment 15,168 26,838 474,301 79,429 197 (1,146) 594,787
Profit/(loss) on inter fund transfer/ 238 19,359 258,051 5,547 3 7,256 290,454
sale of investment
Unrealised gain/(loss) 5,727 (2,881) (58,234) (30,907) (64) (17,048) (103,407)
Income on unclaimed amount of - - - - - - -
policyholders
Total income (A) 38,166 61,965 736,998 61,561 5,088 111,477 1,015,255
Fund management expenses 3,937 5,510 83,362 9,445 532 13,247 116,033
Fund administration expenses - - - - - - -
Other charges F-5 39,140 57,955 524,356 58,247 6,713 179,671 866,082
Service tax/GST 7,233 10,531 104,982 11,809 1,249 32,995 168,799
Total expenditure (B) 50,310 73,996 712,700 79,501 8,494 225,913 1,150,914
Net income for the year (A-B) (12,144) (12,031) 24,298 (17,940) (3,406) (114,436) (135,659)
Add: Fund revenue account at the (142,715) (209,357) (1,924,840) (242,081) (27,977) (734,534)
beginning of the year
Fund revenue account at the end (154,859) (221,388) (1,900,542) (260,021) (31,383) (848,970) (3,417,163)
of the year

(` in ‘000)
Linked Group Life Funds
Particulars Schedule Group Balanced Fund Group Balanced Group Capital Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Fund II Guarantee Short Term
Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
Income from investments
Interest income 662,159 739,080 1,905 399,064 206,995 4 54,969
Dividend income 37,657 30,386 - - - 438 29,004
Profit/(loss) on sale of investment 129,737 116,595 126 (3,454) (1,088) 2,052 182,792
Profit/(loss) on inter fund transfer/ 296,068 19,853 15 70,314 (59) 202 561,010
sale of investment
Unrealised gain/(loss) (316,528) (55,057) (47) (123,005) (27,297) (110) (582,570)
Income on unclaimed amount of - - - - - - -
policyholders
Total income (A) 809,093 850,857 1,999 342,919 178,551 2,586 245,205
Fund management expenses 145,291 161,115 369 70,757 38,405 410 31,103
Fund administration expenses - - - - - - -
Other charges F-5 (106,629) (144,629) (201) (41,351) (30,582) (290) (24,047)
Service tax/GST 25,034 27,857 63 12,179 6,667 71 5,356
Total expenditure (B) 63,696 44,343 231 41,585 14,490 191 12,412
Net income for the year (A-B) 745,397 806,514 1,768 301,334 164,061 2,395 232,793
Add: Fund revenue account at the 12,807,811 1,349,786 109,908 7,985,311 456,098 4,254 6,000,815
beginning of the year
Fund revenue account at the end 13,553,208 2,156,300 111,676 8,286,645 620,159 6,649 6,233,608
of the year

210
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Group Life Funds
Particulars Schedule Group Growth Fund II Group Leave Encashment Group Leave Encashment Group Short Term Debt Group Short Term Debt
Balance Fund Income Fund Fund Fund III
Total
ULGF 042 30/04/13 ULGF 013 02/04/08 ULGF 014 02/04/08 ULGF 003 03/04/03 ULGF 039 30/04/13
GGrowth2 105 GLEBal 105 GLEIncome 105 GSTDebt 105 GSTDebt3 105
Income from investments
Interest income 5,390 57,400 9,022 86,362 23,616 2,245,966
Dividend income 1,629 2,951 - - - 102,065
Profit/(loss) on sale of investment 6,673 14,820 629 3,654 1,277 453,813
Profit/(loss) on inter fund transfer/ 573 3,143 208 1,090 (230) 952,187
sale of investment
Unrealised gain/(loss) 1,707 (8,331) (1,271) (3,526) (480) (1,116,515)
Income on unclaimed amount of - - - - - -
policyholders
Total income (A) 15,972 69,983 8,588 87,580 24,183 2,637,516
Fund management expenses 2,529 13,256 1,748 16,439 4,640 486,062
Fund administration expenses - - - - - -
Other charges F-5 (1,702) (10,486) (1,091) (9,383) (2,932) (373,323)
Service tax/GST 438 2,289 302 2,825 796 83,877
Total expenditure (B) 1,265 5,059 959 9,881 2,504 196,616
Net income for the year (A-B) 14,707 64,924 7,629 77,699 21,679 2,440,900
Add: Fund revenue account at the 17,549 570,722 71,094 4,005,700 42,033 33,421,081
beginning of the year
Fund revenue account at the end 32,256 635,646 78,723 4,083,399 63,712 35,861,981
of the year

(` in ‘000)
Linked Group Pension Funds
Particulars Schedule Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Guarantee Guarantee Debt Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Balanced Debt Fund Debt Fund II Fund III Growth Fund Growth Fund II Growth Short Term
Fund II Fund III Fund III Debt Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105
Income from investments
Interest income 5,545 116,723 170,044 1,684 50,834 71,820 1,785 9,788 5,995 312,166
Dividend income 283 5,725 7,399 - - - 276 1,318 770 -
Profit/(loss) on sale of investment 2,535 41,119 30,748 522 5,369 5,166 1,751 6,900 2,440 12,486
Profit/(loss) on inter fund transfer/ 379 8,795 1,088 - 1,090 - 295 948 602 (256)
sale of investment
Unrealised gain/(loss) (1,676) (31,646) (7,037) 27 (9,762) (8,037) (414) (685) 466 (9,202)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 7,066 140,716 202,242 2,233 47,531 68,949 3,693 18,269 10,273 315,194
Fund management expenses 2,155 33,973 41,821 465 11,386 15,282 1,270 4,824 1,987 66,758
Fund administration expenses - - - - - - - - - -
Other charges F-5 (893) (18,790) (31,515) (321) (5,609) (8,790) (452) (2,046) (1,341) (47,479)
Service tax/GST 372 5,854 7,256 81 1,952 2,651 219 832 346 11,527
Total expenditure (B) 1,634 21,037 17,562 225 7,729 9,143 1,037 3,610 992 30,806
Net income for the year (A-B) 5,432 119,679 184,680 2,008 39,802 59,806 2,656 14,659 9,281 284,388
Add: Fund revenue account at the 114,124 1,247,485 297,761 12,233 748,177 72,525 22,879 63,613 7,054 2,155,520
beginning of the year
Fund revenue account at the end 119,556 1,367,164 482,441 14,241 787,979 132,331 25,535 78,272 16,335 2,439,908
of the year

211
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Form A-RA(UL)
(` in ‘000)
Linked Group Pension Funds
Particulars Schedule Group Capital Group SA Group SA Group SA Debt Group SA Group SA Short Group Short
Guarantee Balanced Fund Capital Fund Growth Fund Term Debt Fund Term Debt
Short Term Debt Guarantee Short Fund II
Grand Total
Fund III Term Debt Fund Total
ULGF 047 ULGF 051 ULGF 052 ULGF 053 ULGF 054 ULGF 055 ULGF 046
27/08/13 03/04/03 GSBLN 03/04/03 GSDBT 03/04/03 GSSTD 30/10/03 GSGF 24/02/04 27/08/13
GCGSTDebt3 105 105 105 105 105 GSCGSTD 105 GSTDebt2 105
Income from investments
Interest income 73,146 419,479 5,991 413,114 131,568 116,309 904 1,906,895 25,509,555
Dividend income - 17,302 - - 36,862 - - 69,935 7,698,767
Profit/(loss) on sale of investment 1,870 17,908 314 (15,080) 101,269 4,153 38 219,508 49,135,204
Profit/(loss) on inter fund transfer/ 124 6,935 (3) 285 13,697 (136) - 33,843 13,932,841
sale of investment
Unrealised gain/(loss) (2,100) 17,355 (130) (45,519) 116,251 (2,240) (16) 15,635 (8,977,569)
Income on unclaimed amount of - - - - - - - - 500,740
policyholders
Total income (A) 73,040 478,979 6,172 352,800 399,647 118,086 926 2,245,816 87,799,538
Fund management expenses 15,118 90,566 1,095 73,467 56,862 22,331 193 439,553 12,572,277
Fund administration expenses - - - - - - - - 929,300
Other charges F-5 (10,724) (65,765) (812) (42,159) (37,394) (14,806) (33) (288,929) 10,672,160
Service tax/GST 2,613 15,672 189 12,691 9,842 3,844 33 75,974 5,645,120
Total expenditure (B) 7,007 40,473 472 43,999 29,310 11,369 193 226,598 29,818,857
Net income for the year (A-B) 66,033 438,506 5,700 308,801 370,337 106,717 733 2,019,218 57,980,681
Add: Fund revenue account at the 146,413 - - - - - 101,012 4,988,796 298,985,242
beginning of the year
Fund revenue account at the end 212,446 438,506 5,700 308,801 370,337 106,717 101,745 7,008,014 356,965,923
of the year

212
schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2018
(` in ‘000)
Linked Life Funds
Particulars Active Asset Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E
Allocation Fund Fund II Fund III Fund IV Fund - Life Fund
Balanced Fund
ULIF 138 ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097
15/02/17 28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10
AAABF 105 LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105
Policy administration charge 92,090 - - 6,389 320 2,689 52,386 4,507 - 53,157
Surrender charge - - - 237 - - - 22,107 - -
Switching charge 1 - 32 9 1 1 74 - - 24
Mortality charge 160,979 11 23,798 12,297 889 4,675 79,392 16,789 (31) 104,074
Rider premium charge 368 - 5,209 5,656 - 45 1,793 - - 5,069
Partial withdrawal charge - - - - - - - - - -
Discontinued charges 188 - - - - - 4,532 - 729 (60)
Policy foreclosure charges - - (151) 4 - - - 77 (73) (37)
Miscellaneous charges 6 (1) (3,637) (290) - (328) (353) - *4,409 (2,105)
Total 253,632 10 25,251 24,302 1,210 7,082 137,824 43,480 5,034 160,122
*includes ` 4,409 thousands of policy cancellation charges on account of null and void.

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Flexi Balanced Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund
Fund Fund II Fund III Fund IV Fund Fund II Fund III Fund IV Fund B
ULIF 031 ULIF 032 ULIF 033 ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089
20/03/07 20/03/07 20/03/07 27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09
LFlexiBal1 105 LFlexiBal2 105 LFlexiBal3 105 LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105
Policy administration charge - 2,377 76 858 - 41,687 1,751 31,673 144,336 432,565
Surrender charge - - - - - 112 - - - -
Switching charge 19 6 2 4 98 28 8 27 2 294
Mortality charge 2,232 3,806 197 1,546 27,602 54,085 2,333 40,275 527,002 655,774
Rider premium charge 410 2,237 - 29 5,540 27,999 - 1,442 - 10,149
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - (368) 12,404
Policy foreclosure charges - - - - (534) (95) - (36) - (18)
Miscellaneous charges (253) (8) - (241) (2,132) (49) - (9,521) 124 (2,066)
Total 2,408 8,418 275 2,196 30,574 123,767 4,092 63,860 671,096 1,109,102

(` in ‘000)
Linked Life Funds
Particulars Invest Shield Invest Shield Life Growth Life Secure Maximise India Maximiser Maximiser Maximiser Maximiser Maximiser
Cash Fund Fund - Life Fund Fund Fund Fund Fund II Fund III Fund IV Fund V
ULIF 020 ULIF 018 ULIF 134 ULIF 135 ULIF 136 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114
03/01/05 03/01/05 19/09/13 LGF 19/09/13 LSF 11/20/14 MIF 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11
LInvCash 105 LInvShld 105 105 105 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105
Policy administration charge 20,919 2,231 165,377 134,713 17,455 (1) 19,828 2,401 1,055 1,588,284
Surrender charge 20,494 5,900 - - - - 970 - - 3
Switching charge - - - - 2 181 52 10 6 315
Mortality charge 38,732 2,056 174,859 168,276 26,309 74,607 42,297 4,063 1,901 2,385,635
Rider premium charge 46 380 - - 15,362 19,706 14,275 - 133 26,793
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - 20,085 15,431 1,631 - - - - 140,070
Policy foreclosure charges 93 (8) - - - (682) (6) - (6) (53)
Miscellaneous charges 213 1,146 535 524 122 (13,174) (1,162) - (1,846) 1,544
Total 80,497 11,705 360,856 318,944 60,881 80,637 76,254 6,474 1,243 4,142,591

(` in ‘000)
Linked Life Funds
Particulars Money Market Multi Cap Multi Cap Multiplier Fund Multiplier Multiplier Multiplier New Invest Opportunities Pinnacle Fund
Fund Balanced Fund Growth Fund Fund II Fund III Fund IV Shield Balanced Fund
Fund
ULIF 090 ULIF 088 ULIF 085 ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 025 ULIF 086 ULIF 081
24/11/09 24/11/09 24/11/09 22/11/07 25/02/08 25/02/08 25/02/08 21/08/06 24/11/09 26/10/09
LMoneyMkt LMCapBal 105 LMCapGro 105 LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LInvShldNw LOpport 105 LPinnacle 105
105 105
Policy administration charge 157,856 80,901 405,107 - 6,723 216 2,573 4,743 24,677 (66)
Surrender charge - - - - - - - 3,507 - -
Switching charge 596 133 382 33 13 1 2 - 31 -
Mortality charge 236,663 131,116 624,692 9,629 9,904 262 5,100 5,170 41,209 14,886
Rider premium charge 3,658 2,637 16,942 1,876 5,188 - 195 - 1,759 -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges 5,046 4,810 18,829 - - - - - 921 -
Policy foreclosure charges (18) (61) (78) (155) - - - (254) (112) (489)
Miscellaneous charges (278) (190) (4,840) (672) (13) - (892) - (689) -
Total 403,523 219,346 1,061,034 10,711 21,815 479 6,978 13,166 67,796 14,331

213
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2018
(` in ‘000)
Linked Life Funds
Particulars Pinnacle Preserver Fund Preserver Preserver Protector Fund Protector Protector Protector Return Return
Fund II Fund III Fund IV Fund II Fund III Fund IV Guarantee Fund Guarantee Fund
IX (10 Yrs) VIII (10 Yrs)
ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003 ULIF 016 ULIF 024 ULIF 041 ULIF 107 ULIF 104
26/10/10 17/05/04 13/03/06 27/08/07 22/10/01 17/05/04 13/03/06 27/08/07 22/12/10 12/10/10
LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105 LProtect2 105 LProtect3 105 LProtect4 105 LRGF(S2) 105 LRGF(S1) 105
Policy administration charge 9,948 2,757 189 2,085 - 5,873 336 20,493 3 3
Surrender charge - 9 - - - 147 - - - -
Switching charge - 302 13 28 123 27 12 21 - -
Mortality charge 42,264 13,721 533 4,095 19,775 16,135 813 29,667 225 417
Rider premium charge - 3,537 - 75 3,640 5,179 - 832 1 3
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - 4 - - (114) - - (14) - -
Miscellaneous charges (42) (540) - (493) (999) (805) - (4,973) - -
Total 52,170 19,790 735 5,790 22,425 26,556 1,161 46,026 229 423

(` in ‘000)
Linked Life Funds
Particulars Return Return RICH Fund RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Guarantee Guarantee Fund Builder Fund Guarantee fund
Fund X (10 Fund XI (10 Fund
Yrs) Yrs)
Total
ULIF 112 ULIF 121 ULIF 048 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137
13/01/11 19/04/11 17/03/08 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LRGF(S3) 105 LRGF(S4) 105 LRICH1 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Policy administration charge 18 20 - 39,007 697 15,517 540 146 550 - 3,600,035
Surrender charge - - - - - - 2,403 - - - 55,889
Switching charge - - 19 6 3 8 - - - - 2,949
Mortality charge 1,225 60 8,376 39,868 826 23,239 1,256 - - - 5,917,586
Rider premium charge 6 3 1,623 24,488 - 711 - - - - 214,994
Partial withdrawal charge - - - - - - - - - - -
Discontinued charges - - - - - - - - - - 224,248
Policy foreclosure charges - - (15) (395) - - - - - - (3,226)
Miscellaneous charges - - (1,250) (2) - (957) - - - - (46,178)
Total 1,249 83 8,753 102,972 1,526 38,518 4,199 146 550 - 9,966,297

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund-Pension Retirement Retirement Retirement SP Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Secure Fund Balanced Fund Fund
ULIF 101 ULIF 132 ULIF 133 ULIF 136 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 02/11/12 ERSF 25/03/13 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 105 ERSPBF 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Policy administration charge - 23,089 4,548 136 599 11,096 4,458 (190) (1,405) 4,094
Surrender charge - - - - 3,321 5,635 856 - - 2,214
Switching charge - 1 2 - - 12 12 23 27 16
Mortality charge - - - - 205 417 376 98 698 10
Rider premium charge - - - - 42 290 180 - - 6
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - 1,800 421 - - - - - - -
Policy foreclosure charges - - - - - (519) (23) (488) (5,982) 1,003
Miscellaneous charges - - - - 863 - (183) (671) (6,116) -
Total - 24,890 4,971 136 5,030 16,931 5,676 (1,228) (12,778) 7,343

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Flexi Pension Pension Pension Pension Pension Money Pension Multi Pension Multi
Balanced Growth Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Market Fund Cap Balanced Cap Growth
Fund II Fund Fund II Fund Fund
ULIF 035 ULIF 029 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
20/03/07 20/03/07 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PFlexiBal2 105 PFlexiGro1 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Policy administration charge 972 83,041 21,133 2,137 (75) 3,211 10,647 (3) - (506)
Surrender charge - 52,832 650 - - 3,318 1,841 - - -
Switching charge 7 120 51 - 42 27 47 111 18 81
Mortality charge 156 64 2,994 2,123 783 779 591 223 104 1,440
Rider premium charge 40 49 730 - - 627 582 - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - (14) - 1 - - - -
Policy foreclosure charges (199) 816 (521) - (256) (188) (691) (1) - (999)
Miscellaneous charges (89) - (1,540) - (4,028) 2 - (606) (754) (6,348)
Total 887 136,922 23,497 4,246 (3,534) 7,777 13,017 (276) (632) (6,332)

214
schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2018
(` in ‘000)
Linked Pension Funds
Particulars Pension Pension Pension Pension Pension Pension Pension Return Pension Return Pension Return Pension Return
Multiplier Fund Multiplier Opportunities Preserver Fund Protector Fund Protector Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund
Fund II Fund Fund II IX (10 Yrs) VIII X (10 Yrs) XI (10 Yrs)
ULIF 043 ULIF 045 ULIF 092 ULIF 011 ULIF 006 ULIF 017 ULIF 108 ULIF 102 ULIF 113 ULIF 122
25/02/08 25/02/08 11/01/10 17/05/04 03/05/02 17/05/04 22/12/10 12/10/10 13/01/11 19/04/11
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105 PProtect1 105 PProtect2 105 PRGF(S2) 105 PRGF(S1) 105 PRGF(S3) 105 PRGF(S4) 105
Policy administration charge 17,550 2,924 (49) 18,133 54,975 6,264 - 5 4 3
Surrender charge 11,000 - - 12,368 29,269 1,675 - - - 1
Switching charge 29 16 13 219 81 52 - - - -
Mortality charge 9 573 285 290 461 1,438 - - - -
Rider premium charge 9 108 - 68 296 128 - - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - - (484) - (284) 291 - - - -
Miscellaneous charges - (124) (1,532) (119) (1) (1,173) - - - -
Total 28,597 3,497 (1,767) 30,959 84,797 8,675 - 5 4 4

(` in ‘000)
Linked Pension Funds
Particulars Pension RICH Fund Pension RICH Fund II Pension Secure Fund Secure Plus Pension Fund
ULIF 052 17/03/08 PRICH1 105 ULIF 053 17/03/08 PRICH2 105 ULIF 128 01/12/11 PSECURE ULIF 009 17/11/03 PSecPlus Total
105 105
Policy administration charge 56,247 15,741 6,176 157 345,112
Surrender charge 33,701 - - 1,022 159,703
Switching charge 31 15 - - 1,053
Mortality charge - 2,046 6,197 213 22,573
Rider premium charge - 561 - - 3,716
Partial withdrawal charge - - - - -
Discontinued charges - - (26) - 2,182
Policy foreclosure charges 6 (1,028) - - (9,547)
Miscellaneous charges - (340) - - (22,759)
Total 89,985 16,995 12,347 1,392 502,033

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Policy administration charge 3,433 5,071 47,984 5,352 615 15,516 77,971
Surrender charge - - - - - - -
Switching charge 2 1 7 9 11 7 37
Mortality charge 33,532 48,905 465,003 52,289 5,918 158,074 763,721
Rider premium charge - - - - - - -
Partial withdrawal charge - - - - - - -
Discontinued charges - - - - - - -
Policy foreclosure charges 1,897 3,789 10,066 549 169 5,331 21,801
Miscellaneous charges 276 189 1,296 48 - 743 2,552
Total 39,140 57,955 524,356 58,247 6,713 179,671 866,082

Particulars
Policy administration charge
Surrender charge
Switching charge
Mortality charge
Rider premium charge
Partial withdrawal charge
Discontinued charges
Policy foreclosure charges
Miscellaneous charges
Total
(` in ‘000)
Linked Group Life Funds
Group Balanced Fund Group Balanced Fund II Group Capital Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund
Guarantee Short Term
Debt Fund
ULGF 001 03/04/03 ULGF 041 30/04/13 ULGF 005 24/02/04 ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03
GBalancer 105 GBalancer2 105 GCGSTDebt1 105 GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
(106,629) (144,629) (201) (41,351) (30,582) (290) (24,047)
(106,629) (144,629) (201) (41,351) (30,582) (290) (24,047)

215
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2018
(` in ‘000)
Linked Group Life Funds
Particulars Group Growth Fund II Group Leave Encashment Group Leave Encashment Group Short Term Debt Group Short Term Debt
Balance Fund Income Fund Fund Fund III
Total
ULGF 042 30/04/13 ULGF 013 02/04/08 GLEBal ULGF 014 02/04/08 ULGF 003 03/04/03 ULGF 039 30/04/13
GGrowth2 105 105 GLEIncome 105 GSTDebt 105 GSTDebt3 105
Policy administration charge - - - - - -
Surrender charge - - - - - -
Switching charge - - - - - -
Mortality charge - - - - - -
Rider premium charge - - - - - -
Partial withdrawal charge - - - - - -
Discontinued charges - - - - - -
Policy foreclosure charges - - - - - -
Miscellaneous charges (1,702) (10,486) (1,091) (9,383) (2,932) (373,323)
Total (1,702) (10,486) (1,091) (9,383) (2,932) (373,323)

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital
Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Guarantee Guarantee Guarantee
Balanced Fund Balanced Balanced Fund Fund II Fund III Growth Fund Growth Fund II Growth Fund III Short Term Debt
Fund II Fund III Fund II
ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 012 ULGF 050 ULGF 009
03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 05/07/07 27/08/13 16/03/07
GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GCGGrowth2 GCGGrowth3 GCGSTDebt2
105 105 105 105
Policy administration charge - - - - - - - - - -
Surrender charge - - - - - - - - - -
Switching charge - - - - - - - - - -
Mortality charge - - - - - - - - - -
Rider premium charge - - - - - - - - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - - - - - - - - - -
Miscellaneous charges (893) (18,790) (31,515) (321) (5,609) (8,790) (452) (2,046) (1,341) (47,479)
Total (893) (18,790) (31,515) (321) (5,609) (8,790) (452) (2,046) (1,341) (47,479)

(` in ‘000)
Linked Group Pension Funds
Particulars Group Capital Group SA Group SA Capital Group SA Debt Group SA Growth Group SA Short Group Short Term
Guarantee Short Balanced Fund Guarantee Short Fund Fund Term Debt Fund Debt Fund II
Term Debt Fund III Term Debt Fund Grand Total
Total
ULGF 047 ULGF 051 ULGF 052 ULGF 053 ULGF 054 ULGF 055 ULGF 046
27/08/13 03/04/03 GSBLN 03/04/03 GSDBT 03/04/03 GSSTD 30/10/03 GSGF 24/02/04 27/08/13
GCGSTDebt3 105 105 105 105 105 GSCGSTD 105 GSTDebt2 105
Policy administration charge - - - - - - - - 4,023,118
Surrender charge - - - - - - - - 215,592
Switching charge - - - - - - - - 4,039
Mortality charge - - - - - - - - 6,703,880
Rider premium charge - - - - - - - - 218,710
Partial withdrawal charge - - - - - - - - -
Discontinued charges - - - - - - - - 226,430
Policy foreclosure charges - - - - - - - - 9,028
Miscellaneous charges (10,724) (65,765) (812) (42,159) (37,394) (14,806) (33) (288,929) (728,637)
Total (10,724) (65,765) (812) (42,159) (37,394) (14,806) (33) (288,929) 10,672,160

216
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105 LFlexiBal1 105
Income from investments
Interest income 1,134 467,079 159,654 9,817 45,447 475 200,728 2,781,536 116,277 31,282
Dividend income - 61,070 21,114 1,425 5,881 75,210 - - 318,875 7,925
Profit/(loss) on sale of investment 62 688,608 239,733 13,906 65,341 357,514 137,783 12,221 4,861,777 92,909
Profit/(loss) on inter fund transfer/ 8 23,661 4,105 180 1,286 7,165 1,485 - 14,231 18,199
sale of investment
Unrealised gain/(loss) (31) 404,801 147,597 12,252 44,251 727,438 (3,154) (12,275) (992,368) 32,276
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 1,173 1,645,219 572,203 37,580 162,206 1,167,802 336,842 2,781,482 4,318,792 182,591
Fund management expenses 147 105,276 36,845 5,484 10,399 83,349 34,391 189,118 330,347 24,861
Fund administration expenses - 131,837 - - - - - - - -
Other charges F-5 128 29,575 26,357 1,400 8,407 123,587 45,302 (4,048) 245,063 2,953
Service tax 65 41,919 9,801 1,031 2,854 37,569 13,007 27,615 88,218 4,377
Total expenditure (B) 340 308,607 73,003 7,915 21,660 244,505 92,700 212,685 663,628 32,191
Net income for the year (A-B) 833 1,336,612 499,200 29,665 140,546 923,297 244,142 2,568,797 3,655,164 150,400
Add: Fund revenue account at the 2,008 13,999,291 4,536,394 356,819 388,144 392,849 1,141,668 4,354,441 4,126,110 753,183
beginning of the year
Fund revenue account at the end 2,841 15,335,903 5,035,594 386,484 528,690 1,316,146 1,385,810 6,923,238 7,781,274 903,583
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt LMCapBal 105 LMCapGro 105
105
Income from investments
Interest income 24,558 1,315 57,552 14,878 157 38 319,288 1,693,291 230,062 40,051
Dividend income 6,346 368 571,458 163,157 22,062 7,326 1,537,963 - 51,738 453,216
Profit/(loss) on sale of investment 58,634 3,632 4,263,297 1,037,272 136,076 46,878 3,161,790 91,900 271,986 1,200,158
Profit/(loss) on inter fund transfer/ 8,701 434 462,082 12,418 5,164 2,235 4,429 - 2,364 15,985
sale of investment
Unrealised gain/(loss) 45,530 2,588 2,568,186 997,219 144,022 47,208 16,164,231 4,273 785,421 6,286,485
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 143,769 8,337 7,922,575 2,224,944 307,481 103,685 21,187,701 1,789,464 1,341,571 7,995,895
Fund management expenses 8,688 1,136 414,611 176,794 36,526 8,130 1,640,786 169,013 104,101 485,455
Fund administration expenses - - 518,810 - - - - - - -
Other charges F-5 9,484 302 105,871 92,326 7,839 4,944 3,290,250 451,085 161,135 569,331
Service tax 2,797 213 162,464 40,804 6,595 2,010 1,090,268 158,921 57,060 209,120
Total expenditure (B) 20,969 1,651 1,201,756 309,924 50,960 15,084 6,021,304 779,019 322,296 1,263,906
Net income for the year (A-B) 122,800 6,686 6,720,819 1,915,020 256,521 88,601 15,166,397 1,010,445 1,019,275 6,731,989
Add: Fund revenue account at the 405,361 48,073 56,910,989 14,617,408 2,636,596 426,613 (2,201,492) 1,517,080 823,753 6,278,235
beginning of the year
Fund revenue account at the end 528,161 54,759 63,631,808 16,532,428 2,893,117 515,214 12,964,905 2,527,525 1,843,028 13,010,224
of the year

217
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Multiplier Fund Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund II Fund III Fund IV Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund
VIII (10 Yrs) IX (10 Yrs) X (10 Yrs) XI (5 Yrs) XI (10 Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Income from investments
Interest income 1,022 239 10 82 19,585 11,222 41,442 3,252 1,541 267
Dividend income 95,058 25,184 1,367 11,219 - - - - - 61,643
Profit/(loss) on sale of investment 810,583 200,865 11,833 91,910 1,389 1,216 2,428 671 207 662,687
Profit/(loss) on inter fund transfer/ 21,399 5,510 3,056 2,548 1,308 1,392 1,655 (452) 102 64,348
sale of investment
Unrealised gain/(loss) 508,153 147,792 4,952 63,387 481 385 2,708 509 140 254,804
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 1,436,215 379,590 21,218 169,146 22,763 14,215 48,233 3,980 1,990 1,043,749
Fund management expenses 167,858 29,896 2,394 13,243 3,586 2,129 7,254 727 283 121,040
Fund administration expenses - - - - - - - - - -
Other charges F-5 12,256 24,133 582 8,986 435 300 1,921 (88) 139 6,695
Service tax 28,558 8,288 442 3,317 595 362 1,300 122 63 21,060
Total expenditure (B) 208,672 62,317 3,418 25,546 4,616 2,791 10,475 761 485 148,795
Net income for the year (A-B) 1,227,543 317,273 17,800 143,600 18,147 11,424 37,758 3,219 1,505 894,954
Add: Fund revenue account at the 7,347,506 925,813 99,452 473,042 114,431 57,332 182,326 429,478 5,539 3,958,994
beginning of the year
Fund revenue account at the end 8,575,049 1,243,086 117,252 616,642 132,578 68,756 220,084 432,697 7,044 4,853,948
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105 LInvCash 105 LInvShld 105 105
Income from investments
Interest income 9,126 9,909 3,028 - 3,434 3,426,720 3,152,466 386,848 43,191 1,889
Dividend income 2,318 256,899 163,378 11,055 132,087 156,533 - - 2,130 132,035
Profit/(loss) on sale of investment 20,549 2,058,415 971,839 82,881 1,089,288 2,570,416 1,743,721 273,054 52,725 324,750
Profit/(loss) on inter fund transfer/ 3,085 501,510 10,230 6,604 42,743 76,236 42,167 3,555 3,220 -
sale of investment
Unrealised gain/(loss) 17,690 1,353,650 1,536,386 84,824 939,429 548,601 93,620 (6,517) (1,688) 1,380,812
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 52,768 4,180,383 2,684,861 185,364 2,206,981 6,778,506 5,031,974 656,940 99,578 1,839,486
Fund management expenses 3,214 419,098 182,182 18,741 144,666 1,031,328 580,116 66,048 9,575 189,970
Fund administration expenses - - - - - - - - - -
Other charges F-5 2,641 38,985 146,798 4,652 94,796 884,581 1,042,355 108,851 13,451 320,134
Service tax 899 71,954 50,115 3,474 36,554 307,392 424,500 27,029 3,565 122,624
Total expenditure (B) 6,754 530,037 379,095 26,867 276,016 2,223,301 2,046,971 201,928 26,591 632,728
Net income for the year (A-B) 46,014 3,650,346 2,305,766 158,497 1,930,965 4,555,205 2,985,003 455,012 72,987 1,206,758
Add: Fund revenue account at the 130,313 17,976,574 5,990,474 785,842 5,878,781 5,916,653 2,736,016 1,330,492 1,063,429 (448,170)
beginning of the year
Fund revenue account at the end 176,327 21,626,920 8,296,240 944,339 7,809,746 10,471,858 5,721,019 1,785,504 1,136,416 758,588
of the year

218
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Life Funds
Particulars Schedule Life Secure Maximise India New Invest Opportunities Pinnacle Fund Pinnacle Preserver Fund Preserver Preserver Protector Fund
Fund Fund Shield Balanced Fund Fund II Fund III Fund IV
Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105
Income from investments
Interest income 661,321 15 115,557 13,953 497,888 315,444 378,235 16,425 52,205 525,592
Dividend income - 17,318 13,431 64,539 36,043 31,983 - - - -
Profit/(loss) on sale of investment 391,811 26,439 375,888 878,152 401,504 394,075 19,967 1,321 1,996 338,263
Profit/(loss) on inter fund transfer/ 7,044 1,374 14,522 6,659 45,148 15,095 - - 56 5,358
sale of investment
Unrealised gain/(loss) 16,852 222,605 (110,131) 114,934 171,678 115,877 (2,290) 69 12 (19,239)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 1,077,028 267,751 409,267 1,078,237 1,152,261 872,474 395,912 17,815 54,269 849,974
Fund management expenses 169,744 17,400 31,309 75,641 125,943 87,375 37,126 1,667 5,040 17,690
Fund administration expenses - - - - 9,330 6,473 - - - 89,336
Other charges F-5 309,875 64,587 31,734 72,267 20,043 63,637 23,867 793 7,120 25,536
Service tax 112,146 16,483 9,670 25,032 23,138 23,329 9,561 365 1,816 20,891
Total expenditure (B) 591,765 98,470 72,713 172,940 178,454 180,814 70,554 2,825 13,976 153,453
Net income for the year (A-B) 485,263 169,281 336,554 905,297 973,807 691,660 325,358 14,990 40,293 696,521
Add: Fund revenue account at the 96,948 (131,496) 1,262,774 1,255,585 2,562,409 1,245,018 2,667,346 139,846 158,407 5,910,900
beginning of the year
Fund revenue account at the end 582,211 37,785 1,599,328 2,160,882 3,536,216 1,936,678 2,992,704 154,836 198,700 6,607,421
of the year

(` in ‘000)
Linked Life Funds
Particulars Schedule Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 LProtect3 LProtect4 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus LSSavBuil LSSavGtee UNCLAIM
105 105 105 105 105 105 105
Income from investments
Interest income 242,438 22,995 337,545 337 - 138 18,915 466 4,859 - 16,514,220
Dividend income - - - 87,756 3,418 44,974 756 313 596 - 4,657,167
Profit/(loss) on sale of investment 171,572 16,179 228,613 918,537 38,386 469,262 19,801 2,405 5,277 - 32,412,352
Profit/(loss) on inter fund transfer/ 10,444 1,170 1,624 78,500 3,557 30,522 1 - - - 1,595,422
sale of investment
Unrealised gain/(loss) (837) (185) (11,565) 401,356 13,390 214,930 5,956 1,779 5,647 - 35,476,906
Income on unclaimed amount of - - - - - - - - - 403,684 403,684
policyholders
Total income (A) 423,617 40,159 556,217 1,486,486 58,751 759,826 45,429 4,963 16,379 403,684 91,059,751
Fund management expenses 24,581 4,731 34,865 115,325 6,704 58,912 4,098 361 2,018 11,412 7,690,747
Fund administration expenses - - - - - - - - - - 755,786
Other charges F-5 31,826 1,345 52,851 117,095 1,794 43,472 4,522 170 641 - 8,757,069
Service tax 8,510 910 13,354 35,483 1,266 15,553 1,401 79 396 1,703 3,390,007
Total expenditure (B) 64,917 6,986 101,070 267,903 9,764 117,937 10,021 610 3,055 13,115 20,593,609
Net income for the year (A-B) 358,700 33,173 455,147 1,218,583 48,987 641,889 35,408 4,353 13,324 390,569 70,466,142
Add: Fund revenue account at the 2,518,692 308,046 1,352,583 2,611,796 338,166 1,533,925 205,203 9,086 28,846 - 190,541,920
beginning of the year
Fund revenue account at the end 2,877,392 341,219 1,807,730 3,830,379 387,153 2,175,814 240,611 13,439 42,170 390,569 261,008,062
of the year

219
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement SP Retirement Fund - Pension Balancer Fund Balancer Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Balanced Fund Secure Fund Fund II Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 PBalancer2 PBluChip 105 PDynmicPE PFlexiBal1 105
105 105 105
Income from investments
Interest income 58,239 94,213 2,549 30,484 16,030 227,368 218,865 42 38,022 33,988
Dividend income - 15,300 472 - 744 27,355 27,008 18,859 117,314 8,015
Profit/(loss) on sale of investment 312 75,084 2,935 17,994 17,062 343,222 375,538 166,425 2,220,450 94,641
Profit/(loss) on inter fund transfer/ - (1) 19 23 254 17,392 14,091 17,912 3,076 21,632
sale of investment
Unrealised gain/(loss) - 150,131 4,228 1,613 2,697 114,559 75,432 82,422 (788,515) 12,389
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 58,551 334,727 10,203 50,114 36,787 729,896 710,934 285,660 1,590,347 170,665
Fund management expenses 4,155 45,460 1,149 6,174 3,653 48,927 47,593 19,917 120,942 23,910
Fund administration expenses - - - - - 61,209 - - - -
Other charges F-5 - 22,528 103 4,143 5,317 20,240 6,648 (814) (9,722) 7,543
Service tax 621 13,132 188 2,096 1,225 19,960 8,215 2,976 17,927 4,692
Total expenditure (B) 4,776 81,120 1,440 12,413 10,195 150,336 62,456 22,079 129,147 36,145
Net income for the year (A-B) 53,775 253,607 8,763 37,701 26,592 579,560 648,478 263,581 1,461,200 134,520
Add: Fund revenue account at the 49,268 64,834 686 26,975 228,946 3,713,479 5,643,803 304,693 1,745,664 457,999
beginning of the year
Fund revenue account at the end 103,043 318,441 9,449 64,676 255,538 4,293,039 6,292,281 568,274 3,206,864 592,519
of the year

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Guarantee Fund Guarantee Guarantee Fund Fund II
Fund II Fund II Fund VIII IX (10 Yrs) Fund X (10 Fund XI (10
Yrs) Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
105
Income from investments
Interest income 31,633 1,022 987,950 381,668 12,870 3,914 7,933 1,116 13,851 328
Dividend income 7,982 338,825 - - - - - - 158,429 90,224
Profit/(loss) on sale of investment 93,733 2,795,559 445,605 222,283 396 147 919 78 3,165,997 1,798,079
Profit/(loss) on inter fund transfer/ 21,026 242,754 99,408 22,752 495 280 17 29 121,822 110,525
sale of investment
Unrealised gain/(loss) 9,604 1,527,668 1,209 (7,283) 544 149 839 137 (779,046) (468,181)
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 163,978 4,905,828 1,534,172 619,420 14,305 4,490 9,708 1,360 2,681,053 1,530,975
Fund management expenses 10,319 484,920 32,491 37,736 2,293 688 1,498 203 310,262 117,533
Fund administration expenses - - 163,626 - - - - - - -
Other charges F-5 1,507 159,872 93,900 7,413 (1) (2) 1 7 102,513 21,484
Service tax 1,805 95,914 42,959 7,016 342 103 223 31 61,187 21,177
Total expenditure (B) 13,631 740,706 332,976 52,165 2,634 789 1,722 241 473,962 160,194
Net income for the year (A-B) 150,347 4,165,122 1,201,196 567,255 11,671 3,701 7,986 1,119 2,207,091 1,370,781
Add: Fund revenue account at the 891,978 12,547,216 6,511,580 4,028,173 64,717 19,976 44,508 4,761 9,481,168 8,738,778
beginning of the year
Fund revenue account at the end 1,042,325 16,712,338 7,712,776 4,595,428 76,388 23,677 52,494 5,880 11,688,259 10,109,559
of the year

220
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Secure Plus Pension Flexi Pension Pension Pension Pension Pension Pension Multi Pension Multi
Secure Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Money Market Cap Balanced Cap Growth
Fund Fund II Fund Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 PGROWTH 105 PIncome 105 PMaximis1 PMaximis2 PMoneyMkt PMCapBal 105 PMCapGro
105 105 105 105 105
Income from investments
Interest income 66,902 8,162 471 37 450,277 440 3,071 198,818 54,492 4,486
Dividend income - 348 283,621 5,908 - 76,894 203,644 - 12,636 168,542
Profit/(loss) on sale of investment 33,511 4,347 2,339,878 27,865 243,013 472,661 1,588,912 9,119 130,647 1,465,877
Profit/(loss) on inter fund transfer/ 302 (9) 202,096 1,321 54,917 - 184,818 335 13,938 361,471
sale of investment
Unrealised gain/(loss) 2,002 4,012 1,149,961 49,940 (6,630) 532,849 756,303 (1,061) 98,480 880,781
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 102,717 16,860 3,976,027 85,071 741,577 1,082,844 2,736,748 207,211 310,193 2,881,157
Fund management expenses 12,518 1,707 259,284 6,051 81,068 56,368 213,764 19,133 23,158 168,525
Fund administration expenses - - - - - 70,627 - - - -
Other charges F-5 10,192 1,034 33,890 5,448 (4,404) 9,159 21,327 (1,090) (2,465) (9,353)
Service tax 4,368 452 44,689 2,118 12,194 21,013 35,267 2,878 3,291 25,155
Total expenditure (B) 27,078 3,193 337,863 13,617 88,858 157,167 270,358 20,921 23,984 184,327
Net income for the year (A-B) 75,639 13,667 3,638,164 71,454 652,719 925,677 2,466,390 186,290 286,209 2,696,830
Add: Fund revenue account at the 80,729 89,732 18,491,532 113,541 1,335,991 6,102,691 20,332,185 824,931 647,117 4,609,235
beginning of the year
Fund revenue account at the end 156,368 103,399 22,129,696 184,995 1,988,710 7,028,368 22,798,575 1,011,221 933,326 7,306,065
of the year

(` in ‘000)
Linked Pension Funds
Particulars Schedule Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
ULIF 043 25/02/08 PMultip1 ULIF 045 25/02/08 PMultip2 ULIF 092 11/01/10 POpport 105 ULIF 011 17/05/04 PPreserv Total
105 105 105
Income from investments
Interest income 167 58 129 493,698 3,443,293
Dividend income 54,066 23,913 41,610 - 1,681,709
Profit/(loss) on sale of investment 418,311 180,973 962,570 27,145 19,741,288
Profit/(loss) on inter fund transfer/ 1,835 360 42,480 575 1,557,945
sale of investment
Unrealised gain/(loss) 334,930 152,990 (329,647) (1,687) 3,563,819
Income on unclaimed amount of - - - - -
policyholders
Total income (A) 809,309 358,294 717,142 519,731 29,988,054
Fund management expenses 95,930 28,359 48,224 48,769 2,382,681
Fund administration expenses - - - - 295,462
Other charges F-5 32,664 4,438 (2,557) 40,771 581,734
Service tax 18,936 4,971 7,141 13,094 497,356
Total expenditure (B) 147,530 37,768 52,808 102,634 3,757,233
Net income for the year (A-B) 661,779 320,526 664,334 417,097 26,230,821
Add: Fund revenue account at the 1,940,604 1,445,228 1,597,704 2,916,896 115,097,318
beginning of the year
Fund revenue account at the end 2,602,383 1,765,754 2,262,038 3,333,993 141,328,139
of the year

221
 schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Health Funds
Particulars Schedule Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Health Preserver Health Protector Fund
Fund Fund Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Income from investments
Interest income 14,454 12,966 203 - 4,864 114,600 147,087
Dividend income 1,867 3,501 57,901 6,807 - - 70,076
Profit/(loss) on sale of investment 22,760 27,532 333,007 39,873 518 71,395 495,085
Profit/(loss) on inter fund transfer/ 183 1,964 55,555 1,276 - 9,480 68,458
sale of investment
Unrealised gain/(loss) 13,849 30,156 474,205 54,296 (14) 912 573,404
Income on unclaimed amount of - - - - - - -
policyholders
Total income (A) 53,113 76,119 920,871 102,252 5,368 196,387 1,354,110
Fund management expenses 3,493 4,741 72,141 8,234 498 11,705 100,812
Fund administration expenses - - - - - - -
Other charges F-5 42,092 66,183 562,855 60,967 7,178 187,860 927,135
Service tax 6,292 9,106 90,248 10,183 1,137 28,424 145,390
Total expenditure (B) 51,877 80,030 725,244 79,384 8,813 227,989 1,173,337
Net income for the year (A-B) 1,236 (3,911) 195,627 22,868 (3,445) (31,602) 180,773
Add: Fund revenue account at the (143,951) (205,446) (2,120,467) (264,949) (24,532) (702,932) (3,462,277)
beginning of the year
Fund revenue account at the end (142,715) (209,357) (1,924,840) (242,081) (27,977) (734,534) (3,281,504)
of the year

(` in ‘000)
Linked Group Funds
Particulars Schedule Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Debt Guarantee Guarantee Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Fund Debt Fund II Debt Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105 105
Income from investments
Interest income 1,159,509 626,122 5,607 128,566 143,088 1,639 67,947 32,553 1,911 4,100
Dividend income 52,470 22,382 269 5,537 5,090 - - - 268 961
Profit/(loss) on sale of investment 636,788 271,110 4,518 78,010 58,839 1,128 37,175 16,092 2,339 4,065
Profit/(loss) on inter fund transfer/ 34,823 13,067 2 382 2,647 4 377 - 136 (80)
sale of investment
Unrealised gain/(loss) 284,388 210,945 1,549 37,957 54,566 (130) 446 3,335 1,652 11,134
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 2,167,978 1,143,626 11,945 250,452 264,230 2,641 105,945 51,980 6,306 20,180
Fund management expenses 234,048 128,734 2,100 34,719 31,925 412 14,557 6,561 1,254 1,712
Fund administration expenses - - - - - - - - - -
Other charges F-5 (164,408) (115,067) (852) (18,851) (22,484) (203) (7,436) (3,955) (416) (1,030)
Service tax 34,924 19,218 313 5,179 4,765 61 2,171 980 187 256
Total expenditure (B) 104,564 32,885 1,561 21,047 14,206 270 9,292 3,586 1,025 938
Net income for the year (A-B) 2,063,414 1,110,741 10,384 229,405 250,024 2,371 96,653 48,394 5,281 19,242
Add: Fund revenue account at the 10,744,397 239,045 103,740 1,018,080 47,737 9,862 651,524 24,131 17,598 (1,693)
beginning of the year
Fund revenue account at the end 12,807,811 1,349,786 114,124 1,247,485 297,761 12,233 748,177 72,525 22,879 17,549
of the year

222
schedules
forming part of the financial statements Continued
3.14 FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

Form A-RA(UL)
(` in ‘000)
Linked Group Funds
Particulars Schedule Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Term Debt Guarantee Guarantee Guarantee Guarantee Guarantee
Balance Fund Income Fund Short Term Fund - S5 Fund Growth Fund II Growth Short Term Short Term Short Term
Fund Fund III Debt Fund Debt Fund II Debt Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 02/04/08 26/02/10 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
GLEBal 105 GLEIncome GLEST 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105 105
Income from investments
Interest income 60,969 8,792 26 1 269,105 9,299 2,770 8,429 328,936 68,323
Dividend income 2,754 - - - - 1,126 330 - - -
Profit/(loss) on sale of investment 38,770 6,522 2 16 17,760 7,606 1,617 975 17,963 5,244
Profit/(loss) on inter fund transfer/ 4,113 - (1) 303 1,678 644 6 - 353 -
sale of investment
Unrealised gain/(loss) 18,277 (36) - (286) (4,143) 8,084 2,774 (45) (1,334) 148
Income on unclaimed amount of - - - - - - - - - -
policyholders
Total income (A) 124,883 15,278 27 34 284,400 26,759 7,497 9,359 345,918 73,715
Fund management expenses 12,895 1,623 4 13 45,640 4,383 885 1,454 62,828 13,220
Fund administration expenses - - - - - - - - - -
Other charges F-5 (9,955) (988) - - (26,996) (1,861) (386) (996) (43,766) (9,111)
Service tax 1,924 242 1 2 6,801 654 132 217 9,373 1,973
Total expenditure (B) 4,864 877 5 15 25,445 3,176 631 675 28,435 6,082
Net income for the year (A-B) 120,019 14,401 22 19 258,955 23,583 6,866 8,684 317,483 67,633
Add: Fund revenue account at the 450,703 56,693 185,576 54,552 3,746,745 40,030 188 101,224 1,838,037 78,780
beginning of the year
Fund revenue account at the end 570,722 71,094 185,598 54,571 4,005,700 63,613 7,054 109,908 2,155,520 146,413
of the year

(` in ‘000)
Linked Group Funds
Particulars Schedule Group Debt Fund Group Debt Fund II Group Equity Group Growth Group Short Term Group Short Term
Fund II Fund Debt Fund II Debt Fund III Grand Total
Total
ULGF 002 03/04/03 ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
Income from investments
Interest income 928,590 156,846 1 192,655 919 33,073 4,239,776 24,344,376
Dividend income - - 252 55,572 - - 147,011 6,555,963
Profit/(loss) on sale of investment 617,599 85,278 1,351 316,077 102 2,548 2,229,494 54,878,219
Profit/(loss) on inter fund transfer/ 35,959 896 12 4,160 - - 99,481 3,321,306
sale of investment
Unrealised gain/(loss) (73,454) 2,996 2,289 404,005 2 165 965,284 40,579,413
Income on unclaimed amount of - - - - - - - 403,684
policyholders
Total income (A) 1,508,694 246,016 3,905 972,469 1,023 35,786 7,681,046 130,082,961
Fund management expenses 158,188 27,754 258 79,591 183 5,852 870,793 11,045,033
Fund administration expenses - - - - - - - 1,051,248
Other charges F-5 (90,916) (20,587) (169) (52,537) (30) (2,875) (595,875) 9,670,063
Service tax 23,581 4,142 38 11,875 27 873 129,909 4,162,662
Total expenditure (B) 90,853 11,309 127 38,929 180 3,850 404,827 25,929,006
Net income for the year (A-B) 1,417,841 234,707 3,778 933,540 843 31,936 7,276,219 104,153,955
Add: Fund revenue account at the 6,567,470 221,391 476 5,067,275 100,169 10,097 31,373,827 333,550,788
beginning of the year
Fund revenue account at the end 7,985,311 456,098 4,254 6,000,815 101,012 42,033 38,650,046 437,704,743
of the year

223
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2017
(` in ‘000)
Linked Life Funds
Particulars Anmol Nivesh Balancer Fund Balancer Balancer Balancer Bluechip Fund Cash Plus Fund Discontinued Dynamic P/E Flexi Balanced
Fund Fund II Fund III Fund IV Fund - Life Fund Fund
ULIF 072 ULIF 002 ULIF 014 ULIF 023 ULIF 039 ULIF 087 ULIF 008 ULIF 100 ULIF 097 ULIF 031
28/04/09 22/10/01 17/05/04 13/03/06 27/08/07 24/11/09 11/08/03 01/07/10 11/01/10 20/03/07
LAnmolNiv 105 LBalancer1 105 LBalancer2 105 LBalancer3 105 LBalancer4 105 LBluChip 105 LCashPlus 105 LDiscont 105 LDynmicPE 105 LFlexiBal1 105
Policy administration charge 102 - 7,685 373 3,161 48,031 4,804 - 95,049 -
Surrender charge - - 130 - - - 23,687 - - -
Switching charge - 35 14 1 2 77 - - 39 13
Mortality charge 59 26,989 12,393 1,026 5,182 70,105 16,746 (4,811) 144,101 2,757
Rider premium charge - 6,129 6,681 - 62 1,893 - - 8,547 508
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - 3,844 - 523 11 -
Policy foreclosure charges - (221) 7 - - - 65 - (4) (13)
Miscellaneous charges (33) (3,357) (553) - - (363) - 240 (2,680) (312)
Total 128 29,575 26,357 1,400 8,407 123,587 45,302 (4,048) 245,063 2,953

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Balanced Maximiser Maximiser Maximiser Maximiser Maximiser Money Market Multi Cap Multi Cap
Fund II Fund III Fund Fund II Fund III Fund IV Fund V Fund Balanced Fund Growth Fund
ULIF 032 ULIF 033 ULIF 001 ULIF 012 ULIF 022 ULIF 037 ULIF 114 ULIF 090 ULIF 088 ULIF 085
20/03/07 20/03/07 22/10/01 17/05/04 13/03/06 27/08/07 15/03/11 24/11/09 24/11/09 24/11/09
LFlexiBal2 105 LFlexiBal3 105 LMaximis1 105 LMaximis2 105 LMaximis3 105 LMaximis4 105 LMaximis5 105 LMoneyMkt LMCapBal 105 LMCapGro 105
105
Policy administration charge 2,781 83 (13) 25,578 2,809 1,846 1,234,302 178,528 61,263 228,814
Surrender charge - - (4) 507 (1) - - - - -
Switching charge 3 1 295 74 17 10 269 490 49 344
Mortality charge 4,198 218 88,277 50,906 5,014 2,911 1,925,607 261,728 94,703 321,068
Rider premium charge 2,508 - 23,866 17,578 - 185 19,697 4,332 2,539 16,254
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - 109,795 6,204 3,113 8,212
Policy foreclosure charges 1 - (763) 6 - - - (27) (228) (275)
Miscellaneous charges (7) - (5,787) (2,323) - (8) 580 (170) (304) (5,086)
Total 9,484 302 105,871 92,326 7,839 4,944 3,290,250 451,085 161,135 569,331

(` in ‘000)
Linked Life Funds
Particulars Multiplier Fund Multiplier Multiplier Multiplier Return Return Return Return Return RICH Fund
Fund II Fund III Fund IV Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund
VIII (10 Yrs) IX (10 Yrs) X (10 Yrs) XI (5 Yrs) XI (10 Yrs)
ULIF 042 ULIF 044 ULIF 046 ULIF 047 ULIF 104 ULIF 107 ULIF 112 ULIF 120 ULIF 121 ULIF 048
22/11/07 25/02/08 25/02/08 25/02/08 12/10/10 22/12/10 13/01/11 17/03/11 19/04/11 17/03/08
LMultip1 105 LMultip2 105 LMultip3 105 LMultip4 105 LRGF(S1) 105 LRGF(S2) 105 LRGF(S3) 105 LRGF(T11) 105 LRGF(S4) 105 LRICH1 105
Policy administration charge - 7,875 259 3,131 (1) 5 29 46 46 -
Surrender charge - - - - - - - - - -
Switching charge 43 17 2 4 - - - - - 26
Mortality charge 11,641 10,620 321 5,634 434 294 1,889 69 88 10,698
Rider premium charge 2,344 6,080 - 217 2 1 7 1 5 1,885
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - (4) (1) - -
Policy foreclosure charges (258) (16) - - - - - - - (273)
Miscellaneous charges (1,514) (443) - - - - - (203) - (5,641)
Total 12,256 24,133 582 8,986 435 300 1,921 (88) 139 6,695

(` in ‘000)
Linked Life Funds
Particulars Flexi Balanced Flexi Growth Flexi Growth Flexi Growth Flexi Growth Highest NAV Income Fund Invest Shield Invest Shield Life Growth
Fund IV Fund Fund II Fund III Fund IV Fund B Cash Fund Fund - Life Fund
ULIF 040 ULIF 026 ULIF 027 ULIF 028 ULIF 038 ULIF 116 ULIF 089 ULIF 020 ULIF 018 ULIF 134
27/08/07 20/03/07 20/03/07 20/03/07 27/08/07 15/03/11 24/11/09 03/01/05 03/01/05 19/09/13 LGF
LFlexiBal4 105 LFlexiGro1 105 LFlexiGro2 105 LFlexiGro3 105 LFlexiGro4 105 LHighNavB 105 LIncome 105 LInvCash 105 LInvShld 105 105
Policy administration charge 989 - 50,746 2,020 43,053 267,348 411,601 26,456 2,687 141,256
Surrender charge - - - - - - - 36,098 7,635 -
Switching charge 2 127 37 9 36 3 287 - - -
Mortality charge 1,613 34,590 63,209 2,623 50,291 617,203 610,480 45,923 2,451 159,631
Rider premium charge 37 7,725 32,951 - 1,946 - 10,474 65 493 -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - 1,071 11,691 - - 18,936
Policy foreclosure charges - (220) (37) - (609) - (37) 174 (31) -
Miscellaneous charges - (3,237) (108) - 79 (1,044) (2,141) 135 216 311
Total 2,641 38,985 146,798 4,652 94,796 884,581 1,042,355 108,851 13,451 320,134

224
schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2017
(` in ‘000)
Linked Life Funds
Particulars Life Secure Maximise India New Invest Opportunities Pinnacle Fund Pinnacle Preserver Fund Preserver Preserver Protector Fund
Fund Fund Shield Balanced Fund Fund II Fund III Fund IV
Fund
ULIF 135 ULIF 136 ULIF 025 ULIF 086 ULIF 081 ULIF 105 ULIF 010 ULIF 021 ULIF 036 ULIF 003
19/09/13 LSF 11/20/14 MIF 21/08/06 24/11/09 26/10/09 26/10/10 17/05/04 13/03/06 27/08/07 22/10/01
105 105 LInvShldNw LOpport 105 LPinnacle 105 LPinnacle2 105 LPreserv1 105 LPreserv3 105 LPreserv4 105 LProtect1 105
105
Policy administration charge 125,114 17,875 11,922 28,047 (117) 12,796 3,504 221 2,525 -
Surrender charge - - 8,692 - - - 38 - - -
Switching charge - 1 - 32 - - 387 18 40 203
Mortality charge 167,415 25,279 11,256 41,357 20,744 50,845 16,058 554 4,458 22,720
Rider premium charge - 18,193 - 2,675 - - 4,474 - 97 4,258
Partial withdrawal charge - - - - - - - - - -
Discontinued charges 17,095 3,239 - 888 - (4) - - - -
Policy foreclosure charges - - (136) - (584) - 110 - - (5)
Miscellaneous charges 251 - - (732) - - (704) - - (1,640)
Total 309,875 64,587 31,734 72,267 20,043 63,637 23,867 793 7,120 25,536

(` in ‘000)
Linked Life Funds
Particulars Protector Protector Protector RICH Fund II RICH Fund III RICH Fund IV Secure Plus Secure Save Secure Save Unclaimed
Fund II Fund III Fund IV Fund Builder Fund Guarantee Fund
Fund
ULIF 016 ULIF 024 ULIF 041 ULIF 049 ULIF 050 ULIF 051 ULIF 007 ULIF 077 ULIF 076 ULIF 137 Total
17/05/04 13/03/06 27/08/07 17/03/08 17/03/08 17/03/08 11/08/03 29/05/09 29/05/09 27/11/15
LProtect2 105 LProtect3 105 LProtect4 105 LRICH2 105 LRICH3 105 LRICH4 105 LSecPlus 105 LSSavBuil 105 LSSavGtee UNCLAIM 105
105
Policy administration charge 7,099 391 21,790 45,366 821 17,810 587 170 641 - 3,149,304
Surrender charge 43 - - - 5 - 2,704 - - - 79,534
Switching charge 51 12 22 6 2 11 - - - - 3,111
Mortality charge 18,649 942 30,153 43,300 966 24,850 1,231 - - - 5,139,656
Rider premium charge 6,154 - 926 28,644 - 820 - - - - 241,253
Partial withdrawal charge - - - - - - - - - - -
Discontinued charges - - - - - - - - - - 184,613
Policy foreclosure charges - - (22) (108) - - - - - - (3,504)
Miscellaneous charges (170) - (18) (113) - (19) - - - - (36,898)
Total 31,826 1,345 52,851 117,095 1,794 43,472 4,522 170 641 - 8,757,069

(` in ‘000)
Linked Pension Funds
Particulars Discontinued Easy Easy Easy Invest Shield Pension Pension Pension Pension Pension Flexi
Fund - Pension Retirement Retirement SP Retirement Fund - Pension Balancer Fund Balancer Fund II Bluechip Fund Dynamic P/E Balanced Fund
Balanced Fund Balanced Fund Secure Fund Fund
ULIF 101 ULIF 132 ULIF 136 ULIF 133 ULIF 019 ULIF 005 ULIF 015 ULIF 093 ULIF 098 ULIF 034
01/07/10 02/11/12 ERBF 25/03/13 02/11/12 ERSF 03/01/05 03/05/02 17/05/04 11/01/10 11/01/10 20/03/07
PDiscont 105 105 ERSPBF 105 105 PInvShld 105 PBalancer1 105 PBalancer2 105 PBluChip 105 PDynmicPE 105 PFlexiBal1 105
Policy administration charge - 20,607 103 3,737 717 14,400 5,791 (68) (929) 5,154
Surrender charge - - - - 3,566 6,584 493 - - 2,476
Switching charge - 2 - 2 - 13 19 26 32 14
Mortality charge - - - - 226 507 542 131 1,008 11
Rider premium charge - - - - 48 322 218 - - 6
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - 1,919 - 404 - - - - - -
Policy foreclosure charges - - - - - (1,585) (187) (88) (1,730) (118)
Miscellaneous charges - - - - 760 (1) (228) (815) (8,103) -
Total - 22,528 103 4,143 5,317 20,240 6,648 (814) (9,722) 7,543

(` in ‘000)
Linked Pension Funds
Particulars Pension Flexi Pension Flexi Pension Pension Pension Return Pension Return Pension Return Pension Return Pension RICH Pension RICH
Balanced Growth Fund Protector Fund Protector Guarantee Fund Guarantee Fund Guarantee Fund Guarantee Fund Fund Fund II
Fund II Fund II VIII IX (10 Yrs) X (10 Yrs) XI (10 Yrs)
ULIF 035 ULIF 029 ULIF 006 ULIF 017 ULIF 102 ULIF 108 ULIF 113 ULIF 122 ULIF 052 ULIF 053
20/03/07 20/03/07 03/05/02 17/05/04 12/10/10 22/12/10 13/01/11 19/04/11 17/03/08 17/03/08
PFlexiBal2 105 PFlexiGro1 105 PProtect1 105 PProtect2 105 PRGF(S1) 105 PRGF(S2) 105 PRGF(S3) 105 PRGF(S4) 105 PRICH1 105 PRICH2 105
Policy administration charge 1,331 116,252 65,743 7,761 (1) (2) (1) 5 73,925 19,313
Surrender charge - 47,235 27,333 149 - - 2 2 29,964 -
Switching charge 7 154 113 88 - - - - 54 18
Mortality charge 208 77 546 1,552 - - - - - 2,775
Rider premium charge 49 50 339 148 - - - - - 659
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - (3,896) (173) (1,009) - - - - (1,429) (876)
Miscellaneous charges (88) - (1) (1,276) - - - - (1) (405)
Total 1,507 159,872 93,900 7,413 (1) (2) 1 7 102,513 21,484

225
 schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2017
(` in ‘000)
Linked Pension Funds
Particulars Pension Secure Secure Plus Pension Flexi Pension Pension Pension Pension Pension Money Pension Multi Pension Multi
Fund Pension Fund Growth Fund II Growth Fund Income Fund Maximiser Maximiser Market Fund Cap Balanced Cap Growth
Fund Fund II Fund Fund
ULIF 128 ULIF 009 ULIF 030 ULIF 127 ULIF 095 ULIF 004 ULIF 013 ULIF 096 ULIF 094 ULIF 091
01/12/11 17/11/03 20/03/07 01/12/11 11/01/10 03/05/02 17/05/04 11/01/10 11/01/10 11/01/10
PSECURE 105 PSecPlus 105 PFlexiGro2 105 PGROWTH 105 PIncome 105 PMaximis1 105 PMaximis2 105 PMoneyMkt PMCapBal 105 PMCapGro 105
105
Policy administration charge 6,296 170 31,581 3,064 (71) 5,398 16,844 (229) 39 100
Surrender charge - 653 31 - - 2,100 2,439 - - -
Switching charge - - 70 - 64 44 95 131 11 116
Mortality charge 4,718 211 4,600 2,261 1,057 946 1,317 286 132 1,978
Rider premium charge - - 950 - - 671 761 - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges 232 - - 123 - - - - - -
Policy foreclosure charges (1,054) - (1,418) - (792) - (129) (432) (1,657) (3,597)
Miscellaneous charges - - (1,924) - (4,662) - - (846) (990) (7,950)
Total 10,192 1,034 33,890 5,448 (4,404) 9,159 21,327 (1,090) (2,465) (9,353)

(` in ‘000)
Linked Pension Funds
Particulars Pension Multiplier Fund Pension Multiplier Fund II Pension Opportunities Fund Pension Preserver Fund
ULIF 043 25/02/08 ULIF 045 25/02/08 ULIF 092 11/01/10 ULIF 011 17/05/04 Total
PMultip1 105 PMultip2 105 POpport 105 PPreserv 105
Policy administration charge 24,176 3,714 (263) 25,329 449,986
Surrender charge 8,584 - - 14,758 146,369
Switching charge 41 23 17 309 1,463
Mortality charge 13 735 362 416 26,615
Rider premium charge 8 132 - 90 4,451
Partial withdrawal charge - - - - -
Discontinued charges - - - - 2,678
Policy foreclosure charges (158) (10) (751) - (21,089)
Miscellaneous charges - (156) (1,922) (131) (28,739)
Total 32,664 4,438 (2,557) 40,771 581,734

(` in ‘000)
Linked Health Funds
Particulars Health Balancer Fund Health Flexi Balanced Health Flexi Growth Health Multiplier Fund Health Preserver Fund Health Protector Fund
Fund Fund
Total
ULIF 059 15/01/09 ULIF 060 15/01/09 ULIF 057 15/01/09 ULIF 058 15/01/09 ULIF 056 15/01/09 ULIF 061 15/01/09
HBalancer 105 HFlexiBal 105 HFlexiGro 105 HMultip 105 HPreserv 105 HProtect 105
Policy administration charge 3,826 5,938 52,571 5,752 675 16,821 85,583
Surrender charge - - - - - - -
Switching charge 1 1 10 8 10 10 40
Mortality charge 33,735 48,663 468,509 53,011 6,270 157,504 767,692
Rider premium charge - - - - - - -
Partial withdrawal charge - - - - - - -
Discontinued charges - - - - - - -
Policy foreclosure charges 4,279 11,529 39,644 2,019 223 12,661 70,355
Miscellaneous charges 251 52 2,121 177 - 864 3,465
Total 42,092 66,183 562,855 60,967 7,178 187,860 927,135

(` in ‘000)
Linked Group Funds
Particulars Group Group Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Capital Group Growth
Balanced Fund Balanced Guarantee Guarantee Guarantee Guarantee Debt Guarantee Debt Guarantee Debt Guarantee Fund II
Fund II Balanced Fund Balanced Balanced Fund Fund II Fund III Growth Fund
Fund II Fund III
ULGF 001 ULGF 041 ULGF 006 ULGF 010 ULGF 049 ULGF 007 ULGF 011 ULGF 048 ULGF 008 ULGF 042
03/04/03 30/04/13 03/10/05 21/03/07 27/08/13 28/10/05 21/03/07 27/08/13 11/12/06 30/04/13
GBalancer 105 GBalancer2 105 GCGBal1 105 GCGBal2 105 GCGBal3 105 GCGDebt1 105 GCGDebt2 105 GCGDebt3 105 GCGGrowth1 GGrowth2 105
105
Policy administration charge - - - - - - - - - -
Surrender charge - - - - - - - - - -
Switching charge - - - - - - - - - -
Mortality charge - - - - - - - - - -
Rider premium charge - - - - - - - - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - - - - - - - - - -
Miscellaneous charges (164,408) (115,067) (852) (18,851) (22,484) (203) (7,436) (3,955) (416) (1,030)
Total (164,408) (115,067) (852) (18,851) (22,484) (203) (7,436) (3,955) (416) (1,030)

226
schedules
forming part of the financial statements Continued
SCHEDULE: F - 5
OTHER EXPENSES FOR THE YEAR ENDED MARCH 31, 2017

(` in ‘000)
Linked Group Funds
Particulars Group Leave Group Leave Group Leave Group Return Group Short Group Capital Group Capital Group Capital Group Capital Group Capital
Encashment Encashment Encashment Guarantee Term Debt Fund Guarantee Guarantee Guarantee Short Guarantee Guarantee
Balance Fund Income Fund Short Term Fund Fund - S5 Growth Fund II Growth Fund III Term Debt Fund Short Term Debt Short Term Debt
Fund II Fund III
ULGF 013 ULGF 014 ULGF 024 ULGF 026 ULGF 003 ULGF 012 ULGF 050 ULGF 005 ULGF 009 ULGF 047
02/04/08 02/04/08 26/02/10 GLEST 14/03/11 03/04/03 05/07/07 27/08/13 24/02/04 16/03/07 27/08/13
GLEBal 105 GLEIncome 105 105 GRGFS5 105 GSTDebt 105 GCGGrowth2 GCGGrowth3 GCGSTDebt1 GCGSTDebt2 GCGSTDebt3
105 105 105 105 105
Policy administration charge - - - - - - - - - -
Surrender charge - - - - - - - - - -
Switching charge - - - - - - - - - -
Mortality charge - - - - - - - - - -
Rider premium charge - - - - - - - - - -
Partial withdrawal charge - - - - - - - - - -
Discontinued charges - - - - - - - - - -
Policy foreclosure charges - - - - - - - - - -
Miscellaneous charges (9,955) (988) - - (26,996) (1,861) (386) (996) (43,766) (9,111)
Total (9,955) (988) - - (26,996) (1,861) (386) (996) (43,766) (9,111)

Particulars
ULGF 002 03/04/03
Policy administration charge
Surrender charge
Switching charge
Mortality charge
Rider premium charge
Partial withdrawal charge
Discontinued charges
Policy foreclosure charges
Miscellaneous charges
Total
(` in ‘000)
Linked Group Funds
Group Debt Fund Group Debt Fund II Group Equity Fund II Group Growth Fund Group Short Term Group Short Term
Debt Fund II Debt Fund III Grand Total
Total
ULGF 040 30/04/13 ULGF 043 30/04/13 ULGF 004 30/10/03 ULGF 046 27/08/13 ULGF 039 30/04/13
GDebt 105 GDebt2 105 GEquity2 105 GGrowth 105 GSTDebt2 105 GSTDebt3 105
- - - - - - - 3,684,873
- - - - - - - 225,903
- - - - - - - 4,614
- - - - - - - 5,933,963
- - - - - - - 245,704
- - - - - - - -
- - - - - - - 187,291
- - - - - - - 45,762
(90,916) (20,587) (169) (52,537) (30) (2,875) (595,875) (658,047)
(90,916) (20,587) (169) (52,537) (30) (2,875) (595,875) 9,670,063

227
 schedules
forming part of the financial statements Continued
3.15. Annexure to the Revenue Account for the year ended March 31, 2018
Policyholders’ Account (Technical Account)
(` in ‘000)

Particulars Sch Linked Life Linked Pension Linked Health Linked Group Life Linked Group Pension Total Unit
Linked
Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total
(1) (2) (3)=(1)+(2) (4) (5) (6)=(4)+(5) (7) (8) (9)=(7)+(8) (10) (11) (12)=(10) (13) (14) (15)= (16)= (3)+
+ (11) (13)+(14) (6)+ (9)+
(12)+(15)
Premiums earned – net
(a) Premium 7,734,220 182,278,131 190,012,351 48,054 5,465,027 5,513,081 20,507 1,010,188 1,030,695 10,125 4,656,884 4,667,009 - 2,651,735 2,651,735 203,874,871
(b) Reinsurance ceded (486,475) - (486,475) (74) - (74) (314,234) - (314,234) (36) - (36) - - - (800,819)
(c) Reinsurance accepted - - - - - - - - - - - - - - - -
Sub-total 7,247,745 182,278,131 189,525,876 47,980 5,465,027 5,513,007 (293,727) 1,010,188 716,461 10,089 4,656,884 4,666,973 - 2,651,735 2,651,735 203,074,052
Income from Investments
(a) Interest, Dividend & Rent - Gross 675,573 20,235,410 20,910,983 59,018 4,064,941 4,123,959 22,869 224,272 247,141 27,247 2,229,905 2,257,152 2,602 1,661,644 1,664,246 29,203,481
(b) Profit on sale/redemption of 146,038 47,034,504 47,180,542 20,176 22,784,600 22,804,776 5,677 972,734 978,411 10,760 1,972,560 1,983,320 9,317 585,430 594,747 73,541,796
investments
(c) Loss on sale/redemption of (12,439) (7,650,855) (7,663,294) (1,382) (1,644,796) (1,646,178) - (87,493) (87,493) - (566,560) (566,560) - (332,079) (332,079) (10,295,604)
investments
(d) Unrealised gain/(loss) - 756,321 756,321 - (8,529,603) (8,529,603) - (103,407) (103,407) - (1,116,515) (1,116,515) - 15,635 15,635 (8,977,569)
(e) Accretion of discount/(amortisation 6,222 3,933,123 3,939,345 5,350 416,566 421,916 3,152 9,149 12,301 (852) 118,126 117,274 (82) 315,186 315,104 4,805,940
of premium)
Sub-total 815,394 64,308,503 65,123,897 83,162 17,091,708 17,174,870 31,698 1,015,255 1,046,953 37,155 2,637,516 2,674,671 11,837 2,245,816 2,257,653 88,278,044
Other income
(a) Linked income UL1 19,990,132 (19,990,132) - 2,938,127 (2,938,127) - 982,115 (982,115) - 112,739 (112,739) - 150,624 (150,624) - -
(b) Contribution from the Shareholders' a/c - - - - - - - - - - - - - - - -
(c) Income on unclaimed amount of - 500,740 500,740 - - - - - - - - - - - - 500,740
policyholders
(d) Fees & charges 416 - 416 - - - - - - - - - - - - 416
(e) Misc. income 11,811 - 11,811 344 - 344 61 - 61 281 - 281 114 - 114 12,611
Sub-total 20,002,359 (19,489,392) 512,967 2,938,471 (2,938,127) 344 982,176 (982,115) 61 113,020 (112,739) 281 150,738 (150,624) 114 513,767
TOTAL (A) 28,065,498 227,097,242 255,162,740 3,069,613 19,618,608 22,688,221 720,147 1,043,328 1,763,475 160,264 7,181,661 7,341,925 162,575 4,746,927 4,909,502 291,865,863
Commission 9,510,443 - 9,510,443 36,459 - 36,459 5,902 - 5,902 - - - - - - 9,552,804
Operating expenses related to insurance 11,776,550 133,556 11,910,106 395,612 (18,287) 377,325 62,457 2,401 64,858 73,878 (1,068) 72,810 46,605 929 47,534 12,472,633
business
Provision for doubtful debts (7,825) - (7,825) (752) - (752) (217) - (217) - - - - - - (8,794)
Bad debts written off 31,308 - 31,308 202 - 202 8 - 8 9 - 9 - - - 31,527
Provisions (other than taxation)
(a) For diminution in the value of - - - - - - - - - - - - - - - -
investments (Net)
(b) Others - - - - - - - - - - - - - - - -
Service tax/Goods & Service Tax charge - 4,798,211 4,798,211 - 518,259 518,259 - 168,799 168,799 - 83,877 83,877 - 75,974 75,974 5,645,120
on linked charges
TOTAL (B) 21,310,476 4,931,767 26,242,243 431,521 499,972 931,493 68,150 171,200 239,350 73,887 82,809 156,696 46,605 76,903 123,508 27,693,290
Benefits paid (Net) UL2 1,852,626 103,316,531 105,169,157 7,582 46,512,660 46,520,242 254,114 142,553 396,667 1,596 4,996,813 4,998,409 - 2,720,325 2,720,325 159,804,800
Interim bonus paid - - - - - - - - - - - - - - - -
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/ 55,100 - 55,100 (72,236) - (72,236) 50,801 - 50,801 (4,873) - (4,873) 512 - 512 29,304
mathematical reserves)(Gross)
(b) Amount ceded in reinsurance - - - - - - - - - - - - - - - -
(c) Amount accepted in reinsurance - - - - - - - - - - - - - - - -
(d) Fund reserve - 106,625,977 106,625,977 - (27,648,442) (27,648,442) - 729,575 729,575 - 2,102,039 2,102,039 - 1,949,699 1,949,699 83,758,848
(e) Funds for discontinued policies - 12,223,005 12,223,005 - 254,515 254,515 - - - - - - - - - 12,477,520
TOTAL (C) 1,907,726 222,165,513 224,073,239 (64,654) 19,118,733 19,054,079 304,915 872,128 1,177,043 (3,277) 7,098,852 7,095,575 512 4,670,024 4,670,536 256,070,472
SURPLUS/(DEFICIT) (D) =(A)-(B)-(C) 4,847,296 (38) 4,847,258 2,702,746 (97) 2,702,649 347,082 - 347,082 89,654 - 89,654 115,458 - 115,458 8,102,101
Provision for taxation -
(a) Current tax credit/(charge) - - - - - - - - - - - - - - - -
(b) Deferred tax credit/(charge) (5) - (5) - - - - - - - - - - - - (5)
SURPLUS/(DEFICIT) AFTER TAX 4,847,291 (38) 4,847,253 2,702,746 (97) 2,702,649 347,082 - 347,082 89,654 - 89,654 115,458 - 115,458 8,102,096
APPROPRIATIONS
Transfer to Shareholders' a/c 4,847,291 - 4,847,291 2,702,746 - 2,702,746 347,082 - 347,082 89,654 - 89,654 115,458 - 115,458 8,102,231
Transfer to Other Reserves - - - - - - - - - - - - - - - -
Balance being funds for future - (38) (38) - (97) (97) - - - - - - - - - (135)
appropriations
Total (D) 4,847,291 (38) 4,847,253 2,702,746 (97) 2,702,649 347,082 - 347,082 89,654 - 89,654 115,458 - 115,458 8,102,096

228
schedules
forming part of the financial statements Continued
3.15. Annexure to the Revenue Account for the year ended March 31, 2017
Policyholders’ Account (Technical Account)
(` in ‘000)

Particulars Sch Linked Life Linked Pension Linked Health Linked Group Total Unit
Linked
Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total
(1) (2) (3)=(1)+(2) (4) (5) (6)=(4)+(5) (7) (8) (9)=(7)+(8) (10) (11) (12)=(10) + (11) (16)= (3)+ (6)+
(9)+ (12)+(15)
Premiums earned – net
(a) Premium 5,667,490 145,371,225 151,038,715 55,873 6,550,953 6,606,826 24,253 1,168,028 1,192,281 24,933 7,514,487 7,539,420 166,377,242
(b) Reinsurance ceded (459,637) - (459,637) (83) - (83) (317,561) - (317,561) (32) - (32) (777,313)
(c) Reinsurance accepted - - - - - - - - - - - - -
Sub-total 5,207,853 145,371,225 150,579,078 55,790 6,550,953 6,606,743 (293,308) 1,168,028 874,720 24,901 7,514,487 7,539,388 165,599,929
Income from Investments
(a) Interest, Dividend & Rent - Gross 602,981 16,742,806 17,345,787 77,441 4,553,456 4,630,897 19,528 205,057 224,585 44,002 3,734,243 3,778,245 25,979,514
(b) Profit on sale/redemption of 231,934 41,207,335 41,439,269 24,953 23,569,022 23,593,975 2,817 613,707 616,524 5,102 3,125,157 3,130,259 68,780,027
investments
(c) Loss on sale/redemption of (3,997) (7,199,561) (7,203,558) (1,689) (2,269,789) (2,271,478) - (50,164) (50,164) - (796,182) (796,182) (10,321,382)
investments
(d) Unrealised gain/(loss) - 35,476,906 35,476,906 - 3,563,819 3,563,819 - 573,404 573,404 - 965,284 965,284 40,579,413
(e) Accretion of discount/(amortisation 28,571 4,428,581 4,457,152 5,347 571,546 576,893 3,006 12,106 15,112 279 652,544 652,823 5,701,980
of premium)
Sub-total 859,489 90,656,067 91,515,556 106,052 29,988,054 30,094,106 25,351 1,354,110 1,379,461 49,383 7,681,046 7,730,429 130,719,552
Other income
(a) Linked income UL1 17,203,602 (17,203,602) - 3,259,877 (3,259,877) - 1,027,947 (1,027,947) - 274,918 (274,918) - -
(b) Contribution from the Shareholders' a/c - - - - - - - - - - - - -
(c) Income on unclaimed amount of - 403,684 403,684 - - - - - - - - - 403,684
policyholders
(d) Fees & charges 353 - 353 - - - - - - - - - 353
(e) Misc. income 10,728 - 10,728 465 - 465 39 - 39 166 - 166 11,398
Sub-total 17,214,683 (16,799,918) 414,765 3,260,342 (3,259,877) 465 1,027,986 (1,027,947) 39 275,084 (274,918) 166 415,435
TOTAL (A) 23,282,025 219,227,374 242,509,399 3,422,184 33,279,130 36,701,314 760,029 1,494,191 2,254,220 349,368 14,920,615 15,269,983 296,734,916
Commission 4,215,795 - 4,215,795 44,851 - 44,851 7,114 - 7,114 - - - 4,267,760
Operating expenses related to insurance 14,760,676 89,592 14,850,268 559,377 (18,111) 541,266 72,319 2,106 74,425 170,738 (1,157) 169,581 15,635,540
business
Provision for doubtful debts (29,406) - (29,406) (323) - (323) (125) - (125) (100) - (100) (29,954)
Bad debts written off 62,992 - 62,992 3,518 - 3,518 703 - 703 1 - 1 67,214
Provisions (other than taxation)
(a) For diminution in the value of - - - - - - - - - - - - -
investments (Net)
(b) Others - - - - - - - - - - - - -
Service tax/Goods & Service Tax charge - 3,390,007 3,390,007 - 497,356 497,356 - 145,390 145,390 - 129,909 129,909 4,162,662
on linked charges
TOTAL (B) 19,010,057 3,479,599 22,489,656 607,423 479,245 1,086,668 80,011 147,496 227,507 170,639 128,752 299,391 24,103,222
Benefits paid (Net) UL2 1,195,211 85,489,413 86,684,624 11,968 42,715,434 42,727,402 251,198 126,091 377,289 2,945 10,529,777 10,532,722 140,322,037
Interim bonus paid - - - - - - - - - - - - -
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/ 1,053,994 - 1,053,994 (109,534) - (109,534) 52,992 - 52,992 (17,256) - (17,256) 980,196
mathematical reserves)(Gross)
(b) Amount ceded in reinsurance - - - - - - - - - - - - -
(c) Amount accepted in reinsurance - - - - - - - - - - - - -
(d) Fund reserve - 124,354,140 124,354,140 - (10,374,995) (10,374,995) - 1,220,604 1,220,604 - 4,262,086 4,262,086 119,461,835
(e) Funds for discontinued policies - 5,905,839 5,905,839 - 460,426 460,426 - - - - - - 6,366,265
TOTAL (C) 2,249,205 215,749,392 217,998,597 (97,566) 32,800,865 32,703,299 304,190 1,346,695 1,650,885 (14,311) 14,791,863 14,777,552 267,130,333
SURPLUS/(DEFICIT) (D) =(A)-(B)-(C) 2,022,763 (1,617) 2,021,146 2,912,327 (980) 2,911,347 375,828 - 375,828 193,040 - 193,040 5,501,361
Provision for taxation -
(a) Current tax credit/(charge) - - - - - - - - - - - - -
(b) Deferred tax credit/(charge) (233) - (233) - - - - - - - - - (233)
SURPLUS/(DEFICIT) AFTER TAX 2,022,530 (1,617) 2,020,913 2,912,327 (980) 2,911,347 375,828 - 375,828 193,040 - 193,040 5,501,128
APPROPRIATIONS
Transfer to Shareholders' a/c 2,022,530 - 2,022,530 2,920,712 - 2,920,712 429,172 - 429,172 193,040 - 193,040 5,565,454
Transfer to Other Reserves - - - - - - - - - - - - -
Balance being funds for future - (1,617) (1,617) (8,385) (980) (9,365) (53,344) - (53,344) - - - (64,326)
appropriations
Total (D) 2,022,530 (1,617) 2,020,913 2,912,327 (980) 2,911,347 375,828 - 375,828 193,040 - 193,040 5,501,128

229
 schedules
forming part of the financial statements Continued
Schedule-UL1

Linked Income (recovered from linked funds)* for the year ended March 31, 2018
(` in ‘000)

Life Linked Pension Linked Linked Health Linked Group Linked Group Total
Particulars Unit Unit Unit Life Unit Pension Unit
(1) (2) (3) (4) (5) (6)= (1)+(2)+(3)
+(4)+(5)
Fund administration charges 642,535 286,765 - - - 929,300
Fund management charge 9,381,300 2,149,329 116,033 486,062 439,553 12,572,277
Policy administration charge 3,600,035 345,112 77,971 - - 4,023,118
Surrender charge 55,889 159,703 - - - 215,592
Switching charge 2,949 1,053 37 - - 4,039
Mortality charge 5,917,586 22,573 763,721 - - 6,703,880
Rider premium charge 214,994 3,716 - - - 218,710
Partial withdrawal charge - - - - - -
Policy foreclosure charge (3,226) (9,547) 21,801 - - 9,028
Discontinued charges 224,248 2,182 - - - 226,430
Miscellaneous charge (46,178) (22,759) 2,552 (373,323) (288,929) (728,637)
TOTAL (UL-1) 19,990,132 2,938,127 982,115 112,739 150,624 24,173,737

* net of service tax, if any

Linked Income (recovered from linked funds)* for the year ended March 31, 2017

(` in ‘000)

Particulars Life Linked Unit Pension Linked Unit Linked Health Unit Linked Group Unit Total
(1) (2) (3) (4) (5)= (1)+(2)+(3)+(4)
Fund administration charges 755,786 295,462 - - 1,051,248
Fund management charge 7,690,747 2,382,681 100,812 870,793 11,045,033
Policy administration charge 3,149,304 449,986 85,583 - 3,684,873
Surrender charge 79,534 146,369 - - 225,903
Switching charge 3,111 1,463 40 - 4,614
Mortality charge 5,139,656 26,615 767,692 - 5,933,963
Rider premium charge 241,253 4,451 - - 245,704
Partial withdrawal charge - - - - -
Policy foreclosure charge (3,504) (21,089) 70,355 - 45,762
Discontinued charges 184,613 2,678 - - 187,291
Miscellaneous charge (36,898) (28,739) 3,465 (595,875) (658,047)
TOTAL (UL-1) 17,203,602 3,259,877 1,027,947 274,918 21,766,344

* net of service tax, if any

230
 schedules
forming part of the financial statements Continued
Schedule-UL2

Benefits Paid [Net] for the year ended March 31, 2018
(` in ‘000)

Total Unit
Linked Life Linked Pension Linked Health Linked Group Life Linked Group Pension
Linked
Sl. Linked Linked Linked
Particulars Non Unit Unit Linked Life Non-Unit Unit Non-Unit Unit Non-Unit Unit Non-Unit Unit Linked Group (16)= (3)+(6)
No. Pension Health Group
+(9)+ (12)
(1) (2) (3)= (1)+(2) (4) (5) (6)= (7) (8) (9)=(7)+(8) (10) (11) (12)= (13) (14) (15)= (13)+ +(15)
(4)+(5) (10)+(11) (14)
1 Insurance claims
(a) Claims by death 2,186,517 1,080,118 3,266,635 6,348 614,870 621,218 132 13,888 14,020 1,596 52,050 53,646 - 35,374 35,374 3,990,893
(b) Claims by maturity 233 23,508,285 23,508,518 (287) 7,278,817 7,278,530 - - - - - - - - - 30,787,048
(c) Annuities / Pension payment - - - - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal 106 78,245,859 78,245,965 31 38,618,973 38,619,004 - - - - 4,944,763 4,944,763 - 2,684,951 2,684,951 124,494,683
- Survival - - - - - - - - - - - - - - - -
- Rider 28,925 - 28,925 1,490 - 1,490 37 - 37 - - - - - - 30,452
- Health - - - - - - 558,178 128,665 686,843 - - - - - - 686,843
- Interest on unclaimed amounts - 482,269 482,269 - - - - - - - - - - - - 482,269
Sub Total (A) 2,215,781 103,316,531 105,532,312 7,582 46,512,660 46,520,242 558,347 142,553 700,900 1,596 4,996,813 4,998,409 - 2,720,325 2,720,325 160,472,188
2 Amount ceded in reinsurance
(a) Claims by death (363,155) - (363,155) - - - - - - - - - - - - (363,155)
(b) Claims by maturity - - - - - - - - - - - - - - - -
(c) Annuities / Pension payment - - - - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - - - - -
- Health - - - - - - (304,233) - (304,233) - - - - - - (304,233)
Sub Total (B) (363,155) - (363,155) - - - (304,233) - (304,233) - - - - - - (667,388)
3 Amount ceded in reinsurance
(a) Claims by death - - - - - - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - - - - - -
(c) Annuities / Pension payment - - - - - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - - - - - - - -
- Surrender - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - - - - - -
Total (A) + (B) + (C) 1,852,626 103,316,531 105,169,157 7,582 46,512,660 46,520,242 254,114 142,553 396,667 1,596 4,996,813 4,998,409 - 2,720,325 2,720,325 159,804,800
Benefits paid to claimants:
In India 2,215,781 103,316,531 105,532,312 7,582 46,512,660 46,520,242 558,347 142,553 700,900 1,596 4,996,813 4,998,409 - 2,720,325 2,720,325 160,472,188
Outside India - - - - - - - - - - - - - - - -
TOTAL (UL2) 2,215,781 103,316,531 105,532,312 7,582 46,512,660 46,520,242 558,347 142,553 700,900 1,596 4,996,813 4,998,409 - 2,720,325 2,720,325 160,472,188

Schedule-UL2
Benefits Paid [Net] for the year ended March 31, 2017
(` in ‘000)

Linked Life Linked Pension Linked Health Linked Group Total Unit Linked
Sl.
Particulars Non Unit Unit Linked Life Non-Unit Unit Linked Pension Non-Unit Unit Linked Health Non-Unit Unit Linked Group (13)= (3)+(6)+
No.
(1) (2) (3)= (1)+(2) (4) (5) (6)=(4)+(5) (7) (8) (9)= (7)+(8) (10) (11) (12)= (10)+(11) (9)+(12)
1 Insurance claims
(a) Claims by death 1,475,821 805,481 2,281,302 11,536 618,486 630,022 116 9,608 9,724 2,945 46,811 49,756 2,970,804
(b) Claims by maturity - 18,630,325 18,630,325 (1,399) 2,410,507 2,409,108 - - - - - - 21,039,433
(c) Annuities / Pension payment - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal 9 65,663,038 65,663,047 (72) 39,686,441 39,686,369 - - - - 10,482,966 10,482,966 115,832,382
- Survival - - - - - - - - - - - - -
- Rider 31,846 - 31,846 1,903 - 1,903 14 - 14 - - - 33,763
- Health - - - - - - 563,532 116,483 680,015 - - - 680,015
- Interest on unclaimed amounts - 390,569 390,569 - - - - - - - - - 390,569
Sub Total (A) 1,507,676 85,489,413 86,997,089 11,968 42,715,434 42,727,402 563,662 126,091 689,753 2,945 10,529,777 10,532,722 140,946,966
2 (Amount ceded in reinsurance)
(a) Claims by death (312,465) - (312,465) - - - - - - - - - (312,465)
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities / Pension payment - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - - - - - (312,464) - (312,464) - - - (312,464)
Sub Total (B) (312,465) - (312,465) - - - (312,464) - (312,464) - - - (624,929)
3 Amount accepted in reinsurance
(a) Claims by death - - - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities / Pension payment - - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - - - - -
- Surrender - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - - -
Total (A) + (B) + (C) 1,195,211 85,489,413 86,684,624 11,968 42,715,434 42,727,402 251,198 126,091 377,289 2,945 10,529,777 10,532,722 140,322,037
Benefits paid to claimants:
In India 1,507,676 85,489,413 86,997,089 11,968 42,715,434 42,727,402 563,662 126,091 689,753 2,945 10,529,777 10,532,722 140,946,966
Outside India - - - - - - - - - - - - -
Total 1,507,676 85,489,413 86,997,089 11,968 42,715,434 42,727,402 563,662 126,091 689,753 2,945 10,529,777 10,532,722 140,946,966

231
 schedules
forming part of the financial statements Continued
3.16. Employee benefits Experience adjustments on gratuity provisioning
Provision for staff benefits as per AS 15 (Revised):
(` in ‘000)
(a) Defined contribution plans
Period ended
 The amount recognised as an expense during the year ended March
31, 2018 is ` 91,661 thousand (year ended March 31, 2017: ` 51,520 Particulars March March 31, March 31, March 31, March 31,
thousand). 31, 2018 2017 2016 2015 2014
National Pension Scheme Defined benefit
The company has contributed ` 5,284 thousand for the year ended March obligation 1,099,789 1,007,930 787,608 656,645 593,293
31, 2018 (March 31, 2017: ` 13,851 thousand) to NPS for employees who Plan assets 1,076,895 980,154 747,780 621,030 554,816
had opted for the scheme.
Surplus/(deficit) (22,893) (27,776) (39,828) (35,615) (38,477)
(b) Defined benefit plans
Experience

adjustments
(` in ‘000) - on plan liabilities 26,665 56,420 60,235 (5,301) 26,710
Particulars Year ended
- on plan assets (986) 55,484 (30,130) 61,489 4,319
March 31, March 31,
2018 2017 Provident fund
Reconciliation of benefit obligations and planned Provident fund benefits are aimed at providing security to staff members and
assets for the period:
their dependents on retirement, disability or death. Both employee and the
Present value of the defined benefit obligations at period company contribute an equal percentage of the basic salary, a part of which
1,099,789 1,007,930
end (A)
is towards Government administered pension fund and balance portion
Fair value of plan assets at period end (B) 1,076,895 980,154 is contributed to the fund administered by trustees. The provident fund is
Net asset/(liability) recognized in Balance Sheet at end managed by ICICI Prudential Life Insurance Company Employees’ Provident
(22,893) (27,776)
of the year (B-A) Fund Trust.
Total net cost recognized as employee remuneration in
101,213 178,350 The minimum rate at which the annual interest is payable by the trust to
Revenue / Profit and loss account
members is prescribed by the Government. The Company has an obligation to
Change in defined benefit obligation:
make good the shortfall, if any, between the Government prescribed rate and
Opening obligations at April 1 1,007,930 787,608 actual return earned by the provident fund.
Service cost 107,300 88,310 (` in ‘000)
Interest cost 69,557 60,147 Year ended Year ended
Actuarial (gain)/loss (5,544) 137,735 Particulars March 31, March 31,
Past service costs - - 2018 2017
Liability assumed on transfer of employees. - - Reconciliation of benefit obligations and planned
Benefits paid (79,454) (65,870) assets for the period:
Present value of the defined benefit obligations at Present value of the defined benefit obligations at 3,379,146 2,983,343
1,099,789 1,007,930 period end (A)
period end (A)
Fair value of plan assets at period end (B) (3,379,146) (2,983,343)
Change in Plan Asset:
Opening plan assets, at fair value at April 1 980,154 747,780 (` in ‘000)
Expected return on plan assets 71,087 52,357 Year ended Year ended
Actuarial gain/(loss) (986) 55,484 Particulars March 31, March 31,
Contributions 106,095 190,403 2018 2017
Assets acquired on acquisition/(settled on divestiture) - - Net asset/(liability) recognised in Balance Sheet at
end of the year (B-A) - -
Benefits paid (79,454) (65,870)
Total net cost recognised as “Employee Benefit
Fair value of plan assets at period end (B) 1,076,895 980,154 Expense" in Revenue / Profit and loss account 122,122 105,149
Cost for the period: Change in defined benefit obligation:
Service cost 107,300 88,310 Opening defined benefit obligations 2,983,343 2,655,621
Interest cost 69,557 60,147 Current service cost 122,122 105,149
Expected return on plan assets (71,087) (52,357) Interest cost 202,746 202,282
Actuarial (gain)/loss (4,558) 82,251 Actuarial (gain)/loss 74,729 53,775
Past service cost - - Employees contribution 263,595 227,226
Liability assumed on Acquisition / (Settled on
Losses /(gains) on acquisition/divestiture - -
Divestiture) (19,565) (27,593)
Total net cost recognised as employee remuneration in Benefits paid (247,824) (233,117)
101,213 178,350
Revenue / Profit and loss account
Closing defined benefit obligation 3,379,146 2,983,343
Investment details of plan assets: Change in Fair Value of Assets:
Plan assets invested in insurer managed funds 100.00% 100.00% Opening value of plan assets 2,983,343 2,655,621
Fund earning rate 5.91% 11.16% Expected return on plan assets 262,192 235,627
Asset allocation: Actuarial gain/(loss) 15,283 20,430
Debentures and Bonds 51.49% 51.83% Contributions – Employer 122,122 105,149
Fixed deposits 0.10% 0.71% Contributions – Employee 263,595 227,226
Government securities 23.66% 21.80% Assets acquired on acquisition / (Distributed on
divestiture) (19,565) (27,593)
Equity shares 15.87% 15.78%
Benefits paid (247,824) (233,117)
Money market instruments 1.08% 0.00%
Closing value of plan assets 3,379,146 2,983,343
Others 7.80% 9.88% Cost for the period:
Total 100.00% 100.00% Service cost 122,122 105,149
Assumptions: Interest cost 202,746 202,282
Discount rate 7.35% 6.80% Expected return on plan assets (262,192) (235,627)
Salary escalation rate* 8.50% 8.50% Actuarial (gain)/loss 59,446 33,345
Estimated rate of return on plan assets # 7.50% 7.50% Total net cost recognised as employee “Employee
Expected future contribution from employer for next benefit expense” in Revenue / Profit and loss account 122,122 105,149
120,000 120,000 Investment details of plan assets:
year
Government of India Securities 54% 46%
*Salary escalation rate considered in valuation take into account impact of Corporate Bonds 36% 46%
inflation, seniority, promotion and other factors impacting future salary cost.
Equity shares of Listed Companies 0% 2%
# Estimated rate of return on plan assets is based on the expected average
long-term rate of return on investments of the Fund during the estimated term Others 10% 6%
of the obligations. Total 100% 100%

232
schedules
forming part of the financial statements Continued
Experience adjustments Company on the date the Options are granted and shall be reflected in the
award confirmation. These changes (ESOS 2005 (Revised)) were approved by
(` in ‘000) the shareholders of the Company in the Annual General Meeting held on July
Period ended 17, 2017. Further the company granted options in FY2018 under ESOS 2005
March March 31, March 31, March 31, March 31, (Revised) on July 25, 2017
Particulars
31, 2018 2017 2016 2015 2014 The Company follows intrinsic value method and hence there was no charge in
Defined benefit the Revenue Account and Profit and Loss account on account of modification
obligation 3,379,146 2,983,343 2,655,621 2,354,199 2,163,657 of the Scheme.
Plan assets 3,379,146 2,983,343 2,655,621 2,354,199 2,163,657 The salient features of tranches issued under ESOS 2005 are as stated below:
Surplus/(deficit) - - - - - Founder 2004-05 2005-06 2006-07 2007-08 2017-18
Experience adjustments: Date of Founder II
- on plan liabilities Grant March April 25, April 26, April 24, April 25, July 25,
74,729 53,775 37,592 8,487 41,092
28, 2005 2005 2006 2007 2008 2017
- on plan assets 15,283 20,430 7,835 4,431 20,136
Number 6,534,675
The assumptions used in actuarially valuing the defined benefit obligations of of options (2006-07)
granted 2,662,500 3,782,400 4,633,250 6,101,000 656,300
interest rate guarantee are as follows: 470,000
(Founder II)
March 31, March 31,
Particulars Maximum Tenth
2018 2017
term of Tenth an- anni-
Discount rate for the term of the obligation 7.35% 6.80% options niversary versary
Average historic yield on the investment portfolio 8.95% 8.99% granted Thirteenth anniversary of the date of grant of the from
Discount rate for the remaining term to maturity 8.05% 7.20% of options date of the date
of the investment portfolio grant of of vest-
Expected investment return 8.25% 8.59% options ing of
options
Guaranteed rate of return 8.55% 8.65%
Graded Vesting Period
(c) Other long term benefits
1st Year 50% of 30% of
Long term incentive scheme: options 25% of options granted options
The amount recognised as an expense during the year ended March 31, 2018 granted granted
is ` 143,577 thousand (year ended March 31, 2017: ` 133,358 thousand). 2nd Year 30% of
Liability for the scheme is determined based on actuarial valuation which has 25% of options granted options
been carried out using the projected accrued benefit method which is same as granted
the projected unit credit method in respect of past service. The assumptions 3rd Year 40% of
used for valuation are: 25% of options granted options
granted
March 31, March 31,
Particulars 4th Year - 25% of options granted -
2018 2017
Discount rate per annum 6.80% 6.50% Mode of
Equity
settlement
Compensated absence: Exercise price of all the options outstanding for all years/quarter for Founder
The amount recognised as an expense during the year ended March 31, 2018 scheme, 2004-05 scheme, 2005-06 scheme, 2006-07 scheme, Founder II,
is ` 80,893 thousand (year ended March 31, 2017: ` 89,508 thousand). 2007-08 & 2017-18 scheme is ` 30, ` 42, ` 70, ` 130, ` 130, ` 400 and ` 468.6
respectively.:
Liability for compensated absence for employees is determined based on
actuarial valuation which has been carried out using the projected accrued A summary of status of Company’s Employee Stock Option Scheme in terms
benefit method which is same as the projected unit credit method in respect of of options granted, forfeited and exercised is given below:
past service. The assumptions used for valuation are:
Year ended Year ended
March 31, March 31, March 31, 2018 March 31, 2017
Particulars
2018 2017 Number of Weighted Number of Weighted
Discount rate 7.35% 6.80% options average options average
Particulars
exercise exercise
Salary escalation rate 8.50% 8.50% price price
Leave accumulation policy of the Company is given below: Outstanding at the beginning of the 2,398,838 352.49 5,999,175 233.72
year
Criteria Level 1 to 6 Level 7 & above Add: Granted during the period 656,300 468.60 - NA
Employment upto 5 years NA 60 days Less: Forfeited/lapsed during the (82,650) 410.92 (578,575) 396.80
Employment more than 5 years 60 days 90 days period
Less: Exercised during the period (151,600) 261.08 (3,021,762) 108.33
While computing liability, 2% leave availment has been assumed for each
subsequent year following the valuation date. Outstanding at the end of the period 2,820,888 382.70 2,398,838 352.49
Exercisable at the end of the year 2,193,488* 358.13 2,398,838 352.49
3.17. Employee Stock Option Scheme (“ESOS”)
The Company Employees Stock Option Scheme (2005) (“ESOS 2005”) has six *Options outstanding at the end of the period less options unvested at the end
tranches namely Founder, 2004-05, 2005-06, 2006-07, Founder II and 2007-08. of the period.
ESOS 2005 permits the grant of share options up to 3% of the issued capital
Nil options are vested during the year ended March 31, 2018 and ` 39,580
of Company. The Board of Directors have approved the amendment of ESOS
thousand was realised by exercise of options during the year ended March 31,
2005 (ESOS 2005 (Revised)). As per the ESOS 2005 (Revised), the aggregate
2018 (March 31, 2017 : ` 327,337 thousand). During the year ended March 31,
number of Shares issued or issuable since March 31, 2016 pursuant to the
2018 the Company has recognized a compensation cost of ` nil (year ended
exercise of any Options granted to the Eligible Employees issued pursuant to
March 31, 2017: ` nil) as the intrinsic value of the options.
the Scheme or any other stock option scheme of the Company, shall not exceed
a figure equal to 2.64% of the number of shares issued as on March 31, 2016. Had the company followed fair value method based on binomial tree model
The maximum number of options that can be granted to any eligible employee valuing its options compensation cost for the year ended would have been
is restricted to 0.1% of the issued shares of the Company at the time of grant higher by ` 39,667 thousand (March 31, 2017: ` nil) and the proforma profit
of options. The Exercise Price shall be determined by the Board Nomination after tax would have been ` 16,158,590 thousand (March 31, 2017: ` 16,822,303
& Remuneration Committee in concurrence with the Board of Directors of the thousand). On a proforma basis, the company’s basic and diluted earnings per

233
 schedules
forming part of the financial statements Continued
share would have been ` 11.26 (March 31, 2017: ` 11.73) and ` 11.25 (March Remuneration to MD/CEO/WD:
31, 2017: ` 11.72) respectively. A) Information relating to the bodies that oversee remuneration.

Fair value methodology Name, composition and mandate of the main body overseeing remuneration:
The assumptions considered in the pricing model for the ESOPs granted The Board Nomination and Remuneration Committee (BNRC /Committee)
during the year ended March 31, 2018 were: is the body which oversees the remuneration aspects. The functions of the
Committee include recommending appointments of Directors to the Board,
Particulars March 31, 2018 Basis identifying persons who are qualified to become Directors and who may be
appointed in senior management in accordance with the criteria laid down
Risk-free interest 6.68% to 6.96% G-Sec yield at grant date for tenure
and recommending to the Board their appointment and removal, formulate
rate equal to the expected term of ESOPs
a criteria for the evaluation of the performance of the wholetime/independent
Expected life of 6 to 8 years Simplified method (average of Directors and the Board and to extend or continue the term of appointment
the options minimum and maximum life of options) of independent Director on the basis of the report of performance evaluation
Dividend yield 0.96% Based on recent dividend declared of independent Directors, recommending to the Board a policy relating to the
remuneration for the Directors, Key Managerial Personnel and other employees,
Expected 15.82% to Based on historical volatility determined
recommending to the Board the remuneration (including performance bonus
volatility 16.39% on the basis of Nifty 50
and perquisites) to wholetime Directors (WTDs), commission and fee payable
The weighted average price of options exercised during the year ended March to non-executive Directors subject to applicable regulations, approving the
31, 2018 is ` 261.08 (year ended March 31, 2017: ` 108.3). policy for and quantum of bonus payable to the members of the staff including
senior management and key managerial personnel, formulating the criteria for
The weighted average remaining contractual life of options outstanding at the
determining qualifications, positive attributes and independence of a Director,
end of the period is as follows:
framing policy on Board diversity, framing guidelines for the Employees Stock
At March 31, 2018 At March 31, 2017 Option Scheme (ESOS) and decide on the grant of the Company’s stock
options to employees and WTDs of the Company.
Options Weighted Options Weighted
Exercise price outstanding average outstanding average External consultants whose advice has been sought, the body by which they
range (in `) remaining remaining were commissioned and in what areas of the remuneration process:
contractual life contractual life
(in years) (in years) The Company did not take advice from an external consultant on any area of
remuneration during the year ended March 31, 2018.
130 340,113 2.1 422,113 3.1
400 1,853,375 0.1 1,976,725 1.1 Scope of the Company’s remuneration policy (e.g. by regions, business
468.6 188,220 10.3 - - lines), including the extent to which it is applicable to foreign subsidiaries
and branches:
468.6 188,220 11.3 - -
The Compensation Policy of the Company as last amended and approved by
468.6 250,960 12.3 - - the BNRC and the Board at its Meeting held on April 25, 2017, which covers all
Total 2,820,888 2.8 2,398,838 1.4 employees of the Company.
ICICI Bank Limited (“Holding company”) has granted options to certain employees Type of employees covered and number of such employees:
of the Company. Holding company follows an intrinsic value method and has
All employees of the Company are governed by the compensation policy. The
recognized a cost of ` nil for the year ended March 31, 2018, for the options
total number of permanent employees governed by the compensation policy
granted to employees of the Company (year ended March 31, 2017: ` nil).
of the Company at March 31, 2018 was 15,780.
3.18. Foreign exchange gain/loss B) Information relating to the design and structure of remuneration process.
Transactions in foreign currencies are recorded at exchange rate prevailing on Key features and objectives of remuneration policy:
the date of transaction. The exchange difference between the rate prevailing
on the date of transaction and on the date of settlement is recognised as The Company has under the guidance of the Board and the BNRC, followed
income or expense, as the case may be. The net foreign exchange loss debited compensation practices intended to drive meritocracy within the framework
to Revenue account for the year ended March 31, 2018 is ` 1,367 thousand of prudent risk management. This approach has been incorporated in the
(year ended March 31, 2017: ` 3,221 thousand). Compensation Policy, the key elements of which are given below:

3.19. Earnings per share Effective governance of compensation:

The BNRC has oversight over compensation. The Committee defines Key
(` in ‘000) Performance Indicators (KPIs) for the Organization and the performance
Sr. March 31, March 31, threshold for the bonus based on the financial and strategic plan approved
Particulars
No. 2018 2017 by the Board. The KPIs include both quantitative and qualitative aspects.
I Net profit as per profit and loss account The BNRC assesses organizational performance as well as the individual
available for equity shareholders for both performance of WTDs and equivalent positions. Based on its assessment, it
basic and diluted earnings per equity makes recommendations to the Board regarding compensation for WTDs and
share of ` 10 each 16,198,259 16,822,303 equivalent positions and bonus for employees, including senior management
II Weighted average number of equity and key management personnel.
shares for earnings per equity share Alignment of compensation philosophy with prudent risk taking:
(a) For basic earnings per equity share 1,435,429,351 1,434,273,461 The Company seeks to achieve a prudent mix of fixed and variable pay, with a
(b) For diluted earnings per equity share higher proportion of variable pay at senior levels. Compensation is sought to be
Number of equity shares for basic aligned to both financial and non-financial indicators of performance including
earnings per equity share as per (II) (a) 1,435,429,351 1,434,273,461 aspects like risk management and customer service. In addition, the Company
has an employee stock option scheme aimed at aligning compensation to long
Add: Weighted average outstanding
term performance through stock option grants that vest over a period of time.
employee stock options 256,567 979,023
Whether the Remuneration Committee reviewed the firm’s remuneration
Weighted number of equity shares 1,435,685,918 1,435,252,484
policy during the past year, and if so, an overview of any changes that
for diluted earnings per equity share
were made:
III Earnings per equity share
The Compensation & Benefits Policy on remuneration of Non-executive
Basic (in `) 11.28 11.73 Directors and Managing Director/Chief Executive Officer/Whole Time Directors
Diluted (in `) 11.28 11.72 of Insurers was reviewed, amended and approved by the Board of Directors
held April 25, 2017.
3.20. Managerial Remuneration
C) Description of the ways in which current and future risks are taken into
IRDAI has issued guidelines on August 05, 2016 on remuneration of Non- account in the remuneration processes.
Executive Directors and Managing Director (‘MD’) /Chief Executive Officer
To ensure effective alignment of compensation with prudent risk taking, the
(‘CEO’) /Whole Time Directors (‘WTD’), which have prescribed certain
Company shall take into account adherence to the risk framework to ensure
qualitative and quantitative disclosures. The disclosures for year ended March
remuneration is adjusted for all types of risks in conjunction with other pre-
31, 2018 are given below:

234
schedules
forming part of the financial statements Continued
defined performance objectives. Remuneration payout shall be sensitive to the (` in ‘000)
time horizon of the risks involved and symmetric to risk outcomes.
FY2017 Sandeep Puneet Sandeep Total
• Compensation is aligned to both financial and non-financial indicators
Bakhshi Nanda Batra
of performance including controls like risk management, process
perspective, customer perspective and others. Basic 19,871 11,178 8,742 39,791
• Prudent behavior is assessed through a Good Order Index for senior
Retirals (Only PF) 2,384 1,341 1,049 4,774
management level employees.
• These business objectives are balanced in nature, and comprise a holistic Allowances1 15,116 11,876 12,981 39,973
mix of financial, customer, people, and process/quality and compliance
Variable Pay
objectives.
• Acts of gross negligence and integrity breach are covered under the Deferred Variable Pay 14,816 7,505 1,616 23,937
purview of the compensation policy. (paid during FY2018)
• The deferred part of the variable pay (performance bonus) will be subject
Non deferred variable 9,784 6,617 6,517 22,918
to malus, under which, the Company will prevent vesting of all or part of
pay (paid during
the variable pay in the event of an enquiry determining gross negligence
FY2018)
or integrity breach.
• The quantum of bonus does not exceed a certain percentage (as Perquisites 822 11,003 6,042 17,867
stipulated in Compensation policy) of total fixed pay in a year, for Whole
Total 62,794 49,520 36,949 149,262
time Directors if the quantum of bonus exceeds a pre-defined threshold
percentage of the total fixed pay, a part of the bonus is deferred and paid Shares linked 830,000 275,500 232,750 1,338,250
over a period. Instruments (Employee
Stock Options)2
D) Description of the ways in which the Company seeks to link performance
during a performance measurement period with levels of remuneration. 1. Allowances include NPS, Superannuation, Leave encashment and Medical
The Company follows a philosophy of meritocracy, which is the relative as per policy. For Sandeep Bakhshi, allowances also includes Interest subsidy.
differentiation of employees based on performance delivered. The design 2. Includes options granted by ICICI Bank Limited.
of the variable pay is linked to the individual employee’s performance rating
Perquisites (evaluated as per Income-Tax rules wherever applicable and
which is arrived at basis assessment of performance delivered against a set of
otherwise at actual cost to the Company) such as the benefit of the gas, electricity,
pre-defined performance objectives. These objectives are balanced in nature,
furnishing, club fees, group insurance, use of car and telephone at residence or
and comprise a holistic mix of financial, customer, people, and process/quality
reimbursement of expenses in lieu thereof, medical reimbursement, leave and
and compliance objectives. To ensure effective alignment of compensation
leave travel concession, education benefits, provident fund, superannuation
with prudent risk parameters, the Company will take into account various
fund and gratuity, were provided in accordance with the scheme(s) and rule(s)
risk parameters along with other pre-defined performance objectives of the
applicable from time to time.
Company. Prudent behavior is assessed through a Good Order Index for
(` in ‘000)
middle and senior management level employees.
Outstanding Deferred Remuneration Sandeep Puneet Sandeep
Quantitative disclosures: for FY 2018 Bakhshi Nanda Batra
(` in ‘000)
Cash1 16,088 10,881 10,596
Particulars FY2018 FY2017 Shares - - -
Number of MD/CEO/WTDs 3 3 Shares linked Instruments2 1,862,850 675,235 538,643
Number and total amount of sign on awards - - Other Forms - - -
made during the financial year (` in ‘000)
Details of guaranteed bonus, if any, paid as - - Outstanding Deferred Remuneration Sandeep Puneet Sandeep
joining / sign bonus for FY 2017 Bakhshi Nanda Batra
Total amount of outstanding deferred Given below Given below Cash1 11,249 7,608 7,577
remuneration, split into cash, shares and share
Shares - - -
linked instruments and other forms
Shares linked Instruments2 1,792,000 594,500 566,000
Total amount of deferred remuneration paid out
in the financial year Given below Given below Other Forms - - -

Breakup of amount of remuneration awarded Given below Given below

1
 ash Amounts mentioned in above tables are outstanding deferred bonus and
C
for the financial year to show fixed and LTRS of previous year/s and is paid post March 31, 2018 & March 31, 2017
variable, deferred and non-deferred respectively. The above figure does not include the bonus payable for the
respective year which is paid in subsequent year.
(` in ‘000) 2
 ptions mentioned in above tables are outstanding options to be vested as on
O
March 31, 2018 & March 31, 2017. For FY2018, ICICI Bank options adjusted post
FY2018 Sandeep Puneet Sandeep Total issuance of Bonus options in June 2017. FY 2018 includes options granted by ICICI
Bakhshi Nanda Batra Bank Ltd. and ICICI Prudential Life Insurance Co Ltd. The table excludes special
Basic 22,851 12,854 9,792 45,497 grant of stock options granted in FY2016 approved by IRDA on June 3, 2016
aggregating to 1,000,000 for Sandeep Bakhshi, 435,000 for Puneet Nanada and
Retirals (Only PF) 2,742 1,543 1,175 5,460 367,500 for Sandeep Batra. (as they are on conditional vesting)
Allowances1 17,783 13,948 15,135 46,867
Remuneration to non-executive directors
Variable Pay (` in ‘000)
Deferred Variable Pay 4,537 3,069 3,065 10,671 Year ended Year ended
(paid during FY2018) Particulars March 31, March 31,
2018 2017
Non deferred variable 14,064 9,512 9,124 32,701
pay (paid during Sitting fees paid 5,020 3,900
FY2018)
Reimbursement of expenses 35 5,011
Perquisites 936 533 454 1,922
Profit related commission* 4,498 4,186
Total 62,914 41,459 38,744 143,117
Total 9,553 13,097
Shares linked 838,750 335,500 251,625 1,425,875 * Against the provision of ` 4,200 thousand made in the FY2017, ` 4,186
Instruments (Employee thousand was paid in FY2018. Provision made for FY 2018 amounts to ` 4,498
Stock Options)2 thousand.

235
 schedules
forming part of the financial statements Continued
3.21. Commitments b. Assets encumbered with Clearing Corporation of India Limited (CCIL)
 Commitments made and outstanding (net of advances) for Company’s (` in ‘000)
investment in Real estate (Investment property) is ` nil (March 31, 2017 ` nil).
At March 31, 2018 At March 31, 2017
Estimated amount of contracts remaining to be executed on fixed assets to the Particulars Market value Amortised Market value Amortised
extent not provided for (net of advance) is ` 346,179 thousand (March 31, 2017: cost cost
` 112,616 thousand) Pledged under securities segment
There are no loan commitments made by the Company (March 31, 2017 ` nil). Government 3,746,922 3,793,836 2,067,500 1,959,467
securities
3.22. Investments Cash 204,200 204,200 70,000 70,000
a. The investments are made from the respective funds of the Policyholders’ Pledged under Collateralized Borrowing and Lending Obligation segment
or Shareholders’ and investment income thereon has been accounted (CBLO)
accordingly. Government 212,789 207,055 218,000 207,120
b. All investments are performing investments. securities
3.23. Restructured assets Cash 100 100 100 100
There are no assets including loans subject to re-structuring (March 31, 2017: Pledged for Default Fund under securities segment
` nil) Government 59,400 58,126 60,660 58,015
securities
3.24. Conversion of Investment Property to Fixed Assets. Cash - - - -
During the year ended March 31, 2018, the Company has converted certain Pledged for Default Fund under CBLO segment
investment properties held in the Participating and Shareholder’s funds to Government 19,800 19,375 20,220 19,338
fixed assets for self-use. These investment properties have been converted securities
to fixed assets based on the approval and stipulations of Insurance Regulatory Cash - - - -
and Development Authority of India.
Consequently, based on the valuation reports obtained from independent 
Terms of pledge: Physical custody of the securities is maintained with the CCIL,
valuers, investment properties held in the Participating fund at a cost of ` however interest accrued on these securities is received by the Company.
1,077,435 thousand have been transferred to the Shareholders’ fund as fixed The Company is not entitled to any interest income on the money deposited
assets at a fair value of ` 1,132,099 thousand thereby resulting in a gain of ` with the CCIL towards margin requirements. These deposits, both securities
54,664 thousand in Participating fund. Consequently, the revaluation reserve and cash, can be invoked by CCIL in case of any default by the Company in
amounting to ` 19,549 thousand has been reversed. settlement of trades in Securities and CBLO segment.
The Investment property held in the Shareholders’ fund amounting to ` 716,468 c. Other encumbrances
thousand has been reclassified from investment property to fixed assets at the
The Company has placed fixed deposits with banks for issuing bank guarantee/
cost of ` 703,632 thousand and the revaluation reserve amounting to ` 12,836
based on the directive from the Court as per below details:
thousand has been reversed.
The above fixed assets are depreciated as per the accounting policy (` in ‘000)
March 31, March 31,
3.25. Valuation of Investment property Particulars
2018 2017
 In accordance with the IRDAI Regulations, 2002 (Preparation of Financial
Fixed deposit placed with bank based on the - 606
Statements and Auditors’ Report of Insurance Companies), the Company’s
directive from the Hon. Patna High Court in case
investment property has been revalued. The Company has revalued all its
of one death claim settlement pertaining to a
investment properties held for more than one year and market value for such
deceased policyholder
properties is based on valuation performed by an independent valuer at March
31, 2018. The opinion on market value by the independent valuer, is prepared Bank guarantees issued:
in accordance with the “The RICS Valuation Standards” published by the Royal -
in favour of Sub-Divisional Judicial Magistrate, 5,000 5,000
Institution of Chartered Surveyors (“RICS”), subject to variation to meet local Patna with respect to a criminal case filed against
established law, custom, practice and market conditions. The methods used in a fraudulent policyholder
valuation of property includes “Direct comparable approach”. The real estate
investment property is accordingly valued at ` 4,666,000 thousand at March - towards purchase of postage on policy welcome 2,000 2,000
31, 2018 (March 31, 2017: ` 6,338,958 thousand). The historical cost of the kit document
property is ` 3,836,532 thousand (March 31, 2017: ` 5,617,599 thousand). Refer -
in favour of UIDAI deposit towards enabling 2,500 -
note 3.24 on conversion of investment property to fixed assets. Aadhaar Authentication services

3.26. Impairment of investment assets
 In accordance with the impairment policy of the Company, diminution in
the value of investments has been recognised under the head “Provision for
diminution in the value of investments (Net)” in the Revenue account and the
Profit and Loss account. The total impairment loss recognised for the year
ended March 31, 2018 is ` 50,872 thousand (year ended March 31, 2017: `
65,125 thousand).
3.27. Encumbrances of assets
The assets of the Company are free from all encumbrances except to the
extent assets or monies are required to be deposited as margin contributions
for investment trade obligations of the Company or as mandated by the court,
as detailed below:
a. Assets deposited with National Securities Clearing Corporation Limited
(NSCCL) and Indian Clearing Corporation Limited (ICCL)
 Fixed deposit of ` 1,000,000 thousand (March 31, 2017: ` 1,000,000
thousand) and ` 100,000 thousand (March 31, 2017: ` 100,000 thousand)
has been deposited with NSCCL and ICCL respectively towards margin
requirement for equity trade settlement.
Terms of pledge: Physical custody of the fixed deposits are with respective
 Sheet as the Company retains all the associated risks and rewards of these
clearing houses, however the income accrued on these deposits shall
be passed on to the Company on the maturity of the deposits. These
deposits can be invoked by the clearing houses in case of any default by
the Company in settlement of equity transactions.
- in lieu of earnest money deposit towards tender of - 229
Indian Oil Corp Refineries Trust for administration
of EDLI scheme
-
in favour of Dr. Balabhai Nanavati Hospital to 500 500
provide service with respect to health claims
settlements
-
in favour of National Stock Exchange of India 575,679 575,679
Limited as part of listing obligation
- in favour of Cleartrip Private Limited for timely - 100
performance of obligations as per the terms of
the agreement
3.28. Assets to be deposited under local laws
There are no assets required to be deposited by the Company under any local
laws or otherwise encumbered in or outside India at March 31, 2018 (March 31,
2017: ` nil) except the assets disclosed in the note 3.27.
3.29. Securities Lending and Borrowing Scheme (SLB)
Equity shares transferred under SLB continue to be recognised on the Balance
securities.
The value of equity shares lent by the Company under SLB and outstanding at
March 31, 2018 is ` 1,044,030 thousand (March 31, 2017: ` nil).

236
schedules
forming part of the financial statements Continued
3.30. Reverse Repo transactions in Government securities/Corporate Debt Securities
Disclosures pursuant to IRDAI notification ref IRDA/F&I/CIR/INV/250/12/2012 dated December 4, 2012:
(` in ‘000)
Particulars Minimum outstanding Maximum outstanding Daily average outstanding Outstanding at
during the year during the year during the year March 31
FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 FY2017
Securities sold under repo
i. Government Securities - - - - - - - -
ii. Corporate debt - - - - - - - -
securities
Securities purchased under reverse repo
i Government Securities - 4,999,951 - 4,999,951 - 4,999,951 - -
ii. Corporate debt - - - - - - - -
securities

3.31. Value of investment contracts where settlement or delivery is pending is as follows

(` in ‘000)
Particulars March 31, 2018 March 31, 2017
Shareholders Policyholders Unit linked Shareholders Policyholders Unit linked
Purchases where deliveries are pending 93,117 1,936,118 9,122,120 107,999 1,075,545 8,294,898
Sales where receipts are pending - 1,018,156 6,744,802 1,770,293 4,310,853 11,267,468
There are no investment contracts where sales have been made and payments are overdue at the Balance Sheet date.

3.32. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
There are no payments made to or dues outstanding to Micro, Small and Medium Enterprises beyond the timelines prescribed by the MSMED Act (March 31, 2017: ` nil).

3.33. Additional disclosures on expenses

The additional disclosures on expenses pursuant to the IRDAI Circular 067/IRDA/F&A/CIR/MAR-08 dated March 28, 2008 have been detailed herein below:
(` in ‘000)
Particulars FY2018 FY2017
Outsourcing expenses 724,435 3,234,523
Business development expenses 914,355 1,697,207
Market support expenses - 5,832,020

3.34. Disclosure on fines and penalties

The additional disclosures with respect to fines and penalties for penal actions pursuant to the IRDAI circular no. IRDA/F&A/CIR/232/12/2013 dated 11th December 2013
paid during the year ended March 31, 2018 have been detailed below:
(` in ‘000)

Sr. Authority Non-compliance/ Penalty Penalty paid Penalty waived/

No. violation awarded Reduced
1 Insurance Regulatory and Development Authority of India NIL -  - -
2 GST Authorities NIL -  - -
3 Income Tax Authorities NIL -  - -
4 Any other Tax Authorities NIL -  - -
5 Enforcement Directorate / Adjudicating Authority / Tribunal or any NIL -  - -
Authority under FEMA
6 Registrar of Companies / National Company Law Tribunal /
Company Law Board / Department of Corporate Affairs or any
Authority under Companies Act, 2013
7 Penalty awarded by any Court / Tribunal for any matter including NIL -  - -
claim settlement but excluding compensation
8 Competition Commission of India NIL -  - -
9 Any other State / Central / Local Government / Statutory Authority
Shop and Establishment Act For Non compliance of provisions of 2  2 -
shops and Establishment Act
Equal Remuneration Act NIL
Electricity Act Non payment of electrical dues 54  54 -
Contract Labour (Regulation and Abolishment) Act NIL -  - -
Profession Tax Act NIL -  - -
Industrial Dispute Act NIL - - -
Maternity Benefit Act For non compliance of maintenance of 15  15 -
registers of the employees in branch
under Maternity Benefit Act
Payment of Gratuity Act NIL
Others
Child Labour Act For non compliance of display of abstracts 5 5 -
of Child Labour Act in branch office
Minimum Wages Act For non compliance of u/s 22 a of 1 1 -
Minimum Wages Act
Total 77 77 -

237
 schedules
forming part of the financial statements Continued
Penalties awarded to and penalties paid by the company during the year ended March 31,2017 is as follows
(` in ‘000)
Sr. Authority Non-compliance / violation Penalty Penalty paid Penalty waived/
No. awarded Reduced
1 Insurance Regulatory and Development Authority of India IRDAI has levied a penalty for other
payments to/ arrangements with
2,000  2,000 -
group master policyholders and
insurance intermediaries
2 Service Tax Authorities NIL -  - -
3 Income Tax Authorities NIL -  - -
4 Any other Tax Authorities NIL -  - -
5 Enforcement Directorate / Adjudicating Authority / Tribunal or any NIL -  - -
Authority under FEMA
6 Registrar of Companies / National Company Law Tribunal / Company NIL -  - -
Law Board / Department of Corporate Affairs or any Authority under
Companies Act, 2013
7 Penalty awarded by any Court / Tribunal for any matter including claim NIL -  - -
settlement but excluding compensation
8 Competition Commission of India NIL -  - -
9 Any other State / Central / Local Government / Statutory Authority
Shop and Establishment Act Non compliance to section 29, R 3 3 -
– 24(11) of Karnataka shops and
Commercials Establishment Act.
Non compliance to section 29 of 4  4 -
Kerala Shops and Commercials
Establishments Act and Sec 22 of
Minimum Wages Act.
Equal Remuneration Act NIL - - -
Electricity Act NIL -  - -
Contract Labour (Regulation and Abolishment) Act NIL -  - -
Profession Tax Act NIL -  - -
Industrial Dispute Act NIL -  - -
Maternity Benefit Act NIL -  - -
Payment of Gratuity Act NIL -  - -
Others
Minimum Wages Act Non compliance under section of 5 5 -
Minimum Wages Act
Payment of Wages Act Non compliance under section 13(a) of 2 2 -
Payment of Wages Act
Total 2,014 2,014 -

3.35. Disclosures on other work given to auditors

Pursuant to Corporate Governance Guidelines issued by the IRDAI on May 18, 2016 the additional work entrusted to the statutory auditor is given below:

Name of the Auditor Services rendered FY2018 FY2017

B S R & Co. LLP Report on restated financial statements, the related certificates and the comfort letters in - 16,905
relation to the offering of the Company’s equity shares by certain selling shareholders.
Walker Chandiok & Co. LLP - 6,459
In accordance with SEBI rules, the remuneration disclosed above has been reimbursed by the selling shareholders and hence does not reflect as charge in Company’s
Profit and Loss account.

238
schedules
forming part of the financial statements Continued
3.36. Sector-wise percentage of business
d) Number and percentage of policies revived:
Sector wise break-up of policies issued, lives covered and gross premium
underwritten during the year is as follows: Year ended Year ended
Particulars March 31, March 31,
Sector FY 2018 FY 2017
2018 2017
Rural – Number of policies 177,452 163,146
Number of policies revived 131,683 142,132
– Percentage of total policies 21.2% 23.2%
Social – Gross premium underwritten for Number of policies discontinued 356,639 352,190
new lives (` ‘000) 42,547 31,998 Percentage of policies revived 36.92% 40.4%
– Number of policies issued (including
e) Charges imposed/readjusted on account of discontinued policies/revival
group business) 65,761 52,586
of discontinued policies are as follows:
– Number of new lives covered 403,824 307,340 (` in ‘000)
– Percentage of total lives 10.4% 11.3%
Total – Number of policies (including group Year ended Year ended
business) 837,130 702,734 Particulars March 31, March 31,
2018 2017
– Number of total lives 3,887,018 2,722,109
Charges imposed on account of discontinued policies 411,589 328,164
3.37. Risk retained and reinsured Charges readjusted on account of revival of (146,043) (113,162)
Extent of risk retained and reinsured based on sum at risk, is as follows: discontinued policies
At March At March Total 265,546 215,002
Particulars
31, 2018 31, 2017
Individual business 3.39. Statement containing names, descriptions, occupations of and directorships
held by the persons in charge of management of the business under Section
Risk retained 43% 46%
11 (2) of Insurance Act, 1938 (amended by the Insurance Laws (Amendment)
Risk reinsured 57% 54% Act, 2015)
Group business
Name of person in-charge : Mr. Sandeep Bakhshi
Risk retained 70% 70%
Designation of person in-charge : Managing Director & CEO
Risk reinsured 30% 30%
Occupation of person in-charge : Service
3.38. Discontinued Policy Fund Directorships held by the person : ICICI Prudential Pension Funds
Pursuant to the IRDAI circular number IRDA/Reg/2/52/2010 dated July 1, 2010, In-charge during the year or at Management Company Limited,
the following details are disclosed with respect to policies discontinued either on March 31, 2018 Chairman
customer request or for non-payment of premium amount within the grace period
3.40. Extra allocation
a) Movement in funds for discontinued policies: Total extra allocation made with respect to group products (Group Unit Linked
(` in ‘000) Superannuation and Group Unit Linked Employee Benefit Plan) for the year
At March At March ended March 31, 2018 is ` nil (for year ended March 31, 2017: ` 775 thousand).
Particulars
31, 2018 31, 2017 The amount of recovery towards extra allocation for the year ended March 31,
Opening balance of funds for discontinued policies 39,410,575 33,044,310 2018 is ` 7,733 thousand (year ended March 31, 2017: ` 7,755 thousand).
Add: Fund of policies discontinued during the year 40,632,325 26,384,843
Less: Fund of policies revived during the year (16,119,850) (10,691,135) 3.41. Dividend
Add: Income on investments of fund 3,112,537 2,840,033 Interim dividend appropriation for the year ended March 31, 2018 is ` 5,874,239
thousand (year ended March 31, 2017: ` 6,645,630 thousand) including
Less: Fund management charges (285,180) (222,120)
dividend distribution tax of ` 993,586 thousand (year ended March 31, 2017: `
Less: Amount refunded to policyholders during (14,862,312) (11,945,356) 1,124,058 thousand).
the year *
The Board of Directors have also proposed a final dividend of ` 4,737,146
Closing balance of fund for discontinued policies 51,888,095 39,410,575
thousand (year ended March 31, 2017: ` 5,023,715 thousand). The dividend
*includes ` 4,409 thousand of policy cancellation charges on account of null
distribution tax on the same amounts to ` 973,734 thousand (year ended March
and void
31, 2017: ` 1,022,710 thousand)
b) Number of policies discontinued during the year ended March 31, 2018 is
Final dividend shown in previous year of ` 1,142 thousand and dividend
127,524 (year ended March 31, 2017: 94,884).
distribution tax of ` 233 thousand on the same pertains to dividend on 543,828
c) Percentage of discontinued to total policies (product wise): equity shares for year ended March 31, 2016 and allotted between date of
Board Meeting i.e. April 26, 2016 and Record Date i.e. June 22, 2016.
March 31, March 31,
Product Name Unclaimed dividend of ` 4,768 thousand at March 31, 2018 (at March 31, 2017:
2018 2017
` 697 thousand) represents dividend paid but not claimed by shareholders, and
ICICI Pru Elite Wealth II 14.27% 7.38%
are represented by a bank balance of an equivalent amount.
ICICI Pru Easy Retirement 13.46% 9.09%
ICICI Pru Guaranteed Wealth Protector 13.35% 9.43%
ICICI Pru Wealth Builder II 11.80% 6.38%
ICICI Pru Elite Life II 11.72% 5.89%
ICICI Pru Smart Life RP 11.09% 9.17%
ICICI PruShubh Retirement 10.09% 7.50%
ICICI Pru Elite Wealth 9.09% 5.86%
ICICI Pru Wealth Builder 8.19% 5.00%
ICICI Pru Elite Life 7.71% 5.07%
ICICI PruSmartKId Premier 3.20% 4.13%
ICICI PruLifeStage Wealth II 3.01% 3.40%
ICICI PruPinnacle Super 2.00% 4.09%
ICICI PruLifeTime Premier 1.61% 2.24%
ICICI Pru LifeTime Classic 0.23% 0.00%
ICICI Pru Elite Life Super 0.03% 0.00%
ICICI Pru Elite Wealth Super 0.03% 0.00%
ICICI PruPinnacle II 0.01% 0.05%

239
 schedules
forming part of the financial statements Continued
3.42. Summary of financial statements
(` in lacs)

Sr.No. Particulars FY2018 FY2017 FY2016 FY2015 FY2014

Policyholders' Account
1 Gross premium income 2,706,877 2,235,400 1,916,439 1,530,662 1,242,865
2 Net premium income # 2,681,068 2,215,525 1,899,870 1,516,045 1,228,265
3 Income from investments (net)## 1,125,638 1,497,044 119,573 1,871,770 920,825
4 Other income 14,528 6,085 2,088 5,938 11,190
Contribution from the Shareholders a/c 7,528 180 - 4,146 9,465
Fees and Charges 1,993 1,868 2,088 1,792 1,725
Income on unclaimed amount of policyholders 5,007 4,037 - - -
5 Total income 3,821,234
6 Commissions 140,327 75,892 61,998 55,317 62,749
7 Brokerage - - - - -
8 Operating expenses related to insurance business@ 259,753 277,953 224,001 195,844 192,653
9 Provisions for tax 12,007 7,884 7,035 5,040 4,374
10 Total Expenses 412,087
11 Payment to policy holders * 1,728,079 1,499,788 1,242,742 1,225,736 1,208,334
12 Increase in actuarial liability 582,385 491,474 299,603 344,627 278,489
13 Provision for Linked Liabilities 962,364 1,258,281 51,945 1,450,984 287,684
14 Surplus/(Deficit) from operations 136,319
Shareholders' Account
15 Total income under Shareholders Account @^^ 74,439 69,322 59,518 53,351 37,109
16 Total expenses under Shareholder's Account 3,876 3,796 3,126 4,537 1,141
17 Profit /(loss) before tax 171,956 178,501 177,157 158,528 152,921
18 Provisions for tax 9,974 10,278 12,111 (4,901) (3,745)
19 Profit/ (loss) after tax 161,982
20 Profit /(loss) carried to Balance sheet 169,603 126,830 25,077 4,820 (58,878)
MISCELLANEOUS
21 (A) Policyholders account:
Total funds ** 13,061,107 11,489,408 9,657,844 9,326,570 7,462,421
Total Investments 13,079,082 11,494,571 9,681,141 9,363,549 7,476,714
Yield on investments (%)^ 9.2% 14.1% 1.3% 22.2% 12.8%
(B) Shareholders account :
Total funds 688,445 640,804 532,478 526,782 439,302
Total Investments 774,929 664,026 621,567 585,677 535,277
Yield on investments (%)^ 10.3% 10.3% 9.9% 9.5% 7.0%
22 Yield on total investments^ 9.2% 13.9% 1.8% 21.4% 12.4%
23 Paid up equity capital 143,550 143,535 143,232 143,172 142,926
24 Net worth 688,445 640,804 532,478 526,782 439,302
25 Total Assets 13,837,368
26 Earnings per share
Basic earnings per share (`) 11.28 11.73 11.53 11.43 10.96
Diluted earnings per share (`) 11.28 11.72 11.51 11.41 10.94
27 Book value per share (Rs.) 47.96
# Net of reinsurance
## Net of losses (includes diminution in the value of investments)
@ Includes unit fund expenses
* Inclusive of interim bonuses, if any
** Includes Provision for linked liabilities
^ Investment income/((Opening investments + Closing investments)/2)
^^ Includes other income of profit and loss account

240
schedules
forming part of the financial statements Continued
3.43 Accounting ratios
For the year ended March 31, 2018

Particulars FY 2018 FY 2017

1 New business premium income growth (segment-wise)
Participating Life 28.9% (10.6%)
Participating Pension (100.0%) 100.0%
Non Participating 42.5% 123.8%
Non Participating Variable (60.5%) NA
Non Participating Variable Pension (93.3%) NA
Annuities Non Participating 51.0% 10.2%
Health NA (104.4%)
Linked Life 16.2% 33.2%
Linked Pension (3.4%) (7.5%)
Linked Health (19.4%) 4.5%
Linked Group1 (21.9%) (60.6%)
2 Net retention ratio
(Net premium divided by gross premium) 99.0% 99.1%
3 Ratio of expenses of management
(Expenses of management including commission divided by the total gross direct premium) 12.7% 13.9%
4 Commission Ratio
(Gross commission paid to Gross premium) 5.2% 3.4%
5 Ratio of policyholders liabilities to shareholders funds 1,909.9% 1,802.4%
6 Growth rate of shareholders fund2 7.4% 20.3%
7 Ratio of surplus to policyholders liability
Participating Life 2.3% 1.3%
Participating Pension 2.6% 3.2%
Non Participating 1.3% 1.8%
Non Participating Variable 0.7% (1.8%)
Non Participating Variable Pension 0.5% (1.3%)
Annuities Non Participating (2.8%) 4.6%
Health 121.8% 47.3%
Linked Life 0.6% 0.3%
Linked Pension 2.1% 1.8%
Linked Health 3.6% 4.2%
Linked Group1 N.A 0.3%
Linked Group Life1 0.2% N.A
Linked Group Pension1 0.4% N.A
8 Change in networth (` in Lacs) 47,641 108,326
9 Profit after tax / Total income 4.2% 4.4%
10 (Total Real Estate + Loans) / Cash & invested assets 0.6% 0.7%
11 Total Investment / (Capital + Surplus) 2,012.4% 1,897.4%
12 Total Affiliated Investment / (Capital+Surplus) 6.3% 7.0%
13 Investment Yield (Gross and Net)
A. Without unrealised gains
- Shareholders' Fund 11.5% 11.9%
- Policyholders' Fund
- Non Linked
Par 11.0% 9.7%
Non Par 8.0% 8.4%
- Linked
Non Par 10.4% 11.0%

B. With unrealised gains

- Shareholders' Fund 9.9% 12.3%
- Policyholders' Fund
- Non Linked
Par 7.0% 14.0%
Non Par 6.3% 13.2%
- Linked
Non Par 8.1% 15.4%
14 Conservation Ratio
Participating Life 93.0% 90.8%
Participating Pension 83.8% 92.3%
Non Participating 89.4% 94.8%
Non Participating Variable NA NA
Non Participating Variable Pension NA NA
Annuities Non Participating NA NA
Health 86.0% 88.9%
Linked Life 83.4% 81.1%

241
 schedules
forming part of the financial statements Continued

Particulars FY 2018 FY 2017

Linked Pension 77.3% 77.6%
Linked Health 86.5% 83.8%
Linked Group1 132.3% 68.3%
15 Persistency Ratio2
(a) by premium
13th month 87.8% 85.7%
25th month 78.8% 73.9%
37th month 68.9% 66.8%
49th month 63.6% 59.3%
61st month 54.8% 56.2%
(b) by count
13th month 81.7% 80.6%
25th month 73.8% 71.3%
37th month 66.4% 61.8%
49th month 58.7% 53.9%
61st month 49.3% 49.1%
16 NPA Ratio
- Gross NPA Ratio NIL NIL
- Net NPA Ratio NIL NIL
17 Solvency Ratio 252.5% 280.7%
1
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked
Group Pension from quarter ended December 2016 onwards. However, Conservation Ratio for the Linked Group Segment has been calculated at total level.
2
 he ratio is computed based on the original premiums issued. Calculations are in accordance with the IRDA circular IRDA/ACT/CIR/035/01/2014 dated January 23, 2014
T
For FY2017, policies issued in the April to March period of the relevant year have been measured on April 30, 2017. For 11m-2018, policies issued in the March to
February period of the relevant year have been measured on March 31, 2018. Group policies and policies under micro insurance products are excluded.

3.44 Statement showing the Controlled Fund of ICICI Prudential Life Insurance Company Limited
(` in crores)
Sr. 2017-2018 2016-2017
Particulars
No.
1 Computation of Controlled fund as per the Balance Sheet
Policyholders' Fund (Life Fund)
Participating
Individual Assurance 12,397 9,714
Individual Pension 829 818
Group Assurance 54 102
Group Pension 120 146
Non-participating
Individual Assurance 15,985 12,920
Group Assurance - -
Individual Annuity 2,700 2,289
Health 17 29
Group Variable Insurance 97 92
Group Variable Insurance Pension 14 14
Linked
Individual Assurance 77,134 65,243
Group Assurance - -
Individual Pension 13,143 15,889
Group Superannuation & Gratuity1 - 6,753
Group Superannuation1 3,293 -
Group Gratuity1 3,865 -
Health 963 885
Funds for Future Appropriations 878 604
Total (A) 131,489 115,498
Shareholders' Fund
Paid up Capital2 1,435 1,435
Reserves & Surplus 5,141 4,700
Fair Value Change 308 273
Total (B) 6,884 6,408
Misc. expenses not written off - -
Credit / (Debit) from P&L A/c. - -
Total (C) - -
Total shareholders' funds (B+C) 6,884 6,408
Controlled Fund (Total (A+B-C)) 138,373 121,906

242
schedules
forming part of the financial statements Continued

Sr Particulars 2017-2018 2016-2017

No.
2 Reconciliation of the Controlled Fund from Revenue and Profit & Loss Account
Opening Balance of Controlled Fund 121,906 102,565
Add: Inflow
Premium Income 27,069 22,354
Less: Reinsurance ceded (258) (199)
Net Premium 26,811 22,155
Investment Income3 11,256 14,970
Other Income 70 59
Funds transferred from Shareholders' Accounts 75 2
Total Income 38,212 37,186
Less: Outgo
(i) Benefits paid (Net) 17,226 14,964
(ii) Interim Bonus Paid 55 33
(iii) Change in Valuation of Liability 15,447 17,498
(iv) Commission 1,403 759
(v) Operating Expenses 2,033 2,363
(vi) GST/Service tax charge on linked charges 565 416
(vii) Provision for Taxation
(a) FBT - -
(b) I.T. 120 79
Total Outgo 36,849 36,112
Surplus of the Policyholders' Fund 1,363 1,074
Less: transferred to Shareholders' Account 1,089 1,132
Net Flow in Policyholders' account 274 (58)
Add: Net income in Shareholders' Fund 1,620 1,682
Net Inflow / Outflow 1,894 1,624
Add: change in valuation Liabilities 15,447 17,498
Add: Increase in Paid up Capital 4 33
Less: Dividend & dividend distribution tax (1,192) (665)
Closing balance of controlled fund as per cash flow 138,059 121,055
Change in fair value change & revaluation reserve account 314 851
Closing balance of controlled fund 138,373 121,906
As Per Balance Sheet 138,373 121,906
Difference, if any - -
3 Reconciliation with Shareholders' and Policyholders' Fund
3.1 Policyholders' Funds - Traditional-PAR and NON-PAR
Opening Balance of the Policyholders' Fund 26,727 21,143
Add: Surplus of the Revenue Account 274 (51)
Add: change in valuation Liabilities 5,820 4,817
Total 32,821 25,909
Change in fair value change & revaluation reserve account 269 818
Total 33,090 26,727
As per Balance Sheet 33,090 26,727
Difference, if any - -
3.2 Policyholders' Funds - Linked
Opening Balance of the Policyholders' Fund 88,771 76,097
Add: Surplus of the Revenue Account - (7)
Add: change in valuation Liabilities 9,627 12,681
Total 98,398 88,771
As per Balance Sheet 98,398 88,771
Difference, if any - -
3.3 Shareholders' Funds
Opening Balance of Shareholders' Fund 6,408 5,325
Add: net income of Shareholders' account (P&L) 1,620 1,682
Add: Infusion of Capital 4 33
Less: Dividend & dividend distribution tax (1,192) (665)
Closing Balance of the Shareholders' fund 6,840 6,375
Change in fair value change 45 33
Closing Balance of the Shareholders' fund 6,885 6,408
As per Balance Sheet 6,885 6,408
Difference, if any - -
1
 s required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked
A
Group Pension from FY2017-18 onwards.
2
Includes share application money pending allotment
3
Includes provision for diminution in the value of investments

243
 schedules
forming part of the financial statements Continued
3.45. Pending litigations
The Company’s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with Tax authorities. The Company
has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where
applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March
31, 2018. Refer note 3.1 for details on contingent liabilities. In respect of litigations, where the management assessment of a financial outflow is probable, the Company
has made a provision of ` 301,244 thousand at March 31, 2018 (At March 31, 2017: ` 169,015 thousand).

3.46. Long term contracts

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed
and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts including derivative
contracts has been made in the financial statements.
For insurance contracts, actuarial valuation of liabilities for policies is done by the Appointed Actuary of the Company. The methods and assumptions used in valuation
of liabilities are in accordance with the regulations issued by the Insurance Regulatory and Development Authority of India (“IRDAI”) and actuarial practice standards and
guidance notes issued by the Institute of Actuaries of India.

3.47. Corporate Social Responsibility

The amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year ended March 31, 2018 was ` 230,288
thousand (year ended March 31, 2017: ` 217,391 thousand).
The following table sets forth, for the periods indicated, the amount spent by the Company on CSR related activities. (` in ‘000)

Particulars Year ended March 31, 2018 Year ended March 31, 2017
In cash Yet to be paid in cash Total In cash Yet to be paid in cash Total
Construction/ acquisition of any asset - - - - - -
On purposes other than above 222,884 7,639 230,523 194,029 24,813 218,842
Amounts of related party transactions with ICICI Foundation for Inclusive Growth pertaining to CSR related activities for year ended March 31, 2018 was ` 172,769
thousand (year ended March 31, 2017: ` 170,263 thousand)
The following table sets forth, for the periods indicated, the details of movement of amounts yet to be paid for CSR related activities. (` in ‘000)

At March At March
Particulars
31, 2018 31, 2017
Opening balance 24,813 25,424
Expense during the year 230,523 218,842
Paid during the year (247,697) (219,453)
Closing balance 7,639 24,813

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

Pursuant to Securities and Exchange Board of India (Listing obligations and disclosure requirements) Regulations, 2015, disclosures pertaining to loans and advances
given to subsidiaries, associates and related entities are given below:
There are no loans and advances given to subsidiaries, associates and firms/companies in which directors are interested except for advances which are in the normal
course of business but not in the nature of loans (year ended March 31, 2018: ` nil)
There are no investments by the loanee in the shares of the Company.

3.49. Specified Bank Notes

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

3.50. Previous year comparatives

Previous period’s figures have been regrouped and reclassified wherever necessary to conform to current period’s presentation. The details for regrouping are as
follows:

Sr. Regrouped to Regrouped from Amount Reason

No. (` in ‘000)
1 Schedule 3 Schedule 3 394,192 The reclassification has been done for appropriate
Others- Business conferences and Agents training, recruitment and presentation.
meetings incentives

2 Schedule 3 Schedule 3 44,049

Employees’ remuneration and welfare Agents training, recruitment and
benefits incentives

As per our report of even date attached. For and on behalf of the Board of Directors

For B S R & Co. LLP For Walker Chandiok & Co LLP

Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

244
schedules
forming part of the financial statements Continued
Form AOC-I
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries
(` ‘000)

Sr. No. Particulars March 31, 2018 March 31, 2017

1 Name of the subsidiary ICICI Prudential Pension Funds Management Company Limited
2 Reporting period for the subsidiary March 31, 2018 March 31, 2017
3 Share Capital 290,000 290,000
4 Reserves & surplus (26,731) (20,125))
5 Extent of interest of ICICI Prudential Life Insurance Company Limited in capital of subsidiary 100% 100%
6 Total Assets 273,085 279,041
7 Total liabilities 9,815 9,166
8 Investments 242,545 59,737
9 Turnover 1,843 997
10 Profit before taxation (6,655) (5,873)
11 Provision for taxation (49) (181)
12 Profit after taxation (6,606) (5,692)
13 Proposed dividend Nil Nil

For and on behalf of the Board of Directors

CHANDA KOCHHAR V. SRIDAR SANDEEP BAKHSHI

Chairperson Director Managing Director and CEO
DIN:00043617 DIN: 02241339 DIN:00109206

SANDEEP BATRA SATYAN JAMBUNATHAN

Executive Director Chief Financial Officer
DIN:03620913

ASHA MURALI VYOMA MANEK

Appointed Actuary Company Secretary

Place: Mumbai
Date: April 26, 2016

245
independent auditors’ report
To the members of ICICI Prudential Life Insurance Company Limited
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the accompanying consolidated financial statements of ICICI Prudential
Life Insurance Company Limited (hereinafter referred to as “the Holding Company”)
and its subsidiary ‘ICICI Prudential Pension Funds Management Company Limited’ (the
Holding Company and its subsidiary together referred to as the “Group”), which comprise
the Consolidated Balance Sheet as at March 31, 2018, the Consolidated Revenue Account
(also called the “Policyholders’ Account” or the “Technical Account”), the Consolidated
Profit and Loss Account (also called the “Shareholders’ Account” or the “Non-Technical
Account”) and Consolidated Receipts and Payments Account for the year then ended,
including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as “the consolidated financial statements”).
MANAGEMENT’S RESPOSBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The Holding Company’s Board of Directors is responsible for the preparation of these
consolidated financial statements in terms of the requirements of the Companies Act, 2013
(hereinafter referred to as “the Act”) that give a true and fair view of the consolidated state of
affairs, consolidated net surplus, consolidated profit and the consolidated receipts and payments
of the Group in accordance with accounting principles generally accepted in India, including
the provisions of The Insurance Act, 1938 (amended by the Insurance Laws (Amendment)
Act, 2015) (the “Insurance Act”), the Insurance Regulatory and Development Authority Act,
1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the
“IRDA Financial Statements Regulations”), orders/ directions/ circulars issued by the Insurance
Regulatory and Development Authority of India (the “IRDAI”/ “Authority”) in this regard, and
the Accounting Standards specified under Section 133 of the Act, to the extent applicable.
The respective Board of Directors of the companies included in the Group are responsible
for maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Group and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the consolidated financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the consolidated financial statements by the
Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the
companies included in the Group are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate
the Group or to cease operations, or has no realistic alternative but to do so.
AUDITORS’ RESPONBILITY
Our responsibility is to express an opinion on these consolidated financial statements based
on our audit. While conducting the audit, we have taken into account the provisions of the
Act, the Insurance Act, the IRDA Act, the IRDA Financial Statements Regulations, orders/
directions/circulars issued by the IRDAI, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions of the Act and
Rules made thereunder.
We conducted our audit of consolidated financial statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on
the auditors’ judgment, including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Holding Company’s
preparation of the consolidated financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating
the overall presentation of the consolidated financial statements.
We are also responsible to conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt
on the ability of Group to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in the auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause Group and
its associates, joint ventures and joint operations to cease to continue as a going concern.
We believe that the audit evidence obtained by us and the audit evidence obtained by the
other auditors in terms of their reports referred to in subparagraph (b) of the Other Matters
paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on
the consolidated financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given
to us and based on the consideration of reports of other auditors on separate financial
statements and on the other financial information of the subsidiary, the aforesaid
consolidated financial statements give the information required by the Insurance Act, the
IRDA Act, the IRDA Financial Statements Regulations and the Act, to the extent applicable
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the consolidated state of affairs of the Group as
at March 31, 2018, their consolidated net surplus, consolidated profit and consolidated
receipts and payments for the year ended on that date.
246
OTHER MATTERS
a. The actuarial valuation of liabilities for life policies in force and policies where
premium is discontinued is the responsibility of the Holding Company’s Appointed
Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities for life
policies in force and for policies in respect of which premium has been discontinued
but liability exists as at March 31, 2018 has been duly certified by the Appointed
Actuary and in her opinion, the assumptions for such valuation are in accordance with
the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India
in concurrence with the Authority. We have relied upon the Appointed Actuary’s
certificate in this regard for forming our opinion on the valuation of liabilities for life
policies in force and for policies in respect of which premium has been discontinued
but liability exists, as contained in the consolidated financial statements of the Group.
b. We did not audit the financial statement/ financial information of a subsidiary
company, whose financial statements reflects total assets of ` 273,085 thousand as at
March 31, 2018, total revenue of ` 25,492 thousand and net cash inflow amounting to
` 373 thousand for the year ended March 31, 2018 on that date, as considered in the
consolidated financial statements. These financial statements / financial information
have been audited by other auditor, whose report have been furnished to us by the
Management and our opinion on consolidated financial statements, in so far as it
relates to the amounts and disclosures included in respect of such subsidiary and
our report in terms of Section 143(3) of the Act, insofar as it relates to the aforesaid
subsidiary, is based solely on the report of other auditor.
Our opinion above on the consolidated financial statements, and our report on Other Legal
and Regulatory Requirements below, is not modified in respect of the above matters with
respect to our reliance on the work done and the report of the other auditor.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by section 143(3) of the Act, based on our audit and on the consideration
of report of the other auditor on separate financial statement and the other financial
information of a subsidiary, as noted in the ‘Other matters’ paragraph, we report, to the
extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit of the
aforesaid consolidated financial statements and have found them to be satisfactory;
(b) In our opinion, proper books of account as required by law relating to preparation of
the aforesaid consolidated financial statements have been kept so far as it appears
from our examination of those books and the report of the other auditor;
(c) The Consolidated Balance Sheet, the Consolidated Revenue Account, the
Consolidated Profit and Loss Account and the Consolidated Receipts and Payments
Account dealt with by this Report are in agreement with the relevant books of account
for the purpose of preparation of the consolidated financial statements;
(d) In our opinion, the aforesaid consolidated financial statements comply with the comply
with the Accounting Standards specified under Section 133 of the Act to the extent not
inconsistent with the accounting principles prescribed in the IRDA Financial Statements
Regulations and orders / directions / circulars issued by IRDAI in this regard.
(e) On the basis of written representations received from the directors of the Holding
Company as on March 31, 2018 taken on record by the Board of Directors of Holding
Company and the report of the statutory auditor of its subsidiary company, none of
the directors of the Group companies is disqualified as on March 31, 2018 from being
appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Holding company and its subsidiary and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”;
(g) With respect to the other matters to be included in the Auditors’ Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the explanations given to us and based on the
consideration of the report of the other auditor on separate financial statements as also
the other financial information of a subsidiary, as noted in the “Other matter” paragraph:
i. The consolidated financial statements has disclosed the impact of pending
litigations on consolidated financial position of the Group – Refer schedule 16
note 3.22 to the consolidated financial statements;
ii. Provision has been made in the consolidated financial statements, as required
under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivatives contracts – Refer
schedule 16 note 3.23 to the consolidated financial statements;
iii. There has been no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Holding Company and its
subsidiary Company; and
iv. The disclosures in the consolidated financial statements regarding holdings as
well as dealings in specified bank notes during the period from 8 November
2016 to 30 December 2016 have not been made since they do not pertain to
the financial year ended 31 March 2018. However the Group has made requisite
disclosures in the audited consolidated financial statements for the year ended
31 March 2017.
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
annexure a to the independent auditor’s report
of even date on the consolidated financial statements of icici Prudential Life Insurance Company Limited
Independent Auditors’ report on the Internal Financial Controls under
Section 143(3)(i) of the Companies Act, 2013 (“the Act”)
To the Members of of records that, in reasonable detail, accurately and fairly reflect the transactions and
ICICI Prudential Life Insurance Company Limited dispositions of the assets of the company; (2) provide reasonable assurance that transactions
In conjunction with our audit of the consolidated financial statements of ICICI Prudential Life
Insurance Company Limited as of and for the year ended March 31, 2018, we have audited
the internal financial controls over financial reporting of ICICI Prudential Life Insurance
Company Limited (hereinafter referred to as “the Holding Company”) and its subsidiary
company ‘ICICI Prudential Pension Funds Management Company Limited’ (the Holding
Company and its subsidiary together referred to as “the Group”), which is a company
incorporated in India, as of that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The respective Board of Directors of the Holding Company and its subsidiary company,
which is a company incorporated in India, are responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting criteria
established by the respective companies considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of the company’s business, including adherence to the company’s policies, the
safeguarding of the company’s assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Act.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Holding Company’s and its subsidiary
company incorporated in India, internal financial controls over financial reporting based
on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the
Standards on Auditing, both issued by the ICAI, and under section 143(10) of the Act, to
the extent applicable to an audit of internal financial controls. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy
of the internal financial controls over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained
by the other auditor in terms of their report referred to in the Other Matter paragraph
below, is sufficient and appropriate to provide a basis for our audit opinion on the Holding
Company’s and its subsidiary company incorporated in India, internal financial controls
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company's internal financial controls over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial controls over financial
reporting includes those policies and procedures that (1) pertain to the maintenance
are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and
directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s assets
that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL
REPORTING
Because of the inherent limitations of internal financial controls over financial reporting,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over financial reporting to future periods are
subject to the risk that the internal financial controls over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
OPINION
In our opinion, the Holding Company and its subsidiary company incorporated in India,
have in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2018, based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note issued by the ICAI.
OTHER MATTERS
a. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating
effectiveness of the internal financial controls over financial reporting, insofar as it
relates to the subsidiary company, which is a company incorporated in India, is based
on the corresponding report of the auditor of such subsidiary company.
b. The actuarial valuation of liabilities for life policies in force and policies where
premium is discontinued but liability exists as at March 31, 2018 has been certified
by the Appointed Actuary as per the IRDA Financial Statement Regulations, and
has been relied upon by us, as mentioned in “Other Matters” of our audit report
on the financial statements of the Holding Company for the year ended March 31,
2018. Accordingly, we have not audited the internal financial controls over financial
reporting in respect of the valuation an accuracy of the aforesaid actuarial valuation.
Our opinion is not modified in respect of the above matters
For B S R & Co. LLP For Walker Chandiok & Co LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No: ICAI Firm Registration No:
101248W/W-100022 001076N/N500013
Venkataramanan Vishwanath per Khushroo B. Panthaky
Partner Partner
Membership No: 113156 Membership No.42423
Place: Mumbai, Place: Mumbai,
Date: April 24, 2018 Date: April 24, 2018
247
 consolidated revenue account
for the year ended March 31, 2018

FORM A-RA
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000

Policyholders’ Account (Technical Account)

(` in ‘000)
Particulars Schedule Par Life Par Non Par Non Par Non Par Annuity Health Linked Life Linked Linked Linked Linked Total
Pension Variable Variable Non Par Pension Health Group Group
Pension Life Pension
Premiums earned (Net of service tax / Goods & Service tax)
(a) Premium 1 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
(b) Reinsurance ceded (24,208) (51) (1,710,049) - - - (45,790) (486,475) (74) (314,234) (36) - (2,580,917)
(c) Reinsurance accepted - - - - - - - - - - - - -
Sub-total 31,777,996 276,354 29,261,540 352,309 9,300 3,107,546 247,678 189,525,876 5,513,007 716,461 4,666,973 2,651,735 268,106,775
Income from Investments
(a) Interest, dividend & rent - Gross 7,189,183 809,086 8,945,765 82,440 11,208 1,862,716 27,868 20,910,983 4,123,959 247,141 2,257,152 1,664,246 48,131,747
(b) Profit on sale/redemption of investments 4,073,649 611,979 1,712,448 2,131 13 47,596 43,207 47,180,542 22,804,776 978,411 1,983,320 594,747 80,032,819
(c) (Loss) on sale/redemption of investments (427,176) (2,249) (560,996) - (394) (522) - (7,663,294) (1,646,178) (87,493) (566,560) (332,079) (11,286,941)
(d) Transfer/gain on revaluation/change in fair value - - - - - - - 756,321 (8,529,603) (103,407) (1,116,515) 15,635 (8,977,569)
(e) Accretion of discount/(amortisation of premium) (Net) (96,148) 22,239 (32,002) 2,371 380 11,644 217 3,939,345 421,916 12,301 117,274 315,104 4,714,641
Sub-total 10,739,508 1,441,055 10,065,215 86,942 11,207 1,921,434 71,292 65,123,897 17,174,870 1,046,953 2,674,671 2,257,653 112,614,697
Other income
Contribution from the Shareholders' account - - - - - 752,784 - - - - - - 752,784
Income on unclaimed amount of policyholders - - - - - - - 500,740 - - - - 500,740
Fees and charges 77,847 355 103,824 - - - 70 416 - - - - 182,512
Miscellaneous income 1,973 15 1,998 6 - 180 19 11,811 344 61 281 114 16,802
Sub-total 79,820 370 105,822 6 - 752,964 89 512,967 344 61 281 114 1,452,838
Total (A) 42,597,324 1,717,779 39,432,577 439,257 20,507 5,781,944 319,059 255,162,740 22,688,221 1,763,475 7,341,925 4,909,502 382,174,310
Commission 2 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Operating expenses related to Insurance business 3 3,112,403 16,784 4,464,471 5,332 608 64,862 162,219 11,910,106 377,325 64,858 72,810 47,534 20,299,312
Provision for doubtful debts (4,136) (56) (3,884) - - (132) 44 (7,825) (752) (217) - - (16,958)
Bad debts written off 8,891 (7) 7,090 - - 125 177 31,308 202 8 9 - 47,803
Provisions (other than taxation)
(a) For diminution in the value of investments (Net)- Refer 23,865 - 27,007 - - - - - - - - - 50,872
note 3.17 of schedule 16
(b) Others - - - - - - - - - - - - -
Service tax/Goods & Service Tax charge on linked charges - - - - - - - 4,798,211 518,259 168,799 83,877 75,974 5,645,120
Total (B) 5,791,041 19,213 6,275,327 5,332 608 76,680 197,394 26,242,243 931,493 239,350 156,696 123,508 40,058,885
Benefits paid (Net) 4 6,254,660 1,321,065 2,859,951 385,564 16,900 1,591,003 24,674 105,169,157 46,520,242 396,667 4,998,409 2,720,325 172,258,617
Interim bonus paid 547,078 2,161 - - - - - - - - - - 549,239
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/mathematical reserves)(Gross) 25,849,969 70,663 49,203,820 41,830 2,270 4,114,261 158,692 55,100 (72,236) 50,801 (4,873) 512 79,470,809
(b) Amount ceded in reinsurance - - (20,958,405) - - - (273,800) - - - - - (21,232,205)
(d) Fund reserve - - - - - - - 106,625,977 (27,648,442) 729,575 2,102,039 1,949,699 83,758,848
(e) Funds for discontinued policies - - - - - - - 12,223,005 254,515 - - - 12,477,520
Total (C) 32,651,707 1,393,889 31,105,366 427,394 19,170 5,705,264 (90,434) 224,073,239 19,054,079 1,177,043 7,095,575 4,670,536 327,282,828
Surplus/(deficit) (D) =(A)-(B)-(C) 4,154,576 304,677 2,051,884 6,531 729 - 212,099 4,847,258 2,702,649 347,082 89,654 115,458 14,832,597
Provision for taxation
(a) Current tax credit/(charge)-Refer note 3.5 of schedule 16 (1,200,710) - - - - - - - - - - - (1,200,710)
(b) Deferred tax credit/(charge)-Refer note 3.5 of schedule 16 - - - - - - - (6) - - - - (6)
Surplus/(deficit) after tax 2,953,866 304,677 2,051,884 6,531 729 - 212,099 4,847,252 2,702,649 347,082 89,654 115,458 13,631,881
Appropriations
Transfer to Shareholders' account 489,779 28,884 2,051,884 6,531 729 - 212,099 4,847,290 2,702,746 347,082 89,654 115,458 10,892,136
Transfer to other Reserves - - - - - - - - - - - - -
Balance being funds for future appropriation 2,464,087 275,793 - - - - - (38) (97) - - - 2,739,745
Total 2,953,866 304,677 2,051,884 6,531 729 - 212,099 4,847,252 2,702,649 347,082 89,654 115,458 13,631,881
Details of Surplus after tax
(a) Interim bonuses paid 547,078 2,161 - - - - - - - - - - 549,239
(b) Allocation of bonus to policyholders' 3,860,936 257,795 - - - - - - - - - - 4,118,731
(c) Surplus shown in the Revenue Account 2,953,866 304,677 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 12,879,097
Total Surplus 7,361,880 564,633 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 17,547,067
Funds for future appropriation
Opening balance as at April 1, 2017 3,915,268 2,118,419 - - - - - 3,251 4,920 - - - 6,041,858
Add: Current period appropriation 2,464,087 275,793 - - - - - (38) (97) - - - 2,739,745
Balance carried forward to Balance Sheet 6,379,355 2,394,212 - - - - - 3,213 4,823 - - - 8,781,603
Significant accounting policies & notes 16
The schedules and accompanying notes referred to herein form an integral part of the Consolidated Revenue Account.

As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Consolidated Revenue
Account as expenses.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

248
consolidated revenue account
for the year ended March 31, 2017

FORM A-RA
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000

Policyholders’ Account (Technical Account)

(` in ‘000)
Particulars Schedule Par Life Par Non Par Non Par Non Par Annuity Health Linked Life Linked Linked Linked Total
Pension Variable Variable Non Par Pension Health Group
Pension
Premiums earned (Net of service tax)
(a) Premium 1 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
(b) Reinsurance ceded (16,701) (47) (1,158,189) - - - (35,294) (459,637) (83) (317,561) (32) (1,987,544)
(c) Reinsurance accepted - - - - - - - - - - - -
Sub-total 25,609,818 329,776 26,824,429 891,208 137,913 2,058,089 101,314 150,579,078 6,606,743 874,720 7,539,388 221,552,476
Income from Investments
(a) Interest, dividend & rent - Gross 5,773,911 799,264 7,460,821 39,612 6,385 1,825,435 44,227 17,345,787 4,630,897 224,585 3,778,245 41,929,169
(b) Profit on sale/redemption of investments 1,887,566 166,343 740,144 1,801 - 406,141 1,813 41,439,269 23,593,975 616,524 3,130,259 71,983,835
(c) (Loss) on sale/redemption of investments (87,526) (14,080) (26,708) (131) - (8,306) - (7,203,558) (2,271,478) (50,164) (796,182) (10,458,133)
(d) Transfer/gain on revaluation/change in fair value - - - - - - - 35,476,906 3,563,819 573,404 965,284 40,579,413
(e) Accretion of discount/(amortisation of premium) (Net) 31,101 37,212 (35,482) 1,249 811 (2,263) 562 4,457,152 576,893 15,112 652,823 5,735,170
Sub-total 7,605,052 988,739 8,138,775 42,531 7,196 2,221,007 46,602 91,515,556 30,094,106 1,379,461 7,730,429 149,769,454
Other income
Contribution from the Shareholders' account - - - 16,204 1,815 - - - - - - 18,019
Income on unclaimed amount of policyholders - - - - - - - 403,684 - - - 403,684
Fees and charges 71,575 608 96,548 - - - 129 353 - - - 169,213
Miscellaneous income 3,186 21 2,905 2 - 36 10 10,728 465 39 166 17,558
Sub-total 74,761 629 99,453 16,206 1,815 36 139 414,765 465 39 166 608,474
Total(A) 33,289,631 1,319,144 35,062,657 949,945 146,924 4,279,132 148,055 242,509,399 36,701,314 2,254,220 15,269,983 371,930,404
Commission 2 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Operating expenses related to Insurance business 3 3,760,917 21,109 4,082,671 16,232 1,924 41,186 12,382 14,850,268 541,266 74,425 169,581 23,571,961
Provision for doubtful debts (9,331) (34) (15,982) (75) - 12 (41) (29,406) (323) (125) (100) (55,405)
Bad debts written off 22,019 187 26,268 - - 171 225 62,992 3,518 703 1 116,084
Provisions (other than taxation)
(a) For diminution in the value of investments (Net) - Refer 33,361 - 31,764 - - - - - - - - 65,125
note 3.17 of schedule 16
(b) Others - - - - - - - - - - - -
Service tax charge on linked charges - - - - - - - 3,390,007 497,356 145,390 129,909 4,162,662
Total(B) 5,717,270 22,925 5,529,097 16,182 1,924 43,002 15,965 22,489,656 1,086,668 227,507 299,391 35,449,587
Benefits paid (Net) 4 4,942,515 869,817 1,992,768 10,158 8,157 1,470,677 27,957 86,684,624 42,727,402 377,289 10,532,722 149,644,086
Interim bonus paid 330,901 3,763 - - - - - - - - - 334,664
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/mathematical reserves) (Gross) 20,179,513 42,196 48,659,800 923,605 136,843 1,704,143 (32,576) 1,053,994 (109,534) 52,992 (17,256) 72,593,720
(b) Amount ceded in reinsurance - - (23,446,270) - - - - - - - - (23,446,270)
(c) Amount accepted in reinsurance - - - - - - - - - - - -
(d) Fund reserve - - - - - - - 124,354,140 (10,374,995) 1,220,604 4,262,086 119,461,835
(e) Funds for discontinued policies - - - - - - - 5,905,839 460,426 - - 6,366,265
Total(C) 25,452,929 915,776 27,206,298 933,763 145,000 3,174,820 (4,619) 217,998,597 32,703,299 1,650,885 14,777,552 324,954,300
Surplus/(deficit)(D) =(A)-(B)-(C) 2,119,432 380,443 2,327,262 - - 1,061,310 136,709 2,021,146 2,911,347 375,828 193,040 11,526,517
Provision for taxation
(a) Current tax credit/(charge) - Refer note 3.5 of schedule 16 (788,117) - - - - - - - - - - (788,117)
(b) Deferred tax credit/(charge) - Refer note 3.5 of schedule 16 - - - - - - - (233) - - - (233)
Surplus/(deficit) after tax 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Appropriations
Transfer to Shareholders' account 394,734 32,836 4,124,399 - - 1,061,310 136,709 2,022,530 2,920,712 429,172 193,040 11,315,442
Transfer to other Reserves - - - - - - - - - - - -
Balance being funds for future appropriation 936,581 347,607 (1,797,137) - - - - (1,617) (9,365) (53,344) - (577,275)
Total 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Details of Surplus after tax
(a) Interim bonuses paid 330,901 3,763 - - - - - - - - - 334,664
(b) Allocation of bonus to policyholders' 3,221,705 291,759 - - - - - - - - - 3,513,464
(c) Surplus shown in the Revenue Account 1,331,315 380,443 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 10,738,167
Total Surplus 4,883,921 675,965 2,327,262 - - 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 14,586,295
Funds for future appropriation
Opening balance as at April 1, 2016 2,978,687 1,770,812 1,797,137 - - - - 4,868 14,285 53,344 - 6,619,133
Add: Current period appropriation 936,581 347,607 (1,797,137) - - - - (1,617) (9,365) (53,344) - (577,275)
Balance carried forward to Balance Sheet 3,915,268 2,118,419 - - - - - 3,251 4,920 - - 6,041,858
Significant accounting policies & notes 16
The schedules and accompanying notes referred to herein form an integral part of the Consolidated Revenue Account.

As required by Section 40-B(4) of the Insurance Act, 1938 we certify that all expenses of Management in respect of life insurance business in India incurred by the Company have been fully debited to the Consolidated Revenue
Account as expenses.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

249
consolidated profit & loss account consolidated balance sheet
for the year ended March 31, 2018 as at March 31, 2018
Form A-PL Form A-BS
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Regn.No. 105 dated 24.11.2000

Shareholders’ Account (Non-Technical Account) (` in ‘000) (` in ‘000)

Particulars Schedule March 31, March 31, Particulars Schedule March 31, March 31,
2018 2017 2018 2017
Amounts transferred from Policyholders' 10,892,136 11,315,442 Sources of funds
account (Technical account) Shareholders' funds :
Share capital 5 14,354,987 14,353,471
Income from investments
Share application money - -
(a) Interest, dividend & rent - Gross 4,216,170 3,763,147 Reserve and surplus 6 51,381,912 46,975,971
(b) Profit on sale/redemption of investments 3,347,767 2,881,450 Credit/[debit] fair value change account 3,080,906 2,730,821
(c) (Loss) on sale/redemption of (125,521) (114,046) Deferred Tax Liability- Refer note 3.5 of - 49
investments schedule 16
Sub - total 68,817,805 64,060,312
(d) Accretion of discount/(amortisation of (19,327) 139,232 Borrowings 7 - -
premium) (Net) Policyholders' funds :
Other income 50,286 286,303 Credit/[debit] fair value change account 20,550,637 17,866,609
Total (A) 18,361,511 18,271,528 Revaluation reserve - Investment property- 614,479 603,548
Refer note 3.16 of schedule 16
Expenses other than those directly related 3A 419,756 409,280
Policy liabilities (A)+(B)+(C) 1,284,945,569 1,130,470,597
to the insurance business Non unit liabilities (mathematical reserves) (A) 309,933,921 251,695,317
Bad debts written-off - - Provision for linked liabilities (fund 923,123,553 839,364,705
Provisions (other than taxation) reserves) (B)
(a) Provision for linked liabilities 822,372,860 729,695,155
(a) For diminution in value of investments - -
(b) Credit/[debit] fair value change account 100,750,693 109,669,550
(Net)- Refer note 3.17 of schedule 16
(Linked)
(b) Provision for doubtful debts - - Funds for discontinued policies (C) 51,888,095 39,410,575
Contribution to Policyholders' account 752,784 18,019 (a) Discontinued on account of non- 51,841,156 39,373,557
(Technical account)   payment of premium
Total (B) 1,172,540 427,299 (b) Other discontinuance 117,925 49,293
(c) Credit/[debit] fair value change account (70,986) (12,275)
Profit before tax 17,188,971 17,844,229 Total linked liabilities (B)+(C) 975,011,648 878,775,280
Provision for taxation Sub - total 1,306,110,685 1,148,940,754
(a) Current tax credit/(charge) - Refer note (997,367) (1,027,714) Funds for Future Appropriations
3.5 of schedule 16 Linked 8,036 8,171
Non linked 8,773,567 6,033,687
(b) Deferred tax credit/(charge) - Refer note 49 97 Sub - total 8,781,603 6,041,858
3.5 of schedule 16 Total 1,383,710,093 1,219,042,924
Profit after tax 16,191,653 16,816,612 Application of funds
Investments
Appropriations
Shareholders’ 8 77,465,940 66,349,201
(a) Balance at the beginning of the year 12,662,916 2,493,309 Policyholders’ 8A 332,888,519 270,673,678
(b) Interim dividends paid during the year - 4,880,653 5,521,572 Asset held to cover linked liabilities 8B 975,019,684 878,783,451
Refer note 3.21 of schedule 16 Loans 9 1,450,588 806,448
Fixed assets - net block 10 4,220,622 2,137,975
(c) Final dividend - Refer note 3.21 of 5,023,962 1,142
Deferred tax asset - Refer note 3.5 of 463 469
schedule 16
schedule 16
(d) Dividend distribution tax - Refer note 2,016,339 1,124,291 Current assets
3.21 of schedule 16 Cash and Bank balances 11 2,038,132 2,137,280
Profit carried to Balance Sheet 16,933,615 12,662,916 Advances and Other assets 12 25,104,728 26,519,717
Sub-Total (A) 27,142,860 28,656,997
Earnings per equity share - Refer note 3.13
Current liabilities 13 34,256,739 28,160,335
of schedule 16 Provisions 14 221,844 204,960
Basic earnings per equity share ` 11.28 11.72 Sub-Total (B) 34,478,583 28,365,295
Diluted earnings per equity share ` 11.28 11.72 Net Current Assets (C) = (A-B) (7,335,723) 291,702
Miscellaneous expenditure (to the extent 15 -
Nominal value per equity share ` 10.00 10.00
not written-off or adjusted)
Significant accounting policies & notes 16 Debit Balance in Profit & Loss Account -
(Shareholders' account)
The Schedules and accompanying notes referred to herein form an integral part of Total 1,383,710,093 1,219,042,924
the Consolidated Profit and Loss Account. Contingent liabilities - Refer note 3.1 of 2,031,184 2,072,659
schedule 16
Significant accounting policies & notes 16
The Schedules and accompanying notes referred to herein form an integral part of
the Consolidated Balance Sheet.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

250
consolidated receipts & payments account
for the year ended March 31, 2018

(` in ‘000)
Particulars April 1, 2017 to March 31, 2018 April 1, 2016 to March 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers:
Premium and other receipts 300,622,832 254,553,454
Interest received on tax refund 472,382 7
Cash paid towards operating activities:
Commission paid (13,411,464) (7,646,310)
Policy benefits paid (172,201,685) (149,235,790)
Other expenses4 (49,576,699) (47,918,591)
Service tax/Goods and Service tax paid (7,042,688) (5,172,072)
Reinsurance premium ceded (net of recovery amount) (180,822) (346,370)
Advances and deposits (85,102) 12,059
Taxes paid (net of refunds) (1,697,876) (244,196,336) (2,949,392) (213,256,466)
Net cash generated from operating activities (A) 56,898,878 41,296,995
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (698,378) (536,049)
Sale of fixed assets 22,466 (675,912) 22,674 (513,375)
Purchase of investments (1,883,397,482) (1,497,762,210)
Loan (644,140) (363,730)
Sale of investments 1,817,267,806 1,413,507,610
Advance/deposit for investment property - 64,338
Interest & rent received (net of tax deducted at source) 42,150,445 36,521,944
Dividend received 8,444,427 7,259,761
Investments in money market instruments and in liquid mutual funds (Net) (36,804,639) 34,524,975
Expense related to investment (228,131) (201,816)
Net cash generated from/(used) investing activities (B) (53,887,626) (6,962,503)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital1 39,580 327,337
Final Dividend (5,019,892) (3,008,328)
Interim Dividend paid (4,880,653) (5,521,572)
Dividend Distribution tax paid (2,016,339) (1,736,625)
Net cash used in financing activities (C) (11,877,304) (9,939,188)
Effect of foreign exchange rates on cash and cash equivalents (net) (D) 30 (678)
Net increase in cash and cash equivalents (A+B+C+D) (8,866,022) 24,394,626
Cash and cash equivalents at beginning of the year 65,337,228 40,942,602
Cash and cash equivalents at end of the year 56,471,206 65,337,228
Note:
Cash and cash equivalents at the end of the year
- Cash (Including cheques in hand and stamps in hand) 1,345,557 1,408,060
- Bank Balances and Money at call and short notice2 946,271 1,137,407
[Including bank balance for linked business of
` 253,696 thousands ( ` 408,187 thousands at March 31, 2017)]
- Other short term liquid investment3 55,463,985 65,777,884
[Forming part of investments in financials and unclaimed assets as disclosed in
Schedule 12 ]
- Banks having negative book balance (1,155,306) (2,958,301)
[Forming part of Other Liabilities under Schedule 13 in financials]
Stamps on Hand (129,301) (27,822)
[Part of Cash (including cheques, drafts and stamps) under Schedule 11,
however not a part of cash and cash equivalents]
56,471,206 65,337,228
1
Includes movement in share application money.
2
Includes balance in dividend account which is unclaimed amounting to ` 4,768 thousands (` 697 thousands at March 31, 2017).
3
Includes a fixed deposit amounting to ` Nil (` 575,679 thousands at March 31, 2017) given as a lien against guarantee to NSE and which is having a maturity of less than 3 months.
4
Includes CSR paid during the year amounting to ` 247,697 thousands (` 219,453 thousands for the year ended March 31, 2018) - Refer note 3.24 of Schedule 16.
The above Consolidated Receipts and payments account has been prepared as prescribed by Insurance Regulatory and Development Authority (Preparation of financial statements and
auditor’s report of insurance companies) Regulations, 2002 under the “Direct method” in accordance with Accounting Standard 3 Cash Flow Statements.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary
251
 schedules
forming part of the consolidated financial statements Continued
SCHEDULE – 1
PREMIUM (Net of service tax / Goods & Service tax)
For the year ended March 31, 2018 (` in ‘000)
Particulars Par Life Par Pension Non Par Non Par Non Par Annuity Health Linked Life Linked Linked Linked Linked Total
Variable Variable Non Par Pension Health Group Group
Pension Life Pension
First year premiums 7,972,764 - 2,542,456 - - - 174,425 62,490,545 382,145 (429) - - 73,561,906
Renewal premiums 23,829,440 276,405 20,805,081 - - - 117,428 124,118,936 4,897,657 1,031,124 2,388,567 1,105,543 178,570,181
Single premiums - - 7,624,052 352,309 9,300 3,107,546 1,615 3,402,870 233,279 - 2,278,442 1,546,192 18,555,605
Total Premium 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
Premium Income from
business written:
In India 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692
Outside India - - - - - - - - - - - - -
Total Premium 31,802,204 276,405 30,971,589 352,309 9,300 3,107,546 293,468 190,012,351 5,513,081 1,030,695 4,667,009 2,651,735 270,687,692

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Pension Non Par Non Par Non Par Annuity Health Linked Life Linked Linked Linked Total
Variable Variable Non Par Pension Health Group
Pension
First year premiums 6,186,130 4 2,432,625 - -- (19) 54,463,295 364,781 (532) - 63,446,284
Renewal premiums 19,440,389 329,819 20,845,844 - -- 136,627 94,351,150 5,969,601 1,192,813 2,640,759 144,907,002
Single premiums - - 4,704,149 891,208 137,913
2,058,089 - 2,224,270 272,444 - 4,898,661 15,186,734
Total Premium 25,626,519 329,823 27,982,618 891,208 137,913
2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Premium Income from
business written:
In India 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Outside India - - - - - - - - - - - -
Total Premium 25,626,519 329,823 27,982,618 891,208 137,913 2,058,089 136,608 151,038,715 6,606,826 1,192,281 7,539,420 223,540,020
Note: Refer note 2.3.1 of schedule 16 for accounting policy on Premium recognition.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from
FY2017-18 onwards.

SCHEDULE – 2
COMMISSION EXPENSES
For the year ended March 31, 2018 (` in ‘000)
Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Commission
Direct – First year premiums 1,751,822 - 691,912 - - - 32,086 7,763,126 5,868 (95) - - 10,244,719
– Renewal premiums 898,196 2,492 793,280 - - - 2,863 1,707,876 29,870 5,997 - - 3,440,574
– Single premiums - - 295,451 - - 11,825 5 39,441 721 - - - 347,443
Total 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Add: Commission on - - - - - - - - - - - - -
re-insurance accepted
Less: Commission on - - - - - - - - - - - - -
re-insurance ceded
Net Commission 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736
Break-up of the commission
by distribution network
Individual agents 971,591 2,261 569,990 - - 2,528 19,021 1,599,776 24,252 5,762 - - 3,195,181
Corporate agents 1,285,212 231 990,401 - - 9,293 15,082 7,905,293 9,175 (46) - - 10,214,641
Brokers 391,318 - 210,788 - - - 707 5,191 3,032 186 - - 611,222
Insurance Marketing Firm 1,897 - 609 - - 4 41 183 - - - - 2,734
Web Aggregators - - 8,855 - - - 103 - - - - - 8,958
Total Commission 2,650,018 2,492 1,780,643 - - 11,825 34,954 9,510,443 36,459 5,902 - - 14,032,736

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group
Pension
Commission
Direct – First year premiums 1,174,597 - 545,455 - - - (8) 2,875,099 5,861 (124) - 4,600,880
– Renewal premiums 735,707 1,663 800,389 - - - 3,407 1,316,590 38,236 7,238 - 2,903,230
– Single premiums - - 58,532 25 - 1,633 - 24,106 754 - - 85,050
Total 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Add: Commission on - - - - - - - - - - - -
re-insurance accepted
Less: Commission on - - - - - - - - - - - -
re-insurance ceded
Net Commission 1,910,304 1,663 1,404,376 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,160
Break-up of the commission
by distribution network
Individual agents 726,303 1,158 478,050 - - 961 2,249 859,982 26,181 6,231 - 2,101,115
Corporate agents 889,392 492 760,007 - - 666 1,024 3,335,824 13,792 566 - 5,001,763
Brokers 293,745 13 166,103 25 - 6 126 19,950 4,878 317 - 485,163
Insurance Marketing Firm 863 - 151 - - - - 39 - - - 1,053
Web Aggregators 1 - 64 - - - - - - - - 65
Total Commission 1,910,304 1,663 1,404,375 25 - 1,633 3,399 4,215,795 44,851 7,114 - 7,589,159
Note: Refer Schedule 16 Note 2.4 for accounting policy on Acquisition cost.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from
FY2017-18 onwards.

252
schedules
forming part of the consolidated financial statements Continued
SCHEDULE – 3
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
For the year ended March 31, 2018 (` in ‘000)
Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Employees’ remuneration and welfare benefits 1,466,206 7,152 1,225,335 3,091 94 29,371 66,729 6,528,150 215,930 30,904 47,798 32,271 9,653,031
Travel, conveyance and vehicle running expenses 71,730 229 60,245 363 9 2,674 3,361 462,278 13,905 1,857 5,784 3,603 626,038
Agents training, recruitment and incentives 107,647 (838) 90,497 - - 366 726 267,269 7,073 720 2 1 473,463
Rents, rates and taxes 91,508 1,735 533,648 90 2 2,697 15,553 561,844 12,851 1,786 1,373 888 1,223,975
Repairs 49,192 2,432 33,336 48 1 1,423 2,516 227,908 7,262 1,032 696 444 326,290
Printing and stationery 12,245 125 17,271 3 - 463 2,281 29,348 2,043 481 103 125 64,488
Communication expenses 160,660 1,932 226,269 37 - 5,942 22,173 445,000 32,710 7,594 535 334 903,186
Legal and professional charges 117,298 1,151 133,558 456 59 3,925 9,576 365,299 19,867 4,044 4,153 1,882 661,268
Medical fees 3,175 - 200,705 7 - - 21 7,347 16 - 165 94 211,530
Auditors' fees, expenses etc :
(a) as auditor 3,224 46 4,067 - - 125 457 7,435 733 176 - - 16,263
(b) as advisor or in any other capacity, in respect of - -
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management Services; and - - - - - - - - - - - - -
(c) in any other capacity (for Certification) - - - - - - - - - - - - -
Advertisement and publicity 484,248 7 1,429,250 - 16 3,886 1,973 589,912 8,504 722 2,467 1,901 2,522,886
Interest and bank charges 25,188 282 25,652 244 9 3,019 282 132,984 5,478 275 4,563 1,863 199,839
Others - -
Administration support expenses - - - - - - - - - - - - -
Business conferences and meetings 240,866 862 124,698 37 1 892 4,457 1,109,343 14,923 1,749 443 213 1,498,484
Information technology cost 133,035 729 165,583 37 - 4,508 21,771 458,678 13,412 2,785 534 230 801,302
Office running expenses 31,661 137 29,604 36 1 1,134 2,465 177,521 6,142 890 529 340 250,460
Data entry related expenses 39,730 726 49,140 135 4 1,694 4,015 89,759 11,401 2,770 2,538 1,760 203,672
Miscellaneous expenses 17,101 (198) 25,934 17 1 562 959 92,241 (704) 2,269 48 (479) 137,751
Depreciation 50,378 180 30,448 65 1 2,084 2,052 343,759 5,287 739 1,081 686 436,760
Service tax/Goods & Service tax expenses 7,311 95 59,231 666 410 97 852 14,031 492 4,065 (2) 1,378 88,626
Total 3,112,403 16,784 4,464,471 5,332 608 64,862 162,219 11,910,106 377,325 64,858 72,810 47,534 20,299,312

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Pension Variable Variable Non Par Life Pension Health Group
Pension
Employees’ remuneration and welfare benefits 1,420,384 9,580 1,138,047 7,445 951 15,221 5,313 5,111,449 256,786 29,253 85,794 8,080,223
Travel, conveyance and vehicle running expenses 49,205 212 43,077 1,232 131 888 264 315,857 13,426 1,495 9,884 435,671
Agents training, recruitment and incentives 319,460 - 170,297 7 - 382 120 784,617 16,655 1,434 1 1,292,973
Rents, rates and taxes 94,329 1,790 391,180 263 38 1,335 363 514,496 17,448 1,973 4,927 1,028,142
Repairs 52,481 3,659 32,724 145 15 675 219 215,279 10,096 1,177 1,479 317,949
Printing and stationery 8,334 113 11,537 - 1 221 112 21,909 2,132 414 95 44,868
Communication expenses 137,562 2,228 176,317 102 13 3,293 2,218 405,695 44,368 8,378 1,280 781,454
Legal and professional charges 80,131 778 93,603 179 18 1,921 652 233,083 16,957 2,775 6,454 436,551
Medical fees 5,089 - 138,739 21 3 - - 11,320 15 (28) 184 155,343
Auditors' fees, expenses etc :
(a) as auditor 3,154 51 3,979 - - 83 50 7,632 946 185 - 16,080
(b) as advisor or in any other capacity, in respect of -
(i) Taxation matters - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - -
(iii) Management Services; and - - - - - - - - - - - -
(c) in any other capacity (for Certification) - - - - - - - - - - - -
Advertisement and publicity 412,741 6 650,617 4,898 523 972 352 802,462 47,416 4,135 30,807 1,954,929
Interest and bank charges 19,197 292 22,896 609 88 1,619 107 92,377 7,499 254 6,680 151,618
Others
Administration support expenses 590,681 - 694,478 - - 8,089 - 4,503,427 36,000 - (655) 5,832,020
Business conferences and meetings 288,878 - 161,008 186 26 354 106 735,075 14,907 1,273 2,603 1,204,416
Information technology cost 121,667 1,139 189,372 217 28 3,494 1,132 308,551 21,959 4,162 1,949 653,670
Office running expenses 28,434 156 27,891 105 13 540 183 162,624 8,161 968 1,051 230,126
Data entry related expenses 32,977 692 37,136 369 41 815 687 77,322 12,751 2,527 4,210 169,527
Miscellaneous expenses 14,340 60 32,727 34 6 250 277 94,852 6,158 2,158 2,140 153,002
Depreciation 72,492 306 47,235 258 29 1,238 283 443,552 8,573 1,057 3,141 578,164
Service tax expenses 9,381 47 19,811 162 - (204) (56) 8,689 (987) 10,835 7,557 55,235
Total 3,760,917 21,109 4,082,671 16,232 1,924 41,186 12,382 14,850,268 541,266 74,425 169,581 23,571,961
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

SCHEDULE – 3A
EXPENSES OTHER THAN THOSE DIRECTLY RELATED TO THE INSURANCE BUSINESS
For the year ended March 31, 2018 (` in ‘000)
Particulars March 31, 2018 March 31, 2017
Employees’ remuneration and welfare benefits 123,910 126,958
Travel, conveyance and vehicle running expenses 394 223
Rent, rates and taxes 19,007 23,822
Printing and stationery 38 -
Communication expenses 355 1,899
Legal and professional charges 7,293 9,316
Interest and bank charges 1,655 965
CSR expenses 230,523 218,842
Information technology cost 1,738 1,205
Others 34,560 25,555
Depreciation 283 495
Total 419,756 409,280

253
 schedules
forming part of the consolidated financial statements Continued
SCHEDULE – 4
BENEFITS PAID [NET]

For the year ended March 31, 2018 (` in ‘000)

Particulars Par Par Non Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Life Pension Par Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
1 Insurance claims
(a) Claims by death 690,246 11,534 3,879,208 739 - 68,525 - 3,266,635 621,218 14,020 53,646 35,374 8,641,145
(b) Claims by maturity 2,098,637 577,046 121,643 - - - - 23,508,518 7,278,530 - - - 33,584,374
(c) Annuities/Pension payment - - - - - 1,522,440 - - - - - - 1,522,440
(d) Other benefits
- Surrender/Withdrawal 1,374,708 730,852 604,505 384,825 16,900 - - 78,245,965 38,619,004 - 4,944,763 2,684,951 127,606,473
- Survival 2,099,481 - - - - - - - - - - - 2,099,481
- Rider 23,285 1,633 66,449 - - 38 - 28,925 1,490 37 - - 121,857
- Health - - 110,619 - - - 52,661 - - 686,843 - - 850,123
- Interest on unclaimed amounts - - - - - - - 482,269 - - - - 482,269
Sub Total (A) 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162
2 (Amount ceded in reinsurance)
(a) Claims by death (31,697) - (1,893,248) - - - - (363,155) - - - - (2,288,100)
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - (29,225) - - - (27,987) - - (304,233) - - (361,445)
Sub Total (B) (31,697) - (1,922,473) - - - (27,987) (363,155) - (304,233) - - (2,649,545)
3 Amount accepted in reinsurance
(a) Claims by death - - - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - - - - -
- Surrender - - - - - - - - - - - - -
- Survival - - - - - - - - - - - - -
- Rider - - - - - - - - - - - - -
- Health - - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - - -
Total (A) + (B) + (C) 6,254,660 1,321,065 2,859,951 385,564 16,900 1,591,003 24,674 105,169,157 46,520,242 396,667 4,998,409 2,720,325 172,258,617
Benefits paid to claimants:
In India 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162
Outside India - - - - - - - - - - - - -
Total 6,286,357 1,321,065 4,782,424 385,564 16,900 1,591,003 52,661 105,532,312 46,520,242 700,900 4,998,409 2,720,325 174,908,162
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group
Pension from FY2017-18 onwards.

For the year ended March 31, 2017 (` in ‘000)

Particulars Par Par Non Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Life Pension Par Variable Variable Non Par Life Pension Health Group
Pension
1 Insurance claims
(a) Claims by death 510,951 20,147 2,329,853 - - 80,794 - 2,281,302 630,022 9,724 49,756 5,912,549
(b) Claims by maturity 1,303,730 253,554 233,272 - - - - 18,630,325 2,409,108 - - 22,829,989
(c) Annuities/Pension payment - - - - - 1,389,762 - - - - - 1,389,762
(d) Other benefits
- Surrender/Withdrawal 1,105,200 594,979 389,773 10,158 8,157 97 - 65,663,047 39,686,369 - 10,482,966 117,940,746
- Survival 2,008,886 - 16 - - - - - - - - 2,008,902
- Rider 25,170 1,137 48,025 - - 24 - 31,846 1,903 14 - 108,119
- Health - - 37,400 - - - 53,202 - - 680,015 - 770,617
- Interest on unclaimed amounts - - - - - - - 390,569 - - - 390,569
Sub Total (A) 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
2 (Amount ceded in reinsurance)
(a) Claims by death (11,422) - (1,044,508) - - - - (312,465) - - - (1,368,395)
(b) Claims by maturity - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - -
(d) Other benefits
- Surrender/Withdrawal - - - - - - - - - - - -
- Survival - - - - - - - - - - - -
- Rider - - - - - - - - - - - -
- Health - - (1,063) - - - (25,245) - - (312,464) - (338,772)
Sub Total (B) (11,422) - (1,045,571) - - - (25,245) (312,465) - (312,464) - (1,707,167)
3 Amount accepted in reinsurance
(a) Claims by death - - - - - - - - - - -
(b) Claims by maturity - - - - - - - - - - - -
(c) Annuities/Pension payment - - - - - - - - - - - -
(d) Other benefits - - - - - - - - - -
- Surrender - - - - - - - - - - - -
- Survival - - - - - - - - - - - -
- Rider - - - - - - - - - - - -
- Health - - - - - - - - - - - -
Sub Total (C) - - - - - - - - - - - -
Total (A) + (B) + (C) 4,942,515 869,817 1,992,768 10,158 8,157 1,470,677 27,957 86,684,624 42,727,402 377,289 10,532,722 149,644,086
Benefits paid to claimants:
In India 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
Outside India - - - - - - - - - - - -
Total 4,953,937 869,817 3,038,339 10,158 8,157 1,470,677 53,202 86,997,089 42,727,402 689,753 10,532,722 151,351,253
Note: Refer note 2.8 of schedule 16 for accounting policy on Benefits paid.
As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from
FY2017-18 onwards.

254
schedules
forming part of the consolidated financial statements Continued
SCHEDULE – 5 (` in ‘000)
SHARE CAPITAL Particulars March March
(` in ‘000) 31, 2018 31, 2017
Particulars March March (Market value at March 31, 2017: `643,000 thousands)
Property 3,866,000 4,472,454
31, 2018 31, 2017
(Historical value at March 31, 2018: `3,651,011 thousands)
Authorised capital
(Historical value at March 31, 2017: `4,354,643 thousands)
1,500,000,000 Equity shares of ` 10/- each 15,000,000 15,000,000
Investments in infrastructure/housing sector
Issued, subscribed and called-up capital Other approved Investments
1,435,498,710 Equity shares of ` 10/- each fully paid up Debentures/Bonds 13,553,834 13,176,939
(March 31, 2017: 1,435,347,110 Equity shares) 14,354,987 14,353,471 (Market value at March 31, 2018: `13,932,133 thousands)
Total 14,354,987 14,353,471 (Market value at March 31, 2017: `13,729,968 thousands)
Out of the total equity share capital, 787,816,604 equity shares (March 31, 2017 - 787,816,604 Equity shares 1,485,817 1,696,513
equity shares) of ` 10 each are held by the holding company, ICICI Bank Limited. (Historical value at March 31, 2018: `1,289,606 thousands)
(Historical value at March 31, 2017: `1,353,475 thousands)
Other investments
Equity shares 262,367 214,761
SCHEDULE – 5A
(Historical value at March 31, 2018: `354,086 thousands)
PATTERN OF SHAREHOLDING (Historical value at March 31, 2017: `275,403 thousands)
[As certified by the Management] Other investments
Debentures/Bonds 461,969 833,095
Shareholder   March 31, 2018    March 31, 2017 (Market value at March 31, 2018: `487,216 thousands)
Number of % of Number of % of (Market value at March 31, 2017: `890,439 thousands)
shares holding shares holding Equity shares 7,228,448 3,687,372
Promoters (Historical value at March 31, 2018: `5,110,883 thousands)
Indian (ICICI Bank Limited) 787,816,604 54.88 787,816,604 54.89 (Historical value at March 31, 2017: `3,469,818 thousands)
Foreign Preference shares 350,000 -
(Prudential Corporation (Market value at March 31, 2018: `350,000 thousands)
Holdings Limited) 370,784,884 25.83 370,784,884 25.83 (Market value at March 31, 2017: `Nil)
Others 276,897,222 19.29 276,745,622 19.28 SHORT TERM INVESTMENT
Total 1,435,498,710 100.00 1,435,347,110 100.00
Government securities 2,873 -
(Market value at March 31, 2018: `2,904 thousands)
(Market value at March 31, 2017: `Nil)
SCHEDULE 6 Other approved securities - -
RESERVES AND SURPLUS (Market value at March 31, 2018: `Nil)
(Market value at March 31, 2017: `Nil)
(` in ‘000) Other approved investments
Particulars March March Debentures/Bonds 550,378 299,824
31, 2018 31, 2017 (Market value at March 31, 2018: `553,304 thousands)
Capital reserves - - (Market value at March 31, 2017: `301,996 thousands)
Capital redemption reserve - - Fixed deposits2,3 1,684,679 2,092,513
Share premium 34,233,308 34,195,244 (Market value at March 31, 2018: `1,684,679 thousands)
Revaluation reserve 214,989 117,811 (Market value at March 31, 2017: `2,092,513 thousands)
Mutual fund 2,650,677 4,460,521
General reserve (Historical value at March 31, 2018: `2,647,757 thousands)
Opening balance - - (Historical value at March 31, 2017: `4,460,521 thousands)
Less: Transfer to Profit and Loss - - Collateralized borrowing and lending obligation 2,018,101 -
Closing balance - - (Market value at March 31, 2018: `2,018,101 thousands)
Less: Debit balance in Profit and Loss Account - - (Market value at March 31, 2017: `Nil)
Less: Amount utilized for buy-back - - Investments in infrastructure/housing sector
Catastrophe reserve - - Other approved Investments
Other reserves - - Debentures/Bonds 2,954,239 2,435,028
Balance of profit in Profit and Loss Account 16,933,615 12,662,916 (Market value at March 31, 2018: `2,953,606 thousands)
Total 51,381,912 46,975,971 (Market value at March 31, 2017: `2,460,641 thousands)
Commercial papers 486,028 -
(Market value at March 31, 2018: `486,028 thousands)
SCHEDULE 7 (Market value at March 31, 2017: `Nil)
BORROWINGS Mutual fund investment of subsidiaries 42,545 9,737
(Market value at March 31, 2018: `42,690 thousands)
(` in ‘000) (Market value at March 31, 2017: `9,929 thousands)
Particulars March March Total 77,465,940 66,349,201
31, 2018 31, 2017 In India 77,465,940 66,349,201
Debentures/Bonds - - Total 77,465,940 66,349,201
Banks - -
Financial Institutions - - 1. Government securities of `1,638,370 thousands with Market value of `1,643,650 thousands at March 31,
2018 [At March 31, 2017: `1,450,956 thousands with Market value of `1,521,000 thousand] and `77,501
Others - -
thousands with Market value of `79,200 thousands at March 31, 2018 [At March 31, 2017: `77,354
Total - - thousands with Market value of `80,880 thousands] has been deposited with Clearing Corporation of
India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit and CCIL default fund respectively - Refer
SCHEDULE - 8 3.18 of Schedule 16.
INVESTMENTS- SHAREHOLDERS 2. Includes Fixed deposit of `1,000,000 thousands at March 31, 2018 [At March 31, 2017: `1,000,000
(` in ‘000) thousands] and `100,000 thousands at March 31, 2018 [At March 31,2017: `100,000 thousands]
deposited with National Securities Clearing Corporation Limited and Indian Clearing Corporation Limited
Particulars March March respectively towards margin requirement for equity trade settlement - Refer 3.18 of Schedule 16.
31, 2018 31, 2017 3. Includes Fixed deposit of of `5,500 thousands [at March 31, 2017: `4,500 thousands]. Of this, `1,000
LONG TERM INVESTMENT thousands [at March 31, 2017: `1,000 thousands] pertains to a deposit made with State Bank of India
Government securities1 21,263,780 13,561,317 (Originally with State Bank of Travancore) and `2,000 thousands [at March 31, 2017: `1,000 thousands]
(Market value at March 31, 2018: `21,321,296 thousands) pertains to a deposit made with Corporation bank as a security towards guarantee issued by the bank
(Market value at March 31, 2017: `14,234,582 thousands) on behalf of the Company in favour of PFRDA. Balance of `2,500 thousands [at March 31, 2017: `2,500
thousands] pertains to a deposit made with Corporation Bank towards margin requirement for equity
Other approved securities 6,601,212 8,340,862 trade settlement pertaining to Scheme E Tier I and II of ICICI Prudential Pension Funds Management
(Market value at March 31, 2018: `6,608,289 thousands) Company Limited issued in favour of National Securities Clearing Corporation Limited.
(Market value at March 31, 2017: `8,463,016 thousands) 4. Aggregate amount of Company’s investments and the market value thereof:
Other approved investments (` in ‘000)
Equity shares 6,828,688 6,701,072
(Historical value at March 31, 2018: `5,972,752 thousands) Particulars March 31, 2018 March 31, 2017
(Historical value at March 31, 2017: `4,470,202 thousands) Aggregate amount of Company’s investments other than
Preference shares 253,402 317,562 equity securities, mutual fund, investments in subsidiary, 55,101,401 45,106,767
(Market value at March 31, 2018: `279,733 thousands) investment in property and derivative instruments
(Market value at March 31, 2017: `347,825 thousands) Market value of above Investments 55,696,303 46,718,545
Debentures/Bonds 3,905,174 3,336,602 Aggregate amount of Company’s investments in Mutual
(Market value at March 31, 2018: `4,003,283 thousands) Fund, Equity and investments in subsidiary and investment
(Market value at March 31, 2017: `3,484,534 thousands) in property (at Historical cost) 19,068,640 18,683,798
CCIL deposit 204,229 70,029 5. Investments made out of Catastrophe reserve is ` Nil.
(Market value at March 31, 2018: `204,229 thousands) 6. Debt Securities are held to maturity and reduction in market values represent market conditions and
(Market value at March 31, 2017: `70,029 thousands) not a permanent diminution in value of investments, if any.
Fixed deposits3 811,500 643,000 Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.
(Market value at March 31, 2018: `811,500 thousands)
255
 schedules
forming part of the consolidated financial statements Continued
SCHEDULE - 8A
INVESTMENTS - POLICYHOLDERS (` in ‘000)
Particulars March 31, 2018
Par Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked Total
Life Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
LONG TERM INVESTMENT
Government securities1 67,766,380 6,036,755 82,642,284 - - 19,891,211 142,875 4,143,472 242,025 146,678 - - 181,011,680
(Market value: ` 181,138,895 thousands)
Other approved securities 12,001,076 752,011 4,487,958 42,682 - 222,794 - 1,487,068 51,895 104,221 104,651 - 19,254,356
(Market value: ` 18,932,065 thousands)
Other approved investments
Equity shares 19,046,258 1,245,070 26,571,555 - - - - - - - - - 46,862,883
(Historical value: ` 28,326,109 thousands)
Preference shares 79,568 - 2,487 - - - - - - - - - 82,055
(Market value: ` 93,124 thousands)
Debentures/Bonds 2,386,947 1,154,893 5,540,381 377,047 105,049 635,369 47,575 194,632 78,537 - 50,051 - 10,570,481
(Market value: ` 10,835,625 thousands)
Property 400,000 400,000 - - - - - - - - - - 800,000
(Historical value: ` 185,521 thousands)
CCIL deposit - - - - - - - 51 18 - 2 - 71
(Market value: ` 71 thousands)
Fixed deposits 626,400 144,500 1,555,600 - - 356,000 - 173,000 49,000 - - - 2,904,500
(Market value: ` 2,904,500 thousands)
Investments in infrastructure/housing
sector
Other approved investments
Equity shares 2,234,772 145,707 3,384,123 - - - - - - - - - 5,764,602
(Historical value: ` 3,666,799 thousands)
Debentures/Bonds 14,664,601 1,099,901 17,083,498 485,359 20,308 1,712,493 99,987 1,470,076 175,867 159,469 110,183 - 37,081,742
(Market value: ` 37,342,726 thousands)
Other investments
Equity shares 90,547 - 242,764 - - - - - - - - - 333,311
(Historical value: ` 411,253 thousands)
Debentures/Bonds 209,967 - - - - - - - - - - - 209,967
(Market value: ` 211,945 thousands)
Other investments
Equity shares 1,371,544 - 1,847,153 - - - - - - - - - 3,218,697
(Historical value: ` 3,240,912 thousands)
Debentures/Bonds 251,939 - 343,922 - - - - - - - - - 595,861
(Market value: ` 594,355 thousands)
SHORT TERM INVESTMENT
Government securities - - - - - - - - - - - - -
(Market value: ` Nil)
Other approved securities - - - - - - - - - - - - -
(Market value: ` Nil)
Other approved investments
Debentures/Bonds 385,599 65,237 305,011 - - - - - - - - - 755,847
(Market value: ` 757,640 thousands)
Commercial papers - - - - - - - 969,034 - - - - 969,034
(Market value: ` 969,034 thousands)
Mutual fund 4,035,420 - 9,096,558 - - - 5,308 748,316 52,686 50,593 104,528 302,076 14,395,485
(Historical value: ` 14,379,272 thousands)
Collateralized borrowing and lending 93,413 843,410 263,336 25,372 6,568 1,376,851 - 34,261 - - - - 2,643,211
obligation
(Market value: ` 2,643,210 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 1,266,140 45,423 1,045,641 - - 136,501 - 374,289 - - - - 2,867,994
(Market value: ` 2,877,354 thousands)
Commercial papers - - 737,714 - - - - 476,587 385,676 - - - 1,599,977
(Market value: ` 1,599,977 thousands)
Certificate of deposits - - 328,704 - - - - 469,577 - - - - 798,281
(Market value: ` 798,281 thousands)
Other investments
Debentures/Bonds 50,125 - - - - - - - - - - - 50,125
(Market value: ` 49,867 thousands)
Venture fund 118,359 - - - - - - - - - - - 118,359
(Market value: ` 141,190 thousands)
Total 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
In India 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
Total 127,079,055 11,932,907 155,478,689 930,460 131,925 24,331,219 295,745 10,540,363 1,035,704 460,961 369,415 302,076 332,888,519
1. Government securities of ` 2,155,466 thousands with market value of ` 2,103,272 thousands (at March 31, 2017 ` 508,511 thousands with market value of ` 546,500 thousands ) has
been deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit for trades in Securities Segment. Government securities of ` 2,07,055
thousands with market value of ` 212,789 thousands (at March 31, 2017 ` 207,120 thousands with market value of ` 218,000 thousands) has been deposited with CCIL for trades in the
Collateralized borrowing and lending obligation segment - Refer 3.18 of Schedule 16.
2. Aggregate amount of Company’s investments and the market value thereof:
(` in ‘000)
Particulars March 31, 2018 March 31, 2017
Aggregate amount of Company’s investments other than equity securities, mutual fund, investments in subsidiary, investment in property and derivative instruments 261,513,541 212,898,335
Market value of above Investments 261,889,860 221,227,559
Aggregate amount of Company’s investments in Mutual Fund, Equity and investments in subsidiary and investment in property (at Historical cost) 50,209,866 39,305,188
3. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
4.
Investments made out of Catastrophe reserve is ` Nil.
5.
Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.
6. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these securities -
Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

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schedules
forming part of the consolidated financial statements Continued
SCHEDULE - 8A (` in ‘000)
INVESTMENTS - POLICYHOLDERS
Particulars March 31, 2017
Par Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Total
Life Pension Variable Variable Non Par Life Pension Health Group
Pension
LONG TERM INVESTMENT
Government securities1 49,825,645 5,772,630 67,106,859 - - 19,780,819 347,010 4,128,123 355,155 139,530 - 147,455,771
(Market value: ` 153,787,265 thousands)
Other approved securities 10,031,979 742,701 4,476,388 - - 213,199 - 1,765,933 54,119 104,849 105,320 17,494,488
(Market value: ` 17,794,433 thousands)
Other approved investments
Equity shares 14,902,724 1,404,461 20,682,269 - - - - - - - - 36,989,454
(Historical value: ` 21,518,925 thousands)
Preference shares 98,190 - 2,513 - - - - - - - - 100,703
(Market value: ` 115,792 thousands)
Debentures/Bonds 1,612,777 729,402 1,812,719 250,327 100,000 285,589 47,235 194,546 78,341 - 97,329 5,208,265
(Market value: ` 5,470,810 thousands)
Property 1,481,744 384,760 - - - - - - - - - 1,866,504
(Historical value: ` 1,262,956 thousands)
CCIL deposit - - - - - - - 51 18 - 2 71
(Market value: ` 71 thousands)
Fixed deposits 626,400 144,500 874,600 - - 356,000 - 173,000 49,000 - - 2,223,500
(Market value: ` 2,223,500 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 1,935,824 126,831 3,073,330 - - - - - - - - 5,135,985
(Historical value: ` 3,364,763 thousands)
Debentures/Bonds 11,855,605 1,531,294 14,164,073 535,084 20,334 1,498,596 100,000 1,948,374 226,151 110,052 312,516 32,302,079
(Market value: ` 33,587,926 thousands)
Other investments
Equity shares 77,235 - 212,723 - - - - - - - - 289,958
(Historical value: ` 324,262 thousands)
Debentures/Bonds 210,000 - - - - - - - - - - 210,000
(Market value: ` 216,049 thousands)
Other investments
Equity shares 1,215,955 - 1,383,257 - - - - - - - - 2,599,212
(Historical value: ` 1,940,049 thousands)
Debentures/Bonds 313,145 - 1,336,775 - - - - - - - - 1,649,920
(Market value: ` 1,714,219 thousands)
SHORT TERM INVESTMENT
Government securities 2,691 6,405 79,594 - - - - - - - - 88,690
(Market value: ` 89,067 thousands)
Other approved securities - - 249,885 - - - - - - - - 249,885
(Market value: ` 253,807 thousands)
Other approved investments
Debentures/Bonds 540,114 125,000 1,250,773 - - 219,000 - 70,000 30,000 - - 2,234,887
(Market value: ` 2,262,018 thousands)
Commercial papers - 245,776 - - - - - - - - - 245,776
(Market value: ` 245,776 thousands)
Mutual fund 3,518,185 - 5,531,775 - - - 23,541 1,065,728 571,890 27,802 155,311 10,894,232
(Historical value: ` 10,894,232 thousands)
Collateralized borrowing and lending obligation 54,506 190,331 - 22,354 10,156 256,395 - - - - - 533,742
(Market value: ` 533,742 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 575,657 350,038 1,716,504 - - 50,035 - 25,000 13,857 - - 2,731,091
(Market value: ` 2,749,840 thousands)
Other investments
Venture fund 169,465 - - - - - - - - - - 169,465
(Market value: ` 183,243 thousands)
Total 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
In India 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
Total 99,047,841 11,754,129 123,954,037 807,765 130,490 22,659,633 517,786 9,370,755 1,378,531 382,233 670,478 270,673,678
1. Government securities of ` 508,511 thousands with market value of ` 546,500 thousands (at March 31, 2016: ` 498,374 thousands with market value of ` 519,250 thousands) has been
deposited with Clearing Corporation of India Limited (CCIL) as Settlement Guarantee Fund (SGF) deposit. Government securities of ` 207,120 thousands with market value of ` 218,000
thousands (at March 31, 2016:` 207,848 thousands with market value of ` 209,850 thousands) has been deposited with CCIL for trades in the Collateralized borrowing and lending
obligation segment - Refer 3.18 of Schedule 16.
2. Aggregate amount of Company’s investments and the market value thereof:
(` in ‘000)
Particulars March 31, 2017
Aggregate amount of Company’s investments other than equity securities, mutual fund, investments in subsidiary, investment in property and derivative instruments 212,898,335
Market value of above Investments 221,227,559
Aggregate amount of Company’s investments in Mutual Fund, Equity and investments in subsidiary and investment in property (at Historical cost) 39,305,188
3. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
4. Investments made out of Catastrophe reserve is ` Nil.
5. Debt Securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

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forming part of the consolidated financial statements Continued
SCHEDULE — 8B (` in ‘000)
ASSETS HELD TO COVER LINKED LIABILITIES
Particulars March 31, 2018
Linked Life Linked Pension Linked Health Linked Group Linked Group Total
Funds Funds Funds Life Funds Pension Funds
LONG TERM INVESTMENTS
Government securities 73,927,692 10,444,619 623,544 7,692,184 4,878,884 97,566,923
(Historical value: ` 96,941,925 thousands)
Other approved securities 14,037,748 1,576,806 122,699 986,243 616,515 17,340,011
(Historical value: ` 17,440,299 thousands)
Other approved investments
Equity shares 367,993,453 68,846,173 5,184,008 4,165,133 3,649,339 449,838,106
(Historical value: ` 358,453,332 thousands)
Preference shares 268,232 143,051 6,147 272,429 13,443 703,302
(Historical value: ` 565,345 thousands)
Debentures/Bonds 23,937,117 8,833,037 604,253 6,865,824 4,692,786 44,933,017
(Historical value: ` 44,938,468 thousands)
Fixed deposits 557,495 106,095 4,900 22,310 800 691,600
(Historical value: ` 691,600 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 69,624,526 12,936,769 978,434 778,304 703,925 85,021,958
(Historical value: ` 69,231,134 thousands)
Debentures/Bonds 48,285,337 9,812,503 604,554 9,451,888 6,564,160 74,718,442
(Historical value: ` 74,281,673 thousands)
Other investments
Equity shares 9,584,675 1,343,567 76,132 141,219 125,761 11,271,354
(Historical value: ` 15,554,247 thousands)
Debentures/Bonds - - - 30,579 10,193 40,772
(Historical value: ` 38,661 thousands)
Other investments
Equity shares 24,357,637 3,970,364 271,201 363,151 311,757 29,274,110
(Historical value: ` 33,397,090 thousands)
Debentures/Bonds 4,269 5,337 - 289,255 211,338 510,199
(Historical value: ` 503,363 thousands)
Mutual fund 3,816,224 405 137 - - 3,816,766
(Historical value: ` 2,945,661 thousands)
SHORT TERM INVESTMENTS
Government securities 16,898,904 346,277 3,473 181,449 1,035,629 18,465,732
(Historical value: ` 18,406,936 thousands)
Other approved securities 8,242,602 41,874 - - - 8,284,476
(Historical value: ` 8,337,161 thousands)
Other approved investments
Debentures/Bonds 6,029,878 1,007,463 50,401 753,543 819,891 8,661,176
(Historical value: ` 8,673,361 thousands)
Certificate of deposits 3,465,419 103,476 4,982 44,643 426,536 4,045,056
(Historical value: ` 4,004,701 thousands)
Commercial papers 19,087,276 1,031,870 12,157 330,168 1,428,231 21,889,702
(Historical value: ` 21,517,556 thousands)
Fixed deposits 113,354 5,003 28,800 89,600 13,243 250,000
(Historical value: ` 250,000 thousands)
Collateralized borrowing and lending obligation 6,553,443 2,005,023 12,975 234,633 870,926 9,677,000
(Historical value: ` 9,669,885 thousands)
Mutual fund 17,176,754 2,469,308 400,536 438,614 1,553,508 22,038,720
(Historical value: ` 22,012,371 thousands)
Preference shares 11 - - - - 11
(Historical value: ` 11 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 19,295,217 3,483,558 82,427 2,597,710 2,832,584 28,291,496
(Historical value: ` 28,315,024 thousands)
Certificate of deposits 8,312,723 706,523 6,575 161,841 698,745 9,886,407
(Historical value: ` 9,809,505 thousands)
Commercial papers 15,715,291 1,353,109 42,584 511,318 563,989 18,186,291
(Historical value: ` 17,984,283 thousands)
Other investments
Venture Fund 6,243 - - - - 6,243
(Historical value: ` 8,248 thousands)
Net current asset 6,056,014 349,538 59,530 2,236,213 909,519 9,610,814
Total 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684
In India 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684
Total 763,347,534 130,921,748 9,180,449 38,638,251 32,931,702 975,019,684

1. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
2. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these
securities - Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

258
schedules
forming part of the consolidated financial statements Continued
SCHEDULE - 8B (` in ‘000)
ASSETS HELD TO COVER LINKED LIABILITIES
Particulars March 31, 2017
Linked Life Linked Pension Linked Health Linked Group Total
Funds Funds Funds Funds
LONG TERM INVESTMENTS
Government securities 89,891,501 6,370,506 365,816 8,015,583 104,643,406
(Historical value: ` 102,197,174 thousands)
Other approved securities 23,066,125 3,600,838 198,814 4,372,378 31,238,155
(Historical value: ` 31,002,970 thousands)
Other approved investments
Equity shares 284,958,797 86,553,654 4,808,504 6,572,088 382,893,043
(Historical value: ` 289,799,327 thousands)
Preference shares 383,198 195,707 9,987 355,618 944,510
(Historical value: ` 764,890 thousands)
Debentures/Bonds 13,616,044 5,962,403 279,219 9,404,456 29,262,122
(Historical value: ` 28,745,748 thousands)
Fixed deposits 720,779 123,794 44,700 66,827 956,100
(Historical value: ` 956,100 thousands)
Investments in infrastructure/housing sector
Other approved investments
Equity shares 64,828,955 17,224,017 675,878 1,790,323 84,519,173
(Historical value: ` 72,367,735 thousands)
Debentures/Bonds 38,719,839 13,243,046 852,800 15,909,974 68,725,659
(Historical value: ` 67,952,120 thousands)
Other investments
Equity shares 7,781,096 1,333,650 58,548 259,036 9,432,330
(Historical value: ` 13,030,998 thousands)
Debentures/Bonds - - - 41,046 41,046
(Historical value: ` 37,653 thousands)
Other investments
Equity shares 20,665,058 6,230,938 263,599 651,585 27,811,180
(Historical value: ` 24,913,186 thousands)
Debentures/Bonds 452,873 536,010 11,617 863,312 1,863,812
(Historical value: ` 1,772,589 thousands)
Mutual fund 5,260,416 751,379 - 68,555 6,080,350
(Historical value: ` 5,351,333 thousands)
SHORT TERM INVESTMENTS
Government securities 22,772,322 2,673,117 19,765 2,795,653 28,260,857
(Historical value: ` 28,118,974 thousands)
Other approved securities 1,907,940 - - - 1,907,940
(Historical value: ` 1,915,654 thousands)
Other approved investments
Debentures/Bonds 1,197,775 392,571 11,461 613,437 2,215,244
(Historical value: ` 2,218,043 thousands)
Commercial papers 6,056,189 909,302 5,382 898,151 7,869,024
(Historical value: ` 7,651,896 thousands)
Fixed deposits 3,889,600 936,300 103,500 1,565,625 6,495,025
(Historical value: ` 6,495,025 thousands)
Collateralized borrowing and lending obligation 5,709,467 1,250,291 6,299 740,373 7,706,430
(Historical value: ` 7,705,185 thousands)
Mutual fund 24,657,966 3,996,356 491,024 3,242,901 32,388,247
(Historical value: ` 32,388,247 thousands)
Investments in infrastructure/housing sector
Other approved investments
Debentures/Bonds 9,227,837 2,588,229 82,609 3,692,671 15,591,346
(Historical value: ` 15,422,105 thousands)
Certificate of deposits 8,525,214 923,034 34,688 2,250,693 11,733,629
(Historical value: ` 11,669,600 thousands)
Commercial papers 4,084,751 151,589 - 65,555 4,301,895
(Historical value: ` 4,088,886 thousands)
Other investments
Venture Fund 6,559 - - - 6,559
(Historical value: ` 10,030 thousands)
Net current asset 6,118,294 2,369,042 126,661 3,282,372 11,896,369
Total 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
In India 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
Total 644,498,595 158,315,773 8,450,871 67,518,212 878,783,451
1. For Investments in holding company and other related entities - Refer note 3.8 of schedule 16.
2. Equity shares includes shares transferred under securities lending and borrowing scheme (SLB) where the Company retains all the associated risk and rewards on these
securities - Refer note 3.19 of schedule 16.
Note: Refer note 2.11 of schedule 16 for accounting policy related to investments.

259
 schedules
forming part of the consolidated financial statements Continued
SCHEDULE - 9
LOANS
(` in ‘000) (` in ‘000)
Particulars March 31, 2018 March 31, 2017 Particulars March 31, 2018 March 31, 2017
1. Security-wise classifications 3. Performance-Wise Classification
Secured (a) Loans classified as standard
(a) On mortgage of property
(aa) In India 1,450,588 806,448
(aa) In India - -
(bb) Outside India - - (bb) Outside India - -
(b) On Shares, Bonds, Govt Securities, etc. - - (b) Non-standard loans less provisions
(c) Loans against policies 1,450,588 806,448 (aa) In India - -
(d) Others - -
(bb) Outside India - -
Unsecured - -
Total 1,450,588 806,448 Total 1,450,588 806,448

2. Borrower wise classification 4. Maturity-wise classification

(a) Central and State Governments - - (a) Short-term 36,072 21,470
(b) Banks and Financial Institutions - -
(c) Subsidiaries - - (b) Long-term 1,414,516 784,978
(d) Companies - - Total 1,450,588 806,448
(e) Policyholders - Loans against policies 1,450,588 806,448
(f) Others - - Refer Note 2.12 of Schedule 16 for accounting policy related to Loans.
Total 1,450,588 806,448

SCHEDULE - 10
FIXED ASSETS
(` in ‘000)
Particulars Gross Block Depreciation Net Block
At At At At At At
April 1, March 31, April 1, For the March 31, March 31, March 31,
Additions Deductions Deductions
2017 2018 2017 period 2018 2018 2017
Intangible assets
Goodwill - - - - - - - - - -
Software1 1,168,726 71,416 2,451 1,237,691 947,989 104,167 851 1,051,305 186,386 220,738
Tangible assets
Freehold land 903,280 - - 903,280 - - - - 903,280 903,280
Improvements to leasehold property 1,386,439 45,390 57,870 1,373,959 1,076,353 79,707 57,869 1,098,191 275,768 310,086
Office buildings on freehold land2 89,000 1,835,731 - 1,924,731 14,570 9,675 - 24,245 1,900,486 74,430
Furniture and fixtures 295,020 17,948 9,350 303,618 216,337 24,064 8,638 231,763 71,855 78,683
Information technology equipment 450,859 54,498 15,683 489,674 318,087 77,526 9,859 385,754 103,920 132,772
Motor vehicles 102,436 27,898 36,511 93,823 41,507 17,446 31,646 27,307 66,516 60,929
Office equipment 437,649 47,358 11,809 473,198 283,334 65,694 10,394 338,634 134,564 154,315
Communication networks 311,662 330,368 6 642,024 181,265 58,764 4 240,025 401,999 130,397
Total 5,145,071 2,430,607 133,680 7,441,998 3,079,442 437,043 119,261 3,397,224 4,044,774 2,065,630
Capital work in progess including - - - - - - - - 175,848 72,346
capital advances
Total 5,145,071 2,430,607 133,680 7,441,998 3,079,442 437,043 119,261 3,397,224 4,220,622 2,137,976
At March 31, 2017 4,647,906 538,625 41,460 5,145,071 2,526,866 578,659 26,083 3,079,442
Refer note 2.13 of schedule 16 for accounting policy related to fixed assets
1
All software are other than those generated internally.
2
Refer note 3.24 of schedule 16

SCHEDULE - 11 SCHEDULE - 12
CASH AND BANK BALANCES ADVANCES AND OTHER ASSETS
(` in ‘000) (` in ‘000)
Particulars March 31, 2018 March 31, 2017 Particulars March 31, 2018 March 31, 2017
Cash (including cheques, drafts and stamps)* 1,345,557 1,408,060 Advances
Bank Balance Reserve deposits with ceding companies - -
(a) Deposit Account : Application money for investments (including - -
(aa) Short-term (due within 12 months of advance for investment property)
the date of balance sheet) - - Prepayments 391,765 382,694
(bb) Others - - Advances to Directors/Officers - -
(b) Current accounts 687,807 728,523 Advance tax paid and taxes deducted at source 2,104,605 3,041,490
(c) Unclaimed Dividend Accounts - Refer note 4,768 697 (Net of provision for taxation)
3.21 of schedule 16 Advances to Employees - -
Money at call and short notice Deposits
(a) With Banks - - Gross 323,320 372,418
Less:Provision for doubtful deposits (31,744) (30,933)
(b) With other Institutions - -
Net 291,576 341,485
Others - - Other advances
Total 2,038,132 2,137,280 Gross 260,757 184,769
Balances with non-scheduled banks included above 1,637 6,831 Less:Provision for doubtful advances (4,830) (3,921)
Cash and Bank Balances Net 255,927 180,848
In India 2,031,989 2,116,470 Other receivables
Outside India 6,143 20,810 Gross 719,176 151,649
Total 2,038,132 2,137,280 Less:Provision for doubtful receivables (19,753) (30,288)
Net 699,423 121,361
*includes cheques in hand amounting to ` 1,214,411 thousands (` 1,378,024
thousands as on March 31, 2017) Total (A) 3,743,296 4,067,878

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schedules
forming part of the consolidated financial statements Continued
SCHEDULE - 12 (contd...) SCHEDULE - 15
ADVANCES AND OTHER ASSETS MISCELLANEOUS EXPENDITURE
(` in ‘000) (To the extent not written off or adjusted)
Particulars March 31, 2018 March 31, 2017
OTHER ASSETS (` in ‘000)
Income accrued on investments and deposits 9,243,737 7,655,149 Particulars March 31, 2018 March 31, 2017
Outstanding premiums 1,649,630 1,815,959 Discount allowed in issue of shares / debentures - -
Agents’ balances
Gross 24,046 31,150 Others - -
Less:Provision for doubtful agents' balance (18,910) (27,053) Total - -
Net 5,136 4,097
Foreign agencies balances - -
Due from other entities carrying on insurance 394,343 88,632 Schedule: 16
business (including reinsurers) Significant accounting policies and notes forming part of the financial statements
Deposit with Reserve Bank of India - - for the year ended March 31, 2018
Receivable towards investments sold 1,024,700 6,081,217
Goods & Service tax and Service tax un-utilised 946,975 216,360 1. Corporate Information
credit
These financial statements comprise of the consolidated financial statements
Assets held for unclaimed amount of 7,614,642 6,267,915
of ICICI Prudential Life Insurance Company Limited, the holding company,
policyholders* - Refer note 3.3 of schedule 16
with the financial statements of its subsidiary ICICI Prudential Pension Funds
Income on unclaimed amount of policyholders 482,269 322,510
Management Company Limited (together referred to as “the Group”).
(net of fund administration expenses)
Total (B) 21,361,432 22,451,839 ICICI Prudential Life Insurance Company Limited (`the holding company’) is a
Total (A+B) 25,104,728 26,519,717 joint venture between ICICI Bank Limited and Prudential Corporation Holdings
*excluding Income on unclaimed amount of policyholders (net of fund administration Limited, incorporated on July 20, 2000 as a Company under the Companies
expenses). Act, 2013 (`the Act’). The holding company is licensed by the Insurance
Regulatory and Development Authority of India (`IRDAI’) for carrying life
SCHEDULE - 13 insurance business in India. The license is in force as at March 31, 2018.
CURRENT LIABILITIES The holding company carries on business of providing life insurance, pensions
(` in ‘000) and health insurance to individuals and groups. Riders providing additional
benefits are offered under some of these products. The business is conducted
Particulars March 31, 2018 March 31, 2017 in participating, non-participating, non-participating variable and unit linked
Agents’ balances 1,176,510 669,308 lines of businesses. These products are distributed through individual agents,
Balances due to reinsurance companies 99,700 43,440 corporate agents, banks, brokers, the holding company’s proprietary sales
Deposits held on re-insurance ceded - - force and the holding company website.
Premium received in advance 2,060,677 1,284,802 ICICI Prudential Pension Funds Management Company Limited (`the
Unallocated premium 2,548,452 4,867,753 Subsidiary’) is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited, incorporated on April 22, 2009 as a company under the
Sundry creditors 64,593 89,154 Companies Act, 1956 (`the Act’). The Subsidiary is licensed by the Pension
Due to holding company - Refer note 3.8 of 863,165 1,064,851 Funds Regulatory and Development Authority (`PFRDA’) for acting as a
Schedule 16 Pension Fund Manager for the management of the pension funds under the
Claims outstanding 2,548,024 691,659 National Pension System. The license is in force at March 31, 2018.
Due to Officers/ Directors - -
2. Summary of significant accounting policies
Deposits 88,475 88,475
Expenses payable 5,638,159 5,338,424 2.1. Basis of preparation
The accompanying consolidated financial statements are prepared and
TDS payable 214,214 197,543
presented under the historical cost convention, unless otherwise stated, and
Payable towards investments purchased 2,029,546 1,192,640 on the accrual basis of accounting, in accordance with accounting principles
Unclaimed amount of Policyholders1 - Refer 7,614,642 6,267,915 generally accepted in India (`Indian GAAP’). The Group has prepared the
note 3.4 of schedule 16 financial statements in compliance with the accounting standards notified
Interest on unclaimed amount of Policyholders 482,269 322,510 under section 133 of the Companies Act 2013, to the extent applicable and
Payable to unit fund 4,583,407 1,567,612 in accordance with the provisions of the Insurance Act, 1938 Insurance
Regulatory and Development Authority Act, 1999, the Insurance Regulatory
Goods & Service tax/Service tax payable 1,643,143 7,620
and Development Authority (Preparation of Financial Statements and Auditors’
Other liabilities* 2,601,763 4,466,629 Report of Insurance Companies) Regulations, 2002 and various orders/
Total 34,256,739 28,160,335 directions/circulars issued by the IRDAI and the practices prevailing within the
insurance industry in India. Accounting policies applied have been consistent
*Includes unclaimed dividend amounting to ` 4,768 thousands (` 697 thousands at
with previous year except where differential treatment is required as per new
March 31, 2017)
pronouncements made by the regulatory authorities and except for changes in
1
Excluding Interest on unclaimed amount of policyholders. accounting policy mentioned below.
The management evaluates all recently issued or revised accounting
SCHEDULE - 14 pronouncements on an ongoing basis.
PROVISIONS
2.2. Use of estimates
(` in ‘000)
The Group’s management makes estimates and assumptions that affect the
Particulars March 31, 2018 March 31, 2017 reported amounts of income and expenses for the year, reported balances of
For taxation - - assets and liabilities, and disclosures relating to contingent liabilities as on the
For proposed dividends - Refer note 3.21 of - - date of the financial statements. The estimates and assumptions used in the
schedule 16 accompanying financial statements are based upon management’s evaluation
For dividend distribution tax - Refer note 3.21 of - - of the relevant facts and circumstances as on the date of the financial
schedule 16 statements. Actual results could differ from those estimates. Any revision to
accounting estimates is recognised prospectively.
For leave encashment and gratuity 221,844 204,960
For interim dividend - Refer note 3.21 of 2.3. Revenue recognition
schedule 16 - -
2.3.1. Premium income
Total 221,844 204,960
Premium for non-linked policies is recognised as income when due
from policyholders. For unit linked business, premium is recognised
as income when the associated units are created.

261
 schedules
forming part of the consolidated financial statements
Premium on lapsed policies is recognised as income when such
policies are reinstated.
Products having regular premium paying plans with limited premium
payment term and/or pre-determined policy term are treated as
regular business with due classification of premium into first year
and renewal. Premium income on products other than aforesaid is
classified as single premium.
Top up premiums paid by unit linked policyholders’ are considered
as single premium and recognised as income when the associated
units are created.
2.3.2. Reinsurance premium ceded
Reinsurance premium ceded is accounted in accordance with the
terms and conditions of the relevant treaties with the reinsurer. Profit
commission on reinsurance ceded is netted off against premium
ceded on reinsurance.
2.3.3. Income from investments
Interest income on investments is recognised on accrual basis. In case
of Life insurance business, amortisation of premium or accretion of
discount on debt securities is recognised over the remaining term of
such instruments on the basis of effective interest rate method.
In case of Pension Fund Management business, amortisation of
premium or accretion of discount on debt securities is recognised
over the holding/maturity period on a straight-line basis.
Dividend income, in respect of other than unit linked business, is
recognised when the right to receive dividend is established. Dividend
income, in respect of unit linked business, is recognised on the `ex-
dividend date’.
Fees received on lending of equity shares under Securities Lending
and Borrowing scheme (SLB) is recognised as income over the period
of the lending on a straight-line basis.
Lease rentals on investment property are recognised on accrual basis
and include only the realised rent and does not include any notional
rent, as prescribed by IRDA (Preparation of Financial Statements and
Auditors’ Report of Insurance Companies) Regulations 2002. Costs
related to operating and maintenance of investment property are
recognised as expense in the Revenue Account and Profit and Loss
Account.
Profit or loss on sale/redemption of debt securities for other than unit
linked business is the difference between the sale consideration net
of expenses and the weighted average amortised cost as on the date
of sale. Profit or loss on sale/redemption of debt securities for unit
linked business is the difference between the sale consideration net of
expenses and the weighted average book cost as on the date of sale.
Profit or loss on sale/redemption of equity shares, equity exchange
traded fund (ETF) and mutual fund units is the difference between
the sale consideration net of expenses and the weighted average
book cost as on the date of sale. In respect of other than unit linked
business, the profit or loss includes the accumulated changes in
the fair value previously recognised in Balance Sheet as “Fair Value
Change Account”.
2.3.4. Income from unit linked policies
Income from unit linked policies, which includes fund management
charges, policy administration charges, mortality charges and other
charges, if any, are recovered from the unit linked funds in accordance
with terms and conditions of policies issued and are recognised when
due.
2.3.5. Fees and charges
In case of Life Insurance business, fees and charges include policy
reinstatement fee and loan processing fee which are recognised on
receipt basis.
Interest income on loans is also included in fees and charges which is
recognised on an accrual basis.
In case of Pension Fund Management business, Investment
management fees are recognised on an accrual basis in accordance
with the terms of contract between the subsidiary and the National
Pension System Trust, established by the PFRDA.
2.4. Acquisition cost
Acquisition costs are costs that vary with and are primarily related to
acquisition of insurance contracts and are expensed in the period in which
they are incurred.
262
Continued
2.5. Employee benefits
2.5.1. Short term employee benefits
Employee benefits payable within twelve months of rendering the
service are classified as short-term employee benefits. Benefits
such as salaries, bonuses, short term compensated absences and
other non-monetary benefits are recognised in the period in which
the employee renders the related service. All short term employee
benefits are accounted on undiscounted basis.
2.5.2. Long term employee benefits: Post-employment
The holding company has both defined contribution and defined
benefit plans.
Defined contribution plan
The holding company has a defined contribution scheme
for Superannuation for its employees. Contributions to the
Superannuation scheme are made on a monthly basis, when due,
and charged to Revenue account and Profit and Loss account, as
applicable. The holding company has no further obligation beyond
the monthly contribution. The scheme is managed by ICICI Prudential
Life Insurance Company Limited Superannuation Scheme.
Further the company for certain employees contributes to National
Pension Scheme which is managed and administered by pension fund
management companies licensed by the Pension Funds Regulatory
and Development Authority (‘PFRDA’). Contribution made to National
Pension Scheme is charged to Revenue account and Profit and Loss
Account as applicable.
Defined benefit plans
Gratuity and Provident fund are defined benefit obligations.
Gratuity: The gratuity benefit payable to the employees of the holding
company is as per the provisions of the Payment of Gratuity Act, 1972
or the holding company’s gratuity plan, whichever is higher. The
gratuity liability of the holding company is actuarially determined at
each Balance Sheet date using projected unit credit method.
The holding company contributes towards net liabilities to ICICI
Prudential Life Insurance Company Limited Employees’ Group
Gratuity Cum Life Insurance Scheme.
The holding company recognises the net obligation of the Scheme
in Balance Sheet as an asset or liability, respectively in accordance
with Accounting Standard (AS) 15 (revised 2005), ‘Employee
benefits’. The discount rate used for estimation of liability is based
on Government securities yield. Gain or loss arising from change in
actuarial assumptions/experience adjustments is recognised in the
Revenue account and Profit or Loss account for the period in which
they emerge. Estimated rate of return on plan assets is based on the
expected average long-term rate of return on investments of the Fund
during the estimated term of the obligations.
Provident fund: The holding company’s defined benefit obligation
towards interest rate guarantee on the exempt provident fund
is actuarially determined and measured in accordance with the
Guidance Note (GN 29) on Valuation of Interest Rate Guarantees on
Exempt Provident Funds under AS 15 (Revised) issued by The Institute
of Actuaries of India.
2.5.3. Other long term employee benefits
Other long term employee benefits includes accumulated compensated
absences that are entitled to be carried forward for future encashment
or availment, at the option of the employee subject to the rules framed
by the holding company and includes long term retention incentive
payable to employees on fulfilment of criteria prescribed the holding
company. The holding company’s liability towards accumulated
compensated absences entitlement outstanding at the close of the
year and long term retention incentive are determined actuarially and
are recognised as a liability at the discounted present value of the
obligation as at the Balance Sheet date.
2.5.4. Employee share based payments
The Employee Stock Option Scheme (‘the Scheme’) provides that
eligible employees are granted options to subscribe to equity shares
of the holding company which vest in a graded manner. The vested
options may be exercised within a specified period.
The Company follows the intrinsic value method to account for its
share-based employee compensation plans. Compensation cost is
measured as the excess, if any, of the fair market price of the underlying
stock over the exercise price on the grant date and amortised over
the vesting period. The fair market price is the latest closing price,
schedules
forming part of the consolidated financial statements
immediately prior to the grant date, on the stock exchange on which
the shares of the company are listed. If the shares are listed on more
than one stock exchange, then, the stock exchange where there is
highest trading volume on the said date is considered.
2.6. Operating lease expenses
Leases where the lessor effectively retains substantially all the risks and
rewards of ownership are classified as operating leases. Payments made under
operating lease including escalations are recognised as an expense, on a
straight line basis, over the lease term.
2.7. Provision for doubtful debts
The Group regularly evaluates the probability of recovery and provides for
doubtful deposits, advances and others receivables.
2.8. Benefits paid
Benefits paid comprise of policy benefits and claim settlement costs, if any.
Death and rider claims are accounted for on receipt of intimation. Survival and
maturity benefits are accounted when due. Withdrawals and surrenders under
non linked policies are accounted on the receipt of intimation. Withdrawals and
surrenders under unit linked policies are accounted in the respective schemes
when the associated units are cancelled.
Change in Accounting Policy
During the year, for more appropriate presentation, reinsurance claims
receivable are accounted for in the period in which the claim is intimated.
Prior to this change in accounting policy, reinsurance claims receivable were
accounted in the period in which the claim was settled. Consequent to the said
change, reinsurance claims and thereby the profit for the year ended March
31, 2018 is higher by ` 135,177 thousand. Correspondingly, reinsurance claim
receivable is also higher by ` 135,177 thousand as at the Balance Sheet date.
2.9. Actuarial liability valuation
The actuarial liabilities are calculated in accordance with accepted actuarial
practice, requirements of Insurance Act, 1938 regulations notified by the
Insurance Regulatory and Development Authority of India and Actuarial
Practice Standards of the Institute of Actuaries of India.
2.10. Funds for Future Appropriations (FFA)
FFA (Unit linked)
Amounts estimated by Appointed Actuary as FFA in respect of lapsed unit
linked policies, are set aside in the Balance Sheet and are not available for
distribution to Shareholders until the expiry of the maximum revival period.
FFA (Participating)
Based on the recommendation of Appointed Actuary unappropriated surplus
is held in the Balance Sheet as Funds for Future Appropriations.
2.11. Investments
Investments are made and accounted for in accordance with the Insurance Act,
1938, Insurance Regulatory and Development Authority of India (Investment)
Regulations, 2016, Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance
Companies) Regulations, 2002, Investments – Master circular, Investment
Policy of the group and various other circulars/notifications issued by the IRDAI
in this context from time to time.
Investments are recorded at cost on the date of purchase, which includes
brokerage and taxes, if any, but excludes interest accrued as on the date of
purchase.
Broken period interest paid/received is debited/credited to interest receivable
account.
Bonus entitlements are recognised as investments on the ‘ex- bonus date’.
Rights entitlements are recognised as investments on the ‘ex-rights date’.
Any front end discount on investments is reduced from the cost of such
investments.
2.11.1. Classification
Investments maturing within twelve months from the Balance Sheet
date and investments made with the specific intention to dispose them
off within twelve months from the Balance Sheet date are classified as
short-term investments.
Investments other than short-term investments are classified as long-
term investments.
2.11.2. Valuation - Other than Unit Linked business
In case of Life Insurance business, all debt securities including
government securities and redeemable preference shares are
considered as `held to maturity’ and stated at historical cost, subject to
Continued
amortisation of premium or accretion of discount over the remaining
period to maturity on effective interest rate method.
Money market instruments are valued at historical cost, subject to
accretion of discount over the remaining period to maturity based on
effective interest rate method.
Listed equity shares at the Balance Sheet date are stated at fair value
being the last quoted closing price on the National Stock Exchange of
India Limited (‘NSE’) (in case the securities are not listed on NSE, the
last quoted closing price on the BSE Limited (‘BSE’) is used). Unlisted
equity shares are stated at historical cost. Equity shares lent under
the Securities Lending and Borrowing scheme (SLB) continue to be
recognised in the Balance Sheet as the holding company retains all the
associated risks and rewards of these securities.
Mutual fund units are valued based on the previous days’ net asset
values.
Unrealised gains/losses arising due to changes in the fair value of
listed equity shares and mutual fund units are taken to the “Fair Value
Change Account” in the Balance Sheet.
Investment property is held to earn rental income or for capital
appreciation and is not occupied by the Group. Investment property
is initially valued at cost including any directly attributable transaction
costs. Investment property is revalued at least once in every three
years. The change in carrying amount of investment property is taken
to “Revaluation reserve” in the Balance Sheet.
Investments in venture fund units are valued at historical cost.
Instruments bought on `reverse repo’ basis are valued at cost plus
interest accrued on reverse repo rate.
Fixed deposits with banks are valued at cost.
The Group assesses at each Balance Sheet date whether there is any
evidence of impairment of any investments. In case of impairment, the
carrying value of such investment is reduced to its fair value and the
impairment loss is recognised in the Revenue/Profit and Loss account
after adjusting it with previously recognised revaluation reserve/Fair
value change account. However, at the Balance Sheet date if there is
any indication that a previously recognised impairment loss no longer
exists, then such loss is reversed and the investment is restated to
that extent.
2.11.3. Valuation - Unit Linked business
Central and State government securities are valued as per the
valuation price provided by Credit Rating Information Services of India
Limited (CRISIL).
Debt securities other than government securities with a residual
maturity over 182 days are valued on a yield to maturity basis, by
using spreads over the benchmark rate (based on the matrix released
by the CRISIL on daily basis) to arrive at the yield for pricing the
security.
Debt securities with a residual maturity upto 182 days are valued at
last valuation price plus the difference between the redemption value
and last valuation price, based on effective interest rate method over
the remaining period to maturity of instrument.
Money market instruments are valued at historical cost, subject to
accretion of discount over the period of maturity/holding based on
effective interest rate method.
Listed equity shares, redeemable preference shares and equity ETF
are valued at market value, being the last quoted closing price on the
NSE (in case of securities not listed on NSE, the last quoted closing
price on the BSE is used). Equity shares lent under the Securities
Lending and Borrowing scheme (SLB) continue to be recognised in
the Balance Sheet as the Company retains all the associated risks and
rewards of these securities.
Mutual fund units are valued based on previous day’s Net Asset Value.
Venture fund units are valued at the latest available net asset value of
the respective fund.
Securities with call option are valued at the lower of the value as
obtained by valuing the security upto final maturity date or the call
option date. In case there are multiple call options, the security is
valued at the lowest value obtained by valuing the security at various
call dates or upto the final maturity date.
Securities with put option are valued at the higher of the value as
obtained by valuing the security upto final maturity date or the put
option date. In case there are multiple put options, the security is
valued at the highest value obtained by valuing the security at various
put dates or upto the final maturity date.
263
 schedules
forming part of the consolidated financial statements
The securities with both put and call option on the same day would be
deemed to mature on the put/call date and would be valued on a yield
to maturity basis, by using spreads over the benchmark rate based on
the matrix released by CRISIL.
Instruments bought on `reverse repo’ basis are valued at cost plus
interest accrued on reverse repo rate.
Unrealised gains and losses are recognised in the Revenue account as
prescribed by IRDA (Preparation of Financial Statements and Auditors’
Report of Insurance Companies) Regulations 2002.
Fixed deposits with banks are valued at cost.
2.11.4. Valuation - Pension fund management business
Short term investments are carried at lower of cost or fair value
determined on an individual investment basis. Long term investments
are carried at cost.
2.11.5. Transfer of investments
In case of Life insurance business, transfer of investments from
Shareholders’ fund to the Policyholders’ fund to meet the deficit in
the Policyholders’ account is made at amortised/book cost or market
price, whichever is lower.
The transfer of investments between unit liked funds is done at the
price as specified below.
a. In case of equity, preference shares, ETFs and Government
Securities market price of the latest trade.
b. In case of securities mentioned in (a) if the trade has not taken
place on the day of transfer and for all other securities not part of
(a) previous day valuation price.
No transfer of investments is carried out between non-linked
policyholders’ funds.
2.12. Loans
Loans are stated at historical cost, subject to provision for impairment, if any.
Loans are classified as short term in case the maturity is less than 12 months.
Loans other than short term are classified as long term
2.13. Fixed assets and Impairment
2.13.1. Tangible assets and depreciation
Tangible assets are stated at acquisition cost less accumulated
depreciation and impairment loss, if any. Cost includes the purchase
price net of any trade discounts and rebates, any import duties and
other taxes (other than those subsequently recoverable from the tax
authorities) and any cost directly attributable to bring the asset to its
working condition for its intended use and other incidental expenses
incurred upto that date. Subsequent expenditure incurred on tangible
assets is expensed out except where such expenditure results in
an increase in future benefits from the existing assets beyond it’s
previously assessed standard of performance.
The useful life of various category of assets is as below:
Asset Useful life(years)
Office buildings on freehold land 60
Improvement to leasehold properties Lease period, subject to
maximum of 9 years
Furniture and fixtures 10
Office equipment 5 credits available from tax paid on input services. Unutilised credits, if
Information technology equipment 3 any, are carried forward for future set-off, where there is reasonable
Communication networks and servers 6 certainty of utilisation.
Motor vehicles 5
Schedule II of the Companies Act 2013 specifies the useful life of
eight years for motor vehicle. As per holding company policy, the
motor vehicle is transferred to employee on completion of five years
or at written down value (WDV) in case of separation of employee
before five years. Accordingly, the holding company has depreciated
the motor vehicle over five years. Assets costing upto ` 5,000 are
considered to be immaterial in value and hence fully depreciated in
the year of acquisition.
Depreciation is provided using straight-line method (‘SLM’) prorated
from the date of being ready to use, upto the date of sale, based on
estimated useful life for each class of asset.
2.13.2. Intangibles
Intangible assets comprising software are stated at cost less
amortisation. Significant expenditure on improvements to software
are capitalised when it is probable that such expenditure will enable
the asset to generate future economic benefits in excess of its
originally assessed standards of performance and such expenditure
264
Continued
can be measured and attributed to the asset reliably. Subsequent
capital expenditures are amortised over the remaining useful life of
original software. Software expenses are amortised using SLM over a
period of 4 years from the date of being ready to use.
2.13.3. Capital work in progress
Assets not ready for their intended use and other capital work-in-
progress are carried at cost, comprising direct cost and related
incidental expenses.
2.13.4. Impairment of assets
Management periodically assesses, using external and internal
sources, whether there is any indication that an asset may be impaired.
If any such indication exists, an estimate of the recoverable amount of
the asset unit is made. Impairment occurs where the carrying value
of the asset exceeds the recoverable amount. Recoverable amount
is higher of an asset’s net selling price and its value in use. Value in
use is the present value of estimated future cash flows expected to
arise from the continuing use of the asset and its ultimate disposal.
If at the Balance Sheet date there is an indication that a previously
assessed impairment loss no longer exists, the recoverable amount
is reassessed and the asset is reflected at the recoverable amount,
subject to a maximum of depreciable historical cost.
2.14. Taxation
2.14.1. Direct taxes
Income tax expense comprises of current tax (i.e. amount of tax
for the year determined in accordance with the Income Tax Act,
1961) and deferred tax charge or credit (reflecting the tax effects of
timing differences between accounting income and taxable income
for the year).
Current tax is the amount expected to be paid to the tax authorities
after taking credit for allowances and exemptions in accordance with
the Income Tax Act, 1961.
The deferred tax asset and liabilities are recognised using the tax rates
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred tax assets are recognised and carried forward only to
the extent there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can
be realised. However, deferred tax asset in respect of unabsorbed
depreciation or carried forward loss are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets are
reviewed at each Balance Sheet date and written down or written up
to reflect the amount that is reasonable / virtually certain (as the case
may be) to be realised.
The group calculates tax for the participating lines of business in
order to ensure that the expenses pertaining to and identifiable
with a particular line of business are represented as such to enable
a more appropriate presentation of the consolidated financial
statements. Accordingly, tax charge/credit on surplus/deficit arising
from the participating line of business is disclosed separately in the
Revenue account.
2.14.2. Indirect taxes
Service tax or Goods and Services tax liability on life insurance service
is set-off against the respective service tax and goods and service tax
2.15. Provisions and contingencies
Provision is recognized when the group has a present obligation as a result of
past event and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. Provisions are determined based
on the management estimate of amount required to settle the obligation at
the reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. A disclosure of a contingent
liability is made when there is a possible obligation or present obligations that
may, but probably will not, require an outflow of resources or it cannot be
reliably estimated. When there is a possible obligation or a present obligation
in respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Contingent assets are neither recognised nor disclosed.
2.16. Segmental reporting
In case of Life Insurance business, based on the primary segments identified
under IRDA (Preparation of Financial Statements and Auditors’ Report of
schedules
forming part of the consolidated financial statements Continued
Insurance Companies) Regulations 2002 (‘the Regulations’) read with AS 3. Notes to accounts
17 on “Segmental Reporting” notified under section 133 of the Companies
3.1. Contingent liabilities
Act 2013 and rules thereunder, the Group has classified and disclosed
segmental information separately for Shareholders’ and Policyholders’. Within (` in ‘000)
Policyholders’, the businesses are further segmented into Participating (Life Particulars At At
and Pension), Non-Participating, Non-Participating variable (Life and Pension), March 31, 2018 March 31, 2017
Annuity, Health and Linked (Life, Pension, Health and Group). Partly-paid up investments - -
Claims, other than those under policies, not
There are no reportable geographical segments, since all business is written acknowledged as debts comprising of:
in India. -  Claims made by vendors for disputed payments 1,066 1,034
-  Claims for damages made by landlords (of 37,971 37,971
The allocation and apportionment of revenue, expenses, assets and liabilities premises taken on lease)
to specific segments is done in the following manner, which is applied on a -  Claims made by employees and advisors for 8,930 5,182
consistent basis. disputed dues and compensation
•  evenue, expenses, assets and liabilities that are directly identifiable to
R Underwriting commitments outstanding (in respect - -
of shares and securities)
the segment are allocated on actual basis;
Guarantees given by or on behalf of the Company - -
• Other revenue, expenses (including depreciation and amortisation), by various banks in favour of government
assets and liabilities that are not directly identifiable to a segment are authorities, hospital and court
apportioned based on the relevant drivers which includes: Statutory demands/liabilities in dispute, not 1,536,996 1,536,996
provided for#
• Number of policies Reinsurance obligations to the extent not provided for - -
• Weighted annualised first year premium income Policy related claims under litigation in different
consumer forums:
• Annualised premium since inception -  Claims for service deficiency 89,959 86,513
-  Claims against repudiation 308,096 404,963
• Sum assured
Others
• Total premium income -  Transfer to Senior Citizen Welfare Fund* 48,166 -
Total 2,031,184 2,072,659
• Medical cases
#
` 1,536,996 thousand is on account of objections raised by office of the
• Funds under management Commissioner of Service tax, Mumbai (through the Service Tax audit under EA-2000)
• Commission on certain positions taken by the Company).
* The above amount represents unclaimed amount of policyholders more than 120
• Total operating expenses (for assets and liabilities) months transferred to Senior Citizens’ Welfare Fund (SCWF) which is required to be
shown as contingent liability as per IRDAI circular IRDA/F&A/CIR/Misc/173/07/2017.
• Use of asset (for depreciation expense)
Further as per the circular, in case Company receives claims in respect of unclaimed
amounts which have been transferred to the SCWF, Company may adjust the amount
2.17. Foreign exchange transactions of such claims from the amounts due to be transferred to the Fund (SCWF).
Initial recognition: Foreign currency transactions are recorded in Indian
Rupees, by applying to the foreign currency amount the exchange rate between 3.2. Actuarial method and assumptions
the Indian Rupee and the foreign currency at the date of the transaction. The actuarial liability in respect of both participating and non-participating
Conversion: Foreign currency monetary items are translated using the policies is calculated using the gross premium method, using assumptions
exchange rate prevailing at the reporting date. Non-monetary items, which are for interest, mortality, morbidity, expense and inflation and, in the case of
measured in terms of historical cost denominated in a foreign currency, are participating policies, future bonuses together with allowance for taxation
reported using the exchange rate at the date of the transaction. Non-monetary and allocation of profits to shareholders. These assumptions are determined
items, which are measured at fair value or other similar valuation denominated as prudent estimates at the date of valuation with allowances for adverse
in a foreign currency, are translated using the exchange rate at the date when deviations.
such value was determined. The liability for the unexpired portion of the risk for the non-unit liabilities of
Exchange differences: Exchange differences are recognised as income or as linked business and attached riders is the greater of liability calculated using
expenses in the period in which they arise. discounted cash flows and unearned premium reserves.
An unexpired risk reserve and a reserve in respect of claims incurred but not
2.18. Earnings per share reported is held for one year renewable group term insurance.
Basic earnings per share are calculated by dividing the profit or loss after
tax for the year attributable to equity shareholders by the weighted average The unit liability in respect of linked business is the value of the units standing
number of equity shares outstanding during the year. For the purpose of to the credit of policyholders, using the Net Asset Value (`NAV’) prevailing at
calculating diluted earnings per share, the profit or loss after tax for the year the valuation date.
attributable to equity shareholders and the weighted average number of A brief of the assumptions used in actuarial valuation is as below:
shares outstanding during the year are adjusted for the effects of all dilutive a) The interest rates used for valuing the liabilities are in the range of 4.66%
potential equity shares which could have been issued on the conversion of to 6.13% per annum. The interest rates used at March 31, 2017 were in the
all dilutive potential equity shares. range of 3.49% to 6.20% per annum.
Potential equity shares are deemed to be dilutive only if their conversion to b) Mortality rates used are based on the published “Indian Assured Lives
equity shares would decrease the net profit per share from continuing ordinary Mortality (2006 – 2008) Ult.” mortality table for assurances and LIC (a) 96-
operations. Potential dilutive equity shares are deemed to be converted as at 98 table for annuities adjusted to reflect expected experience. Morbidity
the beginning of the period, unless they have been issued at a later date. The rates used are based on CIBT 93 table, adjusted for expected experience,
dilutive potential equity shares are adjusted for the proceeds receivable had or on risk rates supplied by reinsurers.
the shares been actually issued at fair value. Dilutive potential equity shares are
determined independently for each period presented. c) Expenses are provided for at least at the current levels in respect of
renewal expenses, with no allowance for any future improvement but with
2.19. Cash and Cash Equivalents an allowance for any expected worsening.
Cash and cash equivalents for the purpose of Receipts and Payments account d) Per policy renewal expenses are assumed to inflate at 4.38% per annum.
include cash and cheques in hand, bank balances, liquid mutual funds and The expense inflation assumption used at March 31, 2017 was 4.55%.
other investments with original maturity of three months or less which are
e) No allowance is made for expected lapses in the future.
subject to insignificant risk of changes in value.
f) The bonus rates for participating business to be declared in the future is
consistent with the valuation assumptions.
g) The tax rate applicable for valuation at March 31, 2018 is 14.56% p.a.
Certain explicit additional provisions are made, which include the following:
a) Reserves for additional expenses that the Company may have to incur if it
were to close to new business twelve months after the valuation date.
b) Reserves for guarantees available to individual and group insurance
policies.

265
 schedules
forming part of the consolidated financial statements Continued
c) Reserves for cost of non-negative claw back additions. The above unclaimed amount of policyholders does not include ` 229 Lacs
d) Reserves for free look option given to policyholders calculated using a having ageing beyond 120 months, which shall be transferred to Senior
free look cancellation rate of 2.1%. The free look cancellation assumption Citizens’ Welfare Fund (SCWF) on or before March 01, 2019 in accordance
used at March 31, 2017 was 2.2%. with IRDAI Master circular No. IRDA/F&A/CIR/Misc/173/07/2017 on “Unclaimed
Amount of Policyholders” dated July 25, 2017 read with rule 3 (6) of Senior
e) Reserves for lapsed policies eligible for revivals. Citizens’ Welfare Fund Rules, 2016.
3.3. Reconciliation of unclaimed amounts of policyholders 3.5. Direct taxes
Pursuant to IRDAI circular No. IRDA/F&A/CIR/CLD/114/05/2015 dated May 28, The current tax provision is determined in accordance with the provisions
2015 and IRDA/F&A/CIR/CPM/134/07/2015 dated July 24, 2015 on “Handling of of the Income Tax Act, 1961. The provision for current tax for the year
unclaimed amounts pertaining to policyholders”, the Company has created a ended March 31, 2018 is ` 2,198,077 thousand (year ended March 31, 2017:
single segregated fund to manage all the unclaimed monies. The amount in ` 1,815,831 thousand).
such unclaimed fund has been invested in money market instruments and /or
fixed deposit of scheduled banks with effect from April 01, 2016. The provision for current tax includes an amount of ` 1,200,710 thousand
for the year ended March 31, 2018 (year ended March 31, 2017: ` 788,117
The amount in the unclaimed fund has been disclosed in schedule 12 as “Assets thousand) which has been charged on the total surplus of the participating
held for unclaimed amount of policyholders”. Investment income accruing to line of business in Revenue Account, in line with the group’s accounting
such unclaimed fund has been credited to the fund and disclosed as other policy. Further, tax expense amounting to ` 997,367 thousand for the year
income under Linked life segment in the Revenue Account. Such investment ended March 31, 2018 (year ended March 31, 2017: ` 1,027,714 thousand)
income net of fund management charges (‘FMC’) is paid/ accrued as “interest pertaining to other than participating line of business has been charged to
on unclaimed amounts” in schedule 4 “Benefits paid”. Profit & loss account.
Reconciliation of unclaimed amounts of policyholders: Deferred tax asset is recognised on the linked funds for future appropriation to
In accordance with circular IRDA/F&I/CIR/CLD/114/05/2015 issued by the IRDAI the extent that there is virtual certainty supported by convincing evidence that
on May 28, 2015, the details of unclaimed amounts and investment income at sufficient future taxable income will be available against which such deferred
March 31, 2018 is tabulated as below: tax asset can be realized. The deferred tax position and the movement for the
year ended March 31, 2018 is summarised below:
(` in lacs)*
Particulars For the For the (` in ‘000)
year ended year ended Particulars At (Charge)/ Credit At
March 31, 2018 March 31, 2017 April 1, 2017 for the year March 31, 2018
Opening balance 65,904 49,565 Deferred tax assets on:      
Add: Amount transferred to unclaimed fund 233,687 136,713 -  Linked funds for future appropriation 469 (6) 463
Add: Cheques issued out of the unclaimed amount 3,584 1,878 Total 469 (6) 463
but not encashed by the policyholders (stale Deferred tax liability on:
cheques)
Add: Investment income (net of FMC) 4,823 3,906 -  Amortisation of computer software (49) 49 -
and incorporation expenses (net)
Less: Amount paid out of unclaimed fund (226,548) (126,158)
Total (49) 49 -
Less : Transfer to Senior Citizen welfare fund (482) -
Closing balance 80,969 65,904 Deferred tax credit for the year ended March 2018 is ` 43 thousand (Deferred
*Amount disclosed in lacs in accordance with IRDAI circular No. IRDA/F&A/ tax charge for year ended March 31, 2017: ` 136 thousand).
CIR/CLD/114/05/2015 3.6. Operating lease commitments
3.4. Age wise analysis of unclaimed amount of policyholders The Company takes premises, motor vehicles, office equipment’s, computers,
In accordance with circular IRDA/F&I/CIR/CMP/174/11/2010 issued by the servers and modular furniture on operating lease. Certain lease arrangements
IRDAI on November 4, 2010, the age wise analysis of unclaimed amount of the provide for cancellation by either party and also contain a clause for renewal
policyholders at March 31, 2018 is tabulated as below: of the lease agreement. Lease payments on cancellable and non-cancellable
operating lease arrangements are charged to the Revenue account and the
a. Claims settled but not paid to the policyholders/insured due to any Profit and Loss account over the lease term on a straight line basis. The total
reasons except under litigation from the insured/policyholders: operating lease rentals charged for the year ended March 31, 2018 is ` 526,130
At Total Age-wise analysis (` in lacs)*
thousand (year ended March 31, 2017: ` 539,758 thousand).
amount Outstanding period in months Lease rentals pertaining to non-cancellable leases charged to the Revenue
0-6 07-12 13-18 19-24 25-30 31-36 36-120 account and the Profit and Loss account for the year ended March 31, 2018
March 31, 2018 411 411 - - - - - - is ` 32,297 thousand (year ended March 31, 2017: ` 33,184 thousand). The
March 31, 2017 4 4 - - - - - - future minimum lease payments in respect of these non-cancellable leases at
b. Sum due to the policyholders/beneficiaries on maturity or otherwise: the Balance Sheet date are summarised below:

At Total Age-wise analysis (` in lacs)* (` in ‘000)

amount Outstanding period in months Particulars At At
March 31, 2018 March 31, 2017
0-6 07-12 13-18 19-24 25-30 31-36 36-120
Not later than one year 33,518 33,518
March 31, 2018 26,671 16,672 4,293 2,864 750 515 535 1,042
Later than one year but not later than five years 53,071 86,589
March 31, 2017 23,348 14,426 2,142 1,381 872 2,092 292 2,143
Later than five years - -
c. Any excess collection of the premium/tax or any other charges which is
3.7. Assets given on operating lease
refundable to the policyholder / beneficiaries either as terms of conditions
of the policy or as per law or as may be directed by the Authority but not The Company has entered into an agreement in the nature of leave and license
refunded so far: for leasing out the investment property. This is in the nature of operating
lease and lease arrangement contains provisions for renewal. There are no
At Total Age-wise analysis (` in lacs)* restrictions imposed by lease arrangement and the rent is not determined
amount Outstanding period in months based on any contingency. The total lease payments received in respect of
0-6 07-12 13-18 19-24 25-30 31-36 36-120 such lease recognised in Revenue account and Profit and Loss account for the
March 31, 2018 416 363 39 5 6 2 - 1 year ended March 31, 2018 is ` 179,305 thousand (year ended March 31, 2017:
March 31, 2017 776 764 10 2 - - - - ` 66,797 thousand).
d. Cheques issued but not encashed by the policyholder / beneficiaries**

At Total Age-wise analysis (` in lacs)*

amount Outstanding period in months
0-6 07-12 13-18 19-24 25-30 31-36 36-120
March 31, 2018 53,242 8,348 10,886 7,867 2,924 2,496 578 20,143
March 31, 2017 41,352 8,088 6,241 4,184 835 903 1,314 19,787
*Amount disclosed in lacs in accordance with IRDA/F&I/CIR/CMP/174/11/2010
**cheques issued but not encashed by policyholder/beneficiary do not include
cheques which are within the validity period.

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schedules
forming part of the consolidated financial statements Continued
3.8. Details of related parties and transactions with related parties
Related parties and nature of relationship:

Nature of relationship Name of the related party

Holding company ICICI Bank Limited
Substantial interest Prudential Corporation Holdings Limited
Fellow subsidiaries and entities jointly ICICI Securities Limited
controlled by holding company ICICI Securities Inc.
ICICI Securities Holding Inc.
ICICI Venture Funds Management Company Limited
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
ICICI Securities Primary Dealership Limited
ICICI Investment Management Company Limited
ICICI International Limited
ICICI Bank UK PLC.
ICICI Bank Canada
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Trust Limited
ICICI Foundation for Inclusive Growth
Consolidated under AS-21 by holding company ICICI Strategic Investments Fund
Significant influence ICICI Prudential Life Insurance Company Limited Employees’ Group Gratuity Cum Life Insurance Scheme
ICICI Prudential Life Insurance Company Limited Employees’ Provident Fund
ICICI Prudential Life Insurance Company Limited Superannuation Scheme
ICICI Prudential Life insurance Advisors Benefit Trust
Key management Sandeep Bakhshi, Managing Director and CEO
personnel as per AS-18 disclosure Puneet Nanda, Executive Director
Sandeep Batra, Executive Director
Judhajit Das, Chief – Human Resources
Asha Murali, Appointed Actuary

Relatives of Key management personnel as per AS-18 disclosure

Relatives of KMP Sandeep Bakhshi Sandeep Batra Puneet Nanda Asha Murali Judhajit Das
Spouse Mona Bakhshi Deepa Batra Deepti Nanda P A Murali Isheeta Ganguly
Swarn Bakhshi Veena Batra Kul Bhushan Nanda P S Nagaraj Mita Das
Parent
    Asha Nanda
Sameer Bakhshi Vivek Batra Pankaj Nanda Rekha Somayajula Satrajit Das
Brother/ Sister
      Krishna Nagaraj  
Shivam Bakhshi Arushi Batra Rikhil Nanda Rajiv Murali Adarsh Ganguly Das
Children Esha Thakurta Pranav Batra Rishita Nanda   Akaash Ganguly Das
Minal Bakhshi        

The following represents significant transactions between the Company and its related parties:
(` ‘000)
Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/ (Payable)
FY 2018 FY 2017 At At
March 31, 2018 March 31, 2017
ICICI Bank Limited Holding company Premium income 1,060,445 521,860 (75,745) (3,758)
Benefits Paid (184,667) (103,635) (375) -
Interest income on investments 193,183 149,574 91,616 93,464
Recovery of expenses
- Rent, rates and taxes - 866 - -
- Employees’ remuneration and welfare benefits 8 7 8 -
- Recovery of IPO expenses 2,404 509,914 - 635
- Information Technology cost 1,459 1,264 440 1,454
Reimbursement of other expenses
- Legal and Professional Charges (11,866) (11,430) (10,366) (13,062)
- Employees’ remuneration and welfare benefits (1,180) (1,920) - -
- Rent, rates and taxes (543) (2,398) (106) (955)
- Information technology cost (220,371) (170,619) (73,823) (99,656)
Administration support expenses - (5,726,917) - (880,445)
Commission expenses (8,766,983) (3,902,223) (682,279) (63,749)
Bank charges (53,331) (45,959) (20,993) (5,630)
Sale of fixed assets - 1,850 - 194
Purchase of investments (16,353,936) (13,950,900) - -
Sale of investments 6,046,925 4,685,841 - -
Security Deposit outstanding - - 75 121
Outstanding investments - - 2,444,207 2,531,571
Cash & bank balances - - (1,150,539) (2,958,301)
Dividend paid (5,435,935) (3,413,910) - -
ICICI Securities Limited Fellow subsidiary Premium income 5,464 2,362 (79) (244)
Benefits Paid (180) (614) - -
Recovery of expenses
- Rent, rates and taxes 1,937 2,642 - 97
- Information Technology cost 234 326 170 374
Reimbursement of other expenses
- Rents, rates and taxes (376) (89) - (101)
- Employees’ remuneration and welfare benefits (75) - - -
Advertisement & Publicity - (379,990) - (96,669)
Commission expenses (482,593) (333,061) (52,366) (19,246)
Brokerage (30,644) (22,203) (2,235) -
Sale of fixed assets 1,177 - - -
ICICI Venture Funds Fellow subsidiary Premium income 526 523 (730) (749)
Management Company
Limited
ICICI Home Finance Fellow subsidiary Interest income on investments 74,800 3,074 40,781 3,689
Company Limited

267
 schedules
forming part of the consolidated financial statements Continued
(` ‘000)
Name of related party Relation Nature of transaction Transactions for the year Amount recoverable/ (Payable)
FY 2018 FY 2017 At At
March 31, 2018 March 31, 2017
Recovery of expenses
- Rent, rates and taxes 2,410 2,145 - 104
Commission Expenses (11,554) (2,061) (1,048) (73)
Outstanding investments - - 999,252 1,004,932
ICICI Securities Primary Fellow subsidiary Premium income 494 280 (197) (187)
Dealership Limited Benefits Paid - - - -
Interest income on investments 57,125 57,053 30,867 30,867
Purchase of investments (15,838,599) (13,353,705) - -
Sale of investments 5,859,871 9,155,498 - -
Outstanding investments - - 623,696 637,994
ICICI Prudential Asset Fellow subsidiary Premium income 8,874 7,070 (1,387) (883)
Management Company Benefits Paid (3,050) (2,875) (50) -
Limited Reimbursement of other expenses
- Employees’ remuneration and welfare benefits - (320) - -
ICICI Lombard General Fellow subsidiary Premium income 9,250 7,511 (1,525) (799)
Insurance Company Benefits Paid (4,350) (5,288) - -
Limited Claims received 114 2,573 - -
Reimbursement of other expenses
- Rent, rates and taxes (907) (2,177) (366) (54)
- Employees’ remuneration and welfare benefits - (400) - -
Premium Expense (258,894) (117,930) 55,441 75,418
Purchase of investments (4,511,052) (5,711,461) - -
Sale of investments 3,978,445 3,320,963 - -
Security Deposit outstanding - - 242 547
Prudential Corporation Substantial Interest Recovery of expenses
Holdings Limited Travel Cost 95 - - -
Reimbursement of other expenses
- Employees’ remuneration and welfare benefits - - - -
- Agents training, recruitment and incentives (19,351) (19,611) - -
Dividend paid (2,558,416) (1,427,522) - -
ICICI Prudential Life Significant influence Premium income 178,580 194,167 (1,406) (274)
Insurance Company Contribution to trust (191,680) (178,350) - (27,776)
Limited Employees’
Group Gratuity Cum Life
Insurance Scheme
ICICI Prudential Life Significant influence Premium income 9,879 7,632 - -
Insurance Company Contribution to trust (8,086) (6,845) - -
Limited Superannuation
Scheme
ICICI Prudential Life Significant influence Contribution to trust (133,552) (114,772) (35,952) (30,417)
Insurance Company
Limited Employees’
Provident Fund
ICICI Foundation for Entities controlled by
Premium income 315 242 (6) (1)
Inclusive Growth Holding Company Contribution for CSR activity (172,769) (170,263) - -
Key management Key management Premium income 4,011 3,933 - -
personnel personnel Dividend paid (2,665) (1,242) - -
Managerial remuneration (196,055) (221,404) - -
Employee stock options outstanding (numbers) - - 561,500 275,000
Employee stock options exercised (numbers) 35,000 260,000 - -
Key management Relatives of key Premium income 101 95 - -
personnel management personnel Benefits Paid - (2,521) - -
Dividend paid (6) (2) - -
3.9. Segmental reporting
As per the requirements of Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting life insurance business)
Regulations, 2016, the Company has put in place a Board approved policy for allocation of direct expenses and apportionment of indirect expenses of management
amongst various business segments.
Segment wise information of various items as required under AS 17 “Segmental reporting” are given below:
For the year ended March 31, 2018
(` ‘000)
Particulars Segments Shareholders Total
Par Life Par Non Par Non Par Non Par Annuity Health Linked Linked Linked Linked Linked
Pension Variable Variable Non Par Life Pension Health Group Group
Pension Life Pension
Segment revenue 42,597,324 1,717,779 39,432,577 439,257 20,507 5,029,160 319,059 255,162,740 22,688,221 1,763,475 7,341,925 4,909,502 7,469,375 388,890,901
(excluding
contribution from
the Shareholders'
account)
Segment result - 2,953,866 304,677 2,051,884 6,531 729 (752,784) 212,099 4,847,252 2,702,649 347,082 89,654 115,458 6,052,301 18,931,398
Surplus/ Deficit
after tax (net of
contribution from
the Shareholders'
account)
Depreciation/ 50,378 180 30,448 65 1 2,084 2,052 343,759 5,287 739 1,081 686 283 437,043
Amortisation
Significant non- 25,878,589 70,600 28,275,628 41,830 2,270 4,114,254 (114,887) 118,927,565 (27,466,713) 780,167 2,097,175 1,950,211 - 154,556,689
cash expenses*
* comprises of Change in valuation of policy liabilities, Provisions for diminution in the value of investments (Net), Provision for doubtful debts and Bad debts written off
**As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.

268
schedules
forming part of the consolidated financial statements Continued
For the year ended March 31, 2017
(` ‘000)
Particulars Segments Shareholders Total
Par Life Par Non Par Non Par Non Par Annuity Health Linked Life Linked Linked Linked
Pension Variable Variable Non Par Pension Health Group Life
Pension
Segment revenue 33,289,631 1,319,144 35,062,657 933,740 145,109 4,279,132 148,055 242,509,399 36,701,314 2,254,220 15,269,983 6,956,086 378,868,471
(excluding
contribution from
the Shareholders'
account)
Segment result - 1,331,315 380,443 2,327,262 (16,205) (1,815) 1,061,310 136,709 2,020,913 2,911,347 375,828 193,040 5,519,189 16,239,336
Surplus/ Deficit
after tax (net of
contribution from
the Shareholders'
account)
Depreciation/ 72,492 306 47,235 258 29 1,238 283 443,552 8,573 1,057 3,141 494 578,658
Amortisation
Significant non- 20,225,562 42,349 25,255,580 923,530 136,843 1,704,326 (32,392) 131,347,559 (10,020,908) 1,274,174 4,244,731 - 175,101,354
cash expenses*
* comprises of Change in valuation of policy liabilities, Provisions for diminution in the value of investments (Net), Provision for doubtful debts and Bad debts written off
**As required by IRDAI circular IRDA/F&I/REG/CIR/208/10/2016 dated October 25, 2016, Linked Group segment has been bifurcated into Linked Group Life and Linked Group Pension from FY2017-18 onwards.

3.10 Employee benefits (` ‘000)

Particulars Year ended Year ended
Provision for staff benefits as per AS 15 (Revised): March 31, 2018 March 31, 2017
Asset allocation:  
(a) Defined contribution plans
Debentures and Bonds 51.49% 51.83%
Superannuation Fixed deposits 0.10% 0.71%
Government securities 23.66% 21.80%
The amount recognised as an expense during the year ended March 31, Equity shares 15.87% 15.78%
2018 is ` 91,661 thousand (year ended March 31, 2017: ` 51,520 thousand). Money market instruments 1.08% 0.00%
Others 7.80% 9.88%
National Pension Scheme Total 100.00% 100.0%
The company has contributed ` 15,284 thousand for the year ended March Assumptions:
31, 2018 (March 31, 2017: ` 13,851 thousand) to NPS for employees who Discount rate 7.35% 6.80%
had opted for the scheme. Salary escalation rate* 8.50% 8.50%
Estimated rate of return on plan assets # 7.50% 7.50%
(b) Defined benefit plans Expected future contribution from employer 120,000 120,000
for next year
Gratuity *Salary escalation rate considered in valuation take into account impact of
inflation, seniority, promotion and other factors impacting future salary cost.
(` ‘000)
# Estimated rate of return on plan assets is based on the expected average
Particulars Year ended Year ended
March 31, 2018 March 31, 2017 long-term rate of return on investments of the Fund during the estimated term
Reconciliation of benefit obligations and of the obligations.
planned assets for the period:
Present value of the defined benefit 1,099,789 1,007,930 Experience adjustments on gratuity provisioning
obligations at period end (A)
Fair value of plan assets at period end (B) 1,076,895 980,154 (` ‘000)
Net asset/(liability) recognized in Balance (22,893) (27,776) Particulars Period ended
Sheet at end of the year (B-A) March March March March March
Total net cost recognized as employee 101,213 178,350 31, 2018 31, 2017 31, 2016 31, 2015 31, 2014
remuneration in Revenue / Profit and loss Defined benefit 1,099,789 1,007,930 787,608 656,645 593,293
account obligation
Change in defined benefit obligation: Plan assets 1,076,895 980,154 747,780 621,030 554,816
Opening obligations at April 1 1,007,930 787,608 Surplus/(deficit) (22,893) (27,776) (39,828) (35,615) (38,477)
Service cost 107,300 88,310 Experience
Interest cost 69,557 60,147 adjustments
Actuarial (gain)/loss (5,544) 137,735 - on plan liabilities 26,665 56,420 60,235 (5,301) 26,710
Past service costs - - - on plan assets (986) 55,484 (30,130) 61,489 4,319
Liability assumed on transfer of employees. - -
Benefits paid (79,454) (65,870) Provident fund
Present value of the defined benefit 1,099,789 1,007,930 Provident fund benefits are aimed at providing security to staff members
obligations at period end (A) and their dependents on retirement, disability or death. Both employee
Change in Plan Asset: and the company contribute an equal percentage of the basic salary, a part
Opening plan assets, at fair value at April 1 980,154 747,780
of which is towards Government administered pension fund and balance
Expected return on plan assets 71,087 52,357
Actuarial gain/(loss) (986) 55,484 portion is contributed to the fund administered by trustees. The provident
Contributions 106,095 190,403 fund is managed by ICICI Prudential Life Insurance Company Employees’
Assets acquired on acquisition/(settled on - - Provident Fund Trust.
divestiture)
Benefits paid (79,454) (65,870)
The minimum rate at which the annual interest is payable by the trust
Fair value of plan assets at period end (B) 1,076,895 980,154 to members is prescribed by the Government. The Company has an
Cost for the period: obligation to make good the shortfall, if any, between the Government
Service cost 107,300 88,310 prescribed rate and actual return earned by the provident fund.
Interest cost 69,557 60,147
Expected return on plan assets (71,087) (52,357) (` ‘000)
Actuarial (gain)/loss (4,558) 82,251 Particulars Year ended Year ended
Past service cost - - March 31, 2018 March 31, 2017
Losses /(gains) on acquisition/divestiture - - Reconciliation of benefit obligations and
Total net cost recognised as employee 101,213 178,350 planned assets for the period:
remuneration in Revenue / Profit and loss Present value of the defined benefit 3,379,146 2,983,343
account obligations at period end (A)
Investment details of plan assets: Fair value of plan assets at period end (B) (3,379,146) (2,983,343)
Plan assets invested in insurer managed 100.00% 100.00% Net asset/(liability) recognised in Balance - -
funds Sheet at end of the year (B-A)
Fund earning rate 5.91% 11.16%

269
 schedules
forming part of the consolidated financial statements Continued

(` ‘000) Compensated absence: The amount recognised as an expense during the

Particulars Year ended Year ended year ended March 31, 2018 is ` 80,893 thousand (year ended March 31,
March 31, 2018 March 31, 2017 2017: ` 89,508 thousand).
Total net cost recognised as “Employee 122,122 105,149 Liability for compensated absence for employees is determined based on
Benefit Expense" in Revenue / Profit and loss
account
actuarial valuation which has been carried out using the projected accrued
Change in defined benefit obligation: benefit method which is same as the projected unit credit method in
Opening defined benefit obligations 2,983,343 2,655,621 respect of past service. The assumptions used for valuation are:
Current service cost 122,122 105,149
Particulars  At At
Interest cost 202,746 202,282 March 31, 2018 March 31, 2017
Actuarial (gain)/loss 74,729 53,775 Discount rate 7.35% 6.80%
Employees contribution 263,595 227,226 Salary escalation rate 8.50% 8.50%
Liability assumed on Acquisition / (Settled (19,565) (27,593)
on Divestiture) Leave accumulation policy of the Company is given below:
Benefits paid (247,824) (233,117)
Criteria Level 1 to 6 Level 7 &
Closing defined benefit obligation 3,379,146 2,983,343 above
Change in Fair Value of Assets: Employment upto 5 years NA 60 days
Opening value of plan assets 2,983,343 2,655,621 Employment more than 5 years 60 days 90 days
Expected return on plan assets 262,192 235,627
Actuarial gain/(loss) 15,283 20,430 While computing liability, 2% leave availment has been assumed for each
Contributions – Employer 122,122 105,149 subsequent year following the valuation date.
Contributions – Employee 263,595 227,226
Assets acquired on acquisition / (Distributed (19,565) (27,593)
3.11. Employee Stock Option Scheme (“ESOS”)
on divestiture) The Company Employees Stock Option Scheme (2005) (“ESOS 2005”) has six
Benefits paid (247,824) (233,117) tranches namely Founder, 2004-05, 2005-06, 2006-07, Founder II and 2007-08.
Closing value of plan assets 3,379,146 2,983,343 ESOS 2005 permits the grant of share options up to 3% of the issued capital
Cost for the period: of Company. The Board of Directors have approved the amendment of ESOS
Service cost 122,122 105,149 2005 (ESOS 2005 (Revised)). As per the ESOS 2005 (Revised), the aggregate
Interest cost 202,746 202,282 number of Shares issued or issuable since March 31, 2016 pursuant to the
Expected return on plan assets (262,192) (235,627) exercise of any Options granted to the Eligible Employees issued pursuant to
Actuarial (gain)/loss 59,446 33,345 the Scheme or any other stock option scheme of the Company, shall not exceed
Total net cost recognised as employee 122,122 105,149 a figure equal to 2.64% of the number of shares issued as on March 31, 2016.
“Employee benefit expense” in Revenue /
Profit and loss account The maximum number of options that can be granted to any eligible employee
Investment details of plan assets: is restricted to 0.1% of the issued shares of the Company at the time of grant
Government of India Securities 54% 46% of options. The Exercise Price shall be determined by the Board Nomination
Corporate Bonds 36% 46% & Remuneration Committee in concurrence with the Board of Directors of the
Equity shares of Listed Companies 0% 2% Company on the date the Options are granted and shall be reflected in the
Others 10% 6% award confirmation. These changes (ESOS 2005 (Revised)) were approved by
Total 100% 100% the shareholders of the Company in the Annual General Meeting held on July
17, 2017. Further the company granted options in FY2018 under ESOS 2005
Experience adjustments (Revised) on July 25, 2017
(` ‘000) The Company follows intrinsic value method and hence there was no charge in
Particulars Period ended the Revenue Account and Profit and Loss account on account of modification
March March March March March 31, of the Scheme.
31, 2018 31, 2017 31, 2016 31, 2015 2014
Defined benefit 3,379,146 2,983,343 2,655,621 2,354,199 2,163,657 The salient features of tranches issued under ESOS 2005 are as stated below:
obligation
Plan assets 3,379,146 2,983,343 2,655,621 2,354,199 2,163,657 Date of Founder 2004-05 2005-06 2006-07 2007-08 2017-18
Grant Founder II
Surplus/(deficit) - - - - -
March April April April April July
Experience 28, 2005 25, 2005 26, 2006 24, 2007 25, 2008 25, 2017
adjustments:
Number 2,662,500 3,782,400 4,633,250 6,534,675 6,101,000 656,300
- on plan 74,729 53,775 37,592 8,487 41,092 of options (2006-07)
liabilities granted 470,000
-  on plan 15,283 20,430 7,835 4,431 20,136 (Founder II)
assets Maximum Tenth Tenth
The assumptions used in actuarially valuing the defined benefit obligations term anniversary anniversary
of interest rate guarantee are as follows: options Thirteenth anniversary of the of the date from the
granted  date of grant of options of grant of date of
 Particulars At At options vesting of
March 31, 2018 March 31, 2017 options
Discount rate for the term of the obligation 7.35% 6.80% Graded Vesting Period
Average historic yield on the investment 8.95% 8.99% 1st Year 50% of 30% of
25% of options granted options
portfolio option
granted granted
Discount rate for the remaining term to 8.05% 7.20%
maturity of the investment portfolio 2nd Year 30% of
Expected investment return 8.25% 8.59% 25% of options granted options
Guaranteed rate of return 8.55% 8.65% granted
3rd Year 40% of
(c) Other long term benefits 25% of options granted options
granted
Long term incentive scheme:The amount recognised as an expense
during the year ended March 31, 2018 is ` 143,577 thousand (year ended 4th Year - 25% of options granted -
March 31, 2017: ` 133,358 thousand). Mode of
Equity
settlement
Liability for the scheme is determined based on actuarial valuation which
has been carried out using the projected accrued benefit method which is Exercise price of all the options outstanding for all years/quarter for Founder
same as the projected unit credit method in respect of past service. The scheme, 2004-05 scheme, 2005-06 scheme, 2006-07 scheme, Founder II,
assumptions used for valuation are: 2007-08 & 2017-18 scheme is ` 30, ` 42, ` 70, ` 130, ` 130, ` 400 and ` 468.6
respectively.
Particulars At At
March 31, 2018 March 31, 2017
Discount rate 6.80% 6.50%

270
schedules
forming part of the consolidated financial statements Continued
A summary of status of Company’s Employee Stock Option Scheme in terms 3.13. Earnings per share
of options granted, forfeited and exercised is given below:
(` ‘000)
Particulars Year ended Year ended Sr. Particulars March March
March 31, 2018 March 31, 2017 No. 31, 2018 31, 2017
Number Weighted Number of Weighted I Net profit as per profit and loss account avail- 16,191,653 16,816,612
of options average options average able for equity shareholders for both basic and
exercise exercise diluted earnings per equity share of ` 10 each
price price II Weighted average number of equity shares for
Outstanding at the beginning of 2,398,838 352.49 5,999,175 233.72 earnings per equity share
the year (a) For basic earnings per equity share 1,435,429,351 1,434,273,461
Add: Granted during the period 656,300 468.60 - NA (b) For diluted earnings per equity share
Less: Forfeited/lapsed during the (82,650) 410.92 (578,575) 386.80 Number of equity shares for basic earnings per 1,435,429,351 1,434,273,461
period equity share as per (II) (a)
Less: Exercised during the period (151,600) 261.08 (3,021,762) 108.33 Add: Weighted average outstanding employee
Outstanding at the end of the period 2,820,888 382.70 2,398,838 352.49 stock options deemed to be issued for no 256,567 979,023
consideration 1,435,685,918 1,435,252,484
Exercisable at the end of the year 2,193,488* 358.13 2,398,838 352.49 Weighted number of equity shares for diluted
*Options outstanding at the end of the period less options unvested at the end earnings per equity share
of the period. III Earnings per equity share
Basic (in `) 11.28 11.72
Nil options are vested during the year ended March 31, 2018 and ` 39,580 Diluted (in `) 11.28 11.72
thousand was realised by exercise of options during the year ended March 31,
2018 (March 31, 2017 : ` 327,337 thousand). During the year ended March 31, 3.14. Commitments
2018 the Company has recognized a compensation cost of ` nil (year ended Commitments made and outstanding (net of advances) for Company’s
March 31, 2017: ` nil) as the intrinsic value of the options. investment in Real estate (Investment property) is ` nil (March 31, 2017 ` nil
thousand).
Had the company followed fair value method based on binomial tree model
valuing its options compensation cost for the year ended would have been Estimated amount of contracts remaining to be executed on fixed assets to
higher by ` 39,667 thousand (March 31, 2017: ` nil) and the proforma profit the extent not provided for (net of advance) is ` 346,179 thousand (March 31,
after tax would have been ` 16,151,986 thousand (March 31, 2017: ` 16,816,612 2017: ` 112,616 thousand)
thousand). On a proforma basis, the company’s basic and diluted earnings per There are no loan commitments made by the Company (March 31, 2017 ` nil).
share would have been ` 11.25 (March 31, 2017: ` 11.72) and ` 11.25 (March
31, 2017: ` 11.72) respectively. 3.15. Conversion of Investment Property to Fixed Assets.
During the year ended March 31, 2018, the Company has converted certain
Fair value methodology
investment properties held in the Participating and Shareholders’ funds to fixed
The assumptions considered in the pricing model for the ESOPs granted assets for self-use. These investment properties have been converted to fixed
during the year ended March 31, 2018 were: assets based on the approval and stipulations of Insurance Regulatory and
Development Authority of India.
Particulars March 31, 2018 Basis
Risk-free interest rate 6.68% to 6.96% G-Sec yield at grant date for tenure Consequently, based on the valuation reports obtained from independent
equal to the expected term of ESOPs valuers, investment properties held in the Participating fund at a cost of
Expected life of the 6 to 8 years Simplified method (average of ` 1,077,435 thousand have been transferred to the Shareholders’ fund as fixed
options minimum and maximum life of options) assets at a fair value of ` 1,132,099 thousand thereby resulting in a gain of
Dividend yield 0.96% Based on recent dividend declared
` 54,664 thousand in Participating fund. Consequently, the revaluation reserve
Expected volatility 15.82% to 16.39% Based on historical volatility
determined on the basis of Nifty 50
amounting to ` 19,549 thousand has been reversed.
The Investment property held in the Shareholders’ fund amounting to ` 716,468
The weighted average price of options exercised during the year ended March
thousand has been reclassified from investment property to fixed assets at the
31, 2018 is ` 261.80 (year ended March 31, 2016: ` 108.3).
cost of ` 703,632 thousand and the revaluation reserve amounting to ` 12,836
The weighted average remaining contractual life of options outstanding at the thousand has been reversed.
end of the period is as follows:
The above fixed assets are depreciated as per the accounting policy.
Exercise price range At March 31, 2018 At March 31, 2017
(in `) Options Weighted Options Weighted 3.16. Valuation of Investment property
outstanding average outstanding average In accordance with the IRDA Regulations, 2002 (Preparation of Financial
remaining remaining Statements and Auditors’ Report of Insurance Companies), the Company’s
contractual life contractual life investment property has been revalued. The Company has revalued all its
(in years) (in years)
investment properties held for more than one year and market value for such
130 340,113 2.1 422,113 3.1
properties is based on valuation performed by an independent valuer at March
400 1,853,375 0.1 1,976,725 1.1
468.6 188,220 10.3 - -
31, 2018. The opinion on market value by the independent valuer, is prepared
468.6 188,220 11.3 - - in accordance with the “The RICS Valuation Standards” published by the Royal
468.6 250,960 12.3 - - Institution of Chartered Surveyors (“RICS”), subject to variation to meet local
Total 2,820,888 2.8 2,398,838 1.4 established law, custom, practice and market conditions. The methods used in
valuation of property includes “Direct comparable approach”. The real estate
ICICI Bank Limited (“Holding company”) has granted options to certain investment property is accordingly valued at ` 4,666,000 thousand at March
employees of the Company. Holding company follows an intrinsic value 31, 2018 (March 31, 2017: ` 6,338,958 thousand). The historical cost of the
method and has recognized a cost of ` nil for the year ended March 31, 2018, property is ` 3,836,532 thousand (March 31, 2017: ` 5,617,599 thousand). Refer
for the options granted to employees of the Company (year ended March 31, note 3.15 on conversion of investment property to fixed assets.
2017: ` nil).
3.17. Impairment of investment assets
3.12. Foreign exchange gain/loss
In accordance with the impairment policy of the Company, diminution in
Transactions in foreign currencies are recorded at exchange rate prevailing on the value of investments has been recognised under the head “Provision for
the date of transaction. The exchange difference between the rate prevailing diminution in the value of investments (Net)” in the Revenue account and the
on the date of transaction and on the date of settlement is recognised as Profit and Loss account. The total impairment loss recognised for the year
income or expense, as the case may be. The net foreign exchange loss debited ended March 31, 2018 is ` 50,872 thousand (year ended March 31, 2017:
to Revenue account for the year ended March 31, 2018 is ` 1,367 thousand ` 65,125 thousand).
(year ended March 31, 2017: ` 3,221 thousand).

271
 schedules
forming part of the consolidated financial statements Continued
3.18. Encumbrances of assets (` ‘000)
The assets of the Company are free from all encumbrances except to the Particulars At At
extent assets or monies are required to be deposited as margin contributions March 31, 2018 March 31, 2017
for investment trade obligations of the Company or as mandated by the court, - Fixed deposit placed with Corporation 2,000 1,000
as detailed below: Bank as security towards guarantee issued
by the bank on behalf of the company in
Assets deposited with National Securities Clearing Corporation Limited
a.  favour of PFRDA
(NSCCL) and Indian Clearing Corporation Limited (ICCL) - Fixed deposit placed with Corporation 2,500 2,500
Bank towards margin requirement for
Fixed deposit of ` 1,000,000 thousand (March 31, 2017: ` 1,000,000 equity trade settlement pertaining to
thousand) and ` 100,000 thousand (March 31, 2017: ` 100,000 thousand) Scheme E Tier I and II issued in favour of
has been deposited with NSCCL and ICCL respectively towards margin National Securities Clearing Corporation
requirement for equity trade settlement. Limited

Terms of pledge: Physical custody of the fixed deposits are with respective 3.19. Securities Lending and Borrowing Scheme (SLB)
clearing houses, however the income accrued on these deposits shall Equity shares transferred under SLB continue to be recognised on the Balance
be passed on to the Company on the maturity of the deposits. These Sheet as the Company retains all the associated risks and rewards of these
deposits can be invoked by the clearing houses in case of any default by securities.
the Company in settlement of equity transactions. The value of equity shares lent by the Company under SLB and outstanding at
b. Assets encumbered with Clearing Corporation of India Limited (CCIL) March 31, 2018 is ` 1,044,030 thousand (March 31, 2017: ` nil).
(` ‘000) 3.20. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
Particulars At March 31, 2018 At March 31, 2017 There are no payments made to or dues outstanding to Micro, Small and
Market Amortised Market Amortised Medium Enterprises beyond the timelines prescribed by the MSMED Act
value cost value cost (March 31, 2017: ` nil).
Pledged under securities segment
Government securities 3,746,922 3,793,836 2,067,500 1,959,467 3.21. Dividend
Cash 204,200 204,200 70,000 70,000 Interim dividend appropriation for the year ended March 31, 2018 is ` 5,874,239
Pledged under Collateralized Borrowing and Lending Obligation segment (CBLO) thousand (year ended March 31, 2017: ` 6,645,630 thousand) including
Government securities 212,789 207,055 218,000 207,120 dividend distribution tax of ` 993,586 thousand (year ended March 31, 2017:
Cash 100 100 100 100 ` 1,124,058 thousand).
Pledged for Default Fund under securities segment The Board of Directors have also proposed a final dividend of ` 4,737,146
Government securities 59,400 58,126 60,660 58,015 thousand (year ended March 31, 2017: ` 5,023,715 thousand). The dividend
Cash - - - - distribution tax on the same amounts to ` 973,734 thousand (year ended March
Pledged for Default Fund under CBLO segment 31, 2017: ` 1,022,710 thousand)
Government securities 19,800 19,375 20,220 19,338 Final dividend shown in previous year of ` 1,142 thousand and dividend
Cash - - - - distribution tax of ` 233 thousand on the same pertains to dividend on 543,828
equity shares for year ended March 31, 2016 and allotted between date of
Terms of pledge: Physical custody of the securities is maintained with Board Meeting i.e. April 26, 2016 and Record Date i.e. June 22, 2016.
the CCIL, however interest accrued on these securities is received by
the Company. The Company is not entitled to any interest income on Unclaimed dividend of ` 4,768 thousand at March 31, 2018 (at March 31, 2017:
the money deposited with the CCIL towards margin requirements. These ` 697 thousand) represents dividend paid but not claimed by shareholders, and
deposits, both securities and cash, can be invoked by CCIL in case of any are represented by a bank balance of an equivalent amount.
default by the Company in settlement of trades in Securities and CBLO
3.22. Pending litigations
segment.
The Company’s pending litigations comprise of claims against the Company
c. Other encumbrances primarily by the customers and proceedings pending with Tax authorities.
The Company has placed fixed deposits with banks for issuing bank The Company has reviewed all its pending litigations and proceedings and
guarantee/ based on the directive from the Court as per below details: has adequately provided for where provisions are required and disclosed
the contingent liabilities where applicable, in its financial statements. The
(` ‘000) Company does not expect the outcome of these proceedings to have a
Particulars At At material adverse effect on its financial results at March 31, 2018. Refer note
March 31, 2018 March 31, 2017 3.1 for details on contingent liabilities. In respect of litigations, where the
Fixed deposit placed with bank based on - 606 management assessment of a financial outflow is probable, the Company has
the directive from the Hon. Patna High made a provision of ` 301,244 thousand at March 31, 2018 (At March 31, 2017:
Court in case of one death claim settlement
pertaining to a deceased policyholder ` 169,015 thousand)
Bank guarantees issued: 3.23. Long term contracts
- in favour of Sub-Divisional Judicial 5,000 5,000 The Company has a process whereby periodically all long term contracts
Magistrate, Patna with respect to a criminal are assessed for material foreseeable losses. At the year end, the Company
case filed against a fraudulent policyholder has reviewed and ensured that adequate provision as required under any
- towards purchase of postage on policy 2,000 2,000 law / accounting standards for material foreseeable losses on such long
welcome kit document term contracts including derivative contracts has been made in the financial
- in favour of UIDAI deposit towards 2,500 - statements.
enabling Aadhaar Authentication services
- in lieu of earnest money deposit towards - 229 For insurance contracts, actuarial valuation of liabilities for policies is done
tender of Indian Oil Corp Refineries Trust by the Appointed Actuary of the Company. The methods and assumptions
for administration of EDLI scheme used in valuation of liabilities are in accordance with the regulations issued
- in favour of Dr. Balabhai Nanavati Hospital 500 500 by the Insurance Regulatory and Development Authority of India (“IRDAI”)
to provide service with respect to health and actuarial practice standards and guidance notes issued by the Institute of
claims settlements
Actuaries of India.
- in favour of National Stock Exchange of 575,679 575,679
India Limited as part of listing obligation 3.24. Corporate Social Responsibility
- in favour of Cleartrip Private Limited for - 100
timely performance of obligations as per
The amount required to be spent by the Company on Corporate Social
the terms of the agreement Responsibility (CSR) related activities during the year ended March 31, 2018
- Fixed deposit placed with State Bank of 1,000 1,000 was ` 230,288 thousand (year ended March 31, 2017: ` 217,391 thousand).
India as security towards guarantee issued
by the bank on behalf of the company in
favour of PFRDA

272
schedules
forming part of the consolidated financial statements Continued
The following table sets forth, for the periods indicated, the amount spent by 3.26. Specified bank notes
the Company on CSR related activities. Being an insurance company, Schedule III of the Companies Act, 2013 is not
applicable and hence the disclosure requirements for the details of Specified
(` ‘000)
Particulars Year ended March 31, 2018 Year ended March 31, 2017
Bank Notes (SBNs) as envisaged in Notification G.S.R. 308(E) dated March 30,
In cash Yet to be Total In cash Yet to be Total 2017 issued by the Ministry of Corporate Affairs (MCA) is not provided.
paid in paid in However for consolidation purpose since the disclosure is applicable to the
cash cash subsidiary company, details of Specified Bank Notes (SBN) held and transacted
Construction/ - - - - - - during the period November 8, 2016 to December 30, 2016 for the subsidiary
acquisition of
any asset is as below.
On purposes 222,884 7,639 230,523 194,029 24,813 218,842 This disclosure is not applicable for year ended March 31, 2018.
other than
above Particulars SBN Other Total
denomination
Amounts of related party transactions with ICICI Foundation for Inclusive notes
Growth pertaining to CSR related activities for year ended March 31, 2018 was Closing cash in hand as on November 8, 2016 NIL NIL NIL
` 172,769 thousand (year ended March 31, 2017: ` 170,263 thousand) (+) Permitted receipts NIL NIL NIL
The following table sets forth, for the periods indicated, the details of movement (-) Permitted payments NIL NIL NIL
of amounts yet to be paid for CSR related activities. (-) Amount deposited in Banks NIL NIL NIL
Closing cash in hand as on December 30, 2016 NIL NIL NIL
(` ‘000)
Particulars March 31, 2018 March 31, 2017 3.27. Previous year comparatives
Opening balance 24,813 25,424 Previous period’s figures have been regrouped and reclassified wherever
Expense during the year 230,523 218,842 necessary to conform to current period’s presentation.
Paid during the year (247,697) (219,453)
Closing balance 7,639 24,813 Sr. Regrouped to Regrouped from Amount Reason
No. (in `
3.25. Loans and advances to subsidiaries, associates and related entities ‘000)
Pursuant to Securities and Exchange Board of India (Listing obligations and 1 Schedule 3: Schedule 3: The
disclosure requirements) Regulations, 2015, disclosures pertaining to loans Others- Business Agents training, reclassification
and advances given to subsidiaries, associates and related entities are given conferences and recruitment and 394,192 has been done
meetings incentives for appropriate
below: presentation.
2 Schedule 3: Schedule 3:
There are no loans and advances given to subsidiaries, associates and firms/ Employees’ Agents training,
companies in which directors are interested expect for advances which are in remuneration and recruitment and 44,049
the normal course of business but not in the nature of loans (year ended March welfare benefits incentives
31, 2018: ` nil)
There are no investments by the loanee in the shares of the Company.

As per our report of even date attached.

For B S R & Co. LLP For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
ICAI Firm Reg. No. 101248W/W-100022 ICAI Firm Reg. No. 001076N / N500013

Venkataramanan Vishwanath Khushroo B. Panthaky Chanda Kochhar V. Sridar Sandeep Bakhshi

Partner Partner Chairperson Director Managing Director and CEO
Membership No. 113156 Membership No. 42423 DIN:00043617 DIN:02241339 DIN:00109206

Sandeep Batra Satyan Jambunathan
Executive Director Chief Financial Officer
DIN:03620913

Place : Mumbai Asha Murali Vyoma Manek
Date : April 24, 2018 Appointed Actuary Company Secretary

273
 ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT
COMPANY LIMITED
9TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Auditors Registered & Corporate Office
Sandeep Bakhshi, Chairman (DIN: 00109206) Chaturvedi & Co. 1089, Appasaheb Marathe Marg
Vinod Kumar Dhall (DIN: 02591373) Chartered Accountants Prabhadevi
M. N. Gopinath (DIN: 00396196) Firm Registration No. 302137E Mumbai - 400 025
Uday Chitale (DIN: 00043268)
Puneet Nanda (DIN: 02578795) Meghana Baji
Sandeep Batra (DIN: 03620913) Chief Executive Officer

directors’ report
to the members,

Your Directors have pleasure in presenting the Ninth Annual Report of ICICI Income on shareholders’ fund increased from ` 22.8 mn in FY2017 to ` 23.6 mn in FY
Prudential Pension Funds Management Company Limited (the Company) along with 2018 primarily on account of increase in interest income on debentures and realised
the audited statement of accounts for the year ended March 31, 2018. gain on sale of mutual fund units.

OPERATIONS REVIEW & OUTLOOK Key Regulatory Changes

Industry in FY2018 Pension Fund Regulatory and Development Authority (PFRDA) has issued a Request
for Proposal dated October 17, 2016. The same expired without appointment of
The industry AUM as at March 31, 2018 was ` 2,345.79 billion (FY2017: ` 1,745.61
PFMs. The temporary extension of appointment initiated by the interim PFRDA dated
billion). This largely comprises funds from government sector of ` 2,009.43 billion
June 24, 2016 therefore continues till fresh selection is completed under Pension
and corporate sector (central government pattern) of ` 148.46 billion. The AUM from
Fund Regulatory and Development Authority (Pension Fund) Regulations 2015.
private sector (Schemes E, C, G & A), Atal Pension Yojana and NPS lite segments
was `119.66 billion, ` 38.18 billion and ` 30.06 billion respectively, a growth of 69%, Dividend and Reserves
103% and 14% over FY2017. The financial operations of the Company have resulted in a loss after tax of `6.6
Company in FY2018 million. In view of the loss incurred, the Directors are unable to recommend any
dividend.
The subscribers’ funds managed by the Company increased from ` 14,414.8 million
at March 31, 2017 to ` 23,255.1 million at March 31, 2018, an increase of 61.3% The Company has not carried forward any amount to its Reserves during the
during the year. financial year under review.
The details of the subscribers’ funds are as follows: Statement in respect of adequacy of internal financial controls with reference to
(` million) the Financial Statements
The Company has established a governance framework and a control environment,
Asset class March 31, % to total March 31, % to total
commensurate with the size, scale and complexity of its operations. The corporate
2017 2018
governance framework of the Company is based on an effective independent
Equity (E) 5,837.5 40% 9,465.1 41% Board, separation of Board’s supervisory role from the executive management and
Credit Risk Bearing Fixed 4,018.4 28% 6,299.9 27% constitution of Board Committees, generally comprising a majority of independent
Income Instruments (C) / non-executive directors and chaired by independent/ non-executive directors to
Government Securities (G) 4,555.9 32% 7,476.5 32% oversee critical areas.
Alternate Asset Class (A) 3.0 0% 13.6 0% The internal financial controls with reference to financial statements of the Company
Total 14,414.8 100% 23,255.1 100% comprises multiple levels of oversight as follows:

The performance for financial year ended March 31, 2018 is summarized as follows: The Company follows a reporting and review framework comprising quarterly review
of financials. The financials prepared are reviewed by Board Risk Management and
(` million) Audit Committee.
Particulars FY2017 FY2018 The Company has automated processes and authority matrix based workflow to
Investment management fees 1.0 1.8 compute/ account investment management fee, investment income and operating
Interest on income tax refund* 0.0 0.0 expenses. System and process controls have been built on various sub processes
Total operating revenue 1.0 1.9 and activities to ensure completeness and accuracy.
Personnel expenses 17.4 18.7 No significant observations have been made or are outstanding against the Company
Other operating expenses 10.7 10.8 by auditors or regulators.
Brokerage expense 1.6 2.7 The Company has a documented risk control matrix against which the controls
Total operating expenses 29.7 32.2 pertaining to financial reporting are tested. All the controls are in place and
functioning.
Operating loss before tax (28.7) (30.3)
Income on shareholders’ fund 22.8 23.6 The Company also has got internal audit conducted by an external Chartered
Accountant firm and no observations have been made by them.
Profit/(loss) before tax (5.9) (6.7)
Tax 0.2 0.1 Orders, if any, passed by Regulator or Courts or Tribunals
Profit/(loss) after tax (5.7) (6.6) No orders were passed by the regulators or courts or tribunals impacting the going
concern status and the Company’s operations.
* Interest on income tax refund in FY 2017: ` 6,526
* Interest on income tax refund in FY 2018: ` 15,600 Subsidiary, joint venture or associate companies
Operating performance did not improve with the growth in assets managed since The Company continues to be the wholly owned subsidiary of ICICI Prudential Life
while the investment management fees increased from ` 1.0 mn to ` 1.8 mn, Insurance Company Limited.
personnel expenses increased from ` 17.4 mn to ` 18.7 mn and brokerage expense
increased from ` 1.6 mn to ` 2.7 mn. The PFM operating loss increased from ` 28.7 Key Managerial Person
mn in FY2017 to ` 30.3 mn in FY2018. Changes in the composition of Key Managerial Personnel (KMP) as per Section 203
of the Companies Act, 2013 during the year:

274
 directors’ report
Name of the KMP Appointment/ Designation With effect from * Ms. Shweta Nayak, Company Secretary was appointed as the Compliance
Resignation/ Officer of the Company in place of Ms. Geeta Makhijani w.e.f May 1, 2017
Cessation of tenure
Recommendations by the Audit Committee
Mr. Harvinder Jaspal Resignation Chief Financial Close of business
Officer hours on August During the FY2018, there were no instances where the recommendations made
31, 2017 by the Audit Committee were not accepted by the Board.
Ms. Meghana Baji Cessation of tenure Manager & CEO April 21, 2017 II. Board Nomination and Remuneration Committee
Appointment Chief Executive The Board Nomination & Remuneration Committee was constituted as per the
Officer requirements of Companies Act, 2013 and following are the terms of reference:
Mr. Dhiraj Chugha Appointment Chief Financial October 23, 2017
Officer Terms of reference:
Policy for Directors and Senior management position as prescribed under Section • To identify persons who are qualified to become directors and who may be
178 of the Companies Act 2013 (Act). appointed in senior management in accordance with the criteria laid down,
recommend to the Board their appointment and removal and shall carry out
The Company has put in place a Policy for appointment of a Director and officials
evaluation of every director’s performance.
who may be appointed in senior management of the Company. The said policy is
guided by the set of principles and objectives as envisaged under section 178 of the • T
 o formulate the criteria for determining qualifications, positive attributes
Act, which inter alia include principles pertaining to determining the qualifications, and independence of a director and recommend to the Board a policy,
positive attributes, integrity and independence of Director etc. relating to the remuneration for the directors, key managerial personnel and
other employees.
BOARD OF DIRECTORS
• T
 o ensure that the level and composition of remuneration is reasonable and
The Board comprises of six Directors; three non-executive Directors and three sufficient to attract, retain and motivate directors of the quality required to
Independent Directors. The Board is responsible for overall corporate strategy and run the company successfully.
other responsibilities as laid down by the PFRDA. The Independent Directors are
eminent personalities with significant expertise in the fields of finance, law, and • T
 o ensure that relationship of remuneration to performance is clear and
strategy. None of the Directors are related to any other Director or employee of the meets appropriate performance benchmarks.
Company. • T
 o ensure that remuneration to directors, key managerial personnel and
The Company has received declarations from all the Independent Directors of the senior management involves a balance between fixed and incentive pay
Company confirming that they meet the criteria of independence as prescribed reflecting short and long term performance objectives appropriate to the
under Section 149(6) the Act. working of the company and its goals.
There were four Meetings of the Board held during FY2018 on April 25, 2017, July 25, Composition
2017, October 23, 2017 and January 17, 2018. The maximum interval between any The Board Nomination and Remuneration Committee comprises of two
two meetings did not exceed 120 days. independent Director. There were two Meetings of the Committee held during
The names of the Directors and their attendance at Board Meetings during the year FY2018 on April 25, 2017 and October 23, 2017
are set out in the following table: The details of the composition of the Committee and attendance at its Meetings
are set out in the following table:
Name of Director Number of meetings attended
Mr. Sandeep Bakhshi, Chairman 4/4 Name of the member Number of meetings attended
Mr. Vinod Kumar Dhall 4/4
Mr. Vinod Kumar Dhall, Chairman 2/2
Mr. M. N. Gopinath 3/4
Mr. M. N. Gopinath 2/2
Mr. Uday Chitale 4/4
Mr. Puneet Nanda 4/4 Mr. Sandeep Batra 2/2
Mr. Sandeep Batra 4/4 Meeting of Independent Directors
As per provisions of the Companies Act, 2013 and the Articles of Association of the There was one Independent Directors Meeting held during FY2018 on April
Company, Mr. Puneet Nanda (DIN: 02578795) will retire by rotation at the ensuing 25, 2017. The names of the Independent Directors and their attendance at
Annual General Meeting and is eligible for re-appointment. Mr. Puneet Nanda has Independent Directors Meeting during the year are set out in the following
offered himself for re-appointment. table:

Board Committees Name of the member Number of meetings attended

I. Board Risk Management & Audit Committee Mr. Vinod Kumar Dhall 1/1
Mr. Uday Chitale 1/1
Terms of reference:
Mr. M. N. Gopinath 1/1
Directing and overseeing the audit plans, audited and un-audited financial
results, findings of the internal and statutory auditors, risk management, Sitting fees paid to independent Directors during the financial year ended
disaster recovery and business contingency plans, recommend appointment of March 31, 2018:
auditors and such other responsibilities as may be prescribed by the Companies
Name of the Director Amount (in `)
Act, 2013 and PFRDA.
Mr. Vinod Kumar Dhall 2,00,000
Composition Mr. M. N. Gopinath 1,00,000
The Board Risk Management & Audit Committee comprises of two independent Mr. Uday Chitale 1,60,000
Director and at March 31, 2018 was chaired by Mr. Vinod Kumar Dhall.
Evaluation of Board, Committees and Directors
There were four Meetings of the Committee held during FY2018 on April 25,
2017, July 25, 2017, October 23, 2017 and January 17, 2018. The Company has devised a policy for performance evaluation of the individual
directors, Board and its Committees, which includes criteria for performance
The details of the composition of the Committee and attendance at its Meetings evaluation.
are set out in the following table:
Accordingly, the evaluation of the Directors and Board was undertaken through
Name of the member Number of meetings attended circulation of questionnaires which assessed the performance of the Board on
Mr. Vinod Kumar Dhall, Chairman 4/4 select parameters related to roles, responsibilities and obligations of the Board
Mr. Uday Chitale 4/4 and functioning of the Committees including assessing the quality, quantity and
Mr. Sandeep Batra 4/4 timeliness of flow of information between the company management and the Board,
Ms. Meghana Baji^ 4/4 that is necessary for the Board to effectively and reasonably perform their duties. The
evaluation criteria for the Directors was based on their participation, contribution and
Mr. Beram Gazdar^ 4/4
offering guidance to and understanding of the areas which were relevant to them in
Ms. Geeta Makhijani* 1/1
their capacity as members of the Board. The evaluation of the Board, Committees
Ms. Shweta Nayak* 3/3 and Directors for FY2018 was completed through an online survey portal.
^As per Investment Management Agreement signed with National Pension
System Trust and the PFRDA (Pension Fund) Regulations, 2015, Risk
Management Committee shall also have Chief Executive Officer, Chief
Investment Officer or Fund Manager and the Risk or Compliance Officer.

275
directors’ report
forming part of the accounts
General Body Meetings
The details of the last three Annual General Meetings (AGM) are given below:
Financial Year Day, Date Start Venue
ended time
Sixth AGM Thursday, June 25, 9.00 a.m. 1089, Appasaheb Marathe Marg,
2015 Prabhadevi, Mumbai 400025
Seventh AGM Friday, June 24, 9.30 a.m. 1089, Appasaheb Marathe Marg,
2016 Prabhadevi, Mumbai 400025
Eighth AGM Friday, July 21, 4:00 p.m. 1089, Appasaheb Marathe Marg,
2017 Prabhadevi, Mumbai 400025
No special resolution was passed by the members during the last three Annual
General Meeting.
General Shareholder Information
General Body Meeting Day, Date & Time Venue
Ninth AGM June 26, 2018 9:00 a.m 1089, Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400025
PARTICULARS OF REMUNERATION TO EMPLOYEES
The provisions of Section 197 of the Companies Act, 2013, read with Rule 5 of
the Companies (Appointment & Remuneration) Rules, 2014, as amended, are not
applicable as the aggregate remuneration payable do not exceed the specified limits.
SHARE CAPITAL
There was no change in the Company’s paid up equity share capital during the
year, which stood at ` 29 Crores as on March 31, 2018. The entire paid-up capital
of the Company is held by ICICI Prudential Life Insurance Company Limited and its
nominees.
PUBLIC DEPOSITS
During the year under review, the Company has not accepted any deposits under
Section 73 of the Companies Act, 2013.
AUDITORS
Statutory Auditor
The guidance note issued by Pension Fund Regulatory & Development Authority
(PFRDA) prescribes the criteria for appointment of an individual or a firm to be an
auditor of the company. One of the qualification criteria prescribed by PFRDA is
that the auditor must not be associated with either the Pension Fund Management
Company (PFM) or Schemes managed by the PFM or its Sponsor or any other PFM
or their Schemes. Consequently, the audit firms engaged with any of the above
entities are ineligible for appointment.
M/s. Khimji Kunverji and Associates, Chartered Accountants, were appointed as the
Auditor of the Company at the 8th Annual General Meeting (AGM) of the Company
held on July 21, 2017. Subsequently the Company was informed by them, about
acceptance and confirmation of appointment as statutory auditor of some other
Pension Fund Management Company by them before their appointment by the
Company at its AGM. This was in contravention to the appointment criteria laid down
by PFRDA thus disqualifying them and causing a casual vacancy in the office of the
auditor.
In view of the above, the Board, in accordance with Section 139 (8) of the Companies
Act, 2013 and rules made thereunder, appointed M/s Chaturvedi & Co. as the
Statutory Auditors of the Company to hold office with effect from September 1, 2017
till the conclusion of the 11th Annual General Meeting of the Company.
Subsequently, the Pension Funds Regulatory and Development Authority of India
(PFRDA) has vide its circular dated January 11, 2018 amended the Guidance Note for
Appointment of Auditors- 2012. Accordingly, the term of the appointment of auditors
has been amended to read as “as prescribed under section 139 of the Companies
Act, 2013” i.e. 5 years from the date of the appointment w.e.f. financial year 2017-18.
In view of the above, it is proposed to appoint M/s. Chaturvedi & Co., Chartered
Accountants as the Statutory Auditor of the Company at the ensuing Annual General
Meeting for a term of 5 years (inclusive of the term already served).
Secretarial Auditor
As a part of good governance practice, the Company voluntarily undertakes an
audit of the Secretarial records and had engaged the services of Bhatt & Associates
Company Secretaries LLP were re-appointed for FY2017-18 by the Board of Directors
as the Secretarial Auditor of the Company pursuant to Section 179 and other
applicable provisions of the Act and rules made thereunder.
Auditor’s Report
There are no qualification, reservation or adverse remark or disclaimer made by the
auditors in their report.
Risk Management Policy
The Company has a Board approved policy on Risk Management. The Policy sets
out the risk strategy and appetite of the Company and its objectives in respect
276
Continued
of risk identification, measurement, monitoring and control with regards to the
shareholder’s fund. The policy is reviewed periodically.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT 9 is annexed
herewith as Annexure A.
Particulars of Loans, Guarantees and Investments
During the year under review, the Company has not given any loans and guarantees
which attract the provisions of Section 186 of the Act. The particulars of investments
made during the year are provided in Notes to Accounts.
Particulars of contracts or arrangements with related parties
The Company has a Board approved policy on dealing with related party transactions
on an arm’s length basis. The Company shares personnel and infrastructure with
its holding company i.e. ICICI Prudential Life Insurance Company Limited. The
Company has a Board approved transfer pricing policy for pricing these transactions
at arm’s length and all the transactions between the Company and ICICI Prudential
Life Insurance Company Limited have been done in conformity with the same.
The particulars of material contract or arrangements entered into by the Company
with related parties referred to in sub-section (1) of section 188 of the Companies
Act, 2013 including certain arm’s length transactions under third proviso thereto is
disclosed in Form No. AOC -2 is appended as Annexure B.
Conservation of Energy and Technology absorption
In view of the nature of business activity of the Company, the information relating
to the conservation of energy and technology absorption, as required under Section
134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)
Rules, 2014 is not required to be given.
Foreign exchange earnings and outgo
Details of foreign exchange earnings and outgo required under above Rules are as
under:
Particulars FY2017 FY2018
Foreign exchange earnings and outgo
- Earnings - -
- Outgo - -
Material events from close of financial year
There have been no material changes and commitments, affecting the financial
position of the Company, which have occurred between the end of the financial year
of the Company to which the Balance Sheet relates and the date of this report.
DIRECTORS’ RESPONSIBILITY STATEMENT
In accordance with the requirements of Section 134(3)(c) of the Companies Act,
2013, the Board of Directors confirm:
(a) in the preparation of the annual accounts, the applicable accounting standards
had been followed along with proper explanation relating to material departures;
the directors had selected such accounting policies and applied them
(b) 
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit and loss of the Company for that
period;
(c) 
the directors had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this Act for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) 
the directors had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and
operating effectively.
ACKNOWLEDGEMENTS
The Directors are grateful to the PFRDA, National Pension System Trust (NPS Trust)
and Government of India for their continued co-operation, support and advice.
The Directors would also like to take this opportunity to express sincere thanks to its
valued customers for their continued patronage.
The Directors express their gratitude for the valuable advice and guidance received
from time to time, from the auditors and the statutory authorities. The Directors
express their appreciation to all employees. The Directors also wish to express their
gratitude to ICICI Prudential Life Insurance Company Limited for their continued trust
and support.
For and on behalf of the Board
Sandeep Bakhshi
Date: May 4, 2018 Chairman
Place: Mumbai DIN: 00109206
directors’ report
forming part of the accounts ANNEXURE A

Form No. MGT-9 II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

EXTRACT OF ANNUAL RETURN All the business activities contributing 10 % or more of the total turnover of the
as on the financial year ended on March 31, 2018 company shall be stated:-
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies Sl. Name and Description of NIC Code of the % to total turnover of
(Management and Administration) Rules, 2014] No. main products / services Product/ service the company
1. Pension Funds Management 6530 100
I. REGISTRATION AND OTHER DETAILS:

CIN U66000MH2009PLC191935
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –
Registration Date 22/04/2009
Name of the Company ICICI Prudential Pension Funds Management Sl. NAME AND CIN/GLN HOLDING/ % of Applicable
Company Limited No. ADDRESS OF THE SUBSIDIARY/ shares Section
Category / Sub-Category Company Limited by Shares COMPANY ASSOCIATE held
of the Company 1. ICICI Prudential U66010MH- Holding 100% 2 (46)
Address of the Registered 1089, Appasaheb Marathe Marg, Prabhadevi, Life Insurance 2000PLC127837
office and contact detailsMumbai - 400025. Tel No.:4039 1600 Company Limited
Website: www.iciciprupensionfund.com
1089, Appasaheb
Whether listed company No Marathe Marg,
Name, Address and Contact 3i Infotech Limited Prabhadevi,
details of Registrar and International Infotech Park Mumbai - 400025.
Transfer Agent, if any Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai 400 703
Maharashtra, India
Tel No. : +91-22-6792 8000

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding.

SI. Category of shareholders No. of Shares held at the beginning of the year- No. of Shares held at the end of the year-March % change during
No. April 1, 2017 31, 2018 the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoters
(1) Indian - - - - - - - - -
(a) Individual - 6* 6* 0 - 6* 6* 0 Nil
(b) Central Govt - - - - - - - - -
(c) State Govt - - - - - - - - -
(d) Bodies Corporate - - - - - - - - -
(e) Banks/FIs 28,999,994 - 28,999,994 100 28,999,994 - 28,999,994 100 0
(f) Any other - - - - - - -
Sub-total (A) (1) 28,999,994 6* 29,000,000 100 28,999,994 6* 29,000,000 100 0
(2) Foreign - - - - - - - - -
(a) NRIs - Individuals - - - - - - - - -
(b) Other - Individuals - - - - - - - - -
(a) Bodies Corporate - - - - - - - - -
(b) Banks/FIs - - -
(c) Any other - - - - - - - - -
Sub-total (A) (2) - - - - - - - - -
Total Shareholding of Promoter (A) = (A) (1) 28,999,994 6* 29,000,000 100 28,999,994 6* 29,000,000 100 0
+ (A) (2)
B. Public Shareholding
(1) Institutions
(a) Mutual Funds - - - - - - - - -
(b) Banks/FIs - - - - - - - - -
(c) Central Govt - - - - - - - - -
(d) State Govt - - - - - - - - -
(e) Venture Capital Funds - - - - - - - - -
(f) Insurance Companies - - - - - - - - -
(g) FIIs - - - - - - - - -
(h) Foreign Venture Capital Funds - - - - - - - - -
Sub-total (B) (1) NIL NIL
2. Non-Institutional
(a) Bodies Corp.
(i) Indian - - - - - - - - -
(ii) Overseas - - - - - - - - -
(b) Individuals - - - - - - - - -
(i) Individual shareholders holding nominal share - - - - - - - - -
capital upto ` 1 lakh
(ii) Individual shareholders holding nominal share - - - - - - - - -
capital in excess of ` 1 lakh
(c) Others - - - - - - - - -
Sub-total (B) (2) - - - - - - - - -
Total Public Shareholding (B) = (B) (1) + (B) (2) - - - - - - - - -
B. Shares held by Custodian for GDRs & ADRs - - - - - - - - -
Grand Total (A+B+C) 28,999,994 6* 29,000,000 100 28,999,994 6* 29,000,000 100 0
*Shares held as nominee shareholders on behalf of ICICI Prudential Life Insurance Company Limited

277
directors’ report
forming part of the accounts Continued
(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the beginning of the year- Shareholding at the end of the year- March 31, 2018
No. April 1, 2017
No. of Shares % of total Shares % of Shares No. of Shares % of total % of Shares % change in
of the Company Pledged/ Shares of the Pledged/ shareholding
encumbered to Company encumbered to during the year
total shares total shares
ICICI Prudential Life Insurance Company 29,000,000 100 Nil 29,000,000 100 Nil Nil
Limited

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

No Change

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

Sl. Shareholding at the beginning of the year Date wise Increase / Decrease in Shareholding Cumulative Shareholding during the year
No. during the year specifying the reasons for increase (at the end of the year)
No. of shares % of total shares of the / decrease (e.g. allotment/Transfer/bonus/sweat No. of shares % of total shares of the
company equity etc) company
1. Nil

(v) Shareholding of Directors and Key Managerial Personnel

Sl Shareholding at the beginning of the year Date wise Increase / Decrease in Shareholding Cumulative Shareholding during the year
No. during the year specifying the reasons for increase (at the end of the year)
No. of shares % of total shares of the / decrease (e.g. allotment/Transfer/bonus/sweat No. of shares % of total shares of the
company equity etc) company
1. 2* 0.00 Nil 2* 0.00
*Shares held as nominee shareholder on behalf of ICICI Prudential Life Insurance Company Limited

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment

Secured Loans Unsecured Loans Deposits Total Indebtedness

excluding deposits
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid NIL NIL NIL NIL

iii) Interest accrued but not

Total (i+ii+iii)
Change in Indebtedness during the financial year
Addition NIL NIL NIL NIL
Reduction
Net Change
Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid NIL NIL NIL NIL

iii) Interest accrued but not

Total (i+ii+iii) NIL NIL NIL NIL

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager::

(`’000)
SI. Particulars of Remuneration Name of MD/WTD/Manager
No. Meghana Baji, Manager
1 Gross salary
a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 -
b) Value of perquisites u/s 17(2) Income-tax Act, 1961 -
c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 -
2. Stock Options -
3. Sweat Equity -
4. Commission
- as % of profit -
- others, specify.
5. Others, please specify* -
Total (A) -
* Include – Tax-free Medical, Tax-free LTA, Provident Fund, Superannuation and National Pension Scheme
(Amounts rounded off to nearest decimal

278
directors’ report
forming part of the accounts ANNEXURE A

B. Remuneration to other Directors:

(In `)
Sl. Particulars of Name of Directors Total
No. Remuneration Vinod Kumar Dhall M. N. Gopinath Uday Chitale Amount
1. Independent Directors
• Fee for attending board & committee meetings 2,00,000 1,00,000 160,000 4,60,000
• Commission - - - -
• Others, please specify
Total (1) 2,00,000 1,00,000 160,000 4,60,000
2. Others Non-Executive Directors
• Fee for attending board committee meetings - - - -
• Commission
• Others, please specify
Total (2) - - - -
Total (B) = (1+2) 2,00,000 1,00,000 160,000 4,60,000
C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD
(` ‘000 )
Sl. Particulars of Remuneration Key Managerial Personnel Total Amount
No. Meghana Baji (ceased to Harvinder Jaspal, Chief Shweta Nayak, Dhiraj Chugha,
be Manager & CEO and Financial Officer^ (From Company Secretary Chief Financial
appointed as CEO w.e.f. 1st April to August 31, Officer^ (w.e.f
April 21, 2017) 2017) October 23, 2017)
1. Gross salary
a) Salary as per provisions contained in
section 17(1) of the Income-tax Act, 1961 6,058 394 692 95 7,239
b) Value of perquisites u/s 17(2) Income-tax
Act, 1961 45 7 0 1 53
c) Profits in lieu of salary under section 17(3) - - - - -
Income-tax Act, 1961
2. Stock Option* 2,785 - - - 2,785
3. Sweat Equity - - - - -
4. Commission
- as % of profit - - - - -
- Others, specify…
5. Others, please specify** 508 21 38 8 575
Total 9,396 422 730 104 10,652

* Perquisite value of stock options exercised of the holding Company. Additionally, the KMP’s based on entitlements are granted options pursuant to the holding
Company’s Employees Stock Option Scheme.
** Include – Tax-free Medical, Tax-free LTA, Provident Fund, Superannuation and National Pension Scheme
^5% of total remuneration borne by the Company.
(Amounts rounded off to nearest decimal)

VIII. PENALITIES / PUNISHMENT / COMPOUNDING OF OFFFENCES

Type Sections of the Brief Description Details of Penalty/Punishment/ Authority [RD/ Appeal made,
Companies Act Compounding fees imposed NCLT/COURT] if any
A. COMPANY
Penalty
Punishment NIL
Compounding
B. DIRECTORS
Penalty
Punishment NIL
Compounding
C.OTHER OFFICERS IN DEFAULT
Penalty
Punishment NIL
Compounding

ANNEXURE B
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
The Company has a framework on mechanism of taking approvals for all transactions with related parties which was placed in Board Risk Management & Audit Committee Meeting
on January 15, 2015. The transactions between the Company and its related parties, during the year ended March 31, 2018, were based on the principles of arm’s length.

1. Details of contracts or arrangements or transactions not at arm’s length basis:

There are no such transactions

2. Details of material contracts or arrangement or transactions at arm’s length basis

The details of material related party transactions at arm’s length principles for the year ended March 31, 2018 on an aggregate basis is given below:
(` million)
SI. Name of the Nature of Nature of Duration of Salient term of FY2018
No. related party relationship contracts/ transactions contracts contracts/transactions
1. ICICI Prudential Life Holding Compensation/ reimbursement of expenses 1.  Deputed personnel cost and reimbursement of expenses - at actuals 26.0
Insurance Company Company towards infrastructure sharing, deputation 2. Use of office space - at market rates
Limited of employees and other expenses 3. Use of infrastructure and utilities - at actuals

279
independent auditors’ report
to the Members of ICICI Prudential Pension Fund Management Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of ICICI Prudential Pension
Funds Management Company Limited (“the Company”), which comprise the Balance
Sheet as at March 31, 2018, the Statement of Profit and Loss, Cash Flow Statement
for the year then ended and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these
financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the applicable Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets
of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with the Standards on Auditing specified
under Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence, on a test basis,
about the amounts and the disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant
to the Company’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by Management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company as at March
31, 2018;
b) in the case of the Statement of Profit and Loss, of the “loss” for the year ended
on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
annexure-A
to the Independent Auditors’ Report
The annexure referred to in our Independent Auditor’s Report to the members of
ICICI Prudential Pension Funds Management Company Limited for the year ended
March 31, 2018, we report that:
1. (a) 
The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during
the year and no material discrepancies were noticed on such verification. In
our opinion, the frequency of verification of the fixed assets is reasonable
having regard to the size of the Company and the nature of its assets.
2. The activities of the Company and the nature of its business do not involve the
use of inventory. Accordingly, paragraph 3 (ii) of the Order is not applicable.
3. According to the information and explanations given to us, the Company
has neither granted nor taken any loans, secured or unsecured to/ from
companies, firms, limited liability partnerships or other parties covered in
the register maintained under section 189 of the Companies Act, 2013. In
280
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”)
issued by the Central Government of India in terms of sub-section (11) of the
section 143 of the Act, (hereinafter referred to as the “Order”) and on the basis
of such checks of the books of accounts and records of the Company as we
considered appropriate and according to the information and explanations
given to us, we give in the Annexure-A hereto, a statement on the matters
specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We have inquired into the matters specified under section 143(1) and based on
the information and explanations given to us, there is no matter to be reported
under this section.
3.
As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule
7 of the Companies (Accounts) Rules, 2014.
e) In our opinion and based on the information and explanations given to us,
there are no financial transactions or matters which have any adverse effect
on the functioning of the company.
f) On the basis of the written representations received from the directors as
on 31st March, 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2018 from being appointed as a
director in terms of Section 164 (2) of the Act.
g) There is no qualification, reservation or adverse remark relating to the
maintenance of accounts and other matters connected therewith.
h) With respect to the adequacy of the internal financial control over financial
reporting of the Company and the operating effectiveness of such controls,
refer to our separate report in Annexure-B.
i) With respect to the other matters to be included in the Auditor’s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the
explanations given to us:
i.  The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
iii.  There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company. The question
of delay in transferring such sums does not arise.
For CHATURVEDI & CO.
Chartered Accountants
(Firm Registration No. 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: April 23, 2018
view of the foregoing, the provisions of clause 3 (iii) (a), (b), (c) of the said
Order are not applicable.
4. The Company has complied with the provisions of Section 185 and 186 of
the Companies Act, 2013 in respect of investments and has not provided any
loans, guarantees, and security as per provisions of Section 185 and 186 of the
Companies Act, 2013.
5. During the year, the Company has not accepted any deposits from the public
within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the
rules framed thereunder as also the directives issued by Reserve Bank of India.
In view of the foregoing, the provisions of clause 3 (v) of the said Order are not
applicable.
According to the information and explanations given to us, the Central
6. 
Government has not prescribed the maintenance of cost records under sub-
section (1) of section 148 of the Act.
annexure to the auditors’ report
7. In respect of statutory dues:
(a) According to the information and explanations given to us, the Company
is generally regular in depositing undisputed statutory dues including
Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service
Tax, Goods and Services Tax (GST) and other material statutory dues
wherever applicable, with the appropriate authorities.
(b) According to the information and explanation given to us, there are no
cases of non-deposit of disputed Income Tax, Sales Tax, Service Tax, Goods
and Services Tax (GST) with the appropriate authority.
8. The Company has not borrowed any amounts from Banks, Financial Institutions
or by issue of debentures. Accordingly, the provisions of clause 3 (viii) of the
said Order are not applicable.
9. As per information given to us, no money was raised by way of initial public
offer or further public offer (including debt instruments) nor have any fresh term
loans been taken by the company during the year. Accordingly, the provisions
of clause (ix) of the said Order are not applicable.
10. During the course of our examination of the books of accounts and records
of the Company, carried out by us in accordance with the generally accepted
auditing practices in India, we have neither come across any instance of fraud
on the Company by its officers or employees, noticed or reported during the
year, nor have we been informed of such case by the management.
11. According to the information and explanation given to us and based on the
records and documents produced before us, the provisions of section 197
read with Schedule V to the Companies Act, 2013 were not applicable to the
company during the year.
annexure-B
to the Independent Auditor’s Report
Report on the Internal Financial Controls under clause (i) of sub-section 3 of
section 143 of the Companies Act, 2013 (“The Act”)
To the members of ICICI Prudential Pension Funds Management Company Limited
We have audited the internal financial controls over financial reporting of ICICI
Prudential Pension Funds Management Company Limited (“the Company”), as of
March 31, 2018, in conjunction with our audit of the standalone financial statements
of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The company’s Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation, and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to the Company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the “Guidance Note”) and the Standards on auditing as specified
under section 143 (10) of the Companies Act, 2013, to the extent applicable to an
audit of internal financial controls both applicable to an audit of Internal Financial
Controls and both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial control system over financial reporting and their
operating effectiveness. Our audit of internal financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing
the risk that material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting.
12. The Company is not a Nidhi Company and in view of the foregoing, the question
of reporting on clause 3 (xii) of the said Order does not arise.
13. According to the information and explanations given to us, transactions with
related parties are in compliance with section 177 and 188 of Companies Act,
2013 and the details have been disclosed in the Financial Statements as required
by the applicable accounting standards.
14. According to the information and explanation given to us, the Company has not
made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year.
15. 
According to the information and explanation given to us and the books
of accounts verified by us, the Company has not entered into any non-cash
transactions with directors or persons connected with him.
16. As per the information and explanations given to us, the company is not required
to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For CHATURVEDI & CO.
Chartered Accountants
(Firm Registration No. 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: April 23, 2018
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations
of management and directors of company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the company’s assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also projections of any evaluation of the internal financial controls over financial
reporting to the future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For CHATURVEDI & CO.
Chartered Accountants
(Firm Registration No. 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: April 23, 2018
281
balance sheet statement of profit & loss
at March 31, 2018 for the year ended March 31, 2018

Note (in `) (in `)

Particulars No. March 31, 2018 March 31, 2017 Note Year ended Year ended
EQUITY AND LIABILITIES Particulars No. March 31, 2018 March 31, 2017
Shareholders’ funds Revenue from operations
Share capital 3.1 290,000,000 290,000,000
Investment management fees 3.13 1,842,789 997,437
Reserves and surplus 3.2 (26,730,922) (20,125,287)
Other income
263,269,078 269,874,713
Non-current liabilities Interest on fixed deposits 17,766,430 17,774,098

Deferred tax liabilities (net) 3.3 - 49,456 Interest on non-convertible 5,049,863 4,689,869
debentures
Current liabilities
Other current liabilities 3.4 9,815,445 9,116,404 Interest on income tax refund 15,600 6,526
Total 273,084,523 279,040,573 Gain on sale of investments 817,702 376,193
ASSETS
Misc Income - -
Non-current assets
Total revenue (A) 25,492,384 23,844,123
Fixed assets 3.5 - 216,396
Tangible assets Expenses

Gross Block 351,664 351,664 Employee benefits expense 3.14 18,655,848 17,446,952
Accumulated Depreciation (351,664) (302,852) Other expenses & provisions 3.15 13,275,231 11,870,696
Net Block - 48,812
Depreciation and amortisation 3.5 216,396 399,385
Intangible assets expense
Gross Block 4,660,901 4,660,901
Total expenses (B) 32,147,475 29,717,033
Accumulated Depreciation (4,660,901) (4,493,317)
Profit/(Loss) before tax (A-B) (6,655,091) (5,872,910)
Net Block - 167,584
Non-current investments 3.6 200,000,000 50,000,000 Tax expense

Other non-current assets 3.7 22,522,681 19,753,568 Current tax 3.20 - -

Current assets Deferred tax charge/(credit) 3.3 (49,456) (97,295)
Current investments 3.8 42,544,939 9,737,267
Excess tax provision of earlier years - (84,064)
Trade receivables 3.9 578,696 327,232
Profit/(Loss) for the period (6,605,635) (5,691,551)
Cash and bank balances 3.10 4,196,654 161,223,878
Short-term loans and advances 3.11 - 78,720 Earnings/(losses) per equity share:

Other current assets 3.12 3,241,553 37,703,512 Basic and diluted earnings/(losses) 3.16 (0.23) (0.21)
per equity share (`)
50,561,842 209,070,609
Total 273,084,523 279,040,573 Refer accompanying significant accounting policies and other explanatory
Refer accompanying significant accounting policies and other explanatory information
information

The notes referred to above form an integral part of the financial statements.

As per our report of even date attached

For Chaturvedi & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 302137E

S.N. Chaturvedi Sandeep Bakhshi Sandeep Batra

Partner Chairman Director
Membership No. 040479 DIN: 00109206 DIN: 03620913

Place: Mumbai Meghana Baji Dhiraj Chugha Shweta Nayak

Date: April 23, 2018 Chief Executive Officer Chief Financial Officer Company Secretary
M. No.: ACS 44318

282
cash flow statement
for the year ended March 31, 2018

(in `)
Particulars Year ended Year ended
March 31, 2018 March 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Management fees received 1,727,077 840,763
Expenses paid (31,473,389) (27,793,837)
(Payment)/Refund of income tax - net 259,950 97,624
Interest on income tax refund 15,600 6,526
Net cash used in operating activities ( A ) (29,470,762) (26,848,924)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments 171,918,431 29,080,000
Purchase of investments (353,908,401) (40,475,740)
Maturity proceeds of fixed deposit 163,720,914 13,445,542
Placement of fixed deposit (4,500,000) -
Interest on fixed deposit 47,878,994 202,103
Interest on NCD 4,733,600 4,695,000
Net cash from investing activities ( B ) 29,843,538 6,946,905
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of share capital - 20,000,000
Net cash used in financing activities ( C ) - 20,000,000
Net increase in cash and cash equivalents (A+B+C) 372,776 97,981
Cash and cash equivalents at the beginning of the year 323,878 225,897
Cash and cash equivalents at the end of the period 696,654 323,878
Notes to the cash flow statement:
Cash and cash equivalents at the end of the period 696,654 323,878
Other bank balances 3,500,000 160,900,000
Cash and bank balances at the end of the period 4,196,654 161,223,878
Components of cash and cash equivalents:
Balance in current account 696,654 323,878

The notes referred to above form an integral part of the financial statements.

As per our report of even date attached

For Chaturvedi & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 302137E

S.N. Chaturvedi Sandeep Bakhshi Sandeep Batra

Partner Chairman Director
Membership No. 040479 DIN: 00109206 DIN: 03620913

Place: Mumbai Meghana Baji Dhiraj Chugha Shweta Nayak

Date: April 23, 2018 Chief Executive Officer Chief Financial Officer Company Secretary
M. No.: ACS 44318

283
significant accounting policies and other
explanatory information
1 Corporate information
ICICI Prudential Pension Funds Management Company Limited (‘the Company’)
is a wholly owned subsidiary of ICICI Prudential Life Insurance Company
Limited (‘the Sponsor’), incorporated on April 22, 2009 as a company under the
Companies Act, 1956 (‘the Act’). The Company is licensed by the Pension Funds
Regulatory and Development Authority (‘PFRDA’) for acting as a Pension Fund
Manager for the management of the pension funds under the National Pension
System. The license is in force at March 31, 2018.
2 Statement of accounting policies
2.1 Basis of preparation
 The accompanying financial statements are prepared and presented under
the historical cost convention, unless otherwise stated, and on accrual basis
of accounting, in accordance with accounting principles generally accepted
in India, in compliance with the Accounting Standards (‘AS’) notified under
section 133 of the Companies Act, 2013, read together with paragraph 7 of
the Companies (Accounts) Rules 2014. Accounting policies applied have been
consistent with previous year except where different treatment is required as
per new pronouncements made by the regulatory authorities.

The management evaluates all recently issued or revised accounting
pronouncements on an ongoing basis.
2.2 Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires that the Company’s management makes
estimates and assumptions that affect the reported amount of assets, liabilities,
revenues and expenses and disclosure relating to contingent liabilities as on
the date of the financial statements. The estimates and assumptions used
in the accompanying financial statements are based upon management’s
evaluation of the relevant facts and circumstances as on the date of the financial
statements. Actual results could differ from those estimates. Any revision to
accounting estimates is recognised prospectively.
2.3 Revenue recognition
2.3.1 Investment management fees
Investment management fee is recognised on an accrual basis in accordance
with the terms of contract between the Company and the National Pension
System Trust, established by the PFRDA.
2.3.2 Income earned on investments
Interest income on investments is recognised on accrual basis. Premium or
discount on debt securities is amortised or accreted respectively over the
holding/maturity period on a straight-line basis. Dividend income is recognised
when the right to receive dividend is established.
Profit or loss on sale/redemption of debt securities is the difference between the
sale consideration net of expenses and the weighted average amortised cost as
on the date of sale.
Profit or loss on sale of equity shares/mutual fund units is the difference
between the sale consideration net of expenses and the book cost computed
on weighted average basis as on the date of sale.
2.4 Investments
Investments that are readily realisable and intended to be held for not more than
a year from the Balance Sheet date are classified as current investments. All other
investments are classified as non-current investments. Current investments are
carried at lower of cost or fair value determined on an individual security basis.
Non-current investments are carried at cost. Provision for diminution in value is
made to recognise other than temporary decline in the value of investments.
2.5 Fixed assets and Depreciation/Amortisation
Tangible assets
Fixed assets are stated at acquisition cost less accumulated depreciation. Cost
includes the purchase price and any cost directly attributable to bring the asset
to its working condition for its intended use. Subsequent expenditure incurred
on fixed assets is expensed out except where such expenditure increases the
future benefits from the existing assets beyond its previously assessed standard
of performance. Depreciation is provided using Straight-Line Method (‘SLM’)
prorated from the date of being put to use, upto the date of sale, based on
estimated useful life. Assets costing upto ` 5,000 are fully depreciated in the
year of acquisition.
Asset Useful Life
Office equipments 5 years
Intangible assets
Intangible assets comprising software are stated at cost less amortisation.
Significant expenditure on improvements to software are capitalised when
it is probable that such expenditure will enable the asset to generate future
economic benefits in excess of its originally assessed standards of performance
and such expenditure can be measured and attributed to the asset reliably.
284
Software expenses are amortised using SLM over a period of 4 years from the
date of being put to use.
2.6 Impairment of assets
 Management periodically assesses, using external and internal sources,
whether there is any indication that an asset may be impaired. If any such
indication exists, an estimate of the recoverable amount of the asset unit is
made. Impairment occurs where the carrying value of the asset exceeds the
recoverable amount. Recoverable amount is higher of an asset’s net selling
price and its value in use. Value in use is the present value of estimated
future cash flows expected to arise from the continuing use of the asset and
its eventual disposal. If at the Balance Sheet date there is an indication that a
previously assessed impairment loss no longer exists, the recoverable amount
is reassessed and the asset is reflected at the recoverable amount, subject to a
maximum of depreciable historical cost.
2.7 Income taxes
Direct taxes
Tax expense comprises current and deferred tax. Current income tax is measured
as the amount expected to be paid to the tax authorities in accordance with
the Income Tax Act, 1961. Deferred income taxes reflect the impact of current
year timing differences between taxable income and accounting income for the
period and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates enacted or substantively
enacted at the Balance Sheet date. Deferred tax assets are recognised only
to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised;
however, where there is unabsorbed depreciation or carried forward loss under
taxation law, deferred tax assets are recognised only if there is a virtual certainty
supported by convincing evidence of realisation of such assets.
The carrying amount of deferred tax assets are reviewed at each Balance Sheet
date. The Company writes down the carrying amount of a deferred tax asset to
the extent that it is no longer reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available against which
deferred tax asset can be realised. Any such write down is reversed to the
extent that it becomes reasonably certain or virtually certain, as the case may
be, that sufficient future taxable income will be available.
Minimum Alternate Tax is recognised as an asset only when and to the extent
there is convincing evidence that the company will pay normal income tax
during the specified period.
Indirect taxes
GST liability on output services is set-off against the GST credits available from
tax paid on input services. Unutilised GST credits, if any, are carried forward for
future set-off, where there is reasonable certainty of utilisation.
Provision is made for unutilised GST credit where the utilisation is uncertain.
2.8 Provisions and contingencies
Provisions are recognised in respect of present obligations as a result of a past
event and it is probable that an outflow of resources will be required and a
reliable estimate can be made of the amount of the obligation. A disclosure
of a contingent liability is made when there is a possible obligation or present
obligations that may, but probably will not, require an outflow of resources or
it cannot be reliably estimated. When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.
Loss contingencies arising from claims, litigation, assessment, fines, penalties,
etc are recorded when it is possible that a liability has been incurred and the
amount can be reasonably estimated. Contingent assets are neither recognised
nor disclosed in financial statements since this may result in the recognition of
income that may never be realised.
2.9 Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the
year attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. For the purpose of calculating diluted
earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares.
2.10 Cash flow statement
Cash flow statement is reported using the “Direct method” prescribed under
Accounting Standard 3 – Cash Flow Statements which requires major classes of
gross receipts and gross cash payments to be disclosed.
2.11 Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise
cash at bank and in hand and short-term investments with an original maturity
of three months or less.
 significant accounting policies and other
explanatory information Continued
3 Notes to accounts 3.2 Reserves and surplus
3.1 Share capital The following table sets forth, for the periods indicated, the details of reserves
and surplus.
The following table sets forth, for the dates indicated, the details of outstanding
(in `)
share capital.
(in `) At At
Particulars
March 31, 2018 March 31, 2017
At At Surplus - Opening balance (20,125,287) (14,433,736)
Particulars Add: Profit/( Loss) for the period (6,605,635) (5,691,551)
March 31, 2018 March 31, 2017
Authorised: Surplus – Closing balance (26,730,922) (20,125,287)
35,000,000 (At March 31, 2017:
35,000,000) Equity shares of `10 each 350,000,000 350,000,000 3.3 Deferred taxes
Issued, subscribed and fully paid up:  Deferred tax liability is recognised on timing differences arising between
29,000,000 (At March 31, 2017: taxable and accounting income using the tax rates and laws that are enacted or
29,000,000) Equity shares of ` 10 each substantively enacted as on the Balance Sheet date. The deferred tax asset is to
(All the above equity shares of ` 10 each be recognised and carried forward only to the extent that there is a reasonable
290,000,000 290,000,000
are held by the holding company, ICICI certainty that the asset will be realised in future. Deferred tax credit recognised
Prudential Life Insurance Company Limited is restricted to ` 49,456 (i.e bought forward liability) during the year ended
and it’s nominees) March 31, 2018. (Previous period: Deferred tax credit of ` 97,295).
Total 290,000,000 290,000,000 (in `)

The company has only one class of share having a par value of ` 10 per share. Particulars At At
The entire share capital is held by ICICI Prudential Life Insurance Company March 31, 2018 March 31, 2017
Limited and the ultimate holding Company is ICICI Bank Limited. Deferred tax liabilities
Shareholder holding more than 5 % shares of the company is ICICI Prudential -Difference in amortisation/depreciation
Life Insurance Company Limited and its nominees, it holds 29,000,000 equity on fixed assets as per tax books and
shares. accounting books - 49,456
Net deferred tax liabilities - 49,456
Terms/rights attached to equity shares
3.4 Other current liabilities
The Company has only one class of equity shares having a par value of
` 10 per share. Each holder of equity shares is entitled to one vote per share. The following table sets forth, for the dates indicated, the details of other current
A reconciliation of the shares outstanding at the beginning and at the end of the liabilities.
(in `)
period is as follows:
Year ended March 31, 2018 Year ended March 31, 2017 Particulars At At
Equity shares Number of Amount Number of Amount March 31, 2018 March 31, 2017
shares (in `) shares (in `) Other payables
At the beginning of the 29,000,000 290,000,000 27,000,000 270,000,000 - Payable to holding company 7,201,952 6,043,923
period
- Tax deducted at source payable 1,288,736 549,027
Issued during the period - - 2,000,000 20,000,000
- Payable to others for expenses 644,743 39,749
Outstanding at the end 29,000,000 290,000,000 29,000,000 290,000,000
of the period
- Service tax payable - 18
Provision for other expenses 680,014 2,483,687
Total 9,815,445 9,116,404

3.5 Fixed assets

The following table sets forth, for the dates indicated, the details of fixed assets.
(in `)
Gross Block Depreciation and amortisation Net block
Particulars Balance Additions/ Balance at Balance at For year On Balance at Balance at Balance at
at April 1, (Disposals) March 31, April 1, 2017 ended March Disposals March 31, March 31, March 31,
2017 2018 31, 2018 2018 2018 2017
Tangible assets
Office equipment 351,664 - 351,664 302,852 48,812 - 351,664 - 48,812
Intangible assets
Computer software 4,660,901 - 4,660,901 4,493,317 167,584 - 4,660,901 - 167,584
Total 5,012,565 - 5,012,565 4,796,169 216,396 - 5,012,565 - 216,396
At March 31, 2017 5,012,565 - 5,012,565 4,396,784 399,385 - 4,796,169

3.6 Non-current investments

The following table sets forth, for the dates indicated, the details of non-current investments.
(in `)
At At
Particulars
March 31, 2018 March 31, 2017
Other investments:
Investments in debentures or bonds – quoted instruments
- 9.39% LIC Housing Finance Limited (Maturity: August 23, 2024) (At March 31, 2018: 50 units of face value ` 1,000,000 each)
50,000,000 50,000,000
(At March 31, 2017: 50 units of face value ` 1,000,000 each )
-7.85% HDFC Limited
150,000,000 -
(Maturity: June 21, 2019) (At March 31, 2018: 15 units of face value ` 10,000,000 each) (As at March 31, 2017: Nil)
Total 200,000,000 50,000,000
Aggregate amount of investments in debentures or bonds at market value 203,106,134 53,758,510

285
significant accounting policies and other
explanatory information Continued
3.7 Other non-current assets 3.11 Short-term loans and advances
The following table sets forth, for the dates indicated, the details of other non- The following table sets forth, for the dates indicated, the details of short term
current assets loans and advances.
(in `) (in `)
At At At At
Particulars Particulars
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Service tax unutilised credit 14,650,366 11,131,613 Others (Unsecured, considered good)
Less: Provision for service tax unutilised Prepaid expenses – 78,720
credit (14,650,366) (11,131,613) Total – 78,720
Bank deposit with residual maturity of
17,000,000 16,000,000
more than 12 months 3.12 Other current assets
Accrued interest on bank deposit with The following table sets forth, for the dates indicated, the details of other
5,262,255 3,596,056
residual maturity of more than 12 months current assets.
Advance income tax 260,426 157,512 (in `)
Total 22,522,681 19,753,568
At At
Particulars
March 31, 2018 March 31, 2017
3.8 Current investments Interest accrued on fixed deposit 5,370,545 38,482,568
The following table sets forth, for the dates indicated, the details of current Less: Amount disclosed under
(5,262,255) (3,596,056)
investments. other non-current assets
(in `) Net interest accrued on fixed
108,290 34,886,512
deposit
At At Interest accrued on debenture/
Particulars 3,133,263 2,817,000
March 31, 2018 March 31, 2017 bonds
Total 3,241,553 37,703,512
Investments in mutual funds - quoted (at
lower of cost or market value):
3.13 Investment management fees
-IDFC Cash Fund – Growth
The Investment Management Fees is charged on closing funds under
(At March 31, 2018: 20233 units and 951 42,544,939 9,737,267 management on daily basis for all the schemes. In terms of the PFRDA’s
fractions ) (At March 31, 2017: 5026 units letter no. PFRDA/6/PFM/9/2 dated July 31, 2014, the Company has started
and 807 fractions) charging investment management fee of 0.01% per annum, with effect from
Total 42,544,939 9,737,267 August 01, 2014.
Aggregate amount of mutual fund 3.14 Employee benefit expenses and cost sharing arrangement
42,697,876 9,929,068
investments at market value Salaries and wages
3.9 Trade receivables The employees are on deputation from the Sponsor and their remuneration is
The following table sets forth, for the dates indicated, the details of trade paid by the Company as per the terms of employment with the Sponsor.
receivables. Cost sharing arrangement
(in `) Given the size of its operations, the Company has entered into an arrangement
At At with the Sponsor for sharing employees and infrastructure while maintaining
Particulars adequate firewalls between the two entities. Under this arrangement, all the
March 31, 2018 March 31, 2017 appropriate costs attributable to the Company like employee remuneration, rent,
Trade receivables outstanding for a utilities, depreciation on computers/hardware and other technology and software
related expenses are transfer priced by the Sponsor to the Company. All such
period less than six months from the date costs are charged to the Company on arm’s length basis as per the Transfer Pricing
they are due for payment Policy with the Sponsor. The expenses cross charged to the Company under such
- Unsecured considered good agreement have been shown as transactions with related parties under note 3.17.
The detail of salary cross charged to the company is as follows:
o Investment management fees (in `)
receivable
578,696 327,232 Year ended Year ended
Particulars
578,696 327,232 March 31, 2018 March 31, 2017
Salary cross charged (Net of
Trade receivables outstanding for a 18,347,025 17,370,266
period exceeding six months from the service tax/ GST)
date they are due for payment Add: Cenvat / Input unavailed on
current peri-od outstanding net of
- Unsecured considered good - - 308,823 76,686
cenvat /input availed per-taining to
- Unsecured considered doubtful - - previous financial year
Less: Provision for doubtful debts - - Net salary expense as per
18,655,848 17,446,952
- - statement of Profit and Loss
Total 578,696 327,232
3.15 Other expenses
The following table sets forth, for the periods indicated, the details of other expenses.
3.10 Cash and bank balances (in `)
The following table sets forth, for the dates indicated, the details of cash and bank
balances Year ended Year ended
(in `) Particulars
March 31, 2018 March 31, 2017
At At Provision for unutilised service
Particulars 3,518,752 2,903,611
March 31, 2018 March 31, 2017 tax credit
Cash and cash equivalents Brokerage expenses 2,656,507 1,644,627
Rent and utilities charges 2,350,439 1,870,396
Balances with banks
Information technology expenses 1,737,738 1,205,069
- Balance in current account 696,654 323,878 Legal and professional fees 1,495,215 1,618,106
Other bank balances PFRDA annual license fees 1,000,000 1,000,000
- Term deposit with original maturity of PFRDA RFP fees - 1,000,000
20,500,000 176,900,000
more than 3 months Payments to the auditor as:
Sub-total 21,196,654 177,223,878 - auditor 153,375 228,874
Amount disclosed under other non- - for reimbursement of expenses 3,000 7,157
(17,000,000) (16,000,000)
current assets* Staff welfare expenses 154,480 139,247
Total 4,196,654 161,223,878 Travelling and conveyance 111,843 168,002
expenses
* Term deposits with residual maturity of more than 12 months have been Miscellaneous charges 93,882 85,607
disclosed under non-current assets Total 13,275,231 11,870,696

286
significant accounting policies and other
explanatory information Continued
3.16 Earnings per equity share (in `)
(in `)
Year ended Year ended
Nature of transaction
Year ended March Year ended March March 31, 2018 March 31, 2017
Particulars ICICI Prudential Life Insurance
31, 2018 31, 2017
Company Limited
Net profit/(loss) after tax as per Employees’ remuneration and
statement of profit and loss 18,465,904 17,413,946
welfare benefits expenses
available for equity shareholders (6,605,635) (5,691,551) Rent and utilities 2,250,740 1,858,679
for both basic and diluted earnings Information technology expense 1,200,505 185,765
per equity share of ` 10 each (in `) Travelling & conveyance 109,230 173,918
Weighted average number of Communication Expense 76,068 66,438
Legal and Professional Charges 31,734 1,120
equity shares for earnings per
Total 22,134,181 19,699,866
equity share
(a) For basic earnings per equity Balances with related parties are as follows:
29,000,000 27,553,425
share (in `)
(b) For diluted earnings per equity At At
29,000,000 27,553,425 Particulars
share March 31, 2018 March 31, 2017
ICICI Prudential Life Insurance
Earnings per equity share 7,201,952 6,043,923
Company Limited
Basic and Diluted (in `) (0.23) (0.21) ICICI Bank Limited - -
Total 7,201,952 6,043,923
3.17 Details of related parties and transactions with related parties
Related parties and nature of relationship: 3.18 Contingent liabilities
(in `)
Nature of relationship Name of the related party
At At
Ultimate holding company ICICI Bank Limited Particulars
March 31, 2018 March 31, 2017
Holding company (Sponsor) ICICI Prudential Life Insurance Bank guarantee given on behalf
Company Limited of Company
Fellow subsidiaries of holding ICICI Securities Limited Issued in favour of PFRDA 3,000,000 2,000,000
company and entities jointly ICICI Securities Inc.
controlled by ultimate holding ICICI Securities Holding Inc. The Company has deposited with PFRDA an unconditional and irrevocable
performance bank guarantee (PBG) for the due performance and fulfillment of the
company ICICI Securities Primary Dealership terms and conditions of the Letter of appointment under the new RFP (Request for
Limited proposal) dated July 23, 2014 and the Investment Management Agreement (IMA).
ICICI Venture Funds Management In the event of the Sponsor or the Company being unable to service the IMA or the
Company Limited terms and conditions of the Letter of appointment under the new RFP for whatever
ICICI Home Finance Company Limited reason, PFRDA may invoke the PBG submitted by the Company.
ICICI Trusteeship Services Limited 3.19 Encumbrances of assets
ICICI Investment Management The assets of the Company are free from all encumbrances at March 31, 2018,
Company Limited except for fixed deposits of ` 5,500,000 (at March 31, 2017: ` 4,500,000). Of this,
ICICI International Limited ` 1,000,000 (at March 31, 2017: ` 1,000,000) pertains to a deposit made with State
ICICI Bank UK PLC. Bank of India* and ` 2,000,000 (at March 31, 2017: 1,000,000) pertains to a deposit
made with Corporation bank as a security towards guarantee issued by the bank
ICICI Bank Canada on behalf of the Company in favour of PFRDA (Refer Note 3.18 Contingent Liability).
ICICI Lombard General Insurance Balance of ` 2,500,000 (at March 31, 2017: ` 2,500,000) (Refer Note 3.10 Cash and
Company Limited Bank Balances) pertains to a deposit made with Corporation Bank towards margin
ICICI Prudential Asset Management requirement for equity trade settlement pertaining to Scheme E Tier I and II issued
Company Limited in favour of National Securities Clearing Corporation Limited. The margins are
imposed by clearing houses on equity cash segment transactions for enabling
ICICI Prudential Trust Limited settlement on T+2 basis. The physical custody of the mentioned fixed deposits
Consolidated under AS-21 by ICICI Strategic Investments Fund is with the respective clearing houses, however the income accrued on the fixed
deposits shall be passed on to the Company on encashment of the mentioned
ultimate holding company deposits.
Key management personnel Meghana Baji, Chief Executive Officer
*Originally with State bank of Travancore
and Chief Investment Officer
3.20 Direct taxes
The following represents transactions between the Company and its related Current tax is Nil (Previous Period: Nil)
parties.
(in `) 3.21 The Micro, Small and Medium Enterprises Development Act, 2006
Year ended Year ended Based on current information available with the Company, there are no dues
Nature of transaction payable to suppliers who are registered under the Micro, Small and Medium
March 31, 2018 March 31, 2017 Enterprise Development Act, 2006, at March 31, 2018 (At March 31, 2017: Nil).
ICICI Bank Limited
Conference room charges 3,000 - 3.22 Previous period comparatives
Total 3,000 - Previous period amounts have been regrouped and reclassified wherever
necessary to conform to current period’s presentation.

For Chaturvedi & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 302137E

S.N. Chaturvedi Sandeep Bakhshi Sandeep Batra

Partner Chairman Director
Membership No. 040479 DIN: 00109206 DIN: 03620913

Place: Mumbai Meghana Baji Dhiraj Chugha Shweta Nayak

Date: April 23, 2018 Chief Executive Officer Chief Financial Officer Company Secretary
M. No.: ACS 44318
287
 ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED
18TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors J. V. Prasad Registered Office
Chanda Kochhar, Chairperson Appointed Actuary ICICI Lombard House
Ved Prakash Chaturvedi 414, Veer Savarkar Marg,
Uday Chitale Auditors Near Siddhi Vinayak Temple,
Lalita D. Gupte Chaturvedi & Co. Prabhadevi, Mumbai - 400 025.
N. S. Kannan Chartered Accountants www.icicilombard.com
Suresh Kumar
CIN-L67200MH2000PLC129408
Vishal Mahadevia
PKF Sridhar & Santhanam LLP
Ashvin Parekh
Chartered Accountants
Bhargav Dasgupta
Alok Kumar Agarwal
Sanjeev Mantri Vikas Mehra
Company Secretary

directors’ report
to the members

To the Members, SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR

Your Directors have pleasure in presenting the Eighteenth Annual Report of ICICI COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE
Lombard General Insurance Company Limited (ICICI Lombard/the Company) along COMPANY AND ITS FUTURE OPERATIONS
with the audited financial statements for the year ended March 31, 2018 (FY 2018). There are no significant and/or material orders passed by the Regulators or Courts or
Tribunals impacting the going concern status of future operations of the Company.
INDUSTRY OVERVIEW
The gross direct premium income (GDPI) of the industry grew from ` 1,282.13 billion
in FY2017 to ` 1,507.05 billion in FY2018, a growth of 17.5%. ICICI Lombard’s GDPI DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL
increased from ` 107.25 billion in FY2017 to ` 123.57 billion in FY2018, a growth The Board of Directors of ICICI Lombard as on March 31, 2018 consisted of ten
of 15.2%. ICICI Lombard led the private sector players in the general insurance Directors, out of which five are independent Directors, two are non-executive non-
sector with a market share of 16.8% and had an overall industry market share of independent Directors and three are whole-time Directors.
8.2%. ICICI Lombard has now become the 4th largest player overall in the general All the Directors of the Company have given declarations that they meet the criteria
insurance sector at March 31, 2018. of ‘fit and proper’ as laid down under Corporate Governance Guidelines of IRDAI.
FINANCIAL HIGHLIGHTS Changes in composition of the Board of Directors during the year are as follows:
The financial performance for FY2018 is summarised in the following table:
Name of Director Resignation/ With effect
(` billion) Cessation from
FY2017 FY2018 R. Athappan, Non-Executive, Nominee of Fairfax Cessation June 8, 2017
Financial Holdings Limited
Gross written premium 109.60 126.00 Chandran Ratnaswami, Non-Executive, Nominee of Cessation July 2, 2017
Earned premium (net) 61.64 69.12 Fairfax Financial Holdings Limited
Income from Investments 12.83 14.82 S Mukherji, Non-Executive, Nominee of ICICI Bank Cessation July 3, 2017
Profit before tax 9.10 11.96 Limited
Vijay Chandok, Non-Executive, Nominee of ICICI Bank Cessation July 3, 2017
Profit after tax 7.02 8.62
Limited
EPS-Basic 15.66 19.01
EPS-Diluted 15.58 18.99 The Board at its Meeting held on April 25, 2018 appointed Vishal Mahadevia as an
Additional Director of the Company in the category of non-executive independent
APPROPRIATIONS with effect from April 25, 2018 subject to shareholders’ approval. The appointment is
The profit after tax for the year ended March 31, 2018 is ` 8.62 billion. The profit accordingly proposed to the shareholders’ for their approval.
available for appropriation is ` 25.69 billion after taking into account the balance
of profit of ` 17.07 billion brought forward from the previous year. The Board Independent Directors
had approved payment of interim dividend of ` 1.50 per equity share during the All independent Directors have given declarationsthat they meet the criteria of
year. The Board of Directors at its meeting held on April 25, 2018 has further independence as laid down under Section 149(6) of the Companies Act, 2013,
recommended a final dividend of ` 2.50 per equity share to the shareholders’ SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and ‘fit and
subject to their approval. proper’ declaration as laid down under Corporate Governance Guidelines of IRDAI.

SECRETARIAL STANDARDS Retirement of Director by Rotation

During FY2018, the Company was in compliance with the applicable Secretarial
Standards issued by the Institute of Company Secretaries of India with respect to
Board and General Meetings.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The provisions of Section 186(4) of the Companies Act, 2013 (the Act) requiring
disclosure in the financial statements of the full particulars of the loans given,
investment made or guarantee given or security provided and the purpose for which
the loan or guarantee or security are proposed to be utilised by the recipient of the
loan or guarantee or security are not applicable to the Company.
In accordance with the provisions of Section 152 of the Companies Act, 2013, and
the Articles of Association of the Company, N. S. Kannan, being non-executive non-
independent Director of the Company, would retire by rotation at the forthcoming
AGM and is eligible for re-appointment. N. S. Kannan has offered himself for re-
appointment.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and guidelines for insurance
companies issued by Insurance Regulatory and Development Authority of India
(IRDAI), the Board has carried out an annual performance evaluation of its own
performance as a whole and that of its statutory committees and that of its individual
directors both executive and non-executive including independent Directors and
the Chairperson. The manner in which the evaluation has been carried out has been
explained in the Corporate Governance Report.

288
directors’ report
to the members
Deposits
During the year under review, ICICI Lombard has not accepted any deposits from
the public.
Listing of Equity Shares
During FY2018, ICICI Lombard completed its Initial Public Offer (“IPO”) by way of an
offer for sale of 86,247,187 equity shares of face value ` 10 each of the Company, by
the selling shareholders ICICI Bank Limited and FAL Corporation.
The shares of the Company were listed on National Stock Exchange of India Limited
(NSE) and BSE Limited (BSE) on September 27, 2017.
AUDITORS
Statutory Auditors
IRDAI vide circular dated May 18, 2016, had issued Corporate Governance Guidelines
(CG guidelines) wherein criteria for appointment of statutory auditors of insurance
companies had been stated.
The present term of office of the joint statutory auditors of the Company, namely,
Chaturvedi & Co., Chartered Accountants and PKF Sridhar & Santhanam LLP,
Chartered Accountants expires at the conclusion of the ensuing Annual General
Meeting (AGM); however both the audit firms are eligible for re-appointment.
Chaturvedi & Co., Chartered Accountants, has completed its first term of five
years and PKF Sridhar & Santhanam LLP, Chartered Accountants, has completed
two years out of their first term of five years as on March 31, 2018.
The re-appointment of Chaturvedi & Co., Chartered Accountants, as recommended
by the Audit Committee and approved by the Board, is proposed for a second term
of five years i.e. from the conclusion of the Eighteenth AGM upto the conclusion
of the Twenty-third AGM subject to ratification by the Members every year. The
appointment of PKF Sridhar & Santhanam LLP, Chartered Accountants is proposed
for a period of three years i.e. from the conclusion of the Eighteenth AGM till the
conclusion of the Twenty-first AGM subject to ratification by the Members every year.
Chaturvedi & Co. and PKF Sridhar & Santhanam have confirmed their eligibility
under Section 141 of the Act and the rules framed thereunder for re-appointment as
Auditors of the Company.
The appointment is accordingly proposed in the Notice of the forthcoming AGM
vide item no. 4.
Auditor’s Report
There is no qualification, reservation, adverse remark or disclaimer made by the
auditors in their report.
Secretarial Auditors
Pursuant to provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company
had appointed Dholakia & Associates LLP, a firm of practising company secretaries,
to conduct the secretarial audit of the Company for FY2018. The Secretarial Audit
Report is annexed herewith as Annexure A. There are no qualifications, reservation,
adverse remark or disclaimer made by the auditor in the report save and except
disclaimer made by them in discharge of their professional obligation.
PARTICULARS OF EMPLOYEES
The statement containing particulars of employees as required under Section
197 read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, forms part of this Report as “Annewxure B”
to the Directors’ Report.
The statement containing particulars of employees as required under Section 197
read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 forms part of this report. In terms of the provisions of
Section 136 of the Companies Act, 2013 the Directors’ Report is being sent to the
shareholders of ICICI Lombard excluding the aforesaid Annexure. Any shareholder
interested in obtaining a copy of the Annexure may write to the Company Secretary
at the registered office of the Company.
RELATED PARTY TRANSACTIONS
ICICI Lombard undertakes various transactions with related parties in the ordinary
course of business. ICICI Lombard has a Board-approved Policy on Related Party
Transactions.
The transactions between the Company and its related parties, during the year ended
March 31, 2018 were in the ordinary course of business and based on the principles
of arm’s length basis. The details of related party transactions are disclosed under
Note No. 5.2.12 of the Notes to Financial Statements for FY2018.
All materially significant related party transactions are placed before the
Audit Committee on a quarterly basis. The policy on dealing with related party
transactions has been hosted on the website and can be viewed at https://www.
icicilombard.com/docs/default-source/default-document-library/policy-on-related-
party-transactions.pdf
EXTRACT OF ANNUAL RETURN
Extract of Annual Return pursuant to the prescribed provisions of Companies Act,
2013, and the rules framed thereunder is furnished in Form MGT-9, annexed as
“Annexure C” to this report.
Continued
RISK MANAGEMENT FRAMEWORK
A statement indicating development and implementation of risk management policy
including identification therein of elements of risk, if any, which may pose significant
risk to the Company has been given in the Corporate Governance Report.
DISCLOSURES AS PER THE SEXUAL HARASSEMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
ICICI Lombard has a policy against sexual harassment and a formal process for
dealing with complaints of harassment or discrimination. The said policy is in line
with relevant Act passed by Parliament in 2013. ICICI Lombard through its policy
ensures that all such complaints are resolved within defined timelines. Seven cases
were reported and were disposed off.
RURAL AND SOCIAL RESPONSIBILITY
ICICI Lombard issued more than 565,000 policies in rural areas and covered more
than 17,500,000 lives falling within the norms of social responsibility, as prescribed
by IRDAI.
CAPITAL
The total capital invested till March 31, 2018 including share premium, was
` 20.21 billion. The net worth of ICICI Lombard increased from ` 37.25 billion at
March 31, 2017 to ` 45.41 billion at March 31, 2018. The solvency position of ICICI
Lombard at March 31, 2018 was 2.05 times as against minimum of 1.50 times
prescribed by IRDAI.
DIVIDEND AND DIVIDEND DISTRIBUTION POLICY
The operations have resulted in a profit after tax of ` 8.62 billion as compared to
a profit after tax of ` 7.02 billion for the previous year. The Board had approved
payment of interim dividend of ` 0.75 per equity share for the first quarter of the
FY2018 by way of circular resolution on June 23, 2017 and second interim dividend
of ` 0.75 per equity share, for the second quarter of the FY2018 at its Meeting held
on October 17, 2017. Further, the Board at its Meeting held on April 25, 2018, has
recommended a final dividend of ` 2.50 per equity share to the shareholders’ for
their approval.
In terms of Regulation 43A of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”)
the Dividend Distribution Policy of the Company has been hosted on the Company’s
website and can be viewed at, https://www.icicilombard.com/docs/default-source/
Policy-Wordings-product-Brochure/dividend-policy.pdf
Corporate Social Responsibility (CSR)
The Company has constituted Corporate Social Responsibility (CSR) Committee in
accordance with the provisions of the Companies Act, 2013. The CSR Committee
was constituted comprising of members of the board of directors of the Company
consisting of three directors including independent Directors. The CSR policy
of the Company and the details about the development of the CSR policy and
initiatives taken by the Company on CSR during the year are in accordance with
the Companies (Corporate Social Responsibility Policy) Rules, 2014 as given in
Annexure D to this report.
CREDIT RATING
During the year, ICICI Lombard has maintained credit rating of “AAA” by ICRA and
“Crisil AAA/Stable” by Crisil for subordinate debt raised by the Company. This is the
highest rating regarding safety and timely servicing of financial obligations.
Further, the Company maintained its credit rating of “iAAA” awarded by ICRA for
claims paying ability by the Company. This indicates that the Company has highest
claims paying ability and has a fundamentally strong position.
CORPORATE GOVERNANCE REPORT
I. PHILOSOPHY OF CORPORATE GOVERNANCE
ICICI Lombard is fully committed to follow sound corporate governance practices
and uphold the highest business standards in conducting business. ICICI Lombard
continues to focus on building trust with shareholders, policyholders, employees,
customers, suppliers and other stakeholders based on the principles of good corporate
governance viz. integrity, equity, transparency, fairness, sound disclosure practices,
accountability and commitment to values. It also aims to increase and sustain its
corporate value through growth and innovation.
The Company’s governance framework encompasses not only regulatory and legal
requirements but also several voluntary practices aimed at maximising shareholders’
value legally, ethically and on a sustainable basis.
Whistle Blower Policy
ICICI Lombard has formulated a Whistle Blower Policy (‘Policy’) which is designed
to provide its employees, a channel for communicating instances of breach in the
code of conduct, legal violation, actual or suspected fraud on the accounting policies
and procedures adopted for any area or item. The policy provides for a mechanism
to report such concerns to the Audit Committee through specified channels. The
framework of the Policy strives to foster responsible and secure whistle blowing.
This mechanism has been communicated to the employees and posted on ICICI
Lombard’s intranet. The whistle blower policy has been hosted on the Company’s
website and can be viewed at, https://www.icicilombard.com/legal/whistle-blower-
policy
289
 directors’ report
to the members Continued
Code of Conduct as prescribed under the Securities and Exchange Board of India areas. There is an appropriate mix of executive, non-executive and independent
(Prohibition of Insider Trading) Regulations, 2015 Directors to maintain the professionalism and independence of the Board. The
In accordance with the requirements of the Securities and Exchange Board of India independent Directors are eminent personalities with significant expertise in the
(Prohibition of Insider Trading) Regulations, 2015, ICICI Lombard has instituted a fields of accountancy, banking, finance, law, strategy, insurance and economics.
code of conduct to regulate, monitor and report trading in equity shares and debt None of the Directors are related to any other Director or employee of the
securities by its Directors, Employees and other Connected Persons and to the Company.
extent specified in the code to their Immediate Relatives. J. V. Prasad, Appointed Actuary of the Company is a permanent invitee to the Board
Code of Conduct Meeting.
ICICI Lombard is committed to conduct its business with highest standards of Composition of the Board of Directors
compliance and ethical conduct. This code of conduct has been adopted to summarize
the standards of business conduct that must guide the actions of the employees
Name of the Director Category Qualification Field of
(including all Directors) at all times. This code is hosted on the website of the Company:
Specialisation
https://www.icicilombard.com/docs/default-source/default-document-library/code-of-
Chanda Kochhar Chairperson, B.A, MBA, I.C.W.A., Banking &
conduct.pdf. Pursuant to Securities and Exchange Board of India (Listing Obligations and
(DIN: 00043617) Non-Executive, MMS (Finance) finance.
Disclosure Requirements) Regulations, 2015, a confirmation from the Managing Director
Non-Independent
& CEO regarding compliance with the Code by all the Directors and senior management
forms part of the Annual Report. Ved Prakash Non-Executive, B.E., MBA-IIM Finance &
Chaturvedi Independent Bangalore investment.
CEO/CFO Certification: (DIN: 00030839)
In terms of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015, Uday Chitale Non-Executive, C.A. Finance &
the certification by the Managing Director & CEO and Chief Financial Officer of the (DIN: 00043268) Independent audit.
Company on the financial statements and internal controls relating to financial Lalita D. Gupte Non-Executive, BA (Eco. Hons.), Banking &
reporting has been obtained. (DIN: 00043559) Independent MMS – Master insurance.
of Management
Management Structure Studies
The Company has a multi-tier management structure, comprising the Board of N. S. Kannan Non-Executive, B.E. (Hon), PGDM, Banking &
Directors at the apex followed by employees at the top management, senior (DIN:00066009) Non-Independent IIM, Bangalore, CFA finance.
management, middle management and junior management positions to ensure that:
Suresh Kumar Non-Executive, B. Com (Hons.) Banking &
 Strategic supervision is provided by the Board;
(DIN: 00494479) Independent Post Graduation finance.
 Control and implementation of Company’s strategy is achieved effectively; -Investment
 Operational management remains focused on implementation; Management
Programme,
 Information regarding the Company’s operations and financial performance is Stanford University
made available to stakeholders. and London School
 Delegation of decision making with accountability is achieved; of Business Advance
 Financial and operating control and integrity are maintained at an optimal level; Management-
Columbia Business
 Risk is suitably evaluated and dealt with; School
 Compliance with applicable acts and regulations is achieved; and Ashvin Parekh Non-Executive, F.C.A Business
 Corporate culture that recognises and rewards adherence to ethical standards is (DIN:06559989) Independent strategy,
developed. Corporate
planning,
This multi-tier management structure, besides ensuring greater management business
accountability and credibility, facilitates increased autonomy of businesses, transformation
performance discipline and development of business leaders, leading to enhanced across various
public confidence. industries.
Vishal Mahadevia* Non-Executive, B.S. (Economics) Finance &
II. Board of Directors (DIN:01035771) Independent B.S. (Electrical investment.
ICICI Lombard has a broad-based Board of Directors, constituted in compliance Engineering)
with provisions of the Companies Act, 2013, and Corporate Governance Bhargav Dasgupta Managing B.E. (Mechanical) Banking &
Guidelines prescribed for insurance companies by IRDAI and in accordance with (DIN:00047728) Director & CEO PGDM, IIM insurance.
good governance practices. As on the date of this report, the Company’s Board of Bangalore
Directors consisted of eleven members. Out of the eleven members of the Board, Alok Kumar Agarwal Executive B.E. (Chemical) Banking &
two are non-executive non-independent Directors, six are independent Directors (DIN:03434304) Director - PGDM, IIM Calcutta insurance.
and three are whole-time Directors including the Managing Director & CEO. Wholesale
Except the whole-time Directors, all other Directors, including the Chairperson of Sanjeev Mantri (DIN: Executive F.C.A, I.C.W.A. Banking &
the Board are non-executive Directors. The Board functions either as an entity per 07192264) Director - Retail insurance.
se, or through various Committees constituted to oversee specific operational
*Appointed with effect from April 25, 2018

The Board meets at regular intervals to discuss and decide on business policy and strategy apart from other Board business. The Board met ten times during the year under
review on April 18, 2017, May 27, 2017, June 5, 2017, June 9, 2017, July 3, 2017, July 19, 2017, August 24, 2017, October 17, 2017, January 16, 2018 and February 16, 2018.
There were no inter-se relationships between any of the Directors. The names of the Directors, their attendance at Board Meetings during the year, attendance at the last
Annual General Meeting (AGM) and the number of other directorships and board committee memberships held by them at March 31, 2018 are set out in the following table:

Name of the Director Board Meetings Attendance at the Number of other Directorships Number of Committees of other
attended/held AGM held on July Companies4
during the year 10, 2017 Of Indian public Of other In which a In which a
limited companies Companies3 Member Chairperson
Non-executive, non-independent Directors
Chanda Kochhar, Chairperson 9/10 Present 4 3 0 0
R. Athappan1 0/4 N.A. N.A. N.A. N.A. N.A.
Vijay Chandok 2
4/4 N.A. N.A. N.A. N.A. N.A.
N. S. Kannan 10/10 Present 4 2 3 0
S. Mukherji2 4/4 N.A. N.A. N.A. N.A. N.A.
Chandran Ratnaswami3 3/4 N.A. N.A. N.A. N.A. N.A.
Independent Directors
Ved Prakash Chaturvedi 10/10 Present 1 1 0 1
Lalita D. Gupte 7/10 Present 5 0 5 2

290
directors’ report
to the members Continued

Suresh Kumar 10/10 Absent 2 8 2 0

Ashvin Parekh 10/10 Present 2 0 0 2
Uday Chitale 10/10 Present 6 0 5 3
Wholetime Directors
Bhargav Dasgupta 10/10 Present 0 0 0 0
Alok Kumar Agarwal 9/10 Present 0 0 0 0
Sanjeev Mantri 9/10 Present 0 0 0 0
Appointed Actuary
J. V. Prasad 9/10 N.A. N.A. N.A. N.A. N.A.
1. R. Athappan ceased to be a Director of the Company w.e.f. June 8, 2017
2. Vijay Chandok and S. Mukherji ceased to be a Director of the Company w.e.f. July 3, 2017. Chandran Ratnaswami ceased to be a Director of the Company w.e.f. July
2, 2017.
3. Comprises private limited companies incorporated in India and foreign companies but excludes Section 8 companies and not for profit foreign companies.
4. Comprises only Audit Committee and Stakeholders’ Relationship Committee of Indian public limited companies.

In terms of the Listing Regulations, the number of Committees (Audit Committee viii) Approval of the policy for and quantum of bonus/long term performance
and Stakeholders Relationship Committee) of public limited companies in which pay payable to the members of the staff.
a Director is a member/chairman/chairperson were within the limits prescribed ix) To devise a policy on diversity of the Board.
under Listing Regulations, for all the Directors of the Company. The number of
directorships of each independent Director is also within the limits prescribed under x) 
To carry out any other function, if any, as prescribed in the terms of
Listing Regulations. reference of the Board Nomination and Remuneration Committee and any
other terms of reference as may be decided by the Board and/or specified/
Details of Equity shares held by the non-executive directors as on March 31, 2018: provided under the Companies Act, 2013 or the Listing Regulations, or by
Sr. No. Name of the Director No. of Equity Shares any other regulatory authority.
1. Chanda Kochhar - Composition
2. Ved Prakash Chaturvedi - In terms of the provisions of Companies Act, 2013, the Board Nomination and
3. Uday Chitale - Remuneration Committee (the Committee) comprises of four non-executive
4. Lalita D. Gupte 1,782 Directors, three of whom are independent Directors. The Committee is chaired
5. N.S. Kannan - by Uday Chitale, a non-executive independent Director of the Company.
6. Suresh Kumar - The composition of the Committee is given below along with the attendance of
7. Ashvin Parekh - the members. The Committee met three times in the year under review on April
Board Committees (‘the Committees’) 18, 2017, June 9, 2017 and July 3, 2017.
The Board has constituted the following Committees: Attendance record of the Members:
(i) Board Nomination and Remuneration Committee
Name of Member Number of Meetings attended
(ii) Audit Committee Uday Chitale, Chairman 3/3
(iii) Investment Committee Chanda Kochhar 3/3
(iv) Risk Management Committee Chandran Ratnaswami* 1/2
Lalita D. Gupte 2/3
(v) Policyholder Protection Committee Ashvin Parekh 3/3
(vi) Corporate Social Responsibility Committee
*Ceased to be Member with effect from July 2, 2017.
(vii) Stakeholders Relationship Committee
The Board of Directors at its Meeting held on July 3, 2017 had re-constituted
(viii) Strategy Committee the Board Nomination and Remuneration Committee pursuant to which
The terms of reference of the Committees of the Board are determined by the Board Chandran Ratnaswami ceased to be member of the Committee.
from time to time. Minutes of the Committee Meetings are placed before the Board
Performance Evaluation of Board, Committees and Directors:
for its information. The Chairman/Chairperson of the respective Committees briefs
Pursuant to the provisions of the Companies Act, 2013 and Guidelines for
the Board on deliberations taken place at the Committee Meetings in relation to
insurance companies issued by IRDAI, the Board shall carry out evaluation of
important discussions, notings and approvals. The role and composition of these
every Director’s performance. The Companies Act, 2013 had also prescribed
Committees, along with the number of meetings held during FY2018 and the
the code of conduct (‘the Code’) for independent Directors which provided
attendance of the members are provided below:
that the independent Directors shall meet atleast once in a year to review the
i) Board Nomination and Remuneration Committee performance of non-independent Directors and the Board as a whole and the
Chairperson of the Company. The Code also mentioned that the performance
Terms of reference evaluation of independent Directors shall be done by the entire Board of
i) To formulate the criteria for determining qualifications, positive attributes Directors, excluding the Director being evaluated.
and independence of a director and recommend to the Board a policy,
relating to the remuneration for the directors, key managerial personnel and The Company with the approval of its Board Nomination and Remuneration
other employees. Committee has put in place an evaluation framework for evaluation of the Board,
Directors and Chairperson. The Board also carries out an evaluation of the
ii) To consider and approve employee stock option schemes and to administer working of its Audit Committee, Board Nomination & Remuneration Committee,
and supervise the same. Risk Management Committee, Investment Committee, Policyholder Protection
iii) To identify persons who are qualified to become directors and who may be Committee, Corporate Social Responsibility Committee, Stakeholders
appointed in senior management in accordance with the criteria laid down, Relationship Committee and Strategy Committee.
recommend to the Board their appointment and removal, and formulate a The evaluation of the Committees is based on the assessment of the compliance
criteria for evaluation of every director’s performance. with the terms of reference of the Committees. The evaluations was done
iv) To consider whether to extend or continue the term of appointment of the through circulation of four questionnaires, one for the Directors, one for the
independent director, on the basis of the report of performance evaluation Chairperson, one for the Board and one for the Committees, which assessed the
of independent directors. performance of the Board on select parameters related to roles, responsibilities
v) To approve the compensation programme and to ensure that remuneration and obligations of the Board and functioning of the Committees including
to directors, key managerial personnel and senior management involves assessing the quality, quantity and timeliness of flow of information between
a balance between fixed and incentive pay reflecting short and long term the Company’s management and the Board that is necessary for the Board to
performance objectives appropriate to the working of the Company and its effectively and reasonably perform their duties. The evaluation criteria for the
goals. Directors were based on their participation, contribution and offering guidance
to and understanding of the areas which are relevant to them in their capacity
vi) 
To ensure that the proposed appointments/re-appointments of key as members of the Board.
managerial personnel or directors are in conformity with the Board
approved policy. Familiarisation Programme for Independent Directors
vii) 
To recommend re-constitution of board constituted committees to the Independent Directors are provided every opportunity to familiarise themselves
Board. with the strategy, industry overview, performance, key regulatory developments

291
 directors’ report
to the members
and on their role, rights and responsibilities as a Director. Induction programmes
are organised for every new Director wherein the Director is given an overview
of the Company, its vision and mission, the industry in which it operates, its
business, strategies, risk management, organisation structure and other areas
of relevance. The details of the familiarisation programmes have been hosted
on the website of the Company and can be viewed at https://www.icicilombard.
com/docs/default-source/default-document-library/familiarisation-programme.pdf
ii) Audit Committee
Terms of reference
i) Accounts and Audit:
a. Oversee the financial statements, financial reporting process under Indian
GAAP and US GAAP, statement of cash flow and disclosure of its financial
information, both on an annual and quarterly basis, to ensure that the
financial statement is correct, sufficient and credible.
b. Recommend the appointment, re-appointment, terms of appointment and,
if required, the replacement or removal; remuneration, reviewing (with
management) performance, and oversight of the work of the auditors
(internal/statutory/concurrent) and to review and monitor the auditor’s
independence and performance, and effectiveness of audit process.
c. Evaluation of internal financial controls and risk management systems.
d. Discuss with the statutory auditors before the audit commences, about the
nature and scope of audit, as well as, have post-audit discussions to address
areas of concern.
e. Approval of payment to statutory auditors and internal auditors or any of its
associated persons or companies, for any other services rendered by them.
f. 
Reviewing, with the management, the annual financial statements and
auditor’s report thereon before submission to the Board for approval, with
particular reference to:
 Matters required to be included in the director’s responsibility statement
to be included in the board’s report in terms of the Section 134(3)(c) of
the Companies Act, 2013.
 Changes, if any, in accounting policies and practices and reasons for the
same.
 Major accounting entries involving estimates based on the exercise of
judgment by management.
 Significant adjustments made in the financial statements arising out of
audit findings.
 Compliance with listing and other legal requirements relating to financial
statements to the extent applicable.
 Approval or any subsequent modification and disclosure of any related
party transactions of the Company. Provided that the Audit Committee
may grant omnibus approval for related party transactions proposed to
be entered into by the Company subject to such conditions as may be
prescribed.
 Modified opinion(s) in the draft audit report.
g. 
Reviewing, with the management, the quarterly, half-yearly and annual
financial statements before submission to the Board for approval.
h. To the extent applicable, review with the management, the statement of
uses/end use/application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.) and related matter, the statement of
funds utilised for purposes other than those stated in the offer document/
prospectus/notice and the report submitted by the monitoring agency
monitoring the utilisation of proceeds of a public or rights issue, and making
appropriate recommendations to the Board to take up steps in this matter.
i. Scrutiny of inter-corporate loans and investments, if any.
j. 
Valuation of undertakings or assets of the Company, wherever it is
necessary.
k. Oversight of the procedures and processes established to attend to issues
relating to maintenance of books of account, administration procedures,
transactions and other matters having a bearing on the financial position of
the Company, whether raised by the auditors or by any other person.
l. Carrying out any other function, if any, as is mentioned in the terms of
reference of the Audit Committee and any other terms of reference as may
be decided by the Board and/or specified/provided under the Companies
Act, 2013 or the Listing Regulations, or by any other regulatory authority.
ii) Internal Audit:
a. Review the adequacy of internal audit function, if any, including the structure
of the internal audit department, staffing and seniority of the official heading
the department, reporting structure, coverage and frequency of internal
audit.
Oversee the efficient functioning of the internal audit department and
b. 
review its reports. The Committee would additionally monitor the progress
made in rectification of irregularities and changes in processes wherever
deficiencies have come to notice.
292
Continued
c. 
Set-up procedures and processes to address all concerns relating to
adequacy of checks and control mechanisms.
d. Discussion with internal auditors of any significant findings and follow up
there on.
e. Review the findings of any internal investigations by the internal auditors
into matters where there is suspected fraud or irregularity or a failure of
internal control systems of a material nature and reporting the matter to the
Board.
f. Review with the management, performance of internal auditors, and the
adequacy of the internal control systems.
g. Look into the reasons for substantial defaults in the payment, if any, to the
depositors, debenture holders, shareholders (in case of non-payment of
declared dividends) and creditors.
h. Review the functioning of the whistle blower/vigil mechanism.
iii) Compliance and Ethics:
a. Review reports on the above and on proactive compliance activities aimed
at increasing the Company’s ability to meet its legal and ethical obligations,
on identified weaknesses, lapses, breaches or violations and the controls
and other measures in place to help detect and address the same.
b. Discuss the level of compliance in the Company and any associated risks
and to monitor and report to the Board on any significant compliance
breaches.
c. 
Supervise and monitor matters reported using the Company’s whistle
blowing or other confidential mechanisms for employees and others to
report ethical and compliance concerns or potential breaches or violations.
d. Review of policy on appointment of insurance agents.
e. 
To review and recommend appropriate policy to the Board as may be
prescribed by IRDAI from time to time.
f. Review key transactions involving conflict of interest.
g. Monitor the directives issued/penalties imposed/penal action taken against
the Company under various laws and statutes and action taken for corrective
measures.
h. Approval of appointment of Chief Financial Officer or any other person
heading the finance function or discharging that function after assessing the
qualifications, experience and background, etc. of the candidate.
i. 
To act as Compliance Committee to discuss level of compliance in the
Company including the Company’s code of ethics or conduct and any
associated risks and to monitor and report to the Board on any significant
compliance breaches.
Composition
The Audit Committee (the Committee) comprises of four non-executive
Directors, three of whom are independent Directors. The Committee is chaired
by Ashvin Parekh, a non-executive independent Director of the Company.
The composition of the Committee is given below along with the attendance of
the members. The Committee met seven times in the year under review on April
17, 2017, July 3, 2017, July 18, 2017, August 14, 2017, August 24, 2017, October
17, 2017 and January 16, 2018.
Attendance record of the Members:
Name of Member Number of Meetings attended
Ashvin Parekh, Chairman 7/7
Lalita D. Gupte 5/7
Uday Chitale 6/7
N. S. Kannan 4/5
S. Mukherji* 1/1
*Ceased to be Member with effect from July 3, 2017.
The Board of Directors at its Meeting held on July 3, 2017 re-constituted the
Audit Committee pursuant to which N. S. Kannan was appointed as a member
of the Committee.
iii) Investment Committee
Terms of reference
i) Overseeing the implementation of the investment policy approved by the
Board from time to time.
ii) Reviewing the investment policy.
iii) Periodically updating to the Board with regard to investment activities of the
Company.
iv) Reviewing the investment strategies adopted from time to time and giving
suitable directions as needed in the best interest of the Company.
v) Reviewing the broker policy and making suitable amendments from time to
time.
vi) Reviewing counter party/intermediary exposure norms.
directors’ report
to the members Continued
vii) 
Supervising the asset allocation strategy to ensure financial liquidity, Name of Member Number of Meetings attended
security and diversification through Ved Prakash Chaturvedi 2/3
viii) 
Overseeing the assessment, measurement and accounting for other Suresh Kumar 4/4
than temporary impairment in investments in accordance with the policy N. S. Kannan 3/3
adopted by the Company. Bhargav Dasgupta 4/4
ix) Reviewing the stewardship policy of the Company. S. Mukherji* 1/1
R. Athappan# 0/1
Composition
The Investment Committee (the Committee) comprises of two non-executive *Ceased to be Member with effect from July 3, 2017.
Directors, one wholetime Director, the Appointed Actuary of the Company, the # Ceased to be Member with effect from June 8, 2017.
Chief-Investments and the Chief Financial Officer. The Committee is chaired by The Board of Directors at its Meeting held on July 3, 2017, re-constituted the
N. S. Kannan, a non-executive non-independent Director of the Company. Risk Management Committee pursuant to which N. S. Kannan and Ved Prakash
The composition of the Committee is given below along with the attendance of Chaturvedi were appointed as Members of the Committee.
the members. The Committee met four times in the year under review on April
17, 2017, July 19, 2017, October 16, 2017 and January 15, 2018. v) Policyholder Protection Committee
Terms of reference
Attendance record of the Members: i) Putting in place proper procedures and effective mechanism to address
Name of Member Number of Meetings attended complaints and grievances of policyholders including mis-selling by
N. S. Kannan, Chairman 4/4 intermediaries.
Suresh Kumar 3/3 ii) Ensuring compliance with the statutory requirements as laid down in the
Chandran Ratnaswami* 0/1 regulatory framework
Bhargav Dasgupta 4/4
iii) Reviewing the mechanism at periodic intervals.
J. V. Prasad, Appointed Actuary 4/4
S. Gopalakrishnan, Chief Investment Officer 4/4 iv) Ensuring adequacy of “material information” to the policyholders to comply
Gopal Balachandran, Chief Financial Officer 4/4 with the requirements laid down by the authority both at the point of sale
and periodic intervals.
*Ceased to be Member with effect from July 2, 2017.
v) Reviewing the status of complaints at periodic intervals.
The Board of Directors at its Meeting held on July 3, 2017 re-constituted the
Investment Committee pursuant to which Suresh Kumar was appointed as a Details of grievance at periodic intervals in such formats as may be
vi) 
member of the Committee. prescribed by the authority.
vii) Providing details of insurance ombudsman to the policyholders.
iv) Risk Management Committee
viii) Monitoring of payments of dues to the policyholders and disclosure of
Terms of reference
unclaimed amount thereof.
Assisting the Board in effective operation of the risk management
i) 
programme by performing specialised analysis and quality reviews. ix) Review of regulatory reports to be submitted to various authorities.
ii) Reporting to the Board details on the risk exposures and the actions taken to x) To review the standard operating procedures for treating the customer
manage the exposures. fairly including time-frames for policy and claims servicing parameters and
iii) Advising to the Board with regard to risk management decisions in relation monitoring implementation thereof.
to strategic and operational matters. xi) To review the framework for awards given by Insurance Ombudsman/
iv) Review of the Company’s risk management and operational risk related Consumer Forums. Analyse the root cause of customer complaints, identify
policies/frameworks. market conduct issues and advise the management appropriately about
v) Review of status update on deviation cases under framework on IIB rates. rectifying systemic issues, if any.
vi) To review the Company’s risk-reward performance to align with overall To review all the awards given by Insurance Ombudsman/Consumer
xii) 
policy objectives. Forums remaining unimplemented for more than three (3) months with
vii) To review the solvency position of the Company on a regular basis. reasons therefore and report the same to the Board for initiating remedial
action, where necessary.
viii) To monitor and review regular updates on business continuity.
To review and recommend appropriate policy including establishment
ix)  xiii) To review claim report including status of outstanding claims with ageing of
of effective risk management framework, risk management policy and outstanding claims.
processes, to the Board as may be prescribed by IRDAI from time to time. xiv) To review repudiated claims with analysis of reasons.
x) To review the Company’s risk management and operational risk related
policies/frameworks including fraud monitoring policy and framework and Composition
anti-fraud policy and framework and monitoring implementation of antifraud The Policyholder Protection Committee (the Committee) has been formed in
policy for effective deterrence, prevention, detection and mitigation of accordance with the Corporate Governance Guidelines issued by IRDAI. It
frauds. comprises of three non-executive Directors and one wholetime Director. The
xi) To maintain a group-wide and aggregated view on the risk profile of the Committee is chaired by Ashvin Parekh, a non-executive independent Director
Company in addition to the solo and individual risk profile for all categories of the Company.
of risk including insurance risk, market risk, credit risk, liquidity risk,
The composition of the Committee is given below along with the attendance of
operational risk, compliance risk, legal risk, reputation risk, etc.
the members. The Committee met four times in the year under review on April
xii) 
To carry out any other function, if any, as prescribed in the terms of 17, 2017, July 18, 2017,October 16, 2017 and January 15, 2018.
reference of the Risk Management Committee and any other terms of
reference as may be decided by the Board and/or specified/provided under Attendance record of the Members:
the Listing Regulations, as amended, or by any other regulatory authority.
Name of Member Number of Meetings attended
Composition Ashvin Parekh, Chairman 4/4
The Risk Management Committee (the Committee) has been formed in Ved Prakash Chaturvedi 3/4
accordance with the Corporate Governance Guidelines issued by the Insurance N. S. Kannan$ 3/3
Regulatory and Development Authority of India (IRDAI). It comprises of seven Bhargav Dasgupta 4/4
directors out of which six are non-executive Directors and one wholetime S. Mukherji* 1/1
Director of the Company. The Committee is chaired by Lalita D. Gupte, a non- Chandran Ratnaswami# 0/1
executive independent Director of the Company.
*Ceased to be Member with effect from July 3, 2017.
The composition of the Committee is given below along with the attendance of
the members. The Committee met four times in the year under review on April #Ceased to be Member with effect from July 2, 2017.
17, 2017, July 18, 2017, October 16, 2017 and January 15, 2018. $ The Board of Directors at its Meeting held on July 3, 2017, re-constituted
the Policyholder Protection Committee pursuant to which N. S. Kannan was
Attendance record of the Members: appointed as a Member of the Committee.
Name of Member Number of Meetings attended $
The Board of Directors at its Meeting held on April 25, 2018, re-constituted the
Lalita D. Gupte, Chairperson 3/3 Policyholder Protection Committee pursuant to which N. S. Kannan ceased to
Uday Chitale 4/4 be a member of the Committee.
Ashvin Parekh 4/4

293
 directors’ report
to the members Continued
vi) Corporate Social Responsibility Committee Number of Complaints
Terms of reference During the year, the Company/its Registrar received the following complaints from
i) Formulation of corporate social responsibility policy indicating the activities SEBI/Stock Exchanges/Depositories which were resolved within the time frames
to be undertaken by the Company. laid down by SEBI.

ii) Recommend to the Board the amount of expenditure to be incurred on the Details Shareholders Complaints:
corporate social responsibility activities. SR. Particulars NO.
iii) Monitor the corporate social responsibility policy of the Company from NO.
time to time. 1. No. of investor complaints pending as on September 27, 2017# 0
2. No. of investor complaints received during the year ended on 13*
Composition March 31, 2018
The Corporate Social Responsibility Committee (the Committee) has been 3. No. of investor complaints resolved during the year ended March 12
formed in accordance with the provisions of the Companies Act, 2013. It 31, 2018
comprises of two non-executive Directors and one wholetime Director. The 4. No. of investor complaints pending as on March 31, 2018 1
Committee is chaired by Uday Chitale, a non-executive independent Director.
Note: * Out of 13 complaints, 1 complaint was received by the Company on March
28, 2018 and the complaint was addressed by the Company on March 30, 2018.
The composition of the Committee is given below along with the attendance of
However the complaint is pending for closure with SEBI.
the members. The Committee met twice in the year under review on April 17,
2017 and July 18, 2017. # Date of Listing

Attendance record of the Members: viii) Strategy Committee

Name of Member Number of Meetings attended Terms of reference
Uday Chitale, Chairman 2/2 Evaluation of various strategic opportunities including acquisitions/divestitures
Ved Prakash Chaturvedi 2/2 and other strategic initiatives for the Company.
N. S. Kannan$ 1/1
Composition
Bhargav Dasgupta 2/2 The Strategy Committee comprises of three non-executive Directors and one
S. Mukherji* 1/1 wholetime Director. The Committee is chaired by Uday Chitale, non-executive
R. Athappan# 0/1 independent Director of the Company.
*Ceased to be Member with effect from July 3, 2017. The composition of the Committee is given below along with the attendance of
#Ceased to be Member with effect from June 8, 2017. the members. The Committee met twice in the year under review on November 7,
2017 and February 16, 2018.

$
The Board of Directors at its Meeting held on July 3, 2017 re-constituted the
Corporate Social Responsibility Committee pursuant to which N. S. Kannan was Attendance record of the Members:
appointed as Member of the Committee.
Name of Member Number of Meetings attended

$
The Board of Directors at its Meeting held on April 25, 2018 re-constituted
Uday Chitale, Chairman 2/2
the Corporate Social Responsibility Committee pursuant to which N. S. Kannan
ceased to be a Member of the Committee. Ashvin Parekh 2/2
N. S. Kannan 2/2
vii) Stakeholders Relationship Committee
Bhargav Dasgupta 2/2
Terms of reference
Consider and resolve grievances of security holders of the Company,
i)  III. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION
including complaints related to transfer of shares, non-receipt of annual The Company with the approval of its Board Nomination and Remuneration Committee
report and non-receipt of declared dividends. (Committee) has put in place a policy on Director’s appointment and remuneration
ii) Investigating complaints relating to allotment of shares, approval of transfer including criteria for determining qualifications, positive attributes and independence
or transmission of shares, debentures or any other securities; of a Director as well as a policy on Board Diversity.
iii) Issue of duplicate certificates and new certificates on split/consolidation/ The Board at its Meeting held on January 14, 2010 had approved adoption of Policy
renewal; on appointment and compensation of employees (including Whole-time Directors,
iv) Redemption of securities and the listing of securities on stock exchanges; KMPs and senior management). The sitting fee payable to independent Directors (other
than non-exective non-independent Directors) as prescribed under the Companies Act,
v) Allotment of shares and securities; and 2013 for attending Board and Committee Meetings was approved by the Board at its
Carrying out any other function as may be decided by the Board or
vi)  Meeting held on April 18, 2014. Further the Board at the Board Meeting held on March
prescribed under the Companies Act, 2013, the Listing Regulations, or by 31, 2015 approved the criteria for appointment of a Director, key managerial personnel
any other regulatory authority. and senior management. The Compensation Guidelines forming part of the Policy on
appointment and compensation of employees and framework for Remuneration to
Composition non-executive Directors was approved by the Board Nomination and Remuneration
The Stakeholders relationship Committee (the Committee) has been formed in Committee at its Meeting held on October 18, 2016.
accordance with the provisions of the Companies Act, 2013. It comprises of two
The remuneration payable to independent Directors is governed by the provisions
non-executive Directors and two wholetime Directors. The Committee is chaired
of the Companies Act and related rules to the extent applicable and IRDAI guidelines
by Suresh Kumar, a non-executive independent Director of the Company.
issued in this regard. The remuneration for the independent directors would be
The composition of the Committee is given below along with the attendance sitting fee for attending each meeting of the Committee/Board as approved by the
of the members. The Committee met two times in the year under review on Board from time to time within the limits as provided under the Companies Act and
October 17, 2017 and January 15, 2018. related rules. IRDAI vide its guidelines dated August 5, 2016 has permitted payment of
profit related commission upto ` 1,000,000/- per annum for non-executive Directors,
Attendance record of the Members: effective from October 1, 2016. The Board at its Meeting held on October 18, 2016
Name of Member Number of Meetings attended approved the payment of profit related commission upto ` 750,000/- per annum to
Suresh Kumar, Chairman 2/2 non-executive independent directors of the Company, which was approved by the
N. S. Kannan# 2/2 shareholders in the Extra-ordinary General Meeting held on November 10, 2016.
Bhargav Dasgupta 2/2 All the non-executive/independent Directors would be entitled to reimbursement of
Sanjeev Mantri 2/2 expenses for attending Board/ Committee Meetings, official visits and participation in
Ved Prakash Chaturvedi# N.A. various forums on behalf of the Board.
#
The Board of Directors at its Meeting held on April 25, 2018 re-constituted IV. INDEPENDENT DIRECTOR’S MEETING
the Stakeholders’ Relationship Committee pursuant to which Ved Prakash The code of conduct for independent Directors prescribed vide Schedule IV of
Chaturvedi was appointed as a Member of the Committee while N. S. Kannan the Companies Act, 2013, provides for an evaluation mechanism for the Board/
ceased to be a member of the Committee. Chairperson/ Non-executive Directors/Whole-time Directors which would need to be
done at a separate Meeting of independent Directors, without the attendance of Non-
Vikas Mehra, Company Secretary also acts as the Compliance Officer of the independent Directors and members of management.
Company.

294
directors’ report
to the members Continued
Independent Directors of the Company met on April 18, 2017 without the presence Remuneration disclosures pursuant to IRDA guidelines
of wholetime Directors, non-executive non-independent Directors and management Pursuant to IRDAI guidelines on Remuneration of Non-executive Directors and Managing
personnel to discuss the framework for evaluation of Directors. They also have a Director/Chief Executive Officer/Whole Time Directors of Insurers (IRDAI Guidelines) issued
separate Meeting every quarter with the non-executive Chairperson, without any vide reference no. IRDA/F&A/GDL/LSTD/155/08/2016 dated August 5, 2016 requires the
of the wholetime Directors being present, to discuss issues and concerns, if any. Company to make the following disclosures on remuneration on an annual basis in their
Annual Report:
V. DETAILS OF MANAGERIAL REMUNERATION FOR FY2018:
(i) Whole-time Directors: Compensation Policy and Practices
 The Board based on the recommendation of the Board Nomination and (i) Qualitative Disclosures
Remuneration Committee approved revision in the remuneration, performance a) Information relating to the design and structure of remuneration processes
bonus and long term performance pay, payable to the wholetime Directors.
In terms of provisions of Insurance Amendment Act, 2015, prior approval of 1. Key features and objectives of remuneration policy
IRDAI is obtained to effect the remuneration of wholetime Directors. The Company has under the guidance of the Board and the Board Nomination
and Remuneration Committee (BNRC), followed compensation practices
The details of remuneration of wholetime Directors’ for FY2018 are as under: intended to drive meritocracy and fairness. The twin pillars of performance
management and talent management system are closely intertwined with the
Particulars Details of Remuneration (` in millions) compensation, benefits and reward mechanism of the Company. While the
Bhargav Alok Kumar Sanjeev Company will strive to ensure internal and external equity that are consistent
Dasgupta Agarwal Mantri with emerging market trends, its business model and affordability based
Salary as per provisions contained on business performance sets the overarching boundary conditions. This
in section 17(1) of the Income-tax approach has been incorporated in the Compensation Policy, the key elements
Act, 1961 of which are given below:
Salary and Allowances for FY2018 36.25 21.45 22.23
Variable pay paid in FY2018 14.24 7.64 7.72  Effective governance of compensation:
including deferred variable pay for The BNRC has oversight over compensation. The Committee defines
previous years 1 Key Performance Indicators (KPIs) for Wholetime Directors and the
Value of perquisites u/s 17(2) organisational performance norms for bonus based on the financial and
Income-tax Act, 1961 strategic plan approved by the Board. The KPIs include both quantitative
and qualitative aspects. The BNRC assesses organisational performance
Perquisites2 0.35 0.03 1.18
as well as the individual performance for WTDs. Based on its assessment,
Profits in lieu of salary under - - -
it makes recommendations to the Board regarding compensation for
section 17(3) Income-tax Act, 1961
WTDs and bonus for employees, including senior management and key
Stock Options–ICICI Bank (nos) 3
753,500 99,770 303,050
management personnel.
Sweat Equity - - -
Commission - as % of profit - - - -  Alignment of compensation philosophy with prudent risk taking:
others, specify The Company seeks to achieve a prudent mix of fixed and variable pay,
Others-Retirals (PF) 2.43 1.14 1.28 with a higher proportion of variable pay at senior levels and no guaranteed
Note: For the year-ended March 31, 2018 the numbers indicated are the bonuses. Compensation is sought to be aligned to both financial and
amounts paid/options granted during the year FY2018 as per IRDAI approvals. nonfinancial indicators of performance including aspects like risk
management and customer service. In addition, being group company
1. 
The Variable pay includes deferred variable pay of previous years as
of ICICI Bank, the Company has an employee stock option scheme
approved by IRDAI and paid during FY2018.
aimed at aligning compensation to long term performance through stock
2. Value of perquisites exclude stock options exercised during FY2018 which option grants and deferred cash that vest over a period of time to senior
does not constitute remuneration paid to the Whole Time Directors for management and WTDs. Compensation to staff in financial and risk control
FY2018. functions is independent of the business areas they oversee and depends
3. Pursuant to the issuance of bonus shares by the ICICI Bank under ICICI on their performance assessment.
Bank ESOS scheme on June 24, 2017, the share-linked instruments
have been adjusted with increase of one option for every 10 outstanding 2. Whether the Remuneration Committee reviewed the firm’s remuneration
options. policy during the past year, and if so, an overview of any changes that were
Provisions towards gratuity, leave accrued and long term performance pay made
are determined actuarially on an overall basis and accordingly have not been The Company’s Remuneration Policy was reviewed by the BNRC and the
considered for the above disclosure. Board on April 18, 2017. The policy was amended to incorporate post retiral
benefit, domiciliary medical expense reimbursement and Company provided
(ii) Non-executive independent Directors: car facility.
Non-executive independent Directors are appointed for their professional
expertise in their individual capacity as professionals. Non-executive 3. Discussion of how the Company ensures that risk and compliance employees
independent Directors do not have any material pecuniary relationship with are remunerated independently of the businesses they oversee
the Company other than the sitting fees and profit related commission payable  The compensation of staff engaged in control functions like risk and
to them. As provided in the Articles of Association of the Company, the fees compliance depends on their performance, which is based on achievement of
payable to the non-executive independent Directors for attending a Meeting of the key results of their respective functions. Their goal sheets do not include
the Board or Committee thereof is decided by the Board of Directors from time any business targets.
to time within the limits prescribed by the Companies Act, 2013. The Board
of Directors have approved the payment of ` 100,000 as sitting fees for each b) Description of the ways in which current and future risks are taken into account
Meeting of Board and ` 20,000 as sitting fees for each Meeting of a Committee in the remuneration processes
attended for FY2018. This amount is within the limits prescribed as per Rule 4 1. 
Overview of the key risks that the Company takes into account when
of Companies (Appointment & Remuneration) Rules, 2014 of the Companies implementing remuneration measures
Act, 2013.  The Board approves the risk framework for the Company and the business
The details of sitting fees and commission paid to non-executive independent activities of the Company are undertaken within this framework to achieve the
Directors during FY2018 are as follows: financial plan. The risk framework includes the Company’s risk appetite, limits
framework and policies and procedures governing various types of risk. KPIs
Names of the Director Sitting fees Commission* of WTDs, as well as employees, incorporate relevant risk management related
(in `) (in `) aspects. For example, in addition to performance targets in areas such as
Ved Prakash Chaturvedi 1,140,000 750,000 growth and profits, performance indicators include aspects such as Combined
Uday Chitale 1,300,000 750,000 Ratio. The BNRC takes into consideration all the above aspects while assessing
Lalita D. Gupte 900,000 750,000 organisational and individual performance and making compensation-related
Suresh Kumar 1,180,000 750,000 recommendations to the Board.
Ashvin Parekh 1,360,000 750,000
2. Overview of the nature and type of key measures used to take account of
* Commission for FY2018 will be paid in FY2019. these risks, including risk difficult to measure
(iii) Non-executive non-independent Directors: The annual performance targets and performance evaluation incorporate both
Non-executive non-independent Directors were not paid any sitting fees qualitative and quantitative aspects including combined ratio, reserving and
and profit related commission during FY2018. refinement/improvement of the risk management framework.

295
 directors’ report
to the members
3. Discussion of the ways in which these measures affect remuneration
Every year, the financial plan/targets are formulated in conjunction with
a risk framework with limit structures for various areas of risk/lines of
business, within which the Company operates to achieve the financial plan.
To ensure effective alignment of compensation with prudent risk taking, the
BNRC takes into account adherence to the risk framework in conjunction
with which the financial plan/targets have been formulated. KPIs of WTDs,
as well as employees, incorporate relevant risk management related
aspects. For example, in addition to performance targets in areas such as
growth and profits, performance indicators include aspects such as the
combined ratio and reserving. The BNRC takes into consideration all the
above aspects while assessing organisational and individual performance
and making compensation-related recommendations to the Board.
4. Discussion of how the nature and type of these measures have changed
over the past year and reasons for the changes, as well as the impact of
changes on remuneration
The nature and type of these measures have not changed over the past year
and hence, there is no impact on remuneration.
c) Description of the ways in which the Company seeks to link performance
during a performance measurement period with levels of remuneration
1. 
Overview of main performance metrics for the Company, top level
business lines and individuals
 The main performance metrics include business growth, market share,
profits, strategic goals for future, risk metrics (such as combined ratio),
compliance with regulatory norms, refinement of risk management
processes and customer service. The specific metrics and weightages for
various metrics vary with the role and level of the individual.
2. Discussion of how amounts of individual remuneration are linked to the
Company-wide and individual performance
The BNRC takes into consideration all the above aspects while assessing
organisational and individual performance and making compensation-
related recommendations to the Board regarding the level of performance
bonus for employees and the performance assessment of WTDs. The
performance assessment of individual employees is undertaken based on
achievements vis-à-vis their goal sheets, which incorporate the various
aspects/metrics described earlier.
3. Discussion of the measures the Company will in general implement to
adjust remuneration in the event that performance metrics are weak,
including the Company’s criteria for determining ‘weak’ performance
metrics
The Company’s Compensation Policy outlines the measures the Company
will implement in the event of a reasonable evidence of deterioration in
financial performance. Should such an event occur in the manner outlined
in the policy, the BNRC may decide to apply malus/clawback on none, part
or all of the unvested deferred variable compensation.
(ii) Quantitative disclosures (WTD, CEO/MD)
The following table sets forth, for the period indicated, the details of quantitative
disclosure for remuneration of Wholetime Directors
At March
Particulars
31, 2018
Number of meetings held by the BNRC during the financial year 3 risk respectively. The risks are further monitored on a quarterly basis by using
Remuneration paid to its members during the financial year (in million)
5.86
(sitting fees)
Number of MD/CEO/WTDs having received a variable remuneration award during
3 and corrective action plans. The Risk Management Committee is updated on the
the financial year.
Number and total amount of sign-on awards made during the financial year Nil
Details of guaranteed bonus, if any, paid as joining/sign on bonus. Nil
Breakdown of amount of remuneration awards for the financial year
(` in million)
Fixed1 89.36
Variable2 46.67
Deferred 18.67
Non-deferred 28.00
Share-linked instruments2,3 11,56,320
Total amount of deferred remuneration paid out during the year
1.60
(in ` million)
Total amount of outstanding deferred remuneration
Cash (` in million) 19.24
Shares (nos.) Nil
Shares-linked instruments2 37,49,916
Other forms Nil
1. Fixed pay includes basic salary, supplementary allowances, superannuation,
contribution to provident fund and gratuity fund by the Company.
2. For the year ended March 31, 2018, variable pay and share-linked instruments
represent amounts paid/options awarded for the year ended March 31, 2017 as
per IRDA approval.
3. Pursuant to the issuance of bonus shares by the ICICI Bank under ICICI Bank
ESOS scheme on June 24, 2017, the share-linked instruments have been
adjusted with increase of one option for every 10 outstanding options.
296
Continued
VI. Internal Control
ICICI Lombard has adopted the following frameworks in accordance with the
requirements laid down under Corporate Governance Guidelines.
(i) Internal Audit Framework
ICICI Lombard has established an internal audit framework with a risk based
approach. The internal audit covers auditing of processes as well as transactions.
ICICI Lombard has designed its internal control framework to provide reasonable
assurance to ensure compliance with internal policies and procedures,
regulatory matters and to safeguard reliability of the financial reporting and its
disclosures. An annual risk-based internal audit plan is drawn up on the basis of
risk profiling of the businesses/departments of the Company which is approved
by the Audit Committee. The Board/Committee considers that the internal
control framework is appropriate to the business.
The Internal Audit Department’s key audit findings, recommendations and
compliance status of the previous key audit findings are reported to the Audit
Committee. The Audit Committee actively monitors the implementation of its
recommendations. The Chairman of the Audit Committee briefs the Board on
deliberations taken place at the Audit Committee Meeting in relation to the key
audit findings.
In accordance with IRDAI directives, the Company carries out a concurrent audit
of investment operations through a Chartered Accountant firm and reports the
findings to the Audit Committee.
(ii) Internal Controls over Financial Reporting
The Company has in place adequate internal financial controls commensurate
with size, scale and complexity of its operations. During the year, such controls
were tested and no reportable material weakness in the design or operations
were observed. The Company has policies and procedures in place for ensuring
proper and efficient conduct of its business, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records and the timely preparation of reliable financial
information.
(iii) Risk Management Framework
 The objective of the Risk Management Framework (the Framework) of the
Company is to ensure that various risks are identified, measured, mitigated and
that policies, procedures and standards are established to address these risks
for systemic response and adherence.
The Company has identified enterprise wide risks, which are categorised under
5 broad groups namely Credit Risk, Market Risk, Underwriting Risk, Operational
Risk and Strategic Risk. The broad structure of the Framework is as follows:
 Risk identification, assessment and mitigation process;
 Risk management and oversight structure; and
 Risk monitoring and reporting mechanism.
As part of the Enterprises Risk Management exercise, critical risks along with the
detailed mitigation plan are presented to the Risk Management Committee on a
quarterly basis. The risk mitigation plans are monitored regularly by the Company
to ensure their timely and appropriate execution. The Company further measures
each of its risk items against a set of predefined tolerance levels. These levels
and the subsequent tolerance scores are classified as high, medium and low
a heat map based on probability and severity. A Risk Register is maintained to
capture inventory of risks that the Company is exposed to along with mitigation
progress on a quarterly basis.
The senior management of the Company is responsible for periodic review of
the risk management process to ensure that the process initiatives are aligned
to the desired objectives. The Internal Audit Department is responsible for
review of risk management processes within the Company and for the review
of self-assessments of risk management activities. Further, compliance testing is
done on a periodic basis and the Risk Management Committee is kept appraised
of the outcome of the same.
The Company’s Reinsurance Program defines the retention limit for various
classes of products. Further, the Company has in place a risk retention
reinsurance philosophy, which defines the product-wise retention limits on a
per-risk basis as well as a retention limit on a per-event basis. The Underwriting
Policy defines product-wise approval limits for various underwriters. The
Investment Policy lays down the asset allocation strategy to ensure financial
liquidity, security and diversification. The Company also has in place a Capital
Adequacy and Liquidity Management Framework and an Asset Liability
Management Policy. These policies ensure maintenance of adequate level of
capital at all times to meet diverse risk related to market and operations. The
Operational Risk Policy defines the tolerance limits and lays down the framework
for monitoring, supervision, reporting and management of operational risks of
the Company. The Company has also adopted the Information Security Policy
and Cyber Security Policy in line with the Group Information Security Policy and
the Guidelines issued by the regulator on Information & Cyber Security.
directors’ report
to the members Continued
Stress testing is conducted to identify and quantify the overall impact of The Company’s investor relations personnel respond to specific queries and
different stress scenarios on the Company’s financial position. These tests do play a proactive role in disseminating information to both analysts and investors.
not predict what will happen, but are useful for examining what might happen. All information which could have a material bearing on the Company’s share
The Company has received a Certificate of Compliance for successfully price is released through as per regulatory requirements. The information is
completing the ISO 31000:2018 compliance process for its Enterprise Risk also disseminated to the National Stock Exchange of India Limited (NSE) and
Management (ERM). It is the first Indian company to be certified by the British BSE Limited (BSE) from time to time.
Standard Institution (BSI) for acting in accordance with the revised guidelines The financial and other information and the various compliances as required/
that were released in February 2018. prescribed under the Listing Regulations are filed electronically with NSE
The Risk Management Framework of the Company is overseen by the Risk and BSE through NSE Electronic Application Processing (NEAP) System
Management Committee of the Board. The Company has a Chief Risk Officer and through BSE Listing Centre and are also available on their respective
who is responsible for the implementation and monitoring of the framework. websites in addition to the Company’s website. Additionally information is also
disseminated to BSE/NSE where required by email or fax.
VII. General Body Meetings: The Company’s quarterly financial results are published in the Financial Express
i) Annual General Meetings (Mumbai, Pune, Ahmedabad, Lucknow, Delhi, Calcutta, Chandigarh, Chennai,
The details of the Annual General Meetings held in previous three financial Bangalore, Hyderabad, Cochin edition) and Loksatta (Mumbai edition). The
years are given below: financial results, official news releases, analyst call transcripts and presentations
are also available on the Company’s website.
Annual General Day, Date Time Venue
Meeting iv) Management Discussion and Analysis Report
Seventeenth AGM Monday, July 3.30 p.m. ICICI Bank Limited, ICICI Bank  Pursuant to Regulation 34 of the Listing Regulations, the Management
10, 2017 Towers, Bandra Kurla Complex, Discussion and Analysis Report for the year under review, is presented in a
Bandra (East), Mumbai 400 051 separate section, forming part of the Annual Report.
Sixteenth AGM Friday, July 1, 11.00 a.m. ICICI Lombard House, 414, Veer
v) Business Responsibility Reporting
2016 Savarkar Marg, Prabhadevi,
In accordance with the Listing Regulations, the Business Responsibility Report
Fifteenth AGM Thursday, 11.00 a.m. Mumbai 400 025
June 25, 2015 (BRR) has been hosted on the Company’s website and can be viewed at
https://www.icicilombard.com/docs/default-source/financialreports/business-
The details of the Special Resolutions passed in the Annual General Meetings responsibility-report.pdf. Members who wish to receive a physical copy of the
held in previous three financial years are given below:- BRR are requested to write to the Company.
General Body Day and Date Resolution vi) General Shareholder Information
Meeting
Annual General Monday, July 1. 
Amendment to Articles of Association of Registration No. 11-129408
Meeting 10, 2017 the Company. Corporate Identification Number (CIN) L67200MH2000PLC129408
Revision of ICICI Lombard General
2.  Financial Year 2017-18
Insurance Company Limited Employee Board meeting for adoption of Audited April 25, 2018
Stock Option Scheme 2005. Financial Accounts
3. 
To permit foreign portfolio investors) Day, Date and Time of 18th Annual General July 12, 2018
registered with SEBI to acquire and hold Meeting
equity shares of the Company under the Venue Swatantrya Veer Savarkar
foreign portfolio investment scheme or any Auditorium, 252, Shivaji Park, Dadar
other permissible mode under FEMA up to (West), Mumbai - 400028
an aggregate limit of 49% of the paid-up Financial Year April 1-March 31
equity share capital of the Company. Book Closure Friday, July 6, 2018 to Thursday,
Annual General Friday, July 1, - July 12, 2018
Meeting 2016 Date of Dividend Payment On or before August 10, 2018
Annual General Thursday, - Company’s Website www.icicilombard.com
Meeting June 25, 2015
vii) Listing of Equity Shares and Non-Convertibe Debentures on Stock Exchanges
Note: During FY2017 no postal ballot was conducted Currently, the Equity Shares and Non-convertible Debentures issued by the
ii) Details of the orders passed by the Regulators/Courts/Tribunals during the Company are listed at
year Stock Exchange Code for ICICI Lombard
 The Company in its ordinary course of business receives order from
Equity Non-
Regulators/Courts/Tribunals. There are no significant material orders passed
Convertible
by the Regulators/Courts/Tribunals which would impact the going concern
Debentures
status of the Company and its future operations.
BSE Limited (BSE) 540716 954492
iii) Means of Communication Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai - 400001.
It is the Company’s belief that all stakeholders should have access to complete National Stock Exchange of India Limited (NSE) ICICIGI ILGI26
information regarding its position to enable them to accurately assess its Exchange Plaza, 5th Floor, Plot C/1, G Block, Bandra-
future potential. The Company disseminates information on its operations Kurla Complex, Bandra (East), Mumbai - 400051.
and initiatives on a regular basis. The Company’s website (www.icicilombard. The Company has paid annual listing fees for the relevant periods to BSE and NSE
com) serves as a key awareness facility for all its stakeholders, allowing where its Equity Shares and Non-Convertible Debentures are listed.
them to access information at their convenience. It provides comprehensive
information on the Company’s strategy, financial performance, operational
performance and the latest press releases.

viii) Market Price Information

The reported high and low closing prices and volume of Equity shares of the Company traded on BSE and NSE during the period since the Company is listed (i.e. from
September 27, 2017 till March 31, 2018):
Month BSE NSE Total Volume on
High (`) Low (`) Volume High (`) Low (`) Volume BSE & NSE
2017
September 694.00 638.15 6,941,343 694.00 638.65 40,513,855 47,455,198
October 719.85 619.00 1,925,482 723.00 663.00 11,976,457 13,901,939
November 725.00 666.10 556,974 726.05 667.65 4,359,385 4,916,359
December 808.00 708.00 678,323 810.00 708.10 4,953,851 5,632,174
2018
January 872.00 771.00 745,232 872.00 770.10 6,786,385 7,531,617
February 838.00 765.05 1,100,496 839.00 749.30 4,904,537 6,005,033
March 827.00 701.40 519,538 836.15 707.20 8,108,254 8,627,792

297
 directors’ report
to the members Continued
ix) Share Transfer System b. Shareholders of the Company with more than 1% holding as on March 31, 2018
The Company’s Registrar and Transfer Agent (RTA) is Karvy Computershare (other than Promoter of the Company):
Private Limited (Karvy). The address of the RTA is as follows: Sr. Name No. of % of total
Karvy Selenium Tower B, No. shares Number of
Plot 31-32 Gachibowli, shares
1. FAL Corporation 44,978,770 9.91
Financial District Nanakramguda 2. Red Bloom Investment Ltd 40,889,791 9.01
Hyderabad 500 032, 3. Tamarind Capital PTE Ltd 7,211,596 1.59
4. Motilal Oswal Most Focused Dynamic Equity 6,946,745 1.53
Tel: (91 40) 6716 2222,
Fund
Fax: (91 40) 2300 1153 5. Kotak Mahindra Balance Unit Scheme 99 5,224,584 1.15
During the year the Company has change its Share Transfer Agent to Karvy c. Distribution of shareholding of the Company as on March 31, 2018:
Computershare Private Limited from 3i Infotech Limited.
Sr. Distribution Schedule As on 31/03/2018
x) Registrar and Transfer Agents No. Category No. of Cases % of Cases Amount (`) % of
The Registrar and Transfer Agent of the Company is Karvy Computershare Private Amount
1. 1-5000 282371 98.97 129,698,930 2.86
Limited for Equity Shares and Link Intime India Private Limited for Non-convertible
2 5001-10000 1742 0.61 10,935,110 0.24
Debentures issued by the Company. Investor services related queries/requests/
3 10001-20000 408 0.14 5,916,860 0.13
complaints may be directed at the address as under:
4 20001-30000 132 0.05 3,330,670 0.07
5. 30001-40000 77 0.03 2,749,330 0.06
Equity Shares Non-convertible Debenture 6. 40001-50000 76 0.03 3,645,570 0.08
Karvy Computershare Private Limited Karvy Link Intime India Private Limited 7. 50001-100000 123 0.04 9,110,050 0.20
Selenium Tower B, 247, Lal Bahadur Shastri Marg, Survya 8. 100001 & Above 379 0.13 4,374,096,520 96.36
Plot 31-32 Gachibowli, Nagar, Gandhi Nagar, Vikhroli West,
Financial District Nanakramguda Mumbai - 400083
Hyderabad 500 032 Tel No. : +91-22-4918 6000 xii) Outstanding global depository receipts or american depository receipts or
Tel: (91 40) 6716 2222 Fax No. : +91-22-4918 6060 warrants or any convertible instruments, conversion date and likely impact
Fax: (91 40) 2300 1153 on equity:
E-mail: einward.ris@karvy.com This is not relevant to us, since the Company has not issued Global Depository
receipts or American Depository receipts or any convertible instruments.
BSE
xiii) Commodity price risk or foreign exchange risk and hedging activities:
37,000 820
This is not relevant to us as we do not have any derivatives or liabilities
36,000 800
denominated in foreign currency.
ICICI Lombard Price

780
35,000
760 xiv) Plant Locations
S & P Sensex

34,000 740 There are no plants as the Company is not a manufacturing entity.
33,000 720
32,000 700 xv) Correspondence Address
31,000 680 Correspondence relating to the financial performance of the Company may be
660 addressed to:
30,000
640
29,000 Vikas Mehra/Rakesh Sharma
620
28,000 600 ICICI Lombard General Insurance Company Limited
Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 414, Veer Savarkar Marg, Prabhadevi Mumbai 400 025
S & P Sensex ICICI Lombard Tel No. : +91-22-6196 1100 | Fax No. : +91-22-6196 1323
E-mail: investors@icicilombard.com

NSE xvi) Compliance Certificate of the Auditors

The Company has annexed to this report Annexure E, a certificate obtained from
11,200 820 the statutory auditors of the Company regarding compliance of conditions of
11,000 800 Corporate Governance as stipulated in SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
ICICI Lombard Price

10,800 780
10,600 760
10,400 740 xvii) Events after Balance Sheet date
Nifty 50

10,200 720 There have been no material changes and commitments, affecting the financial
10,000 700 position of the Company, which have occurred between the end of the financial
9,800 680 year of the Company to which the balance sheet relates and the date of this
9,600 660 report.
9,400 640
xviii) Debenture Trustees
9,200 620
Axis Trustee Services Limited
9,000 600
Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 2nd Floor, Wadia International Center,
Nifty 50 ICICI Lombard Pandurang Budhkar Marg,
xi) Information on Shareholding: Worli, Mumbai 400 025
a. Shareholding pattern of the Company as on March 31, 2018: VIII. Disclosures
Sl. Category/Name of Shareholder Number of % total 1. There are no materially significant related party transactions that may have
No. shares on potential conflict with the interest of the Company.
March 31, 2018 2. No penalties or strictures have been imposed on the Company by the Stock
1. ICICI Bank Ltd (Promoter) 253,843,806 55.92 Exchanges, the Securities & Exchange Board of India (SEBI) or any other
2 Domestic Mutual Funds 31,719,355 6.99 statutory authority, for any non-compliance on any matter relating to capital
3 Alternative Investment Funds 9,679,285 2.13 markets, during the last three years.
4 Foreign Institutional Investors/Foreign Portfolio 29,151,402 6.42 3. In terms of the Whistle Blower Policy of the Company, no employee of the
Investors Company has been denied access to the Audit Committee.
5. Domestic Banks 87,993 0.02
6. Indian Financial Institutions/NBFC/Trusts 1,233,328 0.27 IX. Adoption of Mandatory and Non-mandatory requirements
7. Bodies Corporate 5,141,616 1.13 The Company has complied with all mandatory requirements specified in Regulations
8. Foreign Corporate Bodies 93,080,157 20.50 17 to 27 and clauses (b) to (i) of sub regulation 2 of Regulation 46 and some of the
9. Public And Others 30,011,362 6.61 non-mandatory requirements pertaining to Corporate Governance stipulated under
the Listing Regulations.

298
directors’ report
to the members
The Company has adopted following non-mandatory requirements:
1. Separate post of chairperson and chief executive officer
The listed entity may appoint separate persons to the post of chairperson and
managing director or chief executive officer.
2. Reporting of internal auditor
The internal auditor may report directly to the audit committee
X. Web link where policy for determining material subsidiaries is disclosed
This is not applicable to us, as the Company doesn’t have any subsidiary Company
XI. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3)
of the Companies (Accounts) Rules, 2014 relating to conservation of energy and
technology absorption do not apply to ICICI Lombard. ICICI Lombard has, however,
used information technology extensively in its operations.
During FY2018, expenditures in foreign currencies amounted to ` 4.05 billion and
earnings in foreign currencies amounted to ` 1.98 billion.
XII. Employee Stock Option Scheme
In FY2006, ICICI Lombard had instituted an Employee Stock Option Scheme (ESOS)
to enable the employees and Directors of ICICI Lombard to participate in its future
growth and financial success. As per ESOS, the maximum number of options
granted to any employee/Director in a year shall not, except with the approval of
the Board, exceed 0.10% of ICICI Lombard’s issued equity shares at the time of grant
and the aggregate of all such options (net of forfeited/lapsed) is limited to 5% of ICICI
Lombard’s issued equity shares on the date of the grant.
The Board at its Meeting held on January 14, 2015 and the Shareholders at the
Extra-Ordinary General Meeting held on March 4, 2015 had approved an amendment
in the Employee Stock Option Scheme, 2005 to extend the exercise period by three
more years in respect of options granted in the years 2005, 2006 and 2007.
Options granted in the years 2005, 2006, 2007, 2008 and 2010 vest in a graded
manner over a four-year period, with 20%, 20%, 30% and 30% of the grants vesting
each year, commencing not earlier than 12 months from the date of grant. Options
granted the year 2009 vest in over a five year period with no vesting in the first year
and 20%, 20%, 30% and 30% of the grant vesting each year in the subsequent four
years. Options granted for the year 2011 vest over a two-year period, with 40% and
60% of the grants vesting each year, commencing not earlier than 12 months from
the date of grant. Options can be exercised within a period of 13 years in respect
of options granted in 2005, 2006 and 2007. Option other than those years can be
exercised over a period of 10 years from the date of grant or five years from the
date of vesting.
Particulars of options granted by ICICI Lombard up to March 31, 2018 are given
below:
Options granted 23,572,260
Options vested 18,204,108
Options exercised 14,163,448
Number of shares allotted pursuant to exercise of options 2,797,618
Options forfeited/lapsed 8,913,672
Extinguishment or modification of options* Nil
Amount realised by exercise of options (`) 356,974,940
Total number of options in force 495,140
* The exercise period for stock options granted between 2005 to 2007 has been
modified from tenth anniversary to thirteenth anniversary.
XIII. Fit and Proper criteria for investors and continuous monitoring requirement
The IRDAI guidelines for Listed Indian Insurance Companies prescribes the following:
1. 
Self-certification of “Fit and proper person” criteria by a person holding/
intending to acquire equity shares of 1% or more of paid-up equity share capital.
2. Prior permission of IRDAI for holding shares beyond 5% of the paid-up equity
share capital.
Further information on detailed procedure and format for self-certification is hosted
on the Company’s website
Continued
XIV. Implementation Strategy on Ind-As
IRDAI vide the circular dated March 1, 2016 had advised all Insurers to follow the
Indian Accounting Standards as notified under the Companies (Indian Accounting
Standards) Rules, 2015, subject to any guideline or direction issued by the IRDAI.
Insurance Companies are required to comply with Ind AS for financial statements
for accounting periods beginning from April 1, 2017 onwards, with comparatives
for the period ending March 31, 2018.
In compliance with the regulatory requirements, the Company has constituted a
Steering Committee headed by Sanjeev Mantri, Executive Director to oversee the
implementation of Ind AS. The scope of the Steering Committee includes evaluating
the impact on the following areas:
(a) Ind AS technical requirements
(b) Systems and processes
(c) Business impact
(d) People
(e) Project management
The Steering Committee oversees the implementation of Ind AS and the Audit
Committee is updated on a quarterly basis. Further, in compliance with the above
Circular, the Company has also submitted the proforma Ind AS financial statements
for the nine months ended December 31, 2017 to IRDAI.
XV. DIRECTORS’ RESPONSIBILITY STATEMENT
Directors confirm that:
1. in the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material
departures;
2. they have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the company at the end of the financial
year and of the profit of the company for that period;
3. they have taken proper and sufficient care for the maintenance of adequate
accounting records, in accordance with the IRDAI (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies) Regulations, 2002
and provisions of the Companies Act, 2013 for safeguarding the assets of ICICI
Lombard and for preventing and detecting fraud and other irregularities;
4. they have prepared the annual accounts on a going concern basis;
5. they have laid down internal financial controls to be followed by the Company
and that such internal financial controls were adequate and were operating
effectively and;
6. they have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating
effectively.
XVI. ACKNOWLEDGEMENTS
ICICI Lombard is grateful to the Insurance Regulatory and Development Authority
of India, Government of India, Reserve Bank of India and Securities and Exchange
Board of India for their continued co-operation, support and guidance. ICICI
Lombard wishes to thank its investors, rating agencies depositories, Registrar &
Share Transfer Agent & Stock Exchanges for their support.
ICICI Lombard would like to express its gratitude for the continued support and
guidance received from ICICI Bank and its group companies.
ICICI Lombard would like to take this opportunity to express sincere thanks to its
valued clients and customers for their continued patronage. The Directors express their
deep sense of appreciation to all the employees, whose outstanding professionalism,
commitment and initiative have made the organisation’s growth and success possible
and continue to drive its progress. Finally, the Directors wish to express their gratitude to
the Members for their trust and support.
For and on behalf of the Board
Chanda Kochhar
June 6, 2018 Chairperson
Mumbai DIN: 00043617
299
 directors’ report
Continued
COMPLIANCE WITH THE CODE OF
BUSINESS CONDUCT AND ETHICS

I confirm that all Directors and members of the senior management have affirmed compliance with Code of Business Conduct and Ethics for the year ended March 31, 2018.

Bhargav Dasgupta
Managing Director & CEO
DIN: 00047728
June 6, 2018
Mumbai

CERTIFICATE FOR COMPLIANCE OF THE

CORPORATE GOVERNANCE GUIDELINES

I, Vikas Mehra, hereby certify that the Company has, for the financial year ended March 31, 2018 complied with the corporate governance guidelines as prescribed by
Insurance Regulatory and Development Authority of India as amended from time to time and nothing has been concealed or suppressed.

Vikas Mehra
Company Secretary
June 6, 2018 ACS No.: 12117
Mumbai

300
directors’ report
Form No. MR-3
SECRETARIAL AUDIT REPORT
for the financial year ended March 31, 2018
[Issued in Pursuance to section 204(1) of the Companies Act, 2013 and Rule No. 9
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 with modifications as deemed necessary, without changing the substance of
format given in MR-3]
To,
The Members,
ICICI Lombard General Insurance Company Limited.
ICICI LOMBARD House, 414, Veer Savarkar Marg,
Near Siddhi Vinayak Temple, Prabhadevi,
Mumbai - 400025.
We have conducted the secretarial audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by ICICI Lombard
General Insurance Company Limited (CIN L67200MH2000PLC129408) (hereinafter
called ‘the Company’) for the financial year ended March 31, 2018. Secretarial Audit
was conducted in a manner that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing our opinion thereon. This
Company is governed mainly under the provisions of the Insurance Act, 1938 and
the Insurance Regulatory and Development Authority Act, 1999 (“Insurance Laws”)
and under the Companies Act, 2013 and rules framed thereunder where there is no
inconsistency with the Insurance Laws.
A. In expressing our opinion it must be noted that-
i. Maintenance of secretarial record is the responsibility of the management of
theCompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecords
based on our audit.
ii. We have followed the audit practices and processes as were appropriate
to obtain reasonable assurances about the correctness of the contents of
the secretarial records. The verification was done on test basis to ensure
that correct facts are reflected in secretarial records. We believe that the
processes and practices, we followed provide a reasonable basis of our
opinion.
iii. We have not verified correctness and appropriateness of financial records
and books of accounts of the Company.
iv. 
Wherever required, we have obtained the management representation
about the compliance of laws, rules and regulations and happening of
events etc.
v. 
The compliance of provisions of Corporate and other applicable laws,
rules, regulations, standards is the responsibility of the management. Our
examination was limited to the verification of procedures on test basis.
vi. 
The Secretarial Audit report is neither an assurance as to the future
viability of the Company nor of the efficacy or effectiveness with which the
management has conducted the affairs of the Company.
Based on our verification of the Company’s books, papers, minute books,
B. 
forms and returns filed and other records maintained by the Company and also
the information provided by the Company, its officers, agents and authorised
representatives during the conduct of secretarial audit, We hereby report that
in our opinion, the company has, during the audit period covering the financial
year ended on March 31, 2018 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-process (duly evolved)
and compliance-mechanism in place to the extent and as applicable to the
Company in the manner and subject to the reporting made hereinafter:
C. We have examined the books, papers, minute books, forms and returns filed
and other records maintained by the Company for the financial year ended on
March 31, 2018 according to the provisions of:
I. The Companies Act, 2013 (‘the Act’) and the rules made thereunder;
II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made
thereunder;
III. 
The Depositories Act, 1996 and the Regulations and Bye-laws framed
thereunder;
IV. Foreign Exchange Management Act, 1999 and the rules and regulations
made thereunder to the extent of Foreign Direct Investment, Overseas
Direct Investment and External Commercial Borrowings;
V. A. 
The following Regulations and Guidelines prescribed under the
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition
of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009;
ANNEXURE A
(d) The Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014;
(e) The Securities and Exchange Board of India (Issue and Listing of
Debt Securities) Regulations, 2008;
(f) 
The Securities and Exchange Board of India (Registrars to an
issue and Share Transfer Agents) Regulations, 1993 regarding the
Companies Act and dealing with client;
The Company has not undertaken any of the activities during the
V. B. 
audit period as envisaged in the following Regulations and Guidelines
prescribed under the Securities and Exchange Board of India Act, 1992
(‘ SEBI Act’) and hence are not relevant for the purpose of audit:-
a. 
The Securities and Exchange Board of India (Delisting of Equity
Shares) Regulations, 2009.
b. The Securities and Exchange Board of India (Buyback of Securities)
Regulations, 1998.
VI. 
And the Company being in the business of Insurance other than Life
Insurance, the Special Act as applicable to it is the Insurance Act, 1938
and extant Rules & Regulation framed under Insurance Regulatory and
Development Authority Act, 1999 (IRDA).
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards in respect of Meetings of the Board of Directors (SS-1)
and General Meetings (SS-2) as amended with effect from October 1, 2017
issued by The Institute of Company Secretaries of India;
(ii) Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations 2015;
a. to the extent applicable for listing of its Non-Convertible Debentures for
the period from April 1, 2017 to September 26, 2017;
b. 
Equity Shares and Non–Convertible Debentures for the period from
September 27, 2017.
During the period under review the Company has complied with the provisions
of the Act, Rules, Regulations, Guidelines, Standards etc. mentioned above.
D. We further report that--
I. The Board of Directors of the Company is duly constituted with proper
balance of Executive Directors, Non-Executive Directors and Independent
Directors. The changes in the composition of the Board of Directors that
took place during the period under review were carried out in compliance
with the provisions of the Companies Act, 2013.
II. Adequate notice is given to all directors to schedule the Board Meetings,
agenda and detailed notes on agenda were sent well in advance and a
system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at
the meeting.
III. 
Majority decision is carried through and there was no instance of any
director expressing any dissenting views.
We further report that there are adequate systems and processes in the
E. 
Company commensurate with its size and operations to monitor and ensure
compliance with applicable laws, rules, regulations and guidelines.
F. We further report that during the audit period the Company has undertaken, the
following Corporate Action having the major bearing on the Company’s affairs
in pursuance of the aforesaid rules and regulations, guidelines, standards, etc:
1. The Company has listed its 453,948,304 Equity Shares of `10/- each fully
paid up on BSE Limited and National Stock Exchange of India Limited
with effect from September 27, 2017 through an offer for sale through the
book building process in terms of Rule 19(2)(b) of the Securities Contracts
(Regulation) Rules,1957 as amended and in accordance with Regulation
26(1) of Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements), Regulations, 2009 as amended.
Except the above, none of the following events has taken place:
(i) Redemption/buy-back of Securities;
(ii) Major decisions taken by the members in pursuance to section 180 of
the Companies Act, 2013;
(iii) Merger/amalgamation/reconstruction, etc;
(iv) Foreign technical collaborations.
For Dholakia & Associates LLP
(Company Secretaries)
CS Bhumitra V. Dholakia
Place: Mumbai Designated Partner
Date: April 12, 2018. FCS-977 CP No. 507
301
 directors’ report
Disclosures required with respect to Section 197(12) of the Companies Act, 2013
and Rule 5(1) of the Companies (Appointment and Remuneration) Rules, 2014
The ratio of the remuneration of each Director to the median employee’s
remuneration and such other details in terms of Section 197(12) of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
(i) The ratio of the remuneration of each director to the median remuneration of
the employees of the company for the financial;
Mr. Bhargav Dasgupta, Managing Director & CEO 89:1
Mr. Alok Kumar Agarwal, Executive Director 51:1
Mr. Sanjeev Mantri, Executive Director 56:1
(ii) 
The percentage increase in remuneration of each director, Chief Financial
Officer, Chief Executive Officer, Company Secretary or Manager;
 The percentage increase in remuneration of each director, Chief Financial
Officer, Chief Executive Officer, Company Secretary ranged between 12% and
17%.
(iii) The percentage increase in the median remuneration of employees in the
financial year;
The percentage increase in the median remuneration of employee in the last
financial year was 8%.
302
ANNEXURE B
(iv) The number of permanent employees on the rolls of company;
The number of permanent employees on the rolls of company as on March 31,
2018 were 6,849.
(v) Average percentile increase already made in the salaries of employees other
than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase
in the managerial remuneration;
The average percentile increase in the salaries of employees other than the
Key Managerial Personnel in the last financial year was 9%, while the average
percentile increase in the salaries the Key Managerial Personnel in the last
financial year was in the range of 12% to 17%
(vi) Affirmation that the remuneration is as per the remuneration policy of the
company
Yes
Chanda Kochhar
June 6, 2018 Chairperson
Mumbai DIN: 00043617
directors’ report
ANNEXURE C
FORM NO. MGT - 9
EXTRACT OF ANNUAL RETURN
as on the financial year ended March 31, 2018
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. Registration and other details:

CIN L67200MH2000PLC129408
Registration Date October 30, 2000
Name of the Company ICICI Lombard General Insurance Company Limited
Category / Sub-Category of the Company Company Having Share Capital// Indian non-government of the Company
Address of the registered office and contact details ICICI Lombard House, 414, Veer Savarkar Marg, Near Siddhivinayak Temple, Prabhadevi,
Mumbai – 400025
Whether listed company Yes / No Yes
Name, Address and Contact details of Registrar and Transfer Agent, 1. Equity Shares
if any Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32 Gachibowli, Financial District Nanakramguda,
Hyderabad 500 032 Tel: (91 40) 6716 2222 Fax: (91 40) 2343 1153
2. Debentures
Link Intime India Private Limited
247, Lal Bahadur Shastri Marg, Surya Nagar, Gandhi Nagar, Vikhroli (West), Mumbai 400 083
Maharashtra, India.
Tel No. : +91-22-4918 6000 | Fax No. : +91-22-4918 6060

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Name and Description of main products/service NIC Code of the Product/Service % to the total turover of the Company

General Insurance 6512 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Name and address of the Company CIN/GLN Holding/ Subsidiary/ Associate % Of Shares Held Applicable Section
ICICI Bank Limited L65190GJ1994PLC021012 Holding Company 55.92 2(46)
ICICI Bank Towers Bandra-Kurla Complex
Mumbai - 400051

IV. SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)
i. Category-wise Shareholding.
Sl Category of shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change
No April 1, 2017 March 31, 2018 during the
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
Promoters

(1) Indian
a) Individual/HUF
b) Central Govt - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. - - - - - - - - -
e) Banks/FI 285,605,284 - 285,605,284 63.31 253,843,806 - 253,843,806 55.92 (7.39)
f) Any Other - - - - - - - - -
Sub-total (A) (1) :- 285,605,284 - 285,605,284 63.31 253,843,806 - 253,843,806 55.92 (7.39)
(2) Foreign -
a) NRIs-Individuals - - - - - - - - -
b) Other-Individuals - - - - - - - - -
c) Bodies Corp. 154,777,462 - 154,777,462 34.31 - - - - (34.31)
d) Banks/FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-total (A) (2):- 154,777,462 - 154,777,462 34.31 - - - - (34.31)
Total Shareholding of Promoter 440,382,746 - 440,382,746 97.62 253,843,806 - 253,843,806 55.92 (41.70)
(A) = (A)(1)+(A)(2)
B Public Shareholding
(1) Institutions - - - - - - - - -
a) Mutual Funds/UTI-II - - - - 31,719,355 - 31,719,355 6.99 6.99
b) Banks/Financial Institutions - - - - 168,681 - 168,681 0.04 0.04
c) Alternative Investment Fund - - - - 9,679,285 - 9,679,285 2.13 2.13
d) Foreign Portfolio Investors - - - - 29,151,402 - 29,151,402 6.42 6.42
e) Central Govt - - - - - - - - -
State Govt(s) - - - - - - - - -
g) Venture Capital Funds - - - - - - - - -
h) Insurance Companies - - - - - - - - -
i) FIIs - - - - - - - - -

303
 directors’ report
ANNEXURE C

Sl Category of shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change
No April 1, 2017 March 31, 2018 during the
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
j) Foreign Venture Capital Funds - - - - - - - - -
k) Other (specify) - - - - - - - - -
l) Foreign Banks - - - - - - - - -
m) FII-DR - - - - - - - - -
Sub-total (B) (1) :- - - - - 70,718,723 - 70,718,723 15.58 15.58
(2) Non-Institutions - - - - - - - - -
a) Bodies Corp. - - -
i) Indian 1,607,868 - 1,607,868 0.36 5,141,616 - 5,141,616 1.13 0.77
ii) Overseas - - - - - - - - -
b) Individuals - - - - - - - - -
i) Individual shareholders holding 907,946 101,190 1,009,136 0.22 14,875,235 50,339 14,925,574 3.29 3.07
nominal share capital upto ` 1 lakh
ii) Individual shareholders holding 7,093,142 659,000 7,752,142 1.72 12,336,947 - 12,336,947 2.72 1.00
nominal share capital excess of
` 1 lakh
c) Others (specify) - - - - - - - - -
Trust - - - - 234,900 - 234,900 0.05 0.05
Directors & their Relatives - - - - 832,798 - 832,798 0.18 0.18
(Resident)
Non-Resident Indian Directors - - - - - - - - -
Foreign Nationals - - - - - - - - -
Non-Resident Indians 331,850 - 331,850 0.07 1,169,720 - 1,169,720 0.26 0.19
Clearing Member - - - - 144,183 - 144,183 0.03 0.03
Hindu Undivided Families 66,944 - 66,944 0.01 602,140 - 602,140 0.13 0.12
Foreign Companies
Foreign Bodies-DR - - - - 93,080,157 - 93,080,157 20.50 20.50
NRI-DR - - - - - - - - -
NBFC regitered with RBI - - - - 917,740 - 917,740 0.21 0.21
Sub-total (B) (2) :- 10,007,750 760,190 10,767,940 2.38 129,335,436 50,339 129,385,775 28.50 26.12
Total Public Shareholding (B) = 200,054,159 50,339 200,104,498 44.08
(B)(1)+(B)(2)
C Shares held by Custodian for - - - - - - - - -
GDRs & ADRs
Grand Total (A+B+C) 450,390,496 760,190 451,150,686 100.00 453,897,965 50,339 453,948,304 100.00 -

(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the Shareholding at the % change in
No beginning of the year April 1, 2017 end of the year March 31, 2018 shareholding
No. of Shares % of total % of Shares No. of Shares % of total % of Shares during the year
Shares of the Pledged/ Shares of the Pledged/
Company encumbered to Company encumbered to
total shares total shares
1 ICICI Bank Limited 285,605,284 63.31 - 253,843,806 55.92 - (7.39)
2 FAL Corporation* (FAL) 154,777,462 34.31 - - - (34.31)
Total 440,382,746 97.62 - 253,843,806 55.92 - (41.70)
* As on March 31, 2018, FAL is not included in promoter group consequent to termination of JV agreement.

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Sl. Shareholding at the beginning of Date wise Increase/Decrease in shareholding during Cumulative Shareholding during
No. the year the year specifying the reasons for increase/decrease the year
April 1, 2017 (e.g. allotment/transfer/bonus/sweat equity etc) March 31, 2018
No. of shares % of total shares No. of shares % of total shares
of the company of the company
1 ICICI Bank Ltd. 285,605,284 63.31 - - - 285,605,284 63.31
- - 27/09/2017 Disposal of shares 31,761,478 253,843,806 55.92
through offer for
sale
At the End of the year 253,843,806 55.92
2 FAL CORPORATION* (FAL) 154,777,462 34.31 - - - 154,777,462 34.31
- - 07/07/2017 Sale 55,312,983 99,464,479 21.92
- - 08/09/2017 Sale 54,485,709 44,978,770 9.91
At the End of the year 44,978,770 9.91
* As on March 31, 2018, FAL is not included in promoter group consequent to termination of JV agreement.

304
directors’ report
ANNEXURE C
iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Sl Shareholding at the beginning Date wise Increase/Decrease in shareholding Shareholding at the Cummulative Shareholding during
No of the year during the year specifying the reasons for increase/ end of the year the year
April 1, 2017 decrease March 31, 2018
For Each of the top 10 No.of Shares % of total (e.g. allotment/transfer/bonus/sweat equity etc): No.of Shares % of total No.of Shares % of total
Shareholders shares of the shares of the shares of the
company company company
1 FAL CORPORATION 154,777,462 34.31 - - - - - 154,777,462 34.31
- - 07/07/2017 Offer for Sale 55,312,983 - - 99,464,479 21.92
- - 08/09/2017 Offer for Sale 54,485,709 44,978,770 9.91 44,978,770 9.91
2 RED BLOOM INVESTMENT LTD - - - - - - - - -
- - 07/07/2017 Purchase 40,889,791 40,889,791 9.01 40,889,791 9.01
3 TAMARIND CAPITAL PTE LTD - - - - - - - - -
- - 07/07/2017 Purchase 7,211,596 7,211,596 1.59 7,211,596 1.59
4 MOTILAL OSWAL MOST - - - - - - - - -
FOCUSED DYNAMIC EQUITY - - 29/09/2017 Purchase 3,921,269 - - 3,921,269 0.86
FUND - - 06/10/2017 Purchase 861,134 - - 4,782,403 1.05
- - 13/10/2017 Purchase 241,619 - - 5,024,022 1.11
- - 20/10/2017 Purchase 99,894 - - 5,123,916 1.13
- - 27/10/2017 Purchase 415,931 - - 5,539,847 1.22
- - 31/10/2017 Purchase 86,125 - - 5,625,972 1.24
- - 03/11/2017 Purchase 30,000 - - 5,655,972 1.25
- - 10/11/2017 Purchase 22,000 - - 5,677,972 1.25
- - 17/11/2017 Purchase 30,000 - - 5,707,972 1.26
- - 08/12/2017 Purchase 13,210 - - 5,721,182 1.26
- - 15/12/2017 Purchase 189,307 - - 5,910,489 1.30
- - 22/12/2017 Purchase 25,162 - - 5,935,651 1.31
- - 05/01/2018 Purchase 32,160 - - 5,967,811 1.31
- - 12/01/2018 Purchase 41,180 - - 6,008,991 1.32
- - 19/01/2018 Purchase 291,949 - - 6,300,940 1.39
- - 26/01/2018 Purchase 222,469 - - 6,523,409 1.44
- - 02/02/2018 Purchase 35,000 - - 6,558,409 1.44
- - 09/02/2018 Purchase 239,767 - - 6,798,176 1.50
- - 16/02/2018 Purchase 116,752 - - 6,914,928 1.52
- - 23/02/2018 Purchase 129,756 - - 7,044,684 1.55
- - 02/03/2018 Purchase 23,720 - - 7,068,404 1.56
- - 09/03/2018 Purchase 12,364 - - 7,080,768 1.56
- - 16/03/2018 Sale 145,872 - - 6,934,896 1.53
- - 23/03/2018 Sale 27,114 - - 6,907,782 1.52
- - 30/03/2018 Purchase 38,963 6,946,745 1.53 6,946,745 1.53
5 KOTAK MAHINDRA BALANCE - - - - - - - - -
UNIT - - 29/09/2017 Purchase 1,933,325 - - 1,933,325 0.43
SCHEME 99 - - 06/10/2017 Purchase 536,249 - - 2,469,574 0.54
- - 13/10/2017 Purchase 456,145 - - 2,925,719 0.64
- - 20/10/2017 Purchase 117,658 - - 3,043,377 0.67
- - 27/10/2017 Purchase 698,090 - - 3,741,467 0.82
- - 31/10/2017 Purchase 75,141 - - 3,816,608 0.84
- - 03/11/2017 Purchase 394,429 - - 4,211,037 0.93
- - 10/11/2017 Purchase 60,569 - - 4,271,606 0.94
- - 17/11/2017 Purchase 47,492 - - 4,319,098 0.95
- - 24/11/2017 Purchase 52,508 - - 4,371,606 0.96
- - 01/12/2017 Purchase 25,000 - - 4,396,606 0.97
- - 22/12/2017 Purchase 125,000 - - 4,521,606 1.00
- - 29/12/2017 Purchase 470,000 - - 4,991,606 1.10
- - 12/01/2018 Purchase 100,000 - - 5,091,606 1.12
- - 19/01/2018 Sale 26,022 - - 5,065,584 1.12
- - 16/02/2018 Purchase 55,000 - - 5,120,584 1.13
- - 23/02/2018 Purchase 145,000 - - 5,265,584 1.16
- - 23/02/2018 Sale 40,000 - - 5,225,584 1.15
- - 23/03/2018 Purchase 9,000 - - 5,234,584 1.15
- - 23/03/2018 Sale 10,000 5,224,584 1.15 5,224,584 1.15
6 IIFL SPECIAL OPPORTUNITIES - - - - - - - 90,000 0.02
FUND - - 07/04/2017 Purchase 171016 - - 261,016 0.06
- - 14/04/2017 Purchase 144556 - - 405,572 0.09
- - 21/04/2017 Purchase 146900 - - 552,472 0.12
- - 07/07/2017 Purchase 3523663 - - 4,076,135 0.90
- - 22/09/2017 Purchase 646985 - - 4,723,120 1.04
- - 22/09/2017 Sale 646985 - - 4,076,135 0.90
- - 29/09/2017 Purchase 482423 4,558,558 1.00 4,558,558 1.00

305
 directors’ report
to the members ANNEXURE C

Sl Shareholding at the beginning Date wise Increase/Decrease in shareholding Shareholding at the Cummulative Shareholding during
No of the year during the year specifying the reasons for increase/ end of the year the year
April 1, 2017 decrease March 31, 2018
For Each of the top 10 No.of Shares % of total (e.g. allotment/transfer/bonus/sweat equity etc): No.of Shares % of total No.of Shares % of total
Shareholders shares of the shares of the shares of the
company company company
7 DSP BLACKROCK DUAL - - - - - - - - -
ADVANTAGE FUND-SERIES - - 29/09/2017 Purchase 3,657,392 - - 3,657,392 0.81
49-42 - - 06/10/2017 Purchase 202,706 - - 3,860,098 0.85
- - 13/10/2017 Purchase 3,501 - - 3,863,599 0.85
- - 20/10/2017 Sale 1,925 - - 3,861,674 0.85
- - 17/11/2017 Sale 50,225 - - 3,811,449 0.84
- - 24/11/2017 Purchase 155,233 - - 3,966,682 0.87
- - 01/12/2017 Purchase 90,973 - - 4,057,655 0.89
- - 08/12/2017 Purchase 100,109 - - 4,157,764 0.92
- - 15/12/2017 Purchase 145,865 - - 4,303,629 0.95
- - 22/12/2017 Purchase 149,584 - - 4,453,213 0.98
- - 05/01/2018 Sale 84,964 - - 4,368,249 0.96
- - 12/01/2018 Purchase 82,942 - - 4,451,191 0.98
- - 12/01/2018 Sale 1,611 - - 4,449,580 0.98
- - 19/01/2018 Sale 8,620 - - 4,440,960 0.98
- - 26/01/2018 Sale 20,461 - - 4,420,499 0.97
- - 02/02/2018 Sale 38,559 - - 4,381,940 0.97
- - 09/02/2018 Sale 29,718 - - 4,352,222 0.96
- - 23/02/2018 Purchase 25,497 - - 4,377,719 0.96
- - 16/03/2018 Purchase 21,589 - - 4,399,308 0.97
- - 23/03/2018 Purchase 2,357 - - 4,401,665 0.97
- - 30/03/2018 Purchase 11,137 4,412,802 0.97 4,412,802 0.97
8 AMANSA HOLDINGS PRIVATE - - - - - - - - -
LIMITED - - 29/09/2017 Purchase 2,894,464 - - 2,894,464 0.64
- - 06/10/2017 Purchase 11,271 - - 2,905,735 0.64
- - 13/10/2017 Purchase 304,895 - - 3,210,630 0.71
- - 20/10/2017 Purchase 22 - - 3,210,652 0.71
- - 27/10/2017 Purchase 125,477 - - 3,336,129 0.73
- - 31/10/2017 Purchase 20,916 - - 3,357,045 0.74
- - 03/11/2017 Purchase 337,424 - - 3,694,469 0.81
- - 10/11/2017 Purchase 46,284 - - 3,740,753 0.82
- - 17/11/2017 Purchase 72,487 - - 3,813,240 0.84
- - 01/12/2017 Purchase 123,753 - - 3,936,993 0.87
- - 08/12/2017 Purchase 10,262 - - 3,947,255 0.87
- - 15/12/2017 Purchase 109,318 - - 4,056,573 0.89
- - 23/03/2018 Purchase 276,558 - - 4,333,131 0.95
- - 30/03/2018 Purchase 47,301 4,380,432 0.96 4,380,432 0.96
9 SBI MAGNUM EQUITY FUND - - - - - - - - -
- - 29/09/2017 Purchase 968,242 - - 968,242 0.21
- - 06/10/2017 Purchase 2,139,956 - - 3,108,198 0.68
- - 13/10/2017 Purchase 104,654 - - 3,212,852 0.71
- - 20/10/2017 Purchase 1,700 - - 3,214,552 0.71
- - 27/10/2017 Purchase 63,672 - - 3,278,224 0.72
- - 31/10/2017 Purchase 199,463 - - 3,477,687 0.77
- - 03/11/2017 Purchase 135,264 3,612,951 0.80 3,612,951 0.80
10 AZIM HASHAM PREMJI - - - - - - - - -
- - 29/09/2017 Purchase 2,798,774 2,798,774 0.62 2,798,774 0.62

Sl For Each of the Directors Shareholding at the beginning of Date wise Increase/Decrease in shareholding Shareholding at the end of the Cummulative Shareholding during
No and KMP the year April 1, 2017 during the year specifying the reasons for increase/ year March 31, 2018 the year
Name of the No.of Shares % of total decrease No.of Shares % of total No.of Shares % of total
Director/KMP shares of the (e.g. allotment/transfer/bonus/sweat equity etc) shares of the shares of the
company company company
1 Bhargav Dasgupta - - - - - - - - -
- - 26/05/2017 375,000 ESOS - - 375,000 0.08
- - 29/09/2017 508 IPO allotment 375,508 0.08 375,508 0.08
2 Alok Kumar Agarwal 75,000 0.00 - - - - - 75,000 0.02
- - 26/05/2017 205,000 ESOS - - 280,000 0.06
- - 05/07/2017 175,000 ESOS 455,000 0.10 455,000 0.10
3 Sanjeev Mantri - - - - - - - - -
- 29/09/2017 508 IPO allotment 508 0.00 508 0.00
4 Lalita D. Gupte - - - - - - - - -
- - 29/09/2017 1,782 IPO allotment 1,782 0.00 1,782 0.00
5 Gopal Balachandran 84,000 0.02 - - - - - 84,000 0.02
- - 24/05/2017 30,000 ESOS - 114,000 0.03
- - 05/06/2017 20,000 ESOS - 134,000 0.03
- - 06/07/2017 119,250 ESOS 253,250 0.06 253,250 0.06
6 Vikas Mehra 18,500 0.00 - - - - - 18,500 0.00
- - 07/04/2017 5,000 Sale 13,500 0.00 13,500 0.00
- - 29/09/2017 110 IPO allotment 110 0.00 13,610 0.00

306
directors’ report
to the members ANNEXURE C
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment-NIL
(` in lacs)
Particulars Secured Loans Unsecured Deposits Total Indebtedness
excluding deposits Loans
Indebtedness at the beginning of the financial year 48,500 - 48,500
i) Principal amount - - - -
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ii+iii) - - - -
Change in Indebtedness during the financial year
- Addition - - - -
- Reduction - - - -
Net Change - 48,500 - 48,500
Indebtedness at the end of the financial year
i) Principal amount - 48,500 - 48,500
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 2,708 - 2,708
Total (i+ii+iii) - 51,208 - 51,208

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(` in lacs)
Sr. Particulars of Remuneration Bhargav Dasgupta Managing Director Alok Kumar Agrawal Executive Sanjeev Mantri Executive Director
No & CEO Director
1 Gross salary
(a) Salary as per provisions contained in 504.86 290.90 299.43
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax 3.46 0.32 11.81
Act, 1961
c) Profits in lieu of salary under section 17(3) - - -
Income-tax Act, 1961
2 Stock Options# 1,022.50 1,113.00 -
3 Sweat Equity - - -
4 Commission - - -
- as % of profit - - -
- others, specify… - - -
5 Others-Retirals (PF) 24.32 11.40 12.85
Total (A) 1,555.14 1,415.62 324.09

* Provisions towards gratuity leave accrued and long term performance pay are determined actuarially on an overall basis and accordingly have not been considered for the
above disclosure.
# Perquisite value of the stock options exercised

B. Remuneration to other Directors :

1. Independent Directors
(` in lacs)
Sr. Particulars of Remuneration Name of Director
No Ashvin Parekh Uday Chitale Suresh Kumar Lalita Ved Prakash
D. Gupte Chaturvedi
1 Fee for attending Board/Committee Meeting 13.60 13.00 11.80 9.00 11.40
2 Commission 7.50 7.50 7.50 7.50 7.50
3 Others, please specify - - - - -
Total B (1) 21.10 20.50 19.30 16.50 18.90
Commission for FY2018 will be paid in FY2019
2. Other Non Executive Directors
(` in lacs)
Sr. Particulars of Remuneration
No
1 Fee for attending Board/Committee Meeting No attending fees for Board/Committee or
2 Commission Commission is being paid to Non Executive Directors
3 Others, please specify
Total B (2)
Total B = B(1) + B(2) 21.10 20.50 19.30 16.50 18.90

307
 directors’ report
ANNEXURE C

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

(` in lacs)
Sr. Particulars of Remuneration Name of Key Managerial Personnel Total Amount
No Gopal Balachandran Chief Financial Vikas Mehra
Officer Company Secretary
1 Gross salary
(a) Salary as per provisions contained in 219.82 65.79 285.61
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax 0.14 0.24 0.38
Act, 1961
c) Profits in lieu of salary under section 17(3) - - -
Income-tax Act, 1961
2 Stock Options# 524.03 - 524.03
3 Sweat Equity - - -
4 Commission - - -
- as % of profit - - -
- others, specify… - - -
5 Others, Retirals 5.84 2.10 7.94
Total (C) 749.83 68.13 817.96
*Provisions towards gratuity leave accrued and long term performance pay are determined actuarially on an overall basis and accordingly have not been considered for the
above disclosure.
# Perquisite value of the stock options exercised

VII. Penalties/Punishment/Compounding of Offences :

Type Section of the Companies Act Brief Description Details of Penalty/ Punishment/ Authority [RD / NCLT/ COURT]
Compouding fees imposed
NIL

Chanda Kochhar
June 6, 2018 Chairperson
Mumbai DIN: 00043617

308
directors’ report
ANNEXURE D

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. A brief outline of the Company’s CSR policy, including overview of projects
or programmes proposed to be undertaken and a reference to the web-link to
the CSR policy and projects or programs.
CSR has been a long-standing commitment at ICICI Lombard and forms an
integral part of its activities. The Company’s objective is to pro-actively support
meaningful socio-economic development. It works towards developing an
enabling environment that will help citizens realise their aspirations towards
leading a meaningful life.
In line with its objectives, the following areas have been shortlisted for the CSR
roadmap which includes healthcare, road safety, education, skill development
and sustainable livelihoods, support employee volunteering in CSR activities
and other areas such as disaster relief.
The CSR policy was approved by the Board of Directors in the Meeting held on
October 15, 2014, and subsequently was put up on the ICICI Lombard website.
Web-link to the CSR policy:
https://www.icicilombard.com/content/ilom-en/csr-policy/CSR_Policy.pdf
2. The Composition of the CSR Committee
The CSR Committee comprises two Non-Executive Independent Directors, two
Non-Executive Directors and the Managing Director & CEO of ICICI Lombard,
and is chaired by an Independent Director. The composition of the Committee is
set out below:
Uday Chitale, Chairman (Non-executive Independent Director)
Ved Prakash Chaturvedi (Non-executive Independent Director)
N. S. Kannan (Non-executive, Nominee of ICICI Bank)
Bhargav Dasgupta (Managing Director & CEO)

The functions of the Committee include review of corporate social
responsibility (CSR) initiatives undertaken by the ICICI Lombard, formulation
and recommendation to the Board of a CSR Policy indicating the activities
to be undertaken by ICICI Lombard and recommendation of the amount of
expenditure to be incurred on such activities, review and recommend the annual
CSR plan to the Board, making recommendations to the Board with respect to
the CSR initiatives, monitor the CSR activities, implementation and compliance
with the CSR Policy and to review and implement, if required, any other matter
related to CSR initiatives as recommended/suggested by Companies Act.
3. Average net profit of the Company for last three financial years
 The average net profit of the Company for the last three financial years
calculated as specified by the Companies Act 2013 was ` 7,441.6 million.
4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)
The prescribed CSR expenditure requirement for FY2018 was ` 148.8 million.
5. Details of CSR spent during the financial year
(a) Total amount to be spent for the financial year;
Total amount spent towards CSR during FY2018 was ` 149.7 million.
(b) Amount unspent, if any: Nil

(c) Manner in which the amount spent during the financial year is detailed below:

S Projects/ Activities Sector Location Amount outlay Amount spent Cumulative Amount
No Districts (State) (budget) on the projects Expenditure spent: Direct
project or or programmes upto the or through
programme (` million) reporting Period implementing
wise (` million) (` million) agency
1 Ride to Safety – Unique initiative to Promoting road safety education Mumbai, 25.9 25.2 68.1 Through NGO
spread awareness about road safety. Delhi, Pune, partners
Make Indian Roads safer for children Ahmedabad,
through direct contact programme and Chennai,
distribution of helmets. Nagpur and
Bangalore
2 Eye check-up camps for under- Promoting healthcare Conducted at 10.3 11.7 27.5 Direct
privileged school kids led by 273 schools (including
employees covering 36,579 children. across 104 employee
5,583 cases of poor vision provided locations volunteering
with spectacles. cost of ` 2.4
million)
3 The Company conducted awareness Promoting wellness and healthcare Mumbai 1.0 1.1 1.4 Through NGO
programmes on wellness and safe partners
drinking water habits with children
and teachers in select schools.
Further, water purifiers were installed
in these schools, thereby playing
a supporting role in ensuring basic
facilities aimed at children’s wellness.
4 Projects of ICICI Foundation for Promoting education, employment PAN-India 111.6 111.6 270.7 Amount spent
Inclusive Growth enhancing vocational skills and through ICICI
livelihood enhancement projects. Foundation
for Inclusive
Growth. The
Foundation
was set up in
2008 to focus
on activities
in the area of
CSR
Total 148.8 149.6 367.7

6. In case the company has failed to spend the 2% of the average net profits of the last three financial years or any part thereof, the company shall provide the reasons
for not spending the amount in its Board report.
The amount spent in FY2018 was ` 149.7 million which is higher than the budget of ` 148.8 million being 2% of the average net profits of the last three financial years.

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with CSR objectives and the CSR Policy of the Company.

Bhargav Dasgupta Uday Chitale

Managing Director & CEO CSR Committee Chairman
DIN: 00047728 DIN: 00043268

309
 management report
In accordance with the provisions of the Insurance Regulatory & Development
Authority of India (‘IRDAI’) (Preparation of Financial Statements and Auditors’ Report
of Insurance Companies) Regulations, 2002 (‘Regulation’) the following Management
Report for the year ended March 31, 2018 is submitted:
1. The Company obtained Regulatory approval to undertake General Insurance
business on August 3, 2001 from the Insurance Regulatory and Development
Authority of India (‘IRDAI’) and holds a valid certificate of registration.
2. During the year ended March 31, 2018, the Company completed its Initial Public
Offering (IPO) by way of an offer for sale of 86,247,187 equity shares of ` 10 each
at a price of ` 661 per equity share, by ICICI Bank Limited, the Promoter Selling
Shareholder and FAL Corporation, the Investor Selling Shareholder aggregating
to ` 57,009.4 million. The equity shares of the Company are listed on BSE
Limited and National Stock Exchange from September 27, 2017 onwards. The
shareholding pattern is available in Schedule 5A of the financial statements.
3. We certify that all the dues payable to the statutory authorities have been duly
paid.
4. 
We confirm that the shareholding pattern and transfer of shares are in
accordance with statutory and regulatory requirements.
5. The management has not invested any funds of holders of policies in India,
directly or indirectly as required by IRDAI, outside India.
6. We confirm that the required solvency margin has been maintained.
7. We certify that the values of all the assets have been reviewed on the date of the
balance sheet and that in our belief the assets set forth in the balance sheet are
shown in aggregate at amounts not exceeding their realisable or market value
under several headings - investments, agents balances, outstanding premiums,
amount due from other entities carrying on insurance business, interest and
dividend accrued, cash and several items specified under other accounts except
unlisted equity, venture fund, securitised receipts, debt securities which are
stated at cost / amortised cost.
8. The entire gross risk exposure of the portfolio consists of fire, engineering, hull,
aviation, motor, casualty, health, travel, energy, personal accident, rural and
credit insurance and other lines of business.
The overall exposure is spread over various sectors including but not limited
to power, textiles, heavy and light engineering, paper, services, fast moving
consumer goods, auto components, etc. across urban and rural segments as
well as across demography.
The business underwritten pertains to the various products filed by us with
IRDAI, as per the file and use procedure: this includes tariff as well as non tariff
products.
While in property lines (Fire) the net retention has not exceeded ` 2,500.0 million
on a PML basis (Previous year: ` 2,500.0 million) in any single risk, this also
gets graded down to between ` 30.0 million to ` 2,500.0 million (Previous year:
between ` 30.0 million to ` 2,500.0 million) on a case-to-case basis, depending
on exposure levels and prudent underwriting standards. The excess of loss
treaties protect the accumulation of the net retentions.
Further, before underwriting any major property risk, a risk inspection is
carried out, and on being satisfied about the acceptability of risk, the same is
accepted. In addition, various loss prevention / risk-mitigating measures are
also suggested to the clients to help improve the risks.
9. We confirm that there are no operations of the Company outside India.
10. a) For ageing analysis of claims outstanding during the preceding five years,
Please refer Annexure 1.
b) For average claims settlement time during the preceding five years, please
refer Annexure 2.
c) For details of claims intimated, please refer Annexure 3.
11. We certify that the Investments made in debt securities have been valued at
historical cost subject to amortisation of premium / discount. The same is in
accordance with the Insurance Regulatory and Development Authority of India
(‘IRDAI’) (Preparation of Financial Statements and Auditors’ Report of Insurance
Companies) Regulation, 2002 (‘Regulation’).
For the purpose of comparison, the fair value of debt securities has been arrived
on a Yield to maturity (YTM) basis by using the appropriate discount rates
derived from the yield curve data provided by the Fixed Income and Money
Market Dealers Association (FIMMDA) in respect of Government Securities and
Crisil’s Security Level Valuation (SLV) in respect of other debt instruments.
Listed equity securities and convertible preference shares as at the balance
sheet date are stated at fair value being the last quoted closing price on NSE.
However, in case of any stock not being traded on NSE, the Company has
valued them based on the last quoted closing price on BSE.
Mutual fund investments are stated at fair value, being the closing net asset
value as at balance sheet date.
310
Investment Properties - Real Estate is stated at historical cost less accumulated
depreciation.
Investments other than those mentioned above are valued at cost.
In accordance with the Regulation, unrealised gain/loss arising due to changes
in fair value of listed equity shares, convertible preference shares and mutual
fund investments are taken to the ‘fair value change account’. This balance in the
fair value change account is not available for distribution, pending realisation.
The Company assesses at each balance sheet date whether any impairment
has occurred in respect of investment in equity and units of mutual fund. The
impairment loss, if any, is recognised in the profit and loss account and the
carrying value of such investment is reduced to its recoverable value. If on the
assessment at balance sheet date a previously impaired loss no longer exists,
then such loss is reversed to the profit and loss account and the investment is
restated to that extent.
Impairment for Investment properties is assessed at each balance sheet date.
The impairment loss, if any is recognised in the profit and loss account and the
carrying value of such investment is reduced to its recoverable value.
12. Investments as at March 31, 2018 amount to ` 181,926.7 million Refer schedule
8 & 8A (previous year: 149,504.5 million). Income from Investments amounted
to ` 15,326.4 million (previous period: 13,104.6 million).
Investments other than deposits with the banks, units of mutual fund, units of
venture fund and security receipts are only in regularly traded instruments in
the secondary markets. The Company’s debt investment comprises largely of
government securities, AAA and AA/P1+ rated security.
All are performing investments with no arrears of any payments due.

Investments are managed in consonance with the investment policy framed
from time to time by the Board and are within the investment regulation and
guidelines of IRDAI.
13. We also confirm:
(a) 
in the preparation of financial statements, the applicable accounting
standards, principles and policies have been followed along with proper
explanations relating to material departures, if any;
(b) 
the management has adopted accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company for the year ended and of the operating profit and of the profits of
the Company for the year ended;
(c) the management has taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the applicable provisions
of the Insurance Act, 1938, Insurance Laws (Amendment) Act, 2015 (to
the extent notified), Companies Act, 1956 and Companies Act, 2013 to
the extent applicable, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(d) the management has prepared the financial statements on a going concern
basis;
(e) The management has ensured that an internal audit system commensurate
with the size and nature of the business exists and is operating effectively.
14. For payments made to individuals, firms, companies and organizations in which
Directors are interested, please refer to Annexure 4.
For and on behalf of the Board
Chanda Kochhar N. S. Kannan
Chairperson Director
Ashvin Parekh Bhargav Dasgupta
Director Managing Director & CEO
Alok Kumar Agarwal Sanjeev Mantri
Executive Director Executive Director
Vikas Mehra Gopal Balachandran
Company Secretary Chief Financial Officer
Mumbai,
April 25, 2018
 Annexure - 1
Details of Claims Outstanding during the Preceding Five years
As at March 31, 2018 (` in lacs)
Product Fire Marine Cargo Marine Others Motor OD Motor TP Workmen's Public/Product Engineering Aviation Personal Health Credit Insurance Crop/Weather Others
Compensation Liability Accident Insurance
Period No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount
Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims
0-30 days 174 32,286.9 3,099 12,610.9 7 11,936.9 36,444 60,531.9 1,582 420,852.6 648 5,817.7 276 1,788.0 270 16,722.4 45 9,659.6 4,406 34,143.1 36,142 39,710.9 8 4,815.8 19 430,710.9 4,298 38,596.6
30 days to 6 months 174 54,668.1 1,526 3,566.0 5 725.7 9,964 7,277.9 6,569 39,183.4 304 499.9 579 140.9 117 2,470.4 226 954.1 159 625.3 632 1,406.6 1 2.8 142 6,957.8 1,424 1,686.0
6 Months to 1 Year 318 26,357.7 838 1,504.4 10 1,427.1 217 737.2 6,473 42,671.0 199 305.7 596 392.7 183 2,689.0 223 568.4 42 58.9 543 916.6 2 4.7 89 179.7 165 1,323.1
1 Year to 5 Years 1,420 36,430.0 673 4,133.6 62 8,168.4 16 80.0 25,507 127,818.1 19 21.8 35 1,134.1 465 6,199.5 573 6,331.8 25 38.3 1,468 2,048.9 16 121.7 512 13,582.2 215 2,724.7
More than 5 Years 351 3,964.3 65 444.9 71 1,412.9 - - 17,069 50,234.1 - - 0 1.2 152 2,404.7 60 498.3 - - - - 34 170.5 31 77.1 52 4,076.9
Grand Total 2,437 153,707.0 6,201 22,259.8 155 23,671.0 46,641 68,627.0 57,200 680,759.2 1,170 6,645.1 1,486 3,456.9 1,187 30,486.0 1,127 18,012.2 4,632 34,865.6 38,785 44,083.0 61 5,115.5 793 451,507.7 6,154 48,407.3

As at March 31, 2017 (` in lacs)

Product Fire Marine Cargo Marine Others Motor OD Motor TP Workmen's Public/Product Engineering Aviation Personal Health Credit Insurance Crop/Weather Others
Compensation Liability Accident Insurance
Period No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount
Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims
0-30 days 419 32,172.0 2,378 17,961.1 7 6,798.0 38,695 56,567.9 1,968 334,861.8 348 3,691.8 207 745.1 323 19,882.7 14 8,982.8 3,846 40,586.9 79,238 43,307.7 33 5,641.6 116 208,016.7 2,426 25,794.0
30 days to 6 months 512 26,464.9 1,645 6,266.9 10 6,993.6 10,496 6,825.2 7,438 29,124.1 362 622.9 345 294.2 150 3,871.0 81 2,082.3 599 1,058.4 1,494 2,228.5 5 20.2 83 475.0 991 1,836.4
6 Months to 1 Year 354 12,405.2 276 2,245.5 13 1,752.9 194 728.8 7,352 31,791.8 270 421.2 104 178.2 77 2,759.6 55 914.8 15 21.9 691 981.6 - - 179 1,013.2 80 1,244.8
1 Year to 5 Years 1,010 23,798.7 294 2,470.6 48 4,174.7 12 71.7 25,931 104,734.6 3 13.9 18 709.7 395 9,449.2 397 5,360.3 - - 1,129 1,587.7 14 118.7 496 13,798.6 164 2,154.5
More than 5 Years 232 2,604.8 47 379.0 69 1,227.2 - - 18,023 51,422.7 - - 1 2.1 135 2,268.5 28 280.3 - - - - 8 63.7 23 92.0 59 4,090.2
Grand Total 2,527 97,445.6 4,640 29,323.1 147 20,946.4 49,397 64,193.6 60,712 551,935.0 983 4,749.8 675 1,929.3 1,080 38,231.0 575 17,620.5 4,460 41,667.2 82,552 48,105.5 60 5,844.2 897 223,395.5 3,720 35,119.9

As at March 31, 2016 (` in lacs)

Product Fire Marine Cargo Marine Others Motor OD Motor TP Workmen's Public/Product Engineering Aviation Personal Health Credit Insurance Crop/Weather Others
management report

Compensation Liability Accident Insurance

Period No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount
Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims
0-30 days 538 18,832.8 1,116 7,610.3 7 1,275.5 42,298 43,533.5 2,028 279,256.1 208 2,965.0 1 637.6 281 8,831.8 5 3,705.0 3,411 21,520.3 45,606 33,909.2 32 565.0 105.0 3,459.1 2,059 14,521.7
30 days to 6 months 203 20,200.1 1,528 6,180.6 9 292.5 12,686 8,049.7 8,096 26,923.6 384 642.1 5 4.7 182 3,481.3 48 1,865.8 604 1,362.8 1,914 3,688.5 4 50.3 387.0 2,892.7 1,482 2,436.3
6 Months to 1 Year 224 5,100.9 579 3,341.8 10 664.5 388 921.5 7,438 25,562.4 170 292.9 4 24.0 95 4,292.8 53 672.3 - - 389 662.6 5 46.9 27.0 365.4 91 530.9
1 Year to 5 Years 886 19,425.8 268 3,727.2 40 2,905.3 80 316.7 27,587 87,496.1 - - 20 615.3 325 7,734.7 322 6,097.1 - - 644 797.7 29 158.4 468.0 13,580.0 155 4,539.2
More than 5 Years 219 2,533.5 51 1,205.2 64 924.6 - - 16,832 38,572.8 - - 1 1.9 122 1,173.3 18 284.8 - - - - 8 108.2 21.0 71.0 67 630.7
Grand Total 2,070 66,093.1 3,542 22,065.1 130 6,062.4 55,452 52,821.4 61,981 457,811.0 762 3,900.0 31 1,283.5 1,005 25,513.9 446 12,625.0 4,015 22,883.1 48,553 39,058.0 78 928.8 1,008 20,368.2 3,854 22,658.8

As at March 31, 2015 (` in lacs)

Product Fire Marine Cargo Marine Others Motor OD Motor TP Workmen's Public/Product Engineering Aviation Personal Health Credit Insurance Others Grand Total
Compensation Liability Accident
Period No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount
Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims
0-30 days 445 16,375.4 1,147 6,216.5 7 1,604.4 30,272 52,827.9 1,701 233,447.2 97 2,463.2 7 429.5 373 7,254.7 11 2,038.3 1,094 12,959.0 60,818 31,127.8 27 456.5 2,400 14,488.2 98,399 381,688.6
30 days to 6 months 302 11,651.5 1,401 4,084.0 11 2,871.3 9,105 6,145.5 7,702 16,971.0 448 725.6 6 63.6 192 3,091.4 30 514.0 764 2,634.3 4,223 3,971.1 9 61.3 1,334 2,342.0 25,527 55,126.6
6 Months to 1 Year 532 15,732.7 227 1,804.2 9 1,648.2 306 839.8 7,294 16,674.3 210 255.0 6 120.4 93 1,581.4 76 1,578.8 151 520.6 1,100 429.9 7 33.2 251 6,056.5 10,262 47,275.0
1 Year to 5 Years 931 19,106.1 190 3,378.6 43 2,916.9 47 165.0 32,423 80,044.9 4 5.9 14 94.5 309 9,366.9 229 5,406.0 444 1,702.4 411 743.8 32 237.6 781 15,290.9 35,858 138,459.5
More than 5 Years 207 2,523.3 42 154.7 63 947.4 - - 14,712 28,150.9 - - 3 4.3 166 1,125.9 8 93.8 - - - - 7 99.9 55 581.0 15,263 33,681.2
Grand Total 2,417 65,389.0 3,007 15,638.0 133 9,988.2 39,730 59,978.2 63,832 375,288.3 759 3,449.7 36 712.3 1,133 22,420.3 354 9,630.9 2,453 17,816.3 66,552 36,272.6 82 888.5 4,821 38,758.6 185,309 656,230.9

As at March 31, 2014 (` in lacs)

Product Fire Marine Cargo Marine Others Motor OD Motor TP Workmen's Public/Product Engineering Aviation Personal Health Credit Insurance Others Grand Total
Compensation Liability Accident
Period No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount No of Amount
Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims Claims
0-30 days 227 17,116.5 1,496 4,055.4 19 1,695.9 25,447 39,508.2 1,636 324,243.8 265 2,250.0 7 268.0 157 4,391.6 29 2,108.0 578 8,366.0 504,138 34,263.3 57 566.2 2,327 27,556.7 536,383 466,389.6
30 days to 6 months 317 12,236.1 1,264 3,984.2 13 1,914.3 8,018 5,426.2 7,850 14,958.0 514 558.8 2 50.8 240 4,247.6 43 1,691.6 1,193 1,738.0 7,931 3,499.1 34 342.9 1,456 6,686.0 28,875 57,333.6
6 Months to 1 Year 297 4,598.9 230 1,001.2 12 376.2 448 932.0 6,876 13,339.2 252 243.2 5 6.5 131 7,620.4 95 457.6 266 626.5 149 198.3 19 100.2 549 11,077.9 9,329 40,578.1
1 Year to 5 Years 1,260 11,926.1 347 3,514.4 43 937.5 39 218.5 35,801 84,633.8 7 41.4 7 11.4 512 6,801.8 123 5,928.4 703 1,555.0 366 1,302.7 10 57.0 327 5,449.4 39,545 122,377.4
More than 5 Years 129 1,106.7 84 176.1 62 781.3 - - 10,062 17,637.2 - - 3 9.3 82 923.0 4 20.6 - - - - 4 80.4 15 291.4 10,445 21,026.0
Grand Total 2,230 46,984.3 3,421 12,731.3 149 5,705.2 33,952 46,084.9 62,225 454,812.0 1,038 3,093.4 24 346.0 1,122 23,984.4 294 10,206.2 2,740 12,285.5 512,584 39,263.4 124 1,146.7 4,674 51,061.4 624,577 707,704.7
Continued

311
 management report
Continued
Annexure - 2
Details of Average Claim Settlement time for the Preceding Five Years*
Period For the year ended March For the year ended March For the year ended March For the year ended March For the year ended March
31, 2018 31, 2017 31, 2016 31, 2015 31, 2014
Product No of claims Average No of claims Average No of claims Average No of claims Average No of claims Average
settled Settlement settled Settlement time settled Settlement time settled Settlement time settled Settlement time
time (Days) (Days) (Days) (Days) (Days)
Fire 3,998 33 2,625 30 3,499 124 3,187 309 2,587 397
Marine Cargo 52,344 18 38,978 11 31,817 31 26,973 76 26,259 44
Marine Hull 18 757 16 479 33 785 44 842 69 1,026
Motor* 979,357 11 1,029,947 11 911,306 11 763,418 12 658,080 14
Workmen's Compensation 2,212 5 1,446 73 1,275 155 1,689 134 1,434 148
Public/Product Liability 1,262 194 342 110 110 180 212 52 4,125 60
Engineering 2,146 31 1,627 70 2,278 78 1,674 239 2,516 175
Aviation 375 269 345 819 199 192 135 246 175 296
Personal Accident 6,590 7 5,786 35 5,541 52 6,625 46 6,365 58
Health 443,790 5 1,040,618 8 611,066 6 2,584,015 9 5,698,323 13
Credit Insurance 69 20 84 107 93 122 96 270 45 119
Crop/Weather Insurance 3,985 35 2,096 97 2,549 38 - - - -
Others 40,898 15 25,623 33 20,727 54 24,659 46 16,202 43
Total 1,537,044 10 2,149,533 10 1,590,493 10 3,412,727 11 6,416,180 14
* The above ageing does not include Motor third party claims which have to be settled through MACT and other judicial bodies

Annexure - 3
Details of Claims intimated
Period For the year ended March 31, For the year ended March 31,
2018 2017
Product Claims Intimated Amount (` in Claims Intimated Amount (` in lacs)*
lacs)*
Fire 3,908 95,035.4 3,082 54,512.5
Marine Cargo 53,905 21,195.4 40,076 25,032.6
Marine Hull 26 3,108.2 33 12,172.4
Motor OD 976,601 165,439.3 1,023,892 176,066.0
Motor TP 21,152 142,853.7 25,088 134,849.2
Workmen's Compensation 2,399 3,926.3 1,667 3,223.8
Public/Product Liability 2,073 3,155.3 986 1,924.5
Engineering 2,253 8,381.0 1,702 13,430.3
Aviation 927 6,740.8 474 12,677.7
Personal Accident 6,762 21,329.1 6,231 14,242.6
Health 400,023 136,660.3 1,074,617 169,028.3
Credit Insurance 70 1,257.3 66 1,818.3
Crop Insurance 3,881 122,663.7 1,985 49,122.5
Others 43,332 26,704.0 25,489 19,992.0
Grand Total 1,517,312 758,449.8 2,205,388 688,092.7

* Amount of claims intimated includes change in reserve

312
management report
Continued
Annexure - 4
List of payments to parties in which Directors are Interested (` in lacs)

Sr. Entity in which Director is interested Name of Director Interested as For the year ended For the year ended
No. March 31, 2018 March 31, 2017
1 Aster DM Healthcare Private Limited Mr. Suresh Mathukrishna Kumar1 Member 36.7 0.6
2 Bombay Gymkhana Limited Ms. Chanda Kochhar Member 0.8 31.2
Mr. Dileep Choksi2 Member
3 Bharat Forge Limited Mrs. Lalita D. Gupte3 Director 2.4 0.0
4 FAL Corporation Mr. Chandran Ratnaswami4 Director 1,160.8 5,417.2
5 First Capital Insurance Limited Mr. Chandran Ratnaswami4 Director 1,261.7 1,989.7
Mr. Ramaswamy Athappan5 Director
6 ICICI Bank Limited Ms. Chanda Kochhar Director 11,758.5 21,023.6
Mr. N. S. Kannan Director
Mr. Dileep Choksi2 Director
7 ICICI Foundation for Inclusive Growth Ms. Chanda Kochhar Trustee 1,116.0 928.0
Mr. Bhargav Dasgupta Trustee
Mr. N. S. Kannan Trustee
8 ICICI Prudential Life Insurance Company Limited Ms. Chanda Kochhar Chairperson 119.4 104.5
Mr. N. S. Kannan Director
9 ICICI Prudential Asset Management Company Limited Ms. Chanda Kochhar Chairperson 118.6 0.1
Mr. N. S. Kannan Director
Mr. Ved Prakash Chaturvedi6 Director
Mr. Suresh Mathukrishna Kumar1 Director
10 ICICI Securities Limited Ms. Chanda Kochhar Chairperson 420.3 318.5
Mr. Uday Chitale7 Director
11 ICICI Securities Primary Dealership Limited Mr. N. S. Kannan Chairman 19.5 175.4
Mr. Ashvin Parekh Director
12 Janalakshmi Financial Services Private Limited Mr. Uday Chitale8 Director 1.2 4.3
13 Kirloskar Brothers Limited Mrs. Lalita D. Gupte3 Director 4.4 5.5
14 National Collateral Management Services Limited Mr. Chandran Ratnaswami4 Director 0.2 49.5
15 Thomas Cook (India) Limited Mr. Chandran Ratnaswami4 Director 1,144.9 3,684.3
16 Vedanta Limited Mrs. Lalita D. Gupte3 Director 34.8 7,075.6
17 Others9
Associated Chambers of Commerce and Industry of India (ASSOCHAM) Ms. Chanda Kochhar Member
Total Others 1.0 1.0

1 Mr. Suresh Mathukrishna Kumar appointed as Director in ICICI Lombard General Insurance Company Limited w.e.f. June 01, 2016.
2 Mr. Dileep Choksi has ceased to be Director in ICICI Lombard General Insurance Company Limited w.e.f. July 01, 2016.
3 Mrs. Lalita D. Gupte appointed as Director in ICICI Lombard General Insurance Company Limited w.e.f. October 18, 2016.
4 Mr. Chandran Ratnaswami ceased to be Director in ICICI Lombard General Insurance Company Limited w.e.f. July 02, 2017.
5 Mr. Ramaswamy Athappan ceased to be Director in ICICI Lombard General Insurance Company Limited w.e.f. June 08, 2017.
6 Mr. Ved Prakash Chaturvedi appointed as Director in ICICI Lombard General Insurance Company Limited w.e.f. July 13, 2016.
7 Mr. Uday Chitale has retired as Director in ICICI Securities Limited w.e.f. June 27, 2016.
8 Mr. Uday Chitale appointed as Director in ICICI Lombard General Insurance Company Limited w.e.f. April 19, 2016
9 Individual payments to parties during the period and aggregate payments during the previous period are less than ` 1 lac

313
 independent auditors’ report
to the Members of ICICI Lombard General Insurance Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of ICICI LOMBARD
GENERAL INSURANCE COMPANY LIMITED (“the Company”), which comprise
the Balance Sheet as at March 31, 2018, the Revenue accounts of fire, marine and
miscellaneous insurance (collectively known as the ‘Revenue account’), the Profit
and Loss account and the Receipts and Payments account for the year then ended,
the schedules annexed there to, a summary of the significant accounting policies and
other explanatory notes thereon.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
underwriting results, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
applicable Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014, the Insurance Act, 1938, Insurance
Laws (Amendment) Act, 2015 (to the extent notified), the Insurance Regulatory
and Development Authority Act, 1999, the Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditor’s Report of Insurance
Companies Regulations), 2002 (‘the Regulations’) and orders / directions prescribed
by the Insurance Regulatory and Development Authority of India (‘IRDAI’) in this
behalf and current practices prevailing within the insurance industry in India.
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provisions of the Act, the Insurance Act, 1938,
Insurance Laws (Amendment) Act, 2015 (to the extent notified), the Insurance
Regulatory and Development Authority Act, 1999, the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditor’s Report of
Insurance Companies Regulations), 2002 (‘the Regulations’) and orders / directions
prescribed by the Insurance Regulatory and Development Authority of India (‘IRDAI’),
the accounting and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and Rules made there under. We
conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement. An
audit involves performing procedures to obtain audit evidence about the amounts
and the disclosures in the financial statements. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company’s Directors, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Act, Insurance Act, 1938, Insurance Laws (Amendment) Act, 2015 (to the extent
notified), the Insurance Regulatory and Development Act, 1999 in the manner so
required and give a true and fair view in conformity with the accounting principles
generally accepted in India as applicable to insurance companies:
a. in the case of Balance Sheet, of the state affairs of the Company as at March 31,
2018;
b. in the case of Revenue Accounts, of the operating profit in Fire, Marine and
Miscellaneous business for the year ended on that date;
c. in the case of Profit and Loss Account, of the profit for the year ended on that
date; and
d. in case of Receipts and Payments Account, of the receipts and payments for the
year ended on that date.
314
Other Matters
The actuarial valuation of liabilities in respect of Incurred But Not Reported (the
“IBNR”), Incurred But Not Enough Reported (the “IBNER”) and Premium Deficiency
Reserve (the “PDR”) is the responsibility of the Company’s Appointed Actuary (the
“Appointed Actuary”). The actuarial valuation of these liabilities, that are estimated
using statistical methods as at March 31, 2018 has been duly certified by the
Appointed Actuary and in his opinion, the assumptions considered by him for such
valuation are in accordance with the guidelines and norms issued by the IRDAI and
the Institute of Actuaries of India in concurrence with the IRDAI. We have relied upon
the Appointed Actuary’s certificate in this regard for forming our opinion on the
valuation of liabilities for outstanding claims reserves and the PDR contained in the
financial statements of the Company.
Report on Other Legal and Regulatory Requirements
1. As required by the IRDA Financial Statements Regulations, we have issued
a separate certificate dated April 25, 2018 certifying the matters specified in
paragraphs 3 and 4 of Schedule C to the Regulations.
2. 
As required by the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance
Companies Regulations), 2002, in our opinion and according to the information
and explanations give to us, we report that:
a) We have sought and obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purposes of our
audit.
b) As the Company’s accounts are centralized and maintained at the corporate
office, no returns for the purposes of our audit are prepared at the branches
and other offices of the Company.
c) Proper books of account as required by law have been kept by the Company
so far as it appears from our examination of those books.
d) 
The Balance sheet, the Revenue account, the Profit and Loss account
and the Receipts and Payments account dealt with by this report are in
agreement with the books of account.
e) The aforesaid financial statements comply with the applicable Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and with the accounting principles
prescribed by the Regulations and orders/directions prescribed by IRDAI in
this regard.
f) Investments have been valued in accordance with the provisions of the
Insurance Act, 1938 and Insurance Laws (Amendment) Act, 2015 (to the
extent notified), the Regulations and orders/directions issued by IRDAI in
this regard.
g) On the basis of the written representations received from the directors as
on March 31, 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2018 from being appointed as a
director in terms of Section 164 (2) of the Act.
h) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in “Annexure A”.
i) With respect to the other matters to be included in the Auditor’s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer Note no. 5.2.21 to
the financial statements;
ii. The Company has made provision, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on long-
term contracts. The Company did not have any outstanding long term
derivative contracts – Refer Note no. 5.2.22 to the financial statements;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company} – Refer Note
no. 5.2.23 to the financial statements.
For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP
Chartered Accountants Chartered Accountants
(Firm Registration No. 302137E) (Firm Registration No. 003990S/S200018)
S N Chaturvedi R. Suriyanarayanan
Partner Partner
Membership No. 040479 Membership No. 201402
Mumbai, April 25, 2018
independent auditors’ report
Annexure ‘A’ to the Independent Auditor’s Report of even date on the Financial
Statements of ICICI Lombard General Insurance Company Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of ICICI
Lombard General Insurance Company Limited (“the Company”) as of March 31, 2018
in conjunction with our audit of the financial statements of the Company for the year
ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the “internal control over financial reporting criteria
established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India”. These
responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by
ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013,
to the extent applicable to an audit of internal financial controls. Those Standards
and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained
and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
Independent Auditors’ Certificate
To,
The Board of Directors,
ICICI Lombard General Insurance Company Limited,
ICICI Lombard House, 414, Veer Savarkar Marg Near Siddhivinayak Temple,
Prabhadevi Mumbai - 400 025
Dear Sirs,
(Referred to in paragraph 1 of our Independent Auditors’ Report on Other Legal and
Regulatory Requirements forming part of the Independent Auditors’ Report dated
April 25, 2018)
This certificate is issued in accordance with the terms of our engagement letter with
ICICI Lombard General Insurance Company Limited (the “Company”), wherein we
are requested to issue certificate for compliance with the provisions of paragraphs
3 and 4 of Schedule C of the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance Companies)
Regulations 2002, (the “Regulations”) read with regulation 3 of the Regulations.
MANAGEMENT’S RESPONSIBILITY
The Company’s Board of Directors is responsible for complying with the provisions
of The Insurance Act, 1938 (amended by the Insurance Laws (Amendment) Act
2015) (the “Insurance Act”), the Insurance Regulatory and Development Authority
Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance Companies)
Regulations, 2002 (the “IRDA Financial Statements Regulations”), orders/directions
Continued
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2018, based on
“the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India”.
Other Matter
The actuarial valuation of liabilities in respect of Incurred But Not Reported (the
“IBNR”), Incurred But Not Enough Reported (the “IBNER”) and Premium Deficiency
Reserve (the “PDR”) is the responsibility of the Company’s Appointed Actuary (the
“Appointed Actuary”). The actuarial valuation of these liabilities, that are estimated
using statistical methods as at March 31, 2018 has been duly certified by the
Appointed Actuary and in his opinion, the assumptions considered by him for such
valuation are in accordance with the guidelines and norms issued by the IRDAI and
the Institute of Actuaries of India in concurrence with the IRDAI. The said actuarial
valuations of liabilities for outstanding claims reserves and the PDR have been
relied upon by us as mentioned in Other Matters paragraph in our Audit Report
on the financial statements for the year ended 31st March, 2018. Accordingly, our
opinion on the internal financial controls over financial reporting does not include
reporting on the adequacy and operating effectiveness of the internal controls over
the valuation and accuracy of the aforesaid actuarial liabilities.
For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP
Chartered Accountants Chartered Accountants
(Firm Registration No. 302137E) (Firm Registration No. 003990S/S200018)
S N Chaturvedi R. Suriyanarayanan
Partner Partner
Membership No. 040479 Membership No. 201402
Mumbai, April 25, 2018
issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”)
which includes the preparation of the Management Report. This includes collecting,
collating and validating data and designing, implementing and monitoring of internal
controls suitable for ensuring compliance as aforesaid.
AUDITORS’ RESPONSIBILITY
Pursuant to the requirements, it is our responsibility to obtain reasonable assurance
and form an opinion based on our audit and examination of books and records as to
whether the Company has complied with the matters contained in paragraphs 3 and
4 of Schedule C of the Regulations read with regulation 3 of Regulations.
We audited financial statements of the Company as of and financial year ended March
31, 2018 on which we issued an unmodified audit opinion vide our report dated
April 25, 2018. Our audit of these financial statements were conducted in accordance
with the Standards on Auditing and other applicable authoritative pronouncements
issued by the Institute of Chartered Accountants of India (‘ICAI’). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. Our audit was not
planned and performed in connection with any transactions to identify matters that
may be of potential interest to third parties.
We conducted our examination in accordance with the Guidance Note on Reports or
Certificates for Special Purposes (Revised 2016) (the ‘Guidance Note’) issued by the
Institute of Chartered Accountants of India (‘ICAI’).
The Guidance Note requires that we comply with the independence and other
ethical requirements of the Code of ethics issued by the ICAI. We have complied
with the relevant applicable requirements of the Standard on Quality Control (‘SQC’)
1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services engagements.
315
 independent auditors’ report
Independent Auditors’ Certificate
OPINION
In accordance with information and explanations given to us and to the best of our
knowledge and belief and based on our examination of the books of account and
other records maintained by the Company for the year ended March 31, 2018, we
certify that:
1. We have reviewed the Management Report attached to the financial statements
for year ended March 31, 2018, and on the basis of our review, there is no
apparent mistake or material inconsistencies with the financial statements;
2. Based on management representations and compliance certificates submitted
to the Board of Directors by the officers of the Company charged with
compliance and the same being noted by the Board, nothing has come to our
attention that causes us to believe that the Company has not complied with the
terms and conditions of registration as stipulated by the IRDAI;
3. We have verified the cash balances, to the extent considered necessary and
securities relating to the Company’s loans and investments as at March 31,
2018, by actual inspection or on the basis of certificates / confirmations received
from the Custodian and/ or Depository Participants appointed by the Company,
as the case may be.
4. The Company is not a trustee of any trust; and
5. No part of the assets of the Policyholders’ Funds has been directly or indirectly
applied in contravention to the provisions of the Insurance Act relating to the
application and investments of the Policyholders’ Funds.
Independent Auditor’s Certificate on Corporate Governance
To,
The Board of Directors,
ICICI Lombard General Insurance Company Limited,
ICICI Lombard House, 414, Veer Savarkar Marg
Near Siddhivinayak Temple, Prabhadevi
Mumbai - 400 025
1 This Certificate is issued in accordance with the terms of our engagement letter
dated 21/03/2018.
2 We have examined the compliance of conditions of Corporate Governance
by ICICI Lombard General Insurance Company Limited (‘the Company’) for
the period 27 September 2017 to 31 March, 2018, as stipulated in Regulations
17 to 27, clauses (b) to (i) of Regulation 46(2), and paragraphs C, D and E of
Schedule V of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).
Management’s Responsibility
3 The compliance of Corporate Governance is the responsibility of the
management. This responsibility includes the designing, implementing and
maintaining operating effectiveness of internal control to ensure compliance
with the conditions of Corporate Governance as stipulated in the Listing
Regulations.
Auditor’s Responsibility
4 Pursuant to the requirements of the Listing Regulations, our responsibility is to
express an opinion as to whether the company has complied with the conditions
of Corporate Governance as stated in paragraph 2 above. Our responsibility
is limited to examining the procedures and implementation thereof, adopted
by the Company for ensuring the compliance with conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
5 We have examined the relevant records of the Company in accordance with the
applicable Generally Accepted Auditing Standards in India, the Guidance Note
on Certification of Corporate Governance issued by the Institute of Chartered
316
Continued
Restriction to use
This certificate is addressed to and provided to the Board of Directors of the
Company, solely for inclusion in the annual accounts of the Company as per the
Regulations and should not be used by any other person or for any other purpose.
We have no responsibility to update this certificate for events and circumstances
occurring after the date of this certificate. Accordingly, we do not accept or assume
any liability or any duty of care for any other purpose or to any other person to whom
this report is shown or into whose hands it may come without our prior consent in
writing.
For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP
Chartered Accountants Chartered Accountants
(Firm Registration No. 302137E) (Firm Registration No. 003990S/S200018)
S N Chaturvedi R. Suriyanarayanan
Partner Partner
Membership No. 040479 Membership No. 201402
Mumbai, April 25, 2018
ANNEXURE E
Accountants of India (‘ICAI’) and the Guidance Note on Reports or Certificates
for Special Purposes issued by the ICAI which requires that we comply with the
ethical requirements of the Code of Ethics issued by the ICAI.
6 We have complied with the relevant applicable requirements of the Standard
on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and
Reviews of Historical Financial information, and Other Assurance and Related
Services Engagements.
Opinion
7 Based on the procedures performed by us and to the best of our information and
according to the explanations provided to us, in our opinion, the Company has
complied, in all material respects, with the conditions of Corporate Governance
as stipulated in the Listing Regulations.
8 We state that such compliance is neither an assurance as to the future viability
of the Company nor the efficiency or effectiveness with which the management
has conducted the affairs of the Company.
Restriction on use
9  This certificate is addressed to and provided to Board of Directors of the
Company solely for the purpose of complying with the aforesaid Regulations
and may not be suitable for any other purpose. We have no responsibility to
update this certificate for events and circumstances occurring after the date
of this certificate. Accordingly, we do not accept or assume any liability or any
duty of care for any other purpose or to any other person to whom this report is
shown or into whose hands it may come without our prior consent in writing.
For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP
Chartered Accountants Chartered Accountants
(Firm Registration No. 302137E) (Firm Registration No. 003990S/S200018)
S N Chaturvedi R. Suriyanarayanan
Partner Partner
Membership No. 040479 Membership No. 201402
Mumbai, April 25, 2018
balance sheet profit and loss account
at March 31, 2018 for the year ended March 31, 2018

Particulars (` in 000’s) Particulars (` in 000’s)

March 31, March 31, Schedule March 31, March 31,

Schedule 2018 2017 2018 2017
1. Operating profit/(loss)
Sources of funds (a)  Fire Insurance 1,328,111 996,769
(b) Marine Insurance 469,366 (96,735)
Share capital 5 4,539,483 4,511,507 (c) Miscellaneous Insurance 7,439,615 6,172,521
2. Income from investments
Reserves and Surplus 6 40,872,146 32,741,436 (a) Interest, Dividend & Rent – Gross
(Refer note 5.2.5) 2,879,042 2,166,738
Share application money-pending allotment - 12,755 (b) Profit on sale/redemption of
investments 1,715,088 1,024,961
Fair value change account Less : Loss on sale/redemption of
investments (535,202) (99,475)
Shareholders funds 1,857,474 1,745,345 3. Other income
(a) Interest income on tax refund 80,176 17,245
Policyholders funds 5,481,242 5,027,093 (b) Profit on sale/discard of fixed assets 1,329 2,869
(c) Recovery of bad debts written off - -
Borrowings 7 4,850,000 4,850,000 Total (A) 13,377,525 10,184,893
4. Provisions (Other than taxation)
Total 57,600,345 48,888,136 (a) For diminution in the value of
investments 104,125 -
Application of funds (b) For doubtful debts 593,822 133,871
(c) For future recoverable under
Investments - Shareholders 8 47,283,646 39,826,416 reinsurance contracts (18,777) (39,357)
(d) Others - -
Investments - Policyholders 8A 134,643,034 109,678,099 5. Other expenses
(a) Expenses other than those related to
Loans 9 - - Insurance Business
(i) Employees' remuneration and
Fixed assets 10 4,059,857 3,826,654 other expenses 41,735 22,536
(ii) Managerial remuneration 70,934 77,610
(iii) Directors' fees 7,438 3,975
Deferred tax asset (Refer note 5.2.15) 2,114,128 872,289 (iv) CSR Expenditure (Refer note
5.2.17) 149,645 125,164
Current assets (v) Charges on issuance of Non-
convertible Debentures - 21,326
Cash and bank balances 11 5,918,164 1,940,353 (vi) Interest on Non-convertible
Debentures 400,125 270,770
Advances and other assets 12 103,477,760 77,364,944 (vii) Expense related to Investment
property 64,290 9,579
Sub-Total (A) 109,395,924 79,305,297 (viii) Listing Fees 1,340 -
(ix) Operating expenses borne by
Current liabilities 13 195,112,294 149,135,765 shareholders (refer note 5.1.9) - 427,891
(b) Bad debts written off - 5,313
Provisions 14 44,783,950 35,484,854 (c) Loss on sale/discard of fixed assets 517 25,201
(d) Penalty (Refer note 5.1.14) - -
Sub-Total (B) 239,896,244 184,620,619 Total (B) 1,415,194 1,083,879
Profit before tax 11,962,331 9,101,014
Net current assets (C) = (A - B) (130,500,320) (105,315,322) Provision for taxation:
(a) Current tax 4,586,991 2,017,157
Miscellaneous expenditure (to the extent not written (b) Excess Tax Provision written back of (578) (404,607)
off or adjusted) 15 - - earlier years
(c) Deferred tax (Income) / Expense
Debit balance in profit and loss account - - (Refer note 5.2.15) (1,241,839) 3,344,574 469,625 2,082,175
Profit after tax 8,617,757 7,018,839
Total 57,600,345 48,888,136 Appropriations
(a) Interim dividends paid during the period 679,988 1,571,008
(b) Proposed final dividend - -
Significant accounting policies and notes to the (c) Dividend distribution tax 138,430 319,820
financial statements 16 (d) Debenture Redemption Reserve 103,929 -
(e) Transfer to General Reserves - 922,347 - 1,890,828
Balance of Profit / (Loss) brought forward
The schedules referred to above & notes to accounts form an integral part of the Financial Statements from last year 17,072,284 11,944,273
Balance carried forward to Balance sheet 24,767,694 17,072,284
Basic earnings per share of ` 10 face value
(Refer note 5.2.14) ` 19.01 ` 15.66
Diluted earnings per share of ` 10 face value
(Refer note 5.2.14) ` 18.99 ` 15.58
Significant accounting policies & notes to 16
accounts
The schedules referred to above & notes to accounts form an integral part of the Financial Statements

As per our attached report of even date For and on behalf of the Board

For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP Chanda Kochhar N. S. Kannan
Chartered Accountants Chartered Accountants Chairperson Director
Firm Regn No.: 302137E Firm Regn No.: 003990S/S200018

SN Chaturvedi R. Suriyanarayanan Ashvin Parekh Bhargav Dasgupta

Partner Partner Director Managing Director & CEO
Membership No.: 040479 Membership No: 201402
Alok Kumar Agarwal Sanjeev Mantri
Executive Director Executive Director

Vikas Mehra Gopal Balachandran

Mumbai, April 25, 2018 Company Secretary Chief Financial Officer

317
 revenue accounts
for the year ended March 31, 2018

Registration No. 115 dated August 3, 2001

(` in 000’s)

Particulars Schedule Fire Marine Miscellaneous Total

2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17

1. Premiums earned (net) 1 1,440,912 1,237,079 1,957,559 1,920,765 65,718,877 58,478,198 69,117,348 61,636,042

2. Profit on sale/redemption of
investments 106,517 85,635 87,025 75,419 4,599,119 3,148,284 4,792,661 3,309,338

Less : Loss on sale/redemption of

investments (33,362) (8,379) (27,257) (7,379) (1,440,485) (308,031) (1,501,104) (323,789)

3. Others -

Foreign exchange gain / (loss) 4,324 (2,894) (2,293) (1,167) (15,545) (66,481) (13,514) (70,542)

Investment income from pool

(Terrorism and Nuclear) 226,613 207,096 - - 48,388 37,820 275,001 244,916

Miscellaneous Income 344 2,013 445 2,657 16,331 267,524 17,120 272,194

4. Interest, Dividend & Rent – Gross (Refer

note 5.2.5) 177,265 181,830 144,827 160,140 7,653,854 6,684,810 7,975,946 7,026,780

Total (A) 1,922,613 1,702,380 2,160,306 2,150,435 76,580,539 68,242,124 80,663,458 72,094,939

1. Claims Incurred (net) 2 620,754 846,510 1,060,780 1,612,373 51,465,704 47,084,432 53,147,238 49,543,315

2. Commission (net) 3 (482,064) (495,076) 247,683 180,149 (2,605,164) (4,026,376) (2,839,545) (4,341,303)

3. Operating expenses related to

insurance business 4 455,812 354,177 382,477 454,648 20,280,384 19,011,547 21,118,673 19,820,372

4. Premium deficiency - - - - - - - -

Total (B) 594,502 705,611 1,690,940 2,247,170 69,140,924 62,069,603 71,426,366 65,022,384

Operating Profit / (Loss) C = (A - B) 1,328,111 996,769 469,366 (96,735) 7,439,615 6,172,521 9,237,092 7,072,555

APPROPRIATIONS

Transfer to Shareholders' Account 1,328,111 996,769 469,366 (96,735) 7,439,615 6,172,521 9,237,092 7,072,555

Transfer to Catastrophe Reserve - - - - - - - -

Transfer to Other Reserves - - - - - - - -

Total (C) 1,328,111 996,769 469,366 (96,735) 7,439,615 6,172,521 9,237,092 7,072,555

Significant accounting policies and notes to

accounts 16

We certify that, to the best of our knowledge and according to the information and explanations given to us, and so far as appears from our examination of the Company’s
books of account, all expenses of management, wherever incurred, whether directly or indirectly, have been recognised in the Revenue Accounts as an expense to extent
allowable under Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance business)
Regulations, 2016.
The schedules referred to above & notes to accounts form an integral part of the Financial Statements

As per our attached report of even date For and on behalf of the Board

For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP Chanda Kochhar N. S. Kannan
Chartered Accountants Chartered Accountants Chairperson Director
Firm Regn No.: 302137E Firm Regn No.: 003990S/S200018

SN Chaturvedi R. Suriyanarayanan Ashvin Parekh Bhargav Dasgupta

Partner Partner Director Managing Director & CEO
Membership No.: 040479 Membership No: 201402
Alok Kumar Agarwal Sanjeev Mantri
Executive Director Executive Director

Vikas Mehra Gopal Balachandran

Mumbai, April 25, 2018 Company Secretary Chief Financial Officer

318
 Schedule – 1
Premium Earned (net)
(` in 000’s)
Particulars Fire Marine Miscellaneous Total
Marine- Marine- Marine- Motor-OD Motor-TP Motor- Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Compensa- Product Accident Insurance Insurance Weather Miscellaneous
tion Liability Insurance
2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18
Premium from direct
business written-net of
service tax and GST 9,165,035 2,878,747 783,192 3,661,939 30,622,414 21,872,270 52,494,684 539,994 308,122 2,480,854 670,307 4,530,364 18,488,310 440,071 23,710,568 7,078,298 110,741,572 123,568,546
Add: Premium on
reinsurance accepted 665,089 118,787 16,945 135,732 24,535 - 24,535 - 2,700 373,920 237,939 8,838 887,453 - - 95,994 1,631,379 2,432,200
schedules

Less: Premium on
reinsurance ceded 8,253,424 995,223 764,482 1,759,705 4,610,167 1,209,642 5,819,809 64,701 191,888 2,004,844 632,177 1,295,320 6,320,783 405,989 18,271,876 2,532,673 37,540,060 47,553,189
Net premium 1,576,700 2,002,311 35,655 2,037,966 26,036,782 20,662,628 46,699,410 475,293 118,934 849,930 276,069 3,243,882 13,054,980 34,082 5,438,692 4,641,619 74,832,891 78,447,557
Adjustment for change
in reserve for unexpired
risks 135,788 89,032 (8,625) 80,407 3,037,858 2,239,672 5,277,530 15,011 2,462 106,482 (63,488) 896,429 1,909,188 1,641 (8,536) 977,295 9,114,014 9,330,209
forming part of the financial statements

Total premium
earned (net) 1,440,912 1,913,279 44,280 1,957,559 22,998,924 18,422,956 41,421,880 460,282 116,472 743,448 339,557 2,347,453 11,145,792 32,441 5,447,228 3,664,324 65,718,877 69,117,348

Premium Earned (net)

(` in 000’s)
Particulars Fire Marine Miscellaneous Total
Marine- Marine- Marine- Motor-OD Motor-TP Motor- Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Compensa- Product Accident Insurance Insurance Weather Miscellaneous
tion Liability Insurance
2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17
Premium from direct
business written-net of
service tax 7,446,449 2,664,902 745,635 3,410,537 27,601,590 17,816,466 45,418,056 474,335 197,631 2,248,110 578,477 3,578,214 16,675,776 335,733 21,509,317 5,379,325 96,394,974 107,251,960
Add: Premium on
reinsurance accepted 727,167 134,510 31,547 166,057 25,120 24,429 49,549 - 1,723 284,037 457,206 10,342 495,006 - 2,554 158,955 1,459,372 2,352,596
Less: Premium on
reinsurance ceded 6,767,959 998,498 722,693 1,721,191 6,784,327 1,024,564 7,808,891 30,571 111,906 1,850,704 580,062 880,501 5,158,415 311,384 16,459,936 1,975,042 35,167,412 43,656,562
Net premium 1,405,657 1,800,914 54,489 1,855,403 20,842,383 16,816,331 37,658,714 443,764 87,448 681,443 455,621 2,708,055 12,012,367 24,349 5,051,935 3,563,238 62,686,934 65,947,994
Adjustment for change
in reserve for unexpired
risks 168,578 (33,510) (31,852) (65,362) 1,118,985 1,141,739 2,260,724 21,171 18,133 23,760 5,800 903,808 463,241 257 (11,019) 522,861 4,208,736 4,311,952
Total premium
earned (net) 1,237,079 1,834,424 86,341 1,920,765 19,723,398 15,674,592 35,397,990 422,593 69,315 657,683 449,821 1,804,247 11,549,126 24,092 5,062,954 3,040,377 58,478,198 61,636,042

319
 Schedule – 2
Claims Incurred (net)

320
(` in 000’s)
Particulars Fire Marine Miscellaneous Total
Marine- Marine- Marine- Motor-OD Motor-TP Motor- Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Compensa- Product Accident Insurance Insurance Weather Miscellaneous
tion Liability Insurance
2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18
Claims paid- Direct 3,352,732 1,955,970 266,290 2,222,260 14,883,180 8,086,500 22,969,680 198,228 218,631 990,783 314,079 745,992 9,623,984 199,292 11,736,375 1,668,135 48,665,179 54,240,171
Add: Re-insurance
accepted 47,215 20,827 5,579 26,406 - - - - - 161,481 478,484 - 354,950 - 6,110 760 1,001,785 1,075,406
Less: Re-insurance
ceded 2,677,897 622,953 218,299 841,252 3,094,261 2,499,505 5,593,766 10,821 110,001 842,168 303,756 108,551 804,540 180,382 8,712,063 440,791 17,106,839 20,625,988
Net Claims paid 722,050 1,353,844 53,570 1,407,414 11,788,919 5,586,995 17,375,914 187,407 108,630 310,096 488,807 637,441 9,174,394 18,910 3,030,422 1,228,104 32,560,125 34,689,589
Add: Claims
outstanding at the end
of the year 1,796,467 1,271,360 253,160 1,524,520 5,209,443 61,037,924 66,247,367 608,224 169,107 746,629 800,975 2,018,374 3,392,523 45,222 8,892,597 2,518,428 85,439,446 88,760,433
Less: Claims
outstanding at the
beginning of the year 1,897,763 1,589,498 281,656 1,871,154 4,657,076 46,887,278 51,544,354 444,746 141,383 878,630 689,728 2,095,940 3,916,841 47,912 4,568,255 2,206,078 66,533,867 70,302,784
Total claims incurred 620,754 1,035,706 25,074 1,060,780 12,341,286 19,737,641 32,078,927 350,885 136,354 178,095 600,054 559,875 8,650,076 16,220 7,354,764 1,540,454 51,465,704 53,147,238
schedules

Claims Incurred (net)

(` in 000’s)
forming part of the financial statements

Particulars Fire Marine Miscellaneous Total

Marine- Marine- Marine- Motor-OD Motor-TP Motor- Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Compensa- Product Accident Insurance Insurance Weather Miscellaneous
tion Liability Insurance
2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17
Claims paid- Direct 3,101,206 1,898,252 190,678 2,088,930 16,607,017 7,978,492 24,585,509 155,656 127,213 821,140 443,535 584,055 11,545,559 85,561 5,388,649 1,193,978 44,930,855 50,120,991
Add: Re-insurance
accepted 139,834 28,550 10,551 39,101 - 36,644 36,644 - - 113,953 595,736 3,729 400,801 - - 2,912 1,153,775 1,332,710
Less: Re-insurance
ceded 2,590,425 656,848 152,185 809,033 4,227,365 3,269,501 7,496,866 8,343 51,562 660,474 521,934 86,615 1,120,376 79,175 5,219,390 239,532 15,484,267 18,883,725
Net Claims paid 650,615 1,269,954 49,044 1,318,998 12,379,652 4,745,635 17,125,287 147,313 75,651 274,619 517,337 501,169 10,825,984 6,386 169,259 957,358 30,600,363 32,569,976
Add: Claims
outstanding at the end
of the year 1,897,763 1,589,498 281,656 1,871,154 4,657,076 46,887,278 51,544,354 444,746 141,383 878,630 689,728 2,095,940 3,916,841 47,912 4,568,255 2,206,078 66,533,867 70,302,784
Less: Claims
outstanding at the
beginning of the year 1,701,868 1,393,897 183,882 1,577,779 4,374,902 36,360,453 40,735,355 382,678 106,769 802,682 596,151 1,851,154 3,441,735 33,779 473,809 1,625,686 50,049,798 53,329,445
Total claims incurred 846,510 1,465,555 146,818 1,612,373 12,661,826 15,272,460 27,934,286 209,381 110,265 350,567 610,914 745,955 11,301,090 20,519 4,263,705 1,537,750 47,084,432 49,543,315
Continued
 Schedule – 3
Commission
(` in 000’s)
Particulars Fire Marine Miscellaneous Total
Marine- Marine- Marine- Motor-OD Motor-TP Motor- Works- Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Total men’s Product Accident Insurance Insurance Weather Miscellane-
Compensa- Liability Insurance ous
tion
2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18
Commission paid -Direct 400,769 283,205 8,676 291,881 3,580,233 2,664 3,582,897 53,806 13,393 140,561 11,549 460,996 1,571,184 38,750 1,804 550,834 6,425,774 7,118,424
Add: Commission on
re-insurance accepted 71,652 22,301 3,752 26,053 50 - 50 - 608 57,236 45,042 1,360 109,876 - - 4,689 218,861 316,566
schedules

Less: Commission on
re-insurance ceded 954,485 57,814 12,437 70,251 1,912,165 54,693 1,966,858 8,824 11,506 243,102 5,133 887,402 4,558,153 63,313 1,358,904 146,604 9,249,799 10,274,535
Net Commission (482,064) 247,692 (9) 247,683 1,668,118 (52,029) 1,616,089 44,982 2,495 (45,305) 51,458 (425,046) (2,877,093) (24,563) (1,357,100) 408,919 (2,605,164) (2,839,545)
forming part of the financial statements

Commission
(` in 000’s)
Particulars Fire Marine Miscellaneous Total
Marine- Marine- Marine- Motor-OD Motor-TP Motor- Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Cargo Others Total Total Compensa- Product Accident Insurance Insurance Weather Miscellane-
tion Liability Insurance ous
2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17
Commission paid -Direct 264,511 213,212 8,182 221,394 1,648,561 - 1,648,561 43,681 12,043 112,032 15,145 343,393 1,292,206 25,865 2,258 392,174 3,887,358 4,373,263
Add: Commission on
re-insurance Accepted 74,075 27,126 6,186 33,312 5 - 5 - 371 38,865 78,202 289 72,310 - 513 25,828 216,383 323,770
Less: Commission on
re-Insurance Ceded 833,662 58,487 16,070 74,557 1,735,117 44,558 1,779,675 3,558 3,871 310,981 11,591 593,897 3,760,775 50,774 1,497,096 117,899 8,130,117 9,038,336
Net Commission
(495,076) 181,851 (1,702) 180,149 (86,551) (44,558) (131,109) 40,123 8,543 (160,084) 81,756 (250,215) (2,396,259) (24,909) (1,494,325) 300,103 (4,026,376) (4,341,303)

Schedule- 3 A
Commission Paid - Direct
(` in 000’s)
Particulars 2017-18 2016-17
Agents 1,147,816 919,407
Brokers 3,531,668 1,875,372
Corporate agency 2,252,173 1,578,484
Motor Insurance Service Providers 182,761 -
Point of Sale 4,006 -
Referral - -
Total 7,118,424 4,373,263
Continued

321
 Schedule – 4
Operating expenses related to insurance business

322
(` in 000’s)
Marine Miscellaneous Total
Marine- Marine- Marine- Motor- OD Motor-TP Motor-Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Fire
Particulars Cargo Others Total Compensation Product Accident Insurance Insurance Weather Miscellaneous
Liability Insurance
2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018 2017-2018
Employees’ remuneration &
welfare benefits 214,671 167,816 3,084 170,900 1,037,740 1,037,227 2,074,967 33,309 41,558 113,080 15,368 456,889 1,168,300 9,394 193,238 444,337 4,550,440 4,936,011
Travel, conveyance and vehicle
running expenses 23,716 14,322 307 14,629 68,266 79,140 147,406 3,017 5,685 12,487 2,116 34,447 103,124 980 39,353 36,307 384,922 423,267
Training expenses 2,352 1,879 31 1,910 16,354 14,680 31,034 271 163 1,184 231 3,271 12,330 28 2,172 4,613 55,297 59,559
Rents, rates & taxes* 20,420 24,296 443 24,739 326,956 266,315 593,271 5,854 1,734 10,915 3,837 53,411 167,131 503 70,521 67,531 974,708 1,019,867
Repairs & maintenance 13,316 11,202 275 11,477 161,979 151,368 313,347 3,956 2,332 7,183 2,322 40,855 121,510 436 37,652 41,967 571,560 596,353
Printing & stationery 1,822 2,195 40 2,235 33,939 28,777 62,716 565 206 989 317 5,808 20,610 42 5,891 5,506 102,650 106,707
Communication 11,322 8,123 148 8,271 113,619 101,182 214,801 2,054 1,097 5,755 1,058 55,590 124,636 252 18,725 84,079 508,047 527,640
Legal & professional charges 21,345 22,840 387 23,227 279,895 243,868 523,763 4,828 2,789 11,018 2,626 44,742 190,817 33,925 246,982 86,850 1,148,340 1,192,912
Auditors' fees, expenses etc
(a) as auditor 361 458 8 466 5,954 4,725 10,679 109 28 194 63 742 2,985 8 1,244 1,061 17,113 17,940
(b) as adviser or in any other
capacity, in respect of
(i) Taxation matters - - - - - - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - - - - - - -
(iii) Management
services; and - - - - - - - - - - - - - - - - - -
(c) in any other capacity 39 40 2 42 179 145 324 5 12 30 12 31 148 - 37 59 658 739
Advertisement and publicity 25,240 16,051 204 16,255 436,859 441,726 878,585 4,683 606 9,022 1,023 100,055 363,844 272 25,464 338,289 1,721,843 1,763,338
Interest & Bank charges 1,224 1,398 15 1,413 71,252 58,734 129,986 601 51 771 72 9,515 30,232 19 896 19,076 191,219 193,856
Others
schedules

(a) Business support services 16,832 23,709 38 23,747 3,281,562 2,194,808 5,476,370 22,489 1,009 18,953 201 75,673 117,591 75 3,447 51,951 5,767,759 5,808,338
(b) Sales promotion 81,798 57,662 315 57,977 855,093 996,566 1,851,659 27,845 3,715 40,435 1,881 374,768 846,762 686 42,522 538,709 3,728,982 3,868,757
(c) Miscellaneous expenses 10,613 12,068 142 12,210 28,157 26,233 54,390 1,108 157 3,380 (2,978) 9,422 20,182 271 1,858 (16,576) 71,214 94,037
Depreciation 10,741 12,753 226 12,979 165,935 133,564 299,499 3,008 795 5,778 1,726 21,381 86,915 226 33,482 32,822 485,632 509,352
Service tax and GST on
- - - - - - - - - - - - - - - - - -
premium account
Total 455,812 376,812 5,665 382,477 6,883,739 5,779,058 12,662,797 113,702 61,937 241,174 29,875 1,286,600 3,377,117 47,117 723,484 1,736,581 20,280,384 21,118,673
** Rent expense is net off rental income of ` 20,155 thousand (previous period ` 27,999 thousand)
forming part of the financial statements

Operating expenses related to insurance business (` in 000’s)

Marine Miscellaneous Total
Marine- Marine- Marine- Motor- OD Motor-TP Motor-Total Worksmen’s Public/ Engineering Aviation Personal Health Credit Crop / Others Total-
Fire
Particulars Cargo Others Total Compensation Product Accident Insurance Insurance Weather Miscellaneous
Liability Insurance
2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017
Employees’ remuneration &
welfare benefits 145,051 181,264 5,413 186,677 1,358,312 1,093,342 2,451,654 54,749 10,535 72,381 36,282 207,064 825,325 8,203 161,932 308,725 4,136,850 4,468,578
Travel, conveyance and vehicle
running expenses 13,453 14,432 434 14,866 74,777 60,198 134,975 5,968 1,165 6,565 2,597 13,661 67,268 814 41,028 24,922 298,963 327,282
Training expenses 1,456 2,382 71 2,453 20,660 16,627 37,287 431 80 718 439 2,799 11,330 22 3,153 3,877 60,136 64,045
Rents, rates & taxes* 16,771 20,365 595 20,960 256,251 206,203 462,454 5,616 1,032 8,340 5,475 32,074 209,099 374 226,707 46,177 997,348 1,035,079
Repairs & maintenance 10,376 10,810 314 11,124 114,185 91,852 206,037 3,897 723 5,126 3,157 17,964 72,488 325 23,356 27,448 360,521 382,021
Printing & stationery 1,561 1,769 52 1,821 26,088 20,997 47,085 595 111 772 503 4,679 19,855 49 4,151 4,193 81,993 85,375
Communication 8,153 9,946 271 10,217 134,613 108,168 242,781 3,388 562 4,200 2,925 16,613 59,788 225 16,618 23,734 370,834 389,204
Legal & professional charges 13,153 17,394 512 17,906 215,746 173,640 389,386 5,714 1,077 6,519 4,397 30,744 165,633 17,387 280,109 35,403 936,369 967,428
Auditors' fees, expenses etc
(a) as auditor 349 449 14 463 5,029 4,048 9,077 111 22 170 114 675 2,994 6 1,259 888 15,316 16,128
(b) as adviser or in any other
capacity, in respect of
(i) Taxation matters - - - - - - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - - - - - - -
(iii) Management
services; and - - - - - - - - - - - - - - - - - -
(c) in any other capacity 36 46 2 48 134 112 246 6 2 16 7 31 215 1 105 56 685 769
Advertisement and publicity 13,518 17,319 371 17,690 429,906 344,976 774,882 7,477 929 7,672 7,173 48,888 149,922 171 15,041 54,640 1,066,795 1,098,003
Interest & Bank charges 2,277 2,928 70 2,998 60,400 48,488 108,888 1,116 153 1,243 1,084 7,259 22,514 32 748 8,262 151,299 156,574
Others
(a) Business support services 74,796 95,862 1,639 97,501 2,922,989 2,343,716 5,266,705 50,110 5,388 45,409 47,273 332,262 926,791 787 3,534 357,291 7,035,550 7,207,847
(b) Sales promotion 37,744 48,403 1,031 49,434 1,174,665 942,473 2,117,138 21,072 2,610 21,466 19,962 137,771 420,660 470 36,859 152,580 2,930,588 3,017,766
(c) Miscellaneous expenses 4,274 5,537 212 5,749 (3,933) (2,802) (6,735) 427 243 1,773 577 1,681 28,129 93 27,904 5,008 59,100 69,123
Depreciation 11,209 14,312 429 14,741 170,182 137,022 307,204 3,630 701 5,485 3,700 22,403 97,633 201 39,198 29,045 509,200 535,150
Service tax on premium
- - - - - - - - - - - - - - - - - -
account
Total 354,177 443,218 11,430 454,648 6,960,004 5,589,060 12,549,064 164,307 25,333 187,855 135,665 876,568 3,079,644 29,160 881,702 1,082,249 19,011,547 19,820,372
Continued

* Rent expense is net off rental income of ` 27,999 thousand (previous year ` 26,489 thousand)
schedules
forming part of the financial statements Continued
Schedule – 5 Schedule- 8
Share CapitaL Investments - shareholders
(` in 000’s) (` in 000’s)
Particulars At At Particulars At At
March 31, March 31, March 31, 2018 March 31, 2017
2018 2017
Long term investments
Authorised Capital
475,000,000 (previous year : 475,000,000) Equity Shares of ` 10 each 4,750,000 4,750,000 1. 
Government securities and Government
Issued Capital guaranteed bonds including
453,948,304 (previous year : 451,150,686) Equity Shares of ` 10 each 4,539,483 4,511,507 Treasury Bills 13,784,821 11,308,734
Subscribed Capital
2. Other Approved Securities (note 3 below) - 64,471
453,948,304 (previous year : 451,150,686) Equity Shares of ` 10 each 4,539,483 4,511,507
Called up Capital 3. Other Investments
453,948,304 (previous year : 451,150,686) Equity Shares of ` 10 each 4,539,483 4,511,507 (a) Shares
Less : Calls unpaid
(i) Equity (note 4 below) 6,572,485 5,717,359
Add : Equity Shares forfeited (Amount originally paid up) - -
Less : Par value of Equity Shares bought back - - (ii) Preference 12,353 15,356
Less : (i) Preliminary Expenses to the extent not written off - - (b) Mutual Funds - -
(ii) Expenses including commission or brokerage on underwriting - - (c) Debentures/ Bonds (note 5 below) 9,581,511 6,015,647
or subscription of shares
Total 4,539,483 4,511,507 (d) Investment Properties-Real Estate (note 6
below) 1,415,907 1,447,046
Note:
Of the above, 253,843,806 shares are held by the holding company, ICICI Bank (e) Other Securities 1,333,342 1,272,356
Limited (previous year : 285,605,284 shares) 4. Investments in Infrastructure and Housing 11,020,771 9,284,227
Schedule – 5A Total Long Term Investments 43,721,190 35,125,196
Share Capital Short term investments
Pattern of shareholding
1. 
Government securities and Government
[As certified by the management]
guaranteed bonds including
Shareholder At March 31, 2018 At March 31, 2017
Treasury Bills - 255,705
Number of % of Holding Number of % of Holding
Shares Shares 2. Other Approved Securities (note 7 below) 775,491 1,773,835
Promoters 3. Other Investments
- Indian (ICICI Bank 253,843,806 55.92% 285,605,284 63.31% (a) Shares
Limited)
(i) Equity - -
- Foreign (FAL - 0.00% 154,777,462 34.31%
Corporation) (ii) Preference - -
Others (b) Mutual Funds - -
- Indian 76,703,219 16.90% 10,436,090 2.31% (c) Debentures/ Bonds 544,090 129,152
- Foreign 123,401,279 27.18% 331,850 0.07%
(d) Other Securities (note 8 below) 1,007,030 1,592,410
Total 453,948,304 100.00% 451,150,686 100.00%
4. Investments in Infrastructure and Housing 1,235,845 950,118
Schedule – 6 Total Short Term Investments 3,562,456 4,701,220
Reserves and Surplus
(` in 000’s) Total investments 47,283,646 39,826,416
Particulars At At Notes:
March 31, 2018 March 31, 2017 1. Aggregate book value of investments (other than listed equities) is ` 40,078,436
1. Capital Reserve - - thousand (previous year: ` 33,561,109 thousand).
2. Capital Redemption Reserve - -
3. Share Premium (refer note 4.17) Aggregate market value of investments (other than listed equities) is
2. 
Opening balance 15,335,510 15,003,165 ` 40,126,619 thousand (previous year: ` 34,656,388 thousand).
Additions during the period 331,371 332,345 3. Long term other approved securities includes fixed deposit amounting to ` Nil
Deductions during the period- share issue expenses - - (previous year Fixed deposits of ` 64,471 thousand).
Closing balance 15,666,881 15,335,510
4. General Reserves 4. Includes investments qualifying for Infrastructure and Housing investments of
Opening balance 333,642 333,642 ` 473,190 thousand (previous year ` 622,392 thousand).
Additions during the period - - 5. Includes investments in Perpetual Bonds of ` 3,661,663 thousand (previous year
Deductions during the period - - ` Nil).
Closing balance 333,642 333,642
Less: Debit balance in Profit and Loss Account - - 6. 
Investment Properties-Real Estate is shown at cost less accumulated
Less: Amount utilised for Buy-back - - depreciation of ` 94,140 thousand (previous year ` 57,094 thousand). The
5. Catastrophe Reserve - - fair value of Real Estate is ` 1,699,752 thousand (previous year ` 1,780,692
6. Other Reserves - - thousand) which is based on a valuation report.
Debenture Redemption Reserve 7. Short term other approved securities includes Certificate of Deposits amounting
Opening balance - - to ` 475,729 thousand, Fixed deposits amounting to ` 63,276 thousand and
Additions during the period 103,929 Commercial Paper amounting to ` 236,486 thousand (previous year Certificate
Deductions during the period - of Deposits amounting to ` 1,114,742 thousand, Fixed deposits amounting to
Closing balance 103,929 - ` 290,803 thousand and Commercial Paper amounting to ` 368,290 thousand).
7. Balance of Profit in Profit and Loss Account 24,767,694 17,072,284
TOTAL 40,872,146 32,741,436 Includes investment in mutual fund amounting to ` 1,007,030 thousand
8. 
(previous year ` 1,592,410 thousand).
Schedule- 7
9. 
Investment assets have been allocated in the ratio of policyholders and
Borrowings
shareholders funds (refer note 4.8)
(` in 000’s)
Particulars At At
March 31, 2018 March 31, 2017
Debentures/ Bonds (refer note 5.2.18) 4,850,000 4,850,000
Banks - -
Financial Institutions - -
Others - -
Total 4,850,000 4,850,000

323
 schedules
forming part of the financial statements Continued
Schedule- 8A Schedule- 9
INVESTMENTS - POLICYHOLDERS Loans
(` in 000’s) (` in 000’s)
Particulars At At Particulars At At
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Long term investments Security wise classification
Government securities and Government
1.  Secured
guaranteed bonds including (a) On mortgage of property
Treasury Bills 40,678,131 32,543,329 (aa) In India - -
2. 
Other Approved Securities (note 3 below) - 185,529 (bb) Outside India - -
Other Investments
3.  (b) On Shares, Bonds, Govt. Securities - -
(a) Shares (c) Others - -
  (i) Equity (note 4 below) 19,394,985 16,452,935 Unsecured - -
  (ii) 
Preference 36,452 44,192 Total - -
 (b) Mutual Funds - - Borrower wise classification
 (c) Debentures/ Bonds (note 5 below) 28,274,431 17,311,326 (a) Central and State Governments - -
 (d) Investment Properties-Real Estate (note 6 below) - - (b) Banks and Financial Institutions - -
 (e) Other Securities 3,263,269 3,006,800 (c) Subsidiaries - -
4. 
Investments in Infrastructure and Housing 32,521,594 26,717,370 (d) Industrial Undertakings - -
Total Long Term Investments 124,168,862 96,261,481 (e) Others - -
Short term investments Total - -
Government securities and Government
1.  Performance wise classification
guaranteed bonds including (a) Loans classified as standard
 Treasury Bills - 735,845 (aa) In India - -
2. 
Other Approved Securities (note 7 below) 2,288,423 5,104,595 (bb) Outside India - -
3. 
Other Investments (b Non-performing loans less provisions
 (a) Shares
  (i) Equity - - (aa) In India - -
  (ii) 
Preference - - (bb) Outside India - -
 (b) Mutual Funds - - Total - -
 (c) Debentures/ Bonds 1,605,574 371,661
 (d) Other Securities (note 8 below) 2,933,276 4,470,348 Maturity wise classification
4. 
Investments in Infrastructure and Housing 3,646,899 2,734,169 (a) Short Term - -
Total Short Term Investments 10,474,172 13,416,618
(b) Long Term - -
Total investments 134,643,034 109,678,099
Notes: Total - -
1. Aggregate book value of investments (other than listed equities) is ` 113,380,965 Note:- There are no loans subject to restructuring (previous year: ` Nil).
thousand (previous year: ` 91,649,161 thousand).
2.  Aggregate market value of investments (other than listed equities) is
` 112,685,496 thousand (previous year: ` 93,840,089 thousand).
3. Long term other approved securities includes fixed deposit amounting to ` Nil
(previous year Fixed deposits of ` 185,529 thousand).
4. Includes investments qualifying for Infrastructure and Housing investments of
` 1,396,354 thousand (previous year ` 1,791,069 thousand).
5. Includes investments in Perpetual Bonds of ` 10,812,754 thousand (previous
year ` Nil).
6. Investment Properties-Real Estate is shown at cost less accumulated
depreciation of ` NIL (previous year ` Nil).
7. Short term other approved securities includes Certificate of Deposits amounting
to ` 1,403,847 thousand, Fixed deposits amounting to ` 186,724 thousand and
Commercial Paper amounting to ` 697,852 thousand (previous year Certificate
of Deposits amounting to ` 3,207,915 thousand, Fixed deposits amounting to
` 836,847 thousand and Commercial Paper amounting to ` 1,059,833 thousand).
8.  Includes investment in mutual fund amounting to ` 2,933,276 thousand
(previous year ` 4,470,348 thousand).
9.  Investment assets have been allocated in the ratio of policyholders and
shareholders funds (refer note 4.8 in Schedule 16)
Schedule - 10
Fixed Assets
(` in 000's)
Particulars Cost/ Gross Block Depreciation Net Block
April 01, Additions Deductions March 31, April 01, For the year On Sales/ March 31, March 31, March 31,
2017 2018 2017 ended Adjustments 2018 2018 2017
Goodwill - - - - - - - - - -
Intangibles - Computer Software 3,245,615 317,315 - 3,562,930 2,505,224 344,337 - 2,849,561 713,369 740,391
Land-Freehold 2,411,770 - - 2,411,770 - - - - 2,411,770 2,411,770
Leasehold Property - - - - - - - - - -
Buildings 237,611 - - 237,611 37,273 14,861 - 52,134 185,477 200,338
Furniture & Fittings 681,293 21,161 15,648 686,806 556,983 52,521 15,581 593,923 92,883 124,310
Information Technology Equipment 474,673 33,446 964 507,155 412,573 53,266 826 465,013 42,142 62,100
Vehicles 20,959 86,232 2,271 104,920 3,394 14,358 303 17,449 87,471 17,565
Office Equipment 409,572 14,042 24,378 399,236 250,539 30,150 23,841 256,848 142,388 159,033
Others - - - - - - - - - -
Total 7,481,493 472,196 43,261 7,910,428 3,765,986 509,493 40,551 4,234,928 3,675,500 3,715,507
Work in Progress 384,357 111,147
Grand total 7,481,493 472,196 43,261 7,910,428 3,765,986 509,493 40,551 4,234,928 4,059,857 3,826,654
Previous year 7,131,148 525,264 174,919 7,481,493 3,400,867 522,888 157,769 3,765,986 3,826,654

324
schedules
forming part of the financial statements Continued
Schedule - 11 Schedule - 13
Cash and Bank Balances Current Liabilities
(` in 000's) (` in 000’s)
Particulars At At
March 31, March 31, Particulars At At
2018 2017
March 31, March 31,
Cash (including cheques, drafts and stamps) 312,780 384,031 2018 2017
Balances with scheduled banks :
(a) Deposit Accounts Agents’ Balances 119,752 85,059
(aa) Short-term (due within 12 months) * 3,044,078 322,769 Balances due to other insurance
(bb) Others - - companies (net) 19,903,868 8,101,889
(b) Current Accounts 2,561,306 1,233,553 Deposits held on re-insurance
(c) Others - - ceded 130,227 6,303,568
Money at Call and Short Notice Premiums received in advance 295,161 882,918
(a) With Banks - - Unallocated Premium 4,197,457 7,269,087
(b) With other institutions - - Sundry Creditors 4,473,169 2,958,050
Others - - Due to subsidiaries/ holding
Total 5,918,164 1,940,353 company 84,844 53,968
* Other than Fixed Deposits forming part of Investment assets which is reflected Claims Outstanding (gross) 159,160,313 118,050,618
under Schedule 8 and Schedule 8A - Investments Due to Officers/ Directors - -
* Includes Fixed Deposit of ` 540,100 thousand (previous year ` Nil) placed with BSE Unclaimed amount of
Ltd as a part of Listing Obligation (refer note 5.1.2) policyholders (refer note no.
5.2.13) 1,122,939 1,249,546
Add: investment income accruing
Schedule - 12 on unclaimed amount 138,002 1,260,941 80,734 1,330,280
Advances and Other Assets (` in 000’s)
Others:
Particulars At At - Statutory Dues 311,261 405,848
March 31, March 31, - Salary Payable 4,712 4,716
2018 2017 - Collections - Environment Relief
Advances fund (refer note no. 5.2.8) 1,265 919
Reserve deposits with ceding - Book Overdraft 3,243,945 2,565,470
companies 1,473 1,472 - Employee rewards 1,122,791 723,892
Application money for investments - - - Deposits 40,790 36,810
Prepayments 267,133 109,594 - Interim dividends payable 179 149
- Dividend distribution tax on
Advances to Directors / Officers - -
interim dividend - 91,754
Advance tax paid and taxes
- Interest accrued but not due
deducted at source (net of
on Borrowings 270,770 270,770
provision for tax) 659,582 1,760,035
- Service Tax / GST Liability 490,849 5,486,562 - 4,100,328
MAT credit entitlement - 266,522 Total 195,112,294 149,135,765
Others
Schedule - 14
- Sundry Advances & Deposits 943,766 521,310
Provisions
- Provision for doubtful debts (6,166) (6,165)
(` in 000’s)
- Surplus in Gratuity fund - 2,280
- Advance for Investment in property - - Particulars At At
- Advance for IPO Expenses - March 31, March 31,
- Advance to Employees against 2018 2017
expenses 522 938,122 153 517,578 Reserve for unexpired risk 44,377,741 35,047,532
Total (A) 1,866,310 2,655,201 Less: Unabsorbed enrollment
Other Assets costs - Government Schemes - 44,377,741 - 35,047,532
Income accrued on investments/ Reserve for premium deficiency - -
deposits 4,677,873 3,425,923 For taxation (less advance tax paid
Outstanding Premiums 20,009,217 19,935,390 and taxes deducted at source) - -
Less : Provisions for doubtful debts 679,489 19,329,728 132,752 19,802,638 For proposed dividends - -
Agents’ Balances - - For dividend distribution tax - -
Foreign Agencies’ Balances - - Others
- Gratuity 84,055 -
Due from other Entities carrying on
- Long term performance pay 218,447 283,449
Insurance business (net) (including
- Accrued leave 73,639 105,028
reinsurers) 77,092,786 51,156,475
- For future recoverable under
Less : Provisions for doubtful debts 1,213,040 75,879,746 1,165,955 49,990,520
reinsurance contracts 30,068 406,209 48,845 437,322
Due from subsidiaries / holding Total 44,783,950 35,484,854
company - -
Assets held for unclaimed amount
of policyholders 1,286,156 1,203,787 Schedule - 15
Add: investment income accruing Miscellaneous expenditure
on unclaimed amount 138,002 1,424,158 80,734 1,284,521 (To the extent not written off or adjusted)
Others
(` in 000’s)
- Service Tax and GST unutilised
Particulars At At
credit - 55,993
- Service Tax and GST paid in March 31, March 31,
advance - 104,341 2018 2017
- Unsettled investment contract Discount allowed on issue of shares/ debentures - -
receivable 259,010 - Others - -
- Margin deposit 40,100 40,100 Total - -
- Salvage stock - 5,083
- Sundry receivable 835 299,945 624 206,141
Total (B) 101,611,450 74,709,743
Total (A+B) 103,477,760 77,364,944

325
 schedules
forming part of the financial statements
SCHEDULE - 16
Significant accounting policies and notes forming part of the financial statements for
the year ended March 31, 2018
1 Background
ICICI Lombard General Insurance Company Limited (‘the Company’) was
incorporated on October 30, 2000 as a joint venture between ICICI Bank Limited
and Fairfax Financial Holdings Limited. The joint-venture agreement dated
October 4, 2000 (as amended/restated from time to time) entered among Fairfax
Financial Holdings and ICICI Bank was terminated pursuant to a termination
agreement executed on July 3, 2017.
The Company obtained Regulatory approval to undertake General Insurance
business on August 3, 2001 from the Insurance Regulatory and Development
Authority of India (‘IRDAI’) and holds a valid certificate of registration.
During the year, the Company completed its Initial Public Offering (IPO) by way
of an offer for sale of 86,247,187 equity shares of ` 10 each at a price of ` 661
per equity share, by ICICI Bank Limited, the Promoter Selling Shareholder and
FAL Corporation, the Investor Selling Shareholder aggregating to ` 57,009,391
thousand. The equity shares of the Company are listed on BSE Limited and
National Stock Exchange from September 27, 2017.
2 Basis of preparation of financial statements
The financial statements have been prepared and presented under the historical
cost convention, unless otherwise specifically stated, on the accrual basis of
accounting, and comply with the applicable accounting standards referred to
in section 133 of the Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014, and in accordance with the provisions of the Insurance
Act, 1938, Insurance Laws (Amendment) Act, 2015 (to the extent notified),
Insurance Regulatory and Development Authority Act, 1999, the Insurance
Regulatory and Development Authority of India (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies Regulations), 2002
(‘the Regulations’) and orders / directions prescribed by the IRDAI in this
behalf, the provisions of the Companies Act, 2013 (to the extent applicable) in
the manner so required and current practices prevailing within the insurance
industry in India.
3 Use of estimates
 The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities as of the
balance sheet date, reported amounts of revenues and expenses for the year
ended and disclosure of contingent liabilities as of the balance sheet date. The
estimates and assumptions used in these financial statements are based upon
management’s evaluation of the relevant facts and circumstances as on the
date of the financial statements. Actual results may differ from those estimates.
Any revision to accounting estimates is recognised prospectively in current and
future periods.
4 Significant accounting policies
4.1 Revenue recognition
Premium income
Premium including reinsurance accepted is recorded for the policy period at the
commencement of risk and for installment cases, it is recorded on installment
due dates. Reinstatement premium is recorded as and when such premiums are
recovered. Premium earned including reinstatement premium and re-insurance
accepted is recognised as income over the period of risk or the contract period
based on 1/365 method, whichever is appropriate on a gross basis net of service
tax/goods and service tax. Any subsequent revisions to premium as and when
they occur are recognised over the remaining period of risk or contract period,
as applicable.
Adjustments to premium income arising on cancellation of policies are
recognised in the period in which it is cancelled.
Income from reinsurance ceded
Commission on reinsurance ceded is recognised as income in the period of
ceding the risk.
Profit commission under reinsurance treaties, wherever applicable, is

recognised as income in the year of final determination of profits as confirmed
by reinsurers and combined with commission on reinsurance ceded.
Income earned on investments
Interest and rental income on investments are recognised on an accrual basis.
Accretion of discount and amortisation of premium relating to debt securities
and non-convertible preference shares is recognised over the holding/maturity
period on a constant yield basis.
Dividend income is recognised when the right to receive dividend is
established. Dividend income in respect of listed equity shares is recognised
on ex-dividend date.
Realised gain/loss on securities, which is the difference between the sale
consideration and the carrying value in the books of the Company, is recognised
326
Continued
on the trade date. In determining the realised gain/loss, cost of securities is
arrived at on ‘Weighted average cost’ basis. Further, in case of listed equity
shares and mutual fund units the profit or loss on sale also includes the
accumulated changes in the fair value previously recognised in the fair value
change account.
Sale consideration for the purpose of realised gain/loss is net of brokerage and
taxes, if any, and excludes interest received on sale.
4.2 Premium received in advance
This represents premium received during the period, where the risk commences
subsequent to the balance sheet date.
4.3 Reinsurance premium
Insurance premium on ceding of the risk is recognised in the period in which
the risk commences in accordance with reinsurance arrangements with the
reinsurers. Any subsequent revision to premium ceded is recognised in
the period of such revision. Adjustment to reinsurance premium arising on
cancellation of policies is recognised in the period in which they are cancelled.
4.4 Reserve for unexpired risk
Reserve for unexpired risk is recognised net of reinsurance ceded and represents
premium written that is attributable to, and is to be allocated to succeeding
accounting periods. For Fire, Marine Cargo and Miscellaneous business it is
calculated on a daily pro-rata basis, except in the case of Marine Hull business
it is computed at 100% of net premium written on all unexpired policies on the
balance sheet date.
4.5 Claims
Claims incurred comprise claims paid, estimated liability for outstanding claims
made following a loss occurrence reported and estimated liability for claims
Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported
(‘IBNER’). Further, claims incurred also include specific claim settlement costs
such as survey/legal fees and other directly attributable costs.
Claims (net of amounts receivable from reinsurers/coinsurers) are recognised
on the date of intimation based on internal management estimates or on
estimates from surveyors/insured in the respective revenue account(s).
Estimated liability for outstanding claims at balance sheet date is recorded net
of claims recoverable from/payable to co-insurers/reinsurers and salvage to the
extent there is certainty of realisation. Salvaged stock is recognised at estimated
net realisable value based on independent valuer’s report.
Estimated liability for outstanding claims is determined by the management on
the basis of ultimate amounts likely to be paid on each claim based on the
past experience and in cases where claim payment period exceeds four years
based on actuarial valuation. These estimates are progressively revalidated on
availability of further information.
IBNR reserves are provisions for claims that may have been incurred during the
accounting period but have not been reported or claimed. The IBNR provision
also includes provision, for claims that have been incurred but are not enough
reported (IBNER). The provision for IBNR and IBNER is based on actuarial
estimate duly certified by the Appointed Actuary of the Company. The actuarial
estimate is derived in accordance with relevant IRDAI regulations and Guidance
Note GN 21 issued by the Institute of Actuaries of India.
4.6 Acquisition costs
Acquisition costs are those costs that vary with, and are primarily related to the
acquisition of new and renewal of insurance contracts viz. commission, policy
issue expenses, etc. These costs are expensed in the period in which they are
incurred.
4.7 Premium deficiency
Premium deficiency is recognised at segmental revenue account level when
the sum of expected claim costs and related expenses and maintenance costs
(related to claims handling) exceed the reserve for unexpired risks. In computing
the overall Premium deficiency in Miscellaneous revenue account level, the
Premium deficiency arising out of reinsurance acceptances from declined risk
pool is not considered as per regulatory guidelines. The premium deficiency is
calculated and duly certified by the Appointed Actuary.
4.8 Investments
Investments are recorded at cost on trade date and include brokerage, transfer
charges, stamps etc., if any, and exclude interest accrued up to the date of
purchase.
(A) Classification
- Investments maturing within twelve months from balance sheet date and
investments made with the specific intention to dispose off within twelve
months are classified as ‘short term investments’.
- Investments other than ‘short term investments’ are classified as ‘long term
investments’.
- Investments that are earmarked, are allocated separately to policyholder’s
or shareholder’s, as applicable; balance investments are segregated
schedules
forming part of the financial statements
at Shareholder’s level and Policyholder’s level notionally based on
policyholder’s funds and shareholder’s funds at the end of period on the
basis prescribed by IRDAI.
(B) Valuation
Investments are valued as follows:
Debt securities and Non – convertible preference shares
All debt securities including government securities and non-convertible
preference shares and additional Tier 1 perpetual bonds are considered as
‘held to maturity’ and accordingly stated at amortised cost determined after
amortisation of premium or accretion of discount on a constant yield basis over
the holding period/maturity.
Equity shares and Convertible preference shares
Listed equities and convertible preference shares at the balance sheet date are
stated at fair value, being the last quoted closing price on the National Stock
Exchange and in case these are not listed on National Stock Exchange, then
based on the last quoted closing price on the Bombay Stock Exchange.
Mutual funds (Other than venture capital fund)
Mutual fund investments are stated at fair value, being the closing net asset
value at balance sheet date.
Continued
All assets including intangibles individually costing up to ` 5,000 are fully
depreciated/amortised in the period in which they are acquired.
Intangibles Assets
Intangible assets comprising computer software are stated at cost less
accumulated amortisation. Computer softwares including improvements are
amortised over a period of 4 years, being the management’s estimate of the
useful life of such intangibles.
Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that any asset may be impaired. If any such indication exists, the
carrying value of such assets is reduced to its recoverable amount and the
impairment loss is recognised in the profit and loss account. If at the balance
sheet date there is any indication that a previously assessed impairment loss no
longer exists, then such loss is reversed and the asset is restated to that extent.
4.11 Operating Lease
 Payments made towards assets/premises taken on operating lease are
recognised as an expense in the revenue account(s) and profit and loss account
over the lease term on straight-line basis.
4.12 Employee benefits

Investment Properties – Real Estate Provident fund

Investment Properties- Real Estate are stated at historical cost less accumulated This is a defined contribution scheme and contributions payable to the Regional
depreciation. Provident Fund Authority are provided on the basis of prescribed percentage of
salary and are charged to revenue account(s) and profit and loss account.
Investments other than those mentioned above are valued at cost.
Gratuity
(C) Fair Value Change Account Gratuity, which is a defined benefit scheme, is provided on the basis of
In accordance with the Regulations, unrealised gain/loss arising due to changes actuarial valuation including actuarial gains/losses at balance sheet date and is
in fair value of listed equity shares, convertible preference shares and mutual recognised in the revenue account(s) and profit and loss account.
fund investments are taken to the ‘fair value change account’. This balance in the
fair value change account is not available for distribution, pending realisation. Accrued leave
Compensated absences are provided based on actuarial valuation including
(D) Impairment of Investments actuarial gains/losses at balance sheet date and are recognised in the revenue
The Company assesses at each Balance Sheet date whether any impairment has account(s) and profit and loss account.
occurred in respect of investment in equity, units of mutual fund and investment
properties. The impairment loss, if any, is recognised in the profit and loss Long Term Performance Pay
account and the carrying value of such investment is reduced to its recoverable Long Term Performance Pay is provided based on actuarial valuation including
value. If on the assessment at balance sheet date a previously impaired loss actuarial gains/losses at balance sheet date and is recognised in the revenue
no longer exists, then such loss is reversed to the profit & loss account and the account(s) and profit and loss account.
investment is restated to that extent. 4.13 Foreign currency transactions
4.9 Employee Stock Option Scheme (“ESOS”)  Transactions denominated in foreign currencies are recorded at the rates
The Company follows the intrinsic method for computing the compensation prevailing on the date of the transaction. Foreign exchange denominated
cost, for options granted under the scheme(s). The difference if any, between monetary assets and liabilities, are restated at the rates prevalent at the date of
the intrinsic value and the grant price, being the compensation cost is amortised the balance sheet. The gains/losses on account of restatement and settlement
over the vesting period of the options. are recognised in the revenue account(s) and profit and loss account.
The premium or discount arising at the inception of a forward exchange
4.10 Fixed assets, Intangibles and Impairments contract, not intended for trading or speculation purpose, is amortised as
Fixed assets and depreciation expense or income as the case may be over the life of the contract. Exchange
Fixed assets are stated at cost less accumulated depreciation. Cost includes difference on account of change in rates of underlying currency at the expiry of
the purchase price and any cost directly attributable to bringing the asset to its the contract period is recognised in the revenue account(s) and profit and loss
working condition for its intended use. account. Any profit or loss arising on cancellation or roll-over of such a forward
exchange contract is recognised as income or expense for the contract period.
Depreciation on assets purchased/disposed off during the year is provided on
pro rata basis with reference to the date of additions/deductions. 4.14 Borrowings
Depreciation on fixed assets is provided using the rates based on the economic Borrowing costs are charged to the Profit and Loss account in the period in
useful life of assets as estimated by the management/limits specified in which they are incurred.
Schedule II of the Companies Act, 2013 as below:
4.15 Grants
Nature of Fixed Assets Management Useful life as per the limits The Company recognises grants only when there is reasonable assurance that
Estimate prescribed in Schedule II the conditions attached to them shall be complied with, and the grants will be
of Useful of the Companies Act, 2013 received.
Life in years in Years Grants related to assets are presented in the balance sheet by showing the
Building 60.00 60.00 grant as a deduction from the gross value of the assets concerned in arriving
Information Technology 3.00 6.00 at their book value. Grants related to revenue are recognised over the period
equipment – Servers & Networks necessary to match them with the related costs, for which they are intended to
Information Technology 3.00 3.00 compensate, on a systematic basis. Such grants are deducted in reporting the
equipment – Others related expense.
Furniture & Fittings 6.67 10.00
Office Equipment 10.00 5.00 Unspent balances of grants are carried forward to the subsequent years under
Vehicles 5.00 8.00 the head “Current Liabilities” for adjustment against expenses in those years.
In case of Office Equipment, the management estimate of the useful life is higher A grant that becomes refundable is treated as an extraordinary item. The
and for Information Technology equipment (Servers & Networks), Furniture & amount of such refundable grant related to revenue is applied first against any
Fitting and Vehicles, the management estimate of the useful life is lower than unamortised deferred credit remaining in respect of the grant. To the extent that
that prescribed in Schedule II of the Companies Act, 2013. This is based on the amount refundable exceeds any such deferred credit, or where no deferred
the consistent practices followed, past experience and is duly supported by credit exists, the amount is charged immediately to the profit and loss account.
technical advice. The amount refundable related to a specific fixed asset is recorded by increasing
Depreciation on Furniture & Fittings and Office Equipment in leased premises is the book value of the asset. Where the book value of the asset is increased,
recognised on a straight-line basis over the primary period of lease or useful life depreciation on the revised book value is provided.
as determined by management, whichever is lower.

327
 schedules
forming part of the financial statements Continued
4.16 Taxation (` in 000’s)
Current tax Particulars At At
The Company provides for income tax on the basis of taxable income for the March 31, March 31,
current accounting period in accordance with the provisions of the Income Tax 2018 2017
Act, 1961. Statutory demands/liabilities in dispute, not 4,166,548 302,737
provided for (Refer note-1 & 2 below)
In accordance with the recommendations contained in guidance note issued by
Reinsurance obligations to the extent not provided - -
the Institute of Chartered Accountants of India, Minimum Alternate Tax (‘MAT’)
for in accounts
credit is recognised as an asset to the extent there is convincing evidence that
Others : (Refer note-3, 4 & 5 below) 157,829 90,772
the Company will pay normal income tax in future by way of a credit to the profit
Note:
and loss account and shown as MAT credit entitlement.
(1) The Company has disputed the demand raised by Income Tax Authorities of
Deferred tax ` 227,099 thousand (previous year: ` 230,184 thousand), the appeals of which
Deferred tax assets and liabilities are recognised for the future tax consequences are pending before the appropriate Authorities. This excludes Income Tax
attributable to timing differences between the accounting income as per the demand related to Assessment Year 2003-04, 2005-06, 2006-07, 2008-09 & 2010-
Company’s financial statements and the taxable income for the year. 11 in respect of which the Company has received favorable appellate order,
Deferred tax charge or credit and the corresponding deferred tax liabilities or which is pending for effect to be given by the Assessing Authority.
assets are recognised using the tax rates that have been enacted or substantively (2) (i) The Company has disputed the demand raised by Service Tax Authorities of
enacted by the balance sheet date. ` 72,763 thousand (previous year: ` 72,553 thousand), the appeals of which
Deferred tax assets are recognised only to the extent there is reasonable are pending before the appropriate Authorities.
certainty that the assets can be realised in future, however, where there is (ii) 
The Company has received order from Goods & Service Tax Authority
unabsorbed depreciation or carried forward loss under taxation laws, deferred wherein demand (including interest and penalty) of ` 3,866,686 thousand
tax assets are recognised only if there is virtual certainty of realisation of such (previous year: ` Nil) has been raised on disallowance of certain input tax
assets. credits. The Company is contesting the disputed tax liability and is in the
Deferred tax assets are reviewed at each balance sheet date and appropriately process of filing an appeal before the appropriate Authorities.
adjusted to reflect the amount that is reasonably/virtually certain to be realised. (3) The Company has received a demand of ` 45,900 thousand from Government
of Uttar Pradesh seeking refund of premium on policies issued under the RSBY
4.17 Share issue expenses
scheme. The company holds outstanding claim reserves of ` 41,400 thousands
Share issue expenses are adjusted against share premium account.
against these RSBY Policies. The company has filed an appeal with National
4.18 Earnings per share Grievance Redressal Committee (NGRC)
The basic earnings per share is calculated by dividing the net profit after tax by (4) During the previous year, the Company has disputed the demand raised by
weighted average number of equity shares outstanding during the reporting Comprehensive Health Insurance Agency Kerala (CHIAK) of ` 90,772 thousand,
period. the appeal of which was pending before National Grievance Redressal
Number of equity shares used in computing diluted earnings per share Committee (NGRC). NGRC has decided the appeal against the company. Though
comprises the weighted average number of shares considered for basic earnings the company has decided to contest the order, the liability on this account has
per share and also weighted average number equity shares which would have been fully provided for during the year.
been issued on conversion of all dilutive potential shares. In computing diluted (5) Unclaimed amounts of Policyholder’s outstanding for a period of more than
earnings per share only potential equity shares that are dilutive are considered. 10 years as on September 30, 2017 of ` 153,329 thousand (Including interest
thereon of ` 19,651 thousand) (Previous year: ` NIL) has been transferred by the
4.19 Provisions and Contingencies Company to the Senior Citizen’s welfare fund and shown as contingent liability
 A provision is recognised when an enterprise has a present obligation as in terms of IRDAI circular no. IRDA/F&A/CIR/MISC/20/02/2018 dated February 6,
a result of past event and it is probable that an outflow of resources will be 2018.
required to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are not discounted to their present value and are determined 5.1.2 The assets of the Company are free from all encumbrances except for a fixed
based on best estimate required to settle the obligation at the balance sheet deposit of ` 540,100 thousand (previous year: ` NIL) placed with Yes Bank
date. These are reviewed at each balance sheet date and adjusted to reflect the Limited (Included in short term deposit account in Schedule – 11) for issuing
current best estimates. bank guarantee in favour of BSE Limited as part of listing obligation..
Contingent losses arising from claims other than insurance claims, litigation, 5.1.3 Estimated amount of commitment pertaining to contracts remaining to be
assessment, fines, penalties, etc. are recorded when it is probable that a liability executed in respect of fixed assets (net of advances) is ` 250,056 thousand
has been incurred and the amount can be reasonably estimated. (previous year: ` 169,917 thousand).
A disclosure for a contingent liability other than those under policies is made 5.1.4 Commitment in respect of loans is ` NIL (previous year: ` NIL) and investments
when there is a possible obligation or a present obligation that may, but is ` 909,308 thousand (previous year: ` 401,808 thousand).
probably will not require an outflow of resources. 5.1.5 Claims
Show Cause Notices issued by various Government Authorities are not Claims, less reinsurance paid to claimants in/outside India are as under:
considered as Obligation. When the demand notices are raised against such (` in 000’s)
show cause notices and are disputed by the Company, these are classified as Particulars For the For the
disputed obligations. year ended year ended
When there is a possible obligation or a present obligation in respect of which March 31, March 31,
the likelihood of outflow of resources is remote, no provision or disclosure is 2018 2017
made. In India 54,107,948 50,307,124
Outside India 1,207,629 1,146,577
4.20 Cash and cash equivalents Ageing of gross claims outstanding is set out in the table below:
Cash & cash equivalent include cash and cheques on hand, bank balances and
other investments (fixed deposits) with original maturity of three months or less (` in 000’s)
which are subject to insignificant risk of changes in values. Particulars For the For the
year ended year ended
5. Notes to accounts March 31, March 31,
5.1 Statutory disclosures as required by IRDAI 2018 2017
More than six months 35,125,420 28,733,262
5.1.1 Contingent liabilities Others 124,034,893 89,317,356
(` in 000’s) Claims settled and remaining unpaid for more than six months is ` NIL (previous
Particulars At At year: ` NIL).
March 31, March 31, Claims where the claim payment period exceeds four years:
2018 2017
Partly-paid up investments - - As per circular F&A/CIR/017/May-04, the claims made in respect of contracts
Claims, other than those under policies, not - - where claims payment period exceeds four years, are required to be recognised
acknowledged as debt on actuarial basis. Accordingly, the Appointed Actuary has certified the fairness
Underwriting commitments outstanding NA NA of the liability assessment, assuming ‘Nil’ discount rate.
Guarantees given by or on behalf of the Company - - In this context, the following claims have been valued on the basis of a
contractually defined benefit amount payable in monthly installments.
328
schedules
forming part of the financial statements Continued
Product Name: Personal protect on product segments. Support Group consists of Investments, Operations,
Legal, Finance and Accounts, Reinsurance, Technology etc. Expenses incurred
(` in 000’s) by Service and Support Groups are indirect in nature.
Particulars For the For the
year ended year ended Operating expenses relating to insurance business are allocated to specific
March 31, 2018 March 31, 2017 classes of business on the following basis:
Count Amount Count Amount - Direct expenses pertaining to Business Group that are directly identifiable
Intimated 483 467,156 306 208,335 to a product segment are allocated on actuals and other direct expenses
Paid 756 21,873 497 55,888 are apportioned in proportion to the net written premium of the product
Outstanding 356 298,011 370 300,400 within the Business Group. However, in case of retail business group, the
other expenses of its sub group are apportioned based on the net written
5.1.6 Sector wise details of the policies issued are given below: premium contributed by the respective sub group;
Sector For the year ended March 31, 2018 For the year ended March 31, 2017 - 
Expenses pertaining to Service Group are apportioned directly to the
GDPI No. of % of No. of % of GDPI No. of % of No. of % of
product to which it pertains. In case of multiple products, expenses are
` in 000’s Policies Policy lives GDPI ` in 000’s Policies Policy lives GDPI apportioned in proportion to the net written premium of the multiple
Rural 27,087,941 717,698 3.05 - 21.92 24,032,050 566,999 3.20 - 22.41
products;
Social 378,553 0 0.00 6,275,397 0.31 2,222,984 18 0.00 17,727,686 2.07 - Expenses pertaining to Support Group and any other expenses, which are
Urban 96,102,052 22,802,165 96.95 - 77.77 80,996,926 17,165,474 96.80 - 75.52
not directly allocable, are apportioned on the basis of net written premium
in each business class; and
Total 123,568,546 23,519,863 100.00 100.00 107,251,960 17,732,491 100.00 100.00
In accordance with the IRDAI (Expenses of Management of Insurers transacting
5.1.7 Extent of risks retained and reinsured is set out below (excluding excess of General or Health Insurance Business) Regulations, 2016, operating expenses
loss and catastrophe reinsurance) in excess of segmental limits are to be borne by the shareholder’s. During the
Particulars Basis For the year ended For the year ended current financial year expenses of management for all segments are within the
March 31, 2018 March 31, 2017 prescribed segmental limits (previous year: 427,891 thousand was in excess for
the motor segment and was borne by the shareholders).
Retention Ceded Retention Ceded
Had the Company followed the earlier methodology, Operating expense of
Fire Total sum insured 21% 79% 22% 78%
` 885,300 thousand would have been in excess of segmental limits pertaining
Marine – Cargo Value at risk 70% 30% 68% 32% to Motor segment and same would have reduced proportionately from each
Marine – Hull Value at risk 7% 93% 9% 91% expenditure head and borne by shareholders.
Miscellaneous
5.1.10 Employee Benefit Plans
- Engineering Total sum insured 34% 66% 31% 69%
(A) Defined contribution plan
- Motor Total sum insured 89% 11% 83% 17%
(` in 000’s)
- Workmen Value at risk 90% 10% 95% 5%
Compensation Expenses on defined contribution plan For the year For the year
ended March ended March
- Public Liability Value at risk 55% 45% 65% 35%
31, 2018 31, 2017
- Personal Value at risk 72% 28% 76% 24%
Accident Contribution to staff provident fund 168,203 155,493
- Aviation Value at risk 40% 60% 55% 45% (B) Defined benefit plan
- Health Value at risk 67% 33% 70% 30% Gratuity
- Credit Insurance Value at risk 8% 92% 7% 93% The Company has a defined gratuity benefit plan payable to every employee
on separation from employment. The Company makes the contribution to an
- Crop / Weather Value at risk 27% 73% 26% 74% approved gratuity fund which is maintained and managed by ICICI Prudential
Insurance Life Insurance Company Limited.
- Others Value at risk 70% 30% 70% 30% Reconciliation of opening and closing balance of the present value of the
5.1.8 (A) Investments defined benefit obligation for gratuity benefits of the Company is given below:
Value of contracts in relation to investments for:
(` in 000’s)
- Purchases where deliveries are pending ` NIL(previous year: ` NIL); and
Reconciliation of Benefit Obligations and Plan For the year For the year
- Sales where payments are overdue ` NIL (previous year: ` NIL). Assets ended March ended March
Historical cost of investments that are valued on fair value basis is ` 25,063,263 31, 2018 31, 2017
thousand (previous year: ` 24,860,129 thousand). Change in Defined Benefit Obligation
All investments are made in accordance with Insurance Act, 1938 and Insurance Opening Defined Benefit Obligation 540,390 417,465
Regulatory and Development Authority of India (Investment) Regulations, 2016 Current Service Cost 71,775 62,550
and are performing investments.
Interest Cost 39,110 33,910
(B) Allocation of investment income Actuarial Losses / (Gain) 10,310 66,131
Investment income which is directly identifiable is allocated on actuals to
Liabilities assumed on Acquisition - -
revenue account(s) and profit and loss account as applicable. Investment
income which is not directly identifiable has been allocated on the basis of Benefits Paid (54,003) (39,666)
the ratio of average policyholder’s investments to average shareholder’s Closing Defined Benefit Obligation 607,582 540,390
investments, average being the balance at the beginning of the year and at the Change in the Fair Value of Assets
end of the reporting year.
Opening Fair Value of Plan Assets 542,670 421,344
Further, investment income across segments within the revenue account(s) has
Expected Return on Plan Assets 39,923 31,470
also been allocated on the basis of segment-wise policyholders funds.
Actuarial Gains / (Losses) (5,063) 18,732
5.1.9 Allocation of expenses Contributions by Employer - 110,790
During the year, the Company has reviewed and revised its Board approved
methodology on the allocation and apportionment of expenses as required Assets acquired on acquisition - -
by IRDAI (Expenses of Management of Insurers transacting General or Health Benefits paid (54,003) (39,666)
Insurance business) Regulations, 2016 as set out below: Closing Fair Value of Plan Assets 523,527 542,670
Allocation / apportionment of Operating Expenses is based on the Organisational Expected Employer’s contribution Next Year 70,000 70,000
Structure of the Company comprising off Business, Service and Support Groups.
Business comprises of Wholesale Business Group, Retail Business Group
(including Sub Groups) and Government Business Group. Expenses incurred
by Business Group are direct in nature. Service Group comprises of Customer
Service Group which consists of Underwriting and Claims Group, created based

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 schedules
forming part of the financial statements Continued

(` in 000’s) 5.1.11 Remuneration to Managerial and Key Management Persons

Reconciliation of Present Value of the At At (A) The details of remuneration of MD & CEO and two Wholetime Directors’ as
obligation and the Fair Value of the Plan March 31, March 31, per the terms of appointment are as under:
Assets 2018 2017
(` in 000’s)
Fair Value of Plan Assets at the end of the year (523,527) (542,670)
Particulars (see note below) For the year For the year
Present Value of the defined obligations at the 607,582 540,390
ended March ended March
end of the year
31, 2018 31, 2017
Liability recognised in the balance sheet (84,055) -
Salaries and allowances 109,520 117,541
Asset recognised in the balance sheet - 2,280
Contribution to provident and other funds 4,856 4,279
Investment details of plan assets
100% Insurer Managed Funds 523,527 542,670 Perquisites 1,559 790
Assumptions Managerial remuneration in excess of ` 15,000 thousand, for each
Discount Rate 7.45% p.a. 6.90% p.a. Managerial personnel has been charged to profit and loss account.
Expected Rate of Return on Plan Assets 7.50% p.a. 7.50% p.a. (B) The details of remuneration of Key Management Persons as per guidelines
Salary Escalation Rate 9.00% p.a. 9.00% p.a. issued by IRDAI vide Ref. no. IRDA/F&A/GDL/CG/100/05/2016 dated May
18, 2016 and as per the terms of appointment of Company are as under:
(` in 000’s)
(` in 000’s)
Expenses to be recognised in statement of For the year For the year
Profit and Loss Account ended March ended March Particulars (see note below) For the year For the year
31, 2018 31, 2017 ended March ended March
Current Service Cost 71,775 62,550 31, 2018 31, 2017
Interest on Defined Benefit Obligation 39,110 33,910 Salaries and allowances 165,424 137,925
Expected return on Plan Assets (39,923) (31,470) Contribution to provident and other funds 5,301 4,535
Net Actuarial Losses / (Gains) recognised in year 15,373 47,399 Perquisites 1,372 -
Past Service Cost - - Note: Provision towards gratuity, leave accrued and Long Term Performance
Losses / (Gains) on "Curtailments & - - Pay are determined actuarially on an overall basis and accordingly have not
Settlements” been considered for the above disclosures.
Losses / (Gains) on "Acquisition/ Divestiture" - - 5.1.12 (A) Share Capital
Effect of limit in Para 59 (b) - - During the year the Company has allotted 2,797,618 equity shares (previous
Total included in Employee Benefit Expense 86,335 112,389 year: 3,612,240 equity shares) under ESOP raising ` 359,347 thousand (previous
year: ` 368,468 thousand).
Experience adjustments of five years is given below During the year the Company has not made any preferential allotment (previous
(` in 000’s) year ` NIL).
March March March March March (B) Share Application
31, 2018 31, 2017 31, 2016 31, 2015 31, 2014 At March 31, 2018 the Company had not received any share application money
Defined Benefit Obligation 607,582 540,390 417,465 384,444 307,903 (previous year: ` 12,755 thousand) against which shares are yet to be allotted.
Plan assets 523,527 542,670 421,344 382,942 293,845 5.1.13 Outsourcing, business development and marketing support expenses
Surplus / (Deficit) (84,055) 2,280 3,879 (1,502) (14,059) Expenses relating to outsourcing, business development and marketing support are:
Exp. Adj on Plan Liabilites 28,632 44,699 (32,494) 5,957 25,459
(` in 000’s)
Exp. Adj on Plan Assets (5,063) 18,732 (11,373) 26,894 14,860
Particulars For the year For the year
Accrued Leave ended March ended March
The Company has a scheme for accrual of leave for employees, the liability for 31, 2018 31, 2017
which is determined on the basis of Actuarial Valuation carried out at the year Outsourcing expenses 1,770,139 1,473,291
end. Assumptions stated above are applicable for accrued leaves also.
Business development
(` in 000’s) - Sales promotion 3,868,826 3,090,152
Particulars For the year For the year - Business support services 5,808,351 7,387,433
ended March ended March
Marketing support 1,763,337 1,124,452
31, 2018 31, 2017
Opening balance 105,028 81,818
Add: Provision made during the year (31,389) 23,210 5.1.1
4 Details of penal actions taken by various Govt. authorities during year
ended March 31, 2018:
Closing balance 73,639 105,028
(` in 000’s)
Sl Authority Non- Penalty Penalty Penalty
Long Term Performance Pay No. Compliance/ Awarded Paid Waived/
The Company has schemes for Long Term Performance incentive plan. The Violation Reduced
plan is a discretionary deferred compensation plan with a vesting period 1 Insurance Regulatory and - - - -
of three years. The Company has determined the liability on the basis of Development Authority (-) (-) (-) (-)
Actuarial valuation. 2 Service Tax Authorities - - - -
(-) (-) (-) (-)
(` in 000’s) 3 Income Tax Authorities - - - -
Particulars For the year For the year (-) (-) (-) (-)
ended March ended March 4 Any other Tax Authorities - - - -
31, 2018 31, 2017 (-) (-) (-) (-)
5 Enforcement Directorate/ - - - -
Opening balance 283,449 252,162 Adjudicating Authority/ Tribunal or
(-) (-) (-) (-)
Add: Provision made during the year (65,002) 31,287 any Authority under FEMA
6 Registrar of Companies/ NCLT/CLB/ - - - -
Closing balance 218,447 283,449
Department of Corporate Affairs or
Assumptions any Authority under Companies Act, (-) (-) (-) (-)
Discount Rate 6.75% p.a. 6.35% p.a. 1956

330
schedules
forming part of the financial statements Continued

(` in 000’s) 5.1.17 Employee Stock Option Scheme (ESOS)

Sl Authority Non- Penalty Penalty Penalty The Company instituted the ESOS Scheme pursuant to the resolutions passed
No. Compliance/ Awarded Paid Waived/ by our Board and Shareholders on April 26, 2005 and July 22, 2005, respectively.
Violation Reduced
The Company had granted Stock options to employees in compliance with the
7 Penalty awarded by any Court/ - - - - Securities and Exchange Board of India (Employee stock option scheme and
Tribunal for any matter including employee stock purchase scheme) guidelines, 1999. Pursuant to the ESOS
claim settlement but excluding (-) (-) (-) (-) Scheme, no eligible employee could, in aggregate be granted in a financial year,
compensation options greater than 0.1% of the issued equity share capital of the Company
8 Securities and Exchange Board of - - - - and the aggregate of options granted to the eligible employees under the
India (-) (-) (-) (-) ESOS Scheme was capped at 5% of the issued capital of our Company as on
9 Competition Commission of India - - - - the date of such grants. ESOS Scheme was further amended pursuant to the
(-) (-) (-) (-) resolutions passed by the Board and Shareholders on June 9, 2017 and July 10,
10 Any other Central/State/Local Govt / - - - - 2017, respectively, to approve the amendment in the ESOS Scheme for, inter
Statutory Authority (Tariff Advisory alia, aligning it with the Securities and Exchange Board of India (Share Based
(-) (-) (-) (-)
Committee) Employee Benefits) Regulations, 2014. Further, the exercise price was finalized
Figure in brackets pertain to year ended March 31, 2017 by the Board Nomination and Remuneration Committee in concurrence with the
5.1.15 Summary of Financial Statements for five years: Board based on an independent valuer’s report. No fresh grant has been made
under the ESOS after April 25, 2011.
(` in 000’s)
The salient features of the Scheme are stated below:
Particulars FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 Founder ESOPs:
Operating Result
Gross direct premium 123,568,546 107,251,960 80,907,071 66,777,956 68,561,645 Scheme
Net premium income # 78,447,557 65,947,994 54,348,919 44,276,854 44,979,957
Income from investments (net)@ 11,267,503 10,012,329 9,299,869 7,641,750 6,593,546 Date of grant April 26, 2005
Other income 278,607 446,568 400,599 227,116 195,955 No. of Options granted (in 000’s) 917
Total income 89,993,667 76,406,891 64,049,387 52,145,720 51,769,458
Commissions (net) (including
Grant Price ` 35
brokerage) (2,839,545) (4,341,303) (3,279,732) (3,738,213) (2,290,885) Graded Vesting Period
Operating expenses 21,118,673 19,820,372 17,112,042 13,870,587 12,145,729
1st Year 50% of option
Net incurred claims & other
outgoes 53,147,238 49,543,315 39,282,142 34,434,368 36,189,051 2nd Year 50% of option
Change in unexpired risk reserve 9,330,209 4,311,952 6,132,746 1,923,506 1,450,824 Maximum term of option granted Later of the thirteenth anniversary of
Operating Profit/(Loss) 9,237,092 7,072,555 4,802,189 5,655,472 4,274,739
the date of grant of options or fifth
Non - Operating Result
anniversary of the date of vesting
Total income under shareholder's
account(net of expenses) 2,725,239 2,028,459 2,274,739 1,251,749 927,634 Mode of settlement Equity
Profit/(Loss) before tax 11,962,331 9,101,014 7,076,928 6,907,221 5,202,373
Provision for tax 3,344,574 2,082,175 2,002,461 1,551,076 88,814 Performance ESOPs (2005, 2006 & 2007):
Profit/(Loss) after tax 8,617,757 7,018,839 5,074,467 5,356,145 5,113,559 Scheme
Miscellaneous
Policy holder's account: Date of grant 2005 April 26, 2005
Total funds 134,006,827 107,240,107 88,920,306 70,427,250 73,972,565 2006 April 24, 2006
Total investments
Not applicable as investments are not earmarked 2007 April 21, 2007
Yield on investments
Shareholder's account: No. of Options granted (in 000’s) 13,322
Total funds 45,411,629 37,252,943 31,756,464 28,233,291 23,810,921 Grant Price ` 35 – ` 60
Total investments
Not applicable as investments are not earmarked Graded Vesting Period
Yield on investments
Paid up equity capital 4,539,483 4,511,507 4,475,384 4,465,940 4,450,555 1st Year 20% of option
Net worth ** 45,411,629 37,252,943 31,756,464 28,233,291 23,810,921
2nd Year 20% of option
Total assets 162,853,555 233,508,755 156,758,044 136,563,891 135,448,793
Yield on total investments 3rd Year 30% of option
(annualised) 9% 10% 11% 10% 9%
4th Year 30% of option
Earnings per share (`) 19.01 15.66 11.35 12.03 11.50
Book value per share (`) 100.04 82.57 70.96 63.22 53.50 Maximum term of option granted Later of the thirteenth anniversary of
Total dividend (excluding dividend the date of grant of options or fifth
tax) 679,988 1,571,008 1,341,696 891,225 - anniversary of the date of vesting
Dividend per share (`) 1.50 3.50 3.00 2.00 -
Mode of settlement Equity
# Net of Reinsurance
@ Includes Profit Net of Losses on sale / redemption of in-vestments and at Performance ESOPs (2008):
gross Interest, Dividend & Rent Scheme
** Shareholders funds / Net worth= (Share capital + Reserve & Surplus) – Date of grant 2008 April 24, 2008
(Miscellaneous Expenditure + Debit balance in profit & loss account) No. of Options granted (in 000’s) 5,050
5.1.16 Ratio Analysis: Grant Price ` 200
(A) For ratios at March 31, 2018 refer Annexure 1a and 1b and for March 31, Graded Vesting Period
2017 refer Annexure 2a and 2b
1st Year 20% of option
(B) Solvency Margin
2nd Year 20% of option
(` in 000’s) 3rd Year 30% of option
Solvency Margin At At 4th Year 30% of option
March 31, March 31, Maximum term of option granted Later of the tenth anniversary of
2018 2017 the date of grant of options or fifth
Required solvency margin under IRDAI 21,907,300 18,102,500 anniversary of the date of vesting
Regulations (A) Mode of settlement Equity
Available solvency margin (B) 44,912,000 38,064,400
Solvency ratio actual (times) (B/A) 2.05 2.10
Solvency ratio prescribed by Regulation 1.50 1.50

331
 schedules
forming part of the financial statements Continued
Performance ESOPs (2009): (in 000’s)
Scheme Particulars Other than Wholetime
Date of grant 2009 July 21, 2009 Wholetime Directors’ Directors’
No. of Options granted (in 000’s) 1,249 At March At March At March At March
31, 2018 31, 2017 31, 2018 31, 2017
Grant Price ` 91
Less: Exercised during the year (1,909) (3,641) (755) (105)
Graded Vesting Period
Outstanding at the end of the
1 Year
st
0% of option
year 255 2,185 240 995
2nd Year 20% of option
Exercisable at the end of the
3 Year
rd
20% of option year 255 2,185 240 995
4th Year 30% of option
The weighted average remaining contractual life of options outstanding at the
5th Year 30% of option end of the period is as follows:
Maximum term of option granted Later of the tenth anniversary of
the date of grant of options or fifth (in 000’s)
anniversary of the date of vesting Exercise At March 31, 2018 At March 31, 2017
Mode of settlement Equity Price (in `) Option Weighted avg Option Weighted avg
Outstanding remaining Outstanding remaining
Performance ESOPs (2010):
(in 000’s) contractual life (in 000’s) contractual life
Scheme (in years) (in years)
Date of grant 2010 April 19, 2010 35 - - 8 1.1
No. of Options granted (in 000’s) 2,312 35 9 0.1 78 1.1
Grant Price ` 114 40 6 1.1 208 2.1
Graded Vesting Period 60 23 2.1 524 3.1
1st Year 20% of option
200 - - 1,100 1.1
2nd Year 20% of option
91 110 1.3 217 2.3
3rd Year 30% of option
114 260 2.1 742 3.1
4th Year 30% of option
109 87 3.1 303 4.1
Maximum term of option granted Later of the tenth anniversary of
the date of grant of options or fifth Total 495 2.0 3,180 2.3
anniversary of the date of vesting
5.2 Other disclosures
Mode of settlement Equity
5.2.1 Basis used by the Actuary for determining provision required for IBNR/IBNER
Performance ESOPs (2011): IBNR (including IBNER) liability for all lines of business, has been estimated by
Scheme the Appointed Actuary in compliance with the guidelines issued by IRDAI from
time to time and the applicable provisions of the Guidance Note 21 issued by
Date of grant 2011 April 25, 2011
the Institute of Actuaries of India.
No. of Options granted (in 000’s) 723
Pursuant to IRDAI regulation of Asset, Liabilities, and Solvency margin of
Grant Price ` 109 General Insurance Business Regulations 2016 (IRDAI/Reg/7/119/2016 dated
Graded Vesting Period April 7, 2016); claim reserves are determined as the aggregate amount of
1st Year 40% of option Outstanding Claim Reserve and Incurred but Not Reported (IBNR) claim reserve
for 28 stipulated lines of business.
2nd Year 60% of option
Pursuant to Actuarial Practice Standard (APS) 33 issued by Institute of Actuaries
Maximum term of option granted Later of the tenth anniversary of
of India (IAI) which is mandatory and effective from December 1, 2017, the peer
the date of grant of options or fifth
review of statutory valuation of liabilities for March 31, 2018 has been carried
anniversary of the date of vesting
out by an independent actuary.
Mode of settlement Equity
5.2.2 Provision for Free Look period
The estimated fair value is computed on the basis of binomial tree pricing model, The provision for Free Look period is duly certified by the Appointed Actuary.
of each stock option granted for Founder ESOPs and Performance ESOPs.
5.2.3 Contribution to Terrorism Pool
Nil options are vested during the year ended March 31, 2018 and ` 359,347 The Company in accordance with the requirements of IRDAI has participated
thousand was realised by exercise of options. During the year ended March 31, in contributing to the Terrorism Pool. This pool is managed by the General
2018 the Company has recognised a compensation cost of ` NIL (previous year: Insurance Corporation of India (‘GIC’). Amounts collected as terrorism premium
` NIL) as the intrinsic value of the options. Had the company followed fair value are ceded at 100% of the terrorism premium collected to the Terrorism Pool,
method for valuing its options, no additional cost would have been charged in subject to conditions and an overall limit of ` 20 billion.
Revenue and Profit and Loss account and hence no change in Profit after tax,
Basic EPS and Diluted EPS for year ended March 31, 2018 and previous year In accordance with the terms of the agreement, GIC retrocedes, to the
ended March 31, 2017. Company, terrorism premium to the extent of the Company’s share in the
risk, which is recorded as reinsurance accepted. Such reinsurance accepted is
The weighted average price of options exercised during the year ended March recorded based on intimation / confirmation received from GIC. Accordingly,
31, 2018 is ` 130.1 (previous year: ` 101.8). reinsurance accepted, on account of the terrorism pool has been recorded only
up to December 31, 2017 (previous year: December 31, 2016) as per the last
A summary of status of Company’s Employee Stock Option Scheme in terms confirmation received.
of option granted, forfeited and exercised by the employees and Wholetime
Directors is given below: 5.2.4 India Nuclear Insurance Pool
In view of the passage of the Civil Liability for Nuclear Damage Act, 2010, GIC Re
(in 000’s)
as Indian Reinsurer initiated the formation of the India Nuclear Insurance Pool
Particulars Other than Wholetime (INIP) along with other domestic non-life insurance companies by pooling the
Wholetime Directors’ Directors’ capacity to provide insurance covers for nuclear risks. INIP is an unregistered
At March At March At March At March reinsurance arrangement among its members i.e. capacity providers without
31, 2018 31, 2017 31, 2018 31, 2017 any legal entity. GIC Re and 11 other non-life insurance companies are Founder
Outstanding at the beginning Members with their collective capacity of ` 15,000,000 thousand. GIC Re is
of the year also appointed as the Pool Manager of the INIP. The business underwritten by
2,185 5,904 995 1,100 the INIP will be retroceded to all the Member Companies including GIC Re in
Add: Granted during the year - - - - proportion of their capacity collated. Out of the total capacity of ` 15,000,000
Less: Forfeited / lapsed during thousand of the INIP, the capacity provided by the Company is ` 1,000,000
the year (21) (78) - - thousand. The Company has not received any statement of accounts during the
year from INIP Administrator.
332
schedules
forming part of the financial statements Continued
5.2.5 Interest, Rent and Dividend income (` in 000’s)
Interest, Dividend & Rent income is net of interest expense of ` 1,755 thousand
(previous year: ` 24,262 thousand) on account of REPO transactions. Current Current
Liabilities Assets
5.2.6 Re-insurance inward Segment Year Claims Outstanding
The results of reinsurance inward are accounted as per last available statement Outstanding Premium
of accounts / confirmation from reinsurers.
Workmen Compensation FY 2017-18 664,505 -
5.2.7 Contribution to Solatium fund FY 2016-17 474,982 -
In accordance with the requirements of the IRDAI circular dated March 18,
2003 and based on recommendations made at General Insurance Council Public/Product Liability FY 2017-18 345,697 -
meeting held on February 4, 2005 and as per letter no. HO/MTD/Solatium FY 2016-17 192,936 -
Fund/2010/482 dated July 26, 2010 from The New India Assurance Co. Ltd.
Personal Accident FY 2017-18 3,486,562 4,262
(Scheme administrator), the Company has provided 0.1% of the total Motor TP
premium of the Company towards solatium fund. FY 2016-17 4,166,716 11,654
Aviation FY 2017-18 1,801,215 -
5.2.8 Environment Relief Fund
An amount of ` 1,265 thousand is outstanding (Previous year: ` 919 thousand) FY 2016-17 1,762,049 -
towards Environment Relief fund (ERF) under Public Liability policies. Health FY 2017-18 4,408,308 1,040,242
5.2.9 Leases FY 2016-17 4,810,557 1,609,810
In respect of premises taken on operating lease, the lease agreements are Credit Insurance FY 2017-18 511,089 -
generally mutually renewable / cancelable by the lessor / lessee.
FY 2016-17 584,407 -
Non Cancelable operating lease Crop / Weather Insurance FY 2017-18 45,150,762 18,155,389
The detail of future rentals payable are given below:
FY 2016-17 22,339,527 17,967,482
(` in 000’s) Others FY 2017-18 4,841,170 13,466
At March 31, At March 31, FY 2016-17 3,511,980 8,603
2018 2017
Total Amount FY 2017-18 159,160,313 19,329,728
a. not later than one year 1,302 1,452
FY 2016-17 118,050,618 19,802,638
b. later than one year and not later than five years 760542
c. later than five years - - Secondary reportable segments
There are no reportable geographical segments since the Company provides
An amount of ` 3,083 thousand (previous year: ` 2,588 thousand) towards said services only to customers in the Indian market or Indian interests abroad and
lease payments has been recognised in the statement of revenue account. does not distinguish any reportable regions within India.
5.2.10 Micro and Small scale business entities 5.2.12 Related party
There is no Micro, Small & Medium enterprise to which the Company owes dues,
which are outstanding for more than 45 days as at March 31, 2018 (previous Party where control exists

year: ` NIL). This information as required to be disclosed under Micro, Small ICICI Bank Limited (Holding Company)
and Medium Enterprises Development Act 2006, has been determined to the Other related parties with whom transactions have taken place during the year:
extent such parties have been identified on the basis of information available
with the Company. Fellow Subsidiaries / Associates / Other related entities:

5.2.11 Segmental reporting Name of related party Relationship

Primary reportable segments ICICI Home Finance Company Limited Fellow Subsidiary
The Company’s primary reportable segments are business segments, which ICICI Prudential Asset Management Company Limited Fellow Subsidiary
have been identified in accordance with AS 17 – Segment Reporting read ICICI Prudential Life Insurance Company Limited Fellow Subsidiary
with the Regulations. The income and expenses attributable to the business
segments are allocated as mentioned in paragraph 5.1.8 & 5.1.9 above. Segment ICICI Securities Limited Fellow Subsidiary
revenue & results have been disclosed in the Revenue accounts. ICICI Securities Primary Dealership Limited Fellow Subsidiary
During the financial year ended March 31, 2018, pursuant to the IRDAI (Expenses ICICI Strategic Investments Fund Fellow Subsidiary
of Management of Insurers transacting General or Health Insurance business)
ICICI Bank UK PLC Fellow Subsidiary
Regulations, 2016 the Company has reviewed and revised its policy of allocation
of expenses compared to that followed until the year ended March 31, 2017. ICICI Equity Fund Fellow Subsidiary
Consequently, the segmental results for the year ended March 31, 2017 and ICICI Venture Funds Management Company Limited Fellow Subsidiary
March 31, 2018 are not comparable.
FAL Corporation (Affiliate of Fairfax Financial Holdings Venturer in
Segmental Assets & Liabilities to the extent identifiable to business segment: Limited) Joint Venture
(Upto July 3, 2017)
(` in 000’s)
Key Management Personnel (KMP):
Current Current
Liabilities Assets Bhargav Dasgupta, Managing Director & CEO
Segment Year Claims Outstanding Alok Kumar Agarwal, Executive Director
Outstanding Premium
Sanjeev Mantri, Executive Director
Fire FY 2017-18 15,370,707 36,129
Relatives of KMP with whom transactions have taken place during the year:
FY 2016-17 9,744,568 47,297
Ranjana Dasgupta : Spouse of Bhargav Dasgupta
Engineering FY 2017-18 3,048,607 80,240
Brij Mohan Gupta: Brother of Alok Kumar Agarwal
FY 2016-17 3,823,094 157,763
Vibha Mantri : Spouse of Sanjeev Mantri
Marine Cargo FY 2017-18 2,225,987 -
Anoushka Mantri : Daughter of Sanjeev Mantri
FY 2016-17 2,932,304 -
Aditya Mantri : Son of Sanjeev Mantri
Marine Hull FY 2017-18 2,367,097 -
Nimisha Chandak : Sister of Sanjeev Mantri
FY 2016-17 2,094,647 -
Motor OD FY 2017-18 6,862,700 -
FY 2016-17 6,419,360 29
Motor TP FY 2017-18 68,075,907 -
FY 2016-17 55,193,491 -

333
 schedules
forming part of the financial statements Continued

Details of transaction with related parties for the year ended March 31, 2018 are given below:
(` in 000’s)

Particulars ICICI Bank Ltd ICICI Home ICICI ICICI ICICI Others FAL KMP & their
Finance Co Securities Prudential Life Securities Ltd Corporation relatives
Ltd Primary Insurance Co
Dealership Ltd Ltd
Holding Fellow Fellow Fellow Fellow Venturer in
Company Subsidiary Subsidiary Subsidiary Subsidiary Joint Venture
Premium income 1,699,440 9,113 4,332 215,943 89,112 66,771 - 279
(1,270,942) (10,303) (4,306) (153,150) (81,169) (50,792) (-) (250)
Income from interest & dividend - - - - - - - -
(16,559) (-) (-) (-) (-) (-) (-) (-)
Claim payments net of claims received 42,160 - 1,945 -4,236 30,043 11,806 - 87
(31,339) (424) (2,994) (-2,472) (25,907) (97) (-) (5)
Commission/ Brokerage payouts 1,109,676 24,679 - - 4,984 - - -
(882,177) (22,204) (-) (-) (5,936) (-) (-) (-)
Investment
- Purchases 1,217,983 - 1,321,400 3,978,445 - - - -
(24,719,367) (-) (1,622,929) (3,320,963) (-) (-) (-) (-)
- Sales 1,591,230 - 549,393 4,511,052 - - - -
(23,130,754) (-) (500,821) (5,711,461) (-) (-) (-) (-)
Premium Paid - - - 11,634 - - - -
(-) (-) (-) (8,997) (-) (-) (-) (-)
Issue of Debentures - - - - - - - -
(-) (-) (150,000) (-) (-) (-) (-) (-)
Issue of Share capital - - - - - - - 7,550
(-) (-) (-) (-) (-) (-) (-) (1,050)
Share premium on share issued - - - - - - - 80,775
(-) (-) (-) (-) (-) (-) (-) (2,850)
Interest on Debentures issued - - - - - - - -
(-) (-) (2,633) (-) (-) (-) (-) (-)
Establishment & other expenditure 288,010 -17,214 - -873 2,298 - - 115,934
(256,315) (-16,713) (-) (-2,612) (1,226) (-) (-) (122,610)
Arranger fees for Debenture issue - - - - - - - -
(-) (-) (14,550) (-) (-) (-) (-) (-)
IPO expenses recovered 193,615 - - - - - 332,140 -
(-) (-) (-) (-) (-) (-) (-) (-)
Dividend Paid 404,587 - - - - - 116,083 1,115
(999,618) (-) (-) (-) (-) (-) (541,721) (105)
Royalty expenses 52,641 - - - - - - -
(-) (-) (-) (-) (-) (-) (-) (-)
Figure in brackets pertain to year ended March 31, 2017

Balances with related parties at March 31, 2018, are given below:
(` in 000’s)
Particulars ICICI Bank ICICI Home ICICI Securities ICICI Prudential ICICI Securities Others FAL KMP & their
Ltd Finance Co Primary Life Insurance Ltd Corporation relatives
Ltd Dealership Ltd Co Ltd
Holding Fellow Fellow Fellow Fellow Venturer in
Company Subsidiary Subsidiary Subsidiary Subsidiary Joint Venture
Assets
Cash, Bank balances & Deposits -684,903 - - - - - - -
(-1,345,956) (-) (-) (-) (-) (-) (-) (-)
Other assets / receivables - - - - - - - -
(-) (-) (-) (-) (-) (-) (-) (-)
Liabilities
Capital 2,538,438 - - - - - 449,788 7,550
(2,856,053) (-) (-) (-) (-) (-) (1,547,775) (-)
Share premium 10,872,192 - - - - - 3,819,959 80,775
(10,872,192) (-) (-) (-) (-) (-) (3,819,959) (-)
Debentures - - - - - - - -
(-) (-) (-) (-) (-) (-) (-) (-)
Premium received in advance / Cash 296,267 153 5,085 11,826 760 44,396 - -
deposits (29,378) (3,792) (339) (102) (520) (3,810) (-) (-)
Others liabilities/ Payables 591,540 7,109 - 986 1,577 1,584 - -
(353,224) (-4,762) (171) (20,176) (6,775) (17,725) (-) (-)
Figure in brackets pertain to year ended March 31, 2017

334
schedules
forming part of the financial statements Continued
During the year, the Company completed the Initial Public Offering (IPO) by 5.2.15 Deferred taxes
way of an offer for sale of 86,247,187 equity shares of ` 10 each at a price of The major components of deferred tax are as under:
` 661 per equity share, by ICICI Bank Limited, the Promoter Selling
(` in 000’s)
Shareholder and FAL Corporation, the Investor Selling Shareholder
aggregating to ` 57,009,391 thousand. As the IPO was through an offer for Particulars Deferred tax asset Deferred tax asset at
at March 31, 2018 March 31, 2017
sale, the Company did not receive any proceeds from the offer.
Timing differences on account of:
5.2.13 Details of age-wise analysis of the unclaimed amount of the policyholders
Reserve for Unexpired Risks 1,376,111 336,896
(excluding Income from Investment) for the year ended March 31, 2018
(` in 000’s) Provision for escalation in lease rentals 40,452 32,655
Leaves accrued 25,733 36,350
Particulars Total Age-wise analysis
Amount
0-6 7-12 13–18 19–24 25–30 31–36 Beyond
Provision for doubtful debts 671,832 466,388
months months months months months months 36 Total 2,114,128 872,289
months
Net deferred tax asset / (liability) 2,114,128 872,289
Claims settled but - - - - - - - -
not paid to the (-) (-) (-) (-) (-) (-) (-) (-) Deferred tax expense / (income) recognised
policyholders/ insured’s in the Profit and Loss A/c (1,241,839) 469,625
due to any reasons
except under litigation 5.2.16 REPO / Reverse repo transactions
from the insured/
policyholders (` in 000’s)
Sum due to the insured/ - - - - - - - -
For the year ended March 31, 2018
policyholders on (-) (-) (-) (-) (-) (-) (-) (-)
maturity or otherwise Minimum Maximum Daily average Outstanding at
Any excess collection of 170,088 6,578 132 117 29 1,850 2,190 159,192 outstanding outstanding outstanding March 31, 2018
the premium/ tax or any (205,676) (1,951) (49) (2,108) (2,575) (1,706) (7,445) (189,842) during the year during the year during the year
other charges which
is refundable to the Securities sold under repo
policyholders either as (At cost)
terms of conditions of
the policy or as per law Government Securities 109,647 493,741 325,503 -
(57,023) (2,516,501) (1,211,707) (-)
or as may be directed
by the Authority but not
refunded so far
Corporate Debt - - - -
Securities (-) (-) (-) (-)
Cheques issued but 952,851 233,703 34,286 58,545 29,320 17,985 25,198 553,814
not encashed by the (1,043,870) (289,563) (50,676) (20,923) (28,031) (21,280) (23,374) (610,023) Securities purchased
policyholder/ insured
under reverse repo (At
Total 1,122,939 240,281 34,418 58,662 29,349 19,835 27,388 713,006 cost)
(1,249,546) (291,514) (50,725) (23,031) (30,606) (22,986) (30,819) (799,865)
Figure in brackets pertain to year ended March 31, 2017 Government Securities 545,948 4,330,498 2,019,287 -
(1,057,982) (1,057,982) (1,057,982) (-)
Movement in unclaimed amount of policy holders due
(` in 000’s) Corporate Debt - - - -
Securities (-) (-) (-) (-)
Particulars For the year For the year
ended March ended March Figure in brackets pertain to year ended March 31, 2017
31, 2018 31, 2017
7 During the year ended March 31, 2018 the Company has incurred
5.2.1
Opening Balance 1,330,280 1,231,496 expenditure towards CSR activities which are as below;
Add: Amount transferred to unclaimed amount (a) Gross amount required to be spent by the company during the year was `
during the year 809,505 842,766 148,824 thousand (previous year: ` 123,988 thousand).
Add: Cheques issued out of the unclaimed (b) 
Amount spent during the year is ` 149,645 thousand (previous year: `
amount but not encashed by the policyholders 8,910 7,621 125,164 thousand).
Add: Investment income 77,997 80,734
(` in 000’s)
Less: Amount paid during the year 812,422 832,337
In cash Yet to be paid Total
Less: Amount transferred to SCWF (net of claims in cash
paid in respect of amounts transferred) 153,329 - (i) Construction/acquisition of any asset - - -
Closing balance 1,260,941 1,330,280 (-) (-) (-)
5.2.14 Details of earning per share for the year ended March 31, 2018 (ii) On purposes other than (i) above 149,645 - 149,645
(125,164) (-) (125,164)
(a) Contribution to ICICI Foundation 111,600 111,600
(` in 000’s) projects (Skill development & -
(92,800) (92,800)
sustainable livelihoods; elementary (-)
Particulars At March At March education & healthcare)
31, 2018 31, 2017 (b) Ride to safety (helmet distribution to 25,173 - 25,173
children) (23,746) (-) (23,746)
Profit/(loss) available to equity shareholders ` 8,617,757 7,018,839
(c) Access to Healthcare: Sanitation and 1,133 - 1,133
Weighted average number of equity shares Healthcare (Preventive and Curative) (-) (-) (-)
Number of shares at the beginning of the year 451,151 447,538 (d) Eye check-up camps for under
privileged school children led by 11,739 - 11,739
Share issued during the year 2,797 3,613
employees (8,328) (-) (8,328)
Total number of equity share outstanding at the (e) Contribution to Disaster Relief fund - - -
end of the year 453,948 451,151 (290) (-) (290)
Weighted average number of equity shares Figure in brackets pertain to year ended March 31, 2017
outstanding during the year 453,361 448,245
Add : Effect of dilutive issues of options and
share application pending allotment 430 2,141
Diluted weighted average number of equity
shares outstanding during the year 453,791 450,386
Nominal value of equity shares ` 10 10
Basic earning per share ` 19.01 15.66
Diluted earning per share ` 18.99 15.58

335
 schedules
forming part of the financial statements Continued
5.2.18 Terms of Borrowings 5.2.22 (A) 
The Company periodically reviews all its long term contracts to
(A) Gist of the terms of issue are as follows: assess for any material foreseeable losses.  Based on such review,
the Company has made adequate provisions for these long term
Series 1/2016-2017 contracts in the books of account as required under any applicable law
Type, Nature and Seniority of Unsecured, subordinated, fully paid-up, / accounting standard.
Instrument listed, redeemable and non-convertible (B)  As at March 31, 2018, the Company did not have any outstanding long
debentures term derivative contracts (previous year: ` NIL).
Face Value (per security) ` 1,000,000
5.2.23 For the year ended March 31, 2018, the company is not required to
Issue Size ` 4,850,000 thousand transfer any amount into the Investor Education & Protection Fund (previous
year: ` NIL).
Issue Date / Date of Allotment July 28, 2016
Redemption Date July 28, 2026 5.2.24 Dividend
Interim dividend appropriation for the year ended March 31, 2018 amounted
Call option Date July 28, 2021
to ` 818,418 thousand (Previous year ` 1,890,828 thousand) including dividend
Coupon Rate 8.25% per annum distribution tax of ` 138,430 thousand (Previous year ` 319,820 thousand).
Credit Rating “AAA” by CRISIL and “AAA” by ICRA The Board of directors have also proposed a final dividend of ` 1,134,871
Listing Listed on WDM segment of NSE and BSE thousand (Previous year: ` NIL) subject to requisite approvals. Dividend
distribution tax on the same amounts to ` 233,276 thousand (Previous year:
Frequency of the Interest Payment Annual ` NIL).
(B) Maturity Pattern from the date of issue The Central Government in consultation with National Advisory Committee
(` in 000’s) on Accounting Standards has amended Companies (Accounting Standards)
Rules, 2006 (‘principal rules’), vide notification issued by Ministry of Corporate
Maturity buckets Borrowings Affairs dated March 30, 2016. The Companies (Accounting Standards) Rules,
1 to 5 years - 2016 is effective March 30, 2016. According to the amended rules, the above
mentioned proposed dividend and Dividend distribution tax is not recorded as
Above 5 years 4,850,000
a liability at March 31, 2018.
Total 4,850,000
5.2.25 Previous year figures have been regrouped, reclassified in the respective
(C) Debenture Redemption Reserve schedule and notes wherever necessary, to conform to current year
Pursuant to IRDAI circular no. IRDA/F&A/OFC/01/2014-15/115 dated August 4, classifications. The details of changes are as under:
2017, and as required by Companies (Share Capital and Debentures) Rules,
2014, Company has started creating Debenture Redemption Reserve (DRR) from Sr. Regrouped Regrouped to Period Amount Reason
July 1, 2017 on a straight-line basis over the balance tenure. The appropriation No. from (in `
for the period ended March 31, 2018 on this account is ` 103,929 thousand. 000’s)

5.2.19 Disclosures on other work given to auditors 1 Schedule 8A Schedule 12 March 1,284,521 As per IRDAI
Pursuant to Corporate Governance Guidelines issued by IRDAI on May 18, 2016, Investments - Advances and 2017 Master Circular on
the additional work entrusted to the statutory auditor is given below: Policyholders Other Assets – Unclaimed Amounts
(Short term Other Assets – of Policyholders Ver
(` In 000’s) Investments 01 dated July 25,
Assets held for 2017; investment of
Name of the Services rendered For the year For the year –(d) Other Unclaimed amount
Auditor ended March ended March Securities) Unclaimed Amount
of policyholders shall be shown under
31, 2018 31, 2017
the Schedule of
Chaturvedi & CoReport on restated financial 5,165 - Current Assets to the
PKF Sridhar & statements, the related 5,054 - Balance Sheet.
Santhanam LLP certificates and the comfort
letters in relation to the initial
For and on behalf of the Board
public offering of the Company’s
equity shares by certain selling
shareholders including related Chanda Kochhar N. S. Kannan
out-of-pocket expenses but
excluding applicable taxes. Chairperson Director
In accordance with SEBI rules, the remuneration disclosed above has been
reimbursed by the selling shareholders and hence does not reflect as charge in Ashvin Parekh Bhargav Dasgupta
Company’s Profit and Loss Account Director Managing Director & CEO
5.2.20 As at March 31, 2018 there are no (previous year: ` NIL) outstanding forward
exchange contracts. Alok Kumar Agarwal Sanjeev Mantri
5.2.21 The Company’s pending litigations comprise of claims against the Company Executive Director Executive Director
and proceedings pending with Tax Authorities.  The Company has reviewed
all its pending litigations and proceedings and has made adequate provisions,
wherever required and disclosed the contingent liabilities, wherever applicable, Vikas Mehra Gopal Balachandran
in its financial statements. The Company does not expect the outcome of these Company Secretary Chief Financial Officer
proceedings to have a material impact on its financial position.  (Refer Note no.
5.1.1 for details on contingent liabilities)
Mumbai
April 25, 2018

336
 Annexure-1a Analytical Ratios as at March 31, 2018

Sr. Particular Total Fire Marine Marine Marine Motor Motor Motor Workmen Public/Product Engineering Aviation PA Health Credit Crop/ Others Total Basis of calculations
No. Cargo Others total OD TP Total compensation Liability Weather miscellaneous
Insurance
1 Gross Direct Premium 15% 23% 8% 5% 7% 11% 23% 16% 14% 56% 10% 16% 27% 11% 31% 10% 32% 15% (GDPI current year- GDPI
Growth Rate previous year)/ GDPI
previous year
2 Gross Direct Premium to 2.72 GDPI/ Net worth
Net Worth Ratio
3 Growth rate of Net Worth 22% (Net worth current year-
Net worth previous year )
/ Net worth previous year
4 Net Retention Ratio 62% 16% 67% 4% 54% 85% 94% 89% 88% 38% 30% 30% 71% 67% 8% 23% 65% 67% NWP / (GDPI + RI
schedules

accepted)
5 Net Commission Ratio -4% -31% 12% 0% 12% 6% 0% 3% 9% 2% -5% 19% -13% -22% -72% -25% 9% -3% Net commission / NWP
6 Expense of Management 23% Expenses of management/
to Gross Direct Premium GDPI
Ratio
7 Expense of Management 36% Expenses of management/
to Net Written Premium NWP
Ratio
forming part of the financial statements

8 Net Incurred Claims to 77% Net Incurred Claims / Net

Net Earned Premium Earned Premium
9 Combined Ratio 100% ((Net Incurred Claims /
Net Earned Premium)
+ ((Net Commission +
Operating Expenses) /
NWP))
10 Technical Reserves to Net 2.59 (Reserve for Unexpired
Premium Ratio Risk + Reserve for
premium deficiency +
Reserve for outstanding
claims including IBNR and
IBNER)/ NWP
11 Underwriting balance 0.59 0.14 (0.05) (Underwriting profit/loss) /
Ratio (0.03) Net Earned Premium
12 Operating Profit Ratio 13% (Underwriting profit/loss
+ Investment income) /
Net Earned Premium
13 Liquid Assets to liabilities 10% Liquid Assets/
Ratio Policyholders liabilities
14 Net earnings Ratio 12% Profit after tax/ Net Earned
Premium
15 Return on Net Worth 19% Profit after tax/ Net Worth
Ratio
16 Available Solvency 2.05
margin Ratio to Required
Solvency Margin Ratio
(times)
17 NPA Ratio
Gross NPA Ratio -
Net NPA Ratio -
Notes : Annexure-1b - Equity Holding Pattern
Ratios are computed as per definitions laid down by IRDA Master circular dated October 5,
2012 and corrigendum on master circular dated July 3, 2013 1 (a) No. of shares 453,948,304
1. GDPI = Premium from direct business written, NWP = Net written premium 2 (b) Percentage of shareholding (Indian / Foreign) 72.8% / 27.2%
2. Shareholders’ funds/ Net worth = (Share capital + Reserve & Surplus) - (Miscellaneous
expenditure + Debit balance in profit & loss account) 3 (c) %of Government holding (in case of public sector -
insurance companies)
3. Expenses of management = Commission paid-direct + Operation expenses related to
insurance business 4 (a) Basic and diluted EPS before extraordinary items ` 19.01 and ` 18.99
4. Liquid asset= Short term investments + Cash and bank balances (net of tax expense) for the year
5. 
Policyholders liabilities = Claim outstanding (to be discharged in 12 months) + 5 (b) Basic and diluted EPS after extraordinary items ` 19.01 and ` 18.99
Reserve for unexpired risk + Reserve for premium deficiency (net of tax expense) for the year
Continued

337
6. 
Underwriting profit/ (loss) = Net premium earned - Net claims incurred - Net
commission - Operating expense 6 (iv) Book value per share (`) 100.04
 Annexure-2a Analytical Ratios as at March 31, 2017

338
Sr. Particular Total Fire Marine Marine Marine Motor Motor Motor Workmen Public/Product Engineering Aviation PA Health Credit Crop/ Others Total Basis of calculations
No. Cargo Others total OD TP Total compensation Liability Weather miscellaneous
Insurance
1 Gross Direct Premium 33% 18% 16% 7% 14% 9% 10% 9% 15% 69% 13% 12% 28% 20% 3% 263% 29% 35% (GDPI current year- GDPI
Growth Rate previous year)/ GDPI
previous year
2 Gross Direct Premium to 2.88 GDPI/ Net worth
Net Worth Ratio
3 Growth rate of Net Worth 17% (Net worth current year-
Net worth previous year ) /
Net worth previous year
4 Net Retention Ratio 60% 17% 64% 7% 52% 75% 94% 83% 94% 44% 27% 44% 75% 70% 7% 23% 64% 64% NWP / (GDPI + RI
accepted)
5 Net Commission Ratio -7% -35% 10% -3% 10% 0% 0% 0% 9% 10% -23% 18% -9% -20% -102% -30% 8% -6% Net commission / NWP
6 Expense of Management 23% Expenses of management/
to Gross Direct Premium GDPI
Ratio
7 Expense of Management 37% Expenses of management/
to Net Written Premium NWP
Ratio
8 Net Incurred Claims to 80% Net Incurred Claims / Net
Net Earned Premium Earned Premium
9 Combined Ratio 104% ((Net Incurred Claims / Net
Earned Premium) + ((Net
Commission + Operating
schedules

10 Technical Reserves to Net 2.32
Premium Ratio
11 Underwriting balance
Expenses) /NWP))
(Reserve for Unexpired Risk
+ Reserve for premium
deficiency + Reserve
for outstanding claims
including IBNR and IBNER)/
NWP
0.43 (0.17) (0.06) (Underwriting profit/loss) /
forming part of the financial statements

Ratio (0.05) Net Earned Premium

12 Operating Profit Ratio 11% (Underwriting profit/loss +
Investment income) / Net
Earned Premium
13 Liquid Assets to liabilities 14% Liquid Assets/ Policyholders
Ratio liabilities
14 Net earnings Ratio 11% Profit after tax/ Net Earned
Premium
15 Return on Net Worth 19% Profit after tax/ Net Worth
Ratio
16 Available Solvency margin 2.10
Ratio to Required Solvency
Margin Ratio (times)
17 NPA Ratio
Gross NPA Ratio -
Net NPA Ratio -
Notes : Annexure-2b - Equity Holding Pattern
Ratios are computed as per definitions laid down by IRDA Master circular dated October 5,
2012 and corrigendum on master circular dated July 3, 2013 1 (a) No. of shares 451,150,686
1. GDPI = Premium from direct business written, NWP = Net written premium 2 (b) Percentage of shareholding (Indian / Foreign) 65.7%/ 34.3%
2. Shareholders’ funds/ Net worth = (Share capital + Reserve & Surplus) -
(Miscellaneous expenditure - Debit balance in profit & loss account) 3 (c) %of Government holding (in case of public sector -
3. Expenses of management = Commission paid-direct + Operation expenses related insurance companies)
to insurance business 4 (a) Basic and diluted EPS before extraordinary items ` 15.66 and ` 15.58
4. Liquid asset= Short term investments + Cash and bank balances (net of tax expense) for the year
5. Policyholders liabilities = Claims outstanding (to be discharged in 12 months) +
Reserve for unexpired risk + Reserve for premium deficiency 5 (b) Basic and diluted EPS after extraordinary items ` 15.66 and ` 15.58
6. Underwriting profit/ (loss) = Net premium earned - Net claims incurred - Net (net of tax expense) for the year
commission - Operating expense 6 (iv) Book value per share (`) 82.57
Continued
receipts & payment account (direct basis)
for the year ended March 31, 2018

(` in 000’s)
Particulars March 31, March 31,
2018 2017
A CASH FLOW FROM OPERATING ACTIVITIES
1 - Premium received from policyholders, including advance receipt 131,180,312 103,976,106
2 - Other receipts (including-environment relief fund & Motor TP pool and Terrorism Pool)" 374,397 536,839
3 - Receipt / (payment) from/to re-insurer net of commissions & claims recovery" (13,210,925) (5,645,382)
4 - Receipt / (payment) from / to co-insurer net of claims recovery 2,942,444 2,940,420
5 - Payments of claims (net of salvage) (54,505,848) (49,937,862)
6 - Payments of commission and brokerage (6,941,674) (5,200,964)
7 - Payments of other operating expenses*2 (22,669,799) (20,925,615)
8 - Preliminary and preoperative expenses - -
9 - Deposits, advances & staff loans (net) (423,035) (167,646)
10 - Income tax paid (net) (3,219,438) (1,968,829)
11 - Service taxes & Goods and service tax paid (9,628,051) (7,329,184)
12 - Cash flows before extraordinary items 23,898,383 16,277,883
13 - Cash flows from extraordinary operations - -
14 Net cash from operating activities 23,898,383 16,277,883
B CASH FLOW FROM INVESTING ACTIVITIES
1 - Purchase of fixed assets (including capital advances) (750,290) (538,300)
2 - Proceeds from sale of fixed assets 3,522 (746,768) 3,586 (534,714)
3 - Purchase of investments (120,236,708) (138,142,997)
4 - Loans disbursed - -
5 - Sale of investments 86,694,401 116,769,117
6 - Repayments received - -
7 - Rent/interest/dividends received 9,278,410 7,793,364
8 - Investments in money mkt instruments and liquid mutual fund (net) 6,072,145 (5,761,179)
9 - Other payments ( Interest on IMTPIP ) - -
10 - Other payments ( Advance payment for purchase of real estate) - -
11 - Expenses related to investments (18,377) (22,536)
12 - Other ( Deposit received on leasing of premises ) - (18,210,129) - (19,364,231)
13 Net cash from investing activities (18,956,897) (19,898,945)
C CASH FLOW FROM FINANCING ACTIVITIES
1 - Proceeds from issuance of share capital / application money 346,592 381,224
(including share premium & net of share issue expenses)
2 - Proceeds from borrowing - 4,850,000
3 - Repayments of borrowing - -
4 - Brokerage and other expenses on borrowings - (21,326)
5 - Interest / Dividends paid (1,310,267) (1,596,512)
6 Net cash from financing activities (963,675) 3,613,386
D Effect of foreign exchange rates on cash and cash equivalents, net - -
E Net increase/(decrease) in cash and cash equivalents 3,977,811 (7,676)
1 Cash and cash equivalents at the beginning of the year 1,940,353 1,948,029
2 Cash and cash equivalents at end of the period*1 5,918,164 1,940,353
*1 Cash and cash equivalent at the end of the period includes short term deposits of ` 3,044,078 thousand (previous period: ` 322,769 thousand)balances with banks in current
accounts ` 2,561,306 thousand (previous period: ` 1,233,553 thousand) and cash including cheques and stamps in hand amounting to ` 312,780 thousand (previous period:
` 384,031 thousand)
*2 Includes payments towards Corporate Social Responsibility of ` 149,645 thousand (previous period: ` 125,164 thousand)

As per our attached report of even date For and on behalf of the Board

For Chaturvedi & Co. For PKF Sridhar & Santhanam LLP Chanda Kochhar N. S. Kannan
Chartered Accountants Chartered Accountants Chairperson Director
Firm Regn No.: 302137E Firm Regn No.: 003990S/S200018

SN Chaturvedi R. Suriyanarayanan Ashvin Parekh Bhargav Dasgupta

Partner Partner Director Managing Director & CEO
Membership No.: 040479 Membership No: 201402
Alok Kumar Agarwal Sanjeev Mantri
Executive Director Executive Director

Vikas Mehra Gopal Balachandran

Mumbai, April 25, 2018 Company Secretary Chief Financial Officer

339
 ICICI HOME FINANCE COMPANY LIMITED
19TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Chief Financial Officer Registered & Corporate Office
Anup Bagchi, Chairman Vikrant Gandhi ICICI Bank Towers,
Anita Pai Bandra-Kurla Complex,
N. R. Narayanan Company Secretary Bandra (East),
Dileep C. Choksi Pratap Salian Mumbai - 400051
Subramaniam Santhanakrishnan
Sankaran Santhanakrishnan Auditors Corporate Office
Anirudh Kamani, Managing Director & CEO B S R & Co. LLP RPG Tower, Andheri - Kurla Road, J. B. Nagar,
Chartered Accountants Andheri (East), Mumbai - 400059

directors’ report
to the members

On behalf of the Board of Directors, it is our pleasure to present the 19th Annual
Report along with the Audited Financial Statement of Accounts for the year ended
March 31, 2018.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2018 is summarised in the following table:
(` million)
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL
POSITION OF THE COMPANY
There are no material changes and commitments affecting the financial position of
the Company from the end of the fiscal 2018 and the date of the report.
DISCLOSURES AS PER THE HOUSING FINANCE COMPANIES (NHB) DIRECTIONS,
2010 (AS AMENDED FROM TIME TO TIME)

Fiscal 2017 Fiscal 2018 % change PUBLIC DEPOSITS

Net interest income and other income 3,625.9 2,922.3 (19)% As required by National Housing Bank, the details of public deposits unclaimed at
Operating expenses 880.3 936.7 6% March 31, 2018, are given below:
Provisions and contingencies (37.1) 936.2 -
Profit before tax 2,782.7 1,119.4 (60)% i. The total number of accounts of public deposit which have not been claimed by
Profit after tax 1,832.6 642.5 (65)% the depositors after the date on which the deposit became due for re-payment:
1,367
The profit before tax for the year ended March 31, 2018 is ` 1,119.4 million (previous
year ` 2,782.7 million) after general provision on standard assets and provision, ii. 
The total amounts due (including interest) under such accounts remaining
write-off of non-performing assets of ` 936.2 million (previous year provision unclaimed beyond the dates referred to in clause (i) as aforesaid: ` 139.5 million
reversal of ` 37.1 million) and operating expenses of ` 936.7 million (previous year The total amount of interest due on such unclaimed or unpaid deposits amounted to
` 880.3 million). ` 18.4 million at March 31, 2018.
The profit after tax for the year ended March 31, 2018 is ` 642.5 million (previous year The Company has sent reminders to the depositors and requested them to claim the
` 1,832.6 million). The profit available for appropriation is ` 856.1 million (previous same. There are no overdue deposits other than unclaimed deposits.
year ` 1,863.3 million). Appropriations from current year profit are summarised below.
In addition, the Company has raised deposits worth ` 504.7 million during fiscal
(` in million) 2018. The Company’s Fixed Deposits programme has received the highest credit
Fiscal 2017 Fiscal 2018 ratings of ‘MAAA’ by ICRA and ‘CARE AAA (FD)’ by CARE.
Special Reserve created and maintained in terms of Section
29 C of National Housing Bank Act, 1987 367.0 206.0 DISCLOSURE UNDER HOUSING FINANCE COMPANIES ISSUANCE OF
Dividend NON-CONVERTIBLE DEBENTURES ON PRIVATE PLACEMENT BASIS (NHB)
Equity Shares (Dividend including tax) 1,287.7 595.8 DIRECTIONS, 2014
Proposed final dividend on equity share capital: Nil i. The total number of non-convertible debentures which have not been claimed
(previous year Nil) including tax - - by the investors or not paid by the Company after the date on which the non-
Balance carried forward to next year 213.6 54.3 convertible debentures became due for redemption: Nil
DIVIDENDS ii. The total amount in respect of such debentures remaining unclaimed or unpaid
The Company paid interim dividend of 3.15% (excluding dividend distribution tax) beyond the date of such debentures become due for redemption: Nil
amounting to ` 345.6 million on paid up share capital of ` 10,987.5 million in fiscal
2018 (fiscal 2017: 9.70%; ` 1,065.8 million). Further, the Company has not declared TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND
any final dividend for fiscal 2018 (fiscal 2017: 1.36%; ` 149.4 million). Pursuant to the provisions of the Companies Act, 2013, the Company has already
filed the necessary form and uploaded the details of unpaid and unclaimed amounts
OPERATIONAL REVIEW lying with the Company, as on the date of last AGM (i.e. May 26, 2017) with the
We have consciously been slow in new acquisitions on the Corporate Realty Finance Ministry of Corporate Affairs.
(CRF) portfolio given the market trends in the segment. Supported by organic
The matured deposits with the Company which were unclaimed for more than 7
growth in retail mortgages business, the total loan assets of the Company grew to
years from the date of maturity of ` 12.0 million for fiscal 2018 have been transferred
` 96,459.1 million at March 31, 2018. The Company continues to stay committed and
focused on partnering the developers and end consumers at all stages of the real to IEPF as required by the Companies Act, 2013.
estate value chain.
DETAILS OF DEBENTURE TRUSTEES
INTERNAL CONTROL AND ITS ADEQUACY As per SEBI circular no. CIR/IMD/DF/18/2013 dated October 29, 2013 and SEBI
The Company has adequate internal controls and processes in place with respect to (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of
its financial statements, which provide reasonable assurance regarding the reliability Debenture Trustees are as under:
of financial reporting and the preparation of financial statements. These controls and
processes are driven through various policies, procedures and certifications. The 1. Name: IDBI Trusteeship Services Limited
processes and controls are reviewed periodically. The Company has a mechanism of Address and contact details: Asian Building, Ground Floor, 17, R, Kamani Marg,
testing the controls at regular intervals for their design and operating effectiveness to Ballard Estate, Mumbai - 400001. Tel No. 022-40807008
ascertain the reliability and authenticity of financial information. 2. Name: Axis Trustee Services Limited
PERSONNEL Address and contact details: Axis House, Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg, Worli, Mumbai - 400025.
All the employees of the Company are on deputation from ICICI Bank. The Company
has 332 employees at March 31, 2018. Tel. No.: 022-62260054 Fax No.: 022-43253000
The statement containing particulars of employees as required under Section 197(12)
of the Companies Act, 2013 read with rule 5(2) of the Companies (Appointment and ANNUAL RETURN
Remuneration of Managerial Personnel) Rules, 2014 is given in Annexure 5 and An extract of the annual return as required under Section 92 (3) of the Companies
Annexure 5A. Act, 2013 in Form No. MGT-9 is attached as Annexure 1.

340
directors’ report
RELATED PARTY TRANSACTIONS 1. N. R. Narayanan was appointed as Chairman of the Committee effective
The particulars of contracts or arrangement with related parties pursuant to Section July 19, 2017.
188 (1) of the Companies Act, 2013 along with the justification for entering into the
contracts or arrangements is given in Annexure 2. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Pursuant to Section 149 and other applicable provisions of the Companies
DETAILS OF BOARD MEETINGS Act, 2013 and Rules thereunder, S. Santhanakrishnan, Dileep Choksi and
During the year, five Board meetings were held and attendance details of Board CA S. Santhanakrishnan have been appointed as independent directors for a period
members is given below. of 5 years. They will hold office as an independent directors of the Company up to
March 31, 2019, March 31, 2019 and October 15, 2019 respectively.
Number of Board Number of Board
Meetings Held Meetings Attended Pursuant to the powers conferred under article 129 of the Articles of Association
Anup Bagchi 5 5 of Company, ICICI Bank Ltd. through its letter dated July 7, 2017 had withdrawn
Anup Kumar Saha1 5 1 the nomination of Anup Kumar Saha as a Director and nominated N. R. Narayanan
Rohit Salhotra2 5 4 through its letter dated July 13, 2017. Accordingly, the Board approved the
S. Santhanakrishnan 5 5 cessation of Anup Kumar Saha as Director of the Company effective July 7, 2017
Dileep Choksi 5 5 and appointed N. R. Narayanan as an Additional Director of the Company effective
CA S. Santhanakrishnan 5 43 July 13, 2017. Further, ICICI Bank Ltd. through its letter dated October 24, 2017 had
Anita Pai 5 5 withdrawn the nomination of Rohit Salhotra as a Director and Managing Director &
N. R. Narayanan4 5 4 CEO effective close of business hours on October 31, 2017 and deputed Anirudh
Anirudh Kamani5 5 1 Kamani, Senior General Manager of the Bank to the Company and nominated him
The Board has appointed N. R. Narayanan as an additional director of the Company as a Director and Managing Director & CEO of the Company effective November 1,
effective July 13, 2017 and Anirudh Kamani as an additional director and Managing 2017. Accordingly, the Board approved the cessation of Rohit Salhotra as Director
Director & CEO of the Company effective November 1, 2017. and Managing Director & CEO effective close of business hours on October 31, 2017
and appointed Anirudh Kamani as an Additional Director and Managing Director &
S. Santhanakrishnan, Dileep Choksi and CA S. Santhanakrishnan are independent
CEO of the Company effective November 1, 2017. N. R. Narayanan and Anirudh
Directors on the Board of the Company. In the opinion of the Board and as
Kamani will hold office of director up to the ensuing AGM and are eligible to offer
confirmed by these Directors, they fulfil the conditions specified in section 149
themselves for re-appointment as directors of the Company.
of the Companies Act, 2013 and the Rules made thereunder about their status as
independent directors. Independent directors are not liable to retire by rotation The Company has received notice as required under Section 160 of the Companies
and terms of appointment of independent directors will be governed by the Act, 2013 from a member, signifying his intention to propose the candidature of N.
provisions of the Companies Act, 2013. R. Narayanan and Anirudh Kamani for their appointment as directors on the Board at
the ensuing AGM of the Company.
1. Anup Kumar Saha ceased to be Director w.e.f. July 7, 2017.
2. Rohit Salhotra ceased to be Director and Managing Director & CEO w.e.f. Pursuant to the provisions of Section 152 of the Companies Act, 2013, Anita Pai,
October 31, 2017. Director retire by rotation at the forthcoming Annual General Meeting and being
3. CA S. Santhanakrishnan has attended four out of five Board meetings during the eligible, offer herself for reappointment.
year held on April 18, 2017, September 26, 2017, October 25, 2017 and January Pursuant to the provisions of Section 203 of the Companies Act, 2013 Anirudh
18, 2018 and the Board meeting held on July 19, 2017 was attended by him Kamani (Managing Director & Chief Executive Officer), Vikrant Gandhi (Chief Financial
through Teleconference. Officer)1 and Pratap Salian (Company Secretary) are Key Managerial Personnel of the
4. N. R. Narayanan was appointed as an additional Director w.e.f. July 13, 2017. Company.
5. Anirudh Kamani was appointed as an additional Director and Managing Director
1. The Board of Directors appointed Vikrant Gandhi as Chief Financial Officer of the
& CEO w.e.f. November 1, 2017.
Company effective February 5, 2018.
COMMITTEES OF BOARD
APPOINTMENT AND REMUNERATION POLICY FOR DIRECTORS, KEY
The details of composition of the Committees of the Board of Directors and meetings MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
held are given below.
The Board at its meeting held on March 31, 2015 adopted criteria for appointment
a. Audit and Risk Management Committee (ARMC) of directors. The Board while appointing a director considers the areas of expertise
as required to be possessed by a director under the Companies Act, 2013 and the
Sl.No. Name Chairman/ Members due diligence checks to confirm the fit and proper status. The fundamental core
1 Dileep Choksi Chairman attributes which may be considered for the position of an executive director would
2 S. Santhanakrishnan Member be proven leadership capability, ability to successfully manage diverse stakeholder
3 Anup Bagchi Member relationships and ability to devise and drive the business strategy of the Company
During the year, four meetings of the Committee were held on April 18, 2017, with focus on productivity and risk management.
July 19, 2017, October 25, 2017 and January 18, 2018. The Company while appointing senior management candidates consider proven
skills, performance track record, relevant competencies, maturity and experience in
b. Nomination & Remuneration Committee handling core functions relevant to the role.
Sl.No. Name Chairman/ Members The wholetime directors should have sufficient tenure to enable them to deliver on
1 Dileep Choksi Chairman the Company’s long term business strategy.
2 S. Santhanakrishnan Member
3 Anup Bagchi Member Remuneration for the non-executive/independent directors includes fees for
attending each meeting of Committee/Board or for any other purpose whatsoever as
During the year, three meetings of the Committee were held on April 18, 2017, may be approved by the Board from time to time within the limits as provided under
October 25, 2017 and January 18, 2018. Companies Act, 2013.
c. Corporate Social Responsibility Committee Additionally, the independent directors of the Company are paid a profit related
commission of ` 750,000 each per annum effective fiscal 2016. The payment would
Sl.No. Name Chairman/ Members be subject to the provisions of the Companies Act, 2013 and availability of net profits
1 Anita Pai Chairperson at the end of each fiscal.
2 Dileep Choksi Member
3 S. Santhanakrishnan Member The non-executive/independent director would be entitled to reimbursement of
4 CA S. Santhanakrishnan Member expenses for attending Board/Committee meetings, official visits and participation
in various forums on behalf of the Company and any other expenses as may be
During the year, two meetings of the Committee were held on April 18, 2017 and approved by the Board.
July 19, 2017.
The Company is a 100% subsidiary of ICICI Bank. Currently, all employees of the
d. Stakeholders Relationship Committee Company are on deputation from ICICI Bank and the compensation policy of the
Bank to the extent applicable would be applicable to the Company.
Sl.No. Name Chairman/ Members
1 N R Narayanan1 Chairman BOARD EVALUATION
2 CA S. Santhanakrishnan Member
The Company has adopted a framework for annual evaluation of the Board, Individual
3 Managing Director & CEO Member
directors and Board Level Committees as per the provisions of the Companies
No Committee meeting held during fiscal 2018, as there were no complaints Act, 2013. In terms of the framework adopted by the Company, the independent
or pending grievances from the institutional lenders & bond holders of the directors evaluate performances of the Board as a whole, non-independent directors
Company. and Board Level Committees of the Company. The Board members evaluate the

341
directors’ report
performances of the independent directors. The separate meeting of independent
directors without the attendance of non-independent directors and the management
team was held during the year as per the provisions of Schedule IV of the Companies
Act, 2013.
VIGIL MECHANISM
The Company has put in place a Whistleblower Policy which aims to set up a
mechanism that enables employees to report about potentially illegal and/or
unacceptable practices. It seeks to enable employees to report such practices without
fear of victimisation and reprisal. The Whistleblower Policy aims to administer good
governance practices in the Company and to ensure that serious concerns are
properly raised and addressed.
The purpose of the Whistleblower Policy is to enable a person who observes an
unethical practice (whether or not a violation of law) to approach the management
including Chairperson of the ARMC without necessarily informing his supervisors
and without revealing his identity, if he chooses to do so. The Whistleblower Policy
governs reporting and investigation of allegations of suspected improper activities.
Employees of the Company are encouraged to use guidance provided in the
Whistleblower Policy for reporting all alleged or suspected improper activities. In all
instances, the Company retains the right to determine when circumstances warrant
an investigation and in conformity with the Whistleblower Policy and applicable laws
and regulations, the appropriate investigative process is employed.
INFORMATION REQUIRED UNDER THE SEXUAL HARASSMENT OF WOMAN AT
WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
There were no complaints reported during the year under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company has partnered ICICI Foundation for Inclusive Growth to support the
cause of elementary education, primary health, sustainable livelihood and skill
development. The Company has a CSR policy approved by the Board and the CSR
budget and activities are overseen by the CSR Committee.
Detailed report on CSR activities/initiatives is enclosed as Annexure 3.
RISK MANAGEMENT FRAMEWORK
The Company is exposed to various kinds of risks like credit risk, market risk,
liquidity risk and operational risk arising out of business operations which include
mortgage lending, liability management etc. In order to mitigate these risks a broad
risk management framework approved by the Board and under the supervision of
ARMC of the Company is in place, with an objective to ensure that the Company
has in place policies and procedures to manage these. The Company laid down
appropriate systems to facilitate reporting pertaining to key risks to the Board of
Directors, Board Committees and the senior management.
Credit risk is managed and controlled through the existing risk analysis, measurement,
monitoring and reporting systems. A detailed framework on credit risk management
is implemented through various policies, manuals and guidelines, which includes
core and centralised risk evaluation process related to security, rating, lending terms
and conditions as appropriate to the borrower and risk profile of related transactions.
HFCs are susceptible to market-related risks such as liquidity risk, interest rate
risk and funding risk. Liquidity risk arises when there is an asset-liability mismatch
caused by the difference in the maturity profile of the assets and liabilities. This risk
may arise from the unexpected increases in the cost of funding an asset portfolio
at the appropriate maturity and the risk of being unable to liquidate a position in a
timely manner at a reasonable price. HFCs are exposed to liquidity risk in view of
the fact that the assets generated by HFCs are at tenor band of 7 to 8 years against
liability tenor of 3 to 5 years.
We have an average tenor of 7 to 8 years on our asset book, while the liabilities
contracted are of an average tenor of 2 to 3 years. We actively monitor liquidity
position through liquidity contingency plan and stress testing to ensure that it
can meet all the requirements of lenders while being able to consider investment
opportunities as they arise. Such risk management is assigned to the Asset Liability
Committee (ALCO) to monitor these risks on an ongoing basis. The ALCO, comprising
of Senior Management team, lays down policies and quantitative limits. We seek
diverse sources of finance to facilitate flexibility in meeting funding requirements.
Our operations are principally funded by borrowings from capital markets, banks
and financial Institutions.
Market risk of the treasury investments of ICICI HFC is governed by the Investment
Policy and Risk Management Policy. The Investment Policy has established limits for
various risk metrics, which help to control the market risk. It describes investment
functions, incorporating various limits approved for investment, in line with
regulations of National Housing Bank (NHB) Act, 1987 & Housing Finance Company
(HFC) Directions, 2010.
Additionally, Risk Management group also analyses the results of various stress
testing scenarios from the perspective of ensuring Company’s capital adequacy
under any unfavorable/unforeseen market credit circumstances and ensuring timely
actions, wherever required, towards ensuring avoidance of situation that could
threaten the financial stability of the Company.
342
The Operational Risk Management function identifies operational risks in various
products as well as processes and monitors the operational losses incurred by the
Company.
The operations of the Company are periodically subjected to Internal Audit, as per the
annual risk based audit plan duly approved by the ARMC to ensure that the business
operations of the Company are being undertaken as per the Board approved policies
and risk management framework.
The Board is satisfied with the overall risk management framework and regular
monitoring of all major risk areas within the Company.
ARM’S LENGTH PRINCIPLES
The transactions between the Company and the group companies are to be
undertaken on an Arm’s length basis. The following broad principles shall be
adhered to at the time of undertaking such transactions:
All transactions shall have the substantive characteristics of a transaction
a) 
between independent parties.
b) The transactions shall be entered into in a need-based manner and shall be
based on principle of impartiality.
c) The pricing for specific transactions shall be at market related rates and would
be benchmarked against comparable quotes for similar transactions in the
market between independent parties.
d) The transactions shall comply with all statutory/regulatory guidelines, internal
policy norms and procedures (including appropriate documentation) applicable
to such transactions, if engaged with independent parties with similar
background.
STATUTORY AUDITOR
Pursuant to Section 139 of the Companies Act, 2013 and Companies (Audit and
Auditors) Rules, 2014 and as recommended by the Audit & Risk Management
Committee and the Board of Directors, the shareholders of the Company have
appointed B S R & Co. LLP, Chartered Accountants, Firm Registration number
101248W/W-100022, as statutory auditors of the Company to hold office from
the conclusion of Eighteenth AGM till the conclusion of Twenty-Third AGM of the
Company, subject to ratification of their appointment at every Annual General
Meeting (AGM).
The auditors have indicated their willingness to continue as statutory auditors of
the Company and provided the certificate that they meet the eligibility criteria as
required under Companies Act, 2013. Accordingly, ratification of appointment of
Statutory Auditors is being sought from the members of the Company at the ensuing
AGM. The members are also requested to authorise the Board of the Company for
fixing remuneration of the Statutory Auditors for fiscal 2019.
Further, the report of the Statutory Auditors along with notes to schedules is
enclosed to this report. The Auditors’ Report to the members does not contain any
qualification. The Notes to the Accounts referred to in the Auditors’ Report are self-
explanatory and do not call for further comments.
SECRETARIAL AUDIT
In terms of Section 204 of the Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, M/s. Alwyn Jay & Co, a firm
of Practicing Company Secretaries has been appointed as Secretarial Auditors of the
Company. The secretarial audit report does not contain any qualification. The report
of the Secretarial Auditors is enclosed as Annexure 4 to this report.
PARTICULARS OF LOANS, GUARANTEE OR INVESTMENT
The Company being housing finance company registered with National Housing
Bank (NHB), the provision of Section 186 of the Companies Act, 2013 relating to the
loans, guarantee or investment are not applicable to the Company.
ADDITIONAL INFORMATION
The provisions of Section 134(3)(m) of the Companies Act, 2013 relating to
conservation of energy and technology absorption do not apply to the Company.
The Company uses information technology extensively in its operations.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year, the total foreign exchange used was Nil (previous year Nil) and the
total foreign exchange earned was Nil (previous year Nil).
CHANGE OF NATURE OF BUSINESS
There have been no changes in the nature of the business of the Company during
the year under review. However, the Company has ventured into financing against
securities and consumer durables in fiscal 2018.
SUBSIDIARIES
The Company does not have any existing subsidiary and no new subsidiaries were
formed during the year under review.
directors’ report
SIGNIFICANT AND MATERIAL ORDERS (f) 
The directors had devised proper systems to ensure compliance with the
There were no significant and material orders passed by the regulators or courts provisions of all applicable laws and that such systems were adequate and
or tribunals impacting the going concern status and Company’s operations in operating effectively.
future.
ACKNOWLEDGEMENT
DIRECTORS’ RESPONSIBILITY STATEMENT The Directors thank National Housing Bank, other statutory authorities and the
Pursuant to the requirement clause (c) of sub-section (3) of Section 134 of the bankers and lenders of the Company for their continued support.
Companies Act, 2013, Directors confirm that: The Directors express their gratitude for the support and guidance received from
(a) 
In the preparation of the annual accounts, the applicable accounting the Company’s shareholder, ICICI Bank Limited and other ICICI Group companies
standards had been followed along with proper explanation relating to and also express their warm appreciation to all the employees of the Company for
material departures; their commendable teamwork, professionalism and contribution during the year.
The directors extend their sincere thanks to the clients of the Company for their
(b) 
The directors had selected such accounting policies and applied them
continued support.
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the fiscal 2018 and of the profit and loss of the
Company for that period;
For and on behalf of the Board
(c) The directors had taken proper and sufficient care for the maintenance ICICI Home Finance Company Limited
of adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; ANUP BAGCHI
(d) The directors had prepared the annual accounts on a going concern basis; Chairman
(e) The directors, had laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and
Place: Mumbai
were operating effectively; and
Date : May 28, 2018

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directors’ report
Annexure 1
FORM NO. MGT-9 II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
EXTRACT OF ANNUAL RETURN OF THE FINANCIAL All the business activities contributing 10% or more of the total turnover of the
YEAR ENDED ON MARCH 31, 2018 Company shall be stated:
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014] Sl. Name and Description of main NIC Code of the % to Total Turnover
No. Products/Services Product/Service of the Company
I. REGISTRATION AND OTHER DETAILS:
1. The Company’s main business 64192 95%
i) CIN - U65922MH1999PLC120106 is financing by way of loans for
ii) Registration Date – 28/5/1999 the purchase or construction of
residential houses, commercial real
iii) Name of the Company – ICICI Home Finance Company Limited estate and certain other purposes,
iv) Category / Sub-Category of the Company – Company having Share Capital in India. All other activities of the
Company revolve around the main
v) Address of the Registered Office and contact details – business.
ICICI Home Finance Company Limited,
ICICI Bank Towers, Bandra-Kurla Complex, Bandra (East), Mumbai 400051, India.
Tel No.: 022-40093480 Fax No.: 022-40093408 III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Email: investors.relations@icicihfc.com
Sl. Name and CIN/GLN Holding/ % of Applicable
vi) Whether listed Company - Yes No. address of the Subsidiary/ Shares Section
vii) Name, Address and contact details of Registrar & Transfer Agents (RTA) – Company Associate Held
3i Infotech Ltd, 1. ICICI Bank L65190GJ1994PLC021012 Holding 100% 2(46)
Tower #5, 3rd to 6th Floor, International Infotech Park, Vashi, Limited (Holding Company
Navi Mumbai-400703. Tel: 022-67928000 Company & its
Datamatics Business Solutions Limited nominees)
(Formerly known as Datamatics Financial Services Limited)
Plot No. B-5, Part B Crosslane, MIDC, Andheri (East), Mumbai 400093
Tel No.: 022-66712196 Fax No.: 022-66712209

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding

Category of shareholders No. of Shares held at the beginning of the fiscal No. of Shares held at the end of the fiscal % Change
during the
Demat Physical Total % of Total Demat Physical Total % of Total
fiscal
Shares Shares
A. Promoters
(1) Indian
(a) Individuals/HUF - - - - - - - - -
(b) Central Govt - - - - - - - - -
(c) State Govt - - - - - - - - -
(d) Bodies Corp.* 900 200 1,100 0% 900 200 1,100 0% -
(e) Banks / FI 1,098,748,900 - 1,098,748,900 100% 1,098,748,900 - 1,098,748,900 100% -
(i) Any Other. - - - - - - - - -
Sub-total (A) (1):- 1,098,749,800 200 1,098,750,000 100% 1,098,749,800 200 1,098,750,000 100%
(2) Foreign
(a) NRIs - Individuals - - - - - - - - -
(b) Other – Individuals - - - - - - - - -
(c) Bodies Corp. - - - - - - - - -
(d) Banks / FI - - - - - - - - -
(e) Any Other. - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding of Promoter (A) = (A)(1)+(A)(2) 1,098,749,800 200 1,098,750,000 100% 1,098,749,800 200 1,098,750,000 100%
B. Public Shareholding
1. Institutions
(a) Mutual Funds - - - - - - - - -
(b) Banks / FI - - - - - - - - -
(c) Central Govt - - - - - - - - -
(d) State Govt(s) - - - - - - - - -
(e) Venture Capital Funds - - - - - - - - -
(f) Insurance Companies - - - - - - - - -
(g) FIIs - - - - - - - - -
(h) Foreign Venture Capital Funds - - - - - - - - -
(i) Others (specify) - - - - - - - - -
Sub-total (B)(1):- - - - - - - - - -
2. Non-Institutions
(a) Bodies Corp. - - - - - - - - -
(i) Indian - - - - - - - - -
(ii) Overseas - - - - - - - - -
(b) Individuals - - - - - - - - -
(i) Individual shareholders holding nominal - - - - - - - - -
share capital upto ` 1 lakh
(ii) Individual shareholders holding nominal - - - - - - - - -
share capital in excess of ` 1 lakh
(c) Others (specify) - - - - - - - - -
Sub-total (B)(2):- - - - - - - - - -
Total Public Shareholding (B)=(B)(1)+(B)(2) - - - - - - - - -
C. Shares held by Custodian for GDRs & ADRs - - - - - - - - -
Grand Total (A+B+C) 1,098,749,800 200 1,098,750,000 100% 1,098,749,800 200 1,098,750,000 100%
*Beneficial interest on the above shares are held by the Promoter, ICICI Bank Limited

344
directors’ report
Annexure 1
(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the beginning of the fiscal Shareholding at the end of the fiscal % Change
No during the
No. of Shares % of total Shares % of Shares No. of Shares % of total Shares % of Shares fiscal
of the Company Pledged/ of the Company Pledged/
encumbered to encumbered to
total shares total shares
1. ICICI Bank Limited (Holding Company & its nominees) 1,098,748,900 100% - 1,098,748,900 100% - -

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Sl. Particulars Shareholding at the beginning of the fiscal Cumulative Shareholding during the fiscal
No
No. of Shares % of total shares of the No. of Shares % of total shares of the
Company Company
At the beginning of the fiscal 1,098,748,900 100% 1,098,748,900 100%
Date wise Increase / Decrease in Promoters Shareholding - - - -
during the fiscal specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus/ sweat equity etc):
At the end of the fiscal 1,098,748,900 100% 1,098,748,900 100%

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl. For Each of the top 10 Shareholders Shareholding at the beginning of the fiscal Cumulative Shareholding at the end of the fiscal
No.
No. of % of total shares of the No. of % of total shares of the
Shares Company Shares Company
1 ICICI Securities Limited* 600 0.00% 600 0.00%
2 ICICI Lombard General Insurance Company Limited* 100 0.00% 100 0.00%
3 ICICI Investment Management Company Limited* 100 0.00% 100 0.00%
4 ICICI Trusteeship Services Limited* 100 0.00% 100 0.00%
5 ICICI Venture Funds Management Company Limited* 100 0.00% 100 0.00%
6 ICICI Securities Primary Dealership Limited* 100 0.00% 100 0.00%

*Beneficial interest on the above shares are held by the Promoter, ICICI Bank Limited

(v) Shareholding of Directors and Key Managerial Personnel:

Sl. For Each of the Directors and KMP Shareholding at the beginning of the fiscal Cumulative Shareholding during the fiscal
No.
No. of % of total shares of the No. of % of total shares of the
Shares Company Shares Company
At the beginning of the fiscal - - - -
Date wise increase / decrease in Shareholding during the fiscal specifying - - - -
the reasons for increase / decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the end of the fiscal - - - -

V INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` In million)

Particulars Secured Loans Unsecured Fixed Total

excluding Deposits Loans Deposits Indebtedness
Indebtedness at the beginning of the fiscal
i) Principal Amount 11,770.0 58,639.3 3,067.0 73,476.3
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 595.1 1,508.0 212.7 2,316.0
Total (i+ii+iii) 12,365.1 60,147.3 3,279.7 75,792.3
Change in indebtedness during the fiscal
• Addition - 56,802.5 825.2 57,627.7
• Reduction (2,970.0) (45,747.9) (1,455.2) (50,173.1)
Net Change (2,970.0) 11,054.6 (630.0) 7,454.6
Indebtedness at the end of the fiscal
i) Principal Amount 8,800.0 69,694.0 2,437.0 80,931.0
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 244.0 2,109.0 222.5 2,575.5
Total (i+ii+iii) 9,044.0 71,803.0 2,659.5 83,506.5

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directors’ report
Annexure 1
VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sr. Particulars of Remuneration Name MD/WTD/Manager Total

No Amount
Rohit Salhotra (w.e.f. May 2, Anirudh Kamani (`)
2012 to October 31, 2017) (`) (w.e.f. November 1, 2017) (`)
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961:
(i) Salary and Allowances for Fiscal 2018 * 6,021,544 7,342,973 13,364,517
(ii) Bonus Paid in Fiscal 2018 1,976,760 - 1,976,760
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961: 415,253 1,408,576 1,823,829
(c) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961: - - -
2. Perquisite on Employee Stock Option exercised in Fiscal 2018, w.r.t Options granted upto 13,321,596 15,444,140 28,765,736
10 years prior to date of exercise
3. Sweat Equity - - -
4. Commission
- as % of profit - - -
- others, specify - - -
5. Others ( HRA) - 175,355 175,355
Total (1a(i) + a(ii) + b) + (5) 8,413,557 8,926,904 17,340,461
Total Remuneration paid in Fiscal 2018 (excludes Perquisites on Stock Options exercised in
Fiscal 2018 as mentioned in (2))
Ceiling as per section 197 of the Companies Act, 2013 92,027,231
* Please note that Salary and Allowances is net of HRA exemption claimed under Section 10(13A) of Income Tax Act, 1961, which is reported under the head ‘others’.

B. Remuneration to other directors:

(` In million)
Particulars of Remuneration Name of Directors
CA S. Santhanakrishnan Dileep Choksi S. Santhanakrishnan Anup Bagchi Anita Pai N. R. Total
Narayanan Amount
1. Independent Directors
• Fee for attending board / Committee meetings 0.4 0.7 0.7 - - - 1.8
• Commission 0.8 0.8 0.8 - - - 2.4
• Others, please specify - - - - - - -
Total (1) 1.2 1.5 1.5 - - - 4.2
2. Other Non-Executive Directors
• Fee for attending board / committee meetings - - - - - - -
• Commission - - - - - - -
• Others, please specify - - - - - - -
Total (2) - - - - - - -
Total = (1+2) 1.2 1.5 1.5 - - - 4.2
Total Managerial Remuneration 1.2 1.5 1.5 - - - 4.2
Overall Ceiling As per Companies Act, 2013

* During the year, Anup Kumar Saha ceased to be director of the Company and he has not been paid any remuneration.

C. Remuneration to Key Managerial Personnel Other than MD/ Manager/ WTD:

SI. Key Managerial Personal

No.
Pankaj Jain Vikrant Gandhi Pratap Salian Total
(CFO) (w.e.f. April (CFO) (w.e.f. (CS) (`)
21, 2014 to February February 05, 2018) (`)
04, 2018) (`) (`)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961:
(i) Salary and Allowances for Fiscal 2018* 4,584,726 1,018,498 1,732,560 7,335,784
(ii) Bonus Paid in Fiscal 2018 1,755,936 - 232,176 1,988,112
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961: 554,930 251,363 35,636 841,929
(c) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961: - - - -
2 Perquisite on Employee Stock Option exercised in Fiscal 2018, w.r.t Options granted - - - -
upto 10 years prior to date of exercise
3 Sweat Equity - - - -
4 Commission
- as % of profit - - - -
- others, specify - - - -
5 Others ( HRA & LTA ) 870,744 - 59,462 930,206
Total (1a(i) + a(ii) + b) + (5) 7,766,336 1,269,861 2,059,834 11,096,031
Total Remuneration paid in Fiscal 2018
(excludes Perquisites on Stock Options exercised in Fiscal 2018 as mentioned in (2))

* Please note that Salary and Allowances is net of HRA and LTA exemption claimed under Section 10(13A) and Section 10(5) of Income Tax Act, 1961 respectively,
which is reported under the head ‘others’.
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directors’ report

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Penalty /Punishment/ Authority [RD/ Appeal Made,
Companies Act Description Compounding Fees Imposed NCLT/COURT] if Any (Give Details)
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -

Annexure 2

Related party transactions

The details of material related party transactions at arm’s length principles for the year ended March 31, 2018 on an aggregate basis is given below:

Sr. Nature of Contracts/ Transactions Name of the Nature of Relationship Duration of Salient terms of Contracts/ ` in million
No. Related Party Contracts Transactions
- - - - - - -

Sd/-
ANIRUDH KAMANI
Managing Director & CEO

Annexure 3

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES/ Sl. Name Chairman/ Members
INITIATIVES No.
1 Anita Pai Chairperson
1. A brief outline of the Company’s CSR policy, including overview of projects or
programs proposed to be undertaken and a reference to the web-link to the 2 Dileep Choksi Member
CSR policy and projects or programs 3 S. Santhanakrishnan Member
Corporate Social Responsibility (CSR) has been a long-standing commitment at 4 CA S. Santhanakrishnan Member
ICICI Home Finance Company Ltd. The Company’s contribution to social sector The functions of the Committee include review of CSR initiatives undertaken
development includes several pioneering interventions and is implemented by the Company, formulation and recommendation of CSR policy to the Board
through the involvement of stakeholders within the Company and through the indicating the activities to be undertaken by the Company and recommendation
broader community. As per the CSR Policy, CSR activities are being undertaken of the amount of the expenditure to be incurred on such activities, reviewing and
by the Company directly or through ICICI Foundation or through any other entity. recommending the annual CSR plan to the Board, making recommendations
Over the last few years ICICI Foundation has developed significant projects in to the Board with respect to the CSR initiatives, policies and practices of the
specific areas, and has built capabilities for direct project implementation as Company, monitoring the CSR activities, implementation of and compliance
opposed to extending financial support to other organisations. with the CSR Policy, and reviewing and implementing, if required, any other
The CSR Policy of the Company sets the framework guiding the Company’s matter related to CSR initiatives as recommended/suggested by the Board.
CSR activities. It outlines the governance structure, operating framework,
monitoring mechanism, and CSR activities that would be undertaken. The CSR 3. Average net profit of the Company for last three fiscals
committee is the governing body that articulates the scope of CSR activities The average net profit of the Company for the last three fiscals calculated as
and ensures compliance with the CSR policy. The Company’s CSR activities are specified by the Companies Act, 2013 is ` 2,882.9 million.
largely focused in the areas of education, health, skill development and financial
inclusion and other activities as the Company may choose to select in fulfilling 4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)
its CSR objectives. The prescribed CSR expenditure requirement for fiscal 2018 is ` 57.7 million.
The CSR policy was approved by the Committee in October 2014, and put up on
5. Details of CSR spent during the fiscal
the Company website http://www.icicihfc.com/pdf/CSR_policy_hfc.pdf
(a) Total amount to be spent for the fiscal;
2. The Composition of the CSR Committee Total amount spent towards CSR during fiscal 2018 was ` 57.7 million.
The Company’s CSR Committee comprises three independent directors and (b) Amount unspent, if any;
a non-executive director, and is chaired by the non-executive director. The
composition of the Committee is set out below. The required amount was fully spent.

347
directors’ report
Annexure 3
(c) Manner in which the amount spent during the fiscal year is detailed below:

1 2 3 4 5 6 7 8
Sr. CSR Project/ Sector in which the Projects/Programmes Amount Outlay Amount Spent on the Cumulative Amount Spent:
No Activity Project is Covered 1. Local area/others- (Budget) Project/ Project/ Programme Spend upto to Direct/ Through
2. Specify the state /district (Name of the Programme wise Sub-heads: the Reporting Implementing
Identified District/s, State/s where Project/Programme was 1. Direct Expenditure on Period Agency
Undertaken) Project/ Programme, 2.
Overheads:
1 Projects Promoting • 24 vocational skill training centres located in ` 57.7 million ` 57.7 million ` 242.8 million Amount spent
of ICICI sustainable livelihood Bengaluru, Bhubaneswar, Chennai, Coimbatore, through ICICI
Foundation through vocational Delhi, Durg, Guwahati, Hyderabad, Indore, Foundation for
Jaipur, Karnal, Kochi, Kolkata, Lucknow, Mohali,
for Inclusive skill development Mumbai, Mysore, Nagpur, Narsobawadi, Patna, Inclusive Growth.
Growth projects, promoting Pune, Trichy, Vadodara and Vijayawada.
education • 
Vocational training in locally relevant skills at
ICICI Digital Villages across the country.
• Elementary education projects in Chhattisgarh.

6. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
Company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with CSR objectives and the CSR Policy of the Company.

Sd/- Sd/
Anirudh Kamani Anita Pai
Managing Director & CEO CSR Committee Chairman

Annexure 4

FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members,
ICICI Home Finance Company Limited
We have conducted the secretarial audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by ICICI Home Finance
Company Limited (CIN: U65922MH1999PLC120106) (hereinafter called “the
Company”).
The Secretarial Audit was conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts and statutory compliances and expressing our
opinion thereon.
Based on the verification of the Company’s statutory registers, books, papers,
minute books, forms and returns filed and other records maintained by the Company
and the information provided by the Company, its officers, agents and authorised
representatives during the conduct of secretarial audit, we hereby report that in
our opinion, the Company has, during the audit period covering the financial year
ended on March 31, 2018 complied with the statutory provisions listed hereunder
and also that the Company has followed proper Board-processes and have required
compliance mechanism in place to the extent, in the manner and subject to the
reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and
other records maintained by the Company for the financial year ended on 31st
March, 2018, according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made
thereunder;
(iii) 
The Depositories Act, 1996 and the Regulations and Bye-laws framed
thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made
thereunder for compliance in respect of Foreign Direct Investment, Overseas
Direct Investment and External Commercial Borrowings, as applicable;
(v) The following Regulations and Guidelines prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBI Act’), as applicable:
a) The Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992 till May 14, 2015 and thereafter The Securities and
Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009;
d) The Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014 - Not Applicable;
e) The Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008;
f) The Securities and Exchange Board of India (Debenture Trustees)
Regulations, 1993;
g) The Securities and Exchange Board of India (Registrars to an Issue and
Share Transfer Agents) Regulations, 1993 regarding the Companies Act
and dealing with client - Not applicable as the Company is not registered as
Registrar to issue and Share Transfer Agent during the financial year under
review;
h) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009 - Not applicable
i) The Securities and Exchange Board of India (Buyback of Securities)
Regulations, 1998 - Not applicable as the Company has not bought back /
proposed to buy-back any of its securities during the financial year under
review.
(vi) Other specific business/industry related laws applicable to the Company - The
Company has complied with the provisions of the National Housing Bank Act,
1987 and notifications, and other directions pertaining to Housing Finance
Companies issued by the National Housing Bank and the Housing Finance
Companies (NHB) Directions, 2010. Further, the Company has complied with
the IRDA (Registration of Corporate Agents) Regulations, 2015 issued by the
Insurance Regulatory Development Authority and the applicable general laws,
rules, regulations and guidelines.
We have also examined compliance of the following to the extent applicable:
(a) the Secretarial Standards with regards to Meeting of Board of Directors (SS-1)
and General Meeting (SS-2) issued by the Institute of Company Secretaries of
India; and
(b) SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015,
with respect to the Company’s listing of Non-Convertible Debentures.
During the period under review, the Company has complied with the provisions of
the Act, Rules, Regulations, Guidelines and Standards mentioned above.
We further report that –
(a) the Board of Directors of the Company is duly constituted with proper balance
of Non-Executive and Independent Directors;
(b) the changes in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the provisions of
the Act;
(c) Adequate notice is given to all directors to schedule the Board Meetings, agenda
and detailed notes on agenda were sent at least seven days in advance, and a
system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the
meeting; and
(d) The minutes of the Board meetings and Committee Meetings have not identified
any dissent by members of the Board /Committee of the Board, respectively
hence we have no reason to believe that the decisions by the Board were not
approved by all the directors present.
We further report that there are adequate systems and processes in the Company
commensurate with its size and operations to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines. As informed, the Company
has responded appropriately to communication received from various statutory /

348
directors’ report
regulatory authorities including initiating actions for corrective measures, wherever
found necessary.
We further report that during the audit period the following specific events /actions
having major bearing on Company’s affairs in pursuance of the above referred laws,
rules, regulations, guidelines and standards etc.:
1. Approval of Shareholders was obtained for issue of Unsecured Redeemable
Senior Bonds in the nature of Debentures (NCDs) of an amount not exceeding
` 21.00 billion under section 42 & 71 of the Companies Act, 2013 by passing
Special Resolution at the Annual General Meeting held on 26th May, 2017.
2. Allotment of 1,700 nos. of Unsecured Redeemable Senior Bonds in the nature
of Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 850.0
million on private placement basis on 27th June, 2017.
3. Allotment of 3,500 nos. of Unsecured Redeemable Senior Bonds in the nature of
Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 1.75 billion
on private placement basis on 31st July, 2017.
4. Allotment of 3,600 nos. of Unsecured Redeemable Senior Bonds in the nature of
Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 1.80 billion
on private placement basis on 30th August, 2017.
Annexure 4
5. Allotment of 2,000 nos. of Unsecured Redeemable Senior Bonds in the nature of
Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 1.00 billion
on private placement basis on 1st February, 2018.
6. Allotment of 3,000 nos. of Unsecured Redeemable Senior Bonds in the nature of
Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 1.50 billion
on private placement basis on 12th February, 2018.
7. Allotment of 1,000 nos. of Unsecured Redeemable Senior Bonds in the nature
of Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 500.0
million on private placement basis on 26th February, 2018.
8. Allotment of 7,300 nos. of Unsecured Redeemable Senior Bonds in the nature of
Debentures (NCDs) of face value of ` 500,000/- each aggregating to ` 3.65 billion
on private placement basis on 20th March, 2018.
ALWYN JAY & CO,
Sd/-
Place: Mumbai [Vijay Sonone FCS.7301]
Date: April 16, 2018 Certificate of Practice No. 7991

Annexure 5
Statement of Particulars of employees pursuant to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Sl. Name Designation / Gross Remuneration Qualification Experience Age in Date of Commencement Last Employment
No. Nature of Duties (Without ESOP) Received [ ` ] in years years of Employment held
1 2 3 4 5 6 7 8 9
1 Rohit Salhotra MD/CEO (w.e.f. May 2, 2012 to 8,916,622 PGDM, BE 29 52 November 21, 2006 ICICI Bank
October 31, 2017)
2 Anirudh Kamani MD/CEO (w.e.f. November 1, 2017) 9,567,077 CA 28 49 February 1, 2005 ICICI Bank
3 Pankaj Jain CFO (w.e.f. April 21, 2014 to 8,507,386 MMS-FT 23 47 October 3, 2000 ICICI Bank
February 4, 2018)
4 Vikrant Gandhi CFO (w.e.f. February 5, 2018) 1,416,749 CA 21 45 November 17, 2008 ICICI Bank
5 Ashish Kakkar CHRO (w.e.f November 1, 2017) 6,352,391 PGDM-PM & HRD-FT 20 45 December 1, 2016 ICICI Bank
6 Nilesh Deshpande COO (w.e.f February 1, 2018) 1,369,047 B.Com 25 43 December 21, 2001 ICICI Bank
Notes:
1 All appointments are / were non-contractual.
2 Remuneration as shown above comprises of Salary, Leave Salary, Bonus, Gratuity where paid, Leave Travel Assistance, Medical Benefit, House Rent Allowance, Perquisites and Company’s Contribution
to Provident Fund and Superannuation Fund.
3 None of the above employees is related to any Director of the Company.

The ratio of the remuneration of each director to the median employee’s
remuneration and such other details in terms of Section 197(12) of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
(i) The ratio of the remuneration of each director to the median remuneration of
the employees of the Company for the fiscal
The ratio of remuneration of the MD & CEO to the median remuneration of
employees is around 26:1.
(ii) 
The percentage increase in remuneration of each director, Chief Financial
Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the
fiscal
 The percentage increase in remuneration of each Director, Chief Financial
Officer, Chief Executive Officer and Company Secretary ranges from 5% to 7%.
The percentage increase in the median remuneration of employees in
(iii) 
the fiscal
The median remuneration of employees in the fiscal has increased by 6%.
Annexure 5A
(iv) The number of permanent employees on the rolls of Company
The number of permanent employees on rolls of the Company is 332 at March
31, 2018.
(v) Average percentile increase already made in the salaries of employees other
than the managerial personnel in the last fiscal and its comparison with the
percentile increase in the managerial remuneration and justification thereof
and point out if there are any exceptional circumstances for increase in the
managerial remuneration
The average percentile increase made in the salaries of total employees other
than the Key Managerial Personnel for fiscal 2018 is around 9%, while the
average increase in the remuneration of the Key Managerial Personnel is in the
range of 5% to 7%.
(vi) Affirmation that the remuneration is as per the remuneration policy of the
Company
Yes

349
management’s discussion and analysis
BUSINESS ENVIRONMENT
The mortgage market continues to grow, particularly in tier III & IV cities, driven
primarily by consumption demand. This has led to increased focus by most lenders
and builders on these markets. Demand and supply in these markets is also balanced
leading to stable prices.
The demand for home equity and commercial loans against property are on the
rise with borrowers seeking to leverage on such assets. The real estate prices have
remained flat to negative the past few years. Further, increased activity of all banks
& financial institutions in the housing finance domain has resulted in higher Balance
Transfer (BT) cases, resulting in increased pressure on asset book growth and
consequently on portfolio yield.
Going forward the management is optimistic of increased traction in real estate
volumes with higher “end-user” participation, as against a significant presence of the
investor segment earlier. Expectations of a good monsoon are expected to improve
market sentiment and resultant volumes going forward. Additionally, notification
of Real Estate Regulatory Agency (RERA) & its adoption by states would also drive
market specific demand, given enhanced customer confidence.
The Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana
will continue to be a primary driver in the affordable housing segment. The scheme
will continue to increase the propensity to purchase homes over leasing. On the
supply side, we expect the number of transactions in Economically Weaker Section
(EWS), Lower Income Group (LIG) and Middle Income Group (MIG) segment from
` 5 Lacs to ` 45 Lacs homes to go up significantly and most new launches of projects
will be targeted at these customers.
Our Company continues to focus on the emerging markets & underserved customer
segments which provide a reasonable growth opportunity. We will continue to
invest in distribution and build organisational capabilities to offer mortgage related
products and services in these markets.
While growth continues to be muted in the mid and premium segment, the affordable
segment is expected to continue reporting demand uptick. The affordable segment
is now under ‘Infrastructure’ status and with an increased coverage in terms of size
per flat the segment will continue reporting high growth in semi urban and Tier II &
Tier III markets.
Another lever to economic development, credit to MSME segment is expected to
grow manifold backed by differentiated offering, customised credit assessment
and large unmet demand. With revised ‘turnover’ based definition of MSME, GST
compliance and formalisation, the lending opportunities will broaden. Within the
MSME segment, demand for LAP would be higher to meet financing needs for
growth and working capital.
The MSME and affordable segments will require strengthened valuations procedures,
robust prediction of cash flows and end use assessment. Asset quality for these
segments would need to be monitored on a continuous basis.
FINANCIAL HIGHLIGHTS
Profit after tax decreased from ` 1.83 billion in fiscal 2017 to ` 0.64 billion in fiscal
2018. The performance highlights for fiscal 2018 are given below.
• Net interest income decreased from ` 2.97 billion in fiscal 2017 to ` 2.60 billion
in fiscal 2018 primarily due to a decrease in net interest margin (NIM). NIM
decreased by 50 basis points from 3.28% in fiscal 2017 to 2.78% in fiscal 2018
primarily due to reversal of interest income on non-performing assets and a
decrease in yield on interest-earning assets, offset, in part, by a decrease in cost
of funds. The yield on interest earning assets decreased by 110 basis points
from 10.93% in fiscal 2017 to 9.83% in fiscal 2018. Cost of funds decreased
primarily due to a decrease in cost of borrowings.
• Fee income primarily includes processing fee income from retail and corporate
loan business, such as loans servicing charges, fee income from third party
referrals, fee income from property search and advisory business. Fee income
decreased from ` 0.62 billion in fiscal 2017 to ` 0.32 billion in fiscal 2018,
primarily due to a decrease in fees earned by valuation services and property
350
services, offset, in part, by an increase in retail and referral fees. Fee earned
by valuation services decreased from ` 0.31 billion in fiscal 2017 to ` 0.01
billion in fiscal 2018 primarily due to income from valuation services which was
mainly earned from services provided to ICICI Bank. The employees who were
providing this service have been transferred to the Bank.
• Other income primarily includes rent income from property. Other income
increased from ` 0.04 billion in fiscal 2017 to ` 0.07 billion in fiscal 2018.
• Operating expenses primarily includes employee benefits expenses and other
administrative expenses. Staff cost decreased from ` 0.35 billion in fiscal 2017
to ` 0.34 billion in fiscal 2018. Other operating expenses primarily includes
rent, rates and taxes, repairs and maintenance, direct marketing and sourcing
business expenses, collection expenses and depreciation on assets. Other
operating expenses increased from ` 0.54 billion in fiscal 2017 to ` 0.59 billion
in fiscal 2018.
• Provisions increased from a write-back of ` 0.04 billion in fiscal 2017 to a
provision of ` 0.94 billion in fiscal 2018 primarily due to an increase in provision
on CRF loans and provision towards diminution in the value of equity shares of
ARCIL.
• The Company transferred ` 0.21 billion to Special Reserve in fiscal 2018 in
accordance with Section 29C of National Housing Bank Act, 1987. Transfer to
Special Reserve amounted to ` 0.37 billion in fiscal 2017.
• The Company paid Interim dividend of 3.15% (excluding dividend distribution
tax) amounting to ` 0.35 billion on paid up share capital of ` 10.99 billion in fiscal
2018 (fiscal 2017: 9.70% ; ` 1.07 billion). Further, the Company has not declared
any final dividend in fiscal 2018 (fiscal 2017: 1.36% ; ` 0.15 billion). Balance
carried forward to the next year amounted to ` 0.05 billion in fiscal 2018 (fiscal
2017: ` 0.21 billion).
• Total assets increased from ` 94.27 billion at March 31, 2017 to ` 102.27 billion
at March 31, 2018.
• Loans and advances increased from ` 89.73 billion at March 31, 2017 to ` 96.46
billion at March 31, 2018. Gross non-performing loans (NPA) increased from
` 1.55 billion at March 31, 2017 to ` 3.32 billion at March 31, 2018. Gross NPA
ratio increased from 1.73% at March 31, 2017 to 3.44% at March 31, 2018. Net
NPA ratio increased from 0.75% at March 31, 2017 to 2.14% at March 31, 2018.
• Investments increased from ` 1.48 billion at March 31, 2017 to ` 2.82 billion at
March 31, 2018.
• Total borrowings increased from ` 74.19 billion at March 31, 2017 to ` 81.81
billion at March 31, 2018.
• The capital adequacy ratio was 23.84% at March 31, 2018 compared to 26.96%
at March 31, 2017 against NHB requirement of 12.00% and tier-1 capital
adequacy ratio was 22.44% at March 31, 2018 compared to 24.61% at March
31, 2017.
The following table sets forth, for the periods indicated, the key financial ratios.
Fiscal 2017 Fiscal 2018
Return on average equity (%)1 11.5 4.0
Return on average assets (%)2 2.0 0.7
Earnings per share (Basic & Diluted) (`) 1.67 0.58
Net interest margin (%) 3.3 2.8
Fee / Income (%) 17.1 10.5
Cost / Income (%)3 24.3 31.3
1. Return on average equity is the ratio of the net profit after tax to average
equity share capital and reserves.
2. Return on average assets is the ratio of net profit after tax to average
assets.
3. Cost represents operating expense. Income represents net interest income
and non-interest income.
independent auditor’s report
to the members of icici Home Finance Company Limited
Report on the audit of the financial statements
We have audited the accompanying financial statements of ICICI Home Finance
Company Limited (the “Company”), which comprise the Balance Sheet as at 31
March 2018, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and summary of the significant accounting policies and other
explanatory information.
Management’s responsibility for the financial statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (the “Act”) with respect to the preparation of these
financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards
on Auditing prescribed under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company’s Directors, as
well as evaluating the overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
the auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the
audit evidence obtained up to the date of the auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by
the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the
Company as at 31 March 2018, and its profit and its cash flows for the year ended
on that date.
Other matter
The comparative financial information of the Company for the year ended 31 March
2017 as included in these financial statements have been audited by the predecessor
auditor who had audited the financial statements for the year ended 31 March 2017.
The report of the predecessor auditor on the comparative financial information
dated 18 April 2017 expressed an unmodified opinion. Our opinion is not modified
in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (the “Order”)
issued by the Central Government in terms of section 143 (11) of the Act, we
give in “Annexure A”, a statement on the matters specified in paragraph 3 and 4
of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which
to the best of our knowledge and belief were necessary for the purposes of
our audit;
b) In our opinion, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
In our opinion, the aforesaid financial statements comply with the
d) 
Accounting Standards prescribed under Section 133 of the Act;
e) On the basis of the written representations received from the directors as
on 31 March 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2018 from being appointed as a
director in terms of Section 164 (2) of the Act;
f) 
With respect to the adequacy of the internal financial controls with
reference to the financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure
B”; and
g) With respect to the other matters to be included in the Auditor’s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the
explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer Note 31 to the
financial statements;
ii. the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses;
iii. 
there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company; and
iv. 
the disclosures in the financial statements regarding holdings as
well as dealings in specified bank notes during the period from 8
November 2016 to 30 December 2016 have not been made since they
do not pertain to the financial year ended 31 March 2018. However,
amounts as appearing in the audited financial statements for the year
ended 31 March 2017 have been disclosed.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
19 April 2018 Membership No: 113156
351
annexure A to the auditor’s report
Annexure A to the Independent Auditor’s Report of even date on the financial statements of ICICI Home
Finance Company Limited

The Annexure referred to in the Independent Auditor’s Report to the members of Name Nature of dues Amount Period to which Forum where
ICICI Home Finance Company Limited (the “Company”) on the financial statements of the (` in million) the amount dispute is pending
for the year ended 31 March 2018, we report that: statute relates
i. (a) 
The Company has maintained proper records showing full particulars, Income Income Tax 13.68 FY 2008-2009 Income Tax
including quantitative details and situation of fixed assets. Tax Act, demands raised Appellate Tribunal,
(b) The Company has a regular programme of physical verification of its fixed 1961 against the Mumbai
Company
assets by which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical verification Income Income Tax 114.81 FY 2010-2011 Commissioner
is reasonable having regard to the size of the Company and the nature of Tax Act, demands raised of Income Tax
its assets. No material discrepancies were noticed on such verification. 1961 against the (Appeals)
Company
(c) According to the information and explanations given to us and on the
Income Income Tax 200.43 FY 2011-2012 Commissioner
basis of our examination of the records of the Company, the title deeds of
Tax Act, demands raised of Income Tax
immovable properties included in fixed assets are held in the name of the
1961 against the (Appeals)
Company. Company
ii. 
The Company’s business does not involve holding of any inventories.
Accordingly, clause 3(ii) of the Order is not applicable to the Company. viii. In our opinion and according to the information and explanations given to us,
iii. According to the information and explanations given to us, the Company has the Company has not defaulted in the repayment of loans or borrowing to
not granted any loans, secured or unsecured to companies, firms, Limited financial institutions, banks, or debenture holders during the year. During the
Liability Partnerships or other parties covered in the register maintained under year, the Company did not have any loans or borrowing from the Government.
section 189 of the Companies Act, 2013 (the “Act). Accordingly, clause 3(iii) of ix. In our opinion and according to the information and explanations given to us,
the Order is not applicable to the Company. the term loans taken by the Company have been applied for the purpose for
iv. In our opinion and according to the information and explanations given to which they were raised. The Company has not raised money by way of initial
us, the Company has not granted any loans, made investments or provided public offer or further public offer during the year.
guarantees and securities under Section 185 and 186 of the Act. Accordingly, x. During the course of our examination of the books and records of the Company,
para 3(iv) of the Order is not applicable. carried out in accordance with the generally accepted auditing practices in India,
v. According to the information and explanation given to us, in the opinion of and according to the information and explanations given to us, no material fraud
management of the Company, since the Company is a housing finance company, by the Company or on the Company by its officers or employees has been
directives issued by Reserve Bank of India and the provisions of section 73 to noticed or reported during year.
76 or any other relevant provisions of the Act, and the rules framed thereunder, xi. According to the information and explanations give to us and based on our
are not applicable to the Company. Further, in our opinion and according to examination of the records of the Company, the Company has paid / provided
the information and explanations given to us, the provisions of The Housing for managerial remuneration in accordance with the requisite approvals
Finance Companies (NHB) Directions, 2010, as amended have been complied mandated by the provisions of section 197 read with Schedule V to the Act.
with. We are informed by management of the Company that no order has been
passed by the Company Law Board, National Company Law Tribunal or Reserve xii. In our opinion and according to the information and explanations given to us,
Bank of India or any other court or any other Tribunal. the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is
not applicable.
vi. The Central Government has not prescribed the maintenance of cost records
under section 148(1) of the Act, for any services rendered by the Company. xiii. According to the information and explanations given to us and on the basis of
Accordingly, clause 3(vi) of the Order is not applicable to the Company. our examination of the records of the Company, transactions with the related
parties are in compliance with section 177 and 188 of the Act, where applicable
vii. (a) According to the information and explanations given to us and on the basis and the details have been disclosed in the financial statements, as required by
of our examination of the records of the Company, amounts deducted / the applicable accounting standards.
accrued in the books of account in respect of undisputed statutory dues
including provident fund, employees’ state insurance, income tax, service xiv. According to the information and explanations given to us and based on
tax, goods and service tax, cess and other material statutory dues have our examination of the records of the Company, the Company has not made
generally been regularly deposited during the year by the Company with any preferential allotment or private placement of shares or fully or partly
the appropriate authorities though there has been one delay in deposit of convertible debentures during the year. Accordingly, clause 3(xiv) of the Order
service tax. As explained to us, the Company did not have any dues on is not applicable.
account of duty of customs, duty of excise, sales tax and value added tax. xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered
into any non-cash transactions with directors or persons connected with him.
(b) According to the information and explanations given to us, no undisputed Accordingly, clause 3(xv) of the Order is not applicable.
amounts payable in respect of provident fund, employees’ state insurance,
income tax, service tax, goods and service tax, cess and other material xvi. According to the information and explanations given to us, the provisions of
statutory dues were in arrears as at 31 March 2018 for a period of more section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the
than six months from the date they became payable. Company.

(c) According to the information and explanations given to us, the following
amounts of income tax dues have not been deposited by the Company on For B S R & Co. LLP
account of disputes: Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Name Nature of dues Amount Period to which Forum where
of the (` in million) the amount dispute is pending
statute relates
Income Income Tax 59.91 Financial Year Assessing Officer, Venkataramanan Vishwanath
Tax Act, demands raised (“FY”) Mumbai Mumbai Partner
1961 against the 2004-2005 19 April 2018 Membership No: 113156
Company
Income Income Tax 27.44 FY 2007-2008 Assessing Officer,
Tax Act, demands raised Mumbai
1961 against the
Company

352
annexure B to the Independent auditor’s report
Annexure - B to the Independent Auditor’s Report of even date on the financial statements of ICICI Home
Finance Company Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial reporting of ICICI Home
Finance Company Limited (the “Company”) as of 31 March 2018 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Management’s responsibility for internal financial controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India (the “ICAI”). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence
to the Company’s policies, safeguarding of its assets, prevention and detection of
frauds and errors, accuracy and completeness of the accounting records, and timely
preparation of reliable financial information, as required under the Act.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Auditing, issued by the
ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
Inherent limitations of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
19 April 2018 Membership No: 113156
353
balance sheet statement of profit and loss
at March 31, 2018 for the year ended March 31, 2018

(` in million) (` in million)
Particulars Note March 31, March 31, Particulars Note March 31,
2017
March 31,
2018 2017
2018
I EQUITY AND LIABILITIES I Revenue from operations 18 9,569.3 10,617.0
(1) Shareholders' funds
(a) Share capital 3 10,987.5 10,987.5 II Other income (incl. prior period income
(b) Reserves and surplus 4 5,145.7 5,084.2 ` 64.4 mn (March 2017 ` Nil)) 19 75.0 41.3
16,133.2 16,071.7
(2) Non-current liabilities III Total revenue (I+II) 9,644.3 10,658.3
(a) Long term borrowings 5 44,601.2 48,171.3
IV Expenses:
(b) Deferred tax liabilities
(Net) 13 378.5 511.7
Finance cost 20 6,263.0 6,660.0
(c) Other long term
liabilities 6 104.8 106.5
Employee benefits expenses 21 342.5 351.1
(d) Long term provisions 7 1,709.8 1,348.6
46,794.3 50,138.1
Depreciation and amortisation expenses 11 23.3 23.3
(3) Current liabilities
(a) S hort term borrowings 8 4,901.9 9,704.5 Establishment and other expenses 22 979.4 904.8
(b) Trade payables 9
 Micro enterprises and Provision / write offs (net) 23 936.2 (37.1)
Small enterprises 5.6 0.2
 Other than Micro 8,544.4 7,902.1
enterprises and Small
enterprises 126.8 87.2
Less: Expenses recovered 22 19.5 26.5
(c) Other current liabilities 10 34,191.5 18,196.1
(d) Short term provisions 7 114.0 101.7 8,524.9 7,875.6
39,339.8 28,089.7
102,267.3 94,299.5 V Profit before exceptional and
II ASSETS extraordinary items and Tax (III-IV) 1,119.4 2,782.7
(1) Non-current assets
(a) P
 roperty, plant and VI Exceptional items - -
equipment 11
(i) Tangible assets 798.1 798.9 VII Profit before extraordinary items and
tax (V-VI) 1,119.4 2,782.7
(ii) Intangible assets 5.0 1.1
(iii) Capital work in
VIII Extraordinary items - -
progress 0.1 0.1
803.2 800.1
IX Profit before tax (VII-VIII) 1,119.4 2,782.7
(b) Non-current
investments 12 2,510.4 809.7
X Tax expense:
(c) Long term loans and
advances 14 88,702.1 81,483.7
Current tax 610.0 828.0
(d) Other non-current
assets 16 53.0 -
Deferred tax (133.1) 122.1
91,265.5 82,293.4
(2) Current assets XI Profit for the year (IX-X) 642.5 1,832.6
(a) Current investments 12 100.1 250.6
(b) Trade receivables 15 26.1 4.1 XII Earnings per equity share: 24
(c) Cash and bank balances 17 1,150.8 1,615.4
(d) Short term loans & (1) Basic (in `) 0.58 1.67
advances 14 8,276.4 8,704.2
(e) Other current assets 16 645.2 631.7 (2) Diluted (in `) 0.58 1.67
10,198.6 11,206.0
102,267.3 94,299.5
Summary of significant
accounting policies 2.1
The accompanying notes are an integral part of the financial statements

As per our report of even date For and on behalf of the Board
ICICI Home Finance Company Limited

For B S R & Co. LLP Anup Bagchi Anirudh Kamani

Chartered Accountants Chairman Managing Director & CEO
Firm’s Registration No: 101248W/W-100022

Venkataramanan Vishwanath Vikrant Gandhi

Partner Chief Financial Officer
Membership No: 113156

Place: Mumbai PRATAP SALIAN

Dated: April 19, 2018 Company Secretary

354
cash flow statement
for the year ended March 31, 2018

(` in million)
Particulars Year ended Year ended
March 31, 2018 March 31, 2017

A Cash flow from operating activities:

Profit before taxation and exceptional items 1,119.4 2,782.7
Adjustments for:
Depreciation / amortisation 23.3 23.3
Amortisation of premium on investments 2.9 4.6
Provision for gratuity and other staff benefits 12.6 (13.3)
Write back against standard assets (12.6) (29.7)
Loss / (Gain) on sale of fixed assets / written off* 0.0 0.0
Provision for NPA and others 392.1 (7.4)
Provision towards investment in equity shares 232.7 -
Provision towards investment in SRs 324.0 -
(Profit) / Loss on sale of government securities and long term investments - (1.1)
Interest expense on borrowings 6,214.5 6,607.8
Interest income on loans (9,116.9) (9,686.4)
Interest received on investments (34.1) (63.5)
Loss on revaluation of fixed assets - 0.3
Dividend income (38.3) (92.6)
Profit on sale of mutual fund units (6.2) (24.7)
Operating profit before working capital changes (886.6) (500.0)
Adjustments for increase or decrease in:
(Increase) / Decrease in Trade receivables (22.0) 116.2
(Increase) / Decrease in Other assets (71.5) 10.0
(Decrease) / Increase in Trade payables 44.9 (142.9)
(Decrease) / Increase in Other liabilities (66.8) (294.7)
(Decrease) / Increase in Provisions 100.3 (18.9)
Loans given (net movement) (6,732.7) (2,506.7)
Interest expenses paid (6,085.6) (6,568.7)
Interest income received 9,103.6 9,676.1
Cash generated from Operations (4,616.4) (229.6)
Income taxes paid (net) (709.7) (760.9)
Net cash used in operating activities - A (5,326.1) (990.5)
B Cash Flow from investing activities:
Purchase of fixed assets (including capital work in progress) (12.7) (12.5)
Proceeds from sale of fixed assets 1.0 -
Purchase of investments (2,278.9) (5.8)
Proceeds from sale of investments 50.0 740.8
Profit on sale of government securities and long term investments - 1.1
Purchase of mutual fund units (11,344.4) (29,327.9)
Proceeds from sale of mutual fund units 11,350.6 29,352.6
Dividend income 38.3 92.6
Interest received on investments 34.1 63.5
Fixed deposits matured - 200.0
Net cash (used in) / generated from investing activities - B (2,162.0) 1,104.4
C Cash flow from financing activities:
Dividend and dividend distribution tax paid (595.8) (1,282.8)
Proceeds from borrowings 263,271.3 240,007.5
Repayment of borrowings (255,652.0) (240,295.4)
Net cash generated from / (used in) financing activities - C 7,023.5 (1,570.7)
Net decrease in cash and cash equivalents (A+B+C) (464.6) (1,456.8)
Cash and cash equivalents as at beginning of the year 1,615.4 3,072.2
Cash and Cash equivalents as at end of the year 1,150.8 1,615.4
Notes:
1. Cash and cash equivalents consists of:
A. Bank balances
1) Current accounts (including bank deposits with original maturity less than 3 months) 60.8 405.4
B. Investments in mutual fund units 210.0 420.0
C. Investment redemption receivable 880.0 790.0
1,150.8 1,615.4
2. The above cash flow statement has been prepared under the 'Indirect Method' as set out in Accounting Standard - 3 on “ Cash
Flow Statements “
*Amount is less than ` 0.1 million for the years ended March 31, 2018 and March 31, 2017
As per our report of even date For and on behalf of the Board
ICICI Home Finance Company Limited

For B S R & Co. LLP Anup Bagchi Anirudh Kamani

Chartered Accountants Chairman Managing Director & CEO
Firm’s Registration No: 101248W/W-100022

Venkataramanan Vishwanath Vikrant Gandhi

Partner Chief Financial Officer
Membership No: 113156

Place: Mumbai PRATAP SALIAN

Dated: April 19, 2018 Company Secretary

355
 notes
forming part of the accounts
NOTES FORMING PART OF ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES
1. Corporate information
 ICICI Home Finance Company Limited (the Company) is a public company
domiciled in India and incorporated under the provisions of the Companies
Act, 1956. The Company is registered with the National Housing Bank (NHB),
and is governed by the provisions of the Housing Finance Companies (NHB)
Directions, 2010, as amended and other directions, regulations and circulars
issued by NHB. The Company is engaged in providing financial assistance for
specified interest & maturity to any person/persons for the purpose of acquiring,
constructing, erecting, improving, extending, altering, repairing, renovating,
developing any house, flats or buildings or any form of real estate or any part
or portion thereof. The Company also provides financial assistance to any
person for specified purpose against the security of any immovable property.
The Company is also engaged in providing advisory, consultancy, broking in
property service, sourcing and servicing home loans, loan against securities,
financing against consumer durables.
2. Basis of preparation
The financial statements of the Company have been prepared to comply in all
material respects with the Accounting Standards specified under section 133 of
the Companies Act, 2013, the guidelines issued by NHB and other accounting
principles generally accepted in India. The financial statements have been
prepared on an accrual basis under the historical cost convention.
2.1 Significant accounting policies
a) Presentation and disclosure of financial statements
The Company prepare its financial statements as per Schedule III of the
Companies Act, 2013 applicable for preparation and presentation of the
financial statements. The term ‘Operating cycle‘ is defined as the time
between the acquisition of assets for processing and their realisation in
cash or cash equivalents. In the Company, normal operating cycle cannot
be identified hence it is assumed to have duration of 12 months as per
Schedule III notified under Companies Act, 2013. The Company considers
12 months as its operating cycle.
b) Use of estimates
The preparation of the financial statements in conformity with Indian GAAP
requires management to make judgments, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities
and the disclosure of contingent liabilities, at the end of the reporting period.
Although these estimates are based on management’s best knowledge
of current events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment to
the carrying amounts of assets or liabilities in future periods.
c) Revenue recognition period of 12 months from the date of purchase.
Income from loan
Repayment of Housing Loans is by way of Equated Monthly Installments
(EMI) comprising of principal and interest. Interest income on EMI/Pre-
EMI cases on housing loan is accounted for on accrual basis as per NHB
guidelines. Loan origination income i.e. processing fees and other charges
collected upfront, are recognised on origination of the loan. Interest on non-
performing assets is recognised only on realisation as per the guidelines
issued by the NHB.
Income from Investment
Interest on Government Securities and Bank deposits are recognised on a
time proportionate basis. Dividend is accounted on an accrual basis when
the right to receive the dividend is established.
Fee Income
Fee income is recognised in accordance with principles laid down in
accounting standard 9 ‘Revenue Recognition’. Property Service Fees are
recognised to the extent of invoice raised on the customer, when right to
receive payment is established. Mortgage Valuation Fees are recognised on
accrual basis.
d) Investments
Investments that are readily realisable and intended to be held for not more
than a year are classified as current investments. All other investments are
classified as long-term investments. Current investments are carried at
lower of cost and fair value.
Long-term investments are carried at their acquisition cost or at amortised
cost, if acquired at a premium over the face value. Any premium over the
face value of the securities acquired is amortised over the remaining period
to maturity on a constant yield basis. However, provision for diminution in
value is made to recognise a decline other than temporary in the value of
the investments.
356
e) Provisions / write-offs on loans and other credit facilities
i) Loans and other credit facilities are classified as per the National
Housing Bank (NHB) guidelines, into performing and non-performing
assets. Further non-performing assets are classified into sub-
standard, doubtful and loss assets and provision made based on
criteria stipulated by NHB guidelines. Additional provisions are made
against specific non- performing assets over and above stated in
NHB guidelines, if in the opinion of management, such provisions are
necessary.
ii) The Company maintains general provisions to cover potential credit
losses, which are inherent in any loan portfolio but not identified in
accordance with NHB Guidelines. For standard assets, additional
general provisions are determined having regard to overall portfolio
quality, asset growth, economic conditions and other risk factors.
f) Property, plant and equipment and intangible assets
Property, Plant and Equipment (PPE), other than premises, are carried at
cost less accumulated depreciation and impairment, if any. Freehold Land
and Office Buildings are carried at revalued amount, being fair value at
the date of revaluation less accumulated depreciation. Cost includes
freight, duties, taxes and incidental expenses related to the acquisition and
installation of the asset.
Intangible Assets comprising of software are stated at cost of acquisition,
including any cost attributable for bringing the same to its working
condition, less accumulated amortisation. Any expenses on such software
for support and maintenance payable periodically are charged to the
Statement of Profit and Loss.
g) Depreciation and amortisation
Depreciation on tangible assets is charged on Straight Line Method based
on economic useful life as per limits specified in Part ‘C’ to Schedule II of
the Companies Act, 2013 and in accordance with Accounting Standards
issued by ICAI.
Particulars Useful life as per Depreciation
Schedule II rate
Office Buildings on Freehold Land 60 Years 1.67%
Improvements to Leasehold Property 3 Years 33.33%
Furniture and Fixtures 10 Years 10.00%
Office Equipments 5 Years 20.00%
Computers 3 Years 33.33%
Software 4 Years 25.00%
Items individually costing upto ` 5,000/- are depreciated fully over the
h) Retirement and Other Employee Benefits
i)  The Company is statutorily required to maintain a provident fund
as part of retirement benefits to its employees. Each employee
contributes a certain percentage of his or her basic salary and the
Company contributes an equal amount for such employees. The
Company makes contribution as required by The Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952 to Employees’ Pension
Scheme administered by the Regional Provident Fund Commissioner.
The Company makes balance contributions to a fund administered by
trustees. The funds are invested according to the rules prescribed by
the Government of India.
ii) Gratuity liability is defined benefit obligation and is provided for on
the basis of an actuarial valuation on Projected Unit Credit Method.
Current and Non-Current obligation have been bifurcated as per
actuarial valuation.
iii) Accumulated leave, which is expected to be utilised within the next
12 months, is treated as short term employee benefit. The Company
measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement
that has accumulated at the reporting date. The Company treats
accumulated leave expected to be carried forward beyond twelve
months, as long term employee benefit for measurement purposes.
The Company provides for leave encashment benefits, which is a
defined benefit obligation, based on actuarial valuation conducted
by an independent actuary. Current and Non-Current obligation have
been bifurcated as per actuarial valuation report.
iv) Actuarial gains/losses are immediately recognised in the Statement of
Profit and Loss and are not deferred.
notes
forming part of the accounts
i) Taxation
Tax expense comprises of current and deferred tax.
Current Tax
Current income tax is measured at the expected amount to be paid to the
tax authorities in accordance with the Indian Income Tax Act, 1961.
Deferred Tax
Deferred tax assets and liabilities are recognised for the future tax
consequences attibutable to timing differences between the accounting
income as per the Company’s financial statements and the taxable income
for the year.
Deferred tax charge or credit and the corresponding deferred tax liabilities
or assets are recognised using the tax rates that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is reasonable
certainty that the assets can be realised in future, however, where there
is unabsorbed depreciation or carried forward loss under taxation laws,
deferred tax assets thereon are recognised only if there is virtual certainty
of realisation of such assets.
Deferred tax assets are reviewed at the each balance sheet date and
appropriately adjusted to reflect the amount that is reasonably/virtually
certain to be realised.
j) Transfer and servicing of financial assets
 The Company transfers loans to bankruptcy remote Special Purpose
Vehicles through securitisation transactions. The transferred loans are
derecognised from the books of the Company and gains / losses are
recorded, only if the Company surrenders the rights to benefits specified
in the loan contract. Credit provisions and servicing obligations are debited
separately to the Statement of Profit and Loss. Retained beneficial interest
in the loan is measured by allocating the carrying values of the loans
between the assets sold and retained interest, based on the relative fair
value measured at the date of securitisation. The carrying value of the
retained beneficial interest is estimated at each reporting period based on
the forecasted cash flows from the assets securitised after adjusting for
projected delinquencies, prepayments etc. The resultant gains/ losses, if
any, are recorded in the Statement of Profit and Loss.
k) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events of bonus
issue; bonus element in a rights issue to existing shareholders; share
split; and reverse share split (consolidation of shares). For the purpose of
calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effects of all
potential dilutive equity shares.
l) Accounting for swaps
The Company is into the business of home loans and sanctions loans
primarily at a floating rate of interest. The Company borrows funds from
the market through Commercial Papers, Debentures/Bonds and Fixed
Deposits that are at a fixed rate of interest and Term Loans that are at a
fixed/floating rate of interest. The floating rate asset book and fixed rate
liability book expose the balance sheet of the Company to interest rate
risk. In order to offset / mitigate the interest rate risk that the Company is
exposed to, the Company enters into derivative contracts such as interest
rate swaps to hedge balance sheet liabilities which are structured such that
they bear an opposite and offsetting impact with the underlying balance
sheet items. The impact of such derivative instruments are correlated with
the movements of the underlying liabilities. Hedge derivative transactions
are accounted for pursuant to the principles of hedge accounting based
on Guidance Note on Accounting for Derivative Contracts issued by ICAI.
Interest differential on swaps received/paid is adjusted from/to interest
expenses. The related amount receivable from and payable to the swap
counter parties is included in the Other Assets or Other Liabilities in the
Balance Sheet. In case the hedge is ineffective, derivative instrument is fair
valued, and resultant Mark To Market (MTM) gains / losses are accounted
in the Statement of Profit and Loss.
m) Impairment
i) The carrying amounts of assets are reviewed at the balance sheet date
for any indication of impairment based on internal/external factors.
An impairment loss is recognised wherever the carrying amount of
Continued
an asset exceeds its recoverable amount. The recoverable amount is
the higher of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their
present value at the weighted average cost of capital.
ii) After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
n) Provisions and Contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted to its present value
and are determined based on management estimate required to settle the
obligation at the balance sheet date. These are reviewed at the balance
sheet date and adjusted to reflect the current management estimates.
A contingent liability is a possible obligation that arises from past events
whose existence will be confirmed by the occurrence or non occurrence
of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognised because it is not probable
that an outflow of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognised because it cannot be measured reliably.
The Company does not recognise a contingent liability but discloses
its existence in the financial statements. Contingent assets are neither
recognised nor disclosed.
o) Leases
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the leased term are classified as operating leases.
Operating lease payments are recognised as an expense in the Statement
of Profit and Loss on a straight-line basis over the lease term.
p) Cash and cash equivalents
 Cash comprises cash on hand and demand deposits with bank. Cash
equivalents includes liquid investments in mutual fund units of short term
debt instruments that are readily convertible into cash at its NAV and
subject to an insignificant risk of changes in value.
q) Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such assets. A
qualifying asset is one that necessarily takes a substantial period of time to
get ready for its intended use. All other borrowing costs are charged to the
Statement of Profit and Loss.
The difference between the discounted amount mobilised and redemption
value of Commercial Papers/ Zero Coupon Bond/ NCD is apportioned on
time basis over the life of instrument and charged as interest expense in
the Statement of Profit and Loss.
r) Accounting for proposed dividend
As per the requirements of AS 4 (pre-revised), the Company used to create
a liability for dividend proposed / declared after the balance sheet date if
dividend related to periods covered by the financial statements, however
as per AS 4 (Revised), the Company cannot create a liability for such
dividend proposed / declared after the balance sheet date. Accordingly, for
the year ended March 31, 2017, it had an impact of ` 179.9 million where
surplus in the Statement of Profit and Loss would have been lower by
` 179.9 million and current provision would have been higher by ` 179.9
million (including dividend distribution tax of ` 30.4 million). Accordingly,
the Company had disclosed dividend proposed by board of directors after
the balance sheet date in the notes. (Refer Note 3(i))
3. Share Capital
(` in million)
Particulars At At
March 31, 2018 March 31, 2017
Authorised shares
2,385,000,000 Equity shares of ` 10 each (March
2017 - 2,385,000,000) 23,850.0 23,850.0
15,000,000 Preference shares of ` 10 each
(March 2017 – 15,000,000) 150.0 150.0
Total authorised shares 24,000.0 24,000.0
Issued, subscribed and paid up shares
1,098,750,000 Equity shares of ` 10 each fully
paid up (March 2017 - 1,098,750,000) 10,987.5 10,987.5
Total Issued, subscribed and paid up shares 10,987.5 10,987.5
357
 notes
forming part of the accounts Continued
(i) Reconciliation of the shares outstanding at the beginning and at the end of the (a) Details of Statutory Reserves
reporting year.
(` in million)
Equity Shares At At
Particulars
March 31, 2018 March 31, 2017
Particulars At March 31, 2018 At March 31, 2017 Balance at the beginning of the year
No. (` million) No. (` million) a) 
Statutory Reserve u/s 29C of National
At the beginning of the year 1,098,750,000 10,987.5 1,098,750,000 10,987.5 Housing Bank Act, 1987 1,682.8 1,550.4
Issued during the period - - - - b) Amount of Special Reserve u/s 36(1) (viii)
of Income Tax Act, 1961 taken into account
Outstanding at the end of
for the purpose of Statutory Reserve under
the year 1,098,750,000 10,987.5 1,098,750,000 10,987.5
section 29C of the National Housing Bank
Act, 1987 2,708.8 2,474.2
Terms / rights attached to equity shares
c) Total 4,391.6 4,024.6
The Company has only one class of equity shares having a par value of ` 10
Addition / Appropriation / Withdrawal during
per share. Each holder of equity shares is entitled to one vote per share. The
the year
Company declares and pays dividends in Indian rupees. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the Add:
a) 
Amount transferred u/s 29C of the
ensuing Annual General Meeting. National Housing Bank Act, 1987 0.1 132.4

During the year ended March 31, 2018, the amount of per share dividend b) Amount of Special Reserve u/s 36(1)
(viii) of Income Tax Act, 1961 taken into
distributed to equity shareholder is ` 0.451 (excluding dividend distribution tax)
account for the purpose of Statutory
(March 31, 2017 - ` 0.970).
Reserve under section 29C of the
In the event of liquidation of the Company, the holders of equity shares will be National Housing Bank Act, 1987 205.9 234.6
entitled to receive remaining assets of the Company, after distribution of all Less:
a) 
Amount appropriated from the
preferential amounts. The distribution will be in proportion to the number of Statutory Reserve u/s 29C of the
equity shares held by the shareholders. National Housing Bank Act, 1987 - -
(ii) Details of shareholders holding more than 5% shares in the Company Amount withdrawn from the Special
b) 
Reserve u/s 36(1)(viii) of Income Tax Act,
Particulars At At 1961 which has been taken into account
March 31, 2018 March 31, 2017 for the purpose of provisions u/s 29C of
No. (` million) % No. (` million) % the National Housing Bank Act, 1987 - -
Equity shares of holding holding Balance at the end of the year
` 10 each fully paid in the in the
class class a) Statutory Reserve u/s 29C of the National
ICICI Bank Limited Housing Bank Act, 1987 1,682.9 1,682.8
(Holding Company b) 
Amount of Special Reserve u/s 36(1)(viii) of
& its nominees) 1,098,750,000 10,987.5 100.0% 1,098,750,000 10,987.5 100.0% Income Tax Act, 1961 taken into account for the
purpose of Statutory Reserve under section 29C
4. Reserves and surplus of the National Housing Bank Act, 1987 2,914.7 2,708.8
(` in million) c Total 4,597.6 4,391.6
At At
Particulars Note: (a) The Special Reserve created as per Section 29C of the National

March 31, 2018 March 31, 2017 Housing Bank Act, 1987, qualifies for deduction as specified u/s 36 (1) (viii) of
(i) General reserve the Income Tax Act, 1961 and accordingly, the Company has been availing tax
As per last balance sheet 249.3 249.3 benefits for such transfers.
Add: Transferred from statement of profit and loss - - (b) There has been no draw down from reserves during the year ended March
Add: Transferred from Revaluation Reserve (As per 31, 2018 (March 2017 - ` Nil).
Para 44 of AS 10)* 0.0 0.0
Less: Utilised for DTL creation (Refer note (b) 5. Long-Term Borrowings
below) - - (` in million)
Closing balance 249.3 249.3
Particulars Non - Current portion Current Maturities
(ii) Statutory Reserve
(As per Section 29C of National Housing Bank At At At At
Act,1987) (refer note (a) below) March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Opening Balance 4,391.6 4,024.6
Additions during the year 206.0 367.0 [A] Secured
Appropriation during the year - - a) Non-Convertible Debentures /
Closing balance 4,597.6 4,391.6 Bonds (Refer note i below) 4,000.0 8,800.0 4,800.0 1,480.0
(iii) Revaluation Reserve b) Zero Coupon Debentures / Bonds
Opening Balance 229.7 - (Refer note ii below) - - - 1,490.0
Additions during the year 14.8 229.7 Add: Premium accrued on redemption
Less: Transfer to General Reserve (As per Para 44 (net of unamortised discount) - - - 293.7
of AS 10)* (0.0) (0.0) Total[A] 4,000.0 8,800.0 4,800.0 3,263.7
Appropriation during the year - -
Amount disclosed under head ”other
Closing balance 244.5 229.7 current liabilities” (refer Note 10) - - (4,800.0) ( 3,263.7)
(iv) Surplus in the Statement of Profit and Loss
Net Amount 4,000.0 8,800.0 - -
Opening balance 213.6 30.7
[B] Unsecured
Add: Net profit for the year 642.5 1,832.6
Less: Dividend including dividend distribution tax (a) Debenture / Bonds
(Refer Note 3(i)) (595.8) (1,282.7) (refer note iii below)
Less: Transfer to Statutory Reserve (206.0) (367.0) • Debentures / Bond - private
Less: Transfer to General Reserve - - placement 11,790.0 12,990.0 12,250.0 3,200.0
Less: Utilised for DTL creation (Refer note (b) • Debentures / Bond - private
below) - - placement (from related parties) - 1,000.0 1,000.0 -
Closing balance 54.3 213.6 • Debenture / Bond – subordinate
Total Reserves & Surplus 5,145.7 5,084.2 debt private placement 2,070.0 2,573.0 503.0 -
*Amount transferred from Revaluation Reserve to General Reserve is less than ` 0.1 • Debenture / Bonds - ZCB 1,010.0 4,760.0 3,750.0 700.0
million in the years ended March 31, 2018 and March 31, 2017

358
notes
forming part of the accounts Continued

(` in million) ii. Zero Coupon Bonds (ZCB): These bonds are issued at par and redeemable
at premium. The ZCB are secured by way of a pari passu charge on
Particulars Non - Current portion Current Maturities immovable property and hypothecation of loan receivable for upto 1.05
At At At At times the value of the bonds outstanding.
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 The details of secured ZCB are as under:
Add: Premium accrued on redemption
(net of unamortised discount) 196.6 595.1 842.1 112.8 (` in million)
1,206.6 5,355.1 4,592.1 812.8 Description Date of Date of Rate of At At
Allotment Redemption Interest March 31, March 31,
Total (a) 15,066.6 21,918.1 18,345.1 4,012.8 (XIRR) 2018 2017
(b) Term loans
(refer note iii below) Current:

Loan from National Housing Bank 815.9 912.1 72.1 96.7 1,580 ZCB of ` 500,000 each 27-Feb-15 5-Mar-18 8.68% - 790.0
Loans from banks 23,395.1 11,443.9 5,139.4 6,942.2 1,000 ZCB of ` 500,000 each 27-Feb-15 26-Feb-18 8.68% - 500.0
Total (b) 24,211.0 12,356.0 5,211.5 7,038.9
400 ZCB of ` 500,000 each 27-Feb-15 18-Apr-17 8.70% - 200.0
(c) Deposits (refer note v below)
Total - 1,490.0
Fixed deposits including unclaimed
fixed deposits 1,323.6 2,001.2 976.8 779.9 Add: Premium accrued on redemption - 293.7
(net of unamortised discount)
Total (c) 1,323.6 2,001.2 976.8 779.9
(d) Loans and advances from related Total - 1,783.7
parties (refer note iii and vii below)
The details of unsecured NCD / bonds are as under:
Loans from holding company –
other loans - 3,096.0 3,096.0 1,376.0 (` in million)

Total (d) - 3,096.0 3,096.0 1,376.0 Description Date of Date of Rate of At At

Allotment Redemption Interest March 31, March 31,
Total[B=a+b+c+d] 40,601.2 39,371.3 27,629.4 13,207.6 2018 2017
Amount disclosed under head ”other Non Current:
current liabilities”(ref Note 10) - - (27,629.4) (13,207.6)
a)
Net amount 40,601.2 39,371.3 - -
990 NCD's of ` 1,000,000 25-Nov-09 25-Nov-19 9.29% 990.0 990.0
Total = [A] + [B] 44,601.2 48,171.3 - - each
i. 
The Non convertible debentures (NCD) / Bonds are issued with fixed
2070 NCD's of ` 1,000,000 24-Apr-09 24-Apr-19 9.75% 2,070.0 2,070.0
coupon rate and redeemable at par. The NCD / Bonds to the extent of
each
` 8,800.0 million (March 2017 - ` 8,800.0 million) are secured by charge on
the immovable property and negative lien on the assets of the Company. 503 NCD's of ` 1,000,000 23-May-08 23-May-18 9.90% - 503.0
The NCD / Bonds to the extent of ` Nil (March 2017 - ` 3,263.7 million) are each
secured by a pari passu charge on immovable property and hypothecation Total (a) 3,060.0 3,563.0
of loan receivable for upto 1.05 times the value of the NCD / Bonds
b)
outstanding.
4,200 NCD's of ` 500,000 20-Mar-18 27-May-21 8.22% 2,100.0 -
The details of secured NCD / bonds are as under: each
(` in million) 3,100 NCD's of ` 500,000 20-Mar-18 30-Apr-21 8.22% 1,550.0 -
each
Description Date of Date of Rate of At At
Allotment Redemption Interest March 31, March 31, 3,600 NCD's of ` 500,000 30-Aug-17 28-Aug-20 7.36% 1,800.0 -
2018 2017 each
1,000 NCD's of ` 500,000 21-Jul-16 21-Jul-20 8.36% 500.0 500.0
Non Current:
each
a)
1,700 NCD's of ` 500,000 27-Jun-17 26-Jun-20 7.50% 850.0 -
4,000 NCD's of ` 1,000,000 each
each 25-Nov-09 25-Nov-19 9.29% 4,000.0 4,000.0 1,000 NCD's of ` 500,000 20-Jun-16 19-Jun-20 8.53% 500.0 500.0
3,000 NCD's of ` 1,000,000 each
each 18-Mar-09 18-Mar-19 10.75% - 3,000.0 1,000 NCD's of ` 500,000 26-Feb-18 26-Feb-20 8.10% 500.0 -
1,800 NCD's of ` 1,000,000 each
each 23-Sep-08 23-Sep-18 11.35% - 1,800.0 3,000 NCD's of ` 500,000 12-Feb-18 12-Aug-19 8.05% 1,500.0 -
Total (a) 4,000.0 8,800.0 each

Current: 2,000 NCD's of ` 500,000 1-Feb-18 25-Jun-19 8.00% 1,000.0 -

each
b)
1,000 NCD's of ` 500,000 23-Mar-16 23-May-19 8.77% 500.0 500.0
3,000 NCD's of ` 1,000,000 each
each 18-Mar-09 18-Mar-19 10.75% 3,000.0 -
7,000 NCD's of ` 500,000 24-Jun-15 15-Mar-19 8.69% - 3,500.0
1,800 NCD's of ` 1,000,000 each
each 23-Sep-08 23-Sep-18 11.35% 1,800.0 - 500 NCD's of ` 500,000 each 23-Mar-16 21-Dec-18 8.77% - 250.0
Total (b) 4,800.0 - 5,200 NCD's of ` 500,000 23-Feb-17 23-Oct-18 7.65% - 2,600.0
Total (a+b) 8,800.0 8,800.0 each
c) 2,000 NCD's of ` 500,000 14-Mar-17 14-Sep-18 7.48% - 1,000.0
each
1,000 NCD's of ` 500,000
each 13-Nov-14 15-Nov-17 8.80% - 500.0 5,500 NCD's of ` 500,000 16-Aug-16 16-Aug-18 8.00% - 2,750.0
each
1,600 NCD's of ` 500,000
each 31-Oct-14 30-Oct-17 9.05% - 800.0 2,500 NCD's of ` 500,000 27-Jul-16 27-Jul-18 8.25% - 1,250.0
each
360 NCD's of ` 500,000 each 31-Oct-14 3-Oct-17 9.05% - 180.0
300 NCD's of ` 500,000 each 20-Jun-16 20-Jun-18 8.53% - 150.0
Total (c) - 1,480.0
Total (b) 10,800.0 13,000.0
Total (Non Current+Current) 8,800.0 10,280.0
Total (a+b) 13,860.0 16,563.0

359
 notes
forming part of the accounts Continued

(` in million) iii. Terms of redemption of unsecured bonds/debentures and repayment terms of

term loans are as under:
Description Date of Date of Rate of At At
Allotment Redemption Interest March 31, March 31, (` in million)
2018 2017
Maturities 0-1 year 1-3 years 3-5 years 5 years Total
Current: and above
c)
Rates of Interest
503 NCD's of ` 1,000,000 23-May-08 23-May-18 9.90% 503.0 -
each (a) Unsecrued bonds/
debenture
Total (c) 503.0 -
6.50% to 7.99% 5,350.0 2,650.0 - - 8,000.0
d)
(-) (3,600.0) (-) (-) (3,600.0)
7,000 NCD's of ` 500,000 24-Jun-15 15-Mar-19 8.69% 3,500.0 -
each 8.00% to 9.50% 12,492.1 6,696.6 3,650.0 - 22,838.7
500 NCD's of ` 500,000 each 23-Mar-16 21-Dec-18 8.77% 250.0 - (4,012.8) (14,745.1) (1,000.0) (-) (19,757.9)
3,500 NCD's of ` 500,000 31-Jul-17 21-Dec-18 7.17% 1,750.0 - 9.51% to 11.00% 503.0 2,070.0 - - 2,573.0
each
(-) (2,573.0) (-) (-) (2,573.0)
5,200 NCD's of ` 500,000 23-Feb-17 23-Oct-18 7.65% 2,600.0 -
each Total (a) 18,345.1 11,416.6 3,650.0 - 33,411.7
2,000 NCD's of ` 500,000 14-Mar-17 14-Sep-18 7.48% 1,000.0 - (4,012.8) (20,918.1) (1,000.0) (-) (25,930.9)
each (b) Term loans# (including
5,500 NCD's of ` 500,000 16-Aug-16 16-Aug-18 8.00% 2,750.0 - loan from holding company)
each
6.50% to 7.99% 1,684.1 3,508.5 1,413.2 263.6 6,869.4
2,500 NCD's of ` 500,000 27-Jul-16 27-Jul-18 8.25% 1,250.0 -
each (33.9) (67.8) (67.8) (305.1) (474.6)
300 NCD's of ` 500,000 each 20-Jun-16 20-Jun-18 8.53% 150.0 - 8.00% to 9.50% 6,623.4 13,008.0 5,746.5 271.2 25,649.1
1,000 NCD's of ` 500,000 23-Dec-15 22-Dec-17 8.38% - 500.0 (7,631.0) (10,341.4) (3,619.9) (300.0) (21,892.3)
each 9.51% to 11.00% - - - - -
2,000 NCD's of ` 500,000 6-Nov-15 7-Sep-17 8.33% - 1,000.0
(750.0) (750.0) (-) (-) (1,500.0)
each
3,400 NCD's of ` 500,000 6-Nov-15 9-Jun-17 8.33% - 1,700.0 Total (b) 8,307.5 16,516.5 7,159.7 534.8 32,518.5
each (8,414.9) (11,159.2) (3,687.7) (605.1) (23,866.9)
Total (d) 13,250.0 3,200.0 *Figures in bracket pertain to March 31, 2017
Total (c+d) 13,753.0 3,200.0 # Term loans include loan from National Housing Bank of ` 888.0 million (March 2017 -
Total (Non Current+Current) 27,613.0 19,763.0 ` 1,008.8 million)

iv. Rating assigned by Credit Rating Agencies and migration of rating during the year
The details of unsecured ZCB are as under:
Instrument CARE ICRA
(` in million)
Senior Bonds and Subordinated Bonds AAA AAA
Description Date of Date of Rate of At At
Allotment Redemption Interest March 31, March 31, Fixed Deposit AAA (FD) MAAA
(XIRR) 2018 2017 Commercial Paper A1+ A1+
Non Current: Long Term Fund based facilities - AAA
a)
Note 1: In addition to the debt instrument wise specific credit ratings, the
1,500 ZCB of ` 500,000 each 23-Mar-16 15-May-19 8.77% 896.1 823.9 Company has been assigned the Issuer Rating of “Ir AAA” by ICRA for its general
520 ZCB of ` 500,000 each 23-Mar-16 15-Apr-19 8.77% 310.5 285.5 creditworthiness and which is not specific to any particular debt instrument.
720 ZCB of ` 500,000 each 8-Dec-15 17-Dec-18 8.35% - 403.0 Note 2: There has been no migration of rating during the year.
200 ZCB of ` 500,000 each 8-Dec-15 7-Dec-18 8.35% - 111.9
v. Fixed deposits include deposits from corporates ` 255.4 million (March
420 ZCB of ` 500,000 each 27-Nov-15 7-Dec-18 8.35% - 235.6 2017 - ` 325.8 million) and deposits from public ` 2,045.0 million (March
700 ZCB of ` 500,000 each 8-Dec-15 30-Nov-18 8.35% - 391.7 2017 - ` 2,455.3 million) and carry rate of interest in the range of 6.90%
500 ZCB of ` 500,000 each 6-Nov-15 15-Oct-18 8.33% - 281.6 to 9.35% p.a. and having a tenure of 15 to 60 months from the date of
acceptance of deposits. Fixed deposits includes unclaimed fixed deposits
1,140 ZCB of ` 500,000 each 28-Sep-15 27-Sep-18 8.65% - 651.1 from corporates ` 2.0 million (March 2017 - ` 5.3 million) and deposits
820 ZCB of ` 500,000 each 28-Sep-15 13-Sep-18 8.65% - 468.2 from public includes ` 121.1 million (March 2017 - ` 151.8 million). Fixed
2,000 ZCB of ` 500,000 each 24-Jun-15 22-Jun-18 8.69% - 1,167.8 deposits accepted from Directors and their relatives are ` Nil (March 2017
- ` Nil). Floating charge has been created on Government Securities (for
1,000 ZCB of ` 500,000 each 20-Jun-16 20-Jun-18 8.53% - 534.7
statutory liquidity ratio (SLR) purpose) as per NHB Directions.
Total (a) 1,206.6 5,355.1
Concentration of Public Deposits
Current:
(` in million)
b)
Particulars At March 31, At March 31,
720 ZCB of ` 500,000 each 8-Dec-15 17-Dec-18 8.35% 435.6 -
2018 2017
200 ZCB of ` 500,000 each 8-Dec-15 7-Dec-18 8.35% 121.0 -
Total Deposits of twenty largest
420 ZCB of ` 500,000 each 27-Nov-15 7-Dec-18 8.35% 254.7 - depositors 1,162.7 1,282.0
700 ZCB of ` 500,000 each 8-Dec-15 30-Nov-18 8.35% 423.4 - Percentage of Deposits of twenty largest
500 ZCB of ` 500,000 each 6-Nov-15 15-Oct-18 8.33% 304.2 - depositors to Total Deposits 43.4% 39.9%
1,140 ZCB of ` 500,000 each 28-Sep-15 27-Sep-18 8.65% 704.7 -
vi. Loans from related parties carry rate of interest of 8.35% p.a. and tenure
820 ZCB of ` 500,000 each 28-Sep-15 13-Sep-18 8.65% 506.8 - of 104 months from the date of issue and unsecured bonds from related
2,000 ZCB of ` 500,000 each 24-Jun-15 22-Jun-18 8.69% 1,262.5 - parties carry rate of interest of 7.48% p.a. and tenure of 18 months from the
date of issue.
1,000 ZCB of ` 500,000 each 20-Jun-16 20-Jun-18 8.53% 579.2 -
900 ZCB of ` 500,000 each 24-Jun-15 24-Jul-17 8.69% - 522.6
vii. The funds raised by the Company are primarily utilised for core business
purposes i.e. mortgage retail finance and construction finance in addition
500 ZCB of ` 500,000 each 24-Jun-15 23-Jun-17 8.69% - 290.2 to repayment to existing lenders of the Company.
Total (b) 4,592.1 812.8
Total (Non Current+Current) 5,798.7 6,167.9

360
notes
forming part of the accounts Continued
6. Other Long Term Liabilities 9. Trade Payables

(` in million) (` in million)

Particulars At At Particulars At At
March 31, 2018 March 31,2017 March 31, 2018 March 31,2017

(a) Trade payables — — Trade payables

(b) Others (a)Total outstanding dues of Micro and Small

5.6 0.2
Enterprises (Refer Note 9(i) below)
Interest accrued but not due on borrowings –
cumulative fixed deposits 104.8 106.5 (b) Total outstanding dues to creditors other
126.8 87.2
than Micro and Small Enterprises
Total(b) 104.8 106.5
Total(a+b) 132.4 87.4
Total(a+b) 104.8 106.5
(i) Details of dues to Micro and Small Enterprises as per Micro Small and
7. Provisions Medium Enterprises Development Act, 2006
The information as required to be disclosed under the Micro Small and
(` in million)
Medium Enterprises Development Act, 2006 has been determined to the
Long Term Short Term extent such parties have been identified on the basis of information available
Particulars At At At At with the Company. The amount of principal and interest outstanding during
March 31, March 31, March 31, March 31, the year is given below:
2018 2017 2018 2017
(` in million)
(a) Provision for employee benefits
Particulars At At
Provision for Gratuity
March 31, 2018 March 31,2017
(Refer note 21(i) - Balance Sheet) - 1.2 - -
The principal amount and the interest due
Provision for leave encashment
thereon (Interest - March 31, 2018 ` Nil, March
(Refer note 21(i) - Balance Sheet) 11.3 9.1 3.6 3.9 5.6 0.2
31, 2017 ` Nil) remaining unpaid to any supplier
Provision for bonus - - 45.4 33.5 as at the end of each accounting year
Total (a) 11.3 10.3 49.0 37.4 The amount of interest paid by the buyer in terms
of section 16 of the Micro Small and Medium
(b) Others
Enterprise Development Act, 2006 along with
Provision against standard assets 400.6 413.8 65.0 64.3 - -
the amounts of the payment made to the
Provision for sub standard assets - supplier beyond the appointed day during each
Housing loans 260.9 41.1 - - accounting year

Provision for sub standard assets - The amount of interest due and payable for the
Other loans 55.8 42.0 - - period of delay in making payment (which have
been paid but beyond the appointed day during
Provision for doubtful assets - - -
the year) but without adding the interest specified
Housing loans 104.5 47.0 - - under Micro Small and Medium Enterprise
Provision for doubtful assets - Other Development Act, 2006
loans 82.9 109.7 - - The amount of interest accrued and remaining
- -
Provision for loss assets - Housing unpaid at the end of each accounting year; and
loans 259.4 240.5 - - The amount of further interest remaining due and
Provision for loss assets - Other loans 514.4 411.2 - - payable even in the succeeding years, until such
date when the interest dues as above are actually
Provision for others 16.6 28.0 - -
paid to the small enterprise for the purpose of - -
Provision for 1% subsidy on EMI 3.4 5.0 - - disallowance as a deductible expenditure under
Total (b) 1,698.5 1,338.3 65.0 64.3 section 23 of the Micro Small and Medium
Enterprise Development Act, 2006
Total (a+b) 1,709.8 1,348.6 114.0 101.7
The Company has not received any claims against interest outstanding due to
any vendors registered under Micro Small and Medium Enterprise Development
8. Short Term Borrowing
Act, 2006.
(` in million)
10. Other Current Liabilities
Particulars At At
March 31, 2018 March 31,2017 (` in million)
Unsecured Particulars At At
(a) Fixed deposit 136.6 285.8 March 31, 2018 March 31,2017
(b) Commercial paper 3,250.0 7,250.0 (a) 
Current maturities of long term debt (Refer
Note 5)
Less: Unamortised interest (37.3) (130.8)
3,212.7 7,119.2 Secured 4,800.0 3,263.7

(c) Bank Overdraft* Unsecured 27,506.3 13,050.6

(i) From other banks 350.4 500.0 32,306.3 16,314.3
(ii) 
From holding company (including cheques (b) 
Interest accrued but not due on borrowings 1,450.9 1,310.1
issued but not presented) 1,202.1 1,799.5
(c) 
Unclaimed matured deposits and interest
Total(a+b+c) 4,901.9 9,704.5 accrued thereon (Refer Note 5) 141.5 185.7
(i) Fixed deposits includes deposits from corporates ` 9.2 million (March (d) 
Other payable
2017 - ` 22.6 million) and deposits from public ` 127.4 million (March
(i) Provision for tax (Net of advance tax) 14.8 75.2
2017 - ` 263.2 million) and carries interest in the range of 7.05% to
7.55%p.a. with tenure of 12 months from the date of acceptance of (ii) Statutory dues 8.8 2.3
deposits. Fixed deposits accepted from Directors and their relatives are
(iii) Other liabilities 269.2 308.6
` Nil (March 2017 - ` Nil).
292.8 386.1
(ii) Commercial paper carries interest in the range of 6.80% to 7.70% p.a. and
tenure of 90 to 326 days repayable in bullet payment. Total (a+b+c+d) 34,191.5 18,196.1

361
 notes
forming part of the accounts Continued
11. Property, Plant & Equipments (` in million)

Particulars Gross Block Depreciation / Amortisation Net Block

At Additions Deductions At At For the Adjustments/ At At At
April 01, 2017 March 31, 2018 April 01, 2017 period deductions March 31, 2018 March 31, 2018 March 31, 2017
(i) Tangible assets:
Free Hold Land 0.4 - - 0.4 - - - - 0.4 0.4
Office building 853.0 14.8 - 867.8 74.8 14.9 - 89.7 778.1 778.1
Improvement to lease hold property 2.7 - - 2.7 1.9 0.6 - 2.6 0.1 0.8
Computers 28.1 4.6 8.8 23.9 24.1 2.7 7.8 19.0 4.9 4.0
Office equipments* 17.3 2.5 0.0 19.8 4.8 3.6 0.0 8.4 11.4 12.6
Furniture & fixtures* 4.0 0.6 0.0 4.6 1.0 0.4 0.0 1.4 3.2 3.0
Total 905.5 22.5 8.8 919.2 106.6 22.2 7.8 121.1 798.1 798.9
Previous year (March 31, 2017) 662.7 243.8 1.0 905.5 87.3 20.0 0.7 106.6 798.9
(ii) Intangible assets:
Software 38.2 5.0 - 43.2 37.1 1.1 - 38.2 5.0 1.1
Total 38.2 5.0 - 43.2 37.1 1.1 - 38.2 5.0 1.1
Previous year (March 31, 2017) 38.2 - - 38.2 33.8 3.3 - 37.1 1.1

*Amount of deduction is less than ` 0.1 million for the year ended March 31, 2018
1. The Company has Capital work in progress of ` 0.1 million (March 2017 - ` 0.1 million).
2. A negative charge on the Gross block of office building amounting to ` 23.8 million (March 2017 - ` 23.8 million) and pari passu charge on Free Hold land has been created on secured bonds.
3. The Company follows the revaluation model as per AS 10 – Property, Plant and Equipment for its Free Hold Land & Office Building. The Company has revalued its Free Hold Land & Office
Building at March 31, 2018. The revalued amount of the Free Hold Land & Office Building was ` 0.4 million and ` 778.1 million respectively as compared to the historical cost less accumulated
depreciation of ` 0.4 million and ` 763.3 million respectively on the date of revaluation, and accordingly revaluation surplus on Office Building of ` 14.8 million was credited to Revaluation
Reserve. The valuation was carried out by external valuers using methods applicable to the valuation of premises such as direct comparison method.

12. Investments (` in million)

(` in million) Particulars Non-Current Portion Current maturities

Particulars Non-Current Portion Current maturities At At At At

March 31, March 31, March 31, March 31,
At At At At 2018 2017 2018 2017
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 Investment in Mutual Funds - Liquid
Investments (Market value of Mutual
Non-trade investments(valued at Fund ` 210.4 million (March 2017 -
cost unless otherwise stated) ` 420.2 million) - - 210.0 420.0
Investment in government 210.0 420.0
securities - (Quoted)*
Amount disclosed under head "Cash
7.99% GOI-2017 (Face Value - ` Nil, & Cash equivalents" (Refer Note
March 2017 - ` 100.0 million) - - - 100.1 17 A(a)) - - (210.0) (420.0)
8.35% GOI-2022 (Face Value - ` 50.0 - - - -
million, March 2017 - ` 50.0 million) 52.1 52.5 - -
Investments in Security Receipts
7.99% GOI-2017 (Face Value - ` Nil, (SRs) - (Unquoted)
March 2017 - ` 50.0 million) - - - 50.1
2,278,923 (March 2017 - Nil) SRs
8.35% GOI-2022 (Face Value - of Suraksha ARC-014 Trust of face
` 100.0 million, March 2017 - value - ` 1,000 each full paid-up 2,278.9
` 100.0 million) 104.8 105.8 - -
Less: Provision towards interest
7.99% GOI-2017 (Face Value - ` Nil, capitalisation (119.0)
March 2017 - ` 100.0 million) - - - 100.3
Net Book Value 2,159.9 - - -
8.68% JKSDL-2018 (Face Value -
Less: Provision towards SRs as per
` 100.0 million, March 2017 -
RBI Guidelines (Refer note (i) below) (324.0)
` 100.0 million) - 101.1 100.1 -
1,835.9 - - -
7.07% PUN-2020 (Face Value -
` 200.0 million, March 2017 - ` Nil) 200.0 - - - Other Investments - (Unquoted)
356.9 259.4 100.1 250.6 649.24 (March 2017 - 649.24) units
of Emerging India Fund of face value
Investment in equity shares -
` 10,000 each at par 6.5 6.5 - -
(Unquoted)
6.5 6.5 - -
7,340,000 (March 2017 -
7,340,000) Equity shares of Asset Total 2,510.4 809.7 100.1 250.6
Reconstruction Company (India) Aggregate amount of quoted
Limited of face value - ` 10 each investments 356.9 259.4 100.1 250.6
fully paid-up 513.8 513.8 - -
Market value of quoted investments 354.4 262.2 100.4 251.3
Less: Provision towards investment (232.7) - - -
Aggregate amount of unquoted
281.1 513.8 - - investments 2,153.5 550.3 - -
3,000,000 (March 2017 - 3,000,000)
*Floating charge has been created on Government Securities (for statutory
Equity shares of India Infra Debt
Limited of face value - ` 10 each liquidity ratio (SLR) purpose) and includes securities, which are in excess of the
fully paid-up 30.0 30.0 - - minimum SLR requirement as per NHB Directions.
311.1 543.8 - - The Company has created a provision of ` 232.7 million on investment in equity
shares of Asset Reconstruction Company (India) Limited, as the management
believes there is a diminuition, other than temporary, in the value of such
investments (March 2017 - ` Nil).

362
notes
forming part of the accounts Continued
The details of investment in mutual funds are as under: 13. Deferred Tax (net)
The composition of deferred tax assets and liabilities into major items is given below:
(` in million) (` in million)
No. of Units Amount at Particulars At At
Particulars At At At At March 31, March 31,
March 31, March 31, March 31, March 31, 2018 2017
2018 2017 2018 2017 (i) Deferred tax assets on account of:
ICICI Prudential Money Market Fund - Provision for NPAs, Standard assets 576.5 474.0
Direct Plan (Growth) - 889,050.5 - 200.0 Employee Retirement benefits 5.2 4.5
Birla Sun Life Cash Plus - Direct Plan Others 150.7 37.6
(Growth) 358,655.6 842,306.4 100.0 220.0
732.4 516.1
Kotak Floater Short Term - Direct
(ii) Deferred tax liability on account of:
Plan (Growth) 24,584.1 - 70.0 -
Special Reserve created as per section 29C of (1,018.5) (940.7)
Reliance Liquid Fund - Cash Plan -
National Housing Bank Act, 1987 and claimed as
Direct Plan (Growth) 9,450.5 - 40.0 -
deduction u/s 36 (1) (viii) of Income Tax Act, 1961
Total 392,690.2 1,731,356.9 210.0 420.0 Depreciation (92.4) (87.1)
The details of investment in Security Receipts are as under: (1,110.9) (1,027.8)
Net deferred tax asset / (liability) (378.5) (511.7)
(` in million)
14. Loans and Advances
Particulars SRs issued SRs issued more SRs issued
within the past than 5 years ago more than 8 (` in million)
5 years but within the past years ago Long term Short term
8 years Particulars At At At At
Gross Book Value 2,278.9 - - March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Less: Provision towards
interest capitalisation (119.0) - - a. Security Deposits
Unsecured, considered good 4.3 4.7 - -
Net Book Value 2,159.9 - -
Doubtful 2.9 0.6 - -
Less: Provision towards SRs
as per RBI Guidelines (Refer 
Less: Provisions for doubtful
note (i) below) (324.0) - - deposits (2.9) (0.6) - -
4.3 4.7 - -
1,835.9 - -
b. Loans & other credit facilities
(i) The Company has sold certain assets to an Asset Reconstruction Company Housing Loans 52,016.3 48,773.1 4,390.1 5,957.2
(ARC). For the purpose of the valuation of the underlying security receipts Loan against property, Corporate
issued by the underlying trusts managed by the ARC, the SRs have been realty finance and other loans 36,206.7 32,270.5 3,846.0 2,725.5
valued in accordance with RBI Circular RBI/2015- 16/101/DBR.No.BP.
88,223.0 81,043.6 8,236.1 8,682.7
BC.2/21.04.048/2015-16 dated July 01, 2015. Accordingly, the Company
has recorded investment in SRs at ` 2,159.9 million (net of cash received Secured, considered good 84,904.7 79,490.3 8,224.1 8,682.7
` 380.2 million), being lower of Net Book Value (` 2,159.9 million) and Unsecured, considered good 0.5 - 12.0 -
redemption value of the SRs (` 2,278.9 million) at the balance sheet date. Secured, considered doubtful
Also, the Company has recognised a provision of ` 324.0 million on (Non performing assets as per
the above, in accordance with RBI Circular RBI/2016-17/56/DBR.No.BP. NHB guidelines) 3,317.8 1,553.3 - -
BC.9/21.04.048/2016-17 dated September 01, 2016. 88,223.0 81,043.6 8,236.1 8,682.7
Additional disclosure as per NHB Notification-No.-NHB.HFC.CG-DIR.1- c. Advance tax (net of provision
MD&CEO-2016 dated February 9, 2017 is as under: for taxation) 474.8 435.4 - -
d. Others - - 40.3 21.5
(` in million) Total:- (a+b+c+d) 88,702.1 81,483.7 8,276.4 8,704.2
Particulars At At
March 31, March 31, 2017 
Additional disclosure as per NHB Notification-No.-NHB.HFC.CG-DIR.1-
2018 MD&CEO-2016 dated February 9, 2017 is as under:
Value of Investments
i) Break up of Loan & Advances and Provisions thereon
(i) Gross value of Investments 3,496.2 1,480.3
(a) In India (includes Investment in Mutual 3,496.2 1,480.3
Funds ` 210.0 million (March 2017 - (` in million)
` 420.0 million) (Refer Note 17) Housing Non-Housing
(b) Outside India - - Particulars At At At At
(ii) Provisions for Depreciation (675.6) - March 31, March 31, March 31, March 31,
(a) In India (675.6) - 2018 2017 2018 2017
(b) Outside India - - Standard Assets
(iii) Net value of Investments 2,820.6 1,480.3 a) Total Outstanding Amount 54,519.7 54,446.5 39,228.6 34,320.3
(a) In India 2,820.6 1,480.3 b) Provisions made 242.9 266.5 222.6 211.6
(b) Outside India - - Sub-Standard Assets
Movement of provisions held towards depreciation
a) Total Outstanding Amount 1,728.0 273.8 369.9 280.1
on investments
(i) Opening balance - - b) Provisions made 261.0 41.1 55.8 42.0

(ii) Add: Provisions made during the year 675.6 - Doubtful Assets – Category-I
(iii) Less: Write-off / Written-back of excess - - a) Total Outstanding Amount 170.9 95.3 144.6 93.1
provisions during the year b) Provisions made 63.2 31.3 50.5 29.3
(iv) Closing balance 675.6 -
Doubtful Assets – Category-II
a) Total Outstanding Amount 70.3 24.3 60.4 135.0
b) Provisions made 41.2 15.7 32.4 80.4
Doubtful Assets – Category-III
a) Total Outstanding Amount - - - -
b) Provisions made - - - -
363
 notes
forming part of the accounts Continued

(` in million) vii) Movement of NPAs

Housing Non-Housing
(` in million)
Particulars At At At At
Particulars At At
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 March 31,2018 March 31, 2017
Loss Assets (I) Net NPAs to Net Advances (%) 2.13% 0.74%
a) Total Outstanding Amount 259.4 240.5 514.4 411.2 (II) Movement of NPAs (Gross)
b) Provisions made 259.4 240.5 514.4 411.2 a) Opening balance 1,553.3 1,415.7
TOTAL b) Additions during the year 5,116.7 512.5
a) Total Outstanding Amount* 56,748.2 55,080.4 40,317.9 35,239.7 c) Reductions during the year (3,352.1) (374.9)
b) Provisions made 867.7 595.1 875.8 774.5 d) Closing balance 3,317.8 1,553.3

*The total outstanding amount above includes interest accrued but not due on loans (III) Movement of Net NPAs
amounting to ` 607.1 million (March 2017 - ` 593.8 million) (Refer Note 16 - Other Assets) a) Opening balance 661.9 521.3
b) Additions during the year 4,165.7 435.5
ii) 
Details of Financial Assets sold to Reconstruction Company for Asset
Reconstruction c) Reductions during the year (2,787.6) (294.9)
d) Closing balance 2,039.9 661.9
(` in million) (IV) Movement of provisions for NPAs (excluding
Particulars At At provisions on standard assets)
March 31,2018 March 31, 2017 a) Opening balance 891.4 894.4
(i) No. of accounts 3 - b) Provisions made during the year 951.0 77.0
(ii) 
Aggregate value (net of provisions) of 2,680.1 - c) Write-off/write-back of excess provisions (564.5) (80.0)
accounts sold to ARC d) Closing balance 1,277.9 891.4
(iii) Aggregate consideration 2,680.1 -
Notes:
(iv) 
Additional consideration realised in respect of - -
accounts transferred in earlier years (i) Loans given by the Company are secured by the underlying property or
security, except unsecured loans as disclosed in Note 14(b).
(v) 
Aggregate gain / (loss) over net book value - -
(ii) Loan and other credit facilities include loan of ` 812.0 million (March 2017
iii) Concentration of Loans & Advances - ` Nil) which is secured by way of capital market exposure.
(iii) The Company has not sponsored any SPVs during the current and previous
(` in million) year, and there is no outstanding amount of securitised assets as a result of
Particulars At At any such sponsorships.
March 31,2018 March 31, 2017 (iv) The Company has not entered into any Assignment transactions in the
current and previous year.
Total Loans & Advances to twenty largest 8,998.5 12,855.9
borrowers (v) The Company has not purchased / sold non-performing financial assets
Percentage of Loans & Advances of twenty largest 9.3% 14.2% from other HFCs in the current and previous year.
borrowers to total advances (vi) There is no financing of the parent company’s products during the current
year and previous year.
iv) Concentration of all Exposure (including off-balance sheet exposure) (vii) The Company has not exceeded the Single Borrower Limit and Group
Borrower Limit as set by NHB.
(` in million)
Particulars At At 15. Trade Receivable
March 31,2018 March 31, 2017 (` in million)
Total Exposure to twenty largest borrowers / 9,664.4 13,365.3 Current
customers
Particulars At At
Percentage of Exposures of twenty largest borrowers 9.5% 14.3% March 31, March 31, 2017
/ customers to total exposure on borrowers / 2018
customers
Other receivable
v) Concentration of NPAs Trade Receivables - Unsecured, considered good
less than six months 26.1 4.1
(` in million)
Less: Provisions for doubtful trade receivables - -
Particulars At At
March 31,2018 March 31, 2017 Total 26.1 4.1
Total exposure to top ten NPA accounts 1,666.2 239.1 Trade receivable includes ` 15.6 million (March 2017 ` 3.0 million) from related
parties
vi) Sector-wise NPAs
16. Other Assets
(` in million)
(` in million)
Sector (Percentage of NPAs to Total Advances At At
in that sector) Non - Current Current
March 31,2018 March 31, 2017
Particulars At At At At
A. Housing Loans:
March 31, March 31, March 31, March 31,
1. Individuals 1.4% 1.3% 2018 2017 2018 2017
2. Builders/Project Loans 27.0% - (i) Advances recoverable
3. Corporates 6.8% 5.5% Unsecured, considered good
 - - 7.2 8.5
4. Others - - Doubtful 0.1 0.1 - -
B. Non-Housing Loans: Less: Provisions for doubtful
advances (0.1) (0.1) - -
1. Individuals 3.0% 3.1%
- - 7.2 8.5
2. Builders/Project Loans - -
3. Corporates 3.1% 3.1%
4. Others - -

364
notes
forming part of the accounts Continued

(` in million) 20. Finance Cost

Non - Current Current (` in million)

Particulars Year ended Year ended
Particulars At At At At
March 31, 2018 March 31, 2017
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 (a) Interest expense on:
(ii) Interest accrued but not due Loans (Refer Note (i) below) 2,137.3 2,377.2
on loans - - 607.1 593.8 Commercial paper (Discount charges) 541.9 475.4
(iii) Interest accrued on Fixed Fixed Deposits 231.1 261.7
Deposits* - - 0.0 - Bonds 3,304.2 3,493.5
(iv) Interest accrued on 6,214.5 6,607.8
Government securities - - 11.4 12.3
(b) Other charges
(v) Bank deposits with original Brokerage on fixed deposits 1.7 13.1
maturity for more than 12
months 2.5 - - - Bank charges 2.7 1.0
(vi) Gratuity asset 4.9 - - - Other financial charges 44.1 38.1
48.5 52.2
(vii) Others 45.6 - 19.5 17.1
Total (a+b) 6,263.0 6,660.0
Total 53.0 - 645.2 631.7
(i) Interest expense (net) includes ` (41.6) million (March 2017 - ` (4.1) million)
*Amount is less than ` 0.1 million for the year ended March 31, 2018 under Loans from banks being interest expenses / (income) booked on the
Interest Rate Swaps (IRS). The notional principal of hedge IRS is ` 5,500.0
17. Cash and Bank Balances million (March 2017 - ` 5,500.0 million). During the year, the Company
(` in million) has entered into Interest Rate Swap (IRS) transactions amounting to ` Nil
(March 2017 - ` Nil).
Particulars Current portion
At At Disclosure on Risk Exposure in Interest Rate Swap
March 31, March 31, 2017
2018 (` in million)
A. Cash & cash equivalents Particulars Year ended Year ended
Investments in mutual funds (Liquid Plan)
a.  March 31, 2018 March 31, 2017
(Refer Note 12) 210.0 420.0 (i) The notional principal of swap agreements 5,500.0 5,500.0
b. Investments redemption receivable 880.0 790.0 (ii) Losses which would be incurred if
c. Balances with banks 60.8 405.4 counterparties failed to fulfil their
Total (A) 1,150.8 1,615.4 obligations under the agreements - -

B. Other bank balances - - (iii) Collateral required by the HFC upon

entering into swaps - -
Total (B) - -
(iv) Concentration of credit risk arising from the
Total (A) + (B) 1,150.8 1,615.4 swap $ - -

18. Revenue from operations (v) The fair value of the swap book # 30.8 64.4

Note: Nature and terms of the swaps including information on credit and market
(` in million)
risk and the accounting policies adopted for recording the swaps
Particulars Year ended Year ended
$ Examples of concentration could be exposures to particular industries or
March 31,2018 March 31, 2017 swaps with highly geared companies.
Interest income on loans 9,116.9 9,686.4 # If the swaps are linked to specific assets, liabilities, or commitments, the fair
value would be the estimated amount that the HFC would receive or pay to
Other operating income
terminate the swap agreements as on the balance sheet date.
Fee income (Refer note (a) below) 374.7 348.7
(` in million)
Other interest income received (Includes 34.1 63.5
` Nil (March 2017 - ` 0.8 million) in respect of Particulars Year ended Year ended
investments held as current investments) March 31, 2018 March 31, 2017

Profit on sale of liquid mutual fund units on 6.2 24.7 (i) Derivatives (Notional Principal Amount) 5,500.0 5,500.0
current investment (ii) Marked to Market Positions 30.8 64.4
Profit on sale of GOI securities - 1.1 (a) Assets (+) 30.8 64.4
(Includes ` Nil (March 2017 - ` Nil) in respect of (b) Liability (-) - -
investments held as current investments)
(iii) Credit Exposure - -
Dividend income on current investment 37.4 92.6
(iv) Unhedged Exposures - -
Total 9,569.3 10,617.0
Reporting on derivatives forms an integral part of the management information
Note (a) Pursuant to NHB Circular NHB (ND)/DRS/Policy Circular No. 71/2014-15 dated system. The use of derivatives for hedging purposes is governed by the
April 22, 2015, fee income includes ` 36.1 million (March 2017 - ` 24.2 million) towards derivatives policy approved by Asset Liability Management Committee (ALCO).
insurance agency business. The Company identifies the hedged item (asset or liability) at the inception of
the hedge itself. The effectiveness is assessed at the time of inception of the
19. Other Income hedge and periodically thereafter. Hedging is primarily undertaken to offset the
fluctuations in the fair value of a hedged item and hence effectiveness of any
(` in million)
hedge is determined by comparing the fluctuation in the fair value of the hedged
Particulars Year ended Year ended item with that of the hedging instrument used. To test the hedge effectiveness of
March 31, 2018 March 31, 2017 the swap transaction, the floating leg is valued basis INBMK rates while the fixed
Dividend income (Equity Shares) 0.9 - leg is valued basis constant spread method.

Rent income 43.2 40.5 Dealing in derivatives is carried out by identified groups in the treasury of the
Company based on the purpose of the transaction. Derivative transactions
Miscellaneous income 30.9 0.8 are entered into by the treasury front office. Risk Management Group and
Total 75.0 41.3 Operations conducts an independent check of the transactions entered into by
the front office and also undertakes activities such as confirmation, settlement,
accounting, risk monitoring and reporting and ensures compliance with various
internal and regulatory guidelines.

365
 notes
forming part of the accounts Continued
Currency Derivatives Changes in the present value of the defined benefit obligation are as follows:
The Company does not have any Currency Derivatives in the current and Gratuity (` in million)
previous year. Particulars Year ended Year ended
March 31, 2018 March 31, 2017
Forward Rate Agreement (FRA)
Opening defined benefit obligation 40.9 43.8
The Company has not entered into any Forward Rate Agreement in the current
Interest cost 3.0 3.7
and previous year.
Current service cost 5.4 6.5
Exchange Traded Interest Rate (IR) Derivative Benefits paid (8.4) (2.8)
The Company does not have any Exchange Traded Interest Rate Derivatives in Actuarial (gains) / losses on obligation (1.0) (2.3)
the current and previous year. Liabilities assumed on acquisition / (Settled on
divestiture) 13.6 (8.0)
21. Employee Benefit Expenses Closing defined benefit obligation 53.6 40.9
(` in million)
Changes in the fair value of plan assets are as follows:
Particulars Year ended Year ended
March 31, 2018 March 31, 2017 Gratuity (` in million)
Salaries, wages and bonus 315.9 323.7 Particulars Year ended Year ended
March 31, 2018 March 31, 2017
Contribution to gratuity, provident fund and
other funds 20.5 19.9 Opening fair value of plan assets 39.7 41.0
Expected return on plan assets 3.0 3.0
Staff welfare expenses 6.1 7.5
Contributions by employer 10.2 6.6
Total 342.5 351.1
Benefits paid (8.4) (2.8)
(i) The Company has been providing for gratuity and leave encashment based Actuarial gains / (losses) 0.3 (0.1)
on actuarial valuation as per the Accounting Standard on Accounting
Assets acquired on acquisition / (Distributed on
for Retirement Benefits (AS-15 revised). Accordingly, the Company has
divestiture) 13.6 (8.0)
provided for gratuity and leave encashment based on actuarial valuation
Closing fair value of plan assets 58.5 39.7
done as per Projected Unit Credit Method and Projected Accrued Benefit
Method respectively. Expected employer’s contribution next year - -

The Company has a defined benefit gratuity plan. The scheme is funded with an The major categories of plan assets as a percentage of the fair value of total plan
insurance company in the form of a qualifying insurance policy. assets are as follows:

The Company has also provided leave benefits to the employees. These Gratuity (%)
benefits are unfunded. Particulars At At
March 31, 2018 March 31,2017
The following tables summaries the components of net benefit expense
recognised in the statement of Profit and Loss and the funded status and Investments with insurer managed funds 100% 100%
amounts recognised in the Balance Sheet for the respective plans.
The principal assumptions used in determining gratuity obligations for the Company’s
Statement of Profit and Loss:
plans are shown below:
Net employee benefits expenses (recognised in employee cost):
Gratuity (%) Leave Encashment (%)
Gratuity (` in million) Particulars At At At At
Particulars Year ended Year ended March 31, March 31, March 31, March 31,
March 31, 2018 March 31, 2017 2018 2017 2018 2017
Current service cost 5.4 6.6 Discount rate 7.60% 6.75% 7.60% 6.75%
Expected rate of return on assets 8.00% 8.00% - -
Interest on defined benefit obligation 3.0 3.8
Increase in compensation cost 7.00% 7.00% 7.00% 7.00%
Expected return on plan assets (3.0) (3.1)
Net actuarial (gains) / losses recognised in the year (1.3) (2.3) Discount rate:
Effect of the limit in Para 59(b) - - The discount rate is based on the prevailing market yields of Indian government
securities at the balance sheet date for the estimated term of the obligations.
Net employee benefits expenses 4.1 5.0
Actual return on plan assets 3.3 3.0 Expected rate of return on plan assets:
This is based on Actuary expectation of the average long-term rate of return
Balance Sheet: expected on investments of the fund during the estimated term of the
Details of provision for gratuity and leave encashment: obligations.
Gratuity Leave Encashment
Salary escalation rate:
(` in million) (` in million)
The estimate of future salary increases considered takes into account the
Particulars At At At At
March 31, March 31, March 31, March 31, inflation, seniority, promotion and other relevant factors.
2018 2017 2018 2017
Retirement age:
Present value of funded 53.6 40.9 15.0* 13.0*
obligations The employees of the Company are assumed to retire at the age of 58 years.
Fair value of plan assets (58.5) (39.7) - -
Leaving service:
Amount not recognised as an - - - -
Asset (Limit in Para 59 (b)) Rates of leaving service at specimen ages are as shown below:
Net liability / (asset) (4.9) 1.2 15.0 13.0 Age (Years) Rate
Less: Unrecognised past - - - - 21 - 24 39%
service cost
25 - 29 24%
Liability / (Asset) (4.9) 1.2 15.0 13.0
30 - 34 14%
* Includes short term leave encashment provision of ` 3.6 million (March 2017 - ` 3.8 million) 35 - 44 10%
45 and 57 5%

Disability:
Leaving service due to disability is included in the provision made for all causes of
leaving service.

366
notes
forming part of the accounts Continued
EXPERIENCE ADJUSTMENTS (iii) The details of amounts spent towards CSR are as under:

Gratuity (` in million)
a) Gross amount required to be spent by the 57.7
At March At March At March At March At March Company during the year
Particulars
31, 2018 31, 2017 31, 2016 31, 2015 31, 2014
Defined benefit obligation 53.6 40.9 43.8 39.4 27.4 b) Amount spent during the year on: In cash Yet to be paid in
cash
Plan assets 58.5 39.7 41.0 36.2 33.4
Surplus / (deficit) 4.9 (1.2) (2.8) (3.2) 6.0 (i) Construction / acquisition of any asset - -
Experience adjustments on plan (ii) On purposes other than (i) above* 57.7 -
liabilities 2.4 (5.5) (1.2) 2.0 0.9 Total 57.7 -
Experience adjustments on plan
assets 0.3 (0.0) 2.4 1.2 (0.8) *The Company has partnered ICICI Foundation for Inclusive Growth to support
the cause of elementary education, primary health, sustainable livelihood and
skill development.
Leave Encashment (` in million)
At At 23. Provision / write offs (net)
Particulars
March 31, 2018 March 31, 2017
(` in million)
Defined benefit obligation* 15.0 13.0
Break up of 'Provisions and Contingencies' Year ended Year ended
Experience adjustments on plan liabilities Not determined Not determined shown under the head Expenditure in March 31,2018 March 31,2017
* Includes short term leave encashment provision of ` 3.6 million (March 2017 - ` 3.8 million) Statement of Profit and Loss
1. Provisions towards investment in SRs 324.0 -
22. Establishment and Other Expenses
2. Provision towards NPA 386.5 (2.9)
(` in million)
Particulars Year ended Year ended 3. Provision for Standard Assets (12.6) (29.7)
March 31,2018 March 31,2017 - HL to Individuals 16.1 15.8
Advertisement and sales promotion 11.5 5.7 - HL to Others (0.3) (0.0)
Customer acquisition cost 235.4 196.4
- Teaser Loans (1.1) (11.0)
Professional and legal charges 378.5 305.8
Rent 30.2 24.3 - CRE-RH Loans (117.9) (19.7)
Communication 5.1 4.6 - CRE - Other Loans 65.2 (30.5)
Travelling and conveyance 20.6 25.7 - Other Loans 25.4 15.7
Loss on sale of fixed assets / written off* 0.0 0.0
4. Other Provisions 238.3 (4.5)
Printing and stationery 6.4 5.2
Audit fees (Refer note 22(i) below) 6.8 6.8 Total* 936.2 (37.1)
Insurance 9.3 11.2 - Provision made towards Income Tax** 610.0 828.0
Electricity 12.1 12.8 *Refer item IV of Statement of Profit & Loss (Provision / write offs - Net)
Rates & taxes 69.6 54.5
**Refer item X of Statement of Profit & Loss (Tax expenses - Current tax)
Repairs and maintenance – Building 19.9 16.3
Repairs and maintenance – IT Software & Others 43.8 64.1 24. Earnings Per Share
Office expenses 13.0 9.8 The computation of earning per share is given below:
Directors sitting fees 1.8 2.1
(` in million)
CSR expenditures (Refer note 22(iii) below) 57.7 59.5
Directors commission 2.3 2.3 Particulars Year ended Year ended
Computer consumable 2.2 1.1 March 31,2018 March 31,2017
Loss on revaluation of fixed assets - 0.3 Basic and Diluted
Channel partner expenses (property services) 42.3 86.6 Weighted average number of equity shares
Miscellaneous expenses 10.9 9.7 outstanding during the period ended March 31,
Total 979.4 904.8 2018 (Nos.) 1,098,750,000 1,098,750,000

*Amount is less than ` 0.1 million for the years ended March 31, 2018 and Net profit (net of preference dividend and the
March 31, 2017 dividend tax) 642.5 1,832.6
Basic earnings per share (`) 0.58 1.67
(i) Auditor’s remuneration (excluding service tax):
25. Segment Information
(` in million)
The Company is engaged in the business of providing loans for purchase, construction,
Particulars Year ended Year ended
repairs and renovation etc., of houses / flats to individuals, corporate bodies, builders,
March 31,2018 March 31,2017 co-operative housing societies and provides housing business related services i.e.
Statutory audit fees 4.3 3.5 property advisory & research services and Legal & technical valuation services and also
Tax audit fees 0.4 0.4 Company has its operations within India. There being only one ‘business segment’ and
Certification and other charges 2.1 2.9 ‘geographical segment’, the segment information is not provided.
Total 6.8 6.8
26. Related Party Disclosure
(ii) The Company has recovered the following common expenses (as per the Names of related parties and related party relationship as per Accounting Standard – AS 18.
sharing arrangement) from the holding company:
Sr. Nature of
(` in million) Name of the Related Party
No. Relationship
Particulars Year ended Year ended
March 31,2018 March 31,2017 1 ICICI Bank Limited Holding Company
Rent & electricity 6.9 11.5 2 ICICI Securities Limited Fellow Subsidiary/
Rates and taxes 2.1 3.8 Fellow Entity
Repairs and maintenance – others 9.5 6.0 3 ICICI Securities Primary Dealership Limited Fellow Subsidiary/
Miscellaneous expenses 1.1 5.2 Fellow Entity
19.5 26.5 4 ICICI Prudential Life Insurance Company Limited Fellow Subsidiary/
Goods & Service Tax / Service tax 3.5 4.0 Fellow Entity
Total 23.1 30.5 5 ICICI Lombard General Insurance Company Limited Fellow Subsidiary/
Fellow Entity
Note: Expenses recovery from the holding company is recognised as per the
6 ICICI Securities Inc. Fellow Subsidiary/
sharing arrangement
Fellow Entity

367
 notes
forming part of the accounts Continued

Sr. Nature of The following are the details of transactions with related parties: (` in million)
Name of the Related Party
No. Relationship Particulars Holding Fellow Key Total
7 ICICI Securities Holdings Inc. Fellow Subsidiary/ Company Subsidiary Management
Fellow Entity / Associate Personnel
Company
8 ICICI Venture Funds Management Company Limited Fellow Subsidiary/
Fellow Entity Other fee income - 36.1 - 36.1

9 ICICI Trusteeship Services Limited Fellow Subsidiary/ (-) (24.2) (-) (24.2)
Fellow Entity Interest on fixed deposit* 0.0 - - 0.0
10 ICICI Investment Management Company Limited Fellow Subsidiary/ (0.8) (-) (-) (0.8)
Fellow Entity
Servicing fee 0.1 - - 0.1
11 ICICI International Limited Fellow Subsidiary/
(0.1) (-) (-) (0.1)
Fellow Entity
Rent received 43.2 - - 43.2
12 ICICI Bank UK PLC Fellow Subsidiary/
Fellow Entity (40.5) (-) (-) (40.5)
13 ICICI Bank Canada Fellow Subsidiary/ Expense recovery 19.5 - - 19.5
Fellow Entity (26.5) (-) (-) (26.5)
14 ICICI Strategic Investments Fund Fellow Subsidiary/ MTM gain on swap Deals 30.8 - - 30.8
Fellow Entity
(-) (-) (-) (-)
15 ICICI Prudential Asset Management Company Limited Fellow Subsidiary/
Fellow Entity EXPENDITURE
16 ICICI Prudential Trust Limited Fellow Subsidiary/ Interest & other finance expenses 328.0 74.8 - 402.8
Fellow Entity (554.1) (3.1) (-) (557.3)
17 ICICI Prudential Pension Funds Management Company Fellow Subsidiary/ DMA commission 20.1 1.9 - 22.1
Limited Fellow Entity
(15.2) (5.7) (-) (20.8)
18 Rohit Salhotra, Managing Director and CEO Key Management
(Up to October 31, 2017) Personnel Collection cost 233.3 - - 233.3

19
Anirudh Kamani, Managing Director and CEO Key Management (178.3) (-) (-) (178.3)
(w.e.f. November 1, 2017) Personnel Travel cost 20.4 - - 20.4

(25.1) (-) (-) (25.1)

The following are the details of transactions with related parties: (` in million) IT Infrastructure cost (shared 48.0 - - 48.0
expenses)
Particulars Holding Fellow Key Total
Company Subsidiary Management (68.1) (-) (-) (68.1)
/ Associate Personnel Fee Expenses 18.2 0.3 - 18.5
Company
(24.1) (23.0) (-) (47.1)
ASSETS
Remuneration to KMP's - - 18.5 18.5
Bank balance (Including fixed 47.6 - - 47.6
(-) (-) (10.5) (10.5)
deposit and interest accrued
(402.5) (-) (-) (402.5)
thereon) Insurance premium - 9.3 - 9.3
Fee receivable - 15.6 - 15.6 (-) (11.3) (-) (11.3)
(1.4) (1.7) (-) (3.1) Rent paid 4.3 19.6 - 23.9
Other receivable 50.7 - - 50.7 (4.2) (18.6) (-) (22.8)
(26.4) (-) (-) (26.4) Servicing fee 4.8 - - 4.8
MTM gain on swap deals 30.8 - - 30.8 (6.2) (-) (-) (6.2)
(-) (-) (-) (-) Miscellaneous 75.5 0.2 - 75.7
LIABILITIES (72.9) (0.3) (-) (73.2)
Equity share capital 10,987.5 - - 10,987.5 OTHERS
(10,987.5) (-) (-) (10,987.5) Swap (notional principal) 5,500.0 - - 5,500.0
Loan 3,096.0 - - 3,096.0 (5,500.0) (-) (-) (5,500.0)
(4,472.0) (-) (-) (4,472.0) Letter of comfort (utilised) 12,363.0 - - 12,363.0
Fee payable 5.7 0.3 - 6.0 (12,363.0) (-) (-) (12,363.0)
(6.9) (5.9) (-) (12.8) Guarantee 2.5 - - 2.5
Bonds - 1,000.0 - 1,000.0 (-) - (-) (-)
(-) (1,000.0) (-) (1,000.0) Bank loan repaid during the period 1,376.0 - - 1,376.0
Bank overdraft 1,202.1 - - 1,202.1 (1,376.0) (-) (-) (1,376.0)
(266.6) (-) (-) (266.6) FD placed during the period - - - -
Book overdraft 70.2 - - 70.2 (750.0) (-) (-) (750.0)
(1,551.8) (-) (-) (1,551.8) Sale of fixed assets 1.1 - - 1.1
Accrued interest on bond - 40.8 - 40.8 (-) (-) (-) (-)
(-) (3.7) (-) (3.7) Sale of bond - 250.0 - 250.0
Amount payable (including on 37.9 5.9 - 43.8 (-) (50.0) (-) (50.0)
account of expenses) Equity dividend 495.0 - - 495.0
(27.3) (5.9) (-) (33.2) (1,065.8) (-) (-) (1,065.8)
INCOME
*Figures in bracket pertain to March 31, 2017
Valuation fee (0.2) - - (0.2)
*Amount is less than ` 0.1 million for the year ended March 31, 2018
(343.6) (-) (-) (343.6)
PSG fee 3.5 - - 3.5
(3.4) (-) (-) (3.4)

368
notes
forming part of the accounts Continued
Related party transaction which are in excess of 10% of the total related party
transactions of similar nature are given below: (` in million)

(` in million) Particulars Name of the Related At At

Party March 31, 2018 March 31, 2017
Particulars Name of the Related At At
Party March 31, 2018 March 31, 2017 ICICI Prudential Life 74.8 -
Insurance Company
Bank balance (Including ICICI Bank Limited 47.6 402.5 Limited
fixed deposit and interest
accrued thereon) DMA commission ICICI Bank Limited 20.1 13.0

Fee receivable ICICI Bank Limited - 1.4 Fee expenses ICICI Bank Limited 18.2 24.1

ICICI Lombard General 14.6 1.7 ICICI Securities Limited - 23.0

Insurance Company
Insurance premium ICICI Lombard General 9.3 11.3
Limited
Insurance Company
Other receivable ICICI Bank Limited 50.7 26.4 Limited

MTM gain on swap deals ICICI Bank Limited 30.8 - Rent paid ICICI Bank Limited 4.3 4.2

LIABILITIES ICICI Lombard General 17.2 16.5

Insurance Company
Equity share capital ICICI Bank Limited 10,987.5 10,987.5 Limited

Loan from holding ICICI Bank Limited 3,096.0 4,472.0 ICICI Prudential Life 2.4 -
company Insurance Company
Limited
Bonds ICICI Prudential Life 1,000.0 1,000.0
Insurance Company Servicing fee ICICI Bank Limited 4.8 6.2
Limited
Collection cost ICICI Bank Limited 233.3 178.3
Bank overdraft ICICI Bank Limited 1,202.1 266.6
Travel cost ICICI Bank Limited 20.4 25.1
Book overdraft ICICI Bank Limited 70.2 1,551.8
IT Infrastructure cost ICICI Bank Limited 48.0 68.1
Accrued interest on bond ICICI Prudential Life 40.8 3.7 (shared expenses)
Insurance Company
Limited Remuneration to KMP's Rohit Salhotra (Up to 8.9 10.5
October 31, 2017)
Fee Payable ICICI Bank Limited 5.7 6.9
Anirudh Kamani (w.e.f. 9.6 -
ICICI Securities Limited - 5.9 November 1, 2017)

Amount payable ICICI Bank Limited 37.9 27.3 Miscellaneous ICICI Bank Limited 75.5 72.9
(including on account of
expenses) OTHERS

ICICI Lombard General 5.9 5.5 Swap (notional principal) ICICI Bank Limited 5,500.0 5,500.0
Insurance Company
Letter of comfort (utilised) ICICI Bank Limited 12,363.0 12,363.0
Limited
Guarantee ICICI Bank Limited 2.5 -
INCOME
Bank loan repaid during ICICI Bank Limited 1,376.0 1,376.0
PSG fee ICICI Bank Limited 3.5 3.4
the period
Valuation fee ICICI Bank Limited (0.2) 343.6
FD placed during the ICICI Bank Limited - 750.0
MTM Gain on swap Deals ICICI Bank Limited 30.8 - period

Other fee income ICICI Lombard General 24.5 22.2 Sale of assets ICICI Bank Limited 1.1 -
Insurance Company
Sale of bond ICICI Securities Primary 250.0 50.0
Limited
Dealership Limited
ICICI Prudential Life 11.6 -
Equity dividend ICICI Bank Limited 495.0 1,065.8
Insurance Company
Limited
27. Additional disclosures as per NHB circular no. NHB/ND/DRS/Pol-No. 35/2010-2011
Interest on fixed deposit* ICICI Bank Limited 0.0 0.8 dated October 11, 2010, NHB Notification-No.-NHB.HFC.CG-DIR.1-MD&CEO-2016
dated February 9, 2017 and MCA Notification No. GSR 308(E) [F.NO.17/62/2015-CL-V-
Rent received ICICI Bank Limited 43.2 40.5 (VOL.I)], dated March 30, 2017 are as under:

Expense recovery ICICI Bank Limited 19.5 26.5 (i) Capital to Risk Assets Ratio (CRAR)
Servicing fee ICICI Bank Limited 0.1 0.1
Sr. Items Year ended Year ended
Figures in bracket pertain No. March 31,2018 March 31,2017
to March 31, 2017 1) CRAR % 23.84% 26.96%
*Amount is less than ` 0.1 million for the year ended March 31, 2018 2) CRAR - Tier I capital % 22.44% 24.61%
3) CRAR - Tier II capital % 1.40% 2.35%
(` in million)
4) Amount of subordinated debt raised as
Particulars Name of the Related At At Tier-II Capital - -
Party March 31, 2018 March 31, 2017
5) Amount raised by issue of Perpetual Debt
EXPENDITURE Instruments - -

Interest & other finance ICICI Bank Limited 328.0 556.3

expenses

369
 notes
forming part of the accounts Continued
(ii) Exposure to Real estate sector
(` in million)
Particulars Year ended Year ended
March 31,2018 March 31,2017
a) Direct exposure
i) Residential mortgages
Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented. (Individual Housing Loans
up to ` 15 Lakhs – March 2018 - ` 18,670.2 million, March 2017 - ` 16,881.0 million) 78,967.9 69,345.4
ii) Commercial real estate
Lending fully secured by mortgages on commercial real estates (office buildings, retail space multipurpose commercial premises, multi family
residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development & construction
etc). Exposure would also include non-fund based (NFB) limits. 16,666.8 20,380.9
iii) Investments in mortgage backed securities (MBS) & other securitised exposures
a) Residential - -
b) Commercial real estate - -
iv) Others (These contains exposures not covered above) - -
b) Indirect exposure
Fund based & non fund based exposures on National Housing Bank (NHB) & Housing Finance Companies (HFC's) - -

(iii) Exposure to Capital Market

(` in million)
Particulars Year ended Year ended
March 31,2018 March 31,2017
(i) direct investment in equity shares, convertible bonds, convertible debentures and units of equity oriented mutual funds the corpus of which
is not exclusively invested in corporate debt; 543.8 543.8
(ii) advances against shares / bonds /debentures or other securities or on clean basis to individuals for investment in shares (including IPOs /
ESOPs), convertible bonds, convertible debentures, and units of equity-oriented mutual funds; - -
(iii) advances for any other purposes where shares or convertible bonds or convertible debentures or units of equity oriented mutual funds are
taken as primary security; 1,104.2 -
(iv) advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or
units of equity oriented mutual funds i.e. where the primary security other than shares / convertible bonds / convertible debentures / units of
equity oriented mutual funds 'does not fully cover the advances; - -
(v) secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers; - -
(vi) loans sanctioned to corporates against the security of shares / bonds / debentures or other securities or on clean basis for meeting promoter's
contribution to the equity of new companies in anticipation of raising resources; - -
(vii) bridge loans to companies against expected equity flows / issues; - -
(viii) All exposures to Venture Capital Funds (both registered and unregistered) 6.5 6.5
Total Exposure to Capital Market 1,654.5 550.3

(iv) Asset Liability Management

Maturity pattern of certain types of items of Assets & Liabilities* (` in million)
1 Day to Over 1 Over 2 Over 3 Over 6 Over 1 Year Over 3 Over 5 Over 7 Over 10 Total
30-31 Days month to 2 months months to 6 months to to 3 Years Years to 5 Years to 7 Years to 10 Years
(one month) months upto 3 months 1 Year Years Years Years
months
Liabilities
Borrowings from banks 1,836.1 284.3 739.9 1,419.4 5,580.3 16,516.5 7,159.6 140.5 210.8 183.5 34,070.9
Market borrowing 997.8 1,494.1 2,731.7 8,495.2 12,638.9 15,416.6 3,650.0 - - - 45,424.3
Fixed Deposit 123.5 164.4 243.8 301.2 157.4 1,128.6 195.1 - - - 2,314.0
2,957.4 1,942.8 3,715.4 10,215.8 18,376.6 33,061.7 11,004.7 140.5 210.8 183.5 81,809.2
Assets
Advances 1,274.5 1,255.3 1,140.8 4,281.9 12,537.5 16,850.5 15,261.1 13,323.5 13,529.8 17,004.2 96,459.1
Investments 262.1 100.1 - - - 206.5 104.8 1,835.9 - 311.1 2,820.5
1,536.6 1,355.4 1,140.8 4,281.9 12,537.5 17,057.0 15,365.9 15,159.4 13,529.8 17,315.3 99,279.6
* Classification of assets and liabilities under different maturity buckets is based on the same estimates and assumption as used by the Company for compiling the return
submitted to NHB.

(v) Customers Complaints

Particulars At At
March 31,2018 March 31,2017
a) No. of complaints pending at the beginning of the year - 3
b) No. of complaints received during the year 318 330
c) No. of complaints redressed during the year 305 333
d) No. of complaints pending at the end of the year 13 -

The Company has Customer Grievance Redressal Mechanism (CGRM) for convenience of customers to register their complaints and for the Company to monitor and
redress them.
(vi) The Company does not have any Overseas Assets.
(vii) The Company has paid ` Nil as penalty to NHB and other regulators during the year ended March 31, 2018 (March 2017 - ` Nil).

370
notes
forming part of the accounts Continued
(viii) 
The Company is registered with the following other financial sector advance tax (net of such provision) of ` 460.0 million (March 2017 - ` 360.2
regulators: million) (Refer Note 10(d)(i) and 14(c)). Further, in case of pending legal matters,
a) National Housing Bank the Company has additional provision of ` 6.4 million (March 2017 - ` 5.5
million).
b) Insurance Regulatory & Development Authority of India.
(ix) Details of Specified Bank Notes (SBN) held and transacted by the Company 31. Contingent liabilities and commitments not provided for:
during the period 8/11/2016 to 30/12/2016 (a) Contingent liabilities
The Company is involved in various litigations, the outcome of which are
Particulars SBNs Other Total possible and probable at March 31, 2018. In respect of obligations which
denomination are possible, the contingent liabilities are as follows:
notes
(i) Income tax matters in appeal - ` 416.3 million (March 2017 - ` 416.3
Closing cash in hand as on 8.11.2016 - - - million)
(+) Permitted receipts - - - (ii) Service tax matters in appeal - ` Nil (March 2017 - ` 0.7 million)
(-) Permitted payments - - - (iii) The contingent liability on account of claims filed against the company
(-) Amount deposited in Banks - - - not acknowledged as debt is ` 8.8 million (March 2017 - ` 11.2 million).
Closing cash in hand as on 30.12.2016 - - - As per management, the company has good chances of winning the cases,
In the ordinary course of business, loan customers of the Company have directly accordingly, no provision for any liability has been made in the financial
deposited cash as part of their Loan repayments in the collection accounts statements.
of the Company through various bank branches of its Banks, aggregating to (b) Commitments
` 83.0 million during the period November 8, 2016 to December 30, 2016, the
(i) Estimated amount of contracts remaining to be executed on capital
denominationwise details of which are currently not available with the Company.
account - ` 11.1 million (March 2017 - ` 1.9 million) (Net of advances -
Such amount is accounted against the customer’s regular loan obligations and
` 11.0 million, March 2017 - ` 1.8 million)
not included in the above.
(ii) Commitment towards part disbursement and non-disbursed sanctions
28. Impairment of assets: As per management, Accounting Standard (AS 28) would amount to ` 1,839.5 million (March 2017 - ` 1,529.5 million) and
not apply to financial assets such as loans and advances as the same have ` 2,456.6 million (March 2017 - ` 1,321.0 million) respectively.
been covered by provisions in accordance with guidelines on prudential norms
issued by NHB. 32. Previous year’s figures have been regrouped / reclassified wherever necessary
to correspond with current year’s classification / disclosure.
29. 
The Company has ` Nil foreign currency exposures at March 31, 2018 (March
2017 - ` Nil).

30. 
The Company has income tax matters pending assessment for various years
of ` 8,410.0 million (March 2017 - ` 7,800.0 million). The Company has paid

As per our report of even date attached For and on behalf of the Board
ICICI Home Finance Company Limited

For B S R & Co. LLP Anup Bagchi Anirudh Kamani

Chartered Accountants Chairman Managing Director & CEO
Firm’s Registration No: 101248W/W-100022

Venkataramanan Vishwanath Vikrant Gandhi

Partner Chief Financial Officer
Membership No: 113156

Place: Mumbai PRATAP SALIAN

Dated: April 19, 2018 Company Secretary

371
ICICI INVESTMENT MANAGEMENT COMPANY LIMITED
18TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Auditors Registered Office
Vijay Chandok, Chairman B S R & Co. LLP ICICI Bank Towers
Din: 01545262 Chartered Accountants Bandra- Kurla Complex
(Registration No: 101248w/w-100022) Mumbai – 400 051

N.L.Bhatia Sharad Malpani

Din: 00021847 Manager
Chandrashekhar Lal Vaishali Mehta Vivek Ranjan
Din: 00078377 Chief Financial Officer Company Secretary

directors’ report
to the members,

Your Directors have pleasure in presenting the Eighteenth Annual Report of the PUBLIC DEPOSITS
Company with the audited statement of accounts for the financial year ended March Your Company has not accepted any fixed deposits during the year, under Section
31, 2018. 73 of the Companies Act, 2013. Hence, there is no outstanding amount as on the
FINANCIAL RESULTS Balance Sheet date.

The summary of the financial results for the year under review is as follows: DIRECTORS
(` in ‘000) In terms of provisions of the Articles of Association of the Company, Vijay Chandok
will retire at the forthcoming Annual General Meeting and being eligible, offers
Particulars Fiscal 2017 Fiscal 2018
himself for re-appointment.
Gross Income 24,708 2,228
In view of the provisions of Companies Act, 2013, the members at their Extraordinary
Profit/(loss) Before Tax (6,647) 1,013 General meeting held on March 25, 2015, have appointed Chandrashekhar Lal and
N. L. Bhatia as Independent Directors of the Company for a period of five years
Provision for Tax 49 322 effective April 1, 2014.
Profit/(loss) After Tax (6,598) 691
AUDITORS
Transfer to Reserves (6,598) 691
In the Annual General Meeting held on June 19, 2015, B S R & Co. LLP, Chartered
Accountants, Mumbai, were appointed Statutory Auditors of the Company for
OPERATIONS AND FUTURE PROSPECTS
a period of five years. Ratification of appointment of Statutory Auditors is being
The main object of the Company is to carry on the business of management of sought from the members of the Company at the ensuing AGM. The Company has
mutual funds, unit trusts, offshore funds, pension funds, provident funds, venture received confirmation from B S R & Co. LLP, Chartered Accountants, Mumbai that
capital funds and insurance funds and to act as managers, consultants, advisors, their appointment, falls within the limits specified under Section 141(3)(g) of the Act
administrators, attorneys, agents or representatives of or for mutual funds, unit trusts, and they are not disqualified to be appointed as statutory auditor.
offshore funds, pension funds, provident funds, venture capital funds or insurance
Further, the report of the Statutory Auditors along with notes to Schedules is enclosed
funds formed or established in India or elsewhere by the Company or any other
to this report. There are no qualifications or observations in the Auditors’ Report.
person and to act as financial advisors and investment advisors and to render such
financial management, financial consultancy and advisory services to individuals, THE BOARD OF DIRECTORS
companies, corporations, trusts and other entities as supplemental activities of the
At March 31, 2018, the Board of Directors consisted of three members. During the
Company and as do not conflict with the fund management activities.
year, there were six Board meetings on April 20, 2017, July 21, 2017, September 13,
In FY2018, your Company made a profit of ` 0.7 million as compared to a loss of 2017, October 18, 2017, January 11, 2018 and March 21, 2018.
` 6.6 million in FY2017. In FY2018, your Company’s networth was ` 109.6 million as The names of the Directors and their attendance at Board Meetings during the year
compared to ` 108.9 million in FY2017. The networth of the Company increased by are set out in the following table:
` 0.7 million. The other income of the Company is from the interest earned on fixed
Name of Director Board Meetings attended during the year
deposits and redemption of mutual funds.
Vijay Chandok, Chairman 6/6
DIVIDEND Chandrashekhar Lal 4/6
N. L. Bhatia 5/6
Your Directors do not recommend payment of dividend for the year ended March
31, 2018. AUDIT COMMITTEE
TRANSFER TO RESERVE At March 31, 2018, the Audit Committee comprised of Chandrashekhar Lal, Chairman,
N. L. Bhatia and Vijay Chandok. During the year, there were four meetings of the
Net profit after tax of ` 0.7 million has been transferred to reserves.
Committee on April 20, 2017, July 21, 2017, October 18, 2017 and January 11, 2018.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS The details of the composition of the Committee and attendance at its Meetings
During the year under review, the Company has not advanced any loan/given during the year are set out in the following table:
guarantee. Name of Director Meetings attended during the year
Chandrashekhar Lal, Chairman 3/4
Your Company has not purchased the securities of any other body corporate
Vijay Chandok 4/4
exceeding sixty percent of its paid up capital, free reserves and securities premium
N. L. Bhatia 4/4
account or one hundred percent of its free reserves and securities premium account,
whichever is more.

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directors’ report
NOMINATION AND REMUNERATION COMMITTEE
At March 31, 2018, the Nomination and Remuneration Committee comprised of
Chandrashekhar Lal, Chairman, N. L. Bhatia and Vijay Chandok. During the year, the
Committee met once on April 20, 2017.
The details of the composition of the Committee and attendance at its Meetings
during the year, are set out in the following table:
Name of Director Meetings attended during the year
Chandrashekhar Lal, Chairman 1/1
Vijay Chandok 1/1
N. L. Bhatia 1/1
The Company has in place a policy on directors’ appointment and remuneration
including criteria for determining qualifications, positive attributes, independence of
a director as well as a policy for the remuneration for the directors, key managerial
personnel and other employees. The Company is a 100% subsidiary of ICICI Bank
and its employees are on deputation from ICICI Bank, as presently there are no
employees on the rolls of the Company, the Company as and when any employee
is recruited in the future, would adopt the Bank’s compensation policy practices to
the extent applicable to it. The remuneration payable to non-executive/independent
Directors would be governed by the provisions of the Companies Act, 2013 and its
applicable rules. The remuneration for the non-executive/independent Directors
would be sitting fee for attending each meeting of the Board/Committee thereof or
for any other purpose whatsoever as may be approved by the Board from time to
time within the limits as provided under Companies Act, 2013 and related rules.
All the non-executive/independent Directors would be entitled to reimbursement of
expenses for attending Board/Committee Meetings, official visits and participation
in various forums on behalf of the Company or for any other expense as may be
approved by the Board.
DECLARATION BY INDEPENDENT DIRECTORS
Section 149 of the Companies Act, 2013 (CA 2013) prescribes the criteria for
independence of a director and the requirement of taking an annual declaration from
the directors confirming their adherence to the criteria.
In order to ensure compliance with the aforesaid provision, declaration of
independence has been taken in accordance with Section 149 of the CA 2013 from
Independent Directors and has been placed before the Board at its Meeting held on
April 16, 2018.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 92(3) of the Companies Act, 2013 (‘the Act’) read with Rule 12(1)
of the Companies (Management and Administration) Rules, 2014, the extract of
annual return is annexed as Annexure-1.
DETAILS OF CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
In view of the nature of business activities of the Company, the provisions of Section
134 (3)(m) of the Companies Act, 2013 relating to conservation of energy and
technology absorption do not apply to the Company. The Company, however, uses
information technology in its operations.
During the year under review, pursuant to Section 134 (3) (m) read with Rule 8 (3)
of Companies (Accounts) Rules, 2014, Foreign exchange earnings and Outgo are as
follows:
During the year March 31, 2018
Foreign exchange earnings : Nil
Foreign exchange Outgo : Nil
RELATED PARTY TRANSACTIONS
The Company primarily enters into following types of transactions with its related
parties in its ordinary course of business adhering to arm’s length principles as laid
down in the Groups’ arm’s length policy:
a) Placing fixed deposits
b) Borrowings
c) Credit facilities (fund based and non-fund based facilities)
d) Purchase/sale of investments
e) Other treasury transactions, like money market borrowings and placements
f) Revenue transactions like interest income and expenses, dividends, brokerage,
commission and fee – income and expenses, insurance premium and insurance
claims, payment of expenses for shared infrastructure and services, sale/
purchase and leasing of properties
g) Remuneration, including stock options, to Key Managerial Persons (KMPs)
In terms of the Companies Act, 2013, approval of the Audit Committee is required for
undertaking these transactions. The Company has taken the pre-approval of the Audit
Committee in its meeting held on April 16, 2018 for continuing to undertake these
transactions because we believe that these satisfy both the conditions specified in
the Act, i.e., ordinary course of business and arm’s length basis. Similarly, the Audit
Committee is apprised about these transactions, on a quarterly basis.
The details of transactions entered into with the Related Parties are enclosed in Form
AOC-2 as Annexure-2.
INTERNAL FINANCIAL CONTROLS - RULE 8(5)(VIII) OF COMPANIES (ACCOUNTS)
RULES, 2014
The internal financial controls with reference to the Financial Statements are adequate
with the size and nature of business of the Company.
HOLDING AND SUBSIDIARIES- RULE 8(5)(IV) OF COMPANIES (ACCOUNTS)
RULES, 2014
Your Company continues to be the Subsidiary of ICICI Bank Limited.
CHANGE IN NATURE OF BUSINESS
During the year, there was no change in nature of business of the company.
POLICY ON CORPORATE SOCIAL RESPONSIBILITY
The Company is not required to constitute a Corporate Social Responsibility
Committee as it does not fall within the purview of Section 135(1) of the Companies
Act, 2013 and hence it is not required to formulate policy on corporate social
responsibility.
ORDER PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS OF THE COMPANY
There are no orders passed by the Regulators or Courts or Tribunals impacting the
going concern status and company’s operations.
RISK MANAGEMENT POLICY
In terms of the requirement under Section 134(3)(n) of the Act, effective steps
are being taken and continue to be taken with respect to development and
implementation of a risk management policy and other related aspects.
PARTICULARS OF EMPLOYEES
The employees of the Company are on deputation basis from the Holding Company.
As there are no employees on the rolls of the Company, the information required
under Sexual Harassment of Women at Workplace (Prevention, Prohibition &
Redressal) Act, 2013 is not applicable.
EVALUTION OF PERFORMANCE OF BOARD AND DIRECTORS
The Company, with the approval of its Nomination and Remuneration Committee
(Committee), has put in place an evaluation framework for evaluation of the Board,
Directors, Chairperson and Committees.
The evaluation for the Directors, the Board, the Chairperson and the Committees
was done through circulation of separate questionnaires - one each for the Directors,
Board, Chairperson and the Committees. The performance of the Board was
assessed on select parameters related to roles, responsibilities and obligations of the
Board, functioning of the Committees including assessing the quality, quantity and
timeliness of flow of information between the company management and the Board
that is necessary for the Board to effectively and reasonably perform their duties.
The criteria for performance evaluation of Directors (Independent/Non-Independent)
relates to the roles, expectations and contribution to areas which are relevant
to the Directors in their capacity as members of the Board or Committees of the
Board; while in case of the Chairperson, the criteria included leadership and ability
to effectively steer meetings and impartiality, commitment and keeping stakeholder
interests in mind, in addition to the criteria applicable for Directors. The criteria for
performance evaluation of the Board Committees included the performance of the
Committee in terms of the defined parameters and effectiveness of the Committee’s
deliberations/recommendations to the functioning of the Board.
DIRECTORS’ RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) read with Section 134(5) of the Companies Act, 2013,
your Directors confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards
had been followed along with proper explanation relating to material departures;
(b) 
the directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and of loss of the company for that period;
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 directors’ report
(c) 
the directors had taken proper and sufficient care for the maintenance of ACKNOWLEDGEMENTS
adequate accounting records in accordance with the provisions of this Act for The Company would like to express its gratitude for the support and guidance
safeguarding the assets of the company and for preventing and detecting fraud
received from ICICI Bank Limited, the holding company and other group companies.
and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and  For and on behalf of the Board

(e) 
the directors had devised proper systems to ensure compliance with the  VIJAY CHANDOK
provisions of all applicable laws and that such systems were adequate and  DIN: 01545262
operating effectively. Mumbai, April 16, 2018 Chairman

annexure 1
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2018 of II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
ICICI Investment Management Company Limited
All the business activities contributing 10 % or more of the total turnover of the
[Pursuant to Section 92 of the Companies Act, 2013 and rule 12(1) of the Companies
company shall be stated:
(Management and Administration) Rules, 2014]
Sl. Name and Description NIC Code of the % to total turnover
I. REGISTRATION AND OTHER DETAILS No. of main products / Product/ service of the company
i) CIN - U65990MH2000PLC124773 services
ii) Registration Date – 09/03/2000 1. NIL
iii) Name of the Company – ICICI Investment Management Company Limited
iv) Category / Sub-Category of the Company – Public Company III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
v) Address of the Registered Office and contact details – Sl. Name and Address of CIN/GLN Holding/ % of Applicable
ICICI Bank Towers, Bandra Kurla Complex, Bandra East, Mumbai 400051 No. the Company Subsidiary/ shares Section
Tel: 022 40086705 Associate held
vi) Whether listed company - No 1. ICICI Bank, L65190GJ1994 Holding 100% 2 (46)
vii) Name, Address and contact details of Registrar & Transfer Agents (RTA), if any ICICI Bank Towers, PLC 021012
3i Infotech Limited Bandra Kurla
Complex,
Tower 5, 3rd Floor, Block B, International Infotech Park,
Bandra East,
Vashi Railway Station Complex, Vashi, Mumbai - 400051
Navi Mumbai - 400 703,
www.3i-infotech.com
Tel:022 6792 8034

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directors’ report
IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding
Category of No. of Shares held at the No. of Shares held at the end of %
Shareholders beginning of the year the year Change
during
Demat Physical Total % of Demat Physical Total % of the
Total Total year
Shares Shares
A. Promoters
(1) Indian
(a) Individual/HUF – – – – – – – – –
(b) Central Govt – – – – – – – – –
(c) State Govt (s) – – – – – – – – –
(d) Bodies Corp. – – – – – – – – –
(e) Banks / FI* 1,00,00,100 600 1,00,00,700 100 1,00,00,100 600 1,00,00,700 100 –
(f) Any Other…. – – – – – – – – –

Sub-total (A) (1):- 1,00,00,100 600 1,00,00,700 100 1,00,00,100 600 1,00,00,700 100 –

(2) Foreign
(a) NRIs - Individuals – – – – – – – – –
(b) Other – Individuals – – – – – – – – –
(c) Bodies Corp. – – – – – – – – –
(d) Banks / FI – – – – – – – – –
(e) Any Other…. – – – – – – – – –

Sub-total (A) (2):- – – – – – – – – –

Total 1,00,00,100 600 1,00,00,700 100 1,00,00,100 600 1,00,00,700 100 –

shareholding of
Promoter (A) =
(A)(1)+(A)(2)

B. Public Shareholding
1. Institutions
(a) Mutual Funds – – – – – – – – –
(b) Banks / FI – – – – – – – – –
(c) Central Govt – – – – – – – – –
(d) State Govt(s) – – – – – – – – –
(e) Venture Capital Funds – – – – – – – – –
(f) Insurance Companies – – – – – – – – –
(g) FIIs – – – – – – – – –
(h) Foreign Venture Capital – – – – – – – – –
Funds
(i) Others (specify) – – – – – – – – –

Sub-total (B)(1):- – – – – – – – – –

2. Non-Institutions
(a) Bodies Corp. – – – – – – – – –
(i) Indian – – – – – – – – –
(ii) Overseas – – – – – – – – –
(b) Individuals – – – – – – – – –
(i) Individual shareholders – – – – – – – – –
holding nominal share
capital upto ` 1 lakh
(ii) Individual shareholders – – – – – – – – –
holding nominal share
capital in excess of
` 1 lakh
(c) Others (specify) – – – – – – – – –

Sub-total (B)(2):- – – – – – – – – –
Total Public
Shareholding
(B)=(B)(1)+(B)(2)

C. Shares held by – – – – – – – – –
Custodian for
GDRs & ADRs

Grand Total 1,00,00,100 600 1,00,00,700 100 1,00,00,100 600 1,00,00,700 100 –
(A+B+C)

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 directors’ report
* Beneficial Interest of 700 shares is held by the Bank through the following entities: (iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters
and Holders of GDRs and ADRs): (Not Applicable)
Folio No Name of the shareholder No of
shares Sl. For Each of the Top Shareholding at the Cumulative
9000462 ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED 100 No. 10 Shareholders beginning shareholding during
of the year the year
IIN1002 ICICI HOME FINANCE COMPANY LIMITED 100
No. of % of total No. of % of total
IIN1003 ICICI SECURITIES LIMITED 100 shares shares of shares shares of
the the
IIN1004 ICICI LOMBARD GENERAL INSURANCE CO LTD 100 company company
IIN1005 ICICI SECURITIES PRIMARY DEALERSHIP LTD 100 At the beginning of – – – –
the year
IINV014 ICICI TRUSTEESHIP SERVICES LIMITED 200
Date wise Increase / – – – –
Total 700 Decrease in Shareholding
during the year specifying
the reasons for increase
(ii) Shareholding of Promoters
/ decrease (e.g. allotment
Sl Shareholder’s Shareholding at the Shareholding % / transfer / bonus / sweat
No. Name beginning at the end change equity etc):
of the year of the year In share
holding At the End of the year (or – – – –
during on the date of separation,
the year if Separated during the
No. of % of %of Shares No. of % of % of Shares year)
Shares total Pledged / Shares total Pledged /
Shares encumbered Shares encumbered (v). Shareholding of Directors and Key Managerial Personnel: (Not Applicable)
of the to total of the to total
company shares company shares
Sl. For Each of the Directors Shareholding at the Cumulative
1. ICICI Bank 1,00,00,700 100% – 1,00,00,700 100% – –
Limited
No. and KMP beginning Shareholding during
of the year the year
(iii) Change in Promoters’ Shareholding (No change) No. of % of total No. % of total
shares shares of shares shares
Sl. Particulars Shareholding at the Cumulative of the of the
No. beginning Shareholding during company company
of the year the year At the beginning of the
year
No. of % of total No. of % of total
shares shares shares shares Date wise Increase /
of the of the Decrease in Shareholding
company company during the year specifying None of the Directors or Key Managerial
the reasons for increase / Personnel hold any shares in the Company.
At the beginning of 1,00,00,700 100% 1,00,00,700 100%
decrease (e.g. allotment
the year
/ transfer / bonus/ sweat
Date wise Increase / – – – – equity etc):
Decrease in Promoters
At the end of the year
Shareholding during
the Year specifying the
reasons for increase /
decrease (e.g. allotment
/ transfer / bonus/
sweat equity etc):
At the end of the year 1,00,00,700 100% 1,00,00,700 100%

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directors’ report
V. INDEBTEDNESS B. Remuneration to other directors:
Indebtedness of the Company including interest outstanding/ accrued but not
due for payment Sl. Particulars of Name of Directors Total
No. Remuneration Amount `
Chandrashekhar Lal N. L. Bhatia
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness 1. Independent Directors
deposits • Fee for attending board / 80,000 100,000 180,000
Indebtedness at – – – – committee meetings
the beginning of • Commission – – –
the financial year
• Others, please specify – – –
i)  Principal
Amount
Total (1) 80,000 100,000 180,000
ii) Interest due but
not paid 2. Other Non-Executive
iii) Interest accrued Directors
but not due • Fee for attending board / – – –
Total (i+ii+iii) – – – – committee meetings
Change in Indebt- – – – – • Commission
– – –
edness during • Others, please specify
the financial year – – –
• Addition Total (2) – – –
• Reduction
Total (B)=(1+2) 80,000 100,000 180,000
Net Change – – – – Total Managerial Remunera- 180,000
Indebtedness at the – – – – tion (A+B)
end of the financial Overall Ceiling as per the Act 8,400,000
year
i)  Principal
Amount C. Remuneration to Key Managerial Personnel other than MD / Manager/WTD
ii) Interest due but
not paid S l . Particulars of Remuneration Key Managerial Personnel
iii) Interest accrued No.
but not due Company CFO Total
Total (i+ii+iii) – – – – Secretary
Vivek Vaishali
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Ranjan* Mehta#
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
1 Gross salary
Total amount in ` (a) Salary as per provisions
Sl. Particulars of Remuneration Sharad contained in Section 17(1) of
No. Malpani the Income-tax Act, 1961
(Manager)* (i) 
Salary and allowance for 513,271 – 513,271
1. Gross salary Fiscal 2016
(a) Salary as per provisions contained in Section 17(1) of (ii) Bonus Paid in fiscal 2016 – – –
the Income-tax Act, 1961 (b) Value of perquisites under – – –
(i) Salary and allowance for Fiscal 2018 – Section17(2) of the Income-tax
(ii) Bonus Paid in fiscal 2018 – Act, 1961
(b) Value of perquisites under Section 17(2) of the – (c) Profits in lieu of salary under – – –
Income-tax Act, 1961 Section 17(3) of the Income-
(c) Profits in lieu of salary under Section 17(3) of the – tax Act, 1961
Income Tax Act, 1961
2 Stock Option – – –
2. Stock Option –
3. Sweat Equity – 3 Sweat Equity – – –

4. . Commission – 4 Commission – – –
- as % of profit - as % of profit
- others, specify…
- others, specify…
5. Others, please specify –
5 Others, please specify – – –
Total (1a(i)+a(ii)+b) –
Total remuneration paid in Fiscal 2018 (excludes perqui- Total 513,271 – 513,271
sites on stock options reported in point 2)
Ceiling as per the Act – * On deputation from the holding company, i.e., ICICI Bank Limited
# Remuneration is received from another company within ICICI Group.
* Remuneration is received from another company within ICICI Group.

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 directors’ report
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

Type Section Brief Details of Authority Appeal

of the Description Penalty / [RD/ made,
Companies Punishment/ NCLT if any
Act Compounding / (give
fees imposed COURT] Details)
A. COMPANY
Penalty – – – – –
Punishment – – – – –
Compounding – – – – –
B. DIRECTORS
Penalty – – – – –
Punishment – – – – –
Compounding – – – – –
C. OTHER OFFICERS IN DEFAULT
Penalty – – – – –
Punishment – – – – –
Compounding – – – – –

annexure 2
Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the (d) Salient terms of the contracts or arrangements or transactions including the
Companies (Accounts) Rules, 2014) value, if any - NA

Form for disclosure of particulars of contracts/arrangements entered into by (e) Justification for entering into such contracts or arrangements or transactions-
the company with related parties referred to in sub-section (1) of Section 188 of NA
the Companies Act, 2013 including certain arms’ length transactions under third
proviso thereto (f) date(s) of approval by the Board - NA
1. Details of contracts or arrangements or transactions not at arm’s length basis (g) Amount paid as advances, if any: - NA
(a) Name(s) of the related party and nature of relationship - NA
(h) Date on which the special resolution was passed in general meeting as required
(b) Nature of contracts/arrangements/transactions - NA under first proviso to Section 188 – NA
(c) Duration of the contracts / arrangements/transactions - NA

2. Details of material contracts or arrangement or transactions at arm’s length basis

Sr. Nature of contracts/ Name of the Nature of relationship Duration of con- Salient term of contracts/ Amount in `
No. transactions related party tracts transactions
1 Investment in fixed deposit ICICI Bank Holding Company – Interest at applicable rate 29,872,900
Limited

2 Interest on fixed deposit ICICI Bank Holding Company – Interest at applicable rate 1,529,301
Limited
3  ommon corporate, Use of
C ICICI Bank Holding Company – Rentals, common corporate 678,339
office space and other facilities Limited expenses, sharing charges and
expenses reimbursed D&O insurance charged by ICICI
Bank Limited based on Group’s
cost sharing policy.

 VIJAY CHANDOK
 DIN: 01545262
Mumbai, April 16, 2018 Chairman

378
independent auditors’ report
to the Members of ICICI Investment Management Company Limited
Report on the Audit of Financial Statements
We have audited the accompanying financial statements of ICICI Investment
Management Company Limited (the “Company”), which comprise the Balance Sheet
as at 31 March 2018, the Statement of Profit and Loss, the Cash Flow Statement for
the year then ended, and notes to the financial statements, including a summary of
the significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (the “Act”) with respect to the preparation of these
financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified
under Section 143 (10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company’s Directors, as
well as evaluating the overall presentation of the financial statements.
We are also responsible to conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
the auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the
audit evidence obtained up to the date of the auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by
the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India of the state of affairs of the
Company as at 31 March 2018, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2016 (the “Order”) issued by
the Central Government in terms of Section 143(11) of the Act, we give in “Annexure
A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by
the Company so far as it appears from our examination of those books;
c) 
The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on 31
March 2018 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2018 from being appointed as a director in terms of
Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to
the financial statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure B”; and
g) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations
given to us:
i. the Company does not have any pending litigations which would impact
its financial position in its financial statements – Refer Note 3.20(b) to the
financial statements;
ii. the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. 
there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company; and
iv. The disclosures in the financial statements regarding holdings as well as
dealings in specified bank notes during the period from 8 November 2016
to 30 December 2016 have not been made since they do not pertain to the
financial year ended 31 March 2018.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Partner
Mumbai, April 16, 2018 Membership No: 113156
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 annexure a to the independent auditors’ report
31 March 2018 (Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) In the current year, the Company has written off its block of fixed assets.
Accordingly no physical verification of fixed assets was undertaken.
(c) According to the information and explanations given to us and on the basis
of our examination of the records of the Company, the Company does not
hold any immovable properties as at 31 March 2018.
(ii) The Company is a service company and during the year ended 31 March 2018
it did not hold any physical inventories in the current year. Thus, paragraph 3(ii)
of the Order is not applicable.
(iii) According to the information and explanations given to us, the Company has
not granted any loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under
Section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us,
the Company has complied with the provisions of Section 185 and 186 of the
Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public. Accordingly,
paragraph 3(v) of the Order is not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records
under Section 148(1) of the Act for any of the services rendered by the Company.
Accordingly, paragraph 3(vi) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and on the basis
of our examination of the records of the Company, amounts deducted /
accrued in the books of account in respect of undisputed statutory dues
including income-tax, service tax and other material statutory dues
have been deposited regularly during the year by the Company to the
appropriate authorities. As informed to us, the Company did not have any
dues on account of provident fund, employee’s state insurance, sales tax,
duty of customs, duty of excise, value added tax and cess.
(b) According to the information and explanations given to us, no undisputed
amounts payable in respect of income-tax, service tax and other material
statutory dues were in arrears as at 31 March 2018 for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to us, there are no dues
of income-tax, service tax and other material statutory dues which have not
been deposited with the appropriate authorities on account of any dispute.
annexure - b to the independent auditors’ report
31 March 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial reporting of ICICI Investment
Management Company Limited (the “Company”) as of 31 March 2018 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria established
by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India (the “ICAI”).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the Company’s policies,
safeguarding of its assets, prevention and detection of frauds and errors, accuracy and
completeness of the accounting records, and timely preparation of reliable financial
information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls
over financial reporting based on our audit. We conducted our audit in accordance with
the Guidance Note and the Standards on Auditing, issued by the ICAI and deemed to be
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, both issued
by the ICAI. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and maintained
and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy
of the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls system
over financial reporting.
380
(viii) The Company did not have any outstanding dues to any financial institutions,
banks or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and term loans during the year.
Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud by the
Company or on the Company by its officers or employees has been noticed or
reported during the course of our audit.
(xi) During the year ended 31 March 2018 the Company has not paid any managerial
remuneration. Accordingly, paragraph 3 (xi) of the Order pertaining to
managerial remuneration is not applicable.
(xii) In our opinion and according to the information and explanations given to us,
the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order
is not applicable.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties
are in compliance with Sections 177 and 188 of the Act where applicable and
details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year. Accordingly,
paragraph 3(xiv) of the Order is not applicable.
(xv) The Company has not entered into non-cash transactions with directors or
persons connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Partner
Mumbai, April 16, 2018 Membership No: 113156
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition
of the company’s assets that could have a material effect on the financial statements.
Inherent limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting,
including the possibility of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2018, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Partner
Mumbai, April 16, 2018 Membership No: 113156
balance sheet profit and loss statement
at March 31, 2018 for the year ended March 31, 2018

(` in ‘000) (` in ‘000)
Particulars Note At March 31, At March 31, Particulars Note Year ended Year ended
No. 2018 2017 No. March 31, March 31,
2018 2017
EQUITY AND LIABILITIES Income
Shareholders’ funds Revenue from operations 3.12 - 12,705
Share capital 3.1 100,007 100,007 Other income 3.13 2,228 12,003
Reserves and surplus 3.2 9,630 8,939
109,637 108,946 Total Revenue 2,228 24,708
Current liabilities
Trade payables Expenses
(A) total outstanding dues of micro - - Employee benefits expenses 3.14 - 15,075
enterprises and small enterprises Depreciation and amortization expenses 3.5 4 4
(B) total outstanding dues of creditors other 3.3 239 948 Other expenses 3.15 1,211 16,276
than micro enterprises and small enterprises
Other current liabilities 3.4 27 54 Total expenses 1,215 31,355
266 1,002
TOTAL 109,903 109,948 Profit/(Loss) before tax 1,013 (6,647)
ASSETS Tax expense:
Non-current assets Current tax 322 -
Fixed assets Deferred tax - -
Intangible assets 3.5 - - Add: Excess provision of earlier years written - 49
Tangible assets 3.5 - 13 back
Non-current investments 3.6 2 2
Other Non Current Assets 3.7 3,755 4,737 Profit after tax 691 (6,598)
3,757 4,752
Current assets Earnings per equity share 3.16
Current investments 3.8 65,571 94,746 Basic (`) 0.07 (0.66)
Trade receivables 3.9 13 50 Diluted (`) 0.07 (0.66)
Cash and bank balances 3.10 30,559 1,714
Other current assets 3.11 10,003 8,686
106,146 105,196
TOTAL 109,903 109,948

Significant accounting policies and notes to accounts (Note nos. 2 to 3.20) Significant accounting policies and notes to accounts (Note nos. 2 to 3.20)
The accompanying significant accounting policies and notes to accounts form an The accompanying significant accounting policies and notes to accounts form an
integral part of the Balance Sheet. integral part of the statement of profit and loss.

As per our report of even date attached For and on behalf of the Board of Directors



For B S R & Co. LLP Vijay Chandok N. L. Bhatia
Chartered Accountants DIN: 01545262 DIN: 00021847
ICAI Firm Registration no.: Chairman Director
101248W/W–100022



Venkataramanan Vishwanath Vaishali Mehta Vivek Ranjan
Partner Chief Financial Officer Company Secretary
Membership No: 113156

Place: Mumbai
Date: April 16, 2018

381
 cash flow statement
for the year ended March 31, 2018

(` in ‘000)
Particulars Year ended Year ended
March 31, 2018 March 31, 2017
(A) Cash flow from operating activities
Profit before taxes 1,013 (6,647)
Add/(Less): Adjustments for:
Depreciation / Amortisation 4 4
Excess provision written back - 49
Dividend received - (4,871)
Interest income on deposit (1,529) -
Asset written off 9 -
Provision for service tax 100 8,622
Provision for Goods and Services Tax (GST) 127 -
Profit on sale of investments (699) (6,220)
Operating (loss)/profit before working capital changes (975) (9,063)

Adjustments for:
Movement in current assets, loans and advances (36) (1,175)
Movement in current liabilities and provisions (736) (13,358)
Cash generated from operations (1,747) (23,596)
Refund/(payment) of income taxes paid (209) 4,764
Net cash used in operating activities - A (1,956) (18,832)

(B) Cash Flow from investing activities :

Dividend received - 4,871
Proceeds from sale of investments 29,873 138,017
Purchase of investments - (122,817)
Purchase of fixed deposits (29,873) -
Interest received 928 -
Net cash generated from investing activities - B 928 20,071

(C) Cash flow from financing activities :

Net cash from in financing activities - C - -
Net increase/(decrease) in cash and cash equivalents (A+B+C) (1,028) 1,239
Cash and cash equivalents at beginning of the year 1,714 475
Cash and cash equivalents at end of the year (see note 1) 686 1,714

Note 1: Cash and cash equivalents:

Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts.
Balances with banks
a) In current account 686 1,714
b) In fixed deposit - -
Total 686 1,714

Significant accounting policies and notes to accounts (Note nos. 2 to 3.20)

As per our report of even date attached For and on behalf of the Board of Directors


For B S R & Co. LLP Vijay Chandok N. L. Bhatia
Chartered Accountants DIN: 01545262 DIN: 00021847
ICAI Firm Registration no.: Chairman Director
101248W/W–100022



Venkataramanan Vishwanath Vaishali Mehta Vivek Ranjan
Partner Chief Financial Officer Company Secretary
Membership No: 113156

Place: Mumbai
Date: April 16, 2018

382
notes
forming part of the accounts
Significant accounting policies and notes to accounts
1 Background
ICICI Investment Management Company Limited (the Company or IIMCL) was
incorporated in Mumbai, India. The Company’s main objectives on the basis of
which it has been incorporated is to carry on the business activities in respect of
the management of various funds and to act as managers, consultants, advisors,
administrators, attorneys, agents or representatives of or for such funds.
During FY2017, the Company had transferred Emerging India Fund (EIF) to ICICI
Venture Funds Management Company Limited (ICICI Venture). Further, in case
of EIF II, the Company had provided an option to investors to either receive back
the initial capital amount or transfer the same to India Advantage Fund Series
4. Thereafter, an application was made to the Securities and Exchange Board of
India (SEBI) for cancellation of certificate of registration of EIF II and the same
was cancelled by SEBI with effect from January 9, 2017.
2 Significant accounting policies
2.1 Basis of preparation of financial statements
 The accompanying financial statements have been prepared and presented
on the accrual basis of accounting and comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013 read with Rule 7 of
the Companies (Accounts) Rules 2014 and other relevant provisions of the
Companies Act, 2013. The financial statements are presented in Indian rupees in
thousands, rounded off to the nearest thousand, unless otherwise stated.
2.2 Use of estimates
 The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets, liabilities and
disclosure of contingent liabilities on the date of the financial statements and the
reported revenue and expenses during the reporting period. The estimates and
assumptions used in the accompanying financial statements are based upon
management’s evaluation of the relevant facts and circumstances as of the date
of the financial statements. Actual results may differ from those estimates. Any
revision to accounting estimates is recognised prospectively in current and
future periods.
2.3 Current – non current classification
All assets and liabilities are classified into current and non-current.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. It is expected to be realised in, or is intended for sale or consumption in, the
company’s normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is expected to be realised within 12 months after reporting date; or
d. It is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for at least 12 months after reporting date.
Current assets include current portion of non-current financial assets. All other
assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. It is expected to be settled in the company’s normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is due to be settled within 12 months after reporting date; or
d. The company does not have an unconditional right to defer settlement of
the liability for at least 12 months after the reporting date. Terms of a liability
that could, at the option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.
Current liabilities include current portion of non-current financial liabilities. All
other liabilities are classified as non-current.
2.4 Revenue recognition
Investment management fees are recognised on an accrual basis in accordance
with the respective terms of contracting parties. These fees are linked to the
capital commitments having regard to the amount of obligation outstanding,
the nature of services provided and the timing of the investments/divestment in
portfolio companies relating thereto.
Based on the contribution agreement, the management fee would comprise an
amount equal to 2.00% per annum of the capital commitments (plus service
tax at applicable rates) of the holders of Class A units. Upon the expiry of the
commitment period, the management fee would comprise an amount equal to
2.00% per annum (plus service tax at applicable rates) of aggregate acquisition
cost of unrealised investments.
The commitment period of Emerging India Fund (the Fund) began at the date of
the Initial Closing of the Fund, i.e. September 20, 2010 and with the extension of
6 months ended on March 19, 2014.
When the uncertainty relating to collectability of management fees arises
subsequent to the rendering of services an appropriate provision to reflect the
uncertainty is recorded in the books.
Performance Fees
Performance fees represent allocation of investment gains (carried interest),
which are a component of the Company’s interest in the Fund for holding Class
B shares.
Other income
Interest income is accounted on a period proportionate basis. Dividend income
is recognised when the right to receive the dividend is established.
2.5 Fixed assets and depreciation
Fixed assets are carried at cost less accumulated depreciation and impairment,
if any. Cost includes cost of purchase and all other expenditure in relation to
inward freight, duties, taxes and incidental expenses related to acquisition and
installation.
Depreciation is provided on a straight line method based on estimated useful
life as per the relevant provisions of the Companies Act, 2013 or based on
management estimate as given below:
Sr. no Description Useful life
1. Intangible assets (Software) 4 years
2. Office equipments 5 years
Impairment of assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired based on internal/external factors. If
any such indication exists, the Company estimates the recoverable amount of
the asset. If such recoverable amount of the asset or the recoverable amount
of the cash generating unit to which the asset belongs, is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the statement of
profit and loss.
If at the balance sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and
the asset is reflected at the recoverable amount subject to a maximum of
depreciable historical cost.
2.6 Investments
Investments are classified as long term or current, based on intention of the
management at the time of purchase.
Long-term investments are carried at carrying cost less any other than temporary
diminution in value, determined separately for each individual investment.
Current investments are valued at the lower of cost or net realisable value. The
comparison of cost and net realisable value is done separately in respect of each
individual investment. For determining the net realisable value of mutual funds,
the net asset value (NAV) as declared by the mutual fund is considered.
Purchase and sale of investments are recorded on trade date. The gains/losses
on sale of investments are recognised in the statement of profit and loss on the
trade date. Profit or loss on sale of investments is determined on First In First Out
(FIFO) basis.
2.7 Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange prevailing
on the date of the transactions. Exchange differences, if any, arising out of
foreign exchange transactions settled during the period are recognised in
the statement of profit and loss of the period. Monetary assets and liabilities
denominated in foreign currencies are translated at the balance sheet date at the
closing exchange rates on that date and the resultant exchange differences, if
any, are recognised in the statement of profit and loss.
2.8 Income tax
Income tax expense comprises current tax (i.e. amount of tax for the period
determined in accordance with the income tax law) and deferred tax charge
or credit (reflecting the tax effects of timing differences between accounting
income and taxable income for the period).
Current tax
Current tax expense is recognised on an annual basis under the taxes payable
method, based on the estimated tax liability computed after taking credit for
allowances and exemption in accordance with the Income Tax Act, 1961. In case
383
 notes
forming part of the accounts Continued
of matters under appeal due to disallowance or otherwise, full provision is made b. Shares held by the holding company
when the said liabilities are accepted by the Company.
(` in ‘000)
In accordance with the recommendations contained in guidance note issued by
Particulars At At
the Institute of Chartered Accountants of India, Minimum Alternate Tax (MAT)
March 31, 2018 March 31, 2017
credit is recognised as an asset to the extent there is convincing evidence that
the Company will pay normal income tax in future by way of a credit to the No. of Amount No. of Amount
statement of profit and loss and presented as MAT credit entitlement. shares shares
Equity shares of ` 10/- each
Deferred tax held by ICICI Bank Limited and
The deferred tax charge or credit and the corresponding deferred tax liabilities or its nominees 10,000,700 100,007 10,000,700 100,007
assets are recognised using the tax rates that have been enacted or substantively
enacted at the balance sheet date. Deferred tax assets are recognised only to the Details of shares held by shareholders holding more than 5% of the
c. 
extent there is reasonable certainty that the assets can be realised in future. aggregate shares in the Company
However, where there is unabsorbed depreciation or carried forward loss (` in ‘000)
under taxation laws, deferred tax assets are recognised only if there is a virtual Particulars At At
certainty of realisation of such assets. Deferred tax assets are reviewed at each March 31, 2018 March 31, 2017
balance sheet date and written down or written up to reflect the amount that is
No. of Amount No. of Amount
reasonable/virtually certain (as the case may be) to be realised.
shares shares
2.9 Provisions, contingent liabilities and contingent assets Equity shares of ` 10/- each
Provisions comprise liabilities of uncertain timing or amount. Provisions are held by ICICI Bank Limited,
recognised when the Company recognises that it has a present obligation as the Holding Company and its
a result of past events and it is probable that an outflow of resources will be nominees 10,000,700 100,007 10,000,700 100,007
required to settle obligation in respect of which a reasonable estimate can be
Shares held by the holding company:
made.
1. All the above shares are held by ICICI Bank Limited (the holding company)
A disclosure for a contingent liability is made when there is a possible obligation and its nominees.
or a present obligation that may, but probably will not, require an outflow of 2. The Company has only one class of shares referred to as equity shares
resources. When there is a possible obligation or a present obligation in respect having a par value of ` 10. Each holder of equity shares is entitled to one
of which the likelihood or outflow of resources is remote, no provision or vote per share.
disclosure is made. 3. The Company declares and pays dividend in Indian rupees. No dividend
Provisions are reviewed at each balance sheet date and adjusted to reflect the has been declared by the Company during the year ended March 31, 2018.
current best estimate. If it is no longer probable that the outflow of resources 4. In the event of liquidation of the Company, the holder of equity shares will
would be required to settle the obligation, the provision is reversed. Contingent be entitled to receive the remaining assets of the Company, after repayment
assets are not recognised in the financial statements. of all liabilities and distribution of all preferential amounts. However, no such
preferential amounts exist currently. The distribution will be in proportion to
2.10 Earnings per share the number of equity shares held by the shareholders.
 The basic earnings per share is computed by dividing the net profit/(loss)
3.2 Reserves and surplus
attributable to the equity shareholders by weighted average number of equity
shares outstanding during the reporting period. (` in ‘000)
The number of equity shares used in computing diluted earnings per share At At
comprises the weighted average number of shares considered for deriving Particulars March 31, March 31,
basic earnings per share and also weighted average number of equity shares 2018 2017
which would have been issued on the conversion of all dilutive potential shares. Surplus in the statement of profit and loss:
In computing diluted earnings per share only potential equity shares that are Balance as per last financial statements 8,939 15,537
dilutive are included. Add: Profit/(loss) for the year 691 (6,598)
Total 9,630 8,939
3. Notes to accounts for the year ended March 31, 2018
3.1 Share capital 3.3 Trade payables
(` in ‘000) (` in ‘000)
At At At At
Particulars Par value March 31, March 31, Particulars March 31, March 31,
per share 2018 2017 2018 2017
Authorised: Sundry creditors:
25,000,000 equity shares of ` 10 a) Payable to holding company 148 369
each 10 250,000 250,000 b) Other liabilities 91 579
Issued, subscribed and paid up: Total 239 948
10,000,700 equity shares of ` 10 3.4 Other current liabilities
each fully paid up 10 100,007 100,007
(` in ‘000)
a. Reconciliation of equity shares outstanding at the beginning and at the end of At At
the year Particulars March 31, March 31,
At At 2018 2017
March 31, March 31, Other creditors:
Particulars 2018 2017 a) Tax deducted at source payable 25 54
No. of shares at the beginning 10,000,700 10,000,700 b) Goods and Services Tax (GST) payable 2 -
No. of shares at the end 10,000,700 10,000,700 Total 27 54

3.5 Fixed Assets

(` in ‘000)
Description Gross Block Depreciation Net Block
Asset details At Additions Deletions At At Additions for Deletions for At At
April 1, 2017 during the during the March 31, April 1, the period the period March 31, March 31,
period period 2018 2017 2018 2018
Intangibles
Computer software 41 - - 41 41 - - 41 -
Tangibles
Office equipment 18 - 18 - 5 4 9 - -
Total 59 - 18 41 46 4 9 41 -
Previous year 59 - - 59 42 4 - 46 13

384
notes
forming part of the accounts Continued
3.6 Non current investments 3.11 Other current assets (unsecured, considered good)
(Valued at cost unless stated otherwise)
(` in ‘000)
(` in ‘000) At At
At At Particulars March 31, March 31,
Particulars March 31, March 31, 2018 2017
2018 2017
a) Advances recoverable in cash or in kind or for
Trade investments:
value to be received 4 6
Nil
b) Service tax input/payable (net) 8,723 8,622
Other investments:
Investment in equity instruments: c) Provision for input service tax (8,723) (8,622)
First Source Solutions Limited: 200 shares d) State GST (SGST) input/payable (net) 63 -
(March 31, 2017: 200 shares) of ` 10 each 2 2 e) Provision for Input SGST (63) -
ICICI Venture Funds Management Company f) Central GST (CGST) input/payable (net) 63 -
Limited: 1 share (March 31, 2017: 1 share) of g) Provision for Input CGST (63) -
` 10 each1 01 01
h) Income tax refund receivable 9,550 8,680
Total 2 2
Aggregate cost of quoted investments 2 2 i) Accrued interest 449 -
Aggregate cost of unquoted investments 01 01 Total 10,003 8,686
Aggregate market value of quoted investments 11 8
3.12 Revenue from operations
1. Insignificant amount
(` in ‘000)
3.7 Other non-current assets
Year ended Year ended
(` in ‘000) Particulars March 31, March 31,
At At 2018 2017
Particulars March 31, March 31, Gross management fee - 14,575
2018 2017
Other receivables: Less: Service tax - 1,870
a) Tax paid in advance/tax deducted at source (net) 1,024 1,878 Net management fee - 12,705
b) Minimum alternate tax (MAT) credit entitlement1 2,731 2,859
Total 3,755 4,737 3.13 Other income
1. During FY2018, MAT credit of ` 128,774 has been utilised. (` in ‘000)

3.8 Current investments Year ended Year ended

Particulars March 31, March 31,
(` in ‘000) 2018 2017
At At
Dividend income - 4,871
Particulars March 31, March 31,
2018 2017 Interest income on fixed deposits 1,529 -
Investment in mutual funds (unquoted) Interest on income tax refund - 912
210,823.22 units of ICICI Prudential Flexible Income
Profit on sale of investment 699 6,220
Plan – Growth Option (March 31, 2017: 304,623.22
units) 65,571 94,746 Total 2,228 12,003
Total 65,571 94,746
3.14 Employee benefits expenses
3.9 Trade receivables (` in ‘000)
(` in ‘000) Year ended Year ended
At At Particulars March 31, March 31,
Particulars March 31, March 31, 2018 2017
2018 2017
Salaries and wages (refer note a) - 15,075
Unsecured
Debts outstanding for a period exceeding six months: Total - 15,075
a) Considered good 13 -
a. 
For FY2017, all employees of the Company were on deputation basis
b) Considered doubtful - -
from the holding company. Payment made to the holding company by
Other Debts:
the Company towards salaries, provident fund/gratuity/pension/leave
a) Considered good - 50 encashment of these employees for services rendered to the Company are
b) Considered doubtful - - included under employee cost.
Less: Provision for doubtful debts - -
Total 13 50 3.15 Other expenses

(` in ‘000)
3.10 Cash and bank balances
Year ended Year ended
(` in ‘000) Particulars March 31, March 31,
At At 2018 2017
Particulars March 31, March 31, a) Directors sitting fee 180 160
2018 2017
b) Professional tax 2 2
(A) Cash and cash equivalents
c) General and administrative expenses1 678 2,120
Current accounts 686 1,714
d) Contribution charges2 - 3,605
Fixed deposits (with original maturity upto 3
months) - - e) Auditors’ remuneration3 75 489
Total (A) 686 1,714 f) Legal and professional fees 86 785
(B) Other bank balances g) Asset written off 9
Fixed deposits (with original maturity more than h) Provision of expense for input service tax 100 8,622
3 months) 29,873 - i) Provision of expense for input GST 127 -
Total (B) 29,873 - j) Miscellaneous expenses (46) 493
Total (A+B) 30,559 1,714 Total 1,211 16,276
Amount disclosed under other non-current assets - -
1. 
General and administrative expenses include allocation of expenses
Total 30,559 1,714
relating to certain corporate support services, such as legal, secretarial and
taxation services provided by the holding company to the Company.

385
 notes
forming part of the accounts Continued
2. Contribution charges refer to percentage of management fees paid to LIC
(` in ‘000)
and GIC as per agreement entered into with them.
Year ended Year ended
3. The detailed break-up of auditors’ remuneration is given in the table below. Particulars March 31, March 31,
2018 2017
Auditors’ remuneration: Employee cost1 (refer note 3.14.a) - 17,575
(` in ‘000) General and administrative expenses 678 2,120
Year ended Year ended Interest Income on deposits 1,529 -
Particulars March 31, March 31, 1. Employee cost for FY2017 includes remuneration paid to key management
2018 2017 personnel.
Statutory audit fees 75 400 3) 
Fellow subsidiaries and fellow entities, consolidated as per Accounting
Tax audit fees - 75 Standard 21, of the Holding Company.
Reimbursement of out of pocket expenses - 14 a) ICICI Venture Funds Management Company Limited
Total 75 489
(` in ‘000)
3.16 Earnings per share: At At
Particulars March 31, March 31,
(` in ‘000)
2018 2017
At At Equity investment1: 1 share of ` 10 -1 -1
Particulars March 31, March 31, Sale of investments (Class B shares of Emerging
2018 2017 India Fund) - 37
Net profit/(loss) after tax (` in ‘000) 691 (6,598) Receivables 13 37
Weighted average number of equity shares 1. Insignificant amount
outstanding during the year (units) 10,000,700 10,000,700
Basic and diluted loss per share 0.07 (0.66) 3.18 Segment reporting
 The Company is mainly organised into one business segment as asset
Face value per share (`) 10 10
management services. Hence primary segment disclosures are not applicable
to the Company. Secondary segment reporting does not require separate
3.17 Related party disclosures: disclosure as all activities of the Company are within India.
 Consequent to the mandatory Accounting Standard (AS) 18 issued by the
Institute of Chartered Accountants of India (ICAI) on ‘’Related party disclosures’’ 3.19 Deferred tax assets (net)
following persons are considered as related parties for the period ended March (` in ‘000)
31, 2018. At At
Sr. Name of the Related Party Nature of Relationship Particulars March 31, March 31,
No. 2018 2017
Depreciation 01 01
1. ICICI Bank Limited Holding Company Deferred tax liability (A) 0 0
2. ICICI Venture Funds Management Fellow Subsidiary Deferred tax assets
Company Limited Business loss 17,053 20,267
3. Sharad Malpani Key Management Personnel Provision for service tax input credit 2,301 2,664
Total deferred tax assets (B) 19,354 22,931
The following are the details of the transactions with the related parties: Net deferred tax assets recognised in the
1) Key management personnel financial statements (A)-(B)2 - -
 Amount paid to ICICI Bank Limited towards remuneration to the key 1. Insignificant amount
management personnel of the Company excluding the perquisite value 2. In absence of virtual certainty that sufficient future taxable income will be
on account of employee stock options exercised, during the year was Nil available, in the current year, the Company has recognised deferred tax
(FY2017: ` 2,749,988). The amount towards remuneration of Mr. Sharad assets only to the extent of deferred tax liability.
Malpani was Nil (FY2017: ` 2,749,988). 3.20 Other disclosures
2) Holding Company (Parent): ICICI Bank Limited a) There are no contingent liabilities or capital commitments at March 31,
2018 (March 31, 2017: Nil).
(` in ‘000)
b) There are no pending litigations on the Company’s financial position at
At At
Particulars March 31, 2018 (March 31, 2017: Nil).
March 31, March 31,
2018 2017 c) Total foreign exchange expenditure for the year ended March 31, 2018 is Nil
Share capital 100,007 100,007 (March 31, 2017: Nil).
Current account 686 1,714 d) There are no micro, small and medium enterprises, to which the Company
Fixed deposits 29,873 - owes dues, which are outstanding for more than 45 days at March 31, 2018.
Accrued interest 449 -
Payables (refer note 3.14.a) 148 369 e) Prior year comparatives have been regrouped and reclassified wherever
necessary to conform to the current year’s presentation.

Signatures to note nos. 2 to 3.20

As per our report of even date attached For and on behalf of the Board of Directors


For B S R & Co. LLP Vijay Chandok N. L. Bhatia
Chartered Accountants DIN: 01545262 DIN: 00021847
ICAI Firm Registration no.: Chairman Director
101248W/W–100022


Venkataramanan Vishwanath Vaishali Mehta Vivek Ranjan
Partner Chief Financial Officer Company Secretary
Membership No: 113156

Place: Mumbai
Date: April 16, 2018

386
 ICICI TRUSTEESHIP SERVICES LIMITED
19TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors Auditors Registered Office
P. Sanker, Chairman Khandelwal Jain & Co. ICICI Bank Towers
DIN : 00008187 Chartered Accountants Bandra- Kurla Complex
Sanjay Chougule (Registration No.: 105049W) Mumbai- 400 051
DIN : 00073782
Supritha Shetty Vivek Ranjan
DIN : 02101473 Compliance Officer

directors’ report
to the members
Your Directors have pleasure in presenting the Nineteenth Annual Report of the 139 (2) of the Companies Act, 2013 related to rotation of auditors at the end of five
Company with the audited statement of accounts for the year ended March 31, 2018. years is not applicable to the Company, the Board through a circular resolution passed
on June 11, 2018 has proposed the appointment of P. D. Jhaveri & Co., Chartered
FINANCIAL HIGHLIGHTS Accountants, Mumbai as the Statutory Auditors of the Company to audit the accounts
The summary of the financial results for the year under review is as follows of the Company from FY2019 to FY2023. The Company has received confirmation
` in ‘000 under Section 139 from P. D. Jhaveri & Co. that their appointment falls within the limits
Particulars Fiscal 2017 Fiscal 2018 specified under Section 141 of the Act and are not disqualified to be appointed as
Statutory Auditor. The Members are requested to consider the appointment.
Gross Income 837 823
Profit Before Tax 774 757 The report of the Statutory Auditors along with financial statements and notes to
Provision for tax 165 156 Accounts is enclosed to this report. There are no qualifications or adverse remarks
Profit After Tax 609 601 in the Auditors’ Report.
Transfer to Reserves Nil Nil THE BOARD OF DIRECTORS
OPERATIONAL REVIEW At March 31, 2018, the Board of Directors consisted of three members. During the
The main object of the Company is to act as trustee for mutual funds, offshore funds, year, there were four Board meetings on April 18, 2017, July 14, 2017, October 11,
pension funds, provident funds, venture capital funds, insurance funds, collective 2017 and January 22, 2018.
or private investment schemes, employee welfare or compensation schemes The names of the Directors and their attendance at Board Meetings during the year
among others and to devise various schemes for dealing with or in connection with are set out in the following table:
aforesaid purposes including raising funds in any manner in India or abroad and to
deploy funds so raised and earn reasonable returns on their investments and to act Name of Director Board Meetings attended during the year
as trustees generally for any purpose and to acquire, hold, manage, dispose of all or P. Sanker, Chairman 4/4
any securities or money market instruments or property or assets and receivables or Sanjay Chougule 4/4
financial assets or any other assets or property. Supritha Shetty 3/4
The Company continues to act as the trustee of Equity Fund, Eco-Net Internet and DECLARATION BY INDEPENDENT DIRECTORS
Technology Fund, Emerging Sectors Trust, ICICI Centre for Elementary Education, ICICI
Centre for Child Health and Nutrition, Reconciliation Shares Trust, ICICI Foundation for The provisions of Section 149(4) of the Companies Act 2013, requiring the
Inclusive Growth and Disha Trust. In terms of the Scheme of Amalgamation of ICICI appointment of Independent Directors, applies only to listed companies. Your
Limited, ICICI Capital Services Limited and ICICI Personal Financial Services Limited Company being not listed, the provisions do not apply. In addition Section 149 of the
(Transferor Companies) with ICICI Bank Limited (Transferee Company), the Company is Companies Act 2013 excludes a nominee director from the definition of independent
holding the shares pledged in favour of one or more Transferor Companies in trust for director. All the directors of your Company are nominee directors. Therefore,
the benefit of persons for whose benefit the pledge had been created. declaration has not been obtained from any of the directors.

DIVIDEND EXTRACT OF ANNUAL RETURN

Your Directors, in order to conserve reserves, do not recommend payment of
dividend for the year ended March 31, 2018.
SECTION 186 PARTICULARS OF LOANS, GUARANTEE OR INVESTMENT
During the year under review, the Company has not advanced any loan/given guarantee.
Your Company has not purchased the securities of any other body corporate,
exceeding sixty percent of its paid-up share capital, free reserves and securities
premium account or one hundred percent of its free reserves and securities premium
account, whichever is more. Hence, this section shall not be applicable.
PUBLIC DEPOSITS
During the year under review, the Company has not accepted deposits under Section
73 of the Companies Act, 2013 and there is no outstanding amount as on the Balance
Sheet date.
Pursuant to Section 92(3) of the Companies Act, 2013 (‘the Act’) and Rule 12(1) of the
Companies (Management and Administration) Rules, 2014, extract of annual return
is annexed as Annexure 1.
DETAILS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
The provisions of Section 134 (3)(m) of the Companies Act, 2013 relating
to conservation of energy and technology absorption do not apply to the
Company.
During the year under review, pursuant to Section 134 (3) (m) read with Rule 8 (3) of
Companies (Accounts) Rules, 2014, there was no income or expenditure in foreign
currency during the period under review.
RELATED PARTY TRANSACTIONS

DIRECTORS
In terms of provisions of the Articles of Association of the Company, Sanjay
Chougule will retire at the forthcoming Annual General Meeting and being eligible,
offers himself for re-appointment.
During the year under review, the Company has entered into contracts/arrangements
with related parties at arm’s length basis.
The details of transactions entered into with the Related Parties are enclosed as
Annexure 2- Form AOC-2.

AUDITORS INTERNAL FINANCIAL CONTROLS

M/s. Khandelwal Jain & Co., Chartered Accountants, Mumbai, will retire as the statutory The internal financial controls with reference to the Financial Statements are
auditors of the Company at the ensuing Annual General Meeting. Although Section adequate with the size and nature of business of the Company.

387
 directors’ report
to the Members of ICICI Trusteeship Services Limited
HOLDING AND SUBSIDIARIES
Your Company continues to be a subsidiary of ICICI Bank Limited. Further, the
Company has no subsidiaries, associates or joint ventures.
CHANGE IN NATURE OF BUSINESS
During the year under review, there is no change in the nature of business of the
Company.
ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS OF THE COMPANY
There are no orders passed by the Regulators or Courts or Tribunals impacting the
going concern status of the Company.
PERSONNEL AND OTHER MATTERS
Since your Company does not have any employees, Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are not applicable.
true and fair view of the state of affairs of the Company at the end of the financial
year and of the profit and loss of the Company for that period;
3. they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
4. they have prepared the annual accounts on a going concern basis; and
5. they have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating
effectively.
ACKNOWLEDGEMENTS
Your Company is grateful to the regulatory authorities for their valuable guidance
and support and wishes to express sincere appreciation for their continued
co-operation and assistance. We look forward to their continued support in future.

As there are no employees on the rolls of the Company, the information required The Company would also like to express its gratitude for the support and guidance
under Sexual Harassment of Women at Workplace (Prevention, Prohibition & received from ICICI Bank, the holding Company and also from other group
Redressal) Act, 2013 is not applicable. companies.

DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 134 (3) (c) read with Section 134 (5) of the Companies Act, 2013,
For and on behalf of the Board
your Directors confirm that:
1. in the preparation of the annual accounts, the applicable accounting standards
had been followed along with proper explanation relating to material departures; P. SANKER
DIN: 00008187
2. they have selected such accounting policies and applied them consistently and
Mumbai, April 17, 2018 Chairman
made judgments and estimates that are reasonable and prudent so as to give a

Annexure 1
Form No. MGT-9 II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
EXTRACT OF ANNUAL RETURN  All the business activities contributing 10 % or more of the total turnover of the
as on the financial year ended on 31st March, 2018 of company shall be stated:
ICICI TRUSTEESHIP SERVICES LIMITED
Sl. Name and Description of main NIC Code of the % to total
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the
No. products / services Product/ service turnover of the
Companies (Management and Administration) Rules, 2014]
company
I. REGISTRATION AND OTHER DETAILS 1. Trusteeship services 66190 100%
i) CIN: U65991MH1999PLC119683
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
ii) Registration Date: 29/04/1999
iii) Name of the Company: ICICI Trusteeship Services Limited Sl. Name and address CIN/GLN Holding/ % of Applicable
No. of the Company Subsidiary/ shares Section
iv) Category / Sub-Category of the Company: Company limited by shares
Associate held
v) Address of the Registered Office and contact details:
1. ICICI Bank Limited L65190GJ1994 Holding 100% 2(46)
C-23, G Block, BKC, Bandra East, Mumbai - 400051
PLC021012
vi) Whether listed company: No
vii) Name, Address and contact details of Registrar & Transfer Agents (RTA),
if any: 3i Infotech Limited, Tower 5, 3rd Floor, Block B, International
Infotech Park, Vashi Railway Station, Vashi, Navi Mumbai - 400 703,
www.3i-infotech.com, Contact No.:22 6792 8034

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding
Sl. Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
No. Demat Physical Total % of Total Demat Physical Total % of Total during the
Share Share year
A. Promoters
(1) Indian
(a) Individual/HUF - - - - - - - - -
(b) Central Govt - - - - - - - - -
(c) State Govt(s) - - - - - - - - -
(d) Bodies Corp. - - - - - - - - -
(e) Banks / FI * 49,400 600 50,000 100 49,400 600 50,000 100 -
(f) Any Other…. - - - - - - - - -
Sub-total (A) (1):- 49,400 600 50,000 100 49,400 600 50,000 100 -
(2) Foreign
(a) NRIs - Individuals - - - - - - - - -
(b) Other - Individuals - - - - - - - - -
(c) Bodies Corp. - - - - - - - - -
(d) Banks / FI - - - - - - - - -
(e) Any Other…. - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding of Promoter (A) = (A) 49,400 600 50,000 100 49,400 600 50,000 100 -
(1)+(A)(2)

388
directors’ report
Continued

Sl. Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
No. Demat Physical Total % of Total Demat Physical Total % of Total during the
Share Share year
B. Public Shareholding
1. Institutions
(a) Mutual Funds - - - - - - - - -
(b) Banks / FI - - - - - - - - -
(c) Central Govt - - - - - - - - -
(d) State Govt(s) - - - - - - - - -
(e) Venture Capital Funds - - - - - - - - -
(f) Insurance Companies - - - - - - - - -
(g) FIIs - - - - - - - - -
(h) Foreign Venture Capital Funds - - - - - - - - -
(i) Others (specify) - - - - - - - - -
Sub-total (B)(1):- - - - - - - - - -
2. Non-Institutions
(a) Bodies Corp.
(i) Indian - - - - - - - - -
(ii) Overseas - - - - - - - - -
(b) Individuals
(i) Individual shareholders holding nominal share - - - - - - - - -
capital upto ` 1 lakh
(ii) Individual shareholders holding nominal share - - - - - - - - -
capital in excess of ` 1 lakh
(c) Others (specify)
Sub-total (B)(2):- - - - - - - - - -
Total Public Shareholding (B)=(B)(1)+(B)(2) - - - - - - - - -
C. Shares held by Custodian for GDRs & ADRs
Grand Total (A+B+C) 49,400 600 50,000 100 49,400 600 50,000 100 -

* Beneficial Interest of 700 shares is held by the Bank through the following entities:
Folio No Name of the shareholder No of shares
9000462 ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED 100
ITR0012 ICICI INVESTMENT MANAGEMENT COMPANY LIMITED 200
ITR0013 ICICI HOME FINANCE COMPANY LIMITED 100
ITR1002 ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED 100
ITR1004 ICICI SECURITIES LIMITED 100
ITR1005 ICICI SECURITIES PRIMARY DEALERSHIP LIMITED 100
Total 700

(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in share
No. No. of % of total %of Shares No. of % of total %of Shares holding during the
Shares Shares Pledged / Shares Shares Pledged / year
of the encumbered to of the encumbered to
company total shares company total shares
1. ICICI Bank Limited 50,000 100 - 50,000 100 - -

(iii) Change in Promoters’ Shareholding (No change)

Sl. Particulars Shareholding at the beginning of the year Cumulative Shareholding during the year
No. No. of Shares % of total Shares of the No. of Shares % of total Shares of the
company company
At the beginning of the year - - - -
Date wise Increase / Decrease in Promoters - - - -
Shareholding during the Year specifying the
reasons for increase / decrease
(e.g. allotment / transfer / bonus/ sweat equity
etc):
At the end of the year - - - -

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): (Not Applicable)
Sl. For Each of the Top 10 Shareholders Shareholding at the beginning of the year Cumulative Shareholding during the year
No. No. of Shares % of total Shares of the No. of Shares % of total Shares of the
company company
At the beginning of the year - - - -
Date wise Increase / Decrease in Share holding - - - -
during the year specifying the reasons for
increase / Decrease (e.g. allotment / transfer /
bonus / sweat equity etc):
At the End of the year (or on the date of - - - -
separation, if separated during the year)

389
 directors’ report
to the Members of ICICI Trusteeship Services Limited
(v) Shareholding of Directors and Key Managerial Personnel: (Not Applicable)
Sl. For Each of the Directors and KMP Shareholding at the beginning of the year Cumulative Shareholding during the year
No. No. of Shares % of total Shares of the No. of Shares % of total Shares of the
company company
At the beginning of the year The Directors of the Company do not hold any shares in the Company. The provisions related to Key Managerial
Date wise Increase / Decrease in Shareholding Personnel are not applicable to the Company.
during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
At the end of the year

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding Unsecured Loans Deposits Total Indebtedness
deposits
Indebtedness at the beginning
of the financial year
i) Principal Amount - - - -
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ii+iii) - - - -
Change in Indebtedness during the financial year - - - -
• Addition
• Reduction
Net Change - - - -
Indebtedness at the end of the financial year
i) Principal Amount - - - -
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ii+iii) - - - -

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Not Applicable)
Sl. Particulars of Remuneration Name of Directors Total Amount
No. in `
1. Gross salary
(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961 - - - -
(b) Value of perquisites under Section 17(2) of the Income-tax Act, 1961 - - - -
(c) Profits in lieu of salary under Section 17(3) of the Income Tax Act, 1961 - - - -
2. Stock Option - - - -
3. Sweat Equity - - - -
4. Commission - - - -
- as % of profit
- others, specify…
5. Others, please specify - - - -
Total (A) - - - -
Ceiling as per the Act - - - -

B. Remuneration to other directors:

Sl. Particulars of Remuneration Name of Directors Total Amount
No. in `
1. Independent Directors
• Fee for attending board / committee meetings - - - -
• Commission - - - -
• Others, please specify - - - -
Total (1) - - - -
2. Other Non-Executive Directors
• Fee for attending board / committee meetings - - - -
• Commission - - - -
• Others, please specify - - - -
Total (2) - - - -
Total (B)=(1+2) - - - -
Total Managerial Remuneration - - - -
Overall Ceiling as per the Act - - - -

390
directors’ report
Continued
C. Remuneration to Key Managerial Personnel other than MD/ Manager / WTD: (Not Applicable)
Sl. Particulars of Remuneration Key Managerial Personnel
No. CEO Company CFO Total Amount
Secretary in `
1. Gross salary
(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961 - - - -
(b) Value of perquisites under Section 17(2) of Income-tax Act, 1961 - - - -
(c) Profits in lieu of salary under Section 17(3) Income-tax Act, 1961 - - - -
2. Stock Option - - - -
3. Sweat Equity - - - -
4. Commission
- as % of profit - - - -
- others, specify… - - - -
5. Others, please specify - - - -
Total - - - -

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Description Details of Penalty Authority [RD/ NCLT/ Appeal made, if any
Companies Act / Punishment/ COURT] (give Details)
Compounding fees
imposed
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -

Annexure 2
Form No. AOC-2 (f) date(s) of approval by the Board
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of (g) Amount paid as advances, if any:
the Companies (Accounts) Rules, 2014)
(h) Date on which the special resolution was passed in general meeting as
Form for disclosure of particulars of contracts/arrangements entered into by required under first proviso to Section 188
the company with related parties referred to in sub-section (1) of Section 188 of
the Companies Act, 2013 including certain arms length transactions under third 2. Details of material contracts or arrangement or transactions at arm’s length
proviso thereto basis

1. Details of contracts or arrangements or transactions not at arm’s length basis:
N.A.
(a) Name(s) of the related party and nature of relationship
(b) Nature of contracts/arrangements/transactions
(c) Duration of the contracts / arrangements/transactions
(a) Name(s) of the related party and nature of relationship: Refer “Note 1”
(b) Nature of contracts/arrangements/transactions: Refer “Note 1”
(c) Duration of the contracts / arrangements/transactions: Refer “Note 1”
(d) Salient terms of the contracts or arrangements or transactions including
the value, if any: Refer “Note 1”

(d) Salient terms of the contracts or arrangements or transactions including (e) Date(s) of approval by the Board, if any: 18/04/2017
the value, if any (f) Amount paid as advances, if any: Nil
(e) 
Justification for entering into such contracts or arrangements or
transactions

Note 1:
Name of the related party Nature of relationship Nature of contracts/ arrangements/ Duration of the Terms of contracts/ Value (` in ’000)
transactions contracts arrangements/
transactions
ICICI Bank Limited Holding Company Trusteeship fees - Fees for trusteeship 230
services
ICICI Venture Fund Fellow Subsidiary Trusteeship fees - Fees for trusteeship 150
Management Company services
Limited
ICICI Bank Limited Holding Company Fixed deposits placed with ICICI Bank Limited Different maturities Interest at applicable rate 2,459
ICICI Bank Limited Holding Company Interest income on fixed deposits - Interest at applicable rate 165

P. SANKER
DIN: 00008187
Mumbai, April 17, 2018 Chairman

391
 independent auditors’ report
to the members of ICICI Trusteeship Services Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ICICI
TRUSTEESHIP SERVICES LIMITED (“the Company”), which comprises the Balance
Sheet as at March 31, 2018, the Statement of Profit and Loss, Cash Flow Statement
for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Standalone Financial
Statements
Management is responsible for the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the Accounting
Standards notified under Section 133 of the Companies Act, 2013 read with Rule
7 of the Companies (Accounts) Rules, 2014. This responsibility includes design,
implementation and maintenance of adequate internal controls relevant to the
preparation and presentation of the standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. We conducted our audit in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants of India. Those Standards
require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the standalone financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence, on a test basis,
about the amounts and the disclosures in the standalone financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the standalone financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the Company’s preparation and fair presentation of
the standalone financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of
the accounting estimates made by Management, as well as evaluating the overall
presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information
required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company as at March
31, 2018;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
392
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”)
issued by the Central Government of India in terms of sub-section (11) of the
Section 143 of the Act, we give in the Annexure A a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. We have inquired into the matters specified under Section 143(1) and based on
the information and explanations given to us, there is no matter to be reported
under this section.
3. As required by Section 143(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply with
the Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) In our opinion and based on the information and explanations given to us,
there are no financial transactions or matters which have any adverse effect
on the functioning of the company.
f) On the basis of the written representations received from the directors as
on 1st April, 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2018 from being appointed as a
director in terms of Section 164 (2) of the Act.
g) There is no qualification, reservation or adverse remark relating to the
maintenance of accounts and other matters connected therewith.
h) The company has adequate internal financial controls system in place and
there is an operating effectiveness of such controls. A report giving our
responsibilities and opinion has been annexed as Annexure-B herewith.
i) Such other matters as are prescribed by Companies (Audit and Auditors)
Rules, 2014 namely:
i. the Company does not have any pending litigations which would impact
its financial position.
ii. the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
iii. there are no amounts which are required to be transferred to the Investor
Education and Protection Fund by the Company.
For KHANDELWAL JAIN & CO.
Chartered Accountants
ICAI Firm Registration No. 105049W
CHIRAG DOSHI
Place : Mumbai Partner
Date : April 17, 2018 Membership no.: 119079
annexure A to the auditors’ report
Statement on the matters specified in paragraph 3 and 4 of offer or further public offer (including debt instruments) nor have any fresh
term loans been taken by the company during the year. Hence the provisions of
the Order. clause (ix) are not applicable to the company.
(Referred to in Paragraph 1 of our report of other Legal and
Regulatory requirement of even date) 10. According to the information and explanations given to us, no fraud on or by the
Company was noticed or reported during the year.

1. The Company does not have any fixed assets and hence paragraph 3 (i) of the
Order is not applicable.
2. The activities of the Company and the nature of its business do not involve the
use of inventory. Accordingly, paragraph 3 (ii) of the Order is not applicable.
11. According to the information and explanation given to us and the books of
accounts verified by us, the Managerial remuneration has been paid or provided
in accordance with the requisite approvals mandated by the provisions of
Section 197 read with schedule V to the Companies Act.

3. The Company has neither granted nor taken any loans, secured or unsecured
to/ from companies, firms, limited liability partnerships or other parties covered
in the register maintained under Section 189 of the Companies Act, 2013.
Accordingly, paragraph 3 (iii) of the Order is not applicable.
4. In our opinion and according to the information and explanations given to us,
the Company has, in respect of loans, investments, guarantees, and security
provisions, complied with Section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public and hence
paragraph 3 (v) of the Order is not applicable.
12. The Company is not a Nidhi Company, hence the provision of clause (xii) are not
applicable to the company.
13. All transactions with related parties are in compliance with Section 177 and 188
of Companies Act, 2013 and the details have been disclosed in the Standalone
Financial Statements as required by the applicable accounting standards.
14. According to the information and explanation given to us, the Company during
the year has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures, hence the provision of clause (xiv) are
not applicable to the company.

15. According to the information and explanation given to us and the books
6. According to the information and explanations given to us, the Central of accounts verified by us, the Company has not entered into any non-cash
Government has not prescribed the maintenance of cost records under transactions with directors or persons connected with him.
sub-section (1) of Section 148 of the Act.

16. The company is not required to be registered under Section 45-IA of the Reserve
7. In respect of statutory dues: Bank of India Act, 1934.
(a) According to the information and explanations given to us, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees’ State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, Cess and other material statutory dues wherever applicable,
with the appropriate authorities. For KHANDELWAL JAIN & CO.
Chartered Accountants
(b) According to the information and explanation given to us, there are no
cases of non-deposit of disputed Income Tax, Sales Tax, Wealth Tax, ICAI Firm Registration No. 105049W
Service Tax, Custom Duty, Excise Duty, Value Added Tax and Cess with
the appropriate authority.
CHIRAG DOSHI
Place : Mumbai Partner
8. The Company has not borrowed any amounts from banks, financial institutions
or by issue of debentures. Accordingly paragraph 3 (viii) of the Order is not Date : April 17, 2018 Membership no.: 119079
applicable.

9. As per information given to us, no money was raised by way of initial public

393
annexure to the independent auditors’ report
Annexure B to the Independent Auditor’s Report of even
date on the standalone financial statements of ICICI
Trusteeship Services Limited as on 31st March, 2018
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section
143 of the Companies Act, 2013 (“The Act”)
To the members of ICICI Trusteeship Services Limited
We have audited the internal financial controls over financial reporting of ICICI
TRUSTEESHIP SERVICES LIMITED (“the Company”), as of March 31, 2018, in
conjunction with our audit of the standalone financial statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The company’s Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation, and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to the Company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the “Guidance Note”) and the Standards on auditing, to the
extent applicable to an audit of internal financial controls, both issued by the Institute
of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial control system over financial reporting and their
operating effectiveness. Our audit of internal financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing
the risk that material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the standalone financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting.
394
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding reliability of financial reporting and the
preparation of standalone financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
standalone financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the company’s assets that could have
a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial
Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be
detected. Also projections of any evaluation of the internal financial controls over
financial reporting may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2018, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India.
For KHANDELWAL JAIN & CO.
Chartered Accountants
ICAI Firm Registration No. 105049W
CHIRAG DOSHI
Place : Mumbai Partner
Date : April 17, 2018 Membership no.: 119079
balance sheet statement of profit and loss
at March 31, 2018 for the year ended March 31, 2018

(` in ‘000s) (` in ‘000s)
Note At At Note Year ended Year ended
No. March 31, 2018 March 31, 2017 No. March 31, 2018 March 31, 2017

EQUITY AND LIABILITIES Income

Shareholders' funds Revenue from operations 2L 420 350

Share capital 2A 500 500 Other income 2M 403 487

Reserves and surplus 2B 6,029 5,428 Total revenue (I) 823 837

6,529 5,928 Expenses

Non-current liabilities Auditor's remuneration - statutory audit fees 22 25

Other long-term liabilities 2C - 17 Professional fees 26 31

- 17 Miscellaneous expenses 17 6

Current liabilities Profession tax 1 1

Other current liabilities 2D 106 51 Total expenses (II) 66 63

106 51 PROFIT BEFORE TAX (I)-(II) 757 774

TOTAL 6,635 5,996 Current tax 161 165

ASSETS Excess provision of earlier year written back (5) -

Non-current assets PROFIT FOR THE PERIOD/YEAR 601 609

Non-current investments 2E 3,614 2,457 Earnings per share - Basic and Diluted 2Q 12.02 12.18

Long-term loans and advances 2F 8 10 Significant Accounting Policies and Notes 1&2
to Accounts
Other non-current assets 2G 278 82

3,900 2,549

Current assets

Current investments 2H 160 800

Trade receivables 2I 54 -

Cash and bank balances 2J 2,455 2,552

Other current assets 2K 66 95

2,735 3,447

TOTAL 6,635 5,996

Significant Accounting Policies and Notes 1&2

to Accounts

As per our Report of even date For and on behalf of the Board of Directors

For KHANDELWAL JAIN & CO. P. Sanker Sanjay Chougule

Chartered Accountants DIN: 00008187 DIN: 00073782
ICAI Firm Registration no.: 105049 W Chairman Director

Chirag Doshi Supritha Shetty Vivek Ranjan

Partner DIN: 02101473 Compliance Officer
Membership No.: 119079 Director

Place: Mumbai
Date: April 17, 2018

395
 cash flow statement
for the year ended March 31, 2018

(` in ‘000s)
Year ended Year ended
March 31, 2018 March 31, 2017

A) Cash Flow from operating activities :

Profit before taxation 757 774
Adjustments for:
Interest on deposits with banks (165) (180)
Profit on sale of investments (238) (307)
Operating profit before working capital changes 354 287
Adjustments for:
Trade payables and other liabilities 37 9
Trade and other receivables (25) 155
Cash generated from operations 366 451
Refund/(Payment) of direct taxes (154) (180)
Net cash flow from operating activities - A 212 271

B) Cash flow from investing activities:

Interest on deposits with banks 165 180
Sale of Investments 1,038 1,346
Purchase of investments (1,316) (1,495)
Investment in fixed deposits (24) (153)
Net cash from investing activities - B (137) (122)

C) Cash flow from financing activities: - -

Net cash used in financing activities - C - -
Net Increase / (Decrease) in cash and bank balances (A+B+C) 75 149
Cash and bank balances at beginning of the year 388 239
Cash and bank balances at end of the year 463 388

Notes to Cash Flow Statement

1 Components of cash and bank balances include bank balances in current and savings deposit accounts.
2 The cash flow statement has been prepared in accordance with the requirement of Accounting Standard (AS -3) “Cash Flow Statements” issued by the Institute of Chartered
Accountants of India.
3 Figures of the previous year have been regrouped, wherever necessary, to correspond with current year’s figures.

As per our Report of even date For and on behalf of the Board of Directors

For KHANDELWAL JAIN & CO. P. Sanker Sanjay Chougule

Chartered Accountants DIN: 00008187 DIN: 00073782
ICAI Firm Registration no.: 105049 W Chairman Director

Chirag Doshi Supritha Shetty Vivek Ranjan

Partner DIN: 02101473 Compliance Officer
Membership No.: 119079 Director

Place: Mumbai
Date: April 17, 2018

396
notes
forming part of the accounts
Significant Accounting Policies and Notes to Accounts 2. Notes to accounts for the year ended March 31, 2018

1. Significant Accounting Policies A. Share capital

(` in ‘000s)
A. Overview
Particulars At At

ICICI Trusteeship Services Limited (‘the Company’) was incorporated in March 31, 2018 March 31, 2017
Mumbai, India. The Company’s principal activity is to act as trustee for funds.
Authorised:
B. Basis of preparation of financial statements 1,000,000 (March 31, 2017: 1,000,000) 10,000 10,000
equity shares of ` 10 each
The financial statements are prepared in accordance with Generally Accepted
Accounting Principles in India (‘Indian GAAP’) under the historical cost Issued, subscribed and fully paid up
convention on accrual basis. Indian GAAP comprises relevant provisions of 50,000 (March 31, 2017: 50,000) equity shares 500 500
Companies Act, 2013 and the Accounting Standards notified under Section of ` 10 each, fully paid up
133 of the Companies Act, 2013 read together with Rule 7 of the Companies Total 500 500
(Accounts) Rules, 2014 to the extent applicable and practices generally
prevalent in the industry in India. Accounting policies have been consistently Reconciliation of the number of shares outstanding at the beginning and at the
applied except where a newly issued accounting standard is initially adopted end of the period/year
or a revision of an existing accounting standard requires a change in the Particulars At At
accounting policy hitherto in use. March 31, 2018 March 31, 2017
C. Use of estimates Opening balance 50,000 50,000
The preparation of the financial statements in conformity with Indian GAAP Issued/(redeemed) during the period/year - -
requires the management to make estimates and assumptions that affect the Closing balance 50,000 50,000
reported balances of assets and liabilities and disclosures relating to contingent
assets and liabilities as at the date of the financial statements and reported The company has only one class of equity shares referred to as equity shares
amounts of income and expenses during the period. Examples of such estimates having a par value of ` 10. Each holder of equity shares is entitled to one vote
include provisions for doubtful debts, and income taxes. Actual results could per share.
differ from these estimates. Difference between the actual results and estimates All the above equity shares are held by ICICI Bank Limited (the holding company)
are recognised in the period in which the results are known/materialise. and its nominees.
D. Revenue recognition B. Reserves and surplus
Trusteeship fees, interest income and other income are accounted on accrual (` in ‘000s)
basis. Dividend is accounted as and when the right to receive the dividend is Particulars At At
established. March 31, 2018 March 31, 2017
E. Income taxes Surplus in profit and loss account
Balance at the beginning of the period/year 5,428 4,819
Income tax expense represents current tax only and it is determined in
accordance with the provisions of the Income Tax Act, 1961.Tax expense for the Add: Profit/(Loss) during the period/year 601 609
year is on the basis of current tax since there are no timing differences resulting Balance at the end of the period/year 6,029 5,428
into tax expense/tax saving on deferred tax basis.
C. Other long-term liabilities
F. Earnings per share (` in ‘000s)
In accordance with the Accounting Standard 20 on ‘Earnings Per Share’ issued Particulars At At
by ICAI, basic earnings per share is computed using the weighted average March 31, 2018 March 31, 2017
number of shares outstanding during the year.
(i) Received from erstwhile ICICI Limited - 10
G. Investments towards corpus fund1

Investments are classified into current investments and non-current (ii) Interest accrued on above - 6
investments. Current investments are carried at lower of the cost and fair value. (iii) Received from ICICI Prudential Life - 1
Non-current investments are carried at cost. Provision for diminution is made Insurance Company Limited towards
for non-current investments only if, in the opinion of the management, such a corpus fund2
decline in the value of investments is other than temporary. Total - 17

H. Contingent liabilities 1) 
The Company in the earlier years, in terms of the Indenture of Trust,
received corpus fund for setting up ICICI Securities Fund of ` 10,000 from
The Company estimates the probability of any loss that might be incurred on
erstwhile ICICI Limited. This amount along with interest thereon, is reflected
outcome of contingencies on the basis of information available up to the date
in “Note – I: Cash & cash equivalents, under the head Bank balances with
on which the financial statements are prepared. A provision is recognised
scheduled banks – Saving accounts”. During Q1-2018, the saving account
when an enterprise has a present obligation as a result of a past event and it is
was closed and the corpus fund and interest thereon was refunded to ICICI
probable that an outflow of resources will be required to settle the obligation,
Bank, being the settlor of ICICI Securities Fund.
in respect of which a reliable estimate can be made. Provisions are determined
based on management estimates of amounts required to settle the obligation 2)  
The Company in the earlier years, in terms of the Indenture of Trust,
at the balance sheet date, supplemented by experience of similar transactions. received corpus fund for issue of life insurance, on the life of life assured
These are reviewed at each balance sheet date and adjusted to reflect the vide their endowment policy, “ICICI Pru save n protect” of ` 1,000 from
current management estimates. In cases where the available information ICICI Prudential Life Insurance Company Limited which is forming part of
indicates that the loss on the contingency is reasonably possible but the amount “Note – I: Cash & cash equivalents, under the head Bank balances with
of loss cannot be reasonably estimated, a disclosure to this effect is made in scheduled banks – Current accounts”. During Q2-2018, the current account
the financial statements. In case of remote possibility neither provision nor was closed and the corpus fund was refunded to ICICI Prudential Life
disclosure is made in the financial statements. The Company does not account Insurance Company Limited, being the settlor of ICICI Pru save n protect.
for or disclose contingent assets, if any.
D.    Other current liabilities
(` in ‘000s)
Particulars At At
March 31, 2018 March 31, 2017
Provision for audit fees 22 25
Miscellaneous liabilities 25 26
SGST payable (net of input credit) 16 -
CGST payable (net of input credit) 16 -
IGST payable (net of input credit) 27 -
Total 106 51

397
 notes
forming part of the accounts Continued
E.     Non-current investments H.    Current investments
(` in ‘000s) (` in ‘000s)
Particulars At At Particulars (valued at lower of cost and At At
March 31, 2018 March 31, 2017 market value) March 31, 2018 March 31, 2017
1) Investments in Equity Instruments Investments in Mutual Funds
(A) Non trade investment (equity shares 16,000 units of ICICI Prudential FMP Series 160 -
- quoted) 76, Plan Y (March 31, 2017: Nil units) of
First source Solutions Limited- 100 ` 10 each
shares of ` 10 each (March 31, 2017: Nil units of ICICI Prudential FMP Series 74, - 550
100 shares of ` 10 each) Plan I (March 31, 2017: 55,000 units) of
(Market value at March 31, 2018: 1 1 ` 10 each
` 5,300; March 31, 2017: ` 4,170) Nil units of ICICI Prudential FMP Series 73, - 250
Total (A) 1 1 Plan T (March 31, 2017: 25,000 units) of
` 10 each
(B) 
Non trade investment (equity shares -
un-quoted) Total 160 800

ICICI Venture Funds Management -* -* NAV of the portfolio 202 1,024

Company Limited: *1 share of ` 10 each
(March 31, 2017: 1 share of ` 10 each) I. Trade receivables
(` in ‘000s)
Total (B) - -
Particulars At At
Total non trade investments (A+B) 1 1
March 31, 2018 March 31, 2017
Total investments in Equity Instruments (1) 1 1
Trusteeship fees 54 -
2) Investments in Mutual Funds
Total 54 -
Nil units of ICICI Prudential FMP - 160
Series 76, Plan Y (March 31, 2017: J. Cash and bank balances
16,000 units) of ` 10 each (` in ‘000s)
2,811.621 units of Flexible Income 800 800 Particulars At At
Plan (March 31, 2017: 2,811.621 units) March 31, 2018 March 31, 2017
of ` 284.5334 each
(A) Cash and cash equivalents
519.780 units of Flexible Income Plan 150 150
(March 31, 2017: 519.780 units) of Current accounts 463 371
` 288.5836 each Saving accounts - 17
69,020.776 units of ICICI Prudential 1,346 1,346  ixed deposits (with original maturity upto
F - -
Long Term Direct Plan (March 31, 2017: 3 months)
69,020.776 units) of ` 19.5046 each Total (A) 463 388
28,632.101 units of ICICI Prudential 600 - (B) Other bank balances
Long Term Direct Plan (March 31,
2017: Nil units) of ` 20.9555 each  ixed deposits (with original maturity more
F 2,270 2,246
than 3 months)
32,842.659 units of ICICI Prudential 717 -
Long Term Direct Plan (March 31, Total (B) 2,270 2,246
2017: Nil units) of ` 21.8125 each Total (A+B) 2,733 2,634
Total Investments in Mutual Funds (2) 3,613 2,456 Amount disclosed under other non-current (278) (82)
NAV of the portfolio 4,018 2,663 assets*

Total Non-current investments (1+2) 3,614 2,457 Total 2,455 2,552

*Fixed deposit with residual maturity more than 12 months have been disclosed
F.     Long-term loans and advances under non-current asset
(` in ‘000s)
K. Other current assets
Particulars At At
(` in ‘000)
March 31, 2018 March 31, 2017
Advance payment of income tax 8 10 Particulars At At
(net of provision for tax) March 31, 2018 March 31, 2017

Total 8 10 Interest accrued on fixed deposits 66 95

Total 66 95
G.     Other non-current assets
(` in ‘000s) L. Revenue from operations
(` in ‘000s)
Particulars At At
March 31, 2018 March 31, 2017 Particulars For the year For the year
Fixed deposits 278 82 ended ended
(residual maturity above 12 months) March 31, 2018 March 31, 2017

Total 278 82 Trusteeship fees 420 350

Total 420 350

398
notes
forming part of the accounts Continued
M. Other income iii) Transactions with related parties, as identified by the management for the year
(` in ‘000s) ended March 31, 2017 and outstanding balance at March 31, 2017.
(` in ‘000s)
Particulars For the year For the year
ended ended Nature of transaction Holding Fellow subsidiaries/ Total
March 31, 2018 March 31, 2017 company entities
Interest on deposits with banks 165 180 ICICI Bank1 IVFMCL2 IPLICL
Trusteeship fees 160 150 - 310
Profit on sale/redemption of investments 238 307
Interest on deposits with banks 180 - - 180
Total 403 487 Outstanding balances
Trusteeship fees receivable - - - -
N. 
Reporting as per Accounting Standard 18 (AS 18) on “Related Party Bank balances 388 - - 388
Disclosures” Fixed deposits 2,246 - - 2,246
i) Names of related parties as identified by the management and nature of Accrued interest on deposits 95 - - 95
relationship are as follows: Investments (* 1 share of ` 10) - -* -*
Sl. Nature of relationship Name of party Corpus fund (including interest) 16 - 1 17
No. Share capital 500 - - 500
1. Holding company ICICI Bank Limited 1. Settlor for ICICI Bank Pledged Shares Trust, ICICI Foundation for Inclusive
2. Fellow subsidiaries and fellow • ICICI Venture Funds Management Growth, Disha Trust and Reconciliation Shares Trust.
entities consolidated as per Company Limited (IVFMCL) 2. Settlor for Equity Fund, Emerging Sectors Trust and Eco-net Fund.
Accounting Standard 21 of the • ICICI Prudential Life Insurance
holding company. O. Nature of business
Company Limited (IPLICL)
The Company is engaged in the business of acting as a trustee for funds and
ii) Transactions with related parties, as identified by the management for the year trusts, which constitutes the only segment of the Company.
ended March 31, 2018 and outstanding balance at March 31, 2018.
(` in ‘000s) P. Income tax
Tax expense for the year is on the basis of current tax since there are no timing
Nature of transaction Holding Fellow subsidiaries/ Total
differences resulting into tax expense/tax saving on the deferred tax basis.
company entities
ICICI Bank1 IVFMCL2 Q. Earnings per share

Trusteeship fees 230 150 380 Earnings per share is calculated as follows:

Interest on deposits with banks 165 - 165 Particular Year ended Year ended
March 31, 2018 March 31, 2017
Outstanding balances
(i) Net profit after tax (` in ‘000s) 601 609
Trusteeship fees receivable - 54 54 (ii) Weighted average number of Equity 50,000 50,000
Bank balances 463 - 463 Shares (No.)
Fixed deposits 2,270 - 2,270 (iii) Earnings per share – basic and diluted (`) 12.02 12.18
Accrued interest on deposits 66 - 66 R. Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)
Investments (* 1 share of ` 10) - -* -* There are no micro, small and medium enterprises, to which the Company
Share capital 500 - 500 owes dues, which are outstanding for more than 45 days at March 31, 2018.

1. Settlor for ICICI Bank Pledged Shares Trust, ICICI Foundation for Inclusive S. Figures of the previous year/period have been regrouped and reclassified
Growth, Disha Trust and Reconciliation Shares Trust. wherever necessary to conform to the current period’s presentation.
2. Settlor for Equity Fund, Emerging Sectors Trust and Eco-net Fund.

As per our Report of even date For and on behalf of the Board of Directors

For KHANDELWAL JAIN & CO. P. Sanker Sanjay Chougule

Chartered Accountants DIN: 00008187 DIN: 00073782
ICAI Firm Registration no.: 105049 W Chairman Director

Chirag Doshi Supritha Shetty Vivek Ranjan

Partner DIN: 02101473 Compliance Officer
Membership No.: 119079 Director

Place: Mumbai
Date: April 17, 2018

399
 ICICI Bank UK PLC
15TH ANNUAL REPORT AND ACCOUNTS 2017-2018
Directors
Mr. N.S. Kannan Non Executive Director, Chairperson of the Board
Mr. Vijay Chandok Non Executive Director
Mr. Robert Huw Morgan Independent Non Executive Director
Mr. Jonathan Britton* Independent Non Executive Director
Mr. John Burbidge Independent Non Executive Director
Sir Alan Collins Independent Non Executive Director
Mr. Sudhir Dole Managing Director & CEO
* Mr. Jonathan Britton resigned from the position of the Non Executive Director of
the Bank on April 30, 2017.
strategic report
The Directors present their strategic report for the year ended March 31, 2018
(FY2018) for ICICI Bank UK PLC (“the Bank”).
Nature of Business
ICICI Bank UK PLC offers retail, corporate banking, commercial banking and treasury
services. The Bank is authorised by the Prudential Regulation Authority (PRA) and
regulated by the PRA and the Financial Conduct Authority (FCA). The Bank is a
wholly owned subsidiary of ICICI Bank Limited (“the Parent Bank”) which is India’s
largest private sector bank by total consolidated assets. The Bank was incorporated
in England and Wales as a private company with limited liability on February 11, 2003
and was converted to a public limited company, assuming the name ICICI Bank UK
PLC, on October 30, 2006. As a public limited company, the Bank is able to access
the capital markets.
The Bank has a senior debt rating of Baa1 from Moody’s Investors Service Limited
(Moody’s).
Business Review
The Bank delivers its corporate, commercial and retail banking products and services
through seven branches located in the UK and two branches in mainland Europe, located
in Antwerp (Belgium) and Eschborn (Germany) as well as through online banking.
The Bank’s overall strategy in the past few years has centred on a “diversification”
theme. During FY2018, the Bank remained focused on its key strategic objectives of
diversification of the business profile, continuing proactive risk management, effective
liquidity and capital management and meeting the requirements of the changing
regulatory environment. The Bank’s focus is on maintaining a sustainable business
model within strong corporate governance and a robust control environment.
The Bank’s corporate business includes banking services for select companies in the
UK, EU and North American regions, for Europe based multinational corporations
which have active trade and investment flows with India, for large businesses owned
by persons of Indian origin and for Indian corporations seeking to develop their
business overseas.
The Bank provides retail banking services to UK consumers with a diverse product
suite including retail and business current and savings accounts, online banking,
debit cards, money transfers, travel solutions and property backed lending.
Additionally, the Bank offers interest based savings accounts and fixed rate term
accounts to UK and German consumers which are supported over internet and
phone enabled channels.
The Bank is managed as a single business. For the purposes of the business review,
however, management has described activity by individual business areas. The
financial information in the following sections have been presented in US Dollars
with additional disclosure in Indian Rupee (`) currency for convenience using the
exchange rate as at March 31, 2018 of USD/` 65.175 which has been applied across
both FY2018 and FY20172.
Key strategic highlights: FY2018
During FY2018, the Bank has continued executing its four pillar strategy, this being:
diversification of asset profile, diversification of liability profile, expansion of non
lending revenue streams and enhancement of operating efficiencies. The focus on
a well established strategy has effectively positioned the Bank to tap opportunities
present in its key markets.
The Bank’s strategic objectives are increasingly focused towards creation of
franchise value through building value proposition for its customers in chosen
business segments. The Bank aims to deliver long term sustainable growth
supported by strong and effective corporate governance, risk management and
control environment.
400
Auditors Registered Office
David AT Todd (Senior Statutory Auditor) ICICI Bank UK PLC
for and on behalf of KPMG LLP, Statutory Auditor One Thomas More Square
Chartered Accountants London E1W 1YN
15 Canada Square London E14 5GL United Kingdom
Aarti Sharma
Chief Financial Officer
& Company Secretary
The Bank has a well established risk appetite for all critical risks, including credit,
market, operational, conduct and cyber risks. The business continued to operate
within the defined risk appetite, with close monitoring by management and the
Board Committees. The Bank has adequate capital in compliance with the regulatory
requirements. Further, the Bank continued to focus on effective liquidity and capital
management within a strong control environment and corporate governance.
Total assets increased by 12% in FY2018 to USD 3,884 million (` 253,163 million)
compared to the previous year, primarily due to increase in balances at central
banks, investments and a nominal increase in its loan portfolio. The Bank maintained
adequate liquidity and capital position during the year.
The Bank further strengthened the risk framework following the Brexit referendum.
During the year, the loans and advances portfolio increased by 5% primarily due
to increase in short term interbank lending and good momentum in the UK and EU
corporate deals which helped in growing the Bank’s local and overseas client base.
However, due to higher prepayments and selective sell down of loans, the loan
book growth was nominal. The focus was maintained on balancing geographical
and sectoral concentration as well as further diversification of the loan portfolio. The
efforts to balance the geographical concentration led to a shift of loan profile with
India as the country of risk reduced from 31% in FY2017 to 20% in FY2018 of the
total loan portfolio (loans and advances to customers and banks). The Bank has been
focused on increasing granularity in its corporate loan portfolio which has led to a
reduction in average disbursement and exposure size.
On the liabilities side, the Bank continued to focus on rebalancing its funding sources
and successfully diversified and broadened its funding profile and reduced the cost
of funds by leveraging the retail and wholesale funding channels. During the year,
the Bank accessed funding opportunities available in the wholesale markets which
helped in an overall reduction in the cost of funds. The Bank also launched a new
series of its online savings product “HiSave Bonus Super Saver” in September 2017
and February 2018 to raise retail funds.
The corporate and commercial banking fee income, business banking and retail
remittance income streams continued to be the main sources of the non interest
income. The non interest income remained flat during the year compared to the
previous year mainly due to an increase in business banking foreign exchange and
trade related revenues offset with a reduction in corporate fees. The Bank remained
focused on enhancing operating efficiencies without compromising the control
environment. While the operating expense base increased versus previous year
mainly due to appreciation of Great Britain Pound (GBP) to US dollar exchange rate,
the Bank continued its focus on expense rationalization and vendor negotiation
initiatives which helped in maintaining a stable cost to income ratio of 42%. The
Bank remained committed to maintaining a strong control framework to meet
increasing regulatory and reporting obligations and continued to invest in people
and technology to further strengthen the control framework.
The Bank made an annual Loss After Tax of USD 25.5 million (` 1,664 million) in FY2018
compared with the Loss After Tax of USD 16.1 million (` 1,051 million) in the previous
year. While the operating margins remained stable, higher impairment provisions
resulted in a loss for the year. The Net Interest Margin (NIM) for FY2018 of 1.85%
improved compared to 1.75% in FY2017 driven by a reduction in the cost of funds. The
Bank made additional provisions on impaired assets mainly due to the deterioration
in business performance of borrowers and delays in realisation of collateral. (Detailed
financial highlights are provided in the section “Key financial highlights”).
The capital and liquidity position remained adequate throughout FY2018. The Bank’s
approach to managing capital and liquidity is designed to ensure that regulatory
capital and liquidity requirements are met at all times. During the year, the Bank
complied with and maintained the High Quality Liquid Assets (HQLA) in line with the
liquidity guidelines. The Bank also maintained adequate capital as required under
Capital Requirements Directive (CRD IV).
1
The strategic report is part of the Bank's annual report and accounts.
2
The numbers in ` are proforma only and should not be regarded as as being audited and
in compliance with UK GAAP.
strategic report
The Bank reviews its Risk Appetite Framework regularly to take into account inter Treasury
alia changes to the operating environment, portfolio composition, experience The Treasury Group manages the structure of the balance sheet of the Bank, supports
with stressed assets and regulatory changes. The Bank’s risk management group the capital needs and manages the market and liquidity risk of the Bank. Throughout
monitors adherence to the risk appetite and reports to the Board Risk Committee the year, the Bank complied with and maintained the High Quality Liquid Assets
(BRC) on a quarterly basis. The Bank’s Credit Forum, which meets monthly, also (HQLA) in line with the guidelines for Liquidity Coverage Ratio (LCR) requirements.
tracks risk concentrations, developments in the portfolio and industry trends, The Bank reviews the asset/liability maturity mismatches and interest rate positions,
through a range of early warning indicators, to identify vulnerabilities and take timely and maintains liquidity gaps and interest rate positions within prescribed limits,
actions including, where appropriate, making revisions to the Risk Appetite and Risk which are monitored by the Asset and Liability Management Committee (ALCO)
Management Framework. of the Bank. In line with the strategy of diversification of funding sources and to
The Bank continued to place considerable attention on the management of conduct minimize the cost of funds, the Bank continued to focus on exploring alternative
risk, with conduct risk related matters reported regularly to the Board Conduct funding sources through savings and term deposit variant to be offered through
Risk Committee (“BCRC”) and the Compliance, Conduct and Operational Risk intermediaries established during FY2017. During the year, the Bank also raised
management Committee (“CORMAC”). The Bank maintained its focus on sustaining funding through various wholesale instruments including bilateral loans and bonds
its customer-centric culture and invested in various technology initiatives to enhance under its Medium Term Note (MTN) Programme at competitive pricing driven by
customer experience. Close management of complaints ensured that all complaints conducive wholesale markets. In addition, the Bank availed funding through the
were closed well within the regulatory stipulated timeframes. Term Funding Scheme (TFS) offered by the Bank of England which helped the
Bank in raising low cost central bank funding. During the year, the Bank enhanced
Corporate and Commercial Banking its Liquidity risk management framework through maintenance of HQLA in Euro
The Corporate Banking division continued to focus on diversification of its portfolio currency which resulted in an increase in central bank balances in its Germany
within the risk appetite of the Bank. The Bank extended loans to clients in the UK, branch.
EU and North America regions. The focus remained on offering the products which The investment portfolio of the Bank is also managed by the Treasury Group. The
are core to the Bank’s competencies and strategy, its clients’ needs and in line with treasury activities are carried out through the Balance Sheet Management Group,
the risk appetite. Total loans and advances to customers increased by 1% to USD Investment desk and Global Markets Group. During the year, the Investment
2,366 million (` 154,181 million) compared with USD 2,332 million (` 151,997 million) Management Group invested in Indian bank and corporate bonds and further
in the previous year mainly driven by strong momentum in the new corporate deals diversified the portfolio through investments in EU and US corporate bonds along
offset with higher volume of prepayments especially for its India portfolio due to with other HQLA eligible bonds within the established risk appetite of the Bank.
refinancing opportunities with the borrowers arising from the changing interest rate
environment. The Bank did selective sell downs of loans mainly in the international Financial Highlights
corporate portfolio. As a strategic component of the Bank’s commitment towards The financial performance for the financial year 2018 is summarised in the following table
its business in the UK market, the Bank continued expanding its presence in the
corporate lending secured against property within the established risk framework. Summarised Profit and Financial Financial % Change Financial Financial
loss account 2018 2017 2018 2017
IMF in its report published in April 2018, noted that the growth in the Indian
economy is projected to increase from 6.7% in 2017 to 7.4% in 2018 and 7.8% USD 000s USD 000s ` in million ` in million
in 2019, supported by strong private consumption and fading transitory effects Net interest income 66,905 65,526 2% 4,362 4,270
of the national goods and services tax. While growth prospects have improved, Non interest income 13,359 13,364 0% 871 870
challenges in the corporate sector remain due to weak cash flows and slow
Profit/(Loss) on sale of
process of resolution of stressed assets. The Bank has maintained a cautious
financial assets 2,960 4,619 -36% 193 301
approach to lending to Indian corporations which resulted in a decrease in the
new disbursements for this segment. Total revenue 83,224 83,509 0% 5,426 5,441

The Bank’s Germany branch registered a reduction in its loans and advances Operating expenses (34,917) (33,917) 3% (2,276) (2,211)
portfolio. During the year, the branch’s balance sheet size registered a growth Profit before provisions,
driven by increase in central bank balances and interbank money market charges and taxes 48,307 49,592 -3% 3,150 3,230
placements. The Bank continued to do corporate lending through the Germany Impairment provision and
branch within the risk framework funded by low cost institutional deposits. The charges (78,711) (68,181) 15% (5,130) (4,444)
Bank availed its Targeted Longer Term Refinancing Operations (TLTRO) facility (Loss)/Profit before tax (30,404) (18,589) 64% (1,980) (1,214)
extended by the European Central Bank (ECB) which helped the Bank in raising
low cost central bank funding. Tax 4,856 2,507 94% 316 163
(Loss)/Profit after tax (25,548) (16,082) 59% (1,664) (1,051)
Retail Banking
In continuation of the strategy of diversification of funding sources, the Bank remained Summarised Balance Financial Financial % Change Financial Financial
focused on rebalancing the retail and wholesale funding mix. The Bank witnessed Sheet 2018 2017 2018 2017
positive results following the enhancement of its business banking product suite
USD 000s USD 000s ` in million ` in million
including account and payment services, trade services and secured loans. During
the year, the Bank expanded its funding base through newly established savings and Cash and cash equivalents 500,246 333,702 50% 32,604 21,749
term deposit variant to be offered through intermediaries. The Retail Banking team Loans and advances to
focused on expansion of business banking secured loans against property within the banks 137,553 55,226 149% 8,965 3,599
risk appetite of the Bank and made reasonable progress. During the year, the Bank Loans and advances to
also initiated asset finance lending established within the risk framework. customers 2,365,651 2,332,132 1% 154,181 151,997
The Retail Banking team remained focused on enhancing the business banking Investments 804,895 683,306 18% 52,460 44,534
and remittance income in line with the strategic pillar of expansion of non lending
Total assets 3,884,340 3,479,766 12% 253,163 226,794
revenue streams through upgrading its technology to enhance the customer
experience. During FY2018, the Bank launched its retail current account with a Customer accounts 1,748,820 1,648,588 6% 113,979 107,447
Video based Know Your Customer (KYC) process and an online business current Shareholders’ funds 506,752 533,230 -5% 33,028 34,753
account. The team also streamlined its business banking account opening process
with an improvement in Turn Around Time and Straight Through Processing rates. Capital3
Due to the ongoing efforts of enhancing customer experience, the Bank registered
a healthy growth in its business banking foreign exchange and trade revenues. In Capital Ratios March 31, 2018 March 31, 2017 Movement
continuation of its journey towards enhanced customer experience through digital Core Tier 1 ratio 14.00% 15.50% -1.50%
channels, the Bank launched contactless debit cards and implemented customer life
cycle management in Europe to get deeper insight into customer behaviour. The Tier 1 ratio 14.00% 15.50% -1.50%
Bank also saw an increased usage for its Mobile App for Money 2 India (M2I) Europe. Total ratio 16.50% 18.40% -1.90%
During the year, the Bank was awarded with the “Asian Business Bank of the year
2018” award by Eastern Eye and the MD & CEO of the Bank was selected in the “100 Risk weighted assets March 31, March 31, % Change March 31, March 31,
most influential in UK-India relations” by India Global business. 2018 2017 2018 2017
The Bank continued to focus on its strategy of improvement in process efficiencies. USD 000s USD 000s ` in million* ` in million*
During the year, the Bank took a decision to close one of its retail branches and the Risk weighted assets 3,498,919 3,355,950 4% 228,042 218,724
initiative was implemented without any adverse impact on the customers.
The Bank remained focused on strengthening its service delivery platform to ensure 3
Pillar 3 disclosures are available online on the Bank’s website:
an enhanced customer experience and improved customer outcomes thereby http://icicibank.co.uk/personal/basel-disclosures.html
operating within the overall conduct risk framework for the Bank.

401
 strategic report
Key Financial highlights: FY2018
As at March 31, 2018, the Bank had total assets of USD 3,884 million (` 253,163
million) compared with USD 3,480 million (` 226,794 million) as at March 31, 2017.
The balance sheet increased by 12% primarily due to an increase in central bank
balances, investments and a nominal growth in loans and advances. During the
course of the year, the Bank maintained adequate liquidity surplus compared to
regulatory requirements. Due to an increase in volatility in global markets during
Q4 FY2018, the Bank maintained surplus liquidity in the form of balances with
central banks and investment in treasury bills which increased as compared with the
previous year. The loans and advances to banks increased by 149% driven by short
term interbank lending which was primarily done for liquidity management purposes.
The loans and advances to customers increased by 1% following high business
volumes in corporate deals from UK and EU and supply chain financing offset with
higher prepayments and sales in the portfolio. During the year, the Bank saw a higher
volume of prepayments primarily for India portfolio due to refinancing opportunities
arising from the changing interest rate environment. The Bank continued to follow a
cautious concentration risk management strategy through selectively selling down
loans in its international corporate portfolio. The Bank monitors adherence to the
portfolio limits as prescribed in the risk appetite on a periodic basis.
On the liabilities side, the Bank accessed the available opportunities in the wholesale
markets and raised funding through various funding sources such as bilateral loans,
bonds, repurchase agreements and banker’s acceptance. With respect to rebalancing
the wholesale and retail mix of its liability portfolio, the Bank saw encouraging flow
of funds post the launch of “HiSave Bonus Super Saver” series in September 2017
and February 2018 for raising retail funds. The Bank fully redeemed its balance sub-
ordinated debt of USD 26 million at its call back date in June 2017.
The Bank made a Loss Before Tax in FY2018 of USD 30.4 million (` 1,980 million)
compared with Loss Before Tax of USD 18.6 million (` 1,214 million) in the previous
year mainly due to higher impairment provisions. A Loss After Tax of USD 25.5
million (` 1,664 million) was made against the Loss After Tax of USD 16.1 million (`
1,051 million) in the previous year.
The net interest income (NII) increased by 2% compared with the previous year
despite a reduction in average interest earning assets by 3%. The Net Interest Margin
(NIM) for FY2018 of 1.85% registered a healthy growth versus NIM of 1.75% in the
previous year. The NIM improvement was primarily driven by lower cost of funds.
The cost of funds reduced due to rebalancing of the retail and wholesale deposits
mix and diversification of funding sources. The cost of funds for FY2018 reduced
as compared with the previous year despite increase in the USD and GBP LIBOR
during the year.
The non interest income remained flat as compared to the previous year primarily
due to an increase in business banking foreign exchange and trade income offset
with lower corporate fees. The Bank’s business banking strategy revolved around
acquisition of new customers and enhancement of its technology platform to provide
improved customer experience. This resulted in an increase in the business banking
revenues as compared to the previous year. Remittance revenues from UK and M2I
Europe remained consistent with the previous year due to increased competition
in the money transfer business with more fintech players entering the UK and EU
market. The reduction in corporate fees was mainly due to limited opportunities in
providing structuring and arrangement services to corporate clients .
During the year, the Bank booked a profit of USD 3.0 million on sale of financial
assets driven by the market opportunities and liquidity management.
Operating expenses at USD 34.9 million (` 2,276 million) increased by 3% compared
to the previous year primarily due to an appreciation of GBP to US dollar. However,
the Bank maintained a stable cost to income ratio of 42% driven by expense
rationalization and vendor negotiation initiatives.
The provisions made during the year were USD 78.7 million (` 5,130 million)
compared with USD 68.2 million (` 4,444 million) in the previous year. The Bank
made additional provisions on impaired assets mainly due to the deterioration in
business performance of borrowers and delays in realisation of collateral. Due to the
challenging market conditions and economic environment, the Bank saw an increase
in stress in the performance of a few sectors which resulted in loans being classified
as impaired. Currently, the Bank operates within the risk appetite, it has introduced
in recent years. As at March 31, 2018, the provision coverage on impaired loans and
equity increased to 48% as compared to 37% in the previous year.
The Bank recognised an overall tax credit of USD 4.9 million which included a credit
of USD 5.0 million on the consolidated loss, a credit of USD 0.9 million on account
of AFS reserves partially offset by a tax provision of USD 1.0 million on the profit
booked in its Germany branch.(Refer note 11 on Taxation)
As at March 31, 2018 the total capital was 16.5% with Tier 1 ratio of 14.0%. The
Bank is in compliance with the CRD IV regulatory requirements. The Bank continues
to comply with and maintains balances in HQLA in line with the Liquidity Coverage
Ratio (LCR) regime. The Bank manages the capital and liquidity to ensure that current
regulatory capital and liquidity requirements are met at all times.
4
Key economic and business outlook
As per the Interim Economic Outlook March 2018 published by the OECD, the global
economy is now growing at its fastest pace since 2010, with the upturn becoming
increasingly synchronised across countries. This pickup in global growth, supported
402
by policy stimulus, is being accompanied by solid employment gains, a moderate
upturn in investment and a pick-up in trade growth. Global GDP growth is projected
to strengthen from 3.5% in 2017 to 3.8% in 2018 before easing slightly in 2019. On
a per capita basis, growth is set to improve but fall short of pre-crisis norms in the
majority of OECD and non-OECD economies. Inflation is currently subdued in the
major economies and is set to remain moderate, although edging up gradually.
Whilst the near-term cyclical improvement is welcome, it remains modest and
prospects of continuing improvement in global growth through 2019 do not yet
appear to be strong. Some improvement is expected in 2018 and 2019, with firms
making new investments to upgrade their capital stock, but this will not fully offset
past shortfalls, and productivity gains are expected to remain limited. Growth also
remains softer than in the past in the emerging market economies (EMEs). EME
growth is hampered by slowing reform efforts and financial vulnerabilities from
high debt burdens, particularly in China. Financial risks are also rising in advanced
economies, with the extended period of low interest rates encouraging greater risk-
taking and further increases in asset valuations, including in housing markets.
4
Interim Economic Outlook March 2018 published by the OECD
In the United Kingdom, economic growth is expected to weaken in 2018 and 2019.
Private consumption is projected to remain subdued as higher inflation could
impact household purchasing power. The unemployment rate is at a record low,
but with slower growth this is unlikely to persist. Exchange rate depreciation would
be supportive of exports, while import growth is projected to fall owing to weaker
private consumption. An agreement about a transition period linked to the EU exit
after March 2019 would reduce uncertainty on domestic spending. Prospects of
maintaining the closest possible economic relationship between the United Kingdom
and the European Union would further support economic growth.
The economic expansion in the United States is projected to continue in 2018 and
2019. Buoyant asset prices and strong business and consumer confidence will
support consumption and investment growth. Fiscal policy is projected to become
more supportive in 2018 as measures are assumed to be introduced lowering
tax rates on corporate and personal income and stimulating investment and
consumption. At a time when unemployment is at its lowest level since 2000, the
assumed fiscal boost is likely to contribute to further wage growth, thereby providing
the conditions for monetary policy to continue normalising gradually.
Economic growth in India is projected to strengthen to above 7%, gradually
recovering from the transitory adverse impact of rolling out the Goods and Services
Tax (GST) and measures like demonetisation. In the longer run, the GST is expected
to boost corporate investment, productivity and growth. Non-performing loans have
increased, largely reflecting recognition efforts, and are particularly high in public
banks. Steps have been taken to clean up banks’ balance sheets, giving creditors
more control over the stressed entities. A new bankruptcy law has been implemented.
Growth in China has strengthened somewhat in 2017, driven by services and
some strategic industries, but is projected to soften in 2018 and 2019, as exports
decelerate.
While the global economic environment improved during 2017, uncertainties
remained related to challenges in developing economies and geo political risks.
Hence, the Bank took a cautious approach towards new lending. The Bank operated
within its tight lending framework on local lending and increased monitoring of its
exposures which could be impacted by Brexit.
In consideration of the economic environment and future outlook, the Bank will
continue on its journey of creating a franchise. The efforts to enhance the non-
interest revenue streams will continue along with improving operating efficiencies
and efficient capital and liquidity management. The Bank will continue to monitor the
global economic environment as well as the economic situation and developments
in India and Europe and strive to tap the market opportunities in line with its risk
management framework and risk appetite.
Key risks
The Bank’s business is subject to inherent risks relating to borrower credit quality
as well as general global economic and India conditions. The Bank’s funding is
composed of medium to long term deposits, term borrowings and a proportion of
short term savings balances. If depositors and/or lenders do not roll over invested
funds upon maturity, the Bank’s business could be adversely affected. Unfavourable
wholesale market conditions could have an adverse impact on meeting the funding
requirements of the Bank. The security of the Bank’s information and technology
infrastructure is a key focus area for maintaining banking applications and processes.
Cyber-attacks disrupt the availability of customer facing websites and could
compromise the Bank’s customer data and information.
The UK Prime Minister invoked Article 50 of the Treaty of European Union on March
29, 2017, thereby triggering a two year process of UK withdrawal from the European
Union (EU). This could have wide ranging effects for UK businesses and in particular
financial services firms who currently benefit from arrangements allowing them to
passport their services into any EU country. The current uncertainty on reaching to a
final deal between the UK and rest of the EU over what form Brexit will take remains
a common issue for all firms in the UK.
Established controls around the measurement of risks through effective risk
management helps the Bank in mitigating such risks. The Bank will continue to
work within the risk framework as set out by the Board. The increased supervisory
strategic report
and compliance environment in the financial sector leads to increased risks of
regulatory action. The Bank’s continued focus on ensuring compliance with all
regulatory requirements mitigates the risk of regulatory action. The Bank makes
sufficient investments in addressing the risks through infrastructure development,
regular training to enhance awareness of employees, and increased monitoring
and management of these risks. The Bank’s Directors and Management review
the risk appetite on a regular basis and continue to make any relevant changes to
ensure regulatory compliance. The Bank ensures compliance with new regulatory
guidelines. During the year, the Bank implemented EU’s Markets in Financial
Instruments Directive (MIFID II) reforms and second Payment Services Directive
(PSD2) and is in compliant with the new regulations. The General Data Protection
Regulation (GDPR) will come into effect in May 2018 and the Bank has a robust
project plan in place for timely implementation of the guidelines. The detail around
the Bank’s risks and management is given in Note 38.
Corporate Governance and Risk Management
Corporate Governance
The Bank’s corporate governance framework is based on an effective independent
Board, the separation of the Board’s supervisory role from the executive management
of the Bank and the constitution of Board Committees to oversee critical areas and
functions of executive management. The Board is committed to maintaining high
standards of corporate governance. During the year, Mr. Jonathan Britton resigned
from the position of Non Executive Director and Chairman of the Audit Committee.
The Board appointed Mr. John Burbidge as the Chairman of the Audit Committee
effective May 5, 2017. Mr. John Burbidge has been the Non Executive Director of
the Bank and member of the Audit Committee since January 23, 2012. The Board
appointed Mr. Burbidge as the Chair of the Audit Committee considering his rich
experience in Banking and a good understanding of the Bank’s business model. A
Chartered Accountant by profession and an experienced banker with over 35 years
of in depth banking experience, Mr. Burbidge retired as the CEO of RBC Capital.
Following this change, the Bank has a total number of five Non Executive Directors
on the Board, two of whom are representatives of the Bank’s Parent, ICICI Bank
Limited, and three are independent.
The Bank operates three lines of defence model including independent control
groups such as Compliance, Risk, Internal Audit, Finance and Legal to facilitate
independent evaluation, monitoring and reporting of various risks. These support
groups function independently of the business groups and are represented at the
various Committees.
Effective corporate governance and compliance is a prerequisite to achieving
the Bank’s strategic objectives. The Bank has maintained its focus on controls,
governance, compliance and risk management to provide a sound foundation for
the business and it continues to ensure embedding of a controls and compliance
culture throughout the organization. This is achieved through appropriate training,
maintaining adequate resources within the control groups commensurate with the
Bank’s operations, continuous strengthening of internal systems and processes and
effective deployment of technology. Information technology is used as a strategic
tool for the Bank’s business operations, to gain a competitive advantage and to
improve its overall productivity and efficiency.
During the year, the Bank engaged an external consultant to conduct the Board and
Board Committees effectiveness review. The review was successfully completed
with positive outcomes. The Bank has prepared an action plan to address the
feedback from the reviews which are monitored closely by the Board and Board
Committees for timely completion. The results indicated that on the whole the
Board and the Board Committees are working effectively with the Directors having
a good understanding of the key issues, committing sufficient time to perform their
functions in the Bank and focusing on the appropriate areas.
Brexit
Following the referendum during FY2017, the Bank formed a Brexit Committee
chaired by the Head of Risk and attended by the executive management with regular
meetings to monitor and discuss the developments related to Brexit. During the year,
the Committee finalised its strategic planning on the Bank’s operations including its
branches in Belgium and Germany which currently rely on passported permissions
from the UK. The Committee reports to the Board Risk Committee on a regular basis.
During the year, the Bank presented its post Brexit plans and recommendation to
the Board Risk Committee and the Board for approval. The plan was approved by
the Board Risk Committee followed by the Board. The Bank is proactively working
to ensure continuity in its current businesses in Germany and Belgium after the UK
leaves the EU upon Brexit implementation.
Senior Managers Regime
The Bank has fully implemented the requirements of the Senior Managers regime,
which came into effect on March 7, 2016. Specifically, the regime requires firms to:
Allocate a range of responsibilities to Senior Managers (including Non-
1. 
Executive Directors) and to regularly vet their fitness and propriety. This will
focus accountability on a narrower number of senior individuals in banks than
the previous Approved Persons Regime.
2. Assess the fitness and propriety of certain employees (certification employees)
who could pose a risk of significant harm to the bank or any of its customers and
issue them with certificates on an annual basis.
3. Apply a new set of conduct rules to a broad range of staff, including the Senior
Managers and the certification staff.
The Bank presents regular updates on compliance with the regime to the Board
Governance Committee.
Risk Management
The Bank has a centralised Risk Management Group with a mandate to identify,
assess and monitor all its principal risks in accordance with defined policies and
procedures. The Risk Management Group is independent of the business units
and the Head of Risk reports directly to the Managing Director and Chief Executive
Officer, and also has reporting lines to the Risk Management Group of the Parent
Bank and the Chairperson of the Board Risk Committee.
The Bank has developed a risk appetite framework articulated within the broader
context of the nature, scope, scale and complexity of the Bank’s activities. The
anchors on which the framework has been based include quantitative parameters
such as capital, liquidity and earnings volatility as well as qualitative parameters such
as conduct and reputational risk. The risk appetite statement has been further drilled
down into portfolio-level limits, which include limits on country of risk and credit
ratings of loans. The risk appetite framework and related limits are approved by the
Board of Directors. The Risk Management Group of the Bank monitors adherence
to the risk appetite framework and reports on it to the Board Risk Committee on a
quarterly basis.
The Bank operates within a comprehensive risk management framework to ensure
that the key risks are clearly identified, understood, measured and monitored and
that the policies and procedures established to address and control these risks are
strictly adhered to. The outcomes of each of these risk management processes have
been used to identify the material risks that the Bank is exposed to. The Bank is
primarily exposed to credit risk, market risk (predominantly interest and exchange
rate risk), liquidity risk and operational risk (including compliance, conduct and
reputational risk). The Bank’s largest regulatory capital requirements arise from
credit risk in its lending operations.
The Bank maintains a detailed Recovery and Resolution Plan (RRP). It also maintains
a Liquidity Contingency Plan (LCP), which forms an integral part of the RRP. The plan
includes a range of recovery and liquidity indicators which allow the Bank to take
preventative measures to forestall a severe stress. They also include a communication
plan, which would be followed in the event of a crisis and a contingency funding
plan, which sets out the corrective measures to be invoked when there is a potential
or actual risk to the Bank’s liquidity position.
The Bank’s conduct risk philosophy is to develop and maintain long term
relationships with its customers, based on openness, trust and fairness. It expects
that the behaviour and motivation of every employee must be about good conduct
and adherence to established controls to deliver fair and appropriate outcomes to our
customers. The Bank evaluates the impact of the changing regulatory requirements
on an ongoing basis and is fully committed to establishing controls to deliver fair and
appropriate outcomes for its customers.
The management of operational risk within the Bank is governed by the Operational
Risk Management Policy (ORMP) which is reviewed and approved by the Board
Risk Committee (BRC) on an annual basis. Operational risk elements covered in the
ORMP include operational risk incident management including reporting, techniques
for risk identification, assessment and measurement, monitoring through key risk
indicators and risk mitigation techniques.
The Bank continues to focus on the conduct risk matters as defined in its conduct risk
appetite. Performance against the appetite and other conduct risk related matters are
reviewed and monitored by the Bank’s Board Conduct Risk Committee (“BCRC”) and
at the executive level by the Compliance, Conduct and Operational Risk Management
Committee (“CORMAC”). Both Committees meet on a periodic basis and receive
regular updates from both business and Compliance.
The Compliance, Conduct and Operational Risk Management Committee (CORMAC)
comprising of the senior management is responsible for the mitigation of
operational risk including fraud and conduct risk within the Bank. The CORMAC is
additionally responsible for reviewing and monitoring the financial crime prevention
performance of the Bank. It approves the Bank’s fraud governance framework and
fraud compensation proposals and monitors the progress of reported fraudulent
transactions.
The Bank has determined and articulated Operational Risk Appetite (ORA) which
has been defined as the acceptable maximum level of Operational Risk (OR) that the
Bank is willing to accept in pursuit of its strategic objectives, taking into account the
interest of its stakeholder as well as regulatory requirements. It has been expressed
both in quantitative and qualitative terms.
In order to further strengthen and proactively monitor its compliance to the ‘Conduct
Risk (CR)’, the Bank has also defined its ‘Conduct Risk Appetite (CRA)’ as per the
guidelines issued by the regulator and has established both quantitative and
qualitative measures of the Conduct Risk. The objective of a Conduct Risk Appetite
framework of the Bank is to identify key conduct risks faced by the Bank and the
steps to be taken to mitigate these risks; articulate the governance mechanisms,
systems and controls which are in place to mitigate these risks; and review the
exposure of the Bank to conduct risks and assist the Board in ensuring that the risk
appetite is not breached.
403
 strategic report
The Bank has developed and implemented a Business Continuity and Crisis
Management Plan (BCP) for all business and corporate functions to ensure
continued availability of critical business processes in an event of an outage. The
BCP also addresses disaster situations and provides necessary guidance to recover
and restore critical and important business processes in the event of an external
business disruption. Periodic testing of the BCP is carried out and the results and
the updates are shared with CORMAC. The Bank has developed and implemented
an Outsourcing Policy to mitigate outsourcing risks and ensure the application of a
standardized approach for all outsourcing arrangements entered into by the Bank.
Proposed Outsourcing Arrangements (OAs) are assessed for their criticality prior
to outsourcing. A detailed vendor review is carried out for all the critical SLAs on
an annual basis. The performance of vendors is periodically reviewed on various
parameters and assessment reports are presented to the BRC on an annual basis.
The Bank has a Data Protection Policy (DPP) to ensure that personal and sensitive
personal information about its clients, employees, vendors and others with whom
it communicates is dealt in accordance with the relevant national laws. This Policy
conforms to the provisions of Data Protection Legislation which means (i) before
25 May 2018, the EU Data Protection Directive 95/46 and all national implementing
laws (including the UK Data Protection Act 1998); and (ii) on or after 25 May 2018,
the EU General Data Protection Regulation 2016/679 (“GDPR”); together with all
other applicable and national implementing legislation relating to privacy or data
protection.
The Bank is committed to making the necessary investments in Information Security
which is essential to ensure the long term viability of the organisation and its data.
The Bank has implemented an integrated approach to security and made significant
progress in enhancing its Information Security governance through monitoring at the
Information Security Committee. Additionally, periodic presentations are given to
the Board Risk Committee on cyber threats and various measures taken by the Bank
mitigating cyber security risks and threats. The various measures include periodic
vulnerability and penetration testing, Application security life cycle assessment,
information security awareness programs and cyber incident management. During
the year, the Bank renewed its “Cyber Essentials” certificate and badge which
demonstrated that the Bank’s Information Security processes and procedures meet
the UK market baseline standards.
Internal Audit
Internal Audit is an integral part of the ongoing monitoring of the Bank’s system
of internal controls. The Internal Audit Group is an independent function and the
Head of Internal Audit reports directly to the Managing Director and Chief Executive
Officer, and also has reporting lines to the Chairperson of the Board Audit Committee
404
and General Manager, International Audit, ICICI Bank Limited. The Bank has put
in place a risk based internal audit coverage to verify that operating policies and
procedures are implemented as intended and are functioning effectively. Internal
Audit also evaluates whether the framework including the associated governance
processes meets the Bank’s needs and regulatory expectations/requirements.
Liquidity Regulation
In June 2015, PRA published its policy statement on liquidity requirements for banks,
which took effect from October 1, 2015. The guidelines introduced requirement for
banks to maintain LCR above regulatory requirements. The LCR is intended to ensure
that a bank maintains an adequate level of unencumbered HQLA which can be used
to offset the net stressed outflows the bank could encounter under a combined
stress scenario lasting 30 days. Starting January 1, 2018, the minimum regulatory
requirement is 100%. The LCR ratio of the Bank at March 31, 2018 was 203.9%. The
Bank holds a adequate level of liquidity in excess of regulatory requirements and
requirements as per internal risk appetite defined in ILAAP.
In October 2014, the Basel Committee published its final standard for the Net Stable
Funding Ratio (NSFR) which took effect on January 1, 2018. The NSFR is defined
as the amount of available stable funding relative to the amount of required stable
funding. Banks are expected to hold a NSFR of at least 100% on an on-going basis
and report its NSFR at least quarterly. During FY2018, the Bank contributed to the
Basel quantitative impact study through quarterly submissions and maintained its
NSFR above the expected ratio.
Details of the Bank’s governance arrangements, financial risk management objectives
and policies, including those in respect of financial instruments, and details of the
Bank’s indicative exposure to risks are given in Note 38.
By order of the Board
Sudhir Dole Aarti Sharma
Managing Director & Chief Financial Officer &
Chief Executive Officer Company Secretary
April 26, 2018
Registered address:
One Thomas More Square
London E1W 1YN
directors’ report
directors’ report
The Directors have pleasure in presenting the Fifteenth annual report of ICICI Bank
UK PLC, together with the audited financial statements for the year ended March
31, 2018.
Financial Results
The financial statements for the reporting year ended March 31, 2018 are shown on
pages 409 to 433.
Directors
Mr. N.S. Kannan Non Executive Director, Chairperson of the Board
Mr. Vijay Chandok Non Executive Director
Mr. Robert Huw Morgan Independent Non Executive Director
Mr. Jonathan Britton* Independent Non Executive Director
Mr. John Burbidge Independent Non Executive Director
Sir Alan Collins Independent Non Executive Director
Mr. Sudhir Dole Managing Director & CEO
* Mr. Jonathan Britton resigned from the position of the Non Executive Director of
the Bank on April 30, 2017.
Company Secretary
The name of the Company Secretary at the date of the report and who served during
the year is as follows: Ms. Aarti Sharma
Going concern
The Bank’s business activities and financial position; the factors likely to affect its
future development and performance; and its objectives and policies in managing
the financial risks to which it is exposed and its capital are discussed in the Business
Review and Risk Management section.
The Directors have assessed, in the context of the Bank’s current results and
operating environment, capital and liquidity position and projections, the Bank’s
ability to continue as a going concern. The Directors confirm they are satisfied that
the Bank has adequate resources to continue in business for the foreseeable future.
For this reason, they continue to adopt the ‘going concern’ basis for preparing
accounts.
Share Capital
As at March 31, 2018, the issued and fully paid share capital amounted to USD 420
million (` 27,380 million).
Employees
As at March 31, 2018 the Bank had 178 employees. The Bank encourages the
involvement of all employees in the Bank’s overall performance and profitability.
The Bank has a pension scheme operating in the UK in which the employees are
entitled to a maximum of five percent contribution of their basic salary by the Bank.
Generally, all permanent employees have life insurance cover to the extent of four
times their base salary. The Bank also has a private medical insurance plan, which
covers permanent employees and their dependents in UK.
The Bank is committed to employment practices and policies which recognise the
diversity of its workforce and ensure equality for employees regardless of sex, race,
disability, age, sexual orientation or religious belief. Employees are kept closely
involved in major changes affecting them through such measures as team meetings,
briefings, internal communications and opinion surveys. The Bank has adopted
a Code of Conduct, which sets out the core values and behaviours expected of
senior management and other employees. The requirements of the Code are for
all employees to act with integrity and maintain the right culture at all times. It also
reinforces the Bank’s commitment to maintaining high standards in management of
our relationship with customers, employees and suppliers.
The Bank recognises its social and statutory duty and follows a policy of providing
same employment opportunities for disabled persons as for others.
The Bank follows a conservative and comprehensive approach towards remuneration.
The Bank has adopted and implemented a Remuneration Policy which has been
approved by the Board Governance Committee. The Bank ensures that it adheres
to the Remuneration Code guidelines published by the PRA and FCA. The Bank’s
remuneration policy disclosures are made available on the Bank’s website: http://
www.icicibank.co.uk/personal/basel-disclosures.html as part of Pillar 3 disclosures.
Political contributions
The Bank made no political donations or incurred any political expenditure during
the year.
Dividends
No dividends on the share capital of the Bank is proposed during the year.
Post balance sheet events
There have been no material events after the balance sheet date which would require
disclosure or adjustments to the March 31, 2018 financial statements.
Disclosure of information to the Auditor
The Directors who held office at the date of approval of this Directors’ report confirm
that, so far as they are each aware, there is no relevant audit information of which the
Bank’s auditor is unaware; and each Director has taken all the steps that he or she
ought to have taken as a Director to make himself or herself aware of any relevant
audit information and to establish that the Bank’s auditor is aware of that information.
Auditor
KPMG LLP was appointed as the auditor of the Bank at its Annual General Meeting
on July 14, 2017 for a year. In accordance with Section 489 of the Companies Act of
2006, a resolution for the re-appointment of KPMG LLP as auditor of the Bank is to be
proposed at the forthcoming Annual General Meeting.
By order of the Board
Sudhir Dole Aarti Sharma
Managing Director & Chief Financial Officer &
Chief Executive Officer Company Secretary
April 26, 2018
Registered number: 4663024
Registered address:
One Thomas More Square
London E1W 1YN
405
 statement of directors’ responsibility
Statement of Directors’ responsibilities in respect of the Strategic Report,
Directors’ Report and the financial statements
The Directors are responsible for preparing the Strategic Report, Directors’ Report
and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law they have elected to prepare the financial statements
in accordance with UK Accounting Standards and applicable law (UK Generally
Accepted Accounting Practice), including FRS102, the Financial Reporting Standard
applicable in the UK and Republic of Ireland.
Under company law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs of the
company and of the profit or loss of the company for that period. In preparing these
financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• s tate whether applicable UK Accounting Standards have been followed, subject
to any material departures being disclosed and explained in the financial
statements; and
•  repare the financial statements on the going concern basis unless it is
p Sudhir Dole
inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the company’s transactions and disclose with
reasonable accuracy at any time the financial position of the company and enable
them to ensure that the financial statements comply with the Companies Act 2006.
406
They are responsible to report a fair review of the development and performance
of the business and the position of the company together with a description of
the principal risks and uncertainties faced by the company. They have general
responsibility for taking such steps as are reasonably open to them to safeguard
the assets of the company and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and
financial information included on the Bank’s website. Legislation in the UK governing
the preparation and dissemination of financial statements may differ from legislation
in other jurisdictions.
The Directors are responsible for the preparation of the schedule in accordance with
the Capital Requirements (Country-by-Country Reporting) Regulations 2013, for the
appropriateness of the basis of preparation and the interpretation of the Regulations
as they affect the preparation of the schedule. The Capital Requirements (Country-
by-Country Reporting) Regulations 2013 came into effect on January 1, 2014 and
place certain reporting obligations on financial institutions that are within the scope
of the EU’s CRD IV which are outlined in Note 36.
By order of the Board
Aarti Sharma
Managing Director & Chief Financial Officer &
Chief Executive Officer Company Secretary
April 26, 2018
 independent auditor report
Report of the independent auditor to the members of ICICI Bank UK PLC
1 Our opinion is unmodified The risk Our response
We have audited the financial statements of ICICI Bank UK Plc (“the Company”)
Where any alternation to the terms
for the year ended 31 March 2018 which comprise the Profit and Loss account, or conditions of a loan were made,
the Statement of Other Comprehensive Income, the Balance Sheet and the we have assessed whether the
Statement of Changes in Equity, and the related notes, including the accounting loan is captured as forborne.
policies in note 2. We have not audited the pro forma information labelled as
Disclosures: We have assessed
“convenience translation” (explained in note 2(b)) presented throughout the the Bank’s compliance with the
financial statements. relevant accounting standards
In our opinion the financial statements: including the adequacy of the
Bank’s disclosures in relation to
• t he financial statements give a true and fair view of the state of Company’s the subjectivity in impairment,
affairs as at 31 March 2018 and of its loss for the year then ended; credit risk and collateral, and
• h
 ave been properly prepared in accordance with UK accounting standards, forbearance.
including FRS 102 The Financial Reporting Standard applicable in the UK Our results
and Republic of Ireland; and The results of our testing indicated
• h
 ave been prepared in accordance with the requirements of the Companies that management’s judgments
were satisfactory and we
Act 2006.
considered the specific impairment
charge and provision recognised
Basis for opinion to be acceptable.
We conducted our audit in accordance with International Standards on Auditing
Collective Subjective Estimate: Our procedures included:
(UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described provision on
below. We believe that the audit evidence we have obtained is a sufficient and Where no specific Manual and automated
Loans and impairment is identified for controls: Testing the design,
appropriate basis for our opinion. Our audit opinion is consistent with our report Advances an exposure, a collective implementation and operating
to the audit committee.
(Charge to provision is calculated to effectiveness of key controls
We were appointed as auditor by the Directors on 2 July 2003. The period of total profit and loss: account for losses that are over the capture, monitoring and
uninterrupted engagement is for the 15 financial years ended 31 March 2018. $1 million; present in the portfolio but reporting of loans and advances to
We have fulfilled our ethical responsibilities under, and we remain independent 2017: $(0.5) not yet identified. customers, the governance of the
of the Company in accordance with, UK ethical requirements including the FRC million collective provision model, and the
A model is used to calculate input of key data into the collective
Ethical Standard as applied to public interest entities. No non-audit services Closing the level of provision for the provision model.
prohibited by that standard were provided. balance: $12 exposures which are not
million; 2017: specifically impaired, which Substantive procedures: We
2 Key audit matters: our assessment of risks of material misstatement $11 million) incorporates the following evaluated the model methodology
assumptions: and challenged management
Key audit matters are those matters that, in our professional judgment, were Refer to pages regarding the key assumptions
of most significance in the audit of the financial statements and include the 415 and 417 1) Probability of default: used. We also assessed reliability
most significant assessed risks of material misstatement (whether or not due (accounting the likelihood of an account and appropriateness of third
to fraud) identified by us, including those which had the greatest effect on: the policy) and falling into arrears and party data used as an input to
page 421-422 subsequently defaulting the collective provision model,
overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. We summarise below the key audit matters, (financial 2) loss given default: and the appropriateness of data
in decreasing order of audit significance, in arriving at our audit opinion above, disclosures). the loss expected on an sourced from the Parent Bank.
together with our key audit procedures to address those matters and, as required exposure once a borrower We have substantively tested the
has defaulted, which is completeness and accuracy of key
for public interest entities, our results from those procedures. These matters
impacted by the value of inputs (e.g. year end balances,
were addressed, and our results are based on procedures undertaken, in the collateral available, risk gradings) to the model, and
context of, and solely for the purpose of, our audit of the financial statements as performed a recalculation of the
3) Loss emergence period:
a whole, and in forming our opinion thereon, and consequently are incidental to provision. In assessing the model,
the length of the period
that opinion, and we do not provide a separate opinion on these matters. between the counterparty we compared the observed loss
incurring a loss and the history to the level of collective
The risk Our response point where it is identified provision and compared the
and confirmed coverage rates and emergence
Specific Subjective estimate: Our procedures included:
period used to externally available
impairment The carrying value of Manual and automated controls: In addition, a judgmental industry data.
on Loans and loans and advances held Testing the design, implementation economic scalar is applied
Advances by management to increase We have tested the internal
at amortised cost may be and operating effectiveness of
or decrease the probability controls over the application of
(Charge to materially mis-stated due key controls over the capture,
of default estimates within judgmental scalars. We have also
profit and loss: to impairment triggers monitoring and reporting of loans
the model to reflect the substantively tested all scalars
$76 million; not being identified or and advances to customers, and
prevailing economic applied, including recalculating
2017: $67 impairment charges not over the completeness of the
environment e.g. to account the amount and assessing the
million being reliably estimated, credit watchlist;
for any specific stress in a materiality of the impact on the
Closing or both. The identification Substantive procedures: We particular market. collective provision recognised.
balance: $134 of impairment triggers and tested all watchlist exposures and
the valuation techniques Our results
million; 2017: examined a risk-based sample
$86 million) used to assess the level of exposures not identified as The results of our testing
of impairment, such impaired and formed our own indicated that management’s
Refer to pages as estimates of future
judgment, based on the individual judgments were satisfactory and
415 and 416 cash flows or valuation facts and circumstances, as we considered the collective
(accounting of collateral, involves to whether this judgment was impairment charge and provision
policy) and significant management appropriate. recognised to be acceptable.
page 421-422 judgment.
(financial Where indicators of impairment 3 Our application of materiality and an overview of the scope of our audit
disclosures). The Bank’s exposures were identified, our reviews
include certain loans which included evaluation of the Materiality for the financial statements as a whole was set at $1,090,000 (2016:
are individually significant accuracy of individual impairment $906,000), determined with reference to a benchmark of profit before tax,
in size, primarily companies assessments by reperforming normalised by averaging the absolute values of the last five years’ profits and
linked to India, and some calculations and agreeing losses due to fluctuations in the business cycle. We set materiality at 5% of this
linked to volatile sectors data inputs to third party benchmark (2016: 7% of profit before tax, normalised by averaging over the last
such as commodities, and documentation, including valuation five years’ profits, net of losses).
where in some instances reports, and challenging key
repayment may be assumptions of expected future
We agreed to report to the Audit Committee any corrected or uncorrected
dependent on the successful cash flows, collateral valuation identified misstatements exceeding $54,500 (2017: $45,000), in addition to
realisation of collateral. and realisation assumptions, other identified misstatements that warranted reporting on qualitative grounds.
by inspecting third party Our audit of the company was undertaken to the materiality level specified
correspondence and independent above and was performed at the Bank’s registered office in London and the
valuation reports. Group head office in Mumbai, India. All procedures are scoped by the UK audit
team, however we engage our member firm in India to perform controls testing

407
 independent auditor report
and substantive procedures over the following processes which are outsourced
to the Group head office under service level agreements:
i) Loan operations
ii) Treasury operations, including the hedge accounting process
iii) Certain finance processes including key reconciliations
iv) Valuation controls and assessment of centralized valuation models
v) IT infrastructure and controls
We inspect the audit work performed by our network firm throughout the year,
and visit the India audit team each year to assess the audit work performed.
4 We have nothing to report on going concern
We are required to report to you if we have concluded that the use of the going
concern basis of accounting is inappropriate or there is an undisclosed material
uncertainty that may cast significant doubt over the use of that basis for a period
of at least twelve months from the date of approval of the financial statements.
We have nothing to report in these respects.
5 We have nothing to report on the strategic report and the directors’ report
The directors are responsible for the strategic report and the directors’ report.
Our opinion on the financial statements does not cover those reports and we do
not express an audit opinion thereon.
Our responsibility is to read the strategic report and the directors’ report and,
in doing so, consider whether, based on our financial statements audit work,
the information therein is materially misstated or inconsistent with the financial
statements or our audit knowledge. Based solely on that work:
• we have not identified material misstatements in those reports;
• in our opinion the information given in the strategic report the directors’
report for the financial year is consistent with the financial statements; and
• in our opinion those reports have been prepared in accordance with the
Companies Act 2006.
6 We have nothing to report on the other matters on which we are required to
report by exception
Under the Companies Act 2006, we are required to report to you if, in our
opinion:
• a
 dequate accounting records have not been kept by the Company, or
returns adequate for our audit have not been received from branches not
visited by us; or
• t he financial statements are not in agreement with the accounting records
and returns; or
• c
 ertain disclosures of directors’ remuneration specified by law are not made;
or
• w
 e have not received all the information and explanations we require for our
audit.
We have nothing to report in these respects.
7 Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 405, the Directors
are responsible for: the preparation of the financial statements including
being satisfied that they give a true and fair view; such internal control as
they determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error;
assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern; and using the going concern basis
of accounting unless they either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
408
fraud, other irregularities, or error, and to issue our opinion in an auditor’s
report. Reasonable assurance is a high level of assurance, but does not
guarantee that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements can arise from
fraud, other irregularities or error and are considered material if, individually
or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements. The risk of not
detecting a material misstatement resulting from fraud or other irregularities is
higher than for one resulting from error, as they may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control
and may involve any area of law and regulation not just those directly affecting
the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at
www.frc.org.uk/auditorsresponsibilities.
Irregularities – ability to detect
We identified areas of laws and regulations that could reasonably be expected
to have a material effect on the financial statements from our sector experience,
through discussion with the directors and other management (as required
by auditing standards), and from inspection of the company’s regulatory
correspondence.
We had regard to laws and regulations in areas that directly affect the financial
statements including financial reporting (including related company legislation)
and taxation legislation. We considered the extent of compliance with those laws
and regulations as part of our procedures on the related financial statements
items.
In addition we considered the impact of laws and regulations in the specific
areas of regulatory capital and liquidity and certain aspects of company
legislation recognising the financial and regulated nature of the company’s
activities and its legal form. With the exception of any known or possible non-
compliance, and as required by auditing standards, our work in respect of these
was limited to enquiry of the directors and other management and inspection of
regulatory correspondence. We considered the effect of any known or possible
non-compliance in these areas as part of our procedures on the related financial
statements items.
We communicated identified laws and regulations throughout our team and
remained alert to any indications of non-compliance throughout the audit.
As with any audit, there remained a higher risk of non-detection of non-
compliance with relevant laws and regulations (irregularities), as these may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal controls.
8 The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the Company’s members those matters we
are required to state to them in an auditor’s report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members, as a body, for
our audit work, for this report, or for the opinions we have formed.
David AT Todd (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
26 April 2018
profit and loss account
for the year ended March 31, 2018
Convenience translation
(Refer to Note 2 (b))

Year ended Year ended Year ended Year ended

March 31, March 31, March 31, March 31,
Note
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*

Interest income and similar income 5 115,269 118,410 7,513 7,717

Interest expense 6 (48,364) (52,884) (3,151) (3,447)

Net interest income 66,905 65,526 4,362 4,270

Fees and commissions receivable 8,135 9,217 530 601

Foreign exchange revaluation gains 6,907 4,572 451 297

Income/(Loss) on financial instruments at fair value through profit and loss 7 (2,282) (1,090) (149) (71)

Other operating income 599 665 39 43

Profit/(Loss) on sale of financial assets 2,960 4,619 193 301

Total revenue 83,224 83,509 5,426 5,441

Administrative expenses 8,9 (34,135) (33,050) (2,225) (2,154)

Depreciation 22 (782) (867) (51) (57)

Specific impairment on investment securities 21 (1) 0 - -

Impairment on loans and advances 20 (78,710) (68,181) (5,130) (4,444)

Operating (loss)/ profit before tax (30,404) (18,589) (1,980) (1,214)

Tax on operating (loss)/profit 11 4,856 2,507 316 163

(Loss) /Profit after tax (25,548) (16,082) (1,664) (1,051)

The result for the year is derived entirely from continuing activities. The notes on pages 413 to 433 form part of these financial statements.

* INR figures are unaudited

409
statement of other comprehensive income
for the year ended March 31, 2018
Convenience translation
(Refer to Note 2 (b))

March 31, March 31, March 31, March 31,

2018 2017 2018 2017
Note USD 000s USD 000s ` in million* ` in million*

(Loss)/ Profit on ordinary activities after tax (25,548) (16,082) (1,664) (1,051)

Other comprehensive Income

Movement in available for sale reserve

Movement in fair value during the year (2,542) 4,933 (167) 321

Taxation relating to available for sale reserve 565 (2,937) 37 (191)

Net movement in available for sale reserve (1,977) 1,996 (130) 130

Other comprehensive income for the period, net of tax (1,977) 1,996 (130) 130

Total comprehensive income for the year (27,525) (14,086) (1,794) (921)

The notes on pages 413 to 433 form part of these financial statements.

* INR figures are unaudited

410
balance sheet
at March 31, 2018
Convenience translation
(Refer to Note 2 (b))

March 31, March 31, March 31, March 31,

2018 2017 2018 2017
Note USD 000s USD 000s ` in million* ` in million

Assets

Cash and cash equivalents 16 500,246 333,702 32,604 21,749

Loans and advances to banks 17 137,553 55,226 8,965 3,599

Loans and advances to customers 18 2,365,651 2,332,132 154,181 151,997

Investment in Treasury Bills 21 192,094 74,127 12,520 4,831

Other Investment Securities 21 612,801 609,179 39,940 39,703

Derivative financial instruments 41 24,295 25,750 1,583 1,678

Tangible fixed assets 22 2,572 3,126 168 205

Intangible fixed assets 22 204 343 13 22

Other assets 23 30,380 29,326 1,980 1,911

Prepayment and accrued income 18,544 16,855 1,209 1,099

Total assets 3,884,340 3,479,766 253,163 226,794

Liabilities

Deposits by banks 24 916,438 602,425 59,729 39,262

Customer accounts 25 1,748,820 1,648,588 113,979 107,447

Bonds and medium term notes 26 359,781 344,197 23,449 22,433

Subordinated liabilities 27 149,880 176,149 9,768 11,481

Derivative financial instruments 41 17,572 15,719 1,145 1,025

Other liabilities 28 13,066 10,578 852 689

Accruals and deferred income 21,045 19,096 1,372 1,245

Repurchase Agreements 29 150,986 129,784 9,841 8,459

Total Liabilities 3,377,588 2,946,536 220,135 192,041

Shareholders’ funds:

Issued share capital 30 420,095 420,095 27,380 27,380

Capital contribution 10,168 9,121 663 594

Retained earnings 87,002 112,550 5,671 7,335

Available for sale reserve (10,513) (8,536) (686) (556)

Total Equity 506,752 533,230 33,028 34,753

Total Equity and Liabilities 3,884,340 3,479,766 253,163 226,794

The notes on pages 413 to 433 form part of these financial statements. These financial statements were approved by the Board of Directors on April 26, 2018 and were signed
on its behalf by:

Sudhir Dole Aarti Sharma

Managing Director & Chief Financial Officer
Chief Executive Officer & Company Secretary

ICICI Bank UK PLC

Registered number 4663024

* INR figures are unaudited

411
 statement of change in equity
for the year ended March 31, 2018 Continued
USD 000s
Issued Share Retained Other Capital Total
Capital earnings Comprehensive contribution
Income
As at April 1, 2016 420,095 128,632 (10,532) 7,332 545,527
Capital contribution (share based payments) - - - 1,789 1,789
Other comprehensive income - - 1,996 - 1,996
(Loss)/Profit on ordinary activities after tax - (16,082) - - (16,082)
Dividends paid - - - - -
As at April 1, 2017 420,095 112,550 (8,536) 9,121 533,230
Capital contribution (share based payments) - - - 1,047 1,047
Other comprehensive income - - (1,977) - (1,977)
(Loss)/Profit on ordinary activities after tax - (25,548) - - (25,548)
Dividends paid - - - - -
Closing shareholders’ funds as at March 31, 2018 420,095 87,002 (10,513) 10,168 506,752

The notes on pages 413 to 433 form part of these financial statements.

` in million*
Convenience translation* Issued Share Retained Other Capital Total
(Refer to Note 2 (b)) Capital earnings Comprehensive contribution
Income
As at April 1, 2016 27,380 8,386 (686) 478 35,558
Capital contribution (share based payments) - - - 116 116
Other comprehensive income - - 130 - 130
Profit on ordinary activities after tax - (1,051) - - (1,051)
Dividends paid - - - - -
As at April 1, 2017 27,380 7,335 (556) 594 34,753
Capital contribution (share based payments) - - - 69 69
Other comprehensive income - - (130) - (130)
(Loss)/Profit on ordinary activities after tax - (1,664) - - (1,664)
Dividends paid - - - - -
Closing shareholders’ funds as at March 31, 2018 27,380 5,671 (686) 663 33,028

The notes on pages 413 to 433 form part of these financial statements.

* INR figures are unaudited

412
notes
forming part of the financial statement
1 Reporting entity
ICICI Bank UK PLC (“ICICI Bank” or “the Bank”), is a Company incorporated
in the United Kingdom. The Bank’s registered address is - One Thomas More
Square, London E1W 1YN. The Bank is primarily involved in providing a wide
range of banking and financial services including retail banking, corporate and
commercial banking, trade finance and treasury services.
2 Basis of preparation
The Bank has prepared its annual accounts in accordance to Financial Reporting
Standard 102 (FRS 102), The Financial Reporting Standard applicable in the
UK and Republic of Ireland (‘FRS 102’) as issued in September 2015 with
reduced disclosures. The Bank has also chosen to apply the recognition and
measurement provision of IAS 39 Financial Instruments: Recognition and
Measurement (as adopted for use in the EU), in accordance with FRS 102.
In these financial statements, the Bank is considered to be a qualifying entity
and has applied the exemptions available under FRS 102 in respect of the
following disclosures:
• Cash Flow Statement and related notes;
• Key Management Personnel compensation; and
• Certain disclosures required by FRS 102.26 Share Based Payments.
The financial statements have been prepared under the historical cost convention
in accordance with the special provisions of Part XV of the Companies Act 2006
relating to banking companies and applicable accounting standards except for
derivative financial instruments, financial instruments at fair value through profit
or loss and available for sale financial assets which are valued at fair value.
The preparation of the financial statements requires management to make
judgements, estimates and assumptions that affect the amounts reported for
assets and liabilities as at the balance sheet date and the amounts reported
for revenues and expenses during the year. However, the nature of estimation
means that actual outcomes could differ from those estimates. The significant
judgements and estimates have been stated in note 4.
(a) Statement of Compliance
The financial statements of the Bank have been prepared in accordance
with Financial Reporting Standard 102 the Financial Reporting Standard
applicable in the UK and Republic of Ireland (“FRS 102”).
(b) Functional and presentation currency and convenience translation
The financial statements are prepared and presented in US Dollars, which
is the functional currency of the Bank as it represents the currency of the
primary economic environment in which the Bank operates. A significant
proportion of the Bank’s assets and revenues are transacted in US Dollars.
All amounts in the financial statements have been rounded to the nearest
$1,000. The financials are also presented in Indian Rupee (`) currency for
convenience using the year end exchange rate. These numbers are proforma
only and should not be regarded as being audited and in compliance with
FRS102.
(c) Cash flow exemptions
Under section 1 of FRS 102, the Bank is exempted from the requirement
to prepare a cash flow statement on the grounds that a parent undertaking
includes the Bank in its own published consolidated financial statements.
(See Note 44).
(d) Related party transactions
As the Bank is a wholly owned subsidiary of ICICI Bank Limited, the Bank
has taken advantage of the exemption contained in section 33 of FRS
102 and has therefore not disclosed transactions or balances with wholly
owned subsidiaries which form part of ICICI Bank Limited and disclosure
requirement of any transactions with key management personnel of the
entity or its parent. (See Note 44).
The company discloses transactions with related parties which are not
wholly owned with the same group. It does not disclose transactions with
members of the same group that are wholly owned.
(e) Going concern
The financial statements are prepared on a going concern basis as the Bank is
satisfied that it has the resources to continue its business for the foreseeable
future. The Bank meets its liquidity requirements through managing both
retail and wholesale funding sources and meets the regulatory liquidity
requirements through maintaining liquid assets. With regard to Capital, the
Bank maintains adequate surplus over regulatory capital requirements. The
Bank’s risk management policies and procedures are outlined in Note 38.
The Bank is a wholly owned subsidiary of ICICI Bank Limited. The parent
bank has issued a letter of comfort to the Bank’s regulators, the Financial
Services Authority (FSA), now the PRA, stating that the parent bank intends
to financially support the Bank in ensuring that it meets all of its financial
obligations as they fall due. In addition, the Bank’s forecasts and projections,
Continued
taking account of possible changes in its business model in subsequent
years, including stress testing and scenario analysis, show that the Bank
will be able to operate at adequate levels of both liquidity and capital for
the foreseeable future. In making their assessment, the Directors have
also considered future projections of profitability, cash flows and capital
resources as well as the strategic review of the business model which is
conducted on a periodic basis. The Bank has been maintaining adequate
capital and Tier 1 capital ratio. During FY2018, despite the losses, the capital
and liquidity position of the Bank remained adequate. The Directors are
satisfied that the Bank has adequate resources to continue in business for
the foreseeable future and therefore it is appropriate to prepare the Annual
Accounts on a going concern basis.
3 Significant accounting policies
The following accounting policies have been applied consistently in dealing
with items which are considered material in relation to the financial statements.
(a) Interest income and expense
Interest income and expense are recognised in profit and loss account using
the effective interest rate method. The effective interest rate is the rate that
exactly discounts the estimated future cash payments and receipts through
the expected life of the financial asset or liability (or where appropriate,
a shorter period) to the carrying amount of the financial asset or liability.
When calculating the effective interest rate, the Bank estimates the future
cash flows considering all contractual terms of the financial instruments
but not the credit losses. The effective interest rate is established on initial
recognition (or upon reclassification) of the financial asset and liability and
is not revised subsequently.
(b) Fees and commissions income and expense
Fees and commission are recognised in the profit and loss account when
the service has been rendered, except when those fees are an adjustment
to the yield on the related asset, in which case they are amortised over
the expected maturity of the asset using the effective interest rate method.
Fees and commissions which are directly attributable to the issuance of the
borrowings are expensed to the profit and loss account over the life of the
borrowing raised using the effective interest rate method and are included
in interest expense.
(c) Foreign Currencies
 Monetary assets and liabilities denominated in foreign currencies are
translated into US Dollars at the exchange rates ruling at the balance sheet
date and the gains or losses on translation are included in the profit and
loss account. Income and expenses denominated in foreign currencies are
converted into US Dollars at the rate of exchange ruling at the date of the
transaction. The Germany and Belgium branches are treated as an extension
of the UK bank’s activities and accordingly the translation approach is in
compliance with FRS 102.30.5.
Non-monetary items measured at historical cost are translated using the
exchange rate at the date of the transaction and non-monetary items
measured at fair value are measured using the exchange rate when fair
value was determined. Foreign exchange gains and losses resulting from
the settlement of transactions and from the translation at period-end
exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the profit and loss account.
(d) Financial assets and financial liabilities
The Bank initially recognises loans and advances, deposits, debt securities
issued and subordinated liabilities on the date of origination.
The Bank classifies its financial assets in the following categories: financial
instruments at fair value through profit and loss; loans and receivables;
available for sale financial assets and held to maturity investments. The
management determines the classification of financial assets at initial
recognition. The Bank derecognises financials assets if all the risks and
rewards of ownership of the financial asset are substantially transferred
and the bank recognises assets or liabilities for any rights and obligations
created or retained in the transfer. On derecognition of a financial asset in
its entirety, the difference between (a) the carrying amount and (b) the sum
of (i) the consideration received (including any new asset obtained less any
new liability assumed) and (ii) any cumulative gain or loss that had been
recognised in other comprehensive income is recognised in profit or loss. If
the Bank retains substantially all the risks and rewards of ownership of the
financial asset, the Bank continues to recognise the financial asset.
Financial instruments are recognised at trade date, being the date on which
the Bank commits to purchase or sell the instruments.
Financial liabilities (other than derivatives) are measured at amortised
cost and are recognised at value date (or settlement date). They are de-
recognised when liabilities are extinguished.
413
 notes
forming part of the financial statement
(e) Investment securities
Investment securities are initially measured at fair value plus incremental
direct transaction costs except when the investments are classified at fair
value through profit and loss as described in Note 3(h). The investments
are subsequently accounted for, depending on their classification, as either
held to maturity, loans and receivable, fair value through profit or loss, or
available for sale.
(f) Loans and receivables
Loans and receivables, which include loans and advances, finance lease
receivables and other receivables, are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active market and
which are not classified as held for trading, designated at fair value through
profit and loss, available for sale or held to maturity. Loans and receivables
are initially recognised at fair value including direct and incremental
transaction costs. They are subsequently valued at amortised cost using
effective interest rate method. Loans and receivables are stated at amortised
cost after deduction of amounts which are required as impairment
provisions. Where loans have been acquired at a premium or discount,
these premiums and discounts are amortised through the profit and loss
account from the date of acquisition to the expected date of maturity using
the effective interest rate method.
When the Bank purchases a financial asset and simultaneously enters into
an agreement to resell the asset (or a substantially similar asset) at a fixed
price on a future date (reverse repo), the arrangement is accounted for as a
loan or advance, and the underlying asset is not recognised in the financial
statements.
Policy in relation to impairment: The Policy on impairment of loans and
receivables is described in Note 4.
Policy in relation to write-offs: The Bank considers exposure for write off
when the prospect of recovery over the next 12 months is remote and
interest has not been serviced for the past 12 months. Any amount written
off is in the first instance applied against specific provision for the exposure.
In the normal course of business the loss to be written off will already have
been fully provided. Any decision for a write-off is approved by the Board
Credit Committee of the Bank.
Policy in relation to write back: If, in a subsequent period, the amount of
the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognised (such as an
improvement in the debtor’s credit rating), the previously recognised
impairment loss is reversed either directly or by adjusting an allowance
account. The reversal shall not result in a carrying amount of the financial
asset that exceeds what the amortised cost would have been had the
impairment not been recognised at the date the impairment is reversed. The
amount of the reversal of impairment allowance and any recovery related to
a written off asset shall be recognised in profit or loss.
(g) Fair value measurement
 Fair value is the amount for which an asset could be exchanged, or a
liability settled, between knowledgeable, willing parties in an arm’s length
transaction, on the measurement date. This is determined by reference to
the quoted bid price or asking price (as appropriate) in an active market
wherever possible.
When independent prices are not available or if the market for a financial
instrument is not active, fair values are determined by using valuation
techniques which refer to observable market data. These include comparison
with similar instruments where market observable prices exist, discounted
cash flow analysis, option pricing models and other valuation techniques
commonly used by market participants. Fair values of financial instruments
may be determined in whole or in part using valuation techniques that are
not supported by prices from current market transactions or observable
market data.
In case of unobservable inputs or in case of unlisted entities, the inputs
into valuations based on unobservable data are inherently uncertain
because there is little or no current market data available from which
the level at which an arm’s length transaction would occur under normal
business conditions could be determined. In such cases, estimates are
made in the valuation technique to reflect uncertainties in fair values
resulting from a lack of market data inputs. These include most recent
arm’s length transaction between knowledgeable, willing parties;
reference to fair value of a similar instrument; discounted cash flow; or
option pricing models.
However, the valuation techniques incorporate all factors that market
participants have considered in setting a price; and have been consistent
with accepted economic methodologies for pricing financial instruments.
Note 21 provide a detailed disclosure regarding classification and Fair value
of instruments held by the Bank.
414
Continued
(h) Financial instruments at fair value through profit and loss
 Financial instruments are classified in this category if they are held for
trading. Instruments are classified as held for trading if they are:
i) Acquired/incurred principally for the purposes of selling or repurchasing
in the near term;
ii) Part of a portfolio of identified financial instruments that are managed
together and for which there is evidence of a recent actual pattern of
short-term profit-taking; or
iii) 
It is a derivative (except for derivative that is a financial guarantee
contract or a designated as effective hedging instrument).
Financial instruments cannot be transferred into or out of this category after
inception except certain assets on reclassification. Financial instruments
included in this category are recognised initially at fair value and transaction
costs are taken directly to the profit and loss account. Financial instruments
at fair value through profit and loss include debt securities which are held
for trading and valued at fair value.
Derivatives are carried at fair value in the balance sheet and shown under
the heading ‘Derivative Financial instruments. Valuation adjustments to
cover credit and market liquidity risks are made with gains and losses taken
directly to the profit and loss account and reported within income/(loss)
on financial instruments at fair value through profit and loss. The credit
valuation adjustment is an adjustment to the valuation of Over the Counter
(OTC) derivative contracts to reflect within fair value the possibility that the
counterparty may default and that the Bank may not receive the full market
value of the transactions. The debit valuation adjustment is an adjustment
to the valuation of OTC derivative contracts to reflect within fair value the
possibility that the Bank may default, and that the Bank may not pay full
market value of the transactions.
Positive and negative fair values of derivatives are offset where the contracts
have been entered into under netting agreements or other arrangements
that represent a legally enforceable right of set-off, which will survive the
liquidation of either party, and there is the intention to settle net.
The Bank uses a Central Clearing Counterparty (CCP) for clearing its certain
classes of OTC derivatives to reduce counterparty credit risk.
(i) Held to maturity financial assets
 Held-to-maturity investments are non-derivative assets with fixed or
determinable payments and fixed maturity that the Bank has the positive
intent and ability to hold to maturity, and which are not designated at fair value
through profit or loss or as available for sale. Held-to-maturity investments are
carried at amortised cost using the effective interest method.
(j) Available for sale financial assets
Available for sale financial assets are those non-derivative financial assets
that are designated as available for sale and are not categorised into any
of the other categories described above. They are initially recognised
at fair value including direct and incremental transaction costs. They
are subsequently held at fair value. Gain or loss on an available-for-sale
financial asset is recognised in other comprehensive income, except for
impairment losses and foreign exchange gains and losses, until the financial
asset is derecognised. At that time the cumulative gain or loss previously
recognised in other comprehensive income is reclassified to profit or loss as
a reclassification adjustment. Interest calculated using the effective interest
method and the dividends on an available-for-sale equity instrument are
recognised in profit or loss when the right to receive payment is established.
Impairment losses on available for sale investment securities are recognised
by transferring the cumulative loss that has been recognised directly in
equity to profit and loss account. The cumulative loss that is removed
from equity and recognised in profit and loss is the difference between the
acquisition cost, net of any principal repayment and amortisation, and the
current fair value, less any impairment loss previously recognised in profit
or loss account.
If, in a subsequent period, the fair value of an impaired available for sale debt
security increases and the increase can be objectively related to an event
occurring after the impairment loss was recognised in profit or loss account,
the impairment loss is reversed, with the amount of the reversal recognised
in profit or loss account. However, any subsequent recovery in the fair value
of an impaired available for sale equity investment is recognised directly in
reserves since it cannot be reversed through the profit and loss account.
(k) Derivatives held for risk management purposes and hedge accounting
instruments and hedging activities
 Transactions are undertaken in derivative financial instruments
(derivatives), which include interest rate swaps, futures, forward rate
agreements, currency swaps, options and similar instruments, for
trading and non-trading purposes. Depending on the nature of the
notes
forming part of the financial statement
hedge, a relationship may be designated as a hedge instrument either for
a fair value of a recognised fixed rate asset or liability or an unrecognised
firm commitment (fair value hedge), a hedge of a forecasted transaction
or the variability of future cash flows of a floating rate asset or liability
(cash flow hedge) or a foreign-currency fair value or cash flow hedge
(foreign currency hedge). All derivatives are recorded under the heading
‘Derivative financial instruments’ on the balance sheet at their respective
fair values with unrealised gains and losses recorded in reserves in case
of cash flow hedge or in the profit and loss account in case of fair value
hedge. Derivatives that do not meet the criteria for designation as a
hedge instrument under IAS 39 at inception, or fail to meet the criteria
thereafter, are accounted for in other assets/other liabilities with changes
in fair value recorded in the profit and loss account.
Changes in the fair value of a derivative that is designated and qualifies as a
fair value hedge, along with the gain or loss on the hedged asset or liability
that is attributable to the hedged risk are recorded in the profit and loss
account. To the extent of the effectiveness of a hedge, changes in the fair
value of a derivative that is designated and qualifies as a cash flow hedge,
are recorded in reserves. For all hedging relationships, ineffectiveness
resulting from differences between the changes in fair value or cash flows
of the hedged item and changes in the fair value of the derivative are
recognised in the profit and loss account .
At the inception of a hedge transaction, the Bank formally documents the
hedging relationship and the risk management objective and strategy for
undertaking the hedge. This process includes identification of the hedging
instrument, hedged item, risk being hedged and the methodology for
measuring effectiveness. In addition, the Bank assesses both at the inception
of the hedge and on an ongoing quarterly basis, whether the derivative used
in the hedging transaction has been highly effective in offsetting changes in
fair value or cash flows of the hedged item, and whether the derivative is
expected to continue to be highly effective.
The Bank discontinues hedge accounting prospectively when it is either
determined that the derivative is no longer highly effective in offsetting
changes in the fair value or cash flows of a hedged item; the derivative
expires or is sold, terminated or exercised; the derivative is de-designated
because it is unlikely that a forecasted transaction will occur; or management
determines that designation of the derivative as a hedging instrument is no
longer appropriate.
When a fair value hedge is discontinued, the hedged asset or liability
is no longer adjusted for changes in fair value and the existing basis
adjustment is amortised or accreted over the remaining life of the asset
or liability. When a cash flow hedge is discontinued but the hedged cash
flow or forecasted transaction is still expected to occur, gains and losses
shall remain in reserves until the forecast transaction occurs. Gains and
losses are recognised in the profit and loss account immediately if the
cash flow hedge was discontinued because a forecasted transaction did
not occur.
(l) Other derivatives
The Bank may occasionally enter into a hybrid contract that consists of
a non-derivative host contract and an embedded derivative. The Bank
accounts for an embedded derivative separately from host contract when
the economic characteristics and risks of the embedded derivative are not
closely related to the economic characteristics and risks of the host contract,
a separate instrument with the same terms as the embedded derivative
would meet the definition of a derivative; and the hybrid contract is not
measured at fair value. A separated derivative may be designated as a
hedge; otherwise, the derivative is recorded as a freestanding derivative.
Such financial instruments stand extinguished at the time of conversion e.g.
debt into equity, sale and maturity.
(m) Sale and repurchase agreements
When securities are sold subject to a commitment to repurchase them at
a predetermined price (‘repos’), they remain on the balance sheet as, in
substance, these transactions are in the nature of secured borrowings. As
a result of these transactions, the Bank is unable to use, sell or pledge the
transferred assets for the duration of the transaction.
(n) Identification and measurement of impairment
Impairment provisions/charges are made where there is objective evidence
of impairment as a result of one or more events that occurred after the initial
recognition of the asset and that loss event (or events) has an impact on the
estimated future cash flows from the asset that can be reliably estimated.
Losses expected as a result of future events are not recognised. Evidence of
impairment is considered on both individual and portfolio basis.
Refer Note 4 (a) and Note 4 (b) for the detailed policy guidance.
Continued
(o) Fixed assets
 Fixed assets are stated at cost less accumulated depreciation and
impairment. Cost includes expenditures that are directly attributable to the
acquisition of the asset
Depreciation is provided to write off the cost less the estimated residual
value of tangible fixed assets. Depreciation on intangible assets is provided
on a straight-line basis over their estimated useful economic life. The useful
economic life of the fixed assets is expected as follows:
Leasehold improvements Over the lease period
Office equipment 6 – 7 years
Furniture, fixtures and fittings 6 – 7 years
Computer hardware 3 – 4 years
Software Over the estimated useful life1
1The useful life is on an average is currently between 1-5 years
Depreciation methods, useful life and residual values are reviewed at each
balance sheet date. Depreciation is charged to the profit and loss account
for all the fixed assets.
(p) Provisions
Provisions are recognised when it is probable that an outflow of economic
benefits will be required to settle a present, legal or constructive obligation,
which has arisen as a result of a past event and for which a reliable estimate
can be made of the amount of the obligation. All significant provisions have
been discounted for current market assessments and the time value of
money.
(q) Deposits, debt securities issued and subordinated liabilities
 Deposits, debt securities issued and subordinated liabilities are the
sources of debt funding. These are initially measured at fair value plus
directly attributable transaction costs, and subsequently measured at their
amortised cost using the effective interest method.
(r) Income tax expense
Income tax expense comprises current and deferred tax. Income tax and
deferred tax expense is recognised in the profit and loss statement except
to the extent that it relates to items recognised directly in equity, in which
case it is recognised in equity.
Current tax is the expected tax payable or receivable on the taxable income
or loss for the year, using tax rates enacted or substantially enacted at the
reporting date and includes any adjustment to tax payable in respect of
previous years.
Deferred tax is recognised, in respect of all timing differences between the
carrying amounts of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes including carry forward losses. As
required by section 29 of FRS 102 “Deferred Tax”, deferred tax is measured
at the tax rates expected to be applied to the temporary difference when
they reverse, based on the tax laws that have been enacted or substantially
enacted by the reporting date. Deferred tax assets are recognised to the
extent that, on the basis of all available evidence, it can be regarded as more
likely than not that there will be sufficient future taxable profits from which
the future reversal of the underlying timing differences can be deducted.
A deferred tax asset is recognised only to the extent that it is probable
that future taxable profits will be available against which the asset can be
utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
(s) Employee benefits
 The Bank operates a stakeholder defined contribution pension scheme.
Contributions to the scheme are charged to the profit and loss account as
incurred.
(t) Leases
Operating lease rentals are charged to the profit and loss account on a
straight line basis over the non-cancellable lease term provided the same is
ascertainable unless another basis is more appropriate.
Income from sub lease: Income from sub lease is booked in other operating
income line of the profit and loss account on a straight line basis over the
remaining term of the sub lease.
(u) Share based payments
 The Parent Bank (ICICI Bank Limited) has issued share options to the
employees of ICICI Bank UK PLC. These transactions are recognised as
equity-settled share based payments. The expense is recognised over the
vesting period based on the market value of shares as on the date of grant
of shares, adjusted for the number of the employees leaving the Bank. A
415
 notes
forming part of the financial statement
capital contribution from the Parent Bank is recognised in the books over
the vesting period in the shareholders’ funds. Under FRS 102 Section 26,
a subsidiary should recognise an expense in its profit and loss account to
reflect the effective remuneration paid to employees in respect of share
awards granted by the Parent Bank. The corresponding entry is to equity as
the amounts are considered to be capital contributions by the Parent Bank.
As the Bank is a wholly owned subsidiary of ICICI Bank Limited, the Bank
has taken advantage of the exemption contained in section 26 of FRS 102
and has therefore not disclosed certain information under section 26.18(b),
26.19 to 26.23 of FRS 102.
(v) Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted
balances held with central banks and highly liquid financial assets
with original maturities of less than three months, which are subject to
insignificant risk of changes in their fair value, and are used by the Bank in
the management of its short-term commitments.
(w) Other liabilities
 The other liabilities consist of liabilities for the creditors, settlement
balances, derivatives financial instruments, Corporation tax payable and
other creditors. The derivative financial instruments are measured at fair
value through profit and loss; other creditors are measured at amortised
cost. These liabilities are de-recognised when liabilities are extinguished.
(x) Share Capital
Shares are classified as equity when there is no contractual obligation to
transfer cash or other financial assets. Incremental costs directly attributable
to the issue of equity instruments are shown in equity as a deduction from
proceeds, net of tax.
4 Significant judgements and estimates
 The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts
of assets, liabilities, income and expenses. Estimates, judgements and
assumptions are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to
be reasonable under the circumstances. Considering the inherent uncertainty
and subjectivity in making judgements and estimates, outcomes in future
periods may be different from those on which the management’s estimates
are based. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected. The accounting
policies deemed critical to the Bank’s results and financial position, based upon
significant judgements and estimates, are discussed below.
(a) Allowances for credit losses
 The Bank regularly reviews its loan portfolio to assess for impairment.
Provisions are established to recognise incurred losses in the loan portfolio
carried at amortised cost. In determining whether an impairment has
occurred at the balance sheet date, the Bank assesses if there is objective
evidence of impairment as a result of one or more events that occurred
after the initial recognition of the asset (a ‘loss event’) and that loss event
(or events) has an impact on the estimated future cash flows of the
financial asset or group of financial assets that can be reliably estimated.
It may not be possible to identify a single, discrete event that caused the
impairment rather the combined effect of several events may have caused
the impairment.
The Credit Risk Management Policy (CRMP) outlines the provisioning
policy of the Bank which includes the approach to holding collective and
specific provisions. During the year, the policy was amended for enhancing
the objectivity in the impairment classification process and to enhance the
alignment with regulatory benchmarks for exposures in default.
i) All exposures past due for 90 days or more are classified as impaired
unless restructuring terms have been substantially agreed and are due
to be implemented over next 60 days.
iii)
The Bank’s policies governing specific impairment, restructuring/
renegotiation and collective provision are detailed below:
ii) Specific impairment: In accordance with the Bank’s Credit Risk
Management Policy (CRMP), the Bank identifies on a monthly basis,
cases that are internally rated ‘B’ or below and/or significantly in breach
of any covenants, including delays in debt servicing and/or where there
is an expectation of significant credit deterioration.

Borrower’s financial difficulty/credit deterioration/trigger event: The
Bank assesses an asset for specific impairment if it becomes probable that
the borrower is facing significant financial difficulty. The Bank also assesses
for specific impairment and makes specific provision if necessary, if there is
evidence of any significant credit deterioration or any event which indicates
a reduced ability for the borrower to repay its interest and principal. The
indicators of impairment can include, among other things:
416
Continued
a) Net worth of the risk counterparty/borrower turning negative
b) Delay in interest and or principal repayments
c) Breach in financial covenants
d) Likelihood of borrower entering bankruptcy/ financial reorganization.
e) Rating downgrade by external credit rating agencies.
f) National or local economic conditions that correlate with defaults on the
assets in the borrower group (e.g. an increase in the unemployment rate
in the geographical area of the borrowers, a decrease in oil prices for
loan assets to oil producers, or adverse changes in industry conditions
that affect the borrowers in the group).
g) Substantial decline in value of security provided to the Bank, especially
when security is prime consideration for the lending. The unsecured
portion of the exposure may be subjected to impairment testing.
h) 
Invocation of contractual comfort by the Bank such as corporate
guarantee/put option which is not honoured by the counterparty.
Identification of specific impairment in an account: The Bank’s policy
is to identify and recognize impairment in a loan when it is probable that
the Bank will not be able to collect, or there is no longer a reasonable
certainty that the Bank will collect all amounts due according to the
contractual terms of the loan agreement. The Bank’s policy is to identify
and recognize impairment in a loan when it is probable that the Bank will
not be able to collect, or there is no longer a reasonable certainty that
the Bank will collect all amounts due according to the contractual terms
of the loan agreement.
The following disclosure practices have been adopted in Note 19:
• L
 oans are disclosed as impaired where an individual allowance has
been raised against the loan.
• A
 ll exposures past due for 90 days or more are classified as impaired
unless restructuring terms have been substantially agreed and are
due to be implemented over next 60 days.
• E
 xposures past due for less than 90 days not classified as impaired
include (i) loans with overdue principal, interest or other amounts at
the balance sheet date but no loss is expected; and (ii) past due loans
with adequate collateral cover.
The objective of the policy is to maintain an appropriate level of
provision reflective of the risk profile of the loan portfolio. It is not the
Bank’s policy to systematically over-provide or under-provide for its
Credit Risk. The provision weightings included in the policy document
are continually monitored against the lending experience of the Bank
and are periodically adjusted to reflect such experience.
The Bank’s policy is predicated on the premise that regardless of the quality
of a lending institution and of its systems and procedures and of its client
base the business of extending credit carries the intrinsic risk of such credit
not being repaid and monies advanced proving to be irrecoverable. In
accordance with the guidelines of FRS 102, an impairment loss for financial
assets measured at amortized cost is the difference between the asset’s
carrying amount and the present value of the estimated future cash flows
discounted at the asset’s original effective interest rate. The estimated
future cash flows take into account only the credit losses that have been
incurred at the time of the impairment loss calculation. In case the expected
cash flows are not available, the breakup value of security/collateral for
respective facilities under watch is calculated in accordance with the
Bank’s collateral valuation policy. In line with accounting guidelines, the
Bank recognises an impairment loss equal to the best estimate within the
range of reasonably possibly outcomes, taking into account all relevant
information available about conditions existing at the end of the reporting
period. For determining the specific provisions on individual impaired
cases, the management exercises judgment involving matters such as
realisable value of the security, estimation of the future cash flows and their
timing. Consequently these allowances can be subject to variation as time
progresses and the circumstances of the borrower become clearer.

Restructured/renegotiated cases and Forbearance: A restructured
account is one where the Bank, for economic or legal reasons relating
to the borrower’s difficulty, grants to the borrower concessions that
the Bank would not otherwise consider. Restructuring would normally
involve modification of the terms of advances/securities which could
include alteration of repayment period/repayable amount/the amount of
instalments/rate of interest (due to reasons other than competition). The
restructuring of an asset is only granted in situations where the customer
has showed a willingness to repay the borrowing and is expected to be
able to meet the revised terms of the restructuring. The Bank measures
a restructured troubled loan by reducing its recorded value to its net
realisable value, taking into account the cost of all concessions at the
date of the restructuring. The reduction in the carrying value is recorded
as a charge to the profit and loss statement in the period in which the
loan is restructured.
notes
forming part of the financial statement Continued
Continued
In relation to loans and advances, the modifications of terms and objective evidence of impairment, the Bank considers the performance of
conditions related to security and collateral arrangements or the waiver the underlying collateral, changes in credit rating, credit enhancements,
of certain covenants which do not affect payment arrangements, are default events etc. Once impairment has been identified, the amount of
not regarded as sufficient indicators of impairment or restructuring, impairment is measured based on the difference between the acquisition
as such changes do not necessarily indicate credit issues affecting the cost (net of any principal repayment and amortisation) and current
borrower’s payment ability. fair value, less any impairment loss previously recognised in profit or
The Bank charges penal interest to the borrower for any delay in interest/ loss. In determining whether an impairment event has occurred at the
principal payment unless a waiver has been approved by the Bank’s balance sheet date, the Bank considers whether there is any observable
relevant authority. As per the Bank’s practice, such waivers are given in data which comprises evidence of the occurrence of a loss event, and
exceptional circumstances which could be mainly related to procedural evidence that the loss event results in a decrease in estimated future
delays in receiving the interest/principal payment by the due date. cash flows or their timings. Such observable data includes any adverse
change in the payment status of borrowers or changes in economic
The Bank derecognises a loan when there are substantial modifications conditions that correlate with defaults on loan repayment obligations.
to the terms of the loan on restructuring The Bank performs qualitative
and quantitative evaluation of whether cash flows of original assets and Available-for-sale equity investments: A significant or prolonged decline
the modified or replacement assets are substantially different. in the fair value of the equity below its cost is an objective evidence of
impairment. In assessing whether it is significant, the decline in fair value
iv)
Collective provision: Collectively assessed impairment allowances is evaluated against the original cost of the asset at initial recognition. In
cover credit losses inherent in portfolios with similar economic assessing whether it is prolonged, the decline is evaluated against the
characteristics, when there is objective evidence to suggest that they continuous period in which the fair value of the asset has been below its
contain impaired claims, but, the individual impaired items cannot original cost at initial recognition.
yet be identified. In assessing the need for collective impairment
allowances, management considers factors such as historical loss The negative mark to market (MTM) on the AFS portfolio is monitored by the
trends, credit quality of the portfolio, portfolio size, concentrations, Bank on a regular basis. The Bank follows its valuation policy for valuing its
and economic factors. The aggregate amount of specific and AFS portfolio (refer point (c) relating to ‘Valuation of financial instruments’
collective provisions is intended to be sufficient to absorb estimated below).
credit losses generated in the loan portfolio.
(c) Valuation of financial instruments
The collective impairment policy as defined in the CRMP stipulates that  The Bank values its available for sale and held for trading investment
collective provision, based on the credit rating of the exposures, needs securities at fair market value. The best evidence of fair value is a quoted
to be provided in respect of the entire performing loan and receivables price in an actively traded market. If the market for a financial instrument is
portfolio. The Bank has followed FRS 102 guidelines for defining its not active, or the financial instruments are traded infrequently and have little
collective impairment policy wherein the provisioning is determined by price transparency or the fair value is less objective, and requires varying
the extent of the underlying credit risk in the portfolio of the Bank. This degrees of judgment, the Bank uses valuation techniques to arrive at the fair
is also the direction provided by the Basel Accord. The exposures that value. The valuation techniques employ observable market data to calculate
are individually assessed for impairment and for which an impairment fair values, including comparisons with similar financial instruments
loss is or continues to be recognised, are not included in the collective for which market observable prices exist. When valuing instruments by
assessment of impairment. In line with market practice, the Bank has reference to comparable instruments, management takes into account the
been using a representative set of Probability of Default (PD)/Loss Given maturity, structure and rating of the instrument with which the position held
Default (LGD) data to determine the extent of provisioning required to is being compared. The Bank values the equity option embedded in the
be made by the Bank in respect of its performing loan portfolio on a financial instruments such as FCCBs based on valuation techniques with
collective basis. The aggregate provisioning requirement is arrived observable market inputs.
at by multiplying the outstanding amounts under each portfolio type
(internally rated and externally rated exposures) on the relevant date (d) Deferred Tax Asset
with the corresponding PD and LGD.
 A Deferred Tax Asset (DTA) is recognised after being assessed as
In the absence of adequate internal default history and on account recoverable on the basis of available evidence including projected profits,
of a similar internal credit rating scale, the Bank has used Probability capital and liquidity position. The management makes an assessment of a
of Default (PD) data of its Parent (ICICI Bank Limited) for estimating deferred tax asset which is recognised only to the extent that it is probable
the collective provisioning on its internally rated India country that future taxable profits will be available against which the asset can be
of exposure portfolio. For the internally rated non-India country utilised. Deferred tax assets are reviewed at each reporting date and are
of exposure portfolio, the Bank has used PD data from Moody’s, reduced to the extent that it is no longer probable that the related tax benefit
corresponding to the geographies which make up the majority of its will be realised.
non-India exposures. The Bank considers a time horizon of one year
to be appropriate for estimating collective provisions, as it believes 5 Interest income and similar income
that this is reflective of the emergence period for losses in its portfolio. Interest income is recognised in profit and loss using the effective interest
The Bank has used historical PDs over a ten year look back period rate method. The effective interest rate is the rate that exactly discounts the
for the India-linked, non-India linked and externally rated portfolios estimated future cash receipts through the expected life of the financial
to calculate the collective provision. The Bank has a framework for instrument (or where appropriate, a shorter period) to the carrying amount of
applying economic scalars for each portfolio which are applied while the financial asset.
estimating the collective provision and are reviewed periodically. The
economic scalars takes into account macroeconomic factors as well Year Year Year Year
as variables relevant to the Bank’s customer base. The LGD for the ended ended ended ended
externally rated ABS portfolio has been assumed at 50.0% based on March 31, March 31, March 31, March 31,
S&P’s experience of recovery rates. For the internally rated portfolio, 2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
the LGD has been calculated based on the collateral available with the
Bank. LGD and haircuts applicable for each collateral as prescribed Interest income on financial 11,523 10,602 751 691
in Basel II guidelines have been considered. The historical average assets under AFS category
PD data being used covers a full economic cycle and captures Interest income on financial 9,940 10,021 648 653
periods of low economic activity when relatively higher default rates assets under HTM category
were observed. Interest income on financial 90,851 95,693 5,921 6,237
assets under Loans and
(b) Impairment of available for sale financial assets receivable category
 The Bank regularly reviews its available for sale securities portfolio Interest income on financial 2,955 2,094 193 136
to assess for impairment. The Bank considers all available evidence, assets measured at FVTPL
including observable market data or information about events specifically
Total 115,269 118,410 7,513 7,717
relating to the securities which may result in a shortfall in recovery of
future cash flows. These events may include a significant financial
difficulty of the issuer, a breach of contract such as a default, bankruptcy 6 Interest expenses
or other financial reorganisation, or the disappearance of an active Interest expense is recognised in profit and loss using the effective interest
market for the debt security because of financial difficulties relating to rate method. The effective interest rate is the rate that exactly discounts the
the issuer, information about the issuer’s liquidity, business and financial estimated future cash payments through the expected life of the financial
risk exposures, level of and trends in default for similar financial assets liability (or where appropriate, a shorter period) to the carrying amount of the
and national and local economic conditions. While assessing ABS for financial liability.
* INR figures are unaudited 417
 notes
forming part of the financial statement Continued

Year Year Year Year 10 Segmental reporting

ended ended ended ended The Board reviews the Bank’s performance as a single business and does not
March 31, March 31, March 31, March 31, seek to allocate major resources such as capital, liquidity and funding into the
2018 2017 2018 2017 different customer groups (Corporate and Commercial, Retail and Treasury).
USD 000s USD 000s ` in million* ` in million*
Interest expense on financial (48,364) (52,884) (3,151) (3,447) 11 Taxation
liabilities measured at (a) Analysis of charge in the year
amortised cost
Total (48,364) (52,884) (3,151) (3,447) Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
7 Income/(Loss) on financial instruments at fair value through profit and loss 2018 2017 2018 2017
(Loss)/Income on financial instruments at fair value through profit and loss USD 000s USD 000s ` in million* ` in million*
consists of unrealised and realised gains or losses on transactions in securities UK Corporation tax at 19%
and derivatives.. (2017: 20%)
Overseas corporation
Year Year Year Year charge 1279 2159 84 141
ended ended ended ended
Double Tax Relief - - - -
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 Adjustments for prior years (279) (1,381) (18) (90)
USD 000s USD 000s ` in million* ` in million* 1,000 778 66 51
Realised gains/(losses) on Deferred tax charge/(credit) - - - -
derivative instruments 4,379 3,071 285 200 - Origination/timing and rate
Unrealised gains/(losses) on difference (5,856) (3,285) (382) (214)
derivative instruments# (6,661) (4,161) (434) (271) Total Tax for the year
ended March 31 (4,856) (2,507) (316) (163)
Total (2,282) (1,090) (149) (71)

#
includes MTM on terminated hedge deals having an offset in NII on account of (b) Analysis of total taxation in the year
amortisation of MTM on the underlying deals..
USD 000s
Year ended March 31, 2018 Year ended March 31, 2017
8 Administrative expenses
Current Deferred Total Current Deferred Total
tax tax tax tax tax tax
Year Year Year Year
ended ended ended ended
Recognised in
March 31, March 31, March 31, March 31,
Profit and loss
2018 2017 2018 2017
account 1000 (5,856) (4,856) 778 (3,285) (2,507)
USD 000s USD 000s ` in million* ` in million* Recognised
Staff costs (including in other
Directors' emoluments): comprehensive
income# - (565) (565) 1,456 1,481 2,937
- Wages and salaries 19,373 18,277 1,263 1,191
- Social security costs 1,623 1,276 106 83 Total tax 1000 (6,421) (5,421) 2,234 (1,804) 430
- Other pension costs 475 457 31 30
` in million*
Operating lease expenses 1,836 2,555 120 167
Year ended March 31, 2018 Year ended March 31, 2017
Other administrative Current Deferred Total Current Deferred Total
expenses 10,828 10,485 705 683
tax tax tax tax tax tax
Total 34,135 33,050 2,225 2,154 Recognised in
The number of persons employed by the Bank (including Directors) during the Profit and loss
year was as follows: account 66 (382) (316) 51 (214) (163)
Recognised
Year ended Year ended in other
March 31, March 31, comprehensive
2018 2017
income# - (37) (37) 95 97 192
No. of No. of
Employees Employees Total tax 66 (419) (353) 146 (117) 29
Management 55 51 #
The USD 1.5 million current tax charge to OCI is a prior year adjustment
Non Management 123 141 relating to the change in the tax rules and includes amounts relating to 2017.
Total 178 192
(c) Total tax reconciliation
Year Year Year Year
9 Auditor’s remuneration ended ended ended ended
March 31, March 31, March 31, March 31,
Year Year Year Year 2018 2017 2018 2017
ended ended ended ended USD 000s USD 000s ` in million* ` in million*
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 (Loss)/Profit before tax (30,404) (18,589) (1,980) (1,214)
USD 000s USD 000s ` in million* ` in million* Tax using the UK CT rate of
Fees payable to the Bank's 20% (2017: 20%) (5,777) (3,718) (376) (242)
statutory auditors and their Add effects of:
associates for the audit of - Overseas corporate taxes 1,279 2,159 83 141
Bank’s annual accounts 475 436 31 29 - Expenses not tax
Fees payable to the Bank’s deductible 13 336 1 22
statutory auditors and their - On timing differences (72) (15) (5) (1)
associates for other services:
- Adjustment for prior years (292) (1,381) (19) (90)
Audit related assurance
- Rate differential/reversal
services 399 417 26 27 of DTA (7) 112 - 7
Tax compliance services# - 7 - -
Total tax for year ended
Total 874 860 57 56 March 31 (4,856) (2,507) (316) (163)
#
During FY2017, the Bank engaged another firm to provide tax compliance
services following EU audit reform based on which the statutory auditors are
not permitted to provide tax compliance services.

418 * INR figures are unaudited

notes
forming part of the financial statement Continued

(d) Movement in Deferred tax: One) under a money purchase pension scheme amounted to USD 24,976
(`* 1,627,799) in the current year (2017: USD 23,139; `* 1,508,109). Stock
Year Year Year Year
ended ended ended ended options2 were granted and exercised by one director (2017: One).
March 31, March 31, March 31, March 31, 1 Gross emoluments include base salary and performance bonus
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
2 Refer note 13 for the details of the stock option scheme.

Deferred Tax Asset 13 Share-based payments

Balance as at April 1 4,266 44 278 3 During the year, USD 1.0 million (`* 67.8 million) was charged to the profit and
loss account in respect of equity-settled share-based payment transactions
Origination and timing
(2017: USD 1.8 million; `* 116.6 million). This expense, which was computed
differences;
from the fair values of the share-based payment transactions when granted,
- on consolidated taxable arose under employee share awards made in accordance with the ICICI Bank
losses 4,889 1,773 319 116 Limited group’s reward structures.
- on timing difference on
fixed assets 72 142 5 9 Stock Option Scheme
In terms of an Employee Stock Option Scheme (ESOS), of the Parent Bank,
- on AFS losses 447 2,307 29 150
options are granted to eligible employees and Directors of the Bank and its
9,674 4,266 631 278 subsidiaries. As per the ESOS as amended from time to time, the maximum
Deferred Tax Liability number of options granted to any employee/Director in a year is limited to
0.05% of the Parent Bank’s issued equity shares at the time of the grant, and
Balance as at April 1 (2,419) - (158) -
the aggregate of all such options is limited to 10% of Parent Bank’s issued
Origination and timing equity shares on the date of the grant. Until April 2013, options granted vest in
differences; a graded manner over a four year period, with 20%, 20%, 30% and 30% of the
- on AFS transitional grants vesting in each year, commencing from the end of 12 months from the
adjustment 1,013 (2,275) 66 (149) date of grant. Options granted from April 2014 onwards vest in a graded manner
over a three-year period, with 30%, 30%, and 40% of the grants vesting in each
- on equity gains - (144) - (9) year, commencing from the end of 12 months from the date of grant. During
(1,406) (2,419) (92) (158) FY2017, the Parent Bank modified the terms of the scheme by amending the
Net Deferred Tax as at exercise period from ‘ten years from the date of grant or five years from the date
March 31 8,268 1,847 539 120 of vesting whichever is later’ to ‘ten years from the date of vesting’. The option
expires after the exercisable period is over as above.
(e) Deferred tax is composed of the tax impact of the following items:
14 Related party transaction
Year Year Year Year The Bank enters into transactions with other related parties in the ordinary course
ended ended ended ended of business. During the year, the Bank has not entered into any transactions with
March 31, March 31, March 31, March 31,
2018 2017 2018 2017 other related parties. The Bank is exempt from disclosing other related party
USD 000s USD 000s ` in million* ` in million* transactions as they are with the companies that are wholly owned within the
Group. (see note 2 (d))
Effect of:
- On consolidated losses 6,662 1,773 434 115 15 Financial Services Compensation Scheme
- On timing difference on The Financial Services Compensation Scheme (‘FSCS’) has provided

fixed assets 257 185 17 12 compensation to consumers following the collapse during 2008 of a number
of deposit takers such as Bradford & Bingley plc, Heritable Bank plc, Kaupthing
- On equity gains (149) (144) (10) (9) Singer & Friedlander Limited, Landsbanki ‘Icesave’, Dunfermline Building
- On AFS 1,498 33 98 2 Society and London Scottish Bank plc. The protection of consumer deposits
is currently funded through loans from the Bank of England and HM Treasury.
Total 8,268 1,847 539 120 The Bank could be liable to pay a proportion of the outstanding borrowings
that the FSCS has borrowed from HM Treasury which is currently forecasted
(f) Factors that may affect future tax charges: Reductions in the UK corporation at GBP 98 million, offset by recoveries of GBP 37 million, as per the FSCS Plan
tax rate from 20% to 19% (effective from April 1, 2017) and to 17% (effective and Budget for 2018/2019. The Bank is also obligated to pay its share of forecast
April 1, 2020) were substantively enacted on October 26, 2015 and September management expenses based on the Bank’s market share of deposits protected
6, 2016 respectively. These reductions will reduce the company’s future current under the FSCS. This levy is called the specified deposit defaults (SDD) levy. As
tax charge accordingly. The deferred tax asset created on consolidated losses per the FSCS Plan and Budget for 2018/2019, FSCS expects to levy the deposit
and timing difference on fixed assets amounting to USD 6.9 million is expected taking sector a total of GBP 336 million of indicative annual levy compared to a
to be utilised in the foreseeable future against future profits. As per the Finance final levy of GBP 316 million for 2017/18. The Bank is obligated to pay its share
Act 2017, the carry forward of losses arising pre April 1, 2017 will be subject to of interest cost based on the Bank’s market share of deposits protected under
the loss restriction rules and would therefore only be available for offset against the FSCS. The actual amount of levy will be billed to the Bank based on its share
50% of profits (subject to an amount of £5 million which can be relieved in full). of deposits protected under the FSCS.
The deferred tax liability of USD 0.15 million pertains to the gain on transfer The Bank has recognized an expense of USD 0.5 million (`* 35 million) during
of shares under share by share scheme. This liability would be payable at the FY2018 (FY2017: USD 1.1 million; `* 71 million), in respect of all statutory
time of sale of shares in future. The net deferred tax asset on AFS of USD 1.5 levies. This mainly includes the Bank’s share of the SDD levy management
million represents deferred tax asset of USD 2.8 million created on unrealised expense, including interest costs and regular deposit protection charges. The
Available For Sale (AFS) losses less deferred tax liabilities of USD 1.3 million Bank has accrued the SDD levy based on its estimated share of total market
reflecting liabilities pursuant to amendments in Finance Act 2015, relating to protected deposits. The Bank has adopted IFRIC 21 ‘Levies’, effective FY2014 for
change in the timing of AFS gains and losses. As per UK tax law, the unused accounting of the FSCS liability as there is no equivalent guidance within FRS
trading losses could be carried forward indefinitely. Tax rate for the Germany 102 and section 10 of FRS 102 (Accounting Policies) that allows for the use of
branch was 27.4% for FY2018. alternative accounting framework, where this is the case.

12 Emoluments of Directors 16 Cash and cash equivalents

March 31, March 31, March 31, March 31,
Year Year Year Year 2018 2017 2018 2017
ended ended ended ended USD 000s USD 000s ` in million* ` in million*
March 31, March 31, March 31, March 31,
Cash 397 377 26 25
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million* Balances with Banks
Directors’ fees and gross -Central Bank 446,266 281,910 29,086 18,373
emoluments 948 823 62 54 -Other banks 53,583 51,415 3,492 3,351
The gross emoluments1 of the highest paid director were USD 582,399 Total 500,246 333,702 32,604 21,749
(`* 37,957,828) (2017: USD 462,787; `* 30,162,171) excluding share based
payments. Post-employment benefits accruing for one director (2017:

* INR figures are unaudited 419

 notes
forming part of the financial statement Continued
17 Loans and advances to banks (b) Finance lease receivables
(a) Residual Maturity Residual Maturity

March 31, March 31, March 31, March 31, March 31, March 31,
2018 2017 2018 2017 2018 2018
` in million* ` in million*
USD 000s USD 000s ` in million* ` in million*
Banks Remaining Maturity :
Repayable on demand - - - - Over 5 years 2,206 143
Other loans and advances 5 years or less but over 1 year 12,101 789
Remaining Maturity : 1 year or less but over 3 months 3,530 230
1 year or less but over 3 months 40,082 51 2,612 3 3 months or less 793 52
3 months or less 96,335 55,007 6,279 3,585 Sub total 18,630 1,214
136,417 55,058 8,891 3,588 Unearned income (1,189) (77)
Collective provision (46) (3)
Parent and Group Companies Specific impairment allowance - -
Repayable on demand - - - - Net investment in finance lease receivables 17,395 1,134
Other loans and advances Over 5 years 2,146 140
Remaining Maturity : 5 years or less but over 1 year 11,326 738
5 year or less but over 1 year 1,049 - 68 - 1 year or less but over 3 months 3,237 211
1 year or less but over 3 months 103 - 7 - 3 months or less 686 45
3 months or less - 208 - 14 17,395 1,134
1,152 208 75 14 As at March 31, 2018, the Geographical concentrations of Net investment in
Sub Total 137,569 55,266 8,966 3,602 finance lease receivables is in the UK. (2017: Nil Gross and Net investment)
Collective provision (16) (40) (1) (3)
(c) Concentration of exposure
Specific impairment allowance - - - -
Geographical concentrations of loans and advances to customers
Total 137,553 55,226 8,965 3,599
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
(b) Concentration of exposure
UK 874,125 733,286 56,970 47,792
The Bank has the following concentrations of gross loans and advances to banks: Europe 572,465 451,370 37,310 29,418
March 31, March 31, March 31, March 31, North America 489,185 359,244 31,883 23,414
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million* India 437,026 707,582 28,483 46,117
Total gross advances to Rest of the World 121,773 178,079 7,937 11,606
banks located in: Total 2,494,574 2,429,561 162,583 158,347
UK 50,064 - 3,263 -
Geographical concentration represents the country of risk exposure. Generally,
Europe - - - - the risk domicile of an exposure is identified as the country of residence of the
North America - - - - borrower provided that the cash flows of the borrower and/or the value of the
India 82,192 55,266 5,357 3,602 security adequately covers the loan exposure of the Bank.
Rest of the World 5,313 - 346 -
(d) Loans to customers placed as collateral against borrowings from Central banks
Total 137,569 55,266 8,966 3,602
March 31, March 31, March 31, March 31,
Geographical concentration represents the country of risk exposure. Generally, 2018 2017 2018 2017
the risk domicile of an exposure is identified as the country of residence of the USD 000s USD 000s ` in million* ` in million*
borrower provided that the cash flows of the borrower and/or the value of the Carrying amount of loans 35,741 39,533 2,329 2,577
security adequately covers the loan exposure of the Bank.
(c) Loans to banks placed as collateral against borrowings from Central banks 19 Potential credit risk on financial instruments
March 31, March 31, March 31, March 31, March 31, 2018 USD 000s
2018 2017 2018 2017 Impairment
USD 000s USD 000s ` in million* ` in million* Neither past Past allowances
Carrying amount of loans 35,064 - 2,285 - due nor due not & collective
impaired impaired Impaired provision Total

18 Loans and advances to customers Cash and cash 500,246 - - - 500,246

equivalents
(a) Residual Maturity Loans and
March 31, March 31, March 31, March 31, advances to banks 137,569 - - (16) 137,553
2018 2017 2018 2017 Loans and
USD 000s USD 000s ` in million* ` in million*
advances to
Repayable on demand or at customers 2,177,902 6,004 328,109 (146,364) 2,365,651
short notice 10,740 1,216 701 80 Investment
Other loans and advances securities 803,363 - 51,516 (49,984) 804,895
Remaining Maturity : Derivative financial
24,295 - - - 24,295
Over 5 years 551,629 403,405 35,952 26,292 instruments
5 years or less but over 1 year 1,074,345 1,035,862 70,020 67,512 Other assets*:
1 year or less but over 3 - Cheques in
72 - - - 72
months 245,295 391,506 15,986 25,516 clearing
3 months or less 612,565 597,572 39,924 38,947 - Deposits
6,812 - - - 6,812
Sub total 2,494,574 2,429,561 162,583 158,347 receivable
Collective provision (12,217) (10,993) (796) (716) - Unsettled
Specific impairment securities - - - - -
allowance (134,101) (86,436) (8,740) (5,634) Accrued income
Total 2,348,256 2,332,132 153,047 151,997 and other
receivables 30,847 - - - 30,847
Total financial
instruments 3,681,106 6,004 379,625 (196,364) 3,870,371

420 * INR figures are unaudited

notes
forming part of the financial statement Continued

March 31, 2018 ` in million* Loans and advances to customers (including finance lease)
Neither Impairment March 31, March 31, March 31, March 31,
past Past allowances 2018 2017 2018 2017
due nor due not & collective USD 000s USD 000s ` in million* ` in million*
impaired impaired Impaired provision Total Loans contractually overdue
Cash and cash as to principal or interest
equivalents 32,604 - - - 32,604 - Less than 60 days 16,374 3,787 1,067 247
Loans and - 61 to 90 days - - - -
advances to banks 8,966 - - (1) 8,965
- more than 90 days 251,490 275,502 16,391 17,956
Loans and
advances to Total 267,864 279,289 17,458 18,203
customers 141,944 391 21,385 (9,539) 154,181 Concentration of overdue
Investment securities 52,360 - 3,358 (3,258) 52,460 exposure
United Kingdom - 3,787 - 247
Derivative financial
instruments 1,583 - - - 1,583 Europe - 30,314 - 1,976
Other assets**: India 244,806 223,421 15,955 14,561
- Cheques in Rest of the World 23,058 21,767 1,503 1,419
clearing 5 - - - 5 Total 267,864 279,289 17,458 18,203
- Deposits Past due whether impaired
receivable 444 - - - 444 or not
- Unsettled Past due not impaired 6,004 3,787 391 247
securities - - - - - Past due impaired 261,860 275,502 17,067 17,956
Accrued income and Total 267,864 279,289 17,458 18,203
other receivables 2,010 - - - 2,010 Past due not impaired#
Total financial - Less than 60 days
239,916 391 24,743 (12,798) 252,252 6,004
3,787 391 247
instruments
- 61 to 90 days - -
- more than 90 days - -
March 31, 2017 USD 000s
Total 6,004 3,787 391 247
Impairment
Neither past Past allowances #Past due not impaired are stated at the total value of the exposure. This
due nor due not & collective excludes gross exposures with overdues which were paid subsequent to
impaired impaired Impaired provision Total
the yearend (FY2018 overdues USD 9.2 million (`* 600 million) and FY2017
Cash and cash overdues of USD 0.8 million (`* 52 million)).
333,702 - - - 333,702
equivalents
Loans and advances Forbearance
to banks 55,266 - - (40) 55,226
The outstanding exposures for restructured/forborne loans are provided below:
Loans and advances
to customers 2,113,728 3,787 312,046 (97,429) 2,332,132 March 31, March 31, March 31, March 31,
Investment securities 681,686 - 51,514 (49,894) 683,306 2018 2017 2018 2017
Derivative financial USD 000s USD 000s ` in million* ` in million*
25,709 - 41 - 25,750 Gross impaired loans
instruments 152,904 63,649 9,966 4,148
Less: Provisions (43,358) (33,963) (2,826) (2,213)
Other assets**:
Net impaired loans 109,546 29,686 7,140 1,935
- Cheques in
53 - - - 53 Gross non impaired loans 24,178 25,093 1,576 1,635
clearing
Past dues - - - -
- Deposits
7,288 - - - 7,288 Not past dues 24,178 25,093 1,576 1,635
receivable
- Unsettled 20 Impairment on loans and advances
securities 13,965 - - - 13,965 Net loan impairment charge to profit and loss account
Accrued income and
other receivables 19,460 - 222 - 19,682 March 31, March 31, March 31, March 31,
Total financial 2018 2017 2018 2017
instruments 3,250,857 3,787 363,823 (147,363) 3,471,104 USD 000s USD 000s ` in million* ` in million*
New charges (76,804) (65,981) (5,006) (4,301)
March 31, 2017 ` in million Release of allowance - 474 - 31
Impairment Write off /charge directly to
Neither past Past allowances profit and loss (1,906) (2,674) (124) (174)
due nor due not & collective
impaired impaired Impaired provision Total (78,710) (68,181) (5,130) (4,444)
Cash and cash Movement in impairment allowance on loans and advances
21,749 - - - 21,749
equivalents March 31, 2018 USD 000s March 31, 2017 USD 000s
Loans and advances Specific Collective Specific Collective
Total Total
to banks 3,602 - - (3) 3,599 Impairment Provision Impairment Provision
Loans and advances Opening
to customers 137,762 247 20,338 (6,350) 151,997 Balance 86,436 11,033 97,469 71,108 11,558 82,666
Investment securities 44,429 - 3,357 (3,252) 44,534 Charge to
Derivative financial profit and loss
1,675 - 3 - 1,678 account 75,558 1,246 76,804 66,506 (525) 65,981
instruments
Other assets**: Other provision
on interest
- Cheques in
3 - - - 3 income 99 - 99 - - -
clearing
- Deposits Amounts
476 - - - 476 written off (30,412) - (30,412) (50,532) - (50,532)
receivable
- Unsettled Recovery - - - (474) - (474)
securities 910 - - - 910 Others (incl. FX) 2,420 - 2,420 (172) - (172)
Accrued income and Closing
other receivables 1,268 - 14 - 1,282 Balance 134,101 12,279 146,380 86,436 11,033 97,469
Total financial
instruments 211,874 247 23,712 (9,605) 226,228
**excludes deferred tax assets, prepaid expenses and fixed assets

* INR figures are unaudited 421

 notes
forming part of the financial statement Continued

March 31, 2018 ` in million* March 31, 2017 ` in million* Valuation Hierarchy
Specific Collective Specific Collective The valuation hierarchy is set out below:
Total Total
Impairment Provision Impairment Provision Level 1: Investments valued using unadjusted quoted prices in active markets.
Opening
Balance Level 2: Investments valued using valuation techniques based on observable
5,634 719 6,353 4,634 753 5,387 market data for instruments where markets are considered less than active.
Charge to Instruments in this category are valued using:
profit and loss
account 4,925 81 5,006 4,335 (34) 4,301 (a) Quoted prices for similar assets, or identical assets in markets which are
Other provision considered to be less than active; or
on interest (b) Valuation techniques where all the inputs that have a significant effect on
income 6 - 6 - - -
the valuation are directly or indirectly based on observable market data.
Amounts
written off (1,982) - (1,982) (3,293) - (3,293) Level 3: Investments valued using valuation model based on significant non
Recovery - - - (31) - (31) market observable inputs.
Others (incl. FX) 157 - 157 (11) - (11) Investments held at fair value at March 31, 2018, by valuation method:
Closing
Balance 8,740 800 9,540 5,634 719 6,353 USD 000s
Level 1 Level 2 Level 3 Total
21 Investment securities Treasury Bills & Government 173,884 - - 173,884
Classification of Investment securities securities
March 31, March 31, March 31, March 31, Bonds 321,234 21,178 - 342,412
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million* Asset Backed Securities - 19,557 - 19,557
Analysed by class: Equity 1,533 1,115 4,474 7,122
Government Securities 192,094 74,127 12,520 4,831 Total 496,651 41,850 4,474 542,975
Other securities
- Bonds 586,122 585,631 38,201 38,169 ` in million*
- Asset Backed Securities 19,557 17,990 1,275 1,172 Level 1 Level 2 Level 3 Total
- Equity 7,122 5,558 464 362
Treasury Bills & Government 11,332 - - 11,332
Total other securities 612,801 609,179 39,940 39,703 securities
Total 804,895 683,306 52,460 44,534
Analysed by issuer: Bonds 20,939 1,380 - 22,319
Available for sale Asset Backed Securities - 1,275 - 1,275
Issued by public bodies: Equity 99 73 292 464
Government Issued 173,884 56,663 11,332 3,693 Total 32,370 2,728 292 35,390
Other Public sector
securities 181,939 216,721 11,858 14,125 Investments held at fair value at March 31, 2017, by valuation method:
Issued by other issuers 187,152 146,743 12,198 9,564 USD 000s
Held to Maturity
Government Issued 18,210 17,464 1,188 1,138 Level 1 Level 2 Level 3 Total
Issued by other issuers 243,710 245,715 15,884 16,014 Treasury Bills & Government 56,663 - - 56,663
Financial instruments at securities
fair value through profit Bonds 339,916 - - 339,916
and loss
Issued by other issuers - - - - Asset Backed Securities 17,990 - - 17,990
Total 804,895 683,306 52,460 44,534 Equity 1,622 828 3,108 5,558
Analysed by listing Total
status: 416,191 828 3,108 420,127
Available for sale
` in million*
Unlisted 123,798 10,376 8,070 676
Listed 419,177 409,751 27,320 26,705 Level 1 Level 2 Level 3 Total
Held to Maturity Treasury Bills & Government 3,693 - - 3,693
Listed 261,920 263,179 17,070 17,153 securities
Financial instruments at Bonds 22,154 - - 22,154
fair value through profit
and loss Asset Backed Securities 1,172 - - 1,172
Unlisted - - - - Equity 106 54 202 362
Total 804,895 683,306 52,460 44,534
Total 27,125 54 202 27,381
Analysed by maturity#:
Due within 1 year 213,514 82,185 13,917 5,356
Due 1 year and above 584,259 595,563 38,079 38,816 Investments placed as collateral against liabilities/borrowings
Total 797,773 677,748 51,996 44,172 Under Repurchase agreements the Bank has placed certain Bonds, ABSs
& FCCBs issued by financial institutions & corporates as collateral against
#does not include USD 7.1 million (`* 464 million) of investment in equity
liabilities/ borrowings (refer Note 29).
(FY2017: USD 5.6 million, `* 362 million)

Investments placed as collateral against borrowings from Central banks

March 31, March 31, March 31, March 31,

2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
Carrying value of investments 133,186 12,523 8,680 816
Impairment on investment securities
During the year the Bank made impairment provisions of USD 0.002 million on
the investments through the profit and loss in respect of equity investments
held as available for sale amounting to (Nil impairment provision in FY2017).

422 * INR figures are unaudited

notes
forming part of the financial statement Continued

22 Fixed Assets
Leasehold Tangible Intangible Total Leasehold Tangible Intangible Total
Improvements Fixed Assets Fixed Assets USD 000s Improvements Fixed Assets Fixed Assets ` in million*
USD 000s USD 000s USD 000s ` in million* ` in million* ` in million*
Cost:
At April 1, 2017 9,282 4,650 3,819 17,751 606 303 249 1,158
Additions 6 90 5 101 - 9 - 9
Disposal (327) - - (327) (21) (3) 0 (24)
At March 31, 2018 8,961 4,740 3,824 17,525 585 309 249 1,143
Accumulated depreciation:
At April 1, 2017 6,390 4,416 3,476 14,282 416 288 227 931
Charge for the year 554 84 144 782 37 5 9 51
Disposal (315) - - (315) (20) - - (20)
At March 31, 2018 6,629 4,500 3,620 14,749 433 293 236 962
Net book value:
At March 31, 2018 2,332 240 204 2,776 152 16 13 181
At April 1, 2017 2,892 234 343 3,469 190 15 22 227

23 Other Assets 25 Customer accounts

With agreed maturity dates or periods of notice, by remaining maturity:
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
March 31, March 31, March 31, March 31,
USD 000s USD 000s ` in million* ` in million*
2018 2017 2018 2017
Amounts in clearing 72 53 5 3 USD 000s USD 000s ` in million* ` in million*
Deposits receivable 6,812 7,288 444 476 More than 5 years 3,081 2,671 201 174
Deferred tax asset1 8,268 1,847 539 120 5 years or less but
Settlement balances2 0 13,965 0 910 over 1 year 225,303 170,225 14,684 11,094

Other receivables 3
13,728 4,173 895 272 1 year or less but over
3 months 319,013 435,468 20,792 28,383
Others4 1,500 2,000 97 130
3 months or less but
Total 30,380 29,326 1,980 1,911 not repayable on
1
Refer note 11 demand 74,917 184,740 4,883 12,040
2
Comprising of securities pending settlement 622,314 793,104 40,560 51,691
3
Includes USD 8.0 million towards cash collateral towards TLTRO borrowings.
4
Assets acquired in settlement of loan claims, held as inventory at lower of cost Repayable on demand 1,126,506 855,484 73,419 55,756
or net realizable value. Total 1,748,820 1,648,588 113,979 107,447

24 Deposits by Banks 26 Bonds and medium term notes

With agreed maturity dates or periods of notice, by remaining maturity:
March 31, March 31, March 31, March 31,
March 31, March 31, March 31, March 31, 2018 2017 2018 2017
2018 2017 2018 2017 Bonds issued USD 000s USD 000s ` in million* ` in million*
Banks USD 000s USD 000s ` in million* ` in million* Residual Maturity
5 years or less but 5 year or less but over 160,000 170,000 10,428 11,080
over 1 year 294,579 191,571 19,199 12,485 1 year
1 year or less but over
1 year or less but over 3 months 130,000 174,364 8,473 11,364
3 months 349,860 339,862 22,802 22,150 3 months or less 70,000 - 4,562 -
3 months or less but 360,000 344,364 23,463 22,444
not repayable on Less: Bond issue (219) (167) (14) (11)
demand 271,999 70,992 17,728 4,627 expenses
Total bonds and
916,438 602,425 59,729 39,262 medium term notes 359,781 344,197 23,449 22,433

Details of various bonds and notes under the medium term notes programmes issued by the Bank at March 31, 2018 are as follows:
Nature of Issue: Senior unsecured bonds
Date of Issue Interest frequency Interest Rate Maturity USD 000s ` in million*
27-Apr-15 Quarterly 2.99% Bullet repayment in May 18 10,000 652
08-Jun-15 Quarterly 3.27% Bullet repayment in Jun 18 10,000 652
28-Sep-15 Quarterly 3.47% Bullet repayment in Sep 18 5,000 326
28-Sep-15 Quarterly 3.47% Bullet repayment in Sep 18 5,000 326
18-Nov-15 Quarterly 2.93% Bullet repayment in Nov 18 5,000 326
16-Sep-16 Quarterly 3.03% Bullet repayment in Sep 18 20,000 1,304
13-Feb-17 Quarterly 2.83% Bullet repayment in Feb 19 40,000 2,608
15-Mar-17 Quarterly 3.30% Bullet repayment in Mar 20 50,000 3,259
23-Mar-17 Quarterly 3.20% Bullet repayment in Mar 19 25,000 1,629
22-Jun-17 Quarterly 2.94% Bullet repayment in Jun 18 50,000 3,259
18-Jul-17 Quarterly 2.49% Bullet repayment in Jul 19 10,000 652
25-Jul-17 Quarterly 2.51% Bullet repayment in Jul 19 50,000 3,258
21-Aug-17 Quarterly 2.69% Bullet repayment in Feb 19 30,000 1,954
29-Aug-17 Quarterly 2.92% Bullet repayment in Sep 19 50,000 3,258
Total 360,000 23,463
Less: Bond issue expenses (219) (14)
Total bonds and medium term notes 359,781 23,449

* INR figures are unaudited 423

 notes
forming part of the financial statement Continued
27 Subordinated debt liabilities With agreed maturity dates or periods of notice, by remaining maturity:
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2018 2017 2018 2017 2018 2017 2018 2017
Sub-ordinated debt #
USD 000s USD 000s ` in million* ` in million* USD 000s USD 000s ` in million* ` in million*
Residual Maturity 5 years or less but 62,942 90,018 4,102 5,867
Over 5 years - - - - over 1 year
5 year or less but over 1 year or less but over 88,044 - 5,739 -
1 year# 150,000 150,000 9,776 9,776 3 months
1 year or less but over 3 months or less 39,766 - 2,592
3 months# - - - -
Total 150,986 129,784 9,841 8,459
3 months or less# - 26,349 - 1,717
150,000 176,349 9,776 11,493 30 Called up share capital
Less: Bond issue At March 31, 2018 the Issued share capital of ICICI Bank UK PLC was:
expenses (120) (165) (8) (11)
March 31, March 31, March 31, March 31,
Less: Adjustments to 2018 2017 2018 2017
carrying amount for USD 000s USD 000s ` in million* ` in million*
change in the value
420 million ordinary 420,000 420,000 27,374 27,374
of hedge which is
shares of USD 1 each
ineffective (35) (1)
50,002 ordinary 95 95 6 6
149,880 176,149 9,768 11,481
shares of £1 each
#Listed with Singapore stock exchange.
Total Share Capital 420,095 420,095 27,380 27,380
Details of the Subordinated debt liabilities issued by the Bank at March 31, 2018
are as follows: There is no movement in number of shares during the year. All the shares are
allotted and fully paid and the holders of ordinary shares are entitled to receive
Date of Nature of Issue Interest Interest Maturity USD 000s ` in dividends as declared from time to time and are entitled to one vote per share at
Issue Rate frequency million* meetings of the Bank. There are no restrictions on the distribution of dividends
and the repayment of capital.
23-Nov-10 Senior 7.00% Semi- Bullet 150,000 9,776
unsecured annual payment in
medium term November 31 Employee benefits
notes 2020 During the year, the Bank made a contribution of USD 475,149 (`* 30,697,836)
Total 150,000 9,776 (2017: USD 456,597; `* 29,758,709) to the pension scheme. Out of this amount,
USD 42,597 (`* 2,776,277) was accrued at the year end (2017: USD 36,830; `*
Less: Bond issue expenses (120) -8 2,400,393).
149,880 9,768
32 Contingent liabilities and commitments (Off Balance Sheet)
For all the subordinated notes, the notes and coupons are direct, unsecured As a part of banking activities, the Bank issued bank guarantees to support
and subordinated obligations of the Bank, and rank pari passu without any business requirements of customers. Guarantees represent irrevocable
preference among themselves. assurances that the Bank will pay in the event a customer fails to fulfil its
financial or performance obligations. The credit risks associated with these
28 Other liabilities guarantees are similar to those relating to other types of unfunded facilities.
March 31, March 31, March 31, March 31, The Bank enters into guarantee arrangements after conducting appropriate due
2018 2017 2018 2017 diligence on the customers. Upon default by a customer under the terms of the
USD 000s USD 000s ` in million* ` in million* guarantee, the beneficiary may exercise its rights under the guarantees, and the
Amounts in clearing 1,613 4,833 105 315 Bank is obligated to honour payments to the beneficiaries.
Other creditors# 11,453 5,745 747 374 The Bank extends financing to its customers by loan facilities, credit lines
Total 13,066 10,578 852 689 and other commitments to lend. Depending upon customer’s requirement
#Includes repo margins received USD 3.9 million (2017: USD 0.4 million) and subject to its ability to maintain specific credit standards, the unexpired
undrawn commitment can be withdrawn by customers. The interest rate on
29 Repurchase agreements a significant portion of these commitments is dependent on the lending rates
prevailing on the date of the loan disbursement. Further, the commitments
March 31, 2018 March 31, 2017
have fixed expiration dates and are contingent upon the customer’s ability to
USD 000s USD 000s
maintain specific credit standards.
Carrying Carrying Carrying Carrying
amount of amount of amount of amount of
liabilities collateral liabilities collateral (a) Guarantees and other commitments:
assets assets
Repurchase agreements 150,986 178,878 129,784 165,042 March 31, March 31, March 31, March 31,
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
March 31, 2018 March 31, 2017 Guarantees 339,759 277,280 22,144 18,072
` in million* ` in million* Other commitments
Carrying Carrying Carrying Carrying Undrawn formal
amount of amount of amount of amount of standby facilities,
liabilities collateral liabilities collateral credit lines and other
assets assets commitments to lend
Repurchase agreements 9,841 11,658 8,459 10,757 maturing in:
The repurchase transactions enable the Bank to raise funds using its portfolio Less than one year 103 2,781 7 181
of government bonds or corporate/financial institution bonds and Asset Backed More than one year - - - -
Securities (ABS) as collateral. These bonds and ABS are issued by corporates &
financial institutions with carrying value of USD 179 million (`* 11,658 million) Total guarantees and
(2017: USD 165 million; `* 10,757 million). These have been pledged as commitments 339,862 280,061 22,151 18,253
collateral under repurchase agreements entered by the Bank. These form part
of the AFS book & Loans and Receivable book (refer Note 21 and Note 40). As (b) Significant concentrations of contingent liabilities and commitments
per the contract, the Bank agrees to repay the principal along with the interest at
maturity and receive the collateral from the counter party.  Approximately 60% (2017: 67%) of the total contingent liabilities and
commitments relate to counterparties in India and the majority of the
remaining balance relates to Europe.

424 * INR figures are unaudited

notes
forming part of the financial statement Continued
Continued
(c) Foreign exchange contracts 35 Categories and classes of Financial Instruments
In addition to the commitments disclosed above, there are outstanding
foreign exchange contracts of USD 953 million (`* 62,112 million) (2017: The carrying amounts of the financial assets and liabilities include
USD 890 million; `* 58,006 million). March 31, March 31, March 31, March 31,
2018 2017 2018 2017
33 Litigation USD 000s USD 000s ` in million* ` in million*
 In the ordinary course of business, the Bank pursues litigation in order to Financial assets 24,295 25,750 1,583 1,678
recover any overdue exposures. There are no material litigations against the measured at fair value
Bank. through profit or loss
Financial assets under 542,975 420,127 35,389 27,381
34 Operating lease commitments
Available for Sale
As at March 31, 2018, the Bank has the following non cancellable operating category
lease commitments:
Financial assets under 3,041,181 2,762,048 198,209 180,016
Loans and receivable
March 31, March 31, March 31, March 31, category
2018 2017 2018 2017 Financial assets under 261,920 263,179 17,071 17,153
USD 000s USD 000s ` in million* ` in million* Held to maturity
Land and Buildings category
Within 1 year 2,044 1,743 133 114 Total financial assets 3,870,371 3,471,104 252,252 226,228
Between 1 and 5 years 6,905 5,857 450 382 Liabilities measured
at fair value through
More than 5 years 2,100 895 136 58
profit or loss 17,572 15,719 1,145 1,025
11,049 8,495 719 554 Liabilities measured at 3,360,016 2,930,817 218,990 191,016
The Bank had sub-let a portion of its premises in corporate office, the sub-lease amortised cost
agreement provides for fixed lease rentals for the entire period. The lease will
expire between 1 and 5 years. Following is the future minimum lease payments
receivable under non cancellable operating lease:
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
USD 000s USD 000s ` in million* ` in million*
Land and Buildings
Within 1 year 335 299 22 19
Between 1 and 5 years 995 949 65 62
More than 5 years 0 131 0 9
1,330 1,379 87 90

Total financial 3,377,588 2,946,536 220,135 192,041

liabilities

Assets: USD 000s

As at March 31, 2018 Fair value Available Loans & Held to
though P&L for Sale Receivables maturity Total
Cash and cash equivalents - - 500,246 - 500,246
Loans and advances to banks - - 137,553 - 137,553
Loans and advances to customers - - 2,365,651 - 2,365,651
Investment Securities - 542,975 - 261,920 804,895
Derivative financial instruments 24,295 -  -  -  24,295
Other assets# - 20,612 - 20,612
Accrued income - - 17,119 - 17,119
Total financial assets 24,295 542,975 3,041,181 261,920 3,870,371

As at March 31, 2018 ` in million*

Cash and cash equivalents - - 32,604 - 32,604
Loans and advances to banks - - 8,965 - 8,965
Loans and advances to customers - - 154,181 - 154,181
Investment Securities - 35,389 - 17,071 52,460
Derivative financial instruments 1,583 - - -  1,583
Other assets# - - 1,344 - 1,344
Accrued income - - 1,115 - 1,115
Total financial assets 1,583 35,389 198,209 17,071 252,252

# excludes deferred tax assets, prepaid expenses, fixed assets and assets acquired in settlement of loan claims, held as inventory at lower of cost or net realizable value

* INR figures are unaudited 425

 notes
forming part of the financial statement Continued

As at March 31, 2017 USD 000s

Cash and cash equivalents - - 333,702 - 333,702
Loans and advances to banks - - 55,226 - 55,226
Loans and advances to customers - - 2,332,132 - 2,332,132
Investment in Securities - 420,127 - 263,179 683,306
Derivative financial instruments 25,750 -  -  -  25,750
Other assets# - 25,479 - 25,479
Accrued income - - 15,509 - 15,509
Total financial assets 25,750 420,127 2,762,048 263,179 3,471,104

As at March 31, 2017 ` in million*

Cash and cash equivalents - - 21,749 - 21,749
Loans and advances to banks - - 3,599 - 3,599
Loans and advances to customers - - 151,997 - 151,997
Investment in Securities - 27,381 - 17,153 44,534
Derivative financial instruments 1,678 1,678
Other assets# - - 1,661 - 1,661
Accrued income - - 1,010 - 1,010
Total financial assets 1,678 27,381 180,016 17,153 226,228

# excludes deferred tax assets, prepaid expenses, fixed assets and assets acquired in settlement of loan claims, held as inventory at lower of cost or net realizable value

Liabilities:
USD 000s
As at March 31, 2018 Fair value though P&L Non trading liability Total
Deposits by banks - 916,438 916,438
Customer accounts - 1,748,820 1,748,820
Bonds and Medium term notes - 359,781 359,781
Subordinated debts -  149,880 149,880
Derivative financial instruments 17,572 -  17,572
Other liabilities - 13,066 13,066
Accruals and deferred income - 21,045 21,045
Repurchase agreements - 150,986 150,986
Total financial liabilities 17,572 3,360,016 3,377,588

As at March 31, 2018 ` in million*

Deposits by banks - 59,729 59,729
Customer accounts - 113,979 113,979
Bonds and Medium term notes - 23,449 23,449
Subordinated debts - 9,768 9,768
Derivative financial instruments 1,145 -  1,145
Other liabilities - 852 852
Accruals and deferred income - 1,372 1,372
Repurchase agreements - 9,841 9,841
Total financial liabilities 1,145 218,990 220,135

As at March 31, 2017 USD 000s

Deposits by banks - 602,425 602,425
Customer accounts - 1,648,588 1,648,588
Bonds and Medium term notes - 344,197 344,197
Subordinated debts -  176,149 176,149
Derivative financial instruments 15,719 -  15,719
Other liabilities -  10,578 10,578
Accruals and deferred income - 19,096 19,096
Repurchase agreements - 129,784 129,784
Total financial liabilities 15,719 2,930,817 2,946,536

As at March 31, 2017 ` in million

Deposits by banks - 39,262 39,262
Customer accounts - 107,447 107,447
Bonds and Medium term notes - 22,433 22,433
Subordinated debts - 11,481 11,481
Derivative financial instruments 1,025 - 1,025
Other liabilities - 689 689
Accruals and deferred income - 1,245 1,245
Repurchase agreements - 8,459 8,459
Total financial liabilities 1,025 191,016 192,041
Refer to Note 3 for descriptions of categories of assets and liabilities .

426 * INR figures are unaudited

notes
forming part of the financial statement Continued

36 Capital Management Credit Committee (BCC), and the Board Conduct Risk Committee (BCRC), and
 The Bank’s regulatory capital requirements are set and monitored by the follows ICICI Group’s overall risk management framework. The Board has
PRA. The Bank implemented the CRD IV (Basel III) framework for calculating delegated responsibility for the day-to-day management of the Bank to the
minimum capital requirements, with effect from January 1, 2014. The Bank’s Managing Director and Chief Executive Officer. In this role, the Managing Director
regulatory capital is categorised into two tiers: and Chief Executive Officer is supported by the Management Committee,
which he chairs. The Management Committee is supported by various other
• T
 ier 1 capital, which includes ordinary share capital, retained earnings and
committees, which include the Executive Credit and Risk Committee (ECRC),
regulatory adjustments to Tier 1 capital.
the Asset Liability Management Committee (ALCO), the Compliance Conduct
• T
 ier 2 capital, which includes qualifying subordinated liabilities, collective and Operational Risk Committee (CORMAC), the Product and Process Approval
provision and regulatory adjustments to Tier 2 capital. Committee (PAC) and the Information Security Committee (ISC)
Banking operations are categorized as either trading or banking book, and risk- As a financial institution, the Bank is exposed to various types of risks. The
weighted assets are determined according to specified requirements that seek objective of the risk management framework of the Bank is to ensure that the
to reflect the varying levels of risk attached to assets and off balance sheet key risks facing the Bank are identified, understood, measured and monitored;
exposures. and that the policies and procedures established to address these risks are
The Bank uses regulatory capital ratios in order to monitor its capital base and strictly adhered to.
these capital ratios remain the international standards for measuring capital The key principles underlying the risk management framework of the Bank are
adequacy. The PRA’s approach to such measurement under CRD IV is primarily as follows:
based on monitoring the Capital Resource Requirement to available capital
1. The Board of Directors has oversight over the risks assumed by the Bank.
resources. The PRA also sets Individual Capital Guidance (ICG) for the Bank
Specific Board committees have been constituted to facilitate focused
that sets capital requirements in excess of the minimum Capital Resource
oversight of various risks.
Requirement. A key input to the ICG setting process is the Bank’s Internal Capital
Adequacy Assessment Process (ICAAP). Under the current PRA guidelines, the 2. Policies approved from time to time by the Board of Directors or Committees
total capital adequacy requirement for the Bank equals the aggregate of the of the Board form the governing framework for each type of risk. The
Pillar 1 capital requirement, the Pillar 2A capital requirement (derived from the business activities are undertaken within this policy framework.
existing Internal Capital Guidance), and applicable macro-prudential buffers Independent groups and sub-groups have been constituted across the
3. 
such as the Countercyclical Capital Buffer (CCyB), the Capital Conservation Bank to facilitate independent evaluation, monitoring and reporting of risks.
Buffer (CCoB) and the ‘PRA buffer’. These groups function independently of the business groups/sub-groups.
During June 2017, the Financial Policy Committee (FPC) raised UK countercyclical As part of implementation of an Enterprise Risk Management framework,
buffer rate from 0% to 0.5%, to apply from June 2018 and during November the Bank has developed a risk appetite framework based on its strategy, an
2017, FPC further increased it to 1% with binding effect from November 2018. examination of best practices and the risk appetite statement of the Parent. The
The Bank’s policy is to maintain an adequate capital base so as to maintain risk appetite statement has been further drilled down into portfolio-level limits.
investor, creditor and market confidence and to sustain future development of The Bank has a risk register which documents the material risks faced by the
the business. The impact of the level of capital on shareholders’ return is also Bank and categorises them as High, Medium or Low risk based on likelihood
recognized and the Bank recognizes the need to maintain a balance between the and severity of impact. The key material risks to which the Bank is exposed
higher returns that might be possible with greater gearing and the advantages include credit risk (including concentration risk and political risk), market risk
and security afforded by a sound capital position. The Bank has complied with (including interest rate and credit spread risks), liquidity risk and operational risk
all regulatory capital requirements throughout the year. (including compliance and legal risk and conduct risks).
The Bank’s regulatory capital resources to be reported under CRD IV are as The approach adopted by management to manage the key risks facing the Bank
follows: is outlined below.
March 31, March 31, March 31, March 31, Credit Risk
2018 2017 2018 2017
USD million USD million ` in million* ` in million* Credit risk is the risk that losses may arise as a result of the Bank’s borrowers or
Total Capital 578.6 616.1 37,710 40,154 market counterparties failing to meet obligations under a contract. All credit risk
- Tier I 488.8 521.3 31,864 33,977 related aspects are governed by the Credit Risk Management Policy (CRMP),
- Tier II 89.8 94.8 5,853 6,179 which is approved and reviewed annually by the Board Credit Committee. The
CRMP describes the principles which underpin and drive the Bank’s approach
to credit risk management together with the systems and processes through
37 Country by country reporting which they are implemented and administered.
 The Capital Requirements Directive 4 (“CRD IV”) requirements stipulate
The Bank ensures that there is independent challenge of credit proposals by
reporting on a consolidated basis, by country where the reporting institution
adopting a two stage process whereby a commercial officer assesses and
has an establishment, the name, nature of activities, geographical location,
proposes a transaction or limit and this proposal is then reviewed independently
number of employees, turnover, pre-tax profit/loss, corporation taxes paid and
and assessed by a credit officer within the risk team. The CRMP lays down
any public subsidies received.
a structured credit approval process, which includes the procedure for
The Bank has two branches in the EU which are outside UK, in Antwerp independent credit risk assessment and the assignment of an internal risk rating
(Belgium) and Eschborn (Germany). The details of the business activities are (IRR) to the borrower. The risk rating is a critical input in the credit approval
provided in the Business Review section of the Strategic Report. Details as on process and is used as an input in arriving at the risk premium for the proposal.
March 31, 2018 are provided below:
The Bank uses credit rating software through which it assesses a variety of risks
relating to the borrower and the relevant industry while assigning an internal
Number of UK Belgium Germany
employees rating. Borrower risk is evaluated by considering, inter alia:
160 3 15
• The financial position of the borrower, by analysing the quality of its financial
USD ` USD ` USD ` statements, its past financial performance, its financial flexibility in terms of
million million* million million* million million* ability to raise capital and its cash flow adequacy;
Turnover1,2 66.8 4,355 5.9 384 10.5 685 • The borrower’s relative market position and operating efficiency; and
Pre-tax profit (10.8) (702) (24.4) (1,592) 4.8 313 • The quality of management by analysing its track record, payment record
Corporation 0.3 16 - - 2.9 188 and financial conservatism.
tax paid Industry risk is evaluated by considering, inter alia:
1
Income before operating expenses and provisions • Certain industry characteristics, such as the importance of the industry
2
Includes P&L on sale of financial assets to the economy, its growth outlook, cyclicality and government policies
relating to the industry;
There were no public subsidies received during the year. It may be noted that
• The competitiveness of the industry; and
the Corporation tax paid are the cash taxes paid. Refer Note 11 for information
on the current year taxation (which includes taxes accrued not yet paid). • Certain industry financials, including return on capital employed, operating
margins, and earnings stability.
38 Risk Management Framework After conducting an analysis of a specific borrower’s risk, the Bank assigns
ICICI Bank UK PLC has adopted the governance framework in line with the an internal risk rating to the borrower. The Bank has a rating scale ranging
corporate governance practices adopted by other UK financial institutions. from ‘AAA’ to ‘D’ (AAA signifying the highest level of credit worthiness and D
The Board is assisted by its sub-committees, the Audit Committee, the Board signifying default). AAA to BBB- are considered as ‘Investment Grade’ while BB
Governance Committee (BGC), the Board Risk Committee (BRC), the Board and below are considered as ‘Non-Investment Grade’.

* INR figures are unaudited 427

 notes
forming part of the financial statement Continued
Credit approval Credit quality of loan portfolio
The delegation structure for approval of credit limits is approved by the Board The definition of internal risk rating for the loans and advances are given below:
Credit Committee. Credit proposals are approved by the Executive Credit and AAA to AA- : Highest safety/High Safety
Risk Committee (ECRC) or the Board Credit Committee (BCC) based on, inter
alia, the amount and internal risk rating of the facility. All credit proposals put up A+ to A- : Adequate safety
to the BCC are passed through the ECRC. BBB+ to BBB- : Moderate safety
The Credit Risk team is also responsible for the following with respect to BB and below : Inadequate safety/High risk
managing the Bank’s credit risk:
The Bank’s internal risk rating scale is a measure of relative credit worthiness
• D
 eveloping credit policies in consultation with the Corporate Banking Group and does not map exactly with that of external rating agencies.
and Retail Banking Group which cover collateral management, the credit
The exposure detailed below for loans and advances to Banks and Customers
rating framework, provisioning, etc.
are gross of collective and specific impairment.
• E
 stablishing the delegation of sanctioning powers available to individuals,
singly or jointly, and the credit committees which are documented in the Loans and advances to banks
Credit Approval Authorisation Manual. Internal risk rating of loans and advances to banks
• L
 imiting and monitoring concentrations of exposure to counterparties,
March 31, March 31, March 31, March 31,
geographies, industrial sectors, internal rating categories, etc.
2018 2017 2018 2017
• P
 erforming periodic credit stress tests on the Bank’s portfolio and Rating USD 000s USD 000s ` in million* ` in million*
communicating the results to the BCC. AAA to AA- 79,450 25,292 5,178 1,648
The credit middle office function is responsible for credit administration A+ to A- 56,973 29,974 3,713 1,954
which includes monitoring compliance with the terms and conditions prior to
disbursement. It also reviews the completeness of documentation and creation BBB+ to BBB- 1,146 - 75 -
of security. BB and below - - - -
Total 137,569 55,266 8,966 3,602
Concentration risk
Concentration risk arises from significant exposures to groups of counterparties Loans and advances to customers
where likelihood of default is driven by common underlying factors, e.g. sector, The details of the rating distribution have been provided in the following three
economy, geographical location, instrument type. The key parameters of risk categories:
concentrations measured in the Bank include sectoral, country, rating category
based, product specific exposures, counterparty and large exposures. To (a) Internal risk rating of loans and advances to customers
manage these risks, limits have been stipulated in the risk appetite framework.
These are monitored and reported to BRC at quarterly intervals. March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Rating USD 000s USD 000s ` in million* ` in million*
Credit Monitoring
Credit quality is monitored on an ongoing basis but can also be triggered by AAA to AA- 65,263 202,772 4,254 13,216
any material credit event coming to the Bank’s notice through either primary or A+ to A-# 1,169,585 882,411 76,227 57,510
secondary sources. The Bank has established a credit forum, which is comprised BBB+ to BBB-## 843,179 920,946 54,955 60,024
of Heads of Businesses and the Head of Risk. The credit forum focuses on
management & monitoring of impaired and watchlist assets/investments and BB and below 399,543 384,684 26,040 25,072
also monitors developments in the Bank’s portfolio through the Early Warning Total 2,477,570 2,390,813 161,476 155,822
Indicators (EWI) framework to identify potential vulnerabilities. It is the Bank’s
policy to review borrower accounts at least on an annual basis or at shorter # Includes USD 317.7 million (`* 20,706 million) of loans classified as “Strong”
interval(s) if recommended by the credit officer or the relevant sanctioning (2017: USD 232.3 million : `* 15,140 million); the classification is based on the
committee. A risk based asset review framework has been put in place wherein supervisory slotting criteria under the Basel framework.
the frequency of asset review would be higher for cases with higher exposure ## Includes USD 42.4 million (`* 2,763 million) of loans classified as “Good”
and/or lower credit rating. The Bank has established a list of assets under watch (2017: USD 15.9 million: `* 1,036 million); the classification is based on the
as an additional tool for monitoring exposures which show or are expected to supervisory slotting criteria under the Basel framework.
show signs of weakness. The assets under watch are reviewed on a quarterly
basis by the BCC, in addition to review and monitoring by the credit forum. b) Investments held as loans and receivables which are internally rated:
The Bank documents the ‘lessons learned’ from its experiences of exposures
against which specific provisions have been booked. These are presented to the March 31, March 31, March 31, March 31,
2018 2017 2018 2017
BCC and circulated to the commercial officers. Rating USD 000s USD 000s ` in million* ` in million*
Credit risk is also managed at the portfolio level by monitoring and reporting AAA to AA- - - - -
risk dashboards to the BCC at specified intervals. The credit risk dashboard is
constructed using key risk indicators for underlying portfolio rating, counterparty A+ to A- - - - -
concentration, geographical concentration, stressed assets, breaches in risk BBB+ to BBB- - - - -
appetite, sectoral concentration, recovery risk and documentation risk. BB and below 5,020 5,020 327 327
The segregation of responsibilities and oversight by groups external to the Total 5,020 5,020 327 327
business groups ensure adequate checks and balances.

An analysis of the Bank’s investment portfolio based on credit ratings (c) Investments held as loans and receivables which are externally rated:
provided by external rating agencies is as follows:
March 31, March 31, March 31, March 31,
March 31, March 31, March 31, March 31, 2018 2017 2018 2017
2018 2017 2018 2017 USD 000s USD 000s ` in million* ` in million*
USD 000s USD 000s ` in million* ` in million* AAA to AA- - - - -
AAA 81,675 66,909 5,324 4,361 A+ to A- 6,382 5,425 415 353
AA+ 12,834 - 836 - BBB+ to BBB- 23,043 28,303 1,502 1,845
AA 124,915 11,223 8,142 731 BB and below - - - -
AA- 4,953 2,201 323 143 Total 29,425 33,728 1,917 2,198
A+ 7,223 11,783 471 768
The Bank has adopted the standardised approach to Credit Risk Management
A and A- - - - -
under the Basel II framework.
BBB- 517,593 483,774 33,734 31,530
BB+ and below 48,580 101,857 3,166 6,639
Unrated 7,122 5,559 464 362
Total 804,895 683,306 52,460 44,534

428 * INR figures are unaudited

notes
forming part of the financial statement Continued

Industry exposure Value of collateral held against loans and advances to banks as at March 31,
The following is an analysis of loans and advances to customers by industry: 2018 is USD 35.0 million (2017:Nil).

March 31, March 31, March 31, March 31, The collateral valuations in the table above are based on the valuation available
2018 2017 2018 2017 from the latest available audited financial statements of the organisation,
USD 000s USD 000s ` in million* ` in million* valuation reports for tangible assets wherever applicable, and reports from
security trustee/market value of listed shares for loans against the shares. The
Industrials 340,171 264,888 22,171 17,264
valuations exclude any charges which might be incurred for selling the collateral.
Consumer 459,782 223,320 29,965 14,555
Discretionary The maximum amount of on balance sheet credit risk, without taking account
of any collateral or netting arrangements, as at March 31, 2018 is approximately
Consumer Staples 240,305 207,680 15,662 13,536 USD 3.9 billion (`* 253 billion) (2017: USD 3.5 billion; `* 227 billion). The
Energy 85,005 158,868 5,540 10,354 maximum amount of off balance sheet credit risk on guarantees and letters
Financials 75,812 225,280 4,941 14,683 of credit is approximately USD 340 million (`* 22,151 million) (2017: USD
280 million; `* 18,253 million). Potential credit risk on financial instruments is
Gems and Jewellery 91,631 152,147 5,972 9,916 detailed in Note 19.
Healthcare 89,617 81,922 5,841 5,339 The collateral value in the above table excludes the value of such collateral
Information 188,434 136,243 12,281 8,880 which the Bank may accept to manage its risks more effectively such as a
Technology second charge on assets, other liens and corporate guarantees and related
Materials 413,574 518,696 26,955 33,806 support undertakings from borrower group entities. The Bank has applied
appropriate haircuts when calculating the collateral value detailed above.
Real Estate# 481,221 359,411 31,364 23,425
Telecom Services 40,823 56,450 2,661 3,679 Market Risk
Utilities 5,020 15,705 327 1,024 Market risk is the possibility of loss arising from changes in the value of a
financial instrument as a result of changes in market variables such as interest
Others 620 451 40 29 rates, exchange rates, credit spreads and other asset prices. The Bank’s key
Retail loans## - 28,500 - 1,857 policies for managing market risk as approved by the Board Risk Committee
Total 2,512,015 2,429,561 163,720 158,347 (BRC) are:
• T
 reasury policy manual and mandate (TPMM) which also includes the
#Includes ABS/MBS portfolio held as loans and receivables which have been
trading book policy statement (TBPS)
classified here for both FY2017 and FY2018
## Includes Retail loans backed by SBLC • Valuation, model validation policy and independent price verification policy
These policies are designed to ensure that transactions in securities, foreign
Collateral Management
exchange and derivatives are conducted in accordance with sound and
The Bank has a policy on collateral management and credit risk mitigation which acceptable business practices as well as regulatory guidelines and laws
provides guidance for identifying eligible collateral as per the relevant articles of governing such transactions. The policies are reviewed periodically to take
the Capital Requirements Regulation (CRR). into account changed business requirements, the economic environment
Apart from obtaining eligible collateral for capital relief, the Bank endeavours to and revised policy guidelines.
reduce or mitigate, to the extent possible, the credit risk on credit facilities by
The key market risks to which the Bank is exposed relate to:
way of securing the facilities with appropriate collateral. The Bank determines
the appropriate collateral for each facility based on the type of product, the • Interest rate risk – Interest rate risk is defined as the risk of loss which
counterparty and the appropriateness of the collateral typically offered in the the Bank will incur as a result of an increase or decrease in interest rates.
jurisdiction of the borrower. Interest income and expense from interest sensitive assets and liabilities are
The security accepted by the Bank includes cash deposits, pledge/contractual impacted by changes in interest rates. The overall value of the investment
comfort over equity shares (both listed and unlisted), charges over fixed portfolio, the underlying value of the Bank’s other assets, its liabilities, and
assets (including plant and machinery and land and building) for term loans, off balance sheet (OBS) instruments are also impacted due to changes in
charges over current assets for working capital finance, charges on specific interest rates because the present value of future cash flows changes when
receivables with escrow arrangements, mortgages on residential/commercial interest rates change.
property, assignment of underlying project contracts for project finance loans.
The Bank also accepts corporate guarantees and related support undertakings Interest rate risk on the balance sheet is measured by the use of re-pricing
from borrower group entities for mitigating credit risk. The Bank has a collateral gap reports and estimating the sensitivity of the Bank’s net interest income
management policy which details the types of collaterals, frequency of valuation (defined as Earnings at Risk) to changes in interest rates. The sensitivity is
and valuation adjustments. The Bank also has a collateral valuation policy for calculated for various interest rate scenarios across different currencies that
cases assessed for specific provisions. The Bank applies Basel II guidelines the Bank’s balance sheet is exposed to including a standard scenario of a
on the collateral available with the Bank for its internally rated portfolio to
200 basis points adverse change in the level of interest rates. The various
determine the Loss Given Default (LGD) and haircuts applicable against each
collateral for computing the collective provisioning requirements. limits set for interest rate risk are monitored and the utilisations reported to
the ALCO and BRC on a periodic basis.
The Bank’s risk appetite framework has prescribed a limit on the quantum of
unsecured exposures. The Bank uses Duration of Equity (DoE) as an all-encompassing measure,
The CRMP provides guidance on identifying and defining secured facilities and
which takes into consideration the duration and value of both assets and
valuing the underlying security. The Bank monitors and reports the proportion liabilities. DoE is a measure of interest rate sensitivity, which indicates how
of unsecured exposures in the loan portfolio to the ECRC on a monthly basis much the market value of equity, would change if interest rates change by
and to the BCC on a quarterly basis. 1%. Currently a limit band of -2.0 to +2.0 has been prescribed for the overall
As per the policy, the basis of valuation depends on the type of security. The net DoE of the Bank.
CRMP details the general basis of valuation of various collateral and the expected 
Further, to manage the interest rate risk in the investment portfolio and
frequency of valuation. Management may apply haircuts (in the range of 10%-20%) ineffective derivatives, the bank uses various risk metrics such as value-at-risk
to the valuations if required (for example, when the valuation available is not recent (VaR), price value of basis point (PV01) and credit spread per basis point (CS01).
and may not reliably reflect the recoverable value of the security).
• F
 orex risk – This risk arises due to positions in non-dollar denominated
The table below provides the value of collateral/collaterals held by the Bank: currencies, which in turn arise from assets and liabilities in those currencies.
Foreign exchange risk is managed within the Treasury function in accordance
with approved position limits. The Net overnight open position (NOOP) of
March 31, March 31, March 31, March 31, the Bank as at March 31, 2018 was USD 3.7 million (`* 241 million) (2017:
Loans and advances 2018 2017 2018 2017
to customers USD 000s USD 000s ` in million* ` in million* USD 1.4 million; `* 91 million). Further, to manage the forex risk, the Bank
uses value-at-risk measure.
Collateral value 669,577 695,646 43,640 45,339
• E
 quity Risk – Equity price risk arises due to the volatility of price movements
Gross loans and
advances 2,512,015 2,429,561 163,720 158,347 on the Bank’s investment in equity shares and convertibles. Threshold
triggers are defined for decline in the values of equity investments and an
Less: Investments escalation framework is in place. The value of the Bank’s equity investments
held as loans and
receivables (34,445) (38,748) (2,244) (2,525) as at March 31, 2018 was USD 7.1 million (`* 464 million) (2017: USD 5.6
million, `* 362 million). The option value of convertibles was Nil at March 31,
Outstanding balance 2018 (2017: Nil).
against which
collateral held 2,477,570 2,390,813 161,476 155,822 
The Bank has devised various risk metrics for different products and
investments. These risk metrics are measured and reported to senior
* INR figures are unaudited 429
 notes
forming part of the financial statement Continued
management by the Bank’s independent Treasury Control & Services Group Liquidity risk
(TCSG). Some of the risk metrics adopted by the Bank for monitoring its Liquidity risk arises due to insufficient available cash flows including the
risks are value-at-risk (VaR), duration of equity (DoE), price value of basis potential difficulty of resorting to the financial markets in order to meet payment
point (PV01) and stop loss amongst others. The risk appetite of the Bank obligations. The Bank’s key policies for managing liquidity risk as approved by
includes limits for these risk metrics. the Board are:
VaR* is calculated using a parametric approach at a 99% confidence level over • Internal Liquidity Adequacy Assessment Process (ILAAP)
a one day holding period. The total VaR for the Bank’s AFS book portfolio,
• Liquidity contingency plan (LCP)
including investment portfolio, as at March 31, 2018 was USD 1.48 million (`*
96 million) (2017: USD 2.97 million; `* 194 million). The maximum, average and The Bank differentiates liquidity risk between funding liquidity risk and market
minimum VaR during the year for the AFS book portfolio, including investment liquidity risk. Funding liquidity risk is the risk that the Bank will not be able to
portfolio, was USD 3.01 million (`* 196 million) (2017: USD 3.47 million; `* efficiently meet cash flow requirements in a timely manner for its payment
226 million), USD 1.92 million (`* 125 million) (2017: USD 2.55 million; `* 166 obligations including liability repayments, even under adverse conditions, and
million) and USD 1.40 million (`* 91 million) (2017: USD 1.19 million; `* 78 to fund all investment/lending opportunities, even under adverse conditions.
million) respectively. Market liquidity refers to a Bank’s ability to execute its transactions and to close
out its positions at a fair market price. This may become difficult in certain
The impact of an increase in interest rates on investment securities held in
market conditions either because of the underlying product itself or because of
the AFS category (bonds, asset backed securities, treasury bills & government
the Bank’s own creditworthiness.
securities), assuming a parallel shift in yield curve, has been set out in the
following table: The Bank’s liquidity risk management philosophy is to be able, even under
adverse conditions, to meet all liability repayments on time and to fund all
March 31, March 31, March 31, March 31, investment opportunities by raising sufficient funds either by increasing
2018 2017 2018 2017 liabilities or by converting assets into cash expeditiously and at reasonable cost.
Particulars USD 000s USD 000s ` in million* ` in million*
The Bank maintains a diversified funding base comprising retail, corporate
Portfolio size (Market
customer deposits and institutional balances. These deposits are augmented
value) 535,853 414,569 34,924 27,019
by wholesale deposits, borrowings and through issuance of bonds and
Change in value due subordinated debt from time to time. The Bank has also access to funding
to 100 bps movement facilities like longer term refinancing operation (LTRO) extended by ECB and
in interest rate (12,167) (10,235) (793) (667) TFS extended by Bank of England. Loan maturities and sale of investments
Change in value due also provide liquidity. Further, the Bank holds unencumbered HQLA to protect
to 200 bps movement against stress conditions.
in interest rate (24,335) (20,470) (1,586) (1,334)
The Bank monitors and manages its overall liquidity risk appetite by ensuring
The impact of a decrease in interest rates on investment securities held in the that it maintains liquidity coverage ratio above regulatory requirements, by
AFS category (bonds, asset backed securities, treasury bills & government having adequate liquid assets for projected stressed outflows under various
securities), assuming a parallel shift in yield curve, has been set out in the scenarios and also ensures that its liquidity gap position is within the approved
following table: limit for the various time buckets. This framework is further augmented by
defining risk limits for certain liquidity risk drivers. ALCO and BRC review these
March 31, March 31, March 31, March 31, parameters on monthly and quarterly basis respectively.
2018 2017 2018 2017
Particulars USD 000s USD 000s ` in million* ` in million* The Bank mitigates the risk of a liquidity mismatch in excess of its risk appetite
Portfolio size (Market by managing the liquidity profile of the balance sheet through both short-term
value) 535,853 414,569 34,924 27,019 liquidity management and a long-term funding strategy. Short-term liquidity
management is considered from two perspectives; firstly, business as usual
Change in value due
and secondly, stressed conditions, both of which relate to funding in the less
to 100 bps movement
than one year time horizon. Longer term funding is used to manage the Bank’s
in interest rate 12,150 10,219 792 666
strategic liquidity profile which is determined by the Bank’s balance sheet
Change in value due structure.
to 200 bps movement
The Bank uses various tools for measurement of liquidity risk including the
in interest rate 24,227 20,417 1,579 1,331
statement of structural liquidity (SSL), dynamic cash flow reports, liquidity ratios
and stress testing through scenario analysis. The SSL is used as a standard
Volatility in interest rates has an impact on an entity’s interest earnings. The
tool for measuring and managing net funding requirements and for assessing
impact of an increase/decrease in interest rates on the Bank’s net interest
the surplus or shortfall of funds in various maturity buckets in the future. The
income as at March 31, 2018, assuming a parallel shift in the yield curve, has
Bank also prepares dynamic cash flow reports, which in addition to scheduled
been set out in the following table:
cash flows, also consider the liquidity requirements pertaining to incremental
Equivalent in USD million Equivalent in ` million* business and the funding thereof.
Currency Impact on Net Interest Income Impact on Net Interest Income As part of the stock and flow approach of monitoring liquidity, the Bank monitors
over a one year horizon over a one year horizon certain liquidity ratios covering various liquidity risk drivers inter-alia short-term
Increase in Decrease in Increase in Decrease in liquidity risk, structural mismatch risk, wholesale funding risk, off balance sheet
interest rates interest rates interest rates interest rates risk and non-marketable assets risk as detailed in the Bank’s ILAAP. The Bank
by 200 bps by 200 bps by 200 bps by 200 bps places particular emphasis on the withdrawable funding ratio and the customer
USD 5.1 (4.1) 332 (267) advances to total assets ratio. The withdrawable funding ratio indicates the
GBP 5.0 (7.8) 326 (508) proportion of deposits that can be withdrawn by customers without providing
EUR 2.8 2.8 182 182 notice to total funding resources. The ratio as at March 31, 2018 was 0.31 (0.26
Other as at March 31, 2017). The customer advances to total assets ratio provides a
currencies (0.2) 0.4 (13) 26 measure of the structural liquidity of the Bank’s asset portfolio. The ratio as at
Total 12.7 (8.7) 827 (567) March 31, 2018 was 0.62 (0.69 as at March 31, 2017).
The equivalent impact analysis as at March 31, 2017 is set out in the following The Bank has implemented the CRD IV liquidity guidelines as specified by PRA.
table: As per the guidelines, the Bank has prepared an ILAAP document outlining the
liquidity risk appetite of the Bank. The ILAAP document sets out the framework
Equivalent in USD million Equivalent in ` million
used to ensure that the Bank maintains sufficient liquidity at all times, including
Currency Impact on Net Interest Income Impact on Net Interest Income
periods of stress. This has been done through the robust liquidity stress testing
over a one year horizon over a one year horizon
under various identified scenarios. Under each scenario, the Bank assesses
Increase in Decrease in Increase in Decrease in
the behavior of each liquidity risk drivers and estimates the amount of liquidity
interest rates interest rates interest rates interest rates
required to mitigate net stress outflows. The stress testing is carried out daily.
by 200 bps by 200 bps by 200 bps by 200 bps
The results of the stress test are reported to the ALCO and BRC & Board on
USD 6.9 (2.0) 450 (130)
a monthly and quarterly basis respectively. Further, from October 1, 2015 the
GBP 6.6 (9.3) 430 (606)
Bank maintains LCR as stipulated by the PRA. The Bank also tracks its Net
EUR 0.6 2.2 39 143
Stable Funding ratio (NSFR), though it is yet to be introduced as a regulatory
Other
currencies (0.0) 0.0 - - requirement.
Total 14.1 (9.1) 919 (593) The Bank also has a LCP which details the overall approach and actions the
Bank would undertake in order to manage the Bank’s liquidity position during
* VAR calculation and INR figures are unaudited

430 * INR figures are unaudited

notes
forming part of the financial statement Continued

stressed conditions. The LCP addresses both the funding and operational requirements of the Bank and sets-out a funding, operational and communication plan to enable
the Bank to deal with a liquidity crisis. In summary, the Bank seeks to follow a conservative approach in its management of liquidity and has in place, a robust governance
structure, policy framework and review mechanism to ensure availability of adequate liquidity even under stressed market conditions.
Refer Note 39 for details on the cash flow payable under contractual maturity.

39 Cash flow payable under contractual maturity

At March 31, 2018, the contractual maturity comprised
USD 000s
Less than 3 More than 3 More than 6 More than 1 More than Total
months months but not months but year but not 5 years
more than 6 not more than more than 5
months 1 year years
Deposits by banks 275,199 177,386 177,375 301,973 - 931,933
Customer accounts# 1,202,509 147,262 176,362 229,324 3,181 1,758,638
Other liabilities 12,906 - - - 159 13,065
Derivative financial liabilities 6,647 215 83 5,911 245 13,101
Accruals and deferred income# 15,274 - - - - 15,274
Bonds and medium term notes 72,595 32,120 103,555 162,778 - 371,048
Subordinated debt 2,613 2,613 5,255 167,315 - 177,796
Repurchase Agreements - 35,064 52,980 62,942 - 150,986
Total Liabilities 1,587,743 394,660 515,610 930,243 3,585 3,431,841
At March 31, 2018, the contractual maturity comprised
` in million*
Less than 3 More than 3 More than 6 More than 1 More than 5 Total
months months but not months but year but not years
more than 6 not more than more than 5
months 1 year years
Deposits by banks 17,936 11,561 11,561 19,681 - 60,739
Customer accounts# 78,374 9,598 11,494 14,946 207 114,619
Other liabilities 841 - - - 10 851
Derivative financial liabilities 433 14 5 385 17 854
Accruals and deferred income# 995 - - - - 995
Bonds and medium term notes 4,731 2,093 6,749 10,610 - 24,183
Subordinated debt 170 170 342 10,905 - 11,587
Repurchase Agreements - 2,285 3,453 4,103 - 9,841
Total Liabilities 103,480 25,721 33,604 60,630 234 223,669

At March 31, 2017, the contractual maturity comprised

USD 000s
Less than 3 More than 3 More than 6 More than 1 More than 5 Total
months months but not months but not year but not years
more than 6 more than 1 more than 5
months year years
Deposits by banks 72,823 76,571 267,362 193,477 - 610,233
Customer accounts# 1,060,105 177,233 256,958 164,818 2,818 1,661,932
Other liabilities 20,839 - - - - 20,839
Derivative financial liabilities 1,203 1,240 1,199 787 1,000 5,429
Accruals and deferred income# 13,210 - - - - 13,210
Bonds and medium term notes 1,754 55,858 122,900 173,898 - 354,410
Subordinated debt 29,299 2,614 5,257 177,811 - 214,981
Repurchase Agreements 39,766 - - 90,018 - 129,784
Total Liabilities 1,238,999 313,516 653,676 800,809 3,818 3,010,818

` in million*
Less than 3 More than 3 More than 6 More than 1 More than 5 Total
months months but not months but not year but not years
more than 6 more than 1 more than 5
months year years
Deposits by banks 4,747 4,991 17,425 12,610 - 39,773
Customer accounts# 69,091 11,551 16,747 10,742 185 108,316
Other liabilities 1,359 - - - - 1,359
Derivative financial liabilities 78 81 78 51 65 353
Accruals and deferred income# 861 - - - - 861
Bonds and medium term notes 114 3,641 8,010 11,334 - 23,099
Subordinated debt 1,910 170 343 11,589 - 14,012
Repurchase Agreements 2,592 - - 5,867 - 8,459
Total Liabilities 80,752 20,434 42,603 52,193 250 196,232
# Interest accrued on customer deposits is reclassified into customer accounts.

The balances as noted above incorporate all cash flows on an undiscounted basis which relates to the principal and future coupon payments (except for trading liabilities
and trading derivatives).

* INR figures are unaudited 431

 notes
forming part of the financial statement Continued
The Bank does not have any convertible debt securities as on March 31, 2018 valuation discounts the estimated future cash flows, computed based on the
(Nil for March 2017) prevailing interest rates and credit spreads in the market.
40 Fair values of financial assets and financial liabilities 4. Financial instruments such as other assets and other liabilities are expected
Set out below is a comparison by category of book values and fair values of the to have the similar fair value as the carrying value as these are short term in
Bank’s trading and non trading financial assets and financial liabilities as at the nature.
year end.
41 Derivative financial instruments
USD 000s  The Bank enters into various financial instruments as principal to manage
March 31, March 31, March 31, March 31, balance sheet interest rate and foreign exchange rate risk. These mainly include
2018 2018 2017 2017 interest rate swaps and exchange rate related contracts.
Fair value Book value Fair value Book value
Non trading book financial assets and liabilities Exchange rate related contracts include spot, currency swaps and forward
Assets: transactions. The Bank’s currency swap transactions generally involve an
exchange of currencies and an agreement to re-exchange the currency at a
Cash and cash
future date where the swaps relate to assets and liabilities denominated in
equivalents 500,246 500,246 281,910 281,910
different currencies.
Loans and advances
to banks 137,553 137,553 55,226 55,226 The Bank uses derivatives to mitigate interest rate risk. Hedge accounting is
Loans and advances applied to derivatives and hedged items when the criteria under IAS 39 for financial
to customers 2,379,471 2,365,651 2,333,604 2,332,132 instruments as permitted by FRS 102, have been met. The swaps exchange fixed
Investment securities 805,365 804,895 689,214 683,306 rate for floating rate on assets/liabilities to match the floating rates paid/received on
Liabilities: funding or exchanges fixed rates on funding to match the floating rates received/
paid on assets/liabilities. For qualifying hedges, the fair value changes of the
Deposits by banks and
derivative are substantially matched by corresponding fair value changes of the
customer accounts 2,667,500 2,665,258 2,252,594 2,251,013
hedged item, both of which are recognised in profit and loss.
Bonds and medium
term notes 360,899 359,781 344,823 344,197
Change in fair value under hedge accounting:
Subordinated debts 159,336 149,880 194,000 176,149
As at March 31, 2018, the notional amounts of interest rate swaps and foreign
Repurchase
exchange contract designated as fair value hedges were USD 433 million
agreements 150,986 150,986 129,784 129,784
(`* 28,228 million) (2017: USD 361 million; `* 23,521 million) and these
Financial assets and liabilities at fair value through profit and loss contracts had a net positive fair value of USD 8.47 million (`* 552 million) (2017:
Assets: net positive fair value of USD 1.12 million; `* 73 million).The notional principal
Derivative financial amounts of these instruments are not indicative of the amounts at risk which
instruments 24,295 24,295 25,750 25,750 are smaller amounts payable under the terms of these instruments and upon
Liabilities: the basis of the contract or notional principal amount. Derivatives contracts in
Derivative financial the non-trading book are used for hedging purposes only and are accounted for
instruments 17,572 17,572 15,719 15,719 on this basis and are executed with bank counterparties for whom volume and
settlement limits have been approved. Counterparty group limits are approved
` in million* for connected exposures.
March 31, March 31, March 31, March 31, The methodologies for the valuation of derivative products are defined in
2018 2018 2017 2017 the Valuation Policy of the Bank, which has been approved by the Board Risk
Fair value Book value Fair value Book value
Committee (BRC) of the Bank. The Bank uses swap rates, cross currency basis
Non trading book financial assets and liabilities
spreads and spot rates as inputs for the valuation of currency swaps and foreign
Assets: exchange forward transactions. Further, the Bank uses swap rates and interest
Cash and cash rate basis spreads as inputs for the valuation of interest rate swaps. Inputs are
equivalents 32,604 32,604 18,373 18,373 drawn from Reuters on a real time basis. While the currency wise cash flows for
Loans and advances currency swaps and forward transactions are discounted with the appropriate
to banks 8,965 8,965 3,599 3,599 swap rate for the respective currency and the applicable cross currency basis
Loans and advances spread, cash flows for interest rate swaps are discounted with the appropriate
to customers 155,082 154,181 152,093 151,997 zero rate for the currency. Further, the floating rate cash flows for currency
Investment securities 52,490 52,459 44,920 44,534 swaps and forward transactions are calculated from the zero rates derived from
Liabilities: the swap curve and the appropriate basis spread applicable for the currency.
Deposits by banks and The floating rate cash flows for interest rate swaps are calculated from the
customer accounts 173,854 173,708 146,813 146,709 zero rates derived from the swap curve and the appropriate interest rate basis
Bonds and medium applicable for the currency.
term notes 23,522 23,449 22,474 22,433
Subordinated debts 10,385 9,768 12,644 11,481
March 31, March 31, March 31, March 31,
Repurchase 2018 2017 2018 2017
agreements 9,841 9,841 8,459 8,459 USD 000s USD 000s ` in million* ` in million*
Financial assets and liabilities at fair value through profit and loss Change in fair value
Assets: of hedged items
Derivative financial recognised in profit
instruments 1,583 1,583 1,678 1,678 and loss account (1,003) (22,155) (64) (1,443)
Liabilities: Investments (4,725) (3,536) (308) (230)
Derivative financial
Borrowings, including
instruments 1,145 1,145 1,025 1,025
repurchase 3,722 1,324 244 87
Notes: Loans and receivable - (33) - (2)
1. Fair value of loans and advances to banks and customers is determined Deposits - (19,910) - (1,298)
using weighted average margins on market transactions done by the Bank Change in fair value of
during the year for loans with similar maturity and rating profile. The fair hedged instruments
valuation is carried out post segmenting the disbursements done during recognised in profit
the year by internal rating and tenor and comparing the pricing on the new and loss account 1,199 21,964 78 1,432
disbursements with the existing portfolio. The difference is considered as
the fair value adjustment. The Bank has computed the Credit Value Adjustment (CVA) and Debit Value
Adjustment (DVA) for the derivative portfolio which amounted to USD 79
2. The fair value of deposits by banks and customers has been estimated using
thousand (`* 5 million) and USD 27 thousand (`* 2 million) respectively. The
current interest rates offered for deposits of similar maturities.
CVA and DVA have been computed similar to Basel II collective provisioning
3. The fair value of debt securities is derived based on prevalent market quotes using the MTM exposures; rating wise probability of defaults as published by
as at balance sheet date. In case market quotes are not available the Bank S&P; and 45% loss given default as used in the Basel’s foundation IRB approach.
has used the internal valuation technique to calculate the fair value. Internal

432 * INR figures are unaudited

notes
forming part of the financial statement Continued

Principal amounts of derivative financial instruments As at March 31, 2017

As at March 31, 2018
USD 000s
USD 000s Foreign exchange Interest rate
Non trading Trading Gross Gross contracts
Instrument Notional Notional Positive negative Gross Gross Gross Gross
Principal Principal Fair Value Fair Value Positive Negative Positive Negative
Foreign exchange & Cross Fair Value Fair Value Fair Value Fair Value
currency interest rate swaps - 1,014,509 13,377 10,852 Level 1 187 206 -  - 
Interest rate 433,117 402,096 10,918 6,668 Level 2 12,675 4,444 12,888 11,039
Total 433,117 1,416,605 24,295 17,520 Level 3 -  -  -  - 
Total 12,862 4,650 12,888 11,039
As at March 31, 2018
` in million* As at March 31, 2017
Non trading Trading Gross Gross ` in million*
Instrument Notional Notional Positive negative Foreign exchange Interest rate
Principal Principal Fair Value Fair Value contracts
Foreign exchange & Cross Gross Gross Gross Gross
currency interest rate swaps - 66,121 872 707 Positive Fair NegativePositive Fair Negative
Interest rate 28,228 26,207 712 435 Value Fair Value Value Fair Value
Total 28,228 92,328 1,584 1,142 Level 1 12 13 - -
Principal amounts of derivative financial instruments Level 2 826 290 840 719
Level 3 - - - -
As at March 31, 2017
USD 000s Total 838 303 840 719
Non trading Trading Gross Gross
Instrument Notional Notional Positive negative #excludes Credit Value Adjustment (CVA) and Debit Value Adjustment (DVA)
Principal Principal Fair Value Fair Value for the derivative portfolio which amounted to USD 52 thousand (`* 3 million)
(2017: USD 30 thousand (`* 2 million).
Foreign exchange & Cross
currency interest rate swaps 62,455 967,561 12,862 4,650
42 Assets and liabilities denominated in foreign currency
Interest rate 298,433 593,611 12,888 11,039
Total 360,888 1,561,172 25,750 15,689 March 31, March 31, March 31, March 31,
2018 2017 2018 2017
As at March 31, 2017
USD 000s USD 000s ` in million* ` in million*
` in million* Denominated in US
Non trading Trading Gross Gross Dollars 1,850,631 2,155,216 120,616 140,467
Instrument Notional Notional Positive negative
Denominated in Sterling 1,163,053 779,495 75,802 50,804
Principal Principal Fair Value Fair Value
Foreign exchange & Cross Denominated in other
currency interest rate swaps 4,071 63,061 838 303 currencies 870,656 545,055 56,745 35,523
Interest rate 19,450 38,689 840 719 Total assets 3,884,340 3,479,766 253,163 226,794
Total 23,521 101,750 1,678 1,022
#excludes Credit Value Adjustment (CVA) and Debit Value Adjustment (DVA) Denominated in US
for the derivative portfolio which amounted to USD 52 thousand (`* 3 million) Dollars 2,005,739 1,793,042 130,725 116,863
(2017: USD 30 thousand (`* 2 million).
Denominated in Sterling 1,500,233 1,275,665 97,778 83,141
As at March 31, 2018, the value of the equity options relating to the Foreign
Currency Convertible Bonds was nil. As at March 31, 2017 these equity options Denominated in other
had Nil value. These options were valued based on valuation techniques with currencies 378,368 411,059 24,660 26,790
observable market inputs and are classified as level 2. Refer to note 21 for Total liabilities 3,884,340 3,479,766 253,163 226,794
details of fair value leveling methodology. There were no transfers of derivative
financial instruments between level 1, level 2 and level 3 during the year. The above should not be considered to demonstrate the Bank’s exposure to
foreign exchange risk due to the existence of compensating exchange rate
Derivative financial instruments by valuation method
contracts as discussed in Note 41 which are held for hedging purposes.
As at March 31, 2018
The Bank follows a conservative policy with regard to its Foreign exchange risk
USD 000s which is managed within the Treasury function in accordance with the position
Foreign exchange contracts Interest rate limits approved by the Board Risk Committee and by using value-at- risk measure.
Gross Gross Gross Gross The Net overnight open position (NOOP) of the Bank as at March 31, 2018 was USD
Positive Fair Negative Positive Fair Negative 3.7 million (`* 241 million) (2017: USD 1.4 million; `* 91 million).
Value Fair Value Value Fair Value
Level 1 320 542 -  -  43 Post balance sheet events
Level 2 13,057 10,310 10,918 6,668 There have been no material events after the balance sheet date which would
require disclosure or adjustments to the March 31, 2018 financial statements.
Level 3 -  -  -  - 
Total 13,377 10,852 10,918 6,668 44 Ultimate parent company and parent undertaking of larger group of which the
Bank is a member
As at March 31, 2018  The Bank is a wholly owned subsidiary of ICICI Bank Limited. The parent
` in million* company is incorporated in India, having registered address at ICICI Bank
Foreign exchange contracts Interest rate Tower, Near Chakli Circle, Old Padra Road, Vadodara 390007, Gujarat, India.
Copies of the group accounts for ICICI Bank Limited can be obtained from the
Gross Gross Gross Gross
Secretarial Department, ICICI Bank Limited, ICICI Bank Towers, Bandra-Kurla
Positive Fair Negative Positive Fair Negative
Complex, Mumbai 400051, India.
Value Fair Value Value Fair Value
Level 1 21 35 0 0
Level 2 851 672 712 435
Level 3 - - - -
Total 872 707 712 435

* INR figures are unaudited 433

 ICICI BANK CANADA
14th Annual Report and Accounts 2017 (as of December 31, 2017)
Directors Auditors Registered Office
Chanda Kochhar, Chairperson KPMG LLP 150 Ferrand Drive
N.S. Kannan Suite 1200
Vijay Chandok Toronto, Ontario
Yezdi Pavri Canada M3C 3E5
Lawrence Savage
Pamela G. Pitz Corporate Secretary
Glenn R. Rourke Anthony Coulthard
Sriram H. Iyer, President & CEO

management’s report
to the members

The Management of ICICI Bank Canada (the “Subsidiary”) is pleased to present their
fourteenth annual report and accounts 2017, together with the financial statements
and auditors’ report for the year ended December 31, 2017. All information provided
in this Management Report is as at December 31, 2017.
Principal Activities
The Subsidiary, a wholly-owned subsidiary of ICICI Bank Limited (the “Parent”), is
a full service direct bank with an asset base of about C$6.2 billion, as at December
31, 2017, offering a comprehensive suite of personal, commercial and cross-border
banking products and services. The Subsidiary is supported by a state-of-the-art
electronic banking platform (icicibank.ca), a 24-hour toll-free customer contact centre
and proprietary ABMs. It has established its branch network in the Greater Toronto
Area (Brampton, Downtown Toronto, Mississauga, Scarborough, Gore Road and
Don Valley), the Greater Vancouver Area (Surrey) and in Calgary, Alberta.
Directors’ Interests
None of the Directors of the Subsidiary has any interest in its share capital.
Share Capital
The Subsidiary is authorized to issue an unlimited number of common shares
without par value and an unlimited number of non-voting preferred shares without
par value.
As at December 31, 2017, the Subsidiary had issued 839.5 million common shares
to its Parent. The Subsidiary has not declared and paid any dividends on its common
shares to the Parent during the year ended December 31, 2017.

The Subsidiary is regulated by the Ministry of Finance (Canada), and operates under
the supervision of the Office of the Superintendent of Financial Institutions. It is also
a member of the Canada Deposit Insurance Corporation.

Directors and Corporate Secretary

The names of the Directors and the Corporate Secretary of the Subsidiary are as
follows:

Chanda Kochhar, Chairperson ANTHONY COULTHARD

N.S. Kannan Corporate Secretary
Vijay Chandok
Yezdi Pavri
Lawrence Savage
Pamela G. Pitz
Glenn R. Rourke
Sriram H. Iyer, President & CEO
Anthony Coulthard, Corporate Secretary

434
independent auditors’ report
to the shareholders of ICICI Bank Canada
We have audited the accompanying financial statements of ICICI Bank Canada, which assessments, we consider internal control relevant to the entity’s preparation and
comprise the statement of financial position as at December 31, 2017, the statements fair presentation of the financial statements in order to design audit procedures
of comprehensive income, changes in shareholders’ equity and cash flows for the that are appropriate in the circumstances, but not for the purpose of expressing an
year then ended, and notes, comprising a summary of significant accounting policies opinion on the effectiveness of the entity’s internal control. An audit also includes
and other explanatory information. evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these We believe that the audit evidence we have obtained is sufficient and appropriate to
financial statements in accordance with International Financial Reporting Standards, provide a basis for our audit opinion.
and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement,
whether due to fraud or error. Opinion
In our opinion, the financial statements present fairly, in all material respects, the
financial position of ICICI Bank Canada at December 31, 2017 and its financial
Auditors’ Responsibility
performance and its cash flows for the year then ended in accordance with
Our responsibility is to express an opinion on these financial statements based International Financial Reporting Standards.
on our audit. We conducted our audit in accordance with Canadian generally
accepted auditing standards. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend For KPMG LLP
on our judgment, including the assessment of the risks of material misstatement Toronto, Canada Chartered Professional Accountants
of the financial statements, whether due to fraud or error. In making those risk February 27, 2018 Licensed Public Accountants

435
statements of statements of
financial position comprehensive income
as at for the year ended December 31,
$ 000’s $ 000’s
December December 2017
31, 2017 31, 2016 2016

Assets Interest income:

Cash and deposits with banks [note 1]: Loans 175,527 189,611
Notes and coins 2,041 1,598 Securities 5,075 3,676
Deposits with regulated financial institutions:
Deposits with regulated financial institutions 121 806
Interest bearing 23,488 51,717
180,723 194,093
Non-interest bearing 18,289 28,569
43,818 81,884 Interest expense:

Derivative assets [note 3] 25,552 10,505 Deposits 46,562 53,631

Investment securities [note 2]: Available-for-sale 481,621 552,067 Secured borrowings 54,528 54,146
Loans, net of allowance for credit losses [note 4]: Short-term borrowings [note 11] 94 457
Commercial and corporate loans and commercial 2,163,253 2,169,037
mortgages 101,184 108,234

Residential mortgages 440,892 437,106 Net interest income 79,539 85,859

Securitized residential mortgages 2,924,879 3,093,182 Fee and commission income [note 14] 9,390 7,137
Personal 40,403 48,805
Net trading income [note 15] (87) 21
5,569,427 5,748,130
Other income [note 16] 155 10,526
Other:
Total revenue 88,997 103,543
Interest accrued on loans and deposits 8,303 7,582
Property and equipment [note 5] 1,075 1,291 Net impairment loss on loans [note 4] (1,549) 121,049
Deferred tax assets [note 13] 8,915 9,072 Personnel expenses 19,496 17,256
Other assets [note 6] 27,226 38,708 Depreciation [note 5] 599 575
45,519 56,653
Other expenses [note 17] 16,440 13,990
Total assets 6,165,937 6,449,239
34,986 152,870
Liabilities and Shareholders' Equity Profit before income taxes 54,011 (49,327)
Deposits from customers [note 7]: Income tax expense/ (recovery) [note 13] 14,760 (12,744)
Personal 2,398,110 2,384,891
Profit after income taxes 39,251 (36,583)
Commercial 151,180 178,340
Other comprehensive income/ (loss), net of income
2,549,290 2,563,231 taxes:
Derivative liabilities [note 3] 5,692 46,554
Items that may be reclassified subsequently to
Deposits from banks 1,193 406 income:
Current tax liabilities - -
- Cash flow hedges:
Interest accrued on deposit liabilities 27,235 32,038
Effective portion of changes in fair value 76 3,145
Accounts payable and other liabilities [note 8] 34,006 11,839
Secured borrowings [note 10] 2,891,807 3,054,246 Net amount transferred to profit or loss (232) 631

Total liabilities 5,509,223 5,708,314 - Income tax (expense)/ benefit: 42 (1,001)

Shareholders' equity: -
Fair value reserve (available-for-sale financial
Share capital [note 12]: assets):

Common share capital 569,500 634,500 Net change in fair value (5,672) (90)
Additional paid-in capital 7,114 5,841 Net amount transferred to profit or loss 255 (4,162)
Preferred share capital - 55,639 - Income tax (expense)/ benefit: 1,435 1,128
Retained earnings 82,563 43,312
Other comprehensive income/ (loss), net of income (4,096) (349)
Accumulated other comprehensive income (2,463) 1,633 taxes
Total equity 656,714 740,925 Total comprehensive income attributable to equity 35,155 (36,932)
Total liabilities and shareholders' equity 6,165,937 6,449,239 holders

See accompanying notes to financial statements See accompanying notes to financial statements

For and on behalf of the Board For and on behalf of the Board

For KPMG LLP For KPMG LLP

Chartered Professional Accountants Director Director Chartered Professional Accountants Director Director
Licensed Public Accountants Licensed Public Accountants
Toronto, Canada, February 27, 2018 Toronto, Canada, February 27, 2018

436
statements of changes in shareholders’ equity
for the year ended December 31

$ 000’s

Common share Additional paid-in Preferred share Retained Accumulated other Accumulated other Accumulated other Total
capital [note 12] capital [note 12] capital [note 12] earnings comprehensive income comprehensive comprehensive
on AFS securities income on loans income on hedges
Balance as at January 1, 2017 634,500 5,841 55,639 43,312 22 364 1,247 740,925
Comprehensive income
Profit after income taxes - - - 39,251 - - - 39,251
Other comprehensive income, net of income tax recovery of $1,477
Net unrealized gain/ (loss) during the year - - - - (4,169) - - (4,169)
Net realized gain/ (loss) on hedges during the year - - - - - - 56 56
Amortization of other comprehensive income during the year - - - - - 491 (170) 321
Net amount transferred to profit or loss on sale/ redemption - - - - 541 (845) - (304)
Net unrealized gain on bonds reclassified to loans - - - - - - - -
Total comprehensive income - - - 39,251 (3,628) (354) (114) 35,155
Transactions with owners, recorded directly in equity
Additional paid-in capital expense - 1,273 - - - - - 1,273
Dividends declared and paid - - - - - - - -
Repatriation of capital (65,000) - (55,639) - - - - (120,639)
Balance as at December 31, 2017 569,500 7,114 - 82,563 (3,606) 10 1,133 656,714

Balance as at January 1, 2016 684,500 4,613 92,732 98,235 64 3,446 (1,528) 882,062
Comprehensive income
Profit after income taxes - - - (36,583) - - - (36,583)
Other comprehensive income, net of income tax recovery of $127
Net unrealized gain/ (loss) during the year - - - - (66) - - (66)
Net realized gain/ (loss) on hedges during the year - - - - - - 2,312 2,312
Amortization of other comprehensive income during the year - - - - - 2,661 463 3,124
Net amount transferred to profit or loss on sale/ redemption - - - - 24 (5,743) - (5,719)
Net unrealized gain on bonds reclassified to loans - - - - - - - -
Total comprehensive income - - - (36,583) (42) (3,082) 2,775 (36,932)
Transactions with owners, recorded directly in equity
Additional paid-in capital expense - 1,228 - - - - - 1,228
Dividends declared and paid - - - (18,340) - - - (18,340)
Repatriation of capital (50,000) - (37,093) - - - - (87,093)
Balance as at December 31, 2016 634,500 5,841 55,639 43,312 22 364 1,247 740,925
See accompanying notes to financial statements

statements of cash flows

for the year ended December 31
$ 000’s
2017 2016
Cash flow from operating activities:
Profit after income taxes 39,251 (36,583)
Adjustments for:
Net impairment loss on loans and advances (1,549) 121,049
Depreciation 599 575
Net realized gain/(loss) on non-trading securities (1,488) (8,746)
Income tax expense 14,760 (12,744)
Net interest income (79,539) (85,859)
Net change in derivative financial instruments (55,909) (41,968)
(83,875) (64,276)
Change in:
Deposits, net (13,154) (86,253)
Treasury borrowings, net - (61,849)
Loans and advances, net 180,252 (107,718)
Other items, net 13,817 (55,504)
180,915 (311,324)
Interest received 178,509 197,168
Interest paid (105,987) (115,763)
Income tax refund/ (payment) 2,046 (5,400)
74,568 76,005
Net cash used in operating activities 171,608 (299,595)
Cash flow from investing activities:
Acquisition of securities (2,864,724) (992,710)
Net proceeds from sale of securities 2,938,151 1,013,960
Acquisition of property and equipment, net (384) (621)
Net cash from/(used in) investing activities 73,043 20,629
Cash flow from financing activities:
Repatriation of common equity capital (65,000) (50,000)
Repatriation of prefered share capital (55,639) (37,093)
Repayment of subordinated notes - -
Proceeds/(repayment) of secured borrowings, net (162,439) 172,469
Dividends paid - (18,340)
Net cash from financing activities (283,078) 67,036
Net increase/(decrease) in cash and cash equivalents (38,427) (211,930)
Effect of exchange rate fluctuations on cash and cash equivalents held 361 257
Cash and cash equivalents, beginning of year 81,884 293,557
Cash and cash equivalents, end of year [note 1] 43,818 81,884
Represented by:
Notes and coins 2,041 1,598
Interest bearing deposits with regulated financial institutions 23,488 51,717
Non-interest bearing deposits with regulated financial institutions 18,289 28,569
43,818 81,884
See accompanying notes to financial statements
437
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

I. Reporting entity 1. Cash and deposits with banks
ICICI Bank Canada (the “Bank”) is a limited liability company, incorporated and Cash and cash equivalents include cash balances on hand and interest
domiciled in Canada. It is a wholly owned subsidiary of ICICI Bank Limited (the bearing and non-interest bearing deposits with regulated financial
“Parent”) and the address of the Bank’s registered office is Don Valley Business institutions with an original maturity of 90 days or less and that are subject
Park, 150 Ferrand Drive, Suite 1200, Toronto, ON, M3C 3E5. The Office of the to an insignificant risk of changes in their fair value, and are used by the
Superintendent of Financial Institutions Canada (“OSFI”) granted the Bank Bank in the management of its short-term cash commitments. Cash and
its Letters Patent of Incorporation on September 12, 2003, and an Order to cash equivalents are measured at amortized cost. As at December 31, 2017,
Commence and Carry on Business on November 25, 2003. The Bank launched there were no deposits (2016 - nil) with regulated financial institutions with
its operations on December 19, 2003. an original maturity of over 90 days.

II. Basis of preparation 2. Financial assets

 Financial assets are classified into the following categories: financial
a) Statement of compliance
assets held for trading (trading account securities); available-for-sale
 These financial statements have been prepared in accordance with (“AFS”) financial assets; held-to-maturity (“HTM”) investments and loans
International Financial Reporting Standards (“IFRS”) as issued by the and receivables. Management determines the classification of its financial
International Accounting Standards Board (“IASB”) and accounting instruments at initial recognition. All regular way purchases or sales of
requirements of OSFI in accordance with Section 308 of the Bank Act financial assets are recognized and derecognized on a trade date basis.
(Canada). Section 308(4) of the Bank Act (Canada) states that, except as
otherwise specified by OSFI, the financial statements are to be prepared Trading account securities
in accordance with generally accepted accounting principles, the primary Trading account securities are recorded on the statements of financial
source of which is the Handbook of Chartered Professional Accountants of position at fair value. Transaction costs are recognized in the statements of
Canada. comprehensive income when incurred. The fair values of trading account
The financial statements for the year ended December 31, 2017 have been securities are based on quoted market prices where available; otherwise, the
approved for issue by the Bank’s Board of Directors on February 27, 2018. fair values are estimated using quoted market values for similar securities
or other approaches (primarily, discounted cash flows) that maximize use
b) Basis of measurement of available market information. Gains and losses arising from changes in
These financial statements have been prepared on the historical cost basis, fair value are recognized in the statements of comprehensive income under
except for the following items in the statements of financial position that are “Net trading income”.
measured at fair value: The Bank did not hold any trading account securities as at December 31,
• Available-for-sale investment securities 2017 (2016 - nil).
• Derivative assets and derivative liabilities
AFS securities
c) Functional and presentation currency AFS securities are recognized initially at fair value and transaction costs
are added to the initial carrying value of the securities. AFS securities are
 These financial statements are presented in Canadian dollars, which is
subsequently measured at fair value with unrealized gains and losses being
the Bank’s functional currency. Except as otherwise indicated, financial
recognized in OCI until sale, or impairment, at which point, the cumulative
information presented in Canadian dollars has been rounded to the nearest
gain or loss is transferred from other comprehensive income to profit or
thousand.
loss. Foreign exchange gains/ losses on foreign currency denominated
d) Use of estimates and judgements AFS debt securities are recognized in the statement of comprehensive
income under “Foreign exchange gain, net” and reported as a part of “Other
 In preparing these financial statements, management has made judgments,
Income”. Interest income is determined in accordance with the effective
estimates and assumptions that affect the application of the Bank’s
interest method and is included in “Interest income: Securities”, in the
accounting policies and the reported amounts of assets, liabilities, income
statements of comprehensive income.
and expenses. Actual results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions As at December 31, 2017, the amortized cost of AFS securities exceeded
to estimates are recognized prospectively. the fair value by $4,907 (2016 - fair value exceeded amortized cost by $29).
The composition and maturity profile of AFS securities are as follows:
(i) Judgements
Information about judgements made in applying accounting policies $ 000’s
that have the most significant effects on the amounts recognized in the December 31, 2017 Under 1 to 5 Over Total AFS
financial statements is set out below: 1 year years 5 years securities
• Note 2 - impairment of financial assets Canadian federal & provincial 115,624 316,028 - 431,652
bonds and treasury bills
• Note 3 - accounting for hedges
Bankers Acceptance 49,969 - - 49,969
• Note 4 - impairment of loans
165,593 316,028 - 481,621
• Note 10 - accounting for mortgage securitization
• Note 19 - classification of financial instruments $ 000’s
December 31, 2016 Under 1 to 5 Over Total AFS
(ii) Assumptions and estimation uncertainties
1 year years 5 years securities
Information about assumptions and estimation uncertainties that have
a significant risk of resulting in a material adjustment to the amounts Canadian federal & provincial 422,184 19,928 - 442,112
reported in these financial statements is set out below in the following bonds and treasury bills
notes: Bankers Acceptance 109,955 - - 109,955
• Note 4 - loan loss estimates 532,139 19,928 - 552,067
• Note 13 - deferred tax assets
• Note 19 - fair values of financial instruments The fair values and unrealized gains/losses on the AFS securities are as
follows:
e) Changes in accounting policies $ 000’s
The Bank actively monitors developments and changes in standards from December 31, 2017 Amortized Gross Gross Fair value
the IASB as well as regulatory requirements from OSFI. There were no new cost unrealized unrealized of AFS
accounting policies/ revisions required to be adopted in the current year. gains losses securities
Canadian federal & 436,552 4 4,904 431,652
III. Significant accounting policies and note disclosures
provincial bonds and
The significant accounting policies used in the preparation of these financial treasury bills
statements, including the accounting requirements of OSFI, are summarized
Bankers Acceptance 49,976 - 7 49,969
below together with the related disclosures. These accounting policies have
been applied consistently to all years presented in these financial statements. 486,528 4 4,911 481,621

438
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

$ 000’s The hedge documentation includes identification of the asset, liability, firm
December 31, 2016 Amortized Gross Gross Fair value commitment or highly probable forecasted transaction being hedged, the
cost unrealized unrealized of AFS nature of the risk being hedged, the hedging instrument used and the method
gains losses securities used to assess the effectiveness of the hedge. The Bank also formally assesses,
both at each hedge’s inception and on an ongoing basis, whether the hedging
Canadian federal & provincial
instruments are highly effective in offsetting changes in cash flows of hedged
bonds and treasury bills 442,077 45 10 442,112 items. The change in fair value of the hedging instrument, to the extent effective,
Bankers Acceptance 109,961 - 6 109,955 is recorded in OCI until the corresponding gains and losses on the hedged item
552,038 45 16 552,067 is recognized in income. Hedge ineffectiveness is measured and recorded in
“Net trading income – Gain on derivative transactions”, in the statements of
As at December 31, 2017, no AFS securities were denominated in currencies comprehensive income.
other than Canadian dollars (2016 - nil).
The trading derivatives are carried at fair value with changes in fair value
At each reporting date, the Bank assesses on an individual basis, whether there
recorded in net trading income in the statements of comprehensive income.
is objective evidence that one or more AFS securities are impaired. An AFS
The Bank takes into account its own credit risk and that of the relevant
security is impaired when objective evidence demonstrates that a loss event
counterparties when determining the fair value of derivative instruments. As
has occurred after the security’s initial recognition, and that the loss event has
at December 31, 2017, the fair values of all derivative assets and derivative
an impact on the future cash flows of the security that can be estimated reliably.
liabilities were $25,552 (2016 - $10,505) and $5,692 (2016 - $46,554) respectively.
Objective evidence of impairment can include significant financial difficulty of
the borrower or issuer, default or delinquency by a borrower, restructuring of The following is a summary of the notional amounts by remaining term to
the security, indications that a borrower or issuer will enter bankruptcy, or the maturity of the Bank’s outstanding derivative portfolio, all of which are over-
disappearance of an active market for a security. the-counter, as at December 31:
Impairment losses on AFS securities are recognized by transferring the
cumulative loss that has been recognized in OCI to profit or loss as a $ 000’s
reclassification adjustment. The cumulative loss that is reclassified from OCI to 2017 2016
profit or loss is the difference between the acquisition cost, net of any principal Under 1 to 5 Over Total Total
repayment, amortization, and the current fair value, less any impairment loss 1 year years 5 years
previously recognized in profit or loss. There were no impairment losses during Trading
2017 (2016 - nil). Forward foreign
During the year ended December 31, 2013, the Bank had reclassified its corporate exchange contracts 171 - - 171 12,108
bonds with a carrying value of $532,093 at that time from AFS securities Foreign currency
classification to Loans classification [refer to note 4]. Further, net unrealized 2,207,972
swaps 1,269,325 - - 1,269,325
gains of $10,599, recognized in the OCI upto the date of reclassification of AFS Interest rate swaps 35,973 - - 35,973 47,721
securities to Loans classification are being amortized through interest income Hedging
using the effective interest rate of the securities reclassified.
Bond forwards - - -- - -
The Bank is a member of the Large Value Transfer System (LVTS), Canada’s real 1,305,469 - - 1,305,469 2,267,801
time electronic system for processing payments. The Bank has placed a collateral
of $30,000 (2016 - $35,000) in the nature of federal and provincial securities The following is a summary of the gross fair value of the Bank’s outstanding
with Bank of Canada to facilitate transactions under LVTS. Further during the derivative portfolio, before credit valuation adjustment (“CVA”) of $3 (2016 -
year, the Bank has agreed to partner with Central1 to offer “E-transfer” facility $8) on positive fair values and of $8 (2016 - $56) on negative fair values, as at
to its customers. E-Transfer is a product offered by the Interac Association and December 31:
opted by financial institutions. Using this facility, customers of the Bank will be
$ 000’s
able to send money to anyone with an email address and a bank account in
Canada, without sharing any other personal financial information. As a part of December 31, 2017 Positive Negative Net fair
the arrangement, the Bank has placed a collateral in the nature of government fair value fair value value
securities of $260 (2016 - nil) with Central1 and the product will be available for Trading
use by its customers in early 2018. Forward foreign exchange contracts 1 - 1
Foreign currency swaps 25,552 5,698 19,854
HTM securities Interest rate swaps 2 2 -
HTM securities comprise securities with fixed or determinable payments and Hedging
fixed maturities, that management has the intention and ability to hold to Bond forwards - - -
maturity. They are initially recognized at fair value plus incremental costs directly
25,555 5,700 19,855
attributable to the acquisition of the security. HTM securities are subsequently
carried at amortized cost using the effective interest method. $ 000’s

The Bank did not hold any HTM securities as at December 31, 2017 December 31, 2016 Positive Negative Net fair
(2016 - nil). fair value fair value value
Trading
3. Derivative financial instruments
Forward foreign exchange contracts 2 - 2
In the ordinary course of business, the Bank uses derivative financial instruments,
Foreign currency swaps 10,347 46,446 (36,099)
primarily over-the-counter interest rate derivatives, forward contracts and
forward currency swaps, to manage its exposure to interest rate and currency Interest rate swaps 164 164 -
fluctuations, as part of the Bank’s asset liability management program; the Hedging
Bank does not undertake proprietary trading positions using derivatives. As per Bond forwards - - -
requirements of its clients, the Bank offers derivative products such as interest 10,513 46,610 (36,097)
rate swaps, foreign currency swaps, etc. to assist them in risk management and
offsets such transactions by entering into derivatives with its Parent or other The following is the summary of outstanding derivative contracts with the
counterparty banks and accordingly it has no proprietary market risk exposure Parent and its subsidiaries, as at December 31:
as a result of entering into these simultaneous contracts. The above instruments $ 000’s
are treated as “trading” derivatives. Further, the Bank manages the interest rate
December 31, 2017 Notional Negative Positive
risk on its secured borrowings by using appropriate hedging instruments, i.e.
amounts fair value fair value
a bond forwards, to lock the interest cost on these liabilities and mitigate the
Trading
impact of rising interest costs from the date that it decides to issue the debt
till the date that the debt is actually issued and classifies such derivatives as Forward foreign exchange contracts - - -
“hedging” derivatives. These hedging instruments have been designated as Foreign currency swaps - - -
the hedging instruments under cash flow hedge relationship to hedge the Interest rate swaps 17,986 2 -
benchmark interest rate risk on the highly probable secured borrowings. Hedging
Bond forwards - - -
The Bank formally documents all hedging relationships and its risk management 17,986 2 -
objective and strategy for undertaking these hedge transactions at inception.

439
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

$ 000’s $ 000’s
December 31, 2016 Notional Negative Positive December 31, 2016 Current Credit Risk-
amounts fair value fair value replacement equivalent weighted
Trading cost amount amount
Forward foreign exchange contracts - - - Trading
Foreign currency swaps - - - Forward foreign exchange 2 123 75
Interest rate swaps 23,860 164 - contracts
Hedging Foreign currency swaps 10,347 32,422 12,917
Bond forwards - - - Interest rate swaps 164 399 399
23,860 164 -
Hedging
The table below shows the current replacement cost, credit equivalent Bond forwards - - -
amount and risk-weighted amount for derivatives as at December 31. Current 10,513 32,944 13,391
replacement cost is the positive fair value of outstanding derivative financial
instruments, which represents the Bank’s derivative credit exposure. Credit In respect of the cash flow hedges undertaken by the Bank, no ineffectiveness
equivalent amount is the current replacement cost for favourable contracts plus was required to be recognized in the profit or loss account for the year (2016 -
an amount for future credit exposure associated with the potential for future nil). Further, during the year a net loss of $114 (2016 - net profit of $2,775) after
credit exposure. Future credit exposure is calculated using a formula prescribed taxes, was recognized in OCI in respect of the effective portion of the hedges.
by OSFI. Risk-weighted amounts represent the credit equivalent amount Based on the expected timing and amounts of the hedged cash flows, pre-
weighted according to the creditworthiness of the counterparty, using factors tax gains of $1,542 (2016 - $1,697) have been deferred in AOCI for derivatives
prescribed by OSFI. designated in cash flow hedges and are expected to be reclassified from the
equity to profit or loss in the following periods::
$ 000’s
December 31, 2017 Current Credit Risk- $ 000’s
replacement equivalent weighted 2017 2016
cost amount amount
Less than 1 year (262) (213)
Trading
Forward foreign exchange 1 3 3 1 - 3 years (947) (632)
contracts 3 - 5 years (333) (852)
Foreign currency swaps 25,552 38,242 13,816 Greater than 5 years - -
Interest rate swaps 2 2 2
Total (gains)/ loss (1,542) (1,697)
Hedging
Bond forwards - - - The Risk Committee of the Bank has permitted transactions such as forex, spot
25,555 38,247 13,821 & forwards, forex swaps, interest rate swaps, and bond short sell for which the
Bank can post/ receive collateral. Collateral eligible for posting to counterparty
or receiving from counterparty will be cash and/ or high quality liquid assets
(HQLA). As at December 31, 2017, the Bank has not received any collateral from
counterparty banks (2016 - $1,104), while the Bank has placed a collateral with a
market value of $724 (2016 - nil).

The Bank has entered into Credit Support Annex (CSA), a standard document executed to mitigate credit risk in the transactions entered between interbank counterparties.
The CSA is a part of the International Swap Dealers Association (ISDA) master agreement between the counterparties. In certain cases, as per the ISDA agreement, the
outstanding transactions may be terminated and a single net amount including pledges is due or payable in settlement of these transactions. Financial assets and financial
liabilities subject to offsetting, enforceable master netting arrangements and similar agreements:

$ 000’s
December 31, 2017 Related amounts not offset on the balance sheet
Types of financial assets Gross amounts Gross amounts of Net amounts of Financial Financial Net amount
of recognized recognized financial financial assets instruments collateral
financial assets liabilities offset on the presented on the
balance sheet balance sheet
Derivatives held for risk management:
Foreign currency swaps 10,968 - 10,968 (3,394) - 7,574
10,968 - 10,968 (3,394) - 7,574

$ 000’s
December 31, 2017 Related amounts not offset on the balance sheet
Types of financial liabilities Gross amounts Gross amounts of Net amounts of Financial Financial Net amount
of recognized recognized financial financial liabilities instruments collateral
financial liabilities assets offset on the presented on the
balance sheet balance sheet
Derivatives held for risk management:
Foreign currency swaps 3,394 - 3,394 (3,394) - -
3,394 - 3,394 (3,394) - -

440
notes to financial statements
(in thousands of Canadian dollars)
forming part of financial statements
December 31, 2016
Types of financial assets Gross amounts
of recognized
financial assets
Derivatives held for risk management:
Foreign currency swaps 4,662
4,662
December 31, 2016
Types of financial liabilities Gross amounts
of recognized
financial liabilities
Derivatives held for risk management:
Foreign currency swaps 14,337
14,337
4. Loans (i) adverse changes in the payment status of borrowers in the portfolio; and
 Loans are measured upon initial recognition at fair value plus directly
attributable incremental transaction costs. Loans are subsequently measured
at amortized cost using the effective interest method, net of allowance for
impairment. The amortized cost is the amount at which a loan is measured at
initial recognition, minus principal repayments, plus or minus the cumulative
amortization using the effective interest method of any difference between the
initial amount recognized and the maturity amount, minus any reduction for
impairment. The carrying amounts of the loan balances represent the Bank's
maximum exposure to credit risk thereon before considering any collateral and
other credit enhancements.
Interest, fee and commission income
Interest income is recognized in the statements of comprehensive income
using the effective interest method. The effective interest rate is the rate that
exactly discounts the estimated future cash payments and receipts through
the expected life of the loan (or, where appropriate, a shorter period) to the
carrying amount of the loan. When calculating the effective interest rate, the
Bank estimates future cash flows considering all contractual terms of the loan,
but not future credit losses. The calculation of the effective interest rate includes
all transaction costs and fees and points paid or received that are an integral
part of the effective interest rate. Transaction costs include incremental costs
that are directly attributable to the acquisition or issue of the loans. The effective
interest rate is established at the time of initial recognition of the loans and is not
revised subsequently, except for variable rate loans.
Loan fees received from commercial clients for term loans, demand loans,
mortgages and operating lines of credit that are considered integral to the
effective interest rate on respective loans are included in the measurement of
the effective interest rate, and thereby recognized into income over the term of
the respective loans.
Non-refundable loan fees received from commercial clients for facilities that are
not approved are recorded in income at the point at which the Bank has no
further performance obligations.
Impairment
At each reporting date, the Bank assesses whether there is objective evidence
that loans are impaired. Loans are classified as impaired and impairment losses
are incurred only if there is objective evidence of impairment as a result of one
or more events that occurred after the initial recognition of the loan (a "loss
event") and that loss event (or events) has an impact on the estimated future
cash flows of the loan that can be reliably estimated.
The criteria that the Bank uses to determine that there is objective evidence of
an impairment loss include:
(a) significant financial difficulty of the issuer or obligor;
(b) a breach of contract, such as a default or delinquency in interest or principal
payments;
(c) the Bank granting to the borrower, on account of the borrower’s financial
difficulty, a concession that the Bank would not otherwise consider;
(d) 
it becomes probable that the borrower will enter bankruptcy or other
financial reorganization; and
(e) 
observable data indicating that there is a measurable decrease in the
estimated future cash flows from a portfolio of loans since the initial
recognition of those loans, although the decrease cannot yet be identified
with the individual loans in the portfolio, including:
Continued
$ 000’s
Related amounts not offset on the balance sheet
Gross amounts of Net amounts of Financial Financial Net amount
recognized financial financial assets instruments collateral
liabilities offset on the presented on the
balance sheet balance sheet
- 4,662 (4,662) - -
- 4,662 (4,662) - -
$ 000’s
Related amounts not offset on the balance sheet
Gross amounts of Net amounts of Financial Financial Net amount
recognized financial financial liabilities instruments collateral
assets offset on the presented on the
balance sheet balance sheet
- 14,337 (4,662) - 9,675
- 14,337 (4,662) - 9,675
(ii) national or local economic conditions that correlate with defaults on the
loans in the portfolio.
An allowance for impairment is maintained at a level that management
considers adequate to absorb identified credit-related losses that are identifiable
for individual loans, as well as losses that have occurred but have not yet been
identified on individual loans in a portfolio.
To ensure that any impairment is identified on a timely basis, the Bank’s
loans are reviewed regularly for their credit quality, taking into consideration
all available information. When substantive information suggests any
significant deterioration in the credit quality of a loan or a portfolio of loans,
the credit or credits are reviewed immediately, even if a regularly scheduled
review is not due.
The Bank considers evidence of impairment for loans and advances both at
an individual asset and collective level. All individually significant loans and
advances are assessed for impairment on an individual basis. All individually
significant loans and advances found not to be specifically impaired are then
collectively assessed for any impairment that has been incurred but not
yet identified at an individual loan level. Loans and advances that are not
individually significant are collectively assessed for impairment by grouping
together loans and advances with similar risk characteristics. In assessing
collective impairment, the Bank uses historical trends of the probability
of default, timing of recoveries and the amount of loss incurred, adjusted
for management’s judgement as to whether current economic and credit
conditions are such that the actual losses are likely to be greater or less than
suggested by historical loss modeling.
Default rates, loss rates and the expected timing of future recoveries are
benchmarked against actual outcomes to ensure that they remain appropriate.
Impairment losses on loans and advances are measured as the difference
between the carrying amount of the financial asset and the present value of
estimated future cash flows discounted at the asset’s original effective interest
rate. Impairment losses are recognized in profit or loss and reflected in an
allowance account against loans and advances. Interest on impaired assets
continues to be recognized although an allowance may be established to the
extent it may not be recovered. When a subsequent event causes the amount
of impairment loss to decrease, the decrease in impairment loss is reversed
through profit or loss. The Bank writes off loans and advances when they are
determined to be uncollectible.
Loans for which interest and principal is contractually past due 90 days are
generally determined to be impaired, unless management determines that
the loan is fully secured, in the process of collection, and the collection efforts
are reasonably expected to result in either payment of the loan or restoring
it to a current status within 180 days from the date payment has become
contractually in arrears. An exception to these conditions is made for not more
than 365 days from the date a loan is contractually in arrears where the loan is
guaranteed or insured by a Canadian Government (federal or provincial) or a
Canadian Government agency, the validity of the claim is not in dispute and,
as a consequence, the lender has reasonable assurance of collection of the full
principal and interest, including full compensation for any overdue payments
calculated at the loan's contractual interest rate.
The Bank follows a two-tier risk rating system for credits, consisting of a
borrower/obligor risk rating ("BRR") and a transaction risk rating ("TRR").
With respect to commercial & corporate loans, commercial mortgages as
defined in its Corporate and Commercial Credit and Recovery Policy ("CCCRP")
and insured residential mortgages, borrowers/obligors are risk rated using
441
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

general corporate or sector specific scorecards by assigning a fourteen grade The composition of the loan portfolio as at December 31 is as follows:
classification system (1 up to 8) to reflect the probability of default. The TRR $ 000’s
is then determined by adjusting the BRR to reflect collateral assessment as
December 31, 2017 Gross Collective Specific Deferred Net
per the loss given default framework and the TRR framework. Credits with a amount allowance allowance loan fees amount
BRR 1 through 4C are considered "Satisfactory", BRR 5 considered "Especially
Commercial & corporate
mentioned" and BRR 6 treated as "Substandard". The following table presents
loans and commercial
the gross loans outstanding as at December 31, that were neither past due nor mortgages 2,368,376 (15,331) (179,976) (9,816) 2,163,253
impaired:
Conventional residential
mortgages 253,777 (757) - - 253,020
$ 000’s
Insured residential
2017 2016
mortgages 187,875 (3) - - 187,872
Borrower Risk Rating categories
Securitized residential
Satisfactory (RR 1 through 4) 5,063,970 5,368,200 mortgages 2,924,932 (53) - - 2,924,879
Especially mentioned (RR 5) 184,878 316,644 Personal 40,510 (61) (46) - 40,403
Substandard (RR 6) 55,798 14,022 5,775,470 (16,205) (180,022) (9,816) 5,569,427
5,304,646 5,698,866 Undrawn commitments
and other credit
Further, as defined in the Retail Credit and Recovery Policy (“RCRP”), with instruments
respect to retail loans (incl. credit card exposures) and conventional residential Commercial@ 656,223 (96) - - 656,127
mortgages, each borrower is classified into one of the four risk score buckets –
Low risk (‘BRR A’), Medium risk (‘BRR B’), High risk (‘BRR C’) and Default (‘BRR Personal 120,480 - - - 120,480
D’) – to reflect the probability of default. The TRR is then determined by adjusting 776,703 (96) - - 776,607
the borrower/obligor risk rating to reflect collateral assessment as per LGD and
TRR framework. The following table presents the gross loans outstanding as at
December 31, that were neither past due nor impaired: $ 000’s
$ 000’s December 31, 2016 Gross Collective Specific Deferred Net
amount allowance allowance loan fees amount
2017 2016
Commercial &
Borrower Risk Rating categories
corporate loans and
Low (RR A) 190,926 4,144 commercial mortgages 2,407,143 (13,374) (215,377) (9,355) 2,169,037
Medium (RR B) 53,843 452
Conventional
High (RR C) 12,362 - residential mortgages 2,518 (19) - - 2,499
257,131 4,596 Insured residential
For commercial & corporate loans, commercial mortgages and residential mortgages 434,641 (34) - - 434,607
mortgages, an exposure rated BRR 7 is closely monitored. Exposures rated Securitized residential
BRR 8 are internally classified as “Default and impaired” where losses are mortgages 3,093,259 (77) - - 3,093,182
identifiable on an individual basis with a specific allowance established against
each exposure. As at December 31, 2017, gross loans outstanding in BRR 7 and Personal 48,836 (16) (15) - 48,805
BRR 8 amounted to $194,915 (2016 - $258,487). For the year ended December 5,986,397 (13,520) (215,392) (9,355) 5,748,130
31, 2017, an amount of $1,669 (2016 - $7,101) is included as interest income Undrawn commitments
from loans relating to such exposures. In respect of retail loans (incl. credit and other credit
card exposures) as at December 31, 2017, gross loans outstanding in BRR D instruments
amounted to $46 (2016 - $15).
Commercial@ 575,412 (26) - - 575,386
Based on an assessment of these loans, the following table indicates the amount
of specific provisions created in respect of these loans: Personal 77,990 - - - 77,990
$ 000’s 653,402 (26) - - 653,376
2017 2016 @ provision included in accounts payable and other liabilities.
Gross Specific Gross Specific Unfunded commitments can be drawn at any time during the term of the facility
Loans allowance loans allowance and the Bank manages its liquidity based on expected withdrawals.
Personal loans 46 46 15 15
Reclassified Financial assets - available for sale securities reclassified to loans
Commercial & corporate
loans and commercial During the year ended December 31, 2013, the Bank had reclassified its
mortgages 194,915 179,976 233,532 215,377 corporate bonds from AFS securities classification to Loans classification. The
reclassified securities met the definition of loans and receivables (“L&R”) at
194,961 180,022 233,547 215,392
the date of reclassification and the Bank intends to hold these securities for
foreseeable future. The reclassifications were made with effect from December
The following table presents the carrying value of loans as at December 31, that
1, 2013 at fair value at that date. The net unrealized fair value gains recognized
were past due but not classified as impaired:
in the OCI are being amortized into interest income using the effective interest
$ 000’s
rate of the instrument reclassified.
2017 2016
The following table presents the details in respect of the reclassified bonds at
Commercial & Residential Commercial & Residential the reclassification date:
corporate loans & securitized corporate loans & securitized
and commercial residential and commercial residential $ 000’s
mortgages mortgages mortgages mortgages 2013
and personal and personal
loans loans Carrying value 532,093
1 - 30 days - 7,240 - 11,244 Unrealized fair value gains in OCI 10,599
31 - 60 days - 243 - 2,124 Effective interest rates:
61 - 90 days - 292 - 208 - Upper range 7.3%
Above 90 days - 1,141 - 1,502 - Lower range 2.8%
- 8,916 - 15,078 Expected recoverable cash flows 668,698

442
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

The following table presents the carrying and fair values for the reclassified As at December 31, 2016, the Bank held loans, net of allowances, denominated
bonds as at December 31: in U.S. dollars and Euros of $1,285,115 (U.S. $957,113) and $18,355 (€12,955)
respectively.
$ 000’s
At December 31, 2017, $4,999,386 (2016 - $5,359,191) of loans are expected to
2017 2016 be recovered more than 12 months after the reporting date.
Carrying Fair Carrying Fair An analysis of the Bank’s loan portfolio, net of allowances for impairment and
value value value value deferred loan fees, by category and by location of ultimate risk as at December
31, is as follows:
AFS securities
57,172 57,779 173,302 173,490 $ 000’s
reclassified to loans
2017 2016
The table below shows the pre-tax amounts that would have been recognized in Canada:
profit or loss and OCI if the reclassification had not been made: Commercial and corporate loans and
commercial mortgages 1,532,042 1,598,354
$ 000’s
2017 2016 Conventional residential mortgages 253,777 2,518
Profit or OCI Profit or OCI Insured residential mortgages 187,875 434,641
loss loss Securitized residential mortgages 2,924,932 3,093,259
Interest income - - - - Personal 40,510 48,836
Net increase/ (decrease) 4,939,136 5,177,608
in fair value - 975 - 8,056 Allowance for impairment (16,090) (37,820)
Amortization of 4,923,046 5,139,788
net unrealized gain India:
deferred in OCI - 76 - 1,948
Commercial and corporate loans and
- 1,051 - 10,004 commercial mortgages 195,692 215,641
Allowance for impairment (178,924) (189,653)
The table below shows the amount of pre-tax contribution recognized in profit or
loss and OCI in respect of the financial assets which have been reclassified: 16,768 25,988
Other:
$ 000’s Commercial and corporate loans and
2017 2016 commercial mortgages 630,826 583,793
Profit or OCI Profit or OCI
Allowance for impairment (1,213) (1,439)
loss loss
Interest income @ 3,527 - 8,362 - 629,613 582,354
Provision for credit 5,569,427 5,748,130
losses, net 499 - 2,276 -
The total fair value of loans at December 31, 2017 is $5,516,336 (2016 -
Amortization of $5,698,235), of which the fair value of loans relating to Canada is $4,871,221
net unrealized gain (2016 - $5,091,158), India is $15,503 (2016 - $24,723) and other geographies is
deferred in OCI - (76) - (1,948)
$629,612 (2016 - $582,354).
4,026 (76) 10,638 (1,948)
The following table summarizes industry wise distribution of the Bank’s loan
@ included as interest income on loans.
portfolio, net of allowances for impairment and deferred loan fees, by category
Impairment analysis for debt instruments required by IAS 39 continues even of borrower as at December 31:
after reclassification and impairment losses, if any, are taken as a charge to the
profit or loss. While AFS securities are also assessed for impairment under IAS $ 000’s
39, per the Bank’s policy this assessment is only carried out on an individual 2017 2016
security basis and not on a collective basis. For instruments reclassified to L&R, Residential mortgages 3,366,584 3,530,418
collective impairment charge in profit or loss is recorded for securities that
Personal loans 40,510 48,836
are not individually impaired. If a reclassified financial asset subsequently is
assessed as being individually impaired, then the gain or loss that was previously 3,407,094 3,579,254
recognized in OCI is reclassified to profit or loss immediately on a proportionate Allowance for loan losses (920) (161)
basis. Net retail loans 3,406,174 3,579,093
Undrawn commitments and other contingent liabilities include an unused portion Accommodation and food services 112,252 77,750
of commercial and personal mortgages and lines of credit, letters of credit facility Admin & Support, Waste Mgmt and Remediation 136,515 142,600
to commercial clients, import bills for collection and standby letters of credit and Agriculture, forestry, fishing and hunting 12,404 -
bank guarantees. Arts, entertainment and recreation 50,017 37,901
During the year ended December 31, 2017, loan balances amounting to $23,081 Construction 154,460 160,920
were written off (2016 - nil). The following is a summary of the changes in the Finance & Insurance 28,032 2,589
allowance for impairment for the year ended December 31:
General merchandise stores 10,297 -
$ 000’s Health care and social assistance 37,909 39,134
2017 2016 Information and Cultural Industries 218,557 228,487
Collective Specific Total Total Manufacturing 528,514 671,072
Mining, Quarrying and Oil and Gas Extraction 124,584 239,384
Balance, beginning
13,520 215,392 228,912 103,716 Professional, Scientific, & Technical Services 114,323 103,643
of year
Pipeline transportation 13,500 -
Provision for credit
1,592 (3,211) (1,619) 121,044 Real Estate and Rental and Leasing 262,868 149,315
losses @
Retail Trade 188,368 150,895
Effect of discounting 1,380 - 1,380 4,152
Scientific and technical consulting services 5,018 -
Foreign exchange Transportation & Warehousing 117,225 119,863
(287) (9,078) (9,365) -
movements
Utilities 173,551 174,009
Write-offs - (23,081) (23,081) - Wholesale Trade 77,598 108,095
Balance, end of year 16,205 180,022 196,227 228,912 2,365,992 2,405,657
@ excludes provision of $70 (2016 - reversal of $5) during the year on other credit Deferred loan fees and premium (7,432) (7,869)
instruments. Allowance for loan losses (195,307) (228,751)
As at December 31, 2017, the Bank held loans, net of allowances, denominated Net corporate & commercial loans 2,163,253 2,169,037
in U.S. dollars and Euros of $1,256,210 (U.S. $1,001,363) and $13,330 (€ 8,856) Total loans and acceptances net of allowance for
respectively. 5,569,427 5,748,130
loan losses

443
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

5. Property and equipment 7. Deposits
Property and equipment are carried at cost less accumulated depreciation, Deposits are measured upon initial recognition at their fair value less directly
which is provided by using the straight-line method over the estimated useful attributable incremental transaction costs. Deposits are subsequently measured
lives of the assets. The estimated useful lives, residual values and depreciation at amortized cost using the effective interest method. Deposit balances for
method are reviewed annually, with the effect of any changes in estimate current, savings and term deposits are shown below:
accounted on a prospective basis.
$ 000’s $ 000’s
2017 2016 Payable on
Useful Cost Accumulated Net book Net book demand
life depreciation value value December 31, 2017 Interest Non- Payable Payable Total
Computer hardware bearing interest after on fixed
and software
3 years 2,041 1,685 356 450 bearing notice date
Furniture, fixtures and Personal 181,327 - 391,343 262,295 834,965
equipment
5 years 3,617 3,229 388 546
Commercial 32,744 64,140 43,603 10,693 151,180
Leasehold Lease Broker:
improvements 2,777 2,446 331 295
term Personal - - 108,612 1,454,533 1,563,145
8,435 7,360 1,075 1,291 Commercial - - - - -
The movement in balances of property and equipment was as follows: 214,071 64,140 543,558 1,727,521 2,549,290
$ 000’s
Computer Furniture, Leasehold Total $ 000’s
hardware fixtures and improve- Payable on
and software equipment ments demand
Acquisition cost December 31, 2016 Interest Non- Payable Payable Total
Opening balance at bearing interest after on fixed
bearing notice date
January 1, 2017 1,896 3,535 2,644 8,075
Personal 102,039 - 399,485 293,408 794,932
Acquisitions 146 105 133 384
Commercial 35,933 86,322 41,879 14,206 178,340
Disposals - - - -
Broker:
Assets written off (1) (23) - (24)
Personal - - 171,129 1,418,830 1,589,959
Closing balance at
2,041 3,617 2,777 8,435 Commercial - - - - -
December 31, 2017 137,972 86,322 612,493 1,726,444 2,563,231

$ 000’s The maturity profile of deposits payable on fixed date, as at December 31, is as
Computer Furniture, Leasehold Total follows:
hardware fixtures and improve- $ 000’s
and software equipment ments
2017 2016
Accumulated depreciation
and impairment losses Under 1 year 720,182 620,168
Opening balance at January 1 - 5 years 1,007,339 1,106,276
1, 2017 (1,446) (2,989) (2,349) (6,784) Total 1,727,522 1,726,444
Depreciation (240) (262) (97) (599)
Assets written off 1 22 - 23 The Bank sources certain deposits through the use of brokers. Upon the
Closing balance at (1,685) (3,229) (2,446) (7,360) placement of a deposit with the Bank, the broker earns a commission, which
December 31, 2017 the Bank amortizes over the life of the related deposit. As at December 31, 2017,
the Bank had unamortized broker commissions on deposits of $6,758 (2016 -
$ 000’s $6,578) included in the above balances. There is no single depositor in excess
Computer Furniture, Leasehold Total of 0.3% (2016 - 0.3%) of the total liabilities.
hardware fixtures and improve-
8. Accounts payable and other liabilities
and software equipment ments
Acquisition cost $ 000’s
Opening balance at December 31, December 31,
January 1, 2016 1,445 3,523 2,540 7,508 2017 2016
Acquisitions 474 35 112 621
Unappropriated loan repayment 17,876 1,166
Disposals - - - -
Assets written off (23) (23) (8) (54) Accounts payable 11,736 9,864
Closing balance at Deferred income 711 722
1,896 3,535 2,644 8,075
December 31, 2016 Other 3,683 87
34,006 11,839
$ 000’s
Computer Furniture, Leasehold Total 9. Foreign currency translation
hardware fixtures and improve- Monetary assets and liabilities denominated in foreign currencies are translated
and software equipment ments into Canadian dollars using the Bank of Canada exchange rates at the reporting
Accumulated depreciation date. Revenue and expense amounts denominated in foreign currencies are
and impairment losses translated using average monthly exchange rates. Realized and unrealized
Opening balance at gains and losses resulting from translation are included in the statements of
January 1, 2016 (1,252) (2,732) (2,279) (6,263) comprehensive income under “Other Income, Foreign exchange gain, net”.
Depreciation (217) (280) (78) (575)
Assets written off 23 23 8 54 10. Securitization of mortgages
Closing balance at (1,446) (2,989) (2,349) (6,784) The Bank has entered into securitization arrangements in respect of its originated
December 31, 2016
and purchased (originated by third parties) mortgages, to issue National
There were no capitalized borrowing costs related to the acquisitions of property Housing Act Mortgage-backed Securities (“NHA-MBS”) and also participates
and equipment for the years ended December 31, 2017 and 2016. in Canada Mortgage Bonds (“CMB”) program as a seller. The NHA MBSs are
6. Other assets backed by pools of amortizing residential mortgages insured by the Canada
Mortgage and Housing Corporation (“CMHC”) or approved third party insurers.
$ 000’s The CMB, guaranteed by CMHC, is a semi-annual coupon, bullet-maturity bond.
December December CMBs are issued by a special purpose trust, known as Canada Housing Trust.
31, 2017 31, 2016
For mortgages securitized and sold into the CMB program, the Bank retains
Prepaid expenses, deposits and accounts receivable 23,829 21,436
substantially all the risks and rewards, comprising primarily prepayment
Receivable on account of Mortgage-backed risk related to ownership of these mortgages and hence, these mortgage
securities ("MBS") pool collections 2,446 1,416 securitizations do not qualify for derecognition accounting under International
Advance taxes paid 484 15,604 Accounting Standard 39, Financial Instruments: Recognition and Measurement
Others 467 252 (“IAS 39”). For mortgages that are securitized and the resulting MBS from which
27,226 38,708 are sold outside of the CMB program, the Bank has determined that it neither

444
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

transfers nor retains substantially all the risks and rewards associated with the The Bank also provides various operations and other support services
ownership of these mortgages. However, the Bank retains control over these to the New York Branch of ICICI Bank Limited pursuant to service level
mortgages and hence, it continues to recognize the mortgages securitized. For agreements. During the year ended December 31, 2017, the Bank has
all mortgage securitizations, the amounts received through securitization and earned a revenue of $229 (2016 - $303), net of taxes, of which $18 (2016
sale are recognized as “Secured borrowings”. - $59) was receivable as at December 31, 2017. During the year, the Bank
As required under the CMB program, the Bank, as an issuer, has undertaken has provided specified correspondent banking services to the parent bank
to remit monthly to the Central Payor and Transfer Agent (the “CPTA”) the and has earned a revenue of $4 (2016 - $2). Deposits from Banks include
payments of principal and interest accrued and due on the mortgage loans in an amount of $1,045 (2016 - $328) maintained by the parent bank in the
the pools. The Bank has also undertaken to make the payments to the CPTA on correspondent bank account.
the due dates even if the corresponding amounts have not been received and In the normal course of business, the Bank enters into trade arrangements
collected by the Bank in respect of the pools. to participate in offering stand-by letters of credit facilities based on counter-
The following table presents the movement in the gross balance of securitized guarantees received or offered to the New York Branch of the Parent. These
residential mortgages during the year ended December 31: transactions fall within the purview of "permitted transactions" under the
Bank Act. As at December 31, 2017, there are no trade or other advances
$ 000’s which were supported by a letter of undertaking issued by the Parent on
2017 2016 behalf of its clients in the normal course of business (2016 - nil). Further,
as at December 31, 2017, the Bank has issued performance guarantees of
Balance, beginning of year 3,093,259 2,919,901 $12,706 (2016 - $7,705) for which it has received counter-guarantees from
Add: Mortgage pools securitized 656,597 971,926 the Parent. For the year ended December 31, 2017, the Bank has earned a
3,749,856 3,891,827 net income of $9 (2016 - $12) on such transactions and an amount of $7
Less: Repayment of mortgages in the pool 815,061 788,034 (2016 - $9) is receivable.
Amortization of premium 9,863 10,534
(b) Key management personnel
Balance, end of year @ 2,924,932 3,093,259
 Key management personnel (“KMP”) are those persons who have the
@ excludes provision of $53 (2016 - $77) on securitized residential mortgages. authority and responsibility for planning, directing and controlling the
At December 31, 2017, $2,547,044 (2016 - $2,841,916) of securitized mortgages activities of the Bank, directly or indirectly, and comprise the directors of
are expected to be recovered more than 12 months after the reporting date. the Bank, the Chief Executive Officer (“CEO”) and all direct reports of the
CEO. The definition of KMP in IAS 24 Related Party Disclosures, specifies a
The following table presents the movement in the secured borrowings balance
role and is not limited to a person. KMP include directors (both executive
during the year ended December 31:
and non-executive) and other members of the management team with
$ 000’s significant authority and responsibility for planning, directing and controlling
the Bank’s activities.
2017 2016
The following table summarizes the compensation paid to the KMP in
Balance, beginning of year 3,054,246 2,881,777
respect of short-term and other post-employment benefits, during the year
Add: Proceeds of MBS/ CMB issued, net of pooling ended December 31:
fee and expenses 646,622 954,288
Amortization of pool fees and expenses 6,000 6,215 $ 000’s
3,706,868 3,842,280 2017 2016
Less: Repayment of borrowings 815,061 788,034 Short-term employee benefits 2,732 2,279
Balance, end of year 2,891,807 3,054,246 Post-employment benefits 164 160
2,896 2,439
The maturity profile of the pools of secured borrowings as at December 31, is as
follows: In addition, personnel expenses include the cost of stock options granted
to employees of the Bank, primarily KMP, under the Employee Stock Option
$ 000’s Plan of the Parent. During the year ended December 31, 2017, an amount
2017 2016 of $1,273 (2016 - $1,228) has been expensed as employee benefits and
Under 1 year 351,423 220,082 recorded as paid-in-capital.
1 - 5 years 2,540,384 2,834,164 12. Share capital
Total 2,891,807 3,054,246 The Bank is authorized to issue an unlimited number of common shares without par
value and an unlimited number of non-voting preferred shares without par value.
The following table provides the fair value of the assets, the associated liabilities
and the net position in respect of the mortgage securitizations that do not qualify December 31, 2017 December 31, 2016
for derecognition: Number Amount Number Amount
of Shares $ in 000's of shares $ in 000's
$ 000’s Common shares 839,500,000 569,500 839,500,000 634,500
2017 2016 Preferred shares:
Fair value of securitized residential mortgage assets 2,865,162 3,047,033 Series A - - 10,000,000 10,000
Fair value of associated secured borrowings 2,822,677 3,001,027 Series B - - 509,280 12,732
Fair value of net position 42,485 46,006 Series C - - 600,000 15,000
Series D - - 716,288 17,907
11. Related party transactions - 55,639
(a) Parent and other related parties 
The Bank had issued the common and preferred shares shown above for cash
The Bank incurred no interest expense related to short-term borrowings consideration to the Parent. During the year ended December 31, 2017, the Bank
from the Parent or its subsidiaries during the year ended December 31, repatriated in cash, by way of ‘stated capital reduction’, an amount of $65,000 (2016 -
2017 (2016 - nil). Further, during the year ended December 31, 2017, no $50,000) to its common shareholders’ after receiving necessary approvals from OSFI.
dividend (2016 - nil) was received on the common share investment of $85
[£50] (2016 - $83) in ICICI Bank UK PLC. During the year ended December 31, 2017, the Bank redeemed its entire preference
share capital of $55,639 (i.e. 10,000,000 shares of “Series A” totaling $10,000, 509,280
The Bank transacts with the Parent in the normal course of business for shares of “Series B” totaling $12,732, 600,000 shares of “Series C” totaling $15,000
various treasury products, and for various services pursuant to service and 716,288 shares of “Series D” totaling $17,907) after receiving OSFI’s approval.
level agreements, including legal, call center, information technology
system development and maintenance, treasury control and services group During the year ended December 31, 2016, the Bank redeemed $37,093 of its
("TCSG"), branch operations, credit card processing and monitoring, internet preference share capital (i.e. the entire 1,200,000 shares of “Series E” totaling $30,000
banking development and maintenance and internal audit services. For the and 283,712 shares of “Series D” totaling $7,093) after receiving OSFI’s approval.
year ended December 31, 2017, the Bank incurred costs of $3,468 (2016 No dividends have been paid on common shares and on preferred shares during
- $2,442) related to these services, of which $802 (2016 - $630) remains the year ended December 31, 2017. During the year ended December 31, 2016, the
payable at the year-end. These transactions are in the normal course of Bank has declared and paid a dividend of $0.02 per share amounting to $15,000 on its
operations and are pursuant to formal agreements between the parties. common shares and a total of $3,340 was declared and paid on the preferred shares
Note 3 provides a summary of outstanding derivative contracts transacted ($0.01 per share on Series A preferred shares, $1.75 per share on Series B and Series
with related parties. C preferred shares and $1.81 per share on Series D preferred shares).

445
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

During the year ended December 31, 2017, an amount of $1,273 (2016 - $1,228) has been 17. Other expenses
expensed as employee benefits and recorded as paid-in capital. This amount represents
the cost of the stock options granted to the employees of the Bank under the Employee $ 000’s
Stock Option Plan of the Parent. 2017 2016
Call center and outsourcing 4,362 3,335
13. Income taxes
 Income tax expense comprises current and deferred tax. Current tax and Professional fees 3,340 2,671
deferred tax are recognized in profit or loss except, to the extent that they relate General and administrative 2,890 2,546
to items recognized directly in equity or in OCI. Occupancy 2,181 2,152
The Bank’s income taxes for the year ended December 31, are summarized as Data processing fees 1,658 1,487
follows:
Marketing and business development 761 549
$ 000’s Travel, moving and entertainment 750 753
2017 2016 Communication 493 487
Current income tax expense/ (recovery) 14,603 (10,194) Capital and other taxes 5 10
Deferred tax expense/ (recovery) 157 (2,550) 16,440 13,990
14,760 (12,744)
18. Employee future benefits
Current tax is the expected tax payable or receivable on the taxable income  The Bank has a defined contribution group retirement savings plan for its
or loss for the year, using tax rates enacted or substantively enacted at the employees. Under the plan, employees are allowed to contribute a portion of
reporting date, and any adjustment to tax payable in respect of previous years. their annual salary to the plan and the Bank matches such contributions up to
5% of the employee’s annual salary. The amount of the benefit expense for
The following table reconciles income taxes at the combined Canadian federal the year ended December 31, 2017 was $426 (2016 - $417) and is included in
and provincial statutory rate with the income tax expense in the financial personnel expenses in the statements of comprehensive income.
statements as at December 31:
19. Financial instruments
$ 000’s
IFRS 13 defines fair value as the price that would be received to sell an asset or
2017 2016 paid to transfer a liability in an orderly transaction between market participants
Income tax expense/ (recovery) at statutory tax rate 14,313 (13,072) at the measurement date (i.e. an exit price). As a result, an entity’s intention
to hold an asset or to settle or otherwise fulfil a liability is not relevant when
Permanent differences 358 348
measuring fair value.
Other 89 (20)
IFRS 13 describes a fair value hierarchy that categorizes into three levels
Income taxes 14,760 (12,744) the inputs to valuation techniques used to measure fair value. The fair value
hierarchy gives the highest priority to quoted prices (unadjusted) in active
Deferred tax asset/ liability is recognized in respect of temporary differences
between the carrying amounts of assets and liabilities for financial reporting markets for identical assets or liabilities (Level 1 inputs) and the lowest priority
purposes and the amounts used for taxation purposes. Deferred tax is measured to unobservable inputs (Level 3 inputs). The Bank measures fair values using the
at the tax rates that are expected to be applied to the temporary differences following fair value hierarchy, which reflects the significance of the inputs used
based on management’s assumptions regarding the expected timing of the in making the measurements:
reversal and on the laws that have been enacted or substantively enacted by the 
Level 1 – inputs that are quoted market prices (unadjusted) in active markets for
reporting date. Deferred tax assets are reviewed at each reporting date and are identical instruments.
reduced to the extent that it is no longer probable that the related tax benefit will
be realized. L
 evel 2 – inputs other than quoted prices included within Level 1 that are
observable, either directly (i.e. as prices) or indirectly (i.e. derived from prices
Significant components of the Bank’s deferred tax asset/(liability), as at
for the asset or liability). This category includes instruments valued using:
December 31 are as follows:
quoted market prices in active markets for similar instruments; quoted prices
$ 000’s for identical or similar instruments in markets that are considered less than
active; or other valuation techniques in which all significant inputs are directly
2017 2016
or indirectly observable from market data.
Allowance for impairment 9,090 9,297
L
 evel 3 – one or more significant inputs used in a valuation technique are
Deferred loan & trade fees 2,601 2,479
unobservable in determining fair values of the instruments. Valuation is based
Property and equipment 205 228 on valuation techniques or models which use significant market unobservable
Deferred broker commission (3,012) (2,961) inputs or assumptions. Financial instruments are considered Level 3 when
Other items 31 29 their values are determined using pricing models, discounted cash flow
methodologies or similar techniques and at least one significant model
Net deferred tax asset 8,915 9,072
assumption or input is unobservable and when determination of the fair value
14. Fee and commission income requires significant management judgement or estimation.
As at December 31, the estimated fair values of cash & deposits with banks,
$ 000’s
banker’s acceptances, variable rate loans & mortgages, other assets, demand
2017 2016 deposits and accounts payable & other liabilities approximate their book values.
Commercial loan fees 2,810 2,371 The table below analyses financial instruments measured at fair value on a
Trade finance, other service fees and charges 6,580 4,766 recurring or non-recurring basis by the level in the fair value hierarchy into
which the fair value measurement is categorized. The amounts are based on the
9,390 7,137 values recognized in the statement of financial position:
15. Net trading income $ 000’s
December 31, 2017 Level 1 Level 2 Level 3 Total
$ 000’s
Securities 431,652 - - 431,652
2017 2016
Derivative assets1 1 25,554 - 25,555
Gain on derivative transactions (87) 21
Derivative liabilities1 - 5,700 - 5,700
(87) 21
$ 000’s
16. Other income
December 31, 2016 Level 1 Level 2 Level 3 Total
$ 000’s
Securities 442,112 - - 442,112
2017 2016
Derivative assets1 - 10,513 - 10,513
Realized gain/ (loss) on sale of non-trading securities 1,488 8,746
Derivative liabilities1 - 46,610 - 46,610
Foreign exchange gain, net (1,482) 1,776

1
Before deducting CVA of $3 (2016 - $8) on positive fair values and $8 (2016 - $56) on
Other 149 4 negative fair values.
155 10,526

446
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

The book values, i.e., amortized cost, and fair values for fixed rate loans and mortgages, deposits and secured borrowings at December 31, are as follows:

$ 000’s $ 000’s
2017 Book Fair Fair value Level 1 Level 2 Level 3 2016 Book Fair Fair value Level 1 Level 2 Level 3
value value over/ value over/
value
(under) (under)
book value book value
Fixed-rate loans and Fixed-rate loans and
mortgages 3,195,314 3,142,223 (53,091) - 566,577 2,575,646 mortgages 3,304,007 3,254,112 (49,895) - 582,986 2,671,126
Fixed-rate deposits 1,727,522 1,754,827 27,305 - - 1,754,827 Fixed-rate deposits 1,726,444 1,752,543 26,099 - - 1,752,543
Secured borrowings 2,112,907 2,043,777 (69,130) - - 2,043,777
Secured borrowings 2,178,554 2,125,335 (53,219) - - 2,125,335

Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities:
$ 000’s
December 31, 2017 December 31, 2016
Fair value Fair value Amortised Total Fair Fair value Fair value Amortised Total Fair
held for through cost carrying value held for through cost carrying value
trading OCI amount trading OCI amount
Financial assets
Cash and deposits - - 43,818 43,818 43,818 - - 81,884 81,884 81,884
Derivative assets 25,552 - - 25,552 25,555 10,505 - - 10,505 10,513
Securities - 481,621 - 481,621 481,621 - 552,067 - 552,067 552,067
Loans, net - - 5,569,427 5,569,427 5,516,336 - - 5,748,130 5,748,130 5,698,235
Other assets - - 28,843 28,843 28,843 - - 37,310 37,310 37,310
Total 25,552 481,621 5,642,088 6,149,261 6,096,173 10,505 552,067 5,867,324 6,429,896 6,380,009
Financial liabilities
Derivative liabilities 5,692 - - 5,692 5,700 46,554 - - 46,554 46,610
Deposits - - 2,550,483 2,550,483 2,577,788 - - 2,563,637 2,563,637 2,589,736
Accounts payable and
other liabilities - - 61,241 61,241 61,241 - - 43,877 43,877 43,877
Secured borrowings - - 2,891,807 2,891,807 2,822,677 - - 3,054,246 3,054,246 3,001,027
Total 5,692 - 5,503,531 5,509,223 5,467,406 46,554 - 5,661,760 5,708,314 5,681,250

20. Contractual repricing and maturity schedule

The following table summarizes the carrying amounts of assets, liabilities and equity, and derivative instrument notional amounts in order to arrive at the Bank’s interest
rate gap based on the earlier of contractual repricing or maturity dates:
$ 000’s
December 31, 2017 Floating rate Under 3 3 to 6 6 to 12 1 to 5 Over Non-interest Total
months months months years 5 years sensitive
Assets
Cash and deposits - 41,777 - - - - 2,041 43,818
Derivative assets - 25,552 - - - - - 25,552
Securities - 85,067 30,101 50,425 316,028 - - 481,621
Loans, net 2,374,113 69,597 98,285 170,577 2,802,504 54,351 - 5,569,427
Property and equipment, net - - - - - - 1,075 1,075
Other assets - - - - - - 44,444 44,444
Total 2,374,113 221,993 128,386 221,002 3,118,532 54,351 47,560 6,165,937

Liabilities and Shareholders' Equity

Derivative liabilities - 5,692 - - - - - 5,692
Deposits 822,961 101,277 270,712 348,194 1,007,339 - - 2,550,483
Accounts payable and
other liabilities - - - - - - 61,241 61,241
Secured borrowings 778,900 38,138 92,961 125,973 1,855,835 - - 2,891,807
Shareholders' equity - - - - - - 656,714 656,714
Total 1,601,861 145,107 363,673 474,167 2,863,174 - 717,955 6,165,937

On-balance sheet gap 772,252 76,886 (235,287) (253,165) 255,358 54,351 (670,395) -
Off-balance sheet gap - (83,781) 68,361 15,420 - - - -
Interest rate sensitivity gap
based on contractual repricing 772,252 (6,895) (166,926) (237,745) 255,358 54,351 (670,395) -
Cumulative gap 772,252 765,357 598,431 360,686 616,044 670,395 - -

447
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

$ 000’s
December 31, 2016 Floating rate Under 3 3 to 6 6 to 1 to Over Non-interest Total
months months 12 months 5 years 5 years sensitive
Assets
Cash and deposits - 80,286 - - - - 1,598 81,884
Derivative assets - 10,505 - - - - - 10,505
Securities - 309,818 192,500 29,821 19,928 - - 552,067
Loans, net 2,444,123 10,187 69,538 126,498 3,046,334 51,450 - 5,748,130
Property and equipment, net - - - - - - 1,291 1,291
Other assets - - - - - - 55,362 55,362
Total 2,444,123 410,796 262,038 156,319 3,066,262 51,450 58,251 6,449,239

Liabilities and Shareholders' Equity

Derivative liabilities - 46,554 - - - - - 46,554
Deposits 837,193 56,626 169,053 394,489 1,106,276 - - 2,563,637
Accounts payable and
other liabilities - - - - - - 43,877 43,877
Secured borrowings 875,692 2,744 64,797 86,571 2,024,442 - - 3,054,246
Shareholders' equity - - - - - - 740,925 740,925
Total 1,712,885 105,924 233,850 481,060 3,130,718 - 784,802 6,449,239
On-balance sheet gap 731,238 304,872 28,188 (324,741) (64,456) 51,450 (726,551) -
Off-balance sheet gap - (64,241) (28,470) 92,711 - - - -
Interest rate sensitivity gap
based on contractual repricing 731,238 240,631 (282) (232,030) (64,456) 51,450 (726,551) -
Cumulative gap 731,238 971,869 971,587 739,557 675,101 726,551 - -

The following table details the undiscounted future cash flows on the Bank’s The gross outstanding amount of guarantees provided to its customers and
deposit liability and secured borrowings as at December 31: other third parties as at December 31 are as follows:
$ 000’s $ 000’s
2017 2016 2017 2016
Up to 1 to 5 Up to 1 to 5 BG 91,729 65,528
1 year years 1 year years
LC - -
Deposits 1,599,986 1,048,552 1,518,318 1,146,179
SBLC 51 728
Secured borrowing 938,632 2,451,278 859,150 2,756,964
Total 91,780 66,256
Total 2,538,618 3,499,830 2,377,468 3,903,143
The maturity profile of the gross outstanding amount of guarantees as at
21. Guarantees and commitments December 31 are presented below; however, the Bank may be called upon
 Undrawn commitments and guarantees include the unused portion of to honour the commitment at any point before the maturity date, based on
commercial/personal lines of credit, letters of credit facility to commercial fulfillment of the terms and conditions of the guarantee:
clients, import bills for collection, standby letters of credit and bank guarantees. $ 000’s
Trade guarantees 2017 BG LC SBLC Total
As a part of its trade finance banking activities, the Bank issues guarantees and Upto 1 year 69,481 - 51 69,532
documentary credits (letters of credit) on behalf of its customers in favour of Over 1 year 22,248 - - 22,248
third parties, with a view to augment the customers’ credit standing. Through
these instruments, the Bank undertakes to make payments for its customers’ Total 91,729 - 51 91,780
obligations, either directly or in case of failure of the customers to fulfil their
financial or performance obligations. $ 000’s
A letter of credit (“LC”) is a written undertaking by a bank (issuing bank) given to 2016 BG LC SBLC Total
the seller (beneficiary) at the request of the bank’s client, i.e., buyer (applicant)
Upto 1 year 43,264 - 728 43,992
to pay a sum of money against presentation of documents complying with the
terms of the credit within a set time limit. Over 1 year 22,264 - - 22,264
Bank guarantees (“BG”) and Standby Letters of Credit (“SBLC”) are written Total 65,528 - 728 66,256
promises issued by a bank to pay a sum of money to the beneficiary in the event
that the obligor (customer) fails to honor its obligations in accordance with the Lease commitments:
terms and conditions of the guarantee. BG and SBLC differ from LC in that they Payments made under operating leases are recognized in profit or loss on
are triggered only if the applicant or principal has made a default and the Bank a straight-line basis over the term of the lease. Lease incentives received
is required to honour the commitment as per the terms of the instrument. are recognized as an integral part of the total lease expense, over the term
of the lease. The Bank leases a number of branch and office premises
Bank guarantees are in the form of financial guarantees or performance under operating leases. The leases typically run for a period of up to 10
guarantees. Financial guarantees are obligations to pay a third party beneficiary years, with an option to renew the lease after that period. During the year
where a customer fails to make payment towards a specified financial obligation. ended December 31, 2017, an amount of $1,963 (2016 - $1,918) has been
Performance guarantees are obligations to pay a third party beneficiary where recognized as expense for these leases.
a customer fails to perform a non-financial contractual obligation. The Bank
generally has collateral available to mitigate potential losses on the guarantees.
Margins available to mitigate losses realized under guarantees were $15,298
(2016 - $21,289), as at the statement of financial position date.

448
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

Future minimum annual rental commitments for premises and equipment 1) The Board of Directors (the “Board”) has oversight over the risks assumed
under long-term non-cancellable operating leases for the next five years ending by the Bank. Specific Board Level Committees have been constituted to
December 31 and thereafter, are shown below: facilitate focused oversight over these risks.
$ 000’s 2) Policies approved from time to time by the Board and Board Committees
form the basis of the governing framework for each type of risk. The
2017 2016
business activities are undertaken within this policy framework.
within 1 year 2,071 1,940
3) Independent groups and sub-groups have been constituted across the Bank
1 - 2 years 1,890 884 and its Parent to facilitate independent evaluation, monitoring and reporting
2 - 3 years 1,756 356 of risks. These groups function independently of the business groups.
3 - 4 years 1,756 230 The Bank ensures it has a sound and safe risk management governance
framework that is shared at all levels of the organization in support of its
4 - 5 years 1,766 230
purpose, mission, business objectives, values and growth principles and is
Thereafter 8,219 730 aligned with its risk appetite. The Bank identifies the significant issues and
17,458 4,370 risks that need to be addressed and is able to demonstrate that they are being
meaningfully dealt with and provides the Board with the assurance that the risk
22. Capital adequacy is managed proactively rather than reactively. Decision making is based on a
strong understanding of risk metrics and analytics.
OSFI has issued the Capital Adequacy Requirements (“CAR”) Guideline and the
Leverage Requirements Guideline which establish two minimum standards: The Bank recognizes that there are emerging risks, i.e., risk events which may
the leverage ratio and the risk-based capital ratio to provide a framework for have the potential to increase in significance and/or may be material to the
assessing the adequacy of capital for all institutions. The leverage ratio test organization and/or significant events, i.e., events or activities which may have
provides an overall measure of the adequacy of an institution’s capital while significant or material impact on the achievement of corporate goals, or an
the risk-based capital ratio focuses on risk faced by the institution. These event or activity which may cause a significant opportunity to be missed, which
capital adequacy requirements apply on a consolidated basis and apply to all are inherent in its business activities. Accordingly, policies and procedures
institutions as defined in the CAR Guideline. OSFI requires all banks to maintain are developed to ensure that all material risks to which the Bank is exposed
sufficient capital to meet or exceed its capital adequacy requirements. The Bank to and any risks associated with key governance elements and operating
has a Capital Management Policy, which is reviewed and approved annually activities are identified, managed, measured, monitored and reported. The Bank
by the Board of Directors, governing the quantity and quality of capital to be takes appropriate and timely action to address any significant weaknesses or
maintained by the Bank. The objective of this policy is to maintain strong and breakdowns related to strategic risk, liquidity, funding and capital management
sufficient capital at levels that is appropriate for business requirements from process matters identified.
time to time. The Bank manages emerging risks and significant events efficiently and
Effective January 1, 2013, the Bank has adopted the Basel III framework as effectively through an integrated risk management framework, which includes
required by OSFI. Further, effective January 1, 2015, OSFI also expects all a comprehensive infrastructure of corporate policies, processes, procedures,
institutions to maintain a minimum leverage ratio. The Bank is in compliance methods, oversight and independent review, designed to reduce and manage
with OSFI’s capital adequacy requirements in respect of risk-based Common these risks to an appropriate threshold. The integrated risk management
Equity Tier 1, Tier 1 and Total capital ratios as well as the Leverage Ratio. framework ensures that operating practices consider the balance of risk and
The composition of regulatory capital and the regulatory capital ratios, as at reward, alignment to business strategy, adequate diversification of risk, pricing
December 31, are presented below: that is appropriate for the risk, mitigation of risk through preventative controls
and risk transfer to third parties as applicable. The integrated risk management
$ 000’s framework provides the Board reasonable assurance that the Bank is in control.
2017 2016
Management frameworks for each risk type are developed which set the
Regulatory Capital parameters regarding decisions considered to be within the business lines’
Common Equity Tier 1 (CET1) Capital discretion versus those which require involvement of either the risk management
Common shares 569,500 634,500 group or the Board. These also establish a threshold for decisions to be elevated
for further review. Risk management frameworks are maintained for the major
Surplus (share premium) relating to common shares - -
risk categories of credit, market (including interest rate risk, foreign exchange
Retained earnings for accounting purposes 82,563 43,312 risk, liquidity and funding risk) and operational risk. Other risk categories are
Accumulated other comprehensive income for recognized within these frameworks, as a result of the failure of the frameworks
capital purposes (3,596) 386 or as residual. Processes not governed by the requirements of credit, market
648,467 678,198 or liquidity and funding frameworks are included in the operational risk
Regulatory adjustments to CET1 Capital management framework.
Debit valuation adjustment on derivatives 5 41 The Bank’s financial objectives, strategic principles and risk management
Net CET1 Capital 648,462 678,157 principles are the foundations of its Risk Appetite Framework. Risk management
principles are set through quantitative and qualitative risk appetite statements
that guide management actions and serve as a foundation to the self-imposed
Additional Tier 1 capital limits set in the specific risk management corporate policies.
Preferred share capital The Bank’s risk appetite framework is defined by the Bank’s Enterprise Risk
(after phase out arrangements for capital adequacy Management Framework (ERMF), which defines the levels of risk that the
purposes) - 55,639 Bank is willing to take in pursuit of achieving its business goals and delivering
Net Tier 1 Capital 648,462 733,796 on its strategic plan while maintaining a sound and safe financial institution.
Net Tier 2 Capital - - In particular, the Bank’s ERMF articulates self-imposed constraints and risk
limits establishing qualitative and quantitative thresholds that guide risk-taking
Total Capital 648,462 733,796
activities in credit risk, market risk, liquidity and funding risk, operational risk,
Regulatory capital ratios: legal and regulatory compliance.
CET1 (%) 21.06% 22.78%
A risk appetite framework balances the needs of all stakeholders by acting as
Tier 1 (%) 21.06% 24.65% both a governor of risk and driver of current and future business strategy. The
Total (%) 21.06% 24.65% objective of establishing a risk appetite framework is to:
Leverage Ratio 9.90% 10.83% • Improve investor/creditor/depositor/regulator confidence in the Bank’s risk
profile;
23. Risk management
• Improve management confidence regarding the Bank’s risk profile;
Risk management framework
• G
 ive the Bank greater control and coordination of risk-taking across
As a financial intermediary, the Bank is exposed to various types of risks. The businesses; and
objective of the risk management framework at the Bank is to ensure that the
key risks facing the Bank are identified, understood, measured and monitored • Rebalance the risk profile to achieve a superior risk-return profile.
and that the Bank follows the policies and procedures established to address A set of interrelated considerations, including capital adequacy, liquidity,
these risks. stress testing and regulatory requirements collectively define the Bank’s
The key principles underlying the risk management framework at the Bank capacity for risk-taking in pursuit of its mission, vision, business objectives
are: and overall strategic goals. The Bank’s strategy is supported by its risk and

449
 notes to financial statements
(in thousands of Canadian dollars)
forming part of financial statements
financial management policies and procedures. The Bank’s capital management
framework includes a comprehensive internal capital adequacy assessment
process (“ICAAP”) conducted annually and which determines the adequate
level of capitalization for the Bank to meet regulatory norms and current and
future business needs, including under stress scenarios. on a proposal for a particular bank or non-bank financial institution or
Stress testing, is conducted to assess the impact of stress events on the Bank’s
risk profile and internal capital adequacy requirements. Stress testing which is a
key aspect of the ICAAP and the risk management framework provides an insight
on the impact of extreme but plausible scenarios on the Bank’s risk profile and
capital position. Based on the Board-approved stress testing framework, the
Bank conducts stress tests on its various portfolios and assesses the impact
on its capital ratios and the adequacy of capital buffers for current and future
periods.
The Bank periodically assesses and refines its stress tests in an effort to ensure
that the stress scenarios capture material risks as well as reflect possible
extreme market moves that could arise as a result of market conditions. The
Bank uses the ICAAP to determine the Bank’s growth strategy, risk profile and
minimum capital resource requirements and formulates its internal capital level
targets based on the ICAAP and endeavors to maintain its capital adequacy
level in accordance with the targeted levels at all times. portfolio exposures, and tenor. Similarly, the material limits documented
The approach of management to handle the key risks facing the Bank is outlined
below: condominiums, and rental properties.
(a) Credit risk All credit exposures are measured and monitored using a centralized
Credit risk is the risk that the bank will incur a loss because its customers
or counterparties fail to discharge their contractual obligations and arises
principally from the Bank’s loans and advances to customers and other
banks, derivative assets and investment in debt securities. The Bank’s
CCCRP, RCRP and Residential Mortgage Underwriting Policy (“RMUP”),
which are approved by its Board, together describe the principles which
underlie and drive the Bank’s approach to credit risk management together
with the systems and processes through which it is implemented and
administered. accounts, including their ratings and underlying collateral, are reviewed at
The CCCRP aims to maximize the Bank’s risk-adjusted rate of return while
maintaining the Bank’s credit risk exposure on corporate and commercial
counterparties within limits and parameters as approved by the Board.
Additionally the Bank has implemented RCRP and RMUP. These policies
provide guidelines in respect of the manner in which lending and recovery
activities of retail lending business and residential mortgage business
shall be conducted by the Bank. The principles underlying overall credit
risk management are covered in CCCRP, RCRP and RMUP for the Bank’s
corporate credit, retail credit and mortgage lending businesses respectively.
The Bank takes a two-tier approach to assessment of credit risk for its
corporate and commercial lending business: initially, by a commercial
lending officer proposing the transaction, followed by a risk officer
independently assessing the same. The CCCRP lays down a structured and
standardized credit approval process, which includes a well-established
procedure of independent and comprehensive credit risk assessment and
the assignment of an internal risk rating to the borrower. The risk rating is
a critical input for the credit approval process and is used as an input in
arriving at the credit risk spread, and also subsequently, in arriving at the
loan loss allowance against the credit. including real estate/property; and
Credit proposals are approved by either the Risk Committee (“RC”) or the
Management Credit Committee (“MCC”) based on, inter alia, the amount
and internal risk rating of the facility. All credit proposals are approved
by the MCC before being recommended to the RC by the Chief Risk
Officer (“CRO”). The credit middle office function is responsible for credit
administration, which includes monitoring compliance with the terms and
conditions for credit facilities prior to disbursement. It also reviews the
completeness of documentation and creation of security for assets financed
and post-disbursement monitoring as per stipulated terms and conditions.

Additionally, the residential mortgage applications are electronically
transmitted from the mortgage brokers into an underwriting system with
built-in business rules to determine parameters/approval authorities to
facilitate the underwriting process. The applications for insured mortgages
are also submitted to mortgage insurer for approval. Only the applications
approved by the mortgage insurer are adjudicated by the underwriting team
based on the Bank’s RMUP. The underwriting team is also responsible for
credit administration, which includes monitoring compliance with the terms
and conditions for the committed mortgages prior to disbursement. The
closing centers review the completeness of documentation and creation of
security including title insurance for the mortgage.
The Bank follows an approach consistent with the Parent Bank in terms of
dealing with sovereign and financial institutions worldwide. The primary
responsibility for evaluating global financial institution exposures rests with
the Parent Bank’s International Financial Institutions Group (IFIG). Global
bank lines are advised by the Parent Bank annually. The Bank adopts the
450
Continued
lower of the globally approved limit or the maximum permissible limits
as applicable under large exposure limit under the Portfolio Management
section in the CCCRP. Lending officers approach IFIG and obtain their
first line approval for entering in to a relationship, before progressing
counterparty and present their evaluation in writing to MCC. The Bank has
also setup aggregate exposure limits which are monitored and reported to
MCC on a monthly basis and to RC on a quarterly basis.
The Bank has put in place a Board-approved comprehensive limit
framework (as included in CCCRP, RCRP, RMUP and ERMF) to prudently
manage the credit risk profile of the Bank. The Bank complies with the
norms on exposure stipulated by OSFI for both single borrower as well as
at a connection level. Limits have been set as a percentage of the Bank’s
capital funds and are regularly monitored. The material limits included
as part of the CCCRP include limits on single party exposure, risk rating
category, industry, geographical exposures, portfolio exposures, type of
borrower, class of security, tenor, and Loss Given Default (“LGD”) profile.
The material limits included as part of the RCRP include Limits on single
borrower exposure, risk rating, bank exposures, geographical exposures,
as part of the RMUP includes the limits on un-securitized mortgages, fixed
rate commitments, fixed rate per-approvals, provincial exposures, high-rise
exposure management system. The analysis of the composition of the
portfolio and limits compliance is presented to quarterly to RC. In addition,
credit limits for Corporate and Treasury clients are monitored by the Middle
Office Groups and the monitoring reports which detail deficiencies and limit
breaches, are sent to Senior Management on a regular basis.
Monitoring of credits, while ongoing as part of scheduled periodic credit
reviews, can also be triggered by any material credit event coming to the
Bank’s notice through either primary or secondary sources. All borrower
least on an annual basis or in a shorter interval if recommended by the CRO
or the relevant sanctioning committee.
Credit risk is also managed at the portfolio level by monitoring and reporting
to the MCC and RC, the key parameters of risk concentration; namely,
product specific exposures, large exposures, industry/sectoral exposures,
country/geographical exposures and rating category-based exposures.
Collateral is obtained when the loan is initially granted and is monitored
periodically. For impaired loans, the available collateral has been considered
in determining loan loss allowances. The types of acceptable collateral
are documented in various relevant policy documents. The main types of
collateral obtained are as follows:
• F
 or corporate/commercial lending, assets of the borrower/corporate
guarantors, personal assets of the principals and/or pledge of equity
interests, charge on equipment and current assets, hypothecation of
movables. Generally, for commercial lending, the Bank also obtains
guarantees from parent companies for loans to their subsidiaries;
• F
 or retail lending on a case to case basis, charge on personal assets,
• F
 or residential mortgages, first/second mortgage charge in favour of the
Bank, as well as insurance by CMHC or approved private insurers.
The amount of loans based on the types of collateral held in respect of the
loans as at December 31 are summarized below:
• Commercial and corporate loans of:
• $155,813 (2016 - $163,393) are collateralized by guarantees.
• $
 1,626,158 (2016 - $1,647,234) are collateralized by variety of assets
and/ or charge on fixed/ current assets.
• $
 576,590 (2016 - $587,162) are either unsecured or senior unsecured
facilities.
• P
 ersonal loans include advances of $36,530 (2016 - $46,698), under the
“Immigrant Investor Program”, which is secured by a promissory note,
fully and unconditionally guaranteed by either the Federal government
or the respective province in Canada. Further, an amount of $48 (2016
- $75) of other personal loans are secured by term deposits placed with
the Bank.
• C
 ommercial mortgages are usually secured by a first charge on
property.
• T
 rade finance exposures are backed by guarantees by other financial
institutions or current assets of the borrower.
• E
 xcept for the conventional mortgages, all residential mortgages are
fully insured with CMHC or approved private insurers.
notes to financial statements
(in thousands of Canadian dollars)
forming part of financial statements
(b) Market risk commercial deposits, other financial institutions, inter bank borrowings,
Market risk is the uncertainty of earnings faced by the Bank as a result of
volatility in market factors (i.e., interest rates, currency exchange rates, market
liquidity and asset prices). Market risk events may impact the valuation of
investments and the net interest income and net interest margin resulting in an
impact on the profit and loss account. The policies approved by the Board for
addressing market and liquidity risks are Liquidity Management Policy (“LMP”),
Market Risk Management Policy (“MRMP”) and Liquidity Contingency Plan
(“LCP”).

The Asset Liability Management Committee (“ALCO”) considers various
investment and treasury operations matters, implementation of risk mitigation
measures, and recommends major policy changes governing treasury activities
to the RC. Furthermore, an independent TCSG is set up to monitor and report
the various risk limits set through the LMP and the MRMP.
The key risks to which the Bank is exposed from a market risk perspective relate
to:
Interest rate risk - Interest rate risk is defined as the exposure of a bank’s
(i) 
financial condition to adverse movements in interest rates. Earnings from
interest-sensitive investments and the overall value of the investment
portfolio will be impacted by changes in interest rates. The MRMP currently
sets out the measurement process to include the use of repricing gap
reports and estimation of the sensitivity of the Bank’s net interest income to
a 100 bps adverse change in the level of interest rates, defined as Earnings
at Risk (“EaR”). The sum of EaR for the Bank over a 4-quarter horizon for an
adverse 100 bps parallel shift in interest rates shall not exceed 3% of the
Bank’s current Tier 1 plus Tier 2 capital or $15,000 (whichever is lower). At
December 31, 2017, the actual limit utilization was $5,145, i.e. 0.79% of the
Bank’s current Tier 1 plus Tier 2 capital.
Further, the Bank uses various measures, including Duration of Equity
(“DoE”), which takes into consideration duration and value of both assets
and liabilities. DoE is a measure of interest rate sensitivity, which indicates
how much the market value of equity would change if interest rates change
by 1%. The Bank has set a maximum limit of (+/-) 4% of Tier 1 capital given
a 100 bps change in interest rates and as at December 31, 2017, the actual
DoE was 2.11, based on which the actual limit utilization was 2.11% of Tier
1 capital.
(ii) Foreign exchange risk - The risk arises due to positions in non-Canadian
denominated currencies, which in turn arises from assets and liabilities in
those currencies. The risk originates as a result of the impact on revenue
due to the potential revaluation of non-Canadian assets and liabilities.
The aggregate net overnight open exchange position across all foreign
currencies as per the MRMP shall not exceed U.S. $15,000,000. Generally,
Value-at-Risk (“VaR”) is a tool for measuring market risk on trading positions.
It seeks to ascertain the maximum loss on a portfolio at a given confidence
level over a specific holding period. As per the MRMP, a VaR limit (99%-
1day) of U.S. $250,000 has been set on the aggregate overnight open
position and the actual VaR as at December 31, 2017 was U.S. $78,130. The
Bank uses one-year data to compute VaR and there have been no breaches
of the VaR limit in the year ended December 31, 2017. has been formulated on the basis of a business impact analysis carried out
(iii) Liquidity and funding risk - Liquidity risk relates to the potential difficulty in
accessing financial markets in order to meet payment obligations. Liquidity
risk is the potential for losses that could be incurred from holding insufficient
liquidity to survive a liquidity contingent stress event, whether name-specific
or market-wide in origin. It includes the risk of unexpected increases in the
cost of funding the assets, and the risk of being unable to access the market
or to liquidate investments in a timely manner at a reasonable price. The
LMP captures the details of the risk appetite framework and risk capacity
of the Bank. The Bank expresses its liquidity risk appetite through a range
of limits across liquidity gaps covering the entire spectrum of the balance
sheet, including limits specified in major currencies (Canadian and U.S.
dollars). The Bank also monitors liquidity risk through liquidity ratios and
regulatory reports such as Net Cumulative Cash Flows (NCCF) and Liquidity
Coverage Ratio (LCR) on a periodic basis. mitigate outsourcing risks and ensure the application of a standardized
The LMP also captures the details of stress test scenarios (Bank-specific,
Market-specific and Combined scenarios) for different short-term stress
horizons. Under each of these scenarios, each cash flow item namely
deposits, unfunded authorizations, loan delinquencies, collateral
requirements etc. are subjected to different levels of stress depending on
the stress horizon and type of scenario and appropriate funding sources are
identified and quantified to mitigate the net stress outflows.
The LCP serves as a framework for early identification and calibrated action
in the event of tight liquidity conditions. The LCP includes various indicators
which are monitored regularly, and lays down the mechanism for escalation,
remedial action and crisis management until return to normalcy.
Treasury ensures that adequate liquidity is maintained at all times through
systematic funds planning and maintenance of liquid investments. The
Bank at all times seeks to maintain diversification in the sources and tenor
of its funding. The Bank’s liabilities are largely drawn from retail deposits,
Continued
securitizations and other funding sources which may become available from
time to time. In addition, liquidity stress testing analysis as per the LCP are
regularly performed to assess the Bank’s ability to withstand worst crisis
situation.
The Treasury team manages the market risk of treasury positions and the
day-to-day liquidity of the Bank. The ALCO and the RC undertake a periodic
review of the market risk and liquidity position of the Bank.
(c) Operational risk
Operational risk is defined as the risk of loss resulting from inadequate or
failed internal processes, people and systems or from external events. This
definition includes legal risk, but excludes strategic and reputational risk.
The Bank has developed and implemented an Operational Risk Management
Policy, which defines the guidelines adopted by the Bank towards minimizing
losses due to process failures, product design flaws that can expose the
Bank to losses due to fraud, impact of failures in technology/systems and
continuity of Banking operations in contrary conditions.
The Bank has also developed and implemented an Information Security
Policy. The policy gives direction towards development, maintenance and
review of Information Security (IS) standards and procedures adopted by
the Bank across people, process and technology. The policy endeavors
to ensure compliance with all internal and regulatory IS requirements,
including customer data protection.
The senior management of the Bank is responsible for establishment and
maintenance of an adequate and effective system of internal controls, a
measurement system for assessing the various risks of the Bank’s activities,
a system for relating risks to the Bank’s capital level appropriate methods for
monitoring compliance with laws, regulations and supervisory and internal
policies. The senior management reports to the Board on these issues. The
Bank has implemented its risk and control self-assessment approach to
identify and ensure effective control of its operational risks.
To identify operational risks in new products/processes, all such proposals
are approved by the Product and Process Approval Committee (“PAC”). The
PAC comprises of senior executives and approval is granted after obtaining
inputs from the relevant groups and control functions in the Bank. The
Operational Risk Management Group (“ORMG”) under the supervision of
Chief Risk Officer is responsible for providing oversight over operational
risk within the Bank. The ORMG does this by undertaking activities of
operational risk identification, assessment, measurement, monitoring and
reporting to management level Operational Risk Committee (“ORC”) and the
Risk Committee and the Board. All PAC proposals are internally rated by
ORMG. ORMG performs the independent challenge process in all areas of
operational risk. Independent challenge process at the time of PAC note
review is documented in the PAC instructions.
The Bank has developed and implemented a Business Continuity Plan
(“BCP”). This plan is designed to facilitate continuity in critical business
operations in the event of a disaster or an emergency situation. The BCP
for the individual groups involving identification of critical activities and
determination of their recovery time objectives.
The Bank has outsourced certain activities in the interest of cost and process
efficiencies, including mid-office operations for treasury and corporate
banking, information technology, corporate operations and trade finance
operations to the Parent, terms of which are governed through a master
service level agreement (“SLA”) and specific SLAs. All these activities are
closely monitored under the framework of outsourcing risk with regular
monitoring of SLA performance dashboards. Material performance
shortfalls within these SLA’s are taken up with the service provider and the
same is reported to management and Board level committees.
The Bank has developed and implemented an Outsourcing Policy to
approach for all outsourcing arrangements entered into by the Bank. All
proposed outsourcing arrangements are assessed for their criticality prior
to outsourcing. For all such arrangements deemed to be critical, a detailed
assessment is conducted and the proposal is approved by the Outsourcing
Committee. The performance of vendors are periodically reviewed and
assessment reports are presented to the RC.
Operational risk incidents are reported regularly and transactions resulting
in losses are routed through operational risk account. Root cause analysis
is carried out for the significant operational risk incidents (beyond the
threshold limits) reported and corrective actions are incorporated back
into respective processes. The Bank has implemented incident reporting
process, which facilitate capturing of operational risk incidents by the
employees of the Bank.
The operational risk losses and incident analysis are submitted to the Risk
Committee and to the Board on a periodic basis. Operational risk exposures
(risk and control self-assessment results, operational risk incidents analysis
451
 notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

and key risk indicators) are monitored by the ORC on a regular basis and Stage 3 – Included in this stage are financial assets that have an objective
reported to the Senior Management in the form of dashboards on a periodic evidence of impairment. The allowance for credit losses in stage 3 will
basis. continue to capture the lifetime ECLs as in Stage 2. It is also expected that
In keeping with the Bank’s enterprise-wide approach for managing
 loans which are currently presented as impaired under IAS 39 would be
Regulatory and Compliance Risks, the Bank has implemented a Legislative classified as stage 3 loans under IFRS 9. Interest revenue is calculated based
Compliance Management (“LCM”) Policy. The policy applies to every on the carrying amount of the asset, net of the loss allowance, rather than
aspect of the Bank’s operations and activities without exception. The Bank on its gross carrying amount.
recognizes the risk of legal and regulatory sanctions, material financial loss,
and loss to reputation that it may suffer in the event of non-compliance c) Hedging
with any of regulatory requirements. The Bank has implemented a formal The standard expands the scope of hedged items and hedging items to
risk assessment methodology which outlines the overall Regulatory Risk which hedge accounting can be applied and aligns the accounting more
management process. This methodology uses international standards and closely with risk management. Quantitative measures for effectiveness
best practices including the COSO Internal Control Framework and COSO testing are no longer specified under the new standard and the standard
ERM Integrated Framework, as guidelines. does not permit voluntary de-designation of the hedge. IFRS 9 includes an
accounting policy choice to defer the adoption of IFRS 9 hedge accounting
Group risk management framework and to continue with IAS 39 hedge accounting. The Bank has decided to
The Bank is aligned with the Parent’s risk management framework, which adopt this accounting policy choice.
has been developed in order to identify, evaluate and manage key risks on Some of the key concepts in IFRS 9 that require significant judgment
a worldwide basis. The framework is applicable to all overseas banking and could have a significant impact on the allowance for loan losses
entities of the Parent. The policies applicable to the Bank are formulated are:
in consultation with the Risk Management Group of the Parent and are
independently reviewed and approved by the Bank’s Board. Assessment of Significant Increase in Credit Risk
The assessment of a significant increase in credit risk (“SICR”) will be carried
24. Standards issued but not yet mandatorily effective out on a relative basis. To assess whether the credit risk on a financial asset
 New international financial reporting standards and related interpretations, has increased significantly since origination, the Bank will compare the risk of
amendments to existing standards and interpretations not yet mandatorily default occurring over the expected life of the financial asset at the reporting
effective for the year ended December 31, 2017 have not been applied in preparing date to the corresponding risk of default at origination, using key risk indicators.
these financial statements. This section contains standards and interpretations At each reporting date, the change in credit risk will be individually assessed for
issued, which will be applicable to the Bank at a future date. The Bank intends to those considered individually significant except retail exposures which will be
adopt those standards when they become effective. assessed collectively until they are 90 days past due and individually thereafter.
IFRS 9 contains a rebuttable presumption that instruments which are 30 days
IFRS 9, Financial Instruments (“IFRS 9”): past due have experienced a significant increase in credit risk. We do not intend
On July 24, 2014, the IASB issued IFRS 9 Financial Instruments (“the Standard”), to rebut this presumption. Financial assets can move in both directions through
which will replace IAS 39. The Standard covers three broad topics: Classification the stages of the impairment model and will allow credit risk of financial assets
and Measurement, Impairment and Hedging. In June 2016, OSFI issued “IFRS to move back to Stage 1 if increase in the credit risk since origination reduces
9 Financial Instruments and Disclosures” which provides guidance on the and is determined to be no longer significant.
application of IFRS 9 that is consistent with the BCBS guidance issued in 2015.
The standard is effective for the Bank on January 1, 2018 on a retrospective basis Macroeconomic and forward looking factors and scenarios
with certain exceptions. The implementation of IFRS 9 has been a significant IFRS 9 requires an unbiased and probability weighted estimate of credit losses
initiative for the Bank, involving the risk management, operations and finance by evaluating a range of possible outcomes that incorporates forecasts of future
team. The project has been managed through a strong governance structure economic conditions. Macroeconomic factors and forward looking information
across the teams along with the business units. The Bank’s system of internal are required to be incorporated into measurement of ECL as well as the
controls is being revised to meet the requirements of IFRS 9. determination of whether there has been a SICR since origination. Measurement
of ECLs at each reporting period should reflect reasonable and supportable
Classification and Measurement, Impairment and Hedging. information at the reporting date about past events, current conditions and
forecasts of future economic conditions. The Bank will use three scenarios that
a) Classification and Measurement will be probability weighted to determine ECL.
The standard uses a single approach to determine whether a financial asset
is measured at amortized cost or fair value. The standard requires that Use of expert credit judgment
financial assets be classified based on the business model for managing the In line with OSFI guidelines, the Bank’s ECL methodology requires the use
financial assets and the contractual cash flow characteristics of the financial of expert credit judgment to incorporate the estimated impact of factors not
assets. Financial assets will be measured at fair value through profit or loss captured in the modelled ECL results for all reporting periods.
unless certain conditions are met which permits measurement at amortized
cost or at fair value through OCI. Most of the IFRS 9 requirements for Expected life
financial liabilities have been carried forward unchanged from IAS 39, except The Bank would consider the maximum contractual period over which it
requirements related to presenting fair value changes due to the financial is exposed to credit risk. All contractual terms would be considered when
liabilities designated as fair value through profit and loss. The Bank does not determining the expected life, including extension and rollover options. For
expect the implementation to result in a significant change in classification certain revolving credit facilities that do not have a fixed maturity and where
and measurement of its financial assets or its financial liabilities. credit losses would not be mitigated by management actions, the expected life
is estimated based on the period over which the Bank is exposed to credit risk.
b) Impairment
 The standard introduces a new single model for the measurement of Definition of default
impairment losses on all financial instruments subject to impairment The definition of default used in the measurement of expected credit losses and
accounting and for commitments to extend credit. The expected credit loss the assessment to determine movement between stages will be consistent with
(ECL) model replaces the current “incurred loss” model and is based on the definition of default used for internal credit risk management purposes. IFRS
a forward looking approach. IFRS 9 Impairment model uses a three stage 9 does not define default, but contains a rebuttable presumption that default has
approach based on the extent of credit deterioration since origination. occurred when an exposure is greater than 90 days past due. The Bank does not
 tage 1 – 12-month ECL applies to those financial assets that are not
S intend to rebut this presumption.
impaired and for which there is no significant increase in credit risk since
origination. The ECL will be computed using a 12-month PD representing Transition impact
the probability of default expected over the next 12 months or less in line The Bank will record an adjustment to its opening January 1, 2018 retained
with the maturity profile. The IFRS 9 requirement differs from the current earnings and AOCI, to reflect the application of the IFRS 9 requirements at the
practice which estimates a collective allowance to recognize losses that adoption date and will not restate comparative periods. The Bank estimates the
have been incurred but not reported on performing loans. IFRS 9 transition amount will reduce shareholders’ equity by approximately
$5,271 after-tax and the CET1 capital ratio by approximately 19 basis points as at
 tage 2 – When a financial asset is not impaired but experiences a significant
S
January 1, 2018. The estimated impact relates primarily to the implementation
increase in credit risk since origination, it is moved to stage 2. The ECL
of the ECL requirements. The Bank will continue to revise, refine and validate
computation in stage 2 is required to be based on lifetime PD that represents
the ECL models and related process controls prior to publishing its first IFRS 9
the probability of default expected over the remaining lifetime of the asset.
audited financial statements.
The provisions are higher in stage 2 due to an increase in risk and impact of
a longer time horizon being considered compared to Stage 1.

452
notes to financial statements
(in thousands of Canadian dollars)

forming part of financial statements Continued

IFRS 15, Revenue from Contracts with Customers, (“IFRS 15”): IFRS 16, Leases, (“IFRS 16”):
In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers, IFRS 16 specifies how an IFRS reporter will recognise, measure, present and
which provides a single principle-based framework to be applied to all contracts disclose leases. The standard provides a single lessee accounting model,
with customers. IFRS 15 replaces the previous revenue standard IAS 18, requiring lessees to recognise assets and liabilities for all leases unless the
Revenue, and the related Interpretations on revenue recognition. The standard lease term is 12 months or less or the underlying asset has a low value. Lessors
scopes out contracts that are considered to be lease contracts, insurance continue to classify leases as operating or finance, with IFRS 16’s approach
contracts and financial instruments, and as such will impact the businesses to lessor accounting substantially unchanged from its predecessor, IAS 17.
that earn fee and commission revenues. The new standard is a control based IFRS 16 was issued in January 2016 and applies to annual reporting periods
model as compared to the existing revenue standard which is primarily focused beginning on or after January 1, 2019. Management currently is in process of
on risks and rewards. Under the new standard, revenue is recognized when a assessing the impact that IFRS 16 will have on the financial
customer obtains control of a good or service. Transfer of control occurs when
the customer has the ability to direct the use of and obtain the benefits of the
good or service. In July 2015, the IASB confirmed a one-year deferral of the
effective date of the Standard to annual reporting periods beginning on or
after January 1, 2018. Management is of the opinion that IFRS 15 will have no
significant impact on the financial statements.

453
 supplementary
statements of statements of financial information
financial position comprehensive income
as at for the year ended December 31,
` in millions ` in millions
December December 2017
31, 2017 31, 2016 2016

Assets Interest income:

Cash and deposits with banks [note 1]: Loans 8,945.7 9,663.5
Notes and coins 104.0 81.5 Securities 258.6 187.3
Deposits with regulated financial institutions:
Deposits with regulated financial institutions 6.2 41.1
Interest bearing 1,197.1 2,635.7
9,210.5 9,891.9
Non-interest bearing 932.1 1,456.0
2,233.2 4,173.2 Interest expense:

Derivative assets [note 3] 1,302.3 535.4 Deposits 2,373.0 2,733.3

Investment securities [note 2]: Available-for-sale 24,545.8 28,136.1
Secured borrowings 2,779.0 2,759.6
Loans, net of allowance for credit losses [note 4]:
Short-term borrowings [note 11] 4.8 23.3
Commercial and corporate loans and commercial 110,250.2 110,545.0
mortgages 5,156.8 5,516.2
Residential mortgages 22,470.0 22,277.1 Net interest income 4,053.7 4,375.7
Securitized residential mortgages 149,066.5 157,644.0
Fee and commission income [note 14] 478.6 363.8
Personal 2,059.1 2,487.4
Net trading income [note 15] (4.4) 1.0
283,845.8 292,953.5
Other: Other income [note 16] 7.9 536.5
Interest accrued on loans and deposits 423.2 386.4 Total revenue 4,535.8 5,277.0
Property and equipment [note 5] 54.8 65.8 Net impairment loss on loans [note 4] (78.9) 6,169.3
Deferred tax assets [note 13] 454.3 462.4
Personnel expenses 993.6 879.4
Other assets [note 6] 1,387.6 1,972.7
Depreciation [note 5] 30.5 29.3
2,319.9 2,887.3
Total assets 314,247.0 328,685.5 Other expenses [note 17] 837.9 713.0
1,783.1 7,791.0
Liabilities and Shareholders' Equity Profit before income taxes 2,752.7 (2,514.0)
Deposits from customers [note 7]:
Income tax expense/ (recovery) [note 13] 752.3 (649.5)
Personal 122,219.7 121,545.9
Profit after income taxes 2,000.4 (1,864.5)
Commercial 7,704.9 9,089.1
Other comprehensive income/ (loss), net of
129,924.6 130,635.0
income taxes:
Derivative liabilities [note 3] 290.1 2,372.7
Items that may be reclassified subsequently to
Deposits from banks 60.8 20.7 income:
Current tax liabilities - - - Cash flow hedges:
Interest accrued on deposit liabilities 1,388.0 1,632.8 Effective portion of changes in fair value 3.9 160.3
Accounts payable and other liabilities [note 8] 1,733.1 603.4
Net amount transferred to profit or loss (11.8) 32.2
Secured borrowings [note 10] 147,380.9 155,659.7
- Income tax (expense)/ benefit: 2.1 (51.0)
Total liabilities 280,777.5 290,924.3
Shareholders' equity: - Fair value reserve (available-for-sale financial
assets):
Share capital [note 12]:
Net change in fair value (289.1) (4.6)
Common share capital 29,024.6 32,337.3
Net amount transferred to profit or loss 13.0 (212.1)
Additional paid-in capital 362.6 297.7
Preferred share capital - 2,835.6 - Income tax (expense)/ benefit: 73.2 57.5
Retained earnings 4,207.8 2,207.4 Other comprehensive income/ (loss), net of (208.7) (17.7)
Accumulated other comprehensive income (125.5) 83.2 income taxes
Total comprehensive income attributable to equity holders 1,791.7 (1,882.2)
Total equity 33,469.5 37,761.2
Total liabilities and shareholders' equity 314,247.0 328,685.5 See accompanying notes to financial statements

See accompanying notes to financial statements

454
 supplementary
statements of changes in shareholders’ equity financial information

for the year ended December 31

` in millions
Common share Additional paid-in Preferred share Retained Accumulated other Accumulated other Accumulated other Total
capital [note 12] capital [note 12] capital [note 12] earnings comprehensive income comprehensive comprehensive
on AFS securities income on loans income on hedges
Balance as at January 1, 2017 32,337.3 297.7 2,835.6 2,207.4 1.0 18.6 63.6 37,761.2
Comprehensive income
Profit after income taxes - - - 2,000.4 - - - 2,000.4
Other comprehensive income, net of income tax recovery of ` 75.3
Net unrealized gain/ (loss) during the year - - - - (212.5) - - (212.5)
Net realized gain/ (loss) on hedges during the year - - - - - - 2.9 2.9
Amortization of other comprehensive income during the year - - - - - 25.1 (8.7) 16.4
Net amount transferred to profit or loss on sale/ redemption - - - - 27.6 (43.1) - (15.5)
Net unrealized gain on bonds reclassified to loans - - - - - - - -
Total comprehensive income - - - 2,000.4 (184.9) (18.0) (5.8) 1,791.7
Transactions with owners, recorded directly in equity
Additional paid-in capital expense - 64.9 - - - - - 64.9
Dividends declared and paid - - - - - - - -
Repatriation of capital (3,312.7) - (2,835.6) - - - - (6,148.3)
Balance as at December 31, 2017 29,024.6 362.6 - 4,207.8 (183.9) 0.6 57.8 33,469.5

Balance as at January 1, 2016 34,885.6 235.1 4,726.0 5,006.6 3.2 175.6 (77.9) 44,954.2
Comprehensive income
Profit after income taxes - - - (1,864.5) - - - (1,864.5)
Other comprehensive income, net of income tax recovery of ` 6.5
Net unrealized gain/ (loss) during the year - - - - (3.4) - - (3.4)
Net realized gain/ (loss) on hedges during the year - - - - - - 117.9 117.9
Amortization of other comprehensive income during the year - - - - - 135.6 23.6 159.2
Net amount transferred to profit or loss on sale/ redemption - - - - 1.2 (292.6) - (291.4)
Net unrealized gain on bonds reclassified to loans - - - - - - - -
Total comprehensive income - - - (1,864.5) (2.2) (157.0) 141.5 (1,882.2)
Transactions with owners, recorded directly in equity
Additional paid-in capital expense - 62.6 - - - - - 62.6
Dividends declared and paid - - - (934.7) - - - (934.7)
Repatriation of capital (2,548.3) - (1,890.4) - - - - (4,438.7)
Balance as at December 31, 2016 32,337.3 297.7 2,835.6 2,207.4 1.0 18.6 63.6 37,761.2
See accompanying notes to financial statements

statements of cash flows

for the year ended December 31

` in millions
2017 2016
Cash flow from operating activities:
Profit after income taxes 2,000.4 (1,864.5)
Adjustments for:
Net impairment loss on loans and advances (78.9) 6,169.3
Depreciation 30.5 29.3
Net realized gain/(loss) on non-trading securities (75.8) (445.8)
Income tax expense 752.3 (649.5)
Net interest income (4,053.7) (4,375.7)
Net change in derivative financial instruments (2,849.5) (2,138.9)
(4,274.7) (3,275.8)
Change in:
Deposits, net (670.3) (4,395.9)
Treasury borrowings, net - (3,152.1)
Loans and advances, net 9,186.6 (5,489.9)
Other items, net 704.2 (2,828.8)
9,220.5 (15,866.7)
Interest received 9,097.7 10,048.7
Interest paid (5,401.6) (5,899.8)
Income tax refund/ (payment) 104.3 (275.2)
3,800.4 3,873.7
Net cash used in operating activities 8,746.2 (15,268.8)
Cash flow from investing activities:
Acquisition of securities (146,000.7) (50,593.5)
Net proceeds from sale of securities 149,742.8 51,676.5
Acquisition of property and equipment, net (19.6) (31.6)
Net cash from/(used in) investing activities 3,722.5 1,051.4
Cash flow from financing activities:
Repatriation of common equity capital (3,312.7) (2,548.3)
Repatriation of prefered share capital (2,835.6) (1,890.4)
Repayment of subordinated notes - -
Proceeds/(repayment) of secured borrowings, net (8,278.8) 8,789.9
Dividends paid - (934.7)
Net cash from financing activities (14,427.1) 3,416.5
Net increase/(decrease) in cash and cash equivalents (1,958.4) (10,800.9)
Effect of exchange rate fluctuations on cash and cash equivalents held 18.4 13.0
Cash and cash equivalents, beginning of year 4,173.2 14,961.1
Cash and cash equivalents, end of year [note 1] 2,233.2 4,173.2
Represented by:
Notes and coins 104.0 81.5
Interest bearing deposits with regulated financial institutions 1,197.1 2,635.7
Non-interest bearing deposits with regulated financial institutions 932.1 1,456.0
2,233.2 4,173.2
See accompanying notes to financial statements

455
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

I. Reporting entity 2. Financial assets
ICICI Bank Canada (the “Bank”) is a limited liability company, incorporated and  Financial assets are classified into the following categories: financial
domiciled in Canada. It is a wholly owned subsidiary of ICICI Bank Limited (the assets held for trading (trading account securities); available-for-sale
“Parent”) and the address of the Bank’s registered office is Don Valley Business (“AFS”) financial assets; held-to-maturity (“HTM”) investments and loans
Park, 150 Ferrand Drive, Suite 1200, Toronto, ON, M3C 3E5. The Office of the and receivables. Management determines the classification of its financial
Superintendent of Financial Institutions Canada (“OSFI”) granted the Bank instruments at initial recognition. All regular way purchases or sales of
its Letters Patent of Incorporation on September 12, 2003, and an Order to financial assets are recognized and derecognized on a trade date basis.
Commence and Carry on Business on November 25, 2003. The Bank launched
its operations on December 19, 2003. Trading account securities
Trading account securities are recorded on the statements of financial
II. Basis of preparation position at fair value. Transaction costs are recognized in the statements of
a) Statement of compliance comprehensive income when incurred. The fair values of trading account
 These financial statements have been prepared in accordance with securities are based on quoted market prices where available; otherwise, the
accounting policies as laid out in these financial statements. fair values are estimated using quoted market values for similar securities
The financial statements for the year ended December 31, 2017 have been or other approaches (primarily, discounted cash flows) that maximize use
approved for issue by the Bank’s Board of Directors on February 27, 2018. of available market information. Gains and losses arising from changes in
fair value are recognized in the statements of comprehensive income under
b) Basis of measurement “Net trading income”.
These financial statements have been prepared on the historical cost basis, The Bank did not hold any trading account securities as at December 31,
except for the following items in the statements of financial position that are 2017 (2016 - nil).
measured at fair value:
AFS securities
• Available-for-sale investment securities
• Derivative assets and derivative liabilities AFS securities are recognized initially at fair value and transaction costs
are added to the initial carrying value of the securities. AFS securities are
c) Functional and presentation currency subsequently measured at fair value with unrealized gains and losses being
recognized in OCI until sale, or impairment, at which point, the cumulative
The Bank’s functional currency is the Canadian dollar. For the purpose of
gain or loss is transferred from other comprehensive income to profit or
inclusion in the annual report of the Parent, all Canadian dollar amounts in
loss. Foreign exchange gains/ losses on foreign currency denominated
these financial statements in respect of 2017 and 2016 have been translated
AFS debt securities are recognized in the statement of comprehensive
into Indian Rupees using the foreign exchange rate as at December 31, 2017
income under “Foreign exchange gain, net” and reported as a part of “Other
(1 C$ = 50.965 Indian Rupees). Except as otherwise indicated, financial
Income”. Interest income is determined in accordance with the effective
information presented in Indian Rupees has been rounded to the nearest
interest method and is included in “Interest income: Securities”, in the
million.
statements of comprehensive income.
d) Use of estimates and judgements As at December 31, 2017, the amortized cost of AFS securities exceeded the
In preparing these financial statements, management has made judgments, fair value by `250.0 (2016 - fair value exceeded amortized cost by `1.5).
estimates and assumptions that affect the application of the Bank’s The composition and maturity profile of AFS securities are as follows:
accounting policies and the reported amounts of assets, liabilities, income
` in millions
and expenses. Actual results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions December 31, 2017 Under 1 to 5 Over Total AFS
to estimates are recognized prospectively. 1 year years 5 years securities
Canadian federal & provincial
(i) Judgements
bonds and treasury bills 5,892.7 16,106.4 - 21,999.1
Information about judgements made in applying accounting policies
that have the most significant effects on the amounts recognized in the Bankers Acceptance 2,546.7 - - 2,546.7
financial statements is set out below: 8,439.4 16,106.4 - 24,545.8
• Note 2 - impairment of financial assets
• Note 3 - accounting for hedges ` in millions
• Note 4 - impairment of loans December 31, 2016 Under 1 to 5 Over Total AFS
• Note 10 - accounting for mortgage securitization 1 year years 5 years securities
• Note 19 - classification of financial instruments Canadian federal & provincial
(ii) Assumptions and estimation uncertainties bonds and treasury bills 21,516.6 1,015.7 - 22,532.3
Information about assumptions and estimation uncertainties that have
Bankers Acceptance 5,603.8 - - 5,603.8
a significant risk of resulting in a material adjustment to the amounts
reported in these financial statements is set out below in the following 27,120.4 1,015.7 - 28,136.1
notes:
The fair values and unrealized gains/losses on the AFS securities are as follows:
• Note 4 - loan loss estimates
• Note 13 - deferred tax assets ` in millions
• Note 19 - fair values of financial instruments December 31, 2017 Amortized Gross Gross Fair value
cost unrealized unrealized of AFS
e) Changes in accounting policies gains losses securities
The Bank actively monitors developments and changes in standards from Canadian federal & provincial
the IASB as well as regulatory requirements from OSFI. There were no new bonds and treasury bills 22,248.8 0.2 249.9 21,999.1
accounting policies/ revisions required to be adopted in the current year. Bankers Acceptance 2,547.0 - 0.3 2,546.7
24,795.8 0.2 250.2 24,545.8
III. Significant accounting policies and note disclosures
The significant accounting policies used in the preparation of these financial
statements, including the accounting requirements of OSFI, are summarized ` in millions
below together with the related disclosures. These accounting policies have December 31, 2016 Amortized Gross Gross Fair value
been applied consistently to all years presented in these financial statements. cost unrealized unrealized of AFS
gains losses securities
1. Cash and deposits with banks Canadian federal & provincial
 Cash and cash equivalents include cash balances on hand and interest bonds and treasury bills 22,530.4 2.3 0.4 22,532.3
bearing and non-interest bearing deposits with regulated financial Bankers Acceptance 5,604.2 - 0.4 5,603.8
institutions with an original maturity of 90 days or less and that are subject
28,134.6 2.3 0.8 28,136.1
to an insignificant risk of changes in their fair value, and are used by the
Bank in the management of its short-term cash commitments. Cash and As at December 31, 2017, no AFS securities were denominated in currencies
cash equivalents are measured at amortized cost. As at December 31, 2017, other than Canadian dollars (2016 - nil).
there were no deposits (2016 - nil) with regulated financial institutions with At each reporting date, the Bank assesses on an individual basis, whether there
an original maturity of over 90 days. is objective evidence that one or more AFS securities are impaired. An AFS

456
notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

security is impaired when objective evidence demonstrates that a loss event The following is a summary of the notional amounts by remaining term to
has occurred after the security’s initial recognition, and that the loss event has maturity of the Bank’s outstanding derivative portfolio, all of which are over-
an impact on the future cash flows of the security that can be estimated reliably. the-counter, as at December 31:
Objective evidence of impairment can include significant financial difficulty of The composition and maturity profile of AFS Securities are as follows:
the borrower or issuer, default or delinquency by a borrower, restructuring of
the security, indications that a borrower or issuer will enter bankruptcy, or the
disappearance of an active market for a security. ` in millions
Impairment losses on AFS securities are recognized by transferring the 2017 2016
cumulative loss that has been recognized in OCI to profit or loss as a Under 1 to 5 Over Total Total
reclassification adjustment. The cumulative loss that is reclassified from OCI to 1 year years 5 years
profit or loss is the difference between the acquisition cost, net of any principal
Trading
repayment, amortization, and the current fair value, less any impairment loss
previously recognized in profit or loss. There were no impairment losses during Forward foreign
2017 (2016 - nil). exchange contracts 8.7 - - 8.7 617.1
Foreign currency
During the year ended December 31, 2013, the Bank had reclassified its 112,529.3
swaps 64,691.1 - - 64,691.1
corporate bonds with a carrying value of `27,118.1 at that time from AFS
securities classification to Loans classification [refer to note 4]. Further, net Interest rate swaps 1,833.4 - - 1,833.4 2,432.1
unrealized gains of `540.2, recognized in the OCI upto the date of reclassification Hedging
of AFS securities to Loans classification are being amortized through interest Bond forwards - - - - -
income using the effective interest rate of the securities reclassified. 66,533.2 - - 66,533.2 115,578.5
The Bank is a member of the Large Value Transfer System (LVTS), Canada’s real
time electronic system for processing payments. The Bank has placed a collateral The following is a summary of the gross fair value of the Bank’s outstanding
of `1,529.0 (2016 - `1,783.8) in the nature of federal and provincial securities derivative portfolio, before credit valuation adjustment (“CVA”) of `0.2 (2016 -
with Bank of Canada to facilitate transactions under LVTS. Further during the `0.4) on positive fair values and of `0.4 (2016 - `2.8) on negative fair values, as
year, the Bank has agreed to partner with Central1 to offer “E-transfer” facility at December 31:
to its customers. E-Transfer is a product offered by the Interac Association and
opted by financial institutions. Using this facility, customers of the Bank will be ` in millions
able to send money to anyone with an email address and a bank account in December 31, 2017 Positive Negative Net fair
Canada, without sharing any other personal financial information. As a part of fair value fair value value
the arrangement, the Bank has placed a collateral in the nature of government Trading
securities of `13.3 (2016 - nil) with Central1 and the product will be available for
use by its customers in early 2018. Forward foreign exchange contracts 0.1 - 0.1
Foreign currency swaps 1,302.3 290.4 1,011.9
HTM securities Interest rate swaps 0.1 0.1 -
HTM securities comprise securities with fixed or determinable payments and Hedging
fixed maturities, that management has the intention and ability to hold to Bond forwards - - -
maturity. They are initially recognized at fair value plus incremental costs directly
1,302.5 290.5 1,012.0
attributable to the acquisition of the security. HTM securities are subsequently
carried at amortized cost using the effective interest method.
` in millions
The Bank did not hold any HTM securities as at December 31, 2017 (2016 - nil).
December 31, 2016 Positive Negative Net fair
fair value fair value value
3. Derivative financial instruments
Trading
In the ordinary course of business, the Bank uses derivative financial instruments,
primarily over-the-counter interest rate derivatives, forward contracts and Forward foreign exchange contracts 0.1 - 0.1
forward currency swaps, to manage its exposure to interest rate and currency Foreign currency swaps 527.3 2,367.1 (1,839.8)
fluctuations, as part of the Bank’s asset liability management program; the Interest rate swaps 8.4 8.4 -
Bank does not undertake proprietary trading positions using derivatives. As per Hedging
requirements of its clients, the Bank offers derivative products such as interest
Bond forwards - - -
rate swaps, foreign currency swaps, etc. to assist them in risk management and
offsets such transactions by entering into derivatives with its Parent or other 535.8 2,375.5 (1,839.7)
counterparty banks and accordingly it has no proprietary market risk exposure The following is the summary of outstanding derivative contracts with the
as a result of entering into these simultaneous contracts. The above instruments Parent and its subsidiaries, as at December 31:
are treated as “trading” derivatives. Further, the Bank manages the interest rate
risk on its secured borrowings by using appropriate hedging instruments, i.e. ` in millions
a bond forwards, to lock the interest cost on these liabilities and mitigate the December 31, 2017 Notional Negative Positive
impact of rising interest costs from the date that it decides to issue the debt amounts fair value fair value
till the date that the debt is actually issued and classifies such derivatives as
Trading
“hedging” derivatives. These hedging instruments have been designated as
the hedging instruments under cash flow hedge relationship to hedge the Forward foreign exchange contracts - - -
benchmark interest rate risk on the highly probable secured borrowings. Foreign currency swaps - - -
Interest rate swaps 916.7 0.1 -
The Bank formally documents all hedging relationships and its risk management
objective and strategy for undertaking these hedge transactions at inception. Hedging - - -
The hedge documentation includes identification of the asset, liability, firm Bond forwards - - -
commitment or highly probable forecasted transaction being hedged, the 916.7 0.1 -
nature of the risk being hedged, the hedging instrument used and the method
used to assess the effectiveness of the hedge. The Bank also formally assesses,
both at each hedge’s inception and on an ongoing basis, whether the hedging ` in millions
instruments are highly effective in offsetting changes in cash flows of hedged December 31, 2016 Notional Negative Positive
items. The change in fair value of the hedging instrument, to the extent effective, amounts fair value fair value
is recorded in OCI until the corresponding gains and losses on the hedged item Trading
is recognized in income. Hedge ineffectiveness is measured and recorded in Forward foreign exchange contracts - - -
“Net trading income – Gain on derivative transactions”, in the statements of Foreign currency swaps - - -
comprehensive income. Interest rate swaps 1,216.0 8.4 -
The trading derivatives are carried at fair value with changes in fair value Hedging - - -
recorded in net trading income in the statements of comprehensive income. Bond forwards - - -
The Bank takes into account its own credit risk and that of the relevant 1,216.0 8.4 -
counterparties when determining the fair value of derivative instruments. As
at December 31, 2017, the fair values of all derivative assets and derivative The table below shows the current replacement cost, credit equivalent
liabilities were `1,302.3 (2016 - `535.4) and `290.1 (2016 - `2,372.7) respectively. amount and risk-weighted amount for derivatives as at December 31. Current

457
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

replacement cost is the positive fair value of outstanding derivative financial In respect of the cash flow hedges undertaken by the Bank, no ineffectiveness
instruments, which represents the Bank’s derivative credit exposure. Credit was required to be recognized in the profit or loss account for the year (2016 -
equivalent amount is the current replacement cost for favourable contracts plus nil). Further, during the year a net loss of `5.8 (2016 - net profit of `141.5) after
an amount for future credit exposure associated with the potential for future taxes, was recognized in OCI in respect of the effective portion of the hedges.
credit exposure. Future credit exposure is calculated using a formula prescribed Based on the expected timing and amounts of the hedged cash flows, pre-
by OSFI. Risk-weighted amounts represent the credit equivalent amount tax gains of `78.6 (2016 - `86.5) have been deferred in AOCI for derivatives
weighted according to the creditworthiness of the counterparty, using factors designated in cash flow hedges and are expected to be reclassified from the
prescribed by OSFI. equity to profit or loss in the following periods:
` in millions ` in millions
December 31, 2017 Current Credit Risk- 2017 2016
replacement equivalent weighted
cost amount amount Less than 1 year (13.4) (10.9)
Trading 1 - 3 years (48.3) (32.2)
Forward foreign exchange 0.1 0.2 0.2 3 - 5 years (16.9) (43.4)
contracts Greater than 5 years - -
Foreign currency swaps 1,302.3 1,949.0 704.1 Total (gains)/ loss (78.6) (86.5)
Interest rate swaps 0.1 0.1 0.1
Hedging The Risk Committee of the Bank has permitted transactions such as forex, spot
Bond forwards - - - & forwards, forex swaps, interest rate swaps, and bond short sell for which the
1,302.5 1,949.3 704.4 Bank can post/ receive collateral. Collateral eligible for posting to counterparty
or receiving from counterparty will be cash and/ or high quality liquid assets
(HQLA). As at December 31, 2017, the Bank has not received any collateral from
` in millions counterparty banks (2016 - `56.3), while the Bank has placed a collateral with a
December 31, 2016 Current Credit Risk- market value of `36.9 (2016 - nil).
replacement equivalent weighted
cost amount amount
Trading
Forward foreign exchange 0.1 6.3 3.8
contracts
Foreign currency swaps 527.3 1,652.4 658.3
Interest rate swaps 8.4 20.3 20.3
Hedging
Bond forwards - - -
535.8 1,679.0 682.4

 he Bank has entered into Credit Support Annex (CSA), a standard document executed to mitigate credit risk in the transactions entered between interbank counterparties.
T
The CSA is a part of the International Swap Dealers Association (ISDA) master agreement between the counterparties. In certain cases, as per the ISDA agreement, the
outstanding transactions may be terminated and a single net amount including pledges is due or payable in settlement of these transactions. Financial assets and financial
liabilities subject to offsetting, enforceable master netting arrangements and similar agreements:

` in millions
December 31, 2017 Related amounts not offset on the balance sheet
Types of financial assets Gross amounts Gross amounts of Net amounts of Financial Financial Net amount
of recognized recognized financial financial assets instruments collateral
financial assets liabilities offset on the presented on the
balance sheet balance sheet
Derivatives held for risk management:
Foreign currency swaps 559.0 - 559.0 (173.0) - 386.0
559.0 - 559.0 (173.0) - 386.0

` in millions
December 31, 2017 Related amounts not offset on the balance sheet
Types of financial liabilities Gross amounts Gross amounts of Net amounts of Financial Financial Net amount
of recognized recognized financial financial liabilities instruments collateral
financial liabilities assets offset on the presented on the
balance sheet balance sheet
Derivatives held for risk management:
Foreign currency swaps 173.0 - 173.0 (173.0) - -
173.0 - 173.0 (173.0) - -

458
notes to financial statements
(In millions of Indian Rupees)
forming part of financial statements
December 31, 2016
Types of financial assets Gross amounts
of recognized
financial assets
Derivatives held for risk management:
Foreign currency swaps 237.6
237.6
December 31, 2016
Types of financial liabilities Gross amounts
of recognized
financial liabilities
Derivatives held for risk management:
Foreign currency swaps 730.7
730.7
4. Loans
Loans are measured upon initial recognition at fair value plus directly attributable
incremental transaction costs. Loans are subsequently measured at amortized
cost using the effective interest method, net of allowance for impairment. The
amortized cost is the amount at which a loan is measured at initial recognition,
minus principal repayments, plus or minus the cumulative amortization using the
effective interest method of any difference between the initial amount recognized
and the maturity amount, minus any reduction for impairment. The carrying
amounts of the loan balances represent the Bank’s maximum exposure to credit
risk thereon before considering any collateral and other credit enhancements.
Interest, fee and commission income:
Interest income is recognized in the statements of comprehensive income using
the effective interest method. The effective interest rate is the rate that exactly
discounts the estimated future cash payments and receipts through the expected
life of the loan (or, where appropriate, a shorter period) to the carrying amount of
the loan. When calculating the effective interest rate, the Bank estimates future
cash flows considering all contractual terms of the loan, but not future credit losses.
The calculation of the effective interest rate includes all transaction costs and fees
and points paid or received that are an integral part of the effective interest rate.
Transaction costs include incremental costs that are directly attributable to the
acquisition or issue of the loans. The effective interest rate is established at the
time of initial recognition of the loans and is not revised subsequently, except for
variable rate loans.
Loan fees received from commercial clients for term loans, demand loans,
mortgages and operating lines of credit that are considered integral to the effective
interest rate on respective loans are included in the measurement of the effective
interest rate, and thereby recognized into income over the term of the respective
loans.
Non-refundable loan fees received from commercial clients for facilities that are
not approved are recorded in income at the point at which the Bank has no further
performance obligations.
Impairment
At each reporting date, the Bank assesses whether there is objective evidence
that loans are impaired. Loans are classified as impaired and impairment losses
are incurred only if there is objective evidence of impairment as a result of one or
more events that occurred after the initial recognition of the loan (a “loss event”)
and that loss event (or events) has an impact on the estimated future cash flows of
the loan that can be reliably estimated.
The criteria that the Bank uses to determine that there is objective evidence of an
impairment loss include:
(a) significant financial difficulty of the issuer or obligor;
(b) a breach of contract, such as a default or delinquency in interest or principal
payments;
(c) the Bank granting to the borrower, on account of the borrower’s financial
difficulty, a concession that the Bank would not otherwise consider;
(d) it becomes probable that the borrower will enter bankruptcy or other financial
reorganization; and
(e) observable data indicating that there is a measurable decrease in the estimated
future cash flows from a portfolio of loans since the initial recognition of those
loans, although the decrease cannot yet be identified with the individual loans
in the portfolio, including:
(i) adverse changes in the payment status of borrowers in the portfolio; and
(ii) national or local economic conditions that correlate with defaults on the
loans in the portfolio.
supplementary
financial information
Continued
` in millions
Related amounts not offset on the balance sheet
Gross amounts of Net amounts of Financial Financial Net amount
recognized financial financial assets instruments collateral
liabilities offset on the presented on the
balance sheet balance sheet
- 237.6 (237.6) - -
- 237.6 (237.6) - -
` in millions
Related amounts not offset on the balance sheet
Gross amounts of Net amounts of Financial Financial Net amount
recognized financial financial liabilities instruments collateral
assets offset on the presented on the
balance sheet balance sheet
- 730.7 (237.6) - 493.1
- 730.7 (237.6) - 493.1
An allowance for impairment is maintained at a level that management considers
adequate to absorb identified credit-related losses that are identifiable for
individual loans, as well as losses that have occurred but have not yet been
identified on individual loans in a portfolio.
To ensure that any impairment is identified on a timely basis, the Bank’s loans are
reviewed regularly for their credit quality, taking into consideration all available
information. When substantive information suggests any significant deterioration in
the credit quality of a loan or a portfolio of loans, the credit or credits are reviewed
immediately, even if a regularly scheduled review is not due.
The Bank considers evidence of impairment for loans and advances both at an
individual asset and collective level. All individually significant loans and advances
are assessed for impairment on an individual basis. All individually significant
loans and advances found not to be specifically impaired are then collectively
assessed for any impairment that has been incurred but not yet identified at an
individual loan level. Loans and advances that are not individually significant are
collectively assessed for impairment by grouping together loans and advances
with similar risk characteristics. In assessing collective impairment, the Bank uses
historical trends of the probability of default, timing of recoveries and the amount
of loss incurred, adjusted for management’s judgement as to whether current
economic and credit conditions are such that the actual losses are likely to be
greater or less than suggested by historical loss modeling.
Default rates, loss rates and the expected timing of future recoveries are
benchmarked against actual outcomes to ensure that they remain appropriate.
Impairment losses on loans and advances are measured as the difference between
the carrying amount of the financial asset and the present value of estimated
future cash flows discounted at the asset’s original effective interest rate.
Impairment losses are recognized in profit or loss and reflected in an allowance
account against loans and advances. Interest on impaired assets continues to be
recognized although an allowance may be established to the extent it may not be
recovered. When a subsequent event causes the amount of impairment loss to
decrease, the decrease in impairment loss is reversed through profit or loss. The
Bank writes off loans and advances when they are determined to be uncollectible.
Loans for which interest and principal is contractually past due 90 days are
generally determined to be impaired, unless management determines that the
loan is fully secured, in the process of collection, and the collection efforts are
reasonably expected to result in either payment of the loan or restoring it to a
current status within 180 days from the date payment has become contractually in
arrears. An exception to these conditions is made for not more than 365 days from
the date a loan is contractually in arrears where the loan is guaranteed or insured
by a Canadian Government (federal or provincial) or a Canadian Government
agency, the validity of the claim is not in dispute and, as a consequence, the lender
has reasonable assurance of collection of the full principal and interest, including
full compensation for any overdue payments calculated at the loan’s contractual
interest rate.
The Bank follows a two-tier risk rating system for credits, consisting of a borrower/
obligor risk rating (“BRR”) and a transaction risk rating (“TRR”).
With respect to commercial & corporate loans, commercial mortgages as
defined in its Corporate and Commercial Credit and Recovery Policy (“CCCRP”)
and insured residential mortgages, borrowers/obligors are risk rated using
general corporate or sector specific scorecards by assigning a fourteen grade
classification system (1 up to 8) to reflect the probability of default. The TRR is then
determined by adjusting the BRR to reflect collateral assessment as per the loss
given default framework and the TRR framework. Credits with a BRR 1 through
4C are considered “Satisfactory”, BRR 5 considered “Especially mentioned” and
BRR 6 treated as “Substandard”. The following table presents the gross loans
outstanding as at December 31, that were neither past due nor impaired:
459
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

` in millions ` in millions
2017 2016 December 31, 2017 Gross Collective Specific Deferred Net
amount allowance allowance loan fees amount
Borrower Risk Rating categories
Securitized residential
Satisfactory (RR 1 through 4) 258,085.3 273,590.3
mortgages 149,069.2 (2.7) - - 149,066.5
Especially mentioned (RR 5) 9,422.3 16,137.8
Personal 2,064.5 (3.1) (2.3) - 2,059.1
Substandard (RR 6) 2,843.7 714.6 294,346.8 (825.9) (9,174.8) (500.3) 283,845.8
270,351.3 290,442.7 Undrawn commitments
and other credit
Further, as defined in the Retail Credit and Recovery Policy (“RCRP”), with
instruments
respect to retail loans (incl. credit card exposures) and conventional residential
mortgages, each borrower is classified into one of the four risk score buckets –
Commercial@ 33,444.4 (4.9) - - 33,439.5
Low risk (‘BRR A’), Medium risk (‘BRR B’), High risk (‘BRR C’) and Default (‘BRR Personal 6,140.3 - - - 6,140.3
D’) – to reflect the probability of default. The TRR is then determined by adjusting
39,584.7 (4.9) - - 39,579.8
the borrower/obligor risk rating to reflect collateral assessment as per LGD and
TRR framework. The following table presents the gross loans outstanding as at
December 31, that were neither past due nor impaired: ` in millions
` in millions December 31, 2016 Gross Collective Specific Deferred Net
2017 2016 amount allowance allowance loan fees amount
Borrower Risk Rating categories Commercial &
Low (RR A) 9,730.5 211.2 corporate loans and
commercial mortgages 122,680.1 (681.6) (10,976.7) (476.8) 110,545.0
Medium (RR B) 2,744.1 23.1
Conventional
High (RR C) 630.0 -
residential mortgages 128.3 (1.0) - - 127.3
13,104.6 234.3
Insured residential
For commercial & corporate loans, commercial mortgages and residential mortgages 22,151.5 (1.7) - - 22,149.8
mortgages, an exposure rated BRR 7 is closely monitored. Exposures rated
Securitized residential
BRR 8 are internally classified as “Default and impaired” where losses are
mortgages 157,647.9 (3.9) - - 157,644.0
identifiable on an individual basis with a specific allowance established against
each exposure. As at December 31, 2017, gross loans outstanding in BRR 7 and Personal 2,488.9 (0.8) (0.7) - 2,487.4
BRR 8 amounted to ` 9,933.9 (2016 - ` 13,173.8). For the year ended December 305,096.7 (689.0) (10,977.4) (476.8) 292,953.5
31, 2017, an amount of ` 85.1 (2016 - ` 361.9) is included as interest income
from loans relating to such exposures. In respect of retail loans (incl. credit Undrawn commitments
and other credit
card exposures) as at December 31, 2017, gross loans outstanding in BRR D
instruments
amounted to ` 2.3 (2016 - ` 0.7).
Commercial@ 29,325.9 (1.3) - - 29,324.6
Based on an assessment of these loans, the following table indicates the amount
of specific provisions created in respect of these loans: Personal 3,974.8 - - - 3,974.8
` in millions 33,300.7 (1.3) - - 33,299.4
2017 2016
@ provision included in accounts payable and other liabilities.
Gross Specific Gross Specific
Loans allowance loans allowance Unfunded commitments can be drawn at any time during the term of the facility
and the Bank manages its liquidity based on expected withdrawals.
Personal loans 2.3 2.3 0.7 0.7
Commercial & corporate Reclassified Financial assets - available for sale securities reclassified to loans
loans and commercial During the year ended December 31, 2013, the Bank had reclassified its
mortgages 9,933.9 9,172.5 11,902.0 10,976.7 corporate bonds from AFS securities classification to Loans classification. The
9,936.2 9,174.8 11,902.7 10,977.4 reclassified securities met the definition of loans and receivables (“L&R”) at
the date of reclassification and the Bank intends to hold these securities for
The following table presents the carrying value of loans as at December 31, that foreseeable future. The reclassifications were made with effect from December
were past due but not classified as impaired: 1, 2013 at fair value at that date. The net unrealized fair value gains recognized
` in millions in the OCI are being amortized into interest income using the effective interest
rate of the instrument reclassified.
2017 2016
The following table presents the details in respect of the reclassified bonds at
Commercial & Residential Commercial & Residential
corporate loans & securitized corporate loans & securitized the reclassification date:
and commercial residential and commercial residential ` in millions
mortgages mortgages mortgages mortgages
and personal and personal 2013
loans loans Carrying value 27,118.1
1 - 30 days - 369.0 - 573.0 Unrealized fair value gains in OCI 540.2
31 - 60 days - 12.4 - 108.3 Effective interest rates:
61 - 90 days - 14.9 - 10.6 - Upper range 7.3%
Above 90 days - 58.1 - 76.5 - Lower range 2.8%
- 454.4 - 768.4 Expected recoverable cash flows 34,080.2

The composition of the loan portfolio as at December 31 is as follows: The following table presents the carrying and fair values for the reclassified
` in millions bonds as at December 31:
December 31, 2017 Gross Collective Specific Deferred Net
` in millions
amount allowance allowance loan fees amount
Commercial & corporate 2017 2016
loans and commercial
mortgages 120,704.4 (781.4) (9,172.5) (500.3) 110,250.2 Carrying Fair Carrying Fair
value value value value
Conventional residential
mortgages 12,933.7 (38.5) - - 12,895.2 AFS securities
2,913.8 2,944.7 8,832.3 8,841.9
Insured residential reclassified to loans
mortgages 9,575.0 (0.2) - - 9,574.8
The table below shows the pre-tax amounts that would have been recognized in
profit or loss and OCI if the reclassification had not been made:

460
notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

` in millions ` in millions
2017 2016 2017 2016
Profit or OCI Profit or OCI
loss loss Canada:
Interest income - - - - Commercial and corporate loans and
Net increase/ (decrease) commercial mortgages 78,080.6 81,460.1
in fair value - 49.7 - 410.6 Conventional residential mortgages 12,933.7 128.3
Amortization of Insured residential mortgages 9,575.0 22,151.5
net unrealized gain Securitized residential mortgages 149,069.2 157,647.9
deferred in OCI - 3.9 - 99.3 Personal 2,064.5 2,488.9
- 53.6 - 509.9 251,723.0 263,876.7
The table below shows the amount of pre-tax contribution recognized in profit Allowance for impairment (820.0) (1,927.5)
or loss and OCI in respect of the financial assets which have been reclassified: 250,903.0 261,949.2
India:
` in millions
2017 2016 Commercial and corporate loans and
Profit or OCI Profit or OCI commercial mortgages 9,973.4 10,990.2
loss loss Allowance for impairment (9,118.9) (9,665.6)
Interest income @ 179.8 - 426.2 - 854.5 1,324.6
Provision for credit Other:
losses, net 25.4 - 116.0 -
Commercial and corporate loans and
Amortization of
commercial mortgages 32,150.1 29,753.0
net unrealized gain
deferred in OCI - (3.9) - (99.3) Allowance for impairment (61.8) (73.3)
205.2 (3.9) 542.2 (99.3) 32,088.3 29,679.7
@ included as interest income on loans. 283,845.8 292,953.5

Impairment analysis for debt instruments required by IAS 39 continues even The total fair value of loans at December 31, 2017 is ` 281,140.0 (2016 -
after reclassification and impairment losses, if any, are taken as a charge to the ` 290,410.6), of which the fair value of loans relating to Canada is ` 248,261.7(2016
profit or loss. While AFS securities are also assessed for impairment under IAS - ` 259,470.9), India is ` 790.1(2016 - ` 1,260.0) and other geographies is
39, per the Bank’s policy this assessment is only carried out on an individual ` 32,088.2(2016 - ` 29,679.7).
security basis and not on a collective basis. For instruments reclassified to The following table summarizes industry wise distribution of the Bank’s loan
L&R, collective impairment charge in profit or loss is recorded for securities portfolio, net of allowances for impairment and deferred loan fees, by category
that are not individually impaired. If a reclassified financial asset subsequently of borrower as at December 31:
is assessed as being individually impaired, then the gain or loss that was
previously recognized in OCI is reclassified to profit or loss immediately on a ` in millions
proportionate basis.
2017 2016
Undrawn commitments and other contingent liabilities include an unused
Residential mortgages 171,577.9 179,927.7
portion of commercial and personal mortgages and lines of credit, letters of
credit facility to commercial clients, import bills for collection and standby Personal loans 2,064.5 2,488.9
letters of credit and bank guarantees. 173,642.4 182,416.6
During the year ended December 31, 2017, loan balances amounting to Allowance for loan losses (46.8) (8.1)
` 1,176.3 were written off (2016 - nil). The following is a summary of the changes
Net retail loans 173,595.6 182,408.5
in the allowance for impairment for the year ended December 31:
Accommodation and food services 5,720.9 3,962.5
` in millions
Admin & Support, Waste Mgmt and Remediation 6,957.5 7,267.6
2017 2016
Agriculture, forestry, fishing and hunting 632.2 -
Collective Specific Total Total
Arts, entertainment and recreation 2,549.1 1,931.6
Balance, beginning
689.0 10,977.4 11,666.4 5,285.9 Construction 7,872.1 8,201.3
of year
Finance & Insurance 1,428.7 131.9
Provision for credit
81.2 (163.7) (82.5) 6,169.0
losses @ General merchandise stores 524.8 -
Effect of discounting 70.3 - 70.3 211.5 Health care and social assistance 1,932.0 1,994.5
Foreign exchange Information and Cultural Industries 11,138.8 11,644.9
(14.6) (462.6) (477.2) -
movements Manufacturing 26,935.7 34,201.2
Write-offs - (1,176.3) (1,176.3) - Mining, Quarrying and Oil and Gas Extraction 6,349.5 12,200.2
Balance, end of year 825.9 9,174.8 10,000.7 11,666.4 Professional, Scientific, & Technical Services 5,826.5 5,282.2
@ excludes provision of ` 3.6 (2016 - reversal of ` 0.3) during the year on other credit Pipeline transportation 688.0 -
instruments.
Real Estate and Rental and Leasing 13,397.0 7,609.8
As at December 31, 2017, the Bank held loans, net of allowances, denominated
Retail Trade 9,600.2 7,690.4
in U.S. dollars and Euros of ` 64,022.7 (U.S. $1,001,363) and ` 679.4 (€ 8,856)
respectively. Scientific and technical consulting services 255.7 -
As at December 31, 2016, the Bank held loans, net of allowances, denominated Transportation & Warehousing 5,974.4 6,108.8
in U.S. dollars and Euros of ` 65,495.9 (U.S. $957,113) and ` 935.5 (€ 12,955) Utilities 8,845.0 8,868.4
respectively.
Wholesale Trade 3,954.8 5,509.1
At December 31, 2017, ` 254,793.7 (2016 - ` 273,131.2) of loans are expected to
be recovered more than 12 months after the reporting date. 120,582.9 122,604.4

 n analysis of the Bank’s loan portfolio, net of allowances for impairment and
A Deferred loan fees and premium (378.8) (401.1)
deferred loan fees, by category and by location of ultimate risk as at December Allowance for loan losses (9,953.9) (11,658.3)
31, is as follows: Net corporate & commercial loans 110,250.2 110,545.0

Total loans and acceptances net of allowance for
283,845.8 292,953.5
loan losses

461
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

5. Property and equipment 7. Deposits
Property and equipment are carried at cost less accumulated depreciation, Deposits are measured upon initial recognition at their fair value less directly
which is provided by using the straight-line method over the estimated useful attributable incremental transaction costs. Deposits are subsequently measured
lives of the assets. The estimated useful lives, residual values and depreciation at amortized cost using the effective interest method. Deposit balances for
method are reviewed annually, with the effect of any changes in estimate current, savings and term deposits are shown below:
accounted on a prospective basis.
` in millions ` in millions
2017 2016 Payable on
Useful Cost Accumulated Net book Net book demand
life depreciation value value December 31, 2017 Interest Non- Payable Payable Total
Computer hardware
3 years 104.0 85.9 18.1 22.9 bearing interest after on fixed
and software bearing notice date
Furniture, fixtures and Personal 9,241.3 - 19,944.8 13,367.9 42,554.0
equipment
5 years 184.3 164.6 19.7 27.8
Commercial 1,668.8 3,268.9 2,222.2 545.0 7,704.9
Leasehold Lease Broker:
improvements 141.6 124.6 17.0 15.1
term Personal - - 5,535.4 74,130.3 79,665.7
429.9 375.1 54.8 65.8 Commercial - - - - -
The movement in balances of property and equipment was as follows: 10,910.1 3,268.9 27,702.4 88,043.2 129,924.6
` in millions
Computer Furniture, Leasehold Total ` in millions
hardware fixtures and improve- Payable on
and software equipment ments demand
Acquisition cost December 31, 2016 Interest Non- Payable Payable Total
Opening balance at bearing interest after on fixed
January 1, 2017 96.6 180.2 134.8 411.6 bearing notice date
Acquisitions 7.4 5.3 6.8 19.5 Personal 5,200.4 - 20,359.8 14,953.5 40,513.7
Disposals - - - - Commercial 1,831.3 4,399.4 2,134.3 724.1 9,089.1
Assets written off - (1.2) - (1.2) Broker:
Closing balance at Personal - - 8,721.6 72,310.6 81,032.2
104.0 184.3 141.6 429.9 Commercial - - - - -
December 31, 2017
7,031.7 4,399.4 31,215.7 87,988.2 130,635.0

` in millions The maturity profile of deposits payable on fixed date, as at December 31, is as
Computer Furniture, Leasehold Total follows:
hardware fixtures and improve-
` in millions
and software equipment ments
Accumulated depreciation 2017 2016
and impairment losses Under 1 year 36,704.2 31,606.8
Opening balance at January 1 - 5 years 51,339.0 56,381.4
1, 2017 (73.7) (152.4) (119.7) (345.8) Total 88,043.2 87,988.2
Depreciation (12.2) (13.4) (4.9) (30.5)
Assets written off - 1.2 - 1.2 The Bank sources certain deposits through the use of brokers. Upon the
Closing balance at (85.9) (164.6) (124.6) (375.1) placement of a deposit with the Bank, the broker earns a commission, which
December 31, 2017 the Bank amortizes over the life of the related deposit. As at December 31, 2017,
the Bank had unamortized broker commissions on deposits of ` 344.4 (2016 -
` in millions `335.2) included in the above balances. There is no single depositor in excess
Computer Furniture, Leasehold Total of 0.3% (2016 - 0.3%) of the total liabilities.
hardware fixtures and improve-
and software equipment ments 8. Accounts payable and other liabilities
Acquisition cost ` in millions
Opening balance at December 31, December 31,
January 1, 2016 73.6 179.6 129.5 382.7 2017 2016
Acquisitions 24.1 1.8 5.7 31.6
Disposals - - - - Unappropriated loan repayment 911.1 59.5
Assets written off (1.1) (1.2) (0.4) (2.7) Accounts payable 598.1 502.7
Closing balance at 96.6 180.2 134.8 411.6 Deferred income 36.2 36.8
December 31, 2016 Other 187.7 4.4

1,733.1 603.4
` in millions
Computer Furniture, Leasehold Total
9. Foreign currency translation
hardware fixtures and improve-
and software equipment ments Monetary assets and liabilities denominated in foreign currencies are translated
Accumulated depreciation into Canadian dollars using the Bank of Canada exchange rates at the reporting
and impairment losses date. Revenue and expense amounts denominated in foreign currencies are
Opening balance at translated using average monthly exchange rates. Realized and unrealized
January 1, 2016 (63.8) (139.2) (116.1) (319.1) gains and losses resulting from translation are included in the statements of
Depreciation (11.0) (14.3) (4.0) (29.3) comprehensive income under “Other Income, Foreign exchange gain, net”.
Assets written off 1.1 1.1 0.4 2.6
10. Securitization of mortgages
Closing balance at (73.7) (152.4) (119.7) (345.8)
December 31, 2016 The Bank has entered into securitization arrangements in respect of its originated
and purchased (originated by third parties) mortgages, to issue National
There were no capitalized borrowing costs related to the acquisitions of property Housing Act Mortgage-backed Securities (“NHA-MBS”) and also participates
and equipment for the years ended December 31, 2017 and 2016.
in Canada Mortgage Bonds (“CMB”) program as a seller. The NHA MBSs are
6. Other assets backed by pools of amortizing residential mortgages insured by the Canada
Mortgage and Housing Corporation (“CMHC”) or approved third party insurers.
` in millions
The CMB, guaranteed by CMHC, is a semi-annual coupon, bullet-maturity bond.
December December CMBs are issued by a special purpose trust, known as Canada Housing Trust.
31, 2017 31, 2016
Prepaid expenses, deposits and accounts receivable 1,214.4 1,092.5 For mortgages securitized and sold into the CMB program, the Bank retains
substantially all the risks and rewards, comprising primarily prepayment
Receivable on account of Mortgage-backed
risk related to ownership of these mortgages and hence, these mortgage
securities ("MBS") pool collections 124.7 72.1
securitizations do not qualify for derecognition accounting under International
Advance taxes paid 24.7 795.2
Accounting Standard 39, Financial Instruments: Recognition and Measurement
Others 23.8 12.9
(“IAS 39”). For mortgages that are securitized and the resulting MBS from which
1,387.6 1,972.7
are sold outside of the CMB program, the Bank has determined that it neither
transfers nor retains substantially all the risks and rewards associated with the
462
notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

ownership of these mortgages. However, the Bank retains control over these The Bank also provides various operations and other support services to the
mortgages and hence, it continues to recognize the mortgages securitized. For New York Branch of ICICI Bank Limited pursuant to service level agreements.
all mortgage securitizations, the amounts received through securitization and During the year ended December 31, 2017, the Bank has earned a revenue
sale are recognized as “Secured borrowings”. of ` 11.7 (2016 - ` 15.4), net of taxes, of which ` 0.9 (2016 - ` 3.0) was
As required under the CMB program, the Bank, as an issuer, has undertaken receivable as at December 31, 2017. During the year, the Bank has provided
to remit monthly to the Central Payor and Transfer Agent (the “CPTA”) the specified correspondent banking services to the parent bank and has earned
payments of principal and interest accrued and due on the mortgage loans in a revenue of ` 0.2 (2016 - ` 0.1). Deposits from Banks include an amount of
the pools. The Bank has also undertaken to make the payments to the CPTA on ` 53.3 (2016 - ` 16.7) maintained by the parent bank in the correspondent
the due dates even if the corresponding amounts have not been received and bank account.
collected by the Bank in respect of the pools. In the normal course of business, the Bank enters into trade arrangements
The following table presents the movement in the gross balance of securitized to participate in offering stand-by letters of credit facilities based on counter-
residential mortgages during the year ended December 31: guarantees received or offered to the New York Branch of the Parent. These
transactions fall within the purview of “permitted transactions” under the
` in millions Bank Act. As at December 31, 2017, there are no trade or other advances
which were supported by a letter of undertaking issued by the Parent on
2017 2016 behalf of its clients in the normal course of business (2016 - nil). Further, as
Balance, beginning of year 157,648.0 148,812.7 at December 31, 2017, the Bank has issued performance guarantees of `
Add: Mortgage pools securitized 33,463.4 49,534.3 647.6 (2016 - ` 392.7) for which it has received counter-guarantees from the
Parent. For the year ended December 31, 2017, the Bank has earned a net
191,111.4 198,347.0 income of ` 0.5 (2016 - ` 0.6) on such transactions and an amount of ` 0.4
Less: Repayment of mortgages in the pool 41,539.6 40,162.1 (2016 - ` 0.5) is receivable.
Amortization of premium 502.6 536.9
(b) Key management personnel
Balance, end of year @ 149,069.2 157,648.0  Key management personnel (“KMP”) are those persons who have the
@ excludes provision of ` 2.7 (2016 - ` 4.0) on securitized residential mortgages. authority and responsibility for planning, directing and controlling the
At December 31, 2017, ` 129,810.1 (2016 - ` 144,838.2) of securitized mortgages activities of the Bank, directly or indirectly, and comprise the directors of
are expected to be recovered more than 12 months after the reporting date. the Bank, the Chief Executive Officer (“CEO”) and all direct reports of the
CEO. The definition of KMP in IAS 24 Related Party Disclosures, specifies
The following table presents the movement in the secured borrowings balance a role and is not limited to a person. KMP include directors (both executive
during the year ended December 31: and non-executive) and other members of the management team with
significant authority and responsibility for planning, directing and controlling
` in millions
the Bank’s activities.
2017 2016
The following table summarizes the compensation paid to the KMP in
Balance, beginning of year 155,659.7 146,869.8 respect of short-term and other post-employment benefits, during the year
Add: Proceeds of MBS/ CMB issued, net of pooling ended December 31:
fee and expenses 32,955.0 48,635.3
` in millions
Amortization of pool fees and expenses 305.8 316.7
2017 2016
188,920.5 195,821.8
Short-term employee benefits 139.2 116.1
Less: Repayment of borrowings 41,539.6 40,162.1
Post-employment benefits 8.4 8.2
Balance, end of year 147,380.9 155,659.7
147.6 124.3

The maturity profile of the pools of secured borrowings as at December 31, is as In addition, personnel expenses include the cost of stock options granted
follows: to employees of the Bank, primarily KMP, under the Employee Stock Option
Plan of the Parent. During the year ended December 31, 2017, an amount of
` in millions
` 64.9 (2016 - ` 62.6) has been expensed as employee benefits and recorded
2017 2016 as paid-in-capital.
Under 1 year 17,910.3 11,216.5
12. Share capital
1 - 5 years 129,470.6 144,443.2
The Bank is authorized to issue an unlimited number of common shares without par
Total 147,380.9 155,659.7 value and an unlimited number of non-voting preferred shares without par value.
The following table provides the fair value of the assets, the associated liabilities December 31, 2017 December 31, 2016
and the net position in respect of the mortgage securitizations that do not Number Amount Number Amount
qualify for derecognition: of Shares ` in millions of shares ` in millions
` in millions Common shares 839,500,000 29,024.6 839,500,000 32,337.3
2017 2016 Preferred shares:
Fair value of securitized residential mortgage assets 146,023.0 155,292.1 Series A - - 10,000,000 509.7
Fair value of associated secured borrowings 143,857.7 152,947.3 Series B - - 509,280 648.9
Fair value of net position 2,165.3 2,344.8 Series C - - 600,000 764.5
Series D - - 716,288 912.5
11. Related party transactions - 2,835.6
(a) Parent and other related parties The Bank had issued the common and preferred shares shown above for cash
The Bank incurred no interest expense related to short-term borrowings consideration to the Parent. During the year ended December 31, 2017, the
from the Parent or its subsidiaries during the year ended December 31, 2017 Bank repatriated in cash, by way of ‘stated capital reduction’, an amount of
(2016 - nil). Further, during the year ended December 31, 2017, no dividend ` 3,312.7 (2016 - ` 2,548.3) to its common shareholders’ after receiving necessary
(2016 - nil) was received on the common share investment of ` 4.3 [£50] approvals from OSFI.
(2016 - ` 4.2) in ICICI Bank UK PLC.
During the year ended December 31, 2017, the Bank redeemed its entire
The Bank transacts with the Parent in the normal course of business for preference share capital of ` 2,835.6 (i.e. 10,000,000 shares of “Series A” totaling
various treasury products, and for various services pursuant to service ` 509.7, 509,280 shares of “Series B” totaling ` 648.9, 600,000 shares of “Series
level agreements, including legal, call center, information technology C” totaling ` 764.5 and 716,288 shares of “Series D” totaling ` 912.5) after
system development and maintenance, treasury control and services receiving OSFI’s approval.
group (“TCSG”), branch operations, credit card processing and monitoring,

During the year ended December 31, 2016, the Bank redeemed ` 1,890.4 of its
internet banking development and maintenance and internal audit services.
preference share capital (i.e. the entire 1,200,000 shares of “Series E” totaling
For the year ended December 31, 2017, the Bank incurred costs of ` 176.7
` 1,529.0 and 283,712 shares of “Series D” totaling ` 361.4) after receiving OSFI’s
(2016 - ` 124.5) related to these services, of which ` 40.9 (2016 - ` 32.1)
approval.
remains payable at the year-end. These transactions are in the normal
course of operations and are pursuant to formal agreements between the 
No dividends have been paid on common shares and on preferred shares
parties. Note 3 provides a summary of outstanding derivative contracts during the year ended December 31, 2017. During the year ended December 31,
transacted with related parties. 2016, the Bank has declared and paid a dividend of ` 0.001 per share amounting

463
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

to ` 764.5 on its common shares and a total of ` 170.2 was declared and paid on 15. Net trading income
the preferred shares ( ` 0.0005 per share on Series A preferred shares, ` 0.0892 ` in millions
per share on Series B and Series C preferred shares and ` 0.0922 per share on
Series D preferred shares). 2017 2016

During the year ended December 31, 2017, an amount of ` 64.9 (2016 - ` 62.6) Gain on derivative transactions (4.4) 1.0
has been expensed as employee benefits and recorded as paid-in capital. This (4.4) 1.0
amount represents the cost of the stock options granted to the employees of the
Bank under the Employee Stock Option Plan of the Parent. 16. Other income
` in millions
13. Income taxes
2017 2016
 Income tax expense comprises current and deferred tax. Current tax and
deferred tax are recognized in profit or loss except, to the extent that they relate Realized gain/ (loss) on sale of non-trading securities 75.8 445.8
to items recognized directly in equity or in OCI.
Foreign exchange gain, net (75.5) 90.5
The Bank’s income taxes for the year ended December 31, are summarized as
follows: Other 7.6 0.2
` in millions 7.9 536.5
2017 2016
17. Other expenses
Current income tax expense/ (recovery) 744.3 (519.5) ` in millions
Deferred tax expense/ (recovery) 8.0 (130.0) 2017 2016
752.3 (649.5) Call center and outsourcing 222.3 169.9
Professional fees 170.3 136.1
Current tax is the expected tax payable or receivable on the taxable income
or loss for the year, using tax rates enacted or substantively enacted at the General and administrative 147.3 129.8
reporting date, and any adjustment to tax payable in respect of previous years.
Occupancy 111.2 109.7

The following table reconciles income taxes at the combined Canadian federal
and provincial statutory rate with the income tax expense in the financial Data processing fees 84.5 75.8
statements as at December 31: Marketing and business development 38.8 28.0
` in millions
Travel, moving and entertainment 38.2 38.4
2017 2016
Communication 25.1 24.8
Income tax expense/ (recovery) at statutory tax rate 729.5 (666.2)
Capital and other taxes 0.2 0.5
Permanent differences 18.3 17.7
Other 4.5 (1.0) 837.9 713.0

Income taxes 752.3 (649.5) 18. Employee future benefits

Deferred tax asset/ liability is recognized in respect of temporary differences  The Bank has a defined contribution group retirement savings plan for its
between the carrying amounts of assets and liabilities for financial reporting employees. Under the plan, employees are allowed to contribute a portion of
purposes and the amounts used for taxation purposes. Deferred tax is measured their annual salary to the plan and the Bank matches such contributions up to
at the tax rates that are expected to be applied to the temporary differences 5% of the employee’s annual salary. The amount of the benefit expense for the
based on management’s assumptions regarding the expected timing of the year ended December 31, 2017 was ` 21.7 (2016 - ` 21.3) and is included in
reversal and on the laws that have been enacted or substantively enacted by personnel expenses in the statements of comprehensive income.
the reporting date. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit 19. Financial instruments
will be realized.
IFRS 13 defines fair value as the price that would be received to sell an asset or
Significant components of the Bank’s deferred tax asset/(liability), as at paid to transfer a liability in an orderly transaction between market participants
December 31 are as follows: at the measurement date (i.e. an exit price). As a result, an entity’s intention
` in millions to hold an asset or to settle or otherwise fulfil a liability is not relevant when
measuring fair value.
2017 2016
IFRS 13 describes a fair value hierarchy that categorizes into three levels
Allowance for impairment 463.2 473.8 the inputs to valuation techniques used to measure fair value. The fair value
Deferred loan & trade fees 132.6 126.4 hierarchy gives the highest priority to quoted prices (unadjusted) in active
markets for identical assets or liabilities (Level 1 inputs) and the lowest priority
Property and equipment 10.4 11.6 to unobservable inputs (Level 3 inputs). The Bank measures fair values using the
Deferred broker commission (153.5) (150.9) following fair value hierarchy, which reflects the significance of the inputs used
in making the measurements:
Other items 1.6 1.5

Level 1 – inputs that are quoted market prices (unadjusted) in active markets for
Net deferred tax asset 454.3 462.4 identical instruments.
L
 evel 2 – inputs other than quoted prices included within Level 1 that are
14. Fee and commission income
observable, either directly (i.e. as prices) or indirectly (i.e. derived from prices
` in millions for the asset or liability). This category includes instruments valued using:
2017 2016 quoted market prices in active markets for similar instruments; quoted prices
for identical or similar instruments in markets that are considered less than
Commercial loan fees 143.2 120.9 active; or other valuation techniques in which all significant inputs are directly
Trade finance, other service fees and charges 335.4 242.9 or indirectly observable from market data.

Level 3 – one or more significant inputs used in a valuation technique are
478.6 363.8
unobservable in determining fair values of the instruments. Valuation is based
on valuation techniques or models which use significant market unobservable
inputs or assumptions. Financial instruments are considered Level 3 when
their values are determined using pricing models, discounted cash flow
methodologies or similar techniques and at least one significant model
assumption or input is unobservable and when determination of the fair value
requires significant management judgement or estimation.

464
notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

As at December 31, the estimated fair values of cash & deposits with banks, The book values, i.e., amortized cost, and fair values for fixed rate loans and
banker’s acceptances, variable rate loans & mortgages, other assets, demand mortgages, deposits and secured borrowings at December 31, are as follows:
deposits and accounts payable & other liabilities approximate their book values.
The table below analyses financial instruments measured at fair value on a ` in millions
recurring or non-recurring basis by the level in the fair value hierarchy into 2017 Book Fair Fair value Level 1 Level 2 Level 3
value value over/
which the fair value measurement is categorized. The amounts are based on the
(under)
values recognized in the statement of financial position: book value
` in millions Fixed-rate loans
December 31, 2017 Level 1 Level 2 Level 3 Total and mortgages 162,849.2 160,143.4 (2,705.8) - 28,875.6 131,267.8
Fixed-rate deposits 88,043.2 89,434.8 1,391.6 - - 89,434.8
Securities 21,999.1 - - 21,999.1
Secured borrowings 107,684.3 104,161.1 (3,523.2) - - 104,161.1
Derivative assets1 0.1 1,302.4 - 1,302.5
Derivative liabilities1 - 290.5 - 290.5 ` in millions
2016 Book Fair Fair value Level 1 Level 2 Level 3
` in millions value value over/
December 31, 2016 Level 1 Level 2 Level 3 Total (under)
book value
Securities 22,532.2 - - 22,532.2 Fixed-rate loans and
Derivative assets1 - 535.8 - 535.8 mortgages 168,388.7 165,845.8 (2,542.9) - 29,711.8 136,134.0
Derivative liabilities1 - 2,375.5 - 2,375.5 Fixed-rate deposits 87,988.2 89,318.3 1,330.1 - - 89,318.3

1
Before deducting CVA of ` 0.2 (2016 - ` 0.4) on positive fair values and ` 0.4 (2016 - Secured borrowings 111,030.0 108,317.7 (2,712.3) - - 108,317.7
` 2.8) on negative fair values.

Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities:
` in millions
December 31, 2017 December 31, 2016
Fair value Fair value Amortised Total Fair Fair value Fair value Amortised Total Fair
held for through cost carrying value held for through cost carrying value
trading OCI amount trading OCI amount
Financial assets
Cash and deposits - - 2,233.2 2,233.2 2,233.2 - - 4,173.2 4,173.2 4,173.2
Derivative assets 1,302.3 - - 1,302.3 1,302.4 535.4 - - 535.4 535.8
Securities - 24,545.8 - 24,545.8 24,545.8 - 28,136.1 - 28,136.1 28,136.1
Loans, net - - 283,845.8 283,845.8 281,140.0 - - 292,953.5 292,953.5 290,410.6
Other assets - - 1,470.0 1,470.0 1,470.0 - - 1,901.5 1,901.5 1,901.5
Total 1,302.3 24,545.8 287,549.0 313,397.1 310,691.4 535.4 28,136.1 299,028.2 327,699.7 325,157.2
Financial liabilities
Derivative liabilities 290.1 - - 290.1 290.5 2,372.7 - - 2,372.7 2,375.5
Deposits - - 129,985.4 129,985.4 131,377.0 - - 130,655.7 130,655.7 131,985.9
Accounts payable and
other liabilities - - 3,121.1 3,121.1 3,121.1 - - 2,236.2 2,236.2 2,236.2
Secured borrowings - - 147,380.9 147,380.9 143,857.7 - - 155,659.7 155,659.7 152,947.3
Total 290.1 - 280,487.4 280,777.5 278,646.3 2,372.7 - 288,551.6 290,924.3 289,544.9

20. Contractual repricing and maturity schedule

The following table summarizes the carrying amounts of assets, liabilities and equity, and derivative instrument notional amounts in order to arrive at the Bank’s interest
rate gap based on the earlier of contractual repricing or maturity dates:
` in millions
December 31, 2017 Floating rate Under 3 3 to 6 6 to 12 1 to 5 Over Non-interest Total
months months months years 5 years sensitive
Assets
Cash and deposits - 2,129.2 - - - - 104.0 2,233.2
Derivative assets - 1,302.3 - - - - - 1,302.3
Securities - 4,335.4 1,534.1 2,569.9 16,106.4 - - 24,545.8
Loans, net 120,996.6 3,547.0 5,009.1 8,693.5 142,829.6 2,770.0 - 283,845.8
Property and equipment, net - - - - - - 54.8 54.8
Other assets - - - - - - 2,265.1 2,265.1
Total 120,996.6 11,313.9 6,543.2 11,263.4 158,936.0 2,770.0 2,423.9 314,247.0

Liabilities and Shareholders' Equity

Derivative liabilities - 290.1 - - - - - 290.1
Deposits 41,942.2 5,161.6 13,796.8 17,745.7 51,339.1 - - 129,985.4
Accounts payable and
other liabilities - - - - - - 3,121.1 3,121.1
Secured borrowings 39,696.6 1,943.7 4,737.8 6,420.2 94,582.6 - - 147,380.9
Shareholders' equity - - - - - - 33,469.5 33,469.5
Total 81,638.8 7,395.4 18,534.6 24,165.9 145,921.7 - 36,590.6 314,247.0

On-balance sheet gap 39,357.8 3,918.5 (11,991.4) (12,902.5) 13,014.3 2,770.0 (34,166.7) -
Off-balance sheet gap - (4,269.9) 3,484.0 785.9 - - - -
Interest rate sensitivity gap
based on contractual repricing 39,357.8 (351.4) (8,507.4) (12,116.6) 13,014.3 2,770.0 (34,166.7) -
Cumulative gap 39,357.8 39,006.4 30,499.0 18,382.4 31,396.7 34,166.7 - -

465
 notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

` in millions
December 31, 2016 Floating rate Under 3 3 to 6 6 to 1 to Over Non-interest Total
months months 12 months 5 years 5 years sensitive
Assets
Cash and deposits - 4,091.7 - - - - 81.5 4,173.2
Derivative assets - 535.4 - - - - - 535.4
Securities - 15,789.9 9,810.8 1,519.8 1,015.6 - - 28,136.1
Loans, net 124,564.8 519.2 3,544.0 6,447.0 155,256.4 2,622.1 - 292,953.5
Property and equipment, net - - - - - - 65.8 65.8
Other assets - - - - - - 2,821.5 2,821.5
Total 124,564.8 20,936.2 13,354.8 7,966.8 156,272.0 2,622.1 2,968.8 328,685.5

Liabilities and Shareholders' Equity

Derivative liabilities - 2,372.7 - - - - - 2,372.7
Deposits 42,667.5 2,885.9 8,615.8 20,105.1 56,381.4 - - 130,655.7
Accounts payable and
other liabilities - - - - - - 2,236.2 2,236.2
Secured borrowings 44,629.7 139.8 3,302.4 4,412.1 103,175.7 - - 155,659.7
Shareholders' equity - - - - - - 37,761.2 37,761.2
Total 87,297.2 5,398.4 11,918.2 24,517.2 159,557.1 - 39,997.4 328,685.5
On-balance sheet gap 37,267.6 15,537.8 1,436.6 (16,550.4) (3,285.1) 2,622.1 (37,028.6) -
Off-balance sheet gap - (3,274.1) (1,451.0) 4,725.1 - - - -
Interest rate sensitivity gap
based on contractual repricing 37,267.6 12,263.7 (14.4) (11,825.3) (3,285.1) 2,622.1 (37,028.6) -
Cumulative gap 37,267.6 49,531.3 49,516.9 37,691.6 34,406.5 37,028.6 - -

The following table details the undiscounted future cash flows on the Bank’s Bank guarantees are in the form of financial guarantees or performance
deposit liability and secured borrowings as at December 31: guarantees. Financial guarantees are obligations to pay a third party beneficiary
` in millions where a customer fails to make payment towards a specified financial obligation.
Performance guarantees are obligations to pay a third party beneficiary where
2017 2016 a customer fails to perform a non-financial contractual obligation. The Bank
Up to 1 to 5 Up to 1 to 5 generally has collateral available to mitigate potential losses on the guarantees.
1 year years 1 year years Margins available to mitigate losses realized under guarantees were ` 779.7
Deposits 81,543.3 53,439.5 77,381.1 58,415.0 (2016 - ` 1,085.0), as at the statement of financial position date.

Secured borrowing 47,837.4 124,929.4 43,786.6 140,508.6 The gross outstanding amount of guarantees provided to its customers and
other third parties as at December 31 are as follows:
Total 129,380.7 178,368.9 121,167.7 198,923.6
` in millions
2017 2016
21. Guarantees and commitments
 Undrawn commitments and guarantees include the unused portion of BG 4,675.0 3,339.6
commercial/personal lines of credit, letters of credit facility to commercial LC - -
clients, import bills for collection, standby letters of credit and bank guarantees.
SBLC 2.6 37.1
Trade guarantees Total 4,677.6 3,376.7
As a part of its trade finance banking activities, the Bank issues guarantees and
documentary credits (letters of credit) on behalf of its customers in favour of The maturity profile of the gross outstanding amount of guarantees as at
third parties, with a view to augment the customers’ credit standing. Through December 31 are presented below; however, the Bank may be called upon
these instruments, the Bank undertakes to make payments for its customers’ to honour the commitment at any point before the maturity date, based on
obligations, either directly or in case of failure of the customers to fulfil their fulfillment of the terms and conditions of the guarantee:
financial or performance obligations. ` in millions
A letter of credit (“LC”) is a written undertaking by a bank (issuing bank) given to
the seller (beneficiary) at the request of the bank’s client, i.e., buyer (applicant) 2017 BG LC SBLC Total
to pay a sum of money against presentation of documents complying with the Upto 1 year 3,541.1 - 2.6 3,543.7
terms of the credit within a set time limit.
Bank guarantees (“BG”) and Standby Letters of Credit (“SBLC”) are written Over 1 year 1,133.9 - - 1,133.9
promises issued by a bank to pay a sum of money to the beneficiary in the event
Total 4,675.0 - 2.6 4,677.6
that the obligor (customer) fails to honor its obligations in accordance with the
terms and conditions of the guarantee. BG and SBLC differ from LC in that they
are triggered only if the applicant or principal has made a default and the Bank is
required to honour the commitment as per the terms of the instrument.

466
notes to financial statements supplementary
(In millions of Indian Rupees) financial information

forming part of financial statements Continued

` in millions ` in millions
2017 2016
2016 BG LC SBLC Total
Regulatory capital ratios:
Upto 1 year 2,204.9 - 37.1 2,242.0
CET1 (%) 21.06% 22.78%
Over 1 year 1,134.7 - - 1,134.7
Tier 1 (%) 21.06% 24.65%
Total 3,339.6 - 37.1 3,376.7
Total (%) 21.06% 24.65%
Lease commitments: Leverage Ratio 9.90% 10.83%
Payments made under operating leases are recognized in profit or loss on a
straight-line basis over the term of the lease. Lease incentives received are 23. Risk management
recognized as an integral part of the total lease expense, over the term of the Risk management framework
lease. The Bank leases a number of branch and office premises under operating As a financial intermediary, the Bank is exposed to various types of risks. The
leases. The leases typically run for a period of up to 10 years, with an option to objective of the risk management framework at the Bank is to ensure that the
renew the lease after that period. During the year ended December 31, 2017, an key risks facing the Bank are identified, understood, measured and monitored
amount of ` 100 (2016 - ` 97.8) has been recognized as expense for these leases. and that the Bank follows the policies and procedures established to address
Future minimum annual rental commitments for premises and equipment these risks.
under long-term non-cancellable operating leases for the next five years ending The key principles underlying the risk management framework at the Bank are:
December 31 and thereafter, are shown below:
1) The Board of Directors (the “Board”) has oversight over the risks assumed
` in millions
by the Bank. Specific Board Level Committees have been constituted to
2017 2016 facilitate focused oversight over these risks.
within 1 year 105.5 98.9 2) Policies approved from time to time by the Board and Board Committees
1 - 2 years 96.3 45.0 form the basis of the governing framework for each type of risk. The
business activities are undertaken within this policy framework.
2 - 3 years 89.5 18.2
3) Independent groups and sub-groups have been constituted across the Bank
3 - 4 years 89.5 11.7
and its Parent to facilitate independent evaluation, monitoring and reporting
4 - 5 years 90.0 11.7 of risks. These groups function independently of the business groups.
Thereafter 418.9 37.2 The Bank ensures it has a sound and safe risk management governance
889.7 222.7 framework that is shared at all levels of the organization in support of its
purpose, mission, business objectives, values and growth principles and is
22. Capital adequacy aligned with its risk appetite. The Bank identifies the significant issues and
risks that need to be addressed and is able to demonstrate that they are being
OSFI has issued the Capital Adequacy Requirements (“CAR”) Guideline and the
meaningfully dealt with and provides the Board with the assurance that the risk
Leverage Requirements Guideline which establish two minimum standards:
is managed proactively rather than reactively. Decision making is based on a
the leverage ratio and the risk-based capital ratio to provide a framework for
strong understanding of risk metrics and analytics.
assessing the adequacy of capital for all institutions. The leverage ratio test
provides an overall measure of the adequacy of an institution’s capital while The Bank recognizes that there are emerging risks, i.e., risk events which may
the risk-based capital ratio focuses on risk faced by the institution. These have the potential to increase in significance and/or may be material to the
capital adequacy requirements apply on a consolidated basis and apply to all organization and/or significant events, i.e., events or activities which may have
institutions as defined in the CAR Guideline. OSFI requires all banks to maintain significant or material impact on the achievement of corporate goals, or an
sufficient capital to meet or exceed its capital adequacy requirements. The Bank event or activity which may cause a significant opportunity to be missed, which
has a Capital Management Policy, which is reviewed and approved annually are inherent in its business activities. Accordingly, policies and procedures
by the Board of Directors, governing the quantity and quality of capital to be are developed to ensure that all material risks to which the Bank is exposed
maintained by the Bank. The objective of this policy is to maintain strong and to and any risks associated with key governance elements and operating
sufficient capital at levels that is appropriate for business requirements from activities are identified, managed, measured, monitored and reported. The Bank
time to time. takes appropriate and timely action to address any significant weaknesses or
breakdowns related to strategic risk, liquidity, funding and capital management
Effective January 1, 2013, the Bank has adopted the Basel III framework as
process matters identified.
required by OSFI. Further, effective January 1, 2015, OSFI also expects all
institutions to maintain a minimum leverage ratio. The Bank is in compliance The Bank manages emerging risks and significant events efficiently and
with OSFI’s capital adequacy requirements in respect of risk-based Common effectively through an integrated risk management framework, which includes
Equity Tier 1, Tier 1 and Total capital ratios as well as the Leverage Ratio. a comprehensive infrastructure of corporate policies, processes, procedures,
The composition of regulatory capital and the regulatory capital ratios, as at methods, oversight and independent review, designed to reduce and manage
December 31, are presented below: these risks to an appropriate threshold. The integrated risk management
` in millions framework ensures that operating practices consider the balance of risk and
reward, alignment to business strategy, adequate diversification of risk, pricing
2017 2016 that is appropriate for the risk, mitigation of risk through preventative controls
Regulatory Capital and risk transfer to third parties as applicable. The integrated risk management
Common Equity Tier 1 (CET1) Capital framework provides the Board reasonable assurance that the Bank is in control.
Common shares 29,024.6 32,337.3 Management frameworks for each risk type are developed which set the
parameters regarding decisions considered to be within the business lines’
Surplus (share premium) relating to common shares - -
discretion versus those which require involvement of either the risk management
Retained earnings for accounting purposes 4,207.8 2,207.4 group or the Board. These also establish a threshold for decisions to be elevated
Accumulated other comprehensive income for for further review. Risk management frameworks are maintained for the major
capital purposes (183.3) 19.7 risk categories of credit, market (including interest rate risk, foreign exchange
33,049.1 34,564.4 risk, liquidity and funding risk) and operational risk. Other risk categories are
recognized within these frameworks, as a result of the failure of the frameworks
Regulatory adjustments to CET1 Capital or as residual. Processes not governed by the requirements of credit, market
Debit valuation adjustment on derivatives 0.3 2.1 or liquidity and funding frameworks are included in the operational risk
Net CET1 Capital 33,048.8 34,562.3 management framework.
The Bank’s financial objectives, strategic principles and risk management
Additional Tier 1 capital principles are the foundations of its Risk Appetite Framework. Risk management
principles are set through quantitative and qualitative risk appetite statements
Preferred share capital that guide management actions and serve as a foundation to the self-imposed
(after phase out arrangements for capital adequacy limits set in the specific risk management corporate policies.
purposes) - 2,835.6 The Bank’s risk appetite framework is defined by the Bank’s Enterprise Risk
Net Tier 1 Capital 33,048.8 37,397.9 Management Framework (ERMF), which defines the levels of risk that the
Net Tier 2 Capital - - Bank is willing to take in pursuit of achieving its business goals and delivering
on its strategic plan while maintaining a sound and safe financial institution.
Total Capital 33,048.8 37,397.9
In particular, the Bank’s ERMF articulates self-imposed constraints and risk

467
 notes to financial statements
(In millions of Indian Rupees)
forming part of financial statements
limits establishing qualitative and quantitative thresholds that guide risk-taking
activities in credit risk, market risk, liquidity and funding risk, operational risk,
legal and regulatory compliance.
A risk appetite framework balances the needs of all stakeholders by acting as
both a governor of risk and driver of current and future business strategy. The
objective of establishing a risk appetite framework is to:
• Improve investor/creditor/depositor/regulator confidence in the Bank’s risk
profile;
• Improve management confidence regarding the Bank’s risk profile;
• G
 ive the Bank greater control and coordination of risk-taking across
businesses; and
• Rebalance the risk profile to achieve a superior risk-return profile.
A set of interrelated considerations, including capital adequacy, liquidity,
stress testing and regulatory requirements collectively define the Bank’s
capacity for risk-taking in pursuit of its mission, vision, business objectives
and overall strategic goals. The Bank’s strategy is supported by its risk and
financial management policies and procedures. The Bank’s capital management
framework includes a comprehensive internal capital adequacy assessment
process (“ICAAP”) conducted annually and which determines the adequate
level of capitalization for the Bank to meet regulatory norms and current and
future business needs, including under stress scenarios.
Stress testing, is conducted to assess the impact of stress events on the Bank’s
risk profile and internal capital adequacy requirements. Stress testing which
is a key aspect of the ICAAP and the risk management framework provides
an insight on the impact of extreme but plausible scenarios on the Bank’s
risk profile and capital position. Based on the Board-approved stress testing
framework, the Bank conducts stress tests on its various portfolios and assesses
the impact on its capital ratios and the adequacy of capital buffers for current
and future periods.
The Bank periodically assesses and refines its stress tests in an effort to ensure
that the stress scenarios capture material risks as well as reflect possible
extreme market moves that could arise as a result of market conditions. The
Bank uses the ICAAP to determine the Bank’s growth strategy, risk profile and
minimum capital resource requirements and formulates its internal capital level
targets based on the ICAAP and endeavors to maintain its capital adequacy level
in accordance with the targeted levels at all times.
The approach of management to handle the key risks facing the Bank is outlined
below:
(a) Credit risk
Credit risk is the risk that the bank will incur a loss because its customers
or counterparties fail to discharge their contractual obligations and arises
principally from the Bank’s loans and advances to customers and other
banks, derivative assets and investment in debt securities. The Bank’s
CCCRP, RCRP and Residential Mortgage Underwriting Policy (“RMUP”),
which are approved by its Board, together describe the principles which
underlie and drive the Bank’s approach to credit risk management together
with the systems and processes through which it is implemented and
administered.
The CCCRP aims to maximize the Bank’s risk-adjusted rate of return while
maintaining the Bank’s credit risk exposure on corporate and commercial
counterparties within limits and parameters as approved by the Board.
Additionally the Bank has implemented RCRP and RMUP. These policies
provide guidelines in respect of the manner in which lending and recovery
activities of retail lending business and residential mortgage business
shall be conducted by the Bank. The principles underlying overall credit
risk management are covered in CCCRP, RCRP and RMUP for the Bank’s
corporate credit, retail credit and mortgage lending businesses respectively.
The Bank takes a two-tier approach to assessment of credit risk for its
corporate and commercial lending business: initially, by a commercial
lending officer proposing the transaction, followed by a risk officer
independently assessing the same. The CCCRP lays down a structured and
standardized credit approval process, which includes a well-established
procedure of independent and comprehensive credit risk assessment and
the assignment of an internal risk rating to the borrower. The risk rating
is a critical input for the credit approval process and is used as an input in
arriving at the credit risk spread, and also subsequently, in arriving at the
loan loss allowance against the credit.
Credit proposals are approved by either the Risk Committee (“RC”) or the
Management Credit Committee (“MCC”) based on, inter alia, the amount
and internal risk rating of the facility. All credit proposals are approved
by the MCC before being recommended to the RC by the Chief Risk
Officer (“CRO”). The credit middle office function is responsible for credit
administration, which includes monitoring compliance with the terms and
conditions for credit facilities prior to disbursement. It also reviews the
completeness of documentation and creation of security for assets financed
and post-disbursement monitoring as per stipulated terms and conditions.
468
supplementary
financial information
Continued
A
 dditionally, the residential mortgage applications are electronically transmitted
from the mortgage brokers into an underwriting system with built-in business
rules to determine parameters/approval authorities to facilitate the underwriting
process. The applications for insured mortgages are also submitted to mortgage
insurer for approval. Only the applications approved by the mortgage insurer
are adjudicated by the underwriting team based on the Bank’s RMUP. The
underwriting team is also responsible for credit administration, which includes
monitoring compliance with the terms and conditions for the committed
mortgages prior to disbursement. The closing centers review the completeness
of documentation and creation of security including title insurance for the
mortgage.
The Bank follows an approach consistent with the Parent Bank in terms of dealing
with sovereign and financial institutions worldwide. The primary responsibility
for evaluating global financial institution exposures rests with the Parent Bank’s
International Financial Institutions Group (IFIG). Global bank lines are advised by
the Parent Bank annually. The Bank adopts the lower of the globally approved
limit or the maximum permissible limits as applicable under large exposure limit
under the Portfolio Management section in the CCCRP. Lending officers approach
IFIG and obtain their first line approval for entering in to a relationship, before
progressing on a proposal for a particular bank or non-bank financial institution
or counterparty and present their evaluation in writing to MCC. The Bank has also
setup aggregate exposure limits which are monitored and reported to MCC on a
monthly basis and to RC on a quarterly basis.
The Bank has put in place a Board-approved comprehensive limit framework
(as included in CCCRP, RCRP, RMUP and ERMF) to prudently manage the
credit risk profile of the Bank. The Bank complies with the norms on exposure
stipulated by OSFI for both single borrower as well as at a connection level.
Limits have been set as a percentage of the Bank’s capital funds and are
regularly monitored. The material limits included as part of the CCCRP include
limits on single party exposure, risk rating category, industry, geographical
exposures, portfolio exposures, type of borrower, class of security, tenor, and
Loss Given Default (“LGD”) profile. The material limits included as part of the
RCRP include Limits on single borrower exposure, risk rating, bank exposures,
geographical exposures, portfolio exposures, and tenor. Similarly, the material
limits documented as part of the RMUP includes the limits on un-securitized
mortgages, fixed rate commitments, fixed rate per-approvals, provincial
exposures, high-rise condominiums, and rental properties.
All credit exposures are measured and monitored using a centralized exposure
management system. The analysis of the composition of the portfolio and
limits compliance is presented to quarterly to RC. In addition, credit limits for
Corporate and Treasury clients are monitored by the Middle Office Groups and
the monitoring reports which detail deficiencies and limit breaches, are sent to
Senior Management on a regular basis.
Monitoring of credits, while ongoing as part of scheduled periodic credit
reviews, can also be triggered by any material credit event coming to the Bank’s
notice through either primary or secondary sources. All borrower accounts,
including their ratings and underlying collateral, are reviewed at least on an
annual basis or in a shorter interval if recommended by the CRO or the relevant
sanctioning committee.
Credit risk is also managed at the portfolio level by monitoring and reporting
to the MCC and RC, the key parameters of risk concentration; namely, product
specific exposures, large exposures, industry/sectoral exposures, country/
geographical exposures and rating category-based exposures.
Collateral is obtained when the loan is initially granted and is monitored
periodically. For impaired loans, the available collateral has been considered
in determining loan loss allowances. The types of acceptable collateral are
documented in various relevant policy documents. The main types of collateral
obtained are as follows:
• F
 or corporate/commercial lending, assets of the borrower/corporate
guarantors, personal assets of the principals and/or pledge of equity
interests, charge on equipment and current assets, hypothecation of
movables. Generally, for commercial lending, the Bank also obtains
guarantees from parent companies for loans to their subsidiaries;
• F
 or retail lending on a case to case basis, charge on personal assets,
including real estate/property; and
• F
 or residential mortgages, first/second mortgage charge in favour of the
Bank, as well as insurance by CMHC or approved private insurers.
The amount of loans based on the types of collateral held in respect of the loans
as at December 31 are summarized below:
• Commercial and corporate loans of:
• ` 7,941.0 (2016 - ` 8,327.3) are collateralized by guarantees.
• ` 82,877.1 (2016 - ` 83,951.3) are collateralized by variety of assets and/
or charge on fixed/ current assets.
• ` 29,385.9 (2016 - ` 29,924.7) are either unsecured or senior unsecured
facilities.
• P
 ersonal loans include advances of ` 1,861.8 (2016 - ` 2,380.0), under the
“Immigrant Investor Program”, which is secured by a promissory note, fully
notes to financial statements
(In millions of Indian Rupees)
forming part of financial statements
and unconditionally guaranteed by either the Federal government or the
respective province in Canada. Further, an amount of ` 2.4 (2016 - ` 3.8) of
other personal loans are secured by term deposits placed with the Bank.
• Commercial mortgages are usually secured by a first charge on property.
• T
 rade finance exposures are backed by guarantees by other financial
institutions or current assets of the borrower.
• E
 xcept for the conventional mortgages, all residential mortgages are fully
insured with CMHC or approved private insurers.
(b) Market risk
Market risk is the uncertainty of earnings faced by the Bank as a result of
volatility in market factors (i.e., interest rates, currency exchange rates,
market liquidity and asset prices). Market risk events may impact the
valuation of investments and the net interest income and net interest
margin resulting in an impact on the profit and loss account. The policies
approved by the Board for addressing market and liquidity risks are Liquidity
Management Policy (“LMP”), Market Risk Management Policy (“MRMP”) and
Liquidity Contingency Plan (“LCP”).
The Asset Liability Management Committee (“ALCO”) considers various
investment and treasury operations matters, implementation of risk
mitigation measures, and recommends major policy changes governing
treasury activities to the RC. Furthermore, an independent TCSG is set up
to monitor and report the various risk limits set through the LMP and the
MRMP.
The key risks to which the Bank is exposed from a market risk perspective
relate to:
(i) 
Interest rate risk - Interest rate risk is defined as the exposure of a
bank’s financial condition to adverse movements in interest rates.
Earnings from interest-sensitive investments and the overall value of the
investment portfolio will be impacted by changes in interest rates. The
MRMP currently sets out the measurement process to include the use of
repricing gap reports and estimation of the sensitivity of the Bank’s net
interest income to a 100 bps adverse change in the level of interest rates,
defined as Earnings at Risk (“EaR”). The sum of EaR for the Bank over a
4-quarter horizon for an adverse 100 bps parallel shift in interest rates shall
not exceed 3% of the Bank’s current Tier 1 plus Tier 2 capital or ` 764.5
(whichever is lower). At December 31, 2017, the actual limit utilization was
` 262.2, i.e. 0.79% of the Bank’s current Tier 1 plus Tier 2 capital.
Further, the Bank uses various measures, including Duration of Equity
(“DoE”), which takes into consideration duration and value of both
assets and liabilities. DoE is a measure of interest rate sensitivity,
which indicates how much the market value of equity would change if
interest rates change by 1%. The Bank has set a maximum limit of (+/-)
4% of Tier 1 capital given a 100 bps change in interest rates and as at
December 31, 2017, the actual DoE was 2.11, based on which the actual
limit utilization was 2.11% of Tier 1 capital.
(ii) 
Foreign exchange risk - The risk arises due to positions in non-Canadian
denominated currencies, which in turn arises from assets and liabilities
in those currencies. The risk originates as a result of the impact on
revenue due to the potential revaluation of non-Canadian assets and
liabilities. The aggregate net overnight open exchange position across all
foreign currencies as per the MRMP shall not exceed U.S. $15,000,000.
Generally, Value-at-Risk (“VaR”) is a tool for measuring market risk on
trading positions. It seeks to ascertain the maximum loss on a portfolio
at a given confidence level over a specific holding period. As per the
MRMP, a VaR limit (99%-1day) of U.S. $250,000 has been set on the
aggregate overnight open position and the actual VaR as at December
31, 2017 was U.S. $78,130. The Bank uses one-year data to compute
VaR and there have been no breaches of the VaR limit in the year ended
December 31, 2017.
(iii) Liquidity and funding risk - Liquidity risk relates to the potential difficulty
in accessing financial markets in order to meet payment obligations.
Liquidity risk is the potential for losses that could be incurred from
holding insufficient liquidity to survive a liquidity contingent stress event,
whether name-specific or market-wide in origin. It includes the risk of
unexpected increases in the cost of funding the assets, and the risk of
being unable to access the market or to liquidate investments in a timely
manner at a reasonable price. The LMP captures the details of the risk
appetite framework and risk capacity of the Bank. The Bank expresses
its liquidity risk appetite through a range of limits across liquidity gaps
covering the entire spectrum of the balance sheet, including limits
specified in major currencies (Canadian and U.S. dollars). The Bank also
monitors liquidity risk through liquidity ratios and regulatory reports
such as Net Cumulative Cash Flows (NCCF) and Liquidity Coverage Ratio
(LCR) on a periodic basis.
The LMP also captures the details of stress test scenarios (Bank-specific,
Market-specific and Combined scenarios) for different short-term stress
horizons. Under each of these scenarios, each cash flow item namely
supplementary
financial information
Continued
deposits, unfunded authorizations, loan delinquencies, collateral
requirements etc. are subjected to different levels of stress depending
on the stress horizon and type of scenario and appropriate funding
sources are identified and quantified to mitigate the net stress outflows.
The LCP serves as a framework for early identification and calibrated
action in the event of tight liquidity conditions. The LCP includes
various indicators which are monitored regularly, and lays down the
mechanism for escalation, remedial action and crisis management until
return to normalcy.
Treasury ensures that adequate liquidity is maintained at all times
through systematic funds planning and maintenance of liquid
investments. The Bank at all times seeks to maintain diversification in
the sources and tenor of its funding. The Bank’s liabilities are largely
drawn from retail deposits, commercial deposits, other financial
institutions, inter bank borrowings, securitizations and other funding
sources which may become available from time to time. In addition,
liquidity stress testing analysis as per the LCP are regularly performed
to assess the Bank’s ability to withstand worst crisis situation.
The Treasury team manages the market risk of treasury positions and
the day-to-day liquidity of the Bank. The ALCO and the RC undertake a
periodic review of the market risk and liquidity position of the Bank.
(c) Operational risk
Operational risk is defined as the risk of loss resulting from inadequate or
failed internal processes, people and systems or from external events. This
definition includes legal risk, but excludes strategic and reputational risk.

The Bank has developed and implemented an Operational Risk
Management Policy, which defines the guidelines adopted by the Bank
towards minimizing losses due to process failures, product design flaws
that can expose the Bank to losses due to fraud, impact of failures in
technology/systems and continuity of Banking operations in contrary
conditions.
The Bank has also developed and implemented an Information Security
Policy. The policy gives direction towards development, maintenance and
review of Information Security (IS) standards and procedures adopted by
the Bank across people, process and technology. The policy endeavors
to ensure compliance with all internal and regulatory IS requirements,
including customer data protection.
The senior management of the Bank is responsible for establishment and
maintenance of an adequate and effective system of internal controls, a
measurement system for assessing the various risks of the Bank’s activities,
a system for relating risks to the Bank’s capital level appropriate methods
for monitoring compliance with laws, regulations and supervisory and
internal policies. The senior management reports to the Board on these
issues. The Bank has implemented its risk and control self-assessment
approach to identify and ensure effective control of its operational risks.
To identify operational risks in new products/processes, all such proposals
are approved by the Product and Process Approval Committee (“PAC”).
The PAC comprises of senior executives and approval is granted after
obtaining inputs from the relevant groups and control functions in the Bank.
The Operational Risk Management Group (“ORMG”) under the supervision
of Chief Risk Officer is responsible for providing oversight over operational
risk within the Bank. The ORMG does this by undertaking activities of
operational risk identification, assessment, measurement, monitoring and
reporting to management level Operational Risk Committee (“ORC”) and
the Risk Committee and the Board. All PAC proposals are internally rated
by ORMG. ORMG performs the independent challenge process in all areas
of operational risk. Independent challenge process at the time of PAC note
review is documented in the PAC instructions.
The Bank has developed and implemented a Business Continuity Plan
(“BCP”). This plan is designed to facilitate continuity in critical business
operations in the event of a disaster or an emergency situation. The BCP
has been formulated on the basis of a business impact analysis carried
out for the individual groups involving identification of critical activities and
determination of their recovery time objectives.
The Bank has outsourced certain activities in the interest of cost and process
efficiencies, including mid-office operations for treasury and corporate
banking, information technology, corporate operations and trade finance
operations to the Parent, terms of which are governed through a master
service level agreement (“SLA”) and specific SLAs. All these activities are
closely monitored under the framework of outsourcing risk with regular
monitoring of SLA performance dashboards. Material performance
shortfalls within these SLA’s are taken up with the service provider and the
same is reported to management and Board level committees.
The Bank has developed and implemented an Outsourcing Policy to
mitigate outsourcing risks and ensure the application of a standardized
approach for all outsourcing arrangements entered into by the Bank. All
proposed outsourcing arrangements are assessed for their criticality prior
469
 notes to financial statements
(In millions of Indian Rupees)
forming part of financial statements
to outsourcing. For all such arrangements deemed to be critical, a detailed
assessment is conducted and the proposal is approved by the Outsourcing
Committee. The performance of vendors are periodically reviewed and
assessment reports are presented to the RC.
Operational risk incidents are reported regularly and transactions resulting
in losses are routed through operational risk account. Root cause analysis
is carried out for the significant operational risk incidents (beyond the
threshold limits) reported and corrective actions are incorporated back
into respective processes. The Bank has implemented incident reporting
process, which facilitate capturing of operational risk incidents by the
employees of the Bank.
The operational risk losses and incident analysis are submitted to the Risk
Committee and to the Board on a periodic basis. Operational risk exposures
(risk and control self-assessment results, operational risk incidents analysis and
key risk indicators) are monitored by the ORC on a regular basis and reported
to the Senior Management in the form of dashboards on a periodic basis.
In keeping with the Bank’s enterprise-wide approach for managing
Regulatory and Compliance Risks, the Bank has implemented a Legislative
Compliance Management (“LCM”) Policy. The policy applies to every
aspect of the Bank’s operations and activities without exception. The Bank
recognizes the risk of legal and regulatory sanctions, material financial loss,
and loss to reputation that it may suffer in the event of non-compliance
with any of regulatory requirements. The Bank has implemented a formal
risk assessment methodology which outlines the overall Regulatory Risk
management process. This methodology uses international standards and
best practices including the COSO Internal Control Framework and COSO
ERM Integrated Framework, as guidelines.
Group risk management framework
The Bank is aligned with the Parent’s risk management framework, which
has been developed in order to identify, evaluate and manage key risks
on a worldwide basis. The framework is applicable to all overseas banking
entities of the Parent. The policies applicable to the Bank are formulated
in consultation with the Risk Management Group of the Parent and are
independently reviewed and approved by the Bank’s Board.
24. Standards issued but not yet mandatorily effective
 New international financial reporting standards and related interpretations,
amendments to existing standards and interpretations not yet mandatorily
effective for the year ended December 31, 2017 have not been applied in
preparing these financial statements. This section contains standards and
interpretations issued, which will be applicable to the Bank at a future date. The
Bank intends to adopt those standards when they become effective.
IFRS 9, Financial Instruments (“IFRS 9”):
On July 24, 2014, the IASB issued IFRS 9 Financial Instruments (“the Standard”),
which will replace IAS 39. The Standard covers three broad topics: Classification
and Measurement, Impairment and Hedging. In June 2016, OSFI issued “IFRS
9 Financial Instruments and Disclosures” which provides guidance on the
application of IFRS 9 that is consistent with the BCBS guidance issued in 2015.
The standard is effective for the Bank on January 1, 2018 on a retrospective
basis with certain exceptions. The implementation of IFRS 9 has been a
significant initiative for the Bank, involving the risk management, operations
and finance team. The project has been managed through a strong governance
structure across the teams along with the business units. The Bank’s system of
internal controls is being revised to meet the requirements of IFRS 9.
Classification and Measurement, Impairment and Hedging.
a) Classification and Measurement
The standard uses a single approach to determine whether a financial asset is
measured at amortized cost or fair value. The standard requires that financial
assets be classified based on the business model for managing the financial
assets and the contractual cash flow characteristics of the financial assets.
Financial assets will be measured at fair value through profit or loss unless
certain conditions are met which permits measurement at amortized cost
or at fair value through OCI. Most of the IFRS 9 requirements for financial
liabilities have been carried forward unchanged from IAS 39, except
requirements related to presenting fair value changes due to the financial
liabilities designated as fair value through profit and loss. The Bank does not
expect the implementation to result in a significant change in classification
and measurement of its financial assets or its financial liabilities.
b) Impairment
The standard introduces a new single model for the measurement of
impairment losses on all financial instruments subject to impairment
accounting and for commitments to extend credit. The expected credit loss
(ECL) model replaces the current “incurred loss” model and is based on
a forward looking approach. IFRS 9 Impairment model uses a three stage
approach based on the extent of credit deterioration since origination.
470
supplementary
financial information
Continued

Stage 1 – 12-month ECL applies to those financial assets that are not
impaired and for which there is no significant increase in credit risk since
origination. The ECL will be computed using a 12-month PD representing
the probability of default expected over the next 12 months or less in line
with the maturity profile. The IFRS 9 requirement differs from the current
practice which estimates a collective allowance to recognize losses that
have been incurred but not reported on performing loans.

Stage 2 – When a financial asset is not impaired but experiences a
significant increase in credit risk since origination, it is moved to stage 2.
The ECL computation in stage 2 is required to be based on lifetime PD that
represents the probability of default expected over the remaining lifetime of
the asset. The provisions are higher in stage 2 due to an increase in risk and
impact of a longer time horizon being considered compared to Stage 1.
Stage 3 – Included in this stage are financial assets that have an objective
evidence of impairment. The allowance for credit losses in stage 3 will
continue to capture the lifetime ECLs as in Stage 2. It is also expected that
loans which are currently presented as impaired under IAS 39 would be
classified as stage 3 loans under IFRS 9. Interest revenue is calculated based
on the carrying amount of the asset, net of the loss allowance, rather than
on its gross carrying amount.
c) Hedging
The standard expands the scope of hedged items and hedging items to
which hedge accounting can be applied and aligns the accounting more
closely with risk management. Quantitative measures for effectiveness
testing are no longer specified under the new standard and the standard
does not permit voluntary de-designation of the hedge. IFRS 9 includes an
accounting policy choice to defer the adoption of IFRS 9 hedge accounting
and to continue with IAS 39 hedge accounting. The Bank has decided to
adopt this accounting policy choice.
Some of the key concepts in IFRS 9 that require significant judgment and
could have a significant impact on the allowance for loan losses are:
Assessment of Significant Increase in Credit Risk
The assessment of a significant increase in credit risk (“SICR”) will be carried
out on a relative basis. To assess whether the credit risk on a financial
asset has increased significantly since origination, the Bank will compare
the risk of default occurring over the expected life of the financial asset at
the reporting date to the corresponding risk of default at origination, using
key risk indicators. At each reporting date, the change in credit risk will be
individually assessed for those considered individually significant except
retail exposures which will be assessed collectively until they are 90 days past
due and individually thereafter. IFRS 9 contains a rebuttable presumption
that instruments which are 30 days past due have experienced a significant
increase in credit risk. We do not intend to rebut this presumption. Financial
assets can move in both directions through the stages of the impairment
model and will allow credit risk of financial assets to move back to Stage 1 if
increase in the credit risk since origination reduces and is determined to be
no longer significant.
Macroeconomic and forward looking factors and scenarios
IFRS 9 requires an unbiased and probability weighted estimate of credit
losses by evaluating a range of possible outcomes that incorporates forecasts
of future economic conditions. Macroeconomic factors and forward looking
information are required to be incorporated into measurement of ECL as well
as the determination of whether there has been a SICR since origination.
Measurement of ECLs at each reporting period should reflect reasonable
and supportable information at the reporting date about past events, current
conditions and forecasts of future economic conditions. The Bank will use
three scenarios that will be probability weighted to determine ECL.
Use of expert credit judgment
In line with OSFI guidelines, the Bank’s ECL methodology requires the use
of expert credit judgment to incorporate the estimated impact of factors not
captured in the modelled ECL results for all reporting periods.
Expected life
The Bank would consider the maximum contractual period over which it
is exposed to credit risk. All contractual terms would be considered when
determining the expected life, including extension and rollover options. For
certain revolving credit facilities that do not have a fixed maturity and where
credit losses would not be mitigated by management actions, the expected
life is estimated based on the period over which the Bank is exposed to
credit risk.
Definition of default
The definition of default used in the measurement of expected credit
losses and the assessment to determine movement between stages will
be consistent with the definition of default used for internal credit risk
management purposes. IFRS 9 does not define default, but contains a
notes to financial statements
(In millions of Indian Rupees)
forming part of financial statements
rebuttable presumption that default has occurred when an exposure
is greater than 90 days past due. The Bank does not intend to rebut this
presumption.
Transition impact
The Bank will record an adjustment to its opening January 1, 2018 retained
earnings and AOCI, to reflect the application of the IFRS 9 requirements
at the adoption date and will not restate comparative periods. The Bank
estimates the IFRS 9 transition amount will reduce shareholders’ equity by
approximately ` 268.6 after-tax and the CET1 capital ratio by approximately
19 basis points as at January 1, 2018. The estimated impact relates primarily
to the implementation of the ECL requirements. The Bank will continue to
revise, refine and validate the ECL models and related process controls prior
to publishing its first IFRS 9 audited financial statements.
IFRS 15, Revenue from Contracts with Customers, (“IFRS 15”):
In May 2014, the IASB issued IFRS 15, Revenue from Contracts with
Customers, which provides a single principle-based framework to be
applied to all contracts with customers. IFRS 15 replaces the previous
revenue standard IAS 18, Revenue, and the related Interpretations on
revenue recognition. The standard scopes out contracts that are considered
to be lease contracts, insurance contracts and financial instruments, and as
supplementary
financial information
such will impact the businesses that earn fee and commission revenues.
The new standard is a control based model as compared to the existing
revenue standard which is primarily focused on risks and rewards. Under
the new standard, revenue is recognized when a customer obtains control
of a good or service. Transfer of control occurs when the customer has the
ability to direct the use of and obtain the benefits of the good or service.
In July 2015, the IASB confirmed a one-year deferral of the effective date
of the Standard to annual reporting periods beginning on or after January
1, 2018. Management is of the opinion that IFRS 15 will have no significant
impact on the financial statements.
IFRS 16, Leases, (“IFRS 16”):
IFRS 16 specifies how an IFRS reporter will recognise, measure, present
and disclose leases. The standard provides a single lessee accounting
model, requiring lessees to recognise assets and liabilities for all leases
unless the lease term is 12 months or less or the underlying asset has
a low value. Lessors continue to classify leases as operating or finance,
with IFRS 16’s approach to lessor accounting substantially unchanged
from its predecessor, IAS 17. IFRS 16 was issued in January 2016 and
applies to annual reporting periods beginning on or after January 1, 2019.
Management currently is in process of assessing the impact that IFRS 16
will have on the financial statements.
471
 ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED
25TH ANNUAL REPORT AND ACCOUNTS 2017-18
Directors Investment Committee Corporate Office
Chanda Kochhar (bearing DIN: 00043617), Chairperson and Nominee Director C.R. Muralidharan, Chairman One BKC 13th Floor, Bandra Kurla Complex,
N.S. Kannan (bearing DIN: 00066009), Nominee Director N.S. Kannan, Member Mumbai – 400051.
Guy Strapp (bearing DIN: 07245108), Nominee Director Nimesh Shah, Member Tel: +91 22 2652 5000,
Suresh Kumar (bearing DIN: 00494479), Independent Director Fax: +91 22 26528100,
C.R. Muralidharan (bearing DIN: 02443277), Independent Director Nomination and Remuneration
Lakshmi Venkatachalam (bearing DIN: 00758451), Independent Director Committee Registrar and Transfer Agent
Ved Prakash Chaturvedi (bearing DIN: 00030839), Independent Director Suresh Kumar, Chairman 3i Infotech Limited
Dilip Karnik (bearing DIN: 06419513), Independent Director Ved Prakash Chaturvedi, Member International Infotech Park,
Nimesh Shah (bearing DIN: 01709631), Managing Director and CEO Chanda Kochhar, Member Tower 5, 3rd Floor,
Sankaran Naren (bearing DIN: 07498176), Executive Director Guy Strapp, Member Vashi Railway Station Complex,
Vashi, Navi Mumbai 400 703.
Company Secretary Committee of Directors
Rakesh Shetty N.S. Kannan, Chairman Statutory Auditors
Nimesh Shah, Member Price Waterhouse Chartered Accountants LLP
Audit and Risk Committee (Registration no. 012754N/N-500016)
Ved Prakash Chaturvedi, Chairman Registered Office
Suresh Kumar, Member 12th Floor, Narain Manzil, Secretarial Auditors
Lakshmi Venkatachalam, Member 23, Barakhamba Road, BNP & Associates
Dilip Karnik, Member New Delhi – 110 001. (Firm Registration. No. P2014MH037400)
CIN: U99999DL1993PLC054135
Corporate Social Responsibility Committee website: www.icicipruamc.com
N.S. Kannan, Chairman
Lakshmi Venkatachalam, Member
Nimesh Shah, Member

directors’ report
to the members,
Your Directors have pleasure in presenting the Twenty Fifth Annual Report of ICICI b. Awards received by ICICI Prudential Mutual Fund (the Fund): In fiscal 2018, the
Prudential Asset Management Company Limited (“the AMC” or “the Company” or “Your AMC won the Best Equity Fund House award in the Outlook Money Awards 2017.
Company”) together with the audited financial statements of accounts for the year ended Also, the AMC was recognized as the Best Fund House (India) and Mr. Nimesh Shah
March 31, 2018 (fiscal 2018). was awarded the Best Asset Management CEO (India), by Global Banking & Finance
Review Awards.
FINANCIAL RESULTS The other awards received by the AMC include The Asset Benchmark Research
A summary of the Company’s financial results for fiscal 2018 are as follows: Awards under following categories:
(` in million) - Top Investment House; and
Particulars Fiscal 2017 Fiscal 2018 - Mr. Rahul Goswami, CIO – Fixed Income, was selected as the ‘Most Astute
Investor’ in Asian local currency bonds.
Gross Income 13,497.3 18,965.9
c. Sales, Operations and Consumer Service: Your Company has established a wide
Profit before tax 7,346.9 9,491.1 network of 187 well-equipped offices for selling its products and rendering timely and
Provision for taxation 2,542.2 3,235.6 efficient services to its customers located at various locations across the country.
Profit after tax 4,804.7 6,255.5 d. Personnel: Your Company continues to place emphasis on attracting and
Profit brought forward from previous year 5,027.4 5,986.6 recruiting quality manpower and takes a lot of effort in training and retaining
Profit available for appropriation them. The total strength of the Company at March 31, 2018 stood at 1,913 as
9,832.1 12,242.1 against 1,476 at March 31, 2017.
Appropriations
Transfer to General Reserve - - UPDATE ON NEW PRODUCTS
Interim Dividend 3,195.0 4,448.3 During fiscal 2018, ICICI Prudential Mutual Fund launched 38 fixed maturity plans, 3 capital
protection oriented schemes, 1 multiple yield funds, 10 close ended equity Schemes
Dividend Distribution Tax 650.5 905.6 (including 1 Close ended ELSS Fund) and 3 open ended equity Schemes.
Leaving balance to be carried forward to the
new year 5,986.6 6,888.2 BHARAT 22 ETF
During FY2018, the Company was appointed by the Department of Investment and
Dividend Public Asset Management (DIPAM), Ministry of Finance for creation and launch of a new
Exchange Traded Fund (ETF) - Bharat 22 ETF. The Company launched BHARAT 22 ETF in
The Directors of the Company have pleasure in informing that the Company had declared November 2017 with an issue size of ` 145 billion. BHARAT 22 ETF is an open ended Index
interim dividends during the year in the following manner: Exchange Traded Fund, which invests in constituents forming part of the underlying Index
i.e. S&P BSE Bharat 22 Index, in the same proportion.
Record Date for Dividend Rate of Dividend Total Dividend Amount
(` in million) SCHEME CATEGORISATION
June 27, 2017 ` 45 per share (450% of 794.3 During FY2018, SEBI had issued circulars on Rationalization and Categorization of Mutual
the face value) Fund Schemes in order to standardize the scheme categories and characteristics under
each category. The AMC will be carrying out changes in the Schemes of the Fund in order
September 26, 2017 ` 50 per share (500% of 882.6 to comply with the requirements of the SEBI circulars.
the face value)
December 23, 2017 ` 72 per share (720% of 1,270.8 PORTFOLIO MANAGEMENT AND OTHER SERVICES
the face value) As you are aware, the Company is offering Portfolio Management and Advisory Services
March 26, 2018 ` 85 per share (850% of 1,500.4 across equity, fixed income and real estate assets. As at March 31, 2018, the Company has
the face value) rendered Portfolio Management services to 5,253 clients. The Company provides investment
management services to the scheme under ICICI Prudential Venture Capital Fund under its
Portfolio Management Services License. The Company also provides investment management
Operations during the year services to the Alternative Investment Funds registered under Securities and Exchange
a. Average Assets Under Management (AUM): The average AUM of the Fund for FY2018 Board of India (Alternative Investment Funds) Regulations, 2012 and is currently acting as an
was ` 3,057 billion. investment manager to the Schemes launched by AMC under Alternative Investment Funds.

472
directors’ report
to the members,

PARTICULARS OF CONTRACT OR ARRANGEMENTS WITH RELATED PARTIES AUDIT AND RISK COMMITTEE
The Company undertakes various transactions with related parties in the ordinary course In accordance with Section 177 of the Act, the Board has constituted the Audit and Risk
of business. The Company has a Board approved policy dealing with the related party
Committee (“the ARC”).
transactions. All the related party transactions that were entered into during the year ended During fiscal 2018, four meetings of the ARC were held. The details of the composition of
March 31, 2018, were in the ordinary course of business and at arm’s length. the ARC as on March 31, 2018 and attendance of the members at its meetings is as under:
In terms with the Board approved framework, there were no material related party transactions Name of the Member Designation Number of Committee
for year ended March 31, 2018. The details of related party transactions forms part of the notes Meetings attended
to financial statements provided in this Annual Report.
Mr. Ved Prakash Chaturvedi Chairman 4
DEPOSITS Mr. Suresh Kumar Member 3
During fiscal 2018, the Company has not accepted any Deposits as covered under Chapter V
Ms. Lakshmi Venkatachalam Member 4
of the Companies Act, 2013 and rules made thereunder (the Act).
Mr. Dilip Karnik (appointed w.e.f Member 2
PARTICULARS OF LOAN, GUARANTEES OR INVESTMENTS September 08, 2017)
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of
the Act, during fiscal 2018 are given in the notes to the financial statements. The ARC was reconstituted in September 2017 and Mr. Dilip Karnik was appointed as a
member of the ARC.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
NOMINATION AND REMUNERATION COMMITTEE
The Company has its Board of Directors constituted in accordance with the provisions of
In accordance with Section 178 of the Act, the Board has constituted the Nomination and
the Companies Act, 2013 read with the SEBI (Mutual Fund) Regulations, 1996. The Board of
Remuneration Committee (“the NRC”).
Directors of the Company as at March 31, 2018 stood as under:
During fiscal 2018, two meetings of the NRC were held. The details of the composition of
1 Ms. Chanda Kochhar Chairperson and Nominee Director the NRC as on March 31, 2018 and attendance of the members at its meetings is as under:
2 Mr. N. S. Kannan Nominee Director
Name of the Member Designation Number of Committee
3 Mr. Guy Strapp Nominee Director Meetings attended
4 Mr. Suresh Kumar Independent Director Mr. Suresh Kumar Chairman 2
5 Mr. C. R. Muralidharan Independent Director Ms. Chanda Kochhar Member 2
6 Ms. Lakshmi Venkatachalam Independent Director Mr. Guy Strapp Member 2
7 Mr. Ved Prakash Chaturvedi Independent Director Mr. Ved Prakash Chaturvedi Member 2
8 Mr. Dilip Karnik Independent Director
INVESTMENT COMMITTEE
9 Mr. Nimesh Shah Managing Director During fiscal 2018, four meetings of the Investment Committee were held. The
10 Mr. Sankaran Naren Executive Director composition of the Investment Committee as on March 31, 2018 and attendance of
the members at its meetings is as under:
During fiscal 2018 there was no change in the composition of Board of Directors.
The Company has obtained the declarations from all the Independent Directors as per Section Name of the Member Designation Number of Committee
149 (6) of the Act. Meetings attended
None of the Directors of the Company are disqualified from being appointed as the Directors Mr. C. R. Muralidharan Chairman 4
as specified in Section 164 of the Act. Mr. N. S. Kannan Member 3
RETIREMENT BY ROTATION Mr. Nimesh Shah Member 4
In terms of Section 152 of the Companies Act, 2013, Ms. Chanda Kochhar would retire by
rotation at the forthcoming AGM and is eligible for re-appointment. Ms. Chanda Kochhar has COMMITTEE OF DIRECTORS
offered herself for re-appointment. During fiscal 2018, four meetings of the Committee of Directors were held. The
composition of the Committee of Directors as on March 31, 2018 and attendance of
KEY MANAGERIAL PERSONNEL the members at its meetings is as under:
In accordance with the provisions of Sections 2(51) and 203 of the Act, the following employees
are the Key Managerial Personnel of the Company: Name of the Member Designation Number of Committee
1. Mr. Nimesh Shah, Managing Director Meetings attended
2. Mr. Sankaran Naren, Executive Director Mr. N. S. Kannan Member 4
3. Mr. B. Ramakrishna, Chief Financial Officer Mr. Nimesh Shah Member 4

4. Mr. Rakesh Shetty, Company Secretary.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
NUMBER OF MEETINGS ATTENDED BY THE BOARD OF DIRECTORS In accordance with the provisions of Section 135 of Act, the Board constituted the
During fiscal 2018, five meetings of the Board of Directors were held. The attendance record Corporate Social Responsibility Committee (“the CSR Committee”).
of all Directors is as under: - During fiscal 2018, four meetings of the CSR Committee were held. The composition
of the CSR Committee as on March 31, 2018 and attendance of the members at its
Name of Director Number of meetings attended meetings are as under:
Ms. Chanda Kochhar 5
Name of the Member Designation Number of Committee
Mr. N. S. Kannan 5 Meetings attended
Mr. Guy Strapp 3 Mr. N. S. Kannan Chairman 2
Mr. C. R. Muralidharan 5 Mr. Nimesh Shah Member 4
Mr. Suresh Kumar 4 Ms. Lakshmi Venkatachalam Member 4
Ms. Lakshmi Venkatachalam 4
CSR ACTIVITIES
Mr. Ved Prakash Chathurvedi 5
In accordance with the provisions of Section 135 of the Act and the Rules made thereunder
Mr. Dilip Karnik 5 and relevant circulars issued from time to time by the Ministry of Corporate Affairs (MCA),
Mr. Nimesh Shah 5 the Company has adopted a Corporate Social Responsibility Policy (“CSR Policy”) which is
also available on the Website of the Company.
Mr. Sankaran Naren 5

473
 directors’ report
to the members,
The Company in line with the approved CSR policy undertakes the CSR Activities either
directly or through ICICI Foundation or through any other entity. The annual report on
CSR activities is enclosed herewith as Annexure A.
MEETING OF INDEPENDENT DIRECTORS
In accordance with schedule IV of the Act, all the independent directors of the Company
met once during fiscal 2018 to review the performance of Non-independent directors
and Board as a whole, performance review of the Chairperson of the Company and
evaluation of the flow of Information.
POLICY ON DIRECTOR’S APPOINTMENT AND REMUNERATION FOR THE
DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
The Company has in accordance with the provisions of Section 178 of the Act
devised a framework for identifying persons who are qualified to become directors,
including the criteria such as qualifications, positive attributes and independence of
a director. The Company has also framed a Compensation Policy which specifies that
the Company’s approach to compensation is intended to drive meritocracy within the
framework of prudent risk management. The Whole-time Directors of the Company are
granted stock options of the holding company i.e. ICICI Bank Limited (Bank) which is
issued pursuant to the Employee Stock Option Scheme of the Bank.
The Shareholders of the Company at the Extra-ordinary general meeting held on
August 23, 2016 approved the payment of profit related commission to the Non-
executive Directors of the Company other than Nominee Directors appointed by ICICI
Bank Limited and Prudential Corporation Holdings Limited from FY2016 onwards,
whereby such commission in aggregate shall not exceed one percent per annum of the
Net profits calculated in accordance with Section 198 of the Act, subject to maximum
limit of Rupees Seven Hundred and Fifty Thousand. The said commission shall be paid
to each Non-Executive Director in addition to the sitting fees and reimbursement of
expenses for attending the Board and/or Committee meetings.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has a Whistle Blower Policy which provides a mechanism to ensure
that concerns are properly raised, appropriately investigated and addressed. The
Whistle Blower Policy encourages employees to report matters without the risk of
subsequent victimisation, discrimination or disadvantage. The Company recognises
this mechanism as an important enabling factor in administering good governance
practices. The whistle blower policy of the Company is available on the website of
the Company.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti-Sexual Harassment Policy in line with the
requirements of The Sexual Harassment of Women at the Workplace (Prevention,
Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been
set up to redress complaints received regarding sexual harassment. All employees
(permanent, contractual, temporary, trainees) are covered under this policy. During the
year, the Company has not received any sexual harassment complaints.
RISK MANAGEMENT
The Company has an independent Risk Management and Control framework. The
Company on an ongoing basis performs risk identification, measurement and control
evaluation with an objective to administer risk and control effectiveness.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL
POSITION OF THE COMPANY OCCURRING AFTER BALANCE SHEET DATE:
There have been no material changes and commitments affecting the financial position
of the Company.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE
COMPANY
There were no significant/material orders passed by the regulators or courts or
tribunals impacting the going concern status of the Company and its operations in
future.
FOREIGN EXCHANGE EARNINGS AND EXPENDITURE ETC.
In fiscal 2018, your Company has earned ` 510.7 million (fiscal 2017 - ` 319.8 million) as
foreign exchange income and has incurred ` 97.0 million (fiscal 2017 - ` 64.9) towards
foreign exchange expenditure.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
In view of the nature of business activity of the Company, the provisions of Section
134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 relating
to Conservation of Energy and Technology Absorption do not apply to the Company.
The Company has, however, used information technology extensively in its operations.
474
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The internal financial controls of the Company have been devised to promote reliable
financial reporting, safeguarding of assets and prevention and detection of frauds and errors,
and commensurate with the business and the operations of the Company. The Audit and Risk
Committee of the Board of Directors in co-ordination with Statutory Auditors, reviews the
adequacy of Internal Control Systems within the Company.
AUDITORS
i. Statutory Auditors
 The Members at the 24th AGM had approved the appointment of M/s. Price
Waterhouse Chartered Accountants LLP as Statutory Auditors of your Company for
a period of five years.
The said appointment is subject to ratification by the members at the ensuing 25th AGM
of the Company.
ii. Secretarial Auditor
Pursuant to provisions of Section 204 of the Act read with the Companies (Appointment
and Remuneration of Managerial personnel) Rules, 2014, the Company had appointed
M/s. BNP & Associates, Company Secretaries to undertake the Secretarial Audit of the
Company for fiscal 2018. The Report of the Secretarial Auditor is annexed herewith as
Annexure B.
The Secretarial Audit Report does not contain any qualification, reservation or adverse
remark.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT - 9 in accordance
with Section 92(3) of the Act read with the Companies (Management and Administration)
Rules, 2014, are enclosed as ‘Annexure C’ to this report.
DIRECTORS’ RESPONSIBILITY STATEMENT
To the best of their knowledge and information and based on the information and explanations
provided to them by the Company, your Directors make the following statement in terms of
Section 134(3)(c) of the Act:
1. that in the preparation of the annual accounts for the year ended March 31, 2018,
the applicable accounting standards had been followed and there are no material
departures for the same;
2. that they have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at March 31, 2018 and of the profit and
loss of the company for that period;
3.  that proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities;
4. that the annual accounts of the Company have been prepared on a ‘going concern
basis’;
5. that proper systems to ensure compliance with the provisions of all applicable laws
were devised and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENT
Your Directors takes this opportunity to thank all its employees for their dedicated service
and firm commitment to the goals of the Company. Your Directors also wish to place on
record its sincere appreciation for the wholehearted support received from registrars,
custodians, bankers, legal advisors, agents, distributors and all other business associates.
Your Directors further wish to place on record their appreciation for the support and
cooperation received from the Securities and Exchange Board of India, the Reserve Bank
of India, Stock Exchanges, Depositories, Department of Investment and Public Asset
Management, all the parties associated with successful launch of BHARAT 22 ETF, ICICI Bank
Limited and Prudential Corporation Holdings Limited.
Your Directors wish to place on record their sincere thanks to the investors and clients for
their continued support and patronage.
We look forward to continued support of all these partners in progress.
.
For and on behalf of the Board
Sd/-
Place : Mumbai, Chanda Kochhar
Date : April 23, 2018 Chairperson
(DIN: 00043617)
directors’ report
Annexure A
ANNUAL REPORT ON CSR ACTIVITIES FOR THE FINANCIAL YEAR 2018
1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy
and projects or programs.

In terms of the provisions of section 135 of the Companies Act, 2013 (the Act), read with applicable Rules under the Companies (Corporate Social Responsibility) Rules, 2014, the
Company has framed its Corporate Social Responsibility Policy (“CSR Policy”).

The CSR Policy of the Company broadly describes overall framework for implementing, functioning and monitoring of CSR activities. The CSR Policy defines the broad framework of
areas where CSR activities may be undertaken by the Company directly or through any not-for-profit entities including ICICI Foundation for Inclusive Growth (IFIG), with primary focus
on the following areas:
1) Skill development and sustainable livelihoods;
2) Education;
3) Rural development;
4) Health care;
5) Sanitation;
6) Support employee engagement in CSR activities;
7) Capacity building for corporate social responsibility;
8) Other areas viz. continue to provide support to specific needs such as during natural disasters, through financial as well as logistical support.

The CSR Policy of the Company is available on the website of the Company. Following is the link of the Company’s website: https://www.icicipruamc.com.

2. The Composition of the CSR Committee:

The CSR Committee comprises three members as detailed herein below:
1) Mr. N. S. Kannan, Chairman
2) Ms. Lakshmi Venkatachalam, Member
3) Mr. Nimesh Shah, Member
The functions of the Committee include: formulation and recommendation to the Board of a CSR Policy indicating the activities to be undertaken by the Company and
recommendation of the amount of the expenditure to be incurred on such activities; reviewing and recommending the annual CSR plan to the Board and monitoring the CSR
activities, implementation of and compliance with the CSR Policy.

3. Average net profit of the company for the last three financial years.

Average net profit of the company for the last three financial years calculated as specified by the Companies Act 2013: ` 5.39 billion

4. Prescribed CSR Expenditure for the FY2018 (two per cent of the amount as in item 3 above).
Prescribed CSR Expenditure for the FY2018 (two per cent of the amount as in item 3 above): ` 107.7 million.

5. Details of CSR spent during the financial year.

(a) Total amount to be spent for the financial year:
Total amount spent towards CSR during FY2018 was ` 107.7 million.
(b) Amount unspent, if any: Nil
(c) Manner in which the amount spent during the financial year is detailed below: (` in million)

Sl. CSR Sector Projects or programs Amount in outlay Amount in spent Cumulative Amount spent in:
No. project or in which (1) Local area or other (budget) project or on the projects expenditure Direct or through
activity the Project is (2) Specify the State and district programs wise or programs upto the implementing agency
identified covered where projects or programs was Sub heads: reporting
undertaken Period
1. Projects of ICICI • Promoting Pan-India 107.74 Expenditure on 270.30 Amount spent through
Foundation for sustainable Projects and ICICI Foundation for
Inclusive* Growth livelihood Administration : Inclusive Growth. The
(IFIG). through 107.74 Foundation was set
vocational skill up in 2008 to focus on
development activities in the area
projects of CSR.

• Promoting
education

*Includes cumulative contribution of ` 162.56 million as on March 31, 2017.

6. In case the company has failed to spend the 2% of the average net profits of the last three financial years or any part thereof, the company shall provide the reasons
for not spending the amount in its Board report.
Not Applicable as the entire amount was spent.

7. The CSR Committee of the Company hereby certifies that the implementation and monitoring of CSR activities are in compliance with the CSR objectives and Policy
of the Company.
The CSR Committee of the Company hereby certifies that the implementation and monitoring of CSR activities are in compliance with the CSR objectives and Policy of
the Company.

Sd/- Sd/-
Nimesh Shah N.S. Kannan
Managing Director Chairman of CSR Committee
DIN: 01709631 DIN: 00066009

475
 directors’ report
to the members,
SECRETARIAL AUDIT REPORT
For the year ended March 31, 2018
[Pursuant to provision of section 204(1) of the Companies Act,2013 and Rules No. 9
of the Companies (Appointment And Remuneration Personnel) Rules,2014
To
The Members
ICICI Prudential Asset Management Company Limited
2nd Floor, Block B-2, Nirlon Knowledge Park
Western Express Highway
Goregaon (East), Mumbai 400 063
We have conducted the Secretarial Audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by ICICI Prudential
Asset Management Company Limited having CIN No. U99999DL1993PLC054135
(hereinafter called ‘the Company’) for the year ended on March 31, 2018 (‘the audit
period’). Secretarial Audit was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory compliances and expressing
our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and
returns filed and other records maintained by the Company and also the information
provided by the Company, its officers, agents and authorized representatives during
the conduct of Secretarial Audit; we hereby report that in our opinion, the Company
has, during the audit period complied with the statutory provisions listed hereunder
and also that the Company has proper Board-processes and compliance mechanism
in place to the extent, in the manner and subject to the reporting made hereinafter.
We have examined the books, papers, minute books, forms and returns filed and
other records maintained by the Company for the financial year ended on March 31,
2018 according to the provisions of:
(i) The Companies Act, 2013 (‘the Act’) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (SCRA) and the Rules made
thereunder;
The Depositories Act, 1996 and the Regulations and Bye-laws framed
(iii) 
thereunder;
The following Regulations and Guidelines prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBI Act’):
a. The Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 2015;
b. The Securities and Exchange Board of India (Registrars to an Issue and Share
Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing
with client;
c. The Securities and Exchange Board of India (Alternative Investment Funds)
Regulation, 2012;
d. The Securities and Exchange Board of India (Mutual Fund) Regulation, 1996
e. The Securities and Exchange Board of India (Portfolio Managers) Regulation,
1993.
We have also examined compliance with the applicable clauses of the Secretarial
Standards issued by the Institute of Company Secretaries of India related to
meetings and minutes.
During the period under review, the Company has complied with the provisions of
the Act, Rules, Regulations, Guidelines, Standards etc. mentioned above.
Annexure A
To,
The Members,
ICICI Prudential Asset Management Company Limited
Secretarial Audit Report of even date is to be read along with this letter.
1. The compliance of provisions of all laws, rules, regulations, standards applicable
to ICICI Prudential AMC Limited (the ‘Company’) is the responsibility of the
management of the Company. Our examination was limited to the verification
of records and procedures on test check basis for the purpose of issue of the
Secretarial Audit Report.
2. Maintenance of secretarial and other records of applicable laws is the
responsibility of the management of the Company. Our responsibility is to issue
Secretarial Audit Report, based on the audit of the relevant records maintained
and furnished to us by the Company, along with explanations where so required.
3. We have followed the audit practices and processes as were appropriate to
obtain reasonable assurance about the correctness of the contents of the
secretarial and other legal records, legal compliance mechanism and corporate
conduct. The verification was done on test check basis to ensure that correct
476
ANNEXURE B
During the period under review, provisions of the following regulations were not
applicable to the Company:
(i) The Securities and Exchange Board of India (Substantial Acquisition of Shares
and Takeovers) Regulations, 2011;
(ii) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009;
(iii) The Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015;
(iv) The Securities and Exchange Board of India (Share Based Employee Benefits)
Regulations, 2014;
(v) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)
Regulations, 2008;
(vi)  The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009;
(vii) The Securities and Exchange Board of India (Buyback of Securities) Regulations,
1998; and
Foreign Exchange Management Act, 1999 and the Rules and Regulations
(viii) 
made thereunder to the extent of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings;
We further report that–
The Board of Directors of the Company is duly constituted with proper balance
of Executive Directors, Non-Executive Directors and Independent Directors. The
changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and
detailed notes on agenda were sent at least seven days in advance, and a system
exists for seeking and obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at the meeting.
Decisions at the meetings of the Board of Directors of the Company were carried
through on the basis of majority. There were no dissenting views by any member of
the Board of Directors during the year under review.
We further report that –
There are adequate systems and processes in the Company commensurate with
the size and operations of the Company to monitor and ensure compliance with the
applicable laws, rules, regulations and guidelines.
We further report that –
During the audit period there was no specific event/action having a major bearing
on the company’s affairs in pursuance to the above referred laws, rules, regulations,
guidelines etc. referred to above.
For BNP & Associates
Company Secretaries
[Firm Regn. No. P2014MH037400]
Sd/-
Prakash K. Pandya
Partner
Place: Mumbai FCS No.: 3901
Date: April 21, 2018 C P No.: 2311
Note: This report is to be read with our letter of even date which is annexed as
Annexure A and forms an integral part of this report.
facts as reflected in secretarial and other records were produced to us. We
believe that the processes and practices we followed, provides a reasonable
basis for our opinion for the purpose of issue of the Secretarial Audit Report.
4. We have not verified the correctness and appropriateness of financial records
and Books of Accounts of the Company.
5. Wherever required, we have obtained the management representation about the
compliance of laws, rules and regulations and major events during the audit period.
6. The Secretarial Audit Report is neither an assurance as to the future viability of
the Company nor of the efficacy or effectiveness with which the management
has conducted the affairs of the Company.
For BNP & Associates
Company Secretaries
[Firm Regn. No. P2014MH037400]
Sd/-
Prakash K. Pandya
Partner
Place: Mumbai FCS No.: 3901
Date: April 21, 2018 C P No.: 2311
directors’ report
Annexure C
Form No. MGT-9 III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
EXTRACT OF ANNUAL RETURN
AS ON THE FINANCIAL YEAR ENDED ON MARCH 31, 2018 Sl. NAME AND CIN/GLN HOLDING/ % of Applicable
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the No. ADDRESS OF THE SUBSIDIARY/ shares Section
Companies (Management and Administration) Rules, 2014] COMPANY ASSOCIATE held
1 ICICI Bank Limited L65190GJ- Holding 51% 2(46)
I. REGISTRATION AND OTHER DETAILS: ICICI Bank Tower 1994PLC021012
near Chakli
i) CIN:- U99999DL1993PLC054135
Circle Road,
ii) Registration Date: June 22, 1993 Old Padra Road,
iii) Name of the Company: ICICI Prudential Asset Management Company Limited Vadodara 390007
iv) Category / Sub-Category of the Company: Company Limited by Shares 2 Prudential Foreign Com- Associate 49% 2(6)
v) Address of the registered office and contact details: 12th Floor, Narain Corporation pany
Manzil 23, Barakhamba Road, New Delhi-110001.Tel no.022-26852000 Holdings Limited
vi) Whether listed company: No
Laurence Pountney
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any:
Hill, London,
3i Infotech Limited Tower #5, 3rd to 6th floor, International Infotech Park,
EC4R 0HH, United
Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, India Tel. :
Kingdom.
(+91 - 22) 6792 8000 Fax : (+91 - 22) 6792 8098.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the
company are as under:-

Sl. Name and Description of NIC Code of the % to total turnover of

No. main products / services Product/service the company
1 Management Fees from the 66301 90.21
Schemes of ICICI Prudential
Mutual fund

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Sl. Category of shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change during
No. Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares
A. Promoters
(1) Indian
(a) Individual/HUF  -  -  -  -  -  -  -  -  -
(b) Central Govt  -  -  -  -  -  -  -  -  -
(c) State Govt (s)  -  -  -  -  -  -  -  -  -
(d) Bodies Corporate  -  -  -  -  -  -  -  -  -
(e) Banks / FI 9,001,873 - 9,001,873 50.996 9,001,873 - 9,001,873 50.996 Nil
(f) Any Other…. - 700 700 0.004 - 700 700 0.004 -
Sub-total (A) (1) 9,001,873 700 9,002,573 51 9,001,873 700 9,002,573 51 Nil
(2) Foreign
a) NRIs - Individuals - - - - - - - - -
b) Other -Individuals - - - - - - - - -
c) Bodies Corp. 8,649,517 Nil 8,649,517 49 8,649,517 Nil 8,649,517 49 Nil
d) Banks / FI - - - - - - - - -
e) Any Other…. - - - - - - - - -
Sub-total (A) (2):- 8,649,517 Nil 8,649,517 49 8,649,517 Nil 8,649,517 49 Nil
Total shareholding of Promoter (A) = (A) 17,651,390 700 17,652,090 100 17,651,390 700 17,652,090 100 Nil
(1)+(A)(2)
B. Public Shareholding
(1) Institutions
(a) Mutual Funds - - - - - - - - -
(b) Banks/FI - - - - - - - - -
(c) Central Govt - - - - - - - - -
(d) State Govt(s) - - - - - - - - -
(e) Venture Capital Funds - - - - - - - - -
(f) Insurance Companies - - - - - - - - -
(g) FIIs - - - - - - - - -
(h) Foreign Venture Capital Funds - - - - - - - - -
i) Others (specify) - - - - - - - - -
Sub-total (B)(1):- - - - - - - - - -

477
 directors’ report
to the members, Annexure D

Sl. Category of shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change during
No. Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares
2. Non-Institutions - - - - - - - - -

a)   Bodies Corp. - - - - - - - - -

i) Indian - - - - - - - - -

ii) Overseas - - - - - - - - -

b) Individuals - - - - - - - - -

i) Individual shareholders holding nominal share - - - - - - - - -

capital upto `1 lakh

ii) Individual shareholders holding nominal share - - - - - - - - -

capital in excess of ` 1 lakh

c) Others (specify) - - - - - - - - -

Sub-total (B)(2):- - - - - - - - - -

Total Public Shareholding (B)=(B)(1)+ (B)(2) - - - - - - - - -

C. Shares held by - - - - - - - - -

Custodian for GDRs & ADRs Nil Nil Nil Nil Nil Nil Nil Nil Nil

Grand Total (A+B+C) 17,651,390 700 17,652,090 100 17,651,390 700 17,652,090 100 Nil

(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year
No
No. of Shares % of total Shares % of Shares No. of Shares % of total % of Shares % change in
of the Company Pledged/ Shares of the Pledged/ shareholding
encumbered to Company encumbered to during the year
total shares total shares
1 ICICI Bank Limited* 9,002,573 51 Nil 9,002,573 51 Nil Nil
2 Prudential Corporation Holdings Limited 8,649,517 49 Nil 8,649,517 49 Nil Nil

*Out of the above 9,002,573 shares held by ICICI Bank Limited, 700 shares are beneficially held by ICICI Bank Limited and registered in the name of various nominees.

iii) Change in Promoters’ Shareholding

Sl. For Each of Shareholding at the beginning of the year Cumulative Shareholding during the year
No the Top 10 Shareholders No. of shares % of total No. of shares % of total shares of
shares of the company the company
At the beginning of the year
Date wise Increase / Decrease in Promoters Share
holding during the year specifying the reasons for No changes
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl. For Each of Shareholding at the beginning of the year Cumulative Shareholding during the year
No the Top 10 Shareholders No. of shares % of total No. of shares % of total shares of
shares of the company the company
At the beginning of the year
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase / Nil, for shares held by top ten shareholders other than directors,
decrease (e.g. allotment / transfer / bonus promoters and holders of GDR and ADRs.
/ sweat equity etc):
At the End of the year ( or on the date of separation,
if separated during the year)

478
 directors’ report
to the members,

v) Shareholding of Directors and Key Managerial Personnel:

Sl. For Each of the Directors and KMP Shareholding at the beginning of the year Cumulative Shareholding during the year
No No. of shares % of total No. of shares % of total shares of
shares of the company the company
At the beginning of the year
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / Nil
bonus/ sweat equity etc):
At the End of the year

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment (`’ in million)

Secured Loans Unsecured Loans Deposits Total Indebtedness

excluding deposits
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid Nil Nil Nil Nil
iii) Interest accrued but not due
Total (i+ii+iii) Nil Nil Nil Nil
Change in Indebtedness during the financial year
• Addition Nil Nil Nil Nil
• Reduction
Net Change Nil Nil Nil Nil
Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid Nil Nil Nil Nil
iii) Interest accrued but not due
Total (i+ii+iii) Nil Nil Nil Nil

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

(`’ in million)
Sl. Particulars of Remuneration Name of MD/WTD/Manager
No Nimesh Shah Sankaran Naren Total
Managing Director and Chief Executive Director and Chief
Executive Officer Investment Officer
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 51.98 32.98 84.85
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.44 0.11 0.55
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
2. Stock Options * *
3. Sweat Equity - - -
4. Commission
- as % of profit - - -
- others, specify.
5. Others, please specify - - -
Total (A) 52.42 32.98 85.40
Ceiling as per the Act 478.38 478.38 956.76

Note: *The Managing Director and the Executive Director are granted stock options from ICICI Bank Limited, in line with ICICI Bank Group Policy.

479
 directors’ report
to the members,

B. Remuneration to other Directors: (`’ in million)

Sl. Particulars of Name of Directors Total
No. Remuneration Amount
C.R. Muralidharan Ved Prakash Suresh Kumar Lakshmi Dilip
Chaturvedi Venkatachalam Karnik
1. Independent Directors
• Fee for attending board / committee meetings 0.58 0.62 0.50 0.56 0.54 2.80
• Commission 0.75 0.75 0.75 0.75 0.75 3.75
• Others, please specify - - - - - -
Total (1) 1.33 1.37 1.25 1.31 1.29 6.55
2. Other Non-Executive Directors
• Fee for attending board /committee meetings - - - - - -
Total (2) - - - - - -
Total (B)=(1+2) 1.33 1.37 1.25 1.31 1.29 6.55
Total Managerial Remuneration
Overall Ceiling as per the Act (applicable for all the directors taken together) 1,052.44

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD (`’ in million)

Sl. Particulars of Remuneration Key Managerial Personnel
No B. Ramakrishna Rakesh Shetty Total
Chief Financial Officer Company Secretary
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 24.51 4.54 29.05
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.04 0.03 0.37
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission
- as % of profit - - -
- others, specify…
5. Others, please specify - - -
Total 24.55 4.57 29.12

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Sections of the Brief Description Details of Penalty/Punishment/ Authority [RD/ Appeal made, if
Companies Act Compounding fees imposed NCLT/COURT] any (give Details)
A. COMPANY
Penalty
Punishment NIL
Compounding
B. DIRECTORS
Penalty
Punishment NIL
Compounding
C.OTHER OFFICERS IN DEFAULT
Penalty
Punishment NIL
Compounding

480
independent auditors’ report
to the members of ICICI Prudential Asset Management Company Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of ICICI Prudential
Asset Management Company Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
2. 
The Company’s Board of Directors is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the
preparation of these financial statements to give a true and fair view of the
financial position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including
the Accounting Standards specified under Section 133 of the Act, read with Rule
7 of the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records relevant to the preparation and
presentation of the financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these financial statements based
on our audit.
4. We have taken into account the provisions of the Act and the Rules made
thereunder including the accounting standards and matters which are required
to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
5. 
specified under Section 143(10) of the Act and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of India.
Those Standards and pronouncements require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures
selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company’s preparation of the financial
statements that give a true and fair view, in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the Company’s Directors, as well as evaluating
the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the financial statements.
Opinion
8. 
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information
required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2018, and its profit and its cash
flows for the year ended on that date.
Other Matter
9. The financial statements of the Company for the year ended March 31, 2017,
were audited by another firm of chartered accountants under the Companies
Act, 2013 who, vide their report dated April 18, 2017, expressed an unmodified
opinion on those financial statements.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. 
As required by ‘the Companies (Auditor’s Report) Order, 2016’, issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act
(hereinafter referred to as the “Order”), and on the basis of such checks of the books
and records of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure B a statement
on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books.
(c) 
The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of account.
(d) 
In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as
on March 31, 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2018 from being appointed as a
director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference
to financial statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditors’ Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our knowledge and belief and according to
the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as
at March 31, 2018 on its financial position in its financial statements –
Refer Note 30.
ii. The Company has long-term contracts as at March 31, 2018 for which
there were no material foreseeable losses. The Company did not have
any derivative contracts as at March 31, 2018.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended March 31, 2018.
iv. The reporting on disclosures relating to Specified Bank Notes is not
applicable to the Company for the year ended March 31, 2018. – Refer
Note 37.
For Price Waterhouse
Chartered Accountants LLP
Firm Registration Number: FRN 012754N/ N500016
Sd/-
Vivek Prasad
Mumbai Partner
April 23, 2018 Membership Number 104941
481
 independent auditors’ report
Annexure A to Independent Auditors’ Report Annexure A
Referred to in paragraph 11(f) of the Independent Auditors’ Report of even date to the
members of ICICI Prudential Asset Management Company Limited on the financial
statements for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-
section 3 of Section 143 of the Act
1. 
We have audited the internal financial controls over financial reporting of
ICICI Prudential Asset Management Company Limited (“the Company”) as of
March 31, 2018 in conjunction with our audit of the financial statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit
in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing
deemed to be prescribed under section 143(10) of the Act to the extent
applicable to an audit of internal financial controls, both applicable to an audit
of internal financial controls and both issued by the ICAI. Those Standards
and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting
and their operating effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial
controls system over financial reporting.
482
Meaning of Internal Financial Controls Over Financial Reporting
6. 
A company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s
internal financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
7. Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial
controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2018,
based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: FRN 012754N/ N500016
Sd/-
Vivek Prasad
Mumbai Partner
April 23, 2018 Membership Number 104941
independent auditors’ report
Annexure B to Independent Auditors’ Report Annexure B
Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the viii. As the Company does not have any loans or borrowings from any financial
members of ICICI Prudential Asset Management Company Limited on the financial institution or bank or Government, nor has it issued any debentures as at
statements as of and for the year ended March 31, 2018 the balance sheet date, the provisions of Clause 3(viii) of the Order are not
i. (a) 
The Company is maintaining proper records showing full particulars, applicable to the Company.
including quantitative details and situation, of fixed assets. ix. The Company has not raised any moneys by way of initial public offer, further
(b) 
The fixed assets are physically verified by the Management according public offer (including debt instruments) and term loans. Accordingly, the
to a phased programme designed to cover all the items over a period of provisions of Clause 3(ix) of the Order are not applicable to the Company.
3 years which, in our opinion, is reasonable having regard to the size of x. During the course of our examination of the books and records of the Company,
the Company and the nature of its assets. Pursuant to the programme, a carried out in accordance with the generally accepted auditing practices in India,
portion of the fixed assets has been physically verified by the Management and according to the information and explanations given to us, we have neither
during the year and no material discrepancies have been noticed on such come across any instance of material fraud by the Company or on the Company
verification. by its officers or employees, noticed or reported during the year, nor have we
(c) The Company does not own any immovable properties as disclosed in Note been informed of any such case by the Management.
10 on fixed assets to the financial statements. Therefore, the provisions of xi. The Company has paid/ provided for managerial remuneration in accordance
Clause 3(i)(c) of the said Order are not applicable to the Company. with the requisite approvals mandated by the provisions of Section 197 read
ii. The Company is in the business of rendering services, and consequently, does with Schedule V to the Act.
not hold any inventory. Therefore, the provisions of Clause 3(ii) of the said Order xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not
are not applicable to the Company. applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to
iii. The Company has not granted any loans, secured or unsecured, to companies, the Company.
firms, Limited Liability Partnerships or other parties covered in the register xiii. The Company has entered into transactions with related parties in compliance with
maintained under Section 189 of the Act. Therefore, the provisions of Clause the provisions of Sections 177 and 188 of the Act. The details of such related party
3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company. transactions have been disclosed in the financial statements as required under
iv. The Company has not granted any loans or made any investments, or provided Accounting Standard (AS) 18, Related Party Disclosures specified under Section
any guarantees or security to the parties covered under Section 185 and 186. 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to xiv. The Company has not made any preferential allotment or private placement of
the Company. shares or fully or partly convertible debentures during the year under review.
v. The Company has not accepted any deposits from the public within the meaning Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to
of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the the Company.
extent notified. xv.  The Company has not entered into any non cash transactions with its directors
vi. The Central Government of India has not specified the maintenance of cost or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the
records under sub-section (1) of Section 148 of the Act for any of the products Order are not applicable to the Company.
of the Company. xvi. 
The Company is not required to be registered under Section 45-IA of the
vii. (a) According to the information and explanations given to us and the records Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of
of the Company examined by us, in our opinion, the Company is regular the Order are not applicable to the Company.
in depositing the undisputed statutory dues, including provident fund,
employees’ state insurance, income tax, service tax, cess, goods and
service tax with effect from July 1, 2017 and other material statutory dues,
as applicable, with the appropriate authorities. For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: FRN 012754N/ N500016
(b) According to the information and explanations given to us and the records
of the Company examined by us, the particulars of dues of income tax and
service tax as at March 31, 2018 which have not been deposited on account Sd/-
of a dispute, are as follows: Vivek Prasad
Name of The Nature of Amount Period to which Forum where the Mumbai Partner
Statute Dues April 23, 2018 Membership Number 104941
(` in million) the amount relates dispute is pending)
Income Tax Act, 1961 Income Tax 1.1 AY 2006 – 07 Commissioner of
Income Tax (Appeals)
Service Tax Act, 1994 Service Tax 1.3 April 2008 to March Service Tax
2011 Commissioner
Service Tax Act, 1994 Service Tax 2.8 April 2011 to March Service Tax
2013 Commissioner
Service Tax Act, 1994 Service Tax 4.7 April 2014 to March Service Tax
2015 Commissioner

483
 balance sheet statement of profit and loss
as at March 31, 2018 for the year ended March 31, 2018

(` in million))
(` in million)
Notes March 31, March 31, Note March 31, March 31,
2018 2017 2018 2017
Equity and liabilities
Income
Shareholders’ funds
Share capital 3 176.5 176.5 Revenue from operations 20 18,186.4 13,008.6
Reserves and surplus 4 8,056.8 7,155.2
8,233.3 7,331.7 Other income 21 779.5 488.7
Non-current liabilities
Other long term liabilities 5 165.0 166.0 Total revenue 18,965.9 13,497.3
Long term provisions 6 335.3 231.6
500.3 397.6 Expenses
Current liabilities
Trade Payables 7 Employee benefits expense 22 2,133.5 1,753.2
Total outstanding dues of micro 0.8 -
enterprises and small enterprises; Depreciation and amortization expense 138.6 105.3
and
Total outstanding dues of creditors 1,582.9 1,355.8 Other expenses 23 7,202.7 4,291.9
other than micro enterprises and
small enterprises Total expenses 9,474.8 6,150.4
Other current liabilities 8 1,225.5 750.8
Short-term provisions 9 126.3 137.4 Profit before tax 9,491.1 7,346.9
2,935.5 2,244.0
TOTAL 11,669.1 9,973.3 Tax expense:
Assets
Non-current assets - Current tax 3,354.5 2,610.9
Fixed assets
Tangible assets 10 297.0 223.0 - Short/(Excess) provision of earlier years (49.8) (37.5)
Intangible assets 11 25.8 30.3
Capital work-in-progress 15.7 15.9 - Deferred tax expense / (credit) (69.1) (31.2)
Intangible assets under 60.1 9.1
development Profit for the year 6,255.5 4,804.7
Non-current investments 12 2,650.8 2,551.7
Deferred tax assets (net) 13 232.6 163.5 Earnings per share [Nominal Value per 27 354.38 272.19
Long term loans and advances 14 1,050.2 984.1 share ` 10 (31 March 2017: ` 10)] – Basic
4,332.2 3,977.6 and Diluted (in `)
Current assets
Current investments 15 3,900.0 3,935.6 The Significant accounting policies and 2-37
Trade receivables 16 1,170.0 728.6 accompanying notes are an integral part
Cash and bank balances 17 104.3 19.2 of these financial statements
Short-term loans and advances 18 2,077.8 1,277.1
Other current assets 19 84.8 35.2
This is the Statement of Profit and Loss Account referred to our report of even date.
7,336.9 5,995.7
TOTAL 11,669.1 9,973.3

The Significant accounting policies and 2 – 37

accompanying notes are an integral part
of these financial statements
This is the Balance Sheet referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm’s Registration No: 012754N/N500016 ICICI Prudential Asset Management Company Limited

Sd/- Sd/- Sd/- Sd/-

Vivek Prasad Chanda Kochhar Ved Prakash Chaturvedi Nimesh Shah
Partner Chairperson Director Managing Director
Membership No: 104941 DIN No:00043617 DIN No:00030839 DIN No:01709631

Sd/- Sd/-
B. Ramakrishna Rakesh Shetty
Chief Financial Officer Company Secretary

Mumbai, April 23, 2018 Mumbai, April 23, 2018

484
cash flow statement
for the year ended March 31, 2018

(` in million)
March 31, March 31,
2018 2017
Cash flow from operating activities
Net profit before tax for the year 9,491.1 7,346.9
Adjustment for:
Depreciation and amortization expenses 138.6 105.3
(Profit)/Loss on sale of fixed assets 0.1 0.5
Provision (reversal) of Impairment (17.9) 36.9
Liability no longer required written back (3.1) -
Dividend income from investments (15.0) (3.4)
Interest income from investments (92.5) (102.6)
(Profit)/Loss on sale of investments (net) (593.5) (357.4)
Amortised income/expenses from prepaid - 72.5
Operating Profits before Working Capital Changes 8,907.8 7,098.7
Working capital changes
(Decrease)/Increase in long term provisions 103.7 74.1
(Decrease)/Increase in short term provisions (6.5) 52.3
(Decrease)/Increase in trade payables 231.1 547.5
(Decrease)/Increase in other current liabilities 510.6 (2.9)
(Decrease)/Increase in Other Long term liabilities (1.0) (21.4)
Decrease/(Increase) in long-term loans and advances 75.8 581.0
Decrease/(Increase) in trade receivables (441.4) (120.9)
Decrease/(Increase) in short-term loans and advances (800.7) 414.0
Decrease/(Increase) in other current assets (55.7) (26.1)
Cash generated from/ (used in) operations 8,523.7 8,596.3
Taxes paid (net of refunds) (3,451.3) (2,576.7)
Net cash generated from / (used in) by operating activities 5,072.4 6,019.7
Cash flow from investing activities
Purchase of tangible assets/capital work-in-progress/intangible assets (264.4) (154.8)
Purchase /(sale) of investments, (net) 547.8 (2,466.2)
Proceeds from sale of fixed assets 5.5 2.4
Dividend received 16.0 0.4
Interest received 97.6 101.0
Net Cash generated from /(used in) in Investing activities 402.5 (2,517.2)
Cash flow from financing activities
Dividends paid (4,448.3) (3,195.0)
Dividend Distribution Tax Paid (941.5) (373.8)
Net cash generated /(used) in financing activities (5,389.8) (3,568.8)
Net (decrease)/increase in cash and cash equivalents (A) 85.1 (66.3)
Add: Cash and cash equivalents at the beginning of the year (B) 19.2 85.5
Cash and cash equivalents at the end of the year (A+B) 104.3 19.2

Notes to the statement of cash flow :

1) Cash and cash equivalents comprise of:
Cash on hand - -
Balances with banks 104.3 19.2
Total 104.3 19.2
2) The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Accounting Standard-3 “Cash Flow Statements” specified under Section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
This is the Cash Flow Statement referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm’s Registration No: 012754N/N500016 ICICI Prudential Asset Management Company Limited

Sd/- Sd/- Sd/- Sd/-

Vivek Prasad Chanda Kochhar Ved Prakash Chaturvedi Nimesh Shah
Partner Chairperson Director Managing Director
Membership No: 104941 DIN No:00043617 DIN No:00030839 DIN No:01709631

Sd/- Sd/-
B. Ramakrishna Rakesh Shetty
Chief Financial Officer Company Secretary

Mumbai, April 23, 2018 Mumbai, April 23, 2018

485
 notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million)
1 Background
 ICICI Prudential Asset Management Company Limited (‘the Company’) was
incorporated on June 22, 1993.
The principal shareholders of the Company are ICICI Bank Limited (51%) (‘the
Holding Company’) and Prudential Corporation Holdings Limited (49%).
The Company has received an approval from Securities and Exchange Board
of India (SEBI) for acting as the investment manager to ICICI Prudential Mutual
Fund (the Fund). The Company is registered under SEBI (Portfolio Managers)
Regulations, 1993 for providing portfolio management services. The Company
is also providing investment management services to ICICI Prudential Venture
Capital Fund and alternative investment funds launched under SEBI (Alternative
Investment Funds) Regulations, 2012. Further, the Company provides advisory
services to clients and provides various administrative services to the funds
managed by it.
2 Significant accounting policies
The accounting policies set out below have been applied consistently to the
periods presented in these financial statements
2.1 Basis of preparation
These financial statements have been prepared in accordance with the generally
accepted accounting principles in India under the historical cost convention on
accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule
7(1) of the Companies (Accounts) Rules, 2014, till the standards of accounting
or any addendum thereto are prescribed by Central Government in consultation
and recommendation of the National Financial Reporting Authority, the existing
Accounting Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to comply
in all material aspects with the accounting standards notified under Section
211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules,
2006, as amended] and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or non-current as
per the Company’s operating cycle and other criteria set out in the Schedule
III (Division I) to the Companies Act, 2013. Based on the nature of services
and the time between the rendering of services for processing and their
realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current – non current
classification of assets and liabilities.
2.2 Use of estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles (‘GAAP’) requires management to make
estimates and assumptions that affect the reported amount of assets, liabilities
and disclosure of contingent liabilities on the date of the financial statements
and the reported revenue and expenses during the reporting period. The
estimates and assumptions used in the accompanying financial statements are
based upon management’s evaluation of the relevant facts and circumstances
as of the date of the financial statements. Actual results may differ from those
estimates. Any revision to accounting estimates is recognised prospectively in
current and future periods.
2.3 Fixed assets and depreciation
Fixed assets are stated at cost of acquisition less accumulated depreciation /
amortisation & impairment loss if any. Cost includes all expenses incidental to
the acquisition of the fixed assets and any attributable cost of bringing the asset
to its working condition for its intended use. Subsequent costs related to an item
of Property, Plant and Equipment are recognised in the carrying amount of the
item if the recognition criteria are met. An item of Property, Plant & Equipment
is derecognised on disposal or when no future economic benefits are expected
from its use or disposal. The gain or loss arising on derecognition is recognised
in the statement of Profit and Loss. Depreciation is charged over the estimated
useful life of a fixed asset on a straight line basis.
Further, as disclosed in table below, based on technical evaluation done by
management’s expert, the estimated useful life of fixed assets of the Company
is different from useful life prescribed in Schedule II of the Companies Act, 2013.
Based on the nature of fixed assets used by the Company and past experience
of its usage, the Company considers that the useful life for respective assets to
be appropriate.
Nature of Fixed Assets Management Useful life as per the limits
Estimate of Useful prescribed in Schedule
Life in years II of the Companies Act,
2013 in Years
Furniture & fixtures 6 10
Computers – (Servers & 3 6
Networks)
Office Equipment 3 -10 5 Advisory fees are recognised on an accrual basis in accordance with the
Vehicles 5 8
Depreciation is provided on a pro-rata basis on the straight-line method over
the estimated useful lives of the assets, in order to reflect the actual usage of the
486
Continued
assets. The depreciation charge for each period is recognised in the Statement
of Profit and Loss, unless it is included in the carrying amount of any other asset.
The useful life, residual value and the depreciation method are reviewed at least
at each financial year end. If the expectations differ from previous estimates, the
changes are accounted for prospectively as a change in accounting estimate.
Intangible assets are stated at acquisition cost, net of accumulated amortization
and accumulated impairment losses, if any. Intangible assets are amortised on
a straight line basis over their estimated useful lives. A rebuttable presumption
that the useful life of an intangible asset will not exceed ten years from the
date when the asset is available for use is considered by the management. The
amortisation period and the amortisation method are reviewed at least at each
financial year end. If the expected useful life of the asset is significantly different
from previous estimates, the amortisation period is changed accordingly.
Gains or losses arising from the retirement or disposal of an intangible asset
are determined as the difference between the net disposal proceeds and the
carrying amount of the asset and recognised as income or expense in the
Statement of Profit and Loss.
Leasehold improvements are amortised over the period of the lease on straight-
line basis or useful life of the asset whichever is lower.
Intangible assets comprising software purchased or developed and licensing
costs are depreciated on straight line basis over the useful life of the software
up to a maximum of three years commencing from the month in which such
software is first utilised.
Assets individually costing Rupees Five Thousand or less are fully depreciated
in the year of purchase or acquisition.
The Company provides pro-rata depreciation from the day the asset is ready to
use and for any asset sold, till the date of sale.
2.4 Impairment of assets
The Company assesses at each balance sheet date whether there is any
indication that an asset (tangible and intangible) may be impaired. If any such
indication exists, the Company estimates the recoverable amount of the asset
to which the asset belongs to or the cash generating unit. If such estimated
recoverable amount of the asset is less than the carrying amount, the carrying
amount is reduced to its estimated recoverable amount. The reduction is treated
as an impairment loss and is recognised in the statement of profit and loss.
Assessment is also done at each balance sheet date as to whether there is any
indication that an impairment loss recognised for an asset in prior accounting
periods may no longer exist or may have decreased. An impairment loss is
reversed to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined if no impairment loss had
previously been recognised.
2.5 Investments
Investments that are readily realisable and are intended to be held for not more
than one year from the date on which such investments are made, are classified
as current investments. All other investments are classified as long term
investments. Current investments are carried at cost or fair value, whichever
is lower. Long-term investments are carried at cost. However, provision for
diminution is made to recognise a decline, other than temporary, in the value
of long-term investments, such reduction being determined and made for each
investment individually.
Purchase and sale of investments are recorded on trade date. The gains or
losses on sale of investments are recognised in the statement of profit and loss
on the trade date on the basis of First In First Out (‘FIFO’) method.
2.6 Revenue recognition
Revenue is recognised when there is a reasonable certainty of its ultimate
realisation / collection. Revenue is measured using the proportionate completion
method when no significant uncertainty exists regarding the amount of the
consideration that will be derived from rendering the service and are recognised
net of service tax/Goods and Service Tax.
Management fees
Management fees from mutual fund schemes are recognised on an accrual
basis in accordance with the investment management agreement and provision
of SEBI (Mutual Fund) Regulations, 1996.
Other Management fees
Fund management and portfolio management fees (net of service tax/GST)
are recognised on an accrual basis in accordance with the respective terms of
contract with counter parties. Set up fees received by the company for venture
capital fund and alternate investment fund is amortised over the life of the fund.
Advisory fees
respective terms of contract with counter parties.
notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million)
Other income
Interest income is accounted on a time proportion basis taking into account the
amount outstanding and the rate applicable.
Dividend income is recognised when the right to receive dividend is established.
2.7 Transactions in foreign currency
On initial recognition, all foreign currency transactions are recorded at the rates
of exchange prevailing on the date of the transactions. Exchange differences,
if any, arising out of foreign exchange transactions settled during the year are
recognised in the statement of profit and loss.
Monetary assets and liabilities denominated in foreign currencies are translated
at the balance sheet date at the closing exchange rates on that date and the
resultant exchange differences, if any, are recognised in the statement of profit
and loss.
2.8 Employee benefits
Provident fund
The Company’s contribution to the Statutory Provident Fund, a defined
contribution scheme, made at 12% of the basic salary of each employee
is charged to the statement of profit and loss as incurred. Such benefits are
classified as Defined Contribution Schemes as the Company does not carry any
further obligations, apart from the contributions made on a monthly basis.
Gratuity
The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”)
covering eligible employees in accordance with the Payment of Gratuity Act,
1972. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount
based on the respective employee’s salary and the tenure of employment. The
Company’s liability is actuarially determined (using the Projected Unit Credit
method) at the end of each year. Actuarial losses/ gains are recognised in the
Statement of Profit and Loss in the year in which they arise.
Actuarial gains and losses are recognised immediately in the statement of profit
and loss in which they arise.
Superannuation
The Company contributes to an approved superannuation fund which is a
defined contribution plan for all its eligible employees who have opted for the
scheme. The Company’s contribution to the Superannuation fund with the Life
Insurance Corporation of India (LIC) is charged to the statement of profit and
loss as incurred.
Compensated Absences
Accumulated compensated absences, which are expected to be availed or
encashed within 12 months from the end of the year end are treated as short
term employee benefits. The obligation towards the same is measured at the
expected cost of accumulating compensated absences as the additional amount
expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or
encashed beyond 12 months from the end of the year are treated as other
long term employee benefits. The Company’s liability is actuarially determined
(using the Projected Unit Credit method) at the end of each year. Actuarial
losses/ gains are recognised in the Statement of Profit and Loss in the year in
which they arise.
2.9 New Fund Offer (‘NFO’) expenses
Expenses relating to NFO are charged to statement of profit and loss of the
Company in the year in which these expenses are incurred.
2.10 Borrowing cost
All borrowing cost are charged to the Statement of Profit and Loss in which they
are incurred. Borrowing cost consists of interest and other cost that an entity
incurs in connection with the borrowing of the funds.
2.11 Fund expenses
Expenses incurred (inclusive of advertisement and brokerage expenses) on
behalf of schemes of the Fund are charged to the statement of profit and loss of
the Company unless considered recoverable from the schemes of the Fund in
accordance with the provisions of SEBI (Mutual Fund) Regulations, 1996.
2.12 Brokerage and incentives
Brokerage and incentive payments are charged to statement of profit and loss
as and when incurred.
2.13 Long term incentive plan (‘LTIP’)
The Company’s certain eligible employees are entitled to Long term incentive
benefits as per the company’s policy. The provision is assessed on a yearly
basis based on actuarial valuation. The year end provision is measured at the
present value of estimated future cash flows.
Continued
2.14 Operating leases
As a lessee:
Leases where the lessor effectively retains substantially all the risks and benefits
of ownership over the lease term are classified as operating leases. Operating
lease rentals are recognised as an expense in the statement of profit and loss on
straight line basis over the lease term.
2.15 Tax
Income tax expense comprises current tax (i.e. amount of tax for the year
determined in accordance with the income tax law) and deferred tax charge
or credit (reflecting the tax effects of timing differences between accounting
income and taxable income for the year).
Current tax
Current tax expense is recognised on an annual basis under the taxes payable
method, based on the estimated tax liability computed after taking credit for
allowances and exemption in accordance with Income-tax Act, 1961. In case of
matters under appeal due to disallowance or otherwise, full provision is made
when the said liabilities are accepted by the Company.
Current tax assets and current tax liabilities are offset when there is a legally
enforceable right to set off the recognised amounts and there is an intention to
settle the asset and the liability on a net basis.
Deferred tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been enacted
or substantively enacted at the balance sheet date. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the assets can be
realised in future. However, where there is unabsorbed depreciation or carried
forward loss under taxation laws, deferred tax assets are recognised only if
there is a virtual certainty supported by convincing evidence of realisation of
such assets against future taxable profits. Deferred tax assets are reviewed as
at each balance sheet date and written down or written up to reflect the amount
that is reasonable / virtually certain (as the case may be) to be realised.
Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off assets against liabilities representing current tax and
where the deferred tax assets and the deferred tax liabilities relate to taxes on
income levied by the same governing taxation laws.
2.16 Earnings per share
Basic earnings per share is computed by dividing the net profit attributable
to the equity shareholders by weighted average number of equity shares
outstanding during the reporting year.
Earnings considered in ascertaining the Company’s earnings per share is the
net profit for the period after deducting preference dividends if any and any
attributable tax thereto for the period.
The weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity shares that have changed the number of
equity shares outstanding, without a corresponding change in resources.
The number of equity shares used in computing diluted earnings per share
comprises the weighted average number of shares considered for deriving
basic earnings per share and also weighted average number of equity shares
which would have been issued on the conversion of all dilutive potential shares.
In computing diluted earnings per share only potential equity shares that are
dilutive are included.
2.17 Provisions, contingent liabilities and contingent assets
Provisions comprise liabilities of uncertain timing or amount. Provisions are
recognised when the Company recognises that it has a present obligation as
a result of past events and it is probable that an outflow of resources will be
required to settle the obligation in respect of which a reasonable estimate can
be made.
A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of
resources. When there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provision are reviewed at each balance sheet date and adjusted to reflect the
current best estimate. If it is no longer probable that the outflow of resources
would be required to settle the obligation, the provision is reversed.
2.18 Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents include cash in hand,
demand deposits with banks, other short-term highly liquid investments with
original maturities of three months or less.
487
 notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million) Continued

(` in million) (` in million)
March 31, March 31, March 31, March 31,
2018 2017 2018 2017

2.19 Segment Reporting 4. RESERVE AND SURPLUS
The accounting policies adopted for segment reporting are in conformity with Capital redemption reserve 8.7 8.7
the accounting policies adopted for the Company. Revenue and expenses is
Securities premium account 33.5 33.5
identified to segments on the basis of their relationship to the operating activities
of the segment. Revenue and expenses, which relate to the Company as a General reserve 1,023.4 1,023.4
whole and are not allocable to segments on a reasonable basis, are included Contingency reserve2 103.0 103.0
under “Unallocated expenses/income” Surplus in the statement of profit and loss
Balance at the beginning of the year 5,986.6 5,027.4
(` in million)
Add: Profit for the year 6,255.5 4,804.7
March 31, March 31,
Less: Interim Dividend (4,448.3) (3,195.0)
2018 2017
Less: Dividend distribution tax on interim (905.6) (650.5)
3. SHARE CAPITAL
dividend
Authorised share capital Balance at the end of the year 6,888.2 5,986.6
25,000,000 (previous year: 25,000,000) Total 8,056.8 7,155.2
equity shares of ` 10 each 250.0 250.0 2
The contingency reserve is a free reserve, created voluntarily by the Company in
earlier years, by transferring up to 5% of the profits.
Issued, subscribed and paid-up capital
17,652,090 (previous year: 17,652,090)
equity shares of ` 10 each, fully paid up 176.5 176.5 5. Other long term liabilities
Income received in advance 36.8 42.2
a) Reconciliation of number of shares Lease equalisation 98.5 108.5
Employee benefits payable 29.7 15.3
(` in million) Total 165.0 166.0
Equity Shares: As at 31 March 2018 As at 31 March 2017
Number of Number of 6. Long term provision
Amount Amount
Shares Shares
Provision for employee benefits
Balance as at the beginning of
17,652,090 176.5 17,652,090 176.5 - for Long Term Incentive Plan1 319.7 221.3
the year
Add/Less: Movement during the - for compensated absences 15.6 10.3
- - - - Total 335.3 231.6
year
Balance as at the end of the year 17,652,090 176.5 17,652,090 176.5
1
Refer foot note to Note 12
Rights, Preferences and restrictions attached to the equity shares
The Company has a single class of equity shares having a par value of ` 10 per share.
Accordingly, all equity shares rank equally with regard to dividends and share in the 7. Trade Payables
company’s residual assets. The voting rights of an equity shareholder on a poll (not (a) Total outstanding dues of micro enterprises 0.8 -
on show of hands) are in proportion to its share of the paid-up equity capital of the and small enterprises and5
company. Voting rights cannot be exercised in respect of shares on which any call or
Total outstanding dues of creditors
(b) 
other sums presently payable have not been paid.
other than micro enterprises and small
The dividend proposed by the Board of Directors is subject to the approval of the enterprises5
shareholders in the ensuing Annual General Meeting, except in case of interim
- Others 1,582.9 1,355.8
dividend.
Total 1,583.7 1,355.8
On winding up of the company, the holders of equity shares will be entitled to receive
the residual assets of the company, remaining after distribution of preferential
5
Refer note 31.
amounts, if any, in proportion to the number of equity shares held.
8 . Other current liabilities
Shares held by Holding Company:
Income received in advance 25.6 21.4
9,002,573 (previous year: 9,002,573) equity shares of ` 10 each are held by ICICI Bank
Limited, the Holding Company and its nominees. Dividend distribution tax payable 305.5 341.4
Statutory dues (including Provident fund and 463.3 25.1
Shareholders holding more than 5% of the aggregate shares in the company:
Tax deducted at source)
9,002,573 (previous year: 9,002,573) equity shares of ` 10 each are held by ICICI
Bank Limited and its nominees. Percentage of holding- Current year: 51% Previous Employee benefits payable 409.0 352.4
year: 51% Lease equalisation 18.3 6.7
8,649,517 (previous year: 8,649,517) equity shares of ` 10 each are held by Prudential Others 3.8 3.8
Corporation Holdings Limited. Percentage of holding- Current year: 49% Previous Total 1,225.5 750.8
year: 49%
The Board of Directors had declared interim dividends aggregating to ` 252 per
equity share (previous year: ` 181). The total dividend appropriation for the year 9. Short term provisionS
ended 31 March 2018 amounted to ` 5,353.9 (previous year: ` 3,845.4) including
Provision for employee benefits
dividend distribution tax of ` 905.6 (Previous year: ` 650.5).
- for Long Term Incentive Plan1 96.1 97.6
- for Compensated absences 5.6 3.2
- for gratuity 24.6 32.0
Other current provision
- Provision for tax [(Net of Advance tax ` Nil - 4.6
(Previous year ` 931.3)]
Total 126.3 137.4
1
Refer foot note to note 15

488
notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million) Continued
10. Tangible assets (` in million)

2018
Description Leasehold Furniture and Vehicles Office Computers Total
improvements fixtures equipment and Servers
Gross block
As at 1 April, 2017 184.6 48.9 66.6 120.9 350.4 771.4
Additions during the year 58.2 9.3 22.4 15.9 77.3 183.1
Disposal during the year (4.9) (2.9) (16.4) (5.0) (13.2) (42.4)
As at 31 March, 2018 237.9 55.3 72.6 131.8 414.5 912.1
Accumulated depreciation
As at 1 April, 2017 128.4 40.9 31.2 76.4 271.5 548.4
Charge for the year 24.2 6.6 12.8 8.8 51.2 103.6
Disposals during the year (4.9) (2.7) (12.8) (4.3) (12.2) (36.9)
As at 31 March, 2018 147.7 44.8 31.2 80.9 310.5 615.1
Net block
As at 31 March, 2018 90.2 10.5 41.4 50.9 104.0 297.0
2017
Description Leasehold Furniture and Vehicles Office Computers Total
improvements fixtures equipments and Servers
Gross block
As at 1 April, 2016 155.8 45.8 61.0 111.0 302.6 676.2
Additions during the year 35.1 5.5 17.2 15.9 51.3 125.0
Disposals during the year (6.3) (2.4) (11.6) (6.0) (3.5) (29.8)
As at 31 March, 2017 184.6 48.9 66.6 120.9 350.4 771.4
Accumulated depreciation
As at 1 April, 2016 118.1 39.5 28.8 73.2 237.9 497.5
Charge for the year 16.2 3.7 11.9 8.2 36.8 76.8
Disposals during the year (5.9) (2.3) (9.5) (5.0) (3.2) (25.9)
As at 31 March, 2017 128.4 40.9 31.2 76.4 271.5 548.4
Net block
As at 31 March, 2017 56.2 8.0 35.4 44.5 78.9 223.0

(` in million) (` in million)
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
11. Intangible assets 373,628 units (Previous year 373,628 units) 37.5 37.5
Software investment in ICICI Prudential Real Estate AIF – ICICI
Prudential Alternative Real Estate AIF – II of face value
Gross block ` 100 each fully Paid up
As at 1 April, 2017 208.4 183.3 500,000 Equity Shares (Previous Year 500,000 Equity 0.5 0.5
Additions during the year 30.5 25.1 Shares) in MF Utilities India Private Limited
Disposals during the year - - 928,780 units (Previous year Nil units) investment 100.0 -
in ICICI Prudential Strategic Alpha Fund – ICICI
As at 31 March, 2018 238.9 208.4
Prudential LEAP fund series I
Accumulated amortisation
25,000 Units (Previous Year Nil Units) in ICICI 2.5 -
As at 1 April, 2017 178.1 149.7 Prudential Real Estate AIF – ICICI Prudential Office
Charge for the year 35.0 28.4 Yield Optimiser Fund AIF III
Disposals during the year - -
As at 31 March, 2018 213.1 178.1 Quoted (at cost)
Net block Mutual fund units of face value of `10 each:
As at 31 March, 2018 25.8 30.3 Nil Units (Previous year 130,584 Units) of ICICI - 1.5
Prudential Interval Fund Plan I- Direct Monthly Growth
12. Non-current investments 418,851 Units (Previous year 418,851 Units) of ICICI 5.0 5.0
Prudential Interval Fund Series VI Annual Plan D
Other Investments Direct Cumulative
Unquoted (at cost) 416,951 Units (Previous year 416,951 Units) of ICICI 5.0 5.0
23,544,892 Units (Previous Year 38,387,844 Units) 235.5 383.9 Prudential Interval Fund Series VI Annual Plan C
Investments in ICICI Prudential Venture Capital Fund Direct Plan Cumulative
– ICICI Prudential Real Estate Scheme-I Nil Units (Previous year 110,000 Units) of ICICI - 1.3
Investment in schemes of Portfolio Management 31.6 41.0 Prudential Interval Fund Series V Monthly Plan A
Services [Net of provision for other than temporary Direct Plan Growth
diminution aggregating to ` 8.5 (previous year : 4.9) Nil Units (Previous year 334,414 Units) of ICICI - 5.0
3,400,000 units (Previous year 3,400,000 units) 340.0 316.2 Prudential Interval Fund Series I Quarterly Plan I
investment in ICICI Prudential Real Estate AIF – ICICI Direct Plan Growth
Prudential Alternative Real Estate AIF – I of face value Nil Units (Previous year 247,000 Units) of ICICI - 2.8
` 100 each, Paid up value ` 100 each (Previous year Prudential Interval Fund II Quarterly Plan C Direct Plan
paid up value ` 93 each) Growth

489
 notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million) Continued

(` in million) (` in million)
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Nil Units (Previous year 415,686 Units) of ICICI - 5.0 19,250,000 Units (Previous year 19,250,000 Units) 192.5 192.5
Prudential Interval Fund Series II Quarterly Plan B of ICICI Prudential FMP Series 80-1227 Days Plan Q
Direct Plan Growth Direct Plan Cumulative
Nil Units (Previous year 455,377 Units) of ICICI - 5.0 3,000,000 Units (Previous year 3,000,000 Units) of 30.0 30.0
Prudential Interval Fund Series VII Annual Interval C ICICI Prudential FMP Series 80-1125 Days Plan S
Direct Plan Cumulative Direct Plan Cumulative
Nil Units (Previous year 200,404 Units) of ICICI - 3.0 50,000 Units (Previous Year 50,000 Units) of ICICI 4.3 4.3
Prudential Interval Fund Series II Quarterly Plan F Prudential Nifty 100 iwin ETF
Direct Plan Growth 50,000 Units (Previous Year 50,000 Units) of ICICI 4.2 4.2
Nil Units (Previous year 434,511 Units) of ICICI - 5.0 Prudential Nifty iwin ETF
Prudential Interval Fund Series II Quarterly Plan A 10,000 Units (Previous Year 10,000 Units) of ICICI 2.7 2.7
Direct Plan Growth Prudential Sensex iwin Exchange Traded Fund
Nil Units (Previous year 337,617 Units) of ICICI - 5.0 20,000 Units (Previous Year 20,000 Units) of ICICI 5.2 5.2
Prudential Interval Fund Series III Quarterly Direct Prudential Gold iwin Exchange Traded Fund
Plan Growth
40,380 Units (Previous Year 40,380 Units) of ICICI 1.5 1.5
300,000 Units (Previous year 300,000 Units) of ICICI 3.0 3.0 Prudential Fund NV20 iwin ETF
Prudential Fixed Maturity Plan Series 74 -9 Years Plan
U Direct Plan Cumulative 39,541 Units (Previous Year 39,541 Units) of ICICI 2.0 2.0
Prudential Fund MIDCAP Select iwin ETF
Nil Units (Previous year 350,586 Units) of ICICI - 5.0
Prudential Interval Annual Plan -I Direct Plan Growth 139,005 Units (Previous year Nil Units) of ICICI 5.0 -
Prudential Bharat 22 ETF
Nil Units (Previous year 55,523 Units) of ICICI - 1.0
Prudential Interval Annual Plan -II Direct Plan Growth 1,500,000 Units (Previous year Nil Units) of ICICI 15.0 -
Prudential Fixed Maturity Plan Series 81 - 1150 Days
Nil Units (Previous year 177,082 Units) of ICICI - 2.5 Plan K Direct Plan Cumulative
Prudential Interval Annual Plan -III Direct Plan Growth
1,500,000 Units (Previous year Nil Units) of ICICI 15.0 -
Nil Units (Previous year 303,418 Units) of ICICI - 5.0 Prudential Fixed Maturity Plan Series 81 - 1163 Days
Prudential Interval Annual Plan -IV Direct Plan Growth Plan Q Direct Plan Cumulative
Nil Units (Previous year 339,466 Units) of ICICI - 5.0 5,000,000 Units (Previous year Nil Units) of ICICI 50.0 -
Prudential Interval Fund II Quarterly Plan D Direct Prudential Fixed Maturity Plan Series 81 - 1185 Days
Plan Growth Plan G Direct Plan Cumulative
Nil Units (Previous year 60,501 Units) of ICICI - 1.0 6,500,000 Units (Previous year Nil Units) of ICICI 65.0 -
Prudential Interval Fund II Quarterly Direct Plan Prudential Fixed Maturity Plan Series 81 - 1190 Days
Growth Plan F Cumulative
Nil Units (Previous year 101,517 Units) of ICICI - 1.5 1,800,000 Units (Previous year Nil Units) of ICICI 20.2 -
Prudential Interval Fund IV Quarterly Plan B Direct Prudential Mutual Fund Value Fund Series 13
Plan Growth
38,446 Units (Previous year Nil Units) of ICICI 2.8 -
3,500,000 Units (Previous year 3,500,000 Units) of 35.0 35.0 Prudential Mutual Fund Nifty Low Vol 30 iWIN ETF
ICICI Prudential FMP Series 77 - 1473 Days Plan C
Direct Plan Cumulative
25,000,000 Units (Previous year 25,000,000 Units) 250.0 250.0 Unquoted (at cost)
of ICICI Prudential FMP Series 80-1194 Days Plan F Mutual fund units of face value of ` 10 each:
Direct Plan Cumulative
Nil Units (Previous Year 620,420 Units) of ICICI - 12.7
10,000,000 Units (Previous Year 10,000,000 Units) 100.0 100.0 Prudential Balanced Advantage Fund Direct Plan
of ICICI Prudential FMP Series 79-1120 Days Plan J Growth1
Direct Plan Cumulative
500,000 Units (Previous Year 500,000 Units) of ICICI 5.0 5.0
3,700,000 Units (Previous year 3,700,000 Units) of 37.0 37.0 Prudential Equity Income Fund Direct Plan Growth
ICICI Prudential FMP Series 79-1118 Days Plan K Cumulative
Direct Plan Cumulative
500,000 Units (Previous Year 500,000 Units) of ICICI 5.0 5.0
7,000,000 Units (Previous year 7,000,000 Units) of 70.0 70.0 Prudential Constant Maturity Gilt Fund –Direct –
ICICI Prudential FMP Series 79-1404 Days Plan T Growth
Direct Plan Cumulative
389,146 Units (Previous Year 699,641 Units) of ICICI 47.9 75.5
5,250,000 Units (Previous year 5,250,000 Units) of 52.5 52.5 Prudential Value Discovery Fund Direct Plan Growth1
ICICI Prudential FMP Series 79-1104 Days Plan P
13,674 Units (Previous Year 13,674 Units) of ICICI 0.7 0.7
Direct Plan Cumulative
Prudential Advisor Series - Long Term Savings -
23,000,000 Units (Previous year 23,000,000 Units) 230.0 230.0 Direct Plan - Growth
of ICICI Prudential FMP Series 80-1187 Days Plan G
4,018 Units (Previous Year 4,018 Units) of ICICI 0.1 0.1
Direct Plan Cumulative
Prudential Advisor Series -Dynamic Accrual Plan -
5,000,000 Units (Previous year 5,000,000 Units) of 50.0 50.0 Direct Plan - Growth
ICICI Prudential FMP Series 80-1253 Days Plan J
195,168 Units (Previous Year 195,168 Units) of ICICI 5.0 5.0
Direct Plan Cumulative
Prudential Balanced Advantage Fund - Direct Plan -
1,500,000 Units (Previous year 1,500,000 Units) of 15.0 15.0 Growth
ICICI Prudential FMP Series 80-1225 Days Plan T
54,599 Units (Previous Year 54,599 Units) of ICICI 5.0 5.0
Direct Plan Cumulative
Prudential Balanced Fund - Direct Plan – Growth
6,500,000 Units (Previous year 6,500,000 Units) of 65.0 65.0
136,208 Units (Previous Year 136,208 Units) of ICICI 5.0 5.0
ICICI Prudential FMP Series 80-1245 Days Plan L
Prudential Banking and Financial Services Fund -
Direct Plan Cumulative
Direct Plan - Growth
20,000,000 Units (Previous year 20,000,000 Units) 200.0 200.0
641,807 Units (Previous Year 641,807 Units) of ICICI 10.0 10.8
of ICICI Prudential FMP Series 80-1231 Days Plan P
Prudential Banking and PSU Debt Fund - Direct Plan
Direct Plan Cumulative
- Growth

490
notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million) Continued

(` in million) (` in million)
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
9,701 Units (Previous Year 9,701 Units) of ICICI 0.3 0.3 133,865 Units (Previous Year 133,865 Units) of ICICI 1.9 1.9
Prudential Cautious - Direct Plan - Growth Prudential Regular Income Fund - Direct Plan - Growth
49,482 Units (Previous Year 49,482 Units) of ICICI 5.0 5.0 332,065 Units (Previous Year 332,065 Units) of ICICI 5.0 5.0
Prudential Child Care Plan Gift - Direct Plan Prudential Regular Savings Fund - Direct Plan -
73,162 Units (Previous Year 73,162 Units) of ICICI 4.0 4.0 Growth
Prudential Child Care Plan Study - Direct Plan 215,526 Units (Previous Year 215,526 Units) of ICICI 5.0 5.0
227,818 Units (Previous Year 227,818 Units) of ICICI 5.0 5.0 Prudential Select Large Cap fund - Direct Plan –
Prudential Corporate Bond Fund - Direct Plan - Growth
Growth 171,624 Units (Previous Year 171,624 Units) of ICICI 5.0 5.0
500,000 Units (Previous Year 500,000 Units) of ICICI 5.0 5.0 Prudential Short Term - Direct Plan - Growth Option
Prudential Dividend Yield Equity Fund Direct Plan 141,776 Units (Previous Year 141,776 Units) of ICICI 5.0 5.0
Growth Prudential Short Term Gilt Fund - Direct Plan – Growth
26,490 Units (Previous Year 26,490 Units) of ICICI 5.0 5.0 129,137 Units (Previous Year 129,137 Units) of ICICI 5.0 5.0
Prudential Dynamic - Direct Plan - Growth Prudential Technology Fund - Direct Plan - Growth
314,626 Units (Previous Year 314,626 Units) of ICICI 5.0 5.0 20,890 Units (Previous Year 20,890 Units) of ICICI 5.0 5.0
Prudential Dynamic Bond Fund - Direct Plan - Growth Prudential Top 100 Fund - Direct Plan – Growth
512,920 Units (Previous Year 512,920 Units) of ICICI 10.0 10.3 347,289 Units (Previous Year 347,289 Units) of ICICI 5.0 5.0
Prudential Equity Arbitrage Fund - Direct Plan - Prudential Ultra Short Term - Direct Plan - Growth
Growth 271,455 Units (Previous Year 271,455 Units) of ICICI 5.0 5.0
115,212 Units (Previous Year 115,212 Units) of ICICI 5.0 5.0 Prudential US Bluechip Equity Fund - Direct Plan -
Prudential Exports and Other Services Fund - Direct Growth
Plan – Growth 43,746 Units (Previous Year 43,746 Units) of ICICI 5.0 5.0
31,836 Units (Previous Year 31,836 Units) of ICICI 5.0 5.0 Prudential Value Discovery Fund - Direct Plan -
Prudential FMCG Fund - Direct Plan – Growth Growth
171,123 Units (Previous Year 171,123 Units) of ICICI 5.0 5.0 9,004 Units (Previous Year 9,004 Units) of ICICI 0.5 0.5
Prudential Focused Bluechip Equity Fund - Direct Prudential Very Aggressive - Direct Plan – Growth
Plan - Growth Nil Units (Previous Year 1,174,346 Units) of ICICI - 26.5
180,487 Units (Previous Year 180,487 Units) of ICICI 5.0 5.0 Prudential Select Large Cap Fund-Direct Plan Growth1
Prudential Gilt Fund Investment Plan PF Option Nil Units (Previous Year 13,947 Units) of ICICI - 3.3
Growth - Direct Plan Prudential Top 100 Fund - Direct- Growth1
258,902 Units (Previous Year 258,902 Units) of ICICI 5.0 5.0 25,026 Units (Previous Year 25,026 Units) of ICICI 5.0 5.0
Prudential Gilt Fund Treasury Plan PF Option Growth- Prudential Multicap Fund - Direct Plan - Growth
Direct Plan
151,536 Units (Previous Year Nil Units) of ICICI 1.5 -
411,201 Units (Previous Year 411,201 Units) of ICICI 5.0 5.0 Prudential Sensex Index Fund Direct Plan Growth
Prudential Global Stable Equity Fund Direct Plan
Growth 716,276 Units (Previous Year Nil Units) of ICICI Prudential 14.0 -
Balanced Advantage Fund - Direct Plan - Dividend1
111,388 Units (Previous Year 111,388 Units) of ICICI 5.0 5.0
Prudential Income - Direct Plan - Growth 572,106 Units (Previous Year Nil Units) of ICICI 15.3 -
Prudential Dynamic - Direct Plan - Dividend1
254,804 Units (Previous Year 254,804 Units) of ICICI 5.0 5.0
Prudential Income Opportunities Fund - Direct Plan - 90,927 Units (Previous Year Nil Units) of ICICI 2.9 -
Growth Prudential Focused Bluechip Equity Fund - Direct Plan
- Dividend1
234,201 Units (Previous Year 234,201 Units) of ICICI 5.0 5.0
Prudential Indo Asia Equity Fund - Direct Plan - 63,961 Units (Previous Year Nil Units) of ICICI 1.9 -
Growth Prudential Focused Bluechip Equity Fund - Direct Plan
- Growth1
119,422 Units (Previous Year 119,422 Units) of ICICI 5.0 5.0
Prudential Infrastructure Fund - Direct Plan - Growth 27,905 Units (Previous Year Nil Units) of ICICI 7.5 -
Prudential Multicap Fund - Direct Plan - Growth1
295,698 Units (Previous Year 295,698 Units) of ICICI 5.0 5.0
Prudential Long Term - Direct Plan - Growth 508,336 Units (Previous Year Nil Units) of ICICI 16.3 -
Prudential Multicap Fund - Direct Plan - Dividend1
18,601 Units (Previous Year 18,601 Units) of ICICI 5.0 5.0
Prudential Long Term Equity Fund (Tax Saving) - 460,106 Units (Previous Year Nil Units) of ICICI 12.5 -
Direct Plan - Growth Prudential Select Large Cap Fund-Direct Plan
Dividend Reinvestment1
104,117 Units (Previous Year 104,117 Units) of ICICI 5.0 5.0
Prudential Long Term Gilt Fund - Direct Plan - Growth 207,921 Units (Previous Year Nil Units) of ICICI 5.0 -
Prudential Top 100 Fund - Direct Plan - Dividend1
71,987 Units (Previous Year 71,987 Units) of ICICI 5.0 5.0
Prudential Midcap Fund - Direct Plan - Growth 125,996 Units (Previous Year Nil Units) of ICICI Prudential 6.5 -
Value Discovery Fund - Direct Plan - Dividend1
161,727 Units (Previous Year 161,727 Units) of ICICI 5.0 5.0
Prudential MIP - 25 - Direct Plan - Growth Mutual fund units of face value of ` 100 each:
128,207 Units (Previous Year 128,207 Units) of ICICI 5.0 5.0 25,664 Units (Previous Year 25,664 Units) of ICICI 5.0 5.0
Prudential MIP - Direct Plan - Growth Prudential Money Market Fund-Direct plan Growth
12,988 Units (Previous Year 12,988 Units) of ICICI 0.5 0.5 18,847 Units (Previous Year 18,847 Units) of ICICI 5.0 5.0
Prudential Moderate - Direct Plan - Growth Prudential Flexible Income - Direct Plan – Growth
63,226 Units (Previous Year 63,226 Units) of ICICI 5.0 5.0 23,977 Units (Previous Year 23,977 Units) of ICICI 5.0 5.0
Prudential Nifty Index Plan - Direct Plan Growth Prudential Liquid - Direct Plan – Growth
59,035 Units (Previous Year 59,035 Units) of ICICI 1.0 1.0 23,641 Units (Previous Year 23,641 Units) of ICICI 5.0 5.0
Prudential Nifty Next 50 Index Fund - Direct Plan - Prudential Savings Fund - Direct Plan – Growth
Growth Total non-current investments 2,650.8 2,551.7
517,860 Units (Previous Year 517,860 Units) of ICICI 5.0 5.0
Prudential Regular Gold Savings Fund - Direct Plan
- Growth
491
 notes
to the financial statements for the year ended March 31, 2018 (Currency: Indian rupees million) Continued

(` in million) (` in million)
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Aggregate amount of quoted investments 1,532.9 1,414.5 Nil Units (Previous year 37,021 Units) of ICICI - 1.5
Prudential Long Term Gilt Fund Direct Plan
Market Value of quoted investments 1,664.9 1,453.2
–Growth Option1
Aggregate amount of unquoted investments 1,126.8 1,137.3
Nil Units (Previous year 572,128 Units) of ICICI - 12.0
Aggregate provision for diminution in value of 8.5 14.9 Prudential Equity Arbitrage Fund - Direct Plan
investments - Growth Option1
1
In accordance with Long Term Incentive Plan (‘LTIP’) 2014, 2015, 2016 and 2017, 21,187 Units (Previous year 21,187 Units) 4.0 4.0
investments are identified and separated to meet LTIP liabilities in future. As any gain of ICICI Prudential Dynamic - Direct Plan –
or loss on these investments belongs to employees, it is valued at cost. Growth Option1
412,169 Units (Previous year 754,495 Units) of 38.4 61.2
13. Deferred tax ICICI Prudential Value Discovery Fund Direct
The Company has net deferred tax asset of ` 232.6 (Previous year ` 163.5). Plan Growth1
The composition of deferred tax assets (liabilities) is as follows: 472,308 Units (Previous year Nil Units) of ICICI 6.9 -
Prudential Equity Arbitrage Fund - Direct Plan
Deferred tax asset: – Dividend1
-
difference in WDV of tangible assets and 55.2 42.3 935,119 Units (Previous year Nil Units) of ICICI 11.0 -
intangible asset Prudential Equity Income Fund Direct Plan
Quarterly Dividend Reinvestment1
- provision for employee benefit expenses 163.1 115.6
1,010,856 Units (Previous year Nil Units) 22.8 -
- provision for lease equalization 40.8 39.8 of ICICI Prudential Select Large Cap Fund -
- provision for doubtful amounts 6.1 12.8 Growth1
Deferred tax liability: 485,150 Units (Previous year Nil Units) of 11.6 -
ICICI Prudential Top 100 Fund - Direct Plan -
- Unamortised Income/ Expenses (net) (32.6) (47.0) Dividend1
Net deferred tax assets 232.6 163.5 Nil Units (Previous Year 338.1 Units) of ICICI - 0.1
Prudential Savings Fund – Direct Plan Growth
14. Long term loans & advances Nil Units (Previous Year 40,565,741 Units) - 740.0
of ICICI Prudential Dynamic Bond Fund Plan
Unsecured considered good
-Direct Growth
Capital advance 2.5 2.6
Nil Units (Previous Year 9,042,456 Units) of - 279.7
Security deposits 240.1 214.0 ICICI Prudential Gilt Invest PF Plan - Direct
Growth
Advance tax [net of provision for tax ` 8,964.2 310.4 168.5
(Previous Year ` 6,015.6)] Nil Units (Previous Year 48,991,832 Units) - 991.8
of ICICI Prudential Long Term Plan- Direct
Staff loans 0.8 0.7 Growth
Statutory dues recoverable 2.5 2.5 Nil Units (Previous Year 51,405,655 Units) of - 962.0
Prepaid expenses 470.6 402.9 ICICI Prudential Banking & PSU Debt Direct
Growth
Advances recoverable in cash or in kind or for 23.3 192.9
value to be received 250,000 Units (Previous Year 250,000 Units) 2.5 2.5
of ICICI Prudential Constant Maturity Gilt Fund
Total 1,050.2 984.1 –Direct –Growth
Nil Units (Previous Year 16,042,769 Units) of - 859.0
15. Current investments ICICI Prudential Long Term Gilt Fund - Direct
Other Investments Plan - Growth
Quoted (at cost or market value whichever 44,984,414 Units (Previous Year Nil Units) of 702.3 -
is lower) ICICI Prudential Balanced Advantage Fund -
Direct Plan - Monthly Dividend
Mutual fund units of face value of ` 10 each:
48,511,674 Units (Previous Year Nil Units) of 589.2 -
Nil Units (Previous year 250,000 Units) of ICICI - 2.5 ICICI Prudential Banking and PSU Debt Fund -
Prudential Fixed Maturity Plan Series 72 - 785 Direct Plan - Quarterly Dividend
Days Plan O Direct Plan Cumulative
31,675,427 Units (Previous Year Nil Units) of 330.5 -
65,333 Units (Previous Year 3,184 Units) of 6.8 0.3 ICICI Prudential Dynamic Bond Fund - Direct
ICICI Prudential Fund Nifty iwin ETF Plan - Annual Dividend Reinvestment
30,000,000 Units (Previous Year Nil Units) of 300.0 - 85,754,657 Units (Previous Year Nil Units) of 979.8 -
ICICI Prudential Fixed Maturity Plan - Series 82 ICICI Prudential Long Term Plan - Quarterly
- 103 Days Plan O Direct Plan Cumulative Dividend Payout
1,553,217 Units (Previous Year Nil Units) of 56.7 - Mutual fund units of face value of ` 100/- each
ICICI Prudential Bharat 22 ETF
3,233,899 Units (Previous Year Nil Units) of 830.0 -
50,000 Units (Previous Year Nil Units) of ICICI 3.6 - ICICI Prudential Liquid - Direct Plan – Growth
Prudential Midcap Select iWIN ETF
Total current investments 3,900.0 3,935.6
30,000 Units (Previous Year Nil Units) of ICICI 2.5 -
Prudential Nifty Low Vol 30 iWIN ETF Aggregate amount of quoted investments 369.6 2.8
Unquoted (at cost or market value whichever Market Value of quoted investments