1. We have audited the accompanying standalone financial statements of Life Insurance Corporation of India ("the Corporation"),
which comprise of the standalone balance sheet as at March 31, 2025, the standalone revenue account (also called the
“Policyholders’ Account” or the “Technical Account”), standalone profit and loss account (also called the “Shareholders’
Account” or the “Non - Technical Account”) and the standalone receipts and payments account (also called as the “Cash
Flow Statement”) for the year ended March 31 2025, and a summary of significant accounting policies and other explanatory
information, in which are included 8 Zonal Offices, 113 Divisional Offices and 77 units of Pension & Group Schemes audited
by the zonal/divisional auditors appointed by the Corporation and the returns of 3 foreign branches (Fiji, Mauritius, United
Kingdom) audited by their respective local auditors and for 1 branch (GIFT City, India) audited by one of the Corporation
auditors.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements are prepared, in accordance with the Life Insurance Corporation Act 1956 ( the “LIC Act”), as amended,
the Insurance Act, 1938 (the “Insurance Act”), as amended, Insurance Regulatory and Development Act, 1999 (the “IRDA
Act”), (Actuarial Finance and Investment Functions of Insurers) Regulation, 2024, including orders/ directions/ circulars issued
by the Insurance Regulatory and Development Authority of India (“IRDAI”), including the accounting standards specified under
section 133 of the Companies Act, 2013, to the extent applicable and in the manner so required and give a true and fair view
in conformity with accounting principles generally accepted in India, as applicable to insurance companies:
i. in the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31,2025;
ii. in the case of the Revenue Account, of the net surplus for the year ended on that date;
iii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
iv. in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA’s) issued
by the Institute of Chartered Accountants of India (“ICAI”). Our responsibilities under those standards are further described in
the auditors’ responsibilities for the audit of Financial Statements section of our report. We are independent of the Corporation
in accordance with the code of ethics issued by the ICAI together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the LIC Act, as amended, the Insurance Act, as amended; the IRDA Act;
Regulations and orders / circulars issued by IRDAI and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the standalone financial statements.
Emphasis of Matters
4. We invite attention to the following notes to the standalone financial statements under Schedule 15A(C):
a) Note No. 20, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount
of ' 9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20
quarters commencing from Q3 of the FY 2023-24 amounting to ' 464.02 crore per quarter. Accordingly, an aggregate
amount of ' 1,856.08 crore has been charged to Revenue Account over four quarters during the year ended March
31, 2025.The balance amount of ' 6,496.25 crore shall be amortised over the subsequent quarters upto Q2 of the
FY 2028-29.
b) Note No. 21, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount of
' 7,230.09 crore in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished
from Shareholders' account in equal annual instalments not exceeding three, commencing from Q1 of the FY 2024¬
2025. Accordingly, an aggregate amount of ' 2,410.03 crore has been replenished from the Shareholders’ account over
four quarters during the year ended March 31,2025. The balance amount of ' 4,820.05 crore shall be replenished from
Shareholders’ account over the subsequent quarters upto Q4 of the FY 2026-27.
c) Note No. 22, wherein it is mentioned that pursuant to regulatory approval received by the Corporation, an amount of
' 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders
account over a period not exceeding three years commencing from the FY 2024-2025. Accordingly, an aggregate
amount of ' 1,825.68 crore has been charged to Shareholders’ account over four quarters during the year ended, March
31, 2025. The balance amount of ' 3,651.42 crores shall be charged to Shareholders’ account over the subsequent
quarters upto Q4 of the FY 2026-27.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matter below to be the key audit matter to be communicated in our report.
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Key audit matters
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How our audit addressed the key audit matters
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Classification and Valuation of Investments (31.03.2025:
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We have carried out the following key audit procedures:
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' 53,04,249.98 crore)
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Understood the Corporation’s process and procedures
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(Refer Schedule 8, 8A, 8B, 9 and 11 of the financial statements.
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and tested controls to ensure proper classification and
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Refer schedule 15A(A)6 to the financial statements for
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valuation/ impairment of investments.
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accounting policy.)
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Tested recording of investments on sample basis and
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The Corporation’s investment portfolio is bifurcated into linked
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verified classification of investments and compliance with
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and non-linked. The investment portfolio forms significant
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Investment Regulations and policies approved by Board
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portion of the total assets of the Corporation.
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of Directors of the Corporation.
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As prescribed by Insurance Regulatory and Development
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Assessed valuation of securities to examine whether the
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Authority of India (the “IRDAI”), all investments should be in
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same is in accordance with the Investment Regulations
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accordance with the Insurance Regulatory and Development
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and Corporation’s accounting policies.
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Authority of India (Actuarial, Finance and Investment Functions
of Insurers) Regulations, 2024 (the “Investment Regulations”)
and policies approved by Board of Directors of the Corporation.
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Tested impairment/provision of securities (including
reversal), which have been observed and are in
accordance with the Investment Regulations and
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Also, all investments should be valued as prescribed in
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Corporation’s impairment policies.
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the Investment Regulations which prescribe the valuation
methodology to be adopted for each class of investments.
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In respect of unlisted and other than actively traded
investments, we evaluated the Corporation’s valuation
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The unlisted or other than actively traded investments are
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methodology and assumptions and corroborated these
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measured at historical cost less provision for diminution/
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with Investment Regulations and Corporation’s internal
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impairment, which involves management judgement and
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policies including those related to impairment.
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estimate.
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For any changes in ratings of the investee company,
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Further, due to the reassessment of the investee company’s
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we examined the Corporation’s assessment with the
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rating, there could be a need for reclassification of investment
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Investment Regulations and Corporation’s internal
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and consequent impact on its valuation / impairment keeping in
view the Investment Regulations and/ or Corporation’s internal
policies.
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policies for reclassification and valuation.
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Key audit matters
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How our audit addressed the key audit matters
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Hence, the valuation of investments was considered to be one
of the areas which required our significant attention and was
one of the key audit matters due to the materiality of total value
of investments to the financial statements.
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• We have perused the available concurrent audit reports
on investments.
Based on the work carried out, we did not come across any
significant matter which indicates that the investments were not
properly classified or valued.
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Appropriateness of the Timing of Revenue Recognition
Refer Revenue Account of the standalone financial statements.
During the year, the Corporation has recognised net premium
income of ' 4,88,148.17crore.
We have focused on this area because of the significant
concentration of revenue during the last quarter of financial year
(including cut-off at the Balance sheet date). Due to the nature
of the industry, revenue is skewed towards the balance sheet
date. Hence, there is possibility that policy sales of the next
financial year are accounted in the current period.
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Our procedures included the following:
• Understood and evaluated the design and operating
effectiveness of process and controls relating to
recognition of revenue.
• Testing of key controls for ensuring that the revenue has
been accrued in the correct accounting period.
• Tested on a sample basis the policies at the year end to
confirm if related procedural compliances with regard to
acceptability of the terms of policy were completed before
the year end to ensure appropriate accounting of revenue.
• Tested on a sample basis unallocated premium / proposal
deposit/ premium deposit to ensure that there were no
policies where risk commenced prior to balance sheet but
revenue was not recognised.
Based on the work carried out, we did not come across any
significant matter which indicates that the revenue recognition is
not accounted in the correct period.
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Contingencies relating to certain matters pertaining to
Direct & Indirect Tax
The Corporation has material uncertain tax positions including
matters under dispute which involves significant judgment
to determine the possible outcome of these disputes. The
Corporation has disputes pending at various levels of tax
authorities over the past several years.
The management with the help of its expert, as needed, have
made judgments relating to the likelihood of an obligation arising
and whether there is a need to recognise a provision or disclose
a contingent liability.
We have considered Litigations and claims as Key Audit Matter
because the estimates on which these amounts are based
involve a significant degree of management judgment, including
accounting estimates that involves high estimation uncertainty.
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Our procedures included the following:
• Understood Management’s internal instructions, process
and control for determining and estimating the tax
litigations, other litigations and claims and its appropriate
accounting and/or disclosure;
• Discussed pending matters with the Corporation’s legal
counsel and in-house tax experts;
• Reviewed the management’s underlying assumptions in
estimating the tax provision, the possible outcome of the
disputes, legal precedence and other rulings in evaluating
management’s position on these uncertain tax positions.
• Relied upon the management judgements, industry
level deliberations and estimates for possible outflow
and opinion of internal experts/ External Tax Advisors/
lawyers of the Corporation in relation to such disputed tax
positions
Based on the work performed, in view of the contingencies
relating to certain matters pertaining to Direct & Indirect Tax,
we determined the extent of provisioning and disclosure of
contingent liabilities as at March 31,2025 to be reasonable.
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Information Other than the Standalone Financial Statements and Auditors’ Report thereon
6. The Corporation’s Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements and our auditors’ report thereon. The annual report
is expected to be made available to us after the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we will communicate the matter
to those charged with governance.
Responsibilities of Management and Those Charged with Governance for Standalone Financial Statements
7. The Corporation's Board of Directors is responsible for the preparation and presentation of these Standalone Financial
Statements in terms of the requirements of the LIC Act, as amended, so that they give a true and fair view of the balance sheet,
the revenue account, the profit and loss account and the receipts and payments account of the Corporation, in accordance with
accounting principles generally accepted in India including the provisions of the LIC Act, as amended , the Insurance Act, as
amended read with the IRDA Act, the Regulations, order/ directions issued by the IRDAI in this regard and in accordance with
the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the
Companies Act, 2013 to the extent applicable and in the manner so required.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the LIC
Act, as amended, the Insurance Act, as amended; IRDA Act; Regulations and orders / circulars issued by the IRDA for
safeguarding of the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Corporation’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do
so.
The Corporation's Board of Directors are also responsible for overseeing the Corporation’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Standalone Financial Statements.
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
i. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal controls.
ii. Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
iv. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors’ report to the related disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to Continue
as a going concern.
v. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
vi. Obtain sufficient appropriate audit evidence regarding the financial information of the departments/ units of Central office
to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and
performance of the audit of the financial statements of departments/ units of Central office included in the standalone
financial statements of which we are the independent auditors. For the zones/ divisions/ branches/ units included in the
standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for
the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit
opinion.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
13. The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation’s Appointed Actuary (the
"Appointed Actuary"). The actuarial valuation of these liabilities for life policies in force and for policies in respect of which
premium has been discontinued but liability exists as at March 31,2025 has been duly certified by the Appointed Actuary and
in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance
Regulatory and Development Authority of India (“IRDAI"/ "Authority") and the Institute of Actuaries of India in concurrence with
the Authority. We have relied upon the Appointed Actuary's certificate in this regard for forming our opinion on the valuation
of liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists, as
contained in the standalone financial statements/ information of the Corporation.
14. The audited financial statements/ information of the 4 foreign branches (United Kingdom, Mauritius, Fiji and GIFT City, India)
included in the Standalone Financial Statements reflect total assets of ' 5,090.08 crores as at March 31, 2025 total revenue of
' 653.21 crores and net profit of ' 58.69 crores for the year ended March 31, 2025. Our opinion on the standalone financial
statements, in so far as it relates to the amounts and disclosures included in respect of these 3 foreign branches is based solely
on report of such other auditors and for 1 branch audited by one of the corporation auditors.
15. The financial statements / information of 8 Zonal Offices, 113 Divisional Offices (DO) (including branches there under) and
77 units of Pension & Group Schemes (P&GS) included in the Standalone Financial Statements of the Corporation, have been
audited by the zonal/ divisional auditors, whose reports have been furnished to us, and our opinion in so far as it relates to
the amounts and disclosures included in respect of zones/ divisions / branches, is based solely on the report of such zonal/
divisional auditors.
The information of total assets and total revenue in respect of the branches are not separately compiled as the divisions receive
only trial balances of each branch, which are consolidated at division level and thereafter at zonal level.
16. The Standalone Financial Statements includes figures for the year ended March 31,2024, audited by the joint auditors of the
Corporation, one of whom was a predecessor audit firm, where they had expressed an unmodified opinion on such standalone
financial statements vide their report dated May 27, 2024.
Our opinion is not modified in respect of the above matters.
Report on other legal and regulatory requirements.
17. As required by the Regulations, we have issued a separate certificate dated May 27, 2025 certifying the matters specified in
paragraphs 3 and 4 of Part III to the Regulations.
18. The Actuarial Valuation of liabilities for life policies in force and policies in respect of which premium has been discontinued but
liability exists as at March 31, 2025 is the responsibility of the Corporation’s appointed actuary (‘the Appointed Actuary’). The
Appointed Actuary has duly certified the actuarial valuation of liabilities and the fund for future appropriation for life policies in
force and policies in respect of which premium has been discontinued but liability exists as at March 31,2025 and in his opinion
the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory
and Development Authority of India and the Institute of Actuaries of India in concurrence with the Insurance Regulatory and
Development Authority of India. We have relied upon the Appointed Actuary’s Certificate in this regard for forming our opinion
on the valuation of liabilities and the fund for future appropriation for life policies in force and for polices in respect of which
premium has been discontinued but liability exists in the financial statements of the Corporation.
19. Further, to our comments in the Certificate referred to in paragraph 17 above, as required under the Part III of Regulation 3 of
IRDA Regulations and also as required under sub section (3) of Section 25B to the LIC Act (as amended) we report that;
i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and have found them to be satisfactory.
ii. In our opinion and to the best of our information and according to the explanations given to us, proper books of account
as required by law have been maintained by the Corporation so far as it appears from our examination of those books;
iii. In our opinion proper returns of zones/ divisional offices and branches have been received and found them adequate for
the purpose of audit;
iv. The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by
this report are in agreement with the books of account and returns;
v. In our opinion and to the best of our information and according to the explanations given to us, the Investments have
been valued in accordance with the provisions of the Insurance Act, Regulations and orders / directions issued by IRDA
in this behalf;
vi. In our opinion and to the best of our information and according to the explanations given to us, the accounting policies
adopted by the Corporation are appropriate and are in compliance with the applicable accounting standards specified
under section 133 of the Companies Act, 2013, to the extent not inconsistent with the accounting principles prescribed
in the IRDA Regulations and orders / directions / circulars issued by IRDA in this regard.
vii. No directors are disqualified as per clause (i) of section 4A of the LIC Act (as amended).
viii. There are no qualification or adverse remarks relating to maintenance of accounts and matters connected therewith;
ix. With respect to the adequacy of the internal financial controls over financial reporting of the Corporation and the operating
effectiveness of such controls, refer to our separate report in “Annexure A”.
x. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given
to us:
a) The Corporation has disclosed the impact of pending litigations on its financial position in its financial statements.
b) The Corporation has made provision as at March 31, 2025, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
c) There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the
Corporation for the year ended March 31,2025.
d) i. The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Corporation to or in any other person(s) or
entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Corporation ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries to the financial statements);
ii. The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the notes to the accounts, no funds have been received by the Corporation from any person(s) or
entity(ies),including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing
or otherwise, that the Corporation shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
iii. Based on such audit procedures that we considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (d)
(i) and (ii) above contain any material misstatement.
e) The final dividend paid by the Corporation during the year in respect of the same declared for the previous year
is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend. As
stated in Schedule 15A(C) Note No. 30 to the Standalone financial statements, the Board of Directors of the
Corporation have proposed final dividend for the year which is subject to the approval of the members at the
ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act
as applicable.
f) Based on our examination which included test checks, the Corporation has used accounting softwares for
maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same have
operated throughout the year for all relevant transactions recorded in the respective software except that:
i) All eFeap servers including DB servers are under Privilege Access Management(PAM). In PAM system logs
of all commands executed are captured and recorded. However, audit transaction log in Database is not
enabled due to performance and space issues, but transaction level logs of eFeap can be derived from the
relevant module tables (history tables). Also database transaction log is available as mySQLbinlog.
ii) In case of ePGS, audit transaction log in Database is not enabled due to performance and space constraints.
However, data required for audit is maintained in the history table of the respective module. In addition to this
the application log, server log, LB logs are also captured to augment the audit data. Tansaction level logs of
ePGS can be derived from the relevant module tables.
Further, during the course of our audit, we did not come across any instances of audit trail feature being
tampered with and the audit trail has been preserved by the Corporation as per the statutory requirements
for record retention.
20. The Corporation has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the
provisions of Section 197 of the Act and Section 34A of the Insurance Act.
V. Sankar Aiyar & Co. Chokshi & Chokshi LLP
Chartered Accountants Chartered Accountants
FRN: 109208W FRN: 101872W/W100045
CA L V Saptharishi CA Dharmista Shah
Partner Partner
Membership No.: 127055 Membership No.: 108845
UDIN: 25127055BMOCPC9743 UDIN: 25108845BMFXSG4800
Place: Mumbai
Date: May 27th, 2025
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