Significant accounting policies and notes forming part of the standalone financial statements for the year ended March 31, 20251.    CORPORATE INFORMATION

ICICI Prudential Life Insurance Company Limited (‘the Company'), promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited, incorporated on July 20, 2000 as a Company under the Companies Act, 1956. The Company is licensed by the Insurance Regulatory and Development Authority of India (‘IRDAI') for carrying on life insurance business in India. The license is in force as at March 31, 2025. The equity shares of the Company are listed on the National Stock Exchange of India (NSE) and the BSE Limited (BSE).

The Company carries on business of providing life insurance, annuity, pensions and health insurance products to individuals and groups. Riders providing additional benefits are offered under some of these products. The business is conducted in participating, non-participating and unit linked lines of business. These products are distributed through individual agents, corporate agents, banks, brokers, the Company's proprietary sales force and the Company's website.

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2.1. Basis of preparation

The accompanying standalone 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 (Indian GAAP). The Company has prepared the standalone financial statements in compliance with the accounting standards notified under section 133 of the Companies Act 2013 (‘the Act'), and amendments and rules made thereto, to the extent applicable and in accordance with the provisions of the Insurance Act, 1938, as amended from time to time, including amendment brought by Insurance laws (Amendment) Act, 2015, Insurance Regulatory and Development Authority Act, 1999, The Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (‘the Regulation'), Master Circular on Actuarial, Finance and Investment Functions of Insurers dated May 17, 2024 (‘the Master Circular') and various orders, directions and circulars issued by the IRDAI from time to time and the practices prevailing within the insurance industry in India. Accounting policies applied have been consistent with those followed in the previous year.

The management evaluates all recently issued or revised accounting pronouncements on an ongoing basis.

2.2.    Use of estimates

The Company's management makes estimates and assumptions that affect the reported amounts of income and expenses for the year, reported balances of assets and liabilities, and disclosures relating to contingent liabilities as on the date of the standalone financial statements. The estimates and assumptions used in the accompanying standalone financial statements are based upon management's evaluation of the relevant facts and circumstances as on the date of the standalone financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively

2.3.    Revenue recognition

2.3.1.    Premium income

Premium for non-linked policies is recognised as income (net of goods and services tax) when due from policyholders. For unit linked business, premium is recognised as income when the associated units are created. 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 predetermined 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 are considered as single premium.

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. Premium ceded on reinsurance is net of profit commission on reinsurance ceded.

2.3.3.    Reinsurance premium accepted

Reinsurance premium accepted is accounted in accordance with the terms and conditions of the relevant treaties/arrangements with the insurers.

2.3.4.    Income from investments Interest income on investment

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

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'.

Securities Lending and Borrowing (SLB) fees

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

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 the Regulation. Costs related to operating and maintenance of investment property are recognised as expense in the Standalone Revenue Account or Standalone Profit and Loss Account, when incurred.

Profit or loss on sale/redemption of debt securities

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, exchange traded fund (ETF) and mutual fund

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 also includes the accumulated changes in the fair value previously recognised in Standalone Balance Sheet as “Fair Value Change Account”.

Profit or loss on sale/redemption of venture fund units

Profit or loss on sale/redemption of venture fund units is the difference between the sale consideration net of expenses and the weighted average book cost as on the date of sale/redemption.

2.3.5.    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.

2.3.6.    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.

The Company recognises the net obligation of the Scheme in Standalone Balance Sheet as an asset or liability, respectively in accordance with Accounting Standard (AS) 15 (revised 2005), ‘Employee benefits'. The discount rate used for actuarial valuation is based on Government securities yield. Actuarial gains or losses arising from change in actuarial assumptions or experience adjustments (the effects of difference between the previous actuarial assumptions and what has actually occurred) are recognised in the Standalone Revenue Account and Standalone Profit and Loss Account for the period in which they emerge. Estimated rate of return on plan assets is based on the expected average longterm 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 by an independent actuary 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. The contribution paid or payable is charged to the Standalone Revenue Account and the Standalone Profit and Loss Account during the period in which the employee renders the related service.

2.5.3.    Other long term employee benefits

Other long term employee benefits include 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 is determined actuarially, by an independent actuary using projected unit credit method and are recognised as a liability at the discounted present value of the obligation as at the Balance Sheet date. The Company assumes net liability for the above in accordance with AS-15 (Revised). Actuarial gains or losses arising from change in actuarial assumptions or experience adjustments (the effects of difference between the previous actuarial assumptions and what has actually occurred) are recognised in the Standalone Revenue Account and Standalone Profit and Loss Account in the period in which they emerge.

2.5.4.    Employee share based payments

The Company has established the Employee Stock Option Scheme (‘the ESOP Scheme') and the Employee Stock Unit Scheme ('the ESU Scheme') for eligible employees, including whole-time directors.

Under the ESOP Scheme, 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.

Under the ESU Scheme, eligible employees are granted options to subscribe to equity shares of the Company at face value, 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 in accordance with the Guidance Note on Accounting for Share based Payments, issued by the Institute of Chartered Accountants of India (ICAI). Intrinsic value is measured as the excess, if any, of the fair market price of the underlying shares 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 leases

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 in the Revenue/ Standalone Profit and Loss Account.

2.7.    Borrowing costs

Borrowing costs are charged to the Standalone Profit and Loss Account in the period in which these are incurred.

2.8.    Provision for doubtful debts

The Company regularly evaluates the probability of recovery and provides for doubtful deposits, advances and other receivables in accordance with the Company's policy which is in line with the IRDAI regulations.

2.9.    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, maturity and annuity 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. Amount payable on lapsed/discontinued policies are accounted for on expiry of lock-in-period of these policies. Surrenders, withdrawals and lapsation are disclosed at net of charges recoverable. Claim settlement cost, legal & other fees form part of claim cost wherever applicable.

Reinsurance claims are accounted for in the period in which the claim is intimated and are netted off against benefits paid.

Repudiated claims and other claims disputed before the judicial authorities are provided for on prudent basis as considered appropriate by the management.

2.10.    Policy liability valuation

The actuarial liabilities, for all inforce policies and policies where premiums are discontinued but a liability exists as at the valuation date, are calculated in accordance with the accepted actuarial practice, requirements of Insurance Act, 1938, as amended from time to time, regulations notified by the Insurance Regulatory and Development Authority of India, relevant Guidance Notes and Actuarial Practice Standards of the Institute of Actuaries of India. The prescribed method of valuation is the Gross Premium Valuation (GPV). The reserve held represents the net present value of benefits and expenses less premiums. The liability has been computed such that together with future premium payments and investment income, the insurer is expected to meet all future claims (including bonus entitlements to policyholders) and expenses, provided the experience turns out to be in line with the current set of assumptions. The following is the broad method of the valuation:

•    The reserves are calculated on a per policy basis.

•    Any negative reserves are zeroised, so that a policy is not treated as an asset.

•    The minimum value of reserves is the higher of the guaranteed surrender value, non-guaranteed surrender value and zero.

•    For Linked business, unit liabilities are fully matched and a non-unit reserve is also held which includes provisions for any costs of guarantees provided under the products.

•    GPV under non-linked participating policies have a reference to the asset share of policies at valuation date.

The liabilities for group one-year renewable policies are calculated on an unexpired risk premium basis. For non-linked group savings products, account value is held as liabilities.

Valuation parameters are set prudently and include a margin for adverse deviation (MAD) as required under APS7 issued by Institute of Actuaries of India.

2.11.    Funds for Future Appropriations (FFA)

The Funds for Future Appropriations (FFA) represents the surplus, which is not allocated to policyholders or shareholders as at the Balance Sheet date.

Further, as per the Master Circular, discontinuance charges deducted from policies discontinued during the lock-in period shall be presented as a separate line item under the head FFA for Linked in the Standalone Balance Sheet until the exit of the policy from books due to expiry of revival period or due to death of the life assured or expiry of the lock-in period, as applicable.

2.12. Investments

Investments are made and accounted for in accordance with the Insurance Act, 1938, the Regulation, the 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.

The Broken period interest paid/received is debited/ credited to income accrued on investments and deposits.

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.

2.12.1.    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.

2.12.2.    Valuation - Other than Unit Linked Funds Debt securities (including Government securities and redeemable preference shares): 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:

Money market instruments like commercial paper, certificate of deposits and treasury bills are valued at historical cost, subject to accretion of discount over the remaining period to maturity based on effective interest rate method.

Equity shares, equity ETFs and Mutual funds:

Listed equity shares and equity exchange traded funds (ETF) 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 BSE Limited (‘BSE') is used). Unlisted equity shares are stated at acquisition cost less impairment, if any. Equity shares lent under the Securities Lending and Borrowing scheme (SLB) continue to be recognised in the Standalone Balance Sheet as the Company retains all the associated risks and rewards of these securities.

Non-traded and thinly traded equity shares are valued at last available price on NSE/BSE or the value derived using valuation principle of net worth per share, whichever is lower. Equity shares are classified as non-traded if the same is not quoted on NSE/BSE for preceding 30 days from the valuation date.

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 Standalone Balance Sheet.

Real estate - investment property:

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 every three years. The change in carrying amount of investment property is taken to “Revaluation reserve” in the Standalone Balance Sheet.

Venture funds:

Investments in venture fund units are valued at historical cost.

Reverse repo and tri-party repo:

Investments in reverse repo and tri-party repo are valued at cost plus interest accrued.

Fixed deposits:

Fixed deposits with banks are valued at cost.

Impairment of Investments/Reversal of impairment:

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 Standalone 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.

2.12.3. Valuation - Unit Linked Funds Debt securities (including Government securities): 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 CRISIL on daily basis) to arrive at the yield for pricing the security.

Debt securities with a residual maturity up to 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. (based on the matrix released by the CRISIL).

Securities with call option are valued at the lower of the value as obtained by valuing the security up to 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 up to the final maturity date (based on the matrix released by the CRISIL).

Securities with put option are valued at the higher of the value as obtained by valuing the security up to 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 up to the final maturity date (based on the matrix released by CRISIL).

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. Investments in reverse repo and triparty repo are valued at cost plus interest accrued.

Money market instruments:

Money market instruments like commercial paper, certificate of deposits and treasury bills are valued at historical cost, subject to accretion of discount over the period of maturity/holding based on effective interest rate method.

Equity shares, redeemable preference shares, equity ETFs and Mutual Funds:

Listed equity shares, redeemable preference shares and equity ETF are valued at market value, being the last quoted closing price on NSE (in case of securities not listed on NSE, the last quoted closing price on BSE is used). Equity shares lent under the Securities Lending and Borrowing scheme (SLB) continue to be recognised in the Standalone Balance Sheet as the Company retains all the associated risks and rewards of these securities.

Non-traded and thinly traded equity shares are valued at last available price on NSE/BSE or the value derived using valuation principle of net worth per share, whichever is lower. Equity shares are classified as non-traded if the same is not quoted on NSE/BSE for preceding 30 days from the valuation date.

Mutual fund units are valued based on previous day's Net Asset Value.

Venture funds:

Venture fund units are valued at the latest audited net asset value of the respective fund.

Fixed deposits:

Fixed deposits with banks are valued at cost.

Unrealised gains and losses are recognised in the Standalone Revenue Account as prescribed by the Regulation.

2.12.4.    Transfer of investments

Transfer of investments from Shareholders' account to the Policyholders' account to meet the deficit in the Policyholders' account is made at the cost price or market price, whichever is lower. In case of debt securities including money market instruments, all transfers are made at the lower of the market price and the net amortized cost.

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 is used.

No transfer of investments is carried out between non-linked policyholders' funds.

2.12.5.    Provision for Non-Performing Assets (NPA)

An asset is classified as an NPA if the interest and/ or instalment of principal remain overdue for more than

90 days at Balance Sheet date. Provision is made in the Standalone Revenue Account and Standalone Profit and Loss Account based on the guidelines prescribed by IRDAI.

2.13. Interest rate derivatives

Interest rate derivative contracts are used for hedging of highly probable forecasted transactions on insurance contracts and investment cash flows in life, pension and annuity business. The Company follows hedge accounting in accordance with the ‘Guidance Note on Accounting for Derivative Contracts' issued by the Institute of Chartered Accountants of India (ICAI) and IRDAI Investment Master Circular as amended from time to time.

At the inception of the hedge, the Company documents the relationship between the hedging instrument and the hedged item, the risk management objective and strategy for undertaking the hedge, nature of risk being hedged, identification of the instrument and the hedged item and the methods used to assess the hedge effectiveness. Hedge effectiveness is the extent to which changes in the fair value or the cash flows of the hedging instrument offset changes in the fair value or the cash flows of the hedged item. Hedge effectiveness is ascertained at the time of inception of the hedge and on each reporting date.

The Forward Rate Agreement (FRA) contract is valued at the difference between the market value of underlying bond at the spot reference yield taken from the SEBI approved rating agency and present value of the contracted forward price of underlying bond including present value of intermediate coupon inflows from valuation date till FRA contract settlement date, discounted by the INR-Overnight Index Swap (OIS) rate curve.

The Company follows cash flow hedge accounting for interest rate derivatives. The portion of the fair value gain/loss on the interest rate derivative that is determined to be an effective hedge is recognised directly in ‘Credit/(Debit) Fair Value Change Account' in the Standalone Balance Sheet under policyholders' funds and the portion that gets determined as ineffective hedge or ineffective portion of effective hedge, based on the hedge effectiveness assessment is recognized in the Standalone Revenue Account under head “Transfer/Gain on revaluation/Change in fair value”.

The accumulated gains or losses that were recognised directly in the ‘Credit/(Debit) Fair Value Change Account' in the Standalone Balance Sheet are reclassified into the Standalone Revenue Account, in the same period or periods during which income on the investments acquired from underlying forecasted cash flow is recognized in the

Standalone Revenue Account. In the event that all or any portion of gain or loss, recognised directly in the ‘Credit/ (Debit) Fair Value Change Account' in the Standalone Balance Sheet is not expected to be recovered in future periods, the amount that is not expected to be recovered is reclassified to the Standalone Revenue Account.

2.14.    Loans

Loans are stated at historical cost less repayments, subject to provision for impairment as per IRDA Regulation and Master circular, if any. Loans are classified as short term in case the maturity is less than twelve months. Loans other than short term are classified as long term.

2.15.    Fixed assets and Impairment

2.15.1. 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, other taxes (other than those subsequently recoverable from the tax authorities), any cost directly attributable to bring the asset to its working condition for its intended use and other incidental expenses incurred up to 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 its previously assessed standard of performance.

The useful life of various category of assets is as below:

Schedule II of the Companies Act 2013 specifies the useful life of eight years for motor vehicles. As per Company policy, the motor vehicle is transferred to the employee on completion of five years or at written down value (WDV) in case of separation of employee before five years. Accordingly, the Company depreciates motor vehicles over five years. Assets costing up to ' 5,000 are considered to be immaterial in value and hence fully depreciated in the month of acquisition.

Depreciation is provided using the straight-line method (‘SLM') prorated from the date of being ready to use, up to the date of sale, based on estimated useful life for each class of asset.

The useful life of tangible assets are periodically reviewed.

2.15.2.    Intangibles

Intangible assets comprising software are stated at cost less accumulated 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 the original software. Software expenses are amortised using SLM over a period of four years from the date of being ready to use.

The useful life of intangible assets are periodically reviewed.

2.15.3.    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.

2.15.4.    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.

2.16. Taxation 2.16.1. Direct taxes

Provision for income tax is made in accordance with the provisions of Section 44 of the Income Tax Act, 1961 read with Rules contained in the First Schedule and other relevant provisions of the Income Tax Act, 1961 as applicable to a company carrying on life insurance business. 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 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 standalone financial statements. Accordingly, tax charge/credit on surplus/deficit arising from the participating line of business is disclosed separately in the Standalone Revenue Account.

2.16.2. Indirect taxes

Goods and Services tax liability on services is set-off against the respective input tax credits available from tax paid on input services for each state. Unutilised credits, if any, are carried forward under “Advances and other assets” for future set-off, where there is reasonable certainty of utilisation.

Goods and services tax on unit linked charges are accounted as expenses in the Standalone Revenue Account.

2.17.    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 basis of best estimate of the outflow of economic resources 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.

2.18.    Segmental reporting Identification of segments

Based on the primary segments identified in accordance with AS 17 on “Segmental Reporting” notified under section 133 of the Companies Act 2013 and rules thereunder, the Regulation, and the Master Circular the Company has classified and disclosed segmental information separately for Shareholders' and Policyholders' in standalone financial statements. Within Policyholders', the businesses are further segmented into Participating (Life and Pension), NonParticipating (Life, Pension, Annuity and Health), Non-

denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences: Exchange differences arising on such conversions are recognised as income or as expenses in the period in which they arise either in the Standalone Revenue Account or the Standalone Profit and Loss Account, as the case may be.

2.20.    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.

2.21.    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. Receipts and Payments Account is prepared and reported using the Direct Method in accordance with Accounting Standard (AS) 3, “Cash Flow Statements” as per requirements of the Regulation and the Master Circular.

2.22. Unclaimed amount of policyholders

The unclaimed amount of policyholders is governed by the Master Circular, directives received from IRDAI vide email dated August 27, 2024 and Investment Regulations, 2016 as amended from time to time. The Company maintains a single segregated fund to manage all unclaimed amounts.

Unclaimed amount of policyholders' liability is determined on the basis of NAV of the units outstanding as at the valuation date.

Assets held for unclaimed amount of policyholders and unclaimed amount of policyholders' liability are considered as current assets and current liabilities, respectively and are disclosed in Schedule 12 “Advances and Other Assets” and Schedule 13 “Current Liabilities”.

Income on unclaimed amount of policyholders is accreted to the unclaimed fund and is accounted for on an accrual basis, net of fund management charges, and is disclosed under the head “Interest on unclaimed amounts” in Schedule 4 “Benefits paid” in Standalone Revenue Account.

The unclaimed of policyholders except litigation cases which are more than 10 years as on 30^th September every year, are transferred to the Senior Citizens' Welfare Fund (SCWF) on or before 1^st March of that financial year.