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, 2024, 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 2024, and a summary of significant accounting policies and other explanatory information, in which are included 8 Zonal Offices, 113 Divisional Offices and 78 units of Pension & Group Schemes audited by the zonal/divisional auditors appointed by the Corporation and audited returns of 3 foreign branches (Fiji, Mauritius and United Kingdom) audited by their respective local 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”), Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “Regulations”), 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 31,2024;

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 under Schedule 15A(C):

a) Note No. 20 regarding the liability on account of additional contribution of ' 11,124.66 crore arising due to fresh pension option to employees in the financial year 2019-20 is being provided over a period of five years commencing from the financial year 2019-20 in accordance with the requisite approval dated July 6, 2020. Accordingly, the remaining amount of ' 2,224.94 crore has been charged to Revenue Account for the year ended March 31,2024.

b) Note No. 21 regarding, total additional contribution of ' 11,959.52 crore towards increase in family pension due to amendment in LIC (Employees) Pension Rules 1995, out of which, the Corporation had already provided an amount of ' 2,679.15 crore during the quarter ended September 30, 2023. Pursuant to the approval received by the Corporation during the quarter ended December 31, 2023, the remaining liability of ' 9,280.37 crore is being amortised over 20 quarters commencing from Q3 of the FY 2023-24 amounting to ' 464.02 crore per quarter. Accordingly, an amount of ' 464.02 crore has been charged to Revenue Account for the quarter ended March 31,2024.The balance amount of ' 8,352.33 crore shall be amortised over the subsequent quarters upto Q2 of the FY 2028-29.

c) Note No. 22 regarding additional pension liability due to wage revision to employees of the Corporation amounting to ' 6,306.29 crore. Out of this, ' 829.19 crore has been recognized in the FY 2023-2024 in the respective segments and balance amount of ' 5,477.10 crore pertaining to Par segment shall be charged to the Shareholders account over a period of not exceeding three years commencing from the FY 2024-2025. The Corporation has obtained the requisite approval.

d) Note No. 23 regarding 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.The Corporation has obtained the requisite approval.

e) Note No. 26 regarding the change in accounting policy in September, 2022 with respect to transfer of amount pertaining to the accretion of the available solvency margin from Non-Participating Policyholders account to Shareholders account and resultant transfer of total amount of ' 29,518.75 crore (net of tax) in the FY 2023-24 compared to ' 27,240.75 crore in the FY 2022-23, which included an amount of ' 4,542.31 crore pertaining to the quarter ended March 31, 2022.

Our opinion is not modified in respect of the above matters.

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.

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 31,2024 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 3 foreign branches (United Kingdom, Mauritius and Fiji) included in the Standalone Financial Results and used for preparation of consolidated financial results reflect total assets of ' 5,062.41 crores as at March 31, 2024 total revenue of ' 730.15 crores and net loss of ' 5.16 crores for the year ended March 31, 2024. Our opinion on the consolidated financial results, 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.

15. We did not audit the financial statements / information of 8 Zonal Offices, 113 Divisional Offices (DO) (including branches there under) and 78 units of Pension & Group Schemes (P&GS) included in the Standalone Financial Results of the Corporation, whose audited financial statements / information, 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.

Our opinion is not modified in respect of the above matters.

Report on other legal and regulatory requirements.

16. As required by the Regulations, we have issued a separate certificate dated May 27, 2024 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the Regulations.

17. 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, 2024 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 31,2024 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.

18. Further, to our comments in the Certificate referred to in paragraph 16 above, as required under the Schedule C 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, 2024, 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 31,2024.

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 (Refer Schedule 16C(21) 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 15(C) Note No. 35 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 dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Corporation with effect from April 1, 2023.

Based on our examination which included test checks, the Corporation has used accounting software 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. Also database transaction log is available as mySQLbinlog. 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. Transaction level logs of ePGS can be derived from respective module tables.

Further, during the course of our audit, we did not come across any instances of audit trail feature being tampered with.

As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of the Audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

19. 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.

M/s. Batliboi and Purohit Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

FRN: 101048W FRN: 101872W/W100045

CA Parag Hangekar CA Vineet Saxena

Membership No.: 110096 Membership No.: 100770

Place: Mumbai Place: Mumbai

Date: May 27, 2024 Date: May 27, 2024

UDIN: 24110096BKCXHP6316 UDIN: 24100770BKCOSK8600