Annexure II: Draft Regulations

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITYOF INDIA,

HYDERABAD

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

(PREPARATION OF FINANCIAL STATEMENTS OF INSURERS) REGULATIONS, 20XX.

NOTIFICATION
HYDERABAD, the XXXX XXXXX, 20XX.
F. No. IRDA/Reg/XXX/XXXX: In exercise of the powers conferred by section 114A of the
Insurance Act, 1938, (4 of 1938), the Authority, in consultation with the Insurance Advisory
Committee, hereby makes the following regulations, namely: -

1. Short title and commencement

(1) These regulations may be called the Insurance Regulatory and Development Authority of
India (Preparation of Financial Statements of Insurers) Regulations, 20XX (‘The
Regulations’).
(2) They shall come into force with effect from accounting periods commencing on or after 1 st
April, 2018.
(3) On and from the commencement of these regulations, the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditor’s Report of
Insurance Companies) Regulations, 2002 shall stand repealed. Notwithstanding the said
repeal any things done or any action taken under the said Regulations shall be valid.

2. Definitions - In these regulations, unless the context otherwise requires ---

(1) “Act” means the Insurance Act, 1938 (4 of 1938).;

(2) “Authority” means the Insurance Regulatory and Development Authority of India
established under sub-section (1) of section 3 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999);
(3) “Indian Accounting Standards(Ind-AS)” means the Indian Accounting Standards notified
under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to
time.
(4) "Insurer" means the insurer as defined under section 2 (9) of the Act.

All words and expressions used herein and not defined but defined in the Insurance Act, 1938 (4
of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999),
shall have the meanings respectively assigned to them in those Acts. For the purpose of these
regulations, the terms and expressions defined in Ind AS shall prevail.

3. Preparation of financial statements ----An insurer holding certificate of registration granted

by the Authority shall comply with the Ind AS and the requirements of Schedule A (for Life
Insurance business); and Schedule B (for other than Life Insurance business, including branches
of foreign reinsurers)

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 SCHEDULE A

PART I

General instructions for preparation of Financial Statements

1. This Schedule prescribes the minimum disclosure requirements in the Financial Statements.

2. Line items, sub-line items and subtotals shall be presented as an addition or substitution on the
face of the Financial Statements when required for compliance with the Act,
Guidelines/Circulars issued by the IRDAI from time to time or specified in the Indian
Accounting Standards prescribed under the Companies (Indian Accounting Standards) Rules,
2015 (hereinafter referred to as ‘Ind AS’).

3. Where compliance with the requirements of the Act, Guidelines/Circulars issued by the IRDAI
from time to time and Ind AS applicable to insurance companies require any change in treatment
or disclosure including addition, amendment, substitution or deletion in the head or sub-head or
any changes, inter se, in the financial statements or statements forming part thereof, the same
shall be made and the requirements of this notification shall stand modified accordingly.

4. The disclosure requirements specified in this Schedule are in addition to and not in substitution
of the disclosure requirements specified in the Ind AS. Additional disclosures specified in the Ind
AS shall be made in the notes to accounts or by way of additional statements, unless required to
be disclosed on the face of the Financial Statements.

5. (i) In addition to the disclosures specified in this Schedule, notes to accounts shall provide where
required (a) narrative descriptions or disaggregation’s of items recognized in the Financial
Statements; and (b) information about items that do not qualify for recognition in Financial
Statements.

(ii) Each item on the face of the Financial Statements shall be cross-referenced to any related
information in the notes to accounts. In preparing the Financial Statements including the
notes to accounts, a balance shall be maintained between providing excessive detail that may
not assist users of financial statements and not providing important information as a result of
too much aggregation, unless specific information is required to be disclosed separately by
the Authority.
6. Financial Statements shall disclose all 'material' items, i.e. the items if they could, individually or
collectively, influence the economic decisions that users make on the basis of the financial
statements. Materiality depends on the size or nature of the item or a combination of both, to be
judged in the particular circumstances. An entity need not provide a specific disclosure required
by an Ind AS if the information is not material except when required by law.

7. The figures in the financial statements may be rounded off to the nearest lakhs.

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 PART II

Accounting principles for preparation of financial statements

1. Complete set of Financial Statements for the purpose of these Regulations comprises:
a) Balance Sheet (including Statement of Changes in Equity) in accordance with Ind AS1,
Presentation of Financial Statements.

b) Statement of Profit and Loss for the period, in accordance with Ind AS1, Presentation of
Financial Statements.

c) Revenue Account (Policyholders’ Account) and Profit and Loss Account (Shareholders’
Account), as required by the Insurance Act, 1938.

Provided that an insurer shall prepare Revenue Account and Balance Sheet for the
undermentioned businesses separately and to that extent the application of Ind AS 108,
Operating Segments, stand modified:
1) Participating and Non-Participating Policies
2) (i) Linked business separately for Life, Annuity, Pension, Health and Variable
Insurance
(ii) Non-Linked business separately for Life, Annuity, Pension, Health and
Variable Insurance
3) Business within India and Outside India

d) Receipts and Payments Account [Cash Flow Statement as per direct method in accordance
with Ind AS 7, Statement of Cash Flows].

e) Notes including:
 Summary of significant accounting policies.
 Other explanatory notes annexed to, or forming part of, any document referred to
in Sub-clause (a) to Sub-clause (d) above.
f) Comparative information in respect of the preceding period.

2. Premium:

Premium in respect of insurance contracts shall be recognized as income when due. For linked
business the due date for payment may be taken as the date when the associated units are created.

3. Acquisition Costs:

Acquisition costs are those costs that vary with and are primarily related to the acquisition of new
and renewal insurance contracts. The most essential test is the obligatory relationship between
costs and commencement of risk.

Acquisition costs, if any, shall be expensed in the period in which they are incurred.
4. Claims Cost:

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The cost of claims shall comprise the policy benefit amount and claims settlement costs, wherever
applicable.

5. Actuarial Valuation:

The estimation of liability in respect of insurance contracts for life policies shall be determined by
the appointed actuary of the insurer.

The liability shall be so calculated that together with future premiums and investment income, the
insurer can meet all future claims (including bonus entitlements to policyholders) and expenses.

6. Real Estate-Investment Property- The investment property shall be measured at

historical cost, subject to revaluation at fair value, at least once in every three years. The
change in the carrying amount of the investment property shall be recognised in Fair Value
Changes on Investment Property on account of policyholders as a liability and those on
account of shareholders in the Statement of Changes in Equity forming part of Balance Sheet.

The ‘Profit on disposal of investment property’ or ‘Loss on disposal of investment property’,

as the case may be, shall include accumulated changes in the carrying amount previously
recognised in Fair Value Changes on Investment Property in respect of a particular property
and recycled to the Statement of Profit and Loss and the relevant Revenue Account or Profit
and Loss Account on disposal of that property.

The bases for determination of fair value shall be disclosed in the notes to accounts. The
Authority may issue directions specifying the amount to be released from the Fair Value
Changes in Investment Property of Policyholders for declaring bonus to the policyholders.
For removal of doubt, it is clarified that except for the amount that is released to
policyholders as per the Authority’s direction, no other amount shall be distributed to
shareholders out of Fair Value Changes in Investment Property of Shareholders.

The insurer shall assess at each balance sheet date whether any impairment of the investment
property has occurred. Any impairment loss shall be treated as a decrease in the Fair Value
Changes Account of that asset and if the impairment loss exceeds the corresponding Fair
Value Changes Account, such excess shall be recognised in the Statement of Profit and Loss
and the relevant Revenue/Profit and Loss Account on disposal of that property.

4
 Part III
Balance Sheet including Statement of Changes in Equity
Name of insurance company

Registration No.... Date of Registration with IRDAI

Balance Sheet as at March 31, ........(Year)
Particulars Note No. Current Year Previous Year

ASSETS
Cash and Cash Equivalents 1
Assets classified as held for sale
Derivatives 2
Investments - Policyholders 3
Investments - Shareholders 4
Investment property 5
Loans 6
Reinsurance Assets 7
Other financial assets 8
Property, plant and equipment 9
Current tax recoverable
Deferred tax assets
Other assets (Other than intangible assets) 10
Goodwill 11
Other intangible assets 12
Total Assets

Liabilities & Equity

Liabilities
Derivatives 2
Investment Contracts Liabilities 13
Insurance Contracts Liabilities 14
Borrowings 15
Other financial liabilities 16
Current tax liabilities
Deferred tax liabilities
Other Liabilities 17
Provisions 18
Fair Value Changes on Investment Property
of policyholders
Total Liabilities (A)
Equity
Equity share capital
Other equity
Total Equity (B)
Total Liabilities & Equity (C)= (A) + (B)
Note: Assets classified as held for sale do not include financial assets which are governed by
Ind AS 109, Financial Instruments.

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 STATEMENT OF CHANGES IN EQUITY
Name of the Insurer
Registration No. ...Date of Registration with IRDAI

A. Equity Share Capital

Balance at the beginning of the reporting period Changes in Equity Share Capital during the year Balance at the end of the reporting period

B. Other Equity

Reserves and Surplus Deficit in

Particulars Share Equity Revenue Debt Equity Effective Revaluati Exchange Other Fair Total
applicatio component Capital Securities Other Retained Account instrument Instrumen Portion on differences items of Value
n money of Reserve Premium Reserves Earnings (Policyholder s through ts through of Cash Surplus on Other Changes
pending compound Reserve (specify s Account- Other Other Flow translating Compre in
allotment financial nature) Par) Comprehe Comprehe Hedges the hensive Sharehol
instruments nsive nsive financial Income ders
Income Income statements (specify Investme
of foreign nature) nt
operation Property
Balance at the beginning of the
reporting period
Changes in accounting policy
or prior period errors
Restated balance at the
beginning of the reporting
period
Total Comprehensive Income
for the year
Dividends

Transfer to retained earnings

Any other changes (to be
specified)
Balance at the end of the
reporting period

Note: Re-measurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such
items along with the relevant amounts in the Notes.

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 Notes to Balance Sheet

Note :1 - Cash and Cash equivalents

Particulars Current Year Previous Year
Cash (including cheques and drafts)

Bank balances in deposits and current accounts

Others (to be specified)

Total cash and cash equivalents

Cash and Cash equivalents

- In India
- Outside India
Total

Note 2 - Derivative Assets

Current year Previous year
Fair Cash Net investments in Undesignated Total Fair Cash Net Undesignated Total
Value Flow foreign operations Value Flow investment
Particulars Hedge Hedge Hedge Hedge s in foreign
operations

Currency Forwards
Interest Rate Swaps
Others (to be specified)
Total Derivative Assets

Derivative Liabilities

Current year Previous year

Fair Cash Net investments Undesignated Total Fair Cash Net Undesignated Total
Particulars Value Flow in foreign Value Flow investments
Hedge Hedge operations Hedge Hedge in foreign
operations

Currency Forwards
Interest Rate Swaps
Others (to be specified)
Total Derivative Liabilities

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Note 3 - Investments - Policyholders #
Current year Previous Year
Amortised At Fair Value Others* Tota Amortised At Fair Value Others* Total
Investments cost Through Other Through Designated at fair Sub- l cost Through Other Through Designated at fair Sub-
Comprehensive profit or loss value through profit Total Comprehensive profit or loss value through profit Total
Income or loss Income or loss
I. In India
Government securities
Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and

joint ventures

Others (specify)

Total – Gross (A)

Less: Impairment loss(B)

Total – Net C= (A)-(B)

II. Outside India

Government securities

Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and

joint ventures

Others (specify)

Total – Gross (D)

Less: Impairment loss(E)

Total – Net F=(D)-(E)
Total Investments
Gross (G) = (A) + (D)
Less: Impairment loss
(H)=(B) + (E)
Total – Net I= (G)-(H)
# Investments backing insurance contracts and investment contracts to be given separately.
* Other basis of measurement such as cost may be explained as a footnote

Note 4- Investments - Shareholders

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 Current year Previous Year
Amortise At Fair Value Others Others* Total Amortised At Fair Value Others Others* Total
d cost Through Other Through Designated at fair Sub- cost Through Other Through Designated Sub-Total
Investments Comprehensive Income profit or value through Total Comprehensive profit or at fair
loss profit or loss Income loss value
through
profit or
loss
I. In India
Government securities

Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and joint

ventures
Others (specify)

Total – Gross (A)

Less: Impairment loss (B)

Total – Net C= (A)-(B)
II. Outside India
Government securities

Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and joint

ventures
Others (specify)

Total – Gross (D)

Less: Impairment loss (E)

Total – Net F=(D)-(E)

Total Investments

Gross (G) = (A) + (D)

Less: Impairment loss H=(B) +(E)
Total – Net I=(G)-(H)

* Other basis of measurement such as cost may be explained as a footnote

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Note 5 - Investment property

Policyholders Shareholders Total

Particulars
Current Previous Current Previous Current Previous
Year year Year year Year year
LAND
At the beginning of the year
Additions
Disposals
Reclassification from/to held for sale
Fair Value changes
Other adjustments (please specify)
At the end of the year

Accumulated -impairment as at the beginning

of the year
Disposals
Impairment/(reversal of impairment )
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated impairment as at the end of
year
Net carrying amount of Land as at the end
of the year (A)
BUILDINGS
At the beginning of the year
Additions
Disposals
Reclassification from/to held for sale
Fair Value changes
Other adjustments (please specify)
At the end of the year
Accumulated impairment as at the beginning
of the year

Disposals
Impairment/(reversal of impairment )
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated impairment as at the end of
year
Net carrying amount of Buildings as at the
end of the year (B)
Investment Property under construction
(C)
TOTAL (D)=(A) + (B)+(C)

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Note 6- Loans

Current year Previous Year

Amortised Others Total Amortise Others* Total
cost At Fair Value Others * d cost At Fair Value Others
Particulars Through Other Through Designate Sub-Total Through Other Through Designated at Sub-
Comprehensiv profit or d at fair Comprehensiv profit or loss fair value Tota
e Income loss value e Income through profit l
through or loss
profit or
loss
A. SECURITY WISE CLASSIFICATION
Secured (A)
(a) On mortgage of property
i) In India
ii) Outside India
(b) On Shares, Bonds, Govt. Securities, etc.
(c) Loans against policies
(d) Others (to be specified)
Unsecured (B)
Gross (C)=(A)+(B)
Less Impairment loss (D)
Net (E)= (C)-(D)
B. BORROWER-WISE CLASSIFICATION

(a) Central and State Governments

(b) Banks and Financial Institutions
(c) Subsidiaries
(d) Other Companies
(e) Loans against policies
(f) Others (to be specified)
Gross (F)
Less Impairment loss (G)
Net (H)=(F)-(G)
C. PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard
i) In India
ii) Outside India
(b) Non-standard loans less provisions
i) In India
ii) Outside India
Gross (I)
Less Impairment loss (J)
Net (K)=(I)-(J)
TOTAL
* Other basis of measurement such as cost may be explained as a footnote

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Note 7- Reinsurance Assets
Particulars Current Year Previous Year
At the beginning of the year

Add/(Less)
Premium
Unwinding of the discount /Interest
credited
Change in valuation for expected future
benefits
Insurance liabilities released
Others (to be specified)

At the end of the year

Note 8-Other Financial Assets

Particulars Current Year Previous Year

Dividends Receivable
Interest Accrued
Rent Receivables
Application money for investments
Due from policyholders
Due from reinsurers
Due from insurers
Due from Insurance agents, Insurance Intermediaries
Others (to be specified)
Total

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Note9 -Property, plant and equipment
Land Buildings Equipment Furniture and Vehicles Others (to be Total
Fittings specified)
Particulars
Owned Leased Freehold Leasehold Owned Leased Owned Leased Owned Leased Owned Leased Owned Leased Total
Previous Year
At cost or fair value at the
beginning of the year
Additions
Revaluation adjustment, if
any
Disposals
Reclassification from/to
held for sale
Other adjustments (please
specify)
At cost or fair value at the
end of the year
Accumulated depreciation
and impairment as at the
beginning of the year
Depreciation for the year
Disposals
Impairment/(reversal) of
impairment
Reclassification from/to
held for sale
Other adjustments (please
specify)
Accumulated depreciation
and impairment as at the
end of year
Net carrying amount as at
the end of the year (A)
Capital Work in Progress
including advances for
capital assets (B)
Total (C) = (A) + (B)
Current year
At cost or fair value at the
beginning of the year
Additions
Revaluation adjustment, if
any
Disposals
Reclassification from/to
held for sale
Other adjustments (please

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specify)
At cost or fair value at the
end of the year
Accumulated depreciation
and impairment as at the
beginning of the year
Depreciation for the year
Disposals
Impairment/(reversal) of
impairment
Reclassification from/to
held for sale
Other adjustments (please
specify)
Accumulated depreciation
and impairment as at the
end of year
Net carrying amount as at
the end of the year (A)

Capital Work in Progress

including advances for
capital assets (B)
Total (C) = (A) + (B)

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Note 10- Other assets (Other than intangible assets)
Particulars Current Year Previous Year

Deposits with ceding companies

Prepayments
Stamps on Hand
Others (to be specified)

Total Other Assets(Other than

intangible assets)

Note 11- Goodwill

Particulars Current year Previous year
At cost, beginning of the year
Additions
Disposals
Other adjustments (to be specified)
Total cost
Accumulated impairment:
At beginning of the year
Additions
Disposals
Other adjustments (to be specified)
Total impairment
Net carrying amount

Note 12- Other Intangible assets

Others
Particulars
Software (to be Specified) Total
Previous Year
At cost or fair value at the beginning of
the year
Additions
Disposals
Other adjustments (to be specified)
At cost or fair value at the end of the year
Accumulated amortization and
impairment at beginning of the year
Amortization
Disposals
Impairment/(reversal) of impairment
Other adjustments (to be specified)
Total amortization and impairment
Net carrying amount (A)
Intangible assets under development

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(B)
Total (C)= (A) + (B)

Current Year
At cost or fair value at the beginning of
the year
Additions
Disposals
Other adjustments (to be specified)
At cost or fair value at the end of the year
Accumulated amortization and
impairment at beginning of the year
Amortization
Disposals
Impairment/(reversal) of impairment
Other adjustments (to be specified)
Total amortization and impairment
Net carrying amount (A)
Intangible assets under development
(B)
Total (C)= (A) + (B)

Note 13- Investment Contracts Liabilities

Current Year Previous Year
Particulars
With Linked With Linked
DPF Business Others Total DPF Business Others Total
At the beginning of the year

Additions
Premium
Interest and Bonus credited to
policyholders
Others (to be specified)

Deductions
Withdrawals / Claims
Fee Income and Other
Expenses
Others (to be specified)

At the end of the year

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Note 14 - Insurance contracts liabilities
Current Year Previous Year

Particulars Linked Linked

With Busines Other With Busines Other
DPF s s Total DPF s s Total
Gross Liability at the
beginning of the year
Add/(Less)
Premium
Unwinding of the discount
/Interest credited
Changes in valuation for
expected future benefits
Insurance liabilities released
Undistributed Participating
Policyholders surplus (UPPS)
Others (to be specified)
Gross Liability at the end of the
year
Recoverable from Reinsurance
Net Liability
Closing UPPS included in
gross liability at end of the
year

Note 15- Borrowings

Particulars Current Year Previous Year
Debentures/Bonds
Borrowings from Banks
Borrowings from Financial Institutions
Others (to be specified)
Total

Note 16- Other financial liabilities

Particulars Current Year Previous Year
Insurance Agents and Insurance Intermediaries' Balances
Balances due to Other Insurers
Reinsurance Payables
Sundry Creditors
Claims Outstanding
Unclaimed amounts
Others (to be specified)
Total

17
 Note17: Other Liabilities
Particulars Current Year Previous Year
Deposits held on reinsurance ceded
Premiums received in advance
Unallocated Premium
Rates and Taxes Payable
Others (to be specified)
Total Other Liabilities

Note 18- Provisions

Particulars Current Previous
Year Year
For defined benefit plans
Others ( to be specified)
Total Provisions

19. Additional disclosures forming part of Balance Sheet.

a) Contingent Liabilities and Commitments (to the extent not provided for)

1. Contingent Liabilities shall be classified as:

i. Claims, other than those under policies not acknowledged as debt;

ii. Reinsurance obligations;

iii. Statutory demands/liabilities in dispute, not provided for;

iv. Other money for which the company is contingently liable.

2. Commitments shall be classified as:

i. Estimated amount of contracts remaining to be executed on capital account

and not provided for;

ii. Uncalled liability on shares and other investments partly paid;

iii. Other commitments (specify nature).

b) Encumbrances to assets of the company in and outside India.

c) Contracted amount in relation to investments for:

i). Purchases where deliveries are pending;

ii). Sales where payments are overdue.

20. Extent of risk retained and reinsured in respect of insurance contracts.

21. Claims settled and remaining outstanding for a period of more than six months on the
balance sheet date.

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22. The amount of dividends proposed to be distributed to equity and preference shareholders for
the period and the related amount per share shall be disclosed separately. Arrears of fixed
cumulative dividends on irredeemable preference shares shall also be disclosed separately.

23. When a company applies an accounting policy retrospectively or makes a restatement of

items in the financial statements or when it reclassifies items in its financial statements the
company shall attach to the Balance Sheet, a "Balance Sheet" as at the beginning of the
earliest comparative period shall be presented.

24. Share application money pending allotment shall be classified into equity or liability in
accordance with relevant Indian Accounting Standards. Share application money to the
extent not refundable shall be shown under the head Equity and share application money to
the extent refundable shall be separately shown under 'Other financial liabilities'.

25. Preference shares including premium received on issue, shall be classified and presented as
'Equity' or 'Liability' in accordance with the requirements of the relevant Indian Accounting
Standards. Accordingly, the disclosure and presentation requirements in this regard
applicable to the relevant class of equity or liability shall be applicable mutatis mutandis to
the preference shares. For instance, where redeemable preference shares are classified and
presented under ‘liabilities' as 'borrowings', the disclosure requirement in this regard
applicable to borrowings shall be applicable mutatis mutandis to such redeemable preference
shares.

26. Compound financial instruments such as convertible debentures where split into equity and
liability components, as per the requirements of the relevant Indian Accounting Standards,
shall be classified and presented under the relevant heads in ‘Equity’ and 'Liabilities'.

27. Actuarial assumptions for valuation of liabilities for life policies in force.

28. All liabilities related to investment contracts including those contracts having insignificant
insurance risk shall be disclosed in Note 13: Investment Contracts Liabilities

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 Part IV
STATEMENT OF PROFIT AND LOSS, REVENUE (POLICYHOLDERS') and PROFIT & LOSS (SHAREHOLDERS') ACCOUNTS
Statement of Profit and Loss of .............. (Name of insurance company)
for the period ended ........
Particulars Note No. Current Year Previous Year

Gross Premium 29
Investment Income 30
Commission Received on Reinsurance Ceded 31
Net gain on fair value changes 32
Net gain on derecognition of financial assets at amortised cost
Recoveries from Reinsurers-Benefits
Other Income 33
Total Income
Premium on Reinsurance Ceded
Gross Benefits 34
Net change in insurance contract liabilities 35
Acquisition cost 36
Employee benefits 37
Impairment loss (including reversals) 38
Net losses on fair value changes 32
Net loss on derecognition of financial assets at amortised cost
Finance cost 39
Other expenses 40
Total Expenses

Profit / (Loss) before tax and Exceptional Items

Exceptional Items

Profit/ (Loss) before tax

Income tax Expense 41

Profit /(Loss) from continuing operations (A)

Profit /(Loss) from discontinued operations

Tax expense of discontinued operations

Profit/(loss) from discontinued operations (after tax) (B)

Profit/(loss) for the period

Other Comprehensive Income

1 (i) Items that will not be reclassified to profit or loss (specify
items and amounts)
(ii) ) Income tax relating to items that will not be reclassified to
profit or loss

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Subtotal
2 (i) Items that will be reclassified to profit or loss (specify items
and amounts)
(ii) Income tax relating to items that will be reclassified to profit
or loss
Subtotal
Total Other Comprehensive Income (C)

Total Comprehensive Income (D)=(A+B+C)

Earnings per Equity Share (for continuing operations)
(1) Basic
(2) Diluted
Earnings per Equity Share (for discontinued operations)
(1) Basic
(2) Diluted
Earnings per Equity Share for profit/(loss) the period (for
discontinued and continuing operations)
(1) Basic
(2) Diluted

21
 STATEMENT OF PROFIT AND LOSS, REVENUE (POLICYHOLDERS') and PROFIT & LOSS (SHAREHOLDERS') ACCOUNTS
For the period.....
Name of insurance company
Registration No. ....Date of Registration
Particulars Note Current Year Previous Year
No.

Revenue Profit & Total as Revenue Profit & Loss Total as

(Policyhol Loss per (Policyholders) (Shareholders) per
ders) (Sharehold Statement Account Account Statement
Account ers) of Profit & of Profit
Account Loss & Loss
Gross Premium 29
Investment Income 30
Commission Received on Reinsurance Ceded 31
Net gain on fair value changes
32
Net gain on derecognition of financial assets at
amortised cost
Recoveries from Reinsurers- Benefits

Other Income 33
Total Income
Premium on Reinsurance Ceded
Gross Benefits 34
Net change in insurance contract liabilities 35
Acquisition cost 36
Employee benefits 37
Impairment loss (including reversals) 38
Net losses on fair value changes 32

Net loss on derecognition of financial assets at

amortised cost
Finance cost 39
Other expenses 40
Total Expenses
Surplus (Deficit)/Profit (Loss) before Tax and
Exceptional items
Exceptional Items
Surplus (Deficit)/Profit (Loss) before Tax
Income Tax Expense 41
Surplus (Deficit)/Profit (Loss) from continuing
operations (A)
Surplus (Deficit)/Profit (Loss) from discontinued
operations

Tax expense from discontinued operations

Surplus (Deficit)/Profit (Loss) from discontinued
operations after Tax (B)
Surplus (Deficit)/Profit (Loss) for the period (C ) =
(A) + (B)
Other Comprehensive Income

1 (i) Items that will not be reclassified to profit or

loss (specify items and amounts)
(ii) ) Income tax relating to items that will not be
reclassified to profit or loss
Subtotal
2 (i) Items that will be reclassified to profit or loss
(specify items and amounts)
(ii) ) Income tax relating to items that will be
reclassified to profit or loss

22
 Subtotal
Total Other Comprehensive Income (D)
Total Comprehensive Income E= (C ) + (D)
Deficit Funding (transfer) from Shareholders
(P&L) Account to Policyholders (Revenue
Account) (F)*
Transfer to Shareholders (P&L) Account from
Policyholders (Revenue Account)*
Balance Deficit on Par carried to Statement of
Changes in Equity
* Transfers between Shareholders’ P&L Account and Policyholders’ Revenue Account will be reflected with
‘transfer to’ as a positive balance with contra negative entry where funds are being ‘transferred from’

23
Notes to statement of profit and loss

Note 29 - Gross Premium

Particulars Current Year Previous Year

Life Insurance Premium

- First year premium
- Single premium
- Renewal premium
Gross Premium from Direct Business- Sub-Total
Reinsurance Accepted
Total Gross Premium (A)

Total Gross Premium

Less: Reinsurance Ceded(B)
Net Premium (C)= (A)-(B)

Gross Premium Current Year Previous Year

- In India
- Outside India
Total Gross Premium

Note 30 - Investment Income

Particulars Current Year Previous Year
Rental Income from Investment
properties
Interest on financial assets classified
as:
Fair value through OCI
Amortised Cost
Dividend
Total Investment Income

Note 31–Commission received on reinsurance ceded

Particulars Current Previous Year
Year
Reinsurance commission on business ceded ( direct )
Reinsurance commission on business ceded (reinsurance
accepted )
Others

Total

24
 Note 32- Net gain/(loss) on fair value changes*
Particulars Current Year Previous Year
a) Investments classified atFair Value Through Profit or Loss
b) Investments designated at Fair Value Through Profit or Loss
c) Derivatives at Fair Value Through Profit or Loss
d) Other Financial Instruments classified as Fair Value Through Profit or
Loss
e) Other Financial Instruments designated at Fair Value Through Profit or
Loss
f) Reclassification adjustments
g) Realised gain on debt instruments classified as Fair Value Through OCI
h) Others (to be specified)
Total Net gain/(loss) on fair value changes (A)
Fair Value Changes
Realised
Unrealised
Total Net gain /(loss) on fair value changes (B) to tally with (A)
*Total Fair Value changes includes ..xxx (PY: Rs.xxx) interest income in respect of investments
classified/designated as Fair Value Through Profit or Loss.

Note 33 - Other Income

Current
Particulars Year Previous Year
Net foreign exchange gain
Fee Income on Derivative and Guarantee Contracts
Fee Income from Asset Management
Interest on Loans (other than those related to investment income, covered in
Note 30)
Others (to be specified)
Total Other Income

Note 34- Gross Benefits

Particulars Current Year Previous Year
Life insurance contracts benefits
- Death
- Maturity
- Annuities/Pensions
- Surrenders
- Interim Bonus paid
- Other benefits, specify
Reinsurance Accepted
Total Gross Benefits (A)

Total Gross Benefits

Less: Reinsurance Recoveries(B)
Net Benefits (C)= (A) - (B)

Gross Benefits
- In India
- Outside India

25
Total Gross Benefits

Note 35- Net change in insurance contract liabilities

Particulars Current Year Previous Year

With Linked With Linked Tota

DPF Business Others Total DPF Business Others l
a) Policy Liabilities
Non-unit / mathematical
reserves (gross)
Allocation of Bonus to
Participating Policyholders
Unit linked fund
Discontinued policy fund
Undistributed Participating
Policyholders surplus (UPPS)
b) Amount ceded in reinsurance
c) Amount accepted in reinsurance
Net change in insurance contract
liabilities
Service tax on linked charges
Net change in insurance contract
liabilities (including service tax
on linked charges)

Note 36- Acquisition cost

Particulars Current Year Previous Year

Commission on Life Insurance

- First year premium
- Single premium
- Renewal premium
Commission on Reinsurance Accepted
Medical expenses
Others (to be specified)

Acquisition Cost for Insurance Contracts

Note 37 Employee benefits

Particulars Current Year Previous Year
Salaries and wages including bonus
Post employment benefits
Employee Share Based Payments
Others
Total

26
Note 38- Impairment loss (including reversals)
Particulars Current Year Previous Year
Impairment on
Financial assets
Investment property
Property, plant & equipment
Goodwill
Other Intangible assets
Total Impairment Loss

Note 39- Finance cost

Particulars Current Year Previous Year

Interest on financial liabilities measured at amortised cost

Dividend on redeemable preference shares treated as liability
Dividend distribution tax on redeemable preference shares
treated as liability
Others (to be specified)
Total Finance Cost

Note 40- Other Expenses

Particulars Current Year Previous Year

Travel & conveyance

Rent
Rates & taxes (excluding taxes on income)
Energy cost
Repairs & maintenance
Printing and stationery
Communication expenses
Legal and professional charges
Auditor’s fees for
audit of the financial statements
taxation matters
company law matters
other services
reimbursement of expenses
Advertisement and publicity
Bank charges
Depreciation & amortisation expenses
Net foreign exchange loss
Acquisition Cost for Financial Instruments classified/designated
as FVTPL
Miscellaneous expenses
Total Other Expenses

27
 Note 41 - Income Tax Expense
Previous
Particulars Current Year
Year
Current Tax
Deferred Tax
Total Income Tax Expense

Additional disclosures in the notes

42. Basis of allocation and apportionment of expenses (other than Commission) to various classes of
insurance business.

43 Computation of managerial remuneration.

44 Apart from the requirement of reflecting the Revenue Account as required under clause 1 (c ) of Part I of
Schedule A, the insurance entity shall also present segment information in accordance with the Ind AS as
applicable

45 Premium to be shown net of service tax collected from the policyholders.

46 Items of expense and income in excess of one percent of the total premium (less reinsurance) or A5 lakh
whichever is higher shall be shown separately

Part V

OTHER DISCLOSURES

47. Asset liability position for linked business is to be prepared for all lines of linked business
(individual and cumulative) in the following format:
Asset Liability Position: Linked business
Current Year Previous Year
Particulars
Unit Non-Unit Unit Non-Unit
Investments
Other Assets
Total assets (A)
Policy Liabilities
Other Liabilities
Total Liabilities (B)

28
48. Percentage of business sector-wise (Rural Sector, Social Sector)

49. Disclosures relating to Discontinued Policies shall be disclosed as may be prescribed by the
Authority;

50. Controlled fund details shall be disclosed as may be prescribed by the Authority;

51. Details of various penal actions taken by various Government Authorities shall be disclosed as
may be prescribed by the Authority;

52. Unclaimed amounts of policyholders shall be disclosed as may be prescribed by the Authority;

53. A summary of financial statements for the last five years, in the manner as may be prescribed by
the Authority;

54. Accounting Ratios as may be prescribed by the Authority.

29
 SCHEDULE B

PART I

General instructions for preparation of Financial Statements

1. This Schedule prescribes the minimum disclosure requirements in the Financial Statements.

2. Line items, sub-line items and subtotals shall be presented as an addition or substitution on the
face of the Financial Statements when required for compliance with the Act,
Guidelines/Circulars issued by the IRDAI from time to time or specified in the Indian
Accounting Standards prescribed under the Companies (Indian Accounting Standards) Rules,
2015 (hereinafter referred to as ‘Ind AS’).

3. Where compliance with the requirements of the Act, Guidelines/Circulars issued by the IRDAI
from time to time and Ind AS applicable to insurance companies require any change in treatment
or disclosure including addition, amendment, substitution or deletion in the head or sub-head or
any changes, inter se, in the financial statements or statements forming part thereof, the same
shall be made and the requirements of this notification shall stand modified accordingly.

4. The disclosure requirements specified in this Schedule are in addition to and not in substitution
of the disclosure requirements specified in the Ind AS. Additional disclosures specified in the Ind
AS shall be made in the notes to accounts or by way of additional statements, unless required to
be disclosed on the face of the Financial Statements.

5. (i) In addition to the disclosures specified in this Schedule, notes to accounts shall provide where
required (a) narrative descriptions or disaggregation’s of items recognized in the Financial
Statements; and (b) information about items that do not qualify for recognition in Financial
Statements.

(ii) Each item on the face of the Financial Statements shall be cross-referenced to any related
information in the notes to accounts. In preparing the Financial Statements including the
notes to accounts, a balance shall be maintained between providing excessive detail that may
not assist users of financial statements and not providing important information as a result of
too much aggregation, unless specific information is required to be disclosed separately by
the Authority.

6. Financial Statements shall disclose all 'material' items, i.e. the items if they could, individually or
collectively, influence the economic decisions that users make on the basis of the financial
statements. Materiality depends on the size or nature of the item or a combination of both, to be
judged in the particular circumstances.

7. The figures in the financial statements may be rounded off to the nearest lakhs.

30
 PART II

Accounting principles for preparation of financial statements

1. Complete set of Financial Statements for the purpose of these Regulations

comprises:

a) Balance Sheet (including Statement of Changes in Equity) in accordance with Ind AS 1,

Presentation of Financial Statements.
b) Statement of Profit and Loss for the period, in accordance with Ind AS1, Presentation of
Financial Statements.
c) Revenue Account (Policyholders’ Account) and Profit and Loss Account (Shareholders’
Account), as required by the Insurance Act, 1938.

Provided that an insurer shall prepare Revenue Account separately for fire, marine and
miscellaneous insurance business and separate schedules shall be prepared for the
following lines of business. The insurer shall also prepare segmental reporting in line with
the requirements of Ind AS 108, Operating Segments.

i). Fire
ii). Marine Cargo and Marine (Other than Marine Cargo)
iii). Motor
iv). Health including Personal Accident
a. Health Retail
b. Health Group
c. Health Government Schemes
v). Miscellaneous
a. Retail
b. Group/Corporate
vi). Any other segment which contributes more than 10 percent of the Miscellaneous
class of business;
vii). Any other class as may be specified by the Authority

d) Receipts and Payments Account [Cash Flow Statement as per indirect method for
reinsurers and direct method in case of others in accordance with Ind AS 7, Statement of
Cash Flows].

e) Notes including:
 Summary of significant accounting policies.
 Other explanatory notes annexed to, or forming part of, any document referred to
in Sub-clause (a) to Sub-clause (d) above.
f) Comparative information in respect of the preceding period.

31
2. Premium:

General insurance business

Premium in respect of insurance contracts shall be recognized as income over the contract period
or the period of risk, whichever is appropriate.

A liability for unearned premium shall be created as the amount representing that part of the
premium written which is attributable to, and to be allocated to the succeeding accounting periods
as may be prescribed by the Authority.

Reinsurance business

Premium in respect of reinsurance contracts shall be recognized as income over the contract
period or the period of risk, whichever is appropriate.

A liability for unearned premium shall be created as the amount representing that part of the
premium written which is attributable to, and to be allocated to the succeeding accounting
periods, as may be prescribed by the Authority.

Provision for Premium Deficiency: General Insurance business and Reinsurance business

Provision for Premium deficiency shall be recognized if the sum of expected claims costs
related expenses and maintenance costs exceeds related provision for unearned premium.

Liability towards Unearned Premium: General Insurance business and Reinsurance business
A Liability towards Unearned Premium shall be created as the amount representing that part
of the premium written which is attributable to, and is to be allocated to the succeeding
accounting periods. Such a liability shall be computed as under:

a) Marine Hull: 100 percent of Net Written Premium during the preceding twelve
months;
b) Other Segments: Insurers have an option to create Liability towards Unearned
Premium (LUP) either at 50 percent of Net Written Premium of preceding twelve
months or on the basis of 1/365th method on the unexpired period of the respective
policies.

The insurers can follow either percentage or 1/365th method for computation of LUP of the other
segments. However, Insurers shall follow the method of provisioning of LUP in a consistent
manner. Any change in the method of provisioning shall be done only with the prior written
approval of the Authority.

3. Acquisition Costs:

Acquisition costs are those costs that vary with and are primarily related to the acquisition of new
and renewal insurance contracts. The most essential test is the obligatory relationship between
costs and commencement of risk.

Acquisition costs, if any, shall be expensed in the period in which they are incurred.

32
4. Claims Cost:

The components of the cost of claims comprise the claims under policies and claims settlement
costs. Claims under policies comprise the claims made for losses incurred, and those estimated or
anticipated under the policies, following the loss occurrence event.

A liability for outstanding claims shall be brought to account in respect of both direct business
and inward reinsurance business. The liability shall include:

(a) Future amounts payable in relation to reported claims; and

(b) Claims Incurred But Not Reported (IBNR) including Claims Incurred But Not Enough
Reported (IBNER) as per actuarial valuation;

which will result in future cash/asset outgo for settling liabilities against those claims.
Change in estimated liability represents the difference between the estimated liability for
outstanding claims in respect of claims under policies whether due or intimated at the
beginning and at the end of the financial period. The accounting estimate shall also include
claims cost adjusted for estimated salvage value if there is sufficient degree of certainty of its
realization.

5. Actuarial Valuation:

Estimate of claims made in respect of any contracts shall be recognized on an actuarial basis,
subject to regulations that may be prescribed by the Authority.

6. These Regulations shall apply mutatis mutandis to health insurers and reinsurers, unless stated
otherwise.

33
 Part III
Balance Sheet including Statement of Changes in Equity
Name of insurance company

Registration No.... Date of Registration with IRDAI

Balance Sheet as at March 31, ........(Year)
Particulars Note No. Current Year Previous Year

ASSETS
Cash and Cash Equivalents 1
Assets classified as held for sale
Derivatives 2
Investments - Policyholders 3
Investments - Shareholders 4
Investment property 5
Loans 6
Reinsurance Assets 7
Other financial assets 8
Property, plant and equipment 9
Current tax recoverable
Deferred tax assets
Other assets(Other than intangible assets) 10
Goodwill 11
Other intangible assets 12
Total Assets

Liabilities & Equity

Liabilities
Derivatives 2
Investment Contracts Liabilities 13
Reinsurers share in investment contracts liabilities 14
Insurance Contracts Liabilities 15
Insurance Contracts Liabilities for reinsurance
accepted 16
Borrowings 17
Other financial liabilities 18
Current tax liabilities
Deferred tax liabilities
Other Liabilities 19
Provisions 20
Total Liabilities (A)
Equity
Equity share capital
Other equity
Total Equity (B)
Total Liabilities & Equity (C)= (A) + (B)
Note: Assets classified as held for sale do not include financial assets which are governed by
Ind AS 109, Financial Instruments

34
 STATEMENT OF CHANGES IN EQUITY
Name of the Insurer
Registration No. ...Date of Registration with IRDAI

A. Equity Share Capital

Balance at the beginning of the reporting period Changes in Equity Share Capital during the year Balance at the end of the reporting period

B. Other Equity

Reserves and Surplus

Particulars Share Equity Debt Equity Effective Revaluation Exchange Other items Total
applicatio component instruments Instruments Portion Surplus differences on of Other
n money of compound Capital Securities Other Retained through through of Cash translating the Comprehen
pending financial Reserve Premium Reserves Earnings Other Other Flow financial statements sive Income
allotment instruments Reserve (specify Comprehensi Comprehens Hedges of foreign operation (specify
nature) ve Income ive Income nature)

Balance at the beginning of the

reporting period
Changes in accounting policy
or prior period errors
Restated balance at the
beginning of the reporting
period
Total Comprehensive Income
for the year
Dividends

Transfer to retained earnings

Any other changes (to be

specified)
Balance at the end of the
reporting period

Note: Remeasurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of
such items along with the relevant amounts in the Notes.

35
 Notes to Balance Sheet

Note 1 - Cash and Cash equivalents

Particulars Current Year Previous Year
Cash (including cheques and drafts)

Bank balances in deposits and current accounts

Others (to be specified)

Total cash and cash equivalents

Cash and Cash equivalents

- In India
- Outside India
Total

Note 2 - Derivative Assets

Current year Previous year

Fair Cash Net Undesignated Total Fair Cash Net Undesignated Total
Value Flow investments Value Flow investments
Particulars Hedge Hedge in foreign Hedge Hedge in foreign
operations operations

Currency Forwards
Interest Rate Swaps
Others (to be specified)
Total Derivative Assets

Derivative Liabilities

Current year Previous year

Fair Cash Net Undesignated Total Fair Cash Net Undesignated Total
Particulars Value Flow investments Value Flow investments
Hedge Hedge in foreign Hedge Hedge in foreign
operations operations

Currency Forwards
Interest Rate Swaps
Others (to be specified)
Total Derivative Liabilities

36
Note 3 - Investments - Policyholders #

Current year Previous Year

Amortised At Fair Value Others* Tota Amortised At Fair Value Others* Total
Investments cost Through Other Through Designated at fair Sub- l cost Through Other Through Designated at fair Sub-
Comprehensive profit or loss value through profit Total Comprehensive profit or loss value through profit Total
Income or loss Income or loss
I. In India
Government securities

Debt securities

Equity instruments

Mutual funds
Subsidiaries, associates and
joint ventures
Others (specify)
Total – Gross (A)

Less: Impairment loss(B)

Total – Net C= (A)-(B)
II. Outside India

Government securities

Debt securities

Equity instruments

Mutual funds
Subsidiaries, associates and
joint ventures

Others (specify)

Total – Gross (D)

Less: Impairment loss(E)
Total – Net F=(D)-(E)
Total Investments
Gross (G) = (A) + (D)
Less: Impairment loss
(H)=(B) + (E)
Total – Net I= (G)-(H)
# Investments backing insurance contracts and investment contracts to be given separately.
* Other basis of measurement such as cost may be explained as a footnote

Note 4 - Investments - Shareholders

37
 Current year Previous Year
Amortised At Fair Value Others Others* Total Amortised At Fair Value Others Others* Total
cost Through Other Through Designated at Sub-Total cost Through Other Through Designated at Sub-
Investments
Comprehensive profit or fair value Comprehensive profit or fair value Total
Income loss through profit Income loss through profit
or loss or loss
I. In India
Government securities

Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and

joint ventures
Others (specify)

Total – Gross (A)

Less: Impairment loss (B)
Total – Net C= (A)-(B)

II. Outside India

Government securities

Debt securities

Equity instruments

Mutual funds

Subsidiaries, associates and

joint ventures
Others (specify)

Total – Gross (D)

Less: Impairment loss (E)

Total – Net F=(D)-(E)

Total Investments

Gross (G) = (A) + (D)

Less: Impairment loss
H=(B) +(E)
Total – Net I=(G)-(H)

* Other basis of measurement such as cost may be explained as a footnote

38
Note 5 - Investment property
Policyholders Shareholders Total
Particulars
Current Previou Current Previous Curren Previou
Year s year Year year t Year s year
LAND
At the beginning of the year
Additions
Disposals
Reclassification from/to held for sale
Other adjustments (please specify)
At the end of the year

Accumulated impairment as at the

beginning of the year
Disposals
Impairment/(reversal of impairment )
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated impairment as at the
end of year
Net carrying amount as at the end
of the year(A)

BUILDINGS
At the beginning of the year
Additions
Disposals
Reclassification from/to held for sale
Other adjustments (please specify)
At the end of the year
Accumulated depreciation and
impairment as at the beginning of the
year
Depreciation for the year
Disposals
Impairment/(reversal of impairment )
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated depreciation and
impairment as at the end of year
Net carrying amount as at the end
of the year (B)
Investment property under
Construction (C)
TOTAL (D)= (A) + (B)+(C)

39
Note 6- Loans

Current year Previous Year

Amortised Others Total Amortise Others* Total
cost At Fair Value Others * d cost At Fair Value Others
Particulars Through Other Through Designate Sub-Total Through Other Through Designated at Sub-
Comprehensiv profit or d at fair Comprehensiv profit or loss fair value Tota
e Income loss value e Income through profit l
through or loss
profit or
loss
A. Security Wise Classification
Secured (A)
(a) On mortgage of property

i) In India

ii) Outside India

(b) On Shares, Bonds, Govt. Securities, etc.

(c) Loans against policies

(d) Others (to be specified)

Unsecured (B)
Gross (C)=(A)+(B)

Less Impairment loss (D)

Net (E)= (C)-(D)

B. BORROWER-WISE CLASSIFICATION

(a) Central and State Governments

(b) Banks and Financial Institutions
(c) Subsidiaries
(d) Other Companies
(e) Loans against policies
(f) Others (to be specified)
Gross (F)
Less Impairment loss (G)

Net (H)=(F)-(G)

C. PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard
i) In India
ii) Outside India
(b) Non-standard loans less provisions
i) In India
ii) Outside India
Gross (I)
Less Impairment loss (J)
Net (K)=(I)-(J)
TOTAL

* Other basis of measurement such as cost may be explained as a footnote

40
41
Note 7 - Reinsurance Assets
Particulars Current Year Previous Year
Recoverable at the beginning of the year

Recoveries for the year

Outstanding claims reserve
IBNR
Unearned premium
Premium deficiency reserve
Others (to be specified)

Recoverable at the end of the year

Note 8-Other Financial Assets

Particulars Current Year Previous Year

Dividends Receivable
Interest Accrued
Rent Receivables
Application money for investments
Due from policyholders
Due from reinsurers
Due from insurers
Due from Insurance agents, Insurance
Intermediaries
Others (to be specified)
Total

42
Note 9 -Property, plant and equipment
Land Buildings* Equipment Furniture and Vehicles Others (to be Total
Fittings specified)
Particulars
Freehol Freehol Owne Owne
d Leasehold d Leasehold Owned Leased Owned Leased d Leased d Leased Owned Leased Total
Previous Year
At cost or fair value at the beginning of the year
Additions
Revaluation adjustment, if any
Disposals
Reclassification from/to held for sale
Other adjustments (please specify)
At cost or fair value at the end of the year
Accumulated depreciation and impairment as at the beginning of the
year
Depreciation for the year
Disposals
Impairment/(reversal) of impairment
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated depreciation and impairment as at the end of year
Net carrying amount as at the end of the year (A)
Capital Work in Progress including advances for capital assets (B)
Total (C) = (A) + (B)
Current year
At cost or fair value at the beginning of the year
Additions
Revaluation adjustment, if any
Disposals
Reclassification from/to held for sale
Other adjustments (please specify)
At cost or fair value at the end of the year
Accumulated depreciation and impairment as at the beginning of the
year
Depreciation for the year
Disposals
Impairment/(reversal) of impairment
Reclassification from/to held for sale
Other adjustments (please specify)
Accumulated depreciation and impairment as at the end of year
Net carrying amount as at the end of the year (A)
Capital Work in Progress including advances for capital assets (B)
Total (C)= (A) + (B)

43
Note 10 - Other assets (Other than intangible assets)
Particulars Current Year Previous Year

Deposits with ceding companies

Prepayments
Stamps on Hand
Others (to be specified)

Total Other Assets

Note 11- Goodwill

Particulars Current year Previous year
At cost, beginning of the year
Additions
Disposals
Other adjustments (to be specified)
Total cost
Accumulated impairment:
At beginning of the year
Additions
Disposals
Other adjustments (to be specified)
Total impairment
Net carrying amount

Note 12- Other Intangible assets

Others
Particulars
Software (to be Specified) Total
Previous Year
At cost or fair value at the beginning of the
year
Additions
Disposals
Other adjustments (to be specified)
At cost or fair value at the end of the year
Accumulated amortization and impairment
at beginning of the year
Amortization
Disposals
Impairment/(reversal) of impairment
Other adjustments (to be specified)
Total amortization and impairment
Net carrying amount (A)
Intangible assets under development (B)
Total (C) = (A) + (B)

Current Year
At cost or fair value at the beginning of the
year
Additions
Disposals
Other adjustments (to be specified)
At cost or fair value at the end of the year
Accumulated amortization and impairment
at beginning of the year
Amortization
Disposals
Impairment/(reversal) of impairment
Other adjustments (to be specified)
Total amortization and impairment
Net carrying amount (A)
Intangible assets under development (B)
Total (C) = (A) + (B)

Note 13 - Investment contracts liabilities

Particulars Current Year Previous Year
Gross Liability at the beginning of the year
Add/(Less)
Change in liability arising from investment
contracts
Gross Liability at the end of the year

Note 14 – Reinsurers share in investment contracts liabilities

Particulars Current Year Previous Year
Recoverable at the beginning of the year

Reinsurers share in change in investment

contract liabilities

Recoverable at the end of the year

Note 15 - Insurance contracts liabilities

Particulars Current Year Previous Year
Gross Liability at the beginning of the year
Add/(Less)
Change in outstanding claims reserve
Change in IBNR
Changes in unearned premium
Changes in provision for premium
deficiency
Others (to be specified)
Gross Liability at the end of the year

Movement in each item shall be shown separately

Note 16 - Insurance contracts liabilities for reinsurance accepted

Particulars Current Year Previous Year
Gross Liability at the beginning of the year
Add/(Less)
Change in outstanding claims reserve
Change in IBNR
Changes in unearned premium
Changes in provision for premium deficiency
Others (to be specified)
Gross Liability at the end of the year

Note 17- Borrowings

Particulars Current Year Previous Year
Debentures/Bonds
Borrowings from Banks
Borrowings from Financial Institutions
Others (to be specified)
Total

Note 18 - Other financial liabilities

Particulars Current Year Previous Year
Balances due to Agents and other Intermediaries
Balances due to Other Insurers
Reinsurance Payables
Sundry Creditors
Unclaimed amounts
Others (to be specified)
Total
 Note 19: Other Liabilities
Particulars Current Year Previous Year
Deposits held on reinsurance ceded
Premiums received in advance
Unallocated Premium
Rates and Taxes Payable
Others (to be specified)
Total Other Liabilities

Note 20- Provisions

Particulars Current Year Previous Year
For defined benefit plans
Others ( to be specified)
Total Provisions

Additional disclosures forming part of Balance Sheet

21.
a) Contingent Liabilities and Commitments (to the extent not provided for)

1. Contingent Liabilities shall be classified as:

i). Claims, other than those under policies, not acknowledged as debt

ii). Reinsurance obligations;

iii). Statutory demands/liabilities in dispute, not provided for;

iv). Other money for which the company is contingently liable.

2. Commitments shall be classified as:

i). Estimated amount of contracts remaining to be executed on capital

account and not provided for;

ii). Uncalled liability on shares and other investments partly paid;

iii). Other commitments (specify nature).

b) Encumbrances to assets of the company in and outside India.

c) Contracted amount in relation to investments for:

i). Purchases where deliveries are pending;

ii). Sales where payments are overdue.

22. Extent of risk retained and reinsured in respect of insurance contracts.

23. Claims settled and remaining outstanding for a period of more than six months on
the balance sheet date.

24. The amount of dividends proposed to be distributed to equity and preference

shareholders for the period and the related amount per share shall be disclosed
separately. Arrears of fixed cumulative dividends on irredeemable preference shares
shall also be disclosed separately.

25. When a company applies an accounting policy retrospectively or makes a

restatement of items in the financial statements or when it reclassifies items in its
financial statements the company shall attach to the Balance Sheet a "Balance
Sheet" as at the beginning of the earliest comparative period shall be presented.

26. Share application money pending allotment shall be classified into equity or liability
in accordance with relevant Indian Accounting Standards. Share application money
to the extent not refundable shall be shown under the head Equity and share
application money to the extent refundable shall be separately shown under 'Other
financial liabilities'.

27. Preference shares including premium received on issue, shall be classified and
presented as 'Equity' or 'Liability' in accordance with the requirements of the
relevant Indian Accounting Standards. Accordingly, the disclosure and presentation
requirements in this regard applicable to the relevant class of equity or liability shall
be applicable mutatis mutandis to the preference shares. For instance, where
redeemable preference shares are classified and presented under ‘liabilities' as
'borrowings' the disclosure requirements in this regard applicable to borrowings
shall be applicable mutatis mutandi to such redeemable preference shares.

28. Compound financial instruments such as convertible debentures, where split into
equity and liability components, as per the requirements of the relevant Indian
Accounting Standards, shall be classified and presented under the relevant heads in
'Equity' and 'Liabilities'.

29. All liabilities related to investment contracts including those contracts having
insignificant insurance risk shall be disclosed in Note 13: Investment Contracts
Liabilities

30. The minimum assigned capital for a foreign reinsurer operating through a branch
office established in India in terms of Section 2 (9) (d) of the Act, shall be presented
as a separate component of equity under Statement of Changes in Equity. Any
contribution in excess of the minimum assigned capital shall be classified in
accordance with relevant Ind AS.

31. Actuarial assumptions in valuation of claims in case of general insurance business

 Part IV
STATEMENT OF PROFIT AND LOSS, REVENUE (POLICYHOLDERS') and PROFIT & LOSS
(SHAREHOLDERS') ACCOUNTS
Statement of Profit and Loss of .............. (Name of insurance company)
for the period ended ........
Note
Particulars No. Current Year Previous Year

Gross Earned Premium 32

Investment Income 33
Commission Received on Reinsurance Ceded 34
Net gain on fair value changes 35
Net gain on derecognition of financial assets at amortised cost
Recoveries from Reinsurers- Claims
Other Income 36
Total Income
Premium on Reinsurance Ceded
Gross Incurred Claims 37
Net change in insurance contract liabilities
Acquisition cost 38
Employee benefits 39
Impairment loss (including reversals) 40
Net losses on fair value changes 35
Net loss on derecognition of financial assets at amortised cost
Finance cost 41
Other expenses 42
Total Expenses

Profit / (Loss) before tax and Exceptional Items

Exceptional Items

Profit/ (Loss) before tax

Income tax Expense 43

Profit /(Loss) from continuing operations (A)

Profit /(Loss) from discontinued operations

Tax expense of discontinued operations

Profit/(loss) from discontinued operations (after tax) (B)

Profit/(loss) for the period

Other Comprehensive Income

1 (i) Items that will not be reclassified to profit or loss
(specify items and amounts)
(ii) ) Income tax relating to items that will not be reclassified
to profit or loss

Subtotal

2 (i) Items that will be reclassified to profit or loss (specify

items and amounts)
(ii) Income tax relating to items that will be reclassified to
profit or loss
Subtotal
Total Other Comprehensive Income (C)

Total Comprehensive Income (A+B+C)

Earnings per Equity Share (for continuing operations)

(1) Basic
(2) Diluted
Earnings per Equity Share (for discontinued operations)
(1) Basic
(2) Diluted
Earnings per Equity Share for profit/(loss) the period (for
discontinued and continuing operations)
(1) Basic
(2) Diluted
 STATEMENT OF PROFIT AND LOSS, REVENUE (POLICYHOLDERS') and PROFIT & LOSS
(SHAREHOLDERS') ACCOUNTS
For the period.....
Name of insurance company
Registration No. ....Date of Registration
Particulars Note Current Year Previous Year
No.
Revenue Profit & Loss Total as per Revenue Profit & Total as per
(Policyh (Shareholders) Statement of (Policyhol Loss Statement of
olders) Account Profit & Loss ders) (Shareholde Profit &
Account Account rs) Account Loss
Gross Earned Premium 32
Investment Income 33
Commission Received on Reinsurance Ceded 34
Net gain on fair value changes 35
Net gain on derecognition of financial assets at amortised cost
Recoveries from Reinsurers- Claims/
Other Income 36
Total Income
Premium on Reinsurance Ceded 32
Gross Incurred Claims 37
Net change in insurance contract liabilities
Acquisition cost 38
Employee benefits 39
Impairment loss (including reversals) 40
Net losses on fair value changes 35
Net loss on derecognition of financial assets at amortised cost
Finance cost 41
Other expenses 42
Total Expenses
Surplus (Deficit)/Profit (Loss) before Tax and Exceptional items
Exceptional Items
Surplus (Deficit)/Profit (Loss) before Tax
Income Tax Expense 43
Surplus (Deficit)/Profit (Loss) from continuing operations (A)

Surplus (Deficit)/Profit (Loss) from discontinued operations

Tax expense from discontinued operations

Surplus (Deficit)/Profit (Loss) from discontinued operations after Tax (B)

Surplus (Deficit)/Profit (Loss) for the period (C ) = (A) + (B)
Other Comprehensive Income
1 (i) Items that will not be reclassified to profit or loss (specify items and
amounts)
(ii) Income tax relating to items that will not be reclassified to profit or loss
Subtotal
2 (i) Items that will be reclassified to profit or loss (specify items and
amounts)
(ii) Income tax relating to items that will be reclassified to profit or loss
Subtotal
Total Other Comprehensive Income (D)
Total Comprehensive Income E= (C ) + (D)
Deficit Funding from Shareholders to Policyholders (F)
Transfer to Shareholders Account (G) = (E) + (F)
Notes to statement of profit and loss
Note 32 - Gross Earned Premium

Particulars Current Year Previous Year

Premium from direct business written
Premium on reinsurance accepted
Adjustment for change in reserve for unexpired risks
(+/-)
Total Gross Earned Premium(A)

Premium on reinsurance ceded

Reinsurance Premium ceded on direct business
Reinsurer’s share of reinsurance accepted
Reinsurer’s share of adjustment for change in reserve for
unexpired risks
Premium on reinsurance ceded (B)
Net earned premium (C) = (A)-
(B)

Gross Written Premium Current Year Previous Year

- In India
- Outside India
Total Gross Written Premium

Note 33 - Investment Income

Particulars Current Previous Year
Year
Rental Income from Investment
properties
Interest on financial assets classified
as:
Fair value through OCI
Amortised Cost
Dividend
Total Investment Income

Note 34 –Commission received on reinsurance ceded

Particulars Current Year Previous Year

Reinsurance commission on business ceded ( direct )

Reinsurance commission on business ceded (reinsurance
accepted )
Others

Total
Note 35- Net gain/(loss) on fair value changes *
Particulars Current Previous Year
Year
a) Investments classified atFair Value Through Profit or Loss
b) Investments designated at Fair Value Through Profit or Loss
c) Derivatives at Fair Value Through Profit or Loss
d) Other Financial Instruments classified as Fair Value Through Profit or Loss
e) Other Financial Instruments designated at Fair Value Through Profit or Loss
f) Reclassification adjustments
g) Realised gain on debt instruments classified as Fair Value Through OCI
h) Others (to be specified)
Total Net gain/(loss) on fair value changes (A)
Fair Value Changes
Realised
Unrealised
Total Net gain /(loss) on fair value changes (B) to tally with (A)
*Total Fair Value changes includes ..xxx (PY: Rs.xxx) interest received in respect of investments
classified/designated as Fair Value Through Profit or Loss.

Note 36 - Other Income

Particulars Current Year Previous Year
Net foreign exchange gain
Fee Income on Derivative and Guarantee
Contracts
Interest on Loans (other than those related to
investment income, covered in Note 31)
Others (to be specified)
Total Other Income

Note37 - Gross Incurred Claims

Particulars Current Year Previous Year
Gross Claims paid
Gross change in claims outstanding during the year
Gross Incurred Claims (A)
Recovery from reinsurers – claims
Reinsurer’s share in gross claims paid
Reinsurers share in change in claims outstanding
during the year
Recovery from reinsurers – claims (B)
Net Incurred Claims (C) = (A)-(B)
Note 38 - Acquisition cost
Current
Particulars Year Previous Year
Commission paid: Direct
Commission on Reinsurance Accepted
Medical & inspection expenses
Others (to be specified)
Acquisition Cost for Insurance Contracts

Note 39 - Employee benefits

Particulars Current Previous Year
Year
Salaries and wages including bonus
Post employment benefits
Employee Share Based Payments
Others
Total

Note 40 - Impairment loss (including reversals)

Particulars Current Year Previous Year

Impairment on
Financial assets
Investment Property
Property, plant & equipment
Goodwill
Other Intangible assets
Total Impairment Loss

Note 41 - Finance cost

Particulars Current Year Previous Year

Interest on financial liabilities measured at amortised cost

Dividend on redeemable preference shares treated as liability
Dividend distribution tax on redeemable preference shares treated
as liability
Others (to be specified)
Total Finance Cost
 Note 42 - Other Expenses

Particulars Current Year Previous Year

Travel & conveyance

Rent
Rates & taxes (excluding taxes on income)
Energy cost
Repairs & maintenance
Printing and stationery
Communication expenses
Legal and professional charges
Auditor’s fees for
audit of the financial statements
taxation matters
company law matters
other services
reimbursement of expenses
Advertisement and publicity
Bank charges
Depreciation & amortisation expenses
Net foreign exchange loss
Acquisition Cost for Financial Instruments
classified/designated as FVTPL
Miscellaneous expenses
Total Other Expenses

Note 43 - Income Tax Expense

Particulars Current Year Previous Year

Current Tax
Deferred Tax
Total Income Tax Expense

Additional disclosures in the notes

44. Basis of allocation and apportionment of expenses (other than Commission) to various classes
of insurance business.

45 Computation of managerial remuneration.

46 Extent of premium income recognised for general insurance business, based on varying risk
pattern, category wise, with basis and justification therefor, including whether reliance has
been placed on external evidence.
47 Apart from the requirement of reflecting the Revenue Account as required under clause 1 (c )
of Part I of Schedule B, the insurance entity shall also present segment information in
accordance with the Ind AS as applicable

48 Premium to be shown net of service tax collected from the policyholders.

49 Items of expense and income in excess of one percent of the total premium (less reinsurance) or
A 5 lakh whichever is higher shall be shown separately

Part V
OTHER DISCLOSURES

50. Percentage of business sector-wise (Rural Sector, Social Sector and Motor TP)

51. Details of various penal actions taken by various Government Authorities shall be disclosed as
may be prescribed by the Authority;

52. Unclaimed amounts of policyholders shall be disclosed as may be prescribed by the Authority;

53. A summary of financial statements for the last five years, in the manner as may be prescribed
by the Authority;

54. Accounting Ratios as may be prescribed by the Authority.