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Bajaj Allianz Life Insurance Com

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					Bajaj Allianz Life Insurance Company Limited
AUDITORS
S.R. BATLIBOI & CO.
Chartered Accountants
KIRTANE & PANDIT
Chartered Accountants


MAIN BANKERS
Standard Chartered Bank
Syndicate Bank
Deutsche Bank
UTI Bank


REGISTERED OFFICE
Bajaj Allianz Life Insurance Company Limited,
Ground Floor, G.E. Plaza, Airport Road,
Yerawada, Pune - 411 006.
Tel: (020) 6602 6777.
Fax: (020) 6602 6789.
email:life@bajajallianz.co.in
Visit us at: www.bajajallianzlife.co.in
                                                                                                            1




                                             INDEX
Directors’ Report ..................................................................................... 2

Board of Directors ................................................................................... 4

CEO Speak ............................................................................................ 6

Management Team ................................................................................... 8

Management Report ................................................................................ 10

Auditors’ Report .................................................................................... 12

Revenue Account : Policyholders’ Account (Technical Account) ............................... 14

Profit & Loss Account : Shareholders’ Account (Non Technical Account) .................... 19

Balance Sheet ........................................................................................ 20

Schedule 1-15 ........................................................................................ 22

Annexure to Revenue Account ..................................................................... 38

Notes to Financial Statements .................................................................... 42

Cash Flow Statement ............................................................................... 88

Balance Sheet abstract & Company’s general business profile ............................... 89
2




                                                                    DIRECTORS’ REPORT
                                                                    The Directors have pleasure in presenting their Sixth
                                                                    Annual Report & Audited Statements of Accounts for the
                                                                    year 2006- 2007




    1. MARKET SCENARIO IN THE LIFE INSURANCE INDUSTRY:                 The Agency channel largely contributed to the extra
                                                                       ordinary growth achieved by the Company. Strength of
       The life insurance market had an unbelievably high growth
                                                                       agents doubled in the year from 109,000 to 213,000.
       of 110% in the year under review measured in terms of
                                                                       The Company has the largest distribution network in
       new business. The industry as a whole wrote a first year
                                                                       the private sector and has its presence in 876 offices
       premium of Rs. 754 billion in the year 2006-07 compared
                                                                       across the country. Alternate channels have also picked
       to Rs. 359 billion in the previous year; a growth of 110
                                                                       up with a good performance of the corporate agents
       percent. Unexpectedly LIC contributed the lion’s share
                                                                       and other distribution networks. Our Bancassurance
       to this growth. After losing market share during each of
                                                                       channel has also performed well and has tied up with
       the last of 6 years, LIC bucked the past trend and during
                                                                       pan-India financial institutions, various Co-Operative
       2006-07, the new premium market share of LIC increased
                                                                       banks and Regional Rural Banks. The Company has
       from 71% in 2005-06 to 74% in 2006-07. Accordingly market
                                                                       successfully developed a comprehensive product range
       share of private players reduced from 29 to 26 percent.
                                                                       covering individual life and group business by introducing
       In the year forward, private players like your company
                                                                       a number of products during the year.
       are going to face even greater competition from each
       other, a resurgent LIC and many new entrants to the             Your Company has been monitoring its solvency margins,
       Life insurance business.                                        which have been maintained in accordance with IRDA
                                                                       requirements.
       Thus the market is growing by leaps and bounds but
       the competition is severe.                                      2.1 Capital:
       Unit- linked products continue to be the fancy of the               The Shareholders contributed Rs. 2,007 million to
       customers, largely on account of the booming stock                  the Company’s capital during the year. With this,
       market. Market structure is maturing towards higher                 the total funds infused by shareholders in the
       allocation and moderate commissions. Insurance                      Company amount to Rs. 7,005 million.
       Regulatory and Development Authority (IRDA) enforced
                                                                       2.2.IRDA Registration:
       a 3-year lock-in period for unit-linked products as well
       as Anti Money Laundering/ KYC procedures in the                     The Certificate of Registration from the IRDA to
       market through the year.                                            carry on the life insurance business has been
                                                                           renewed for the year 2007-08.

    2. SUMMARY OF OPERATIONS FOR THE YEAR:
                                                                    3. PARTICULARS REGARDING CONSERVATION OF ENERGY
       Your Company continues to be at the second position
                                                                       AND TECHNOLOGY ABSORPTION:
       amongst the private life insurers on the basis of new
       business premium and first position on the basis of the         Since the Company does not carry out any
       number of policies. It wrote new business of Rs. 42,698         manufacturing activity, the Companies (Disclosure of
       million compared to Rs. 27,168 million in the previous          Particulars in the report of the Board of Directors)
       year and registered a market share of 5.7% compared             Rules, 1988 are not applicable.
       to 7.6% in the previous year. The gross premium written
       for the financial year 2006-07 was Rs.53,100 million, as
       compared to Rs. 31,336 million in the previous year.         4. FOREIGN EXCHANGE EARNINGS AND EXPENDITURE:
       The Company has recorded a profit of Rs. 662 million
                                                                       Earnings in foreign currency           NIL
       during the financial year and is the highest profit making
       company in the private sector.                                  Expenditure in foreign currency        Rs. 30,135,414/-
                                                                                                                                3




5. PARTICULARS OF EMPLOYEES:                                          (iv) that the annual accounts have been prepared on a
                                                                           going concern basis.
    As required by the provisions of sub-section 2A of
    Section 217 of the Companies Act, 1956 read with the
    Companies (Particulars of Employees) as amended, the
                                                                   8. AUDIT COMMITTEE:
    names and other particulars of the employees are set
    out in the annexure to the Directors’ Report. However,            The Audit Committee of Board of Directors constituted
    as per the provisions of sub-section 1(b)(iv) of Section          in accordance with the provisions of Section 292A of
    219 of the Companies Act, 1956, the Report and                    the Companies Act, 1956 held their meetings on 5th May
    Accounts are being sent to the shareholders of the                2006 and 27 th November 2006 and reviewed the
    Company excluding the aforesaid information. Any                  operations and accounts of the Company.
    shareholder interested in obtaining such particulars
    may write to the Company Secretary at the Registered
    Office of the Company.                                         9. AUDITORS:
                                                                      In accordance with the IRDA Regulations/Guidelines,
                                                                      the Company appointed M/s. Kirtane & Pandit,
6. DIRECTORS:
                                                                      Chartered Accountants and M/s. S R Batliboi & Co,
    Mr. Rahul Bajaj, Mr. Sanjiv Bajaj and Mr. Heinz Dollberg          Chartered Accountants, as joint statutory auditors of
    retire by rotation and being eligible, offer themselves           the Company in the last Annual General Meeting. They
    for re-appointment as Directors.                                  hold office up to the conclusion of the Sixth Annual
                                                                      General Meeting of the Company.
                                                                      The shareholders are requested to appoint the auditors
7. DIRECTORS’ RESPONSIBILITY STATEMENT:
                                                                      for the period from the conclusion of the ensuing
    In accordance with the requirements of sub-section                Annual General Meeting till the conclusion of the next
    2AA of Section 217 of the Companies Act, 1956, the                Annual General Meeting and to fix their remuneration.
    Board of Directors wish to confirm the following:
    (i) that in preparation of the annual accounts, the
                                                                   10. APPRECIATION:
        applicable accounting standards have been
        followed along with proper explanation relating to            The Board is grateful to the IRDA and other regulatory
        material departures;                                          authorities for their continued support. The Board is
                                                                      also grateful to its Policyholders’, Bankers’,
    (ii) that such accounting policies have been selected
                                                                      Intermediaries’ and Channel Partners for their
         and applied consistently and made judgments and
                                                                      continued support.
         estimates that are reasonable and prudent so as
         to give a true and fair view of the state of affairs of      The Directors take this opportunity to thank the
         the Company as on 31st March 2007 and of the profit          concerned employees of Bajaj Auto Limited and Allianz
         or loss of the Company for that period;                      SE for their invaluable contribution in guiding the
                                                                      working of the Company.
    (iii) that proper and sufficient care has been taken for
          the maintenance of adequate accounting records              The Directors also take this opportunity to thank the
          in accordance with the provisions of the Act for            employees at all levels for their hard work, dedication
          safeguarding the assets of the Company and for              and commitment.
          preventing and detecting fraud and other
          irregularities;




                                                                                  On behalf of Board of Directors of
                                                                                  Bajaj Allianz Life Insurance Company Ltd.


Pune                                                                              Heinz Dollberg           Sanjiv Bajaj
11th May 2007                                                                     Director                 Director
4




    BOARD OF DIRECTORS




                  Dr. Werner Zedelius                  Heinz Dollberg
                  Director                             Director


    Rahul Bajaj                         Sanjay Asher
    Chairman                            Director




                                                       Craig Ellis
                                                       Director



                                        Sanjiv Bajaj
                                        Director
                                                                                  5




Ranjit Gupta                       Manu Tandon
Director                           Additional Director


               Suraj Mehta                               Bruce Bowers
               Director                                  (Alternate Director to
                                                         Dr. Werner Zedelius)




S. H. Khan
Director



               Dr. P. S. Palande
               Director
6




    CEO SPEAK


    Dear friends,

    Financial year 2006-07 was very satisfying as we crossed
    many milestones and set few records. The year has been a
    rewarding one for us on profitability as well as growth. I am
    pleased to announce that the Company has emerged as
    one of the leading private life insurance companies with a
    strong brand name and mutli-channel pan-India distribution
    network.

    Some of the key performance indicators are:

    •   The Company posted a healthy profit of Rs. 662 million
        as compared to a loss of Rs. 367 million in the previous
        year.

    •   The Gross Written Premiums grew to Rs. 53 billion showing
        a growth of 70% over the previous year.

    •   The Company sold over 2 million individual policies during
        the current year.

    •   The Company is the largest private life insurer in the
        country in terms of number of policies sold during the
        year and is ranked 2nd among private life insurers in terms
        of new business premium.

    •   Among the ‘Top 50 Service Brands’ in Brand Equity, as
        per survey conducted by AC Neilson ORG-MARG.
                                                               7




A significant portion of current year’s new business premium
– 72% came from regular premium policies as compared to
45% in the previous year. This change of strategy to
concentrate on regular premium will result in a steady
renewal premium stream and help in stabilizing the long-
term future of the Company.

Our strength lies in a wide distribution network comprising
of 876 offices all across the country supported by one of
the largest network of individual agents, corporate agents,
brokers and bancasssurance partners.

The Company plans to further develop its distribution
network in the coming financial year and lay stress on
product development so that new generation products can
be launched on an ongoing basis. Continuous upgradation
of information technology systems and back office
processes will ensure maintaining and improving the quality
of services to the customers.

We see huge opportunities lying ahead and I am confident
that my team is prepared to capture all this so that we
maintain and increase the lead and create a stronger brand
name across the country.

I thank all our policyholders, business partners and
employees for their continued support and look forward
to further strengthen our relationship.



Warm regards


Sam Ghosh
8




    MANAGEMENT TEAM




                              Rajesh Viswanathan                                   Malay Ghosh
                              Chief Financial Officer                              Head of Sales


    Sam Ghosh                                           Anil Singh
    Chief Executive Officer                             Chief Actuary




                              Andrew Wakeling                                      Niraj Kumar
                              Appointed Actuary                                    Head Alternate Channels



                                                        G. B. Laddha
                                                        Chief Investment Officer
                                                                                                      9




ECJ Augustine                                     J. B. Bhaskar
Head Strategic Initiatives,                       Head Information Technology
Zonal Head Sales (South) &
Head Product Lines
                              Saji George                                       Sameer Bakshi
                              Head Operations &                                 Company Secretary &
                              Administration                                    Compliance Officer




A.S. Narayanan                                    Neeraj Jain
Head Bancassurance                                Head Internal Audit



                              Sanjay Jain
                              Head Marketing
10




     MANAGEMENT REPORT




     With respect to the operations of Bajaj Allianz Life Insurance      The Investment Policy is formulated by the Investment
     Company Limited (‘the Company’) for the financial year              Committee and approved by the Board of Directors.
     1 April 2006 to 31 March 2007 and results thereof, the              The investment policy is reviewed at least once a year
     Management of the Company confirms and declares that:               for alignment with the Company’s latest business plan
                                                                         and other developments during the year.
     1. The registration certificate granted by Insurance
        Regulatory and Development Authority (IRDA) is valid and      9. The Company does not have operations in any other
        the same has been renewed for the year 2007-2008.                country.
     2. All relevant statutory dues payable by the Company have       10. Claim settlement time for the claims lodged has been
        been generally deposited on time.                                 around 7 days from the date of receipt of complete
                                                                          requirements. Ageing of claims indicating the trends in
     3. There has been no transfer of shares during the year
                                                                          average claim settlement time is given below.
        and the shareholding pattern is in accordance with the
        statutory and regulatory requirement.
                                                                                Year             Days
     4. The management has not directly or indirectly invested
                                                                               2006-07             7
        outside India, the funds of the holders of policies issued
        in India.                                                              2005-06             7

     5. The required solvency margins have been maintained as                  2004-05             3
        required by the IRDA.                                                  2003-04             3
     6. We certify that the values of all the assets have been                 2002-03             5
        reviewed on the date of Balance Sheet and in the
        management’s belief, the assets set forth under each          11. We certify that the values, as shown in the Balance
        of the headings in the Balance Sheet are shown in the             Sheet, of the investments (other than unit linked
        aggregate at amounts not exceeding their realizable or            investments), which consists of fixed income securities,
        market value under their related headings - “Loans”,              equity shares and mutual fund units that have been
        “Investments”, “Agents balances”, “Outstanding                    valued as per accounting policies prescribed by IRDA.
        Premiums”, “Income accrued on investments”, “Amounts              Market values have been ascertained for equities on
        due from other entities carrying on insurance business            the basis of lower of the closing prices as on the balance
        (including amounts due from reinsurers)”, “Cash” and              sheet date on The National Stock Exchange of India
        the several items specified under “Other Accounts”.               Ltd. and The Stock Exchange, Mumbai. For fixed income
        Market value of investment in debt securities (other              securities, valuation is based on procedure issued by
        than unit linked funds) which are valued at amortized             Fixed Income and Money Market and Derivative Dealers
        cost as per IRDA regulations, is lower than their carrying        Association (FIMMDA). The investments in the Mutual
        amount.                                                           Funds are valued at the Net Asset Values (NAV) of these
                                                                          Mutual funds as on the Balance Sheet date.
     7. We certify that, no part of the life insurance fund has
        been directly or indirectly applied in contravention of          We certify that the unit linked investments have been
        the Insurance Act, 1938 (4 of 1938) relating to the              valued on the basis as stated below:
        application and investment of the life insurance fund.           Equities have been valued at market values which have
     8. The Company recognizes the risks associated with the             been ascertained on the basis of the last quoted closing
        life insurance business and manages the risks by adopting        price on the NSE. In case the equity shares are not
        prudent policies to counter the key risks of the Company         listed on the NSE, then they are valued on the last
        – namely underwriting and investment risks.                      quoted closing price on BSE. Government securities are
                                                                         valued at prices obtained from Credit Rating Information
        The Company has established robust underwriting
                                                                         Services of India Ltd. (CRISIL). Corporate bonds and
        procedures to mitigate underwriting risks. Additionally
                                                                         debentures are valued on the basis of CRISIL Bond Valuer.
        the Company has entered into reinsurance arrangements
                                                                         Treasury bills, certificate of deposits and commercial
        wherein it reinsures risk in excess of its retention limits
                                                                         papers are valued at cost plus accretion at yield to
        to mitigate its risk exposure.
                                                                         maturity. Mutual fund units have been valued at the
        The investment risk is managed by laying down                    last available Net Asset Value declared by the respective
        appropriate guidelines in the Investment Policy.                 mutual fund.
                                                                                                                                  11




12. The Company has invested (other than unit linked funds)             Shareholders’ Account (Non Technical Account) of
    mainly in approved Government securities and AAA or                 the Company for the year;
    AA+ rated bonds. The primary aim while investing is to
                                                                    c) The management has taken proper and sufficient
    generate adequate return while minimizing risk. The
                                                                       care for the maintenance of adequate accounting
    emphasis is also on the liquidity of investments to ensure
                                                                       records in accordance with the applicable provisions
    that the Company meets all outgoings related to claims
                                                                       of the Insurance Act, 1938 (4 of 1938) and Companies
    and other operations. While most of the investments
                                                                       Act, 1956 (1 of 1956), for safeguarding the assets of
    are in fixed income securities in the form of Government
                                                                       the Company and for preventing and detecting fraud
    of India securities or Corporate Bonds with strong credit
                                                                       and other irregularities;
    rating, a small portion is also invested in Equity shares.
    Based on the past track record, the Management is               d) The financial statements have been prepared on a
    confident of the quality and performance of the                    going concern basis;
    investments.
                                                                    e) The Company has an internal audit system
13. The Management of Bajaj Allianz Life Insurance Company             commensurate with the size of the Company and
    Limited certifies that:                                            nature of the business.

   a) The financial statements of Bajaj Allianz Life Insurance   14. The following are the payments made to individuals, firms,
      Company Limited have been prepared in accordance               companies and organizations in which the directors of
      with the applicable accounting standards and                   the insurer are interested:
      principles and policies with no departures;
                                                                      Name of the Company in                   Amount
   b) The management has adopted accounting policies
                                                                      which directors are                   of Payments
      and applied them consistently and made judgments
                                                                      interested                             (in Rs’000)
      and estimates that are reasonable and prudent so
      as to give a true and fair view of the state of the             Bajaj Auto Ltd.                           359,073
      affairs of the Company at the end of the financial              Bajaj Auto Finance Ltd.                    138
      year and of the operating profit as per Policyholders’
      Account (Technical Account) and of the Loss as per




For Bajaj Allianz Life Insurance Company Limited

Heinz Dollberg                      Sanjiv Bajaj                  Craig Ellis                    Ranjit Gupta
Director                            Director                      Director                       Director

Sam Ghosh                           Rajesh Viswanathan            Andrew Wakeling                Sameer Bakshi
Chief Executive Officer             Chief Financial Officer       Appointed Actuary              Company Secretary

Place: Pune
Date: 11th May 2007
12




     AUDITORS’ REPORT
     To

     The Members of Bajaj Allianz Life Insurance Company Limited




     We have audited the attached Balance Sheet of Bajaj Allianz    •   The Balance Sheet, the Policyholders’ Revenue Account,
     Life Insurance Company Limited (‘the Company’) as at               the Shareholders’ Profit and Loss Account and the
     31 March 2007, and the related Policyholders’ Revenue              Receipts and Payments Account referred to in this report
     Account, the Shareholders’ Profit and Loss Account and             are in agreement with the books of account;
     the Receipts and Payments Account for the year ended on
                                                                    •   The actuarial valuation of liabilities for life policies in
     that date, annexed thereto.
                                                                        force is the responsibility of the Company’s Appointed
     These financial statements are the responsibility of the           Actuary (‘the Appointed Actuary’). The actuarial valuation
     management of the Company. Our responsibility is to express        of liabilities for policies in force as at 31 March 2007 has
     an opinion on these financial statements based on our audit.       been duly certified by the Appointed Actuary. The
                                                                        Appointed Actuary has also certified that, in his opinion,
     We conducted our audit in accordance with auditing
                                                                        the assumptions for such valuation are in accordance
     standards generally accepted in India. These standards
                                                                        with the guidelines and norms, if any, issued by the
     require that we plan and perform the audit to obtain
                                                                        Insurance Regulatory and Development Authority (‘IRDA’)
     reasonable assurance as to whether the financial statements
                                                                        and the Actuarial Society of India in concurrence with
     are free of material misstatement. An audit includes
                                                                        the authority. We have relied upon the Appointed
     examining on a test basis, evidence supporting the amounts
                                                                        Actuary’s certificate in this regard in forming our
     and disclosures in the financial statements. An audit also
                                                                        opinion.
     includes assessing the accounting principles used and
     significant estimates made by management, as well as           •   On the basis of the written representations received
     evaluating the overall financial statement presentation. We        from the Directors of the Company, as on 31 March
     believe that our audit provides a reasonable basis for our         2007 and taken on record by the Board of Directors, no
     opinion.                                                           Director of the Company is disqualified as on 31 March
                                                                        2007 from being appointed as Director under clause (g)
     The Balance Sheet, the Policyholders’ Revenue Account,
                                                                        of sub section (1) of Section 274 to the Companies Act,
     the Shareholders’ Profit and Loss Account and the Receipts
                                                                        1956.
     and Payments Account have been drawn up in accordance
     with the Insurance Act, 1938 (Act 4 of 1938), Insurance        In our opinion and to the best of our information and
     Regulatory and Development Act, 1999, Insurance Regulatory     according to the explanations given to us, we further report
     and Development Authority (Preparation of Financial            that:
     Statements and Auditor’s Report of Insurance Companies)
                                                                    •   Investments have been valued in accordance with the
     Regulations 2002 (‘the Regulations’) read with Section 211
                                                                        provisions of the Insurance Act, 1938 and the Regulations
     of the Companies Act, 1956.
                                                                        or orders / directions issued by IRDA in this behalf;
     As required by the Regulations, we set out in the Annexure,
                                                                    •   The accounting policies selected by the Company are
     a statement certifying the matters specified in paragraph 4
                                                                        appropriate and are in compliance with applicable
     of Schedule C to the Regulations.
                                                                        accounting standards and with accounting principles,
     Further to our comments in the Annexure referred to above,         as prescribed in the Regulations and orders or directions
     we report that:                                                    issued by IRDA in this behalf;
     •    We have obtained all the information and explanations     •   The Balance Sheet, the Policyholders’ Revenue Account,
          which, to the best of our knowledge and belief were           the Shareholders’ Profit and Loss Account and the
          necessary for the purposes of the audit and have found        Receipts and Payments Account referred to in this report
          them to be satisfactory;                                      are in compliance with the accounting standards
                                                                        referred to in Section 211 (3C) of the Companies Act,
     •    In our opinion and to the best of our information and
                                                                        1956; and
          according to the explanations given to us, proper books
          of account as required by law have been maintained by     •   The Balance Sheet, the Policyholders’ Revenue Account,
          the Company so far as appears from our examination of         the Shareholders’ Profit and Loss Account and the
          those books;                                                  Receipts and Payments Account together with the notes
                                                                        thereon and attached thereto are prepared in
     •    As the Company’s accounting system is centralised at
                                                                        accordance with the requirements of the Regulations,
          the head office, no returns for the purposes of our
                                                                        the Insurance Act, 1938, the Insurance Regulatory and
          audit are prepared at the branches and other offices
                                                                        Development Act, 1999 and the Companies Act, 1956, to
          of the Company;
                                                                                                                                   13




    the extent applicable and in the manner so required            explanations given to us and to the best of our knowledge
    and give a true and fair view in conformity with               and belief, we certify that:
    accounting principles generally accepted in India as
                                                                   •   We have reviewed the management report attached to
    applicable to insurance companies:
                                                                       the financial statements for the year ended 31st March
    (i) in the case of the Balance Sheet, of the state of              2007, and there is no apparent mistake or material
        affairs of the Company as at 31 March 2007;
                                                                       inconsistencies with the financial statements; and
    (ii) in the case of the Policyholders’ Revenue Account,
         of the surplus for the year ended 31 March 2007;          •   Based on information and explanations received during
                                                                       the normal course of our audit, management’s
    (iii) in the case of the Shareholders’ Profit and Loss
                                                                       representations made to us and the compliance
          Account, of the loss for the year ended 31 March
                                                                       certificate submitted to the Board by the officers of
          2007; and
                                                                       the Company charged with compliance and the same
    (iv) in the case of the Receipts and Payments Account,
                                                                       being noted by the Board, nothing has come to our
         of the receipts and payments for the year ended
                                                                       attention which causes us to believe that the Company
         31 March 2007.
                                                                       has not complied with the terms and conditions of
Further, on the basis of examination of books and records              registration as per subsection 4 of section 3 of the
of the Company and according to the information and                    Insurance Act, 1938.




                                          KIRTANE & PANDIT                           S.R. BATLIBOI & CO.
                                          Chartered Accountants                      Chartered Accountants

                                          Suhas Deshpande                            per Hemal Shah
11th May 2007                             Partner                                    Partner
Pune                                      Membership No. 31787                       Membership No. 42650




Annexure to the Auditors Report
(Referred to in the Auditors’ Report to the members of Bajaj Allianz Life Insurance Company Limited (‘the Company’) on the
accounts for the year ended 31 March 2007)


Auditor’s Certificate
To the Members of Bajaj Allianz Life Insurance Company Limited
Based on the information and explanations given to us and to the best of our knowledge and belief, we certify that:
•   We have verified the cash balances, to the extent considered necessary, securities relating to the Company’s loans and
    investments by actual inspection or on the basis of certificates / confirmations received from custodians and / or
    Depository Participants appointed by the Company, as the case may be. At 31st March 2007, none of the Company’s assets
    involve reversion or life interests;
•   The Company is not the trustee of any trust; and
•   No part of the assets of the policyholders’ funds has been directly or indirectly applied in contravention to the provisions
    of the Insurance Act, 1938 relating to the application and investments of the policyholders funds.
•   This certificate is issued to comply with the requirements of Schedule ‘C’ of Insurance Regulatory and Development
    Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002
    (‘the Accounting Regulations’) read with Regulation 3 of the Accounting Regulations and may not be suitable for any
    other purpose.




                                          KIRTANE & PANDIT                           S.R. BATLIBOI & CO.
                                          Chartered Accountants                      Chartered Accountants

                                          Suhas Deshpande                            per Hemal Shah
11th May 2007                             Partner                                    Partner
Pune                                      Membership No. 31787                       Membership No. 42650
14




     Revenue Account for the year ended 31st March 2007
     Policyholders’ Account (Technical Account)
     Particulars                                                             Schedule   Current Year        Participating
                                                                                               Total    Individual          Individual
                                                                                                       Assurance              Pension
     PREMIUMS EARNED - Net
     (a) Premium                                                                1        53,099,971     3,535,562              67,680
     (b) Reinsurance ceded (Refer Schedule 16 Note 15)                                      (92,595)      (36,049)              (739)
     (c) Reinsurance accepted                                                                      -             -                  -
                                         SUB-TOTAL                                       53,007,376     3,499,513              66,941
     INCOME FROM INVESTMENTS
     (a) Interest, Dividend & Rent - Gross                                                 1,153,316     336,827               12,774
     (b) Profit on sale / redemption of investments                                        3,714,626       36,147                   -
     (c) (Loss on sale / redemption of investments)                                      (1,055,011)     (23,282)                   -
     (d) Transfer/Gain on revaluation/ change in fair value                              (1,036,646)            -                   -
     (e) Other investment income                                                             320,536            -                   -
                                                                                          3,096,821       349,692              12,774
     OTHER INCOME
     Interest on Overdue Premium                                                             17,930        17,640                 225
     Unit Linked Fund Administration / Management Charges, etc.                             352,451             -                   -
     (Refer Schedule 16 Note 23)
     Others                                                                                  34,309         5,115                 114
     Contribution from the Shareholders’ account                                            972,355             -                   -
     (Refer Schedule 16 Note 14)
                                         SUB-TOTAL                                        4,473,866       372,447              13,113

                                         TOTAL (A)                                       57,481,242     3,871,960              80,054
     COMMISSION                                                                 2         9,466,813       424,943               1,472
     OPERATING EXPENSES RELATED TO INSURANCE BUSINESS                           3        10,730,189       895,903              10,855
     Provision for doubtful debts                                                                 -             -                   -
     Bad Debts written off                                                                        -             -                   -
     Provision for Fringe Benefit Tax                                                        73,054         6,174                  75
     Provisions (other than taxation)                                                             -             -                   -
     (a) For diminution in the value of investments (net)                                         -             -                   -
     (b) Others                                                                                   -             -                   -
                                         TOTAL (B)                                       20,270,056     1,327,020              12,402
     BENEFIT PAID (Net)                                                         4         6,985,351       303,276               1,338
     Interim Bonuses Paid (Refer Schedule 16 Note 1(n))                                       1,996         1,996                   -
     Change in valuation of liability in respect of life policies
     in force (Refer Schedule 16 Note 1 (e) and Note 8 )
     (a) Gross                                                                            2,669,859     2,156,995              60,944
     (b) Fund Reserve (Refer Schedule 16 Note 1(e))                                      26,175,201             -                   -
     (c) Amount ceded in Reinsurance                                                              -             -                   -
     (d) Amount accepted in Reinsurance                                                           -             -                   -
                                         TOTAL (C)                                       35,832,407     2,462,267              62,282

     SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)                                            1,378,779        82,673               5,370
     Balance of previous year                                                               564,521       532,747                   -
     APPROPRIATIONS
     Reserve for lapsed unit linked policies unlikely to be revived                       1,241,074              -                   -
     (Refer Schedule 16 Note 1(e) and Note 8)
     Transfer to Shareholders’ account                                                       31,303        30,316                 987
     Balance being funds for future appropriations                                          670,923       585,104               4,383
     DETAILS OF TOTAL SURPLUS
     Interim Bonuses Paid (a)                                                                 1,996         1,996                   -
     Allocation of Bonus to policyholders (b)                                               281,728       272,843               8,885
     Surplus shown in the Revenue Account (c)                                             1,378,779        82,673               5,370

                                         Total Surplus [ (a) + (b) + (c) ]                1,662,503       357,512              14,255
                                                                                                                   15




                                                                                           (Amount in Rs. ‘000 )
              Non Participating                                       Linked
 Individual           Individual       Group     Individual   Individual   Group Super-               Group
Assurance               Annuity    Assurance    Assurance       Pension       annuation             Gratuity

   100,453               19,497       313,098   46,923,250    1,751,665          68,134              320,632
    (1,707)                   -      (10,289)      (43,746)         (65)              -                    -
          -                   -             -             -            -              -                    -
    98,746               19,497      302,809    46,879,504    1,751,600          68,134              320,632


    10,039                3,046       15,552        734,278      28,308            2,502               9,990
         -                    -            63     3,489,836     187,776              153                 651
     (143)                    -          (14)     (969,045)    (56,819)          (1,088)             (4,620)
         -                    -             -   (1,003,416)    (36,802)              681               2,891
         -                    -             -       302,927      16,087              290               1,232
     9,896                3,046       15,601     2,554,580      138,550           2,538               10,144


        65                     -            -            -            -               -                    -
         -                     -            -      333,400       19,031               4                   16

        71                    2           26        28,074          874               6                   27
         -                    -            -       863,308      101,265           1,007                6,775

    10,032                3,048       15,627     3,779,362      259,720           3,555               16,962

   108,778               22,545      318,436    50,658,866    2,011,320          71,689              337,594
    11,407                  246       14,733     8,944,424       69,526              24                   38
    21,685                  552        8,930     9,534,019      246,486           2,110                9,649
         -                    -            -             -            -               -                    -
         -                    -            -             -            -               -                    -
       148                    4           61        64,822        1,690              13                   67
         -                    -            -             -            -               -                    -
         -                    -            -             -            -               -                    -
         -                    -            -             -            -               -                    -
    33,240                  802       23,724    18,543,265      317,702           2,147                9,754
    12,490                1,546      203,496     6,141,074      286,140          14,100               21,891
         -                    -            -             -            -               -                    -


    39,524               13,178       71,425       310,562       17,432             (57)               (144)
         -                    -            -    24,422,891    1,390,046          56,171              306,093
         -                    -            -             -            -                -                   -
         -                    -            -             -            -                -                   -
    52,014               14,724      274,921    30,874,527    1,693,618          70,214              327,840

    23,524                7,019       19,791     1,241,074             -          (672)                    -
    27,437                    -        3,665             -             -            672                    -


          -                    -            -    1,241,074             -               -                   -

          -                    -            -             -            -               -                   -
    50,961                7,019       23,456              -            -               -                   -


         -                    -            -             -             -              -                    -
         -                    -            -             -             -              -                    -
    23,524                7,019       19,791     1,241,074             -          (672)                    -

    23,524                7,019       19,791     1,241,074             -          (672)                    -
16




     Revenue Account for the year ended 31st March 2007
     Policyholders’ Account (Technical Account)
     Particulars                                                      Schedule   Previous Year         Participating
                                                                                         Total     Individual          Individual
                                                                                                  Assurance              Pension
     PREMIUMS EARNED - Net
     (a) Premium                                                         1          31,335,778     3,288,070              67,521
     (b) Reinsurance ceded (Refer Schedule 16 Note 15)                                 (53,565)      (27,773)              (570)
     (c) Reinsurance accepted                                                                 -             -                  -
                                         SUB-TOTAL                                  31,282,213     3,260,297              66,951
     INCOME FROM INVESTMENTS
     (a) Interest, Dividend & Rent - Gross                                             211,084       186,494               6,225
     (b) Profit on sale / redemption of investments                                    106,640       106,623                   6
     (c) (Loss on sale / redemption of investments)                                     (5,307)       (5,307)                  -
     (d) Transfer/Gain on revaluation/ change in fair value              -                    -             -                  -
     (e) Other investment income                                                              -             -                  -
                                                                                       312,417       287,810               6,231
     OTHER INCOME
     Interest on Overdue Premium                                                        12,808        12,552                  30
     Unit Linked Fund Administration / Management Charges, etc.                        218,070             -                   -
     (Refer Schedule 16 Note 23)
     Others                                                                             59,354        19,301                 533
     Contribution from the Shareholders’ account                                     1,085,539             -               2,748
     (Refer Schedule 16 Note 14)
                                         SUB-TOTAL                                   1,688,188       319,663               9,542

                                         TOTAL (A)                                  32,970,401     3,579,960              76,493
     COMMISSION                                                          2           3,418,670       511,174               1,635
     OPERATING EXPENSES RELATED TO INSURANCE BUSINESS                    3           4,868,110     1,053,774              11,965
     Provision for doubtful debts                                                            -             -                   -
     Bad Debts written off                                                                   -             -                   -
     Provision for Fringe Benefit Tax                                                   41,020         8,935                 103
     Provisions (other than taxation)
     (a) For diminution in the value of investments (net)                                     -             -                   -
     (b) Others                                                                               -             -                   -
                                         TOTAL (B)                                   8,327,800     1,573,883              13,703
     BENEFIT PAID (Net)                                                  4           6,534,838       111,899                 716
     Interim Bonuses Paid (Refer Schedule 16 Note 1(n))                                  1,210         1,161                  49
     Change in valuation of liability in respect of life policies
     in force (Refer Schedule 16 Note 1 (e) and Note 8 )
     (a) Gross                                                                       1,912,292     1,405,336              62,506
     (b) Fund Reserve (Refer Schedule 16 Note 1(e))                                 15,576,070             -                   -
     (c) Amount ceded in Reinsurance                                                         -             -                   -
     (d) Amount accepted in Reinsurance                                                      -             -                   -
                                         TOTAL (C)                                  24,024,410     1,518,396              63,271

     SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)                                         618,191       487,681               (481)
     Balance of previous year                                                           64,069        45,066                 481
     APPROPRIATIONS
     Reserve for lapsed unit linked policies unlikely to be revived                    117,739              -                   -
     (Refer Schedule 16 Note 1(e) and Note 8)
     Transfer to Shareholders’ account                                                        -             -                   -
     Balance being funds for future appropriations                                     564,521       532,747                    -
     DETAILS OF TOTAL SURPLUS
     Interim Bonuses Paid (a)                                                            1,210         1,161                  49
     Allocation of Bonus to policyholders (b)                                          217,860       210,140               7,720
     Surplus shown in the Revenue Account (c)                                          618,191       487,681               (481)

     Total Surplus [ (a) + (b) + (c) ]                                                 837,261       698,982               7,288
                                                                                                                  17




                                                                                          (Amount in Rs. ‘000 )
              Non Participating                                       Linked
 Individual           Individual       Group     Individual   Individual   Group Super-              Group
Assurance               Annuity    Assurance    Assurance       Pension       annuation            Gratuity

   115,793               18,143      160,853    26,769,800      787,609          37,954              90,035
     (208)                  (33)      (3,243)      (21,463)       (275)               -                   -
         -                     -            -             -           -               -                   -
   115,585               18,110      157,610    26,748,337      787,334          37,954              90,035


     4,467                  803        1,343        11,487          222              28                  15
        11                    -            -             -            -               -                   -
         -                    -            -             -            -               -                   -
         -                    -            -             -            -               -                   -
         -                    -            -             -            -               -                   -
     4,478                  803        1,343        11,487          222              28                  15


        60                  166             -            -            -               -                   -
         -                    -             -      207,031        9,762             888                 389

       149                    4           34        37,438        1,862               8                  25
         -                8,584            -     1,006,762       64,709             929               1,807

     4,687                9,557        1,377     1,262,718       76,555           1,853               2,236

   120,272               27,667      158,987    28,011,055      863,889          39,807              92,271
    14,496                  197        3,988     2,848,592       38,491              62                  35
    21,407                  485        4,878     3,656,303      115,487             953               2,858
         -                    -            -             -            -               -                   -
         -                    -            -             -            -               -                   -
       180                    4           41        30,740          984               8                  25

          -                    -            -             -            -              -                   -
          -                    -            -             -            -              -                   -
    36,083                  686        8,907     6,535,635      154,962           1,023               2,918
     4,865                  515       41,738     6,275,572       71,361           7,413              20,759
         -                    -            -             -            -               -                   -


    65,274               26,740      109,538       239,837        2,919              44                  98
         -                    -            -    14,842,272      634,647          30,655              68,496
         -                    -            -             -            -               -                   -
         -                    -            -             -            -               -                   -
    70,139               27,255      151,276    21,357,681      708,927          38,112              89,353

    14,050                (274)       (1,196)      117,739             -            672                   -
    13,387                  274         4,861            -             -              -                   -


          -                    -            -      117,739             -              -                   -

          -                    -            -             -            -              -                   -
    27,437                     -       3,665              -            -            672                   -


         -                    -             -            -             -              -                   -
         -                    -             -            -             -              -                   -
    14,050                (274)       (1,196)      117,739             -            672                   -

    14,050                (274)       (1,196)      117,739             -            672                   -
18




     Revenue Account for the year ended 31st March 2007
     Policyholders’ Account (Technical Account)

     Notes to Financial statements                               16
     As required by Section 40-B of the Insurance Act, 1938, we certify that all expenses of Management in respect of Life
     Insurance business transacted in India by the Company have been fully debited to the Policyholders’ Revenue Account as
     expenses.
     The accompanying notes and schedules form an integral part of the financial statements.
     As per our report of even date attached


     For Kirtane & Pandit            For S. R. Batliboi & Co.      For Bajaj Allianz Life Insurance Company Limited
     Chartered Accountants           Chartered Accountants

     Suhas Deshpande                 Hemal Shah                    Heinz Dollberg                  Sanjiv Bajaj
     Partner                         Partner                       Director                        Director
     Membership No. 31787            Membership No. 42650
                                                                   Craig Ellis                     Ranjit Gupta
                                                                   Director                        Director

                                                                   Sam Ghosh                       Rajesh Viswanathan
                                                                   Chief Executive Officer         Chief Financial Officer

                                                                   Andrew Wakeling                 Sameer Bakshi
                                                                   Appointed Actuary               Company Secretary


     Place : Pune                                                  Place : Pune
     Date : 11th May 2007                                          Date : 11th May 2007
                                                                                                                                                     19




Form A- PL
Profit & Loss account for the year ended 31st March 2007
Shareholders’ Account (Non Technical Account)
                                                                                                                           (Amount in Rs. ‘000)
Particulars                                                                       Current            Current         Previous          Previous
                                                                                     Year               Year             Year              Year

Amounts transferred from the                                                                          31,303                                     -
Policyholders’ Account (Technical Account)
INCOME FROM INVESTMENTS
(a) Interest, Dividends & Rent - Gross                                                               273,062                           113,589
(b) Profit on sale / redemption of investments                                                         23,824                             7,236
(c) (Loss on sale / redemption of investments)                                                       (19,763)                          (13,946)
(d) Transfer/Gain on revaluation / change in fair value                                                     -                                 -
OTHER INCOME                                                                                                 -                                   -

                        TOTAL(A)                                                                     277,123                            106,879

Expenses other than those directly related to the
insurance business (Refer Schedule 16 Note 11)
Preliminary Expenses written-off                                                                           -                                3,180
Others                                                                                                53,077                                3,566
Provisions (Other than Taxation)                                                                           -                                    -
Contribution to the Policyholders’ Fund
(Refer Schedule 16 Note 14)
    Participating
           Individual Assurance                                                            -                                -
           Individual Pension                                                              -                            2,748
    Non Participating
           Individual Assurance                                                            -                                -
           Individual Annuity                                                              -                            8,584
           Group Assurance                                                                 -                                -
    Linked
           Individual Assurance                                                  863,308                             1,006,762
           Individual Pension                                                    101,265                                64,709
           Group Superannuation                                                    1,007                                   929
           Group Gratuity                                                          6,775             972,355             1,807        1,085,539

                        TOTAL(B)                                                                1,025,432                             1,092,285

PROFIT / (LOSS) before Tax                                                                          (717,006)                         (985,406)
Provision for Taxation including Wealth Tax                                                                27                                  36

PROFIT / (LOSS) after Tax                                                                           (717,033)                         (985,442)
Balance at the beginning of the year                                                           (2,043,096)                          (1,057,654)

PROFIT/(LOSS) CARRIED FORWARD TO BALANCE SHEET                                                 (2,760,129)                          (2,043,096)
Earning Per Share (Basic & Diluted) (Refer Schedule 16 Note 17)                                        (4.77)                               (6.56)


Notes to Financial statements                                      16
The accompanying notes and schedules form an integral part of the financial statements.
As per our report of even date attached
For Kirtane & Pandit    For S. R. Batliboi & Co. For Bajaj Allianz Life Insurance Company Limited
Chartered Accountants   Chartered Accountants

Suhas Deshpande         Hemal Shah              Heinz Dollberg            Sanjiv Bajaj                 Craig Ellis               Ranjit Gupta
Partner                 Partner                 Director                  Director                     Director                  Director
Membership No. 31787    Membership No. 42650

Place : Pune                                    Sam Ghosh                 Rajesh Viswanathan           Andrew Wakeling           Sameer Bakshi
Date : 11th May 2007                            Chief Executive Officer   Chief Financial Officer      Appointed Actuary         Company Secretary
20




     Form A- BS
     Balance sheet as at 31st March 2007
                                                                                              (Amount in Rs. ‘000)
     Particulars                                     Schedule      Current      Current   Previous     Previous
                                                                      Year         Year       Year         Year

     SOURCES OF FUNDS
     SHAREHOLDERS’ FUNDS
     Share Capital                                      5                     1,503,680                1,502,338
     Reserves and Surplus                               6                     5,501,600                3,495,310
     Credit/(Debit) Fair Value Change Account                                        85                      711

                          SUB TOTAL                                           7,005,365                4,998,359

     BORROWINGS                                         7                             -                        -

     POLICYHOLDERS’ FUNDS
     Credit/(Debit) Fair Value Change Account                                   15,443                   12,988
     Policy Liabilities (Refer Schedule 16 Note 8)
         Participating
                Individual Assurance                             5,493,958                3,336,963
                Individual Pension                                 211,463                  150,520
         Non Participating
                Individual Assurance                              154,036                  114,511
                Individual Annuity                                 43,243                   30,065
                Group Assurance                                   198,175                  126,751
         Linked
                Individual Assurance                              591,016                  280,453
                Individual Pension                                 21,015                    3,583
                Group Superannuation                                    -                       57
                Group Gratuity                                          -     6,712,906        144     4,043,047
     Insurance Reserves                                                               -                        -
     Provision For Linked Liabilities
        Linked Liabilities                                      48,845,768
        Fair Value Change                                        3,022,633 51,868,401                 25,693,200

                          SUB TOTAL                                          58,596,750               29,749,235

     FUNDS FOR FUTURE APPROPRIATIONS
        Participating
               Individual Assurance                               585,104                  532,747
               Individual Pension                                   4,383                        -
        Non Participating
               Individual Assurance                                50,961                   27,437
               Individual Annuity                                   7,019                        -
               Group Assurance                                     23,456                    3,665
        Linked
               Individual Assurance                                      -                       -
               Individual Pension                                        -                       -
               Group Superannuation                                      -                     672
               Group Gratuity                                            -                       -
                                                                   670,923                 564,521
     Reserve for Lapsed unit linked policies                     1,358,813    2,029,736    117,739      682,260
     unlikely to be revived

                          TOTAL                                              67,631,851               35,429,854
                                                                                                                                                     21




Form A- BS
Balance sheet as at 31st March 2007
                                                                                                                           (Amount in Rs. ‘000)
Particulars                                                   Schedule             Current           Current         Previous          Previous
                                                                                      Year              Year             Year              Year

APPLICATION OF FUNDS
INVESTMENTS
Shareholders’                                                       8                            6,536,500                            2,780,868
Policyholders’                                                     8A
    Participating
           Individual Assurance                                                6,162,724                             3,893,622
           Individual Pension                                                    220,101                               150,722
    Non Participating
           Individual Assurance                                                   208,183                             142,148
           Individual Annuity                                                      50,900                              30,478
           Group Assurance                                                        231,297                             138,174
    Linked
           Individual Assurance                                                2,152,260                              400,149
           Individual Pension                                                     21,112                                9,352
           Group Superannuation                                                    2,610                                1,134
           Group Gratuity                                                          1,571                                  344
                                                                                                 9,050,758                            4,766,123
ASSETS HELD TO COVER LINKED LIABILITIES                            8B                          51,868,401                           25,693,200
(Refer Schedule 16 Note 23)
LOANS                                                              9                                  18,630                                3,406
FIXED ASSETS                                                       10
Gross Block                                                                    1,043,272                              691,544
Less : Accumulated Depreciation                                                  510,127                              328,759
Net Block                                                                         533,145                             362,785
Capital work in progress                                                              2,549                             1,854
                                                                                                     535,694                            364,639
CURRENT ASSETS
Cash and bank balances                                             11                            4,198,042                            2,958,503
Advances and other Assets                                          12                              854,477                              762,890
                        Sub-Total(A)                                                             5,052,519                            3,721,393
LESS: CURRENT LIABILITIES AND PROVISIONS
Current liabilities                                                13                            8,093,047                            3,890,484
Provisions                                                         14                               97,733                               52,387
                        Sub-Total(B)                                                             8,190,780                            3,942,871
NET CURRENT ASSETS (C) = (A-B)                                                                 (3,138,261)                            (221,478)
MISCELLANEOUS EXPENDITURE                                          15                                        -                                  -
(To the extent not written off or adjusted )
DEBIT BALANCE IN PROFIT & LOSS ACCOUNT                                                           2,760,129                            2,043,096
(Shareholders’ account )
                        Total                                                                  67,631,851                           35,429,854

Notes to Financial statements                                      16
The accompanying notes and schedules form an integral part of the financial statements.
As per our report of even date attached
For Kirtane & Pandit     For S. R. Batliboi & Co. For Bajaj Allianz Life Insurance Company Limited
Chartered Accountants    Chartered Accountants

Suhas Deshpande          Hemal Shah              Heinz Dollberg            Sanjiv Bajaj                Craig Ellis               Ranjit Gupta
Partner                  Partner                 Director                  Director                    Director                  Director
Membership No. 31787     Membership No. 42650

Place : Pune                                     Sam Ghosh                 Rajesh Viswanathan          Andrew Wakeling           Sameer Bakshi
Date : 11th May 2007                             Chief Executive Officer   Chief Financial Officer     Appointed Actuary         Company Secretary
                                                                                                                                                                                             22

Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 1 : Premium (Net of Service Tax)
                                                                                                                                                                     (Amount in Rs. ‘000 )
Particulars                             Current Year          Participating                        Non Participating                                  Linked
                                                         Individual     Individual    Individual       Individual          Group   Individual   Individual   Group Super-        Group
                                                         Assurance        Pension     Assurance          Annuity       Assurance   Assurance      Pension      annuation       Gratuity

First Year Premium                        30,846,709       944,138            3,379      30,742                 -       184,523    28,646,548    654,632          68,134        314,613
Renewal Premium                           10,402,019     2,591,424        64,301         20,052                 -         70,696    7,382,885    267,642                -         5,019
Single Premium                            11,851,243              -               -      49,659           19,497          57,879   10,893,817    829,391                -         1,000

Total Premium                             53,099,971     3,535,562        67,680        100,453           19,497        313,098    46,923,250   1,751,665         68,134        320,632

Premium Income from Business written:
In India                                  53,099,971     3,535,562        67,680        100,453           19,497        313,098    46,923,250   1,751,665         68,134        320,632
Outside India                                       -             -               -            -                -              -            -            -              -              -

Total Premium                             53,099,971     3,535,562        67,680        100,453           19,497        313,098    46,923,250   1,751,665         68,134        320,632




Particulars                             Previous Year         Participating                        Non Participating                                  Linked
                                                         Individual     Individual    Individual       Individual          Group   Individual   Individual   Group Super-        Group
                                                         Assurance        Pension     Assurance          Annuity       Assurance   Assurance      Pension      annuation       Gratuity

First Year Premium                        12,092,632     1,352,966            5,624      31,080                 -        86,400    10,182,725    309,887          37,428         86,522
Renewal Premium                            4,168,078     1,935,104        61,897          8,025                 -        38,921     2,002,067    118,025             526          3,513
Single Premium                            15,075,068              -               -      76,688           18,143         35,532    14,585,008    359,697                -              -

Total Premium                             31,335,778     3,288,070        67,521        115,793           18,143        160,853    26,769,800    787,609          37,954         90,035

Premium Income from Business written:
In India                                  31,335,778     3,288,070        67,521        115,793           18,143        160,853    26,769,800    787,609          37,954         90,035
Outside India                                       -             -               -            -                -              -            -            -              -              -

Total Premium                             31,335,778     3,288,070        67,521        115,793           18,143        160,853    26,769,800    787,609          37,954         90,035
Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 2 : Commissions
                                                                                                                                                                                   (Amount in Rs. ‘000 )
Particulars                                    Current Year               Participating                          Non Participating                                  Linked
                                                                   Individual       Individual     Individual        Individual          Group   Individual   Individual   Group Super-        Group
                                                                   Assurance          Pension      Assurance           Annuity       Assurance   Assurance      Pension      annuation       Gratuity
Commission Paid
Direct - First year premium                         8,952,028         288,936               311         9,721                -         14,733    8,580,403      57,862              24             38
        - Renewal Premium                             395,618         136,759             1,163           909                -              -      252,239       4,548               -              -
        - Single Premium                              128,021               -                  -          962              246              -      119,696       7,117               -              -
Add : Commission on Reinsurance Accepted                     -              -                  -            -                -              -             -           -              -              -
Less : Commission on Reinsurance Ceded                 (8,854)          (752)                (2)        (185)                -              -       (7,914)         (1)              -              -
(Refer Schedule 16 Note 15)
Net Commission                                      9,466,813         424,943             1,472         11,407             246          14,733   8,944,424      69,526              24             38
Breakup of commission expenses ( Gross) incurred to procure business is furnished below (*)
Agents                                              5,876,357
Brokers                                                     -
Corporate Agency                                    2,976,808
Referral                                              622,502
Total                                               9,475,667
Note : Commission on First Year premium includes referral fees amounting to Rs. 622,502 (Previous year 156,666).
* Information across line of business has not been disclosed as information is not readily available.
Particulars                                     Previous Year             Participating                          Non Participating                                  Linked
                                                                   Individual       Individual     Individual        Individual          Group   Individual   Individual   Group Super-        Group
                                                                   Assurance          Pension      Assurance           Annuity       Assurance   Assurance      Pension      annuation       Gratuity
Commission Paid
Direct - First year premium                         3,029,282         394,138               576         12,678               -          3,988    2,585,463      32,342              62             35
       - Renewal Premium                              219,082         118,428             1,088            398               -              -       96,548       2,620               -              -
       - Single Premium                               176,782               -                 -          1,468             205              -      171,517       3,592               -              -
Add : Commission on Reinsurance Accepted                    -               -                 -              -               -               -           -            -               -              -
Less : Commission on Reinsurance Ceded                (6,476)         (1,392)              (29)           (48)             (8)               -     (4,936)         (63)               -              -
(Refer Schedule 16 Note 15)
Net Commission                                      3,418,670         511,174             1,635         14,496             197          3,988    2,848,592      38,491              62             35
Breakup of commission expenses ( Gross) incurred to procure business is furnished below (*)
Agents                                              2,276,816
Brokers                                                   132
Corporate Agency                                      991,532
Referral                                              156,666
Total                                               3,425,146
* Information across line of business has not been disclosed as information is not readily available.
                                                                                                                                                                                                           23
                                                                                                                                                                                               24

Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 3 : Operating Expenses Related To Insurance Business                                        (Refer Schedule 16 Note 10)
                                                                                                                                                                       (Amount in Rs. ‘000 )
Particulars                                 Current Year        Participating                        Non Participating                                  Linked
                                                           Individual     Individual    Individual       Individual          Group   Individual   Individual   Group Super-        Group
                                                           Assurance        Pension     Assurance          Annuity       Assurance   Assurance      Pension      annuation       Gratuity

Employees’ remuneration, welfare benefits
and other manpower costs                       4,439,439     375,209            4,585       9,012              230          3,690    3,939,161     102,687             803          4,062
Travel, conveyance and vehicle running           316,600      26,758              327         643               16            263      280,923       7,323              57            290
expenses
Training expenses                                578,348      48,880              597       1,174               30            481      513,174      13,378             105            529
Rents, rates and taxes                         1,313,917     113,241            1,239       2,783               68          1,190    1,166,135      28,010             206          1,045
Repairs                                           93,814       7,929               97         190                5             78       83,242       2,170              17             86
Printing and Stationery                          216,136      18,267              223         439               11            180      191,780       4,999              39            198
Communication expenses                         1,037,040      87,648            1,071       2,105               54            862      920,176      23,987             188            949
Legal and professional charges                    13,423       1,135               14          27                1             11       11,911         310               2             12
Medical fees                                      49,486       4,182               51         100                3             41       43,910       1,145               9             45
Auditors’ fees, expenses, etc.
a) as auditor                                      1,500         126               2            3                 -             1        1,332           35               -              1
b) as advisor or in any other capacity,
    in respect of
    (i) Taxation Matters                               -           -               -            -                -              -            -           -               -              -
    (ii) Insurance Matters                             -           -               -            -                -              -            -           -               -              -
    (iii) Management Services; and                     -           -               -            -                -              -            -           -               -              -
c) in any other capacity                               -           -               -            -                -              -            -           -               -              -
d) out of pocket expenses                            376          32               -            -                -              -          335           9               -              -
Advertisement and publicity                      164,674      13,917             170          334                9            137      146,117       3,809              30            151
Interest and bank charges                        119,284      10,082             123          242                6             99      105,842       2,759              22            109
Others
a) Information technology expenses               227,693      19,244             235          462               12            189      202,035       5,267              41            208
b) Insurance, water and electricity               96,217       8,132              99          195                5             80       85,375       2,226              17             88
    charges
c) Policy stamps                                  78,697       6,651               81         160                4             65       69,830       1,820              14             72
d) Security and housekeeping                      68,392       5,780               70         139                4             57       60,685       1,582              12             63
e) Marketing expenses                          1,332,795     112,644            1,377       2,706               69          1,108    1,182,602      30,828             241          1,220
f) Miscellaneous expenses                        396,087      20,303              302         593               15            243      364,174       9,833             273            351
Depreciation (Refer Schedule 10)                 186,271      15,743              192         378               10            155      165,280       4,309              34            170
              Total                           10,730,189     895,903        10,855         21,685              552          8,930    9,534,019     246,486           2,110          9,649
Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 3 : Operating Expenses Related to Insurance Business                                         (Refer Schedule 16 Note 10)
                                                                                                                                                                        (Amount in Rs. ‘000 )
Particulars                                 Previous Year        Participating                        Non Participating                                  Linked
                                                            Individual     Individual    Individual       Individual          Group   Individual   Individual   Group Super-        Group
                                                            Assurance        Pension     Assurance          Annuity       Assurance   Assurance      Pension      annuation       Gratuity

Employees’ remuneration, welfare benefits
and other manpower costs                       2,095,628      456,428            5,242       9,221              210          2,096    1,570,456      50,299             419          1,257
Travel, conveyance and vehicle running
expenses                                         243,337       52,999             608        1,071               24            243      182,357       5,840              49            146
Training expenses                                339,602       73,965             849        1,494               34            340      254,498       8,150              68            204
Rents, rates and taxes                           242,836       46,356             401        1,056               21            256      190,155       4,479              29             83
Repairs                                           58,461       12,733             146          257                6             58       43,811       1,403              12             35
Printing and Stationery                           92,211       20,084             231          406                9             92       69,103       2,213              18             55
Communication expenses                           226,387       49,307             566          996               23            226      169,655       5,433              45            136
Legal and professional charges                     9,125        1,987              23           40                1              9        6,839         219               2              5
Medical fees                                      30,642        6,674              77          135                3             31       22,963         735               6             18
Auditors’ fees, expenses, etc.
(a) as auditor                                     1,000          218               2            5                 -             1          749           24               -              1
(b) as advisor or in any other capacity,
    in respect of
    (i) Taxation Matters                             200           44               1            -                -              -          150           5               -              -
    (ii) Insurance Matters                             -            -               -            -                -              -            -           -               -              -
    (iii) Management Services; and                     -            -               -            -                -              -            -           -               -              -
(c) in any other capacity                              -            -               -            -                -              -            -           -               -              -
(d) Out of pocket expenses                           372           81               1            2                -              -          279           9               -              -
Advertisement and publicity                      176,896       38,528             442          778               18            177      132,566       4,246              35            106
Interest and Bank Charges                         60,711       13,223             152          267                6             61       45,497       1,457              12             36
Others
a) Information technology expenses               110,982       24,172             277          488               11            111       83,170       2,664              22             67
b) Insurance, water and electricity               56,506       12,307             141          249                6             57       42,345       1,356              11             34
    charges
c) Policy stamps                                  38,507        8,387            96            169                4             39       28,857         924               8             23
d) Security and housekeeping                      28,312        6,166            71            125                3             28       21,217         679               6             17
e) Marketing expenses                            489,743      106,666         1,224          2,155               49            490      367,013      11,754              98            294
f) Miscellaneous expenses                        458,488       99,891         1,145          2,017               46            455      343,565      11,002              91            276
Depreciation (Refer Schedule 10)                 108,164       23,558           270            476               11            108       81,058       2,596              22             65
                                               4,868,110    1,053,774        11,965         21,407              485          4,878    3,656,303     115,487             953          2,858
                                                                                                                                                                                                25
                                                                                                                                                                                         26

Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 4 : Benefits paid (net)
                                                                                                                                                                 (Amount in Rs. ‘000 )
Particulars                             Current Year           Participating                     Non Participating                                   Linked
                                                         Individual      Individual   Individual     Individual        Group     Individual   Individual Group Super-        Group
                                                         Assurance         Pension    Assurance        Annuity     Assurance     Assurance      Pension     annuation      Gratuity
Insurance Claims:
(a) Claims by Death                          601,222       120,750           1,216       10,067               -       205,901      192,466      62,173          1,649          7,000
(b) Claims by Maturity                       184,154       183,935               -          219               -             -            -           -              -              -
(c) Annuities/Pensions payment                 1,836             7               -          283           1,546             -            -           -              -              -
(d) UL Withdrawals/Surrenders &
    Other Benefits                         6,228,662        22,122             480        2,805                -             -   5,951,946     223,967         12,451         14,891
(Amount ceded in reinsurance):
(a) Claims by Death                          (19,443)     (12,778)           (358)        (564)                -       (2,405)     (3,338)            -              -             -
(b) Claims by Maturity                              -            -               -            -                -             -           -            -              -             -
(c) Annuities/Pensions payment                      -            -               -            -                -             -           -            -              -             -
(d) UL Withdrawals/Surrenders &
    Other Benefits                           (11,080)     (10,760)                -       (320)                -             -            -           -              -             -
Amount accepted in reinsurance:
(a) Claims by Death                                 -             -               -            -               -             -            -           -              -             -
(b) Claims by Maturity                              -             -               -            -               -             -            -           -              -             -
(c) Annuities/Pensions payment,                     -             -               -            -               -             -            -           -              -             -
(d) UL Withdrawals/Surrenders &
    Other Benefits                                 -             -               -            -               -             -            -           -              -              -
             Total                         6,985,351       303,276           1,338       12,490           1,546       203,496    6,141,074     286,140         14,100         21,891
Benefits paid to claimants:
    In India                               6,985,351       303,276           1,338       12,490           1,546       203,496    6,141,074     286,140         14,100         21,891
    Outside India                                  -             -               -            -               -             -            -           -              -              -
             Total                         6,985,351       303,276           1,338       12,490           1,546       203,496    6,141,074     286,140         14,100         21,891

Particulars                             Previous Year          Participating                       Non Participating                                 Linked
                                                         Individual      Individual   Individual       Individual        Group   Individual   Individual Group Super-         Group
                                                         Assurance         Pension    Assurance          Annuity     Assurance   Assurance      Pension     annuation       Gratuity
Insurance Claims:
(a) Claims by Death                          162,814        48,752             636        5,678               -        41,788       64,735       1,225               -             -
(b) Claims by Maturity                        59,969        59,969               -            -               -             -            -           -               -             -
(c) Annuities/Pensions payment                   551             -               -           36             515             -            -           -               -             -
(d) UL Withdrawals/Surrenders &
    Other Benefits                         6,333,950        12,319              80          262                -             -   6,222,881      70,236          7,413         20,759
(Amount ceded in reinsurance):
(a) Claims by Death                          (16,343)       (3,619)               -       (530)                -          (50)    (12,044)        (100)              -             -
(b) Claims by Maturity                              -             -               -           -                -             -           -            -              -             -
(c) Annuities/Pensions payment                      -             -               -           -                -             -           -            -              -             -
(d) UL Withdrawals/Surrenders &
    Other Benefits                            (6,103)       (5,522)               -       (581)                -             -            -           -              -             -
Amount accepted in reinsurance:
(a) Claims by Death                                 -             -               -            -               -             -            -           -              -             -
(b) Claims by Maturity                              -             -               -            -               -             -            -           -              -             -
(c) Annuities/Pensions payment                      -             -               -            -               -             -            -           -              -             -
(d) UL Withdrawals/Surrenders &
    Other Benefits                                 -             -               -            -               -             -            -           -              -              -
             Total                         6,534,838       111,899             716        4,865             515        41,738    6,275,572      71,361          7,413         20,759
Benefits paid to claimants:
    In India                               6,534,838       111,899             716        4,865             515        41,738    6,275,572      71,361          7,413         20,759
    Outside India                                  -             -               -            -               -             -            -           -              -              -
             Total                         6,534,838       111,899             716        4,865             515        41,738    6,275,572      71,361          7,413         20,759
                                                                                                                                     27




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 5 : Share Capital
                                                                                                             (Amount in Rs. ‘000 )
Particulars                                                                                 Current Year         Previous Year

Authorised Capital
200,000,000 Equity Shares of Rs. 10/- Each                                                     2,000,000              2,000,000

Issued, Subscribed, Called and Paid up Capital                                                 1,503,680              1,502,338
Equity Shares of Rs. 10/- Each
150,368,000 (Previous Year 150,233,800) Equity Shares of Rs.10/- Each

Less : Preliminary Expenses (to the extent not written off)                                              -                     -

Total                                                                                          1,503,680              1,502,338


Note : Of the above share capital as of 31st March 2007, 111,272,320 (Previous year: 111,173,012) equity shares are held by the
holding company, Bajaj Auto Ltd.




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 5A : Pattern of Shareholding (As Certified by Management)

Shareholder                                                   Current Year                          Previous Year
                                                         Number of               % of           Number of                  % of
                                                            Shares            Holding              Shares               Holding

PROMOTERS:

   Indian
       Bajaj Auto Limited                             111,272,320                  74          111,173,012                   74

   Foreign
      Allianz SE                                        39,095,680                 26           39,060,788                   26

TOTAL                                                 150,368,000                 100          150,233,800                  100
28




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 6 : Reserves and Surplus
                                                                                                            (Amount in Rs. ‘000 )
     Particulars                                              Current Year    Current Year       Previous Year   Previous Year
     Capital Reserve                                                                     -                                    -
     Capital Redemption Reserve                                                          -                                    -
     Share Premium                                                                       -                                    -
     Opening balance                                             3,495,310                           1,176,565
     Add: Share Premium received during the year                 2,006,290      5,501,600            2,318,745       3,495,310
     Revaluation Reserve                                                                 -                                    -
     General Reserve                                                                     -                                    -
     Catastrophe Reserve                                                                 -                                    -
     Other Reserve                                                                       -                                    -
     Balance of Profit & Loss Account                                                    -                                    -

     Total                                                                      5,501,600                            3,495,310




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 7 : Borrowings
                                                                                                            (Amount in Rs. ‘000 )
     Particulars                                                                             Current Year        Previous Year
     Debentures/Bonds                                                                                   -                     -
     Banks                                                                                              -                     -
     Financial Institutions                                                                             -                     -
     Others                                                                                             -                     -

     TOTAL                                                                                              -                     -
                                                                                                                                    29




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 8 : Investments - Shareholders’
                                                                                                            (Amount in Rs. ‘000 )
Particulars                                                                                 Current Year        Previous Year

LONG TERM INVESTMENTS
Government securities and Government                                                             910,129               472,900
guaranteed bonds including Treasury Bills
(Refer Note 1 below)
Other Approved Securities                                                                               -                     -
Other Investments
(a) Shares
    (aa) Equity                                                                                        -                     -
    (bb)Preference                                                                                     -                     -
(b) Mutual Funds                                                                                       -                     -
(c) Derivative Instruments                                                                             -                     -
(d) Debentures / Bonds                                                                           473,914               200,041
(e) Other Securities
    (aa) Fixed Deposit with banks                                                                250,000                      -
(f) Subsidiaries                                                                                       -                      -
Investment Properties - Real Estate                                                                     -                     -
Investments in Infrastructure and Social Sector Bonds                                            789,598               463,767
Other than Approved Investments                                                                  169,102               134,775
SHORT TERM INVESTMENTS
Government securities and Government                                                          1,722,015                345,167
guaranteed bonds including Treasury Bills
Other Approved Securities                                                                               -                     -
Other Investments                                                                                       -                     -
(a) Shares
    (aa) Equity                                                                                       -                      -
    (bb)Preference                                                                                    -                      -
(b) Mutual Funds                                                                                235,902                155,953
(c) Derivative Instruments                                                                            -                      -
(d) Debentures / Bonds                                                                        1,269,615                694,092
(e) Other Securities
    (aa) Fixed Deposit with banks                                                                200,000                      -
(f) Subsidiaries                                                                                       -                      -
Investment Properties - Real Estate                                                                     -                     -
Investments in Infrastructure and Social Sector Bonds                                            491,089               314,173
Other than Approved Investments                                                                   25,136                      -

          Total                                                                               6,536,500              2,780,868
INVESTMENTS
     In India                                                                                 6,536,500              2,780,868
     Outside India                                                                                      -                     -

          Total                                                                               6,536,500              2,780,868

Notes :
1.   Includes Rs. 106,040 (Previous Year Rs. 108,576 ) deposited with Deutsche Bank AG, pursuant to Section 7 of the Insurance
     Act 1938 (Refer Schedule 16 Note 6 )
2.   Market Value of the above total investments of Rs. 6,536,500 (Previous Year Rs.27,80,868 ) is Rs. 6,480,926 (Previous Year
     Rs. 2,762,263)
3.   Historical cost of investment valued on fair value basis is Rs. 235,817 ( Previous Year Rs. 155,242)
                                                                                                                                                                                                         30

Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 8A : Investments - Policyholders’
                                                                                                                                                                                 (Amount in Rs. ‘000 )
Particulars                                  Current Year              Participating                         Non Participating                                    Linked
                                                                 Individual      Individual     Individual       Individual          Group     Individual   Individual   Group Super-        Group
                                                                 Assurance         Pension      Assurance          Annuity       Assurance     Assurance      Pension      annuation       Gratuity
LONG TERM INVESTMENTS
Government securities and Government              5,056,845      3,689,642         185,101        147,871           50,900        155,932        817,460       8,563           1,036            340
guaranteed bonds including Treasury Bills
Other Approved Securities
(a) Shares
    (aa) Equity                                     597,847        597,847               -               -                -              -             -             -              -              -
    (bb) Preference                                       -              -               -               -                -              -             -             -              -              -
(b) Mutual funds                                          -              -               -               -                -              -             -             -              -              -
(c) Derivative Instruments                                -              -               -               -                -              -             -             -              -              -
(d) Debentures / Bonds                              776,943        736,943          10,000               -                -              -        30,000             -              -              -
(e) Other Securities
    (aa) Fixed Deposits with Banks                   50,000              -                -              -                -              -        50,000             -              -              -
(f) Subsidiaries                                          -              -                -              -                -              -             -             -              -              -
(g) Investment Properties - Real Estate             167,465        167,465                -              -                -              -             -             -              -              -
Investments in Infrastructure &
Social Sector Bonds                               1,000,577        770,600          25,000         35,000                 -         3,893        165,500             -           195            389
Other than Approved Investments
    - Bonds                                         100,000        100,000                -              -                -              -              -            -              -              -
    - Equity                                              -              -                -              -                -              -              -            -              -              -
SHORT TERM INVESTMENTS
Government securities and Government                435,524               -               -        25,312                 -         55,483       339,959      12,549           1,379            842
guaranteed bonds including Treasury Bills
Other Approved Securities                                  -              -               -              -                -              -              -            -              -              -
(a) Shares
    (aa) Equity                                           -              -                -              -                -              -             -             -              -              -
    (bb) Preference                                       -              -                -              -                -              -             -             -              -              -
(b) Mutual Funds                                          -              -                -              -                -              -             -             -              -              -
(c) Derivative Instruments                                -              -                -              -                -              -             -             -              -              -
(d) Debentures / Bonds                              664,955         50,000                -              -                -         15,989       598,966             -              -              -
(e) Other Securities                                      -              -                -              -                -              -             -             -              -              -
(f) Subsidiaries                                          -              -                -              -                -              -             -             -              -              -
(g) Investment Properties - Real Estate                   -              -                -              -                -              -             -             -              -              -
Investments in Infrastructure &
Social Sector Bonds                                 200,602         50,227                -              -                -              -       150,375             -              -              -
Other than Approved Investments                           -              -                -              -                -              -             -             -              -              -
     TOTAL                                        9,050,758      6,162,724         220,101        208,183           50,900        231,297      2,152,260      21,112           2,610          1,571
In India                                          9,050,758      6,162,724         220,101        208,183           50,900        231,297      2,152,260      21,112           2,610          1,571
Outside India                                             -              -               -              -                -              -              -           -               -              -
    Total                                           9,050,758        6,162,724        220,101        208,183       50,900         231,297      2,152,260      21,112           2,610          1,571
Note:
1. Market Value of the above total investments of Rs. 9,050,758 (Previous year Rs. 4,766,123) is Rs. 8,751,312 (Previous year Rs. 4,671,956)
2. Historical cost of investment valued on fair value basis is Rs. 582,404 (Previous year Rs. 175,927)
Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 8A : Investments - Policyholders’
                                                                                                                                                                                 (Amount in Rs. ‘000 )
Particulars                                   Previous Year            Participating                         Non Participating                                    Linked
                                                                 Individual      Individual     Individual       Individual          Group     Individual   Individual   Group Super-        Group
                                                                 Assurance         Pension      Assurance          Annuity       Assurance     Assurance      Pension      annuation       Gratuity
LONG TERM INVESTMENTS
Government securities and Government              3,423,849      2,897,957        150,722         133,409           30,478         30,382        170,774       8,849           1,034            244
guaranteed bonds including Treasury Bills
Other Approved Securities
(a) Shares
    (aa) Equity                                     188,915        188,915                -             -                 -              -             -             -              -              -
    (bb) Preference                                       -              -                -             -                 -              -             -             -              -              -
(b) Mutual funds                                          -              -                -             -                 -              -             -             -              -              -
(c) Derivative Instruments                                -              -                -             -                 -              -             -             -              -              -
(d) Debentures / Bonds                              352,643        302,998                -             -                 -              -        49,645             -              -              -
(e) Other Securities                                      -              -                -             -                 -              -             -             -              -              -
(f) Subsidiaries                                          -              -                -             -                 -              -             -             -              -              -
(g) Investment Properties - Real Estate                   -              -                -             -                 -              -             -             -              -              -
Investments in Infrastructure &                     641,168        467,252                -         8,739                 -              -       165,177             -              -              -
Social Sector Bonds
Other than Approved Investments
    - Equity                                               -              -               -              -                -              -              -            -              -              -
    - Bonds                                                -              -               -              -                -              -              -            -              -              -
SHORT TERM INVESTMENTS
Government securities and Government                 49,640               -               -              -                -         49,640              -            -              -              -
guaranteed bonds including Treasury Bills
Other Approved Securities
(a) Shares
    (aa) Equity                                           -              -                -              -                -              -             -            -              -              -
    (bb) Preference                                       -              -                -              -                -              -             -            -              -              -
(b) Mutual Funds                                          -              -                -              -                -              -             -            -              -              -
(c) Derivative Instruments                                -              -                -              -                -              -             -            -              -              -
(d) Debentures / Bonds                               84,809         36,500                -              -                -         33,053        14,553          503            100            100
(e) Other Securities                                      -              -                -              -                -              -             -            -              -              -
(f) Subsidiaries                                          -              -                -              -                -              -             -            -              -              -
(g) Investment Properties - Real Estate                   -              -                -              -                -              -             -            -              -              -
Investments in Infrastructure &                      25,099              -                -              -                -         25,099             -            -              -              -
Social Sector Bonds
Other than Approved Investments                            -              -               -              -                -              -              -            -              -              -
   TOTAL                                          4,766,123      3,893,622         150,722        142,148           30,478        138,174        400,149       9,352           1,134            344
   In India                                       4,766,123      3,893,622         150,722        142,148           30,478        138,174        400,149       9,352           1,134            344
   Outside India                                          -              -               -              -                -              -              -           -               -              -
    Total                                           4,766,123        3,893,622        150,722        142,148       30,478         138,174        400,149       9,352           1,134            344
Note:
1. Market Value of the above total investments of Rs. 9,050,758 (Previous year Rs. 4,766,123) is Rs. 8,751,312 (Previous year Rs. 4,671,956)
2. Historical cost of investment valued on fair value basis is Rs. 582,404 (Previous year Rs. 175,927)
                                                                                                                                                                                                         31
32




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 8B : Assets held to cover linked liabilities
                                                                                                             (Amount in Rs. ‘000 )
     Particulars                                                                              Current Year       Previous Year
     LONG TERM INVESTMENTS
     Government securities and Government                                                           35,552             257,226
     guaranteed bonds including Treasury Bills
     Other Approved Securities
     (a) Shares
         (aa) Equity                                                                           28,337,065           14,986,363
         (bb) Preference                                                                                -                    -
     (b) Mutual Funds                                                                                   -                    -
     (c) Derivative Instruments                                                                         -                    -
     (d) Debentures / Bonds                                                                     1,067,044              646,879
     (e) Other Securities
         (aa) Fixed Deposit with banks                                                            600,000                     -
     (f) Subsidiaries                                                                                   -                     -
     Investment Properties - Real Estate                                                                 -                    -
     Investments in Infrastructure and Social Sector Bonds                                        623,991              242,358
     Other than Approved Investments
     (a) Equity                                                                                  7,540,102           2,296,551
     (b) Bonds                                                                                           -              48,777

     SHORT TERM INVESTMENTS
     Government securities and Government                                                         204,994            1,042,356
     guaranteed bonds including Treasury Bills
     Other Approved Securities
     (a) Shares
         (aa) Equity                                                                                     -                   -
         (bb) Preference                                                                                 -                   -
     (b) Mutual Funds                                                                                    -                   -
     (c) Derivative Instruments                                                                          -                   -
     (d) Debentures / Bonds                                                                      7,606,662           2,517,332
     (e) Other Securities                                                                                -             485,031
     (f) Subsidiaries                                                                                    -                   -
     Investment Properties - Real Estate                                                                 -                    -
     Investments in Infrastructure and Social Sector Bonds                                        491,534              210,950
     Other than Approved Investments
        (aa) Bonds                                                                                  73,924                    -
        (bb) Mutual Fund                                                                            44,183                    -
     Fixed Deposits with Banks                                                                   1,081,000             350,000
     Net Current Assets                                                                          4,162,350           2,609,377

               Total                                                                           51,868,401           25,693,200

     INVESTMENTS
         In India                                                                              51,868,401           25,693,200
         Outside India                                                                                  -                    -

               Total                                                                           51,868,401           25,693,200
     (Refer Schedule 16 Note 23)
     Historical Cost of above investments is Rs. 48,845,768 ( Previous Year Rs. 21,633,920)
                                                                                                                           33




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 9 : Loans
                                                                                                   (Amount in Rs. ‘000 )
Particulars                                                                         Current Year       Previous Year
SECURITY-WISE CLASSIFICATION
Secured
(a) On mortgage of property
    (aa) In India                                                                              -                   -
    (bb) Outside India                                                                         -                   -
(b) On Shares, Bonds, Government Securities, etc.                                              -                   -
(c) Loan against policies                                                                 18,630               3,406

          Total                                                                           18,630               3,406

BORROWER-WISE CLASSIFICATION
(a) Central and State Government                                                               -                   -
(b) Bank and Financial Institutions                                                            -                   -
(c) Subsidiaries                                                                               -                   -
(d) Companies                                                                                  -                   -
(e) Loan against policies                                                                 18,630               3,406

          Total                                                                           18,630               3,406

PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard :
    (aa) In India                                                                         18,630               3,406
    (bb) Outside India                                                                         -                   -

          Total                                                                           18,630               3,406

MATURITY-WISE CLASSIFICATION
(a) Short-Term                                                                                 -                   -
(b) Long-Term                                                                             18,630               3,406

          Total                                                                           18,630               3,406
                                                                                                                                                                             34

Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 10 : Fixed Assets
                                                                                                                                                     (Amount in Rs. ‘000 )
Particulars                                             GROSS BLOCK                                           DEPRECIATION                     NET BLOCK
                                              Opening     Additions   Deductions      Closing   Upto last   For the      On Sales/   To date       As at       Previous
                                                                                                    year      year    Adjustments               Year End          Year
Intangible -Computer Software                  26,124        7,705             -      33,829      22,964     3,359               -    26,323      7,506          3,160
Land-Freehold                                       -             -            -            -           -         -              -         -           -              -
Leasehold Properties                          146,673       83,624         2,730     227,567      73,065     44,803            20    117,848    109,719         73,608
Buildings                                     112,750       73,852             -     186,602      10,147     2,255               -    12,402    174,200        102,603
Electrical Fittings                             4,136             -            -       4,136       1,173       262               -    1,435       2,701          2,963
Furniture & Fittings                           56,861        7,767          463       64,165      26,156     4,368             78     30,446     33,719         30,705
Information Technology Equipment              250,777      141,226         1,962     390,041     149,016     96,559            94    245,481    144,560        101,761
Air Conditioner                                43,393       14,016           92       57,317      10,581     6,456             20     17,017     40,300         32,812
Vehicles                                        8,473        5,336         6,543       7,266       5,831     1,531           4,691    2,671       4,595          2,642
Office Equipment                               42,357       29,992             -      72,349      29,826     26,678              -    56,504     15,845         12,531

Total                                         691,544      363,518        11,790    1,043,272    328,759    186,271          4,903   510,127    533,145        362,785

Previous Year                                 523,045      168,514           15      691,544     220,610    108,164            15    328,759    362,785               -


Note: 1. Refer Note No.1 (h) of Schedule 16
                                                                                                                           35




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 11 : Cash and Bank Balances
                                                                                                   (Amount in Rs. ‘000 )
Particulars                                                                         Current Year       Previous Year

1.   Cash (including cheques, drafts and stamps)                                      1,006,433               195,948

2.   Bank Balances
     (a) Deposit Accounts
         (aa) Short-term (due within 12 months of the date of Balance Sheet )                 -               267,631
         (bb) Others                                                                          -                     -
     (b) Current Accounts                                                             3,191,609             2,494,924
     (c) Others                                                                               -                     -

3.   Money at Call and Short Notice
     (a) With Banks                                                                            -                     -
     (b) With Other Institutions                                                               -                     -

4.   Others                                                                                    -                     -

                Total                                                                 4,198,042             2,958,503

Balances with non-scheduled banks included in 2 and 3 above

Cash and Bank Balances

1.   In India                                                                         4,198,042             2,958,503

2.   Outside India                                                                             -                     -

                Total                                                                 4,198,042             2,958,503
36




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 12 : Advances and Other Assets
                                                                                                        (Amount in Rs. ‘000 )
     Particulars                                                                         Current Year       Previous Year

     ADVANCES
     Reserve deposits with ceding companies                                                         -                     -
     Application money for investments                                                        10,221                      -
     Prepayments                                                                              63,414                61,287
     Advances to Directors/Officers                                                                 -                     -
     Advance tax paid and taxes deducted at source                                               314                   250
     Others :
             Travel advances                                                                     960                 1,147
             Employee advances                                                                 3,391                 3,262
             Advances to suppliers                                                            28,749                41,743
             Miscellaneous advances                                                                -                   169

                   Total (A)                                                                 107,049               107,858

     OTHER ASSETS
     Income accrued on investments                                                           248,188               148,571
     Outstanding Premium                                                                     310,762               243,855
     Agents’ Balances                                                                               -                   50
     Foreign Agencies Balance                                                                       -                     -
     Due from other entities carrying on insurance business                                    2,933                15,516
        (Including amount due from Reinsurers)
     Due from subsidiaries/holding company                                                          -                     -
     Deposit with Reserve Bank of India                                                             -                     -
        [pursuant to section 7 of Insurance Act,1938]
     Deposits                                                                                131,762                71,603
     Others :
             Unsettled Investment contract receivable                                         52,143                     -
             Others                                                                            1,640               175,437

                   Total (B)                                                                 747,428               655,032

                   Total (A + B)                                                             854,477               762,890
                                                                                                                                    37




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 13 : Current Liabilities
                                                                                                          (Amount in Rs. ‘000 )
Particulars                                                                             Current Year           Previous Year

Agents’ Balances                                                                          1,817,710                  710,607
Balances due to other insurance companies                                                    81,844                   25,093
Deposits held on reinsurance ceded                                                                    -                     -
Premium received in advance                                                                 111,184                   16,928
Premium & Other Deposits                                                                  1,552,322                1,058,086
Sundry Creditors                                                                          4,359,434                1,671,612
Due to Subsidiaries/holding company                                                                   -                     -
Claims Outstanding                                                                          110,639                   82,131
Annuities Due                                                                                         -                     -
Due to Officers/Directors of the Company                                                      6,249                    1,814
Others :
   Payable - unsettled investment contracts                                                       -                   47,874
   Temporary Overdraft as per the books of account                                           53,665                  276,339

              TOTAL                                                                       8,093,047                3,890,484




Schedule - 14 : Provisions
                                                                                                          (Amount in Rs. ‘000 )
Particulars                                              Current Year    Current Year       Previous Year      Previous Year
ForTaxation
   (Less Payments and Taxes Deducted at Sources)
   Wealth Tax                                                       36              -                     40                -
   Service Tax                                                                      -                                       -
   Fringe Benefit Tax                                          10,000          10,036                 3,500             3,540
For Proposed dividends                                                              -                                       -
For dividend distribution tax                                                       -                                       -
Others:
   For Leave Encashment                                                        87,697                                  48,847

                  Total                                                        97,733                                  52,387




Schedule - 15 : Miscellaneous Expenditure                      (To the extent not written-off or adjusted)
                                                                                                          (Amount in Rs. ‘000 )
Particulars                                                                             Current Year           Previous Year
Discount allowed in issue of shares/debentures                                                    -                             -
Others                                                                                            -                             -

          Total                                                                                   -                             -
38




     Annexure to Revenue Account-Break Up of
     Unit Linked Business (UL) for the year ended 31st March 2007

     Particulars                                                          Schedule                Linked Life
                                                                                      Non-Unit            Unit             Total
                                                                                            (1)             (2)     (3)=(1) + (2)

     PREMIUMS EARNED – NET
     (a)   Premium                                                                   17,632,616     29,290,634       46,923,250
     (b) Reinsurance ceded                                                             (43,746)                 -       (43,746)

                                        SUB-TOTAL                                    17,588,870     29,290,634       46,879,504

     INCOME FROM INVESTMENTS
     (a)   Interest, Dividend & Rent - Gross                                            76,081         658,197          734,278
     (b) Profit on sale/redemption of investments                                             -      3,489,836        3,489,836
     (c) (Loss on sale/redemption of investments)                                         (745)       (968,300)       (969,045)
     (d) Unrealized gain/(loss)                                                               -     (1,003,416)     (1,003,416)
     (e) Other investment income                                                              -        302,927          302,927
                                                                                        75,336       2,479,244        2,554,580

     OTHER INCOME
     (a)   Linked income                                                    UL1       1,568,137     (1,234,737)         333,400
     (b) Contribution from Shareholders’ account                                       863,308                  -       863,308
     (c) Others                                                                         28,074                  -        28,074

                                        TOTAL (A)                                    20,123,725     30,535,141       50,658,866

     COMMISSION                                                                       8,944,424                 -     8,944,424
     OPERATING EXPENSES RELATED TO INSURANCE BUSINESS                                 9,534,019                 -     9,534,019
     Provision For Taxation (Fringe Benefit Tax)                                        64,822                  -        64,822

                                        TOTAL (B)                                    18,543,265                 -    18,543,265

     BENEFITS PAID (NET)                                                    UL2         28,824       6,112,250        6,141,074
     Interim Bonus Paid                                                                       -                 -               -
     Change In Valuation of Liability In Respect of Life Policies                      310,562                  -       310,562
     Change In Valuation Liability                                                            -     24,422,891       24,422,891

                                        TOTAL (C)                                      339,386      30,535,141       30,874,527

     SURPLUS / (DEFICIT) (D) =(A)-(B)-(C)                                             1,241,074                 -     1,241,074

     APPROPRIATIONS
     Balance of Previous Year                                                                 -                 -               -
     Reserve for lapsed unit linked policies unlikely to be revived (E)               1,241,074                 -     1,241,074
     Transfer to Shareholders’ account                                                        -                 -               -

     Balance being funds for future appropriations (D) - (E)                                  -                 -               -
                                                                                                                   39




                                                                                           (Amount in Rs. ‘000 )

           Linked Pension                                  Linked Group                     Total Unit Linked
Non-Unit              Unit             Total    Non-Unit          Unit            Total
     (4)                (5)     (6)=(4) + (5)        (7)            (8)   (9)= (7) + (8)      (10)=(3)+ (6)+(9)


 207,255         1,544,410        1,751,665        9,604       379,162         388,766             49,063,681
    (65)                    -           (65)           -              -                -              (43,811)

 207,190         1,544,410        1,751,600        9,604       379,162         388,766             49,019,870


     686            27,622           28,308          230        12,262          12,492                775,078
       -           187,776          187,776            -           804              804             3,678,416
       -           (56,819)         (56,819)           -        (5,708)         (5,708)            (1,031,572)
       -           (36,802)         (36,802)           -         3,572            3,572            (1,036,646)
       -            16,087           16,087            -         1,522            1,522               320,536
     686           137,864          138,550          230        12,452          12,682              2,705,812


  44,221           (25,190)          19,031        2,028        (2,008)              20               352,451
 101,265                    -       101,265        7,782              -           7,782               972,355
     874                    -            874          33              -              33                 28,981

 354,236         1,657,084        2,011,320       19,677       389,606         409,283             53,079,469

  69,526                    -        69,526           62              -              62             9,014,012
 246,486                    -       246,486       11,759              -         11,759              9,792,264
   1,690                    -          1,690          80              -              80                 66,592

 317,702                    -       317,702       11,901              -         11,901             18,872,868

  19,102           267,038          286,140        8,649        27,342          35,991              6,463,205
       -                    -               -          -              -                -                      -
  17,432                    -        17,432        (201)              -           (201)               327,793
       -         1,390,046        1,390,046            -       362,264         362,264             26,175,201

  36,534         1,657,084        1,693,618        8,448       389,606         398,054             32,966,199

       -                    -               -      (672)              -           (672)             1,240,402


       -                    -               -      (672)              -           (672)                  (672)
       -                    -               -          -              -                -            1,241,074
       -                    -               -          -              -                -                      -

       -                    -               -          -              -                -                      -
40




     Schedules to Annexure to Revenue Account (UL) forming part of Financial Statements for the year ended 31st March 2007

     Schedule - UL1 : Linked Income                  (recovered from linked funds) (net of service tax)

                                                                                                        (Amount in Rs. ‘000 )
                                                          Life             Pension             Group
     Particulars                                   Linked Unit         Linked Unit        Linked Unit                 Total
                                                           (1)                  (2)               (3)      (4)= (1)+(2)+(3)
     Fund Administration charges                       470,835              19,288                 44              490,167
     Fund Management charges                           439,169              20,768              1,984              461,921
     Policy Administration charges                           -                    -                 -                     -
     Surrender charges                                       -                    -                 -                     -
     Switching charges                                       -                    -                 -                     -
     Mortality charges                                 540,909               3,544                  -              544,453
     Rider Premium charges                             117,224                 621                  -              117,845
     Partial withdrawal charges                              -                    -                 -                     -
     Miscellaneous charges                                   -                    -                 -                     -

     TOTAL (UL-1)                                    1,568,137              44,221              2,028            1,614,386
Schedules to Annexure to Revenue Account (UL) forming part of Financial Statements for the year ended 31st March 2007

Schedule - UL2 : Benefits paid (net)
                                                                                                                                                              (Amount in Rs. ‘000 )
                                                  Linked Life                          Linked Pension                            Linked Group                               Total
Sl. No. Particulars                    Non Unit         Unit          Total   Non-Unit           Unit          Total    Non-Unit         Unit         Total          Unit Linked
                                            (1)           (2)   (3)=(1)+(2)        (4)            (5)    (6)=(4)+(5)         (7)          (8)   (9)=(7)+(8)      (10)=(3)+(6)+(9)

1   Insurance Claims
    (a) Claims by Death                 32,162       160,304      192,466      19,102         43,071         62,173       8,649            -         8,649               263,288
    (b) Claims by Maturity                    -             -             -          -              -              -           -           -              -                     -
    (c) Annuities / Pensions payment          -             -             -          -              -              -           -           -              -                     -
    (d) Other benefits
        - Surrender                           -    5,951,946    5,951,946            -       223,967       223,967             -      27,342        27,342             6,203,255
        - Survival                            -            -            -            -             -             -             -           -             -                     -

           Sub Total (A)                32,162     6,112,250    6,144,412      19,102        267,038       286,140        8,649       27,342        35,991             6,466,543

2   Amount Ceded in reinsurance
    (a) Claims by Death                 (3,338)             -      (3,338)           -              -              -           -           -              -               (3,338)
    (b) Claims by Maturity                    -             -             -          -              -              -           -           -              -                     -
    (c) Annuities / Pensions payment          -             -             -          -              -              -           -           -              -                     -
    (d) Other benefits
        - Surrender                           -             -             -          -              -              -           -           -              -                     -
        - Survival                            -             -             -          -              -              -           -           -              -                     -

           Sub Total (B)                (3,338)             -      (3,338)           -              -              -           -           -              -               (3,338)

           TOTAL (A) - (B)              28,824     6,112,250    6,141,074      19,102        267,038       286,140        8,649       27,342        35,991             6,463,205

Benefits paid to claimants:
   In India                             28,824     6,112,250    6,141,074      19,102        267,038       286,140        8,649       27,342        35,991             6,463,205
    Outside India                             -             -             -          -              -              -           -           -              -                     -

           TOTAL (UL2)                  28,824     6,112,250    6,141,074      19,102        267,038       286,140        8,649       27,342        35,991             6,463,205
                                                                                                                                                                                      41
42




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 16 : Notes to financial statements

     Background                                                       Premium on lapsed policies is recognized as income when
                                                                      such policies are reinstated.
     Bajaj Allianz Life Insurance Company Limited (“the Company”)
     was incorporated on 12th March 2001 as a Company under           In case of linked business, top up premiums paid by
     the Companies Act, 1956. The Company obtained a license          policyholders are entirely unitized and considered as single
     from the Insurance Regulatory and Development Authority          premium. This premium is recognised when associated units
     (“IRDA”) for carrying on the business of life insurance on       are allotted.
     3rd August 2001. The license has been renewed for the
                                                                      Commission received on reinsurance ceded is recognized
     financial year ended 31 March 2007.
                                                                      as income in the period in which reinsurance premium is
     The Company is a joint venture between Bajaj Auto Ltd.           ceded.
     (74 percent) and Allianz SE (26 percent). The Company has
                                                                      Income earned on investments
     a wide range of products in traditional and unit-linked
     insurance business.                                              Interest income is recognised on an accrual basis.
     1. Significant Accounting Policies followed by the               Dividend income is recognized when the right to receive
        Company                                                       dividend is established.
     Basis of Preparation                                             Premium or discount on acquisition, as the case may be, in
                                                                      respect of fixed income securities, pertaining to non-linked
     The accompanying financial statements have been prepared
                                                                      investments is amortized on constant yield to maturity basis
     and presented under the historical cost convention, on
                                                                      over the period of maturity/holding and offset against
     the accrual basis of accounting, in compliance with the
                                                                      interest income.
     accounting standards (‘AS’) issued by the Institute of
     Chartered Accountants of India (‘ICAI’), to the extent           Profit/loss on sale/redemption of securities other than
     applicable, and in accordance with the provisions of the         linked investments is recognized on trade/redemption date
     Insurance Act, 1938, the Insurance Regulatory and                and includes effects of accumulated fair value changes, as
     Development Authority (Preparation of Financial Statements       applicable previously recognised, for specific investments
     and Auditor’s Report of Insurance Companies) Regulations,        sold/redeemed during the year. Cost of security is
     2002 (‘the Regulations’), Insurance Regulatory and               determined on first in first out cost basis.
     Development Authority Act, 1999, various circulars issued
                                                                      The realized gains or losses on the debt securities for other
     by IRDA and the Companies Act, 1956 to the extent
                                                                      than linked business is the difference between the net
     applicable and the practices prevailing in the insurance
                                                                      sale consideration and the amortized cost in the books of
     industry. The accounting policies have been consistently
                                                                      the Company as on date of sale.
     applied by the company and except for changes in
     accounting policy discussed in (j) below are consistent with     The realized gains or loss on equity shares and mutual fund
     those used in the previous year.                                 units for other than linked business is the difference
                                                                      between the net sale consideration and the cost in the
     Use of Estimates
                                                                      books of the Company.
     The preparation of financial statements in conformity with
                                                                      The realized gains or losses on securities held for linked
     generally accepted accounting principles requires
                                                                      business is the difference between the net sale
     management to make estimates and assumptions that affect
                                                                      consideration and the weighted average cost as on the
     the reported amounts of assets, liabilities, revenue and
                                                                      date of sale.
     expenses and disclosure of contingent liabilities as on the
     date of financial statements. The estimates and assumptions      Fund Management Charges, Fund Administration Charges
     used in the accompanying financial statements are based          and cost of Insurance are accounted for on accrual basis
     upon management’s evaluation of the relevant facts and           in accordance with terms and conditions described in the
     circumstances as of the date of the financial statements.        issued policies.
     Actual results could differ from those estimates. Any revision
                                                                      b) Reinsurance premium
     to accounting estimates is recognized prospectively in
     current and future periods.                                      Reinsurance premium ceded is accounted in accordance
                                                                      with the treaty with reinsurers.
     a) Revenue Recognition
                                                                      c) Benefits Paid (Including Claims)
     Revenues are recognised as under. However recognition is
     postponed where ultimate collectibility lacks reasonable         Death and surrender claims are accounted for on receipt
     certainty.                                                       of intimation. Maturity claims are accounted when due for
                                                                      payment. Reinsurance recoveries are accounted for in the
     Premium Income
                                                                      same period as the related claims and netted off against
     Premium (net of service tax), is recognised as income when       the claim expense incurred.
     due. For linked business, premium is recognized when the
                                                                      Repudiated claims disputed before judicial authorities are
     associated units are allotted.
                                                                      provided for based on the best judgment of the management
                                                                                                                                      43




considering the facts and evidence in respect of each such        constant yield to maturity basis over the period held to
claim.                                                            maturity / sale.
Withdrawals under unit linked policies are accounted in           Listed equity shares and mutual fund units are stated at
respective schemes when the associated units are cancelled.       fair value, in accordance with IRDA Investment (Amendment)
                                                                  Regulations 2001. Fair value for listed equity shares is the
d) Acquisition Costs
                                                                  lowest last quoted closing price on the National Stock
Acquisition costs such as commission, policy issue expenses       Exchange (NSE) and The Stock Exchange, Mumbai (BSE).
etc. are costs that vary with and are primarily relatable to      Fair value for mutual fund units is the net asset value on
the acquisition of new and renewal insurance contracts.           the Balance Sheet date. Unrealized gains/losses on changes
Such costs are expensed in the year in which they are             in fair values of listed equity shares and mutual funds are
incurred. Accounting for additional first year commission is      taken to the Fair Value Change Account and carried forward
done on an accrual basis, after considering estimated             in the Balance Sheet.
lapsation. Claw back of the first year commission paid, in
                                                                  Investment in real estate properties is valued at cost.
future, if any, will be accounted for in the year in which it
is recovered.                                                     iii) Valuation – linked business
e) Liability for life policies                                    Listed equity shares are valued at fair value, being the last
                                                                  quoted closing price on the NSE. In case the equity shares
i) The Company provides for liabilities in respect of all “in
                                                                  are not listed on the NSE, then they are valued on the last
   force” policies and lapsed policies that are likely to be
                                                                  quoted closing price on BSE.
   revived in future, based on actuarial valuation done by
   the Appointed Actuary as per gross premium method in           Government securities are valued at prices obtained from
   accordance with accepted actuarial practices,                  Credit Rating Information Services of India Ltd. (CRISIL).
   requirements of IRDA and Actuarial Society of India.
                                                                  Corporate bonds and debentures are valued on the basis
ii) Liabilities in respect of unit linked policies which have     of CRISIL Bond Valuer.
    lapsed and are not likely to be revived, are shown as a
                                                                  Treasury bills, certificate of deposits and commercial papers
    separate item under the head “funds for future
                                                                  are valued at cost plus accretion at constant yield to
    appropriations”, until expiry of the revival period. This
                                                                  maturity.
    is as per IRDA Circular No. 041/IRDA/ACTL/MAR-2006
    dated 29 March 2006.                                          Mutual fund units have been valued at the last available
                                                                  Net Asset Value declared by the respective mutual fund.
iii) Linked liabilities comprise of unit liability representing
     the fund value of policies and non-unit liability for        iv) Transfer of investments
     meeting insurance claims etc. which is based on
                                                                  Transfer of investments from Shareholders’ Fund to the
     actuarial valuation done by the Appointed Actuary.
                                                                  Policyholders’ Fund is at book value or market price;
Actuarial policies and assumptions are given in Note 8 below.     whichever is lower.
f) Investments                                                    Transfer of debt securities is at lower of amortized cost or
                                                                  market price.
Investments are made in accordance with the Insurance
Act, 1938, the Insurance Regulatory and Development               Inter fund transfer of Treasury Bills, Certificate of Deposits
Authority (Investment) Regulations, 2000, as amended and          and Commercial Papers between unit linked funds is done
circulars / notifications issued by IRDA from time to time.       at cost plus accretion. All other transfer of investments
                                                                  between unit linked funds is done at market price.
Investments are recorded on trade date at cost, which
includes brokerage and related taxes, if any and excludes         g) Loans
pre-acquisition interest, if any.
                                                                  Loans are stated at historical cost, subject to provision for
i) Classification                                                 impairment, if any.
Investments maturing within twelve months from the Balance        h) Fixed Assets and Depreciation
Sheet date and investments made with the specific intention
                                                                  Fixed assets are stated at cost of acquisition less
to dispose of within twelve months from Balance Sheet
                                                                  accumulated depreciation. Cost of acquisition includes
date are classified as short-term. Investments other than
                                                                  incidental expenses relating to acquisition and installation.
short term are classified as long-term investments.
                                                                  In respect of liabilities incurred in acquisition of fixed assets
Investments are specifically procured and held for                in foreign exchange, the net gain or loss arising on
policyholders and shareholders independently. The income          conversion/settlement is adjusted in the carrying value of
relating to these investments is recognized in the respective     the respective asset.
policyholders / shareholders account.
                                                                  Intangible assets comprising software are stated at cost
ii) Valuation – Shareholders’ investments and non-linked          less amortization.
policyholders’ investments
                                                                  Depreciation / amortization is provided on Straight Line
All debt securities are considered as ‘held to maturity’ and      Method (SLM) with reference to the management’s
accordingly stated at historical cost adjusted for                assessment of the estimated useful life of the assets or the
amortization of premium or accretion of discount on               rates and in the manner specified by the Schedule XIV of
                                                                  the Companies Act, 1956, whichever is higher.
44




     Depreciation / amortisation is provided at the following        During the year, the Company has changed its accounting
     rates:                                                          policy for accruing leave encashment from actual basis to
                                                                     actuarial basis. Such change has no material impact on the
      Asset Class                          Rate of Depreciation/     Revenue account.
                                               Amortisation
                                                                     k) Transactions in Foreign Currency
      Intangibles - Computer Software           33.33% p.a.
      Leasehold Improvements                 Over the balance        Transactions in foreign currency on account of revenue
                                              period of Lease        expenditure are accounted for at the rate prevailing at
                                                                     the date of the transactions. Current assets and liabilities
      Buildings                                  2.00% p.a.          are translated at the year-end closing rates. The resulting
      Electrical Fittings                        6.33% p.a.          exchange gain or loss, if any, is reflected in the profit and
      Furniture & Fittings                       6.33% p.a.          loss account / revenue account.

      Information Technology Equipment          33.33% p.a.          l) Taxation
      Air Conditioner                           10.00% p.a.          Income Tax expense comprises current tax (i.e. amount of
      Vehicles                                  20.00% p.a.          tax for the period determined in accordance with the
                                                                     income-tax law including Fringe Benefit Tax) and deferred
      Office Equipment                          25.00% p.a.          tax charge or credit (reflecting the tax effects of timing
                                                                     differences between the accounting income and taxable
     The Company provides pro rata depreciation from the month
                                                                     income for the period).
     in which the asset is acquired / first put to use and upto
     the month in which the asset is sold/discarded.                 Deferred tax is measured based on the tax rates and the
                                                                     tax laws enacted or substantively enacted at the balance
     Assets costing individually less than Rs. 5,000 are charged
                                                                     sheet date. Deferred tax assets are recognised only to the
     off as revenue expenses. Assets costing Rs. 5,000 and above,
                                                                     extent that there is reasonable certainty that sufficient
     upto Rs. 20,000, are fully depreciated in the year of
                                                                     future taxable income will be available against which such
     acquisition.
                                                                     deferred tax assets can be realised. In situations where
     Impairment of Assets                                            the Company has unabsorbed depreciation or carry forward
                                                                     tax losses, all deferred tax assets are recognised only if
     The Company assesses at each Balance Sheet date whether
                                                                     there is virtual certainty supported by convincing evidence
     there is any indication that an asset may be impaired.
                                                                     that they can be realised against future taxable profits.
     If any such indication exists, the Company estimates the
     recoverable amount of the asset. An impairment loss is          At each balance sheet date the Company re-assesses
     recognized if such recoverable amount of the asset is less      unrecognised deferred tax assets. It recognises
     than its carrying amount. After impairment, depreciation is     unrecognised deferred tax assets to the extent that it has
     provided on the revised carrying amount of the assets over      become reasonably certain or virtually certain, as the case
     its remaining useful life.                                      may be that sufficient future taxable income will be available
                                                                     against which such deferred tax assets can be realised.
     i) Accounting for leases
                                                                     m) Preliminary Expenses
     Operating leases
                                                                     Preliminary expenses incurred are written off to the Profit
     Leases where the lessor effectively retains substantially all
                                                                     and Loss account in five equal installments commencing
     the risks and benefits of ownership over the leased term
                                                                     from the year in which they were first incurred, the balance
     are classified as operating leases. Operating lease rentals
                                                                     to the extent not written off is adjusted against share
     are recognized as an expense in the profit and loss account/
                                                                     capital as required by the regulations.
     revenue account on a straight-line basis over the lease
     term.                                                           n) Interim Bonus
     j) Retirement and other staff benefits                          Bonus paid on settlement of death claims are considered
                                                                     as interim bonus by the Management.
     The Company makes a contribution to the Statutory
     Provident Fund, a defined contribution scheme at the            o) Provisions and Contingent liabilities
     prescribed rates.
                                                                     The Company creates a provision when there is present
     The Company makes a contribution to the Bajaj Auto              obligation as a result of a past event that probably requires
     Employee Superannuation Scheme, a defined contribution          an outflow of resources and a reliable estimate can be
     scheme, for its eligible employees at fixed rates.              made of the amount of the obligation. A disclosure for a
                                                                     contingent liability is made when there is a possible obligation
     The Company makes a contribution towards Employees
                                                                     or a present obligation that may, but probably will not,
     Group Gratuity cum Life Assurance (Cash Accumulation)
                                                                     require an outflow of resources. When there is a possible
     scheme, a defined benefit scheme of LIC. The Company
                                                                     obligation or a present obligation in respect of which the
     provides for Gratuity based on actuarial valuation done as
                                                                     likelihood of outflow of resources is remote, no provision
     at the year end by the Life Insurance Corporation of India
                                                                     or disclosure is made.
     (‘LIC’).
                                                                     p) Service Tax
     Provision for Leave Encashment is accrued and provided
     for on the basis of actuarial valuation made at the end of      Service Tax liability on taxable premium is setoff against
     each accounting year.                                           available service tax credits from service tax payments made
                                                                                                                                                          45




for Insurance Auxiliary and other eligible services. Unutilised               6. Investments as required to be maintained under Section
credits, if any, are carried forward under “Advances and                         7 of the Insurance Act, 1938 are as follows:
other Assets” for adjustments / setoff in subsequent
                                                                                                                                          (Rupees ‘000)
periods, after creating a provision based on estimated
                                                                                                                               st
realization of the unutilised credit.                                                                                    31 March           31st March
                                                                                                                             2007                 2006
q) Earnings per share
                                                                               7.55% Govt. of India Securities 2010*            51,034         51,323
Basic earnings per share is calculated by dividing the net                     (Face Value Rs.50,000)
profit or loss for the year attributed to equity shareholders
                                                                               11.99% Govt. of India Securities 2009*           55,006         57,253
by the weighted number of equity shares outstanding during
                                                                               (Face Value Rs.50,000)
the year.
                                                                              * This investment is in the custody of Deutsche Bank India
For the purpose of calculating diluted earnings per share,                    Branches in the Constituent Subsidiary General Ledger
the net profit or loss for the year attributable to equity                    (‘CSGL’) account.
shareholders and the equity weighted number of shares
outstanding during the year are adjusted for effects of all                   All investments are performing investments.
dilutive equity shares.                                                       7. Managerial remuneration
Statutory disclosures as required by the Regulations                          The details of the managerial remuneration included in
2 Contingent Liabilities                                                      employee remuneration and welfare benefits are as follows:
                                                            (Rupees ‘000)                                                             (Rupees ‘000)
 Particulars                                  As at 31st As at 31st            Particulars                 st
                                                                                                        31 March 2007                st
                                                                                                                                    31 March 2006
                                            March 2007 March 2006
                                                                               Salary                                  6,850                    6,850
 Partly-paid up investments                         3,840          6,699
                                                                               Perquisites                              447                       488
 Underwriting commitments
 outstanding                                          Nil              Nil    The managerial remuneration is in accordance with the
 Claims, other than those under                                               approval accorded by a resolution of the Board of Directors,
 policies, not acknowledged as debts                 375             138      a copy of which has been filed with the IRDA as required
 Guarantees given by or on behalf of                                          under Section 34A of the Insurance Act,1938.
 the company                                          Nil              Nil    8. Actuarial Valuation
 Statutory demands/liabilities in
                                                                              Liabilities for life policies are determined by the Appointed
 dispute, not provided for *                        7,064          7,064
                                                                              Actuary in accordance with IRDA regulations and relevant
 Reinsurance obligations to the
                                                                              guidance notes of the Actuarial Society of India.
 extent not provided for in accounts                  Nil              Nil
 Claims, under policies,                                                      Non-linked business is reserved using a prospective gross
 not acknowledged as debts                         29,952         11,437      premium method of valuation. The non-linked business is
                                                                              predominantly participating and reserves are established
* The Service Tax department has issued an order on the
                                                                              having regard to assumptions as to future experience,
Company for Rs. 7,064 and applicable interest and
                                                                              including the interest that will be earned on premiums not
penalty, pertaining to the period August 2002 to
                                                                              yet received, together with associated bonus rates. Regular
31st December 2004. The Company has filed an appeal against
                                                                              premium participating business is reserved using an interest
the order with the Customs, Excise and Service Tax Appellate
                                                                              rate of 7.50% per annum which compares with a rate of
Tribunal.
                                                                              7.25% per annum used at 31st March 2006.
3. The assets of the Company, as in the previous year, are
                                                                              Single premium participating business is reserved using a
   free from all encumbrances. There are no assets subject
                                                                              rate of 6.25% per annum, which is same as used at 31st
   to restructuring.
                                                                              March 2006. The rate is determined after having regard to
4. There are no commitments made and outstanding for                          the yield being obtained on relevant matching assets.
   loans and investments. The commitments made and
                                                                              Assumptions as to future bonus rates are set to be
   outstanding for fixed assets amount to Rs. 13,163
                                                                              consistent with the interest rate assumptions. Provision
   (Previous Year Rs. 20,872) (net of advances).
                                                                              has been made for a bonus distribution in respect of business
5. Value of unsettled contracts relating to investments as                    in force at the valuation date on a basis considered
   at 31st March 2007 for:                                                    appropriate by the Appointed Actuary having taken into
                                                              (Rupees ‘000)   account the reasonable expectations of policyholders.

                                 Linked Business      Non-linked Business     Linked business is reserved using the per unit net asset
                                                                              value of units plus a non-unit reserve to allow for costs of
                              31st March 31st March 31st March 31st March
                                                                              insurance and any expenses and commissions in excess of
                                    2007       2006       2007       2006
                                                                              future charges.
 Purchases where deliveries
                                                                              Mortality assumptions are based on the published LIC (1994-
 are pending                   581,521    495,569           NIL    47,874
                                                                              1996) Ultimate Mortality Table with adjustment to reflect
 Sales where receipts are                                                     expected experience and with an allowance for adverse
 overdue                       279,255    100,726      52,143          NIL    deviation.
46




     Assumptions for morbidity and for the incidence of              12.Percentage of business sector-wise
     accidental death are based on terms available from
     reinsurers and the standard morbidity rate table CIBT (94-                             Current Year                          Previous Year
     96).                                                                               Number        Percentage           Number           Percentage
                                                                                       of Policies     of policies        of Policies        of policies
     The reserve is sufficient to allow for any adverse lapse
                                                                      Rural             431,765           20.77%           133,068            17.03%
     experience. The reserve is always sufficient to meet
     minimum statutory surrender values.                              Urban            1,647,168          79.23%           648,416            82.97%
                                                                                            Current Year                          Previous Year
     Commission has been allowed for at the Company’s table
     rates with an allowance for service tax. Maintenance                                No. of            No of            No. of             No of
     expenses have been allowed for in accordance with business                          Lives            Policies          Lives             Policies
     plan assumptions and product filings with the IRDA. An           Social            224,093              9             122,806               6
     additional reserve has been included to allow for possible
     adverse deviations in experience in excess of offsetting        13.Percentage of risk retained and risks reinsured
     adjustments in bonus rates and to allow for the contingency
                                                                                                                                             (Rupees ‘000)
     of closure to new business as is required by guidance notes
     (GN1) issued by the Actuarial Society of India.                  Particulars                 Current Year                        Previous Year

     There is a small amount of Group Term business at the                                  Sum at risk    Percentage         Sum at risk     Percentage
     valuation date, reserves for which have been calculated          Risk retained       687,500,808            80.78%      172,086,898             64.98%
     having regard to the unearned gross premium and expenses
                                                                      Risk reinsured      163,577,192            19.22%       92,752,300             35.02%
     already incurred.
     Provision has been made for the possible revival of policies    14.During the year the shareholders transferred funds to
     which have lapsed before the valuation date, having regard         Policyholders’ Account, to make good the deficit, which
     to the experience of the Company. As per IRDA Circular No.         existed in the Policyholders’ Account and transfer to
     041/IRDA/ACTL/MAR-2006 dated 29th March 2006, a reserve            the statutory reserve. The transfer by the shareholders
     for lapsed unit linked policies not likely to be revived is        is irreversible in nature and shall not be recouped by
     held as a separate item under the head “Funds for future           the shareholders in the future. The necessary approvals
     appropriations”.                                                   of the shareholders for the said transfer has been taken
     The Appointed Actuary is satisfied that the nature and extent      at the Extra Ordinary General Meeting of the
     of reinsurance arrangements require no additional reserve          shareholders held on 11th May 2007.
     to be set aside. All reserves have been calculated using        15.Reinsurance is in place on lives where cover is in excess
     gross exposure and gross office premiums.                          of the Company’s retention limit and this has been
     The Appointed Actuary confirms, as is required by the IRDA,        reflected in the Accounts.
     that the reserve is sufficient to provide for adverse ‘free     16.As per Accounting Standard 18 issued by the Institute
     look’ experience based on assumptions and experience.              of Chartered Accountants of India, disclosures of
                                                                        transactions with the related parties have been set out
     9. Claims                                                          in a separate statement annexed to this schedule as
     Claims settled and remaining unpaid for a period of more           Appendix I. The related parties, in respect of which
     than six months at year-end amount to Rs. Nil (Previous            the disclosures have been made, have been identified
     Year: Rs. Nil.)                                                    on the basis of disclosures made by the key managerial
                                                                        persons and taken on record by the Board of Directors.
     10.Allocation of expenses                                       17. In accordance with Accounting Standard (AS 20) – on
     Operating expenses relating to insurance business are              Earnings per Share (EPS), the following table reconciles
     allocated to specific business segments as under:                  the numerator and denominator used to calculate basic/
                                                                        diluted earnings per share.
     (a) Expenses, which are directly identifiable, are allocated                                                            st                 st
         on an actual basis                                                                                                31 March           31 March
                                                                                                                               2007               2006
     (b) Other operating expenses, which are not directly
         identifiable are apportioned based on a combination          Profit/(Loss) after tax (Rs.‘000)                     (717,033)          (985,442)
         of:                                                          Basic earnings before extra-ordinary
        •   New Business Regular Premium;                             items [A] (Rs.‘000)                                   (717,033)          (985,442)

        •   New Business Single Premium; and                          Basic earnings after extra-ordinary
                                                                      items [B] (Rs. ‘000)                                  (717,033)          (985,442)
        •   Renewal Premium
                                                                      Weighted average no. of equity shares
     11.Expenses directly attributable to shareholders are            (par value of Rs. 10 each) [C]                      150,250,730        150,105,912
        charged to the Shareholders’ Account.                         Basic earnings per share [A/C] (Rs)                         (4.77)              (6.56)
                                                                      Basic earnings per share excluding
                                                                      extraordinary items [B/C] (Rs)                              (4.77)              (6.56)
                                                                                                                                    47




As there were no dilutive equity shares issued, or potential        i) There are no transactions in the nature of sub leases.
equity shares, no reconciliation between the denominator
                                                                    ii) Payments recognized in the Revenue Account for the
used for computation of basic and diluted earnings per                               st
                                                                        year ended 31 March 2007, is Rs.215,236 (Previous Year
share is necessary.
                                                                        Rs.117,695).
18. Operating lease commitments                                     iii) The period of agreement is generally for three years
                                                                         and renewable thereafter at the option of the lessee.
The Company has entered into agreements in the nature
of Lease/ Leave and Licence Agreements with different               19.i) Previous year’s figures have been re-grouped / re-
lessors / licensors for the purpose of establishment of office            classified / re-cast wherever necessary to conform
premises. These are generally in the nature of operating                  with current year’s presentation.
leases/ leave and licenses and disclosure required as per
                                                                       ii) Vide Circular No. 054/IRDA/F & A/FEB-07 dated
Accounting Standard 19 with regard to the above is as
                                                                           February 20th, 2007, IRDA issued instructions for Unit
under:
                                                                           Linked Disclosure norms. Further vide Circular No.
                                                    (Rupees ‘000)          IRDA/F&A/001/Apr-07 dated April 16th, 2007, IRDA
                                       st               st                 granted relaxation from the disclosure of figures of
                                    31 March          31 March
                                                                           corresponding previous year while preparing the
                                        2007              2006
                                                                           financial statements for the year ended 31st March
 Not later than one year              209,576           122,855            2007. In compliance of the same, figures of
 Later than one year not later                                             corresponding previous year for unit linked business
 than five years                      238,375           182,598            are not disclosed as per the new format.
 Later than five years                      6,511        16,015     All amounts disclosed in the notes and footnotes to the
                                                                    financial statements are in rupees in thousands.
48




     Schedules forming part of the financial statements for the year ended on 31st March 2007 (continued)

     Schedule - 20 : Segment Reporting
     The Company’s reportable segments are business segments which have been identified in accordance with the regulations.
     The operating expenses, investments and other income attributable to the business segments are allocated as mentioned in
     Paragraph 10 above. Segment revenues and results have been disclosed in the Financial Statements itself. Segment assets
     and liabilities have been identified to the extent possible in the following table. There are no reportable geographical
     segments since the Company provides services to customers in the Indian market only and does not distinguish any reportable
     regions within India.



                                                                                              Current Year    Participating Policyholders’
     Particulars                                                                                      Total      Individual     Individual
                                                                                                                Assurance        Pension

     Policy Liabilities                                                                          6,712,906       5,493,958        211,463

     Provision for linked liabilities                                                          51,868,401                 -              -

     Funds for Future Appropriations                                                               670,923         585,104           4,383

     Reserve for lapsed unit linked policies unlikely to be revived                              1,358,813                -              -

     Loans                                                                                          18,630          18,627              3

     Investments                                                                               15,587,258        6,162,724        220,101

     Assets Held to Cover Linked Liabilities                                                   51,868,401                 -              -

     Advances & Other Assets
     Outstanding Premium                                                                           310,762         295,819           5,780
     Due from Other Entities carrying on Insurance business                                          2,933           2,009               -
     Income accrued on investments                                                                 248,188         132,450           1,976
     Other Assets                                                                                  292,594                -              -
     Current Liabilities
     Agents Balance                                                                              1,817,710          81,661            283
     Balance due to other Insurance Companies                                                       81,844          23,632            381
     Sundry Creditors                                                                            4,359,434          17,267            375
     Due to Officers of the Company                                                                  6,249                -              -
     Claims Outstanding                                                                            110,639          29,194            209
     Premium received in advance                                                                   111,184           4,104             59
     Premium & Other Deposits                                                                    1,552,322         146,943           2,102
     Temporary overdraft as per books of accounts                                                   53,665                -              -


     Fixed assets are not identifiable to any particular business segment. Depreciation has been allocated based on the assumption
     that the use of assets is proportional to the basis referred to in Note 10(b) of Schedule 16.
                                                                                                                                      49




                                                                                                              (Amount in Rs. ‘000 )

 Non-Participating Policyholders’                          Linked Linked Policyholders’              Shareholders’   Unallocated
Individual     Individual           Group     Individual       Individual Group Super-     Group
Assurance        Annuity     Assurance       Assurance          Pension     annuation     Gratuity

  154,036         43,243        198,175        591,016           21,015               -          -               -              -

         -              -                -   48,951,610        2,408,838        96,819    411,134                -              -

   50,961          7,019            23,456             -               -              -          -               -              -

         -              -                -    1,358,813                -              -          -               -              -

         -              -                -             -               -              -          -               -              -

  208,183         50,900        231,297       2,152,260          21,112          2,610      1,571        6,536,500              -

         -              -                -   48,951,610        2,408,838        96,819    411,134                -              -



    9,063            100                 -             -               -              -          -               -              -
         -              -                -          924                -              -          -               -              -
    3,136            259             4,737       33,379             198             35         83          71,935               -
         -              -                -             -               -              -          -               -       292,594


    2,224             47             2,826    1,717,320          13,337              5          7                -              -
    1,324             14             5,993       49,057            1,160            50        233                -              -
      364               -                -             -               -              -          -               -     4,341,428
         -              -                -             -               -              -          -               -         6,249
    2,229               -           37,932       40,737             338               -          -               -              -
       57               -                -     102,715             4,249              -          -               -              -
    8,220            304                 -      269,805          18,514               -          -               -     1,106,434
         -              -                -             -               -              -          -               -        53,665
50




     Schedules forming part of the financial statements for the year ended on 31st March 2007 (continued)

     Schedule - 20 : Segment Reporting
     The Company’s reportable segments are business segments which have been identified in accordance with the regulations.
     The operating expenses, investments and other income attributable to the business segments are allocated as mentioned in
     Paragraph 10 above. Segment revenues and results have been disclosed in the Financial Statements itself. Segment assets
     and liabilities have been identified to the extent possible in the following table. There are no reportable geographical
     segments since the Company provides services to customers in the Indian market only and does not distinguish any reportable
     regions within India.



                                                                                              Previous Year   Participating Policyholders’
     Particulars                                                                                      Total      Individual     Individual
                                                                                                                Assurance        Pension

     Policy Liabilities                                                                           4,043,047      3,336,963        150,520

     Provision for linked liabilities                                                            25,693,200               -              -

     Funds for Future Appropriations                                                                564,521        532,747               -

     Reserve for lapsed unit linked policies unlikely to be revived                                 117,739               -              -

     Loans                                                                                            3,406          3,406               -

     Investments                                                                                  7,546,991      3,893,622        150,722

     Assets Held to Cover Linked Liabilities                                                     25,693,200               -              -

     Advances & Other Assets
     Outstanding Premium                                                                            243,855       237,122            4,642
     Due from Other Entities carrying on Insurance business                                          15,516          2,542               -
     Income accrued on investments                                                                  148,571         73,408           1,171
     Other Assets                                                                                   354,948               -              -

     Current Liabilities
     Agents Balance                                                                                 710,607        106,341            345
     Balance due to other Insurance Companies                                                        25,093          8,104            135
     Payable Unsettled Investment Contracts                                                          47,874               -              -
     Sundry Creditors                                                                             1,671,612         21,267            734
     Due to Officers of the Company                                                                   1,814               -              -
     Claims Outstanding                                                                              82,131         30,101               -
     Premium received in advance                                                                     16,928         16,400            399
     Premium & Other Deposits                                                                     1,058,086               -              -
     Temporary overdraft as per books of accounts                                                   276,339               -              -

     Fixed assets are not identifiable to any particular business segment. Depreciation has been allocated based on the assumption
     that the use of assets is proportional to the basis referred to in Note 10(b) of Schedule 16.
                                                                                                                                     51




                                                                                                             (Amount in Rs. ‘000 )

 Non-Participating Policyholders’                         Linked Linked Policyholders’              Shareholders’   Unallocated
Individual     Individual           Group    Individual       Individual Group Super-     Group
Assurance        Annuity     Assurance      Assurance          Pension     annuation     Gratuity

  114,511         30,065        126,751       280,453             3,583            57        144                -              -

         -              -               -   24,528,719        1,018,791        41,131    104,559                -              -

   27,437               -           3,665             -               -           672           -               -              -

         -              -               -     117,739                 -              -          -               -              -

         -              -               -             -               -              -          -               -              -

  142,148         30,478        138,174       400,149             9,352         1,134        344        2,780,868              -

         -              -               -   24,528,719        1,018,791        41,131    104,559                -              -



    1,991            100                -             -               -              -          -               -              -
      460               -               -       12,514                -              -          -               -              -
    1,410            118            2,242        7,934             182               -         4          58,225          3,877
         -              -               -             -               -              -          -               -       354,948



    3,017             43              827      592,015            7,999            13          7                -              -
      432               -           1,613       14,767               42              -          -               -              -
         -              -               -             -               -              -          -         47,874               -
       32               -               -             -               -              -          -               -     1,649,579
         -              -               -             -               -              -          -               -         1,814
    3,377               -           8,306       40,347                -              -          -               -              -
      129               -               -             -               -              -          -               -              -
         -              -               -             -               -              -          -               -     1,058,086
         -              -               -             -               -              -          -               -       276,339
52




     Schedules forming part of financial statements for the year ended 31st March 2007

     Schedule - 21 : Summary of Financial Statements
                                                                                                                  (Amount in Rs. ‘000 )
     Sr.    Particulars                                         2006-07      2005-06     2004-05     2003-04     2002-03      2001-02
                                                                    ****                                                           ***
            Policyholders’ Account
     1      Gross premium income                             53,099,971 31,335,778 10,016,752       2,207,985    691,749       71,389
     2      Net premium income #                             53,007,376 31,282,213      9,980,307   2,192,521    686,197       70,255
     3      Income from investments (Net) @                   3,096,821      312,417      84,409      45,178      14,916             -
     4      Other Income                                      1,377,045    1,375,771     504,221     413,529     408,345             -
     5      Total income                                     57,481,242 32,970,401 10,568,937       2,651,229   1,109,458     310,312
     6      Commissions (Net)                                 9,466,813    3,418,670    1,458,351    504,424     124,227       23,517
     7      Brokerage                                                  -            -           -           -           -            -
     8      Operating Expenses related to insurance
            business                                         10,730,189    4,868,110    2,154,636   1,323,717    667,177      251,079
     9      Provisions for tax (Fringe Benefit Tax)              73,054       41,020            -           -           -            -
     10     Total Expenses                                   20,270,056    8,327,800    3,612,987   1,828,141    791,404      274,596
     11     Payment to policy holders*                        6,987,345    6,536,048     565,451       27,917      3,658             -
     12     Increase in actuarial liability**                28,845,062 17,488,362      6,416,858    745,854     274,887       34,113
     13     Surplus / (Deficit) from operations               1,378,779      618,191     (26,359)     49,317      39,509        1,603

            Shareholders’ Account
     14     Total income under Shareholders’
            Account                                             277,123      106,879      88,271     135,934     138,519      104,034
     15     Profit / (loss) before tax                        (717,006)    (985,406)    (367,515)   (268,073)   (265,486)   (156,386)
     16     Provisions for tax                                       27           36          44          57          44           50
     17     Profit / (loss) after tax                         (717,033)    (985,442)    (367,559)   (268,130)   (265,530)   (156,435)
     18     Profit / loss carried to Balance Sheet           (2,760,129) (2,043,096) (1,057,654)    (690,095)   (421,965)            -
     19     Miscellaneous
            (A) Policyholders’ account:
                Total funds (including unit linked funds)    60,626,486 30,431,495      7,736,819   1,144,717    350,112       35,716
               Total investments
               (including unit linked investments)           60,919,159 30,459,323      7,736,825   1,144,717    350,112       35,716
               Yield on investments (%)
               (excluding unit linked investments)                7.17%        9.80%       7.20%       9.68%      12.01%       12.07%
            (B) Shareholders’ account:
               Total funds                                    4,245,236    2,955,263    1,616,518   1,790,826   1,562,173   1,330,843
               (net of debit balance in Profit & Loss A/C)
               Total investments                              6,536,500    2,780,868    1,636,972   1,407,573   1,287,859   1,098,542
               Yield on investments (%)                           7.36%        5.80%       5.60%       9.68%      12.01%       12.07%
     20     Yield on total investments                            7.24%        8.40%       6.30%       9.68%      12.01%       12.07%
            (excluding unit linked investments)
     21     Paid up equity capital                            1,503,680    1,502,338    1,500,787   1,500,660   1,500,330   1,500,000
     22     Net worth                                         4,245,236    2,955,263    1,616,518   1,790,826   1,562,173   1,330,843
     23     Total Assets                                     64,871,722 33,386,758      9,353,337   2,935,543   1,912,285   1,366,558
            (net of debit balance in Profit & Loss A/C)
     24     Earning per share (Rs.)                               (4.77)       (6.56)      (2.45)      (1.79)      (1.77)       (1.56)
     25     Book value per share (Rs.)                            28.23        19.67       10.77       11.93       10.40         8.87

     #      Net of reinsurance
     @      Net of losses
     *      Inclusive of interim bonuses, if any
     **     Includes fund reserve since 2003-04
     ***    Figures are only for six months
     ****   Refer Schedule 16 Note 19
                                                                                                                             53




Schedules forming part of financial statements for the year ended 31st March 2007

Schedule - 22 : Ratios (Expressed in number of times)

                                                                                              2006-07           2005-06
1     New business premium income growth (segment-wise)
      (New business premium for current year divided by
      new business premium for previous year)
      Participating                                                                               0.70              1.23
      Non Participating                                                                           1.62              3.45
2     Net retention ratio                                                                        0.998             0.998
      (Net premium divided by gross premium)
3     Ratio of expenses of management                                                             0.20              0.16
      (Expenses of management divided by the total gross direct
      premium with Single Premium)
4     Ratio of expenses of management                                                             0.26              0.30
      (Expenses of management divided by the total gross direct
      premium without Single Premium)
5     Commission ratio                                                                            0.18              0.11
      (Gross Commission paid to Gross premium)
6     Ratio of Policyholders’ liabilities to Shareholders’ funds                                 14.28             10.30
7     Growth rate of Shareholders’ funds                                                          1.44              1.83
8     Ratio of surplus to Policyholders’ liability (*)                                            0.02              0.02
9     Change in net worth                                                                         1.44              1.83
10    Profit after tax/ Total income                                                                  -                -
11    (Total Real Estate + Loans) / Cash & invested assets                                       0.004             0.005
12    Total investments / (Capital + Surplus)                                                    15.89             11.25
13    Total affiliated investments / (Capital + Surplus)                                              -                -

* Surplus includes Contribution from Shareholders’ Account




23.    The Revenue Account and Balance Sheet for unit linked business has been annexed to this schedule as Appendix II.
       Disclosure for ULIP Business as per Unit Linked Disclosure Norms has been annexed to this schedule as Appendix III.




For Bajaj Allianz Life Insurance Company Limited

Heinz Dollberg                       Sanjiv Bajaj                  Craig Ellis                Ranjit Gupta
Director                             Director                      Director                   Director

Sam Ghosh                            Rajesh Viswanathan            Andrew Wakeling            Sameer Bakshi
Chief Executive Officer              Chief Financial Officer       Appointed Actuary          Company Secretary

Place: Pune
Date: 11th May 2007
54




     Schedules forming part of financial statements for the year ended 31st March 2007

     Related Party Disclosures                                                                      Appendix I Refer Schedule 16 Note 16
                                                                                                                            (Amount in Rs. ‘000)
     Sr. Related Party      Relationship                      Current Year                                      Previous Year
     No.                                     Amount    Nature of                     Balance    Amount    Nature of                      Balance
                                                       Transaction               Outstanding              Transaction               Outstanding
                                                                                   as at 31st                                         as at 31st
                                                                                  March 2007                                         March 2006
                                                                                 Receivable/                                        Receivable /
                                                                                    (Payable)                                          (Payable)
      1   Bajaj Auto Ltd.   Holding             118    Lease rent expense                   -      126    Lease rent expense
                            Company                    of premises                                        of premises
                                                 14    Reimbursement                        -       14    Reimbursement
                                                       made of Revenue                                    made of Revenue
                                                       expenditure                                        expenditure
                                                993    Subscription to                      -     1,148   Subscription to
                                                       Equity Capital at par                              Equity Capital at par                -
                                              4,202    Deputation expenses                  -     2,698   Deputation expenses
                                                       of Chief Investment                                of Chief Investment
                                                       Officer                                            Officer                              -
                                              1,500    Insurance Premium                    -     1,260   Insurance Premium                    -
                                                       received                                           received
                                              1,240    Insurance Claims                     -     1,054   Insurance Claims
                                                       paid                                               paid                                 -
                                            353,499    Purchase of                          -         -   Purchase of
                                                       Investments                                        Investments                          -
      2   Bajaj Auto        Group               118    Lease rent expense                   -      126    Lease rent expense
          Finance Ltd.      Company                    of premises                                        of premises                          -
                                                 20    Society expenses                     -       13    Society expenses
                                                       reimbursed                                         reimbursed                           -
                                                832    Insurance Premium                    -      417    Insurance Premium                    -
                                                       received                                           received
      3   Bajaj Allianz     Group             3,164    Reimbursement                        -     5,141   Reimbursement
          General           Company                    received of Revenue                                received of Revenue
          Insurance                                    and Capital expenditure                            and Capital expenditure              -
          Co. Ltd                            14,422    Reimbursement                        -    18,795   Reimbursement
                                                       made of Revenue and                                made of Revenue and
                                                       Capital expenditure                                Capital expenditure                  -
                                              7,304    Insurance Premium                    -     4,143   Insurance Premium
                                                       payment                                            payment                              -
                                              2,674    Insurance Premium                    -     1,209   Insurance Premium
                                                       received                                           received                             -
                                                110    Insurance claims                     -      297    Insurance claims
                                                       received                                           received                             -
                                             54,074    Sale of Investments                  -   308,495   Sale of Investments                  -
                                             49,647    Purchase of                          -   447,312   Purchase of
                                                       Investments                                        Investments                          -
      4   Allianz Insurance Group                  -   Reimbursement                        -      446    Reimbursement
          Management        Company                    received of Revenue                                received of Revenue
          Asia Pacific Pte.                            expenditure                                        expenditure                          -
          Ltd.                                2,108    Reimbursement                  (1,015)         -   Reimbursement
                                                       made of Revenue                                    made of Revenue
                                                       expenditure                                        expenditure                          -
      5   Allianz SE        Shareholder      32,125    Revenue expenditure          (31,326)      9,782   Revenue expenditure
                                                       for OPUS                                           for OPUS                             -
                                           2,006,639   Subscription to                      - 2,319,148   Subscription to
                                                       equity capital                                     equity capital                       -
      6   Allianz SE        Group            40,932    Reinsurance                  (40,932)     23,817   Reinsurance                  (34,198)
          Reinsurance       Company                    premium payable                                    premium payable
          Branch Asia                        15,212    Reinsurance claims             15,212      7,959   Reinsurance claims             17,430
          Pacific                                      receivable                                         receivable
                                              4,423    Reinsurance                     4,423      3,799   Reinsurance                     5,906
                                                       Commission                                         commission
                                                       receivable                                         receivable
      7   Sam Ghosh         Key               7,297    Remuneration                   (6,249)     7,338   Remuneration                   (1,814)
                            Management
                            Personnel
      8   Hind Musafir      Group                24    Commission on                        -       35    Commission on
          Agency Ltd.       Company                    Travel Expenses                                    Travel Expenses                      -
Appendix II Refer Schedule 16 Note 23        Form A-RA (UL)
                                                                                  Fund Revenue Account for the year ended 31st March 2007
                                                                                                                                                                           (Amount in Rs. ‘000)
Particulars                                          Schedule       Acc Mid     Acc Mid Cap    Accelerated        Balance    Balance Plus   Balanced    Balancer       Balancer           Bond
                                                                   Cap Fund    Pension Fund           Fund          Fund    Pension Fund    Plus Fund       Fund   Pension Fund   Pension Fund
INCOME FROM INVESTMENTS
Interest Income                                                          211             62            1,907            -               -           -          -              -           731
Dividend Income                                                        1,918            271              265            -               -           -          -              -              -
Profit/(Loss) excluding inter scheme                                   2,111            993            (420)            -               -           -          -              -             12
Profit/(Loss) on inter fund transfer/sale of investment                4,492          2,459            (207)            -               -           -          -              -           (88)
Miscellaneous Income                                                   1,976            256              384            -               -           -          -              -           212
Unrealised Gain/(Loss)                                              (16,252)        (1,885)            1,283            -               -           -          -              -           (91)
              Total Income (A)                                       (5,544)          2,156            3,212            -               -           -          -              -           776
EXPENSES
Fund Management Expenses                                              2,676             462              456            -               -           -          -              -           107
Fund Administration Expenses                                              -               -                -            -               -           -          -              -             -
Other charges                                             F -5            -               -                -            -               -           -          -              -             -
              Total Expenses (B)                                      2,676             462              456            -               -           -          -              -           107
Net Income/(Loss) for the Year (A-B)                                 (8,220)          1,694            2,756            -               -           -          -              -           669
Add: Revenue Account at the beginning of the year                          -              -            1,450            -               -           -          -              -             -
Fund Revenue Account at the end of the year                          (8,220)          1,694            4,206            -               -           -          -              -           669


FORM A-BS (UL)
                                                                                                Fund Balance Sheet as at 31st March 2007
                                                                                                                                                                           (Amount in Rs. ‘000)
Particulars                                          Schedule       Acc Mid     Acc Mid Cap    Accelerated        Balance    Balance Plus   Balanced    Balancer       Balancer           Bond
                                                                   Cap Fund    Pension Fund           Fund          Fund    Pension Fund    Plus Fund       Fund   Pension Fund   Pension Fund
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                               F -1      734,228          73,779            63,872   1,453,288        100,612    1,025,948    35,054          6,586         34,571
Revenue Account                                                      (8,220)          1,694             4,206           -              -            -         -              -            669
              Total                                                 726,008          75,473            68,078   1,453,288        100,612    1,025,948    35,054          6,586         35,240
APPLICATION OF FUNDS
Investments                                               F -2      599,233          64,937            64,726   1,453,217        100,610    1,025,939    35,054          6,586         22,547
Current Assets                                            F -3      148,302          11,124             3,372          71              2            9         -              -         12,695
Less : Current Liabilities and Provisions                 F -4       21,527             588                20           -              -            -         -              -              2
Net Current Assets                                                  126,775          10,536             3,352          71              2            9         -              -         12,693
              Total                                                 726,008          75,473            68,078   1,453,288        100,612    1,025,948    35,054          6,586         35,240
(a) Net Assets as per Balance Sheet (Rs. in thousands)              726,008          75,473            68,078   1,453,288        100,612    1,025,948    35,054          6,586         35,240
(b) Number of Units Outstanding (in thousands)                       59,477           6,361             5,602     105,264          6,933       66,677     3,131            592          3,368

Net Asset Value per unit (a)/(b) (Rs.) *                             12.207          11.865            12.153     13.806          14.512      15.387     11.195         11.130         10.463
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.
                                                                                                                                                                                                  55
                                                                                                                                                                                          56

Appendix II Refer Schedule 16 Note 23        Form A-RA (UL)
                                                                                  Fund Revenue Account for the year ended 31st March 2007
                                                                                                                                                                   (Amount in Rs. ‘000)
Particulars                                          Schedule        Capital        Capital        Capital        Cash    Cash Plus   Cash Plus      Debt    Debt Plus     Debt Plus
                                                                  Guarantee      Guarantee      Guarantee         Fund        Fund     Pension       Fund       Fund        Pension
                                                                  Fund 2012      Fund 2014      Fund 2017                                 Fund                                Fund
INCOME FROM INVESTMENTS
Interest Income                                                          334             17               152    15,349     47,311       2,129      77,430     62,362          5,822
Dividend Income                                                           23              2                29         -          -            -          -          -              -
Profit/(Loss) excluding inter scheme                                      39             11                59     (908)      (903)         211    (12,010)    (5,365)          (336)
Profit/(Loss) on inter fund transfer/sale of investment                    1            (1)                 -     (545)      (738)       (102)    (10,149)    (6,347)          (391)
Miscellaneous Income                                                      65              -                27    46,601    109,744       6,754       6,073      6,192          1,321
Unrealised Gain/(Loss)                                                 (472)          (101)             (416)     1,346      2,528          (4)    (4,428)    (9,137)          (571)
              Total Income (A)                                          (10)           (72)             (149)    61,843    157,942       8,988     56,916      47,705          5,845
EXPENSES
Fund Management Expenses                                                  84              6               50      8,200     14,410         820     10,136       6,414            671
Fund Administration Expenses                                               -              -                -     10,250          -           -     12,670           -              -
Other charges                                             F -5             -              -                -        115        274          60         34         127             54
              Total Expenses (B)                                          84              6               50     18,565     14,684         880     22,840       6,541            725
Net Income/(Loss) for the Year (A-B)                                    (94)           (78)             (199)    43,278    143,258       8,108     34,076      41,164          5,120
Add: Revenue Account at the beginning of the year                          -              -                 -    23,159     76,824       2,307     15,139      17,914          2,086
Fund Revenue Account at the end of the year                             (94)           (78)             (199)    66,437    220,082      10,415     49,215      59,078          7,206


FORM A-BS (UL)
                                                                                                Fund Balance Sheet as at 31st March 2007
                                                                                                                                                                   (Amount in Rs. ‘000)
Particulars                                          Schedule        Capital        Capital        Capital        Cash    Cash Plus   Cash Plus      Debt    Debt Plus     Debt Plus
                                                                  Guarantee      Guarantee      Guarantee         Fund        Fund     Pension       Fund       Fund        Pension
                                                                  Fund 2012      Fund 2014      Fund 2017                                 Fund                                Fund
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                               F -1       83,046           5,829            40,789   871,588   1,546,671    116,683    414,657     611,762         52,059
Revenue Account                                                        (94)            (78)             (199)    66,437     220,082     10,415     49,215      59,078          7,206
              Total                                                  82,952           5,751            40,590   938,025   1,766,753    127,098    463,872     670,840         59,265
APPLICATION OF FUNDS
Investments                                               F -2       61,370           4,110            33,753   899,229   1,655,624    122,781    393,295     428,126         53,421
Current Assets                                            F -3       21,635           1,657             6,855    38,994     111,352      4,347     70,819     242,803          5,868
Less : Current Liabilities and Provisions                 F -4           53              16                18       198         223         30        242          89             24
Net Current Assets                                                   21,582           1,641             6,837    38,796     111,129      4,317     70,577     242,714          5,844
              Total                                                  82,952           5,751            40,590   938,025   1,766,753    127,098    463,872     670,840         59,265
(a) Net Assets as per Balance Sheet (Rs. in thousands)               82,952           5,751            40,590   938,025   1,766,753    127,098    463,872     670,840         59,265
(b) Number of Units Outstanding (in thousands)                        8,313             588             4,082    83,728     152,070     11,072     43,510      60,543          5,248
Net Asset Value per unit (a)/(b) (Rs.) *                              9.979           9.771             9.945    11.203      11.618     11.479     10.661      11.080         11.292
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.
Appendix II Refer Schedule 16 Note 23        Form A-RA (UL)
                                                                                  Fund Revenue Account for the year ended 31st March 2007
                                                                                                                                                                                 (Amount in Rs. ‘000)
Particulars                                          Schedule    Eq. Growth      Eq. Midcap     Eq. Midcap        Eq.Midcap        Eq. Gain        Eq.     Eq. Growth     Eq. Index       Eq. Index
                                                                       Fund       Plus Fund           Fund      Pension Fund          Fund        Fund    Pension Fund         Fund    Pension Fund
INCOME FROM INVESTMENTS
Interest Income                                                        6,017          8,468          2,258               206         13,965        215             274          251             13
Dividend Income                                                       24,671         26,073         11,815             1,663         60,169     51,563           1,947       26,770          2,258
Profit/(Loss) excluding inter scheme                                (42,346)        271,778        150,924            17,894        484,184    137,294           1,829       25,376          4,446
Profit/(Loss) on inter fund transfer/sale of investment                3,286         81,381         22,540             7,215        100,645     76,850         (4,994)       54,322          7,317
Miscellaneous Income                                                  25,470          7,418          6,159               762         25,997        714           2,144          606             57
Unrealised Gain/(Loss)                                              (61,518)      (305,984)      (140,191)          (19,037)      (268,228)    151,523           1,087       85,916          4,027
              Total Income (A)                                      (44,420)         89,134            53,505         8,703        416,732     418,159          2,287       193,241         18,118
EXPENSES
Fund Management Expenses                                              35,261         26,354            12,872          1,699        71,369      30,346          3,179        15,709          1,315
Fund Administration Expenses                                               -              -            10,726              -        59,475      37,932              -             -              -
Other charges                                             F -5             -            316                30             63           838         471              -           332             57
              Total Expenses (B)                                      35,261         26,670            23,628          1,762       131,682      68,749          3,179        16,041          1,372
Net Income/(Loss) for the Year (A-B)                                (79,681)         62,464         29,877            6,941         285,050     349,410          (892)      177,200         16,746
Add: Revenue Account at the beginning of the year                          -        457,855        214,556           28,007         958,246     914,673              -      261,954         30,578
Fund Revenue Account at the end of the year                         (79,681)        520,319        244,433           34,948       1,243,296   1,264,083          (892)      439,154         47,324


FORM A-BS (UL)
                                                                                                Fund Balance Sheet as at 31st March 2007
                                                                                                                                                                                 (Amount in Rs. ‘000)
Particulars                                          Schedule    Eq. Growth      Eq. Midcap     Eq. Midcap        Eq. Midcap       Eq. Gain         Eq.      Eq. Growth   Eq. Index       Eq. Index
                                                                       Fund       Plus Fund           Fund      Pension Fund          Fund         Fund    Pension Fund        Fund    Pension Fund
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                               F -1    9,408,208       1,370,130        800,641           93,464       5,020,356   1,786,199        642,291      890,746         71,478
Revenue Account                                                     (79,681)        520,319        244,433           34,948       1,243,296   1,264,083          (892)      439,154         47,324
            Total                                                 9,328,527       1,890,449      1,045,074          128,412       6,263,652   3,050,282        641,399    1,329,900        118,802
APPLICATION OF FUNDS
Investments                                               F -2    7,792,671       1,778,536        993,014          118,118       5,975,776   3,028,089        527,515    1,404,363        112,035
Current Assets                                            F -3    1,681,673         128,033         60,998           11,395         320,309     116,068        123,455         1,544        11,230
Less : Current Liabilities and Provisions                 F -4      145,817          16,120          8,938            1,101          32,433      93,875          9,571        76,007         4,463
Net Current Assets                                                1,535,856         111,913         52,060           10,294         287,876      22,193        113,884      (74,463)         6,767
            Total                                                 9,328,527       1,890,449      1,045,074          128,412       6,263,652   3,050,282        641,399    1,329,900        118,802
(a) Net Assets as per Balance Sheet (Rs. in thousands)            9,328,527       1,890,449      1,045,074          128,412       6,263,652   3,050,282        641,399    1,329,900        118,802
(b) Number of Units Outstanding (in thousands)                      789,669         100,572         57,190            6,636         257,458     168,298         54,197        58,930         5,957
Net Asset Value per unit (a)/(b) (Rs.) *                             11.813          18.797         18.274           19.351          24.329      18.124         11.835        22.567        19.942
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.        ** ‘Eq. for Equity’
                                                                                                                                                                                                        57
                                                                                                                                                                                           58

Appendix II Refer Schedule 16 Note 23        Form A-RA (UL)
                                                                                  Fund Revenue Account for the year ended 31st March 2007
                                                                                                                                                                    (Amount in Rs. ‘000)
Particulars                                          Schedule            Eq.        Eq. Plus      Eq. Index         Income    Life Long    Liquid    Liquid       Nifty         Premier
                                                                        Plus        Pension         Pension           Bond         Gain     Fund    Pension      Index      Eq. Growth
                                                                       Fund           Fund           Fund-2           Fund         Fund               Fund        Fund             Fund
INCOME FROM INVESTMENTS
Interest Income                                                       24,968          1,343               41          8,213      5,466       134          6         365            628
Dividend Income                                                      120,636         10,221              634              -          -          -         -       8,536          4,648
Profit/(Loss) excluding inter scheme                                 962,604         78,726              272             63      (238)         16         2         856          6,372
Profit/(Loss) on inter fund transfer/sale of investment              132,690         15,031              468          (645)      (394)       (27)       (8)       2,313          4,166
Miscellaneous Income                                                  49,216          4,529               46          2,068        516     1,944       373          990          5,378
Unrealised Gain/(Loss)                                             (491,991)       (22,661)            2,334        (3,457)      (783)          -         -    (14,247)         17,045
              Total Income (A)                                      798,123          87,189            3,795          6,242      4,567     2,067       373      (1,187)         38,237
EXPENSES
Fund Management Expenses                                            144,106          12,219             508           1,169        748       235        44       6,315          12,391
Fund Administration Expenses                                              -               -               -               -        935         -         -           -               -
Other charges                                             F -5        2,019             134               -               -         50         -         -           -               -
              Total Expenses (B)                                    146,125          12,353             508           1,169      1,733       235        44       6,315          12,391
Net Income/(Loss) for the Year (A-B)                                651,998          74,836            3,287          5,073      2,834     1,832       329      (7,502)         25,846
Add: Revenue Account at the beginning of the year                 1,579,994         115,105                -              -        397         -         -            -              -
Fund Revenue Account at the end of the year                       2,231,992         189,941            3,287          5,073      3,231     1,832       329      (7,502)         25,846


FORM A-BS (UL)
                                                                                                Fund Balance Sheet as at 31st March 2007
                                                                                                                                                                    (Amount in Rs. ‘000)
Particulars                                          Schedule            Eq.        Eq. Plus      Eq. Index         Income    Life Long    Liquid    Liquid       Nifty         Premier
                                                                        Plus        Pension         Pension           Bond         Gain     Fund    Pension      Index      Eq. Growth
                                                                       Fund           Fund           Fund-2           Fund         Fund               Fund        Fund             Fund
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                               F -1    9,294,509         741,152        170,124         401,846     107,338    105,952     11,117   2,694,187       1,223,232
Revenue Account                                                   2,231,992         189,941          3,287           5,073       3,231      1,832        329      (7,502)         25,846
              Total                                              11,526,501         931,093        173,411         406,919     110,569    107,784     11,446   2,686,685       1,249,078
APPLICATION OF FUNDS
Investments                                               F -2   10,903,206         872,770        145,049         355,083     103,381     94,058      9,822   2,240,073       1,123,237
Current Assets                                            F -3      680,056          62,109         40,207          51,866       7,224     13,733      1,625     546,523         135,081
Less : Current Liabilities and Provisions                 F -4       56,761           3,786         11,845              30          36          7          1      99,911           9,240
Net Current Assets                                                  623,295          58,323         28,362          51,836       7,188     13,726      1,624     446,612         125,841
              Total                                              11,526,501         931,093        173,411         406,919     110,569    107,784     11,446   2,686,685       1,249,078
(a) Net Assets as per Balance Sheet (Rs. in thousands)           11,526,501         931,093        173,411         406,919     110,569    107,784     11,446   2,686,685       1,249,078
(b) Number of Units Outstanding (in thousands)                      460,081          42,365         14,304          39,074      11,179     10,251      1,092     217,461         103,953
Net Asset Value per unit (a)/(b) (Rs.) *                             25.053          21.978         12.123          10.414       9.891     10.514     10.483      12.355          12.016
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.    * ‘Eq. for Equity’
Appendix II Refer Schedule 16 Note 23        Form A-RA (UL)
                                                                                  Fund Revenue Account for the year ended 31st March 2007
                                                                                                                                                                     (Amount in Rs. ‘000)
Particulars                                          Schedule       Premier         Premier        Premier           Premier    Premier   Premier       Premier     Pure          Pure
                                                                   Balanced        Balancer           Debt               Eq.   Eq. Gain   Income    Nifty Index      Eq.         Stock
                                                                       Fund            Fund           Fund              Fund       Fund      Fund          Fund     Fund          Fund
INCOME FROM INVESTMENTS
Interest Income                                                            -               -            16,823            78     1,568     2,855            78          -            -
Dividend Income                                                            -               -                 -         8,506    10,952         -         2,023      3,833          516
Profit/(Loss) excluding inter scheme                                       -               -             (156)         2,964    45,771        42           790      8,083        1,274
Profit/(Loss) on inter fund transfer/sale of investment                    -               -           (1,334)        10,772     (671)     (288)         1,238      7,194        2,098
Miscellaneous Income                                                       -               -             1,647           101     4,561       844           125      2,806          565
Unrealised Gain/(Loss)                                                     -               -           (2,750)        48,324    12,126     (863)        10,764    (8,797)      (3,374)
              Total Income (A)                                             -               -           14,230         70,745    74,307     2,590        15,018     13,119        1,079
EXPENSES
Fund Management Expenses                                                   -               -            5,239         11,159    19,192     1,232         3,676     4,414           855
Fund Administration Expenses                                               -               -                -              -         -         -             -         -             -
Other charges                                             F -5             -               -               65             67        67         -             -        67             -
              Total Expenses (B)                                           -               -            5,304         11,226    19,259     1,232         3,676     4,481           855
Net Income/(Loss) for the Year (A-B)                                       -               -            8,926         59,519    55,048     1,358        11,342      8,638          224
Add: Revenue Account at the beginning of the year                          -               -              153         21,657    39,009         -             -     10,876            -
Fund Revenue Account at the end of the year                                -               -            9,079         81,176    94,057     1,358        11,342     19,514          224


FORM A-BS (UL)
                                                                                                Fund Balance Sheet as at 31st March 2007
                                                                                                                                                                     (Amount in Rs. ‘000)
Particulars                                          Schedule       Premier         Premier        Premier           Premier    Premier   Premier       Premier     Pure          Pure
                                                                   Balanced        Balancer           Debt               Eq.   Eq. Gain   Income    Nifty Index      Eq.         Stock
                                                                       Fund            Fund           Fund              Fund       Fund      Fund          Fund     Fund         Fund
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                               F -1        85,965         18,632        157,546           430,309   873,551    97,902       366,910    371,812     127,735
Revenue Account                                                            -              -          9,079            81,176    94,057     1,358        11,342     19,514         224
              Total                                                   85,965         18,632        166,625           511,485   967,608    99,260       378,252    391,326     127,959
APPLICATION OF FUNDS
Investments                                               F -2        85,965         18,632        165,894           511,344   960,988    93,698       358,205    360,013     115,591
Current Assets                                            F -3             -              -          4,568             5,386    14,121     5,586        35,300     32,952      12,897
Less : Current Liabilities and Provisions                 F -4             -              -          3,837             5,245     7,501        24        15,253      1,639         529
Net Current Assets                                                         -              -            731               141     6,620     5,562        20,047     31,313      12,368
              Total                                                   85,965         18,632        166,625           511,485   967,608    99,260       378,252    391,326     127,959
(a) Net Assets as per Balance Sheet (Rs. in thousands)               85,965          18,632        166,625           511,485   967,608    99,260       378,252    391,326     127,959
(b) Number of Units Outstanding (in thousands)                        7,370           1,712         15,796            38,423    73,001     9,641        30,981     32,142      11,292
Net Asset Value per unit (a)/(b) (Rs.) *                             11.664          10.886         10.549            13.312    13.255    10.296        12.209     12.175      11.332
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.      * ‘Eq. for Equity’
                                                                                                                                                                                            59
                                                                                                                              60

Appendix II Refer Schedule 16 Note 23       Form A-RA (UL)

               Fund Revenue Account for the year ended 31st March 2007
                                                                                                       (Amount in Rs. ‘000)
Particulars                                                      Schedule    Secure Fund     Stable Fund          Total
INCOME FROM INVESTMENTS
Interest Income                                                                      399           9,427        317,876
Dividend Income                                                                         3            260        380,205
Profit/(Loss) excluding inter scheme                                                 (30)          (964)      2,141,320
Profit/(Loss) on inter fund transfer/sale of investment                                23        (3,304)        506,268
Miscellaneous Income                                                                   76          1,126        325,843
Unrealised Gain/(Loss)                                                               (24)          2,313    (1,036,646)
              Total Income (A)                                                        447          8,858      2,634,866
EXPENSES
Fund Management Expenses                                                               72          1,479        467,649
Fund Administration Expenses                                                            -              -        131,988
Other charges                                                         F -5              -             67          5,307
              Total Expenses (B)                                                       72          1,546        604,944
Net Income/(Loss) for the Year (A-B)                                                  375          7,312      2,029,922
Add: Revenue Account at the beginning of the year                                      83          4,149      4,776,171
Fund Revenue Account at the end of the year                                           458         11,461      6,806,093


FORM A-BS (UL)

                             Fund Balance Sheet as at 31st March 2007
                                                                                                       (Amount in Rs. ‘000)
Particulars                                                      Schedule    Secure Fund     Stable Fund          Total
SOURCES OF FUNDS
Policy Holder’s Funds:
Policy Holders Contribution                                           F -1          5,845        422,109    45,062,308
Revenue Account                                                                       458         11,461     6,806,093
              Total                                                                 6,303        433,570    51,868,401
APPLICATION OF FUNDS
Investments                                                           F -2          6,173        428,194    47,706,051
Current Assets                                                        F -3            133          5,928     4,789,905
Less : Current Liabilities and Provisions                             F -4              3            552       627,555
Net Current Assets                                                                    130          5,376     4,162,350
              Total                                                                 6,303        433,570    51,868,401
(a) Net Assets as per Balance Sheet (Rs. in thousands)                             6,303         433,570    51,868,401
(b) Number of Units Outstanding (in thousands)                                       563          38,133
Net Asset Value per unit (a)/(b) (Rs.) *                                          11.189          11.370
*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.
Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                             SCHEDULE F1 : POLICYHOLDERS’ CONTRIBUTION
As at 31st March 2007                                                                                                                                            (Amount in Rs. ‘000)
Particulars                                 Acc Mid Cap    Acc Mid Cap      Accelerated     Balance   Balance Plus Balanced Plus    Balancer   Balancer        Bond        Capital
                                                   Fund        Pension             Fund        Fund       Pension          Fund         Fund    Pension      Pension    Guarantee
                                                                  Fund                                       Fund                                  Fund        Fund     Fund 2012
Opening Balance                                        -              -         35,862     870,296         67,784       732,365            -          -            -              -
Add : Addition during the year                  776,099         75,955          35,808    1,187,217       87,297        866,227      44,075       9,840      56,751         86,407
Less : Deduction during the year                 41,871          2,176           7,798     604,225         54,469       572,644       9,021       3,254      22,180          3,361
Closing Balance                                 734,228         73,779          63,872    1,453,288      100,612      1,025,948      35,054       6,586      34,571         83,046




Schedules to Fund Revenue Account

                                                                             SCHEDULE F1 : POLICYHOLDERS’ CONTRIBUTION
As at 31st March 2007                                                                                                                                            (Amount in Rs. ‘000)
Particulars                                     Capital        Capital            Cash        Cash      Cash Plus          Debt        Debt    Debt Plus        Eq.             Eq.
                                             Guarantee      Guarantee             Fund         Plus      Pension           Fund         Plus    Pension      Growth     Midcap Plus
                                             Fund 2014      Fund 2017                         Fund          Fund                       Fund       Fund         Fund           Fund
Opening Balance                                        -              -        667,630    1,781,860       61,753        349,416     356,675      38,768            -     1,402,757
Add : Addition during the year                    6,156         43,018       1,507,729    5,721,227      401,174      1,176,930    1,810,128    185,532    9,950,843     1,339,714
Less : Deduction during the year                    327          2,229       1,303,771    5,956,416      346,244      1,111,689    1,555,041    172,241     542,635      1,372,341
Closing Balance                                   5,829         40,789         871,588    1,546,671      116,683        414,657     611,762      52,059    9,408,208     1,370,130




Schedules to Fund Revenue Account

                                                                             SCHEDULE F1 : POLICYHOLDERS’ CONTRIBUTION
        st
As at 31 March 2007                                                                                                                                              (Amount in Rs. ‘000)
Particulars                                   Eq.Midcap      Eq.Midcap         Eq. Gain        Eq.    Eq. Growth            Eq.    Eq. Index         Eq.     Eq. Plus    Eq. Index
                                                   Fund        Pension            Fund        Fund        Pension         Index      Pension        Plus     Pension       Pension
                                                                  Fund                                      Fund           Fund         Fund       Fund        Fund         Fund-2
Opening Balance                                 548,339         82,492       2,805,988    1,350,691             -       740,654      56,795    7,021,151     533,115              -
Add : Addition during the year                  704,296         95,902       4,260,597    2,381,223      693,538      1,858,923     147,285    9,878,854     964,483       187,910
Less : Deduction during the year                451,994         84,930       2,046,229    1,945,715       51,247      1,708,831     132,602    7,605,496     756,446        17,786
Closing Balance                                 800,641         93,464       5,020,356    1,786,199      642,291        890,746      71,478    9,294,509     741,152       170,124

* ‘Eq. for Equity’
                                                                                                                                                                                        61
                                                                                                                                                                                        62

Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                               SCHEDULE F1 : POLICYHOLDERS’ CONTRIBUTION
As at 31st March 2007                                                                                                                                            (Amount in Rs. ‘000)
Particulars                                    Income       Life Long            Liquid    Liquid        Nifty       Premier    Premier      Premier         Premier       Premier
                                                 Bond       Gain Fund             Fund    Pension       Index    Eq. Growth    Balanced     Balancer       Debt Fund      Eq. Fund
                                                 Fund                                       Fund         Fund           Fund       Fund         Fund
Opening Balance                                       -        52,796                 -         -            -             -    42,383              -       115,988       339,944
Add : Addition during the year                 528,088         89,764          129,324     22,604   2,879,507     1,321,195     89,772        22,205        860,857       382,618
Less : Deduction during the year               126,242         35,222           23,372     11,487    185,320         97,963      46,190        3,573         819,299      292,253
Closing Balance                                401,846        107,338          105,952     11,117   2,694,187     1,223,232     85,965        18,632        157,546       430,309




Schedules to Fund Revenue Account

                                                              SCHEDULE F1 : POLICYHOLDERS’ CONTRIBUTION
As at 31st March 2007                                                                                                               (Amount in Rs. ‘000)
Particulars                                    Premier        Premier           Premier     Pure         Pure        Secure      Stable         Total
                                              Eq. Gain        Income        Nifty Index      Eq.        Stock          Fund       Fund
                                                  Fund           Fund              Fund     Fund         Fund
Opening Balance                                581,557               -                -   175,743            -        5,536     98,609    20,916,947
Add : Addition during the year               1,015,055        150,951          402,290    311,790    166,479          1,589    351,194    55,266,420
Less : Deduction during the year               723,061         53,049           35,380    115,721     38,744          1,280     27,694    31,121,059
Closing Balance                                873,551         97,902          366,910    371,812    127,735          5,845    422,109    45,062,308
* ‘Eq. for Equity’
Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                                          SCHEDULE F2 : INVESTMENTS
As at 31st March 2007                                                                                                                                      (Amount in Rs. ‘000)
Particulars                                        Acc    Acc Mid Cap       Accelerated     Bond       Capital      Capital      Capital     Cash        Cash      Cash Plus
                                               Mid Cap        Pension              Fund   Pension    Gurantee     Gurantee     Gurantee      Fund         Plus      Pension
                                                 Fund            Fund                       Fund    Fund 2012    Fund 2014    Fund 2017                  Fund          Fund

APPROVED INVESTMENTS
Government Bonds                                     -           2,363               -         -       22,684          483        9,510          -           -            -
Corporate Bonds                                 16,834           2,948          12,490     4,490       26,713        2,563            -     71,136      58,208            -
Infrastructure Bonds                                 -             568           2,405         -            -            -        9,533     16,032      44,533          533
Equity                                         395,046          43,129          13,764         -        9,739          885        9,414          -           -            -
Money Market                                    63,671           2,976          30,584    17,826            -            -            -    812,061   1,552,883      119,496
Mutual Fund                                          -               -               -         -            -            -            -          -           -            -

              Total                            475,551          51,984          59,243    22,316       59,136        3,931       28,457    899,229   1,655,624      120,029

OTHER INVESTMENTS
Corporate Bonds                                      -               -               -         -            -            -            -          -           -             -
Infrastructure Bonds                                 -               -               -         -            -            -            -          -           -             -
Equity                                         123,682          12,953           2,831         -        1,984          179        1,918          -           -             -
Money Market                                         -               -           2,652     3,878          250            -        3,378          -           -         2,752
Mutual Fund                                          -               -               -         -            -            -            -          -           -             -

              Total                            123,682          12,953           5,483     3,878        2,234          179        5,296          -           -         2,752

              Grand Total                      599,233          64,937          64,726    26,194       61,370        4,110       33,753    899,229   1,655,624      122,781

% of Approved to Total                          79.36%         80.05%           91.53%    85.20%       96.36%       95.64%       84.31%    100.00%    100.00%        97.76%
% of Other than Approved to Total               20.64%         19.95%            8.47%    14.80%        3.64%        4.36%       15.69%      0.00%      0.00%         2.24%
                                                                                                                                                                                  63
                                                                                                                                                                                         64

Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                                              SCHEDULE F2 : INVESTMENTS
As at 31st March 2007                                                                                                                                             (Amount in Rs. ‘000)
Particulars                                       Debt       Debt Plus         Debt Plus   Eq. Growth   Eq. Midcap   Eq.Midcap     Eq.Midcap     Eq. Gain        Eq.     Eq. Growth
                                                  Fund          Fund        Pension Fund         Fund    Plus Fund        Fund   Pension Fund       Fund        Fund    Pension Fund

APPROVED INVESTMENTS
Government Bonds                                 4,173          3,143                 -        98,039         108          307           167            -       1,888             -
Corporate Bonds                                419,828        365,735            48,726       104,776      95,389          150             1      221,452      25,460        18,663
Infrastructure Bonds                           305,039        217,298            29,073        30,526       8,282        6,462           872       57,818      12,905         2,416
Equity                                               -              -                 -     5,030,362   1,182,679      659,908        78,408    3,888,359   3,046,948       340,747
Money Market                                   349,257        352,254            16,654     1,102,160     137,173      126,992        14,196      687,817      56,286        68,441
Mutual Fund                                          -              -                 -             -           -            -             -            -           -             -

              Total                          1,078,297        938,430            94,453     6,365,863   1,423,631      793,819        93,644    4,855,446   3,143,487       430,267

OTHER INVESTMENTS
Corporate Bonds                                  20,236         24,771            4,876             -           -            -             -            -          -              -
Infrastructure Bonds                                  -              -                -             -           -            -             -            -          -              -
Equity                                                -              -                -     1,425,608     354,905      197,944        23,536    1,119,330    626,077         97,248
Money Market                                      6,380          1,876            5,629         1,200           -        1,251           938        1,000        125              -
Mutual Fund                                           -              -                -             -           -            -             -            -          -              -

              Total                              26,616         26,647           10,505     1,426,808     354,905      199,195        24,474    1,120,330    626,202         97,248

              Grand Total                    1,104,913        965,077           104,958     7,792,671   1,778,536      993,014       118,118    5,975,776   3,769,689       527,515

% of Approved to Total                          97.59%          97.24%           89.99%       81.69%       80.05%      79.94%         79.28%      81.25%      83.39%         81.56%
% of Other than Approved to Total                2.41%           2.76%           10.01%       18.31%       19.95%      20.06%         20.72%      18.75%      16.61%         18.44%

* ‘Eq. for Equity’
Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                                          SCHEDULE F2 : INVESTMENTS
As at 31st March 2007                                                                                                                               (Amount in Rs. ‘000)
Particulars                                   Eq. Index      Eq. Index         Eq. Plus   Eq. Plus   Eq. Index   Income    Life Long   Liquid    Liquid          Nifty
                                                   Fund        Pension            Fund    Pension      Pension     Bond         Gain    Fund    Pension         Index
                                                                  Fund                      Fund        Fund-2     Fund         Fund              Fund           Fund

APPROVED INVESTMENTS
Government Bonds                                 3,643              -           19,368          -           -          -          -         -         -           98
Corporate Bonds                                  2,499              1          271,720     23,550         750    106,145     43,160       499         -       16,853
Infrastructure Bonds                               150              -          246,629     10,945           -     50,366     11,536       854         -            -
Equity                                       1,531,599        129,904        7,088,414    567,193     112,948          -          -         -         -    1,746,045
Money Market                                    37,958          4,273        1,233,194    106,523      11,178    216,898     48,060    91,917     9,822      135,135
Mutual Fund                                          -              -                -          -           -          -          -         -         -            -

              Total                          1,575,849        134,178        8,859,325    708,211     124,876    373,409    102,756    93,270     9,822    1,898,131

OTHER INVESTMENTS
Corporate Bonds                                      -               -               -          -           -          -          -        -          -            -
Infrastructure Bonds                                 -               -               -          -           -          -          -        -          -            -
Equity                                         314,672          26,679       2,044,710    163,909      23,113          -          -        -          -      357,231
Money Market                                         -             250           2,000        650           -      1,439        625      788          -            -
Mutual Fund                                          -               -               -          -           -          -          -        -          -            -

              Total                            314,672          26,929       2,046,710    164,559      23,113      1,439        625      788          -      357,231

              Grand Total                    1,890,521        161,107       10,906,035    872,770     147,989    374,848    103,381    94,058     9,822    2,255,362

% of Approved to Total                          83.36%          83.29%         81.23%     81.15%       84.38%    99.62%      99.40%    99.16%   100.00%       84.16%
% of Other than Approved to Total               16.64%          16.71%         18.77%     18.85%       15.62%     0.38%       0.60%     0.84%     0.00%       15.84%
* ‘Eq. for Equity’
                                                                                                                                                                           65
                                                                                                                                                                        66

Schedules to Fund Revenue Account   Appendix II Refer Schedule 16 Note 23

                                                                                   SCHEDULE F2 : INVESTMENTS
As at 31st March 2007                                                                                                                            (Amount in Rs. ‘000)
Particulars                             Premier      Premier       Premier    Premier   Premier       Premier     Pure       Pure   Secure    Stable          Total
                                    Eq. Growth          Debt           Eq.   Eq. Gain   Income    Nifty Index      Eq.      Stock     Fund     Fund
                                           Fund         Fund          Fund       Fund      Fund          Fund     Fund      Fund

APPROVED INVESTMENTS
Government Bonds                             -            -              -     6,700          -            -     49,997    15,564      492     1,477       240,204
Corporate Bonds                          9,143       70,397              -     1,001     34,567        1,899          1         -    1,743    82,340     2,161,830
Infrastructure Bonds                       485       34,297              -     3,035      6,840            -          -         -      683     5,410     1,115,525
Equity                                 727,283            -        450,827   627,404          -      291,071    254,863    82,232      433    27,461    28,337,065
Money Market                           177,552      109,369          5,472   141,109     56,210       13,548          -         -    2,547   281,726     8,193,218
Mutual Fund                                  -            -              -         -          -            -          -         -        -         -             -

              Total                    914,463      214,063        456,299   779,249     97,617      306,518    304,861    97,796    5,898   398,414    40,047,842

OTHER INVESTMENTS
Corporate Bonds                              -              -            -         -          -            -          -         -       -     24,041        73,924
Infrastructure Bonds                         -              -            -         -          -            -          -         -       -          -             -
Equity                                 208,774              -       92,714   181,739          -       59,709     55,152    17,795      87      5,623     7,540,102
Money Market                                 -              -          125         -      6,693            -          -         -     188        116        44,183
Mutual Fund                                  -              -            -         -          -            -          -         -       -          -             -

              Total                    208,774              -       92,839   181,739      6,693       59,709     55,152    17,795     275     29,780     7,658,209

              Grand Total            1,123,237      214,063        549,138   960,988    104,310      366,227    360,013   115,591    6,173   428,194    47,706,051

% of Approved to Total                  81.41%      100.00%         83.09%    81.09%    93.58%        83.70%    84.68%    84.61%    95.55%   93.05%         83.95%
% of Other than Approved to Total       18.59%        0.00%         16.91%    18.91%     6.42%        16.30%    15.32%    15.39%     4.45%    6.95%         16.05%
* ‘Eq. for Equity’
Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                      SCHEDULE F3 : CURRENT ASSETS
As at 31st March 2007                                                                                                                                                         (Amount in Rs. ‘000)
Particulars                                     Acc Mid Cap    Acc Mid Cap    Accelerated       Balance     Balance Plus     Balanced      Balancer       Balancer          Bond        Capital
                                                       Fund        Pension           Fund          Fund         Pension      Plus Fund         Fund        Pension        Pension    Guarantee
                                                                      Fund                                         Fund                                       Fund          Fund     Fund 2012
Accrued Interest                                      1,506            227         1,178                -                -             -          -              -           249            863
Cash and bank balance                               133,421          9,355         2,182            71                2             9             -              -        12,446         20,765
Dividend Receivable                                     428             54            12                -                -             -          -              -              -             7
Receivables for Sale of Investments                   2,626            303                 -            -                -             -          -              -              -             -
Unit Collection A/c                                        -              -                -            -                -             -             -              -           -             -
Other Current Assets (For Investments) :                   -              -                -            -                -             -             -              -           -             -
Application Money                                    10,321          1,185                 -            -                -             -          -              -              -             -

              Total                                 148,302         11,124         3,372            71                2             9             -              -        12,695         21,635




Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                      SCHEDULE F3 : CURRENT ASSETS
As at 31st March 2007                                                                                                                                                         (Amount in Rs. ‘000)
Particulars                                         Capital        Capital         Cash          Cash         Cash Plus         Debt         Debt        Debt Plus           Eq.            Eq.
                                                 Guarantee      Guarantee          Fund           Plus         Pension          Fund          Plus        Pension         Growth     Eq. Midcap
                                                 Fund 2014      Fund 2017                        Fund             Fund                       Fund           Fund            Fund      Plus Fund
Accrued Interest                                        115            342         4,997       13,031              160        28,898        23,662          2,392         11,971          6,299
Cash and bank balance                                 1,541          6,505        33,997        98,321           4,187        41,921       219,141          3,476       1,610,968        79,941
Dividend Receivable                                       1              8             -             -                -             -            -               -         6,483          1,575
Receivables for Sale of Investments                        -              -            -             -                -             -            -               -        52,251          6,615
Unit Collection A/c                                        -              -            -             -                -             -            -               -              -             -
Other Current Assets (For Investments) :                   -              -            -             -                -             -            -               -              -             -
Application Money                                          -              -            -             -                -             -            -               -              -        33,603

        Total                                         1,657          6,855        38,994       111,352           4,347        70,819       242,803          5,868       1,681,673      128,033
* ‘Eq. for Equity’
                                                                                                                                                                                                     67
                                                                                                                                                                                            68

Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                   SCHEDULE F3 : CURRENT ASSETS
As at 31st March 2007                                                                                                                                                (Amount in Rs. ‘000)
Particulars                                      Eq. Midcap     Eq. Midcap    Eq. Gain      Eq.    Eq. Growth     Eq. Index       Eq. Index           Eq.       Eq. Plus     Eq. Index
                                                       Fund        Pension       Fund      Fund        Pension         Fund         Pension          Plus       Pension        Pension
                                                                      Fund                               Fund                          Fund         Fund          Fund          Fund-2
Accrued Interest                                        243              4     15,831     1,303           985          219               6         28,081         1,829             64
Cash and bank balance                                37,225          8,582    234,707    112,143      118,216             -         11,113        526,112       49,588          40,057
Dividend Receivable                                     829            105      5,765     2,622           447        1,325             111         10,379           858             86
Receivables for Sale of Investments                   3,943            476     64,006          -        3,807             -               -       115,484         9,834              -
Unit Collection A/c                                        -              -          -         -             -            -               -             -              -             -
Other Current Assets (For Investments) :                   -              -          -         -             -            -               -             -              -             -
Application Money                                    18,758          2,228           -         -             -            -               -             -              -             -

        Total                                        60,998         11,395    320,309    116,068      123,455        1,544          11,230        680,056       62,109          40,207




Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                   SCHEDULE F3 : CURRENT ASSETS
        st
As at 31 March 2007                                                                                                                                                  (Amount in Rs. ‘000)
Particulars                                        Income        Life Long      Liquid    Liquid         Nifty       Premier        Premier        Premier      Premier        Premier
                                                 Bond Fund       Gain Fund       Fund    Pension        Index    Eq. Growth        Balanced       Balancer         Debt            Eq.
                                                                                           Fund          Fund           Fund           Fund           Fund         Fund           Fund
Accrued Interest                                      7,835          2,097        151         4         1,376         1,711                   -             -     4,568              5
Cash and bank balance                                44,031          5,127     13,582      1,621      543,750       122,024                   -             -          -         4,985
Dividend Receivable                                        -              -          -         -        1,397         1,031                   -             -          -           396
Receivables for Sale of Investments                        -              -          -         -             -       10,315                   -             -          -             -
Unit Collection A/c                                        -              -          -         -             -                -               -             -          -             -
Other Current Assets (For Investments) :                   -              -          -         -             -                -               -             -          -             -
Application Money                                          -              -          -         -             -                -               -             -          -             -

              Total                                  51,866          7,224     13,733      1,625      546,523       135,081                   -             -     4,568          5,386
* ‘Eq. for Equity’
Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                        SCHEDULE F3 : CURRENT ASSETS
As at 31st March 2007                                                                                                     (Amount in Rs. ‘000)
Particulars                                         Premier        Premier       Premier     Pure      Pure   Secure   Stable         Total
                                                   Eq. Gain        Income           Nifty     Eq.     Stock     Fund    Fund
                                                       Fund           Fund    Index Fund     Fund      Fund
Accrued Interest                                      2,678          1,776           139         -        -     101    5,905       172,801
Cash and bank balance                                   945          3,810        34,921    25,753   10,600      32         -    4,227,173
Dividend Receivable                                     903               -          240      487      149         -      23        35,721
Receivables for Sale of Investments                   9,595               -             -        -        -        -        -      279,255
Unit Collection A/c                                        -              -             -        -        -        -        -             -
Other Current Assets (For Investments) :                   -              -             -        -        -        -        -             -
Application Money                                          -              -             -    6,712    2,148        -        -       74,955

              Total                                  14,121          5,586        35,300    32,952   12,897     133    5,928     4,789,905
* ‘Eq. for Equity’
                                                                                                                                                 69
                                                                                                                                                                                       70

Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                        SCHEDULE F4 : CURRENT LIABILITIES
As at 31st March 2007                                                                                                                                           (Amount in Rs. ‘000)
Particulars                                     Acc Mid Cap    Acc Mid Cap    Accelerated    Balance    Balance Plus   Balanced     Balancer    Balancer      Bond        Capital
                                                       Fund        Pension           Fund       Fund        Pension         Plus        Fund     Pension    Pension    Guarantee
                                                                      Fund                                     Fund        Fund                     Fund      Fund     Fund 2012
Payable for purchase of Investments                  21,444            579            14            -              -           -           -            -         -            47
Other Current Liabilities:                               83              9             6            -              -           -           -            -         2             6
Unit Payable A/c                                           -              -             -           -              -           -           -            -         -              -
              Total                                  21,527            588            20            -              -           -           -            -         2            53




Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                        SCHEDULE F4 : CURRENT LIABILITIES
As at 31st March 2007                                                                                                                                           (Amount in Rs. ‘000)
Particulars                                         Capital        Capital                                Cash Plus                            Debt Plus       Eq.     Eq. Midcap
                                                 Guarantee      Guarantee           Cash    Cash Plus      Pension        Debt     Debt Plus    Pension     Growth            Plus
                                                 Fund 2014      Fund 2017           Fund        Fund          Fund        Fund        Fund        Fund        Fund           Fund
Payable for purchase of Investments                      16             15              -           -              -          -            -           -    144,731        15,785
Other Current Liabilities:                                 -             3           198         223             30        242           89          24      1,086            335
Unit Payable A/c                                           -              -             -           -              -          -            -           -          -              -
              Total                                      16             18           198         223             30        242           89          24     145,817        16,120




Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                        SCHEDULE F4 : CURRENT LIABILITIES
As at 31st March 2007                                                                                                                                           (Amount in Rs. ‘000)
Particulars                                             Eq.     Eq.Midcap        Eq. Gain        Eq.    Eq. Growth     Eq. Index   Eq. Index     Eq. Plus   Eq. Plus    Eq. Index
                                                     Midcap       Pension            Fund       Fund        Pension         Fund     Pension        Fund    Pension       Pension
                                                       Fund          Fund                                     Fund                      Fund                   Fund        Fund-2
Payable for purchase of Investments                   8,644          1,065        30,865      93,023          9,497      42,524        4,422      54,979      3,642        11,831
Other Current Liabilities:                              294             36         1,568         852             74      33,483           41       1,782        144            14
Unit Payable A/c                                           -              -             -           -              -           -           -            -          -             -
              Total                                   8,938          1,101        32,433      93,875          9,571      76,007        4,463      56,761      3,786        11,845
Note : ‘Eq for Equity’
Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                                          SCHEDULE F4 : CURRENT LIABILITIES
As at 31st March 2007                                                                                                                                              (Amount in Rs. ‘000)
Particulars                                         Income        Life Long          Liquid    Liquid     Nifty       Premier       Premier       Premier      Premier       Premier
                                                      Bond             Gain           Fund    Pension    Index    Eq. Growth       Balanced      Balancer         Debt           Eq.
                                                      Fund             Fund                     Fund      Fund           Fund          Fund          Fund         Fund          Fund
Payable for purchase of Investments                        -              -               -         -   99,695         8,989                 -             -         -         5,123
Other Current Liabilities:                               30             36               7         1      216            251                 -             -    3,837            122
Unit Payable A/c                                           -              -               -         -         -                -             -             -         -             -
              Total                                      30             36               7         1    99,911         9,240                 -             -    3,837          5,245




Schedules to Fund Revenue Account     Appendix II Refer Schedule 16 Note 23

                                                                              SCHEDULE F4 : CURRENT LIABILITIES
As at 31st March 2007                                                                                                                 (Amount in Rs. ‘000)
Particulars                                         Premier        Premier          Premier     Pure     Pure        Secure         Stable         Total
                                                   Eq. Gain        Income       Nifty Index      Eq.    Stock          Fund          Fund
                                                       Fund           Fund             Fund     Fund     Fund
Payable for purchase of Investments                   7,301               -         15,175     1,573      512             2            28        581,521
Other Current Liabilities:                              200             24              78        66       17             1           524         46,035
Unit Payable A/c                                           -              -               -        -         -             -             -             -
              Total                                   7,501             24          15,253     1,639      529             3           552        627,556
                                                                                                                                                                                          71
                                                                                                                                                                                                           72

Schedules to Fund Revenue Account    Appendix II Refer Schedule 16 Note 23

                                                                                             SCHEDULE F5 : OTHER EXPENSES
For the year ended 31st March 2007                                                                                                                                                  (Amount in Rs. ‘000)
Particulars                                    Acc Mid Cap    Acc Mid Cap    Accelerated        Balance            Balance      Balanced       Balancer       Balancer            Bond        Capital
                                                      Fund        Pension           Fund          Fund        Plus Pension      Plus Fund          Fund        Pension          Pension    Guarantee
                                                                     Fund                                            Fund                                         Fund            Fund     Fund 2012
Policy Administration Charge                              -              -               -                -                 -            -               -               -            -              -
Surrender Charge                                          -              -               -                -                 -            -               -               -            -              -
Switching Charge                                          -              -               -                -                 -            -               -               -            -              -
Mortality Charge                                          -              -               -                -                 -            -               -               -            -              -
Rider Premium Charge                                      -              -               -                -                 -            -               -               -            -              -
Partial Withdrawal Charge                                 -              -               -                -                 -            -               -               -            -              -
Miscellaneous Charge                                      -              -               -                -                 -            -               -               -            -              -

              Total                                       -              -               -                -                 -            -               -               -            -              -




Schedules to Fund Revenue Account    Appendix II Refer Schedule 16 Note 23

                                                                                             SCHEDULE F5 : OTHER EXPENSES
                       st
For the year ended 31 March 2007                                                                                                                                                    (Amount in Rs. ‘000)
Particulars                                        Capital        Capital                                      Cash Plus                                     Debt Plus                     Eq. Midcap
                                                Guarantee      Guarantee          Cash        Cash Plus         Pension          Debt        Debt Plus        Pension        Eq. Growth           Plus
                                                Fund 2014      Fund 2017          fund            Fund             Fund          Fund           Fund            Fund               Fund          Fund
Policy Administration Charge                              -              -            -               -                 -            -               -               -                -              -
Surrender Charge                                          -              -            -               -                 -            -               -               -                -              -
Switching Charge                                          -              -            -               -                 -            -               -               -                -              -
Mortality Charge                                          -              -            -               -                 -            -               -               -                -              -
Rider Premium Charge                                      -              -            -               -                 -            -               -               -                -              -
Partial Withdrawal Charge                                 -              -            -               -                 -            -               -               -                -              -
Miscellaneous Charge                                      -              -         115             274                60            34            127              54                 -           316
              Total                                       -              -         115             274                60            34            127              54                 -           316
* ‘Eq. for Equity’
Schedules to Fund Revenue Account    Appendix II Refer Schedule 16 Note 23

                                                                                        SCHEDULE F5 : OTHER EXPENSES
For the year ended 31st March 2007                                                                                                                          (Amount in Rs. ‘000)
Particulars                                     Eq.Midcap      Eq.Midcap     Eq. Gain       Eq.    Eq. Growth      Eq. Index   Eq. Index    Eq. Plus   Eq. Plus     Eq. Index
                                                     Fund        Pension        Fund       Fund        Pension          Fund     Pension       Fund    Pension        Pension
                                                                    Fund                                 Fund                       Fund                 Fund          Fund-2
Policy Administration Charge                              -              -          -          -             -             -           -           -          -             -
Surrender Charge                                          -              -          -          -             -             -           -           -          -             -
Switching Charge                                          -              -          -          -             -             -           -           -          -             -
Mortality Charge                                          -              -          -          -             -             -           -           -          -             -
Rider Premium Charge                                      -              -          -          -             -             -           -           -          -             -
Partial Withdrawal Charge                                 -              -          -          -             -             -           -           -          -             -
Miscellaneous Charge                                    30             63        838        471              -           332         57       2,019        134              -
              Total                                     30             63        838        471              -           332         57       2,019        134              -




Schedules to Fund Revenue Account    Appendix II Refer Schedule 16 Note 23

                                                                                        SCHEDULE F5 : OTHER EXPENSES
                         st                                                                                                                                 (Amount in Rs. ‘000)
For the year ended 31 March 2007
Particulars                                        Income       Life Long      Liquid     Liquid        Nifty        Premier    Premier     Premier    Premier        Premier
                                                     Bond       Gain Fund       Fund     Pension       Index     Eq. Growth    Balanced    Balancer       Debt            Eq.
                                                     Fund                                  Fund         Fund            Fund       Fund        Fund       Fund           Fund
Policy Administration Charge                              -              -          -          -            -              -          -           -           -             -
Surrender Charge                                          -              -          -          -            -              -          -           -           -             -
Switching Charge                                          -              -          -          -            -              -          -           -           -             -
Mortality Charge                                          -              -          -          -            -              -          -           -           -             -
Rider Premium Charge                                      -              -          -          -            -              -          -           -           -             -
Partial Withdrawal Charge                                 -              -          -          -            -              -          -           -           -             -
Miscellaneous Charge                                      -            50           -          -            -              -          -           -         65             67
              Total                                       -            50           -          -            -              -          -           -         65             67
Note : ‘Eq for Equity’
                                                                                                                                                                                   73
                                                                                                                                            74

Schedules to Fund Revenue Account    Appendix II Refer Schedule 16 Note 23

                                                                             SCHEDULE F5 : OTHER EXPENSES
For the year ended 31st March 2007                                                                                   (Amount in Rs. ‘000)
Particulars                                        Premier        Premier        Premier   Pure    Pure   Secure   Stable        Total
                                                  Eq. Gain        Income     Nifty Index    Eq.   Stock     Fund    Fund
                                                      Fund           fund           Fund   Fund    Fund
Policy Administration Charge                              -              -             -      -       -        -        -            -
Surrender Charge                                          -              -             -      -       -        -        -            -
Switching Charge                                          -              -             -      -       -        -        -            -
Mortality Charge                                          -              -             -      -       -        -        -            -
Rider Premium Charge                                      -              -             -      -       -        -        -            -
Partial Withdrawal Charge                                 -              -             -      -       -        -        -            -
Miscellaneous Charge                                    67               -             -    67        -        -      67         5,307
              Total                                     67               -             -    67        -        -      67         5,307
* ‘Eq. for Equity’
Schedule Forming part of Financial Statement for the year ended 31st March 2007      Appendix II Refer Schedule 16 Note 23
                                                                Revenue Account for Unit Linked Business for the year ended 31st March 2006                                       (Amount in Rs. ‘000)
                                                     Balanced         Cash              Eq.         Debt    Life Long Gain      Eq. Index       Eq. Plus   Balanced plus     Debt Plus     Cash Plus
INCOME
Interest Income                                             -        15,691             246        48,393           1,281            334          1,136                -        29,751       35,344
Dividend Income                                             -             -          25,667             -               -          5,914         20,337                -             -             -
Write-up on T-Bills                                         -       11,448               95         1,480             260            106          6,465                -         3,091       17,445
Realised Gain / (Loss) on Investments                       -           844          78,670       (8,841)              84         61,268        146,476                -       (1,337)          (96)
Unrealised Gains / (Loss) on Investments                    -       (1,462)         729,124      (14,437)           (723)        193,712      1,395,038                -      (13,959)       (2,346)
Transfer From Shareholders                                  -            83               -             -               -              -              -                -             -             -
Write up on Corporate Bonds                                 -         6,199             418         2,658             240            276          8,572                -         1,724       34,352
            Total Income (A)                                -       32,803          834,220        29,253           1,142        261,610      1,578,024                -        19,270       84,699
EXPENSES
Fund Administration Expenses                                -        6,914           17,892        8,241              314              -              -                -            -              -
Fund Management Expenses                                    -        5,530           14,314        6,593              251          4,080         33,008                -        3,140         10,401
Bank Custody Charges                                        -           69              835           84                -            316          1,867                -           56            125
Fund Accounting Charges                                     -          271              678          271              198            285          1,029                -          271            729
            Total Expenses (B)                              -       12,784           33,719       15,189              763          4,681         35,904                -        3,467         11,255
Net Profit/(Loss) for the Year (A-B)                        -       20,019          800,501       14,064              379        256,929      1,542,120                -       15,803         73,444

                                                                              Balance Sheet for Unit Linked Business as at 31st March 2006                                        (Amount in Rs. ‘000)
                                                     Balanced         Cash              Eq.         Debt    Life Long Gain      Eq. Index       Eq. Plus   Balanced plus     Debt Plus     Cash Plus
LIABILITIES
Policy Holders Contribution (Unit Reserve at Cost)         -       667,630        1,698,810       871,593          52,796      1,033,600      7,021,151               -       796,094     1,781,860
Balanced Fund Contribution (Unit Reserve at Cost)    870,296             -        (348,119)     (522,177)               -      (292,946)              -         732,365     (439,419)             -
Appreciation in Balanced Funds Assets                213,223             -          (85,289)    (127,934)               -       (33,620)              -          84,051      (50,431)             -
Balanced Fund Contribution Not Yet Invested               71             -                 -            -               -              -              -               9             -             -
Profit/(Loss) for Current Year (2005-06)                   -        20,019           800,501       14,064             379        256,929      1,542,120               -        15,803        73,444
Previous Year’s Profit                                     -         3,140          114,172         1,075              18          5,025         37,874               -         2,111         3,380
            Total                                  1,083,590       690,789        2,180,075       236,621          53,193        968,988      8,601,145         816,425       324,158     1,858,684
ASSETS
Investments
Government Securities (Market Value)                       -       199,007              328       152,563           7,305              -        165,122               -       151,377       318,393
Corporate Bonds (Market Value)                             -       357,222           42,622       660,731          26,547         37,325        532,603               -       556,667     1,134,796
Equity Shares (Market Value)                               -             -        2,520,457             -               -      1,160,363      6,822,614               -             -             -
Balanced Fund Investments (Market Value)           1,083,519             -        (433,408)     (650,111)               -      (326,566)              -         816,416     (489,850)             -
            Total Investments (A)                  1,083,519       556,229        2,129,999       163,183          33,852        871,122      7,520,339         816,416       218,194     1,453,189
Current Assets
Cash and bank balances                                    71        42,306           90,571       27,510            8,718        132,970      1,237,256               9        65,241       184,828
Bank Fixed Deposits                                        -        82,085                -       12,000           10,000              -              -               -        14,000       197,580
Dividend Receivable                                        -             -              608            -                -            306          1,630               -             -             -
Interest Accrued on Investments                            -        11,567                6       35,633              779              7             22               -        27,253        24,520
            Total Current Assets (B)                      71       135,958           91,185       75,143           19,497        133,283      1,238,908               9       106,494       406,928
Current Liabilities
UL Outstanding Contract Payable                            -             -           36,051            -                -         34,216        148,830                -            -             -
Fund Charges Payable                                       -         1,274            4,393        1,573               90            986          7,933                -          418         1,038
Bank Charges Payable                                       -           124              665          132               66            215          1,339                -          112           395
UL Brokerage Payable                                       -             -                -            -                -              -              -                -            -             -
            Total Current Liabilities (C)                  -         1,398           41,109        1,705              156         35,417        158,102                -          530         1,433
Net Current Assets (D) = (B-C)                            71       134,560           50,076       73,438           19,341         97,866      1,080,806                9      105,964       405,495
            Total Assets (A+D)                        1,083,590      690,789       2,180,075        236,621         53,193        968,988       8,601,145        816,425       324,158    1,858,684
Balanced fund is a fund of funds. The investment objective of this fund is to provide a balanced investment between long-term capital appreciation and current income through investment in the Units
of our Equity and Debt funds.      * ‘Eq. for Equity’
                                                                                                                                                                                                         75
                                                                                                                                                                                                                                      76
Schedule Forming part of Financial Statement for the year ended 31st March 2007                 Appendix II Refer Schedule 16 Note 23
                                                                          Revenue Account for Unit Linked Business for the year ended 31st March 2006                                                      (Amount in Rs. ‘000)
                                                               Eq. Plus        Eq. Index          Balance        Debt Plus        Cash Plus         Eq. Gain     Accelerated           Secure            Stable      Eq. Midcap
                                                               Pension           Pension     Plus Pension         Pension          Pension                                                                                 Fund
INCOME
Interest Income                                                     87                14                  -          3,298            1,293             870                912            157            5,519              214
Dividend Income                                                  1,948               970                  -              -                -          15,121                  33              -              85            4,068
Write-up on T-Bills                                                275                 4                  -            311              618           3,246                167              26             340              396
Realised Gain / (Loss) on Investments                           23,096             6,374                  -          (414)              144         157,332                (42)           (71)             766           18,979
Unrealised Gains / (Loss) on Investments                        90,498            24,423                  -          (952)                4         792,251                426            (30)         (2,018)          199,119
Transfer From Shareholders                                           -                 -                  -              -                -               -                   -              -               -                -
Write up on Corporate Bonds                                        655                19                  -            202              577           5,009                  77             10             197            1,629
            Total Income (A)                                   116,559            31,804                  -          2,445            2,636         973,829              1,573              92           4,889          224,405
EXPENSES
Fund Administration Expenses                                         -                 -                  -              -                -           17,637                 -               -               -            4,182
Fund Management Expenses                                         2,594               558                  -            378              297           21,164               219              34           1,018            5,019
Bank Custody Charges                                               161                78                  -             27               20            1,064                 -               -               -              410
Fund Accounting Charges                                            252               198                  -            198              198              662                 -               -             221              250
            Total Expenses (B)                                   3,007               834                  -            603              515           40,527               219              34           1,239            9,861
Net Profit/(Loss) for the Year (A-B)                           113,552            30,970                  -          1,842            2,121          933,302             1,354              58           3,650          214,544
                                                                                                                                                                  st
                                                                                       Balance Sheet for Unit Linked Business as at 31 March 2006                                                          (Amount in Rs. ‘000)
                                                               Eq. Plus        Eq. Index          Balance        Debt Plus        Cash Plus         Eq. Gain     Accelerated           Secure            Stable      Eq. Midcap
                                                               Pension           Pension     Plus Pension         Pension          Pension                                                                                 Fund
LIABILITIES
Policy Holders Contribution (Unit Reserve at Cost)             533,115            83,909                -           79,438          61,753        2,805,988            35,862           5,536          98,609           548,339
Balanced Fund Contribution (Unit Reserve at Cost)                    -          (27,114)           67,784         (40,670)               -                -                 -               -               -                 -
Appreciation in Balanced Funds Assets                                -           (4,593)           11,483          (6,890)               -                -                 -               -               -                 -
Balanced Fund Contribution Not Yet Invested                          -                 -                2                -               -                -                 -               -               -                 -
Profit/(Loss) for Current Year (2005-06)                       113,552            30,970                -            1,842           2,121          933,302             1,354              58           3,650           214,544
Previous Year’s Profit                                           1,553             (392)                -              244             186           24,944                96              25             499                12
            Total                                              648,220            82,780           79,269           33,964          64,060        3,764,234            37,312           5,619         102,758           762,895
ASSETS
Investments
Government Securities (Market Value)                            22,796                 -                -           11,506           4,743           94,742             1,217           2,542           10,483            8,251
Corporate Bonds (Market Value)                                  56,344             1,439                -           54,188          33,067          129,703            19,108           1,058           69,264          104,550
Equity Shares (Market Value)                                   464,386            96,601                -                -               -        3,230,182             3,510               -            2,469          641,477
Balanced Fund Investments (Market Value)                             -          (31,707)           79,267         (47,560)               -                -                 -               -                -                -
            Total Investments (A)                              543,526            66,333           79,267           18,134          37,810        3,454,627            23,835           3,600           82,216          754,278
Current Assets
Cash and bank balances                                         132,678            17,808                 2          9,866            5,363           327,827           12,684           1,986           18,187           32,326
Bank Fixed Deposits                                                  -                 -                 -          4,000           20,335                 -                -               -                -                -
Dividend Receivable                                                 99                23                 -              -                -               830                1               -                1               58
Interest Accrued on Investments                                      5                 -                 -          2,073              657               834              820              38            2,532              174
            Total Current Assets (B)                           132,782            17,831                 2         15,939           26,355           329,491           13,505           2,024           20,720           32,558
Current Liabilities
UL Outstanding Contract Payable                                 27,448             1,213                -               -                -           11,924                 -               -               -            22,096
Fund Charges Payable                                               496                73                -              39               35            7,242                28               5             102             1,569
Bank Charges Payable                                               144                98                -              70               70              718                 -               -              76               276
UL Brokerage Payable                                                 -                 -                -               -                -                -                 -               -               -                 -
            Total Current Liabilities (C)                       28,088             1,384                -             109              105           19,884                28               5             178            23,941
Net Current Assets (D) = (B-C)                                 104,694            16,447                2          15,830           26,250          309,607            13,477           2,019          20,542             8,617
            Total Assets (A+D)                                 648,220            82,780           79,269          33,964           64,060        3,764,234            37,312           5,619         102,758           762,895
Balanced fund is a fund of funds. The investment objective of this fund is to provide a balanced investment between long-term capital appreciation and current income through investment in the Units of our Equity and Debt funds.
Note : ‘Eq for Equity’
Schedule Forming part of Financial Statement for the year ended 31st March 2007                Appendix II Refer Schedule 16 Note 23
                                    Revenue Account for Unit Linked Business for the year ended 31st March 2006                                                         (Amount in Rs. ‘000)
                                                           Eq. Midcap        Eq. Midcap         Pure Eq.      Premier Eq.          Premier         Premier         Premier             Total
                                                                  Plus          Pension                                           Eq. Gain            Debt         Balance
INCOME
Interest Income                                                  1,475               14                2               63             133               353                -       146,580
Dividend Income                                                  7,646              589               80              156             199                 -                -        82,813
Write-up on T-Bills                                                763               44              133                -              43                74                -        46,830
Realised Gain / (Loss) on Investments                           36,365            3,815               88              116           8,337                40                -       531,993
Unrealised Gains / (Loss) on Investments                       419,957           24,259           10,838           21,845          30,972             (165)                -     3,896,374
Transfer From Shareholders                                           -                -                -                -               -                 -                -            83
Write up on Corporate Bonds                                      3,050              192                -               93             280                23                -        66,452
            Total Income (A)                                   469,256           28,913           11,141           22,273          39,964               325                -     4,771,125
EXPENSES
Fund Administration Expenses                                         -                 -                -                -               -               -                 -         55,180
Fund Management Expenses                                        10,373               675              214              558             893             131                 -        121,442
Bank Custody Charges                                               738                55                -                -               -               -                 -          5,905
Fund Accounting Charges                                            357               188               51               58              62              41                 -          6,468
            Total Expenses (B)                                  11,468               918              265              616             955             172                 -        188,995
Net Profit/(Loss) for the Year (A-B)                           457,788           27,995           10,876            21,657          39,009             153                 -     4,582,130

                                                                Balance Sheet for Unit Linked Business as at 31st March 2006                                           (Amount in Rs. ‘000)
                                                           Eq. Midcap        Eq. Midcap         Pure Eq.      Premier Eq.          Premier         Premier         Premier             Total
                                                                  Plus          Pension                                           Eq. Gain            Debt         Balance
LIABILITIES
Policy Holders Contribution (Unit Reserve at Cost)          1,402,757            82,492          175,743          356,897         581,557         141,418                -      20,916,947
Balanced Fund Contribution (Unit Reserve at Cost)                   -                 -                -          (16,953)              -         (25,430)          42,383               -
Appreciation in Balanced Funds Assets                               -                 -                -             (587)              -            (881)           1,468               -
Balanced Fund Contribution Not Yet Invested                         -                 -                -                 -              -                -               -              82
Profit/(Loss) for Current Year (2005-06)                      457,788            27,995           10,876            21,657         39,009              153               -       4,582,130
Previous Year’s Profit                                             67                12                -                 -              -                -               -         194,041
            Total                                           1,860,612           110,499          186,619          361,014         620,566          115,260          43,851      25,693,200
ASSETS
Investments
Government Securities (Market Value)                           86,450             2,645           31,264               905         10,153           17,790               -       1,299,582
Corporate Bonds (Market Value)                                207,769            15,395                -            12,667         85,885           12,377               -       4,151,327
Equity Shares (Market Value)                                1,460,359            80,594          118,119           261,265        420,516                -               -      17,282,913
Balanced Fund Investments (Market Value)                            -                 -                -          (17,540)              -         (26,311)          43,851               -
            Total Investments (A)                           1,754,578            98,634          149,383          257,297         516,554            3,856          43,851      22,733,821
Current Assets
Cash and bank balances                                         156,724           15,084           45,053          116,066         142,833          100,284                 -     2,924,251
Bank Fixed Deposits                                                  -                -                -                -               -           10,000                 -       350,000
Dividend Receivable                                                248               13               76               57              71                -                 -         4,021
Interest Accrued on Investments                                  3,467                -                -               41               8            1,230                 -       111,666
            Total Current Assets (B)                           160,439           15,097           45,129          116,164         142,912          111,514                 -     3,389,938
Current Liabilities
UL Outstanding Contract Payable                                52,020             3,043            7,710           12,040          38,251                -               -         394,842
Fund Charges Payable                                            1,975               107              132              349             587               69               -          30,513
Bank Charges Payable                                              410                82               51               58              62               41               -           5,204
UL Brokerage Payable                                                -                 -                -                -               -                -               -               -
            Total Current Liabilities (C)                      54,405             3,232            7,893           12,447          38,900              110               -         430,559
Net Current Assets (D) = (B-C)                                106,034            11,865           37,236          103,717         104,012          111,404               -       2,959,379
            Total Assets (A+D)                              1,860,612           110,499          186,619          361,014         620,566          115,260          43,851      25,693,200
Balanced fund is a fund of funds. The investment objective of this fund is to provide a balanced investment between long-term capital appreciation and current income through investment in the
Units of our Equity and Debt funds.      Note : ‘Eq for Equity’
                                                                                                                                                                                                  77
78




     Schedules forming part of financial statements for year ended 31st March 2007
     Appendix III refer Schedule 16 Note 23

     Disclosure for Unit Linked Business as per Unit Linked Disclosure Norms:

     I.   Performance of Fund: Refer Enclosure “A”

     1.   Investment Management
          i)    Activities outsourced: Fund Accounting.
          ii)   Fess paid for various activities charged to Policyholders’ account: Refer Enclosure “B”.
          iii) Basis of Payment of Fees: Refer Enclosure “B”.

     2.   Related party transactions
          i)    During the year no brokerage, custodial fees and any other payments and receipts made to/from related parties
                (Previous year: NIL).
          ii)   Company wise details of investments held in the promoter group along with its percentage to funds under management:
                As on 31st March 07 no investments is held in the promoter group (Previous year NIL)

     3.   Industry wise Disclosure of Investment Refer Enclosure “C”.

     4.   Unclaimed redemption of Units: As on 31st March 07 there is no unclaimed redemption of units.

     5.   Highest, Lowest and Closing NAV at the end of the year: Refer Enclosure “D”.

     6.   Expenses Charged to Fund (percentage basis) :
          i)    Annualized expense ratio to average daily assets of the Fund: Refer Enclosure “E”

     7.   Ratio of Gross income to average daily net assets: Refer Enclosure “F”

     8.   There are no doubtful debts on assets as on 31st March 07.

     9.   Disclosure of appreciation and/or depreciation in value of investments: Refer Enclosure “G”
                                                                                                                  79




Appendix III refer Schedule 16 Note 23
                           Enclosure A : Performance of Fund (Absolute Growth %)
  Fund Names                               Date Of    Current Year                                        Since
                                         Inception      2006-07 (%)   2005-06 (%)   2004-05 (%)   Inception (%)
  Acc Mid Cap Fund                        24-Jul-06          22.39          0.00          0.00            22.39
  Acc Mid Cap Pension Fund                24-Jul-06          18.99          0.00          0.00           18.99
  Accelerated Fund                       18-Nov-04            6.78          8.95          4.62           21.71
  Balance Fund                           15-Jan-04            7.56         28.46          3.49           38.06
  Balance Plus Pension Fund              18-Nov-04            9.10         28.09          3.86           45.13
  Balanced Plus Fund                      23-Jul-04           8.36         27.13         11.97           54.25
  Balancer Fund                           24-Jul-06          11.99          0.00          0.00           11.99
  Balancer Pension Fund                   24-Jul-06          11.34          0.00          0.00           11.34
  Bond Pension Fund                       24-Jul-06            4.46         0.00          0.00             4.46
  Capital GuaranteeFund 2012              11-Jan-07          (0.66)         0.00          0.00           (0.66)
  Capital GuaranteeFund 2014              11-Jan-07         (10.39)         0.00          0.00          (10.39)
  Capital GuaranteeFund 2017              11-Jan-07          (2.20)         0.00          0.00           (2.20)
  Cash Fund                               15-Jan-04           5.39          3.68          2.53           12.14
  Cash Plus Fund                          23-Jul-04           6.99          5.26          3.26           16.29
  Cash Plus Pension Fund                 18-Nov-04            7.18          5.08          2.02           14.90
  Debt Fund                               15-Jan-04           3.60          2.50         (1.25)            5.83
  Debt Plus Fund                          23-Jul-04           5.06          3.85          0.28            9.41
  Debt Plus Pension Fund                 18-Nov-04            5.61          3.59          2.63           12.27
  Equity Fund                             15-Jan-04          11.67         65.82         11.26           82.61
  Equity Gain Fund                        23-Jul-04           4.95         70.84         36.34          144.46
  Equity Growth Fund                      24-Jul-06          18.45          0.00          0.00           18.45
  Equity Growth Pension Fund              24-Jul-06          18.66          0.00          0.00           18.66
  Equity Index Fund                       23-Jul-04          12.47         64.90         23.13          128.36
  Equity Index Pension Fund              18-Nov-04           13.08         66.74          6.86          101.49
  Equity Midcap Fund                      9-Mar-05            4.20         74.56          0.95           83.62
  Equity Midcap Pension Fund              9-Mar-05            6.80         78.83          1.79           94.41
  Equity Midcap Plus Fund                 9-Mar-05            5.11         76.80          1.63           88.87
  Equity Plus Fund                        23-Jul-04           6.11         70.32         39.33          151.79
  Equity Plus Pension Fund               18-Nov-04            7.08         73.82         18.64          120.82
  Equity Index Pension Fund-2             24-Jul-06          21.58          0.00          0.00           21.58
  Income Bond Fund                        10-Jul-06           4.15          0.00          0.00            4.15
  Life Long Gain Fund                     23-Jul-04           4.30          2.01         (6.95)          (1.00)
  Liquid Fund                             10-Jul-06           5.15          0.00          0.00             5.15
  Liquid Pension Fund                     24-Jul-06           4.84          0.00          0.00             4.84
  Nifty Index Fund                        24-Jul-06          23.87          0.00          0.00           23.87
  Premier Balanced Fund                  17-Dec-05            7.25          8.76          0.00           16.65
  Premier Balancer Fund                   24-Jul-06          10.60          0.00          0.00           10.60
  Premier Debt Fund                      17-Dec-05            4.11          1.45          0.00             5.62
  Premier Equity Fund                    17-Dec-05           11.34         20.20          0.00           33.83
  Premier Equity Gain Fund               17-Dec-05            5.20         26.63          0.00           33.21
  Premier Equity Growth Fund              24-Jul-06          20.51          0.00          0.00           20.51
  Premier Income Fund                     21-Jul-06           2.79          0.00          0.00             2.79
  Premier Nifty Index Fund                24-Jul-06          22.42          0.00          0.00           22.42
  Pure Equity Fund                       17-Dec-05           (0.38)        22.79          0.00           22.32
  Pure Stock Fund                         21-Jul-06          13.66          0.00          0.00           13.66
  Secure Fund                            15-Oct-04            6.31          3.05          2.29           12.06
  Stable Fund                            15-Sept-04           4.46          4.69          4.13           13.87
80




     Appendix III refer Schedule 16 Note 23
                                  Enclosure B : Fees Charged to Policyholders’ Account
                                                                                                (Amt. in Rs. ‘000)
       Particulars                                      Fund                Fund                        Fund
                                                 Management        Administration   Custody        Accounting
                                                    Expenses           Expenses     Charges           Charges
       Acc Mid Cap Fund                                 2,676                   -           -               -
       Acc Mid Cap Pension Fund                           462                   -           -               -
       Accelerated Fund                                   456                   -           -               -
       Balance Fund                                         -                   -           -               -
       Balance Plus Pension Fund                            -                   -           -               -
       Balanced plus Fund                                   -                   -           -               -
       Balancer Fund                                        -                   -           -               -
       Balancer Pension Fund                                -                   -           -               -
       Bond Pension Fund                                  107                   -           -               -
       Capital GuaranteeFund 2012                          84                   -           -               -
       Capital GuaranteeFund 2014                           6                   -           -               -
       Capital GuaranteeFund 2017                          50                   -           -               -
       Cash fund                                        8,200              10,250          48              67
       Cash Plus Fund                                  14,410                   -          29             245
       Cash Plus Pension Fund                             820                   -           3              57
       Debt Fund                                       10,136              12,670       (33)               67
       Debt Plus Fund                                   6,414                   -          56              71
       Debt Plus Pension Fund                             671                   -           3              51
       Eq Growth Fund                                  35,261                   -           -               -
       Eq Midcap Plus Fund                             26,354                   -          95             221
       Eq.Midcap Fund                                  12,872              10,726       (37)               67
       Eq.Midcap Pension Fund                           1,699                   -           1              62
       Equity Gain Fund                                71,368              59,476        370              468
       Equity Fund                                     30,346              37,932        157              315
       Equity Growth Pension Fund                       3,179                   -           -               -
       Equity Index Fund                               15,709                   -        176              157
       Equity Index Pension Fund                        1,316                   -         (7)              64
       Equity Plus Fund                               144,106                   -       995             1,024
       Equity Plus Pension Fund                        12,219                   -          67              67
       Equity Index Pension Fund-2                        508                   -           -               -
       Income Bond Fund                                 1,169                   -           -               -
       Life Long Gain Fund                                748                 935           -              50
       Liquid Fund                                        235                   -           -               -
       Liquid Pension Fund                                 44                   -           -               -
       Nifty Index Fund                                 6,315                   -           -               -
       Premier Equity Growth Fund                      12,391                   -           -               -
       Premier Balance fund                                 -                   -           -               -
       Premier Balancer Fund                                -                   -           -               -
       Premier Debt Fund                                5,239                   -           -              65
       Premier Equity Fund                             11,159                   -           -              67
       Premier Equity Gain Fund                        19,192                   -           -              67
       Premier Income fund                              1,232                   -           -               -
       Premier Nifty Index Fund                         3,676                   -           -               -
       Pure Equity Fund                                 4,414                   -           -              67
       Pure Stock Fund                                    855                   -           -               -
       Secure Fund                                         72                   -           -               -
       Stable Fund                                      1,479                   -           -              67
       Total                                          467,649            131,988      1,923             3,384

       Basis of Payment of Fees
       Fund Management Charges                % of NAV
       Fund Administration Charges            % of NAV / Fixed Amount
       Fund Accounting Charges                % of Asset Under Management
       Custody Charges                        % of Market Value of Investment
                                                                                                                           81




Appendix III refer Schedule 16 Note 23
                   Enclosure C: Summary Of Industry Wise Disclosure Of Investments
   Industry                                                                     Amt in Rs. ‘000           Exposure (%)
   Banking Services Industry - Fixed Deposit                                         1,681,000                    3.52
   Banking Services Industry - Other than Fixed Deposits                             8,567,601                   17.96
   Computer Software Industry                                                        5,407,527                   11.34
   Others                                                                           32,049,923                   67.18
   Total                                                                            47,706,051                  100.00
Note - Industry exposure does not include cash element




                                Fundwise Industrywise Disclosure of Investments
                                              Banking Services       Computer Software                   Others
                                                   Industry                Industry
  Portfolio Name
                                                Amt in                  Amt in                        Amt in
                                               Rs. ‘000          %     Rs. ‘000          %           Rs. ‘000          %
  Acc Mid Cap Fund                              84,733        0.83      78,607        1.45           435,893        1.36
  Acc Mid Cap Pension Fund                        5,890       0.06        8,631       0.16            50,417        0.16
  Accelerated Fund                              32,125        0.31        3,210       0.06            29,392        0.09
  Bond Pension Fund                             17,826        0.17            -       0.00              8,367       0.03
  Capital GuaranteeFund 2012                      1,110       0.01        2,271       0.04            57,989        0.18
  Capital GuaranteeFund 2014                        102       0.00          206       0.00              3,802       0.01
  Capital GuaranteeFund 2017                      1,073       0.01        2,195       0.04            30,485        0.10
  Cash Fund                                    809,139        7.90            -       0.00            90,091        0.28
  Cash Plus Fund                             1,465,592       14.31            -       0.00           190,032        0.59
  Cash Plus Pension Fund                       119,349        1.16            -       0.00              3,432       0.01
  Debt Fund                                    412,506        4.02            -       0.00           692,404        2.16
  Debt Plus Fund                               372,676        3.64            -       0.00           592,401        1.85
  Debt Plus Pension Fund                        21,306        0.21            -       0.00            83,654        0.26
  Eq Growth Fund                             1,339,451       13.07     858,238       15.87         5,594,983       17.44
  Eq Midcap Plus Fund                          228,670        2.23     236,631        4.38         1,313,236        4.10
  Eq.Midcap Fund                               165,906        1.62     132,047        2.44           695,062        2.17
  Eq.Midcap Pension Fund                        19,270        0.19      15,689        0.29            83,159        0.26
  Equity Gain Fund                             982,145        9.58     670,553       12.40         4,323,080       13.49
  Equity Fund                                  403,402        3.94     710,485       13.14         2,655,802        8.29
  Equity Growth Pension Fund                    91,378        0.89      58,198        1.08           377,939        1.18
  Equity Index Fund                            212,442        2.07     357,136        6.60         1,320,943        4.12
  Equity Index Pension Fund                     18,826        0.18      30,291        0.56           111,989        0.35
  Equity Plus Fund                           1,669,975       16.29   1,222,437       22.61         8,013,618       25.00
  Equity Plus Pension Fund                     147,325        1.44      97,890        1.81           627,554        1.96
  Equity Index Pension Fund-2                   24,046        0.23      26,336        0.49            97,607        0.30
  Income Bond Fund                             204,076        1.99            -       0.00           170,772        0.53
  Life Long Gain Fund                           52,235        0.51            -       0.00            51,146        0.16
  Liquid Fund                                   90,322        0.88            -       0.00              3,736       0.01
  Liquid Pension Fund                             9,763       0.10            -       0.00                 59       0.00
  Nifty Index Fund                             291,884        2.85     407,141        7.53         1,556,338        4.86
  Premier Equity Growth Fund                   214,089        2.09     125,253        2.32           783,895        2.45
  Premier Debt Fund                            109,369        1.07            -       0.00           104,694        0.33
  Premier Equity Fund                           55,362        0.54     105,125        1.94           388,652        1.21
  Premier Equity Gain Fund                     183,268        1.79     108,110        2.00           669,610        2.09
  Premier Income Fund                           56,761        0.55            -       0.00            47,549        0.15
  Premier Nifty Index Fund                      46,708        0.46      67,871        1.26           251,647        0.79
  Pure Equity Fund                                    -       0.00      57,814        1.07           302,199        0.94
  Pure Stock Fund                                     -       0.00      18,655        0.34            96,936        0.30
  Secure Fund                                     3,136       0.03          102       0.00              2,935       0.01
  Stable Fund                                  285,365        2.78        6,405       0.12           136,424        0.43
  Grand Total                               10,248,601      100.00   5,407,527      100.00        32,049,923      100.00
82




     Appendix III refer Schedule 16 Note 23
                                  Banking Services - Exposure details - Scrip Wise
        Instrument                                                         Amt in Rs. ‘000    (%)
        10% SARASWATBANK - 06-May-2008 FD                                          50,000    0.49
        10.95% ICICI BANK LTD - 03-Mar-2008 FD                                    251,000    2.45
        11% IDBI - 12-May-2008                                                     50,053    0.49
        11.11% STATE BANK OF HYDERABAD - 03-Mar-2008 FD                           100,000    0.98
        11.25% CANARA BANK - 03-Mar-2009 FD                                       100,000    0.98
        11.25% ICICI BANK LTD - 13-Mar-2009 FD                                    100,000    0.98
        11.25% SYNDICATE BANK - 17-Mar-2008 FD                                     50,000    0.49
        11.30% SYNDICATE BANK - 24-Mar-2009 FD                                     50,000    0.49
        11.30% CANARA BANK - 13-Mar-2009 FD                                       150,000    1.46
        11.30% CANARA BANK - 14-Mar-2008 FD                                       100,000    0.98
        11.30% SYNDICATE BANK - 24-Mar-2009 FD (29/03/07)                         200,000    1.95
        11.50% PUNJAB NATIONAL BANK - 21-Mar-2008 FD                              200,000    1.95
        6.00% IDBI OMNI BONDS M - 16/01/2009                                       46,514    0.45
        8.25% ICICI BANK LTD - 13-Aug-2007 FD                                     100,000    0.98
        8.90% ICICI BANK LTD - 12-Apr-2007 FD                                     100,000    0.98
        8.96% SYNDICATE BANK - 28-Dec-2007 FD                                      80,000    0.78
        8.96% SYNDICATE BANK - 29-Dec-2007 FD                                      50,000    0.49
        Allahabad Bank CD 12 March 2008                                           227,215    2.22
        Allahabad Bank CD 22 Feb 2008                                              45,756    0.45
        ALLAHABAD BANK CD- 31-Oct-2007                                            143,287    1.40
        ALLAHABAD CD 19 Sept 2007                                                  48,175    0.47
        Canara Bank CD 28 Feb 2008                                                501,481    4.89
        FEDERAL BANK LTD - 29-Jun-2007                                             98,041    0.96
        HDFC Bank CD 15 June 2007                                                  49,213    0.48
        HDFC Bank CD 28 June 2007                                                 147,138    1.44
        HDFC BANK LTD                                                             141,884    1.38
        HSBC CD 11 July 2007                                                      146,788    1.43
        ICICI Bank CD 03 Jan 2008                                                  93,474    0.91
        ICICI Bank CD 21 May 2007                                                  98,876    0.96
        ICICI Bank CD 29 June 2007                                                196,148    1.91
        ICICI Bank CD 31 Jul 2007                                                  97,428    0.95
        ICICI Bank CD 6 March 2008                                                136,016    1.33
        ICICI BANK LTD                                                            900,510    8.76
        ICICI BANK LTD - 04-Apr-2007                                               49,957    0.49
        ICICI BANK LTD CD - 22-Jun-2007                                            98,251    0.96
        ICICI Bank Ltd. CD 20 Feb 2008                                            228,521    2.23
        IDBI Bank CD 05 March 2008                                                136,427    1.33
        IDBI Bank CD 13 Nov 2007                                                   95,232    0.93
        INDIAN BANK CD - 09-Apr-2007                                               99,807    0.97
        Indian Bank CD 05 Jun 07                                                   98,580    0.96
        Indian Bank CD 20 Jul 2007                                                 48,852    0.48
        ING Vysya Bank CD 06 Apr 2007                                              49,936    0.49
        ING VYSYA BANK LTD                                                         75,663    0.74
        KOTAK MAHINDRA BANK CD - 10-Jul-2007                                       97,815    0.95
        KOTAK MAHINDRA BANK CD- 19-Jun-2007                                        98,288    0.96
        Kotak Mahindra Bank CD 31 Jul 2007                                         97,446    0.95
        ORIENTAL BANK OF COMMERCE                                                  22,112    0.22
        PNB CD 28 June 2007                                                        97,859    0.95
        PUNJAB NATIONAL BANK                                                      636,222    6.21
        STATE BANK MYSORE CD 19 March 2008                                        453,006    4.42
        STATE BANK OF BIKANER & JAIPUR - 11-Jun-2007                               98,404    0.96
        STATE BANK OF HYDERABAD- CD 07 Jun 2007                                    49,214    0.48
                                                                                                    83




Appendix III refer Schedule 16 Note 23
                               Banking Services - Exposure details - Scrip Wise
   Instrument                                                           Amt in Rs. ‘000       (%)
   STATE BANK OF INDIA                                                         917,072       8.95
   STATE BANK OF INDIA CD- 14-May-2007                                          49,541       0.48
   STATE BANK OF INDORE CD - 14-May-2007                                        49,557       0.48
   STATE BANK OF INDORE CD 30 Apr 2007                                          49,656       0.48
   STATE BANK OF PATIALA - 29-Nov-2007                                          47,445       0.46
   STATE Bank OF PATIALA -CD 06 Sep 07                                          48,365       0.47
   STATE BANK OF TRAVANCORE CD- 07-Jan-2008                                     93,395       0.91
   STATE BANK SAURASHTRA - 21-Jun-2007                                          98,281       0.96
   UCO Bank CD 07 Feb 2008                                                     230,781       2.25
   UCO Bank CD 21 Apr 2007                                                      49,779       0.49
   UCO Bank CD 29 June 2007                                                     49,047       0.48
   UCOBANK CD - 12-Jul-2007                                                    244,555       2.39
   Union Bank CD 20 March 2008                                                 452,868       4.42
   UTI Bank CD 23 Aug 2007                                                      48,211       0.47
   UTI Bank CD 28 Aug 2007                                                     145,289       1.42
   UTI BANK LTD CD 15-Jun-2007                                                  98,418       0.96
   Yes Bank CD 12 Oct 2007                                                      47,992       0.47
   YESBANK -CD - 30-Oct-2007                                                    47,760       0.47
   Grand Total                                                              10,248,601     100.00




                       Computer Software Industry- Exposure details - Scrip Wise
   Instrument                                                           Amt in Rs. ‘000       (%)
   AZTEC SOFTWARE                                                                 45,143     0.83
   HCL TECHNOLOGIES LTD                                                           89,219     1.65
   INFOSYS TECHNOLOGIES LTD                                                  1,500,563      27.76
   INFOTECH ENTERPRISES LTD                                                     26,573       0.49
   MASTEK LTD                                                                     92,923     1.72
   MPHASIS BFL LIMITED                                                         823,201      15.22
   NIIT TECHNOLOGIES LIMITED                                                    92,188       1.70
   SATYAM COMPUTER SERVICES LTD                                                866,937      16.03
   TATA CONSULTANCY SERVICES LTD                                             1,340,287      24.79
   TULIP IT SERVICES LIMITED                                                      61,599     1.14
   WIPRO LTD                                                                   468,894       8.67
   Grand Total                                                               5,407,527     100.00
84




     Appendix III refer Schedule 16 Note 23.
                        Enclosure D : Highest, Lowest and Closing NAV for the year 2006-07
        Fund Names                                           Closing NAV        Lowest       Highest
                                                               31-Mar-07           NAV           NAV
                                                                    (Rs.)         (Rs.)         (Rs.)
        Accelerated Fund                                          12.171        10.689        12.685
        Accelerator M-C Pension Fund                              11.898        10.000        13.237
        Accelerator Mid-Cap Fund                                  12.238        10.000        13.580
        Balance Plus Pension Fund                                 14.512        11.970        15.206
        Balanced Fund                                             13.806        11.408        14.536
        Balanced Plus Fund                                        15.425        12.825        16.166
        Balancer Fund                                             11.198         9.933        11.665
        Balancer Pension Fund                                     11.133        10.000        11.554
        Bond Fund                                                 10.414        10.000        10.414
        Bond Pension Fund                                         10.446        10.000        10.446
        Capital Guarantee Fund- 2012                               9.986         9.837        10.102
        Capital Guarantee Fund- 2014                               9.778         9.635        10.115
        Capital Guarantee Fund- 2017                               9.952         9.732        10.116
        Cash Fund                                                 11.215        10.654        11.215
        Cash Plus Fund                                            11.628        10.888        11.628
        Cash Plus Pension Fund                                    11.490        10.738        11.490
        Debt Fund                                                 10.583        10.247        10.616
        Debt Plus Fund                                            10.940        10.448        10.944
        Debt Plus Pension Fund                                    11.227        10.668        11.227
        Equity Fund                                               18.262        12.608        20.110
        Equity Gain Fund                                          24.447        17.242        27.138
        Equity Growth Fund                                        11.845         9.564        13.039
        Equity Growth Pension Fund                                11.865        10.000        13.403
        Equity Index Fund                                         22.835        15.649        25.099
        Equity Index Pension Fund                                 20.148        13.798        22.151
        Equity Index Pension Fund 2                               12.157        10.000        13.384
        Equity Midcap Fund                                        18.362        13.522        20.486
        Equity Midcap Pension Fund                                19.440        13.977        21.662
        Equity Midcap Plus Fund                                   18.886        13.518        21.064
        Equity Plus Fund                                          25.178        17.454        27.916
        Equity Plus Pension Fund                                  22.082        15.303        24.489
        Life Long Gain Fund                                        9.901         9.517         9.901
        Liquid Pension Fund                                       10.483        10.000        10.483
        Liquid Fund                                               10.514        10.000        10.514
        Nifty Index Fund                                          12.387         9.788        13.629
        Premier Bal Fund                                          11.664         9.882        12.179
        Premier Balancer Fund                                     11.060        10.000        11.529
        Premier Bond Fund                                         10.279        10.000        10.279
        Premier Debt Fund                                         10.562        10.158        10.562
        Premier Eq Gain Fund                                      13.320         9.332        14.787
        Premier Equity Fund                                       13.383         9.238        14.742
        Premier Equity Growth Fund                                12.050        10.000        13.359
        Premier Equity Index Fund                                 12.241        10.000        13.492
        Pure Eq Fund                                              12.231         9.445        13.589
        Pure Stock Fund                                           11.366        10.000        12.625
        Secure Gain Fund                                          11.206        10.562        11.206
        Stable Gain Fund                                          11.387        10.839        11.635
                                                                                                                     85




Appendix III refer Schedule 16 Note 23                   Appendix III refer Schedule 16 Note 23
  Enclosure E : Annualised Expense Ratio to                  Enclosure F : Ratio of Gross Income to
      Average Daily Assets of the Fund                         Average Daily Assets of the Fund
  Fund Name                          Expense Ratio (%)     Fund Names                             Income Ratio (%)
  Acc Mid Cap Fund                                1.75     Acc Mid Cap Fund                                   7.00
  Acc Mid Cap Pension Fund                        1.75     Acc Mid Cap Pension Fund                          15.32
  Accelerated Fund                                1.20     Accelerated Fund                                   8.45
  Bond Pension Fund                               0.95     Bond Pension Fund                                  7.70
  Capital GuaranteeFund 2012                      1.25     Capital GuaranteeFund 2012                         6.84
  Capital GuaranteeFund 2014                      1.25     Capital GuaranteeFund 2014                         5.80
  Capital GuaranteeFund 2017                      1.25     Capital GuaranteeFund 2017                         6.63
  Cash fund                                       2.26     Cash fund                                          7.54
  Cash Plus Fund                                  0.71     Cash Plus Fund                                     7.67
  Cash Plus Pension Fund                          0.75     Cash Plus Pension Fund                             7.68
  Debt Fund                                       2.25     Debt Fund                                          6.05
  Debt Plus Fund                                  0.71     Debt Plus Fund                                     6.20
  Debt Plus Pension Fund                          0.76     Debt Plus Pension Fund                             6.69
  Eq Growth Fund                                  1.75     Eq Growth Fund                                     0.85
  Eq Midcap Plus Fund                             1.52     Eq Midcap Plus Fund                               22.49
  Eq.Midcap Fund                                  2.75     Eq.Midcap Fund                                    22.57
  Eq.Midcap Pension Fund                          1.56     Eq.Midcap Pension Fund                            24.50
  Equity Gain Fund                                2.77     Equity Gain Fund                                  14.40
  Equity Fund                                     2.27     Equity Fund                                       13.78
  Equity Growth Pension Fund                      1.75     Equity Growth Pension Fund                         1.26
  Equity Index Fund                               1.02     Equity Index Fund                                 12.30
  Equity Index Pension Fund                       1.04     Equity Index Pension Fund                         13.77
  Equity Plus Fund                                1.52     Equity Plus Fund                                  13.43
  Equity Plus Pension Fund                        1.52     Equity Plus Pension Fund                          13.49
  Equity Index Pension Fund-2                     1.25     Equity Index Pension Fund-2                        9.34
  Income Bond Fund                                0.95     Income Bond Fund                                   7.88
  Life Long Gain Fund                             2.32     Life Long Gain Fund                                7.16
  Liquid Fund                                     0.95     Liquid Fund                                        8.36
  Liquid Pension Fund                             0.95     Liquid Pension Fund                                8.02
  Nifty Index Fund                                1.25     Nifty Index Fund                                   2.59
  Premier Equity Growth Fund                      2.75     Premier Equity Growth Fund                         8.49
  Premier Debt Fund                               2.28     Premier Debt Fund                                  7.29
  Premier Equity Fund                             2.26     Premier Equity Fund                               14.26
  Premier Equity Gain Fund                        2.26     Premier Equity Gain Fund                           8.71
  Premier Income fund                             2.75     Premier Income fund                                7.71
  Premier Nifty Index Fund                        2.75     Premier Nifty Index Fund                          11.24
  Pure Equity Fund                                1.52     Pure Equity Fund                                   7.45
  Pure Stock Fund                                 1.75     Pure Stock Fund                                    9.12
  Secure Fund                                     1.20     Secure Fund                                        7.81
  Stable Fund                                     1.25     Stable Fund                                        7.19
                                                                                                                                                                                                          86

Appendix III refer Schedule 16 Note 23

                                               Enclosure - G : Fundwise and Classwise Appreciation/(Depreciation) in value of investments
                                                                                                                                                                                     (Amt. in Rs. ‘000)
Particulars                                     Accelerated    Accelerator    Accelerator         Bond         Capital        Capital         Capital             Cash       Cash         Cash Plus
                                                  Gain Fund       Mid Cap         Mid Cap       Pension     Guarantee      Guarantee       Guarantee              Fund        Plus         Pension
                                                                     Fund    Pension Fund         Fund      Fund 2012      Fund 2014       Fund 2017                         Fund             Fund
Government Bonds                                           -             -              -              -         (120)               -           (15)                -           -                 -
Corporate Bonds                                       (212)             19              2           (91)          (47)            (77)              -             (29)         (1)                 -
Infrastructure Bonds                                    (89)             -              -              -             -               -          (178)              (1)         (5)                 -
Equity                                                1,259       (14,827)        (1,873)              -         (313)            (28)          (255)                -           -                 -
Money Market                                               -             -              -              -             -               -              -                -           -                 -
Mutual Fund                                                -             -              -              -             -               -              -                -           -                 -
              Total (A)                                 958       (14,808)        (1,871)           (91)         (480)          (105)           (448)             (30)         (6)                 -
Corporate Bonds                                           -              -              -              -             -              -               -                -           -                 -
Infrastructure Bonds                                      -              -              -              -             -              -               -                -           -                 -
Equity                                                  807        (1,445)           (14)              -             7              2              32                -           -                 -
Mutual Fund                                               -              -              -              -             -              -               -                -           -                 -
              Total(B)                                  807        (1,445)           (14)              -             7              2              32                -           -                 -

              Total (A+B)                             1,765       (16,253)        (1,885)           (91)         (473)          (103)           (416)             (30)         (6)                 -
Note: The above appreciation/depreciation is the difference between market value and book cost of the investment as at 31st March 2007.



                                            Enclosure - G : Fundwise and Classwise Appreciation/(Depreciation) in value of investments
                                                                                                                                                                                     (Amt. in Rs. ‘000)
Particulars                                      Debt Fund       Debt Plus      Debt Plus           Eq.           Eq.            Eq.      Eq. Growth           Eq.       Eq. Index        Eq. Index
                                                                     Fund        Pension           Fund          Gain         Growth          Pension        Index         Pension          Pension
                                                                                    Fund                         Fund           Fund            Fund          Fund            Fund         Fund - 2
Government Bonds                                      (725)          (215)              -             -             -          (136)               -             -              -                 -
Corporate Bonds                                    (12,755)       (13,341)          (863)            28           396          (104)              22             2              -                 -
Infrastructure Bonds                               (16,476)        (9,449)          (594)             1            49              3               -             -              -                 -
Equity                                                    -              -              -       752,561       308,430      (118,770)         (5,745)       187,821         19,921             (311)
Money Market                                              -              -              -             -             -              -               -             -              -                 -
Mutual Fund                                               -              -              -             -             -              -               -             -              -                 -
              Total (A)                            (29,956)       (23,005)        (1,457)       752,590       308,875      (119,007)         (5,723)       187,823         19,921             (311)
Corporate Bonds                                       (197)          (312)          (124)             -             -              -               -             -              -                 -
Infrastructure Bonds                                      -              -              -             -             -              -               -             -              -                 -
Equity                                                    -              -              -       232,402       241,793         57,489           6,811        95,890          8,152             2,645
Mutual Fund                                               -              -              -             -             -              -               -             -              -                 -
              Total(B)                                (197)          (312)          (124)       232,402       241,793         57,489           6,811        95,890          8,152             2,645

              Total (A+B)                          (30,153)       (23,317)        (1,581)       984,992       550,668        (61,518)          1,088       283,713         28,073             2,334
Note: The above appreciation/depreciation is the difference between market value and book cost of the investment as at 31st March 2007.      * ‘Eq. for Equity’
                                            Enclosure - G : Fundwise and Classwise Appreciation/(Depreciation) in value of investments
                                                                                                                                                                                         (Amt. in Rs. ‘000)
Particulars                                             Eq.            Eq.             Eq.              Eq.        Eq. Plus            Income            Life Long        Liquid    Liquid         Nifty
                                                    Mid Cap        Mid Cap    Mid Cap Plus             Plus        Pension               Fund                 Gain         Fund    Pension        Index
                                                      Fund       Plus Fund   Pension Fund             Fund           Fund                                     Fund                   Fund          Fund
Government Bonds                                          -              -              -             (67)               -                   -                  -              -         -            -
Corporate Bonds                                           1           (13)              -              549              68             (2,342)              (908)              -         -           20
Infrastructure Bonds                                   (12)              7              -               98               9             (1,115)              (611)              -         -            -
Equity                                               40,144         75,868          3,181          510,475          36,023                   -                  -              -         -     (41,303)
Money Market                                              -              -              -                -               -                   -                  -              -         -            -
Mutual Fund                                               -              -              -                -               -                   -                  -              -         -            -
              Total (A)                              40,133         75,862          3,181          511,055         36,100              (3,457)            (1,519)              -         -     (41,283)
Corporate Bonds                                           -              -              -                -               -                   -                   -             -         -            -
Infrastructure Bonds                                      -              -              -                -               -                   -                   -             -         -            -
Equity                                               18,804         38,161          2,051          429,914          33,463                   -                   -             -         -       27,036
Mutual Fund                                               -              -              -                -               -                   -                   -             -         -            -
              Total(B)                               18,804         38,161          2,051          429,914          33,463                   -                   -             -         -       27,036

              Total (A+B)                            58,937        114,023          5,232          940,969         69,563              (3,457)            (1,519)              -         -     (14,247)
Note: The above appreciation/depreciation is the difference between market value and book cost of the investment as at 31st March 2007.              * ‘Eq. for Equity’


                                            Enclosure - G : Fundwise and Classwise Appreciation/(Depreciation) in value of investments
                                                                                                                                                                                         (Amt. in Rs. ‘000)
Particulars                                        Premier       Premier        Premier          Premier      Premier       Premier              Pure          Pure       Secure    Stable         Total
                                                      Debt           Eq.       Eq. Gain      Eq. Growth       Income    Nifty Index               Eq.         Stock         Fund     Fund
                                                      Fund          Fund           Fund             Fund         Fund          Fund              Fund          Fund
Government Bonds                                          -            -             35               -             -             -                  -             -           -         -      (1,243)
Corporate Bonds                                     (1,807)            -            (1)              13         (618)             1                  -             -        (50)   (1,166)    (33,304)
Infrastructure Bonds                                (1,109)            -              -               -         (246)             -                  -             -        (27)     (235)            -
Equity                                                    -       40,844        14,526          (3,800)             -         1,233              7,754       (1,734)          18       949    (29,980)
Money Market                                              -            -              -               -             -             -                  -             -           -         -   1,812,048
Mutual Fund                                               -            -              -               -             -             -                  -             -           -         -            -
              Total (A)                             (2,916)       40,844        14,560          (3,787)         (864)         1,234              7,754       (1,734)        (59)    (452)    1,747,521
Corporate Bonds                                           -            -             -                -             -             -               -                -           -       30        (603)
Infrastructure Bonds                                      -            -             -                -             -             -               -                -           -        -            -
Equity                                                    -       29,324        28,538           20,831             -         9,530         (5,713)          (1,640)           4      840    1,275,715
Mutual Fund                                               -            -             -                -             -             -               -                -           -        -            -
              Total(B)                                    -       29,324        28,538           20,831             -         9,530         (5,713)          (1,640)           4      870    1,275,112

              Total (A+B)                           (2,916)       70,168        43,098           17,044         (864)         10,764             2,041       (3,374)        (55)      418    3,022,633
                                                                                                                              st
Note: The above appreciation/depreciation is the difference between market value and book cost of the investment as at 31 March 2007.               * ‘Eq. for Equity’
                                                                                                                                                                                                              87
88




     Cash Flow Statement for the year ended 31st March 2007
                                                                                                                                 (Amount in Rs. ‘000)

     Particulars                                                                        Current Year                           Previous Year
     Cash Flow from Operating Activities
     Receipts from customers
     Premium Income                                                               52,965,721                             31,153,497
     Premium & Other Deposits                                                        588,493                                 729,329
                                                                                                    53,554,214                               31,882,826
     Other Income
     Interest on overdue premium                                                      17,930                                  12,808
     Unit linked fund administration/management charges                              952,087                                 218,070
     Others                                                                           34,308                                  59,354
                                                                                                     1,004,325                                  290,232
     Cash generated from operations                                                                 54,558,539                             32,173,058
     Cash paid towards Operating Activities
     Commission                                                                   (8,328,257)                            (2,946,503)
     Claims                                                                       (6,958,837)                            (6,483,901)
     Other Expenses                                                          (10,515,387)                                (4,656,607)
     Direct Taxes Paid                                                               (76,261)                                (37,560)
     Loans, Advances & Deposits                                                    2,661,253                                 772,329
                                                                                                  (23,217,489)                             (13,352,242)
     Cash flow before extraordinary item                                                            31,341,050                             18,820,816
     Extraordinary Item                                                                                         –                                      –
     Net cash from Operating Activities ( A )                                                      31,341,050                              18,820,816
     Cash Flow from Investing Activities
     Purchase of Fixed Assets                                                      (319,404)                                (165,708)
     Purchase of Investments                                                 (83,123,594)                             (26,703,624)
                                                                                                  (83,442,998)                             (26,869,332)
     Interest & Dividend Received                                                    628,682                                 261,942
     Proceeds from Sale of Investments                                            50,927,847                                7,520,686
                                                                                                    51,556,529                                7,782,628
     Net cash from investing activities ( B )                                                     (31,886,469)                            (19,086,704)
     Cash Flow from Financing activities
     Proceeds from Issuance of Share Capital                                            1,342                                  1,551
     Share Premium received on issuance of Share Capital                           2,006,290                                2,318,745
                                                                                                     2,007,632                                2,320,296
     Net cash from Financing Activities ( C )                                                        2,007,632                              2,320,296
     Net increase in Cash & Cash Equivalents ( D = A + B + C )                                       1,462,213                              2,054,408
     Cash & Cash equivalents at the beginning of the Year                                            2,682,164                                 627,756
     Cash & Cash Equivalents at the end of the Year                                                  4,144,377                              2,682,164
     Components of cash & cash equivalents
     Cash and Bank Balances ( as per Sch 11)                                                         4,198,042                              2,958,503
     Temporary overdraft (as per Sch 13 )                                                              (53,665)                              (276,339)
                                                                                                     4,144,377                              2,682,164


     As per our report of even date attached
     For Kirtane & Pandit    For S. R. Batliboi & Co.   For Bajaj Allianz Life Insurance Company Limited
     Chartered Accountants   Chartered Accountants

     Suhas Deshpande         Hemal Shah                 Heinz Dollberg              Sanjiv Bajaj              Craig Ellis               Ranjit Gupta
     Partner                 Partner                    Director                    Director                  Director              Director
     Membership No. 31787    Membership No. 42650

     Place : Pune                                       Sam Ghosh                   Rajesh Viswanathan Andrew Wakeling Sameer Bakshi
     Date : 11th May 2007                               Chief Executive Officer     Chief Financial Officer   Appointed Actuary        Company Secretary
                                                                                                               89




               Balance sheet abstract and Company’s general business profile
I.     Registration Details

                              Registration No.                                        State Code
                                   15959                                                  11

                            Balance Sheet Date
                      31            03         2007
                     Date         Month        Year

II.    Capital raised during the year (Amount in Rs. ’000)

                                Public Issue                                          Rights Issue
                                      -                                                    -

                                Bonus Issue                                        Private Placement
                                    -                                                     1,342

III.   Position of mobilisation and deployment of funds (Amount in Rs. ’000)

                              Total Liabilities                                       Total Assets
                                 676,31,851                                            676,31,851

IV     Source of Funds (Amount in Rs. ’000)

                              Paid-up Capital                            Reserves and Surplus (shareholders)
                                 1,503,680                                            5,501,600

                               Secured Loans                                       Unsecured Loans
                                     -                                                    -

                            Policyholders funds                                          Others
                                 60,626,486                                                85

V      Application of Funds (Amount in Rs. ’000)

                              Net Fixed Assets                                        Investments
                                  535,694                                              67,455,659

                            Net Current Assets                                 Miscellaneous Expenditure
                                (3,138,261)                                                -

                   Accumulated loss (Shareholders)                                       Others
                             2,760,129                                                   18,630

VI. Performance of Company (Amount in Rs. ’000)

                                 Turnover                                          Total Expenditure
                                     -                                                     -

                         Profit/Loss before tax                                   Profit/Loss after tax
                                (717,006)                                               (717,033)

                            Accumulated Profits
                                    -

                            Earnings per share                                     Dividend rate (%)
                                  (4.77)                                                   -

Note: Being a life insurance company there is no turnover.
90




     VII. Generic Names of Principal Products/Services of Company


             Item code no (ITC code)              -


             Product description                  Life Insurance Business




     Note:

     The Company being a life insurance company, the accounts of the Company are not required to be made in accordance with
     Schedule VI. Further, the Insurance Act, 1938, requires the accounts of the Company to be split between Policyholders’ and
     Shareholders’ Account. In view of this, it is not possible to give all the information as required in Part III & Part IV of the
     Schedule.




     For Bajaj Allianz Life Insurance Company Limited

     Heinz Dollberg                    Sanjiv Bajaj                      Craig Ellis                   Ranjit Gupta
     Director                          Director                          Director                      Director

     Sam Ghosh                         Rajesh Viswanathan                Andrew Wakeling               Sameer Bakshi
     Chief Executive Officer           Chief Financial Officer           Appointed Actuary             Company Secretary

     Place: Pune
     Date: 11th May 2007
Notes

				
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