Annual Report-09 Cover.cdr - Bajaj Allianz

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001BOARD OF DIRECTORS :Mr. Rahul Bajaj (Chairman)Dr. Werner ZedeliusMr. Sanjay AsherMr. Niraj BajajMr. Sanjiv BajajMr. Heinz DollbergMr. Ranjit GuptaMr. S. H. KhanMr. Suraj MehtaMr. Dietmar RaichMr. Manu TandonMr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)AUDITORS :B S R & Co.Chartered AccountantsDALAL & SHAHChartered AccountantsMAIN BANKERS :Standard Chartered BankSyndicate BankAXIS BankDeutsche BankHDFC BankREGISTERED OFFICE :Bajaj Allianz Life Insurance Company LimitedGround Floor, G.E. Plaza, Airport Road,Yerawada, Pune- 411006.Tel : 020-6602 6777Fax : 020-6602 6789email : life@bajajallianz.co.inVisit us at : www.bajajallianzlife.co.in

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Annual Report 2008-2009INDEXDirectors' Report 2Management Report 4Auditors' Report 7Revenue Account : Policyholders' Account (Technical Account) 10Profit & Loss Account : Shareholders' Account (Non Technical Account) 15Balance Sheet 16Schedule 1-15 18Annexure to Revenue Account 34Notes to Financial Statements 40Cash Flow Statement 114Balance Sheet abstract & Company's general business profile 115

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001DIRECTORS' REPORTRahul BajajChairmanThe Directors have pleasure in presenting their Eighth AnnualReport & Audited Statements of Accounts for the year 2008- 091. Market scenario in the life insurance industry :Life insurance business had grown rapidly in the last few yearstill March 2008 on the back of high GDP growth, rising stockmarket, higher income levels and a massive expansion ofdistribution network by the insurance companies. However,due to slow down in domestic growth and global recession,Insurance industry too lost its momentum during 2008-09,accompanied by huge expense overrun viz. higher actualexpenses compared with provisions built in the products. Inthe Financial Year 2008-09, the life insurance industry had anegative growth of 6.3% vis-à-vis growth of 23.32% in theprevious year, garnering new business (NB) premium of Rs871 billion compared to NB premium of Rs 930 billion in FY2007-08. The growth rate of private sector companiescollapsed from 74% in 2007-08 to 1% in 2008-09 while LIC hasto contend with a negative growth of 10.5%. Accordingly,market share of private players increased from 36.36% in2007-08 to 39.21% in 2008-09.2. Summary of operations for the year:Business PerformanceThe Company was at the third position among the private lifeinsurers on NB premium basis for the financial year 2008-09compared to the second position in the previous year. It wroteNB of Rs. 44.9 Bn compared to Rs. 66.7 Bn in the previous yearregistering a negative growth rate of 32.7%. Market share ofthe Company dropped to 5.2% compared to 7.0% in theprevious year. The Company is at second position among theprivate life insurers on the basis of number of new policiesissued; with 2.59 million policies issued in the year 2008-09compared to 3.74 million policies issued in the previous year.The gross premium written for the financial year 2008-09 wasRs. 106.2 Bn, compared to Rs. 97.2 Bn in the previous year,registering a growth of 9.2%. The growth in the gross writtenpremium was due to the increase in renewal collections fromRs. 30.5 Bn in the previous year to Rs. 61.3 Bn in the currentyear, an increase of 101%. The annualized new businesspremium (considering single premium @ 10% and first yearpremium @ 100%) registered a negative growth of 32% fromRs 59.9 Bn in the previous year to Rs 40.6 Bn in the currentyear. The Company's market share on an annualized newbusiness premium basis reduced from 10.3% to 7.7% in theyear 2008-09. The Company earned a profit of Rs. 448 millionduring 2008-09, as compared to a loss of Rs. 159 million in theprevious year. In the current financial year, the Company isfocusing on improving employee productivity, policypersistency, operational processes and service levels.InvestmentsstThe Assets under Management as on 31 March 2009 were Rs171.56 billion which included shareholder funds Rs 7.7 Bn;traditional policyholder funds Rs 23.21 Bn and Unit linkedfunds of Rs 140.65 Bn. The unit-linked funds increased by28.40 % from Rs 109.54 Bn in the previous year.The traditional portfolios were managed keeping in mind theregulatory asset allocation requirements and deliveredsuperior returns at very low risk. The performance of the ULIPstfunds, for the year ended 31 March, 2009, were excellent.The funds outperformed both the benchmark as well as thepeer group in all categories. The cash fund outperformed byalmost 200 basis points over the CRISIL Composite LiquidIndex and the bond fund outperformed the CRISIL CompositeBond Index by almost 700 basis points. The large cap fundsand mid cap equity funds also outperformed the benchmarkhandsomely. The Pure Stock Fund, outperformed the NiftyIndex by almost 20%.ProductsThe Company launched a basket of 15 new products during theyear, with a view to providing additional products to thecustomers.The Company now has 38 individual products and 14 groupproducts catering to all strata of the society.Corporate CommunicationsndThe Company was ranked 32 in the Economic Times mostthtrusted service brand survey and was ranked 30 in the PitchMagazine India's top 50 service brand. The Companysponsored Rajasthan Royal's Team in the Indian PremierLeague which went on to win the tournament and emergedas a successful campaign for the Company. The Companyalso sponsored Miss Confident section of Femina Miss IndiaPageant. The Company implemented various TV and Radio2

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Directors' Report for the Financial Year ended 31st March 2009Annual Report 2008-2009campaigns with focus on general entertainment, news andniche channels.3.1 Capital:Capital base of the Company was maintained at Rs.12.10 Bn.with no fresh infusion in FY 2008-09. The Company placedspecial emphasis on capital efficiency and had the highestratio of gross written premium to capital invested byshareholders among the private sector.3.2 IRDA Registration:The Certificate of Registration from the IRDA to carry on lifeinsurance business was renewed for the year 2009-10.4. Particulars regarding conservation of energy andtechnology absorption:Since the Company did not carry out any manufacturingactivity, the Companies (Disclosure of Particulars in the reportof the Board of Directors) Rules, 1988 are not applicable.5. Foreign exchange earnings and expenditure:Earnings in foreign currencyExpenditure in foreign currency6. Particulars of employees:NILRs. 129 millionAs required by the provisions of sub-section 2A of Section 217of the Companies Act, 1956 read with the Companies(Particulars of Employees) Rules, 1975 as amended, thenames and other particulars of the employees are set out inthe annexure to the Directors' Report. The report andAccounts are being sent to the shareholders of the Companyexcluding the said information. Any shareholder interested inobtaining such particulars may write to the CompanySecretary at the Registered Office of the Company.7. Directors:Mr. Sanjay Asher and Mr. Suraj Mehta retire by rotation andbeing eligible offer themselves for re-appointment asDirectors.8. Directors' responsibility statement:In accordance with the requirements of sub-section 2AA ofSection 217 of the Companies Act, 1956, the Board ofDirectors wish to confirm the following:(i) that in preparation of the annual accounts, theapplicable accounting standards have been followedalong with proper explanation relating to materialdepartures;(ii) that such accounting policies have been selected andapplied consistently and made judgments andestimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of thestCompany as on 31 March 2009 and of the profit ofthe Company for that year;(iii)that proper and sufficient care has been taken for themaintenance of adequate accounting records inaccordance with the provisions of the Act forsafeguarding the assets of the Company and forpreventing and detecting fraud and otherirregularities;(iv) that the annual accounts have been prepared on agoing concern basis.9. Audit Committee:The Audit Committee of Board of Directors constituted inaccordance with the provisions of Section 292A of thethCompanies Act, 1956 held their meetings on 12 May 2008thand 4 December 2008 and reviewed the operations andaccounts of the Company.10. Auditors:The Company appointed M/s. B S R & Co., CharteredAccountants and M/s. Dalal and Shah, Chartered Accountants,as joint statutory auditors of the Company in the last AnnualGeneral meeting. They hold office up to the conclusion of theEighth Annual General meeting of the Company.The shareholders are requested to appoint the auditors forthe period from the conclusion of the ensuing annual generalmeeting till the conclusion of the next annual generalmeeting and to fix their remuneration.11. Appreciation:The Board is grateful to the IRDA and other regulatoryauthorities for their continued support. The Board is alsograteful to its Policyholders, Bankers, Intermediaries andChannel Partners for their continued support.The Directors take this opportunity to thank the concernedemployees of Bajaj Finserv Limited and Allianz SE for theirinvaluable contribution in guiding the working of theCompany.The Directors also take this opportunity to thank themanagement & employees for their hard work, dedicationand commitment.On behalf of Board of Directors ofBajaj Allianz Life Insurance Company Ltd.Rahul BajajChairmanPuneth11 May 20093

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001MANAGEMENT REPORTWith respect to the operations of Bajaj Allianz Life InsurancestCompany Limited ('the Company') for the financial year 1stApril 2008 to 31 March 2009 and results thereof, theManagement of the Company confirms and declares that:1. The registration certificate granted by InsuranceRegulatory and Development Authority (IRDA) is validand the same has been renewed for the year 2009 - 2010.2. We certify all relevant statutory dues payable by theCompany have been generally deposited on time.3. During the current year the Company has transferred111,358,900 shares from Bajaj Auto Limited to BajajFinserv Limited vide order of the High Court of Judicaturethat Mumbai dated 18 December 2007 granting approvalfor the scheme of arrangement. The transfer has alsobeen approved by the Insurance Regulatory andrdDevelopment Authority (IRDA) and was made on 23 May2008.4. The management has not directly or indirectly investedoutside India, the funds of the holders of policies issued inIndia.5. The required solvency margins have been maintained asrequired by the IRDA.6. We certify that the values of all the assets have beenreviewed on the date of Balance Sheet and in themanagement's belief, the assets set forth under each ofthe headings in the Balance Sheet are shown in theaggregate at amounts not exceeding their realizable ormarket value under their related headings - “Loans”,“Investments”, “Outstanding Premiums”, “Incomeaccrued on investments”, “Amounts due from otherentities carrying on insurance business (includingamounts due from reinsurers)”, “Cash” and the severalitems specified under “Advances” and “Other Accounts”.Market value of investment in debt securities (other thanunit linked funds) on the date of Balance Sheet, which arevalued at amortised cost as per IRDA regulations, is higherthan their carrying amount.7. We certify that, no part of the life insurance fund has beendirectly or indirectly applied in contravention of theInsurance Act, 1938 (4 of 1938) relating to the applicationand investment of the life insurance fund.8. The Company recognizes the risks associated with the lifeinsurance business and manages the risks by adoptingprudent policies to counter the key risks of the Company –namely underwriting and investment risks.The Company has established robust underwritingprocedures to mitigate underwriting risks. Additionallythe Company has entered into reinsurance arrangementswherein it reinsures risk in excess of its retention limits tomitigate its risk exposure.The investment risk is managed by laying downappropriate guidelines in the Investment Policy. TheInvestment Policy is formulated by the InvestmentCommittee and approved by the Board of Directors. Theinvestment policy is reviewed at least once a year foralignment with the Company's latest business plan andother developments during the year.9. The Company does not have operations in any othercountry.10. Claim settlement time for the claims lodged has beenaround 7 days from the date of receipt of completerequirements. Ageing of claims registered and notsettled, pending for receipt of complete requirement isgiven below.For Linked BusinessFor Traditional BusinessCurrent YearCurrent Year(Rs. In lakh)Previous YearPeriod No. of Amount No. of AmountClaims involved Claims involvedLess than 30 days 330 663.40 442 893.9230 days to 6 months 223 649.88 296 555.966 months to 1 year 117 214.86 70 102.101 year to 5 years 116 175.41 47 81.015 years & above Nil Nil Nil Nil(Rs. In lakh)Previous YearPeriod No. of Amount No. of AmountClaims involved Claims involvedLess than 30 days 645 221.15 206 122.9630 days to 6 months 531 203.26 343 132.676 months to 1 year 269 180.97 104 88.421year to 5 years 261 220.13 161 205.215 years & above 6 7.92 1 4.3211. We certify that the values, as shown in the Balance Sheet,of the investments (other than unit linked investments),which consists of fixed income securities, equity sharesand mutual fund units that have been valued as peraccounting policies prescribed by IRDA. Market valueshave been ascertained for equities on the basis of lower of4

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Management Report For The Year Ended 31st March 2009Annual Report 2008-2009the closing prices as on the balance sheet date on TheNational Stock Exchange of India Ltd. (NSE) and TheBombay Stock Exchange Ltd, Mumbai (BSE). For fixedincome securities, valuation is based on procedure issuedby Fixed Income and Money Market and DerivativeDealers Association of India (FIMMDA). The investmentsin the Mutual Funds are valued at the Net Asset Values(NAV) of these Mutual funds as on the Balance Sheet date.We certify that the unit linked investments have beenvalued on the basis as stated below:Equities have been valued at market values which havebeen ascertained on the basis of the last quoted closingprice on the NSE. In case the equity shares are not listed onthe NSE, then they are valued on the last quoted closingprice on BSE. Government securities are valued at pricesobtained from Credit Rating Information Services of IndiaLtd. (CRISIL). Corporate bonds and debentures are valuedon the basis of CRISIL Bond Valuer. Treasury bills,certificate of deposits and commercial papers are valuedat cost plus accretion at yield to maturity. Mutual fundunits have been valued at the last available Net AssetValue declared by the respective mutual fund.12. The Company has invested (other than unit linked funds)mainly in approved Government securities and AAA, AA+or AA rated bonds. The primary aim while investing is togenerate adequate return while minimizing risk. Theemphasis is also on the liquidity of investments to ensurethat the Company meets all outgoings related to claimsand other operations. While most of the investments arein fixed income securities in the form of Government ofIndia securities or Corporate Bonds with strong creditrating, a small portion is also invested in Equity shares.Based on the past track record, the Management isconfident of the quality and performance of theinvestments.13. The Management of Bajaj Allianz Life Insurance CompanyLimited certifies that:a) The financial statements of Bajaj Allianz Life InsuranceCompany Limited have been prepared in accordancewith the applicable accounting standards andprinciples and policies with no departures;b) The Management has adopted accounting policiesand applied them consistently and made judgementsand estimates that are reasonable and prudent so asto give a true and fair view of the state of the affairs ofthe Company at the end of the financial year and of theoperating profit as per Policyholders' Account(Technical Account) and of the Loss as perShareholders' Account (Non Technical Account) of theCompany for the year;c) The Management has taken proper and sufficientcare for the maintenance of adequate accountingrecords in accordance with the applicable provisionsof the Insurance Act, 1938 (4 of 1938) and CompaniesAct, 1956 (1 of 1956), for safeguarding the assets ofthe Company and for preventing and detecting fraudand other irregularities;d) The financial statements have been prepared on agoing concern basis;e) The Company has an internal audit systemcommensurate with the size of the Company andnature of the business.14. The following are the payments made to individuals,firms, companies and organizations in which the directorsof the insurer are interested:Sl. Name of the Director Entity in which Director Interested as Amount of PaymentNo. is interested during the financial year(Rs. In lakh)1 Mr. Rahul Bajaj,Mr. Sanjiv Bajaj andMr. S. H. KhanBajaj Finserv Ltd. Director 52.45DirectorDirector2 Mr. Rahul Bajaj, Bajaj Auto Ltd. Director 6.82Mr. Niraj Bajaj, (Now known as DirectorMr. Sanjiv Bajaj and Bajaj Holdings DirectorMr. S. H. Khan and Investment Ltd.) Director3 Mr. Rahul Bajaj and Bajaj Auto Finance Ltd. Director 6.00Mr. Sanjiv BajajDirector4 Mr. Rahul Bajaj, Bajaj Allianz General Director 165.79Dr Werner Zedelius, Insurance Company Ltd. DirectorMr. Niraj Bajaj,DirectorMr. Sanjiv Bajaj,DirectorMr. Heinz Dollberg,Director5

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Sl. Name of the Director Entity in which Director Interested as Amount of PaymentNo. is interested during the financial year(Rs. In lakh)Mr. Ranjit Gupta,Mr. Sanjay Asher,Mr. Suraj Mehta,Mr. S. H. Khan,Mr. Manu Tandon andMr. Kamesh GoyalDirectorDirectorDirectorDirectorDirectorAlternate Director5 Mr. Rahul Bajaj, Hind Musafir Agency Limited Shareholding exceeds 2% 0.77Mr. Niraj Bajaj and Shareholding exceeds 2%Mr. Sanjiv BajajRelative is Director6 Dr. Werner Zedelius Allianz Insurance Management Director 0.60Asia Pacific Pte Limited7 Mr. Heinz Dollberg Bajaj Allianz Financial Director 1,849.68Mr. Ranjit Gupta Distributors Ltd. DirectorMr. Kamesh GoyalDirectorFor Bajaj Allianz Life Insurance Company LimitedRahul Bajaj Kamesh Goyal Niraj BajajChairman Alternate Director & Chief Executive OfficerDirectorSanjiv Bajaj S.H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head – Legal & CompliancePlace : PunethDate : 11 May 20096

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAuditors' ReportAnnual Report 2008-2009AUDITORS' REPORTTo the Members of Bajaj Allianz Life Insurance CompanyLimited1. We have audited the attached Balance Sheet of BajajAllianz Life Insurance Company Limited ('the Company')as at March 31, 2009, the related Policyholders' RevenueAccount, the Shareholders' Profit and Loss Account andthe Receipts and Payments Account for the year ended onthat date annexed thereto, which we have signed underreference to this report. These financial statements arethe responsibility of the Company's management. Ourresponsibility is to express an opinion on these financialstatements based on our audit.2. We conducted our audit in accordance with auditingstandards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtainreasonable assurance about whether the financialstatements are free of material misstatement. An auditincludes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements.An audit also includes assessing the accounting principlesused and significant estimates made by management, aswell as evaluating the overall financial statementpresentation. We believe that our audit provides areasonable basis for our opinion.3. The Balance Sheet, the Policyholders' Revenue Account,the Shareholders' Profit and Loss Account and theReceipts and Payments Account have been drawn up inaccordance with the Insurance Act, 1938 (Act 4 of 1938),Insurance Regulatory and Development Act, 1999,Insurance Regulatory and Development Authority(Preparation of Financial Statements and Auditor's Reportof Insurance Companies) Regulations 2002 ('theRegulations') read with Section 211 of the Companies Act,1956.4. As required by the Regulations, we set out in theAnnexure, a statement certifying the matters specified inparagraph 4 of Schedule C to the Regulations.5. Further to our comments in the Annexure referred toabove, we report that:(a) We have obtained all the information andexplanations, which to the best of our knowledge andbelief were necessary for the purposes of the auditand have found them to be satisfactory;(b) In our opinion and to the best of our information andaccording to the explanations given to us, properbooks of account as required by law have beenmaintained by the Company, so far as appears fromour examination of those books;(c) As the Company's financial accounting system iscentralized at head office, no returns for the purposesof our audit are prepared at the branches and otheroffices of the Company;(d) The Balance Sheet, the Policyholders' RevenueAccount, the Shareholders' Profit and Loss Accountand the Receipts and Payments Account referred to inthis report are in agreement with the books ofaccount;(e) The actuarial valuation of liabilities for life policies inforce is the responsibility of the Company's AppointedActuary ('the Appointed Actuary'). The actuarialvaluation of these liabilities as at March 31, 2009 hasbeen duly certified by the Appointed Actuary. Theappointed Actuary has also certified in his opinion, theassumptions for such valuation are in accordancewith the guidelines and norms, if any, issued by theInsurance Regulatory Development Authority('IRDA') ('Authority) and the Actuarial Society of Indiain concurrence with the Authority. We have reliedupon Appointed Actuary's certificate in this regard forforming our opinion on the financial statements ofthe Company;(f) On the basis of written representations received fromthe Directors of the Company, as on March 31, 2009and taken on record by the Board of Directors, none ofthe Directors are is disqualified as on March 31, 2009from being appointed as a Director in terms of clause(g) of sub-section (1) of Section 274 of the CompaniesAct, 1956.6 In our opinion and to the best of our information andaccording to the explanations given to us, we furtherreport that:(a) The Investments have been valued in accordance withthe provisions of the Insurance Act, 1938, theRegulations and / or orders / directions issued by IRDAin this behalf;(b) The accounting policies selected by the Company areappropriate and are in compliance with the applicableAccounting Standards referred to in sub-section (3C)of section 211 of the Companies Act, 1956 and theRules framed there under and with the accountingprinciples as prescribed in the Insurance Regulatoryand Development Authority (Preparation of FinancialStatements and Auditor's Report of InsuranceCompanies) Regulations, 2002, ('the Regulations')7

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001and orders / directions issued by IRDA in this behalf;(c) The Balance sheet, the Policyholders' RevenueAccount, the Shareholders' Profit and Loss Accountand the Receipts and Payments Account dealt with bythis report comply with the Accounting Standardsreferred to in sub-section (3C) of section 211 of theCompanies Act, 1956 and the Rules framed thereunder to the extent they are not inconsistent with theaccounting principles prescribed in the Regulationsand orders / directions issued by IRDA in this behalf;7. The Balance Sheet, the Policyholders' Revenue Account,the Shareholders' Profit and Loss Account and theReceipts and Payments Account together with the notesthereon and attached thereto are prepared in accordancewith the requirements of the Regulations, the InsuranceAct, 1938, the Insurance Regulatory and DevelopmentAuthority Act, 1999 and the Companies Act, 1956, to theextent applicable and in the manner so required and givea true and fair view in conformity with the accountingprinciples generally accepted in India as applicable toinsurance companies:(i) in the case of the Balance Sheet, of the state of affairsof the Company as at March, 31 2009;(ii) in the case of Policyholders' Revenue Account, of thenet surplus for the year ended on that date;(iii)in the case of Shareholders' Profit and Loss account, ofthe loss for the year ended on that date; and(iv) in the case of the Receipts and Payments Account, ofthe receipts and payments for the year ended on thatdate.8 Further, on the basis of our examination of books andrecords of the Company and according to the informationand explanations given to us, we certify to the best of ourknowledge and belief that:(a) We have reviewed the Management Report attachedto the financial statements for the year ended 31March 2009, and have found no apparent mistake ormaterial inconsistencies with the financialstatements; and(b) Based on information and explanations receivedduring normal course of the audit, management'srepresentations made to us and the compliancecertificate submitted to the Board by the officers ofthe Company charged with Compliance and the samebeing noted by the Board, nothing has come to ourattention which causes us to believe that theCompany has not complied with the terms andconditions of registration as per subsection 4 ofsection 3 of the Insurance Act, 1938.Dalal & ShahChartered AccountantsB S R & Co.Chartered AccountantsAnish AminPartnerJuzer MiyajiwalaPartnerMembership No. 40451 Membership No. 47483Place : PunePlace : PunethDate : 11 May 2009thDate : 11 May 20098

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Revenue Account for the year ended 31st March 2009Policyholders' Account (Technical Account)Particulars Schedule Current Year ParticipatingIndividualAssuranceIndividualPensionPREMIUMS EARNED - Net(a) Premium 1 106,245,213 4,263,688 65,407(b) Reinsurance ceded (Refer Schedule 16 Note 16) (234,503) (53,483) (845)(c) Reinsurance accepted - - -INCOME FROM INVESTMENTS(a) Interest, Dividend & Rent - Gross 4,128,837 845,525 25,677(b) Profit on sale / redemption of investments 4,592,135 116,436 -(c) (Loss on sale / redemption of investments) (21,740,082) (66,671) -(d) Transfer/Gain on revaluation/ change in fair value (19,189,517) - -(e) Other investment income 1,059,927 - -OTHER INCOMECOMMISSIONOPERATING EXPENSES RELATED TO INSURANCE BUSINESSBENEFIT PAID (Net)4 7,565,134 518,834 16,261Interim Bonuses Paid 474 474 -Change in valuation of liability in respect of life policiesin force (Refer Schedule 16 Note 1 (e) and Note 8 )(a) Gross 7,369,161 3,362,143 66,526(b) Fund Reserve (Refer Schedule 16 Note 1(e)) 31,111,301 - -(c) Amount ceded in Re-insurance - - -(d) Amount accepted in Re-insurance - - -SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)APPROPRIATIONSReserve for lapsed unit linked policies unlikely to be revived 990,835 - -(Refer Schedule 16 Note 1(e) and Note 8)Transfer to Shareholders' account (41,548) (40,429) (1,119)DETAILS OF TOTAL SURPLUSInterim Bonuses Paid (a) 474 474 -Allocation of Bonus to policyholders (b) 373,927 363,860 10,067Surplus shown in the Revenue Account (c) 1,154,962 81,106 58710SUB-TOTAL 106,010,710 4,210,205 64,562(31,148,700) 895,290 25,677131,087 43,291 470Contribution from the Shareholders' account 1,639,081 - -(Refer Schedule 16 Note 15)SUB-TOTAL (29,378,532) 938,581 26,147TOTAL (A) 76,632,178 5,148,786 90,7092 10,515,493 538,635 1,2723 18,757,915 628,190 6,033Provision for doubtful debts - - -Bad Debts written off - - -Provision for Fringe Benefit Tax 86,455 3,050 30Provision for Income Tax 71,283 16,354 -Provisions (other than taxation)(a) For diminution in the value of investments (net) - - -(b) Others - - -TOTAL (B) 29,431,146 1,186,229 7,335TOTAL (C) 46,046,070 3,881,451 82,7871,154,962 81,106 587Balance of previous year 949,408 877,422 2,392Balance being funds for future appropriations 1,071,987 918,099 1,860Total Surplus [ (a)+ (b)+ (c) ] 1,529,363 445,440 10,654

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Revenue Account for the year ended 31st March 2009Policyholders' Account (Technical Account)Particulars Schedule Previous Year ParticipatingIndividualAssuranceIndividualPensionPREMIUMS EARNED - Net(a) Premium 1 97,253,110 3,431,785 65,575(b) Reinsurance ceded (Refer Schedule 16 Note 16) (132,718) (33,189) (585)(c) Reinsurance accepted - - -INCOME FROM INVESTMENTS(a) Interest, Dividend & Rent - Gross 1,958,552 532,794 19,315(b) Profit on sale / redemption of investments 9,000,892 136,390 -(c) (Loss on sale / redemption of investments) (1,552,580) (24,332) (44)(d) Transfer/Gain on revaluation/ change in fair value (3,008,441) - -(e) Other investment income 603,495 - -OTHER INCOME117,643 32,258 389Contribution from the Shareholders' account 2,951,827 - -(Refer Schedule 16 Note 15)COMMISSIONOPERATING EXPENSES RELATED TO INSURANCE BUSINESS 3 20,043,360 660,996 9,559Provision for doubtful debts - - -Bad Debts written off - - -Provision for Fringe Benefit Tax 93,313 3,082 45Provision for Income Tax - - -Provisions (other than taxation)(a) For diminution in the value of investments (net) - - -(b) Others - - -BENEFIT PAID (Net)4 8,514,005 318,654 2,258Interim Bonuses Paid 2,728 2,728 -Change in valuation of liability in respect of life policiesin force (Refer Schedule 16 Note 1 (e) and Note 8 )(a) Gross 3,916,140 2,462,954 72,401(b) Fund Reserve (Refer Schedule 16 Note 1(e)) 57,673,296 - -(c) Amount ceded in Re-insurance - - -(d) Amount accepted in Re-insurance - - -SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)APPROPRIATIONSReserve for lapsed unit linked policies unlikely to be revived (1,601,620) - -(Refer Schedule 16 Note 1(e) and Note 8)Transfer to Shareholders' account (32,706) (31,678) (1,028)DETAILS OF TOTAL SURPLUSInterim Bonuses Paid (a) 2,728 2,728 -Allocation of Bonus to policyholders (b) 294,355 285,105 9,250Surplus shown in the Revenue Account (c) 1,980,316 329,701 (893)12SUB-TOTAL 97,120,392 3,398,596 64,9907,001,918 644,852 19,271SUB-TOTAL 10,071,388 677,110 19,660TOTAL (A) 107,191,780 4,075,706 84,6502 14,968,622 297,591 1,280TOTAL (B) 35,105,295 961,669 10,884TOTAL (C) 70,106,169 2,784,336 74,6591,980,316 329,701 (893)Balance of previous year 670,923 585,104 4,383Transitional Adjustments on revision to Valuation of employees benefit (67,505) (5,705) (70)Balance being funds for future appropriations 949,408 877,422 2,392Total Surplus [ (a)+ (b)+ (c) ] 2,277,399 617,534 8,357

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Revenue Account for the year ended 31st March 2009 Annual Report 2008-2009(Amount in Rs. '000)Non ParticipatingLinkedIndividual Individual Individual Group Individual Individual Group GroupAssurance Health Annuity Assurance Assurance Pension Superannuation Gratuity36,589 115,838 16,729 491,576 88,217,832 3,262,864 220,891 1,393,431(2,505) (17,346) - (16,019) (63,026) (48) - -- - - - - - - -34,084 98,492 16,729 475,557 88,154,806 3,262,816 220,891 1,393,43115,283 1,220 4,307 22,978 1,273,737 47,849 6,368 34,701116 - - 583 8,265,445 533,232 9,883 55,243(52) - (46) (114) (1,441,220) (79,330) (1,137) (6,305)- - - - (2,661,741) (309,353) (5,667) (31,680)- - - - 569,556 27,662 953 5,32415,347 1,220 4,261 23,447 6,005,777 220,060 10,400 57,283152 112 2 58 81,850 2,623 26 173- - - 11,257 2,539,007 365,506 4,391 31,66615,499 1,332 4,263 34,762 8,626,634 588,189 14,817 89,12249,583 99,824 20,992 510,319 96,781,440 3,851,005 235,708 1,482,5532,520 25,812 160 13,431 14,464,765 163,063 - -8,118 21,999 455 13,310 18,684,689 598,873 5,982 39,379- - - - - - - -- - - - - - - -38 58 2 62 87,025 2,789 28 184- - - - - - - -- - - - - - - -- - - - - - - -10,676 47,869 617 26,803 33,236,479 764,725 6,010 39,56319,070 7,245 4,468 390,430 7,259,390 465,314 2,766 44,410- - - - - - - -24,284 25,302 19,114 116,486 1,137,626 53,873 - 4,100- - - - 53,486,426 2,565,532 226,920 1,394,418- - - - - - - -- - - - - - - -43,354 32,547 23,582 506,916 61,883,442 3,084,719 229,686 1,442,928(4,447) 19,408 (3,207) (23,400) 1,661,519 1,561 12 6239,757 11,204 7,019 23,456 - - - -(137) - (3) (56) (59,899) (1,561) (12) (62)- - - - (1,601,620) - - -- - - - - - - -35,173 30,612 3,809 - - - - -- - - - - - - -- - - - - - - -(4,447) 19,408 (3,207) (23,400) 1,661,519 1,561 12 62(4,447) 19,408 (3,207) (23,400) 1,661,519 1,561 12 6213

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Revenue Account for the year ended 31st March 2009Policyholders' Account (Technical Account)Notes to Financial Statements 16As required by Section 40-B of the Insurance Act, 1938, we certify that all expenses of Management in respect of Life Insurancebusiness 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 attachedFor Dalal & Shah For B S R & Co For Bajaj Allianz Life Insurance Company LimitedChartered Accountants Chartered AccountantsAnish Amin Juzer Miyajiwala Rahul Bajaj Kamesh Goyal Niraj BajajPartner Partner Chairman Alternate Director and DirectorMembership No. 40451 Membership No. 47483 Chief Executive OfficerPlace : PunePlace : PunethDate : 11 May 2009thDate : 11 May 2009Sanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &Compliance14

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Profit & Loss Account for the year ended 31st March 2009Annual Report 2008-2009Form A- PLProfit & Loss account for the year ended 31st March 2009Shareholders' Account (Non Technical Account)Notes to Financial statements 16The accompanying notes and schedules form an integral part of the financial statements. As per our report of even date attachedFor Dalal & Shah For B S R & Co For Bajaj Allianz Life Insurance Company LimitedChartered Accountants Chartered AccountantsAnish Amin Juzer Miyajiwala Rahul Bajaj Kamesh Goyal Niraj BajajPartner Partner Chairman Alternate Director and DirectorMembership No. 40451 Membership No. 47483 Chief Executive OfficerSanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director Director(Amount in Rs. '000)Particulars Current Current Previous PreviousYear Year Year YearAmounts transferred from the 41,548 32,706Policyholders' Account (Technical Account)INCOME FROM INVESTMENTS(a) Interest, Dividends & Rent - Gross 846,251 764,027(b) Profit on sale / redemption of investments 79,971 53,980(c) (Loss on sale / redemption of investments) (19,473) (22,971)(d) Transfer/Gain on revaluation / change in fair value - -OTHER INCOME- -TOTAL(A) 906,749 795,036Expenses other than those directly related to theinsurance business (Refer Schedule 16 Note 11) 15,943 14,740Provisions (Other than Taxation) - -Contribution to the Policyholders' Fund(Refer Schedule 16 Note 15)ParticipatingIndividual Assurance - -Individual Pension - -Non ParticipatingIndividual Assurance - -Individual Health - -Individual Annuity - -Group Assurance - 11,257LinkedIndividual Assurance 1,290,084 2,539,007Individual Pension 348,191 365,506Group Superannuation - 4,391Group Gratuity 806 1,639,081 31,666 2,951,827PROFIT / (LOSS) before TaxTOTAL(B) 1,655,024 2,966,567(706,727) (2,138,825)Provision for Taxation including Wealth Tax 85 80PROFIT / (LOSS) after Tax(706,812) (2,138,905)Balance at the beginning of the year (4,899,034) (2,760,129)PROFIT/(LOSS) CARRIED FORWARD TO BALANCE SHEET(5,605,846) (4,899,034)Earning Per Share (Basic & Diluted) (Refer Schedule 16 Note 18) (4.69) (14.22)Rajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &CompliancePlace : PunePlace : PunethDate : 11 May 2009thDate : 11 May 200915

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Form A- BSBalance Sheet as at 31st March 2009(Amount in Rs. '000)Particulars Schedule Current Current Previous PreviousYear Year Year YearSOURCES OF FUNDSSHAREHOLDERS' FUNDSShare Capital 5 1,507,090 1,507,090Reserves and Surplus 6 10,599,550 10,599,550Credit/(Debit) Fair Value Change Account - 102BORROWINGSSUB TOTAL 12,106,640 12,106,7427 - -POLICYHOLDERS' FUNDSCredit/(Debit) Fair Value Change Account 7,014 99,460Policy Liabilities (Refer Schedule 16 Note 8)ParticipatingIndividual Assurance 11,319,055 7,956,912Individual Pension 350,390 283,864Non ParticipatingIndividual Assurance 191,904 169,977Individual Health 106,164 33,645Individual Annuity 101,389 62,357Group Assurance 1,222,238 314,661LinkedIndividual Assurance 4,501,717 1,728,642Individual Pension 194,008 74,888Group Superannuation 1,695 -Group Gratuity 9,647 17,998,207 4,100 10,629,046Insurance Reserves - -Provision For Linked LiabilitiesLinked Liabilities 159,828,323 109,527,505Fair value change (19,175,325) 140,652,998 14,192 109,541,697SUB TOTAL 158,658,219 120,270,203FUNDS FOR FUTURE APPROPRIATIONSParticipatingIndividual Assurance 918,099 877,422Individual Pension 1,860 2,392Non ParticipatingIndividual Assurance 43,964 35,173Individual Health 94,719 30,612Individual Annuity 2,708 3,809Group Assurance 9,996 -LinkedIndividual Assurance - -Individual Pension - -Group Superannuation 641 -Group Gratuity - -1,071,987 949,408Reserve for Lapsed unit linked policies unlikely to be revived 3,951,268 5,023,255 2,960,433 3,909,841TOTAL 175,788,114 136,286,78616

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Balance Sheet as at 31st March 2009Annual Report 2008-2009Form A- BSBalance Sheet as at 31st March 2009(Amount in Rs. '000)Particulars Schedule Current Current Previous PreviousYear Year Year YearAPPLICATION OF FUNDSINVESTMENTSShareholders' 8 7,695,214 11,458,855Policyholders'8AParticipatingIndividual Assurance 12,244,503 8,974,379Individual Pension 354,548 287,815Non ParticipatingIndividual Assurance 238,972 205,672Individual Health 201,337 64,511Individual Annuity 104,611 66,586Group Assurance 1,240,846 314,840LinkedIndividual Assurance 8,473,612 4,690,975Individual Pension 337,669 75,066Group Superannuation 2,439 2,244Group Gratuity 18,611 4,88023,217,148 14,686,9688B 140,652,998 109,541,697ASSETS HELD TO COVER LINKED LIABILITIES(Refer Schedule 16 Note 24)LOANS 9 76,970 30,937FIXED ASSETS 10Gross Block 2,402,401 1,644,267Less : Accumulated Depreciation 1,182,816 734,645Net Block 10 1,219,585 909,622Capital work in progress 424,832 181,0561,644,417 1,090,678CURRENT ASSETSCash and bank balances 11 3,552,963 3,730,894Advances and other Assets 12 1,828,423 1,367,906Sub-Total(A) 5,381,386 5,098,800LESS: CURRENT LIABILITIES AND PROVISIONSCurrent liabilities 13 8,052,356 10,244,719Provisions 14 433,509 275,464Sub-Total(B) 8,485,865 10,520,183NET CURRENT ASSETS (C) = (A-B)MISCELLANEOUS EXPENDITURE(To the extent not written off or adjusted )15(3,104,479)-(5,421,383)-DEBIT BALANCE IN PROFIT & LOSS ACCOUNT5,605,846 4,899,034(Shareholders' account )Total 175,788,114 136,286,786Notes to Financial statements 16The accompanying notes and schedules form an integral part of the financial statements.As per our report of even date attachedFor Dalal & Shah For B S R & Co For Bajaj Allianz Life Insurance Company LimitedChartered Accountants Chartered AccountantsAnish Amin Juzer Miyajiwala Rahul Bajaj Kamesh Goyal Niraj BajajPartner Partner Chairman Alternate Director and DirectorMembership No. 40451 Membership No. 47483 Chief Executive OfficerSanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &CompliancePlace : PunePlace : PunethDate : 11 May 2009thDate : 11 May 200917

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001stSchedules forming part of financial statements for the ended 31 March 2009Schedule - 1 : Premium (Net of Service Tax)Particulars Current Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityFirst Year Premium 40,123,867 1,072,543 2,672 46,294 246,106 - 1,443,233 34,386,253 1,545,927 132,804 1,248,035Renewal Premium 61,330,909 3,191,083 62,735 20,671 25,953 - 137,137 56,330,272 1,531,287 - 31,771Single Premium 4,790,437 62 - 11,348 - 35,389 85,955 4,200,648 457,035 - -Total Premium 106,245,213 4,263,688 65,407 78,313 272,059 35,389 1,666,325 94,917,173 3,534,249 132,804 1,279,806Premium Income fromBusiness written:In India 106,245,213 4,263,688 65,407 78,313 272,059 35,389 1,666,325 94,917,173 3,534,249 132,804 1,279,806Outside India - - - - - - - - - - -Total Premium 106,245,213 4,263,688 65,407 78,313 272,059 35,389 1,666,325 94,917,173 3,534,249 132,804 1,279,806Particulars Previous Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityFirst Year Premium 59,198,105 483,699 1,684 11,557 111,379 - 194,422 55,015,353 1,780,822 220,891 1,378,298Renewal Premium 30,508,296 2,948,086 63,891 10,924 4,459 - 211,909 26,551,653 702,241 - 15,133Single Premium 7,546,709 - - 14,108 - 16,729 85,245 6,650,826 779,801 - -Total Premium 97,253,110 3,431,785 65,575 36,589 115,838 16,729 491,576 88,217,832 3,262,864 220,891 1,393,431Premium Income fromBusiness written:In India 97,253,110 3,431,785 65,575 36,589 115,838 16,729 491,576 88,217,832 3,262,864 220,891 1,393,431Outside India - - - - - - - - - - -Total Premium 97,253,110 3,431,785 65,575 36,589 115,838 16,729 491,576 88,217,832 3,262,864 220,891 1,393,43118

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009stSchedules forming part of financial statements for the ended 31 March 2009Schedule - 2 : CommissionsParticulars Current Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityCommission PaidDirect - First year premium 8,298,587 379,703 208 16,343 45,308 - 196,043 7,472,893 188,089 - -- Renewal Premium 2,200,641 162,812 1,126 1,020 1,173 - - 2,006,124 28,386 - -- Single Premium 55,548 702 - 734 443 177 - 45,803 7,689 - -Add: Commission on ReinsuranceAccepted - - - - - - - - - - -Less: Commission on ReinsuranceCeded (39,283) (4,582) (62) (786) (4,661) - (137) (29,031) (24) - -(Refer Schedule 16 Note 16)Net Commission 10,515,493 538,635 1,272 17,311 42,263 177 195,906 9,495,789 224,140 - -Breakup of commission expenses ( Gross) incurred to procure business is furnished below (*)Agents 4,676,728Brokers 45,348Corporate Agency 4,765,200Referral 1,067,500Total 10,554,776Note : Commission on First Year premium includes referral fees amounting to Rs. 1,067,500 (Previous year Rs. 912,366)* Information across line of business has not been disclosed as information is not readily available.Particulars Previous Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityCommission PaidDirect - First year premium 13,719,996 151,758 175 2,234 29,870 - 13,431 13,379,701 142,827 - -- Renewal Premium 1,179,721 146,559 1,107 531 186 - - 1,014,481 16,857 - --Single Premium 88,925 - - - - 160 - 85,386 3,379 - -Add: Commission on ReinsuranceAccepted - - - - - - - - - - -Less: Commission on ReinsuranceCeded (20,020) (726) (2) (245) (4,244) - - (14,803) - - -(Refer Schedule 16 Note 16)Net Commission 14,968,622 297,591 1,280 2,520 25,812 160 13,431 14,464,765 163,063 - -Breakup of commission expenses ( Gross) incurred to procure business is furnished below (*)Agents 7,108,957Brokers 33,228Corporate Agency 6,934,091Referral 912,366Total 14,988,642Note : Commission on First Year premium includes referral fees amounting to Rs. 912,366 (Previous year Rs. 622,502)* Information across line of business has not been disclosed as information is not readily available.19

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 3 : Operating Expenses Related To Insurance Business(Refer Schedule 16 Note 10)Particulars Current Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityEmployees' remuneration, welfarebenefits and other manpowercosts (*) 7,684,408 271,107 2,661 7,542 7,887 257 45,700 7,056,125 282,890 963 9,276Travel, conveyance and vehiclerunning expenses 260,635 9,195 90 256 268 9 1,550 239,324 9,595 33 315Training expenses 350,199 12,355 121 344 359 12 2,083 321,566 12,892 44 423Rents, rates and taxes- Service tax borne by Unit linkedpolicy holders' 1,517,770 - - - - - - 1,504,229 12,495 143 903- Service Tax unutilised creditsprovision/(write back) (1,429,809) (50,444) (495) (1,403) (1,468) (48) (8,503) (1,312,907) (52,636) (179) (1,726)- Service Tax Expenses 1,488,181 71,770 704 1,997 2,088 68 12,098 1,324,051 72,694 255 2,456- Rents & Rates 458,897 16,190 159 450 471 15 2,729 421,378 16,894 57 554Repairs 107,098 3,778 37 105 110 4 637 98,342 3,943 13 129Printing and stationery 240,168 8,473 83 236 247 8 1,428 220,532 8,841 30 290Communication expenses 2,148,093 75,785 744 2,108 2,205 72 12,775 1,972,463 79,079 269 2,593Legal and professional charges 55,826 1,385 14 39 16,613 1 233 36,044 1,445 5 47Medical fees 49,946 1,762 17 49 51 2 297 45,863 1,839 6 60Auditors' fees, expenses, etc.a) as auditor 4,500 158 2 4 5 - 27 4,132 166 1 5b) as adviser or in any othercapacity, in respect ofi) Taxation Matters - - - - - - - - - - -ii) Insurance Matters - - - - - - - - - - -iii)Management Services; and - - - - - - - - - - -c) in any other capacity 300 12 - - - - 2 275 11 - -d) out of pocket expenses 480 17 - - - - 3 441 18 - 1Advertisement and publicity 647,778 22,853 224 636 665 22 3,852 594,816 23,847 82 781Interest and bank charges 219,123 7,731 76 215 225 7 1,303 201,208 8,067 27 264Othersa) Information technologyexpenses 557,559 19,671 193 547 572 19 3,316 511,972 20,526 70 673b) Insurance, water andelectricity charges 239,675 8,456 83 235 246 8 1,425 220,080 8,823 30 289c) Policy stamps 154,509 5,451 53 152 159 5 919 141,876 5,688 19 187d) Security and housekeeping 220,880 7,793 76 217 227 7 1,314 202,820 8,131 28 267e) Marketing expenses andBusiness development expenses 3,059,177 110,246 962 4,009 16,290 132 15,536 2,804,250 104,280 322 3,150f) Miscellaneous expenses 269,884 8,477 72 232 252 15 1,419 248,181 10,909 35 292Depreciation (Refer Schedule 10) 452,638 15,969 157 444 465 15 2,692 415,630 16,663 58 545Total 18,757,915 628,190 6,033 18,414 47,937 630 102,835 17,272,691 657,100 2,311 21,774* includes outsourced personal cost of Rs. 5,52,248/-20

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009 Annual Report 2008-2009Schedule - 3 : Operating Expenses Related To Insurance Business(Refer Schedule 16 Note 10)Particulars Previous Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityEmployees' remuneration, welfarebenefits and other manpowercosts (*) 6,898,081 227,776 3,295 2,798 4,323 156 4,586 6,433,344 206,177 2,061 13,565Travel, conveyance and vehiclerunning expenses 421,873 13,930 201 171 264 10 280 393,452 12,609 126 830Training expenses 511,314 16,884 244 207 320 12 340 476,866 15,283 153 1,005Rents, rates and taxes- Service tax borne by Unit linkedpolicy holders' - - - - - - - - - - -- Service Tax unutilised creditsprovision/(write back) 1,905,454 62,925 903 774 1,204 51 1,255 1,777,088 56,949 569 3,736- Service Tax Expenses 4,052 134 2 2 2 - 3 3,779 121 1 8- Rents & Rates 332,482 10,972 166 133 199 - 233 310,073 9,941 100 665Repairs 132,613 4,379 63 54 83 3 88 123,678 3,964 40 261Printing and stationery 345,943 11,423 165 140 217 8 230 322,637 10,340 103 680Communication expenses 3,872,974 127,880 1,857 1,569 2,418 80 2,587 3,612,035 115,763 1,157 7,628Legal and professional charges 38,977 975 14 12 9,473 1 20 27,533 882 9 58Medical fees 73,850 2,439 35 30 46 2 49 68,875 2,207 22 145Auditors' fees, expenses,etc.a) as auditor 2,500 81 1 1 2 - 2 2,332 75 1 5b) as adviser or in any othercapacity, in respect ofi) Taxation Matters - - - - - - - - - - -ii) Insurance Matters - - - - - - - - - - -iii) Management Services; and - - - - - - - - - - -c) in any other capacity - - - - - - - - - - -d) out of pocket expenses 105 5 - - - - - 97 3 - -Advertisement and publicity 368,309 12,162 176 149 231 8 245 343,496 11,008 110 724Interest and bank charges 199,879 6,600 95 81 125 5 133 186,413 5,974 60 393Othersa) Information technologyexpenses 532,772 17,592 254 216 334 12 354 496,879 15,924 159 1,048b) Insurance, water andelectricity charges 161,336 5,327 77 65 101 4 107 150,468 4,822 48 317c) Policy stamps 146,830 4,848 70 60 92 3 98 136,937 4,389 44 289d) Security and housekeeping 148,006 4,887 71 60 93 3 98 138,035 4,424 44 291e) Marketing expenses andBusiness development expenses 3,298,178 108,896 1,587 1,335 2,053 63 2,212 3,075,957 98,585 986 6,504f) Miscellaneous expenses 421,382 13,404 175 169 277 29 239 393,521 12,665 121 782Depreciation (Refer Schedule 10) 226,450 7,477 108 92 142 5 151 211,194 6,768 68 445Total 20,043,360 660,996 9,559 8,118 21,999 455 13,310 18,684,689 598,873 5,982 39,379* includes outsourced personal cost of Rs. 5,56,534/-21

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 4 : Benefits paid (net)Particulars Current Year Participating Non Participating Linked(Amount in Rs. '000)Insurance Claims :Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation Gratuitya) Claims by Death 2,272,059 98,941 1,476 14,115 16,288 687 472,657 1,646,438 21,457 - -b) Claims by Maturity 387,301 374,275 11,012 2,014 - - - - - - -c) Annuities/Pensions payment 4,747 - - - - 4,747 - - - - -d) UL Withdrawals/Surrenders &Other Benefits 4,992,212 68,006 4,032 3,157 16,353 4 - 3,954,914 140,372 81,440 723,934(Amount ceded in reinsurance):a) Claims by Death (72,535) (12,077) (144) (175) (7,854) - (1,500) (50,785) - - -b) Claims by Maturity - - - - - - - - - - -c) Annuities/Pensions payment - - - - - - - - - - -d) UL Withdrawals/Surrenders &Other Benefits (18,650) (10,311) (115) - (8,224) - - - - - -Amount accepted in reinsurancea) Claims by Death - - - - - - - - - - -b) Claims by Maturity - - - - - - - - - - -c) Annuities/Pensions payment - - - - - - - - - - -d) UL Withdrawals/Surrenders &Other Benefits - - - - - - - - - - -Total 7,565,134 518,834 16,261 19,111 16,563 5,438 471,157 5,550,567 161,829 81,440 723,934Benefits paid to claimants:In India 7,565,134 518,834 16,261 19,111 16,563 5,438 471,157 5,550,567 161,829 81,440 723,934Outside India - - - - - - - - - - -Total 7,565,134 518,834 16,261 19,111 16,563 5,438 471,157 5,550,567 161,829 81,440 723,934Particulars Previous Year Participating Non Participating LinkedInsurance Claims :Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation Gratuitya) Claims by Death 1,333,944 85,118 1,161 17,466 5,056 1,511 391,349 804,955 27,328 - -b) Claims by Maturity 217,039 215,720 - 1,316 - 3 - - - - -c) Annuities/Pensions payment 2,954 - - - - 2,954 - - - - -d) UL Withdrawals/Surrenders &Other Benefits 6,997,173 41,012 1,624 588 5,633 - - 6,463,154 437,986 2,766 44,410(Amount ceded in reinsurance):a) Claims by Death (32,441) (19,514) (527) (300) (2,463) - (919) (8,718) - - -b) Claims by Maturity - - - - - - - - - - -c) Annuities/Pensions payment - - - - - - - - - - -d) UL Withdrawals/Surrenders &Other Benefits (4,664) (3,682) - - (981) - - (1) - - -Amount accepted in reinsurancea) Claims by Death - - - - - - - - - - -b) Claims by Maturity - - - - - - - - - - -c) Annuities/Pensions payment - - - - - - - - - - -d) UL Withdrawals/Surrenders &Other Benefits - - - - - - - - - - -Total 8,514,005 318,654 2,258 19,070 7,245 4,468 390,430 7,259,390 465,314 2,766 44,410Benefits paid to claimants:In India 8,514,005 318,654 2,258 19,070 7,245 4,468 390,430 7,259,390 465,314 2,766 44,410Outside India - - - - - - - - - - -Total 8,514,005 318,654 2,258 19,070 7,245 4,468 390,430 7,259,390 465,314 2,766 44,41022

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 5 :Share Capital(Amount in Rs. '000)Particulars Current Year Previous YearAuthorised Capital200,000,000 Equity Shares of Rs. 10/- Each 2,000,000 2,000,000Issued , Subscribed, Called and Paid up CapitalEquity Shares of Rs. 10/- Each150,709,000 (Previous Year 150,709,000) Equity Shares of Rs.10/- Each1,507,090 1,507,090Less : Preliminary Expenses (to the extent not written off) - -Total 1,507,090 1,507,090Schedule - 5A :Pattern of Shareholding (As Certified by Management)(Amount in Rs. '000)ShareholderCurrent YearPrevious YearNumber of % of Number of % ofShares Holding Shares HoldingPROMOTERS:IndianBajaj Auto Limited - - 111,358,900 73.89Bajaj Finserv Limited 111,524,660 74 165,760 0.11ForeignAllianz SE 39,184,340 26 39,184,340 26TOTAL 150,709,000 100 150,709,000 100Note : Share certificates in respect of 111,358,900 shares allotted to the erstwhile Bajaj Auto Limited were transferred to Bajaj FinservLimited on 23rd May 2008 under a scheme of arrangement approved by the High Court of the Judicature at Mumbai and by theInsurance Regulatory and Development Authority (IRDA).23

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 6 :Reserves and Surplus(Amount in Rs. '000)Particulars Current Year Current Year Previous Year Previous YearCapital Reserve - -Capital Redemption Reserve - -Share PremiumOpening balance 10,599,550 5,501,600Add: Share Premium received during the year - 10,599,550 5,097,950 10,599,550Revaluation Reseve - -General Reserve - -Catastrophe Reserve - -Other Reserve - -Balance of Profit & Loss Account - -Total 10,599,550 10,599,550Schedule - 7 :Borrowings(Amount in Rs. '000)Particulars Current Year Previous YearDebentures/Bonds - -Banks - -Financial Institutions - -Others - -TOTAL - -24

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 8 :Investments - Shareholders'(Amount in Rs. '000)Particulars Current Year Previous YearLONG TERM INVESTMENTSGovernment securities and Government 2,600,831 4,549,343guaranteed bonds including Treasury Bills(Refer Note 1 below)Other Approved Securitiesa) Sharesaa) Equity - -bb) Preference - -b) Mutual Funds - -c) Derivative Instruments - -d) Debentures / Bonds 925,800 1,123,342e) Other Securitiesaa) Fixed Deposit with banks 318,900 -f) Subsidiaries - -Investment Properties - Real Estate - -Investments in Infrastructure and Social Sector Bonds 1,239,767 1,505,834Other investments 50,000 100,000SHORT TERM INVESTMENTSGovernment securities and Government 50,049 283,509guaranteed bonds including Treasury BillsOther Approved Securitiesa) Sharesaa) Equity - -bb) Preference - -b) Mutual Funds - -c) Derivative Instruments - -d) Debentures / Bonds 1,850,234 2,024,033e) Other Securitiesaa) Fixed Deposit with banks 100,000 1,079,900f) Subsidiaries - -Investment Properties - Real Estate - -Investments in Infrastructure and Social Sector Bonds 559,633 346,395Other investmentsaa) Bonds - 54,397bb) Mutual Funds - 392,102Total 7,695,214 11,458,855INVESTMENTSIn India 7,695,214 11,458,855Outside India - -Total 7,695,214 11,458,855Notes :1. Includes Rs. 157,300 (Previous Year Rs. 103,333 ) deposited with Deutsche Bank AG, pursuant to Section 7 of the Insurance Act1938 (Refer Schedule 16 Note 6 )2. Market Value of the above total investments of Rs. 7,695,214 (Previous Year Rs. 11,458,855) is Rs. 7,812,635 (Previous Year Rs.11,367,648 )3. Historical cost of investment valued on fair value basis is Rs. Nil (Previous Year Rs. 392,000)25

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 8A : Investments - Policyholders'Particulars Current Year Participating Non Participating Linked(Amount in Rs. '000)LONG TERM INVESTMENTSSHORT TERM INVESTMENTSIndividual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityGovernment securities and 14,423,229 9,115,686 234,081 197,634 62,725 92,139 368,055 4,285,238 61,821 1,739 4,111Government guaranteed bondsincluding Treasury BillsOther Approved Securitiesa) Sharesaa) Equity 47,601 47,601 - - - - - - - - -bb) Preference - - - - - - - - - - -b) Mutual funds - - - - - - - - - - -c) Derivative Instruments - - - - - - - - - - -d) Debentures / Bonds 2,459,826 1,251,272 10,000 766 - 745 268,439 850,061 72,343 200 6,000e) Other Securitiesaa) Fixed Deposits with Banks 802,500 - - - - - 49,900 554,100 190,000 - 8,500f) Subsidiaries - - - - - - - - - - -g) Investment Properties -Real Estate - - - - - - - - - - -Investments in Infrastructure &Social Sector Bonds 2,918,821 1,667,852 110,467 38,107 82,403 11,727 157,203 850,562 - 500 -Other investments- Bonds - - - - - - - - - - -- Equity - - - - - - - - - - -Government securities and 234,780 12,151 - 2,465 1,477 - 71,397 147,290 - - -Government guaranteed bondsincluding Treasury BillsOther Approved Securitiesa) Sharesaa) Equity - - - - - - - - - - -bb) Preference - - - - - - - - - - -b) Mutual Funds - - - - - - - - - - -c) Derivative Instruments - - - - - - - - - - -d) Debentures / Bonds 1,374,532 - - - 23,864 - 273,763 1,076,905 - - -e) Other Securities 250,000 - - - - - - 250,000 - - -f) Subsidiaries - - - - - - - - - - -g) Investment Properties -Real Estate - - - - - - - - - - -Investments in Infrastructure &Social Sector Bonds 705,859 149,941 - - 30,868 - 52,089 459,456 13,505 - -Other investments - - - - - - - - - - -TOTAL 23,217,148 12,244,503 354,548 238,972 201,337 104,611 1,240,846 8,473,612 337,669 2,439 18,611In India 23,217,148 12,244,503 354,548 238,972 201,337 104,611 1,240,846 8,473,612 337,669 2,439 18,611Outside India - - - - - - - - - - -Total 23,217,148 12,244,503 354,548 238,972 201,337 104,611 1,240,846 8,473,612 337,669 2,439 18,611Note: 1. Market Value of the above total investments of Rs. 23,217,148 (Previous year Rs. 14,686,968) is Rs. 24,022,333 (Previous year Rs. 14,500,505)2. Historical cost of investment valued on fair value basis is Rs 40,587 (Previous year Rs.629,918)26

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 8A : Investments - Policyholders'Particulars Previous Year Participating Non Participating Linked(Amount in Rs. '000)Individual Individual Individual Individual Individual Group Individual Individual Group Super- GroupAssurance Pension Assurance Health Annuity Assurance Assurance Pension annuation GratuityLONG TERM INVESTMENTSGovernment securities and 8,591,975 5,189,707 201,241 166,798 19,511 54,120 142,141 2,742,281 70,066 1,731 4,379Government guaranteed bondsincluding Treasury BillsOther Approved Securitiesa) Sharesaa) Equity 612,830 612,830 - - - - - - - - -bb) Preference - - - - - - - - - - -b) Mutual funds - - - - - - - - - - -c) Derivative Instruments - - - - - - - - - - -d) Debentures / Bonds 1,987,142 1,252,312 10,000 772 - 745 61,440 656,873 5,000 - -e) Other Securitiesaa) Fixed Deposits with Banks - - - - - - - - - - -f) Subsidiaries - - - - - - - - - - -g) Investment Properties -Real Estate 244,943 244,943 - - - - - - - - -Investments in Infrastructure &Social Sector Bonds 2,133,134 1,237,579 76,574 38,102 45,000 11,721 32,916 691,242 - - -Other investments- Bonds 100,000 100,000 - - - - - - - - -- Equity 116,548 116,548 - - - - - - - - -SHORT TERM INVESTMENTSGovernment securities and 539,523 43,947 - - - - 49,651 445,511 - 313 101Government guaranteed bondsincluding Treasury BillsOther Approved Securitiesa) Sharesaa) Equity - - - - - - - - - - -bb) Preference - - - - - - - - - - -b) Mutual Funds - - - - - - - - - - -c) Derivative Instruments - - - - - - - - - - -d) Debentures / Bonds 100,344 50,344 - - - - - 50,000 - - -e) Other Securities 50,000 - - - - - - 50,000 - - -f) Subsidiaries - - - - - - - - - - -g) Investment Properties -Real Estate - - - - - - - - - - -Investments in Infrastructure &Social Sector Bonds 210,529 126,169 - - - - 28,692 55,068 - 200 400Other investments - - - - - - - - - - -TOTAL 14,686,968 8,974,379 287,815 205,672 64,511 66,586 314,840 4,690,975 75,066 2,244 4,880In India 14,686,968 8,974,379 287,815 205,672 64,511 66,586 314,840 4,690,975 75,066 2,244 4,880Outside India - - - - - - - - - - -Total 14,686,968 8,974,379 287,815 205,672 64,511 66,586 314,840 4,690,975 75,066 2,244 4,880Notes:1. Market Value of the above total investments of Rs. 14,686,968 (Previous year Rs. 9,050,758) is Rs. 14,500,505 (Previous year Rs. 8,751,312).2. Historical cost of investment valued on fair value basis is Rs 629,918 (Previous year Rs. 582,404).27

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 8B :Assets held to cover linked liabilities(Amount in Rs. '000)Particulars Current Year Previous YearLONG TERM INVESTMENTSGovernment securities and Government 1,149,907 685,714guaranteed bonds including Treasury BillsOther Approved Securitiesa) Sharesaa) Equity 84,253,598 68,712,146bb) Preference 308,280 -b) Mutual Funds - -c) Derivative Instruments - -d) Debentures / Bonds 3,390,388 2,267,232e) Other Securities - -aa) Fixed Deposits with Banks 2,046,000 -f) Subsidiaries - -Investment Properties - Real Estate - -Investments in Housing and Infrastructure Sector 8,574,100 4,254,556Other investments 15,840,217 12,464,060Net Current Assets - -SHORT TERM INVESTMENTSGovernment securities and Government 337,067 220,783guaranteed bonds including Treasury BillsOther Approved Securitiesa) Sharesaa) Equity - -bb) Preference - -b) Mutual Funds 946,100 -c) Derivative Instrument - -d) Debentures / Bonds 16,014,164 11,142,937e) Other Securities - -f) Subsidiaries - -Investment Properties - Real Estate - -Investments in Housing and Infrastructure Sector 598,173 126,869Other investments - 1,091,843Fixed Deposits with Banks 1,949,028 1,699,800Net Current Assets 5,245,976 6,875,757INVESTMENTSTotal 140,652,998 109,541,697In India 140,652,998 109,541,697Outside India - -Total 140,652,998 109,541,697(Refer Schedule 16 Note 24)Historical Cost of above investments is Rs 159,828,323/- ( Previous Year Rs. 109,527,505/-)28

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 9 :Loans(Amount in Rs. '000)Particulars Current Year Previous YearSECURITY-WISE CLASSIFICATIONSecureda) On mortgage of propertyaa) In India - -bb) Outside India - -b) On Shares, Bonds, Government Securities etc. - -c) Loan against policies 76,970 30,937Total 76,970 30,937BORROWER-WISE CLASSIFICATIONa) Central and State Government - -b) Bank and Financial Institutions - -c) Subsidiaries - -d) Companies - -e) Loan against policies 76,970 30,937Total 76,970 30,937PERFORMANCE-WISE CLASSIFICATIONa) Loans classified as standard :aa) In India 76,970 30,937bb) Outside India - -Total 76,970 30,937MATURITY-WISE CLASSIFICATIONa) Short-Term - -b) Long-Term 76,970 30,937Total 76,970 30,93729

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 10 : Fixed Assets(Amount in Rs. '000)GROSS BLOCK DEPRECIATION NET BLOCKParticulars Opening Additions Deductions Closing Upto last For the On Sales/ To date Current Previousyear year Adjustments Year YearIntangible -Computer Software 66,353 - - 66,353 37,269 13,824 - 51,093 15,260 29,084Land-Freehold - - - - - - - - - -Leasehold Properties 322,122 146,147 - 468,269 177,215 92,329 - 269,544 198,725 144,907Buildings (Refer note 2 below) 186,602 244,943 - 431,545 16,257 8,631 - 24,888 406,657 170,345Electrical Fittings 4,722 104 - 4,826 1,852 270 - 2,122 2,704 2,870Furniture & Fittings 82,339 40,606 34 122,911 36,343 7,361 29 43,675 79,236 45,996Information Technology Equipment 764,177 263,586 4,783 1,022,980 368,126 292,486 2,888 657,724 365,256 396,051Air Conditioner 87,912 30,661 59 118,514 25,514 12,400 59 37,855 80,659 62,398Vehicles 12,980 2,312 1,077 14,215 3,186 2,770 967 4,989 9,226 9,794Office Equipment 117,060 36,255 527 152,788 68,883 22,567 524 90,926 61,862 48,177Total 1,644,267 764,614 6,480 2,402,401 734,645 452,638 4,467 1,182,816 1,219,585 909,622Previous Year 1,043,272 603,061 2,066 1,644,267 510,127 226,450 1,932 734,645 909,622 -Note: 1. Refer Note No.1 (h) of Schedule 162. Addition of Rs. 244,943, represents Building transferred from Investments Policyholders' account.30

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 11 :Cash and Bank Balances(Amount in Rs. '000)Particulars Current Year Previous Year1. Cash (including cheques, drafts and stamps) (*) 442,494 744,1832. Bank Balancesa) Deposit Accountsaa) Short-term (due within 12 months of the date of Balance Sheet ) 200 200bb) Others - -b) Current Accounts 3,110,269 2,986,511c) Others - -3. Money at Call and Short Noticea) With Banks - -b) With Other Institutions - -4 . Others - -Total 3,552,963 3,730,894Balances with non-scheduled banks included in 2 and 3 aboveCash and Bank Balances1. In India 3,552,963 3,730,8942. Outside India - -Total 3,552,963 3,730,894(*) includes credit card collections31

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedule - 12 :Advances and Other Assets(Amount in Rs. '000)Particulars Current Year Previous YearADVANCESReserve deposits with ceding companies - -Application money for investments - -Prepayments 132,292 129,358Advances to Directors/Officers - -Advance Tax paid and taxes deducted at source 6,774 1,066Others :Travel Advances 500 1,768Employee Advances 2,977 4,108Advances to Suppliers 308,105 129,756Miscellaneous Advances - -Total (A) 450,648 266,056OTHER ASSETSIncome accrued on investments 697,418 550,108Outstanding Premiums 268,465 233,726Agents' Balances - -Foreign Agencies Balance - -Due from other entities carrying on insurance business 21,567 3,779(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 207,009 169,540Others :Unsettled Investment contract receivable - -Others 183,316 144,697Total (B) 1,377,775 1,101,850Total (A + B) 1,828,423 1,367,90632

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedule - 13 :Current Liabilities(Amount in Rs. '000)Particulars Current Year Previous YearAgents' Balances 2,707,151 1,774,831Balances due to other insurance companies 70,312 18,869Deposits held on reinsurance ceded - -Premium received in advance 211,051 170,855Premium & Other Deposits 903,774 1,739,853Sundry Creditors (*) 3,110,997 5,910,554Due to Subsidiaries/holding company - 1,211Claims Outstanding 253,700 218,655Annuities Due - -Due to Officers/Directors of the Company - -Others :Payable - unsettled investment contracts - -Temporary Overdraft as per the books of accounts 795,371 409,891TOTAL 8,052,356 10,244,719(*) The Company is in the process of compiling the requisite list of micro and small enterprises under the MSMED Act which hascome into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have notbeen given.Schedule - 14 : Provisions(Amount in Rs. '000)Particulars Current Year Current Year Previous Year Previous YearFor Taxation (Less Payments and Taxes deducted at Sources)Wealth Tax 85 80Income Tax 71,283 -Fringe Benefit Tax 5,200 76,568 4,310 4,390For Proposed dividends - -For dividend distribution tax - -Others:For Leave Encashment 263,775 214,100For Long Term Incentive Plan 38,710 56,974For Gratuity 54,456 356,941 - 271,074Total 433,509 275,464Schedule - 15 : Miscellaneous Expenditure (To the extent not written-off or adjusted)(Amount in Rs. '000)Particulars Current Year Previous YearDiscount allowed on issue of shares/debentures - -Others - -Total - -33

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Annexure to Revenue Account-Break Up of Unit Linked Business (UL) for the year ended 31st March 2009stRevenue Account for the year ended 31 March 2009Policyholders' Account (Technical Account)Particulars Schedule Linked LifePREMIUMS EARNED – NET(a) Premium 17,911,923 77,005,250 94,917,173(b) Reinsurance ceded (Refer Schedule 16 Note 16) (122,465) - (122,465)INCOME FROM INVESTMENTS(a) Interest, dividend & rent - gross 617,168 2,296,436 2,913,604(b) Profit on sale/redemption of investments 27,748 4,129,721 4,157,469(c) Loss on sale/redemption of investments (167) (20,385,985) (20,386,152)(d) Unrealised gain/(loss) - (18,420,903) (18,420,903)(e) Other investment income - 991,625 991,625OTHER INCOME:(a) Linked income UL1 10,506,735 (10,506,735) -(b) Contribution from Shareholders' account 1,290,084 - 1,290,084(Refer Schedule 16 Note 15)(c) Others 83,418 - 83,418BENEFITS PAID (NET)UL2 1,165,453 4,385,114 5,550,567Interim Bonus Paid - - -Change In Valuation of Liability In Respect Of Life Policies 2,773,075 - 2,773,075(Refer Schedule 16 Note 1(e) and note 8)Change In Valuation Liability - 29,220,066 29,220,066(Refer Schedule 16 Note 1(e) and note 8)Surplus / (Deficit) (D) =(A)-(B)-(C)Non-Unit Unit Total(1) (2) (3)=(1) + (2)SUB-TOTAL 17,789,458 77,005,250 94,794,708644,749 (31,389,106) (30,744,357)Total (A) 30,314,444 35,109,409 65,423,853COMMISSIONOPERATING EXPENSES RELATED TO INSURANCE BUSINESS9,495,78915,768,462-1,504,2299,495,78917,272,691Provision for Fringe Benefit Tax 79,386 - 79,386Provision for Income Tax 41,444 - 41,444TOTAL (B) 25,385,081 1,504,229 26,889,310TOTAL (C) 3,938,528 33,605,180 37,543,708990,835 - 990,835Balance of previous year (E) - - -APPROPRIATIONSReserve for lapsed unit linked policies unlikely to be revived (E) 990,835 - 990,835(Refer Schedule 16 Note 1(e) and note 8)Transfer To Shareholders' a/c - - -Balance being funds for future appropriations (D) - (E) - - -34

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009(Amount in Rs. '000)Linked Pension Linked Group Current YearNon-Unit Unit Total Non-Unit Unit Total(4) (5) (6)=(4) + (5) (7) (8) (9)= (7) + (8) (10)=(3)+ (6)+(9)457,015 3,077,234 3,534,249 6,278 1,406,332 1,412,610 99,864,032(112) - (112) - - - (122,577)456,903 3,077,234 3,534,137 6,278 1,406,332 1,412,610 99,741,45515,492 106,584 122,076 1,404 142,085 143,489 3,179,169173 221,631 221,804 96 95,592 95,688 4,474,961- (1,062,260) (1,062,260) (3) (224,996) (224,999) (21,673,411)- (820,989) (820,989) - 52,375 52,375 (19,189,517)- 43,591 43,591 - 24,711 24,711 1,059,92715,665 (1,511,443) (1,495,778) 1,497 89,767 91,264 (32,148,871)167,560 (167,560) - 22,351 (22,351) - -348,191 - 348,191 806 - 806 1,639,0812,729 - 2,729 105 - 105 86,252991,048 1,398,231 2,389,279 31,037 1,473,748 1,504,785 69,317,917224,140 - 224,140 - - - 9,719,929644,605 12,495 657,100 23,039 1,046 24,085 17,953,8763,183 - 3,183 115 - 115 82,684- - - - - - 41,444871,928 12,495 884,423 23,154 1,046 24,200 27,797,933- 161,829 161,829 - 805,374 805,374 6,517,770- - - - - - -119,120 - 119,120 7,242 - 7,242 2,899,437- 1,223,907 1,223,907 - 667,328 667,328 31,111,301119,120 1,385,736 1,504,856 7,242 1,472,702 1,479,944 40,528,508- - - 641 - 641 991,476- - - - - - -- - - - - - 990,835- - - - - - -- - - 641 - 641 64135

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Annexure to Revenue Account-Break Up of Unit Linked Business (UL) for the year ended 31st March 2009stRevenue Account for the year ended 31 March 2009Policyholders' Account (Technical Account)Particulars Schedule Linked LifeNon-Unit Unit Total(1) (2) (3)=(1) + (2)PREMIUMS EARNED – NET(a) Premium 28,370,793 59,847,039 88,217,832(b) Reinsurance ceded (Refer Schedule 16 Note 16) (63,026) - (63,026)INCOME FROM INVESTMENTS(a) Interest, dividend & rent - gross 286,715 987,022 1,273,737(b) Profit on sale/redemption of investments 4,526 8,260,919 8,265,445(c) Loss on sale/redemption of investments (5,308) (1,435,912) (1,441,220)(d) Unrealised gain/(loss) - (2,661,741) (2,661,741)(e) Other investment income - 569,556 569,556OTHER INCOME:(a) Linked income UL1 5,350,476 (5,350,476) -(b) Contribution from Shareholders' account 2,539,007 - 2,539,007(Refer Schedule 16 Note 15)(c) Others 81,850 - 81,850COMMISSION14,464,765 - 14,464,765OPERATING EXPENSES RELATED TO INSURANCE BUSINESS18,684,689 - 18,684,689Provision For Taxation 87,025 - 87,025BENEFITS PAID (NET)UL2 529,409 6,729,981 7,259,390Interim Bonuses Paid - - -Change In Valuation of Liability In Respect Of Life Policies 1,137,626 - 1,137,626(Refer Schedule 16 Note 1 (e) and Note 8 )Change In Valuation Liability(Refer Schedule 16 Note 1 (e) and Note 8 ) - 53,486,426 53,486,426Surplus / (Deficit) (D) =(A)-(B)-(C)SUB-TOTAL 28,307,767 59,847,039 88,154,806285,933 5,719,844 6,005,777Total (A) 36,565,033 60,216,407 96,781,440TOTAL (B) 33,236,479 - 33,236,479TOTAL (C) 1,667,035 60,216,407 61,883,4421,661,519 - 1,661,519Balance of previous year - - -Transitional Adjustments on revision to Valuation of employees benefit (59,899) - (59,899)(Refer Schedule 16 Note 1)APPROPRIATIONSReserve for lapsed unit linked policies unlikely to be revived (1,601,620) - (1,601,620)(Refer Schedule 16 Note 1(e) and note 8)Transfer To Shareholders' a/c - - -Balance being funds for future appropriations - - -36

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009(Amount in Rs. '000)Linked Pension Linked Group Previous YearNon-Unit Unit Total Non-Unit Unit Total(4) (5) (6)=(4) + (5) (7) (8) (9)= (7) + (8) (10)=(3)+ (6)+(9)365,760 2,897,104 3,262,864 5,406 1,608,916 1,614,322 93,095,018(48) - (48) - - - (63,074)365,712 2,897,104 3,262,816 5,406 1,608,916 1,614,322 93,031,9443,920 43,929 47,849 300 40,769 41,069 1,362,65521 533,211 533,232 - 65,126 65,126 8,863,803- (79,330) (79,330) (9) (7,433) (7,442) (1,527,992)- (309,353) (309,353) - (37,347) (37,347) (3,008,441)- 27,662 27,662 - 6,277 6,277 603,4953,941 216,119 220,060 291 67,392 67,683 6,293,52082,377 (82,377) - 7,848 (7,848) - -365,506 - 365,506 36,057 - 36,057 2,940,5702,623 - 2,623 199 - 199 84,672820,159 3,030,846 3,851,005 49,801 1,668,460 1,718,261 102,350,706163,063 - 163,063 - - - 14,627,828598,873 - 598,873 45,361 - 45,361 19,328,9232,789 - 2,789 212 - 212 90,026764,725 - 764,725 45,573 - 45,573 34,046,777- 465,314 465,314 54 47,122 47,176 7,771,880- - - - - - -53,873 - 53,873 4,100 - 4,100 1,195,599- 2,565,532 2,565,532 - 1,621,338 1,621,338 57,673,29653,873 3,030,846 3,084,719 4,154 1,668,460 1,672,614 66,640,7751,561 - 1,561 74 - 74 1,663,154- - - - - - -(1,561) - (1,561) (74) - (74) (61,534)- - - - - - (1,601,620)- - - - - - -- - - - - - -37

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Annexure to Revenue Account-Break Up of Unit Linked Business (UL) for the year ended 31st March 2009Schedule - UL1 : Linked Income(recovered from linked funds) (net of service tax)(Amount in Rs. '000)Particulars Life Linked Pension Linked Linked Group CurrentUnit Unit Unit Year(1) (2) (3) (4)= (1)+(2)+(3)Fund Administration charges 190,419 - - 190,419Fund Management charges 1,531,339 68,913 22,351 1,622,603Policy Administration charges 4,898,781 86,174 - 4,984,955Surrender charges - - - -Switching charges 2,787 432 - 3,219Mortality charges 3,387,828 11,111 - 3,398,939Rider Premium charges 495,581 930 - 496,511Partial withdrawal charges - - - -Miscellaneous charges - - - -TOTAL (UL-1) 10,506,735 167,560 22,351 10,696,646Annexure to Revenue Account-Break Up of Unit Linked Business (UL) for the year ended 31st March 2009Schedule - UL1 : Linked Income(recovered from linked funds) (net of service tax)(Amount in Rs. '000)Particulars Life Linked Pension Linked Linked Group PreviousUnit Unit Unit Year(1) (2) (3) (4)= (1)+(2)+(3)Fund Administration charges 214,789 - - 214,789Fund Management charges 1,080,521 48,528 7,848 1,136,897Policy Administration charges 2,094,442 29,255 - 2,123,697Surrender charges - - - -Switching charges 8,063 597 - 8,660Mortality charges 1,632,240 3,401 - 1,635,641Rider Premium charges 320,421 596 - 321,017Partial withdrawal charges - - - -Miscellaneous charges - - - -TOTAL (UL-1) 5,350,476 82,377 7,848 5,440,70138

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009Annexure to Revenue Account-Break Up of Unit Linked Business (UL) for the year ended 31st March 2009Schedule - UL2 : Benefits Paid (net)(Amount in Rs. '000)Linked Life Linked Pension Linked Group Current YearSl. No. Particulars Non-Unit Unit Total Non-Unit Unit Total Non Unit Unit Total(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 1,216,238 430,200 1,646,438 - 21,457 21,457 - - - 1,667,895(b) Claims by Maturity - - - - - - - - - -(c) Annuities / Pension payment - - - - - - - - - -(d) Other benefits- Surrender - 3,954,914 3,954,914 - 140,372 140,372 - 805,374 805,374 4,900,660- Survival - - - - - - - - - -Sub Total (A) 1,216,238 4,385,114 5,601,352 - 161,829 161,829 - 805,374 805,374 6,568,5552 Amount Ceded in reinsurance(a) Claims by Death (50,785) - (50,785) - - - - - - (50,785)(b) Claims by Maturity - - - - - - - - - -(c) Annuities / Pension payment - - - - - - - - - -(d) Other benefits- Surrender - - - - - - - - - -- Survival - - - - - - - - - -Sub Total (B) (50,785) - (50,785) - - - - - - (50,785)TOTAL (A) - (B) 1,165,453 4,385,114 5,550,567 - 161,829 161,829 - 805,374 805,374 6,517,770Benefits paid to claimants:In India 1,165,453 4,385,114 5,550,567 - 161,829 161,829 - 805,374 805,374 6,517,770Outside India - - - - - - - - - -TOTAL (UL2) 1,165,453 4,385,114 5,550,567 - 161,829 161,829 - 805,374 805,374 6,517,770(Amount in Rs. '000)Linked Life Linked Pension Linked Group Previous YearSl. No. Particulars Non-Unit Unit Total Non-Unit Unit Total Non Unit Unit Total(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 538,128 266,827 804,955 - 27,328 27,328 - - - 832,283(b) Claims by Maturity - - - - - - - - - -(c) Annuities / Pension payment - - - - - - - - - -(d) Other benefits- Surrender - 6,463,154 6,463,154 - 437,986 437,986 54 47,122 47,176 6,948,316- Survival - - - - - - - - - -Sub Total (A) 538,128 6,729,981 7,268,109 - 465,314 465,314 54 47,122 47,176 7,780,5992 Amount Ceded in reinsurance(a) Claims by Death (8,718) - (8,718) - - - - - - (8,718)(b) Claims by Maturity - - - - - - - - - -(c) Annuities / Pension payment - - - - - - - - - -(d) Other benefits- Surrender (1) - (1) - - - - - - (1)- Survival - - - - - - - - - -Sub Total (B) (8,719) - (8,719) - - - - - - (8,719)TOTAL (A) - (B) 529,409 6,729,981 7,259,390 - 465,314 465,314 54 47,122 47,176 7,771,880Benefits paid to claimants:In India 529,409 6,729,981 7,259,390 - 465,314 465,314 54 47,122 47,176 7,771,880Outside India - - - - - - - - - -TOTAL (UL2) 529,409 6,729,981 7,259,390 - 465,314 465,314 54 47,122 47,176 7,771,88039

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)Schedule - 16 : Notes to financial statementsBackgroundBajaj Allianz Life Insurance Company Limited (“thethCompany”) was incorporated on 12 March 2001 as aCompany under the Companies Act, 1956. The Companyobtained a license from the Insurance Regulatory andDevelopment Authority (“IRDA”) for carrying on the businessrdof life insurance on 3 August 2001. The registrationcertificate granted by IRDA is valid and the same has beenrenewed for the year 2009- 2010. The Company has a widerange of products in traditional and unit-linked insurancebusiness.1. Significant Accounting Policies followed by theCompanyBasis of PreparationThe accompanying financial statements have been preparedand presented under the historical cost convention, on theaccrual basis of accounting, in compliance with theaccounting standards ('AS') issued by the Institute ofChartered Accountants of India ('ICAI'), to the extentapplicable, and in accordance with the provisions of theInsurance Act, 1938, the Insurance Regulatory andDevelopment Authority (Preparation of Financial Statementsand Auditor's Report of Insurance Companies) Regulations,2002 ('the Regulations'), Insurance Regulatory andDevelopment Authority Act, 1999, various circulars issued byIRDA and the Companies Act, 1956 to the extent applicableand the practices prevailing in the insurance industry in India.The accounting policies have been consistently applied by theCompany.Use of EstimatesThe preparation of financial statements in conformity withgenerally accepted accounting principles requiresmanagement to make estimates and assumptions that affectthe reported amounts of assets, liabilities, revenue andexpenses and disclosure of contingent liabilities as on the dateof financial statements. The estimates and assumptions usedin the accompanying financial statements are based uponmanagement's evaluation of the relevant facts andcircumstances as of the date of the financial statements.Actual results could differ from those estimates. Any revisionto accounting estimates is recognized prospectively incurrent and future periods.a) Revenue RecognitionRevenues are recognised as under. However recognition ispostponed where ultimate collectibility lacks reasonablecertainty.Premium IncomePremium is recognised as income when due. For linkedbusiness, premium is recognized when the associated unitsare allotted.Premium on lapsed policies is recognized as income whensuch policies are reinstated.In case of linked business, top up premiums paid bypolicyholders are unitized and considered as single premium.This premium is recognised when associated units areallotted.Commission received on reinsurance ceded is recognized asincome in the period in which reinsurance premium is ceded.Income earned on investmentsInterest income is recognised on an accrual basis.Dividend income is recognized when the right to receivedividend is established.Premium or discount on acquisition, as the case may be, inrespect of fixed income securities, pertaining to non-linkedinvestments is amortized on constant yield to maturity basisover the period of maturity/holding and offset againstinterest income.Profit/loss on sale/redemption of securities other than linkedinvestments is recognized on trade/redemption date andincludes effects of accumulated fair value changes, asapplicable and previously recognised, for specificinvestments sold/redeemed during the year. Cost of securityis determined on first in first out cost basis.The realized gains or losses on the debt securities for otherthan linked business is the difference between the net saleconsideration and the amortized cost in the books of theCompany as on date of sale.The realized gains or loss on equity shares and mutual fundunits for other than linked business is the difference betweenthe net sale consideration and the cost in the books of theCompany.The realized gain or loss on securities held for linked businessis the difference between the net sale consideration and theweighted average cost as on the date of sale.Fund Management Charges, Fund Administration Chargesand Cost of Insurance are accounted for on accrual basis inaccordance with terms and conditions described in the issuedpolicies.Rent income earned from real estate is recognized on anaccrual basis.b) Reinsurance premiumReinsurance premium ceded is accounted in accordance withthe treaty with reinsurers.c) Benefits Paid (Including Claims)Death and surrender claims are accounted for on receipt ofintimation. Maturity claims are accounted when due forpayment. Reinsurance recoveries are accounted for in thesame period as the related claims and netted off against theclaim expense incurred.Repudiated claims disputed before judicial authorities areprovided for based on the best judgment of the managementconsidering the facts and evidence in respect of each suchclaim.Withdrawals under unit linked policies are accounted inrespective schemes when the associated units are cancelled.d) Acquisition CostsAcquisition costs such as commission, policy issue expensesetc. are costs that vary with and are primarily relatable to the40

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009acquisition of new and renewal insurance contracts. Suchcosts are expensed in the year in which they are incurred.Accounting for additional first year commission is done on anaccrual basis, after considering estimated lapsations. Clawback in future, if any, for the first year commission paid, will beaccounted for in the year in which it is recovered.e) Liability for life policies(i) The Company provides for liabilities in respect of all “inforce” policies and “lapsed policies” that are likely to berevived in future, based on actuarial valuation done by theAppointed Actuary as per gross premium method inaccordance with accepted actuarial practices,requirements of IRDA and Actuarial Society of India.(ii) Liabilities in respect of unit linked policies which havelapsed and are not likely to be revived, are shown as aseparate item under the head “funds for futureappropriations”, until expiry of the revival period. This isas per IRDA Circular No. 041/IRDA/ACTL/MAR-2006thdated 29 March 2006.(iii) Linked liabilities comprise of unit liability representing thefund value of policies and non-unit liability for meetinginsurance claims etc. This is based on an actuarialvaluation carried out by the Appointed Actuary.Actuarial policies and assumptions are given in Note 8 below.f) InvestmentsInvestments are made in accordance with the Insurance Act,1938, the Insurance Regulatory and Development Authority(Investment) Regulations, 2000, as amended and circulars /notifications issued by IRDA from time to time.Investments are recorded on trade date at cost, whichincludes brokerage and related taxes, if any and excludes preacquisitioninterest, if any.i) Classificationii)Investments maturing within twelve months from theBalance Sheet date and investments made with thespecific intention to dispose of within twelve months fromBalance Sheet date are classified as short-term.Investments other than short term are classified as longterminvestments.Investments are specifically procured and held forpolicyholders and shareholders independently and theincome relating to these investments is recognized in theRevenue Account and Profit and Loss Accountrespectively.Valuation – Shareholders' investments and non-linkedpolicyholders' investmentsAll debt securities are considered as 'held to maturity' andaccordingly stated at historical cost adjusted foramortization of premium or accretion of discount onconstant yield to maturity basis over the period held tomaturity / sale.Listed equity shares and mutual fund units are stated atfair value, in accordance with IRDA Investment(Amendment) Regulations 2001. Fair value for listedequity shares is the lower of the last quoted closing priceon the National Stock Exchange (NSE) and The StockExchange, Mumbai (BSE). Fair value for mutual fund unitsis the net asset value on the Balance Sheet date.Unrealized gains/losses on changes in fair values of listedequity shares and mutual funds are taken to the Fair ValueChange Account and carried forward in the BalanceSheet.Investment in real estate properties is valued at cost,subject to revaluation once in three years.iii) Valuation – linked businessListed equity shares are valued at fair value, being the lastquoted closing price on the NSE. In case the equity sharesare not listed on the NSE, then they are valued on the lastquoted closing price on BSE.Government securities are valued at prices obtained fromCredit Rating Information Services of India Ltd. (CRISIL).Corporate bonds and debentures are valued on the basisof CRISIL Bond Valuer.Treasury bills, certificate of deposits and commercialpapers are valued at cost plus accretion at constant yieldto maturity.Mutual fund units have been valued at the last availableNet Asset Value declared by the respective mutual fund.iv) Transfer of investmentsTransfer of investments from Shareholders' Fund to thePolicyholders' Fund is at book value or market price;whichever is lower.Transfer of debt securities is at lower of amortised cost ormarket price.Inter fund transfer of Treasury Bills, Certificate of Depositsand Commercial Papers between unit linked funds is doneat cost plus accretion. All other transfer of investmentsbetween unit linked funds is done at market price.g) LoansLoans are stated at historical cost, subject to provision forimpairment, if any.h) Fixed Assets and DepreciationFixed assets are stated at cost of acquisition less accumulateddepreciation. Cost of acquisition includes incidental expensesrelating to acquisition and installation. In respect of liabilitiesincurred in acquisition of fixed assets in foreign exchange, thenet gain or loss arising on conversion/settlement is charged toRevenue Account.Intangible assets comprising software are stated at cost lessamortization.Depreciation / amortisation is provided on Straight LineMethod (SLM) with reference to the management'sassessment of the estimated useful life of the assets or therates specified by the Schedule XIV of the Companies Act,1956, whichever is higher.41

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)Schedule - 16 : Notes to financial statementsDepreciation / amortisation is provided at the following rates:Asset ClassRate ofDepreciation /amortisationRate ofDepreciationas per Sch.XIV (SLM)Intangibles -Computer Software 33.33% p.a. 16.21% p.a.Leasehold Improvements Over the Over thebalance balanceperiod of Lease period of LeaseBuildings 2.00% p.a. 1.63% p.a.Electrical Fittings 6.33% p.a. 4.75% p.a.Furniture & Fittings 6.33% p.a. 6.33% p.a.Information TechnologyEquipment 33.33% p.a. 16.21% p.a.Air Conditioner 10.00% p.a. 4.75% p.a.Vehicles 20.00% p.a. 7.07% p.a.Office Equipment 25.00% p.a. 4.75% p.a.The Company provides pro rata depreciation from the monthin which the asset is acquired / first put to use and upto themonth in which the asset is sold/discarded.Assets costing individually less than Rs 5,000 are charged offas revenue expenses. Assets costing Rs 5,000 and above,upto Rs 20,000, are fully depreciated in the year of acquisition.Impairment of AssetsThe Company assesses at each Balance Sheet date whetherthere is any indication that an asset may be impaired. If anysuch indication exists, the Company estimates therecoverable amount of the asset. An impairment loss isrecognized if such recoverable amount of the asset is less thanits carrying amount. After impairment, depreciation isprovided on the revised carrying amount of the assets over itsremaining useful life.i) Accounting for leasesOperating leasesLeases where the lessor effectively retains substantially all therisks and benefits of ownership over the leased term areclassified as operating leases. Operating lease rentals arerecognized as an expense in the profit and lossaccount/revenue account on a straight-line basis over thelease term.j) Employee Benefits:The Company makes contributions to the definedcontribution schemes such as Statutory Provident Fund,Employee Labour Welfare Fund, Employees' State InsuranceCorporation and Employee Deposit Link Insurance Scheme atthe prescribed rates. Contributions are charged to theRevenue Account of the year when the contributions to thefunds are due.The Company makes a contribution to the Bajaj AutoEmployee Superannuation Scheme, a defined contributionscheme, for its eligible employees at fixed rates.The Company's liability towards Gratuity, Leave Encashmentand Long Term Incentive Plan being defined benefit plans isaccounted for on the basis of independent actuarialvaluations carried out at the year end and actuarial gains /losses related there to are charged to the Revenue Account.The actuarial method used for measuring the aforesaidliabilities is 'Projected Unit Credit Method'.k) Transactions in Foreign CurrencyTransactions in foreign currency on account of revenueexpenditure are accounted for at the rate prevailing at thedate of the transactions. Current assets and liabilities aretranslated at the year-end closing rates. The resultingexchange gain or loss, if any, is reflected in the profit and lossaccount / revenue account.l) TaxationIncome Tax expense comprises current tax (i.e. amount of taxfor the period determined in accordance with the income-taxlaw including Fringe Benefit Tax) and deferred tax charge orcredit (reflecting the tax effects of timing differencesbetween the accounting income and taxable income for theperiod).Deferred tax is measured based on the tax rates and the taxlaws enacted or substantively enacted at the balance sheetdate. Deferred tax assets are recognised only to the extentthat there is reasonable certainty that sufficient future taxableincome will be available against which such deferred taxassets can be realised. In situations where the Company hasunabsorbed depreciation or carry forward tax losses, alldeferred tax assets are recognised only if there is virtualcertainty supported by convincing evidence that they can berealised against future taxable profits.At each balance sheet date the Company re-assessesunrecognised deferred tax assets. It recognises unrecogniseddeferred tax assets to the extent that it has becomereasonably certain or virtually certain, as the case may be thatsufficient future taxable income will be available againstwhich such deferred tax assets can be realised.m) Provisions and Contingent liabilitiesThe Company creates a provision when there is presentobligation as a result of a past event that probably requires anoutflow of resources and a reliable estimate can be made ofthe amount of the obligation. A disclosure for a contingentliability is made when there is a possible obligation or apresent obligation that may, but probably will not, require anoutflow of resources. When there is a possible obligation or apresent obligation in respect of which the likelihood ofoutflow of resources is remote, no provision or disclosure ismade.n) Service TaxService Tax liability on premium and charges are setoff againstavailable service tax credits from service tax payments madefor Insurance Auxiliary and other eligible services. Unutilisedcredits, if any, are carried forward under "Advances and otherAssets" for adjustments / setoff in subsequent periods, aftercreating a provision based on estimated realization of theunutilised credit. Such provisions are subsequently reversed42

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009only on virtual certainty that the credits will be utilized infuture periods.o) Earnings per shareBasic earnings per share is calculated by dividing the net profitor loss for the year attributed to equity shareholders by theweighted number of equity shares outstanding during theyear.For the purpose of calculating diluted earnings per share, thenet profit or loss for the year attributable to equityshareholders and the equity weighted number of sharesoutstanding during the year are adjusted for effects of alldilutive equity shares.p) Segment ReportingThe Company's reportable segments are business segmentswhich have been identified in accordance with theregulations. The operating expenses, investments and otherincome attributable to the business segments are allocated asmentioned in Note 10. Segment revenues and results havebeen disclosed in the Financial Statements itself. Segmentassets and liabilities have been identified to the extentpossible in the following table. There are no reportablegeographical segments since the company provides servicesto customers in the Indian market only and does notdistinguish any reportable regions within India.Statutory disclosures as required by the Regulations2. Contingent LiabilitiesParticulars(Rupees '000)As at 31st As at 31stMarch 2009 March 2008Partly-paid up investments Nil NilUnderwriting commitmentsoutstanding Nil NilClaims, other than thoseunder policies, notacknowledged as debts 1,606 1,070Guarantees given by oron behalf of the company Nil NilStatutory demands/liabilities in dispute, notprovided for * 7,064 7,064Reinsurance obligations tothe extent not provided forin accounts Nil NilClaims, under policies,not acknowledged as debts 61,143 70,728* The Service Tax department has issued an order on theCompany for Rs 7,064 thousand (excluding interest),pertaining to the period August 2002 to 31st December 2004.The Company has filed an appeal against the order with theCustoms, Excise and Service Tax Appellate Tribunal.3.There are no assets required to be deposited by theCompany under any local law or otherwise encumberedin or outside India except investments to be held under4.5.Section 7 of the Insurance Act, 1938 as discussed underNote 6. There are no assets subject to restructuring.There are no commitments made and outstanding forloans and investments. The commitments made andoutstanding for fixed assets amount to Rs.314,895thousand (Previous Year Rs. 342,754 thousand) (net ofadvances).Value of unsettled contracts relating to investments as at31st March 2009 for:Particulars(Rupees '000)LinkedBusinessNon-linkedBusinessst31 Marchst31 Marchst31 Marchst31 March2009 2008 2009 2008Purchases wheredeliveries are pending 2,745,424 1,120,876 NIL NILSales where receipts areoverdue 919,539 163,959 NIL NIL6. Investments as required to be maintained under Section 7of the Insurance Act, 1938 are as follows:Particulars(Rupees '000)st31 Marchst31 March2009 20087.55% Govt. of India - 50,724Securities 2010(Face Value Rs. 50,000)11.99% Govt. of India - 52,609Securities 2009(Face Value Rs. 50,000)8.32% Govt. of India 157,300 -Securities 2032*(Face Value Rs. 150,000)* This investment is in the custody of Deutsche Bank IndiaBranches in the Constituent Subsidiary General Ledger('CSGL') account.All investments are performing investments.7. Managerial remunerationThe details of the managerial remuneration included inemployee remuneration and welfare benefits are as follows:Particulars(Rupees '000)stst31 March 31 March2009 2008Salary 14,835 8,696Perquisites 793 618The managerial remuneration is in accordance with theapproval accorded by a resolution of the Board of Directorsand IRDA as required under Section 34A of the InsuranceAct,1938.Expenses towards gratuity and leave encashment aredetermined actuarially on an overall Company basis annuallyand accordingly have not been considered in aboveinformation43

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)Schedule - 16 : Notes to financial statements*Mr. Sam Ghosh (till 30th September 2007) and Mr. KameshstGoyal (w.e.f. 1 October 2007)8. Actuarial ValuationLiabilities for life insurance policies are determined by theAppointed Actuary in accordance with IRDA regulations andrelevant guidance notes of Institute of Actuaries of India.Non-linked business is reserved using a prospective grosspremium method of valuation. The non-linked business ispredominantly participating and reserves are establishedhaving regard to assumptions as to future experience,including the interest that will be earned on premiums not yetreceived, together with associated bonus rates. Regularpremium participating business is reserved using an interestrate of 7.20% per annum and the corresponding rate ofinterest used for last year valuation is 7.50%.Single premium participating business is reserved using a rateof 6.25% per annum which is same as used in valuation as at31st March 2008. The rate is determined after having regardto the yield being obtained on relevant matching assets.Assumptions as to future bonus rates are set to be consistentwith the interest rate assumptions. Provision has been madefor a bonus distribution in respect of business inforce at thevaluation date on a basis considered appropriate by theappointed actuary having taken into account the reasonableexpectations of policyholders.Linked business is reserved using the per unit net asset valueof units plus a non unit reserve to allow for costs of insuranceand any expenses and commissions in excess of futurecharges.Mortality assumptions are based on the published IALM(1994-1996) Ultimate Mortality Table with adjustment toreflect expected experience and with an allowance foradverse deviation.Assumptions for morbidity and for the incidence of accidentaldeath are based on terms available from reinsurers and thestandard morbidity rate table CIBT(94-96).The reserve is sufficient to allow for any adverse lapseexperience. The reserve has been always sufficient to meetminimum statutory surrender value.Commission has been allowed for at the Company's tablerates with an allowance for service tax. Maintenanceexpenses have been allowed for in accordance with businessplan assumptions and product filing with the IRDA. Anadditional reserve has been included to allow for possibleadverse deviations in experience in excess of offsettingadjustments in bonus rates and to allow for the contingency ofclosure to new business as is required by guidancenotes(GN1) issued by the Institute of Actuaries of India.There is a small amount of Group Term Business at thevaluation date, reserves for which have been calculatedhaving regard to the unearned gross premium and expensesalready incurred.Provision has been made for the possible revival of policies,which have lapsed before the valuation date, having regard tothe experience of the Company. As per IRDA circular No:041/IRDA/ACTL/MAR-2006 dated 29th March 2006, a reservefor lapsed unit linked policies not likely to be revived is held asa separate item under the head “Funds for FutureAppropriations”.The Appointed Actuary is satisfied that the nature and extentof reinsurance arrangements require no additional reserve tobe set aside. All reserves have been calculated using grossexposure and gross office premiums.The Appointed Actuary confirms, as is required by the IRDA,that the reserve is sufficient to provide for adverse “free look”experience based on assumptions and experience.9. ClaimsClaims settled and remaining unpaid for a period of more thansix months at year-end amount to Rs. Nil (Previous Year: RsNil.)10. Allocation of expensesOperating expenses relating to insurance business areallocated to specific business segments as under:(a) Expenses, which are directly identifiable, are allocated onan actual basis.(b) Other operating expenses, which are not directlyidentifiable are apportioned based on a combination of:• New Business Regular Premium;• New Business Single Premium; and• Renewal Premium11. Expenses directly attributable to shareholders arecharged to the Shareholders' Account.12. Accounting Standard AS15 (Revised) EmployeeBenefitsi. Defined Contribution PlansThe Company has recognized following amounts in theRevenue Account for the year –(Rs.'000)Sr. Particulars 31 March 31 MarchNo. 2009 20081. Contribution to EmployeesProvident Fund 205,199 184,2082. Contribution toSuperannuation Fund 2,201 1,9363. Contribution to LabourWelfare Fund, EDLI 3,772 3,3764. Contribution to ESIC 25,362 18,918ii.Defined Benefit Plans / Compensated absences – as perActuarial Valuation on March 31, 2009a) Reconciliation of opening and closing balances of thepresent value of the Defined Benefit Obligation (DBO):44

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Present value of Defined 88,594 64,026Benefit Obligation at thebeginning of the yearInterest cost 11,222 7,701Current service cost 60,006 39,200Actuarial Losses / ( Gains) (3,717) 14,045Benefits paid (47,227) (36,378)Present value of Defined 108,877 88,594Benefit Obligation at theclose of the yearb) A reconciliation of the opening and closing balances of thefair value of plan assets:(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Fair value of Plan Assets atthe beginning of the yearAdd :Expected return onPlan Assets88,5945,70137,4131,859Add / (Less) : Actuarial (700) 3,633Gains / (Losses)Add : Contributions 8,054 82,066Less: Benefits Paid (47,227) (36,377)Fair value of Plan Assets at 54,421 88,594the close of the yearActual Return on Plan Assets 5,001 5,492c) Net (Assets) /Liabilities recognized in the Balance Sheetas on March 31, 2009:(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Present value of DefinedBenefit obligationLess: Fair value of Plan Assets108,877(54,421)88,59488,594Present value of unfunded Nil NilobligationNet Liability / ( Asset) 54,456 Nilrecognized in theBalance sheetd) Total expenses recognized in the Revenue Account:(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Current Service Cost60,006 39,200Interest Cost 11,222 7,701Expected return on (5,701) (1,859)Plan AssetsActuarial Losses / ( Gains) (3,017) 10,412Past service costs Nil NilEffect of curtailment / Nil NilsettlementAdjustments for earlier years Nil NilRecognized in the 62,509 55,454Revenue AccountThe above have been included under the line item“Employees' remuneration, welfare benefits and othermanpower costs” in Schedule 3.e) Major categories of plan assets as a percentage of totalplan assets:(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Insurer Managed Funds 54,421 88,594f) Actuarial Assumptions:(Rs.'000)Particulars - Gratuity 31 March 2009 31 March 2008Discount Rate 7.11% 8.25%Expected rate of return on 7.50% 7.50%Plan AssetsSalary Escalation rate -- 6% 6%Management Staffg) Future salary increases considered in actuarial valuationtake into account inflation, seniority, promotion and otherrelevant factors, such as supply and demand in theemployment market.h) Expected rate of return on plan assets is on the basis ofaverage long term rate of return expected on investmentsof the fund during the estimated term of obligation.i) Para 132 of AS 15 does not require any specific disclosuresexcept where expense resulting from CompensatedAbsence is of such size, nature or incidence that itsdisclosure is relevant under Accounting Standard 5 orAccounting Standard 18. In the opinion of managementthe expense resulting from Compensated Absence is notsignificant and hence no disclosures are prepared undervarious paragraphs of AS15.13. Percentage of business sector-wiseParticulars Current YearPrevious YearNumber Percentage Number Percentageof Policies of policies of Policies of policiesRural 808,387 31.21% 961,196 25.67%Urban 1,781,556 68.79% 2,783,150 74.33%Current YearPrevious YearNo. of No of No. of No ofLives Policies Lives PoliciesSocial 6,145,044 20 1,608,948 2114. Percentage of risk retained and risks reinsured(Rs.'000)Particulars Current Year Previous YearSum at Percentage Sum at PercentageriskriskRisk retained 2,217,005,893 93.64% 1,107,972,936 91.03%Risk reinsured 150,656,502 6.36% 109,237,887 8.97%45

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)Schedule - 16 : Notes to financial statements15. During the year the shareholders transferred funds toPolicyholders' Account, to make good the deficit, whichexisted in the Policyholders' Account and transfer toreserve. The necessary approvals of the shareholders forthe said transfer have been taken at the Extra OrdinaryGeneral Meeting of the shareholders held on 11th May2009.16. Reinsurance is in place on lives where cover is in excess ofthe Company's retention limit and this has been reflectedin the Accounts.17. As per Accounting Standard 18 issued by the Institute ofChartered Accountants of India, disclosures oftransactions with the related parties have been set out in aseparate statement annexed to this schedule as AppendixI. The related parties, in respect of which the disclosureshave been made, have been identified on the basis ofdisclosures made by the key managerial persons andtaken on record by the Board of Directors.18. In accordance with Accounting Standard (AS 20) – onEarnings per Share (EPS), the following table reconcilesthe numerator and denominator used to calculatebasic/diluted earnings per share.Particulars31 March 31 March2009 2008Profit/(Loss) after tax (Rs.'000) (706,812) (2,138,905)Basic earnings before extra- (706,812) (2,138,905)ordinary items [A] (Rs.'000)Basic earnings after extra- (706,812) (2,138,905)ordinary items [B] (Rs. '000)Weighted average no. of 150,709,000 150,401,109equity shares (par value ofRs 10 each) [C]Basic earnings per equity (4.69) (14.22)share [A/C] (Rs)Basic earnings per equity share (4.69) (14.22)excluding extraordinary items[B/C] (Rs)As there were no dilutive equity shares issued, or potentialequity shares, no reconciliation between the denominatorused for computation of basic and diluted earnings per shareis necessary.19. Operating lease commitments(Rupees '000)Particulars31 March 31 March2009 2008Not later than one year 324,858 234,595Later than one year not laterthan five years 225,263 224,021Later than five years 7,085 25,209i) There are no transactions in the nature of sub leases.ii)The Company has entered into agreements in the natureof Lease/ Leave and Licence Agreements with differentlessors / licensors for the purpose of establishment ofoffice premises. These are generally in the nature ofoperating leases/ leave and licenses and disclosurerequired as per Accounting Standard 19 with regard tothe above is as under:Payments recognized in the Revenue account for the yearended 31st March 2009, are Rs 441,211 thousand(Previous Year Rs. 311,331 thousand).iii) The period of agreement is generally for three years andrenewable thereafter at the option of the lessee.46

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-200920. Previous year figures have been regrouped where possible and wherever necessary to make them comparable with those of thecurrent year. Summary of amounts of the previous year which have been regrouped is as follows:ParticularsReported in Previous year Difference From To Reasons AmountPrevious figures reported Schedule No. Schedule No.year in current yearProvisions forLong Term- 56,974 56,974 13 (CurrentLiabilities)14 (Provisions) To discloseemployee related56,974Incentive Plan provisions togetherSundry 5,964,059 5,910,554 (53,505) 13 (Current To disclose (56,974)Creditors Liabilities) 14 (Provisions) employee relatedprovisions together12 (Advances 13 (Current Grossing up 3,469and other Liabilities) of balancesAssets)under Deposit(53,505) (53,505)Deposits 254,686 169,540 (85,146) 12 (Advances 11 (Cash and Reclassification of 54,368and other Bank Balances) bank relatedAssets)balance fromDeposit to currentaccount12 (Advances 12 (Advances Reclassification of (142,983)and other and other others receivablesAssets) Assets) from Deposit toOther Assets12 (Advances 13(Current Grossing up of 3,469and other Liabilities) balances underAssets) Deposit(85,146) (85,146)Others 1,714 144,697 142,983 12 (Advances 12 (Advances Reclassification of 142,983and other and other others receivablesAssets) Assets) from Deposit toOther AssetsCash (including 798,551 744,183 (54,368) 12 (Advances 11(Cash and Reclassification of (54,368)cheques, drafts and other Bank Balances) balance fromand stamps) Assets) Deposit to Cash(including cheques,drafts and stamps)These re-groupings do not affect previously reported Surplus as per Revenue Account and Loss as per Profit and Loss Account.47

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)21 : Segment ReportingParticulars Current Year Participating Policyholders'Total Individual IndividualAssuarancePensionCredit/(Debit) Fair Value Change Account 7,014 7,014 -Policy Liabilities 17,998,207 11,319,055 350,390Provision for linked liabilities 140,652,998 - -Funds for Future Appropriations 1,071,987 918,099 1,860Reserve for unit linked policies not likely to be revived 3,951,268 - -Loans 76,970 76,970 -Investments 30,912,362 12,244,503 354,548Assets Held to Cover Linked Liabilities 140,652,998 - -Fixed Assets 1,644,417 - -Cash and bank balances 3,552,963 - -Advances & Other AssetsOutstanding Premium 268,465 248,279 5,161Due from Other Entities carrying on Insurance business 21,567 20,795 -Income accrued on investments 697,418 330,513 5,427Other Assets 840,973 - -Current LiabilitiesAgents Balance 2,707,151 139,329 342Balance due to other Insurance Companies 70,312 25,945 360Sundry Creditors 3,110,997 17,126 383Claims Outstanding 253,700 30,892 73Premium received in advance 211,051 7,051 56Premium & Other Deposits 903,774 - -Temporary overdraft as per books of accounts 795,371 - -Provisions 433,509 - -48

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009(Amount in Rs. '000)Non - Participating Policyholders' Unit Linked Policyholders' Shareholders' UnallocatedIndividual Individual Individual Group Individual Individual Group Super- GroupAssuarance Health Annuity Assurance Assuarance Pension annuation Gratuity- - - - - - - - - -191,904 106,164 101,389 1,222,238 4,501,717 194,008 1,695 9,647 - -- - - - 131,658,111 6,198,277 384,503 2,412,107 - -43,964 94,719 2,708 9,996 - - 641 - - -- - - - 3,951,268 - - - - -- - - - - - - - - -238,972 201,337 104,611 1,240,846 8,473,612 337,669 2,439 18,611 7,695,214 -- - - - 131,658,111 6,198,277 384,503 2,412,107 - -- - - - - - - - - 1,644,417- - - - - - - - - 3,552,9638,045 6,880 100 - - - - - - -772 - - - - - - - - -3,053 3,067 1,394 14,854 144,388 10,720 25 471 183,506 -- - - - - - - - - 840,9734,641 12,035 45 50,282 2,442,982 57,495 - - - -- 25,593 - 8,511 9,903 - - - - -886 - 395 - - - - - - 3,092,2073,545 9,746 - 39,748 168,311 1,385 - - - -90 25 - - 200,798 3,031 - - - -- - - - - - - - - 903,774- - - - - - - - - 795,371- - - - - - - - - 433,50949

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009 (continued)21 : Segment ReportingParticulars Previous Year Participating Policyholders'Total Individual IndividualAssuarancePensionCredit/(Debit) Fair Value Change Account 99,460 99,460-Policy Liabilities 10,629,046 7,956,912 283,864Provision for linked liabilities 109,541,697 - -Funds for Future Appropriations 949,408 877,422 2,392Reserve for unit linked policies not likely to be revived 2,960,433 - -Loans 30,937 30,934 3Investments 26,145,823 8,974,379 287,815Assets Held to Cover Linked Liabilities 109,541,697 - -Cash and bank balances 3,730,894 - -Fixed Assets 1,090,678 - -Advances & Other AssetsOutstanding Premium 233,726 221,989 4,833Due from Other Entities carrying on Insurance business 3,779 2,927 -Income accrued on investments 550,108 222,140 4,078Other Assets 580,293 - -Current LiabilitiesAgents Balance 1,774,831 35,325 152Balance due to other Insurance Companies 18,869 4,061 239Sundry Creditors 5,910,554 9,708 355Claims Outstanding 218,655 26,265 57Premium received in advance 170,855 923 3Premium & Other Deposits 1,739,853 - -Payable - unsettled investment contracts 1,211 - -Temporary overdraft as per books of accounts 409,891 - -Provisions 275,464 - -50

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDAnnual Report 2008-2009(Amount in Rs. '000)Non - Participating Policyholders' Unit Linked Policyholders' Shareholders' UnallocatedIndividual Individual Individual Group Individual Individual Group Super- GroupAssuarance Health Annuity Assurance Assuarance Pension annuation Gratuity- - - - - - - - - -169,977 33,645 62,357 314,661 1,728,642 74,888 - 4,100 - -- - - - 102,438,036 4,974,370 324,221 1,805,070 - -35,173 30,612 3,809 - - - - - - -- - - - 2,960,433 - - - - -- - - - - - - - - -205,672 64,511 66,586 314,840 4,690,975 75,066 2,244 4,880 11,458,855 -- - - - 102,438,036 4,974,370 324,221 1,805,070 - -- - - - - - - - - 3,730,894- - - - - - - - - 1,090,6786,904 - - - - - - - - -772 - - - 80 - - - - -2,707 - 714 6,569 88,938 1,661 22 32 223,247 -- - - - - - - - - 580,293327 3,559 19 1,590 1,714,550 19,309 - - - -903 2,508 - - 11,139 19 - - - -150 - - - - - - - - 5,900,341637 89 - 21,544 169,976 87 - - - -24 8 - - 169,897 - - - - -- - - - - - - - - 1,739,853- - - - - - - - - 1,211- - - - - - - - - 409,891- - - - - - - - - 275,46451

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 200922 : Summary of Financial StatementsSr. Particulars 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04Policyholders' Account1 Gross premium income 106,245,213 97,253,110 53,452,422 31,335,778 10,016,752 2,207,9852 Net premium income # 106,010,710 97,120,392 53,359,827 31,282,213 9,980,307 2,192,5213 Income from investments (Net) @ (31,148,700) 7,001,918 3,096,821 312,417 84,409 45,1784 Other Income 1,770,168 3,069,470 1,024,594 1,375,771 504,221 413,5295 Total income 76,632,178 107,191,780 57,481,242 32,970,401 10,568,937 2,651,2296 Commissions (Net) 10,515,493 14,968,622 9,466,813 3,418,670 1,458,351 504,4247 Brokerage - - - - - -8 Operating Expenses related to insurance business 18,757,915 20,043,360 10,730,189 4,868,110 2,154,636 1,323,7179 Provisions for tax 157,738 93,313 73,054 41,020 - -10 Total Expenses 29,431,146 35,105,295 20,270,056 8,327,800 3,612,987 1,828,14111 Payment to policy holders* 7,565,608 8,516,733 6,987,347 6,536,048 565,451 27,91712 Increase in actuarial liability** 38,480,462 61,589,436 28,845,060 17,488,362 6,416,858 745,85413 Surplus/ Deficit from operations 1,154,962 1,980,316 1,378,779 618,191 (26,359) 49,317Shareholders’ Account14 Total income under Shareholders’ Account 906,749 795,036 277,123 106,879 88,271 135,93415 Profit/ (loss) before tax (706,727) (2,138,825) (717,006) (985,406) (367,515) (268,073)16 Provisions for tax 85 80 27 36 44 5717 Profit/ (loss) after tax (706,812) (2,138,905) (717,033) (985,442) (367,559) (268,130)18 Profit/ loss carried to Balance Sheet (5,605,846) (4,899,034) (2,760,129) (2,043,096) (1,057,654) (690,095)19 Miscellaneous(A)(B)Policyholders’ account:Total funds (including unit linked funds) 163,681,474 124,180,044 60,626,486 30,431,495 7,736,819 1,144,717Total investments(including unit linked investments) 163,870,146 124,228,665 60,919,159 30,459,323 7,736,825 1,144,717Yield on investments (%)(excluding unit linked investments) 8.99% 8.77% 7.17% 9.80% 7.20% 9.68%Shareholders’ account:Total funds(net of debit balance in Profit & Loss A/C) 6,500,794 7,207,708 4,245,236 2,955,263 1,616,518 1,790,826Total investments 7,695,214 11,458,855 6,536,500 2,780,868 1,636,972 1,407,573Yield on investments (%) 9.26% 8.66% 7.36% 5.80% 5.60% 9.68%20 Yield on total investments(excluding unit linked investments) 9.08% 8.72% 7.24% 8.40% 6.30% 9.68%21 Paid up equity capital 1,507,090 1,507,090 1,503,680 1,502,338 1,500,787 1,500,66022 Net worth 6,500,794 7,207,708 4,245,236 2,955,263 1,616,518 1,790,82623 Total Assets(net of debit balance in Profit & Loss A/C) 170,182,268 131,387,754 64,871,722 33,386,758 9,353,337 2,935,54324 Earning per share (Rs.) (4.69) (14.22) (4.77) (6.56) (2.45) (1.79)25 Book value per share (Rs.) 43.13 47.83 28.23 19.67 10.77 11.93Capital + Surplus/Loss divided by nos. of shares# Net of reinsurance@ Net of losses* Inclusive of interim bonuses, if any** Includes fund reserve since 2003-04(Amount in Rs. '000)52

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Schedules forming part of financial statements for the year ended 31st March 2009Annual Report 2008-2009Schedules forming part of financial statements for the year ended 31st March 200923 : Ratios (Expressed in number of times)2008-09 2007-081 New business premium income growth (segment-wise)(New business premium for current year divided by new businesspremium for previous year)Participating 2.22 0.51Non Participating 4.31 1.27Unit Linked 0.64 1.582 Net retention ratio 0.998 0.999(Net premium divided by gross premium)3 Ratio of expenses of management (**) 0.26 0.36(Expenses of management including commission divided bythe total gross direct premium with Single Premium)4 Ratio of expenses of management (**) 0.28 0.39(Expenses of management including commission expenses divided bythe total gross direct premium without Single Premium)5 Commission ratio 0.10 0.15(Gross Commission paid to Gross premium)6 Ratio of policy holders’ liabilities to shareholders’ funds 25.18 17.237 Growth rate of share holders’ funds 0.90 1.708 Ratio of surplus to policy holders’ liability (*) 0.01 0.029 Change in net worth 0.90 1.7010 Profit after tax/ Total income 0.00 0.0011 (Total Real Estate + Loans) / Cash & invested assets 0.004 0.00212 Total investments / (Capital + Surplus) 26.39 18.8313 Total affiliated investments/ (Capital + Surplus) 0.00 0.00* Surplus including Contribution from Shareholders' account** Excluding Service tax borne by Unit linked policy holders'24. The Revenue Account and Balance Sheet for unit linked business has been annexed to this schedule as Appendix II. Disclosure forULIP Business as per Unit Linked Disclosure Norms issued vide Circular No. 054/IRDA/F & A/FEB-07 dated February 20, 2007, hasbeen annexed to this schedule as Appendix III.For Bajaj Allianz Life Insurance Company LimitedRahul Bajaj Kamesh Goyal Niraj BajajChairman Alternate Director and DirectorChief Executive OfficerSanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &CompliancePlace : PunethDate : 11 May 200953

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Schedules forming part of financial statements for the year ended 31st March 2009Related Party DisclosuresAppendix I Refer Schedule 16 Note 17(Amount in Rs.'000)Sr. Related Party Relationship Current Year Previous YearNo. Amount Nature of Transaction Balance Amount Nature of Transaction BalanceOutstandingOutstandingas at 31stas at 31stMarch 2009 March 2008Receivable/Receivable/(Payable)(Payable)1 Bajaj Finserv Ltd. Holding 5,245 Deputation expenses of - - Deputation expenses of Advisor- -Company Advisor -Investments Investments -- Amount contributed towards - 1,658 Amount contributed towards -capitalcapital2 Bajaj Auto Ltd. Group - Deputation expenses of Advisor - - 4,722 Deputation expenses of Advisor - (1,211)(Now known as Company Investments InvestmentsBajaj Holdings 1,061 Insurance premium received - 1,546 Insurance premium received -and Investment 682 Insurance claims paid - 744 Insurance claims paid -Limited) - Amount contributed towards - 866 Amount contributed towards -capitalcapital3 Bajaj Auto Group 47,720 Insurance premium received - 1,751 Insurance premium received -Finance Ltd. Company 600 Insurance claims paid - 1,853 Insurance claims paid -4 Bajaj Allianz Group 4,450 Insurance Premium Received (32,771) 3,887 Insurance Premium Received -General Company 5,532 Insurance Premium payment - 7,435 Insurance Premium payment -Insurance Co. Ltd. 9,380 Reimbursement received of - 4,938 Reimbursement received of -Revenue and Capital expenditureRevenue and Capital expenditure42,151 Paid towards the Revenue and - 37,023 Reimbursement made of Revenue -Capital expenditure and Capital expenditure690 Insurance Claim Received - 236 Insurance Claim Received -1,667 Insurance Claims Paid - 2,581 Insurance Claims Paid -5 Bajaj Allianz Group 5,694 Reimbursement received of 8,588 3,394 Reimbursement received of 3,088Financial Company Revenue Expenditure Revenue ExpenditureDistributors Ltd. 184,968 Revenue expenditure for - - -Outsourced Employees cost.2,012 Rent - - -6 Allianz SE Shareholder 55,178 Revenue expenditure for OPUS - 97,257 Revenue expenditure for OPUS 1,1721,467 Reimbursement received of - - Reimbursement received of -Revenue ExpenditureRevenue Expenditure- Amount contributed towards - 5,098,837 Amount contributed towards -capitalcapital7 Allianz Insurance Group 12 Reimbursement received of 1,138 2,677 Reimbursement received of 953Management Company Revenue Expenditure Revenue ExpenditureAsia Pacific 60 Reimbursement made of - 709 Reimbursement made of -Pte. Ltd. Revenue Expenditure Revenue Expenditure8 Allianz SE Group 91,490 Reinsurance Premium Payable (68,934) 47,097 Reinsurance Premium Payable (14,071)Reinsurance Company 18,456 Reinsurance Commission 13,066 8,226 Reinsurance Commission 2,984Branch Asia Receivable ReceivablePacific. 4,782 Reinsurance profit Commission 4,782 - Reinsurance profit Commission -ReceivableReceivable34,012 Reinsurance Claims Receivable 31,424 11,943 Reinsurance Claims Receivable 7,0689 Allianz Life Group 582 Reimbursement made of - 121 Reimbursement made of (121)Insurance Company Revenue Expenditure Revenue ExpenditureMalaysia Berhad10 Hind Musafir Group 270 Commission on Travel Expenses (539) 12 Commission on Travel Expenses -Agency Ltd. Company 345 Charges for Domestic Services - 23 Charges for Domestic Services (15)11 IDS Gmbh Group 1,057 Remuneration for IDS serives (502) - Remuneration for IDS serives -Company12 Allianz MENA Group 4,284 Reimbursement received of 1,222 - Reimbursement received of -Holding Co. SPC Company Revenue Expenditure Revenue Expenditure13 Kamesh Goyal Key 15,628 Remuneration - 5,633 Remuneration -ManagementPersonnel14 Sam Ghosh Key - Remuneration - 3,681 Remuneration -(uptoManagement30/09/2007) Personnel54

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the yearSchedule Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced BalancedFund Pension Fund Fund Allocation Allocation Fund Plus Fund Plus PensionFund Pension Fund Fund3,346 - 49 460,614 13,955 - - -229 3,165 41,095 78,220 2,629 - - -564 1,525 25,507 137,375 6,080 - - -(3,397) (52,472) (694,084) (995,275) (24,107) - - -(429) (37,286) (447,387) (761,174) (27,252) - - -(2,912) (7,396) (172,045) 465,799 9,504 - - -(2,599) (92,464) (1,246,865) (614,441) (19,191) - - -- - - - - - - -662 3,062 44,674 153,141 5,267 - - -32 2,634 285,918 1,507,073 18,073 - - -694 5,696 330,592 1,660,214 23,340 - - -(3,293) (98,160) (1,577,457) (2,274,655) (42,531) - - -17,323 19,877 (51,507) (698,632) (1,899) - - -14,030 (78,283) (1,628,964) (2,973,287) (44,430) - - -Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSPolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalAPPLICATION OF FUNDSInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Schedule Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced BalancedFund Pension Fund Fund Allocation Allocation Fund Plus Fund Plus PensionFund Pension Fund Fund6,052 266,788 5,105,796 21,021,895 788,313 1,291,026 834,681 98,77114,030 (78,283) (1,628,964) (2,973,287) (44,430) - - -20,082 188,505 3,476,832 18,048,608 743,883 1,291,026 834,681 98,77118,136 184,256 3,363,035 17,267,896 704,026 1,290,955 834,672 98,7661,980 10,584 232,855 850,183 41,576 71 9 534 6,335 119,058 69,471 1,719 - - -1,946 4,249 113,797 780,712 39,857 71 9 520,082 188,505 3,476,832 18,048,608 743,883 1,291,026 834,681 98,77120,082 188,505 3,476,832 18,048,608 743,883 1,291,026 834,681 98,7711,428,657 21,292,035 393,535,132 1,969,851,531 84,341,382 96,022,849 53,519,399 6,644,50314.0565 8.8533 8.8349 9.1624 8.8199 13.4450 15.5959 14.8648*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.55

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the yearSchedule Bond Bond Capital Capital Capital Capital Capital CashFund Pension Guarantee Guarantee Guarantee Shield Shield FundFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II138,558 12,853 7,203 503 2,257 12,900 596 27,485- - 345 29 288 - - -21,270 2,060 43 18 455 2,416 2,331 79,92345,599 6,323 (300) (25) (229) 62 17,114 8,011(12,958) (1,474) (801) (29) (316) - (16,924) (681)68,440 6,169 (6,150) (701) (7,592) 6,582 10,765 -260,909 25,931 340 (205) (5,137) 21,960 13,882 114,738- - - - - - - 12,86316,715 1,525 1,400 97 621 4,402 1,430 10,291241,063 3,049 4,362 311 1,958 508 156 52,048257,778 4,574 5,762 408 2,579 4,910 1,586 75,2023,131 21,357 (5,422) (613) (7,716) 17,050 12,296 39,536(63,101) 6,733 6,111 514 4,604 - - 126,329(59,970) 28,090 689 (99) (3,112) 17,050 12,296 165,865Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSPolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalAPPLICATION OF FUNDSInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Schedule Bond Bond Capital Capital Capital Capital Capital CashFund Pension Guarantee Guarantee Guarantee Shield Shield FundFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II3,270,147 369,424 111,742 7,779 50,832 808,853 478,796 971,015(59,970) 28,090 689 (99) (3,112) 17,050 12,296 165,8653,210,177 397,514 112,431 7,680 47,720 825,903 491,092 1,136,8802,992,348 351,820 109,947 7,506 47,332 735,941 404,427 1,126,823220,279 45,963 2,615 183 442 91,702 87,674 12,4032,450 269 131 9 54 1,740 1,009 2,346217,829 45,694 2,484 174 388 89,962 86,665 10,0573,210,177 397,514 112,431 7,680 47,720 825,903 491,092 1,136,8803,210,177 397,514 112,431 7,680 47,720 825,903 491,092 1,136,880248,556,800 30,129,883 10,333,666 721,390 4,714,298 78,975,616 47,235,016 85,603,77712.9153 13.1934 10.8801 10.6474 10.1224 10.4577 10.3968 13.2807*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.56

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the yearSchedule Cash Cash Debt Debt Debt Equity Equity EquityPlus Plus Fund Plus Plus Fund Gain GrowthFund Pension Fund Fund Pension Fund Fund Fund41,528 5,495 100,596 110,523 11,218 19 4,266 31,760- - - - - 56,456 113,558 383,618111,368 5,720 13,361 16,602 1,530 1,947 75,319 283,0399,361 306 34,458 39,756 3,712 (33,776) (1,948,013) (4,423,117)(1,274) (84) (18,175) (17,851) 26 (1,486) (223,622) (951,245)- - 36,180 42,536 2,661 (1,704,558) (736,609) (6,430,902)160,983 11,437 166,420 191,566 19,147 (1,681,398) (2,715,101) (11,106,847)- - 15,442 - - 47,929 97,396 -10,262 731 12,354 9,477 975 38,343 116,875 503,160102,003 5,603 49,699 37,166 4,235 132,347 283,217 3,371,013112,265 6,334 77,495 46,643 5,210 218,619 497,488 3,874,17348,718 5,103 88,925 144,923 13,937 (1,900,017) (3,212,589) (14,981,020)383,086 25,535 133,612 178,780 17,134 2,083,060 1,877,286 (1,760,901)431,804 30,638 222,537 323,703 31,071 183,043 (1,335,303) (16,741,921)Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSPolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalAPPLICATION OF FUNDSInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Schedule Cash Cash Debt Debt Debt Equity Equity EquityPlus Plus Fund Plus Plus Fund Gain GrowthFund Pension Fund Fund Pension Fund Fund Fund984,752 66,361 371,158 712,142 74,193 2,537,406 8,651,002 55,142,892431,804 30,638 222,537 323,703 31,071 183,043 (1,335,303) (16,741,921)1,416,556 96,999 593,695 1,035,845 105,264 2,720,449 7,315,699 38,400,9711,398,247 96,121 547,599 945,626 85,104 2,707,248 7,279,417 37,076,56219,271 942 48,874 91,178 20,257 33,253 86,440 2,601,895962 64 2,778 959 97 20,056 50,158 1,277,48618,309 878 46,096 90,219 20,160 13,197 36,282 1,324,4091,416,556 96,999 593,695 1,035,845 105,264 2,720,449 7,315,699 38,400,9711,416,556 96,999 593,695 1,035,845 105,264 2,720,449 7,315,699 38,400,97199,935,497 6,881,194 46,374,861 75,478,857 7,516,522 193,511,716 383,200,470 4,346,159,33314.1747 14.0963 12.8021 13.7236 14.0044 14.06 19.0910 8.8356*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.57

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsScheduleEquity GrowthEquity Equity Equity Index Equity Index Equity Equity Midcap Equity MidcapPension Index Index Pension Pension Midcap Pension PlusFund Fund Fund - II Fund Fund - II Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year52 5 294 - 15 36 - 5418,561 30,572 264,620 2,266 20,110 31,268 3,129 46,48813,916 1,186 18,663 103 1,281 11,158 1,114 19,592(190,912) (18,602) (174,690) (1,452) (14,444) (222,458) (15,454) (316,866)(185,053) (18,458) (221,017) (6,695) (16,924) (125,781) (24,174) (202,333)(202,014) (914,658) (7,035,627) (60,496) (542,868) (98,554) (2,806) (199,904)(545,450) (919,955) (7,147,757) (66,274) (552,830) (404,331) (38,191) (652,969)- - - - - 14,473 - -24,333 20,760 231,794 1,554 17,359 17,368 1,773 27,11924,162 66,498 3,089,285 4,613 33,528 44,796 527 41,96948,495 87,258 3,321,079 6,167 50,887 76,637 2,300 69,088(593,945) (1,007,213) (10,468,836) (72,441) (603,717) (480,968) (40,491) (722,057)(20,380) 811,317 (1,232,462) 82,099 (65,943) 380,946 62,016 851,210(614,325) (195,896) (11,701,298) 9,658 (669,660) (100,022) 21,525 129,153Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Equity GrowthEquity Equity Equity Index Equity Index Equity Equity Midcap Equity MidcapPension Index Index Pension Pension Midcap Pension PlusFund Fund Fund - II Fund Fund - II Fund Fund Fund2,254,653 1,651,211 40,879,569 87,162 2,602,686 1,142,075 74,208 1,437,694(614,325) (195,896) (11,701,298) 9,658 (669,660) (100,022) 21,525 129,1531,640,328 1,455,315 29,178,271 96,820 1,933,026 1,042,053 95,733 1,566,8471,582,562 1,443,885 28,282,717 98,071 1,855,442 1,025,779 96,900 1,540,41481,591 20,583 1,902,057 167 142,558 18,698 36 28,42323,824 9,153 1,006,503 1,418 64,974 2,424 1,203 1,99057,767 11,430 895,554 (1,251) 77,584 16,274 (1,167) 26,4331,640,329 1,455,315 29,178,271 96,820 1,933,026 1,042,053 95,733 1,566,8471,640,329 1,455,315 29,178,271 96,820 1,933,026 1,042,053 95,733 1,566,847188,457,689 80,494,293 2,984,464,942 6,094,979 201,759,374 71,682,770 5,720,164 101,853,1968.7040 18.0797 9.7767 15.8854 9.5808 14.5370 16.7361 15.3834*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.58

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsScheduleEquity Equity Plus Group Group Group Life Long Liquid LiquidPlus Pension Debt Liquid Short Term Gain Pension FundFund Fund Fund Fund Debt Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year3,398 48 42,470 - 71 14,769 988 11,038177,005 12,048 - - - - - -109,017 8,151 3,453 4,262 - 1,964 2,565 39,241(3,121,225) (164,492) 34,379 280 - 3,388 207 2,935(450,283) (88,049) (2,451) - - 3,137 (28) (384)(992,382) (24,175) 16,990 - (56) 4,832 - -(4,274,470) (256,469) 94,841 4,542 15 28,090 3,732 52,830- - - - - 2,315 - -180,803 11,955 5,164 244 7 1,852 317 4,522383,459 19,562 507 29 1 5,031 1,114 79,957564,262 31,517 5,671 273 8 9,198 1,431 84,479(4,838,732) (287,986) 89,170 4,269 7 18,892 2,301 (31,649)3,421,900 302,069 - - - 12,105 1,420 (14,322)(1,416,832) 14,083 89,170 4,269 7 30,997 3,721 (45,971)Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Equity Equity Plus Group Group Group Life Long Liquid LiquidPlus Pension Debt Liquid Short Term Gain Pension FundFund Fund Fund Fund Debt Fund Fund Fund12,327,596 727,211 1,080,295 890,401 20,000 149,010 48,033 788,370(1,416,832) 14,083 89,170 4,269 7 30,997 3,721 (45,971)10,910,764 741,294 1,169,465 894,670 20,007 180,007 51,754 742,39910,871,367 735,539 868,550 95,620 9,466 175,024 49,049 719,342102,911 10,069 301,748 799,111 10,549 5,336 2,745 23,66063,514 4,314 833 61 8 353 40 60339,397 5,755 300,915 799,050 10,541 4,983 2,705 23,05710,910,764 741,294 1,169,465 894,670 20,007 180,007 51,754 742,39910,910,764 741,294 1,169,465 894,670 20,007 180,007 51,754 742,399548,795,878 41,102,256 103,950,701 85,070,398 1,998,203 15,085,493 4,060,828 58,177,45019.8813 18.0354 11.2502 10.5168 10.0126 11.9325 12.7446 12.7610*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.59

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsSchedulePremier Premier Premier Premier Premier Premier Premier PureBalanced Bond Debt Equity Equity Gain Equity Growth Equity Index EquityFund Fund Fund Fund Fund Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year- 15,143 11,261 2 461 74 28 -- - - 6,170 9,800 22,677 13,071 11,879- 2,656 2,014 181 4,717 11,017 576 5,561- 4,322 4,304 (4,489) (136,579) (280,531) (10,363) (61,148)- (6) (3,748) (6,617) (85,536) (236,904) (26,700) (49,160)- 5,520 4,085 (181,537) 356 (216,505) (376,385) (18,541)- 27,635 17,916 (186,290) (206,781) (700,172) (399,773) (111,409)- - - - - - - -- 5,429 3,184 9,412 14,251 43,197 24,396 9,642- 3,994 7,766 15,270 23,471 40,409 18,135 118,007- 9,423 10,950 24,682 37,722 83,606 42,531 127,649- 18,212 6,966 (210,972) (244,503) (783,778) (442,304) (239,058)- 13,079 25,104 187,409 176,347 61,049 45,299 48,781- 31,291 32,070 (23,563) (68,156) (722,729) (397,005) (190,277)Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Premier Premier Premier Premier Premier Premier Premier PureBalanced Bond Debt Equity Equity Gain Equity Growth Equity Index EquityFund Fund Fund Fund Fund Fund Fund Fund63,456 237,122 61,532 328,203 594,723 2,044,090 1,214,293 893,045- 31,291 32,070 (23,563) (68,156) (722,729) (397,005) (190,277)63,456 268,413 93,602 304,640 526,567 1,321,361 817,288 702,76863,456 249,012 89,567 304,703 515,411 1,309,738 807,678 728,965- 20,024 4,314 585 14,584 14,785 14,429 29,954- 623 279 648 3,428 3,162 4,819 56,151- 19,401 4,035 (63) 11,156 11,623 9,610 (26,197)63,456 268,413 93,602 304,640 526,567 1,321,361 817,288 702,76863,456 268,413 93,602 304,640 526,567 1,321,361 817,288 702,7685,442,267 21,873,782 7,329,613 29,533,896 50,997,278 159,373,453 87,443,607 58,303,07311.6599 12.2710 12.7705 10.3150 10.3254 8.2910 9.3465 12.0537*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.60

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24 Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2009(Amount in Rs. '000)ParticularsSchedulePure Pure Stock Secure Stable TotalStock Pension Fund FundFund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeMiscellaneous IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Total Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year- - 25,363 67,205 1,178,49913,868 51 452 2,939 1,366,6067,475 40 4,827 11,605 1,074,788(99,835) (89) (8,606) (109,337) (12,911,850)(6,256) (762) (4,425) (35,418) (4,314,447)26,652 432 1,745 36,608 (19,189,517)(58,096) (328) 19,356 (26,398) (32,795,921)- - - - 190,41814,371 63 4,511 11,761 1,622,605291,158 63 271 205 10,416,254305,529 126 4,782 11,966 12,229,277(363,625) (454) 14,574 (38,364) (45,025,198)(142,584) - 560 57,784 7,368,747(506,209) (454) 15,134 19,420 (37,656,451)Appendix II Refer Schedule 16 Note 24 Form A-BS (UL)stFund Balance Sheet as at 31 March 2009(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a)Net Assets as per Balance Sheet (Rs. in thousands)(b)Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Pure Pure Stock Secure Stable TotalStock Pension Fund FundFund Fund2,024,327 8,837 401,793 256,038 178,309,449(506,209) (454) 15,134 19,420 (37,656,451)1,518,118 8,383 416,927 275,458 140,652,9981,541,181 8,432 395,321 270,017 135,407,02295,810 854 22,077 5,772 8,174,064118,873 903 471 331 2,928,088(23,063) (49) 21,606 5,441 5,245,9761,518,118 8,383 416,927 275,458 140,652,9981,518,118 8,383 416,927 275,458131,067,169 1,046,727 30,756,733 20,825,32811.5827 8.0083 13.5556 13.2270*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.61

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BondFund Pension Fund Allocation Allocation Fund Plus Fund Plus Pension FundFund Fund Pension Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance50,103 183,700 2,563,250 10,842,776 288,258 1,503,103 923,231 119,980 1,253,8188,236 129,450 3,642,412 12,858,695 555,787 69,321 144,694 17,810 3,180,89152,287 46,362 1,099,866 2,679,576 55,732 281,398 233,244 39,019 1,164,5626,052 266,788 5,105,796 21,021,895 788,313 1,291,026 834,681 98,771 3,270,147Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)BondCapital Capital Capital Capital Capital Cash Cash Cash PlusPension Guarantee Guarantee Guarantee Shield Shield Fund Plus PensionFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance91,745 111,220 7,796 50,383 - - 856,359 1,376,695 86,216439,180 4,274 304 2,026 885,042 488,083 522,426 872,698 62,176161,501 3,752 321 1,577 76,189 9,287 407,770 1,264,641 82,031369,424 111,742 7,779 50,832 808,853 478,796 971,015 984,752 66,361Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)DebtDebt Debt Plus Equity Equity Equity Equity Growth Equity EquityFund Plus Pension Fund Gain Growth Pension Index IndexFund Fund Fund Fund Fund Fund Fund - IIOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance407,535 1,111,369 65,700 1,851,492 7,249,011 28,020,683 1,499,414 1,217,355 16,750,358283,329 874,730 119,852 1,394,648 3,126,244 39,057,468 1,204,844 953,539 31,844,921319,706 1,273,957 111,359 708,734 1,724,253 11,935,259 449,605 519,683 7,715,710371,158 712,142 74,193 2,537,406 8,651,002 55,142,892 2,254,653 1,651,211 40,879,56962

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Equity Index Equity Index Equity Equity Midcap Equity Midcap Equity Equity Plus Group GroupPension Pension Midcap Pension Plus Plus Pension Debt LiquidFund Fund - II Fund Fund Fund Fund Fund Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance54,786 1,366,634 973,788 87,721 1,364,051 11,072,463 675,071 46,157 -84,912 1,641,665 399,771 42,840 552,978 4,718,691 278,135 1,120,145 892,13352,536 405,613 231,484 56,353 479,335 3,463,558 225,995 86,007 1,73287,162 2,602,686 1,142,075 74,208 1,437,694 12,327,596 727,211 1,080,295 890,401Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Group Short Life Long Liquid Liquid Premier Premier Premier Premier PremierTerm Debt Gain Pension Fund Balanced Bond Debt Equity Equity GainFund Fund Fund Fund Fund Fund Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance- 167,028 26,486 344,378 77,114 163,761 134,655 315,804 647,81220,000 132,369 35,771 731,100 3,227 148,316 122,554 75,390 93,487- 150,387 14,224 287,108 16,885 74,955 195,677 62,991 146,57620,000 149,010 48,033 788,370 63,456 237,122 61,532 328,203 594,723Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Premier Premier Pure Pure Pure Stock Secure Stable TotalEquity Growth Equity Index Equity Stock Pension Fund FundFund Fund Fund Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance1,852,476 941,738 614,405 807,709 - 341,730 1,615,633 102,172,950308,422 340,988 561,739 1,934,963 9,715 127,972 24,818 117,145,181116,808 68,433 283,099 718,345 878 67,909 1,384,413 41,008,6822,044,090 1,214,293 893,045 2,024,327 8,837 401,793 256,038 178,309,44963

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Bond Bond Capital Capital CapitalFund Pension Fund Allocation Allocation Fund Pension Guarantee Guarantee GuaranteeFund Fund Pension Fund Fund Fund- 2012 Fund- 2014 Fund- 2017APPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual Fund- - - 38,013 - 366,420 19,474 35,540 2,057 13,4813,777 - - 1,050,777 52,064 625,247 106,859 48,707 1,271 3,3004,659 - - 4,787,029 302,646 1,358,462 152,883 6,806 2,565 13,5175,389 146,329 2,667,184 5,188,907 200,450 - - 14,976 1,319 12,992795 22,927 423,520 5,130,530 110,972 385,819 47,104 579 - 1,1462,900 - - 357,900 10,100 256,400 25,500 - - -Total17,520 169,256 3,090,704 16,553,156 676,232 2,992,348 351,820 106,608 7,212 44,436OTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual Fund- - - - - - - - - -- - - - - - - - - -616 12,188 222,307 714,740 27,794 - - 3,339 294 2,896- - - - - - - - - -- 2,812 50,024 - - - - - - -Total616 15,000 272,331 714,740 27,794 - - 3,339 294 2,896Grand Total18,136 184,256 3,363,035 17,267,896 704,026 2,992,348 351,820 109,947 7,506 47,332% of Approved to Total% of Other than Approved to Total96.60% 91.86% 91.90% 95.86% 96.05% 100.00% 100.00% 96.96% 96.08% 93.88%3.40% 8.14% 8.10% 4.14% 3.95% 0.00% 0.00% 3.04% 3.92% 6.12%64

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)Capital Capital Cash Cash Cash Plus Debt Debt Debt Plus Equity EquityShield Shield Fund Plus Pension Fund Plus Pension Fund GainFund- I Fund- II Fund Fund Fund Fund Fund- - - - - 182,976 168,045 10,961 - 5,741206,836 276,921 - - - 211,487 356,376 29,257 - -89,441 62,518 - - - 764,507 688,886 77,898 - -- - - - - - - - 2,644,221 5,689,244439,664 64,988 1,126,823 1,398,247 96,121 39,441 146,255 11,751 12,346 781,480- - - - - 101,300 91,500 16,400 - -735,941 404,427 1,126,823 1,398,247 96,121 1,299,711 1,451,062 146,267 2,656,567 6,476,465- - - - - - - - - -- - - - - - - - - -- - - - - - - - 589,523 802,952- - - - - - - - - -- - - - - - - - - -- - - - - - - - 589,523 802,952735,941 404,427 1,126,823 1,398,247 96,121 1,299,711 1,451,062 146,267 3,246,090 7,279,417100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 81.84% 88.97%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 18.16% 11.03%65

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)Equity Equity Growth Equity Equity Equity Index Equity Index Equity Equity Midcap Equity EquityGrowth Pension Index Index Pension Pension Midcap Pension Midcap PlusFund Fund Fund Fund - II Fund Fund - II Fund Fund Plus Fund Fund531 - - - - - - - - -- - - - - - - - - -- - - - - - - - - -25,699,116 1,104,540 1,442,805 22,835,456 110,583 1,495,783 832,770 78,743 1,251,141 8,522,2596,176,485 250,691 6,610 355,555 437 26,142 90,420 10,025 159,928 1,149,701- - - - - - - - - -31,876,132 1,355,231 1,449,415 23,191,011 111,020 1,521,925 923,190 88,768 1,411,069 9,671,960- - - - - - - - - -- - - - - - - - - -5,200,430 227,331 321,673 5,091,706 24,655 333,517 69,115 6,538 103,830 1,201,440- - - - - - - - - -- - - - - - 33,474 1,594 25,515 -5,200,430 227,331 321,673 5,091,706 24,655 333,517 102,589 8,132 129,345 1,201,44037,076,562 1,582,562 1,771,088 28,282,717 135,675 1,855,442 1,025,779 96,900 1,540,414 10,873,40085.97% 85.64% 81.84% 82.00% 81.83% 82.02% 90.00% 91.61% 91.60% 88.95%14.03% 14.36% 18.16% 18.00% 18.17% 17.98% 10.00% 8.39% 8.40% 11.05%66

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)Equity Plus Group Group Group Short Life Long Liquid Liquid Premier Premier PremierPension Debt Liquid Term Debt Gain Pension Fund Bond Debt EquityFund Fund Fund Fund Fund Fund Fund Fund Fund- 182,118 - - 5,080 - - 8,929 10,697 -- 204,197 - 5,229 39,911 - - 89,042 60,567 -- 379,482 - 4,237 97,773 - - 121,124 37,688 -575,059 - - - - - - - - 266,95179,097 72,153 95,420 - 24,560 49,049 719,342 23,717 21,216 1,094- 30,600 200 - 7,700 - - 6,200 - -654,156 868,550 95,620 9,466 175,024 49,049 719,342 249,012 130,168 268,045- - - - - - - - - -- - - - - - - - - -81,383 - - - - - - - - 59,514- - - - - - - - - -- - - - - - - - - -81,383 - - - - - - - - 59,514735,539 868,550 95,620 9,466 175,024 49,049 719,342 249,012 130,168 327,55988.94% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 81.83%11.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 18.17%67

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)Premier Premier Premier Pure Pure Pure Stock Secure Stable TotalEquity Gain Equity Growth Equity Index Equity Stock Pension Fund FundFund Fund Fund Fund Fund Fund- - 4,449 108,016 216,751 1,735 80,708 25,251 1,486,974- - - - - - 76,169 41,733 3,489,728- - - - - - 140,612 79,540 9,172,273413,810 937,858 654,367 547,731 1,168,790 5,947 24,055 23,103 84,561,87843,156 182,368 2,975 - - - 52,239 76,963 19,909,852- - - - - - 18,700 20,700 946,100456,966 1,120,226 661,791 655,747 1,385,541 7,682 392,483 267,290 119,566,805- - - - - - - - -- - - - - - - - -58,445 189,512 145,887 73,218 155,640 750 2,838 2,727 15,726,798- - - - - - - - -- - - - - - - - 113,41958,445 189,512 145,887 73,218 155,640 750 2,838 2,727 15,840,217515,411 1,309,738 807,678 728,965 1,541,181 8,432 395,321 270,017 135,407,02288.66% 85.53% 81.94% 89.96% 89.90% 91.11% 99.28% 98.99% 88%11.34% 14.47% 18.06% 10.04% 10.10% 8.89% 0.72% 1.01% 12%68

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BondFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension FundAccruedInterest465 - - 221,481 10,216 - - - 72,837Cash and bank balance1,515 10,522 231,730 610,131 31,023 71 9 5 147,442Dividend Receivable- 62 1,125 - - - - - -Receivables for Sale of Investments- - - 7,298 266 - - - -Unit Collection A/c- - - - - - - - -Other Current Assets (For Investments) :- - - 11,273 71 - - - -Application Money- - - - - - - - -Total1,980 10,584 232,855 850,183 41,576 71 9 5 220,279Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Bond Capital Capital Capital Capital Capital Cash Cash Cash PlusPension Guarantee Guarantee Guarantee Shield Shield Fund Plus PensionFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II Fund FundAccruedInterest 10,695 2,587 152 406 19,480 3,396 7,162 8,627 676Cash and bank balance35,268 5 29 16 72,222 84,278 5,241 10,644 266Dividend Receivable- 3 - 3 - - - - -Receivables for Sale of Investments- 20 2 17 - - - - -Unit Collection A/c- - - - - - - - -Other Current Assets (For Investments) :- - - - - - - - -Application Money- - - - - - - - -Total45,963 2,615 183 442 91,702 87,674 12,403 19,271 94269

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAccruedInterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAccruedInterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotal(Amount in Rs. '000)DebtDebt Debt Plus Equity Equity Equity Equity Equity EquityFund Plus Pension Fund Gain Growth Growth Index IndexFund Fund Fund Fund Pension Fund Fund Fund - II37,128 36,835 4,799 - - 5,410 - - -11,746 54,343 15,458 29,211 75,597 1,600,797 77,507 18,376 1,776,636- - - 580 - 5,232 226 316 4,537- - - 3,462 8,554 844,020 - 1,891 28,805- - - - - - - - -- - - - 2,289 146,436 3,858 - 92,079- - - - - - - - -48,874 91,178 20,257 33,253 86,440 2,601,895 81,591 20,583 1,902,057(Amount in Rs. '000)Equity Equity Index Equity Equity Equity Equity Equity Plus Group GroupIndex Pension Midcap Midcap Midcap Plus Pension Debt LiquidPension Fund Fund - II Fund Pension Fund Plus Fund Fund Fund Fund Fund- - - - - 614 - 26,165 -- 133,329 18,369 - 27,860 86,070 8,968 275,583 799,11124 302 329 36 563 - - - -143 1,890 - - - 12,801 868 - -- - - - - - - - -- 7,037 - - - 3,426 233 - -- - - - - - - - -167 142,558 18,698 36 28,423 102,911 10,069 301,748 799,11170

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAccruedInterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAccruedInterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotal(Amount in Rs. '000)Group Short Life Long Liquid Liquid Premier Premier Premier Premier PremierTerm Debt Gain Pension Fund Balanced Bond Debt Equity Equity GainFund Fund Fund Fund Fund Fund Fund Fund531 4,144 97 4,204 - 8,099 4,191 - 85810,018 1,192 2,648 19,456 - 11,925 123 174 6,238- - - - - - - 59 -- - - - - - - 352 7,323- - - - - - - - -- - - - - - - - 165- - - - - - - - -10,549 5,336 2,745 23,660 - 20,024 4,314 585 14,584(Amount in Rs. '000)Premier Premier Pure Pure Pure Secure Stable TotalEquity Growth Equity Index Equity Stock Stock Fund FundFund Fund Fund Fund Pension Fund- 68 - - - 10,669 5,577 507,56914,580 13,362 16,331 66,169 649 11,408 195 6,423,846205 143 759 1,535 8 - - 16,047- 856 - 970 - - - 919,538- - - - - - - -- - 12,864 27,136 197 - - 307,064- - - - - - - -14,785 14,429 29,954 95,810 854 22,077 5,772 8,174,06471

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotal(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BondFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension Fund- 6,076 114,354 50,793 1,010 - - - -34 259 4,704 18,678 709 - - - 2,450- - - - - - - - -34 6,335 119,058 69,471 1,719 - - - 2,450(Amount in Rs. '000)Bond Capital Capital Capital Capital Capital Cash Cash CashPension Guarantee Guarantee Guarantee Shield Shield Fund Plus PlusFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II Fund Pension Fund- 1 - - - - - - -269 130 9 54 1,740 1,009 2,346 962 64- - - - - - - - -269 131 9 54 1,740 1,009 2,346 962 64(Amount in Rs. '000)DebtDebt Debt Equity Equity Equity Equity Equity EquityFund Plus Plus Fund Gain Growth Growth Index IndexFund Pension Fund Fund Fund Pension Fund Fund Fund - II- - - 13,763 33,070 1,223,789 21,520 7,629 978,4002,778 959 97 6,293 17,088 53,697 2,304 1,524 28,103- - - - - - - - -2,778 959 97 20,056 50,158 1,277,486 23,824 9,153 1,006,50372

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotal(Amount in Rs. '000)Equity Equity Equity Equity Equity Equity Equity Group GroupIndex Index Pension Midcap Midcap Midcap Plus Plus Debt LiquidPension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund Fund Fund802 63,108 - - - 49,489 3,358 - -616 1,866 2,424 1,203 1,990 14,025 956 833 61- - - - - - - - -1,418 64,974 2,424 1,203 1,990 63,514 4,314 833 61(Amount in Rs. '000)Group Life Long Liquid Liquid Premier Premier Premier Premier PremierShort Term Gain Pension Fund Balanced Bond Debt Equity EquityDebt Fund Fund Fund Fund Fund Fund Fund Gain Fund- - - - - - - 5 2,4048 353 40 603 - 623 279 643 1,024- - - - - - - - -8 353 40 603 - 623 279 648 3,428(Amount in Rs. '000)Premier Premier Pure Pure Pure Secure Stable TotalEquity Equity Equity Stock Stock Fund FundGrowth Fund Index Fund Fund Fund Pension Fund- 2,915 55,271 116,772 892 - - 2,745,4213,162 1,904 880 2,101 11 471 331 182,667- - - - - - - -3,162 4,819 56,151 118,873 903 471 331 2,928,08873

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotal(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BondFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension Fund- 2,238 138,126 880,968 13,132 - - - 106,285- - - - - - - - -- - - - - - - - 10- 83 105,768 266,848 2,217 - - - 70,532- 7 14,324 18,656 111 - - - 23,887- - - - - - - - -- 16 213 948 32 - - - 11832 290 27,488 339,653 2,581 - - - 40,23132 2,634 285,918 1,507,073 18,073 - - - 241,063(Amount in Rs. '000)Bond Capital Capital Capital Capital Capital Cash Cash CashPension Guarantee Guarantee Guarantee Shield Shield Fund Plus PlusFund Fund- 2012 Fund- 2014 Fund- 2017 Fund- I Fund- II Fund Pension Fund1,963 2,300 150 1,089 - - 1 11,210 4,248- - - - - - - - -4 - - - - - 175 845 6159 1,774 140 744 - - 33,931 84,188 1,0714 - - - - - 13,678 3,188 97- - - - - - - - -9 9 1 4 - - 123 314 91,009 279 20 120 508 156 4,140 2,258 1173,049 4,362 311 1,958 508 156 52,048 102,003 5,60374

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotal(Amount in Rs. '000)DebtDebt Debt Equity Equity Equity Equity Equity EquityFund Plus Plus Fund Gain Growth Growth Index IndexFund Pension Fund Fund Fund Pension Fund Fund Fund - II- 15,369 2,326 - - 1,664,593 20,202 31,352 1,551,312- - - - - - - - -36 206 44 56 185 4 2 318 835,631 14,128 1,476 96,082 225,493 1,157,353 784 23,572 858,7009,889 3,607 193 25,180 32,085 154,122 35 5,694 130,125- - - - - - - - -285 302 11 1,066 2,012 2,417 124 504 1,5063,858 3,555 185 9,963 23,442 392,524 3,014 5,058 547,63449,699 37,166 4,235 132,347 283,217 3,371,013 24,162 66,498 3,089,285(Amount in Rs. '000)Equity Equity Index Equity Equity Equity Equity Equity Group GroupIndex Pension Midcap Midcap Midcap Plus Plus Debt LiquidPension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund Fund Fund2,720 26,520 - - 16,042 122,616 13,855 - -- - - - - - - - -15 2 27 2 90 967 125 - -1,392 2,015 33,759 349 16,035 199,382 3,881 - -266 96 7,063 53 5,409 28,946 571 - -- - - - - - - - -15 119 288 11 479 3,056 143 - -206 4,776 3,659 112 3,913 28,492 987 507 294,613 33,528 44,796 527 41,969 383,459 19,562 507 2975

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeService TaxTotal(Amount in Rs. '000)Group Life Long Liquid Liquid Premier Premier Premier Premier PremierShort Term Gain Pension Fund Balanced Bond Debt Equity EquityDebt Fund Fund Fund Fund Fund Fund Fund Gain Fund- - 1,030 30,108 - 1,954 4,139 9,781 15,538- - - - - - - - -- - - 2 - 3 18 4 8- 4,522 7 20,270 - 1,353 3,273 4,499 6,408- - - 7,014 - - - - -- - - - - - - - -- 16 2 34 - 15 11 122 921 493 75 22,530 - 669 325 863 1,4241 5,031 1,114 79,957 - 3,994 7,766 15,270 23,471(Amount in Rs. '000)Premier Premier Pure Pure Pure Secure Stable TotalEquity Growth Equity Equity Stock Stock Fund FundFund Index Fund Fund Fund Pension Fund21,457 9,435 77,826 185,033 38 - - 4,984,956- - - - - - - -1 1 - - - - - 3,21915,116 6,530 31,853 67,718 3 - - 3,398,939- - 3,168 9,042 - - - 496,510- - - - - - - -148 83 143 59 - - - 14,8603,687 2,085 5,017 29,306 22 271 205 1,517,77040,409 18,135 118,007 291,158 63 271 205 10,416,25476

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the yearSchedule Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced BalancedFund Pension Fund Fund Allocation Allocation Fund Plus Fund Plus PensionFund Pension Fund Fund2,632 27 682 63,816 614 - - -130 1,431 14,205 6,543 22 - - -11,429 29,489 230,109 19,357 5 - - -(163) (16) (221) (4,580) - - - -(1,078) (10,274) (99,370) (521,500) (2,180) - - -1,019 736 10,212 11,669 98 - - -13,969 21,393 155,617 (424,695) (1,441) - - -- - - - - - - -853 2,285 24,749 23,419 186 - - -- 923 174,155 250,518 272 - - -853 3,208 198,904 273,937 458 - - -13,116 18,185 (43,287) (698,632) (1,899) - - -4,207 1,692 (8,220) - - - - -17,323 19,877 (51,507) (698,632) (1,899) - - -Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSPolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalAPPLICATION OF FUNDSInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Schedule Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced BalancedFund Pension Fund Fund Allocation Allocation Fund Plus Fund Plus PensionFund Pension Fund Fund50,103 183,700 2,563,250 10,842,776 288,258 1,503,103 923,231 119,98017,323 19,877 (51,507) (698,632) (1,899) - - -67,426 203,577 2,511,743 10,144,144 286,359 1,503,103 923,231 119,98064,031 196,587 2,341,321 8,887,638 200,248 1,503,032 923,222 119,9783,461 15,987 211,337 1,489,418 93,838 71 9 266 8,997 40,915 232,912 7,727 - - -3,395 6,990 170,422 1,256,506 86,111 71 9 267,426 203,577 2,511,743 10,144,144 286,359 1,503,103 923,231 119,98067,426 203,577 2,511,743 10,144,144 286,359 1,503,103 923,231 119,9804,635 13,451 166,930 1,016,869 29,724 94,731 51,924 7,10914.547 15.135 15.047 9.976 9.634 15.867 17.780 16.877*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.77

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsScheduleBalancer Balancer Bond Bond Capital Capital Capital CashFund Pension Fund Pension Guarantee Guarantee Guarantee FundFund Fund Fund- 2012 Fund- 2014 Fund- 2017INCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year- - 56,954 4,933 6,245 424 2,256 17,967- - - - 269 24 223 -- - 4,835 818 1,382 89 763 8,400- - 525 335 (311) (80) (3) (918)- - (3,923) 87 2,635 422 3,230 30- - 16,089 1,429 234 15 305 80,471- - 74,480 7,602 10,454 894 6,774 105,950- - - - - - - 12,533- - 7,317 638 1,334 95 654 9,971- - 135,338 901 2,913 206 1,316 23,554- - 142,655 1,539 4,247 301 1,970 46,058- - (68,175) 6,063 6,207 593 4,804 59,892- - 5,074 670 (96) (79) (200) 66,437- - (63,101) 6,733 6,111 514 4,604 126,329Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Balancer Balancer Bond Bond Capital Capital Capital CashFund Pension Fund Pension Guarantee Guarantee Guarantee FundFund Fund Fund- 2012 Fund- 2014 Fund- 2017- - 1,253,818 91,745 111,220 7,796 50,383 856,359- - (63,101) 6,733 6,111 514 4,604 126,329- - 1,190,717 98,478 117,331 8,310 54,987 982,688- - 1,083,650 92,157 114,922 8,126 54,007 956,968- - 115,049 11,471 2,534 193 1,039 27,578- - 7,982 5,150 125 9 59 1,858- - 107,067 6,321 2,409 184 980 25,720- - 1,190,717 98,478 117,331 8,310 54,987 982,688- - 1,190,717 98,478 117,331 8,310 54,987 982,688- - 104,380 8,529 10,687 752 4,858 80,744- - 11.408 11.546 10.979 11.051 11.319 12.170*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.78

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsScheduleCash Plus Cash Plus Debt Debt Plus Debt Plus Equity Equity EquityFund Pension Fund Fund Pension Fund Gain GrowthFund Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year35,432 3,578 94,540 107,270 8,929 363 4,558 8,333- - - - - 48,982 65,877 123,23811,559 2,096 2,671 5,981 788 501,265 948,215 1,623,882(1,368) (160) (10,749) (5,525) (162) (10) (1,192) (2,849)7 - 23,790 13,783 1,010 428,883 (86,527) (1,374,380)150,637 12,109 20,586 31,880 2,218 1,781 35,766 108,146196,267 17,623 130,838 153,389 12,783 981,264 966,697 486,370- - 15,182 - - 60,602 108,475 -13,086 1,091 12,076 10,242 849 48,255 129,715 297,70420,177 1,412 19,184 23,445 2,008 53,431 94,516 1,869,88633,263 2,503 46,442 33,687 2,857 162,288 332,706 2,167,590163,004 15,120 84,396 119,702 9,926 818,976 633,991 (1,681,220)220,082 10,415 49,216 59,078 7,208 1,264,084 1,243,295 (79,681)383,086 25,535 133,612 178,780 17,134 2,083,060 1,877,286 (1,760,901)Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Cash Plus Cash Plus Debt Debt Plus Debt Plus Equity Equity EquityFund Pension Fund Fund Pension Fund Gain GrowthFund Fund Fund Fund1,376,695 86,216 407,535 1,111,369 65,700 1,851,492 7,249,011 28,020,683383,086 25,535 133,612 178,780 17,134 2,083,060 1,877,286 (1,760,901)1,759,781 111,751 541,147 1,290,149 82,834 3,934,552 9,126,297 26,259,7821,711,483 107,386 482,003 1,143,620 76,268 3,868,996 8,902,318 24,507,70249,321 4,431 69,521 157,633 6,647 82,114 244,851 2,036,3661,023 66 10,377 11,104 81 16,558 20,872 284,28648,298 4,365 59,144 146,529 6,566 65,556 223,979 1,752,0801,759,781 111,751 541,147 1,290,149 82,834 3,934,552 9,126,297 26,259,7821,759,781 111,751 541,147 1,290,149 82,834 3,934,552 9,126,297 26,259,782137,476 8,781 46,916 106,620 6,672 177,975 332,307 1,944,71312.801 12.726 11.534 12.100 12.415 22.107 27.463 13.503*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.79

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsScheduleEquity GrowthEquity Equity Equity Index Equity Index Equity Equity Midcap Equity MidcapPension Index Index Pension Pension Midcap Pension PlusFund Fund Fund - II Fund Fund - II Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year279 - 265 - 2 151 2 1,9337,106 23,320 60,595 1,981 4,205 14,667 1,847 26,318171,375 235,418 123,354 30,536 17,946 251,463 37,922 458,734(263) (7) (132) 6 12 (215) 4 (172)(175,291) 172,949 (455,741) 6,092 (78,811) (83,303) (10,195) (109,652)5,917 1,001 8,332 86 720 7,433 934 11,4219,123 432,681 (263,327) 38,701 (55,926) 190,196 30,514 388,582- - - - - 16,274 - -17,734 23,282 83,775 1,962 5,930 19,453 2,342 33,33410,876 37,234 877,858 1,963 7,374 17,956 1,105 24,35828,610 60,516 961,633 3,925 13,304 53,683 3,447 57,692(19,487) 372,165 (1,224,960) 34,776 (69,230) 136,513 27,067 330,890(893) 439,152 (7,502) 47,323 3,287 244,433 34,949 520,320(20,380) 811,317 (1,232,462) 82,099 (65,943) 380,946 62,016 851,210Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Equity GrowthEquity Equity Equity Index Equity Index Equity Equity Midcap Equity MidcapPension Index Index Pension Pension Midcap Pension PlusFund Fund Fund - II Fund Fund - II Fund Fund Fund1,499,414 1,217,355 16,750,358 54,786 1,366,634 973,788 87,721 1,364,051(20,380) 811,317 (1,232,462) 82,099 (65,943) 380,946 62,016 851,2101,479,034 2,028,672 15,517,896 136,885 1,300,691 1,354,734 149,737 2,215,2611,351,473 1,961,908 13,911,435 134,138 1,130,984 1,330,028 142,176 2,133,680129,501 76,913 1,913,486 3,254 201,683 56,192 11,192 106,1311,940 10,149 307,025 507 31,976 31,486 3,631 24,550127,561 66,764 1,606,461 2,747 169,707 24,706 7,561 81,5811,479,034 2,028,672 15,517,896 136,885 1,300,691 1,354,734 149,737 2,215,2611,479,034 2,028,672 15,517,896 136,885 1,300,691 1,354,734 149,737 2,215,261111,421 72,515 1,022,062 5,564 87,344 64,292 6,345 99,50013.274 27.976 15.183 24.601 14.892 21.072 23.599 22.264*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.80

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsScheduleEquityEquity Group Life Liquid Liquid Premier PremierPlus Plus Debt Long Pension Fund Balanced BalancerFund Pension Fund Fund Gain Fund Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year6,870 525 7 10,093 577 4,158 - -104,498 7,875 - - - - - -1,754,944 163,180 14 831 147 1,163 - -(1,818) (153) - (144) (25) (169) - -(379,292) (39,791) - 514 - - - -54,016 3,165 - 2,779 1,854 16,190 - -1,539,218 134,801 21 14,073 2,553 21,342 - -- - - 1,723 - - - -212,979 15,276 21 1,379 233 1,956 - -136,331 7,398 - 2,098 1,228 35,540 - -349,310 22,674 21 5,200 1,461 37,496 - -1,189,908 112,127 - 8,873 1,092 (16,154) - -2,231,992 189,942 - 3,232 328 1,832 - -3,421,900 302,069 - 12,105 1,420 (14,322) - -Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *EquityEquity Group Life Liquid Liquid Premier PremierPlus Plus Debt Long Pension Fund Balanced BalancerFund Pension Fund Fund Gain Fund Fund Fund Fund11,072,463 675,071 46,157 167,028 26,486 344,378 77,114 -3,421,900 302,069 - 12,105 1,420 (14,322) - -14,494,363 977,140 46,157 179,133 27,906 330,056 77,114 -14,051,881 966,982 - 167,699 24,894 308,451 77,114 -480,073 11,431 46,157 11,757 3,031 21,845 - -37,591 1,273 - 323 19 240 - -442,482 10,158 46,157 11,434 3,012 21,605 - -14,494,363 977,140 46,157 179,133 27,906 330,056 77,114 -14,494,363 977,140 46,157 179,133 27,906 330,056 77,114 -512,035 39,178 4,616 16,692 2,421 28,547 5,799 -28.307 24.941 9.999 10.732 11.527 11.562 13.298 -*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.81

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsSchedulePremier Premier Premier Premier Premier Premier Pure PureBond Debt Equity Equity Gain Equity Growth Equity Index Equity StockFund Fund Fund Fund Fund Fund Fund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year12,844 18,222 - 1,187 582 - - -- - 6,128 7,890 13,086 6,305 6,735 3,0171,540 2,169 95,626 170,635 273,701 29,830 75,947 21,473436 (284) 4 (135) (313) (4) (50) (42)492 1,678 30,164 (57,657) (190,968) 22,798 6,205 (7,008)3,530 5,303 184 3,036 7,932 477 3,887 2,52318,842 27,088 132,106 124,956 104,020 59,406 92,724 19,963- - - - - - - -4,926 5,624 13,458 22,118 47,779 17,970 8,387 5,4822,194 5,440 12,416 20,548 21,036 7,479 55,070 157,2907,120 11,064 25,874 42,666 68,815 25,449 63,457 162,77211,722 16,024 106,232 82,290 35,205 33,957 29,267 (142,809)1,357 9,080 81,177 94,057 25,844 11,342 19,514 22513,079 25,104 187,409 176,347 61,049 45,299 48,781 (142,584)Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsSOURCES OF FUNDSAPPLICATION OF FUNDSSchedulePolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *Premier Premier Premier Premier Premier Premier Pure PureBond Debt Equity Equity Gain Equity Growth Equity Index Equity StockFund Fund Fund Fund Fund Fund Fund Fund163,761 134,655 315,804 647,812 1,852,476 941,738 614,405 807,70913,079 25,104 187,409 176,347 61,049 45,299 48,781 (142,584)176,840 159,759 503,213 824,159 1,913,525 987,037 663,186 665,125169,260 154,350 503,655 837,409 1,911,964 941,037 629,414 623,7627,982 6,646 614 680 54,043 58,423 35,535 44,718402 1,237 1,056 13,930 52,482 12,423 1,763 3,3557,580 5,409 (442) (13,250) 1,561 46,000 33,772 41,363176,840 159,759 503,213 824,159 1,913,525 987,037 663,186 665,125176,840 159,759 503,213 824,159 1,913,525 987,037 663,186 665,12515,941 13,968 30,991 56,970 145,581 66,708 45,632 47,15011.093 11.438 16.237 14.467 13.144 14.796 14.533 14.107*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.82

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24Form A-RA (UL)stFund Revenue Account for the year ended 31 March 2008(Amount in Rs. '000)ParticularsScheduleSecure Stable TotalFund FundINCOME FROM INVESTMENTSInterest IncomeDividend IncomeProfit/(Loss) excluding inter schemeProfit/(Loss) on inter fund transfer/sale of investmentUnrealised Gain/(Loss)Miscellaneous IncomeTotal Income (A)EXPENSESFund Administration ExpensesFund Management ExpensesOther charges F -5Total Expenses (B)Net Income/(Loss) for the Year (A-B)Add: Revenue Account at the beginning of the yearFund Revenue Account at the end of the year1,778 35,668 514,6964 549 557,070234 46,587 7,367,902(406) (3) (31,320)(1,376) (34,893) (3,008,441)168 5,090 631,378402 52,998 6,031,285- - 214,789300 6,676 1,136,895- - 4,116,947300 6,676 5,468,631102 46,322 562,654458 11,462 6,806,093560 57,784 7,368,747Appendix II Refer Schedule 16 Note 24Form A-BS (UL)stFund Balance Sheet as at 31 March 2008(Amount in Rs. '000)ParticularsScheduleSecure Stable TotalFund FundSOURCES OF FUNDSPolicy Holder's Funds:Policy Holders Contribution F -1Revenue AccountTotalAPPLICATION OF FUNDSInvestments F -2Current Assets F -3Less : Current Liabilities and Provisions F -4Net Current AssetsTotal(a) Net Assets as per Balance Sheet (Rs. in thousands)(b) Number of Units Outstanding (in thousands)Net Asset Value per unit (a)/(b) (Rs.) *341,730 1,615,633 102,172,950560 57,784 7,368,747342,290 1,673,417 109,541,697173,178 1,683,405 102,665,940189,578 44,310 8,138,04620,466 54,298 1,262,289169,112 (9,988) 6,875,757342,290 1,673,417 109,541,697342,290 1,673,41726,166 128,39613.081 13.033*Note: The Net Asset Value per unit calculated above is before appropriation/ ex propriation charge.83

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2008Particulars(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BalancerFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance63,872 73,780 734,229 - - 1,453,287 1,025,949 100,613 35,0549,957 160,613 2,139,363 11,181,691 296,392 880,136 902,016 67,258 -23,726 50,693 310,342 338,915 8,134 830,320 1,004,734 47,891 35,05450,103 183,700 2,563,250 10,842,776 288,258 1,503,103 923,231 119,980 -Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2008Particulars(Amount in Rs. '000)BalancerBond Bond Capital Capital Capital Cash Cash CashPension Fund Pension Guarantee Guarantee Guarantee Fund Plus PlusFund Fund Fund- 2012 Fund- 2014 Fund- 2017 Fund Pension FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance6,586 401,846 34,571 83,047 5,829 40,789 871,587 1,546,672 116,682- 1,620,749 241,944 32,647 2,279 11,440 1,123,205 2,811,423 203,6066,586 768,777 184,770 4,474 312 1,846 1,138,433 2,981,400 234,072- 1,253,818 91,745 111,220 7,796 50,383 856,359 1,376,695 86,216Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2008Particulars(Amount in Rs. '000)DebtDebt Debt Plus Equity Equity Equity Equity Growth Equity EquityFund Plus Pension Fund Gain Growth Pension Index IndexFund Fund Fund Fund Fund Fund Fund - IIOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance414,657 611,762 52,058 1,786,198 5,020,355 9,408,208 642,292 890,746 2,694,186594,019 2,050,452 95,359 1,796,614 5,258,235 22,284,570 1,232,553 1,117,485 15,352,662601,141 1,550,845 81,717 1,731,320 3,029,579 3,672,095 375,431 790,876 1,296,490407,535 1,111,369 65,700 1,851,492 7,249,011 28,020,683 1,499,414 1,217,355 16,750,35884

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Equity Index Equity Index Equity Equity Midcap Equity Midcap Equity Equity Plus Group Life LongPension Pension Midcap Pension Plus Plus Pension Debt GainFund Fund - II Fund Fund Fund Fund Fund Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance71,479 170,124 800,641 93,463 1,370,130 9,294,510 741,150 - 107,33852,520 1,353,020 771,464 104,532 1,174,204 9,343,712 440,043 46,157 120,11569,213 156,510 598,317 110,274 1,180,283 7,565,759 506,122 - 60,42554,786 1,366,634 973,788 87,721 1,364,051 11,072,463 675,071 46,157 167,028Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)LiquidLiquid Premier Premier Premier Premier Premier Premier PremierPension Fund Balanced Balancer Bond Debt Equity Equity Equity GrowthFund Fund Fund Fund Fund Fund Gain Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance11,118 105,952 85,702 18,894 97,903 157,545 430,308 873,552 1,223,23252,004 386,247 35,075 - 304,524 402,313 150,344 277,953 877,41436,636 147,821 43,663 18,894 238,666 425,203 264,848 503,693 248,17026,486 344,378 77,114 - 163,761 134,655 315,804 647,812 1,852,476Appendix II Refer Schedule 16 Note 24SCHEDULE F1 : POLICYHOLDERS' CONTRIBUTIONSchedules to Fund Revenue AccountstAs at 31 March 2009Particulars(Amount in Rs. '000)Premier Pure Pure Secure Stable TotalEquity Index Equity Stock Fund FundFund Fund FundOpening BalanceAdd : Addition during the yearLess : Deduction during the yearClosing Balance366,910 371,812 127,735 5,846 422,109 45,062,308673,399 400,551 785,641 337,747 1,246,571 90,802,21898,571 157,958 105,667 1,863 53,047 33,691,576941,738 614,405 807,709 341,730 1,615,633 102,172,95085

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2008Particulars(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Bond Bond Capital Capital CapitalFund Pension Fund Allocation Allocation Fund Pension Guarantee Guarantee GuaranteeFund Fund Pension Fund Fund Fund- 2012 Fund- 2014 Fund- 2017APPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundBank Fixed Deposits947 - - 211,773 7,982 51,724 4,950 33,994 1,818 12,79511,548 5 23 1,034,054 14,121 360,502 21,380 47,387 1,132 3,2105,068 - - 2,006,876 45,400 418,853 43,653 3,312 2,480 13,35723,299 148,353 1,722,045 3,805,051 88,253 - - 23,082 1,951 19,2268,897 36,037 358,225 933,495 31,353 167,121 9,674 642 196 -- - - - - - - - - -11,200 - - 23,500 - 85,450 12,500 - - -Total60,959 184,395 2,080,293 8,014,749 187,109 1,083,650 92,157 108,417 7,577 48,588OTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual Fund- - - - - - - - - -- - - - - - - - - -3,072 12,192 183,967 583,180 13,139 - - 6,505 549 5,419- - - - - - - - - -- - 77,061 289,709 - - - - - -Total3,072 12,192 261,028 872,889 13,139 - - 6,505 549 5,419Grand Total64,031 196,587 2,341,321 8,887,638 200,248 1,083,650 92,157 114,922 8,126 54,007% of Approved to Total% of Other than Approved to Total95.20% 93.80% 88.85% 90.18% 93.44% 100.00% 100.00% 94.34% 93.24% 89.97%4.80% 6.20% 11.15% 9.82% 6.56% 0.00% 0.00% 5.66% 6.76% 10.03%86

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundBank Fixed DepositsTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)CashCash Cash Debt Debt Debt Equity Equity Equity EquityFund Plus Plus Fund Plus Plus Fund Gain Growth GrowthFund Pension Fund Fund Pension Fund Fund Fund Pension Fund- - - 23,937 76,894 14,148 - - 19,300 -- - - 258,766 466,974 27,914 - - - -- - - 573,889 543,542 52,625 - - - -- - - - - - 3,658,565 7,408,511 17,263,564 999,000713,418 1,327,583 55,087 161,537 251,116 16,923 17,379 431,035 4,107,903 195,615- - - - - - - - - -243,550 383,900 52,300 128,950 229,200 22,950 - - - -956,968 1,711,483 107,387 1,147,079 1,567,726 134,560 3,675,944 7,839,546 21,390,767 1,194,615- - - - - - - - - -- - - - - - - - - -- - - - - - 1,031,008 1,026,748 2,843,179 146,851- - - - - - - - - -- - - - - - - 36,024 273,756 10,007- - - - - - 1,031,008 1,062,772 3,116,935 156,858956,968 1,711,483 107,387 1,147,079 1,567,726 134,560 4,706,952 8,902,318 24,507,702 1,351,473100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 78.10% 88.06% 87.28% 88.39%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 21.90% 11.94% 12.72% 11.61%87

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2008(Amount in Rs. '000)Particulars Equity Equity Equity Equity Index Equity Equity Equity Equity Equity GroupIndex Index Index Pension Midcap Midcap Midcap Plus Plus DebtFund Fund - II Pension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund FundAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundBank Fixed Deposits- - - - - - - - - -- - - - 17 3 29 - - -- - - - - - - - - -1,909,657 10,597,190 152,162 856,043 1,005,241 115,547 1,583,731 11,898,094 774,145 -13,079 323,424 775 33,277 171,529 16,040 270,434 253,961 82,785 -- - - - - - - - - -- - - - - - - - - -Total1,922,736 10,920,614 152,937 889,320 1,176,787 131,590 1,854,194 12,152,055 856,930 -OTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual Fund- - - - - - - - - -- - - - - - - - - -538,287 2,990,821 42,886 241,664 131,224 10,586 210,431 1,589,415 110,052 -- - - - - - - - - -- - - - 22,017 - 69,055 310,411 - -Total538,287 2,990,821 42,886 241,664 153,241 10,586 279,486 1,899,826 110,052 -Grand Total2,461,023 13,911,435 195,823 1,130,984 1,330,028 142,176 2,133,680 14,051,881 966,982 -% of Approved to Total% of Other than Approved to Total78.13% 78.50% 78.10% 78.63% 88.48% 92.55% 86.90% 86.48% 88.62% 0.00%21.87% 21.50% 21.90% 21.37% 11.52% 7.45% 13.10% 13.52% 11.38% 0.00%88

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2008(Amount in Rs. '000)Particulars Life Liquid Liquid Premier Premier Premier Premier Premier Premier PureLong Pension Fund Bond Debt Equity Equity Equity Equity EquityGain Fund Fund Fund Fund Gain Fund Growth Fund Index Fund FundAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundBank Fixed Deposits13,846 - - 6,191 16,516 - 6,700 - - -56,846 - - 78,937 87,941 - - - - -64,258 - - 50,896 45,091 - - - - -- - - - - 421,765 712,883 1,597,406 724,454 508,48718,049 16,194 249,301 22,536 21,460 1,145 26,000 168,933 12,234 54,335- - - - - - - - - -14,700 8,700 59,150 10,700 22,350 - - - - -Total167,699 24,894 308,451 169,260 193,358 422,910 745,583 1,766,339 736,688 562,822OTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual Fund- - - - - - - - - -- - - - - - - - - -- - - - - 118,852 91,826 141,822 204,349 66,592- - - - - - - - - -- - - - - - - 3,803 - -Total- - - - - 118,852 91,826 145,625 204,349 66,592Grand Total167,699 24,894 308,451 169,260 193,358 541,762 837,409 1,911,964 941,037 629,414% of Approved to Total% of Other than Approved to Total100.00% 100.00% 100.00% 100.00% 100.00% 78.06% 89.03% 92.38% 78.28% 89.42%0.00% 0.00% 0.00% 0.00% 0.00% 21.94% 10.97% 7.62% 21.72% 10.58%89

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F2 : INVESTMENTSSchedules to Fund Revenue AccountstAs at 31 March 2009ParticularsAPPROVED INVESTMENTSGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundBank Fixed DepositsTotalOTHER INVESTMENTSCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundTotalGrand Total% of Approved to Total% of Other than Approved to Total(Amount in Rs. '000)Pure Secure Stable TotalStock Fund FundFund- 90,633 124,470 718,618- 14,132 229,271 2,714,192- 33,313 478,812 4,381,425508,435 4,849 181,157 68,712,14649,833 18,320 236,976 10,883,856- - - -- 11,500 379,200 1,699,800558,268 172,747 1,629,886 89,110,037- - - -- - - -65,494 431 53,519 12,464,060- - - -- - - 1,091,84365,494 431 53,519 13,555,903623,762 173,178 1,683,405 102,665,94089.50% 99.75% 96.82% 86.80%10.50% 0.25% 3.18% 13.20%90

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotal(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BalancerFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension Fund1,694 - - 97,368 2,235 - - - -1,767 13,853 194,664 1,373,292 91,588 71 9 2 -- 188 1,537 2,425 15 - - - -- 1,946 15,136 16,333 - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -3,461 15,987 211,337 1,489,418 93,838 71 9 2 -(Amount in Rs. '000)BalancerBond Bond Capital Capital Capital Cash Cash CashPension Fund Pension Guarantee Guarantee Guarantee Fund Plus PlusFund Fund Fund- 2012 Fund- 2014 Fund- 2017 Fund Pension Fund- 30,706 2,713 2,464 143 405 7,238 849 3,586- 72,078 8,758 61 49 627 20,340 48,472 845- - - 9 1 7 - - -- 12,265 - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- 115,049 11,471 2,534 193 1,039 27,578 49,321 4,43191

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotal(Amount in Rs. '000)DebtDebt Debt Equity Equity Equity Equity Equity EquityFund Plus Plus Fund Gain Growth Growth Index IndexFund Pension Fund Fund Fund Pension Fund Fund Fund - II39,212 46,915 4,572 - - 1,239 - - -22,132 100,497 2,075 80,736 241,016 2,032,570 129,501 76,201 1,910,093- - - 1,378 - - - 712 3,3938,177 10,221 - - 3,835 2,557 - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -69,521 157,633 6,647 82,114 244,851 2,036,366 129,501 76,913 1,913,486(Amount in Rs. '000)Equity Equity Equity Equity Equity Equity Equity Group LifeIndex Index Pension Midcap Midcap Midcap Plus Plus Debt LongPension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund Fund Gain Fund- - - - - - - - 5,7873,197 201,418 32,386 9,067 74,553 473,492 11,431 46,157 5,97057 265 501 179 921 - - - -- - 23,305 1,946 30,657 6,581 - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -3,254 201,683 56,192 11,192 106,131 480,073 11,431 46,157 11,75792

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F3 : CURRENT ASSETSSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsAccured InterestCash and bank balanceDividend ReceivableReceivables for Sale of InvestmentsUnit Collection A/cOther Current Assets (For Investments) :Application MoneyTotal(Amount in Rs. '000)Liquid Liquid Premier Premier Premier Premier Premier Premier PremierPension Fund Balanced Balancer Bond Debt Equity Equity EquityFund Fund Fund Fund Fund Fund Gain Fund Growth Fund855 4,248 - - 5,520 6,646 - 430 -2,176 17,597 - - 2,462 - 450 250 54,043- - - - - - 164 - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -3,031 21,845 - - 7,982 6,646 614 680 54,043(Amount in Rs. '000)PremierPure Pure Secure Stable TotalEquity Equity Stock Fund FundIndex Fund Fund Fund- - - 3,811 43,520 312,15658,172 30,657 38,151 165,325 790 7,649,041251 481 406 - - 12,890- 4,397 6,161 20,442 - 163,959- - - - - -- - - - - -- - - - - -58,423 35,535 44,718 189,578 44,310 8,138,04693

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotal(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Balanced Balanced Balanced BalancerFund Pension Fund Allocation Allocation Fund Plus Plus FundFund Fund Pension Fund Fund Pension Fund- 8,729 37,720 224,567 7,581 - - - -66 268 3,195 8,345 146 - - - -- - - - - - - - -66 8,997 40,915 232,912 7,727 - - - -(Amount in Rs. '000)BalancerBond Bond Capital Capital Capital Cash Cash CashPension Fund Pension Guarantee Guarantee Guarantee Fund Plus PlusFund Fund Fund- 2012 Fund- 2014 Fund- 2017 Fund Pension Fund- 7,120 5,086 - - - - - -- 862 64 125 9 59 1,858 1,023 66- - - - - - - - -- 7,982 5,150 125 9 59 1,858 1,023 66(Amount in Rs. '000)DebtDebt Debt Equity Equity Equity Equity Equity EquityFund Plus Plus Fund Gain Growth Growth Index IndexFund Pension Fund Fund Fund Pension Fund Fund Fund - II8,137 10,171 - 7,523 - 249,932 - 8,026 293,8172,240 933 81 9,035 20,872 34,354 1,940 2,123 13,208- - - - - - - - -10,377 11,104 81 16,558 20,872 284,286 1,940 10,149 307,02594

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F4 : CURRENT LIABILITIESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPayable for purchase of InvestmentsOther Current Liabilities:Unit Payable A/cTotal(Amount in Rs. '000)Equity Equity Equity Equity Equity Equity Equity Group Life LongIndex Index Pension Midcap Midcap Midcap Plus Plus Debt GainPension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund Fund Fund341 30,928 28,413 3,446 21,836 19,488 - - -166 1,048 3,073 185 2,714 18,103 1,273 - 323- - - - - - - - -507 31,976 31,486 3,631 24,550 37,591 1,273 - 323(Amount in Rs. '000)Liquid Liquid Premier Premier Premier Premier Premier Premier PremierPension Fund Balanced Balancer Bond Debt Equity Equity EquityFund Fund Fund Fund Fund Fund Gain Fund Growth Fund- - - - - - - 12,277 48,14919 240 - - 402 1,237 1,056 1,653 4,333- - - - - - - - -19 240 - - 402 1,237 1,056 13,930 52,482(Amount in Rs. '000)Premier Pure Pure Secure Stable TotalEquity Equity Stock Fund FundIndex Fund Fund Fund10,348 983 2,458 20,343 53,457 1,120,8762,075 780 897 123 841 141,413- - - - - -12,423 1,763 3,355 20,466 54,298 1,262,28995

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeTotal(Amount in Rs. '000)Accelerated Acc Mid Cap Acc Mid Cap Asset Asset Bond Bond Capital CapitalFund Pension Fund Allocation Allocation Fund Pension Guarantee GuaranteeFund Fund Pension Fund Fund Fund- 2012 Fund- 2014- 897 86,755 186,999 - 64,016 879 1,602 104- - - - - - - - -- 1 2 - - 32 12 - -- 9 74,532 59,044 255 48,713 2 1,298 101- 1 12,684 4,475 17 22,490 - - -- - - - - - - - -- 15 182 - - 87 8 13 1- 923 174,155 250,518 272 135,338 901 2,913 206(Amount in Rs. '000)CapitalCash Cash Cash Debt Debt Debt Equity EquityGuarantee Fund Plus Plus Fund Plus Plus Fund GainFund- 2017 Fund Pension Fund Fund Pension Fund Fund759 - 4,263 712 - 6,799 962 - -- - - - - - - - -- 318 2,035 110 107 983 194 88 444551 15,940 11,172 348 14,418 12,827 545 38,890 70,879- 6,741 1,750 42 3,986 2,066 86 11,847 18,467- - - - - - - - -6 555 957 200 673 770 221 2,606 4,7261,316 23,554 20,177 1,412 19,184 23,445 2,008 53,431 94,51696

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix II Refer Schedule 16 Note 24Annual Report 2008-2009Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeTotalAppendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeTotal(Amount in Rs. '000)Equity Equity Equity Equity Equity Equity Equity Equity EquityGrowth Growth Index Index Index Index Pension Midcap Midcap MidcapFund Pension Fund Fund Fund - II Pension Fund Fund - II Fund Pension Fund Plus Fund978,013 10,648 13,995 500,668 1,069 7,119 - 668 7,134- - - - - - - - -16 6 609 21 41 5 25 2 94754,681 77 17,992 320,266 482 190 13,296 172 12,790134,903 5 3,414 56,164 125 11 3,907 28 3,178- - - - - - - - -2,273 140 1,224 739 246 49 728 235 1,1621,869,886 10,876 37,234 877,858 1,963 7,374 17,956 1,105 24,358(Amount in Rs. '000)Equity Equity Group Life Long Liquid Liquid Premier Premier PremierPlus Plus Debt Gain Pension Fund Bond Debt EquityFund Pension Fund Fund Fund Fund Fund Fund Fund33,746 5,077 - - 1,224 16,568 1,283 4,378 10,176- - - - - - - - -3,227 226 - - - 6 11 16 1273,627 1,322 - 1,878 1 13,055 878 727 1,92518,235 281 - - - 5,888 - - -- - - - - - - - -7,496 492 - 220 3 23 22 319 303136,331 7,398 - 2,098 1,228 35,540 2,194 5,440 12,41697

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix II Refer Schedule 16 Note 24SCHEDULE F5 : OTHER EXPENSESSchedules to Fund Revenue AccountstAs at 31 March 2008ParticularsPolicy Administration ChargeSurrender ChargeSwitching ChargeMortality ChargeRider Premium ChargePartial Withdrawal ChargeMiscellaneous ChargeTotal(Amount in Rs. '000)Premier Premier Premier Pure Pure Secure Stable TotalEquity Equity Equity Equity Stock Fund FundGain Fund Growth Fund Index Fund Fund Fund16,485 12,584 4,627 36,235 107,253 - - 2,123,697- - - - - - - -5 8 4 - - - - 8,6603,526 8,151 2,748 16,507 41,826 - - 1,635,641- - - 2,049 8,177 - - 321,017- - - - - - - -532 293 100 279 34 - - 27,93220,548 21,036 7,479 55,070 157,290 - - 4,116,94798

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Schedules forming part of financial statements for year ended 31st March 2009Disclosure for Unit Linked Business as per Unit Linked Disclosure Norms:I. Performance of Fund: Refer Enclosure “A”I. Investment Managementi) Activities outsourced: Fund Accounting (Part of the year).ii)iii)Fess paid for various activities charged to Policyholders' account: Refer Enclosure “B”.Basis of Payment of Fees: Refer Enclosure “B”.II.III.Related party transactionsi) During the year no brokerage, custodial fees and any other payments and receipts made to/from relatedparties (Previous year: NIL).ii)Company wise details of investments held in the promoter group along with its percentage to funds understmanagement: As on 31 March 09 no investments is held in the promoter group (Previous year NIL)Industry wise Disclosure of Investment: Refer Enclosure “C”.stIV. Unclaimed redemption of Units: As on 31 March 09 there is no unclaimed redemption of units.V. Highest, Lowest and Closing NAV at the end of the year: Refer Enclosure “D”.VI. Expenses Charged to Fund (percentage basis) :i) Annualized expense ratio to average daily assets of the Fund: Refer Enclosure “E”VII. Ratio of Gross income to average daily net assets: Refer Enclosure “F”stVIII.There are no doubtful debts on assets as on 31 March 09.IX. Disclosure of appreciation and/or depreciation in value of investments: Refer Enclosure “G”99

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Enclosure A : Performance of Fund (Absolute Growth %)Fund Names Date of Current Year SinceInception 2008-09 (%) 2007-08 (%) 2006-07 (%) Inception (%)Accelerated Fund 18-Nov-04 (2.42) 19.43 6.78 42.18Acc Mid Cap Pension Fund 24-Jul-06 (41.49) 27.58 18.99 (11.18)Acc Mid Cap Fund 24-Jul-06 (41.27) 23.31 22.39 (11.37)Asset Allocation Fund 28-Sep-07 (8.12) 0.04 NA (8.08)Asset Allocation Pension Fund 28-Jan-08 (8.37) (3.44) NA (11.52)Balanced Fund 15-Jan-04 (15.64) 15.44 7.56 34.44Balanced Plus Fund 23-Jul-04 (12.56) 15.63 8.36 55.96Balanced Plus Pension Fund 18-Nov-04 (11.93) 16.30 9.10 48.65Bond Fund 10-Jul-06 13.22 9.54 4.15 29.17Bond Pension Fund 24-Jul-06 14.26 10.55 4.46 31.95Capital Guarantee Fund- 2012 11-Jan-07 (0.89) 9.90 (0.66) 8.92Capital Guarantee Fund- 2014 11-Jan-07 (3.64) 12.88 (10.39) 6.59Capital Guarantee Fund- 2017 11-Jan-07 (10.56) 13.76 (2.20) 1.33Capital Shield Fund- I 24-Nov-08 4.59 - NA 4.59Capital Shield Fund- II 24-Nov-08 3.98 - NA 3.98Cash Fund 15-Jan-04 9.12 8.63 5.39 32.93Cash Plus Fund 23-Jul-04 10.73 10.19 6.99 41.89Cash Plus Pension Fund 18-Nov-04 10.77 10.87 7.18 41.11Debt Fund 15-Jan-04 11.45 8.77 3.60 28.29Debt Plus Fund 23-Jul-04 13.99 10.21 5.06 37.45Debt Plus Pension Fund 18-Nov-04 13.26 10.40 5.61 40.38Equity Fund 15-Jan-04 (36.44) 21.85 11.67 41.42Equity Gain Fund 23-Jul-04 (30.48) 12.89 4.95 91.86Equity Growth Fund 24-Jul-06 (34.55) 14.34 18.45 (11.36)Equity Growth Pension Fund 24-Jul-06 (34.41) 12.20 18.66 (12.68)Equity Index Fund 23-Jul-04 (35.57) 23.62 12.47 81.90Equity Index Fund - II 24-Jul-06 (35.59) 22.93 23.87 (1.92)Equity Index Pension Fund 18-Nov-04 (35.62) 23.21 13.08 59.82Equity Index Pension Fund - II 24-Jul-06 (35.64) 22.82 21.58 (3.89)Equity Midcap Fund 9-Mar-05 (31.01) 15.31 4.20 46.09Equity Midcap Pension Fund 9-Mar-05 (29.05) 21.96 6.80 68.23Equity Midcap Plus Fund 9-Mar-05 (30.89) 18.45 5.11 54.61Equity Plus Fund 23-Jul-04 (29.76) 12.97 6.11 99.81Equity Plus Pension Fund 18-Nov-04 (27.68) 13.51 7.08 81.27Group Debt Fund 26-Mar-08 12.59 - NA 12.59Group Liquid Fund 3-Nov-08 5.17 - NA 5.17Group Short Term Debt Fund 28-Feb-09 0.18 - NA 0.18Life Long Gain Fund 23-Jul-04 11.20 8.49 4.30 19.44Liquid Pension Fund 24-Jul-06 10.57 9.96 4.84 27.46Liquid Fund 10-Jul-06 10.38 9.97 5.15 27.63Premier Balanced Fund 17-Dec-05 (12.31) 13.99 7.25 16.60Premier Bond Fund 21-Jul-06 10.62 7.94 2.79 22.73Premier Debt Fund 17-Dec-05 11.68 8.43 4.11 27.90Premier Equity Fund 17-Dec-05 (36.48) 21.99 11.34 3.71Premier Equity Gain Fund 17-Dec-05 (28.62) 9.14 5.20 3.78Premier Equity Growth Fund 24-Jul-06 (36.92) 9.42 20.51 (16.82)Premier Equity Index Fund 24-Jul-06 (36.82) 21.24 22.42 (6.23)Pure Equity Fund 17-Dec-05 (17.04) 19.38 (0.38) 21.14Pure Stock Fund 21-Jul-06 (17.88) 24.49 13.66 16.20Pure Stock Pension Fund 17-Apr-08 (19.66) - NA (19.66)Secure Fund 15-Oct-04 3.69 16.47 6.31 35.75Stable Fund 15-Sep-04 1.48 14.25 4.46 32.46100

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Enclosure B: Fees Charged to Policyholders' Account2008-09 2007-08Particulars Fund Fund Miscella- Miscella- Policy Switching Mortality Rider Fund Fund Miscella- Policy Switching Mortality RiderManage- Admini- neous neous Admini- Charge Charge Premium Manage- Admini- neous Admini- Charge Charge Premiumment stration Charge Charge stration Charge ment stration Charge stration ChargeExpenses Expenses -Service Charge Expenses Expenses ChargeTaxAccelerated Fund 662 - - 32 - - - - 853 - - - - - -Acc Mid Cap Pension Fund 3,062 - 16 290 2,238 - 83 7 2,285 - 15 897 1 9 1Acc Mid Cap Fund 44,674 - 213 27,488 138,126 - 105,768 14,324 24,749 - 182 86,755 2 74,532 12,684Asset Allocation Fund 153,141 - 948 339,653 880,968 - 266,848 18,656 23,419 - - 186,999 - 59,044 4,475Asset Allocation Pension Fund 5,267 - 32 2,581 13,132 - 2,217 111 186 - - - - 255 17Balanced Fund - - - - - - - - - - - - - - -Balanced Plus Fund - - - - - - - - - - - - - - -Balanced Plus Pension Fund - - - - - - - - - - - - - - -Bond Fund 16,715 - 118 40,231 106,285 10 70,532 23,887 7,317 - 87 64,016 32 48,713 22,490Bond Pension Fund 1,525 - 9 1,009 1,963 4 59 4 638 - 8 879 12 2 -Capital Guarantee Fund- 2012 1,400 - 9 279 2,300 - 1,774 - 1,334 - 13 1,602 - 1,298 -Capital Guarantee Fund- 2014 97 - 1 20 150 - 140 - 95 - 1 104 - 101 -Capital Guarantee Fund- 2017 621 - 4 120 1,089 - 744 - 654 - 6 759 - 551 -Capital Shield Fund- I 4,402 - - 508 - - - - - - - - - - -Capital Shield Fund- II 1,430 - - 156 - - - - - - - - - - -Cash Fund 10,291 12,863 123 4,140 1 175 33,931 13,678 9,971 12,533 555 - 318 15,940 6,741Cash Plus Fund 10,262 - 314 2,258 11,210 845 84,188 3,188 13,086 - 957 4,263 2,035 11,172 1,750Cash Plus Pension Fund 731 - 9 117 4,248 61 1,071 97 1,091 - 200 712 110 348 42Debt Fund 12,354 15,442 285 3,858 - 36 35,631 9,889 12,076 15,182 673 - 107 14,418 3,986Debt Plus Fund 9,477 - 302 3,555 15,369 206 14,128 3,607 10,242 - 770 6,799 983 12,827 2,066Debt Plus Pension Fund 975 - 11 185 2,326 44 1,476 193 849 - 221 962 194 545 86Equity Fund 38,343 47,929 1,066 9,963 - 56 96,082 25,180 48,255 60,602 2,606 - 88 38,890 11,847Equity Gain Fund 116,875 97,396 2,012 23,442 - 185 225,493 32,085 129,715 108,475 4,726 - 444 70,879 18,467Equity Growth Fund 503,160 - 2,417 392,524 1,664,593 4 1,157,353 154,122 297,704 - 2,273 978,013 16 754,681 134,903Equity Growth Pension Fund 24,333 - 124 3,014 20,202 2 784 35 17,734 - 140 10,648 6 77 5Equity Index Fund 20,760 - 504 5,058 31,352 318 23,572 5,694 23,282 - 1,224 13,995 609 17,992 3,414Equity Index Fund - II 231,794 - 1,506 547,634 1,551,312 8 858,700 130,125 83,775 - 739 500,668 21 320,266 56,164Equity Index Pension Fund 1,554 - 15 206 2,720 15 1,392 266 1,962 - 246 1,069 41 482 125Equity Index Pension Fund - II 17,359 - 119 4,776 26,520 2 2,015 96 5,930 - 49 7,119 5 190 11Equity Midcap Fund 17,368 14,473 288 3,659 - 27 33,759 7,063 19,453 16,274 728 - 25 13,296 3,907Equity Midcap Pension Fund 1,773 - 11 112 - 2 349 53 2,342 - 235 668 2 172 28Equity Midcap Plus Fund 27,119 - 479 3,913 16,042 90 16,035 5,409 33,334 - 1,162 7,134 94 12,790 3,178Equity Plus Fund 180,803 - 3,056 28,492 122,616 967 199,382 28,946 212,979 - 7,496 33,746 3,227 73,627 18,235Equity Plus Pension Fund 11,955 - 143 987 13,855 125 3,881 571 15,276 - 492 5,077 226 1,322 281Group Debt Fund 5,164 - - 507 - - - - 21 - - - - - -Group Liquid Fund 244 - - 29 - - - - - - - - - - -Group Short Term Debt Fund 7 - - 1 - - - - - - - - - - -Life Long Gain Fund 1,852 2,315 16 493 - - 4,522 - 1,379 1,723 220 - - 1,878 -Liquid Pension Fund 317 - 2 75 1,030 - 7 - 233 - 3 1,224 - 1 -Liquid Fund 4,522 - 34 22,530 30,108 2 20,270 7,014 1,956 - 23 16,568 6 13,055 5,888Premier Balanced Fund - - - - - - - - - - - - - - -Premier Bond Fund 5,429 - 15 669 1,954 3 1,353 - 4,926 - 22 1,283 11 878 -Premier Debt Fund 3,184 - 11 325 4,139 18 3,273 - 5,624 - 319 4,378 16 727 -Premier Equity Fund 9,412 - 122 863 9,781 4 4,499 - 13,458 - 307 10,175 12 1,921 -Premier Equity Gain Fund 14,251 - 92 1,424 15,538 8 6,408 - 22,115 - 532 16,485 5 3,526 -Premier Equity Growth Fund 43,197 - 148 3,687 21,457 1 15,116 - 47,783 - 293 12,584 8 8,151 -Premier Equity Index Fund 24,396 - 83 2,085 9,435 1 6,530 - 17,970 - 100 4,627 4 2,748 -Pure Equity Fund 9,642 - 143 5,017 77,826 - 31,853 3,168 8,387 - 279 36,235 - 16,507 2,049Pure Stock Fund 14,371 - 59 29,306 185,033 - 67,718 9,042 5,482 - 30 107,254 - 41,830 8,177Pure Stock Pension Fund 63 - 0 22 38 - 3 - - - - - - - -Secure Fund 4,511 - - 271 - - - - 300 - - - - - -Stable Fund 11,761 - - 205 - - - - 6,675 - - - - - -Total 1,622,605 190,418 14,860 1,517,770 4,984,956 3,219 3,398,939 496,510 1,136,895 214,789 27,932 2,123,697 8,660 1,635,641 321,017Basis of Payment of FeesFund Management ExpensesFund Administration ExpensesMisc. ChargeMisc. Charge-Service TaxPolicy Administration ChargeSwitching ChargeMortality ChargeRider Premium Charge% of NAV% of NAV/Fixed Amount% of Assets Under ManagementApplicable rate of Service Tax on ChargesCharges applicable p.a.Expense per switchAs per mortality tableAs per rider charges in the policy documents101

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Enclosure C : Summary of Industry Wise Disclosure of InvestmentsIndustryF.Y.2008-09F.Y.2007-08Amt in Rs. '000 Exposure (%) Amt in Rs. '000 Exposure (%)Banking Service Industry - Fixed Deposit 3,745,028 2.77 1,699,800 1.66Banking Service Industry - Other Than Fixed Deposit 24,657,275 18.21 17,140,807 16.70Others 107,004,714 79.02 83,825,333 81.65Total 135,407,017 100 102,665,940 100Note : - Industry Exposure does not include cash elementFundwise Industrywise Disclosure of InvestmentsF.Y. 2008-09 F.Y. 2007-08Portfolio Name Banking Services Others Banking Services OthersIndustryIndustryAmt in Rs. '000 Exposure (%) Amt in Rs. '000 Exposure (%) Amt in Rs. '000 Exposure (%) Amt in Rs. '000 Exposure (%)Accelerated Fund 1,085 - 17,051 0.02 24,555 0.13 39,477 0.05Acc Mid Cap Pension Fund 38,363 0.14 145,893 0.14 45,427 0.24 151,160 0.18Acc Mid Cap Fund 705,113 2.48 2,657,922 2.48 551,818 2.93 1,789,503 2.13Asset Allocation Fund 5,875,230 20.69 11,392,662 10.65 1,529,470 8.12 7,358,169 8.78Asset Allocation Pension Fund 132,917 0.47 571,109 0.53 35,962 0.19 164,285 0.20Bond Fund 510,341 1.80 2,482,007 2.32 424,551 2.25 659,099 0.79Bond Pension Fund 47,301 0.17 304,519 0.28 42,391 0.22 49,767 0.06Capital Guarantee Fund- 2012 2,263 0.01 107,683 0.10 3,220 0.02 111,702 0.13Capital Guarantee Fund- 2014 148 - 7,359 0.01 413 - 7,713 0.01Capital Guarantee Fund- 2017 2,607 0.01 44,724 0.04 2,148 0.01 51,859 0.06Capital Shield Fund- I 199,664 0.70 536,277 0.50 - - - -Capital Shield Fund- II 61,670 0.22 342,756 0.32 - - - -Cash Fund 858,437 3.02 268,386 0.25 866,788 4.60 90,180 0.11Cash Plus Fund 1,051,588 3.70 346,659 0.32 1,608,112 8.54 103,371 0.12Cash Plus Pension Fund 70,989 0.25 25,132 0.02 96,920 0.51 10,467 0.01Debt Fund 56,305 0.20 1,243,406 1.16 372,015 1.97 775,063 0.92Debt Plus Fund 159,212 0.56 1,291,850 1.21 579,312 3.07 988,415 1.18Debt Plus Pension Fund 15,571 0.05 130,696 0.12 57,746 0.31 76,814 0.09Equity Fund 309,692 1.09 2,936,399 2.74 424,393 2.25 4,282,561 5.11Equity Gain Fund 1,340,982 4.72 5,938,436 5.55 1,036,647 5.50 7,865,672 9.38Equity Growth Fund 9,193,384 32.37 27,883,179 26.06 5,102,943 27.08 19,404,759 23.15Equity Growth Pension Fund 378,534 1.33 1,204,027 1.13 247,758 1.32 1,103,715 1.32Equity Index Fund 166,670 0.59 1,604,419 1.50 224,645 1.19 2,236,379 2.67Equity Index Fund - II 2,921,266 10.29 25,361,452 23.70 1,476,620 7.84 12,434,805 14.83Equity Index Pension Fund 12,874 0.05 122,801 0.11 17,673 0.09 178,149 0.21Equity Index Pension Fund - II 194,214 0.68 1,661,228 1.55 127,169 0.67 1,003,816 1.20Equity Midcap Fund 177,833 0.63 847,947 0.79 298,869 1.59 1,031,158 1.23Equity Midcap Pension Fund 18,263 0.06 78,637 0.07 31,253 0.17 110,923 0.13Equity Midcap Plus Fund 291,391 1.03 1,249,024 1.17 489,209 2.60 1,644,471 1.96Equity Plus Fund 2,007,562 7.07 8,865,837 8.29 1,300,673 6.90 12,751,208 15.21Equity Plus Pension Fund 135,079 0.48 600,460 0.56 157,895 0.85 809,088 0.97Group Debt Fund 94,345 0.33 774,205 0.72 - - - -Group Liquid Fund 66,140 0.23 29,480 0.03 - - - -Group Short Term Debt Fund - - 9,467 0.01 - - - -Life Long Gain Fund 28,381 0.10 146,644 0.14 48,386 0.26 119,313 0.14Liquid Pension Fund 36,501 0.13 12,548 0.01 21,772 0.12 3,121 -Liquid Fund 570,922 2.01 148,421 0.14 294,665 1.56 13,786 0.02Premier Bond Fund 25,627 0.09 223,385 0.21 84,410 0.45 84,851 0.10Premier Debt Fund 20,783 0.07 109,384 0.10 71,068 0.38 122,290 0.15Premier Equity Fund 31,125 0.11 296,435 0.28 48,244 0.26 493,520 0.59Premier Equity Gain Fund 82,835 0.29 432,576 0.40 94,405 0.50 743,004 0.89Premier Equity Growth Fund 292,605 1.03 1,017,133 0.95 260,461 1.38 1,651,502 1.97Premier Equity Index Fund 76,560 0.27 731,118 0.68 89,782 0.48 851,255 1.02Pure Equity Fund - - 728,965 0.68 - - 629,415 0.75Pure Stock Fund - - 1,541,181 1.44 - - 623,763 0.74Pure Stock Pension Fund - - 8,432 0.01 - - - -Secure Fund 58,825 0.21 336,496 0.31 30,594 0.16 142,585 0.17Stable Fund 81,107 0.29 188,906 0.18 620,225 3.29 1,063,180 1.27Total 28,402,304 100 107,004,713 100 18,840,607 100 83,825,333 100102

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Banking Services- Exposure details - Scrip WiseInstrument F.Y. 2008-09 F.Y. 2007-08Amt in Rs. '000 (%) Amt in Rs. '000 (%)10% HDFC Bank Ltd... - 13-Dec-2011 FD 49,900 0.18 - -10% Punjab National Bank - 13-Mar-2009 FD - - 100,000 0.5310% Saraswat Bank - 06-May-2008 FD - - 50,000 0.2710.10% Punjab National Bank 12 March 2009 - - 300,000 1.5910.10% SBI Upper Tier II 12 SEP 2022 Call 12 SEP 2017 - - 312,641 1.6610.20% SyndicateBank - 17-Mar-2009 FD - - 150,000 0.8010.25% HDFC Bank Ltd... - 08-Jul-2008 FD - - 49,900 0.2610.5% Saraswat Bank - 24-Mar-2010 FD 50,000 0.18 50,000 0.2710.50% Citi Bank FD 28 Jan 2010 150,000 0.53 - -10.50% HDFC Bank Ltd... - 03-Jul-2008 FD - - 49,900 0.2610.50% HDFC Bank Ltd... - 11-Dec-2009 FD 49,900 0.18 - -10.50% Saraswat Bank 24 March 2010 - - 50,000 0.2710.50% Saraswat Bank 24 March 2010 50,000 0.18 - -11.10% IDBI Bank Ltd... 26 Sep 2013 53,188 0.19 - -11.15% YES Bank - 10-Jun-2008 FD - - 100,000 0.5311.25% CanaraBank - 03-Mar-2009 FD - - 100,000 0.5311.25% ICICI Bank Ltd... - 13-Mar-2009 FD - - 100,000 0.5311.30% CanaraBank - 13-Mar-2009 FD - - 150,000 0.8011.30% SyndicateBank - 24-Mar-2009 FD - - 50,000 0.2711.30% SyndicateBank - 24-Mar-2009 FD - - 200,000 1.0612.10% Punjab National Bank - 26-Sep-2009 FD 250,000 0.88 - -4.25% SyndicateBank FD 09 April 2009 499,128 1.76 - -6.00% IDBI OMNI Bonds M - 16/01/2009 - - 48,713 0.267.50% State Bank of India FD 08 March 2010 500,000 1.76 - -8.50% ICICI Bank FD 09 March 2010 400,000 1.41 - -9.0% CanaraBank FD 02 Feb 2011 9,500 0.03 - -9.0% CanaraBank FD 05 July 2011 9,500 0.03 - -9.0% CanaraBank FD 07 June 2011 9,500 0.03 - -9.0% CanaraBank FD 08 March 2011 9,500 0.03 - -9.0% CanaraBank FD 10 May 2011 9,500 0.03 - -9.0% CanaraBank FD 12 April 2011 9,500 0.03 - -9.0% CanaraBank FD 18 Jan 2011 9,500 0.03 - -9.0% CanaraBank FD 19 July 2011 9,500 0.03 - -9.0% CanaraBank FD 21 June 2011 9,500 0.03 - -9.0% CanaraBank FD 22 Feb 2011 9,500 0.03 - -9.0% CanaraBank FD 22 March 2011 9,500 0.03 - -9.0% CanaraBank FD 24 May 2011 9,500 0.03 - -9.0% CanaraBank FD 26 April 2011 9,500 0.03 - -9.0% HDFC Bank FD 01 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 03 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 07 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 09 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 10 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 11 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 14 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 15 March 2011 49,900 0.18 - -9.0% HDFC Bank FD 24 Feb 2011 49,900 0.18 - -9.0% Indian Bank FD 02 Feb 2011 9,500 0.03 - -9.0% Indian Bank FD 05 July 2011 9,500 0.03 - -9.0% Indian Bank FD 07 June 2011 9,500 0.03 - -9.0% Indian Bank FD 08 March 2011 9,500 0.03 - -9.0% Indian Bank FD 10 May 2011 9,500 0.03 - -9.0% Indian Bank FD 12 April 2011 9,500 0.03 - -103

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Banking Services- Exposure details - Scrip WiseInstrument F.Y. 2008-09 F.Y. 2007-08Amt in Rs. '000 (%) Amt in Rs. '000 (%)9.0% Indian Bank FD 18 Jan 2011 9,500 0.03 - -9.0% Indian Bank FD 19 July 2011 9,500 0.03 - -9.0% Indian Bank FD 21 June 2011 9,500 0.03 - -9.0% Indian Bank FD 22 Feb 2011 9,500 0.03 - -9.0% Indian Bank FD 22 March 2011 9,500 0.03 - -9.0% Indian Bank FD 24 May 2011 9,500 0.03 - -9.0% Indian Bank FD 26 April 2011 9,500 0.03 - -9.25% IDBI Omni Bonds 26/03/2014 Series XVIII 149,904 0.53 - -9.30% Bank of Baroda - U Tier II 28-Dec-2022 C 28-Dec-2017 - - 148,225 0.799.30% State Bank of Patiala Upper Tier II 20 Dec 2022 Call 20 Dec 2017 - - 49,410 0.269.35% Punjab National Bank Upper Tier II 12 Dec 2022 Call 12 Dec 2017 - - 99,441 0.539.35% Punjab National Bank - 05-Mar-2023 05-Mar-2018 C - - 49,751 0.269.40% Syndicate Bank perpetual Bond call 12 Jan 2019 76,402 0.27 - -9.5% State Bank of Bikaner - 10-Feb-2011 FD 250,000 0.88 - -9.50% State Bank of India - 10-Dec-2013 FD 250,000 0.88 - -9.50% Syndicate Bank - 04-Dec-2010 FD 550,000 1.94 - -9.85% Canara Bank - 28-Mar-2009 FD - - 200,000 1.069.90% State Bank of Patiala Upper Tier II 28 SEP 2022 Call 28 SEP 2017 - - 51,255 0.279.98% ICICI Bank Perpetual Call 13 Sept 2016 51,196 0.18 50,574 0.27Allahabad Bank CD 03 Mar 09 - - 137,412 0.73Allahabad Bank CD 04 Aug 2009 733,423 2.58 - -Allahabad Bank CD 04 Jan 2010 235,506 0.83 - -Allahabad Bank CD 18 June 2009 246,177 0.87 - -Allahabad Bank CD 27 Feb 2009 - - 229,672 1.22Andhra Bank - Equity Shares 127,447 0.45 - -Axis Bank CD 01 Oct 2008 - - 239,519 1.27Axis Bank CD 19 Feb 2009 - - 275,846 1.46Axis Bank CD 24 Nov 08 - - 235,898 1.25Axis Bank Ltd... - Equity Shares 1,135,552 4.00 - -Axis Bank Ltd... CD - 09-May-2008 - - 49,596 0.26Bank of Baroda - Equity Shares 230,692 0.81 - -Bank of Baroda CD 11 Aug 2009 385,826 1.36 - -Bank of Baroda CD 15 Jan 2010 616,295 2.17 - -Bank of Baroda CD 26 Feb 2010 943,013 3.32 - -Bank of India CD 23 March 2010 465,175 1.64 - -Canara Bank CD 04 Feb 2009 - - 92,969 0.49Canara Bank CD 07 Oct 2008 - - 143,640 0.76Canara Bank CD 12 Feb 2010 472,066 1.66 - -Citi Bank CD 7 July 2008 - - 244,794 1.30Corportation Bank - Equity Shares 129,223 0.45 - -Corporation Bank CD 02 March 2010 470,628 1.66 - -Corporation Bank CD 03 Aug 2009 144,945 0.51 - -Corporation Bank CD 12 Feb 09 - - 138,590 0.74Corporation Bank CD 20 May 08 - - 345,688 1.83HDFC Bank CD 23 Sep 2009 142,347 0.50 - -HDFC Bank Ltd... - Equity Shares 1,537,016 5.41 389,586 2.07ICICI Bank CD 10 Mar 09 - - 456,463 2.42ICICI Bank CD 27 Aug 08 - - 241,063 1.28ICICI Bank CD 27 Feb 2009 - - 458,620 2.43ICICI Bank Ltd... - Equity Shares 2,264,941 7.97 2,229,417 11.83IDBI Bank CD 12 Mar 09 - - 228,039 1.21IDBI Bank CD 19 May 08 - - 98,747 0.52IDBI Ltd... - Equity Shares - - 302,940 1.61104

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Banking Services- Exposure details - Scrip WiseInstrument F.Y. 2008-09 F.Y. 2007-08Amt in Rs. '000 (%) Amt in Rs. '000 (%)Indian Bank CD 4 April 08 - - 199,829 1.06ING Vysya Bank Ltd... - Equity Shares 169,118 0.60 355,080 1.88Kotak Bank CD 4 July 2008 - - 244,480 1.30Kotak Mahindra Bank CD 30 May 2008 - - 147,750 0.78National Housing Bank Loan PTC Class A8- 25-Mar-2010 36,066 0.13 - -Oriental Bank of Commerce - Equity Shares - - 172,679 0.92Oriental Bank of Commerce CD 01 Jan 10 237,003 0.83 - -Oriental Bank of Commerce CD 04 June 09 98,532 0.35 - -Oriental Bank of Commerce CD 15 Sep 08 - - 239,251 1.27Oriental Bank of Commerce CD 24 Dec 08 - - 93,741 0.50Oriental Bank of Commerce CD 26 Aug 09 95,879 0.34 - -Punjab National Bank CD 12 Jan 2009 - - 233,600 1.24Punjab National Bank CD 29 July 2009 241,360 0.85 - -Punjab National Bank - Equity Shares 476,223 1.68 787,690 4.18Punjab National Bank CD - 17-Dec-2009 377,368 1.33 - -Punjab National Bank CD 04 Feb 2010 471,081 1.66 - -Punjab National Bank CD 12 Feb 2010 471,075 1.66 - -Punjab National Bank CD 17 March 2010 372,616 1.31 - -Punjab National Bank CD 31 Aug 2009 191,574 0.67 - -Punjab National Bank-CD - 24-Feb-2009 - - 367,820 1.95State Bank of Bikaner & Jaipur CD 20 Jan 2009 - - 233,521 1.24State Bank of Bikaner & Jaipur CD 17 Nov 2009 237,625 0.84 - -State Bank of Bikaner & Jaipur CD 24 Feb 2010 471,986 1.66 - -State Bank of Bikaner & Jaipur CD 27 Aug 2009 95,809 0.34 - -State Bank of Bikaner & Jaipur CD 04 Dec 08 - - 141,458 0.75State Bank of Bikaner & Jaipur CD 13 June 08 - - 245,762 1.30State Bank of Hyderabad CD 04 Jan 2010 235,392 0.83 - -State Bank of Hyderabad CD 09 Nov 2009 142,867 0.50 - -State Bank of Hyderabad CD 12 June 2008 - - 246,017 1.31State Bank of Hyderabad CD 18 Jan 2010 237,542 0.84 - -State Bank of Hyderabad CD 20 Aug 2009 192,255 0.68 - -State Bank of Hyderabad CD 28 May 08 - - 197,064 1.05State Bank of Hyderabad CD 30 June 2008 - - 243,890 1.29State Bank of India - Equity Shares 2,989,425 10.53 1,981,609 10.52State Bank of India CD 29 May 2008 - - 888,309 4.71State Bank of Indore 01 June 2009 494,352 1.74 - -State Bank of Indore CD 12 May 2008 - - 99,065 0.53State Bank of Mysore - 04-Aug-2009 978,274 3.44 - -State Bank of Mysore CD - 15-June-2009 493,018 1.74 - -State Bank of Mysore CD 01 Sep 08 - - 240,061 1.27State Bank of Mysore CD 10 Feb 2009 - - 369,947 1.96State Bank of Mysore CD 11 June 08 - - 245,895 1.31State Bank of Mysore CD 16-Dec-2009 236,103 0.83 - -State Bank of Patiala CD 01 June 2009 494,147 1.74 - -State Bank of Patiala CD 10 March 2009 - - 228,822 1.21State Bank of Patiala CD 12 March 2010 233,725 0.82 - -State Bank of Patiala CD 18 March 2010 234,042 0.82 - -State Bank of Patiala CD 22 June 2009 246,313 0.87 - -State Bank of Patiala CD 28 Oct 08 - - 95,181 0.51State Bank of Patiala CD 29 Aug 2008 - - 240,904 1.28State Bank of Travancore CD 03 Aug 2009 489,234 1.72 - -State Bank of Travancore CD 24 Nov 2009 474,509 1.67 - -SyndicateBank CD 29 March 2010 466,904 1.64 - -105

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Banking Services- Exposure details - Scrip WiseInstrument F.Y. 2008-09 F.Y. 2007-08Amt in Rs. '000 (%) Amt in Rs. '000 (%)UCO Bank CD 20 Nov 08 - - 141,843 0.75UCO Bank CD 26 March 2009 - - 136,816 0.73Union Bank 30 May 2008 - - 246,263 1.31Union Bank CD 18 July 2008 - - 244,280 1.30Union Bank CD 23 Oct 2008 - - 238,991 1.27Union Bank CD 24 June 2008 - - 244,680 1.30Union Bank of India CD 06 Nov 2009 479,771 1.69 - -Union Bank of India CD 15-Dec-2009 472,120 1.66 - -Union Bank of India CD 24 Dec 2009 235,363 0.83 - -Vijaya Bank - Equity Shares 177,642 0.63 - -Grand Total 28,402,303 100 18,840,607 100106

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Enclosure D: Highest,Lowest and Closing NAV For the year 2008-09Fund Name F.Y. 2008-09 F.Y. 2007-08Closing NAV Lowest NAV Highest NAV Closing NAV Lowest NAV Highest NAV31-March-200931-March-2008(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)Accelerated Fund 14.218 12.464 15.307 14.571 12.200 16.694Acc Mid Cap Pension Fund 8.882 7.662 16.121 15.181 11.946 19.217Acc Mid Cap Fund 8.863 7.651 15.892 15.092 12.308 19.420Asset Allocation Fund 9.192 8.099 10.438 10.004 9.714 11.331Asset Allocation Pension Fund 8.848 7.816 10.030 9.656 9.311 10.112Balanced Fund 13.444 11.779 16.875 15.937 13.832 18.851Balanced Plus Fund 15.596 13.541 18.887 17.836 15.460 20.964Balanced Plus Pension Fund 14.865 12.990 17.833 16.878 14.548 19.733Bond Fund 12.917 11.303 13.216 11.409 10.449 11.458Bond Pension Fund 13.195 11.511 13.464 11.548 10.475 11.548Capital Guarantee Fund- 2012 10.892 9.801 11.305 10.990 9.999 11.920Capital Guarantee Fund- 2014 10.659 9.481 11.447 11.062 9.796 12.123Capital Guarantee Fund- 2017 10.133 8.857 11.881 11.330 9.963 12.973Capital Shield Fund- I 10.459 10.000 10.459 - - -Capital Shield Fund- II 10.398 9.973 10.398 - - -Cash Fund 13.293 12.200 13.293 12.182 11.247 12.182Cash Plus Fund 14.189 12.836 14.189 12.814 11.668 12.814Cash Plus Pension Fund 14.111 12.763 14.111 12.739 11.529 12.739Debt Fund 12.829 11.382 13.180 11.511 10.617 11.540Debt Plus Fund 13.745 11.995 14.062 12.058 10.982 12.058Debt Plus Pension Fund 14.038 12.358 14.400 12.395 11.270 12.414Equity Fund 14.142 11.873 24.518 22.251 18.271 29.747Equity Gain Fund 19.186 16.236 29.771 27.597 24.562 36.915Equity Growth Fund 8.864 7.629 14.783 13.544 11.904 18.135Equity Growth Pension Fund 8.732 7.546 14.580 13.314 11.924 18.509Equity Index Fund 18.190 15.176 31.138 28.230 22.848 37.578Equity Index Fund - II 9.808 8.202 16.789 15.227 12.416 20.320Equity Index Pension Fund 15.982 13.351 27.385 24.826 20.169 33.109Equity Index Pension Fund - II 9.611 8.038 16.470 14.933 12.180 19.917Equity Midcap Fund 14.609 12.457 22.661 21.174 18.430 28.182Equity Midcap Pension Fund 16.823 14.332 25.511 23.710 19.523 29.914Equity Midcap Plus Fund 15.461 13.173 23.724 22.372 18.967 29.307Equity Plus Fund 19.981 16.860 30.669 28.445 25.309 38.523Equity Plus Pension Fund 18.127 14.966 26.960 25.065 22.195 33.741Group Debt Fund 11.259 9.975 11.569 10.000 10.000 10.017Group Liquid Fund 10.517 10.009 10.517 - - -Group Short Term Debt Fund 10.018 9.947 10.026 - - -Life Long Gain Fund 11.944 10.595 12.247 10.741 9.931 10.778Liquid Pension Fund 12.746 11.547 12.746 11.528 10.515 11.528Liquid Fund 12.763 11.583 12.763 11.563 10.546 11.563Premier Balanced Fund 11.660 10.264 13.994 13.297 11.685 15.446Premier Bond Fund 12.273 10.935 12.581 11.095 10.308 11.163Premier Debt Fund 12.790 11.371 13.301 11.452 10.594 11.518Premier Equity Fund 10.371 8.701 17.992 16.326 13.384 21.762Premier Equity Gain Fund 10.378 8.688 16.059 14.539 13.385 21.744Premier Equity Growth Fund 8.318 7.195 14.422 13.186 12.105 18.330Premier Equity Index Fund 9.377 7.901 16.346 14.842 12.247 19.853Pure Equity Fund 12.114 9.930 15.464 14.603 12.179 17.925Pure Stock Fund 11.620 9.565 14.963 14.150 11.317 17.106Pure Stock Pension Fund 8.034 6.772 10.324 - - -Secure Fund 13.575 12.413 13.776 13.092 11.241 13.239Stable Fund 13.246 12.024 13.403 13.053 11.425 14.504107

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Enclosure E and FAnnualised Expense Ratio toAverage Daily Assets of the FundRatio of Gross Income toAverage Daily Assets of the Fund.Fund Names Expense Ratio (%)F.Y.2008-09 F.Y.2007-08Accelerated Fund 1.26 1.20Acc Mid Cap Pension Fund 1.85 1.76Acc Mid Cap Fund 1.86 1.76Asset Allocation Fund 1.87 1.24Asset Allocation Pension Fund 0.75 1.25Bond Fund 1.02 0.96Bond Pension Fund 1.03 0.96Capital Guarantee Fund- 2012 1.33 1.25Capital Guarantee Fund- 2014 1.33 1.28Capital Guarantee Fund- 2017 1.06 1.25Capital Shield Fund- I 3.07 NACapital Shield Fund- II 3.61 NACash Fund 2.38 2.31Cash Plus Fund 0.76 0.75Cash Plus Pension Fund 0.75 0.83Debt Fund 2.39 2.31Debt Plus Fund 0.76 0.75Debt Plus Pension Fund 0.75 0.88Equity Fund 2.37 2.31Equity Gain Fund 2.90 2.81Equity Growth Fund 1.86 1.76Equity Growth Pension Fund 1.85 1.76Equity Index Fund 1.07 1.05Equity Index Fund - II 1.33 1.26Equity Index Pension Fund 1.05 1.13Equity Index Pension Fund - II 1.33 1.26Equity Midcap Fund 2.90 2.81Equity Midcap Pension Fund 1.58 1.65Equity Midcap Plus Fund 1.60 1.55Equity Plus Fund 1.60 1.55Equity Plus Pension Fund 1.59 1.55Group Debt Fund 1.10 1.00Group Liquid Fund 0.78 NAGroup Short Term Debt Fund 0.99 NALife Long Gain Fund 2.37 2.42Liquid Pension Fund 1.02 0.96Liquid Fund 1.02 0.96Premier Bond Fund 2.93 2.77Premier Debt Fund 2.38 2.38Premier Equity Fund 2.38 2.30Premier Equity Gain Fund 2.37 2.31Premier Equity Growth Fund 2.89 2.77Premier Equity Index Fund 2.89 2.77Pure Equity Fund 1.60 1.55Pure Stock Fund 2.94 1.76Pure Stock Pension Fund 1.91 NASecure Fund 1.27 1.20Stable Fund 1.22 1.20Fund Names Income Ratio (%)F.Y.2008-09 F.Y.2007-08Accelerated Fund (4.69) 19.72Acc Mid Cap Pension Fund (52.84) 16.41Acc Mid Cap Fund (48.84) 11.01Asset Allocation Fund (7.02) (22.55)Asset Allocation Pension Fund (2.55) (9.69)Bond Fund 14.83 9.68Bond Pension Fund 16.15 11.33Capital Guarantee Fund- 2012 0.30 9.70Capital Guarantee Fund- 2014 (2.63) 11.88Capital Guarantee Fund- 2017 (8.28) 12.87Capital Shield Fund- I 13.72 NACapital Shield Fund- II 31.55 NACash Fund 11.15 10.60Cash Plus Fund 10.98 10.34Cash Plus Pension Fund 10.95 11.30Debt Fund 13.47 10.80Debt Plus Fund 14.15 10.69Debt Plus Pension Fund 13.75 10.54Equity Fund (43.85) 20.30Equity Gain Fund (34.85) 11.16Equity Growth Fund (38.63) 2.86Equity Growth Pension Fund (39.23) 0.90Equity Index Fund (44.31) 18.59Equity Index Fund - II (38.55) (3.93)Equity Index Pension Fund (42.65) 19.73Equity Index Pension Fund - II (39.81) (11.79)Equity Midcap Fund (34.92) 14.65Equity Midcap Pension Fund (32.32) 19.59Equity Midcap Plus Fund (36.12) 17.49Equity Plus Fund (35.46) 10.84Equity Plus Pension Fund (32.18) 13.24Group Debt Fund 18.37 1.00Group Liquid Fund 13.01 NAGroup Short Term Debt Fund 1.87 NALife Long Gain Fund 15.17 10.23Liquid Pension Fund 11.19 10.43Liquid Fund 11.10 10.38Premier Bond Fund 14.00 10.54Premier Debt Fund 12.66 10.86Premier Equity Fund (44.54) 22.10Premier Equity Gain Fund (32.65) 12.72Premier Equity Growth Fund (44.57) 5.99Premier Equity Index Fund (45.06) 9.09Pure Equity Fund (17.33) 16.62Pure Stock Fund (11.12) 6.38Pure Stock Pension Fund (9.17) NASecure Fund 5.15 1.61Stable Fund (2.69) 9.55Note: The above percentage of charges exclude charges deducted by wayof cancellation of units.108

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Enclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of Investments(Amount in Rs. '000)ParticularsAccelerated Acc Mid Cap Acc Mid Cap Asset Asset Bond Bond Capital Capital Capital CapitalFund Pension Fund Allocation Allocation Fund Pension Guarantee Guarantee Guarantee ShieldFund Fund Pension Fund Fund Fund- 2012 Fund- 2014 Fund- 2017 Fund- IGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - - (1,402.10) - (6,628.50) (865.66) 1,458.85 32.12 914.03 -44.98 - - 39,059.70 2,659.80 14,797.70 864.02 2,667.93 35.91 (72.67) 2,624.60172.12 - - 178,515.70 6,281.42 52,891.04 6,165.74 394.81 161.94 489.33 3,957.78(2,445.91) (18,270.58) (271,899.87) (187,552.07) 615.09 - - (6,698.92) (470.51) (4,737.24) -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)(2,229) (18,271) (271,900) 28,621 9,556 61,060 6,164 (2,177) (241) (3,407) 6,582Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -4.56 (1,312.11) (16,088.31) (84,322.24) (2,232.68) - - (1,809.39) (140.06) (1,371.75) -- 27.32 320.90 - - - - - - - -Total(B)5 (1,285) (15,767) (84,322) (2,233) - - (1,809) (140) (1,372) -Total(A+B)(2,224) (19,555) (287,667) (55,701) 7,324 61,060 6,164 (3,987) (381) (4,778) 6,582stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2009(Amount in Rs. '000)ParticularsCapitalCash Cash Cash Debt Debt Debt Equity Equity Equity EquityShield Fund Plus Plus Fund Plus Plus Fund Gain Growth GrowthFund- II Fund Pension Fund Fund Pension Fund Fund Fund Pension FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - - - (7,045.97) (8,669.49) (799.76) - - - -10,552.00 - - - 8,213.01 10,817.00 447.35 - - - -213.06 - - - 28,649.71 30,853.78 2,443.31 - - - -- - - - - - - (181,591.14) (149,821.19) (6,279,793.51) (291,869.13)- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)10,765 - - - 29,817 33,001 2,091 (181,591) (149,821) (6,279,794) (291,869)Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -- - - - - - - (109,091.13) (122,647.48) (1,587,007.12) (84,347.97)- - - - - - - - - - -Total(B)- - - - - - - (109,091) (122,647) (1,587,007) (84,348)Total(A+B)10,765 - - - 29,817 33,001 2,091 (290,682) (272,469) (7,866,801) (376,217)stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2009109

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Enclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of Investments(Amount in Rs. '000)ParticularsEquity Equity Equity Equity Equity Equity Equity Equity Equity Group GroupIndex Index Index Index Pension Midcap Midcap Midcap Plus Plus Debt LiquidFund Fund - II Pension Fund Fund - II Fund Pension Fund Plus Fund Fund Pension Fund Fund FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - - - - - - - - (4,478.81) -- - - - - - - - - 5,144.69 -- - - - - - - - - 16,323.94 -(355,523.84) (5,811,634.01) (20,089.32) (484,937.08) (116,221.03) (7,287.30) (181,795.60) (236,377.34) 14,242.39 - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)(355,524) (5,811,634) (20,089) (484,937) (116,221) (7,287) (181,796) (236,377) 14,242 16,990 -Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -(102,471.80) (1,693,981.16) (6,241.99) (134,408.01) (9,161.07) (493.09) (13,767.23) (194,327.17) (8,645.77) - -- - - - 2,459.48 11.56 26.72 - - - -Total(B)(102,472) (1,693,981) (6,242) (134,408) (6,702) (482) (13,741) (194,327) (8,646) - -Total(A+B)(457,996) (7,505,615) (26,331) (619,345) (122,923) (7,769) (195,536) (430,705) 5,597 16,990 -stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2009(Amount in Rs. '000)ParticularsGroup ShortLife Liquid Liquid Premier Premier Premier Premier Premier Premier PureTerm Debt Long Pension Fund Bond Debt Equity Equity Equity Equity EquityFund Gain Fund Fund Fund Fund Fund Gain Fund Growth Fund Index Fund FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- (150.50) - - (739.56) (585.37) - - - 54.50 -(32.89) 461.69 - - 1,607.56 798.09 - - - - -(22.70) 3,516.23 - - 4,281.26 2,634.98 - - - - -- - - - - - 4,785.54 (2,383.02) (301,333.98) (270,829.12) (64,908.64)- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)(56) 3,827 - - 5,149 2,848 4,786 (2,383) (301,334) (270,775) (64,909)Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -- - - - - - (15,080.14) (11,820.73) (89,093.65) (72,048.32) (16,295.68)- - - - - - - - - - -Total(B)- - - - - - (15,080) (11,821) (89,094) (72,048) (16,296)Total(A+B)(56) 3,827 - - 5,149 2,848 (10,295) (14,204) (390,428) (342,823) (81,204)stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2009110

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Enclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of InvestmentsEnclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of InvestmentsParticulars(Amount in Rs. '000)PurePure Secure Stable GrandStock Stock Fund Fund TotalFund Pension FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - (484.32) (1,232.49) (30,623.01)- - 1,356.86 522.97 102,570.28- - 5,031.22 2,123.96 345,078.6239,066.93 484.02 (5,691.89) 635.95(15,194,332.33)- - - - -- - - - -- - - - -Total(A)39,067 484 212 2,050 (14,777,306)Corporate BondsInfrastructure BondsEquityMutual Fund- - - - -- - - - -(22,796.64) (51.89) 103.16 82.30 (4,400,864.56)- - - - 2,845.98Total(B)(22,797) (52) 103 82 (4,398,019)Total(A+B)Note: The above appreciation / depriciation is the difference between market value and the book cost of the istnvestment as at 31 March 200916,270 432 315 2,133 (19,175,325)111

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Appendix III Refer Schedule 16 Note 24Enclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of Investments(Amount in Rs. '000)ParticularsAcc Mid Cap Acc Mid Cap Accelerated Asset Assets Bond Bond Capital Capital Capital CashFund Pension Fund Allocation Allocation Bond Pension Guarantee Guarantee Guarantee FundFund Fund Pension Fund Fund Fund- 2012 Fund- 2014 Fund- 2017Government BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - 8 (9,772) (358) (1,581) (3) (88) 8 228 -23 5 35 (9,019) (87) (3,693) (154) 1,111 (4) (26) -- - (35) (16,228) (264) (2,106) 152 (11) 77 317 -(107,822) (12,833) 726 (416,546) (1,447) - - 821 184 1,729 -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)(107,799) (12,828) 734 (451,565) (2,156) (7,380) (5) 1,833 265 2,248 -Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -(7,884) 669 (46) (70,143) (25) - - 330 56 566 -61 - - 209 - - - - - - -Total(B)(7,823) 669 (46) (69,934) (25) - - 330 56 566 -Total(A+B)(115,622) (12,159) 688 (521,499) (2,181) (7,380) (5) 2,163 321 2,814 -stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2008(Amount in Rs. '000)ParticularsCashCash Debt Debt Debt Equity Equity Equity Equity Equity EquityPlus Plus Fund Plus Plus Fund Gain Growth Growth Index IndexFund Pension Fund Fund Pension Fund Fund Fund Pension Fund Fund Fund IIGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - 56 (1,987) (483) - - - - - -- - (1,523) (5,103) (173) - - - - - -- - (4,896) (2,444) 86 - - - - - -- - - - - 1,100,187 518,884 (963,658) (122,059) 337,457 (372,909)- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)- - (6,363) (9,534) (570) 1,100,187 518,884 (963,658) (122,059) 337,457 (372,909)Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -- - - - - 313,689 (54,768) (472,490) (52,151) 119,206 (97,079)- - - - - - 24 249 7 - -Total(B)- - - - - 313,689 (54,744) (472,241) (52,144) 119,206 (97,079)Total(A+B)- - (6,363) (9,534) (570) 1,413,876 464,140 (1,435,899) (174,203) 456,663 (469,988)stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2008112

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Appendix III Refer Schedule 16 Note 24Annual Report 2008-2009Appendix III Refer Schedule 16 Note 24Enclosure G : Fundwise and Classwise Appreciation/(Depreciation) in value of Investments(Amount in Rs. '000)ParticularsEquity Equity Equity Equity Group Life Liquid Liquid Mid Cap Mid Cap Mid CapIndex Index Pension Plus Plus Debt Long Fund Pension Fund Pension PlusPension Fund Fund II Fund Pension Fund Fund Gain Fund Fund Fund FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks- - - - - (6) - - - - -- - - - - (137) - - 17 3 29- - - - - (862) - - - - -25,573 (61,359) 785,192 20,941 - - - - (30,064) (6,877) (12,908)- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)25,573 (61,359) 785,192 20,941 - (1,005) - - (30,047) (6,874) (12,879)Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -8,592 (15,118) (223,725) 8,831 - - - - 5,662 1,911 17,192- - 211 - - - - - 17 - 55Total(B)8,592 (15,118) (223,514) 8,831 - - - - 5,679 1,911 17,247Total(A+B)34,165 (76,477) 561,678 29,772 - (1,005) - - (24,368) (4,963) 4,368stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2008(Amount in Rs. '000)ParticularsPremier Premier Premier Premier Premier Premier Pure Pure Secure Stable TotalBond Debt Equity Equity Equity Equity Equity Stock Fund FundFund Fund Fund Gain Fund Growth Fund Index Fund Fund FundGovernment BondsCorporate BondsInfrastructure BondsEquityMoney MarketMutual FundDeposit with Banks38 8 - - - - - - (254) 93 (14,093)(65) (718) - - - - - - 42 (496) (19,933)(344) (527) - - - - - - (434) (401) (27,920)- - 5,755 20,179 (150,746) 19,978 71,203 (11,127) (672) (30,030) 607,752- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -Total(A)(371) (1,237) 5,755 20,179 (150,746) 19,978 71,203 (11,127) (1,318) (30,834) 545,806Corporate BondsInfrastructure BondsEquityMutual Fund- - - - - - - - - - -- - - - - - - - - - -- - 2,492 (34,738) (23,182) 13,585 29,129 745 (112) (3,644) (532,450)- - - - 3 - - - - - 836Total(B)- - 2,492 (34,738) (23,179) 13,585 29,129 745 (112) (3,644) (531,614)Total(A+B)(371) (1,237) 8,247 (14,559) (173,925) 33,563 100,332 (10,382) (1,430) (34,478) 14,192stNote: The above appreciation / depriciation is the difference between market value and the book cost of the investment as at 31 March 2008113

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001Receipts and Payments Account (Cash Flow Statement)for the Period ending 31st March 2009(Amount in Rs. '000)Particulars Current Year Previous YearCash Flow from Operating ActivitiesReceipts from customers- Premium Income 106,026,241 97,167,145- Premium & Other Deposits (795,883) 247,202105,230,358 97,414,347Other IncomeInterest on overdue premium 40,389 29,879Unit linked fund administration / management charges 1,813,022 1,351,685Others 90,698 87,7631,944,109 1,469,327Cash generated from operations 107,174,467 98,883,675Cash paid towards Operating ActivitiesCommission (9,592,609) (15,057,592)Claims (7,530,565) (8,408,714)Other Expenses (18,139,198) (19,795,499)Direct Taxes Paid (91,356) (100,075)Change in Working Capital (3,107,138) 1,275,145(38,460,866) (42,086,736)Cash flow before extraordinary item 68,713,601 56,796,939Extraordinary Item - -Net cash from Operating Activities ( A ) 68,713,601 56,796,939Cash Flow from Investing ActivitiesPurchase of Fixed Assets (763,461) (781,566)Purchase of Investments (Shareholders & Policy Holders) (111,968,837) (102,056,655)Net Increase/Decrease in Unit Link Investments (65,833,014) (53,021,687)(178,565,312) (155,859,907)Investment Income (Shareholders & Policyholders) 2,282,966 1,348,942Sale of Investment (Shareholders & Policyholders) 107,003,320 91,787,225Sale of Fixed Assets 2,015 2,067109,288,300 93,138,234Net cash from investing activities ( B ) (69,277,012) (62,721,673)Cash Flow from Financing activitiesProceeds from Issuance of Share Capital - 3,410Share Premium received on issuance of Share Capital - 5,097,950- 5,101,360Net cash from Financing Activities ( C ) - 5,101,360Net increase in Cash & Cash Equivalents (D = A + B + C ) (563,411) (823,374)Cash & Cash equivalents at the beginning of the Year 3,321,003 4,144,377Cash & Cash Equivalents at the end of the Period 2,757,592 3,321,003Components of cash & cash equivalentsCash and Bank Balances ( as per Sch 11) 3,552,963 3,730,894Temporary overdraft (as per Sch 13 ) (795,371) (409,891)2,757,592 3,321,003As per our report of even date attachedFor Dalal & Shah For B S R & Co For Bajaj Allianz Life Insurance Company LimitedChartered Accountants Chartered AccountantsAnish Amin Juzer Miyajiwala Rahul Bajaj Kamesh Goyal Niraj BajajPartner Partner Chairman Alternate Director and DirectorMembership No. 40451 Membership No. 47483 Chief Executive OfficerSanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &CompliancePlace : PunethDate : 11 May 2009114

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDBalance sheet abstract and Company's general business profileAnnual Report 2008-2009Balance sheet abstract and Company's general business profileI. Registration DetailsRegistration No.State Code15959 25CINU66010PN2001PLC015959Balance Sheet Date31 03 2009Date Month YearII.Capital raised during the year (Amount in Rs '000)Public IssueRights Issue- -Bonus IssuePrivate Placement- -III.Position of mobilisation and deployment of funds (Amount in Rs '000)Total LiabilitiesTotal Assets175,788,114 175,788,114IVSource of Funds (Amount in Rs '000)Paid-up CapitalReserves and Surplus (shareholders)1,507,090 10,599,550Secured LoansNilUnsecured LoansNilPolicyholders fundsOthers163,681,474 NilVApplication of Funds (Amount in Rs '000)Net Fixed AssetsInvestments1,644,417 171,565,360Net Current AssetsMiscellaneous Expenditure(3,104,479) NilAccumulated loss (Shareholders)Others5,605,846 76,970VI.Performance of Company (Amount in Rs '000)TurnoverTotal Expenditure- -Profit/Loss before taxProfit/Loss after tax(706,727) (706,812)Accumulated Profits-Earnings per share Dividend rate (%)(4.69) NilNote: Being a life insurance company there is no turnover.115

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITEDrdIRDA Registration No. 116 dated 3 August, 2001100Balance sheet abstract and Company's general business profileVII.Generic Names of Principal Products/Services of CompanyItem code no (ITC code) -Product descriptionLife Insurance BusinessNote:The Company being a life insurance company the accounts of the Company are not required to be made in accordance with ScheduleVI. Further, the Insurance Act, 1938, requires the accounts of the Company to be split between Policyholders' & 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 LimitedRahul Bajaj Kamesh Goyal Niraj BajajChairman Alternate Director and DirectorChief Executive OfficerSanjiv Bajaj S. H. Khan Ranjit GuptaDirector Director DirectorSanjay Asher Suraj Mehta Manu TandonDirector Director DirectorRajesh Viswanathan Anil Singh Sameer BakshiChief Financial Officer Appointed Actuary Company Secretary &Head - Legal &CompliancePlace : PunethDate : 11 May 2009116

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED Annual Report 2008-2009Notes

Bajaj Allianz Life Insurance Co. Ltd.GE Plaza, Airport Road, Yerawada, Pune 411006.www.bajajallianzlife.co.inInsurance is the subject matter of the solicitationBJAZ-O-0124/10-Jul-09