Notes to Accounts of General Insurance Corporation of India

Mar 31, 2024

15. PROVISIONS AND CONTINGENCIES

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Losses arising from claims other than insurance claims under policies, litigation, assessment, fines, penalties, etc. are recorded as a disclosure made when there is a possible obligation, but probably will not require an outflow of resources.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote or cannot be ascertained, no provision or disclosure is made.

Contingent asset are neither recognised nor disclosed in the financial statements.

16. CATASTROPHE RESERVE

Catastrophe Reserve is created by appropriation of 10 % of Operating profits of Revenue Accounts in respect of Fire, Marine and Miscellaneous business. This reserve forms part of Policyholders'' Funds and is reflected in Schedule 6-Reserves & Surplus, of the balance sheet as per IRDAI format.

II. NOTES FORMING PART OF THE ACCOUNTS:

The Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 have been adopted for presentation of the accounts.

> INVESTMENTS

1. (a) Out of Investment held in Shares, Debentures & Venture Capital Fund of the value of '' 792,308,039 thousands (Previous

Year '' 636,637,689 thousands) no confirmations or other documentary evidence was available regarding actual custody for

(i) Investments in debenture of 16 Scrip of the value as per Books amounting '' 6,589 thousands (Previous year '' 6,589 thousands), (The Corporation has fully provided for these amounts in earlier years)

(ii) Investments in Preference shares of five Scrip of the value as per Books amounting '' 0.004 thousands (Previous year '' 0.004 thousands) (Four Scrip Written down to '', 1/- and One Scrip Written Down to Zero in earlier years)

(b) The Investments actually held by the Custodian of the Corporation is in excess of the number held as per the books of the Corporation.

(i) A bond having value as per Books of Accounts amounting to ''1,300 thousands (previous year ? 1,300 thousands)

(ii) One Preference Shares having value as per Books of Accounts of ? 0.001 thousands (previous year ? 0.001 thousands) (One Scrip Written down to ? 1 in the Previous Year)

(c) During the year there were receipts of Excess Dividends of '' 1,360 thousands (Previous Year '' 158 thousands), Excess Profits '' NIL (Previous Year '' NIL) and Excess Interests '' NIL (Previous Year '' NIL). The excess dividend balance as on 31.3.2024 amounts to '' 2,795 thousands (Previous Year '' 1,436 thousands). The interest received on the excess Bonds / Debentures and profit on excess equity / debentures as on 31^st March 2024 amounts to '' NIL (Previous Year '' NIL) & '' NIL (Previous Year '' NIL). This excess dividend is shown as Liability.

2. (a) Provision includes provision for standard assets @ 0.40% as per IRDAI-Prudential norms for Income recognition, Asset

Classification and provisioning and other related methods in respect of debt portfolio amounting to '' 741,375 thousands (Previous Year '' 592,243 thousands).

(b) During the year, the Corporation has not undertaken under CDR (Corporate Debt Restructuring) System, any case of restructuring of corporate debt/loan. (Previous Year NIL)

(c) The Corporation has considered latest available NAV for the provisioning of units of venture capital. The details of latest available NAV considered are as follows:

5. There is no difference between title of ownership in respect of CGS/SGS/ bonds/debentures etc. available in physical/demat format vis-a-vis shown in books of accounts except for the differences pointed out in Point No 1.

6. As at 31^st March 2024, all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India Stock, 8.24% 2027 for ? 78,500 thousand, 8.60% 2028 for ? 2,000 thousands, 6.19 % 2034 for ? 50,000 thousands, 7.54 % 2036 for ? 200,000 thousands, 7.10 % 2029 for ? 100,000 thousands, 7.41 % 2036 for ? 100,000 thousands, 7.26 % 2032 for ? 100,000 thousands, 7.18 % 2037 for ? 400,000 thousands, total amounting to ? 1,030,500 thousands (Previous year total amounting to ? 630,500 thousands) and cash deposit of ? 8,600 thousands (Previous year 8,600 thousands) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

Out of the Cash Deposit, '' 1,500 thousands is maintained as Cash collateral Deposit towards Triparty Repo Default fund (Previous year total amounting to '' 1,500 thousands) and '' 800 thousands towards Securities Default fund (Previous year total amounting to '' 800 thousands).

(b) (i) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has assigned

a Government of India security 7.10% 2029 amounting to ? 400,000 thousands (Previous year Government of India security 6.30% 2023 amounting to ? 300,000 thousands and 7.10% 2029 amounting to ? 400,000 thousands total amounting to ? 700,000 thousands) as Pledge towards Margins in cash segments. This Pledge covers margin obligations arising out of trades done in NSE & BSE.

(b) (ii) Margin FDR of '' 500 thousands (Previous year ''500 thousands) against Bank Guarantee to Municipal Corporation of Greater Mumbai (MCGM) to undertake development activities at plot bearing CTS.NO.1606OF Fort Division measuring 1844.40 sq. meter.

(c) GIC Re got registered as an Admitted Reinsurer in Brazil in April 2020. As a prerequisite of being recognised as an Admitted Reinsurer, GIC Re had opened a Representative Office in Brazil and also opened a bank account with BNP Paribas Brazil and a deposit of USD 5000 Thousands was being maintained therein since then.

However, following some regulatory changes in Brazil, the Admitted Reinsurers in Brazil soon lost any substantial advantage vis-a-vis Occasional Reinsurers, while the administrative & compliance requirements, and therefore costs, of being an Admitted Reinsurer were higher.

In view of the same, a decision was taken by GIC Re to revert to the status of Occasional Reinsurer and following various procedural requirements, SUSEP, the Brazilian regulator, in October 2023, has converted our status back to Occasional Reinsurer. Following this development, to maintain the said foreign currency account in Brazil and to have the Representative Office in Brazil no longer remain regulatory requirements. Consequently, the bank account with BNP Paribas Brazil has been closed and USD 5,000 thousands has been transferred back to the Corporation''s account in India. The process of closure of the Representative Office in Brazil is underway.

(d) Margin FDR held by Bank for issue as LC/BG of '' 76,777,854 thousands (Previous year '' 94,547,286 thousands).

7. The Commitments made and outstanding for Loans, Investments and Fixed Assets (if any) as at 31^st March 2024 are '' 62,568 thousands (Previous year '' 113,675 thousands).

8. Value of contracts in relation to investments, for

a) Purchases, where deliveries are due and pending '' NIL (Previous year '' NIL).

b) Sales, where payments are overdue '' NIL (Previous year '' NIL).

9. The Book Value of Investments valued on Fair Value basis is Equity '' 131,108,361 thousands (Previous year '' 124,368,329 thousands) & Mutual Funds '' 10,700,171 thousands (Previous year '' 7,751,454 thousands). For some Actively traded shares falling under "Fair value Depreciation" category, an amount of '' 6,698,961 thousands (Previous Year '' 15,437,414 thousands) is considered under "Provision for Diminution of Listed equity shares" category.

10. The basis of amortization of debt securities is as stated in Significant Accounting Policy No.9.14.

11. The Corporation does not hold any properties for investment purposes.

12. Provisions regarding unrealized gains/losses have been stated in the Significant Accounting Policy No. 9.7.

13. '' 1,088 thousands (Previous Year ''1,088 thousands) is placed in a Liquidation fund for GIC AMC. This is to be retained till 31.12.2024.

14. Interest, Dividend and Rent income is net of Investment expenses of ''55,280 thousands (previous year '' 59,732 thousands).

15. A Provision has been made for '' 13,712,313 thousands (Previous year ''15,387,536 thousands) towards Non-Performing Assets (Other than Standard Assets). Therefore, there is reversal of provision accounted during the year is '' 1,675,223 thousands (Previous year reversal of provision is '' 648,704 thousands).

16. During the Financial year 2021-22 the Corporation has made changes in significant accounting policies with respect to impairment loss (i.e., other than temporary diminution in value) in accordance with the applicable provisioning of diminution in value of equity as per clause 2.8 of IRDAI Master Circular on Preparation of Financial Statements General Insurance Business, October 2012 resulting into valuation of equity shares at market price on balance sheet date.

However due to valuation changes, during the year, a sum of '' 8,738,453 thousands (Previous Year '' 357,465 thousands as expenses) has been recognized as income in the profit and loss account resulting in increase in profit to the extent of '' 8,738,453 thousands (Previous Year '' 357,465 thousands as an expense).

In absence of the required field under Revenue Account as per format advised by IRDAI, apportionment of '' 8,738,453 thousands as income (Previous Year '' 357,465 thousands as expenses) between profit & loss and revenue account has not been done. Out of '' 8,738,453 thousands (Previous Year '' 357,465 thousands as an expense), an amount of '' 6,079,217 thousands (Previous

Year '' 253,764 thousands) pertain to Revenue account (policyholder''s fund) and '' 2,659,236 thousands (Previous Year '' 103,701 thousands) pertains to Profit & loss account (Shareholder''s fund).

Reinsurance

17. Underwriting of Direct business stopped from 1^st April 2001. Figures included in Revenue Accounts Pertaining to direct business (if any) are on account of run-off business. Run-off liabilities are sufficiently provided for based on advice received.

18. Premiums, less reinsurance, written from business during the financial year 2023-24 in India are: '' 233,892,827 thousands (Previous year '' 232,947,051 thousands) and outside India are '' 105,665,120 thousands (Previous year '' 103,497,226 thousands).

19. Incremental Provision in URR, for 31.3.2024, in respect of long-term Facultative Policies. - NIL (Previous year '' 379,557 Thousands). Estimation policy has been changed and corporation does not provide for additional URR.

20. Claims less reinsurance during the financial year 2023-24 paid in India are:

'' 159,523,697 thousands (Previous year '' 175,863,074 thousands) and outside India are '' 107,250,196 thousands (Previous year '' 88,800,715 thousands).

21. Segment Reporting

Segment Reporting as per Accounting Standard -17 "Segment Reporting" of ICAI, has been complied with as required by IRDAI (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002.

Line of Business wise Segment Revenue Reporting for the year ended 31.03.2024

23. The Corporation being a reinsurance company does not settle claims directly with the insured. The companies after settling the claims with their insured would recover the claims from the Corporation as per the reinsurance obligations. Such recoveries are settled with the companies through periodical account statements. Claims settled and remaining unpaid for a period of more than six months as on 31.03.2024 '' NIL (Previous Year NIL).

24. (a) Corporation has put in place system of continuous reconciliation and monitoring of balances and reserve deposits on an

ongoing basis with persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of '' 1 1,130,137 thousands (Previous year '' 11,306,742 thousands) for doubtful receivables.

(b) The balances of amount due to/from and the deposits kept with other persons/bodies carrying on insurance business are subject to confirmation/reconciliation. The Company has initiated a detailed process to match confirmations with the books and balance confirmations are marked for majority of the balances. Adjustments, if any for unconfirmed balances will be accounted for on receipt /confirmation/reconciliation of the same after due examination.

(c) The Corporation has also provided a provision on doubtful debts on sundry debtors outstanding for more than 1 year as on 31.03.2024 amounting to '' 24,450 thousands (Previous year '' 13,066 thousands.).

(d) Total assets pertaining to foreign business is ? 213,428,882 Thousands (Previous year ? 219,035,157 thousands) and Total Liabilities pertaining to foreign business is ? 371,485,783 Thousands(Previous year ? 369,990,848 thousands).

(e) Total amount receivable and payable in Foreign Currency and their corresponding INR as on 31.03.2024.

The company has no forward contact against the foreign exposure. To limit the risks of adverse exchange rate movement, GIC maintains 3 major currency (Euro, USD & GBP) bank accounts in London. All settlement takes place through these bank accounts. All foreign currency receipts and payments to be done through these bank accounts. Payment related to Euro, USD & GBP done through respective currency bank accounts. For Other currencies, mostly settlement happen through USD Bank accounts. Thus liabilities and bank balances are maintain in same currency. Amount in Foreign Currency to be transferred only if there is shortage of funds in overseas bank for regular payments which is rare case.FDs placed with Foreign branches are for less than 90 days.

25. Creation of a CAT reserve is an accepted method to handle future volatility in claims, and to introduce a factor of stability in the financial results. The reserve can make a significant contribution to reducing financial vulnerability in future. This reserve is broadly intended to be utilised towards meeting large catastrophe losses against the insurance policies in force.

27. Life Reinsurance Business:

During the year, the Corporation has made a provision of '' 4,587,754 thousands (Previous Year made provision of '' 3,222,238 thousands) towards net unexpired premium reserve for life business as determined by Life Appointed Actuary, as per IRDAI guidelines.

28. The estimate of claims Incurred but Not Reported [IBNR] claims have been certified by the Company''s Appointed Actuary. The Appointed Actuary has certified to the Company that the assumptions used for such are appropriate and are in accordance with the requirements of the Insurance Regulatory and Development Authority of India [IRDAI] and Institute of Actuaries of India in concurrence with IRDAI.

The IBNR provision for Life Re business is certified by the Appointed Actuary - Life Re. The IBNR has been calculated using triangulation method for domestic business (except for non-proportional business) and for Overseas Group Credit Business.

For all other overseas business (proportional and non-proportional) and domestic non-proportional business, delay days method has been used

29. (a) The details on account of revaluation included in the net Outstanding Loss Reserves (OSLR) at the end of the year

are as under.

Basic earnings per share are calculated by dividing the profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equities shares outstanding during the year. For the purpose of calculating diluted earnings per share, the profit or loss after tax for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Dilutive potential equity shares are determined independently for each period presented.

The face value of equity share is consolidated from '' 1 to '' 5 per share. Accordingly, the Earning Per Share, Book Value per share and Dividend per share is based on the face value of '' 5 per share. During the Year ended 31.03.2019, the Corporation has issued bonus shares in the ratio of 1:1. Accordingly the Earning Per Share, Book Value per share and Dividend per share is based on the increased number of shares.

42. The Corporation''s office premises are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing agreements are in respect of operating lease for premises. Aggregate lease rentals amounting to '' 34,841 thousands (Previous year '' 25,749 thousands) are expected to be paid under operating lease in less 12 months from 31^st March 2024.

As per AS-19 related to Lease, GIC Re is not required make any disclosure under AS-19.

43. Taxation

Disclosures as per Accounting Standard - 22 "Accounting for Taxes on Income":

46. Contingent Liabilities:

(a) Partly Paid-up investments'' 62,568 thousands (Previous year ? 113,675 thousands)

(b) Underwriting commitments outstanding '' NIL (Previous year NIL)

(c) Claims, other than those under policies not acknowledged as debts '' 6,186 thousands (Previous year '' 6,186 thousands)

(d) Guarantees / LC given by or on behalf of the Corporation '' 3,583,851 (Previous year '' 93,800,807 thousands)

The corporation has provided Letter of Credit/ Bank Guarantee amounting to ? 76,521,157 thousands against 100% Margin in form of Term deposits with banks, towards outstanding losses, unearned premium reserve, balances payable etc., to various business partners towards various treaties. During the year the Corporation has provided for all liabilities in respect of Letter of Credit/ Bank Guarantee in its books amounting to ? 72,937,306 therefore, this amount has not been shown as Contingent Liabilities.

(e) Statutory demand / liabilities in dispute - Income-tax demands disputed, not provided for '' 224,909,191 thousands (Previous year '' 86,918,929 thousands).

> GENERAL

48. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation has identified Micro, Small and Medium Enterprises as defined in above referred act. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

49. Corporate Social Responsibility (CSR):

As per Section 135 of the Companies Act, 2013, General Insurance Corporation of India was required to spend an amount of ''798,795 thousand for the financial year 2023-24 towards Corporate Social Responsibility. During the financial year 2023-24, an amount of ''161,037 thousand has been spent. The projects are in different stages of implementation. The total unspent amount as on 31.03.2024 is '' 637,758 thousand pertaining to on-going projects. This unspent amount has been transferred to a separate bank account to be utilized in the next three financial years.

50. Regarding the collection of shortfall premium, the recovery from the concerned broker stands at USD 391,131 ('' 32,600 thousands at current rate of exchange) as on 31.03.2024 (Previous year USD 391,131 ('' 32,104 thousands at rate of exchange as on 31.03.2023). Previous year outstanding premium recovery as on 31.03.2023 is USD 121,835.15 ('' 10,154 thousands at rate of exchange as on 31.03.2024).

(ROE 1 USD = 83.35 INR)

51. There are no Material Changes and Commitments Affecting the Financial Position of The Company (Including branches) occurring after the Balance sheet data (Previous Year Nil).

52. GIC Re Dubai branch continues to be in run-off operations since July 2021 and is presently servicing the accounting and claims of contracts underwritten in previous years prior to run-off. The business previously underwritten by Dubai branch is now being handled by GIFT City branch in India. Application for portfolio transfer of the open balances of Dubai branch to Gift City branch and eventual de-registration of Dubai branch has been filed with the UAE regulator and correspondence in this regard is in progress.

53. During the previous financial year 2022-23, the rating provided by M/s AM Best for Financial Strength Rating (FSR) was ''B (Good)'' and Long-Term Issuer Credit Rating (ICR) was ''bbb (Good)'' with ''Stable'' outlook for FSR and ''Negative'' outlook for Long-Term ICR. During the current financial year 2023-24, the Financial Strength Rating (FSR) of ''B (Good)'' and the Long-Term Issuer Credit Rating (ICR) of ''bbb (Good)'' were reaffirmed and the outlook of both the FSR and ICR were revised to ''Positive''. Also, a NSR (National scale rating) of aaa.IN (Exceptional) with outlook as ''Stable'' was assigned.

54. As per the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 the corporation is required to prepare Receipts and Payment Accounts in accordance with the Direct Method prescribed in AS -3 "Cash Flow Statement" issued by the ICAI. However, the Corporation has prepared Receipts and Payment Accounts (Cash flow statement) in accordance with Indirect Method due to process followed of Net Settlement in Reinsurance business.

55. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

56. IRDAI had issued circular on methodology for accounting of premium on June 15, 2022, and the same is applicable from the current financial year (2023-24). Pursuant to this the corporation has revised the method of accruing premium for treaties where statement of accounts are not received from ceding companies and the same was implemented effective from Quarter Ending 30.06.2023. The method of accrual was earlier based on proportionate estimate premium for cumulative period which is now changed to accrual of premium for last quarter only. The comparative figure for estimate versus actual will be available from next financial year.

57. The corporation has not invested policyholder''s funds outside India in compliance of section 27E of Insurance Act 1938.

58. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

59. The Accounting Ratios of the Corporation are stated in Annexure II.

60. Figures relating to the previous year have not been regrouped / rearranged.

As per our report of even date

For K A S G & CO For MEHRA GOEL & Co N. Ramaswamy

Chartered Accountants Chartered Accountants Chairman and Managing Director

Firm Regn No. 002228C Firm Regn No. 000517N DIN 10337640

CA Bharat Goel CA Vaibhav Jain T. Sivakumar V. Balkrishna

Partner Partner Director CFO

Membership No.:060069 Membership No.:515700 DIN 09450908

Suresh Savaliya

Mumbai Company Secretary

Dated: 28.05.2024 Membership Number A15545

Mar 31, 2023

II. NOTES FORMING PART OF THE ACCOUNTS

> Investments

1. (a) Out of Investment held in Shares, Debentures & Venture Capital Fund of the value of ? 636,914,712 thousands (Previous year

? 596,677,085 thousands) no confirmations or other documentary evidence was available regarding actual custody for;

(i) Investments in debenture of 16 Scrip of the value as per Books amounting ? 6,589 thousands (Previous year ?6,589 thousands), (The Corporation has fully provided for these amounts in earlier years).

(ii) Investments in Preference shares of five Scrip of the value as per Books amounting ? 0.004 thousands (Previous year ? 0.004 thousands) (Four Scrip Written down to ? 1/- and One Script Written Down to Zero in earlier years)

(b) The Investments actually held by the Custodian of the Corporation is in excess of the number held as per the books of the Corporation.

(i) A Bonds having value as per Books of Accounts amounting to ?1,300 thousands (Previous year ? 1,300 thousands)

(ii) One Preference Shares having value as per Books of Accounts of ? 0.001 thousands (Previous year ? 0.001 thousands) (One Scrip Written down to ? 1 in the Previous year)

(c) During the year there were receipts of Excess Dividends of ? 1,436 thousands (Previous year ? 1,413 thousands), Excess Profits ? NIL (Previous year ? 45 thousands) and Excess Interests ? NIL (? 15 thousands). The excess dividend balance as on 31.3.2023 amounts to ? NIL (Previous year ?1277 thousands). The interest received on the excess Bonds/Debentures and profit on excess equity/debentures as on 31^st March 2023 amounts to ? NIL (Previous year ? NIL) & ? NIL (Previous year ? NIL). This excess dividend is shown as Liability.

2. (a) Provision includes provision for standard assets @ 0.40% as per IRDAI-Prudential norms for Income recognition, Asset Classification

and provisioning and other related methods in respect of debt portfolio amounting to ? 592,243 thousands (Previous year ? 538,671 thousands).

(b) During the year, the Corporation has not undertaken under CDR (Corporate Debt Restructuring) System, any case of restructuring of corporate debt/loan. (Previous year NIL)

(c) The Corporation has considered latest available NAV for the provisioning of units of venture capital. The details of latest available NAV considered are as follows:

NAV as on	No. of Venture Capital Funds
31^st December 2022	2
30^th September 2022	1
31^st March 2022	9
31^st March 2023	2
Nil NAV	7
At Par	1
Total	22

3. For valuation of actively traded equity shares, 31^st March 2023, has been considered as closing day.

5. There is no difference between title of ownership in respect of CGS/SGS/bonds/debentures etc. available in physical/demat format

vis-a-vis shown in books of accounts except for the differences pointed out in Point No 1.

6. As at 31^st March 2023, all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India Stock, 8.24% 2027 for ?171,000 thousands, 8.60% 2028 for ?2,000 thousands, 6.19 % 2034 for ?50,000 thousands, 6.64 % 2035 for ? 100,000 thousands, 7.54 % 2036 for ? 200,000 thousands, 8.33% 2026 for ?20,000 thousands, 8.28% 2027 for ?17,500 thousands, 7.95% 2032 for ?40,000 thousands, 6.67% 2035 for ? 30,000 thousands total amounting to ? 630,500 thousands (Previous year total amounting to ? 480,500 thousands) and cash deposit of ? 8,600 thousands (Previous year ? 8,600 thousands) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

Out of the Cash Deposit, ? 1,500 thousands is maintained as Cash collateral Deposit towards Triparty Repo Default fund (Previous year total amounting to ? 1,500 thousands) and ? 800 thousands towards Securities Default fund (Previous year total amounting to ? 800 thousands).

(b) (i) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has assigned a Government of India security 6.30% 2023 amounting to ? 300,000 thousands (Previous year Fixed Deposits amounting to ? 300,000 thousands) and 7.10% 2029 amounting to ? 400,000 thousands (Previous year NIL) total amounting to ? 700,000 thousands as Pledge towards Margins in cash segments. This Pledge covers margin obligations arising out of trades done in NSE & BSE.

(b) (ii) Margin FDR of ? 500 thousands (Previous year ?525 thousands) against Bank Guarantee to Municipal Corporation of Greater Mumbai (MCGM) to undertake development activities at plot bearing CTS.NO.1606OF Fort Division measuring 1,844.40 sq. meter.

(c) As per SUSEP Resolution CNSP No. 330 of 2015, Article 13, foreign reinsurers shall have account in foreign currency in BRAZIL with SUSEP in bank authorized to operate with exchange in the country with minimum balance in cash for guarantee of its operations in the country in the amount of US$ 5,000 thousands or comparable in another foreign currency of free translation for reinsurers acting in the field of damages and lives.

Further as per SUSEP Circular No. 527 of February 2016, Article 4 (I) the registration of the admitted reinsurer may be granted after the submission and analysis of evidence of foreign currency account, linked to SUSEP, in a bank authorized to deal in a foreign exchange within the country with a minimum balance of US$ 5,000 thousands or equivalent in another free convertible foreign currency for reinsurers operating in all lines.

Accordingly, GIC Re has opened a bank account in BNP Paribas Brazil and deposited an amount of US$ 5,000 thousands (Previous year US$ 5,000 thousands)

(d) Margin FDR held by Bank for issue as LC/BG of ? 94,547,286 thousands (Previous year ? 77,542,036 thousands).

7. The Commitments made and outstanding for Loans, Investments and Fixed Assets (if any) as at 31^st March 2023 are ? 113,675 thousands (Previous year ? 248,432 thousands).

8. Value of contracts in relation to investments, for

a) Purchases, where deliveries are due and pending NIL (Previous year NIL).

b) Sales, where payments are overdue NIL (Previous year NIL).

9. The Book Value of Investments valued on Fair Value basis is Equity ? 124,368,329 thousands (Previous year ? 113,598,241 thousands) & Mutual Funds ? 7,680,200 thousands (Previous year ? 4,199,999 thousands). For some Actively traded shares falling under "Fair value Depreciation" category, an amount of ? 17,261,537 thousands (Previous year ? 15,079,948 thousands) is considered under "Provision for Diminution of Listed equity shares" category.

10. The basis of amortization of debt securities is as stated in Significant Accounting Policy No. 9.4.

11. The Corporation does not hold any properties for investment purposes.

12. Provisions regarding unrealized gains/losses have been stated in the Significant Accounting Policy No. 9.7.

13. ? 1,088 thousands (Previous year ? 1,088 thousands) is placed in a Liquidation fund for GIC AMC. This is to be retained till 31.12.2023.

14. Interest, Dividend and Rent income is net of Investment expenses of ? 59,732 thousands (Previous year ? 62,537 thousands).

15. A Provision has been made for ? 15,387,536 thousands (Previous year ? 16,036,240 thousands towards Non-Performing Assets (Other than Standard Assets). Therefore, there is reversal of provision accounted during the year is ? 648,704 thousands (Previous year incremental provision ? 1,773,018 thousands).

16. During the Previous year the Corporation has made changes is significant accounting policies with respect to impairment loss (i.e., other than temporary diminution in value) in accordance with the applicable provisioning of diminution in value of equity as per clause 2.8 of IRDAI Master Circular on Preparation of Financial Statements General Insurance Business, October 2012 resulting into valuation of equity shares at market price on balance sheet date.

Consequently, a sum of ? 357,465 thousands (Previous year ? 15,079,949 thousands) has been recognized as expense in the profit and loss account resulting in reduction of profit to the extent of ? 357,465 thousands (Previous year ? 15,079,949 thousands). Apportionment of ? 357,465 thousands (Previous year ? 15,079,949 thousands) between profit & loss and revenue account has not been done in absence of the required field under Revenue Account as per format advised by IRDAI. Out of ? 357,465 thousands (Previous year ? 15,079,949 thousands), an amount of ? 253,764 thousands (Previous year ? 11,61 1,236 thousands) pertain to Revenue account (policyholder''s fund) and ? 103,701 thousands (Previous year ? 3,468,713 thousands) pertains to Profit & loss account (Shareholder''s fund).

17. Provisioning for IIFCL Mutual Fund (IDF) Series II

The Corporation has total exposure by way of investments in IIFCL Mutual Fund (IDF) Series II amounting to ? 179,017 thousands as on 31^st March 2023. GIC Re''s Book value is ? 179,017 thousands as against Nominal value of ? 200,000 thousands in IIFCL. The NAV of Series II has been on a declining trend since March 2019 and stood at ? 8,95,084.44 per unit as on 31.03.2023. IIFCL Board of Trustees have decided to prematurely wind-up existing schemes (Scheme I & II) to avoid being non-compliant with SEBI regulations. As per recent communication from IIFCL on 17.5.2023, the NAV as on 30.4.2023 stood at ? 9,00,954.24 per unit as on 30.4.2023. The Corporation has made a provision of ? 19,800 thousands in IIFCL Mutual Fund (IDF) Series II based on NAV as on 30.4.2023. The above provision, in the opinion of the management is considered appropriate and is made as per the Prudential Norms for Income, Recognition, Asset Classification and Provisioning issued by RBI and IRDAI.

Reinsurance

18. Underwriting of Direct business stopped from 1^st April 2001. Figures included in Revenue Accounts Pertaining to direct business (if any) are on account of run-off business. Run-off liabilities are sufficiently provided for based on advice received.

19 Structured solution cover

The Structured Solutions Reinsurance Contract covering risk from various class of business was in place for the years from June 2014 to May 2020 as per agreed terms and conditions. After notice of cancellation by IRDAI as at 31.5.2021, the contract has been cancelled during the period 2021-22. Consequently, complying the condition of the contract and after having obtained due confirmation from Reinsurer, the Corporation had booked profit commission of ? 12,409,926 thousands (including prior period profit commission of ? 729,910 thousands) in the previous financial year 2021-22 and released the reinsurers of remaining Outstanding Claims liabilities to the extent of ? 5,294,389 thousands. For the period 2022-23 there are NIL entries.

20. Premiums, less reinsurance, written from business during the financial year 2022-23 in India are: ? 232,947,051 thousands (Previous year ? 246,453,546 thousands) and outside India are ? 103,497,226 thousands (Previous year ? 141,536,746 thousands).

21. Incremental Provision in URR, for 31.3.2023, in respect of long-term Facultative Policies. -

Whilst on above, for long-term Facultative policies, where the Premium income is spread over a period covering more than 2 accounting years, URR has been provided using 1/365 days basis.

22. Claims less reinsurance during the financial year 2022-23 paid in India are:

? 175,863,074 thousands (Previous year ? 210,503,658 thousands) and outside India are ? 88,800,715 thousands (Previous year ? 100,219,684 thousands).

23. Segment Reporting as per Accounting Standard -17 "Segment Reporting" of ICAI, has been complied with as required by IRDAI (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002.

Line of Business wise Segment Revenue Reporting for the year ended 31.03.2023

24. Ageing of claims - Distinguishing between claims outstanding for different periods:

The Corporation being a reinsurance company does not settle claims directly with the insured. The companies after settling the claims with their insured would recover the claims from the Corporation as per the reinsurance obligations. Such recoveries are settled with the companies through periodical account statements.

26. (a) Corporation has put in place system of continuous reconciliation and monitoring of balances and reserve deposits on an

ongoing basis with persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of ? 11,306,742 thousands (Previous year ? 7,994,203 thousands) for doubtful receivables.

(b) The balances of amount due to/from and the deposits kept with other persons/bodies carrying on insurance business are subject to confirmation/reconciliation. The Company has initiated a detailed process to match confirmations with the books and balance confirmations are marked for majority of the balances. Adjustments, if any for unconfirmed balances will be accounted for on receipt/confirmation/reconciliation of the same after due examination.

(c) The Corporation has also provided a provision on doubtful debts on sundry debtors outstanding for more than 1 year as on 31.03.2023 amounting to ? 13,066 thousands (Previous year ? 6,740 thousands.).

27. Creation of a CAT reserve is an accepted method to handle future volatility in claims, and to introduce a factor of stability in the financial results. The reserve can make a significant contribution to reducing financial vulnerability in future. This reserve is broadly intended to be utilised towards meeting large catastrophe losses against the insurance policies in force.

29. Life Reinsurance Business

During the year, the Corporation has made a provision of ? 3,252,240 thousands (Previous year made provision of ? 3,678,726 thousands) towards gross unexpired premium reserve for life business as determined by Life Appointed Actuary, as per IRDAI guidelines.

30. The estimate of claims Incurred but Not Reported [IBNR] claims have been certified by the Company''s Appointed Actuary. The Appointed Actuary has certified to the Company that the assumptions used for such are appropriate and are in accordance with the requirements of the Insurance Regulatory and Development Authority of India [IRDAI] and Institute of Actuaries of India in concurrence with IRDAI.

For all other overseas business (proportional and non-proportional) and domestic non-proportional business, delay days method has been used.

> Secretarial

35. During the financial year 2018-19, the Corporation issued bonus equity shares in the ratio of 1:1 i.e.1 (one) equity share of ? 5/-each (fully paid up) for every 1 (one) existing equity share of ? 5/- each (fully paid up) to the Shareholders of the Corporation, in the month of July 2018.

During the financial year 2022-23, the Corporation has not issued any such bonus shares. As on 31^st March 2023 and 31^st March 2022, the Issued, Subscribed, Called-up and Paid-up Capital of the Corporation is ? 8,772,000 thousands comprising of 1,754,400 thousands Equity shares of ? 5/- each.

Accordingly Earning Per Share, Book Value per share and Dividend per share is worked out for the previous years based on the increased number of shares.

39. In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

40. Proposed Dividend for the year 2022-23

The Board of Directors of the Corporation have recommended final dividend at the rate of ? 7.20 per equity share (on face value of ? 5/- each) for the Financial Year 2022-23. Earlier during the current financial year, the Corporation had paid interim dividend of ? 2.25 per equity share (on face value of ? 5/- each) for the Financial Year 2021-22.

Basic earnings per share are calculated by dividing the profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the profit or loss after tax for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares which could have been issued on the conversion of all dilutive potential equity shares.

The face value of equity share is consolidated from ? 1 to ? 5 per share. Accordingly, the Earning Per Share, Book Value per share and Dividend per share are based on the face value of ? 5 per share. During the Year ended 31.03.2019, the Corporation has issued bonus shares in the ratio of 1:1. Accordingly the Earning Per Share, Book Value per share and Dividend per share is based on the increased number of shares.

43. The Corporation''s office premises are obtained on operating lease and are renewable/cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing agreements are in respect of operating lease for premises. Aggregate lease rentals amounting to ? 25,748.63 thousands (Previous year ? 23,919 thousands) are expected to be paid under operating lease in less 12 months from 31^st March 2023.

As per AS-19 related to Lease, GIC Re is not required to make any disclosure under AS-19.

During the year the Corporation has recognised Deferred Tax asset of ? 4,598,741 thousands against Provision for doubtful investments of ? 18,272,176 thousands where the Corporation expects certainty of loss realisation and tax benefits to flow. Further, Deferred Tax asset of ? 1,289,984 thousands is also accounted against CAT Reserve of ? 5,125,494 thousands.

(b) The Taxation Laws (Amendment) Act, 2019 provides domestic companies with an option of lower tax rate, provided they do not claim certain deductions and not compute tax as per Minimum Alternate Tax (MAT). Accordingly, the Corporation has considered the reduced rate for the purpose of computing provision for tax and deferred tax in these standalone financial results for the quarter and twelve months ended 31^st March 2023.

45. During the year, the Corporation has reviewed its fixed assets for impairment. In the opinion of the management of the respective companies no provision for impairment loss is considered necessary.

46. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 8.

47. Contingent Liabilities:

(a) Partly Paid-up investments ? NIL (Previous year NIL)

(b) Underwriting commitments outstanding ? NIL (Previous year NIL)

(c) Claims, other than those under policies not acknowledged as debts ? 6,186 thousands (Previous year ? 6,186 thousands)

(d) Guarantees/LC given by or on behalf of the Corporation ? 93,800,807 thousands (Previous year ? 75,960,027 thousands).

(e) Statutory demand/liabilities in dispute - Income-tax demands disputed, not provided for ? 86,918,929 thousands (Previous year ? 108,136,264 thousands).

During the current year, the Corporation has not considered following as Contingent liabilities (Previous year amounts are prior to giving effect of following items):

(i) Show cause notices where order is not received.

(ii) Demands where Corporation has received favourable orders in appellate tribunal and department has challenged in High Court.

(f) The Corporation has received various show cause notices issued by GST/Service tax department during the current year amounting to ? 22,904,814 thousands (Previous year ? 51,284,270 thousands) and the Corporation is contesting the same with the authority.

During the current year, the Corporation has not considered following as Contingent liabilities (Previous year amounts are prior to giving effect of following items):

(i) Interest accruals on the statutory demands from the date of demand to current date.

(ii) Show cause notices where order is not received.

(iii) Demands where Corporation has received favourable orders in appellate tribunal and department has challenged in High Court.

(g) Reinsurance obligations to the extent not provided for in the accounts NIL (Previous year NIL) in view of Significant Accounting Policy No. 2.2.

(h) GIC has 172 legal matters pending before various courts and tribunals other than above matters among which GIC is having contingent liability in 6 legal matters and the contingent liability amount is estimated up to ? 1,871,829 thousands (Previous year ? 8,725,234 thousands) and rest of the matters are of negligible financial impact.

> GENERAL

49. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation has identified Micro, Small and Medium Enterprises as defined in above referred act. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

50. Corporate Social Responsibility (CSR):

As per Section 135 of the Companies Act, 2013, General Insurance Corporation of India was required to spend an amount of ? 83,200(in thousands) for the financial year 2022-23 towards Corporate Social Responsibility. During the financial year 2022-23, an amount of ? 21,146 (in thousands) has been spent. The projects are in different stages of implementation. The total unspent amount as on 31.03.2023 is ? 62,053 (in thousands) pertaining to on-going projects. This unspent amount has been transferred to a separate bank account to be utilized in the next three financial years.

51. Regarding the collection of shortfall premium, the recovery from the concerned broker stands at USD 391,131 (? 32,104 thousands at current rate of exchange). Outstanding premium recovery as on 31.03.2023 is USD 121,835.15 (? 1,00,00 thousands at current rate of exchange).

(ROE 1 USD = 82.08 INR)

52. There are no Material Changes and Commitments Affecting the Financial Position Of The Company occurring after the Balance sheet date (Previous year Nil).

53. During the previous year ended 31^st March 2022, GIC Re decided to place its Dubai branch into run off because of non-renewal of license by Dubai authority, non-compliance in solvency requirement etc. Decision to place the Dubai Branch into run off, was informed to IRDAI vide letter dated 6^th July 2021. Board of GIC Re also accorded its approval and to carry out suitable statutory requirements if any on 7^th July 2021 by circular resolution. GIC Re India will continue the activity/operations relating to Dubai branch from GIFT City, India. Accordingly, a Portfolio Transfer Agreement has also been entered on 14^th September 2022 between GIC Gift City Branch and Dubai Branch.

54. During the financial year 2020-21, M/s "AM Best" has downgraded the Financial Strength Rating (FSR) of A- (Excellent) to B (Good) and the Long-Term Issuer Credit Rating (ICR) of "a-" to "bbb ". During the current financial year 2022-23, the outlook of the Long-Term ICR was revised to ''Stable'' from ''Negative'' whilst the FSR outlook is Stable. The previous year downgrade did not materially impact the financial position of the Corporation, due to special position of the Corporation in the Indian market and various steps taken by management.

55. The Corporation has prepared Cash flow statement adopting the indirect method.

56. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

57. During the current year, prior period profit commission of NIL (Previous year ? 729,910 (in thousands)) is accounted in respect of Structured Solutions Reinsurance Contract. (As stated in Note no 19).

Other than this Prior period items have not been separately disclosed, as the amount is not material.

58. Premium in respect of Reinsurance Contracts is accounted as per Statement of Accounts (SOAs) received from the cedants & intermediaries and accrued Premium where SOAs are due but not received for the reporting period. Accrued premium is worked out proportionately on the basis of our share in Estimated Premium Income (EPI) for the full contract period as per contract terms. The proportionate working of such EPI also considers past trend of premiums ceded in quarterly SOAs. The Corporation has Board Approved Methodology to work out Premiums on Accrual Basis for various types of Contracts over the contract period. Such working of accrued premium is accounted as provision for Premium Income at each reporting period consistently.

59. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

60. The Accounting Ratios of the Corporation are stated in Annexure II.

61. Figures relating to the previous year have been regrouped/rearranged, wherever necessary.

Mar 31, 2022

. Ageing of claims - distinguishing between claims outstanding for different periods:

25. The Corporation being a reinsurance company does not settle claims directly with the insured. The companies after settling the claims with their insured would recover the claims from the Corporation as per the reinsurance obligations. Such recoveries are settled with the companies through periodical account statements. Claims settled and remaining unpaid for a period of more than six months as on 31.03.2022 '' NIL (Previous Year NIL).

26. (a) Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with persons/

bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of '' 3,397,006 thousand (Previous year '' 5,484,962 thousand) for doubtful receivables.

(b) The balances of amount due to/from and the deposits kept with other persons/bodies carrying on insurance business are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on receipt /confirmation/reconciliation of the same after due examination. During the previous year, some of the due to and due from including deposits which are unconfirmed and/or unreconciled as on March, 31, 2018, from inception have been written off/written back. Accordingly, a sum of '' Nil (Previous Year '' 5,909,700 thousand has been written off and '' 7,259,198 thousand) has been written back.

(c) The Corporation has also provided a provision on doubtful debts on sundry debtors outstanding for more than 1 year as on 31.03.2022 amounting to '' 6,740 thousand (Previous year '' 4,054 thousand.).

27. The Corporation has not provided for catastrophic reserves as IRDAI has not issued any guidelines in this respect.

29. Life Reinsurance Business:

During the year, the Corporation has made a provision of '' 3,678,726 thousand (Previous Year made provision of '' 2,648,948 thousand) towards unexpired premium reserve for life business as determined by Life Appointed Actuary, as per IRDAI guidelines. (Including Re-takaful business).

For all other overseas business (proportional and non-proportional) and domestic non-proportional business, delay days method has been used.

> Secretarial

35. During the financial year 2018-19, the Corporation issued bonus equity shares in the ratio of 1:1 i.e.1 (one) equity share of '' 5/-each (fully paid up) for every 1 (one) existing equity share of '' 5/- each (fully paid up) to the Shareholders of the Corporation, in the month of July, 2018.

During the current financial year 2021-22, the Corporation has not issued any such bonus shares. As on 31^st March, 2022 and 31^st March, 2021, the Issued, Subscribed, Called-up and Paid-up Capital of the Corporation is '' 877,20,00,000/- comprising of 175,44,00,000 Equity shares of '' 5/- each.

Accordingly Earning Per Share, Book Value per share and Dividend per share is worked out for the previous years based on the increased number of shares.

40. Proposed Dividend for the year 2021-22

The Board of Directors of the Company have declared interim dividend at the rate of '' 2.25 per equity share (on face value of '' 5/- each) and 8^th June 2022 has been fixed as record date for payment of interim dividend.

43. The Holding Company''s office premises are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing agreements are in respect of operating lease for premises. Aggregate lease rentals amounting to '' 23,919 thousand (Previous year '' 23,919 thousand) in respect of obligation under operating lease are charged to revenue account.

As per AS-19 related to Lease, GIC Re is not required make any disclosure under AS-19.

44. Taxation

Disclosures as per Accounting Standard - 22 "Accounting for Taxes on Income":

(a) Deferred Tax assets are recognized if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. Deferred Tax asset on Business loss had been recognized and carried over by the company of amounting to '' 1,63,936.45 thousand on year ended 31.03.2020 owing to virtual certainty of availability of future taxable income to realize such asset.

(b) With insertion of new section 115BAA in the Income-tax Act 1961, an option is provided to domestic companies to avail the benefit of reduced corporate tax rate of 22%. Companies availing such benefit will not be required to compute book profit u/s. 115JB of the Act (MAT) and consequently shall not be eligible for claiming unutilized MAT credit. As GIC Re had total unutilized MAT credit of '' 78,01,482 thousand as on 31.03.2021 which was eligible for set off for subsequent assessment years. The full balance has been utilised during the current year. Hence the Corporation can opt for concessional tax rate under section 115BAA in subsequent year.

45. During the year, the Group has reviewed its fixed assets for impairment. In the opinion of the management of the respective companies no provision for impairment loss is considered necessary.

46. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 8.

47. Contingent Liabilities:

(a) Partly Paid-up investments ?NIL (Previous year NIL)

(b) Underwriting commitments outstanding ?NIL (Previous year NIL)

(c) Claims, other than partly under policies not acknowledged as debts '' 6,186 thousand (Previous year '' 6,186 thousand)

(d) Guarantees / LC given by or on behalf of the Corporation '' 75,960,027 thousand (Previous year '' 51,823,530 thousand)

(e) Statutory demand / liabilities in dispute - Income-tax demands disputed, not provided for '' 108,136,263.44 thousand (Previous year '' 71,154,032 thousand).

(g) Reinsurance obligations to the extent not provided for in the accounts NIL (Previous year NIL) in view of Significant Accounting Policy No. 2.2.

(h) GIC has 202 legal matters pending before various courts and tribunals among which GIC is having contingent liability in 3 legal matters and the contingent liability amount is estimated up to '' 8,725,234 thousand (previous year '' 403, 238 thousand) and rest of the matters are of negligible financial impact.

> GENERAL

50. Corporate Social Responsibility (CSR):

Corporate Social Responsibility (CSR): As per Section 135 of the Companies Act, 2013, General Insurance Corporation of India was required to spend an amount of '' 291,279.44 thousand for the financial year 2021-22 towards Corporate Social Responsibility. During the financial year 2021-22, an amount of '' 97,501.55 thousand has been spent. The balance could not be spent as various projects are in different implementation stages. The total unspent amount as on 31.03.2022 is '' 192,475.73 thousand pertaining to on-going projects. This unspent amount has been transferred to a separate bank account to be utilized in the next three financial years.

Below are details of CSR projects taken up in FY 21-22:

(a) Gross amount required to be spent by the company in FY 2021-22 - '' 291,279.44 thousand

(b) Amount approved by the Board to be spent in FY 2021-22 - '' 291,279.44 thousand

(d) Details of related party transactions, e.g., contribution to a trust/ society / section 8 company controlled by the company in relation to CSR expenditure as per Accounting Standard (AS) 18, Related Party Disclosures.

Same as c (ii) above

51. During the year 2017/18, irregularities in acceptance of reinsurance contracts and short collection of premiums by an employee of the Corporation had been detected and was reported in the Notes forming part of the accounts.

With regard to the collection of shortfall premiums the recovery from the concerned broker stands at USD 391,131 ('' 29,808 thousand at current rate of exchange). Recovery to be made for the balance amount of USD 121,835.15 ('' 9,285 thousand at current rate of exchange). The same is outstanding as on 31.03.2022. (ROE 1 USD = 76.21 INR)

53. The Outbreak of COVID-19, declared as a global pandemic by the World Health Organisation (WHO) in March 2020, continues to spread across the world apart from relapse of infections reported. The pandemic had significant impact on the Indian and world economies.

The COVID-19 pandemic is a concern for reinsurers as well since market will be exposed across all spectrum''s businesses. In view of the robust risk-adjusted capitalization policy of the corporation, the management is in a good position to absorb any potential COVID-19 losses on both the underwriting and investment side of the financials.

The Corporation prudently and with a conservative approach, reviewed potential impact of Covid-19 on its operations accordingly, the management is confident that most of the business areas are not expected to have any major financial impact from Covid-19 related stresses. As such, the Corporation has made an additional provision of '' 4,596,607 thousand (Previous year '' 4,645,662 thousand) in its actuarial valuation (IBNR) in FY 2021-22.

54. During the year ended 31^st March, 2022, GIC Re decided to place its Dubai branch into run off because of non-renewal of license by Dubai authority, non-compliance in solvency requirement etc. Decision to place the Dubai Branch into run off, has been informed to IRDAI vide letter dated 6^th July, 2021. Board of GIC Re also accorded its approval and to carry out suitable statutory requirements if any on 7^th July, 2021 by circular resolution. GIC Re India will continue the activity / operations relating to Dubai branch from GIFT City, India.

55. During the previous financial year 2020-21, M/s "AM Best" has downgraded the Financial Strength Rating (FSR) of A- (Excellent) to B (Good) and the Long-Term Issuer Credit Rating (ICR) of "a-" to "bbb ". During the current financial year 2021-22, the outlook of the Long-Term ICR was revised to ''Stable'' from ''Negative'' whilst the FSR outlook is Stable. The previous year downgrade did not materially impact the financial position of the corporation, due to special position of the corporation in the Indian market and various steps taken by management.

56. The Corporation has prepared Cash flow statement adopting the indirect method.

57. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

58. During the current year, prior period profit commission of '' 729,910 thousand (previous year NIL) is accounted in respect of Structured Solutions Reinsurance Contract .(As stated in Note no 18).

Other than this Prior period items have not been separately disclosed, as the amount is not material

59. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

60. The Accounting Ratios of the Corporation are stated in Annexure II.

61. Figures relating to the previous year have been regrouped / rearranged, wherever necessary.

Mar 31, 2021

24. Claims settled and remaining unpaid for a period of more than six months as on 31.03.2021.

'' NIL (Previous Year NIL).

25. (a) Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with

persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of '' 5,484,962 thousand (PY.? 7,799,829 thousand) for doubtful receivables.

(b) The balances of amount due to/from and the deposits kept with other persons/bodies carrying on insurance business are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on receipt /confirmation/reconciliation of the same after due examination. During the year however, some of the due to and due from including deposits which are unconfirmed and/or unreconciled as on March 31, 2018, from inception have been written off/written back. Accordingly, a sum of 5,909,700 thousand has been written off and '' 7,259,198 thousand has been written back and therefore the net income of '' 1,349,497 thousand arising out of excess write back is included in provision/(written back) for doubtful debts which is part of profit and loss account.

(c) The Corporation has also provided a provision on doubtful debts on sundry debtors outstanding for more than 1 year as on 31.03.2021 amounting to '' 4,054 thousand (Previous year '' 22,958 thousand.).

26. The Corporation has not provided for catastrophic reserves as IRDAI has not issued any guidelines in this respect.

28. Life Reinsurance Business:

During the year, the Corporation has made a provision of '' 2,648,948 thousand (Previous Year made provision of '' 2,197,136 thousand) towards unexpired risk reserve for life business as determined by Life Appointed Actuary, as per IRDAI guidelines. (Excluding Re-takaful business).

29. The estimate of claims Incurred but Not Reported [IBNR] claims have been certified by the Companyâs Appointed Actuary. The Appointed Actuary has certified to the Company that the assumptions used for such are appropriate and are in accordance with

the requirements of the Insurance Regulatory and Development Authority of India [IRDAI] and Institute of Actuaries of India in concurrence with IRDAI.

The IBNR provision for Life Re business is certified by the Appointed Actuary - Life Re. The IBNR has been calculated using triangulation method for domestic business except for non-proportional business and for Overseas Group Credit Business.

For all other overseas business (proportional and non-proportional) and domestic non-proportional business, delay days method has been used.

> Human Resources

32. Provision for Productivity Linked Lump-sum Incentive to the employees for the year ended 31^st March 2021 is '' 19,204 thousand (Previous Year NIL ).

> Secretarial

34. During the previous Financial year 2018-19, the Corporation issued bonus equity shares in the ratio of 1:1 i.e.1 (one) equity share

of '' 5/- each (fully paid up) for every 1 (one) existing equity share of '' 5/- each (fully paid up) to the Shareholders of the Corporation, in the month of July, 2018.

During the current financial year 2019-20, the Corporation has not issued any such bonus shares. As on 31st March 2020 and 31march 2019, the Issued, Subscribed, Called-up and Paid-up Capital of the Corporation is '' 877,20,00,000/-comprising of 175,44,00,000 Equity shares of '' 5/- each.

Accordingly Earning Per Share, Book Value per share and Dividend per share is worked out for the previous years based on the increased number of shares.

36. (i) Related party Disclosures as per Accounting Standard - 18 âRelated Party Transactionâ issued by ICAI:

a) Subsidiary Company:

â¢ GIC Re South Africa Ltd., Johannesburg, S.A.

â¢ GIC Re India Corporate Member Limited, London, U.K.

â¢ GIC Perestrakhovanieâ LLC.

The Board of GIC Re in its meeting dated 6th June 2016 authorized GIC Re to upgrade Moscow Representative Office into a business underwriting office by establishing a wholly owned subsidiary in Russia and approved the requisite capital. During the current financial year GIC Re Moscow Representative Office has been converted to our subsidiary after obtaining necessary approvals on 30^th January 2020.

b) Associate Company:

â¢ India International Insurance Pte. Limited, Singapore

â¢ Agriculture Insurance Company of India Limited, New Delhi, India

â¢ GIC Bhutan Re Ltd, Bhutan

Nature and volume of transactions: With (a&b) above (ii) Statement showing Related party disclosures as per AS-18 of ICAI

38. In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

39. Proposed Dividend for the year 2020-21

In view of the need for conserving capital for improving solvency margin of the Corporation and continued uncertainty with regard to the persistence of Covid-19 circumstances, the Board of Directors at their meeting held on 29th June 2021, have not recommended payment of dividend for the financial year 2020-21.

The Corporation did not propose any dividend on equity shares for the year 2019-20 upon taking cognizance of IRDAI Circular no. IRDA/F&A/CIR/MISC/099/04/2020 dated 24th April 2020, which urged the insurers to take a conscious call to refrain from dividend pay-outs from profits pertaining to the financial year ending 31st March 2020. Subsequently IRDAI vide circular ref. no. IRDA/F&A/CIR/MISC/032/02/2021 dated 25th February 2021 withdrew the applicability of the circular dated 24th April 2020 and requested Insurers to take a conscious call in declaring dividends for FY 2020-21 considering their capital, solvency and liquidity positions.

Securities and Exchange Board of India (SEBI) had conducted an investigation for trading in shares of the promoted company (Axis Bank) for trades between 01.10.2017 to 30.09.2018 where it was observed that, General Insurance Corporation of India (GIC Re) had delayed in making disclosures in terms of Regulation 7(2)(a) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, in respect of change in its shareholding in the Company (Axis Bank).

After various interactions, explanations and submission of information to SEBI, SEBI issued Notice of Summary Settlement on 16.10.2019 asking GIC Re to pay '' 12,336 thousand for the settlement of the matter, which was paid on 20.11.2019 by GIC Re without admitting or denying the findings of fact and conclusion of law.

SEBI issued a final summary settlement order on 12.12.2019 mentioning therein the delay in making disclosures without putting any charge of Insider trading.

Further the GIC Board has since passed Resolution for re-classification of GIC of India as Public Shareholder of Axis Bank in place of Promoter Shareholder. GIC of India has also communicated to Axis Bank for necessary action to effect this re-classification.

The face value of equity share is consolidated from ''1 to ''5 per share. Accordingly, the Earning Per Share, Book Value per share and Dividend per share is based on the face value of ''5 per share. During the Year ended 31.03.2019, the Corporation has issued bonus shares in the ratio of 1:1. Accordingly the Earning Per Share, Book Value per share and Dividend per share is based on the increased number of shares.

The Holding Companyâs office premises are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing agreements

are in respect of operating lease for premises. Aggregate lease rentals amounting to '' 23, 919 thousand (Previous year '' 32,543

thousand) in respect of obligation under operating lease are charged to revenue account.

As per AS-19 related to Lease, GIC Re is not required make any discloser under AS-19.

TaxationDisclosures as per Accounting Standard - 22 âAccounting for Taxes on Incomeâ:

(b) With insertion of new section 115BAA in the Income-tax Act 1961, an option is provided to domestic companies to avail the benefit of reduced corporate tax rate of 22%. Companies availing such benefit will not be required to compute book profit u/s. 115JB of the Act (MAT) and consequently shall not be eligible for claiming unutilized MAT credit. As GIC Re has total unutilized MAT credit of ''. 78,01,482 thousand as on 31.03.2021 which is eligible for set off for subsequent assessment years. Hence the Corporation has not opted for concessional tax rate under section 115BAA, for the Year 31.03.2021.

During the year, the Group has reviewed its fixed assets for impairment. In the opinion of the management of the respective

companies no provision for impairment loss is considered necessary.

The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting

Policy No. 8.

Contingent Liabilities:

(a) Partly Paid up investments '' NIL (Previous year NIL)

(b) Underwriting commitments outstanding '' NIL (Previous year NIL)

(c) Claims, other than Partly under policies not acknowledged as debts '' 6,186 thousand (Previous year '' 6,186 thousand)

(d) Guarantees / LC given by or on behalf of the Corporation '' 51,823,530 thousand (Previous year '' 33,439,903 thousand)

(e) Statutory demand / liabilities in dispute - Income-tax demands disputed, not provided for '' 71,154,032 thousand (Previous year '' 70,932,495 thousand).

(g) Reinsurance obligations to the extent not provided for in the accounts NIL (Previous year NIL) in view of Significant Accounting Policy No. 2.2.

(h) âGIC has 193 legal matters pending before various courts and tribunals among which GIC is having contingent liability only in 3 matters and the contingent liability amount is estimated up to '' 403,238 thousand, (previous year '' 390,634 thousand) the rest of the matters are of negligible financial impact or nil impact.

GENERAL

The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation is in the process of identifying Micro, Small and Medium Enterprises as defined in above referred act. Hence relevant disclosures are not made. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

Corporate Social Responsibility (CSR):

As per Section 135 of the Companies Act, 2013, General Insurance Corporation of India was required to spend an amount of '' 544,000 thousand for the financial year 2020-21 towards Corporate Social Responsibility. During the financial year 2020-21, an amount of '' 408,110 thousand has been spent. The balance could not be spent as various projects are in different implementation stages. The total unspent amount as on 31.03.2021 is '' 135,890 thousand pertaining to on-going projects. This unspent amount has been transferred to a separate bank account to be utilized in the next three financial years.

Below are details of CSR projects taken up in FY 20-21:

(a) Gross amount required to be spent by the company in FY 2020-21 - '' 544,000 thousand

(b) Amount approved by the Board to be spent in FY 2020-21 - '' 544,000 thousand

During the year 2017/18, irregularities in acceptance of reinsurance contracts and short collection of premiums by an employee of the Corporation had been detected and was reported in the Notes forming part of the accounts.

With regard to the collection of shortfall premiums the recovery from the concerned broker stands at USD 391,131 ('' 28,572 thousand at current rate of exchange). Recovery to be made for the balance amount of USD 121,835.15 ('' 8,899 thousand at current rate of exchange). The same is outstanding as on 31.03.2021.

The Outbreak of COVID-19, declared as a global pandemic by the World Health Organisation (WHO) in March 2020, continues to spread across the world apart from relapse of infections reported. The pandemic had significant impact on the Indian and world economies and the same is expected to continue in the near future.

The ongoing COVID-19 pandemic is a concern for reinsurers as well since market will be exposed across all spectrumâs businesses. In view of the robust risk-adjusted capitalization policy of the corporation, the management is in a good position to absorb any potential COVID-19 losses on both the underwriting and investment side of the financials.

The Corporation prudently and with a conservative approach, reviewed potential impact of Covid-19 on its operations accordingly, the management is confident that most of the business areas are not expected to have any major financial impact from Covid-19 related stresses. As such, the Corporation has made an additional provision of '' 4,645,662 thousand (Previous year NIL) in its actuarial valuation (IBNR) and for Venture Capital Portfolio NIL (Previous Year '' 670,00 thousand) in FY 2020-21.

The Corporation has prepared Cash flow statement adopting the indirect method.

Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

Prior period items have not been separately disclosed, as the amount is not material.

The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

The Accounting Ratios of the Corporation are stated in Annexure II.

Figures relating to the previous year have been regrouped / rearranged, wherever necessary.

The face value of equity share is consolidated from '' 1 to '' 5 per share .Accordingly the Earning Per Share,Book Value per share and Dividend per share is based on the face value of '' 5 per share. During the Year ended 31.03.2019, the Corporation has issued bonus shares in the ratio of 1:1. Accordingly, the Earning Per Share,Book Value per share and Dividend per share is based

Mar 31, 2019

Notes Forming Part of the Accounts

33. Investment in Subsidiary & Associate Companies (As on 31st March 2019)

(Rs. in thousand)

Sr. No.	Name of the company	Currency	No. of Shares	Face value	% Holding	Acquisition Cost
	Subsidiary Company
1.	GIC Re South Africa Ltd.	Zar	571,030,862	2 Zar	100%	6,042,192
2.	GIC Re India Corporate Member Ltd.	GBP	1	1 GBP	100%	2
	Total Subsidiary Investment					6,042,194
	Associate Company
1.	Agriculture Ins. Co. of India Ltd	INR	70,000,000	10INR	35%	700,000
2.	GIC Bhutan Re Ltd	Nu	13,000,000	10 Nu	26%	130,000
3.	India International Ins. Pte Ltd.	SGD	10,000,000	1 SGD	20%	29,479
	Total Associate Investments					859,479

Investment in Subsidiary & Associate Companies (As on 31st March,2018)

(Rs in thousand)

Sr. No.	Name of the company	Currency	No. of Shares	Face value	% Holding	Acquisition Cost
	Subsidiary Company
1.	GIC Re South Africa Ltd.	Zar	421,856,675	2 Zar	100%	45,20,723
2.	GIC Re India Corporate Member Ltd.	GBP	1	1 GBP	100%	2
	Total Subsidiary Investments					45,20,725
	Associate Company
1.	Agriculture Ins. Co. of India Ltd	INR	70,000,000	10 INR	35%	7,00,000
2.	GIC Bhutan Re Ltd	Nu	13,000,000	10 Nu	26%	1,30,000
3.	India International Ins. Pte Ltd.	SGD	10,000,000	1 SGD	20%	29,479
	Total Associate Investments					8,59,479

34. (i) Related party Disclosures as per Accounting Standard - 18 "Related Party Transaction" issued by ICAI:

a) Subsidiary Company:

GIC Re South Africa Ltd., Johannesburg, S.A.

GIC Re India Corporate Member Limited, London, U.K.

GIC Perestrakhovanie" LLC.

The Board of GIC Re in its meeting dated 6th June 2016 authorized GIC Re to upgrade Moscow Representative Office into a business underwriting office by establishing

a wholly owned subsidiary in Russia and approved the requisite capital. In April 2016, a communication from Central Bank of Russia-The insurance regulator in Russia - consenting "in principle" no objection to GIC Re''s proposal to incorporate a subsidiary in Moscow was received. The necessary approvals from IRDAI and Ministry of Finance were obtained in June 2017. Accordingly, the company has been registered in November 2018 in the name of "GIC Perestrakhovanie" LLC. However, no investments have been made by the corporation in the subsidiary till 31.03.2019.

b) Associate Company:

India International Insurance Pte. Limited, Singapore

Agriculture Insurance Company of India Limited, New Delhi, India

GIC Bhutan Re Ltd, Bhutan

Nature and volume of transactions: With (a & b) above

(ii) Statement showing Related party disclosures as per AS-18 of ICAI

a. Subsidiaries

Period	GIC Re South Africa Ltd., Johannesburg, S.A.		GIC Re, India, Corporate Member Ltd., London, U.K
	2018-19 2017-18		2018-19 2017-18
Premium Accepted	1,243,185	3,448,447	3,977,906	3,143,576
Premium Ceded	-	-	-	-
Net Premium	1,243,185	3,448,447	3,977,906	3,143,576
Commission Paid	395,782	1,058,990	1,712,426	1,235,857
Commission Recovered	-	-	-	-
Net Commission	395,782	1,058,990	1,712,426	1,235,857
Claims Paid	2,264,604	1,782,190	3,900,756	2,822,221
Claims Recovered	-	-	-	-
Net Claims	2,264,604	1,782,190	3,900,756	2,822,221
Balance as on 31st March (-) indicates amount payable by GIC	-	-	-	-

b. Associates

(Rs. in thousand)

Period	Agriculture Ins. Co. Ltd		India International Ptd. Ltd		GIC Bhutan RE
	2018-19	2017-18	2018-19	2017-18	2018-19	2017-18
Premium Accepted	38,487,907	32,662,335	70,352	8,316	12,626	44,008
Premium Ceded	(7,173)	121,671	2,538	-	-	-
Net Premium	38,495,080	32,540,664	67,813	8,316	12,626	44,008
Commission Paid	1,988,526	3,524,997	14,790	931	-	-
Commission Recovered	1,736	27,200	-	-	-	-
Net Commission	1,986,790	3,497,798	14,790	931	-	-
Claims Paid	45,413,335	23,322,642	23,360	1,07,465	-	-
Claims Recovered	46,170	54,845	-	-	-	-
Net Claims	45,367,165	23,267,797	23,360	1,07,465	-	-
Balance as on 31st March (-) indicates amount payable by GIC					-	-

35. i) Key Management Personnel:

Sr. No.	Designation	Name
1	Chief Executive Officer	Smt. Alice G. Vaidyan
2	General Manager & Chief Finance Officer Director, General Manger & Chief Finance Officer	Shri V.C. Jain (upto 31.07.2018) Smt. Sashikala Muralidharan (w.e.f. 01.08.2018)
3	Director, General Manger & Chief Underwriting Officer	Smt. Usha Ramaswamy (w.e.f. 01.08.2018)
4	General Manager & Chief Marketing Officer	Shri Pauly Sukumar N. (upto 30.06.2018) Shri Deepak Godbole (W.e.f. 01.08.2018)
5	Appointed Actuary (General Insurance)	Smt. Priscilla Sinha (upto 31.12.2018)
6	Deputy General Manager & Chief Investment Officer General Manager & Chief Investment Officer	Shri Uttam Kumar Sharma (from 22.01.2017 to 31.07.2018) Shri S.N. More (w.e.f. 01.08.2018)
7	General Manager, Chief of Internal Audit & Financial Advisor	Shri D.R. Waghela (up to 31.05.2018)
		Shri Devesh Srivastava (from 01.08.2018 up to 10.10.2018)
		Smt. Reena Bhatnagar (w.e.f. 11.10.2018)
8	General Manager & Chief Risk Officer	Smt. Madhulika Bhaskar
9	General Manager & Chief Compliance Officer	Smt. Suchita Gupta
10	General Manager	Shri Deepak Prasad (w.e.f 01.04.2018)
11	General Manager	Shri Sushil Kumar (up to 31.12.2018)
12	Appointed Actuary (Life Insurance)	Shri Ajai Kumar Tripathi(w.e.f 20.11.2018)

ii. Details of Key Managerial Personnel Remuneration for the year ended 31.03.2019 is as follows:

								(Rs. in thousand)
Sr. No	Designation	Name	Gross Salary	Corp.''s P.F..	House Perquisite	Loan Perquisite	Vehicle Perquisite	LTS Perquisite	Other Perquisite
1	Chief Executive Officer	Smt. Alice G. Vaidyan	3,086.84	265.32	402.73	0.00	32.40	0.00	3.56
2	General Manager & Chief Finance Officer	Shri V.C. Jain (upto 31.07.2018)	703.83	46.72	71.20	0.00	10.80	0.00	40.02
	Director, General Manger & Chief Finance Officer	Smt. Sashikala Muralidharan (w.e.f. 01.08.2018)	1,553.13	98.67	142.30	0.58	14.40	0.00	67.74
3	Director, General Manger & Chief Underwriting Officer	Smt. Usha Ramaswamy (w.e.f. 01.08.2018)	1,526.13	92.46	136.12	63.12	14.40	0.00	41.67
4	General Manager & Chief Marketing Officer	Shri Pauly Sukumar N. (up to 30.06.2018)	518.48	34.06	52.43	0.00	8.10	0.00	324.13
	General Manager & Chief Marketing Officer	Shri Deepak Godbole (W.e.f. 01.08.2018)	1,502.60	90.94	131.87	0.00	14.40	0.00	42.45
5	Appointed Actuary (General Insurance) *	Smt. Priscilla Sinha (up to 31.12.2018)	5,940.90	0.00	0.00	0.00	0.00	0.00	0.00
6	Deputy General Manager & Chief Investment Officer	Shri Uttam Kumar Sharma (from 22.01.2017 to 31.07.2018)	611.63	41.71	61.68	0.00	7.20	0.00	35.36
	General Manager & Chief Investment Officer	Shri S.N. More (w.e.f. 01.08.2018)	1,575.35	93.00	143.69	0.00	0.00	0.00	217.26
7	General Manager, Chief of Internal Audit & Financial Advisor	Shri D.R. Waghela (upto 31.05.2018)	350.26	23.90	34.75	0.00	5.40	0.00	24.07
	General Manager, Chief of Internal Audit & Financial Advisor	Shri Devesh Srivastava (from 01.08.2018 up to 10.10.2018)	593.07	66.25	64.10	19.09	9.37	0.00	156.39
	General Manager,	Smt. Reena
	Chief of Internal Audit & Financial Advisor	Bhatnagar (w.e.f. 11.10.2018)	1,010.99	61.67	89.57	2.15	9.00	0.00	24.20
8	General Manager & Chief Risk Officer	Smt. Madhulika Bhaskar	2,203.68	134.10	0.00	0.00	21.60	0.00	84.47
9	General Manager & Chief Compliance Officer	Smt. Suchita Gupta	2,169.40	136.86	201.94	0.00	21.60	0.00	77.42
10	General Manager	Shri Deepak Prasad (w.e.f 01.04.2018)	2,254.25	141.12	0.00	30.70	0.00	0.00	64.18
11	General Manager	Shri Sushil Kumar (up to 31.12.2018)	1,754.39	105.77	171.31	53.25	24.30	0.00	334.44
12	Appointed Actuary (Life Insurance) *	Shri Ajai Kumar Tripathi (w.e.f 20.11.2018)	1,753.33

* Professional fees

Details of Key Managerial Personnel Remuneration for the year ended 31.03.2018 is as follows:

								(Rs. in thousand)
Sr. No	Designation	Name	Gross Salary	Corp.''s P.F.	House Perquisite	Loan Perquisite	Vehicle Perquisite	LTS perquisite	Other Perquisite
1	Chief Executive Officer	Smt. Alice Vaidyan	3,407	256	377	0	32	0	0
2	Chief Marketing Officer	Shri Pauly Sukumar N.	2,087	135	209	0	32	0	48
3	Chief Investment Officer	Shri Satyajit Tripathy (upto 22.01.2018) 285 days	1,465	98	143	34	17	0	38
4	Chief Investment Officer	Shri Uttam Kumar Sharma (wef 22.01.2018) 69 days	352	24	35	0	4	0	0
5	Financial Advisor & Chief of Internal Audit (upto 24.05.2017) 54 days	Shri G.C. Gaylong	306	22	30	0	3	0	200
6	Financial Advisor & Chief of Internal Audit (wef 24.05.2017) 232 days	Shri D.R. Waghela	1,399	90	140	0	21	0	30
7	Chief Financial Officer	Shri V.C.Jain	2,127	138	214	0	32	0	48
8	Chief Risk Officer	Smt. Madhulika Bhaskar	2,065	128	0	0	22	0	50
9	Chief Compliance Officer	Smt. Suchita Gupta	2,022	130	203	0	22	0	49
10	Appointed Actuary (General Insurance) *	Smt. Priscilla Sinha	7,595	0	0	0	11	0	0
11	Appointed Actuary (Life Insurance) upto 30.06.2017*	Smt. Padmaja R.	911	0	0	0	0	0	0

* Professional fees

36. In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state- controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

37. Proposed Dividend for the year 2018-19

In view of the amendment to AS 4 as per the Companies (Accounting Standards) Amendment Rules, 2016, the Corporation has not made any provision for Dividend in

the Annual Accounts for the year 2018-19.The proposed dividend for the year 2018-19 is Rs. 11,842,200 thousand and the corresponding Dividend Distribution Tax is Rs. 2,434,283 thousand, which will be settled after approval at the AGM in the year 2019-20. (Previous year dividend paid Rs. 11,842,200 thousand, dividend distribution tax Rs. 2,434,283 thousand) is shown as appropriations in the profit & loss account.

38. Details of the penalty payable by the Corporation during the year 2018-19 are given below:

	Authority	Non- Compliance/ Violation	Amount in Rs thousand
Sr No.		Non- Compliance/ Violation	Penalty awarded	Penalty Paid	Penalty Waived/ Reduced
1	Insurance Regulatory and Development Authority of India	Nil	Nil	Nil	Nil
2	Service Tax/Goods & Services Tax Authorities	Nil	Nil	Nil	Nil
3	Income Tax Authorities	Nil	Nil	Nil	Nil
4	Any other Tax Authorities	Nil	Nil	Nil	Nil
5	Enforcement Directorate/ Adjudicating Authority/Tribunal or any Authority under FEMA	Nil	Nil	Nil	Nil
6	Registrar of Companies/ NCLT/CLB/ Department of Corporate Affairs or any Authority under Companies Act, 2013	Nil	Nil	Nil	Nil
7	Penalty awarded by any Court/ Tribunal for any matter including claim settlement but excluding compensation	Nil	Nil	Nil	Nil
8	Securities and Exchange Board of India	Nil	Nil	Nil	Nil
9	Competition Commission of India	Nil	Nil	Nil	Nil
10	Any other Central/State/Local Government / Statutory Authority	Nil	Nil	Nil	Nil

> Corporate Accounts

39. Earnings per Share (EPS) as per Accounting Standards 20 issued by ICAI:

	2018-19	2017-18
Profit after Tax	Rs. 2,22,43,058 thousand	Rs. 32,335,845 thousand
Number of equity shares	1,754,400,000	1,735,079,452
Nominal value of share	Rs. 5/-	Rs. 5/-
Basic and Diluted EPS	Rs. 12.68/-	Rs. 18.64/-

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Dilutive potential equity shares are determined independently for each period presented.

The face value of equity share is consolidated from Rs. 1 to Rs. 5 per share. Accordingly, the Earning Per Share, Book Value per share and Dividend per share is based on the face value of 5 per share. During the Year ended 31.03.2019, the Corporation has issued bonus shares in the ratio of 1:1. Accordingly the Earning Per Share, Book Value per share and Dividend per share is based on the increased number of shares.

40. Disclosures as per Accounting Standard - 22 "Accounting for Taxes on Income":

Deferred Tax assets are recognized only if there is a virtual certainty backed by convincing evidence that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

The breakup of Net Deferred Tax Assets is as under:

Particulars	As on 31.03.2019	Deferred Tax Liability	As on 31.03.2018	Deferred Tax Liability
Timing difference on account of difference in WDV as per books & WDV as per Income Tax Act, 1961		114,054	3,995
Provision for employee''s benefits	140,209	-	140,253
Others
Foreign Branches		593		223
TOTAL	140,209	114,647	144,248	223
Net Deferred Tax	25,562		144,024

41. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 8.

42. (a) Till the F.Y. 2013-14, depreciation on fixed assets was

charged on written-down value method at the higher of the rates specified in the Income Tax Rules, 1962 and those specified in Schedule XIV to the Companies Act, 1956. In respect of leasehold properties and intangible assets amortization was made over the period of lease/ use. From the F.Y. 2014 - 15, the Corporation has changed the method of depreciation from written down value to straight line method. However, there is no material impact on the financial statements due to such change in deprecation method.

(a) Pursuant to the enactment of the Companies Act 2013, the corporation has applied the estimated useful lives as specified in schedule II. Accordingly, the un-amortized carrying value is being depreciated / amortized over the revised / remaining useful lives. The written down value of fixed assets whose lives have expired as at April 01, 2014 had been charged to Profit and Loss Account in the F.Y 2014-15.

43. Since the value of Other Liabilities net off Other Assets is negative, the value of other liabilities has been taken as zero, while calculating the policyholders'' fund.

44. Contingent Liabilities:

(a) Paid up investments NIL (Previous year NIL)

(b) Underwriting commitments outstanding NIL (Previous year NIL)

(c) Claims, other than Partly under policies not acknowledged as debts: Rs. 11,000 thousand (Previous year Rs. 11,000 thousand)

(d) Guarantees / LC given by or on behalf of the Corporation Rs. 27,366,024 thousand (Previous year Rs. 19,501,805 thousand)

(e) Statutory demand / liabilities in dispute -Income-tax demands disputed, not provided for Rs. 29,930,036 thousand (Previous year Rs. 17262,332 thousand).

Year-wise break up as follows:

		Rs. in thousand
Sr. No.	Assessment Year	Amount
1	2002-03	694,362
2	2003-04	757,312
3	2004-05	1,879,038
4	2005-06	1,849,956
5	2006-07	2,680,573
6	2007-08	3,126,779
7	2008-09	3,149,757
8	2009-10	1,809,812
9	2011-12	872,334
10	2012-13	1,079,551
11	2013-14	163,957
12	2014-15	71,235
13	2015-16	4,400,620
14	2016-17	7,394,751
	Total	29,930,036

(f) Reinsurance obligations to the extent not provided for in the accounts NIL (Previous year NIL) in view of Significant Accounting Policy No. 2.2.

(g) "Majority of the pending legal/arbitration matters with the Legal Department are very old.

These cases are primarily against the erstwhile subsidiary companies and the Corporation has been impleaded as a proforma respondent because of its erstwhile status of the holding company. In MACT /Hit and Run matters, GIC is wrongly impleaded despite not

46. Performance of Overseas Branches:

being the administrator of the Solatium Scheme. Consequently, no financial impact of such cases is envisaged."

45. GIC is in process of erecting Fire escape staircase at its office premises, for which a premium of Rs. 1,67,71,300/ - has been paid to the MCGM towards open space deficiency and staircase premium. As the whole process is in progress and has not been completed the said amount paid has been accounted under Sundry Advance.

			(Rs. in thousand)
	Dubai	Malaysia	London
Gross Premium	18,180,075	12,562,882	9,104,656
Net Premium	17,669,835	12,235,290	7,158,722
Earned Premium	18,712,093	11,886,955	9,136,787
Incurred Claims	17,501,988	9,404,858	5,824,681
Net Commission	3,989,797	4,111,253	1,933,565
Expenses of Management	272,761	49,232	121,061

	Dubai	Malaysia	London
Profit/(Loss) on Exchange	(132,999)	591,789	4,91,572
Underwriting Profit/(Loss)	(3,185,451)	(1,086,599)	1,749,052
Net Inv. Income in Rev. A/c	376,305	338,073	212,040
Revenue Profit/(Loss)	(2,809,146)	(748,527)	1,961,092

> GENERAL

47. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation is in the process of identifying Micro, Small and Medium Enterprises as defined in above referred act. Hence relevant disclosures are not made. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

48. During the year 2017/18, irregularities in acceptance of reinsurance contracts and short collection of premiums by an employee of the Corporation had been detected and was reported in the Notes forming part of the accounts.

The claim relating to the incident has been settled and recovery will be made from our reinsurers under the Corporation''s Reinsurances Protection Programme.

With regard to the collection of shortfall premiums the recovery from the concerned broker has been made to the extent of USD 391,131 (Rs. 27,058,442.58).

Recovery is being pursued for the balance amount of USD 124,104.75 (Rs. 8,582,624.49). Controls put in place post the incident are being followed and monitored.

49. Major Events occurring after Balance Sheet Date:

There are no major events occurred after Balance sheet Date

50. The Corporation has prepared Cash flow statement adopting the indirect method.

51. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

52. Prior period items have not been separately disclosed, as the amount is not material.

53. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

54. The Accounting Ratios of the Corporation are stated in Annexure II.

55. Figures relating to the previous year have been regrouped / rearranged, wherever necessary.

As per our report of even date		Alice G Vaidyan
For J SINGH & ASSOCIATES	For SAMRIA & CO	Chairman-cum-Managing Director
Chartered Accountants	Chartered Accountants	Atanu Kumar Das	A P Singh
{Firm Regn No. 110266W}	{Firm Regn No. 109043W}	Director	Director
J SINGH	ADHAR SAMRIA	G B Pande	Sashikala Muralidharan
Partner	Partner	Director	Director, GM & CFO
Membership No.: 042023	Membership No.: 049174
		Usha Ramaswamy	Suchita Gupta
Mumbai		Director & GM	Company Secretary
Dated: 23.05.2019

Mar 31, 2018

I. NOTES FORMING PART OF THE ACCOUNTS:

The Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditorsâ Report of Insurance Companies) Regulations, 2002 have been adopted for presentation of the accounts.

> Investments

1. (a) Out of Investment held in shares and debentures of the value of Rs.526,398,152 thousand (Previous Year Rs.496,352,888 thousand) no confirmations regarding actual custody or other documentary evidence for investments in debenture of the value of Rs.682 thousand (Previous year Rs.1,242 thousand) were available.

(b) The number of equity shares actually held by the Corporation/Custodian of the Corporation is in excess of number held as per the books of the Corporation. The face value of such excess is Rs.785 thousand (Previous year Rs.726 thousand) and book value of such excess is Rs.130 thousand (Previous Year Rs.130 thousand).

2. The Fixed Maturity Mutual Fund Schemes are close ended mutual fund schemes with definite maturity date and with indicative returns.

3. (a) Provision includes provision for standard assets @ 0.40% as per IRDAI-Prudential norms for Income recognition, Asset Classification and provisioning and other related methods in respect of debt portfolio amounting to Rs.498,935 thousand (Previous Year Rs.460,032 thousand).

(b) During the year,the Corporation has not undertaken under CDR (Corporate Debt Restructuring) System, any case of restructuring of corporate debt/loan. (Previous Year Rs. NIL)

(c) Pending clarification from IRDAI in respect of applicability of prudential norms, as prescribed by RBI, for provisions on investment in State Government Securities, the Corporation has followed the prudential norms of provisions for loans and advances as prescribed by IRDAI for the said investments.

(d) The Corporation has considered latest available NAV for the provisioning of units of venture capital.The details of latest available NAV considered are as follows:

4. For valuation of actively traded equity shares, 31^st March, 2018 has been considered as closing day.

5. During the year, the corporation has waived/written off debts, loans and interest as follows:

6. There is no difference between title of ownership in respect of CGS/SGS available in physical/demat format vis-a-vis shown in books of accounts. As regards, difference between title of ownership in respect of bonds/ debentures etc. available in physical/demat format vis a vis shown in books of accounts is very old difference.The Corporation has already fully provided for said difference in books of accounts wherever required. Hence during the year, there is no impact in the financial statements.

7. As at 31^st March, 2018 all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India Stock, 7.95% 2032 for Rs.40,000 thousand and 8.20% 2022 for Rs.30,000 thousand, 8.24% 2027 for Rs.171,000 thousand, 8.28% 2027 for Rs.17,500 thousand and 8.33% 2026 for Rs.20,000 thousand, 8.60% 2028 for Rs.80,000 thousand total amounting to Rs.358,500 thousand (Previous year total amounting to Rs.243,500 thousand) and cash deposit of Rs.5,300 thousand (Previous year Rs.5,400 thousand) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

(b) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has provided Fixed Deposits amounting to Rs.200,000 thousand (Previous year Rs.150,000 thousand) as margins in cash segments viz. FDR of Rs.130,000 thousand (Previous year Rs.100,000 thousand) as collateral is held with NSCCL and FDR of Rs.70,000 thousand (Previous year Rs.50,000 thousand) as collateral is held with BSE.

8. The Commitments made and outstanding for Loans, Investments and Fixed Assets (if any) as at 31^st March, 2018 are Rs.704,600 thousand (Previous year Rs.498,142 thousand).

9. Value of contracts in relation to investments, for

a) Purchases, where deliveries are pending Rs. NIL (Previous year Rs. NIL).

b) Sales, where payments are overdue Rs. NIL (Previous year Rs. NIL).

10. The Book Value of investments valued on Fair Value basis is Rs.95,130,527 thousand (Previous year Rs.75,923,101 thousand).

11. The basis of amortization of debt securities is as stated in Significant Accounting Policy No. 9.14.

12. The Corporation does not hold any properties for investment purposes.

13. Provisions regarding unrealized gains/losses have been stated in the Significant Accounting Policy No. 9.7.

> Reinsurance

14. Underwriting of Direct business stopped from 1^st April 2001. Figures included in Revenue Accounts Pertaining to direct business are on account of run-off business. Run-off liabilities are sufficiently provided for based on advices received.

15. The Corporation underwrites some special type of quota share treaties on which Unexpired Risk Reserve (URR) is not required as the maximum loss possible under such treaty is provided through Outstanding Loss Reserve (OSLR) as per the terms of the treaty. Till earlier period the Corporation has been providing URR on such treaties in addition to the OSLR amount. During the current period, the Corporation has not provided URR on such treaties and has also reversed the URR provided on such treaties in the earlier years. If the Corporation had followed the same basis of calculation of URR, Profit Before Tax for the year ended 31^st March, 2018 would have been lower by 265,886 lakh.

16. Structured solution cover:

(i) The Structured Solution Contract was in place for three years from 2014 to 2017. Following the Board decision to place the entire layers of all Classes of Businessâ (COBs) which were under Structured Solutions in the traditional market, new underlying programmes for both Non-Marine Domestic and Non-Marine foreign were renewed as on 1^st June, 2017 and the business was placed traditionally as under:

(a) For Non-Marine Domestic business, for risk and cat perils, the protection was renewed, from ground up to Rs.2,000 Crore with a deductible of Rs.100 Crore for risk and Rs.250 Crore for cat.

(b) For Non-Marine Foreign Inward business, for Middle East Risks and World-wide cat perils, the arrangement was also renewed from ground up cover of USD 25 million with a deductible of USD 15 million.

(ii) Coverage for the cessions on account of following sections which renewed prior to 1^st June, 2017 will be ongoing after the non-renewal date:

Section 1: Risk section of the current period till 31^st May, 2018 (for LOB viz. facultative risks)

Section 3 - Liability: The annual period expires on 31^st January,2018 but being a Risk Attaching Section exposure will continue.

Section 4 - Credit: till 31^st March, 2018 but Risk attaching sections will continue

Section 5 - Marine & Energy: till 30^th April, 2018

Section 7 - Aviation: till 31^st March, 2018

GIC Re and the Reinsurers will maintain all contractual rights and obligations arising out of the contract, till the final closure at a mutually agreed date after both parties agree to the net balance quantum.

The Funds Withheld Experience Account (FWEA) has a positive balance of Rs.4,878,137 thousand as on 31^st March, 2018 which is subject to change due to movements in premium and claims recoveries between 1^st April, 2018 to 31^st May, 2018 (Previous year negative balance Rs.1,793,197 thousand).

17. Premiums, less reinsurance, written from business during the financial year 2017-18 in India are:

Rs.265,072,549 thousand (Previous year Rs.206,795,441 thousand) and outside India are Rs.111,272,029 thousand (Previous year Rs.94,950,125 thousand).

18. Claims less reinsurance during the financial year 2017-18 paid in India are:

Rs.141,286,566 thousand (Previous year Rs.74,605,497 thousand) and outside India are Rs.72,233,042 thousand (Previous year Rs.55,195,405 thousand).

19. Segment Reporting as per Accounting Standard -17 âSegment Reportingâ of ICAI, has been complied with as required by IRDAI (Preparation of Financial Statements and Auditorâs Report of Insurance Companies) Regulations, 2002.

Line of Business wise Segment Revenue Reporting for the year ended 31^st March, 2018.

20. Ageing of claims - distinguishing between claims outstanding for different periods:

Nevertheless, the outstanding losses as intimated by the companies in respect of facultative business are classified according to the outstanding period as per the details given below:

21. Claims settled and remaining unpaid for a period of more than six months as on 31^st March, 2018 Rs. NIL (Previous Year Rs. NIL).

22. Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of Rs.5,545,853 thousand (P.Y. Rs.4,658,317 thousand) for doubtful receivables.

The balances of amount due to/from other persons/ bodies carrying on insurance business and deposits held are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on receipt/confirmation of the same after examination (See note I. 2.4 Provision for Doubtful Debts under Significant Accounting Policy)

23. The Corporation has not provided for catastrophic reserves as IRDAI has not issued any guidelines in this respect.

24. The details of URR adjustment in respect of Dubai and London BO are as under:

25. Life Reinsurance Business:

During the year, the Corporation has made a provision of Rs.909,853 thousand (Previous Year made provision of Rs.921,146 thousand) towards unexpired risk reserve for life business as determined by Life Appointed Actuary, as per IRDA guidelines. (Excluding Re-takaful business).

26. (i) The estimate of claims Incurred but Not Reported [IBNR] claims has been certified by the Companyâs Appointed Actuary.The Appointed Actuary has certified to the Company that the assumptions used for such are appropriate and are in accordance with the requirements of the Insurance Regulatory and Development Authority of India [IRDAI] and Institute of Actuaries of India in concurrence with IRDAI.

(ii) The IBNR provision for Life Re business is certified by the Appointed Actuary - Life Re. It is done using a delay days method. Based on the experience, the adjusted delay days for claims settlement is estimated. For claims reported in less than equal to 1 year the adjusted delay days is applied on the higher of claims paid, incurred or earned premium. For other prior periods it is applied on the claims paid (or reported) to give IBNR for respective delay periods

27. (a) The details on account of revaluation included in the net Outstanding Loss Reserves (OSLR) at the end of the year are as under:

> Human Resources

28. Provision for Productivity Linked Lump-sum Incentive to the employees for the year ended 31^st March, 2018 is Rs.32,000 thousand (Previous Year 25,000 thousand).

29. Employees Benefits

The Corporation has classified the various benefits provided to employees as under:

(i) Pension Superannuation Scheme

(ii) Defined Benefit Plan

(a) Leave Encashment

(b) Gratuity

(iii) Settlement Benefit

During the year Corporation has recognized the following amounts in the Profit and Loss Account based upon the actuary reports:

> Secretarial

30. As per the resolution passed at the Extraordinary General Meeting held on 4^th August, 2017 at GIC Re, Head Office, Mumbai, Share capital of the Corporation was altered by consolidating 1000,00,00,000 (One Thousand Crore) equity shares of Rs.1/- (Rupee One) each into 200.00.00.000 (Two Hundred Crore) equity shares of Rs.5/- (Rupee Five) each.

Consequent to the Initial Public Offer (IPO) of the Corporation, comprising of Fresh Issue of 172.00.000 Equity shares and Offer for Sale of 10,75,00,000 Equity Shares of Rs.5/- (Rupee Five) each, the Issued, Subscribed and Called-up Capital of the Corporation as on 31^st March, 2018, has been changed to Rs.438,60,00,000/-comprising of 87,72,00,000 Equity shares of Rs.5/- each.

Accordingly, the number of equity shares and the face value thereof has been recorded at Rupee Five per share for Authorized, Issued & Subscribed and Called-up Equity Share capital of the Corporation as on 31^st March, 2018 (refer schedule 5 and 5A).

31. The face value of equity share was consolidated from Rs.1 to Rs.5 per share, as approved by shareholders in the Extraordinary General Meeting (EGM) held on 4^th August, 2017. EPS, Diluted EPS, Dividend Per Share and Number of shares outstanding is calculated in the accompanying financial statements based on face value of Rs.5 per equity share for all the reported periods

*Note : GIC Re India Corporate Member has been treated as subsidiary of the Corporation as management control of the same passed on to the Corporation in the F.Y. 2013-14, even though the payment for transfer of shares was done on 29.01.2016.

32. (i) Related party Disclosures as per Accounting Standard - 18 âRelated Party Transactionâ issued by ICAI:

a) Subsidiary Company:

- GIC Re South Africa Ltd., Johannesburg, S.A.

- GIC Re India Corporate Member Limited, London, U.K.

b) Associate Company :

- India International Pte. Limited, Singapore

- Agriculture Insurance Company of India Limited, New Delhi, India

- GIC Bhutan Re Ltd, Bhutan

Nature and volume of transactions: With (a & b) above

(ii) Statement showing Related party disclosures as per AS-18 of ICAI

a. Subsidiaries

33. i) Key Management Personnel:

1. Chief Executive Officer : Mrs. Alice G. Vaidyan

2. Chief Marketing Officer : Mr.Pauly Sukumar N.

3. Chief Investment Officer : Mr. Satyajit Tripathy (upto 22.01.2018)

Chief Investment Officer : Mr. Uttam Kumar Sharma (w.e.f. 22.01.2018)

4. Financial Advisor &

Chief of Internal Audit : Mr. G.C.Gaylong (upto 24.05.2017)

: Mr. D.R. Waghela (w.e.f. 24.05.2017)

5. Chief Financial Officer : Mr. V.C. Jain

6. Chief Risk Officer : Ms. Madhulika Bhaskar

7. Chief Compliance Officer : Ms. Suchita Gupta

8. Appointed Actuary

(General Insurance) : Ms. Priscilla Sinha

9. Appointed Actuary

(Life Insurance) : Ms. Padmaja R. (upto 30.06.2017)

34. In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state- controlled enterprises as regards related party relationships with other state controlled enterprises and transactions with such enterprises.

35. During the year,the Corporation has concluded its Initial Public Offer (IPO) of Rs.1,125,683 Lakh in the month of October 2017 comprising a fresh issue of 1,72,00,000 equity shares aggregating to Rs.155,267 lakh and an offer for sale of 10,75,00,000 equity shares by the Promoter, Ministry of Finance, Government of India aggregating to Rs.970,416 lakh. Pursuant to the Offer of 12,47,00,000 equity shares, the Qualified Institutional Buyers and Non-Institutional Investors were allotted shares at an issue/ Offer price of Rs.912/- per equity share while the Retail Individual Investors and Employees were allotted shares at a discount of Rs.45/- on the Issue/Offer Price i.e. at Rs.867 per equity share.

36. Provision for Initial Public offer(IPO) expenses has been made on estimated basis subject to the finalisation of total IPO expenditure and includes only the share of the Corporation. The total IPO expenses accounted for Rs.504,030 thousands of which share of Govt. Of India works out to Rs.374,784 thousands and share of the Corporation is Rs.129,246 thousands.

37. Proposed Dividend for the year 2017-18

On 30th March 2016, the Ministry of Corporate Affairs has notified the Companies (Accounting Standards) Amendment Rules, 2016, which became applicable w.e.f 30^th March, 2016 for Companies not yet following Ind AS.

As per the amendment to AS 4 (Contingencies and Event Occurring after Balance Sheet Date), if an entity declares dividend to shareholders after the balance sheet date, the entity should not recognize those dividends as a liability on the balance sheet date (because no obligation exists at that time. Such dividends are required to be disclosed in the Notes to Financial Statements.

In view of the amendment to AS 4 as per the Companies (Accounting Standards) Amendment Rules, 2016, the Corporation has not made any provision for Dividend in the Annual Accounts for the year 2017-18.The proposed dividend for the year 2017-18 is Rs.11,842,200 thousand and the corresponding Dividend Distribution Tax is Rs.2,434,199 thousand, which will be settled after approval at the AGM in the year 2018-19. (Previous year dividend paid Rs.10,002,000 thousand, dividend distribution tax Rs.2, 039,872 thousand).

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Dilutive potential equity shares are determined independently for each period presented.

38. Disclosures as per Accounting Standard - 22 âAccounting for Taxes on Incomeâ:

39. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 8.

40. (a) Till the F. Y. 2013-14, depreciation on fixed assets was charged on written-down value method at the higher of the rates specified in the Income Tax Rules, 1962 and those specified in Schedule XIV to the Companies Act, 1956. In respect of leasehold properties and intangible assets amortization was made over the period of lease/use. From the F.Y.2014 - 15,the Corporation has changed the method of depreciation from written down value to straight line method. However, there is no material impact on the financial statements due to such change in deprecation method.

(a) Pursuant to the enactment of the Companies Act 2013, the corporation has applied the estimated useful lives as specified in schedule II. Accordingly, the unamortized carrying value is being depreciated/amortized over the revised/remaining useful lives.The written down value of fixed assets whose lives have expired as at April 01, 2014 had been charged to Profit and Loss Account in the F.Y 2014-15.

41. The financial statements for the year have been prepared on the basis of same accounting policies as adopted in the previous year corresponding year except for the basis of bifurcation of policyholdersâ s fund and shareholdersâ fund. Till previous year, the bifurcation was made in the ratio of Shareholderâs Fund and Policyholderâs Fund respectively at the beginning of the year.The bifurcation is now in the ratio of Shareholderâs Fund and Policyholderâs Fund respectively at the end of each quarter. The said change is necessitated in view of the clarifications received from the Regulator in November 2017 about computation of policyholderâs fund. The impact due to the change is provided in table below:

42. Since the value of Other Liabilities net off Other Assets is negative, the value of other liabilities has been taken as zero, while calculating the policyholdersâ fund.

43. GIC is in process of erecting Fire escape staircase at its office premises, for which a premium of Rs.16,771,300/- has been paid to the MCGM towards open space deficiency and staircase premium. As the whole process is in progress and has not been completed the said amount paid has been accounted under Sundry Advance.

44. Contingent Liabilities:

(a) Paid up investments Rs. NIL (Previous year Rs. NIL)

(b) Underwriting commitments outstanding Rs. NIL (Previous year Rs. NIL)

(c) Claims, other than Partly under policies not acknowledged as debts: Rs.11,000 thousand (Previous year Rs.11,000 thousand)

(d) Guarantees/LC given by or on behalf of the Corporation Rs.19,501,805 thousand (Previous year Rs.15,864,369 thousand)

(e) Statutory demand/liabilities in dispute - Income-tax demands disputed, not provided for Rs.17,262,332 thousand (Previous year Rs.17,298,899 thousand).

(f) Reinsurance obligations to the extent not provided for in the accounts Rs. NIL (Previous year Rs. NIL) in view of Significant Accounting Policy No. 2.2.

(g) Majority of the pending legal/arbitration matters with the Legal Department are very old.

These cases are primarily against the erstwhile subsidiary companies and the Corporation has been impleaded as a proforma respondent because of its erstwhile status of the holding company. In MACT/Hit and Run matters, GIC is wrongly impleaded despite not being the administrator of the Solatium Scheme.

Consequently, no financial impact of such cases is envisaged.

> GENERAL

45. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation is in the process of identifying Micro, Small and Medium Enterprises as defined in above referred act. Hence relevant disclosures are not made. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

46. During the year under review,irregularities in acceptance of reinsurance contracts and short collection of premium by an employee of the Corporation had been detected.

In a case where the competent authority had declined the acceptance of a Facultative risk (since it was not within the risk appetite), the employee had conveyed acceptance of the same through the Broker. Under this contract, a loss amounting to EUR 5.4 million (INR 433,200 thousand) has been reported. This was a major loss for leading insurers/reinsurers in the world. Even GIC has suffered this loss through other authorized acceptances.

There is a possibility of recovery under the Corporationâs Reinsurance Protection Programme.

There were also certain cases of short remittances of premium amounting to USD 636,376 (Rs.41,400 thousand), out of which USD 477,376 (? 31,100 thousand) has been recovered from/agreed to be paid by the Broker concerned. For the balance amounting to USD159,000 (Rs.10,300 thousand) recovery is being pursued.

After the incidence, the process and procedure have been reviewed and controls/Maker-Checker system have been strengthened in the department. Further, the

47. The Corporation has prepared Cash flow statement adopting the indirect method.

48. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

49. Prior period items have not been separately disclosed, as the amount is not material.

Enterprise Risk Management department has formulated detailed Standard Operating Procedure (SOP) for various underwriting departments, Business Accounts Section and Claims Vertical for strengthening the systems and control ensuring all important functions follow the four-eye policy of Maker-Checker.

50. Major Events occurring after Balance Sheet Date:

Following is the detail of one major loss reported by ICICI Lombard GIC and Reliance Gen. Ins, which occurred during the month of April 2018:

51. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

52. The Accounting Ratios of the Corporation are stated in Annexure II.

53. Figures relating to the previous year have been regrouped/rearranged, wherever necessary.

Mar 31, 2017

II. NOTES FORMING PART OF THE ACCOUNTS:

> Investments

1. (a) Out of Investment held in shares and debentures of the value of 496,352,888 Thousand (Previous Year 418,345,527 thousand) no confirmations regarding actual custody or other documentary evidence for investments in debenture of the value of 1,242 Thousand (Previous year 1,221 thousand) were available.

2. The Fixed Maturity Mutual Fund Schemes are close ended mutual fund schemes with definite maturity date and with indicative returns.

3.(a) Provision includes provision for standard assets @ 0.40% as per IRDAI-Prudential norms for Income recognition, Asset Classification and provisioning and other related methods in respect of debt portfolio amounting to 460,032 thousand (Previous Year 419,704 thousand).

(b) During the year, the Corporation has undertaken under CDR (Corporate Debt Restructuring) System, following fresh cases of restructuring of corporate debt/loans etc., as under:

4. For valuation of actively traded equity shares, March 31, 2017 has been considered as closing day.

6. There is no difference between title of ownership in respect of CGS/SGS available in physical/demat format vis-a-vis shown in books of accounts. As regards, difference between title of ownership in respect of bonds/debentures etc. available in physical/ demat format vis a vis shown in books of accounts is very old difference. The Corporation has already fully provided for said difference in books of accounts wherever required. Hence during the year, there is no impact in the financial statements.

7. As at 31st March, 2017 all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India Stock, 7.95% 2032 for '' 40,008 thousand and, 8.07% 2017 for '' Nil and 8.20% 2022 for '' 29,976 thousand, 8.24% 2027 for '' 56,015 thousand, 8.28% 2027 for '' 97,413 thousand and 8.33% 2026 for '' 19,782 thousand total amounting to '' 243,194 thousand (Previous year total amounting to '' 184,718 thousand) and cash deposit of '' 5,300 thousand (Previous year '' 4,100 thousand) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

(b) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has provided Fixed Deposits amounting to Rs, 150,000 thousand (Previous year Rs, 150,000 thousand) as margins in cash segments viz. FDR of Rs, 100,000 thousand (Previous year Rs, 100,000 thousand) as collateral is held with NSCCL and FDR of Rs, 50,000 thousand (Previous year Rs, 50,000 thousand) as collateral is held with BSE.

8. The Commitments made and outstanding for Loans, Investments and Fixed Assets (if any) as at 31st March, 2017 are Rs, 498,142 thousand (Previous year Rs, 256,685 thousand).

9. Value of contracts in relation to investments, for

a) Purchases, where deliveries are pending Rs, NIL (Previous year Rs, NIL).

b) Sales, where payments are overdue Rs, NIL (Previous year Rs, NIL).

10. The book value of investments valued on Fair Value basis is Rs, 75,923,101 thousand (Previous year Rs, 75,083,599 thousand).

11. The basis of amortization of debt securities is as stated in Significant Accounting Policy No. 9.14.

12. The Corporation does not hold any properties for investment purposes.

13. Provisions regarding unrealized gains/losses have been stated in the Significant Accounting Policies No. 9.7.

14. In view of the change in Valuation method of Equity Exchange Traded Fund (ETF) from NAV basis to Equity basis, the Fair Value of ETF holding is reduced by Rs,

547.8 thousand.

> Reinsurance

15. Underwriting of Direct business stopped from 1st April 2001.Figures included in Revenue Accounts pertaining to direct business are on account of run-off business. Run-off liabilities are sufficiently provided for based on advices received.

16. Structured solution cover:

In 2014-15, GIC Re entered into a new three year agreement i.e. Structured Solution incepting on 01.06.2014.

The Structured Solutions contract was reviewed and renewed w.e.f. 01.06.2015 on the expiring terms and conditions as under:

- For Non-Marine Domestic business, for risk and cat perils, the protection was renewed, as expiring i.e. from ground up cover of Rs, 20,000,000 thousand with a deductible of Rs, 1,000,000 thousand.

- For non-marine Foreign Inward business, for risk and cat perils, the arrangement was also renewed as expiring i.e. from ground up cover of USD 20 mln. with a deductible of USD 10 mln.

- The arrangement was also renewed to protect exposures of other classes of business both in domestic and foreign.

The Structured Solutions contract was reviewed and renewed for period of two years viz. 01.06.2015 to 31.5.2016 and 01.06.2016 to 31.05.2017 on the expiring terms and conditions. Following the Board decision to consider traditional markets for the classes ceded under the Structured Solutions, a Notice of non-renewal of the contract was issued to the Structured Solutions reinsurers, which is effective from 1st June 2017.

The Funds Withheld Experience Account (FWEA) has a negative balance of Rs, 1,793,197 thousand as on 31.03.2017 which is subject to change due to movements in premium and claim recoveries between 01.04.2017 to 31.05.2017 (Previous year negative balance Rs, 3,343,548 thousand).

17. Premiums, less reinsurance, written from business during the financial year 2016-17 in India are:

Rs, 206,795,441 thousand (Previous year Rs, 87,363,257 thousand) and outside India are Rs, 94,950,125 thousand (Previous year Rs, 76,384,590 thousand).

Rs, 74,605,497 thousand (Previous year Rs, 68,825,911 thousand) and outside India are Rs, 55,195,405 thousand (Previous year Rs, 46,231,846 thousand).

19. Segment Reporting as per Accounting Standard -17 "Segment Reporting" of ICAI, has been complied with as required by IRDAI (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002.

20. Ageing of claims - distinguishing between claims outstanding for different periods:

Nevertheless the outstanding losses as intimated by the companies in respect of facultative business are classified according to the outstanding period as per the details given below:

21. Claims settled and remaining unpaid for a period of more than six months as on 31-03-2017 '' NIL (Previous Year '' NIL).

22. Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of Rs, 4,658,317 thousand (P.Y Rs, 2,356,666 thousand) for doubtful receivables.

The balances of amount due to/from other persons/ bodies carrying on insurance business and deposits held are subject to confirmation/reconciliation. Adjustments, if any,will be accounted for on receipt/ confirmation of the same after examination.

23. The Corporation has not provided for catastrophic reserves as IRDAI has not issued any guidelines in this respect.

24. The details of URR adjustment in respect of Dubai and London BO are as under:

25. a. Non-Life Reinsurance Business -URR:

The impact due to change in accounting policy of URR for marine cargo is given below:

In case of Marine Cargo, had the Corporation followed the earlier policy of providing URR on 100% basis, URR provision on Marine Cargo business would have been higher by Rs, 195,33,35 thousand and the profit after tax would have been lower by Rs, 153,64,54 thousand.

b. Life Reinsurance Business:

During the year, the Corporation has made a provision of Rs, 921,146 thousand (Previous Year Rs, 518,952 thousand) towards unexpired risk reserve for life business as determined by Life Appointed Actuary, as per IRDA guidelines. (Excluding Re-takaful business).

26. (i) The estimate of claims Incurred But Not Reported [IBNR] claims has been certified by the Company''s Appointed Actuary. The Appointed Actuary has certified to the Company that the assumptions used for such are appropriate and are in accordance with the requirements of the Insurance Regulatory and Development Authority of India [IRDAI] and Institute of Actuaries of India in concurrence with IRDAI.

(ii) The IBNR provision for Life Re business is certified by the Appointed Actuary - Life '' It is done using a delay days method. Based on the past experience, the delay days for claims settlement is estimated and applied on the higher of claims paid, incurred or earned premium. This method is same as used last year.

27. Impact of change in accounting policy of Premium Deficiency Reserve

In case of Non-Life Business segments, there is no impact of change.

In case of Life Re, had the Corporation followed the earlier policy of providing PDR on Life Re as difference between the earned premium and incurred claims, PDR provision on Life Re business would have been Rs, 1,097,596 thousand and the profit after tax would have been lower by Rs, 863,347 thousand.

28. The balance of amount of service tax is subject to reconciliation with service tax returns. The financial impact thereof is not material.

30. Terrorism Pool Assets and Liabilities:

The Corporation has been managing Terrorism Pool funds in the capacity of pool manager and was showing Pool assets (Schedule 12) and liabilities (Schedule 13) of equal amounts in GIC Re books from inception till the FY 2015-16. As GIC Re is only the pool manager, the Assets and Liabilities of the Pool do not belong to GIC Re,therefore, Management has decided not to include the Assets and Liabilities of the Pool in GIC Re financial statements from the financial year 2016-17 onwards. The Pool had an accumulated fund of Rs, 63,310,760 thousand as on 31.03.2017 (Previous year Rs, 55,475,318 thousand).

> Human Resources

31. Provision for Productivity Linked Lump-sum Incentive to the employees for the year ended 31^st March 2017 Rs, 25,000 thousand (Previous Year Rs, NIL thousand).

32. Employees Benefits

The Corporation has classified the various benefits provided to employees as under:

(i) Pension Superannuation Scheme

(ii) Defined Benefit Plan

(a) Leave Encashment

(b) Gratuity

(iii) Settlement Benefit

During the year Corporation has recognized the following amounts in the Profit And Loss Account based upon the actuary reports:

> Secretarial

33. As per the resolution passed at the Extraordinary General Meeting held on 04th February 2016 at GIC Re, Head Office, Mumbai, it was approved to subdivide 10,00,00,000 (Ten crore) equity shares of 100/- (Rupee One hundred) each into 1000,00,00,000 (One Thousand Crore) equity shares of 1/- ( Rupee One) each .

Accordingly, the number of equity shares and the face value thereof has been recorded at Rupee One per share for Authorized, Issued, Subscribed and Called-up Equity Share capital of the Corporation as on 31.03.2017 (refer schedule 5 and 5A).

35.(i) Related party Disclosures as per Accounting Standard - 18 "Related Party Transaction" issued by ICAI:

a) Subsidiary Company:

- GIC Re South Africa Ltd., Johannesburg, S.A.

- GIC Re India Corporate Member Limited, London, U.K.

b) Associate Company :

- India International Pte. Limited, Singapore

- Agriculture Insurance Company of India Limited, New Delhi, India

- GIC Bhutan Re Ltd, Bhutan

c) Key Management Personnel:

- Mrs. Alice G. Vaidyan, Chairman cum Managing Director

- Mr. Pauly Sukumar N, Chief Marketing Officer

- Mr. Satyajit Tripathy, Chief Investment Officer

- Mr. G C Gaylong, Chief of Internal Audit

- Mr. V C Jain, Chief Financial Officer

- Ms. Madhulika Bhaskar, Chief Risk Officer

- Ms. Suchita Gupta, Chief Compliance Officer

- Ms. Priscilla Sinha, Appointed Actuary (General Insurance)

- Ms. Padmaja R., Appointed Actuary (Life Insurance)

Nature and volume of transactions: With (a&b) above

35. (ii) Statement Showing Related Party Disclosures as per AS-18 of ICAI.

35.(iii) In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

36. Proposed Dividend for the year 2016-17

On 30th March 2016, the Ministry of Corporate Affairs has notified the Companies (Accounting Standards) Amendment Rules, 2016, which became applicable w.e.f 30.03.2016 for Companies not yet following Ind AS.

As per the amendment to AS 4 (Contingencies and Event Occurring after Balance Sheet Date), if an entity declares dividend to shareholders after the balance sheet date, the entity should not recognize those dividends as a liability on the balance sheet date (because no obligation exists at that time). Such dividends are required to be disclosed in the Notes to Financial Statements.

In view of the amendment to AS 4 as per the Companies (Accounting Standards) Amendment Rules, 2016, the Corporation has not made any provision for Dividend in the Annual Accounts for the year 2016-17. The proposed dividend for the year 2016-17 is Rs, 10,020,000 thousand and the corresponding Dividend Distribution Tax is Rs, 2,039,872 thousand, which will be settled after approval at the AGM in the year 2017-18. (Previous year dividend paid Rs, 8,600,000 thousand, dividend distribution tax Rs, 1, 750,788 thousand).

are adjusted for the proceeds receivable had the shares been actually issued at fair value. Dilutive potential equity shares are determined independently for each period presented.

40. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 8.

41. (a) Till the F. Y.2013-14,depreciation on fixed assets was charged on written-down value method at the higher of the rates specified in the Income Tax Rules, 1962 and those specified in Schedule XIV to the Companies Act, 1956. In respect of leasehold properties and intangible assets amortization was made over the period of lease/use. From the F.Y. 2014 - 15, the Corporation has changed the method of depreciation from written down value to straight line method. However, there is no material impact on the financial statements due to such change in deprecation method.

(b) Pursuant to the enactment of the Companies Act 2013, the corporation has applied the estimated useful lives as specified in schedule II. Accordingly the un-amortized carrying value is being depreciated/amortized over the revised/remaining useful lives. The written down value of fixed assets whose lives have expired as at April 01, 2014 had been charged to Profit and Loss Account in the F.Y. 2014-15.

42. Contingent Liabilities:

(a) Partly paid up investments Rs, NIL (Previous year Rs, NIL)

(b) Underwriting commitments outstanding Rs, NIL (Previous year Rs, NIL)

(d) Guarantees/LC given by or on behalf of the Corporation Rs, 15,864,369 thousand (Previous year Rs, 10,617,681 thousand).

(e) Statutory demand/liabilities in dispute - Income-tax demands disputed, not provided for Rs, 17,298,899 thousand (Previous year Rs, 17,027,139 thousand).

(g) Reinsurance obligations to the extent not provided for in the accounts (Previous year NIL) in view of Significant Accounting Policy No. 2.2.

(h) Majority of the pending legal/arbitration matters with the Legal Department are very old.

These cases are primarily against the erstwhile subsidiary companies and the Corporation has been impleaded as a proforma respondent because of its erstwhile status of the holding company. In MACT/Hit and Run matters, GIC is wrongly impleaded despite not being the administrator of the Solatium Scheme.

Consequently, no financial impact of such cases is envisaged.

> GENERAL

44. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation is in the process of identifying Micro, Small and Medium Enterprises as defined in above referred act. Hence relevant disclosures are not made. The Corporation has neither received any claims for interest nor provided any interest payable to Micro, Small and Medium Enterprises as required by aforesaid act.

For the purposes of this clause, the term ''Specified Bank Notes''shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

# The Corporation has accepted SBNs from employees at the time of settlement of travel advance given to them and deposited the same in bank.

46. Major Events occurring after Balance Sheet Date:

Following is the detail of one major loss reported by New India Assurance Co. Ltd., which occurred during the month of April 2017:

47. The Corporation has prepared Cash flow statement adopting the indirect method.

48. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

49. Prior period items have not been separately disclosed, as the amount is not material.

50. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

51. The Dubai Branch of the Corporation had faced a case of internet fraud which had resulted in improper transfer of USD 1,427,040 from the Branch office USD Account with Bank of Baroda, Dubai BO to PNC Bank A/C of Washington, US.

Through concerted efforts, the amount of USD 1,427,025 (USD 1,427,040 less bank charges of USD 25) was recovered and remitted back to the account with Bank of Baroda Dubai BO on 20.08.2016. The said amount is placed in a fixed deposit with the said Bank since recovery.

52. The Accounting Ratios of the Corporation are stated in Annexure II.

53. Figures relating to the previous year have been regrouped/rearranged,wherever necessary.

Mar 31, 2016

^ Investments

1.(a)Out of Investment held in shares and debentures of the value of '' 418,345,527 thousand (Previous Year 444,695,692 thousand) no confirmations regarding actual custody or other documentary evidence for investments in debenture of the value of '' 1221 thousand (Previous year '' 1221 thousand) were available.

2. The Fixed Maturity Mutual Fund Schemes are close ended mutual fund schemes with definite maturity date and with indicative returns.

3.(a)Provision includes provision for standard assets @ 0.40% as per IRDAI-Prudential norms for Income recognition, Asset Classification and provisioning and other related methods in respect of debt portfolio amounting to '' 419,704 thousand (Previous Year '' 377,720 thousand).

4. For valuation of actively traded equity shares, March 31, 2016 has been considered as closing day.

6. There is no difference between title of ownership in respect of CGS/SGS available in physical/demat format vis-a-vis shown in books of accounts. As regards, difference between title of ownership in respect of bonds/debentures etc. available in physical/demat format vis a vis shown in books of accounts is very old difference. The Corporation has already fully provided for said difference in books of accounts wherever required. Hence during the year, there is no impact in the financial statements.

7. As at 31st March, 2016 all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India stock 12.30%, 2016 deposited with Bank of India as security under Section 7 of the Insurance Act, 1938 is now NIL (Previous year '' 295,315 thousand) being withdrawn as per IRDAI circular dated 30.04.2015.

(b) The Government of India Stock, 7.95% 2032 for '' 10,094 thousand and, 8.07% 2017 for '' 10,032 thousand and 8.20% 2022 for '' 29,977 thousand, 8.24% 2027 for '' 17,420 thousand, 8.28% 2027 for '' 97,413 thousand and 8.33% 2026 for '' 19,782 thousand total amounting to '' 184,718 thousand (Previous year total amounting to '' 183,840 thousand) and cash deposit of '' 4100 thousand (Previous year 4100 thousand) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

(c) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has provided Fixed Deposits amounting to '' 150,000 thousand (Previous year '' 80,000 thousand) as margins in cash segments viz. FDR of '' 100,000 thousand (Previous year 50,000 thousand) as collateral is held with NSCCL and FDR of '' 50,000 thousand (Previous year '' 30,000 thousand) as collateral is held with BSE.

(d) Margin FDR held by Bank for issue as LC/BG of '' 10,607,018 thousand (Previous year '' 83,52,709 thousand).

8. The Commitments made and outstanding for Loans, Investments and Fixed Assets (if any) as at 31st March, 2016 are Rs, 256,685 thousand (Previous year Rs, 510,821 thousand).

9. Value of contracts in relation to investments, for

a) Purchases, where deliveries are pending Rs, NIL (Previous year NIL).

b) Sales, where payments are overdue Rs, NIL (Previous year NIL).

10. The historical cost of investments valued on Fair Value basis is Rs, 75,083,599 thousand

(Previous year Rs, 70,440,575 thousand).

11. The basis of amortization of debt securities is as stated in Significant Accounting Policy No. 7.14.

12. The Corporation does not hold any properties for investment purposes.

13. Provisions regarding unrealized gains/losses have been stated in the Significant Accounting Policies No. 7.7.

> Reinsurance

14. Underwriting of Direct business stopped from 1st April 2001. Figures are included in Revenue Accounts pertain to run-off business. Run-off liabilities are sufficiently provided for based on advices received.

15. Structured solution cover:

In 2014-15, GIC Re entered into a new three year agreement i.e.Structured Solution incepting on 01.06.2014. The Structured Solutions contract was reviewed and renewed w.e.f. 01.06.2015 on the expiring terms and conditions as under:

- For Non-Marine Domestic business, for risk and cat perils, the protection was renewed, as expiring i.e. from ground up cover of INR 2,000 crore with a deductible of INR 100 Crore.

- For non-marine Foreign Inward business, for risk and cat perils, the arrangement was also renewed as expiring i.e. from ground up cover of USD 20 mln.with a deductible of USD 10 mln.

- The arrangement was also renewed to protect exposures of other classes of business both in domestic and foreign.

As per terms of the contract, the reinsurers are required to tender a notice of cancellation at least 30 days prior to the annual anniversary date of the contract. However, no reinsurer on the panel for this contract had tendered a notice of termination by the due date of 30.04.2016. Hence, technically, the contract cannot be cancelled for the period 1.6.2016 to 31.5.2017. Therefore, no non-renewal premium is payable as on 31.05.2016 as the contract is renewed for the period 01.06.2016 to 31.05.2017.

As per the contract, in case the contract is not renewed on the annual anniversary date i.e. 31.05.2017, as per the treaty terms the net balance of the Structured Solution arrangement named as Funds Withheld Experience Account (FWEA) will be dealt with as follows:

a) If the net balance of the FWEA is in a surplus position (positive), then GIC Re will receive from the reinsurer a profit commission equal to 100% of the gross balance of the FWEA on the annual anniversary date.

b) If the net balance of the FWEA is in a deficit position (negative), then a non-renewal premium equivalent of 85% of the net negative FWEA balance is to be paid by GIC Re to the reinsurers. GIC Re will then receive, in return, the net present value of the outstanding liabilities (net of corresponding reinstatement premium).

It may be mentioned that as on 31.03.2016, the FWEA Balance is negative to the tune of INR 334 crore as advised by the concerned broker, which is subject to change up to next renewal date i.e.

31.05.2017 due to movements in premium and claim recoveries during the period. If the treaty is discontinued on the renewal date, then the final balance will be ascertained and dealt with as per treaty terms mentioned above.

16 Premiums, less reinsurance, written from business during the financial year 2015-16 in India are: Rs, 87,363,257 thousand (Previous year Rs, 76,927,547 thousand) and outside India are Rs, 76,384,590 thousand (Previous year Rs, 61,642,588 thousand).

17. Claims less reinsurance during the financial year

2015-16 paid in India are: Rs, 68,825,911 thousand (Previous year Rs, 74,291,697 thousand) and outside India are Rs, 46,231,846 thousand (Previous year Rs, 48,260,116 thousand).

18. Segment Reporting as per Accounting Standard -17 "Segment Reporting" of ICAI, has been complied with as required by IRDAI (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002.

19. Ageing of claims - distinguishing between claims outstanding for different periods:

20. Claims settled and remaining unpaid for a period of more than six months as on 31-03-2016 '' NIL (Previous Year '' NIL).

21. Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with persons/bodies carrying on insurance/reinsurance business. The Corporation has provided a cumulative provision of Rs, 2,356,666 thousand (P.Y Rs, 3,935,192 thousand) for doubtful receivables.

22. The Corporation has not provided for catastrophic reserves as IRDAI has not issued any guidelines in this respect.

23. Additional Provision of Rs, 101,517 thousand has been made in respect of Reserve for Unexpired Risk as required by IRDAI for 2015-16 for London Branch (Previous year Rs, 52,571 thousand).

24. During the year, the Corporation has made a provision of Rs, 518,952 thousand (Previous Year Rs, 365,702 thousand) towards unexpired risk reserve for life business as determined by Life Appointed Actuary, as per IRDA guidelines. (Excluding Re-takaful business)

25. The provision for claims incurred but not reported (IBNR) for non -life business is made as certified by the appointed actuary. For GIC Re Head Office, the actuary has adopted a chain ladder method for determining the IBNR provision for the non-life business. The method assumes that trends in the historic data will broadly be followed in the future. For the most recent underwriting periods the chain ladder IBNR estimate is modified using a credibility weighting approach that relies on a-priori estimates of loss ratios, this approach is known as the Bornhuetter Ferguson ("BF") method. The BF method is designed to reduce the statistical variability in the IBNR estimates for the least developed underwriting years. The IBNR for GIC Re Branch Offices has been calculated and certified by the respective actuary of the branches.

Since the earned premium for each of the above revenue accounts is more than the incurred Claims, no PDR is recognized for the FY 2015-16 (Refer Significant accounting Policy No. 11).

27. The balance of amount of service tax is subject to reconciliation with service tax returns. The financial impact thereof is not material.

26. As per Corrigendum dated 03.07.2013 on Master Circular dated 05.10.2012 issued by the Insurance Regulatory and Development Authority of India (IRDAI), the basis of computation of Premium Deficiency Reserve (PDR) is required to be disclosed under "Notes forming Part of Accounts"

> Human Resources

29. Provision for Productivity Linked Lump-sum Incentive to the employees for the year ended 31^st March 2016 Rs, NIL (Previous Year Rs, 16,800 thousand).

(i) Pension Superannuation Scheme

(ii) Defined Benefit Plan

(a) Leave Encashment

(b) Gratuity

(iii) Settlement Benefit

During the year Corporation has recognized the following amounts in the Profit And Loss Account based upon the actuary reports:

30.(i) Related party Disclosures as per Accounting Standard - 18 "Related Party Transaction" issued by ICAI:

a) Subsidiary Company:

- GIC Re South Africa Ltd., Johannesburg, S.A.

- GIC Re India Corporate Member Limited, London, U.K.

b) Associate Company :

- India International Pte. Limited, Singapore

- Agriculture Insurance Company of India Limited, New Delhi, India

- GIC Bhutan Re Ltd, Bhutan

c) Key Management Personnel:

- Smt. Alice Vaidyan, CMD (w.e.f. 23.01.2016)

- Shri K Sanath Kumar, Acting CMD (up to 18.02.2016)

- Shri A.K. Roy, CMD (up to 31.07.2015)

- Smt. Suchita Gupta, Company Secretary

- Smt. Alice Vaidyan, CFO (Up to 04.09.2015)

- Shri V C Jain, CFO (w.e.f. 04.09.2015)

- Shri G C Gaylong, Whole Time Director (w.e.f. 27.01.2016)

Nature and volume of transactions: With (a&b) above

31. The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 5.3.

32. (a) Till the F. Y. 2013-14, depreciation on fixed assets was charged on written-down value method at the higher of the rates specified in the Income Tax Rules, 1962 and those specified in Schedule XIV to the Companies Act, 1956. In respect of leasehold properties and intangible assets amortization was made over the period of lease/use. From the F.Y. 2014 - 15, the Corporation has changed the method of depreciation from written down value to straight line method. However, there is no material impact on the financial statements due to such change in deprecation method.

(b) Pursuant to the enactment of the Companies Act 2013, the corporation has applied the estimated useful lives as specified in schedule II. Accordingly, the un-amortized carrying value is being depreciated/amortized over the revised/remaining useful lives. The written down value of fixed assets whose lives have expired as at April 01, 2014 had been charged to Profit and Loss Account in the F.Y 2014-15.

33. Contingent Liabilities:

(a) Partly paid up investments Rs, Nil (Previous year NIL)

(b) Underwriting commitments outstanding Rs, NIL (Previous year NIL)

(d) Guarantees/LC given by or on behalf of the Corporation Rs, 10,607,018 thousand (Previous year Rs, 8,352,709 thousand).

(e) Statutory demand/liabilities in dispute -Income-tax demands disputed, not provided for Rs, 17,027,139 Thousand (Previous year Rs, 22,496,974 thousand).

(f) Reinsurance obligations to the extent not provided for in the accounts NIL (Previous year NIL) in view of Significant Accounting Policy No. 2.1.

(g) Pending legal/arbitration cases are very old. These cases are primarily against the erstwhile subsidiary companies and the Corporation has been impleaded as a proforma respondent because of its erstwhile status of the holding company. No financial impact of such cases is envisaged.

34. The Corporation has prepared Cash flow statement adopting the indirect method.

35. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

36. Prior period items have not been separately disclosed, as the amount is not material.

37. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

48. During the year a fraud on the Dubai branch of the Corporation, on account of unauthorized bank transfer of USD 14,27,040/- (equivalent to Rs, 9,45,41,400/- approximately) from Bank of Baroda, Dubai, account number 90010200006032 on June 04, 2015, to PNC Bank A/C of Washington, US has

been noticed and reported. The funds have been located and the bank account has been frozen by the US Government Authorities.The Corporation has taken appropriate legal steps for recovery of the amount including filing Letter Rogatory with appropriate US authorities. Recovery proceedings have been initiated and Corporation is confident of recovery of entire amount. Pending recovery, the amount is shown under the head receivable from debtors as suspense account.

39. The Accounting Ratios of the Corporation are stated in Annexure II.

40. Figures relating to the previous year have be

Mar 31, 2015

NOTES FORMING PARTOFTHEACCOUNTS:

1. The Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 have been adopted for presentation of the accounts.

(a) Out of investment held in shares a nd debentures of the value of Rs, 444,695,692 thousand (Previous year Rs, 360,702,862 thousand), no confirmations regarding actual custody or other documentary evidence for investments of the book value of Rs, 1221 thousand (Previous year Rs, 1221 thousand) were available.

(b) The number of shares / debentures actually held by the Corporation / Custodian of the Corporation is in excess of number held as per the books of the Corporation. The face value of such excess is Rs, 546 thousand (Previous year Rs, 553 thousand).

(c) The Fixed Maturity Mutual Fund Schemes are close ended mutual fund schemes with definite maturity date and with indicative returns.

2. (a) Provision for standard assets @ 0.40% has been made as per IRDA-Prudential norms for Income recognition, Asset Classification and provisioning and other related methods in respect of debt portfolio amounting to Rs, 377,720 thousand (Previous Year Rs, 345,507 thousand).

(b) During the year, the Corporation has undertaken under CDR (Corporate Debt Restructuring) System, following fresh cases of restructuring of corporate debt / loans etc., as under:

(e) For valuation of actively traded equity shares, March 31, 2015 has been considered as closing day.

(g) There is no difference between title of ownership in respect of CGS/SGS available in physical/demat formatives-a-vis shown in books of accounts. As regards, difference between title of ownership in respect of bonds/debentures etc available in physical / demat format vis a vis shown in books of accounts is very old difference. The Corporation has already fully provided for said difference in books of accounts wherever required. Hence during the year, there is no impact in the financial statements.

(c) Pending clarification from IRDA in respect of applicability of prudential norms, as prescribed by RBI, for provisions on investment in State Government Securities, the Corporation has followed the prudential norms of provisions for loans and advances as prescribed by IRDA for the said investments.

3. A provision of Rs, 16,800 thousand (previous year Rs, 16,800 thousand) has been made for Productivity Linked Lump-sum Incentive to the employeesfortheyearended31st March, 2015.

4. Corporation has put in place system of continuous reconciliation and monitoring of balances on an ongoing basis with persons/bodies carrying on insurance/reinsurance business. The corporation has provided a cumulative provision of Rs, 3,935,192 thousand (P.Y Rs, 2,860,070 thousand) for doubtful receivables.

The balances of amount due to/from other

6. Structured solution cover:

In 2014-15, GIC Re entered into a new three year agreement i.e. Structured Solution incepting on 01.06.2014. This arrangement provides protection for non-marine Domestic business, for risk and cat perils, from ground up cover of INR 2,000 crore with a deductible of INR 100 Crore. For non-marine Foreign Inward business, for risk and cat perils, the arrangement provides from ground up cover of USD 20 Million with a deductible of USD 10 Million. This arrangement also takes exposures of domestic and foreign business from other classes.

7. Underwriting of Direct business stopped from 1st April 2001. Figures are included in Revenue Accounts pertain to run-off business. Run-off liabilities are sufficiently provided for based on advices received.

persons/bodies carrying on insurance business and deposits held are subject to confirmation / reconciliation. Adjustments, if any, will be accounted for on receipt/confirmation of the same after examination.

5. Disclosure as per Accounting Standard - 22 "Accounting for Taxes on Income":

Deferred Tax assets are recognized only if there is a virtual certainly backed by convincing evidence that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

8. Disclosures forming part of financial statements as required by the IRDA (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations,2002:

9.1 Contingent Liabilities:

(a) Partly paid up investments Rs, NIL (Previous year Rs, NIL)

(b) Underwriting commitments outstanding Rs, NIL (Previous year Rs, NIL)

(d) Guarantees / LC given by or on behalf of the Corporation Rs, 8,35,27,09 thousand (Previous year Rs, 9,161,472thousand). A

(e) Statutory demand / liabilities in dispute -Income-tax demands disputed, not provided for Rs, 22,496,974 thousand (Previous year Rs, 21,199,250 thousand).

(f) Reinsurance obligations to the extent not provided for in the accounts NIL(Previous year NIL) in view of Significant Accounting Policy No. 2.1.

(g) Pending legal / arbitration cases are very old. These cases are primarily against the erstwhile subsidiary companies and the corporation has been imp leaded as a performance respondent because of its erstwhile status of the holding company. No financial impact of such cases is envisaged.

10 As at 31st March, 2015 all the assets of the Corporation in and outside India are free from encumbrances except for:

(a) The Government of India stock 12.30%, 2016 for Rs, 295,315 thousand (Previous year 12.30%, 2016 for Rs, 297,370thousand) deposited with Bank of India as security under Section 7 of the Insurance A ct, 1938 and,

(b) The Government of India Stock, 7.95% 2032 for Rs, 10,100 thousands and, 8.07% 2017 for Rs, 10,073 thousands and 8.20% 2022 for Rs, 29,976 thousands, 8.24% 2027 for Rs, 17,421 thousands, 8.28% 2027 for Rs, 17,360 thousands and 8.33% 2026 for Rs, 98,910 thousands total amounting to Rs, 183,840 thousands (Previous year total amounting to Rs, 149,105 thousands) and cash deposit of Rs, 4100 thousands (Previous year 4100 thousands) with Clearing Corporation of India Limited as deposit towards Settlement Guarantee Fund.

(c) In view of margin requirements as recommended by SEBI vide Circular dated 19/03/2008, Corporation has provided Fixed Deposits amounting to Rs, 80,000 thousand (Previous year Rs, 80,000 thousand) as margins in cash segments viz. FDR of Rs, 50,000 thousand (Previous year Rs, 50,000 thousand) as collateral is held with NSCCL and FDR of 30,000thousand(Previous year Rs, 30,000 thousand) as collateral is held with BSE.

(d) Margin FDR held by Bank for issue as LC/BG of Rs, 8,352,709 thousand (Previous year Rs, 9,161,472 thousand).

9.3 The Commitments made and outstanding for Loans, Investments and Fixed Assets (if a ny) a s a t 31st March, 2015 are Rs, 510,821 thousand (Previous year Rs, 1,072,789 thousand).

9.4 Disclosures of Claims less reinsurance during the financial year 2014-15 paid in India are Rs, 74,291,697 thousand (Previous year Rs, 58,629,384 thousand) and outside India are Rs, 48,260,116 thousand (Previous year Rs, 48,905,296thousand).

9.5 Ageing of claims - distinguishing between claims outstanding for different periods:

Nevertheless the outstanding losses as intimated by the companies in respect of facultative business are classified according to the outstanding period as per the details given below:

9.6 Premiums, less reinsurance, written from business during the financial year 2014-15 in India are Rs, 76,927,547 thousand (Previous yea r Rs, 68,578,321 thousand) and outside India are Rs, 61,642,588 thousand (Previous year Rs, 63,547,840 thousand).

9.7 Claims settled and remaining unpaid for a period of more than six months as on 31-03-2015 Rs, NIL. (Previous Year Rs, NIL).

9.8 Value of contracts in relation to investments, for

9.12 The basis of amortization of debt securities is as stated in Significant Accounting Policy No. 7.13.

9.13 Provisions regarding unrealized gains / losses have been stated in the Significant Accounting Policies No. 7.7.

9.14 The Corporation does not hold any properties for investment purposes.

9.15 The Corporation has not provided for catastrophic reserves as IRDA has not issued any guidelines in this respect.

a) Purchases, where deliveries are pending Rs, NIL (Previous year Rs, 839,999 thousand).

b) Sales, where payments are overdue Rs, NIL (Previous year Rs, NIL).

9.9 The basis of apportionment of operating expenses to the Revenue Accounts has been stated in the Significant Accounting Policy No. 5.3.

9.10 The historical cost of investments valued on Fair Value basis is Rs, 70,440,575 thousand (Previous year Rs, 68,257,241 thousand).

10. The Corporation generally makes payments to its creditors within a period of 45 days as stipulated in Micro, Small and Medium Enterprises Act 2006. The Corporation is in the process of identifying Micro, Small a nd Medium Enterprises as defined in above referred act. Hence relevant disclosures are not made. The Corporation has neither received any claims for interest nor provided a ny interest payable to Micro, Small and Medium Enterprises as required by aforesaid act. i

11. Related party Disclosures as per Accounting Standard - 18 "Related Party Transaction" issued by ICAI:

a) Subsidiary Company:

- GIC Re South Africa Ltd.

b) Associate Company:

- India International Pte Limited, Singapore

- Agriculture Insurance Company of India Limited, India

- GIC Bhutan Re Ltd,Bhutan

c) Key Management Personnel:

- Shri A,K.Roy,CMD

. Suchita Gupta, Company Secretary

- Alice Vaidyan,CFO

There a re no related party transactions during the year with GIC Re South Africa Ltd and GIC Bhutan Re Ltd.

The same is disclosed a s per Note no. 9.12 of the Disclosures forming part of the financial statements.

In terms of Para 9 of AS-18, no disclosure has been made in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

12 Employees Benefits

The Corporation has classified the various benefits provided to employees as under:

1 Pension Superannuation Scheme

2 Defined Benefit Plan

(a) Leave Encashment

(b) Gratuity

(c) Provident Fund

3 Settlement Benefit

13. The Corporation has prepared Cash flow statement adopting the indirect method.

14. Tax liabilities in respect of foreign operation, if any, is accounted on actual basis.

15. Prior period items have not been separately disclosed, as the amount is not material.

16. The summary of the financial statements of the Corporation for the last five years is as per Annexure I.

17. The Accounting Ratios of the Corporation are stated in Annexure II.

18. a) The detail son account of revaluation included in the

19. As per the Ministry of Finance guidelines, Corporation has proposed dividend of Rs, 64, 99,332thousand (including dividend distribution tax), out of the current year profit.

20. During the year, the Corporation has made a provision of Rs, 365,702 thousand (Previous Year Rs, 470,346 thousand) towards unexpired risk reserve for life business as determined by Life Appointed Actuary, as per IRDA guidelines. (Excluding Re-taka ful business)

21. (a) Till the F. Y. 2013-14, depreciation on fixed assets was charged on written-down value method at the higher of the rates specified in the Income Tax Rules, 1962 and those specified in Schedule XIV to the Companies Act, 1956. In respect of leasehold properties and intangible assets amortization was made over the period of lease/use. From the F.Y. 2014 - 15, the Corporation has changed the method of depreciation from written down value to straight line method. However, there is no material impact on the financial statements due to such change in deprecation method.

(b) Pursuant to the enactment of the Companies Act 2013, the corporation has applied the estimated useful lives as specified in schedule II. Accordingly the un-amortized carrying value is being depreciated / amortized over the revised / remaining useful lives. The written down value of fixed assets whose lives have expired as at April 01, 2014 have been charged to Profit and Loss Account.

22. The actuary has adopted chain ladder method for IBNR provision for non-life business. This method assumes that for immediately short period of six months, outcome is likely to broadly follow past trend or at least not likely to impact significantly.

23. The balance of amount of service tax is subject to reconciliation with service tax returns. The financial impact thereof is not material.

24. Figures relating to the previous year ha

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article