Auditor Report of The New India Assurance Company Ltd.

Mar 31, 2025

We have audited the accompanying Standalone Financial
statements of The New India Assurance Company Limited

(“the Company”), which comprise the Balance Sheet as at
March 31, 2025, the Revenue Accounts of Fire, Marine and
Miscellaneous Insurance Business (collectively known as
''Revenue Accounts''), Profit and Loss Account and the Receipts
and Payments Account for the year then ended, and notes
to the financial statements, including a summary of significant
accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial
statements”), in which are incorporated the returns for the
year ended on that date:

a) From 51 Regional offices (including 16 LCBO''s, 2 Legal
Hubs, 3 Auto Hubs & Gift City office), audited by the other
firms of Auditors appointed by the Comptroller and Auditor
General of India under section 139 of the Companies Act,
2013;

b) From 9 Foreign Branches (including 2 Foreign Run-off
offices) and 6 Foreign Agency offices audited by local
Auditors appointed by the Company; and

In our opinion and to the best of our information and according
to the explanations given to us, except for the effects of the
matter described in the Basis for Qualified Opinion section of
our report, the aforesaid Standalone financial statements give
the information required, in accordance with the Insurance
Act, 1938, as amended (the “Insurance Act”), the Insurance
Regulatory and Development Authority Act, 1999 (the “IRDAI
Act”), IRDAI (Actuarial, Finance and Investment Functions of
Insurers) Regulations 2024 (the “IRDAI Financial Statements
Regulations”), orders / directions / circulars issued by the
Insurance Regulatory and Development Authority of India (the
“IRDAI”) and the Companies Act, 2013 (“the act”), to the
extent applicable, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India, as applicable to Insurance companies:

a) in the case of the Balance Sheet, of the state of affairs of
the Company as at March 31, 2025;

b) in the case of Revenue Accounts, of the operating
Profit in so far as it relates to the Fire, Marine Insurance
business and of the operating Loss so far as it relates to
Miscellaneous business for year ended on that date;

c) in the case of the Profit and Loss Account, of the Profit for
the year ended on that date; and

d) in the case of the Receipts and Payments Account, of the
Receipts and Payments for the year ended on that date.

Basis for Qualified Opinion

Balances relating to various accounts that inter-alia includes,
inter office accounts, unadjusted banking transactions, dues
from / to Reinsurers, certain indirect tax related accounts
and certain other accounts are subject to confirmation and
reconciliation. Consequential adjustments and effect thereof
in this regard, if any, is yet to be dealt with. The process of
compilation of old balances is also at different stages in the
company. [Refer Note No.9, Schedule 16B]

The Overall impact of the above on the state of affairs of the
Company as at March 31, 2025, the Revenue Accounts, Profit
and Loss Account and the Receipts and Payments Account for
the year ended on that date, is presently not ascertainable and
cannot be commented upon.

We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) ofthe Companies
Act, 2013. Our responsibilities under those Standards are
further described in the Auditors'' Responsibilities for the Audit
of the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants
of India (''ICAI'') together with the ethical requirements that are
relevant to our audit of the standalone financial statements
under the provisions of the Act and the Rules made there
under, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the ICAI''s Code of
Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our qualified
opinion.

Emphasis of Matter

We invite attention to the following:

a) Note no. 5 (c) of Schedule 16B regarding non provisioning
for Tax Demands on account of favourable judgements
received by the Company that includes matters under
appeal at the ITAT Mumbai / Hon''ble Bombay High Court.
Same is disclosed as Contingent Liabilities amounting to
? 5,79,811 Lacs.

b) Note No. 9 (b) of Schedule 16B regarding provision of
? 22,395 lakhs maintained and write off amounting to ?
2,520 lakhs made in respect of co-insurance balances as
per Board approved policy and pending confirmation and

reconciliation of certain such balances.

c) Note No. 22 of Schedule 16B regarding strengthening of
Internal controls and Internal audit especially in the area
of data input and validation in software and unreconciled/
uncompiled Reinsurance / Coinsurance / other accounts/
balances and internal audit system of the Company.

d) Note No. 26 of Schedule 16B regarding provision towards
wage revision for ? 45,095 lakhs based on management
assessment pending finalisation of wage negotiations.

e) Note No. 28 of Schedule 16B regarding the compliance
of Rule 3(1) of The Companies (Accounts) Rules, 2014
towards audit trail and edit log and pending compliance
of Section 128 of the Companies Act, 2013 and rules
thereunder, as amended, regarding maintenance of the
books of account and other books and papers in an
electronic mode and backup thereof in respect of foreign
branches of Company which is not accessible in India at
all times and backup thereof is not maintained at servers
physically located in India.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the Standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matters	auditor''s Response
1.	Claim Provisioning Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyor''s report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyor''s immediate loss assessment reports, advocate advice pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information. A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	Principal audit Procedures Performed • The audit matters for verification of claims provisioning are handled at the Regional Offices of the Company. We have observed that Regional Auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyor''s claim estimate, advocate advice, co¬ insurer leader communication and the Company''s feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly. • For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2025, is as certified by the Company''s Appointed Actuary. We have relied upon the work carried out by the respective component auditors in relation to the audit of verification of claim provisions and on the work carried out by the appointed actuary with respect to provision of claims incurred but not reported and claims incurred but not enough reported.
2	Strengthening of Internal control System and Internal Audit required by the Company (Refer Note no. 22, Schedule 16B) On the basis of selective checks carried out during the course of our audit and according to the information and explanation given to us, internal control weaknesses of material nature have been identified as at March 31, 2025 with respect to:	Principal audit Procedures Performed • We have designed our audit procedures to assess the Company''s control risk. We had conducted control test to test the effectiveness of a control used by the Company to prevent or detect material misstatements. Based on the control test, control weaknesses were identified in areas of reconciliation of various receivable and/or payable balances, etc.

	a)	Confirmation and reconciliation of various balances	• We have considered the reports issued by the
		relating to co insurers, reinsurers, unadjusted Banking	professional consultant with respect to review of
		Transactions, inter office accounts and other control	operational effectiveness of internal controls for Risk
		accounts are pending and are at various stages;	Control matrix of the Company.
	b)	Strengthening internal controls required in other	• We have reviewed the Internal Audit System including
		areas of its operations by bringing more controls and	that relating to Foreign offices of the company. Same
		validation in system.	need to be reviewed and strengthened in the area of
	c)	The Internal Audit System including that relating to	coverage, timely completion of audit etc..
		Foreign offices need to be strengthened.	• Audit of health-related claims processed by TPAs are
	d)	Strengthening of process required relating to audit of health claims processed by TPA which is conducted by	required to be audited as per policy framed by the Company, however it has been unable to carry out
		the offices of the Company.	audit of adequate number of claims as per its policy.
			Hence these areas are highlighted in paragraphs of Basis for qualified opinion, Emphasis of matter and opinion on internal financial control with reference to standalone financial statements in the Independent Auditors'' Report.

Other Matters

a) We did not audit the financial statements and other
financial information of 51 Regional offices (including 16
LCBO''s, 2 Legal Hubs, 3 Auto Hub & Gift City office) and
9 Foreign Branches (including 2 Foreign Run-off offices)
and 6 Foreign Agency offices, included in the Standalone
financial statements of the Company whose financial
statements reflect total assets of ? 35,85,179 Lakhs as
at March 31, 2025 and total revenues of ? 42,28,616
Lakhs for the year ended on that date, as considered
in the Standalone financial statements. The financial
statements / information of these Branches/offices have
been audited by the other auditors whose reports have
been furnished to us, and our opinion in so far as it relates
to the amounts and disclosures included in respect of
these Branches/offices, is based solely on the report of
such other auditors.

b) The actuarial valuation of liabilities in respect of Claims
Incurred but Not Reported (''IBNR''), Incurred but Not
Enough Reported (''IBNER'') and Premium Deficiency
Reserve (''PDR''), is the responsibility of the Company''s
Appointed Actuary (the “Appointed Actuary”). The
actuarial valuation of these liabilities that are estimated
using statistical methods as at March 31, 2025 have been
certified by the Appointed Actuary and in his opinion, the
assumptions for such valuation are in accordance with the
guidelines and norms issued by IRDAI and the Institute
of Actuaries of India in concurrence with the Authority. We
have relied upon the Appointed Actuary''s certificate in this
regard for forming our opinion on the valuation of liabilities
for outstanding claims reserve and PDR, as contained
in the standalone financial statements of the Company.
[Refer Note No. 4 of Schedule 16B].

c) The standalone financial statements of the Company for
the year ended March 31, 2024 were audited by the joint
auditors, one of which is predecessor audit firm and have
issued their modified opinion dated May 22, 2024 on such
financial statements.

Our opinion is not modified in respect of these matters.

Information other than the financial statements and

Auditor''s report thereon

The Company''s Board of Directors is responsible for
the other information. The other information comprises
the information included in the Directors'' Report &
Management Discussion and Analysis and Business
Responsibility Report but does not include the Standalone
financial statements and our auditors'' report thereon.
The other information as above is expected to be made
available to us after the date of this auditors'' report.

Our opinion on the Standalone financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the Standalone financial
statements, or our knowledge obtained during the
course of our audit or otherwise appears to be materially
misstated.

When we read the other information, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged with
governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these Standalone financial statements
that give a true and fair view of the financial position,
financial performance and receipts and payments of the
Company, in accordance with the accounting principles
generally accepted in India, including the Accounting
Standards specified under section 133 of the Act read
with relevant rules issued thereunder, the requirements
of the Insurance Act, the IRDAI Financial Statements
Regulations and the orders/directions and circulars

issued by the IRDAI in this regard, to the extent applicable
and in the manner so required.

This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions ol
the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
to the preparation and presentation of the Standalone
financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or
error.

In preparing the Standalone financial statements,
management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing
the Company''s financial reporting process.

Auditors'' Responsibilities for the Audit of the Standalone
Financial Statements

Our objectives are to obtain reasonable assurance about
whether the Standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor''s report that includes
our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted
in accordance with Standard on Auditing will always detect
a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these Standalone financial
statements.

As part of an audit in accordance with Standard on
Auditing, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement
of the Standalone financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section

143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether
the company has adequate internal financial controls
system in place and the operating effectiveness of
such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by
management.

• Conclude on the appropriateness of management''s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company''s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditors'' report
to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our
auditors'' report. However, future events or conditions
may cause the Company to cease to continue as a
going concern.

• Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors''
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.

Report on other Legal and Regulatory Requirements

1. As required by the IRDAI Financial Statements
Regulations, we have issued a separate certificate
dated May 19, 2025 certifying the matters specified in

paragraphs 3 and 4 of Schedule II, Part III to the IRDAI

Financial Statements Regulations.

2. As required by IRDAI Financial Statement Regulations

and Section 143 (3) of the Act, we report that:

a) We have sought and except for the matters described
in the Basis for Qualified Opinion paragraph,
obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit.

b) Except for the possible effects of the matter
described in the Basis for Qualified Opinion
paragraph above read with Note No. 28 regarding
accessibility and back up of the books of accounts
and papers at servers physically located India on a
daily basis , in our opinion, proper books of account
have been maintained by the Company, so far as it
appears from our examination of those books and
proper returns from Regional / Foreign Offices, not
visited by us, have been received and these were
adequate for the purpose of our audit.

c) The reports of Auditors of Regional Offices, foreign
branches and foreign agency offices/ Run-off
office, audited under section143(8) of the Act by
the respective component auditors have been
forwarded to us and have been properly dealt with by
us in preparing our report in the manner considered
necessary by us.

d) The Balance Sheet, the Revenue Accounts, Profit
and Loss Account, and the Receipts and Payments
Account dealt with by this Report are in agreement
with the books of account and with the returns
received from offices not visited by us.

e) Except for the possible effects of the matter described
in the Basis for Qualified Opinion paragraph above,
in our opinion, the aforesaid Standalone financial
statements have been prepared in accordance with
the requirements of the Insurance Act, the Insurance
Regulatory and Development Act, 1999 and the
Companies Act, 2013 to the extent applicable and in
the manner so required.

f) Except for the possible effects of the matter
described in the Basis for Qualified Opinion
paragraph, in our opinion, the aforesaid Standalone
Financial Statements comply with the Accounting
Standards specified under Section 133 of the Act
read with relevant rules issued thereunder.

g) The qualification relating to the maintenance of
accounts and other matters connected therewith
are as stated in the Basis for Qualified Opinion
paragraph above.

h) As per notification no. G.S.R 463(E) dated June 5,
2015, the Government Companies are exempted
from the provisions of section 164(2) of the Act,
accordingly, we are not required to report whether
any of the directors of the Company is disqualified in
terms of provisions contained in the said section.

i) The accounting policies selected by the company are
appropriate and are in compliance with the applicable
Accounting Standards specified under Section 133
of the Act read with relevant rules issued thereunder
and with the Accounting Principles as prescribed
in the IRDAI Financial Statements Regulations
and orders or directions issued by the Insurance
Regulatory and Development Authority, except for
the possible effects of the matter described in the
Basis for Qualified Opinion paragraph above.

j) The actuarial valuation of liability in respect of
claims Incurred but Not Reported (IBNR) and
those Incurred but Not Enough Reported (IBNER)
as at March 31, 2025, have been duly certified by
the Company''s Appointed Actuary and relied upon
by us. The Appointed Actuary has also certified
that the assumptions considered by him for such
valuations are in accordance with guidelines and
norms prescribed by the Insurance Regulatory and
Development Authority of India and the Actuarial
Society of India in concurrence with the IRDAI.

k) As per the information and explanations provided to
us, the investments have been valued in accordance
with the provisions of the Insurance Act, IRDAI
Financial Statements Regulations and orders/
directions issued by IRDAI in this regard.

l) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure I”.

3. With respect to the other matters to be included in the
Auditors'' Report in accordance with the requirement of
section 197(16) of the Companies Act 2013, as amended,
we report that the provisions of section 197 of the Act are
not applicable to the company vide notification No. GSR
463(E) dated 5^th June 2015. Hence reporting u/s 197(16)
of the Act is not required.

4. With respect to the other matters to be included in
the Auditors'' Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as
amended, in our opinion and to the best of our information
and according to the explanations given to us:

i) The Company has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements - Refer Note 5 (c) of Schedule
16B and Note 1 of Schedule 16C to the Standalone
financial statements;

ii) The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long¬
term contracts including derivative contracts - The
liability for Insurance Contracts, is determined by
the Company''s Appointed Actuary and is covered
by the Appointed Actuary''s certificate, referred to in
Other Matter paragraph above, on which we have

placed reliance; and the Company did not have any
long-term contracts including derivative contracts for
which there were any material foreseeable losses;

iii) There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company;

iv) a) The Management has represented that, to

the best of its knowledge and belief, no funds
have been advanced or loaned or invested
(either from borrowed funds or share premium
or any other sources or kind of funds) by
the Company to or in any other person(s)
or entity(ies), including foreign entities
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that
the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries (Refer Note 24 (a) of Schedule
16B)

b) Management has represented that , to the
best of its knowledge and belief, no funds
have been received by the Company from
any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with
the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries (Refer
Note 24 (b) of Schedule 16B); and,

c) Based on audit procedures that have been
considered reasonable and appropriate in

the circumstances; nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii)
of Rule 11(e), as provided under (a) and (b)
above, contain any material misstatement.

v) The final dividend paid by the Company during the
year in respect of the same declared for the previous
year is in accordance with section 123 of the Act to
the extent it applies to payment of dividend.

As stated in Note no.30, Schedule 16B of the
financial statements, the Board of Directors of the
Company have proposed final dividend for the year
which is subject to the approval of the members at
the ensuing Annual General Meeting. Except for the
possible effects of the matter described in the Basis
for Qualified Opinion paragraph above, the dividend
proposed is in accordance with section 123 of the
Act to the extent it applies to declaration of dividend.

vi) Based on our examination which included test checks
and based on the reports received from the Regional
Auditors and the branch auditors of Foreign Branches/
offices, the company has used accounting softwares for
maintaining its books of account which have a feature of
recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions
recorded in the software. Further, during the course of our
audit, based on test checks , we did not come across any
instance of audit trail feature being tampered with and the
audit trail has been preserved by the Company as per the
statutory requirements for record retention except in case
of Foreign branches/offices where compliance of record
retention could not be verified due to lack of requisite
details available in India.

5. As required under section 143(5) of the Companies Act,
2013, based on our audit as aforesaid, we give in the
“Annexure II”, a report on the directions including Sub
directions issued by the Comptroller and Auditor General
of India (''C&AG''), action taken thereon and its impact on
the accounts and financial statements of the Company.

For R. Devendra Kumar & Associates For Chokshi & Chokshi LLP

Chartered Accountants Chartered Accountants

FRN: 114207W FRN: 101872W/W100045

(Anand Golas) (Dharmista Shah)

Partner Partner

M. No.: 400322 M. No. 108845

UDIN: 25400322BMJUVD2288 UDIN:25108845BMFXRS8105

date: May 19, 2025
Place : Mumbai

---

Mar 31, 2024

We have audited the accompanying Standalone Financial statements of The New India Assurance Company Limited

(“the Company”), which comprise the Balance Sheet as at March 31, 2024, the Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ''Revenue Accounts''), Profit and Loss Account and the Receipts and Payments Account for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”), in which are incorporated the returns for the year ended on that date:

a) From 50 Regional offices (including 14 LCBO''s, 2 Legal Hubs, 3 Auto Hub & Gift City), audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013;

b) From 9 Foreign Branches (including 2 Foreign Run-off offices) and 6 Foreign Agency offices audited by local Auditors appointed by the Company; and

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid Standalone financial statements give the information required, in accordance with the Insurance Act, 1938, as amended (the “Insurance Act”), the Insurance Regulatory and Development Authority Act, 1999 (the “IRDAI Act”), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002, as amended (the “IRDAI Financial Statements Regulations”), orders / directions / circulars issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) and the Companies Act, 2013 (“the Act”), to the extent applicable, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to Insurance companies:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2024;

b) in the case of Revenue Accounts, of the Operating Profit in so far as it relates to the Fire, Marine Insurance

business and of the Operating Loss so far as it relates to Miscellaneous business for year ended on that date;

c) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and

d) in the case of the Receipts and Payments Account, of the Receipts and Payments for the year ended on that date.

Basis for Qualified Opinion

Balances due to/from Reinsurers are subject to confirmation, reconciliation and records relating to old balances are being compiled by the Company. Also balances of Inter office accounts, control accounts, certain direct and indirect tax related accounts, unadjusted banking transactions and certain other accounts are pending for reconciliation/confirmation and consequential adjustments and effect thereof if any, is unascertainable and cannot be commented upon. The consequential impact of the above on compliance of tax laws is also unascertainable. [Refer Note No.8, Schedule 16B]

Overall impact of the above and the consequential effects on the state of affairs of the Company as at March 31, 2024, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Account for the year ended on that date are not ascertainable and cannot be commented upon.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors'' Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of Matter

We invite attention to the following:

a) Note No. 4 of Schedule 16B regarding recognition and utilization of MAT credit amounting to ?184,14.74 lakhs during the year and cumulative amount so recognized and utilized amounting to ?432,17.18 lakhs. The matter being sub-judice at various levels and management assessment of decisions in various forums being in favour of the company.

b) Note No. 8 (b) of Schedule 16B regarding provision of ? 340,75.19 lakhs made in respect of co-insurance balances as per board approved policy and pending confirmation and reconciliation of certain such balances.

c) Note No. 19 of Schedule 16B regarding computation of Reserve for unexpired risk based on actual treaty period for underlying policies during the year where the previous period figures are not comparable.

d) Note No. 21 of Schedule 16B regarding pending identification of MSME vendors and disclosure in respect of amount payable to such Micro and Small Enterprises as at March 31, 2024.

e) Note No. 23 of Schedule 16B regarding strengthening of Internal controls and Internal audit especially in the area of data input and validation in software and unreconciled/ uncompiled Reinsurance / Coinsurance / other accounts/

balances and internal audit system of the company.

f) Note No. 27 of Schedule 16B regarding provision towards wage revision for ?252,87.67 Lakhs based on management assessment.

g) Note No. 30 of Schedule 16B, regarding the compliance of Rule 3(1) of The Companies (Accounts) Rules, 2014 towards audit trail and edit log and pending compliance of Section 128 of the Companies Act 2013 and rules thereunder as amended regarding maintenance of the books of account and other books and papers in an electronic mode and backup thereof in respect of foreign branches which is not accessible in India at all times and backup thereof is not maintained at servers physically located in India.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matters	Auditor''s Response
1.	Claim Provisioning Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyor''s report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyor''s immediate loss assessment reports, advocate advice pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information. A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	Principal Audit Procedures performed • The audit matters for verification of claims provisioning are handled at the Regional Offices of the Company. We have observed that Regional Auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyor''s claim estimate, advocate advice, coinsurer leader communication and the Company''s feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly. • For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2024, is as certified by the Company''s Appointed Actuary. We have relied upon the work carried out by the respective component auditors in relation to the audit of verification of claim provisions and on the work carried out by the appointed actuary with respect to provision of claims incurred but not reported and claims incurred but not enough reported.

2.	Strengthening of Internal control System and Internal Audit required by the Company On the basis of selective checks carried out during the course of our audit and according to the information and explanation given to us, internal control weaknesses of material nature have been identified as at March 31, 2023 with respect to: a) Confirmation and reconciliation of various balances relating to co insurers, reinsurers, inter office accounts and other control accounts are pending and are at various stages; b) Strengthening of process required relating to audit of health claims processed by TPA which is conducted by the offices of the Company.	Principal Audit Procedures • We have designed our audit procedures to assess the Company''s control risk. We had conducted control test to test the effectiveness of a control used by the Company to prevent or detect material misstatements. Based on the control test, control weaknesses were identified in areas of reconciliation of various receivable and/or payable balances, etc. • We have considered the reports issued by the professional consultant with respect to review of operational effectiveness of internal controls for Risk Control matrix of the Company. • Audit of health-related claims processed by TPAs are required to be audited as per policy framed by the Company, however it has been unable to carry out audit of adequate number of claims as per its policy. Hence these areas are highlighted in paragraphs of Basis for qualified opinion, Emphasis of matter and opinion on internal financial control with reference to standalone financial statements in the Independent Auditors'' Report.
3	Evaluation of uncertain tax positions The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. The Company has disputes pending at various levels of tax authorities over the past several years. (Refer Note 1 of Schedule 16C to the Standalone financial statements).	Principal Audit Procedures Performed • We have evaluated the appropriateness of the design and tested the operating effectiveness of the management''s controls over the tax litigation matters; • Obtained from the management and perused details of completed tax assessments and demands for the year ended March 31, 2024; • Reviewed the management''s underlying assumptions in estimating the tax provision, the possible outcome of the disputes, legal precedence and other rulings in evaluating management''s position on these uncertain tax positions. • Relied upon the management judgements, industry level deliberations and estimates for possible outflow and opinion of internal experts/ External Tax Advisors/ lawyers of the Company in relation to such disputed tax positions.

Other Matters

a) We did not audit the financial statements and other financial information of 50 Regional offices (including 14 LCBO''s, 2 Legal Hubs, 3 Auto Hub & Gift City) and 9 Foreign Branches (including 2 Foreign Run-off offices) and 6 Foreign Agency offices, included in the Standalone financial statements of the Company whose financial statements reflect total assets of ? 11,27,400.79 Lakhs as at March 31, 2024 and total revenues of ? 40,69,600.50 Lakhs for the year ended on that date, as considered in the Standalone financial statements. The financial statements / information of these Branches/offices have been audited by the other auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these Branches/offices, is based solely on the report of such other auditors.

b) The actuarial valuation of liabilities in respect of Claims Incurred but Not Reported (''IBNR''), Incurred but Not Enough Reported (''IBNER'') and Premium Deficiency Reserve (''PDR''), is the responsibility of the Company''s Appointed Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities that are estimated using statistical methods as at March 31,2024 have been certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuary''s certificate in this regard for forming our opinion on the valuation of liabilities for outstanding claims reserve and PDR, as contained in the standalone financial statements of the Company. [Refer Note No. 28 of Schedule 16B].

c) The standalone financial statements of the Company for the year ended March 31, 2023 were audited by the joint

auditors, one of which is predecessor audit firm and have issued their modified opinion dated May 29, 2023 on such financial statements.

Our opinion is not modified in respect of these matters.

Information other than the financial statements and

Auditor''s report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Directors'' Report & Management Discussion and Analysis and Business Responsibility Report but does not include the Standalone financial statements and our auditors'' report thereon. The other information as above is expected to be made available to us after the date of this auditors'' report.

Our opinion on the Standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company, in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with relevant rules issued thereunder, the requirements of the Insurance Act, the IRDAI Financial Statements Regulations and the orders/directions and circulars issued by the IRDAI in this regard, to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are

free from material misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditors'' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.

As part of an audit in accordance with Standard on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the IRDAI Financial Statements

Regulations, we have issued a separate certificate

dated May 22, 2024 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDAI Financial Statements Regulations.

2. As required by IRDAI Financial Statement Regulations and Section 143 (3) of the Act, we report that:

a) We have sought and except for the matters described

in the Basis for Qualified Opinion paragraph,

obtained all the information and explanations

which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above read with Note No.30 regarding maintenance of audit trail, edit logs and accessibility

and back up of the books of accounts and papers at servers physically located India on a daily basis , in our opinion, proper books of account have been maintained by the Company, so far as it appears from our examination of those books and proper returns from Regional Offices, not visited by us, have been received and these were adequate for the purpose of our audit.

c) The reports of Auditors of Regional Offices, foreign branches and foreign agency offices/ Run-off office, audited under section143(8) of the Act by the respective component auditors have been forwarded to us and have been properly dealt with by us in preparing our report in the manner considered necessary by us.

d) The Balance Sheet, the Revenue Accounts, Profit and Loss Account, and the Receipts and Payments Account dealt with by this Report are in agreement with the books of account and with the returns received from offices not visited by us.

e) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid Standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, the Insurance Regulatory and Development Act, 1999 and the Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder.

g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

h) As per notification no. G.S.R 463(E) dated June 5, 2015, the Government Companies are exempted from the provisions of section 164(2) of the Act, accordingly, we are not required to report whether any of the directors of the Company is disqualified in terms of provisions contained in the said section.

i) The accounting policies selected by the company are appropriate and are in compliance with the applicable Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder and with the Accounting Principles as prescribed in the IRDAI Financial Statements Regulations and orders or directions issued by the Insurance Regulatory and Development Authority, except for

the possible effects of the matter described in the Basis for Qualified Opinion paragraph above.

j) The actuarial valuation of liability in respect of claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2024, have been duly certified by the Company''s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India and the Actuarial Society of India in concurrence with the IRDAI.

k) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, IRDAI Financial Statements Regulations and orders/ directions issued by IRDAI in this regard.

l) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure I”.

3. With respect to the other matters to be included in the Auditors'' Report in accordance with the requirement of section 197(16) of the Companies Act 2013, as amended, we report that the provisions of section 197 of the Act are not applicable to the company vide notification No. GSR 463(E) dated 5th June 2015. Hence reporting u/s 197(16) of the Act is not required.

4. With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 4 (c) of Schedule 16B and Note 1 of Schedule 16C to the Standalone financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts - The liability for Insurance Contracts, is determined by the Company''s Appointed Actuary and is covered by the Appointed Actuary''s certificate, referred to in Other Matter paragraph above, on which we have placed reliance; and the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii) There were no amounts which were required to be

transferred to the Investor Education and Protection Fund by the Company;

iv) a) The Management has represented that, to the

best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 25 (a) of Schedule 16B)

b) The Management has represented that , to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 25 (b) of Schedule 16B); and

c) Based on audit procedures that have been considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note no.33, Schedule 16B of the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the dividend proposed is in accordance with section 123 of the Act to the extent it applies to declaration of dividend

vi) Based on our examination which included test checks and based on the reports received from the Regional Auditors and the branch auditors of Foreign Branches except as stated in Note No 30 of Schedule 16B regarding 1 office and certain processes where such compliance was pending,

the company has used accounting softwares for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.

As proviso to Rule 3(1) of Companies (Accounts) Rules 2014 is applicable from April 01, 2023 reporting under Rule 11(g) of the Companies (Audit & Auditors) Rules, 2014 on preservation of audit trail

as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

5. As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we give in the “Annexure II”, a report on the directions including additional directions issued by the Comptroller and Auditor General of India (''C&AG''), action taken thereon and its impact on the accounts and financial statements of the Company.

For R. Devendra Kumar & Associates For O P Bagla & Co LLP

Chartered ^Accountants Chartered Accountants

^{FRN: 114207W} FRN: 000018N/N500091

^{(Anand Golas)} (Ninad Mulay)

Partner Partner

Memebership No. 400322 Memebership No. 161822

UDIN: 24400322BKEBBF3572 UDIN: 24161822BKGFPX8745

May 22, 2024 Mumbai

---

Mar 31, 2023

The New India Assurance Company Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Standalone Financial statements of The New India Assurance Company Limited

(“the Company”), which comprise the Balance Sheet as at March 31, 2023, the Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ''Revenue Accounts''), Profit and Loss Account and the Receipts and Payments Account for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”), in which are incorporated the returns for the year ended on that date:

a) From 43 Regional offices (including 8 LCBO''s, 2 Legal Hubs, 1Auto Hub & Gift City) (in which are incorporated returns of 473 Divisional offices), audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013;

b) From 7 Foreign Branches (including 2 Foreign Run-off offices) and 7 Foreign Agency offices audited by local Auditors appointed by the Company; and

c) From 2 Foreign Branches and 1 Foreign Run off office which are unaudited, prepared and furnished to us by the Management.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid Standalone financial statements give the information required, in accordance with the Insurance Act, 1938, as amended (the “Insurance Act”), the Insurance Regulatory and Development Authority Act, 1999 (the “IRDAI Act”), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002, as amended (the “IRDAI Financial Statements Regulations”), orders / directions / circulars issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) and the Companies Act, 2013 (“the Act”), to the extent applicable, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to Insurance companies:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2023;

b) in the case of Revenue Accounts, of the Operating Profit in so far as it relates to the Fire, Marine and Miscellaneous business for year ended on that date;

c) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

d) in the case of the Receipts and Payments Account, of the Receipts and Payments for the year ended on that date.

Basis for Qualified Opinion

a) Balances due to/from persons or bodies carrying on insurance business including Reinsurers are subject to confirmation, reconciliation and records relating to old balances are being compiled by the Company. [Refer Note 10(a) of Schedule 16B]

b) Impact of overall reconciliation in respect of balances pertaining to Co-insurance business is to be dealt with in accounts. [Refer Note 10(d) of Schedule 16B]

c) Balances of Inter office accounts, control accounts, various direct and indirect tax related accounts and certain other accounts at certain offices are pending for reconciliation/confirmation and consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. [Refer Note 10 (e, f, g, h and j) and 22(a) of Schedule 16B]

d) The company has recognized MAT credit relating to earlier years to the extent of availment amounting to ? 248,02.43 Lakhs, realization of which is dependent on its being finally successful in respect of matters pending at various judicial levels. [Refer Note 5(b) Schedule 16 B]

e) The impact on account of reconciliation relating to various accounts and balance under confirmation with respect to compliance of tax laws which may arise out of such reconciliation, if any, is not ascertainable and cannot be commented upon. [Refer Note 10(i) of Schedule 16B] Overall impact of the above para (a) to (e) above and the consequential effects on the state of affairs of the Company as at March 31, 2023, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Account for the year ended on that date are not ascertainable and cannot be commented upon.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors'' Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of

the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of Matter

We invite attention to the following:

a) Note No.4 of Schedule 16B regarding accounting of arrears of wage and corresponding incremental liabilities relating to Post-Employment benefits on account of wage revision amounting to ? 3445,13.93 Lakhs for the period ended March 31, 2023 under “Expenses other than those related to insurance business” through Profit & Loss Account instead of “Employees remuneration” under “Operating Expenses related to insurance business” in the respective

Revenue accounts, as permitted by IRDAI.

b) Note No. 3 of Schedule 16B regarding Un-amortized Pension Liability amounting to ? 410,14.00 Lakhs as permitted by IRDAI Circular.

c) Note No. 26 of Schedule 16B regarding strengthening of Internal controls and Internal audit specially in area of data input and validation in software and Reinsurance accounts.

d) Note No. 24 of Schedule 16B specifying that the management is currently in process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of micro and small enterprises as defined under Micro, Small and Medium Enterprise Development Act, 2006 and disclosure in respect of amount payable to such Micro and Small Enterprises as at March 31,2023 has not been made in the Standalone financial statements.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matters	Auditor''s Response
1.	Claim Provisioning Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyor''s report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyor''s immediate loss assessment reports, advocate advice pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information. A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	Principal Audit Procedures performed • The audit matters for verification of claims provisioning are handled at the regional and divisional offices of the Company. The component auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyor''s claim estimate, advocate advice, co-insurer leader communication and the Company''s feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly. • For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2023, is as certified by the Company''s Appointed Actuary and we had relied upon on the appointed actuary''s certificate in this regard with respect to the claim amounts and the related liability. We have relied upon the work carried out by the respective component auditors in relation to the audit of verification of claim provisions and on the work carried out by the appointed actuary with respect to provision of claims incurred but not reported and claims incurred but not enough reported.

Other Matters

a) We did not audit the financial statements and other financial information of 43 Regional offices (including 8 LCBO''s, 2 Legal Hubs, 1Auto Hub & Gift City), 473 Divisional offices, 7 Foreign Branches (including 2 Foreign Run-off offices) and 7 Foreign Agency offices, included in the Standalone financial statements of the Company whose financial statements reflect total assets of ? 32,54,907.10 Lakhs as at March 31, 2023 and total revenues of ? 37,53,803.21 Lakhs for the year ended on that date, as considered in the Standalone financial statements. The financial statements / information of these Branches/offices have been audited by the other auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and

disclosures included in respect of these Branches/offices, is based solely on the report of such other auditors.

b) We have relied on the financial information of 2 Foreign Branches and 1 Foreign Run off office included in the standalone financial statements of the Company whose financial information reflect total assets of ? 42353.64 lakhs as at March 31, 2023 and total revenues of ? 6,368.84 lakhs for the year ended on that date, which have been included based on unaudited financial information. Our opinion in respect thereof is solely based on the management certified information.

c) The actuarial valuation of liabilities in respect of Claims Incurred but Not Reported (''IBNR''), Incurred but Not Enough Reported (''IBNER'') and Premium Deficiency Reserve (''PDR''), is the responsibility of the Company''s

2.	Strengthening of Internal control System and Internal Audit required by the Company - On the basis of selective checks carried out during the course of our audit and according to the information and explanation given to us, internal control weaknesses of material nature have been identified as at March 31, 2023 with respect to: a) Confirmation and reconciliation of various balances relating to co insurers, reinsurers, inter office accounts and other control accounts are pending and are at various stages; b) Strengthening of process required relating to audit of health claims processed by TPA which is conducted by the offices of the Company.	Principal Audit Procedures • We have designed our audit procedures to assess the Company''s control risk. We had conducted control test to test the effectiveness of a control used by the Company to prevent or detect material misstatements. Based on the control test, control weaknesses were identified in areas of reconciliation of various receivable and/or payable balances, etc. • We have considered the reports issued by the professional consultant with respect to review of operational effectiveness of internal controls for Risk Control matrix of the Company. • Audit of health-related claims processed by TPAs are required to be audited as per policy framed by the Company, however it has been unable to carry out audit of adequate number of claims as per its policy. Hence these areas are highlighted in paragraph of opinion, emphasis of matter and opinion on internal control with reference to standalone financial statements in the standalone Independent Auditors'' Report.
3	Evaluation of uncertain tax positions The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. The Company has disputes pending at various levels of tax authorities over the past several years. (Refer Note 1 of Schedule 16C to the Standalone financial statements).	Principal Audit Procedures Performed • We have evaluated the appropriateness of the design and tested the operating effectiveness of the management''s controls over the tax litigation matters; • Obtained from the management and perused details of completed tax assessments and demands for the year ended March 31, 2023; • Reviewed the management''s underlying assumptions in estimating the tax provision, the possible outcome of the disputes, legal precedence and other rulings in evaluating management''s position on these uncertain tax positions. • Relied upon the management judgements, industry level deliberations and estimates for possible outflow and opinion of internal experts/ External Tax Advisors/ lawyers of the Company in relation to such disputed tax positions.

Appointed Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities that are estimated using statistical methods as at March 31,2023 have been certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuary''s certificate in this regard for forming our opinion on the valuation of liabilities for outstanding claims reserve and PDR, as contained in the standalone financial statements of the Company.

d) The standalone financial statements of the Company for the year ended March 31, 2022 were audited by the joint auditors, one of which is predecessor audit firm and have issued their modified opinion dated May 23,2022 on such financial statements.

Our opinion is not modified in respect of these matters.

Information other than the financial statements and

Auditor''s report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Directors'' Report & Management Discussion and Analysis and Business Responsibility Report but does not include the Standalone financial statements and our auditors'' report thereon. The other information as above is expected to be made available to us after the date of this auditors'' report.

Our opinion on the Standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company, in accordance with the accounting principles

generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with relevant rules issued thereunder, the requirements of the Insurance Act, the IRDAI Financial Statements Regulations and the orders/directions and circulars issued by the IRDAI in this regard, to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditors'' Responsibilities for the Audit of the Standalone

Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.

As part of an audit in accordance with Standard on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement

of the Standalone financial statements, whether due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the IRDAI Financial Statements

Regulations, we have issued a separate certificate

dated May 29, 2023 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDAI Financial Statements Regulations.

2. As required by IRDAI Financial Statement Regulations and Section 143 (3) of the Act, we report that:

a) We have sought and except for the matters described

in the Basis for Qualified Opinion paragraph,

obtained all the information and explanations

which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account have been maintained by the Company, so far as it appears from our examination of those books and proper returns both audited and unaudited from Regional Offices, Divisional Offices, branches and other offices, not visited by us, have been received and these were adequate for the purpose of our audit.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices/ Run-off office, audited under section143(8) of the Act by the respective component auditors have been forwarded to us and have been properly dealt with by us in preparing our report in the manner considered necessary by us.

d) The Balance Sheet, the Revenue Accounts, Profit and Loss Account, and the Receipts and Payments Account dealt with by this Report are in agreement with the books of account and with the returns received from offices not visited by us.

e) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid Standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, the Insurance Regulatory and Development Act, 1999 and the

Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder.

g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

h) As per notification no. G.S.R 463(E) dated June 5, 2015, the Government Companies are exempted from the provisions of section 164(2) of the Act, accordingly, we are not required to report whether any of the directors of the Company is disqualified in terms of provisions contained in the said section.

i) The accounting policies selected by the company are appropriate and are in compliance with the applicable Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder and with the Accounting Principles as prescribed in the IRDAI Financial Statements Regulations and orders or directions issued by the Insurance Regulatory and Development Authority, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above.

j) The actuarial valuation of liability in respect of claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2023, have been duly certified by the Company''s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India and the Actuarial Society of India in concurrence with the IRDAI.

k) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, IRDAI Financial Statements Regulations and orders/ directions issued by IRDAI in this regard.

l) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure I”.

3. With respect to the other matters to be included in the

Auditors'' Report in accordance with the requirement of

section 197(16) of the Companies Act 2013, as amended,

we report that the provisions of section 197 of the Act are not applicable to the company vide notification No. GSR 463(E) dated 5th June 2015. Hence reporting u/s 197(16) of the Act is not required.

4. With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 5(c ) of Schedule 16B and Note 1 of Schedule 16C to the Standalone financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts - The liability for Insurance Contracts, is determined by the Company''s Appointed Actuary and is covered by the Appointed Actuary''s certificate, referred to in Other Matter paragraph above, on which we have placed reliance; and the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;

iv) a) The Management has represented that, to the

best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 28(a) of Schedule 16B)

b) The Management has represented that , to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 28(b) of Schedule 16B); and

c) Based on audit procedures that have been considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note no. 33 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing

Annual General Meeting. Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the dividend proposed is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.

5. As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we give in the “Annexure II”, a report on the directions including additional directions issued by the Comptroller and Auditor General of India (''C&AG''), action taken thereon and its impact on the accounts and financial statements of the Company.

---

Mar 31, 2022

Report on the Audit of the Standalone Financial Statements

I. Qualified Opinion

We have audited the Standalone financial statements of The New India Assurance Company Limited (“the Company”), which comprise the Balance sheet as at March 31, 2022, the Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ''Revenue Accounts''), Profit and Loss Account and the Receipts and Payments Accounts for the year then ended, and notes to the Standalone financial statements, including a summary of significant accounting policies and other explanatory information, in which are incorporated returns for the year ended on that date:

(a) From Forty four Regional offices (including 7 LCBO''s), Four hundred and seventy three Divisional offices audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act,2013;

(b) From Nine Foreign Branches and Seven Foreign Agency offices audited by local auditors appointed by the Company; and

(c) From One Foreign Run off offices and One Foreign representative office which are unaudited, prepared and furnished to us by the management.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid Standalone financial statements give the information required in accordance with the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015 (''the Insurance Act''), the Insurance Regulatory and Development Authority Act, 1999 (''the IRDAI Act''), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002 (''the IRDAI Financial Statements Regulations''), orders/ directions issued by the Insurance Regulatory and Development Authority of India (''the IRDAI''), the Companies Act (''the Act'')including the accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 (''the Accounting

Standards''), to the extent applicable in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Accounts for the year ended on that date.

II. Basis for Qualified Opinion

(a) Balances due to/from persons or bodies carrying on Insurance Business including reinsurers are subject to confirmations, reconciliation and records relating to old balances are being compiled by the Company. (Refer Note 9(a) of Schedule 16B);

(b) Balances of Inter office accounts, control accounts, certain loans and other accounts at certain offices are pending for reconciliation/confirmation and consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. (Refer Note 9(c) of Schedule 16B).

(c) The impact on account of reconciliation relating to various accounts and balances under confirmation with respect to compliance of tax laws which may arise out of such reconciliation (Refer Note 9(d) of Schedule 16B).

Overall impact of the above para (a) to (c) above and the consequential effects on the state of affairs of the Company as at March 31, 2022, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Accounts for the year ended on that date are not ascertainable and cannot be commented upon.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our qualified opinion.

III. Emphasis of Matter

Without qualifying our report in respect of the following,

we draw attention to:

i. Note No. 3 of Schedule 16B regarding Pension Liability as per IRDAI Circular.

ii. Note No. 9(b) of Schedule 16B regarding the impact of reconciliations and records relating to old balances pertaining to Co-insurance business of the Company.

iii. Note No. 22 of Schedule 16B specifying that the management is currently in process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of medium and small enterprise as defined under Micro, Small and Medium Enterprise Development Act, 2006 and disclosure in respect of amount payable to such Micro, Small and Medium Enterprise as at March 31,2022 has not been made in the Standalone financial statement.

iv. Note No. 26 of Schedule 16B regarding strengthening of Internal control specially in area of data input

and validation in softwares relating to Reinsurance accounts.

v. Note No 29 of Schedule 16B regarding the

management''s assessment of the financial impact of COVID - 19 pandemic situations on the Standalone financial statements, the assessment thereof by the management of the Company based on its internal, external and macro factors, involving certain estimation uncertainties.

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

IV. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matters	Auditor''s Response
1.	Claim Provisioning - Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyor''s report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyor''s immediate loss assessment reports, advocate advice pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information. A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	Principal Audit Procedures We carried out the following audit procedures: The audit matters for verification of claims provisioning is handled at the regional and divisional offices of the Company. The component auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyor''s claim estimate, advocate advice, co-insurer leader communication and the Company''s feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly. For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2022, is as certified by the Company''s Appointed Actuary and we had relied upon on the appointed actuary''s certificate in this regard with respect to the claim amounts and the related liability.

2.	Strengthening of Internal control System and Internal	Principal Audit Procedures
	Audit required by the Company -	We carried out the following audit procedures:
	On the basis of selective checks carried out during the	We had designed our audit procedures to access the
	course of our audit and according to the information and	Company''s control risk. We had conducted control test to
	explanation given to us, internal control weaknesses of	test the effectiveness of a control used by the Company
	material nature have been identified as at March 31, 2022	to prevent or detect material misstatements. Based on
	with respect to:	the control test control weakness were identified in areas
	a) Confirmation and reconciliation of various balances	of reconciliation of various receivable and/or payable
	relating to co insurers, reinsurers, inter office accounts	balances, etc.
	and other control accounts are pending and are at	We have considered the reports issued by the professional
	various stages;	consultant with respect to review of operational effectiveness
	b) Strengthening of process required relating to audit of	of internal controls for Risk Control matrix of the Company.
	health claims processed by TPA which is conducted	Audit of health-related claims processed by TPAs are
	by the offices of the Company.	required to be audited as per policy framed by the Company, however it has been unable to carry out audit of adequate number of claims as per its policy. Hence these areas are highlighted in paragraph of opinion, emphasis of matter and opinion on internal control over financial reporting in the standalone audit report.

V. Information other than the standalone financial statements and Auditor''s report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Standalone financial statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of this auditor''s report.

Our opinion on the Standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the other information included in the above reports, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.

VI. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company, in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act, the requirements of the Insurance Act, the IRDAI Financial Statements Regulations and the orders /directions and circulars issued by the IRDAI in

this regard, to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

VII. Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably

be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.

As part of an audit in accordance with Standard on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the Standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ii. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

v. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

VIII. Other Matters

i. We did not audit the financial statements of Forty-Four Regional offices (including 7 LCBO''s), Four hundred and seventy-three Divisional offices, Nine Foreign Branches and Seven Foreign Agency offices, included in the Standalone financial statements of the Company whose financial statements reflect total assets of Rs 32,23,082.27 Lakhs as on March 31, 2022 and total revenues of Rs. 34,92,468.91 Lakhs for the year ended on that date, as considered in the Standalone financial statements. The financial statements / information of these offices have been audited by the other firm of auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these offices, is based solely on the report of such component auditors.

ii. We have relied on the financial statements of one Foreign Run off offices and one Foreign Representative Office included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs 2.54 Lakhs as on March 31, 2022 and total revenues of Rs. Nil for the year ended on that date, as considered in the Standalone financial statements which have been furnished to us by the management and our audit report in so far as it relates to the amounts included in respect of the said foreign branches is solely based on the financial statements furnished by the management which has not been subject to audit in their respective countries.

iii. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2022, is as certified by the Company''s Appointed Actuary and our opinion in so far as it relates to the amounts and disclosures related to such liability, is based solely on such report. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI. We have relied upon on the Appointed Actuary''s certificate in this regard for forming our opinion on the financial statements of the Company.

Our opinion is not modified in respect of this matter.

IX. Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act 2013 and Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of accounts have been maintained by the Company, so far as it appears from our examination of those books and proper returns both audited and unaudited from Regional Offices, Divisional Offices, branches and other offices, not visited by us, have been received.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices, audited under section143(8) of the Act by the component auditors have been sent to us and have been properly dealt with by us in preparing this report in the manner considered necessary by us.

d) The Balance Sheet, the Revenue Account, Profit and Loss Account, and the Receipt and Payment Account dealt with by this Report are in agreement with the books of account and with the returns received from offices not visited by us.

e) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid Standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and Development Act, 1999 (41 of 1999) and the Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

g) On the basis of the written representations received from the directors as on March 31, 2022, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022, from being appointed as a director in terms of Section 164 (2) of the Act.

h) The accounting policies adopted by the company are appropriate and in compliance with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and with the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above.

i) The actuarial valuation of liability in respect of claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2022, have been duly certified by the Company''s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI.

j) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, the regulations and orders/directions issued by IRDAI in this regard.

k) Further on the basis of our examination of books and records of the Company and according to the information and explanation given to us and to the best of our knowledge and belief, we certify that:

i) We have reviewed the management report attached with the Standalone Financial Statements and there are no apparent mistakes or material inconsistencies between the management report and the Standalone financial statements;

ii) Based on the management representation made by the management of the Company charged with compliance, nothing has come to our attention which causes us to believe that the company has not complied with the terms and conditions of registration as stipulated by IRDAI; and

iii) No part of the assets of the policyholders'' funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application and investments of the policyholders'' funds.

l) With respect to the other matters to be included in

the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 1 of Schedule 16C to the Standalone financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - The liability for Insurance Contracts, is determined by the Company''s Appointed Actuary and is covered by the Appointed Actuary''s certificate, referred to Other Matter paragraph above, on which we have placed reliance; and the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that

no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 28(a) of Schedule 16B)

(b) The Management has represented that no funds have been received by the Company from any person(s)

or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 28(b) of Schedule 16B); and (c) Based on audit procedures that have been considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The Board of Directors of the Company have

proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

m) With respect to the other matters to be included in the Auditors'' Report in accordance with the requirement of section 197(16) of the Companies Act 2013, as amended, we report that the provisions of section 197 of the Act are not applicable to the company vide notification No. GSSR 463(E) dated 5th June 2015. Hence reporting u/s 197(16) of the Act is not required.

n) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

o) As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we enclose herewith, as per “Annexure B”, the directions including additional directions issued by the Comptroller and Auditor General of India, action taken thereon and the financial impact on the accounts and standalone financial statements of the Company.

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Mar 31, 2021

The New India Assurance Company Limited

Report on the Audit of the Standalone Financial Statements

I. Qualified Opinion

We have audited the standalone financial statements of The New India Assurance Company Limited (“the Company”), which comprise the Balance sheet as at March 31, 2021, the Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ''Revenue Accounts''), Profit and Loss Account and the Receipts and Payments Accounts for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information, in which are incorporated returns for the year ended on that date:

(a) From Forty four Regional offices (including 7 LCBO''s), Four hundred and seventy three Divisional offices audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act,2013;

(b) From Nine Foreign Branches and Seven Foreign Agency offices audited by local auditors appointed by the Company; and

(c) From Two Foreign Run off offices and One Foreign representative office which are unaudited, prepared and furnished to us by the management.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements give the information required in accordance with the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015 (''the Insurance Act''), the Insurance Regulatory and Development Authority Act, 1999 (''the IRDAI Act''), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002 (''the IRDAI Financial Statements Regulations''), orders/ directions issued by the Insurance Regulatory and Development Authority of India (''the IRDAI''), the Companies Act (''the Act'')including the accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 (''the Accounting

Standards''), to the extent applicable in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Accounts for the year ended on that date.

II. Basis for Qualified Opinion

(a) Balances due to/from persons or bodies carrying on Insurance Business including reinsurers and the balances related to Co-insurance accounts are subject to confirmations, reconciliation and records relating to old balances are being compiled by the company. (Refer Note 9(a) and (b) of Schedule 16B);

(b) Balances of Inter office accounts, control accounts, certain loans and other accounts at certain offices are pending for reconciliation/confirmation and consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. (Refer Note 9(c) of Schedule 16B).

(c) The impact on account of reconciliation relating to various accounts and balances under confirmation with respect to compliance of tax laws which may arise out of such reconciliation (Refer Note 9(d) of Schedule 16B).

Overall impact of the above para (a) to (c) above and the consequential effects on the state of affairs of the Company as at March 31, 2021, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Accounts for the year ended on that date are not ascertainable and cannot be commented upon.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements

and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

III. Emphasis of Matter

Without qualifying our report in respect of the following, we draw attention to:

i. Note No.3 (a) and (b) of Schedule 16B regarding Un-amortized Gratuity and Pension Liability as per IRDAI Circular.

ii. Note No. 22 of Schedule 16B specifying that the management is currently in process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of medium and small enterprise as defined under Micro, Small and Medium Enterprise Development Act, 2006 and disclosure in respect of amount payable to such Micro, Small and Medium Enterprise as at March 31, 2021 has not been made in the standalone financial statement.

iii. Note No. 25 of Schedule 16B regarding Expenses of Management incurred under Government Health Segment exceeding the allowable limit as prescribed in IRDAI Regulations.

iv. Note No. 26 of Schedule 16B regarding strengthening of Internal control System and Internal Audit specially in area of data input and validation in softwares relating to Reinsurance accounts, PMFBY and other Government sponsored Health schemes requires strengthening.

v. Note No 28 of Schedule 16B regarding the management''s assessment of the financial impact due to restrictions and conditions related to COVID - 19 pandemic situation.

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

IV. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matters	Auditor''s Response
1.	Claim Provisioning - Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyor''s report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyor''s immediate loss assessment reports, advocate advices pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information. A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	Principal Audit Procedures We carried out the following audit procedures: The audit matters for verification of claims provisioning is handled at the regional and divisional offices of the Company. The component auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyor''s claim estimate, advocate advices, co-insurer leader communication and the company''s feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly. For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2021, is as certified by the Company''s Appointed Actuary and we had relied upon on the appointed actuary''s certificate in this regard with respect to the claim amounts and the related liability.

2.	Strengthening of Internal control System and Internal	Principal Audit Procedures
	Audit required by the Company -	We carried out the following audit procedures:
	On the basis of selective checks carried out during the	We had designed our audit procedures to access the
	course of our audit and according to the information and	Company''s control risk. We had conducted control test to
	explanation given to us, internal control weaknesses of	test the effectiveness of a control used by the Company
	material nature have been identified as at March 31, 2021 with respect to:	to prevent or detect material misstatements. Based on the control test control weakness were identified in areas of reconciliation of various receivable and/or payable
	a) Confirmation and reconciliation of various balances	balances, in area of data input and validation in various
	relating to co insurers, reinsurers, inter office accounts	software, manual processing of PMFBY claims, etc.
	and other control accounts are pending and are at	Internal Control system of a Company should be designed
	various stages;	to provide a substantial degree of assurance in achieving business objective, while complying with the policies and
	b) Manual processing of claims for PMFBY, system	laws, safeguarding the assets, maintaining efficiency and
	module of claims is not utilized for processing the	effectiveness in regular operations and reliability of the
	same;	standalone financial statements.
	c) The Company''s internal control systems especially in	The Company is advised to strengthen the Internal Audit
	area of data input and validation in various software	specially in area of data input and validation in software,
	and recording of intimated claims at the offices of the Company.	Reinsurance accounts, PMFBY and other Government sponsored Health schemes as the entire revenue accounting is dependent on systems of the Company. The
	d) Strengthening of process required relating to audit of	impact of pending reconciliation, if any on the standalone
	health claims processed by TPA which is conducted	financial statements is unascertainable.
	by the offices of Company.	Audit of health-related claims processed by TPAs are required to be audited as per policy framed by the Company, however it has been unable to carry out audit of adequate number of claims as per its policy. Hence these areas are highlighted in paragraph of opinion, emphasis of matter and opinion on internal control over financial reporting in the standalone audit report.

V. Information other than the standalone financial statements and Auditor''s report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of this auditor''s report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information included in the above reports, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.

VI. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company, in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act, the requirements of the Insurance Act, the IRDAI Financial Statements Regulations and the orders /directions and circulars issued by the IRDAI in this regard, to the extent applicable and in the manner so required.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements,

management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

VII. Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with Standard on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the Standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ii. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we

are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

v. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

VIII. Other Matters

i. We did not audit the financial statements of Forty Four Regional offices (including 7 LCBO''s), Four hundred and seventy three Divisional offices, Nine Foreign Branches and Seven Foreign Agency offices, included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs 15,81,006.96 Lakhs as on March 31, 2021 and total revenues of Rs. 30,63,656.60 Lakhs for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these offices have been audited by the other firm of auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these offices, is based solely on the report of such component auditors.

ii. We have relied on the financial statements of two Foreign Run off offices and one Foreign representative office included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs 15.41 Lakhs as on March 31, 2021 and total revenues of Rs. Nil for the year ended on that date, as considered in the standalone financial statements which have been furnished to us by the management and our audit report in so far as it relates to the amounts included in respect of the said foreign branches is solely based on the financial statements furnished by the management which has not been subject to audit in their respective countries.

iii. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2021, is as certified by the Company''s Appointed Actuary and our opinion in so far as it relates to the amounts and disclosures related to such liability, is based solely on such report. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI. We have relied upon on the Appointed Actuary''s certificate in this regard for forming our opinion on the financial statements of the Company.

iv. Due to the COVID-19 pandemic lockdown and other restrictions imposed by the Government and local administration, the audit processes were carried out based on the remote access to the extent available/ feasible and necessary records made available to us by the management through digital medium.

Our opinion is not modified in respect of this matter.

IX. Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act 2013 and Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of accounts have been

maintained by the Company, so far as it appears from our examination of those books and proper returns both audited and unaudited from Regional offices, Divisional Offices, branches and other offices, not visited by us, have been received.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices, audited under section143(8) of the Act by the component auditors have been sent to us and have been properly dealt with by us in preparing this report in the manner considered necessary by us.

d) The Balance Sheet, the Revenue Account, Profit and Loss Account, and the Receipt and Payment Account dealt with by this Report are in agreement with the books of account and with the returns received from offices not visited by us.

e) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and Development Act, 1999 (41 of 1999) and the Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

g) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.

h) The accounting policies adopted by the company are appropriate and in compliance with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and with the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors'' Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above.

i) The actuarial valuation of liability in respect of claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31, 2021, have been duly certified by the Company''s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified

that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI.

j) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, the regulations and orders/directions issued by IRDAI in this regard.

k) Further on the basis of our examination of books and records of the company and according to the information and explanation given to us and to the best of our knowledge and belief, we certify that:

i) i) We have reviewed the management report attached with the Standalone Financial Statements and there are no apparent mistakes or material inconsistencies between the management report and the standalone financial statements;

ii) Based on the management representation made by the management of the company charged with compliance, nothing has come to our attention which causes us to believe that the company has not complied with the terms and conditions of registration as stipulated by IRDAI; and

iii) No part of the assets of the policyholders'' funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application and investments of the policyholders'' funds.

l) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. i. The Company has disclosed the impact of

pending litigations on its financial position in its standalone financial statements - Refer Note 1 of Schedule 16C to the standalone financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - The liability for Insurance Contracts, is determined by the Company''s Appointed Actuary and is covered by the Appointed Actuary''s certificate, referred to Other Matter paragraph above, on which we have placed reliance; and the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

m) With respect to the other matters to be included in the Auditors'' Report in accordance with the requirement of section 197(16) of the Companies Act 2013, as amended, we report that the provisions of section 197 of the Act are not applicable to the company vide notification No. GSsR 463(E) dated 5th June 2015. Hence reporting u/s 197(16) of the Act is not required.

n) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

o) As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we enclose herewith, as per “Annexure B”, the directions including additional directions issued by the Comptroller and Auditor General of India, action taken thereon and the financial impact on the accounts and standalone financial statements of the Company.

For Mukund M. Chitale & Co For Kailash Chand Jain & Co.

Chartered Accountants Chartered Accountants

Firm Reg. No. 106655W Firm Reg. No. 112318W

Abhay. V. Kamat Saurabh Chouhan

Partner Partner

M. No. - 039585 M. No. - 167453

UDIN - 21039585AAAAFE9299 UDIN - 21167453AAAAJZ8083

Place : Mumbai Date : June 07, 2021.

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Mar 31, 2018

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of The New India Assurance Company Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2018, the annexed Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ‘Revenue Accounts’), Profit and Loss Account and the Receipt and Payments Account for the year then ended, and a summary of significant accounting policies and other explanatory information, in which are incorporated returns for the year ended on that date:

(a) From Forty three Regional offices (including 9 LCO’s ), Four hundred and Sixty Divisional offices audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act,2013; and

(b) From Nine Foreign Branches, Seven Foreign Agency offices audited by local auditors appointed by the company and unaudited returns of two Run off offices and one representative office.

Management’s Responsibility for the Standalone Financial Statements:

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013, The Insurance Act 1938, and for the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority(“the Act, Rules and Regulations”), with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of “the Act, Rules and Regulations” for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the “The Act, Rules and Regulations”, the accounting and auditing Standards and matters which are required to be included in the audit report under the provisions of the Act, Rules and Regulations made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act 2013. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

Balances due to/from persons or bodies carrying on Insurance Business including reinsurers are subject to confirmations and reconciliation, the ageing of these balances and records relating to old balances are not available in the records of the company. Balances of Inter office accounts, control accounts, few Bank accounts including those related to Pradhan Mantri Fasal Bima Yojna , certain loans and other accounts at certain offices are also pending for reconciliation/confirmation and consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. The impact of the above, on year end restatement of these balances recorded in foreign currency as required under Accounting Standard-11 issued under section 133 of the Companies Act 2013, could not be ascertained. (Refer Note 15 of Notes to accounts, in schedule 16B).

Overall impact of the above and the consequential effects on Revenue Accounts, Profit and Loss Account, assets and liabilities and Reserve and Surplus as on March 31, 2018 are not ascertainable and cannot be commented upon.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone financial statements dealt with by this report read together with schedules, significant accounting policies and disclosures, give the information required by the “Act, Rules and Regulations” in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India as applicable to Non-Life Insurance Companies:

(i) In the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2018;

(ii) In case of revenue accounts of the Profit in Fire, Marine & Miscellaneous Business for the year ended on that date;

(iii) In case of Profit and Loss Account of the Profit for the year ended on that date, and

(iv) In case of Receipt and Payments Account, of the receipts and payments for the year ended on that date.

Emphasis of Matter

We draw attention to the following Notes to Accounts:

a) Note No. 3 in Schedule 16 B, regarding recognition of Reserve for Unexpired risk by 1/365 method as per the approval of IRDAI in case of domestic business while the implementation of systems and procedures to compute the same in case of Foreign business in accordance with 1/365 method is pending and systems in case of domestic business are being strengthened.

b) Note No.10 regarding deferment of additional gratuity liability pursuant to the amendment in the Payment of Gratuity Act,1972 to the extent of Rs.27001.78 lakhs and deferment of expenditure relating to additional liability towards pension on account of pay revision to the extent of Rs.690.80 lakhs, as per the deferment permitted by the IRDAI

c) Note No. 19 regarding outstanding dues from agent amounting to Rs.2043.30 lakhs for more than 90 days for which the branch auditors have not been able to assess the repayment capacity of the agent while the management has taken steps for recovery of these dues.

d) The company’s internal controls system and Internal audit specially in area of data input and validation in soft-wares, Reinsurance accounts, PMFBY and other Government sponsored Health schemes requires strengthening. (Refer Note No. 20)

e) Rs. 2171.34 Lakhs has been withheld / deducted by Govt of Rajasthan under Bhamashah Scheme towards rejection of claims under the scheme and related matters, since in the opinion of the management the same will be recovered. (Refer Note No 24)

Our opinion is not modified in respect of these matters.

Other Matters

a) We did not audit the financial statements of Forty Three Regional offices (including 9 LCO’s ), Four hundred and sixty Divisional offices, Nine Foreign Branches, Seven Foreign Agency offices, Two Run off offices and one representative office,included in the financial statements of the Company whose financial statements / financial information reflect total assets of Rs.4334856.34 lakhs as at March 31, 2018 and total revenues of Rs.2679247.39 lakhs for the year ended on that date, as considered in the financial statements. The financial statements/information of these offices except in case of Run-off and representative offices which have remained unaudited, have been audited by the other firm of auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.

b) The actuarial valuation of liability in respect of claims Incurred But Not Reported(IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31,2018, is as certified by the Company’s Appointed Actuary and our opinion in so far as it relates to the amounts and disclosures related to such liability, is based solely on such report.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act 2013 and Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph and the matters related to vigilance department which are stated to be confidential ( Refer Note 23),obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.;

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of accounts have been maintained by the Company, so far as it appears from our examination of those books and proper returns both audited and unaudited from Regional offices, Divisional Offices, branches and other offices, not visited by us, have been received.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices, audited under section143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report in the manner considered necessary by us.

d) The Balance sheet, Revenue account, Profit and Loss account and the Receipts and Payments Account dealt with by the report are in agreement with the books of account and with the returns received from offices not visited by us.

e) In our opinion, the aforesaid standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and Development Act, 1999 (41 of 1999) and the Companies Act, 2013 to the extent applicable and in the manner so required;

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

g) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may not have an adverse effect on the functioning of the Company;

h) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

i) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164(2) of the Act.

j) The accounting policies adopted by the company are appropriate and in compliance with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and with the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority.

k) The actuarial valuation of liability in respect of claims Incurred But Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at 31st March 2018, have been duly certified by the Company’s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI.

l) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, the regulations and orders/ directions issued by IRDAI in this regard.

m) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Schedule 16 C to the standalone financial statements;

ii) The company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long term contracts. There are no outstanding derivative contracts at the Balance Sheet date.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

n) Further on the basis of our examination of books and records of the company and according to the information and explanation given to us and to the best of our knowledge and belief, we certify that:

i) We have reviewed the management report attached with the Financial Statements and there are no apparent mistakes or material inconsistencies between the management report and the standalone financial statements;

ii) Based on the management representation by officer of the company charged with compliance, nothing has come to our attention which causes us to believe that the company has not complied with the terms and conditions of registration as stipulated by IRDAI; and

iii) No part of the assets of the policyholders’ funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application and investments of the policyholders’ funds.

o) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we enclose herewith, as per “Annexure B”, the directions including sub-directions issued by the Comptroller & Auditor General of India, action taken thereon and the financial impact on the accounts and financial statements of the Company.

For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co

Chartered Accountants Chartered Accountants Chartered Accountants

Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W

D.K.Gupta M.K. Gupta Pradeep J Shetty

Partner Partner Partner

Membership No. 009032 Membership No. 073515 Membership No. 046940

Place: Mumbai

Date: May 11th 2018

---

Mar 31, 2017

INDE PE NDE NT AU DITORS’ RE PORT

To

The Members of

The New India Assurance Company Limited Report on the Standalone Financial Statements:

We have audited the accompanying standalone financial statements of The New India Assurance Company Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2017, the annexed Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as ‘Revenue Accounts’), Profit and Loss Account and the Receipt and Payments Account for the year then ended, and a summary of significant accounting policies and other explanatory information, in which are incorporated returns for the year ended on that date:

(a) From Forty Three Regional offices (including 9 LCO’s), Four Hundred and Fifty Seven Divisional offices audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013; and

(b) From Nine Foreign Branches, Seven Foreign Agency offices audited by local auditors appointed by the company and unaudited returns of three Run-off offices and One Representative office.

Management’s Responsibility for the Standalone Financial Statements:

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013, The Insurance Act 1938, and for the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority (“The Act, Rules and Regulations”), with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of “The Act, Rules and Regulations” for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the “The Act, Rules and Regulations”, the accounting and auditing Standards and matters which are required to be included in the audit report under the provisions of the Act, Rules and Regulations made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

Balances due to/from persons or bodies carrying on Insurance Business including reinsurers and balances of Inter Office accounts, control accounts, few Bank accounts, certain loans and other accounts at certain offices are pending for reconciliation/confirmation and consequential adjustments. (Refer Note 16 of Notes to accounts, in schedule 16B, effect of which, if any, is not ascertainable and cannot be commented upon.)

Overall impact of the above and the consequential effects on Revenue Accounts, Profit and Loss Account and Reserve and Surplus as on 31st March 2017 are not ascertainable.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone financial statements dealt with by this report read together with schedules, significant accounting policies and disclosures, give the information required by the “Act, Rules and Regulations” in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India as applicable to Non-Life Insurance Companies:

(i) In the case of the Balance Sheet, of the state of affairs of the company as at 31stMarch 2017;

(ii) In case of revenue accounts of the Loss in Fire and Miscellaneous Business and Profit in Marine Business for the year ended on that date;

(iii) In case of Profit and Loss Account of the Profit for the year ended on that date, and

(iv) In case of Receipt and Payments Account, of the receipts and payments for the year ended on that date;

Emphasis of Matter

We draw attention to the following Notes to Accounts:

a) Note No. 3(ii) in Schedule 16 B, regarding recognition of Reserve for Unexpired Risk by 1/365 method as per the approval of IRDAI in case of domestic business while the implementation of systems and procedures to compute the same in case of foreign business in accordance with 1/365 method is pending and systems in case of domestic business are being strengthened.

b) Note No. 7 in Schedule 16 B regarding pending compliance of Insurance Regulatory and Development Authority (IRDAI) Regulations in respect of segment disclosure of Public and Product liability of Foreign business and netting of provisions in case of Loans.

c) Note No. 11 in Schedule 16 B, regarding deferment of expenditure relating to additional liability towards pension and gratuity on account of pay revision to the extent of Rs,16749.00 lakhs and Rs,4349.00 lakhs respectively and pension liability of Rs,1036.20 lakhs towards extended pension scheme, pursuant to the deferment permitted by the IRDAI.

d) The Company’s internal control systems specially in area of data input and validation in software’s, including internal audit, requires strengthening

Our opinion is not modified in respect of these matters.

Other Matters

We did not audit the financial statements of Forty Three Regional offices (including 9 LCO’s), Four Hundred and Fifty Seven Divisional offices, Nine Foreign Branches, Seven Foreign Agency offices, Three Run-off offices and one representative office, included in the financial statements of the Company whose financial statements/ financial information reflect total assets of Rs,4272031.89 lakhs as at 31st March, 2017 and total revenues of Rs,2161088.56 lakhs for the year ended on that date, as considered in the financial statements. The financial statements/information of these offices except in case of Run-off and representative offices which have remained unaudited, have been audited by the other firms of auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act, 2013 and Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of accounts have been maintained by the Company, so far as it appears from our examination of those books and proper returns, both audited and unaudited from Regional offices, Divisional Offices, Branches and other offices, not visited by us, have been received.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices, audited under section143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report in the manner considered necessary by us.

d) The Balance Sheet, Revenue Account, Profit and Loss Account and the Receipts and Payments Account dealt with by the report are in agreement with the books of accounts and with the returns received from offices not visited by us.

e) In our opinion, the aforesaid Standalone Financial Statements have been prepared in accordance with the requirements of the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and Development Act, 1999 (41 of 1999) and the Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

g) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may not have an adverse effect on the functioning of the Company;

h) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

i) On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164(2) of the Act.

j) The accounting policies adopted by the company are appropriate and in compliance with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and with the Accounting Principles as prescribed in the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 and orders or directions issued by the Insurance Regulatory and Development Authority.

k) The actuarial valuation of liability in respect of Claims Incurred But Not Reported(IBNR) and those Incurred but Not Enough Reported (IBNER) as at 31st March 2017, have been duly certified by the Company’s Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) and the Actuarial Society of India in concurrence with the IRDAI.

l) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the investments have been valued in accordance with the provisions of the Insurance Act, the regulations and orders/directions issued by IRDAI in this regard.

m) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Schedule 16 C to the standalone financial statements;

ii) The company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long term contracts. There are no outstanding derivative contracts at the Balance Sheet date.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

n) Further on the basis of our examination of books and records of the company and according to the information and explanation given to us and to the best of our knowledge and belief, we certify that:

i) We have reviewed the management report attached with the Financial Statements and there are no apparent mistakes or material inconsistencies between the management report and the standalone financial statements;

ii) Based on the management representation by officer of the company charged with compliance, nothing has come to our attention which causes us to believe that the company has not complied with the terms and conditions of registration as stipulated by IRDAI; and

iii) No part of the assets of the policyholders’ funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application and investments of the policyholders’ funds.

o) The disclosure requirement as envisaged in Notification G.S.R 308(E) dated 30th March 2017 is not applicable to the Company - Refer Note No.22;

p) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we enclose herewith, as per “Annexure B ”, the directions including sub-directions issued by the Comptroller & Auditor General of India, action taken thereon and the financial impact on the accounts and financial statements of the Company

“ANNE X U RE A” RE FE RRE D TO IN THE INDE PE NDE NT AU DITOR’S RE PORT ON THE STANI FINANCIAL STATE ME NTS OF THE NE W INDIA ASSU RANCE CO. LTD. FOR THE FINANCIAL Y E AR 2 0''

Report on the Internal Financial Controls under Clause ( i) of Sub-section 3 of Section 1 4 3 of the Companies Act, 2 0 1 3

1. We have audited the internal financial controls over financial reporting of THE NE W INDIA ASSU RANCE CO. LTD. (“the Company”) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. These financial statements incorporated returns received:

a) From Forty Three Regional offices (including 9 LCO’s), Four Hundred and Fifty Seven Divisional offices audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under Section 139 of the Companies Act,2013; and

b) From Nine Foreign Branches, Seven Foreign Agency offices audited by local auditors appointed by the company and unaudited returns of Three Run-Off offices and One representative office.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaining internal financial controls based on “The Internal Control over Financial Reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India”. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company''s Internal Financial Controls Over Financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (The “Guidance Note”) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. Report of branch auditors relating to London Branch has not been received and as such was not available for our review and therefore the internal controls over financial reporting relating to the office have not been considered in this report and cannot be commented upon.

6. Except for the possible effect of non availability of report as stated in note No.5, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

7. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

8. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

9. According to the information and explanation given to us and based on our audit, the following internal control weaknesses of material nature have been identified as at March 31,2017:

a. Confirmation and reconciliation of various balances relating to co insurers, reinsurers, few bank accounts, inter office accounts and other control accounts are pending and are at various stages.

b. Inadequate controls are observed with regard to ageing of insurance receivables.

The Company’s internal control systems specially in area of data input and validation in various software’s and recording of intimated claims at the offices of the company including internal audit require strengthening.

Further to above, the management of the company has appointed external consultant to assess the internal financial control framework in the company. Though the interim report submitted by the consultants in case of certain processes does not identify any serious issues, the final report is still awaited. Review of design and testing of the risk control matrix at Regional level/ HO level, review and testing of entity level controls and final report is yet to be received.

10. A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s financial statement will not be prevented or detected on a timely basis.

11. In our opinion, except for the possible effects of the internal control weaknesses described above on the achievements of the objectives of the control criterion, the company has maintained, in all material respects, adequate internal financial control over financial reporting and such internal financial controls over financial reporting were operating effectively as of March 31,2017, based on “The Internal Control over Financial

Reporting criteria established by the Company considering the essential components of internal control stated in The Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by "The Institute of Chartered Accountants of India”.

12. We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2017 standalone financial statements of the Company, and these material weaknesses do not affect our opinion on the Standalone financial statements of the Company except to the extent of our qualification as contained in our separate report on the Standalone financial statements of the company.

Sr. No.	Directions under section 1 4 3 (5 ) o Companies Act 2 0 13	f Action taken and financial impact
1.	Whether the Company has clear title/lease deeds for freehold and leasehold respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available?	The Company has clear title/lease deeds for freehold and leasehold properties except as under: LAND: 1 . Leasehold land: [i] One leasehold land book value ''1.00 is under litigation and SLP is pending with Supreme Court. [ii] 2 leasehold lands book value of ''118.44 lakh where lease deed has expired. [iii] 1 leasehold land consisting of 123 tenements and 6 god owns, book value ''3.42 lakh and lease period 999 years, which is not in possession of the Company. [iv] 1 open plot not registered in the name of the company. 2 . Freehold Land: 4 properties book value Rs,124.97 lakh where conveyance deeds are not available. B U ILDINGS: 1. 74 properties, book value Rs,2066.95 lakh where title deeds are not presently available/ registration formalities are yet to be completed. 2. In case of certain title documents of properties, only photo copies are made available for our verification and as explained by the management originals for the same are available at ROs/DOs. 3. 29 properties book value Rs,163.61 lakh which are not registered in the name of the Company Further, cost as per title deeds is being reconciled with the asset register. Necessary reconciliation is under process.
2.	Whether there are any cases of waiver/write off of debts/loans/interest etc., if yes, the reasons there for and amount involved.	According to the records and information provided to us, during the year, an amount of Rs,12.60 lakhs towards principal and Rs,10.27 lakhs towards interest has been waived off in debentures (OCCD) as per one time settlement approved by the Board. The company has written off/down investment in equity/ venture funds to the extent of Rs,664.26 lakhs towards impairment and booked loss in Mutual Funds to the extent of Rs,317.52 Lakhs on account of redemption
3.	Whether proper records are maintained for inventories lying with third parties & assets received as gift/grant(s) from the Govt. or other authorities?	The Direction is not applicable.

1 . Number of titles of ownership in respect of CGS/ SGS/ Bonds/ Debentures etc. available in physical/ demat form and out of these number of cases which are not in agreement with the respective amounts shown in the company’s books of accounts may be verified and discrepancy found may be suitably reported.

The Central Government/State Government securities balances are tallied as per books of accounts. In case of bonds/debentures/equities/preference shares, there are 9 nos. of scrips of bonds/debentures having face value of Rs,66.33 lakhs, 2 scrips of preference shares having face value of Rs,0.26 lakhs, and 9 scripts of equity shares having book value of Rs,8.36 lakhs, which are in shortage as per the records of custodian vis a vis books of accounts of the Company. There are 104 no. of scrip in equity having market value of Rs,418.30 lakhs and one scrip in preference share having face value of Rs,0.04 lakhs which are in excess quantity as per custodian records vis a vis books of accounts of the company. The Company is in the process of taking adequate steps for reconciliation and adjustments wherever required.

The dividend received on such excess shares is shown as liability and taken to income after three years.

2. Whether Company has carried out reconciliation exercise for inter-company balances reflected in their financial statements with other PSU insurers and whether confirmation has been Obtained from other PSU insurers for balances due from them? ( for OICL, NIAC, NIC and U IIC)

The Company has initiated various levels of meetings with other PSU Companies for reconciliation and settlement of co-insurance balances. During the year, the company has settled the receivable balances of Rs,106596 lakhs and payable balances of Rs,110899 lakhs. As on March 31, 2017, there is a net Dr balance of Rs,35695 lakhs with Pradhan Mantri Fasal Bima Yojna (PMFBY) comprising Rs,131597 lakhs (Dr) and Rs,95902 lakhs (Cr); and net debit balance of Rs,14539 lakhs, with other than PMFBY comprising Rs,83121 lakhs (Dr) and Rs,68582 Lakhs (Cr.).

The balance appearing in the amount due to/ due from persons or bodies carrying on insurance business including reinsurance business are subject to confirmation/ reconciliation and consequential adjustments if any. In case of co-insurance balances, the reconciliation and settlement process to clear balances is in progress

3 . During recent de-monetiza tion drive of Government of India ( GOI) , insurance companies were Req uired to give a discount or credit in case payment was made through digital means. Financial Impact of above initiative may be reported.

In line with the initiative of the Government of India, the Company is allowing a digital discount of 10% for new policies procured in our Customer portal where no intermediaries are allowed, subject to a maximum discount of Rs,2000/-. The total digital discount allowed till 31st March 2017 is Rs,12,68,171. It is observed that discount is given more than Rs,2000 in 14 cases amounting to Rs,4280.

4 . In case the Company is taking part in Pradhan Mantri Fasal B ima Y oj ana ( PMFB Y ) it may stated whet method of accounting of premium and reported claims are as per conditions of the agreement and agreement/ schemes.

The Company is taking part in the Pradhan Mantri Fasal Bima Yojana. The Company has accounted for the farmers premium, as well as State/Central Government subsidy accordingly along with incidental expenses. During the year company has accounted for the Gross Direct Premium income of Rs,104641.70 lakhs.

In respect of PMFBY claims, as claims details are yet to be notified, the Company has considered the claims on estimated basis as per the actuarial valuation.

Method of accounting of premium and claims are as per the conditions of the agreement/schemes.

For R. Devendra Kumar & Associates For A. B afna & Co. For NB S & Co

Chartered Accountants Chartered Accountants Chartered Accountants

Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W

Neeraj Golas Mukesh Kumar Gupta Pradeep J Shetty

Partner Partner Partner

Membership No. 74392 Membership No. 073515 Membership No. 046940

Place: Mumbai

Date: 3rd May, 2017