Notes to Accounts of The New India Assurance Company Ltd.

Mar 31, 2025

24. Provisions, Contingent Liabilities and Contingent
Assets

Provisions involving substantial degree of estimation in
measurement are recognized when there is a present
obligation as a result of past events and it is probable
that there will be an outflow of resources and reliable
estimate can be made of the amount of obligation.
Contingent Liabilities are not recognized but are
disclosed in the notes. Contingent Assets are neither
recognized nor disclosed in the Standalone financial
statements.

25. Expenses of Management-Basis of Apportionment

Expenses of management includes exchange gain/loss,
excluding GST Expenses. Expenses which are solely and
exclusively attributable to a specific Segment i.e. Line of
Business (LOB) and which are specifically identifiable to
that particular segment, are allocated to that segment
and the remaining value of expenses of management are
apportioned to the revenue accounts on the basis of net
premium.

26. Segregation of Policy Holders and Share Holders
funds:

Investment Assets includes policyholders as well as
shareholders. Investment assets are bifurcated at the end
of each quarter between shareholders and policyholders
at ''fund'' level on notional basis in accordance with IRDAI
guidelines.

27. Income from Investments -Basis of apportionment

Investment Income (net of expenses) is apportioned
between shareholders'' fund and policyholders'' fund in
proportion to the balance of these funds at the beginning
of the year.

Investment income (net of expenses) belonging to
Policyholders is further apportioned to Fire, Marine and
Miscellaneous segments in proportion to respective
technical reserves balance at the beginning of the year.

Policy holders fund for this purpose consist of estimated
liability for outstanding claims including IBNR and IBNER,
unexpired risk reserve (URR), Premium deficiency (if
any). catastrophe reserve (if any) and Other Liabilities
net of Other Assets (relating to policy holders) as per
the guidelines of IRDAI. The residual consists of the
shareholder fund.

1. Reinsurance Acceptance Transactions:

Reinsurance acceptance transactions pertaining to the
year have been booked for advices received up to April
12, 2025.

2. Premium Deficiency Reserve:

Unexpired premium reserve at revenue segment level is
found to be sufficient to cover the expected claim cost
and claims related expenses as certified by the appointed
actuary. Hence no premium deficiency reserve is required
to be provided during the year.

3. Reserves against cancellation of policies during free-
look period:

The reserve against cancellation of policies during free-
look period under retail health policies for the period
ended 31^st March 2025, as certified by the actuary, is
?150 Lakhs (PY ?150 Lakhs).

4. IBNR and IBNER:

Provision towards Claims Incurred but Not Reported
(IBNR) and those Incurred but Not Enough Reported
(IBNER) as on March 31, 2025 has been determined by
Appointed Actuary, which is in accordance with accepted
actuarial practice and IRDAI regulations in this regard.

5. taxation:

a) Income Tax: Provision for Tax ?1878 Lakhs (PY.
?33115 Lakhs) shown in Profit and Loss Account
includes ?3439 Lakhs (PY. ?1959 Lakhs) relating to
foreign taxes and reversal of earlier year tax ?25470
lakhs (PY. Nil).

b) From FY 2022-23 the company has been recognizing
and utilizing the available MAT Credit of previous
years to the extent required to be set off against tax
computed as per the normal provisions of the Act
which was not accounted for on account of prudence
and absence of convincing evidence of utilizing it.
Accordingly, MAT credit of ?9284 Lakhs (previous
year ?18415 Lakhs) has been recognized and
utilized during the year and cumulative utilization
amounted to ?52501 lakhs.

c) The Income Tax Assessments of the Company have
been completed up to assessment year 2022-23.
Major disputed demands are in respect of profit on
sale of investment, IBNR, expenses paid to Auto tie-
up dealers. Based on the decisions of the appellate
authority, the interpretations of the relevant
provisions, the management of the Company is of
the opinion that the demands are likely to be either
deleted or substantially reduced and accordingly no
provision has been made for the same. However,
an amount of ?579811 lakhs has been disclosed as
contingent liabilities.

i) A sum of ?2763 Lakhs (PY ?1500 Lakhs)
has been debited to the Profit and Loss
Account on account of reduction in deferred
assets during the year.

ii) Deferred Tax Asset in respect of foreign
branches does not have any timing difference
other than fixed asset.

iii) The Company continues to recognise the
deferred tax asset in respect of temporary
difference mentioned in the above table,
as in the opinion of the management there
are sufficient evidence to establish the
reasonable certainty of realisation of the
deferred tax assets from the future taxable
profits.

e) Taxation Laws (Amendment) Act, 2019 -

The Taxation Laws (Amendment) Act, 2019 was
enacted on 11th December 2019 which amended
the Income Tax Act, 1961 and the Finance Act
(No.2) Act, 2019. It provides domestic companies
with an option to opt for lower tax rate, provided they
do not claim certain deductions. The Company has
not exercised the option to opt for lower tax rate and
has presently considered the rate existing prior to
the amendment. The management is in the process
of evaluating the option to opt for lower tax rate once
it utilises the entire carried forward losses and MAT
credit available under the Income Tax Act.

f) Goods and Service Tax (GST):

The company has received an adjudication order
from the Goods and Services Tax Department
towards non-payment of GST amounting to ?84945
lakhs on supply of group medicliam insurance
services to industrial units located in Special
Economic Zones. The matter is an industry wide
issue and as per opinion received by the company
has merits in defending the notice. The Company
has filed a writ petition before the Hon''ble Bombay
High Court challenging the Order vide writ petition
no 1281 of 2025, date of hearing for admission is
yet to be notified. Considering that the denial of the

zero-rating benefit for the period prior to 01.10.2023
appears to be without proper legal basis, the
company has classified this exposure as “Remote”
and disclosed it as a contingent liability.

The company has also received an adjudication
order from the Goods and Services Tax Department
towards non-payment of GST amounting to ?7045
lakhs on sale of salvage/wreck generated during the
settlement of Motor vehicle claims. The matter is an
industry wide issue and as per opinion received, the
Company has merits in defending the notice. The
Company has filed a writ petition before the Hon''ble
Bombay High Court challenging the Order vide
writ petition no 15219 of 2025, date of hearing for
admission is yet to be notified. The company has
also taken into account the clarification issued by
the department through circular no. 215/9/2024-GST
dated 26.06.2024, which states that the salvage
value deducted from claim settlements should not
be treated as consideration for any taxable supply.
Consequently, the company classified this exposure
as “Remote” and disclosed it as a contingent liability.

6. Statutory Reserves relating to Foreign Branches:

In accordance with Oman Insurance Company Law,
the Head Office had created a contingency reserve of 5
million Omani Riyal in FY 2012-13 for claims related to
the Muscat agency. However, this contingency reserve
is now maintained within the financial records of Muscat
Operations. Consequently, during the current year an
amount of ?7031 lakhs has been transferred from this
contingency reserve to the General Reserve along with
the related foreign currency fluctuation amounting to
?3794 lakhs in the Head Office books.

7. Title deeds of immovable properties:

I. Title deed of the following immovable properties are
pending to be registered in the name of the Company:

a. Thirty-Two properties having book value (Gross
Block) ?1490 Lakhs (P.Y. Sixty-Seven Properties
having book value ?2062 Lakhs) for which
registration formalities are yet to be completed / title
deeds are in process. Out of which,

i. title deeds of Seven properties having
value as per books of ?66 Lakhs (P.Y. ?66
Lakhs) are in the name of General Insurance
Corporation of India and the Company is in
the process to get it transferred in its name.

ii. three properties having book value of ?336
Lakhs (P.Y. ?336 Lakhs) were received from
Tariff Advisory Committee (TAC) and the
registration formalities are still pending.

b. Office property having book value ?217 Lakhs (PY
?217 Lakhs) and Office freehold property having
book value ?752 lakhs (P.Y. ?752 lakhs) for which
agreement registration formalities are pending.

c. One open plot having book value ?24 Lakhs (P.Y.
?24 Lakhs) jointly owned by four PSU Companies
and title deed is in the name of GIC, is under litigation
and Special Civil Application is pending before the
Hon''ble Gujarat High Court.

II One leasehold property having book value of ?3 Lakhs
(P.Y. ?3 Lakhs) where lease term expired and renewal
process is pending with the concerned Government
Authorities.

III Following are the properties for which legal proceedings
are/will be initiated by the Company for acquiring Physical
Possession:

a) Out of total 23 properties owned by the Company,
08 properties are occupied by corporate tenants
and 15 are occupied by Individual Tenants.
Legal proceedings are in process against all 08
corporate tenants. Out of 15 Individual Tenants;
legal proceedings are in process against 11. For
remaining 4 Individual tenant''s eviction proceeding
are contemplated.

b) One Lease hold property consisting of 123 tenements
and 6 Godowns having book value of ?3 Lakhs (P.Y.
?3 Lakhs) is in the possession of the Company but
occupied by inherent tenants. Now, the property is
under the purview of MHADA Authority.

IV As per legal opinion obtained from the Advocates
dated 23.10.2021, 20.02.2023 & 21.02.2023

regarding procedure to be followed to regularize
the title deeds in Company''s name, on perusal, the
Advocates opined that the documents available in
the records of the files are sufficient and having
evidentiary value to prove our ownership (ie.
Gazette Notification issued by Government of
India, Agreement registered/unregistered, share
certificate, Municipal tax, property tax bill etc).
Hence, as per Advocates'' opinion, in another 37 Nos
of units having value of ?169 lakhs are to be treated
as having clear titles.

8. Investments:

a) As certified by the Custodian, securities are held by
the Company as on March 31, 2025. Variations and
other differences, which include shortages, have
been provided for.

b) Provision for standard assets @ 0.40% amounting
to ?5665 Lakhs (P.Y. ?6023 Lakhs) has been made
as per Insurance Regulatory and Development
Authority of India (IRDAI) guidelines.

d) Short-term Investments (Schedule - 8) in debentures
and other guaranteed securities include those, which
are fully repayable in the next year. As regards those
debentures and other guaranteed securities, which
have fallen due and remain unpaid as on March
31, 2025, these have been shown under long-term
investments, as their realisability is unascertainable.
Necessary provision, wherever required, has been
made.

e) Pursuant to the IRDAI regulations the company
had recognised impairment loss of ?10966 Lakhs
in the profit and loss account during the year 2023¬
24 on its equity investment in one of the subsidiary
namely Prestige Assurance PLC, Nigeria, due to
the impairment loss being considered as other than
temporary due to steep fall of Nigerian currency,
Naira. As on Balance Sheet date the currency Naira
has improved as compared to Previous Year and
accordingly impairment loss of ?2109 lakhs has
been reversed during the year.

f) Fixed deposits forming part of Investment Assets,
amounting to ?2,61,331 lakhs and ?365 lakhs
due within 12 months and more than 12 months
respectively, have been included under Cash and
Bank Balance in Schedule 11, as per consistent
practice followed.

9. Reinsurance, Coinsurance, Inter Office, GST Balances
and old credit /debit balances:

a) The net balances due to/due from in respect of re¬
insurance activities of the company ?541637 lakhs
comprising of ?5,89,529 Lakhs (Dr.) and ?47,892
lakhs (Cr.) contain various entries outstanding for
more than 10 years where process of matching
open items, confirmation and reconciliation is in
progress. The above include balances relating to
Terrorism Pool ?3,45,823 lakhs and Nuclear Pool

of ?23,308 lakhs due from General Insurance
Corporation of India (GIC Re) and ?34,979 Lakhs
due from Agricultural Insurance Company of India
Ltd. for which confirmation of balances is received
but these are subject to reconciliation in respect of
old entries appearing in the books. These accounts
are still under the process of compilation/age-wise
analysis/ reconciliation and segregating into debit
and credit balances. Also, there are migration
differences which need to be reconciled. Pending all
such activities the impact on the financial statements
is unascertainable. The process of matching and
reconciliation by the task force formed by the
company is at different stages and any resultant
accounting adjustments shall be carried out on
outcome of such process.

As against Net Reinsurance balance of ?5,41,637
Lakhs(Net) (Dr.) as on March 31,2025, the Company
has maintained a provision of ?93536 Lakhs up to
March 31,2025, towards doubtful debts as a prudent
measure. During the period ended March 31, 2025,
the Company has written off (net debit) non-moving
reinsurance balances of ?5,383 Lakhs.

b) In respect of Coinsurance business, the balances
with various Co-insurers represent a net receivable
of ?49,304 lakhs (receivable of ?85,335 lakhs and
payable of ?36,031 lakhs), which included balances
relating to PMFBY amounting to ?1,559 lakhs
(Net). The process of obtaining confirmations and
reconciliation of balances is at different stages
and entries remaining to be reconciled based on
the confirmation are also being attended to. Age-
wise breakup of the outstanding entries has been
compiled based on available information.

Based on the Board approved policy depending on
the age of outstanding, the company has maintained
provision of ?22,395 lakhs during the year (Previous

year ?34,075 lakhs) against the net coinsurance
balance of ?49,304 lakhs and written off an amount
of ?2520 lakhs as on March 31, 2025.

c) The reconciliation of various accounts relating
to inter-office accounts of domestic and foreign
operations amounting to ?12,357 Lakhs (Net Debit)
[PY ?1,045 Lakhs (Net Debit)], Control Accounts,
certain banking transactions, loans and advances
including those given to employees and other
accounts including indirect tax related balances
is under progress, the impact of the above, if
any, on the Standalone Financial statements is
unascertainable.

d) As per the consistent practice followed by the
Company, interest accrued on employee loans
is recognized to the extent recovered from the
employee instead accrued to the account of the
employee. The impact, if any, arising out of the
above may not be material though the same has
not been identified.

e) Old balances other than policy holder dues mainly
relating to various control accounts amounting to
?1,637 lakhs (Net credit) (PY ?13,779 lakhs Net
debit) outstanding for more than three years has
been credited to Profit & Loss Account during the
year. Necessary accounting adjustments in the
books of operating offices would be carried out in
due course. As per the board approved policy, the
Company has written-off balances under various
control accounts outstanding more than 10 years
aggregating to ?2890 lakhs and has maintained a
provision amounting to ?4251 lakhs against debit
balances more than 3 years and less than 10 years,
during and as at March 31,2025 respectively.

f) In view of various accounts being reconciled
and balances under confirmation, the effect of
such pending reconciliation on compliance of tax
laws has been ensured to the extent of available
information and necessary adjustments /payments
of any liability arising out of such reconciliation is to
be done in due course.

15. Corporate Social Responsibilities (CSR):

As per Section 135 of the Companies Act 2013 (the Act), the Company was required to spend an amount of ?803 lakhs (PY
?1832 lakhs) for the financial year 2024-25.

The charge for the year to profit and loss account on account of CSR amounting to ?803 Lakhs (PY ?1832 lakhs) consists
of following:

a) An amount of ?617 Lakhs (P Y ?293 Lakhs) spent directly & through implementing agencies.

b) The balance unspent amount for the current year ended March 31, 2025 of ?186 Lakhs (P.Y. ?1539 Lakhs) which has
been provided for in the books. The balance unspent CSR amount of current year is lying in separate Unspent CSR
Bank Account.

16. Books maintained on Calendar year:

The accounts incorporate Audited accounts of branches in Fiji and Thailand which are prepared on calendar year basis
as per the requirement of local laws. There are no material changes during the period January 1, 2025 to March 31, 2025
requiring adjustments to figures reported in the audited accounts as received. Fixed deposits aggregating to ?18838 lakhs

17. Accounts of Run-off offices:

Hong Kong and Manila Offices of the company are since in Run-off status as the company has stopped any new business in
these locations. The accounts of Manila office have been prepared on liquidation basis and the accounts of Hong Kong office
are prepared based on going concern basis. In the case of Kuwait office there is material uncertainty about its going concern
status. In the opinion of the management this does not have any material impact on the standalone financial statements.

18. Analysis of Unclaimed amounts of Policyholders/Consumers:

As required by IRDAI Master circular no. IRDA/F&I/CIR/Misc/282/11/2020 dated November 17, 2020 read with subsequent
modification to the master circular number IRDA/LIFE/CIR/Misc/41/2/2024 dated 16^th February, 2024, age-wise analysis of
unclaimed amount of the policyholders amounting to ?21458 Lakhs (PY ?22942 Lakhs) as at March 31, 2025 representing
the excess premium collected, refund premium, stale cheque accounts and Claims settled but not paid to policyholders/
Insured is as under:

Footnote 1: The Company received an order from
Competition Commission of India (CCI) imposing a penalty
of ?25107 Lakhs in 2015-16. The Company contested the
order in Competition Appeal Tribunal and the Tribunal
awarded a penalty of ?20 Lakhs as against ?25107 Lakhs
of CCI order. The penalty was paid in January 2017. CCI
has appealed against the order of the Tribunal at the Apex
Court and the case has been admitted in the Apex Court
in March 2017. As per the latest information available,
the case has been awaiting a hearing since the 10th of
August, 2017.Counter-affidavit/reply has already been
filed by NIA as on March 31, 2023.

Footnote 2: Bombay Stock Exchange (BSE) and National
Stock Exchange (NSE) each have levied a penalty of
?472 lakhs for quarter ended September 30, 2024 and
a penalty of ?117 lakhs for quarter ended December 31,
2024 for non-compliance with Regulation 17(1) of SEBI
(LODR), 2015. The Company had applied for waiver of
the penalties, as appointment of Directors can only be
done by the Ministry of Finance and the Company has no
authority regarding the appointment of Directors.

Footnote 3: The company has received a penalty
amounting to ?84945 lakhs and ?7045 lakhs for non¬

payment of GST on supply of group medicliam insurance
services to industrial units located in Special Economic
Zones and sale of salvage/wreck generated during the
settlement of Motor vehicle claims, respectively. Both the
matters are industry wide and as per opinion received,
the company has merits in defending the notice. The
Company has filed a writ petition before the Hon''ble
Bombay High Court challenging the Order.

Footnote 4: The Income Tax Department imposed
penalties on the company for AY 2016-17 and AY 2019¬
20 following disallowance of payments to auto dealers.
However, the company has received a favorable order
on the same matter for AY 2014-15 from the Income
Tax Appellate Tribunal (ITAT). Based on the same, the
company has filed appeals with the before National
Faceless Appeal Centre - NFAC (erstwhile CIT(A))
against the penalties.

22. Internal Controls:

The Company has a fairly adequate internal control and
appropriate validations in the system. The Company is in
the continuous process of further strengthening internal
controls in other areas of its operations, by bringing more

controls and validation in system. The Internal Audit
System including that relating to Foreign offices is also
being strengthened and is under comprehensive review.

23. Fraud Monitoring Cell:

The Company has a Fraud Monitoring Cell which monitors
external frauds reported and a Vigilance Department
which monitors matters related to employees. The said
fraud cell compiles data based on inputs from operating
offices. As per the assessment made by the Cell, there
were no matters related to external frauds reported during
the year, which required any disclosure or adjustments
to the standalone financial statements of the Company
except as under:

a) Online Fraud using Broker Portal has been reported
where 514 two-wheeler Motor policies issued in the
system were modified as four wheeler policies and
given to customers. The Company has cancelled all
the policies ab initio without any refund and informed
the concerned RTOs by registered post under the
relevant rules and guidelines of the Company. The
premium amount has been forfeited and there is no
revenue loss to the Company.

b) Dehradun RO reported some cases of irregular
premium deposits to the tune of ?6 lacs under health
insurance policies. A Special Audit was conducted,
and the concerned branch in-charge has been
suspended. Appropriate action is also being initiated.

c) Jaipur RO has recently reported 96 fake policies
issued through Square Insurance web integration
online channel. FIR has been lodged against the
Broker. The R.O. has been advised to initiate a
special audit.

24. a) 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 lend or invest
in party identified by or on behalf of the Company
(Ultimate Beneficiaries).

b) The Company has not received any fund from any
party(s) (Funding Party) with the understanding that
the Company shall whether, directly or indirectly lend
or invest in other persons or entities identified by or
on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

25. The Code on Social Security, 2020 (“Code”) relating to
employee benefits during the employment and post¬
employment benefits has been published in the Gazette
of India on September 28, 2020. The Ministry of Labour
and Employment has released draft rules for the Code

on November 13, 2020. The effective date from which
these changes are applicable is yet to be notified. The
Company will assess and record the impact, if any, when
the rules are notified, and the Code becomes effective.

26. Wage revision for employees of PSU GIC is due w.e.f.
Aug-22. Pending finalisation of wage negotiations, the
company has made provision of wage bill based on
management assessment amounting to ?19807 Lakhs
towards wage revision during the year ended March 31,
2025 and the total provision as on March 31, 2025 is
?45095 Lakhs.

27. Based on the advisory from IRDAI, the Company has
set up a Committee for IND-AS implementation and
appointed knowledge partner who has completed GAP
analysis and submitted GAP assessment report. For
phase-II (solution and system design), the company has
finalised the vendor for procurement of sub ledger solution
and is in the process of floating tender for engagement of
implementation partner.

28. In accordance with Proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014, the accounting software used
by the company for maintaining its books of account
have a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the
books of account along with the date when such changes
were made and ensuring that the audit trail cannot be
disabled and these edit logs have been preserved as per
the statutory requirements. Further, the company is in the
process of compliance of Section 128 of the Companies
Act 2013 and rules thereunder as amended, regarding
maintaining of books of accounts and papers maintained
in electronic mode at Foreign branches of the company
to be accessible in India at all times and maintenance of
back up of its books of accounts and papers at servers
physically located India on a daily basis.

29. The company has changed its policy for Expenses of
Management which shall henceforth not include Provision
for Bad & Doubtful debts. Consequent to this, expense
allocation is lower by ?74721 lakhs for the year ended
March 31, 2025.

30. Proposed Dividend for current year: The Board of
Directors of the Company proposed a final dividend of
?29664 lakhs (?1.80 per share) being 36% of the Paid-
up share Capital of the Company, subject to the approval
of the members at the Annual General meeting. In terms
of Revised Accounting Standard (AS)4, Contingencies
and events occurring after the Balance sheet date as
notified by the Ministry of Corporate affairs through the
amendments to the Companies (Accounting Standard)
Rules, 2016, the company has not appropriated proposed
dividend from the standalone Profit and Loss account for
the year ended March 31,2025.

Jyoti Rawat Vimal Kumar Jain Kasturi Sengupta Girija Subramanian

Company Secretary Chief Financial Officer Executive Director Chairman cum Managing Director

DIN: 11017873 DIN: 09196957

As per our report of even date For Chokshi & Chokshi LLP

For R. Devendra Kumar & associates Chartered Accountants

^{Chartered Accountants} Firm Reg. No. 101872W/W100045

Firm Reg. No. 114207W

anand Golas dharmista Shah

Partner Partner

Membership Number 400322 Membership Number 108845

Mumbai, May 19, 2025

---

Mar 31, 2024

24. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of obligation. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Standalone financial statements.

25. Expenses of Management-Basis of Apportionment: Expenses of management includes provision for bad and doubtful debts and exchange gain/loss, excluding GST Expenses. Expenses which are solely and exclusively attributable to a specific Segment i.e. Line of Business (LOB) and which are specifically identifiable to that particular segment, are allocated to that segment and the remaining value of expenses of management are apportioned to the revenue accounts on the basis of net premium.

26. Segregation of Policy Holders and Share Holders funds

Investment Assets includes policyholders as well as shareholders. Investment assets are bifurcated at the end of each quarter between shareholders and policyholders at ''fund'' level on notional basis in accordance with IRDAI guidelines.

27. Income from Investments -Basis of Apportionment

Investment Income (net of expenses) is apportioned between shareholders'' fund and policyholders'' fund in proportion to the balance of these funds at the beginning of the year.

Investment income (net of expenses) belonging to Policyholders is further apportioned to Fire, Marine and Miscellaneous segments in proportion to respective technical reserves balance at the beginning of the year. Policy holders fund for this purpose consist of estimated liability for outstanding claims including IBNR and IBNER, unexpired risk reserve (URR), Premium deficiency (if any). catastrophe reserve (if any) and Other Liabilities net of Other Assets (relating to policy holders) as per the guidelines of IRDAI.The residual consists of the shareholder fund.

1. Reinsurance Acceptance Transactions: Reinsurance acceptance transactions pertaining to the year have been booked for advices received up to April 12, 2024.

2. Premium Deficiency Reserve:

a) Unexpired premium reserve at revenue segment level is found to be sufficient to cover the expected claim cost as certified by the appointed actuary and the claims related expenses as estimated by the management. Hence no premium deficiency reserve is required to be provided during the year.

b) The reserve against cancellation of policies during free-look period under retail health policies for the period ended 31st March 2024, as certified by the actuary, is ? 150 Lakhs (PY ?150 Lakhs).

3. Amortization of Pension liability as per IRDAI approval:

The Government of India by Gazette Notification no. S.O. 1627 (E) dated April 23, 2019 notified amendment under the General Insurance (Employees) Pension Scheme 1995, allowing one more pension option to the employees who have joined the Company before June 28, 1995. IRDAI vide its letter ref. -411/F&N(NL)Amort-EB/2019-20/124 dated July 07, 2020, had granted approval for the amortization of the pension liability on account of regular employees, over a period of not exceeding five years with effect from FY 2019-20. Accordingly, the balance of unamortized pension liability of ? 41,014.00 Lakhs as on April 1, 2023 has been fully charged to revenue during the year.

4. Taxation:

a) Income Tax: Provision for Tax ?33,114.80 Lakhs (PY. ?21,386.06 Lakhs) Current Tax shown in Profit and Loss Account includes ?1,959.06 Lakhs (PY. ?2,364.72 Lakhs) relating to foreign taxes.

b) In respect of profit on sale of investments, the company has been claiming exemption u/s 10(38) of the Income Tax Act, 1961 till FY 2017-18 and deduction under section 55(2)(ac) of the Income Tax Act, 1961(IT Act) from FY 2018-19 to FY2021-22. Both the above exemption and deduction claimed by the company are under dispute with the Income Tax Department and the company has favourable orders by Bombay High Court, ITAT Mumbai and CIT (Appeals) in respect of its claim u/s 10(38) and from CIT (Appeals) in the case of deduction u/s 55(2)(ac) of the IT Act. Effective FY 2022-23, the total income of the Company for the year has been computed as per the normal provisions of the IT Act.

From FY 2022-23, the company has been recognizing and utilizing the available MAT Credit of previous years to the extent required to be set off against tax computed as per the normal provisions of the Act which was not accounted for on account of prudence and absence of convincing evidence of utilizing it. Accordingly, MAT credit of ?18,414.74 Lakhs (previous year ?24,802.43 Lakhs) has

been recognized and utilized during the year and cumulative such utilization amounts to ? 43,217.18 lakhs.

c) The Income Tax Assessments of the Company have been completed up to assessment year 2022-23. Major disputed demands are in respect of profit on sale of investment, IBNR, expenses paid to Auto tie-up dealers. Based on the decisions of the appellate authority, the interpretations of the relevant provisions, the management of the Company is of the opinion that the demands are likely to be either deleted or substantially reduced and accordingly no provision has been made for the same. However, an amount of ? 68,482.00 lakhs has been disclosed as contingent liabilities. (Refer Note 16C).

d) Deferred Taxes:

The components of temporary differences resulting into Deferred Tax Assets/(Liabilities) are as under:

1) A sum of ? 1,500.22 Lakhs (PY. ? 2,403.19 Lakhs) has been credited to the Profit and Loss Account on account of creation of deferred assets during the year.

ii) Deferred Tax Asset in respect of foreign branches does not have any timing difference other than fixed asset.

iii) The Company continues to recognise the deferred tax asset in respect of temporary difference mentioned in the above table, as in the opinion of the management there are sufficient evidence to establish the reasonable certainty of realisation of the deferred tax assets from the future taxable profits.

e) Taxation Laws (Amendment) Act, 2019 -

The Taxation Laws (Amendment) Act, 2019 was enacted on 11th December 2019 which amended the Income Tax Act, 1961 and the Finance Act (No.

2) Act, 2019. It provides domestic companies with an option to opt for lower tax rate, provided they do not claim certain deductions. The Company has not exercised the option to opt for lower tax rate and has presently considered the rate existing prior to the amendment. The management is in the process of evaluating the option to opt for lower tax rate once

it utilises the entire carried forward losses and MAT credit available under the Income Tax Act.

5. Statutory Reserves relating to Foreign Branches:

The Company, in accordance with Oman Insurance Company Law, has created contingency reserve for claims for Muscat agency for 5 million Omani Riyal. The reserve closing balance as on March 31, 2024 is f 10,825.25 Lakhs (P.Y. f 10,672.12 Lakhs). There is change in closing balance of f 153.13 Lakhs (P.Y. f 836.37 Lakhs) reserve as compared to previous year due to change in foreign currency closing rate as on March 31, 2024.

6. Title deeds of immovable properties:

I. Following are the immovable properties title deeds which are pending to be registered in the name of the Company:

a) Sixty seven properties having book value (Gross block) f 2062.18 Lakhs (P.Y. Sixty Nine Freehold properties having book value f 2049.81 Lakhs) for which registration formalities are yet to be completed /in process.

i. Out of which title deeds of Twenty-Eight properties having book value of f162.70 Lakhs (P.Y. f162.70 Lakhs) are in the name of GIC and the Company is in the process to get it transferred in its name.

ii. Out of which Three properties having book value of f 336.02 Lakhs (P.Y. f 336.02 Lakhs) were received from Tariff Advisory Committee (TAC) and the registration formalities are still pending.

b) One Office property having book value f 216.91 Lakhs (P.Y. f 216.91 Lakhs) for which agreement registration formality is pending.

c) One Office freehold property having book value f 752.33 lakhs (P.Y. f 752.33) for which agreement registration formality is pending.

d) One open plot having book value f 23.84 Lakhs (P.Y. f 23.84 Lakhs) jointly owned by four PSU Companies and title deed is in the name of GIC, is under litigation and Special Civil Application is pending before the Hon''ble Gujarat High Court.

e) 34 properties having book value f 164.66 lakhs (P.Y. f156.66 lakhs) are treated as having clear title based on the advocates opinion in view of documents like gazette notification issued by the Government, share certificate, municipal tax, property tax, registered/unregistered agreement being available in the records of the company.

II. One leasehold property having book value of f 2.77 Lakhs (P.Y. f 2.77 Lakhs) where lease term expired and renewal process is pending with the concerned Government Authorities.

III. Following are the properties for which legal proceedings are initiated by the Company for acquiring Physical Possession:

a) Out of total 26 properties owned by the Company, 11 properties are occupied by corporate tenants and 15 are occupied by Individual Tenants. Legal proceedings are in process against all 11 corporate tenants. Out of 15 Individual Tenants; legal proceedings are in process against 11. For remaining 4 Individual tenants'' eviction proceeding is contemplated.

b) One Lease hold property consisting of 123 tenements and 6 Godowns having book value of f 3.42 Lakhs (P.Y. f 3.42 Lakhs) is in the possession of the Company but occupied by inherent tenants.

7. Investments:

a) As certified by the Custodian, securities are held by the Company as on March 31, 2024. Variations and other differences, which include shortages, have been provided for.

b) Provision for standard assets @ 0.40% amounting to f 6,022.63 Lakhs (P.Y. f 4,355.17 Lakhs) has been made as per Insurance Regulatory and Development Authority guidelines on (i) Term Loan (PFPS/DTL), (ii) Debentures, (iii) Infrastructure Investments, (iv) Bonds/Debentures of HUDCO, (v) Bonds/Debentures of Institutions accredited to NHB, (vi) Govt. Guaranteed Bonds/Securities and (vii) Housing and Fire fighting Loans to State Governments.

e) Short-term Investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on March 31, 2024, these have been shown under long-term investments, as their realisability is unascertainable. Necessary provision, wherever required, has been made.

f) Pursuant to the IRDAI regulations the company has recognised impairment loss of ?10965.51 Lakhs in the profit and loss account for the year on its equity investment in one of the subsidiary namely Prestige Assurance PLC, Nigeria, which is a listed company in Nigeria. Impairment has resulted due to defacto devaluation by the Central Bank of the country in current FY 2023-24 by sudden and steep fall of Nigerian currency Niara. The impairment loss has been considered as other than temporary therefore, the same is not accounted for as Fair Value change. Accordingly, amount previously recognized as Fair Value Change has been reversed upon impairment as aforesaid.

8. Reinsurance, Coinsurance, Inter Office, GST and

PMFBY Balances and old credit /debit balances:

a) The net balances due to/due from in respect of re-insurance activities of the company amounting to ?177,804.89 lakhs (Dr.) out of total reinsurance receivable balance of ?5,24,754.31 lakhs are subject to confirmation, compilation/age-wise analysis and necessary reconciliation. Also, there are migration differences which need to be reconciled. Pending all such activities, the impact on the financial Statements is unascertainable.

The Company has maintained provisions of ? 13,967.33 Lakhs (P.Y. ? 14,744.96 Lakhs) towards doubtful debts from reinsurers as on March 31, 2024 in accordance with the Board approved policy.

Pursuant to the policy, a sum ? 1058.88 Lakhs (net debit) (PY ? 2,465.37 Lakhs) has been written-off.

b) In respect of Coinsurance business, the balances with various Co-insurers represent a receivable of ?88,390.26 lakhs and payable of ? 47,567.04 lakhs, which included balances relating to PMFBY amounting to ?14,839.34 lakhs (Net). The process of obtaining confirmations and reconciliation of balances is at different stages and entries remaining to be reconciled based on the confirmation are also being attended to. Age-wise breakup of the outstanding entries has been compiled based on available information.

Based on the Board approved policy depending on the age of outstanding, the company has made additional provision of ? 242,47.89 lakhs during the year (Previous year ? 9,827.30 lakhs ). The cumulative provision held amounts to ? 340,75.19 lakhs as against the net coinsurance balance of ? 40,823.22 lakhs as on March 31, 2024.

c) The reconciliation of various accounts relating to inter-office accounts of domestic and foreign operations amounting to ? 10,45.10 Lakhs (Net Debit) [P.Y. 10,126.60 Lakhs (Net Debit)], Control Accounts, certain banking transactions, loans and advances including those given to employees and other accounts including direct and indirect tax related balances is under progress, the impact of the above, if any, on the Standalone Financial statements is unascertainable.

d) As per the consistent practice followed by the Company, interest accrued on employee loans is recognized to the extent recovered from the employee instead accrued to the account of the employee. The impact, if any, arising out of the above may not be material though the same is not identified.

e) Old balances other than policy holder dues mainly relating to various control accounts amounting to f 13,779.05 Lakhs (Net debit) (P.Y. f 4,906.92 Net credit) outstanding for more than three years has been debited to Profit & Loss Account during the year. Necessary accounting adjustments in the books of operating offices would be carried out in due course.

f) In view of various accounts being reconciled and balances under confirmation, the effect of such pending reconciliation on compliance of tax laws has been ensured to the extent of available information and necessary adjustments /payments of any liability arising out of such reconciliation is to be done in due course.

9. Bhavishya Arogya Scheme:

The Company has under one of its old run-off schemes namely Bhavishya Arogya Scheme received premium in prior year amounting to f 4,037.86 Lakhs which have been recognised as premium during the year ended March 31, 2021 in revenue account. As the claims pay out pattern has not yet stabilised under the said Scheme, the Company has maintained provision for claims liability amounting to f 4,000.00 Lakhs (P.Y. f 4,000.00 Lakhs) as IBNR for the year ended March 31, 2024.

10. Receipts & Payments Account:

Receipts & Payments Account is subject to reconciliation of various inter office accounts.

21. Liability under Micro, Small and Medium Enterprise Development Act, 2006:

The Company has initiated the process of capturing the data relating to enterprises which have been providing goods and services to the Company, falling within the purview of Micro, Small and Medium Enterprises Development Act, 2006, in the accounting system. Pending system augmentation, the disclosure in respect of the amount payable to such Micro, and Small Enterprises as at March 31, 2024 has not been made in the standalone financial statements. In view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

22. Penalty:

As per IRDAI Circular No 005/IRDAI/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of the penalty imposed by various regulators and Government authorities during the year:

Note 1 : The company has received an adjudication order from the Goods and Services Tax Department towards non-payment of GST amounting to f 1,93,012.78 lakhs on co-insurance premium accepted and towards nonpayment of GST amounting to f 44,900.70 lakhs on reinsurance commission earned on reinsurance ceded to various Indian and Foreign Reinsurance companies plus interest and penalty thereon. The matter is industry wide and as per opinion received the company has merits in defending the notice. The Company with other General Insurance companies filed a writ in the Hon''ble Bombay High Court challenging the Order vide writ petition no 4099 of 2024 date of hearing for admission is yet to notified.

Note 2 : The Company received an order from Competition Commission of India (CCI) imposing a penalty of f 25,107.00 Lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of f 20.00 Lakhs as against f 25,107.00 Lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017. As of the latest information available, the case has been awaiting a hearing since the 10th of August, 2017.Counter-affidavit/ reply has already been filed by the company.

23. Internal Controls:

The Company has a fairly adequate internal control and appropriate validations in the system. The Company is in the continuous process of further strengthening internal controls in other areas of its operations, by bringing more controls and validation in system. The Internal Audit System including that relating to Foreign offices is also being Strengthened and under comprehensive review.

24. Fraud Monitoring Cell:

The Company has a Fraud Monitoring Cell which monitors external frauds reported and a Vigilance Department which monitors matters related to employees. The said fraud cell compiles data based on inputs from operating offices. As per the assessment made by the Cell, there were no matters related to external frauds reported during the year, which required any disclosure or adjustments to the standalone financial statements of the Company except as under:

a) During FY 2022-23, In Digital Hub third-party frauds were detected whereby certain third parties/insured have committed offences/fraud by modifying 17261 policies issued by the digital hub. During the FY 202324 compliant has been lodged and statement has been recorded by the police on 13/07/2023. In the view of management this requires no adjustments to the standalone financial statements as the said

fraud has no material financial impact.

b) In case of 4 operating offices Online Frauds using Broker Portal has been reported where Motor Insurance policies for four wheelers were issued through the portal as two-wheelers consisting of 7699 policies. The Company has filed FIR in cases of 3 offices out 4 and is in the process of filing FIR for the remaining 1 office. In the view of management this requires no adjustments to the standalone financial statements as the said fraud has no material financial impact.

c) In case of 1 operating office each under Mumbai RO-1 and Jaipur RO, fraudulent Motor policies were found to have been issued from online portals and the same has been cancelled ab initio without any refund and the concerned RTO''s were informed by registered Ad post under the relevant rules and guidelines of the Company. The premium amount has been forfeited and there is no revenue loss to the Company.

d) In case of 2 operating offices Online Frauds using Customer Portal has been reported where Motor Insurance policies for four wheelers were issued through the portal as two-wheelers consisting of 111 policies. The Company is in the process of filing FIR for both the offices and in the view of management this requires no adjustments to the standalone financial statements as the said fraud has no material financial impact.

e) In case of policy bazar operating offices Online Frauds using Customer Portal has been reported where Motor Insurance policies for four wheelers were issued through the portal as two-wheelers consisting of 1716 policies. The Company has filled the FIR against the concerned POS and in the view of management this requires no adjustments to the standalone financial statements as the said fraud has no material financial impact.

25. a) 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 lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or

on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

26. The Code on Social Security, 2020 (“Code”) relating to employee benefits during the employment and postemployment benefits has been published in the Gazette of India on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified, and the Code becomes effective.

27. Wage revision for employees of PSU GIC is due w.e.f. Aug-22. The company has made provision @7% of wage bill based on management assessment amounting to ? 155,67.67 Lakhs towards wage revision for the year ended March 31, 2024 and the total provision as on March 31, 2024 is amounting to ? 252,87.67 Lakhs.

28. Provision towards Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as on March 31, 2024 has been determined by Appointed Actuary, which is in accordance with accepted actuarial practice and IRDAI regulations in this regard.

29. Based on the advisory from IRDAI, the Company has set up a Committee for IND-AS implementation and appointed knowledge partner who has completed GAAP analysis and submitted GAAP assessment report. For phase-II (solution and system design), the company is in the process of floating RFP for procurement of sub ledger solution and engagement of implementation partner.

30. In accordance with Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, the accounting software used by the company for maintaining its books of account have a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such

changes were made and ensuring that the audit trail cannot be disabled except in the case of 1 office where such compliance was pending for a part of the year and certain processes of preparation of final accounts which are carried out of such softwares. Further the company is in the process of compliance of proviso to Rule 3(5) read with Section 128 of the Companies Act 2013, regarding maintenance of books of accounts and papers maintained in electronic mode at Foreign branches of the company to be accessible in India at all times and maintenance of back up of its books of accounts and papers at servers physically located India on a daily basis.

31. Pursuant to IRDAI (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations, 2023, the Company has changed its policy for Expense of Management which shall henceforth exclude GST Expenses. Consequent to this, allocation of expenses to the Fire Insurance Revenue Account, Marine Insurance Revenue Account and Miscellaneous Insurance Revenue Account is lower by ? 852.53 lakhs, ? 154.51 lakhs and ? 314.36 lakhs respectively.

32. Proposed Dividend for current year:

The Board of Directors of the Company proposed a final dividend of ? 33,948.80 lakhs being 41.20% of the Paid-up share Capital of the company, subject to the approval of the members at the Annual General meeting. In terms of Revised Accounting Standard (AS) 4, Contingencies and events occurring after the Balance sheet date as notified by the Ministry of Corporate affairs through the amendments to the Companies (Accounting Standard) Rules, 2016, as amended, the company has not appropriated proposed dividend from the standalone Profit and Loss account for the year ended March 31, 2024.

33. Previous year figures have been regrouped / rearranged, wherever necessary.

20 Investment income (Net of Expenses) is apportioned between Revenue Accounts and Profit and Loss account in proportion to the balance in the Shareholders'' funds and Policyholders'' funds at the beginning of the year. The same is further apportioned to fire, marine and miscellaneous Revenue Accounts in proportion to the technical reserve balance at the beginning of the year.

21 The Unexpired Premium Reserve (UPR) at a revenue segment level was found to be sufficient to cover the expected claims cost as certified by the Appointed Actuary and the claim related expenses as estimated by the management . Hence no premium deficiency reserve is required to be provided.

22 Previous year figures have been regrouped / rearranged, wherever necessary.

Jyoti Rawat Vimal Kumar Jain Smita Srivastava Titus Francis

Company Secretary Chief Financial Officer Executive Director Executive Director

DIN: 09250237 DIN: 10124446

As per our report of even date

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

Chartered Accountants Chartered Accountants

Firm Reg. No. 114207W Firm Reg. No. 000018N/N500091

Anand Golas Ninad Mulay

Partner - Membership No. 400322 Partner - Membership No. 161822

May 22, 2024

Mumbai

---

Mar 31, 2022

Sick Leave:

As at March 31,2022 liability on account of sick leave entitlement is amounting to Rs. 7,224.00 Lakhs calculated based on actuarial valuation.

Extension of Pensionary Benefits to Special Voluntary Retirement Program (SVRP) 2003/ Special Voluntary Retirement Scheme (SVRS) 2004:

Based on the Judgement of the Hon''ble Supreme Court, in case of National Insurance Company Ltd. Vs Kripal Singh and administrative guidelines on General Insurer''s (Public Sector) Association of India (GIPSA) dated December 03,

2021, in respect of pensionary benefit to be allowed to SVRS/ SVRP optees who had rendered qualifying service for more than 10 years but less than 20 years and benefit of 5 years notional service in terms of para 30(5) of the General Insurance (Employees) Pension Scheme 1995 to SRVP 2003/ SVRS 2004 optees, during the year ended March 31,

2022, the Company has made provision of Rs. 4,873.08 Lakhs towards the additional pension liability payable under SVRP 2003/ SVRS 2004.

Lease:

The Company''s office premises and residential flats for employees are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals amounting to Rs. 16,738.05 Lakhs (P.Y. Rs. 15,850.30 Lakhs) in respect of obligation under operating lease are charged to revenue account.

The Company does not have any outstanding diluted potential equity share. Consequently, the basic and diluted earnings per share of the Company remain the same.

’. Corporate Social Responsibilities (CSR):

As per Section 135 of the Companies Act, 2013 (the Act), the Company was required to spend an amount of Rs. 2,835.00 Lakhs (P.Y. Rs. 3,532.00 Lakhs) for the financial year 2021-22.

The charge for the year to profit and loss account on account of CSR amounting to Rs. 2,835.00 Lakhs (P.Y. Rs. 4,529.91 Lakhs) consists of following:

a) An amount of Rs. 188.47 Lakhs (PY Rs. 1,745.21 Lakhs) has been spent through implementing agencies.

b) The balance unspent amount for the current year ended March 31, 2022 of Rs. 2,646.53 Lakhs (PY. 1,786.79 Lakhs) have been provided in the books. The balance unspent CSR amount of current year is lying in separate Unspent CSR Bank Account as at March 31,2022. Unspent CSR amount of F.Y. 2020-21 was paid to PM CARES Fund in May 2021.

c) In F.Y. 2020-21, the management of the Company made provision towards unspent ongoing CSR projects amounting to Rs. 1,077.94 Lakhs, which was transferred to a separate Unspent CSR Bank Account in April 2021. This amount of Rs. 1,077.94 Lakhs included liability of Rs. 80.03 Lakhs which was paid in F.Y. 2019-20 to an implementing agency but the said amount was returned as it was unable to spend the amount for the intended purpose. Out of the said amount, an amount of Rs. 218.46 Lakhs have been utilized during F.Y. 2021-22 and remaining amount of Rs. 859.48 Lakhs is kept in the designated bank account as per the requirements of CSR rules.

18. Books maintained on Calendar year: The accounts incorporate Audited accounts of branches in Fiji and Thailand which are prepared on calendar year basis as per the requirement of local laws. There are no material changes for the period January 2022 to March 2022.

19. Unaudited accounts of foreign branches: The accounts of run-off Agency at Colombo and representative office at Myanmar have been incorporated on the basis of unaudited accounts.

Further as per the IRDAI circular no IRDAI/F&A/CIR/CPM/134/07/2015, the Company is required to invest the above said total amount of Rs. 18,127.77 Lakhs (PY. Rs. 18,319.62 Lakhs) with accrued interest of Rs. 4,313.55 Lakhs (PY. Rs.3,825.48 Lakhs), totalling to Rs. 22,441.32 Lakhs (PY. Rs. 22,145.10 Lakhs), whereas the fixed deposit created for the same is Rs. 23,886.68 Lakhs (PY. Rs. 23,184.71 Lakhs) with accrued interest as on March 31, 2022 Rs 423.81 Lakhs (PY. Rs. 348.26 Lakhs), totalling to Rs. 24,310.49 Lakhs (P.Y. Rs. 23,532.97 Lakhs).

Provisions of IRDAI Master circular on Unclaimed Amounts of Policy Holders has been reviewed by the Policy Holder Protection Committee and quarterly returns as contained in the Schedule I of the said circular is addressed and accordingly unclaimed amounts more than Rs. 1,000/- are uploaded on the Website of the Company associated with necessary electronic communication to the respective policy holders.

Liability under Micro, Small and Medium Enterprise Development Act, 2006:

The Company has initiated the process of capturing the data relating to enterprises which have been providing goods and services to the Company, falling within the purview of Micro, Small and Medium Enterprises Development Act, 2006, in the accounting system. Pending system augmentation, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at March 31, 2022 has not been made in the standalone financial statements. In view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

Note 1 : The Company received an order from Competition Commission of India (CCI) imposing a penalty of Rs. 25,107.00 Lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of Rs. 20.00 Lakhs as against Rs. 25,107.00 Lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017.The case is not yet listed for hearing as on March 31, 2022.

Note 2 : BSE and NSE imposed penalty on May 17, 2021, August 20, 2021, November 22, 2021, February 21, 2022, and May 20,2022 for non-compliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosures Requirements), 2015 pertaining to the composition of the Board of Directors defaults on account of:

a) no woman independent Director on the Board of the Company during the Financial Year.

b) Number of Directors being less than six during the periods from July 01,2021 till August 05, 2021, September 06, 2021 till December 20, 2021 and from March 01,2022 till March 31, 2022 respectively;

c) number of Independent Directors were less than the requisite number during the period from April 01,2021 till December 20, 2021; and

d) The vacancies caused by the cessation of Independent Directors were not filled in within the prescribed period. from April 01, 2021 to December 20,2021

The Company has appealed for waiver of these penalties, as the non-compliance is due to delay in appointment of directors which is solely dependent upon Government of India.

24. Amount receivable under various State Government Health Insurance Schemes:

a) An amount of Rs. 12,009.19 Lakhs were withheld / deducted by Government of Rajasthan under Bhamashah Health Insurance Scheme towards rejection of claims under the scheme and related matters. As per meeting held on August 04, 2020 between the Company and Government of Rajasthan, it was agreed to adjust the amount of Rs. 6,533.23 Lakhs against the outstanding claims payable by the Company to respective claimants/ hospitals under the scheme. During the year ended March 31, 2021, out of total amount of Rs. 6,533.23 Lakhs an amount of Rs. 6,308.68 Lakhs has been adjusted against the outstanding claims payable by the Company to respective claimants/ hospitals and the remaining Rs.224.55 Lakhs withheld premium has also been adjusted against claims payable under BSBY during the FY 2021-22. The remaining amount of Rs. 5,475.96 Lakhs have been provided for and charged to revenue account during the year ended March 31, 2021.

b) An amount of Rs. 3,970.84 Lakhs was receivable as subsidy from Government of Karnataka under Rastriya Shawastya Bima Yojana Scheme. During the year ended March 31, 2021, the Company has made provision for doubtful debts amounting to Rs. 3,099.16 Lakhs and charged to revenue account. The remaining amount of Rs. 871.68 Lakhs will be adjusted against the outstanding claims payable by Company to respective claimants/ hospitals under the said scheme.

c) An amount of Rs. 1,675.44 lakhs were receivable as subsidy from Government of Arunachal Pradesh under Arunachal Pradesh Chief Minister Universal Health Insurance Scheme. In financial year 2020-21, the Company had made provision for doubtful debts amounting to Rs. 1,675.44 lakhs and charged to revenue account.

25. Expense of Management (EOM):

As per the IRDAI (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations 2016, expense of management (EOM) in respect of various business segments shall not exceed the specified percentage of its gross written premium in India during the previous year.

In case of Government Health Scheme, actual EOM has exceeded the allowable limit as specified in above IRDAI Regulation by Rs. 7,330.81 Lakhs, due to provision made of Rs. 10,250.56 Lakhs during the year ended March 31, 2021 towards Government subsidy receivables from various State Governments (Refer Note No 24 of Schedule 16 B). The Company has disclosed this excess EOM as “Contribution from shareholders'' funds towards excess EOM” in revenue account and as “Contribution to policyholders Funds towards excess EOM” in profit and loss account. The overall limit for Health segment (consisting of retail, corporate and Government) was within the prescribed limit and without this provision, the EOM under Government business would also have been within the prescribed limits.

26. Internal Controls:

The Company has a fairly adequate internal control and appropriate validations in the system. Stress is being given to strengthen the internal control in the area of Reinsurance accounts. Improvements have been made in the modules of Reinsurance accounts and FAC Inwards through RAMS software. The Company is in the continuous process of further strengthening internal controls, by bringing more controls and validation in system.

27. Fraud Monitoring Cell:

The Company has a vigilance department which monitors matters related to employees and the external frauds reported are monitored by Fraud Monitoring Cell. As per the assessment made by the Cell, there were no matters related to external frauds reported during the year, which required any disclosure or adjustments to the standalone financial statements of the Company except:

a) In Digital Hub third-party frauds has been detected whereby certain third parties/insured have committed offences/ fraud by modifying the policies issued by the digital hub. The Company identified 17,261 policies in which various offences and alterations were detected. The Company has filed FIR in the matter and appointed an advocate to advice the branch on legal recourse available for the same. In the view of management this requires no adjustments to the standalone financial statement as the said fraud has no material financial impact.

b) In Chennai RO, two agents Tiruvallur Branch and Sriperumbudar Branch misused the digital facility in their agent portal, where they issued two-wheeler policies and subsequently altered the policy through pdf editor to commercial vehicle. These agents have been blocked and their IRDAI license has been blacklisted. Currently the investigation in the said matter is ongoing and no financial impact has been ascertained on the standalone financial statements.

28. a) 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 lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

29. The Company has considered the impact of COVID-19 outbreak in the preparation of these standalone financial statements for the year ended March 31, 2022, after assessing the trends and information available from various sources. While the Company does not expect any material impact to arise due to pandemic, the actual impact may differ from our assessment as at the date of approval of these standalone financial statements due to the uncertainties related to the pandemic and other variables. Further the impact assessment does not indicate any adverse impact on the solvency of the Company.

30. The Code on Social Security, 2020 (“Code”) relating to employee benefits during the employment and post-employment benefits has been published in the Gazette of India on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified, and the Code becomes effective.

31. Proposed Dividend for current year: The Board of Directors of the Company proposed a final dividend of Rs. 4,944.00 lakhs being 6% of the Paid-up share Capital of the Company, subject to the approval of the members at the ensuing Annual General meeting. In terms of Revised Accounting Standard (AS) 4, Contingencies and events occurring after the Balance sheet date as notified by the Ministry of Corporate affairs through the amendments to the Companies (Accounting Standard) Rules, 2016 dated March 30, 2016, the Company has not accounted for proposed dividend as liability as at March 31,2022.

32. Previous year figures have been regrouped / rearranged, wherever necessary.

---

Mar 31, 2021

e) Short-term Investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on March 31, 2021, they have been shown under long-term investments, as their realisability is unascertainable. Necessary provision, wherever required, has been made.

f) i) The Company has equity investments in IL & FS Transportation Networks Limited with book value Rs. 1,784.15

lakhs as on March 31, 2021. During the year ended March 31, 2021, the company has written down the equity investment to Rs.1/- as a result of net worth erosion of the underlying investments which is in line with the Company''s accounting policy.

ii) The Company has made additional provision in respect of following debentures securities as per IRDAI norms or as considered appropriate by the management, whichever is higher:

a. Debenture of Rs. 29,031.28 lakhs of Reliance Capital Limited as on March 31, 2021, the Company has made additional provision of Rs. 20,321.89 lakhs during the year ended March 31, 2021. The total provision against the said debentures stands at Rs. 29,031.28 lakhs as on March 31, 2021.

b. Debenture of Rs. 7,484.18 lakhs of Dewan Housing Finance Corporation Limited as on March 31, 2021, the Company has made additional provision of Rs. 3,742.09 lakhs during the year ended March 31, 2021. The total provision against the said debentures stands at Rs. 7,484.18 lakhs as on March 31, 2021.

c. Debenture of Rs. 11,497.14 lakhs of Reliance Home Finance Limited as on March 31, 2021, the Company has made additional provision of Rs. 8,048.00 lakhs during the year ended March 31, 2021. The total provision against the said debentures stands at Rs. 11,497.14 lakhs as on March 31, 2021.

d. Debenture of Rs. 4,818.02 lakhs of Jorabat Shillong Expressway Limited as on March 31, 2021, the Company has made additional provision of Rs. 481.80 Lakhs during the year ended March 31, 2021. The total provision against the said debentures stands at Rs. 1,445.41 lakhs as on March 31, 2021.

Reinsurance, Coinsurance, Inter Office and PMFBY Balances:

a) The balance appearing in the amount due to/ due from persons or bodies carrying on insurance business including

reinsurance business except terrorism Pool and Nuclear Pool with GIC Re are subject to confirmation/ reconciliation and consequential adjustments if any. These balances include Rs. 3,89,076.12 lakhs (Net) Dr. (P.Y. Rs. 2,34,008.81 lakhs Net Dr.) comprising of debit balances of Rs. 6,29,811.49 lakhs (P.Y. Rs. 5,00,248.62 lakhs) and credit balances of Rs. 2,40,735.37 lakhs (P.Y. Rs. 2,66,239.81 lakhs) as per general ledger against which party-wise balances in the records indicate (Dr.) of Rs. 5,45,899.46 lakhs (P.Y. Rs. 4,94,463.26 lakhs Dr.) relating to 948 (P.Y. 903) parties and (Cr.) of Rs.1,56,823.34 lakhs (P.Y. Rs. 2,60,454.45 lakhs) relating to 872 (PY 896) parties.

Precise gross debit and gross credit balances against each of such parties and age-wise analysis of these balances are also being compiled. These balances include old cases including migration differences for which supporting records are being identified and necessary action is being taken, the Impact of the above, if any on the standalone financial statements are unascertainable. The company has maintained a provision of Rs. 14,952.04 Lakhs (P.Y. Rs. 12,414.56 lakhs) up to March 31, 2021 towards doubtful debts as a prudent measure.

b) Reconciliation and settlement of Coinsurance balances were carried out across all offices throughout the year which resulted in settlement and reduction of balances. Importance was given to clear old balances and out of the total Rs. 6,59,547.96 Lakhs (P.Y. Rs. 9,52,714.94 Lakhs) settled during the year, Rs. 3,19,073.82 Lakhs (PSUs Rs. 1,94,800.18 Lakhs and Private Rs. 1,24,273.64 Lakhs) were related to more than one-year balance. This has considerably reduced the old balances.

The PSUs covered 58% of settlements and the private companies at 42%.

The Company will continue to focus on clearing old balances in 2021-22. Confirmation of Coinsurance balances is obtained by most of our offices and reconciliation and settlement of remaining balances will be continued during 202122. During the year ended March 31, 2021, the Company has made a provision of Rs. 2,343.37 Lakhs (P.Y. Rs. 302.61 Lakhs) for the identified unreconciled Coinsurance balances against total net Coinsurance receivables of Rs. 2,03,302.54 Lakhs (P.Y. Rs. 2,60,664.03 Lakhs).

The reconciliation of various accounts relating to inter-office accounts of domestic and foreign operations amounting to Rs. 28,398.03 lakhs (Net Debit) (P.Y. Rs. 28,427.48 - Net Debit), Control Accounts, Reinsurance recovery control account, loans and advances given to employees is under progress. The impact of the above, if any, on the standalone financial statements are unascertainable.

In view of various accounts being reconciled and balances under confirmation, the effect of such pending reconciliation on compliance of tax laws has been ensured to the extent of available information and necessary adjustments / payments of any liability arising out of such reconciliation is to be done in due course.

An amount of Rs. 1,219.03 Lakhs (P.Y. Rs. 133.35 Lakhs) has been received in the bank accounts of the Nodal office of the Company in the State of Tamil Nadu towards farmers share of premium under PMFBY. The Company is in process of reconciliation of enrolment data and premium data as per the Government portal in respect of this amount received for the crop year 2017-18 and 2018-19. These could not be accounted by the Company due to lack of various details or improper details received. These are being reconciled with the respective Banks and appropriate action will be taken accordingly.

In respect of claims pertaining to PMFBY, certified yield data is not available for the crop year 2019-20 for the state of Madhya Pradesh for rabi crop season. In the current year the Company has only incoming coinsurance business for PMFBY with Agriculture Insurance Company of India Limited (AICL), yield data for current year has not been provided by the AICL and therefore precise amount of claims liability in terms of actual yield and claims admissible is yet to be received. Hence the provision for outstanding claims has been made based on management estimates of ultimate loss and is included under IBNR/IBNER assessed by the appointed actuary. Necessary adjustments relating to the above are to be carried out in due course.

). Bhavishya Arogya Scheme: The Company has under one of its old run-off schemes namely Bhavishya Arogya Scheme received premium in prior year amounting to Rs. 4,037.86 Lakhs which have been recognised as premium during the year ended March 31, 2021 in revenue account. Due to non-availability of details with respect to claims pay out pattern under the said Scheme, the Company has made provision for claims liability equivalent to premium amounting to Rs. 4,037.86 Lakhs in revenue account as IBNR provision for the year ended March 31, 2021. It shall review the claim provisioning in subsequent periods on actual details being available with respect to claims pay out pattern.

17. Corporate Social Responsibilities (CSR):

As per Section 135 of the Companies Act, 2013 (the Act), the Company was required to spend an amount of Rs. 3,532.00 lakhs (PY Rs. 3,205.28 lakhs) for the financial year 2020-21 towards CSR.

The charge for the year to profit and loss account on account of CSR amounting to Rs. 4,529.91 lakhs (PY Rs. 2,260.32 lakhs) consists of following:

a) An amount of Rs. 1,745.21 lakhs (P.Y. Rs. 2,260.32 lakhs) has been spent. The CSR expenditure for the current year has been spent through payment towards PM Cares Fund amounting to Rs. 1,500.00 lakhs and the balance amount of Rs. 245.21 lakhs through implementing agencies.

The balance unspent amount for the current year ended March 31, 2021 of Rs. 1,786.79 lakhs have been provided in the books. The said unspent amount has been paid to PM CARES Fund in May 2021, which is in line with amendment made to the Rules of CSR vide notification no. GSR 40(E) dated January 22, 2021 by the Ministry of Companies Affair.

b) The management of the Company has also decided, in addition to the amendment made in CSR rules of the Act, to make provision for the unspent ongoing CSR projects of all the earlier years amounting to Rs. 1,077.94 lakhs, which has been transferred to a separate Unspent CSR Bank Account in April 2021. This amount of Rs. 1,077.94 Lakhs includes liability of Rs. 80.03 lakhs which was paid in financial year 2019-20 to an implementing agency but the said amount was returned by the implementing agency in current year as it was unable to spend the amount owing to protracted lockdown in the light of COVID Pandemic, for the intended purpose as specified in Schedule VII CSR activities.

18. Books maintained on Calendar year: The accounts incorporate Audited accounts of branches in Fiji and Thailand which are prepared on calendar year basis as per the requirement of local laws. There are no material changes for the period January 2021 to March 2021.

19. Unaudited accounts of Foreign branches: The accounts of 2 run-off Agencies (Colombo and Saudi Arabia) and one representative office at Myanmar have been incorporated on the basis of unaudited accounts.

20. Analysis of Unclaimed amounts of Policyholders: As required IRDAI circular no. IRDA/F&I/CIR/CMP/174/11/2011 dated 14.11.2010, age-wise analysis of unclaimed amount of the policyholders amounting to Rs. 18,319.61 Lakhs (P.Y. Rs. 18,300.43 lakhs) at the year ended March 31, 2021 representing the excess premium collected, refund premium and the amount lying in stale cheque accounts and unclaimed amount towards claim is as under:

22. Liability under Micro, Small and Medium Enterprise Development Act, 2006:

The Company has initiated the process of capturing the data relating to enterprises which have been providing goods and services to the Company, falling within the purview of Micro, Small and Medium Enterprises Development Act, 2006, in the accounting system. Pending system augmentation, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at March 31, 2021 has not been made in the standalone financial statements. In view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

Note 1 : The Company had paid settlement fees of Rs. 62.69 Lakhs to SEBI in 2019-20 on account of failure to comply with the disclosure norms which required reporting to SEBI in respect of sale of equity shares of Axis Bank wherein the Company is promoter shareholder. As per the directions received from IRDAI vide their letter Ref: 467/F&A(NL)/COM/ GIC-RE/2020-21/P2/288 dated December 04, 2020, the Company was directed to disclose the said settlement amount as penalty. In compliance with the said directions, the Company is disclosing the same in the current year.

Note 2 : The Company received an order from Competition Commission of India (CCI) imposing a penalty of Rs. 25,107.00 lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of Rs. 20.00 lakhs as against Rs. 25,107.00 lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017.The case is not yet listed for hearing as on March 31, 2021.

Note 3 : Reserve Bank of India imposed penalty of Rs 0.21 Lakhs on account of shortfall in Securities segments in respect of Security Pay-out in Triparty Repo transactions of April 21, 2020, which was paid by the Company during the year.

Note 4 : BSE and NSE imposed penalty of Rs 5.31 Lakhs each on May 17, 2021 for non-compliance with Regulation 17(1) of SEBI(Listing Obligations and Disclosures Requirements), 2015 pertaining to the composition of the Board including failure to appoint woman director. The Company has appealed for waiver of the same, as the non-compliance is due to delay in appointment of director which is solely dependent upon Government of India.

24. Amount receivable under various State Government Health Insurance Schemes:

a) An amount of Rs. 12,009.19 lakhs was withheld / deducted by Government of Rajasthan under Bhamashah Health Insurance Scheme towards rejection of claims under the scheme and related matters. As per meeting held on August 04, 2020 between the Company and Government of Rajasthan, it was agreed to adjust the amount of Rs. 6,533.23 lakhs against the outstanding claims payable by the Company to respective claimants/ hospitals under the scheme. During the year ended March 31, 2021, out of total amount of Rs. 6,533.23 lakhs an amount of Rs. 6,308.68 lakhs has been adjusted against the outstanding claims payable by the Company to respective claimants/ hospitals and the balance amount of Rs. 224.55 lakhs shall be adjusted against unsettled claims in subsequent periods. The remaining amount of Rs. 5,475.96 lakhs has been provided for and charged to revenue account during the year ended March 31, 2021.

b) An amount of Rs. 3,970.84 lakhs was receivable as subsidy from Government of Karnataka under Rastriya Shawastya Bima Yojana Scheme. During the year ended March 31, 2021, the Company has made provision for doubtful debts amounting to Rs. 3,099.16 lakhs and charged to revenue account. The remaining amount of Rs. 871.68 lakhs will be adjusted against the outstanding claims payable by Company to respective claimants/ hospitals under the said scheme.

c) An amount of Rs. 1,675.44 lakhs was receivable as subsidy from Government of Arunachal Pradesh under Arunachal Pradesh Chief Minister Universal Health Insurance Scheme. During the year ended March 31, 2021, the Company has made provision for doubtful debts amounting to Rs. 1,675.44 lakhs and charged to revenue account.

25. Expense of Management (EOM): As per the IRDAI (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations 2016, expense of management in respect of various business segments shall not exceed the specified percentage of its gross written premium in India during the year.

In case of Government Health Scheme, actual EOM has exceeded the allowable limit as specified in above IRDAI Regulation by Rs. 7,330.81 Lakhs, due to provision made of Rs. 10,250.56 Lakhs during the year towards Government subsidy receivables from various State Governments (refer note no. 24 of Schedule 16B). The Company has disclosed this excess EOM as “Contribution from shareholders funds towards excess EOM” in revenue account and as “Contribution to policyholders Funds towards excess EOM” in profit and loss account. The overall limit for Health segment (consisting of retail, corporate and Government) is within the prescribed limit and without this provision, the EOM under Government business would also have been within the prescribed limits.

26. Internal Controls:

The Company is in the process of further strengthening internal controls and internal audit specially in area of data input and validation in software relating to Reinsurance accounts, PMFBY and other Government sponsored Health schemes to ensure the compliance of laid down operational guidelines.

27. Fraud Monitoring Cell: The Company has a fraud monitoring cell which monitors the external frauds reported to the Company. As per the assessment made by the Cell, there were no matters related to external frauds reported during the year, which required any adjustments to the standalone financial statements of the Company. Matters related to employees of the Company are dealt with by the vigilance department. In the opinion of the management there were no such matters that came to notice which required either disclosure or adjustments to the standalone financial statements of the company except in Bhopal branch where a third-party fraud of Rs. 167.00 lakhs has been detected by the company during the year and criminal proceedings is on, this requires no adjustments to the standalone financial statement as the said fraud has no financial implication on the company.

28. The Company has considered the impact of COVID-19 outbreak in the preparation of these standalone financial statements for the year ended March 31, 2021, after assessing the trends and information available from various sources. While, the Company does not expect any material impact to arise due to pandemic, the actual impact may differ from our assessment as at the date of approval of these standalone financial statements due to the uncertainties related to the pandemic and other variables. Further the impact assessment does not indicate any adverse impact on the solvency of the Company.

29. The Code on Social Security, 2020 (“Code”) relating to employee benefits during the employment and post-employment benefits has been published in the Gazette of India on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified and the Code becomes effective.

30. Previous year figures have been regrouped / rearranged, wherever necessary.

20 Investment income (Net of Expenses) is apportioned between Revenue Accounts and Profit and Loss account in proportion to the balance in the Shareholders'' funds and Policyholders'' funds at the beginning of the year. The same is further apportioned to fire, marine and miscellaneous Revenue Accounts in proportion to the technical reserve balance at the beginning of the year.

21 The UPR at a revenue segment level was found to be sufficient to cover the expected claims cost as certified by the Appointed Actuary and the claim related expenses as estimated by the management . Hence no premium deficiency reserve is required to be provided.

---

Mar 31, 2018

1 A. NOTES FORMING PART OF FINANCIAL STATEMENTS AS ON MARCH 31, 2018

1. The accounts incorporate Audited accounts of Branches in Fiji, Thailand and unaudited accounts of Canada (run off) which are prepared on calendar year basis as per the requirement of local laws. There are no material changes for the quarter January 2018 to March 2018. The accounts of 2 runoff Agencies (Colombo and Saudi Arabia) and one representative office at Myanmar have been incorporated on the basis of unaudited accounts.

2. Land include book value Rs.124.97 Lakhs (P.Y. book value Rs.124.97 Lakhs) for which deed of conveyance yet to be executed and lease deed expired is Rs.118.44 lakhs (P.Y. Rs.118.44 lakhs). Building includes book value Rs.2066.95 lakhs (P.Y. Rs.2066.95 lakhs) where registration formalities are yet to be completed / title deeds are not presently available. One property with a book value of Rs.3.42 lakhs (P.Y. Rs.3.42 lakhs) is in the possession of the company but occupied by inherent tenants. Twenty-nine properties with total book value of Rs.163.61 lakhs (P.Y. Rs.163.61 lakhs) are yet to be registered in the name of the company. Three Properties with book value of Rs.332.48 lakhs (Previous Year NIL) are received from Tariff Advisory Committee and the registration formalities are pending.

3. In accordance with the approval received from IRDAI, unearned premium reserve (UPR) in respect of domestic business towards segments other than Marine hull, has been computed on the basis of 1/365th method on the unexpired period of respective policies. The company is in the process of implementing systems and procedures to implement the IRDAI guidelines regarding following the 1/365 method in case of Foreign business and therefore the impact of pending compliance is presently not ascertainable. Systems and procedures in domestic business in few segments are also being strengthened to compute the UPR based on data input in the accounting systems of the company. In the opinion of the management the impact of pending compliances is not expected to be material.

4. As certified by the Custodian, securities are held by the Company as on March 31, 2018 variations and other differences which include excess of market value as per the custodian as compared to books amounting to Rs.412.21 lakhs are being reconciled, while shortages have been provided for. In the opinion of the management, these are not expected to have a material impact on the state of affairs of the Company.

5. (a) Provision for standard assets @ 0.40% amounting to Rs.3715.15lakhs (P.Y. Rs.3730.22 lakhs) has been made as per Insurance Regulatory and Development Authority guidelines on (i) Term Loan (PFPS/DTL), (ii) Debentures, (iii) Infrastructure Investments, (iv) Bonds/Debentures of HUDCO, (v) Bonds/Debentures of Institutions accredited to NHB and (vi) Govt. Guaranteed Bonds/ Securities (vii) Housing and Firefighting Loans to State Governments (Viii) Debtors.

(b) The amount of total corporate debt/loans etc. restructured under various categories are being compiled during the year, the Company has undertaken restructuring as under:

(c) Details of Non Performing Assets (NPA).

i) Details of Non Performing Assets (NPA)

6. Short-term Investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on March 31, 2018, they have been shown under long-term investments, as their realizability is unascertainable. However, necessary provision, wherever required, has been made.

7. As required IRDAI circular no. IRDA/F&I/CIR/CMP/174/11/2011 dated 14.11.2010, age-wise analysis of unclaimed amount of the policyholders amounting to Rs.11731.51 lakhs (P.Y. Rs.13875.41 lakhs) at the year ended March 31, 2018 representing the excess premium collected, refund premium and the amount lying in stale cheque accounts and unclaimed amount towards claim is as under:

Further as per the IRDA circular no IRDA/F&A/CIR/CPM/134/07/2015, Company has invested the above said total amount of Rs.11731.51 lakhs (P.Y. Rs.13875.41 lakhs) in fixed deposit and interest credited of Rs.781.40 lakhs (P.Y. Rs.0.20 lakhs) on such fixed deposit has been allocated to the fund amount.

8. a) Prior period items have been included in the respective heads amounting to Rs.618.08(Debit) and Rs.2585.30 (credit) [P.Y. Rs.223.12 lakhs (Debit)] consisting of the following: -

b) Old credit balances written back in the Profit & Loss account includes Rs.4008.45 lakhs [P.Y Rs.1298.16 lakhs (Debit)] and credit of Rs.13231.00 lakhs [P.Y. Rs.6121.48 lakhs (Credit) based on information received from various offices and as compiled by the Management.

9. Disclosure as required by Accounting Standards (AS) :

A. Related party disclosures as per Accounting Standard 18

1) Company’s related parties

a) Subsidiaries:

i) The New India Assurance Co. (T & T) Ltd. - Port of Spain, Trinidad & Tobago.

ii) The New India Assurance Co. (S.L.) Ltd. - Free Town, Sierra Leone.

iii) Prestige Assurance Plc. - Lagos, Nigeria

b) Associates:

i) India International Insurance Pte. Ltd., Singapore.

ii) Health Insurance TPA of India Ltd., Mumbai, India

C. Taxation:

Income Tax:

i. Provision for Tax - Current Tax shown in Profit & Loss Account includes Rs.3854.94 lakhs (P.Y. Rs.1039.72 lakhs) relating to foreign taxes.

ii. The Income Tax Assessments of the Company have been completed up to assessment year 2015-16. Major disputed demands are in respect of profit on sale of investment, expenses paid to Auto tie-up dealers and related exemptions from tax liability. Based on the decisions of the appellate authority, the interpretations of the relevant provisions, the Management is of the opinion that the demands are likely to be either deleted or substantially reduced and accordingly no provisions have been made for the same. A demand of Rs.45531.97 lakhs was raised for the Assessment year 2015-16.

iii. Deferred Taxes:

The major components of temporary differences resulting into deferred tax assets are as under:

Notes:

(1) A sum of Rs.923.80 lakhs (Previous year increase of Rs.565.10 lakhs) has been debited to the Profit & Loss Account on account of decrease in deferred assets during the year.

(2) On prudence basis recognition of deferred tax asset on unabsorbed depreciation and carry forward losses has not been given effect in the books of account.

(3) Above deferred tax asset does not include impact of deferred tax in respect of operations of foreign branches.

(4) The company continues to recognise the deferred tax asset as hitherto, as in the opinion of the management there are sufficient evidences to establish the virtual certainty of realisation of the DTA from the future taxable profits.

D. Accounting Standard 15 - Employee Benefits

The details of employee benefits for the period on account of gratuity, superannuation which is funded defined employee benefit plans and encashment which is an unfunded defined benefit plan are as under.

E. Accounting for Lease (AS-19)

The Company’s Office Premises and Residential flats for employees are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals amounting to Rs.13632.24 lakhs (P.Y. Rs.11313.03 lakhs) in respect of obligation under operating lease are charged to Revenue Account.

F: Impairment of Assets (AS-28)

During the year, the Company has reviewed its fixed assets for impairment. In the opinion of the management no provision for impairment loss is considered necessary. However, impairment assessment as required by AS-28 would be done in due course.

10. a) With the amendment in the payment of Gratuity Act, 2018, the limit of payment of gratuity is enhanced from Rs.10 lakhs to Rs.20 lakhs with effect from March 28, 2018, resulting in to additional liability. In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire additional liability of Rs.33752.23 Lakhs for gratuity is required to be charged to the Profit & Loss Account. However, vide circular communications ref IRDA/F&A/GNA/LR/002/2018-19/23 dated 01/05/2018, IRDAI has permitted the amortization of expenditure relating to additional liability towards gratuity over a period of five years commencing from FY 2017-18. Accordingly the company has recognized the additional liability and an amount of Rs.6750.45 lakhs is charged to the revenue in the current year and the balance amount remaining to be amortized in next years is Rs.27001.78 lakhs.

b) The Pension Scheme 1995 has been extended to PSU officers and staff members who joined until 31.03.2010, by virtue of the Gazette Notification no. 233(E), 234(E) and 235(E) dated 23.01.2016, the incremental liability towards pension arising out of the above extension has been arrived at Rs.1727.00 lakhs based on actuarial valuation.

In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire amount of Rs.1727.00 lakhs for pension is required to be charged to the Profit &Loss Account. However IRDA vide Circular ref IRDA/F&A/CIR/ACTS/077/04/2016 dated 18.04.2016 has permitted the amortization of expenditure relating to the additional liability over a period of five years commencing from FY 2015-16 and accordingly an amount of Rs.345.40 lakhs is charged to the revenue in the current year and balance amount remaining to be amortized in next two years is Rs.690.80 lakhs for pension.

11. The management is currently in the process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at March 31, 2018 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

12. “Foreign Exchange Reserve Account” is increased by Rs.14584.04 Lakhs (Credit) due to depreciation of foreign currency under the following heads (P. Y. Rs.19047.08 Lakhs (Debit) consisting of the following.

13. Penalty

As per IRDAI Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of the penalty imposed by various regulators and Government authorities during the year:

Note: The Company received an order from Competition Commission of India imposing a penalty of Rs.25107 lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of Rs.20 lakhs as against Rs.25107 lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017.

14. During the year the Company had fully reversed the Equalization Reserve in respect of London Branch which was required by the UK Regulations for the time being in force. The same is now not required to be maintained by the Regulation. The closing balance as at the end of 2016-17 stood at Rs.8900.18 lakhs (GBP 11 million).

Further, in accordance with Oman Insurance Company Law, company has created contingency reserve for claims for Muscat agency for 5 million Omani Riyal. The reserve stood at Rs.8463.64 lakhs as on 31.03.2018 due to currency fluctuation.

15. a) The balance appearing in the amount due to/ due from persons or bodies carrying on insurance business including reinsurance business, terrorism Pool and Nuclear Pool with GIC Re, are subject to confirmation/ reconciliation and consequential adjustments if any. These balances include Rs.200927.19 lakhs (Net) Dr. comprising of debit balances of Rs.435682.93 lakhs and credit balances of Rs.234755.73 lakhs against which party-wise balances in the records indicate (Dr.) of Rs.329652.55 lakhs relating to 1004 parties and (cr.) of Rs.128725.35 lakhs relating to 877 parties. Precise gross debit and gross credit balances against each of such parties and age-wise analysis of these balances are also being compiled. These balances include old cases including migration differences which supporting records are being identified and necessary action is being taken. The impact of the above, if any, on the financial statements are unascertainable. However the company has maintained a provision of Rs.10414.56 Lakhs up-to March 31, 2018 towards doubtful debts as a prudent measure.

b) The company has continued to recognize Facultative inward reinsurance premium in cases where the premium payment warranty period has expired and the company has continued to run the risk during the year. However the receivables on this account amounting to Rs.708.27 lakhs are subject to confirmation and subsequent adjustments if any required shall be carried out in due course.

c) In case of Co-insurance balances, the reconciliation and settlement process to clear the balances is in progress, the Company has continued its exercise of reconciliation and settlement with other Companies and have reduced the net receivable balances without PMFBY (Pradhan Mantri Fasal Bima Yojna) from Rs.14539 lakhs (March 2017) to Rs.3313 lakhs as at March 31, 2018. In case of balances with PSUs, while the receivables have been brought down by Rs.20939 lakhs during 2017-18 as compared to 2016-17, the payable balances in respect of PSUs have also been brought down by Rs.8397 lakhs during 2017-18 as compared to 2016-17.

During the year 2017-18, the Company has settled the receivable balances of Rs.71842 lakhs and payable balances of Rs.105971 lakhs from the Corporate office as a special drive apart from the settlements at operating offices level. As on March 31, 2018, there is a net Credit balance of Rs.48904.50 lakhs with PMFBY comprising of Rs.82898.89 lakhs (Dr) and Rs.131804.39 lakhs (Cr); and net debit balance of Rs.3312.92 lakhs with other than PMFBY comprising of Rs.19520.38 lakhs (Dr) and Rs.16207.45 lakhs (Cr). The net balance outstanding as on March 31, 2017 were Rs.35694.27 lakhs (Dr) with PMFBY and Rs.14538.99 lakhs (Dr) without PMFBY.

d) The reconciliation of various accounts relating to inter-office accounts related to domestic and foreign operations amounting to Rs.43332.42 lakhs (Debit), (P.Y. Rs.25192.25 lakhs (Debit)), Control Accounts, treaty suspense account old balances appearing in legacy software, sundries and suspense, few Bank Accounts, loans, other assets and other liabilities etc. is under progress. The impact of the above, if any, on the financial statements are unascertainable.

e) In case of Fasal Bima Yojna, Enrolment data and premium data as per Banks is to be reconciled with data as per the Central/ State Government portal. Accounting of premium as well as reinsurance accounts, has been done based on portal data after giving effect of reconcilable items. Since No claims have been reported and no actual yield data is available relating to the year 2017-18 , provision for outstanding claims has been made based on IBNR claims as assessed by the Actuary. Necessary adjustments relating to the above are to be carried out in due course.

f) In view of various accounts being reconciled and balances under confirmation, the effect of such pending reconciliation on compliance of various provisions relating to TDS, service tax and GST and interest thereon has been ensured to the extent of available information and necessary adjustments /payments of any liability arising out of such reconciliation is to be done in due course.

g) The company has been undertaking restatements of monetary assets and liabilities denominated in Foreign currencies in accordance with the accounting policy followed except for the balances in treaty suspense due to absence of adequate details/reconciliation. The effect of such restatement on the balances of other debtors/creditors which are to be reconciled and confirmed is to be ascertained in due course.

16. Reinsurance acceptance transactions pertaining to the year have been booked for advices received up to April 13, 2018.

17. Receipts & Payments Account / (Cash Flow Statement) have been drawn under “Direct Method” as required by Part I of Schedule B of the regulation. However, the same is subject to reconciliation of various inter office and other accounts including few Bank Accounts.

18. The company is in the process of updating the fixed asset register with reference to full particulars, quantitative details and location thereof. Further, physical verification of fixed assets in respect of some locations is in progress.

19. The company at its Curacao Branch has a receivable from the agent amounting to Nafls 7669884 equivalent to Rs.2800.26 lakhs as at March 31, 2018 out of which an amount equivalent to Nafls 5596584 Equivalent to Rs.2043.30 lakhs is due for more than 90 days. The company has been taking efforts to recover the amount from the agent and is hopeful of recovery and signed an agreement in this regard. There is no collateral in place. As a prudent measure a provision of Nafis. 1380455 equivalent to Rs.504 lakhs as at March 31, 2018 is carried in the accounts

20. The company is in the process of strengthening internal controls and Internal Audit specially in area of data input and validation in soft-wares , Reinsurance accounts, PMFBY and other Government sponsored Health schemes to ensure the compliance of laid down operational guidelines.

21. In accordance with the provisions of the Companies Act, 2013, the Company had to spend an amount of Rs.2281 lakhs for the financial year 2017-18 towards Corporate Social Responsibility. During the year an amount of Rs.1350.87 lakhs has been spent against the total sanction of Rs.1680.10 lakhs. The balance could not be spent as various projects are in the completion stage.

22. Unexpired premium reserve at revenue segment level is found to be sufficient to cover the expected claim cost as certified by the appointed actuary and the claims related expenses as estimated by the management. Hence no premium deficiency reserve is required to be provided during the year.

23. The company has a fraud monitoring cell which monitors the external frauds reported to the company. As per the assessment made by the Cell, there were no matters related to external frauds reported during the year which required any adjustments to the financial statements of the company. Matters related to employees of the company are dealt with by the vigilance department and are kept confidential and not subjected to audit. In the opinion of the management there were no such matters that came to notice which required either disclosure or adjustments to the financial statements of the company.

24. Rs. 2171.34 Lakh has been withheld / deducted by Govt of Rajasthan under Bhamashah Health Insurance Scheme towards rejection of claims under the scheme and related matters, the company has since paid the underlying claims the company is in process of getting the same refunded by the Government of Rajasthan and no provision is required against the same.

25. The Board of Directors at their meeting approved an Interim dividend of 75% during for FY 2017-18 which was duly paid in February 2018. Further a Final dividend of 100% of the paid up capital of the company subject to the approval of the members at the ensuing Annual General Meeting. In terms of revised Accounting Standard (AS) 4 Contingencies and Events occurring after the Balance Sheet date as notified by the Ministry of Corporate Affairs through the amendments to the Companies (Accounting Standard) Rules 2016, the company has not appropriated proposed dividend (including tax) amounting to Rs.49668.78 lakhs from the Profit & Loss Account for the year ended on March 31, 2018.

26. Pursuant to 1553rd Board Meeting held on July 10, 2017 the Board of directors recommended and the same was approved by the shareholders in the Annual General Meeting held on August 2, 2017, the increase in authorised share capital, sub division of shares and issue of bonus equity shares resulting in an increase in authorised numbers of shares from existing 3,000.00 lakhs to 12,000.00 lakhs, increase in issued numbers of shares from 2,000.00 lakhs to 8,000.00 lakhs and decrease in face value of shares from Rs.10 to Rs.5. As a result, the authorised share capital has increased from Rs.30,000.00 lakhs to Rs.60,000.00 lakhs, and the issued share capital has increased from Rs.20,000.00 lakhs to Rs.40,000.00 lakhs. Subsequently in November 2017 the Company concluded its Initial Public Offer of Rs.9,58,582.27 Lakh in the month of November 2017 comprising fresh issue of 240 Lakh equity shares aggregating to Rs.191716.45 lakhs and an offer for share of 960 lakhs equity shares by Promoter, Ministry of Finance, Government of India aggregating to Rs.766865.81 lakhs and the paid up capital has now become Rs.41200.00 lakhs.

27. Previous year figures have been regrouped / rearranged, wherever necessary.

---

Mar 31, 2017

1. Short-term Investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on 31.03.2017, they have been shown under long-term investments, as their reliability is unascertainable. However, necessary provision, wherever required, has been made.

2. There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002:

i) Segmental reporting in respect of Public and Product Liability is not disclosed separately for foreign business.

ii) The provisions against loans Rs,6286.35 Lakhs (PY Rs,6805.12 Lakhs) have been shown in Schedule 14 "Provisions". Consequently, the "Loans" shown in the Schedule 9 have not been reduced to the extent of provisions made against thereof, as required by Part V of Schedule B of the Regulation.

3. As required IRDAI circular no. IRDA/F&I/CIR/CMP/174/11/2011 dated 14.11.2010 age wise analysis of unclaimed amount of the policyholders amounting to Rs, 13875.41 lakhs (PY Rs,14081.18 lakhs) at the year ended March 31,2017 representing the excess premium collected, refund premium and the amount lying in

Further as per the IRDA circular no IRDA/F&A/CIR/CPM/134/07/2015 Company has invested the above said total amount of Rs, 13875.41 lakhs in fixed deposit and interest accrued on such Fixed deposit has been allocated to the fund amount.

4. Disclosure as required by Accounting Standards (AS) :

A. Related party disclosures as per Accounting Standard 1 8

1 . Company’s related parties a) Subsidiaries:

i) The New India Assurance Co. (T & T) Ltd. - Port of Spain, Trinidad & Tobago.

ii) The New India Assurance Co. (S.L.) Ltd. - Free Town, Sierra Leone.

iii) Prestige Assurance Plc. - Nigeria

E . Accounting for Lease( AS-1 9 )

The Company''s Office Premises and Residential flats for employees are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals amounting to Rs, 11313.03 lakhs (PY Rs, 9586.77 lakhs) in respect of obligation under operating lease are charged to Revenue Account.

F. Impairment of Assets( AS-2 8 )

During the year, the Company has reviewed its fixed assets for impairment. In the opinion of the management no provision for impairment loss is considered necessary. However Impairment assessment as required by AS-28 would be done in due course.

5. The pay revision of the officers and employees has been carried out by the Public Sector General Insurance Companies in the year 2015-16 consequent upon the Gazette Notification dated 23.01.2016 issued by the Ministry of Finance. As a result the additional liability of Pension and Gratuity on account of pay revision has been arrived at Rs, 50247.00 lakhs and Rs,13047.00 lakhs respectively as per the actuarial valuation carried out.

In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire additional liability of Rs,50247.00 lakhs for pension and Rs,13047.00 lakhs for gratuity is required to be charged to the Profit & Loss Account. However, vide circular communications ref IRDA/F&A/CIR/ACTS/077/04/2016 dated 18/04/2016 and IRDA/F&A/LR/001/2016/6 dated 19.04.2016,IRDA has permitted the amortization of expenditure relating to additional liability towards gratuity and pension over a period of three years commencing from FY 201516. Accordingly the company has recognized the additional liability and an amount of Rs, 16749.00 lakhs for pension and Rs, 4349.00 lakhs for gratuity is charged to the revenue in the current year and balance amount remaining to be amortized in next year is Rs, 16749.00 lakhs and Rs,4349.00 lakhs for pension and gratuity respectively.

The Pension Scheme 1995 has been extended to PSU officers and staff members who joined until 31.03.2010. By virtue of the Gazette Notification no. 233(E), 234(E) and 235(E) dated 23.01.2016. The incremental liability towards pension arising out of the above extension has been arrived at Rs,1727.00 lakhs based on actuarial valuation.

In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire amount of Rs,1727.00 lakhs for pension is required to be charged to the Profit & Loss Account. However IRDA vide Circular ref IRDA/ F&A/CIR/ACTS/077/04/2016 dated 18.04.2016 has permitted the amortization of expenditure relating to the additional liability over a period of five years commencing from FY 2015-16 and accordingly an amount of Rs, 345.40 lakhs is charged to the revenue in the current year and balance amount remaining to be amortized in next three years is Rs, 1036.20 lakhs for pension.

6. The management is currently in the process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at 31st March 2017 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

Note: The Company received an order from Competition Commission of India imposing a penalty of Rs, 25107 lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of Rs,20 lakhs as against Rs,25107 lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017.

7. At Navsari Divisional Office under Surat Regional Office of the company, transactions comprising unauthorized/illegally authorized claims having been posted in the accounting system and paid, were observed during the year in case of one of the dealers relating to the financial years 2011-12 to 2016-17. As per the investigations carried so far, an amount of Rs, 152.00 lakhs (approx) has been identified to have been excess paid in this respect.The detailed investigations to assess the total amount of such irregularities is in progress and the management has taken appropriate action against the concerned dealer/employees. An amount of Rs, 80.79 lakhs has since been recovered and recovery of balance amount identified is in progress. No provision in this regard has been considered necessary since, in the opinion of the management the excess payments are considered recoverable in full.

8 The Board of Directors at their meeting have proposed a dividend of 155% of the paid up capital of the Company subject to the approval of the members at the ensuing Annual General Meeting. In terms of revised Accounting Standard (AS-4) Contingencies and Events occurring after the Balance Sheet date as notified by the Ministry of Corporate Affairs through the amendments to the Companies (Accounting Standard) Rules 2016, the Company has not appropriated proposed dividend (including tax) amounting to Rs, 37311.92 lakhs from the Profit & Loss Account for the year ended on March 31,2017.

9. Previous year figures have been regrouped/ rearranged, wherever necessary.

10 In compliance of section 197 of the Companies Act 2013, the total managerial remuneration paid to its Directors including Managing Director, Whole Time Directors, and Managers in respect of Financial Year 2016-17, does not exceed 11% of Net Profit of the Company.

11 The Company does not have Real Estate Investment Property.

---

Mar 31, 2009

1. The accounts incorporate audited accounts of Branches in Fiji and Thailand on calendar year basis prepared as per local laws. No material changes have been reported after the finalization of accounts of branches.

2. Buildings include Rs. 308.98 Lakhs (Previous Year Rs.227.36 Lakhs) in respect of which the deeds of conveyance are yet to be executed.

3. a Reinsurers and Coinsurers balances are subject to confirmations / reconciliations and consequential adjustments if any.

b Reinsurance acceptance transactions pertaining to the year with Indian companies have been booked for advices received upto 6th June 2009.

c Some of the inter-office accounts are subject to reconciliations and consequential adjustments if any.

4. As certified by the Custodian, securities are held in the name of the Company as on 31.03.2009. Variations and other differences are under reconciliation and are not expected to have a material impact on the state of affairs of the Company.

5. Certificates of confirmation are awaited for earlier years Foreign Investments amounting to Rs.18.27 lakhs (Previous Year Rs.5.92lakhs). However, the same are fully provided for.

6. a Provision for standard assets @ 0.40% amounting to Rs.1426.41 Lakhs (Previous Year Rs.1533.29Lakhs) has been made as per Insurance Regulatory and Development Authority guidelines on (i) Term Loan (PFPS/DTL/Bridge loans), (ii) Debentures, (iii) Short Term Loans, (iv) Infrastructure Investments, (v) Bonds/Debentures of HUDCO, (vi) Bonds/Debentures of Institutions accredited to NHB and (vii) Loans to HUDCO for Housing (viii) Govt. Guaranteed Bonds/Securities (ix) Housing and Fire fighting Loans to State Governments (x) Other Approved Securities (xi) Sundry Debtors.

7. Short-term Investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on 31.03.2009, they have been shown under long-term investments, as their realisability is unascertainable. However, necessary provision, wherever required, has been made.

8. a There are following cases of non-compliance/contravention of Insurance Regulatory & Development

Authority (Investment) Regulations, 2000 :

i) Return prescribed by Regulation 6 with respect to Compliance Report for exposure of investment have been submitted although not in the prescribed format and the Other Returns as prescribed by Regulation 6 have not been submitted within stipulated time limit as per notification Dt.01/01/2004.

ii) The Company is in the process of improving the system to ensure that the investment exposure at any point of time does not exceed the prescribed limits under Regulation 5. However, there is no case of violation of the prescribed exposure limits.

b There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 :

i) Segmental reporting in respect of Public and Product Liability is not disclosed separately for foreign business.

ii) The provisions against the Investment of Rs.7857.80 Lakhs (Previous Year Rs. 8259.96 Lakhs), loans of Rs.12823.18 Lakhs (Previous Year Rs.13982.23 Lakhs) and Sundry Debtors of Rs.40.51 lakhs (Previous Year Rs.153.46 Lakhs) have been shown in Schedule 14 "Provisions". Consequently, the "Investment", "Loans" and "Advance & Other Assets" shown in the Schedules 8, 9 and 12 respectively have not been reduced to the extent of provisions made against thereof, as required by Part V of Schedule B of the Regulation.

iii) Receipts & Payments Account/(Cash Flow Statement) has been drawn by "Indirect Method" instead of "Direct Method" as required by Part I of Schedule B of the regulation.

9. Investment in term loans, loans to State Government for the purpose of Housing & Fire fighting equipments, investments in Pass Through Certificates (PTC) and balances on account of restructuring/ rescheduling of debts are subject to confirmations and reconciliations. The impact of adjustments if any, arising out of confirmations / reconciliations of such balances on financial statements are unascertainable.

10. Disclosure as required by Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI): -

A Related party disclosures as per Accounting Standard 18

1 Companys related parties

a Subsidiaries

i) The New India Assurance Co. (T & T) Ltd. - Port of Spain, Trinidad & Tobago

ii) The New India Assurance Co. (S.L.) Ltd. - Free Town, Sierra Leone

iii) Prestige Assurance Plc. - Nigeria

b Associates

i) India International Insurance Pvt. Ltd., Singapore

ii) United Insurance Co. Ltd., Jordan

iii) Saudi Indian Company for Co Operative Insurance, Riyadh

c Entities over which control exist

i) The New India Assurance Company (Employees) Pension Fund

ii) The New India Assurance Company Limited Employee Gratuity Fund

iii) The New India Assurance Company Limited Staff Provident Fund

d Key management personnel of the Company

i) Mr. B. Chakrabarti

ii) Mr. N. S. R. Chandra Prasad

iii) Mr. A. R. Sekar

11. During the year, the Company has reviewed its fixed assets for impairment of loss as required by Accounting Standard 28 on impairment of assets. In the opinion of the management no provision for impairment loss is considered necessary.

12. Pre-payment premium received in present value terms on account of restructuring/reduction of interest rates in respect of loans/debentures is spread over the remaining tenure of such loans/debentures. Accordingly Rs.268.08 Lakhs (P.Y Rs.429.77 Lakhs) has been considered as income received in advance and shown in Schedule – 13 Current Liabilities under the head "Others".

13. The management is currently in the process of identifying enterprises which have been provided goods and services to the Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at 31st March 2009 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

14. The Company does not have any dues, which are outstanding for a period exceeding 30 days due to Small scale and ancillary industrial undertakings.

15. Indian Motor Third Party Insurance Pool (IMTPIP)In accordance with the directions of IRDA, the company, together with other insurance companies, participates in the Indian Motor Third Party Insurance Pool (IMTPIP). The IMTPIP is a multilateral reinsurance arrangement, in which all member companies are compulsorily required to participate. The IMTPIP is administered by the General Insurance Corporation Of India (‘GIC). The IMTPIP covers reinsurance of third party risks of specified motor vehicles ("specified risks"). Amounts collected as premium in respect of specified risks are ceded at 100% of such premium, 100% of claims incurred against specified risks ceded being recoverable from the pool.

In accordance with the terms of the agreement, each participant Company, is compulsorily required to share in the revenues, expenses, assets and liabilities of the IMTPIP, including unexpired risks reserve, in the proportion, that the Companys Gross Direct Premium Written in India (GDPI), bears to the total Gross Direct Premium Written in India of all participant companies. The Companys share as specified above, is recorded based on the returns submitted by GIC, under the respective heads. Accordingly, such share has been recorded by the Company, only up to 28th February 2009, the date up to which the return is submitted by GIC.

16. The Company has created the Reserve for Unexpired Risk as at the end of the accounting period based on the 1/365 method in the Health segment as per IRDA circular No.IRDA/F&A/CIR/49/MAR-09 dated March 24, 2009. The said contingency reserve is not available for distribution to Share holders and its utilisation, at any future date would require prior approval of the Authority.

17. Previous year figures have been regrouped wherever required to make the figures comparable with current years figures.

18 All significant accounting policies forming part of the financial statements are disclosed separately.

19 Premium is recognized as income on assumption of the risk. A reserve for unexpired risks is created @ 100% of net premium for marine business and @ 50% of net premium for other classes of business except unexpired risk reserves in Health segment.

20 Operating expenses relating to insurance business are apportioned to the revenue account on the basis of gross direct premium plus reinsurance accepted giving weightage of 75% for marine business and 100% each for fire and miscellaneous business.

21 The historical/weighted average cost of investments in equity shares / venture funds, is Rs.229520.12 lakhs (Previous year Rs.218814.09 Lakhs) and Rs.1231.41 Lakhs (Previous year Rs.1436.59 Lakhs) respectively. However, the historical/weighted average cost in respect of investment in listed equity/ equity related instruments/preference shares, the value of which had impaired on or before 31st March, 2000 is not available with the Company, and hence, the carrying value of the same as on 01.04.2000 is presumed to be the historical/weighted average cost.

22 Computation of managerial remuneration: Being a Government owned Company, the Company is exempted vide notification: GSR 235, dated 31st January 1978 u/s 620 of the Companies Act, 1956.

23 Amortisation of debt securities is done from the date of investment on the basis of actual number of days upto the date of Sale/ Redemption/ 31st March, 2009. While working out amortisation put/ call option is not considered. However, partial redemption if any, is taken into account.

24 a) Unrealised gains / losses arising due to change in the Fair Value of listed equity shares and equity related instruments have been taken to "Fair Value Change Account" and on realisation will be transferred to profit and loss account.

b) Pending realisation, the credit balance in the "Fair Value Change Account" is not available for distribution.

25 The Company does not have Real Estate Investment Property.

26. Interest, Dividends and Rent is apportioned between Revenue Accounts and Profit and Loss account in proportion to the balance in shareholders funds and policyholders funds at the beginning of the year. The same is further apportioned to fire, marine and miscellaneous Revenue Accounts in proportion to the technical reserve balance at the beginning of the year.

---

Mar 31, 2008

1. The accounts incorporate audited accounts of branches in Fiji, Thailand and Kuwait on calendar year basis, prepared as per local laws. No material changes have been reported after the finalization of branches accounts

2. Buildings include Rs. 227.36 Lakhs (Previous Year Rs.313.58 Lakhs) in respect of which the deeds of conveyance are yet to be executed.

3. (a) Reinsurers and Coinsurers balances are subject to confirmations / reconciliations and consequential adjustments.

(b) Reinsurance acceptance transactions pertaining to the year with Indian companies have been booked for advices received upto 26th May 2008.

4. As certified by the Custodian, Securities are held in the name of the Company as on 31.03.2008. Variations and other differences are under reconciliation and are not expected to have a material impact on the state of affairs of the Company.

5. Certificates of confirmation are awaited for earlier years Foreign Investments amounting to Rs5.92 lakhs (Previous Year Rs. 9.32lakhs). However, the same are fully provided for.

6. a) Provision for standard assets @ 0.40% amounting to Rs.1533.29 Lakhs (Previous Year Rs.1371.82Lakhs) has been made as per Insurance Regulatory and Development Authority / Reserve Bank of India guidelines on (i) Term Loan (PFPS/DTL/Bridge loans), (ii) Debentures, (iii) Short Term Loans, (iv) Infrastructure Investments, (v) Bonds/Debentures of HUDCO, (vi) Bonds/Debentures of Institutions accredited to NHB and (vii) Loans to HUDCO for Housing (viii) Govt. Guaranteed Bonds/ Securities (ix) Housing and Fire fighting Loans to State Governments (x) Other Approved Securities

7. Short-term investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on 31.03.2008, they have been shown under long-term investments, as their realisability is unascertainable. However, necessary provision, wherever required, has been made.

8. a) There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Investment) Regulations, 2000:

i) Return prescribed by Regulation 6 with respect to compliance report for exposure of investment have been submitted although not in the prescribed format and the other returns as prescribed by Regulation 6 have not been submitted within stipulated time limit as per notification Dt.1/1/2004.

ii) As the existing system in the Company is not enabling proper calculation of exposure limits as per the requirement of Regulation 5, the Company is in the process of improving the system to ensure that the investment exposure at any point of time does not exceed the prescribed limits.

b) There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002:

i) Segmental reporting in respect of Health Insurance and Public / Product Liability Insurance is not disclosed separately for foreign business.

ii) The provisions against the investment is Rs.8259.96 Lakhs (Previous Year Rs. 8930.00 Lakhs), loans is Rs.13982.23 Lakhs (Previous Year Rs. 14312.09 Lakhs) and Sundry Debtors is Rs.153.46lakhs (Previous Year Rs. 167.87 Lakhs) have been shown in Schedule 14 "Provisions". Consequently, the "Investment", "Loans" and "Advance & Other Assets" shown in the Schedules 8, 9 and 12 respectively have not been reduced to the extent of provisions made against thereof, as required by Part V of Schedule B of the regulation.

iii) Receipts & Payments Account/(Cash Flow Statement) has been drawn by "Indirect Method" instead of "Direct Method" as required by Part I of Schedule B of the regulation.

9. Investment in term loans, loans to state government for the purpose of housing & fire fighting equipments, investments in pass through certificates (PTC) and balances on account of restructuring/rescheduling of debts are subject to confirmations and reconciliations. The impact of adjustments if any, arising out of confirmations / reconciliations of such balances on financial statements are unascertainable.

Further, reconciliations of some of the inter-office accounts are also pending. The impact of adjustments if any, arising out of confirmations / reconciliations of such balances on financial statements are unascertainable.

10. Disclosure as required by Accounting Standards (AS) issued by the Institute of Chartered Accountants o India (ICAI): -

A. Related party disclosures as per Accounting Standard 18

1. Companys Related Parties

(a) Subsidiaries

i) The New India Assurance Co. (T & T) Ltd. - Port of Spain, Trinidad & Tobago

ii) The New India Assurance Co. (S.L.) Ltd. - Free Town, Sierra Leone

iii) Prestige Assurance Plc. - Nigeria

(b) Associates

i) India International Insurance Pvt. Ltd., Singapore

ii) KenIndia Assurance Co. Ltd., Kenya

iii) United Insurance Co. Ltd., Jordan

iv) Saudi Indian Company for Co operative Insurance, Riyadh

(c) Entities over which control exist

i) The New India Assurance Company (Employees) Pension Fund

ii) The New India Assurance Company Limited Employee Gratuity Fund iii) The New India Assurance Company Limited Staff Provident Fund

d) Key Management Personnel of the Company

i) Mr. B. Chakrabarti

ii) Mr. N. S. R. Chandra Prasad

iii) Mr. A. R. Sekar

Provision for Income Tax

In case of London branch provision for tax liability amounting to Rs 958.85 lacs has been accounted. In case of other foreign operations tax liability is accounted on payment basis.

11. During the year, the Company has reviewed its fixed assets for impairment of loss as required by Accounting Standard 28 on impairment of assets. In the opinion of the management no provision for impairment loss is te considered necessary.

12. Pre-payment premium received in present value terms on account of restructuring/reduction of interest rates in respect of loans/debentures is spread over the remaining tenure of such loans/debentures. Accordingly Rs.429.77 Lakhs (P.Y Rs. .668.93 Lakhs) has been considered as income received in advance and shown in Schedule - 13 Current Liabilities under the head "Others".

13 Additional actuarial liability, net of tax benefits, for pension, gratuity and leave encashment on account of Special Voluntary Retirement Scheme during 2003-04 is being amortised over a period of five years as per IRDA guidelines.

14 The management is currently in the process of identifying enterprises which have been provided goods and services to the Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises as at 31st March 2008 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

15 The Company does not have any dues, which are outstanding for a period exceeding 30 days due to small scale and ancillary industrial undertakings.

16 Indian Motor Third Party Insurance Pool (IMTPIP)In accordance with the directions of IRDA, the Company, together with other insurance companies, participates in the Indian Motor Third Party Insurance Pool (IMTPIP). The IMTPIP is a multilateral reinsurance arrangement, in which all member companies are compulsorily required to participate. The IMTPIP is administered by the General Insurance Corporation of India (GIC). The IMTPIP covers reinsurance of third party risks of specified motor vehicles ("Specified risks"). Amounts collected as premium in respect of specified risks are ceded at 100% of such premium, 100% of claims incurred against specified risks ceded being recoverable from the pool.

In accordance with the terms of the agreement, each participant company, is compulsorily required to share in the revenues, expenses, assets and liabilities of the IMTPIP, including unexpired risks reserve, in the proportion that the companys Gross Direct Premium written in India (GDPI), bears to the total GDPI of all participant companies. The Companys share as specified above, is recorded based on the returns submitted by GIC, under the respective heads. Accordingly, such share has been recorded by the Company, only up to 29th February 2008, the date up to which the return is submitted by GIC.

17 Previous year figures have been re-grouped wherever required, to make the figures comparable with current year figures.

18 Foreign Exchange Reserve Account has been depleted by Rs 7841.45 Lakhs due to appreciation of foreign currency under the following heads (Previous Year Rs. 9380.56 Lakhs (Credit)) consisting of the following.

---

Mar 31, 2005

1. The Accounts incorporate audited accounts of Branches in Fiji and Thailand on calendar year basis prepared as per local laws.

2. House Properties for which execution of legal documents is in progress amount to Rs. 533.68 Lakhs (Previous Year Rs. 348.70 Lakhs).

In case of "Carlisle Chambers" property, situated at Colaba, Mumbai, the original lease agreement for 99 years has expired on 30th July, 1997. The leaser M/s. BPT has not renewed the lease and has filed the suit for the eviction. Company has taken necessary steps in consultation with advocate for renewal of the said agreement.

3. (a) Reinsurers balances are subject to confirmation/reconciliation and consequential adjustments.

(b) Reinsurance acceptance transactions pertaining to the year with Indian Companies have been booked for advices received upto 23rd June, 2005.

4. As certified by Custodian, Securities are held in the name of Company as on 31.03.2005. Variations and other differences are under reconciliation and are not expected to have a material impact on the state of affairs of the Company.

5. Certificates of confirmation are awaited for earlier years Foreign Investments amounting to Rs. 27.79 lakhs (Previous year Rs. 27.78 lakhs). However, the same are fully provided for.

6. a) Provision for standard assets @ 0.25% amounting to Rs. 543.78 Lakhs (Previous Year Rs. 420.97 Lakhs) has been made as per Reserve Bank of India guidelines on (i) Term Loan (PFPS/DTL, Bridge Loans), (ii) Debentures, (iii) Short Term Loans, (iv) Infrastructure Investments, (v) Bonds/Debentures of HUDCO, (vi) Bonds/Debentures of Institutions accredited to NHB and (vii) Loans to HUDCO for Housing, (viii) Government Guranteed Bonds/securities.

Short-term investments (Schedule - 8) in debentures and other guaranteed securities include those, which are fully repayable in the next year. As regards those debentures and other guaranteed securities, which have fallen due and remain unpaid as on 31.03.2005, they have been shown under long-term investments, as their readability is unascertainable. However, necessary provision, wherever required, has been made.

a) There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Investment) Regulations, 2000 :

i) Returns prescribed by Regulation 6 with respect to compliance report and exposure of investment have not been submitted and the Other Returns as prescribed by Regulation 6 have not been submitted within stipulated time limit & in prescribed format as per notification dated 1/1/2004.

ii) As the existing system in the Company is not enabling proper calculation of exposure limits as per the requirement of Regulation 5, the Company is in the process of improving the system to ensure that the investment exposure at any point of time does not exceed the prescribed limits.

iii) The reconciliation of investments shown in the books of account and in the custodian/other certificate has not been made as required by Notification dated January, 1 2004.

iv) There have been instances wherein the Company has exceeded the limits for investment in Mutual Funds laid down by Insurance Regulatory & Development Authority vide circular No. Insurance Regulatory & Development Authority/CIR/INV/007/2002-03 dated 26* February, 2003 and letter dated 5lh December 2003. However the investments in Mutual Funds are well within the limits permitted by the Insurance Regulatory and Development Authority at the year end.

b) There are following cases of non-compliance/contravention of Insurance Regulatory & Development Authority (Preparation of Financial Statement and Auditors Report of Insurance Companies) Regulations, 2002 :

i) Segmental reporting in respect of Health Insurance and Public & Product Liability is not disclosed separately;

ii) The provisions against the Investment of Rs. 11441.54 lakhs (Previous Year Rs. 9914.50 lakhs), loans of Rs.13230.40 lakhs (Previous Year Rs. 12974.67 lakhs) and Sundry Debtors of Rs.305.40 lakhs (Previous Year Rs. 59.50 lakhs) have been shown in Schedule 14 "Provisions". Consequently, the "Investment", "Loans" and "Advance & Other Assets" shown in the Schedules 8,9 and 12 respectively have not been reduced to the extent of provisions made against thereof, as required by Part V of Schedule B and

iii) Receipts and Payments Account/ (Cash Flow Statement) has been drawn by "Indirect Method" instead of "Direct Method", as required by Part I of Schedule B.

9. Investment in term loans, loans to state government for the purpose of Housing & Fire Fighting Equipments, investments in Pass Through Certificates (PTC) and balances on account of restructuring/rescheduling of debts are subject to confirmation and reconciliation. Further, reconciliation of some of the inter-office accounts is also pending. The impact of adjustments if any, arising out of confirmation/reconciliation of such balances on financial statements is unascertainable.

(b) Associates

i) India International Insurance Pvt. Ltd.- Singapore ii) Prestige Assurance Pic. - Nigeria iii) Kenindia Assurance Co. Ltd. - Nairobi

(c) Entities over which control exist

i) The New India Assurance Company ( Employees ) Pension Fund ii) The New India Assurance Company Limited Employee Gratuity Fund

d) Key Management Personnel of the Company

i) Mr. Ft. Beri

ii) Mr. A. V. Purushothaman -till 30th May, 2005

iii) Mr. Kumar Bakhru

B. Disclosure as per AS 20-"Earnings Per Share":

i) The Company does not have any outstanding diluted potential equity shares Consequently, the basic and diluted earning per share of the Company remains the sarru

ii) During the year the Company has issued 5,00,00,000 fully paid up equity shares of Rs. 1 each as bonus shares amounting to Rs. 50,00,00,000. Accordingly the basic earning pe share is calculated including the bonus shares. The basic earnings per share for previou financial year has been revised after taking into account the bonus shares.

Accordingly a sum of Rs. 4881.81 lakhs (Previous year Rs. 1375.64 lakhs) has been taken t< income on account of creation of deferred tax asset during the year and shown under provision for taxation in Profit & Loss Account.

12. During the year, the company has reviewed its fixed assets for impairment of loss as required Accounting Standard 28 on impairment of assets. In the opinion of the management no provision impairment loss is considered necessary.

13. During the year pre-payment premium received in present value terms on account of restructurir reduction of interest rates in respect of loans is spread over the remaining tenure of such loan Accordingly Rs. 1248.80 lakhs has been considered as income received in advance and shown Schedule -13 Current liabilities under the head "Others".

14. During the year, the company has made provision of Rs. 51.28 lakhs (Previous year Rs. 388 lakhs) and charged the same to Profit & Loss A/c. towards doubtful debts in respect of long outstanc balances of reinsurers and parties which are liquidated or are in the process of liquidation.

15. During the year, changes in significant accounting policies are as under:

a) During the year, in view of the Accounting Standard (AS) 11. The Effects of Changes in Foreign Exchange Rates" (revised 2003) becoming mandatory w.e.f. 1st April 2004, the company has classified its foreign operations as non integral operations. Accordingly, the assets and liabilities of non monetary items of the non integral foreign operations are also now translated at the closing rate and resulting difference have been credited to Foreign Currency Translation Reserve. Further the exchange gain arising on account of translation of income and expenses items of the non integral foreign operations at the average rate of each quarter of current year and assets and liabilities of monetary items of non integral foreign operations at the closing rate is being accumulated in a foreign currency translation reserve instead of taking to revenue as was done in earlier years. As a result of this change, Fixed Assets are higher by 66.26 lakhs, Investments are higher by Rs. 1640.29 lakhs, Foreign Currency Translation Reserve is higher by Rs. 6171.11 lakhs and profit for the year is lower by Rs. 4464.56 lakhs.

b) Till eariler year, reinsurance acceptance transactions pertaining to the year with foreign companies were booked for advices received upto 31st March of the year. From the current year, advices received upto the date of finalisation of accounts have been booked. The impact of such change is that profit and the reserves and surplus are higher by Rs. 3982.40 lakhs.

16. Additional acturial liability, net of tax benefits, for pension, gratuity and leave encashment on account of Special Voluntary Retirement Scheme during 2003-04 is being amortised over a period of five years as per Insurance Regulatory Development Authority guidelines. Unamortised amount of Rs. 3797.10 lakhs is included in Schedule 15 under the head "Miscellaneous Expenditure". Hence profit for the year and assets are higher by Rs. 3797.10 lakhs.

17. Previous year figures have been re-grouped wherever required, to make the figures comparable with current year figures.