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.

16B. NOTES FORMING PART OF STANDALONE
FINANCIAL STATEMENTS AS ON MARCH 31, 2026

1. Reinsurance Acceptance Transactions:

Reinsurance acceptance transactions pertaining to the
year have been booked for advices received up to April
15, 2026.

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 for 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 2026, 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, 2026 has been determined by
Appointed Actuary, which is in accordance with accepted
actuarial practice and IRDAI regulations in this regard.

5. Change in the accounting policy

a) During the year, the Company has changed its
accounting policy pertaining to accounting of
accretion of discount on government securities,
debt securities and redeemable preference shares
which have been carried out in compliance with the
IRDAI (Actuarial, Finance and Investment Functions
of Insurers) Regulations 2024. Consequently, an
additional amount of '1234 Lakhs and '24801 Lakhs
of income on investment have been recognized
during the quarter and year ended March 31, 2026,
respectively.

b) Further, the Company has also modified its accounting
policy pertaining to accounting of Refund of income
tax wherein it is clarified that interest on realization
basis includes adjustments.

The corresponding previous year figures in respect of
above pertaining to year ended March 31, 2025, are not
comparable since these have not been restated.

6. Taxation:

a) Income Tax: Provision for Tax ' (14345) Lakhs (PY
'1878 Lakhs) shown in Profit and Loss Account
includes '3276 Lakhs (PY '3439 Lakhs) relating to
foreign taxes and reversal of earlier year tax '20303
lakhs (PY '25470 lakhs).

b) The Income Tax Assessments of the Company have
been completed up to assessment year 2023-24.
Major disputed demands are in respect of profit on
sale of investment, IBNR/ IBNER, Reinsurance
Premium Ceded outside India and Unexpired Risk
Reserves. Based on the decisions of the appellate
authority, the interpretations of the relevant
provisions, 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 '83090 Lakhs has been disclosed as
contingent liabilities.

c) During the year, the Company clarified its accounting
policy to expressly state that realization; includes
amounts adjusted by the Income Tax Department
against outstanding demands of other assessment
years, as a result, company has recognized the
interest on income tax refund amounting to '31564
Lakhs [Refer Note no. 5(b)]

Further, during FY 2024-25, the Income Tax
Department withheld refunds pertaining to AY
2014-15 and 2017-18 amounting to ' 61234 Lakhs
(including interest of '18052 Lakhs [Refer Note no.
5(b)]) pursuant to an order under Section 245(2) of
the Income Tax Act, 1961, pending completion of
assessment for AY 2023-24. The assessment for
AY 2023-24 was concluded on March 23, 2026.
Consequent to the conclusion of the said pending
assessment, the aforesaid interest on refund has
been recognized as income in FY 2025- 26. The
amount of '61234 Lakhs was received in April 2026.

Further, during the year ended March 31, 2026, the
Company has received an amount of '36100 Lakhs
towards Income Tax Refunds including interest
amount of '8793 Lakhs pertaining to AY 2004-05,
2009-10 and 2018-19 after adjusting the tax demands
of '12956 Lakhs in respect of AY 2016-17 and 2019¬
20.

d) Deferred Taxes:

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

i) A sum of '2131 Lakhs (P.Y. '2763 Lakhs) has
been debited to the Profit and Loss Account
on account of reduction in deferred tax 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) Changes introduced in Income Tax Act, 2025

Under the Finance Bill, 2026, the Minimum Alternate
Tax (MAT) rate has been reduced from 15% to 14%
of “Book Profits” as defined under Section 206 of the
Income Tax Act, 2025. Furthermore, MAT has been
designated as a “final tax” for any payments made
on or after April 1, 2026. Accordingly, no fresh MAT
credit will be generated for taxes paid under Section
206 from Tax Year 2026-27 onwards.

The Finance Bill, 2026, introduces a transitional
provision for domestic companies. While existing MAT
credit (accumulated up to March 31, 2026, under the
erstwhile Section 115JAA of the 1961 Act) remains
protected, its utilization under the New Tax Regime
which is governed by Section 200 of the Income Tax
Act, 2025, is now subject to a restriction. Specifically,
the set-off of brought-forward MAT credit is limited
to 25% of the tax liability in any given tax year.

Given these significant legislative changes,
specifically the transition of MAT to a final tax and
the restricted set-off of 25% against the concessional
tax rate of 22% under Section 200, the Company will
evaluate the financial impact of transitioning to the
New Tax Regime versus remaining in the Old Tax
Regime in the Tax year 2026-27.

f) Goods and Service Tax (GST):

i) The Company has received an order dated
28/01/2025 from GST Authorities for non¬
payment of GST amounting to '84945 Lakhs
towards group Mediclaim policies to SEZ
and order dated 24/01/2025 for '7044 Lakhs
towards claims settled on net of salvage basis.
The Company has filed a writ petition before
the Hon'ble Bombay High Court. The Hon'ble
Bombay High Court has granted a stay till final
disposal of the writ petition in respect to group
Mediclaim policies issued to SEZ unit.

ii) Further, the company has received an order
dated 29/09/2025 from GST Authorities towards
non-payment of GST amounting to '237900
Lakhs, for co-insurance premium accepted
'193000 Lakhs and order dated 29/09/2025 on
reinsurance commission earned on reinsurance
ceded '44900 Lakhs. Therefore, the company
has challenged the said order before Hon'ble
Bombay High Court. The Hon'ble Bombay High
Court has granted a stay till final disposal of the
writ petition on the said order.

iii) As on March 31, 2026, the Company has
received multiple Orders from Service Tax
Authorities & GST Authorities aggregating
to '24098 Lakhs and aggregating to '23355
Lakhs respectively. Further, the company has
already challenged the said orders before the
Appropriate Authority.

iv) The above-mentioned amounts have been
disclosed as contingent liability.

7. Title deeds of immovable properties:

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

i) Thirty-Two properties having book value (Gross
Block) '1552 Lakhs (P.Y. Thirty-Two Properties
having book value '1490 Lakhs) for which
registration formalities are yet to be completed
/ title deeds are in process. Out of which,

1. title deeds of Seven properties having book
value 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.

2. 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.

ii) Office property having book value '217 Lakhs
(P.Y. '217 Lakhs) and Office freehold property
having book value '814 lakhs (P.Y. '752 lakhs)
for which agreement registration formalities are
pending.

iii) 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.

b) One leasehold property having book value of '107
Lakhs (P.Y. '107 Lakhs) where lease term expired

and renewal process is pending with the concerned
Government Authorities.

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

i) Out of total 20 properties owned by the Company,
07 properties are occupied by corporate tenants
and 13 are occupied by Individual Tenants.
Legal proceedings are in process against all 07
corporate tenants. Out of 13 Individual Tenants;
legal proceedings are in process against 9.
For remaining 4 Individual tenant's eviction
proceeding are contemplated.

ii) 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.

d) 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, 37 Nos of units
having value of '186 Lakhs are to be treated as
having clear titles.

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, 2026, 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 recognized 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. During the year 2025-26, the currency
Naira has improved as compared to last year and
accordingly impairment loss of '5107 Lakhs (PY
'2109 Lakhs) has been reversed.

9. Reinsurance, Inter Office, and Bank Reconciliation:

a) The net balances due to/due from in respect of re¬
insurance activities of the company amounting to
'54259 Lakhs debit are subject to confirmation/
reconciliation (Gross balance Receivable is '100478
Lakhs and Payable is '46219 Lakhs). These
accounts are still under process of compilation/age-
wise analysis/reconciliation and segregating into
debit and credit balances.

During the year ended March 31,2026, the Company
has written off (net) reinsurance balance of '98544
Lakhs which was provided in earlier years, as per the
policy of the Company.

As against Reinsurance recoverable gross balance of
'100478 Lakhs as on March 31,2026, the Company
has maintained a provision of '13893 Lakhs up to
March 31,2026, towards doubtful debts as a prudent
measure.

b) The reconciliation of various accounts relating to inter¬
office accounts and open items in Bank reconciliation
statement are in process. The effect of the same will
be ascertained after completion of the reconciliation
process.

10. In respect of Coinsurance business, the balances with
various Co-insurers represent a net receivable of '79054
Lakhs and net payable of '41651 Lakhs. The process
of obtaining confirmations and reconciliation of balances
is at different stages. The Company has maintained a
provision of '9642 Lakhs against the receivable balance
of '79054 Lakhs as on March 31, 2026. During the year
ended March 31, 2026 the company has written off an
amount of '6464 Lakhs which was provided for in earlier
years.

11. As per the practice consistently followed by the Company,
interest accrued on employee loans is recognized to the
extent recovered from the employee instead of accrued
to the account of the employee. Though the impact, if any,
arising out of the above cannot be ascertained, the same
is estimated to be not material based on past experience
of the company.

12. Old balances other than policy holder dues, mainly relating
to various control accounts amounting to '5769 Lakhs
outstanding for more than three years has been credited
to Profit & Loss Account during the quarter and year ended
March 31,2026.

16. 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 '19084 Lakhs (P.Y. '18849 Lakhs) in respect of obligation under operating lease are charged to revenue
account.

18. Corporate Social Responsibilities (CSR):

As per Section 135 of the Companies Act 2013 (the Act), the Company was required to spend an amount of '1040 Lakhs (P.Y.
'803 Lakhs) for the financial year 2025-26.

The charge for the year to the Statement of Profit and Loss on account of CSR amounting to '1040 Lakhs (P.Y '803 Lakhs)
consists of the following:

a) An amount of '262 Lakhs spent through implementing agencies.

b) An amount of '387 Lakhs transferred to a separate Unspent CSR Bank Account for ongoing projects for FY 2025-26, in
compliance with Section 135(6) of the Act.

c) An amount of '392 Lakhs pertaining to other than ongoing projects (unsanctioned amount for FY 2025-26) contributed
to the Armed Forces Flag Day Fund, in compliance with Schedule VII of the Act.

Apart from the above-mentioned CSR obligations, an amount of '30 Lakhs relating to the unspent CSR amount of FY 2022¬
23 transferred from the Unspent CSR Account to the Armed Forces Flag Day Fund within the prescribed timelines.

As on March 31, 2026 total unspent amount '626 Lakhs is pending against ongoing CSR projects.

19. 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, 2026 to March 31, 2026
requiring adjustments to figures reported in the audited accounts as received. Fixed deposits aggregating to '27039 Lakhs
were maturing between January 01,2026 to March 31,2026 for which no adjustment has been in the fixed deposits included
in Schedule 11. The status of these fixed deposits as at March 31, 2026 is as under:

20. Accounts of Run-off offices:

Hong Kong and Manila Offices of the Company are in Run-off status as the Company has stopped writing 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 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 financial statements.

21. Analysis of Unclaimed amounts of Policyholders/Consumers:

As required by IRDAI Master circular, ref: IRDAI/PPGR/CIR/MISC/97/06/2024 dated 19^th June, 2024, age-wise analysis of
unclaimed amount of the policyholders amounting to '21654 Lakhs (P.Y. '21458 Lakhs) as at March 31, 2026 representing
the excess premium collected, refund premium, stale cheque accounts and claims settled but not paid to policyholders/
beneficiaries is as follows:

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 10^th 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
'18 Lakhs for the quarter ended December 31, 2024 to
December 31, 2025 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, '7044 Lakhs and '237900
Lakhs for non-payment of GST on supply of group
Mediclaim insurance services to industrial units located
in Special Economic Zones, sale of salvage/wreck
generated during the settlement of Motor vehicle claims
and coinsurance premium accepted and reinsurance
commission earned on reinsurance ceded, respectively.
All these matters are industry wide and as per opinion
received, the company has merits in defending the notice.
The Company has filed a writ pbefore the Hon'ble Bombay
High Court challenging the Order. The Hon'ble Bombay
High Court granted stay till final disposal of writ petition in

respect of group Mediclaim policies issued to SEZ unit and
co-insurance and reinsurance matters.

25. Internal Controls:

The Company has fairly adequate internal controls 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 validations in the system. The Internal Audit
System including that relating to foreign offices is also
being strengthened and under comprehensive review.

26. Fraud Monitoring Cell:

The Company has a Fraud Monitoring Cell which monitors
external frauds reported and a Vigilance Department which
monitors internal frauds. The said fraud cell has compiled
data of 486 cases of fraud (with value of more than '10
Lakhs each) amounting '9204 Lakhs The summary is as
under:

27. 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.

28. On 21^st November 2025, the Government of India notified
four new Labour Codes- The Labour Code on Wages,
2019, The Industrial Relations Code, 2020, The Code
on Social Security, 2020 and The Occupational Safety,
Health and Working Conditions Code, 2020, consolidating
29 existing labour laws. The company is in the process of
evaluating and assessing the impact of these changes, to
the extent it is applicable to the company. The company
will continue to monitor the finalization of the pending
central and state rules and further clarifications issued by
the government in relation to the new labor codes and will
give appropriate accounting effect to any consequential
impact, as and when required.

29. During the quarter ended March 31,2026, the Government
issued the Gazette Notifications numbering S.O. 716(E),
717(E), 718(E) and 719 (E) dated February 11, 2026,
regarding the revision of Wages, and family pensions for
employees of Public Sector General Insurance Companies
(PSGICs) w.e.f. August 1, 2022. Consequently, the
Company has accounted for the arrears in wage revision
including retirement benefits amounting to '91129 Lakhs
(PY '9071 Lakhs) and '248686 Lakhs (PY '19807 Lakhs)
during the quarter and year ended March 31, 2026,
respectively.

Further, out of above an amount of '56931 Lakhs and
'121149 Lakhs related to employees retired prior to March
31, 2025, has been considered as 'Expenses other than
those related to insurance business' for the quarter and
year ended March 31, 2026, respectively.

30. Pursuant to the IRDAI (Actuarial, Finance and Investment
Functions of Insurers) (Amendment) Regulations, 2026,
the Company was mandated to adopt Ind AS effective
from April 1, 2026. However, considering the technical
complexities in transitioning to a fair-value measurement
model and the systems-readiness, the Company has

applied for one-year forbearance with the IRDAI as per the
amended regulations. Consequently, the primary financial
statements for the current period continue to be prepared
under the IRDAI (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024 as amended
(IGAAP), while the Company simultaneously submits
parallel Ind AS-compliant financial information to the IRDAI
for monitoring purposes. This deferral aims to ensure
the robustness of the transition and minimize volatility in
stakeholders' assessment of the Company's net worth and
solvency margins during the initial implementation phase,
with full statutory compliance now scheduled for April 1,
2027.

31. 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.

32. The Board of Directors of the Company proposed the final
dividend of '1.50 per share (PY '1.80 per share) being
30% 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 Standards (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
Standards) Rules, 2016, the Company has not appropriated
the proposed Dividend from the Standalone Profit & Loss
Account for the year ended on March 31 2026.

33. Previous year figures have been regrouped / rearranged,
as under.

23 Interest, Dividend and Rent 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.

24 Disclosure of policy and principles for provisioning for policy cancellations during free look period, based on assumptions and
experience, duly certified by the appointed actuary.