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