4.16 Provisions and Contingent Liabilities and Contingent Assets

In accordance with Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets prescribed by Companies
(Accounting Standard) Rules 2021, to the extent applicable to the company, provisions are created in respect of obligations as a result
of past events and it is probable that an outflow of resources will be required to settle the obligations, in respect of which a reliable
estimate can be made. Provisions are not discounted to their present value and are determined based on management estimate required
to settle the obligation at the Balance Sheet date. These will be reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent losses arising from claims other than insurance claims, litigation, assessment, fines, penalties, etc. are recorded when it is
probable that a liability has been incurred and the amount can be reasonably estimated.

A disclosure for a contingent liability other than those under policies is made when there is a possible obligation or a present obligation
that may, but probably will not require an outflow of resources.

Show Cause Notices issued by various Government Authorities are not considered as Obligation. When the demand notices are raised
against such show cause notices and are disputed by the Company, these are classified as disputed obligations under contingent liability.

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

Contingent Assets are neither recognised nor disclosed in the Financial Statements.

4.17 Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account in the period in which they are incurred.

4.18 Receipts and Payments Account (Cash flow statement):

(i) Receipts and Payments Account is prepared and reported using the Direct Method, in conformity with Para 2.2 of the Master Circular
on Preparation of Financial Statements - General Insurance Business dated October 5, 2012, issued by the IRDAI.

(ii) Cash and cash equivalents comprises cash on hand and demand deposits with Banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible
into known amounts of cash and which are subject to insignificant risk of changes in value.

4.19 Transfer of amounts to Senior Citizen Welfare Fund

In accordance with the requirement of the Notification no G.S.R 380(E), issued by the Ministry of Finance,

dated April 11,2017 read with IRDAI Circular No. IRDA/F&A/CIR/MISC/173/07/2017 dated July 25, 2017 the Company transfers amounts
outstanding for a period of more than 10 years in Unclaimed Amount of Policyholders to the Senior Citizen Welfare Fund (SCWF) on or
before March 1^st of each financial year.

Note :

a) The Company has disputed the demand raised by Goods and Service Tax Authorities for various years and denial of refund
claim amounting to ' 28,813 Lakhs (previous year: ' 28,444 Lakhs). The demand orders majorly pertain to non-payment of
GST on industry vide issues such as ITC denial on marketing expense, GST on insurance premium for the policies issued to SEZ
and other miscellaneous issues like mismatch in GSTR3B vs GSTR2A, GST credit claimed under reverse charge mechanism. The
department has issued demand order on suo-moto basis without giving reasonable opportunity to be heard.

b) The Company has no demand raised by Income Tax Authorities to be classified as contingent liability (previous year : ' 106
Lakhs).

In the view of the Company, and as advised by the counsel, the decisions are expected to be in favour of the Company, based
on the facts of the case and taxation law.

Other Matters:

Income Tax:

A. The Company had challenged, by way of Writ Petitions before the Hon'ble High Court of Madras, the Income Tax Assessment
Orders for Assessment Years 2009-10, 2010-11 and 2011-12 with demands aggregating to ' 6,268 Lakhs (previous year: ' 6,268
Lakhs) on account of applying the provisions of Section 115 JB of Income Tax Act, 1961. The Hon'ble High Court of Madras,
accepting the pleas of the Company set aside the impugned orders with the directions that the Income tax department could
pass appropriate orders after the Hon'ble Supreme Court gives its direction on the Special Leave petition pending with the
Hon'ble Supreme court.

The company has received an order from the Joint Commissioner of Income tax (OSD) on August 16, 2021 for the Assessment
Year 2009-2010, granting a refund of ' 2,224 Lakhs. As per above mentioned order the company is not liable to pay tax under

provision of section 115JB and Income tax demand of ' 2,458 Lakhs is nullified. The company has already received a sum of
' 781 Lakhs out of ' 2,224 Lakhs refund sanctioned as per order and is taking steps to obtain the balance due. As there are no
subsisting demands as on date, no provision is considered necessary in the books.

The principal commissioner of income tax, Chennai has initiated the revision proceedings under section 263 of the Income
tax Act. The department has mentioned that the order passed by Joint commissioner of income tax (OSD) dated August 16,
2021 is erroneous and not in line the high court judgement. The Company has filed writ appeal on April 12, 2023.

The Principal Commissioner of Income Tax, Chennai has set aside the order passed by the AO. The Company has challenged
the order and filed an appeal in ITAT on January 4, 2024.The ITAT remanded back the order to AO. The AO on further scrutiny
has confirmed that the refund issued to the Company is genuine and for the balance refund the same will be passed once
appropriate orders of the Honorable Supreme Court gives its direction on the Special Leave petition pending with the
Honorable Supreme Court.

B. The Company has received an order dated December 27, 2019 for the Assessment year 2014-15 from the Office of Assistant
Commissioner of Income tax raising a demand of ' 4,244 Lakhs towards Income tax and Interest payable towards amount of
unexpired risk reserve not being appropriated in the Profit and Loss account. The Company has challenged the order before
Commissioner of income tax (Appeals), while having taken a stay for the demand from Hon'ble High Court of Madras subject
to payment of 10% tax amounting to ' 251 Lakhs. In the opinion of the company, both on law and facts, the said demands are
not sustainable and hence no provision is considered necessary in the books.

C. For Assessment Year 2021-22, The Company received the refund claimed in the original return.

Payment of Bonus Act:

The Payment of Bonus Act was amended with retrospective effect and resulted in increasing the bonus liabilities. The additional
liability on account of retrospective amendment is ' 148 Lakhs (previous year: ' 148 Lakhs). The retrospective amendment is
being challenged by various parties in the High Court and based on the final outcome on determination of the court cases
would be accounted for on that date.

5.1.2 The assets of the Company are free from all encumbrances except for deposits of ' 1,926 Lakhs (previous year: ' 813 Lakhs) with the
courts against disputed claims. Pending disposal of the case, in the opinion of the Company the said amount is considered good
and recoverable.

5.1.9Allocation of expenses

The company has allocated expenses of management as per the policy approved by the Board of Directors.

Directly allocable expenses:

Expenses which are directly allocated to specific segments are recorded and disclosed under the respective segments. lt includes
commission to the insurance agents, insurance intermediaries, brokerage, etc.

lndirect expenses - Apportioned

Expenses which are not directly identifiable to specific segments are apportioned among segments based on Gross written premium.
lt includes employees' remuneration, advertisement and publicity, depreciation, information technology expenses, communication
expenses, operational expenses, other administrative expenses, net of transfer of claims cost, incentive payable to field staff etc.

During the year, the company has transferred from Operating Expenses (Ref: Schedule 4 of the Financial Statements under "Others
- In House Claims Processing Cost") to Claims cost an amount of ' 16,137 Lakhs (previous year: ' 15,168 Lakhs) being 1% of the
gross premium (excluding co-insurance inward and policies/claims processed by outsourced Third Party Administrators (TPAs))
pertaining to Health & Personal Accident (PA) segment towards In House Claims processing expenditure based on the Insurance
Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance
business) Regulations, 2023

C) Employee Stock Option plan (ESOP)

The Company has introduced Employee Stock Option plan (ESOP 2019) in the financial year 2019-20 effective from August 6,
2019 (date of grant). The Company has granted Stock Options to employees in compliance with the Securites and Exchange
Board of India (Share Based Employee Benefits and Sweat Equity) Regulations 2021. The ESOP Plan 2019 was modified pursuant
to the resolutions passed by the Board of Directors of the company in the meeting held on May 23, 2021, September 28, 2021
and January 25, 2022 and by the Shareholders of the Company in an extra ordinary general meeting held on July 16, 2021,
October 4, 2021 and March 03, 2022. Under the ESOP 2019, the company has given options to eligible employees to acquire
equity share in the Company. The options have been granted under various tranches.

During the year ended as at March 31,2025 the company had granted 351,679 No. of options (previous year: 576,000 Options)
which will vest over a period of 5 years in the ratio 20:20:20:20:20 starting at the end of the 1^st year from the date of grant.

Out of the ESOP 2019 options issued up-to the Year ended March 31, 2025: 654,189 Options (Net of Withdrawn Option)
(previous year: 690,989 Options), were issued for exercise price which is less than the fair value of the option. Therefore, the
corresponding compensation cost of '15 Lakhs (previous year: '95 Lakhs) is charged to profit and loss accounts.

5.2.19 Investor Education & Protection Fund:

For the year ended March 31,2025, the company has transferred ' NIL (previous year: ' NIL) to the Investor Education & Protection Fund.

5.2.20 As per proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 which is applicable from April 1,2023, the Company has used
accounting software for maintaining its books of account, have a feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in the respective software. There are no instances of the
audit trail feature being tampered with. The preservation of audit trail is as per statutory requirements for record retention effective
from the financial year ended March 31,2025.

5.2.21 The Company has formed Steering committee of Department Heads to implement Indian Accounting Standards (Ind AS). The
Steering committee meets regularly to discuss and take forward the implementation of Ind AS. The Ministry of Corporate Affairs
(MCA) has issued Ind AS 117 (equivalent of IFRS 17) on August 12, 2024 but subsequently deferred its applicability vide MCA
notification dated September 28, 2024 that Ind AS 117 will be applicable once it is notified by IRDAI.

The Company has engaged the knowledge partner and technology partner for Ind AS 117 implementations. "Define 17" System
is implemented for convergence to Ind AS requirements. Data migration to Define 17 is completed. In addition to current IGAAP
Financial Statements, the Company will be publishing Ind AS Compliant Financial Statements for the year ended March 31,2025
along with previous year comparative numbers.

5.2.22 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

5.2.23 No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

For and On Behalf of Board of Directors

Anand Roy Deepak Ramineedi

Managing Director & Chief Executive Officer Director

DIN: 08602245 DIN: 07631768

Nilesh Kambli Jayashree Sethuraman

Chief Financial Officer Company Secretary

As Per Our Report of Even Date attached

For M/s M S K A & Associates., For M/s T R Chadha & Co LLP.,

Chartered Accountants Chartered Accountants

Firm Reg No.: 105047W Firm Reg No.: 006711N/N500028

Vaibhav Naik Sheshu Samudrala

Partner Partner

M.No.: 138302 M.No.: 235031

Place: Chennai
Date: April 29, 2025