We have audited the accompanying financial statements
of Star Health And Allied Insurance Company Limited
("the Company"), which comprise the Balance Sheet as
at March 31, 2026, the Revenue Accounts, the Profit and
Loss Account and the Receipts and Payments Account for
the year then ended, the schedules annexed there to and
notes to the financial statements, including a summary of
the significant accounting policies and other explanatory
notes forming part of the financial statements (herein
after referred to as "Financial Statements").

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required by
provisions of the Insurance Act, 1938, as amended by the
Insurance Laws (Amendment) Act, 2015 (the "Insurance
Act") read with Insurance Regulatory and Development
Authority Act, 1999 (the "IRDAI Act"), and other accounting
principles generally accepted in India, to the extent
considered relevant and appropriate for the purpose
of these annual financial statements and which are not
inconsistent with the accounting principles as prescribed
in the Insurance Regulatory and Development Authority
of India (Actuarial, Finance and Investment Functions of
Insurers) Regulations, 2024 (the "IRDA Financial Statement
Regulations") and orders/ directions / circulars issued by
the Insurance Regulatory and Development Authority of
India ("IRDAI"/ the "Authority"), to the extent applicable
and the Companies Act, 2013, as amended, ('the Act') to
the extent applicable and in the manner so required, and
give true and fair view in conformity with the accounting
principles generally accepted in India, as applicable to
insurance companies:

i. in the case of the Balance Sheet, of the state of
affairs of the Company as at March 31, 2026;

ii. in the case of the Revenue Accounts, of the operating
profit in the Miscellaneous business for year ended
on that date;

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

iv. in the case of the Receipts and Payments Account,
of the receipts and payments for the year ended on
that date.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the financial statements of the current period
and include the most significant risks identified by us
that may lead to material misstatement (whether or not
due to fraud) and assessed by us as part of the audit
procedures. These matters included those which had the
greatest effect on the overall audit strategy, the allocation
of resources in the audit and directing the efforts of the
engagement team.

These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report.

Information Other than the Financial
Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for
the other information. The other information comprises
the information included in the Director's Report and
Annexures there to but does not include the Financial
Statements and our Auditors' report thereon. The other
information is expected to be made available to us after
the date of this auditor's report thereon.

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

In connection with our audit of the financial statements,
our responsibility is to read the other information when
it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the
financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.

Responsibility of Management and
Those Charged With Governance for the
Financial Statements

The Company's Board of Directors is responsible for
the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements
that give a true and fair view of the financial position,
financial performance and cash flows of the Company in
accordance with the requirements of the Insurance Act,
the IRDAI Act, the IRDAI Financial Statements Regulations,
the Act and in accordance with the accounting
principles generally accepted in India, including the
applicable Accounting Standards specified under
Section 133 of the Act read with relevant rules issued
thereunder. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the financial statements, management
is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either

intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.

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

Auditors' Responsibilities for the Audit of the
Financial Statements

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

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

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

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

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

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

modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our
auditors' report. However, future events or conditions
may cause the Company to cease to continue as a
going concern.

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

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

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

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

From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements for the year ended March 31, 2026 and are
therefore, the key audit matters. We describe these
matters in our auditors' report unless law or regulation
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that
a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.

Other Matter

Pursuant to IRDAI (Appointed Actuary) Regulations 2017,
the actuarial valuation of liabilities in respect of claims
Incurred But Not Reported ("IBNR"), claims Incurred But
Not Enough Reported ("IBNER") and Premium Deficiency
Reserve ("PDR") as at March 31, 2026, has been duly
certified by the Appointed Actuary. They have also
certified that assumptions used for such valuation are
appropriate and in accordance with the guidelines and
norms issued by the IRDAI and the Institute of Actuaries of
India in concurrence with the IRDAI. Accordingly, we have
relied upon the aforesaid certificate from the Appointed

Actuary while forming our opinion on the financial

statements of the Company.

Our opinion is not modified in respect of above matter.

Report on Other Legal and Regulatory
Requirements

1. As required by the IRDA Financial Statements
Regulations, we have issued a separate certificate
dated April 28, 2026 certifying the matters specified
in paragraphs 3 and 4 of Part III of Schedule II to the
IRDAI Financial Statements Regulations.

2. This Report does not include a statement on the
matters specified in paragraph 3 and 4 of the
Companies (Auditor's Report) Order, 2016 ("the
Order") issued by the Central Government of India in
terms of sub-section 11 of Section 143 of the Act, since
in our opinion and according to the information
and explanations given to us, the said Order is not
applicable to the Company.

3. As required by IRDA Financial Statements Regulations,
read with Section 143 (3) of the Act, we report that:

a. We have sought and obtained all the
information and explanations which to the best
of our knowledge and belief were necessary for
the purposes of our audit;

b. In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matters stated in the
paragraph k (vii) below on reporting under Rule
11(g);

c. As the Company's financial accounting system
is centralized at Head Office, no returns for
the purposes of our audit are prepared at the
branches of the Company;

d. The Balance Sheet, the Revenue Accounts, the
Profit and Loss Account, and the Receipts and
Payments Account dealt with by this Report are
in agreement with the books of account;

e. In our opinion and to the best of our information
and according to the explanations given to us,
investments have been valued in accordance
with the provisions of the Insurance Act the
IRDA Financial Statements Regulations and / or
orders / directions/circulars/guidelines issued
by the IRDAI in this behalf;

f. In our opinion and to the best of our information
and according to the explanations given to us,
the aforesaid financial statements dealt with
by this report comply with the Accounting
Standards specified under Section 133 of the Act
to the extent they are not inconsistent with the

accounting principles prescribed in the IRDAI
Financial Statements Regulations and orders/
directions issued by IRDAI in this regard;

g. In our opinion and to the best of our information
and according to the explanations given
to us, the accounting policies selected by
the Company are appropriate and are in
compliance with the Accounting Standards
specified under Section 133 of the Act, to
the extent they are not inconsistent with the
accounting principles prescribed in the IRDAI
Financial Statements Regulations and orders /
directions issued by the IRDAI in this behalf;

h. On the basis of the written representations
received from the directors as on March 31,
2026, taken on records by the Board of Directors,
none of the directors is disqualified as on March
31, 2026 from being appointed as a director in
terms of Section 164 (2) of the Act;

i. As required by the Companies (Amendment)
Act, 2017, in our opinion, according to information
and explanations given to us, the remuneration
paid/ provided by the Company to its directors
during the year is within the limits prescribed
under section 197 of the Act read with Section
34A of the Insurance Act, 1938;

j. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure A" to this report.
Our report expresses an unmodified opinion
on the existence of internal financial control
with reference to financial statements and its
operating effectiveness in the company.

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

i. The Company has disclosed the impact of
pending litigations on its financial position
in its financial statements - Refer Note 5.1.1
of Schedule 16 to the financial statements;

ii. Liability for insurance contracts, is
determined by the Company's Actuary
referred to in Other Matter paragraph
above, on which we have placed reliance;
and the Company did not have any other
long-term contracts including derivative
contracts for which there were any material

foreseeable losses - Refer Note 5.2.16 of
Schedule 16 to the financial statements;

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

iv. (a) The Management has represented

that, to the best of its knowledge
and belief, other than as disclosed
in the Note 5.2.22 of Schedule 16 to
the Financial Statements, no funds
(which are material either individually
or in the aggregate) 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 or entity, including
foreign entity ("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;

(b) The Management has represented,
that, to the best of its knowledge
and belief, other than as disclosed in
the Note 5.2.23 of Schedule 16 to the
Financial Statements, no funds (which
are material either individually or in the
aggregate) have been received by the
Company from any person or entity,
including foreign entity ("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;

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

v. The Company has not declared or paid any
dividend during the year and accordingly
no compliance with respect to section 123
of the Act is required to be followed.

vi. The reservation relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 3(b)
above on reporting under Section 143(3)
(b) and paragraph 3(k)(vii) below on
reporting under Rule 11(g).

vii. Based on our examination, which included
test checks, the Company has used
accounting software for maintaining its
books of account which has a feature
of recording audit trail (edit log) facility
and the same has operated throughout
the year for all relevant transactions
recorded in the software. Further, during
the course of our audit, we did not come
across any instance of audit trail feature
being tampered with. Additionally, the
audit trail of prior year has been preserved
by the Company as per the statutory
requirements for record retention, except
for SAP HANA where there is no SOC Type II
report available to provide us comfort as to
whether the Audit trail feature is available,
enabled and preserved throughout
the year.

For M S K A & Associates LLP For T R Chadha & Co LLP

(formerly known as M S K A & Associates) Chartered Accountants

Chartered Accountants ICAI Firm Registration No: 006711N/N500028

ICAI Firm Registration No: 105047W/W101187

Vaibhav Naik Sheshu Samudrala

Partner Partner

Membership No: 138302 Membership No: 235031

UDIN: 26138302JWWLTF6737 UDIN: 26235031OTKWTW8130

Chennai Chennai

April 28, 2026 April 28, 2026