General Insurance Corporation of India Auditor Reports

<dhhead>INDEPENDENT AUDITORS REPORT</dhhead>

To

The Members of General Insurance Corporation of India

Report on the Audit of Standalone Financial Statements

OPINION

1. We have audited the accompanying Standalone Financial Statements of General Insurance Corporation of India ("the Corporation"), which comprise the Balance Sheet as at 31^st March 2024, the Revenue Accounts of Fire, Miscellaneous, Marine and Life Insurance (collectively known as ‘Revenue Accounts), Profit and Loss Account, the Cash Flow statement for the year ended on that date and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information, in which are incorporated financial information of three branches audited by branch auditors and one unaudited branch. The Companys branches are listed in Appendix 1.

2. In our opinion and to the best of our information and according to the explanations given to us, based on the consideration of the reports of the branch auditors as referred to in paragraph 7 & 8 of this report, we report that the aforesaid standalone financial statement: a. give the information required in accordance with the requirements of the Insurance Act 1938 as amended by the Insurance Laws (Amendment) Act, 2015 (‘the Insurance Act), the Insurance Regulatory and Development Authority Act, 1999 (‘the IRDAI Act), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 (‘the IRDAI Financial Statements Regulations), the Companies Act, 2013 (‘the Act) including the Accounting Standard specified under section 133 of the Companies Act, 2013 to the extent applicable and in manner so required; and b. give a true and fair view, in conformity with the accounting principles generally accepted in India as applicable to the Insurance Companies, of state of affairs of the Corporation as on 31^st March 2024, surplus of revenue accounts of Fire, Miscellaneous, Marine and Life business, in case of profit and loss account of the profit for the year ended on that date and its cash flows for the year ended on that date.

BASIS FOR OPINION

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone 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 together with the ethical requirements that are relevant to our audit of the standalone 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 together with the audit evidence obtained by the other auditors including the branch auditors in terms of their reports referred to in paragraph 7 & 8 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

EMPHASIS OFMA TTERS

4. We draw attention to the following matters in the Notes to the standalone financial statements: a. Note No. 24(b) regarding, balances due to/from, the deposits kept with other persons/bodies carrying on Insurance business including reinsurance businesses are under process of reconciliation, and as stated in the note the consequential impact (if any) will be accounted for after its reconciliation. b. Note No. 56 regarding, to the Standalone Financial Results regarding change in methodology of accrual of premium pursuant to IRDAI circular.

Our opinion is not modified in respect of the above matters.

KEY AUDIT MATTERS

5. Key audit matters are those matters that, in our professional judgement, and based on the consideration of the reports of the branch auditors as referred to paragraph 7 & 8 below, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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

Sr. No.	Key Audit Matters	How our Audit addressed the Key Audit Matter
a)	Revenue Recognition:	Our audit procedures on revenue recognized included:
	The Corporation recognizes reinsurance premium income based on the statement of accounts or closing statements received from the ceding companies. At the year end, estimates are made for the accounts not received based on the Estimated Premium Income (EPI) agreed upon by both the Corporation and the Ceding Companies at the time of inception of the treaty or policy slip. Premium estimation is the differential of EPI and the booked premium for the Corporation. Estimation of Income can be considered reasonable only when the factors involved in premium estimation are extracted correctly from the IT accounting system.	Tested the design, implementation and operating e_ectiveness of key controls over Revenue Recognition.
		Verified Premium Estimation with the guidelines of the Corporation and have performed test of controls, test of details and analytical review procedures on estimation of income.
		Verified EPI from the treaty or policy slip as the case may be and verified Actual Premium booked from Statement of Accounts or Closing statements received from the Cedants on the sample basis.
b)	Claim Provisioning:	Our audit procedures on claim provisioning included:
	Insurance Claim is the major area of expense for the insurance company. Total claims incurred include paid claims, Outstanding Loss Reserve (OSLR) and Claims Incurred but Not (Enough) Reported (IBNER).	Verified guidelines of the Corporation relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. Verified the claim paid and provision created on sample basis with payment proof and Preliminary Loss advice received from the Cedant Company and the same is further verified from the surveyors report.
	The Provision and payment of claims was considered to be one of the areas which required significant auditor attention and was one of the matter of most significance in the Standalone Financial Statements as the quantum involved is significant.	For the claim cases which has been incurred but not reported and cases in which claim has been reported but not enough reported, these cases has been captured by the actuaries appointed by the Corporation. The Actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at March 31st, 2024, is as certified by the Corporations Appointed Actuaries and we had audited the amounts and the related liability, based on such report.
c)	Valuation of Investments:	Our audit procedures on Investment included the following:
	The Corporations investments represent a substantial portion of the assets as of 31st March 2024, which are to be valued in accordance with accounting policy framed as per the extent of the regulatory guidelines.	Understood Managements process and controls to ensure proper classification and valuation of Investment.
		Verified and obtained appropriate external confirmation for availability and ownership rights related to these investments.
	The valuation of all investments should be as per the investment policy framed by the Company which in turn should be in line with IRDAI Investment Regulations and Preparation of Financial Statement Regulations. The valuation methodology specified in the regulation is to be used for each class of investment.	Tested the design, implementation, management oversight and operating effectiveness of key controls over the classification and valuation process of investments.
	The Company has a policy framework for Valuation and impairment of Investments. The Company performs an impairment review of its investments periodically and recognizes impairment charge when the investments meet the trigger/s for impairment provision as per the criteria set out in the investment policy of the Company. Further, the assessment of impairment involves significant management judgment. The classification and valuation of these investments was considered one of the matters of material significance in the audit of Standalone Financial Statements due to the materiality of the total value of investments to the Standalone Financial Statements.	Test-checked valuation of different class of investments to assess appropriateness of the valuation methodologies with reference to IRDAI Investment Regulations along with Companys own investment policy.
		Reviewed the Companys impairment policy and assessed the adequacy of its impairment charge on investments outstanding at the Year end.
		Based on procedures above, we found the companys impairment, valuation, and classification of investments in its Standalone Financial Statements in all material respects to be fair.
d)	Ascertainment, disclosure and Provisions of contingent liabilities:	Our audit procedures included, but were not limited to the following:
	The Company has material uncertain tax matters, both direct and indirect, under dispute involving considerable demand raised on the Company which require significant judgment to determine the possible outcome of these disputes.	Obtained understanding of the process of identification and measurement of provisions and contingent liabilities relating to ongoing litigations implemented by the management, through various discussions held with companys legal and finance personnel.
	Additionally, the Company has other ectiveness eff ongoing legal matters relating to various claims not acknowledged as debts which require application of management judgement in order to determine the likely outcome.	Tested the design and operating of the controls put in place by the management in relation to assessment of the outcome of the pending litigations at various level of regulatory authorities and judicial hierarchy.
	Managements disclosures with regards to provisions and contingent liabilities relating to ongoing litigation are presented in Note No. 46 to the Companys Standalone Financial Statements.	Inspected the summary of litigation matters and discussed key developments during the year with the Companys Legal and Finance personnel.
	The assessment of whether a liability is recognised as a provision or disclosed as a contingent liability in the standalone financial statements is inherently subjective and requires significant management judgement in determination of the cash outflows from the business, interpretation of applicable laws and regulations, and careful examination of pending assessments at various levels of regulatory authorities.	Inspected and evaluated, where applicable, external legal and/or regulatory advice sought by the Company.
		Discussed and challenged the managements assessment of the likelihood, magnitude and accounting of any liability that may arise in certain material cases. Accordingly, we reviewed the amount of provisions recognised and contingent liabilities disclosed in the standalone financial statements and exercised our professional judgment to assess appropriateness of such conclusions, involving experts as required.
	Since the amounts involved are significant and due to the range of possible outcomes leading to high estimation uncertainty that requires significant management and auditor judgement, this matter is considered to be a key audit matter for the current year audit.	Evaluated the adequacy of disclosures made in the standalone financial statements in accordance with the applicable accounting standards.

OTHER MATTERS

7. We did not audit the financial information of two foreign branches and one Indian branch included in the Standalone Financial Statements, whose audited financial information reflect total assets (before eliminations) of Rs 6,08,80,098 thousands as at 31^st March 2024 and total Premiums earned (Net) (before eliminations) of Rs 1,46,25,364 thousands and Loss after Tax (before elimination) of Rs 2,51,389 thousands for the year ended on that date respectively, as considered in the Standalone Financial Statements. These financial information have been audited by another auditor whose report has been furnished to us and our conclusion on the Standalone Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these branches is based solely on the report of another auditor.

8. We did not audit the financial information of One foreign branch included in this Standalone Financial Statements whose unaudited financial information reflects total assets (before eliminations) of Rs 3,37,01,841 thousand as at 31^st March 2024 and Premiums earned (Net) (before eliminations) of Rs 1,10,42,593 thousand and Loss after Tax (before eliminations Rs 15,32,692 thousand for the year ended on that date as considered in the Standalone Financial Statements.

9. Three branches are located outside India whose financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been reviewed by other auditors or local management certified under generally accepted auditing standards applicable in their respective countries. The Corporations management has converted the financial information of such branches located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have reviewed these conversion adjustments made by the Corporations management. Our conclusion in so far as it relates to the balances and affairs of such foreign branches located outside India is based on the report of another auditor/management certified accounts and the material conversion adjustments prepared by the management of the Corporation reviewed by us.

10. The Standalone Financial Statements include the financial information of Dubai branch which has intimated the Run-off branch status as per the audited financial information received for the year ended 31^st March 2024. The auditors of the branch have also stated that the Branch is not looked upon as a Going Concern in the future as a Portfolio Transfer Agreement has been entered on 14^th September 2022, between GIC Gift City Branch and Dubai Branch.

11. The actuarial valuation of liabilities in respect of Incurred But Not Reported (the "IBNR") including Incurred but not Enough Reported (the "IBNER"), Premium De_ciency Reserve (the "PDR") and Technical Reserves (the "TR) is the responsibility of the Corporations Appointed Actuaries (the "Appointed Actuaries"). The actuarial valuation of these liabilities, that are estimated using statistical methods, as at 31^st March 2024 has been duly certified by the Appointed Actuaries and in their opinion, the assumptions considered by them for such valuations are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with the IRDAI. We have relied upon the Corporations Appointed Actuaries Certificates in this regard for forming our conclusion on the valuation of liabilities for outstanding claims reserves, the PDR and TR contained in the Standalone Financial statements of the Corporation.

12. The Standalone Financial Statements of the Corporation for the year ended 31^st March 2023 were audited by D.R. Mohnot & Co and PKF Sridhar & Santhanam LLP, previous joint statutory auditor of the corporation who have expressed unmodified opinion vide their audit report dated 25^th May 2023.

Our report is not modified in respect of the above matters.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON

13. The Corporations Management and Board of Directors is responsible for preparation of the other information. The other information comprises the information included in the Annual Report including Annexures to Boards Report, Management Discussion and Analysis, Business Responsibility Report and Report on Corporate Governance, but does not include the Standalone Financial Statements and our auditors report thereon. This Annual Report and other information are expected to be made available to us after the date of this auditors report.

Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matters to those charged with governance.

RESPONSIBILITIES OF THE MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS.

14. The accompanying standalone financial statements have been approved by the Companys Board of Directors. The Corporations Board of Directors is responsible for matters as stated in section 134(5) of the companies act, 2013 ("the act") with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and Cash flows of the Corporation in accordance with the Insurance Act 1938, as amended, by the Insurance Laws (Amendment) Act, 2015 (‘the Insurance Act), the Insurance Regulatory and Development Authority Act, 1999 (‘the IRDAI Act), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 (‘the IRDAI Financial Statements Regulations), the Companies Act, 2013 (‘the Act) including the Accounting Standard specified under section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India.

15. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding of the assets of the Corporation 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 & presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

16. In preparing the Standalone Financial Statements, the management is responsible for assessing the ability of the Corporations to continue as 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 Corporation or to cease operations, as has no realistic alternative but to do so.

17. The Board of Directors is also responsible for overseeing the Corporations financial reporting process.

AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

18. Our Objective are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatements, 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 Standalone Financial Statements.

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

Identify and assess the risks of material misstatements of the Standalone Financial Statements, whether due to fraud and 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, misrepresentation, or the override of internal controls.

Obtain and understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Corporation has in place an adequate internal financial control systems over financial reporting 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 the management use of going concern basis of accounting and, based on audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporations ability to continue as a going concern. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or condition may cause the Corporation to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

20. 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 de_ciencies in internal control that we identify during our audit. 21. We also provide those charged with governance with a statement that we have complied with the 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.

22. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of Standalone Financial Statements of the current period 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

23. As required by the IRDAI Financial Statements Regulations, we have issued a separate certificate dated 28^th May 2024 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDAI Financial Statement Regulations (refer to our separate report in "Annexure A").

24. Based on our audit and on the consideration of the reports of the branch auditors as referred to in paragraph 7 & 8 above, we report that the provisions of section 197 read with Schedule V to the Act are not applicable to the Company since the Company is a Government company as defined under section 2(45) of the Act. Accordingly, reporting under section 197(16) is not applicable.

25. As required by Section 143 (3) of the Companies Act, 2013 and Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 and orders or direction issued by the Insurance Regulatory and Development Authority, based on our audit, and on the consideration of the reports of the branch auditors as referred to in paragraph 7 & 8 above, we report, to the extent applicable, 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 purpose of our audit of the accompanying standalone financial statements; 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us; c) The reports on the accounts of the three branch offices of the Company audited under section 143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report; d) The Standalone Balance Sheet, Standalone Revenue Accounts, Standalone Profit and Loss Account and Standalone Cash Flow Statement dealt by this Report are in agreement with the books of accounts and with the returns received from the branches/representative offices not visited by us. e) The Actuarial valuation of liabilities as on 31^st March 2024 is duly certified by the corporations appointed actuary including to the effect that the assumptions for such valuation are in accordance with the guidelines issued by the Institute of Actuaries of India to its members and has been forwarded to IRDAI. f) The Standalone Balance Sheet, Standalone Revenue Accounts, Standalone Profit and Loss Account have been drawn in accordance with the Insurance Act 1938, IRDAI Act, 1999 and the Act except for the Standalone Cash Flow Statement, (refer Note 55) which is prepared under indirect method, whereas IRDAI regulations require Cash Flow Statements to be prepared under Direct Method. g) Investments have been valued in accordance with the provisions of the Insurance Act, the regulations and orders/directions issued by IRDAI in this regard except investment which have been considered as fully impaired are not fair valued as required by para 6(c) of the IRDAI Financial Statements Regulations. h) In our opinion, the aforesaid standalone financial statements comply with Accounting Standards specified under the Act, the Accounting policies selected by the Corporation are appropriate and are in accordance with the applicable accounting standards and with the accounting principles, as prescribed in the IRDAI (Auditors Report) Regulations, 2002 or any order or direction issued by IRDAI in this behalf. i) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under section 133 of the Act in conformity with the accounting principles prescribed in the IRDAI regulations. j) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended, we report that the provisions of section 197 of the act are not applicable to the Corporation vide notification No. GSSR 463 (E) dated June 5^th, 2015. Hence reporting u/s 197 (16) of the Act is not required. k) The Corporation being an Insurance Company, the Companies (Auditors Report) Order, 2020 ("the order") as amended, issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act is not applicable. l) With respect to the adequacy of the internal financial controls over financial reporting of the Corporation and the operating effectiveness of such controls, refer to our separate report in "Annexure B". m) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014, in our opinion and to the best of our information and according to the explanations given to us: (i) The standalone financial statements disclose the impact of pending litigations on the standalone financial position of the Company as at 31^st March 2024, as detailed in note 46 to the standalone financial statements; (ii) Provisions have been made as on 31^st March 2024 in the Standalone Financial Statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts. There were no derivative contracts as on 31^st March 2024.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Corporation.

(iv) (a) The Management has represented that, to the best of their knowledge and belief, 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, Beneficiaries. security or the like on behalf of the Ultimate

(b) The Management has represented, that, to the best of their knowledge and belief, 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 Board of Directors of the Company has proposed a final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

(vi) Based on our examination which included test checks, the corporation has used an 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.

26. As required under section 143(5) of the Companies Act, 2013 based on our audit as aforesaid, we enclose herewith, as per "Annexure C", the directions including the additional directions issued by Comptroller and Auditor General of India, action taken thereon and the financial impact on the accounts and the Standalone Financial Statements of the Corporation.

for KASG & Co.	for Mehra Goel & Co.
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 002228C	ICAI Firm Registration Number: 000517N
CA. Bharat Goel	CA. Vaibhav Jain
Partner	Partner
Membership No.: 060069	Membership No.: 515700
UDIN: 24060069BKGYXW4792	UDIN: 24515700BKBXZI2400
Place: Mumbai	Place: Mumbai
Date: 28-05-2024	Date: 28-05-2024
APPENDIX 1
List of Branches audited by Branch Auditors
1. GIC Re, Gift City, India 2. GIC Re, Dubai, UAE 3.	GIC Re. London, UK
List of Branch unaudited
4. GIC Re, Malaysia

"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OFG ENERAL INSURANCE CORPORATION OF INDIA

(referred to in paragraph 23 of the Independent Auditors Report dated 28^th May 2024) To

The Board of Directors

General Insurance Corporation of India

170 J Tata Road, Church Gate, Mumbai Dear Sirs,

1. This certificate is issued to comply with the provisions of paragraph 4 of Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations 2002, ("the IRDA Financial Statements Regulations") read with Regulation 3 of the IRDA Financial Statements Regulations and may not be suitable for any other purpose.

Managements Responsibility

2. The Corporations Board of Directors is responsible for complying with the provisions of The Insurance Act, 1938 (as amended by the Insurance Laws (Amendment) Act 2015) (the "Insurance Act"), the Insurance Regulatory and Development Authority Act, 1999 (the "IRDA Act"), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 (the "IRDA Financial Statements Regulations"), orders/directions issued by the Insurance Regulatory and Development Authority of India (the "IRDAI") which includes the preparation of the Management Report. This includes collecting, collating and validating data and designing, implementing and monitoring of internal controls suitable for ensuring compliance as aforesaid.

Auditors Responsibility

3. Our responsibility is to examine the statement or information or documents provided to us with reference to the books of account and other records of the Company for the relevant years, which have been subjected to audit pursuant to the requirements of the Companies Act, 2013.

4. Our audits of these financial statements were conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audits were not planned and performed in connection with any transactions to identify matters that may be of potential interest to third parties.

5. Pursuant to the requirements, it is our responsibility to obtain reasonable assurance and form an opinion based on our audit and examination of books and records as to whether the Corporation has complied with the matters contained in paragraphs 3 and 4 of Schedule C of the Regulations read with regulation 3 of Regulations.

6. We conducted our examination of the statement or documents or information provided to us in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) (the ‘Guidance Note) issued by the Institute of Chartered Accountants of India (‘ICAI). The Guidance Note requires that we comply with the independence and other ethical requirements of the Code of ethics issued by the ICAI. We have complied with the relevant applicable requirements of the Standard on Quality Control (‘SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services engagements.

Opinion

7. In accordance with information and explanations given to us and to the best of our knowledge and belief and based on our examination of the books of account and other records maintained by the Corporation for the year ended March 31^st, 2024, we certify that:

1. We have reviewed the Management Report attached to the Standalone Financial Statements for year ended 31^st March 2024 and on the basis of our review, there is no apparent mistake or material inconsistencies with the Standalone Financial Statements.
2. Based on management representations and compliance certificates submitted to the Board of Directors by the officers of the Corporation charged with compliance and the same being noted by the Board, nothing has come to our attention that causes us to believe that the Corporation has not complied with the terms and conditions of registration as stipulated by the IRDAI.

c) We have verified the cash balances to the extent considered necessary and the securities relating to the Corporation loans and investments as of 31^st March 2024 have been verified on the basis of confirmations received from the Custodian and/ or Depository Participants appointed by the Corporation, as the case may be, subject to paragraph mentioned below: i. No confirmation was available from Custodian in respect of Investment in Debentures & Preference Shares of _ 6,589 thousand (16 Scrips), 0.004 thousands (Four Scrip Written down to 1/- and One Scrip Written Down to Zero in earlier years) respectively. ii. Bonds & Preference Shares of 1300 thousand (1 Scrip) and 0.001 thousand (1 scrip written down to 1/-) respectively, actually held by the Custodian of the Corporation is in excess vis a vis books of the Corporation. iii. Further the Loans as reported under Schedule 9 of the Standalone Financial Statements are subject to confirmations/ reconciliation.

8. The Corporation is not a trustee of any trust; however, the Corporation is acting as manager of Terrorism and Nuclear Pool.

9. No part of the assets of the Policyholders Funds has been directly or indirectly applied in contravention to the provisions of the Insurance Act relating to the application and investments of the Policyholders Funds.

Restriction to use.

10. This certificate is addressed to and provided to the Board of Directors of the Corporation, solely for inclusion in the Annual accounts of the Corporation as per the Regulations and should not be used by any other person or for any other purpose. We have no responsibility to update this certificate for events and circumstances occurring after the date of this certificate. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

for KASG & Co.	for Mehra Goel & Co.
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 002228C	ICAI Firm Registration Number: 000517N
CA. Bharat Goel	CA. Vaibhav Jain
Partner	Partner
Membership No.: 060069	Membership No.: 515700
UDIN: 24060069BKGYXW4792	UDIN: 24515700BKBXZI2400
Place: Mumbai	Place: Mumbai
Date: 28-05-2024	Date: 28-05-2024

"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OFG ENERAL INSURANCE CORPORATION OF INDIA

(Referred to in paragraph 24(l) in section "Report on other legal and regulatory Requirements" forming part of the Independent Auditors report dated 28^th May 2024)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of General Insurance Corporation of India ("the Corporation") as at 31^st March 2024 in conjunction with our audit of the Standalone Financial Statements of the Corporation for the year ended on that date.

Managements Responsibility for Internal Financial Controls

2. The Corporations management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Corporation considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Corporations policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013, the Insurance Act, the IRDAI Act, the Regulations and orders/directions prescribed by the Insurance Regulatory and Development Authority of India (‘IRDAI) in this behalf and current practices prevailing within the insurance industry in India.

Auditors Responsibility

3. Our responsibility is to express an opinion on the Corporations internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.

Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.

4. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

5. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. Commensurate to the size and nature of the business, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Corporations internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A Corporations internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A Corporations internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporations assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

8. The system of internal financial controls over financial reporting with regard to specific controls pertaining to audit trail feature were not made available to us to enable us to determine if the Corporation has established adequate internal financial control over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2024.

9. We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Corporation, and the disclaimer does not affect our opinion on the financial statements of the Corporation.

10. In our opinion, commensurate with the size & nature of business, the Corporation has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Corporation considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

11. The actuarial valuation of liability in respect of Claims Incurred but not Reported (IBNR) and those Incurred but not Enough Reported (IBNER) as at March 31^st, 2024 is as certified by the Corporations Appointed Actuaries and has been relied upon by us as mentioned in paragraph 11 of our audit report on the Standalone Financial Statements for the year ended March 31^st, 2024. Accordingly, our opinion on the internal financial controls over financial reporting does not include reporting on the operating effectiveness of the managements internal controls over the valuation and accuracy of aforesaid actuarial valuation.

for KASG & Co.	for Mehra Goel & Co.
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 002228C	ICAI Firm Registration Number: 000517N
CA. Bharat Goel	CA. Vaibhav Jain
Partner	Partner
Membership No.: 060069	Membership No.: 515700
UDIN: 24060069BKGYXW4792	UDIN: 24515700BKBXZI2400
Place: Mumbai	Place: Mumbai
Date: 28-05-2024	Date: 28-05-2024

"ANNEXURE C" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OFG ENERAL INSURANCE CORPORATION OF INDIA

(Referred to in paragraph 25 forming part of the Independent Auditors report dated 28^th May 2024)

With regards to the Directions issued by the Comptroller and Auditor General of India under section 143(5) of the Companies

Act, 2013, based on our audit, we report hereunder on the action taken and the financial impact on the accounts of the

Standalone Financial Statements of the Corporation except for Dubai branch whose auditors have not commented on directions and sub directions of C&AG except for Labuan branch and London branch whose auditors have not commented on directions and sub directions of C&AG.

Sr. No.	Direction under Section 143(5) of the Companies Act 2013	Action taken and financials impact
1	Whether the Corporation has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated	The Corporation has system in place to process all the accounting transactions through IT systems except for –
		1. Estimations of Premium and Commission:
		The basis for premium and commission estimations are calculated manually based on the data extracted from the IT system and then the same is entered in the IT Accounting system after verification, therefore there is no financial impact.
		2. Unexpired Risk Reserve (URR):
		The provision of URR is calculated manually based on the data extracted from the system and then the same is entered in the IT system after verification, therefore there is no financial impact.
		3. Provision for Doubtful Debts:
		The provision is calculated (as per policy of the company) manually based on the data extracted from the IT system and then the same is entered in the IT Accounting system after verification, therefore there is no financial impact.
		4. Outstanding Loss Reserve (OSLR):
		The OSLR is computed manually based on intimations/Statement of Accounts received and then after such computation the same is entered in the IT Accounting system, therefore there is no financial impact.
		5. Incurred but not reported, incurred but not enough reported and premium de_ciency reserve (IBNR, IBNER and PDR):
		These are computed manually by appointed actuaries based on data extracted from IT system and then after receiving of actuaries reports by the GIC, the same is entered in the IT Accounting system, therefore there is no financial impact.
		6. Retro Recovery Claims:
		It is understood that claims recovery is processed manually and the data is maintained offine. After verification it is entered in the IT system, therefore there is no financial impact.

2	Whether there is any restructuring of an existing loan or cases of waiver/write off debts/loans/interest etc. Made by a lender to the Corporation due to the	1. Not Applicable, as the Corporation does not have any outstanding borrowed money.
	Corporations inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for?	2. The company has given loans to state government, central government, industrial undertaking and loans to employees amounting to Rs 151,89,40 thousand as disclosed in schedule 9 of the standalone financial statement.
	In case lender is a government company, then its direction is also applicable for statutory auditor of the lender company.	There is no restructuring of any loan however corporation has provided provision amounting to Rs 47,20,01 thousand as per prudential norms. __
3	Whether funds (grants/subsidy etc.) Received/ receivable for specific schemes from central/state government or its agencies were properly accounted for/utilized as per its term and conditions? List the cases of deviation.	Not Applicable. The Corporation is a re-insurance Company, and it does not receive any funds directly from State/Central Agencies for specific schemes.

With respect to the additional directions issued by Comptroller and Auditor General of India under section 143 (5) of the Companies Act, 2013, based on our audit, we report hereunder on the action taken and the financial impact on the accounts of the Standalone Financial Statements of the Corporation:

Sr. No.	Additional Direction under Section 143 (5) of the Companies Act 2013	Action taken and financials impact
1	Number of titles of ownership in respect of CGS/SGS/ Bonds/Debentures etc. Available in physical/demat form and out of these, number of cases which are not in agreement with the respective amounts shown in the Companys books of accounts may be verified and discrepancy found may be suitably reported.	The Central Government Securities and State Government securities balances are tallied as per the record of custodian vis a vis books of accounts of the Corporation.
		Further in case of bonds/debentures/equities/preference shares, no confirmations or other documentary evidence was available regarding actual custody of the following:
		16 Scrip of investments in debenture of 6,589 thousand as per books of accounts (The Corporation has fully provided for these amounts in earlier years, hence no financial impact) 5 Scrip of investments in Preference Shares of 0.004 thousand as per books of accounts (Four Scrip Written down to 1/- and One Scrip Written Down to Zero in earlier years, hence no financial impact) Since all the above have either been fully provided or written down, the same has no financial impact.
		Following Investments held by the Custodian of the Corporation is in excess of number vis a vis held as per the books of the Corporation.
		1 Scrip of Bonds having book value of 1300 thousand (Fully provided by management) and one scrip of bond having book value of Nil.
		1 Scrip of Preference Shares having book value of 0.001 thousand (Written down to 1/-)

2	Whether Investment Policy exists and includes mechanism to review investment portfolios and whether stop loss limits are prescribed? If yes, whether it was adhered to? If not in existence or not adhered to, details may be given.	The Annual Investment Policy exists which includes mechanism to review investment portfolios and stop loss limits are prescribed in the policy which have been adhered to.
		The Investment Policy is reviewed annually and also half-yearly as per IRDAI Regulations._ The Investment Portfolios are reviewed every quarter and the performance of the portfolio is also presented to the Board at its quarterly meetings._ Specific Stop Loss Guidelines have been introduced in the Investment Policy w.e.f _ 30.1.2023._ Over and above the Stop Loss Guidelines, there exists an Equity Review Policy._ As per the Stop Loss Guidelines, a thorough review of each company is being done and recommendations to HOLD OR EXIT are considered after detailed analysis of the company/sector as an ongoing process._
		The Corporation has been proactive in vigorously following the guidelines of both the Equity Review Policy and Stop loss guidelines to come out of undesirable equity investments._

for KASG & Co.	for Mehra Goel & Co.
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 002228C	ICAI Firm Registration Number: 000517N
CA. Bharat Goel	CA. Vaibhav Jain
Partner	Partner
Membership No.: 060069	Membership No.: 515700
UDIN: 24060069BKGYXW4792	UDIN: 24515700BKBXZI2400
Place: Mumbai	Place: Mumbai
Date: 28-05-2024	Date: 28-05-2024

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143_6__b_ OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF GENERAL INSURANCE CORPORATION OF INDIA FOR THE YEARENDED 31 MARCH 2024

The preparation of financial statements of GENERAL INSURANCE CORPORATION OF INDIA for the year ended 31 March 2024 in accordance with the financial reporting framework prescribed under the Insurance Act, 1938 read with Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of the Insurance Companies) Regulations, 2002 and the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 28 May 2024.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of

GENERAL INSURANCE CORPORATION OF INDIA for the year ended 31 March 2024 under section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

Based on my supplementary audit, I would like to highlight the following significant matters under section 143(6)(b) of the Act which have come to my attention and which in my view are necessary for enabling a better understanding of the financial statements and the related audit report:

A. Receipt and Payment Account for Cash Flow Statement for the year ended 31 March 2024

(i) Cash Flow from Operating Activities

Net Cash from/(used in) Operating Activities: Rs 107437899 (Rs 000) Cash Flow from investing Activities

Net cash from/(used in) Investing Activities: Rs (-) 85145072 (Rs 000)

Net Cash from operating activities includes Interest (Rs5442.81 crore) and Dividend (Rs1083.96 crore) totaling Rs6526.77 Crore received by the Company during the year.

As per Accounting Standard 3 (AS-3), Cash Flow Statements, "Cash flows from interest and dividends received and paid should each be disclosed separately. Cash flows arising from interest paid and interest and dividends received in the case of a financial enterprise should be classified as cash flows arising from operating activities. In the case of other enterprises, cash flows arising from interest paid should be classified as cash flows from financing activities while interest and dividends received should be classified as cash flows from investing activities." Further, as per the format prescribed for Receipts and Payments Account in Annexure III of IRDAI Master Circular on preparation of financial statements of General Insurance Business (October 2012), Rents/Interests/Dividends received are to be classified as Cash flows from investing activities and disclosed separately.

However, the Company has included interest and dividend received as cash flow from operating activities instead of investing activities and not disclosed the cash flows from these sources separately. This has resulted in overstatement of cash flows from operating activities and understatement of cash flows from investing activities by Rs6526.77 crore.

(ii) Cash and cash equivalents at the end of the period: Rs 243888848 (Rs 000)

Net cash from/(used in) Investing Activities: Rs (-) 85145072 (Rs 000)

As per Accounting Standard 3, Cash Flow Statements Cash comprises cash on hand and demand deposits with banks. The cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. It further states that cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition.

However, the Company has included Fixed Deposits with Banks amounting to Rs5791.96 crore with maturity dates of more than three months in Cash and Cash Equivalents. As the above deposits cannot be considered as Cash and Cash Equivalents, Cash and Cash Equivalents are overstated with corresponding understatement of cash flows from investing activities by Rs5791.96 crore.

B. OTHER COMMENTS

Non-compliance with Insurance Act, 1938

As per sub-section 3 of Section 11 of the Insurance Act,1938 in case of company, the accounts and statements referred to in sub-section (1) shall be signed by the chairman, if any, and two directors and the principal officer of the company.

Audit, however, observed that the Financial Statements of the company for the year ended 31 March 2024 have been signed by Chairman-cum-Managing Director and one other Director only. As such, the Company has not complied with the

Insurance Act, 1938.

	For and on behalf of the
	Comptroller & Auditor General of India
	(Biren D. Parmar)
	Director General of Audit (Shipping), Mumbai
Place: Mumbai
Date: 09.08.2024