new india assurance company ltd share price Auditors report

To

The Members of

The New India Assurance Company Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Standalone Financial statements of The New India Assurance Company Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Revenue Accounts of Fire, Marine and Miscellaneous Insurance Business (collectively known as Revenue Accounts), Profit and Loss Account and the Receipts and Payments Account for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements"), in which are incorporated the returns for the year ended on that date:

a) From 43 Regional offices (including 8 LCBOs, 2 Legal Hubs, 1Auto Hub & Gift City) (in which are incorporated returns of 473 Divisional offices), audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013;

b) From 7 Foreign Branches (including 2 Foreign Run-off offices) and 7 Foreign Agency offices audited by local Auditors appointed by the Company; and

c) From 2 Foreign Branches and 1 Foreign Run off office which are unaudited, prepared and furnished to us by the Management.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid Standalone financial statements give the information required, in accordance with the Insurance Act, 1938, as amended (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, as amended (the "IRDAI Financial Statements Regulations"), orders / directions / circulars issued by the Insurance Regulatory and Development Authority of India (the "IRDAI") and the Companies Act, 2013 ("the Act"), to the extent applicable, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to Insurance companies:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2023;

b) in the case of Revenue Accounts, of the Operating Profit in so far as it relates to the Fire, Marine and Miscellaneous business for year ended on that date;

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

d) in the case of the Receipts and Payments Account, of the Receipts and Payments for the year ended on that date.

Basis for Qualified Opinion

a) Balances due to/from persons or bodies carrying on insurance business including Reinsurers are subject to confirmation, reconciliation and records relating to old balances are being compiled by the Company. [Refer Note 10(a) of Schedule 16B]

b) Impact of overall reconciliation in respect of balances pertaining to Co-insurance business is to be dealt with in accounts. [Refer Note 10(d) of Schedule 16B]

c) Balances of Inter office accounts, control accounts, various direct and indirect tax related accounts and certain other accounts at certain offices are pending for reconciliation/confirmation and consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. [Refer Note 10 (e, f, g, h and j) and 22(a) of Schedule 16B]

d) The company has recognized MAT credit relating to earlier years to the extent of availment amounting to t 248,02.43 Lakhs, realization of which is dependent on its being finally successful in respect of matters pending at various judicial levels. [Refer Note 5(b) Schedule 16 B]

e) The impact on account of reconciliation relating to various accounts and balance under confirmation with respect to compliance of tax laws which may arise out of such reconciliation, if any, is not ascertainable and cannot be commented upon. [Refer Note 10(i) of Schedule 16B] Overall impact of the above para (a) to (e) above and the consequential effects on the state of affairs of the Company as at March 31, 2023, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Account for the year ended on that date are not ascertainable and cannot be commented upon.

We conducted our audit in accordance with the Standards on Auditing (SAs) 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 (ICAI) 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 made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of Matter

We invite attention to the following:

a) Note No.4 of Schedule 16B regarding accounting of arrears of wage and corresponding incremental liabilities relating to Post-Employment benefits on account of wage revision amounting to Rs. 3445,13.93 Lakhs for the period ended March 31, 2023 under "Expenses other than those related to insurance business" through Profit & Loss Account instead of "Employees remuneration" under "Operating Expenses related to insurance business" in the respective Revenue accounts, as permitted by IRDAI.

b) Note No. 3 of Schedule 16B regarding Un-amortized Pension Liability amounting to Rs. 410,14.00 Lakhs as permitted by IRDAI Circular.

c) Note No. 26 of Schedule 16B regarding strengthening of Internal controls and Internal audit specially in area of data input and validation in software and Reinsurance accounts.

d) Note No. 24 of Schedule 16B specifying that the management is currently in process of identifying enterprises which have been providing goods and services to the Company which qualify under the definition of micro and small enterprises as defined under Micro, Small and Medium Enterprise Development Act, 2006 and disclosure in respect of amount payable to such Micro and Small Enterprises as at March 31, 2023 has not been made in the Standalone financial statements.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, 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 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.

Sr. No. Key Audit Matters	Auditors Response
1. Claim Provisioning	Principal Audit Procedures performed
Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement, where management estimate is involved based on the surveyors report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regards to the claims provision, the claim department will make provision for claims upon claim intimation and subsequently revise basis the surveyors immediate loss assessment reports, advocate advice pertaining to MACT / disputed cases, communications from co-insurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information.	• The audit matters for verification of claims provisioning are handled at the regional and divisional offices of the Company. The component auditors while auditing the claim provision based on the operational guidelines of the Company relating to claim processing, have performed test of controls, test of details and analytical review procedures on the outstanding claims. They have verified the claim provision with the surveyors claim estimate, advocate advice, co-insurer leader communication and the Companys feedback on the same. For all old outstanding large claims, fresh estimates from surveyors were called for by the Company and the claim provisions were revised accordingly.
A range of methods are used to determine these liabilities. Underlying these methods are a number of assumptions relating to expected settlement amount and settlement pattern of claims.	• For the claim cases which has been incurred but not reported and cases where claim has been reported but not enough reported, these cases have been captured by the actuary appointed by the Company. 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, 2023, is as certified by the Companys Appointed Actuary and we had relied upon on the appointed actuarys certificate in this regard with respect to the claim amounts and the related liability.
	We have relied upon the work carried out by the respective component auditors in relation to the audit of verification of claim provisions and on the work carried out by the appointed actuary with respect to provision of claims incurred but not reported and claims incurred but not enough reported.

 

2. Strengthening of Internal control System and Internal	Principal Audit Procedures
Audit required by the Company - On the basis of selective checks carried out during the course of our audit and according to the information and explanation given to us, internal control weaknesses of material nature have been identified as at March 31, 2023 with respect to:	• We have designed our audit procedures to assess the Companys control risk. We had conducted control test to test the effectiveness of a control used by the Company to prevent or detect material misstatements. Based on the control test, control weaknesses were identified in areas of reconciliation of various receivable and/or payable balances, etc.
a) Confirmation and reconciliation of various balances relating to co insurers, reinsurers, inter office accounts and other control accounts are pending and are at various stages;	• We have considered the reports issued by the professional consultant with respect to review of operational effectiveness of internal controls for Risk Control matrix of the Company.
b) Strengthening of process required relating to audit of health claims processed by TPA which is conducted by the offices of the Company.
	• Audit of health-related claims processed by TPAs are required to be audited as per policy framed by the Company, however it has been unable to carry out audit of adequate number of claims as per its policy.
	Hence these areas are highlighted in paragraph of opinion, emphasis of matter and opinion on internal control with reference to standalone financial statements in the standalone Independent Auditors Report.

 

3 Evaluation of uncertain tax positions	Principal Audit Procedures Performed
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.	• We have evaluated the appropriateness of the design and tested the operating effectiveness of the managements controls over the tax litigation matters;
The Company has disputes pending at various levels of tax authorities over the past several years. (Refer Note 1 of Schedule 16C to the Standalone financial statements).	• Obtained from the management and perused details of completed tax assessments and demands for the year ended March 31, 2023;
	• Reviewed the managements underlying assumptions in estimating the tax provision, the possible outcome of the disputes, legal precedence and other rulings in evaluating managements position on these uncertain tax positions.
	• Relied upon the management judgements, industry level deliberations and estimates for possible outflow and opinion of internal experts/ External Tax Advisors/ lawyers of the Company in relation to such disputed tax positions.

Other Matters

a) We did not audit the financial statements and other financial information of 43 Regional offices (including 8 LCBOs, 2 Legal Hubs, 1Auto Hub & Gift City), 473 Divisional offices, 7 Foreign Branches (including 2 Foreign Run-off offices) and 7 Foreign Agency offices, included in the Standalone financial statements of the Company whose financial statements reflect total assets of Rs. 32,54,907.10 Lakhs as at March 31, 2023 and total revenues of Rs. 37,53,803.21 Lakhs for the year ended on that date, as considered in the Standalone financial statements. The financial statements / information of these Branches/offices have been audited by the other auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these Branches/offices, is based solely on the report of such other auditors.

b) We have relied on the financial information of 2 Foreign Branches and 1 Foreign Run off office included in the standalone financial statements of the Company whose financial information reflect total assets of Rs. 42353.64 lakhs as at March 31, 2023 and total revenues of Rs. 6,368.84 lakhs for the year ended on that date, which have been included based on unaudited financial information. Our opinion in respect thereof is solely based on the management certified information.

c) The actuarial valuation of liabilities in respect of Claims Incurred but Not Reported (IBNR), Incurred but Not Enough Reported (IBNER) and Premium Deficiency Reserve (PDR), is the responsibility of the Companys Appointed Actuary (the "Appointed Actuary"). The actuarial valuation of these liabilities that are estimated using statistical methods as at March 31, 2023 have been certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuarys certificate in this regard for forming our opinion on the valuation of liabilities for outstanding claims reserve and PDR, as contained in the standalone financial statements of the Company.

d) The standalone financial statements of the Company for the year ended March 31, 2022 were audited by the joint auditors, one of which is predecessor audit firm and have issued their modified opinion dated May 23,2022 on such financial statements.

Our opinion is not modified in respect of these matters.

Information other than the financial statements and Auditors report thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report & Management Discussion and Analysis and Business Responsibility Report but does not include the Standalone financial statements and our auditors report thereon. The other information as above is 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 will 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 identified above when it becomes available 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 other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of 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 receipts and payments of the Company, in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with relevant rules issued thereunder, the requirements of the Insurance Act, the IRDAI Financial Statements Regulations and the orders/directions and circulars issued by the IRDAI in this regard, to the extent applicable and in the manner so required.

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 Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, management is responsible for assessing the Companys 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 Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone 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 Standard on Auditing 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.

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

• Identify and assess the risks of material misstatement of the Standalone 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place 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 managements 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 Companys 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 standalone 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 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.

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 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

1. As required by the IRDAI Financial Statements Regulations, we have issued a separate certificate dated May 29, 2023 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDAI Financial Statements Regulations.

2. As required by IRDAI Financial Statement Regulations and Section 143 (3) of the Act, we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account have been maintained by the Company, so far as it appears from our examination of those books and proper returns both audited and unaudited from Regional Offices, Divisional Offices, branches and other offices, not visited by us, have been received and these were adequate for the purpose of our audit.

c) The reports of the Regional Auditors consolidating the Divisional Auditors report, Reports of foreign branches and foreign agency offices/ Run-off office, audited under section143(8) of the Act by the respective component auditors have been forwarded to us and have been properly dealt with by us in preparing our report in the manner considered necessary by us.

d) The Balance Sheet, the Revenue Accounts, Profit and Loss Account, and the Receipts and Payments Account dealt with by this Report are in agreement with the books of account and with the returns received from offices not visited by us.

e) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid Standalone financial statements have been prepared in accordance with the requirements of the Insurance Act, the Insurance Regulatory and Development Act, 1999 and the Companies Act, 2013 to the extent applicable and in the manner so required.

f) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder.

g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

h) As per notification no. G.S.R 463(E) dated June 5, 2015, the Government Companies are exempted from the provisions of section 164(2) of the Act, accordingly, we are not required to report whether any of the directors of the Company is disqualified in terms of provisions contained in the said section.

i) The accounting policies selected by the company are appropriate and are in compliance with the applicable Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder and with the Accounting Principles as prescribed in the IRDAI Financial Statements Regulations and orders or directions issued by the Insurance Regulatory and Development Authority, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above.

j) 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, 2023, have been duly certified by the Companys Appointed Actuary and relied upon by us. The Appointed Actuary has also certified that the assumptions considered by him for such valuations are in accordance with guidelines and norms prescribed by the Insurance Regulatory and Development Authority of India and the Actuarial Society of India in concurrence with the IRDAI.

k) As per the information and explanations provided to us, the investments have been valued in accordance with the provisions of the Insurance Act, IRDAI Financial Statements Regulations and orders/ directions issued by IRDAI in this regard.

l) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure I".

3. With respect to the other matters to be included in the Auditors Report in accordance with the requirement of section 197(16) of the Companies Act 2013, as amended, we report that the provisions of section 197 of the Act are not applicable to the company vide notification No. GSR 463(E) dated 5th June 2015. Hence reporting u/s 197(16) of the Act is not required.

4. 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, as amended, 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 standalone financial statements-Refer Note 5(c) of Schedule 16B and Note 1 of Schedule 16C to the Standalone financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. The liability for Insurance Contracts, is determined by the Companys Appointed Actuary and is covered by the Appointed Actuarys certificate, referred to in Other Matter paragraph above, on which we have placed reliance; and the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii) There were no amounts which were 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, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 (Refer Note 28(a) of Schedule 16B)

b) The Management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), 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 (Refer Note 28(b) of Schedule 16B); and

c) Based on 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 final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note no. 33 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the dividend proposed is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.

5. As required under section 143(5) of the Companies Act, 2013, based on our audit as aforesaid, we give in the "Annexure II", a report on the directions including additional directions issued by the Comptroller and Auditor General of India (C&AG), action taken thereon and its impact on the accounts and financial statements of the Company.

For R. Devendra Kumar & Associates	For Kailash Chand Jain & Co.
Chartered Accountants	Chartered Accountants
FRN: 114207W	FRN: 112318W
Neeraj Golas	Saurabh Chouhan
Partner	Partner
M. No.: 074392	M. No.167453
UDIN: 23074392BGXJOW7433	UDIN: 23167453BGRWAP6919
Place : Mumbai
Date : May 29, 2023

ANNEXURE I TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(l) under "Report on Other Legal and Regulatory Requirements" of our report of even date)

Report on the Internal Financial Controls with reference to Standalone Financial Statements under clause (i) of subsection 3 of section 143 of the Companies Act, 2013 ("the Act")

Qualified Opinion

We have audited the internal financial controls with reference to standalone financial statements of The New India Assurance Company Ltd. ("the Company") as of March 31, 2023, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified as at March 31,2023:

a) Confirmation and reconciliation of various balances relating to co-insurers, reinsurers, Reinsurance Brokers, various tax related accounts, control accounts and other accounts, are pending and are at various stages of reconciliation/adjustments. Non- compliance of tax laws which may arise out of such reconciliation;

b) Adequate coverage of audit of health-related claims processed by TPAs to be conducted by the respective offices of the Company in accordance with the policy of the Company and

c) We are informed that the management has not carried out the assessment of effectiveness of the Entity level controls and the effectiveness of such controls at foreign offices of the company. We have also not been able to carry out any procedures in these respect as the relevant information and access was not made available to us.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control with reference to standalone financial statements, such that there is a reasonable possibility that a material misstatement of the companys financial statements will not be prevented or detected on a timely basis.

In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors referred to in the Other Matters paragraph below, except for the possible effects of the internal control weaknesses described above on the achievements of the objectives of the control criteria, the company has maintained , in all material respects , adequate internal financial control with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as of March 31,2023, based on "the internal control with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India".

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2023, Standalone financial statements of the Company, and these material weaknesses affect our opinion on the Standalone financial statements of the Company.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on "the internal control with reference to standalone financial statements criteria established by the Company 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" ("the Guidance Note"). 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 Companys 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.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 with reference to standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements , 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 financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the Companys internal financial controls system with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financial statements

A Companys internal financial control with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control with reference to standalone financial statements 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 company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to standalone financial statements

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

Other Matter

a) Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the Internal Financial Controls with reference to Financial Statements in so far as it relates to 43 Regional offices (including 8 LCBOs, 2 Legal Hubs, 1Auto Hub & Gift City ), 473 Divisional offices, audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013, 7 Foreign Branches (including 2 Foreign Run-off offices) and 7 Foreign Agency offices audited by local Auditors appointed by the Company, is based on the corresponding reports of the other auditors which has been sent to us and has been properly dealt with in preparing this report in the manner considered necessary by us.

b) In the case of 2 Foreign branches and 1 Foreign run off office which are unaudited, the relevant procedures could not be performed by us since the access to information was not available.

c) The actuarial valuation of liabilities in respect of Claims Incurred but Not Reported (IBNR), Incurred but Not Enough Reported (IBNER) and Premium Deficiency Reserve (PDR), is the responsibility of the Companys Appointed Actuary (the "Appointed Actuary"). The actuarial valuation of these liabilities that are estimated using statistical methods as at March 31, 2023 have been certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuarys certificate in this regard for forming our opinion on the valuation of liabilities for outstanding claims reserve and PDR, as contained in the standalone financial statements of the Company. Accordingly, our opinion on the internal financial controls with reference to standalone financial statements does not include reporting on the adequacy and operative effectiveness of the internal controls over the valuation and accuracy of the aforesaid actuarial liabilities.

Our opinion is not modified in respect of these matters.

For R. Devendra Kumar & Associates	For Kailash Chand Jain & Co.
Chartered Accountants	Chartered Accountants
FRN: 114207W	FRN: 112318W
Neeraj Golas	Saurabh Chouhan
Partner	Partner
M. No.: 074392	M. No.167453
UDIN: 23074392BGXJOW7433	UDIN: 23167453BGRWAP6919
Place : Mumbai
Date : May 29, 2023

ANNEXURE II TO THE INDEPENDENT AUDITORS REPORT

(Referred to in Paragraph 5 under "Report on Other Legal and Regulatory Requirements" of our report of even date)

Based on the verification of records of The New India Assurance Company Ltd. (the "Company") and based on information and explanations given to us, we give below a report on the directions including additional directions issued by the Comptroller and Auditor General of India in terms of the section 143(5) of the Act:

Sr No. Directions under Section 143(5) of Companies Act, 2013	Auditors Comment
1 Whether the company has system in place to process all the accounting transactions through IT system Rs. 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.	As per the information and explanations furnished to us, the company has an Enterprise Resource Planning ("ERP") system in the name of "CWISS" to process the accounting transactions except for:
	a) Facultative Inward business where the process of system automation is being implemented. In case of Marine Hull, Marine Cargo and Aviation the same is under testing stage and as informed to us, in F.Y 2023-24 the modules will get implemented, after which reconciliation will be done through system of the Company. Further, Non-Proportional Treaty Accounting automation is also under testing stage and as informed to us, the same will also be implemented in F.Y. 2023-24.
	b) Pradhan Mantri Fasal Bima Yojana (PMFBY) where it is understood that though the systems are in place the claims related to the PMFBY are processed manually.
	It is informed to us that Ministry of Agriculture and Farmers Welfare are planning for integration of National Crop Insurance Portal (NCIP) with the IT Systems of "PMFBY - Implementing Insurance Companies" for seamless flow of data and "auto calculation" of claims in NCIP. As per the requirement of the Ministry, the Company has provided them their IP address for whitelist for inflow/outflow of data to and from NCIP. Once the integration is completed, the Company will redesign the system for claim processing for PMFBY.
	c) IFSC GIFT City office, Gandhinagar is the only office in India rendering the reinsurance service in foreign currency, having the Accounts in Tally software. The transactions are reviewed/ authorised by region-in charge and approved as per the financial authority established in the Company. As informed to us, the Company has initiated implementation of accounting software wherein underwriting module for FAC has been commenced and testing of remaining modules are under process to have the Reinsurance driven software start from the next financial year.
	d) The Process of compilation of Financial statements of the Company involves movement of trial balances in an unconnected mode and involves manual compilation from the following softwares to HO INFACS system which is used for the purpose of consolidation of above trial balances:
	i) Investment: CREDENCE (Excel)
	ii) Reinsurance: RAMS (Excel).
	iii) Foreign Branches and Agency: decentralized system at each location. Consolidation is done at HO level in excel.
	iv) ORACLE Financials: at ROs, output file of oracle is used as input for INFACS.
	v) HO INFACS vi) GIFT City: Standalone System in tally, output file is generated in excel.
	There is a need of automation of Process of compilation of Financial statements to ensure complete data integrity.
2 Whether there is any restructuring of an existing loan or cases of waiver/write off of debts /loans/interest etc. made by a lender to the company due to the companys inability to repay the loan Rs. If yes, the financial impact may be stated. Whether such cases are properly accounted for Rs. (in case, lender is a government company, then its directions is also applicable for statutory auditor of lender company)	Not Applicable.
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 Rs. List the cases of deviation.	The Company received part of subsidy relating to Prime Minister Fasal Bima Yozna (PMFBY) / Rashtriya Swasthya Bima Yojana (RSBY) and various other schemes relating to insurance from Central and State agencies. Funds received/receivable under PMFBY/ RSBY scheme from Central/State agencies were accounted for/utilised as per its terms and conditions. However funds received/receivable from Central/ various State Governments under PMFBY scheme are being reconciled with subsidiary records /Government Portal data and in respect of RSBY Scheme , an amount of Rs. 4809 lakhs is receivable from State Government, Patna and Central Government which is related to F.Y 16-17 and scheme was withdrawn by the Government in the year 18-19. The matter is subjudice and pending with NGRC, New Delhi.

 

For R. Devendra Kumar & Associates	For Kailash Chand Jain & Co.
Chartered Accountants	Chartered Accountants
FRN: 114207W	FRN: 112318W
Neeraj Golas	Saurabh Chouhan
Partner	Partner
M. No.: 074392	M. No.167453
UDIN: 23074392BGXJOW7433	UDIN: 23167453BGRWAP6919
Place : Mumbai
Date : May 29, 2023

Additional directions issued by C&AG of India as applicable to The New India Assurance Company Limited for the year 2022-23

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/ State Government securities balances are tallied as per the books of accounts of the Company with the custodian statements. In case of Bonds/ Debenture/ Equities/Preference Shares balances are tallied as per the books of accounts of the Company and custodian statement except for the following differences:
	a) In case of debentures, securities of 2 Companies having face value of Rs. 37.74 Lakhs (number - 20,496) not reflecting in custodian statement, these securities have been fully provided/written off;
	b) In case of debentures/bonds/preference, shares of 2 companies having book value of Rs. 314.32 Lakhs (number - 3,73,988) are lying with official liquidator/ debenture trustees and the same has been fully provided/written off.
	c) In case of equity shares of 5 Companies having book value of Rs. 12.04 Lakhs (number - 6747) not reflecting in custodian statement, these securities have been fully provided for;
	d) 39,79,847 equity shares of 3 Companies and 3,52,261 Debentures of 6 Companies, these are reflecting in custodian statement and not in books of the Company.
	1,235 equity shares of 4 companies are not reflecting in custodian statement. The Company has not received any interest/dividend on the above-mentioned investments.
	The Company have been receiving dividend from various Companies since previous years, which are not reflecting as investment both in the books of accounts of the company and statement of its custodian. These dividends amounting to Rs. 2.58 Lakhs as on March 31, 2023 are shown as liability and is taken to income after three years from the respective year of receipt as per the Companys accounting practice.
2 Whether investment policy exists and includes mechanism to review investment portfolios and also whether stop loss limits are prescribed Rs. If yes, whether it was adhered to Rs. if not in existence or not adhered to, details may be given.	An investment policy is framed for each financial year and the same is approved by the Board. Further, a stop loss/ exit policy has been incorporated in Investment Policy of FY 2022-23. The stop loss policy is adhered to and the shares which satisfy the criteria of stop loss/exit is placed before the in-house investment committee for suitable action.
3 Whether Company has carried out reconciliation exercise for inter-company balances reflected in their financial statements with other PSU insurers and whether confirmation has been obtained from other PSU insurers for balances due from them.	As informed to us, reconciliation and settlement of Coinsurance balances were carried out across all offices throughout the year by the Company. In case where the Company is follower the necessary confirmations are obtained from the lead insurer on periodical basis through various modes, by letter of acceptance/mail confirmation/ agreement in meetings etc.
	In respect of Coinsurance business, the balances with various Co-insurers represents receivable of Rs. 94,880.03 lakhs and payable of Rs. 61971.69 lakhs. The balances having been accounted at net level, the gross receivables/payables have been compiled based on data received from concerned operating offices to the extent of available information.
	The reconciliation of balances relating to PMFBY scheme amounting to Rs. 37077.39 lakhs receivable is also being done at different stages. As regards to other balances, the company is in the process of matching and reconciling at various levels and its overall impact will be dealt with in due course.
	The process of obtaining confirmations of balances relating to PMFBY and other balances is also at different stages and entries remaining to be reconciled based on the confirmation are also being attended to. The age-wise break-up of the outstanding entries including those relating to crop insurance is being compiled in-view of entry-wise break up not being precisely available. The policy-wise details of balances lying in the old accounting system are not available however these balances are netted for the purpose of reconciliation. In respect of PMFBY business, the accounting of transactions has been done to the extent of statement of accounts received with the leaders till the finalisation of Accounts.
	The company has maintained provision of Rs. 98,27.30 lakhs including Rs.45,12.06 lakhs of identified unreconciled debit balances against the net coinsurance balance of Rs. 329,08.33 lakhs as on March 31,2023 which is based on the available information as considered by the management.
	Age-wise break up compiled by the management indicate net debit entries outstanding for more than 5 years amounting to Rs. 61,787 Lakhs, while there are net credit balances within the age group upto 5 years which indicate the open debits and credits remaining to be matched.
	Based on the process conducted by the management at Head office, confirmation to the extent of Rs. 25,003 lakhs could be made available for audit purposes. While in the case of Crop, confirmation at Gross basis were not available.
	The balance appearing in the books of the Company as amount due to/ due from persons or bodies carrying on insurance business including reinsurance business except terrorism Pool and Nuclear Pool with GIC Re are subject to confirmation/ reconciliation and consequential adjustments if any. These balances include Rs. 4,35,329.07 lakhs (Net) Dr. comprising of debit balances of Rs. 6,48,793.04 lakhs and credit balances of Rs. 2,13,463.97 lakhs as per General ledger against which party-wise balances in the records indicate (Dr.) of Rs. 5,56,800.94 lakhs relating to 424 parties and (Cr.) of Rs. 1,21,471.88 relating to 438 parties. Terrorism Pool balance as on March 31,2023 stands at Rs. 2,55,305.37 lakhs and Nuclear Pool balance at Rs. 16,639.33 Lakhs and MCET Pool stands at Rs. 89.22 lakhs.
	Precise gross debit and gross credit balances against each of such parties and age-wise analysis of these balances are also being compiled. The Company has maintained a provision of Rs. 14,744.96 Lakhs as on March 31, 2023, towards doubtful debts as a prudent measure.
	Refer Note no. 10 (a) and (d) of Schedule 16B of the Standalone Financial Statements for reconciliation related matter with respect to Reinsurance and Coinsurance balances. We have issued modified opinion in this Independent Audit Report with regards to these matters.
	4 Whether entire input tax credit (ITC) available on GST portal The Company avails GST input credit only on the basis of in respect of the company has been availed within prescribed valid tax invoice at the time of making payment of invoices. It time limits. has a process of not availing the ineligible GST input credits even if the same is reflecting on the GST portal.
	The Company claims the input credit with respect to GST paid on RCM which constitutes the significant portion of the entire GST input credit of the Company, in the month of payment and the same is claimed through the system automatically.
	For a portion of the expenses, where input is claimed based on the valid invoices received from the suppliers, necessary validation checks are incorporated in the system, and on compliance of the validations the system allows for claiming input. Input GST is claimed in respect of those invoices for which actual payment has been made. Input is not claimed on those invoices lying unpaid, as the same can be availed up to September 30, 2023, for those invoices raised during the F.Y 2022-23. Hence the input credit in respect of such unpaid invoices would be reflected in GSTR 2A but the same would not have been claimed in a particular month. In case of expenses, where input credit is not eligible, the same is being reflected in the GSTR 2A but credit has not been availed. The System has been designed to take care of the aforesaid process.
	A comparison of input credit during the year as per GSTR 2B of GST portal with that input credit availed as per GSTR3B of the books of accounts during the year, indicate excess credit available in GSTR 2B amounting to Rs. 363,49.21 lakhs, out of which an amount of Rs. 115,82.50 lakhs related to invoices accounted for but not paid/ matched as the company avails input credit on paid and matched invoices. This further includes entries relating to ineligible input, input on purchase of capital assets where GST Input is capitalized, Invoices raised by Garages under Reimbursement claims, outstanding claims and expenses where Invoice is yet to be accounted as well as invoices remaining to be received, for which services have been received and GST have been paid by the vendors. The precise amounts in each of the above categories is not ascertained.
	Input Tax credit Rs. 44,21.99 lakhs relating to FY 2021-22 which has been lapsed since it could not be availed and for which provision made by the Company in the accounts and input credit of Rs. 115,82.50 lakhs for FY 2022-23 is still to be availed, follow up needs to be improved with the vendors/parties for payment/proper matching. GST TDS account is required to be reconciled.
	Refer Note no. 10 (f) of Schedule 16B of the Standalone Financial Statements for reconciliation related matter with respect to GST balances. We have issued modified opinion in this Independent Audit Report with regard to this matter.

 

For R. Devendra Kumar & Associates	For Kailash Chand Jain & Co.
Chartered Accountants	Chartered Accountants
FRN: 114207W	FRN: 112318W
Neeraj Golas	Saurabh Chouhan
Partner	Partner
M. No.: 074392	M.No.167453
UDIN: 23074392BGXJOW7433	UDIN: 23167453BGRWAP6919
Place : Mumbai
Date : May 29, 2023

INDEPENDENT AUDITORS CERTIFICATE

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our Independent Auditors report of even date to the Members of The New India Assurance Company Ltd. (‘the Company))

To the Members of

The New India Assurance Company Ltd.

1. This certificate is issued to comply with the provisions of paragraphs 3 and 4 of Schedule C read with Regulation 3 of Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations 2002, as amended (the "IRDAI Financial Statements Regulations").

Managements Responsibility

2. The Companys Board of Directors is responsible for complying with the provisions of The Insurance Act, 1938, as amended, (the "Insurance Act"), the Insurance Regulatory and Development Authority Act, 1999 (the "IRDAI Act"), IRDAI Financial Statements Regulations, orders/ directions/circulars issued by the Insurance Regulatory and Development Authority of India (the "IRDAI"/Authority) which includes (i) preparation of management report consistent with the financial statements; (ii) compliance with the terms and conditions of the registration stipulated by the Authority; (iii) maintenance and custody of cash balances and maintenance of investments with custody and depository; and (iv) ensuring that no part of the assets of the policyholders funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, relating to the application and investments of the Policyholders Funds. This responsibility includes collecting, collating and validating data and designing, implementing and monitoring of internal controls suitable for ensuring the aforesaid and applying an appropriate basis of preparation; and making estimates and judgments that are reasonable in the circumstances.

Auditors Responsibility

3. Pursuant to the requirements of IRDAI Financial Statements Regulations, 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 Company has complied with the matters contained in paragraphs 3 and 4 of Schedule C read with regulation 3 of the IRDAI Financial Statements Regulations for the year ended March 31, 2023.

4. We have audited financial statements of the Company for the financial year ended March 31, 2023 on which we have issued a qualified audit opinion vide our report dated May 29, 2023. Our audit of these financial statements was conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India (ICAI). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

5. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India (the ICAI). The Guidance Note requires that we comply with the independence and other ethical requirements of the Code of Ethics issued by ICAI.

6. 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 the 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 Company for the year ended March 31, 2023, we certify that:

a) We have reviewed the Management Report attached to the standalone financial statements for the year ended March 31, 2023, and on the basis of our review, there is no apparent mistake or material inconsistencies with the standalone financial statements;

b) Based on management representations by the officer of the Company charged with compliance, nothing has come to our attention that causes us to believe that the Company has not complied with the terms and conditions of registration as stipulated by IRDAI;

c) a. We have verified Cash balances, to the extent considered necessary, and securities related to the Companys Loans and Investments, subject to paragraph (b) herein mentioned below, on following basis:

Sr No. Asset	Nature of Verification
i) Cash	Physical verification, Management Certificate and Regional / Branch Auditors reports.
ii) Investment	Custodians Certificate (RBI, CCIL & SHCIL) and Managements Certificate.
iii) Securities relating to loan	Managements Certificate.

b. (i) No confirmations were available from custodian in respect of following:

i. Investment in equity shares having book value of Rs. 2.12 lakhs are under objection.

ii. Equity shares having book value amounting to Rs. 12.04 lakhs and Debentures/Bonds having face value Rs. 37.74 lakhs respectively for which no evidence of ownership was available.

(ii) Investment in Term Loans, Loans to State Government for the purpose of Housing & Fire Fighting Equipments, Investments in Pass Through Certificates (PTC) and Balances on account of restructuring/rescheduling of debts are subject to confirmations /reconciliations.

(iii) No confirmations were available in respect of Foreign Investments amounting to Rs. 1,252.92 Lakhs.

d) To the best of our information and explanations given to us, the company has not undertaken any trust as trustee.

e) No part of the assets of the policyholders funds has been directly or indirectly applied in contravention to the provisions of the Insurance Act, 1938 relating to the application and investments of the Policyholders funds.

Restriction on Use

8. This certificate is issued at the request of the Company solely for use of the Company for inclusion in the annual accounts in order to comply with the provisions of paragraph 3 and 4 of Schedule C of the IRDAI Financial Statements Regulations read with Regulation 3 of the IRDAI Financial Statements Regulations and is not intended to be and should not be used for any other purpose without our prior consent. 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 Certificate is shown or into whose hands it may come without our prior consent in writing.

For R. Devendra Kumar & Associates	For Kailash Chand Jain & Co.
Chartered Accountants	Chartered Accountants
FRN: 114207W	FRN: 112318W
Neeraj Golas	Saurabh Chouhan
Partner	Partner
M. No.: 074392	M. No.167453
UDIN: 23074392BGXJOY9149	UDIN: 23167453BGRWAR1123
Place : Mumbai
Date : May 29, 2023

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE NEW INDIA ASSURANCE COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2023

The preparation of consolidated financial statements of The New India Assurance Company Limited for the year ended 31 March 2023 in accordance with the financial reporting framework prescribed under the Insurance Act, 1938 read with the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of 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 29 May 2023.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated financial statements of The New India Assurance Company Limited for the year ended 31 March 2023 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.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors report under section 143(6)(b) of the Act.

	For and on behalf of the
	Comptroller and Auditor General of India
Place: Mumbai	(Guljari Lal)
	Director General of Audit (Shipping),
Date: 08.08.2023	Mumbai