New India Assurance Company Ltd Auditor Reports

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, 2026, the Revenue Accounts of Fire, Marine, Miscellaneous and Revenue Account for the company (total) 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 45 Regional offices (including 11 LCBOs, 2 Legal Hubs, 3 Auto Hubs and Gift City Office), 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 9 Foreign Branches (including 2 Foreign Run-off offices) and 6 Foreign Agency offices audited by local Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013; and 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 ), IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024, 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, 2026; b) in the case of Revenue Accounts, of the Operating Profit in so far as it relates to the Fire and Marine Insurance business and of the Operating Loss so far as it relates to Miscellaneous Insurance 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

Balances relating to various accounts under inter office accounts, unadjusted banking transactions and dues from / to Reinsurers are subject to confirmation and reconciliation. Consequential adjustments and effect thereof in this regard, if any, is yet to be dealt with. The process of compilation of old balances is also at different stages in the company. [Refer Note No.9, Schedule 16B] The overall impact of the above on the state of affairs of the Company as at March 31, 2026, the Revenue Accounts, Profit and Loss Account and the Receipts and Payments Account for the year ended on that date, is presently 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 thereunder, 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 6 b) of Schedule 16B regarding non provisioning for Tax Demands on account of favourable judgements received by the Company that includes matters under appeal at the ITAT Mumbai / Honble Bombay High Court. Same is considered as Contingent Liabilities amounting to 83090 Lakhs.

b) Note 25 of Schedule 16B regarding strengthening of Internal controls and Internal audit especially in the area of data input and validation in software and internal audit system of the Company.

c) Note 31 of Schedule 16B regarding the compliance of Rule 3(1) of The Companies (Accounts) Rules, 2014 towards audit trail and edit log and pending compliance of Section 128 of the Companies Act, 2013 and rules thereunder, as amended, regarding maintenance of the books of account and other books and papers in an electronic mode and backup thereof in respect of foreign branches of Company which is not accessible in India at all times and backup thereof is not maintained at servers physically located in India. 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 Financial Year. 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. Key Audit Matters No.	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 coinsurer leader in cases of incoming co-insurance business etc. The estimates are revised again based on further information.	\u2022 The audit matters for verification of claims provisioning are handled at the Regional Offices of the Company. We have observed that Regional 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, coinsurer 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.	\u2022 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, 2026, is as certified by the Companys Appointed Actuary.
	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.

Sr. Key Audit Matters No.	Auditors Response
2. Valuation of Investments	Principal Audit Procedures Performed
Investments held by the Company constitute a significant portion of the assets as at March 31, 2026 and are required to be valued in accordance with the accounting policies formulated in line with the applicable regulatory requirements. The valuation process is governed by the Companys investment policy, which is aligned with the applicable Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024. Appropriate valuation methodologies prescribed under the said regulations are applied for each category of investment.	\u2022 Obtained an understanding of the managements process and internal control framework relating to the valuation of investments.
Accordingly, valuation of investments (including impairment assessment) was considered to be one of the areas which required significant auditor attention and was one of the matters of significance in the standalone financial statements.	\u2022 Evaluated the design and tested the operating effectiveness of key controls governing the investment valuation process, including management review controls. On a sample basis, assessed the valuation of various categories of investments with reference to applicable Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024 and the Companys investment policy.
	\u2022 Verified the existence and ownership of investments through external confirmations, statements, and other supporting documents, wherever applicable.
	\u2022 For the fair valuation models, understood and assessed the methodology used. Tested the underlying data and assumptions used in the determination of the fair value.
	\u2022 Examined movement and appropriateness of accounting in Fair Value Change account for specific investments.
	\u2022 Assessed and tested the management procedures for performing impairment analysis of investments based on investment policy and evaluated the adequacy of impairment provisions recognized against investments outstanding as at the year end.

Other Matters

a) We did not audit the financial statements and other financial information of 45 Regional offices (including 11 LCBOs, 2 Legal Hubs, 3 Auto Hubs and Gift City Office) and 9 Foreign Branches (including 2 Foreign Run-off offices) and 6 Foreign Agency offices, included in the Standalone Financial Statements of the Company whose financial statements reflect total assets of Rs. 39,08,941 Lakhs as at March 31, 2026 and total revenues of Rs. 47,15,216 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) 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, 2026 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. [Refer Note 4 of Schedule 16B].

c) The Standalone Financial Statements of the Company for the year ended March 31, 2025 were audited by the Joint Central Statutory Auditors, one of which is predecessor audit firm and have issued their modified opinion dated May 19, 2025 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 and Sustainability 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, IRDAI 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, the Insurance Act, , IRDAI Act, the IRDAI Financial Statements Regulations 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 Standards 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 11, 2026 certifying the matters specified in paragraphs 3 and 4 of Schedule II, Part III 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 read with Note 31 of Schedule 16B regarding accessibility and back up of the books of accounts and papers at servers physically located in India on a daily basis , 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 from Regional / Foreign Offices, not visited by us, have been received and these were adequate for the purpose of our audit.

c) The reports of Auditors of Regional Offices, 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 speci ed under Section 133 of the Act read with relevant rules issued thereunder.

g) 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.

h) The accounting policies selected by the company are appropriate and are in compliance with the applicable Accounting Standards speci ed 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.

i) 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, 2026, 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.

j) 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.

k) 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 5 th 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 6 (b) and (f) 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 has been no delay in transferring amounts, 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 27 (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 24 (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 proposed for the previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act to the extent it applies to payment of dividend. As stated in Note 32, Schedule 16B of the financial statements, the Board of Directors of the Company has proposed 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, to the extent it applies to declaration of dividend.

vi) Based on our examination which included test checks and based on the reports received from the Regional Auditors and the branch auditors of Foreign Branches/offices, the company has used accounting softwares for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, based on test checks , we did not come across any instance of audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention except in case of Foreign branches/offices where compliance of record retention could not be verified due to lack of requisite details available in India.

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 Sub 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.

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, 2026, 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, 2026: Balances relating to various accounts under inter office accounts, unadjusted banking transactions and dues from / to Reinsurers are subject to confirmation and reconciliation 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 31,2026, 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 Standalone Financial Statements of the Company for year ended March 31, 2026, 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 Insurance Act, 1938, as amended (the Insurance Act), the Insurance Regulatory and Development Authority Act, 1999 (the IRDAI Act), IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024, as amended (the IRDAI Financial Statements Regulations), orders / directions / circulars issued by the Insurance Regulatory and Development Authority of India (the IRDAI) and 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 Matters

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 45 Regional offices (including 11 LCBOs, 2 Legal Hubs, 3 Auto Hubs and Gift City Office), audited by the other firms of Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013, 9 Foreign Branches (including 2 Foreign Run-off offices) and 6 Foreign Agency offices audited by local Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013, 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) 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, 2026 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.

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 Sub directions issued by the Comptroller and Auditor General of India in terms of the section 143(5) of the Act:

Sr. Directions under Section 143(5) of No. Companies Act, 2013	Auditors\u2019 Comment
1 Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post retirement benefits of the employees.	All investments, made by the Company through Trusts, for Post-retirement benefits of the employees have been valued in accordance with the applicable financial reporting framework and applicable regulations. The valuation approach and valuation methodologies applied by the Trusts for these investments is appropriate.
This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements.	Brief note on the valuation approach
	Quoted investments in mutual funds are measured at fair value, whereas funds maintained by the Life Insurance Corporation of India (LIC) are valued based on the respective fund statements received from LIC. For Central and State Government securities, as well as public and private bonds, the investments are valued at cost, with any premium or discount paid upon purchase being accounted for exclusively at the time of their sale or redemption. Finally, all other investments within the portfolio are consistently valued at cost, ensuring a comprehensive and regulatory-compliant valuation approach, considering the long term nature of the funds.
2 Whether the Company has a system in place to process all the accounting transactions through IT system? If yes, whether review of this system and controls that are significant to the Companies financial reporting process as well as cyber security has been done by Information Security Auditing Organisations empaneled by Cert-In at a minimum frequency of once in a year and material discrepancies found, if any, have been suitably reported? The implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications may also be reported	As per the information and explanations furnished to us, the company has an Enterprise Resource Planning (\u201cERP\u201d) system known as \u201cCWISS\u201d for accounting policy and claims data (Direct Business) and separate specialized software \u2013 RAMS for Re-insurance business and CREDENCE for Investment Operations. Exceptions in this regards are -
	a) In Reinsurance, Facultative Inward for Marine and Aviation LOB are processed manually through RAMS.
	b) 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 software\u2019s to 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.
	There is a need of full automation of Process of compilation of financial statements to ensure complete data integrity.
	c) In the case of UK operations, the branch auditors have reported as under: The branch has system in place to process all the accounting transactions through IT systems except as below:
	i. Underwriting systems & Accounting systems are not linked. The information is uploaded to the accounting system by using CSV Files.
	ii. FX Calculations are performed separately in Excel and journal entries are posted in the accounting system.
	iii. UPR and Deferred commission calculations are performed in Excel for reporting purposes
	The review of the systems and controls that are significant to the Company\u2019s Financial reporting process as well as Cyber Security Assurance Audit has been done by
	Information Security Auditing Organisations empanelled by Cert-In during the year and 2 observations ( medium risk) were reported and is been suitably addressed

Sr. Directions under Section 143(5) of No. Companies Act, 2013	Auditors\u2019 Comment
3 Whether funds (grants/ subsidy etc.) received/ receivable for specific schemes from Central/State Government or its agencies were properly accounted for as per the applicable accounting standards or norms and whether the received funds were utilised as per its terms and conditions? Whether accounting of interest earned on grants received has been done as per terms and conditions of the Grant. List the cases of deviation\u2019s	During the FY 2025-26, the Company has not received any fund (grants/ subsidy etc.) for specific schemes from Central/State Government or its agencies. However, the Company has received Premium relating to various schemes relating to insurance from Central/State Government or its agencies. Premium received/receivable under schemes from Central/State Government or its agencies were accounted for/utilised as per its terms and conditions. Funds received/receivable from Central/State Government or its agencies under PMFBY scheme are being reconciled with the data available on the Government Portal.
	In accordance with the terms and conditions of the fund/premium received from Central/State Government or its agencies for insurance schemes, no interest income was earned or accrued on the amounts for the period under review.
4 Whether the Company has identified the key Risk areas? If yes, whether the Company has formulated any Risk Management Policy to mitigate these risks? If yes, (a) whether the Risk Management Policy has been formulated considering global best practices? (b) whether the Company has identified its data assets and whether it has been valued appropriately?	The company has identified the key risk areas and has formulated a risk management policy to mitigate these risks. The said policy has been duly approved by the Board of Directors and, as represented by management, the same is stated to be based on global best practices, namely COSO Enterprise Risk Management Framework and ISO 31000 Risk Management Guidelines.
	In accordance with the applicable financial reporting framework, the company has not identified any data assets and consequently these have not been subject to valuation.
5 Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable? If not, the cases of deviation may be highlighted.	Based on the information and explanations given to us, secretarial audit report of the company, and audit procedures carried out by us, the company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable, except as mentioned below.
	The Company has not complied with the requirement under Regulation 17(1)(b), 17(1)(c), 18(1)(a), 18(1)(b) , 19(1)(a) and 19(1)(c) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.

Sub directions issued by C&AG of India as applicable to The New India Assurance Company Limited for the year 2025-26

Sr No. Sub Directions under Section 143(5) of Companies Act, 2013	Auditors\u2019 Comment
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 Company\u2019s 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 statement. In case of Bonds/Debenture/ Equities/Preference Shares, balances are tallied as per the books of accounts of the Company and custodian statement. The Investments are in agreement except for the following instances:
	a) Investment in 26 scrips of equity shares having book value of 1442 lakhs are under shortage / objection / physical transit / dematerialization / in the process of conversion of name of Company.
	b) Investment in 2 scrips of equity shares have been sold by company but are in the process of removal from custodian statement.
	c) Investment in 16 scrips of preference shares having book value of 12 are under demat / physical transit/ in the process of conversion of name of Company.
	d) Investment in 22 scrips of Bonds / Debentures having face value of 542 lakhs are under shortage / objection / physical transit / with official liquidator.
	e) Investment in 7 scrips of Bonds / Debentures having face value 21110 lakhs are settled and removed from Company books but not removed from custodian Statement.
	The Company is in the process of taking adequate steps for reconciliation and adjustments wherever required.
2 Whether investment policy exists and includes mechanism to review investment portfolios and also 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.	An investment policy is reviewed annually and the same is approved by the Board. Further, a stop loss/exit policy has been incorporated in Investment Policy. The stop loss policy is adhered to and the shares which satisfy the criteria of stop loss/exit is placed before the 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 and reviewed, reconciliation and settlement of Coinsurance balances reflected in Company financial statements with other PSU insurers were carried out at regular intervals by the Company. Further, 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. on a case to case basis.
	The process of matching open items, confirmation and reconciliation is in progress in relation to the net balances due to/due from in respect of reinsurance activities of the company with other PSU insurers. These accounts are still under the process of compilation/age-wise analysis/ reconciliation and segregating into debit and credit balances. Also, there are migration differences which need to be reconciled.
4 Whether entire input tax credit (ITC) available on GST portal in respect of the company has been availed within prescribed time limits.	The Company avails GST input credit only on the basis of valid tax invoice at the time of making payment of invoices. It 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. For a portion of the expenses, where GST input is claimed based on the valid invoices received from the suppliers, validation checks are verified in the system on a sample basis. After validations, the system allows for claiming input GST in respect of those invoices for which actual payment has been made.

Sr No. Sub Directions under Section 143(5) of Companies Act, 2013	Auditors\u2019 Comment
	Input is not claimed on those invoices lying unpaid, as the same can be availed up to due date of filing October 2026 GST Returns, for those invoices raised during the F.Y 2025-26. 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.
	Unclaimed input tax credit amounting to 8379 lakhs pertaining to the period FY 2021-22 to 2024-25 continues to remain outstanding. Also, adequate provision has been created in the books of accounts against such balances. Further, GST input credit remaining un-availed for the FY 2025-26 is 6068 lakhs. This can be availed up to due date of filing October 2026 GST returns.
5 Whether reporting as to the adequacy Of accounting/ MIS or other mechanism by which treaty wise or facultative arrangement-wise performance (premium ceded/accepted, claims thereon and commission-including all rewards and remuneration to intermediaries /cedants) is assessed in all different segments, geographies and departments engaged in reinsurance operations.	The accounting of premium, commission, paid claims and outstanding claims in the RAMS based on the treaties/FAC attachments and policy level data flows from CWISS (Direct side). In RAMS, based on the aforesaid data front end reports are generated such as treaty wise statistics on the basis of which review of treaty performance and cost benefit analysis is done.
	However, it is noticed that the respective departments have incorporated various manual journal entries to carry out rectifications/ other entries which needs to be avoided.
6 Whether the RAMS software is in sync with the CWISS software (accounting software) of the Company and that the data is also fetched from RAMS by CWISS for the purpose of Accounting and Payouts.	RAMS software is in sync with the CWISS software (accounting software) of the Company. Though manual JEs are being passed in certain areas, it is explained that the management is in the process of complete integration and automation of both the software.

For S. Ramanand Aiyar & Co.	For Chokshi & Chokshi LLP
Chartered Accountants	Chartered Accountants
FRN: 000990N	FRN: 101872W/W100045
	(Dharmista Shah)
(Binod C. Maharana)	Partner
Partner	M. No. 108845
M. No.: 056373	UDIN: 26108845PZTDWQ7610
UDIN: 26056373RYMWTT5318
Date: May 11, 2026
Place: Mumbai