16. Lease:

The Company's office premises and residential flats for employees are obtained on operating lease and are renewable / cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals amounting to ? 17,217.14 Lakhs (PY ? 16,738.05 Lakhs) in respect of obligation under operating lease are charged to revenue account.

The Company does not have any outstanding diluted potential equity share. Consequently, the basic and diluted earnings per share of the Company remain the same.

18. Corporate Social Responsibilities (CSR):

As per Section 135 of the Companies Act 2013 (the Act), the Company was required to spend an amount of ? 2,306.00 lakhs (PY ? 2,835.00 Lakhs) for the financial year 2022-23.

The charge for the year to profit and loss account on account of CSR amounting to ? 2,320.12 Lakhs (P.Y. ? 2,835.00 Lakhs) consists of following:

a) An amount of ? 1202.32 Lakhs (PY ? 2750.78 Lakhs) has been spent directly and through implementing agencies.

b) The balance unspent amount for the current year ended March 31, 2023, of ? 1,103.68 Lakhs (PY 84.21 Lakhs) have been provided in the books. For the balance unspent CSR amount as of March 31, 2023, a separate Unspent CSR Bank Account was opened on April 25, 2023 and the amount of ? 1103.68 lakhs has been credited to this account.

c) Expenses incurred on Impact assessment amounting to ? 7.55 lakhs and ? 6.58 lakhs in the case of Har Ghar Tiranga Projects is debited to CSR Exp account.

19. Books maintained on Calendar year: The accounts incorporate Audited accounts of branches in Fiji and Thailand which are prepared on calendar year basis as per the requirement of local laws. Significant transaction reported between January 01, 2023 to March 31, 2023 has been incorporated in the financial statements.

20. Unaudited accounts of foreign branches: The accounts of run-off Agency at Colombo and representative office at Myanmar have been incorporated on the basis of unaudited accounts. Audit of accounts of Sydney is carried out under agreed upon procedures and of Curacao branches is carried out under International Auditing Standards and hence these branches are treated as unaudited. In the opinion of management these branches are not material to the company.

21. In the case of inward reinsurance premium, the unexpired risk reserve is created based on the assumption that the risk starts at the beginning of the quarter instead of applying actual risk dates of underlying policies since the precise policy wise data is not readily available.

a) The Company is in the process of reconciling the data in respect of unclaimed amount of claims settled but not paid amounting to Rs 710.14 lakhs and necessary compliance of Master circular including concurrent audit of transactions and transfer of funds to Senior Citizen welfare fund is being ensured.

b) Further as per the Master Circular, the Company is required to invest the above said total amount of ? 17,258.58 Lakhs (PY ? 18,127.77 Lakhs) with accrued interest of ? 4,736.94 Lakhs (PY ? 4,313.55 Lakhs), totalling to ? 21,995.52 Lakhs (P.Y. ? 22,441.32 Lakhs), whereas the fixed deposit created for the same is ? 22,756.55 Lakhs (PY. ? 23,886.68 Lakhs) with accrued interest as on March 31,2023 ? 783.21 Lakhs (P Y ? 423.81 Lakhs), totalling to ? 23,539.76 Lakhs (PY. ? 24,310.49 Lakhs).

24. Liability under Micro, Small and Medium Enterprise Development Act, 2006:

The Company has initiated the process of capturing the data relating to enterprises which have been providing goods and services to the Company, falling within the purview of Micro, Small and Medium Enterprises Development Act, 2006, in the accounting system. Pending system augmentation, the disclosure in respect of the amount payable to such Micro, and Small Enterprises as at March 31, 2023 has not been made in the standalone financial statements. In view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

Note 1 : The Company received an order from Competition Commission of India (CCI) imposing a penalty of ?

25.107.00 Lakhs in 2015-16. The Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of ? 20.00 Lakhs as against ?

25.107.00 Lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex Court and the case has been admitted in the Apex Court in March 2017. Counter-affidavit/reply has already been filed by NIA as on March 31,2023.

Note 2 : BSE and NSE imposed penalty for noncompliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosures Requirements), 2015 pertaining to the composition of the Board including failure to appoint women director. The Company has appealed for waiver of the same, as the non-compliance is due to delay in appointment of director which is solely dependent upon Government of India.

26. Internal Controls:

The Company has a fairly adequate internal control and appropriate validations in the system. Stress is being given to strengthen the internal control in the area of Reinsurance accounts. Improvements have been made in the modules of Reinsurance accounts and FAC Inwards through RAMS software. The Company is in the continuous process of further strengthening internal controls in other areas of its operations, by bringing more controls and validation in system. The Internal Audit System including that relating to Foreign offices is also being Strengthened and under comprehensive review.

27. Fraud Monitoring Cell:

The Company has a Fraud Monitoring Cell which monitors external frauds reported and a Vigilance Department which monitors matters related to employees. The said fraud cell compiles data based on inputs from operating offices. As per the assessment made by the Cell, there were no matters related to external frauds reported during the year, which required any disclosure or adjustments to the standalone financial statements of the Company except as under:

a) In Digital Hub third-party frauds were detected whereby certain third parties/insured have committed offences/fraud by modifying 17261 policies issued by the digital hub. The Company is filing FIR in the matter and has appointed an advocate to advice on legal recourse available for the same. In the view of management this requires no adjustments to the standalone financial statement as the said fraud has no material financial impact.

b) In case of 4 operating offices Online Frauds using Broker Portal has been reported where Motor Insurance policies for four wheelers were issued through the portal as two-wheelers consisting of

7699 policies. The Company has filed FIR in cases of 3 offices out 4 and is in the process of filing FIR for the remaining 1 office. In the view of management this requires no adjustments to the standalone financial statement as the said fraud has no material financial impact.

c) In case of 2 operating offices Online Frauds using Customer Portal has been reported where Motor Insurance policies for four wheelers were issued through the portal as two-wheelers consisting of 3505 policies. The Company has filed FIR for both the offices and in the view of management this requires no adjustments to the standalone financial statement as the said fraud has no material financial impact.

d) In Mumbai Micro Office 85 fraudulent claims amounting to ? 1.06 crores were paid in collusion between Hospitals and a TPA. The TPA has lodged FIR against their employees. The amount has been recovered from TPA.

28. a) 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 lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

29. The Code on Social Security, 2020 (“Code”) relating to employee benefits during the employment and postemployment benefits has been published in the Gazette of India on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which

these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified, and the Code becomes effective.

30. Wage revision for employees of PSU GIC is due w.e.f. Aug-22. The company has made provision of ? 9,720.00 Lakhs towards wage revision for the period August 2022 to March 2023.

31. Provision towards Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as on March 31, 2023 has been determined by Appointed Actuary, which is in accordance with accepted actuarial practice and IRDAI regulations in this regard.

32. During the current financial year, based on the advisory from IRDA, the Company has set up a Committee for IND-AS implementation and also process for selection of consultant for implementation of IND-AS has been initiated.

33. Proposed Dividend for current year:

The Board of Directors of the Company proposed a final dividend of of ? 31,806.40 lakhs being 38.60% of the Paid-up share Capital of the company, subject to the approval of the members at the Annual General meeting. In terms of Revised Accounting Standard (AS) 4, Contingencies and events occurring after the Balance sheet date as notified by the Ministry of Corporate affairs through the amendments to the Companies (Accounting Standard) Rules, 2016, the company has not appropriated proposed dividend from the standalone Profit and Loss account for the year ended March 31, 2023.

34. Previous year figures have been regrouped / rearranged, wherever necessary.

20 Investment income (Net of Expenses) is apportioned between Revenue Accounts and Profit and Loss account in proportion to the balance in the Shareholders' funds and Policyholders' funds at the beginning of the year. The same is further apportioned to fire, marine and miscellaneous Revenue Accounts in proportion to the technical reserve balance at the beginning of the year.

21 The Unexpired Premium Reserve (UPR) at a revenue segment level was found to be sufficient to cover the expected claims cost as certified by the Appointed Actuary and the claim related expenses as estimated by the management . Hence no premium deficiency reserve is required to be provided.