Note: (1) The Company has disputed the demand raised by Income Tax Authorities of ' 839,255 thousand (previous year: ' 290,327 thousand), the appeals of which are pending before the appropriate Authorities.

This excludes,

a) Assessment Years 2006-07 in respect of which the Company has received favorable appellate order, which are pending for effect to be given by the Assessing Authority.

b) Assessment Years 2002-03, 2003-04, 2005-06, 2007-08, 2008-09, 2009-10 and 2010-11, for which the Company has received intimation from the Income Tax Department, for appeal filed with High Court, against favorable Appellate Orders.

(2) Includes disputed refund/demand (including interest and penalty) of ' 3,959,501 thousand (previous year: ' 8,446,472 thousand) from Service Tax Authorities/Goods & Service Tax Authorities/Jammu and Kashmir Sales Tax, the appeals of which are pending/in the process of being filed before the appropriate Authorities. Further, ' 176,390 thousand (previous year: ' 173,102 thousand) has been paid at the time of filing CESTAT/Commissioner Appeal as per the provisions of the Finance Act, 1994/GST Act.

(4) Excludes, payment of ' 1,041,319 thousand under protest pursuant to a GST proceeding on account of alleged ineligible input tax credit claim and applicability of GST on salvage adjusted on motor claims settled during the period from July 2017 to December 2021. The Company has been advised that its tax position on both the matters is legally valid and that the Company should not be liable to pay the said amounts. Accordingly, the Company has treated the amount paid as deposit under "Advances and Other Assets" as at March 31,2023. Further, the Company will file refund for these amounts in due course.

(5) Excludes, GST of ' 500,000 thousand deposited under protest during an ongoing proceeding evaluating Input Tax Credit entitlement on certain marketing expenses for the period from July 2017. The Company has not received a Show Cause Notice in the matter; however, the Company believes that the adopted tax position is legally tenable. Accordingly, the Company has treated the amount paid as deposit under "Advances and Other Assets" as on March 31,2023.

5.1.2 The assets of the Company are free from all encumbrances except for fixed deposits of ' 8,885 thousand (previous year: ' 8,885 thousand) (Included in short term deposit account in Schedule - 11) for issuing bank guarantees and items included in Note 5.1.1 above.

5.1.3 Capital Commitments

Estimated amount of commitment pertaining to contracts remaining to be executed in respect of fixed assets (net of advances) is ' 770,489 thousand (previous year: ' 534,073 thousand).

5.1.4 Commitment in respect of loans is ' NIL (previous year: ' NIL) and investments is ' 1,134,770 thousand (previous year: ' 1,508,924 thousand).

Claims settled and remaining unpaid for more than six months is ' Nil (previous year: ' NIL).

Claims where the claim payment period exceeds four years:

As per circular F&A/CIR/017/May-04, the claims made in respect of contracts where claims payment period exceeds four years, are required to be recognised on actuarial basis. Accordingly, the Appointed Actuary has certified the fairness of the liability assessment, assuming 'NIL' discount rate.

(B) Allocation of investment income

Investment income which is directly identifiable is allocated on actuals to revenue account(s) and profit and loss account as applicable. Investment income which is not directly identifiable has been allocated on the basis of the ratio of average policyholder's investments to average shareholder's investments, average being the balance at the beginning of the year and at the end of the reporting period.

Further, investment income across segments within the revenue account(s) has also been allocated on the basis of segment-wise policyholders funds.

5.1.10 Allocation of expenses

Allocation/apportionment of Operating Expenses is based on the Organisational Structure of the Company comprising of Business, Service and Support Groups. Business comprises of Corporate Business Group, Retail Business Group (including Sub Groups), Emerging Markets Business Group and Government Business Group. Expenses incurred by Business Groups are direct in nature. Service Group comprises of Customer Service Group which consists of Underwriting and Claims Group, created based on product segments. Support Group consists of Investments, Operations, Legal, Finance and Accounts, Reinsurance, Technology etc. Expenses incurred by Service and Support Groups are indirect in nature.

Operating expenses relating to insurance business are allocated to specific classes of business on the following basis:

• Direct expenses pertaining to Business Group that are directly identifiable to a product segment are allocated on actuals and other direct expenses are apportioned in proportion to the net written premium of the product within the Business Group. However, in case of retail business group, the other expenses of its sub group are apportioned based on the net written premium contributed by the respective sub group;

• Expenses pertaining to Service Group are apportioned directly to the product to which it pertains. In case of multiple products, expenses are apportioned in proportion to the net written premium of the multiple products;

• Expenses pertaining to Support Group and any other expenses, which are not directly allocable, are apportioned on the basis of net written premium in each business class.

In accordance with the IRDAI (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations, 2016, operating expenses in excess of segmental limits of ' 1,151,605 thousand in LOB Health - Retail (previous year: ' 1,162,054 thousand), and ' 7,755,278 thousand in LOB Motor (previous year: ' 6,534,870 thousand) is reported as income under revenue account under separate sub-line item to Others as "Contribution from Shareholders Funds towards Excess EOM" and reported as allowable expenses under Other Expenses in Profit & Loss account under separate sub-line item as "Contribution to Policyholders Funds towards Excess EOM"

(B) Defined benefit plan Gratuity

The Company has a defined gratuity benefit plan payable to every employee on separation from employment. The Company makes the contribution to an approved gratuity fund which is maintained and managed by ICICI Prudential Life Insurance Company Limited.

5.1.18 Employee Stock Option Scheme (ESOS)

The Company instituted the ESOS Scheme pursuant to the resolutions passed by our Board and Shareholders on April 26, 2005 and July 22, 2005, respectively. The Company had granted Stock options to employees in compliance with the Securities and Exchange Board of India (Employee stock option scheme and employee stock purchase scheme) guidelines, 1999. Pursuant to the ESOS Scheme, no eligible employee could, in aggregate be granted in a financial year, options greater than 0.1% of the issued equity share capital of the Company and the aggregate of options granted to the eligible employees under the ESOS Scheme was capped at 5% of the issued capital of our Company as on the date of such grants. ESOS Scheme was further amended pursuant to the resolutions passed by the Board and Shareholders on June 9, 2017 and July 10, 2017, respectively, to approve the amendment in the ESOS Scheme for, inter alia, aligning it with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. Further, the exercise price was finalised by the Board Nomination and Remuneration Committee in concurrence with the Board based on an independent valuer's report. During the year ended March 31,2022 and March 31,2023, the Company has granted options under the ESOS scheme in compliance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and is set out below.

The estimated fair value is computed on the basis of Black-Scholes option for Grant (2022) issued during the year ended March 31,2023. 3,385,870 options (previous year: 2,178,950) are vested during the year ended March 31, 2023 and ' 200,709 thousand (previous year: ' 420,322 thousand) was realised by exercise of options.

The company follows intrinsic value method and hence there was no charge in the Revenue Accounts and Profit and Loss Account. Had the Company followed the fair value method for valuing its options for the year ended, the charge to the Revenue Accounts and Profit and Loss Account would have been higher by ' 1,285,601 thousand (previous year ' 981,276 thousand) and profit after tax would have been lower by ' 962,041 thousand (previous year ' 734,308 thousand). Consequently, the Company's basic and diluted earnings per share would have been ' 33.25 (previous year ' 24.41) and ' 33.20 (previous year ' 24.33) respectively.

The weighted average price of options exercised during the year ended March 31,2023 is ' 854.74 (previous year: ' 775.6).

5.2 Other disclosures

5.2.1 Basis used by the Actuary for determining provision required for IBNR/IBNER

IBNR (including IBNER) liability as of March 31, 2023 for all lines of business has been estimated by the Appointed Actuary in compliance with the guidelines issued by IRDAI from time to time and the applicable provisions of the Guidance Note 21 issued by the Institute of Actuaries of India.

Pursuant to IRDAI regulation of Asset, Liabilities, and Solvency margin of General Insurance Business Regulations 2016 (IRDAI/Reg/7/119/2016 dated April 7, 2016); claim reserves are determined as the aggregate amount of Outstanding Claim Reserve and Incurred but Not Reported (IBNR) claim reserve for 28 stipulated lines of business.

Pursuant to Actuarial Practice Standard (APS) 33 issued by Institute of Actuaries of India (IAI) which is mandatory and effective from December 1, 2017, the peer review of statutory valuation of liabilities for March 31,2023 has been carried out by an independent actuary

5.2.2 Provision for Free Look period

The provision for Free Look period ' 189 thousand (previous period: ' 31 thousand) is duly certified by the Appointed Actuary.

5.2.3 Contribution to Terrorism Pool

The Company in accordance with the requirements of IRDAI has participated in contributing to the Terrorism Pool. This pool is managed by the General Insurance Corporation of India ('GIC'). Amounts collected as terrorism premium are ceded at 100% of the terrorism premium collected to the Terrorism Pool, subject to conditions and an overall limit of ' 20,000,000 thousand.

In accordance with the terms of the agreement, GIC retrocedes, to the Company, terrorism premium to the extent of the Company's share in the risk, which is recorded as reinsurance accepted. Such reinsurance accepted is recorded based on intimation/confirmation received from GIC. Accordingly, reinsurance accepted, on account of the terrorism pool has been recorded only up to December 31, 2022 (previous period: December 31, 2021) as per the last confirmation received. The share of investment income for the year ended March 31,2023 (Previous period: March 31,2022) has been recognised on estimate basis.

5.2.4 India Nuclear Insurance Pool

In view of the passage of the Civil Liability for Nuclear Damage Act, 2010, GIC Re as Indian Reinsurer initiated the formation of the India Nuclear Insurance Pool (INIP) along with other domestic non-life insurance companies by pooling the capacity to provide insurance covers for nuclear risks. INIP is an unregistered reinsurance arrangement among its members i.e. capacity providers without any legal entity. GIC Re and 11 other non-life insurance companies are Founder Members with their collective capacity of ' 15,000,000 thousand. GIC Re is also appointed as the Pool Manager of the INIP. The business underwritten by the INIP will be retroceded to all the Member Companies including GIC Re in proportion of their capacity collated. Out of the total capacity of ' 15,000,000 thousand of the INIP, the capacity provided by the Company is ' 1,000,000 thousand. The Company has recorded its share of the premium retrocession based on statement/ information received upto September 30, 2022 (previous period: September 30, 2021) and investment income upto March 31, 2022 (previous period: March 31, 2021). The share of investment income for the year ended March 31,2023 (Previous period: March 31,2022) has been recognized on an estimate basis and also share of premium for the current period has been provisionally recorded.

5.2.5 Marine Cargo Pool

The Insurance Industry in India under the directive of Ministry of Finance and IRDAI, has pooled their net capacity to form a national marine cargo pool. The Pool, being managed by GIC, is for essential commodities from restrictive Territories. The coverage under the pool is on named peril basis and restrictive. The Pool came in effect from June 1, 2022. The Pool capacity is ' 4,850,000 thousand which has been committed by the Indian Insurance Industry which includes GIC Re, four PSUs and sixteen Private Sector Insurance Companies. The Company has committed a capacity of ' 300,000 thousand per incidence per year (6.18% share of the Pool).

The cessions to the pool would be 100% after the obligatory cession, in accordance with terms of the agreement. GIC retrocedes to the Company, premiums to the extent Company's share in risks which is recorded as reinsurance accepted. As on March 31, 2023, the Company has received statement for period ended September 30, 2022 and recorded the statement/information from the pool for its share of the premium retrocession.

5.2.6 Interest, Rent and Dividend income

Interest, Dividend & Rent income is net of interest expense of ' NIL (previous year: ' NIL) on account of REPO transactions.

5.2.7 Re-insurance accepted

The results of reinsurance accepted are accounted as per last available statement of accounts/confirmation from reinsurers.

5.2.8 Contribution to Solatium fund

In accordance with the requirements of the IRDAI circular dated March 18, 2003 and based on recommendations made at General Insurance Council meeting held on February 4, 2005 and as per letter no. HO/MTD/Solatium Fund/2010/482 dated July 26, 2010 from The New India Assurance Co. Ltd. (Scheme administrator), the Company has provided 0.1% of the total Motor TP premium of the Company towards solatium fund.

5.2.9 Environment Relief Fund

During the year, an amount of ' 6,740 thousand (previous year ' 6,466 thousand) was collected towards Environment Relief Fund for public liability policies and an amount of ' 7,311 thousand (previous period ' 6,404 thousand) has been transferred to "United India Insurance Company Limited, Environment Fund Account" as per Notification of Environment Relief Fund (ERF) scheme under the public liability Insurance Act, 1991 as amended. The balance amount of ' 354 thousand (previous year ' 925 thousand) has been disclosed under the head current liabilities in schedule 13.

5.2.10 Leases

In respect of premises taken on operating lease, the lease agreements are generally mutually renewable/ cancellable by the lessor/lessee.

(C) Call Option

The Company pursuant to the approval received from Insurance Regulatory and Development Authority of India ("IRDAI") vide its letter dated July 5, 2022 has exercised Call Option and redeemed the Subordinated debenture in full on August 23, 2022 for its 'INE513L08016' series amounting to ' 2,200,000 thousand including final interest due of ' 177,804 thousand.

5.2.20 Outstanding Forward Exchange Contracts

As at March 31,2023 there are ' NIL (previous year: ' NIL) outstanding forward exchange contracts.

5.2.21 Pending Litigations

The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. (Refer Note no. 5.1.1 for details on contingent liabilities)

5.2.22 (A) The Company periodically reviews all its long term contracts to assess for any material foreseeable

losses. Based on such review, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/accounting standard.

(B) As at March 31, 2023, the Company did not have any outstanding long term derivative contracts (previous year: ' NIL).

5.2.23 Investor Education & Protection Fund.

For the year ended March 31, 2023, the company has transferred ' 1 thousand (previous year: ' Nil) to the Investor Education & Protection Fund.

5.2.26 Code on Social Security, 2020

The Indian Parliament had approved the Code on Social Security, 2020 which could impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment and state governments has pre-published draft Rules for the Code on Social Security, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry/Government. The Company will complete its evaluation once the Rules are notified and will give appropriate impact in the financial statements in the period in which the related Rules becomes effective.

5.2.27 Excess Tax Provision written back of earlier years is arising on account of completion of regular assessments

a) On gain on sale of shares in AY 19-20 - ' 1,251,754 thousand.

b) On certain payment based deductions allowed in AY 20-21 - ' 33,030 thousand.

5.2.28 During the year ended March 31, 2023, provision for impairment on investments is net of reversal of impairment amounting to ' 132,873 thousand pursuant to sale of the underlying securities/receipt against the securities (previous period: net of reversal of impairment amounting to ' 438,070 thousand).

5.2.29 During the year, the company changed the valuation of Additional Tier I perpetual bonds to fair value from amortised cost. The impact of the change on Revenue, Profit and loss account and Balance sheet is insignificant.

5.2.30 The Company has constituted the Steering Committee to oversee the implementation of Ind AS as directed by IRDAI. The Company is in the process of receiving and evaluating proposals for selecting suitable partners to facilitate smooth transition of the same.

5.2.31 Previous year/period figures have been regrouped in the respective schedule and notes wherever necessary.