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General Insurance Corporation of India.

BSE: 540755 Sector: Financials
NSE: GICRE ISIN Code: INE481Y01014
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VOLUME 17100
52-Week high 243.70
52-Week low 116.00
P/E 19.15
Mkt Cap.(Rs cr) 35,570
Buy Price 202.75
Buy Qty 37.00
Sell Price 203.00
Sell Qty 500.00
OPEN 204.00
CLOSE 203.90
VOLUME 17100
52-Week high 243.70
52-Week low 116.00
P/E 19.15
Mkt Cap.(Rs cr) 35,570
Buy Price 202.75
Buy Qty 37.00
Sell Price 203.00
Sell Qty 500.00

General Insurance Corporation of India. (GICRE) - Auditors Report

Company auditors report

To:

The Members of

General Insurance Corporation of India

Report on the Audit of the Consolidated Financial Statements

I. Opinion

We have audited the accompanying consolidated financial statements of General Insurance Corporation of India (the Holding Company) and its subsidiaries and its associates (collectively referred to as the Corporation or the Group) which comprise the Consolidated Balance Sheet as at March 31 2019 the Consolidated Revenue Accounts the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended and notes to the consolidated financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the consolidated financial statements).

In our opinion and to the best of our information and according to the explanations given to us the consolidated financial statements give the information required by the Insurance Act 1938 as amended by the Insurance Laws (Amendment) Act 2015 ('the Insurance Act') the Insurance Regulatory and Development Authority Act 1999 ('the IRDAI Act') the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations 2002 ('the IRDAI Financial Statements Regulations') orders/ directions issued by the Insurance Regulatory and Development Authority of India ('the IRDAI') the Companies Act ('the Act')including the accounting Standards specified under section 133 of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules 2014 ('the Accounting Standards') to the extent applicable and in the manner so required and the financial statements read with significant accounting policies and notes thereon give a true and fair view in conformity with the accounting principles generally accepted in India as applicable to Insurance companies of their consolidated state of affairs of the Corporation as at 31st March 2019 and of consolidated surplus of revenue accounts of Fire Miscellaneous Marine and Life business and its consolidated profit and its consolidated cash flows for the year then ended.

II. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ('SAs') specified under section 143(10) of the Companies Act 2013 (the Act) and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India ('ICAI'). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Corporation in accordance with the Code of Ethics issued by ICAI together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder; and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

III. Emphasis of Matter

a) Without qualifying our report we draw attention to Note No 16 regarding exposure of the Corporation to Infrastructure Leasing & Finance Company and other Group Companies where the Corporation has made a provision of 50% of Secured portion amounting to Rs. 3518948 thousands and 100% of Unsecured portion amounting to Rs. 850165 thousands aggregating to Rs. 4369113 thousands which in opinion of the management is considered appropriate and is higher than the provision required to be made as per Prudential Norms for Income Recognition Asset Classification and Provisioning issued by RBI and IRDAI applicable to Insurance Companies.

b) Attention is drawn to Significant Accounting Policy No. 1.7. the impact on profit for the year or Assets and Liabilities due to deviation in Accounting Policies of the Corporation and its subsidiaries cannot be evaluated for the reason stated therein. As the impact thereof is not material our opinion is not modified in respect of this matter.

IV. Key Audit Matters

Key Audit Matters are those matters that in our professional judgement were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated 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 below to be the key audit matters to be communicated in our report.

Sr. No.Key Audit MattersAuditor's response
1Revenue Recognition:Our audit procedures on revenue recognised included:
The Corporation recognises reinsurance premium income based on the statement of accounts or closing statements received from the ceding companies. At the year end estimates are made for the accounts not received based on the Estimated Premium Income (EPI) agreed upon by both the Corporation and the Ceding Companies at the time of inception of the treaty or policy slip.Tested the design implementation and operating effectiveness of key controls over Revenue Recognition.
Premium estimation is the differential of EPI and the booked premium for the year by the Corporation.Verified Premium Estimation with the guidelines of the Corporation and have performed test of controls test of details and analytical review procedures on estimation of income.
Estimation of Income can be right only if the factors involved are incorporated in the system and extracted correctly from the system.Verified EPI from the treaty or policy slip as the case may be and verified Actual Premium booked from Statement of Accounts or Closing statements received from the Cedants of the sample cases.
2Claim Provisioning:
Insurance Claim is the major area of expense for the insurance company.Total claims incurred include paid claims Outstanding Loss Reserve (OSLR) and Claims Incurred But Not (Enough) Reported (IBN(E)R).Verified operational guidelines of the Group relating to claim processing have performed test of controls test of details and analytical review procedures on the outstanding claims. Verified the claim paid and provision on sample basis with payment proof and
The Provision and payment of claims was considered to be one of the areas which required significant auditor attention and was one of the matter of most significance in the financial statements as the quantum involved is significant.Preliminary Loss advice received from the Cedant Company and the same is further verified from the surveyor's report.
For the claim cases which has been incurred but not reported and cases in which claim has been reported but not enough reported these cases has been captured by the actuary appointed by the Group. The actuarial valuation of liability in respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not Enough Reported (IBNER) as at 31st March 2019 is as certified by the Group's Appointed Actuary and we had verified the amounts and the related liability based on such report.
3.Investments:
The Corporation's investments represents substantial portion of the assets as at March 312019 which are valued in accordance with accounting policy framed as per the extent of the regulatory guidelines.Our audit procedures on Investment included the following:
Tested the design implementation and operating effectiveness of key controls over valuation process of investments.
Valuation of actively traded equity shares and ETFs is made on the closing price of NSE. If such security is not listed/ not traded on NSE on closing day the closing price of BSE is considered.Assessed appropriateness of the valuation methodologies with reference to prudential norms of the Reserve Bank of India and IRDAI along with Corporation's own valuation policy.
Valuation of thinly traded equity shares and unlisted shares as per policy adopted by the Corporation All debts securities including Government securities andRedeemable Preference shares have been measured at historical cost subject to amortization of premium paid over residual period.Sample checks for actively traded equity shares ETF's debt securities Redeemable Preference shares ETF's etc. are performed by us to determine the correctness of the valuation of these investments.
The valuation of these investments is considered to be one of the areas which required significant auditor attention and was one of the matter of most significance in the financial statements due to the materiality of the total value of investments to the financial statements.For other investments tested whether the Corporation has strictly complied with the policy.

V. Information other than the financial statements and Auditor's report thereon

The Corporation's Board of Directors is responsible for the other information. The other information comprises the information included in the Holding Corporation's Annual report but does not include the financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially in consistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the other information included in the above reports if we conclude that there is material misstatement therein we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations. We have nothing to report in this regard.

VI. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The Holding Corporation's Board of Directors is responsible for the preparation and presentation of the consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated financial position consolidated financial performance and consolidated cash flows of the Corporation in accordance with the requirements of the Insurance Act 1938 as amended by the Insurance Laws (Amendment) Act 2015 ('the Insurance Act') the Insurance Regulatory and Development Authority Act 1999 ('the IRDAI Act') the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations 2002 ('the IRDAI Financial Statements Regulations') orders/ directions issued by the Insurance Regulatory and Development Authority of India ('the IRDAI') the Companies Act ('the Act') including the accounting Standards specified under section 133 of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules 2014 ('the Accounting Standards'). The Board of Directors of the Corporation are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Corporation and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Corporation as aforesaid.

In preparing the consolidated financial statements the respective management and Board of Directors of the Corporation are responsible for assessing the ability of the Group 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 of the Corporation are also responsible for overseeing the financial reporting process of the Corporation.

VII.Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

i. Identify and assess the risks of material misstatement of the consolidated 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.

ii. 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 Corporation has adequate internal financial controls system in place and the operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management's 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 ability of the Corporation to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the consolidated 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 auditor's report. However future events or conditions may cause the Corporation to cease to continue as a going concern.

v. Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

vi. Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities within the Corporation to express an opinion on the consolidated financial statements. We are responsible for the direction supervision and performance of the audits of financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements which have been audited by the other auditors such other auditors remain responsible for the direction supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Holding Corporation and such other entities included in the consolidated financial statements of which we are the independent auditors 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 consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's 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.

VIII. Other Matters

a) Incorporated in these consolidated financial statements are unaudited accounts of subsidiary GIC Re South Africa ltd whose financial statements reflect total assets (net) of Rs. 17847278 thousand as at 31st March 2019 total revenues of Rs. 4780903 thousand and net cash flows of Rs. (149480) thousand for the year. The consolidated financials also include the Corporation's share of net profit of Rs. 1131332 for the year ended 31st March 2019 of the Associate Company Agriculture Insurance Company of India Ltd. which is based on the unaudited financials of the Associate company for the nine months ended on 31st December 2018. We have relied on the unaudited financial statements of the above Subsidiary and Associate company which have been consolidated on the basis of Management certified financial statements.

b) We did not audit the financial statements of one subsidiary GIC RE India Corporate Member London whose financial statements reflect total assets (net) Rs. 16232982 thousand as at 31st March 2019 total revenues Nil and net cash flows amounting to Rs. (748632) thousand for the year ended on that date as considered in the consolidated financial statements. The consolidated financial statements also include the Group's share of net profit/(loss) of Rs. 59680 thousand for the year ended 31st March 2019 as considered in the consolidated financial statements in respect of two associates whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and are considered for the purpose of consolidation.

c) Our Opinion on the Consolidated Financial statements in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and associates and our report in terms of sub-section (3) and (11) of section 143 of the Act in so far as it relates the aforesaid subsidiaries and associates based solely on the reports of the Management and other auditors. Our opinion is not qualified in respect of this matter.

IX. Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Companies Act 2013 and Insurance Regulatory and Development Authority (Preparation of financial Statements and Auditors' Report of Insurance Companies) Regulations 2002 and orders or direction issued by the Insurance Regulatory and Development Authority we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.

b. In our opinion proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.

c. The Consolidated Balance Sheet the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.

d. In our opinion the aforesaid consolidated financial statements comply with the Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules 2016 and have been drawn in accordance with the Insurance Act 1938 the IRDAI Act 1999 and the Act except for the Cash Flow Statement (Refer Note 12) which is prepared under Indirect Method whereas IRDAI regulations require Cash Flow Statement to be prepared under Direct Method.

e. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure A

f. On the basis of the written representations received from the directors of the Holding Corporation as on 31st March 2019 taken on record by the Board of Directors of the Holding Corporation and the reports of the statutory auditors of its subsidiary companies associate companies and jointly controlled companies incorporated in India none of the directors of the Group companies its associate companies and jointly controlled companies incorporated in India is disqualified as on 31st March 2019 from being appointed as a director in terms of section 164 (2) of the Act.

g. The actuarial valuation of liabilities is duly certified by the appointed actuary including to the effect that the assumptions for such valuation are in accordance with the guidelines issued by the Institute of Actuaries of India to its members and has been forwarded to IRDAI.

h. In our opinion and to the best of our information and according to the explanation given to us:

(i) The Consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group.

(ii) The Corporation 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.

(iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Corporation and its subsidiaries incorporated in India.

For J SINGH & ASSOCIATESFor SAMRIA & CO
Chartered AccountantsChartered Accountants
FRN: 110266WFRN: 109043W
J SINGHADHAR SAMRIA
PARTNERPARTNER
(Membership No: 042023)(Membership No: 049174)
Place : Mumbai
Date :23rd May 2019

Annexure - A to the Independent Auditors' Report of even date on the Consolidated Financial Statements of General Insurance Corporation of India

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

We have audited the internal financial controls over financial reporting of General Insurance Corporation of India (the Corporation) as of March 31 2019 in conjunction with our audit of the consolidated financial statements of the Corporation for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Corporation's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Corporation considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Corporation's 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 Corporation's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India.

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

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

Commensurate to the size and nature of the business we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Corporation's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Corporation's internal financial control over financial reporting 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 Corporation's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Corporation are being made only in accordance with authorisations of management and directors of the Corporation; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the Corporation's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion commensurate with the size & nature of business the Corporation has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31 2019 based on the internal control over financial reporting criteria established by the Corporation considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under section 143(3)(i) of the Act on the adequacy and operation effectiveness of the internal financial control over financial reporting in so far as it relates to an associate which is company incorporated in India is based on the corresponding information provided by the auditor.

For J SINGH & ASSOCIATESFor SAMRIA & CO
Chartered AccountantsChartered Accountants
FRN: 110266WFRN: 109043W
J SINGHADHAR SAMRIA
PARTNERPARTNER
(Membership No: 042023)(Membership No: 049174)
Place : Mumbai
Date : May 23 2019

ADDENDUM TO OUR AUDIT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF GENERAL INSURANCE CORPORATION OF INDIA DATED 23RD MAY 2019

With respect to the main directions issued by Comptroller and Auditor General of India undersection 143 (5) of the Companies Act 2013 based on our audit we report hereunder on the action taken and the financial impact on the accounts of the consolidated financial statements of the Corporation:

Sr. No.Directions under Section 143(5) of Companies Act 2013Action taken and Financial Impact
1Whether the Corporation has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated.The Corporation has system in place to process all the accounting transactions through IT systems except for -
1. Unexpired Risk Reserve (URR): The provision of URR is calculated manually based on the data extracted from the system and then the same is entered in the system. It is understood that the calculation of URR provision through system is under way.
2. Retro Recovery Claims: It is understood that claims recovery is processed manually and the data is maintained offline. After verification it gets entered in the system.
Consolidated financial statements are prepared outside of the ERP (SAP) employed by the Corporation. However the same does not fall within the purview of processing the accounting transaction and hence there is no impact of the same.
2Whether 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 Corporation due to the Corporation's inability to repay the loan? If yes the financial impact may be stated.Not Applicable as the Corporation does not have any outstanding borrowed money.
3Whether funds received/receivable for specific schemes from central/ state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation.Not Applicable. The Corporation is a re-insurance Company and it does not receive any funds directly from State / Central Agencies for specific schemes.

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

Sr. No.Additional Directions under section 143(5) of Companies Act 2013Action taken and Financial Impact
1Number 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's books of accounts may be verified and discrepancy found may be suitably reported.Their is no difference between title of ownership in respect of CGS/SGS/ bonds/debentures etc. available in physical/demat format vis-a-vis shown in books of accounts. There is no impact on the financial statements.
2Whether stop loss limits have been prescribed in respect of investments. If yes whether or not the limit was adhered to. If not the details may be given.The Annual Investment Policy 2018-19 of the Corporation as approved by the Board has not prescribed any stop-loss limits in respect of the investment activity. Stop-loss limits have been prescribed under the said policy in respect of scrips forming part of the equity trading portfolio. However the Corporation has not carried out any trading activity in equity during the year under consideration. There is no impact on the financial statements.
3a) Number of Capital Gearing Reinsurance treaties and Solvency Relief Treaties entered/renewed/signed by the Corporation during the year 2018-19During the year under audit the Holding Company has entered/renewed/signed 10 Capital Gearing Reinsurance Treaties.
b) Whether the Company has accounted premium commission claims paid claims outstanding at the end of the year claims outstanding at the beginning of the year deposit premium reserve loss reserve and Unexpired Risk Reserve of Capital Gearing Reinsurance treaties and Solvency Relief Treaties correctly as per terms and conditions of treaty agreements? If not shortfall/excess may be reported.In the absence of any specific IRDAI Guidelines on accounting of such treaties the accounting is done by the Corporation on the basis of the accounting policy adopted by the Corporation for other treaties except that no Unexpired Risk Reserve is created on such treaties in view of the fact that the loss to the extent of loss-ratio specified in each treaty is already provided for during the year. There is no impact on the financial statements.
c) Whether accounting policies adopted by the Corporation in respect of Capital Gearing Reinsurance treaties and Solvency Relief Treaties are appropriate and adequate?

 

For J SINGH & ASSOCIATESFor SAMRIA & CO
Chartered AccountantsChartered Accountants
FRN: 110266WFRN: 109043W
J SINGHADHAR SAMRIA
PARTNERPARTNER
(Membership No: 042023)(Membership No: 049174)
Place : Mumbai
Date : 14th June 2019

   

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