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New India Assurance Company Ltd.

BSE: 540769 Sector: Financials
NSE: NIACL ISIN Code: INE470Y01017
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VOLUME 25541
52-Week high 197.00
52-Week low 99.55
P/E 18.02
Mkt Cap.(Rs cr) 25,354
Buy Price 0.00
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Sell Price 0.00
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OPEN 157.40
CLOSE 157.30
VOLUME 25541
52-Week high 197.00
52-Week low 99.55
P/E 18.02
Mkt Cap.(Rs cr) 25,354
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

New India Assurance Company Ltd. (NIACL) - Auditors Report

Company auditors report

To the Members of The New India Assurance Company Limited Report on theAudit of the Standalone Financial Statements affairs of the Company as at March 31

I. Qualified Opinion and Loss Account We have audited thestandalone financial statements of The New India Assurance Company Limited ("theCompany") which comprise the Balance sheet as at March 31 2020 the RevenueAccounts of Fire Marine and Miscellaneous Insurance Business (collectively known as‘Revenue Accounts') Profit and Loss Account and the Receipts and PaymentsAccounts for the year then ended and notes to the standalone financial accountingstatements including a summary of significant policies and other explanatory informationin which are incorporated returns for the year ended on that date: (a) From Forty threeRegional offices (including 7 LCBO's) Four hundred and seventy six Divisionaloffices audited by the other firms of Auditors appointed by the Comptroller and AuditorGeneral of India under section 139 of the

Companies Act2013;

(b) From Nine Foreign Branches and Seven Foreign Agency offices auditedby local auditors appointed by the Company; and (c) From Two Foreign Run off offices andOne Foreign representative office which are unaudited prepared and furnished to us by themanagement.

In our opinion and to the best of our information and according to theexplanations given to us except for the effects of the matter described in the Basis forQualified Opinion section of our report the aforesaid standalone financial statementsgive the information required in accordance with the Insurance Act 1938 as amended by theInsurance Laws (Amendment) Act 2015 (‘the Insurance Act') the InsuranceRegulatory and Development Authority Act 1999 (‘the IRDA Act') the InsuranceRegulatory and Development Authority (Preparation of Financial Statements andAuditor's Report of Insurance Companies) Regulations 2002 (‘the IRDA

Financial Statements Regulations') orders/ directions issued bythe Insurance Regulatory and Development

Authority of India (‘the IRDAI') the Companies Act(‘the Act') including the accounting Standards specified under section 133 ofthe Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules 2014(‘the Accounting

Standards') to the extent applicable in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of 2020thestateof and the Revenue Accounts Profit

Receipts and Payments Accounts for the year ended on that date.

II. Basis for Qualified Opinion

(a) Balances due to/from persons or bodies carrying on InsuranceBusiness including reinsurers and the balances related to Co-insurance accounts aresubject to confirmations and reconciliation the ageing of these balances and recordsrelating to old balances are being compiled by the company. (Refer Note 10(a) and (b) of

Schedule 16B);

(b) Balances of Inter office accounts control accounts few Bankaccounts including those related to Pradhan

Mantri Fasal Bima Yojna (PMFBY) certain loans and other accounts atcertain offices are also pending for reconciliation/confirmation and consequentialadjustments effect of which if any is not ascertainable and cannot be commented upon.(Refer Note 10(c) and (d) of Schedule 16B).

(c) The impact on account of reconciliation relating to variousaccounts and balances under confirmation with respect to compliance of provisions relatingto TDS service tax and

GST which may arise out of such reconciliation (Refer Note 10(e) ofSchedule 16B).

(d) The Government of Rajasthan has withheld / deducted an amount of12009.19 Lakhs of the Company under

Bhamashah Health Insurance Scheme towards rejection of claims under thescheme and related matters since in the opinion of the management the same will berecovered no provision has been made effect of which if any is not ascertainable andcannot be commented upon (Refer Note 12 of Schedule 16B).

Overall impact of the above para (a) to (d) and the consequentialeffects on Revenue Accounts Profit and Loss Account and Balance Sheet as on March 312020 are not ascertainable and cannot be commented upon. (e) The Company had given optionto all the eligible current and retired employees by the Company to whom the scheme hasgiven an option for opting for pension scheme as per notification no. S.O. 1627 (E) dated23rd April 2019 on General Insurance (Employees) Pension Amendment

Scheme 2019. The Company has made provision for this pension liabilitybased on actuarial valuation on account of regular employees assuming amortization over aperiod of five year which is subject to IRDAI approval. Pending approval from IRDAI thebalance liability on account of regular employees amounting to 164056.00 Lakhs has notbeen charged to Profit and Loss account. The Profit Before Tax for the year and theReserve as at March 31

2020 are overstated to that extent (Refer Note 3 (c) of Schedule 16B).

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial

Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is a basis for our qualified opinion.

III. Emphasis of Matter

Without qualifying our report in respect of the following we drawattention to: i. Note No.3 (a) and (b) of Schedule 16B regarding Un-amortized Gratuity andPension Liability as per IRDA Circular. ii. Note No. 9 (f) of Schedule 16B regarding writeoff/ provisions made by the Company in respect of various equity and debenture exposuresas per accounting policy of the Company and IRDAI norms or as considered appropriate bythe management whichever is higher. iii. Note No 13 of Schedule 16B regarding BhavishyaArogya

Scheme an amount of 4247.33 lakhs received which are yet to beaccounted under appropriate heads pending compilation and ascertainment of relevantinformation and records.

iv. Note No. 18 of Schedule 16B regarding disclosure in respect oftotal future minimum lease payable under operating leases required as per AS 19‘Lease' has not been made in the standalone financial statement due tolimitation on management part to compile this information from all the office. v. Note No.25 of Schedule 16B regarding management is currently in process of identifying enterpriseswhich have been providing goods and services to the Company which qualify under thedefinition of medium and small enterprise as defined under Micro Small and MediumEnterprise Development Act 2006 and disclosure in respect of amount payable to suchMicro Small and Medium Enterprise as at March 31 2020 has not been made in thestandalone financial statement. vi. Note No. 27 of Schedule 16B regarding penalty leviedby the Government of Karnataka in respect of implementation of RSBY scheme which has beendisputed by the

Company since in opinion of the management the penalty will be droppedno provision has been made against this penalty. vii. Note No. 28 of Schedule 16Bregarding strengthening of Internal control System and Internal Audit specially in area ofdata input and validation in softwares Reinsurance accounts PMFBY and other Governmentsponsored appropriatetoprovide Health schemes requires strengthening. viii. Note No 34 ofSchedule 16B regarding the management's assessment of the financial impact due torestrictions and conditions related to COVID – 19 pandemic situation.

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

IV. Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Key Audit Matters Auditor's Response
No.
1. Claim Provisioning -
Insurance Claim is the major area of expense for the insurance company. The estimation of insurance contract liabilities involves a significant degree of judgement management estimate is involved based on the surveyor's report / feedback. The estimate of the claim is complex as it involves high degree of judgement. With regard to the claims provision the claim department will make provision for claims upon claim intimation and subsequently revised basis the surveyor's immediate loss assessment report. The estimates are revised again based on further information from surveyor. 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. The audit matters for verification of claims provisioning is handled at the regional and divisional office of the Company. The component auditors while auditing the whereclaim 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. Verified the claim provision with the surveyor's claim estimate and the company's feedback on the same. It may be noted that for all old outstanding large claims fresh estimates from surveyors were called for and the claim provisions were revised accordingly. 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 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 2020 is as certified by the Company's Appointed Actuary and we had verified the amounts and the related liability based on such report.
2. Outstanding dues receivable from the Government of We had verified the auditors report of regional auditor of
Rajasthan under Bhamshah Health Insurance Scheme:
The Government of Rajasthan has withheld / deducted an amount of 12009.19 Lakhs of the Company under Bhamashah Health Insurance Scheme towards rejection of claims under the scheme and related matters from the quarterly premium of past four financial years and in present circumstances recoverability of amount stated above is not ascertainable. The scheme was due for renewal in the month of December 2019 but the same was not renewed and discontinued by the Government of Rajasthan. There is no premium income from the said scheme after December 2019. Accordingly any lesser recovery will have consequential effect of lowering the stated value of asset. Accordingly profit of the Company will be affected with the consequential effect of non-recovery of the receivable amount. The management anticipates that it would be able to recover the entire amount from Government of Rajasthan in future. Jaipur Regional Office which had been audited by other firm of auditor whose report have been furnished to us and our opinion in so far as it relates to the amounts and disclosures included in respect of these regional on the report of such regional office of the regional office had concern on determination crystallization of penalty amount its chargeability to revenue and its nature of defaults as verified by them with terms and other documents verified by the regional office auditor. Accordingly the regional office auditors and we have issued a modified opinion on this subject matter. In view of the management of the Company they would be able to recover the entire withheld amount from the Government of Rajasthan under the said scheme.
3. Strengthening of Internal control System required -
On the basis of selective checks carried out during the course of our audit and according to the information and explanation given to us internal control weaknesses of material nature have been identified as at March 312020 with respect to: We had designed our audit procedures to access the Company's control risk. We had conducted control test to test the effectiveness of a control used by the Company to prevent or detect material misstatements. Based on the control test control weakness were identified in areas of reconciliation of various receivable/payable balances in area of data input and validation in various software manual processing of PMFBY claims etc.
a) Confirmation and reconciliation of various balances relating to co insurers reinsurers few bank accounts balances pertaining to service tax inter office accounts and other control accounts are pending and are at various stages; The Company is advised to strengthen the Internal Audit specially in area of data input and validation in software Reinsurance accounts PMFBY and other Government sponsored Health schemes as the entire revenue accounting is dependent on systems of the Company. The impact of pending reconciliation if any on the standalone financial statements is unascertainable. Hence these areas are highlighted in paragraph of opinion and emphasis of matter in the audit report.
b) Inadequate controls are observed with regard to ageing of insurance receivables;
c) Manual processing of claims for PMFBY system module of claims is not utilized for processing the same;
d) The Company's internal control systems especially in area of data input and validation in various software and recording of intimated claims at the offices of the company.

V. Information other than the standalone financial statements andAuditor's report thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor'sreport thereon. The Annual report is expected to be made available to us after the date ofthis auditor's report.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information included in the above reports if weconclude that there is material misstatement therein we are required to communicate thematter to those charged with governance and determine the actions under the applicablelaws and regulations.

VI. Responsibilities of Management and Those Charged with Governancefor the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and receipts and payments of the Company inaccordance with the accounting principles generally accepted in

India including the accounting Standards specified under section 133of the Act the requirements of the Insurance Act the IRDAI Financial StatementsRegulations and the orders /directions and circulars issued by the IRDAI in this regardto the extent applicable and in the manner so required. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

VII. Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with Standard on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

As part of an audit in accordance with Standard on

Auditing we exercise professional judgment and maintain professionalskepticism throughout the audit. We also: i. Identify and assess the risks of materialmisstatement of the Standalone financial statements whether due to fraud or error designand perform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control. ii. Obtain an understanding of internal control relevant tothe 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 forexpressing our opinion on whether the company has adequate internal financial controlssystem in place and the operating effectiveness of such controls. iii. Evaluate theappropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management. iv. Conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and based on the auditevidence obtained whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the

Company's ability to continue as a going concern.

If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report.However future events or conditions may cause the Company to cease to continue as a goingconcern. v. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of

We the financial statements may be influenced. consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of anyidentifiedmisstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant in internal control that we identify during our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

VIII. Other Matters i. We did not audit the financial statements ofForty Three Regional offices (including 7 LCBO's) Four hundred and seventy sixDivisional offices Nine Foreign Branches and Seven Foreign Agency offices included inthe standalone financial statements of the Company whose financial statements reflecttotal assets of Rs 1433533.72 Lakhs as on March 31 2020 and total revenues of2859305.80 Lakhs for the year ended on that date as considered in the standalonefinancial statements. The financial statements / information of these offices have beenaudited by the other firm of auditors whose reports have been furnished to us and ouropinion in so far as it relates to the amounts and disclosures included in respect ofthese offices is based solely on the report of such component auditors. ii. We haverelied on the financial statements of two Foreign Run off offices and one representativeoffice included in the standalone financial statements of the Company whose financialstatements reflect total assets of Rs 296.17 Lakhs as on March 31 2020 and total revenuesof 0.12 Lakhs for the year ended on that date as considered in the standalone financialstatements which have been furnished to us by the management and our audit report in sofar as it relates to the amounts included in respect of the said foreign branches issolely based on the financial statements furnished by the management which has not beensubject to audit in their respective countries. iii. The actuarial valuation of liabilityin respect of Claims Incurred but Not Reported (IBNR) and those Incurred but Not EnoughReported (IBNER) as at March 31 2020 is as certified by the Company's Appointed

Actuary and our opinion in so far as it relates to the amounts anddisclosures related to such liability is based solely on such report. The AppointedActuary has also certified that the assumptions considered by him for such valuations arein accordance with guidelines and norms prescribed by the Insurance Regulatory andDevelopment Authority of India (IRDAI) and the Actuarial Society of India in concurrencewith the IRDAI. We have relied upon on the Appointed Actuary's certificate in thisregard for forming our opinion on the financial statements of the Company. iv. Due to theCOVID-19 pandemic lockdown and other restrictions imposed by the Government and localadministration the audit processes were carried out based on the remote access to theextent available/ feasible and necessary records made available to us by the managementthrough digital medium.

Our opinion is not modified in respect of this matter.

. Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act 2013 and InsuranceRegulatory and Development Authority

(Preparation of financial Statements and Auditors' Report ofInsurance Companies) Regulations 2002 and orders or direction issued by the InsuranceRegulatory and

Development Authority we report that: a) We have sought and except forthe matters described in the Basis for Qualified Opinion paragraph obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit. b) Except for the possible effects of the matter describedin the Basis for Qualified Opinion paragraph above in our opinion proper books ofaccounts have been maintained by the Company so far as it appears from our examination ofthose books and proper returns both audited and unaudited from Regional officesDivisional Offices branches and offices not visited by us have been received. c) Thereports of the Regional Auditors consolidating the Divisional Auditors report Reports offoreign branches and foreign agency offices audited under section143(8) of the Act by thecomponent auditors have been sent to us and have been properly dealt with by us inpreparing this report in the manner considered necessary by us. d) The Balance Sheet theRevenue Account Profit and Loss Account and the Receipt and Payment

Account dealt with by this Report are in agreement with the books ofaccount and with the returns received from offices not visited by us. e) Except for thepossible effects of the matter described in the Basis for Qualified Opinion paragraphabove in our opinion the aforesaid standalone financial statements have been prepared inaccordance with the requirements of the Insurance Act 1938 (4 of 1938) the InsuranceRegulatory and Development Act 1999 (41 of 1999) and the Companies Act

2013 to the extent applicable and in the manner so required. f) Exceptfor the possible effects of the matter described in the Basis for Qualified Opinionparagraph in our opinion the aforesaid Standalone Financial

Statements comply with the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. g) On the basisof the written representations received from the directors as on March 31 2020 taken onrecord by the Board of Directors none of the directors is disqualified as on March 312020 from being appointed as a director in terms of Section 164 (2) of the Act. h) Theaccounting policies adopted by the company are appropriate and in compliance with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014 and with the Accounting Principles as prescribedin the Insurance Regulatory and Development Authority

(Preparation of financial Statements and Auditors' Report ofInsurance Companies) Regulations 2002 and orders or direction issued by the Insurance

Regulatory and Development Authority except for the possible effectsof the matter described in the Basis for Qualified Opinion paragraph above. i) Theactuarial valuation of liability in respect of claims Incurred but Not Reported (IBNR) andthose Incurred but Not Enough Reported (IBNER) as at March 31 2020 have been dulycertified by the Company's Appointed Actuary and relied upon by us. The AppointedActuary has also certified that the assumptions considered by him for such valuations arein accordance with guidelines and norms prescribed by the Insurance Regulatory andDevelopment Authority of India (IRDAI) and the Actuarial Society of India in concurrencewith the IRDAI. j. As per the information and explanations provided to us the investmentshave been valued in accordance with the provisions of the Insurance

Act the regulations and orders/directions issued by

IRDAI in this regard. k. Further on the basis of our examination ofbooks and records of the company and according to the information and explanation given tous and to the best of our knowledge and belief we certify that: i. We have reviewed themanagement report attached with the Standalone Financial Statements and there are noapparent mistakes or material inconsistencies between the management report and thestandalone financial statements; ii. Based on the management representation made by themanagement of the company charged with compliance nothing has come to our attention whichcauses us to believe that the company has not complied with the terms and conditions ofregistration as stipulated by

IRDAI; and iii. No part of the assets of the policyholders' fundshas been directly or indirectly applied in contravention of the provisions of theInsurance

Act 1938 (4 of 1938) relating to the application and investments ofthe policyholders' funds. l) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its standalone financial statements Refer Note 1 of Schedule16C to the standalone financial statements; ii. The Company has made provision asrequired under the applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts – The liabilityfor Insurance

Contracts is determined by the Company's

Appointed Actuary and is covered by the

Appointed Actuary's certificate referred to

Other Matter paragraph above on which we have placed reliance; and theCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses; iii. There were no amounts which were requiredto be transferred to the Investor Education and Protection Fund by the Company. m) Withrespect to the other matters to be included in the Auditors' Report in accordancewith the requirement of section 197(16) of the Companies Act 2013 as amended we reportthat the provisions of section

197 of the Act are not applicable to the company vide notification No.GSSR 463(E) dated 5th June

2015. Hence reporting u/s 197(16) of the Act is not required. n) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure A". o) As required under section 143(5) of the Companies Act 2013based on our audit as aforesaid we enclose herewith as per "Annexure B" thedirections including additional directions issued by the Comptroller and Auditor Generalof India action taken thereon and the financial impact on the accounts and standalonefinancial statements of the

Company.

For NBS & Co For Mukund M. Chitale & Co
Chartered Accountants Chartered Accountants
Firm Reg. No. 110100W Firm Reg. No. 106655W
Devdas Bhat Abhay. V. Kamat
Partner Partner
M. No. – 048094 M. No. – 039585
UDIN: 20048094AAAACC6950 UDIN: 20039585AAAAEC1544
Place: Mumbai
Date: June 30 2020.

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF THE NEW INDIA ASSURANCE COMPANY LIMITED

(Referred to in paragraph IX (n) of our Report on Other Legal andRegulatory Requirements forming part of the Independent Auditors' Report dated June30 2020)

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

We have audited the internal financial controls over financialreporting of THE NEW INDIA ASSURANCE CO LTD. ("the Company") as of March31 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date. These standalone financial statementsincorporated returns received: a) From Forty three Regional offices (including 7LCBO's) Four hundred and seventy six Divisional offices audited by the other firmsof Auditors appointed by the Comptroller and Auditor General of India under section 139 ofthe

Companies Act2013; b) From Nine Foreign Branches and Seven ForeignAgency offices audited by local auditors appointed by the company; and c) From Two ForeignRun off offices and One representative office which are unaudited prepared furnished tous by the management.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants ofIndia"("the Guidance Note"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that and efficientwere operating effectively conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the

Act to the extent applicable to an audit of internal financialcontrols both issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

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

We believe that the audit evidence we have obtained is sufficientopinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

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

Other Matter

The actuarial valuation of Policy Liabilities as at March 31 2020 hasbeen duly certified by the Appointed Actuary of the

Company and has been relied upon by us as mentioned in

Para VIII (iii) of our Audit Report on the standalone financialstatements for the year ended March 31 2020. Accordingly our opinion on the internalfinancial controls over financial reporting does not include reporting on the adequacy andoperative effectiveness of the internal controls over the valuation and accuracy of theaforesaid actuarial liabilities.

Qualified Opinion

On the basis of selective checks carried out during the course of ouraudit and according to the information and explanation given to us and based on the reportof external consultant appointed to assess the internal financial control framework in theCompany the following internal control weaknesses of material nature have been identifiedas at March 31 2020: a. Confirmation and reconciliation of various balances relating toco insurers reinsurers few bank accounts inter office accounts and other controlaccounts are pending and are at various stages; b. Inadequate controls are observed withregard to ageing of insurance receivables with respect to Coinsurance Reinsurance andothers; c. Manual processing of claims for PMFBY system module of claims is not utilizedfor processing the same; d. The Company's internal control systems especially in areaof data input and validation in various software and recording of intimated claims at theoffices of the company including internal audit require strengthening. A ‘materialweakness' is a deficiency or a combination of deficiencies in internal financialcontrol over financial reporting such that there is a reasonable possibility that amaterial misstatement of the company's financial statement will not be prevented ordetected on a timely basis.

In our opinion except for the possible effects of the internal controlweaknesses described above on the achievements of the objectives of the control criterionthe company has maintained in all material respects adequate internal financialcontrol over financial reporting and such internal financial controlsoverfinancialeffectivelyas reportingwereoperating of March 312020 based on "the internal controlover financial reporting criteria established by the Company considering the essentialcomponents 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 determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2020standalone financial statements of the Company and these material weaknesses do notaffect our opinion on the Standalone financial statements of the Company except to theextent of our qualification as contained in our separate report on the Standalonefinancial statements of the company.

For NBS & Co For Mukund M. Chitale & Co
Chartered Accountants Chartered Accountants
Firm Reg. No. 110100W Firm Reg. No. 106655W
Devdas Bhat Abhay. V. Kamat
Partner Partner
M. No. – 048094 M. No. – 039585
UDIN: 20048094AAAACC6950 UDIN: 20039585AAAAEC1544
Place: Mumbai
Date: June 30 2020.

ANNEXURE "B" REFERRED TO IN PARA IX (o) IN REPORT ON OTHERLEGAL AND REGULATORY MATTERS REFERRED TO IN OURS STATUTORY AUDIT REPORT OF EVEN DATE FORTHE YEAR 2019-20 ON THE ACCOUNTS OF THE NEW INDIA ASSURANCE COMPANY LIMITED

Sr Directions under Section 143(5) of
Action taken and Financial Impact
No. Companies Act 2013
1 Whether the company has system in place The Company has system in place to process all the accounting
to process all the accounting transactions transactions through IT systems except for –
through IT system? If yes the implications of
1. Facultative Inward business where it is understood that the
processing of accounting transactions outside
process of generating through system is under way. Though
IT system on the integrity of the accounts along
manual controls are available they may not suffice and Facultative
with the financial implications if any may be
Inwards are also required to be routed through system.
stated.
2. Pradhan Mantri Fasal Bima Yojana where it is understood that
though the systems are in place the claims related to the Pradhan
Mantri Fasal Bima Yojana are processed manually.
3. IFSC GIFT City office Gandhinagar is the only office in India
rendering the reinsurance service in foreign currency having
the Accounts in Tally software. The transactions are reviewed/
authorised by Region-in charge and approved as per the financial
authority established in the Company. Plans have already been
initiated by the Company to have Reinsurance driven software
used by Head Office and roll out for testing purposes is already
scheduled on July 15 2020 and implementation is expected to
start from August 2020.
2 Whether there is any restructuring of an existing Not Applicable.
loan or cases of waiver/write off of debts /loans/
interest etc. made by a lender to the company
due to the company's inability to repay the
loan? If yes the financial impact may be stated.
3 Whether funds received/receivable for specific The Company received part of subsidy relating to PMFBY/RSBY
schemes from central/ state agencies were scheme from central and state agencies. Funds received/receivable
properly accounted for/ utilized as per its term under PMFBY/RSBY scheme from Central/State agencies were
and conditions? List the cases of deviation. accounted for/utilised as per its terms and conditions and no deviation
is observed.

Additional directions issued by C&AG of India as applicable to TheNew India Assurance Company Limited for the year 2019-20

1

Number of titles of ownership in respect of

The Central Government/ State Government securities balances are

CGS/SGS/Bonds/Debentures etc. available in

tallied as per the Books of Accounts. In case of Bonds/Debenture/

physical/demat form and out of these number

Equities/Preference Shares there are 5 numbers of Scrips of Bonds/

of cases which are not in agreement with the

debentures having face value of 4838000 and 8 scrips of Equity

respective amounts shown in the Company's

shares having Book Value of 1026072/- which are in shortage as per

books of accounts may be verified and

the records of custodian vis-a-vis books of accounts of the Company.

discrepancy found may be suitably reported.

The Company has fully provided these amounts which are short as

per records of custodian. The Company has not received the interest/

dividend on these investments.

One scrip in preference share of face value 3600/- is in excess

quantity as per custodian records vis-a-vis books of the company. The

Company is in the process of taking adequate steps for reconciliation

and adjustment wherever required. The dividend received on such

excess shares is shown as liability and taken to income after 3 years.

2

Whether stop loss limits have been prescribed

As informed to us the investments of the Company are long term in

in respect of the investments. If yes whether or

nature and therefore Stop loss policy is not applicable for the long-term

not the limit was adhered to. If no details may

investments. As and when the Company proposes to have a trading

be given.

portfolio it will frame stop loss policy for trading portfolio at that time.
3

Whether Company has carried out reconciliation

As informed to us reconciliation and settlement of Coinsurance

exercise for inter-company balances reflected offices balanceswerecarriedoutacrossall throughout the year by the

in their financial statements with other PSU

Company.

insurers and whether confirmation has been

Importance was given to clear old balances and out of the total

obtained from other PSU insurers for balances

952714.94 Lakhs settled during the year 579835.93 Lakhs (PSUs

due from them?

469103.36 Lakhs and Private 110732.57 Lakhs) were related to
more than one year balance. This has reduced the old balances.
The age wise details of settlement are given below: -
(Amount in Cr.)
Description 2019- 2018- 2017- PRIOR TOTAL
20 19 18
Premium received 879 544 431 79 1933
Claims received 664 445 503 124 1736
Total received 1543 989 934 203 3670
Premium paid 1346 973 608 303 3230
Claims paid 840 622 439 727 2628
Total paid 2186 1595 1047 1029 5858
Volume 3729 2585 1981 1233 9527
Percentage 39% 27% 21% 13%
As informed to us the company is planning to continue focus on clearing old balances in 2020-21 also. Balance appearing in the amount due to/ due from persons or bodies carrying on insurance business including reinsurance business except terrorism Pool and Nuclear Pool with GIC Re are subject to confirmation/ reconciliation and consequential adjustments if any. These balances include 234008.81 lakhs (Net) Dr. comprising of debit balances of 500248.62 lakhs and credit balances of 266239.81 lakhs against which party-wise balances in the records indicate (Dr.) of 494463.26 lakhs relating to 903 parties and (Cr.) of 260454.45 lakhs relating to 896 parties. As against these amounts the company is maintaining a provision of 12414.56 Lakhs up to March 31 2020 towards doubtful debts as a prudent measure. The Company has not received balance confirmation relating to the reinsurance business.
Precise gross debit and gross credit balances against each of such parties and age-wise analysis of these balances are also being compiled. These balances include old cases including migration for which supporting records are being identified and differences necessary action is being taken. The Impact of the above if any on the standalone financial statements are unascertainable. Refer note no. 10 (a) and (b) of Schedule 16B of the Standalone Financial Statement for reconciliation related matter with respect to Coinsurance and Reinsurance balances. We have issued modified opinion in this independent audit report with regards to this matter.
4 (a) Whether the method of accounting of premium and reported claims are as per conditions of agreement/scheme relating to Pradhan Mantri Fasal Bima Yojana As informed to us in F.Y. 2019-20 the company has implemented Pradhan Mantri Fasal Bima Yojana (PMFBY/ Restructured Weather Based Crop Insurance Scheme (RWBCIS) in the following 3 states:
1. Uttar Pradesh (PMFBY & RWBCIS)- Kharif 2019 and Rabi 2019-20
2. Madhya Pradesh (PMFBY)- Kharif 2019 and Rabi 2019-20
3. Himachal Pradesh (PMFBY & RWBCIS)- Kharif 2019 & Rabi 2019-20 The Company's net share of Premium accounted under Crop insurance portfolio for the year 2019-20 is 202267.57 Lakhs. The Company's net share of claims paid during the year 2019-20 is 203398.46 Lakhs. These claim disbursements pertain to the years 2016-17 2017- 18 2018-19 and 2019-20 on part claims approved till date. The major data for claims for the year 2019-20 is yet to be received by the Company from the respective state governments.
In case of Pradhan Mantri Fasal Bima Yojana enrolment data and premium data as per Banks/CSC/ Online is to be reconciled with data as per the "National Crop Insurance Portal" (NCIP) of Government Of India. Accounting of premium as well as reinsurance accounts has been done based on portal data after giving effect of reconcilable items. Since majority of claims for 2019-20 have not been reported and majority of the actual yield data is yet to be received from the state governments provision for outstanding claims have been made based on IBNR claims as assessed by the actuary. Necessary adjustments relating to the above data are to be carried out in due course. As informed to us the Company is in the process of strengthening internal controls and internal audit in the area of PMFBY to ensure the compliance of laid down operational guidelines issued by Ministry of Agriculture Government Of India.
Refer note no. 10 (d) of Schedule 16B of the Standalone Financial Statement for reconciliation of enrolment data and premium data as per Banks with the Central/State Government portal is under process and full yield data is not available for the crop year 2019-20 hence precise amount of claims liability admissible is not yet determined. We have issued modified opinion in this independent audit report with regards to this matter.
4 (b) Whether the method of accounting of premium and reported claims are as per conditions of agreement/scheme relating to Rashtriya Swasthya Bima Yojana (RSBY) As informed to us in F.Y. 2019-20 the Company has implemented the RSBY Schemes in the 6 states while accounting the Gross Direct Premium of 62623.77 lakhs. Claims paid during F.Y. 2019-20 under RSBY Schemes are 92212.64 lakhs and that of Outstanding Claims are of 7499.95 lakhs. The accounting for the same has been done as per the agreement/ scheme.
4 (c) Whether the method of accounting of premium and reported claims are as per conditions of agreement/scheme relating to Prime Minister Jan Arogya Yojana As informed to us in F.Y. 2019-20 the Company has not undertaken any business under the Prime Minister Jan Arogya Yojana.
5 Whether the Company has complied with IRDAI circular (No. IRDA/F&A/CIR/MISC/052/03/2018 dated 27 March 2018) regarding exemption of re-insurance scheme of specified insurance schemes such as Pradhan Mantri Fasal Bima Pradhan Mantri Fasal Bima Yojana on direct business is exempted from GST. The same is Re-Insurance driven product and the industry represented to GST Council for exemption of GST on the ceded premium also.
Yojana Pradhan Mantri Suraksha Bima Yojana etc. from the purview of GST and passed on the insured/Governmentthebenefitof reduction in premium. As informed to us while pricing the product the GST on ceding premium has not been factored by the Company. Therefore since the premium has not been loaded for GST on the ceded amount passing on the benefit to the customer/government does not arise.
Similarly in the case of Bhamashah Premium with Government of Rajasthan there has been no factoring of GST on ceding premium in the pricing of the product and therefore passing on the benefit to the customers/government does not arise.
As informed to us in case of other Government schemes like Pradhan Mantri Suraksha Bima Yojana etc the Company has not entered into any re-insurance arrangement.
6. Whether the Company has enhanced/ modified the provisions for compensation for hit and run victims as per Section 161 of the Vehicles (Amendment) Act 2019 applicable from 1 September 2019 and if so whether it is adequate. The amendment Motor Vehicle Act in respect of Hit and Run victims as proposed is yet to be brought into operation by the Government and corresponding Rules are yet to be implemented.
Secondly in accordance with section 161 of the Act Government will constitute a motor vehicle accident fund which will take care of many other things apart from hit and run cases. The constitution of the fund its administration operation and funding pattern are yet to be given shape and right now has no impact on the accounts of the insurance companies.
As informed to us Solatium Fund is segregated from the Company though handled by the Company itself the amounts paid are shown as receivable from the Fund and is not a cost to the Company.
7. Whether entire input tax credit (ITC) available on GST portal in respect of the company has been availed within prescribed time limits. A major component of the cost falls under the RCM category and the same is done through system simultaneously.
As informed to us under Co-sharing transactions/ Cross charging transactions the system facilitates discharge of GST liability and input happens concurrently for the company as a whole.
For a portion of the expenses where input is claimed based on the valid invoices received from the suppliers necessary validation checks are incorporated in the system and on compliance of the validations the system allows for claiming input. Input GST is claimed in respect of those invoices for which actual payment has been made. Input is not claimed on those invoices lying unpaid as the same can be availed upto September 30 2020 for those invoices raised during the F.Y 2019- 20. 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 would be reflected in the GSTR 2A but would not have been availed. In the light of above it can be concluded that GSTR 2A is a dynamic report wherein there are constant changes occurring based on the filing status of GSTR 1 by the vendors. Hence any reconciliation done between GSTR 2A and GSTR 2 at a particular point of time is subject to changes at a future date. As informed to us a Robotic Automation Process is being developed by the Company which would reconcile the GSTR 2 and GSTR 2A data on a continuous basis. This has been done by the Company keeping in mind the volume of transactions and the complexity involved in the said reconciliation in order to assist the Operating offices/ Regions to follow up with their Vendors for filing of return and corrections if required. Based on the above facts and as per information and explanation given by the Company it can be inferred that the Company have availed the eligible input credit diligently as per the provisions of GST law to the extent possible.
8. Whether premium and claims in respect of foreign operations if any have been accounted for correctly and reconciled with actual figures of these operations (wherein accounting year is different for foreign operations) As informed to us Fiji and Bangkok Branches are following ‘Calendar year' as the Accounting year. Premiums and claims of these offices have been accounted correctly and reconciled with actual figures of their operations.
For NBS & Co For Mukund M. Chitale & Co
Chartered Accountants Chartered Accountants
Firm Reg. No. 110100W Firm Reg. No. 106655W
Devdas Bhat Abhay. V. Kamat
Partner Partner
M. No. – 048094 M. No. – 039585
UDIN: 20048094AAAACC6950 UDIN: 20039585AAAAEC1544
Place: Mumbai
Date: June 30 2020.

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION143 (6)(b) OF THE COMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF THE NEW INDIAASSURANCE COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2020

The preparation of financial statements of The New India

Assurance Company Limited for the year ended 31 March

2020 in accordance with the financial reporting framework prescribedunder the Insurance Act 1938 read with Insurance

Regulatory and Development Authority (Preparation of FinancialStatements and Auditor's Report of Insurance

Companies) Regulations 2002 and Companies Act 2013

(Act) is the responsibility of the management of the company. Thestatutory auditors appointed by the Comptroller and Auditor General of India under section139 (5) of the Act are responsible for expressing opinion on the financial statementsunder section 143 of the Act based on independent audit in accordance with the standardson auditing prescribed under section 143 (10) of the Act. This is stated to have been doneby them vide their Audit Report dated 30 June 2020.

I on behalf of the Comptroller and Auditor General of India haveconducted a Supplementary Audit of the financial statements of The New India AssuranceCompany Limited for the year ended 31 March 2020 under section 143 (6)(a) of the Act. Thissupplementary audit has been carried out independently without access to the workingpapers of the statutory auditors and is limited primarily to inquiries of the statutoryauditors and company personnel and a selective examination of some of the accountingrecords.

Based on my supplementary audit I would like to highlight the the Actfollowing significant which have come to my attention and which in my view are necessaryfor enabling a better understanding of the financial statements and the related auditreport:

I. COMMENT ON PROFITABILITY

Standalone Marine Insurance Revenue Account for the year ended 31stMarch 2020 Claims Incurred (Net) Schedule Rs 2921070 (000)

The above does not include updated provision of Rs 88.01 crore inrespect of Marine Hull Claim for loss of IRO Jacket related to M/s L&T HydrocarbonEngg. Ltd. The event was intimated on 10 March 2020 and based on the first interim reportdated 26.04.2020 the Company updated the provisions and sent

(27.05.2020) communication to coinsurer for updating their share ofprovisions required. However the Company has not updated their own share of provision.Since this is a material event occurring between the Balance Sheet date and the date onwhich the financial statements are approved (30 June 2020) and indicate the need foradjustments to assets and liabilities as at the balance sheet date as per Para 8.1 of AS 4titled 'Contingencies and Events occurring after the Balance

Sheet Date' the short provision has resulted in understatement ofincurred claims and overstatement of profit by Rs 88.01 crore.

II. COMMENTS ON FINANCIAL POSITION Standalone Balance Sheet as at 31stMarch 2020 B. Application of Funds 5(d) Provisions Schedule 14 Rs 130022163 (000)

5. Others -Provision for Diminution in value of ThinlyTraded/Unlisted Shares Rs 33743 (000) Notes forming part of Standalone FinancialStatements - Note 9 (f) (iii) (b)(c)(d)

1. The Company invested Rs 74.84 crore in Non-convertible secureddebentures (NCDs) of Dewan Housing Finance Corporation Limited (DHFL). The Company hasmade a provision of Rs 37.42 crore i.e 50 per cent towards diminution in value ofinvestments during the year 2019-

20. The credit rating of DHFL was downgraded to 'ID' rating by CARErating agency in June 2019 and DHFL defaulted on payment of interest due on August 162019. Reserve Bank of India filed an application for initiation of corporate insolvencyresolution process against DHFL (November 2019) and NCLT has admitted the same (December2019). Considering the uncertainty in realization of the investment the Company shouldhave created full provision against the investment. This has resulted in understatement ofprovision for diminution in value of investments and overstatement of profit by Z

37.42 crore.

2. The Company has invested Rs 290.31 crore in NCDs of Reliance CapitalLtd (RCap). RCap defaulted on interest payment due on 19.10.2019 and the Company has madea provision of Rs 87.09 crore i.e. 30 per cent towards diminution in value of investmentsduring the year 2019-20.

Review of adequacy of provisions by Audit revealed that the Companyshould have created 100 per cent provision on the secured portion also in view of thefollowing:

• RCap has incurred heavy losses (Rs 5465 crore) during the year2019-20.

• Statutory Auditors of RCap have expressed material uncertaintyregarding the ability of RCap to continue as a Going concern.

• Debenture Trustee has initiated proceedings against the Companybefore the Debt Recovery Tribunal Mumbai.

• Credit rating of RCap has been downgraded from

'CARE A+' (April 2019) to 'CARE D; Issuer Not Cooperating' (April 2020)The short provision has resulted in understatement of provision for diminution in value ofinvestments and overstatement of profit by Rs 203.22 crore (Rs 290.31crore - Rs 87.09crore).

3. The Company has invested Rs 114.97 crore in NCDs of Reliance HomeFinance Ltd (RHFL) a subsidiary of RCap.

RHFL defaulted on interest payment due on 26.10.2019 and the Companyhas made a provision amounting to Rs 34.49 crore i.e. 30 percent towards diminutionin the value of Investments during the year 2019-20. Review of adequacy of provisions byAudit revealed that the Company should have created 100 per cent provision on the securedportion also in view of the following: y Security cover for NCDs has fallen belowthe outstanding amount indicating erosion. y During the year 2019-20 RHFL hadincurred a loss of Rs567.28 crore in 2019-20 as compared to profit before tax of Rs 101.60crore in 2018-19.

y The statutory auditors of RHFL have qualified (y/e

31.3.2020) their report that majority of the borrowers have overdues inloan repayments (including NPA of Rs 4778.13 crore) and hence recoverability of principaland interest could not be substantiated. Further many borrowers have undertaken onwardlending operations and the recovery of these borrowings depend on external factors notwholly within control of RHFL /borrower. y The rating of RHFL has been downgradedfrom A+ in (April 2019) to D (September 2019).

The short provision has resulted in understatement of diminution invalue of investments and overstatement of profit by Rs 80.48 crore (Rs 114.97 crore - Rs34.49 crore).

Place: Mumbai (P V Hari Krishna)
Date: 25.09.2020 Principal Director of Audit (Shipping)

.