(2) I ncludes disputed refund / demand (including interest and penalty) of ' 4,357,261 thousand (previous year: ' 3,959,501 thousand) from Service Tax Authorities / Goods & Service Tax Authorities / Jammu and Kashmir Sales Tax, the appeals of which are pending / in the process of being filed before the appropriate Authorities. Further, ' 98,864 thousand (previous year: ' 176,390 thousand) has been paid at the time of filing CESTAT/Commissioner Appeal as per the provisions of the Finance Act, 1994/ GST Act
(3) During the year the Company has received an Order along with Notice of Demand dated May 29, 2023 for FY 2014-15 (A.Y. 2015-16) for ' 941,396 thousand (including interest) on account of denial of exemptions (for interest, dividend income and long-term capital gains) claimed under Sections 10 of the Income Tax Act, 1961. The same has been included in contingent liability. The Company has filed an appeal with the Commissioner of Income Tax (Appeal) against the said Order on June 27, 2023. The matter relates to an industry wide issue of claiming exemption under Section 10 by insurance companies and is not specific to the practices of the Company.
(5) Excludes, payment of ' 1,041,319 thousand under protest pursuant to a GST proceeding on account of alleged ineligible input tax credit claim and applicability of GST on salvage adjusted on motor claims settled during the period from July 2017 to March 2022. The Company has been advised that its tax position on both the matters is legally valid and that the Company should not be liable to pay the said amounts. Accordingly, the Company has treated the amount paid as deposit under “Advances and Other Assets" as at March 31, 2024. Further, the Company will file refund for these amounts in due course.
(6) Excludes, GST of ' 500,000 thousand deposited under protest during an ongoing proceeding evaluating Input Tax Credit entitlement on certain marketing expenses for the period from July 2017. The Company has not received a Show Cause Notice in the matter; however, the Company believes that the adopted tax position is legally tenable. Accordingly, the Company has treated the amount paid as deposit under “Advances and Other Assets" as on March 31, 2024.
5.1.2 The assets of the Company are free from all encumbrances except for fixed deposits of ' 7,250 thousand (previous year: ' 8,885 thousand) (Included in short term deposit account in Schedule - 11) for issuing bank guarantees and items included in Note 5.1.1 above.
5.1.3 Capital Commitments
Estimated amount of commitment pertaining to contracts remaining to be executed in respect of fixed assets (net of advances) is ' 496,059 thousand (previous year: ' 770,489 thousand).
5.1.4 Commitment in respect of loans is ' NIL (previous year: ' NIL) and investments is ' 940,369 thousand (previous year: ' 1,134,770 thousand).
Claims settled and remaining unpaid for more than six months is ' Nil (previous year: ' NIL).
Claims where the claim payment period exceeds four years:
As per circular F&A/CIR/017/May-04, the claims made in respect of contracts where claims payment period exceeds four years, are required to be recognised on actuarial basis. Accordingly, the Appointed Actuary has certified the fairness of the liability assessment, assuming ‘NIL' discount rate.
In this context, the following claims have been valued on the basis of a contractually defined benefit amount payable in monthly installments.
5.1.9 (A) Investments
Value of contracts in relation to investments for:
• Purchases where deliveries are pending ' 58,460 thousand (previous year: ' NIL); and
• Sales where payments are due is ' NIL (previous year: ' Nil ).
Historical cost of investments that are valued on fair value basis is ' 80,593,627 thousand (previous year: ' 73,823,417 thousand).
All investments are made in accordance with Insurance Act, 1938 and Insurance Regulatory and Development Authority of India (Investment) Regulations, 2016 and are performing investments. The policy holders funds have not been directly or indirectly invested outside India.
(B) Allocation of investment income
Investment income which is directly identifiable is allocated on actuals to revenue account(s) and profit and loss account as applicable. Investment income which is not directly identifiable has been allocated on the basis of the ratio of average policyholder's investments to average shareholder's investments, average being the balance at the beginning of the year and at the end of the reporting period. Investment income on Investments of Unclaimed amount of policyholders is recognized as liability under Schedule 13 -Unclaimed Amount of Policyholders.
Further, investment income across segments within the revenue account(s) has also been allocated on the basis of average of unexpired Risk and claims outstanding net off outstanding premium of the respective segments.
5.1.10 Allocation of expenses
Allocation / apportionment of Operating Expenses is based on the Organisational Structure of the Company comprising of Business, Service and Support Groups. Business comprises of Corporate Business Group, Retail Business Group (including Sub Groups), Emerging Markets Business Group and Government Business Group. Expenses incurred by Business Groups are direct in nature. Service Group comprises of Customer Service Group which consists of Underwriting and Claims Group, created based on product segments. Support Group consists of Investments, Operations, Legal, Finance and Accounts, Reinsurance, Technology etc. Expenses incurred by Service and Support Groups are indirect in nature.
Operating expenses relating to insurance business are allocated to specific classes of business on the following basis:
• Direct expenses pertaining to Business Group that are directly identifiable to a product segment are allocated on actuals and other direct expenses are apportioned in proportion to the net written premium of the product within the Business Group. However, in case of retail business group, the other expenses of its sub group are apportioned based on the net written premium contributed by the respective sub group;
• Expenses pertaining to Service Group are apportioned directly to the product to which it pertains. In case of multiple products, expenses are apportioned in proportion to the net written premium of the multiple products;
• Expenses pertaining to Support Group and any other expenses, which are not directly allocable, are apportioned on the basis of net written premium on a Company level.
(B) Defined benefit plan Gratuity
The Company has a defined gratuity benefit plan payable to every employee on separation from employment. The Company makes the contribution to an approved gratuity fund which is maintained and managed by ICICI Prudential Life Insurance Company Limited.
Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits of the Company is given below:
Accrued Leave
The Company has a scheme for accrual of leave for employees. The leave policy permits the eligible employees to carry forward a portion of the unutilized accrued compensated absences, and utilize it in future service periods or receive cash compensation on separation. In addition, the unutilized accrued leave absences for the previous financial year would be paid annually to the employees, subject to a ceiling. The liability of accrued leave is determined on the basis of Actuarial Valuation carried out at the year end.
Long Term Performance Pay
The Company has schemes for Long Term Performance incentive plan. The plan is a discretionary deferred compensation plan with a vesting period of three years. The Company has determined the liability on the basis of Actuarial valuation.
5.1.12 Remuneration to Managerial and Key Management Persons Qualitative Disclosure
A. I nformation relating to the composition and mandate of the Nomination and Remuneration Committee.
Composition: In terms of provisions of the Act, Listing Regulations and IRDAI CG guidelines, the Board Nomination and Remuneration Committee comprises of four members out of which three (3) are Non-executive, Independent Directors and one is Non-executive Non-Independent Director. The Board Nomination and Remuneration Committee is chaired by Mr. Uday Chitale, Non-executive, Independent Director of the Company. The composition of the Board Nomination and Remuneration Committee is given below -
Mr. Uday Chitale, Chairperson, Non-executive, Independent Director Mrs. Lalita D. Gupte, Non-executive, Independent Director Mr. Ashvin Parekh, Non-executive, Independent Director Mr. Sandeep Batra, Non-executive, Non-Independent Director
Mandate of the Nomination and Remuneration Committee:
(i) To formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.
(ii) To consider and approve employee stock option schemes and to administer and supervise the same.
(iii) Approval of the policy for and quantum of bonus/long term performance pay (LTPP) payable to the employees.
(iv) To identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal, and formulate a criteria for evaluation of every director's performance.
(v) To consider whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors.
(vi) To approve the compensation programme and to ensure that remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company and its goals.
(vii) To ensure that the proposed appointments/ re-appointments of key managerial personnel or directors are in conformity with the Board approved policy.
(viii) To recommend re-constitution of Board Constituted Committees to the Board.
(ix) To devise a policy on diversity of the Board.
(x) To recommend to the Board all remuneration, in whatever form, payable to senior management.
(xi) To carry out any other function, if any, as prescribed in the terms of reference of the Board Nomination and Remuneration Committee and any other terms of reference as may be decided by the Board and/or specified/provided under the Companies Act, 2013 or the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, or by any other regulatory authority.
B. Information relating to the design and structure of remuneration policy and the key features and objective
of remuneration policy.
1. Key features and objectives of remuneration policy
The Company has under the guidance of the Board and the Board Nomination and Remuneration Committee (“BNRC/ Committee"), followed compensation practices intended to drive meritocracy and fairness.
The Company strives to ensure internal and external equity that are consistent with emerging market trends, Its business model and affordability based on business performance sets the overarching boundary conditions. This approach has been incorporated in the Compensation Policy, the key elements of which are given below:
a. Effective governance of compensation:
The BNRC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for Whole-time Directors and the organisational performance norms for bonus based on the financial and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The BNRC assesses organisational performance as well as the individual performance for Whole-time Directors of the Company. Based on its assessment, it makes recommendations to the Board regarding compensation for the Whole-time Directors of the Company and employees, including senior management and key management personnel.
b. Alignment of compensation philosophy with prudent risk taking:
The Company seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels and no guaranteed bonuses. Compensation is sought to be aligned to both financial and non-financial indicators of performance including aspects like risk management and customer service. In addition, the Company has an employee stock option scheme aimed at aligning compensation to long term performance through stock option grants that vest over a period of time to middle and senior management and Whole-time Directors. Compensation to staff in financial and risk control functions is independent of the business areas they oversee and depends on their performance assessment.
2. Whether the Remuneration Committee reviewed the firm's remuneration policy during the past year, and if so, an overview of any changes that were made.
The Company's Remuneration Policy was reviewed by the BNRC and the Board at their meeting held on April 18, 2023. There were no changes made in the Remuneration Policy.
3. Discussion of how the Company ensures that risk and compliance employees are remunerated independently of the businesses they oversee.
The compensation of staff engaged in control functions like risk and compliance depends on their performance, which is based on achievement of the key results of their respective functions. Their goal sheets do not include any business targets.
C. Description of the ways in which current and future risks are taken into account in the remuneration policy
1. Overview of the key risks that the Company takes into account while implementing remuneration measures.
The Board approves the Risk Management Framework of the Company. The business activities of the Company are undertaken within this framework to achieve the financial plan. The Risk Management Framework includes the Company's risk appetite, limits framework and policies and procedures governing various types of risk. KPIs of Whole-time Directors as well as employees, incorporate relevant risk management related aspects. For example, in addition to performance targets in areas such as growth and profits, performance indicators include aspects such as combined ratio and compliance. The BNRC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation related recommendations to the Board.
2. Overview of the nature and type of key measures used to take account of these risks, including risk difficult to measure.
The annual performance targets and performance evaluation incorporate both qualitative and quantitative aspects including combined ratio, reserving and refinement/ improvement of the risk management framework.
3. Discussion of the ways in which these measures affect remuneration.
Every year, the financial plan/targets are formulated in conjunction with a Risk Management Framework with limit structures for various areas of risk/lines of business, within which the Company operates to achieve the financial plan. To ensure effective alignment of compensation with prudent risk taking, the BNRC takes into account adherence to the Risk Management Framework in conjunction with which the financial plan/targets have been formulated. KPIs of Whole-time Directors as well as employees, incorporate relevant risk management related aspects. For example, in addition to performance targets in areas such as growth and profits, performance indicators include aspects such as the combined ratio and reserving and regulatory compliance. The BNRC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation related recommendations to the Board.
4. Discussion of how the nature and type of these measures have changed over the past year and reasons for the changes, as well as the impact of changes on remuneration.
The Company has introduced regulatory compliance as one of the strategic performance indicators in FY 2024 with a focus on maintaining a strong risk regulatory and compliance culture. The BNRC has taken into consideration these performance measure along with other measure while assessing organisational and individual performance and making compensation related recommendations to the Board.
D. Description of the ways in which the Company seeks to link performance during a performance measurement period with levels of remuneration
1. Overview of main performance metrics for the Company, top level business lines and individuals.
The main performance metrics includes business growth, market share, profits, strategic goals for future, risk metrics (such as combined ratio), compliance with regulatory norms, refinement of risk management processes and customer service. The specific metrics and weightages for various metrics vary with the role and level of the individual.
2. Discussion of how amounts of individual remuneration are linked to the Company-wide and individual performance.
The BNRC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation related recommendations to the Board regarding the level of performance bonus for employees and the performance assessment of Whole-time Directors. The performance assessment of individual employees is undertaken based on achievements vis-a-vis their goal sheets, which incorporate the various aspects/ metrics described earlier.
3. Discussion of the measures the Company will in general implement to adjust remuneration in the event that performance metrics are weak, including the Company's criteria for determining ‘weak' performance metrics.
The Company's Compensation Policy outlines the measures which the Company will implement in the event of a reasonable evidence of deterioration in financial performance. In case such an event occurs in the manner outlined in the policy, the BNRC may decide to apply malus/ clawback on none, part or all of the unvested deferred variable compensation.
5.1.13 (A) Share Capital
During the year, the Company has allotted 1,560,192 equity shares (previous year: 233,675 equity shares) under ESOS raising ' 1,647,567 thousand (previous year: ' 200,709 thousand).
During the year ended, the Company has not made any preferential allotment (previous year: ' NIL).
(B) Share Application
At March 31, 2024, the Company has ' 7,016 thousand share application money under ESOS (previous year: ' 5,006 thousand) against which shares are yet to be allotted.
5.1.17 Ratio Analysis:
(A) For ratios at March 31, 2024 refer Annexure 1a and 1b and for March 31, 2023 refer Annexure 2a and 2b
5.1.18 Employee Stock Option Scheme (ESOS)
The Company instituted the ESOS Scheme pursuant to the resolutions passed by our Board and Shareholders on April 26, 2005 and July 22, 2005, respectively. The Company had granted Stock options to employees in compliance with the Securities and Exchange Board of India (Employee stock option scheme and employee stock purchase scheme) guidelines, 1999. Pursuant to the ESOS Scheme, no eligible employee could, in aggregate be granted in a financial year, options greater than 0.1% of the issued equity share capital of the Company and the aggregate of options granted to the eligible employees under the ESOS Scheme was capped at 8.98% of the issued capital of our Company as on the date of such grants. ESOS Scheme was further amended pursuant to the resolutions passed by the Board and Shareholders on June 9, 2017 and July 10, 2017, respectively, to approve the amendment in the ESOS Scheme for, inter alia, aligning it with the Securities and Exchange Board of India (Share Based Employee Benefits and sweat equity) Regulations, 2021. Further, the exercise price was finalized by the Board Nomination and Remuneration Committee in concurrence with the Board based on an independent valuer's report. During the year ended March 31, 2023 and March 31, 2024, the Company has granted options under the ESOS scheme in compliance with Securities and Exchange Board of India (Share Based Employee Benefits and sweat equity) Regulations, 2021 and is set out below.
The estimated fair value is computed on the basis of Black-Scholes option for Grant (2023) and Special ESOP (2023) issued during the year ended March 31, 2024. 2,950,816 options (previous year: 3,385,870) are vested during the year ended March 31, 2024 and ' 1,649,577 thousand (previous year: ' 205,715 thousand) was realised by exercise of options (including share application money pending allotment)
The company follows intrinsic value method and hence there was no charge in the Revenue Accounts and Profit and Loss Account. Had the Company followed the fair value method for valuing its options for the year ended, the charge to the Revenue Accounts and Profit and Loss Account would have been higher by ' 1,118,720 thousand (previous year ' 1,285,601 thousand) and profit after tax would have been lower by ' 841,501 thousand (previous year ' 962,041 thousand). Consequently, the Company's basic and diluted earnings per share would have been ' 37.31 (previous year ' 33.25) and ' 37.08 (previous year ' 33.20) respectively.
The weighted average price of options exercised during the year ended March 31, 2024 is ' 1055.30 (previous year: ' 854.74.)
5.2 Other disclosures
5.2.1 Basis used by the Actuary for determining provision required for IBNR/IBNER
I BNR (including IBNER) liability as of March 31, 2024 for all lines of business has been estimated by the Appointed Actuary in compliance with the guidelines issued by IRDAI from time to time and the applicable provisions of the Guidance Note 21 issued by the Institute of Actuaries of India.
Pursuant to IRDAI regulation of Asset, Liabilities, and Solvency margin of General Insurance Business Regulations 2016 (IRDAI/Reg/7/119/2016 dated April 7, 2016); claim reserves are determined as the aggregate amount of Outstanding Claim Reserve and Incurred but Not Reported (IBNR) claim reserve for 28 stipulated lines of business.
Pursuant to Actuarial Practice Standard (APS) 33 issued by Institute of Actuaries of India (IAI) which is mandatory and effective from December 1, 2017, the peer review of statutory valuation of liabilities for March 31, 2024 has been carried out by an independent actuary
5.2.2 Provision for Free Look period
The provision for Free Look period ' 287 thousand (previous year: ' 189 thousand) is duly certified by the Appointed Actuary.
5.2.3 Contribution to Terrorism Pool
The Company in accordance with the requirements of IRDAI has participated in contributing to the Terrorism Pool. This pool is managed by the General Insurance Corporation of India (‘GIC'). Amounts collected as terrorism premium are ceded at 100% of the terrorism premium collected to the Terrorism Pool, subject to conditions and an overall limit of ' 20,000,000 thousand.
In accordance with the terms of the agreement, GIC retrocedes, to the Company, terrorism premium to the extent of the Company's share in the risk, which is recorded as reinsurance accepted. Such reinsurance accepted is recorded based on intimation / confirmation received from GIC. Accordingly, reinsurance accepted, on account of the terrorism pool has been recorded only up to December 31, 2023 (previous period: December 31, 2022) as per the last confirmation received. The share of investment income for the year ended March 31, 2024 (Previous period: March 31, 2023) includes income accounted on estimate basis for Q4 FY 2023-24 (Previous period Q4 FY 2022-23).
5.2.4 India Nuclear Insurance Pool
In view of the passage of the Civil Liability for Nuclear Damage Act, 2010, GIC Re as Indian Reinsurer initiated the formation of the India Nuclear Insurance Pool (INIP) along with other domestic non-life insurance companies by pooling the capacity to provide insurance covers for nuclear risks. INIP is an unregistered reinsurance arrangement among its members i.e. capacity providers without any legal entity. GIC Re and
II other non-life insurance companies are Founder Members with their collective capacity of ' 15,000,000 thousand. GIC Re is also appointed as the Pool Manager of the INIP. The business underwritten by the INIP will be retroceded to all the Member Companies including GIC Re in proportion of their capacity collated. Out of the total capacity of ' 15,000,000 thousand of the INIP, the capacity provided by the Company is ' 1,000,000 thousand. The Company has recorded its share of the premium retrocession based on statement / information received up to September 30, 2023 (previous period: September 30, 2022) and investment income up to March 31, 2023 (previous period: March 31, 2022). The share of investment income for the year ended March 31, 2024 (Previous period: March 31, 2023) has been recognized on an estimate basis.
5.2.5 Marine Cargo Pool
The Insurance Industry in India under the directive of Ministry of Finance and IRDAI, has pooled their net capacity to form a national marine cargo pool. The Pool, being managed by GIC Re, is for essential commodities from restrictive Territories. The coverage under the pool is on named peril basis and restrictive. The Pool came in effect from June 1, 2022. The Pool capacity is ' 4,850,000 thousand which has been committed
by the Indian Insurance Industry which includes GIC Re, four PSUs and sixteen Private Sector Insurance Companies. The Company has committed a capacity of ' 300,000 thousand per incidence per year (6.18% share of the Pool).
The cessions to the pool would be 100% after the obligatory cession, in accordance with terms of the agreement. GIC retrocedes to the Company, premiums to the extent Company's share in risks which is recorded as reinsurance accepted. As on March 31, 2024, the Company has received statement for year ended March 31, 2023 and recorded the statement from the pool for its share of the premium retrocession.
5.2.6 Interest, Rent and Dividend income
Interest, Dividend & Rent income is net of interest expense of ' NIL (previous year: ' NIL) on account of REPO transactions.
5.2.7 Re-insurance accepted
The results of reinsurance accepted are accounted as per last available statement of accounts / confirmation from reinsurers.
5.2.8 Contribution to Solatium fund
In accordance with the requirements of the IRDAI circular dated March 18, 2003 and based on recommendations made at General Insurance Council meeting held on February 4, 2005 and as per letter no. HO/MTD/Solatium Fund/2010/482 dated July 26, 2010 from The New India Assurance Co. Ltd. (Scheme administrator), the Company has provided 0.1% of the total Motor TP premium of the Company towards solatium fund.
5.2.9 Environment Relief Fund
During the year ended, an amount of ' 7,074 thousand (previous period ' 6,740 thousand) was collected towards Environment Relief Fund for public liability policies and an amount of ' 6,885 thousand (previous period ' 7,311 thousand) has been transferred to “United India Insurance Company Limited, Environment Fund Account" as per Notification of Environment Relief Fund (ERF) scheme under the public liability Insurance Act, 1991 as amended. The balance amount of ' 544 thousand (previous year ' 354 thousand) has been disclosed under the head current liabilities in schedule 13.
5.2.10 Leases
In respect of premises taken on operating lease, the lease agreements are generally mutually renewable / cancelable by the lessor / lessee.
5.2.11 Micro, Small and Medium scale business enterprises:
As per the provisions of the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) the Micro and Small Enterprises have been identified by the Company from the available information. Based on the information available with the Company, the balance due to micro and small enterprises as defined under the MSMED Act, 2006 is as follows:
5.2.12 Segmental reporting
For segment reporting for the year ended as at March 31, 2024 refer Annexure 3(a) and 3(b) for year ended as at March 31,2023.
(b) Premium refundable to beneficiaries/government in the case of Crop/Weather Insurance is considered for transfer to ‘Unclaimed Amount of Policyholders Account' only on final determination of shown insured area and the consequential refund computation is duly confirmed by concerned government agencies.
5.2.18 CSR Expenditure
During the year ended March 31, 2024, the Company has incurred expenditure towards CSR activities which are as below;
(a) Gross amount required to be spent by the Company as per the clause 7.6 of Guidelines for Corporate Governance for Insurers in India, 2016, during the year was ' 365,932 thousand (previous year: ' 342,638 thousand).
5.2.19 Disclosures pursuant to Rule 3(1) of the Companies (Accounts) Rules, 2014:
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity (“Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
The Company has not received any funds from any person or entity, including foreign entity (“Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Company is not a large corporate as per the criteria under the SEBI circular SEBI/HO/ DDHS/-RACPODI/P/CIR/2023/172.
5.2.21 Outstanding Forward Exchange Contracts
As at March 31, 2024 there are ' NIL (previous year: ' NIL) outstanding forward exchange contracts.
5.2.22 Pending Litigations
The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. (Refer Note no. 5.1.1 for details on contingent liabilities)
5.2.23 (A) The Company periodically reviews all its long term contracts to assess for any material foreseeable losses.
Based on such review, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law / accounting standard.
(B) As at March 31, 2024, the Company did not have any outstanding long term derivative contracts (previous year: ' NIL).
5.2.24 Investor Education & Protection Fund.
For the year ended March 31, 2024, the company has transferred ' 1 thousand (previous year: ' 1 thousand) to the Investor Education & Protection Fund.
Dividend paid during the year and the amount of proposed dividend is in accordance with Section 123 of the Act.
5.2.27 During the year ended March 31, 2024, provision for impairment on investments is net of reversal of impairment amounting to ' 514,884 thousand pursuant to sale of the underlying securities / receipt against the securities (previous period: net of reversal of impairment amounting to ' 132,873 thousand).
5.2.28 The Company has initiated steps to progress towards Ind AS convergence. The Company has appointed knowledge partner who is assisting the Company in implementation of Ind AS. The Steering Committee has detailed out phase wise approach for implementation and is in process of onboarding technology partner to assist in Ind AS convergence .
5.2.29 On March 20, 2024 IRDAI has notified eight principle-based consolidated regulations, covering pivotal domains such as safeguarding of policyholders' interests, rural and social sector and motor third party obligations, Bima Sugam-electronic insurance marketplace, insurance products and operation of foreign reinsurance branches, as well as aspects of registration, capital, actuarial, finance, investment and corporate governance (“Regulatory revamp"), replacing 34 earlier regulations that currently govern these domains.
The key regulations impacting the financial statements and its disclosures are effective from 1st April 2024 and will apply to financial statements drawn for periods that end after the said date. While the Regulatory revamp does not impact these financial statements. The company is in the process of studying and making suitable changes in its practices, policies and procedures including financial reporting and governance.
5.2.30 The Company has implemented a framework to identify relevant applications from the overall IT universe as “Books of account" as per the Companies Act 2013. The Company's books of account maintained in the electronic mode comply with the requirements to the Companies Act 2013, read with relevant rules and notifications, except:
- The Company follows a specific procedure for direct database changes in a controlled environment which includes logging of changes into a ticketing approval tool with an integrated approval process. This tool records all the specific details regarding audit trail requirements for capturing timing, the executor and the details of the change. Further, this information was available for the entire fiscal year. In respect of Applications used for maintenance of commission and reinsurance records, the Company has implemented logs at the application level to record audit trail (edit logs) of transactions directly impacting the database from the backend, starting March 15, 2024.
- The Company has discontinued one of the policy and claim administration applications (used for maintenance of policy and claim records of business demerged from Bharti Axa General Insurance Company Limited and forming part of the Company) on October 31, 2023 and all open transactions have been migrated to its other policy and claim administration applications. As at March 31, 2024, access to this specific application and its database is no longer available to the Company to demonstrate the audit trail feature in a live environment.
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