Annual Rep. 2008-09.pmd - The New India Assurance Co. Ltd.

Auditors’ ReportEstbd. 1919To the Members,The New India Assurance Company LimitedAUDITORS’ REPORTefo v³et Fefv[³ee SM³eesjvme kebÀ. efue.The New India Assurance Co. Ltd.We have audited the attached Balance Sheet of The New India Assurance Company Limited (the Company)as at 31 st March, 2009 and the annexed the revenue accounts of Fire, Marine and Miscellaneous InsuranceRevenue Accounts (collectively known as ‘Revenue Accounts’), Profit and Loss Account and Receipts andPayments Account of the Company for the year ended on that date, in which are incorporated (a) Returnsfrom twenty-six Regional Offices, three hundred and eighty eight Divisional Offices and nine Foreign Branchesaudited by other firms of Auditors appointed by the Central Government; (b) Returns from eight foreignagencies audited by local auditors appointed by the Company; and (c) Returns of four unaudited run-offforeign agencies.We report that :These financial statements are the responsibility of the Company’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in India. Those Standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.The Balance Sheet, the Revenue Accounts, the Profit and Loss Account and Receipts and PaymentsAccount, have been drawn up in accordance with the Insurance Act 1938, Insurance Regulatory andDevelopment Authority (‘IRDA’) (Preparations of Financial Statements and Auditor’s Report of InsuranceCompanies) Regulations, 2002 (‘the Regulations’) read with Section 211 of the Companies Act, 1956(‘the Act’).Further to our comments in the aforesaid paragraphs, we report that :1. Attention is invited to Notes to Accounts note number 8(a)(i) & (ii) & 8(b)(i) to (iii)) in Schedule16 B regarding non-compliance of Insurance Regulatory and Development Authority (IRDA)Regulations during the year. However, these non-compliances do not have any impact on theworking results of the Company.2. a. In view non-availability of balance confirmations of some loans and investments (ReferNote number 9, notes to accounts in Schedule 16 B), we are unable to comment on theimpact of adjustments arising out of reconciliation / confirmation of such balances on thefinancial statements.b. The historical/weighted average cost of listed and unlisted equity / equity related instruments/ preference shares, the value of which were impaired on or before 31.03.2000 is notavailable with the Company. As a result, the reversal of impairment losses recognized inProfit and Loss/Revenue account prior to 01.04.2000 has not been accounted for. Theimpact of the same is not ascertainable.(Refer Significant Accounting Policy in schedule 16 under 13 L and M(II)).42