Auditor Report of Canara HSBC Life Insurance Company Ltd.

Mar 31, 2026

1. We have audited the Financial Statements of Canara
HSBC Life Insurance Company Limited (“the
Company”), which comprise the Balance Sheet as at
March 31, 2026, the related Revenue Account (also
called the “Policyholders'' Account" or “Technical
Account”), the Profit and Loss Account (also called the
“Shareholders’ Account” or “Non-Technical Account”)
and the Receipts and Payments Account (also called
“Cash Flow Statement”) for the year ended on that date
and Notes to Accounts including summary of Significant
Accounting Policies and other explanatory information
(hereinafter referred to as “the financial statements”).

2. In our opinion and to the best of our information and
according to the explanations given to us the aforesaid
financial statements are prepared in accordance with the
requirements of the Insurance Act, 1938, as amended by
Insurance Laws (Amendment) Act, 2015 and Insurance
(Amendment) Act, 2021 (the “Insurance Act”), read
with Insurance Regulatory and Development Authority
Act, 1999 (the “IRDA Act”), Insurance Regulatory
and Development Authority (Actuarial, Finance
and Investment Functions of Insurers) Regulations,
2024 (“the Regulations”), orders/directions, circulars,
guidelines issued by the Insurance Regulatory and
Development Authority of India (IRDAI) in this regard and
in accordance with the accounting principles generally
accepted in India, including the Accounting Standards
specified under Section 133 of the Companies Act, 2013
(“the Act”) read with Rule 7 of the Companies (Accounts)
Rules, 2014 and Companies (Accounting Standards)
Amendment Rules, 2021 to the extent applicable and
in the manner so required, and give a true and fair view
in conformity with the generally accepted accounting

principles in India and the practices prevailing with in
the Insurance Industry in India:

i. In the case of the Balance Sheet, of the state of
affairs of the Company as at March 31,2026;

ii. In the case of the Revenue Account, of the surplus
for the year ended March 31,2026;

iii. In the case of the Profit and Loss Account, of the
profit for the year ended March 31,2026; and

iv. In the case of the Receipts and Payments Account,
of the receipts and payments for the year ended
March 31,2026.

Basis for Opinion

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

Key Audit Matters

4. Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our
audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined
the matters described below to be the key audit matters
to be communicated in our report:

S. No	Key Audit Matter	How the matter was addressed in our audit
1	Valuation of Investments: (AUM: March 31, 2026 - '' 46,11,815 Lakhs; March 31, 2025 - '' 41,16,641 Lakhs) Investments are made and valued in accordance with the provisions of the Insurance Act, 1938, Insurance Regulatory and Development Authority (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (“the Regulations”), Investment Policy of the Company and relevant Indian Generally Accepted Accounting Principles. The valuation methods used to value investments use multiple observable market inputs, including interest rates, equity prices, indices, etc. Considering the materiality of such investments, we have considered investments as having significant impact on overall risk levels, controls and related audit procedures designed by us. Valuation of investments was considered as one of the areas of most significance to overall audit strategy.	Our Audit Procedures included the following: a. We have reviewed the compliances framework in place for compliance with requirements of IRDAI and Investment Policy with regard to investments. b. We have assessed the design and operating effectiveness of internal controls around the investment function. This includes aspects relating to governance, monitoring, regulation, procurement / disposal, valuation, accounting and disclosure of investments. c. We have conducted independent reconciliation of quantum of holdings of investments with the holdings confirmed by Custodians / third parties. d. We have reviewed the methodologies followed by the Company w.r.t valuation of investments and have validated the pricing sources.
2	Information Technology (IT): The Company’s financial accounting and reporting systems are highly dependent on the effective working of the operating and accounting system/s due to extensive volumes, variety and complexity of transactions. The company has separate software applications for management of its various activities. Transfer of data from / to these software’s is critical for accurate compilation of financial information. We have identified IT systems and controls as key audit matter because of significant use of IT system and the scale and complexity of the IT architecture. Our audit outcome is dependent on the effective functioning of such operating and accounting system	We have carried out the following procedures to verify the effectiveness of IT controls: • We have obtained an understanding of the Company’s IT environment and key changes if any during the audit period that may be relevant to the audit. • Our audit procedures included testing and reviewing the design and operating effectiveness of the key automated and manual business cycle controls and logic for system generated reports relevant to the audit by verifying the reports and other financial and non-financial information generated from the system on a test check basis. • We have reviewed the reconciliations between the core operating systems and the accounting software to mitigate the risk of incorrect data flow to/from separate application software. • We have also obtained management representations wherever considered necessary.

Other Information

5. The Company’s Board of Directors is responsible for
the other information. The other information obtained at
the date of this auditors’ report is management report
but does not include the financial statements and our
auditors’ report thereon.

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

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

8. When we read the Other Information, if we conclude
that there is a material misstatement therein, we are
required to communicate the matters to those charged
with governance.

Management’s Responsibility for the Financial
Statements

9. The Company’s Board of Directors is responsible for
the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements
that give a true and fair view of the financial position,
financial performance, and cash flows of the Company
in accordance with the Regulations, the provisions of
Insurance Act, the IRDA Act, various circulars/guidelines
issued by IRDAI and the accounting principles generally
accepted in India, including the accounting standards

specified under Section 133 of the Act read with Rule 7 of
the Companies (Accounts) Rules, 2014 further amended
by Companies (Accounting Standards) Amendment
Rules, 2021 to the extent applicable and in the manner so
required. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the applicable laws for safeguarding of the
assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.

10. In preparing the financial statements, the Board of Directors
is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.

11. The Board of Directors are also responsible for
overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the
Financial Statements

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

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

• Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the
Company has adequate internal financial controls
system in place and the operating effectiveness of
such controls.

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

• Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors’
report to the related disclosures in the financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of
our auditors’ report. However, future events or
conditions may cause the Company to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures as required under the regulations, the
provisions of Insurance Act, the IRDA Act, various
circulars/guidelines issued by IRDAI and accounting
standards referred to under the Act, and whether
the financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.

Materiality is the magnitude of misstatements in the
financial statements that, individually or in aggregate,
makes it probable that the economic decisions of
a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the

scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.

14. We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.

15. We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

16. From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not
be communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of
such communication.

Other Matters

17. The actuarial valuation of liabilities for life policies in
force is the responsibility of the Company’s Appointed
Actuary (the Appointed Actuary). The actuarial valuation
of these liabilities as at March 31, 2026 for policies in
force and policies in respect of which premium has
been discontinued but liability exists as at that date
has been duly certified by the Appointed Actuary. The
Appointed Actuary has certified to the Company that
the assumptions for such valuations are in accordance
with the guidelines and norms issued by the Insurance
Regulatory and Development Authority of India (IRDAI)
and the Institute of Actuaries of India in concurrence
with the IRDAI. Accordingly, we have relied upon the
Appointed Actuary’s certificate in this regard for forming
and our opinion in so far as it relates to the actuarial
valuation is based solely on the certificate of the
Appointed Actuary (Refer Note No. 7 of Schedule 16 (B)
Significant Accounting Policies and Note 2 of Schedule
16 (C) Notes to Accounts).

18. We draw attention to schedule 16 (A) to the financial
statements which states that consequent to dilution
of shareholding of Canara Bank and Punjab National
Bank pursuant to the Offer for Sale, the Company is no
longer covered under Section 139(5) of the Companies
Act, 2013. Consequently, directions & sub-directions
issued by the Comptroller and Auditor-General of India
under Section 143(5) of the Act are not applicable to
the Company for the current year and, accordingly, no
separate report is being issued in respect of matters
arising from such directions.

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

Report on Other Legal and Regulatory
Requirements

19. We have issued a separate Certificate, as required,
certifying the matters specified in paragraph 3 and 4
of Part III of Schedule II of Chapter III of the Insurance
Regulatory and Development Authority (Actuarial,
Finance and Investment Functions of Insurers)
Regulations, 2024 (“the Regulations”).

20. Further to our comments in the certificate referred to in
para 19 above, and, as required by the IRDA Act, the
regulations issued under Section 114A of the Insurance
Act and read with section 143 (3) of “the Act” we
report that:

a) We have sought and obtained all the information and
explanations which to the best of our knowledge
and belief were necessary for the purpose of our
audit and have found them to be satisfactory;

b) In our opinion, and to the best of our information and
according to the explanations given to us, proper
books of account as required by law have been
maintained by the Company so far as it appears
from our examination of those books;

c) The Company’s financial accounting system is
centralized, accounting returns are not required to
be submitted by the branches and other offices of
the Company for the purposes of our audit;

d) The Balance Sheet, the Revenue Account, the Profit
and Loss Account and the Receipts and Payments
Account dealt in this Report are in agreement with
the books of account;

e) The actuarial valuation of liabilities as at March 31,
2026 for policies in force and policies in respect of
which premium has been discontinued but liability
exists as at that date has been duly certified by
the Appointed Actuary. The Appointed Actuary

has certified to the Company that the assumptions
for such valuations are in accordance with the
guidelines and norms issued by the Insurance
Regulatory and Development Authority of India
(IRDAI) and the Institute of Actuaries of India in
concurrence with the IRDAI.

f) In our opinion and to the best of our information
and according to the explanations given to us, the
Balance Sheet, the Revenue Account, the Profit
and Loss Account and the Receipts and Payments
Account dealt with by this report comply with the
Accounting Standards referred to in Section 133
of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014 as amended and
Companies (Accounting Standards) Amendment
Rules, 2021) to the extent they are not inconsistent
with the accounting principles prescribed in the
Regulations and orders/directions issued by IRDAI
in this regard; and

g) On the basis of written representations received
from directors as on March 31, 2026 and taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31,2026, from
being appointed as a director in terms of section
164 (2) of the Act.

h) The Investments of the Company have been
valued in accordance with the provisions of
the Insurance Act, Insurance Regulatory and
Development Authority (Actuarial, Finance and
Investment Functions of Insurers) Regulations,
2024 (“the Regulations”), the Investment policy
of the company and Master Circular on Actuarial,
Finance and Investment Functions of Insurers
issued by IRDAI, May 2024.

i) In our opinion and to the best of our information
and according to the explanations given to us,
the accounting policies selected by the Company
are appropriate and are in compliance with the
Accounting Standards referred under the section
133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014 as amended and
Companies (Accounting Standards) Amendment
Rules, 2021), to the extent they are not inconsistent
with the accounting principles prescribed in the
provisions of Insurance Act, the IRDA Act, the
regulations, various circulars/guidelines issued by
IRDAI and amendments to these Acts, Regulations
and Standards, from time to time;

j) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to
our separate Report in “Annexure 1”.

k) With respect to the other matters to be included
in the Auditors’ Report in accordance with the
requirements of section 197(16) of the Act,
as amended:

• In our opinion and to the best of our information
and according to the explanations given to us,
pursuant to Section 34A of the Insurance Act,
1938, the provisions of Section 197 of the Act
are not applicable for the remuneration paid to
the Managing Director of the Company.

• The Company has paid sitting fees to the
independent directors which is in accordance
with the provisions for section 197(5) of the
Act. The Company has not paid any other
remuneration to non-executive directors and
independent directors.

l) With respect to other matters to be included in the
Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditor’s) Rules, 2014,
as amended in our opinion and to the best of our
information and according to the explanations
given to us:

i. The Company has disclosed the impact of
pending litigations on its financial position in
its financial statements (Refer Note 1 and Note
42 of the Schedule 16 (C) Notes to Accounts);

ii. The Company is in the life insurance business
where in long term contracts are entered
into with the policyholders and the liability
estimated by the Appointed Actuary for the
same has been provided for by the Company
(Refer Para 17 above).

iii. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.

iv. (a) the Management has represented that,

to the best of its knowledge and belief,
no funds (which are material either
individually or in the aggregate) have
been advanced or loaned or invested
(either from borrowed funds or share

premium or any other sources or kind of
funds) by the company 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, whether,
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;

(b) the Management has represented, that,
to the best of its knowledge and belief,
no funds (which are material either
individually or in the aggregate) have
been received by the company from
any person or entity, including foreign
entities (“Funding Parties”), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, 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; and

(c) Based on audit procedures that have been
considered reasonable and appropriate
in the circumstances, nothing has come
to our notice that has caused us to
believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain
any material mis-statement.

v. a. The final dividend proposed in the

previous year, declared and paid by the
Company during the year is in accordance
with the Section 123 of the Act.

b. The Board of Directors of the Company
have proposed final dividend for the
year which is subject to the approval
of the members at the ensuing Annual
General Meeting. The amount of dividend
proposed is in accordance with section
123 of the Act, as applicable.

vi. Based on our examination which included test
checks, the Company has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software. Further, during the
course of our audit we did not come across any
instance of audit trail feature being tampered
with. Furthermore, the audit trail has been
preserved by the Company in accordance with
statutory requirements for record retention.

m) The Company being Insurance Company, the
requirements of the Companies (Auditors’ Report)
Order, 2020 issued by the Central Government of
India in terms of Section 143(11) of the Companies
Act, 2013, are not applicable to the Company. Our
report therefore does not comment on this aspect.

n) In terms of reporting under Point 11 (d) of Annexure
INV-I to Insurance Regulatory and Development
Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024, relating to
applicable NAV or applications received on the last
business day of the quarters, we confirm, that the
company has complied with Point No. 5 of the said
Annexure INV-I.

For Brahmayya & Co. For Raj Har Gopal & Co.

Chartered Accountants Chartered Accountants

(Registration No. 000513S) (Registration No. 002074N)

(CA. C V Ramana Rao) (CA. Gopal Krishan)

Partner Partner

Membership Number: 018545 Membership Number: 081085

Place: New Delhi Place: New Delhi

Date: 28.04.2026 Date: 28.04.2026

UDIN: 26018545IBSNGB7136 UDIN: 26081085FHUMNH2838