(1)The financial statements of the Corporation shall give a true and fair view of the state of affairs of the Corporation and shall be in conformity with the standards on auditing issued by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949, and with the accounting standards issued by the said Institute to the extent such accounting standards are applicable to insurers carrying on life insurance business and subject to any regulations made by the Authority under the Insurance Act relating to preparation of financial statements and auditor’s report:Provided that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the Corporation, merely by reason of the fact that they do not disclose any matters which are not required to be disclosed by this Act or by the Insurance Act or by the Insurance Regulatory and Development Authority Act, 1999 or by any other law for the time being in force.(2)At every annual general meeting, the Board shall place before such meeting financial statements for the preceding financial year.(3)The Corporation shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the Corporation and of all its subsidiaries and associate companies in conformity with the auditing standards referred to in sub-section (1) and the accounting standards applicable by law, and shall place the same before the annual general meeting, along with the placing of its financial statements under sub-section (2): Provided that the Corporation shall also attach along with its financial statements, a separate statement containing the salient features of the consolidated financial statement in respect of its subsidiaries and associate companies.(4)The provisions of this Act applicable to financial statements under sub-section (1) and under section 24C, the inquiry by the auditor into matters referred to in and making of the auditor’s report on accounts under section 25B, and adoption of financial statements under section 23A at the annual general meeting, shall, mutatis mutandis, apply to the consolidated financial statement referred to in sub-section (3).(5)Without prejudice to anything contained in subsection (1) or sub-section (3), where the financial statements are not in conformity with the standards referred to therein, the Corporation shall disclose in the financial statements the deviation from such standards, the reasons therefor and the financial effects, if any, arising out of such deviation.(6)Financial statements including consolidated financial statement, if any, shall be approved by the Board before they are signed on behalf of the Board by the Chairperson, a Managing Director, one director other than a whole-time director, the heads of the finance and secretarial functions of the Corporation and its Appointed Actuary, for submission to the auditor for his report thereon.(7)The auditor’s report shall be attached to every financial statement.(8)A signed copy of every financial statement, including consolidated financial statement, if any, shall be issued, circulated or published, along with a copy each of—(a)any notes annexed to or forming part of such financial statement;(b)the auditor’s report; and(c)the Board’s report referred to in sub-section (1) of section 24C.
