Indian passport with US visa lost . Not reported to US embassy

[H1b_Qs]

Hi ,

I came to us on H1b and during first H1b , I lost my indian Passport with valid US visa in US. Since I need not travel  outside US, I never reported it to US embassy and later using the photocopies . I had my second H1b approved with extension  of status. Now I need to go back to US on H4. In the DS 160 there is question about "Have I ever lost US visa". I am not sure what should I answer . I am afraid this my affect my visa application. Please suggest.

Thanks,