Bajaj Housing Finance Ltd Auditor Reports

To

the Members of

Bajaj Housing Finance Limited

1. Opinion

We have audited the accompanying Financial Statements of Bajaj Housing Finance Limited (hereinafter referred as the Company), which comprise the Balance Sheet as at 31 March2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as the Financial Statements).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements gives the information required by the Companies Act, 2013 (the Act) in the manner so required and give true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,(Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March2025, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors 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 (ICAI) together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion on the Financial Statements.

2. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements for the financial year ended 31 March2025. 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. We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

S.N. Key Audit Matters	How our audit addressed the key audit matters
1 Allowances for expected credit loss (ECL)	Our Audit Approach
As at 31 March2025, the carrying value of loan assets carried at amortised cost, aggregated RS. 99,512.86 crore (net of allowance for expected credit loss RS. 577.86 crore) constituting approximately 97% of the Companys total assets. Significant judgement is used in classifying these loan assets and applying appropriate measurement principles. ECL on such loan assets carried at amortised cost is a critical estimate involving greater level of Management judgement. As part of our risk assessment, we determined that the ECL on such loan assets has a high degree of estimation uncertainty, with a potential range of reasonable outcomes for the standalone financial statements. procedures related to the allowance for ECL included the following, among others:	We have examined the policies approved by the Board of Directors of the Company that articulate the objectives of managing each portfolio and their business models. We have also verified the methodology adopted for computation of ECL (ECL Model) that addresses policies approved by the Board of Directors, procedures and controls for assessing and measuring credit risk on all lending exposures carried at amortised cost. Additionally, we have confirmed that adjustments to the output of the ECL Model are consistent with the documented rationale and basis for such adjustments and that the amount of adjustments have been approved by the Audit Committee of the Board of Directors. Our audit
The elements of estimating ECL which involved increased level of audit focus are the following:
• Qualitative and quantitative factors used in staging the loan assets carried at amortised cost;	Testing the design and operating effectiveness of the following:
	• Completeness and accuracy of the EAD and the classification thereof into stages consistent with the definitions applied in accordance with the i policy approved by the Board of Directors including the appropriateness of the qualitative factors to be applied;
• Basis used for estimating probabilities of default (PD), loss given default (LGD) and exposure at default (EAD) at product level with past trends;
• Judgements used in projecting economic scenarios and probability weights applied to reflect future economic conditions; and
	• Completeness, accuracy and appropriateness of information used in the estimation of the PD and LGD for the different stages depending on the nature of the portfolio;
• Adjustments to model driven ECL results to address emerging trends. (Refer note no. 4.3, 9 and 50(c) to the financial statements).
	• Accuracy of the computation of the ECL estimate including reasonableness of the methodology used to determine macro-economic overlays and adjustments to the output of the ECL model; and
	Test of details on a sample basis in respect of the following:
	• Accuracy and completeness of the input data such as period of default and other related information used in estimating the PD;
	• The mathematical accuracy of the ECL computation by using the same input data as used by the Company.
	• Completeness and accuracy of the staging of the loans and the underlying data based on which the ECL estimates have been computed.
	• Evaluating the adequacy of the adjustment after stressing the inputs used in determining the output as per the ECL model to ensure that the adjustment was in conformity with the overlay amount approved by the Audit Committee of the Company
2 Information Technology (IT) Systems and Controls impacting financial controls	Our Audit Approach
The Companys key financial accounting and reporting processes are highly dependent on information systems including automated controls in systems, such that there exists a risk that gaps in the IT control environment could result in the financial accounting and reporting records being misstated.	Key IT audit procedures performed included the following, but not limited to:
	• For testing the IT general controls, application controls and IT dependent manual controls, we involved IT specialists as part of the audit.
	• Obtained a comprehensive understanding of IT applications landscape implemented at the Company. It was followed by process understanding, mapping of applications to the ; same and understanding financial risks posed by ^ people-process and technology.
Amongst its multiple IT systems, we scoped in systems that are key for overall financial reporting.
Appropriate IT general controls and application controls are required to ensure that such IT systems are able to process the data, as required, completely accurately and consistently for reliable financial reporting.
We have identified IT systems and controls as a key audit matter considering the high level of automation, significant number of systems being used by Management and the complexity of the IT architecture and its impact on overall financial reporting process.	• Key IT audit procedures includes testing design and operating effectiveness of key controls operating over user access management (which includes user access provisioning, de-provisioning, access review, password configuration review, segregation of duties and privilege access), change management (which include change release in production environment are compliant to the defined procedures and segregation of environment is ensured), computer operations (which includes testing of key controls pertaining to backup, incident management and data centre security).
	• System interface controls: This included testing that requests for access to systems were appropriately logged, reviewed, and authorised.
	• In addition to the above, the design and operating effectiveness of certain automated controls, that were considered as key internal system controls over financial reporting were tested using various techniques such as inquiry, review of documentation/ record/ reports, observation, and re-performance.

3. Information other than the financial statements and Auditors report thereon

The Companys Management and Board of Directors is responsible for the other information. The other information comprises the information included in the Corporate Governance Report, which we obtained prior to the date of this auditors report and the Directors Report including annexures thereto, Management Discussion & Analysis and Business Responsibility & Sustainability Report collectively referred to as Other Information but does not include the Financial Statements and our auditors report thereon. These reports are expected to be made available to us after the date of our auditors report.

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

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in regard to the information pertaining to Corporate Governance obtained prior to the date of this auditors report.

When we read the other information included in the above reports, which are expected to be made available to us after the date of our auditors report, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.

4. Responsibilities of Management and Those Charged with Governance for the Financial Statements

The financial statements have been approved by the Companys Board of Directors. The Companys 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting

records in accordance with the provisions of the Act 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.

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

Those charged with governance are also responsible for overseeing the Companys financial reporting process.

5. Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are 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 auditors 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.

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

(i) 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.

(ii) Obtain an understanding of internal financial controls 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.

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

(iv) Conclude on the appropriateness of Managements 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 ability of the Company 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.

(v) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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.

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 for the year ended 31 March2025 and are therefore the key audit matters. We describe these matters in our auditors 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.

6. Other Matter

The Financial Statements of the Company for the year ended 31 March2024, were audited by the predecessor joint auditors who expressed an unmodified opinion on those financial statements vide their report dated 24 April 2024.

Our opinion is not modified in respect of this matter.

7. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditors report) Order, 2020 (the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

(ii) As required by section 143(3) of the Act, based on our audit on financial statements 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;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account;

d. In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

e. On the basis of written representations received from the directors as on 31 March2025, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March2025, from being appointed as a director in terms of section 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls with reference to the Financial Statements of the Company and the operating effectiveness of such controls, we request you to refer to our separate Report in Annexure B to this report;

g. 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, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 read with Schedule V to the Act;

h. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) 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 the financial position in its financial statements - Refer Note 41 to the financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 7 to the financial statements;

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

iv. The Management has represented that to the best of its knowledge and belief, no funds 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(s) or entity(ies), including foreign entities (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.;

v. The Management has represented that to the best of its knowledge or belief, other than as disclosed in the note 52 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), 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

vi. 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 clause (iv) and (v) above, contain any material misstatement.

vii. The Company has not declared or paid any dividend during the year and as such the compliance of section 123 of the Act has not been commented upon.

viii. According to the information and explanation given to us and 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 the audit trail feature being tampered with.

Pursuant to the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, which came into effect from 1 April 2024, and in accordance with the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, we report that, based on our audit procedures and the information and explanations provided to us, the Company has duly maintained and preserved the audit trail, as per the applicable statutory requirements for record retention.

Annexure A to the Independent Auditors Report

[Referred to in paragraph [7[i)) under Report on Other Legal and Regulatory Requirements of our report of even date]

According to the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we report that:

(i) a. A) The Company has maintained proper records showing full particulars, including quantitative details

and situation of Property, Plant and Equipment and the relevant details of Right-of-use Assets.

B) The Company has maintained proper records showing full particulars of Intangible Assets.

b. The property, plant and equipment excluding right of use assets have been physically verified by the Management during the year and no material discrepancies were identified on such verification. In our opinion, the frequency of annual physical verification adopted by the Company, is reasonable having regard to the size of the Company and the nature of its assets.

c. The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) as disclosed in the Financial Statements are held in the name of the Company.

d. The Company has not revalued its Property, plant and equipment (including Right of use assets) or Intangible Assets during the year. Accordingly, the provisions stated under paragrapRs. 3(i) (d) of the Order are not applicable to the Company.

e. No proceedings have been initiated or are pending against the Company during the year for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly, the provisions stated under paragrapRs. 3(i) (e) of the Order are not applicable to the Company.

(ii) a. The Company is engaged in lending business. Accordingly, it does not hold any inventory. Accordingly,

the provisions stated under paragrapRs. 3(ii) (a) of the Order is not applicable to the Company.

b. During the year, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks and financial institutions based on the security of current assets. Basis the information and explanation provided to us and basis the records examined by us in the normal course of audit of the Financial Statements and as per note no. 17 of the Financial Statements, we have not come across any major differences between the information submitted in the quarterly returns / statements filed by the Company with such banks or financial institutions when compared with the books of account. However, we have not carried out a specific audit of such statements.

(iii) a. The Company is a Non-Banking Financial Company and its principal business is to give loans.

Accordingly, reporting under clause 3(iii) (a) of the Order is not applicable to the Company.

b. The investments made, guarantees provided, security given and terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are, prima facie, not prejudicial to the interest of the Company.

c. In respect of loans and advances in the nature of loans (together referred to as loan assets), the schedule of repayment of principal and payment of interest has been stipulated. Note 4.3 to the Financial Statements explains the Companys accounting policy relating to impairment of financial assets which include loans assets. In accordance with that policy, loan assets with balances as at 31 March2025, aggregating RS. 287 crore were categorised as credit impaired (Stage 3) and

RS. 320.65 crore were categorised as those where the credit risk has increased significantly since initial recognition (Stage 2). Disclosures in respect of such loans have been provided in note 9 to the Financial Statements. Additionally, out of loans and advances in the nature of loans with balances as at the year end aggregating RS. 99,483.07 crore, where credit risk has not significantly increased since initial recognition (categorised as Stage 1), In all other cases, the repayment of principal and interest is regular. Having regard to the nature of the Companys business and the volume of information involved, it is not practicable to provide an itemised list of loan assets where delinquencies in the repayment of principal and interest have been identified.

d. I n respect of loans granted and advances in the nature of loans provided by the Company, there is no overdue amount for more than ninety days as at the Balance Sheet date except for 3,170 loan aggregating RS. 287 crore as on 31 March2025. Further, basis discussions with the Management we understand that the reasonable steps have been taken by the Company for recovery of the principal and interest.

e. The Company is a Non-Banking Financial Company (Housing Finance Company) and its principal business is to give loans. Accordingly, reporting under clause 3 (iii) (e) of the Order is not applicable to the Company

f. The Company has not granted any loans or advances in the nature of loans that were either repayable on demand or without specifying any terms or period of repayment.

(iv) There are no loans, investments, guarantees, and securities given in respect of which provisions of sections 185 and 186 of the Companies Act 2013 are applicable, and hence not commented upon.

(v) The Company being a non-banking financial company (Housing Finance Company) registered with the National Housing Bank (NHB), the provisions of the sections 73 to 76 and any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended), are not applicable to the Company. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this respect.

(vi) The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Companies Act, 2013 for the business activities carried out by the Company. Accordingly, the provisions stated under paragrapRs. 3(vi) of the Order are not applicable to the Company.

(vii) In respect of Statutory dues:

a. The Company has generally been regular in depositing undisputed statutory dues, including goods and service tax, provident fund, employees state insurance, income tax, cess and other material statutory dues applicable to it, with the appropriate authorities. As explained to us, the Company did not have any dues on account of sales tax, service tax, duty of customs, duty of excise and value added tax.

There were no undisputed amounts payable in respect of goods and services tax, provident fund, employees state insurance, income tax, cess and any other material statutory dues in arrears as of 31 March2025, for a period of more than six months from the date they became payable.

b. According to the information and explanation given to us and examination of records of the Company, details of statutory dues referred to in sub-clause (a) above which have not been deposited as on

31 March2025, on account of any dispute, are as follows:

Name of the Statute	Nature of the dues	Disputed Amount (K in crore)	Period to which the amount relates	Forum where dispute is pending
Goods and Service Tax Act, 2017	Demand on credit notes	0.34	FY 2020-2021	Office of Joint Commissioner (Appeals), Maharashtra

(viii) There are no transactions which are not accounted in the books of account which have been surrendered or disclosed as income during the year in Income-tax Assessment of the Company. Also, there are no previously unrecorded income which has been now recorded in the books of account. Accordingly, the provision stated under clause 3(viii) of the Order is not applicable to the Company.

(ix) a. The Company has not defaulted in repayment of loans or borrowings or in the payment of interest

thereon to any lender.

b. According to the information and explanations given to us and on the basis of our audit procedures, we report that the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

c. Money raised by way of term loans, were applied for the purposes for which they were raised other than temporary deployment pending application of proceeds in the normal course of business.

d. On the basis of the procedures performed by us and on an overall examination of the financial statements of the Company, we report that no funds raised on short term basis have prima facie been used for long-term purposes by the Company.

e. The Company does not have any subsidiary, associate or joint venture. Accordingly, reporting under paragrapRs. 3(ix)(e) of the Order is not applicable to the Company.

f. The Company does not have any subsidiary, associate or joint venture. Accordingly, reporting under paragrapRs. 3(ix) (f) of the Order is not applicable to the Company.

(x) a. Money raised by way of Initial Public Offer through equity shares during the year, have been, applied

by the Company for the purposes for which they were raised. During the year, the Company has not raised money by way of Initial Public Offer through debt instruments / further public offer (including debt instruments).

b. During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) and hence provisions stated under paragrapRs. 3(x) (b) of the Order are not applicable to the Company.

(xi) a. To the best of our knowledge and according to the information and explanations given to us, no fraud

by the Company or no fraud on the Company has been noticed or reported during the period covered by our audit.

b. During the year, no report under sub-section (12) of section 143 of the Act has been filed by us in Form ADT - 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. According to the information, explanations and representations given to us, the predecessor joint statutory auditors or the secretarial auditor has not filed any report under subsection (12) of section 143 of the Act in Form ADT-4. Further, as represented to us, the Company does not have a cost auditor and hence, the reporting requirement in terms of cost auditor does not get applicable here.

c. We have taken into consideration the whistle blower complaints received by the Company during the year and provided to us, while determining the nature, timing and extent of our audit procedures.

(xii) The Company is not a Nidhi Company and hence provisions as stated under paragrapRs. 3 (xii) (a) to (c) of the Order are not applicable to the Company.

(xiii) Transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the note no. 43 to the financial statements, as required by the applicable accounting standards.

(xiv) a. The Company has an internal audit system commensurate with the size and the nature of its business.

b. We have considered internal audit reports issued by internal auditor during our audit in accordance with the guidance provided in SA 610 - Using the work of Internal Auditors.

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with them as referred to in section 192 of the Act and accordingly provisions stated under paragrapRs. 3(xv) of the Order are not applicable to the Company.

(xvi) a. As the Company is a Non-Banking Financial Company (Housing Finance Company) and registered

under National Housing Bank (NHB) Act, 1987, it has been exempted from the requirement of Registration under section 45-IA of Reserve Bank of India Act, 1934. Accordingly, provisions stated under clause 3(xvi) (a) of the Order are not applicable to the Company.

b. The Company has conducted housing finance activities with a valid Certificate of Registration issued by National Housing Bank.

c. The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and accordingly provisions stated under paragrapRs. 3 (xvi) (c) of the Order are not applicable to the Company.

d. The group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) has more than one Core Investment Companies (CICs) as a part of its group. The Group has 18 CICs.

(xvii) Based on the overall review of the financial statements of the Company, the Company has not incurred cash losses during the current financial year as well as in the immediately preceding financial year.

(xviii) There has been no resignation of the Statutory Auditors of the Company during the year and accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the Company.

(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, undrawn credit lines, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of Balance Sheet as and when they fall due within a period of one year from the Balance Sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the Balance Sheet date, will get discharged by the Company as and when they fall due.

(xx) In respect of Corporate Social Responsibility (CSR):

a. The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there is no unspent CSR amount on account of other than ongoing projects for the year which requires a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provision of sub-section (6) of section 135 of the said Act.

b. There are no unspent amounts under sub section (5) of section 135 of the Act, in respect of ongoing projects, that are required to be transferred to a special account in compliance of provision of sub section (6) of section 135 of Companies Act.

(xxi) Based on our examination of the financial statements of the Company, the Company does not have any subsidiary / associate / joint venture and hence the paragrapRs. 3(xxi) of the Order is not applicable to the Company.

Annexure B to the Independent Auditors Report

[Referred to in paragraph (7(ii)(f)) under Report on Other Legal and Regulatory Requirements of our report of even date]

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the internal financial controls with reference to the Financial Statements [the internal financial controls over financial reporting) of Bajaj Housing Finance Limited [the Company) as of 31 March2025, in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal financial controls with reference to the Financial Statements based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting [the Guidance Note) issued by the Institute of Chartered Accountants of India [ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting [the Guidance Note) and the Standards on Auditing as specified under Section 143[10) of the Act, to the extent applicable to an audit of internal financial controls with reference to the Financial Statements and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to these financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to these financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to these financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls with reference to these financial statements.

Meaning of Internal Financial Controls with reference to these Financial Statements

A Companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control with reference to financial statements includes those policies and procedures that:

[1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 31 March2025, based on the internal financial control with reference to the Financial Statements criteria established by the Company considering the essential components stated in the Guidance Note on Audit of Internal Financial Control Over Financial Reporting issued by the ICAI.