Can Fin Homes Ltd Auditor Reports

To

The Members of Can Fin Homes Limited

Report on Audit of the Financial Statements Opinion:

We have audited the accompanying Ind AS Financial Statements of Can Fin Homes Limited ("the Company") which comprise Balance Sheet as at March 31, 2025, the Statement of Profit & Loss (Including Other comprehensive Income),

Statement of Changes in Equity and the Statement of Cash

Flows for the year then ended, notes to Ind AS financial statements including a summary of material accounting policies and other explanatory information (hereinafter referred to as the ‘Ind AS financial statements).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid

Ind AS financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a 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 March 31, 2025, its Profits including Other Comprehensive loss, Changes in Equity and its Cash Flows for the year ended on that date.

Basis of Opinion:

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 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 together with the ethical requirements that are relevant to our audit of the

Ind AS 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 to provide a basis for our opinion.

Key Audit Matters:

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements for the period ended March 31, 2025. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

Sr. No. Key audit matters	How our audit addressed the key audit matter
1. Expected Credit Loss – Impairment of carrying value of loans and advances:	Our Audit Approach:
	Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
IND AS 109 requires the Company to provide for impairment of its Loans and Advances using the Expected Credit Losses ("ECL") approach.	A. Obtained an understanding for estimating the probability of default on loans receivable through Markov chain model by:
This Approach involves an estimation of probability of	Analysis of Loan portfolio
weighted loss on Financial Instruments over their life, considering reasonable and supportable information about past events, current conditions, and forecasts of future economic conditions which could impact the credit	The loan portfolio for the past several months are analysed with the transition matrix prepared by the management from 30th April 2017 moving through 6 stages Standard, SMA-0, SMA-1, SMA-2, NPA and
quality of the Companys loans and advances. As at March 31, 2025, the carrying value of loan assets measured at amortized cost, aggregated to RS38,21,716.29	> 120 days. based on this, the default probability arrived is verified by multiplying the monthly matrix by the appropriate number of times that represent the maturity period of the loan.
	Value of Collateral property
lakhs and ECL provision amounting to RS35,758.46 Lakhs The major elements of estimating ECL are the following: a) Application of ECL model requires several data	The property value for those loans which are over 90 days past due are verified whether the current market value is updated or not and further a haircut of 25% is done on the value of property.
inputs.	Loss Given Default
b) Judgmental models used to estimate ECL which	<90 days:
involves determining Probability of Default ("PD"), Loss Given Default ("LGD"), and Exposures at Default ("EAD"). The PD and the LGD are the key drivers of estimation complexity in the ECL and as a result are	Recovery Rate (RR) calculated by dividing value of collateral of each loan, which is arrived by the transition matrix through analysis of loan mentioned above arrived with EAD then LGD is calculated by (1- RR%) and a minimum threshold is checked for 10% as company policy.
considered the most significant judgmental aspect of	>90 days:
the Companys modelling approach. c) Qualitative and quantitative factors used in staging of	Difference between the total loan value > 90 days and value of collateral of each loan is considered as LGD.
loan assets.	Verification of other factors:
d) Ind AS 109 requires the Company to measure ECL on an unbiased forward-looking basis, reflecting a range of future economic conditions. Significant	Considering macro-economic factors such as GDP growth rate, Inflation and 1 year risk free rate. Probability of LGD is verified. ECL is verified by Loan amount * LGD at each stage to arrive at total ECL
management judgement is applied in determining the economic scenarios used and the probability weights applied to them.	f The total ECL arrived at the above methodology is then compared with the provision to be recognised as per IRAC norms and observed that ECL arrived is higher than IRAC Norms
	Testing the design and effectiveness of internal controls over the following:
	• Key controls over the completeness and accuracy of the key inputs, data and assumptions into the Ind AS 109 impairment models.
	• Key controls over the application of the staging criteria consistent with the definitions applied in accordance with the policy approved by the Board of Directors including the appropriateness of the qualitative factors.
	B. Discussed with the management, the approach, interpretation, systems and controls implemented in relation to probability of default and stage-wise bifurcation of product-wise portfolios for timely ascertainment of stress and early warning signals.
	C. Read and assessed financial the disclosures included the statements in respect of expected credit losses with the requirements of Ind AS 107 Financial Instruments: Disclosure ("Ind AS 107") and Ind AS 109.

 

2. Information Technology (IT) Systems and Controls:	Our Audit Approach:
The Company uses ERP system for financial reporting which interface with other business operation softwares that process transactions related to loans, deposits and borrowings.	We have obtained an understanding of the Companys IT applications, databases and operating systems relevant to financial reporting and the control environment. For these elements of the IT infrastructure, the areas of our focus included access security (including controls over
The Companys key financial accounting and reporting processes are highly dependent on the automated controls implemented in IT systems. If there exist gaps in the IT control environment, then it	privileged access), program change controls and segregation of duties. In particular, we have tested the design, implementation and operating effectiveness of the Companys general IT controls over the key IT systems relevant to financial reporting such as audit trail.
could result in the financial accounting and reporting records being materially misstated. Therefore, due to the complexity of the IT environment, the assessment of the general IT controls and the application controls specific to the accounting and preparation of the financial information is considered to be a key audit matter.	In addition to IT controls, the company maintains certain controls involving manual intervention, such as the preparation of financial statements, Asset Liability Management (ALM) reports, Demand Drafts (DDs) for loans issued, which are cleared manually instead of electronically and many others. Accordingly, we performed a test check of the effectiveness of these controls and found them to be effective for the sample selected.

Other Information:

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Report of Directors including Annexures to Directors Report, Corporate Governance, Information to Shareholders and Management Discussion and Analysis but does not include the financial statements and our auditors report thereon, which are expected to be made available to us after the date of this 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.

When we read the reports which we are expected to be made available to us after the date of this auditors report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. In case of uncorrected material misstatements, we are required to communicate to other stakeholders as appropriate as well as to take action under the applicable laws and regulations, if any.

Managements Responsibility for Ind AS Financial Statements:

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 Ind AS financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the

Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 implementation and maintenance of 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 the accounting records, relevant to the preparation and presentation of the financial statement 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 Board of Directors are also responsible for overseeing the Companys financial reporting process.

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 SAs, we exercise professional judgement and maintain professional scepticism through 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 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.

• 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.

Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, make 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.

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 financial year ended 31^st March 2025 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

Other Matters

We have relied on the Branch Audit Report issued by the Statutory Branch Auditors of 179 branches included in the Financial Statements of the company whose financial statements / financial information reflect total advances of

RS1966351 Lakhs as at March 31, 2025 and total revenue of RS188356 Lakhs for the year ended on that date, as considered in the Financial Statements. These branches and processing centres cover of 51.45% of advances, 50.64% of deposits, 57.78% non-performing assets and 48.56% revenue. The financial statements / information of these branches has been audited by the Statutory Branch Auditors whose reports have been furnished to us and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the reports of such

Branch auditors. Further, in conduct of our audit, we have made a note of unaudited returns in respect of the branches and zonal offices, account for Nil advances and 1.70% of total deposits. Further to this, the financial information mentioned for the year ended 31^st March 2024 was audited by the previous auditors and the amounts of the previous periods have been regrouped/reclassified wherever necessary to confirm with the current periods classification. Our opinion is not modified with respect of above matters.

Report on Other Legal and Regulatory Requirements:

1. 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, we give in the Annexure - A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by 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 purposes 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 reports on the audit of accounts of 219 branches, (179 branches) by statutory branch auditors and (40 branches) by us as appointed by the Company in accordance with the guidelines prescribed by the Board of Directors have been considered by us in terms of Section 143(8) of the

Act and have been dealt in the manner considered appropriate, while preparing this report. d. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash dealt with by this Report are in agreement flows with the books of account. e. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with

Companies (Indian Accounting Standards) rules,

2015, as amended from time to time. f. On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on that date from being appointed as a Director in terms of Section

164 (2) of the Act. g. 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 - B". h. With respect to the other matters to be included in the Auditors Report in accordance with requirement of Section 197 (16) of the Act, as amended: In our opinion and according to the information and explanation given to us, the remuneration paid during the current year by the Company is in accordance with the provisions of Section 197 of the Act. i. 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, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed its pending litigations in Note 36 of the IND AS financial statements which would impact its financial position. ii. The Company did not have any long-term contracts as required under the applicable law or accounting standards, and also not entered into any derivative contracts, accordingly no provision is required to be made in respect of material foreseeable losses. iii. There has been no delay in transferring amounts, required to be transferred, to the

Investor Education and Protection Fund by the Company except for those reported in Note

16.1 of the financial statements. 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 entity ("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.

C. Based on the 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 misstatement v. 1. The final dividend paid by the Company during the year declared which was proposed in the previous year is in accordance with Section 123 of the Act.

2. The interim dividends declared by the Board of Directors and paid by the Company during the year are in accordance with Section 123 of the Act.

3. As per Note 20.2 and 20.3 of the financial statements, the Board of Directors has proposed a final dividend which is subject to approval by the members of the Company in 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 and representation received from the Company, which included test checks, the Company has used an accounting software for maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for the 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.

As per proviso to Rule 3(1) of the Companies

(Accounts) Rules, 2014 & reporting under Rule

11(g) of the Companies (Audit and Auditors)

Rules, 2014, Based on our examination and representation received from the Company, which included test checks, the Company has preserved the audit trail as per the statutory requirements.

ForRao & Emmar	ForV.K. Ladha & Associates
Chartered Accountants	Chartered Accountants
Firm Registration No. 003084S	Firm Registration No. 002301C
Sd/-	Sd/-
B J Praveen	CA Rakesh Kumar
Partner	Partner
Membership No. 215713	Membership No. 546723
UDIN: 25215713BMJHGT4277	UDIN: 25546723BMIOFK5616
Place : Bengaluru
Date : April 23, 2025

Annexure-A Referred to in Paragraph 1 under the heading "Report on other legal and Regulatory Requirements" of our Report to the Members of Can Fin Homes Limited.

1. a. i. The Company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment ("PPE"). However, it is in the process of updating details of location / situation / tagging of PPE. ii. Based on the information and explanation furnished to us by the Company, it doesnt have any intangible assets during the year. b. Based on the information and explanation furnished to us by the Company, PPE of the Company located at the 219 Branches, Centralized Processing Centres and the Head Office have been physically verified by the Company and it has represented us that the discrepancies noticed on such verifications is not material and the Company is in the process of adjusting the same in the books of account. In our opinion the frequency of verification of PPE of the

Company is adequate. c. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in its favour) disclosed in the financial statements are held in its name. d. The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets or both during the year and accordingly, provisions of Clause 3(i)(d) of the Order is not applicable. e. According to the information and explanation given to us by the Company, there are no proceedings initiated or are pending against it for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder and accordingly provisions of Clause 3(i) (e) of the Order are not applicable. 2. a. The Company did not hold any Inventories as at the year end and accordingly, Clause 3(ii)(a) of the Order is not applicable. b. The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, during any point of time of the year from banks or financial institutions on the basis of security of current assets. The quarterly returns / statements filed by the Company with such banks or financial institutions were in agreement with its books of account of the Company. 3. a. The Company has not provided loans or provided advances in the nature of loans or stood guarantee or provided security to any other entity other than loans given in the normal course of business of the Company. Accordingly, Clause 3(iii) (a) of the Order is not applicable. b. Based on the information and explanation furnished to us by the Company the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in nature of loans and guarantees provided are not prejudicial to the companys interest. c. Based on the information and explanation furnished to us by the Company, in respect of loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated and the repayments or receipts are regular except in 2760 cases of NPA accounts for the value of RS33326.23 lakhs, having regard to the nature of the Companys business and the voluminous nature of loan transactions involved, it is not practicable to furnish entity-wise list of loan assets where discrepancies in the repayment of principal and interest have been identified. d. Based on the information and explanation furnished to us by the Company, there are overdues for more than ninety days, in respect of loans and advances in the nature of loans including interest thereon, as at 31^st March 2025 is RS27,870.80 Lakhs (2760 cases). Reasonable steps have been taken by the Company for recovery of the principal and interest as stated in the applicable Regulations and Loan agreements.

Name of the statue	Nature of dues	Amount (RS in Lakhs)	Amount paid/ adjusted out of refunds RS ( in Lakhs)	Year to which the amount relates	Forum where the dispute is pending
Income Tax Act, 1961	Income Tax	152.41	152.41	2020 - 21	Commissioner
					of Income Tax
					(Appeals)
Goods and Service Tax	Delhi Goods and Service	8.08	0.21	2019-20	Proper Officer
act 2017	Tax Act 2017
	Uttar Pradesh Goods	72.94	5.40	2019-20	Additional
	and Service Tax Act 2017				Commissioner
					(Appeals)
	Uttar Pradesh Goods	24.35	0.00	2020-21	Proper Officer
	and Service Tax Act 2017
	West Bengal Goods and	0.12	0.01	2019-20	Proper Officer
	Service Tax Act 2017
	Karnataka Goods and	155.39	0.00	2023-24	Proper Officer
	Service Tax Act 2017
	Tamil Nadu Goods and	192.88	124.85	Around	Proper Officer
	Service Tax Act 2017			various years

e. According to the records of the company examined by us, the company is engaged primarily in lending activities. Therefore, the provisions of 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 either repayable on demand or without specifying any terms or period of repayment during the year. Hence, reporting under Clause 3(iii) (f) is not applicable.

4. Based on the information and explanations given to us, the Company has not granted any loans, made any investments, given guarantees and securities as referred in the provisions of Sections 185 and 186 of the Act. Accordingly, reporting under Clause 3(iv) is not applicable.

5. The Company has complied with the directives issued by the Reserve Bank of India with regard to the deposits accepted and amounts deemed to be deposits during the year. The Company being a Housing Finance Company registered with National Housing Bank provisions of

Sections 73 to 76 or any other relevant provisions of the Act, and the Companies (Acceptance of Deposits) Rules, 2014, as amended are not applicable. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or Reserve Bank of India or by any other court or tribunal with regard to aforesaid deposits.

6. To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act. Accordingly, the provisions of Clause 3(vi) of the said order are not applicable. 7. a. According to the records of the Company, it is regular in depositing undisputed statutory dues including provident fund, employees state insurance, Goods and Service Tax ("GST") and any other statutory dues to the appropriate authorities as of 31^st March, 2025. There are no undisputed dues outstanding for a period of more than six months from the date they became payable.

7. b. According to the records of the Company and according to the information and explanation given to us, there are no dues outstanding on account of any disputes in respect of income tax, service tax, customs duty or excise duty or goods and service tax except as detailed below:

8. According to the information and explanation provided and as represented to us by the management, there are no transactions not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, the provisions of Clause 3(viii) of the said order is not applicable.

9. a. The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender b. As represented to us by the company, the company has not been declared as a wilful defaulter by any bank or financial institution or other lender. c. As per the information and explanations provided by the Company, all term loans were applied for the purpose for which the loans were obtained. d. According to the information and explanations given to us, and 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 been used for long-term purposes by the company. e. According to the information and explanation provided by the Company and as represented to us, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its associate. The Company has no subsidiaries or joint ventures at any time during the year. f. According to the information and explanation provided by the Company and as represented to us, the Company did not hold any securities in its associate. It did not have any subsidiaries or joint ventures during the year. Accordingly, the provisions of Clause 3(ix)(f) of the Order are not applicable. 10. a. According to the information and explanation provided by the Company and as represented to us, there were no moneys raised by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the provisions of Clause 3(x)(a) of the Order are not applicable. b. According to the information and explanation provided by the Company and as represented to us, there were no preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, the provisions of Clause 3(x)(b) of the Order are not applicable.

11. a. According to the information and explanation provided by the Company and as represented to us, the following frauds on the Company which were noticed or reported during the year:

Sr. No.	Nature of fraud	involved (to the extent quantified by the Company) (RS in lakhs)	Remarks
1	Multiple deeds were executed by the vendors for the	329.89	The Company has reported 24 loan
	properties located in Arazi Nos. 219/2 and 230, Pipauri,		accounts as fraud and 100% provision has
	Kanpur. Documents were fabricated by perpetrators of fraud		been created for the same.
	for availing loan in KDA (Kanpur Devt. Authority) property.
2	Knowing that the property was already mortgaged to Tata	23.72	The Company has reported 1 loan account
	Capital HFL, perpetrators of fraud have sold the property		as fraud and 100% provision has been
	to our borrowers vendor.		created for the same
3	Borrower in order to meet his financial commitments	23.46	The Company has reported 1 account as
	colluded with freelancer and availed loan along with the		fraud and 100% provision has been created
	involvement of branch-in-charge.		for the same.
4	Borrowers have mortgaged the property with Bank of	22.61	The Company has reported 1 account as
	Maharashtra and availed business loan prior to our		fraud and 100% provision has been created
	funding on the property.		for the same.
5	Anomalies in accounting transactions	45.28	In Trichy branch, misappropriation of
			funds were identified in bank reconciliation
			statement. However, 100% provision has
			been created for the same and the same has
			been reported to NHB.

b. No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year and up to the date of this report. c. According to information and explanation provided to us and based on our audit procedures and enquiry with the vigil mechanism committee, there were complaints received during the year which we have taken into consideration while determining the nature, timing and extent of audit procedures. 12. In our opinion, the Company is not a Nidhi Company. Accordingly, the provisions of Clause 3(xii) of the Order are not applicable. 13. In our opinion and according to the information and explanation given to us and as represented to us by management, all transactions with the related parties are in compliance with Section 177 and 188 of the Act and the details have been disclosed in the Ind AS financial statements as required by the applicable accounting standards. 14. a. According to the information and explanation given to us and as represented to us by the management, the Company has an internal audit system (Risk Based Internal Audit system) carried out at branches on periodic basis is commensurate with the size and nature of its business of the Company. b. The reports of the Internal Auditors for the year under audit were considered by us to the extent furnished to us. 15. As represented to us by the management and according to the information and explanation given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable. 16. a. According to the information and explanation given, the Company is required to be registered under Section 29A of the National Housing Bank Act, 1987 and has obtained such registration. The company is not required to be registered u/s 45-IA of The RBI Act, 1934. b. According to the information and explanation given, the Company has conducted its housing finance activities with a valid Certificate from the National Housing Bank of India (NHB).

In terms of report dated June 17, 2020 of the Reserve Bank of India (RBI), existing HFCs holding CoR issued by NHB need not approach RBI for fresh CoR. c. According to the information and explanation given, the Company is not a Core Investment Company

(CIC) as defined in the regulations made by the

RBI. Accordingly, Clause 3(xvi)(c) of the Order is not applicable to the Company. d. According to the information and explanation given, the Group has no Core Investment Company as part of the Group. Accordingly, Clause 3(xvi)(d) of the Order is not applicable to the Company. 17. The Company has not incurred cash losses in the financial year and in the immediately preceding financial year.

18. According to the information and explanation furnished to us by the Company, there is no resignation of statutory auditors during the year. Accordingly, the provisions of Clause 3 (xviii) of the Order is not applicable. 19. According to the information and explanation furnished and as represented to us by the Company and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, we are of the opinion that no material uncertainty exists as on the date of the audit report and the Company will be 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. 20. a. According to the information and explanation furnished and as represented to us by the Company in respect of Corporate Social Responsibility (CSR) on other than on-going projects, it has no unspent amount to be transferred to a Fund specified in

Schedule VII to the Act in compliance with the second proviso to Section 135 (5) of the Act. Accordingly, of Registration(CoR) Clause 3(xx)(a) of the Order is not applicable to the Company.

b. The amount remaining unspent under Section 135 (5) of the Act, pursuant to on-going projects, has been transferred to special account in compliance with the provision of Section 135(6) of the Act

21. The Company doesnt have any subsidiaries and consolidated financial statements. Accordingly, the provisions of Clause 3(xxi) of the said order is not applicable.

For Rao & Emmar	For V.K. Ladha & Associates
Chartered Accountants	Chartered Accountants
Firm Registration No. 003084S	Firm Registration No. 002301C
Sd/-	Sd/-
B J Praveen	CA Rakesh Kumar
Partner	Partner
Membership No. 215713	Membership No. 546723
UDIN: 25215713BMJHGT4277	UDIN: 25546723BMIOFK5616
Place : Bengaluru
Date : April 23, 2025

Annexure B to the Independent Auditors Report Referred to in paragraph [2(g)] 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 over financial reporting with reference to the Ind AS Financial Statements of Can Fin Homes Limited ("the Company") as of March 31, 2025, in conjunction with our audit of the Ind AS 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 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 issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for 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 Companies Act, 2013 ("the Act").

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting 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, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls 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 over financial reporting was established and maintained and if such controls operated effectively all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 ensuring the orderly and sufficient and appropriate to opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting 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 over financial reporting 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 assurancein 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 over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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, the Company, has an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively in all 31^st March, 2025, 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 issued by the Institute of Chartered Accountants of India". However, management is advised to upgrade its information technology infrastructure including software to improve information security, minimize areas where transactions are handled manually, and connected systems and procedures.

For Rao & Emmar	For V.K. Ladha & Associates
Chartered Accountants	Chartered Accountants
Firm Registration No. 003084S	Firm Registration No. 002301C
Sd/-	Sd/-
B J Praveen	CA Rakesh Kumar
Partner	Partner
Membership No. 215713	Membership No. 546723
UDIN: 25215713BMJHGT4277	UDIN: 25546723BMIOFK5616
Place : Bengaluru
Date : April 23, 2025