Fedbank Financial Services Ltd Auditor Reports

To

The Members of

Fedbank Financial Services Limited

Report on the audit of the Financial Statements

OPINION

1. We have audited the accompanying Financial
Statements of Fedbank Financial Services Limited (the
Company), which comprise the Balance Sheet as at
31 March 2026, and the Statement of Profit And Loss
(including Other Comprehensive Income), Statement
of Changes in Eguity and Statement of Cash Flows
for the year ended on that date, and notes to the
Financial Statements, including a summary of material
accounting policies and other explanatory information
(the Financial Statements).

2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Financial Statements give the information reguired
by the Companies Act, 2013 (Act) in the manner so
reguired 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 31 March 2026, and its Profit and
Other Comprehensive Income, Changes in Eguity and
its Cash Flows for the year ended on that date.

BASIS FOR OPINION

3. We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those SAs
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 reguirements that are relevant
to our audit of the Financial Statements under the
provisions of the Act, and the rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these reguirements and the Code
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion on the Financial Statements.

KEY AUDIT MATTERS

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Financial Statements of the current year. 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

Sr. Key Audit Matter No	How the Key Audit Matter was addressed in our audit
1 Provisioning based on Expected Credit Loss model (ECL) under IND AS 109 - Financial Instruments.
Refer to the accounting policies in Note 2.5 to the Financial Statements: Expected Credit Loss, Note 3.2 to the Financial Statements: Revenue Recognition Note 3.6? to the Financial Statements: Impairment of Financial Assets and Note 44 to the Financial Statements: Risk Management.
Subjective estimates:	Our key audit procedures included:
As at 31 March 2026, the Company has reported gross loan assets of Rs. 14,505.48 crores against which an impairment loss of Rs. 186.63 crores has been recognised.	Review of Policy/procedures & design/controls
Under Ind AS 109, "Financial Instruments", allowance for impairment on loans are determined using expected credit loss (ECL) estimation model. The Company updated its ECL policy in the year under audit. The revised ECL Model framework integrates both model-based outcomes and significant management judgement through overlays and exceptions, particularly for those falling under early warning signals. The estimation of ECL on financial instruments involves significant judgement and estimates and therefore increased levels of audit focus in the Companys estimation of ECLs, which are as under:	Reviewed the Board-approved ECL policy and documentation supporting provisioning logic, default assessment and staging methodology, with particular focus on judgemental elements introduced (including refresh activity conducted during the period under audit).
- Data inputs - The application of ECL model requires multiple internal and external data inputs. This increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model.	Testing key controls relating to selection and implementation of material macro-economic variables and the controls over the scenario selection and application of probability weights. Review of changes made to the macro scenarios and board approved overlay notes.
- Model estimations - Inherently judgmental models are used to estimate ECL which involves determining Probabilities 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 considered the most significant judgmental aspect of the Companys modelling approach. Management overlays were introduced on certain asset classes where historical data limitations or forward-looking risk indicators warranted additional provisions.	Assessing the design, implementation and operating effectiveness of key internal financial controls along with the monitoring process of overdue loans (including those which became overdue after the reporting date), measurement of provision, stage-wise classification of loans, identification of Non-Performing Assets ("NPA") accounts, assessing the reliability of management information.
- Economic scenarios - Ind AS 109 requires the Company to measure ECLs on an unbiased forward-looking basis reflecting a range of future economic indicators. Significant management judgement is applied in determining the economic scenarios used and the probability weights applied to them.	Understanding managements 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.
Considering the significance of the above matter to the overall financial statements and extent of managements estimates and judgements involved, it requires significant auditor attention. Accordingly, we have identified this as a key audit matter.	Testing and review of controls over measurement of provisions and disclosures in the Financial Statements.
	Involvement of Information technology experts in the audit to obtain comfort over data integrity and process of report generation through interface of various systems.
	Substantive verification
	Sample testing over key inputs, data and assumptions impacting ECL calculations to assess the completeness, accuracy and relevance of data and reasonableness of economic forecasts, weights, and model assumptions applied.
	Testing the model calculations through selective re- performance.
	Checking data for assessing reasonableness of judgements made in respect of calculation methodologies, segmentation, economic factors, the period of historical loss rates used and the valuation of recovery assets and collateral (including collateral in the form of gold.)
	Assessing disclosures - Assessed whether the disclosures on key judgements, assumptions and quantitative data with respect to impairment of loans (including restructuring related disclosures) in the Financial Statements are appropriate and sufficient as also aligned to regulatory requirements.
2 Information Technology
IT systems and controls The Companys financial reporting processes are dependent on technology considering significant number of transactions that are processed daily across multiple and discrete Information Technology (IT) systems. The Financial accounting system of the Company is interfaced with several other IT systems including Loan Management & Originating systems and several other systemic workflows.	In course of audit, we, inter alia, reviewed user access management, change management, segregation of duties, system reconciliation controls and key financial accounting and reporting systems. We performed a range of audit procedures, which included:
IT general and application controls are critical to ensure that changes to applications and underlying data are made in an appropriate manner. Adequate controls contribute to mitigating the risk of potential fraud or errors as a result of changes to the applications and data. These includes implementation of preventive and detective controls across critical applications and infrastructure.	Deployed our internal experts to carry out IT general Controls testing and identifying gaps, if any.
Due to the pervasive nature of role of information technology systems in financial reporting, in our preliminary risk assessment, we planned our audit by assessing the risk of a material misstatement arising from the technology as significant for the audit, hence the Key Audit Matter.	Our other processes include:
	Obtained an understanding of the Companys IT landscape, including core lending systems, accounting systems, interfaces, and reports relevant to financial reporting.
	-Evaluating the design, implementation and operating effectiveness of the significant accounts- related IT automated controls which are relevant to the accuracy of system calculation, and the consistency of data transmission including access
	management (user access provisioning, changes and deactivation), program change controls, and IT operations controls such as backups and job monitoring.
	Evaluated segregation of duties within the IT environment and reviewed privileged access controls.
	Testing of the system generated reports and accounting entries manually for core financial reporting matters (i.e. verification around the computer system)
	Performed substantive procedures where control deficiencies or system limitations were noted, to compensate for any identified risks.
	Evaluated the automated controls with reference to system interface with key financial applications that impact significant accounts and disclosures.

OTHER INFORMATION

5. The Companys Board of Directors are responsible for
the other information. The other information comprises
the information included in the Companys annual
report but does not include the Financial Statements
and our auditors report thereon. The Other Information
is expected to be made available to us after the date of
this auditors report

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

7. 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 in the audit or otherwise
appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a
material misstatement of this other information, we are
reguired to report that fact.

8. When we read the Annual Report, if we conclude that
there is a material misstatementtherein, we are reguired

to communicate the matter to those charged with
governance and take appropriate action as applicable
under the relevant laws and regulations.

RESPONSIBILITIES OF MANAGEMENT AND THOSE

CHARGED WITH GOVERNANCE FOR THE FINANCIAL

STATEMENTS

9. 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 State of Affairs, profit
and Other Comprehensive Income, Changes in Eguity
and Cash Flows of the Company 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 and
other accounting principles generally accepted in
India. This responsibility also includes maintenance of
adeguate 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 of the appropriate
accounting software for ensuring compliance with
applicable laws and regulations including those related
to retention of audit logs; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adeguate
internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation
and presentation of the Financial Statements that
give a true and fair view and are free from material
misstatement, whether due to fraud or error.

10. In preparing the Financial Statements, the Board of
Directors is responsible for assessing the 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 the Board
of Directors either intends to liguidate the Company or
to cease operations, or has no realistic alternative but
to do so.

11. The Board of Directors is also responsiblefor overseeing
the Companys financial reporting process.

AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE

FINANCIAL STATEMENTS

12. 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 judgment and maintain
professional skepticism throughout the audit. We also:

12.1 .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.

12.2.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) the Act, we are also responsible for expressing
our opinion on whether the Company has adeguate
internal financial controls with reference to Financial
Statements in place and the operating effectiveness of
such controls.

12.3. Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management.

12.4. Conclude on the appropriateness of the 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 Companys
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are reguired to
draw attention in our auditors report to the related
disclosures in the Financial Statements or, if such
disclosures are inadeguate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditors report. Flowever, future
events or conditions may cause the Company to cease
to continue as a going concern.

12.5. 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.

13. 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.

14. We also provide those charged with governance with
a statement that we have complied with relevant
ethical reguirements 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.

15. From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the Financial
Statements of the current year 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 conseguences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.

REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

16. As reguired 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.

17. As reguired by Section 143(3) of the Act, we report that:

17.1. 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.

17.2. In our opinion, proper books of accounts as reguired by
law have been kept by the Company so far as it appears
from our examination of those books except for the
matters stated in paragraph 18.8 below on reporting
under Rule 11 (g) of the Companies (Audit and Auditors)
Rules, 2014 (as amended).

17.3. The balance sheet, the statement of profit and
loss (including Other Comprehensive Income), the
Statement of Changes in Eguity and the Cash Flow
Statement dealt with by this Report are in agreement
with the books of account.

17.4.In our opinion, the aforesaid Financial Statements
comply with the Ind AS specified under Section 133 of
the Act read with the relevant rules thereunder.

17.5.On the basis of the written representations received
from the directors, none of the directors is disgualified
as on 31 March 2026 from being appointed as a director
in terms of Section 164(2) of the Act.

17.6. The modification relating to the maintenance of books
of accounts and other matters connected therewith
are as stated in the paragraph 17.2 above on reporting
under Section 143(3)(b) and paragraph 18.8 below on
reporting under Rule 11 (g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended).

17.7. With respect to the adeguacy of the internal financial
controls with reference to Financial Statements of
the Company and the operating effectiveness of such
controls, refer to our separate Report in Annexure B.

17.8.In our opinion and according to the information and
explanations given to us, the remuneration paid by the
Company to its directors during the current year is in
accordance with the provisions of Section 197 of the
Act. The remuneration paid to any director is not in
excess of the limit laid down under Section 197 of the
Act.

18. 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:

18.1. The Company has disclosed the impact of pending
litigations as at 31 March 2026 on its financial position
in its Financial Statements - Refer Note 53 to the
Financial Statements;

18.2. The Company did not have any long-term contracts
including derivative contracts for which there were any
material foreseeable losses.

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

18.4. The Management has represented, to best of their
knowledge and belief, that 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.

18.5. The Management has represented, to best of their
knowledge and belief, that 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.

18.6. Based on such audit procedures, that have been
considered reasonable and appropriate in the
circumstances, performed by us, nothing has come
to our notice that has caused us to believe that the
representation under sub clause (i) and (ii) of Rule 11 (e),
as provided under para 18.4 and 18.5 above, contain
any material misstatement.

18.7.In our opinion and according to information and
explanation given to us, the Company has not declared
or paid dividend during theyear, accordingly compliance
with section 123 of the Act by the Company is not
applicable.

18.8.Based on our examination, the company, has used
accounting softwares for maintaining its books of
account which , along with access management

tools, as applicable, has a feature of recording audit
trail (edit log) facility. Further, the audit trail facility has
been operating throughout the year for all relevant
transactions recorded in the accounting software
except for the instances reported below -

1. For maintenance of Books of Accounts under
Ind AS (Accounting Framework applicable to the
Company), the feature of maintaining audit trail
(edit log) was not enabled, however same was
enabled effective April 2026.

Further, where audit trail (edit log) facility was enabled
and operated, we did not come across any instance
of audit trail feature being tampered with during the
course of our audit.

Additionally, other than for the softwares where audit
trail (edit log) facility was not enabled in the previous
year, the audit trail has been preserved by the Company
as per the statutory reguirements for record retention.

For KKC & Associates LLP

Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621

Hasmukh B Dedhia

Partner

ICAI Membership No: 033494
UDIN: 26033494FGYDJC3158

Place: Mumbai
Date: 28 April 2026

Annexure A to the Independent Auditors Report on the Financial Statements of Fedbank Financial
Services Limited for the year ended 31 March 2026

(Referred to in paragraph 16 under Report on Other Legal and Regulatory Requirements section of our report of even date)

i. (a) The Company has maintained proper records

showing full particulars including guantitative
details and situation of Property, Plant and
Eguipment (PPE).

The Company is maintaining proper records
showing full particulars of intangible assets.

(b) The Company has a regular programme of
physical verification of its PPE by which all PPE are
verified once a year. In our opinion, this periodicity
of physical verification is reasonable having
regard to the size of the Company and the nature
of its assets. Pursuant to the programme, all
PPE were physically verified by the Management
during the year. In our opinion, and according to
the information and explanations given to us,
discrepancies noticed, which were not material,
have been dealt with in books of accounts properly.

(c) In our opinion and according to the information
and explanations given to us and on the basis of
our examination of the records of the Company,
the Company does not have any immovable
property (other than immovable properties
where the Company is the lessee, and the lease
agreements are duly executed in favour of the
lessee), hence reporting under paragraph 3(i)(c) of
the Order is not applicable to the Company.

(d) In our opinion and according to the information
and explanations given to us, the Company has not
revalued its PPE (including Right of Use assets) or
intangible assets or both during the year.

(e) In our opinion and according to the information
and explanations given to us and on the basis of
our examination of the records of the Company,
no proceedings have been initiated or are
pending against the Company for holding any
benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder.

ii. (a) The Company does not have inventory since its

principal business is to give loans, hence physical
verification of inventory and reporting under
paragraph 3(ii)(a) of the Order is not applicable to
the Company.

(b) In our opinion and according to the information
and explanations given to us, the Company has
been sanctioned working capital limits in excess
of rupees five crore, in aggregate, from banks or

financial institutions which are secured on the
basis of security of current assets. The difference
between the guarterly returns or statements filed
by the Company with such banks or financial
institutions and the books of account of the
Company is not material in nature.

iii. (a) According to the information and explanations
given to us and on the basis of our examination
of the records of the Company, the Companys
principal business is to give loans. Accordingly,
clause 3(iii)(a) of the Order is not applicable.

(b) In our opinion, and according to the information
and explanations given to us, the investments
made and the terms and conditions of the grant
of all loans are not prejudicial to the Companys
interest. Further, the Company has not provided
any advance in the nature of loans, guarantee
or security to companies, firms, limited liability
partnership or other parties during the year.

(c) & (d) The Company, being a Non-Banking

Finance Company ("NBFC"), registered
under provisions of RBI Act, 1934 and
rules made thereunder, in pursuance of its
compliance with provisions of the said Act/
Rules, particularly, the Income Recognition,
Asset Classification and Provisioning
Norms, monitors repayments of principal
and payment of interest by its customers
as stipulated. In our opinion and according
to the information and explanations given to
us, 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 in cases where repayment
of principal and payment of interest is not
received as stipulated, the cognizance
thereof is taken by the Company in course
of its periodic regulatory reporting. Refer
note 8.3 to the Financial Statements for
summarised details of such loans/advances
which are not repaid by borrowers as per
stipulations as also details of steps taken by
the Company for recovery thereof.

(e) According to the information and explanations
given to us and on the basis of our examination
of the records of the Company, the Companys
principal business is to give loans. Accordingly,
clause 3(iii)(e) of the Order is not applicable.

(f) Based on our audit procedures and the information
and explanation made available to us, the
Company has not granted any loans or advances
in the nature of loans to Promoters/Related Parties
(as defined in section 2(76) of the Act which are
either repayable on demand or without specifying
any terms or period of repayment.

iv. In our opinion and according to the information and
explanations given to us, the Company has complied
with the provisions of sections 185 and 186(1) of the
Act with respect to the loans given and investments
made. The Company has not provided any guarantee
or security during the year.

v. In our opinion and according to the information
and explanations given to us, the Company has not
accepted any deposits or amounts which are deemed
to be deposits from the public during the year in terms
of directives issued by the Reserve Bank of India or the
provisions of Sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there

under. Accordingly, paragraph 3(v) of the Order is not
applicable to the Company.

vi. The Company is not reguired to maintain cost records
under Section 148(1) of the Companies Act, 2013 read
with Companies (Cost Records and Audit) Rules, 2014
and hence reporting under paragraph 3(vi) of the Order
is not applicable to the Company.

vii. (a) The Company does not have liability in respect

of Service tax, Duty of excise, Sales tax and
Value added tax during the year since effective
1 July 2017, these statutory dues has been
subsumed into GST. In our opinion and according
to the information and explanations given to
us, amounts deducted/accrued in the books of
account in respect of undisputed statutory dues
including Goods and Services Tax, provident fund,
employees state insurance, income-tax,, duty of
customs, cess and any other statutory dues have
been regularly deposited by the Company with the
appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident
fund, employees state insurance, income-tax, Goods and Services Tax, duty of customs, cess and other material
statutory dues were in arrears as at 31 March 2026 for a period of more than six months from the date they became
payable, except as reported as below.

Name of the Statute	Nature of the Dues	Amount (Rs. In lakhs)	Period to which the amount relates	Due Date	Date of Payment	Remarks, if any
Tamil Nadu Tax on Professions, Trades, Callings and Employments Act, 1992	Profession Tax	7	April 24-September 25	Various Due dates	On Various due dates	Not paid till audit report date.

(b) In our opinion and according to the information and explanations given to us, there are no dues of provident fund,
duty of customs, cess and any other statutory dues, which have not been deposited to/with the appropriate authority
on account of any dispute. The Particulars of dues of Goods and Services tax and Income Tax which have not been
deposited to/with the appropriate authority on account of any dispute are as follows:

Name of the Statute	Nature of the Dues	Amount (Rs. In Lakhs)	Period to which the amount relates	Forum where dispute is pending	Remarks, if any
Goods and Service Tax (GST) Act, 2017	GST, Interest and Penalty.	7	FY 2017-18	Sales Tax Officer	Net of amount paid under protest
GST Act, 2017	GST, Interest and Penalty.	14	FY 2017-18	Sales Tax Officer	Net of amount paid under protest
Income Tax Act, 1961	Income Tax	32	AY 2011-12	Commissioner of Income Tax (Appeal)
Income Tax Act, 1961	Income Tax	9	AY 2017-18	Commissioner of Income Tax (Appeal)

Annexure A to the Independent Auditors Report on the Financial Statements of Fedbank Financial Services
Limited for the year ended 31^st March, 2026 (Contd.)

Name of the Statute	Nature of the Dues	Amount (Rs. In Lakhs)	Period to which the amount relates	Forum where dispute is pending	Remarks, if any
Income Tax Act, 1961	Income Tax	62	AY 2022-23	Commissioner of Income Tax (Appeal)
GST Act,2017	GST, Interest and Penalty.	23	FY 2020-21	Sales Tax Officer	Net of amount paid under protest
GST Act,2017	GST and Interest	32	FY 2021-22	Sales Tax Officer	Net of amount paid under protest
GST Act,2017	GST, Interest and Penalty.	9	FY 2021-22	Sales Tax Officer	Net of amount paid under protest

viii. In our opinion and according to the information and
explanations given to us and on the basis of our
examination of the records of the Company, we confirm
that we have not come across any 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.

ix. (a) In our opinion, the Company has not defaulted in

repayment of loans or other borrowings to financial
institutions, banks, and dues to debenture holders
or in the payment of interest thereon to any lender.
The Company does not have any borrowings from
the Government.

(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 or any
other lender.

(c) In our opinion and according to the information
and explanations given to us, the Company has
utilized (including temporary parking of surplus
funds in liguid assets) the money obtained by way
of term loans during the year for the purposes for
which they 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) The Company does not have any subsidiaries,
associates or joint ventures. Accordingly,
paragraph 3(ix) (e) of the Order are not applicable
to the company.

(f) The Company does not have any subsidiaries,
associates or joint ventures. Accordingly,

paragraph 3(ix) (f) of the Order are not applicable
to the company

x. (a) The Company did not raise money by way of initial

public offer or further public offer (including debt
instruments) during the year.

(b) During the year the Company has not made any
preferential allotment or private placement of
shares or convertible debentures (fully or partly or
optionally) and hence reporting under clause 3(x)
(b) of the Order is not applicable to the Company.

xi. (a) During the course of our examination of the

books and records of the Company, carried out in
accordance with the generally accepted auditing
practices in India, and according to the information
and explanations given to us, no material fraud by
the Company or on the Company has been noticed
or reported during the course of our audit, other
than the instances of fraud noticed and reported
by the management to the regulator. Refer Note
No. 48.13 to the Financial Statements

(b) In our opinion and according to the information
and explanations given to us, no report under sub
section (12) of section 143 of the Act has been
filed by the auditors in Form ADT-4 as prescribed
under rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.

(c) We have taken into consideration the whistle
blower complaints received by the Company
during the year and provided to us, when
performing our audit.

xii. In our opinion and according to the information and
explanations given to us, the Company is not a Nidhi
company. Accordingly, paragraph 3(xii) of the Order is
not applicable to the Company.

xiii. According to the information and explanations given to
us and based on our examination of the records of the

Company, transactions with the related parties are in
compliance with Sections 177 and 188 of the Act where
applicable and details of such transactions have been
disclosed in the financial statements as required by the
applicable accounting standards.

xiv. (a) In our opinion and based on our examination,

the Company has an internal audit system
commensurate with the size and nature of its
business.

(b) We have considered the internal audit reports of
the Company issued till date, for the period under
audit.

xv. According to the information and explanations given
to us, in our opinion during the year the Company
has not entered into any non-cash transactions with
its directors or persons connected with its directors.
Accordingly, paragraph 3(xv) of the Order is not
applicable to the Company.

xvi. (a) In our opinion, the Company is required to be

registered under Section 45-1A of the Reserve
Bank of India Act, 1934 and the Company has
obtained the required registration.

(b) In our opinion, the Company has conducted Non-
Banking Financial and Housing Finance activities
and has obtained a valid Certificate of Registration
(CoR) from the Reserve Bank of India as per the
Reserve Bank of India Act, 1934.

(c) The Company is not a Core Investment Company
("ClC") as defined in the regulations made by
Reserve Bank of India. Accordingly, clause 3(xvi)
(c) of the Order is not applicable

(d) In our opinion there are no CIC within the Group
(as defined in the Core Investment Companies
(Reserve Bank) Directions 2016) and accordingly
reporting under clause 3(xvi)(d) of the order is not
applicable to the Company.

xvii. The Company has not incurred any cash losses in
the financial year and in the immediately preceding
financial year.

xviii. There has been no resignation of the statutory auditors
during the year and accordingly paragraph 3(xviii) of
the Order is not applicable.

xix. According to the information and explanations given
to us and on the basis of the financial ratios, ageing

and expected dates of realization of financial assets
and payment of financial liabilities, along with the
details provided in Note 22 and 55 to the financial
statements which describe the maturity analysis
of the assets and liabilities and 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.

Also, refer to the Other Information paragraph of
our main audit report which explains that the other
information comprising the information included in
Annual report is expected to be made available to us
after the date of this auditors report.

xx. In our opinion and according to the information and
explanations given to us, there is no unspent amount
under sub-section (5) of Section 135 of the Act pursuant
to any project. Accordingly, clauses 3(xx)(a) and 3(xx)
(b) of the Order are not applicable to the Company.

For KKC & Associates LLP

Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621

Hasmukh B Dedhia

Partner

ICAI Membership No: 033494
UDIN: 26033494FGYDJC31 58

Place: Mumbai
Date: 28 April 2026

Annexure B to the Independent Auditors report on the Financial Statements of Fedbank Financial
Services Limited for the year ended 31 March 2026

(Referred to in paragraph 17.7 under Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls with reference to

the aforesaid Financial Statements under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (the

Act).

OPINION

1. We have audited the internal financial controls with
reference to the Financial Statements of Fedbank
Financial Services Limited (the Company) as at
31 March 2026 in conjunction with our audit of the
Financial Statements of the Company for the year
ended on that date.

2. In our opinion, the Company has, in all material respects,
an adequate internal financial controls with reference
to the Financial Statements and such internal financial
controls were operating effectively as at 31 March 2026,
based on the internal controls 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 (the Guidance Note).

MANAGEMENTS RESPONSIBILITY FOR INTERNAL

FINANCIAL CONTROLS

3. The Companys management is responsible for
establishing and maintaining internal financial controls
based on the internal controls over financial reporting
criteria established by the Company considering the
essential components of internal control stated in
the Guidance Note. 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 the 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

4. Our responsibility is to express an opinion on the
[Companys / Banks] internal financial controls with
reference to the Financial Statements based on our
audit. We conducted our audit in accordance with
the Guidance Note and the Standards on Auditing
(SA ), prescribed under section 143(10) of the Act, to
the extent applicable to an audit of internal financial
controls with reference to the Financial Statements.

Those SAs and the Guidance Note require that we
comply with the ethical requirements and plan and
perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with
reference to the Financial Statements were established
and maintained and whether such controls operated
effectively in all material respects.

5. Our audit involves performing procedures to obtain
audit evidence about the adequacy of the internal
financial controls system with reference to the
Financial Statements and their operating effectiveness.
Our audit of internal financial controls with reference
to the Financial Statements included obtaining an
understanding of internal financial controls with
reference to the 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.

6. 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 the Financial Statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH

REFERENCE TO THE FINANCIAL STATEMENTS

7. A companys internal financial controls with reference
to the 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 controls with reference
to the Financial Statements include 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 THE FINANCIAL
STATEMENTS

8. Because of the inherent limitations of internal
financial controls with reference to the 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 the
Financial Statements to future periods are subject to
the risk that the internal financial controls with reference
to the Financial Statements may become inadeguate

because of changes in conditions, or that the degree
of compliance with the policies or procedures may
deteriorate.

For KKC & Associates LLP

Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621

Hasmukh B Dedhia

Partner

ICAI Membership No: 033494
UDIN: 26033494FGYDJC3158

Place: Mumbai
Date: 28 April 2026