Hasti Finance Ltd Auditor Reports

To the members of HASTI FINANCE LIMITED

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Financial Statements of HASTI FINANCE LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of material accounting policies and other explanatory information (herein referred to as “the standalone financial statements”)

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph and Emphasis of matters Paragraph below, the aforesaid standalone 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, and its Losses, total comprehensive income, its cash flows and changes in equity for the year ended on that date.

Basis for Qualified Opinion

The Company has not recognized provisions for long-term employee benefits, such as gratuity and leave encashment, nor has it carried out an actuarial valuation as required under Ind AS 19 - Employee Benefits. The Company accounts for such benefits on a cash basis. In our view, this is not in compliance with the requirements of Ind AS 19, which requires recognition and measurement of such obligations using actuarial valuation, irrespective of the size of the workforce or actual payout. The impact of this departure on the financial statements has not been quantified by the management.

We conducted our audit of Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those SAs are further described in the Auditors responsibilities for the audit of the Standalone 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 Standalone 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 and appropriate to provide a basis for our Qualified audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to the following matters referred in note 26 of Notes to standalone financial statements:

a) The company had received a bank attachment order from the Income Tax Department on 30.01.2020 in respect of Income Tax demands which is subject to rectification. As per the explanation given to us, the management is in the process of rectifying/ payment of the said demand.

b) Non-compliance of following statutory requirements:

a. The company has not appointed Internal Auditor as required under section 138 of the Companies act, 2013 read with Rule 13 of Companies (Accounts) Rules, 2014.

b. The company have not created Website and uploaded the required documents as specified in SEBI (LODR) Regulation 46.

c. The company has not published its notices/advertisements in newspapers as required by SEBI (LODR) Regulation 47.

d. We draw attention to Note Number 31 of the financial statements, which states that the Chief Financial Officer (CFO) of the Company did not attend the meeting of the Board of Directors at which the financial statements for the year ended 31st March, 2025 were approved. Consequently, the financial statements have been signed by two Directors in accordance with the provisions of Section 134 of the Companies Act, 2013.

As per the explanation given to us, the management is in process of regularization of these noncompliances and the penalties/late fees or any other outflow cannot be measured with sufficient reliability, no provision/contingencies are recorded in financial statements.

Our opinion is not modified in respect of these above matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:

Key Audit Matter	How the Key Audit Matter was addressed in our audit
1.Write-off of Loans Aggregating to Rs. 10,72,18,019 (Net Rs. 5,65,41,674) During the year, the Company has written off loans aggregating Rs. 10,72,18,019 (net amount written off Rs. 5,65,41,674 after adjusting Expected Credit Loss (ECL) provisions of Rs .5,06,76,345). These loans pertain to borrower accounts classified as Non-Performing Assets (NPAs) in prior periods. The materiality of the amount, compliance with RBI norms, and adequacy of recovery and documentation processes make this a key audit matter.	Our audit procedures included the following:
This area was considered a key audit matter due to the materiality of loan write-offs to the financial statements, the judgment involved in assessing recoverability, timing of write-offs, and compliance with regulatory guidelines. In addition, we noted instances of delay in initiating recovery proceedings post-default, and certain gaps in documentation regarding the status of enforcement actions, which required further audit scrutiny.	• We reviewed the Companys policy on writeoffs and its alignment with RBIs prudential norms.
	• We tested the design and operating effectiveness of controls around NPA identification, provisioning, and write-off approval process.
	• We obtained and examined management and audit committee approvals for significant write-offs during the year.
	• We traced a sample of write-offs to the underlying loan files to verify provisioning history, classification status, and basis for write-off.
	• We reviewed recovery efforts prior to writeoff and post-default enforcement actions, and inquired into delayed cases where documentation was lacking.
	• We evaluated the adequacy of disclosures made in the financial statements in accordance with applicable accounting and regulatory requirements.
	• Noted in certain cases delays in initiation of recovery proceedings and absence of detailed status updates on enforcement actions. These observations were factored into our audit response.

 

2.Write-off of Capital Advances Amounting to Rs. 2,72,40,243	Our audit approach included:
During the year, the Company has written off capital advances amounting to Rs. 2,72,40,243. These advances were originally made towards procurement of capital assets; however, based on management assessment, the likelihood of recovery was considered remote, leading to the decision to write off such amounts.	• We evaluated the nature and ageing of capital advances written off during the year.
We considered this a key audit matter due to the materiality of the amount written off, the judgment involved in evaluating the recoverability of capital advances, and the need to assess whether appropriate approvals, documentation, and disclosures were made in accordance with applicable accounting standards and internal policies.	• We verified the write-off approvals from management and/or the audit committee, and assessed whether appropriate documentation and rationale were maintained.
	• We assessed the steps taken by the Company to recover the advances prior to write-off, including any legal correspondence or settlement efforts.
	• We reviewed the accounting treatment and ensured that the write-off was appropriately recorded through the profit and loss account or adjusted as per applicable Ind AS.
	• We assessed the adequacy and clarity of the related disclosures in the financial statements, including managements rationale for nonrecoverability.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information in the Management Discussion and Analysis, Boards Report including Annexure to the Boards Report and Corporate Governance but does not include the standalone financial statements and our auditors report thereon.

Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone 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 required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone 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 standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) 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 accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone 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.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements:

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements 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 Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement of the Standalone 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 financial 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 the 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 Companys ability 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 Standalone 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone 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 Standalone 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 Standalone Financial Statements of the current period 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.

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 Companies Act, 2013, 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. (A) As required by Section 143(3) of the Act, we report that:

a) Except for the matter described in the Qualified Opinion and Emphasis of Matters paragraph of our report, 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) Except for the matter described in the Qualified Opinion and Emphasis of Matters paragraph of our report, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

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

d) Except for the matter described in the Qualified Opinion and Emphasis of Matters paragraph of our report, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.;

e) 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 March 31, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

g) 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 does not have any pending litigations which would impact its financial position except as disclosed in notes to financial statements;

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

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company during the year ended March 31, 2025.

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 my 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. The company has not declared or paid any dividend during the year ended March 31, 2025.

vi. Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its books of accounts for the financial year ended 31st March, 2025 which has feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

The audit trail records have been preserved by the Company in accordance with the statutory record retention requirements

3. 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.

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our Independent Auditors Report of HASTI FINANCE LIMITED on the standalone financial statements for the year ended March 31, 2025.)

(i) In respect of its property, plant and equipment

a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation, of Property, Plant and Equipment.

(B) The company does not have any intangible asset during the year hence reporting under clause 3(i)(a)(B) of the order is not applicable.

b) Property, Plant and Equipment are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the Property, Plant and Equipment has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification as informed to by management.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that, there is no immovable property owned by the company, hence reporting under clause 3(i)(c) of the order is not applicable.

d) The Company has not done a revaluation of Property, Plant and Equipment or intangible assets or both during the year.

e) There is no proceeding initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(ii) In respect of its Inventory

a) The Company does not have any inventory and hence reporting under clause 3(ii)(a) of the order is not applicable.

b) The Company has not been sanctioned working capital limits in excess of Rs.5 crore, in aggregate, at any point of time during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.

(iii)

a) According to the information and explanations given to us, the Company is principally engaged in the business of providing loans. Accordingly, the provisions of Clause 3(iii)(a) of the Order, which require reporting on loans made to subsidiaries, joint ventures and associates, are not applicable to the Company.

b) Based on the audit procedures carried out by us and according to the information and explanations provided by the management, we are of the opinion that the terms and conditions of the loans granted, guarantees provided, securities given, and investments made during the year are not prejudicial to the interest of the Company.

c) In respect of the loans and advances in the nature of loans granted by the Company, we report that the schedule of repayment of principal and payment of interest has been stipulated. The Company is a Non-Banking Financial Company (NBFC) regulated by the Reserve Bank of India and follows the applicable prudential norms. Except for certain instances of delays or defaults in repayment of principal and/or interest ? for which the Company has recognized provisions in accordance with Ind AS and RBIs Income Recognition and Asset Classification (IRAC) norms, as disclosed in Note 4 of the financial statements ? the borrowers are generally repaying the principal and interest as stipulated.

d) As informed to us, and based on our audit procedures, in respect of such loans and advances in the nature of loans, the total amount overdue for more than ninety days out of Rs. 9,10,37,794.87 as at March 31, 2025 is Rs. 904,99,335.87. In such cases, the Company has, in our opinion, taken reasonable steps for recovery of the overdue principal and interest. Further details in respect of the number of such cases and the amount involved are disclosed in Note 36(d) to the financial statements.

e) The Company is engaged in the business of lending loans as a Non-Banking Financial Company. Accordingly, Clause 3(iii)(e) of the Order, which requires reporting on loans renewed or extended or granted to settle overdues of existing loans, is not applicable to the Company.

f) According to the information and explanations provided to us, the Company has granted certain loans and advances in the nature of loans where the terms do not specify repayment schedule or are not repayable on demand. However, since the Company is an NBFC and such terms are customary for its line of business, and the relevant reporting under Clause 3(iii)(f) applies to entities other than NBFCs, the said clause is not applicable to the Company.

(iv) According to the information and explanations given to us and based on our audit procedures, the Company has complied with the provisions of Section 185 of the Companies Act, 2013 in respect of loans given.

In respect of the provisions of Section 186, we report that, being a Non-Banking Financial Company (NBFC), the Company is exempt from the provisions of Section 186, except sub-section (1). Based on our audit procedures and according to the information and explanations provided to us, the Company has not exceeded the limits specified under Section 186(1), and hence, the provisions applicable to the Company under Section 186 have been duly complied with

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Companies Act, 2013 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, reporting under Clause 3(v) of the Order is not applicable to the Company.

(vi) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company. Hence, reporting under clause 3(vi) of the Order is not applicable.

(vii) In respect of statutory dues:

a) According to the information and explanation given to us, except for Income Tax Payable of Rs. 17,460,948 and TDSCPC demand of Rs. 1,72,627.50 including interest thereon as per portal, there are no undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth Tax, GST, Custom Duty, Service Tax, Investor Education and Protection Fund, Excise Duty, Cess and any other statutory dues as at March 31, 2025 for a period of more than six months from the date of becoming payable.

b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, GST, duty of customs, duty of excise, value added tax outstanding on account of any dispute.

(viii) In our opinion and according to the information and explanations given to us, there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) a) According to the information and explanations given to us, the Company has not taken any loans or other borrowings from any lender during the year. Accordingly, reporting under Clause 3(ix)(a) of the Order is not applicable.

b) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authority.

c) The Company has not obtained any term loans during the year and there were no outstanding term loans at the beginning of the year. Accordingly, reporting under Clause 3(ix)(c) of the Order is not applicable.

d) The Company has not raised any funds on short-term basis during the year. Accordingly, reporting under Clause 3(ix)(d) of the Order is not applicable.

e) Based on an overall examination of the financial statements, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.

f) The Company has not raised any loans during the year. Accordingly, reporting under Clause 3(ix)(f) of the Order is not applicable.

(x) a) The Company has not raised any moneys by way of initial public offer or further public offer

(including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

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.

(xi) a) No fraud by the Company and no material fraud on the Company has been noticed or reported

during the year.

b) We have not come across of any instance of material fraud by the Company or on the Company

during the course of audit of the financial statement for the year ended March 31, 2025, accordingly the provisions stated in paragraph (xi)(b) of the Order is not applicable to the Company.

c) According to the information and explanations given to us, there were no whistle blower

complaints received by the Company during the year and hence reporting under clause 3(xi)(c) of the Order is not applicable.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, all transaction with 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 notes to the financial statements as required by the applicable accounting standards.

(xiv) a) In our opinion the Company is required to have an adequate internal audit system

commensurate with the size and the nature of its business.

b) As the company does not have Internal Auditor, the reports were not available for consideration.

(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) a) In our opinion, the Company is required to be registered under section 45-IA of the Reserve

Bank of India Act, 1934 and the Company is already registered under Section 45-IA of the Reserve Bank of India Act, 1934, as Non-Deposit taking Company vide Registration No.07.00329 dated 22^nd September, 1998.

b) The company is already a registered NBFC company and hence reporting under clause 3(xvi)(b) of the Order is not applicable.

c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the

Reserve Bank of India and hence reporting under clause 3(xvi)(c) of the Order is not applicable.

d) Based on the information and explanations provided to us during the course of the audit, in our

opinion, there is no Core Investment Company (CIC) forming part of the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016). Accordingly, reporting under Clause 3(xvi)(d) of the Order is not applicable.

(xvii) The company has not incurred cash losses during the financial year and in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year. Hence, the provisions stated in paragraph 3 (xviii) of the Order are not applicable to the Company.

(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and 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 indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) In our opinion and according to the information and explanations given to us, the provisions of section 135 of the Companies Act, 2013 with respect to Corporate Social Responsibility are not applicable to the company and hence reporting under clause 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

(xxi) According to the information and explanations given to us, the Company does not have any Subsidiary, Associate or Joint Venture. Accordingly, reporting under Clause 3(xxi) of the Order is not applicable.

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls with reference to the aforesaid Standalone Financial Statements under Clause (i) Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

(Referred to in paragraph (2) (f) under Report on Other Legal and Regulatory Requirements section of our Independent Auditors Report of HASTI FINANCE LIMITED on the standalone financial statements for the year ended March 31, 2025)

We have audited the internal financial controls over financial reporting of HASTI FINANCE LIMITED (“the Company”) as of March 31, 2025 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal controls with reference to Standalone Financial Statements 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 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.

Auditors Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company 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”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 in 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 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 Standalone Financial Statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

A companys internal financial controls with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial controls with reference to Standalone 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 Standalone 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 Standalone Financial Statements .

Inherent Limitations of Internal Financial Controls with reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls with reference to Standalone 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 Standalone Financial Statements to future periods are subject to the risk that the internal financial control with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Other Matter

The company has a weak credit appraisal and recovery system in respect of loans given by the company. The company has received a bank attachment order from Income Tax Department. The

company has not appointed Internal Auditor as required under section 138 of the Companies act, 2013 read with Rule 13 of Companies (Accounts) Rules, 2014.

Opinion

In our opinion, except for the possible effects of the foregoing on the achievement of the objectives of the control criteria, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financial statements were operating effectively as at March 31, 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.

For Vandana V. Dodhia & Co.

Chartered Accountants

Firm Regd. No. 117812W

Sd/-

CA Vandana V. Dodhia

Partner

Membership No. 104000

Place: Mumbai

Date: 30-05-2025

UDIN: 25104000BMLCXC6498