Hasti Finance Ltd Auditor Reports

To the membersof HASTIFINANCE LIMITED

Reporton theAudit of the Standalone Financial Statements

Opinion

We have audited the accompanying Financial Statements of HASTI FINANCE LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2024, 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 (hereinreferred to as "the standalone financial statements")

In our opinion and to the best of our information and according to the explanations given to us, 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, 2024, and its profit, total comprehensive income, its cash flows and changes in equity for the year ended on that date.

Basis for Opinion

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 ouraudit opinion on the standalone financial statements.

Emphasisof Matter

We drawattention to the following matters referredin note 26of Notes to standalone financial statements: a) The company has received a bank attachment order from the Income Tax Department on 30.01.2020 in respect of Income Tax demand as on that date. As per the explanation given to us, the management isin the process of rectifying /payment of the saiddemand .

b) Non-complianceof following statutory requirements: a. The company has not appointed Internal Auditor as required under section 138 of the

Companies act,2013 read withRule 13 ofCompanies (Accounts)R ules,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.

As per the explanation given to us, the management is in process of regularization of these non-compliances and the penalties/late fees or any other outflow cannot be measured with sufficient reliability, noprovision/contingencies are recordedin financial statements. Ouropinion isnot modifiedin respect of theseabove matters.

Key AuditMatters

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 as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:

Sr. Key Audit Matter No.	How the Key Audit Matter was addressed in our audit
1. Measurement of Impairment on Financial Assets - Loans	Assessed the appropriateness of managements judgment and estimates used in the impairment analysis through procedures that included, but were not limited, to the following:
Refer Note 1(L) for material accounting policies and Note 33 (i) for credit risk disclosures.	• Obtained an understanding of the modelling techniques adopted by the Company including the key inputs and assumptions. Since modelling assumptions and parameters are based on historical data, we assessed whether historical experience was representative of current circumstances and was relevant in view of the recent impairment losses incurred within the portfolios.
The Company has reported gross loan assets of INR 19,67,72,220 against which an impairment loss of INR 5,23,91,662 has been recorded. The Company recognised impairment provision for loan assets based on the Expected Credit Loss approach laid down under ‘Ind AS 109 – Financial Instruments.	• Considered the Companys accounting policies for estimation of expected credit loss on loans and assessed the compliance with the policies in terms of Ind AS 109.
The calculation of impairment losses on loans is complex and is based on the application of significant management judgement and the use of different modelling techniques and assumptions which are uncertain and could have a material impact on reported profits. The Company has applied a three-stage approach based on changes in credit quality to measure expected credit loss on loans which is as follows:	• Tested the design and operating effectiveness of key financial controls over the completeness and accuracy of the key inputs and assumptions considered for calculation, recording and monitoring of the impairment loss recognized.
• If the loan is not credit-impaired on initial recognition, then it is classified in ‘Stage 1 and its credit risk is continuously monitored by the Company i.e. the default in repayment is within the range of 0 to 30 days.	Also evaluated the controls over the modelling process, validation of data and related approvals.
• If a significant increase in credit risk since initial recognition is identified, it is moved to ‘Stage 2 but is not yet deemed to be credit-impaired i.e. the default in repayment is within the range of 31 to 90 days.	• Tested the assumptions underlying the impairment identification and quantification including the forecast of future cash flows by corroborating it with the revised repayment schedules of the borrowers which included the impact of the moratorium and restructuring.
• If the loan is credit-impaired, it is then moved to ‘Stage 3 i.e. the default in repayment is more than 90 days. The Expected Credit Loss is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage 3 loan assets. Significant management judgement and assumptions involved in measuring	Understood and challenged the aforesaid assumptions through our understanding of the risk profile of the customers of the Company.
ECL is required with respect to:	• Reconciled the total financial assets considered for ECL estimation with the books of account to ensure the completeness.
• determining the criteria for a significant increase in credit risk	• Verified, on test check basis, whether appropriate staging of assets have been performed basis their days past due. Further, performed an overall assessment of the ECL provision levels at each stage. • Verified assets in stage 1, 2 and 3 on sample basis and tested that they were allocated to the appropriate stage.
• factoring in future economic assumptions	For samples of exposure, verified the appropriateness of determining Exposure at Default (EAD), PD and LGD.
• techniques used to determine probability of default, loss given default and exposure at default.	• Assessed the adequacy and appropriateness of disclosures in compliance with the Ind AS 107 in relation to ECL especially in relation to judgements used in estimation of ECL provision.
These parameters are derived from the Companys internally developed statistical models and other historical data.
In view of the above, the measurement of impairment loss on loans was determined to be a Key Audit Matter in our audit of the financial statements.

Information Other than theStandalone Financial Statements and AuditorsReport 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 ourauditors reportthereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we donot express any form ofassurance conclusion thereon.

Inconnection with our audit of the Standalone Financial Statements, ourresponsibility 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 otherwiseappears to be materiallymisstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation; weare required to report that fact. Wehave nothingto reportin this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone FinancialStatements

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 flowsand 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 andare free fr ommaterial misstatement, whetherdue to fraudor 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 liquidatethe Company or to cease operations, or has norealistic alternativebut to do so.

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

AuditorsResponsibilities for the Auditof theStandalone Financial Statements :

Our objectives are to obtain reasonable assurance about whether the Standalone 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 materialmisst atement whenit 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 thebasis of these Standalone Fi nancialStatements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism throughoutthe audit. Wealso:

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, orthe override of internalcontrol.

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 accountingestimates 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 continueas a goingconcern.

Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements representthe underlying transactions andevents ina mannerthat 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 theStandalone Financial Statements.

We communicatewith those chargedwith governance regarding, amongother matters, the planned scopeand timing of the audit and significant audit findings, including any significantdeficiencies in internalcontrol that weidentify 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 whereapplicable, 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 benefitsof such communication.

Reporton OtherLegal 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 specifiedin paragraphs 3 and 4 ofthe Order, to the extent applicable.

2. (A)As required by Section 143(3) of the Act, wereport that:

a) We have sought and obtained all the information and explanations, which to the bestof our knowledge and belief were necessaryfor the purposes of our audit ;

b) In our opinion, proper books of account as required by law have been kept by the Company sofar as it appearsfrom ou rexamination 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 inEquity dealt with bythis Report are in agreement with the book s of account; d) In our opinion, the aforesaid Standalone Financial Statements comply with the AccountingStandards specified under Section 133of the Act ;.

e) On the basis of the written representations received from the directors as on March 31, 2024, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 ourseparate Report in " AnnexureB ".

g) With respect to the other matters to be included in the Auditors Report in accordancewith Rule 11 ofthe Companies (Audit and Auditors) R ules, 2014, inour opinion and to the best of our information and according to the explanations given tous: i. The Company does not have any pending litigations which would impact its financialposition; ii. The Company did not have any long-term contracts including derivative contracts, for whichthere 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 endedMarch 31, 2024 . 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 behalfof the UltimateBeneficiarie s; (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, securityor 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 causedus to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain anymaterial misstatement . v. The company has not declared or paid any dividend during the year endedMarch 31, 2024 . 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, 2024 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 audittrail featurebeing tampered with.

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 directoris notin excess of the limitlaid down underSection 197 of the Act.

For Vandana V. Dodhia & Co.

Chartered Accountants Firm Regd. No. 117812W

CA Vandana V. Dodhia

Partner

Membership No. 104000 Place: Mumbai Date: 30-05-2024 UDIN: 24104000BKFJGN2477

ANNEXURE ATO 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, 2024.)

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

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

(B) The company does not have any intangible asset during the year hence reporting under clause3(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 coverall the items over a period of three yearswhich, 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 noticedon suchverification as informed toby 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 bythe company hencereporting under clause 3(i)(c) of theorder is not applicable.

d) The Company has not done 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 orderis not applicable.

b) The Company has not been sanctioned working capital limits in excess of Rs.5 crore, in aggregate, at any points 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 notapplicable.

(iii)

(a) The Company is involved in the Business of giving loans. Accordingly, the requirements underparagraph 3(iii)(a) of the Order arenot applicable to the Company.

(b) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that the terms and conditions in relation to investments made, guarantees provided, securities given and / or grant of all loans and advances in the nature of loans and guarantees are not prejudicial to the interest of the Company. (c) In respect of the [aforesaid] loans/ advances in nature of loan, the schedule of repayment of principal and payment of interest has been stipulated by the Company. The Company is a non-banking financial company engaged in the business of Loans lending. Further, except for the instances where there are delays or defaults in repayment of principal and/ or interest and in respect of which the Company has recognized necessary provisions in accordance with the principles of Indian Accounting Standards (Ind AS) and the guidelines issued by the Reserve Bank of India ("RBI") for Income Recognition and Asset Classification (which has been disclosed by the Company in Note 4 to the financial statements), the parties are repaying the principalamounts, as stipulated, and areal soregular in payment of interest, as applicable. (d) In respect of the loans/ advances in nature of loans, the total amount overdue for more than ninety days as at March 31, 2024 is 565.42 Lakhs. In such instances, in our opinion, based on informationan dex planations provided tous, reasonable steps havebeen takenby the Company for the recovery of the principal amounts and the interest thereon. Refer Note 36 (d) in the financial statements for details of number of cases and the amount of principal and interest overdueas atMarch 31, 2024. (e) The Company is involved in the Business of giving loans. Accordingly, the requirements underparagraph 3(iii)(e) of the Order arenot applicable to the Company.

(f) According to the information explanation provided to us, the Company has granted loans and / or advances in the nature of loans during the year. These are not repayable on demand / have not stipulated the schedule for repayment of principal and interest. Hence, the requirementsunder paragraph 3(iii)(f) of the Order arenot applicable to the Company.

(iv) According to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it. The Company being a nonbanking financial company, nothing contained in section 186, except sub-section (1), shall apply.

(v) According to the information and explanations given to us, the Company has not accepted any depositfrom the publicin accordance withthe provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Hence, reporting under clause 3(v)of the Order is notapplicable .

(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, exceptfor Income Tax Payable of Rs. 154.38 lakhs, 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, 2024 for a period of more thansix months from the date of becoming payable.

b) According to the information and explanation given to us except for Income Tax payable of Rs 43.58 lakhs, 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 of1961) .

(ix) (a) The Company has not taken any loans or other borrowings from any lender. Hence reportingunder clause 3(ix)(a) ofthe Order isnot applicable.

(b) The Company hasnot been declaredwilful defaulter by any bank or financial institution or governmentor any government authority.

(c) The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of the year and hence, reporting under clause 3(ix)(c) of the Order isnot applicable.

(d) The Company has not raised any funds on short term basis during the year and hence, reportingunder clause 3(ix)(d) of theOrder isnot applicable.

(e) On an overall examination of the financial statements of the Company, 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 and hence reporting on clause 3(ix)(f)of the Order is notapplicable .

(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 reportedduring 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, 2024, accordingly the provisions stated in paragraph (xi)(b) of the Order is not applicable to theCompany.

(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 notapplicable.

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

(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 withthe 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 dated22 ^ndSeptember, 1998.

(b) The company is already a registered NBFC company and hence reporting under clause 3(xvi)(b)of the Order is notapplicable.

(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) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and hence reporting under clause3( xvi)(d)of the Order isnot applicable.

(xvii) The company has incurred cash losses during the financial year of INR 23.23 lakhs covered by our audit. In the immediately preceding financial year the company has not incurred any cash loss. (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 notapplicable.

For Vandana V. Dodhia & Co.

Chartered Accountants Firm Regd. No. 117812W

CA Vandana V. Dodhia

Partner

Membership No. 104000 Place: Mumbai Date: 30-05-2024 UDIN: 24104000BKFJGN2477

ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls with reference to the aforesaid Standalone FinancialS tatements 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, 2024)

We have audited the internal financial controls over financial reporting of HASTI FINANCE LIMITED ("the Company") as of March 31, 2024 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 FinancialStatements

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.

OtherMatter

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 ofC ompanies (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, 2024, 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

CA Vandana V. Dodhia

Partner

Membership No. 104000

Place: Mumbai Date: 30-05-2024

UDIN:24104000BKFJGN2477