LIC Housing Finance Ltd Auditor Reports

To

The Members of

LIC Housing Finance Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of LIC Housing Finance Limited (“the Company”), which comprise the standalone balance sheet as at March 31, 2026, the standalone statement of profit and loss including other comprehensive income, the standalone statement of cash flow and the standalone statement of changes in equity for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information (hereinafter 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, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended (“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 (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, its profit and other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under sub-section (10) of Section 143 of

the Act. 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 (ICAI) 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

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 for the financial year ended March 31, 2026. 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.

We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.

Assessment of impairment loss allowance based on expected credit loss (ECL) on Loans and Advances (Also refer Note 3.13.i Use of estimates and judgements and 36.4.2 Credit Risk to the standalone financial statements)
Impairment of loans and advances, including off-balance sheet elements Charge: (330.38) Crores for year ended March 31, 2026 Provision: 4,568.63 Crores as on March 31, 2026
Subjective estimate - Expected Credit Loss (ECL) under Ind AS 109	Our audit procedures included the following:
Under Ind AS 109, Financial Instruments, the Company recognises impairment allowances on loans and advances using the Expected Credit Loss (ECL) model. The ECL represents a probability-weighted estimate of credit losses over the expected life of a financial instrument and incorporates reasonable and supportable information, including historical default and loss experience, current conditions and forwardlooking macroeconomic information.	Understanding of the process and testing of controls
The estimation of ECL involves significant management judgement and estimation uncertainty. The key areas where we identified increased levels of management judgement, and consequently greater audit focus, are as follows:	• We obtained an understanding of the Companys impairment methodology, accounting policies and governance framework for Expected Credit Loss (ECL) and assessed their compliance with the requirements of Ind AS 109 and the applicable Reserve Bank of India (RBI) guidelines.
• Data inputs - The application of the ECL model requires the use of large volumes of data from multiple sources. This increases the risk relating to the completeness, accuracy and appropriateness of the data used in developing the assumptions underlying the ECL model.	• We evaluated the design and tested the operating effectiveness of key controls over the ECL process, including controls relating to data extraction and validation, model governance, approval of key assumptions and review of the impairment allowance.
• Loan staging and credit risk assessment - Significant judgement is applied in determining whether there has been a significant increase in credit risk since initial recognition and in classifying financial assets into the appropriate stage under the ECL framework. This assessment considers various qualitative and quantitative factors, including borrower characteristics, internal credit risk ratings, repayment behaviour, remaining tenor, collateral valuations, expected recovery timelines, industry outlook and other relevant information.	• We tested controls over the completeness and accuracy of data used in the ECL models, including controls over system-generated reports used in determining default status, ageing and other credit risk indicators.
• Model estimations - The estimation of ECL involves the use of inherently judgmental models to determine the key inputs, namely Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD). Among these, PD and LGD are the primary drivers of estimation complexity and represent the most significant areas of judgement in the Companys ECL modelling approach.	• We tested controls over the identification of significant increase in credit risk (SICR), staging of financial assets and timely recognition of impairment.
• Economic scenarios - Ind AS 109 requires ECL to be measured on an unbiased, probability-weighted basis by incorporating a range of possible future economic scenarios. Significant management judgement is applied in selecting forward-looking macroeconomic assumptions, developing alternative economic scenarios and assigning probability weightings to those scenarios, particularly in light of uncertainties arising from geopolitical developments, inflationary pressures and the prevailing economic environment.	• We tested controls over the selection of forward-looking macroeconomic variables, development of economic scenarios and application of probability weightings used in estimating ECL.
• Post-model adjustments (management overlays) - Where considered necessary, management applies post-model adjustments (management overlays) to reflect risks and uncertainties that are not adequately captured by the underlying ECL models. The determination of such adjustments involves significant judgement and estimates.	• We evaluated controls over the identification, approval, calculation and review of post-model adjustments (management overlays), where applicable.
• Assessment of project finance exposures - For project finance exposures, additional judgement is exercised in assessing expected credit losses based on factors such as the borrowers financial performance, solvency, liquidity, project execution status and industry outlook.	Substantive audit procedures
The combined effect of these judgements results in a high degree of estimation uncertainty in measuring impairment allowances on loans and advances, including off-balance sheet credit exposures. Consequently, there is a potential range of reasonable outcomes that could materially affect the impairment allowance recognised in the standalone financial statements. Refer to Note 36.4.2 to the standalone financial statements for details of the Companys credit risk management framework and the Expected Credit Loss allowance recognised.	• We tested the completeness of loans and advances, including off-balance sheet credit exposures, included in the ECL computation by reconciling them to the underlying accounting records and loan reports.
Disclosures	• On a sample basis, we tested the completeness, accuracy and relevance of key data inputs used in the ECL models by agreeing the data to the underlying books, loan documentation and other supporting records.
The disclosures relating to the Companys application of Ind AS 109 are significant in explaining the judgements, assumptions and estimation techniques applied in determining the Expected Credit Loss allowance. In addition, disclosures required under the applicable RBI regulations relating to non-performing assets and provisioning involve significant judgement and estimation and were therefore an area of audit focus.	• We tested samples of financial assets classified in Stages 1, 2 and 3 to assess whether they had been appropriately staged in accordance with the requirements of Ind AS 109. This included evaluating whether indicators of significant increase in credit risk had been appropriately identified and whether the resulting stage allocation was appropriate.
Considering the significant management judgement involved in estimating the Expected Credit Loss allowance and the materiality of the related impairment provision to the standalone financial statements, we determined this matter to be a Key Audit Matter for the current years audit.	• We evaluated the reasonableness of assumptions and estimates used in determining Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) by considering historical performance, observed default experience, recovery trends, collateral information, available external information and other corroborative evidence, where appropriate.
	• We assessed the reasonableness of managements forward-looking macroeconomic assumptions, economic scenarios and probability weightings used in estimating ECL.
	• Where management overlays were recognised, we evaluated the rationale, supporting evidence, methodology and consistency of their application to determine whether they appropriately reflected risks not captured by the underlying ECL models.
	• For selected project finance exposures, we assessed managements impairment evaluation by examining borrower-specific information, including financial performance, solvency, liquidity, project execution status, collateral values, repayment capacity and industry outlook.
	Assessing disclosures
	• We assessed whether the disclosures in the standalone financial statements appropriately describe the Companys application of the Expected Credit Loss methodology, significant judgements and assumptions applied, estimation uncertainty involved and the related impairment allowances recognised, in accordance with the requirements of Ind AS 109 and applicable RBI regulations.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the consolidated financial statements, standalone financial statements and our auditors report thereon. The Annual Report is expected to be made available to us after the date of auditors report.

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 during the course of our 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 Board of Directors for the Standalone Financial Statements

The Companys Management and Board of Directors are responsible for the matters stated in sub-section (5) of Section 134 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 Ind AS. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors Responsibilities for the Audit of the Standalone 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 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 controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under clause (i) of sub-section (3) of Section 143 of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to these standalone financial statements 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 management and Board of Directors 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 financial controls 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 for the financial year ended March 31, 2026, and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

The standalone financial statements of the company for the year ended March 31,2025 were audited by previous joint auditors under the Act who, vide their joint audit report dated May 15,2025, expressed an unmodified opinion on those standalone financial statements.

Our opinion on the standalone financial Statements is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by sub-section (3) of Section 143 of the Act,

we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

c. The standalone balance sheet, the standalone statement of profit and loss including other comprehensive income, the standalone statement of cash flow and the standalone statement of changes in equity dealt with by this report are in agreement with the relevant books of account.

d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act.

e. On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms of sub-section (2) of Section 164 of the Act.

f. With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure B” wherein we have expressed an unmodified opinion.

g. In our opinion, the managerial remuneration for the year ended March 31, 2026 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act.

h. With respect to the other matters to be included in the Auditors Report in accordance with Rule (11) of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer note 38 to the standalone financial statements;

ii. The Company has made a provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the

Investor Education and Protection Fund

by the Company.

iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(es), 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 to or on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(es), 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 Parties (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures performed 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 (a) and

(b), contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in note 40 to the standalone financial statements, the Board of Directors of the Company has proposed dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination which included test checks, the Company has used accounting software systems for maintaining its books of account for the financial year ended March 31, 2026 which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software systems. Further, during the course of our audit, we did not come across any instance of the audit trail feature being tampered with and, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

ANNEXURE A

TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of LIC Housing Finance Limited of even date (

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

(i) (a) (A) The Company has maintained proper records

showing full particulars, including quantitative details and situation of property, plant and equipment (including right of use assets).

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

(b) The Company has a regular programme of physical verification of its property, plant and equipment under which property, plant and equipment are required to be verified annually. 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 program, certain property, plant and equipment were physically verified by the management during the year. No material discrepancies were noticed on such verification during the year.

(c) The title deeds of immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements are duly executed in favour of the lessee) as disclosed in the note 12.1 to the standalone financial statements included in property, plant and equipment are held in the name of the Company.

(d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the year.

(e) There are no proceedings initiated or are pending against the Company for holding benami property under the Prohibition of Benami Property Transaction Act, 1988 and Rules made thereunder.

(ii) (a) The Company is a Housing Finance Company

engaged in the business of granting loans. Accordingly, it does not hold any physical inventories. Accordingly, reporting under clause 3 (ii) (a) of the Order is not applicable to the Company.

(b) During the year, the Company has been sanctioned working capital limits in excess of 5 Crores in aggregate by banks or financial institutions. However, such loans are either unsecured or

secured by way of negative lien over assets of the Company. Accordingly, reporting under clause 3 (ii) (b) of the Order is not applicable to the Company.

(iii) (a) The Company is a Housing Finance Company engaged in the business of granting loans. Accordingly, reporting under clause 3 (iii) (a) of the Order is not applicable to the Company.

(b) The company is a Housing Finance Company engaged in the business of granting loans, the terms and conditions of the grant of such loans/ advances and investment made during the year, in our opinion prima facie are not prejudicial to the companys interest. During the year, the Company has not provided securities or guarantee or granted advances in the nature of loans to companies, firms, limited liability partnerships or any other parties.

(c) In respect of the aforesaid loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated by the Company and the repayments or receipts are generally regular. However, there have been certain instances of delays/defaults in repayment of principal and/or payment of interest by the borrowers.

Considering that the Company is a Housing Finance Company engaged in the business of granting housing loans and loans against property to individual customers and providing builder finance and corporate finance to non-individual customers, it is not practicable to furnish borrower-wise details of the amount overdue, due dates and extent of delay/default, as suggested in the Guidance Note on the Companies (Auditors Report) Order, 2020 issued by the Institute of Chartered Accountants of India, having regard to the voluminous nature of transactions undertaken in the ordinary course of business.

The aggregate details of such overdue balances, including the related asset classification and provisioning thereagainst, are disclosed in Note 7, Note 36.4.2 and Note 48A15 to the standalone financial statements. The Company has recognised provisions, wherever required, in accordance with the prudential norms relating to Income Recognition, Asset Classification and Provisioning issued by the Reserve Bank of India and the applicable Indian Accounting Standards (Ind AS). Except for such instances of delays/defaults referred to above, the borrowers are generally regular in repayment of principal and payment of interest in accordance with the stipulated terms.

(d) There is no overdue amount for more than ninety days in respect of loans given except total amount of 3,774.31 crores overdue for more than ninety days as at March 31, 2026. In our opinion, reasonable steps have been taken by the Company for recovery of the principal and interest. Further, the Company has not given any advance in the nature of loan to any party during the year.

(e) The Company is a Housing Finance Company with its principal business of giving loans. Accordingly, reporting under clause 3 (iii) (e) of the Order is not applicable to the Company.

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

(iv) The Company has complied with the provisions of Section 185 of the Act in respect of the loans granted by it. The Company has not provided any guarantee or security as specified under Section 185 of the Act. In respect of the investments made by the Company, the provisions of sub-section (1) of Section 186 of the Act have been complied with. Further, the Company, being a Housing Finance Company registered with the National Housing Bank, is exempt from compliance with the remaining provisions of Section 186 of the Act. Accordingly, the remaining provisions of Section 186 are not applicable to the Company.

(v) The Company is a Housing Finance Company registered with the National Housing Bank (NHB). The provisions of Sections 73 to 76 and other relevant provisions of

the Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended, are not applicable to the Company. The Company has complied with the applicable directions issued by the Reserve Bank of India/National Housing Bank relating to acceptance of public deposits. Further, no order has been passed by the National Housing Bank, Reserve Bank of India, any Court or any other Tribunal in respect of the aforesaid matters.

(vi) The Central Government has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for the services rendered by the Company. Accordingly, reporting under clause 3 (vi) of the Order is not applicable to the Company.

(vii) (a) The Company is generally regular in depositing with

appropriate authorities undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it. No undisputed amounts payable in respect of these statutory dues were outstanding as at March 31,2026, for a period of more than six months from the date they became payable.

(b) The dues of goods and services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues have not been deposited on account of any dispute, are as follows:

Nature of the statute	Nature of dues	Forum where Dispute is Pending	Period to which the Amount Relates	Disputed Amount Crore	Amount Not deposited Crore
Income Tax Act,	Income Tax	ITAT (Appeals)	AY 2018-19	16.95	5.05
1961		CIT(Appeals)	AY 2018-19	4.88	4.88
Goods and Service	Goods &	Additional Commissioner	FY 2018-19	1.55	1.55
Tax, 2017	Services Tax	Assistant Commissioner	FY 2018-19	0.16	0.16
		Assistant Commissioner	FY 2019-20	0.21	0.21
		Deputy Commissioner	FY 2020-21	3.56	3.56
		Commercial Tax Officer,Excise and Taxation Officer	FY 2020-21	0.36	0.36
		Assistant Commissioner	FY 2020-21	0.66	0.66
		Deputy Commissioner	FY 2021-22	1.14	1.14
		Deputy Commissioner	FY 2022-23	0.95	0.95
		Deputy Commissioner	FY 2018-19	0.13	0.13
		Deputy Commissioner	FY 2019-20	0.08	0.08
		Assistant Commissioner	FY 2021-22	0.03	0.03

(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) (a) The Company has not defaulted

in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender.

(c) The term loans obtained during the year have been applied by the Company for the purposes for which they were obtained, other than temporary deployment of such funds pending application for the intended purposes.

(d) No funds raised on short-term basis have been used for long term purposes by the Company.

(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or associates. The Company does not have any joint venture (as defined under the Act) during the year ended March 31, 2026. Accordingly, reporting under clause 3 (ix) (e) of the Order is not applicable to the Company.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries or associates. The Company does not have any joint venture (as defined under the Act) during the year ended March 31, 2026. Accordingly, reporting under clause 3

(ix) (f) of the Order is not applicable to the Company.

(x) (a) The Company has not raised any money

by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the reporting under clause 3 (x) (a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, 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, we have not noticed any fraud by the Company during the year, nor have we been informed of any such instance by the management. Further, there have been instances of frauds committed by borrowers/other parties on the Company amounting to 9.75 Crores during the year, which have been identified by the Company and disclosed in Note 49.3 to the standalone financial statements.

(b) 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, a report under sub-clause (12) of Section 143 of the Act, in Form ADT-4, was not required to be filed. Accordingly, reporting under clause 3 (xi) (b) of the Order is not applicable to the Company.

(c) 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, and as represented to us by the management, no whistle-blower complaints have been received during the year by the Company. Accordingly, reporting under clause 3 (xi) (c) of the Order is not applicable to the Company.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, reporting under clause 3 (xii) of the Order is not applicable to the Company.

(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in the notes to the standalone financial statements, as required by the applicable accounting standards.

(xiv) (a) The Company has an internal audit

system commensurate with the size and nature of its business.

(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit, have been considered by us.

(xv) As represented to us by the Management, the Company has not entered into any non-cash transactions with Directors or persons connected with him. Accordingly, reporting under clause 3 (xv) of the Order is not applicable to the Company.

(xvi) (a) The Company is a Housing Finance

Company and holds a valid Certificate of Registration under Section 29A of the National Housing Bank Act, 1987. Accordingly, in terms of the Master Direction - Exemptions from the Provisions of the Reserve Bank of India Act, 1934 dated August 25, 2016, as amended, the Company is not required to obtain registration under Section 45-IA of the Reserve Bank of India Act, 1934.

(b) Based on our examination of the records of the Company and according to the information and explanations given to us, the Company has not conducted any Housing Finance activities during the year without a valid Certificate of Registration.

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

(d) As represented to us by the Management, as at March 31, 2026 as per the definition of Group under Core Investment Companies (Reserve Bank) Directions 2016, there is no Core Investment Company (CIC) which is registered with the Reserve Bank of India, forming part of the promoter group.

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

(xviii) There has been no resignation of the statutory auditors during the year and accordingly,

reporting under clause (xviii) is not applicable to the Company.

(xix) On the basis of the financial ratios of the financial statements, ageing and expected dates of realisation of financial assets and payment of financial liabilities, 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 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 it should not be construed as a guarantee or 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) (a) There are no unspent amounts towards

Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act.

(b) In respect of ongoing projects, the Company has transferred the remaining unspent amount to a Special Account in compliance with the provisions of sub-section (6) of section 135 of the Act

(xxi) The reporting under paragraph 3 (xxi) of the Order is not applicable in respect of audit of Standalone Financial Statements. Accordingly, no comment in respect of the said clause has been included in this report.

ANNEXURE B

TO THE INDEPENDENT AUDITORS REPORT

Report on the internal financial controls under Clause (i) of sub-section (3) of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to these standalone financial statements of LIC Housing Finance Limited (“the Company”) as of March 31, 2026, 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 Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (“the Guidance Note”) issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to these standalone financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note issued by the ICAI and the Standards on Auditing as specified under sub-section (10) of Section 143 of the Act, to the extent applicable to an audit of internal financial controls both issued by the ICAI. 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 reporting with reference to these standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to these standalone financial statements included obtaining an understanding of internal financial controls with reference to these standalone 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 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 with reference to these standalone financial statements.

Meaning of Internal Financial Controls with reference to these Standalone Financial Statements

A Companys internal financial control with reference to these 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 control with reference to these standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of 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 Reporting with reference to these Standalone Financial Statements

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

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls with reference to these standalone financial statements and such internal financial controls with reference to these standalone financial

statements were operating effectively as at March 31, 2026, based on the internal financial controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For SHAH GUPTA & CO.,	For BATLIBOI & PUROHIT
Chartered Accountants	Chartered Accountants
Firm Registration No.: 109574W	Firm Registration No.: 101048W
Heneel K Patel	Parag Hangekar
Partner	Partner
M. No. 114103	M. No. 110096
UDIN: 26114103VTZGUT1658	UDIN: 26110096LZVOJQ2199
Place: Mumbai	Place: Mumbai
Date: May 13, 2026	Date: May 13, 2026