Muthoot Microfin Ltd Auditor Reports

Muthoot Microfin Limited

2-Type 2 compliance during the audit period and provided an interim bridge report for the period 1 October 2025 to 31 March 2026 confirming that no material changes to IT infrastructure occurred that would compromise its SOC compliance posture. During the audit period, the Company retained full LMS/LOS application-level and database-level logs and further enhanced log retrieval capabilities by implementing a SQL compliance monitoring tool on 1 February 2026 to capture database-level changes, including extraction of old and new values. Further, during the course of our audit, we did not come across any instance of the audit trail feature being tampered and where the audit trail feature was enabled, the same has been preserved by the Company in accordance with applicable statutory requirements for record retention.

(Referred to in paragraph 1 under the heading ‘Report on Other Legal and Regulatory Requirements of our report of even date)

I. In r espect of the Companys Property, Equipment and Intangible Assets: (a) (A) The Company has maintained proper records showing full particulars including quantitative details and situation of its Property, Plant and Equipment and relevant details of right of use assets. (B) The Company has maintained proper records showing full particulars of its Intangible assets. (b) The Company has a policy of conducting physical verification of property, plant, and equipment for each branch in a phased manner to ensure that the verification is completed within a 180-day cycle, and in our opinion, the same is reasonable having regard to the size of the Company and the nature of its business. Pursuant to the programme, certain Property, Plant and equipment have been physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification. (c) The Company does not have any immovable properties. Accordingly, reporting under clause 3(i) (c) of the Order is not applicable to the Company. (d) According to information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right of Use Assets) and intangible assets during the year. (e) According to information and explanations given to us and on the basis of our examination of the records of the Company, no proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

II. (a) The Company is a non-banking financial company (hereinafter referred to as "the NBFC") primarily engaged in investing and financing activities. Accordingly, it does not hold any inventories and hence, reporting under clause 3(ii)(a) of the Order is not applicable to the Company.

(b) According to information and explanations given to us, the Company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate at any point of time, from banks or financial institutions on the basis of security of current assets. Accordingly, reporting under clause 3(ii)(b) of the Order is not applicable to the Company: and III. The Company is a non-deposit taking non-banking financial company ("NBFC") registered with the Reserve Bank of India ("RBI").

During the year, the Company has not provided guarantee/security to companies, firms, limited liability partnerships and other parties. During the year, in the ordinary course of its business, the Company has made investments, granted loans and advances in the nature of loans, unsecured, to companies, firms, limited liability partnerships and other parties. With respect to such investments, guarantees/security and loans and advances: (a) The Company is a NBFC whose principal business is to give loans. Accordingly, reporting under clause 3(iii)(a) of the Order is not applicable to the Company. (b) According to information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the investments made and terms and conditions of the loans given and advances in the nature of loans are in the normal course of business, prima facie are not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the schedule of repayment of principal and interest has been stipulated and the receipts of principal and interests are generally regular wherever due; except there were cases which were not repaid/paid when they were due or were repaid/paid with a delay. Such loans have been accounted for in accordance with the Companys policy on asset classification and provisioning as described in note 1 (viii) and (xi) to the financial statements Having regard to the voluminous nature of loan transactions, it is not practicable to furnish party-wise details of irregularities in this report. However, such details are available with the Company. For details of total loans and advances which were overdue as of March 31, 2026 refer note 45 A.7.2 to the financial statements (d) The Company, being a NBFC, registered under provisions of RBI Act, 1934 and rules made thereunder, in pursuance of its compliance with provisions of the said Act/Rules, particularly, the Income Recognition, Asset Classification and Provisioning Norms, monitors and report, total amount overdue including principal and/or payment of interest by its customers for more than 90 days. In cases where repayment of principal and payment of interest is not received as stipulated, the cognizance thereof is taken by the Company in course of its periodic regulatory reporting. Refer note 45 A.7.2 to the financial statements for summarised details of such loans/advances which are not repaid by borrowers as per stipulations. According to the information and explanations made available to us, reasonable steps are taken by the Company for recovery thereof.

(e) The Company is a NBFC whose principal business is to give loans. Accordingly, reporting under clause 3(iii)(e) of the Order is not applicable to the Company. (f) According to information and explanations given to us and based on the audit procedures performed, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year. Accordingly, reporting under clause 3(iii)(f) of the Order is not applicable to the Company. IV. In our opinion and according to information and explanations given to us and based on the audit procedures performed, the Company has not given loan to any director in accordance with the provisions of Section 185 of the Companies Act, 2013. The Company has not given any loans or guarantees and being a Non-banking financial company, due to which its investments are exempted under Section 186(11) (b), Accordingly, reporting under clause 3(iv) of the Order is not applicable. V. Accor ding to the information and explanations to us, the Company has not accepted any deposits or amounts which are deemed to be deposits within the meaning of provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.

VI. The Company is a NBFC whose principal business is to give loans and Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, in respect of the services rendered by the Company. Accordingly, reporting under clause 3(vi) of the Order is not applicable to the Company.

VII. Accor ding to the information and explanations us, in respect of statutory dues: a. The Company is regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, goods and services tax, duty of customs, cess and any other statutory dues as applicable to the appropriate authorities. There are no arrears of undisputed amounts payable in respect of aforesaid statutory dues as on the last day of the financial year for a period of more than six months from the date they became payable; and b. There are no dues referred in sub clause (a) which have not been deposited with the appropriate authorities on account of any dispute as on 31 March 2026.

VIII. Accor ding to the information and explanations given us, no transactions relating to previously unrecorded income were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Accordingly, reporting under clause 3(viii) of the Order is not applicable to the Company.

IX. Accor ding to the information and explanations given us, in respect of borrowings: (a) The Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) The Company has not been declared willful defaulter by any bank or financial institution or other lender. (c) T erm loans availed by the Company were, applied by the Company during the year for the purposes for which the loans were obtained.

(d) On an overall examination of the financial statements of the Company, no funds raised on short-term basis have been prima facie used for long-term purposes during the year by the Company.

(e) The Company does not have subsidiary, associate, or joint venture. Accordingly, reporting under clause 3(ix)(e) of the Order is not applicable to the Company. (f) The Company does not have subsidiary, associate, or joint venture. Accordingly, reporting under clause given 3(ix)(f) of the Order is not applicable.

X. (a) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year and hence, reporting under clause (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 convertible debentures (fully, partially or optionally convertible) during the year and hence, reporting under clause (x)(b) of the Order is not applicable to the Company.

XI. (a) Except for cases aggregating to Rs. 29.28 given to Million which largely pertains to cheating, forgery, misappropriation and criminal breach of trust, we have neither come across any instance of fraud by the Company or any material instance of fraud on the Company by its officers or employees, noticed or reported.

(b) No report under Section 143(12) of the Act in the Form ADT - 4, as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 (as amended from time to time) has been filed with the Central Government for the period covered by our audit. Accordingly, reporting under clause (xi)(b) of the Order is not applicable to the Company

(c) According to the information and explanations given to us and based on our examination of the books of account of the Company, no whistle blower complaints have been received during the year by the Company. XII. Accor ding to the information and explanations us, the Company is not a Nidhi Company. Accordingly, reporting under clause 3(xii) of the Order is not applicable to the Company.

XIII. Accor ding to the information and explanations to us and based on our examination of the records of the Company, transactions with related parties are in compliance with Section 188 and 177 of the Act, and details of such related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

XIV. (a) Based on the information and explanations given to us and our audit procedures, the Company has an adequate internal audit system commensurate with the size and the nature of its business; and (b) We have considered, the internal audit reports issued to the Company during the year and covering the period upto 31 March 2026 in determining the nature, timing and extent of our audit procedures in accordance with the guidance provided in SA 610 "Using the work of Internal Auditors".

XV. Accor ding to the information and explanations us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with its directors or persons connected with them during the year. Accordingly, reporting under clause 3(xv) of the Order is not applicable to the Company. XVI. (a) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and the Company has obtained the required registration.

(b) Based on our audit procedures and according to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities without obtaining a valid CoR from the Reserve Bank of India as per the Reserve Bank of India Act, 1934. (c) According to the information and explanations given to us, the Company is not a Core Investment Company (‘CIC) as defined under the Regulations by the Reserve Bank of India. Accordingly, reporting under clause 3(xvi)(c) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly, the reporting under clause 3(xvi) of the Order is not applicable to the Company.

XVII. Accor ding to the information and explanations given to us, the Company has not incurred any cash losses in the financial year and in the immediately preceding financial given toyear. XVIII. Ther e has been no resignation by the statutory auditor of the Company during the year. Accordingly, clause 3(xviii) of the Order is not applicable to the Company. givenXIX. Accor ding to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the given to balance sheet date, will get discharged by the Company as and when they fall due.

XX. (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Companies Act, 2013 (the "Act"), in compliance with second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in note 36.1 to the financial statements. (b) In respect of ongoing projects, there are no unspent amounts that are required to be transferred to a special account in compliance with provision of sub section (6) of section 135 of the said Act. This matter has been disclosed in note 36.1 to the financial statements.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Muthoot Microfin Limited ("the Company") as of 31 March 2026 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (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 the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting. 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 were 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisation of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to further periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2026, 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.