Edelweiss Financial Services Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the ac-companymg standalone financial statements of Edelweiss Financial Services Limited ("the Company ), which comprise the Balance Sheet os at March 31 2023, the Statement of Profit and Loss, including the statement of Othc-r Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

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 (‘‘he Act') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, ot the state ot affairs of the Company as at March 31,2023, its profit including 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), as specified undersection 143( 10) of the Act. Our responsibilities under those Standards are further described in th e 'Auditor's 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 tG our audit of the financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropnate 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, 2023 These matters were addressed in the context of our audit ot the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters For each matter below, our description ot now our audit addressed the matter is provided in that context

We have determined the matters descnbed below to be the key audit matters to be communicated in our report We have fulfilled the responsibilities described in the Auditor s 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 ot the standalone financial statements The results of our audit procedures, including the procedures performed to address the matters below, provide the Dasis for our audit opinion on the accompanying standalone financial statements

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information The other information comprises the information included in the Board report, but does not include the standalone financial statements and our auditor's report thereon which we obtained prior to the date of this auditors report, arid the Annual report, which is expected to me made available to us after that date.

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 such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed we conclude that there is a material misstatement of this other information, we are required to report that fact We have nothing to report in this regard.

When we read the Board report if we conclude that there is a material misstatement therein, we ate required to communicate the matter to those charged with governance.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 154(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended This responsibility also includes maintenance of adequate accounting records In accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other Irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and the design Implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from matenal misstatement, whether due to fraud or error

In preparing the standalone financial statements, management is responsible far assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but tD do so

Those Board af Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor's 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 tree from matenal misstatement, whether due to fraud or error and to issue an auditor's 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 matenal 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 pan 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 matenal 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 appropnate to provide a basis for our opinion The risk of not delecting a matenal 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 intEmal control relevant to the audit in order to design audit procedures that are appropriate m 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 with reference to 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 management

• Conclude on the appropriateness of management's use of the going concern basis of accounting and. based an the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's abifity to continue as a going concern If we conclude that a matenal uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures m the financial statements or if such disclosures are •inadequate, to modify our opinion. Oui conclusions are based on the audit evidence obtained up to the date of our auditor s 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 ir. a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audiL

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, 2023 and are therefore the key audit matters. We describe these matters in our auditor s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public Interest benefits of such communication

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order, 202Q ("the Order'), issued by the Central Government of India in terms of sub-section 111) of section 143 of the Act, we give in the 'Annexure V' a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) 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 Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement arvd Statement of Changes in Equity dealt with by this Report are in agreement with the bGoks of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act. read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the confirmation received from the directors as on March 31. 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31. 2023 from bc-mg appointed as a director in terms of Section 164 (2) of the Act

(0 With respect to the adequacy of the interna! financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in 'Annexure 2“ to this report

ig) In our opinion the managenal remuneration for the year ended March 31. 2023 has been paid / provided by the Company to ns 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 Auditor s 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 rts financial position in its standalone financial statements - (Refer Note 32(1 ){a) and (b) to the standalone financial statements);

il. The Company lias made provision as required under the applicable law or accounting standards, for material foreseeable losses, if any. on long-term contracts including derivative contracts - (Refer Note 68 to the standalone financial statements),

hi 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, other than as disclosed irt the note 51 (A) to the standalone financial statements, nG funds have been advanced or loaned or invested (e/ther from borrowed funds or share premium or any other sources or kind of funds) bv the Company to or in any other person(s) or entityfies), including foreign entities ("Intermediaries^-1) with the understanding, whether recoided in writing or otherwise, that the Intermediary shall, whether; directiy or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate 3eneficianes") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

b) The management has represented that, to the best of its knowledge and belief other than as disclosed in the note 51 (B) to the standalone financial statements no funds have been received by the Company from any person(s) or entity(ies) including foreign entities (‘Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficianes; and

c) Based on such 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 125 of the Act to the extent it applies to payment of dividend

The intenm dividend declared and paid by the Company during the year 3nd until the date of this audit report is m accordonce with section 123 of the Act

As stated in note 55 to the standalone financial statements, the Board of Directors of the Company have proposed final 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. As proviso ro Rule 3(1) of the Companies (Accounts) Rules. 2014 is applicable for the Company only w.e.f. April 1. 2023, reporting under this clause is not applicable.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number. 301003E/E300005

por Shrawan Jalan

Partner

Membership Number 102102

UDIN: 23102102BGXJET6638

Place of Signature: Mumba.i

Date: May 26. 2023