INDEPENDENT AUDITORS’ REPORT

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 (hereinafter
referred to as "the Company”), which comprise the Standalone
Balance Sheet as at March 31, 2023, the Standalone Statement
of Profit and Loss (including Other Comprehensive Income),
the Standalone Statement of Changes in Equity and Standalone
Cash Flow Statement for the year then ended, and notes to
the Standalone Financial Statements, including a summary
of the significant 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
accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2023 and its profit
including other comprehensive income, changes in equity and
its cash flows for the year then ended.

BASIS OF OPINION

We conducted our audit of the Standalone Financial Statements
in accordance with the Standards on Auditing ("the 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 ("the 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 thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis of our audit opinion on the
Standalone Financial Statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgement, 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 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. For each matter below, our
description of how our audit addressed the matter is provided
in that context.

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

INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITORS’ REPORT
THEREON

The Company's Management and Board of Directors are
responsible for the preparation of the other information.
The other information comprises the information included in the
Annual Report but does not include the Standalone Financial
Statements and our auditors' report thereon. The other

information is expected to be made available to us after the
date of this 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

identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated.

If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we
are required to report that fact.

RESPONSIBILITIES OF MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS.

The Company's Board of Directors and Management 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, other comprehensive
income, changes in equity and cash flows 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. 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 design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the Standalone Financial
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, Management
and Board of Directors are responsible for 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 to do so.

The Board of Directors are also responsible for overseeing the
Company's 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 Standards on Auditing 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 Standards on Auditing,
we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:

i. 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.

ii. Obtain an understanding of internal controls relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances. Under the 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.

iii. Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the Management.

iv. Conclude on the appropriateness of Management's 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 ability of the Company 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.

v. 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.

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

We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where
applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements
of the financial year ended March 31, 2023 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 MATTERS

The standalone financial statements of the Company for the
year ended March 31, 2022 were audited by the predecessor
Joint Auditors, M. P. Chitale and Co, and Gokhale & Sathe who
had expressed an unmodified opinion on those statements vide
their audit report dated May 18, 2022. The comparative financial
information of the Company for the year ended 31 March 2022
are based on those standalone financial statements.

Our opinion is not modified in respect of the above matter.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by the Companies (Auditor's 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 "Annexure A”, 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:

i. 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;

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

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

iv. In our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting
Standards specified under Section 133 of the Act;

v. On the basis of written representations 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

being appointed as a director in terms of Section
164(2) of the Act;

vi. With respect to the adequacy of the internal financial
controls with reference to Standalone Financial
Statements of the Company and the operating
effectiveness of such controls, refer to our separate
report in "Annexure B”;

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

a. The Company has disclosed the impact of
pending litigations on its financial position in its
Standalone Financial Statements - Refer Note
No. 41(a) to the Standalone Financial Statements.

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

c. There has been no delay in transferring
amounts, required to be transferred, to the
Investor, Education and Protection Fund
by the Company.

d. In respect of Rule 11(e) of the Companies (Audit
and Auditors) Rules, 2014,

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(ies), 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 on behalf of the Ultimate Beneficiaries.

b. The Management has represented that
to the best of its knowledge or belief, 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 Beneficiaries.

c. Based on such audit procedures that were
considered reasonable and appropriate in
the circumstances, nothing has come to
our notice that has caused us to believe
that the representations under sub clause
(i) and (ii) of Rule 11(e) as provided under
sub-clause (a) and (b) above contain any
material misstatement.

d. 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
Companies Act 2013 to the extent it
applies to payment of dividend. As stated
in Note No. 47 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.

3. Proviso to Rule 3(1) of the Companies (Accounts) Rules,
2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from
April 01, 2023, and accordingly, reporting under Rule 11(g)
of Companies (Audit and Auditors) Rules, 2014 is not
applicable for the financial year ended March 31, 2023.

4. In our opinion and to the best of our information and
according to the explanations given to us, the managerial
remuneration paid / provided by the Company to its
directors during the year is in accordance with the
provisions of Section 197 read with Schedule V of the Act.

For SGCO & Co. LLP For Khandelwal Jain & Co.

Chartered Accountants Chartered Accountants

Firm Registration Number: 112081W/W100184 Firm Registration Number: 105 049W

Suresh Murarka Bhupendra Karkhanis

Partner Partner

Membership Number: 044739 Membership Number: 108336

UDIN: 23044739BGUNNM3153 UDIN: 23108336BGQZOE7888

Mumbai, May 16, 2023 Mumbai, May 16, 2023