Your Directors are pleased to present the Thirty Sixth Annual
Report together with the Audited Financial Statements
(Standalone and Consolidated) for the year ended 31^st March,
2025 of LIC Housing Finance Limited (‘the Company’).

FINANCIAL HIGHLIGHTS

The above figures are extracted from the financial statements
prepared in accordance with Indian Accounting Standards
(“Ind AS”) as notified under Sections 129 and 133 of the
Companies Act, 2013 (“the Act”) read with the Companies
(Accounts) Rules, 2014 and other relevant provisions of the
Act. The detailed Financial Statements as stated above are
presented as separate section of this Annual Report.

APPROPRIATION
Transfer to Reserves:

The Company has transferred an amount of ' 1,299.99 crore to
Special Reserve pursuant to the requirements u/s 36(1)(viii) of
the Income-tax, Act, 1961 excluding the transfer of ' 0.01 crore
to the Statutory Reserve maintained u/s 29C of NHB Act and an
amount of ' 1,000 crore transferred to General Reserves.

Hence, the total amount transferred to special reserve is ' 1,300
crore (including ' 0.01 crore to Statutory Reserve u/s 29C of
NHB Act) and ' 1,000 crore to General Reserves.

DIVIDEND:

The Company has formulated a robust Dividend Distribution
Policy in accordance with the requirements of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (hereinafter
"the Listing Regulations") This policy aims to ensure prudent
decision-making regarding dividend allocation to shareholders.
It strikes a balance by earmarking adequate funds for the
Company's growth and long-term objectives while judiciously
distributing dividends. Before recommending dividends to the
Members of the Company, the Board of Directors meticulously
considers various parameters.

Performance and Dividend Recommendation for
FY 2024-25:

During the financial year 2024-2025, the Company's Board of
Directors evaluated its performance. Balancing prudence with
capital conservation, the Board aimed to meet shareholders'
expectations. Taking into account the Dividend Distribution Policy
and RBI Circular No. DOR.ACC.REC.No.23/21.02.067/2021-22
dated 24^th June, 2021, the Board has recommended a dividend
payment of ' 10 (Rupees Ten Only) per equity share with a face
value of ' 2/- per share for the financial year ended 31^st March,
2025 i.e. at the rate of 500%. The total dividend outgo, if
approved by shareholders at the 36^th Annual General Meeting,
would be ' 550.06 crore which will result in additional outgo
of ' 55 crore as compared to the payout for the previous year.
The final dividend is subject to approval by the Members of the
Company at the ensuing Annual General Meeting.

The dividend if declared by the Company for the financial
year ended 31^st March, 2025 would be in compliance with the
Dividend Distribution Policy of the Company. The Dividend
Distribution Policy is available on the website of the Company at
https://cdn.lichousing.com/2025/01/DIVIDEND-DISTRIBUTIO
N-POLICY-2Q21.pdf

CHANGE IN NATURE OF BUSINESS

During the year under review, there has been no change in the
nature of the Company's business.

INDIAN ACCOUNTING STANDARDS

The Company has complied with the applicable Indian
Accounting Standards (Ind AS) as notified by the Ministry of
Corporate Affairs under Section 133 of the Companies Act, 2013.
The financial statements for the year have been prepared in
accordance with Schedule III to the Companies Act, 2013.

PERFORMANCE
Income and profit

The Company earned a total revenue of ' 28,056.22 crore
for the FY 2024-25 as compared to ' 27,234.64 crore in the
FY 2023-24, registering an increase of 3.02% percent, as
compared to previous year. Profit before tax and after tax for
FY 2024-25 on standalone basis stood at ' 6,855.81 crore and
' 5,429.02 crore respectively as against ' 6,053.92 crore and
' 4,765.41 respectively, for the previous year. The increase in the

profit before and after tax during the FY 2024-25 is attributable
to reduction in Expected Credit Loss ("ECL") charge for the year.

Lending operations

The Company is a Housing Finance Company registered
with National Housing Bank (NHB) and is mainly engaged in
financing purchase / construction of residential flats / houses
to individuals and project finance to developers, Loan against
Property (LAP), Lease Rental Discounting (LRD) etc. All other
activities revolve around the main business of the Company.

As at 31^st March, 2025 the loan book accounted for 85.00 per
cent of Individual Housing Loans, 10.35 per cent of Non-Housing
Loans to Individuals (NHI), 1.66 per cent of Non-Housing Loans to
Corporates & 2.99 per cent of project portfolio. (As per IND-AS).

LIC Housing Finance Ltd. offers a diversified portfolio of financial
products catering to a broad customer base. The Individual
Home Loan segment remains the primary contributor, forming
over 85% of the total loan portfolio and serving both salaried
and self-employed individuals. The Company also extends Loan
Against Property (LAP), Non-Housing Individual Loans, and
Project Loans under its non-core offerings. During the year, the
Company introduced the Affordable Housing Finance segment
to tap into the underpenetrated low-income housing market.
While currently at a nascent stage, this segment is expected to
contribute meaningfully over the medium term, especially as
operations expand in Tier 2 and Tier 3 cities.

Detailed information on the lending operations is provided in
the Management Discussion and Analysis.

Marketing and Distribution

During the year under review, focus was on optimisation of the
marketing offices and further strengthening the distribution
network. The distribution network of the Company consists
of 307 Marketing Offices and Customer Service Points.
The distribution network also includes 45 offices of LICHFL
Financial Services Ltd., wholly-owned subsidiary company
engaged in distribution of various financial products including
housing loan. The Company has representative office in Dubai.

As part of our digital transformation journey under Project RED,
LIC Housing Finance Ltd. collaborated with LeadSquared to
simplify and strengthen the home loan journey for our customers.
This partnership helped us overcome key operational challenges
such as identifying lead sources, preventing lead leakage,
providing complete visibility of lead status to all stakeholders,
eliminating manual distribution, and breaking down data silos.
A major milestone was the integration with our Loan Origination
System (PLF), enabling real-time tracking of business
volumes and conversion ratios. Customers also benefited
from instant updates through SMS and WhatsApp, ensuring
greater transparency and a smoother onboarding experience.
Through this initiative, we have generated business worth
' 835 crore from leads, while ensuring cost efficiency by paying
only a 0.25% commission to marketing intermediaries (MIs).

Enhancing Customer Support through Dedicated Call
Center Services:

Your Company is pleased to inform members about a significant
step taken in our commitment to service excellence — the
establishment of customer care executives to enhance our
customer support and operational efficiency. Customer can call
on 1800 209 1989 between 10:00 am - 7:00 p.m. from Monday
to Saturday (Except public Holidays and Sundays).

As we continue to grow, so does our responsibility to provide
responsive, accessible, and high-quality service to our clients
and partners. The launch of this call center marks a strategic
investment in our future, designed to ensure quicker response
times, better issue resolution, and a more personalized
customer experience.

The call centre will serve as a central hub for handling inquiries,
resolving concerns, and gathering valuable customer feedback.
It will also provide us with deeper insights into customer needs
and expectations, allowing us to continuously improve our
products and services. We have received a total 21678 number
of calls on our toll-free number from 30^th October, 2024 to
31^st March, 2025.

We believe this initiative not only strengthens our customer
service capabilities but also reflects our ongoing dedication to
transparency, accountability, and innovation.

Repayments

During the F.Y. 2024-25, ' 41,961.49 crore were received by
way of scheduled repayment of principal through monthly
instalments as well as prepayment of principal ahead of schedule,
as compared to ' 45,530.35 crore received in the previous year.

Non-Performing Assets and Provisions

The amount of gross Non-Performing Assets (NPAs) as of
31^st March, 2025 is ' 7,598.35 crore, which is 2.47 percent of the
loan portfolio of the Company, as against ' 9,483.39 crore i.e.,
3.31 percent of the loan portfolio as of 31^st March, 2024. The net
NPA as of 31^st March, 2025 was ' 3,704.42 crore i.e. 1.22 percent
of the loan portfolio vis-a-vis ' 4,607.13 crore i.e. 1.63 percent
of the loan portfolio as at 31^st March, 2024. The total cumulative
provision towards housing loan portfolio including provision
for standard assets as at 31^st March, 2025 is ' 2,525.48 crore as
against ' 3,478.25 crore in the previous year.

The Company has written off a total of ' 1,632.16 crore during the
FY 2024-25, which included a technical write-off of ' 1366.08.
This is in comparison to the total write off of ' 2,005.62 crore in
the previous financial year.

Resource Mobilisation

During the year, the Company mobilised funds aggregating to
' 1,04,975.30 crore by way of the Non-Convertible Debentures
(NCD), Term Loans / Line of Credit (LoC) / Working Capital
Demand Loan (WCDL) from Banks, NHB refinance, Commercial
Paper and Public Deposits. The Company has availed refinance

of ' 5500 crore from NHB. A brief on the various sources of
funds mobilised during FY 2024-25:

NON-CONVERTIBLE DEBENTURES (NCD)

During the year, the Company issued NCDs amounting to
' 44,655.40 crore on a private placement basis which have been
listed on Wholesale Debt Segment of National Stock Exchange
of India Ltd. The NCDs have been assigned highest rating of
‘CRISIL AAA/Stable' by CRISIL & 'CARE AAA/Stable' by CARE.
As at 31^st March, 2025, NCDs amounting to ' 1,48,781.59 crore
were outstanding. The Company has been regular in making
repayment of principal and payment of interest on the NCDs.

As at 31^st March, 2025, there were no NCDs that have not been
claimed by the Investors or not paid by the Company after
the date on which the said NCDs became due for redemption.
Accordingly, the amount of NCDs remaining unclaimed or
unpaid beyond due date is Nil.

TIER II BONDS

As at 31^st March, 2025, the outstanding Tier II Bonds stood at
' 1,796.86 crore. Considering the balance term of maturity as
at 31^st March, 2025, ' 1,796.86 crore of the book value of Tier
II Bonds is considered as Tier II Capital as per the Guidelines
issued by NHB for the purpose of Capital Adequacy.

TERM LOANS FROM BANK/ LOC / WCDL, REFINANCE
FROM NHB / COMMERCIAL PAPER

The total Term / LOC outstanding from the Banks as on
31^st March, 2025 were ' 86,595.03 crore as compared to
' 87,272.11 crore as on 31^st March, 2024. The Refinance from
NHB as on 31^st March, 2025 stood at ' 12,330.95 crore as against
' 8,864.47 crore as on 31^st March, 2024. During the year, the
Company has availed ' 5500 crore Refinance from NHB under
various refinance schemes. As on 31^st March, 2025, Commercial
Paper amounting to ' 12,849.86 crore were outstanding as
compared to ' 11,856.70 crore for corresponding previous year.
During the year 2024-25, the Company issued Commercial
Paper amounting to ' 16,394.30 crore from market as compared
to ' 13,852.04 crore for the previous year.

The Company's long term loan facilities have been assigned the
highest rating of ‘CRISIL AAA/STABLE' and short-term loan
has been assigned rating of ‘CRISIL A1 & ICRA A1 ' signifying
highest safety for timely servicing of debt obligations.

FIXED DEPOSITS (INCLUDING PUBLIC DEPOSIT)

As on 31^st March 2025, the outstanding amount on account of
Public Deposits was ' 4,899.08 crore as against ' 3,949.81 crore
in the previous year and outstanding amount on account of
Corporate Deposits was ' 3,343.84 crore as against ' 5,948.75
crore in the previous year. During F.Y. 2024-25, the number of
depositors from the public were 21981 as against 22377 in the
previous year and for Corporate Deposits the number was 869
in FY 2024-25 against 1032 in the previous year.

' 2,226.84 crore (P.Y. ' 1,871.17 crore) has been collected as
Public Deposits while ' 2,145.08 crore (P.Y. ' 5,141.59 crore)

was collected as Corporate Deposits. Total aggregate amount
collected was ' 4,371.92 crore (P.Y. ' 7,012.76 crore).

CRISIL has for the Eighteenth consecutive year, re-affirmed a
rating of "CRISIL AAA/Stable” for the Company's deposits which
indicates the highest degree of safety regarding timely servicing
of financial obligations and carries the lowest credit risk.

The support of the agents and their commitment to the
Company has been vital in mobilization of deposits and making
the product a preferred investment avenue for individual
households and others.

INITIATION OF SECURITISATION PROGRAMME

In line with its liability diversification strategy, the Company
has initiated groundwork during FY 2024-25 for launching its
first securitisation programme, with execution planned in the
subsequent financial year. The proposed structure, involving
securitisation of a pool of housing loans, is aimed at broadening
the Company's funding avenues. This move reflects LIC HFL's
proactive approach to strengthening its balance sheet and
exploring market-driven instruments to support future growth.
The transaction is expected to be a key step toward building a
more agile and diversified liability profile.

TRANSFER OF UNCLAIMED DIVIDEND / DEPOSITS AND
SHARES TO INVESTOR EDUCATION & PROTECTION
FUND (IEPF)

Pursuant to the provisions of Sections 124 and 125 of the
Companies Act, 2013, rules made thereunder and Investor
Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 read with the relevant circulars
and amendments thereto, the amount of dividend / deposits
remaining unclaimed for a period of seven years from the
date of transfer to unpaid dividend account are required to be
transferred to IEPF as constituted by the Central Government.
Further, as per the provisions of Section 124(6) of the Companies
Act, 2013 read with the Investor Education & Protection Fund
Authority (Accounting, Audit, Transfer & Refund) Rules 2016,
the shares in respect of which the dividend has not been claimed
for seven consecutive years are required to be transferred by
the Company to the designated demat account of the IEPF
Authority. The details of the unclaimed dividend/deposits and
the shares transferred to the IEPF, are uploaded on the website
of the Company, as per the requirements. Link for the same is
https://www.lichousing.com/investors-education.

UNPAID/UNCLAIMED DIVIDEND

During the financial year under review, after giving due notice
to the members, your Company has transferred unclaimed
dividend of ' 0.95 crore pertaining to the financial year 2016-17
to the IEPF, upon expiry of seven years from the date of transfer
to unpaid dividend account.

TRANSFER OF SHARES TO IEPF

Pursuant to the provisions of Section 124(6) of the Companies
Act, 2013 and the Rules made thereunder, the Company has
transferred in aggregate 69,477 equity shares of ' 2/- each to

IEPF in respect of which the dividend remained unclaimed for a
period of seven consecutive years i.e., from 2016-17 till the due
date of 24^th September, 2024 in respect of which, individual
notices had also been sent to concerned Shareholders.

UNCLAIMED DEPOSITS

A total of 283 Nos. of Fixed deposits amounting to ' 16.53 crore
(out of which 273 are public deposits amounting to ' 11.14 crore)
which were due for repayment on or before 31^st March, 2025
were not claimed by the depositors. Since then, 63 depositors
have claimed or renewed deposits of ' 7.14 crore (out of which
61 are public deposits amounting to ' 7.02 crore) as on 31^st May,
2025. Depositors were appropriately intimated for renewal /
claim of their deposits. Further, adequate follow-up has been
initiated in respect of those cases where Fixed deposits are
lying unclaimed.

As per the provisions of Section 125 of the Companies Act,
2013, deposits and interest thereon remaining unclaimed for
a period of seven years from the date they became due for
payment have to be transferred to the Investor Education and
Protection Fund (IEPF) established by the Central Government.
Accordingly, as on 31^st May, 2025'7.50 lakh against unclaimed
Principal and ' 8.47 lakh against unclaimed interest on deposits
has been transferred to IEPF. Concerned depositors can claim
their refunds from the IEPF authority.

Being a housing finance company registered with the National
Housing Bank established under the National Housing Bank Act,
1987, the disclosures as per Rule 8(5)(v) & (vi) of the Companies
(Accounts) Rules, 2014 read with section 73 and 74 of the
Companies Act, 2013 are not applicable to the Company.

Any person who is entitled to claim unclaimed dividend or
deposits etc. which have been transferred to IEPF, can claim the
same by making an application directly to IEPF in the prescribed
form under the IEPF Rules which is available on the website of
IEPF i.e., www.iepf.gov.in.

REGULATORY COMPLIANCE

Following the amendment in the Finance Act of 2019 and the
subsequent notification by the Reserve Bank of India (RBI) in
August 2019, Housing Finance Companies (HFCs) are now
categorized as Non-Banking Financial Companies (NBFCs)
for regulatory purposes. Consequently, they fall under the
direct oversight of the RBI. However, the National Housing
Bank (NHB) will continue to supervise HFCs. In this context,
the Master Direction titled 'Non-Banking Financial Company -
Housing Finance Company (Reserve Bank) Directions, 2021' was
issued on 17^th February, 2021, superseding the regulations and
directions previously outlined in Chapter XVII.

The Company diligently adheres to guidelines, circulars
and directions issued by the RBI/ NHB, from time to time.
The Company has fully complied with the following regulatory
frameworks: - Master Direction-Non-Banking Financial Company
- Housing Finance Company (Reserve Bank) Directions, 2021 -

Master Direction - Reserve Bank of India (Non-Banking Financial
Company - Scale Based Regulation) Directions, 2023.

Additionally, the Company has followed all the directions and
guidelines prescribed by the RBI. These encompass various
aspects, including acceptance of deposits, accounting standards,
prudential norms, capital adequacy, credit rating, corporate
governance, liquidity management, information technology
framework, fair practice code, fraud monitoring, concentration
of investments, risk management, capital market exposure
norms, Know Your Customer (KYC) guidelines, maintenance of
liquidity coverage ratio, and anti-money laundering measures.

Your Company has been maintaining capital adequacy ratio as
prescribed by the RBI. The capital adequacy ratio was 23.20
percent as on 31^st March, 2025, as against 20.78 percent as
on 31^st March, 2024 (as against the regulatory requirement of
minimum 15 percent).

The Company also has been following Directions / Guidelines
/ Circulars issued by SEBI, MCA, NHB and RBI from time to
time, as applicable to a Listed Company and an Upper Layer
Non-Banking Financial Company (Housing Finance Company).
Regulatory and statutory updates are regularly presented before
the Board, and the Company has established robust systems
and processes to ensure compliance with these requirements.

As per the requirements of the RBI's Scale based Regulations,
the Internal Capital Adequacy Assessment Procedure (ICAAP)
is being implemented and the ICAAP policy has been approved
by the Board of Directors of the Company on 7^th March, 2024
and the ICAAP implementation has been completed on during
the current financial year.

The Reserve Bank of India (RBI), through Circular No.
RBI/2023-24/117 dated 31^st January, 2024, as extended
thereafter, has mandated all regulated entities (REs) to
implement streamlined internal compliance monitoring
functions leveraging technology by 30^th April, 2025. The circular
emphasizes the adoption of a comprehensive, integrated,
enterprise-wide, and workflow-based compliance management
system to enhance monitoring efficiency and minimize manual
intervention. In line with these regulatory expectations,
adherence to this regulatory requirement, the Company has
developed a Compliance Testing Tool designed to track all
applicable regulatory and legal compliances, thereby improving
oversight and reducing dependency on manual processes.
This tool is in its initial phase of adoption and is evolving within
the organisation with the increasing awareness amongst the
employees who are being trained to effectively integrate this
tool into their compliance routines.

Shri R. Murali was appointed as the Chief Compliance Officer
with effect from 1^st July, 2024, following the superannuation
of Dr. D. R. Muralidharan, who relinquished the position on
30^th June, 2024. The appointment was made in accordance with

the requirements specified under RBI Circular No. DOS.CO.PPG/
SEC.01/11.01.005/2022-23 dated 11^th April, 2022.

POLICIES AND CODES

During the year, the Company has reviewed all its policies and
modifications therein as required in terms of provisions of the
Act, RBI Directions, Listing Regulations and Insider Trading
Regulations issued by the SEBI and placed all the statutory
policies on its website at https://www.lichousing.com/
investors/policv-codes/

Disclosure under Housing Finance Companies for issuance
of Non-Convertible Debentures on Private Placement
Basis (NHB) Directions, 2014 read with Master Direction -
Non-Banking Financial Company - Housing Finance Company
(Reserve Bank) Directions, 2021.

During the financial year under review, the Non-Convertible
Debentures issued on private placement basis, were repaid /
redeemed by the Company on their respective due dates and
there were no instances of any Non-Convertible Debentures
which have not been claimed by the investors or not paid by
the Company after the date on which the Non-Convertible
Debentures became due for redemption.

AUDITORS, AUDIT REPORTS AND OBSERVATIONS
Statutory Audit

As per the guidelines for appointment of Statutory Central
Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks
(excluding RRBs), UCBs and NBFCs (including HFCs) issued by
the RBI vide ref. no. DoS.C0.ARG/SEC.01/08.91.001/2021-22
dated 27^th April, 2021, the Company is required to appoint the
statutory auditors for a continuous period of three years, subject
to the firms satisfying the eligibility norms (to be confirmed
by the firms in Form B) each year and also to inform RBI [i.e.
Central Office of RBI (Department of Supervision)] about the
appointment of SCAs/SAs for each year by way of a certificate
in Form A within one month of such appointment. Based on
the recommendation of the Audit Committee and subsequent
approval by the Board of Directors, the Company has appointed
the following statutory auditors:

M/s. Shah Gupta & Co., Chartered Accountants (Firm
Registration No.: 109574W) and

M/s. Batliboi & Purohit, Chartered Accountants (Firm
Registration No.: 101048W)

Subject to the approval of the shareholders in the ensuing
Annual General Meeting, the above named auditors will serve as
Joint Statutory Auditors (JSAs) for a term of three consecutive
years. The appointment will be considered at the Thirty-Sixth
Annual General Meeting to be held on 29^th August, 2025 and
will continue until the conclusion of the Thirty-Nineth Annual
General Meeting in the year 2028. Upon receipt of approval
from the shareholders the Company will communicate the
above appointment to the National Housing Bank (NHB), RBI,
and the Ministry of Corporate Affairs (MCA).

The existing Joint Statutory Auditors M/s. SGCO & Co.
LLP, Chartered Accountants (Firm Registration No.: 112081W/
W100184) and M/s. Khandelwal Jain & Co., Chartered
Accountants (Firm Registration No.: 105049W) shall be
retiring on the conclusion of their term of three consecutive
years at the Thirty-Sixth Annual General Meeting to be held on
29^th August, 2025 and have conducted the audit of the
standalone and consolidated Financial Statements of the
Company for the FY 2024-25 in accordance with the Standards
on Auditing specified under sub-section (10) of section 143 of the
Companies Act, 2013. The Auditors' Report for FY 2024-25 does
not contain any qualification, reservation or adverse remark on
the financial statements for the year ended 31^st March, 2025.
The notes on financial statements referred to in the Auditors'
Report are self-explanatory and do not call for any further
comments. The Joint Statutory Auditors' Report dated 15^th May,
2025 for the financial year 2024-25 is enclosed with the financial
statements in this Annual Report.

Internal Audit

Internal Audit, Auditors and Audit Report

The Reserve Bank of India (RBI) has issued Circular No.
RBI/2021-22/53-DoS. CO. PPG.SEC/03/11.01.005/2021-22 dated
11^th June, 2021, making the Risk-Based Internal Audit (RBIA)
Framework applicable to our Company. As per the provisions
of this circular, the Company was required to establish an RBIA
framework by 30^th June, 2022. We are pleased to report that
the Company has in place an RBIA policy in accordance with the
aforementioned circular.

Internal Audit of Back Offices

The Company has a robust in-house mechanism to conduct
internal audits across all its back offices, which function as key
nodes for accounting, sanctioning, and disbursement activities.
These audits are performed by dedicated teams from the internal
audit department. To ensure consistency and thoroughness,
the Company utilizes a detailed and regularly updated audit
checklist/questionnaire. Each internal audit team is responsible
for submitting quarterly reports on their assigned back offices.
These reports are periodically reviewed by the Internal Audit
Committee at the Corporate Office—a management-level
body. Key findings and observations from the audit reports are
thoroughly discussed and subsequently presented to the Audit
Committee of the Board for their review and strategic input.

As part of the digitalisation initiatives of the Company, the
Company has an in-house audit portal to facilitate real-time
tracking, reporting, and closure of audit observations, thereby
ensuring a robust internal control environment and enhancing
overall audit efficiency and accountability across departments.

Internal Audit of Corporate Office

The Company has implemented an in-house system for
conducting internal audits of the Corporate Office. Beginning with
the financial year 2024-25, these audits are primarily carried
out by the internal audit department. However, for specific
areas requiring specialized expertise, external professionals
are engaged. In this regard, M/s. SK Patodia & Co., Chartered
Accountants and M/s. CNK & Associates, Chartered Accountants,

were appointed with the Audit Committee's approval to provide
expert support.

Secretarial Audit

Pursuant to the amendment carried out in Regulation 24A of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2024 effective from 1^st April, 2025 every listed
entity shall have to appoint an individual Secretarial Auditor
for one term of five consecutive years or Secretarial Audit Firm
for two terms of five consecutive years each. The Regulation
requires the Secretarial Auditors so appointed to be a Company
Secretary in practice and peer reviewed by the Institute of
Companies Secretaries of India (ICSI).

Considering the above amendment, the Board has appointed
M/s. BNP & Associates (Peer Reviewed Firm), Practicing
Company Secretaries, to conduct the Secretarial Audit of your
Company for a term of 5 consecutive years commencing from
FY 2025-26 to FY 2029-30 which shall be subject to approval of
shareholders in the ensuing Annual General Meeting. M/s. BNP
& Associates have confirmed that they are not disqualified to
be appointed as a Secretarial Auditor and are eligible to hold
office as Secretarial Auditor of your Company. If appointed,
M/s. BNP & Associates shall serve as Secretarial Auditors
from the conclusion of the 36^th Annual General meeting till
the conclusion of 41^st Annual General Meeting to be held for
FY 2029-30. The remuneration payable to the Secretarial
Auditors shall be decided by the Board on the basis of
recommendation made by the Audit Committee of the Company.

M/s. BNP & Associates diligently undertook the Secretarial Audit
during the said financial year. We are pleased to report that
the Secretarial Auditor's Report for the financial year 2024-25
contains no qualifications, reservations, or adverse remarks.
The detailed Secretarial Audit Report in Form MR-3 is annexed
to this report as Annexure-5.

Cost Records and Cost Audit:

Maintenance of cost records and requirement of cost audit
as prescribed under the provisions of Section 148(1) of the
Companies Act, 2013 are not applicable in relation to the
business activities carried out by the Company.

CORPORATE GOVERNANCE

Your Company remains dedicated to maintaining the highest
standards of Corporate Governance. The Board of Directors
reaffirms its strong commitment to the core values of
transparency, accountability, and integrity. A comprehensive
Corporate Governance Report is included as a distinct section
in this Annual Report. This year's report offers an in-depth
overview of our governance framework, covering inter alia
areas such as our code of governance, board composition,
appointment processes, criteria for membership, declarations
from Independent Directors, board performance evaluations,
familiarization initiatives, and our vigil mechanism.

A certificate from M/s. BNP & Associates, Practicing Company
Secretaries, Mumbai (UDIN: F005578G000779560), regarding
compliance of the conditions of Corporate Governance as
stipulated under the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 is attached to the Corporate
Governance Report and the same does not contain any
qualification, reservation or adverse remarks.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report for the year
under review, as stipulated under SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is presented in a
separate section forming part of the Annual Report.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORTING BY LISTED ENTITIES

The Company has entrusted the Board's ESG Committee
with the responsibility of overseeing the implementation of
its Business Responsibility and Sustainability Report (BRSR)
principles and policies. The CSR-ESG Committee has been
delegated the necessary authority to carry out all actions
required in this regard. The BRSR for the reporting year,
prepared in accordance with the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, is presented in a
separate section of this Annual Report.

The BRSR benchmarks the Company's performance against
the principles of the 'National Guidelines on Responsible
Business Conduct' and the BRSR related policies of the
Company. This would enable the members to have an insight
into Environmental, Social and Governance initiatives taken
by the Company.

DEPOSITORY SYSTEM

To enable the trading of its shares in dematerialised form,
the Company has entered into agreements with both Central
Depository Services (India) Ltd. (CDSL) and National Securities
Depository Ltd. (NSDL). Shareholders have the option to select
their preferred Depository Participant. As of 31^st March, 2025,
a total of 3,383 members still hold shares in physical form.
In accordance with SEBI directives, all share transactions must
be conducted in dematerialised form. Shareholders holding
physical shares are therefore being continuously encouraged
to convert their physical holdings into dematerialised form
at the earliest. For assistance, members may reach out to the
Company's Registrar and Transfer Agent. It is also important
to note that NSDL has been designated as the depository for
various SEBI compliance requirements.

OUTLOOK FOR FY 2025-26

During the FY 2025-26 the focus, resources and logistics of the
Company would be directed towards the following activities:

• Continuing to meet the housing needs of individuals
and contributing to the overall growth and
development of the nation;

• Growing the portfolio, eyeing growth in retail book, and
increasing the share of high-margin products - Other than
Housing Loan Products;

• Tapping into newer markets not presently covered by
recruiting marketing intermediaries and connectors;

• Solidifying the base of Direct Marketing Executive (DME)
by recruiting new DMEs and individuals and increasing
business share from this channel;

• Increasing emphasis on marketing activities in smart cities
to increase business share;

• Streamlining customer acquisition, enhancing efficiency
of loan servicing, simplifying application processes, and
improving access to financing solutions;

• Reaching out to new customers through differentiated
products backed by mortgage guarantee to improve
yields; moving to high-yielding segments;

• Furthering transformation-led initiatives, including Project
RED and driving automation in processing leading to
improvement in turn-around time; Bringing personalisation
in customer servicing and enhancing customer experience
throughout loan journey by:

a. Strengthening digital processes through
e-appraisal and PLO

b. Making HomY app more effective and easing
customer onboarding

c. Maximising digital onboarding go beyond 50%
(including HomY)

d. Making use of data and analytics for segment driven
customer acquisition

e. Modernising technology in line with growing business
needs and automation

• Despite a competitive market impacting asset under
management (AUM) growth, net interest margin (NIM)
is expected between 2.5% to 2.7% and overall double
digit growth in loan book, and in its assets under
management (AUM);

• Customising products to tap into niche segments like HNIs
and Millennials and Gen Z segments;

• Exploring strategic tie-ups to increase customer
touchpoints, increasing presence in social media and
augmenting customer engagement programs to increase
brand visibility;

• Assessing Risk-Reward relationship in credit decision
making in view of the overall profitability.

MANAGEMENT PERSPECTIVE ABOUT FUTURE OF THE
COMPANY

India's housing sector is experiencing unprecedented growth,
fuelled by robust government initiatives and favourable
market conditions. The sector is on a growth trajectory, driven
by India's changing demographic profile, rising incomes,
enhanced affordability, and substantial government support.
The growth in housing credit can be attributed to a strong
revival in the residential property market following the pent-up
demand. An improving macro-economic environment, rapid
pace of urbanisation, nuclearisation of families, and affordable
mortgages are also aiding the industry.

Valued at ' 33 trillion, India's housing finance market is expected
to grow by a CAGR of 15-16% between 2024-25 and 2029-30 to
' 71-81 trillion, as per a report by CareEdge Ratings. This growth
will be driven by robust structural elements and favourable
government incentives, making housing finance an attractive
asset class for lenders. The retail segment remains the primary
growth driver for housing finance companies.

During the year 2024-25, your Company solidified its market
presence, improved asset quality, and ensured stable Net
Interest Margins to cater to increasing business appetite. With its
best-in-class 9,000 strong active agency force, the Company
continued to be on its transformation journey with the widest
network of offices and a growing reach across the nation.
It ramped up its presence in Tier 2 & 3 cities, strengthened
its distribution network and enhanced the business through
developer connectors and strategic tie-ups. It strives to reduce
its delinquencies, bring down non-performing assets and
fast-track recovery and monitoring.

With digital transformation, your Company's endeavour
is to improve service standards through ongoing digital
transformation of the processes. Project Red, the Company's
ongoing transformation initiative, helped expand its digital
initiatives to counter competition and roll out key business
expansion strategies, and is making effective use of data and
analytics for segment-driven customer acquisition. It continues
to leverage technology to ease customer onboarding, streamline
processes and expand the scope of business potential mapping.
Efforts are being taken to make the HomY app more effective,
maximise digital onboarding to more than 50% and considerably
improve upon TAT.

Moving forward, the Company is increasing its presence in the
unorganised sector, which contributes hugely to the economy.
It is growing the loan book by tapping further opportunities and
also increasing focus on high-yielding products. It disbursed
loans under the Government's flagship housing scheme,
Pradhan Mantri Awas Yojana, benefiting homebuyers from the
economically weaker sections (EWS), low-income group, and
middle-income groups.

During the year, the Company maintained its trend of setting
rates of interest at par with banks. It also focused on designing
products addressing the emerging and evolving needs of

customers in the non-core segment. To further expand its reach
and deliver value to its shareholders, it emphasised on judicious
management of treasury and other aspects of operations to
ensure co-ordinated and result-oriented efforts in its business
and to increase market share.

Moving ahead, your Company continues to churn its borrowings
to maintain lower borrowing cost and to positively impact Net
Interest Margin (NIM). It endeavours to put in place the best
corporate governance practices through constant review and
upgradation of compliance initiatives.

Your Company is further strengthening its underwriting
procedures and improving operational flexibility, strengthening
digital outreach and focusing on customer contact. It tracks and
analyses the performance of its loan portfolio continuously to
identify potential areas of concern and takes corrective actions.
It maintains an aggressive approach towards recovery activities,
with several follow-up mechanisms such as tele calling,
contacting borrowers, SMS, e-mails and other communication
on a regular basis, and initiates action under SARFAESI / NCLT
under chronic cases.

The Company plans to also continue growing in the Individual
Home Loan category and is promoting its flagship products.

COMPLIANCE UNDER COMPANIES ACT, 2013

Pursuant to section 134 of the Companies Act, 2013 read with the
Companies (Accounts) Rules, 2014, the Company has diligently
fulfilled its compliance requirements. The specific details of
compliances under Companies Act, 2013 are as follows:

ANNUAL RETURN:

In accordance with Section 92(3) read with Section 134(3)(a)
of the Companies Act, 2013, the Annual Return as on 31^st March,
2025 is available on the website of the Company in the following
link (Please download the document and then try to view):

https://www.lichousing.com/annual-report-companies-act

REPORTING OF FRAUDS BY AUDITORS:

During the year under review, the Joint Statutory Auditors and
the Secretarial Auditors did not report any instances of fraud
involving the Company's officers, employees, or external parties.
Had any such cases arisen, these would have been disclosed in
the Board's report in accordance with Section 143(12) of the
Companies Act, 2013.

SECRETARIAL STANDARDS:

During the year under review, your Company has complied with
all the applicable mandatory Secretarial Standards issued by the
Institute of Company Secretaries of India.

RATING RATIONALE:

Your Company's financial discipline and prudence is reflected in
the strong credit ratings ascribed by rating agencies. The details
of credit rating are disclosed in the Corporate Governance
Report, which forms part of this Integrated Annual Report.

BOARD MEETINGS HELD DURING THE YEAR:

During the year under review, Seven (7) Board meetings
were convened and held. Detailed information on these Board
meetings as well as meetings of several Committees set up
by the Board, their composition and attendance record of
the members of respective Committees is included in the
Report on Corporate Governance which forms integral part of
this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT:

The financial statements have been prepared in accordance
with Indian Accounting Standards (IndAs) under the historical
cost convention on accrual basis except for certain financial
instruments, which are measured at fair values. The Company
adheres to the provisions of the Companies Act, 2013 (to the
extent modified), guidelines issued by SEBI, and guidelines
issued by the National Housing Bank (NHB) and the Reserve
Bank of India (RBI) (collectively referred to as 'the Previous
GAAP') in preparation of the financial statements.

The Ind AS are prescribed under Section 133 of the Companies
Act, 2013 read with Companies (Indian Accounting Standards)
Rules, 2015, as amended from time to time, and other accounting
principles generally accepted in India. Accounting policies
have been consistently applied. Wherever applicable, newly
issued accounting standards or revisions to existing standards
have been duly incorporated into the accounting policies
hitherto in use.

In accordance with the provisions of Section 134(3)(c) and
134(5) of the Companies Act, 2013, and based on the information
provided by the management, your Directors state that:

(a) i n the preparation of the annual accounts, the applicable
accounting standards had been followed and there are no
material departures;

(b) the Directors had selected such accounting policies and
applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as
at 31^st March, 2025 and of the profit of the Company for the
year ended on that period

(c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of this Act for safeguarding the assets
of the Company and for preventing and detecting fraud
and other irregularities;

(d) the Directors had prepared the annual accounts on a
going concern basis;

(e) the Directors had laid down internal financial controls to be
followed by the Company and that such internal financial
controls are adequate and are operating effectively.
Note on internal financial control is attached as Annexure 1
to this Report and

(f) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.

Based on the framework of internal financial controls and
compliance systems established and maintained by the
Company, the work performed by the internal, statutory and
secretarial auditors and external consultants, including the audit
of internal financial controls over financial reporting by the
statutory auditors and the reviews performed by management
and the relevant board committees, including the audit
committee, the Board is of the opinion that the Company's
internal financial controls were adequate and effective
during FY 2024-25.

STATEMENT ON DECLARATION FROM INDEPENDENT
DIRECTORS:

The Company has obtained the required declarations from each
Independent Director as per Section 149(7) of the Companies
Act, 2013. These declarations affirm that the independent
directors satisfy the independence criteria specified in Section
149(6) of the Companies Act, 2013, and Regulation 16(1)(b) of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

COMPANY’S POLICY ON DIRECTORS’ APPOINTMENT
AND REMUNERATION INCLUDING CRITERIA:

The Company endeavours to have an appropriate mix of
executive, non-executive and independent directors to maintain
the independence of the Board and separate its functions of
governance and management. As of 31^st March, 2025, the Board
comprises of Thirteen (13) members as under:

One (1) Executive Director and two (2) Non-Executive Nominee
Directors nominated by LIC of India ('The Promoter'), being the
Managing Director & CEO, the Chairman and the Non-Executive
Director, Two (2) Non-Executive and Non-Independent
Directors. Eight (8) Non-Executive Independent Directors,
including one Independent woman director.

The Nomination and Remuneration Committee had laid down
Criteria for determining Director's Qualification, positive
attributes and independence of a Director, remuneration
of Directors, Key Managerial Personnel and also criteria for
evaluation of Directors, Chairperson, Non-Executive Directors
and Board as a whole and also the evaluation process of the same.

The performance of the members of the Board, and the Board
as a whole was evaluated at the meetings of Independent
Directors held on 27^th February, 2025 and 5^th March, 2025.

We affirm that except for the Nominee Director (Chairman, LIC
Nominee Director and Managing Director & CEO), sitting fees
are paid to all the other Directors for Board and Committee
Meetings attended by them. However, the Managing Director &
CEO is being paid remuneration as applicable to an Officer in the
cadre of Zonal Manager (Selection Scale) of LIC of India and PLI
as per the terms laid out in the Nomination and Remuneration
Policy of the Company. The remuneration payable to them has

been duly approved by the Board and also by the shareholders
of the Company.

QUALIFICATION, RESERVATION OR ADVERSE
REMARK OR DISCLAIMER MADE BY JOINT STATUTORY
AUDITORS AND SECRETARIAL AUDITOR:

There are no observations, qualifications, reservations or
adverse remarks in the Joint Statutory Auditors' Report dated
15^th May, 2025 for the FY 2024-25.

The management accepts responsibility for establishing and
maintaining internal controls and has evaluated the effectiveness
of the internal control system of the Company details of which
have been disclosed to the Auditors and the Audit Committee,
the deficiencies, of which the management is aware of, in the
design or operation of the internal control systems and has
accordingly taken steps to rectify these deficiencies.

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS:

Pursuant to Section 186(11) of the Companies Act, 2013, details
of loans made, guarantee given, or security provided by the
HFC in the ordinary course of its business are exempted from
disclosure in the Annual Report to the members.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES REFERRED TO SECTION IN
188(1) OF THE COMPANIES ACT, 2013 READ WITH
RULE 8(2) OF COMPANIES (ACCOUNTS) RULES, 2014:

Given the nature of the industry in which the Company
operates, all Related Party Transactions entered into during
the financial year were conducted in the ordinary course of
business and on an arm's length basis. The Company did not
engage in any materially significant related party transactions
with Promoters, Directors, Key Managerial Personnel, or other
individuals that could potentially conflict with the Company's
interests. All such transactions are reviewed and approved by
the Audit Committee and the Board of Directors, as applicable.
In addition, prior omnibus approval, in accordance with SEBI
(Listing Obligations and Disclosure Requirements) Regulations,
2015, is obtained from the Audit Committee for repetitive
transactions and those which are conducted in the ordinary
course of business.

The Related Party Transactions Policy and Procedures, as
amended from time to time, as reviewed by the Audit Committee
and approved by Board of Directors is uploaded on the website
of the Company at https://www.lichousing.com/policv-codes.

The particulars of contracts or arrangements with the 'Related
Parties' referred to in sub-section (1) of Section 188 of the Act,
are furnished in Note No. 47 of the Notes forming part of the
Standalone Financial Statements and the Consolidated Financial
Statements for FY 2024-25, forming a part of the Annual Report.
This apart, the same is also referred to in Annexure—3 which
forms an integral part of the Board's Report.

Form AOC-2 pursuant to clause (h) of sub-section (3) of Section
134 of the Companies Act, 2013 and Rule 8(2) of the Companies
(Accounts) Rules, 2014 is annexed as Annexure- 2 to this report.

MATERIAL CHANGES AND COMMITMENTS, IF ANY,
AFFECTING THE FINANCIAL POSITION OF THE
COMPANY:

There are no material changes and commitments affecting the
financial position of the Company which have occurred between
the end of the financial year of the Company i.e. 31^st March, 2025
and the date of the Board's Report i.e. 1^st August, 2025.

CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO:

Since the Company is engaged in financial services activities,
its operations are not energy intensive nor do they require
adoption of specific technology and hence information in
terms of Section 134(3)(m) of the Act read with the Companies
(Accounts) Rules, 2014 is not provided in this Board's Report.

A. Technology absorption -

(i) Company has implemented Terra Economics and Analytics
Lab (TEAL) platform for property due diligence of land
and property in India which has resulted in automation and
paperless due diligence. Company has also implemented
account aggregator facility from NESL Asset Data Limited
(NADL). The Account Aggregator (AA) framework
facilitates secure and consent based sharing of financial
data between institutions resulting better transparency
and security of financial data.

(ii) The benefits derived from the technology absorption
and initiatives undertaken for technological updation and
further integrations are mainly towards:

• Reduced TAT for customer onboarding;

• Digital lending and STP process;

• Phygital journey enables lesser paper consumption;

• Secured Transactions;

• Online payment services

(iii) There was no imported technology acquired by the
Company in the last three years reckoned from the
beginning of this financial year.

(iv) The expenditure incurred on Research and Development
- Not applicable

B. Foreign Exchange Earnings and Outgo-

During the year ended 31^st March, 2025, the Company did not
have any foreign exchange earnings.

Following is the foreign exchange outgo transaction
during the year:

1. A total of ' 1.18 crore was incurred towards Operating
Expenses of Overseas Area Offices.

2. The Company had delisted its Global Depository Receipts from
the Luxemburg Stock Exchange with effect from 25^th March,
2024. The Company during the year paid ' 0.61 lakh to the
Luxemburg Stock Exchange towards the Annual Maintenance
Charges for listing services on a pro-rata basis for a period
between 1^st January, 2024 to 25^th March, 2024.

The above transaction does not include foreign currency cash
flows in derivatives and foreign currency exchange transactions.

RISK MANAGEMENT POLICY OF THE COMPANY:

As part of the company's continued commitment towards
strengthening its risk management framework, several new
initiatives were undertaken during the year. These include
enhancements to the Internal Capital Adequacy Assessment
Process (ICAAP), with a focus on aligning capital planning more
closely with the company's risk profile and strategic objectives.
Additionally, the Internal Risk Control Matrix has been updated
to ensure it remains robust and finely tuned to the organization's
evolving risk environment. These updates aim to reinforce the
company's ability to proactively identify, assess, and manage
risks, thereby enhancing overall resilience and governance.

The Company's Board of Directors has established a Risk
Management Committee tasked with developing, implementing,
overseeing, and reviewing the risk management policy.
This committee also evaluates the current status of the risk
limits set in the policy and provides regular reports to the Board.
As part of the risk management framework, the Company
identifies and evaluates potential risks, assessing the necessary
controls for each identified risk. Comprehensive policies and
procedures are in place to ensure continuous monitoring,
mitigation and reporting.

The Company maintains a robust Risk Management Policy.
During the financial year under review, the Risk Management
Policy of the Company was reviewed and put up to the Board of
Directors. The same was approved at the Board Meeting dated
5^th March, 2025.

The Board affirms that none of the risks faced by the Company
pose a threat to its existence.

REMUNERATION POLICY

The Company has framed the Remuneration Policy in order
to align itself with various provisions under SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
and RBI Circular DOR.GOV.REC.No.29/18.10.002/2022-23 dated
29^th April, 2022. The Policy was last reviewed by the Board on
7^th March, 2024.

The Remuneration policy relating to the remuneration
of Directors, Key Managerial Personnel and other
employees are as below:

REMUNERATION TO NON-EXECUTIVE DIRECTORS:

The Non-Executive Directors would be paid such amount of
sitting fees as decided by the Board from time to time for every
Board and Committee Meeting they attend subject to the ceiling
laid down in the Companies Act, 2013. Apart from sitting fees no
other remuneration / commission would be payable to them.

In future, if Company decides to pay any remuneration /
commission to Non-Executive Independent Directors, the
same will be in compliance with the Companies Act, 2013 and
Regulation 17(6) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended from time to time.

REMUNERATION TO NON-EXECUTIVE NOMINEE
DIRECTORS:

The Non-Executive Nominee Directors are not paid any sitting
fees for the Board and Committee Meetings they attend.
The Non-Executive Nominee Directors are not paid any salary
and / or other benefits by the Company.

REMUNERATION TO MANAGING DIRECTOR & CEO:

The Managing Director & CEO is paid remuneration as applicable
to an officer in the cadre of Zonal Officer (Selection Scale) of LIC
of India. This apart, he is entitled for PLI as per criteria approved
by the Nomination and Remuneration Committee of the Board
and by the shareholders.

As and when there is any revision in the pay scales of the
Managing Director & CEO as per the charter decided by the
LIC of India, then the same is made applicable to the Managing
Director & CEO at par with those of the officials in the similar
cadre. Further, tenure and terms and conditions of appointment
of Managing Director & CEO are as decided by LIC of India
from time to time and as approved by the Board of Directors
of the Company.

However, the remuneration payable to the Managing Director
& CEO at any point of time shall be within the limits specified
under the Companies Act, 2013 and as per Regulation 17(6) of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended from time to time.

REMUNERATION TO KEY MANAGERIAL PERSONNEL
(OTHER THAN MD & CEO) AND OTHER EMPLOYEES:

In the present set up of the Company, the Key Managerial
Personnel, other than Managing Director & CEO, are the Company
Secretary and Chief Financial Officer. Remuneration payable
to Company Secretary, Chief Financial Officer and other
employees is as decided by the Board of Directors as per Service
Terms, Conduct Rules 1990 as amended from time to time
and as recommended by the Nomination and Remuneration
Committee. Further the Company has in place the Compensation
Policy for Key Managerial Personnel and Senior Management
which is in confirmation to the requirements of the circular

issued by the Reserve Bank of India dated 29^th April, 2022 on
Guidelines on Compensation of Key Managerial Personnel and
Senior Management in NBFCs.

Except Managing Director & CEO who is a whole time
Executive Director, none of the Directors of the Company
are paid excluding sitting fees as indicated above, any other
remuneration or any elements of remuneration package under
major groups, such as salary, benefits, bonuses, stock options,
pension, performance linked incentive etc.

CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY:

In compliance with Section 135 of the Companies Act, 2013 read
with the Companies (Corporate Social Responsibility Policy)
Rules, 2014, as amended from time to time, the Company has
established Corporate Social Responsibility Committee of the
Board and the statutory disclosures with respect to the CSR
Committee and an Annual Report on CSR activities is annexed
as Annexure-4 to this report.

Composition of the Corporate Social Responsibility
Committee is as follows:

ANNUAL EVALUATION MADE BY THE BOARD OF ITS
OWN PERFORMANCE:

The Nomination and Remuneration Committee had formulated
and recommended the evaluation criteria and process for the
Directors, Chairperson, Non-Executive Directors, Board-level
committees, and the Board as a whole.

The Board of Directors, including the independent directors,
conducted an annual performance evaluation in accordance
with the Companies Act, 2013 and the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015. This evaluation
was carried out through circulation of the criteria formulated.
The Board's performance was assessed based on inputs received
from all Directors. Criteria included the Board's composition and
structure, the effectiveness of Board processes, information
and functioning, disclosure and communication processes, and
access to timely, accurate, and relevant information.

The performance of the various Board Committees was
evaluated by the Board, using inputs from the respective
committee members. The criteria for this evaluation included the
composition of the committees, the effectiveness of committee
meetings, and their overall functioning.

The Board also reviewed the performance of individual Directors.
This was based on criteria such as the Director's contribution
to Board and Committee Meetings, their preparedness on
the issues discussed, their meaningful and constructive

contributions and inputs in meetings, and their ability to present
views convincingly and resolutely. The Chairman was also
evaluated on the key aspects of his role.

The Independent Directors held a meeting on 27^th February,
2025 and 5^th March, 2025 to evaluate the performance
of Non-Independent Directors, the Board as a whole,
and the Chairman.

REPORT ON THE PERFORMANCE AND FINANCIAL
POSITION OF EACH OF THE SUBSIDIARIES, ASSOCIATES
AND JOINT VENTURE COMPANIES INCLUDED IN THE
CONSOLIDATED FINANCIAL STATEMENT:

Pursuant to Section 129 of the Companies Act, 2013, the
Company has prepared a consolidated financial statement of
the Company along with its subsidiaries and associates, in the
same form and manner as that of the Company which shall be
laid before the ensuing Thirty Sixth Annual General Meeting of
the Company along with the Company's Financial Statement
under sub-section (2) of Section 129 i.e. Standalone Financial
Statement. Further, pursuant to the provisions of Indian
Accounting Standard (Ind AS) 110, Consolidated Financial
Statements notified under Section 133 of the Companies Act,
2013 read with Rule 7 of the Companies (Accounts) Rules, 2014,
issued by the Ministry of Corporate Affairs, the Consolidated
Financial Statements of the Company along with its subsidiaries
and associates for the year ended 31^st March, 2025 forms a part
of this Annual Report.

In accordance with the provisions of Section 136 of the
Companies Act, 2013, the Annual Report of the Company, the
Annual Financial Statements and the related documents of the
Company's subsidiary and associate companies are hosted on
the website of the Company.

Directors:

As on 31^st March, 2025, the Board comprised thirteen (13)
members, including two (2) Non-Executive Non-Independent
Directors and one (1) Executive Director nominated by the
promoter, Life Insurance Corporation of India. The promoter
nominees on the Board are Shri Siddhartha Mohanty,
Non-Executive Director and Chairman; Shri Jagganath Mukkavali,
Non-Executive Director; and Shri T. Adhikari, Managing
Director & CEO.

In addition to the aforementioned two Non-Executive Nominee
Directors, the Board includes two (2) other Non-Executive,
Non-Independent Directors — Shri P. Koteswara Rao and Shri
Akshay Kumar Rout.

The remaining eight (8) members of the Board are Independent
Directors, including one Woman Independent Director — Smt.
Jagennath Jayanthi. The other Independent Directors are Shri
Ameet N. Patel, Shri V. K. Kukreja, Shri Kashi Prasad Khandelwal,
Shri Ravi Krishan Takkar, Shri Sanjay Kumar Khemani, Shri
Ramesh Lakshman Adige, and Shri Anil Kaul*

(*) Shri Anil Kaul was appointed as an Independent Director
w.e.f. 15^th May, 2024.

Succession Planning:

In line with the Company's commitment towards ensuring
business continuity, leadership stability, and the effective
execution of long-term strategic goals, the Board has adopted
a structured approach to succession planning at the top
leadership level. To facilitate a seamless leadership transition
and minimize disruption, the Board has resolved that the
incoming Managing Director & Chief Executive Officer (MD &
CEO) will be appointed in advance—ideally 4 to 6 months prior
to formally assuming the role.

In terms of Article 138(b) of the Articles of Association of
Company, LIC of India is entitled to nominate up to one third of
the total number of Directors of the Company and therefore, the
Board after consideration, approved the posting of senior official
from LIC of India as Nominee of LIC of India for the post of COO
as part of succession plan for MD & CEO with a view to ensure
stability and effective implementation, within a reasonable
time (generally 4 to 6 months) prior to the exit of the serving
MD&CEO, of long term business strategies. LIC of India had
posted Shri T Adhikari as COO of the Company with effect from
22^nd June, 2023 (date of Joining LICHFL being 7^th September,
2022). Subsequently he was appointed as the Managing
Director & CEO w.e.f. 03^rd August, 2023 and his appointment
has been approved by the Members in the 34^th Annual General
Meeting held on 28^th August, 2023. Currently, there is no officer
designated as COO.

Further, in terms of the Regulation 17 (4) of the SEBI (LODR),
2015 the Company has adopted a succession planning policy
for its Key Managerial and Senior Management personnel which
has been hosted on the website of the Company on the below
mentioned link:

https://www.lichousing.com/static-assets/pdf/Policv
on Succession Planning.pdf?crafterSite=lichfl-corporate-
website-cms&embedded=true

APPOINTMENTS / RESIGNATIONS OF DIRECTORS:
Appointments:

Shri Anil Kaul (DIN: 00644761)

As per the recommendation of the Nomination and
Remuneration Committee, which undertook process of due
diligence, and considered the candidature to be suitable and
eligible based on evaluation, qualification, expertise, track
record, integrity and 'fit and proper' criteria, the Board at its
meeting held on 15^th May, 2024 approved the appointment
of Shri Anil Kaul as an Additional Director (Non-Executive
Independent) for a period of five consecutive years, not liable
to retire by rotation. The resolution approving the appointment
of the Independent Director was passed by the shareholders on
12^th July, 2024 through Postal Ballot.

Shri Masil Jeya Mohan (DIN: 08502007)

As per the recommendation of the Nomination and Remuneration
Committee, which undertook process of due diligence, and
considered the candidature to be suitable and eligible based on

evaluation, qualification, expertise, track record, integrity and
'fit and proper' criteria, the Board at its meeting held on 2^nd June,
2025 approved the appointment of Shri Masil Jeya Mohan as an
Additional Director (Non-Executive Independent) for a period of
five consecutive years, not liable to retire by rotation subject to
the approval of the shareholders to be obtained in the ensuing
36^th Annual General Meeting of the Company.

Shri T C Suseel Kumar (DIN: 06453310)

As per the recommendation of the Nomination and Remuneration
Committee, which undertook process of due diligence, and
considered the candidature to be suitable and eligible based on
evaluation, qualification, expertise, track record, integrity and
'fit and proper' criteria, the Board at its meeting held on 2^nd June,
2025 approved the appointment of Shri T C Suseel Kumar as an
Additional Director (Non-Executive Independent) for a period of
five consecutive years, not liable to retire by rotation subject to
the approval of the shareholders to be obtained in the ensuing
36^th Annual General Meeting of the Company.

Shri Ratnakar Patnaik (DIN: 10283908)

The Company received nomination from LIC of India for
appointment of Shri Ratnakar Patnaik on the Board of the
Company. The Nomination and Remuneration Committee
undertook process of due diligence, and considering the
candidature to be suitable and eligible based on evaluation,
qualification, expertise, track record, integrity and 'fit and
proper' criteria recommended the appointment of Shri Ratnakar
Patnaik and based on which the Board through resolution by
circulation dated 13^th June, 2025 approved the appointment of
Shri Ratnakar Patnaik as Additional Non-Executive Director,
liable to retire by rotation subject to the approval of the
shareholders to be obtained in the ensuing 36^th Annual General
Meeting of the Company.

Reappointment of Independent Directors for Second
Term

(a) Shri Kashi Prasad Khandelwal (DIN: 00748523)

Shri Kashi Prasad Khandelwal being eligible for
reappointment for second term of five consecutive years,
was reappointed as an Additional Director (Independent
Category) by the Board with effect from 1^st July, 2024 for
second term of five consecutive years up to 30^th June,
2029 and his reappointment as the Independent Director
was approved by the members in the 35^th Annual General
Meeting of the Company held on 30^th August, 2024.

(b) Shri Sanjay Kumar Khemani (DIN: 00072812)

Shri Sanjay Kumar Khemani being eligible for

reappointment for second term of five consecutive years,
was reappointed as an Additional Director (Independent
Category) by the Board with effect from 1^st July, 2024 for
second term of five consecutive years up to 30^th June,

2029 and his reappointment as the Independent Director
was approved by the members in the 35^th Annual General
Meeting of the Company held on 30^th August, 2024.

Cessations:

1. Dr. Dharmendra Bhandari (DIN: 00041829)

Dr. Dharmendra Bhandari ceased to act as the
Non-Executive Independent Director of the Company
with effect from 18^th August, 2024 due to completion
of his second term of consecutive five years as an
Independent Director.

2. Shri Jagganath Mukkavali (DIN: 10090437)

Shri Jagganath Mukkavali ceased to be the Non-Executive
Director with effect from 30^th May, 2025 on account of his
superannuation from the services of LIC of India.

3. Shri Siddharth Mohanty (DIN: 08058830)

Shri Siddharth Mohanty ceased to be the Non-Executive
Director and Chairman on the Board of the Company with
effect from 7^th June, 2025 on account of his superannuation
from the services of LIC of India.

4. Shri V K Kukreja (DIN: 01185834)

Shri V K Kukreja ceased to act as the Non-Executive
Independent Director of the Company with effect from
30^th June, 2025 due to completion of his second term of
consecutive five years as an Independent Director.

DIRECTOR RETIRING BY ROTATION:

Shri Akshay Rout (DIN: 08858134) who has been longest in
office would be retiring by rotation at the ensuing Annual
General Meeting and is eligible for re-appointment.

APPOINTMENTS / RESIGNATION OF THE KEY
MANAGERIAL PERSONNEL:

Shri Tribhuwan Adhikari, Managing Director & CEO,
Mr. Lokesh Mundhra, Chief Financial Officer and
Ms. Varsha Hardasani, Company Secretary & Compliance Officer,
are the Key Managerial Personnel (KMP) as per the provisions of
the Companies Act, 2013.

The following changes took place in the positions of the KMPs:

Cessation of Shri Sudipto Sil as Chief Financial Officer

Shri Sudipto Sil ceased to be the Chief Financial Officer of
the Company with effect from 17^th April, 2025 on account
of his transfer and redesignation as the Senior Deputy
Regional Manager, Marketing at the Western Regional Office
of the Company.

Appointment of Shri Lokesh Mundhra

Shri Lokesh Mundhra was appointed as the Chief Financial
Officer (CFO) of the Company with the approval of the Board of
Directors in their Board Meeting held on 17^th April, 2025.

COMMITTEES OF THE BOARD:

The Company has various Committees which have been
constituted as a part of the best corporate governance practices
and in compliance with the requirements of the relevant
provisions of applicable laws and statutes.

The Company has the following Committees of the Board:

I) Audit Committee

II) Stakeholders Relationship Committee

III) Nomination and Remuneration Committee

IV) CSR Committee

V) Risk Management Committee

VI) Executive Committee

VII) Debenture Allotment Committee

VIII) Strategic Investment Committee

IX) IT Strategy Committee

X) Preferential Allotment Committee**

XI) Investment Committee*

XII) Committee for approval of issuance of Duplicate Share
Certificate(s)*

XIII) ESG Committee

XIV) Fraud Monitoring Committee

XV) Settlement Committee

** Note: The Preferential Allotment Committee is an event based
Committee which had been constituted for the limited purpose of
allotment of the Equity Shares on private placement basis to the
promoters on 8^th September, 2021.

*Note: The Investment Committee is an event based Committee which
has been constituted to meet only in case any investment proposals
needs to be considered.

*Note: Committee for approval of issuance of Duplicate Share
Certificate® has only been constituted to sign and approve the request
for issuance of Duplicate Share Certificate®. The approval takes place
through circulation of the relevant documents to the signing authorities
based on their availability. No physical meeting of the said Committee
is generally held.

Composition of Audit Committee is as follows:

$Shri V K Kukreja ceased to act as an Independent Director of the
Company, due to completion of his 2^nd consecutive term of 5 years each
on the close of business hours of 29^th June, 2025

*Shri Anil Kaul was appointed as the member of the Committee w.e.f.
15^th May, 2024 on account of reconstitution of the Committee.

# Shri Masil Jeya Mohan has been appointed as an Additional Independent
Director for a term of 5 years w.e.f. 2^nd June, 2025 and his appointment
as a Director shall be subject to the approval of the shareholders in the
ensuing Annual General Meeting of the Company.

There is no instance, during the financial year, when the
recommendations of Audit Committee have not been
accepted by the Board.

The details with respect to the compositions, powers, roles,
terms of reference etc. of relevant committees are given in
detail in the Report on Corporate Governance which forms part
of this Report.

SUBSIDIARIES AND GROUP COMPANIES

As on 31^st March, 2025, the Company has four Subsidiaries
namely, LICHFL Care Homes Limited, LICHFL Asset Management
Company Limited, LICHFL Trustee Company Private Limited
and, LICHFL Financial Services Limited. The Consolidated
financial statements incorporating the results of all the
subsidiaries of the Company for the year ended 31^st March, 2025,
are attached along with the statement pursuant to Section 129
of the Companies Act, 2013, with respect to the said subsidiaries.
Brief write up including the performance and financial position
of each of the subsidiaries are provided as under:

1. LICHFL Care Homes Limited

LICHFL Care Homes Limited, a wholly owned subsidiary
of LIC Housing Finance Limited, was incorporated on
11^th September, 2001. The basic purpose of incorporating
the Company was to establish and operate 'assisted living
community centres' for the senior citizens.

During the FY 2024-25, the Company reported Losses
of ' 3.74 crore.

The Company has successfully completed a project at
Bangalore in two Phases and Jeevan Anand Project
at Bhubaneswar.

Further, the Company is in the process of developing new
Care homes project at Jaipur, Rajasthan and Aluva, Kerala.
The Company is also in the process of purchasing land at
various locations across the Country. Going forward, these
projects are likely to further improve the overall operations
and stability of the Company.

2. LICHFL Asset Management Company Limited

The Company was incorporated on 14^th February 2008.
The Company is in the business of managing, advising,
administering Private Equity Funds including Venture
Capital Fund (VCF) and Alternate Investment Fund (AIF).

The Company was appointed as Investment Manager in
2010 to raise and manage the LICHFL Sponsored, LICHFL
Urban Development Fund (LUDF). The Company has raised
total commitments of '529.35 crore from Banks, Financial
Institutions, Corporates and HNIs as against the targeted
size of '500 crore and announced financial closure on
30^th March, 2013. The Company has deployed ' 461.30
crore in 9 Portfolio Companies, acquisition or operation
of affordable / mid income housing, related infrastructure
and Hospitals. Against total of 9 portfolio investments of

' 461.30 crore, portfolio level IRR achieved on basis of
cash received of ' 677.23 crore from 7 complete exits and
1 partial exit, amounts to 16.74%. This excludes amounts to
be received from 2 subsisting portfolio companies.

The Company also launched an Alternative Investment
Fund (AIF) namely LICHFL Housing & Infrastructure Fund
(LHIF), with a total corpus of '1000 crore including Green
Shoe Option (GSO) of '250 crore and the focus of the Fund is
on Affordable Housing and Property backed Infrastructure
in sectors which include Educational Institutions, Hospitals,
Industrial Parks & Warehouses. As on 31^st March 2025, the
total Contribution Agreements signed in respect of LICHFL
Housing & Infrastructure Fund is ' 812 crore of which the
drawable amount is ' 765 crore. Fund has made cumulative
drawdown call of ' 693.62 crore (Inc. ' 66.92 crore of
fees and expenses). The Fund has received ' 439.98
crore from Portfolio Companies (including ' 26.06 crore
received as management fees and ' 1.41 crore as other fee
income). Distributed to Investors ' 412.51 crore on basis of
investments made, distribution received and valuation, the
Fund is poised to achieve an IRR of 20%.

The Company has also launched another fund which
was registered with SEBI - LICHFL Real Estate Debt
Opportunities Fund - I on 30^th March 2021 under AIF
Category II of SEBI Alternate Investment Fund Regulations
2012 (AIF). The Fund is having a target corpus of ' 3,000
crore (Base corpus of ' 2,000 crore plus ' 1,000 crore as
green shoe option). The Fund is envisaged to be raised
from both Domestic and Overseas Investors. The focus
sector of the Fund is Housing. The Fund has received
commitment of 300 crore from LIC of India, 450 crore
from LIC Housing Finance Limited, 65 crore from Indian
Bank and IDBI Bank.

During the FY 2024-25, the Company earned a Profit before
Tax (PBT) of ' 11.11 crore and Profit after Tax (PAT) stood at
' 8.72 crore. The Company has recommended dividend @
35% for FY 2024-25 on it's paid-up share capital.

3. LICHFL Trustee Company Private Limited

The Company was incorporated on 5^th March, 2008.
The Company is undertaking the business of trusteeship
services for Venture Capital Funds (VCFs) and Alternative
Investment Funds (AIFs).

The Company was appointed as Trustee in 2010 for LICHFL
Fund and further appointed LICHFL Asset Management
Company Limited (LICHFL AMC) as Investment Manager
for the Fund. In 2010 the Company had registered LICHFL
Fund with SEBI as Venture Capital Fund (VCF) under
the SEBI (Venture Capital Funds) Regulations, 1996.
LICHFL Urban Development Fund achieved its financial
closure with '529.35 crore on 30^th March, 2013.

The Company was appointed as Trustee in 2017 for LICHFL
Housing & Infrastructure Trust (LHIT) and further appointed

LICHFL AMC Ltd. as Investment Manager for LICHFL
Housing and Infrastructure Fund (LHIF). The Company had
received registration for LHIF on October 2017 from SEBI
under Alternative Investment Fund Regulations, 2012 as
Category - I Infrastructure. LICHFL AMC launched LICHFL
Housing & Infrastructure Fund (LHIF) in October 2017
and achieved initial closing on 31^st March 2018. The Fund
announced its final closing on 31^st March 2021.

The Company has been recently appointed as Trustee
on 30^th March 2021 for a New Fund registered with
SEBI - LICHFL Real Estate Debt Opportunities Fund - I
on 30^th March 2021 and appointed LICHFL AMC Ltd.
as Investment Manager for the Fund.

During the FY 2024-25, the Company earned a Profit
before Tax (PBT) of ' 0.28 crore and Profit after Tax (PAT)
stood at ' 0.21 crore.

4. LICHFL Financial Services Limited

LICHFL Financial Services Limited, a wholly owned
subsidiary of LIC Housing Finance Limited, was
incorporated on 31^st October, 2007, for marketing of
housing loans, insurance products (Life and General
Insurance), mutual funds, fixed deposits, credit cards.
It became operational in March, 2008 and at present, it has
45 offices spread across the country.

The vision of the Company is "SARVESHAM POORNAM
BHAVATU” - to provide complete financial solutions”
to secure not only the present but also the future of the
customer and his family. In this endeavour, the marketing
officials assist at every step - right from financial planning
to manage every aspect of investment, both for the
short & long term.

At present, the Company distributes Life Insurance
products of LIC of India, Home Loans & Fixed Deposits
of LIC Housing Finance Limited, Mutual Funds of various
fund houses, General Insurance products of United
India Insurance Company Limited, Tata AIG General
Insurance Company Limited and HDFC ERGO General
Insurance Company Ltd., Health Insurance products of
Aditya Birla Health Insurance Co. Ltd. and Star Health
and Allied Insurance Co. Ltd., and Point of Presence for
National Pension System (NPS). More business verticals
will be added depending on market opportunities and
customer needs.

The Company has earned a Profit before Tax (PBT) of
' 28.45 crore and Profit after Tax (PAT) stood at ' 21.53
crore for the FY 2024-25 and recommended dividend @
30% for FY 2024-25 on paid up share capital of ' 9.50 crore.

The Company is striving to improve its Performance across
all Business verticals in the coming years.

Name/s of Company/ies which have ceased / become
subsidiary/joint venture/associate: None

AS ON 31ST MARCH, 2025, THE COMPANY HAS TWO
ASSOCIATE COMPANIES NAMELY LIC MUTUAL FUND
ASSET MANAGEMENT COMPANY LIMITED AND LIC
MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED.

The Company does not have any material subsidiary as defined
under Regulation 16 and Regulation 24 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.

The Annual Report which consists of the financial statements
of the Company on standalone as well as consolidated financial
statements of the group for the year ended 31^st March 2025, has
been sent to all the members of the Company where E-Mail IDs
are registered with the Company. Physical copies of the report
shall be provided only upon specific requests. It does not contain
Annual Reports of Company's subsidiaries. The Company will
provide Annual Report of all subsidiaries upon receipt of request
by any member of the Company. These Annual Reports are also
available on Company's website viz www.lichousing.com.

No significant and material orders were passed by the regulators
or courts or tribunals impacting the going concern status as also
the operations of the Subsidiary Companies in future.

1. LIC Mutual Fund Asset Management Company
Limited (LICMFAMC)

LIC Mutual Funds was incorporated on 20^th April 1994.
LIC Housing Finance Limited holds 33.52% equity in this
entity. Being an associate company of India's premier
and most trusted brand, LIC Mutual Fund is one of the
well-known players in the asset management sphere.
With a systematic investment discipline coupled with a
high standard of financial ethics and corporate governance,
LIC Mutual Fund is emerging as a preferred Investment
Manager amongst the investor fraternity.

LIC Mutual Fund endeavours to create value for its investors
by adopting innovative and robust investment strategies,
catering to all segments of investors. LIC Mutual Fund
believes in providing delight to its customers and partners
by way of superior investment experience and unparalleled
service thereby truly bringing them Khushiyaan, Zindagi Ki.

For the FY 2024-25, the Company earned a Profit before
Tax (PBT) of '9.30 crore and Profit after Tax (PAT) stood
at '8.53 crore.

2. LIC Mutual Fund Trustee Company Private Limited

LIC Mutual Fund Trustee Private Limited (Trustee Company)
is the Trustee to the Mutual Fund, LICMFAMC. LIC Housing
Finance Limited holds 35.30% equity in this entity. LIC of
India is the Sponsor of the Mutual Fund. The AMC either
directly or through third party service providers engaged
by the AMC (Service Providers) such as the Registrar and
Transfer agents collects, receives, possesses, stores, deals
or handles information received from investors/client/
customers whether existing or prospective.

The Company has earned a Profit before Tax (PBT) of
' 28.52 lakh and Profit after Tax (PAT) stood at ' 21.52 lakh
for the FY 2024-25.

FINANCIAL DETAILS OF SUBSIDIARIES

Pursuant to the provisions of Section 129(3) of the Companies
Act, 2013 ('the Act'), a statement containing salient features
of the financial statements of subsidiaries, joint venture and
associate companies in Form AOC-1 is attached as Annexure-6.
The separate financial statements of the subsidiaries are
available on the website of the Company and can be accessed
at https://www.lichousing.com/subsidiarv-financials.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR
ADEQUACY:

The Company has established a robust framework of internal
financial controls, which are both adequate and operating
effectively. These controls are designed in alignment with the
nature, scale, and complexity of the Company's operations.

The Board of Directors affirms that the Company maintains a
well-structured internal control system, proportionate to the
business's size and operational dynamics. Comprehensive
Standard Operating Procedures (SOPs) and Risk Control
Matrices are in place, aimed at providing reasonable assurance
regarding the reliability of financial reporting and compliance
with applicable laws and regulations. These mechanisms are
subject to ongoing monitoring and periodic updates to ensure
continued relevance and effectiveness.

To further reinforce its internal control environment, the
Company regularly engages independent external experts
to conduct objective assessments of the control systems.
Recommendations and best practices identified through
these reviews are evaluated by the management and the
Audit Committee and are diligently implemented to drive
continuous improvement.

A detailed note on Internal Financial Controls is provided as
Annexure 1 to this report.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

The Company has instituted a Whistle Blower Policy, which
offers individuals a formal mechanism to report concerns related
to reportable matters as outlined in the policy. This framework
encourages the reporting of genuine concerns or grievances
and includes robust safeguards to protect whistle blowers
from any form of retaliation. It also ensures direct access to
the Chairman of the Audit Committee, thereby reinforcing the
integrity of the process.

The Whistle Blower Policy, which forms part of the Company's
Vigil Mechanism, is subject to periodic review—either annually
or in accordance with the regulatory updates, as applicable.
During the year, the Board undertook a review and approved
modifications to the policy. The revised policy is designed to
further strengthen the existing system, fostering a secure and

transparent environment where individuals feel empowered
to report issues in confidence, with assured protection
against victimisation.

During the period under review no concerns or grievances were
reported under Vigil Mechanism/ Whistle Blower Policy.

EMPLOYEE STOCK OPTION:

The company does not have any Employee stock option scheme.

EMPLOYEE REMUNERATION:

Disclosure pertaining to remuneration and other details as
required under Section 197(12) of the Companies Act, 2013 read
with Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to
the median remuneration of the employees of the
Company for the financial year:

* Remuneration is not paid to Non-Executive Directors (including
Independent Directors) other than by way of sitting fees for
attending meetings of the Board and Committees of the Board.

b. The percentage increase in remuneration of each
director, Chief Executive Officer, Chief Financial
Officer, Company Secretary in the financial year:

* No remuneration is paid to Non-Executive Directors (including
Independent Directors) other than sitting fees for attending
meetings of the Board and Committees of the Board.

* Remuneration paid to Managing Director & CEO includes the
salary for F.Y. 2024-25, Wage Revision Arrear Payment from
August, 2022 and PLLI for FY 2023-24

** Remuneration of Company Secretary & CFO includes Salary for
F. Y 2024-25, Wage Revision Arrear Payment from August, 2022
and PLLI 2023-24

c. The percentage increase in the median
remuneration of employees in the financial year:

46.42%

d. The number of permanent employees on the rolls
of the Company:

2542

e. Average percentile increase already made in the
salaries of employees other than managerial
personnel in the financial year and its comparison
with the percentile increase in the managerial
remuneration and justification thereof and point
out if there are any exceptional circumstances for
increase in the managerial remuneration:

Increase in managerial remuneration for the year was
24.43%. The average annual increase in the salaries of the
employees other than managerial personnel during the
year was 46.42%.

f. Affirmation that remuneration is as per the
Remuneration Policy of the Company:

The Company affirms that the remuneration payable is as
per the Remuneration Policy of the Company.

During the year the Company has not engaged any
employee drawing remuneration exceeding the limit
specified under Section 197(12) read with Rule 5(2) of
the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.

In terms of Section 136(1) of the Companies Act, 2013
read with Rule 5(2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the
Board's Report is being sent to all the shareholders of the
Company excluding the annexure containing names of
the top ten employees in terms of remuneration drawn.
Any shareholder interested in obtaining a copy of the said
annexure may write to the Company at: The Company
Secretary, LIC Housing Finance Limited, Corporate Office,
131 Maker Towers, 'F' Premises, 13^th Floor, Cuffe Parade,
Mumbai - 400 005.

COMPLIANCE UNDER THE SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013:

Pursuant to the amendment made in the Companies
(Accounts) Second Amendment Rules, 2025 through
MCA Circular dated May 30, 2025 and According to
the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act,
2013, your Company has in place a Policy on Prevention,
Prohibition & Redressal of Sexual Harassment of Women
at Workplace and has a robust mechanism to redress
the complaints reported thereunder. The Internal
Committees have been constituted at 9 Regional offices

and at Corporate Office which comprises of internal and
external members who are having sufficient experience in
the subject field.

The Committee consists of 3 internal members (2 female
and 1 male) and 1 independent member (female).

Your Company is committed to provide and promote safe
and healthy environment to all its employees without any
discrimination. Your Company on a regular basis sensitizes
its employees on prevention of sexual harassment through
various workshops and awareness programmes.

Pursuant to the provisions of Section 22 of the Sexual
Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013, the complaints
received thereunder and the details relating thereto
are as follows:

(a) Number of complaints received in the year: One

(b) Number of complaints disposed of during the year: One

(c) Number of cases pending more than ninety days: Nil

(d) Number of workshops or awareness programme
against sexual harassment carried out: Nil

(e) Nature of action taken by the employer or
district officer: Nil

I t may be noted that the Company has Zero tolerance
towards any action on the part of any executive / staff
which may fall under the ambit of 'Sexual Harassment' at
workplace and is fully committed to uphold and maintain
the dignity of every woman working in the Company.

COMPLIANCE UNDER THE MATERNITY BENEFIT
ACT, 1961:

Pursuant to the amendment made in the Companies
(Accounts) Second Amendment Rules, 2025 through MCA
Circular dated May 30, 2025, we state that your Company
has complied with the applicable provisions of the Maternity
Benefit Act, 1961. All eligible women employees have
been extended the benefits as prescribed under the Act.
The Company remains committed to supporting working
mothers and promoting a gender-inclusive workplace.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY
REGULATORS/ EXCHANGES

During the year, no significant or material orders were
passed by the regulators or courts or tribunals that would
impact the going concern status or operations of the
Company in the future.

HUMAN RESOURCES

High-performing, productive employees are essential to
the success of the Company. To support this, the Company
is committed to aligning its human resource practices
with overall business objectives, enhancing employee
knowledge and skills, and fostering a supportive work
environment that promotes a strong sense of ownership
and engagement among team members. HR practices are
assessed to identify areas for improvement.

The Company deeply values and appreciates the
dedication and contributions of its employees, which have
played a vital role in driving performance throughout the
year. To strengthen its workforce, the Company undertook
strategic recruitment across various roles including
recruitment in the cadre with CTC structure which was
newly introduced in the Financial Year 2024-25 and
provided growth opportunities by promoting deserving
employees to positions of greater responsibility.

In addition to fixed remuneration, employees were offered
a comprehensive package of perquisites and benefits.
A robust performance-linked incentive system was also in
place to recognize and reward individuals who achieved
or exceeded set performance benchmarks. In alignment
with its commitment to attract, develop, and retain top
talent, the Company organized and sponsored a range
of training programs, seminars, and conferences aimed
at enhancing employee skills and operational knowledge.
Furthermore, wellness initiatives were conducted across
multiple office locations to promote the physical and
mental well-being of employees, reflecting the Company's
holistic approach to employee care.

Employee relations remained cordial, and the work
atmosphere remained congenial during the year.
The Human Resource Department at your Company is
committed to further improving employee engagement
through various new initiatives.

CYBER SECURITY

I n response to evolving operational needs, organizations
have adopted practices such as social distancing and
remote working, resulting in an increased reliance on digital
technologies. To safeguard our digital infrastructure, we
have implemented a comprehensive suite of advanced
security controls, processes, and technologies designed
to protect our networks, systems, and data from cyber
threats, unauthorized access, and potential damage.
By leveraging industry-leading threat analytics and
cybersecurity tools—including honeypots, firewalls, and
other proactive measures—we aim to effectively detect,
prevent, and mitigate both internal and external risks.

Our Cybersecurity Policy serves as a foundation for
promoting awareness and adherence to best practices
across the organization, ensuring our data and infrastructure
remain secure. Additionally, we invest in the continuous
development of our IT team by offering ongoing training
opportunities through internal forums and partnerships
with external academic institutions. This commitment to
professional growth empowers our team to stay ahead

of emerging cyber threats and reinforces our efforts to
protect the company's digital assets on a daily basis.

DETAILS OF APPLICATION MADE OR ANY
PROCEEDINGS PENDING UNDER THE INSOLVENCY
AND BANKRUPTCY CODE, 2016 (31 OF 2016)
DURING THE YEAR ALONG WITH THEIR STATUS
AS AT THE END OF THE FINANCIAL YEAR

There is no application made or pending against the
Company under the Insolvency and Bankruptcy Code,
2016 (31 of 2016).

AWARDS AND RECOGNITIONS:

I n the dynamic landscape of business, recognition serves
as a compass, guiding us toward excellence. As we reflect
on the past year, we take immense pride in the accolades
bestowed upon us. From being named the "Most Trusted
Housing Finance Company” by the Radio City "Mumbai
Icon Awards - 2025”, our journey has been marked by
triumphs and milestones. A testament to our commitment
to transparency and accountability.

During the year the Company was awarded with
"Scroll of Honour" by the Navabharat Navarashtra
"Maharashtra 1^st Conclave 2024".

Further the Company also received following awards at
the 7^th Naional Summit & Awards by ASSOCHAM:-

1. Awarded as Winner for the award category CB
Private Placement - Private Issuer of the Year (for
issuance of Corporate Bonds)

2. Awarded as Runner-up for the award category CP -
Issuer of the Year (for issuance of Commercial Papers)

As part of the continued efforts of the Company in
marking the social impact the Company received ICC
Social Impact Award 2025 for the HRIDAY Project in the
Rural Development Category.

The Company was conferred the "Best Housing Finance
Company” award by the National Housing Bank at the 1^st
Edition of the Housing and Housing Finance Excellence
Awards 2024-25. This recognition underscores the
Company's continued commitment to excellence,
innovation, and customer-centricity in the housing
finance sector.

These honours fuel our passion to continue pushing
boundaries and delivering exceptional value to
our stakeholders.

ACKNOWLEDGMENTS

The Directors place on record their appreciation for
the advice, guidance and support given by the Life
Insurance Corporation of India, the National Housing
Bank, the Reserve Bank of India and all the bankers of the
Company. The Directors also place on record their sincere
thanks to the Company's clientele, lenders, investors and
members for their patronage. The Directors express their
appreciation for the dedicated services of the employees
and their contribution to the growth of the Company.

For and on behalf of the Board

Shri Ratnakar Patnaik
Additional Non-Executive Director
(LIC Nominee)
DIN: 10283908

Shri T Adhikari
Managing Director & Chief

Date: 1^st August, 2025 Executive Officer

Place: Mumbai DIN: 10229197