We have audited the accompanying Financial Statements of Bajaj Housing Finance Limited (hereinafter
referred as 'the Company'), which comprise the Balance Sheet as at 31 March 2025, the Statement of
Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement
of Changes in Equity for the year then ended, and notes to the financial statements, including a summary
of material accounting policies and other explanatory information (hereinafter referred to as 'the Financial
Statements').
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements gives the information required by the Companies Act, 2013 (the 'Act') in
the manner so required and give true and fair view in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,
2015, as amended,('Ind AS') and other accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2025, and its profit (including other comprehensive income), its
cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs),
as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the 'Code of Ethics' issued by the Institute of
Chartered Accountants of India ('ICAI') together with the ethical requirements that are relevant to our
audit of the Financial Statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of
Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for
our opinion on the Financial Statements.
2. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the Financial Statements for the financial year ended 31 March 2025. These matters were
addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report. We have fulfilled the
responsibilities described in the Auditors' responsibilities for the audit of the financial statements section
of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial
statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
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S.N. Key Audit Matters
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How our audit addressed the key audit matters
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1 Allowances for expected credit loss (ECL)
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Our Audit Approach
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As at 31 March 2025, the carrying value of loan
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We have examined the policies approved by the
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assets carried at amortised cost, aggregated
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Board of Directors of the Company that articulate
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H 99,512.86 crore (net of allowance for expected
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the objectives of managing each portfolio and
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credit loss H 577.86 crore) constituting approximately
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their business models. We have also verified the
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97% of the Company's total assets. Significant
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methodology adopted for computation of ECL ('ECL
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judgement is used in classifying these loan assets
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Model') that addresses policies approved by the Board
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and applying appropriate measurement principles.
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of Directors, procedures and controls for assessing
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ECL on such loan assets carried at amortised
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and measuring credit risk on all lending exposures
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cost is a critical estimate involving greater level
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carried at amortised cost. Additionally, we have
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of Management judgement. As part of our risk
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confirmed that adjustments to the output of the ECL
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assessment, we determined that the ECL on
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Model are consistent with the documented rationale
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such loan assets has a high degree of estimation
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and basis for such adjustments and that the amount
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uncertainty, with a potential range of reasonable
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of adjustments have been approved by the Audit
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outcomes for the standalone financial statements.
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Committee of the Board of Directors. Our audit
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The elements of estimating ECL which involved procedures related to the allowance for ECL included
increased level of audit focus are the following: the following, among others:
• Qualitative and quantitative factors used Testing the design and operating effectiveness of
in staging the loan assets carried at the following:
amortised cost;
• Completeness and accuracy of the EAD and the
• Basis used for estimating probabilities of classification thereof into stages consistent with
default ('PD'), loss given default ('LGD') and the definitions applied in accordance with the
exposure at default ('EAD') at product level with policy approved by the Board of Directors including
past trends; the appropriateness of the qualitative factors to
be applied;
• Judgements used in projecting economic
scenarios and probability weights applied to • Completeness, accuracy and appropriateness of
reflect future economic conditions; and information used in the estimation of the PD and
LGD for the different stages depending on the
• Adjustments to model driven ECL results to
nature of the portfolio;
address emerging trends. (Refer note no. 4.3, 9
and 50(c) to the financial statements). • Accuracy of the computation of the ECL estimate
including reasonableness of the methodology
used to determine macro-economic overlays and
adjustments to the output of the ECL model; and
Test of details on a sample basis in respect of
the following:
• Accuracy and completeness of the input data such
as period of default and other related information
used in estimating the PD;
• The mathematical accuracy of the ECL
computation by using the same input data as used
by the Company.
• Completeness and accuracy of the staging of the
loans and the underlying data based on which the
ECL estimates have been computed.
• Evaluating the adequacy of the adjustment after
stressing the inputs used in determining the output
as per the ECL model to ensure that the adjustment
was in conformity with the overlay amount
approved by the Audit Committee of the Company
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2 Information Technology (IT) Systems and
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Our Audit Approach
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Controls impacting financial controls
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The Company's key financial accounting and
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Key IT audit procedures performed included the
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reporting processes are highly dependent on
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following, but not limited to:
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information systems including automated controls
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in systems, such that there exists a risk that gaps
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• For testing the IT general controls, application
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in the IT control environment could result in the
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controls and IT dependent manual controls, we
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financial accounting and reporting records being
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involved IT specialists as part of the audit.
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misstated.
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• Obtained a comprehensive understanding
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Amongst its multiple IT systems, we scoped in
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of IT applications landscape implemented
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systems that are key for overall financial reporting.
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at the Company. It was followed by process
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Appropriate IT general controls and application
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understanding, mapping of applications to the
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controls are required to ensure that such IT systems
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; same and understanding financial risks posed by
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are able to process the data, as required, completely, people-process and technology.
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accurately and consistently for reliable financial
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reporting.
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S.N. Key Audit Matters
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How our audit addressed the key audit matters
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We have identified 'IT systems and controls' as
a key audit matter considering the high level of
automation, significant number of systems being
used by Management and the complexity of the
IT architecture and its impact on overall financial
reporting process.
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• Key IT audit procedures includes testing design
and operating effectiveness of key controls
operating over user access management (which
includes user access provisioning, de-provisioning,
access review, password configuration review,
segregation of duties and privilege access),
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change management (which include change
release in production environment are compliant
to the defined procedures and segregation of
environment is ensured), computer operations
(which includes testing of key controls pertaining
to backup, incident management and data centre
security).
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• System interface controls: This included testing
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that requests for access to systems were
appropriately logged, reviewed, and authorised.
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• In addition to the above, the design and operating
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effectiveness of certain automated controls, that
were considered as key internal system controls
over financial reporting were tested using
various techniques such as inquiry, review of
documentation/ record/ reports, observation,
and re-performance.
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3. Information other than the financial statements and Auditors' report thereon
The Company's Management and Board of Directors is responsible for the other information. The other
information comprises the information included in the Corporate Governance Report, which we obtained
prior to the date of this auditors' report and the Director's Report including annexures thereto, Management
Discussion & Analysis and Business Responsibility & Sustainability Report collectively referred to as 'Other
Information' but does not include the Financial Statements and our auditors' report thereon. These reports
are expected to be made available to us after the date of our auditors' report.
Our opinion on the Financial Statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the Financial Statements or our knowledge obtained during the course of our
audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditors' report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in regard to the information pertaining to Corporate
Governance obtained prior to the date of this auditors' report.
When we read the other information included in the above reports, which are expected to be made available
to us after the date of our auditors' report, if we conclude that there is material misstatement therein, we
are required to communicate the matter to those charged with governance and determine the actions
under the applicable laws and regulations.
4. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The financial statements have been approved by the Company's Board of Directors. The Company's
Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to
the preparation of these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the Company
in accordance with the Ind AS specified under section 133 of the Act and other accounting principles
generally accepted in India. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are also responsible for overseeing the Company's financial
reporting process.
5. Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with Standards on auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(ii) Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are
also responsible for expressing our opinion on whether the Company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
(iv) Conclude on the appropriateness of Management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the ability of the Company to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditors' report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors' report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(v) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements for the year ended 31 March 2025 and are
therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
6. Other Matter
The Financial Statements of the Company for the year ended 31 March 2024, were audited by the
predecessor joint auditors' who expressed an unmodified opinion on those financial statements vide their
report dated 24 April 2024.
Our opinion is not modified in respect of this matter.
7. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor's report) Order, 2020 ('the Order') issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the 'Annexure A' a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(ii) As required by section 143(3) of the Act, based on our audit on financial statements we report that:
a. We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the
Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account;
d. In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under section
133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of written representations received from the directors as on 31 March 2025, taken on
record by the Board of Directors, none of the directors is disqualified as on 31 March 2025, from
being appointed as a director in terms of section 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls with reference to the Financial
Statements of the Company and the operating effectiveness of such controls, we request you to
refer to our separate Report in 'Annexure B' to this report;
g. With respect to the other matters to be included in the Auditors' Report in accordance with the
requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our
information and according to the explanations given to us, the remuneration paid by the Company
to its directors during the year is in accordance with the provisions of section 197 read with
Schedule V to the Act;
h. With respect to the other matters to be included in the Auditors' Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best
of our information and according to the explanations given to us;
i. The Company has disclosed the impact of pending litigations on the financial position in its
financial statements - Refer Note 41 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts -
Refer Note 7 to the financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company;
iv. The Management has represented that to the best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),
including foreign entities ('Intermediaries'), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Company
('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.;
v. The Management has represented that to the best of its knowledge or belief, other than as
disclosed in the note 52 to the financial statements, no funds have been received by the
Company from any person(s) or entity(ies), including foreign entities ('Funding Parties'), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party ('Ultimate Beneficiaries') or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
vi. Based on audit procedures that have been considered reasonable and appropriate in the
circumstances; nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under clause (iv) and (v)
above, contain any material misstatement.
vii. The Company has not declared or paid any dividend during the year and as such the compliance
of section 123 of the Act has not been commented upon.
viii. According to the information and explanation given to us and based on our examination which
included test checks, the Company has used an accounting software for maintaining its books
of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the software. Further,
during the course of our audit we did not come across any instance of the audit trail feature being
tampered with.
Pursuant to the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, which came
into effect from 1 April 2024, and in accordance with the requirements of Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014, we report that, based on our audit procedures and
the information and explanations provided to us, the Company has duly maintained and preserved
the audit trail, as per the applicable statutory requirements for record retention.
For Singhi & Co. For Mukund M. Chitale & Co.
Chartered Accountants Chartered Accountants
Firm Registration Number: 302049E Firm Registration Number: 106655W
Amit Hundia Saurabh Chitale
Partner Partner
Membership Number: 120761 Membership Number: 111383
UDIN: 25120761BMOTHA5868 UDIN: 25111383BMKWMP1135
Place: Pune Place: Pune
Date: 23 April 2025 Date: 23 April 2025
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