Auditor Report of Jana Small Finance Bank Ltd.

Mar 31, 2025

We have jointly audited the accompanying financial statements of Jana Small Finance Bank Limited ("the
Bank"), which comprise the Balance Sheet as at March 31 2025, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements give the information required by the Banking Regulation Act, 1949 as well as Companies
Act, 2013, as amended ("the Act") and the circulars and guidelines issued by Reserve Bank of India in the
manner so required for banking companies and give a true and fair view in conformity with the accounting
principles generally accepted in India, including the accounting standards specified under section 133 of the
Act read with relevant rules issued thereunder, as applicable to banks, of the state of affairs of the Bank as at
March 31, 2025, its profit and its cash flows 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
''Auditor''s Responsibilities for the Audit of the Financial Statements'' section of our report. We are independent
of the Bank in accordance with the ''Code of Ethics'' issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements for the financial year ended March 31, 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. For each matter below, our description of how our audit
addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the Auditor''s 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.

Identification of Non-performing advances and provisioning of advances:(refer note 3.C of Schedule 17 and
Schedule 18.7 (a) to the Financial Statements)

Advances constitute a significant portion of the Bank''s Our audit procedures included, among others the
assets and the quality of these advances is measured in following:

terms of ratio of Non-Performing Advances ("NPA”) to • Considered the Bank''s policies for NPA identification,

the gross advances of the Bank. As at March 31, 2025, classification and provisioning in assessing

the Gross Advances of the Bank was '' 27,650.89 crores, compliance with the IRAC norms

Gross NPA of the Bank was ''749.60 crores and Gross • Obtained an understanding and performed walk

NPA ratio of the Bank was 2.71%. through of key process controls around identification

of NPAs, classification and provisioning

The Reserve Bank of India''s ("RBI”) guidelines on Income • Evaluated the design and operating effectiveness of

recognition and asset classification and provisioning key controls (including application controls) around

pertaining to advances dated April 01, 2024("IRAC identification of NPAs, classification of loans in the

norms”) prescribes the prudential norms for identification respective asset classes viz., standard, sub-standard,

and classification of NPAs and the minimum provision doubtful and loss, valuation of security including

required for such assets including restructuring. collateral with reference to RBI regulations

• Performed account statement reviews on sample

Given the volume and variety of loans, judgement basis for account slippages and upgrades and

is involved in the application of RBI regulations for identified customer accounts availing more than

classification of loans as NPA. In view of the significance one loan from the Bank and test checked that all

of this area to the overall audit of financial statements, it loans availed by a delinquent customer are classified

has been considered as a key audit matter appropriately

• Performed analytical procedures on various
financial and non-financial parameters to test the
completeness of accounts identified as NPA

• Performed inquiries with the credit and risk
departments to ascertain if there were indicators
of stress or an occurrence of an event of default in
a particular loan account or any product category
which needs to be considered as NPA

• Obtained management analysis for the additional
provision created during the year and evaluated
the management estimates and assumptions used
considering our understanding of the risk profiles of
the customer of the Bank

• Performed test of details to test on provisioning rates
applied for respective asset classes in lines with the
Bank''s policies

• Tested the arithmetical accuracy of computation of
provision for advances

• Assessed disclosures included in the financial
statements in respect of asset classifications and
provisioning, including specific disclosures made
with regard to RBI regulations

• Tested on a sample basis that the restructuring of
loans done during the period as per IRAC norms was
approved and implemented and provisions made
on such restructured loans in accordance with the
Bank''s Board approved policy and the IRAC norms.

Information Technology ("IT") Systems and Controls

The reliability and security of IT systems plays a key role in the business operations of the Bank. Since large volume of transactions are processed daily, the IT controls are required to ensure that applications process data as expected and that changes made to applications are made in an appropriate manner. These systems also play a key role in the financial accounting and reporting process of the Bank. Our areas of audit focus included user access management, developer access to the production environment and changes to the IT environment across applications, networks , databases and operating systems as these are key to ensuring IT dependent and application based controls are operating effectively. Due to the pervasive nature and complexity of the IT environment, we have ascertained IT systems and controls as a key audit matter.

Our audit procedures included the following: • For testing the IT general controls, application controls and IT dependent manual controls relevant for financial reporting, we included IT specialists as part of the audit team. The IT specialists also assisted in testing of the information produced by the Bank''s IT systems • Tested the design and operating effectiveness of the Bank''s IT access controls over the information systems that are critical to financial reporting • Tested other IT general controls (changes management and aspects of IT operational controls) • Inspected requests of changes to systems for appropriate approval and authorization. Further, considered the control environment relating to various interfaces, configuration and other application controls identified as key to our audit • Tested the design and operating effectiveness of certain automated controls that were considered as key internal controls over financial reporting • Instances where deficiencies were identified, tested compensating controls or performed alternate procedures.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR''S REPORT
THEREON

The Bank''s Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the financial statements and our auditor''s
report thereon. The Annual report is expected to be made available to us after the date of this auditor''s 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 such other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.

When we read the Annual report, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance and take appropriate action as applicable
under relevant laws and regulations.

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

The Bank''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 and cash flows of the Bank in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under section 133 of the Act read with relevant rules issued
thereunder and the provisions of section 29 of the Banking Regulation Act, 1949 and circulars, guidelines
and directions issued by the Reserve Bank of India (RBI) from time to time. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and the design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the 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 Bank''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 Bank or to cease operations, or has
no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Bank''s financial reporting process.

AUDITOR''S 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 auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a 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 SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:

• 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.

• Obtain an understanding of internal control 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 Bank has adequate internal financial controls with reference to
financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Bank''s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s
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
auditor''s report. However, future events or conditions may cause the Bank to cease to continue as a
going concern.

• 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 financial year ended March 31, 2025 and
are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

OTHER MATTER

The financial statements of the Bank for the year ended March 31, 2024, were jointly audited by Brahmayya

& Co. and M M Nissim & Co LLP (the ''Joint Predecessor Auditors'') who expressed an unmodified opinion on

those financial statements on April 29, 2024.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement for the year ended March

31, 2025, have been drawn up in accordance with the applicable accounting standards prescribed

under section 133 of the Act read with relevant rules issued thereunder, the relevant provisions of the

Banking Regulation Act, 1949, RBI Guidelines and other accounting principles generally accepted in India.

2. As required by sub section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:

a. We have obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purpose of our audit and have found them to be satisfactory;

b. The transactions of the Bank, which have come to our notice, have been within the powers of the
Bank; and

c. The financial accounting systems of the Bank are centralized and therefore, accounting returns for the
purpose of preparing financial statements are not required to be submitted by its branches; we have
visited 25 branches for the purpose of our audit.

3. As required by Section 143(3) of the Act, we report, that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Bank so far as it
appears from our examination of those books except for the matters stated in the paragraph (i)(vi)
below on reporting under Rule 11(g);

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account;

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified
under Section 133 of the Act read with relevant rules issued thereunder, to the extent they are not
inconsistent with the guidelines prescribed by RBI;

e. On the basis of the written representations received from the directors as on March 31, 2025, and
taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025
from being appointed as a director in terms of Section 164 (2) of the Act;

f. With respect to the maintenance of accounts and other matters connected therewith, reference is
made to our remarks in paragraph 3(b) above on reporting under section 143(3) and paragraph 3(i)(vi)
below on reporting under Rule 11(g) of the rules;

g. With respect to the adequacy of the internal financial controls with reference to these financial
statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure
1" to this report;

h. In our opinion and to the best of our information and according to the explanations given to us, the
provisions of Section 197 of the Act are not applicable to the Bank by virtue of Section 35B(2A) of the
Banking Regulation Act, 1949. Accordingly, the reporting under Section 197(16) of the Act regarding
payment/ provision for managerial remuneration in accordance with the requisite approvals mandated
by the provisions of Section 197 read with Schedule V to the Act, is not applicable; and

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

i. The Bank has disclosed the impact of pending litigations on its financial position in its financial
statements- Refer Schedule 18.13 to the financial statements;

ii. The Bank did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Bank;

iv. a) The management has represented that, to the best of its knowledge and belief, other than
as disclosed in the note 18.22 (y) to the financial statements, 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 Bank 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 Bank ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the note 18.22 (y) to the financial statements, no funds have
been received by the Bank from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise,
that the Bank 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

c) Based on such audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to believe
that the representations under sub-clause (a) and (b) contain any material misstatement.

v. No dividend has been declared or paid during the year by the Bank.

vi. Based on our examination which included test checks, the Bank has used various accounting
software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has been operated throughout the year for all relevant transactions
recorded in the software except in respect of records in two accounting software where audit
trail feature was not enabled, as described in note 18.22 (u) to the financial statements. Further,
during the course of our audit we did not come across any instance of audit trail feature being
tampered with, in respect of accounting software where the audit trail has been enabled.
Additionally, the audit trail in respect of the year ended March 31, 2025 and March 31, 2024 has
been preserved by the Bank as per the statutory requirements for record retention to the extent
it was enabled and recorded in those respective years, as stated in note 18.22 (u) to the financial
statements.

For S.R. Batliboi & Associates LLP For Batliboi & Purohit

Chartered Accountants Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004 ICAI Firm Registration Number: 101048W

per Sarvesh Warty per Janak Mehta

Partner Partner

Membership Number: 121411 Membership Number: 116976

UDIN: 25121411BMOKPQ2501 UDIN: 25116976BMOKPB1125

Place of Signature: Bengaluru Place of Signature: Bengaluru

Date: April 29, 2025 Date: April 29, 2025

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Mar 31, 2024

Jana Small Finance Bank Limited

Report on the Audit of the Financial Statements

Opinion

1. We have audited the accompanying financial statements of Jana Small Finance Bank Limited (the “Bank”) which comprise the Balance Sheet as at March 31, 2024, the statement of Profit and Loss Account, the statement of Cash Flows for the year then ended, and notes to the Financial Statements including a summary of significant accounting policies and other explanatory information (“the Financial Statements”).

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 (“the Act”) and the circulars and guidelines issued by Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with accounting principles generally accepted in India, including the accounting standards specified under Section 133 of the Act read with Companies (Accounting Standards) Rules, 2021, as applicable to banks, of the state of affairs of the Bank as at March 31, 2024, and its profit and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor''s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Bank 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements of the current year. 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.

Identification and Provisioning of Non-performing Advances (NPA):
Total NPA as at March 31, 2024: '' 494.33 Crores Provision for NPA as at March 31, 2024: '' 364.31 Crores (Refer Schedule 18.7(a))
Key Audit Matter	How our audit addressed the key audit matter
The Bank is required to comply with the Master Circular dated April 01, 2023 issued by the Reserve Bank of India (“RBI”) on “Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances” (the “IRAC norms”) and amendments thereto, which prescribe the guidelines for identification and classification of Non-performing Advances and the minimum provision required for such assets.	• Tested the design and operating effectiveness of key controls (including application controls) over approval, recording, monitoring, and recovery of loans, monitoring overdue/stressed accounts, identification of NPA, provision for NPA, and valuation of security including collateral. Testing of Application controls includes testing of automated controls, reports and system reconciliations.
The Bank is also required to apply its judgement to determine the identification and provision required against NPAs by applying quantitative as well as qualitative factors. The risk of identification of NPAs is affected by factors like stress and liquidity concerns in certain sectors.	• Evaluated the governance process and tested controls over calculations of provision on nonperforming advances, basis of provisioning in accordance with the Board approved policy. • Selected the borrowers based on quantitative and qualitative risk factors for their assessment

The provision against advances is based on criteria such as past due status, out of order status etc. The provision in respect of such NPAs are made based on ageing and classification of NPAs, recovery estimates, value of security, nature of loan products and other qualitative factors and is subject to minimum provisioning levels prescribed by the RBI and approved policy of the bank in this regard. In addition to this, for restructured accounts, provision is made for erosion/ diminution in fair value of restructured loans, in accordance with the RBI guidelines. Further, NPA classification is made borrower wise whereby if one facility of the borrower becomes NPA then all facilities of such a borrower will be treated as NPA. We have identified ''Identification of NPA and Provisioning on Advances'' as a key audit matter in view of the significant level of estimation involved, as well as the stringent compliances laid down by the RBI in this regard.	of appropriate classification as NPA including computation of overdue ageing to assess its correct classification and provision amount as per the IRACP norms and Bank policy. Performed other substantive procedures including but not limited to the following: ? Selected sample of performing loans and assessed them independently as to whether these should be classified as NPA; ? For sample selected, examined the security valuation, financial statements and other qualitative information of the borrowers; ? Considered the accounts reported by the Bank and other Banks as Special Mention Accounts (“SMA”) in RBI''s Central Repository of Information on Large Credits (CRILC) to identify stress; ? Performed inquiries with the credit and risk departments to ascertain if there were indicators of stress or an occurrence of an event of default in a particular loan account or any product category which needs to be considered as NPA; ? Assessed the appropriateness of asset classification and adequacy of related provisioning by performing procedures such as computation of overdue ageing, assessment of borrower level, NPA identification and verification of applicable provision rates as per IRACP norms and Bank''s Policy on test check basis; and ? Assessed the adequacy of disclosures against the relevant accounting standards and RBI requirements relating to NPAs.
Information Technology ("IT") Systems and Controls impacting Financial Reporting
Key Audit Matter	How our audit addressed the key audit matter
The Bank has a complex IT architecture to support its day-to-day business operations. High volume of transactions are processed and recorded on single or multiple applications. The reliability and security of IT systems plays a key role in the business operations of the Bank. Since large volume of transactions are processed daily, the IT controls are required to ensure that applications process data as expected and that changes are made in an appropriate manner. Appropriate IT general controls and application controls are required to ensure that such IT systems are able to process the data, as required, completely, accurately and consistently for reliable financial reporting. We have identified ''IT systems and controls'' (“inscope” IT systems) as key audit matter because of the	Our procedures with respect to this matter included the following: In assessing the controls over the IT systems of the Bank, we involved our technology specialists to obtain an understanding of the IT environment, IT infrastructure and IT systems. We evaluated and tested relevant IT general controls over the “inscope” IT systems and IT dependencies identified as relevant for our audit of the financial statements and financial reporting process of the Bank. On such “in-scope” IT systems, we have tested key IT general controls with respect to the following domains: • Program change management, which includes that program changes are moved to the production environment as per defined procedures and relevant segregation of environment is ensured.

high-level automation, significant number of systems being used by the management and the complexity of the IT architecture and its impact on the financial reporting system.	• User access management, which includes user access provisioning, de-provisioning, access review, password management, sensitive access rights and segregation of duties to ensure that privilege access to applications, operating systems and databases in the production environment were granted only to authorized personnel.
	• Program development, which includes controls over IT application development or implementation and related infrastructure, which are relied upon for financial reporting.
	• IT operations, which includes job scheduling, monitoring and backup and recovery.
	We also evaluated the design and tested the operating effectiveness of relevant key IT dependencies within the key business process, which included testing automated controls, automated calculations/ accounting procedures, interfaces, segregation of duties and system generated reports, as applicable.
	We communicated with those charged with governance and management and tested a combination of compensating controls or remediated controls and/or performed alternative audit procedures, where necessary.

Other Information

5. The Bank''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the Financial Statements and our auditor''s report thereon. the Annual Report is expected to be made available to us after the date of this auditor''s report.

Our opinion on the Financial Statements does not cover the other information and we will 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 in the audit, or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements:

6. The Bank''s Board of Directors are responsible for the matters stated in Section 134(5) of the Act, with respect to the preparation and presentation of these Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act read with the Companies (Accounting Standards) Rules, 2021, and the provisions of Section 29 of the Banking Regulations Act, 1949 and circulars, guidelines and directions issued by the Reserve Bank of India (“RBI”) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank 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.

7. In preparing the Financial Statements, the Board of Directors are responsible for assessing the Bank''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 and Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Bank''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements

8. 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 auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a 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.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of 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.

• Obtain an understanding of internal control 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 Bank has internal financial controls with reference to the Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management of the Bank.

• 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 Bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

• 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.

10. 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.

11. 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.

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

Report on other legal and regulatory requirements

13. In our opinion, the Balance Sheet and the Statement of Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 and Section 133 of the Act.

14. As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:

(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory;

(b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank;

(c) During the course of our audit, we have visited 20 branches to examine the books of account and other records maintained at the branch and performed other relevant audit procedures. Since the key operations of the Bank are automated with the key applications integrated to the core banking system, the audit is carried out centrally at the Bank''s Head Office located in Bengaluru, as all the necessary records and data required for the purposes of our audit are available there.

15. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books, except for the matters stated in paragraph 15(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended) (“the Rules”);

(c) The Balance Sheet, the Statement of Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the aforesaid Financial Statements comply with the Accounting Standards specified under Section 133 of the Act read with Companies (Accounting Standards) Rules 2021, to the extent they are not inconsistent with the guidelines prescribed by RBI;

(e) On the basis of the written representations received from the directors as on March 31, 2024, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164(2) of the Act;

(f) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our remarks in paragraph 15(b) above on reporting under Section 143(3)(b) and paragraph 15(h)(vi) below on reporting under Rule 11(g) of the Rules;

(g) With respect to the adequacy of the internal financial controls with reference to Financial Statements of the Bank and the operating effectiveness of such controls, refer to our separate report in “Annexure A”; and

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

i. The Bank has disclosed the impact of pending litigations on its financial position in its Financial Statements - Refer Schedule 18.13 to the Financial Statements;

ii. The Bank did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Bank;

iv. (a) The management has represented that, to the best of its knowledge and belief, other than as

disclosed in the 18.22(aa) 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 Bank 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 Bank (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the 18.22(aa), no funds have been received by the Bank from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Bank 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

(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) contain any material misstatement.

v. The Bank has not declared any dividend during the year; and

vi. Based on our examination, which included test checks, the Bank has used various accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility, which have operated throughout the year for all relevant transactions recorded in the software, except that the audit trail feature was not enabled throughout the year for masters in one accounting software and for databases (also, refer Schedule 18.22 (u) to the financial statements of the Bank). Based on our procedures performed, we did not notice any instance of the audit trail feature being tampered with. In respect of the aforesaid masters and databases, in the absence of audit trail for the said period, the question of our commenting on whether the audit trail was tampered with, does not arise.

16. In our opinion and to the best of our information and according to the explanations given to us, the provisions of Section 197 of the Act are not applicable to the Bank by virtue of Section 35B(2A) of the Banking Regulation Act, 1949. Accordingly, the reporting under Section 197(16) of the Act regarding payment/ provision for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act, is not applicable.

For Brahmayya & Co., For M M Nissim & Co LLP

Chartered Accountants Chartered Accountants

(Firm Registration No. 000515S) (Firm Registration No. 107122W/ W100672)

G. Srinivas Navin Kumar Jain

Partner Partner

Membership No. 086761 Membership No. 090847

UDIN: 24086761BKCIZE3466 UDIN: 24090847BKFEGY7024

Place: Bengaluru Place: Bengaluru

Date: April 29, 2024 Date: April 29, 2024