We have audited the accompanying financial statements
of CAPITAL SMALL FINANCE BANK LIMITED ("the Bank"),
which comprise the Balance Sheet as at 31^st March, 2025,
the Profit and Loss Account, 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 (together referred to as
"financial statements").

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 and the Companies Act,
2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Accounting Standards
prescribed under section 133 of the Act ("Accounting
Standards") as applicable to Bank, the relevant circulars,
guidelines and directions issued by the Reserve Bank
of India ("RBI") from time to time and other accounting
principles generally accepted in India, of the state of affairs
of the Bank as at 31^st March, 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") specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditor's
Responsibility 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 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 audit opinion on the
financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
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 to be communicated in our report.

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

The Bank's Board of Directors are responsible for the
other information. The other information comprises the
information in the Annual Report but does not include
the financial statements and our auditors report thereon
and the Basel II Disclosures under New Capital Adequacy
Framework (Basel II Disclosures).

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 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, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.

RESPONSIBILITIES OF THE MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE 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 provisions of Section 29 of the Banking Regulation Act,
1949, Accounting Standards specified under section 133 of
the Act and other accounting principles generally accepted
in India and the circulars, guidelines and the directions
issued by the Reserve Bank of India, from time to time.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding 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 statement 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 the Board of Directors either intends to
liquidate the Bank or to cease operations or has no realistic
alternative but to do so.

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

AUDITOR'S RESPONSIBILITY 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 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 an
adequate internal financial controls system 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.

Materiality is the magnitude of misstatement in the
financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements
may be influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatement in the
financial statements.

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 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

1) The Balance sheet and the 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 and the relevant rules issued
thereunder.

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.

c. Since the key operations of the Bank are
automated with the key applications integrated
to the core banking system, it does not require
its branches to submit any financial returns.
Accordingly, the audit is carried out centrally as all
the necessary records and data required for the
purposes of our audit are available therein. We
have visited 25 branches to examine the records
maintained at the 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 and have found them to be
satisfactory.

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

(c) 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 accounting policies
prescribed by the RBI;

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

(e) 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". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Bank's internal
financial controls with reference to financial
statements, and;

(f) 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
12 and Note No. 32 of the Schedule 18 to the
financial statements.

ii. The Bank did not have any long-term
contracts including derivative contracts as
at the year-end for which there were material
foreseeable losses.

iii. There has been no delay in transferring
amounts, required to be transferred, to the

declared for the previous year is in
accordance with Section 123 of the
Companies Act 2013 to the extent it
applies to payment of dividend.

As stated in note 1.1.5 of Schedule 18
to the financial statements, the board
of Directors of the bank have proposed
final dividend for the year which is
subject to the approval of the members
at the ensuing annual general meeting.
The dividend proposed is in accordance
with section 123 of the Act.

vi. Based on our examination, which included
test checks, the Bank has used accounting
software systems for maintaining its books
of account for the financial year ended
31^st March 2025, which have 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 systems. Further, during the
course of our audit we did not come across
any instance of the audit trail feature being
tampered with and the audit trail has been
preserved by the Bank as per the statutory
requirements for record retention.

4) With respect to the other matters to be included in the
Auditor's 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 entity being a
banking company, section 197 of the Act related to the
managerial remuneration is not applicable by virtue of
Section 35B(2A) of the Banking Regulation Act, 1949.

FOR SCV & CO. LLP

Chartered Accountants
Firm Registration No. 000235N/N500089

SUNNY SINGH

Partner

Membership No. 516834
ICAI UDIN: 25516834BMMNCP9443

Place: Noida

Date: 29^th April 2025