We have audited the accompanying Standalone Financial Statements of Housing and Urban Development Corporation
Limited (“the Company”), which comprise the Balance Sheet as at 31^st March, 2025, the Statement of Profit and Loss
(including other Comprehensive Income), the statement of changes in equity and the Statement of Cash Flow for the
year then ended, and Notes to the Standalone financial statements including a summary of Material Accounting Policies
and other explanatory information (hereinafter referred to as “the Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required
and give a 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^st March, 2025, its profit (including
other comprehensive income), changes in equity and its cash flows for the year ended on that date.

2. Basis for Opinion:

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs)
specified under Section 143(10) of the Companies Act, 2013.

Our responsibilities under those Standards are further described in the 'Auditor's Responsibilities for the Audit of the
Standalone Financial Statements' section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements
that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013
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 on the standalone financial statements.

3. Emphasis of Matter:

We draw attention to the following matter in the Para 3 of Note 41 to the Standalone financial statements:

1. The company has recognized interest income on “No lien AGP Account” amounting to Rs. 29.46 Crore for the year
ended 31^st March 2025 [Rs. 29.01 Crores for the previous year ended 31^st March, 2024].

2. The balance outstanding at the end of the year is Rs. 626.52 Crore (debit) (Rs. 592.65 Crore (debit) in the previous
year ended 31^st March 2024) in “No lien AGP Account”. The company is in discussion with MoHUA for recover/
reimbursement of outstanding amount (including interest) as well as booking of expenses.

3. The Company has not complied with the provisions of regulation 17(1)(b) of SEBI (LODR) Regulations, 2015,
regarding the requirement of the requisite number of Independent Directors for the period July 1, 2019 to Dec 31,2022
and April 1, 2023 to March 31, 2025.

4. Our opinion is not modified in respect of these matters.

4. Key Audit Matters:

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the Standalone Financial Statements of the current year. These matters were addressed in the context of our audit
of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be the key audit matters to be
communicated in our reports:

5. INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S REPORT
THEREON:

The Company's Board of Directors are responsible for the other information. The other information comprises the
Directors' report, Corporate Governance report, Business responsibility report and Management Discussion and
Analysis etc. included in the Company's Annual Report, but does not include the standalone financial statements and
our auditor's report thereon. The Annual report for the year ending 31^st March 2025 is expected to be made available to
us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.

When we read the other information, 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 actions, if required.

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

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
(“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance including other Comprehensive income, Changes in Equity, and Cash flows of
the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting
Standards (Ind ASs) specified under Section 133 of the Act.

This responsibility also includes,

a. 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;

b. selection and application of appropriate accounting policies;

c. making judgments and estimates that are reasonable and prudent and

d. design, implementation and maintenance of adequate internal financial controls, that were operating effectively,

for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the standalone financial statements that give a true and fair view and are free from material misstatement, whether due
to fraud or error.

In preparing the Standalone Financial Statements, the Board of Directors 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 Board of Directors either intend to liquidate the company or to cease operations, or
has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

7. Auditor's Responsibilities for the Audit of the Standalone Financial Statements:

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an 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 Standalone 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 Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of Internal control.

• 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 Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has adequate internal financial controls with reference to
Standalone 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 Company'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 Standalone
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause
the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

Materiality is the magnitude of misstatement in the Standalone 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 misstatements 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 Standalone Financial Statements of the current period 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.

8. Report on Other Legal and Regulatory Requirements:

A. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”) issued by the Central Government
of India in terms of Sub section (11) of Section 143 of the Act, we give in the Annexure- “A”, a statement on the
matters specified in Paragraph 3 and 4 of the said Order, to the extent applicable.

B. The Comptroller and Auditor General of India has issued the directions indicating the areas to be examined in term
of sub-section 5 of Section 143 of the Act, the compliance of which is set out in Annexure- “B”.

C. 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 accounts 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], Statement
of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the
books of account;

d) In our opinion, the aforesaid Standalone 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) The provisions of section 164(2) of the Companies Act, 2013 in respect of disqualifications of directors are
not applicable to the Company being Government Company in terms of notification no. G.S.R. 463(E) dated
5^th June 2015 issued by the Ministry of Corporate affairs;

f) With respect of the adequacy of the Internal Financial Controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate report in Annexure- “C”;

g) As per notification number G.S.R 463(E) dated June 5, 2015 issued by Ministry of Corporate Affairs, Section
197 of the Act regarding remuneration to Director is not applicable to the Company, since it is a Government
Company 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 Company has disclosed the impact of pending litigations on financial position on its Standalone financial
statements; (Refer Para 2(a) of Note no. 41 to standalone financial statements)

ii. The Company has made due provision as required under the applicable law or Indian Accounting Standards,
for material foreseeable losses, if any, on long term contracts including derivatives contracts; (Refer Note
no. 38 to standalone financial statements)

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company; (Refer Para 17 of Note no. 41 to standalone financial statements)

iv.

(a) The management has represented that, to the best of its knowledge and belief (Refer Para 39 of Note
no. 41 to standalone financial statements) no funds (which are material either individually or in the
aggregate) have been advanced or loaned invested (either from borrowed funds or securities premium
or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign
entities (the 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 (the Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf the Ultimate Beneficiaries;

(b) The management has represented that, to the best of its knowledge and belief, (Refer Para 39 of
Note no. 41 to standalone financial statements) no funds (which are material either individually or
in the aggregate) have been received by the Company from any persons or entities, including foreign
entities (the 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

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

v. As stated in Para 29 of Note no. 41 to the Standalone Financial Statements:

• The final dividend proposed for the previous year, declared and paid by the company during the year is
in compliance with section 123 of the companies Act,2013, as applicable;

• The interim dividend declared and paid by the company during the year and until the date of this report
is in compliance with section 123 of the companies Act, 2013 and

• The Board of director of the company have proposed final dividend for the year which is subject to the
approval of the member at the ensuing Annual General Meeting. The amount of the dividend proposed
is in accordance with section 123 of the companies Act, 2013, as applicable.

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with respect to using accounting software
for maintaining its books of account which has certain features e.g. edit log etc. as enumerated in
aforesaid proviso is applicable to the Company with effect from April 1, 2023.

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 audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the company as per the statutory requirements for record
retention.

9. NHB/RBI Directions:

The Company is complying with National Housing Bank's (NHB)/Reserve Bank of India's (RBI) credit concentration
norms in respect of loans to private sector agencies. However, in case of loans to State Governments/State Government
Agencies/Central Government Agencies, the said norms have been relaxed by the NHB/RBI vide its circular number
DOR.CRE.70/21.01.003/2023-24 dated January 15, 2024 (Refer Para no.19 of Note No.41).

In reference to the above, all exposures except, exposures which are secured by Central Government/State Governments
guarantees and direct borrowings by the government have been considered for computing the exposure for purposes
of credit concentration norms.

For S A R C & Associates,
Chartered Accountants
FRN - 006085N

Sd/-

(Kamal Aggarwal)

Place: New Delhi Partner

Date: 25^th June, 2025 M. No. 090129

UDIN No. 25090129BMJMFU9247