Your Board of Directors' ("the Board") are pleased to present this 39^th Annual Report on the performance of your Company
(the "Company") along with the Audited Financial Statements for the Financial Year ended on March 31,2026 ("FY26").

1.    COMPANY OVERVIEW:

Can Fin Homes Limited, a Housing Finance Company promoted by Canara Bank, was incorporated in 1987, the International
Year of Shelter for the Homeless. The Company was incorporated under the Companies Act, 1956. Your Company is a first
housing finance Company floated by any Nationalised Bank in the Country. The objective of setting up the Company is to
promote home ownership & to increase the housing stock in the country. With a strong presence in emerging urban and
semi-urban markets, your Company is committed to expanding access to formal housing credit, particularly for low and
middle-income families and underserved customer segments.

Your Company is registered with the National Housing Bank ("NHB") / Reserve Bank of India ("RBI") as a deposit-taking
Housing Finance Company and with Insurance Regulatory and Development Authority of India ("IRDAI") as a Corporate
Agent (Composite). The equity shares of the Company are listed on the BSE Limited ("BSE") and the National Stock
Exchange of India Limited ("NSE").

2.    FINANCIAL RESULTS:

Your Company's financial performance during the year reflects sustainable, consistent, and quality growth. The key
highlights of the Audited Financial Statements of your Company for the Financial Year ended on March 31,2026 ("FY26"),
along with a comparison with the previous financial year ended on March 31,2025 ("FY25") are summarized below:

Note: (i) Figures for the Previous Year have been rearranged / regrouped wherever necessary while preparing
the statements as per IND-AS requirements.

(ii) The interim dividend of '7.00 per equity share of face value of '2/- each paid by the Company during
December 2025 has been accounted.

(iii)    The proposed dividend of '8.00 per equity share has not been recognized as a liability in the annual
accounts as at 31^st March 2026 (in compliance with IND AS 10 events occurring after the Balance sheet
date). The same will be considered as a liability upon approval by the shareholders at the 39^th Annual
General Meeting (AGM).

3. SHAREHOLDERS' WEALTH:

* During the FY 2025-26, your Company has paid an Interim dividend of '7/- per share (350%), for equity share of face value of '2/- each and has proposed
final dividend of '8/- per equity share of face value of '2/- per equity share (400%) subject to the approval of shareholders at the ensuing 39^th AGM. The total
dividend (interim and final) paid/recommended for the year amounts to '15/- per equity share (750%) for the shareholders.

4. BUSINESS PERFORMANCE HIGHLIGHTS:

The business performance highlights of the Company

for FY 2025-26 are provided below:

a)    Sanctions: The Company has sanctioned '11,148
Crore in FY 2025-26 as compared to '9,294 Crore
during the previous year. Since inception, the
cumulative loan sanctions by your Company
stood at '96,030 Crore at the end of FY 2025¬
26. Average ticket size of incremental housing
loans and non-housing loans were '27 Lakh and
'14 Lakh, respectively.

b)    Disbursements: The disbursements made
during the year amounted to '10,531 Crore as
compared to '8,568 Crore during the previous
FY 2024-25. The cumulative loan disbursements
from inception to the end of the FY 2025-26 were
'88,082 Crore.

c)    Loans outstanding (Loan Book): The total loan
book as at March 31, 2026, was '42,209 Crore, as
compared to '38,217 Crore during the previous
year recording a growth of around 10% over last
year. At a portfolio level, housing loans constitute
68.53% and non-housing loans comprised 31.47%.

d)    Non-Performing Asset (NPA): The Gross NPA
of the Company as at March 31, 2026, was
'357 Crore as compared to '333 Crore during the
previous year. The net NPA as at March 31, 2026,

was '156 Crore as compared to '174 Crore during
the previous year. The gross NPA percentage as at
March 31, 2026, stood at 0.85% as compared to

0.87% as at March 31,2025. Similarly, the Net NPA
percentage as at March 31, 2026, stood at 0.37%
as compared to 0.46% as at March 31,2025.

e)    Profits: Your Directors are pleased to inform
that during the year under review, the Company
recorded an Operating Profit of '1,343.18 Crore
(previous year '1,153.25 Crore), Profit Before Tax
(PBT) of '1,303.56 Crore (previous year '1,077.48
Crore) and Profit After Tax (PAT) of '1,085.75 Crore
(previous year '857.17 Crore) which is the highest
profit ever recorded since inception. During
the year, the Company reversed the provision
on standard assets amounting to '2.43 Crore.
The provision for standard assets was made of
'56.23 Crore (including management overlay
amounting to '25 Crore) during the previous year.
During the year, the provision was made for non¬
performing assets amounting to '42.05 Crore
(previous year '19.54 Crore). Provisions for Tax
Expenses (including Deferred Tax) amounting to
'217.81 Crore (previous year '220.30 Crore) were
made.

f)    Reserves: Pursuant to Section 29C of the National
Housing Bank Act, 1987, the Company is required
to transfer at least 20% of its net profit every year to

the statutory reserve fund before any dividend is
declared. During the financial year under review,
your Company transferred '260 Crores out of the
previous year's profits available for appropriation
to the Statutory Reserve Fund (being the Special
Reserve).

5. DIVIDEND:

Your Company has a consistent track record of
dividend payments. While recommending the dividend,
the Directors have considered applicable NHB and RBI
guidelines, provisions under the Companies Act, 2013,
Dividend Distribution Policy, long-term growth plans of
the Company, minimum capital requirements and net
NPA ratio, etc.

Your Directors, after giving due consideration to
Capital Adequacy requirements, deferred tax liability,
its impact on financial markets, the resultant impact
on the Company and the Dividend Distribution
Policy, have recommended a final dividend of '8/-
per equity share of face of value of '2/- per share
(400%), for the financial year ended March 31, 2026,
subject to the approval of the Shareholders at the
ensuing 39^th AGM of the Company. The Board of
Directors at their meeting held on December 15,
2025, had declared and paid an Interim dividend of
'7/- per share (350%), for equity share of face value of
'2/- each. The total amount of dividend (Interim and
Final) recommended for payment/paid for the year
under review is '15/- per equity share amounting to
'199.73 Crore.

As per Section 393 of Income Tax Act, 2025, the
Company is required to deduct Tax at Source (TDS)
@ 10% on dividend payment for resident shareholders
(20% in case PAN is not available or having inoperative
PAN). However, in the case of resident Individual
shareholders, if the aggregate dividend amount paid
during the year does not exceed '10,000/- no TDS
will be required. Further, no TDS shall be deducted
for dividend payment to any Insurance Company and
Mutual Funds specified in Schedule VII of Income Tax
Act, 2025.

Moreover, as per Section 393 read with 207 of the
Income Tax Act, 2025, TDS is required to be deducted
@ 20% plus applicable surcharge and cess on payment
of Dividend to Non-Residents.

In accordance with Regulation 43A of the Securities
and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015

(the "SEBI Listing Regulations"), your Company has
formulated and adopted a Dividend Distribution
Policy and is available on the website of the Company
athttps://www.canfinhomes.com/Policies and Codes.
The declaration of dividend is undertaken in compliance
with the applicable provisions of the Reserve Bank of India
(Housing Finance Companies) Directions, 2025 and the
Reserve Bank of India (Non-Banking Financial Companies
- Prudential Norms on Declaration of Dividends)
Directions, 2025, as amended from time to time.

6.    INFORMATION ON THE STATE OF AFFAIRS
OF THE COMPANY:

The information on the affairs of the Company has
been given as part of the Management Discussion and
Analysis section of the Report.

7.    CAPITAL ADEQUACY:

As per the Reserve Bank of India (Non-Banking Financial
Companies - Prudential Norms on Capital Adequacy)
Directions, 2025, your Company is required to maintain
a minimum Capital to Risk-Weighted Assets Ratio
(CRAR) of 15% of its aggregate risk-weighted assets.
Further, Tier II capital shall not, at any point in time,
exceed 100% of Tier I capital. In compliance with the
requirements, as at March 31, 2026, your Company's
CRAR stood at 23.15% (previous year 25.08%).

Your Company continues to maintain capital adequacy
well above the regulatory minimum, reflecting its
strong capital position and financial stability.

8.    DEPRECIATION:

Depreciation was calculated on the written down value
method based on useful life, in the manner prescribed
in Schedule II of the Companies Act, 2013.

9.    DEFERRED TAX ASSET (DTA):

During the year, deferred tax asset (net) of '54.25
Crore (previous year '3.36 Crore) was considered
in the Statement of Profit & Loss, on account of
various components of assets and liabilities. The DTA
outstanding as at March 31, 2026, was '123.52 Crore
(previous year '69.35 Crore).

10.    EXPANSION OF BRANCH NETWORK:

The expansion of the branch network is a key strategic
initiative aimed at strengthening the organization's
market presence, improving customer accessibility,
and supporting long-term business growth. A well-
planned expansion will enable the organization to tap

?    General Ledger is implemented in the
new system during Q2 FY 26 which
helps automated transaction posting,
reconciliation, and report generation.

?    CBS implementation Document Management
System (DMS) was implemented during Q3
FY 26 to organize the documentation digitally
and maintain central repository.

?    Aadhaar Data Vault was implemented during
Q3 of FY 2025-26 which enables secure
storage of Aadhaar numbers and ensures
security, privacy and regulatory compliance.

?    Cloud landing zone setup has been completed
in order to manage the Applications,
Databases, integrations, secure access,
networking controls and security solutions.

?    Software Defined Wide Area Network
(SDWAN) setup has been implemented
across all Branch offices for secure network
& centralized management.

?    New E-mail solution has been implemented
across the organisation in order to have
secure and reliable communication.

?    Centralised Desktop Management Solution
has been implementation for central
management, effective patch & software
deployments.

?    Security Operations Centre, Endpoint DLP,
Identity and Access management, Database
activity monitoring, Brand monitoring etc.,
have been rolled out. These implementations
help improve the security posture of the
company.

?    As part of operations & support solution of
CBS project Network Operations Centre,
IT Service Management tools have been
configured, and access is given to all
employees. This will help enhance the
operational activities of the system.

?    Implementation of deposits module named
KIA was done in FY 2026 and LOS & LMS
modules are in progress and currently are in
testing phase.

^ To improve operational efficiency, your Company
has implemented Central Know Your Customer
(CKYC) software, Perfios and web-based
Application software for Inspection & Audit. The
website of your Company is interactive and user
friendly. Further, your Company website has
got revamped with more Business-driven
capabilities. Introduction of AI-powered
chatbot to provide query-specific response to
existing customers, public, potential customers,
shareholders and DSAs.

^ Your Company has implemented Chatbot to
enable customer to avail the various services
offered. Further, for broader outreach your
Company has implemented Chatbot in vernacular
languages like Tamil, Kannada, Telugu, Marathi
and Gujarati apart from Hindi and English.

^ Your Company has digital meetings platform for
Board and various Committee meetings which
are paperless, secure, efficient and cost-effective.
Further, the Company also has a platform for
maintaining Structured Digital Database (SDD)
for recording movement of Unpublished Price
Sensitive Information (UPSI). Your Company has
implemented reconciliation tools. On collection
side, it has integrated with Bharat Bill Payment
System and implemented online vendor payments
with Zaggle solution.

^ Your Company is utilizing the Video Conferencing
facility for Board and Committee meetings, review
meetings with branches, clusters and interviews
for recruitments, etc.

^ Thrust on cyber security has been given and
security awareness is spread amongst employees
regularly. Information on do's and don'ts to
safeguard the information assets of the Company
is being communicated to the employees
regularly. Customers have been updated with
security awareness content through SMS and
Website posters.

^ Your Company is focusing on AI driven capabilities
wherever possible in order to enhance operational
efficiency and customer experience.

^ Your Company has implemented Anti-Money
Laundering screening tool to identify and mitigate
the risk of financial crimes.

^ Your Company has onboarded consultant for
Assessment & Implementation of Digital Personal
Data Protection Act rules.

12. CUSTOMER-CENTRIC INITIATIVES:

Your Company is committed to a "Customer-First"
philosophy, built on the pillars of transparency,
accessibility, and digital innovation. Our recent initiatives
are designed to simplify the housing finance journey and
provide unparalleled support to our customers.

1.    Visual Guidance & Information Empowerment

To ensure our customers make well-informed
financial decisions, we have transformed our
branches into comprehensive information hubs:

•    Educational Collateral: Availability of leaflets
in all the branches that serve as accessible
guides, clearly outlining essential product
features.

•    On-Site Visibility: The placement of standees,
posters, and danglers guarantees that
essential product information and updates
are prominently displayed for all visitors.

2.    Digital Transformation & AI-Assisted Support

The Company has strengthened its digital channels,
including websites and mobile/web-based
applications, enabling customers to access
services, submit requests, track transactions,
and obtain information anytime and anywhere.
These platforms are designed with a user-friendly
interface to ensure ease of navigation and faster
turnaround time.

•    AI-Powered Virtual Assistant:    Introduction

of Vani, an AI digital assistant available 24/7 on
our website. Vani streamlines the customer
experience by providing instant information
on our product suite, eligibility checks,
immediate downloads of IT certificates, and
more.

•    Enhanced Connectivity via    WhatsApp:

Integration of WhatsApp for automated alerts
regarding EMI schedules, account status
updates, NACH/ECS status, delinquency
warnings, to communicate new offerings, etc.

•    Social Media Engagement: Fortified our
social media presence to provide timely
updates and offer an additional, responsive
channel for addressing customer queries. Few
key initiatives include:

^ Rent Free Revolution    Campaign:

High-impact drive to enhance brand
awareness.

^ Introduction of Paarth: Official mascot
to build a relatable identity.

^ Myth vs. Reality Series: Educational
content debunking common industry
misconceptions.

^ Customer Meets: Interactive sessions
for engagement and query resolution.

3.    Transparency & Inclusive Communication

•    Multilingual Accessibility: In line with
RBI Master Directions, your Company has
incorporated Fair Practice Code (FPC) and
Most Important Terms and Conditions (MITC)
in English and other four popular Indian
vernacular languages which are available on
the Company website, ensuring clarity for our
diverse customer base.

•    Feedback Ecosystem: Installation of QR code¬
based feed back board s across all branches
which allows customers to instantly rate their
experience regarding post-disbursal services,
prepayments, and grievance redressal,
fostering a culture of accountability.

4.    Community Engagement & Financial Inclusion

•    PMAY-U 2.0 (Pradhan Mantri Awas Yojana -
Urban 2.0) "Lantern Nights”: To advance the
Government of India's flagship initiative, your
Company hosted "Lantern Nights" - extended-
hour sessions designed to guide families
through the PMAY-U 2.0 Interest Subsidy
Scheme with hands-on portal assistance long
after our usual working hours.

•    Can Fin Homes Connect: Conducting
structured engagement sessions at regular
intervals to align our housing and non-housing
loan portfolios with the specific financial
needs of our customers and incorporate their
feedback to refine our offerings.

5.    Operational Excellence & Support

•    Seamless Disbursement:    Leveraging

cutting-edge technology, and a frictionless
disbursement process across our nationwide
network.

•    Dedicated Support Channels: Maintaining
a robust grievance redressal framework
through our dedicated customer care
desk (customercare@canfinhomes.com),
toll-free helpline (1800-203-4488), and
specialized grievance redressal e-mail support
(grievance.redressal@canfinhomes.com).

• Online Financial Tools: Empowering our
customers with a suite of online tools, which
includes EMI and Deposit calculators, to
facilitate transparent and informed financial
planning.

13. FINANCIAL RESOURCES:

a)    Refinance from National Housing Bank (NHB):

During the year under review, your Company has
received a fresh sanction amounting to '1500
Crore from NHB, under the refinance scheme.
The sanctioned amount was fully drawn under the
Affordable Housing Finance and Regular Refinance
Schemes.

b)    Borrowings from Bank:

During the year, borrowings were diversified
through a combination of short-term and long-term
loans considering the asset liability management
position and minimizing the overall cost of funds.
To diversify risks within banks, the Company had
exposure from Private and Public Sector Banks.
The aggregate bank borrowings (term loans plus
overdraft) as at the end of the financial year stood
at '24,342.11 Crores. The overall borrowings are
within regulatory ceiling of 12 times the Net Owned
Funds.

The overall cost of borrowing from banks was
7.20% p.a. as at March 31, 2026. During the year,
the long-term 'rating' of the Company for Long
Term Loans was [ICRA] AAA (Stable) reaffirmed by
ICRA Limited and CARE AAA' (Stable) reaffirmed by
CARE Limited, signifying highest degree of safety
regarding timely servicing of financial obligations.

c)    Debentures:

(i) Secured Non-Convertible Debentures (NCD):

Your Company raised NCDs amounting to
'980 Crores (previous year '3,450 Crores in
multiple) in one tranche during the financial
year. The debentures were secured by way
of floating charge on the assets i.e., loan
receivables specifically earmarked for the
purpose, in favour of the Debenture Trustees.
The investors of the NCDs are majorly
insurance companies, Public Sector Banks,
corporates, PF trusts, mutual funds and other
investors of repute, indicating their safety
perception of your Company's fundamentals
and prospects. The tenure of the outstanding

NCDs ranges from 36 months to 60 months.
The interest on these debentures was serviced
regularly during the year under review.
The outstanding borrowings by way of
secured NCDs as at March 31, 2026, was
'6,365 Crores (previous year '8,046 Crores).
The average cost of NCDs was 8.01% p.a. The
NCDs issued during the year was rated, "[ICRA]
AAA (Stable)" by ICRA Limited, signifying
highest degree of safety regarding timely
servicing of financial obligations and very low
credit risk. These NCDs were listed on the
Wholesale Debt Market (WDM) segment of
the National Stock Exchange of India Limited.

(ii)    Unsecured Non-Convertible Debentures
(UNCD):

During the year under review, your Company
has not issued any Unsecured Non¬
Convertible Debentures, nor any Unsecured
Non-Convertible Debentures were lying with
the Company.

The Company is in compliance with the
provisions of the Reserve Bank of India
(Housing Finance Companies) Directions,
2025 [erstwhile Master Direction - Non¬
Banking Financial Company- Housing Finance
Company (Reserve Bank) Directions, 2021]
and has been regular in payment of principal
and/or interest on the NCDs. Details of
borrowings are provided in the notes to
accounts.

Your Company affirms that there has been
no deviation or variation in the utilization
of proceeds of NCDs from the objects
stated in the respective offer documents or
explanatory statement to the notice for the
general meeting, as applicable. During the
year under review, your Company had not
issued Equity Shares/ Debentures to public
for subscription.

(iii)    Details of Debenture Trustee:

During the year under review, your Company
has continued to engage with the existing
Debenture Trustee. The details are given
below:

SBICAP Trustee Company Limited

Mistry Bhavan, 4th Floor, 122,

Dinshaw Wachha Road,

Churchgate, Mumbai-400 020
Tel: 022-43025555, Fax: 022-43025500
E-mail: corporate@sbicaptrustee.com
Website: www.sbicaptrustee.com
CIN: U65991MH2005PLC158386

iv) Procedural Framework for Dealing with
Unclaimed Interest and Redemption Amounts:

The SEBI vide its circular SEBI/HO/DDHS/
DDHS-RAC-1 /P/CIR/2023/1 76    dated

November 08, 2023 ('the Circular'), has
prescribed the procedural framework
for dealing with unclaimed interest and
redemption amounts lying with entities having
listed non-convertible securities and manner
of claiming such amounts by investors.

The circular requires such companies to
formulate a policy specifying the process to
be followed by investors for claiming their
unclaimed amounts. Accordingly, a policy
titled 'Policy for claiming unclaimed amounts
with respect to "Non-Convertible Debentures
and manner of Claiming such amounts by
Investors" has been framed by the Company.
The Company Secretary has been designated
as the Nodal Officer for the purposes of this
circular. As on 31 March 2026, there is no
amount remaining unclaimed in respect of
non-convertible debentures.

d) Commercial Paper:

Your Company mobilizes funds through
Commercial Paper (CP) for leveraging cost
of borrowing to the extent of undrawn Bank
limits. The CP outstanding at the end of FY
2025-26 was '1,000 Crores (previous year
'2,600 Crores). The effective cost of funds
raised through CP during the year was 6.46%
p.a. The CP issued by your Company was rated
at the maximum [ICRA] A1 + by ICRA Ltd., and
CARE A1 + by CARE Limited. Instruments with
this rating are considered to have highest
degree of safety regarding timely payment of
financial obligations. The Company listed its
CPs on BSE Limited.

The Company affirms that there has been
no deviation or variation in the utilization
of proceeds of Commercial Papers, from
the objects stated in the respective offer
documents.

e) Deposits:

During the year, your Company accepted
new deposits amounting to '132.91 Crore as
compared to '87.55 Crore during the previous
year (outstanding live accounts only). The
outstanding balance of deposits (including
interest accrued, but not due) as at March
31, 2026, was '220.20 Crore (previous year
'193.52 Crore). The rate of interest on public
deposits ranged from 6.5% p.a. to 7.75% p.a.
while the overall cost (average) of deposits
was 7.79% p.a. as at March 31,2026.

As at March 31, 2026, a sum of '4.76 Crore
relating to 250 accounts of public deposits
('6.15 Crore as at March 31, 2025, relating
to 351 accounts) remained unclaimed/
overdue, of this amount, a sum of '0.48 Crore
relating to 16 accounts (previous year '1.66
Crore relating to 66 accounts as on April 30,
2025) were claimed and renewed / settled
up to April 30, 2026. The Depositors were
intimated regarding the maturity of deposits,
with a request to either renew or claim
their deposits. Where the deposit remains
unclaimed, reminder letters / SMS are sent to
depositors periodically and follow up action is
initiated through the concerned branch. Your
Company has not defaulted in repayment
of deposits or interest during the year.
The Company has complied with the
requirements under Chapter V of the
Companies Act, 2013 to the extent applicable.
During the year, the deposit schemes of your
Company have been rated 'ICRA AAA' Stable,
reaffirmed by ICRA Ltd., indicating 'highest
credit quality' and that the rated deposit
programme carried the lowest credit risk. Your
Company, being a Housing Finance Company,
is registered with NHB and has complied with
the Directions / Guidelines issued by the NHB
and RBI with regard to deposit acceptance and
renewal. Your Company is exempted from the
applicability of the Companies (Acceptance of
Deposits) Rules 2014.

As per the regulatory requirement vide the
communication bearing reference, RBI/2023-
24/14DOR.SFG.REC.10/30.01.021/2023-24
dated April 11, 2023, the Company has
formulated the Green Deposits Policy.

f) Residential Mortgage-backed Securities:

During the year under review, there were no
securitized assets outstanding as at March
31,2026. Further, the Board of Directors at its
meeting held on April 24, 2025, approved the
proposal for raising funds through Residential
Mortgage - backed securities upto '300 Crores
in compliance with the RBI Master Direction
dated 24.09.2021 and 05.12.2022.

14. REGULATORY COMPLIANCES:

^ Compliance with Regards to Directions/
Guidelines of Reserve Bank of India (RBI) /
National Housing Bank (NHB) and other Statutes:

Regulatory guidelines for housing finance in India
are largely driven by the RBI and NHB, focusing on
strengthening prudential norms, enhancing customer
protection, and supporting affordable housing.

In November 2025, a major regulatory overhaul was
carried out under which RBI undertook a historic
consolidation of over 9,000 legacy circulars into 244
cohesive Master Directions to reduce compliance
burden, duplication, and interpretation challenges,
replacing scattered instructions with a streamlined
framework.

In addition to the above, RBI vide its notification dt.
05.12.2025 has issued the "Reserve Bank of India
(Non-Banking Financial Companies - Undertaking of
Financial Services) (Amendment) Directions, 2025"
and the "Reserve Bank of India (Commercial Banks
- Undertaking of Financial Services) (Amendment)
Directions, 2025" which clarify the roles of banks and
their group entities in conducting financial and non¬
financial activities, including agency business, referral
services, lending, and investment management.

As per the notification, if lending activity is carried out by
any of the group entities of a Commercial Bank, regulations
as applicable to Upper Layer NBFC shall be applicable
to that group entity of the commercial bank. Since your
Company is engaged in lending activity and is part of a
Canara Bank group entity, as per RBI's notification, your
Company falls under the category of Upper Layer NBFCs.
Your Company has taken all necessary actions to comply
with the amended Directions, including alignment
of operations with prudential norms applicable to
Upper Layer NBFCs and updating internal policies and
procedures. Further, Canara Bank has submitted to RBI

the compliance status report in this regard, as mandated
under the RBI Directions.

Your Company has complied with the Reserve Bank of
India (Housing Finance Companies) Directions, 2025
and Reserve Bank of India (Non-Banking Financial
Companies - Registration, Exemptions and Framework
for Scale Based Regulation) Directions, 2025 and has
adhered to all the guidelines and circulars issued by
RBI on asset classification of credit / investments,
credit rating, acceptance of deposits, Fair Practices
Code (FPC), Most Important Terms and Conditions
(MITC), Customer Complaints Redressal Mechanism,
Know Your Customer (KYC), Anti-Money Laundering
(AML) Guidelines, Asset Liability Management,
Capital Adequacy Ratio (CAR) norms, Information
Technology Frameworks, CERSAI, Implementation of
Indian Accounting Standards (Ind AS), Appointment
of Statutory Auditors, Guidelines on Reporting and
Monitoring of Frauds in Housing Finance Companies
and all other related instructions, guidelines and
circulars issued by the RBI in letter and spirit with an
explicit notification on the website of the Company, to
the extent applicable.

Further, your Company is compliant with all the
Key regulatory changes during FY 2025-26 including
the prohibition of certain prepayment charges,
Introduction of the PRAVAAH Portal for streamlined
regulatory approvals, mandatory updation / periodic
updation of KYC norms etc.

Your Company has complied with other related
statutory Guidelines / Directions / Policies as applicable
to the Company from time to time. Compliance of
all Regulatory directions / guidelines of NHB/RBI,
other statutes are periodically reviewed by the Audit
Committee and the Board.

IRDA Compliance:

Your Company is registered with Insurance Regulatory
and Development Authority of India (IRDAI) for carrying
on the Insurance Agency Business and has complied
with the applicable requirements under Insurance
Regulatory and Development Act, 1999 and IRDAI
(Registration of Corporate Agent) Regulations, 2015,
as amended from time to time. Being an insurance
intermediary, the Company is maintaining all the
required information as per IRDAI rules. The Company
has put in place an appropriate policy on maintenance
of records and destruction of old records as required
under IRDA Guidelines.

The Company has established partnerships with leading
insurance providers like Bajaj General Insurance,
IndusInd (Reliance) General Insurance, Tata AIG
General Insurance, Life Insurance Corporation of India
(LIC) and Canara HSBC Life Insurance Company Limited.
This collaboration allows us to offer our customers a
comprehensive range of insurance options, ensuring
vital coverage for their property, life, and potential
critical illnesses.

Further, your Company is compliant with the National
Housing Bank Advisory, ensuring that borrowers are
provided with the choice of at least two insurance
companies (for Life and General Insurance) whenever
insurance products are sold.

^ Other Compliances:

RBI vide its Circular No. RBI/2022-23/34 DOR.CRE.
REC.28/21.04.048/2022-23 dated April 21,    2022,

has inserted para "103A. Legal Entity Identifier
for Borrowers" under "Chapter XIV of RBI Master
Directions, 2021. As per the said para it was advised
that non-individual borrowers enjoying aggregate
exposure of '5 Crores and above from banks and
financial institutions (FIs) shall be required to obtain
LEI codes as per the prescribed timeline. The Company
had already obtained on April 04, 2018, the Legal
Entity Identifier No.335800EJ9Y3XDP5ZDH81 under
the erstwhile RBI/2017-18/82-DBR.No.BP.92/21.04.
048/2017- 18 dated November 02, 2017, as advised by
NHB. The Company has renewed the LEI codes for FY
2025-26.

Your Company has registered on TReDS Platform
through Receivables Exchange of India Limited (RXIL)
vide registration No.CA0000876. The Company has paid
the annual fee for maintenance of the said registration.

15. COMPLIANCE UNDER THE COMPANIES ACT,
2013:

Your Company has complied with the requirements of
the applicable provisions of the Companies Act, 2013,
and related Rules during FY 2025-26.

(i) ANNUAL RETURN:

As per the requirements under Section 92(3) of
the Companies Act, 2013 and the rules framed
thereunder, the copy of the draft Annual Return for
FY 2025-26 has been uploaded on the Company's
website. A copy of the annual return can be
accessed at:    https://www.canfinhomes.com/

Investor/investorspagecontentwfs/annual return.

For other compliance- related details, please refer
to the Secretarial Audit Report enclosed with this
Report as Annexure-1.

(ii)    SIGNIFICANT AND MATERIAL ORDERS PASSED
BY THE REGULATORS:

During the year under review, there were no significant
or material orders passed by any Regulators, Courts
or Tribunals that could impact the Company's going
concern status or its future operations. Further, no
penalty was levied or imposed on the Company by
the Regulators i.e. NHB/RBI.

(iii)    DETAILS OF APPLICATION MADE OR ANY
PROCEEDING PENDING UNDER THE
INSOLVENCY AND BANKRUPTCY CODE, 2016:

During the year under review, the Company did not
make any application, and no proceedings were
pending against the Company under the Insolvency
and Bankruptcy Code, 2016.

(iv)    DETAILS OF DIFFERENCE BETWEEN AMOUNT
OF THE VALUATION DONE AT THE TIME OF ONE
TIME SETTLEMENT AND THE VALUATION DONE
WHILE TAKING LOAN FROM THE BANKS OR
FINANCIAL INSTITUTIONS ALONG WITH THE
REASONS THEREOF:

During the year under review, there was no instance
in which the Company carried out any valuation for
one-time settlement for loans taken from Banks or
Financial Institutions.

(v)    CHANGE IN THE NATURE OF BUSINESS:

During the year under review, there was no change
in the nature of the business of your Company.

(vi)    MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY:

There were no material changes and commitments,
affecting the financial position of your Company
that could have an impact on its future operations
or its status as a "Going Concern", between the end
of FY 2025-26 and the date of this report.

(vii) RECOVERY ACTION UNDER SECURITISATION &
RECONSTRUCTION OF FINANCIAL ASSETS AND
ENFORCEMENT OF SECURITY INTEREST ACT,
2002 (SARFAESI ACT):

During the year under review, no action was
initiated against the Company under the SARFAESI
Act, 2002.

(viii)    SHARES WITH DIFFERENTIAL RIGHTS:

During the year under review, your Company
did not issue any shares with differential rights.
Accordingly, no information as required under
Section 43(a)(ii) of the Act read with Rule 4(4) of the
Companies (Share Capital and Debenture) Rules,
2014 has been furnished.

(ix)    issue of sweat equity shares:

During the year under review, your Company did
not issue any sweat equity shares. Accordingly,
no information as required under Section 54(1)(d)
of the Act read with Rule 8(13) of the Companies
(Share Capital and Debenture) Rules, 2014 has
been furnished.

(x)    disclosure UNDER SECTION 67(3) OF THE ACT:

During the year under review, there were no
instances of non-exercise of voting rights in
respect of shares purchased directly by employees
under such scheme. Accordingly, no information
pursuant to Section 67(3) of the Act read with Rule
16(4) of Companies (Share Capital and Debentures)
Rules 2014 has been furnished.

(xi)    loan from directors or their relatives:

During the year under review, your Company
did not take any loan from the Directors or their
relatives.

(xii) PARTICULARS OF HOLDING, SUBSIDIARY AND
ASSOCIATE COMPANIES (INCLUDING JOINT
VENTURES):

Your Company does not have any Holding,
Subsidiary and Associate Companies, including
any Joint Ventures. Further, the Company is an
Associate Company of Canara Bank.

(xiii)    appointment of designated person

UNDER COMPANIES (MANAGEMENT AND
ADMINISTRATION) RULES 2014- RULE 9 OF THE
COMPANIES ACT, 2013.

In accordance with Rule 9 of the Companies
(Management and Administration) Rules 2014, your
Company is required to designate a responsible
individual to ensure compliance with statutory
obligations.

Accordingly, the Board at its meeting held on
December 22, 2023, appointed Shri Nilesh Jain, VP
& Company Secretary, as the Designated Person.

The same shall be reported in the Annual Return of
the Company.

^alteration    of memorandum of

ASSOCIATION AND ARTICLES OF ASSOCIATION:

During the financial year under review, your
Company has not altered its Memorandum of
Association and Articles of Association.

16.    AUDITORS COMMENTS ON AUDITORS
REPORT:

The Statutory Auditors have confirmed that they satisfy
the criteria of independence as required under the
provisions of the Companies Act, 2013. The Statutory
Auditors of the Company have not reported any fraud
to the Audit Committee or the Board of Directors under
Section 143(12) of the Companies Act, 2013 read with
Rule 13 of the Companies (Audit and Auditors) Rules,
2014. The Auditors' observation, if any, read together
with the Notes to Accounts, is self-explanatory and
therefore does not call for any comment.

17.    CORPORATE SOCIAL RESPONSIBILITY (CSR):

During the financial year under review, your Company
has re-constituted a Corporate Social Responsibility
(CSR) Committee as prescribed under Section 135 of
the Companies Act, 2013 and has put in place the CSR
Policy of the Company.

Your Company has directed its efforts toward sectors
that matter most to society - education, healthcare,
environmental sustainability, renewable energy, sports
promotion, animal welfare, women empowerment,
sanitation & safe drinking water, and community welfare.

Your Company initiatives primarily focused on
promoting education including special education for
underprivileged and tribal students. Several activities
were undertaken to ensure that children have access
to quality learning opportunities and supportive
infrastructure. These included construction, repair, and
upgradation of classroom blocks and toilet facilities
to create safe and inclusive spaces for students.
The Company also provided classroom furniture and
educational kits to Government schools to enhance
the teaching and learning experience. Scholarship
programs were extended to underprivileged children,
with particular emphasis on supporting girls' education.
In addition, drinking water facilities were installed in
schools to promote health and well-being.

Your Company remains committed to strengthening
healthcare infrastructure, particularly in underserved
rural communities. The essential medical equipment
and machinery were supplied to Government hospitals
and Primary Health Centers, helping quality of care for
patients. Drinking water facilities were also provided to
improve community health and hygiene.

Environmental sustainability has been identified
as another key area of focus. During the year,
your Company undertook several initiatives aimed
at reducing environmental impact and fostering
sustainable practices In FY 2025-26, your Company
undertook a comprehensive ESG gap analysis and
portfolio emissions assessment, establishing a strong
foundation for its sustainability journey. The gap
analysis highlighted the Company's strong social
performance while identifying critical areas such as
resource management, water systems, bio-diversity,
and supply chain governance for further strengthening,
alongside continued progress in climate and labour-
related aspects. In parallel, a detailed climate risk
and financed emissions assessment, aligned with the
PCAF framework, enabled the Company to establish
a baseline understanding of its portfolio exposure to
physical and transition risks and quantify emissions
across mortgage and investment portfolios.

Your Company also assessed its operational GHG
emissions (Scope 1, Scope 2, and Scope 3), reporting
total emissions of 3,225.55 MTCO₂e, with purchased
electricity as the primary contributor. Building on
these insights, your Company has initiated targeted
sustainability measures, including energy efficiency
improvements, rooftop solar adoption, water
conservation initiatives, and increased digitalization
to reduce paper usage etc. These efforts reflect a
structured shift from assessment to action, integrating
ESG considerations into business strategy, risk
management, and operational practices.

Furthermore, your Company is deeply committed in
promoting animal welfare and ensuring the humane
treatment of all living beings. Our efforts during the
year focused on supporting shelters and veterinary
care facilities, providing veterinary equipment to
improve the health and well-being of animals in need.

Additionally, the Company undertook several
environmental sustainability initiatives aimed at
reducing its ecological footprint and supporting

community resilience. These included tree plantation
drives to enhance green cover and improve bio-diversity,
as well as projects focused on waste management,
water conservation, and rainwater harvesting.
Special emphasis was placed on promoting clean
and renewable energy solutions, with rooftop solar
power systems installed across government schools,
hostels, and primary health care centres to reduce
dependence on conventional energy sources. Further,
public solar lighting systems were deployed in rural
villages, contributing to improved safety and security
for local communities. Together, these efforts reflect
a structured transition from assessment to action,
embedding ESG considerations into business strategy,
risk management, and operational practices.

To encourage young talent, especially in rural areas,
your Company supplied sports equipment and
established multi-purpose courts in Government
schools. Your Company also contributed to the welfare
of vulnerable groups by supporting old age homes,
orphanages, and residential homes for differently
abled individuals.

As a prudent measure your Company has conducted
an Impact assessment for FY 2024-25 from an external
independent agency. The feedback received justified
our efforts and confirmed that 3,39,736 individuals were
benefited across multiple states in India. These projects
were strategically aligned with the ESG framework
and contributed to 13 United Nations Sustainable
Development Goals (SDGs). The initiatives spanned
broad thematic areas including promoting education,
healthcare, women empowerment, environmental
sustainability, and other social development priorities.

CSR Activities Undertaken during FY 2025-26:

Your Company strives to be a socially responsible
Company and strongly believes in overall development,
which is beneficial for the society at large, as a
part of its Corporate Social Responsibility ("CSR")
initiatives. Through the CSR program, your Company
sets the goal of reaching a balance that integrates
human, environmental and community resources.
By means of integrating and embedding CSR into its
business operations and participating proactively in
CSR initiatives, your Company intends to contribute
continuously for sustainable development efforts. As
per the Companies Act, 2013, as prescribed, companies
are required to spend at least 2% of their average net
profits for three immediately preceding financial years.
In FY 2025-26, the Company supported 226 CSR projects
benefiting 4,55,593 individuals with an expenditure of
'1947.14 lakhs. These CSR initiatives were implemented
Pan-India basis, executed through Registered Office
and the branch in those areas. The total allocated
CSR budget for FY 2025-26 was '1906.00 lakhs. The
Company sanctioned '1947.14 lakhs during the year,
out of which '1321.66 lakhs were utilized during
the fiscal year. The remaining sanctioned amount of
'625.47 lakhs has been transferred to unspent CSR
Account, in accordance with the provisions of the
Companies Act, 2013 and will be disbursed as per the
progress of the projects.

Further, the Chief Financial Officer confirmed to the
Board of Directors vide certificate dated May 18, 2026,
that the funds disbursed have been utilized for the
purpose and in the manner approved by the Board for
FY 2025-26.

The information regarding the Company's spending under its Corporate Social Responsibility (CSR) Policy, along with reasons for any
unspent balance carried forward during the current year, is disclosed as Annexure - 2 to the Directors' Report, which forms part of the
Annual Report.

A copy of the CSR Policy can be accessed on the Company's website athttps://www.canfinhomes.com/Policies and Codes.

18. HUMAN RESOURCES DEVELOPMENT:

Our employees are the cornerstone of the Company's
success. Their knowledge, dedication, aptitude, and
skills are invaluable assets that drive organizational
growth. We remain committed to empowering them
through continuous learning, development initiatives,
and a supportive work environment, ensuring they
are fully equipped to perform their responsibilities
with excellence and efficiency.

In FY 2025-26, we reaffirmed our commitment
to employee development by implementing a
comprehensive training program that included both
in-person and virtual sessions. These programs were
conducted by internal experts as well as external
experts from renowned institutions such as NHB,
NIBM, IIBF, CAFRAL, IIMs, RBI, NHRD, and PHDCCI.

The key areas of focus for our training included
risk management, credit operations, account
management, housing finance, customer service,
grievance redressal, CRM practices, and regulatory
compliance. Extensive training on Environmental,
Social, and Governance (ESG) practices was attended
by employees and directors, and the insights of the

same was shared across the branches for promoting
environmental and social awareness among
employees. In line with our commitment to ethical
conduct and a safe workplace, training sessions were
also conducted on preventive vigilance, human rights,
and Prevention of Sexual Harassment (PoSH).

These sessions aimed to reinforce a culture of
accountability, inclusivity, and respect across all levels
of the organization. Some of our in-person training
initiatives included Induction Programs for Officers,
Assistant Managers, and Deputy Managers, Induction
Training for Managers and Senior Managers, Soft Skills
Training for Branch Managers, Best Practices Training
for Inspecting Officials, and Sales and Marketing
Training. Our executives participated in various
leadership development programs organized by
external organizations. These programs included "Sales
Leadership & Sales Force Motivation in the Digital Era"
and "Managing and Leading Teams" by IIM, as well as
"Governance and Risk Management" and "Financial
Frauds and Forensic Audit" offered by CAFRAL.

Additionally, your Company participated in the
"Certified PoSH Investigator Certification Program"

by NoMeansNo and several other programs. Notably,
your company also engaged in providing specialized
training aimed at empowering women leaders, such as
"Career Accelerator: Evolving as a Leader." "Executive
Knowledge Exchange" programs were organized
for top management on various topics to promote
cross-functional learning and knowledge sharing.
All our training initiatives reflect our commitment
to fostering a skilled, ethical, and customer-focused
workforce.

The Company has also put in place "Equal Opportunity
Policy" as per Section 21(1) of Rights of the Persons
with Disabilities Act, 2018.

The Statement containing details of employees
as required in terms of Section 197 of the Act read
with Rule 5(1), 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the disclosures with respect
to the remuneration of Directors, Key Managerial
Personnel and employees of the Company have been
provided in Annexure - 6 to this Board's Report.

19. DETAILS OF ESOP SCHEME IMPLEMENTED
BY THE COMPANY:

CFHL Employee Stock Option Scheme - 2024

Your Company has introduced the CFHL Employee
Stock Option Scheme-2024 (ESOP Scheme 2024) in
the year 2024 to reward performance and foster long¬
term commitment among employees towards the
growth of the Company. The Scheme was designed
in compliance with the SEBI (Share-Based Employee
Benefits and Sweat Equity) Regulations, 2021, as
amended from time to time, to enable employees
to participate in the Company's future growth and
financial success.

During the year under review, 12,240 options were
vested to 45 Option Grantees under Tranche 1 of
the ESOP 2024 at an exercise price of '842.80/- per
shares. These options were granted to the identified
employees by the Nomination Remuneration and HR
Committee at its meeting held on 25/11/2024.

Further, the Nomination, Remuneration & HR
Committee approved the Grant of 1,76,377 options
under Tranche 2 of the ESOP Scheme 2024 at an
exercise price of '884.55/- per share, to the identified
employees. The granting of Options under this
Scheme is aligned with the Company's Nomination

Remuneration and HR Policy. Grants are made based
on various factors, including the employees' tenure
with the Company, performance ratings achieved
over the past four quarters, penalties, if any, involving
amounts of '1,00,000 and above, assessment of
future potential, and other criteria as determined by
the Committee.

Grant wise details of options vested, exercised
and cancelled are provided in note no. 19.6 to the
standalone financial statements.

The ESOP 2024 is in compliance with the provisions
of Companies Act, 2013 and SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations,
2021. Further, the detailed disclosures relating to
Tranche-2 of ESOP 2024 have been uploaded on the
Company's website athttps://www.canfinhomes.com/
Investor/investorpagecontentwithannouncements/
Announcements.

Based on the vesting schedule of the ESOP Grantees,
your Company has opened window for exercise of
option under the ESOP Scheme 2024 from April 15,
2026, to April 30, 2026. During the said period 11
employees exercised their options. Thereafter, the
Board at its meeting held on 08/06/2026 approved
the allotment of 466 equity shares at an exercise
price of '842.80/- per share ('2/- Face Value and
'840.80/- premium) to the ESOP Grantees and the
Paid-up Capital of the Company has been increased
to that extent.

Accordingly, as on the date of this report, the paid-
up capital of the Company stood at '26,63,09,182/-
(13,31,54,591 equity shares of '2/- each).

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

Your Company has put in place a policy for prevention
of sexual harassment in accordance with the
requirements of the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal)
Act, 2013.

Your Company has re-constituted its Internal
Complaints Committee to redress complaints received
in relation to sexual harassment at the workplace as
detailed below :

INTERNAL COMPLAINTS COMMITTEE:

All employees (permanent, contractual, temporary and trainees) are covered under this policy.

Following are the details of the complaints received by the Company during FY 2025-26:

21.    COMPLIANCE WITH MATERNITY BENEFIT
ACT, 1961:

Your Company reaffirms its commitment to the welfare
of its female employees and confirms full compliance
with the provisions of the Maternity Benefit Act, 1961,
as amended from time to time. A comprehensive
maternity leave policy is in place to provide appropriate
support during the maternity period. Under this policy,
eligible female employees with no more than two living
children are entitled to maternity leave of up to 12
months during their service (six months per child).

The policy also provides for six weeks of paid leave in
the event of a miscarriage or medical termination of
pregnancy, in accordance with applicable law. Through
these measures, your Company remains committed
to safeguarding the health, well-being, and statutory
rights of its female employees through compassionate
and legally compliant workplace practices.

22.    NOMINATION REMUNERATION AND HR
(NRC) COMMITTEE AND ITS POLICY:

Your Company has constituted a Nomination,
Remuneration and HR Committee (NRC) Committee

of the Board in terms of Section 178 of the Companies
Act, 2013, read with Regulation 19 of the SEBI (Listing
Obligations & Disclosure Requirements) Regulations,
2015 and Reserve Bank of India (Non-Banking Financial
Companies - Governance) Directions, 2025. The
Committee identifies persons who are qualified to
become Directors of the Company. The appointment,
renewal, re-appointment, re-categorization and/
or removal of such Directors including extension
or continuation of their term of appointment, is
recommended by the NRC to the Board.

The Committee has also laid down the criteria for
identifying persons who may be appointed to the senior
management of the Company. The NRC has formulated
the criteria for determining the qualifications, positive
attributes and independence of a director, and for
carrying out the evaluation of the performance of every
Director, the Board as a whole, and its committees.

The Board has ensured the evaluation of the
performance of the Board, its committees and
individual Directors through meetings of Independent
Directors, meetings of the Nomination, Remuneration

and HR Committee, and independent evaluation by
each Director, for the year ended March 31,2026.

The NRC Policy of the Company, covering all the
above aspects, is made available on the website at
https://www.canfinhomes.com/Policies and Codes
in terms of Section 134(3) of the Companies Act, 2013.

23. TRANSFER OF UNCLAIMED AND UNPAID
DIVIDEND/ DEPOSIT AMOUNTS TO THE
INVESTOR EDUCATION AND PROTECTION
FUND (IEPF):

In terms of Section 124 and 125 of the Companies
Act, 2013, the amounts (dividend, deposits etc., with
interest) that remained unclaimed and unpaid for
more than 7 years from the date they first became
due for payment, should be transferred to IEPF. As an
investor friendly measure, your Company has been
intimating the respective shareholders/depositors /
investors to encash their dividend warrant / renew
matured deposits or lodge their claim for payment of
dues, if any, from time to time and the claims made
were settled. As per the statutory requirements, the
details of such amounts are made available on the
website of MCA-IEPF at www.iepf.gov.inas well as on
the Company's website www.canfinhomes.com.

In order to pay dividend amounts online, the members
/ investors are requested to get their shares converted
from physical to DEMAT mode, register their bank
account particulars and / or opt for ECS facility.

a) Unclaimed dividends

As at March 31, 2026, dividends aggregating to
'3.14 Crore (Previous year '2.12 Crore) relating to
dividends declared for the years FY 2018-19 to FY
2025-26 (of which '0.41 Crore related to Interim
dividend for the year 2026), had not been claimed
by members. As an investor friendly measure,
your Company has intimated members to lodge
their claims and related particulars with the
Company/ RTA. The dividend pertaining to 2017¬
18, which remained unclaimed/unpaid amounting
to '0.24 Crore (in respect of 3211 shareholders),
was transferred to IEPF on August 22, 2025, after
settlement of claims by members received in
response to the individual reminder letters sent
by your Company to the respective members.
The dividend pertaining to 2018-19 remaining

unclaimed and unpaid, amounting to '0.21 Crore
(in respect of 2,214 shareholders) as at March 31,
2026, would be transferred to IEPF during August
2026 after settlement of the claims, if any, received.
The Company takes various initiatives to reduce
the quantum of unclaimed dividend and has been
periodically intimating the concerned members,
requesting them to encash their dividend before it
becomes due for transfer to the IEPF. Please refer
to the Corporate Governance Report for more
detailed information on the subject.

b) Transfer of shares to IEPF:

Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund)
Amendment Rules, 2017 was notified by the
Ministry of Corporate Affairs (MCA) on October 13,
2017. As per Rule 6 of the said Rules, the shares,
in respect of which dividend amounts have not
been paid or claimed for 7 consecutive years, are
required to be transferred to 'IEPF demat Account'
of IEPF Authority. On verification of records of
unpaid / unclaimed dividend, during FY 2025-26,
371 shareholders had not claimed dividend for
7 consecutive years and 2,84,276 Shares have been
transferred to IEPF within the prescribed period
i.e. on 25/09/2025. The details of such transfer
are provided on the website of the Company. For
more details, please refer 'General Information to
shareholders' in this report.

The status of shares transferred to IEPF as at
March 31,2026, is detailed as below:

In terms of the above Rules, reminder letters were
sent by the Company to all the shareholders who
had not claimed their dividends for a consecutive
period of 7 years, informing that their shares will be
transferred to IEPF suspense account on the due
date i.e., September 21, 2026, if they do not place
their claim for unclaimed dividend amounts to the
Company. Your Company has provided the related
details on its website athttps://www.canfinhomes.
com/Investor/investorpagecontentwithsm/iepf.

c)    Unclaimed deposits:

Deposits remaining unclaimed for a period of
seven years from the date they became due for
payment, shall be transferred to the Investor
Education and Protection Fund (IEPF) established
by the Central Government. The concerned
depositor can claim the deposit from I EPF. As
required under Section 125 of the Companies
Act, 2013, the unclaimed and unpaid deposits
together with interest for the year 2018-19 were
Nil (previous year '0.089 Crore) that remained
unclaimed and unpaid for a period of 7 years,
were transferred to IEPF during the year under
review.

d)    Unclaimed Suspense Account:

In accordance with the requirement of Regulation
34(3) and Part F of Schedule V to the SEBI Listing
Regulations, details of equity shares in the
suspense account are as follows:

The voting rights on the shares outstanding in
the Suspense account shall remain frozen till the
rightful owner of such shares claims the shares.

24. PARTICULARS REGARDING CONSERVATION
OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND
EXPENDITURE:

(i)    Foreign Exchange Earnings and Outgo:

During the year, your Company did not earn
any income or incur any expenditure in foreign
currency/exchange.

(ii)    Manufacturing Activity:

Since your Company is a Housing Finance Company
and does not carry-out any manufacturing activity,
the requirement relating to providing the particulars
relating to conservation of energy and technology
absorption as per Sec 134(3)(m) of the Companies
Act, 2013 read with Rule 8 of the Companies
(Accounts) Rules 2014, are not applicable.

(iii)    Energy Conservation and Sustainability Initiatives:

Your Company has implemented a range of energy
conservation and sustainability initiatives across
its operations to reduce environmental impact and
enhance resource efficiency. Key measures include
digitization of Board and Committee processes
through Dess Digital Software to minimize paper
usage; transition to energy efficient LED lighting,
motion sensor-based systems, and five star rated
electrical appliances; time-based optimization of
air-conditioning and replacement of old AC units
with energy efficient models; installation of a
25kW rooftop solar power system at the
Registered Office; and lifecycle based replacement
of electrical equipment. Further initiatives include
disposal of old and high emission vehicles,
promotion of video conferencing to reduce travel
emissions, responsible e waste disposal through
certified vendors, segregation of wet and dry
waste, reduction in single use plastics, installation
of low flow water taps, rainwater harvesting, and
promotion of green indoor environments through
indoor plants. These initiatives collectively reflect
the Company's commitment to energy efficiency,
carbon reduction, and sustainable operations.

(iv)    Green Initiatives and Resource Optimization:
To further strengthen its sustainability efforts,
your Company has adopted the following digital
solutions and operational efficiencies:

• Implementation of Dess Digital Software for
electronic sharing of Board and Committee

agenda papers, significantly reducing paper
usage.

•    Disposal of old vehicles, including high
emission two-wheelers, in accordance with
applicable norms as part of the energy
efficiency and emission reduction plan, with
remaining vehicles scheduled for disposal.

•    E-waste disposal through certified vendors,
ensuring environmentally responsible
recycling and waste management.

•    Reduced use of packaged drinking water to
curb single use plastic consumption.

•    Optimization of exterior lighting, including
front lights and glow signboards, to lower
power consumption.

•    Complete replacement of fluorescent tubes
and CFLs with LED lighting across offices
to improve energy efficiency and reduce
electricity consumption.

•    Installation of motion sensor-based lighting
systems in office areas to avoid energy
wastage.

•    Upgradation of old air-conditioners to energy
efficient models and adoption of time-based
regulation of AC usage to reduce electricity
consumption.

•    Use of five star rated, energy efficient
electrical fixtures and appliances across
offices.

•    Transition from desktop computers to all in
one systems to improve energy efficiency.

•    Installation of proper earthing systems to
minimize power losses.

•    Lifecycle based replacement of electrical
equipment to proactively reduce energy
consumption.

•    Segregation of wet and dry waste at source
to support effective waste management.

•    Increased reliance on e-mail and digital
processes instead of printed materials,
promoting paper light operations.

•    Greater use of video conferencing to reduce

business travel and associated carbon
emissions.

•    Installation of a 25 kW rooftop solar power
system at the Registered Office to harness
renewable energy and reduce dependence
on conventional power.

•    Installation of low flow water taps in the new
Registered Office building to reduce water
consumption.

•    Rainwater harvesting system at the Registered
Office to support groundwater recharge and
sustainable water management.

•    Promotion of green indoor environments by
maintaining indoor plants across branches
pan India, contributing to improved indoor
air quality and employee well being

Through these initiatives, the Company reinforces
its commitment to sustainability and responsible
resource management, striving for continuous
improvement in energy conservation.

25. DIRECTORS & KEY MANAGERIAL PERSONNEL:

(i) Appointment of Directors:

During the year under review, the Board of
Directors made the following appointments and
re-appointments of Directors & Key Managerial
Personnel (KMPs) of the Company, based
on the recommendations of the Nomination
Remuneration and HR Committee, after
considering the 'fit and proper' criteria and
performance evaluation of the Directors.

i)    Shri Hardeep Singh Ahluwalia (DIN: 09690464)
was appointed as an Additional Director and
Non-Executive Director (Promoter Director)
on the Board of the Company w.e.f. August 06,
2025. The RBI had approved his appointment
vide letter No.CO.DoR.HGG.No.S3575/18-
02-025/2025-2026 dated August 06, 2025.
Subsequently, the Shareholders approved
his appointment through postal ballot on
October 10, 2025.

ii)    Shri Swarupananda Mallick (DIN: 11164699)
was appointed as a Non-Executive-
Independent Director of the Company for
a first term of 3 (three) years effective from
August 21, 2025. The Shareholders of the
Company approved his appointment at the
38^th AGM held on August 20, 2025.

iii)    Shri Arvind Narayan Yennemadi (DIN:
07402047) was re-appointed as a Non¬
Executive-Independent Director of the
Company for a Second term of 3 (three) years
from the conclusion of the 38^th AGM until the
conclusion of the 41^st AGM to be held for the
FY 2027-28.

iv)    Shri Vikram Saha (DIN:10597814) Deputy
Managing Director of the Company, who was
liable to retire by rotation, was re-appointed
at the 38^th Annual General Meeting (AGM)
held on August 20, 2025.

v)    Based on the recommendation of Nomination
Remuneration & HR Committee, the Board
of Directors, at its meeting held on April
24, 2026, approved the appointment of
Shri Shailesh Kumar Singh (DIN: 11662605)
as an Additional Director and Whole-time
Director (Designated as Deputy Managing
Director) & Key Managerial Personnel
on the Board of the Company. The
appointment of Shri Shailesh Kumar Singh as
a Whole-time Director, designated as Deputy
Managing Director is effective from the date
of RBI approval and the proposal for the
appointment of Shri Shailesh Kumar Singh
is being placed before the members at the
ensuing 39^th Annual General Meeting.

vi)    The Board of Directors, based on the
recommendation of the Nomination,
Remuneration and HR Committee, approved
the re-appointment of Shri Murali Ramaswami
(DIN:08659944) as an Independent Director
for a second term of 3 years w.e.f. the date
of conclusion of the ensuing 39^th AGM of
the Company i.e. from July 29, 2026 with the
same terms and conditions of appointment.
The proposal for the re-appointment of
Shri Murali Ramaswami is being placed before
the members at the ensuing 39^th Annual
General Meeting.

vii)    Based on the recommendation of Nomination
Remuneration & HR Committee, the Board
of Directors, at its meeting held on June 08,
2026, approved the appointment of Smt
Varsha Vasant Purandare (DIN:05288076) as

an Independent Director for a first term of 3
years effective July 30, 2026 till July 29, 2029,
with the terms and conditions of appointment
as decided by the Board. The proposal for the
appointment of Smt Varsha Vasant Purandare
is being placed before the members at the
ensuing 39^th Annual General Meeting.

viii) Shri Suresh Srinivasan Iyer was re-appointed
as Managing Director & CEO of the Company
w.e.f. March 18, 2026 for a tenure of two (2)
years and his Service contract was executed.
The RBI has approved his re-appointment
vide letter No. DoR.HGG.GOV.No./S8096/18-
02-025/2025-2026 dated January 28, 2026.
The terms and conditions of re-appointment
including remuneration was circulated to
the members by way of Postal Ballot and
approved by the members on March 05,
2026.

The Directors have filed their consent(s) and
declaration(s) confirming that they are not
disqualified from being appointed as directors in
terms of the provisions of Companies Act, 2013
read with rules made thereunder.

All Directors, except Shri Suresh S Iyer who holds
100 shares, have informed the Company that
they neither hold any shares nor have they taken
any loan(s) from the Company. Brief profiles of all
the Directors are provided in Page Nos. 47-50 of
this Annual Report.

(ii) Key Managerial Personnel:

The Board of Directors at its meeting held on
March 15, 2025, approved the appointment of
Shri Prashanth Joishy (PAN: ADCPJ9862A), as the
Interim Chief Financial Officer and Key Managerial
Personnel of the Company with effect from March
20, 2025. Further, Shri Joishy resigned from the
position of Interim Chief Financial Officer with
effect from June 30, 2025, consequent to the
onboarding of the regular Chief Financial Officer
of the Company.

The Board of Directors at its meeting held on
March 15, 2025, also approved the appointment
of Shri Abhishek Mishra as the Chief Financial
Officer & KMP of the Company with effect from

the date of his joining i.e. from June 30, 2025. The
appointment was made in accordance with the
provisions of Section 203 and all other applicable
provisions of the Companies Act, 2013 read with
the rules made thereunder.

(iii)    Resignation/Vacation of Office:

i)    The second term of appointment of
Smt Shubhalakshmi Aamod Panse as
Non-Executive and Independent Director,
will be completed at the conclusion of the
ensuing 39^th Annual General Meeting of the
Company. Accordingly, Smt Shubhalakshmi
Aamod Panse will cease to be Non-Executive
Independent Director at conclusion of the
ensuing 39^th Annual General Meeting of the
Company.

ii)    Shri Debashish Mukherjee (DIN:08193978)
Non-Executive Director (Promoter Director)
of the Company resigned from the Board of
the Company w.e.f. May 31,2025, consequent
to his superannuation from Canara Bank as
Executive Director.

iii)    Shri Anup Sankar Bhattacharya
(DIN:02719232) Non-Executive-Independent
Director of the Company vacated the office
of Director at the 38^th AGM held on August
20, 2025, after completion of his first term of
appointment of 3 (three) years.

iv)    Shri K Satyanarayana Raju (DIN:08607009)
Non-Executive Director & Chairman of
the Company resigned from the Board of
the Company w.e.f. December 31, 2025,
consequent to his superannuation from
Canara Bank as Managing Director & CEO.

v)    Shri Vikram Saha, (DIN:10597814) Deputy
Managing Director resigned from the Board
of the Company w.e.f. the commencement
of Business hours of April 15, 2026, on
account of transfer by the Parent Bank
(Canara Bank).

(iv)    Retirement by rotation and re-appointment:

In terms of Section 152 and all other applicable
provisions of the Companies Act, 2013, and
the Articles of Association of the Company,
Shri Hardeep Singh Ahluwalia, Non-Executive
Director, is liable to retire by rotation at the
ensuing Annual General Meeting and being
eligible, offers himself for re-appointment.
The agenda relating to re-appointment of Shri
Hardeep Singh Ahluwalia forms part of the Notice
convening the ensuing Annual General Meeting
and all other relevant information as per Section
102 of the Act, Regulation 36(3) of the SEBI
Listing Regulations and Secretarial Standard-2
on General Meetings issued by the Institute of
Company Secretaries of India are provided in the
explanatory statement.

All the appointments and re-appointments
of the Directors are made by the Board of
Directors based on the recommendations of the
Nomination Remuneration & HR Committee on
'fit and proper' criteria and also based on the
performance evaluation of the Directors.

All the appointments and re-appointments
mentioned above, which form part of the Notice
of the ensuing Annual General Meeting of the
Company, are recommended by your directors to
the members for appointment / reappointment/
approval.

26. MEETINGS OF THE BOARD AND ITS COMMITTEE:

(i) Board of Directors:

The Board of Directors of your Company meets
at regular intervals to discuss and decide upon
the Company's performance and strategies.
During the year under review, the Board met 11
(Eleven) times on April 23, 2025; May 26, 2025;
June 25, 2025; July 19, 2025;September 03,
2025; September 24, 2025; October 18, 2025;
December 15, 2025; January 17, 2026; March 02,
2026; and March 21,2026.

The maximum interval between any two
consecutive meetings of the Board did not exceed
one hundred and twenty days during the year.
Your Company has complied with all applicable
requirements under the Companies Act, 2013
and the rules made thereunder, the SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015, and the Reserve Bank of India
(Non-Banking Financial Companies - Governance)
Directions, 2025 in relation to the Board of
Directors and the Committees of the Board.

Details of the Board Meetings, including those of
various committees constituted by the Board, are
provided in the Corporate Governance Report
forming part of this Annual Report.

(ii)    Committee of the Board:

Your Company has the following 9 (Nine) Board-
level Committees, which have been constituted
in compliance with the business requirements
and the relevant provisions of applicable laws
and statutes. The Committee usually meets on
the day preceding or on the day of the Board
meeting, or as and when the need arises for
transacting business:

•    Audit Committee

•    Nomination Remuneration & HR Committee

•    Corporate Social Responsibility Committee

•    Stakeholders Relationship Committee

•    Risk Management Committee

•    IT Strategy Committee

•    Management Committee

•    Review Committee for classification of Wilful
Defaulters

•    Special Committee of the Board for
Monitoring and Follow-up of Cases of Frauds

A detailed note on the composition of the Board
and its Committees and other related particulars
is provided in the Corporate Governance section
of the Report of Directors forming part of this
Annual Report.

(iii)    Separate meetings of Independent Directors:

In terms of the provisions of Rule 7 of Schedule IV
to the Companies Act, 2013, a separate meeting
of the Independent Directors, excluding all other
directors of the Company, was held on January
27, 2026. The details of the Independent Directors'
meeting are provided in the Corporate Governance
Report forming part of this Annual Report.

27. DIRECTORS' RESPONSIBILITY STATEMENT:

In accordance with the provisions of Section 134(3) (c)
read with Section 134(5) of the Companies Act, 2013,
the Board of Directors of your Company, to the best
of their knowledge, belief and ability and explanations
obtained by them, confirm that:

a)    In the preparation of the Annual Financial
Statements for the financial year ended March 31,
2026, the applicable accounting standards have
been followed along with proper explanation
relating to material departures, if any.

b)    The Directors had selected such accounting
policies and applied them consistently and made
judgements and estimates that are reasonable
and prudent, so as to give a true and fair view of
the state of affairs of your Company, at the end of
the financial year ended March 31,2026 and of the
profit and loss of your Company for that period;

c)    The Directors had taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of the
Companies Act, 2013, for safeguarding the assets
of the Company and for preventing and detecting
fraud and other irregularities.

d)    The Directors have prepared the annual accounts
on a going concern basis;

e)    The Directors have laid down internal financial
controls to be followed by your Company and
that such internal financial controls are adequate
and were operating effectively; and

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

28. DECLARATION BY INDEPENDENT DIRECTORS:

The Board has 5 (five) independent directors as on
March 31, 2026, representing diversified fields and
expertise. The independent directors have submitted
their declarations of independence stating that they
meet the criteria of independence as required in terms
of the provisions of Section 149(6), 149(7) and 149(8)
of the Companies Act, 2013 read with Companies
(Appointment and Qualification of Directors) Rules,
2014 and Regulation 16 of the SEBI Listing Regulations,
as amended from time to time. The Independent
Directors also confirmed that they were not aware of
any circumstance or situation which exists or may be
reasonably anticipated that could impair or impact

their ability to discharge their duties with an objective
of independent judgement and without any external
influence and that they are independent of the
Management. Details of Independent Directors are
provided in the appropriate section of the Corporate
Governance report.

All the Independent Directors of the Company are
persons of integrity, expertise and experience and
have obtained certificates from the Institute notified
under Section 150(1) of the Act, either by completing
the online proficiency self-assessment test or by
way of exemptions from taking the tests, since they
were Directors for more than 10 years from the date
specified.

29.    DIRECTORS & OFFICERS' INSURANCE POLICY:

In accordance with the provisions of the Act and
Regulation 25(10) of the SEBI Listing Regulations, your
Company has an appropriate Directors and Officers
Liability Insurance Policy which provides indemnity in
respect of liabilities incurred as a result of their office.
The policy is renewed every year. The coverage of the
insurance extends to all directors of the Company
including the Independent Directors.

30.    CODE OF CONDUCT:

In terms of Regulation 26(3) of the SEBI (LODR)
Regulations, 2015, all the members of the Board
and Senior Management Personnel have affirmed
compliance with the Code of Conduct of Board of
Directors and Senior Management for the FY 2025-26.

As required under Schedule V (D) of the said Regulations,
a declaration signed by the Managing Director & Chief
Executive Officer of the Company states that the
members of the Board and the Senior Management
Personnel have affirmed compliance of their respective
Codes of Conduct and the same is attached as
Annexure-1 to Corporate Governance Report.

31.    SHARE CAPITAL STRUCTURE:

During the year under review, there was no change in
the capital structure of the Company.

Your Company's capital structure as of 31^st March
2026 is given in the table below:

*The Board of Directors at its meeting held on 08/06/2026
issued 466 equity shares of face value of t2/- each to the
identified employees under the CFHL ESOP Scheme 2024.
Accordingly, as on the date of the report, the paid-up
capital of the Company stood at '26,63,09,182/-
(13,31,54,591 equity shares of '2/- each).

32.    JOINT STATUTORY CENTRAL AUDITORS:

The Company's current Statutory Central Auditors
M/s. Rao & Emmar, Chartered Accountants (Firm
Reg. No. 003084S) and M/s V K Ladha & Associates.,
Chartered Accountants (Firm Reg. No. 002301C)
were appointed as Joint Statutory Central Auditors
of the Company to hold office for a period of three
consecutive years from the conclusion of the 37^th
Annual General Meeting up to the conclusion of
the 40^th Annual General Meeting to be held for the
Financial Year 2026-27.

The Auditors' appointments were made in compliance
with the provisions of Section 139, 141,142 and
all other applicable provisions, if any, of the
Companies Act, 2013, read with Companies
(Audit and auditors) Rules, 2014 and in compliance
with the guidelines issued by the Reserve Bank of
India (RBI), including any amendments, modifications,
variations or re-enactments thereof.

The Auditors' report for FY 2025-26, annexed to the
financial statement for the year under review, does
not contain any qualifications or adverse remark or
disclaimer in his report.

33.    SECRETARIAL AUDITORS & SECRETARIAL AUDIT:

In compliance with the Section 204 of the Companies
Act, 2013 read with Rules made thereunder and
Regulation 24A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (SEBI
Listing Regulations) as amended, the Board of
Directors at its meeting held on April 23, 2025
approved the appointed of M/s. Kedarnath & Karthik,
firm of Company Secretaries FRN-P2023KR098600) as
the Secretarial Auditors of the Company for conducting

Secretarial Audit of the Company and for submission of
the Annual Secretarial Compliance Report for a period
of five consecutive years, commencing from FY 2025¬
26 to FY 2029-30. Subsequently, the Shareholders of
the Company approved their appointment at the 38^th
AGM held on August 20, 2025.

The Secretarial Audit Report for FY 2025-26 does
not contain any qualification, reservation or adverse
remarks. The said report also includes the affirmation
as per NSE Circular No. NSE/CML/ 2023/09 dated
January 25, 2023, and NSE Circular No. NSE/CML/25
dated March 29, 2023, on Standard Operating Process
under SEBI (PIT) Regulations, 2015, for ensuring
compliance with Structured Digital Database ("SDD").
The Secretarial Audit Report issued by the Secretarial
Auditors is enclosed to the Report of Directors as
Annexure-1 in terms of Section 134(3) (f) read with
Section 204(1) of the Act.

In addition to the Secretarial Audit Report, the Annual
Secretarial Compliance Report has also been issued
by the Secretarial Auditors as per the SEBI Circular
No. CIR/CFD/CMD1/27/2019 dated February 08, 2019,
and NSE Circular No. NSE/ CML/2023/30 dated April
10, 2023. The said report has also been submitted to
Stock Exchanges within the prescribed timeline.

34.    COST AUDIT AND COST RECORDS:

Your Company is not required to maintain cost
accounting records as specified under Section 148(1)
of the Companies Act, 2013 read with the Companies
(Cost Records and Audit) Rules, 2014.

35.    PARTICULARS OF CONTRACTS OR
ARRANGEMENT WITH RELATED PARTIES:

Your Company has entered all related party
transactions during the financial year under review
on arm's length basis and in the ordinary course of
the business. In compliance with the provision of
Companies Act, 2013 and SEBI Listing Regulations,
there were no materially significant related party
transactions entered into by your Company with its
Promoters, Directors, Key Managerial Personnel or
other designated persons, which may have a potential
conflict with the interest of your Company at large,
except as stated in the Financial Statements.

As per the policy on Related Party Transactions as
approved by the Board of Directors, your Company

has entered into related party transactions based
upon the omnibus approval granted by the Audit
Committee of your Company. On quarterly basis, the
Audit Committee reviews such transactions, for which
such omnibus approval was given. The policy on
Related Party Transactions was revised during the year
in view of amendments in SEBI Listing Regulations.

As per the SEBI Listing Regulations, the transaction
with a related party shall be considered material, and
would require Members' approval if the transaction(s)
to be entered into individually or taken together with
previous transactions during a financial year exceeds
the following:

The Management of the Company has provided the
Audit Committee (the "Committee") with the relevant
details (as required under the Industry Standards)
about the proposed RPTs including rationale, material
terms, justification as to why the proposed RPT(s)
are in the interest of the Company and the basis of
pricing. The Committee has reviewed and taken note
of the certificate placed before it by the Managing
Director and the Chief Financial Officer (CFO) of the
Company, confirming that the terms of RPTs proposed
to be entered into are in the interest of the Company.
After considering the details on RPT(s) as placed by the
Management, the Committee has granted approval
for both material and non-material related party
transactions proposed for the financial year 2026-27
with the related parties and recommended the board,
the material Related Party Transactions proposed
with Canara Bank aggregating up to the amount of
'4,857 Crore for the FY 2026-27 for their approval.
Accordingly, the Board at its meeting held on June

08, 2026, has considered and approved proposed
material related party transactions and recommended
the same for approval of Shareholders.

The Audit Committee and the Board have noted that
the said transactions will be on an arm's length basis
and in the ordinary course of business of the Company.
Further, the Committee and the Board has confirmed
that the relevant disclosures for decision making of the
Committee were placed before it and, while approving
the RPT(s), the Committee has determined that the
promoter(s) will not benefit from the proposed RPT(s)
at the expense of public shareholders. Further, the
Company may have to enter into transactions with the
Canara Bank like payment of arranger's fees in respect
of CP / NCDs, guarantee fees, transactions with or any
such transactions which cannot be foreseen at present.
The particulars of contracts or arrangements with
the 'Related Parties' referred to in Sub-section (1) of
Section 188 of the Act, are furnished in Note No. 44 of
the Notes forming part of the financial statements for
FY 2025-26, forming a part of the Annual Report. The
particulars of Related Party Transactions as required
u/s Sec 134(3) (h) in the prescribed format (AOC-2) are
attached to this Report as Annexure-3.

Further as required by Reserve Bank of India (Housing
Finance Companies) Directions, 2025, Policy on
Materiality of Related Party Transactions and Dealing
with Related Party Transactions ("RPT Policy") is
annexed to this report and the same can be assessed
on the Company website athttps://www.canfinhomes.
com/Policies and Codes.

36. RISK MANAGEMENT:

Your Company has established a comprehensive
Risk Management framework to identify, assess,
monitor, and mitigate various risks that may impact
on its business operations, financial performance, and
stakeholder interests. The framework is aligned with
regulatory requirements and industry best practices
applicable to housing finance companies.

The Board of Directors has overall responsibility for
risk oversight and has formed a Risk Management
Committee to assist in discharging its responsibilities.
The Committee periodically reviews the Company's
risk profile, risk appetite etc. Senior Management of
the Company is responsible for implementing the risk
management strategies, in ensuring adherence to the
Company's risk management policies, procedures,
and internal controls across all business functions.

The Company's risk management framework covers
Key Risk categories including Credit Risk, Market
Risk, Liquidity Risk, Operational Risk, Interest Rate
Risk, Compliance Risk and Reputational Risk etc.
Appropriate policies, procedures and Standard
Operating Procedures (SOPs) are in place to manage
these risks. Credit Risk is managed through prudent
underwriting standards, portfolio diversification, and
continuous monitoring of asset quality.

Asset Liability Committee (ALCO) headed by MD & CEO
of the Company. The committee reviews ALM, LCR /
Liquidity, Investment decisions, borrowing position &
Collateral Management, Interest rate policy - Annual
Rate Fixation, Revision in ROIs, decisions regarding
Front-end Fees, Yield, Cost of Funds etc., to ensure
adherence to the risk tolerance / limits set by the
Board/ Regulator and to achieve the targeted levels of
growth.

Your Company has an ALCO support group consisting
of Officers/ Managers from functional departments,
who are responsible for the preparation and analysis
of ALM-related MIS, including liquidity and interest
rate risk, monitoring funding positions, ensuring
compliance with regulatory and internal limits, and
conducting stress testing and scenario analysis.
ALCO Support Group meets monthly once or as
and when required, to discuss the agenda items to
be deliberated in ALCO meetings and presents the
required data with analysis, for further deliberation
and decisions in ALCO meetings, which will further
strengthen and improve the oversight of ALCO.
The ALCO committee reviews the minutes of ALCO
Support Group and RMCB reviews the ALCO Minutes on
a quarterly basis. Investment Committee of executives
reviews the investments made by the Company with
respect to market price of the investments made,
renewal or fresh investments required etc., and the
investments are made mainly in G-secs, for LCR/SLR
purposes.

Your Company has Board approved Liquidity
Management Policy including Contingency Funding
Plan (CFP) and ALM Policy and well-defined
architecture to promote the short-term resilience
and to strengthen the overall risk management and
Liquidity Risk profile of the Company. As part of risk
management framework, your company conducts

periodic stress testing and undertakes an Internal
Capital Adequacy Assessment Process (ICAAP) to
ensure capital adequacy under both normal and
stressful conditions.

Operational risks are mitigated through defined
processes, internal controls, system-based validations,
and periodic internal audits. Your Company also
maintains robust IT systems for the easiness and
accuracy of operations. Compliance risk is addressed
through regular monitoring of regulatory changes and
implementation of necessary controls.

Your Company has constituted a Risk Management
Committee of Executives (RMCE) consisting of
functional Heads, who reviews the policies, products
and the overall risk profile and risk rating of the
company and Systems and Procedures Committee
(S&P) consisting of functional Heads reviews the
process, gaps and approves Standard Operating
Procedure / any changes required to improve the
process and controls. Risk Management Committee of
Board (RMCB) reviews and evaluates the overall risks
faced by the Company, based on certification by the
Company's top management and apprises the Board
for further directions.

Your Company follows a structured reporting
mechanism whereby the key risk indicators and
risk exposures are periodically reported to Senior
Management and the Risk Management Committee.
The internal audit function provides independent
assurance on the effectiveness of risk management
and internal control systems.

The Board believes that the Company's risk
management framework is adequate and continues
to be strengthened in line with business growth and
evolving regulatory requirements.

Details regarding the above are covered in the
management discussion and analysis report which forms
part of this Annual Report. In terms of Section 134(3)(n) of
the Act, your Directors wish to state that your Company
has adhered to the Risk Management Policy.

37. AUDIT AND INTERNAL CONTROL:

Your Company has strengthened the existing
internal control systems by introducing measures
for minimizing operational risks commensurate with

the nature of its business and size of operations by
reviews at periodical intervals. The internal audit
function operates independently and adopts a risk-
based approach to provide assurance on the adequacy
and effectiveness of internal controls, governance
processes and risk management practices. Key
processes and controls are reviewed at periodic
intervals, and audit observations are systematically
tracked to ensure timely corrective actions.

Further, your Company has reviewed delegation
of authorities and streamlined standard operating
procedures for all areas of its business, operations,
functions, strengthened the Offsite Transaction
Monitoring System (OTMS) to track transactions
and early-warning signals across all branches by
introducing innovative monitoring tools. To ensure
better asset quality, verification of properties under
fresh disbursement has been increased to 50% from
30% w.e.f. 01/2026. Quality Audit of previous RBIA
compliances has been increased to 100% from 15%
w.e.f. 01/2026. These enhanced controls strengthen
governance oversight and provide assurance on asset
quality, regulatory compliance, and risk mitigation.
The Audit Committee of the Board regularly reviews
internal audit functions, risk areas and the status of
implementation of corrective actions and provides
necessary strategic guidance to management to
further strengthen the internal control environment.

The National Housing Bank conducts inspection of
your Company on an annual basis. During the year, the
NHB conducted regular inspection of your Company
between September 01, 2025, and September 18,
2025, for the position as at March 31,2025. The Report
has been received, and the Company has replied to all
the queries within the prescribed time. Compliance
with the observations was reviewed by the Audit
Committee and the Board.

Your Company has also put in place a well-defined
policy on Risk Based Internal Audit (RBIA) and as per
the said policy, 234 branches, Regd. Office and 6 Zonal
Offices were audited in FY 2025-26.

During the year, 20 loan accounts pertaining to
10 branches, amounting to '4.36 crore have been
declared as fraudulent and have been reported
to the authorities/ regulators. The Company has

taken appropriate remedial actions to avoid future
occurrences of fraudulent activities by tightening
reporting and internal control system.

Your Company has classified these accounts as non¬
performing assets and made 100% provision in line
with regulatory guidelines. The Audit Committee
reviews the audit reports/ remarks/ observations and
replies/ compliances including the compliance of KYC
norms. IS Audit of your Company for review period
August 01, 2024 to July 31, 2025 was conducted by
Canara Bank between 25/08/2025 to 30/08/2025. The
compliance of the observations was reviewed by the
Audit Committee of the Board. Management Audit by
Canara Bank was conducted between 26/08/2025 to
01/09/2025 for the review period August 01, 2024, to
July 31,2025.

38.    DETAILS OF REGISTRAR AND SHARE
TRANSFER AGENT (RTA):

During the year under review, there was no change in
the RTA of the Company. The Company has continued
to engage with the existing RTA. The details of RTA is
given below:

Integrated Registry Management Services
Private Limited

No. 30, Ramana Residency, 4^th Cross,

Sampige Road, Malleswaram,

Bengaluru - 560003
Contact No.: 080-2346 0815-818
E-mail ID: irg@integratedindia.in
Website: www.integratedindia.in
SEBI Reg. No: INR000000544

39.    LOANS, GUARANTEES OR INVESTMENTS:

Your Company, being a HFC registered with the NHB and
engaged in the business of providing loans in ordinary
course of its business, is exempt from complying with
the provisions of Section 186 of the Companies Act, 2013,
with respect to loans.

Accordingly, your Company is exempted from complying
with the requirements to disclose in the financial
statement the full details of the loans given, investment
made, guarantee given, or security provided.

40.    MANAGEMENT DISCUSSION AND ANALYSIS
REPORT:

In terms of Regulation 34(2) of the SEBI Listing
Regulations, the Management Discussion and Analysis
Report details are separately disclosed and forms part
of this Annual Report.

41.    BOARD EVALUATION:

The Nomination Remuneration and HR Policy of your
Company empowers the Nomination Remuneration
and HR Committee to formulate a process for effective
evaluation of the performance of Individual Directors,
Committees of the Board and the Board as a whole.

The Board of Directors formally assess their own
performance based on parameters which, interalia,
include performance of the Board on deciding long¬
term strategies, rating the composition and mix of
Board members, discharging of governance and
fiduciary duties, handling critical and dissenting
suggestions, etc.

The parameters for performance evaluation of the
Directors include contributions made at the Board
meeting, attendance, industry experience, business
operations, domain knowledge, vision, strategy,
engagement with senior management etc.

Pursuant to the provisions of the Companies Act, 2013
and Regulation 17(10) of SEBI Listing Regulations,
the Board of Directors has carried out an annual
performance evaluation of its own performance,
that of its Committees and Individual Directors.
The evaluation was conducted based on a structured
questionnaire considering various criteria such as
composition, strategic inputs, risk oversight, decision¬
making quality and engagement.

The feedback was collected and reviewed by the
Independent Directors and shared with the Board. The
outcome of the evaluation was discussed, and it was
noted that the Board as a whole, its Committees and
Individual Directors continue to function effectively
and contribute meaningfully to the Company's
governance and growth.

Based on the outcome of the performance evaluation
exercise, areas for further development are identified
for the Board to engage itself with; and the same
would be acted upon. The details of the evaluation
process are set out in the Corporate Governance
Report, which forms a part of this Annual Report.

42.    WHISTLE-BLOWER POLICY / VIGIL MECHANISM:

In accordance with the provisions of Section 177(9)
of the Act and the rules made thereunder and
Regulation 22 of the SEBI Listing Regulations, your
Company has established Vigil mechanism and
adopted a Whistleblower Policy under the surveillance

of the Audit committee. Your Company has adopted a
work culture which ensures the highest standards of
professionalism, honesty, integrity, moral and ethical
behaviour.

The Audit Committee shall oversee the Vigil Mechanism
through the Committee and if any of the members of
the Committee have a conflict of interest in a given
case, such member shall recuse themselves and the
remaining members of the Committee shall deal with
the matter on hand.

The objective of the Framework is to establish a
redressal forum, which addresses all concerns raised
on questionable practices and through which the
Directors and employees can raise actual or suspected
violations.

Following are the details of the complaints received by
your Company during FY 2025-26:

During FY 2025-26, two complaints were received
by the Chairman of the Audit Committee. Upon
due evaluation, neither complaint was classified as
a whistle blower complaint under the Company's
Whistle Blower Policy. Consequently, matters were
appropriately addressed and resolved as on March 31,
2026.

The Whistle blower policy framed by your Company
is in compliance with requirement of the Act and
available on the websitehttps://www.canfinhomes.
com/Policies and Codes.

43. CORPORATE GOVERNANCE:

As required under the Companies Act, 2013,
Regulation 34 read with Schedule V of the SEBI (LODR)
Regulations, 2015 and Reserve Bank of India (Housing
Finance Companies) Directions, 2025, the 'Report of
Directors on corporate governance' for the year FY
2025- 26 formed part of this Annual Report. The said
Report covers in detail the Corporate Governance
Philosophy of the Company, Board Diversity,

Director's appointment and remuneration, declaration
by Independent Directors, Board Evaluation,
Familiarization Programme, Vigil Mechanism, etc.
The Auditors' Certificate on Corporate Governance is
provided with this report.

As on Mar'26, your Company adhered to the Internal
Guidelines on Corporate Governance adopted in
accordance with Reserve Bank of India (Housing
Finance Companies) Directions, 2025 issued by
Reserve Bank of India read with Reserve Bank of India
(Non-Banking Financial Companies - Governance)
Directions, 2025, which inter-alia, defines and lays
down the Corporate Governance practices of the
Company towards its various stakeholders. The said
policy is available on the website of the Company.

44.    BUSINESS    RESPONSIBILITY    &

SUSTAINABILITY REPORT (BRSR):

In terms of Regulations 34(2)(f) of the SEBI Listing
Regulations, the top-1000 listed entities, based
on the market capitalization (calculated as on
31^st March of every financial year) shall submit
business responsibility and sustainability report for FY
2025-26 describing the initiatives taken by these listed
entities from an environmental, social and governance
perspective, in the format as specified by SEBI from
time to time. Your Company being amongst top-1000
listed entities, have included the BRSR report for
FY 2025-26 and the same is provided as a part of
annual report as Annexure-5.

45.    COMPANY'S POLICY RELATING TO
DIRECTORS' APPOINTMENT, PAYMENT OF
REMUNERATION AND DISCHARGE OF THEIR
DUTIES:

Your Company has adopted a policy relating to
appointment of Directors, payment of managerial
remuneration, Director's qualifications, positive
attributes, independence of Directors and other
related matters as provided under Section 178
(3) of the Companies Act, 2013. The Nomination,
Remuneration and HR Policy is uploaded on the
website of your Company and is accessible at
https://www.canfinhomes.com/Policies and Codes.

46.    PARTICULARS OF EMPLOYEES:

In terms of Section 197 of the Act read with Rule 5(1)
of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the disclosures with

respect to the remuneration of Directors, Key Managerial
Personnel and employees of the Company have been
provided in Annexure 6 to this Board's Report.

47.    LISTING OF SECURITIES:

The equity shares of the Company continued to be
listed on the BSE Limited (BSE), and the National
Stock Exchange of India Ltd. (NSE). The NCDs issued
on private placement are listed on NSE. Further, the
Company has listed its Commercial Papers (CPs) on
BSE Limited.

48.    SECRETARIAL STANDARDS:

Pursuant to Section 205 of the Companies Act, 2013,
the Company complies with the applicable Secretarial
Standards as mandated by the Institute of Company
Secretaries of India ('ICSI') to ensure compliance with
applicable provisions read together with the relevant
circulars issued by the MCA.

49.    SAVE GREEN EFFORTS & RESPONSIBILITY
TOWARDS SOCIETY:

The Company has always extended its support
to the save green efforts mooted by the Ministry
of Corporate Affairs (MCA), Government of India.
Minimizing paper usage by increasing data storage
digitally, dispatch of Certificates/ information by way
of mail to the customers, utilization of solar energy to
light the branches and for computer operations, are
few of our initiatives in this direction.

In the years, your Company continues to publish only
the statutory disclosures in the print version of the
Annual Report. Electronic copies of the Annual Report,
Annual General Meeting Notices and such other
notices are being sent by e-mail to all members whose
e-mail addresses are registered with the Company/
RTA / Depository participants (DP).

Further, in compliance with MCA circulars, the
Company had been sending Notices for the general
meetings and postal ballot only through e-mails
to the addresses registered by the members with
the Company / RTA/ DP and the general meetings
have been conducted through VC / OAVM facility
and e-voting facilities had been provided for remote
e-voting as well as voting during the general meetings.

Hard copies of the said documents were sent to only
those members and holders of securities / persons
who were eligible to receive the same and who had
requested for the same as prescribed under provisions
of Companies Act and the SEBI LODR Regulations.

The Company has been discharging its Corporate
Social Responsibility diligently and has extended
its support towards green initiatives and details are
covered in Para 17 of this report.

50. OUTLOOK FOR FY2026-27:

The outlook for the upcoming fiscal year centers
on a transition towards a high-yield, technologically
advanced, and nationally diversified housing finance
organization. The strategic roadmap is built upon the
following pillars:

Geographical & Market Expansion:

Executing a strategic push across all the regions equally
to reduce heavy reliance on individual zone and tap
into high-growth urban corridors.

Portfolio Diversification & Yield Optimization:

•    Maintaining a core housing portfolio while steadily
expanding into higher-yield segments such as
Mortgage Loans, other Non-Housing Loans, and
Advanced Processing Facility (APF), to ensure a
steady pipeline of high-quality, vetted lending
opportunities.

•    Increasing penetration in the Self-Employed Non¬
Professional (SENP) category to capture superior
margins through specialized credit handling and
enhanced monitoring.

Technological Transformation & Operational
Excellence:

^ Leveraging Core Banking Solution (CBS) to drive
business process re-engineering, leading to
significant reductions in operating expenses and
manpower optimization.

^ Deployment of AI-powered chatbots, virtual
assistants, and a centralized service desk to
ensure 24/7 omnichannel customer support via
WhatsApp and social media.

^ Utilizing Technology and AI for performance
marketing, digital Out-of-Home (OOH) presence,
and strategic brand positioning to catalyse sales
and publicity.

Sustainability & Green Housing Advocacy:

^ Prioritizing the concept of "Green House" by
incentivizing solar lighting systems, energy-
efficient appliances, and eco-friendly construction
materials/methods.

^ Aligning growth with environmental goals while
unlocking new funding opportunities in the green
finance sector.

Government Alignment & Social Impact:

Capitalizing on the PMAY-U 2.0 and other Government-
led affordable housing programs through the
Beneficiary Led Construction (BLC) scheme. These
initiatives enable several underserved / low-income
families to own permanent assets while simultaneously
driving women's empowerment through mandatory
co-ownership.

51.    AWARDS AND RECOGNITIONS:

Your Company was honored with the Best Digital
Transformation Initiative award in the Housing
Finance segment at the 3^rd Annual NBFC & FinTech
Excellence Awards 2026, held on 26^th February, 2026 in
Mumbai. Organized by Quantic India under the theme
"The Digital First NBFC," this prestigious recognition
celebrates the success of Project Tejas, our flagship
initiative dedicated to building a modern, integrated,
and scalable digital lending ecosystem.

52.    OTHER DISCLOSURES:

During the year under review, your Company is
availing sub-Authentication User Agency (Sub-AUA)
and sub-eKYC User Agency (Sub-KUA) under Canara
Bank's AUA/KUA (Authentication User Agency & eKYC
User Agency) license for Aadhaar authentication and
e-KYC services for Customer Identification.

53.    ACKNOWLEDGEMENT:

The Directors would like to thank Canara Bank, the
promoter, for their continuous support. The Directors
express their sincere gratitude and appreciation
towards all those who have contributed to the success

of the Company during the past year. It is through the
collective effort and dedication of stakeholders that
we have achieved our goals and milestones.

The Directors also express their sincere gratitude to
RBI, NHB, SEBI, BSE Limited, National Stock Exchange
of India Limited, Ministry of Finance, Ministry of
Corporate Affairs, Registrar of Companies, Insurance
Regulatory and Development Authority of India, other
Government and regulatory authorities, lenders,
financial institutions and the Company's bankers for
the ongoing support extended by them.

The Directors would also like to thank our esteemed
customers and shareholders. As the directors reflect on
the accomplishments of the past year, they are deeply
grateful for your unwavering support and partnership.
Your loyalty and trust have been the cornerstone of
our success, empowering us to overcome challenges
and pursue new opportunities with confidence. The
Directors recognize the importance of your continued
commitment, and they remain steadfast in our
dedication to delivering value and excellence in all
that they do.

Lastly, the directors extend their deepest appreciation
to the employees, whose hard work, commitment, and
innovative ideas have been instrumental in driving
the growth and of your company. Their unwavering
dedication and professionalism have played a
significant role in overcoming challenges and seizing
opportunities.

For and on behalf of the Board of Directors

Sd/-

Hardeep Singh Ahluwalia

Place : Bengaluru    Chairman

Date: June 08, 2026    (DIN- 09690464)