LIC Housing Finance Ltd

l Secretarial Audit

' In accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 j and Section 204 of the Companies Act, 2013, the Company

l appointed M/s. BNP & Associates, Practicing Company

Secretaries (Peer Reviewed Firm), as the Secretarial Auditors of the Company for a term of five consecutive financial years commencing from FY 2025-26 to FY 2029-30. The said appointment was duly approved by the shareholders at the Annual General Meeting held on 29^th August, 2025.

M/s. BNP & Associates conducted the Secretarial Audit for the financial year under review with due diligence and . professionalism. The Company is pleased to state that the , Secretarial Audit Report for FY 2025-26 does not contain any t qualifications, reservations, adverse remarks, or disclaimers.

The Secretarial Audit Report in Form MR-3 forms part of this Annual Report and is annexed herewith as Annexure-5.

Cost Records and Cost Audit:

Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Companies Act, 2013 are not applicable in relation to the business activities carried out by the Company.

Corporate Governance

The Company remains steadfast in its commitment to upholding the highest standards of Corporate Governance. The Board of Directors continues to reinforce its dedication to the fundamental principles of transparency, accountability, and ethical conduct. A detailed Corporate Governance Report forms an integral part of this Annual Report, providing a comprehensive overview of the Company's governance framework. The report highlights key aspects including the governance code, composition of the Board, appointment procedures, membership criteria, declarations received from Independent Directors, Board performance evaluation processes, familiarization programmes, vigil mechanism, and other governance practices.

A certificate from M/s. BNP & Associates, Practicing Company Secretaries, Mumbai (UDIN: F005578H000751708), regarding compliance of the conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached to the Corporate Governance Report and the same does not contain any qualification, reservation or adverse remarks.

Management Discussion and Analysis Report

The Management Discussion and Analysis Report for the year under review, pursuant to the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is provided in a separate section and forms an integral part of this Annual Report.

Business Responsibility and Sustainability Reporting by listed entities

The Company has assigned the oversight of the implementation of its Business Responsibility and Sustainability Report (BRSR) principles and policies to the Board's ESG Committee. The CSR-ESG Committee has been vested with the requisite authority to undertake all necessary actions to ensure effective implementation. The BRSR for the reporting year, prepared in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of a separate section in this Annual Report.

The BRSR outlines the Company's performance in alignment with the principles of the National Guidelines on Responsible Business Conduct and the Company's related BRSR policies. It provides members with valuable insights into the Company's Environmental, Social, and Governance (ESG) initiatives.

Depository system

The Company has entered into agreements with both Central Depository Services (India) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) to facilitate trading of its equity shares in dematerialised form. Shareholders may choose a Depository Participant of their preference for holding shares in electronic mode. As on 31^st March, 2026, 3,054 shareholders continue to hold shares in physical form. Pursuant to SEBI regulations, transfer of shares is permitted only in dematerialised form. Accordingly, shareholders holding physical share certificates are advised to dematerialise their holdings at the earliest. Members requiring any assistance in this regard may contact the Company's Registrar and Transfer Agent. Further, shareholders may note that NSDL has been designated as the depository for compliance with various SEBI requirements.

Outlook for FY 2026-27

Going forward, the Company's focus, resources and strategic priorities during FY 2026-27 will be directed towards the following:

• Continuing to fulfil the housing aspirations of individuals while contributing to the Government's vision of ‘Housing for All'.

• Expanding the retail loan portfolio, with continued emphasis on individual housing loans and increasing the share of higher-yielding non-housing retail products.

• Strengthening market presence by expanding marketing intermediaries, developer connectors, distribution partnerships network to enhance customer acquisition.

• Deepening penetration across Tier II, Tier III and emerging urban markets through focused business development and marketing initiatives.

• Simplifying customer acquisition and loan servicing by strengthening digital processes, improving turnaround time and enhancing customer experience.

• Accelerating digital transformation under Project RED by:

a. Strengthening e-appraisal and digital loan origination processes.

b. Enhancing the HomY application to simplify customer on boarding and servicing.

c. Increasing digital onboarding to more than 15% (including HomY).

d. Leveraging data analytics for targeted customer acquisition and portfolio growth.

e. Modernising technology infrastructure to support business scalability and automation.

• Maintaining disciplined growth while achieving 10% loan book growth and delivering low double-digit growth in Assets Under Management (AUM).

• Developing customised products for niche customer segments, including HNIs, Millennials and Gen Z borrowers.

• Expanding strategic alliances, strengthening digital engagement and enhancing brand visibility through focused customer outreach programmes.

• Maintaining prudent underwriting standards and balancing risk and return to deliver sustainable profitability.

Management perspective about future of the Company

Over the past decade, India's housing finance market has expanded steadily, supported by sustained housing demand, improving affordability and a favourable policy environment. Rising aspirations for home ownership, expanding urban centres and greater access to formal credit continue to strengthen the sector's long-term fundamentals.

Valued at approximately ' 44.4 trillion as of March 2026, India's housing finance market is well positioned for sustained long-term expansion, supported by structural growth drivers such as rapid urbanisation, rising household incomes, favourable demographics, increasing formalisation of credit and continued government support for housing.

Against this backdrop, the Company continues to strengthen its position in the housing finance sector through disciplined portfolio growth, improved asset quality and stable Net Interest Margins. Leveraging its extensive branch network, a strong agency force of over 8,500 marketing intermediaries, developer connectors and strategic partnerships, the Company is widening its reach across Tier II and Tier III markets while reinforcing its retail franchise. Continued emphasis on recovery, delinquency management and portfolio monitoring remains central to preserving asset quality.

Technology continues to be a key enabler of the Company's long-term strategy. Through Project RED, the Company is modernising its operating model by strengthening digital loan origination, customer onboarding, servicing and analytics-led decision-making. Continuous enhancements to the HomY application, greater adoption of digital onboarding, process automation and improved turnaround times are expected to enhance customer experience while improving operational efficiency and scalability.

Going forward, the Company will continue to expand its retail portfolio with greater emphasis on higher-yielding products while broadening its presence across emerging customer segments. It also remains committed to supporting affordable housing through the Pradhan Mantri Awas Yojana (PMAY) and developing solutions aligned with the evolving financing requirements of salaried, self-employed and first-time homebuyers.

Alongside growth, the Company will continue to optimise its borrowing profile to maintain a competitive cost of

funds, strengthen Net Interest Margins and improve overall profitability. Robust underwriting standards, prudent treasury management, continuous portfolio surveillance and proactive recovery mechanisms under the SARFAESI Act and other statutory frameworks will remain integral to the Company's risk management approach.

Supported by a trusted brand, one of the industry's widest distribution networks, strong parentage and a technology-enabled operating platform, the Company remains well-positioned to capitalise on the long-term opportunities in India's expanding housing finance market while creating sustainable value for all stakeholders.

Compliance under Companies Act, 2013

Pursuant to section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has diligently fulfilled its compliance requirements. The specific details of compliances under Companies Act, 2013 are as follows:

Annual Return:

In accordance with Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, the Annual Return as on 31^st March, 2026 is available on the website of the Company in the following link (Please download the document and then try to view): https://www.lichousing.com/investors/ annual-report-companies-act.

Reporting of frauds by Auditors:

During the year under review, the Joint Statutory Auditors and the Secretarial Auditors did not report any instances of fraud involving the Company's officers, employees, or external parties. Had any such cases arisen, they would have been disclosed in the Board's report in accordance with Section 143(12) of the Companies Act, 2013.

Secretarial Standards:

During the year under review, your Company has complied with all the applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

Rating Rationale:

Your Company's financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies. The details of credit rating are disclosed in the Corporate Governance Report, which forms part of this Integrated Annual Report.

Board Meetings held during the year:

During the year under review, Seven (7) Board meetings were convened. Detailed information on these Board meetings as well as meetings of several Committees set up by the Board, their composition and attendance record of the members of respective Committees is included in the Report on Corporate Governance which forms integral part of this Annual Report.

Directors' Responsibility Statement:

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) on an accrual basis and under the historical cost convention, except for certain financial instruments that are measured at fair value. The Company complies with the requirements of the Companies Act, 2013 (as amended), the regulations and guidelines issued by the Securities and Exchange Board of India (SEBI), and the directions and guidelines issued by the National Housing Bank (NHB) and the Reserve Bank of India (RBI), collectively referred to as the Previous GAAP in the preparation of these financial statements.

The Indian Accounting Standards (Ind AS) are notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, together with other generally accepted accounting principles in India. The accounting policies have been applied on a consistent basis. Where applicable, newly issued or revised accounting standards have been appropriately incorporated into the existing accounting framework.

In accordance with the provisions of Section 134(3)

(c) and 134(5) of the Companies Act, 2013, and based on the information provided by the management, your Directors state that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed and there are no material departures;

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

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively. Note on internal financial control is attached as Annexure 1 to this Report 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.

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, and considering the work carried out by the internal auditors, statutory auditors, secretarial auditors, and external consultants—including the statutory audit of internal financial controls over financial reporting and the reviews undertaken by management and relevant Board Committees, including the Audit Committee, the Board is of the view that the Company's internal financial controls remained adequate and effective during the financial year 2025-26.

Statement on Declaration from Independent Directors:

The Company has obtained the required declarations from each Independent Director as per Section 149(7) of the Companies Act, 2013. These declarations affirm that the directors satisfy the independence criteria specified in Section 149(6) of the Companies Act, 2013, and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's policy on Directors' appointment and remuneration including criteria:

The Company endeavours to have an appropriate mix of executive, non-executive and independent directors to maintain the independence of the Board and separate its functions of governance and management. As of 31^st March, 2026, the Board comprises of Thirteen (13) members as under:

One (1) Executive Director, being the Managing Director & CEO and two (2) Non-Executive Nominee Directors nominated by LIC of India (‘The Promoter'), the Chairman and the Non-Executive Director, Two (2) Non-Executive and Non-Independent Directors. Eight (8) Non-Executive Independent Directors, including one Independent woman director.

The Nomination and Remuneration Committee has established criteria for assessing the qualifications, positive attributes, and independence of Directors, as well as for determining the remuneration of Directors and Key Managerial Personnel. It has also defined the evaluation criteria and process for Directors, the Chairperson, Non-Executive Directors, and the Board as a whole.

The performance of the members of the Board, and the Board as a whole were evaluated at the meeting of Independent Directors held on 11^th December, 2025 and 25^th March, 2026.

We affirm that except Nominee Directors (Chairman, LIC Nominee Director and Managing Director & CEO), sitting fees is paid to all the other Directors for Board and Committee Meetings attended by them. However, the Managing Director & CEO is being paid remuneration as applicable to an Officer in the cadre of Zonal Manager (Selection Scale) of LIC of India and PLI as per the terms laid out in the Nomination and Remuneration Policy of the Company. The remuneration payable to them has been duly approved by the Board as also by the shareholders of the Company.

Qualification, reservation or adverse remark or disclaimer made by Joint Statutory Auditors and Secretarial Auditor:

There are no observations, qualifications, reservations or adverse remarks in the Joint Statutory Auditors' Report dated 13^th May, 2026 for the financial year 2025-26.

The management accepts responsibility for establishing and maintaining internal controls and has evaluated the effectiveness of the internal control system of the Company details of which have been disclosed to the Auditors and the Audit Committee, the deficiencies, of which the management is aware of, in the design or operation of the internal control systems and has accordingly taken the steps to rectify these deficiencies.

Particulars of loans, guarantees or investments:

Pursuant to Section 186(11) of the Companies Act, 2013, details of loans made, guarantee given, or security provided by the HFC in the ordinary course of its business are exempted from disclosure in the Annual Report to the members.

Particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013 read with Rule 8(2) of Companies (Accounts) Rules, 2014:

Given the nature of the industry in which the Company operates, all Related Party Transactions undertaken during the financial year were carried out in the ordinary course of business and on an arm's length basis. The Company did not enter into any materially significant related party transactions with its Promoters, Directors, Key Managerial Personnel, or other related parties that may have had a potential conflict with the interests of the Company. All Related Party Transactions are subject to review and approval by the Audit Committee and the Board of Directors, wherever applicable. Further, in accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, prior omnibus approval of the Audit Committee is obtained for repetitive transactions and transactions undertaken in the ordinary course of business.

The Related Party Transactions Policy and Procedures, as amended from time to time, as reviewed by the Audit Committee and approved by Board of Directors is uploaded on the website of the Company at https://www.lichousing.com/ investors/policy-codes.

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. 42 of the Notes forming part of the Standalone Financial Statements and the Consolidated Financial Statements for FY 2025-26, forming a part of the Annual Report. This apart, the same is also referred to in Annexure—3 which forms an integral part of the Board's Report.

Form AOC-2 pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014 is annexed as Annexure- 2 to this report.

Material changes and commitments, if any, affecting the financial position of the company:

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company i.e. 31^st March, 2026 and the date of the Board's Report

i.e. 6^th July, 2026

Conservation of energy, technology absorption, foreign exchange earnings and outgo:

Since the Company is engaged in financial services activities, its operations are not energy intensive nor does it require adoption of specific technology and hence information in terms of Section 134(3)(m) of the Act read with the Companies (Accounts) Rules, 2014 is not provided in this Board's Report.

A. Technology absorption -

(i) The Company has demonstrated strong technology absorption by embedding advanced digital solutions across its operations, resulting in seamless, automated, and compliant workflows.

CKYC integration and compliance validation capabilities have been fully institutionalized within internal systems, processes, and teams. This enables end-to-end automation, significantly enhancing the efficiency and accuracy of due diligence while ensuring a completely paperless process. The adoption of DigiLocker for Aadhaar-based e-KYC verification has further minimized dependence on physical documentation, strengthening digital on boarding practices.

Additionally, the integration of Legality's Aadhaar OTP-based e-Sign within the SANCHAY WEB portal facilitates a 100% paperless, remote, and instant on boarding experience. This has substantially reduced turnaround time, lowered operational costs, strengthened regulatory compliance, and contributed to the Company's sustainability goals.

From an infrastructure standpoint, the Company has implemented an Infrastructure-as-a-Service (IaaS) model to enable scalable and efficient application management. This transition has optimized resource utilization, minimized reliance on physical servers, and enhanced overall workload management. Additionally, the platform facilitates real-time monitoring of energy consumption, delivering measurable sustainability benefits. These include a reduced manufacturing footprint, lower operational carbon emissions, approximately 27% reduction in annual energy usage per server,

and up to 53% decrease in overall infrastructure energy consumption.

(ii) The benefits derived from the technology absorption and initiatives undertaken for technological updation and further integrations are mainly towards:

• Paperless Due Diligence through fully digital workflows;

• Enhanced Regulatory Compliance & Accuracy via automated validation systems;

• Cost Optimization driven by reduced infrastructure and operational overheads;

• Improved Data Security & Reliability through centralized and controlled digital systems;

• Minimized Data Rework and Duplication with integrated data flows;

• Efficient Utilization of Infrastructure enabled by scalable cloud-based solutions;

• Efficient energy usage across IT lifecycle.

(iii) There was no imported technology acquired by the Company in the last three years reckoned from the beginning of this financial year;

(iv) The expenditure incurred on Research and Development - Not applicable.

B. Foreign Exchange Earnings and Outgo-

The foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during the year in terms of actual outflows.

During the year ended March 31, 2026, the Company does not have any foreign exchange earnings.

The total foreign exchange outgo during the year was ' 1.65 Crore, which was incurred towards the operating expenses of the Company's Overseas Area Offices.

The above transactions do not include foreign currency cash flows in derivatives and foreign currency exchange transactions.

Risk Management Policy of the Company:

The Board of Directors has established a Risk Management Committee responsible for framing, implementing, monitoring and reviewing the Enterprise Risk Management Policy. The committee also assesses the current status of risk limits specified in the policy and reports to the Board. Under the risk management mechanism, the Company identifies and evaluates risks it faces. For each identified risk, corresponding controls are assessed, and policies and procedures are in place for ongoing monitoring, mitigation, and reporting.

The Board affirms that none of the risks faced by the Company pose a threat to its existence. Additionally, the Company has appointed Mr. J Sangameswar as the Chief Risk Officer, effective from 1^st May 2023, replacing Mr. K Ramesh.

The Company maintains a robust Enterprise Risk Management Policy. During the financial year under review, the Board of Directors reviewed the Policy, which was subsequently approved during the Board Meeting held on 1^st August 2025.

Remuneration Policy

The Company has framed the Remuneration Policy in order to align itself with various provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and RBI Circular DOR.GOV.REC.No.29/18.10.002/2022-23 dated 29^th April, 2022.

The Remuneration policy relating to the remuneration of Directors, Key Managerial Personnel and other employees is as below:

Remuneration to Non-Executive Directors:

The Non-Executive Directors shall be entitled to receive sitting fees for attending meetings of the Board and its Committees, as may be determined by the Board from time to time. Other than such sitting fees, no remuneration, commission, or any other form of compensation shall be payable to them.

In the event the Company proposes to pay remuneration and/ or commission to the Non-Executive Independent Directors in the future, such payment shall be made in accordance with the applicable provisions of the Companies Act, 2013 and Regulation 17(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, and subject to such approvals as may be required.

Remuneration to Non-Executive Nominee Directors:

The Non-Executive Nominee Directors shall not be entitled to any sitting fees for attending meetings of the Board or its Committees. Further, the Company does not provide any salary, remuneration, compensation, or other benefits to the Non-Executive Nominee Directors.

Remuneration to Managing Director & CEO:

The Managing Director & Chief Executive Officer receives remuneration in accordance with the compensation structure applicable to officers in the cadre of Zonal Officer (Selection Scale) of LIC of India. In addition, he is eligible to receive Performance-Linked Incentive (PLI) in accordance with the criteria approved by the Nomination and Remuneration Committee of the Board and duly approved by the shareholders.

Any revision in the pay scales of the Managing Director & CEO, as determined by the Charter/policy prescribed by LIC of India from time to time, shall be correspondingly applicable to the Managing Director & CEO of the Company, in line with the compensation structure applicable to officials in the equivalent cadre. Furthermore, the tenure, terms, and conditions of appointment of the Managing Director & CEO shall be governed by the directives and decisions of LIC of India, as amended from time to time, and shall be subject to the approval of the Board of Directors of the Company.

Notwithstanding the foregoing, the remuneration payable to the Managing Director & Chief Executive Officer shall, at all times, remain within the limits prescribed under the Companies Act, 2013 and Regulation 17(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, modified, or re-enacted from time to time.

Remuneration to Key Managerial Personnel (other than MD & CEO) and other employees:

In the current organizational structure of the Company, the Key Managerial Personnel (“KMP”), other than the Managing Director & CEO, comprise the Company Secretary and the Chief Financial Officer. The remuneration payable to the Company Secretary, Chief Financial Officer, and other employees is determined by the Board of Directors in accordance with the applicable Service Terms and Conduct Rules, 1990, as amended from time to time, and based on the recommendations of the Nomination and Remuneration Committee. Further, the Company has adopted a Compensation Policy for Key Managerial Personnel and Senior Management, which is aligned with the requirements prescribed under the Reserve Bank of India circular dated 29 April 2022 on “Guidelines on Compensation of Key Managerial Personnel and Senior Management in NBFCs.

Except for the Managing Director & CEO, who serves as a Whole-Time Executive Director, none of the other Directors of the Company receives any remuneration other than the sitting fees mentioned above. No additional remuneration or components of a remuneration package, including salary, benefits, bonuses, stock options, pension, performance-linked incentives, or any other perquisites, are paid to them.

Corporate Social Responsibility (CSR) Policy:

Pursuant to the provisions of Section 135 of the Companies Act, 2013, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time, the Company has constituted a Corporate Social Responsibility (CSR) Committee of the Board. The details of the CSR Committee, along with the Annual Report on CSR activities, are provided in Annexure-4 forming part of this Report.

Composition of the Corporate Social Responsibility Committee is as follows:

Annual evaluation made by the Board of its own performance:

The Nomination and Remuneration Committee had formulated and recommended the evaluation criteria and process for the

Directors, Chairperson, Non-Executive Directors, Board-level committees, and the Board as a whole.

The Board of Directors, including the Independent Directors, conducted an annual performance evaluation in compliance with the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The evaluation was undertaken through a circulation process, with the Board's performance being assessed based on feedback received from all Directors. The evaluation criteria encompassed, inter alia, the Board's composition and structure, effectiveness of Board processes and functioning, quality of disclosures and communication, and the availability of timely, accurate, and relevant information to facilitate informed decision-making.

The Board evaluated the performance of its various Committees based on feedback received from the respective committee members. The evaluation criteria included the composition of the Committees, the effectiveness of their meetings, and their overall functioning.

The Board also evaluated the performance of individual Directors based on various parameters, including their participation and contribution at Board and Committee Meetings, preparedness for deliberations, quality and constructiveness of inputs provided, and ability to articulate views effectively and persuasively. In addition, the performance of the Chairman was assessed with reference to the key responsibilities and expectations associated with his role.

The Independent Directors held a meeting on 11^th December, 2025 and 25^th March, 2026 to evaluate the performance of Non-Independent Directors, the Board as a whole, and the Chairman.

Report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the Consolidated Financial Statement:

Pursuant to the provisions of Section 129 of the Companies Act, 2013, the Company has prepared the Consolidated Financial Statements comprising the financial statements of the Company, its subsidiaries, and associates, in the same form and manner as that of the Company. These Consolidated Financial Statements, together with the Standalone Financial Statements prepared under Section 129(2) of the Act, shall be placed before the ensuing Thirty-Seventh Annual General Meeting of the Company. Further, in compliance with the requirements of Indian Accounting Standard (Ind AS) 110 - Consolidated Financial Statements, notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, as issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Company along with its subsidiaries and associates for the financial year ended 31 March 2026 form an integral part of this Annual Report.

In accordance with the provisions of Section 136 of the Companies Act, 2013, the Annual Report of the Company, the Annual Financial Statements and the related documents of the Company's subsidiary and associate companies are hosted on the website of the Company.

Directors:

As on 31^st March, 2026, the Board has Thirteen members, including two (2) Non-executive Non-Independent Directors and one (1) Executive Director nominated by the promoter, Life Insurance Corporation of India. The promoter nominees on the Board are Shri R Doraiswamy#, the Non-Executive Director and Chairman; Shri Ratnakar Patnaik$, Non-Executive Director, and Shri T. Adhikari, the Managing Director & CEO.

In addition to the aforementioned two (2) Non-Executive Nominee Directors, the Board includes two (2) other Non-Executive Non-Independent Directors — Shri P Koteswara Rao and Shri Akshay Kumar Rout.

Other eight (8) members of the Board are Independent Directors including one Independent Woman Director — Smt. Jagennath Jayanthi. The other Independent Directors are viz., Shri Kashi Prasad Khandelwal, Shri Sanjay Kumar Khemani, Shri Ravi Krishan Takkar, Shri Ramesh Lakshman Adige, Shri Anil Kaul, Shri T C Suseel Kumar*, and Shri Masil Jeya Mohan*.

Note:

(#) Shri R Doraiswamy was appointed as Non-Executive Director and Chairman w.e.f. 16^th October, 2025;

($) Shri Ratnakar Patnaik was appointed as Non-Executive Director w.e.f. 13^th June, 2025;

(*) Shri T C Suseel Kumar and Shri Masil Jeya Mohan were appointed as an Independent Directors w.e.f. 2^nd June, 2025.

Succession Planning:

In furtherance of the Company's commitment to business continuity, leadership stability, and the effective execution of its long-term strategic objectives, the Board has established a structured succession planning framework for senior leadership positions. To ensure a smooth and seamless leadership transition with minimal operational disruption, the Board has resolved that the incoming Managing Director & Chief Executive Officer (MD & CEO) shall be appointed well in advance, preferably 4 to 6 months prior to formally assuming office.

Pursuant to Article 138(b) of the Articles of Association of the Company, LIC of India is entitled to nominate up to one-third of the total strength of the Board of Directors of the Company. Accordingly, the Board, after due consideration, approved the deputation of a senior official from LIC of India as its Nominee for the position of Chief Operating Officer (COO) as part of the succession planning process for the office of the Managing Director & CEO. This initiative is aimed at ensuring continuity, organizational stability, and effective implementation of the Company's long-term business strategies within a reasonable transition period,

generally ranging from four to six months prior to the cessation of the incumbent Managing Director & CEO.

In accordance with the said policy and in view of the impending superannuation of Shri T Adhikari the Managing Director & Chief Executive Officer of the Company from the services of LIC of India, the Board had, during the year, appointed Dr. Sanjay Dayal as the Chief Operating Officer to facilitate a smooth leadership transition in line with the Company's succession framework. However, following his sad and untimely demise on May 9, 2026, he ceased to hold the office of Chief Operating Officer. Thereafter, pursuant to the deputation by Life Insurance Corporation of India and based on the recommendation of the Nomination and Remuneration Committee, the Board approved the appointment of Shri Sandeep Kumar as the Chief Operating Officer. His appointment forms an integral part of the Company's succession planning framework and is intended to ensure continuity of leadership, operational stability and seamless transition in the management of the affairs of the Company.

Further, in terms of the Regulation 17 (4) of the SEBI (LODR), 2015 the Company has adopted a succession planning policy for its Key Managerial and senior management personnel which has been hosted on the website of the Company on the below mentioned link:

https://www.lichousing.com/investors/policy-codes

Appointments / Resignations of Directors: Appointments:

Shri Masil Jeya Mohan (DIN: 08502007)

As per the recommendation of the Nomination and Remuneration Committee, which undertook process of due diligence, and considered the candidature to be suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria, the Board at its meeting held on 2^nd June 2025 approved the appointment of Shri Masil Jeya Mohan as an Additional Director (Non-Executive Independent) for a period of five consecutive years, not liable to retire by rotation and the same was approved by the shareholders in the 36^th Annual General Meeting of the Company held on 29^th August, 2025

Shri T C Suseel Kumar (DIN: 06453310)

As per the recommendation of the Nomination and Remuneration Committee, which undertook process of due diligence, and considered the candidature to be suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria, the Board at its meeting held on 2^nd June 2025 approved the appointment of Shri T C Suseel Kumar as an Additional Director (Non-Executive Independent) for a period of five consecutive years, not liable to retire by rotation and the same was approved by the shareholders in the 36^th Annual General Meeting of the Company held on 29^th August, 2025.

Shri Ratnakar Patnaik (DIN: 10283908)

The Company received nomination from LIC of India for appointment of Shri Ratnakar Patnaik on the Board of the Company. The Nomination and Remuneration Committee undertook process of due diligence, and considering the candidature to be suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria recommended the appointment of Shri Ratnakar Patnaik and based on which the Board through resolution by circulation dated 13^th June, 2025 approved the appointment of Shri Ratnakar Patnaik as Additional Non-Executive Director, liable to retire by rotation and the same was approved by the shareholders in the 36^th Annual General Meeting of the Company held on 29^th August, 2025. The appointment was accorded post facto approval by the Reserve Bank of India.

Shri R Doraiswamy (DIN: 1035884)

On the cessation of Shri Siddhartha Mohanty (DIN: 08058830) from the Chairmanship of the Board of the Company, the Nomination and Remuneration Committee in terms of ‘Fit and Proper' criteria adopted by the Board, after having undertaken process of due diligence, and after considering Shri R Doraiswamy (DIN: 1035884) suitable and eligible based on evaluation, qualification, expertise, track record, integrity and ‘fit and proper' criteria, had recommended his appointment to the Board and the Board appointed him as Chairman, Non-Executive Director in the capacity of Nominee Director of the Company with effect from 16^th October, 2025. The Reserve Bank of India subsequently accorded its approval to his appointment as Chairman of the Company. Subsequent to being appointed as an Additional Director under Articles 143 of the Articles of Association of the Company pursuant to the provisions of Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules made thereunder, SEBI Listing Regulations, Master Direction - the Reserve Bank of India (Housing Finance Companies) Directions, 2025 and Circulars issued thereunder from time to time - including any amendment, modification, variation or re-enactment thereof, for the time being in force and in terms of Articles 141, 143 of the Articles of Association of the Company, the appointment of Shri R Doraiswamy as the Chairman and Director, was approved by the shareholders vide Postal Ballot concluded on Thursday, 8^th January, 2026 (being the last day to vote).

Reappointment of Independent Director for Second Term

(a) Smt Jagennath Jayanthi (DIN: 09053493)

Smt Jagennath Jayanthi being eligible for reappointment for second term of five consecutive years, was reappointed as the Director (Independent Category) by the Board with effect from 5^th February, 2026 for second term of five consecutive years up to 4^th February, 2031 and her reappointment as the Independent Director was approved by the members vide Postal Ballot concluded on Friday, 13^th March, 2026 (being the last day of Voting).

Cessations:

1. Shri Jagganath Mukkavali (DIN: 10090437)

Shri Jagganath Mukkavali ceased to be the Non-Executive Director with effect from 30^th May, 2025 on account of his superannuation from the services of LIC of India.

2. Shri Siddharth Mohanty (DIN: 08058830)

Shri Siddharth Mohanty ceased to be the Non-Executive Director and Chairman on the Board of the Company with effect from 7^th June, 2025 on account of his superannuation from the services of LIC of India.

3. Shri V K Kukreja (DIN: 01185834)

Shri V K Kukreja ceased to act as the Non-Executive Independent Director of the Company with effect from 30^th June, 2025 due to completion of his second term of consecutive five years as an Independent Director.

4. Shri Ameet N. Patel (DIN: 00726197)

Shri Ameet N. Patel ceased to act as the Non-Executive Independent Director of the Company with effect from 18^th August, 2025 due to completion of his second term of consecutive five years as an Independent Director.

Director retiring by rotation:

Shri Koteswara Rao Pottimutyala (DIN: 06389741) who has been longest in office would be retiring by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.

Appointments / Resignation of the Key Managerial Personnel:

Shri Tribhuwan Adhikari, Managing Director & CEO, Mr. Lokesh Mundhra, Chief Financial Officer and Ms. Varsha Hardasani, Company Secretary & Compliance Officer, are the Key Managerial Personnel (KMP) as per the provisions of the Companies Act, 2013.

The following changes took place in the positions of the KMPs:

Cessation of Shri Sudipto Sil as Chief Financial Officer

Shri Sudipto Sil ceased to be the Chief Financial Officer of the Company with effect from 17^th April 2025 on account of his transfer and redesignation as the Senior Deputy Regional Manager, Marketing at the Western Regional Office of the Company. He currently serves as General Manager (Project Finance-Marketing) at the Corporate Office.

Appointment of Shri Lokesh Mundhra

Shri Lokesh Mundhra was appointed as the Chief Financial Officer (CFO) of the Company with the approval of the Board of Directors in their Board Meeting held on 17^th April 2025.

Committees of the Board:

The Company has various Committees which have been constituted as a part of the best corporate governance practices and in compliance with the requirements of the relevant provisions of applicable laws and statutes.

The Company has the following Committees of the Board:

I) Audit Committee

II) Stakeholders Relationship Committee

III) Nomination and Remuneration Committee

IV) CSR Committee

V) Risk Management Committee

VI) Executive Committee

VII) Debenture Allotment Committee

VIII) Strategic Investment Committee

IX) IT Strategy Committee

X) Preferential Allotment Committee***

XI) Investment Committee**

XII) Committee for approval of issuance of Duplicate Share Certificate(s)*

XIII) ESG Committee

XIV) Fraud Monitoring Committee

XV) Settlement Committee

***Note: The Preferential Allotment Committee is an event based Committee which had been constituted for the limited purpose of allotment of the Equity Shares on private placement basis to the promoters on 8^th September, 2021.

**Note: The Investment Committee is an event based Committee which has been constituted to meet only in case any investment proposals needs to be considered.

*Note: Committee for approval of issuance of Duplicate Share Certificate(s) has only been constituted to sign and approve the request for issuance of Duplicate Share Certificate(s). The approval takes place through circulation of the relevant documents to the signing authorities based on their availability. No physical meeting of the said Committee is generally held.

Composition of Audit Committee is as follows:

$ Shri V K Kukreja ceased to act as an Independent Director of the Company, due to completion of his 2^nd consecutive term of 5 years each on the close of business hours of 29^th June, 2025.

*Shri Masil Jeya Mohan has been appointed as an Independent Director of the Company, for a term of 5 years w.e.f. 2^nd June, 2025

There is no instance, during the financial year, when the recommendations of Audit Committee have not been accepted by the Board.

The details with respect to the compositions, powers, roles, terms of reference etc. of relevant committees are given in detail in the Report on Corporate Governance which forms part of this Report.

Subsidiaries and group companies

As on 31^st March, 2026, the Company has four Subsidiaries namely, LICHFL Care Homes Limited, LICHFL Asset Management Company Limited, LICHFL Trustee Company Private Limited and LICHFL Financial Services Limited. The Consolidated financial statements incorporating the results of all the subsidiaries of the Company for the year ended 31^st March, 2026, are attached along with the statement pursuant to Section 129 of the Companies Act, 2013, with respect to the said subsidiaries. Brief write up including performance and financial position of each of the subsidiaries are provided as under:

1. LICHFL Care Homes Limited

LICHFL Care Homes Limited, a wholly owned subsidiary of LIC Housing Finance Limited, was incorporated on 11^th September, 2001. The basic purpose of incorporating the Company was to establish and operate ‘assisted living community centres' for the senior citizens.

During the FY 2025-26, the Company reported Losses before Tax of ' 6.04 Crore and Losses after Tax stood at ' 6.04 Crore.

The Company has successfully completed a project at Bangalore in two Phases and Jeevan Anand Project at Bhubaneswar.

2. LICHFL Asset Management Company Limited

The Company was incorporated on 14^th February 2008. The Company is in the business of managing, advising, administering Private Equity Funds including Venture Capital Fund (VCF) and Alternate Investment Fund (AIF).

LICHFL Urban Development Fund have total of 9 portfolio investments of ' 461.30 Crore Against total of 9 portfolio investments of ' 461.30 Crore, portfolio level IRR of 17.04%; achieved on basis of cash received of ' 689.81 Crore from 7 complete exits and 1 partial exit. This excludes amounts to be received from 2 subsisting portfolio companies. The Fund expects to generate overall Portfolio level return of 17.78% IRR after exit from the balance two portfolio companies.

This Fund has Corpus of ' 765 Crore out of which Fund has made cumulative drawdown call and received ' 764.23 Crore The Fund has Invested ' 697.26 Crore across 7 portfolio companies (10 projects) out of which Fund has exited 3 portfolio companies (6 projects). As on March 31, 2026, Fund has received ' 595.49 Crore from return from Portfolio Companies and Mutual Funds (including ' 38.11 Crore as management fees and ' 2.10 Crore as other fee income). Distributed ' 557.10 Crore to the investors. On basis of investments made, distribution received and valuation, the Fund is poised to achieve a Portfolio level IRR of 20.23%.

The Company has also launched another fund which was registered with SEBI-LICHFL Real Estate Debt Opportunities Fund - I on 30^th March 2021 under AIF Category II of SEBI Alternate Investment Fund Regulations 2012 (AIF). The Fund is having a target corpus of ' 3,000

Crore (Base corpus of '2,000 Crore plus '1,000 Crore as green shoe option). The Fund is envisaged to be raised from both Domestic and Overseas Investors. The focus sector of the Fund is Housing. The Fund has received commitment of 300 Crore from LIC of India, 450 Crore from LIC Housing Finance Limited, 65 Crore from Indian Bank and IDBI Bank.

During the FY 2025-26, the Company earned a Profit before Tax (PBT) of '15.21 Crores and Profit after Tax (PAT) stood at '10.57 Crores. The Company has recommended dividend @ 50% for FY 2025-26 on It's paid-up share capital.

3. LICHFL Trustee Company Private Limited

The Company was incorporated on 5^th March, 2008. The Company is undertaking the business of trusteeship services for Venture Capital Funds (VCFs) and Alternative Investment Funds (AIFs).

The Company was appointed as Trustee in 2010 for LICHFL Fund and further appointed LICHFL Asset Management Company Limited (LICHFL AMC) as Investment Manager for the Fund. In 2010 the Company had registered LICHFL Fund with SEBI as Venture Capital Fund (VCF) under the SEBI (Venture Capital Funds) Regulations, 1996. LICHFL Urban Development Fund achieved its financial closure with '529.35 Crore on 30^th March, 2013.

The Company was appointed as Trustee in 2017 for LICHFL Housing & Infrastructure Trust (LHIT) and further appointed LICHFL AMC Ltd. as Investment Manager for LICHFL Housing and Infrastructure Fund (LHIF). The Company had received registration for LHIF on October 2017 from SEBI under Alternative Investment Fund Regulations, 2012 as Category-I Infrastructure. LICHFL AMC launched LICHFL Housing & Infrastructure Fund (LHIF) in October 2017 and achieved initial closing on March 31, 2018. The Fund announced its final closing on March 31, 2021.

The Company was appointed as Trustee on 30^th March 2021 for a New Fund registered with SEBI-LICHFL Real Estate Debt Opportunities Fund - I on 30^th March 2021 and appointed LICHFL AMC Ltd. as Investment Manager for the Fund.

During the FY 2025-26, the Company earned a Profit before Tax (PBT) of '0.37 Crores and Profit after Tax (PAT) stood at '0.31 Crores.

4. LICHFL Financial Services Limited

LICHFL Financial Services Limited, a wholly owned subsidiary of LIC Housing Finance Limited, was incorporated on 31^st October, 2007, for marketing of housing loan, insurance products (Life and General Insurance), mutual funds, fixed deposits, credit cards. It became operational in March, 2008 and at present has 48 offices spread across the country.

The vision of the Company is “SARVESHAM POORNAM BHAVATU” - to provide complete financial solutions” to secure not only the present but also the future of the customer and his family. In this endeavour, the marketing officials assist at every step - right from financial planning to manage every aspect of investment, both for the short & long term.

At present, the Company distributes Life Insurance products of LIC of India, Home Loans & Fixed Deposits of LIC Housing Finance Limited, Mutual Funds of various fund houses, General Insurance products of United India Insurance Company Limited, Tata AIG General Insurance Company Limited and HDFC ERGO General Insurance Company Ltd., Health Insurance products of Aditya Birla Health Insurance Co. Ltd. and Star Health and Allied Insurance Co. Ltd., Credit Cards of LIC Cards Services Limited and Point of Presence for National Pension System (NPS). More business verticals will be added depending on market opportunities and customer needs.

The Company has earned a Profit before Tax (PBT) of '26.46 Crores and Profit after Tax (PAT) stood at ' 18.17 Crores for the FY 2025-26 and recommended dividend @ 30% for FY 2025-26 on paid up share capital of ' 9.50 Crores.

The Company is striving to improve its Performance across all Business verticals in the coming years.

Name/s of Company/ies which have ceased / become subsidiary/joint venture/associate: None

As on 31^st March, 2026, the Company has two associate companies namely LIC Mutual Fund Asset Management Company Limited and LIC Mutual Fund Trustee Company Private Limited.

The Company does not have any material Subsidiary within the meaning of the term under Regulation 24 of the SEBI (LODR)Regulations.

The Annual Report which consists of the financial statements of the Company on standalone as well as consolidated financial statements of the group for the year ended March 31, 2026, has been sent to all the members of the Company. It does not contain Annual Reports of Company's subsidiaries. The Company will provide Annual Report of all subsidiaries upon receipt of request by any member of the Company. These Annual Reports are also available on Company's website viz www.lichousing.com.

No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status as also the operations of the Subsidiary Companies in future.

1. LIC Mutual Fund Asset Management Company Limited (LICMFAMC)

LIC Mutual Fund was incorporated on 20^th April 1994. LIC Housing Finance Limited holds 30.33 % equity in this entity. Being an associate company of India's

premier and most trusted brand, LIC Mutual Fund is one of the well-known players in the asset management sphere. With a systematic investment discipline coupled with a high standard of financial ethics and corporate governance, LIC Mutual Fund is emerging as a preferred Investment Manager amongst the investor fraternity.

LIC Mutual Fund endeavours to create value for its investors by adopting innovative and robust investment strategies, catering to all segments of investors. LIC Mutual Fund believes in providing delight to its customers and partners by way of superior investment experience and unparalleled service thereby truly bring them Khushiyaan, Zindagi Ki.

During the FY 2025-26, the Company earned a Profit before Tax (PBT) of ' 10.53 Crores and Profit after Tax (PAT) stood at ' 10.53 Crores.

2. LIC Mutual Fund Trustee Company Private Limited

LIC Mutual Fund Trustee Private Limited (Trustee Company) is the Trustee to the Mutual Fund, LICMFAMC. LIC Housing Finance Limited holds 35.30 % equity in this entity. LIC of India is the Sponsor of the Mutual Fund. The AMC either directly or through third party service providers engaged by the AMC (Service Providers) such as the Registrar and Transfer agents collects, receives, possesses, stores, deals or handles information received from investors/client/customers whether existing or prospective.

The Company has earned a Profit before Tax (PBT) of ' 31.19 lakhs and Profit after Tax (PAT) stood at ' 24.02 lakhs for the FY 2025-26.

Financial details of subsidiaries

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 (‘the Act'), a statement containing salient features of the financial statements of subsidiaries, joint venture and associate companies in Form AOC-1 is attached as Annexure 6. The separate financial statements of the subsidiaries are available on the website of the Company and can be accessed at https://www.lichousing.com/subsidiary-financials

Internal Financial Control Systems and their Adequacy:

The Company has implemented a comprehensive internal financial control framework that is commensurate with the nature, scale, and complexity of its operations. These controls are considered adequate and have been operating effectively throughout the period.

The Board of Directors confirms that the Company has established a robust internal control framework commensurate with the scale and complexity of its operations. Detailed Standard Operating Procedures (SOPs) and Risk Control Matrices have been implemented to provide reasonable assurance over the accuracy and reliability of financial reporting, as well as compliance with applicable statutory and regulatory requirements. These controls are continuously monitored and periodically reviewed to ensure

their ongoing adequacy, effectiveness, and alignment with evolving business needs.

To further strengthen its internal control framework, the Company periodically engages independent external experts to perform objective evaluations of its control systems. The recommendations and best practices arising from these assessments are thoroughly reviewed by the Management and the Audit Committee, and are systematically implemented to support continuous improvement and enhance operational effectiveness.

A detailed note on Internal Financial Controls is provided as Annexure 1 to this report.

Vigil Mechanism / Whistle Blower Policy:

The Company has established a comprehensive Whistle Blower Policy that provides employees and other stakeholders with a formal channel to report concerns pertaining to matters covered under the policy. The policy promotes the reporting of genuine concerns and grievances while ensuring adequate protection against any form of retaliation or victimization of whistle blowers. Additionally, it provides direct access to the Chairman of the Audit Committee, thereby strengthening transparency, accountability, and the integrity of the reporting process.

The Whistle Blower Policy, forming an integral part of the Company's Vigil Mechanism, is reviewed periodically on an annual basis or in line with applicable regulatory changes, as required. During the year, the Board reviewed and approved certain amendments to the policy. The revised policy aims to further enhance the existing framework by promoting a secure and transparent environment that encourages individuals to report concerns in confidence, while ensuring adequate safeguards against victimisation.

During the period under review no concerns or grievances were reported under Vigil Mechanism/ Whistle Blower Policy.

Employee stock option:

The company does not have any Employee stock option scheme. Employee Remuneration:

Disclosure pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

*Remuneration is not paid to Non-Executive Directors (including

Independent Directors) other than by way of sitting fees for attending meetings of the Board and Committees of the Board.

b. The percentage increase in remuneration of each director, Chief Executive Officer, Chief Financial Officer, Company Secretary in the financial year:

*No remuneration is paid to Non-Executive Directors (including Independent Directors) other than sitting fees for attending meetings of the Board and Committees of the Board.

*Remuneration paid to Managing Director & CEO includes the salary for F.Y. 2025-26 and PLLI for FY 2024-25.

**The remuneration of the Chief Financial Officer and the Company Secretary comprises salary for FY 2025-26 and Performance Linked Incentive (PLLI) pertaining to FY 2024-25. The decrease in remuneration of the Chief Financial Officer and the Company Secretary during FY 2025-26 is primarily attributable to the one-time payment of wage revision arrears (effective from August 2022), which was paid during FY 2024-25 and consequently formed part of the remuneration for that year.

c. The percentage increase in the median remuneration of employees in the financial year:

-6.92%*

*The decline in the median remuneration of employees in FY 2025-26 as compared to FY 2024-25 was on account of one-time payment of wage revision arrears (effective from August 2022), which was paid during FY 2024-25.

d. The number of permanent employees on the rolls of the Company:

2399

e. Average percentile increase already made in the salaries of employees other than managerial personnel in the financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

Increase in managerial remuneration for the year was 8.12%. The average annual increase in the salaries of the employees other than managerial personnel during the year was 19.35%.

f. Affirmation that remuneration is as per the Remuneration Policy of the Company:

The Company affirms that the remuneration payable is as per the Remuneration Policy of the Company.

During the year the Company has not engaged any employee drawing remuneration exceeding the limit specified under Section 197(12) read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

In terms of Section 136(1) of the Companies Act, 2013 read with the Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board's Report is being sent to all the shareholders of the Company excluding the annexure containing names of the top ten employees in terms of remuneration drawn. Any shareholder interested in obtaining a copy of the said annexure may write to the Company at: The Company Secretary, LIC Housing Finance Limited, Registered Office, 131 Maker Towers, ‘F' Premises, 13^th Floor, Cuffe Parade, Mumbai - 400 005.

Compliance under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Pursuant to the amendments introduced under the Companies (Accounts) Second Amendment Rules, 2025 vide MCA Circular dated May 30, 2025, and in compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has adopted a comprehensive Policy on Prevention, Prohibition and Redressal of Sexual Harassment at the Workplace and has established a robust mechanism for addressing and resolving complaints reported thereunder. Further, the Company has constituted Internal Committees at its 10 Regional Offices as well as at the Corporate Office. These Committees comprise both internal and external members possessing adequate experience and expertise in the relevant field.

The Committee comprises of minimum 4 members of which 3 are internal members (2 female and 1 male) and 1 external member.

The Company is committed to fostering and maintaining a safe, healthy, and inclusive work environment for all employees, free from any form of discrimination. To reinforce this commitment, the Company regularly conducts awareness initiatives, training sessions, and workshops aimed at sensitizing employees on the prevention of sexual harassment in the workplace.

Pursuant to the provisions of Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the complaints received thereunder and the details relating thereto are as follows:

(a) Number of complaints received in the year: Nil

(b) Number of complaints disposed of during the year: One

(c) Number of cases pending more than ninety days: Nil

(d) Number of workshops or awareness programme against sexual harassment carried out: 11

(e) Nature of action taken by the employer or district officer: Nil

It may be noted that the Company has Zero tolerance towards any action on the part of any executive / staff which may fall under the ambit of ‘Sexual Harassment' at workplace and is fully committed to uphold and maintain the dignity of every woman working in the Company.

Compliance under the Maternity Benefit Act, 1961:

Pursuant to the amendment introduced under the Companies (Accounts) Second Amendment Rules, 2025 vide MCA Circular dated May 30, 2025, the Company hereby confirms its compliance with the applicable provisions of the Maternity Benefit Act, 1961. All eligible women employees have been provided benefits in accordance with the requirements prescribed under the Act. The Company remains committed to fostering a supportive, equitable, and gender-inclusive work environment, with continued emphasis on the welfare and well-being of working mothers.

Significant and Material Orders Passed by Regulators/ Exchanges

During the year, no significant or material orders were passed by the regulators or courts or tribunals that would impact the going concern status or operations of the Company in future.

Human resources

High-performing and productive employees play a crucial role in the Company's overall success. The organization strives to align its HR practices with business objectives, enhance workforce productivity by strengthening employees' knowledge and skills, and create a supportive work environment that fosters a sense of ownership. HR processes were reviewed during the year to identify opportunities for further improvement.

The Company recognizes and values the dedication and contributions of its employees toward its performance over the year. It undertook recruitment for multiple roles and promoted employees to assume greater responsibilities. In addition to fixed compensation, benefits, and perquisites, the Company offers performance-based incentives to reward employees who achieve specified targets and demonstrate exceptional performance. As part of its commitment to nurturing and retaining top talent, the Company organized and sponsored various training programs, seminars, and conferences aimed at enhancing skills and knowledge across different operational areas. Furthermore, a Talent Management Program was introduced to identify and develop a pipeline of future leaders capable of taking on strategic roles within the organization.

Cyber Security

The Company has established a Board-approved Cyber Security Policy that defines the overarching framework for cyber risk management and resilience, in alignment with

applicable regulatory guidelines issued by the Reserve Bank of India (RBI). The policy is supported by detailed internal standards, procedures, and control frameworks designed to ensure consistent implementation and governance across the organization.

The Company has adopted a risk-based approach to cyber security and has implemented industry-aligned technologies and controls to support its digital initiatives. These controls are integrated with well-defined processes to safeguard the confidentiality, integrity, and availability of information assets, and to protect the Company's network, endpoints, and data from unauthorized access and cyber threats.

A multi-layered security architecture has been deployed, incorporating preventive, detective, and responsive controls. This includes the use of advanced threat intelligence platforms to enable proactive identification, monitoring, and mitigation of both internal and external threats. The Company has further implemented security solutions such as next-generation firewalls, endpoint detection and response (EDR), security monitoring systems, and deception technologies, which collectively enhance its cyber defence capabilities.

The Company has also established continuous monitoring, incident response, and vulnerability management practices to ensure timely detection and mitigation of cyber risks. Regular security assessments, including vulnerability assessments and penetration testing, are conducted to evaluate the effectiveness of controls and to address emerging threats. Cyber resilience is integrated with the Company's Business Continuity and Disaster Recovery frameworks to ensure operational continuity in the event of cyber incidents.

To strengthen the human element of cyber security, the Company conducts periodic cyber security awareness programs for employees and stakeholders. In addition, the technology and information security teams undergo ongoing training and capability-building initiatives to stay abreast of evolving threat landscapes, regulatory expectations, and industry best practices.

Details of Application made or any Proceedings pending under the Insolvency and Bankruptcy Code, 2016 (31 Of 2016) during the year along with their status as at the end of the Financial Year

There is no application made or pending against the Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).

Awards and Recognitions:

During the financial year 2025-26, the Company was honoured with the following awards in recognition of its excellence and significant contribution to the housing finance sector:

1. NHB Excellence Awards-1^st Edition - Best Housing Finance Company.

2. Radio City Business Titans Awards - Excellence in Outstanding Contribution to Housing Finance Sector.

3. Mirchi Business Class - Bali 2026 - Excellence In Housing Finance.

These recognitions reflect the Company's unwavering commitment to operational excellence, customer-centricity and its continued contribution to the growth of the housing finance sector.

CSR and ESG Awards

1. FICCI CSR Summit & Awards 2025 - Special Jury Commendation Award in the Women Empowerment category.

2. Pritvi Awards 2025 by the ESG Research Foundation -

Excellence in ESG & Sustainability Initiatives.

3. India CSR Awards 2025 - Excellence in Waste Management Initiative.

4. 8^th ICC Social Impact Awards 2026 - Runner-up in the Gender Equality and Empowerment category.

These recognitions reflect the Company's unwavering commitment to business excellence, customer-centricity, sustainable development and responsible corporate citizenship, while reaffirming its continued contribution to the housing finance sector and the communities it serves.

Acknowledgments

The Board of Directors places on record its sincere appreciation for the valuable guidance, support, and cooperation extended by the Life Insurance Corporation of India, the National Housing Bank, the Reserve Bank of India, and the Company's banking partners. The Board also conveys its heartfelt gratitude to the Company's customers, lenders, investors, and members for their continued trust, confidence, and patronage. Further, the Board acknowledges and highly appreciates the commitment, dedication, and invaluable contributions of the employees, whose efforts have played a significant role in the Company's sustained growth and success.