1. We have audited the accompanying standalone financial
statements of CreditAccess Grameen Limited ('the
Company'), which comprise the standalone Balance
Sheet as at 31 March 2026, the standalone Statement
of Profit and Loss (including Other Comprehensive
Income), the standalone Statement of Cash Flows and
the standalone Statement of Changes in Equity for the
year then ended, and notes to the standalone financial
statements, including material accounting policy
information and other explanatory information.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 ('the Act') in the
manner so required and give a true and fair view in
conformity with the Indian Accounting Standards ('Ind
AS') specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015
and other accounting principles generally accepted in
India, of the state of affairs of the Company as at 31 March
2026, and its profit (including other comprehensive
income), its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act.
Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the
Audit of the standalone financial statements section
of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India ('ICAI') together with
the ethical requirements that are relevant to our audit of
the standalone financial statements under the provisions
of the Act and the rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone financial statements of the current
financial year. These matters were addressed in the
context of our audit of the standalone financial statements
as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
|
Key audit matters
|
How our audit addressed the key audit matter
|
|
Impairment of financial assets based on Expected
Credit Losses (ECL) - (Refer note 3.14 for material
accounting policy information and notes 7 and Note
41.2 for financial disclosures in the accompanying
standalone financial statements)
As at 31 March 2026, the Company reported total gross
loans of H 29,038.31 crores (31 March 2025: H 25,583.08
crores) and expected credit loss provisions of H 1,115.58
crores (31 March 2025: H 1,308.63 crores). The Company
has written off loans of H 1,968.45 crores (31 March 2025:
H 1,124.29 crores) during the year ended 31 March 2026.
|
Our audit focused on assessing the appropriateness of
management's judgment and estimates used in the expected
credit losses through the following procedures, but were not
limited to, the following procedures:
- Examined the Board approved policy governing the
methodology for computation of ECL that addresses policies
and procedures for assessing and measuring credit risk on
the lending exposures of the Company in accordance with
the requirements of Ind AS 109. Further, also examined the
documentation by management on the parameters and
assumptions used in the ECL model, and its rationale.
|
|
Key audit matters
|
How our audit addressed the key audit matter
|
|
Ind AS 109, Financial Instruments (Ind AS 109) requires the
|
- Obtained an understanding of the modelling techniques
|
|
Company to provide for impairment of its financial assets
|
adopted by the Company including the key inputs
|
|
using the expected credit loss ('ECL') approach involving
|
and assumptions. Since modelling assumptions and
|
|
an estimation of probability of loss on the financial assets
|
parameters are based on historical data, we assessed
|
|
over their life, considering reasonable and supportable
|
whether historical experience was representative of
|
|
information about past events, current conditions and
|
current circumstances and was relevant.
|
|
forecasts of future economic conditions which could
|
- Assessed and tested the design and operating
|
|
impact the credit quality of the Company's financial assets.
|
effectiveness of the key controls over the completeness
|
|
Expected credit loss cannot be measured precisely but
|
and accuracy of the key inputs and assumptions
|
|
can only be estimated. The estimation of impairment loss
|
considered for calculation, recording and monitoring of
|
|
allowance on financial instruments involves significant
|
the impairment loss recognized.
|
|
judgement and estimates and applying appropriate
|
- Evaluated the appropriateness of the Company's
|
|
measurement principles.
|
determination of significant increase in credit risk in
|
|
The expected credit loss on loans is calculated using the
|
accordance with the applicable accounting standard and
|
|
percentage of probability of default (PD), loss given default
|
the basis for classification of exposures into various stages.
|
|
(LGD) and exposure at default (EAD) for each of the stages
|
- Tested the completeness of loans included in the Expected
|
|
of loan portfolio. The PD and the LGD are the key drivers
|
Credit Loss calculations as of 31 March 2026 by reconciling
|
|
of estimation complexity in the ECL and as a result are
|
it with the balances as per loan balance register. On a test
|
|
considered the most significant judgmental aspect of the
|
check basis, we tested the EAD, evaluated management's
|
|
Company's modelling approach.
|
assessment of parameters such as probability of default
|
|
The Expected Credit Loss ("ECL") is measured at 12-month
|
(PD) or loss given default (LGD) and also tested the data
|
|
ECL for Stage 1 loan assets and at lifetime ECL for Stage 2
|
used in the PD and LGD model for ECL calculation by
|
|
and Stage 3 loan assets.
|
reconciling it to the source data. Further, we tested assets
|
|
Significant management judgment and assumptions
|
in stage 1, 2 and 3 on a sample basis to verify that they
|
|
involved in measuring ECL is required with respect to:
|
were allocated to the appropriate stage.
|
|
• segmentation of loan book in buckets;
|
- On a test check basis, ensured compliance with RBI Master
|
| |
Directions on 'Reserve Bank of India (Non-Banking Financial
|
|
• determining the criteria for a significant increase in
|
Companies - Income Recognition, Asset Classification and
|
|
credit risk, including qualitative factors;
|
Provisioning) Directions, 2025 dated 28 November 2025,
|
|
• factoring in future economic assumptions;
|
in relation to identification, upgradation and provisioning
|
|
• past experience and forecast data on customer
|
of non-performing assets (NPAs) and ensured that the
|
|
behaviour on repayments; and
|
Company has classified NPAs as credit impaired loans.
|
|
• techniques used to determine probability of default,
|
- Evaluated the appropriateness of the methodology and
|
|
loss given default and exposure at default basis the
|
policy laid down and implemented by the Company for
|
|
default history of loans, subsequent recoveries made
|
the loan portfolio written-off during the year and tested
|
|
and other relevant factors.
|
the write-offs on a sample basis.
|
|
The disclosures (including disclosures prescribed by RBI)
|
- In addition to the above procedures, we have obtained
|
|
regarding the Company's application of Ind AS 109 are key
|
written representations from the management in relation
|
|
to explaining the key judgements and material inputs to
|
to appropriateness of such ECL methodology and
|
|
the Ind AS 109 ECL results.
|
reasonableness of the judgements and assumptions used.
|
|
Considering the significance of the above matter to the
|
- Assessed the appropriateness and adequacy of the
|
|
standalone financial statements, degree of estimation
|
related presentation and disclosures in the accompanying
|
|
uncertainty and significant management judgment
|
financial statements in accordance with the applicable
|
|
involved, this area requires significant auditor attention
|
accounting standards and related RBI circulars/ guidelines.
|
|
to test the calculation of expected credit losses, and
|
|
|
this matter has been identified as a key audit matter for
|
|
|
current year audit.
|
|
|
Key audit matters
|
How our audit addressed the key audit matter
|
|
Information technology system for accounting and
|
Our key audit procedures with the involvement of our IT
|
|
financial reporting process
|
specialists included, but were not limited, to the following:
|
|
The Company is dependent on its information technology
|
- Obtained an understanding of the Company's information
|
|
('IT') systems due to processing and recording of large
|
processing systems, databases, operating systems and
|
|
volume of business transactions daily across various
|
IT General Controls, automated controls and manual IT
|
|
locations. Accordingly, the Company's accounting
|
dependent controls which were relevant to our audit;
|
|
and financial reporting processes are dependent on
|
- Tested the design and operating effectiveness of the
|
|
automated and manual IT dependent controls which
|
Company's IT controls over the IT applications as identified
|
|
impact key financial accounting and reporting items such
as loans, interest income, computation of daily Days Past
|
above.
|
|
Due (DPD) amongst others.
|
- On such IT systems, we have tested the IT General
Controls around user access management, system
|
|
The controls implemented by the Company in its
|
change management, and IT operational controls along
|
|
IT environment determine the integrity, accuracy,
|
with segregation of duties around program maintenance,
|
|
completeness and validity of data that is processed by the
|
security administration and over key financial accounting
|
|
applications and is ultimately used for financial reporting.
|
and reporting processes;
|
|
Since our audit strategy included focus on entity's
|
- Tested the automated controls, manual IT dependent
|
|
information processing systems relevant to our audit
|
controls and information generated by the entity's
|
|
due to their pervasive impact on the financial statements
|
information processing systems for loans, interest income
|
|
and efforts involved in testing of the IT general controls,
automated controls and manual IT dependent controls of
|
and computation of daily DPD ;
|
|
the IT systems, we have determined the use of information
|
- Tested other areas that were assessed under the IT
|
|
processing system for accounting and financial reporting
|
control environment included backup management,
|
|
as a key audit matter.
|
batch processing and interfaces; and
- In addition to the above procedures, we have obtained
written representations from management on whether
IT general controls, automated IT controls and manual
IT dependent controls are designed and were operating
effectively during the year.
|
Information other than the Standalone Financial
Statements and Auditor's Report thereon
6. The Company's Board of Directors are responsible for
the other information. The other information comprises
the information included in the Annual Report, but
does not include the standalone financial statements
and our auditor's report thereon. The Annual Report is
expected to be made available to us after the date of this
auditor's report.
Our opinion on the standalone financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance.
Responsibilities of Management and Those
Charged with Governance for the standalone
financial statements
7. The accompanying standalone financial statements have
been approved by the Company's Board of Directors.
The Company's Board of Directors are responsible
for the matters stated in section 134(5) of the Act with
respect to the preparation and presentation of these
standalone financial statements that give a true and
fair view of the financial position, financial performance
including other comprehensive income, changes in
equity and cash flows of the Company in accordance
with the Ind AS specified under section 133 of the Act
and other accounting principles generally accepted in
India. This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
8. In preparing the standalone financial statements, the
Board of Directors are responsible for assessing the
Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.
9. The Board of Directors are also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
standalone financial statements
10. Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with Standards on Auditing will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
standalone financial statements.
11. As part of an audit in accordance with Standards on
Auditing, specified under section 143(10) of the Act
we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control;
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to standalone financial
statements in place and the operating effectiveness
of such controls;
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management;
• Conclude on the appropriateness of Board of Directors'
use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor's report to the related disclosures in the
standalone financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor's report. However, future events or
conditions may cause the Company to cease to continue
as a going concern; and
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
12. We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
13. We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
14. From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the standalone
financial statements of the current period and are
therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that
a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory
Requirements
15. As required by section 197(16) of the Act, based on our
audit, we report that the Company has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under section 197
read with Schedule V to the Act.
16. As required by the Companies (Auditor's Report) Order,
2020 ('the Order') issued by the Central Government of
India in terms of section 143(11) of the Act we give in the
'Annexure A', a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
17. Further to our comments in 'Annexure A', as required by
section 143(3) of the Act based on our audit, we report,
to the extent applicable, that:
a) We have sought and obtained all the information
and explanations which to the best of our knowledge
and belief were necessary for the purpose of
our audit of the accompanying standalone
financial statements;
b) Except for the matters stated in paragraph 17(h)
(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion, proper books of
account as required by law have been kept by the
Company so far as it appears from our examination
of those books;
c) The standalone financial statements dealt
with by this report are in agreement with the
books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under
section 133 of the Act;
e) On the basis of the written representations received
from the directors and taken on record by the Board
of Directors, none of the directors is disqualified
as on 31 March 2026 from being appointed as a
director in terms of section 164(2) of the Act;
f) The qualification relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph 17(b) above on reporting
under section 143(3)(b) of the Act and paragraph
17(h)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules,
2014 (as amended);
g) With respect to the adequacy of the internal financial
controls with reference to financial statements
of the Company as on 31 March 2026 and the
operating effectiveness of such controls, refer to
our separate report in 'Annexure B' wherein we
have expressed an unmodified opinion; and
h) With respect to the other matters to be included
in the Auditor's Report in accordance with rule
11 of the Companies (Audit and Auditors) Rules,
2014 (as amended), in our opinion and to the
best of our information and according to the
explanations given to us :
i. the Company, as detailed in note 34 and note
48(ix) to the standalone financial statements,
has disclosed the impact of pending litigations
on its financial position as at 31 March 2026.
ii. the Company, as detailed in note 6(B) to the
standalone financial statements, has made
provision as at 31 March 2026, as required under
the applicable law or accounting standards, for
material foreseeable losses, if any, on long¬
term contracts including derivative contracts;
iii. There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Company during
the year ended 31 March 2026;
iv. a. The management has represented
that, to the best of its knowledge and
belief, as disclosed in note 48(vi) to the
standalone financial statements, no
funds have been advanced or loaned or
invested (either from borrowed funds or
securities premium or any other sources
or kind of funds) by the Company to or
in any person(s) or entity(ies), including
foreign entities ('the intermediaries'), with
the understanding, whether recorded in
writing or otherwise, that the intermediary
shall, whether, directly or indirectly lend
or invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Company ('the
Ultimate Beneficiaries') or provide any
guarantee, security or the like on behalf
the Ultimate Beneficiaries;
b. The management has represented that,
to the best of its knowledge and belief, as
disclosed in note 48(vi) to the standalone
financial statements, no funds have
been received by the Company from any
person(s) or entity(ies), including foreign
entities ('the Funding Parties'), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, whether directly or indirectly, lend
or invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding Party
('Ultimate Beneficiaries') or provide any
guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
c. Based on such audit procedures
performed as considered reasonable
and appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
management representations under
sub-clauses (a) and (b) above contain any
material misstatement.
v. the Company has not declared or paid
any dividend during the year ended 31
March 2026; and
vi. As stated in Note 46 of the accompanying
standalone financial statements and based on
our examination which included test checks,
except for instances mentioned below, the
Company, in respect of the current financial
year, has used accounting software for
maintaining its books of account which have a
feature of recording audit trail (edit log) facility
and the same have been operated throughout
the year for all relevant transactions recorded
in the software. Further, during the course of
our audit we did not come across any instance
of audit trail feature being tampered with,
other than the consequential impact of the
exceptions given below. Furthermore, except
for instances mentioned below, the audit trail
has been preserved by the Company as per the
statutory requirements for record retention.
The audit trail (edit log) feature was not
enabled at the database level for certain
users in the accounting software used for
maintaining books of account, individual loan
origination records and loan management
records, for logging direct data changes.
Further, the audit trail (edit log) feature was
not enabled in entirety at the database level in
the accounting software used for maintaining
group loan origination records.
For Walker Chandiok & Co LLP For Varma & Varma
Chartered Accountants Chartered Accountants
Firm Registration No: 001076N/N500013 Firm Registration No: 004532S
Manish Gujral Mithun Lakshmana Pai
Partner Partner
Membership No. 105117 Membership No. 219813
UDIN: 26105117VFMBBA2866 UDIN: 26219813UFVIGK9845
Place: Bengaluru Place: Bengaluru
Date: 08 May 2026 Date: 08 May 2026
|