Arohan Annual Report FY 20-21

1. Audit Committee The primary objective of the Audit Committee is to monitor and provide an effective supervision of the Management’s financial reporting process, to ensure accurate and timely disclosures, with the highest levels of transparency, integrity and quality of financial reporting and the committee assists the Board in dissemination of financial information. The terms of the reference of the Audit Committee covers all matters specified in Section 177 of the Companies Act, 2013. The terms of the reference broadly include review of internal audit reports and action taken reports, assessment of the efficacy of the internal control systems/financial reporting systems and reviewing of the adequacy of the financial policies and practices followed by the Company. The Audit Committee also looks after the compliance with the legal and statutory requirements, the quarterly and annual financial statements and related party transactions and report its finding to the Board. The Committee also recommends the appointment of statutory auditor to the Board. The Committee also looks into those matters specifically referred to it by the Board. Composition: • Mr. Rajat Mohan Nag, Chairperson • Mr. Sumantra Banerjee, Member • Ms. Matangi Gowrishankar, Member • Mr. Piyush Goenka, Member • Mr. Anurag Agrawal, Member As on March 31, 2021 the Committee comprised of three (3) Independent Directors, one (1) Nominee Director and one (1) Promoter Director, all of whom are financially literate and have relevant finance exposure. The Managing Director, the Chief Financial Officer, the VP & Head- Internal Audit, the EVP- Business, the SVP & Head- Risk & Credit, the SVP- Central Operations, the VP- MSME Lending Head of HR, ADMIN & CSR and the AVP- Heads of Accounts are the invitees to the meetings of the Committee. The other directors are invited to attend the Audit Committee meetings as when required. The Company Secretary acts as the secretary to the Committee. The Audit Committee met Six (6) times during the year on June 25, 2020, Committee of the Board- Composition as on March 31, 2021. Board of Arohan confirms that the independent directors fulfill the conditions specified in the regulations and are independent of the management. August 11, 2020, November 10, 2020, February 04, 2021, February 10, 2021 and March 03, 2021. The time gap between any two meetings was less than four (4) months. Attendance of Directors: Name of the Member Position No. of Meetings Held No. of Meetings Attended Mr. Rajat Mohan Nag Independent Director 6 6 Mr. Sumantra Banerjee Independent Director 6 6 Ms. Matangi Gowrishankar Independent Director 6 6 Mr. Piyush Goenka Nominee Director 6 6 Mr. Anurag Agrawal Nominee Director 6 6 The Chief Financial Officer, who is responsible for the finance function, the Head of Internal Audit and the representative of the Statutory Auditors, are permanently invited to attend meetings of the Audit Committee. The Company Secretary acts as the Secretary to the Audit Committee. 2. Risk Management Committee Periodic assessment to identify the risk areas is very necessary for a rapid growth of a company and this is effectively carried out by the committee and management is briefed on the risks in advance by the committee to enable the Company to control risk through a properly defined plan. The risks are taken into account while preparing the annual business plan for the Company. The Committee also assists the Board in fulfilling its corporate governance oversight responsibilities with regard to the identification, evaluation and mitigation of strategic, operational, and external environment risks. The Board is also periodically informed of the business risk and actions taken to manage them. The company has put in place a risk management policy which provides an overview of the principles of the risk management of the company. Board of Director’s Report 105