Arohan Annual Report FY 20-21

As at 31 March 2021 As at 31 March 2020 (A) Cash flows from operating activities Profit /(loss) before tax (21,779.33) 16,758.54 Adjustments to reconcile profit before tax to net cash flows: Depreciation, amortization and impairment 668.52 669.61 Interest on lease liability 71.35 74.26 Impairment on financial instruments 50,386.29 15,587.90 Gain on sale of loan portfolio (including unwinding) through assignment/business transfer (3,094.19) (4,073.68) Expense on employee stock option scheme 334.54 265.45 Effective interest rate adjustment for financial instruments 2,618.82 1,399.50 Unwinding impact on security deposit 0.06 0.44 Operating profit before working capital changes 29,206.06 30,682.02 Changes in working capital (Increase) in loans (9,647.58) (97,096.08) Decrease in trade receivables 386.59 34.32 (Increase) in other bank balances (4,083.83) (6,346.83) Decrease in other financial assets 4,203.40 5,574.87 (Increase)/ decrease in other non-financial assets (525.40) 50.69 (Decrease) in others financial liabilities (2,110.84) (1,552.53) Increase in provisions 199.42 323.15 Increase/ (decrease) in other non-financial liabilities 236.68 (246.82) Cash generated from/ (used in) operating activities 17,864.50 (68,577.21) Income taxes paid (net of refunds) (6,491.93) (7,563.27) Net cash generated from/ (used in) operating activities (A) 11,372.57 (76,140.48) (B) Cash flows from investing activities Purchase of property, plant and equipment (136.30) (320.08) Purchase of intangible assets and intangible assets under development (109.55) (154.43) Proceeds from sale of property, plant and equipment 34.47 - Proceeds from sale of intangible assets 9.73 - Net cash used in investing activities (B) (201.65) (474.51) (C) Cash flows from financing activities (*) Proceeds from issue of equity shares including premium 16,813.29 13,000.00 Share issue expenses (358.73) (228.58) Proceeds from debt securities 97,197.11 - Repayment of debt securities - (6,100.00) Proceeds from borrowings other than debt securities 416,449.73 318,642.65 Repayment of borrowings other than debt securities (494,057.02) (199,398.11) Proceeds from subordinated liabilities - 2,418.25 Payment of lease liabilities (271.86) (261.48) Net cash generated from financing activities (C) 35,772.52 128,072.73 Net increase in cash and cash equivalents (A+B+C) 46,943.44 51,457.74 Cash and cash equivalents as at the beginning of the year 68,858.31 17,400.57 Cash and cash equivalents as at the end of the year 115,801.75 68,858.31 Components of cash and cash equivalents: Cash on hand 171.55 365.29 Balances and deposits with banks 115,630.20 68,493.02 Cash and cash equivalents considered for cash flow 115,801.75 68,858.31 ( *) Refer Note 19 for reconciliation of liabilities arising from financing activities The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7, “Statement of Cash Flows” Arohan Financial Services Limited Cash Flow Statement for the year ended 31 March 2021 (All amounts in INR lakhs unless otherwise stated) This is the Statement of Cash Flows referred to in our report of even date. For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No. 001076N/N500013 Manish Gujral Partner Membership No. 105117 Manoj Kumar Nambiar Managing Director (DIN: 03172919) Place: Mumbai Milind R Nare Chief Financial Officer Place : Mumbai Anurag Agrawal Director (DIN: 02385780) Place : Mumbai Anirudh Singh G Thakur Company Secretary Place: Mumbai Date: 4 June 2021 For and on behalf of Board of Directors of Arohan Financial Services Limited Place: Mumbai Date: 4 June 2021 Annual Report | 2020-2021 134