Arohan Annual Report FY 20-21

Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2021 (Contd.) Nature of Security: i. All term loans from banks and financial institutions are secured by way of first charge ranking pari-passu over the designated current assets, both present & future, including the designated book debts, loan instalments, receivables and underlying assets arising out of finance of the Company. ii. Cash credit facilities and working capital demand loans from banks are secured by way of first charge ranking pari-passu over the designated current assets, both present & future, including the designated book debts, loan instalments, receivables and underlying assets arising out of finance of the Company. iii. Liabilities against securitisation represents amounts received in respect of securitisation transactions (net of repayments & investment therein) as these transactions do not meet the de-recognition criteria specified under Ind AS 109. These are secured by way of hypothecation of designated assets on finance receivables. Note 18: Subordinated liabilities As at 31 March 2021 As at 31 March 2020 (Measured at amortised cost) Non-convertible debentures (unsecured) 13,447.83 13,416.64 Term loans from banks 7,560.48 7,553.66 Term loans from financial institution - - Total 21,008.31 20,970.29 Subordinated liabilities in India 21,008.31 20,970.29 Subordinated liabilities outside India - - Total 21,008.31 20,970.29 (#) Terms of repayment given in the repayment schedule Particulars As at 31 March 2021 As at 31 March 2020 (a) Term loans from banks (unsecured) Term loan from banks 7,560.48 7,553.66 Subtotal 7,560.48 7,553.65 (b) Non-convertible debentures (unsecured) 14.25% IFMR Capital Finance Private Limited (Face Value INR10 lakhs) 100 debentures maturing in September 2022 1,068.70 1,065.29 13.50% Northern Arc Capital Limited (Face Value INR10 lakhs) 650 debentures; maturing in April 2025 6,473.76 6,464.21 12.85% Karvy Capital Limited (Face Value INR10 each) 2,50,00,000 debentures, maturing in October 2026 2,434.97 2,423.30 13.50% Northern Arc Capital Limited (Face Value INR10 each) 3,50,00,000 debentures; maturing in September 2025 3,470.40 3,463.83 Subtotal 13,447.83 13,416.63 Total 21,008.31 20,970.29 Details of subordinated liabilities Note 19: Reconciliation of liabilities arising from financing activities The changes in the Company’s liabilities arising from financing activities can be classified as follows: Particulars Debt securities Borrowings (other than debt) Subordinated liabilities Total 31 March 2019 6,245.89 277,587.83 18,515.22 302,348.94 Cash flows: Proceeds - 318,642.65 2,418.25 321,060.90 Repayment (6,100.00) (199,398.11) - (205,498.11) Non cash: Amortisation of upfront fees (145.89) 1,508.57 36.82 1,399.50 31 March 2020 - 398,340.94 20,970.29 419,311.23 Cash flows: Proceeds 97,197.11 416,449.73 - 513,646.84 Repayment - (494,057.02) - (494,057.02) Non cash: Amortisation of upfront fees 3,538.81 (958.01) 38.02 2,618.82 31 March 2021 100,735.92 319,775.64 21,008.31 441,519.87 Annual Report | 2020-2021 152