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.) Note 26: Employee stock option scheme (‘ESOP Scheme’) Arohan ESOP Trust (‘ESOP Trust’) was formed on 19 March 2010 to promote participation of the eligible employees of the Company in the ownership and growth of the Company and to confer on them certain welfare benefits through the implementation of the welfare schemes. Pursuant to the shareholders’ approval in the meeting held on 15 March 2010 and 27 April 2018 (empowering the board to take any further decisions with regard to ESOP schemes), the Board is authorized to issue employee stock options, that are exercisable into not more than 21,75,000 equity shares of the Company to eligible employees and has extended interest free loan to ESOP Trust under the Scheme to pro- vide financial assistance to its employees to purchase equity shares of the Company under such the Scheme. Employee Stock Option Plan, 2021 has been formulated pursuant to the shareholders’ approval in the meeting held on February 08, 2021. Presently, stock options have been granted or shares have been issued under the following scheme: A. ESOP 2017 B. ESOP 2018 (grant 2018) C. ESOP 2018 (grant 2019) D. ESOP 2018 (grant 2020) Particulars ESOP 2017 ESOP 2018 (grant 2018) ESOP 2018 (grant 2019) ESOP 2018 (grant 2020) Date of Grant 29-Aug-17 16-May-18 16-May-19 04-Aug-20 Date of Board approval 19-May-17 27-Apr-18 15-May-19 26-Jun-20 Date of committee meeting where grant of options were approved 19-May-17 27-Apr-18 18-Feb-19 26-Jun-20 Date of shareholders' approval 29-Aug-17 15-May-18 18-Mar-19 03-Aug-20 Number of options granted 229,280 597,264 769,528 842,858 Method of settlement Equity Equity Equity Equity Vesting conditions 1. Continued employment with the Company on relevant date of vesting 2. Board may specify certain performance criteria 1. Continued employment with the Company on relevant date of vesting 2. Board may specify certain performance criteria 1. Continued employment with the Company on relevant date of vesting 2. Board may specify certain performance criteria 1. Continued employment with the Company on relevant date of vesting 2. Board may specify certain performance criteria Vesting period 12 months from date of grant of option 36 months from date of grant of option 36 months from date of grant of option 36 months from date of grant of option Exercise period 2 years from the date of vesting or Initial Public Offer listing by company, whichev- er is later 1 year from the date of vesting or initial Public Offer, whichever is later For KMP: 1 year from the date of vesting or initial Public Offer listing date plus 4 months, whichever is later For Other than KMP: 1 year from the date of vesting or initial Public Offer listing date plus 3 months, whichever is later For KMP: 1 year from the date of vesting or initial Public Offer listing date plus 4 months, whichever is later For Other than KMP: 1 year from the date of vesting or initial Public Offer listing date plus 3 months, whichever is later Particulars ESOP 2017 ESOP 2018 (grant 2018) ESOP 2018 (grant 2019) ESOP 2018 (grant 2020) Number of options granted 2,29,280 5,97,264 7,69,528 8,42,858 Outstanding number of options 1,75,280 5,43,264 7,34,278 8,42,858 (i) Employee stock option schemes: (ii) Details of grant and exercise of such options are as follows: Annual Report | 2020-2021 156