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.) (iv) Reconciliation of stock options: ESOP 2017 ESOP 2018 (grant 2018) ESOP 2018 (grant 2019) ESOP 2018 (grant 2020) Outstanding as at 01 April 2019 175,280 543,264 - - Stock option issued during the year - - 769,528 - Exercised and vested - - - - Forfeited/ lapsed - 35,250 - Outstanding as at 31 March 2020 175,280 543,264 734,278 - Stock option issued during the year - - - 842,858 Exercised and vested - - - - Forfeited/ lapsed - - - - Outstanding as at 31 March 2021 175,280 543,264 734,278 842,858 Particulars ESOP 2017 ESOP 2018 (grant 2018) ESOP 2018 (grant 2019) ESOP 2018 (grant 2020) (A) Date of grant of options 29-Aug-17 16-May-18 16-May-19 04-Aug-20 (B) Fair market value of option on the date of grant 14.71 37.61 49.53 56.83 (C) Exercise price 84.70 130.00 162.80 170.00 (D) Expected volatility (%) 35.95 34.25 39.02 47.60 (E) Expected forfeiture percentage on each vesting date - - - (F) Expected option life (weighted average) 1.04 2.50 2.50 2.57 (G) Expected dividends yield - - - - (H) Risk free interest rate (%) 6.07% 7.51% 6.75% 4.39% Note: The expected volatility was determined based on historical volatility data of the other comparable Company’s shares listed on the Stock Exchange. (iii) The weighted average exercise price and remaining contractual life of the ESOP Scheme are as follows: (v) The Company has recognized share based payment expense of INR 334.54 Lakhs (31 March 2020: INR 265.45 Lakhs) during the year as proportionate cost. (vii) The fair value of the options granted is determined on the date of the grant using the “Black-Scholes option pricing model” with the following assumptions, as certified by an independent valuer. (vi) Following employees have received a grant in the reporting year of option amounting to 5% or more of total option granted: Employee stock option scheme (‘ESOP Scheme’) As at 31 March 2021 As at 31 March 2020 ESOP 2017 Exercise price 84.70 84.70 Weighted average remaining contractual life (in years) - - ESOP 2018 (grant 2018) Exercise price 130.00 130.00 Weighted average remaining contractual life (in years) 0.12 1.12 ESOP 2018 (grant 2019) Exercise price 162.80 162.80 Weighted average remaining contractual life (in years) 1.12 2.12 ESOP 2018 (grant 2020) Exercise price 170.00 - Weighted average remaining contractual life (in years) 2.35 - Name of Employee Designation Number of Options granted Mr. Milind R Nare Chief Financial Officer 57,024 Mr. Anirudh Singh G Thakur Company Secretary 42,300 Mr. Manoj Kumar N Nambiar Managing Director 137,500 Financial Note: There are no identified employees who were granted options, during any particular year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant. 157