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 (All amounts in INR lakhs unless otherwise stated) Note 27: Interest Income Year ended 31 March 2021 On financial assets measured at fair value through OCI On financial assets measured at amortised cost Total Interest on loans 698.74 91,377.79 92,076.53 Interest on deposits with banks [refer (a) below] - 954.81 954.81 Interest income on unwinding of assigned portfolio - 1,529.19 1,529.19 Other interest Income - 21.89 21.89 Total 698.74 93,883.68 94,582.42 Note 33: Impairment on financial instruments Year ended 31 March 2021 On financial instruments measured at fair value through OCI On financial instruments measured at amortised cost Total Impairment on loans (1.82) 48,168.96 48,167.14 Bad debt written off (net of recoveries)* - 2,219.15 2,219.15 Total (1.82) 50,388.11 50,386.29 Note 27: Interest Income (continued) Year ended 31 March 2020 On financial assets measured at fair value through OCI On financial assets measured at amortised cost Total Interest on loans 62,163.98 22,562.35 84,726.33 Interest on deposits with banks [refer (a) below] - 655.03 655.03 Interest income on unwinding of assigned portfolio - 748.87 748.87 Other interest Income - 16.02 16.02 Total 62,163.98 23,982.27 86,146.25 (a) Represents interest on margin money deposits placed to avail term loan from banks and financial institutions. Note 28: Fees and commission Income Year ended 31 March 2021 Year ended 31 March 2020 Income from cross sale business 2,308.87 1,344.91 Income from partnership business 8.51 173.36 Income from insurance business 7.16 1,006.94 Total 2,324.54 2,525.21 Note 29: Net gain on derecognition of financial instruments Year ended 31 March 2021 Year ended 31 March 2020 Gain on sale of loan portfolio through assignment/ transfer (*) 1,565.00 3,324.81 Total 1,565.00 3,324.81 Note 30: Other operating income Year ended 31 March 2021 Year ended 31 March 2020 Others 147.25 183.72 Total 147.25 183.72 Note 31: Other income Year ended 31 March 2021 Year ended 31 March 2020 Interest income on deposits with banks 2,736.06 1,234.18 Miscellaneous income 12.25 36.43 Total 2,748.31 1,270.61 Note 32: Finance costs Year ended 31 March 2021 Year ended 31 March 2020 (Measured at amortised cost) Interest on debt securities 5,493.42 332.49 Interest on borrowings (other than debt securities) 37,550.22 33,965.69 Interest on subordinated liabilities 2,872.86 2,693.57 Other interest expenses 882.17 1,228.33 Total 46,798.67 38,220.08 (*) Includes ₹ 1,565.00 lakhs (31 March 2020: ₹ Nil) being gain on transfer of MSME business along with other related assets to Ashv Financials Limited through slump sale. Annual Report | 2020-2021 158