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 33: Impairment on financial instruments (continued) Year ended 31 March 2020 On financial instruments measured at fair value through OCI On financial instruments measured at amortised cost Total Impairment on loans 4,811.81 8,516.42 13,328.23 Bad debt written off (net of recoveries)* - 2,259.67 2,259.67 Total 4,811.81 10,776.09 15,587.90 (*) INR 936.14 lakhs (31 March 2020: INR 524.44 lakhs) of recoveries netted off with bad debt written off. Note 34: Employee benefits expenses Year ended 31 March 2021 Year ended 31 March 2020 Salaries and wages 16,342.75 13,702.79 Contribution to provident and other funds 1,549.19 1,159.92 Share based payments to employees 334.54 265.45 Staff welfare expenses 671.13 572.67 Total 18,897.61 15,700.83 Note 35: Depreciation, amortisation and impairment Year ended 31 March 2021 Year ended 31 March 2020 Depreciation on property, plant and equipment 248.63 272.04 Depreciation on right of use assets 214.46 211.10 Amortisation of intangible assets 205.43 186.47 Total 668.52 669.61 Note 36: Other expenses Year ended 31 March 2021 Year ended 31 March 2020 Rent [Refer note 59] 1,095.29 1,033.07 Repairs and maintenance 685.43 506.44 Insurance 345.77 261.26 Power and fuel 122.32 89.30 Rates and taxes 25.08 113.37 Office expenses 95.63 202.59 Membership and subscription 68.38 63.99 Office maintenance 200.03 111.19 Printing and stationery 276.37 232.36 Legal and professional expenses 1,212.32 1,614.52 Director's commission [Refer note 45] - 74.40 Recruitment and induction expenses 53.95 161.42 Communication expenses 96.99 87.68 Travelling and conveyance 1,681.40 1,672.80 Payment to auditors [Refer note (a) below] 48.11 44.93 Corporate social responsibility expenses [Refer note 57] 244.13 159.76 Miscellaneous expenses 144.56 84.56 Total 6,395.76 6,513.64 Note (a) Payments to auditors (excluding applicable taxes) Statutory audit including limited reviews 38.50 35.00 Tax audit 1.26 1.26 In other capacity Other services (*) 7.46 4.27 Reimbursement of expenses 0.89 4.40 48.11 44.93 (*) During the year ended 31 March 2021, an amount of INR 81.43 lakhs has been paid as professional services for draft red hearing prospectus (DRHP) filing which has been presented under other non financial assets. Financial 159