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.) Particulars Stage 1 Stage 2 Stage 3 Gross carrying amount as at 01 April 2019 352,110.23 1,352.34 2,584.95 Assets originated* 386,399.25 - - Net transfer between stages Transfer to stage 1 14.11 (4.58) (9.53) Transfer to stage 2 (11,663.57) 11,664.66 (1.09) Transfer to stage 3 (12,582.68) (193.78) 12,776.46 Assets derecognised or collected (excluding write offs) (283,699.08) (1,109.45) (1,524.92) Write - offs (including death cases) - - (2,642.03) Gross carrying amount as at 31 March 2020 430,578.26 11,709.19 11,183.84 Assets originated* 201,695.99 0.10 11,689.58 Net transfer between stages ** Transfer to stage 1 38.11 (32.59) (5.51) Transfer to stage 2 (48,745.89) 48,752.55 (6.66) Transfer to stage 3 (23,949.07) (9,917.62) 33,866.69 Assets derecognised or collected (excluding write offs) (199,360.03) 719.35 (1,566.25) Write - offs (including death cases) - - (3,065.36) Gross carrying amount as at 31 March 2021 360,257.37 51,230.98 52,096.33 * Assets originated during the year has been presented on net basis i.e. the collections towards fresh loans has been netted off. ** Includes capitalisation of interest on account of moratorium Reconciliation of loss allowance from beginning to end of reporting period: Reconciliation of loss allowance Stage 1 Stage 2 Stage 3 Loss allowance on 01 April 2019 1,452.34 488.59 2,584.95 Increase of provision due to assets originated during the year 2,021.95 - - Net transfer between stages Transfer to stage 1 0.10 (1.54) (9.59) Transfer to stage 2 (74.17) 4,757.49 (1.10) Transfer to stage 3 (75.95) (61.43) 12,808.26 Assets derecognised or collected (1,497.44) (391.94) (1,526.95) Impact of ECL on exposures transferred between stages during the year 922.96 27.39 (29.70) Write - offs (including death cases) - - (2,642.03) Loss allowance on 31 March 2020 2,749.79 4,818.56 11,183.84 Increase of provision due to assets originated during the year 8,068.50 0.04 7,742.51 Net transfer between stages ** Transfer to stage 1 1.77 (13.02) (3.65) Transfer to stage 2 (1,992.55) 20,287.95 (4.40) Transfer to stage 3 (1,045.49) (3,949.58) 22,455.70 Assets derecognised or collected (10,371.78) (588.87) (1,836.45) Impact of ECL on exposures transferred between stages during the year 17,149.99 758.37 (1,351.72) Write - offs (including death cases) - - 3 3,065.36 Loss allowance on 31 March 2021 (#) 14,560.23 21,313.45 35,120.47 ** Includes interest capitalised on account of moratorium (#) If the probability of default increases or decreases by 10 basis point the expected credit loss will increase or decrease by INR241.90 lakhs respectively. Similarly if the loss given default increases or decreases by 100 basis point the expected credit loss will increase or decrease by INR760.17 lakhs respectively. Financial 167