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 As at 31 March 2021 As at 31 March 2020 ASSETS Within 12 months After 12 months Within 12 months After 12 months Financial assets Cash and cash equivalents 115,801.75 - 68,858.31 - Other bank balance 11,928.19 7,321.23 6,515.24 8,650.35 Trade receivables 113.67 - 500.26 - Loans 249,674.21 142,916.32 219,922.80 214,796.30 Other financial assets 932.78 118.68 1,987.97 166.40 378,450.60 150,356.23 297,784.58 223,613.05 Non-financial assets Current tax assets (Net) 635.96 - 410.66 - Deferred tax assets (Net) - 15,896.74 - 3,527.65 Property, Plant and Equipment 176.97 325.31 230.40 418.67 Intangible assets under development - 52.55 - 4.82 Other Intangible assets 199.58 185.88 196.14 342.66 Right to use asset 178.61 328.15 201.16 539.13 Other non-financial assets 1,328.66 3.44 732.93 80.12 2,519.78 16,792.07 1,771.29 4,913.05 Total assets 380,970.38 167,148.30 299,555.87 228,526.10 LIABILITIES AND EQUITY Liabilities Financial liabilities Payables (I) Trade payables (i) total outstanding dues of micro enterprises and small enterprises - - - - (ii) total outstanding dues of creditors other than micro enterprises and small enterprises - - - - (II) Other payables (i) total outstanding dues of micro enterprises and small enterprises - - - - (ii) total outstanding dues of creditors other than micro enterprises and small enterprises - - - - Debt securities 73,230.39 27,505.53 - - Borrowings (other than debt securities) 203,924.64 115,851.00 227,678.02 170,662.92 Subordinated liabilities 128.10 20,880.21 129.73 20,840.56 Others financial liabilities 6,319.86 381.53 8,441.61 590.19 283,602.99 164,618.27 236,249.36 192,093.67 Non-financial liabilities Current tax liabilities (Net) Current tax liabilities (Net) - - 44.25 - Provisions 392.09 1,396.42 334.82 1,088.13 Other non-financial liabilities 1,943.94 301.44 1,583.99 424.72 2,336.03 1,697.86 1,963.06 1,512.85 TOTAL LIABILITIES 285,939.02 166,316.13 238,212.41 193,606.52 Net Equity 95,031.36 832.17 61,343.46 34,919.58 Note 44: Transferred financial assets In the course of its micro finance activity, the Company makes transfers of financial assets, where legal rights to the cash flows from the asset are passed to the counterparty and where the Company retains the rights to the cash flows but assumes a responsibility to transfer them to the counterparty. The Company has securitised its loan assets to an unrelated and unconsolidated entities. As per the terms of the agreements, the Company is exposed to first loss default guarantee of 20% of the amount securitised and therefore continues to be exposed to significant risk and rewards relating to the underlying mortgage receivables. Hence, these loan assets are not derecognised and proceeds received are presented as borrowings. The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred financial assets do not qualify for derecognition, together with the associated liabilities: Securitisation Year ended 31 March 2021 Year ended 31 March 2020 Gross carrying amount of securitised assets - 676.04 Gross carrying amount of associated liabilities - 666.61 Carrying value and fair value of securitised assets - 676.04 Carrying value and fair value of associated liabilities - 666.61 Net position - 9.43 Financial 171