Arohan Annual Report FY 20-21

viii) Additional Disclosures A) Provisions and Contingencies Break up of ‘Provisions and Contingencies’ shown under the head Expenditure in Statement of Profit and Loss Year ended 31 March 2021 Year ended 31 March 2020 Provision towards standard assets 28,207.30 5,558.90 Provision towards non performing assets 19,959.84 7,769.33 Provision made towards Income tax (including for earlier year and deferred tax) (5,792.82) 4,078.49 Other provisions and contingencies (employee benefits) 365.56 899.26 (*) Provision for doubtful debt of INR 98.03 lakhs (31 March 2020: INR 38.81 lakhs) included in other expenses (refer note 35) (**) Provision of INR 3,976.78 lakhs (31 March 2020: INR 829.56 lakhs) towards accrued interest on non performing assets charged in the statement of profit and Loss are netted off with interest income on loan. B) Draw Down from Reserves There have been no instances of draw down from reserves by the Company during the current and previous year. C) Concentration of Advances, Exposures and NPAs Year ended 31 March 2021 Year ended 31 March 2020 a) Concentration of Advances Total Advances to twenty largest borrowers 15,277.80 7,741.67 Percentage of Advances to twenty largest borrowers to total Advances 3.26% 1.70% b) Concentration of Exposures Year ended 31 March 2021 Year ended 31 March 2020 Total exposure to twenty largest borrowers/ customers 16,977.80 7,741.67 Percentage of exposures to twenty largest borrowers / customers to total Exposure 3.62% 1.70% c) Concentration of NPAs Total exposure to top four NPA accounts 227.21 186.42 D) Sector-wise NPAs Percentage of NPAs to total advances in that sector Agriculture & allied activities 10.25% MSME Nil Corporate borrowers (*) Nil Services 45.75% Unsecured personal loans 20.76% Auto loans Nil Other personal loans Nil (*) Provision for doubtful debt of INR 98.03 lakhs (31 March 2020: INR 38.81 lakhs) included in other expenses (refer note 35) E) Movement of NPAs Year ended 31 March 2021 Year ended 31 March 2020 i) Net NPAs to Net Advances (%) 3.96% 0.00% ii) Movement of NPAs (Gross) a) Opening Balance 11,183.84 2,584.95 b) Additions during the year 45,556.27 12,808.26 c) Reductions during the year (4,643.78) (4,209.37) d) Closing balance 52,096.33 11,183.84 iii) Movement of Net NPAs a) Opening Balance - - b) Additions during the year 15,358.06 - c) Reductions during the year 1,617.80 - d) Closing balance 16,975.86 - iv) Movement of provisions for NPAs (excluding provisions on standard assets) a) Opening Balance 11,183.84 2,584.95 b) Provisions made during the year 30,198.21 12,808.26 c) Write-off/write-back of excess provisions (6,261.58) (4,209.37) d) Closing balance 35,120.47 11,183.84 F) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad) The Company did not have any overseas assets during the current and previous year. G) Off-balance sheet SPVs sponsored Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2021 (Contd.) Annual Report | 2020-2021 176