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.) (i) Funding Concentration based on significant counterparty on borrowings As at 31 March 2021 As at 31 March 2020 Number of significant counterparties 24 25 Amount of borrowed funds from significant counterparties 407,542.07 377,808.33 Percentage of total deposits Not applicable Not applicable Percentage of total liabilities 90.11% 87.50% Notes: i. A “Significant counterparty” is defined as a single counterparty or group of connected or affiliated counterparties accounting in aggregate for more than 1% of the NBFC-NDSI’s, NBFC-Ds total liabilities and 10% for other non-deposit taking NBFCs. ii. Total Liabilities has been computed as Total Assets less Equity share capital less Reserve & Surplus and computed basis extant regulatory ALM guidelines. (iii) Top 10 borrowings As at 31 March 2021 As at 31 March 2020 Amount of borrowed funds from top ten significant counterparties (*) 288,076.57 261,908.02 % of total borrowings (#) 65.84% 62.58% Notes: (*) Accrued interest on borrowings have not been considered in above calculation. (#) Total borrowing has been computed as gross total debt basis extant regulatory ALM guidelines. (iv) Funding Concentration based on significant instrument / product Name of the instrument/product As at 31 March 2021 As at 31 March 2020 Amount (**) % of total liabilities Amount (**) % of total liabilities Debt securities 97,500.00 22.00% - - Borrowings (other than debt securities) 319,025.79 70.00% 397,523.85 92.07% Subordinated liabilities 21,000.00 5.00% 21,000.00 4.86% Notes: i. (A “significant instrument/product” is defined as a single instrument/product of group of similar instruments/products which in aggregate amount to more than 1% of the NBFC-NDSI’s, NBFC-Ds total liabilities and 10% for other non-deposit taking NBFCs. ii. Total liabilities has been computed as total assets less equity share capital less reserve & surplus and computed basis extant regulatory ALM guidelines. (**) Figures are based on gross borrowing outstanding and does not includes accrued interest and other Ind AS adjustments. (V) Stock ratios in percentage As at 31 March 2021 As at 31 March 2020 1. Commercial papers as a % of total liabilities Not Applicable Not Applicable 2. Commercial papers as a % of total assets Not Applicable Not Applicable 3. Commercial papers as a % of public fund Not Applicable Not Applicable 4. Non-convertible debentures (original maturity of less than one year) as a % of total liabilities 0% 0% 5. Non-convertible debentures (original maturity of less than one year) as a % of total assets 0% 0% 6. Non-convertible debentures (original maturity of less than one year) as a % of public fund 0% 0% 7. Other short-term liabilities as a % of total liabilities 63.23% 55.16% 8. Other short-term liabilities as a % of total assets 52.17% 45.10% 9. Other short-term liabilities as a % of pubic fund 64.76% 58.80% (vi) Institutional set-up for Liquidity Risk Management The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board approves the governance structure, policies, strategy and the risk limits for themanagement of liquidity risk. The Board of Directors approves the constitution of the Risk Management Committee (RMC) for the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company. The meetings of RMC are held at quarterly interval. Further, the Board of Directors also approves constitution of Asset Liability Committee (ALCO), which functions as the strategic decision-making body for the asset-liability management of the Company from risk-return perspective and within the risk appetite and guard-rails approved by the Board. The main objective of ALCO is to assist the Board and RMC in effective discharge of the responsibilities of asset liability management, market risk management, liquidity and interest rate risk management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds. ALCO meetings are held once in a month or more frequently as warranted from time to time. The minutes of ALCO meetings are placed before the RMC and the Board of Directors in its next meeting for its perusal/ approval/ ratification. Note 54: Disclosures in terms of RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20 dated 04 November 2019 have been given below: (ii) Top 20 large deposits (amount in INR lakhs and % of total deposits) - Not applicable Annual Report | 2020-2021 184