Arohan Financial Services Limited | Annual Report 2021-22

101 Annual Report | 2021-2022 Board of Directors’ Report INTERNAL FINANCIAL CONTROLS The Company has in place adequate and effective internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed. VIGIL MECHANISM The Company has a Whistle-blower Policy which is periodically reviewed, and details of the same are explained in the Corporate Governance Report. The Policy is also available on the Company’s website. PARTICIPATION IN CREDIT BUREAU In order to address the issue of multiple lending or over indebtedness and also to know the credit history of the customer, the Company became the member in all the credit bureaus namely Experian Credit Information Company of India Private Ltd, HighMarkCredit Information Services Pvt. Ltd., Equifax Credit Information Services Pvt. Ltd., and Transunion CIBIL Limited and shares all the customer’s data to them on regular basis. RESOURCES AND LIQUIDITY Your Company being a Systemically Important Non-Deposit Accepting NBFC is subject to the capital adequacy requirements prescribed by the Reserve Bank of India. The Company was required to maintain a minimumCapital to Risk Asset Ratio (CRAR) of 15% as prescribed under the Non-Banking Financial Company-Micro Finance Institutions (Reserve Bank) Directions, 2016 (as amended from time to time) based on total capital to risk weighted assets. Your Company maintained a CRAR ratio higher than the RBI prescribed ratio, which is 34.58% as on March 31, 2022. The Company has an outstanding on secured and unsecured borrowings of INR 4,12,726.14 Lakhs at the end of Financial Year 2021-22. RBI GUIDELINES & SRO Your Company is registered with Reserve Bank of India (“ RBI ”), as a non-deposit accepting NBFC (“ NBFC-ND-SI ”) under Section 45-IA of the RBI Act, 1934. As per Non-Banking Finance Companies RBI Directions, 1998, the Directors hereby report that the Company did not accept any public deposits during the year and did not have any public deposits outstanding at the end of the year. The Company being the member of MFIN, follows the Code of Conduct as prescribed by the SRO. The Company also complies with the standards and rules as prescribed by the above SRO from time to time. CREDIT RATING The Company’s Financial discipline and prudence is reflected in thestrongcredit ratings ascribed by rating agencies as given below: Instrument Rating Agency Rating Outlook Bank Instruments CARE Ratings Limited A- Negative Non- Convertible Debentures CARE Ratings Limited A- Negative Bank Instruments ICRA Limited A- Negative Non- Convertible Debentures ICRA Limited A- Negative PARTICULARS OF EMPLOYEES The ratio of the remuneration of each director to the median employee’s remuneration and other details in terms of Section 197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, have been annexed herewith as Annexure IV to the Directors’ Report.