Arohan Financial Services Limited | Annual Report 2021-22

116 | Annual Report | 2021-2022 ANNEXURE - V CORPORATE GOVERNANCE REPORT COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY Corporate Governance refers to the way by which corporation is governed, can be said a unique technique by which companies are directed and managed. Corporate Governance can be stated as carrying the business as per the stakeholders’ desires and for creating a long term sustainable value for our stakeholders’ comprisingof employees, regulators, customers, investors, vendors and societyat large, through the best drawn ethical and legal practices. Arohan Financial Services Limited recognizes its role as a corporate citizen and endeavor to adopt the best practices and the highest standards of Corporate Governance through transparency in business ethics, accountability to its customers, government and others. Integrity and transparency have always been a key to the Companies corporate governance practices to ensure that the company gain and retain the trust of its stakeholders at all times. TheCompany’s activities are carriedout in accordancewith good corporate practices and theCompany is constantly striving to better them and to ensure that the Company evolves and follow not just the stated corporate governance guidelines, but also global best practices. In pursuing its Mission of “empowering the underserved households and small businesses by offering a range of financial services, in a manner sustainable for all stakeholders”, Arohan has been balancing its dual objectives of “social” and “financial” goals, since its inception. In India, Corporate Governance standards for listed companies are also mandated under the Companies Act, 2013 (“CA 2013”) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”). In addition to the above, corporate governance standards for Non-Banking Finance Companies are also prescribed by Reserve Bank of India. The Company endeavors to ensure that highest standards of ethical and responsible conduct are met throughout the organization. Corporate Governance Framework: The driving principle of our corporate governance framework are encapsulated in the following diagram MANAGEMENT AS A TRUSTEE Management is the trustee of the shareholders’ capital. STAKEHOLDER RELATIONSHIP Communicate externally and truthfully, about how the Company is run internally. IN SPIRIT AND LETTER Satisfy both the spirit of the law and the letter of the law. CORPORATE GOVERNANCE FRAMEWORK CORPORATE STRUCTURE Have a simple and transparent corporate structure driven solely by business needs. TRANSPARENCY Ensure transparency and maintain a high level of disclosure.