Arohan Financial Services Limited | Annual Report 2021-22

| 139 Annual Report | 2021-2022 Arohan Financial Services Limited Annexure A to the Independent Auditor’s Report of even date on the financial statements of Arohan Financial Services Limited for the year ended March 31, 2022. [Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ in the Independent Auditors’ Report] i. a) A. The company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment. B. The Company has maintained proper records showing full particulars of intangible assets. b) All the Property, Plant and Equipment are physically verified by the management in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. c) According to the information and explanations given to us, there are no immovable properties, and accordingly, the requirements under paragraph 3(i)(c) of the Order are not applicable to the Company. d) According to the information and explanations given to us, the Company has not revalued its property, plant and Equipment (including Right of Use assets) and its intangible assets. Accordingly, the requirements under paragraph 3(i)(d) of the Order are not applicable to the Company. e) According to the information and explanations given to us, no proceeding has been initiated or pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder. Accordingly, the provisions stated in paragraph 3(i)(e) of the Order are not applicable to the Company. ii. a) The Company is involved in the business of rendering services. Accordingly, the provisions stated in paragraph 3(ii) (a) of the Order are not applicable to the Company. b) The Company has been sanctioned working capital limits in excess of Rs. 5 crores in aggregate fromBanks/financial institutions on the basis of security of current assets. Quarterly returns are filed with such Banks/ financial institutions are in agreement with the books of account. iii. a) The Company involved in the business of giving loans. Accordingly, the provision stated in paragraph 3(iii) (a) of the Order are not applicable to the Company. b) Based on our examination and the information and explanations given to us, in respect of the aforesaid loans, investments/ guarantees/ securities/ loans/ advances in nature of the loan, in our opinion, the terms and conditions under which such loans were granted/ investments were made/ guarantees provided/ security provided are not prejudicial to the Company’s interest. c) In respect of the [aforesaid] loans/ advances in nature of loan, the schedule of repayment of principal and payment of interest has been stipulated by the Company. Considering that the Company is a non-banking financial company engaged in the business of micro finance lending [to small individual borrowers], the borrower- wise details of the amount, due date for payment and extent of delay (that has been suggested in the Guidance Note on CARO 2020 issued by the Institute of Chartered Accountants of India for reporting under this clause) have not been reported Auditor’s Report