Arohan Financial Services Limited | Annual Report 2021-22

Financials | 195 Annual Report | 2021-2022 Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March, 2022 (Contd.) (All amounts in ` lakhs unless otherwise stated) Note 41: Financial risk management (Contd.) Particulars Stage 1 Stage 2 Stage 3 Gross carrying amount as at March 31, 2020 4,30,578.26 11,709.19 11,183.84 Assets originated* 2,01,695.99 0.10 11,689.58 Net transfer between stages ** Transfer to stage 1 38.11 (32.59) (5.51) Transfer to stage 2 (48,745.89) 48,752.55 (6.66) Transfer to stage 3 (23,949.07) (9,917.62) 33,866.69 Assets derecognised or collected (excluding write offs) (1,99,360.03) 719.35 (1,566.25) Write - offs (including death cases) - - (3,065.36) Gross carrying amount as at March 31, 2021 3,60,257.37 51,230.98 52,096.33 Assets originated* 2,75,892.29 45,293.57 5,991.82 Net transfer between stages Transfer to stage 1 172.40 (142.46) (29.94) Transfer to stage 2 (2,238.99) 2,279.60 (40.61) Transfer to stage 3 (5,029.53) (1,765.99) 6,795.52 Assets derecognised or collected (excluding write offs) (2,81,240.31) (48,572.80) (6,709.04) Write - offs (including death cases) - - (39,403.39) Gross carrying amount as at March 31, 2022 3,47,813.23 48,322.90 18,700.69 Reconciliation of loss allowance Stage 1 Stage 2 Stage 3 Loss allowance on March 31, 2020 2,749.79 4,818.56 11,183.84 Increase of provision due to assets originated during the year 8,068.50 0.04 7,742.51 Net transfer between stages ** Transfer to stage 1 1.77 (13.02) (3.65) Transfer to stage 2 (1,992.55) 20,287.95 (4.40) Transfer to stage 3 (1,045.49) (3,949.58) 22,455.70 Assets derecognised or collected (10,371.78) (588.87) (1,836.45) Impact of ECL on exposures transferred between stages during the year 17,149.99 758.37 (1,351.72) Write - offs (including death cases) - - (3,065.36) Loss allowance on March 31, 2021 14,560.23 21,313.45 35,120.47 Increase of provision due to assets originated during the year 8,610.37 17,979.81 4,053.56 Net transfer between stages Transfer to stage 1 7.33 (64.51) (20.25) Transfer to stage 2 (73.39) 934.05 (36.23) Transfer to stage 3 (186.21) (1,371.65) 5,024.39 Assets derecognised or collected (8,808.35) (20,348.85) (4,808.17) Impact of ECL on exposures transferred between stages during the year (3,087.83) 1,168.37 13,253.69 Write - offs (including death cases) - - (39,403.39) Loss allowance on March 31, 2022 (#) 11,022.15 19,610.67 13,184.07 * Assets originated during the year has been presented on net basis i.e. the collections towards fresh loans has been netted off. ** Includes capitalisation of interest on account of moratorium. Reconciliation of loss allowance from beginning to end of reporting period: ** Includes interest capitalised on account of moratorium (#) If the probability of default increases or decreases by 10 basis point the expected credit loss will increase or decrease by ` 249.94 lakhs respectively. Similarly, if the loss given default increases or decreases by 100 basis point the expected credit loss will increase or decrease by ` 465.7 lakhs respectively.