Arohan Financial Services Limited | Annual Report 2021-22

226 | 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 59: During FY2021, the COVID-19 pandemic resulted in a nation-wide lockdown in April-May 2020 which substantially impacted economic activity. Regulatory measures like moratorium on payment of dues and standstill in asset classification were implemented to mitigate the economic consequences on borrowers. The easing of lockdown measures subsequently led to gradual improvement in economic activity and progress towards normalcy from the second half of FY2021. During FY2022, the second wave of the COVID-19 pandemic in April-May 2021 led to the re-imposition of localised/ regional lock-down measures in various parts of the country. The lock-down measures were lifted gradually, as the second wave subsided from June 2021 onwards. The impact of the outbreak of third wave of COVID-19 has been mild. However, it led to re-imposition of some localised/ regional restrictive measures in the country. While there has been significant progress in vaccination programme and the impact of the third wave of COVID-19 in India has been mild, the impact, including with respect to credit quality and provisions, of the COVID-19 pandemic on the Company’ s result will depend on the trajectory of the pandemic, effectiveness of the vaccinations, the effectiveness of current and future steps taken by the government and central bank to mitigate the economic impact. The Company has recognized provisions as on March 31, 2022 towards its loan assets, based on the information available at this point of time, in accordance with the expected credit loss method. The Company believes that it has considered all the possible impact of the known events arising out of COVID-19 pandemic in the preparation of these Financial Statements. However, the impact assessment of COVID-19 is a continuing process given its nature and duration. The Company will continue to monitor any material changes to future economic condition. Note 60: Additional regulatory information pursuant to Ministry of Company Affairs Notification dated March 24, 2021: A. Title deeds of Immovable Property The Company does not own any immovable property in the form of land and building B. Loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties The Company has not granted any loans to promoters, directors, KMPs and the related parties C. Details of Benami Property held There have been no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. D. Borrowings from banks or financial institutions on the basis of security of current assets The Company has availed borrowings from banks or financial institutions on the basis of security of current assets and the returns or statements of current assets filed by the Company with banks or financial institutions as at March 31, 2022, are in agreement with the books of accounts. E. Wilful Defaulter The Company has not been declared a wilful defaulter by any bank or financial institution or other lender. F. Relationship with Struck off Companies The Company has not entered into any transactions with the companies struck off under section 248 of the Act or section 560 of the Companies Act, 1956.