Arohan Financial Services Limited | Annual Report 2022-23

89 | Annual Report | 2022-2023 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’ comprising of employees, regulators, customers, investors, vendors and society at 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 Company’s corporate governance practices to ensure that the Company gain and retain the trust of its stakeholders at all times. The Company's activities are carried out in accordance with good corporate practices and the Company 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 amanner 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 alsomandated under the Companies Act, 2013 ( “CA 2013” ) and The 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. Corporate Structure – Have a simple and transparent corporate structure driven solely by business needs. Transparency – Ensure transparency and maintain a high level of disclosure. In spirit and letter – Satisfy both the spirit of the law and the letter of the law. CORPORATE GOVERNANCE FRAMEWORK Stakeholder Relationship – Communicate externally and truthfully, about how the Company is run internally.