Arohan Financial Services Limited | Annual Report 2022-23

| 122 Annual Report | 2022-2023 Financial Arohan Financial Services Limited Statement of Cash Flow for the year ended 31 March 2023 (All amounts in ` lakhs unless otherwise stated) Year ended 31 March 2023 Year ended 31 March 2022 (A) Cash flows from operating activities Profit before tax 8,995.36 8,294.10 Adjustments to reconcile profit before tax to net cash flows: Depreciation and amortization 476.24 586.07 Interest on lease liability (net) 45.78 53.09 Impairment on financial instruments 19,117.55 13,566.80 Impairment on trade receivables 147.44 - Net gain on derecognition of financial instruments (3,586.49) - Interest income on unwinding of assigned portfolio (294.45) (352.92) Adjustment of loan to ESOP trust - (24.31) Expense on employee stock option scheme 282.76 454.69 Effective interest rate adjustment for financial instruments (*) 1,475.82 (2,310.11) Unwinding impact on security deposit 0.21 0.34 Operating profit before working capital changes 26,660.22 20,267.75 Working capital adjustments (Increase)/ decrease in assets Loans (1,26,319.57) 8,003.80 Trade receivables (1,484.49) (86.92) Other financial assets 1,675.25 862.65 Other non-financial assets 173.19 614.67 Increase/ (decrease) in liabilities Others financial liabilities 6,138.36 (2,911.19) Provisions 17.60 87.77 Other non-financial liabilities 178.67 (173.13) Cash (used in)/ generated from operating activities (92,960.77) 26,665.40 Income taxes paid (net of refunds) 642.79 (4,204.80) Net cash (used in)/ generated from operating activities (A) (92,317.98) 22,460.60 (B) Cash flows from investing activities Purchase of property, plant and equipment (301.69) (97.76) Investment in fixed deposits (2,427.71) (16,122.96) Purchase of investments (7,872.00) - Purchase of intangible assets (34.41) (5.96) Purchase of intangible assets under development (46.30) (70.72) Proceeds from sale of property, plant and equipment 0.44 2.63 Net cash used in investing activities (B) (10,681.67) (16,294.77) (C) Cash flows from financing activities Proceeds from issue of equity shares (including premium) 5.65 122.17 Proceeds from Issue of compulsorily convertible preference shares (including premium) 24,829.50 - Share issue expenses (472.47) - Proceeds from debt securities (*) 11,462.43 - Repayment of debt securities (*) (9,940.00) (69,977.67) Proceeds from borrowings (other than debt securities) (*) 6,44,169.00 4,67,025.59 Repayment of borrowings (other than debt securities) (*) (6,05,544.46) (4,45,766.13) Proceeds from subordinated liabilities (*) - 22,234.60 Repayment of subordinated liabilities (*) (1,000.00) - Payment of lease liabilities (216.86) (243.22) Net cash generated/ (used in) financing activities (C) 63,292.79 (26,604.66) Net increase/ (decrease) in cash and cash equivalents (A+B+C) (39,706.86) (20,438.83) Cash and cash equivalents as at the beginning of the year 95,362.92 1,15,801.75 Cash and cash equivalents as at the end of the year 55,656.06 95,362.92 Components of cash and cash equivalents: [Refer Note 4] Cash on hand 36.05 55.57 Balances and deposits with banks 55,620.01 95,307.35 Cash and cash equivalents considered for cash flow 55,656.06 95,362.92 This is the Statement of Cash Flows referred to in our report of even date. For M S K A & Associates For and on behalf of the Board of Directors of Chartered Accountants Arohan Financial Services Limited Firm Registration No. 105047W Tushar Kurani Manoj Kumar N Nambiar Vineet Chandra Rai Partner Managing Director Director Membership No. 118580 DIN: 03172919 DIN: 00606290 Place: Kolkata Place: Kolkata Anirudh Singh G Thakur Milind R Nare Company Secretary Chief Financial Officer Place: Mumbai Place: Kolkata Place: Kolkata Date: 12 May 2023 Date: 12 May 2023 (*) Refer note 19 for reconciliation of liabilities arising from financing activities The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7, “Statement of Cash Flows”.