Arohan Financial Services Limited | Annual Report 2022-23

| 168 Annual Report | 2022-2023 Financial Note 41: Financial risk management (Contd.) Particulars Stage 1 Stage 2 Stage 3 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 & settlements) - - (39,403.39) Gross carrying amount as at March 31, 2022 3,47,813.23 48,322.90 18,700.69 Assets originated* 4,07,584.31 20,714.72 - Net transfer between stages Transfer to stage 1 792.44 (773.69) (18.75) Transfer to stage 2 (4,658.63) 4,665.21 (6.58) Transfer to stage 3 (8,873.15) (4,337.41) 13,210.56 Assets derecognised or collected (excluding write offs) (2,77,013.72) (41,271.29) 19,478.60 Write - offs (including death cases & settlements) - - (37,643.32) Gross carrying amount as at March 31, 2023 4,65,644.48 27,320.44 13,721.20 Reconciliation of loss allowance Stage 1 Stage 2 Stage 3 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 & settlements) - - (39,403.39) Loss allowance on March 31, 2022 11,022.15 19,610.67 13,184.07 Increase of provision due to assets originated during the year 4,009.92 8,252.25 - Net transfer between stages Transfer to stage 1 7.77 (309.63) (17.51) Transfer to stage 2 (45.59) 1,862.89 (6.13) Transfer to stage 3 (86.74) (1,730.17) 12,322.58 Assets derecognised or collected (2,758.70) (16,366.93) 18,650.98 Impact of ECL on exposures transferred between stages during the year (7,555.61) (246.45) 6,307.66 Write - offs (including death cases & settlements) - - (37,643.31) Loss allowance on March 31, 2023 (#) 4,593.20 11,072.63 12,798.34 * Assets originated during the year has been presented on net basis i.e. the collections towards fresh loans has been netted off. Reconciliation of loss allowance from beginning to end of reporting period: (#) If the probability of default increases or decreases by 10 basis point the expected credit loss will increase or decrease by ` 337.12 lakhs respectively. Similarly, if the loss given default increases or decreases by 100 basis point the expected credit loss will increase or decrease by ` 173.94 lakhs respectively. Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2023 (Contd.) (All amounts in ` lakhs unless otherwise stated)