Arohan Financial Services Limited | Annual Report 2022-23

| 174 Annual Report | 2022-2023 Financial Note 44: Transferred financial assets In the course of its micro finance activity, the Company makes transfers of financial assets, where legal rights to the cash flows from the asset are passed to the counterparty and where the Company retains the rights to the cash flows but assumes a responsibility to transfer them to the counterparty. The Company has securitised its loan assets to an unrelated and unconsolidated entities. As per the terms of the agreements, the Company is exposed to first loss default guarantee ranging from 17% to 18% of the amount securitised and therefore continues to be exposed to significant risk and rewards relating to the underlying mortgage receivables. Hence, these loan assets are not derecognised and proceeds received are presented as borrowings. The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred financial assets do not qualify for derecognition, together with the associated liabilities: Particulars As at 31 March 2023 As at 31 March 2022 Gross carrying amount of securitised assets 79,717.95 1,16,087.73 Gross carrying amount of associated liabilities 72,139.97 1,09,822.63 Carrying value and fair value of securitised assets 79,717.95 1,16,087.73 Carrying value and fair value of associated liabilities 72,139.97 1,09,822.63 Net position 7,577.98 6,265.10 Note 43: Maturity analysis of assets and liabilities (Contd.) Particulars As at 31 March 2023 As at 31 March 2022 Within 12 months After 12 months Within 12 months After 12 months LIABILITIES AND EQUITY Liabilities Financial liabilities Payables (I) Trade payables (i) total outstanding dues of micro enterprises and small enterprises - - - - (ii) total outstanding dues of creditors other thanmicro enterprises and small enterprises - - - - (II) Other payables (i) total outstanding dues of micro enterprises and small enterprises - - - - (ii) total outstanding dues of creditors other thanmicro enterprises and small enterprises - - - - Debt securities 10,839.01 19,245.76 10,736.36 17,602.06 Borrowings (other than debt securities) 2,44,787.11 1,36,149.22 2,46,617.25 94,461.10 Subordinated liabilities 2,545.50 39,782.33 1,102.94 42,206.43 Others financial liabilities 9,575.30 370.84 3,368.75 344.52 2,67,746.92 1,95,548.15 2,61,825.30 1,54,614.11 Non-financial liabilities Current tax liabilities (Net) Provisions 473.17 1,995.12 439.57 1,660.13 Other non-financial liabilities 2,250.92 - 1,970.55 101.70 2,724.09 1,995.12 2,410.12 1,761.83 TOTAL LIABILITIES 2,70,471.01 1,97,543.27 2,64,235.42 1,56,375.94 Net Equity 1,32,283.14 1,519.37 1,30,063.45 (27,715.36) 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)