Arohan Financial Services Limited | Annual Report 2022-23

| 204 Annual Report | 2022-2023 Financial Note 52: Disclosures in terms of RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20 dated 04 November 2019 have been given below: (Contd.) (V) Stock ratios in percentage As at 31 March 2023 As at 31 March 2022 1. Commercial papers as a % of total liabilities Not Applicable Not Applicable 2. Commercial papers as a % of total assets Not Applicable Not Applicable 3. Commercial papers as a % of public fund Not Applicable Not Applicable 4. Non-convertible debentures (original maturity of less than one year) as a % of total liabilities Nil Nil 5. Non-convertible debentures (original maturity of less than one year) as a % of total assets Nil Nil 6. Non-convertible debentures (original maturity of less than one year) as a % of public fund Nil Nil 7. Other short-term liabilities as a % of total liabilities 57.79% 62.82% 8. Other short-term liabilities as a % of total assets 44.94% 50.52% 9. Other short-term liabilities as a % of public fund 59.66% 64.01% (vi) Institutional set-up for Liquidity Risk Management The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board approves the governance structure, policies, strategy and the risk limits for the management of liquidity risk. The Board of Directors approves the constitution of the Risk Management Committee (RMC) for the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company. The meetings of RMC are held at quarterly interval. Further, the Board of Directors also approves constitution of Asset Liability Committee (ALCO), which functions as the strategic decision-making body for the asset-liability management of the Company from risk-return perspective and within the risk appetite and guard-rails approved by the Board. The main objective of ALCO is to assist the Board and RMC in effective discharge of the responsibilities of asset liability management, market risk management, liquidity and interest rate risk management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds. ALCO meetings are held once in a month or more frequently as warranted from time to time. The minutes of ALCO meetings are placed before the RMC and the Board of Directors in its next meeting for its perusal/ approval/ ratification. 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)