Arohan Financial Services Limited | Annual Report 2022-23

| 208 Annual Report | 2022-2023 Financial Note 56: Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company. The Company is in a single business segment (primary segment) of providing financial services to customers in India. Further, the Company is operating in India which is considered as a single geographical segment. Note 57: Lease related disclosures (a) Company as a lessee In the Statement of Profit and Loss for the current and previous year, operating lease expenses which were recognised as rental expenses is now recognised as depreciation expense for the right-of-use asset and finance cost for interest accrued on lease liability. De-recognition of rental expenses and recognition of depreciation and finance costs has positively impacted EBIDTA by ` 216.85 lakhs (March 31, 2022 : ` 243.20 lakhs) and negatively impacted the PBT by ` 11.82 lakhs (March 31, 2022 : ` 0.49 lakhs). (b) The table below describes the nature of Company's leasing activities by type of right-of-assets recognised on balance sheet: As on March 31, 2023 As on March 31, 2022 Right of use assets Number of leases Range of remaining term Average remaining lease term Number of leases with extension option Number of leases with purchase option Number of leases with termination option Office premises 10 8 months to 35 months 24 months 10 - - Furniture 3 75 months 75 months 3 - - Right of use assets Number of leases Range of remaining term Average remaining lease term Number of leases with extension option Number of leases with purchase option Number of leases with termination option Office premises 8 2 months to 71 months 26 months 8 - - Furniture 3 87 months 87 months 3 - - (c) Lease payments, not recognised as a liability The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight- line basis. The expense relating to payments not included in the measurement of the lease liability is as follows: Particulars Year ended 31 March 2023 Year ended 31 March 2022 Short-term leases 1,286.03 1,110.51 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)