Arohan Financial Services Limited | Annual Report 2022-23

211 | Annual Report | 2022-2023 Note 59: Additional regulatory information pursuant to Ministry of Company Affairs Notification dated March 24, 2021: (Contd.) I. Ratios Particulars As at 31 March 2023 As at 31 March 2022 Percentage change in ratio Explanation (a) Debt equity (2) [refer note 42] 3.39 4.03 (16%) Due to fresh equity infusion during the financial year in the form of compulsorily convertible preference shares (CCPS) (b) Return on equity ratio (3) 5.99% 6.15% (2%) (c) Net profit ratio (4) 8.41% 6.62% 27% (d) Return on capital employed (5) 5.99% 6.15% (2%) (e) Current ratio (1) Not applicable - (f ) Debt service coverage ratio (1) Not applicable - (g) Inventory turnover ratio (1) Not applicable - (h) Trade receivables turnover ratio (1) Not applicable - (i) Trade payables turnover ratio (1) Not applicable - (j) Net capital turnover ratio (1) Not applicable - (k) Return on investment (1) Not applicable - Notes: (1) The Company is a Non-Banking Financial Company registered under Reserve Bank of India Act, 1934, hence these ratios are not applicable (2) Debt - equity ratio = (debt securities + borrowings-other than debt securities + subordinated liabilities) / net worth, where net worth is aggregate of equity share capital and other equity. (3) Return on equity ratio = profit after tax / average net worth (4) Net profit ratio = profit before tax/ total revenue from operations (5) Return on capital employed = profit after tax / average networth J. Compliance with approved Scheme(s) of Arrangements There are no Scheme of Arrangements approved by the Competent Authority in terms of section 230 to 237 of the Act. K. Utilisation of borrowed funds and share premium No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. 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)