Arohan Financial Services Limited | Annual Report 2022-23

| 76 Annual Report | 2022-2023 Directors’ Report with related parties, if any, were placed before the Audit Committee from time to time. Details of the related party transactions, which are exempted according toaproviso toSection188of theCompanies Act 2013, during FY 2022-23 are disclosed in note of the financial statements. There were no materially significant related party transactions entered into by the Company which may have potential conflict with the interest of the Company except as disclosed in note of the financial statements. All contracts/ arrangements/ transactions entered by the Company during the Financial Year 2022-23, with its related parties, were in the ordinary course of business and on an arm’s length basis and were reviewed and approved by the Audit Committee of the Board. Further, during the Financial Year, the Company has not entered into any contract/ arrangement/ transaction with related parties which could be consideredmaterial in accordance with the Company’s policy of Materiality of Related Party Transactions except those provided in Form AOC-2, annexed hereto, marked as Annexure II . Further, suitable disclosure as required by the Accounting Standards has been made in the Notes to the Financial Statements. The policy on Related Party Transaction, as approved by the Board, is displayed on the website of the Company at: https://www.arohan.in/wp-content/themes/ arohan/resources/related-party-transactions-policy.pdf AMOUNT TRANSFERRED TO STATUTORY RESERVES During the year under review the Company had incurred profit and accordingly during the year the Company has transferred an amount of INR 14.14 Crores to Statutory Reserve as required (20% of Profit after Tax) under Section 45-IC of The RBI Act, 1934. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY There are no material changes and commitments affecting the financial position of the Company, which has occurred between the end of the financial year of the Company i.e. March 31, 2023 and the date of the Directors’ Report. CONSERVATIONOF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 The provisions of Section 134(3) (m) of the Companies Act, 2013 relating to conservation of energy and technology absorption do not apply to the Company. The Company has, however, used information technology extensively in its operations. During the year under review, the Company’s earning in foreign exchange was INR 0.06 Crores. The details of foreign earnings have also been captured in note of the Financial Statements. ANNUAL EVALUATION OF THE BOARD The Board pursuant to the provisions of Section 178 of the Companies Act 2013, the Nomination and Remuneration Committee ( “NRC” ) has carried out evaluation of individual Director’s performance. In this regard the NRC had met on May 12, 2023 to carry out the above mentioned evaluation. The director’s evaluation was carried out electronically through Diligent Software in a secured environment. The directors were allowed to carry out the evaluation in diligent software with their respective secured log in. A detailed report on the director’s performance evaluation as generated from diligent software, was placed before the Board and Committee in their meeting dated May 12, 2023. The Members of the NRC reviewed the performance of all the individual Directors of the Company in accordance with the relevant sections of the Companies Act, 2013. The Committee agreed that the effectiveness of participation of the Directors in various meetings of the Board and its Committees were satisfactory. All the Directors made significant contributions in ensuring ethical standards and the statutory, as well as, regulatory compliances. The Members of the NRC also agreed that the financial performance of the Company over the years is