Arohan Financial Services Limited | Annual Report 2022-23

| 78 Annual Report | 2022-2023 Directors’ Report Information Company of India Private Ltd, High Mark Credit Information Services Pvt. Ltd., Equifax Credit Information Services Pvt. Ltd., and Transunion CIBIL Limited and shares all the customer’s data to them on regular basis. RESOURCES AND LIQUIDITY The Company being a Systemically Important Non- Deposit Accepting NBFC is subject to the capital adequacy requirements prescribed by the Reserve Bank of India. The Company was required to maintain a minimum Capital to Risk Asset Ratio (CRAR) of 15% as prescribed under the Non-Banking Financial Company-Micro Finance Institutions (Reserve Bank) Directions, 2016 (as amended from time to time) based on total capital to risk weighted assets. Your Company maintained a CRAR ratio higher than the RBI prescribed ratio (15), which was 28.74% as on March 31, 2023. The Company has an outstanding secured and unsecured borrowings of INR 4,533.49 Crores at the end of Financial Year 2022-23. RBI GUIDELINES & SRO Your Company is registered with Reserve Bank of India ( “RBI” ), as a non-deposit accepting NBFC ( “NBFC- ND-SI” ) under Section 45-IA of the RBI Act, 1934. As per Non-Banking Finance Companies RBI Directions, 1998, the Directors hereby report that the Company did not accept any public deposits during the year and did not have any public deposits outstanding at the end of the year. The Company being the member of MFIN, follows the Code of Conduct as prescribed by the SRO. The Company also complies with the standards and rules as prescribed by the above SRO from time to time. CREDIT RATING The Company’s Financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies as given below: Instrument Rating Agency Rating Outlook Bank Instruments CARE Ratings Limited A- Negative Non-Convertible Debentures CARE Ratings Limited A- Negative Bank Instruments ICRA Limited A- Stable Non-Convertible Debentures ICRA Limited A- Stable PARTICULARS OF EMPLOYEES The ratio of the remuneration of each director to the median employee’s remuneration and other details in terms of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, have been annexed herewith as Annexure IV to the Directors’ Report. The statement containing particulars of employees as required under Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in a separate annexure forming part of the Directors’ Report. In terms of Section 136 of the Companies Act, 2013, the Directors’ Report and the Accounts are being sent to the Members excluding the aforesaid annexure and the same is open for inspection at the Registered Office of the Company. A copy of the statement may be obtained by the Members, by writing to the Company Secretary of the Company. CORPORATE GOVERNANCE The Company strives to adopt and adhere to the highest standards of Corporate Governance principles and best practices. With this objective the Company has put in place various policies, systems and processes to achieve transparency, high levels of business ethics and compliance with applicable laws. The Board and other Sub Committee of Board ensures the high standards of transparency and accountability in all its activities. The best management practices