149 | Annual Report | 2024-2025 Arohan Financial Services Limited Notes to financial statements for the year ended March 31, 2025 Summary of material accounting policies and other explanatory information to Financial Statement 1 Corporate informatories Arohan Financial Services Limited (‘the Company’) is incorporated under the provisions of the Companies Act 1956. The Company has been registered as a Non-Banking Financial Company ('NBFC') with the Reserve Bank of India ('the RBI') from July 08, 2009 and pursuant to the notification issued by the RBI for classification of NBFCs as Non-Banking Finance Company – Micro Finance Institutions ('NBFC-MFI'), the Company’s application for registration as an NBFC-MFI was approved by the RBI on January 10, 2014. The Company has converted itself into a public limited company and changed its name to Arohan Financial Services Limited and has received a fresh certificate of incorporation dated May 25, 2018. The Company is primarily engaged in providing the livelihood promotion services such as microcredit to socio-economically disadvantaged customers un-reached by the formal banking systems. In addition to the core business of providing micro-credit, the company uses its distribution channel to provide certain other financial products and services. 2 Basis of preparation The Audited Financial Statement of the Company comprise of the Statement of Assets and Liabilities as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year ended March 31, 2025 and the Material Accounting Policies and explanatory notes (collectively, the 'Financial Statement'). The Financial Statement have been compiled from: (i) Statement of compliance with Indian Accounting Standards (Ind AS) Audited Ind AS financial statements of the Company as at and for year ended March 31, 2025 are prepared in accordance with Ind AS, as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended by the companies(Indian Accounting Standards) Amendment Rules,2016 (as amended),other applicable guidelines issued by the RBI and the financial statements presented as per format prescribed under division III to Schedule III of Companies Act, 2013. which have been approved by the Board of Directors at their meeting held on May 23, 2025. (ii) Historical cost convention These financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities, net defined benefit assets/ liability and share based payments which are measured at fair values as explained in relevant accounting policies. The financial statement were approved by the Company’s Board of Directors and authorised for issue on May 23, 2025. The Guidance Note on Division III - Schedule III to the Companies Act. 2013 issued by the Institute of Chartered Accountants of India ("ICAI") has been followed in so far as they are
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