| 240 Annual Report | 2024-2025 Financials Arohan Financial Services Limited Notes to financial statements for the year ended March 31, 2025 (Contd.) (All amounts in ` lakhs unless otherwise stated) Note 60: Lease related disclosures (cont'd) (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 March 31, 2025 Year ended March 31, 2024 Short-term leases 1,933.51 1,558.83 (d) Total future lease payments relating to underlying leases are as follows Particulars Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years More than 5 years As at March 31, 2025 Lease payments 200.21 161.99 145.31 134.74 84.42 172.32 898.99 Less: Finance cost 63.46 50.96 39.65 28.76 18.92 21.83 223.58 Net present values 136.75 111.03 105.66 105.98 65.50 150.49 675.41 Particulars Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years More than 5 years As at March 31, 2024 Lease payments 269.00 185.43 131.29 123.90 123.90 254.55 1,088.07 Less: Finance cost 75.27 57.07 46.24 37.44 27.93 40.72 284.67 Net present values 193.73 128.36 85.05 86.46 95.97 213.83 803.40 (e) Total cash outflow for leases for the year ended March 31, 2025 was ₹278.05 lakhs (March 31, 2024: ₹216.48 lakhs). (f) The Company has leases for office building and furnitures. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-ofuse assets in a consistent manner to its property, plant and equipment. Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and other premises, the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts. (g) As per Ind AS 116 the weighted average incremental borrowing rate applied to lease liabilities recognised was 11%.
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