243 | Annual Report | 2024-2025 Arohan Financial Services Limited Notes to financial statements for the year ended March 31, 2025 (Contd.) (All amounts in ` lakhs unless otherwise stated) Note 62: Additional regulatory information pursuant to Ministry of Company Affairs Notification dated March 24, 2021: (cont'd) I. Ratios Particulars As at March 31, 2025 As at March 31, 2024 Percentage change in ratio Explanation (a) Debt equity(2) (refer note 44) 2.32 3.14 (26.00%) Reduction in debt equity ratio is due to reduction in borrowings and repayment of borrowings. (b) Return on equity ratio(3) 5.57% 19.30% (71.00%) Decrease in ratios are due to reduction in business volume as compared to the last year majorly due to the cease and desist order issued by Reserve Bank of India (RBI). (c) Net profit ratio(4) 8.16% 25.92% (69.00%) (d) Return on capital employed(5) 5.57% 19.30% (71.00%) (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
RkJQdWJsaXNoZXIy NTE5NzY=