Arohan Annual Report FY 20-21

(INR in Lakhs ) Year ended March 31, FY 2021 FY 2020 Change (%) Total Revenue (A) 1,01,367.52 93,450.60 8.47% Less: Expenditure (B) 72,760.56 61,104.16 19.08 % Less: Impairment on financial instruments (C) 50,386.29 15,587.90 223.24% Profit/(loss) before tax (D)= (A-(B+C)) (21,779.33) 16,758.54 (229.96%) Pre-Provision Operating Profit Before Tax (E)= (C+D) 28,606.96 32,346.44 (11.56%) Total tax expense (F) (5,784.39) 4,078.49 (241.83%) Profit/(loss) after tax (G)= (D-F) (15,994.94) 12,680.05 (226.14%) Other-Comprehensive Income (1,193.67) 830.52 (243.73%) Total Comprehensive income for the year (17,188.61) 13,510.57 (227.22%) Earnings Per Share (EPS) -Basic (in INR) (14.56) 12.07 (220.63%) -Diluted (in INR) (14.56) 12.05 (220.83%) The operational highlights of the Company are summarized below: Year ended March 31, FY 2021 FY 2020 Change (%) Number of branches 737 711 3.65% Number of customer (in lakhs) 21 23 (8.70%) Number of employees 6,790 6,272 8.26% Gross loan portfolio (in crores) 4,648 4,854 (4.24)% DIRECTOR’S REPORT Dear Members, Your Board of Directors (the “Board”) takes pleasure in presenting the Annual Report of AROHAN FINANCIAL SERVICES LIMITED (the “Company”) together with the audited financial statements for the year ended March 31, 2021. FINANCIAL AND OPERATIONAL HIGHLIGHTS The financial performance of the Company is summarized below: Embattled by new waves of infections and mutant strainsof COVID-19, andwith the start of inoculation in several parts of the Country and visceral vaccine protectionism, the domestic outlook has once again turned grim and overcast with extreme uncertainty and downside risks. In view of the above situations the Company reported loss after tax of INR 15,994.94 Lakhs, with stronger Capital/ Networth and provision buffers. The Financial year started with the COVID-19 induced lockdown in March’20 to gradual unlocking, an unprecedented RBI loan repayment moratorium of 6 months, opening up in September’20. Needless to add, our clients’ livelihoods and incomes were impacted and the same is reflected in their repayment patterns over the last 7 months of previous year. The major performance ratios such as Opex, Margin, ROA, and CRAR were under control and optimum. The interest margin, qualifying asset and CRAR and debt equity ratio were at an optimal level and were in compliance with the RBI regulations. The ALM and Liquidity risk were under control. The Company has strong liquidity position with INR 1,21,600 Lakhs as usable funds including sanctions in hand, cash and cash reserves to support net loan disbursement and debt repayment. Relationship of the Company with PSU helped the Company in raising debt fund from PSUs, NABARD, MUNDRA and SIDBI as per government partial guarantee scheme. Key Ratios: FY 2021 FY 2020 Capital Adequacy Ratio (CRAR) 24.27% 24.80% Interest Margin 9.92% 9.96% Debt Equity Ratio 4.61 4.36 Theprovisionshadgrownsubstantially fromINR15,588 Lakhs last year to INR 50,386 Lakhs for the financial year. The Company carried write off INR 2,209 Lakhs in H2 of FY 21 in addition to INR 944 Lakhs in H1 of FY 21 for the clients with the ageing greater than 365 days. Annual Report | 2020-2021 82