Arohan Financial Services Limited | Annual Report 2021-22

Chairman’s Address Dear Friends and Shareholders, The financial year 2021-22 has been another extraordinary year of opportunities and learnings for the Indian financial sector, amidst ensuing challenges arising from the pandemic. The interlinked nature of India’s political and environmental fabric, along with the nation’s growth appetite and macro-economic capacity have led to green shoots of an economic rebound. The Government of India, along with the Reserve Bank of India, continue to provide opportunities to restore normalcy for millions of customers served by the Indian financial inclusion industry. As the impact of the global pandemic gradually becomes milder, the industry, with the support of the Regulators and the Government, scales its efforts on sustainable and inclusive growth in India. Arohan, as a leading financial inclusion player, has proactively reimagined and upgraded its operational processes, aided by efficient use of technology, in response to the evolving new normal. The post COVID-19 market opens the industry to untapped possibilities, and Arohan continues to remain focused on growth, turning challenges into opportunities, as always. Access to credit and the role of microfinance institutions therein for strengthening the foundation of the socio-economic pyramid of India, the financially underserved segment, has been reinstated stronger than ever with the RBI’s new guidelines on harmonization. The Reserve Bank of India, in March 2022, released a revised Regulatory Framework for MicrofinanceLoans, puttinganend toregulated interest rates in the segment and harmonising micro-lending norms across banks and non- bank lenders. This signals a significant moment of arrival for the Indian microfinance industry, since the RBI, through this Master Direction, recognizes the maturity of the microfinance industry. This nowshifts theonus of responsible lending to the players in the industry and Arohan, with its sharp focus on quality through robust Credit and Risk verticals, has gained a pole position in implementing the changes in credit and pricing norms, in the best interests of serving our customer base. Arohan continues to steadfastly tread on its roadmap to digitalisation. We have now transitioned onto an e-documentation process to eliminate dependency on physical documentation. Our customer app, ApnaArohan, was launched over the previous 10 Annual Report | 2021-2022