economic transformation. At Arohan, we believe in the transformative power of small, responsible credit delivered with care and purpose. Through our offerings, we have empowered millions of underserved women and families with the financial tools to uplift their livelihoods, achieve stability, and pursue their dreams. In FY 2025, Arohan expanded its reach while maintaining our strong commitment to asset quality, customer protection, and risk management. Our approach to microfinance is not just about access to capital - it is about creating a relationship of trust, responsibility, and long-term impact. We were hit by an unfortunate Cease & Desist order served on us by the RBI in October 2024, but the rigorous interaction with them across levels helped us clarify the key points specific to the business, and the Company. I am happy that Arohan was the second fastest out of the Cease & Desist order in just 2.5 months. I am happy to state that in a deregulated environment; the Board has self-imposed a cap of 12% margin on cost of funds on microfinance loan pricing – a first and unique in the sector. Arohan’s unique positioning in the sector is built upon our steadfast focus on customercentricity, responsible lending, and technologyled operational excellence. But beyond financial metrics, what truly sets us apart is our deeprooted culture of integrity and strong corporate governance. We are proud of the robust frameworks we have established to ensure transparency, compliance, and ethical conduct at all levels of the organisation. These foundations not only build stakeholder confidence but also ensure that we remain resilient and adaptive in a changing environment. This year, we also witnessed key changes in our Board. We welcomed new members to the Board - Mr. Kummamuri Narasimha Murthy as the new Head of Audit Committee, Mr. Ulhas Sharad Deshpande as the new Head of Nomination and Remuneration Committee and Mr. Jose Joseph Kattoor as the new Head of Risk Management Committee, bringing with them a wealth of experience and insight to further strengthen our Board. We are certain that the diverse expertise and fresh perspectives of the new members will help steer Arohan into its next phase of growth. At the same time, we bade farewell to esteemed colleagues, Mr. Rajat Nag who stepped down upon completion of his second term as Independent Director overseeing Audit & Risk Committee, Ms. Matangi Gowrishankar who stepped down as Independent Director overseeing Nomination & Remuneration Committee and Mr. Sumantra Banerjee having contributed immensely to the institution’s journey. On behalf of the Board and the entire Arohan family, I extend my heartfelt gratitude to them for their service and stewardship. As we move forward, I would like to take this opportunity to thank our investors, regulators, lenders, customers, and employees. Your continued confidence and commitment have enabled us to sustain and grow our mission in times of both challenge and opportunity. To my fellow Board members and the management team - thank you for your unwavering dedication and strategic foresight. Together, we are not just building a financial institution; we are nurturing a movement that empowers lives and strengthens communities. In the coming years, Arohan will continue to evolve - innovating responsibly, scaling sustainably, and staying true to the purpose that defines us. We remain committed to making a meaningful difference in the lives we touch, in line with the broader aspirations of a Viksit Bharat. Thank you once again for your enduring support. Dinesh Kumar Mittal Chairman Board of Directors Chairman’s Address | 2 Annual Report | 2024-2025
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