55 | Annual Report | 2025-2026 for the entire organisation. This achievement confirms that the company has implemented a process-driven working system aligned with global Quality Management System (QMS) standards. It reflects a steadfast focus on maintaining clearly defined processes and delivering consistent, high-quality services to enhance the customer experience. Infrastructure and Technological Integration Effective auditing in the microfinance sector requires a balance between technical expertise and on-theground operational insight. To meet this need, Arohan has established a substantial infrastructure comprising approximately 200 skilled auditors deployed across its operational regions. These professionals undergo a rigorous screening process and receive targeted training and development to remain adept at evaluating dynamic business environments. By the close of FY 2026, the function reached a significant operational scale, auditing over 1,000 branches every quarter. This coverage spans all major business verticals, including: ● Microfinance. ● Micro Enterprise Loans. ● Arohan Privilege technology based Lending. ● Sourcing and Collection (S&C) ● Term loans and Direct assignments. Notably, both Microfinance and S&C branches maintained 100% audit coverage throughout the year, underscoring a rigorous commitment to service integrity. To drive efficiency, the department utilizes a real-time, web-based Audit Management System (AMS) developed with the in-house IT team. The AMS enables systematic documentation, real-time monitoring, and the prompt resolution of findings. This was further bolstered in 2023 with the rollout of a Fraud Management System (FMS), which enhances the tracking and documentation of potential fraud across all stakeholder touchpoints. Together, these digital tools support a culture of transparency and operational resilience. Data Analytics and Audit Methodology The integration of data analytics has significantly enhanced audit effectiveness at Arohan. The dedicated Data Analytics team provides exception reports, Management Information Systems (MIS), and analytical inputs that offer valuable leads for field verification. These insights empower management to proactively strengthen internal controls. Arohan employs a comprehensive three-pronged audit methodology to review business functions: 1. Field Processes: A focus on the verification of collection and disbursement processes. 2. Back-End Activities: An examination of administrative processes and documentation to identify deviations. 3. Customer Contact: A cross-check of systems that directly influence customer behavior and interactions. Branches are audited quarterly and assigned a grade based on their scores and observations. Additionally, branches undergo either regular or “snap” audits on a half-yearly basis. Snap audits are specifically designed to target high-risk areas with short turnaround times for rapid issue detection. Support functions, such as IT, HR, Finance, Compliance, and Central Operations, are audited at least twice per year. All formal reports are submitted to the Audit Committee quarterly to ensure consistent board-level oversight. The Vigilance Function To further safeguard the organisation, Arohan established a Vigilance Department in FY 2021. Led by an experienced ex-serviceman with expertise in security and investigative operations, this department focuses on conducting thorough investigations into major fraud cases. The Vigilance team also serves as a liaison with local government agencies to obtain necessary external support. The Vigilance Department works in close coordination with the Internal Audit team. Together, these two functions serve as the cornerstone of Arohan’s commitment to integrity, security, and sustainable business growth, ensuring that the organisation remains resilient in a complex financial landscape. INFORMATION TECHNOLOGY Arohan sets itself apart in the financial inclusion space through a future-ready, technology-first approach that places customer service and efficiency at its core. By continuously enhancing its IT infrastructure and embracing pioneering digital initiatives, Arohan has built a robust, agile ecosystem that empowers faster, more personalised, and seamless service delivery. These strategic investments in technology not only streamline operations but also enable smarter decision-making and deeper customer engagement. Embracing a Commitment to Data Excellence At Arohan, data excellence is at the heart of our technology-driven strategy to deliver superior customer service and maximize operational efficiency. By harnessing
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