Arohan Annual Report FY 20-21

Cost of Borrowings Arohan’s cost of borrowings for FY 2020-21 was at 10.64% as compared to 10.89% in FY 2019-20, in line with earlier trends of reducing cost of funds. The Company concluded the year by participating inapool bond issuance,wherefiveother renowned MFIs also participated in issuance of unlisted NCDs, which was subscribed by the CDC Group, a UK-based development finance institution, and partially guaranteed by Northern Arc. Credit Ratings In FY 2020-21, Arohan became a dual credit rated company, by being awarded credit ratings for long term bank facilities/non-convertible debentures of A- (stable outlook) by both CARE Ratings Limited and ICRA Limited as on March 31, 2021. Arohan also achieved the highest-rated MFI 1 grade from CARE Advisory Research and Training Limited, a wholly owned subsidiary of CARE Ratings Limited, in 2020. The Company has also been assigned a grading of alpha/M2 by MCRIL, which is second highest on their assessment scale. These gradings and ratings are a testimony of Arohan’s commitment to continue operating with a high degree of transparency, financial and operational sustainability, and scalable processes. Annual Report | 2020-2021 52