Arohan Financial Services Limited | Annual Report 2021-22

Promoter’s Address Dear Shareholders, Colleagues and Friends, We are delighted to share the Annual Report of Arohan Financial Services Limited, Non- Banking Finance Company – Micro Finance Institution, for FY2021-22. Post COVID-19, the world remains tumultuous and the dangerous clouds of war are queering the situation further. Amidst the challenging global macro-environment, we continue to move forward, trying to build an innovative and impactful business that would encourage our women borrowers to be powerful agents of change, not only for themselves and their families but also for the society at large. As I had mentioned in my last year’s address, our long term vision for Arohan is to evolve into a new-age technology-enabled digital financial inclusion platform that will enable millions of customers to participate in the economy of the future. I am extremely proud to share that Arohan is among the first Microfinance Institutions to receive approval from the Government of India to conduct Aadhaar-enabled eKYC in order to deliver a seamless verification process to millions of our customers, which is a real boost to our tech-stack capabilities. The support from the ecosystem and the government allows us to deliver exceptional results for our borrowers and we are grateful to the authorities and delighted by the progress that has been made. Our experience over the last two years has convincedus thatweneed tocarefully study the implications of various external disruptions on the livelihood of our clients. While the impact of COVID-19 and the ensuing lockdowns were a stunning blow to our perfectly crafted world of micro-lending, its debilitating impact on the micro-ecosystems of livelihoods of the poor was an eye opener. A good microfinance ecosystem cannot exist without a significant understanding of potential disruptions that the livelihood of our clients may face, and designing products that mitigate those vulnerabilities. As a part of senior management engagement, I had the privilege of spending some time with the best and the brightest at Arohan, where we collectively tried to reimagine our role as solution providers to the existing and potential challenges that our customers may be dealing with. We have identified climate change as one of the biggest challenges for mankind, and more importantly our customers, and have also decided to agree to pilot a Green Loan Product that would allow our borrowers to transition to a more sustainable livelihood 12 Annual Report | 2021-2022