Arohan Financial Services Limited | Annual Report 2021-22

Way forward for FY2022-23 With the new RBI guidelines for microfinance activities in effect from April 1, 2022 and over 80% of the total population of India already vaccinated with two doses (97% of the population vaccinated with at least one dose), the key focus area of Arohan in this fiscal year will be to grow its business by deepening presence in the existing states of operations, as well as expanding into newer states. Also, in line with its Mission statement, the Company’s focuswill beonemergingasaone-stopfinancial solution provider for the complete household of its customers. This will help Arohan in increasing the number of relationships with a household. One of the key focus areas of the Company, in terms of technology, will be to start digital lending model for the existing customer base, where customers can avail credit service with the ease of her smartphone, digitally without any physical ormanual intervention and canuse the Apna Arohan Customer app for all services related toher loan includingdigital repayments. This will play a key role in reducing the turn- around time for any credit related services, and improve the overall user experience and customer delight while allowing her to embark on the journey of a “Digital Arohan”. In line with the new guidelines of the Reserve Bank of India, Arohan has already implemented a new pricing policy (approved by its Board) with effective from April 1, 2022. Additionally, Arohan has already been live with CB360 (Credit Bureau 360 degree) since a few years, whereby credit bureau records of both, the borrower and the co-borrower were checked before loan disbursement – this is in line with the new guidelines, where a loan amount has to be decided after considering all loans associated with the customers’ household. Arohan is one of 38 NBFCs, who have received the approval to operate as an Authentication User Agency (AUA) and onboard customers through ‘Aadhaar-enabled eKYC’. This will help in the sourcing of quality customers and facilitatebetter customer experienceover time. With all its policies aligned as per guidelines, and new technological interventions enabling scale and improved user experience across different business functions, Arohan is well- poised for growth towards achieving its Vision of impacting 20 million lives by the year 2025. 51 Annual Report | 2021-2022 Management Discussion & Analysis