Arohan Financial Services Limited | Annual Report 2021-22

Almost 25% of Arohan’s recovery workforce of 800+ professionals are Trainees and Apprentices whom the Company has trained for and deployed in this role. In FY2021-22, Arohan has successfully recovered a total of INR 95 Cr from such 90+ DPDmicrofinance customers . PAR90 Performance (in INR Cr) 17.5 28.4 94.7 YTD Q4 Q3 Q2 Q1 19.8 To achieve such numbers, Arohan put into practice the following broad strategies and initiatives to connect with customers and ensure collections: Field Strategy - Customer Household Visit and Promise to Pay (PTP) Arohan’s field employees focused on touching base with the identified pool of customer to establish contact, counsel and collect the repayment, or ensure payment commitments through PTP (Promise to Pay) dates. Consistent and focussed follow-up calls, educating customers on the importance of a good Credit Bureau Record and visits to customers on a regular basis were made imperative, which helped identify the root-cause behind the customers turning delinquent. Accordingly, appropriate collection tool was deployed and further course of action was strategized in a timely manner. Legal Strategy - Soft Reminder Letter and Legal Notices Soft Reminder Letters have also been handed over to certain customers as a soft warning to them to repay to avoid any legal action in the future. In case of non-response by the customers to recovery efforts or to the Soft Reminder Letters, Legal Notices through Advocates have also been sent. Other key recovery initiatives Customer-focus Sandhi Settlement Scheme: To maximize recoveries from written-off accounts, Arohan launched the Sandhi Scheme in February 2021, offering such customers a one-time settlement opportunity basis a pre-defined settlement matrix. Recovery through Sandhi stood at INR 1.30 Crores as onMarch 31, 2022 compared to INR 22 lakh, as of FY2020-21. Customer Connect: Regular connect through calling initiatives were also established for dormant customers and Sandhi eligible customers through the in- house Customer Care team to understand their perspective and gauge their willingness to repay. Employee-focus Recovery employeeswere activelymentored to enable them to deliver better performance. In FY2021-22, Arohan launched a route-tracking software, SpotWays, to help its new field force to find a customer’s house easily and mentor them for greater focus on customers as per priority. GEOGRAPHIC REACH Arohan with its well-thought through 58 Annual Report | 2021-2022