Arohan Financial Services Limited | Annual Report 2021-22

Vayu Vayu (Wind) is responsible for enabling movement, ensuring progress and growth. Arohan’s strength in liquidity management and capitalization has supported its journey of progress through the years, allowing it to earn the unrelenting confidence of its stakeholders while promising continued growth. During the FY2021-22, customer household income at the base of the pyramid witnessed a bumpy ride, starting with disruptions posed due to Wave II of the COVID-19 pandemic. The infection spread faster than ever and the reported numbers cases saw a sharp rise in the month of April 2021, the start of the financial year itself. Most of the states Arohan operates in, announced localised lockdowns to control the spread of the pandemic, thus, adversely affecting business activities, resulting in reduced household income for the customers during this period. However, by the second half of Q2, the Arohan witnessed good recovery and things were back tonormal. Business activities gainedmomentumduring the festive season and flourished till December 2021. However, with theWave III of COVID-19 hitting Q4 of FY2021-22, business got disrupted slightly although for a short period of time, picking up pace in Q4 end which helped in a good financial year closing in March 2022. The COVID-19 pandemic has changed the way of managing businesses. For an NBFC, managing liquidity is the most essential aspect of business. The changing behaviour of both, the business assets and liabilities have forced the management to revisit the approach to manage liquidity. 63 Annual Report | 2021-2022 Management Discussion & Analysis