Arohan Financial Services Limited | Annual Report 2021-22

36% 64% Banks Financial institutions INR 1,675 Cr through Securitization transactions from various lenders, demonstrating lender confidence on the asset quality of the Company. Arohan also raised INR 225 Cr of subordinated debt in the form of Non-Convertible Debentures and Term Loans during FY2021- 22 to augment its Tier II capital. The Company reported a healthy Capital Adequacy Ratio of 34.58% as on March 2022. Additionally, Arohan preferred to retain its diversified lender base and borrow from various lenders, ensuring to remain liquid while maintaining a low cost of borrowing. Overall, the Company borrowed INR 3,050.62 Cr from the market in FY2021-22 and currently, the Company has active relationships with 38 lenders. Some of the prominent lender relationships are with International Finance Corporation, State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank, along with Development Financial Institutions like SIDBI and NABARD, to name a few. Arohanalsosuccessfullyestablishednewlender relationships with Maanveeya Development & Finance Private Limited, ESAF Small Finance Bank, Piramal Structured Credit Opportunity Fund Alternatives and Shivalik Small Finance Bank in FY2021-22. The graph below depicts our borrowing mix as of 31-03-2022 CREDIT RATING Arohan Financial Services Limited is a dual credit rated organization. During the current financial year, both CARE and ICRA have reaffirmed the company rating as “A- with negative outlook”. The company has obtained highest grading of MFI-1 from CARE Advisory Limited. This grading is a testimony of Arohan’ s commitment to continue operating with a high degree of transparency while maintaining financial and operational sustainability and scalable processes. Term Loans External Commercial Borrowings Sub-Debts NCDs Securitisation & Assignment Cash Credit & Revolving Credit 7% 3% 11% 2% 52% 25% 66 Annual Report | 2021-2022