Arohan Financial Services Limited | Annual Report 2022-23

Adalats and OTS (One Time Settlements) across the geographies. Microfinance is an employee intensive business and post the pandemic, retention and productivity of frontline workforce has emerged as a challenge in the financial services sector. Our focus on HR practices continues and we got recertified as a Great Place to Work (GPTW) – third year in a row. Diversity is a focus and while last year has been challenging, we expect the HR initiatives rolled out to help deliver better results this year. Our various portals like Samadhan, Saheli etc. allow for field issues to be escalated and handled by respective function on priority. Learning & Development continues to improve on the induction and refresher training process apart from playing a key role through Management Development programmes for themiddle level and the Performance Improvement Plan (PIP) process at the frontline. An innovative introduction is “Pragati – Unnati ki Oor”, a session every working Saturday morning for an hour reaching out to the last mile at the branches to cover the field officers. Work atmosphere safety and hygiene, especially in a mixed workforce reality, has been the focus for our Administration team, which also piloted a move away from a home-office branch system of the past in newer geographies. Our Corporate Social Responsibility unit is working very closely with the Aavishkaar Foundation at the Group level in synergising the efforts and has also finalised a new ESG policy for the business. Assam went through a difficult period in H1 with incessant rains and flooding since April 2022 and hence the implementation of the AMFIRS 2021, Assam State’s Microfinance Incentive & Relief Scheme got delayed with Cat 2 (OD borrowers) ending in Q4. Cat 3 (NPA customers) is expected to start in Q1 of this year, and the Steering Committee of the Lenders are in touch with the State Government to expedite the last category and close the scheme for normalcy to return. Our Accounts unit focused on cost control, financial metrics and working closely with the statutory auditors to complete the quarterly and yearly financials on time. Debt raising has always been a strong area and we focused on new relationships, on/off balance sheet transactions, while ensuring a low landed cost of funds for the business. Our Legal & Compliance Department ensuredwork onCorporateGovernance anddisclosure, and proper reporting to the many regulators we deal with. We held our ‘Shubh Aarambh’, preparation for the new business year meetings all across zones and regions in March 2023, and as we gear up for the next phase of growth, we have 4 engines to make it happen: The Organic channel, the Inorganic vertical, the Digital Lending platform and the Merger & Acquisition play. The Strategic Initiatives unit at the Corporate Office is the custodian of our rolling 5-year strategic plan, internal consulting and coordinating the equity raise efforts. Our Corporate Communications unit unveiled a new website and also launched a new Arohan Anthem (https://youtu.be/USaVLC7Cexw) celebrating the resilience of our two key stakeholders: Our borrowers and our employees. 7 | Annual Report 2022-23