Chairman’s Address Dear Shareholders, I am pleased to present to you the Annual Report of Arohan Financial Services Limited, marking yet another remarkable chapter in our journey together. The financial year 2024 has been nothing short of exceptional for the Indian financial landscape against the backdrop of a dynamic global economic canvas. The OECD’s latest Economic Outlook paints a picture of steady global GDP growth, projected at 3.1% for 2024, with a modest uptick to 3.2% anticipated in 2025. Despite significant central bank interest rate adjustments aimed at stabilizing prices, the global economy has shown surprising resilience, a testament to its robustness. In the midst of this global scenario, India shines brightly as a beacon of growth. According to Moody’s, India is poised to lead among the major G20 economies, with a GDP growth rate accelerated to approximately 8% in FY 2024 from 7% in the previous fiscal year. Notably, the third quarter of FY 2024 saw an impressive growth rate of 8.4%, surpassing market expectations, fuelled by robust public investment, resilient private consumption, and a thriving services sector. The Indian government, in tandem with the Reserve Bank of India, continues to create avenues for millions through financial inclusion initiatives. This conducive economic environment, coupled with revised regulatory frameworks, has propelled the microfinance sector forward, witnessing a decent 20% growth in loan portfolios, reaching INR 4.3 tn across 75 mn plus borrowers by the close of FY24. Notably, a study by NCAER underscores the MFI sector’s substantial contribution, constituting 2.7% of India’s GDP as of December 2023. The Government of India introduced the concept of “Amrit Kaal” or “The Era of Elixir”, outlining a transformative vision for a “New India” by 2047. This vision encompasses holistic economic growth, enhanced living standards, infrastructural advancements, technological innovation, and a renewed global stature for India. Microfinance emerges as a pivotal instrument in this journey, particularly in bolstering small industries and fostering employment opportunities. The pursuit of high-income status by 2047 necessitates inclusive growth, benefiting all strata of society. This entails not only economic reforms but also the creation of quality employment opportunities, with a special emphasis on bridging gender gaps in workforce participation. The microfinance sector in India has undergone a Dinesh Kumar Mittal Chairman Board of Directors 1 | Annual Report 2023-24
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