Management Discussion & Analysis that the Company proactively used in FY 2024 to ensure recoveries through settlements are the Local and National Lok Adalat drives. Through these legal interventions, the Company has recovered INR 20 Cr+ in FY 2024 which is 8 times more than the previous fiscal. Other Key Recovery Initiatives: 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 (OTS) opportunity on the basis of a pre-defined settlement matrix. FY 21 FY 22 FY 23 FY 24 40 90 470 2881 Recovery through Sandhi in Cr Recovery through Sandhi stood at INR 35 Cr as on March 31, 2024 compared to INR 6 Cr as on March 31, 2023, and INR 1.30 Cr as on March 31, 2022. FY 21 FY 22 FY 23 FY 24 33 495 1541 22411 No. of Customers Settled through Sandhi Approximately 22,000+ loans were settled through this scheme in FY 2024 alone, compared to 1500+ in FY 2023 and 495 in FY 2022. Cluster Receivable Managers (CRMs), and bolstered by a Central Strategy Team, along with a dedicated force of over 900 Receivable Executives (REs) on the frontline, Arohan achieved significant success in debt recovery. Notably, in FY 2024, Arohan successfully recovered a total of INR 140 Cr, with an impressive 60% of this amount, totalling INR 84 Cr, retrieved from previously written-off accounts. This achievement represents a remarkable 25% increase in recovery compared to the previous fiscal year, underscoring Arohan’s commitment to continuously improving its debt recovery processes and delivering tangible results. 12 45 112 140 FY 21 FY 22 FY 23 FY 24 Recovery in Crs To achieve such numbers, Arohan put into practice the following broad strategies and initiatives to connect with customers and ensure recoveries: Field Strategy • Customer Household Visit and Promise to Pay (PTP): Arohan’s cadre of Receivable Executives is focused on establishing connect with the identified pool of customers, educating them on the importance of good credit discipline and collecting repayment, or ensuring payment commitments through Promise to Pay (PTP) dates. • Recovery Scorecards: Consistent customer calls and visits are prioritized with the aid of customer-level Recovery Scorecards which have been developed on the basis of collection trails, payment history, delinquency, and the on-us & offus performances of our customers. Legal Strategy Soft Reminder Letters are handed over to certain customers as a soft warning to them to repay to avoid any legal action in the future. In case of no response from the customers, Legal Notices through Advocates are also sent. Another dispute redressal mechanism Annual Report 2023-24 | 40
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