Bank Balances as of March 31, 2024 was INR 1,267.61 Cr, excluding undrawn sanctions of INR 1,038 Cr. Further, the Liquidity Coverage Ratio (LCR) as of FY 2024 end was reported at 843%. The graph below depicts our borrowing mix as of March 31, 2024 PSUs Private Banks NBFC & Fis 17.38% 35.76% 46.86% 12.18% 75.29% 6.27% 6.26% 0.00% Term Loan Sub-Debt CC Sec. & Assign NCDs CREDIT RATING Arohan has attained a dual credit rating, showcasing its remarkable strides in enhancing portfolio quality, expanding its business footprint with new branches, and diversifying its portfolio. As a testament to its robust performance, both CARE and ICRA have elevated the company’s rating to ‘A’ with a Stable outlook in the fourth quarter of FY 2024. This marks a significant achievement, with two upgrades accomplished in the financial year – first, an outlook enhancement and second, a rating upgrade. Furthermore, Arohan has secured the prestigious MFI1 grading from CARE Advisory Limited, the highest accolade in its category. This distinguished rating underscores Arohan’s unwavering commitment to transparency, financial prudence, operational sustainability, and the adoption of scalable processes. It reaffirms Arohan’s position as a leader in the industry, poised for continued growth and success. Way forward for FY 2025 To facilitate robust growth and expand our business horizon, the Company plans to raise approximately INR 8000 Cr in debt capital through various instruments such as Term Loans, External Commercial Borrowings (ECB), Direct Assignment, and Securitization. This infusion of capital will provide the necessary financial impetus for our anticipated growth in FY 2025. In tandem with our growth projections, the Company aims to bolster our rating outlook and optimize borrowing costs. By maintaining a proactive approach to financial management, the Company seeks to further solidify our financial standing and enhance investor confidence. Moreover, it is the Company’s strategic focus to diversifying investment avenues. To this effect, the Company aims to continue to exploring opportunities across different fixed-income securities and money market instruments, aligning our investment strategy with our overarching goal of maximizing returns while mitigating risks. Management Discussion & Analysis Annual Report 2023-24 | 48
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