AROHAN FINANCIAL SERVICES LIMITED is an NBFC-MFI (Non-Banking Finance Company) operating mainly in financially under-penetrated and low-income states of India. The company provides financing opportunities to people who are generally neglected by traditional banks and financial institutions. The company mainly targets women having annual household incomes less than or equal to Rs. 2,00,000 in urban areas and Rs. 1,25,000 in non-urban areas. On the basis of its Gross Loan Portfolio, Arohan Financial Services Limited is the 5th largest NBFC-MFI in India.
Arohan Financial Services Limited classifies its products into two broad categories, Credit products, and Insurance Products. Credit products include income-generating loans and different loan products for various purposes. Insurance products of the company include life insurance and health insurance which are issued and underwritten by different Indian insurance companies. The company is also engaged in providing term loans to microfinance institutions.
Arohan Financial Services Limited has 737 branches in total spread across 229 Districts in 11 States of India. The company’s MSME lending business is operated from 10 branches in 8 states of India.
Arohan Financial Outstanding Shares: |
120,701,255 |
Face Value of Arohan Financial Unlisted Share: |
Rs. 10 Per Equity Share |
ISIN of Arohan Financial Unlisted Share: |
INE808K01017 |
Lot Size of Arohan Financial Unlisted Share: |
100 Shares |
Arohan Financial Share Price: |
Best in Industry |
PAN Number of Arohan Financial: |
AAECA6121D |
Arohan Financial Services CIN Number |
U74140WB1991PLC053189 |
Arohan Financial Services Registration Date |
27-Sep-91 |
Category / Sub-Category of Arohan Financial |
NBFC - MFI |
Arohan Financial Services Limited Registered Office Address |
PTI Building, DP Block, DP-9, 4th Floor, Sector - V, Salt Lake, Kolkata - 700091. |
Arohan Financial Services Registrar & Transfer Agent Address and Contact Details |
Link InTime India Private Limited C 101, 247 Park, 1st Floor L.B.S., Marg, Vikhroli West, Mumbai - 400083 |
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
|
Name and Description of main products/services |
NIC Code of the product/service |
% to total turnover of the Company |
|
NBFC- MFI |
64990 |
100% |
BOARD OF DIRECTORS
Mr. Dinesh Kumar Mittal (Chairman, Non-executive, Independent Director)
Mr. Rajat Mohan Nag (Non-executive, Independent Director)
Mr. Sumantra Banerjee (Non-executive, Independent Director)
Ms. Matangi Gowrishankar (Non-executive, Independent Director)
Mr. Vineet Chandra Rai (Promoter Director)
Mr. Anurag Agrawal (Promoter Director)
Mr. Piyush Goenka (Investor, Nominee Director)
Mr. Wilhelmus Marthinus Maria Van Der Beek (Investor, Nominee Director)
Mr. Shri Ram Meena (Lender, Nominee Director)
Mr. Kasper Svarrer (Investor, Nominee Director)
Mr. Paul Gratien Robine (Investor, Nominee Director)
Mr. Manoj Kumar Narayan Nambiar (Managing Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
AROHAN FINANCIAL SERVICES LIMITED does not have any subsidiary or associate company.
AROHAN FINANCIAL SERVICES LIMITEDUNLISTED SHARE DETAILS
|
Total Available Shares: |
12,01,77,303 |
|
Face Value: |
Rs. 10 Per Equity Share |
|
ISIN: |
INE808K01017 |
|
Lot Size: |
100 |
|
Current Unlisted Share Price: |
Best in Industry Per Equity share |
SHAREHOLDING PATTERN
(As on 31-03-2021)
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Aavishkaar Venture Management Services Private Limited |
2,47,63,774 |
20.61% |
|
2 |
Intellectual Capital Advisory Services Private Limited |
1,64,72,146 |
13.71% |
|
3 |
Public Shareholding |
7,89,41,383 |
65.69% |
|
|
Total |
12,01,77,303 |
100.00% |
INDUSTRY OUTLOOK
The FY 2020 has been one of the most eventful and challenging years that the financial services industry has experienced. Even more, so is the case with microfinance with its spread of customers residing in areas most vulnerable to macro environment challenges with natural and political unrests alike. The Outbreak of the COVID 19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian Financial markets and a slowdown in economic activities. Since the duration and magnitude of COVID 19 are still uncertain, it will affect the plans of this industry for FY 2021.
In FY 2020, the microfinance industry grew by 29% year on year from Rs. 1,79,314 Crore to Rs. 2,31,788 Crore serving 10.54 Crore micro-loan accounts through a network of 170 financial institutions, spanning Banks, Small Finance Banks, NBFCs, NBFC-MFIs, etc. Banks contribute 40% of the total Microfinance portfolio, closely followed by NBFC-MFIs with a contribution of 32% and SFBs with a contribution of 17%. In FY 2020, the Eastern and North-Eastern parts of the country contributed to the largest portion of the overall microfinance portfolio of the country at 40% market share, followed by Southern India at 27%.
With technology penetrating the industry, the microfinance industries are expanding their services in innovative ways. The microfinance industry has huge potential in India. At the pan India level, micro-credit reached not more than 20% of total deserving households through a variety of channels including Banks, small finance banks, and microfinance institutes.
The threat of industry includes a high level of competition. As Small finance banks mainly focusing on this segment, and nowadays commercial banks are also showing active interest in the microcredit industry, the competition has become very intense. Moreover, there are lots of players present in the microfinance landscape and mature models of micro lending, with a significant portion of its population in the low-income band, India represents a huge opportunity for the microfinance sector.
According to ICRA, Micro Finance Industry might face asset quality pressure in the near term due to recent lockdowns in 2021. However majority of Micro Finance Institutions will be able to withstand any stress due to their improving collection efficiency and better liquidity management.
PROFIT & LOSS STATEMENT OF AROHAN FINANCIAL SERVICES LIMITED (In Rs. Lakhs)
|
PARTICULARS |
2021 |
2020 |
2019 |
2018 |
|
Total Revenue from Operations |
98,619.21 |
92,566.16 |
65,251.04 |
32,168.94 |
|
EBITDA |
22,939.55 |
54,377.62 |
43,446.25 |
16,671.29 |
|
EBITDA margin |
23.26% |
58.74% |
66.58% |
51.82% |
|
Finance Cost |
46,798.67 |
38,220.08 |
25,478.45 |
12,357.44 |
|
Depreciation |
668.52 |
669.61 |
527.25 |
304.84 |
|
Other Income |
2,748.31 |
1,270.61 |
273.12 |
532.82 |
|
Profit Before Tax |
-21,779.33 |
16,758.54 |
17,713.67 |
4,541.83 |
|
Total Tax |
-5,784.39 |
4,078.49 |
4,949.64 |
1,575.21 |
|
Profit After Tax (PAT) |
-15,994.94 |
12,680.05 |
12,764.03 |
2,966.62 |
|
EPS |
-14.56 |
12.07 |
14.05 |
3.35 |
BALANCE SHEET OF AROHAN FINANCIAL SERVICES LIMITED (In Rs. Lakhs)
|
PARTICULARS |
31st March 2021 |
31st March 2020 |
31st March 2019 |
|
ASSETS |
|||
|
FINANCIAL ASSETS |
|||
|
Cash and Cash Equivalents |
1,35,051.17 |
84,023.90 |
26,219.33 |
|
Trade Receivables |
113.67 |
532.01 |
566.33 |
|
Loans |
3,92,590.53 |
4,34,719.10 |
3,51,521.64 |
|
Investments |
0.00 |
0 |
3.32 |
|
Other financial assets |
1,051.46 |
2,122.62 |
3,613.17 |
|
TOTAL FINANCIAL ASSETS |
5,28,806.83 |
5,21,397.63 |
3,81,923.79 |
|
NON FINANCIAL ASSETS |
|||
|
Tax assets |
16,532.70 |
3,894.06 |
688.61 |
|
Tangible assets |
1,009.04 |
1389.36 |
1246.73 |
|
Intangible assets |
438.01 |
543.62 |
575.66 |
|
Other non-financial assets |
1,332.10 |
813.05 |
874.82 |
|
TOTAL NON FINANCIAL ASSETS |
19,311.85 |
6,640.09 |
3,385.82 |
|
TOTAL ASSETS |
5,48,118.68 |
5,28,037.72 |
3,85,309.61 |
|
EQUITY AND LIABILITIES |
|||
|
EQUITY |
|||
|
Equity Share capital |
12,017.73 |
11,032.10 |
10,267.39 |
|
Other Equity |
83,845.8 |
85,230.94 |
59,448.21 |
|
TOTAL EQUITY |
95,863.53 |
96,263.04 |
69,715.60 |
|
LIABILITIES |
|||
|
FINANCIAL LIABILITIES |
|||
|
Debt securities |
1,00,735.92 |
0 |
6245.89 |
|
Borrowings (Other than debt) |
3,19,775.64 |
3,98,340.94 |
2,77,587.83 |
|
Subordinated liabilities |
21,008.31 |
20,970.29 |
18,515.22 |
|
Other financial liabilities |
6,701.39 |
8,992.46 |
10,426.52 |
|
TOTAL FINANCIAL LIABILITIES |
4,48,221.26 |
4,28,303.69 |
3,12,775.46 |
|
NON FINANCIAL LIABILITIES |
|||
|
Provisions |
1,788.51 |
1,422.95 |
523.69 |
|
Other non-financial liabilities |
2,245.38 |
2,048.04 |
2,294.86 |
|
TOTAL NON FINANCIAL LIABILITIES |
4,033.89 |
3,470.99 |
2,818.55 |
|
TOTAL LIABILITIES |
4,52,255.15 |
4,31,774.68 |
3,15,594.01 |
|
TOTAL EQUITY AND LIABILITIES |
5,48,118.68 |
5,28,037.72 |
3,85,309.61 |
DIVIDEND HISTORY
|
Particulars |
2021 |
2020 |
2019 |
2018 |
|
Dividend (final + interim) (In Rs.) |
Nil |
Nil |
Nil |
Nil |
|
Retained Earnings (Consolidated) (In Rs. Lakhs) |
10,831.32 |
26,950.60 |
17,237.68 |
6,790.67 |
PERFORMANCE OF THE COMPANY
The overall AUM of the company as of 31st March 2021 was Rs. 4,64,800 Lakhs.
In FY 2021, the Company has preferentially allotted 18,50,000 Equity Shares to Arohan ESOP Trust, 55,30,329 Equity Shares to ASK Financial Holding Private Limited, 4,76,190 Equity Shares to Kiran Vyapar Limited, 9,52,380 Equity Shares to Aavishkaar Venture Management Services Private Limited, and 10,47,430 Equity Shares to Mr. Rajesh Sachdeva on a private placement basis.
Interest Income of the company increased by 9.79% from Rs. 86,146.25 lakhs in FY 2020 to Rs. 94,582.42 lakhs in FY 2021.
EBITDA of the company decreased by 57.81% from Rs. 54,377.62 lakhs in FY 2020 to Rs. 22,939.55 lakhs in FY 2021. EBITDA margins of the company fell from 58.74% in FY 2020 to 23.26% in FY 2021.
Profit after Tax of the company slightly turned from a profit of Rs. 12,680.05 lakhs in FY 2020 to a loss of Rs. 15,994.94 lakhs in FY 2021.
The Capital Adequacy Ratio was well within the limit as specified by the RBI and was 24.27% in FY 2021.
The net NPA of the company as of 31st March 2020 was 3.96%.
The debt to Equity ratio of the company as of 31st March 2020 was 4.61.
Arohan Financial Services Limited has not given dividends for the past four years.
The book value of the company as of 31st March 2021 was Rs. 79.76.
