Arohan Financial Annual Reports, Balance Sheet and Financials

Here is the summary of cash flow statement for the FY 2024 and 2023:

Cash Flows from Operating Activities
The cash flow from operating activities reflects the company’s core business performance. During the year ended 31 March 2024, the company generated an operating profit before working capital changes of ₹66,972.43 lakhs, a significant increase compared to ₹26,660.22 lakhs in the previous year. This improvement is primarily attributed to higher profitability before tax and adjustments such as impairment loss allowance, depreciation, and effective interest rate adjustments. However, working capital changes, including a substantial increase in loans disbursed (₹1,97,257.15 lakhs), partially offset the operating profit. Other working capital adjustments, such as trade receivables and other financial assets, contributed to cash inflows. The net cash used in operating activities amounted to ₹1,22,979.89 lakhs for the year ended 31 March 2024, compared to ₹92,317.98 lakhs in the previous year. The outflow highlights the company 's focus on expanding its loan portfolio and business operations.

Cash Flows from Investing Activities
Investing activities during the year primarily consisted of movements in investments, purchases of property, plant, and equipment, and changes in fixed deposits. The company invested ₹5,257.18 lakhs in new investments, while proceeds from fixed deposits contributed ₹4,935.02 lakhs. Additionally, the company spent ₹479.02 lakhs on the purchase of property, plant, and equipment and ₹286.23 lakhs on intangible assets. As a result, net cash used in investing activities for the year stood at ₹1,118.43 lakhs compared to ₹10,681.67 lakhs in the previous year, indicating reduced capital outflows.

Cash Flows from Financing Activities
Financing activities highlight the company’s funding strategy to support its business growth. The company raised substantial proceeds from borrowings (₹9,14,425.52 lakhs) and from the issuance of compulsorily convertible preference shares (₹26,621.19 lakhs), which contributed significantly to cash inflows. Debt repayments, including repayments of borrowings (₹7,86,139.12 lakhs) and subordinated liabilities (₹2,500.00 lakhs), partially offset the cash inflow. Proceeds from debt securities amounted to ₹20,538.02 lakhs, while repayments stood at ₹9,870.00 lakhs. Net cash generated from financing activities for the year ended 31 March 2024 amounted to ₹1,62,338.31 lakhs, a significant increase compared to ₹63,292.79 lakhs in the previous year.

Net Increase in Cash and Cash Equivalents
The combined effect of operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of ₹38,239.99 lakhs for the year ended 31 March 2024, compared to a net decrease of ₹39,706.86 lakhs in the previous year. This improvement reflects robust financing inflows that successfully offset operating and investing cash outflows.

Cash and Cash Equivalents at the Beginning and End of the Year
The cash and cash equivalents at the beginning of the year were ₹55,656.06 lakhs, which increased to ₹93,896.05 lakhs by the end of 31 March 2024. This includes cash on hand and balances held with banks and deposits.