1. AJIVIKA FINANCE ANALYST MEET
Hard work. Discipline. Quality Output
Ajivika’s lending benefits women in 35 villages
JUNE 2018
AJIVIKA FINANCE LIMITED
(Formerly known as ‘Kohli & Kohli Financial Consultants Ltd’)
Corporate Identity No. U74120CH1986PLC006885
This presentation is solely for viewing. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from AJIVIKA FINANCE Limited.

2. CONTENTS Particulars Slide No. OPERATIONS 3
INFORMATION TECHNOLOGY & ORGANIZATION EXCELLENCE AND SERVICE QUALITY 8
INTERNAL AUDIT 12
RISK MANAGEMENT 14
HUMAN RESOURCES 16
MEDIUM TERM PLAN 18
CORE MANAGEMENT TEAM
Figures rounded off to the nearest digit across the presentation. Figures and ratios have been regrouped wherever necessary. 2

3. OPERATIONS 3

4. AJIVIKA FINANCE USES GRAMEEN MODEL TO PROVIDE MICRO ENTERPRISE LOANS AT THE DOORSTEP OF LOW INCOME HOUSEHOLDS
Survey a village
Recruit Members Conduct projection meetings
Lend only to women
Group of 10 at least
Lend only for income generating activities
Joint Liability
Weekly instalments
Primarily Non-Agri
Number of Households
Political situation and
Communal sensitivity
Road Accessibility
Activities in Village
Number of MFI Lenders
Deliver Doorstep service
Conduct Centre meetings at group leader’s place
Centre meetings conducted between 7
A.M to 12 P.M to avoid disturbance to work schedule
Provide Training
CGT* and GRT* are conducted
Group formation policy (avoid relatives and stay closely)
Financial literacy training on products, interest rates 4
*CGT: Compulsory Group Training, GRT: Group Recognition Test, Loans are given primarily for non-agri activities

5. OUR RELENTLESS FOCUS ON OPERATING MODEL IS THE KEY DIFFERENTIATOR
Parameter
Status
Women Customers
Group Lending - JLG
Loans for Income generating activities
Rural customer base
Loans for Non-agri activities
100%
99%
~60%
Grameen Operating Model
Geographic Focus
We are focused initially in states of UP, UK, PUNJAB, HARYANA
We remain rural focused (>50%) while Industry growth is skewed towards urban (60%)
Aiming for a 100% growth in number of borrowers
Growth Anatomy
Rural Focus
Robust Borrower growth
Rs 20,000 and Rs 30,000
 Loan Products 5.
3000 (projected to expand to 7,000 by the end of FY 18-19)
12 months
No. of districts
Extensive Reach*
No. of customers
Average Vintage of Branches
Efficiency*
Borrowers managed per Center Manager
600 ( Amongst Highest in Industry for Fortnightly model)
Return Generation
Interest rate
Interest rate of 30% 5
*As on 30th June 2018

6. PORTFOLIO GROWTH TRAJECTORY
Collection efficiency of 100%
INR LAKHS
Gross Loan Portfolio
3132
2609
2154
1685
1365
710
1020
468
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
Q2FY20
Q3FY20
Q4FY20
Gross Loan Portfolio is expected to cross 50 crores by FY 21
Pragmatic strategies ensure prompt repayment 6

7. BORROWER GROWTH TRAJECTORY
BORROWERS
18400
15400
12600
9900
7900
4100
5800
3000
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
Q2FY20
Q3FY20
Q4FY20
BRANCHES 3 5 6 8 9 12 16 20
STAFF 17 27 31 39 53 61 65 78
BRANCHES
STAFF 6

8. INFORMATION TECHNOLOGY & ORGANIZATION EXCELLENCE AND SERVICE QUALITY (OESQ)8

9. PROCESS AND TECHNOLOGY EVOLUTION
Secured database with state – of – the art protection and anti theft procedures
Platform ready to build solutions
on-demand
New systems (Cross- sell/Member Helpline)
Elastic Cloud infra
Millions of Transactions/day
Zero down time
Reporting timelines shrunk to hours
In-house built solution
Configurable workflows
Integration On-demand
Secured
Loads of features for productivity gains & Compliance adherence
Cashless disbursements
Equipped Loan Officers with Smart phones
Leveraged Connectivity and rolled out CRM and ERP solutions for efficiency gains.
Consortium of Network providers
Real-time data
Visibility for Operations and beginning productivity gains
Rolled out a robust & multi featured lending platform
System is accessible from any branch 9

10. OESQ: MINIMIZING RISK, MAXIMIZING CUSTOMER SATISFACTION AND EFFICIENCIES
Maximizing customer satisfaction through customer connect
Best in class grievance redressal center which services more than 2K inbound enquiries and service requests per month
Out bound program which connects clients for feedback and suggestions
Presence of Ombudsman who oversees the client protection framework
Maximizing Efficiencies
Speeding up GRT through technology and credit history analytics
Saving one man-day per week per person
Center meeting time reduction
Distance travel optimization through digital route mapping (first phase of roll out in 2 branches)
Reduction in travel time
Improvement in Center Manager time utilization
Minimizing risk
Cashless disbursement into Bank accounts
Extensive emphasis on verbal pledge
Meeting the maximum norms on KYC, data quality and credit bureau compliances
Operational safeguards
Supervisory monitoring being tracked centrally
Checkers in branch ensuring 100% KYC compliance
Pilot initiatives
Currently piloting Aadhaar :
To identify the client using biometrics
Instant loan approval
Further reduces center meeting time by 10 minute, Center Manager can handle one additional center per day
High quality KYC data for Credit Bureau enquiries
Resultant customer delight on instant approval and possibility of same day credit into bank account 10

11. SETTING BENCHMARKS ON KYC AND CREDIT BUREAU COMPLIANCES
Robust KYC norms
All enquiries are with either Voter ID or with Aadhaar which are two most reliable IDs for this segment
100% loan clients have either Aadhaar (82%) or Voter ID (81%), 64% clients have both
Setting benchmarks in credit compliance
Consider all lenders (incl. Banks BC portfolio, NBFCs, MFIs) for the 2 MFI criteria
100% bureau enquiries sent with 2 IDs: First in the industry (started in Oct’14)
Weekly submission to all 4 bureaus (Equifax, Highmark, CIBIL, Experian)

12. INTERNAL AUDIT

13. INTERNAL AUDIT PLAYS A CRITICAL ROLE IN ASSESSING PROCESS CONTROLS
All branches are inspected monthly based on a 4 tier grading system
Grading linked to incentives/appraisals of field staff
Special audits viz. headcount, fixed assets verification, 100% document check etc.
Strengths
Governance model
Independent function
Reports to the Audit Committee of the Board of Directors
Head Office audit by SGR & Associates
Scope of Audit
Audit area
Frequency
Client Acqui sition
Center Meeting Proces s
Document verification (KYC, Loan utilization check etc.)
Monitoring process by supervisor s
Adheren ce to Process
/ Policies
Statutory Requirement s
(Credit bureau, Fair practices etc.)
Client Visits *
High Risk items (Fraud s etc.)
Fixed Assets verific ation^
Branches
Monthly √
Regional Offices
Once in a quarter, distributed monthly -
Head office
Quarterly
Note:
* Approximately 30% of the clients are covered by Internal Audit in an year during the branch audits. Clients visited on a sample basis to check for Loan confirmations, Loan utilization (LUC) , arrears and awareness on Client Protection Principles (CPP)
^ Fixed Assets are verified on Annual basis

14. RISK MANAGEMENT

15. KEY RISKS AND MANAGEMENT STRATEGIES MANAGEMENT STRATEGIES
Geographic Risk
Portfolio Diversification
Financial Risk
Cashless Disbursement
Asymmetric Information
Group Lending & Joint Liability
Moral Hazard
Verbal Pledge
Credit Risk
Regular meetings and follow ups with borrowers and tracking loan utilization
Information & Technology risk
Remote Back-Up Facility and Strong Servers in place
Fraud (Integrity) Risk
Rigid KYC norms, and regular house-visits

16. HUMAN RESOURCES 16

17. EXPERIENCED TEAM AND STRONG WORK ENVIRONMENT
Senior management - Avg. Experience 20+ Years
Middle management - Avg. Experience 8+ Years
Branch management - Avg. Experience 6+ Years
Center Manager – Avg Experience 3+ Years
Strong & Experienced team helps sustain and scale
Talent Attraction strategy:
Best In class
Total Value Proposition
Competitive fixed salary, coupled with attractive incentive scheme and
top of the industry employee benefits
Job with personal growth and customer impact
Highly respectable and responsible job for a 20 years old youth, making tangible impact on our customer.
Training and retention strategy:
A dedicated training team of 3 trainers
Motivational speeches and seminars for entry level trainees
96% of the training investment is done on the field staff
Extensive process and product training
Retention Strategy
High growth career path coupled with significant increase in ‘Employability’ 17

18. CORE MANAGEMENT TEAM

19. CORE MANAGEMENT TEAM
Mr. Yashwardhan Sahai, Chief Managing Director
Mr. Sahai graduated from IIT Kharagpur and holds post graduate degree from IIM Bangalore. His expertise lies in managing operations in a large business environment, formulating business strategies and identifying new markets.
He started his career in 1987 as a Senior Management Trainee with CEAT Ltd, the flagship tyre Manufacturer. He became the youngest Product Manager. Later he worked at Honda Power and BPL in senior positions. Post 2000 he largely worked in the Telecom industry with Market Leaders Airtel, Essar and Bharti Infratel. In 2014 he joined the erstwhile American Tower Company in Senior Management Position and in early 2016 founded a Company Blue Run Investment Consultants pvt Ltd.
He is currently holding the position of Chairman and Managing Director at Ajivika Finance.

20. Mr. Anuj Kumar, Executive Director
CORE MANAGEMENT TEAM
Mr. Anuj Kumar, Executive Director
Anuj Kumar graduated from Bangalore University with degree in Engineering. He is an E- business application development professional. He is having a long career of 18 Yrs. in financial industry. He is one of the key members who have been instrumental in establishing Micro Finance operation in North India. He carries more than 18 years of experience in establishing and running Micro Finance and MSME Finance Institutions. Amongst the diverse experiences, his expertise lies in building huge businesses from scratch, managing large teams, key relationship management and handling all the dimensions of the business.
He was the IT head of Capital Trust Limited, a BSE listed NBFC engaged in the business of MSME financing. He was among the key members of Capital Trust limited who took the company to level of 500 Cr at the time of leaving the company in year He developed the platform for the company from scratch. Company still uses the same IT platform for their business. He is an Executive Director spear heading IT and Technology at Ajivika Finance

21. CORE MANAGEMENT TEAM Mr. Kamal Kant Dang, CEO
Mr. Kamal Kant Dang is a post graduate (M.Com) and has a large experience in starting new ventures.
He started his career as Founder of a finance company Vishal Financiers and ran it over 10 years in the automobile finance sector. 
He is also associated in different businesses related to education industry. He has also ran Computer education centers in various places in western UP including Hapur, Moradabad and Barreilly.
He started a Business School in Noida in the name of Hierank Business school in Hierank is one the leading business schools offering BBA and MBA degrees in Delhi NCR for over a decade. His contribution in establishing Hierank includes completion of building from scratch, before target time and establishing awareness of the college in the neighboring states. He continues his financing activities by providing corporate debts to leading colleges, Builders, Merchants in western UP. He is currently holding the position of CEO at Ajivika Finance.

22. Experience Highlights Educational Qualifications
Senior Executives
Name and Designation
Experience Highlights
Educational Qualifications
Aditya Sahai
Chief Financial Officer
Experience in Business Planning, Fund raising, including Structured Finance & Equity, Risk Management, Accounts and Audit
Former Director at Blue Run Investment Consultants .
B.A. Economics
(SRCC)
Vishal Dang
Chief Operational Officer
Experience in operational excellence and team driven efficiency
Experience of 5 years with major Consultancy firms
MBA

23. THANK YOU
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