WHAT WE CHANGE
Ananya is an impact lender investing in every possible opportunity that contributes to the equitable socio-economic development of the underbanked and unbanked population from underserved areas of the country, especially women. Hence, our efforts in social performance management are not an attempt to only report our impact. Instead, it is a practice for the organization to improve its internal capacity and processes for all-around sustainable development. Ananya is one of the few NBFI in India whose 100% portfolio is in the impact space. In order to understand every aspect of our social performance and impact on our stakeholders, we incorporate multiple tools and methodologies for assessment and management.
DIMENSION 2: Commitment to Social Goals
CERISE SPI4 AUDIT 2021-22
Ananya started its SPM assessment and monitoring journey with SPI4 audit organized by Cerise, France. The audit entailed a process evaluation to understand social effectiveness and efficiency of Ananya towards its stakeholders. The audit was conducted by Cerise qualified internal and external auditors. A total of 10 MFI partners participated in the audit process. The results from the SPI4 audit are as follows:
DIMENSION WISE SCORES
DIMENSION 1: Define and Monitor Social Goals
DIMENSION 4: Treat Clients Responsibly
DIMENSION 5: Treat Employees Responsibly
DIMENSION 6: Balanced Social and Financial Perfromance
AUDITED BY CERISE QUALIFIED SPI4 AUDITORS
PARTICIPATING PARTNER MFIs
The Spi4 audit enabled us to take a deeper look at the existing systems and processes from an impact perspective. The audit has helped us establish a benchmark for improving and sustaining an industry relevant social performance.
DIMENSION 3: Design Products that meets Client's Needs
Cerise Qualified SPI4 External Auditor
Cerise Qualified SPI4 External Auditor
Cerise Qualified SPI4 Internal Auditor
DIMENSION 2: Commitment to Social Goals
CORPORATE SOCIAL RESPONSIBILITY
We, at Ananya Finance, have always been cognisant of our responsibilities as a corporate citizen. This reflects in our choice of sectors that we serve through our financial products and services – microfinance, agriculture and impact MSMEs. We believe that integrating social, environmental and ethical responsibilities into the governance of businesses ensures long term success, competitiveness and sustainability.
While contemplating the activity for CSR, we wanted to choose an activity that we could work on year-after-year. This would not only ensure that we gain expertise in the activity but would also ensure sustainability of our interventions. We chose to work in the area of nurturing women entrepreneurship.
In the FY 2019-20, Ananya undertook its first-ever CSR activity mandated by the regulation. The details of which are as follows:
Nurturing Women Entrepreneurs through Training and Skill Development
2019-20: Under the project, FWWB reached out to 200 women from marginalized communities in the districts of Anand and Kheda in Gujarat. After undertaking livelihood scoping study to understand the demand and supply of various livelihood activities, FWWB focused on select few livelihood activities. Local resource persons were trained as master trainers to ensure longer hand holding support. The shortlisted women were imparted training on financial literacy, financial planning, business planning, livelihood skills etc. These trainings have helped the participants with necessary knowledge and skills to start their entrepreneurial journeys.
2020-21: The project targeted women between the age group of 18-45 who are socio-economically disadvantaged from low-income households in rural and semi-urban areas and it reached out to 135 such beneficiaries including women in urban, semi urban and rural areas that are engaged in livelihood activities in the district of Gandhinagar in Gujarat. The project aimed at nurturing women entrepreneurship by enhancing their business and livelihood skills.
CSR IN NUMBERS
INR Spent on CSR
The CSR Committee of Ananya is headed by reverent Mr. Sanjay Gandhi from Gojo and Co. and Ms. Tara Nair from Gujarat Institute of Development and Research. The committee entails activities and discussions focused on investing Ananya's CSR funds on sustainable socio-economic development projects identified in the distressed areas of India. The committee is also responsible for forming, implementing and monitoring CSR policy of Ananya as per the provisions of Section 135 of the Companies Act, 2013 (‘the Act’) read with The Companies (Corporate Social Responsibility Policy) Rules, 2014.
Friends of WWB, India (FWWB) has collaborated with Ananya Finance for Inclusive Growth Pvt Ltd. to provide capacity building support for Livelihood Enhancement of Women members/groups aimed at achieving greater financial inclusion for the women members, increase their wealth management and independence by empowering them in their micro business activities to make it more sustainable. FWWB aims to fill this skills and knowledge gap through its Women Entrepreneurship Support Program, empowering women to run sustainable enterprises that can enhance the well-being of their households. The objective is to expand its outreach to women-led micro-enterprises by providing skill building training, hand-holding support and facilitate building linkages for financial assistance to make their enterprise sustainable.
Ananya's core philosophy is lessening poverty levels of the country. We do the same by ensuring accessible and feasible financial services to the unbanked and underserved section of the society. Ananya is providing training and skill building support along with credit support to people who lack any source of income to aid them in starting their own income-generating activity. The support is extended across 385 districts in India catering to the largest population of people at the bottom of the pyramid. A significant percent of the support is extended to people living in the most backward regions of India.
INR Disbursed for SDG 1
Ananya extends loans to FPOs that helps in increasing income of their smallholder farmer members and provides incentives to continue working in the sector. FPOs also work with farmers to promote sustainable agriculture and increase productivity. Ananya finances the adoption of cultivating the organic and non-pesticide management crops. We provide credit and training support for income-generating activities to individuals for economic enterprise creation and to enterprises that create livelihoods/increase income and reduces hunger levels in India. Ananya's commitment towards reducing hunger is focused primarily on financing FPOs and agriculture related ventures.
INR Disbursed for SDG 1
Ananya extends micro-loans to women borrowers that empowers them to start and sustain their economic enterprises. Ananya has committed in its shareholder's agreement to have a minimum of 80% of its exposure to women borrowers at all points of time. Moreover, the objective of our capacity building programmes revolves around women empowerment in diverse fields. We firmly believe that our programmes and financial services enable women to proactively participate in diverse economic activities. We ensure that our partners in the financial sector have mutual interest in terms of gender equality and women empowerment.
INR Disbursed for SDG 1
Social enterprises are an emerging theme to combat socio-economic inequalities while protecting environment and promoting economic growth. However, these impact SMEs are not properly funded to meet their requirements. Ananya recognizes the efforts of these impact enterprises. We have created exclusive financial services to cater to the needs of the impact SMEs and green enterprises. We also engage in programmes where we enable sustainable landscape portfolios to enable impact SMEs with accessible and conducive financial services. We aspire to become a proactive green investor with a decent slice of our portfolio by 2025.
INR Disbursed for SDG 7
Ananya extends loans only to the people at the bottom of the economic pyramid for income-generation activities. Our loans aid in improving income levels of the underserved population and thus promote inclusive socio-economic growth. Ananya also extends loans to enterprises that represents rural and semi-urban areas. Our organisation provides skills and entrepreneurship training to women at the bottom of the economic pyramid in some of the poorest districts of India. All our products and services are targeted towards economic prosperity of the underprivileged. We ensure that our partner MFI institutions with whom conduct business have the same mutual interest and aspirations.
INR Disbursed for SDG 8
Ananya's efforts in providing targeted credit to financially challenged households are aimed at reducing the inequalities on economic fronts. Our portfolio with a dual focus on women and underserved households encompasses elements of overall economic upliftment of the poor and lower income group people. Moreover, we continuously track and restructure our portfolio to ensure that our lending efforts impacts a wider borrowers base in a balanced manner.
INR Disbursed for SDG 10
PARTNERSHIPS AND PROGRAMS
Ananya is amongst the few impact lenders in India that offers capacity building and technical support to its partner institutions along with financial services. We have been involved in various capacity building programmes as implementation agency and technical partner. Our role in these programmes focusses on enhancing the economic prospects of various underprivileged and underserved communities. We aim to empower institutions and communities in building financial capabilities for resilient livelihoods and socio-economic development. Being a proactive impact lender, we firmly believe that our technical capacity building efforts make these communities more receptive to financial services enabling them with enhanced economic productivity. Our capacity building initiatives can be found here.
JOHAR is a project started by The World Bank along with the Jharkhand State Livelihood Promotion Society (JSLPS) in 2017 in 68 blocks of 17 districts of Jharkhand, India. The development objective of the project is to enhance and diversify household income in selected farm and non‐farm sectors for targeted beneficiaries in rural areas. The project intended to conclude in December, 2021 witnessed Ananya’s engagement as one of the Technical Support Agencies for enhancing creditworthiness of the Producer Groups (PGs) and Producer Companies (PCs) by way of imparting trainings, streamlining book keeping, helping adherence to regulatory compliance & supporting financial reporting & analysis.
The project has emerged as a pioneer in enabling tribal communities to be an integral stakeholder in development by ensuring availability, accessibility and utilization of natural resources for agricultural development. JOHAR supports 200,000+ small and marginal farmers in primarily rainfed, backward, drought prone, upland and tribal areas of Jharkhand. The project fosters community ownership from the onset of project conception, to survey and implementation, right through to operations and maintenance. Ananya’s role in JOHAR has enabled conducive financial possibilities for the FPCs and PGs to engage in data driven decision making and
JOHAR (Jharkhand Opportunities for Harnessing Rural Growth)
Producer Groups Impacted
Skill and Enterprise Development Project
Skill and Enterprise Development Project (SEDP) was a programme run by Ananya in collaboration with SIDBI and Department for International Development (DFID). The programme focused on capacity building of 12 smaller MFIs in the areas of Internal controls, HR systems, and Governance. Additionally, SEDP programme also reached out to 2,00,000 women to enhance the financial literacy of women micro-borrowers through mobile based IVR. In the programme we imparted entrepreneurship training to 5,239 women and skill training to 4,289 women. The women trained have been able to start their enterprises and contribute to household income. We facilitated partnership with 7 MFI partners to create a team of 45 Master Trainers who conducted the skill and enterprise development training for women borrowers. The programme was carried out in the most backward districts of India.
Capacity building Program for FPCs
Ananya conducted a capacity building programme in collaboration with International Finance Corporation. In the programme, we provided training to Farmer Producer Companies (FPCs) in governance, financial management, book keeping, risk management, insurance covering. The capacity building programme entailed an impact on 53 FPCs, 7 Resource Institutions (RIs) and 366 participants (Farmers Directors, staffs, VRPs) who participated in the same. After the programme, 12 FPCs were appointed Micro Insurance Agents. Moreover, 2000 micro-insurance policies issued to help poor households tide over financial shocks.
USAID- Rabobank Foundation Project
In collaboration with USAID and Rabobank foundation, Ananya commenced a project to offer financial services for environment driven ventures. In the project, we were able to create Loan Portfolio Guarantee support, to the extent of 51%, on the loans which have positive impact on forestry and sustainable landscapes. Moreover, we were successful in facilitating the prospects of having agro-forestry and sustainable landscapes portfolio aggregating to USD 3 million. In the project, we offered financial services of Rs. 4.9 Crores to 3 green and impact enterprises.
Loans Sanctioned Positively Impacted Forestry
Sustainable Landscape Portfolio Created
INR 22 Cr
Loan Disbursed to 3 Enterprises
INR 5 Cr.
Women Micro-Borrowers Reached
Women Equipped with Skill Development
Women Trained in Entrepreneurship