Date: July 25, 2026

KMP / Board / Auditor Changes

Not Specified

Dividend Declaration or Non-Declaration

Not Specified

Board Meeting Outcomes

Not Specified

Financial Results (Standalone & Consolidated)

Not Specified

Disinvestment / Strategic Actions

Not Specified

Other Operational / Legal / Strategic Disclosures

Business Responsibility & Sustainability Report Disclosure

  • Filed under Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • Report covers financial year April 1, 2025 to March 31, 2026
  • Report available on company website: https://www.northernarc.com/annual-report

Corporate Details

  • Corporate Address: IITM Research Park, Taramani, Chennai, Tamil Nadu, India, 600113
  • Paid-up Capital: 161,57,18,750
  • Sustainability Contact: Mr. Shakeel Ahamed, Head - Sustainability (+91 87545 08977, sustainability@northernarc.com)
  • Reporting Boundary: Standalone basis

Operations & Market Presence

  • 91 offices across India (no international offices)
  • No export activities (entity is NBFC)
  • Customer segments: Rural/retail customers, MSMEs, Originator Partners, Emerging Corporates, Institutional Investors

Workforce Details (as of March 31, 2026)

  • Total Employees: 1,524 (Permanent: 1,126, Other than Permanent: 398)
  • Gender Distribution: Male: 1,270 (83.33%), Female: 254 (16.67%)
  • Differently Abled Employees: 1 permanent employee (male)
  • Board Gender Diversity: 33.33% female representation
  • Turnover Rates: Permanent employees - Male: 46.5%, Female: 51.80%

Subsidiaries & Associates

  • Northern Arc Investment Managers Private Limited (100% subsidiary)
  • Northern Arc Creclitech Solutions Private Limited (100% subsidiary)
  • Northern Arc Securities Private Limited (100% subsidiary)
  • Northern Arc Foundation (100% subsidiary)
  • Pragati Finserv Private Limited (90.10% subsidiary)
  • All subsidiaries participate in Business Responsibility initiatives

CSR Compliance

  • CSR applicable under Section 135 of Companies Act, 2013
  • Turnover: ₹26,43,83,23,000
  • Net Worth: ₹38,93,48,27,000

Material Responsible Business Conduct Issues

1. Responsible Lending & Client Engagement (Opportunity & Risk)

2. Transparent & Ethical Governance (Risk)

3. Prudent Enterprise Risk Management (Opportunity & Risk)

4. Easing Access Through Technology Innovation (Opportunity & Risk)

Policy Framework

  • Policies cover all 9 NGRBC Principles, approved by Board
  • Key policies: Human Rights Policy, Suppliers Code of Conduct, Employee Code of Conduct, Equal Opportunity Policy, Anti-Bribery and Anti-Corruption Policy, Fair Practices Code
  • All policies translated into procedures and extended to value chain partners

Sustainability Commitments & Targets

  • Green Buildings: All corporate offices in certified green buildings
  • ESG Capability Building: Annual role-specific ESG training
  • Data Privacy & Cybersecurity: Annual mandatory training completion
  • Ethics Training: Role-specific annual training
  • Sustainable Mobility: Launch program for electric/hybrid vehicles by FY26-27
  • Diversity & Inclusion: Increase women workforce from 17% to 22% and women in leadership from 11% to 15% by 2030
  • Climate Finance: Achieve ₹1,000 crore by 2030
  • Financial Inclusion: Minimum 15% YoY growth in outreach from FY26-27 through FY28-29
  • Women Entrepreneurship: Achieve financing of ₹4,000 crore to women-owned/led businesses by FY28-29
  • Rural Outreach: Expand to 15 additional underserved districts by FY28-29

Training & Awareness

  • Multiple training programs conducted covering SEBI regulations, environmental and social management, anti-bribery, code of conduct, work ethics, information security
  • 75.31% of permanent employees received human rights training
  • No fines/penalties paid in proceedings with regulators/law enforcement agencies

Employee Welfare

  • Retirement Benefits: PF (99.64% coverage), Gratuity (100% coverage), ESI (1.69% coverage), National Pension Scheme (3.29% coverage)
  • Workplace Accessibility: Offices accessible to differently abled employees as per Rights of Persons with Disabilities Act, 2016
  • Equal Opportunity Policy implemented
  • Return to work rate after parental leave: 100% for both male and female employees

Environmental Performance

  • Energy Consumption: 2099.34 units (all from non-renewable sources)
  • Energy Intensity: 0.007969 per rupee of turnover
  • Water Consumption: 12782.26 kilolitres
  • Water Intensity: 0.048522 per rupee of turnover
  • GHG Emissions: Scope 1 - 9.3569 metric tonnes CO2e, Scope 2 - 926.55 metric tonnes CO2e
  • Waste Generated: 0.313 metric tonnes (e-waste: 0.313, bio-medical: 0.084)
  • Waste Reused: 0.566 metric tonnes
  • Waste Disposed: 0.795 metric tonnes via Pollution Control Board-approved recyclers

CSR Activities

  • CSR Committee Composition: Ashutosh Pednekar (Chairperson), Ashish Mehrotra, Dr. Kshama Fernandes (until March 31, 2026), Michael Fernandes
  • Average Net Profit (3 years): FY2022-23: ₹3,16,40,91,964, FY2023-24: ₹3,74,40,94,072, FY2024-25: ₹4,38,18,37,735
  • CSR Obligation: ₹7,52,66,825 (2% of average net profit)
  • CSR Amount Spent: ₹7,52,66,825 (achieved 100% obligation)
  • CSR Projects: Support for differently abled children, palliative care services, medical/healthcare education, FoodHeals Program
  • Beneficiaries: 624 students in educational programs, 40 palliative care patients, 3,619 monthly ration beneficiaries

Grievance Mechanisms

  • Customer Grievance: Toll-free (1800 419 8766), email (gro@northernarc.com), escalation to Nodal Officer (1800 258 7010), RBI Ombudsman
  • Employee Grievance: Structured redressal mechanism with designated Liaison Officer
  • POSH Complaints: 1 complaint received in FY26, resolved within year
  • No complaints on discrimination, child labor, forced labor, wages, or other human rights issues