Sanchetna Financial Services Pvt. Ltd. March 2011 This Document is CONFIDENTIAL and its circulation and use are RESTRICTED

Management of Sanchetna is run by young professionals and yet very experienced and qualified individuals with over 31 years of combined relevant management experience. The mandate of the organization is to reach the poor unbanked clients in some of the poorer states of India. The organisation has so far reached out to over 8000 families in 5 districts of Central Uttar Pradesh. Currently, it provides micro-credit services bundled with loan cover insurance. In the very first year of its operations, it was rated  by M-CRIL. A year later (in 2010), it was upgraded to  +. Key Parameters as on 28 th Feb 2011 ParticularsDetail Date of formation8 th June 2008 Areas of OperationUttar Pradesh Portfolio outstandingINR 45.7 Million No. of Members8075 No. of Active Borrowers6611 Number of branches7 No. of Loan Officers20 Portfolio At Risk > 30 days (%)0.3%

MISSION STATEMENT “To increase the productive capacity of the underserved people by providing sustainable financial and market led business services, in a socially responsible manner” VISION STATEMENT “To be the most preferred MFI to the stakeholders by reaching One lakh clients by the year 2015”

Starting with micro support enabling entrepreneurs to think big: Sanchetna starts with micro loan so as to build capacities of rural populace After two-three loan cycles these micro entrepreneurs will either graduate with support from Sanchetna Or will get absorbed by Medium Size entrepreneurs

Lokesh Kumar Singh- Managing Director: Around 7 years of professional experience in different fields. Led operational expansion at SKS Microfinance Pvt. Ltd. (India’s largest NBFC-MFI) between 2004 and 2007 in 12 states including UP, MP, Rajasthan & Bihar Built and managed a loan portfolio of over Rs. 200 crores with 100% repayment rate Recruited and managed over 1200 staff from field assistants to senior management MBAs Postgraduate Diploma in Rural Management from IRMA, Nagendra Singh Rajawat – Manager Finance & Accounts: Around 7 years of professional experience At HDFC Bank, handled clients of the Microfinance division of the bank in the Eastern India, including Bandhan, Arohan, Village Financial Services, RGVN (Rashtriya Gramin Vikas Nidhi) etc. Successfully exited from many unprofitable and defaulter clients. Later, looked after the Risk Management function for the Microfinance division of the Bank Started & consolidated microfinance operations for SKS Microfinance Pvt Ltd in the state of Rajasthan Postgraduate Diploma in Rural Management from IRMA, Senior Management : All senior staff (in all departments) have Field level microfinance experience in various geographies i.e. AP, MP, Jharkhand, Maharashtra, Odisha, Rajasthan, UP etc. Are professionally qualified; and are Equity-holders in the company

Biswanath Swain – Manager Operations: 8 years of experience in microfinance operations in various geographies Worked as City Manager with Nirmaan Bharati (NB) from Nov ‘06 to June ’08. Set up NB’s Varanasi operations acquiring 11,000 members, managing a loan portfolio of Rs. 8 crores & recruiting over 40 staff Worked with Adhikar Microfinance since inception in 2003 to 2006; As Area Manager at Adhikar, helped acquire over 15,000 clients with loan portfolio of Rs. 2 crores & 99.9% repayment rate Niraj Pareek – Manager Human Resources: Around 4 years of professional experience in different fields. As HR Analyst at Accenture India in Bangalore, recruited for over 150 different IT skill sets. Was Area Manager at Nirmaan Bharati and looked after Varanasi and Dehra Dun operations. Post Graduate in HR from XLRI – Accenture HR Academy, Deepak Kumar Nay ak– Executive Internal Audit: Over 5+ years of microfinance experience Worked with various MFIs such as Adhikar, Biswa and Chaitanya Worked in various functions such as Internal Audit, Operations, Finance and HR Was responsible for managing the operations at Chaitanya in his last assignment PG in NGO Management from EDII, Ahmedabad

Prabal K Sen, Professor-Economics, XLRI: Prof. Prabal Sen has served as a senior public sector banker for over two decades. He has offered consultancy services, among others, to the Ministry of Rural Development, Government of India & SIDBI Foundation for Micro Credit. Also taught at Burdwan University & IRMA (Institute of Rural Management, Anand). Rajesh K Aithal, Associate Professor-Rural Marketing, IIM Lucknow: Rajesh is Fellow-IRMA. Rajesh has close to a decade of professional experience, in which three years are in sales and distribution and the remaining in teaching. Sachi Shenoy, Innovations Manager, Co-founder, Upaya Social Ventures: Sachi holds a B.A. in Economics and an M.B.A. in Finance and Entrepreneurship from the University of Chicago. Sachi has also worked at New York-based CDVCA, JP Morgan Chase, and Price Waterhouse LLP. Also worked as Innovations Manager at Unitus for about 4 years.

Manoj Sharma, Deputy Program Director, MicroSave India - A development finance and SME specialist with more than 15 years of experience. Coordinates MicroSave’s India operations. During his time at SIDBI, Manoj was part of the SME financing team which negotiated a USD 225 million assistance package. Mohammad Amin, CEO, Adhikar - He has vast experience in the field of development and has so far authored 4 books on Microfinance. Currently serving as Executive board member of Sanhati (Network of NGO) in Orissa. Krishnan Rajaram - Krishnan has over 8 years of experience in the IT and financial services industry focused on institution building, change management and managing business operations. Krishnan is a Chartered Accountant, Certified Financial Planner and an alumnus of the Indian Institute of Management, Bangalore. He currently lives in London. Krishna Tiwary – Lead Partner in a CA firm, Krishna Anurag and Company, based in NOIDA. Providing advisory services to ICICI Bank, Power-Grid Corporation of India, and Sphere Partners.

StateTotal Microfinance Clients Share of state to total clients (%) State Population % share of population Number of Poor ( ) % share of poor Microfinance Penetration Index Microfinance Poverty Penetration Index Uttar Pradesh 3,613, ,990, ,003, Uttarakhand 337, ,123, ,596, Rajasthan 2,335, ,525, ,489, Bihar 1,455, ,776, ,915, Madhya Pradesh 1,312, ,605, ,968, Total Comparison Andhra Pradesh 13,061, ,147, ,610, UP, Uttarakhand, Rajasthan, Bihar & MP are among the most populous states in India They are also some of the poorest – almost 45% of India’s poor are in these states However, microfinance penetration in these states is amongst the lowest in India Therefore, starting Operations in UP was a result of a compelling business logic. Source: Sa-Dhan Microfinance Report 2008

Western & Central UP Population: Around 4.5 Million Maximum of 3 other MFIs operating in these areas Microfinance Outreach in Uttar Pradesh Clients outreach 533,041 Portfolio outstandingRs. 347 crore Number of districts served36 Number of poorest districts15 Source: Sa-Dhan Microfinance Report 2008 Proposed Expansion Area Current Area of Operation