#612, Lingapur House, Amrutha Estates, Himayatnagar, Hyderabad-500 029,
Ph: 040-66828743, Mail ID: [email protected], www.nagarajan.co.in
V. NAGARAJAN & CO.,
Chartered Accountants
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF INDIAN GRAMEEN SERVICES
(A Company registered under Section 25 of the Companies Act, 1956)
Report on the financial statements
We have audited the accompanying financial statements of INDIAN GRAMEEN SERVICES (“the Company”),
incorporating accounts of the Livelihood and Finance Innovation Fund which comprise the Balance Sheet as at
March 31, 2014 and the Statement of Profit and loss for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation of these financial statements that give a true and fair view of
the financial position and financial performance of the Company in accordance with the Accounting Standards
notified under the Companies Act, 1956 (“the Act”) read with the general circular 15/2013 dated 13
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with the standards on auditing issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
• In the case of the Balance Sheet, of the state of the affairs of the Company as at March 31, 2014 and;
• In the case of the statement of Profit and Loss, of the profits for the year ended on that date.
#612, Lingapur House, Amrutha Estates, Himayatnagar, Hyderabad-500 029,
Ph: 040-66828743, Mail ID: [email protected], www.nagarajan.co.in
V. NAGARAJAN & CO.,
Chartered Accountants
Report on other legal and regulatory requirements
1. Since the Company is registered under section 25 of the Companies Act 1956, the Companies (Auditors’
Report) Order, 2003, issued by the Company Law Board in terms of section 227(4A) of the Companies Act,
1956 is not applicable.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
b) In our opinion, proper books of accounts as required by the law have been kept by the company, so far
as appears from our examination of the books maintained at the Head office and all the branches of
the company visited by us; the Company also has maintained separate set of books for the Livelihood
and Finance Innovation Fund, a fund bestowed upon the company, in trust, and for operations of
“banking correspondent” which relates to certain activities which are in the nature of business.
c) The Balance Sheet and the statement of Profit and Loss dealt with by this report are in agreement with
the books of account;
d) In our opinion, the Balance Sheet and the statement of Profit and Loss comply with the accounting
standards under the Companies Act, 1956 read with the general circular 15/2013 dated 13 September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e) On the basis of the written representations received from the directors as on March 31, 2014 and
taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014
from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
for V. Nagarajan & Co.,
Chartered Accountants
Place: Hyderabad
Date: July 31, 2014
V. Nagarajan
Partner
Firm Regn. no.: 04879N| M. No.:019959
(Amount in `)
BALANCE SHEET AS AT 31-Mar-14 31-Mar-13
Note
I. EQUITY AND LIABILITIES
Shareholders' funds
(a) Share capital 2.1 82,500 82,500
(b) Corpus fund 2.2 463,54,089 455,84,440
(d) Reserves and surplus 2.3 399,11,552 346,50,422
863,48,141 803,17,362
Non-Current liabilities
(a) Long-term borrowings 2.4 921,10,000 921,10,000
Current liabilities
(a) Trade payables 2.5 109,12,550 99,20,987
(b) Committed project based grants 2.6 664,30,148 691,96,317
(c) Other current liabilities 2.7 1283,99,013 910,91,605
(d) Due for collection (receivable from micro borrowers RBL
Bank as business correspondent) - per contra7917,97,776 -
9975,39,487 1702,08,909
TOTAL 11759,97,628 3426,36,271
II. ASSETS
Non-Current assets
(a) Fixed assets 2.8
i) Tangible assets 342,41,894 348,92,150
(b) Non-current investments 2.9 5,08,925 5,08,925
(c) Deferred tax assets (net) 2.10 19,46,740 3,81,783
(d) Long term loans and advances 2.11 1604,78,794 1313,81,193
(e) Due for collection (payable to RBL Bank from micro
borrowers as business correspondent) - per contra7917,97,776 -
9889,74,129 1671,64,051
Current assets
(a) Trade receivables 2.12 226,20,670 125,22,652
(b) Cash and cash equivalents 2.13 992,30,510 1237,08,169
(c) Other current assets 2.14 651,72,319 392,41,399
1870,23,499 1754,72,220
TOTAL 11759,97,628 3426,36,271
As per our report attached
for V. NAGARAJAN & CO.,Chartered Accountants
(V. NAGARAJAN) Vijay Mahajan (Chairman)
Partner
Firm Regn.No. 04879N / M.No.019959
Hyderabad, Mihir Sahana (Managing Director)
July 31, 2014
INDIAN GRAMEEN SERVICES
The accompanying notes form an integral part of these financial statements.
for and on behalf of Board of
Directors
Audited Financial Statement for the year ended March 31, 2014
(Amount in `)
STATEMENT OF PROFIT AND LOSS ACCOUNTFor the Year Ended
March 31, 2014
For the Year Ended
March 31, 2013
Note
REVENUE:
Revenue from operations 2.15 2408,78,276 1632,81,352
Other income 2.16 178,82,270 180,41,674
TOTAL 2587,60,546 1813,23,026
EXPENDITURE:
Operation and other expenses 2.17 1379,12,209 1218,20,157
Employee benefit expense 2.18 1144,61,871 523,18,337
Finance costs 2.19 13,77,998 15,09,148
Depreciation and amortisation expense 2.8 26,19,608 20,70,809
TOTAL 2563,71,686 1777,18,451
Profit before tax 23,88,860 36,04,575
Tax expense:
(a) Income Tax
- Current year tax 18,77,500 5,00,000
- Earlier year tax 1,38,558 22,28,910
(b) Deferred Tax
- Deferred tax assets (15,64,956) (3,81,783)
Profit after tax 19,37,758 12,57,448
Earning per equity share [Basic and diluted] Rs. 2,349 Rs. 1,524Weighted average number of equity shares (face value
of ` 100 each) 825 825
As per our report of attached
for V. NAGARAJAN & CO.,Chartered Accountants
Vijay Mahajan (Chairman)
(V. NAGARAJAN)
Partner
Firm Regn.No. 04879N / M.No.019959
Mihir Sahana (Managing Director)
Hyderabad,
July 31, 2014
The accompanying notes form an integral part of these financial statements.
INDIAN GRAMEEN SERVICES
for and on behalf of Board of Directors
Audited Financial Statement for the year ended March 31, 2014
Note on Activities of the Company:
1)
1.1 Basis of preparation of financial statements:
1.2
1.3
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.4
1.4.1
1.4.2
1.4.3
The Consolidated financial statements of the company includes two important busienss divisions related to main objects of the company for
Financial Inclusion, viz. (A) Business Correspondent and (B) Livelihood and Microfinance Promotion Fund (LAMP Fund). The individual
statements of the above two business divisions are reported in Annexure - A and Annexure - B respectively;
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
(Amount in `)
The Developmental Activities: Under this Division, during the year, IGS had taken up the following major initiatives:
A) Action Research: IGS focus is on the sub-sector / vector intervention. It identifies potential sub-sectors / vectors (e.g. Groundnut, Cotton, Paddy,
Soybean, Mushroom, Lac, Tasar, Milk, Handicraft, Water, Rural Power, etc.) in its area of operations, which can support a large number of livelihoods in the
rural areas. As part of sub-sector studies, the bottlenecks are identified and appropriate intervention strategies in collaboration with key players are
developed. Micro-intervention to test these strategies is then taken up for assessing their applicability on the ground and then scaled up to promote
employment opportunities and livelihoods of poor people.
"Indian Grameen Services (IGS) (herein after referred as 'the Company')” is a not-for-profit organization engaged mainly in developing, pilot–testing and
incubating innovative livelihood promotion solutions for the poor. It has been licensed under section 25 of the Indian Companies Act, 1956 by the
Government of India to operate on certain conditions, mainly being that the company shall apply its profits, if any, or other income solely in promotion of
its objects, and is prohibited from payment of any dividend to its members. Further the Company is registered under Section 12A of the Income Tax Act,
1961.
The Company’s operations broadly divided into two major thrust areas involving Grant based development support in the field of Livelihood Promotion and
Fee based Business Support Services and Activities to augment, expand and achieve scales in the promotion of Livelihoods in India.
The Developmental Activities involves research and development (R&D) for identifying appropriate livelihood opportunities to the masses and intervention
points for supporting rural producers. In addition, Company builds the implementation (HRD) capabilities of various institutions and enabling them to
deliver cost effective livelihood promotion activities, by involving itself in supporting different aspects of livelihoods, including to various community based
organizations at grass root level. The Company earns service fees for these R&D, HRD and Institutional support activities from various sources, which are
further supported by grants and endowments.
Depreciation is provided on the written down value at the following rates on pro-rata basis from the day the asset is put into use.
B) Livelihood Triad Services: Studies and research on promoting livelihoods of poor people reveals that poor people/ small and marginal producers living in
far flung areas face lots of challenge in developing a portfolio of sustainable livelihoods for them and their families and a mix of services is to be offered to
make them sustainable . IGS has been working with these communities and provides livelihoods triad services which is a mix of financial inclusion services (
savings credit, remittances, insurance etc.), Institutional development and policy support by working in groups and media and finally provide technical
support services like market linkages, Agriculture extension, entering into contract farming, support in buying and selling activities directly or through a
collaboration with various banks, research agencies, companies , government agencies among others . IGS also works on sectors like clean drinking water,
sanitation, energy which has a direct link on the livelihoods and welfare of the poor masses.
Significant Accounting Policies:
The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally
accepted accounting principles in India and specifically to comply in all material respects with the notified Accounting Standards (AS) issued
under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 ('the Act').
Revenue recognition:
Amount received against written-off loan is recognized on receipt basis.
Revenue from livelihood promotion activities is recognised on the basis of proportionate completion of the contract with
reference to the stage of performance and corresponding income.
Income from development services is recognized on proportionate completion method, measured by reference to the proportion
of work completed under each contract.
Interest on loans to CBOs/NGOs is recognized on accrual basis, except in the case of Non-performing assets (“NPAs”).
The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported
in the financial statements and notes thereto. Differences between actuals and estimates are recognized in the period they materialize.
Use of estimates:
Interest income on deposits with banks is recognized on time proportion basis taking into account the amount outstanding and the
rate applicable.
Fixed assets are stated at cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition
and installation.
The assets purchased (net of sale proceeds) are shown in the Balance Sheet at written down value under the head ‘Fixed Assets’,
the corresponding amount is reflected as Fund balance under the head ‘ASSETS ACQUISITION FUND’ to reflect the depreciated
value of the assets being utilized by the Company.
Fixed assets and depreciation:
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
1.4.4
1.4.5
1.5 Investments:
1.6
1.7
1.8
1.9
1.10
Assets costing upto Rs. 5,000 individually are fully depreciated in the year of purchase.
Long-term investments are shown at cost. Provision for diminution in value is made, if in the opinion of the management the decline is
considered other than temporary. Current investments are shown at cost and the fall in value as compared to cost is provided for.
The rate assumed for calculating the depreciation under written down value method is as follows:
Vehicles
13.91%
25.89%
Office equipment
100%More than 12 months
Furniture & Fixtures 18.10%
13.91%
More than 6 months less than 12 months
Professional Equipment (Others)
Remarks
Based on quarterly assessment
OverdueProvision in % of loan
outstanding
Class of fixed assets Rate of Depreciation
Up to 6 Months
20%
Policy on provisioning for loans:
The Policy, in respect of provision for loan losses, is designed to be higher than those prescribed under various statutory directives from
time to time, since the credit provided from the Fund is an un-secured one, as well as, credit is extended to nascent NGO-MFIs and CO-MFIs
with an aim to hit the targeted poor families.
Professional Equipment (computers & software)
10%
40.00%
Retirement benefits:
Provisions and contingencies:
Deferred tax expense or benefit is recognised on timing differences, being the difference between taxable income and accounting income
that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Foreign currency transactions:
In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be available to realise such assets. In other situation, deferred tax assets are
recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.
The company has schemes of retirement benefits having provident fund and gratuity fund in respect of which the Company’s contribution
to the funds are charged to respective projects. The gratuity benefits of the company are administered by a trust formed for this purpose
through the schemes of Life Insurance Corporation of India. Gratuity is being computed as per statutory norms and paid to the trust.
Identified Loss Assets and Assets with an age of 12
months after 100% provisioning
100%
The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources
and reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made, when there is a possible
obligation or a present obligation that will probably not require outflow of resources or where reliable estimate of the obligation can not be
made.
Accounting for taxes on income:
Based on proposal from LAMP Fund Manager for write off
with details on efforts and reasoning for such write off
with due approval from LAMP Fund Committee.
All transactions in foreign currency are recognized at the exchange rate prevailing on the date of transactions. Liabilities and receivables in
foreign currency are converted at the exchange rate prevailing at the close of the financial year and net gain or losses are recognized in the
statement of profit and loss account.
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
2)
2.1
Authorised:
10,000 equity shares of Rs. 100 each
Issued, subscribed and paid-up:
825 equity shares of Rs.100 each fully paid-up
2.1.1 The details of shareholders holding more than 5% of shares set out below:
2.2
Total
i
ii
iii
2.3
A: Surplus in statement of profit and loss account
Opening balance
Additions during the year
Assets/depreciation (as per contra)
Assets/depreciation (as per contra)- Deletion -
Appropriations:
Interest transferred to Corpus fund as per contractual obligation
Transfer to commitment based projects fund [note 2.6 (A)]
Transfer to capital grant/subsidy
B: Assets acquisition fund (net of depreciation)
Opening balance
Assets/depreciation (As per contra)
Assets/depreciation (as per contra)- Deletion -
Assets purchased from Grant Fund -
Opening balance of Shore Bank International Project
Less: Capital/revenue expenditure
Total
239,93,941 167,31,071
- 93,96,489
93,96,489
399,11,552
-
346,50,422
-
(35,85,286)
Notes on accounts
10,00,000
82,500 82,500
10,00,000
9.94%
31-Mar-14 31-Mar-13
Share capital
31-Mar-14 31-Mar-13
Deep Joshi 9.94%
Sankar Datta
31-Mar-14 31-Mar-13
125,70,325
9.94%
10% of the interest earned on the corpus fund investment from Swiss Agency for Development Cooperation, which in the
judgment of the Company hedges against inflation as per Section 3 of the Agreement.
126,94,580
9.94%
31-Mar-14 31-Mar-13
1,24,255
Bharti Gupta Ramola
9.94%
Swiss Agency for Development and Cooperation
In order to protect the value of the corpus fund against inflation, the company invests following amount into the corpus fund at the end of
each financial year.
9.94%
455,84,440 463,54,089
323,96,924
6,45,394
330,14,115
Add: Interest transferred from Note 2.3 (A)
336,59,509
Corpus fund
Being a contractual obligation, irrespective of the net deficit, the company continues to provide for the above hedging.
124,56,396
6,17,191
1,13,929
125,70,325
Sir Ratan Tata Trust
Reserves and surplus
330,14,115
10% of the interest earned or unutilized portion of interest whichever is greater, as per Section (e) of the agreement with Sir Ratan
Tata Trust.
Add: Interest transferred from Note 2.3 (A)
(7,69,649)
4,33,141
19,37,758 12,57,448
100,06,225
70,71,195
(4,33,141) 35,85,286
(15,43,966)
299,05,327
15,43,966
(7,31,120)
27,66,169 9,25,339
- 93,96,489
C: Capital grant/subsidy
106,56,481
13,26,851
239,93,941
106,56,481
-
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
2.4
Unsecured
The Ford Foundation, New York City, USA #
Total
2.5
Sundry creditors
Total
2.6
Developpement international Desjardines [DID]
Opening balance
Total
2.7
Statutory dues
Payable to staff
Interest accrued but not due on borrowings
BCSA float deposit
Exchange fluctuation reserve
Income received in advance
Provision for tax
Other payables
Payable to related parties
Bhartiya Samruddhi Investment and Consulting Services Ltd
BASIX Sub-K iTransaction Ltd
Total
2.9
Corpus Fund (Non-trade, Unquoted and valued at cost)
12.60 % Govt. of India Stock 2018
5,000 units of Rs. 100/- each [Market value not available]
(provided by Sir Ratan Tata Trust)
Total
2.10
Major component of deferred tax assets consist of the followings:
(a) Depreciation and amortization expense
(b) Provision for long term loans and advances
Total
-
691,96,317
(27,66,169)
30,09,219
38,18,262
7,93,564
447,62,389
31-Mar-13
113,21,448
40,469
5,08,925
7,39,938
31-Mar-14 31-Mar-13
Trade payables
109,12,550 99,20,987
109,12,550
5,08,925
3,81,783
-
31-Mar-13
Non-current investments
5,08,925
18,77,500
5,08,925
1283,99,013 910,91,605
19,46,740 3,81,783
12,06,801
167,63,621 21,78,662
31-Mar-14
701,21,656 691,96,317
31-Mar-13
Committed project based grants
6,77,351
296,60,719
31-Mar-13
921,10,000 921,10,000
233,79,219
459,07,212
Loan availed from Ford Foundation, USA, rate of Interest 1% and Exchange Fluctuation Rate 4%. Repayable in 4 equal installments
commencing from May 29, 2020. As per the loan agreement, at the end of the each anniversary (May 31), Company shall deposit into
Exchange Rate Fluctuation Account, in US$ equivalent of an amount which is four percent of the loan outstanding amount.
31-Mar-14
-
664,30,148
Deferred tax assets
194,95,478
6,43,550
31-Mar-13
60,11,573
31-Mar-14
91,50,382
Other current liabilities
-
99,20,987
Long-term borrowings
31-Mar-14
921,10,000921,10,000
Less: Transferred from Statement of profit & loss account [note 2.3 (A)] (9,25,339)
31-Mar-14
Audited Financial Statement for the year ended March 31, 2014
As on
April 01, 2013
Additions during
the year
Sale / Transfer/
Adj. during the
Year
As on
March 31, 2014
As on
April 01, 2013 For the Year
Sale / Transfer/
Adj. during the
Year
As on
March 31, 2014
As on
March 31, 2014
As on
March 31, 2013
I Land & Buildings 242,35,669 - 242,35,669 - - - - 242,35,669 242,35,669
242,35,669 - - 242,35,669 - - - - 242,35,669 242,35,669
I Agriculture Land 14,83,758 - - 14,83,758 - - - - 14,83,758 14,83,758
II Furniture and Fixtures 37,98,542 8,17,823 18,56,692 27,59,673 24,99,278 5,41,054 11,42,935 18,97,397 8,62,276 12,99,264
III Professional Equipment 77,19,815 8,47,296 19,53,594 66,13,517 64,95,961 6,40,324 18,10,449 53,25,836 12,87,681 12,23,854
IV Professional Equipment
(computer software)
43,58,368 - - 43,58,368 37,26,426 2,52,777 - 39,79,203 3,79,165 6,31,942
V Professional Equipment (others) 19,41,335 99,421 1,95,050 18,45,706 10,34,635 1,33,365 1,10,330 10,57,670 7,88,036 9,06,700
VI Office Equipment 63,67,806 17,48,778 7,64,323 73,52,261 12,56,843 10,52,088 1,61,979 21,46,952 52,05,309 51,10,963
256,69,624 35,13,318 47,69,659 244,13,283 150,13,143 26,19,608 32,25,693 144,07,058 100,06,225 106,56,481
499,05,293 35,13,318 47,69,659 486,48,952 150,13,143 26,19,608 32,25,693 144,07,058 342,41,894 348,92,150
442,49,198 56,56,096 - 499,05,294 129,42,334 20,70,809 - 150,13,143 348,92,151
Notes:
for V. NAGARAJAN & CO.,Chartered Accountants
Vijay Mahajan (Chairman)
(V. NAGARAJAN)
Partner
Firm Regn.No. 04879N / M.No.019959 Mihir Sahana (Managing Director)
Hyderabad,
July 31, 2014
INDIAN GRAMEEN SERVICES
Grand total [A+B]
Note 2.8 : Fixed Assets
S. N.
D E P R E C I A T I O N
Notes to the Audited Financial Statement for the year ended March 31, 2014
Out of Corpus fund:
(Amount in `)
Others:
Previous year
Total [A]
Total [B]
N E T B L O C K G R O S S B L O C K
for and on behalf of Board of Directors
As per our report of even date
ii) Individual assets acquired for Rs. 5,000 or less are fully depreciated in the year of acquisition.
Tangible Assets
Name of Assets
i) Depreciation has been provided on written down value method at the rates prescribed by Schedule XIV of the Companies Act, 1956
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
2.11
Unsecured, considered good
Telephone and rent deposits
TDS recoverable [net of provision of Rs. 2,867468 (previous year: nil)]
Other loans and advances
Loan to NGOs/CBOs/Co-operatives/Producer Company [LAMP Fund]
- Unsecured and considered good
- Unsecured and considered doubtful
Less: Provision for non-performing assets
Total
2.12
Outstanding for less than six months
Unsecured, considered good
Debts due from related parties:
BASIX Consulting and Training Services Ltd
Bhartiya Samruddhi Investments & Consulting Services Ltd -
The Livelihood School
Krishna Bhima Samruddhi Local Area Bank Limited
Bhartiya Samruddhi Finance Ltd. -
BASIX Krushi Samruddhi Ltd.
BASIX academy for building Lifelong Employability Limited
Citran Consulting Limited -
Shamil Milk Products Ltd -
Basix Information Infrastructure Services Ltd -
Vayam Renewable Ltd
Total
2.13 Cash and cash equivalents
Cash in hand
Balance with banks
- in current accounts
- in current account on behalf of BCSA's
- in deposit accounts
Out of Corpus fund provided by:
Sir Ratan Tata Trust
Swiss Agency for Development and Cooperation
Out of Project/loan fund provided by:
Ford Foundation
Developpment international Desjardins, LAMP
Ford Foundation - Exchange fluctuation reserve
Jamsetji Tata Trust - DBI Project
Syndicate Bank - BCSA's float Deposit
Other project fund
Total
Bank deposits with more than 12 months maturity
2.14
Advances to staff, others & projects
Interest accrued on term deposits and investments
Interest accrued on loans
Prepaid expenses
Transaction receivable from BCSA's
Prepaid taxes (pending for refund on appeal)
Stock of work in progress (net)
Total
4,00,000
31-Mar-1331-Mar-14
1072,61,590
5,51,082
3,372
125,22,652
Long term loans and advances
- 3,61,202
31-Mar-13
10,91,678
-
223,37,996
1,26,083 1,07,236
102,59,974
11,72,488
5,11,190
1313,81,193
6,08,860
31-Mar-14
3,372
226,20,670
1604,78,794
Trade receivables
31-Mar-14
205,62,847
398,99,852
25,53,652
392,41,399
212,30,275
234,29,674
85,05,190
333,41,357
16,17,289
31-Mar-13
23,637
297,20,267
12,892
292,31,236
8,20,236
10,114
(32,96,270)
223,07,162
1203,12,917
-
-
(68,46,729)
156,01,687
21,79,683
41,32,487
9,76,224
463,22,115
1,83,456
70,62,429
58,28,791 29,75,834
7,94,676
68,24,955
30,60,924
6,32,782
8,37,709
6,03,013
448,75,675
15,83,621
31-Mar-14
15,94,355
-
118,49,027
689,35,524
31-Mar-13
33,81,280
651,72,319
302,94,985
88,39,364
130,52,046
172,36,780
156,50,321
181,45,129
37,51,722
95,52,995
-
87,25,875
1237,08,169 992,30,510
195,20,670
1002,78,495
Other current assets
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
2.15
Revenue from development operations
- Business correspondent for financial inclusion
- Institutional development
- Action research and development services
Revenue from livelihood promotion activities
Interest on loans to CBO/NGOs
Total
2.16
Interest from investments and term deposits
Rental income
Interest on savings bank account
Returnable Grant
Miscellaneous income
Total
2.17
Program expenditure
Consultancy expenses
Travel and conveyance
Loss on Foreign exchange fluctuation expense
Service charges to livelihood service providers
Rent
Provision/(reversal of provision) for non-performing assets
Office maintenance expenses
Postage and telecommunications
Books, printing and stationery
Bad debts written-off
Meeting expenses
Training expenses
Rates and taxes
Payments to the auditor
- as auditor
- for taxation matters
- for management services
- for other services
- for reimbursement of expenses
Repairs and maintenance
Director's sitting fee
Sundry advances written off
Other expenses
Total
2.18
Salaries, wages and bonus
Contributions to provident and other funds
Staff welfare expenses
Gratuity
Total
2.19 Finance costs
Interest on long term borrowings
Bank charges
Total
363,04,208
14,90,898
9,21,100
1379,12,209
16,80,189
31-Mar-13
157,51,025 133,16,553
20,26,436
2,11,346
77,500
14,80,937
77,09,651
31-Mar-14 31-Mar-13
Revenue from operations
420,59,290
947,49,804
1081,67,830
180,95,385
8,92,881 4,19,408
73,89,275 52,33,170
3,37,500 3,42,020
Other income
953,26,095
35,37,941 19,80,430
31-Mar-13
100,92,666
31-Mar-14
2408,78,276 1632,81,352
15,09,148
4,56,898
13,77,998
5,88,048
31,61,283
2,62,095
1144,61,871
31-Mar-13
Employee benefits expense
46,031
9,21,100
1,60,000
1,78,511
31-Mar-14
4,42,939
1,86,456
523,18,337
31-Mar-14
111,75,275
286,89,730
73,93,108
24,65,022
31-Mar-14
1218,20,157
-
62,10,465
37,69,464
189,86,703
213,21,575
75,13,854
20,84,893 17,55,779
Operation and other expenses
397,59,526
34,83,119
81,74,030 36,84,400
35,50,459
19,02,860
(23,26,042)
3,25,135
16,48,219
6,51,846
2,68,386
2,38,220
23,09,333
214,44,268
75,75,508
9,75,910
9,07,666
1,68,540 5,05,620
1,12,360
3,37,080
35,07,057
1,17,413
6,11,003
20,80,519
6,74,160
11,56,911
255,61,034
31-Mar-13
478,21,632 1046,70,199
2,24,155
178,82,270 180,41,674
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
3) Supplementary information:
3.1 Business Correspondent for Financial Inclusion:
3.1.1
No of
Branches/
BCSA
outlet
No of
Deposit /
Savings
Accounts
Deposit/
Savings
Amount in
lakhs
No of
outstanding
credit
account
Disbursement
Amount in
lakhs
No of Field
Staff
1134 318823 250 - 137
33 24811 1420 -
65
43 122809 17,311 249
31 49900 8,923 175
1241 343634 1670 172709 26234 626
3.1.2
3.1.2.1
3.1.2.2 RBL Bank (RBL) :
a)
b)
c)
d)
e)
f)
g)
h)
Amount Dr/Cr
7,836.32 Dr
6,99,999 Cr
3,23,150 Dr
118,98,283 Dr
7917,97,776 Cr
Status
Confirmed
The company is maintaining books of accounts till the first point of business, viz with the borrowers at Centre
Meetings, conducted and attended by Customer Service Representatives (CSR) of the company, for cash control and
effective management of operations; however, the borrower based data both personal as well financial is maintained
by RBL, in is central servers for interest calculations and monitoring of non-performance
The company has an internal control and internal audit system and is strengthening it to commensurate with the risk
associated with the growing operations and size and scale of business
Various balances due to/due from, RBL Bank, on account of being "Business Correspondent", are grouped under heads
as below:
Description
Pune Region
Krishna Bhima Samruddhi Local Area Bank Ltd (KBS LAB):
Was acting as a BC and since ceased to be operating from October 2013; and was dealing with savings and loans.
Started acting as a BC from April 2013/ Oct 2013 in Kolahpur/ Pune Regions respectively; and is dealing with only
loans. In Pune Region, the company operates with 12 branches and acts as a Banking Correspondent to distribute
micro loans of RBL to groups of women entrepreneurs in rural and semi urban areas and recover the same on behalf
of RBL for onward payment. All the lending and recoveries (along with interest and other charges) is routed through the books of IGS pool account
and periodically reconciled with RBL.
IGS being a company registered under section 25 of the Companies Act, 2013/1956 is authorised by RBI to engage in
such activities.
As the loan assets are held and owned by RBL, it is not recognised in the books of the company. The loan recoverable
with interest and charges from the women micro borrowers and payable to RBL is stated as liability and asset, per
contra as intermediary agent, in its financial statements.
Business Correspondent
operations
The fee received and expenses incurred in execution of its status as Business Correspondence is recognised in the
books of accounts, under appropriate heads.
Account
Due for collection
(from Micro Borrower
as BC)
Annexure A:The company is extending Financial Inclusion services as a Business Correspondent of Krishna Bhima Samruddhi Local
Area Bank Ltd (KBSLAB), RBL Bank and Syndicate Bank, in tune with its objects for promotion of Financial Inclusion Services to the
poor and less privileged in the unbanked areas of India, under various commercial banks. This is as per RBI circular no. RBI/2011-
12/100 DBOD.NO.BL.BC.33/22.01.001/2011-12, dated July 01, 2011 and subsequent circulars issued by RBI from time to time.
Confirmed
Business Transaction
account On account excess recoveries
Advance account
Balance unadjusted from
mobilisation Not confirmed
Confirmed
Not confirmed
Bank Account No:
40900075238
Regular banking transaction (pool
a/c)
Account payable
Total
These accounts pertain to Business Correpondent services provided by IGS to the following banks as on March 31, 2014
Name of the Bank
Syndicate Bank
Krishna Bhima Samruddhi Local Area Bank
Ltd (as on September 30, 2013)
RBL Bank
Kolhapur Region
Services bill due for the month of
March 2014
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
3.1.3 Term deposits with Syndicate Bank:
3.1.3.1
3.1.3.2
3.1.3.3
3.1.3.4
3.1.3.5
3.2 Livelihood financial services
3.2.1
3.2.2
3.2.3
As at 31 March 2014
Classificati
on criteria
No. of
accounts
0-180 days 71
181-365
days
4
Above 365
days
5
80
No. of active clients
Loans Outstanding (`. ‘000’s)
Development Support to CBO/NGOs (Returnable and Operating
Grants):
Amount of Loans Sanctioned (`. ‘000’s)
Value of Development Support Sanctioned (`. ‘000’s)
Development Support Disbursed (`. ‘000’s)
No. of Clients
Amount Outstanding Asset classification
Standard assets 1251,45,418
Doubtful assets 52,62,047
Non-performing assets
Sub-standard assets 55,07,139
1359,14,604 Total
In 2008, Ford Foundation supported through a long term loan of Rs. 92 million towards expansion of the LAMP fund and with the
mandate of promoting large number of small & medium livelihood promoting institution in the different states of India.
Summary of Activities as at March 31, 2014
Particulars
Provision
4,83,250
52,62,047
11,01,432
68,46,729
Loans:
No. of Loans Sanctioned
No. of Loans Disbursed (Including Previous Sanction)
192
Loans Disbursed (`. ‘000’s)
Loan to NGOs/CBOs/Co-operatives/Producer Company portfolio has been classified as per LAMP Fund Committee policy. The
detials are as follows:
The Bank has a lien on the term deposits to the extent of loan advanced by it to BCSAs on purchase of equipment by
BCSA.
Upon release of the lien, the Term deposits will be available to the Company as security against float balances made
available by the company to BCSAs for operations between the customers of the bank and the bank.
1,35,914
Till such time the float amount made available to such BCSAs which aggregates to Rs. 8.40 lacs remains unsecured.
190
In respect of its Business Correspondent agreement with Syndicate Bank and operationalization thereof, the Company
holds term deposit certificates issued by bank in the joint name of Business Correspondent Service Agent’s [BCSA’s]
and the Company.
37
The Company is conducting the study of institutions and delivery models to suggest alternative implementation models for NREGA
and SGSY, improve access to savings, technology assisted financial inclusion services. Also specific grant based (returnable / non
returnable) and subsidized financial support (Loans) to various NGOs and CBMFIs through the corpus / long term funds institutions
by various International Developmental Institutions.
Annexure B: Livelihood and Microfinance Promotion Fund (LAMP Fund) was conceptualized and started with a contribution of Rs.2
million from IGS in the year 2001. Later Développement International Desjardins, Canada (DID) has created a fund from the loan
repayment of Bhartiya Samruddhi Finance Limited along with the interest by assigning the same to Indian Grameen Services. The
overall goal of the LAMP Fund is to contribute towards improvement in livelihood situation in rural India, especially for the
disadvantaged sections of the society, through developing products and supporting financial services to small NGO microfinance
institutions (NGO-MFIs), as well as community owned microfinance institutions (CO-MFIs). The fund statement is shown in Note
2.6 of Committed project Based Grant.
27
15
During the year Cumulative
178
97,665
3,95,090
36,217
These deposits are entirely funded by BCSAs and not reflected in the books of the Company.
2,860
3,77,090
43,225
91,165
80
300
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
As at 31 March 2013
Classificati
on criteria
No. of
accounts
0-180 days 64
181-365
days
3
Above 365
days
4
71
3.33.3.1
Current service cost
Interest cost on benefit obligation
Expected return on plan assets
Net actuarial (gain) / loss recognized in the year
Past service cost
Net expense recognized
3.3.2
Defined benefit obligation
Less: Fair value of plan assets
Less: Unrecognized past service cost
Plan liability / (asset)
3.3.3
Opening defined benefit obligation
Interest cost
Current service cost
Benefits paid
Actuarial (gains) / losses on obligation
Closing defined benefit obligation
3.3.4
Opening fair value of plan assets
Expected return
Contributions by employer
Benefits paid
Actuarial gains / (losses)
Closing fair value of plan assets
3.3.5
Investments with insurer
3.3.6
Discount rate
Salary escalation rate
Expected rate of return on plan assets 8.75% 9.15%
Total 1113,94,077 32,96,270
Sub-standard assets 11,53,068 2,30,618
Doubtful assets 23,25,238 23,25,238
-
(9,05,780)
31-Mar-13
10,449
3,04,184
Asset classification Amount Outstanding Provision
Standard assets 1079,15,771 7,40,414
Non-performing assets
Changes in the present value of the defined benefit obligation are as follows:
Figures recognised in the balance sheet:
13,53,181
(9,05,780)
(4,88,598)
4,52,624
4%
(9,86,610)
4%
14,08,792
-
13,53,181
Employee retirement benefits [Disclosure under Accounting Standard- 15]
31-Mar-13
(1,66,672)
8,95,025
8%
1,08,254
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant
factors, such as supply and demand in the employment market.
35,974
18,41,779
(4,88,598)
-
18,41,779
31-Mar-13
28,30,288
4,04,655
8%
The principal assumptions used in determining gratuity benefit obligations for the company’s plans are shown below:
100%
(35,974)
31-Mar-14
10,449
-
8,21,837
18,41,779
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period
over which the obligation is to be settled.
31-Mar-14
3,04,184
(9,86,610)
19,24,508 13,53,181
31-Mar-14
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows
1,08,254
4,52,624
1,12,703
31-Mar-14
26,89,654
-
5,14,112
Changes in the fair value of plan assets are as follows:
1,66,672
-
31-Mar-13
Expenses recognised in statement of profit and loss account:
19,24,508
5,14,112
31-Mar-13
100%
28,30,288
-
1,12,703
1,02,761
31-Mar-13
31-Mar-14
31-Mar-14
-
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
3.4 Related party disclosures
3.4.1 Names of Related Parties and Nature of Relationship:
3.4.2 Transaction with related parties:
Type of
transactionReceipt
Payment
Receipt
Payment
Receipt
Payment
Receipt
Payment
Receipt
Receipt
Receipt
Payment
Receipt
Receipt
Receipt
Receipt
Receipt
Receipt
Receipt
Receipt
Vayam Renewable Ltd Entity in which Directors have significant influence
Entity in which Directors have significant influence
-
48,26,712
Entity in which Directors have significant influence
1,45,000
- Rent and reimbursement of
expenses
-
9,000
Rent and reimbursement of
expenses
Bhartiya Samruddhi Finance
Limited
Rent and reimbursement of
expenses
BASIX Municipal Waste Ventures
Ltd
9,000
13,31,342
Entity in which Directors have significant influence
2,03,309
10,00,000
31-Mar-13
- Purchases of fixed assets
30,000
-
BASIX Krushi Samruddhi Ltd
Name of the party
Bhartiya Samruddhi Investment and Consulting
Services Ltd
Entity in which Directors have significant influence
BASIX Information Infrastructure Services Ltd
Name of the party
BASIX Academy for Building Lifelong Employability
4,27,383
Mr. Vijay Mahajan
(Amount in `)
DSC Foundation Limited
Entity in which Directors have significant influence
Entity in which Directors have significant influence
15,00,000
Entity in which key management personnel have significant influence
Entity in which Directors have significant influence
Bhartiya Samurrdhi Investment
and Consulting Services Ltd
[BASICS Ltd]
Mr. Mihir Sahana
Nature of transaction
Entity in which Directors have significant influence
BASIX SUB-K iTransactions Ltd
4,28,500
9,000
299,67,273
Rent and reimbursement of
expenses
51,06,452
94,70,448
Rent and reimbursement of
expenses
Support rendered for Syndicate
Bank as a Business
Correspondent
Rent and reimbursement of
expenses
Citran Consulting Limited
Shamil Milk Products Ltd -
- 9,000
BASIX Consulting and Training
Services Ltd
3,40,226
Rent and reimbursement of
expenses
The Livelihood School
1,00,000
Rent and reimbursement of
expenses
31-Mar-14
Rent & Reimbursement of
Electricity Charges
4,22,106
Grant Support
1,76,500
Consultancy fee
Consultancy fee - (Strategic
support to strengthen the
LAMP Fund operations)
56,000
-
24,86,626
BASIX Municipal Waste Ventures Ltd
Entity in which Directors have significant influence
The Livelihood School
Citran Consulting Limited
BASIX SUB-K iTransactions Ltd
BASIX Consulting and Training Services limited Entity in which Directors have significant influence
Bhartiya Samruddhi Finance Limited
Entity in which Directors have significant influence
BASIX Krushi Samruddhi Ltd
Krishna Bhima Samruddhi Local
Area Bank Limited
BASIX Academy for Building
Lifelong Employability
Rent and reimbursement of
expenses
Krishna Bhima Samruddhi Local Area Bank Limited
7,40,717
BASIX Information Infrastructure
Services Ltd
DSC Foundation Limited 9,000
Nature of Relationship
Shamil Milk Products Ltd
Consultancy fee
Entity in which Directors have significant influence
Business Correspondent
Services Fees
52,71,245
Rent and reimbursement of
expenses
20,000
Rent and reimbursement of
expenses
-
4,59,025
3,40,356
-
Key management Personnel
Consultancy fee/Training
Key management personnel
140,14,709
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICESSignificant Accounting Policies and Notes on Accounts for the year ended March 31, 2014
3.4.3 Balance receivable/(payable) with related parties:
4)
A. Contingent liability:
4.1
B. Commitments : Nil (Previous year: Nil)
5) Earnings and expenditure in foreign currency on accrual basis:
6)
7)
8)
Vijay Mahajan
Chairman
Hyderabad,
July 31, 2014
Partner
Firm Regn.no. 04879N / M.No.019959
for and on behalf of Board of Directors
Managing Director
Mihir Sahana
Chartered Accountants
V. Nagarajan
for V. NAGARAJAN & CO.,
Vayam Renewable Ltd -
6,08,860
Shamil Milk Products Ltd 3,372
3,372
(40,469)
The Livelihood School
BASICS Limited
Earning
Development service fees
44,120 16,900
4,36,860
12,63,307
4,00,000
Income Tax Liability:
a) In respect of Assessment year 2007-08, based on the decision and direction by Hon’ble Income tax Appellate Tribunal, Delhi, the
assessment stands nullified and the Commissioner of Income tax (Appeals) has been directed to examine the matter of dispute afresh,
based on the directions so issued. Pending this examination, the company has not provided any liability for tax due aggregating to Rs.
192.77 lacs against which the department has adjusted tax deducted at source of Rs.70.62Lacs which is due to the company and disclosed
as an asset in the accounts.
Corresponding figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the figures of the
current year.
13,74,860 9,65,220
Membership Fees
Total Expenditure
Travel Expenses
Expenditure
9,21,100 9,21,100 Interest Payment
-
Prior year comparatives:
The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development
Act, 2006. Under these circumstances, the information, if any, required to be disclosed under the Act, has not yet been ascertained.
Additional information as required under paragraph 5 of the part II of the Schedule VI to the Act to the extent either "Nil" or "Not applicable" has
not been furnished.
Dues to Micro and Small enterprises:
-
Particulars
(91,50,382)
Bhartiya Samruddhi Finance Limited
(Amount in `)
BASIX academy for building Lifelong Employability Limited
BASIX Consulting and Training Services Ltd
1,07,236
-
31-Mar-14 31-Mar-13
5,11,190 -
- 11,72,488
1,83,456
3,61,202
-
-
- 10,114
12,892
(38,18,262)
-
1,26,083
(Amount in `)
BASIX Krushi Samruddhi Ltd
BASIX SUB-K iTransactions Ltd
Basix Information Infrastructure Services Ltd
Citran Consulting Limited
8,20,236
Krishna Bhima Samruddhi Local Area Bank Ltd
31-Mar-14 31-Mar-13
Contingent liability and capital commitments:
Name of the party
b) In view of the predominant, business activities carried by the company, the tax liability if any, on the business operations of company as
may be perceived by the Income tax Authorities has been considered in the accounts.
Audited Financial Statement for the year ended March 31, 2014
NOTE 9 : SEGMENT WISE RECEIPT AND PAYMENTS FOR THE PERIOD ENDED MARCH 31, 2014
(Amount in `)
Developpment
International
Desiardines
Fund
Ford Foundation
FundLFIF General
LAMP
Management
Fees
KBS LAB RBL Bank Syndicate Bank
A: I N C O M E
Contribution from Foreign and Indian Agencies - - - - - - - 953,26,095 - - - 953,26,095 947,49,804
Fees from services - - - - 52,71,245 695,99,615 332,96,970 - - 2,50,394 194,29,372 4,11,945 1282,59,541 545,81,585
Interest from investments and term deposits 9,98,338 32,24,624 3,58,283 26,781 - - - 56,424 20,59,488 - - 9,85,729 77,09,666 100,92,666
Interest on loans 60,44,070 97,06,546 409 - - - - - - - - - 157,51,025 133,16,553
Rental income - - - - - - - - 56,37,000 - - 17,52,275 73,89,275 52,33,170
Retunable Grant 4,19,408 4,19,408 8,92,881
Other income 95,360 94,685 5,839 16,959 199 - 4,35,777 92,522 - 15,45,269 81,500 15,37,426 39,05,536 24,56,367
Total A 75,57,176 130,25,855 3,64,531 43,740 52,71,444 695,99,615 337,32,747 954,75,041 76,96,488 17,95,663 195,10,872 46,87,376 2587,60,546 1813,23,026
B: E X P E N D I T U R E
Salaries and staff benefits - - - 41,89,305 25,90,500 564,08,701 - 406,53,859 8,67,882 6,91,231 88,78,926 1,81,468 1144,61,871 523,18,337
Training expenses - - - - - 86,568 - 1,93,402 1,52,698 - - 5,43,242 9,75,910 3,25,135
Travel and conveyance - - - 16,18,761 4,72,458 24,98,334 50 118,99,776 64,878 2,57,666 34,75,703 14,25,029 217,12,654 215,08,031
Books, printing and stationery - - - 27,075 1,11,023 2,54,192 - 12,15,084 7,050 3,289 2,98,379 1,53,051 20,69,143 17,56,379
Postage and telecommunications - - - 88,136 1,98,892 3,50,728 - 11,43,176 462 17,711 2,00,619 80,795 20,80,519 34,83,119
Auditors' remuneration - - - 47,188 - 1,68,540 - 12,360 - - - 7,32,025 9,60,113 10,01,091
Professional services - - - - - 3,43,000 299,67,273 21,72,665 24,72,248 47,915 9,01,044 4,00,063 363,04,208 255,61,034
Contract services - - - - 8,57,990 5,58,725 - 40,19,729 - 58,726 7,00,295 15,000 62,10,465 189,86,703
Rent - - - 1,80,000 10,87,668 16,66,416 - 22,44,211 - 76,100 2,88,159 19,71,300 75,13,854 37,69,464
Other administrative expenses 3,771 77,075 - 92,478 4,34,308 6,52,867 2,76,048 33,70,413 10,97,612 1,16,225 2,94,463 7,24,358 71,39,616 82,59,901
Program expenditure: input material cost 32,77,060 - - - - - - 315,85,500 28,090 3,07,827 43,90,834 1,85,965 397,75,276 288,23,482
Bad and doubtful debts written off 11,15,480 7,70,020 - - - - - - - - - - 18,85,500 75,75,508
Interest on borrowings - 9,21,1.00 - - - - - - - - - - 9,21,100 9,21,100
Provision/(reversal of provision) for non-performing
assets
12,29,210 23,21,249 17,360 - - - - - - - - 35,67,819 (23,26,043)
Loss on Exchange fluctuation reserve (Ford Foundation) 81,74,030 81,74,030 36,84,400
Depreciation 26,19,608 26,19,608 20,70,809
Total B 56,25,521 122,63,475 17,360 62,42,944 57,52,839 629,88,071 302,43,371 985,10,174 46,90,920 15,76,690 194,28,422 90,31,904 2563,71,687 1777,18,450
C: Surplus/(Deficit) for the year C=(A-B) 19,31,655 7,62,380 3,47,171 (61,99,204) (4,81,395) 66,11,544 34,89,376 (30,35,133) 30,05,568 2,18,973 82,450 (43,44,528) 23,88,860 36,04,576
D: Tax Expenses
D1: Tax for Previous year D1 - - - - - - - - - - - - 1,38,558 22,28,910
D2: Tax for Current year D2 - - - - - - - - - - - - 18,77,500 5,00,000
D2: Deferred tax assets D3 - - - - - - - - - - - - (15,64,956) (3,81,783)
E: Balances E= (C-D) 19,31,655 7,62,380 3,47,171 (61,99,204) (4,81,395) 66,11,544 34,89,376 (30,35,133) 30,05,568 2,18,973 82,450 (43,44,528) 19,37,758 12,57,449
F: Management fee F 46,97,824 26,46,077 - (73,43,901) - - - - - - - - - -
G: Balance transfer to fund G=(E-F) (27,66,169) - - - - - - - - - - (27,66,169) (9,25,339)
H: Balance tranfer to reserves (H=E-F-G) - (18,83,697) 3,47,171 11,44,697 (4,81,395) 66,11,544 34,89,376 (30,35,133) 30,05,568 2,18,973 82,450 (43,44,528) 47,03,927 21,82,788
for INDIAN GRAMEEN SERVICES
Date: June 12, 2014
Place: Hyderabad
Vijay Mahajan
Chairman
Firm Regn.no. 04879N / M.No.019959
V. Nagarajan
31-Mar-13
INDIAN GRAMEEN SERVICES
Particulars Reference
Financial Services
Committed
Project Grants
Management of
Corpus Fund
Agriculture/Busi
ness
Development
Program
Livelihood Financial Innovation Fund (LFIF) Business CorrespondentInstitutional
Development
Program
Admin 31-Mar-14
Mihir Sahana
Managing Director
for V. NAGARAJAN & CO.,
Chartered Accountants
Partner
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES
Note 10 : CONSOLIDATED PROJECT BASED RECEIPTS AND PAYMENTS ACCOUNTS AS ON MARCH 31, 2014
Starting Date Ending date Project Value
Under Execution
Fund Utilized till
March 31, 2013
Balance of Fund
Available on April
01, 2013
Amount Received
as of March 31,
2013
Receipts during
the period
Balance of
Amount
Receivable
Recurring
Expenses
Non Recurring
(CAPEX/ Loans)Total
Over spent,
Pending disbursal
Advance
Received,
pending
Utilization
Total fund
balance
A B C D=(B-C) E F G=(B-E-F) H I J=(H+I) K L=C+J+k M=(E+F-L) N=(E+F-L) O=(M+N)
(I) COMMITTED - FOREIGN AGENCIES
Fundacion Solidaridad Latinoamerica - Promoting Responsible
Soya Supply Chain, with due focus on interests of smallholders01-Jul-09 30-Jun-13 163,61,252 142,93,215 20,68,037 163,61,252 - - - - 142,93,215 - 20,68,037 20,68,037
Fundacion Solidaridad Latinoamerica - Responsible Soy Promotion
in India - 2012-201301-May-12 30-Apr-13 14,50,114 13,11,102 1,39,012 11,12,343 3,37,771 - - - 13,11,102 - 1,39,012 1,39,012
Fundacion Solidaridad Latinoamerica - Farmer Support Program 01-Apr-13 31-Mar-15 150,00,000 - 150,00,000 44,62,819 105,37,181 28,41,240 3,449 28,44,689 28,44,689 - 16,18,130 16,18,130
Fundacion Solidaridad Latinoamerica - pre BCI Project - Phase - I 01-Jun-11 31-May-12 54,28,095 47,18,605 7,09,490 54,28,095 - - - - - 47,18,605 - 7,09,490 7,09,490
Fundacion Solidaridad Latinoamerica - pre BCI Project - Phase - II 01-Jun-12 31-May-13 51,44,150 25,93,260 25,50,890 29,32,832 22,11,318 - 3,64,899 - 3,64,899 29,58,159 - 21,85,991 21,85,991
Fundacion Solidaridad Latinoamerica - BCI Project 01-Apr-13 31-Mar-14 25,91,583 25,91,583 25,91,583 - 26,46,979 13,450 26,60,429 26,60,429 (68,846) - (68,846)
Oxfam India - Project No. 6179-Establishing Community based Microfinance
Institution in Eastern Maharastra01-Oct-08 30-Sep-10 195,37,292 187,48,292 7,89,000 195,37,292 - - - - - 187,48,292 - 7,89,000 7,89,000
RBS Foundation - Revised Framework Enhancing the Livelihoods of Tribal
Populations for Resettled Villages of Melghat Tiger Project01-Jul-10 30-Jun-12 39,57,212 34,88,514 4,68,698 39,57,212 - - 1,686 - 1,686 34,90,200 - 4,67,012 4,67,012
Rabobank Foundation - For technical assistance to 12 Community Based
Micro Finance Institutions (CBMFI's)11-May-09 30-Sep-13 200,84,792 153,93,031 46,91,761 200,84,792 - - 25,41,969 45,600 25,87,569 179,80,600 - 21,04,192 21,04,192
RBS Foundation - Bandhavgarh Project 01-Sep-10 30-Jun-18 197,20,225 87,24,864 109,95,361 96,12,912 14,00,000 87,07,313 28,85,757 5,500 28,91,257 116,16,121 (6,03,209) - (6,03,209)
RBS Foundation - Similipal Project 01-Aug-10 31-Jul-16 312,34,681 157,42,444 154,92,237 161,08,496 34,36,737 116,89,448 45,74,972 13,954 45,88,926 203,31,370 (7,86,137) - (7,86,137)
RBS Foundation - Mangalajodi Ecotourism 01-Apr-12 31-Mar-14 40,36,115 24,99,610 15,36,505 28,06,115 6,00,000 6,30,000 8,01,861 - 8,01,861 33,01,471 - 1,04,644 1,04,644
Shell Foundation -to carry out a pilot first in Maharashtra and in Orissa, to
leverage Basix's customer service centre network01-Jul-12 31-Mar-13 30,50,000 1,81,603 28,68,397 19,39,460 - 11,10,540 3,95,238 3,95,238 5,76,841 - 13,62,619 13,62,619
Water for People - Sanitation as a Business Program in Sheohar (Bihar) 01-May-12 31-Oct-13 40,36,756 17,49,543 22,87,213 22,62,447 17,74,309 - 21,74,680 - 21,74,680 39,24,223 - 1,12,533 1,12,533
Water for People - Sanitation as a Business Program in Sheohar (Bihar) 01-Nov-13 30-Sep-14 23,27,000 23,27,000 10,75,085 12,51,915 10,21,896 10,21,896 10,21,896 - 53,189 53,189
Water for People - Sanitation as a Business Program in Muzaffarpur (Bihar) 01-Mar-14 28-Feb-15 25,05,600 - 25,05,600 - - 25,05,600 84,625 - 84,625 84,625 (84,625) - (84,625)
ICCO & Kerk in Actie (Potato Value Chain in Jharkhand) 01-Oct-12 30-Sep-15 94,43,005 38,39,276 56,03,729 52,69,166 34,75,878 6,97,961 16,86,500 - 16,86,500 55,25,776 - 32,19,268 32,19,268
Arc Finance -to launch BASIX Urja Samruddhi 01-Apr-13 31-Mar-14 30,24,000 - 30,24,000 22,40,864 7,83,136 21,77,990 - 21,77,990 21,77,990 - 62,874 62,874
Total Foreign Fund - Committed (I) 1689,31,872 932,83,359 756,48,513 1074,12,414 236,06,364 379,13,094 242,00,292 81,953 242,82,245 - 1175,65,604 (15,42,817) 149,95,991 134,53,174
(II) COMMITTED - INDIAN AGENCIES
Ministry of Rural Development - Government of India 01-Aug-09 31-Jul-11 80,00,000 78,13,659 1,86,341 80,00,000 - - - - - 78,13,659 - 1,86,341 1,86,341
Small Farmers Agribusiness Consortium - Promotion of Farmer
Producer Organizations01-Aug-11 31-Jul-17 877,50,000 369,68,830 507,81,170 576,49,500 271,67,067 29,33,433 428,30,354 4,08,662 432,39,016 802,07,846 - 46,08,721 46,08,721
Sir Ratan Tata Trust - Supporting livelihoods for Rural Poor in Jharkhand 01-Jan-06 31-Mar-10 135,56,404 131,90,533 3,65,871 135,56,404 - - - - - 131,90,533 - 3,65,871 3,65,871
Sir Ratan Tata Trust - Agrarian Sustainability through Action Research
(AGRASAR) in Vidharbha01-Aug-09 31-Mar-13 263,11,264 217,09,689 46,01,575 263,11,264 56,424 (56,424) 33,31,892 - 33,31,892 250,41,581 - 13,26,107 13,26,107
ITC Rural Development -Comprehensive Livestock Development
Programme, Hoshangabad District (Madhya Pradesh)01-Apr-13 31-Mar-14 36,87,040 36,87,040 17,97,212 18,89,828 15,46,625 4,800 15,51,425 15,51,425 - 2,45,787 2,45,787
ITC Rural Development -Comprehensive Livestock Development
Programme, Hoshangabad District (Madhya Pradesh)- NABARD01-Apr-13 31-Mar-14 29,45,370 29,45,370 10,84,325 18,61,045 19,26,035 4,900 19,30,935 19,30,935 (8,46,610) - (8,46,610)
ITC Rural Development - Development of Dairy Business for Small &
Marginal Farmers, Munger01-Apr-13 30-Sep-13 9,00,000 9,00,000 8,30,621 69,379 7,71,071 4,470 7,75,541 7,75,541 - 55,080 55,080
ITC Rural Development - Development of Agri Business for Small &
Marginal Farmers, Munger01-Apr-13 31-Mar-14 30,48,000 30,48,000 17,90,731 12,57,269 27,65,256 2,39,000 30,04,256 30,04,256 (12,13,525) - (12,13,525)
ITC Rural Development - Promotion of Sustainable Livelihoods Agarbatti
Rolling & Scenting, Munger01-Apr-13 31-Mar-14 20,35,200 20,35,200 67,56,777 (47,21,577) 72,83,910 55,108 73,39,018 73,39,018 (5,82,241) - (5,82,241)
ITC Rural Development - Livelihood Enhancement of Agrarian
Communities, Murshidababd District (West Bengal)01-Apr-13 31-Mar-14 35,96,000 35,96,000 32,86,139 3,09,861 31,91,581 - 31,91,581 31,91,581 - 94,558 94,558
ITC Rural Development -Comprehensive Livestock Development
Programme, Ganjam District (Odisha)01-Jul-13 31-Mar-14 30,00,000 30,00,000 23,06,000 6,94,000 14,62,623 4,61,308 19,23,931 19,23,931 - 3,82,069 3,82,069
ITC Rural Development -Development of Sanitation Services - Munger
Dist,01-Jan-14 31-Mar-14 30,00,000 30,00,000 16,51,938 13,48,062 25,49,060 - 25,49,060 25,49,060 (8,97,122) - (8,97,122)
National Bank for Agricultural and Rural Development -SRI
in Gaya, Muzaffarpur & West Champaran Dist.01-Jun-11 31-Dec-12 102,72,000 43,14,264 59,57,736 30,98,400 - 71,73,600 - - - (12,15,864) 30,98,400 - - -
Sir Dorabji Tata Trust - Soypsi Project 01-Sep-11 31-Aug-12 16,29,000 10,49,842 5,79,158 16,29,000 - - - - - 10,49,842 - 5,79,158 5,79,158
National Bank for Agricultural and Rural Development - Promotion and Credit Linkage of 500 SHGs in 525 village of 9 districts viz,
Khandwa, Harda, Hoshangabad, Betul, Khargone, Chattarpur, Tikamgarh, Panna
& Sagar district of Madhya Pradesh
15-May-09 14-May-12 15,00,000 8,06,760 6,93,240 3,64,200 - 11,35,800 1,18,655 - 1,18,655 (5,61,215) 3,64,200 - - -
National Bank for Agricultural and Rural Development - Farmers Clud
01-Sep-11 31-Aug-13 3,20,000 1,62,222 1,57,778 2,90,000 - 30,000 - - - 1,62,222 - 1,27,778 1,27,778
National Bank for Agricultural and Rural Development - Financial Literacy Programme
01-Jan-13 31-Jul-13 88,200 22,836 65,364 31,500 88,200 (31,500) 49,669 49,669 72,505 - 47,195 47,195
National Bank for Agricultural and Rural Development - Seed business Venture Program
01-Apr-13 31-Mar-14 6,66,900 6,66,900 18,03,640 (11,36,740) 8,08,587 27,500 8,36,087 8,36,087 - 9,67,553 9,67,553
Indian Council of Agricultural Research - Sustainable Farming
System to Enhance and Ensure Livelihood Security of Poor in Purulia, Bankura and
West Midnapore Districts of West Bengal
01-Apr-08 31-Mar-13 60,71,000 44,59,806 16,11,194 39,46,126 1,85,715 19,39,159 3,97,756 - 3,97,756 (7,25,721) 41,31,841 - - -
Jamsetji Tata Trust -Promotion of Diversion Based Irrigation in Gaya 01-Apr-12 31-Mar-13 17,29,000 2,36,213 14,92,787 18,27,577 - (98,577) - - - 2,36,213 - 15,91,364 15,91,364
United Nations Children's Fund - Implementation of Water and
Sanitation Programmes in Ranchi District09-Mar-12 31-Dec-12 14,38,080 12,01,006 2,37,074 11,64,200 - 2,73,880 - - - (36,806) 11,64,200 - - -
(Amount in `)
PARTICULARS
PERIOD OF EXECUTION FUND BALANCE INCOME EXPENDITURE
Total Fund Utilization
CLOSING BALANCEPending Receivable
adjusted to
Reserves and
Surplus
Audited Financial Statement for the year ended March 31, 2014
Starting Date Ending date Project Value
Under Execution
Fund Utilized till
March 31, 2013
Balance of Fund
Available on April
01, 2013
Amount Received
as of March 31,
2013
Receipts during
the period
Balance of
Amount
Receivable
Recurring
Expenses
Non Recurring
(CAPEX/ Loans)Total
Over spent,
Pending disbursal
Advance
Received,
pending
Utilization
Total fund
balance
(Amount in `)
PARTICULARS
PERIOD OF EXECUTION FUND BALANCE INCOME EXPENDITURE
Total Fund Utilization
CLOSING BALANCEPending Receivable
adjusted to
Reserves and
Surplus
United Nations Children's Fund - Demonstration of Institutional
Arrangement for implementation of water and sanitation programmes in East
Singhbhum (three block)
01-Feb-13 31-Dec-13 11,18,000 1,56,930 9,61,070 4,82,000 10,54,270 (4,18,270) 14,83,795 - 14,83,795 16,40,725 (1,04,455) - (1,04,455)
United Nations Children's Fund - Scalling up of Community based
Rural Drinking Water Supply in Jaharkhand, implementation of water and
sanitation programmes in East Singhbhum
14-Feb-14 13-Jan-15 26,26,850 26,26,850 4,62,497 21,64,353 2,86,849 - 2,86,849 2,86,849 - 1,75,648 1,75,648
United Care Development Services - Promoting citizen driven
waste management solutions in Bhopal through a program called "Do not Waste,
Donate your Waste".
01-Jun-12 31-May-14 7,00,000 3,48,490 3,51,510 2,00,000 5,00,000 - 3,51,510 - 3,51,510 7,00,000 - - -
Convergence of Agricultural Intervention in Maharashtra
(CAIM) - For the implementation of Capacity Building Phase along with DPR
Preparation under Krushi Samruddhi
10-Aug-12 09-Mar-13 4,00,000 2,89,518 1,10,482 1,78,050 3,86,000 (1,64,050) 7,71,606 - 7,71,606 (4,97,074) 5,64,050 - - -
Udyogini - To promotion, credit linkage and livelihoods promotion there of in
Khunti District Khunti, Murhu & Kawa Block of Jharkhand State under Scheme for
Promotion of women SHG in LWE affected/backward districts.
01-Sep-12 31-Aug-15 10,00,000 15,509 9,84,491 1,00,000 3,000 8,97,000 29,799 - 29,799 45,308 - 57,692 57,692
Jharkhand State Watershed Mission - implementation of
Integrated Watershed Management Project01-Sep-13 31-Aug-18 5,01,973 - 5,01,973 - 5,01,973 - 7,40,797 39,150 7,79,947 7,79,947 (2,77,974) - (2,77,974)
AVRDC - The World Vegetable Centre - Improving vegetable
production and consumption for sustainable rural livelihoods in Jharkhand and
Panjab
01-Apr-13 31-Dec-13 30,000 30,000 - 30,000 - 30,000 - 30,000 30,000 - - -
The Integrated Tribal Development Agency - Enhancement of
Livelihoods of Scheduled Tribe Families through Rubber Plantation17-Dec-13 17-Dec-19 34,59,500 34,59,500 10,00,000 24,59,500 15,82,457 15,82,457 15,82,457 (5,82,457) - (5,82,457)
Total Indian Fund - Committed (II) 1913,79,781 927,46,107 986,33,674 1188,28,221 527,42,529 198,09,031 743,09,887 12,44,898 755,54,785 (30,36,680) 1652,64,212 (45,04,384) 108,10,922 63,06,538
Grand Total 3603,11,653 1860,29,466 1742,82,187 2262,40,635 763,48,893 577,22,125 985,10,179 13,26,851 998,37,030 (30,36,680) 2828,29,816 (60,47,201) 258,06,913 197,59,712
(III) UNCOMMITED FUND
Swiss Agency for Development Cooperation- Corpus Fund
Income (Rental Income and Interest Income)80,75,724 64,53,939 - 36,22,770 11,85,665 48,08,435 48,08,435 - 97,21,228 97,21,228
Sir Ratan Tata Trust - Corpus Fund (Interest Income) 15,90,258 12,42,549 10,68,150 - 10,68,150 10,68,150 - 17,64,657 17,64,657 -
Action Research and Development Services - General
Fund 10,55,646 17,95,663 15,76,690 - 15,76,690 15,76,690 - 12,74,619 12,74,619
Institutional Development Services General Fund :
(including Other Income) 9,38,362 195,10,872 194,28,422 80,650 195,09,072 195,09,072 - 9,40,162 9,40,162
Livelihood and Micro Finance Promotion Fund (LAMP) 11,28,681 73,44,337 62,42,944 62,169 63,05,113 63,05,113 - 21,67,905 21,67,905
Indian Grameen Services General Fund: (Interest & Other
Income) (14,85,103) 46,93,624 64,12,296 2,64,877 66,77,173 66,77,173 (34,68,652) - (34,68,652)
Indian Grameen Services - Reserves & Surplus 57,73,892 - - - - 30,36,680 30,36,680 - 27,37,212 27,37,212
KBS Bank - Business Correspondent 16,02,983 52,71,444 57,52,839 - 57,52,839 57,52,839 - 11,21,588 11,21,588
Syndicate Bank - Business Correspondent 67,128 337,32,747 302,43,371 - 302,43,371 302,43,371 - 35,56,504 35,56,504
RBL Bank - Business Correspondent - 695,99,615 629,88,071 5,93,106 635,81,177 635,81,177 - 60,18,438 60,18,438
Ford Foundation 36,16,997 130,25,855 149,09,551 - 149,09,551 149,09,551 - 17,33,301 17,33,301
LAMP Fund General 12,47,590 3,58,283 17,360 17,360 17,360 - 15,88,513 15,88,513
Total of Uncommitted Fund - (III) - - 236,12,158 - 1630,28,928 - 1522,62,464 21,86,467 1544,48,931 30,36,680 1574,85,611 (34,68,652) 326,24,126 291,55,474
Developpment International Desjardines 691,96,317 75,57,176 103,23,345 - 103,23,345 103,23,345 - 664,30,148 664,30,148
Grand Total - IV=(I+II+III) 3603,11,653 1860,29,466 2670,90,662 2262,40,635 2469,34,997 577,22,125 2610,95,988 35,13,318 2646,09,306 - 4506,38,772 (95,15,853) 1248,61,188 1153,45,335
for INDIAN GRAMEEN SERVICES
Date: June 12, 2014
Place: Hyderabad
Vijay Mahajan
Chairman
Firm Regn.no. 04879N / M.No.019959
for V. NAGARAJAN & CO.,
Chartered Accountants
V. Nagarajan Mihir Sahana
Partner Managing Director
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES Annexure - A
(Financials related to Business Correspondent for Financial Inclusion)
(Amount in `)
BALANCE SHEET AS AT 31-Mar-14 31-Mar-13
Note
I. EQUITY AND LIABILITIES
Shareholders' funds
(a) Reserves and surplus 1.1 140,95,260 46,36,115
140,95,260 46,36,115
Current liabilities
(a) Trade payables 1.2 8,33,749 60,87,031
(b) Other current liabilities 1.3 599,74,696 282,16,692
(c ) Due for collection (receivable from micro borrowers RBL Bank as
business correspondent)- per contra7917,97,776 -
8526,06,221 343,03,723
TOTAL 8667,01,481 389,39,838
II. ASSETS
Non-Current assets
(a) Fixed assets 1.4
i) Tangible assets 2,11,627 12,33,658
(b) Long-term loans and advances 1.5 4,52,480 1,19,800
(c ) Due for collection (payable from micro borrowers RBL Bank as
business correspondent)- per contra7917,97,776 -
7924,61,883 13,53,458
Current assets
(a) Trade receivables 1.6 192,62,307 66,23,908
(b) Cash and cash equivalents 1.7 79,90,384 33,56,138
(c) Other current assets 1.8 469,86,907 276,06,334
742,39,598 375,86,380
TOTAL 8667,01,481 389,39,838
As per our report attached
for V. NAGARAJAN & CO.,Chartered Accountants
(V. NAGARAJAN) Vijay Mahajan (Chairman)
Partner
Firm Regn.No. 04879N / M.No.019959
Mihir Sahana (Managing Director)
Hyderabad,
for and on behalf of Board of
Directors
Audited Financial Statement for the year ended March 31, 2014
STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED
For the Year Ended
March 31, 2014
For the Year Ended
March 31, 2013
REVENUE:
Revenue from operations 1.9 1081,67,830 420,59,290
Other income 1.10 7,85,023 -
TOTAL 1089,52,853 420,59,290
EXPENDITURE:
Employee benefit expense 1.11 589,99,201 234,31,883
Operation and other expenses 1.12 398,45,181 257,37,366
Finance cost 1,39,899 -
Depreciation and amortisation expense 5,09,428 3,62,267
TOTAL 994,93,709 495,31,516
Profit before tax for business correspondent 94,59,144 (74,72,226)
As per our report of attached
for V. NAGARAJAN & CO.,
Chartered Accountants
Vijay Mahajan (Chairman)
(V. NAGARAJAN)
Partner
Firm Regn.No. 04879N / M.No.019959 Mihir Sahana (Managing Director)
Hyderabad,
July 31, 2014
To be read along with the accompanying notes form an integral part of these financial statements.
for and on behalf of Board of Directors
INDIAN GRAMEEN SERVICES
(Amount in `)
Audited Financial Statement for the year ended March 31, 2014
1) Notes on accounts
1.1 Reserves and surplus
31-Mar-14 31-Mar-13
A: Surplus in statement of profit and loss acccount
Opening balance 34,02,457 9,33,134
Additions during the year 94,59,144 (74,72,226)
Assets/depreciation (as per contra) (46,190) 5,45,060
Assets/depreciation (as per contra)- Deletion 10,68,221 -
Transfer to capital grant/subsidy 93,96,489
138,83,633 34,02,457
B: Assets acquisition fund (net of depreciation)
Opening balance 12,33,658 17,78,718
Assets/depreciation (As per contra) 46,190 (5,45,060)
Assets/depreciation (as per contra)- Deletion (10,68,221) -
2,11,627 12,33,658
C: Capital grant/subsidy
Opening balance of Shore Bank International Project 93,96,489
Less: Capital/revenue expenditure (93,96,489)
- -
Total 140,95,260 46,36,115
1.2 Trade payable
31-Mar-14 31-Mar-13
Sundry Creditors 8,33,749 60,87,031
Total 8,33,749 60,87,031
1.3 Other current liabilities
31-Mar-14 31-Mar-13
Statutory dues 2,48,938 3,19,999
Payable to staff 51,12,988 6,99,212
BCSA float deposit 447,62,389 233,79,219
Income received in advance 6,99,999 -
Payable to related parties
BASIX Sub-K iTransaction Ltd 91,50,382 38,18,262
Total 599,74,696 282,16,692
1.5 Loan term loans and advance
31-Mar-14 31-Mar-13
Telephone and ret deposits 4,52,480 1,19,800
Total 4,52,480 1,19,800
1.6 Trade receivable
31-Mar-14 31-Mar-13
Outstanding for less than six months
Unsecured, considered good
Debts due from related parties: 192,62,307 66,23,908
Total 192,62,307 66,23,908
1.7 Cash and cash equivalents
31-Mar-14 31-Mar-13
Balance with banks
- in current accounts 41,12,783 14,46,349
41,12,783 14,46,349
- in deposit accounts
Other project fund 38,77,601 19,09,789
38,77,601 19,09,789
Total 79,90,384 33,56,138
INDIAN GRAMEEN SERVICES
(Amount in `)
Audited Financial Statement for the year ended March 31, 2014
As on
April 01, 2013
Additions during
the year
Sale / Transfer/
Adj. during the
Year
As on
March 31, 2014
As on
April 01, 2013 For the Year
Sale / Transfer/
Adj. during the
Year
As on
March 31, 2014
As on
March 31, 2014
As on
March 31, 2013
I Furniture and Fixtures 18,79,427 2,43,755 18,56,072 2,67,110 10,94,648 3,05,372 11,42,315 2,57,705 9,405 7,84,779
II Professional Equipment 19,81,994 2,23,113 19,53,594 2,51,513 17,76,562 1,25,607 18,10,449 91,720 1,59,793 2,05,432
III Professional Equipment (others) 2,10,250 16,677 1,95,050 31,877 1,05,767 17,546 1,10,330 12,983 18,894 1,04,483
III Office Equipment 2,06,988 72,073 1,99,850 79,211 68,024 60,903 73,251 55,676 23,535 1,38,964
42,78,659 5,55,618 42,04,566 6,29,711 30,45,001 5,09,428 31,36,345 4,18,084 2,11,627 12,33,658
Notes: -
for V. NAGARAJAN & CO.,Chartered Accountants
Hyderabad, Vijay Mahajan (Chairman)
July 31, 2014
(V. NAGARAJAN)
PartnerFirm Regn.No. 04879N / M.No.019959 Mihir Sahana (Managing Director)
INDIAN GRAMEEN SERVICES
Notes to the Audited Financial Statement for the year ended March 31, 2014
Note 1.4 : Fixed Assets
(Amount in `)
S. N. Name of Assets
G R O S S B L O C K D E P R E C I A T I O N N E T B L O C K
i) Depreciation has been provided on written down value method at the rates prescribed by Schedule XIV of the Companies Act, 1956
ii) Individual assets acquired for Rs. 5,000 or less are fully depreciated in the year of acquisition.
As per our report of even date
for and on behalf of Board of Directors
Others:
Total
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES
(Amount in `)
1.8 Other current assets
31-Mar-14 31-Mar-13
Advances to staff, others & projects 5,54,619 -
Interest accrued on term deposits and investments 4,69,036 1,62,997
Transaction receivable from BCSA's 448,75,675 212,30,275
Inter Office Balance 7,64,427 62,13,062
Unreconciled amount of RBL Bank 3,23,150 -
Total 469,86,907 276,06,334
1.9 Revenue from operations
31-Mar-14 31-Mar-13
Revenue from development operations
- Business correspondent for financial inclusion 1081,67,830 420,59,290
Total 1081,67,830 420,59,290
1.10 Other Income
31-Mar-14 31-Mar-13
Interest from investments and term deposits 3,49,047 -
Miscellaneous income 4,35,976 -
Total 7,85,023 -
1.11 Employee benefits expenses
31-Mar-14 31-Mar-13
Salaries, wages and bonus 542,94,680 217,11,681
Contributions to provident and other funds 36,24,600 15,57,237
Staff welfare expenses 5,69,445 1,62,965
Gratuity 5,10,476 -
Total 589,99,201 234,31,883
1.12 Other operating expenses
31-Mar-14 31-Mar-13
Program expenditure - 46,19,728
Consultancy expenses - -
BASIX Sub-K iTransaction Ltd 299,67,273 103,74,724
Mukund Sawant 3,43,000 1,85,500
Travel and conveyance 29,21,948 36,47,977
Service charges to livelihood service providers 14,16,715 18,85,248
Rent 27,54,084 15,59,843
Office maintenance expenses 6,80,918 7,99,915
Postage and telecommunications 5,49,620 19,29,000
Books, printing and stationery 3,65,215 2,76,623
Meeting expenses 1,69,274 2,38,660
Training expenses 86,568 1,200
Rates and taxes 42,502 -
Payments to the auditor
- as auditor 1,68,540
- for reimbursement of expenses 48,844 5,056
Repairs and maintenance 21,720 2,13,892
Sundry advances written off 2,08,696 -
Other expenses 1,00,264 -
Total 398,45,181 257,37,366
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES
(Amount in `)
2) Supplementary information:
2.1 Business Correspondent for Financial Inclusion:
2.1.1
No of Branches
/BCSA outlet
No of
Deposit/
Savings
Accounts
Deposit/
Savings
Amount in
lakhs
No of
outstanding
credit
account
Disbursement
Amount in
lakhs
No of Field
Staff
1134 318823 250 - 137
33 24811 1420 65
43 122809 17,311 249
31 49900 8,923 175
1241 343634 1670 172709 26234 626
2.1.2
2.1.2.1
2.1.2.2 RBL Bank (RBL) :
a)
b)
c)
d)
e)
f)
g)
h)
Amount Dr/Cr
7,836.32 Dr
6,99,999 Cr
3,23,150 Dr
118,98,283 Dr
7917,97,776 Cr
These accounts pertain to Business Correpondent services provided by IGS to the following banks as on March 31, 2014
Pune Region
Name of the Bank
Syndicate Bank
RBL Bank
Kolhapur Region
Krishna Bhima Samruddhi Local Area
Bank Ltd (as on September 30, 2013)
Total
Account payable
Due for collection
(from Micro Borrower
as BC)
Advance accountBusiness Transaction
account
Not confirmed
Confirmed
Not confirmed
Confirmed
Balance unadjusted from mobilisation
On account excess recoveries Services bill due for the month of March
2014
Business Correspondent operations
The company is extending Financial Inclusion services as a Business Correspondent of Krishna Bhima Samruddhi Local Area Bank Ltd
(KBSLAB), RBL Bank and Syndicate Bank, in tune with its objects for promotion of Financial Inclusion Services to the poor and less
privileged in the unbanked areas of India, under various commercial banks. This is as per RBI circular no. RBI/2011-12/100
DBOD.NO.BL.BC.33/22.01.001/2011-12, dated July 01, 2011 and subsequent circulars issued by RBI from time to time.
Started acting as a BC from April 2013/ Oct 2013 in Kolahpur/ Pune Regions respectively; and is dealing with only loans. In
Pune Region, the company operates with 12 branches and acts as a Banking Correspondent to distribute micro loans of RBL
to groups of women entrepreneurs in rural and semi urban areas and recover the same on behalf of RBL for onward
payment.
Krishna Bhima Samruddhi Local Area Bank Ltd (KBS LAB):
Was acting as a BC and since ceased to be operating from October 2013; and was dealing with savings and loans.
All the lending and recoveries (along with interest and other charges) is routed through the books of IGS pool account and
periodically reconciled with RBL.
Bank Account No:
40900075238 ConfirmedRegular banking transaction (pool a/c)
IGS being a company registered under section 25 of the Companies Act, 2013/1956 is authorised by RBI to engage in such
activities.
Account
As the loan assets are held and owned by RBL, it is not recognised in the books of the company. The loan recoverable with
interest and charges from the women micro borrowers and payable to RBL is stated as liability and asset, per contra as
intermediary agent, in its financial statements.
The company is maintaining books of accounts till the first point of business, viz with the borrowers at Centre Meetings,
conducted and attended by Customer Service Representatives (CSR) of the company, for cash control and effective
management of operations; however, the borrower based data both personal as well financial is maintained by RBL, in is
central servers for interest calculations and monitoring of non-performance
The company has an internal control and internal audit system and is strengthening it to commensurate with the risk
associated with the growing operations and size and scale of business
StatusDescription
The fee received and expenses incurred in execution of its status as Business Correspondence is recognised in the books of
accounts, under appropriate heads.
Various balances due to/due from, RBL Bank, on account of being "Business Correspondent", are grouped under heads as
below:
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES
(Amount in `)
2.1.3 Term deposits with Syndicate Bank:
2.1.3.1
2.1.3.2
2.1.3.3
2.1.3.4
2.1.3.5
for V. NAGARAJAN & CO.,
Chartered Accountants
Hyderabad,
July 31, 2014
V. Nagarajan Vijay Mahajan Mihir Sahana
Partner Chairman Managing Director
Firm Regn.no. 04879N / M.No.019959
for and on behalf of Board of Directors
Upon release of the lien, the Term deposits will be available to the Company as security against float balances made
available by the company to BCSAs for operations between the customers of the bank and the bank.
Till such time the float amount made available to such BCSAs which aggregates to Rs. 8.40 lacs remains unsecured.
The Bank has a lien on the term deposits to the extent of loan advanced by it to BCSAs on purchase of equipment by BCSA.
In respect of its Business Correspondent agreement with Syndicate Bank and operationalization thereof, the Company holds
term deposit certificates issued by bank in the joint name of Business Correspondent Service Agent’s [BCSA’s] and the
Company.
These deposits are entirely funded by BCSAs and not reflected in the books of the Company.
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES Annexure - B
(Financials related to Livelihood and Microfinance Promotion Fund (LAMP Fund) operations)
(Amount in `)
BALANCE SHEET AS AT 31-Mar-14 31-Mar-13
Note
I. EQUITY AND LIABILITIES
(a) Reserves and surplus 1.1 80,82,859 84,63,575
80,82,859 84,63,575
Non-Current liabilities
(a) Long-term borrowings 1.2 921,10,000 921,10,000
Current liabilities
(a) Committed project based grants 1.3 664,30,148 691,96,317
(b) Other current liabilities 1.4 206,62,906 121,58,275
870,93,054 813,54,592
TOTAL 1872,85,913 1819,28,167
II. ASSETS
(a) Long term loans and advances 1.5 1326,08,070 1106,18,852
1326,08,070 1106,18,852
Current assets
(a) Cash and cash equivalents 1.6 505,06,144 669,22,559
(b) Other current assets 1.7 41,71,699 43,86,756
546,77,843 713,09,315
TOTAL 1872,85,913 1819,28,167
As per our report attached
for V. NAGARAJAN & CO.,Chartered Accountants
(V. NAGARAJAN) Vijay Mahajan (Chairman)
Partner
Firm Regn.No. 04879N / M.No.019959
Hyderabad, Mihir Sahana (Managing Director)
July 31, 2014
The accompanying notes form an integral part of these financial statements.
for and on behalf of Board of
Directors
Audited Financial Statement for the year ended March 31, 2014
(Amount in `)
STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED March 31, 2014 March 31, 2013
Note
REVENUE:
Revenue from operations 1.8 230,94,517 209,23,059
Other income 1.9 52,34,438 78,45,865
TOTAL 283,28,955 287,68,924
EXPENDITURE:
Operation and other expenses 1.10 127,44,673 131,13,914
Employee benefit expense 1.11 41,89,305 27,66,485
Loss on Foreign exchange fluctuation expense
- Current year 48,08,000 36,84,400
- Previous year 33,66,030 -
Provision/(reversal of provision) for non-performing assets 35,50,459 (23,26,042)
Bad debts written-off 18,85,500 61,36,328
Finance costs 1.12 9,31,872 9,32,394
TOTAL 314,75,839 243,07,479
Profit before tax (31,46,884) 44,61,446
As per our report of attached
for V. NAGARAJAN & CO.,Chartered Accountants
Vijay Mahajan (Chairman)
(V. NAGARAJAN)
Partner
Firm Regn.No. 04879N / M.No.019959
Mihir Sahana (Managing Director)
Hyderabad,
July 31, 2014
The accompanying notes form an integral part of these financial statements.
INDIAN GRAMEEN SERVICES
for and on behalf of Board of Directors
Audited Financial Statement for the year ended March 31, 2014
1)
1.1 Reserves and surplus
March 31, 2014 March 31, 2013
Opening Balance 84,63,575 30,76,790
Additions during the year (31,46,884) 44,61,446
Transfer to DID Fund (note 2.3) 27,66,169 9,25,339
Total 80,82,859 84,63,575
1.2 Long-term borrowings
March 31, 2014 March 31, 2013
Unsecured
The Ford Foundation, New York City, USA # 921,10,000 921,10,000
Total 921,10,000 921,10,000
1.3 Committed project based grant
March 31, 2014 March 31, 2013
Developpment international Desjardins
Opening Balance 691,96,317 701,21,656
Less: Transferred from Statement of profit & loss account [note 2.1] (27,66,169) (9,25,339)
Total 664,30,148 691,96,317
1.4 Other current liabilities
March 31, 2014 March 31, 2013
Payable to staff 4,90,077 -
Advance to Others - 43,263
Interest Accrued but not due on borrowings 6,77,351 7,93,564
Exchange fluctuation reserve 194,95,478 113,21,448
Total 206,62,906 121,58,275
1.5 Long term loans and advances
March 31, 2014 March 31, 2013
Unsecured, considered good
TDS recoverable 35,40,195 25,21,045
Other loans and advances
Loan to NGOs/CBOs/Co-operatives/Producer Company [LAMP Fund]
- Unsecured and considered good 1203,12,917 1072,61,590
- Unsecured and considered doubtful 156,01,687 41,32,487
Less: Provision for non-performing assets (68,46,729) (32,96,270)
Total 1326,08,070 1106,18,852
1.6 Cash and cash equivalents
March 31, 2014 March 31, 2013
Balance with banks
- in current accounts 135,43,383 29,52,439
135,43,383 29,52,439
- in deposit accounts
Developpment international Desjardins - 181,45,129
Ford Foundation 172,36,780 333,41,357
Ford Foundation - Exchange fluctuation reserve 156,50,321 87,25,875
IGS - LAMP fund 40,75,660 37,57,759
369,62,761 639,70,120
Total 505,06,144 669,22,559
INDIAN GRAMEEN SERVICES(Amount in `)
Notes on accounts
Loan availed from Ford Foundation, USA, rate of Interest 1% and Exchange Fluctuation Rate 4%. Repayable in 4 equal
installments commencing from May 29, 2020. As per the loan agreement, at the end of the each anniversary (May 31), Company
shall deposit into Exchange Rate Fluctuation Account, in US$ equivalent of an amount which is four percent of the loan
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES(Amount in `)
1.7 Other current assets
March 31, 2014 March 31, 2013
Interest Accrued on Deposits with banks 14,00,829 18,87,993
Interest Accrued on Loans to CBO/NGOs 8,37,709 7,94,205
Receivable from IGS (Inter office Balance) 19,33,161 17,04,558
Total 41,71,699 43,86,756
1.8 Revenue from operations
March 31, 2014 March 31, 2013
Management Fees (as per contra) 73,43,901 76,06,506
Interest on loans to CBO/NGOs 157,50,616 133,16,553
Total 230,94,517 209,23,059
1.9 Other income
March 31, 2014 March 31, 2013
Interest from investments and term deposits 46,08,026 69,48,182
Interest on savings bank account 94,668 -
Retunable Grant 4,19,408 8,92,881
Miscellaneous income 1,12,336 4,802
Total 52,34,438 78,45,865
1.10 Other operating expenses
March 31, 2014 March 31, 2013
Program expenditure: Operating Grant 32,77,060 22,24,500
Consultancy expenses - 16,96,938
Management Fees (as per contra) 73,43,901 76,06,506
Travel and conveyance 16,18,761 14,33,394
Rent 1,80,000 4,394
Office maintenance expenses 70,401 583
Postage and telecommunications 88,136 78,914
Books, printing and stationery 27,075 12,111
Meeting expenses 69,317 16,004
Rates and taxes 1,700 1,250
Payments to the auditor
- for management services 47,188 26,369
Repairs and maintenance 11,114 -
Sundry advances written off 10,020 12,951
Total 127,44,673 131,13,914
1.11 Employee benefits expenses
March 31, 2014 March 31, 2013
Salaries, wages and bonus 39,76,601 26,11,610
Contributions to provident and other funds 1,75,854 1,53,356
Staff welfare expenses 1,349 1,519
Gratuity 35,501 -
Total 41,89,305 27,66,485
1.12 Finance cost
March 31, 2014 March 31, 2013
Interest on long term borrowings 9,21,100 9,21,100
Bank charges 10,772 11,294
Total 9,31,872 9,32,394
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES(Amount in `)
2) Supplementary information:
2.1 Livelihood financial services
During the year Cumulative
27 192
37 190
80
91,165 3,95,090
97,665 3,77,090
1,35,914
15 178
300 43,225
2,860 36,217
2.2
Provision in %
of loan
outstanding
10%
20%
100%
100%
2.3
As at 31 March 2014
Classification
criteria
No. of
accounts
Amount
Outstanding
Provision
0-180 days 71 1251,45,418 4,83,250
181-365 days 4 55,07,139 11,01,432
Above 365 5 52,62,047 52,62,047
80 1359,14,604 68,46,729
Loan to NGOs/CBOs/Co-operatives/Producer Company [LAMP Fund]
Up to 6 Months Based on quarterly assessment
More than 6 months less than 12 months
More than 12 months
Identified Loss Assets and Assets with an age of 12 months after 100%
provisioning
Based on proposal from LAMP Fund
Manager for write off with details on
efforts and reasoning for such write
off with due approval from LAMP
Fund Committee.
Overdue Remarks
Development Support to CBO/NGOs (Returnable and Operating Grants):
The Livelihood and Microfinance Promotion Fund (LAMP Fund) was conceptualized and started with a contribution of Rs.2
million from IGS in the year 2001. Later Développement International Desjardins, Canada (DID) has created a fund from the loan
repayment of Bhartiya Samruddhi Finance Limited along with the interest by assigning the same to Indian Grameen Services.
The overall goal of the LAMP Fund is to contribute towards improvement in livelihood situation in rural India, especially for the
disadvantaged sections of the society, through developing products and supporting financial services to small NGO microfinance
institutions (NGO-MFIs), as well as community owned microfinance institutions (CO-MFIs). The fund statement is shown in Note
2.3 of Committed project Based Grant.
In 2008, Ford Foundation supported through a long term loan of Rs. 92 million towards expansion of the LAMP fund and with
the mandate of promoting large number of small & medium livelihood promoting institution in the different states of India.
Development Support Disbursed (`. ‘000’s)
Particulars
Loans:
No. of Loans Sanctioned
Loans Outstanding (`. ‘000’s)
Summary of Activities as at March 31, 2014
No. of Loans Disbursed (Including Previous Sanction)
Policy on provisioning for loans:
The Policy, in respect of provision for loan losses, is designed to be higher than those prescribed under various statutory
directives from time to time, since the credit provided from the Fund is an un-secured one, as well as, credit is extended to
nascent NGO-MFIs and CO-MFIs with an aim to hit the targeted poor families.
Value of Development Support Sanctioned (`. ‘000’s)
No. of active clients
Amount of Loans Sanctioned (`. ‘000’s)
Loans Disbursed (`. ‘000’s)
No. of Clients
Asset classification
Standard assets
Sub-standard assets
Doubtful assets
Non-performing assets
Total
Loan to NGOs/CBOs/Co-operatives/Producer Company portfolio has been classified as per LAMP Fund Committee policy. The
detials are as follows:
Audited Financial Statement for the year ended March 31, 2014
INDIAN GRAMEEN SERVICES(Amount in `)
As at 31 March 2013
Classification
criteria
No. of
accounts
Amount
Outstanding
Provision
0-180 days 64 1079,15,771 7,40,414
181-365 days 3 11,53,068 2,30,618
Above 365 4 23,25,238 23,25,238
71 1113,94,077 32,96,270
for V. NAGARAJAN & CO.,
Chartered Accountants
Hyderabad,
July 31, 2014
V. Nagarajan Vijay Mahajan Mihir Sahana
Partner Chairman Managing Director
Firm Regn.no. 04879N / M.No.019959
for and on behalf of Board of Directors
Doubtful assets
Total
Asset classification
Standard assets
Non-performing assets
Sub-standard assets
Audited Financial Statement for the year ended March 31, 2014