v. nagarajan & co., finanical for 2013-14.pdf · the company’s operations broadly divided...

#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.,


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.,


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


Vijay Mahajan (Chairman)

(V. NAGARAJAN)

Partner


Mihir Sahana (Managing Director)

Hyderabad,

July 31, 2014



for and on behalf of Board of Directors


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:



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.



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

-



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


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:



(V. NAGARAJAN)

Partner

Firm Regn.No. 04879N / M.No.019959 Mihir Sahana (Managing Director)

Hyderabad,

July 31, 2014


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


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



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


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



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



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



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



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


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

-



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


1,45,000

- Rent and reimbursement of

expenses

-

9,000

Rent and reimbursement of

expenses

Bhartiya Samruddhi Finance

Limited


expenses

BASIX Municipal Waste Ventures

Ltd

9,000

13,31,342


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


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



15,00,000

Entity in which key management personnel have significant influence


Bhartiya Samurrdhi Investment

and Consulting Services Ltd

[BASICS Ltd]

Mr. Mihir Sahana

Nature of transaction


BASIX SUB-K iTransactions Ltd

4,28,500

9,000

299,67,273


expenses

51,06,452

94,70,448


expenses

Support rendered for Syndicate

Bank as a Business

Correspondent


expenses

Citran Consulting Limited

Shamil Milk Products Ltd -

- 9,000

BASIX Consulting and Training

Services Ltd

3,40,226


expenses


1,00,000


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





BASIX Consulting and Training Services limited Entity in which Directors have significant influence

Bhartiya Samruddhi Finance Limited



Krishna Bhima Samruddhi Local

Area Bank Limited

BASIX Academy for Building

Lifelong Employability


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


Business Correspondent

Services Fees

52,71,245


expenses

20,000


expenses

-

4,59,025

3,40,356

-

Key management Personnel

Consultancy fee/Training

Key management personnel

140,14,709



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


Managing Director

Mihir Sahana


V. Nagarajan

for V. NAGARAJAN & CO.,

Vayam Renewable Ltd -

6,08,860

Shamil Milk Products Ltd 3,372

3,372

(40,469)


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 Information Infrastructure Services Ltd


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.


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


V. Nagarajan

31-Mar-13


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



Partner



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


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


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


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




V. Nagarajan Mihir Sahana

Partner Managing Director


INDIAN GRAMEEN SERVICES Annexure - A

(Financials related to Business Correspondent for Financial Inclusion)

(Amount in `)


Note


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




Partner



Hyderabad,


Directors


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:


Other income 1.10 7,85,023 -

TOTAL 1089,52,853 420,59,290

EXPENDITURE:



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)





(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.



(Amount in `)


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


Debts due from related parties: 192,62,307 66,23,908

Total 192,62,307 66,23,908


31-Mar-14 31-Mar-13

Balance with banks

- in current accounts 41,12,783 14,46,349

41,12,783 14,46,349


Other project fund 38,77,601 19,09,789

38,77,601 19,09,789

Total 79,90,384 33,56,138


(Amount in `)


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: -


Hyderabad, Vijay Mahajan (Chairman)

July 31, 2014

(V. NAGARAJAN)

PartnerFirm Regn.No. 04879N / M.No.019959 Mihir Sahana (Managing Director)


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


Others:

Total



(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 -


- 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



(Amount in `)


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:



(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



Hyderabad,

July 31, 2014

V. Nagarajan Vijay Mahajan Mihir Sahana

Partner Chairman Managing Director



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.


INDIAN GRAMEEN SERVICES Annexure - B

(Financials related to Livelihood and Microfinance Promotion Fund (LAMP Fund) operations)

(Amount in `)


Note


(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




Partner


Hyderabad, Mihir Sahana (Managing Director)

July 31, 2014



Directors


(Amount in `)

STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE YEAR

ENDED March 31, 2014 March 31, 2013

Note

REVENUE:


Other income 1.9 52,34,438 78,45,865

TOTAL 283,28,955 287,68,924

EXPENDITURE:



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




(V. NAGARAJAN)

Partner



Hyderabad,

July 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


TDS recoverable 35,40,195 25,21,045

Other loans and advances


- 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


March 31, 2014 March 31, 2013

Balance with banks

- in current accounts 135,43,383 29,52,439

135,43,383 29,52,439


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



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


- 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




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


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


Total

Loan to NGOs/CBOs/Co-operatives/Producer Company portfolio has been classified as per LAMP Fund Committee policy. The

detials are as follows:



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



Hyderabad,

July 31, 2014

V. Nagarajan Vijay Mahajan Mihir Sahana

Partner Chairman Managing Director



Doubtful assets

Total

Asset classification

Standard assets


Sub-standard assets


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