Rang De Annual Report 2011 12

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[Type text]

Audited

Financial

Statements

2011-12

Contents

2-8

Report of Board of Trustees

9

Auditors report

10-18

Audited Financial statements

19-22

Notes to the Accounts &

Significant Accounting policies


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Report of Board of Trustees

RangDe.Org2011-12

The year 2011-12 began with an inspiring moment for the entire nation. Our Men in Blue did us proud

by bringing the World Cup home. Rang Des fundraising received a big boost with the launch of our

biggest online campaign - The Rang De world cup fever. Thus began our journey into the financial year.

Having successfully completed 2 financial years, we had put behind us the microfinance crisis with a

strong resolve to support our field partners in every way possible. Rang Des focus for 2011-12 has been

to strengthen the foundation of the organization in all areas. Our learning from previous years has

helped us in fine tuning the model. The organisations aim is to scale up the operations meaningfully

and to strive hard to delight our social investors with their Rang De Experience. These are some of the

changes the organisation has brought about in the last financial year:

Corporate Governance:

Rang De is governed by a formal board of trustees who oversee the operations of the organization and

also support the management team. The Board of Trustees has been meeting periodically and is closely

monitoring the organisations progress. The board meetings have been a great platform for setting the

agenda and prioritizing focus areas for the management team. The details of trustees are as follows:

Name Occupation

Area of

competency

Meetings

attended

Prof. P Sudarshan Former distinguished Professor of Entrepreneurship at Great

Lakes Institute of Management.

Member of the Board of Governors at Vittal Mallya Scientific

Research Foundation (VMSRF)

President of IIM-Ahmedabad Alumni Association, Bangalore

Founder-President of TDICI-India's First Venture Capital

Co(now ICICI ventures Ltd).

Entrepreneurship,

Finance,

Management

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Mr. A Ramanathan Former Chief General Manager of the Microcredit Innovations

Department (MCID).

Former Director of Management Studies at Sri Krishna college

of Engineering & Technology, Coimbatore

Microfinance,

Banking 1/2

Ms. Smita Ram Co-Founder and Managing Trustee Social audits,

Governance2/2


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Rang De Advisory group:

There is a growing need for organizations like Rang De to be more effective and productive. One the

many ways to achieve this is by broadening and strengthening the constitution of advisory group. The

Rang De advisory group consists of business leaders who guide Rang De on various aspects ranging from

operations and technology to marketing.

Resource Mobilisation:

With the world cup fever being a huge success, the organization was able to pull off a series of online

and offline campaigns to create awareness, drive social investors and raise funds for the communities

we work with. The world cup fever helped the organization raise Rs.10 Lakhs as social investments.Similarly the Christmas Campaign helped in reaching out to social investors. A combination of creativity

and dedication is required to mobilize funds and people for a cause. The grand finale in resource

mobilization came with hosting Robin Sharma for a leadership seminar in Bangalore. A fundraiser of

this sort is perhaps a once in a life time opportunity for non-profits. It was Rang Des privilege to host

the bestselling author and leadership Guru. Rang De was able to bring more than 900 people across

India for the event.

Audits & Review:

A sharp focus on audits and reviews of our field partners marked the year for the operations team.

Regular audits and operational reviews of our field partners in addition to handholding them has helped

the team identify only those field partners that have been doing excellent work and in helping them

scale up their operations. The team now follows an internal calendar for audit of field partners. These

audits cover not only financial records but also operations and processes being followed by the

organisation. Recommendations are made to the field partners wherever required and compliance is

monitored.

Transparency:

Since inception, Transparency has been one of the fundamental aspects for Rang De. Our efforts have

been aimed at ensuring that this penetrates all the way to the end borrower. We have ensured thatinterest rates charged to the borrower have been published against every loan. Both the flat rates and

the APR rates are displayed. Our field partners cannot charge any hidden charges and if there is good

enough reason to charge a processing fee, the reason as well as the charges need to be disclosed by our

field partners. The field partners are regularly audited and their operations reviewed. A summarized

report of these audits will soon be available. Social investors and chapter members have also joined

Rang De team. Social investors have independently visited field areas for borrower evaluations.


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In addition to the updates on disbursals and repayments, we also send a statement of social investments

on a monthly basis. A record of all transactions made by a social investor on Rang De is available on login

from the dashboard. A detailed statement of social investments is also available on request from the

team. This is being automated and detailed reports will be made available online.

Statutory registrations

Following are the particulars of registration of the organization with statutory authorities.

S.No. AuthoritySection and Act under

which registeredRegistration details

Date of

registration

1. Registrar of Trusts Indian Trust Act, 1882 BNG(U)-JPN/170/2007-2008 January 8th, 2008

2. Director of Income

Tax (Exemptions),

Bangalore

Section 12A of Income

Tax Act, 1961

DIT(E)BLR/12A/R-275/--/ITO(E)-2/

Vol 2008-2009

September 9th

,

2008

3. Director of Income

Tax (Exemptions),

Bangalore

Approval under section

80G of Income Tax Act,

1961

DIT(E)BLR/80G/61/AABTR2636Q/

ITO(E)-2/Vol 2009-2010

November 11th

,

2008

4. Ministry of Home

Affairs,

Government of

India

Registration under

section 11(1) of Foreign

Contribution

(Regulation) Act, 2010094421494

April 19th

, 2012

5. Income tax

department

- Permanent Account number (PAN)

and Tax Deduction Account

number (TAN)

-


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Awards & Recognition:

We won our first award in December 2011. Rang De was awarded the Manthan Digital Award. Rang Dewent on to become the first runner up in the IAMAI digital award for best use of internet for social good.

The icing on the cake came with Ramakrishna N.K Co-founder and CEO of Rang De being elected to the

Ashoka fellowship.

We are looking forward to some exciting partnerships and launching new loan products in this financial

year. While our technology team is working on creating an engaging experience and enhancing the user

experience, our operations team is focusing on deepening our impact on the ground. We are also

working on building process frameworks to ensure that at scale, our impact still remains meaningful. As

always we look forward to your continued support in helping Rang De scale newer heights and in

increasing the impact of our work.

Rang Des growth in numbers:

Year wise social investments raised

2009-10 2010-11 2011-12

108.75

253.80

317.99

139.86

393.67

711.66

In the year Cumulative

(In Lakhs)


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Number of social investors

State wise distribution of funds raised during the financial year 2011-12

2009-10 2010-11 2011-12

925

1580

882

1107

2687

3569

In the year Cumulative

17.06

5% 29.73

9%3.50

1%

39.92

13%

9.66

3%

48.87

16%3.30

1%

85.36

27%

7.20

2%

73.41

23%

Bihar

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Manipur

Orissa

Tamil Nadu

West Bengal

(In Lakhs)


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State wise distribution of funds raised since inception

Rang Des Field Partnerships

32.35

4%27.00

4%18.60

2% 46.73

6%16.88

2%

111.81

14%

33.32

4%

135.29

17%12.97

2%

200.83

25%

1.50

0%

31.58

4%

4.34

1%

118.59

15%

Andhra Pradesh

Bihar

Gujarat

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Manipur

Orissa

Rajasthan

Tamil Nadu

Uttar Pradesh

(In Lakhs)

2009-10 2010-11 2011-12

5

17

3

17

3437

New Cumulative


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Rang De beneficiaries

The year ahead

Austere times require audacious goals. The last two years have been marked by slow down in microcredit space. The resources have dried up and smaller organisations have either closed operations or

are finding it extremely difficult to manage them. The outreach of large organisations has reduced. The

worst affected are the beneficiaries who dont have access to funds. We believe that when resources

are scarce, innovation is the only route to growth.

For the new financial year, our plan is to scale up our outreach. By December 2012, our goal is to

disburse Rs.1 crore every month and reach out to more than 1000 low income households. By March

2013, our field partner network would have grown to a size of 40 non-profit organisations across India.

With scale comes an increased responsibility and Rang De will be implementing process frameworks to

detect any process violation and achieve excellence in our work. This is going to be the most exciting

year for all of us at Rang De. We look forward to the support of our social investors, corporates, our field

partners and everyone who has been contributing to the growth of Rang De.

2009-10 2010-11 2011-12

2176

47345385

2670

7404

12789

During the year Cumulative


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Documents

Rang De Annual Report 2011 12