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Shah&ShahtrHARTERED AGtrOU NTANTS
INDEPENDENT AUDITOR,S REPORT
TO,THE TRUSTEE/S of,PRAYAS (Organisation for Sustainable Development)
We have audited the accompanving financial statements of MICROFINANCE PROGRAMME of the Trust"PRAYAs" ("the Trust"), which comprise the Balance Sheet as at March 3I,20t7, the Statement ofIncome and Expendjture, for the year then ended, and a summary of the significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Trust's Management is responsible for the matters stated in Sub section 2 of Section 33 of Bombay
Public Trust Act, 1950 with respect to the preparation of financial statements that give a true and fairview of the financial position, financial performance of the Trust and in accordance with the accountingprinciples generally accepted in India.
'this responsibrlity also includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Trust and for preventing and detecting frauds
and other rrregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance ofadequate inierrial financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the financialstaternents that give a true and fair view and are free from material misstatement, whether due to fraudor error.
Aud:tor's Responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We have
taken into account the provisions of the Act, the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and the Rules made
thereunder.
An audit involves lerlorming procedures to obtain audit evidence about the amounts and thedisclosures in the iinancial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether dueto fraud or error. In making those risk assessments, the auditor considers internal financial controlrelevant tc tl',!. l'rust's preparation of the financial statements that give a true and fair view in order todesign audit pro,iedures that are appropriate in the circumstances, but not for the purpose of expressingan oprnion on \rirether the Trust has in place an adequate internal financial controls system overfrnancial reporting and the operating effectiveness of such controls. An audit also includes evaluatingthe appropriatencss of the accourrting policies used and the reasonableness of the accounting estimatesmade hy the '[rust's N4anagerner']1, as we!l as e'ra!uating the overall presentation of the financial:itatemearis.
,"*\ trtsziu T,.;
207, Samedh, Besides Associated Petrol Pump, C.G.Road, Ahmedabad-380006 | +91 79 4030 7519 J www.shahandshahca.com
we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opin ion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Bombay Public Trust Act, 1950 in the
manner so required and give a true and fair view in conformity with the accounting principles generally
acceoted in Ind ia, of the state of affa irs of the Trust as at March 31',2Of7 , a nd its statement of Income &
Expenditure for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(Under sub section 2 of section 33 of Bombay Public Trust Act. 19501
d.
a.
c.
f.
n.
That the accounts are matntarned regularly and in accordance with the provisions of the
Bombay Public Trust Act, 1950 and the Rules there under.
The Receipt and disbursement are properly and correctly shown in the accounts'
The cash Balance & vouchers are in the custody of the Accountant of Trustee on the date of
the audit were in agreement with accounts.
All the books, deeds, accounts, vouchers and other documents and records required by us,
were prod uced before us.
e. An inventory, certified by the trustee, of the movables of the trust haslhas not been
ma inta ined. N.A.
That the Trustee appeared before us and furnished the necessary information required by
us.
No property or funds of the Trust were applied for any objects or purpose other than the
objects or purpose of the Trust.
That the amount outstanding for more than one year are { NIL and the amount written off
are { 1,00,032 - For More details, please refer to Note M of Audited Financial statements,
That tenders were not invited for the repairs and construction as expenditure does not
exceed t 5000/-No money of Public Trust has been invested contrary to the provision of section 35'
That has not been alienations of immovable property contrary to the provisions of section
36 which have come to our notlce.k.
ror Shah & Shah
Chartered Accounta nts
(FRN:131527W)
CA. Tejas C. Sha h
Partner
Membership No. 13
Date: July 25, 2017
Place: Ahmedabad
rnMtcasA0f.R.l{0.131527w
Fnavns (oncaNrsATtoN FoR susrAlNABtE DEvEtoPMENT)
MICROFINANCE PROGRAMME
THE BOMBAY PUBLIC TRUST ACT, 1950
SCHEDULE VIII
lVide Rule 17 (1) l
BALANCE SHEET AS ON MARCH 3L,2077
LIABILITIESSch.
No.Amount (Rs.) Amount (Rs.) ASSETS
Sch.
No.Amount (Rs.) Amount (Rs.)
Trust Fund or Corpus Fund :-
Trust Fund or CorPus Fund
Other Earmarked Funds :-
Depreciation Fund
Loan Loss Reserve
Revolving Fund
Social Security Fund
L
I
Unspent Balance of Grant
I
l[oans (Secured and Unsecuredl
I
I Liabilities and Provisions
1
2
3
5
2,L15,tlr5,154,L62
750,000
L,377,44L
4,373,380
9,396,7L4
206,t78,420
24,t74,282
22,714,O43
Movable & lmmovable ProPerties:-
Opening Balance
Add: Current Year addition
Less: Sales during Year
lnvestments
Current Assets
Deposits
Loans and Advances (Portfolio)
Other Current Assets
lCash and Bank Balances :-
lCash on Hand
lBalances with Banks
6
8
a
6,948,794
916,601(1ss,000) 7,7rO,395
33,253,8L7
2t7,O24,6t5
8,848,012
81,000
2t3,75t,6793,181,936
18,910,246
3,803,797 8,614,060
Total 266,836,839 Total 266,836,839
Schedule 12 - Significant Accounting Policies and Schedule 13 - Notes to Accounts
As per our report of even date attached
For Shah & Shah
Chartered Accountants(FRN No.131527W)
CA Tejas C. Shah
Pa rtner
Membership No.1
Date : luly 26,2017
Place: Ahmedabad
For PRAYAS
Organisation For
Bhadresh K Rawal
Di rector
Date: July 26,2017
Place: Ahmedabad
1 31 527llJ PRAYAS \ioig. *t t,li" frr sust]iii r'OovolrBmrnt)
PRAYAS (ORGANISATION FOR SUSTAINABLE DEVELOPMENT)
MICROFINANCE PROGRAMME
THE BOMBAY PUBLIC TRUST ACT, 1950SCHEDULE. IX
lVide Rule 17 (1) lSTATEMENT OF INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED ON MARCH 3T,2OT7
As per our report of even date attached
For Shah & Shah
Chartered Accountants(FRN No.131s27W)
CA Te.jas C. Shah
Partner
Membership No.
Date : July 26,2017
Place: Ahmedabad
(0rgrniraticn fcr SustrinrblrDate: Juty 26,20t7 DevelcPmrnt|Place: Ahmedabad
EXPENDITURESch.
No.Amount (Rs.) INCOME
Sch.
No.Amount {Rs.}
Capital Expenditure
To Expenditure in respect of
11
Grants
Other Income
10 56,533,372
properties :-
Other Exoenses
To Expenditure on obiect ofthe Trust :-Interest & Financial Charges
Salary and Wages
Other Expenses
Excess Of lncome Over
Expend itu re
29,097,967
L6,022,975
7,608,639
rOTAT 56,533,372 IOTAL s6,533,372
PRAYAS (ORGANTSATION FOR SUSTAINASI.E DEVELOPMENT}
MICROFINANCE PROGRAMME
SCH€DUTES FORMING PARTOF BALANCE SHEET
ParlicularsAs at March 31,
zolTAmount
Schedule-lT.ust Fund or Corpus Fund
Opening Balance
Add: Addition during the year
Less: withdrawal during the year
4,3733N
TOTAL 4,373,380
Schedule-2 Other Earmarked Funds
O€preciation Fund
opening Salance
add : Addition duringtheYearLess:Utilized during the year
Loan Loss Resew€ (S€e Not€ - M)
OpeninB Balance
Add : Addition durinSthe Year
Less: Written Off during the year
Revolvlnt Fund
Opening Balance
Add i Addition durin8 theYear
Social Secudty Fund (See Note - N)
opening Balance
Add : Addition during the Year
Add : Utilized durin8 the Year
2,166,522
{51,411}2,115,L11
s,209,370
10,887
{65,095)5,rs4,t62
750,000
750,000
267,835
1,910,803
{801,197)7,377,447
TOTAL 9,396,71l
Schedule-4 Loans {Secured and Unsecured)
Secured foans:
Frcm Financial Institutions.nd ganks
Ananya Finance
SIDBI
lDBl- Term Loan
MAS Financial Services Limited
State Bank Of India
NABARD Financial Service I-imited
IGS Sasics
Total
Untecured Loant:
From Financial InstitutionrHabitat for Humanity
KashiVishwanathVidhyaSamasthe Milaap
From Grouo Conae.ni / Related PartiesTotal
24,513,889
39,333,334
1,875,000
62,468,809
10,647,479
10,000,000
3,855,558
ls2,688,169
1,894,358
32,99t,70934,886,067
18,604,18418,504,184
TOTAI- 206,178,420
MAS Financial Services Limited - BC Fund
Deposits / Security Deposits with -
Industrial Development Bank of India (SlOBl)
Bank Of India
Financial Services Limited
Ananya Finance for lnclusive Growth Private Limited
NABARD Financial Service Limited Fixed Deposit
ichedule-9 Cash and Eank Balances
:ash on Hand
Balances with Banks
233,952
8,614,060
TOTAL 8,848,012
Particu la rs Amount (Rs.)
Schedule-10 Incomes
nterest Income (Portf olio)
-oan Processing Fees
:ommission Income
nterest Income From Investments
Jther Income
47,397 ,6894,090,870
2,5L2,231
2,127,065
405,577
TOTAT 56,5t3,372
pnlvAs (ORGANIZATION FOR SUSTA!NABtE DEVETOPMENT)
SCHEDULES FORMING PART OF INCOME & EXPENDITURE ACCOUNT'
For Shah & Shah
Chartered Accountants
(FRN No.131527W)
CA Tejas C. Shah
Partner
Membership No.
Date : July 26,2017Place: Ahmedabad
K Rawal
Date : July 26, 2017
Place: Ahmedabad
DlrcctrrPRAYASictl.n,..tion flr Su slaln a frle
DcveloPmant)
Schedule-11 Other ExPenses
Professional & Training Charges
Travelling & Conveyance Expenses
lnsurance Expenses
Office Expenses
Rent and Maintenance Charges
Miscellaneous Expenses
900,20s
2,338,778
292,712
r,465,675
1,955,991
544,278
TOTAT 7,608,639
PRAYAS (ORGANISATION FOR SUSTATNABLE DEVELOPMENT)
SCHEDULE . 3 . UNSPENT / (OVERSPENT) BALANCE OF GRANT
MICROFINANCE PROGRAMME
Sr.
No.Description of Grant
Opening
Balance as on
April 1, 2016
Grant
Received during
the yearTotal
Expenditure
incurred during
the year
wloftor
(Adiusted)
Closing Balance
as on March 31,
20L7
t-
Financial Inclusion
lmproves Sanitation and
Health (FlNlSH)
b4t,br5 64L,613 64L,6L3
TOTAL 641,613 64t,6t3 541,613
As per our report of even date attached
For Shah & Shah
Chartered Accountants
(FRN:131527w)
<,n-Tejas C. Shah
Partner
Membership No. 135639
Date : July 26,201.7
Place: Ahmedabad
(0r;rnisrtirn fcr Sustainrhf e
Date : Jury 26,2oL7 DrvrlQmlnt)Place: Ahmedabad
1 31 52?w
PRAYAS
PRAYAS ( ORGANISATION fOR SUSTAINABTE DEVEIOPMENT }
MICROFINANCE PROGRAMME
SCHEOULE:- 6 MOVABLE & IMMOVABLE PROPERTI€S
Sr.
NoNature of Assets
Gross Block Depreciation Net Block
As at3t.03.2017
Net Block
As at
31.03.2016
As at
0r.(X.2016Additions
Sales/
AdiustmentAs at
31.03.2017
Up to01.04.2015
for theYear
Sales/
AdiustmentUp to
31.03.2017
1
2
3
4
5
6
l
Land & Building
Furniture & Fixtures
Computers & Printers
Cell phone / Mobile8io Matric Machine
Vehicles
Office Equipment
2,883,050
1,r28,9L7r,588,723
27,2731 qo ?on
965,4491 Aq Aa?
268,350
346,802
301.449
1 qq nnn
2,883,050
r,397,2671,935,s2s
27,273159,390
810,449
497,441
620,799
145,094
983,286
8,926
12,498?qq ql q >L,q tt
620,799145,094
983,286
8,926t2,498
344,508
2,262,25LI 1C1 1t2
952,23978,347
L46,892
465,94r
497,44r
2,262,zsr983,823
605,437
78,347
L46,892569,530
195,992
Total 6,948,794 9r6,601 r55,000 7,710,395 2,L66,522 51,411 2,115,111 5,595,284 4,782,272
b
c
Depreciation has not been provided during the year as per written repr€sentation received from Management of the Trust.
No Cenvat credit has been availed on any ofthe above capital expenditure.The question of adjustments on account of change in the rate of exchange of currency does not arise as there is no imports of the Fixed Assets during the year.
As per our attached report of even date
For Shah & Shah
Chartered AccountJnts
(FRN 131527w)
CA Tejas C. Shah
Partner
Membership No. 135639
Date: iuly 26, 2017
Place; Ahmedabad
Bhadresh K. Rawal
DirectorDirectorPRAYAS(Orllnirtion frr Sustrinrb|l
Date:rury26,2017 loV0lOpmcnt)Place: Ahmedabad
FoT PRAYAS
Organisation For
PRAYAS (ORGANISATION FOR SUSTAINABTE DEVELOPMENT)
MICROFINANCE PROGRAMME
SCHEDULE: - 12 SIGNIFICANT ACCOUNTING POLICIES
A. ABOUT THE TRUST
PRAYAS - ORGANIZATION FOR SUSTAINABLE DEVELOPMENT ('the trust') is trust domiciled in India andincorporated under the provision of the Eombay Public Trust Act, 1950 (the Act'). The trust is alsoregistered under the Foreign Contribution Regulation Act and having Section 80G exemption and Section12A registration under the Income Tax Act, 1961.
The trust is engaged primarily in providing micro finance services to women in the rural areas of India whoare enrolled as members and organized as Joint Liability Groups ('JLG'). In addition to the core business ofproviding micro-credit, the trust carries out all the development activities of non-financial nature. The
wing has several programs going under it such as natural resource management, water and sanitation,rights based program, disaster relief etc.
B. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS & USE OF ESTIMATES
The Financial Statements are prepared under the historical cost convention in accordance with theGenerally Accepted Accounting Principles in Indla. All income and expenditure having material bearing onthe Financial Statements are recognized on an accrual basis. The preparation of Financial Statementsrequires the Management to make certain estimates and assumptions considered in the reportedamounts of Assets and Liabilities (including Contingent Liabilities) as on the date of the Financial
Statements and the reported Income and Expenses during the reporting period. The Managementbelieves that the estimates used in preparation of the Financlal Statements are prudent and reasonable.Actual results could differ from these estimates. Any changes in such estimates are recognizedprospecrvery.
C. FIXED ASSETS
The Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other
incidental expenses relating to the acquisition and installation of the concerned assets.
D. DEPRECIATION
In the current financial year, no depreciation has been provided in the books of accounts as per the
decision taken by the Management ofthe Trust.
ffiffiRw#\;IFtz
E. REVENUERECONGNITION
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the trust
and the revenue can be reliably measured.
ii)
iii)iv)
v)
F.
lnterest income on Portfolio loans given is recognized under the internal rate of return method.
Income including interest or discount or any other charges on non-performing asset is recognized
only when realized. Any such income recognized before the asset became non-performing and
remaining unrealized shall be reversed.
Interest income on deposits with banks is recognized on a time proportion accrual basis taking
into account the amount outstanding and the rate applicable.
Loan processing fees are recognized on receipt basis,
Commission income is recognized on accrual basis.
All other income is recognized on an accrual basis.
BORROWING COSTS / FINANCIAT EXPENSES
Borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of funds.
G. EMPTOYEE BENEFITS
Retirement benefits in the form of provident fund are a defined contribution scheme. The contributions tothe provident {und are charged to the statement of profit and loss of the year when the contributions tothe respective funds are due. There are no other obligations other than the contribution payable to theprovident funds disclosed in books of accounts as explanation received from the Management of theTrust.
H. INVESTMENTS
lnvestments are recognized at actual cost including costs incidental to acquisition if any. Investments
include Long term fixed deposits with various banks and financial institutions. Investment includes the
accrued interest receivable at maturity and recorded as Interest income in Income and expenditure
accou nr.
I. INCOME TAX
Income Tax and Deferred Tax Asset /Liability have not been recognized, due to the exemptions available
under sections 11 and 12 of the Income Tax Act.
J. IMPAIREMENT OF ASSETS
The Trust assesses at each balance sheet date whether there is any indication that an asset may be
impaired. lf any such indication exists, the trust estimates the recoverable amount of the asset. lf such
t.R N0.13152? Vl
recoverable amount of the asset or recoverable amount of the cash generating unit to which the asset
belongs is less than its carrying amount, the carryin8 amount is reduced to its recoverable amount. The
reduction is treated as an impairments loss and is recognized in the income and expenditure account. lf atthe balance sheet date there is an indication that if a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is reflected at the recoverable amount subiect to a
maximum of depreciated historical cost.
K. PROV|StONS, CONTTNGENT L|ABILtTtES AND CONTTGENT ASSETS
A provision is recognized when the trust has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which reliableestimate can be made. Provisions (excluding retirement benefits) are not discounted to its present valueand are determined based on best estimate required to settle the obligation at the balance sheet date.These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.contingent liabilities are not recognized in the financial statements. A Contingent Asset is neitherrecognized nor disclosed in the financial statements.
PRAYAS (ORGANISATION FOR SUSTAINABLE DEVETOPMENTI
MICROFINANCE PROGRAMME
SCHEDULE: - 13 NOTES TO ACCOUNTS
L. CONSOTIDATION OF ACCOUNTS
The Financial Statements reflect consolidation of following Branches:
1) PJVB Head Office2) PJVB Gandhinagar
3) PJVB Dahod
4) PJVB Kutch
5) PJVB Surendra nagar
6) PJVB Madhya Pradesh
M. LOAN IOSS PROVISION
Loan Loss Provision has not been made during the year on the outstanding portfolio Amount, as perdecision taken by the Management of the Trust. However, during the year Trust has recorded adjustmententry for Reserve for Loan Loss to reconcile the books and MIS software. We have received writtenrepresentation from the Management of the Trust. During the Year, lNR. 66,095 written off as bed debt.Further lNR. 33,937 is other misc. written off during the yea r 2OL6-!7 .
ffiffi\w#
N. SOCIAL SECURITY FUND
During the year, Fund was received from the members as a Contribution to the Social Security Fund, which
is meant for the purpose of Social Help. During the year, this fund was utilized against the loans of the
members who could not repay their outstanding.
O. In the opinion of the Trustees, the current assets, loans & advances will realize a value not less than
the amounts stated in the Balance Sheet, if realized in the ordinary course of business.
P. contingent liabilities not provided for in the Accounts.
ble Development)
Membership No. 135639
Date: J uly 26, 2017
Place: Ah medabad
Director oJfiiirsilr;rnirrt'on tlr Sustrir "rlc
Date: Julv 26, 2017 lovrlrtm'ntlPlace: Ahmedabad
For Shah & Shah
Chartered Accountants
(FRN: 131527w)
For PRAYAS(Organisation for