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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.

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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)


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


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}


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


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


For Shah & Shah


(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 }


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


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)


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.

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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


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 .

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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)


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


(FRN: 131527w)

For PRAYAS(Organisation for

Documents

Shah&Shah - prayas4development.orgprayas4development.org/wp-content/uploads/2016/09/PRAYAS_Audite… · State Bank Of India ... ictl.n,..tion flr Su ... The question of adjustments