MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_01C5C8CD.F0D578E0" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_01C5C8CD.F0D578E0 Content-Location: file:///C:/5096448C/Annualreport-03-04final.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Grameen Koota

 
Grameen Koota

A micro finance Institution<= /span>

Promoted by T. Muniswamappa Trust‘\=

 

 

 

 

5th Annual Report

2003-2004

 

 

 

 


<= o:p>

 

 

Grameen Koota

5th Annual Report

 

Table of Conten= ts

 

Message from the CEO........................= ........................................................................ 2

About Grameen Koota.......................= .......................................................................... = 3

Organisational Structure...........................= ..................................................................... 3

Area of Operation........................= ...........................................................................= ..... 4

Our Loan Products.......................= ...........................................................................= ..... 4

How We Work.............................= ...........................................................................= .... 6

Credit-Plus Activities..........................= .......................................................................... = 7

Staff Capacity Building...................= ...........................................................................= .... 7

Research..........................................= ...........................................................................= . 8

Milestones..........................................= .......................................................................... = 8

Performance..........................................= ....................................................................... 8

Voices from the Field......................= ...........................................................................= . 10

Our Funders.............................= ...........................................................................= ....... 12

Governance..........................................= ...................................................................... 13

Grameen Koota at a Glance...................= ..................................................................... 14

Auditor’s Report and Audited Financials.......= .............................................................. 15

Message from the CEO

 

It gives us a great sense of achievement and pride to present our 5th Annual Report. As always, this report provides us with a medium to share critical information about Grameen Koota with our existing and potential partners, donors, well wishers and other stakeholders.

 

Since our inception in 1999, Grameen Koota has continued to reaffirm its faith in microfinance as being the most powerful tool in providing a dignified means= out of poverty for millions of India’s poor.  Along with our services= , we deliver dignity, empowerment and choice to our members and their families.<= span style=3D'mso-spacerun:yes'>  We continue to be inspired by the = simple honesty and entrepreneurial spirit of our borrowers.

 

In our five years of operation, we have successfully challenged the traditional banking norms set by the mainstream financial community.  We continue to target poor women, a segment of the population that is largely ignored by the formal financial sector.  By bringing our servi= ces to our members’ doorsteps, we significantly reduce the transaction costs= for our borrowers.  Further, by providing loans that are not only collateral free but illiterate friendly, = we have been able to embrace rather than exclude the poor.

 

Grameen Koota has made a profound impact in Karnataka, a state where four million families live in poverty and only 40% of the total households have bank accounts.  In the last one yea= r, we have expanded from seven to fourteen branches, spanning four districts.  We have also doubled our outreach = and currently reach more than 15,000 poor households with our microfinance services. By using local manpower and talent in the field, Grameen Koota is also offering opportunities for many educated unemployed youth.  We continue to witness a robust in= crease in our operational and financial self-sufficiency ratios.  Given our past performance, we are confident that we will achieve our goal of reaching 10% of Karnataka’s poor households by 2009.

 

The need of the hour continues to be a convergence of vision where NGOs, MFIs, = FIs and governments work together in improving the lives of the poor. Only with this unity can we eradicate poverty and human suffering.

 

Sincerely,

 

Vinatha M. Reddy

Chief Executive Officer

About Grameen Koota

Grameen Koota was visualized in 1997 based on the book Give Us Credit, by Alex Counts, which gives an account of the impact of microcredit on the lives of the poor in Bangladesh and the United State= s.  Highly inspirational stories of la= rge numbers of individuals rising above the poverty line through the use of microcredit inspired the trustees of the T. Muniswamappa Trust to replicate= a similar program for the benefit of the poor of Avalahalli and its surroundi= ng villages.  Thus, Grameen Koota= was born.  The organisation started operations on 30th May 1999, with the help of seed capital funding from Grameen Trust, Bangladesh to initiate a Gram= een Bank Replication Program.

 

Vision

Our vision is to build a microfinance institution that will eventually be used, managed and owned by poor women.

 <= /o:p>

Mission

·        To assist poor women in both rural areas and urban slums through microcredit so that they and their families can rise ou= t of poverty

·        To consistently deliver need-based financial services in a cost-effective manner

·        To become a financially sustainable microfin= ance institution for the poor

&= nbsp;

Goals

·        To financially breakeven by 2005

·        To provide financial services to 10% (or 3.6 lakhs) of Karnataka’s poor households by 2008

 

Organisational Structure

 

The T. Muniswammapa Trust, a public charitable institution, was established in = 1995 by Smt. Sharadamma in memory of her late father.  The objectives of the Trust were to establish, run and maintain various services, such as reading rooms, medical dispensaries, microcredit institutions, educational institutions, scholarsh= ips for poor students and cultural associations, for the benefit of the people = in and around Avalahalli.<= /b>

 

To date, the trust has established four organizations, as illustrated in the c= hart below:

 

In addition to creating these organizations, the Trust has also been involved = in various other developmental activities.&nb= sp; It has adopted two government schools (Kannada and Urdu) and works closely with the village Panchayat in providing underground drainage and maintenance of the village lake, roads and environment.

 

a.      Who We Serve

Our program targets the poor, since this group is generally excluded by mainstream form= al lending institutions.  Due to = their credit needs, the poor often fall victim to exploitation by local money len= ders and landlords and become entrapped in the cycle of poverty. We aim to pierc= e this vicious cycle by furnishing timely and affordable credit to the poor for in= come generating activities.  Our cl= ients use our loans to harness their own skills and natural business acumen to transform their and their families’ economic status.

 

Within the poor, we target solely women for various reasons.  Women are more vulnerable and acut= ely affected by poverty than the men in their communities. Further, women have proven to be better loan clients than men, and their earnings have a more significant impact on family welfare.  Finally, women are likely to be empowered as a result of their great= er economic contribution to the household.

 

b.      Area of Operation

Grameen Koota operates in the Bangalore Rural, Mandya, Tumkur and Hassan districts.= We reach our clients through our 14 branch offices located in Kaggalipura, Kanakapura, Channapatana, Halagur, Malavalli, Huliyaru, Turuvekere, Gubbi, Chelur, Channapatana Town, Nittur, Bellu= r, Channarayapatana and Tumkur.

 

 

c.      = Our Loan Products

We offer our clients the following loan products:

 

Income Generation Loan (IGL): This= is the first loan given to our members and is strictly for investing in income generating activities.  An IGL= of up to Rs.5000 can be taken in the first year. Provided that a member has a str= ong record of repayment and attendance at weekly kendra meetings, she may apply for larger subsequent loans.

 

Supplementary Loan (SPL): Members = that require extra investment to enhance or recoup their project are eligible for this loan; however, they must be at least halfway through the repayment of their original IGL.  Only those members who have utilized their IGLs well or those who have had a loss but = are regular in their attendance and have demonstrated good trust worthiness and teamwork will be issued this type of loan.

 

Welfare Loan (WFL): These loans are granted for uses such as building toilets or houses, acquiring assets, high= er education, etc. The amount and repayment period of the loan are need based = and are decided by the head office.  Welfare loans for housing and assets require collateral security.

 

Emergency Loan (EL): After 25 week= s, members are eligible to take out a loan of up to Rs.1000 for emergency purp= oses only.  Loans are subject to a = fixed documentation fee according to the loan size.

 

To date, our members have utilised their loans for the following purposes:

 

Cumulative Income Generating Loans Activitywise Distribution

2002(1)

3D"Total # of Loans =3D 1,772= <= /o:p>

2003(1)

3D"Total # of Loans =3D 4,620= <= /o:p>

2004(1)

3D"Total # of Loans =3D 13,048<= /o:p>

Note:  Collection of annual data began = in September 2001.

(1)  Fiscal year as of 31 March.

30/09/04(1)

3D"Total # of Loans =3D 19,607<= /o:p>

 

 

 

Cumulative Group Fund Loans Activitywise Distribution

 

2002(1)

3D"Total # of Loans =3D 6,719= <= /o:p>

2003(1)

3D"Total # of Loans =3D 7,395= <= /o:p>

2004(1)

3D"Total # of Loans =3D 21,309<= /o:p>

30/09/04(1)

3D"Total # of Loans =3D 35,468<= /o:p>

Note:  Coll= ection of annual data began in September 2001.

(1)  Fiscal= year as of 31 March.

 

d.      How We Work

We have adapted the best practices of the Grameen Bank in order to best serve = the needs of our clients.  Below i= s a step-by-step diagram that illustrates our primary field operations.

 

(1)        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;   Upon fully repaying loans, members are eligible for subsequent loans.=

 

e.      Credit-Plus Activities=

Socio-Economic Development Workshops

We conduct periodic socio-economic development workshops (SEDs) for the development of our members. The SEDs are attended by kendra leaders who then disperse the information to their fello= w kendra members during the weekly meetings.  Specialists from va= rious fields, such as health, nutrition, sanitation, family planning, AIDS awaren= ess, marketing, enterprise development and adult literacy have helped us lead th= ese sessions.  To date, we have conducted 51 SEDs at our various branches.

 

Husbands’ Workshops

We believe that the husbands of members play a pivotal role in our membersR= 17; success. Therefore, we hold annual workshops to address husbands’ concerns after their spouses join Grameen Koota. To date, we have conducted= 15 Husbands’ Workshops at our various branches.

 

f.      =   Staff Capacity= Building

We are constantly working towards improving our organisation, and this begins = with our staff.  Our staff have att= ended internal training sessions on a range of topics, such as Accounts, MIS & Computerisation, Targeting & Group Formation and Products & Service= s.  To date, we have conducted 67 trai= ning sessions for our staff. 

 

Many of our staff have also attended various national and international workshops and training sessions conducted by notable organizations, such as Friends of Women’s World Banking (FWWB), EDA Rural Services, Grameen Bank and CASHPOR.  To date, our staff h= ave attended external training sessions.

 

g.      Research

 

The objectives for our research is to understand:

1.&n= bsp;     How our clients manage their cash (i.e., expenditur= e, savings and investment patterns)

2.&n= bsp;     How our clients manage their businesses

3.&n= bsp;     Our clients’ families

4.&n= bsp;     Life-cycle events, such as marriages, births, death= s, etc.

5.&n= bsp;     How our clients manage crises (i.e., accidents, hea= lth problems, etc.) and how GK could have assisted them during these times

6.&n= bsp;     Our clients’ sources of income and income patterns

7.&n= bsp;     Our clients’ lifestyles

8.&n= bsp;     Our clients’ plans for retirement, old age, e= tc.

9.&n= bsp;     Our clients’ annual needs, such as festivals, children’s education, etc.

10.&= nbsp; Our clients’ near future plans

11.&= nbsp; Our clients’ credit usage

12.&= nbsp; Resources available to our clients

13.&= nbsp; Our clients’ asset-building skills

 

 

h.      Milestones

This year marks five successful years of operations.  At our 5th Annual Day, = all staff attended a workshop on mind and attitude conducted by Mr. Jaisimha.  Additionally, former and current G= rameen Koota staff recounted their stories of triumphs and difficulties during the= ir time at GK.

 

We hope to attain the following in the next five years:

 

·        Life and medical insurance coverage for all members

·        Pension plans for all members

·        Development of additional loan products, suc= h as working capital and educational loans

·        Financial self sufficiency

 

i.      =   Perfor= mance

Historical Performance

Over the past five years, we have experienced explosive growth in our number of branches, kendras, members, num= ber of loans disbursed and amount of loans outstanding.  To date, the growth in our number = of members has witnessed a compounded annual growth rate (CAGR) of 169%, while= the amount of loans disbursed has seen a CAGR of 226%.

 

From a financial viability standpoint, we are proud of the progress we have made thus far.  Our goal of 100% viability will be achieved and surpassed in the near future.

 

Projections

We hope to continue growing at a robust rate over the next five years.  Below are our projecti= ons for growth and financial viability over this period.

 

Voices from the Field<= /p>

 =

Puttamma

Melkote, Kanakapu= ra Branch

 

Like many of our borrowers, Puttamma had a difficult childhood and high hopes fo= r a more prosperous future.  At the young age of fifteen, Puttamma was married to an agricultural labourer.  Given her husband’s meager i= ncome, they were unable to cover even the most basic living needs.

 

When Grameen Koota entered her village, Puttamma seized the opportunity and beca= me a member.  Since joining, she has taken two loans—one for Rs.5000 that she invested in a petty shop and= a subsequent one for Rs.6000 that she utilized for purchasing goats.  Though her life was taking a posit= ive turn as a result of these loans, she continued to face hardships. She incur= red significant losses in her shop and saw the death of a few of her goats.  Her husband also fell seriously ill.  Despite Puttamma’s= many setbacks, she has continued to persevere and has been able to repay her loans.  She is now looking for= ward to taking out a third loan, which she will invest in her petty shop.

 

Though Puttama’s hopes of overcoming poverty and living a better life have n= ot changed, they are now attainable because of Grameen Koota’s services.=


Venkatasubamma - Hossur, Kaggalipura Bra= nch

At a young age, Venkatasubbamma lost her father.=   Since she was the eldest of four daughters, she went to work with her mother to help provide for her family.  Because of her hard w= ork, Venkatasubamma was able to get all three of her younger sisters married.  Only after their marriages did she herself marry. 

 

Unfortunately, Venkatasubamma’s marital situation was not a favorable one.  Not only was her husband an alcoholic, but she also suffered from domestic abuse.  Unable to sus= tain in this condition, she returned to her mother’s home.

 

It was during this time that Venkatasubamma lear= ned of Grameen Koota.  Since she was = one of the first members in her village, she motivated many others to join and take advantage of the opportunity at hand.  Using a combination of two income-generating loans and her savings, Venkatasubamma was able to purchase three cows.  She currently sells eighteen litre= s of milk a day. 

 

Over the past two years, Venkatasubamma has accu= mulated a number of assets.  She owns = both a television and a telephone and assumed all of her sisters’ delivery expenses.  “If it weren’t for Grameen Koota’s timely support, my family and I wou= ld likely be on the streets.  Who= else would give loans to the poor?  It is because of Grameen Koota that so many people in this village can live steady lives.  With Grameen KootaR= 17;s loans and other services, we will all rise higher.”=

 

Lakshmamma - Hosakote, Kanakapura Branch

“Hardship and poverty have been a constant= in my life since my childhood.” Because of her family’s financial situation, Lakshmamma was unable to attend school and was instead made to w= ork in the fields to earn whatever slight income she could in order to assist h= er family.  She recalls going to = sleep hungry on the many days that her family did not earn any money.   At just sixteen years old, Lakshmamma was married to an equally poor agricultural labourer.  Though she and her husband worked = very hard, they were still unable to properly provide for their three children.<= span style=3D'mso-spacerun:yes'> 

 

When Grameen Koota entered her village, it was initially received with skepticism—people did not believe that a prog= ram that targets the poor could exist.  However, in time, they began to change their mindsets and trust Gram= een Koota.  Since joining, Lakshma= mma has taken three loans.  The fi= rst loan of Rs.4000 was used to purchase a buffalo, the second one of Rs.6000 f= or sheep and the third of Rs.6000 for another buffalo.

 

Lakshmamma now speaks with both happiness and pride.  “I never had any= thing that I could call my own.  We = were extremely poor.  Since joining Grameen Koota, however, I have been able to accumulate assets for the first time in my life.  The program = has had a positive impact on my life in many others ways as well.”  Lakshmamma feels that Grameen Koot= a has transformed her life and has given her new direction.    She sees similar chang= es in the lives of others in her kendra <= /i>as well.  In the future, Lakshmam= ma hopes to take out larger loans so that she may earn more money and eventual= ly build a house for herself and her family.

 

Our Funders

We would like to thank our funders for their continual support.  Since our inception, we have recei= ved the following loans and grants:

Total Loans

 

Amount
(Lakhs)

Amount
($ in 000s)(1)

% of Total Loans

Soft Loans

 

 

 

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Deutsche Bank

25.0

54.3

4.2%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Grameen Trust

40.0

87.0

6.7%

Total S= oft Loans

65.0

141.3

10.9%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'> 

 

 

 

Commercial Loans for On-lending

 

 

 

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Canara Bank

20.0

43.5

3.4%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Friends of Women's Wo= rld Banking

190.0

413.0

31.9%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>HDFC

42.9

93.3

7.2%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>ICICI Bank=

47.5

108.7

8.0%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>ING Vysya Bank

50.0

108.7

8.4%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>SIDBI

30.0

87.0

5.0%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>UTI Bank

130.0

326.1

21.8%

Total Commercial Loans

510.4

1,180.2

85.8%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'> 

 

 

 

Vehicle / Asset Loans

 

 

 

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Bajaj Auto Finance Lt= d

1.5

3.3

0.3%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Canara Bank

0.7

1.5

0.1%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Haritha Finance Ltd

0.9

2.0

0.2%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>ICICI Bank=

0.7

1.5

0.1%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Mahindra & Mahind= ra Ltd

8.5

18.4

1.4%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>TVS Finance Ltd<= /o:p>

6.0

12.9

1.0%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Vysya Bank=

1.4

3.0

0.2%

Total V= ehicle / Asset Loans

19.7

42.7

3.3%

=  

 

 

 

= Total Loans

595.0

1,364.3

100.0%

Note: Figures as of 30 September 2004.=

(1)  Assumes exchange rate of Rs.46 =3D= USD1.

Total Grants

 

Amount
(Lakhs)

Amount
($ in 000s)(1)

% of
Total GRANTS

= Grants

 

 

 

= CGAP

23.5

51.0

38.6%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Indian Development Se= rvices - Chicago

9.6=

20.8

15.7%

Grameen Foundation-USA

11.3

24.6

18.6%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Grameen Foundation-AU= S

2.4=

5.2=

3.9%

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>All Others=

14.1

30.6

23.1%

Total G= rants

60.8

132.2

100.0%

Note: Figures as of 30 September 2004.=

(1)  Assumes exchange rate of Rs.46 =3D= USD1.

&nb= sp;

T= otal Inflow of Funds

(= amounts in lakhs of rupees)

3D"Note: Rs.1 lakh = =3D Rs.100,000

 

Gove= rnance

In 2001, Grameen Koota initiated the process of forming an exclusive Board for Microcredit.  It was felt that= a governing body would help us focus on microcredit methodologies, form polic= ies, advocate the need for microcredit and attain our goals and objectives.  The Board was to be comprised of a combination of microfinance specialists and practitioners, visionaries and users.  The borrower members o= f the board were elected during a Kendra Leaders Workshop held in May 2001.

 

 

 

Specialists

Mr. Salil Punoose (Fo= rmer CEO of The Savola Group)

 

Mrs. Sandhya Siddarth= (Head of AV Education Society)

 

Mrs. Kathyayini Chama= raj (Development Journalist)

Visionaries

Mr. Jayaram Reddy (Tr= ustee)

 

Mrs. Vijitha Subbaiah (Trustee)

Practitioners

Mr. Gopal Reddy (GK A= rea Manager)

 

Mr. Raghavendra HP (GK Senior Branch Manager)

Borrowers

Mrs. Galalakshamma

 

Ms. Shantha Kumari

 

Mrs. Jayasheelamma

 

Ms. Sabirabi

 

Mrs. Narasamma

 

Mrs. Soubhagya

In 2002, the Board for Microcredit was officially established and held its fir= st meeting in April of that year.  Since then, the Board has convened every six months in order to make policy decisions.Grameen Koota Board for Microcredit Members

 

 

 

&nb= sp;

The activities of the T. Muniswamappa Trust are governed by a Board of Trustees that meets at least twice a year.

B= oard of Trustees

 

 

Chairman

Mr. J. Srinivas Reddy (Agriculturist)

Managing Trustee

Mrs. Vinatha M. Reddy (Grameen Koota, CEO)

Trustees

Mr. J. Surendra Reddy (Industrialist)

 

Mrs. Lalitha S. Reddy (Housewife & Social Worker)

 

Mrs. Renuka S. Reddy (Housewife & Social Worker)

 

Mr. Venkatram Reddy (Businessman & Restaurateur)

 

Mr. Jayaram Reddy (Pr= omac Eng. Industries, Director)

 

Mr. S. Prathap Reddy (Accounts Executive)

 

Ms. Vijitha Subbaiah = (Gurukul School, Directress)

 

 

Grameen Koota at a Glance

 

31-Mar-00

31-Mar-01

31-Mar-02

31-Mar-03

31-Mar-04

30-Sep-04

Summary Statistics

 

 

 

 

 

 

Branches<= /span>

1

2

5

7

12

12

Villages<= /span>

10

38

84

153

315

356

Kendras

12

42

91

185

453

503

Members

170

582

1,258

3,570

10,659

12,092

Annual Dropouts=

16

43

101

237

1,283

N/A

 

 

 

 

 

 

 

Field Officers<= /o:p>

3

8

21

30

60

60

Total Staff

5

14

33

45

87

87

 

 

 

 

 

 

 

Amt. of IGLs Issued<= o:p>

5.04

26.15

73.26

221.09

656.87

781.43

Amt. of IGLs Outstan= ding

3.66

12.38

26.15

73.79

223.50

234.51

Amt. of GFLs Issued<= o:p>

0.17

2.14

11.83

41.75

129.94

159.28

Amt. of GFLs Outstan= ding

0.06

0.43

1.62

5.53

18.78

20.89

Repayment Rate<= /o:p>

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Savings Balance=

0.27

2.25

6.42

20.62

63.17

77.82

 

 

 

 

 

 

 

Perfor= mance Ratios

 

 

 

 

 

 

Portfolio at Risk(1)

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Administrative Cost = Ratio(2)

158.6%

100.2%

82.3%

62.5%

42.3%

38.7%

Operating Cost Ratio= (3)

160.3%

104.4%

93.8%

75.3%

58.8%

53.3%

Personnel Cost Ratio= (4)

51.0%

52.6%

52.6%

45.5%

36.7%

48.4%

Portfolio Outstandin= g per Loan Officer(5)

1.22

1.55

1.25

2.46

3.73

3.91

Active Borrowers per= Staff(6)

26.00

31.79

28.94

60.42

94.67

103.64

Active Borrowers per= Loan Officer

43.33

55.63

45.48

90.63

137.27

150.28

Active Borrowers per= Branch

130.00

222.50

191.00

388.43

686.33

751.42

 

 

 

 

 

 

 

Operational Self-Sufficiency(7)

10.0%

26.8%

35.4%

51.6%

70.9%

76.2%

Financial Self-Suffi= ciency(8)

8.2%

22.0%

30.9%

45.1%

65.9%

65.6%

 (Rs= . in lakhs)      &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;   Note: Rs.1 lakh =3D Rs.100,000.

 =

 =

 =


Auditor’s Report and Audited Financials

 =

M.S. Kamath & Associates

Chartered Accountants

#203, 2nd Floor, 174/40, ‘Lucky Paradise,’ Opp. ICICI Bank Ltd.,

8th ‘F’ Main, 22nd Cro= ss, 3rd Block, Jayanagar, BANGALORE – 560 011

Tel: 080-6630772  Fax: 080-6531448 e-mail: m_s_kamath@vsnl.com

 

1.      = We have audited the attached Balance Sheet of GRAMEEN KOOTA, a project of T. MUNISWAMAPPA TRUST, Anjanapura= Post, Avalahalli, Bangalore-560062, as at 31st March 2004 and the Inco= me and Expenditure Account for the year ended on that date, Annexed thereto.  These Financial statements are the responsibility of the Trust.  = Our responsibility is to express an opinion on these financial statements based= on our audit.

 

We conducted our audit = in accordance with auditing standards generally accepted in India.  Those standards require that we pl= an and perform the audit to obtain reasonable assurance about whether the financia= ls statements are free of material misstatement.  An audit includes examining on a t= est basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also inc= ludes assessing the accounting principles used and significant estimates made by = the management, as well as evaluating the overall financial statement presentat= ion.  We believe that our audit provides= a reasonable basis for our opinion.

 

2.      = We have obtained all the information and explana= tions, which to the best of our knowledge and belief were necessary for the purpos= e of our audit.

 

3.      = In our opinion, proper books of accounts have be= en kept by the Trust so far as it appears from our examination of those books.=

 

4.      = The Balance Sheet and Income and Expenditure acc= ount dealt with by this report are in agreement with the books of account.<= /o:p>

 

5.      = In our opinion and to the best of information and according to the explanations given to us, the accounts read with the sched= ule and notes thereon give a true and fair view:

 

a.&n= bsp;     = In the case of the Balance Sheet, of the state of affairs of this said Project, as at 31st March 2004.<= /span>

b.      = In th= e case of Income and Expenditure Account of the excess of expenditure over Income,= for the year ended on that date.

For M.S. KAMATH & ASSOCIATES<= /o:p>

Chartered Accountants<= /p>

 

 

Place: Bangalore        &= nbsp;           &nbs= p;            &= nbsp;                   &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;             &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;    M.S. KAMATH F.C.A

Date: 29.06.2004=             &nb= sp;            =             &nb= sp;            =          Proprietor

GRAMEEN= KOOTA

Project O= F M/S T.MUNISWAMAPPA TRUST

AVALAHALLI ANJANAPURA POST, BANGALORE – 560062

BALANCE S= HEET AS AT 31.03.2004

&nbs= p;

B= alance Sheet

(= object units)

 

Schedules

Amount
Rs. Ps.

Amount
Rs. Ps.

= Sources of Funds

 

 

 

Corpus Fund

 

 

5,785,472.00

Group Fund & Savi= ngs

1

 

6,247,664.30

Borrowings=

2

 

31,838,824.00

Other Liabilities &am= p; Provisions

3

 

1,438,319.00

Total

 

 

45,310,279.30

=  

 

 

 

= Applications of Funds

 

 

 

Fixed Assets

5

 

 

Gross Block

 

3,141,567.00

 

Less: Depreciation

 

(1,043,916.00)

 

Net Block<= /span>

 

 

2,097,651.00

Loans & Advances<= o:p>

4

 

25,459,010.00

Cash & Bank Balan= ces

6

 

10,700,591.10

General Fund

 

3,865,273.00

 

Opening Balance<= /o:p>

 

3,187,754.20

 

Add: Deficit for the = Year

 

 

7,053,027.20

Total

 

 

45,310,279.30

=  

 

 

 

= Notes on Accounts

9

 

 

Schedules referred to above form part of the Balance She= et.

This is the Balance Sheet referred to in our report of e= ven date.

 

 

= For M.S. KAMATH & ASSOCIATES         = For and on behalf of the

 = ;           Ch= artered Accountants     &n= bsp;            = ;       Board of Trustees

 

 

M.S. KAMATH F.C.A        &= nbsp;           &nbs= p;             = J. SRINIVAS REDDY

        &= nbsp;   Proprietor        &= nbsp;           &nbs= p;            &= nbsp;           Ch= airman

 

= Place: Bangalore        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; VINATHA M. REDDY

Date: 29.06.2004     &nb= sp;            =             &nb= sp;            =   Managing Trustee
GRAMEEN KOOTA

Project O= F M/S T.MUNISWAMAPPA TRUST

AVALAHALLI ANJANAPURA POST, BANGALORE – 560062

INCOME AND EXPENDITURE FOR THE YEAR ENDING 31.03.2004

&nbs= p;

I= ncome and Expenditure

(= object units)

 

Schedules

Amount
Rs. Ps.

Amount
Rs. Ps.

= Income

 

 

 

Services Charges on L= oans

 

 

5,112,879.00

Other Income

7

 

1,483,758.00

Total

 

 

6,596,637.00

=  

 

 

 

= Expenditure

 

 

 

Interest on Loan=

 

 

2,579,985.00

Loan Loss Provision

 

 

443,415.00=

Operating Expenses

8

 

6,088,377.20

Depreciation

 

 

672,614.00=

Total

 

 

9,784,391.20

=  

 

 

 

= Excess of Expenditure= Over Income Transfer to General Fund A/C

 

 

3,187,754.20

=  

 

 

 

= Notes on Accounts

9

 

 

Schedules referred to above form part of the Balance She= et.

This is the Balance Sheet referred to in our report of e= ven date.

 

= For M.S. KAMATH & ASSOCIATES         = For and on behalf of the

 = ;           Ch= artered Accountants     &n= bsp;            = ;       Board of Trustees

 

 

M.S. KAMATH F.C.A        &= nbsp;           &nbs= p;             = J. SRINIVAS REDDY

        &= nbsp;   Proprietor        &= nbsp;           &nbs= p;            &= nbsp;           Ch= airman

 

= Place: Bangalore        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; VINATHA M. REDDY

= Date: 29.06.2004     &nb= sp;            =             &nb= sp;            =   Managing Trustee

GRAMEEN K= OOTA

Schedules= to Balance Sheet as at 31.03.2004

&nbs= p;

(= object units)

 

 

Amount
Rs. Ps.

Amount
Rs. Ps.

= 1

GROUP FUND & SAVINGS

 

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Voluntary Savings

1,493,865.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Emergency Fund

763,607.80=

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Kendra Fund

371,324.00=

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Collective Responsibi= lity Fund

2,254.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Group Fund=

3,616,613.50

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'> 

6,247,664.30

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'> 

 

 

= 2

BORROWINGS

 

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>i) LOAN FOR MICRO CRE= DIT

 

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Grameen Trust - Banga= ldesh

3,813,715.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Housing Development F= inance Corporation

3,138,210.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Friends of Womens Wor= ld Banking

8,922,500.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Deutsche Bank

2,500,000.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>IDS=

249,000.00=

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>UTI Bank

10,550,000.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>SIDBI

2,000,000.00

31,173,425.00

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>ii) LOAN FOR VEHICLES=

 

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Bajaj Auto Finance

55,002.00<= /span>

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Haritha Finance<= /o:p>

7,892.00

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>TVS Finance & Ser= vices

333,930.00=

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Mahindra & Mahind= ra

268,575.00=

665,399.00=

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'> 

 

31,838,824.00

= 3

OTHER LIABILITIES & PROVISIONS

 

 

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Staff Welfare Fund

 

75,493.00<= /span>

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Caution Deposits=

 

581,945.00=

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Provision for Expense= s

 

155,458.00=

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Loan Loss Reserve 200= 3-2004

 

443,415.00=

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>P.F. Payable

 

15,427.00<= /span>

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Interest on Group Fund & V.S. Payable

 

147,681.00=

=  

<= span style=3D'font-size:8.0pt;mso-bidi-font-size:12.0pt'>Audit Fees Payable

 

18,900.00<= /span>

=