207, Samedh, Besi des Associ ated Petrol Pump, C.G.Road, Ahmedabad-380006 I +9179 4030 7519 | www. shahandshahca.cor I NDEPENDENT AUDITORS' REPORT TO, THE MEMBERS OF PRAYAS ( Organizat i on for Sustainabl e Devel opment) We have audited accompanyi ng f inancial statement s PRAYAS ( "t he Trust") , whi ch compri se t he Balance Sheet as at March 31, 2019, the St atement of I ncome and Expendit ure, f or t he year t hen ended, and a summary of t he signi f icant accounting poli cies and other explanat or y i nf or mat i on. Management ' s Responsibilit y f or t he Financi al Stat ement s The Tr ust' s Management i s responsi ble f or t he mat ter s stated in Sub secti on 2 of Sect i on 33 of Bombay Public Trust Act, 1950 wi th respect t o the prepar ation of financial st at ements t hat gi ve a tr ue and f air view of t he f inancial posi ti on, fi nancial perf ormance of t he Trust and in accordance with t he account ing principl es generall y accepted in Indi a. This responsibil i ty also includes mai ntenance of adequate account i ng records i n accor dance wi t h t he provi si ons of t he Act f or saf eguardi ng t he assets of the Trust and f or preventing and detect ing frauds and ot her irregularit ies; selecti on and appli cat i on of appr opriat e account i ng polici es; making j udgments and est i mates t hat are reasonable and prudent; and design, implementati on and mai nt enance of adequate inter nal financi al cont rol s, that were operat ing effecti vel y f or ensur ing t he accuracy and complet eness of t he account i ng records, relevant to t he preparati on and presentat i on of t he f inancial statements that give a t r ue and fair vi ew and are free from material mi sst at ement , whet her due to f raud or err or. Auditor's Responsi bilit y Our responsi bilit y i s to express an opi nion on t he f inancial statements based on our audit . We conducted our audi t i n accor dance wi t h t he Standards on Audit i ng i ssued by the Institute of Char tered Account ants of India. Those Standards requir e t hat we compl y wi th et hi cal requirement s and pl an and perf or m t he audi t to obtain reasonabl e assurance about whet her t he f inanci al stat ements free from mater ial mi sst atement . An audi t involves perf or ming pr ocedures t o obtain audit evi dence about the amounts and the di scl osures in t he financial statements. The pr ocedur es selected depend on t he auditor ' s judgment , i ncluding t he assessment of t he risks of material mi sstatement of the f inanci al statements, whet her due to fr aud or err or . In maki ng t hose ri sk assessments, the audi tor consi der s inter nal fi nanci al cont rol rel evant to t he Tr ust's preparat i on of the fi nanci al st atements t hat gi ve a tr ue and f air vi ew in order to desi gn audi t procedures t hat are appr opri ate in t he cir cumst ances, but not f or t he pur pose of expressing an opi nion on whet her t he Tr ust has in place an adequate i nternal f inanci al cont r ol s system over f inanci al repor ting and t he operating eff ect iveness of such cont r ol s. An audit al so includes evaluat ing the appropr iat eness of t he account ing poli ci es used and t he reasonabl eness of t he accounting est imates made by t he Tr ust's Management, as well as evaluat i ng t he overall presentati on of the fi nanci al st at ements. We believe t hat t he audi t evi dence we have obtai ned is suffici ent and appropriat e t o pr ovide a basi s f or our audi t opini on on t he f inancial st at ements. Shah & Shah CHARTERED ACCOUNTANTS
Transcript
207, Samedh, Besides Associated Petrol Pump, C.G.Road, Ahmedabad-380006 I +9179 4030 7519 | www.shahandshahca.cor
INDEPENDENT AUDITORS' REPORT
TO,THE MEMBERS OFPRAYAS (Organization for Sustainable Development)
We have audited accompanying financial statements PRAYAS ("the Trust"), which comprise the Balance
Sheet as at March 31, 2019, the Statement of Income and Expenditure, for the year then ended, and asummary 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 BombayPublic 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 responsibility 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 andother irregularities; selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design, implementation and maintenance of adequateinternal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, 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 the financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including theassessment 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 financial control relevant to the
Trust's preparation of the financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on whether the Trust has in place an adequate internal financial controls system over financial reportingand the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting estimates made by the Trust's
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 forour audit opinion on the financial statements.
Shah & ShahCHARTERED ACCOUNTANTS
Date: July 3, 2019Place: Ahmedabad
CA. Tejas C. ShahPartner
Membership No. 135639
For Shah & ShahChartered Accountants
(FRN: 131527W)
Report on Other Legal and Regulatory Requirements
As required by The Bombay Public Charitable Trust Act, 1950 applicable the state of Gujarat and on thebasis of such checks as we considered necessary and appropriate and according to information andexplanations given to us during the course of audit, we enclose in the Annexure, a statement on the
matters specified therein.
Refer Notes to Schedule 6 "Movable and Immovable Properties" related to depreciation for theperiod starting from 01.04.2015 to 31.03.2018 charged to Income and Expenditure amounting toINR 46,40,345 in the current financial year. Excess of Income over Expenditure is less reported bythe said amount.
As informed to us by the Board, Social project at Assam and National Aids Control Program-III isdiscontinued from the current financial year and all the assets and liabilities related to that isadjusted in carried forward balance of Income & Expenditure Account.
Emphasis of Matter
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 themanner so required and give a true and fair view in conformity with the accounting principles generallyaccepted in India;
(a)in the case of Balance Sheet, of the state of affairs of the Trust as at March 31, 2019;
(b)in the case of Statement of Income & Expenditure, of the excess of Income over expenditure forthe year ended on that date.
CA. Tejas C. ShahPartner^j^c^'Date: July 3,2019
Membership No. 135639Place: Ahmedabad
Annexure to the Auditors' Report
(Referred to under 'Report on Other Legal and Regulatory Requirements' section of our report ofeven date)
a.The accounts are maintained regularly and in accordance with the provisions of the BombayPublic Trust Act, 1950 and the Rules there under.
b.The Receipts and disbursements are properly and correctly shown in the accounts.
c.The Cash Balance & Vouchers are in the custody of the Accountant or Trustee on the date ofthe audit were in agreement with accounts.
d.All the books, deeds, accounts, vouchers and other documents of records required by us,
were produced before us.
e.During the year, the Trust did not hold any inventories of movables.
f.The Accountant appeared before us and furnished the necessary information required by us.
g.No property or funds of the Trust were applied for any objects or purpose other than theobjects or purpose of the Trust.
h. There are no loans outstanding as at 31st March 2019, for more than one year from due dateof the scheduled repayment and no amount is written off during the year.
i.During the year, tenders were not invited for the repairs and construction as expenditureexceeded ? 5000/-
j.No money of Trust has been invested contrary to the provision of section 35.
k. There has not been alienations of immovable property contrary to the provisions of section36 which have come to our notice.
For Shah & ShahChartered Accountants
(FRN: 131527W)
Date: July 03, 2019Place: Ahmedabad
As per our report of even date attachedFor Shah & ShahChartered Accountants
(
78,602,688GROSS ANNUAL INCOME LIABLE TO CONTRIBUTION
21,210,532
59,476
37,261
4,020,06213,743,028
1,577,289
1,773,415
99,813,220(I) Gross Annual Income - As per Annexure attached hereto
{II )Details of income not chargeable to contribution under section58 Rule 32.
Donations received during the year from any source(a)Corpus
(1)From Country(2)From Foreign Country; FRCA No. and Date
(b)General(1)From Country(2)From Foreign Country; FRCA No. and Date
(ii) Grants Received from Government and local authorities.(a)Government and Local Authorities(b)From Foreign Country(c ) From Funding Agencies
(1)From Country(2)From Foreign Country; FRCA No. and Date
(iii) Amount spent for the purpose of Secular education.(iv) Amount spent for the purpose of medical relief.(v) Deductions out of income from lands used for agricultural
purposes :-(a)Land revenue and local fund/cess(b)Rent payable to superior landlord(c)Cost of production, if lands are cultivated by the Trust.
(vi) Deductions out of income from lands used for non-agricultural
purposes :-(a)Assessment, cesses and other government or municipal taxes(b)Ground rent payable to the superior landlord(c)Insurance premium(d)Repairs at 10 per cent of gross rents of buildings(e)Cost of collection at 4 per cent of gross rent of buildings let out
(vii) Cost of collection of income or receipts from securities stocks etc. at1 per cent of such income
(viii) Deductions on account of repairs in respect of buildings not rentedand yielding no income at 8.33 per cent of the estimated grossannual rent.
TOTAL
PARTICULARS
THE BOMBAY PUBLIC TRUST ACT, 1950SCHEDULE - IXC(Vide Rule 32)
Statement of income liable to contribution for the year ended on March 31,2019
REGISTRATION NO,- F / 945 / PANCHMAHAL - DATED 11.11.1997
Date: July 03, 2019Place: Ahmedabad
Director
Date:July03, 2019Place: Ahmedabad
For PRAYASOrganisation For Sus^ainable Devel
As per our report of even date attached
For Shah & ShahChartered Accountants
80,472,964 TOTAL
5,864,002
Bv Deficit carried over to Balance Sheet:-
By Transfer from Reserve :-
Bv Income from other sources :-
DomesticInternational FCRA No. and Date
Bv Donations In cash or kind :-
On SecuritiesOn loansOn Bank accountOthers
17,877,128
95,399
6,428,979
73,360,03By Interest Income:-
By Rent :-
Other ExpensesTo Establishment ExpenseTo Remuneration (in the case of Math)To the head of the math, including his household
Expenditure, if anyTo Legal ExpenseTo Audit FeesTo Contribution and FeesTo Amount Written Off-
(a)Bad Debt(b)Loan Scholarships(C) irrecoverable Rents(d) Other Items
To Miscellaneous ExpensesTo DepreciationTo Amounts Transferred to Reserve of Specific
FundsTo Expenditure on objects of the Trust
(Specify if any from FCRA)(a)Religious(b)Educational(C) Medical Relief(d)Relief of Poverty(e)Other Charitable Objects
Excess Of Income OverExpenditure
Rates, Taxes, CessesRepairs and Maintenance
To Expenditure in respect of properties :•
Amount(in Rs.'Amount(in Rs.)
THE BOMBAY PUBLIC TRUST ACT, 1950SCHEDULE - IX
[Vide Rule 17(1)]INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED ON MARCH 31, 2019
F.C.R.A. NO. 042050049 Dated 09.08.2004 / Bank of Baroda • Saving A/c No. 03740100004962
PRAYAS {ORGANISATION FOR SUSTAINABLE DEVELOPMENT)09, GOKULSOCIETY, CHAKALIYA ROAD, DAHOD-389 151
REGISTRATION NO.- F / 945 / PANCHMAHAL - DATED 11.11.1997
297,919,875
27,206,016
270,713,85948,491,656
268,8386,944,4423,298,8706,215,024
19,411,7659,000,000
107,916,628833,037
68,333,599
TOTAL
From Related Parties and Group Concerns
TotalKashi Vishwanath Vidhya Samasthe - MHaapHabitat for Humanity IndiaDena Bankain Sons Finlease Limited
NABARD Financial Service LimitedUnion Bank Term LoanFriends Of WWB LoanMAS Financial Services LimitedIDBI Bank LimitedAnanya Finance for Inclusive Growth Private LimitedFrom Financial Institutions and Banks
Schedule^ 4 Loans (Secured and Unsecured)
24,231,445
1,862,724(282,850)
(2,200,000)1,658,2482,687,326
750,000(1,226,500)
1,976,500
(45,234)
45,234
(3,257,574)(64,329)
3,321,903
7,482,138(1,848,718)3,981,0005,349,856
14,136,5836,769,4017,367,182
TOTAL
TotalLess : Utilized During the YearLess: Transferred to Corpus FundAdd : Addition during the YearOpening BalanceSocial Security Fund
TotalLess: Transfer to corpus fundAdd: Addition during the YearOpening BalanceRevolving Fund
TotalLess: Transfer to corpus fundAdd: Addition during the YearOpening BalanceInterest Fund
TotalLess: Transfer to corpus fundLess: Utilised during the yearAdd: Addition during the YearOpening BalanceReserve Fund
TotalLess: Written off during the yearAdd : Addition during the YearOpening BalanceLoan Loss Reserve
TotalAdd : Addition during the YearOpening Balance)epreciation Fund
Schedule-2 Other Earmarked Funds
25,917,2784,529,3082,200,000
19,187,970
TOTALAdd: Transfer from free reservesAdd: Transfer from Social Security FundOpening BalanceSchedule-1 Trust Fund or Corpus
Amount (Rs.)2019
As at March 31,Particulars
PRAYAS (ORGANIZATION FOR SUSTAINABLE DEVELOPMENT)SCHEDULES FORMING PART OF BALANCE SHEET
20,831,559
20,555,334
276,225
TOTAL
Balances with Banks
Cash on Hand
Schedule-10 Cash & Bank Balance
17,666,928
12,933,0311,816,5401,731,389
21,900101,135
1,062,933
TOTAL
MAS Financial Services Limited - BC FundOther Current AssetsStaff Loans & AdvancesDepositsPrepaid ExpensesTDS/TCS ReceivableSchedule- 9 Advances
280,234,852
264,70727,128,659
252,841,486
TOTAL
Individual LoanSanitation LoanJoint Liability Group LoanSchedule-8 Loans
48,984,990
1,586,9602,168,8958,244,027
32,870,0643,043,7661,071,278
TOTAL
Dena BankNABARD Financial Service LimitedAnanya Finance for Inclusive Growth Private LimitedMAS Financial Services LimitedUnion Bank of IndiaIDBI Bank LimitedFixed Deposits / Security Deposits with -Schedule- 7 Investment
3,715,010
34,77929,646
100,000
537,259471,032
2,130,630411,664
TOTAL
Insurance Claim MembersDisbursement PayableOther Current Liabilities
Audit FeesProvisions
Accrued Interest PayableTrade PayablesSalary and Wages PayableDuties and TaxesSchedule -5 Liabilities
1 of even date attached
5,339,513
558,9544,379,950
400,609
TOTAL
Other IncomesLoan Processing FeesManagement IncomeSchedule-13 Income from Other Sources
73,360,036
11,623,215139,988
3,586,14858,010,685
TOTAL
Interest lncome(BC Fund Portfolio)Interest from BanksInterest From InvestmentsInterest Income(Portfolio)Schedule-12 Interest Income
50,007,4563,981,000
493,5181,216,7683,212,279
37,381,4592,045,8381,676,594
TOTALLoan Loss Expense (Portfolio)Other ExpensesProfessional, Consulting and Training ChargesTravelling and Conveyance ExpensesInterest and Finance ChargesRent, Telephone, Electricity and Municipal TaxesOffice ExpensesSchedule-11 Relief of Poverty
Amount (Rs.) '
SCHEDULES FORMING PART OF INCOME & EXPENDITURE ACCOUNT
ace: Ahmedabad
CATejasCShahPartnerMembership No.135639
Date: July 03, 2019Place: Ahmedabad
For Shah & ShahChartered Accountants(FRN NO.131527W)
1 Excess / Short utilization of Grant has been adjusted and charged to Income & Expenditure Account as the case may be.* Grant reflected as utilization (partially) is standing in balance of creditors which are actually not paid but recorded as Grant Utilization.
(2,767)|(17,662,959)15,009,400 | 18,467,528 |16,104 |23,493,032 |GRAND TOTAL [ (A)+ (B)]
PRAYAS (ORGANISATION FOR SUSTAINABLE DEVELOPMENT)SCHEDULE 3 - UNSPENT / (OVERSPENT) BALANCE OF GRANT
Place: AhmedabadDate: July 03, 2019Place: Ahmedabad
For Shah & Shah
6,428,9791,788,6341,629,2871,526,1391,484,919
Amount of Depreciationon is given as under:
2018-192017-182016-172015-16YearYear wise amount of depreciat
1)Depreciation is not charged on those Assets which are created from Fund / Reserve balances.2)As per policy adopted by the Management in earlier years, depreciation was not provided in books of account. Depreciation for the FY 2015-16, 2016-17,
2017-18 & 2018-19 is now included in the column Depreciation for the year. I.e. INR 64,28,979 as per management's decision.
LandLand & BuildingFurniture and FixturesComputers and PrinteCell Phone /MobileCameraVehiclesOffice Equipment
As at31.03.20:
As at31.03.201
52,2!30,5*
627,.
Asal31.03,203
2,262,2!1,335,81,070,1
18,160,8!
2,231,51676,6:
As at31.03,2019
As at31.03.2019
52,25330,500
794,155
As at31.03.2019
1,484,2631,015,580
640,5279,577
24,2851,700,482
619,4645,494,178
Up to31.03.2019
Sales/Adj.
Up to01.04.2018
AS at31.03.2019
PRAYAS - SOCIAL DEVELOPMENT
is/Up to31.03.2019
Up to31.03.2019
1,398,787570,888
2,094,53817,696
149,049939,094184,064
5,354,116
Up to01.04.2018
As at31,03.2019
52,25330,500
794,155118,900995,808
166,700118,900
Sales /Adj.
PRAYAS - FOREIGN CONTRIBUTION
Sales/Adj.
For theYear777,988425,794
1,111,252
136,551594,586184,064
Up to01,04.2018
620,799145,094983,286
8,92612,498
344,508
PRAYAS - MICROF1NANCE
As at31.03.2019
2,883,0501,586,4682,735,065
173,3342,639,576
803,52863,500
132,411
105,563681,559
As at01.04.2018
As at01.04.2018
52,25330,500
627,455
As at01.04.2018
2,883,0501,480,9052,053,506
27,273173,334
2,576,076676,637
9,870,781
Nature of Assets
Nature of Assets
Land & BuildingFurniture and FixturesComputers and PrintersOffice Equipments
TOTAL - ( B]
Nature of Assets
Land & BuildingYiture and Fixtures
Computers and Printers:ll Phone/Mobile
Bio-Metric MachineVehiclesOffice Equipment
TOTAL - ( A)
PRAYA5 {ORGANISATION FOR SUSTAINABLE DEVELOPMENT]SCHEDULE 6 - MOVABLE AND IMMOVABLE PROPERTIES
E. DEPRECIATIONAs per the management decision, depreciation has been provided on all the assets considering theuseful life of the assets and as per Rates prescribed in Income Tax Act, 1961.
A.ABOUT THE TRUST
PRAYAS - AN ORGANIZATION FOR SUSTAINABLE DEVELOPMENT ('the trust') is trust domiciled in Indand incorporated under the provision of the Bombay Public Trust Act, 1950 ('the Act'). The trust is alsregistered under the Foreign Contribution Regulation Act and having Section 80G exemption anSection 12A registration under the Income Tax Act, 1961.
The trust is engaged primarily in providing micro finance services to women in the rural as well ;urban areas of India who are enrolled as members and organized as Joint Liability Groups ('JLG').addition to the core activities of providing micro-credit, the trust carries out all the developmer
activities of non-financial nature. The wing has several programs going under it such as natur
resource management, water and sanitation, rights based program, disaster relief etc.
B.BASIS FOR PREPARATION OF FINANCIAL STATEMENTSThe Financial Statements are prepared under the historical cost convention in accordance with th
Generally Accepted Accounting Principles in India. All income and expenditure having material bearir
on the Financial Statements are recognized on an accrual basis. The preparation of Financi
Statements requires the Management to make certain estimates and assumptions considered in th
reported amounts of Assets and Liabilities (including Contingent Liabilities) as on the date of thFinancial Statements and the reported Income and Expenses during the reporting period. ThManagement believes that the estimates used in preparation of the Financial Statements are pruderand reasonable. Actual results could differ from these estimates. Any changes in such estimates ai
recognized prospectively.
C.USE OF ESTIMATESThe preparation of financial statements in conformity with the generally accepted accountir
principles requires the management to make judgments, estimates and assumptions that affect threported amounts of revenues, expenses, assets and liabilities and the disclosure of continger
liabilities, at the end of the reporting period. Although these estimates are based on thmanagement's best knowledge of current events and actions, uncertainty about these assumptior
and estimates could result in the outcomes requiring a material adjustment to the carrying amounof assets or liabilities in future periods.
D.FIXED ASSETSThe Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight andother incidental expenses relating to the acquisition and installation of the concerned assets.
PRAYAS (ORGANISATION FOR SUSTAINABLE DEVELOPMENT)SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS
F.REVENUE RECONGNITIONRevenue is recognized to the extent that it is probable that the economic benefits will flow to the trus
and the revenue can be reliably measured,
i)Interest Income on Portfolio loan is recognized under the internal rate of return method. Incom
including interest or discount or any other charges on non-performing asset is recognized onlwhen realized. Any such income recognized before the asset became non performing an
remaining unrealized shall be reversed,
ii)Interest income on deposits with banks is recognized on a time proportion accrual basis takininto account the amount outstanding and the rate applicable,
iii) Loan Processing Fees are recognized on receipt basis,
iv) Commission Income is recognized on receipt basis,v)Donation income is recognized on receipt basis,
vi) All other income is recognized on an accrual basis.
G.BORROWING COSTS / FINANCIAL EXPENSES
Borrowing cost is expensed in the period they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing fund.
H. EMPLOYEE BENEFITS
Pravas Jan Vikas Bhandol:
Retirements benefits in the form of provident fund are a defined contribution scheme. Th
contributions to the provident fund are charged to the statement of Income & Expenditure of the ye
when the contributions to the respective funds are due. There are no other obligations other than th
contribution payable to the provident funds disclosed in books of accounts as informed to us by th
Management.
Pravas - Social Development & Pravas - Foreign Contribution:
The trust is making payment of salary and wages from Grant / fund received for charitable purposfThe Trust has not made any provisions for the benefit of employees working for charitable purposiExpense of Salary and Wages is recorded as expenses incurred for other charitable objects.
I. INVESTMENTSInvestments are recognized at actual cost including cost incidental to acquisition if any. Investmentinclude Long term fixed deposits with various banks and financial institutions. Investments include thaccrued interest receivable and credited as interest income in income and expenditure account.
J. INCOME TAXIncome 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.
K. IMPAIREMENT OF ASSETSThe Trust assesses at each balance sheet date whether there is any indication that an asset may b
impaired. If any such indication exists, the trust estimates the recoverable amount of the asset. If sue
recoverable amount of the asset or recoverable amount of the cash generating unit to which the assf
belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amoun
The reduction is treated as an impairments loss and is recognized in the income and expenditur
account. If at the balance sheet date there is an indication that if a previously assessed impairmerloss no longer exists, the recoverable amount is reassessed and the asset is reflected at th
recoverable amount subject to a maximum of depreciated historical cost.
L. PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETSA provision is recognized when the trust has a present obligation as a result of past event and it
probable that an outflow of resources will be required to settle the obligation, in respect of whit i
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to ii
present value and are determined based on best estimate required to settle the obligation at thbalance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the currer t
best estimates. Contingent liabilities are not recognized in the financial statements. A Continge
Asset is neither recognized nor disclosed in the financial statements.
M. CONSOLIDATION OF ACCOUNTSThe Financial Statements reflect consolidation of following wings:
1)Microfinance Programme
2)Social Development3)Foreign Contribution
N. LOAN LOSS CHARGES / EXPENSES
Loan Loss Provision has been provided during the year of INR. 39,81,000.
As per the Policy of the Trust, Provision for the Loan Loss is provided at 1% on outstanding balance
Loans & Advances (Portfolio including Owned and Managed).
0. SOCIAL SECURITY FUNDDuring the year, Fund was received from the members as a Contribution to the Social Security Fun
which is meant for the purpose of Social Help. During the year, this fund was utilized against the loaiof the members who could not repay their outstanding. As per Board's resolution dated 30.09.201
INR 22,00,000 was transferred from Fund balance to Corpus Fund.
P. In the opinion of the Trustees, the current assets, loans & advances will realize a value not less th;
the amounts stated in the Balance Sheet, if realized in the ordinary course of business.
Q. Contingent liabilities not provided for in the Accounts.
Trustee
Date: July 3, 2019
Place: Ahmedabad
Mr. Bhadresh Rawal
DirectorPartner
Membership No. 135639
Date: July 3, 2019
Place: Ahmedabad
For PRAYAS(Organisation for Sustainable Development)
For Shah & ShahChartered Accountants
R. TREATMENT OF GRANT RECEIVED DURING THE YEARGrant is considered as capital transaction in nature. It is utilized as per the terms and conditioi
entered into with the Funding Agency. Grant received during the year is recorded in Balance Shei
and Utilization of the said grant is adjusted with Grant sanctioned. The detailed statement of Grai
received during the year and its utilization is given as per Schedule - 3
During the Year, Grant not utilized for the said purpose or excess utilization is written off or refund
back as per the policy of Organization and guidelines of Management.
