Final Report of Supriya Singh

(i)

Summer Internship Project

Topic

Social Performance Management (SPM) and Corporate Social

Responsibility (CSR) in the Microfinance industry.

Submitted to

Prof. (Col.) A.K. Rajpal

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)

Under the Supervision of

Ms. Shalini Singh

Submitted by Student Name: Supriya Singh

Roll No.: PGSF1456

May, 2015

(ii)

Declaration by the Author

I, hereby, declare that the work presented in this report entitled “Social Performance

Management (SPM) and Corporate Social Responsibility in Microfinance Industry” in

fulfillment of the requirement for PGDM Programme, submitted to Jaipuria Institute of

Management, Noida is an authentic record of my own work and is free from any type of

plagiarism, carried out under the supervision of Miss. Shalini Singh.

I also declare that the work embodied in the present report:

(i) Is my original work and has not been copied from any source, and

(ii) Has not been submitted for any other Degree or Diploma of any University/

Institution.

Name and Signature of Student:

Supriya Singh

Roll No. PGSF1456

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Acknowledgment

A few people need a special mention, without whose help this project would have been

unthinkable. First of all, I would like to thank my industrial mentor ‘Miss Shalini Singh’,

who gave me chance to do training in Fusion Microfinance Pvt. Ltd.

Also I would like to give special thanks to her for making available all the resources to

facilitate for the compilation of this project. She left no stone unturned to help me in this

endeavor. I thank her whole heartedly for her consent encouragement, warm response and

for filling every gap in my personal development and knowledge enlightens and valuable

idea that made this project successful. Without her guidance and support this project could

not have been success.

I am heartily thankful to faculty member ‘Prof. (Col.) A.K. Rajpal’, my seniors, & friends

who have shown me the correct path while preparing this project.

Last but not least, I would like to thank all the employees of Fusion those who supported me

in any respect during the completion of the project. And a final thank to all those concerned

with the completion of this project directly or indirectly.

Thank you.

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Table of Contents

Executive Summary ........................................................................................................................ 1

Chapter – 1 Company Description .................................................................................................. 3

1.1 Overview of Microfinance Industry ................................................................................. 4

1.2 Fusion Microfinance Private Limited ................................................................................... 8

1.3 Social Performance Management........................................................................................ 18

1.4 Corporate Social Responsibility .......................................................................................... 19

1.5 Culture ................................................................................................................................. 20

1.5.1 Vision............................................................................................................................ 20

1.5.2 Mission ......................................................................................................................... 20

Chapter – 2 Job Description .......................................................................................................... 21

Chapter – 3 Literature Review ...................................................................................................... 23

Chapter – 4 Research Methodology & Data Collection ............................................................... 25

4.1 Research Methodology ........................................................................................................ 26

4.2 Objectives ............................................................................................................................ 27

4.3 Data Collection .................................................................................................................... 27

Chapter – 5 Analysis ..................................................................................................................... 29

5.1 Analysis of Data .................................................................................................................. 30

5.1.1 TOOLS OF ANALYSIS .............................................................................................. 30

Chapter – 6 Conclusion, Recommendation & Limitations ........................................................... 46

6.1 Conclusion ........................................................................................................................... 47

6.2 Recommendations ............................................................................................................... 47

6.3 LIMITATIONS .............................................................................................................. 48

Appendices .................................................................................................................................... vii

Bibliography ................................................................................................................................ xvi

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Table of Figures

Figure 1:- Living Status in India ..................................................................................................... 5

Figure 2: Microfinance penetration In India ................................................................................... 6

Figure 3:- Branches in Uttar Pradesh ............................................................................................ 11

Figure 4:- Branches in Madhya Pradesh ....................................................................................... 12

Figure 5:- Branches in Haryana .................................................................................................... 13

Figure 6:- Branches in Delhi ......................................................................................................... 14

Figure 7:- Branches in Uttarakhand .............................................................................................. 15

Figure 8:- New Branches in Haryana ............................................................................................ 16

Figure 9:- Number of new branches ............................................................................................. 16

Figure 10:- New Branches in Uttar Pradesh ................................................................................. 17

Figure 11:- New branches in Madhya Pradesh ............................................................................. 17

Figure 12:- New Branches in Bihar .............................................................................................. 18

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Table of Graphs

Graph 1:- The Bar chart view of the grievances (Jan-April) ........................................................ 34

Graph 2:- indicates that the ROA, ROE, Current Ratio and Debt-to- Equity Ratio of 2013 of the

companies (Ujjivan, Equitas, Annapurna, Cashpor & Fusion) ..................................................... 36

Graph 3:- indicates that the ROA, ROE, Current Ratio and Debt-to- Equity Ratio of 2014 of the

companies (Ujjivan, Equitas, Annapurna, Cashpor & Fusion) ..................................................... 37

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Table of Comparison

Comparison 1 :- Ujjivan & Fusion................................................................................................ 38

Comparison 2:- Cashpor & Fusion ............................................................................................... 39

Comparison 3:- Bandhan & Fusion .............................................................................................. 40

Comparison 4:- Equitas & Fusion................................................................................................. 40

Comparison 5:- Annapurna & Fusion ........................................................................................... 41

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Executive Summary

Microfinance industry is growing over the past few years. With financial inclusion emerging as a

major policy objective of India, Microfinance Institutions have become the center stage as a

promising conduit for extending financial services to unbanked section of population.

Microfinance assets reached to Rs. 35000 crore as on March 2015 and the economic growth

expected to increase from 4.4% to 4.8% in 2015.

Fusion Microfinance Private Limited is a New Delhi based company established in 2010 by Mr.

Devesh Sachdev & Mr. Ashish Tiwari. It has its penetration in North central part of India through

107 branches. The project I work is entitled “Social Performance Management (SPM) & Corporate

Social Responsibility (CSR) in Microfinance Industry.”

The project is a descriptive research involve the past literature from old research paper, journals,

books, website, etc and has both quantitative and qualitative data.

The project also contain the comparison of the SPM works of other top five microfinance

companies (Ujjivan, Cashpor, Bandhan, Equitas, and Annapurna) of India, Financial literacy, CSR

activities done by the companies, Technical Assistance Assessment Report, Client Grievance

Redressed Report (Jan-Mar 2015), Social Performance Assessment Report and Action Plan,

Training cum workshop on Responsible finance and client Protection Report, The detail about

other Microfinance companies (Ujjivan, Cashpor, Bandhan, Equitas, and Annapurna) CSR

activities, financial literacy, The detail list of SPM activity done by the microfinance companies

(Ujjivan, Cashpor, Bandhan, Equitas, and Annapurna) and comparing the activities with Fusion

and giving suggestion to improve its SPM, Prepared list of women schemes passed by Government

of India which help Fusions Clients, Prepared presentation for CSR proposal to the corporate in

India.

The project indicates the performance of Fusion Microfinance in the SPM & CSR work which

helps the clients as well as the employees of the company. The SWOT analysis of the company is

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also done in order to analyze the report. I have also analyzed the financial report of the top

microfinance companies for the year 2014 & 2013 through financial ratio such as

Return on Assets

Return on Equity

Current Ratio

Debt to Equity Ratio

These ratio helps to know how these are different for Established Company and Start-up Company.

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Chapter – 1 Company Description

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Company Description

1.1 Overview of Microfinance Industry

Microfinance is a general term to describe the financial services provided to the low-income

individuals or to those who do not success to typical banking sector. Microfinance has the idea

that low- income individual are capable of lifting themselves out of poverty if given access to

financial services. Microfinance services are based on the premise that people who are living in

poverty needs diverse range of financial services to run their business, build assets, manage risks,

smooth consumption, etc. Microfinance helps low income group people to rely on the money

lenders, informal deposit collector, etc. who provide money at high interest and at high risk to

borrowers.

Microfinance supplies loan, savings and other basic financial services to the poor, as these services

are usually of small amounts. The term “Microfinance” helps to differentiate it from formal banks.

Microfinance gives small loans because person who doesn’t have a lot of money isn’t likely to

want or be able to take a large amount of money i.e., Rs. 50,000 loan or be able to open an account

of minimum balance of Rs.1000. Microfinance understands that the poor people have limited or

no collateral to offer as security, therefore most of the microfinance product and delivery systems

are structured around building repayment system through group co-guarantees, peer pressure, joint

liability or a similar mechanism.

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Figure 1:- Living Status in India

There are microfinance institute which lend to individual borrowers, but there are very few and

form a negligible proportion of the overall microfinance coverage in India. Most microfinance

loans are extended through Joint Liability Groups (JLGs) or Self Help Groups (SHGs).

In Joint Liability Groups (JLGs) members self- select themselves; groups are formed by any

external influence. If any one or more members in a group default in repayment of the loan, then

other group members agree to jointly bear the responsibility of repaying such amount on behalf of

the members who have/has defaulted, or ensures that the payment will be made by the defaulter,

using peer pressure. The institution provides loans to JLGs would ensure that there is joint liability

within the groups. The microfinance institute which provides JLGs in India is Fusion Microfinance

Private Limited.

In Self- Help Group (SHG) has a set of persons generally from a homogenous socio-economic

background who voluntarily form a group to save a regular sum of money in a common fund, and

use the pooled funds as well as external resources from banks and microfinance institutions to take

loans for mutually agreed purposes. The members use existing knowledge of one another for

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mutual credit assessment and employ peer pressure to ensure proper end use of credit and time

repayment.

Women have been known to handle money very responsibly. Further, In the Indian context,

women are home-makers or conduct businesses within or close to their homes than men. This

makes them more accessible for the regular collection meetings. Women are also more likely to

use the surplus income from their business activity for spending back into the business or for better

food, education expenses of children or home improvements – as opposed to wasteful or

consumptive expenditure.

The microfinance business model in India typically generate a Return of Equity of between 20%

& 30% which is driven by financing from commercial banks, strong operating efficiency and high

portfolio quality. Despite achieving these rapid growth with a CAGR of 86% in loan portfolio

outstanding and 96% in borrowers over the last ten years.

Microfinance Industry still faces a large unmet demand which means that it still has the great

potential for continued growth.

Figure 2: Microfinance penetration In India

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SWOT Analysis of Microfinance Industry

Strength

• Helped in reducing the poverty.

• Huge networking available.

Weakness

• Not properly regulated.

• High number of people access to informal source of finance.

• Concentrating on few people only and mainly in urban areas.

Opportunity

• Huge demand and supply gap.

• Employment opportunity.

• Huge untapped market.

• Opportunity for Private Banks, NBFCs, Foreign Banks to enter this business.

Threat

• High competition.

• Neophyte Industry.

• Over involvement of Government.

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1.2 Fusion Microfinance Private Limited

Fusion Microfinance as an organization was set-up by Mr. Devesh Sachdev, an XLRI Post

Graduate and Mr. Ashish Tewari, an Economics, Law and Management Graduate having

complimentary skill sets in Banking, Finance and supply chain. The company received NBFC –

MFI license in January 2014 and operates on the time-tested Grameen JLG model with 100%

women clients. Fusion is head quartered in New Delhi and operational in the less penetrated North

Central part of India (Madhya Pradesh, Uttarakhand, Uttar Pradesh, Haryana and Delhi) through

107 branches.

With a humble beginning in January 2010, Fusion as an organization has established itself as a

serious player in the North-Central part of India. Our strategy to be prudent in lending, good

governance, consistent growth, vision clarity (not claiming to be eradicating poverty but providing

access to finance), resilience of the team and support from stakeholders has helped the organization

not only to tide over but also grow in midst of the microfinance crisis in India.

Fusion primarily works in rural and semi-urban areas providing financially services to women

belonging to the economically and socially deprived section of the society. Over 85% of the active

loan clients belong to the marginalized communities such as ST/SC and OBC. Fusion has

expanded its branch network in 10 poorest districts in Madhya Pradesh and Uttar Pradesh under

Poorest State Inclusive Growth program of SIDBI.

Fusion is complying with all the RBI directives regarding the rate of Interest, Margin, No

Collateral, Qualifying Assets etc. It ensures that all compliance is being followed and transparent

to their stakeholders. The company has Fair Practice Code policy, ALM, Risk Management and

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Audit Committee for proper and transparent work and has appointed KPMG for Statutory Audit.

Fusion is the member of MFIN (SRO), two Credit Bureau i.e. High Mark and Equifax. It has

received 83% score in Code of Conduct Assessment (COCA) by M-CRIL.

Fusion conducts 100% Contact Point Verification (CPV) of its clients compared to other MFIs

who adopt a sample approach for CPV (approximately 25%). Its revenue has increased to Rs.

54.95 crore as on FY15 from Rs. 6.85 crore in FY12 at a CAGR of 100% .The Company has

decreased its operating cost from 18.0% in FY12 to 10.28% in FY 14 to 8.82% in FY15 due to

operational efficiencies introduced in credit, banking, collection and processes. Productivity of the

loan officer has consistently improved from Rs. 0.56 crore in FY12 to Rs. 0.78 crore in FY15 and

the PAR > 30 is 0.39% as on March 31, 2015.Fusion’s net worth is Rs. 49.94 Cr and gross loan

portfolio is Rs. 277.87 Cr as on March 31st, 2015.

Awards and Recognition:

The MFIN has ranked Fusion as the fastest growing NBFC-MFI in FY14. CRISIL has

included Fusion in the list of India’s 25 leading MFIs.

Fusion has received ‘Best MFI of the year 2014 Award’ at ‘Microfinance India Awards

2014’ instituted by ACCESS.

CARE rating agency has assigned a grading of MFI 2 and loan rating of BBB- on

framework of transparency, operational set up, scale of operations and sustainability.

Fusion’s pillars of strength are:

Governance and Transparency: Fusion has ensured regulatory compliances and

governance commitment. It has a diversified and engaging ‘Board Members’ with an

enriching governance platform, ensuring multi-level checks coupled with various Board

committees to ensure adherence with institutionalized systems and processes. It has

enlisted KPMG, one of the top four global auditing firms, to audit our financial statements

since beginning. Responsible finance and client protection have strengthened Fusion as a

brand as it complies with all the RBI directives and industry guidelines. It shares the data

with MFIN, MIX and MF Transparency. It has earned seal of ‘Transparent Pricing’ from

MF Transparency and also received 83% score in ‘Code of Conduct Assessment’ from M-

CRIL.

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Human Capital: Since, inception in 2010, It has touched the lives of more than 288,139

clients. The resilience and around 100 years of collective experience of the Team Fusion

earned throughout all these years have been put together to make it possible. It also helped

in transformation of our key employees into entrepreneurs by providing them an

opportunity to invest in the company through ‘Equity Participation’ plan which instilled a

sense of commitment and ownership towards the company.

Business Model: Fusion is working on Grameen based JLG model. The JLG model works

effectively with the clients as it gives them financial push to improve their income

generating activities.

Robust IT and MIS systems: Fusion has invested in robust IT and MIS systems,

facilitating a continuous monitoring of clients, disbursements, cash management, field

officers and operating expenses.

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Geographical presence of Fusion in India

Figure 3:- Branches in Uttar Pradesh

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Figure 4:- Branches in Madhya Pradesh

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Figure 5:- Branches in Haryana

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Figure 6:- Branches in Delhi

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Figure 7:- Branches in Uttarakhand

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New Branches to be open in Indian States:-

Figure 8:- New Branches in Haryana

Figure 9:- Number of new branches

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Figure 10:- New Branches in Uttar Pradesh

Figure 11:- New branches in Madhya Pradesh

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Figure 12:- New Branches in Bihar

1.3 Social Performance Management

Social performance management (SPM) is the effective process of managing an organization/

institution to achieve a social mission. It is a management that puts customers at the center of all

strategic and operational decisions. The social value of microfinance relates to the financial

services which improves the lives of poor and excludes clients and their families and widens the

range of opportunities for the community. SPM begins with a clear social strategy, which is then

carried out by the board, management, and employees.

Social performance is not just about measuring these objectives and outcomes but also about the

actions and corrective measures taken by a microfinance institution to generate those outcomes. It

does not focus only on the final impact. The aim is to determine whether the microfinance institute

gives the means to reach its social goals, by monitoring progress towards those goals and

understanding how to use the information it gathers to make improvements in its operations.

Over the last four years, Fusion has laid stress on growth and sustainability. Its estimated annual

growth rate in FY 2013-2014 was 143% in terms of outstanding portfolio and it has become

profitable for the first time since starting microfinance operations. With the achievement of

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sustainability, Fusion Board and management now want to ensure that this growth is also in line

with the mission of Fusion. As such, the MFI has recruited an SPM Manager and has initiated

action first to understand the current state of its SPM practices and subsequently to formalize its

approach on SPM.

1.4 Corporate Social Responsibility

The World Business Council for Sustainable Development (WBCSD) defines CSR as “the

continuing commitment of business to behave ethically and contribute to economic development

while improving the quality of life of their workforce and their families as well as of the local

community and society at a large.”

Dimension

The dimension of corporate behavior encompasses those activities of the corporate that ensure

responsible and just behavior towards society. There are four major dimensions of corporate

behavior:

Setting boundaries of learning accountability and responsiveness.

Building activities that form the basic learning.

Creating measures that validate and make knowledge effective, and so form the basis for

decision making and action.

Institutionalizing trust in ways that create a virtuous circle of practice and further

engagement with stakeholders.

Fusion did their CSR activity through Fusion Saksham Development Foundation in 2010. In the

past they were involve in various activity such as:

Focused health camps in Anaemia.

Street play/ nukkad natak to generate awareness on financial literacy among clients /

potential clients.

HIV awareness campaign to generate awareness about the AIDS among the targeted

members.

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Skill Development

After 2010 there was no activity in the Saksam Foundation. The organization wants to restart its

CSR Activity from this year through Fusion Saksham Foundation from this year.

1.5 Culture

1.5.1 Vision

• A self-sustainable financial institution which leverages the distribution network to channel

other products & services

1.5.2 Mission

• Aims to provide underprivileged and under-banked with economic opportunities to

transform the quality of their lives

Major Players of Microfinance Company in India

SL No. COMPANY NAME

1 Ujjivan Financial Services Private Limited

2 Cashpor Micro Credit

3 Equitas Microfinance Private Limited

4 Bandhan Finance Services Private Limited

5 Annapurna Microfinance Private Limited

6 Fusion Microfinance Private Limited

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Chapter – 2 Job Description

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Job Description

Designation: Financial operation trainee (SPM Intern)

Department: Social Performance Management

Reporting Manager: Miss Shalini Singh

Timing: 10:00 am to 6:30 p.m.

Location: Naraina Vihar, New Delhi

Key Responsibility:

Analysing the Social performance Assessment Report of Fusion Microfinance and

comparing it with other top Microfinance companies of India.

Analysing the Corporate Social Responsibility to top Microfinance Company

Preparing various reports such as:-

(i) Technical Assistance Assessment Report

(ii) Client Grievance Redressal Report (Jan-Mar 2015)

(iii)Social Performance Assessment Report and Action Plan

(iv) Training cum workshop on Responsible finance and client Protection Report

(v) The detail about other Microfinance companies (Ujjivan, Cashpor, Bandhan, Equitas, and

Annapurna) CSR activities, financial literacy.

(vi) The detail list of SPM activity done by the microfinance companies (Ujjivan, Cashpor,

Bandhan, Equitas, and Annapurna) and comparing the activities with Fusion and giving

suggestion to improve its SPM.

(vii) Prepared list of women schemes passed by Government of India which help Fusions

Clients

(viii) Prepared presentation for CSR proposal to the corporate in India.

Grievance handling of clients as well as employees.

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Chapter – 3 Literature Review

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Literature Review

I researched many books, blogs, internet, websites and articles about Social Performance

Management (SPM) and Corporate Social Responsibility (CSR) to know what has already been

done in this field. The few of the previous research are also done on SPM & CSR; some of them

are as follows:

Ref.: Academic Report (July 2009) Maria Luque Calvo states that if CSR a Microfinance

activities are merged then it will be a win-win opportunity because if CSR budget is

directed towards microfinance activity which could effectively empower the lower

segment of society financially, thereby leveraging the creative and entrepreneurial capacity

of the poor.

Ref: Report (May 2014) Universal Standards Implementation Guide (the Guide) states

SPM strengthen financial performance of the company. This helps in understanding the

needs of the clients and focus on delivery values which help to know what to offer which

facilitates growth in market shares- as clients often choose providers based on the

reputation, product suitability, and customer service. This increases the loyalty of both

customers and employees.

Ref: Report by Barnett (2012) said “CSR encompasses the economic, legal, ethical, and

discretionary responsibility of the organization, business ethics usually focusing on the

moral judgments and behavior of the individual and group in an organization.

Ref: Report by Wardle (2014) “All the institution can benefit by improving SPM practices,

but no two organizations will go about implementing it in the exact same way. Experiences

from wide range of practitioners, including providers and networks who are SPTF

members, demonstrate various entry points to change. Some use SPM to address a

particular organizational challenge, such as employee turnover, client dissatisfaction, or

failure to reach target clients.

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Chapter – 4 Research Methodology & Data Collection

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4.1 Research Methodology

Under this study I will be collecting the data provided by the organization itself and company’s

website. The Ratios are effective tools to evaluate the Receivables Management. Before we get

into the analysis, it is important that we get into the nuances of the important ratios that shall be

covered and diagnosed in the course of the paper. Hence in the present study ratios will be used

for the purpose of analysis.

Research Design Descriptive research

Data collection methods Secondary data collection

Data Source Website of the various companies, Research paper, Annual

Report

Time Period of Research

Study Two years (2013 & 2014)

Sampling method NON

Sample Companies

Minimum six are as follows:-

1. Ujjivan Financial Private Limited

2. Cashpor Micro Credit

3. Equitas Microfinance Private Limited

4. Bandhan Finance Services Private Limited

5. Annapurna Microfinance Private Limited

6. Fusion Microfinance Private Limited

Analytical tool

Ratio analysis

Important ratios used will be:-

1. Return on Assets

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2. Return on Equity

3. Current Ratio

4. Debt to Equity Ratio

4.2 Objectives

The objectives of the Project which the researcher has worked for the two months tenure are:

To study the importance of grievances in SPM Department.

To analyse the Social performance Assessment Report of Fusion Microfinance and

comparing it with other top Microfinance companies of India.

To analysing the Corporate Social Responsibility by other Microfinance companies.

To analyse the difference in start-up company and established company in microfinance

industry through financial ratios.

4.3 Data Collection

My project report is On the Job Training (OJT) in which I worked on the topic and collected

following data of Fusion from the company and website along with other microfinance company

of India and listed them below and for reference they are found in the appendixes.

Technical Assistance Assessment Report

Client Grievance Redressal Report (Jan-Mar 2015)

Social Performance Assessment Report and Action Plan

Training cum workshop on Responsible finance and client Protection Report

The detail about other Microfinance companies (Ujjivan, Cashpor, Bandhan, Equitas, and

Annapurna) CSR activities, financial literacy.

The detail list of SPM activity done by the microfinance companies (Ujjivan, Cashpor,

Bandhan, Equitas, and Annapurna) and comparing the activities with Fusion and giving

suggestion to improve its SPM.

Prepared list of women schemes passed by Government of India which help Fusions

Clients.

Prepared presentation for CSR proposal to the corporate in India.

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My main works were on Microsoft Word, Microsoft excels and Microsoft power point and there

is no questionnaire or use of other tools. I researched about various topics of CSR, in order to

restart the CSR work in Fusion through Fusion Saksam Foundation which would help mostly the

clients of Fusion.

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Chapter – 5 Analysis

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5.1 Analysis of Data

The Analysis took place afterwards which is a crucial step towards finding out the conclusion or

Objectives of the Project report. I took 5 companies which are related to Microfinance business

and all of these five companies are private companies. These companies are not listed on any of

the stock exchange. The Idea to choose these five companies is come from the fact that all of these

are providing somehow similar services to their clients as is provided by Fusion Microfinance

Private Limited. The companies which I choose are as follows:-

1. Ujjivan Financial Private Limited

2. Cashpor Micro Credit

3. Equitas Microfinance Private Limited

4. Annapurna Microfinance Private Limited

5. Fusion Microfinance Private Limited

5.1.1 TOOLS OF ANALYSIS

First I have analyzed the data through SWOT analysis because after working in Fusion I observed

that what its strength, weakness are and what are the major threats which Fusion is facing and will

face in future & the various opportunities which Fusion can grab and become the top Microfinance

companies in India.

The other tools which can be used to analyses the finding are the financial ratios of all the five

companies (Ujjivan Financial Private Limited, Cashpor Micro Credit, Equitas Microfinance

Private Limited, Annapurna Microfinance Private Limited & Fusion Microfinance Private

Limited) and proving the objectives which I have set for this project.

5.1.2 SWOT ANALYSIS

Below are the SWOT (Strengths, Weaknesses, Opportunities and Threats) of Fusion Microfinance

Private Limited.

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Strength

Experienced senior management team :

The management team of Fusion has quite experience people and are from

diversified background.

Great IT system :

All the work of Fusion is IT based, even at the branches of Fusion

implemented Shakti (developed by Qbrik Chennai), a core microfinance solution

with real time and web based on cloud computing.

Clear defined HR policies and procedures

Fusion is using technology for administrative excellence like working towards

software for leave and payroll management. They are creating a focus on people as

the primary competitive advantage by creating a culture of training and learning.

Clear visionary goals

The goals and vision of the company are well decided in advance and the whole

management is working towards it.

Transparency at all levels

All the rules, policies and guidelines of RBI are well explained to the clients as well

as employees of Fusion.

Plans for value added and livelihood support services

Fusion not only works for the providing services to the clients but also work for the

other skill development of them.

Weaknesses

Limited resources

Fusion has scarcity of resources of both manpower and the materials as the turnover

is quite high.

Micro managing

Fusion completed its five years but still working at micro level in India and is

expanding slowly.

Start-up organization

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Fusion is a start-up company so its financial ratios are quite low as compared to

other microfinance companies.

Holding on to the staff

Fusion is quite dependent on one another and if one leaves the work load on another

person increases.

Refine the processes for growth

As the microfinance industry is growing day by day the growth rate of Fusion is

quite low.

Opportunities

Huge potential for this market

The Microfinance Industry is growing day-to-day so Fusion should grab the growth

opportunity and work to become the top microfinance companies of India.

Scope of introducing livelihood related services

Other than financial services to the clients Fusion can work upon providing other

services to its clients and also increase its clients circle.

Financial crunch is helping organization to be cost effective

The various companies and organizations are helping start-ups with the financials

so Fusion should also understand this and work to convince various organizations

to provide funds to Fusion to expand itself and to improve the lacking areas.

IT systems

Fusion has strong IT system but as the time is changing and the technology is

improving day-to-day, so Fusion should recognize this technology which will make

its working more efficient and keep on adapting to the change.

Threats

Financial Crisis

Paying back of loans with interest is the major threats for Fusion from the clients.

Increasing competition

The competition in this sector is also increasing and the number of players has

increased over the period of time.

Disorganized banking infrastructure

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The microfinance industry is still disorganized and RBI has leaded only few

guidelines which are not followed properly. So RBI should become more strict and

make this industry more organized.

Political instability

Fusion has instable management system so it should work and stabilize the system

so the turnover should also decrease.

5.1.3 Fusion Grievance report for the quarter (Jan-April) 2015:-

In the last quarter, from January to March 2015 we have received 93 calls in total regarding client

grievances. The calls were received from different branches and the natures of grievances were

also varied. The nature and number of grievances are mentioned in the table below:

Nature of Grievances No. of Grievances

Complaint 13

Enquiry 70

Information 10

Total 93

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Graph 1:- The Bar chart view of the grievances (Jan-April)

This analysis of client’s grievances tells us how Fusion is handling its client’s grievances and what

are what types of calls they get. Like in the above chart there are 93 total calls which fusion receive

in an quarter in which 13 are complaints about the employees, 70 are the enquiries about Fusion’s

services and the various meetings to be held and 10 information seeking new clients.

5.1.4 Financial Ratios

Return on Assets Ratio: ROA gives an idea that how the companies are using its assets to

generate earnings. ROA is also referred as return on investment.

Net Profit / Total Assets *100

Return on Equity Ratio: ROE helps in measuring the company’s profitability by revealing how

much profit a company is generating money from shareholders fund.

Net Profit / Shareholder’s Equity *100

Current Ratio: Current Ratio is the ratio to measure whether the firm has enough resources to

pay its debt over the next year.

13

70

10

93

0

20

40

60

80

100

Complaint Enquiry Information Total

No. of…

(35)

Current Assets / Current Liability *100

Debt to Equity Ratio: D/E is the ratio that gives a relative proportion of the shareholders equity

and debt used to finance the assets of the company. It is also known as risk, leverage.

Total Liability / Shareholder’s Equity *100

ANALYSIS

2013

YEAR UJJIVAN EQUITAS ANNAPURNA CASHPOR FUSION

ROA 4.91

2.57 2.74 3.29 0.40

ROE 86.22

13.84 13.80 255.40 2.58

CURRENT

RATIO

175.96 205.83 118.20 166.63 206.46

DEBT TO

EQUITY

RATIO

119.69 250.01 130.95 543.07 124.17

(36)

Graph 2:- indicates that the ROA, ROE, Current Ratio and Debt-to- Equity Ratio of 2013 of

the companies (Ujjivan, Equitas, Annapurna, Cashpor & Fusion)

2014

YEAR UJJIVAN EQUITAS ANNAPURNA CASHPOR FUSION

ROA 1.51 4.34 2.59 3.04 2.70

ROE 41.9 28.45 22.5 34.10 28.11

CURRENT

RATIO

159.4 140.71 129.7 162.8 129.4

DEBT TO

EQUITY

RATIO

152.32 166.39 170.77 474.25 144.57

0

100

200

300

400

500

600

UJJIV

AN

EQ

UIT

AS

AN

NA

PU

RN

A

CA

SH

PO

R

FU

SIO

N

2013

Return on Assets

(ROA)

Return on Equity

(ROE)

Current Ratio

Debt-to-Equity

Ratio

(37)

Graph 3:- indicates that the ROA, ROE, Current Ratio and Debt-to- Equity Ratio of 2014 of

the companies (Ujjivan, Equitas, Annapurna, Cashpor & Fusion)

This graph shows how Fusion being a start-up company has less financial ratios as compared to

other companies as there were established before and they have stable income, assets & equity.

Comparing the 2013 & 2014 graph we can see that Fusion is growing in the same pace in which

all the well established companies are growing and if Fusion grab all the opportunities and the

turnover of the employees and overcome other threats then it will also become one of the top most

microfinance company of India.

050

100150200250300350400450500

UJJIV

AN

EQ

UIT

AS

AN

NA

PU

RN

A

CA

SH

PO

R

FU

SIO

N

2014

Return on Assets

(ROA)

Retrun on Equity

(ROE)

Current Ratio

Debt-to-Equity

Ratio

(38)

5.1.5 Comparison of SPM work of different Microfinance companies

Ujjivan Fusion

Client remain idle for

a specific periodClient donot remain idle

Loan product design

to meet client

requirement

Product are design as per

the company requirement

Transparency

Communicating

product pricing

information to client

during projection

meeting, compulsory

group training and

group recognition

tests.

Fusion provide training to

the clients and also term and

conditions are explained

Introdction of

Customer Connect

Program

Centre Meeting

checklist are

checked for verbal

complaints

There is no Centre meeting

checklist

If a complaint is not

solved within 1

month then can be

appealed to officer-

in-charge of the

Regional Officer of

DNBS of RBI

Bangalore.

There is no such provision

for Reasonal RBI officer.

We try to solve the

complaint within TAT i.e.,

15 days

Avoidance of Over-

indebtedness

1 CPP

2 Grievances

Comparison 1 :- Ujjivan & Fusion

(39)

Cashpor Fusion

Communicate term and

condition for product and

servies to the client in the

official manner

Communicate term and

condition for product and

servies to the client in the

vernacular lanaguge

Communicate in writing about

charges levied for all finacial

services rendered.

Communicate in writing about

charges levied for all finacial

services rendered.

Avoiding Over-

indebtedness

Proper due diligence as per

their Internal Credit Policy

Proper due diligence as per

their Internal Credit Policy

Donot breach the total debt

limit for any client

Donot breach the total debt

limit for any client

Establish dedicated feedback

and grevance redressal

mechanism

Establish dedicated feedback

and grevance redressal

mechanism

Inform Client about the client

greviance mechanisms

Inform Client about the client

greviance mechanisms

One grievance redressal

office should be presentto

address complients

One grievance redressal office

should be presentto address

complients

Appropriate mechanism for

ensuring compliance of Code

of Conduct

Appropriate mechanism for

ensuring compliance of Code

of Conduct

TRANSPARENCY

CPP1

Greviances2

Comparison 2:- Cashpor & Fusion

(40)

Bandhan Fusion

There is a helpline

number to resigster the

complaints

There is a helpline number

to resigster the complaints

The number is printed on

the passbook of the

clients

The number is printed on

the passbook of the

clients

There are complaints

box in every branch

office

No complaint box in any

branch office

Any complaints can be

directly sent via email

No email can be sent for

any complaints

Grievances1

Comparison 3:- Bandhan & Fusion

Equitas Fusion

Approch BM with the

complaint

Call toll free number if

the complaint is not

solved

Call toll free number

If the complaint is not

resolved write a letter to

the head office

There is no provision for

writing the letter for

complaints

After 14 days the

complaint is yet not

resolved then the letter

is send to the MD of the

company

1 Grievance Redressal Machanism

Comparison 4:- Equitas & Fusion

(41)

Annapurna Fusion

Repayment capacity of client

is taken into consideration.

Repayment capacity of

client is taken into

consideration.

Reasonable steps to ensure

credit extention to the clients

No credit extension for

clients

Transparently discloser of all

the terms and conditions

Transparently discloser

of all the terms and

conditions

Debt collection wont be

abusive and coercive

Debt collection wont be

abusive and coercive

and time period is also

set

High ethical standard when

interation with client

High ethical standard

when interation with

client

PPI is used as a social tool in

Annapurna

PPI is used as a social

tool in Annapurna

Activities for Social

and Inclusive

Development

Promoting gender equality

and empowering womenEmpower women

Training & Capacity Building

for clients as well as

employees

Training & Capacity

Building for clients as

well as employees

Product for Persons with

disability (PwD):Only product for women

Education loan no education loan

Micro-Enterprise

Development loan

no enterprise

development loan

Insurance Services Insurance Services

1 CPP

2 SPM

Comparison 5:- Annapurna & Fusion

(42)

5.1.6 Comparison of CSR Activity of different Microfinance companies

Ujjivan Cashpor Equitas Annapurna

1

Minor

constructions and

renovations such as

bus stands (waiting

sheds), public

parks, schools and

anganwadis, public

toilets, water

connections and

public taps, public

library,

Construction of

foot over bridges,

reconstruction /

renovation of

existing damaged

infrastructure etc.

Child illness,

Women's health,

Family

planning,

diarrhea

At Equitas Gyan Kendra,

members are provided

vocational training to help

augment their income levels.

Equitas Trainers will train

clients in various skills like

making candle, agarbathi,

phenyl, detergent, tailoring,

Embroidery, masala powder,

pickle, jam making etc in Cities

and Towns and Agri based

activities like bee keeping,

Mushrooms, rabbit-rearing,

basket making , fibre extraction

in Semi urban and rural areas.

In a short span Equitas has

imparted training to 368221

members. As a next step,

Equitas is exploring the

potential for providing market

linkages to such training

programs. A pilot on market

linkage for clients is currently

on in manufacturing raw

agarbathis with ITC and for

papads with Lijjad papads

Promotion of education,

awareness campaigns,

child welfare &

rehabilitation of

differently-abled,

gender equality,

empowering women

and employment

enhancing 1vocational

skills, · Community

development, health

care, sanitation,

reducing child morality

and improving maternal

health, combating

human

immunodeficiency

virus, acquired immune

deficiency syndrome,

malaria and other

diseases; and

eradicating extreme

hunger and poverty.

(43)

2

Rain water

harvesting,

recharge-pit for

bore wells, solar

lamps at public

places (e.g. Govt

hospitals), water

check dams and

form ponds etc

1. All of the 25

female staff

members had

provided

training to their

co-workers and

they in turn have

created

awareness

among clients

on Child Health.

All of these

trained staff

members are

also trained on

Diarrhea, the

next module,

and they have

already started

creating

awareness

among their

clients. As the

center has

rotated so they

have started

facilitating at

their new

centers.

Equitas conducts eye, dental,

genes, veterinary(for cattle’s of

members) and General health

camps by partnering with

medical service providers such

as Shankar Nethralaya, Aravind

Eye Hospitals, Vasan Eye Care,

Agarwal Eye Care, Rajan Eye

care, Uma Eye Care, Deepam

Group of Hospitals, Chettinad,

Ekam Trust for Pediatric care &

Voluntary Health Services

(VHS), Hindu mission, etc.

Apart from screening for

general ailments, eye-check-ups

and cancer screening, the

patients are offered discounts

by these hospitals for Inpatient

treatment thus help them save

on the expenditure, this apart

awareness and health education

is also imparted to help

improve health general hygiene

& living conditions.

This would include

partnerships with

organizations working

in the field of primary

and secondary

education, formal and

non-formal, literacy

programmes,

scholarships etc. The

main focus of

supporting these

programmes is to

ensure basic literacy,

offer vocational

training, and manage

teaching societies and

study centers.

(44)

3

a) Safe drinking

water facility at

public places (bus

stand, schools,

hospitals etc), b)

safety for public

(fencing electric

transforms, road

signals), c) Public

health and hygiene

(supporting PHCs

& maternity homes,

cleaning public

places, clearing

garbage dumps,

providing dust bins,

improving

drainage, area

spraying for

Malaria,

Chikengunya,

Dengue, public

awareness

programs etc.)

2. In Chandauli

District all of

the staff

members have

completed their

facilitation of

Child health

manual. Some

of staff members

have already

been transfer

from Chandauli

to Varanasi so

they will

facilitate child

Health module

at Varanasi

District. Left of

center Managers

of Chandauli

district are not

facilitating the

Health

education

program.

Healthcare is a source of

significant financial stress for

Equitas members. A particular

problem afflicting members is

the lack of access to quality

healthcare; especially for

critical illnesses. Equitas has

installed an inbound call center

to serve as a helpline for

members to obtain information

on treatment of serious illnesses

by quality health-care providers

at a subsidized cost. Equitas has

established partnership with

healthcare service providers;

who will provide their services

either free of cost or at reduced

prices for Equitas members.

This facility is being piloted at

Chennai and has helped

patients obtain prompt access to

healthcare at the right hospital;

and at a reduced cost. The

initial success of this initiative

is set to be bolstered by a larger

network of hospitals that will

be empaneled in the next few

months; and the expansion of

this service to areas other than

Chennai as well.

This would cover the

areas of women

empowerment,

rehabilitation of

destitute women and

children, improving

slum habitat, the

provision of necessary

amenities for

economically

disadvantaged persons,

causes of the elderly.

4

Providing facilities

in schools &

Anganwadis,

Initiatives for Girl

child education,

merit scholarships

for technical

education.

3. All female

center Manager

have been

trained on

Women’s

Health and

completed the

facilitation of

Health

Education at

their centers.

Now we have

start the process

to merge the

health education

program with

healing fields

program.

In another proactive step,

Equitas facilitates conduct of

job fairs for members’

unemployed children with the

help of recruiters and

employers to enable

employment opportunities and

help them with job placements

according to their profiles in

companies like Nokia, Tech

companies, and retail outlets

like Textile showrooms, KFC,

Malls, and Hospitals etc. Till

date we were able to find

gainful employment to over

33309 wards of our member

base

This would cover

partnerships with

organizations that work

in the areas of

rehabilitation of street

children, orphans and

destitute children trying

to integrate them into

mainstream society.

(45)

5

Relief programs

and facilities to

orphanages, old age

homes, mentally &

physically

challenged

personals etc.

As per the plan

to train 80 – 100

clients during 1

year starting

from

September, 2010

in 2 batches, it is

expected to be

completed by

the end of

March, 2011.

The first batches

of 41 clients

have completed

their 1 year

training &

internship on

following topic

and received the

certificate for

training.

Equitas Launched the Health

Helpline Service to its

Customers exclusively. During

Dec.09. This will go a long way

to provide a cost effective,

timely & good treatment for its

customers. Another “Equitas

Initiative” to ensure Good

Health to all its Customers

This would include

partnerships with

organizations working

towards rehabilitation

of physically and

mentally challenged

children/adults. Besides

organizations that work

towards providing

vocational training and

guidance to challenged

individuals with an

effort to make them

economically

independent and

contributing members

of society

(46)

Chapter – 6 Conclusion, Recommendation & Limitations

(47)

6.1 Conclusion

From the overall study of the project, it was concluded that the company Social Performance

Management (SPM) has done maximum of their work in certification, grievance redressed, and

press release. Report for all the investors and re certification of certain certificates which has

expired. The recent task which Fusion is thinking to restart is the Corporate Social Responsibility

(CSR) which is the good move for their client as well as for the community. After comparing the

work of Fusion with other micro financial institution, it’s clear that Fusion can also come in top 5

companies as the work done by others are similar to what fusion is doing. There are few points

which Fusion has to consider after which Fusion will be at same phase as other institutions.

SPM is necessary for the Microfinance companies because it gives good exposure to the

employees as well as the clients about the client protection principle, industry’s code of

conduct.

To restart its CSR Activity, Fusion has to collaborate with other corporate for the fund as

well as it will help its client to get wide exposure.

6.2 Recommendations

These are the following data recommendation I would suggest to Fusion Microfinance Private

Limited:-

The number of employees should be increased in the SPM Department as only one person

has been working from the time.

The concept of SPM department in a Microfinance company should be clearly told to the

lower level i.e., at the branch level to the AM, DM & RO as maximum of the grievances

are about the policies of the microfinance company.

Installation of complaint box in all the 91 branches of Fusion for widen the reaches of the

clients to the management.

(48)

RBI guidelines to be written in Hindi on the passbook so that the clients understand them

& read when they require.

The company should work on the employee turnover at every level of the organization as

the turnover is increasing day by day.

A separate person should be appointed to deal with the grievance call so that its handled

smoothly, recorded properly, complaints are solved quickly and one person should be

answerable for it.

Company should jointly work upon the restarting of the CSR Activity so that it can start

soon.

6.3 LIMITATIONS

There are various limitations to this project. Some are mentioned below:-

The Scope of the project is limited because I have analysed the company’s specific data

and not the Industry specific data. So the conclusion will only give us the trend and the

Impact on Fusion Microfinance specifically through the various reports and data.

The project’s collection of financial data is also limited to the data provided by the

website and the annual report of the company found on the website of the companies.

(vii)

Appendices

(viii)

Client Grievance Redressed Report (Jan-Mar 2015)

Fusion has a toll- free number where clients can enquire, ask for information, or file their

complaints. We have made our clients express their grievances if they are dissatisfied by our

services, products, staff’s behavior, etc. Due to the grievance redressed system there is trust

between Fusion and its clients and they feel free to contact us for complaints, general information

or for any kind of enquiry.

In the last quarter, from January to March 2015 we have received 93 calls in total regarding client

grievances. The calls were received from different branches and the natures of grievances were

also varied. The nature and number of grievances are mentioned in the table below:

Nature of Grievances No. of Grievances

Complaint 13

Enquiry 70

Information 10

Total 93

The Bar Chart view of the grievances:-

13

70

10

93

0

10

20

30

40

50

60

70

80

90

100

Complaint Enquiry Information Total

No. of Grievances

(ix)

A few enquires of the clients were:

Client enquired about 2nd cycle loan process.

Client queried about the loan repayment meeting.

Client enquired about the spouse insurance amount.

A few information obtained by clients were:

Client informed about his wife death and also asked for further details.

Information about 30 new members from Rasulpur are ready to form a group.

Client Ravikant Informed about Meenu’s husband death.

We have received 13 complaints during the period January to March 2015. Detail of all the

complaints with action taken is mentioned below:

Date of

Reporting

Complaints Action Taken

6 Jan 2015 Deepak brother of Angoori Devi

called to complain that Manish

Patel had a word with Angoori and

asked her to visit and meet her in

person then after the loan would

be processed. Angoori Devi had a

fight with her husband and she had

consumed poison and is admitted

in the hospital. Client's family

members intimated that they were

more likely to take police action, if

a proper action is not taken by the

organization.

Informed to the AM/DM via mail as

call was not getting picked.

(x)

4 Jan 2015 Kusum (client) complained about

Sachin (RO) that he wasn’t taking

the documents for processing the

loan.

Sachin (RO) didn’t accept the loan

document because there was shortage

of client’s attendance.

11 Feb 2015 Phulmati (client) complained that

Rajkamal (RO) didn’t come to

collect repayment amount for 2

months.

Anoop (AM) was informed about the

collection of repayment amount as

Rajkamal (RO) has been absconded

from the branch.

11 Feb. 2015 The Client complained that Sachin

Lamba (RO) is not coming on time

to collect the repayment amount.

Sachin Lamba (RO) was instructed to

be on time for the repayment meeting.

11 Feb. 2015 Pawan (Third Party) complained

on behalf of Guddi (Client) that

Kulwant (RO) takes commission

from the clients.

Kumar Gaurav Singh is verifying about

the same and soon the status will be

reported.

13 Feb. 2015 The client complained that he

hasn’t received the loan amount

which was sanctioned in

December.

The detail explanation about the delay

was given to the client.

24Feb 2015 The client enquired why BM

denied forming the center.

Center should not contained 100%

Community of Muhammadan as per

company law

26 Feb 2015 The client complained that Ravi

(RO) has instructed the clients to

visit the branch office for the

repayment of loan.

A conference call was made between

the client and the RO (Ravi) and the

reason for the same was explained to

the client.

(xi)

13 Mar 2015 The client complained that

MithIlesh (BM) doesn’t talk to the

lady clients properly and uses

abusive languages and Sukhvinder

(RO) demands commission.

MithIlesh (BM) was warned for his

behavior.

19 Mar 2015 The client complained the

Mithilesh Chandra (BM) and

Sukhvinder Singh (RO) denied the

loan for the 2nd cycle and are

asking for personal favor.

Mithilesh Chandra (BM) deliberately

rejected the 2nd cycle loan because of

client’s behavior during 1st cycle loan.

19 Mar 2015 The client complained that the

Centre Leader (Babita) is forming

a new group and taking money

from new clients.

The problem was informed to the

prospective BM and was instructed to

visit the area and form groups as per the

process.

19 Mar 2015 Shweta has complained that

Babita (third person) is taking

money to form a new centre.

The problem was informed to the

prospective BM and was instructed to

visit the area and form groups as per the

process.

26 Mar 2015 The client complained that he was

not given reason for his ejection

from the group.

RO denied the loan because of client’s

attendance.

(xii)

Balance Sheet of Different Microfinance Companies

Particulars

Equity & Liability

Shareholder's Fund

Share Capital 655,813,630 655,813,630

Revenue & Surplus 2,557,555,695 3,213,369,325 3,069,458,262 3,725,271,892

Non Current Liability

Long term borrowings 3,834,757,100 5,651,471,277

Long term provisions 11,607,790 3,846,364,890 22,963,636 5,674,434,913

Current Liability

Short term borrowings 40,017,277 19,274,168

Trade payables 47,985,072 50,585,501

Other Current Liabilities 6,310,281,656 11,083,272,760

Short term Provisions 144,398,824 6,542,682,829 234,176,292 11,387,308,721

Total 13,602,417,044 20,787,015,526

Assets

Non Current Assets

Fixed Assets

Tangible Assets 82,787,085 98,082,075

Intangible Assets 28,592,170 111,379,255 29,169,333 127,251,408

Non current Investments 1,000,000 1,010,000

Deffered Tax Assets 40,189,798 68,320,423

Long term loan and advances 33,225,238 51,130,686

Other Non current Assets 1,903,997,415 1,978,412,451 2,383,005,332 2,503,466,441

Current Asstes

Receivables under financial activity 9,473,954,775 13,876,137,361

Cash & Bank Balance 1,786,224,211 3,944,544,641

Short term loan & advances 61,786,206 106,217,035

Other current assets 190,660,146 11,512,625,338 229,398,637 18,156,297,674

Total 13,602,417,044 20,787,015,523

As at March 2013 As at March 2014

Amount in Rupees

UJJIVAN

Balance Sheet

EQUITAS

Balance Sheet as on…

(xiii)

Amount in Rupees

Particulars As at March 2013 As at March 2014

Shareholder's Fund

Share Capital 1,987,500,000 1,987,500,000

Revenue & Surplus 1,126,961,616 3,114,461,616 561,478,520 2,548,978,520

Non-Current Liability


Other long term liability 55,791,792 44,449,683

Long term provisions 67,981,601 5,182,256,216 57,027,291 6,372,891,700

Current Liability


Current maturity of long term borrowings

7,778,333,747 4,212,159,574

Trade payables 93,413,078 64,251,118

Other Current Liabilities 837,062,676 662,973,761


Total 17,546,432,989 14,108,439,324

Assets

Non-Current Assets

Fixed Assets

Tangible Assets 23,697,868 25,735,223

Intangible Assets 2,135,624 25,833,492 6,174,387 31,909,610

Non-current Investments 2,000,000 36,012,093

Deferred Tax Assets 102,040,604 76,194,928

Loan term receivables under financing activity

3,738,491,961 2,638,698,579


Other Non-current Assets 534,169,998 4,530,586,047 454,482,490 3,432,921,399

Current Assets

current Investment 34,012,093 39,473,348

Short term receivables under financial activity

8,118,162,120 6,004,571,508




Total 17,546,432,989 14,108,439,324

ANNAPURNA

(xiv)

Balance Sheet as on… Amount in Rupees


Share Capital 186,447,640 129,373,460

Revenue & Surplus 159,947,619 346,395,259 52,978,341 182,351,801


Long term borrowings 591,572,463 238,803,283

Other Current Liabilities

Long term provisions 591,572,463 238,803,283

Current Liability

Short term borrowings

Trade payables

Other Current Liabilities 1,243,417,940 545,978,052

Short term Provisions 4,399,604 1,247,817,544 4,504,956 550,483,008

Total 2,185,785,266 971,638,092

Assets

Non-Current Assets

Fixed Assets 8,598,632 2,124,943.00

Tangible Assets

Intangible Assets 8,598,632 2,124,943.00

Non-current Investments 314,283,228 201,488,647



Other Non-current Assets 557,585,029 318,797,768

Current Assets

Receivables under financial activity

Cash & Bank Balance 830,389,434 203,125,935


Other current assets 53,029,483 1,619,601,605 18,812,258 650,715,381

Total 2,185,785,266 971,638,092

Cashpor


(xv)


Shareholder's Fund

Share Capital 53,900,000 53,900,000

Revenue & Surplus 498,196,914 552,096,914 318,484,739 372,384,739



Long term provisions 4,385,480 2,618,354,249 2,022,341,615

Current Liability


Trade payables 3,267,145

Other Current Liabilities 3,163,514,320 2,277,764,630


Total 6,874,540,429 4,905,162,924

Assets

Non-Current Assets

Fixed Assets

Tangible Assets 9,103,096 4,810,599

Intangible Assets 1,019,766 1,194,492

Loan Portfolio 497,034,212 411,700,362

Non-current Investments

Deferred Tax Assets

Long term loan and advances 872,025 910,946

Other Non-current Assets 333,235,387 841,264,486 303,277,249 721,893,648

Current Assets

Trade Receivables 15,237,829 5,141,928


Loan Portfolio 4,050,470,655 2,879,372,913



Total 6,874,540,429 4,905,162,924

Fusion


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Share Capital 107,029,900 107,029,900

Revenue & Surplus 133,959,679 240,989,579 103,873,345 210,903,245


Long term borrowings 334,105,157 258,540,309

Long term provisions 5,027,884 2,359,286

Other long term liabilities 9,273,064 348,406,105 980,004 261,879,599

Current Liability

Short term borrowings

Trade payables

Other Current Liabilities 850,519,543 326,487,573

Short term Provisions 8,359,508 858,879,051 4,592,243 331,079,816

Total 1,448,274,735 803,862,660

Assets

Non-Current Assets

Fixed Assets

Tangible Assets 12,271,020 2,502,872

Intangible Assets 671,077 529,205

Loan portfolio 248,720,909 71,961,295



Other Non-current Assets 69,031,233 336,807,468 41,365,842 120,308,831

Current Assets

Current investments 22,928,776 207,908,449

Cash & Bank Balance 253,360,857 88,417,151

Loan portfolio 778,842,073 342,392,856


Other current assets 45,187,395 1,111,467,266 39,001,809 683,553,829

Total 1,448,274,734 803,862,660

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(xviii)

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Documents

Final Report of Supriya Singh