annual report 2013 14

iASA Annual Report 2013-14

VISION

CORE VALUES

MISSION

The vision of ASA is to establish a poverty free society.

The institutional mission of ASA is to support and strengthen the economy at the bottom of the socio-economic pyramid by facilitating access to financial services and provide primary healthcare, education, water and sanitation facilities from own resources generated from microfinance program for the poor, marginalized and disadvantaged.

Innovative and non-conventional management for achieving cost-effectiveness and sustainability

MD. SHAFIQUAL HAQUE CHOUDHURY

iiiASA Annual Report 2013-14

We, as a poverty affected nation by now have made appreciable achievement in its alleviation as the number of the poor has dropped below 30 percent of total population which is closer to the desired goal. This success came through the collective effort of the government, private sector and the NGOs. No doubt this is a milestone feat towards establishing a society free from the curse of poverty. However, in spite of this noteworthy success, our mission will have to be pursued until the ultimate target is achieved.

Despite multifaceted constraints in economy, Microfinance, the core program of ASA has shown consistent growth during 2013-14 fiscal year. We brought some time-befitting reform in the program to transform it into more client-friendly and responsive one. ASA Microfinance program was able to disburse Tk. 10,500 crore (USD 1.31 billion) during this period. Even in high inflation we were able to manage the program at minimum operational cost this year also. This further solidifies standing of our organization.

I feel delighted to share the fact that ASA has not only been managing microfinance sustainably but also proving social services from its own income. This is a rare example in development practice and the approach followed by a number of NGOs entirely.

To keep the process of poverty reduction going and for the sustainability of its achievements, more social issues like health, education, sanitation, hygiene have to be given due emphasis because these are interrelated with efforts of curbing poverty. Lack of education and sound health pushes poor people into chronic poverty.

We redesigned and extended the jurisdiction of the non-financial programs in the light of above mentioned realities during 2013-14 fiscal year. The Non-financial Programs of ASA on Health Awareness, Primary Education Strengthening and Physiotherapy -- have been providing access for more people in new localities in the country. About five million underprivileged people mostly living in rural and remote areas are being benefited from these services at present. We emphasized maximizing outcome of these programs to benefit greater number of less privileged groups.This year, we initiated Water and Sanitation Program for increasing production and marketing capacity of small scale sanitation entrepreneurs. Under this program financial and technical supports are being provided to them so that they are able to develop quality sanitary products according to the purchasing power of the poor and the low income people. Besides, Integrated Health and Education Program and Vermicompost Program have been launched in the last quarter of this fiscal year. These new programs aim at extending primary healthcare service to the less-privileged and increasing use of compost manure to improve agriculture production while keeping environment free from degradation. In addition, ASA provides cash health assistance to its clients for minor illness from each branch and also provides bigger amount up to Tk. 50,000 as grant for the treatment of heart, kidney, cancer and other fatal ailments to the clients.We have established ASA Medical Assistant Training School (MATS) at Chunarughat Upazila,

Habiganj in September 2013. In March 2014, ASA MATS started academic activities formally with its initial batch of 39 students. A significant number of them were belonging to the poor households. As a country with insufficient number of doctors for its people, ASA MATS will discharge a vital responsibility of creating undergraduate medical assistants who will have a very important role to play in improving public health. ASA University and Hope for the Poorest (HP), two sister concerns of ASA, attained considerable progress in their respective domains of education and welfare service during 2013-14. Furthermore, Technical Assistance (TA) service of ASA for replicating microfinance and its further extension in a number of Asian and African countries gained momentum during this period as increasing number of ASA officials visited those countries for the purpose. Altogether, we left behind 2013-14 with a mixed bag of experience as we were able to reach millions of deserving people through our passionate and caring financial and non-financial services. We are committed to reach more helpless people as well as more underdeveloped areas with more crucial services for the common mass in the coming years.We are grateful to MRA for quick and positive disposal of our proposals and initiatives for social development out of the surplus income of ASA microfinance program.

Md. Shafiqual Haque ChoudhuryPresident

ASA.

PRESIDENT’SDeskFrom the

The fiscal year 2013-14 was very significant for us as well as for Bangladesh because 2015, the target year for achieving Millennium Development Goal, is knocking at the door. We are standing less than a year away from the much talked about timeline of global poverty reduction. The United Nations has set the tag to cut poverty of the world by half by this time.

The logo of ASA contains two human hands at the bottom, the shining sun in the middle and the circle depicting horizon on the top.

The sun in the logo symbolizes the source of all energy or resources, the two hands are the hands of the struggling poor people and the circle at the top is the horizon of the eternal blue sky.

The logo therefore epitomizes that poor people are capable of gripping the source of energy or resources through widening their knowledge and reach up to the horizon with the institutional support provided by ASA.

Interpretationof theLogo

ofASA

vASA Annual Report 2013-14

viASA Annual Report 2013-14

A Commitmentfor

Social Rejuvenation

viiASA Annual Report 2013-14

CONTENTSCONTENTS01 Governing Body

02 Tributes to Mahbubul Alam

03 Microfinance Program

04 Case Study

05 Savings Program

07 Loan Insurance

08 Remittance Service

09 Agribusiness Project

10 Vermicompost Project

11 The Unique Features

13 Milestones

15 Achievements &

Recognitions

17 Managment Team

18 Organogram

19 Non-Financial Program

20 Primary Education

Strengthening Program

21 Physiotheraphy Program

22 Health Awareness Program

23 Health Welfare Program

25 New Initiaves of 2013-14

28 Training

29 Research and Documentation

31 Exposure and Internship

33 TA Service

35 Hope for the Poorest (HP)

37 ASA Medical

Assistant Traning School

39 ASA University

43 Events

45 ASA at A Glance

46 National Coverage

47 Projection for 2014-2015

48-66 Audit Report & Financial

Statements

i Vision, Mission, Values

iii From the President’s Desk

iv Interpretation of the

Logo of ASA

vii Contents

GoverningBody

01 ASA Annual Report 2013-14

Mrs.Taherunnessa Abdullah CHAIRPERSON

Md. Shafiqual Haque ChoudhuryMEMBER SECRETARY

Mr. Alauddin Ahmed TREASURER

Mr. Mahbubul Alam MEMBER

Prof. Nurul Islam MEMBER

Mr. Matiur Rahman Chowdhury MEMBER

Mrs. Rabeya Akter Choudhury MEMBER

Dr. Dalem Ch. BarmanMEMBER

02ASA Annual Report 2014

Tributesto

MAHBUBUL ALAM

Member of ASA Governing Body and a veteran journalist Mahbubul Alam passed away on 6 June 2014 at BIRDEM hospital in Dhaka due to old age complication. He was 78. Mahbubul Alam was as an Advisor to the Caretaker Government during 2006-07. Late Muhbubul Alam was associated with ASA as a member of its Governing Body over two decades. He played a significant role in ASA’s transition from a medium NGO to the largest and best MFI of the world. As a gentleman par excellence he was a person with a pure heart and great human qualities. At his demise we lost a friend, philosopher and guide and ASA lost a guardian.

ASA President Md. Shafiqual Haque Choudhury expressed profound shock and sorrow at his demise. He praised the contribution of Mr. Alam, held him in high esteem and termed his death as an irreparable loss to the nation.

We pay our highest regard to the benevolent human being and a true patron of ASA. His works will be a source of inspiration to us and he would remain memorable forever.

With a vast network of grassroots level outreach comprising 2931 branches across the country ASA Microfinance Program provides financial inclusion offering appropriate financial assistance to help the lower income segment, economically disadvantaged groups, smallholder farmers, tenants, climate victims, people affected by the natural disasters etc. and helping them improving their economic condition and in turn reducing their poverty. In realizing its objective, ASA has concentrated in transforming its loan products and other financial services into more client-friendly and responsive initiatives to the target people. A significant number of branches had been shifted to the suitable localities making available hassles-free service to the clients in their doorsteps.

The organization disbursed an amount of money totaling BDT 10,500 crore (USD 1.31 billion) as loan to about five million member-borrowers during 2013-14 fiscal year. A recent survey reveals that about 80 percent clients of ASA use their loan money in agriculture and agribusiness activities. This means that ASA microfinance has been playing a significant role in improving agriculture production

ASA will continue to keep reforming of its microfinance program according to the changing necessity of the clients so as to support and strengthen the economy at the bottom of the socio-economic pyramid. The organization has set a target of disbursing loan amounting to TK. 12,000 crore (USD 1.5 billion) in the next fiscal year.

FINANCIALPROGRAM

Microfinance Programin Bangladesh which in turn is facilitating to ensure food security of over 150 million population of the country. This fact inspires us further to scale up the program as well as outreach according to the growing demand of agro-sector of the country.

Poverty scenario of Bangladesh is changing fast. In early part of 2014 Government of the country declared that about 27 percent of its people live below the poverty line. This figure is close to achieving the target of poverty status within 2015 as Millennium Development Goal set by the United Nations. This laudable achievement came as a result of combined and relentless efforts of the GO, private sector and the NGOs to improve living condition of the downtrodden people. Rural lives, livelihoods and economy are now changing faster with fast disappearing poverty. People of the rural areas are increasingly involved in different economic activities and their income and purchasing power have increased. For consolidating the positive trends in country’s economy ASA microfinance program has all along been playing a substantive supporting role.


BDT 10,500 crore (USD 1.31 billion) disbursed as loan to about 5 millionmember-borrowers

CASE STUDYAs the family size of Anowara was getting bigger so was the intensify of poverty. In spite of joint earning the couple could not maintain their big family. Anowara started cow rearing at her slum to earn more alongside her regular work. They got some relief from the hardship because of additional income from cow rearing but could not fully overcome poverty and address needs.

For want of money she could not expand her business. Then she contacted ASA and sought a loan. ASA officials considered Anowara’s request and provided a loan in the quickest possible time. Anowara invested the borrowed money for expan-sion of her dairy farm. With this investment the dairy farm got revitalized bringing in significant increase of income from the produce. Number of cattle of the farm increased to seven.

Among them two cows now give 30 liters of milk per day.

Anowara’s husband Milon Mia is now fully engaged in the farm. He looks after the cattle and sells milk. The couple engaged their two sons in the dairy farm as well and later could manage to send one of them to a foreign country. All six daughters and sons got married. Anowara and Milon Mia managed the expenses of their children’s marriages out of the earning of this farm. Anowara joined ASA as primary loan borrower. By dint of hard labour she graduated herself as a special borrower. This year she borrowed a loan amounting to Tk. 1,50,000 from ASA and invested the full amount for further development of the farm. Her present net income is Tk. 30,000 per month. The market price of her cattle is about Tk.

7,00,000. From the earning she could make four tin-roof houses and furnish them. She bought a television set and a refrigerator out of her family income also.

While Anowara was talking about the ups and downs of her struggling life in Agargoan slum alongside some high-rise buildings she looked confident and satisfied. During the discus-sion she was telling firmly that the farm would get bigger soon and it would play a vital role in meeting demand of milk in this area of Dhaka city.

ANOWARA an inspiring woman

About 40 years back, a newly married Anowara Begum came to Dhaka with her husband to live a better life from a remote village. Anowara and her husband Milon Mia took shelter at a slum of Agargoan area in Dhaka city. Her husband worked as a day laborer and she managed a job of cleaning houses and offices in the adjacent area. With their income the couple barely could manage the living costs. They were passing through poverty and financial uncertainty. Gradually, Anowara became a mother of four sons and two daughters.

04ASA Annual Report 2013-14


SAVINGS PROGRAM

Saving is one of an essential component to improve economic status of clients leading to their poverty alleviation. Making the poor people aware about the significance of saving and creating savings attitude are important operating approaches adopted by ASA in its microfinance program. Presently, the organization is offering three types of savings products: i) General Savings and ii) Long-term Savings to the clients and service recipients according to the income and financial

competence. While general saving at the lowest rate is mandatory long-term savings are optional.iii) Capital Build-up Savings

Motivating members to increasingly engage in savings from

income out of their income generating activities (IGAs);

Developing a capital fund for their additional income generating

activities (IGAs);

Savings to form a principal source of capital for poverty alleviation

program;

Assisting poor people to attain self-sufficiency;

Creating a formidable funding source to meet family needs;

Overcoming helplessness in natural or other disasters.

Objectives of the Savings Program:

ASA offers client friendly process to poor depositors who are not welcomed

by commercial banks because of their lower savings.

Petty balances after weekly repayments may be deposited.

Seasonal balances that are normally not deposited in formal banks for lack

of adequate time can be deposited as savings along with weekly or

monthly repayments.

Voluntary savings can be deposited or withdrawn at will of the member.

In addition to general weekly or monthly savings group members may

engage in voluntary savings and obtain following benefits:

Voluntary Savings:

Monthly savings amount may be Tk. 50, Tk. 100, Tk. 200, Tk. 300, Tk. 400, Tk. 500

and Tk. 1000. No member can deposit per month above Tk. 1000.

Duration1-60 months61-120 monthsAbove 10 years

Interest Rate6% (compound)9% (compound)12% (compound)

LTS aims to ensure future financial safety and security of a family.

This is not compulsory. Its duration is 5 years to 10 years, but a

depositor can withdraw it anytime. Interest rate is as follows:

Long-term Savings (LTS):


Highlights

Capital Buildup Savings Fund aims to provide security through financial assistance

to the family on normal or accidental death of the group member.

Capital Buildup Savings Fund (CBSF):

BALANCESAVINGS TOTAL

28,378,125,994Taka

Long Term10,660,934,943Taka

Capital Build-up4,524,793,189Taka

General13,192,397,862Taka

Features of ASA Savings ProductsTYPE FEATURE

General Savings 6% yearly interest.Minimum savings: Tk. 10-70 per week and Tk. 50-150 per month for primary loan; Tk. 50 per week and Tk. 100-250 per month for special loan depending on loan amount.Members may withdraw from their savings any time maintaining a balance of at least 10% of their loan outstanding.

Voluntary Savings

6% yearly interest.May deposit any amount above their mandatory weekly savings.Members may withdraw from their savings anytime maintaining a balance of at least 10% of their loan outstanding.

LTS 6% yearly interest for a duration up to 60 months, 9% for 61-120 months and 12% for above 10 years. Compound rates are applicable.Members may deposit from Tk. 50 to Tk. 1000 monthly.Members can withdraw from their savings anytime at an interest rate calculated on monthly basis.

CBSF Weekly premium is Tk. 10 or monthly premium is Tk. 50.On death of a borrower his/her family is given twice the deposited amount as security. The duration of CBSF is 400 weeks. For withdrawal before its maturity the borrower is given interest benefit on deposited period at a specific rate.

Specialty of ASA Savings Program:Deposits can be withdrawn at any time.

Savings are fully protected.

Interest rates are competitive.

ASA accepts even very small deposits.

Savings service is provided at the clients’ locality.

Transparent accounting.

Strong MIS.

Compassionate and professional behavior of ASA staff.

Weekly premium is Tk. 10 or monthly premium is Tk. 50.

On death of a borrower his/her family is given twice the deposited amount as security.

The duration of CBSF is 400 weeks. For withdrawal before its maturity the borrower is

given interest benefit on deposited period at a specific rate.


LOAN INSURANCE

CLAIMS PAYMENTTaka 257,151,424

ASA provides Insurance facilities to its clients and beneficiaries to cover her/his death risk and spouse enabling them to enjoy financial assistance from the organization for a certain period of time.

For every loan cyclepremium is Tk. 7 for

female and Tk. 3 for maleborrowers per thousand Tk.

received loan amount.

In case of female borrower, it covers the death risk of

borrower and her husband. But for male borrower ’ death it

covers only the policy holder.


The remittance has become a formidable input for revitalizing the country’s economy. Specially, the rural economy gets a boost when wage earners send money home. Most of them belong to rural households.

But not all their money is sent through the usual/legal banking channel. May be for lack of reliability and other reasons expatriates are reluctant to use banking channel and prefer Hundi or other informal/unauthorized means to send their money home. However, this not only deprives the state of a huge amount of foreign currencies each year but also puts relatives of the wage earners at the receiving end at risk; often they face

considerable difficulties including delay in receiving the remittance.

In view of the prevailing risk, ASA initiated foreign remittance service in 2008 with a mission to offer a safer and faster money transfer to the families of expatriates. ASA has collaboration with National Bank Ltd and Western Union Money Transfer for quick channeling of remittance from different countries.

For the purpose ASA has properly equipped its 1,700 branches, mostly located in rural areas with required facilities for secured and accelerated transfer of remittance.

ASARemittance Service channeled

BDT 8,281 million during 2013-14 FY

REMITTANCE SERVICE

AGRI-BUSINESS Project

With an objective of generating momentum in agriculture sector of the country ASA has been operating Agribusiness Development Project since 2007 under a tripartite agreement of Bangladesh Government and Asian Development Bank. The main focus of the Project is concentrated at providing credit facilities, increasing capacity, assisting to create market linkage and offering technological support to the small and medium agro- entrepreneurs, farmers and traders of the country.

Over the period, the project achieved a notable progress to reach its ultimate goal by extending credit, providing training on livestock, fisheries and high-value crops to the target groups. In addition, under the project assistance was offered to the clients in marketing of their produces with special attention to the women entrepreneurs. Besides, the project is extending support to the clients in participating agro fares and exhibitions so that the farmers/producers can showcase their produces and goods to the consumers and buyers directly without interference of a middleman or broker. The project disbursed BDT 350 million among 4,161 clients and provided training to 593 entrepreneurs and farmers during FY 2013-14.


VERMICOMPOSTProject ermicompost is intended to reduce excessive use of chemical fertilizer ASA took this project as a pilot effort to produce compost fertilizer out of domestic waste, unusable parts of fruits and vegetable, debris in kitchen and faeces of domestic animal by using a species of earthworm. The Vermicompost Project started functioning since April of 2014.

ASA initiates the project to achieve the following targets: Increase use of organic manure; Improve soil fertility; Increase food production to cover food deficit and attain food security; Add moisture and water to preserve capacity of the soil; Regain strength of soil and increase production; Keep ecological balance and protect environmental pollution; Enrich nitrogen, potassium and phosphate in soil; Create jobs and self-employment.

Under the Project training and motivational sessions are being organized in different parts of the country to create entrepreneurship and raise consciousness among the farmers, users and concerned people about the importance and usefulness of organic fertilizer particularly vermicompost in agriculture production, through a process that keeps ecological balance and prevent environmental degradation. The project targets to create jobs and make it as an income earning source in the rural area.

Meanwhile, 10 vermicompost farms cum outlets have been opened in nine districts-- Habiganj, Brahmanbaria, Netrokona, Narsingdi, Gazipur, Manikganj, Gaibandha, Bogra and Pabna. These farms are operating to demonstrate production process and utilization of vermicompost. More vermicompost farms cum outlets would be opened across the country next year.


V

THE UNIQUE FEATURESASAASA has achieved sustainability within a couple of years from the starting of its microfinance program. The innovative policies of the management and cost effective approach in all aspects were key to make it possible within the shortest possible time. Besides, strong determination of the management was also an important factor for attaining self-sufficiency with a steady growth. There are some specific reasons behind this success.

Key features of ASA's innovative management and factors behind success in its overall activities are mentioned below:

Dynamic and forward-looking leadership;

Self-explanatory written working manual;

Decentralization and delegation of authority to the branch level officials and participatory process in decision making;

Specialization in microfinance and rapid expansion policy;

Transparent and faster recruitment procedure;

On-the-job training approach (Each one teach one methodology);

Simple and cost-effective branch structure without a professional accountant;

Simple and least hierarchical organization;

Easy and close communication among officials as well as between officials and clients;

Continuous strong monitoring and supervision from all levels;

Simple and transparent accounting and record- keeping system based on formats;

Opportunity for sharing and discussion to solve problems in the residential office;

Low-cost culture practiced from top to bottom;

Effective fund management;

Members' group transfer among the Loan Officers after every six months;

Diversified loan products to meet clients' demand;

Simple and shorter loan processing;

No collateral for providing loans;

Loan disbursement within 07 (seven) days of membership;

Savings ( short and long term) and Loan Insurance for the clients;

No group guarantee required for providing loan;

No bindings to remain present in the group meetings;

Education loan for members' children;

Male loan for members' husband/guardian;

Opportunity to withdraw savings at any time;

Special loan for natural disaster affected areas;

Health assistance to the clients without taking premiums.


THE UNIQUE FEATURES


ASA Sustainable and Cost-effective Microfinance Model This special cost-effective method of ASA helps a new branch to earn an adequate income to be self-reliant within 12 months of its inception.

Self-sufficiency of a Branch:Key FactorsStaff members are selected quickly equipping through short and practical training.

The branch office structure is standardized and furnished with adequate but simple furniture.

Branch expenditure is standardized with set cost ceilings.

A high number of borrowers, high portfolio per Loan Officer and high fund-revolving rate minimize total fund requirement.

Simple and standardized accounting procedures.

No extra full-time office assistant, technical personnel or security guard.

Borrowers are monitored and scrutinized by the Branch Manager.

Staff members provide ASA with a security deposit (earn interest).

Joint signature required for withdrawal from branch's bank account.

Required daily withdrawal is allowed.

Cheques are preserved by different Loan Officers.

Cash book is maintained by Loan Officers on a revolving basis.

Loan Officers rotate groups after every six months.

District Managers are based in the field.

Central Office staff visit field regularly.

Regular internal audit.

Annual external audit.

Occasional and surprise branch visits by the President of the organization.

Automated A/C, MIS, generated by ASA microfinance management system (AMMS).

AMMS was developed in-house by its own IT experts.

Features SafeguardingSustainability


ASA being specialized in Microfinance program introduced Small Loan, Power Pump Loan and Housing Loan for the clients. These credit programs were initiated as per demand of the clients.

Loan Insurance Premium System was introduced to shield the inheritors of the clients on the latters' sudden demise against the risk in paying back the outstanding loan amount.

Savings provision against loan insurance was introduced.

ASA declared itself as a completely grants/donor free organization.

Small Savings program was introduced for the clients enabling them to save at least small amount of money in their savings accounts to use that during hardships. ASA started providing Technical Assistance (TA) internationally, enhancing capability of other interested international organizations to replicate ASA's cost-effective and sustainable microfinance model to help assist the poor in their respective countries.

Flood is a common natural calamity in Bangladesh that damages lives and livelihoods on a large scale almost every year. Considering this frequent flood an interest free rehabilitation loan was launched to assist the victims to overcome such crisis.

Small Business Loan and Voluntary Savings were introduced.

Foundation Phase (1978-1984)• Awareness building of the poor

for enabling them to perform the necessary social function.

• Legal program to fight against injustice and ensure access to land.

• Training for the members and the rural journalists.

Reformative Phase (1985-1991) • Women empowerment through

the improvement of health, nutrition, education, sanitation and credit.

• Post-disaster management program.

• Mini-irrigation program.

Program Specialization Phase (1992- to date)• Microfinance (credit and

savings program): From time to time expansion, quality improvement in credit delivery systems, modification, etc. are being adopted to meet demand of the valued customers at home and abroad.

1992 1993 1994 1995 1996 1997 2001


Small Entrepreneur Lending (SEL) was introduced for the small entrepreneurs. A product named Hardcore Poor Loan was introduced for the poor who were not able to receive small loan. Mini Life Insurance (Female) was introduced to provide the poor with insurance coverage to meet emergencies due to any sudden death within a loan cycle.

Small Loan (Male) was introduced to help the male members of clients to run different projects. Monga (Lack of Employment) Loan was also introduced in Monga affected areas. Short Term Loan Program was arranged for clients' urgent needs. Long Term Savings (LTS) was introduced to support clients during hardships.

Agribusiness Loan was introduced to promote all kinds of agro-related businesses and assist the small farmers in their cultivation.

Education Loan was introduced for the members' children who study in different educational institutions at various class/grade/levels. Business Development Service loan was introduced to rehabilitate/reorganize the income generating activities of the members affected due to unexpected situations/damages caused by flood, fire, theft, etc. Mini Life Insurance (Male) was introduced to cover the incidence of death of the husband/guardians of the clients.

Information Technology Loan was introduced to help the clients facilitating their access to the modern technology supply markets and make their participation in commercial uses of the technology.

ASA introduced Remittance Service under Western Money Transfer Program.

Small Entrepreneur Lending (SEL) was introduced for the small entrepreneurs. A product named Hardcore Poor Loan was introduced for the poor who were not able to receive small loan. Mini Life Insurance (Female) was introduced to provide the poor with insurance coverage to meet emergencies due to any sudden death within a loan cycle.

Small Loan (Male) was introduced to help the male members of clients to run different projects. Monga (Lack of Employment) Loan was also introduced in Monga affected areas. Short Term Loan Program was arranged for clients' urgent needs. Long Term Savings (LTS) was introduced to support clients during hardships.

Agribusiness Loan was introduced to promote all kinds of agro-related businesses and assist the small farmers in their cultivation.

Solar Power Program was launched to extend solar energy as an alternative source of fossil energy.

Assistance for otherNGO/MFIs

Providing Fund for PartnerNGOs/MFIs

Channeling Fund/Soft Loanfor other NGOs/MFIs

1995

2001

AssociatedOrganizations

ASA University Bangladesh(ASAUB)

Hope for the Poorest (HP)

ASA - MATS

2006

2010

2013

OTHERSASA Staff and Family Welfare Fund

ASA Insurance for Staff

Medical Assistance grant for member's treatment.

2003

2005

Primary Education Strengthening Program was introduced to provide tuition support to the students of poor households in coping study for reducing dropout.

Health Awareness Program was initiated to create awareness among the ASA group members on cleanliness and pursuing healthy habits in daily life.

Physiotherapy Program was commenced to provide treatment for preventing perennial sufferings of the poor and the underprivileged.

2003 2004 2005 2006 2007 2008 2009 2011 2012


Provider of TA Internationally.

Selected as International Service Provider (ITSP) by UNDP.

Acknowledged to attain Financial Self-Sufficiency (FSS).

Selected as the Best TA Provider Globally (by UNDP).

Achievements &Recognitions

1993 1994 1998 2002


ASA provided technical, managerial and consultancy services to establish ASAI HC based in Mauritius and its subsidiaries in India, Pakistan, Philippines, Sri Lanka, Cambodia, Ghana and Nigeria. ASAI HC reached 700,000 clients strength within a few years.

ASA has been selected as one of the five finalists MFI by the FONDAZIONE GIORDANO DELL'AMORE, Italy.

ASA has been placed in all the six categories with exceptionally best results in the MIX report titled "2005 MIX Global 100: MFI League Table" presented in the MCS 2006, Canada.

ASA has been awarded with the "Banking at the Bottom of the Pyramid" by the Financial Times, London, UK and International Finance Corporation (IFC) jointly.

Global Magazine of Switzerland chose ASA as one of the 100 top NGOs of the world.

Selected as the top MFI of the world by the Forbes magazine, USA.

2004 2005 2007 2008 2011 2012

MANAGEMENT TEAM

PRESIDENT

Md. Shafiqual Haque Choudhury

SENIOR DEPUTY PRESIDENT

M Abdul Aziz

EXECUTIVE VICE PRESIDENTS

Mr. Sushil Roy (HR)

Mr. Ranesh Acharjee, FCA (Accounts)

Md. Fayzer Rahman (Operation)

M A Halim Khan (Operation)

DIRECTORS

Md. Taufiqul Islam Chowdhury (Accounts, Finance & MIS)

Sheikh Mozahar Uddin (HR)

Gulam Mustafa (Legal Affairs)


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Serving the underprivilegedis the motto ASA’s non-financial programs made a remarkable progress of delivery services in 2013-14. The outreach of Primary Education Strengthening Program (PESP), Health Awareness Program (HAP), Integrated Health and Education Program, Physiotherapy Program was extended to cover more and more localities inhabited by the poor and the

underprivileged with required services. The number of beneficiaries of these services increased considerably to five million during this year. The cost of operation of these programs was borne by the ASA from its own fund.

NON-FINANCIAL PROGRAMS

Non-Financial Programs from Own Resource


Enlightenment leads topoverty alleviation

Primary Education Strengthening Program

Illiteracy and poverty go hand in hand. So education is considered a prerequisite for poverty alleviation. Education also brings equity in society. ASA works for poverty reduction, simultaneously envisioning a society with equal opportunity for all. Keeping all this in view ASA embarked on helping to educate the children of poor households. With a view to extending support to them so that they can also be imparted unhindered education as those of the privileged households, ASA came up with its Primary Education Strengthening Program (PESP). This program has been helping the poor students to cope with their usual learning difficulties and continue study that has resulted in checking dropout at primary school level to a significant extent.

Under this program, supplementary tuition is provided to children of marginalized families studying at pre-primary, grade 1, and grade 2 levels.

This is very useful to those students because their parents are usually not as educated as to help their wards in preparing home task and lesson.

Each PESP learning centre has a mentor who conducts a two-hour class at a convenient time six days a week. During 2013-14 PESP supported 120 thousand underprivileged students through 2400 learning centres. Next year 180 thousand underprivileged students will be brought under this program by opening 7200 additional learning centres across the country. ASA has a plan to further extend the PESP bringing in more students and thereby facilitating education for the poor.



Preventing perennialsuffering

Physiotherapy Program

A considerable number of people in the country lose their workability in part or full before reaching middle age and suffer for the rest of their lives due to such ailments as spondylosis and arthritis, debilitating pain in the neck, back, waist, knee etc. Reasons can be attributed to lack or initial awareness, lack of balanced food intake and malnutrition, excessive physical labor etc. Proper treatment for such diseases is physi-otherapy. But as physiotherapy treat-ment facilities are inadequate and costly in the country, the poor are gener-ally unable to afford that. Consequen-tially they often fall victim of permanent ailment and become a burden to their families and just cannot get out of the poverty trap.

Considering this plight of low income people, ASA initiated physiotherapy

program to provide necessary service at the poor patients' doorsteps by arranging physiotherapy camps across the country on regular basis.

During July 2013 - June 2014 period 11,088 patients

including 8,064 women were provided with physiotherapy

treatment in different backward areas of the country. Treatment of diseases in these camps also

included arthritis and rheumatoid arthritis, spondylolis and pains,

etc.


Good health is the sourceof all happiness

Health Awareness Program

In our country the poor and the vulner-able are often sufferers of repeated ailment and ill-health. This is a serious hindrance to their workability. Lack of knowledge and information prevent people belonging to poor and illiterate households from taking proper measures against even common diseases. This seriously hampers their lives and liveli-hood as well as earning. Recurring illness pushes them to fall victim of continuous ill-health. This health problem of the poor is a major challenge to poverty allevia-tion. Poor workability and continuation of poverty simply prevent the incumbent from achieving self-reliance.

The public health status of the majority in the country as stated above remains a matter of concern. ASA with a pledge for making poverty-free society pursues a consciousness raising program to reduce health hazard and maintain sound health among its clients predomi-nantly bracketed in low income and

uneducated segment of the society. ASA's Health Awareness Program adopts measures to provide them basic knowledge about general and commu-nicable diseases, making and keeping households aware of nutrition and nutri-tious food, maintaining personal hygiene, taking proper care of preg-nant mother and kids, etc.

The program provided necessary services to its

five million members motivating them with

essential health awareness enhancing

measures towards maintaining sound

health.


The Health-welfare Program of ASA has been offering financial assistance to the ailing members, staff and their families to bear the treatment expenses of the diseases they are suffering from. Treatment costs are comparably high in accordance with the earning of the poor and the lower middle class of the country. In consequence, a large number of people either are compelled to remain out of medical service or get inadequate treatment facilities that resulted in physical disability and even premature death to them. This is a big socio-economic problem of the country in its march to reduce poverty and to attain economic development as well. Under the reality, ASA initiated the program to provide financial assistance to its clients, staff and their family members to meet treatment costs. Through the program Tk 25,147, 051 has been offered as grant to the ailling members during 2013-2014 fiscal year.

HEALTH-WELFARE

PROGRAM

Tk. 25,147,051Provided as Health Assistanceto the clients


HEALTHSimple

Innovative

DecentralizedEducation

GRANTS-FREE

People-oriented

Forward-looking

Least-hirearchicalDevelopment

Philanthropic RemittanceAgribusiness

Cost-efficient

Transparent

Self-explanatory

ParticipatorySanitation

Hygiene

Microfinance

Sustainable

ASAWater


ASA has initiated Water and Sanitation Program to develop sanitation facilities and improve access to pure drinking water to the people of lower segment of the society. The program went in operation in March of 2014. This program aims at supporting the low income and poor people in installing sanitary toilets in their houses and extending facilities of pure water to the people living in the areas suffering from water scarcity.The program focuses on the under-mentioned objectives;A) Innovate befitting toilet

technologies and solutions for the poor households and train up the sanitary entrepreneurs, traders and field workers to improve their skill.

B) Provide loan with flexible terms and with less

interest to the sanitary entrepreneurs and traders.

C) Offer soft loan to the poor and low income people so that they can purchase sanitary toilets.

D) Change the mode of sanitation business as a social business.

Under the program 150 sanitary entrepreneurs and traders of six districts of the country were trained in last quarter of 2013-14 fiscal year. Besides, an amount of Tk. 24 lacs loan was disbursed among 52 entrepreneurs, traders and users during the aforesaid period as well.

The Water and Sanitation Program has provided an allocation of Tk. 1.85 crore for developing expertise of the stakeholders and the target people by conducting necessary training, workshops and exposure visits. It has set a target of disbursing loan amounting to Tk. 4.6 crore and make the people aware through various programs and events portraying the importance of sanitation for maintaining healthy life of the common people in the coming year.

Water and Sanitation Program

New InitiativesOf 2013-2014


In March 2014, ASA started Integrating Health and Education Program on pilot basis with a mission to improve health condition of the poor people by offering medical service for preventing general and communicable diseases and raising health awareness. Besides, the program gives opportunities for patients to identify various physical problems through check up facilities including blood pressure and blood sugar test, measuring body temperature and monitoring growth of children etc. Up to June 2014, Integrated Health and Education Program extended its outreach to 40 ASA- branches within the jurisdiction of 21 districts of the country. Six Sastha-Sikkha Sebikas (Health-Education Assistant) have been assigned in each branch to

render service to the targeted population. Sastha-Sikkha Sebikas provide health services in group meetings that generally take place in the yard of ASA borrowers. Local residents even not being ASA clients are also served with equal attention and care.

Integrated Health and EducationProgram


Highlights:107,000 patientsEnjoyed MEDICAL FACILITIES during M A R C H - J U N E quarter of 2014 from Integrated Health and Education Program of ASA


To widen primary healthcare facilities to the remotest and backward areas of the country where state owned and other public or private health services are inadequate or not functioning somehow, ASA launched Extended Health Program since July 2013 in those regions.

Under the program, 17 Primary Health Centers in 11 districts were established in 2013-14 with facilities of doctor, medical assistants, paramedics, volunteers and essential medicines at subsidized rate. At present, these Health Centers are catering primary healthcare services to the patients in full swing. Besides, health checking facilities including pregnancy test, blood sugar test are also being provided under the program to benefit patients with due importance and care.

Extended Health Program


Highlights:

29,000patients during2013-14.

Extended Health Program hassuccessfully rendered primaryhealthcare services to


Training is an important component of ASA microfinance program. The organization arranges training sessions for its different levels of staff regularly.


Research section of ASA is responsible for carrying out action-oriented surveys and studies on issues that are exclusively connected with the programs under implementation in the organization. The purpose of the studies is to identify weakness of those programs and services and to suggest recommendations for correcting and improving them. These studies are basically directed towards finding ways and means so that ongoing programs could deliver expected level of quality service to the targeted population. Under the direct supervision of this section, the following research works were conducted during the 2013-14 period:

A) Reasons for increasing overdue in Special Loan product;B) Causes of dropout in ASA microfinance program;C) Reasons for increasing absconding borrowers and remedies; D) Challenges, threats, strategies and approaches on risk management for smallholder farmers and communities: The ASA experience.

A number of documents including research reports, booklets, books and newsletters were published during 2013-14. Some were regular publications i.e. Annual Report, Half-yearly report, Newsletters etc. and others were based on research. The research documents were prepared on the outcome and results of the action-oriented researches and studies. A list of some of these documents is presented in the following page.

Research andDocumentation


Year ending report Short report on ASA activities

This book focuses on the problems of small-holder farmers of Bangladesh.

Bangla version of “A microcredit crisis averted: The case of Bangladesh.

Newsletter in bangla language. Newsletter in english language.

InternshipExposure andThe organization welcomed 35 guests from different countries across the world as exposure visitors during the year 2013-14. The visitors called on senior level central officials, had meetings with field officials and clients of ASA as well. The visitors paid visit to the projects to gather firsthand knowledge about income generating activities of ASA borrowers. These visits enabled them to learn about the implications of micro loan provided by ASA and livelihoods of the poor people of Bangladesh. The visitors expressed their thankfulness to ASA for its works directed towards the underprivileged of the country and its efforts meant for bringing socio-economic changes in their lives.


A student from the University of Puget Sound, California, USA completed her internship on ASA microfinance program during the summer 2014.

A 15-member chinese delegation from CFPA Microfinance, China called on ASA President during its visit at ASA.



TECHNICAL ASSISTANCE (TA) ServicesTechnical Assistance (TA) Services of ASA have been in operation for over two decades in the international arena. The service was started 1993 in Cambodia hired by HEKS. Since then TA service of ASA delivered in 30 countries where many NGOs and MFIs adopted ASA methodology in their microfi-nance operation as a tool for poverty alleviation effort.

ASA model attracted attention of so many countries and organi-zations from around the world for its efficiency and sustainability in managing microfinance opera-tion in quickest possible time. For instance, a branch can reach to profitability in 9 to 12 months if it follows ASA method properly. The secret of success of the model lies in its very simple and lean structure and administrative pattern which can serve at minimum cost. The organization

has been following this approach in its administrative tiers from central office to branch level. Besides, ASA always gives highest priority in reforming the program in response to the time and needs and never hesitates to take quick decisions at any situation. These features turn ASA to transform itself as the most efficient microfinance model of the world.

ASA International Holding Company, registered in Mauritius is a for-profit company owned by Dutch, British and the US investors. ASA is managing the operation, accounts, finance and training thereby scale up its outreach by deploying Bangladeshi experts with payments from the company through an agreed MoU.

ASA TA service is being implemented in managing micro-finance globally through development of skill manpower, automated system, training and providing accounts and audit related services through ASA International, a Mauritius based organization.

The TA services and international management efforts have been undertaken in a number of coun-tries including India, Pakistan, Sri Lanka, Cambodia, the Philippines, Myanmar, Ghana, Nigeria, Uganda, Kenya and Tanzania. At present, 79 skilled staff of ASA are staying to these countries for implementing micro-finance program and providing services to 6,85,121 poor people in their poverty alleviation ventures.

Managing Microfinance Program Internationally

PHILIPPINESContinent: ASIA

Population: 100 million Programme: Microfinance Program

NIGERIAContinent: AFRICA


MYANMARContinent: ASIA



GHANAContinent: AFRICA


INDIAContinent: ASIA

Population: 1,210 million Programme: Microfinance Program

KENYAContinent: AFRICAPopulation: 44 million

Programme: Microfinance Program

PAKISTANContinent: ASIA


SRI LANKAContinent: ASIA


TANZANIAContinent: AFIRCA

Population: 444.9 million Programme: Microfinance Program

UGANDAContinent: AFRICA

Population: 35.8 million Programme: Microfinance Program

CAMBODIAContinent: ASIA


Hygiene Promotion ActivitiesUnder the project hygiene promotion activities are being conducted at community level. A number of 1800 women, 270 adolescent girls and 600 children were given hygiene education through 98 organized sessions. Besides, a number of 1080 students of primary and secondary level were apprised on importance of hygiene through school WaSH club during the period.

ASSOCIATEDORGANIZATIONS

Hope for the Poorest (HP)(A Sister Concern of ASA)With a motto for caring the uncared Hope for the Poorest (HP), a sister concern of ASA has been working since 2010 to provide some necessary services on health, hygiene and sanitation to the poor people living in the natural disaster prone, isolated, underdeveloped and economically disadvantaged areas of Bangladesh. The organization deals with the following programs and projects at present.

Some of the important activities and services that HP has extended to the underprivileged during the period of June 2013 to July 16, 2014 are portrayed here.

Primary HealthCare Services (PHCS)

Water, Sanitation andHygiene (WaSH)

Capacity Building andMarketing Support toSmall Scale SanitationEntrepreneurs (CBMS)

SANTE Project

Primary Health Care ServicesUnder the program 24,827 patients of 10 districts were provided different healthcare services through its 10 Primary Health Clinics. The centers have been providing basic health care services like antenatal care (ANC), postnatal care (PNC) and limited curative care. Besides, few diagnostic tests like diabetic and pregnancy tests are also performed and necessary medicines are also being sold at a subsidized price (10% lower than the market price).

Clinic No.

Ante natalCare

Child Care Service

General Patient

Diabetic Test Nebulization

10 4044 5717 11823 3155 88 24,827

Water, Sanitation and Hygiene (WaSH)HP has been implementing WaSH project in the slum areas of Bagerhat and Sathkhira Municipalities. This 5- year duration project (2011-2015) has a target to improve water facilities and sanitation condition for 50 thousand slum dwellers of the two coastal towns.Hygiene Promotion session

TotalServiceRecipients


Health and Hygiene Promotion SessionHP conducted 1000 awareness raising sessions on health and hygiene which involved 15,000 people of the locality. Besides health and hygiene issues, these gatherings conveyed messages regarding reproductive health and menstrual hygiene management to the participants.

Sanitation Entrepreneurship Development ProjectHP is implementing “Steps for Sustainable Sanitation Services (4S) project to create demand for improved hygienic latrine among the poor households as well as to develop capacity of the small scale sanitation entrepreneurs and innovate befitting sanitary toilets and technology. For implementing the aforesaid mission of HP, a wide range of activities has been taken under the project. These are: Basic training for the sanitation entrepreneurs, Follow up training for the sanitation entrepreneurs and Exposure visits, Marketing support, Loan disbursement, etc.

Moreover, HP marked the year 2013-14 by arranging and observing a range of programs and activities in different places of the country to demonstrate and uphold the importance of sanitation, hygiene and safe drinking water for a sound health and better life.

ASSOCIATEDORGANIZATIONS

Kishori (Adolocent girl) Show RoomUnder the Hygiene Program two sanitary napkin production and promotion centers named “Kishori’ have been serving in the project areas. Kishori produces and sells 6000 packets of low cost sanitary napkins during the 2013-14 fiscal year.

Eye Care CampTwo eye camps were organized at ASA Narapoti Health Complex in Chunarughat Upazila of Habigonj District and at HP Aruail Health Center in Sarail Upazila of Brahmanbaria District with HP initiatives during the year 2013-14. More than four thousand eye patients attended these two camps. Among them 800 patients had been provided operational services and the rest were provided with eye-glasses and other necessary treatments.

Eye Care Camp

Kishori Show Room



ASA Medical Assistant Training School (ASA-MATS) established by ASA at Noman Nagar, South Narapati, Chunarughat, under Habigonj district, (150 kilometer away from Dhaka) started its function since January 2014 with an aim to develop quality manpower that will play a vital role in providing healthcare services to the underprivileged segment of the country. The formal inauguration of ASA-MATS took place in March of 2014, where students and their guardians, government officials and local people were present. Senior Deputy President of ASA M Abdul Aziz inaugurated ASA-MATS ceremonially.

Before starting academic activity the institute got approval from the Ministry of Health and Family Welfare of Bangladesh Government (MOHFW) and also obtained recognition from State Medical Faculty of Bangladesh (SMF). The procedure of admission and other academic activities of ASA-MATS are being carried out as per rules and regulations of the country. In its very first batch, 39 students from different parts of the country got admitted. Foreign students can also be enrolled in the institution with proper permission and approval of the proper authorities.

ASA Medical Assistant Training School


Authority of developing course curriculum, evaluation of teaching methodology, conducting examinations and awarding certificates are matters exclusively under the overall charge of the State Medical Faculty (SMF), Bangladesh. The curriculum of ASA-MATS has been structured to maximize learning opportunities of health problems faced by the people from both rural and urban areas. This includes extensive field-based instructions accompanied by interactive classroom based work in teams. Faculty members of the institute are highly professional and experienced in relevant field with brilliant academic and research records. The institute is using latest medical technologies and equipments in its teaching-learning process. Besides, students of the institution have adequate opportunities to participate in extracurricular activities.

ASA University Bangladesh (ASAUB)Centre for Academic Excellence


ASA University Bangladesh (ASAUB)Centre for Academic Excellence

The journey of ASA University Bangladesh (ASAUB) began in October 23, 2006 with a mandate of upliftment for academic activities and various social commitments for the national development as well. The founder and President of ASA, Mr. Shafiqual Haque Choudhury, who was also the former Advisor to the Caretaker Government, established the private university with a view to provide quality education at an affordable cost for the middle class and underprivileged. Professor Dr. Dalem Ch. Barman, who was the founder Chairman of Department of Peace and Conflict Studies of the University of Dhaka is now the Vice Chancellor. Under his able leadership and skill, ASAUB has been working towards fulfillment of its objective.

The vision of ASA University Bangladesh is to provide opportunity to higher education enabling students to enhance knowledge and skills necessary to achieve their professional goals, improve the productivity of their organization, and provide leadership and service to their communities.


ASAUB offers a wide range of co-curricular activities and events such as seminars, work-shops, symposium and socio-cultural activities that include public speaking, debate competition, drama and music celebration. One such celebrated program was ICC T -20 world cup theme song flash mob. ASAUB also celebrated the birth anniversaries of poets Rabindranath Tagore and Kazi Nazrul Islam. ASAUB Clubs contributed to social activities such as making documentary film on street-urchin garbage collectors, donating blood, distributing clothes to the poor and observing World Environment Day.

ASAUB has included in the list of offered degrees adding Bachelor of Pharmacy, BSS in Applied Sociology and Masters in Public Health. There are plans to expand the Faculty of Science and Engineering by the addition of B.Sc. in Electrical & Electronics Engineering, B.Sc. in Electrical & Telecommunication Engineering and Computer Science Engineering degrees. Other addition of new degrees includes MDS & MSS in Applied Sociology, BSS and MSS in Journalism and Mass Communication under the Faculty of Arts and Social Science.

At the beginning of new millennium, ASA University Bangladesh has been striving its level best for getting adjusted with ever-changing socio-economic environment. Advanced technology and learning experience are its priorities so as to make all the graduates prepared to meet requirements of the competitive job market. With a view to impart the best possible education at the tertiary level, ASA University Bangladesh focused on innovate teaching. ASAUB is always ready to meet the challenges not only for ongoing generation, but also emphasizes the future leadership generation.


ASAUB successfully orchestrated the following programsand activities during the first half of 2014:

ASA University Bangladesh is playing its role not just exploring the resource management but also contemplating on how best it can involve its students in the nation building activities to the highest extent.

Seminar on “Food Adulteration and its Prevention” in June 2014, organized by Pharmacy Department, ASAUB.

The Journey of On-line Writing Club Bangladesh in March 2014.

Workshop on “Improving English Language Skill” in April 2014.

Seminar on “The International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade” in March 2014 jointly organized by United Nations Information Centre and ASAUB.

Discussion on Bangabandhu Shiekh Mujibur Rahman in March 2014.

Fresher Reception Program in March 2014.

International Mother Language Day in 21 February, 2014.

Workshop on “Outsourcing“ in February 2014, jointly organized by GATCO Digital Limited and ASAUB.

Premiered a documentary film on “Life behind Garbage” - on the life of garbage collectors, in April 2014.

Workshop on English Language skill development through blogging jointly organized by ASAUB and Outline Writing Club Bangladesh in April 2014.

Discussion on “Awareness program on women’s right” to mark Women’s Day on 8th MarchFood and cloth distribution program among the orphans organized by Students of MBA program of ASAUB in May 2014.

Seminar on Solid Waste Management jointly organized by Swiss construct- South Asian Regional Office and ASAUB in June 2014.

Scientific Seminar on “Breast Feeding Practice of Mother having children under two years old” in 30 May 2014, organized by Public Health Department, ASAUB.

ASAUB Present StatusThe university admits students at three different starting dates in a year providing students wonderful opportunity to join a suitable program at their convenience. At present, the university offers the following programs under four Faculties:

Faculty of Business Administration -BBA, MBA (Regular & Executive)

Faculty of Science & Engineering- B. Pharm, M.PH Faculty of Arts, Social Science- BA (Hons) in English, MA in English(1yr & 2 yrs), BSS in Applied Sociology. Faculty of Law –LLB (Hons), LLM Total 4,020 students are studying at ASAUB in different programs.

Total number of full-time faculty members : 70. Total number of officers : 60.Total number of supporting staff: 29.


Events Of 2013-2014

ASA President is handing over Laptop computers to the district level officials.

ASA President is addressing in a DM coordination meeting.

EVENTS

Distribution of warm clothes among the poor and disadvantaged.


Events Of 2013-2014

ASA President inaugurates rally of International Women’s Day 2014.

Women employees of ASA took part in a rally that was arranged

for observing International Women’s Day 2014.

ASA President feeds a kid Polio capsule as a part of National Polio Feeding Program.

EVENTS


Sl.# DESCRIPTION / COVERAGE

1 Total Number of Branch Offices 2,9312 Total Number of Villages 63,8373 Total Number of Upazila / Thana 5114 Total Number of Districts (All Districts in Bangladesh) 645 Total Number of Active Groups

(Function as a collection center) - Primary 224,219

6 Total Number of Active Members : Primary 97.04% 4,880,749

(end of the month) : Special 2.96% 148,644

: Sanitation 0.00% 20 5,029,413

7 Number of Longterm Savings A/C ( 82.24 % of active borrowers) 3,655,0068 Total Number of Capital Buildup Savings A/C 4,990,272

9 Savings (end balance in Taka) : Primary 39.86% 11,310,930,586

: Special 6.63% 1,881,403,724

: Sanitation 0.00% 63,552

: LTS 37.57% 10,660,934,943

: CBS 15.94% 4,524,793,189 28,378,125,99410 Total Number of Active Borrowers : Primary 97.05% 4,313,199

(end of the month) : Special 2.95% 130,989: Sanitation 0.00% 15

: Solar 0.01% 258 4,444,461

11 Loan Outstanding (with service charge) : Taka 65,120,689,025

Disbursed (cumulative) Taka 854,452,742,358

Realized (cumulative) Taka 789,332,053,333

12 Loan Outstanding (Principal in Taka) : 59,290,107,761

13 Rate of Recovery (cumulative) 99.63%

14 Number of Full-time Staff : 20,29415 Number of Part-time Staff : 4,66516 Total Number of Staff : 24,959


NATIONAL COVERAGE

DHAKA

Bandarban

Khagrachhari

Bagerhat

Sathkhira Khulna

Pirojpur

Barishal

Jessore

Chuadanga

Jhinaidaha

Magura

Meherpur

Faridpur

Manikgonj

Munshigonj

Narayanganj

Brammanbaria

NarshingdhiPabna

Rajbari

Kustia

Rajshahi

C Nawabgonj

Naogaon

Natore

Sirajgonj

Jaypurhaat

Gaibandha

Panchagarh

Thakurgaon

Lalmonirhaat

DinajpurNilphamari

Kurigraam

Rangpur

Bogura

Jamalpur

Tangail

Gazipur

Maymanshing

Kishorgonj

Sheerpur

Netrokona Sunamgonj

Sylhet

Habiganj

Mouluvibazar

Narail

Gopalganj

MadaripurShariatpur

ChandpurComilla

Jhalakathi

Borguna

Patuakhali

Bhola

Feni

Noakhali

Chittagong

Rangamati

Cox’s Bazar

INDIA

NEPAL

INDIA

INDIA

MYANMAR

BAY OF BENGAL

Districts - 64Upazila/Thana - 511Branches - 2,931


Laxmipur

PROJECTION for 2014-2015Reaching 5.5 million people with financial services worth Tk. 12,000 crore (USD 1.5 billion)and Extending outreach of health, education, water and sanitation etc, under non-financial programs to more deserving localities and people across the country from own income, setting a glaring example of donation-free microfinance plus program in the world.


Service charges

Processing fees

Others

Banks interest

INCOME

Others costs

Financial costsLoan loss provision

Ofice expenses

Personnel expenses

EXPENDITURES

Bank loan

Members’ savings

Loan insurance

Retained earnings

SOURCESof

FUND

IncomeDuring FY 2013-14 the earning of the organization was Tk. 17,636.93 million. This income includes Tk.14,433.06 million from service charges, Tk. 2,565.08 million from banks interest, Tk. 70.93 million from loan processing fees and Tk.567.86 million, others sources such as proceeds of selling publications, used news papers and earning through consultancy services, etc.

ExpendituresThe total expenses of ASA during 2013-14 was Tk. 9,087.69 million, including personnel expenses Tk. 5,285.14 million, office expenses Tk.774.32 million, Tk. 2,141.12 million financial costs, Tk. 687.70 million loan loss provision and Tk. 199.41 million other costs. The net margin at the end of 2013-14 was Tk. 8,549.24 million.

Sources of FundAs an absulate donor-free organization ASA attained full financial self-depency since 2000. The total fund of ASA for operating microfinance services was approx Tk. 93,235.37 million at the end of 2013-14. This comprises of retained earnings (including reserve fund) Tk. 59,992.88 million, members’ savings Tk. 28,378.13 million, loan insurance Tk. 3,103.14 million and loan from Bank loan Tk. 1,761.67 million.

FINANCIALSTATEMENTS


Khan Wahab Shafique Rahman & Co.Chartered Accountants


AMOUNT (IN TAKA)30.06.2014 30.06.2013

Fixed Assets (At Cost Less Accumulated Depreciation) 3 495,981,298 484,311,358 Loan to ASA-Partner NGOs 4 56,548,493 59,775,421 Long-term Portion of Staff Housing Loan to Employees 7 50,027,554 63,412,485

Current Assets 93,998,811,793 79,195,694,804

Outstanding Loan 5 57,192,509,876 54,194,090,033

Loan Disbursed with Service Charge 854,452,742,358 736,956,519,485

Loan Recovered with Service Charge (789,332,053,333) (675,564,679,915)

Loan Outstanding with Service Charge 65,120,689,025 61,391,839,570

Less: Un-realized Service Charge 5.1 5,830,581,264 5,657,863,049 Principal Loan Outstanding 59,290,107,761 55,733,976,521 Less: Loan Loss Reserve 5.2 2,097,597,885 1,539,886,488

Loans, Advances and Prepayments 6 2,847,507,591 2,303,345,630 Current Portion of Staff Housing Loan to Employees 7 10,622,784 10,624,980 Advance Income Tax 8 28,470,142 11,036,268 Rent & Other Receivables 9 42,496,363 139,856,793 Other Current Assets 10 5,321,617 1,963,570 Investment in Fixed Deposits Receipts (FDR) 11 30,774,156,132 18,673,764,054 Cash and Bank Balance 12 3,097,727,290 3,861,013,476

Total Properties & Assets 94,601,369,139 79,803,194,068

FUND AND LIABILITIES

Capital Fund 13 49,017,353,033 41,323,038,896 Reserves 14 10,975,529,038 9,123,705,138 Members' Insurance Fund (loan) 15 3,103,138,268 2,624,180,824

Long-term Liabilities 27,702,331,862 23,002,679,644

Members' Savings 16 26,959,219,694 22,277,025,020 Loan from CORDAID, Netherlands 18 - 1,280,881 Loan from ADB (Agri Business) 19 183,875,419 211,674,021

Employees' Benefits Fund 20 347,588,620 307,559,964

Employee's Security Deposits 21 211,648,129 205,139,759

Current Liabilities 3,803,016,938 3,729,589,567

Members' Savings 16 1,418,906,300 1,172,475,001 Loan from CORDAID, Netherlands 18 - 3,830,061 Loan from ADB (Agri Business) 19 377,798,607 418,071,668 Employees' Benefits Fund 20 18,294,138 16,187,367 Employee's Security Deposits 21 11,139,375 10,796,829 Current Account with Employees' Gratuity Fund 22 550,149,813 329,433,878 Current Account with Employees' Provident Fund 23 105,379,016 712,685,424 Earnest Money & Security Deposits 24 4,947,405 5,432,805 Provision for Expenses 25 35,086,463 2,842,756 Accounts Payables 26 81,315,820 57,833,777 Loan from Commercial Bank 27 1,200,000,000 1,000,000,000

Total Fund & Liabilities 94,601,369,139 79,803,194,068

The annexed notes form an integral part of the Consolidated Statement of Financial Position.

ASAConsolidated Statement of Financial Position

As on 30 June 2014

PROPERTIES & ASSETS Notes



AMOUNT (IN TAKA)2013-2014 2012-2013

INCOME

Gross Service Charge 28 14,433,058,620 13,963,250,016 Less: Financial Costs 29 2,141,122,537 1,826,722,162 Net Service Charges 12,291,936,082 12,136,527,854

Loan Processing Fee 70,925,975 66,978,446

Bank Interest 30 2,565,081,249 1,569,143,596 Other Operating Income 31 392,548,199 383,640,295

Technical Service Charge 32 24,033,941 47,883,106

Total Operating Income 15,344,525,446 14,204,173,297 Less:Operating Expenses 33 6,119,617,251 5,333,826,374

Net Operating Income Before Loan Loss Provision 9,224,908,195 8,870,346,923

Loan Loss Provision 5.2 687,701,545 619,575,385 Net Operating Income Before Appropriation 8,537,206,650 8,250,771,539

Add: Non-Operating Income 34 148,697,185 153,549,899 Add: Non-Operating Income from Social Projects 35 2,581,494 2,487,272

Less: Non-Operating Expenses 36 60,125,617 56,585,795

Less: Non-Operating Expenses of Social Projects 37 47,561,782 5,045,935

Net Income Before Provision for Income Tax 8,580,797,931 8,345,176,980

Provision for Income Tax 31,560,000 9,847,394

Net Income Before Appropriation 8,549,237,931 8,335,329,587

Appropriation:

Statutory Reserve Fund @10% on Net Income 854,923,793 833,532,959

Capital Fund 7,694,314,138 7,501,796,628 8,549,237,931 8,335,329,587

The annexed notes form an integral part of the Consolidated Statement of Comprehensive Income and Expenditure.

ASA

Consolidated Statement of Comprehensive Income and ExpenditureFor the year ended 30 June 2014

Notes



AMOUNT (IN TAKA)2013-2014 2012-2013

A. Cash Flow from Operating Activities

Excess of Income Over Expenditures (surplus) 8,549,237,931 8,335,329,587 Other Cash from Operating Activities & Items Not Involving Cash 38 1,626,181,294 (638,944,879) Loan to Partner NGOs (Net) 3,226,928 3,780,864

Loan Disbursements (102,639,747,000) (96,182,666,000) Loan Collections 98,953,625,612 95,196,508,851 Advance Income Tax (17,433,874) (20,383,662) Net Cash Flow from Operating Activities 6,475,090,891 6,693,624,761

B. Cash Flow from Investing Activities

Acquisition of Fixed Assets (71,828,598) (26,771,234) Investment in Fixed Deposits Receipts (12,100,392,078) (13,968,650,391)

Net Cash Flow from Investing Activities (12,172,220,675) (13,995,421,626)

C. Cash Flow from Financing Activities

Loan (Paid to)/Received from CORDAID (5,110,942) (10,156,092) Loan from ADB (Net) (68,071,663) 54,964,009

Loan from Commercial Bank (Net) 200,000,000 1,000,000,000 Savings Deposits (Net) 4,928,625,973 4,205,249,622 Members' Insurance Fund (Net) 478,957,444 550,804,328

Increase/(Decrease) in Other Funds 39 (600,557,214) 476,809,977 Net Cash Flow from Financing Activities 4,933,843,598 6,277,671,842

Net surplus/ (deficit) in Cash in Hand and at Bank (A+B+C) (763,286,186) (1,024,125,023) Cash and Bank Balance at the beginning of the year 3,861,013,476 4,885,138,499

Cash and Bank Balance at the end of the year 3,097,727,290 3,861,013,476

NotesNotes

The annexed notes form an integral part of the Consolidated Statement of Cash Flows.Component-wise Statement of Cash Flows is given in Annexure-C-1.

ASA

Consolidated Statement of Cash FlowsFor the year ended 30 June 2014


Particulars


AMOUNT (IN TAKA)2013-2014 2012-2013

Receipts

Opening Balance: 22,534,777,530 9,590,252,162

Cash in Hand 12 94,073,224 249,771,832

Cash at Bank 22,440,704,306 9,340,480,329 Deposit with SND & Other Accounts 12 3,766,940,251 4,635,366,667

Fixed Deposit Receipts 11 18,673,764,054 4,705,113,663

Loan Recovered: 113,386,684,232 109,159,758,867

Principal 5 98,953,625,612 95,196,508,851

Service Charges 27 14,433,058,620 13,963,250,016

Loan Refund from Partner NGOs 4 20,826,928 17,880,864

Loans, Advances and Prepayments Realized 6 3,951,412,199 3,334,526,201

Housing Loan Realized from Staff 7 14,799,326 15,527,078Stock of medicine 10.1 1,145,565 - Advance Rent 10.2 27,064,298 24,251,196

Members' Loan Insurance Fund 15 736,108,868 781,869,733

Members' Savings 16 18,508,993,228 15,631,556,283Other Liabilities 17 - 9,681,842Loan from ADB (Agri-Business) 19.1 & 19.2 350,000,000 300,000,000



Employee's Gratuity Fund 22 277,787,963 1,355,775

Employees' Provident Fund 23 491,434,186 574,108,831

Loan from Commercial Bank 24 500,000,000 1,500,000,000

Loan Processing Fee 70,925,975 66,978,446

Bank Interest 30 2,565,081,249 1,569,143,596

Rental Income 141,361,257 60,907,482

Service Charge 99,254,707 46,233,215

Accounts Payable 7,547,551,615 7,553,030,651

Security & Earnest Money 24 117,625 951,496

Receipts from ASA Technical Service 32 145,657,519 165,416,128

Receipts against Income of Social Projects 2,581,494 2,487,272

Other Receipts 392,569,813 387,864,991

171,815,203,726 150,842,741,959

Notes

ASA

Consolidated Statement of Receipts and Payments For the year ended 30 June 2014


Total

Continued....


Payments

Payment to ASA NGO Partnership Programs 4 17,600,000 14,100,000

Loan Disbursement (Principal) 5 102,639,747,000 96,182,666,000

Housing Loan Paid to Staff 7 1,412,199 2,387,723

Paid against payable for ATS 9.3 - 23,937,208

Stock of medicine 10.1 1,127,753 -

Advance Rent Payment 10.2 30,440,157 25,955,382

Members Insurance Fund (Loan) 15 257,151,424 231,065,405

Members' Savings 16 13,580,367,255 11,413,334,399Other Liabilities 17 - 22,654,104Loan Repayment to CORDAID, Netherlands 18 5,110,942 10,156,092Installment paid to Agri-Business Loan 19.1 & 19.2 418,071,663 245,035,991



Employee's Gratuity Fund 22 57,072,028 2,033,873,846

Employees' Provident Fund 13 1,098,740,594 97,962,560

Payment against Provision for Expenses 25 2,842,756 3,049,757

Installment Paid to Commercial Bank Loan 27 300,000,000 500,000,000

Operating Expenses: 6,112,999,476 5,327,144,495

Personnel 5,304,107,751 4,592,402,352Office Expenses 808,891,725 734,742,143

Fixed Assets Purchased 3 71,828,598 26,771,234

Financial Costs: 1,137,299,034 874,735,446Members Savings 967,602,556 718,943,668

Interest on Agri-Business Loan 43,804,683 43,573,517

Interest on Commercial Bank Loan 105,783,333 61,325,000

CORDAID Loan Fund 271,640 891,181

Employees' Security Deposit 2,442,890 4,412,214

Provident Fund Account 17,393,932 45,589,866

Loan & Advance 4,495,574,159 3,594,919,601Accounts Payable 7,523,891,680 7,521,303,634

Advance Income Tax 15,250,000 19,000,000Security & Earnest Money 24 603,025 3,185,436Paid against Expenses of Social Projects 47,561,782 5,095,131Payment for ASA Technical Service 32 121,623,578 117,533,022

Closing Balance: 33,871,883,421 22,534,777,530

Cash in Hand 12 80,924,691 94,073,224 Cash at Bank 33,790,958,730 22,440,704,306

Deposit with SND & Other Accounts 12 3,016,802,599 3,766,940,251Fixed Deposit Receipts 11 30,774,156,132 18,673,764,054

171,815,203,726 150,842,741,959

The annexed notes form an integral part of the Consolidated Statement of Receipts and Payments.

Component-wise Statement of Receipts and Payments is given in annexure-D-1.


Particulars NotesAMOUNT (IN TAKA)

2013-2014 2012-2013


2013-2014 2012-2013

Capital Fund

Balance as at 1st July 41,323,038,896 36,013,904,396

Prior Year's Adjustment 13.3 - 192,406,579

Addition Income over Expenditure During the Year 8,549,237,931 8,335,329,587

Transferred to Reserve Fund 13.2, 14.1.1 &

14.2 (854,923,793) (3,218,601,666)

Balance as at 30 June 49,017,353,033 41,323,038,896

Reserve Fund

Balance as at 1st July 4,591,448,767 1,318,587,862

Addition Income over Expenditure During the Year 854,923,793 833,532,959

Transferred from Capital Fund 13.2 - 2,439,327,947

Balance as at 30 June 5,446,372,560 4,591,448,767

Total Balance as at 30 June 54,463,725,593 45,914,487,663

ASA

Consolidated Statement of Changes in Fund

For the year ended 30 June 2014

AMOUNT (IN TAKA)Notes


Particulars


1. Corporate Information of the ASA:SL. No.

a. Name of the MFI

b. Year of establishment

c. Legal Entity (Registration No.)

d. Nature of operations (programs)

e. Statutory Audit Conducted up to

f. Name of statutory auditor for last year

g. Name of statutory auditor for current year

h.

i. Date of last AGM held

j.

Qualification Profession

1. Mrs. Tahrunnesa Abdullah, Chairman M.A.M.S, DPHSocial &

Development Specialist

2. M.A (Political Science)

Journalist

3. Mr. Matiur Rahman Chowdhury, Member MA Journalist

4. Alauddin Ahmed, Treasurer B.ComSocial &

Development Specialist

5. Mrs. Rabeya Akter Choudhury, MemberUnder

Graduate

Social & Development

Specialist

6. Prof. Dr. Dalem Ch. Barman, Member Ph.D Professor

7. Prof. Dr. Nurul Islam, Member Ph.D Professor

8.Class VIII

Small Entrepreneur (Group Member of

ASA)

MSS (Social Science)

Social & Development

Specialist

4 Meetings

21 June 2014

List of Executive Committee (Governing Body) Members

No. Executive committee (Governing Body) meeting held FY 2013-2014

ASANotes to the Consolidated Financial Statements

For the year ended 30 June 2014

ASA

1978-1979

Particulars

# Societies Registration Act, No # S-660/36 of 1978-1979 dated 17 May 1979# NGO Affairs Bureau No # 120 Dated 14 January 1982# MRA Registration No # 00470-00538-00100 Dated 15 January 2008

Micro-finance service including health and education

2013-14 (July-June)

Khan Wahab Shafique Rahman & Co

Khan Wahab Shafique Rahman & Co

Md. Shafiqual Haque Choudhury, Member Secretary

Shohani Bhila (2nd Floor), 20/7 Block-B, Babor Road, Mohammadpur, Dhaka

House# 13/7/KA, Shyamoli, Road No. 02, Mohammadpur, Dhaka.

Gias Uddin R/A, 63/1, 5th floor, Nilkhet, Dhaka

House# 13/7/KA, Shyamoli, Road No. 02, Mohammadpur, Dhaka.

Name & Designation

House #19, Road #16/4, Block #Dha, Pallabi, Mirpur, Dhaka-1216

Present Address

Flat # B-9, 119/1, Century Tower, Boro Mogbazar, Dhaka

Banglo- 3, Fuller Road, Dhaka University R/A., Dhaka

Mrs. Shirin Shanti, Member (Joined on 21 June 2014), replaced against serial No# 2

Mr. Mahbubul Alam, Member (Passed on 06 June 2014)

19/C, Dhanmondi, Road#01, Bell Tower (5th & 6th floor), Dhaka- 1205.

5/A Walso Tower21 Kazi Nazrul Islam Avenue, Dhaka.



2.00 Summary of Significant Accounting Policies:

2.01 Basis of preparation:

2.02

2.03 Cash Flow Statement:

2.04 Statements of Change in Fund:

2.05 Going Concern:

2.06 Use of Estimates and Judgments:

2.07 Fixed Assets and Depreciation:

a)

b)

c)

d)

Cash flow statements is prepared in accordance with BAS - 7 titled "Cash Flow Statements". Cash flowsfrom operating activities have been presented at "Indirect Method".

Statement of changes in fund is prepared principally in accordance with BAS-1 "Presentation of FinancialStatements".

Depreciation on fixed assets is charged using straight-line method at the rates varying from 2.5% to25% p.a. Half year's depreciation is charged on the during the period additions irrespective of thedate of acquisition.

Expenditure incurred for the purpose of Repair and Maintenance of Fixed Assets under each yearhas been charged as expense in the Financial Statements.

During the year ASA donated 23 decimals of land out of 47 decimals to its Sister Concern ASAMedical Assistant Training School (MATS). The land is originally a donated property which nominalcost Tk.1 has been shown in the accounts. So donation of half of the land is very insignificant matterwhich has not been reflected in the cost of land.

The financial statements have been prepared under the historical cost convention using accrual basis ofaccounting in accordance with the Bangladesh Accounting standards except for income from servicecharge, interest income on fixed deposits and interest payments on loans and borrowings which havebeen accounted for on cash basis. The statement of Financial position and statement of comprehensiveIncome and Expenditure have been prepared in accordance with BAS-1 ' Presentation of FinancialStatement'.

All fixed assets are stated at cost less accumulated depreciation as per BAS-16 ' property, plant andequipment.' The cost of acquisition of an assets comprise its purchase price and directly attributablecost of bring the assets to its working condition.

Up to Accounting year 30 June, 2013 there were three components of accounts namely ASA Tower,Central and Socio Economic Credit Program (SECP). To reduce the workload and better presentation ofaccounts during the accounting year ASA has merged Central & SECP making ASA Activities. So finally,ASA Tower and ASA Activities accounts have been complied to get overall picture of ASA named ASAConsolidated Financial Statements. The consolidated financial statements has been prepared from acommon reporting period of each individual unit ending 30th June,2014.

Basis of Consolidation:

The accompanying financial statements have been prepared on a going concern basis, whichcontemplates the realization of assets and the satisfaction of liabilities in the normal course of business .

The preparation of financial statements requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amount of assets,liabilities, income and expenses. Actual results may differ from these estimates.



2.08 Loan to Group Members:

Primary Loan:

Special Loan:

Sanitation Loan:

Solar Loan:

2.09 Loan Written Off:

2.10 Loan Loss Provision

Days of Rate of Amount of Amount ofArrears Provisions on outstanding Provision

outstanding (Taka) (Taka)Standard Current (no arrears) 1% 57,117,865,761 571,178,658 Watch list 1-30 5% 151,633,019 7,581,651 Sub-standard 31-180 25% 494,851,545 123,712,886 Doubtful 181-365 75% 522,530,984 391,898,238 Loss 365-above 100% 1,003,226,452 1,003,226,452

59,290,107,761 2,097,597,885

The organization is giving three types of loan to Group Members. These are Primary Loan, Special Loanand Solar Loan.

Loan considered bad/doubtful is written off half-yearly in June and December. The written off amount iscalculated on the basis of loans remaining overdue for one year plus its duration completed.

Sanitation loan is introduced in the financial year 2013-14. This loan is disbursed to SanitationEntrepreneur only who has taken training from ASA. Duration of this loan would be twelve months totwenty four months. And installment may be paid in weekly or monthly basis. Installment can be paid byborrower before it is due and get service charge exemption like primary loan or special loans.

Classification

Loan loss provision amounting to Tk.687,701,545 has been made during the year under audit.

Duration of primary loan would be three, six, twelve month, one & half years or two years andinstallment may be weekly or monthly basis. Loan limit is Tk. 8,000 - 70,000. Installment of primary loancan be paid by the borrower before it is due, but restricted by five No. of Installment for weekly paymentand one installment for monthly repayment of loan.

Duration of special loan would be one, one and half or two years. Installment type is weekly or monthly.Loan limit is Tk. 70,000 - 500,000.

Green Housing & Energy Ltd. is a partnership based organization of ASA which provide solar energy torural people. It uses AFTA & INES technology of Taiwan & French respectively. Mass people can use it asalternative of electricity.

As per MRA recommendation loan loss provision was required Tk.2,097,597,885 as on 30 June 2014calculation of which is as under. Amount had been already been provided upto last year i.e. 30 June2013 was Tk.1,539,886,488 and bad debt written off amount during the year is Tk.129,990,148. So thenet amount as calculated in note# 5.2 Tk.687,701,545 has been provided in the accounts.

Loan



2.11 Investment:

2.12 Cash and Cash Equivalents:

2.13

a) Borrowing from banks, financial institution and agents:

b) Deposits of members:

c) Provision for Taxation:

d) Provision for Liabilities:

2.14 Segregation of short and long term Liabilities:

Long-term CurrentPayable after Payable within

one year one year

Staff Security Deposits 95% 5%Group Members Savings 95% 5%Staff Service Benefits 95% 5%Staff Group Insurance Fund 95% 5%

Cash and Cash equivalents include notes and coins on hand, unrestricted balance held with Bank whichare subject to insignificant risk and time of changes in their fair value and are used by the ASAmanagement for its short-term commitments.

Borrowing from CORDAID,Netherland and ADB (Agri Business) includes interest bearing borrowing,which are brought to account at gross value of the outstanding as on June 30, 2014.

Deposits by members are recognized when contractual provision of the arrangements with themembers which is generally on trade date and measured at the consideration receipts.

Liabilities & Provisions and basis of their valuation:

Investments includes Fixed Deposits Receipt (FDR) with various banks. Its includes both short and longterm basis, interest earned on short- term FDR are being re-invested with principal amount i.e.compounded the principal amount of FDR for re-Investment. Interest received on FDR are onlyaccounted as income, no accrued interest on FDR for the fraction periods (opening date to year end) hasbeen considered as income. No accrued interest on the scheme has accounted in the FinancialStatements.

Liabilities

Loan from CORD AID, Netherlands

Loan from Citi N.A Bank & Standard Chartered Bank (Commercial loan)

Bank Schedule Bank Schedule

According to CORDAID Schedule

Liabilities have been segregated into long-term and current under following basis depending on thenature of the transaction of each particular item.

A provision is recognized in the balance sheet when the ASA has a legal or constructive obligation asresult of a past event and it is probable that an outflow of economic benefit will be required to settlethe obligations in accordance with the BAS 37 "Provisions, Contingent Liabilities and ContingentAssets".

Provision for current income tax has been made @ for individual assessee as prescribed in theFinance Act,2014 of the accounting profit made by the ASA after considering some of the add backsto income and disallowances of expenditure as per income tax laws in compliance with BAS-12 "Income Taxes".

Loan from ADB through EBL & BASIC Bank Ltd. (agree-business loan)

Bank Schedule Bank Schedule

Which are payable within next one

year



2.15 Employee benefits:

Provident Fund:

Gratuity fund:

2.16

Insurance fund:

House Building Loan:

Provident Fund Loan:

A permanent staff can get PF Loan according to the rules of ASA as the following basis:

Completion of Service: % of Total Contribution: Up to 1 year Nil From 1 year to 4 years Own Contribution From 4 year to 8 years 80% of Total Contribution Above 8 years 100% of Total Contribution

Gratuity Loan:

2.17 Revenue Recognition:

Service Charge Income on loan to Members:

Investment Income:

Fees and Commission Income:

Other employee benefits:

The ASA operates a gratuity scheme, provision in respect of which is made annually covering all itseligible employees. Gratuity fund benefits are given to the permanent staffs of the organization inaccordance with the locally registered Gratuity Fund Rules. The gratuity fund is recognized by NationalBoard of Revenue (NBR) in accordance with the section-4 under the First schedule of Part-C of IncomeTax Ordinance 1984. The recognization took effect from February 02, 2010. The fund is operated by aBoard of Trustees. The employees are entitled to receipt amount of gratuity according to their length ofservice that is 2 times of last basic for the service life above 20 years and 1.5 times upto 20 years ofservice life.

In terms of the provisions of policy of ASA service charge (Interest) income is recognized on cash basis.Interest on loans are being charged at the time of loan taken by the members. There after on realizationthe amount are transferred to income.

The ASA has a group insurance scheme to its confirmed employees and the benefits to the scheme isavailable to the family of the employee on the occurrence of natural death of the employee during thetenure of his/her service.

A permanent senior staffs can avail house building loan taking approval from president of ASA.

If any employee complete 10 years of service life he /she can get Gratuity Loan according to the rules of ASA.

Income on investment in FDR is recognized on cash basis.

Fees and Commission income arises on services provided by the ASA are recognized on a cash receipt

Provident fund benefits are given to the permanent staffs of the organization in accordance with thelocally registered Provident Fund Rules. The provident fund is recognized by National Board of Revenue(NBR) in accordance with the section 2(52) under the First Schedule of Part - B of Income Tax Ordinance1984.The fund is operated by a Board of Trustees. All confirmed employees of the ASA are contributing10% of their basic salary as subscription to the Fund. The ASA also contributes equal amount of theemployees contribution.



Rental Income:

Interest paid and other expenses:

Interest paid on deposits:

2.18 Currencies

Financial statements have been prepared in Bangladeshi Taka (BDT).

2.19 Grant/Donation Accounting

ASA has not received any amount of grant/donation during the year.

2.20 Information of loans

Details information of different types of loans have been presented below:

Terms of loan Tenor Interest RateRevolving Loan 5 years & 2 years 7%Revolving Loan 5 years & 2 years 7%

Term Loan 180 days 8.5%Term Loan 175 days 8%

2.21 Policies on Savings Collection

2.22 Post Balance Sheet Events:

2.23 Branch Audit of ASA:

The external audited 50 (fifty) branches during the year under audit.

2.24 General:

i. Figures appearing in the financial statements have been rounded off to the nearest Taka.

ii.

2.25 Other Compliance of MRA Rules:

As required by the Microcredit Regulatory Authority we further report that-

1)

2)

3)

Interest paid to member on long term savings deposits are recognized on accrual basis.

Particulars of LoanBasic Bank Ltd. (Agri-Business Loan)Eastern Bank Ltd. (Agri-Business Loan)Standard Chartered Bank (Commercial Loan)Citi NA Bank (Commercial Loan)

Financial statements have been drawn up in agreement with related books of account of theOrganization;

Rental income from house property is recognized during the year when it is become due.

In terms of the provisions of the BAS-1 "Presentation of Financial Statements" interest and otherexpenses are recognized on accrual basis.

Previous year’s figures have been rearranged, wherever considered necessary to confirm to currentyear’s presentation.

Nothing has happened between the end of the financial report and signing date of the financialstatements that could affect the values stated in the financial statements.

Borrowers are required to deposit Tk. 10 to 50 weekly and Tk. 50 to 250 monthly depending on thenature of the loan. Besides this, borrowers can deposit voluntarily savings at any amount weekly ormonthly.

ASA has duly accounted for the loans received from banks and grants from donors as peraccounting manual, principles and rules circulated by it;

ASA collects funds for the operation of microfinance as a whole and allocates among thecomponents as the management thinks fit, and prepared separate reports based on that;



4)

5)

6)

7)

8)

9)

10)

11)

12)

13)

SL# Types of LoansRate of Interest

1.00 Primary Loan 27%2.00 Special Loan 27%3.00 Solar Loan 27%3.00 Sanitation Loan 27%

14)

15)

16)

17)

18)

19)

We have physically counted the cash in hand and confirmed bank balances with the bankstatements on a test basis and also examined the bank accounts reconciliation statements andfound them satisfactory;

Provision for loan loss has been duly calculated and accounted for as per MRA’s policy;

During the course of our audit we have not find any activity which is relating to money laundering.

We have checked the vouchers on a test basis and found that payments were made upon approvalof appropriate authority;

ASA has properly used the fund collected from various sources for the purpose of microfinanceoperations and duly recorded the same in the books of accounts;

ASA has duly complied with its policies regarding group members savings (Deposit, Refund, Interestpaid on deposit and Interest Rate). The savings amount collected from group members are dulyrecorded and deposited into bank;

Branches of ASA has duly followed the procedures of loan disbursement, so far we have examined;

We have physically verified the existence of fixed assets and examined the purchase thereof on atest basis and found that these are duly presented in the financial statements;

ASA was not engaged in any activity that in contravention of the constitution of ASA and of anyprovision of law;

We met and interviewed some of the group members of each of fifty branches we audited andfound that they were using funds properly;

Payments exceeding Tk. 10,000 were made through bank account. Cash payment only made if thereceiver has no bank account;

From our test check it appears that the collected loan and saving amounts were duly deposited intobank on daily basis;

From our test check, we found the amounts collected from group members were duly accounted foras per applicable policy and procedure at member and group level;

The interest on funds collected from various sources is average 7%. On the other hand, theeffective rate of interest on loan to group members are shown below:

The financial statements reveal that cash and bank balances as on 30th June 2014 was Tk.3,097,727,290 available for the microfinance program and the said amount is being used for themicrofinance operations of the organization;

We have examined the transactions and agreement during the period on a test basis and did notfind any transaction occurred violating the provision of Microcredit Regulatory Authority Act, 2006,the interest of donor agency and the organization itself;



20)

21)

22)

23)

24)

25)

26)

27)

28) A schedule of fixed assets is presented in Annexure-A to the financial statements (Page#31).

The Organization has introduced and established policies for procurement, human resources, loanand saving and complies with the above polices for microfinance operations;

The Organization has a strong Internal Audit Department having 46 employees and they haveconducted internal audit in the organization at a regular interval in line with the guidelinesmentioned at Internal Audit Charter in the manual of ASA. Besides ASA has more than 413 RegionalManagers (RM) and other 100 Assistant District Managers who conduct audits of field offices onregular basis;

The Organization has drawn up its financial statements in conformity with International AccountingStandards (IAS) and International Financial Reporting Standards (IFRS) as adopted in Bangladesh(i.e. BAS & BFRS). It has also complied with other applicable rules, regulations, concepts andconventions.

We have checked the microfinance activities of ASA having funds from various sources including itsown and also reviewed the adequacy of MIS system, internal control system, adequacy ofclassification of loan, provisioning policy, adequacy of collection percentage of loan and found themsatisfactory;

We have examined the financial statements submitted to various donor organizations, regulatoryagencies and other authorities by ASA with proper justification and did not find any reportablecondition;

As per Sixth Schedule Part-A, Para 1A of the Income Tax Ordinance 1984 income frommicrofinance activities is tax exempted. ASA submits income tax return and deducts tax and VAT atsources as per the provision of Income Tax Ordinance 1984 and VAT Act 1991;

We have examined the third party loan agreements and no non-compliance has came to our notice;

We have examined the budgetary control system of the Organization and did not find any reportableconditions;



2.26 Ratio Analysis of ASA

30.06.2014 30.06.2013

Result Result

1. Loan Recovery Ratios

i. Cumulative Loan Collection Ratio on Total Dues (%) 99.54% 99.57%

ii. Loan Collection Ratio on Current Dues (%) 98.13% 98.58%

2. Liquidity Ratio (times) 23.97:1 20.62:1

3. Current Ratio (times) 24.72:1 21.23:1

4. Capital Adequacy Ratio (%) 51.81% 51.78%

5. Debt Service Coverage Ratio (times) 4.04:1 4.7:1

6. Debt to Capital Ratio (times) 0.61:1 0.61:1

7. Return on Capital Ratio (%) 18.93% 21.56%

The following ratios have been computed from the audited financial statements of ASA for the yearended 30 June 2014 and 2013:

Name of Ratios

We have examined the calculation of the above ratios of ASA for the years ended 30 June 2014and 2013 and found them correct. The detail calculation is presented in Annexure - P.



annual report 2013 14

Documents