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Table of Content

Vision, Mission, Values

Strategy

INNOVATION & IMPACT

Financial Inclusion Services

Agriculture, Livestock and Enterprise Development Services

Institutional Development Services

MANAGEMENT REPORTS AND FINANCIAL STATEMENTS

Bhartiya Samruddhi Investments and Consulting Services Ltd. (BASICS Ltd)

Bhartiya Samruddhi Finance Ltd. (BSFL)

Krishna Bhima Samruddhi Local Area Bank (KBSLAB)

BASIX SUB-K iTransactions Ltd. (BASIX SUB-K)

BASIX Krishi Samruddhi Ltd. (BASIX Krishi)

BASIX Academy for Building Lifelong Employability (B-ABLE)

Indian Grameen Services (IGS)

BASIX Consulting and Training Services Ltd. (BASIX Consulting)

CTRAN Consulting Ltd. (CTRAN)

Institute of Livelihood Research and Training (ILRT)

Livelihood BASIX Inc.,(LBI)

VAYAM Renewables Limited (VAYAM)

BASIX

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BASIX | Annual Report 2014 - 201532

Indian Gr‍ameen Ser‍vicesOur‍ Par‍tner‍s in Livelihood Pr‍omotion Boar‍d of Dir‍ector‍sChair‍manMr. Vijay Mahajan

Managing Dir‍ector‍Mr. Arijit Dutta

Independent Dir‍ector‍sDr Sudha Nair Prof Arvind Satyatma GuptaMr Hersh HaladkerMr Vijay Rajaram NadkarniMs Swati Bhargava Desai

Non-independent Dir‍ector‍sDr Sankar Datta

Auditor‍sM/s V Nagarajan & Co.,

Inter‍national Donor‍s RBS Foundation The Ford Foundation Rabobank Foundation Swiss Agency for Development Cooperation Developpment International Desjardins, Canada Solidaridad Network Asia Ltd.Shell FoundationWater for PeopleICCOA Kerk in ActieArc FinanceUnited Nations Childrens’ Fund

Indian Donor‍s Small Farmers Agribusiness Consortium Sir Ratan Tata Trust ITC LtdNational Bank for Agricultural and Rural Development Jamsetji Tata Trust Indian council of Agricultural ResearchJharkhand State Watershed MissionThe Integrated Tribal Development Agency

1. Project Highlights:In 2014 -15 Financial Year, IGS implemented 43 projects in 18 Indian States, to reach more than 15.2 lakhs households. Here are some highlights of IGS work in 2014, in various geographies of India.

IGS continued incubating the innovations across a broad range of pragmatic and technical areas, while improving organisation’s ability to share knowledge within the company and with the communities and other various stakeholders.

Resettlement & Rehabilitation of forest dependent households:States: Madhya Pradesh, Odisha; Funded by: RBS Foundation India;Amount: Rs. 512.00 lakhs.

This RBS FI funded project aims to increase / enhance forest dependent households’ incomes through a combination of natural resource management, crop diversification, including the reduction of biotic pressure on the forest resources. This project intensified household food security through improved agricultural practices for paddy, maize, vegetables, land & water management, poultry, which is practiced in 1000 acres of land. This project reached 0.10 lakhs most vulnerable tribal

and displace households with a special emphasis on their needs.

Community owned eco-tourism:State: Odisha; Funded by: RBS Foundation India; Amount: Rs. 40.37 lakhs.

The Manglajodi eco-tourism project aimed at promoting the community owned and managed eco-tourism initiative, create alternate livelihoods for the local community. During this year the Ecotourism Committee was further strengthened with appropriate marketing strategies required to promote ecotourism resulting in declaring Mangalajodi, as eco-destination in Dec’2014 by Govt. of Odisha.

Impact: Mangalodi witnessed a large no. of tourists visiting this destination resulting in increased revenue for the tourist spot. This is just a beginning of a long promising journey. This project has helped 0.0005 lakhs households to derive their livelihoods, including the conservation of bio-diversity.

Enhance of livelihoods of small & marginal farmers in agriculture and allied sector -State: West Bengal, Odisha, Jharkhand, Bihar, Madhya Pradesh

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(MP), Maharashtra, Telengana; Funded by: ITC, ACC, Jharkhand State Livelihood Promotion Society (JSLPS), Solidaridad, Inter Church Organisation for Development Cooperation, Sir Ratan Tata Trust, National bank for Agriculture & Rural Development; Amount: 1729.00 lakhs

With funding from various donors, IGS is working with 1.25 lakhs farmers, to increase the productivity of paddy, maize, wheat, vegetables crops and breed up gradation of livestock. The major focus was on productivity enhancement, risk mitigation and reduction in cost of cultivation through agriculture and livestock extension services, farmer’s field school, etc. The various programs run under this banner are -

1. Promotion of responsible soy supply chain in MP and Maharashtra

2. through Systems of Rice Intensification (SRI) in Jharkhand

..and in Allied SectorComprehensive livestock development in Hoshangabad, MP

Regular training and capacity building of dairy cattle rearers on improved livestock management practices, artificial insemination (AI) for breed up-gradation to enhance milk production and minor veterinary services by professionals at the farmers doorstep.

Impact: Through 25 Cattle Development Centers set up by IGGS and managed by para-veterinarians, AI to 16,000+ breed able cattle, vaccination of 11,500+ cattle, organizing infertility camps to treat 13,000+ cattle. The service fee received for AI services is Rs. 8.23 lakhs.

Integrated solid waste management:States: Madhya Pradesh, Bihar; Funded by: ITC, Various Municipal Committees, Housing Society; Amount: Rs. 35.00 lakhs.

The household waste is managed by door to door collection, segregation at source and recycling of bio-degradable and non-bio-degradable wastes by involving poorer sections of community, in urban areas. Organizing and training the waste collectors (the vulnerable segment) has made an environment friendly system a profitable proposition for rag pickers. Impact: Covered 0.64 lakhs households, improved waste management practices for over 20 municipal corporations.

Institutional development services:States: Maharshtra, Goa, Madhya Pradesh, Andhra Pradesh, Rajasthan, Bihar, Jharkhand, West Bengal, Sikkim, Tripura, Manipur, Meghalaya, Mizoram, Meghalaya; Funded by: Small Farmer Agribusiness Consortium (SFAC); Amount: Rs. 1070.00 lakhs.

This SFAC funded project aims to promote, handhold 110+ Farmer Producer Organisations (FPO). IGS is the Resource Institution for implementing the project.

• To promote organizations of farmers at identified cropspecific clusters;

• Strengthen their capacity through agricultural bestpractices for enhanced productivity;

• Facilitate linkages with input suppliers and extensionservice providers;

• Increase local value addition of feasible products incompetitive clusters, so that farmers can retain more of the surplus;

• Facilitate forward linkage - linking producer groups tomarketing opportunities by market aggregators.

Over 1.10 lakhs small & marginal farmers, benefitted improved access to better agricultural practices, better quality input availability, through the handholding support on promotion, nurturing of Farmer Producer Organisation.

Renewable energy:States: Bihar, Karnataka; Funded by: Arc Finance, Rural Spark, Shell foundation; Amount: Rs. 36 lakhs

To promote access to energy, branded solar products like solar home systems, battery charging solutions, micro grid solar generator for home lighting, solar irrigation, etc., has been introduced in several locations as a pilot program with funding support from Arc Finance, Rural Spark, Shell Foundation, etc.

Promoting these products was a challenging task because of the low acceptance levels, financial capacity to own one, very limited products to offer are a few among others. One of the ways to attack these challenges was to set up a focussed approach by the Urja Mitra (village level entrepreneurs), who would aggregate the demand and coordinate with the product company to help the rural communities to access green energy.

Inclusive financial services:Business Correspondent framework with various banks to provide access to financial services to small and upcoming NGO MFIs run by NGOs as well as community owned MFIs (CO-MFIs), through Livelihood & Micro Finance Promotion Fund (LAMP Fund), housed in IGS. 12.5 L people were added into the financial inclusion ambit who will now have access to savings, credit, acquired skills to start or expand their businesses and improve their income.

Livelihood and Microfinance Promotion Fund:LAMP Fund invested in 252+ small MFIs/NGO-MFIs, appraisal

BASIX | Annual Report 2014 - 201534

and sanction of 215 loan proposals worth Rs. 4,680 Lakh and Rs. 435.5 lakhs towards institutional development, in the form of returnable grant and grants. There are 33% partners who have taken more than 1 loan from LAMP fund in the last 10 years and there are 56% repeat clients. The total loan outstanding of LAMP fund stands at Rs. 1,219 lakhs with 88 % OTRR. Odisha has highest over dues amounting to 6.6 million with seven clients followed by Andhra Pradesh with five clients with an overdue amount of Rs 2.8 million. Further one client each in Jharkhand, Gujarat, Uttaranchal, Assam & Rajasthan are overdue making a total portfolio of Rs. 123 lakhs at risk, from 18 clients. Non-farm micro enterprise:Over 150 women in Munger district, Bihar have experienced enhancement in their livelihoods through agarbatti production and market linkages for the produce. ITC funded project plan is prepared on yearly basis and IGS supports the women in production of agarbatti using latest techniques like peddle machine, rakes drying, water supply during production etc. Every women earns somewhere between Rs.3000-4000 a month through this activity.

IGS has over 15 projects are ready for implementation and over 10 projects in pipeline.

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Repor‍t of Dir‍ector‍s

ToThe MembersIndian Grameen Services (IGS)

The Directors have pleasure in presenting their 26th Annual Report together with the Audited Accounts of the Company for the financial year ended March 31, 2015

Financial results of the Company for the year 2014-15 are summarised as under:

ParticularsMarch 31,

2015March 31,

2014

Total Revenue 390,442 258,894

Profit before Interest, Depreciation, prior period expenses & Tax

11,788 6,387

Less: Interest 2,325 1,378

Less: Depreciation 2,920 2,620

Less: Prior Period expenses 3,911 -

Profit/ (Loss) Before Tax 2,633 2,389

Less: Tax Expenses

1. Current Tax 1,000 2,016

2. Deferred Tax 1,705 (1,565)

Net Profit/ (Loss) after Tax (72) 1,938

Add: Amount brought forward from Last Year 29,905 23,994

Appropriations:

Proposed Dividend - -

Tax on Proposed Dividend - -

Transfer to General Reserve 8,369 15,918

Balance carried forward to Balance Sheet 38,274 39,912

1. Project Highlights:In 2014 -15 Financial Year, IGS implemented 43 projects in 18 Indian States, to reach more than 15.2 lakhs households. The section below presents, some highlights of IGS work in 2014, around various geographical locations.

IGS resettlement & rehabilitation projects reached 0.10 lakhs households, with special emphasis on the needs of the most vulnerable: tribal, displaced households.

Innovation & incubation on community based eco-tourism has helped 0.0005 lakhs households to derive their livelihoods, including the conservation of bio-diversity.

Almost 1.25 lakhs small & marginal farmers, participated in IGS projects to improve crop production, livestock, increase household income, adapt to responsible crop cultivation, breed up gradation and promote the sustainable use of natural resources.Our solid waste management projects covered 0.64 lakhs

households, improved waste management practices for over 20 municipal corporations.

IGS’s institutional development projects provided almost 1.10 lakhs small & marginal farmers, with improved access to better agricultural practices and better quality input availability, through the handholding support on promotion, nurturing of Farmer Producer Organisation.

Our business correspondence arrangement with three different banks helped more than 12.50 lakhs people gain access to savings, credit, acquire skills to start or expand their businesses and improve their income.

IGS plans for innovation & incubation across a broad range of pragmatic and technical areas, while improving organisation’s ability to share knowledge both within IGS and communities and various stakeholders.

IGS works in the following areas: • Resettlement & Rehabilitation of forest dependent

households, displaced households from large infrastructure projects (e.g. irrigation);

• Eco-tourism;• Agriculture and allied (e.g. livestock) sector based

livelihoods enhancement; • Integratedsolidwastemanagement;• InstitutionalDevelopmentServices;• Renewableenergyinitiatives;• Inclusivefinancialservices;• Nonfarmmicroenterprise.

The strength of the Board as on March 31, 2015 is eight (8) directors. They are as follows:

1. Mr Vijay Mahajan : Chairperson2. Dr Sudha Nair : Independent Director3. Prof Arvind Satyatma Gupta : Independent Director4. Mr Hersh Haladker : Independent Director5. Mr Vijay Rajaram Nadkarni : Independent Director6. Ms Swati Bhargava Desai : Independent Director7. Dr Sankar Datta : Non-independent Director8. Mr Arijit Dutta : Managing Director

AcknowledgmentsYour Directors place on record their sincere appreciation of the support the Company has received from the Ministry of Rural Development, Government of India, Small Farmers Agribusiness Consortium, UNESCO, Sir Rattan Tata Trust, Sir Dorabjee Tata Trust, the Ford Foundation, Development international Desjardins, RBS Foundation, Solidaridad, Safe water network, National Bank for Agriculture & Rural Development, ITC Ltd. and all other well-wishers. On behalf of the Board of Directors

Sd/- Sd/- Arijit Dutta Vijay Mahajan Managing Director Chairperson

Place: New DelhiDate: July 30, 2015

BASIX | Annual Report 2014 - 201536

Balance Sheet as at31-Mar‍-15 31-Mar‍-14

I. EQUITY AND LIABILITIES Shar‍eholder‍s’ funds (a) Share capital 82,500 82,500

(b) Corpus fund 47,077,849 46,354,089 (c) Reserves and surplus 38,274,245 39,911,552

Total of Shar‍eholder‍s’ funds 85,434,594 86,348,141Non-cur‍r‍ent liabilities(a) Long-term borrowings 92,110,000 92,110,000

Total of Non-Cur‍r‍ent liabilities 92,110,000 92,110,000 Cur‍r‍ent liabilities(a) Trade payables 20,397,264 10,912,550 (b) Committed project based grants 67,443,958 66,430,148(c) Other current liabilities 160,861,678 128,399,013 (d) Due for collection (receivable from micro borrowers RBL Bank as banking correspondent) - per contra 1,026,369,290 791,797,776 (e) Due for collection (receivable from micro borrowers YES Bank Ltd as banking correspondent) - per contra 7,655,088 -

Total of Cur‍r‍ent liabilities 1,282,727,278 997,539,487Total 1,460,271,872 1,175,997,628

II. ASSETS Non-cur‍r‍ent assets(a) Fixed assets i) Tangible assets 29,670,693 34,241,894 (b) Non-current investments 508,925 508,925 (c) Deferred tax assets (net) 241,924 1,946,740 (d) Long term loans and advances 164,927,509 160,478,794 (e) Due for collection (payable to RBL Bank from micro borrowers as banking correspondent) - per contra

1,026,369,290

791,797,776

(f) Due for collection (payable to YES Bank Ltd from micro borrowers as banking correspondent) - per contra 7,655,088 -

1,229,373,429 988,974,129 Cur‍r‍ent assets(a) Trade receivables 19,990,290 22,620,670 (b) Cash and cash equivalents 163,607,173 99,230,510 (c) Other current assets 47,300,981 65,172,319

Total of Cur‍r‍ent assets 230,898,444 187,023,499Total 1,460,271,872 1,175,997,628

As per our report of even date for‍ INDIAN GRAMEEN SERVICES

for‍ V. NAGARAJAN & Co.,Chartered Accountants

sd/- sd/- sd/-(V. NAGARAJAN) (Vijay Mahajan) (Ar‍ijit Dutta) Partner Chairman Managing DirectorFirm Regn. No.: 04879N M.No: 019959

Place : New DelhiDate : July 30, 2015

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Statement of Consolidated Income and Expenditure for the year ended31-Mar‍-15 31-Mar‍-14

INCOMERevenue from operations 370,366,949 240,878,276 Other income 20,074,626 17,882,270

Total 390,441,576 258,760,546 EXPENDITURE

Employee benefits expense 161,615,194 137,912,209Operation and other expenses 217,038,724 114,461,871 Finance costs 2,324,831 1,377,998Depreciation and amortisation expense 2,919,557 2,619,608

Total 383,898,305 256,371,686Profit before Exceptional items and tax 6,543,271 2,388,860Exceptional items Prior period expenses 3,910,607 - Tax expense

(a) Income Tax- Current Year tax 1,000,000 1,877,500 - Earlier years - 138,558

(b) Deferred Tax - Deferred Tax assets 1,704,815 (1,564,956)

Profit After Tax (72,152) 1,937,758

Earning per equity share [Basic and diluted] Rs. -87 Rs. 2,349Weighted average number of equity shares (face value of ` 100 each) 825 825

As per our report of even date

for‍ V. NAGARAJAN & Co., for‍ INDIAN GRAMEEN SERVICESChartered Accountants

sd/- sd/- sd/-(V. NAGARAJAN) (Vijay Mahajan) (Ar‍ijit Dutta) Partner Chairman Managing DirectorFirm Regn. No.: 04879N M.No: 019959

Place : New DelhiDate : July 30, 2015

ANDHRA PRADESHBCSAs - 1008

PONDICHERRYBCSAs - 2

MAHARASHTRA CSCs - 1150BCSAs - 269

ORISSACSCs - 925BCSAs - 67

CHATTISGARHBCSAs - 291

MADHYA PRADESHBCSAs - 154

GUJARATBCSAs - 34

RAJASTHANCSCs - 840BCSAs - 18

UTTAR PRADESHBCSAs - 182

BIHARBCSAs - 97

TRIPURACSCs - 145BCSAs - 4

MIZORAMBCSAs - 6

SIKKIMBCSAs - 9

GOABCSAs - 2

ASSAMBCSAs - 63

MEGHALAYACSCs - 225BCSAs - 7

PUNJABCSCs - 831BCSAs - 90

HARYANABCSAs - 45

WEST BENGALBCSAs - 123

KARNATAKABCSAs - 381

TAMILNADUBCSAs - 93

JHARKHANDCSCs - 1019BCSAs - 4

BASIX Connect Outlets (BCOs)

Farmers’ Producer Companies incubated by the BASIX Group

MAHARASHTRA IGS - 3

ORISSACTRAN - 3

CHATTISGARHIGS - 2

MADHYA PRADESHIGS - 2

RAJASTHANIGS - 2

UTTAR PRADESHBASICS Ltd - 55

BIHARIGS - 1

TRIPURAIGS - 3 MIZORAM

IGS - 1

MANIPURIGS - 1

NAGALAND IGS - 2

ARUNACHAL PRADESH IGS - 2SIKKIM

IGS - 2

GOAIGS - 1

MEGHALAYAIGS - 2

WEST BENGALIGS - 4Krishi - 2

JHARKHANDIGS - 3CTRAN - 3

Total : 8084CSCs : 5135BCSAs : 2949

BASIXEquity for Equity

BASIXEquity for Equity

BangladeshBhutanBurkina FASOCambodiaCameroonChinaEthiopiaFijiGhana

IndiaIndonesiaKenyaLaosLesothoMadagascarMalawiMaldivesMali

MozambiqueMyanmarNepalNigeriaPapua New GuineaRwandaSamoaSenegalSolomon Islands

SomaliaSouth AfricaSri LankaTanzaniaTimor-LesteUgandaVanuatuVietnamZambia

Developing Countries in which BASIX worked on Livelihood Promotion

Head Office:3rd Floor, Surabhi Arcade, Bank Street, Troop Bazar, Koti, Hyderabad - 500 001.Phone: +91 - 40-6658 5800/ 66585801 Fax : +91-40-6658 5802

Registered Office:F-5, Ground Floor, Kailash Colony, Greater Kailash Part 1, New Delhi 110 048. Phone: 011- 4173 0252 , 4173 0540

Website : wwww.basixindia.com email : info@basixindia.com