AUDITORS' REPORT
to the Members of Governing Body of Palli Karma-Sahayak Foundation (PKSF)

We have audited the accompanying Balance Sheet of Palli Karma-Sahayak Foundation (PKSF) as on 30 June 2005 and the related Statement of Income and Expenditure, Statement of Cash Flow and Statement of Changes in Equity along with the notes thereto for the year then ended.

The preparation of these financial statements is the responsibility of the PKSF's management. Our responsibility is to express an independent opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing as adopted in Bangladesh. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements, prepared in accordance with International Accounting Standards (IAS) as adopted in Bangladesh, give a true and fair view of the state of the affairs of Palli Karma-Sahayak Foundation (PKSF) as on 30 June 2005 and of the results of its operations and its cash flows for the year then ended and comply with the requirements of the Companies Act 1994 and other applicable laws and regulations.

We also report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by PKSF so far as it appeared from our examination of those books; and

c) the Balance Sheet and the Statement of Income and Expenditure dealt with by the report are in agreement with the books of account.


Dhaka, 30 November 2005

 

Palli Karma-Sahayak Foundation (PKSF)
Balance sheet as on 30 June 2005
.
2005
2004
PROPERTIES AND ASSETS
Notes
Taka
Taka
Current assets
Cash and cash equivalent
Advances, deposits and prepayments
Interest and other receivables
Service charges receivable
Overdue service charges receivable
Current portion of loan to POs under Core Program
Current portion of loan to POs for Capacity Building
Current portion of loan to POs under Other Projects
4
5
6
7
8
9
10
11
13,044,500,835
23,463,173
303,006,432
109,514,026
11,611,423
4,401,106,455
32,687,084
374,107,342
9,140,349,480
8,817,111
174,828,854
140,548,926
513,231
3,423,762,291
11,089,120
342,768,162
Total current assets
.
18,299,996,770
13,242,677,175
Non-Current Assets
Loan to POs under core program-Non Current Portion
Loan to POs for capacity building-Non Current Portion
Loan to POs under other projects-Non Current Portion
Construction in progress - office complex
Investment against provision for gratuity
Property, plant and equipment
9
10
11

12
13
5,439,315,389
26,100,644
419,477,358
8,703,224
17,187,443
154,435,047
6,442,399,312
5,268,647
231,913,880
-
11,817,548
150,982,879
Total non current assets
.
6,065,219,105
6,842,382,266
Total properties and assets  .
24,365,215,875
20,085,059,441
CAPITAL AND LIABILITIES  .    
Current liabilities  .    
Other liabilities
Loan Loss Provision - Core Program
Loan Loss Provision - Capacity Building
Loan Loss Provision - Other Projects
Current portion of Microfinance Loan (MF-I)
Current portion of loan for Other Projects
Current portion of interest on Microfinance Loan (MF-I)
Current portion of interest on loan for Other Projects
 14
15
16
17
18
19
20
21
135,600,691
1,377,998,391
2,914,528
31,436,956
329,299,115
26,116,293
100,014,233
16,439,549
10,001,046
734,435,540
2,091,468
20,731,983
229,109,725
7,484,334
93,970,691
8,419,875
Total current liabilities  .
2,019,819,756
1,106,244,662
Long Term Liabilities
  .    
Microfinance Loan under Core Program (MF-I & MF-II)
Loan for Other Projects
Provision for gratuity and severance allowances
Interest on Microfinance Loan under Core Program (MF-I & MF-II)
Interest on loan for Other Projects
Grant for assets
Deferred income
 18
19
22
20
21
23
14,430,740,932
1,246,929,685
23,826,204
227,646,978
2,761,383
38,510,317
8,566,306
13,260,474,582
1,085,472,982
17,187,217
189,624,517
15,894,962
29,592,189
2,277,496
Total long term liabilities
 .
15,978,981,805
14,600,523,945
Capital Fund
Establishment grants
Retained surplus
Disaster Management Fund
Capacity Building Revolving Loan Fund (RLF)
24
3,250,000,000
2,985,250,139
31,164,175
100,000,000
1,750,000,000
2,602,007,983
26,282,851
-
Total Capital Fund  .
6,366,414,314
4,378,290,834
Total capital and liabilities  .
24,365,215,875
20,085,059,441
The annexed notes 1 to 48 and schedules form an integral part of these financial statements
Parveen Mahmud
Deputy Managing Director
Fakhruddin Ahmed
Managing Director
Wahiduddin Mahmud
Chairman

Signed in terms of our annexed report of even date.
Dhaka, 30November 2005............................................................................................................Auditors

 

 

Palli Karma-Sahayak Foundation (PKSF)
Statement of Income and Expenditure for the year ended 30 June 2005

. 
.
2005
2004
INCOME
Notes
Taka
Taka
Operating income
Service charges
25
503,519,162
574,248,957
Non operating income
Interest on Bank Balance and Short Term Investment
Income from APRMS-2004
Other income

26

27
868,674,909
-
124,661,242
993,336,151
626,023,028
22,219,980
43,294,306
691,537,314
Total income 
1,496,855,313
1,265,786,271
EXPENDITURE
.
General and administrative expenses
.
 . .
Manpower compensation (salaries, allowances & other facilities)
Institutional development and capacity building
Monitoring and evaluation
Occupancy expenses
Research and publication
Depreciation
Other administrative expenses
28
29
30
31
32
33
34
57,188,002
111,343,828
2,414,673
2,563,121
1,010,329
19,181,645
11,437,752
51,088,146
15,313,259
2,812,897
2,242,928
513,273
20,102,674
13,084,193
Total general and administrative expenses
.
205,139,350
105,157,370
Financial cost of operation
.
.
.
Borrowing cost
Bank charges and commission
Loan Loss Provision
35
36
37
148,445,815
46,897
655,090,884
128,279,634
28,817
187,413,456
Total financial cost of operation
.
803,583,596
315,721,907
Expenses for APRMS-2004
.
.
16,056,525
Total expenditure
.
1,008,722,946
436,935,802
Excess of income over expenditure (surplus)
.
.
.
(Transferred to Capital Fund and Disaster Management Fund)
.
488,132,367
828,850,469
The annexed notes 1 to 48 and schedules form an integral part of these financial statements.

Parveen Mahmud
Deputy Managing Director
Fakhruddin Ahmed
Managing Director
Wahiduddin Mahmud
Chairman
Signed in terms of our annexed report of even date
Dhaka, 30 November 2005
Auditors

Palli Karma-Sahayak Foundation (PKSF)
Statement of Cash Flow for the year ended 30 June 2005

 
.
2005
2004
 
Notes
Taka
Taka
A.Cash flow from operating activities .  .  . 
Excess of income over expenditure (Surplus)
Add: Adjustment for items not involving the movement of cash
38
488,132,367
674,356,888
828,850,469
207,364,146
Surplus before changes in operating assets and liabilities . 
1,162,489,255
1,036,214,615
Changes in operating assets and liabilities
.
.
.
Increase in current assets other than loan to POs
Increase in loans to POs - Current Portion
Decrease in loans to POs - Non Current Portion
39
40
41
(122,886,931)
(1,030,281,308)
794,688,448
(133,202,865)
(1,214,252,707)
285,419,773
Net increase in loans to POs
.
(235,592,860)
(928,832,934)
Disbursement of loans to POs
Realization of loans from POs
Increase/(decrease) in current liabilities
Increase in non-current liabilities
Increase/(decrease) in grant for assets
Increase in deferred income
42
43
44
45
(3,660,023,267)
3,424,430,407
139,662,861
31,527,869
8,918,128
6,288,810
(3,405,622,411)
2,476,789,477
(14,220,262)
31,259,226
(3,355,680)
1,297,393
 
.
(172,082,123)
(1,047,055,122)
Net cash flows from operating activities
.
990,407,132
(10,840,507)
B. Cash flows from investing activities
.
.
.
Acquisition of fixed assets
Sale of fixed assets
Construction in progress - Office Complex
Investment against provision for gratuity
13
(22,727,060)
-
(8,703,224)
(5,369,895)
(5,993,831)
589,391
-
(2,580,434)
Net cash used in investing activities
.
(36,800,179)
(7,984,874)
C. Cash flows from financing activities
.
.
.
Establishment grants
Micro-Finance Loan under Core Program
Loan for Other Projects

46
47
1,500,000,000
1,270,455,740
180,088,662
-
2,755,614,344
379,716,951
Net cash flows from financing activities
.
2,950,544,402
3,135,331,295
Net increase/(decrease) in cash and bank balances
.
3,904,151,355
3,116,505,914
Opening cash and cash equivalents
Closing cash and cash equivalents
.
9,140,349,480
13,044,500,835
6,023,843,566
9,140,349,480

Parveen Mahmud
Deputy Managing Director
Fakhruddin Ahmed
Managing Director
Wahiduddin Mahmud
Chairman

PALLI KARMA-SAHAYAK FOUNDATION (PKSF)
Statement of Changes in Equity for the year ended 30 June 2005

Particulars
Establishment grants
Disaster
Management
Fund
Capacity Building
Revolving Loan
Fund (RLF)
Retained
Surplus
Total
GOB
(Own sources)
GOB
(USAID PL-480)
Total
Balance as on 1 July 2003
Prior year adjustment
Taka

1,100,000,000
-
Taka

650,000,000
-
Taka

1,750,000,000
-
Taka

17,994,346
-
Taka

-
-
Taka

1,781,440,200
5,819
Taka

3,549,434,546
5,819
Restated opening balance
Surplus for the year 2003-2004
Transfer to Disaster Management Fund
1,100,000,000
-
-
650,000,000
-
-
1,750,000,000
-
-
17,994,346
-
8,288,505
-
-
-
1,781,446,019
828,850,469
(8,288,505)
3,549,440,365
828,850,469
-
Balance as on 30 June 2004 1,100,000,000 650,000,000 1,750,000,000 26,282,851
-
2,602,007,983
4,378,290,834
Balance as on 1 July 2004
Prior year adjustment
 1,100,000,000
-
 650,000,000
-
 1,750,000,000
-
 26,282,851
-
-
-
2,602,007,983
(8,887)
4,378,290,834
(8,887)
Restated opening balance
Fund received during the year 2004-2005
Surplus for the year 2004-2005
Transfer to Disaster Management Fund
Transfer to Capacity Building Revolving Loan Fund (RLF)
1,100,000,000

1,500,000,000

-

-

-
650,000,000

-

-

-

-
1,750,000,000

1,500,000,000

-

-

-
26,282,851

-

-

4,881,324

-

-
-

-

-

100,000,000
2,601,999,096

-

488,132,367

(4,881,324)


(100,000,000)
4,378,281,947

1,500,000,000

488,132,367

-
-
Balance as on 30 June 2005 2,600,000,000 650,000,000 3,250,000,000 31,164,175
100,000,000
2,985,250,139
6,366,414,314

 

Financial Highlights

The figures shown below are taken from the audited financial statements of Palli Karma-Sahayak Foundation (PKSF) for the year ended 30 June 2005 and all balances have been stated in terms of the value of the Bangladeshi Taka as at 30 June 2005:

.
2005
2004
Results for the year
Taka
Taka
Total income
Total expenditure
Excess of income over expenditure (surplus)
1,496,855,313
1,008,722,946
488,132,367
1,265,786,271
436,935,802
828,850,469
At the end of the year
.
.
Total loans to Partner Organizations (POs)
Loans to large POs (BIPOOL)
Loans to small and medium sized POs (OOSA)
Loans to rural microcredit borrowers
Loans to urban microcredit borrowers
Loans to hard-core poor
Loans to ultra hard-core poor
Loans for micro-enterprise lending
Loans for micro-enterpreneurs lending
Loans to POs for capacity building
Capital fund
Total properties and assets
10,692,794,272
5,327,365,996
5,365,428,276
8,386,624,493
865,559,971
568,520,000
112,498,750
351,403,330
349,400,000
58,787,728
6,366,414,314
24,365,215,875
10,457,201,412
7,105,332,851
3,351,868,561
9,019,408,173
979,713,322
950,000
42,590,150
398,182,000
-
16,357,767
4,378,290,834
20,085,059,441
Returns
.
.
Surplus as % of average capital fund
Surplus as % of average portfolio
Surplus as % of average total assets
9.09%
4.62%
2.20%
21.03%
8.29%
4.60%
Ratios
.
.
Cumulative loan collection ratio on total dues
Loan collection ratio on current dues
Current ratio
Debt/equity ratio
Debt service cover ratio
General and administrative expenses as % of average portfolio
Total loan principal affected by arrears as % of outstanding portfolio
96.33%
98.46%
9.06:1.00
2.56:1.00
4.29 times
1.94%
29.62%
98.09%
97.48%
11.97:1.00
3.35:1.00
7.46 times
1.05%
10.81%