RBS Foundation India Report 2011

contactus
near you. with you.
committed.
RBS Foundation India
The Royal Bank of Scotland N.V.
7th floor, Sakhar Bhavan,
Nariman Point, Mumbai,
Maharashtra, India.
Postal Code 400021.
Tel.: +91 (22) 6656 3786
Fax: +91 (22) 6637 2568
Email: foundation@rbs.com
RBS Foundation India
© RBS Foundation India | The Royal Bank of Scotland N.V.
For private circulation only.
Supporting Enterprise
Annual Report 2010 - 11
ourmission
We believe in delivering
real and sustainable benefits
to our communities.
Our mission is to support the most
vulnerable and poor in our
communities by developing
innovative models in Microfinance,
Livelihoods and Financial Literacy,
thereby promoting financial
inclusion and micro-enterprises.
contents
p4-11
messages
anoverviewp12, 13
theneedp14
milestonesp15
projectcoveragep16, 17
focusareasp18-43
structure&managementp44
risk&controlp45
auditor’sreportp46-54
projectpartnersp55
p56
acknowledgements
Chairperson
Board of Directors
RBS Foundation India
We must strive continuously
to understand the role of business
in tackling the critical issues
of human development and
environmental sustainability
in developing countries.”
It is my privilege to present to you
the annual report of the RBS
Foundation India (RBS-FI).
Our mission is to attempt to
address the core issues of poverty
and environmental degradation in
India through the tools of Financial
Inclusion and Financial Literacy.
In this we are guided by the vision
stated in the Millennium
Development Goals: ‘A world with
less poverty, hunger and disease,
greater survival prospects for
mothers and their infants, better
educated children, equal
opportunities for women, and a
healthier environment’. Sadly, we
are still a long way from realising
these shared goals in India.
The role that the Corporate
Community voluntarily adopts in
addressing these issues will
determine our own sustainability.
Key stakeholders whose views
shape our on-going success,
namely Clients, Employees &
Regulators are increasingly
demanding that Banks & Financial
Institutions invest meaningfully in
the communities on which they
rely for their profits.
The objective of this report is to
share with you the outcomes of
work of the RBS Foundation India
in Community Investment during
04
2010-11. In India, the areas of
poverty, equity and environment
are key socio-economic indicators
and as a result, these areas have
been the focus of our efforts.
The empowerment of women is
widely recognised as a key
determinant in improving the
social and economic conditions of
a community. Empowerment in
turn is determined by economic
opportunity, social equality, and
personal rights. In many parts of
rural India, women are denied
these opportunities. They are
perceived as not having the ability
to generate an income, and hence,
relegated to household duties
and/or cheap labour. Without the
power to work and earn deserving
incomes, their voices are silenced
and traditional perceptions remain
unchallenged.
The RBS Foundation thus focuses
on women as the primary
beneficiaries of our Livelihood
assistance projects. As education is
critical in helping to empower
women, the RBS-FI focuses on
entrepreneurial training for
women, with the objective of
creating economic opportunities,
improving financial literacy and
connecting these women to
relevant financial services.
As important as What we do is How
we do it.
We strongly believe that by
harnessing the collective talent
pool of our employees we can
bring both knowledge as well as
passion to solving the challenges
of community work. To encourage
employee volunteering
involvement in community work,
RBS Business Leaders in India
encourage their staff to participate
in ‘MAGIC HANDS at WORK’ our
Employee volunteering
programme. The Foundation offers
a range of hands on opportunities
at our projects and equips our staff
with training and tools to conduct
impact assessments on Poverty &
Biodiversity.
I take this opportunity to thank you
for your continued support. I hope
that the insights outlined in this
report strongly evoke our passion
for proactive social change and our
commitment to making it happen.
Meera H. Sanyal
05
Head, Global Banking
& Markets, South-East
Asia and India
and CEO, Singapore
Financial Institutions and corporations
have a major impact on social issues.
Including responsibility for these
issues in a business model provides
the means for a positive social
influence.”
06
Is it prudent for a corporation to be
involved with philanthropy and
social initiatives? We think so. By
aligning our business goals with
social initiatives we believe RBS
can foster community
sustainability with corporate
growth.
We strengthen our communities by
providing good jobs, donating our
time and talents, supporting under
served populations and promoting
education programs that create
economic opportunity. We also
focus on environmental
sustainability through partnering
with other agencies to unlock the
full potential of positive change at
the community level.
Organising the infrastructure of a
company to include these
principles, there does not need to
be a separation between business
and social participation.
The motivation for companies to
be socially responsible revolves
around sustainability which is at
the heart of RBS Foundation India.
Madan Menon
07
Senior Independent
Director, RBS
and Chairman, Group Sustainability
Committee
At RBS, we focus our external support
on areas where we have greatest
expertise and so can make a real
difference. In India, our focus has
been on encouraging enterprise as
a route to financial inclusion for
individuals, families and
communities.”
08
The Royal Bank of Scotland Group
(RBS) is an international business
that is committed to supporting
the local communities in which it
operates, wherever they may be.
The Group's commitment to
Sustainability is reflected in the
excellent work done by the
RBS Foundation India. Throughout
this report, you can read testimony
from people whose lives have
been improved through the
Foundation's work, and specifically
its focus on the power of
enterprise to change lives.
entrepreneurial skills. And the
power of enterprise is also put to
good use through the Livelihoods
Assistance Programme - which
helps fragile communities find
prosperity whilst becoming
environmentally sustainable.
Combined, we believe our efforts
play a small, but important, part in
building communities that can
participate in India's growing
prosperity.
Sir Sandy Crombie
At RBS, we focus our external
support on areas where we have
greatest expertise and so can make
a real difference. For example, in
the UK, our MoneySense financial
education programme has been
running in schools for 17 years to
help young people learn about
money. In India, our focus has been
on encouraging enterprise as a
route to financial inclusion for
individuals, families and
communities. Previously, that
included technical assistance for
microfinance institutions in areas
that lacked this kind of support.
Our current programmes are
designed specifically to empower
women - building on their special
role and responsibility in the
family - by helping them develop
their financial awareness and
09
Director & Head
RBS Foundation India
Since 2006, RBS Foundation India
has been engaged actively in and
around the forest fringe areas,
empowering communities dependent
on critical ecosystem resources in
the tiger landscapes by providing
them with alternative livelihood
opportunities.”
We began this journey in 2003,
with the launch of our microfinance business where we learnt
that the poorest regions were often
deprived of financial inclusion. To
address this we:
l
l
l
10
Developed a specialised
Technical Assistance Programme
that has built capacities of more
than 37 robust micro-finance
service providers in the
underserved parts of the country.
Strengthened our commitment to
local communities with a second
level of engagement - our
Supporting Enterprises
Programme - targeting vulnerable
communities located in or
around ecosystems at risk, with
the objective of alleviating
poverty through the conservation
of natural resources.
A glance at our country’s map will
reveal that regions of extreme
poverty and areas of continued
loss of bio-diversity overlap.
Where livelihoods depend
disproportionately on natural
resources, poverty persists.
We work in geographic regions in
the country at the ‘intersection of
poverty and critical ecosystems’.
Our Supporting Enterprises
Programme exists to support
projects that create and enhance
sustainable livelihoods for poor
communities that are dependent
on natural resources. Increasing
incomes from sources other than
forest resources assists efforts to
reduce/eliminate the
unsustainable dependence on
ecosystem resources. Thus, many
of our Supporting Enterprises
projects are located in tiger
landscapes and other such
ecologically important areas.
Our programmes are implemented
through Non Government
Organisations (NGOs) and Microfinance Institutions (MFIs) with a
strong community presence. In an
effort to increase the value we add
to local communities, we also work
with local government agencies.
Realising our commitment to
Financial Inclusion for all
communities, the Foundation is set
to roll out financial literacy
programmes to 1 million women
by March 2012 using a
combination of various ICT tools.
We invite you to be a part of this
journey and to read more about
our work that is captured in this
report. We will be calling upon you
for input, advice, suggestions and
support. Working together, we can
strive to realise sustainable social
change in India- a change that we
all believe is both possible and
essential.
N. Sunil Kumar
11
anoverview
RBS Foundation India works with
India’s most vulnerable - those living
in both, the buffer regions of protected
areas (National Parks, Sanctuaries,
and Reserves) and corridors between
protected areas.
In 2007, we strengthened our commitment
to local communities through promotion
of micro-enterprises. Our partnerships
with NGOs allowed us to reduce
anthropogenic pressures on critical
ecosystem resources by developing
alternative livelihood opportunities and
accessing health and education services,
thereby fostering conservation.
The poor face two major disadvantages
in the market economy - poor quality
and lack of scale.
To help achieve critical mass, our micro-enterprise initiatives have been focused
on skill development.
Economic growth
can be attained if
the Government’s
efforts are supported
by business and
civil society.
12
13
theneed
1210 million – more than 17% of
the global population and 25% of
the global livestock population is
spread over 2.4% of the global
land mass. Land, people and
forests are inextricably linked.
Agriculture accounts for the largest
land use, followed by forestry
which covers 69 million ha or 21%
of the total land base.
275 million or 27% of the
population - mostly rural poor depend on forests for at least part
of their subsistence and cash
livelihoods, which they earn from
fuel wood, fodder, poles and a
range of non-timber forest produce
(NTFP) such as fruit, flowers, lac,
medicinal plants, honey and wax.
70% of India’s rural population
depend on fuel wood to meet
domestic energy needs.
Approximately 78% of forest is
subject to heavy grazing
50% of forests are exposed to fires
Shifting cultivation affects almost
10 million ha of forest
14
milestones
Half of India’s 90 million tribal
people - the most disadvantaged
in society, live in forest fringe
areas and have close cultural and
economic links with the forest.
Yet forests are rapidly deteriorating
due to encroachment of
agricultural production, mining,
construction of dams, industrial
and railway demand. The country
has been losing 1.5 million
hectares of forest cover annually
(GOI, 1988).
It’s estimated that 41% of India’s
forest cover has been degraded to
some degree over the last few
decades.
Half of India’s
90 million tribal
people, the most
disadvantaged in
society, live in
forest fringe areas
and have close
cultural and
economic links
with the forest.
India’s population has grown, from
390 million in 1950 to 1210
million in 2011
programme
technicalassistance
37 projects
13 States
Beneficiaries: 2,04,589 households
Assam, Bihar, Delhi, Jharkhand, Karnataka,
Madhya Pradesh, Maharashtra, Manipur,
Orissa, Rajasthan, Uttar Pradesh,
Uttarakhand and West Bengal
livelihoodssupport
19 Projects
13 States
Beneficiaries: 64,127 households
Andhra Pradesh, Gujarat, Jharkhand,
Kerala, Madhya Pradesh, Maharashtra,
NCR, Orissa, Rajasthan, Tamil Nadu,
Uttar Pradesh, Uttarakhand and
West Bengal
4.5 million ha of forest has been
lost since 1950 through
agricultural conversion and other
uses
employeeengagement
287 Employee Volunteers
15,599 working hours
By 2002, 1.36 million ha of forest
had been encroached , with
evictions covering only 10% of
affected land by 2004.
Source: WB Report on ‘Unlocking opportunities for
forest dependent people in India’, February 2006)
15
projectcoverage
l Technical Assistance
n Livelihoods Support
Technical Assistance
Assam
1 Ajagar Social Circle, Goalpara
2 Grameen Sahara, Kamrup,
3 Nightingale Charitable Society,
Guwahati
4 Panchratna, Nalbari
5 SDCCC, Darrang
46
43
36
Bihar
6 CDOT, Nalanda
7 Trust Microfin Services,
Muzaffarpur
8 Gramyasheel, Supaul
9 Nidan, Patna
63
31
33
26
62
29
58
59
30
32, 34 & 35
17
7
14
23
20
28
13
55
39
40
48
60
61
56
57
5
1
2&3
24 & 25
12
37
64
18
52
53
54
16
47
42
19 & 21
22
11
49
50
51
15
38
6
10
16
44
45
8
41
9
4
Jharkhand
10 Ajiwika, Deogarh,
11 SUPPORT, Hazaribagh
12 Samarthan, Jamtara
Karnataka
13 Nirantara Community Services,
Bidar
Madhya Pradesh
14 Lok Biradari Trust, Indore,
15 MCM, Bhopal
16 AES, Satna
17 VAMA, Gwalior
Maharashtra
18 Dmatrix (GSST), Wardha,
19 Hindusthan, Mumbai,
20 Sampada Trust, Ahmednagar,
21 Svasti Foundation, Mumbai,
22 DST, Pune
23 KVGPS (Krushi), Buldana,
Manipur
24 Chanura, Imphal
25 WSDS, Imphal
New Delhi
26 SDF, Delhi
Orissa
28 Sanginee, Kalahandi
Kerala
48 Evangelical Social Action Forum
Rajasthan
29 MITR, Alwar
30 BGFL, Jodhpur
Madhya Pradesh
49 Foundation For Ecological
Security
50 Indian Grameen Services
51 Watershed Organisation Trust
Uttarakhand
31 PAHAL, Kathgodam,
Uttar Pradesh
32 Jaago, Lucknow
33 RISE, Ghaziabad
34 Samridhi, Lucknow
35 BMC, Lucknow
36 Disha, Saharanpur
West Bengal
37 SSVWS, Kolkata
38 KRS, Coochbehar
Livelihoods Support
Andhra Pradesh
39 Conservation of Nature through
Rural Awakening
40 Asha Handicrafts Association
Bihar
41 PRADAN
Chhattisgarh
42 PRADAN
Delhi
43 Asha Handicrafts Association
Maharashtra
52 Population First
53 Indian Grameen Services
54 Asha Handicrafts Association
55 Satpuda Foundation
Orissa
56 Council of Professional Social
Workers
57 Indian Grameen Services
Rajasthan
58 Access Development Services
59 Asha Handicrafts Association
Tamil Nadu
60 Srinivasan Services Trust
61 Asha Handicrafts Association
Uttar Pradesh
62 Asha Handicrafts Association
Uttarakhand
63 Appropriate Technology India
West Bengal
64 Nature Environment & Wildlife
Society
Gujarat
44 Asha Handicrafts Association
45 Development Support Centre
Jammu and Kashmir
46 Ladakh Rural Women
Enterprising Society
Jharkhand
47 PRADAN
17
focusareas
technicalassistance
livelihoodssupport
employeeengagement
18
19
technicalassistance
Project Partner: Microsave
Technical Assistance for Micro Finance
Institutes (MFI’s) enabled 37 small
MFI’s located in the under-banked
regions of the country to improve their
Business Management systems and
Governance.
The programme came to a closure
in 2011. Funded jointly by the
Foundation and Stitching CORDAID
(a Dutch development
organisation) it consisted of three
components:
l
Capacity building
Setting up robust systems and
processes via onsite support and
training, thereby enabling the
MFI to scale up its operations
l
Consultant development
Nurturing local consultants to
ensure partners have access to
quality technical expertise and
mentoring support in a
sustainable manner
l
Toolkit development
Developing structured “ready to
use” training material in key
areas such as Governance,
internal controls, financial
management and accounting
systems, available to the larger
microfinance sector, as well as a
comprehensive Do It Yourself
toolkit, (‘MFI Out Of A Box’).
The 18 month structured programme made it possible for MFI's to scale up
their operations, access bank funds and increase their outreach i.e. provide
small value loans to the unbanked communities.
“The RBS-FI programme is a large
scale, long term intervention in
institutional development. It has
succeeded in engaging with and
improving the performance of
small and fledgling MFIs operating
in difficult geographies. The
improvements have not been
limited to operational systems,
processes and staff skill sets financial and business
performance has also significantly
improved, exceeding that of
comparable MFIs in the sector. The
MFIs experienced learning even as
they were developing with visible
progress and improvement.
Given the large foot print of the
programme, it would have been a
challenge to ensure quality across
institutions and regions. With the
majority of institutions expressing
their satisfaction, the programme
was considered to be effective in
both design, and implementation
and highly impactful. The
willingness of partner MFIs to pay
for such services is a reflection of
the utility and relevance of the
programme. While ongoing
improvements must be made to
ensure its ongoing effectiveness in
the context of developments in the
sector, the implementers and
funders must be acknowledged for
bringing to fruition a sound idea.”
- End of program review by
N. Srinivasan
20
21
livelihoodssupport
The Supporting Enterprises Programme
of the Foundation supports projects that
create and enhance sustainable livelihoods
for poor communities dependent on the
country’s critical natural resources.
Livelihood enhancement
Livelihood interventions are
provided according to local need
analysis and market studies. These
interventions are aimed at
improving and developing
sustainable sources of incomes.
Each of the Foundation’s projects
includes one or more of the
following activities:
l
l
22
insemination, fodder
management, dairy management
and integration with milk routes.
Adoption of stall-fed practices is
sought for better incomes and for
removal of grazing pressure on
forest ecosystems.
Community Governance
Agriculture - technical support is
provided to improve the
productivity of the land,
availability of water, scientific
agriculture practices, higher
quality seeds, organic manure
etc. The aim is to improve
productivity, crop diversification
and risk mitigation and
production.
Eco Tourism - the community is
trained in various aspects of
hospitality, communications,
book-keeping, marketing, ecofriendly tourism and assistance
with infrastructure in ecologically
sensitive locations.
l
Handicrafts - the focus is on
improving the skills, new product
development, exposure and
linkages to markets as well as
improving capabilities to manage
small businesses
l
Dairy - expertise is provided for
breed improvements, artificial
l
Apiculture - guidance and advice
is provided on alternative
techniques, semi processing of
produce and marketing.
l
Non Timber Forest Produce - an
important source of cash income,
the community is equipped to
form collectives and add value to
the produce by cleaning, grading
and extraction and seek newer
markets.
established with Micro Finance
Institutes and Banks to enable the
enterprise members to access
loans for business needs.
Impact Assessments
Employees play an important role
in collecting crucial data for impact
assessments. Third party impact
assessments are conducted on
projects to measure the progress
against the plan.
Market linkages
Efforts are made to create and
establish market linkages through
the aggregation of produce, with
the objective of removing and/or
reducing the middle men from the
value chain. This enables the
community to realise better prices.
Financial Linkages
Scaling up of the livelihood
initiatives is dependent on the
availability of finances. Over time,
community owned and managed
revolving funds are developed to
provide small value loans to the
community and build credit
histories to allow access to
institutional finance. Linkages are
23
mangalojodichilka
simlipaltiger
Eco Tourism as a sustainable livelihood
Sustainable livelihoods for tribal communities
Beneficiaries: 500 households
Project Partner: Indian Grameen Services (IGS)
Beneficiaries: 1000 households
Project Partner: Indian Grameen Services (IGS)
Chilka, the largest coastal lagoon in
India is recognised globally for its
rich biodiversity and as home to an
abundance of migratory bird
species. Mangalajodi is one of the
largest of the 132 villages located
on the banks of Chilka. A decade
long community conservation
effort initiated by Wild Orissa has
resulted in the creation of a Bird
Protection committee that patrols
the waters during the winter
migrant season and throughout the
native species breeding season. As
a result of this protection, Bombay
Natural History Society and others
have reported an increase in
migrant arrivals and breeding
success among local species.
The Simlipal Biosphere Reserve
(SBR) is spread across more than
5,000 sq.km. and encompasses
2,750 sq.km. of Simlipal tiger
reserve. The region is home to
eight rivers, 1,076 plant species,
42 mammal species, 242 bird
species, 30 reptile species and
wide variety of micro flora and
fauna. The region is also one of the
major tiger reserves and connected
to the Saranda forests in Jharkhand
and the Satkosia Reserve forest in
Orissa. The core region is made up
of four villages while the buffer
region is made up of 60 villages.
The relationship between
communities and the ecosystem
has been fractious and hostile and
as a result, is not sustainable.
lake
The increased interest in bird life
from researchers, bird watchers
and day visitors led to a
community based eco tourism
project being initiated by the
Foundation in the villages of Dhani
and Mangalajodi. The purpose of
this project is to proactively
protect the forests of local
community members and in turn,
sustain their livelihoods.
24
This eco-resort is a unique
convergence of efforts by:
l
The Foundation and IGS maintaining community relations;
l
Wild Orissa - providing expertise
in conservation and wildlife
protection;
l
Four RBS employee volunteers,
who developed the marketing
and business plans for the resort
were among the first guests.
The local community has been
trained to manage the Eco Tourism
Trust that has been formed within
the project as overseen by Gram
Sabha. Local youth are trained in
aspects of hospitality, including
catering, guiding tourists, book
keeping and marketing to ensure a
steady flow of tourists. This model
demonstrates that conservation
efforts have assisted in building
and strengthening livelihood
options. Potential for revenue
generation is a positive motivator
for conservation, giving value to
and supporting the model of
community based eco-tourism
replicated in eco-sensitive zones.
reserve, orissa
settlers continue to exert pressure
on the ecosystem.
As such, the Foundation through
IGS provides an integrated
livelihood promotion service to
tribal and non-tribal households in
21 of these villages, with the
objective of enhancing their
incomes whilst reducing biotic
pressure on the Simlipal biosphere
reserve. In another village, the
project is also providing vocational
training to youths and working age
groups on trades such as plumbing,
driving, carpentry, and electronics
which demand skilled hands in the
neighbouring industrial districts.
The Governments of India and
Orissa have been working to
enhance livelihoods and steer
communities away from the critical
ecosystem resources. The four core
villages have agreed to relocate
with the enhanced government
package. The 60 buffer villages
comprised of the Mankadia and
Khadia tribes and non-tribal
25
kanhanational
park, madhya pradesh
bandhavgarhnational
park
Sustainable livelihoods for tribal communities
Sustainable livelihoods for tribal communities
Beneficiaries: 1500 households
Project Partner: Foundation for Ecological Security (FES)
Beneficiaries: 417 households
Project Partner: Indian Grameen Services (IGS)
The Bichhia Tehsil of Mandla
District falls under the rich
biodiversity zone of Kanha
National Park. The park is located
in the vast and extensive forest
belt of the Satpuras and the
Vindhyas which stretch almost
500km east to west. This part of
Madhya Pradesh and Chhattisgarh
is home to crucial forest and
grassland ecosystems along with
dense tribal populations.
The Foundation’s project is a part
of the “Mahakaushal” region which
is predominantly inhabited by the
Gond and Baiga communities, the
latter being a primitive tribe
dependent on hunting and
gathering food. The livelihood
portfolio of the population
comprises three basic components:
- agriculture, forest produce and
wage labour. Agriculture is still in
the primitive stage, with 91%
being rain-fed. The average land
holding is as low as one hectare,
with varying compositions of
uplands where minor millets such
as kodo and kutki, and oil seeds
such as niger and maize are grown
26
and mid and low lands suitable for
paddy. This subsistence agriculture
supports food requirements for
about 6 - 7 months of the year and
therefore there is great
dependence on wage labour and
the sale of forest produce. As such,
a large proportion of the
population is prone to seasonal
migration in search of livelihoods.
This project in partnership with FES
has:
l
Strengthened institutional
processes for pro-poor and
gender sensitive arrangements of
natural resource governance at
both habitation & regional level;
l
Improved farm and non-farm
livelihood options of the poor,
reducing vulnerability of local
communities and biotic pressure
from bio-diversity rich areas;
l
l
Promoted enhanced interface
between scientific knowledge
and traditional wisdom to
achieve development and
conservation goals;
Reduced biotic pressure and
optimised anthropological
interaction in the eco-sensitive
zones in the park and its
adjoining areas.
The Bandhavgarh National Park
(BNP) is located in central India
between the Vindhyan hill range
and the eastern flank of the
Satpura hill range. It is among the
most viable ecosystems in the
region with a total area of 1165
sq.km. Fourteen villages located in
the core are eligible for relocation
with an attractive package of Rs 1
million per adult. In the delineated
buffer zone (yet to be notified)
there are 61 villages with a
population of 28,519 and more
than 50,000 cattle. These villages
host largely tribal communities
comprising Gonds, Baigas, Ahirs
and Kachhis, most of who live
below the poverty line (less than
$1USD per day / marginal
landholdings). The cattle are
unproductive and the livelihoods
are dependent upon illegal and
unsustainable harvest of forest
resources. Present livelihoods do
not support either their
communities or the ecosystem.
RBS-FI in partnership with IGS has
established community
governance through the creation
of multi-tier structures, linkages
for finance and markets leading to
sustainable livelihoods:
l
Self Help Groups based micro
enterprises and technical
interventions in multiple
livelihood activities;
l
Improved crop production and
protection, surface and ground
water management and irrigation
practices;
l
Holistic approach to livestock
development, by reducing and /
or replacing unproductive cattle
herds with improved local variety
and adopting stall feeding;
l
Mass vegetable cultivation for
aggregation of produce for
access markets;
l
Backyard poultry;
l
Apiculture to improve agriculture
productivity and as an alternative
livelihood option;
l
Medicinal herb plantation at high
lands;
l
Artisan clusters such as; pottery
and basket making, and
l
Introduction of 'Wadi'(small
orchard) program
These efforts have increased the
incomes of the project villagers
whilst reducing their dependence
on forest resources.
27
deogharjharkhand
akolamaharashtra
Support to women producers of MASUTA
Carbon Markets for the poor
Beneficiaries: 2600 women
Project Partner: PRADAN
Beneficiaries: 1200 households
Project Partner: Satpuda Foundation
MASUTA is a one-of-its-kind tussar
silk producers’ collective in India.
Stemming from the development
of PRADAN, the company has 2,600
women producer members spread
over Jharkhand, Bihar and
Chhattisgarh but mostly around
Deoghar.
The working capital requirement of
Tussar is unique as the commercial
cocoon is available only once a
year between October and
December. There is no formal
marketing channel for its
procurement and it is purchased
from the individual. State
Governments have tried to
organise rearers around cooperatives but this has not been
successful. MASUTA therefore
needs to procure the entire year’s
cocoon supply and store it in a
warehouse. This requires funds, of
which the producers need to bear
the stock holding cost.
Since its formation, the producer
company is financially sustainable
but the income of its member
producers is low comparative to
effort. As a result, an alternate
28
quasi-equity structure, was
thought to help the company grow
with reduced dependence on
expensive debts, and therefore
better incomes for the producers.
The Foundation is providing
working capital support to the
female yarn producers of MASUTA
via a revolving equity fund.
Satpuda landscape in central India
is important in its rich bio-diversity.
The landscape is spread over
20,000 sq.km comprising five
important tiger reserves with a
network of protected areas .
Melghat Tiger Reserve (MTR) is just
one of them, with 58 tigers across
an area of 1600 sq.km. Years of
unsustainable land use has
resulted in significant land
degradation. Together with a
rapidly growing population, this in
turn has resulted in added
pressure on Melghat’s resources.
RBS-FI together with the Satpuda
Foundation created a project to:
l
Restore and conserve the
environmental resources (ecorestoration) in a participatory
manner;
l
Improve the socio-economic
conditions of the community by
sharing benefits of conservation
and enhancing livelihood
support;
l
Facilitate and enable the
community to obtain benefits
from carbon credits.
Eco-restoration entails treatment
of soil, watershed and plantation
of plant and tree species in the
same mix and densities as per
those already existing in the good
habitats of the adjoining Melghat
Tiger Reserve. Each of the
households has been provided
entitlement letters with
responsibilities for watch and care
over their allocated parcels of land.
Communities have undertaken
watershed development, fodder
development and plantation
cultivation on 2,500 hectares of
land with usufruct rights over plant
produce and carbon credits. The
cash flow has increased two and a
half times over a period of three
years. The community is looking
forward to the additional benefits
from carbon credits which will flow
once the CERs / VERs are sold.
29
melghattiger
project, maharashtra
gujarat
Enhancing livelihoods of resettled tribal population
Livelihood Enhancement through participatory
natural resource management
Beneficiaries: 338 households
Project Partner: Indian Grameen Services (IGS)
Beneficiaries: 45,000 households
Project Partner: Development Support Centre (DSC)
Three villages from the core of
Melghat Tiger Reserve were
voluntarily resettled to the
adjoining non-forest block of
Akola-Bori, Koha and Kund. The
success of this initiative saw an
additional three villages resettled.
Conscious of the harmful effects of
excessive and indiscriminate use
of chemicals on the environment
and agro-ecology, as well as the
longer term sustainability of
agriculture. RBS-FI is directing
agricultural livelihoods towards
sustainability in the four districts
of Mehsana, Sabarkantha,
Ahmedabad and Amreli of Gujarat.
These districts cover an area of
approximately 45,000 ha and
account for 45,000 households.
Our involvement ensured a smooth
transition and rehabilitation of
these villages, improving the
livelihoods of households
economically and socially through
strong community-based
institutions, thereby reducing
biotic pressures on the nearby
tiger reserve. We have successfully
established community based in
dairying, irrigation, agricultural
produce and marketing. Conflict
resolution is conducted at
community level.
The project and its objectives were
communicated to the local
community. Activities are planned
with the Gram Sabha and its
implementation monitored by
them. Local youth have also been
trained to provide continued
support following completion of
the project.
30
This activity aims to improve rural
economy through participatory
natural resource management in
selected drought-prone areas. The
success of this activity has resulted
in the dissemination of effective
productivity enhancement
practices and techniques in Gujarat
to the rest of India. It relies on the
existing technical and social
infrastructure at a grassroots level
and multiplies the benefits to this
region. It leverages the collective
strength of a community to
improve land productivity, yields
and realisation.
The 2004 Gujarat Human
Development Report together with
our own experiences working in
rain fed and irrigated areas guided
us in adopting a multi-pronged
approach to increase agriculture
productivity, reducing input costs
and reducing the risks faced by the
rural communities.
The need for this project was
identified during pre-project PRAs
conducted with farmers to
understand factors affecting
agriculture as a viable livelihood.
The main issues related to
information gaps, lack of a reliable
extension system, high cost of
inputs, risks related to farming and
marketing of produce and poor
price realization. These were
validated through a professional
study conducted in 2008. The
results of the study indicated
significant yield gaps in almost all
crops cultivated by the farmers in
all project areas. The study also
identified causes and suggested
remedial measures, which formed
the basis of the interventions.
Crop productivity increased from
23% to 167%, Input cost reduced
by 25% to 50%. Farmers who
adopted the PoP’s experienced a
net increase in incomes from INR
10,000 - 20,000 per ha.
Interventions on vermin compost,
mulching and Micro Irrigation
Systems have indicated that
sustained use can have positive
impact on the environment.
Over a three year period, 11,000
farmers adopted the new practises
that were demonstrated, resulting
into several gains and learning’s.
31
sunderbanswest
uttarakhand
A lifeline for the Sunderban Biosphere Reserve
Integrated livelihood skills in hills of Uttarakhand
Beneficiaries: 450 households
Project Partner: Nature Environment and Wildlife Society (NEWS)
Beneficiaries: 1000 households
Project Partner: Appropriate Technology India (ATI)
Sunderbans is among the largest
mangrove habitat in the world,
spanning 26,000 sq.km. across
India and Bangladesh - ecologically
very sensitive, productive and
economically critical to the region.
The mangrove ecosystem plays a
vital role in protecting the coast
against cyclonic activity, which is
common to the Bay of Bengal.
States that have the highest level
of poverty often have the highest
reserves of natural resources. The
acute poverty can be attributed to
the population’s dependence on
the natural resource base for their
livelihoods, often unsustainably.
bengal
Fifty two of the 104 Sunderban
villages inhabit this hostile
environment. Life is a constant
battle against the elements, with
the ongoing erosion of
embankments that protect the
villages from tidal inundation.
Livelihoods are unsustainable,
consisting of subsistence
agriculture and the harvest of fish,
honey and wax from prohibited
waters and forests. The collection
of Tiger Prawn, P monotone seed
for example, entails netting this
larva along with hundreds of other
micro flora and fauna species,
whilst standing in estuarine waters,
and risking attack from saltwater
crocodiles, sharks and tigers. The
prawn seed is retained and the rest
32
discarded. IUCN reports that this
activity alone accounts for 25% of
the mangrove destruction.
The region is home to a diverse
array of flora and fauna including
34 unique mangrove species of
plants and trees. The Indian tiger, P
tigris is an iconic species in the
region along with the saltwater
crocodile, C porosus and the
Gangetic and Irrawady dolphins, P
gangetica and O brevirostris.
Community invasion of forests and
estuarine waters for livelihood
means that mortalities from tiger,
shark and crocodile attacks are a
common occurrence.
The Foundation and NEWS
collaborated to extend livelihood
support to 450 households in four
critical villages - Tridebnagar,
Sonagaon, Mathurakhand and
Dulki. Livestock raising is one of
the few options available to the
locals given the geographic and
supply chain limitations. Cyclone
Aila in 2009 resulted in
catastrophic losses. Insurance
services are not available in the
region Thrift funds based on
livestock incomes were set up in
each village, enabling the
households to replenish stocks
soon after the cyclone.
The project undertook plantation
of mangrove tree species on the
village embankments in an effort
to protect against tidal scouring.
Two-thirds of the plantation
survived and are standing forests
on the village embankments today.
Corporates seeking to create
carbon sinks for obtaining carbon
offsets have shown great interest
in the RBS-FI-NEWS project region.
NEWS has reported plantations on
6000 ha.
Uttarakhand is one such state.
93% of the area is hilly with 63%
of the area under forest cover.
37% of the population lives below
the poverty line and 28% of the
population migrate to other states
in search of employment. With its
beautiful mountains and forests,
Uttarakhand is a tourist hub;
however these revenues fail to
benefit the locals who largely
depend on the forest-based
produce, dairy and agriculture.
l
Alternate income sources have
been generated through
intervention in dairy, agriculture
and honey. Though these are
traditional activities, they are at
subsistence level due to low
production levels and
dependency on local markets.
The projects’ involvement has
seen:
l
Improved methods of managing
dairy, better agricultural
practices and bee keeping;
l
Group-based livelihood
enterprises promoted;
l
Linkages to finance and markets
established, sustaining the
activities following the project
period. Parallel activity of
financial linkages has also
resulted in financial inclusion of
the beneficiaries through
microfinance and bank linkages.
The community is at the centre of
the project, with people from the
target villages proactively involved.
They decide which livelihood
activities to take on at a
commercial level. At the apex level
(producers, shareholders, members
of the producer company and the
MFI), the community governs the
management of the project and
thus ensures operations in a
manner best suited for the
community.
33
ranthambhorenational
kanha&penchtiger
Promotion of Eco-tourism & local handicraft to
protect tigers
Natural Resource Management
Beneficiaries: 200 women, 500 farmers
Project Partner: ACCESS Development Services (ADS)
Beneficiaries: 300 households
Project Partner: Watershed Organisation Trust (WOTR)
The population around the
Ranthambhore National Park are
mainly agriculturists, pastoralists
and wage labourers largely
dependent on natural resources.
The transition of the surrounding
forests from a princely estate to a
designated National Park has
alienated this population from the
mainstream society with curtailed
access to forest resources. This has
pushed them further into poverty.
With limited opportunities, this
population is trapped in poverty
and caught in man-animal
conflicts. The National Park, a
major tourist destination on
account of its famed tiger
population has spawned a
township of resorts and tourist
activities. The community, denied
access into the park for resource
extraction, suffers an exaggerated
sense of alienation coupled with
hostility towards the ecosystem.
This project operates in Kalpi
cluster of Bijadandi block in
Mandala district where the average
annual rainfall is about 1,250 mm.
The entire catchment area feeds
water to Narmada River through
two main drainage systems. This
cluster is mostly laid out over
hilltops covered with deciduous
teak forests where the slope is
gentle with verdant vegetation and
good tree cover. Communities in
these village clusters live mostly
below the poverty line. Agricultural
activities depend on the monsoon
and are already degraded to a large
extent.
park
RBS-FI and ACCESS have worked
together to create alternative
livelihood opportunities for this
local population through
handicraft manufacturing and
34
strengthened the existing mainstay
for livelihoods (agriculture). These
income avenues have reduced the
local pressures on the fragile
ecosystem of the national park
especially for those communities
that have been traditionally
dependent on forests for their
livelihoods.
The women have been provided
with skills on handicrafts - design,
production and packaging - and
the farmers provided with
techniques to enhance and
improve agriculture productivity
and market linkages, thereby,
increasing the average household
income.
reserves, madhya pradesh
plans for village development. The
increase in income enables them
to explore alternative livelihood
through both individual and group
enterprises like nursery, poultry,
piggery, petty shops etc. Moreover,
the additional income has enabled
purchase of pressure cookers and
solar units thereby reducing the
consumption of firewood by ~40%.
The Foundation with WOTR’s
expertise, has invested in
watershed development which
regenerates the local environment
thus enhancing the productive
basis of the local economy; the
impacts have been dramatic
enough to attract reverse and inmigration from nearby areas.
With three years of intervention,
the community is now able to take
two crops in a year, have access to
drinking water and develop micro
35
employeeengagement
“In the last year, significant changes
were brought in. The group came up
with a uniform volunteering policy,
which encouraged a larger number
of employees to volunteer.
The number of volunteering
opportunities too went up.”
Employee Director
RBS Foundation India
Employee volunteering has played
an important role in the various
projects of the foundation, with
employees actively participating in
the baseline or impact assessment
surveys. This has helped both the
foundation and the employees in
understanding and appreciating the
issues around sustainability. The
Foundation actively works towards
creating volunteering opportunities
across the projects so that
employees from various
geographies and business units of
the group are able to come forward
and be a part of the projects. Many
of the volunteers subsequently
continue active work in their sphere
of influence.
In the last year, significant changes
also were brought in. The group
came up with a uniform
volunteering policy, which
encouraged a larger number of
employees to volunteer. The
number of volunteering
opportunities too went up. "Magic
Hands", the training programme on
sustainability became an essential
component of this programme.
"Magic Hands" opportunities
augments the community work that
many of our enthusiastic employees
were already undertaking. Employee
volunteering has become a very
important aspect of the
foundation's projects.
Tushar Lowalekar
36
37
employeespeak
keyinitiatives
The Group employee volunteering
policy allows employees to take up
to three days a year to undertake
community work. Recognising the
remoteness of locations and the
need for continuity of work in
India, the policy allows employees
to take up to four days for
volunteering through the
Foundation’s projects. This policy
enables a supply of resources to
the Foundation’s projects. It
enables transfer of employee
knowledge, engenders compassion
around our community work and
helps build and support teams. In
2010, 196 employees volunteered
at nine locations. In 2010 - 11,
88 employees have volunteered at
six locations and several
volunteering events are in the
pipeline. Employees have shown a
keen interest in volunteering for
projects that are located at the
intersection of community and
biodiversity.
RBS organises the tenth Annual
RBS Sanctuary Asia Wildlife
Awards
On 4 December 2010, RBS
organised the tenth Annual RBS
Sanctuary Asia Wildlife Awards to
honour ‘‘Earth Heroes” - people
who have done remarkable work to
help conserve wildlife in their
respective geographical and
occupational areas. The Wildlife
Award ceremony was organised in
partnership with wildlife
publication Sanctuary Asia.
“Magic Hands at Work was a very comprehensive program. It gave me the rare
opportunity of experiencing rural life, which was in itself an extremely
humbling experience. I realized the importance of things we take for granted
such as water, electricity etc. The afternoon session by the Foundation was
well conducted and gave me insights into the watershed program
implemented in the village. I am also glad to be working for a company that
believes in and supports sustainability through its various community
programs. This trip has motivated me to get involved in community work and
be more responsible towards my environment by conserving electricity and
recycling.”
Rupa Basu
Human Resources, Mumbai
“It was a great opportunity to be a part of such a wonderful trip to Kanha,
which provided a variety of experiences on animal conservation, tribes and
jungle life. This short trip helped me to understand the real challenges of
tribes situated in close proximity of KNP and the issues they face for survival,
especially the Baiga & Gonda communities.”
Ravinder Ray
Property services, Gurgaon
“The RBS Foundation India is providing sustainable income generating
activities and techniques for productivity enhancement. As the popular adage
goes ‘teach a man to fish and you feed him (and his family) for a lifetime...’ To
know that my organisation commits significant resources to this honourable
programme is extremely gratifying“
Raghu Bhat
Retail Banking, Mumbai
38
The 2008 Lifetime Service Award
was bestowed upon Fateh Singh
Rathore for his remarkable work in
the Ranthambore Tiger Reserve.
Awards were also given to five
individuals - inspired wildlifers,
forest employees, researchers and
villagers involved in nature
conservation. They all help protect
the natural resources of India for
generations to come.
Contribution by RBS employees
for Leh-Ladakh Flash floods
On the 5th of August, 2010 Leh
was hit by flash floods. The houses
at Choglamsar, one of the most
affected villages, sank 20 feet in
slick mud; the colourful gates and
prayer wheels of Leh city were
smashed by cars and boulders;
several families could not even
in this campaign on 25th
September, 2010 where they were
given gloves, masks and garbage
bags to carry out clean up on the
beach. Team leaders were assigned
the responsibility to ensure that
each item of waste material found
on the beach was recorded and
recovered correctly.
come out of their homes in time;
bridges were torn away from their
embankments; and some villages
were entirely wiped out.
RBS Foundation India with an NGO,
'Goonj', initiated a campaign to
collect funds for the affected
families of Leh, Ladakh. Eighty
employees of RBS India
contributed INR 400,500 towards
the rehabilitation efforts in Leh.
Others donated warm clothes,
blankets and utensils. The cash
donation was given to provide
skills training to the refugee
women of Choglamsar and
collected items were given to
'Goonj' which in turn gave them to
those living in the camps and in
the affected areas of around Leh.
Ocean clean up – Mumbai
Juhu Beach is part of the global
Ocean Cleanup campaign that
takes place every year. Twenty six
RBS India employees participated
These RBS India volunteers filled
garbage bags with plastic packets,
tobacco packages, drinking straws,
spoons and glasses, pieces of
glass, beverage bottles, cigarette
stubs, building material, food
wrappers, tiles, clay items like
Ganesha idol pieces, shoes and
items of clothing, all of which were
found in plenty.
This initiative made our employees
more conscious of their
environment as they did their bit
to ease the tremendous pressure
put on it. As the saying goes – each
drop makes an ocean, an ocean
with clean beaches to visit with
39
employeeengagement
family and friends. Employees of
RBS India are doing their bit for
this good cause.
Newspapers for Leprosy
Brief details about volunteering
activities held in 2009-10 and
2010-11
Magic Hands training in
Ranthmabore
A three day training programme
was scheduled in Ranthambore
to sensitize employees with
issues of biodiversity, climate
change and poverty alleviation.
45 employees from Gurgaon and
Mumbai attended this training.
Bandhavgarh
Twelve employees of RBS
volunteered with local NGOs to
conduct a baseline survey. The
objective was to study, analyze
livelihood context of households
of the fringe villages to develop
project intervention framework.
The survey covered 8 villages of
Bandhavgarh Tiger reserve
covering 417 households.
Kanha
Globally , India tops the list for the
highest number of Leprosy
patients. There are close to 1.5
million leprosy patients in India,
who are still regarded as social
outcasts and face numerous
hardships for survival and cure.
Bombay Leprosy Project (BLP), a
not for profit organization was
established in 1976 to cure and
rehabilitate leprosy patients. In
support of their mission, RBS
donates news papers and
magazines collected from its
various offices in Mumbai. Up until
Sep 2011, approximately 7,814 kg
of news papers amounting to INR
67,000 have been donated. These
funds were utilized to provide
ulcer care kits , medicines and
special footwear for the patients.
40
Magic Hands training, Chennai
RBS Foundation with HR Learning
and Development team
scheduled a Magic Hands
training programme in Chennai.
75 participants from RBS
Business Services - Chennai
nominated themselves for Magic
Hands and were taken through
the challenges of Supporting
Enterprises, the complexities of
Biodiversity Conservation, the
threats of Climate Change and
the opportunities offered by RBS
Community Investment schemes.
Meera H Sanyal, Country Head India, an active member of the
training, launched the event Ron
Teerlink, Chief Administrative
Officer - RBS Group with his
MANCO and William Higgins,
Director - Group Operations.
Fifteen employees volunteered
to conduct a socio-economic
survey of villages in and around
Kanha National park. This
baseline survey was carried out
to understand the economic and
social condition of the
households and design an
implementation plan accordingly.
Ranthambore Impact assessment
STRIPES, a project of the
RBS Foundation in Ranthambore
looks at livelihood intervention.
At the onset of the project a
baseline survey was conducted
and a year later an impact
assessment was done to
understand the changes post
intervention. 21 employees from
Mumbai and Gurgaon
participated in this impact
assessment. This three day
volunteering activity provided an
opportunity to the employees to
meet villagers in their homes,
farms and to understand their
problems first hand.
Ranthambore (RTR)
In 2010 Foundation initiated a
Teach conservation program
among the schools in the fringes
of Ranthambore Tiger Reserve
(RTR) in response to a need
expressed at the park for a better
41
42
43
structure&management
As a natural association with the Bank, the culture of strong risk management is inculcated within the Foundation
as well. We use structured and tested tools for objective project appraisal, gated funding for control and the active
involvement of senior management. The table below details the risk management process of the Foundation.
Board of Directors
RBS Foundation India
PROCESS
Meera H Sanyal
Chairperson
Tushar Lowalekar
Employee Director
N Sunil Kumar
Chief Executive
The Executive Body:
Management Team of
RBS Foundation India
N Sunil Kumar
Chief Executive
Neeraj Sharma
Program Director
Dhruvi Shah
Senior Project Manager,
Livelihoods
44
risk&control
Karishma Kalro
Project Assistant
Yashu Chaudhury
Project Manager,
Financial Literacy
& Financial Inclusion
Sweta Asawa
Project Manager,
Employee Programs
& Compliance
GRANT PROCESS / MECHANISM
Origination and
pre-appraisal
Proposals for the livelihood programmes are typically sent in by NGOs. For the TA programme
third party recommendations originate the partner. The responsible Project Manager prepares
a pre-appraisal based on secondary documentation and submits to the Foundation Board for
sign off.
Due diligence
The Project Manager visits the NGO to understand the project and employs a Microenterprise
Evaluation tool or a Rapid Institutional Assessment tool to determine if the NGO and / or the
project is sustainable, benefiting the poor and committed.
Proposal approval
The Project Manager prepares a final evaluation report with risk, challenges and impact.
This is first discussed internally within the team, subsequent to which it is presented to
the Foundation Board for final sign off.
Documentation and
regulatory clearances
(if applicable)
An agreement is signed between the Foundation and the NGO. The agreement clearly lays out
the scope of work, milestones, the fund tranches as well as reporting requirements.
Disbursal
Funds are typically released in quarterly tranches and amount for each tranche is determined
in agreement with the NGO so that it is synchronised with project activities. Prior to release of
each tranche, the NGO is required to submit a utilisation certificate. If required the Project
Manager or a volunteer from the Bank may visit to verify the report.
Monitoring
This is an ongoing activity and multiple means are adopted to maintain control of the project.
This includes:
- Quarterly / monthly project progress reports
- CA certified fund utilisation reports prior to disbursement of each new tranche.
- Random employee volunteering visits to verify progress
- Regular Project Manager visits
- Setting up Project Implementation & Management Committees as a grassroots monitor.
Reviews of
individual cases
In cases where there is a deviation or delay in performance and / or use of funds, the Project
Manager prepares a variance report and the proposed action plan. In such circumstances it is at
the discretion of the Foundation to terminate the project if there has been a misuse of funds.
Periodic Review
of portfolio
The team has both monthly and quarterly reviews of the overall grant portfolio.
- Internally, a monthly MIS and financial statement allows the team to review project progress.
- Quarterly, the RBS Foundation India management team is required to present financial and
narrative updates on all projects to the Board
45
auditor’sreport
1 We have audited the attached
Balance Sheet of RBS Foundation
India ("the Company") as at 31st
March, 2011 and the Income and
Expenditure Account of the
Company for the year ended on
that date, annexed thereto. These
financial statements are the
responsibility of the Company’s
Management. Our responsibility is
to express an opinion on these
financial statements based on our
audit.
2 We conducted our audit in
accordance with the auditing
standards generally accepted in
India. These standards require that
we plan and perform the audit to
obtain reasonable assurance about
whether the financial statements
are free of material misstatements.
An audit includes examining, on
test basis, evidences supporting
the amounts and disclosures in the
financial statements. An audit also
includes assessing the accounting
principles used and significant
estimates made by the
Management as well as evaluating
the overall financial statement
presentation. We believe our audit
provides a reasonable basis for our
opinion.
3 The companies (Auditor’s Report)
Order, 2003 (CARO) issued by the
Central Government in terms of
Section 227 (4A) of the Companies
Act, 1956 is not applicable to the
company in terms of clause 1 (2)
(iii) of the order.
4 We report as follows:
(a) we have obtained all
46
information and
explanations which to the
best of our knowledge and
belief were necessary for
the purpose of our audit;
(b) in our opinion, proper
books of accounts as
required by law have been
kept by the Company so far
as it appears from our
examination of those books;
(c) the Balance Sheet, the
Income & Expenditure
Account dealt with by this
report are in agreement
with the books of account;
(d) in our opinion, the Balance
Sheet, the Income and
Expenditure Account dealt
with by this report are in
compliance with Accounting
Standards referred to in
Section 211 (3c) of the
Companies Act, 1956;
(e) in our opinion and to the
best of our information and
according to explanations
given to us, said accounts
give information required
by the Companies Act, 1956
in the manner so required
and give a true and fair view
in conformity with the
accounting principles
generally accepted in India;
(i) in the case of the Balance
Sheet, of the state of affairs
of the Company as at 31st
March, 2011;
(ii) in the case of the Income
and Expenditure Account, of
auditedfinancial
statements
the excess of the income
over expenditure of the
Company for the year
ended on that date.
5 On the basis of written
representations received from the
Directors, as on 31st March, 2011
taken on record by the Board of
Directors, none of the Directors is
disqualified as on 31st March,
2011 from being appointed as a
director in terms of Section
274(1)(g) of the Companies Act,
1956.
01 April 2010 to 31 March 2011
Balance sheet as at 31 March 2011
Schedule
number
` As at
31 March 2011
` As at
31 March 2010
Share capital
1
45,000
45,000
Reserves and surplus
2
30,794,747
19,207,852
30,839,747
19,252,852
205,608,858
178,460,694
2,004,993
919,624
20,927,309
5,069,424
228,541,160
184,449,742
197,701,413
165,196,890
Net Current Assets (A-B)
30,839,747
19,252,852
Total
30,839,747
19,252,852
Sources of funds
Shareholders' Funds
Total
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117365W)
Application of funds
Sd/-
Cash and Bank Balances
Z. F. Billimoria
Partner
Interest accrued on Bank Fixed Deposits
Current Assets, Loans &
Advances (A)
Loans & Advances
3
4
(Membership No. 42791)
Mumbai, 10th August, 2011
Current Liabilities (B)
Notes to and forming part of
the Accounts
In terms of our report attached
For Deloitte Haskins & Sells
Chartered Accountants
Sd/Z. F. Billimoria
Partner
Place: Mumbai
Date: 10th August 2011
5
6
For and on behalf of the Board of Directors of
RBS Foundation India
Sd/N. Sunil Kumar
Director
Sd/Tushar Lowalekar
Director
Sd/Meera H. Sanyal
Director
47
Income & Expenditure account for the year ended 31 March 2011
Schedule
number
Income
Year ended
31 March 2011
(`)
9,590,519
Schedules forming part of the Balance Sheet as at 31 March 2011
Year ended
31 Mar 2010
(`)
8,350,074
` As at
31 March 2011
` As at
31 March 2010
100,000
100,000
100,000
100,000
45,000
45,000
45,000
45,000
Opening Balance
19,207,852
13,634,013
Excess of Income over Expenditure during the year
11,586,895
5,573,839
30,794,747
19,207,852
- In Deposit Account
204,852,000
170,859,879
- In Current Account
756,858
7,600,815
205,608,858
178,460,694
-
816,031
5,320,409
4,253,393
15,606,900
-
20,927,309
5,069,424
Schedule 1: Share Capital
Authorised
Interest on Fixed Deposit
[Tax Deducted at Source ` 10,67,016/(Previous year ` 11,75,692/- )]
10,000 Equity shares of Rs.10 each
Admininstrative Expenses written back
Total
2,693,841
-
12,284,360
8,350,074
Issued, Subscribed and Paid Up
4,500 Equity shares of Rs.10 each fully paid up
Expenditure
Administrative Expenses
Refer note 5
Professional Fees
Bank Charges
Auditors' Remuneration
Refer note 7
Sub total
Less: Grants Received
Refer note 6
Total
Excess of income over expenditure
7,099,776
9,733,841
613,432
32,394
756
-
83,277
50,000
7,797,241
9,816,235
7,099,776
7,040,000
697,465
2,776,235
11,586,895
5,573,839
2,575
2,572
Schedule 2: Reserves and Surplus
Income & Expenditure Account
Schedule 3: Cash & Bank Balances
Balances with a Scheduled Bank
Basic/diluted earnings per share [Nominal
Value / share ` 10/- (Previous Year ` 10/-)]
Refer note 3
Notes to and forming part of the Accounts
6
Schedule 4: Loans & Advances
(Unsecured, Considered good)
Advance Recoverable in Cash or in kind or value
to be received
In terms of our report attached
For Deloitte Haskins & Sells
Chartered Accountants
Sd/Z. F. Billimoria
Partner
Place: Mumbai
Date: 10th August 2011
48
Tax Deducted at Source
For and on behalf of the Board of Directors of
RBS Foundation India
Sd/N. Sunil Kumar
Director
Sd/Tushar Lowalekar
Director
Sd/Meera H. Sanyal
Director
Income Tax (AY 2008 - 09)
(Refer Note 8)
49
Schedules forming part of the Balance Sheet as at 31 March 2011
` As at
31 March 2011
continued from previous page -
` As at
31 March 2010
` As at
31 March 2011
Schedule 5: Current Liabilities
Sundry Creditors
Grants
Payable to RBS N.V.
AAF Grant 2006 - 08
82,132,050
112,018,463
Less: Utilised
21,682,152
RBS Fund 2009
72,774,008
88,000,000
Less: Utilised
31,983,828
8,185,992
60,449,898
29,886,413
1,099,776
9,733,841
75,577
45,000
7,135
7,135
-
6
Pramod S Shah & Associates
139,500
-
KPMG
279,000
Deloitte Haskins & Sells
82,132,050
RBS Business Service Pvt. Ltd.
EV Bandhavgarh
Less: Utilised for Administrative Expense
-
RBS Fund 2010
-
-
Add: Receipt
106,183,350
-
Less: Utilised
4,424,453
-
Less: Utilised for Administrative Expense
7,099,776
40,790,180
94,659,121
7,040,000
-
352,824
2,930,352
Add: Receipt
1,433,031
-
Less: Utilised
1,785,855
GAYE Fund
-
2,577,528
72,774,008
` As at
31 March 2010
1,600,988
-
9,785,982
[(Other than Micro Small & Medium Entreprises)
(Refer Note 5 & 10)]
Other Liabilities
TDS payable
-
54,993
5,793
197,701,413
165,196,890
352,824
Support Gurukul
Add: Receipt
6,900
Less: Utilised
6,900
Supergrounds
-
146,233
-
-
1,059,640
-
146,233
913,407
146,233
Employee Volunteering
657,121
-
-
-
Less: Utilised
657,121
-
-
-
Employee Donation
400,523
-
-
-
Less: Utilised
400,523
-
-
-
Less: Utilised
196,045,432
50
155,405,115
51
Schedule 6: Notes to and forming part of the Accounts
1 Background Information
RBS Foundation India (Formerly
ABN AMRO Foundation India) ("the
Company") was incorporated on
17th February 2007.The Company
has been registered under section
25 of the Companies Act, 1956
with effect from 19 January, 2007.
The Company has also procured
the approval of the Ministry of
Home Affairs, required under the
Foreign Currency Regulation Act,
1976 for receiving foreign grants
from RBS Group Communication,
UK of GBP 2.7 million. The
Company has received 2.68 million
GBP till date out of GBP 2.7 million
granted. The Company provides
grants for development of
infrastructure, promoting
sustainable livelihood activities,
vocational, entrepreneurial and
skill enhancement training, social
intermediation, providing health
care, functional literacy and
technical assistance and any other
activity that contributes to the
poverty alleviation of poor living in
undeserved / backward areas and
not for profit.
2 Statement of Significant
Accounting Policies
a. Basis of preparation
The financial statements have
52
been prepared to comply in all
material respects in accordance
with the Accounting Standards
notified under the Companies
(Accounting Standards) Rules,
2006 and the relevant
provisions of the Companies
Act, 1956. The financial
statements have been prepared
under the historical cost
convention on an accrual basis.
The accounting policies have
been consistently applied by
the Company.
b. Use of Estimates
The preparation of financial
statements in conformity with
generally accepted accounting
principles requires the
Management to make estimates
and assumptions that effect the
reported amounts of asset and
liabilities and disclosure of
contingent liabilities at the
date of financial statement and
the result of the operations
during the reporting period
end. Although the estimates are
based upon the Management's
best knowledge of current
events and actions, actual
results could differ from these
estimates.
c. Revenue recognition
Interest
Interest income is recognized
on a time proportion basis
taking into account amount
outstanding and rate
applicable.
d. Foreign currency transaction
(i) Initial Recognition
Foreign currency transactions
are recorded in the reporting
currency, by applying to the
foreign currency amount the
exchange rate between the
reporting currency and the
foreign currency at the date
of the transaction.
(ii) Conversion
Foreign currency monetary
items are reported using the
closing rate.
(iii) Exchange differences
Exchange differences arising
on the settlement of
monetary items or on
reporting Company’s
monetary items at rates
different from those at which
they were initially recorded
during the year, are
recognized as income or as
expense in the year in which
they arise.
e. Income taxes
The Company has been granted
exemption from Income tax
under Section 12AA(1)(b)(i) of
the Income Tax Act, 1961.
3 Earnings per Share
In accordance with the Accounting Standard on "Earnings Per Share" (AS-20) notified under the Companies
(Accounting Standards) Rules, 2006.
Current year `
Particulars
Previous year `
11,586,895
5,573,839
Weighted average number of Equity shares outstanding
4,500
2,167
Earnings per Share (Basic and Diluted) [A/B]
2,575
2,572
Excess of Income over Expenditure during the Year
4 Related Party Disclosure
Name of Related Party:
RBS PLC
Nature of transactions: Grant recieved
Relation:
2010 - 11:
2009 - 10:
Parent
107,615,556
91,989,992
5 Administrative Expenses
The Company has accrued
Rs.7,099,776 during the current
year to RBS N.V., India ("The bank")
for services rendered by the bank
in nature of infrastructure support
services, including cost of
premises, cost of human resources
and other transaction processing
related costs incurred on managing
the dealings of the Company.
amounted to Rs.8,494,668 can be
utilised for overhead costs.
Accordingly during the Current
Year the Company has utilised
7,099,776 for its Administrative
and Other Expenses.
7 Auditor's Remuneration
Particulars
Statutory audit fees
Out of pocket expenses
Service tax
Total
2010 - 11
2009 - 10
75,000
50,000
500
500
7,777
5,201
83,277
55,701
6 As per the “AAF 2007-11”
Agreement, dated 1st November,
2007, 8% of the grants received
under this agreement, which
53
Schedule 6: Notes to and forming part of the Accounts
8 The Company has received
during the year an order from the
Income Tax Department
contending that it has spent the
money received as grants in the
name of alleviation of poverty, etc.
for building a market share for RBS
N.V. - Indian Branches Micro
Finance Business and accordingly
denied it the exemption claimed
under section 11 of the Income Tax
Act, 1961 and raised a demand of
`78,030,489. Consequently, the
company has filed an appeal with
the Commissioner of Income Tax
and paid an amount of
`15,606,900 under protest,
pending resolution of appeal.
Subsequently to the year end, the
Commissioner of Income Tax has
ruled appeal in favour of the
Company and hence the company
currently doesn’t have any liability.
9 The Company has no employees
and thus no disclosure is required
under the Accounting Standard on
"Employee Benefits" (AS-15)
notified under the Companies
(Accounting Standards) Rules,
2006.
10 The Company has initiated the
process of identification of
'suppliers' registered under " The
Micro, Small and Medium
Enterprises Development Act,
2006" (MSMED Act) by obtaining
confirmation from suppliers. Based
on the intimation received by the
Company, none of the suppliers
have confirmed to be registered
under the MSMED Act, 2006.
Accordingly, no disclosures relating
to amounts unpaid as at end year
together with the interest paid /
payable are required to furnished.
projectpartners
CPSW
11 The Company is Small and
Medium sized company (SMC) as
defined in the General Instructions
in respect of Accounting Standards
notified under the Companies Act,
1956. Accordingly the Company
has compiled with the Accounting
Standards as applicable to SMCs.
12 Previous Year Comparatives
Previous year's figures have been
regrouped & rearranged , wherever
necessary.
For and on behalf of the Board of Directors of
RBS Foundation India
Sd/N. Sunil Kumar
Director
54
Sd/Tushar Lowalekar
Director
Sd/Meera H. Sanyal
Director
55
acknowledgements
A special thanks to all our project partners
and employees of the RBS Group, for their
inputs, inspiration and co-operation.
concept&design
Ahead Communications
RBS Foundation India
editing
RBS Foundation India
Fiona Gibson
Head, Marketing and Communications, SE Asia, RBS
printing
Tag: Worldwide India
photographs
Project Partners
RBS Foundation India
56
57