133

The Credit Rating Agency of Bangladesh Limited (CRAB) has affirmed the credit rating of SAJIDA Foundation with an “AA3” (Double A Three) rating in the long term and “ST-2” rating in the short term. CRAB performed the rating based on audited financial statements up to June 30, 2017 and other relevant quantitative and qualitative information. Microfinance Institutions (MFIs) rated “AA3” have very strong capacity to meet their financial commitments.

The summary of SAJIDA’s ratings, dating 31st December 2017 and valid till 31st December 2018 is as follows:

CREDIT RATING

DefinitionStrong capacity & High quality, MFIs rated ‘AA3’ have strong capacity to meet their financial commitments but are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than MFIs in higher-rated categories. ‘AA3’ is judged to be high quality and are subject to low credit risk.

ST-2: MFls rated in category are considered to have strong capacity for timely repayment. MFls rated in this category are characterized with commendable positing in terms of liquidity, internal fund generation and access to alternative sources of funds.

2018

Long Term AA3

Short TermST- 2

2017

Long Term AA3

Short TermST- 2

126

135

SAJIDA Foundation

(Registered in Bangladesh under the Societies Registration Act, 1860)

Auditor’s Report and Audited Financial Statements

for the year ended 30 June 2018

BDBL Bhaban (Level-13), 12 Kawran Bazar Commercial Area, Dhaka-1215, BangladeshTel: (+88-02) 410 20030 to 35, 8144347 to 52, Fax: (+88-02) 8144353

Dhaka Extension Of�ce: T.K. Bhaban (Level-9), Kawran Bazar C/A, Dhaka-1215Tel: (+88-02) 818 9428 to 29, E- mail: <acnabin@bangla.net>, Web: www.acnabin.com

Branch OfficeJahan Building No.7 (1st Fl), 59 Agrabad Commercial Area, Chittagong-4100, Bangladesh

Tel: (+88-031) 2517352, Fax: (+88-031) 2517353, E- mail: <acnabin.ctg@acnabin-bd.com>

135

SAJIDA Foundation

(Registered in Bangladesh under the Societies Registration Act, 1860)

Auditor’s Report and Audited Financial Statements

for the year ended 30 June 2018

BDBL Bhaban (Level-13), 12 Kawran Bazar Commercial Area, Dhaka-1215, BangladeshTel: (+88-02) 410 20030 to 35, 8144347 to 52, Fax: (+88-02) 8144353

Dhaka Extension Of�ce: T.K. Bhaban (Level-9), Kawran Bazar C/A, Dhaka-1215Tel: (+88-02) 818 9428 to 29, E- mail: <acnabin@bangla.net>, Web: www.acnabin.com

Branch OfficeJahan Building No.7 (1st Fl), 59 Agrabad Commercial Area, Chittagong-4100, Bangladesh

Tel: (+88-031) 2517352, Fax: (+88-031) 2517353, E- mail: <acnabin.ctg@acnabin-bd.com>

136

CONTENTS

Sl. No. Particulars Page No.

1 Auditor’s Report 137

2 Statement of Financial Position 138

3 Statement of Comprehensive Income 139

4 Statement of Cash Flows 140

5 Statement of Changes in Equity 141

6 Notes to the Financial Statements 142

7 Schedule of Property, Plant & Equipment (Annexure-A) 162

8 Segment Statement of Financial Position (Annexure-B) 163

9 Segment Statement of Comprehensive Income (Annexure-C) 166

10 Statement of Schedule of Donation Received (Annexure-D) 169

137

INDEPENDENT AUDITOR’S REPORT

The Members of General Body

SAJIDA FoundationOTOBI Center, 5th Floor, Plot 12, Block CWS (C)Gulshan South Avenue, Gulshan-1Dhaka-1212

Report on the Financial StatementsWe have audited the accompanying �nancial statements of SAJIDA Foundation which comprise the statement of �nancial position as at 30 June 2018, and the statement of comprehensive income, statement of cash �ows for the year then ended and a summary of signi�cant accounting policies and other explanatory information.

Management’s Responsibilities for the Financial StatementsManagement of SAJIDA Foundation is responsible for the preparation and fair presentation of these �nancial statements in accordance with Bangladesh Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of �nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these �nancial statements based on our audit. We conducted our audit in accordance with the Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the �nancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the �nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the �nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the �nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the �nancial statements.

We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our opinion.

Auditor’s OpinionIn our opinion, the �nancial statements give a true and fair view of the Financial Position of SAJIDA Foundation as at 30 June 2018 and of its �nancial performance and its cash �ows for the year then ended and comply with the applicable laws and regulations.

ACNABINChartered Accountants

Dated, Dhaka 01 October 2018

137

INDEPENDENT AUDITOR’S REPORT

The Members of General Body

SAJIDA FoundationOTOBI Center, 5th Floor, Plot 12, Block CWS (C)Gulshan South Avenue, Gulshan-1Dhaka-1212

Report on the Financial StatementsWe have audited the accompanying �nancial statements of SAJIDA Foundation which comprise the statement of �nancial position as at 30 June 2018, and the statement of comprehensive income, statement of cash �ows for the year then ended and a summary of signi�cant accounting policies and other explanatory information.

Management’s Responsibilities for the Financial StatementsManagement of SAJIDA Foundation is responsible for the preparation and fair presentation of these �nancial statements in accordance with Bangladesh Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of �nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these �nancial statements based on our audit. We conducted our audit in accordance with the Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the �nancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the �nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the �nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the �nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the �nancial statements.

We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our opinion.

Auditor’s OpinionIn our opinion, the �nancial statements give a true and fair view of the Financial Position of SAJIDA Foundation as at 30 June 2018 and of its �nancial performance and its cash �ows for the year then ended and comply with the applicable laws and regulations.

ACNABINChartered Accountants

Dated, Dhaka 01 October 2018

138

Chairperson, Governing BodySAJIDA Foundation

Director (Finance & Accounts) SAJIDA Foundation

Executive DirectorSAJIDA Foundation

This is the Statement of Financial Position referred to in our separate report of even date.

Dated, Dhaka 01 October 2018

SAJIDA Foundation(Registered in Bangladesh under the Societies Registration Act, 1860)

Statement of Financial Positionas at 30 June 2018

Notes Amount in Taka 30.06.2018 30.06.2017Property and Assets Non-Current Assets 597,524,062 501,094,732Property, plant and equipment 5 369,444,161 349,266,237Capital work in progress (Buildings) 6 154,704,040 105,462,900Deferred expenditure 7 14,478,927 3,630,770Investment in related undertaking 8 48,204,268 32,546,389Investment in Securities and Others 9 10,692,666 10,188,437 Current assets 13,102,489,237 8,547,647,718Loan to members 10 11,855,466,311 7,492,562,311Short Term Investment 11 535,172,724 715,655,561Grants and accounts receivables 12 16,964,143 19,792,472Advance, deposits and prepayments 13 59,635,615 62,492,222Advance income tax 14 140,871,448 104,696,254Staff loans and Advance 15 114,920,726 56,597,917Inventories 16 6,006,531 5,533,886Cash and cash equivalents 17 373,451,737 90,317,095Total Property and Assets 13,700,013,298 9,048,742,451 Funds & Liabilities Funds 2,481,789,109 1,904,480,678Capital fund 18 2,327,829,344 1,776,533,231Reserve fund and others 19 153,959,765 127,947,447

Non Current Liabilities 4,345,308,942 3,349,846,428Term loans 20 977,333,330 826,500,000Deferred income 21 5,730,889 5,094,886Loan loss provision 22 339,762,084 151,227,851Member savings deposits 23 3,022,482,639 2,367,023,691

Current Liabilities 6,872,915,247 3,794,415,344Short Term loans 24 6,707,694,066 3,688,356,935Grants received in advance 25 37,039,202 16,121,969Other current liabilities 26 128,181,978 89,936,440

Total Funds & Liabilities 13,700,013,298 9,048,742,451

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

ACNABINChartered Accountants

139

SAJIDA Foundation(Registered in Bangladesh under the Societies Registration Act, 1860)

Statement of Comprehensive Income for the year ended 30 June 2018

Notes Amount in Taka 2017-2018 2016-2017INCOME Income from Micro�nance 27 2,312,155,817 1,438,977,703Donor grants 28 124,429,357 71,065,458Income from investment 29 279,594,316 353,781,337Income from bank interest (STD & FDR) 32,435,599 34,709,546Income from Social Enterprise 23,955,522 121,705,809Income from community contribution 1,220,298 955,217 2,873,790,909 2,021,195,070

EXPENDITURE

Micro�nance Program 1,968,069,981 1,204,580,579Social Enterprises 127,151,900 126,549,876SAJIDA Own Funded Program 90,627,831 53,289,536Education program 2,275,807 1,962,913Amrao Manush program 47,437,837 25,801,916Wash program 29,576,057 16,891,269Health Awareness program 4,654,843 2,851,969Other Development Project 29,732,391 20,002,306 2,299,526,647 1,451,930,365Net surplus for the year 574,264,262 569,264,705 2,873,790,909 2,021,195,070 The annexed notes form an integral part of this Statement of Financial Position.

Chairperson, Governing BodySAJIDA Foundation

Director (Finance & Accounts) SAJIDA Foundation

Executive DirectorSAJIDA Foundation

ACNABINChartered Accountants

This is the Statement of Financial Position referred to in our separate report of even date.

Dated, Dhaka 01 October 2018

139

SAJIDA Foundation(Registered in Bangladesh under the Societies Registration Act, 1860)

Statement of Comprehensive Income for the year ended 30 June 2018

Notes Amount in Taka 2017-2018 2016-2017INCOME Income from Micro�nance 27 2,312,155,817 1,438,977,703Donor grants 28 124,429,357 71,065,458Income from investment 29 279,594,316 353,781,337Income from bank interest (STD & FDR) 32,435,599 34,709,546Income from Social Enterprise 23,955,522 121,705,809Income from community contribution 1,220,298 955,217 2,873,790,909 2,021,195,070

EXPENDITURE

Micro�nance Program 1,968,069,981 1,204,580,579Social Enterprises 127,151,900 126,549,876SAJIDA Own Funded Program 90,627,831 53,289,536Education program 2,275,807 1,962,913Amrao Manush program 47,437,837 25,801,916Wash program 29,576,057 16,891,269Health Awareness program 4,654,843 2,851,969Other Development Project 29,732,391 20,002,306 2,299,526,647 1,451,930,365Net surplus for the year 574,264,262 569,264,705 2,873,790,909 2,021,195,070 The annexed notes form an integral part of this Statement of Financial Position.

Chairperson, Governing BodySAJIDA Foundation

Director (Finance & Accounts) SAJIDA Foundation

Executive DirectorSAJIDA Foundation

ACNABINChartered Accountants

This is the Statement of Financial Position referred to in our separate report of even date.

Dated, Dhaka 01 October 2018