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E #¥E%D¥cc€9N.TANTs
Telephone :235650652356506823565073
Fax : 23565076
INDHPENDENT AUDITOR' S REPORT
TO,
The Members of Governing Body of
Swasti
Bangalore
1. Report on theFinancial statements
We have audited the accompanying Financial Statements of Swasti Ororeign
Contribution Account), No 19, 1st Main, 1St Cross, Ashwathnagar, Bangalore-560 094 which comprise the Balance Sheet as at 31St March, 2016, the Statement
of Income & Expenditure for the year then ended, the Receipts and Payments
Account for the year then ended and a summary of significant accounting policies
and other explanatory information.
2. Management's Responsibility for the Financial statements
Management is responsible for the preparation of these Financial Statements that
give a true and fair view of the financial position, This responsibility includes the
design, implementation and maintenance of intemal control relevant to the
preparation and presentation of the financial statements that give a true and fair
view and are free from material mis-statement, whether due to fraud or error.
3. Auditor's Responsibility
3.1 Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with the
standards on auditing issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material mis-statement.
2nd Floor ,No . 63/2.Railway Parallel Road.Kumara Park West.Bengaluru -560 020
ussly a CO. Continuation Sheet
3.2 An audit involves performing procedures to obtain audit evidence about the
amounts and disclosure in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Institution's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the appropriateness
of accounting principles used and reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the fmancial statements.
3.3 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion.
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance sheet, of the state of the institution as at 3Ist
March 2016; and
(b) in the case of the statement of Income & Expenditure, of the Excess of
Income over Expenditure for the year ended on that date.
(c) in the case of Receipts and payment Accounts, of the cash flows for the
year ended on that date
5. 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.
6. In our opinion, proper books of accounts have been maintained by the said
organization as required by law so far as it appears from our examination of those
books.
ussly & CO.
7.
Continuation Sheet
The Balance Sheet, Income and Expenditure Account and Receipts and Payments
Account dealt with by this report are in agreement with the books of accounts;
In our opinion, the Balance Sheet, the Income and Expenditure Account and
Receipts and Payments Account comply with the Accounting Standards issued by
the Institute of Chartered accountants of India.
For MSSV & Co,
Membership No. 25087
Place: BangaloreDate : 24th September, 2016
SWASTIForeign Contribution Section
No.19, 1st Main, 1st Cross, Ashwathnagar, Bangalore-94.
SIGNIFICANT ACCOUNTINGPOLICIES FORMING PART OF FINANCIAL STATEMENTS
BASIS OF PREPARATION:
The society follows accrunl method of accounting. Accounts have been prepared on going
concern basis under historical cost convention. The preparation of financial statements requires
the organization to make estimates and assumptions that affects the figures reported in financial
statements.The actual results could differ from these estimates.
2. FUND ACCOUNTING:
The organisation has followed the principle of having separate funds for each of the program
focus areas. Funds available under each program area are classified into three Categories pursuant
to donor imposed restrictions, organisational policies & applicable law - Restricted Funds,
Designated Funds and Uurestricted Funds.
2.1 Restricted Funds
Restricted fundsare funds whose use has been limited by donors or applicable law to a
specific time period and/or for a specific purpose. As & when the restrictions are
satisfied, funds to that extent are transferred to Income & Expenditure Account in case of
revenue expenditure and capital expenditure.
2.2 Designated Funds-
These are uurestricted funds set aside by the Governing Body for specific purposes and to
meet future needs of the present commitments.
2.2.1 Staff welfare Fund: These are the funds set aside by the governing body to
provide for welfare measures of the employees of the organization.
2.3 GeneralFunds-
These are unconditional expendable funds available for use at the discretion of Governing
Body for furtherance of the Organization's objectives. These funds are neither restricted by
unutilized donations are credited to General Fund. Suaplus or deficit arising out of the
operations in each of the Program Focus Areas is adjusted against the respective general
fund. It is assumed that at times fluctuations will occur in projected income and
expenditure; which camot be fully anticipated during the planning process. In the light of
such circumstances, it is the policy of the Organization to maintain a prudent level of
General Fund to provide stability and flexibility.
3.
4.
5.
REVENUE RECOGNITION :
3.1 All the incomes are recognized when Organization is legally entitled to collect it and
amount can be quantified with reasonable accuracy, on an accrual basis.
3.2 Interest on deployment of funds is recognized using the time proportion method, based on
the underlying interest rates.
3.3 General contribution includes unspecified donations received in cash or kind.
3.4 Earmarked Funds received towards recurent expenditure are credited to specific income
accounts to the extent restrictions are satisfied.
FOREIGN EXCIIANGE TRANSACTION:
Transactions denominated in foreign currency are converted to Indian rupees and recorded as per
the exchange rates prevalent on the date of transaction. All foreign currency denominated
monetary assets and liabilities are translated at the exchange rates prevailing on the balance sheet
date. The resultant net Exchange differences are recognized in the Income and expenditure
account.
INVESTMENTS:
Investments are made in accordance with provisions under Section 11 of Income Tax Act.
Investments of all the funds are pooled together. Each participating fund enters & withdraws from
the pool based on fund movement. Investments are stated at cost.
ACCOUNTING 0F LEASE:
Leases where the lessor effectively retains substantially all the risks and benefits of the ownership
over the lease term are classified as operating lease. Operating lease payments are recognized as
expenses in the statement of Income and Expenditure.
TAXATION:
The Organization is registered under Section 12AA(1)(b)(i) of Income Tax Act 1961vide letter
No.DIT(E)/12AIVOL.III/S-1453/W-2/2004-05 dt.8/2/2005 of Director Income Tax (Exemptions)
and as such is exempt from taxation of its income and gains.The income is Exempt subject to
conditions specified under Section 11 and 13 of the Income tax Act.
SWASTI
Foreign Contribution Section
No. 19, 1st Main, 1st Cross, Ashwath Nagar, Bangalore -560 094
Balance Sheet
Particulars NoteAmount in Amount in
Rupees RupeesAs at 31 Mar 16 As at 31 Mar 15
SOURCES OF FUNDS:
1334 81,075,17915,618,2612,189,600 64,322,8425,658,2462,183,430Rrestricted Fund±Earmarked Funds
unrestricted FundsGeneral Fund
Desianated Funds=Earmarked Funds
TotalAPPLICATIONOFFUNDS: 98,883,040 72,164,518
22,337,015 19,888,116Fixed AssetsInvestments
Current Assets, Loans and Advances 5 93,832,140 65,678,123
Total Assets (A) 93,832,140 65,678,123
Current liabilities and Provisions 6 17,286,116 13,401,721
Total Liabilities (a) 17,286,116 13,401,721
Net Assets (A) -(a) 76,546,025 52,276,402
Total 98,883,040 72,164,518
Significant Accounting Policies, Notes referred to above form an integral part of Balance
SWASTI
Foreign Contribution Section
No. 19, 1st Main, 1st Cross, Ashwath Nagar, Bangalore -560 094
Statement of lncome and Expenditure
Particulars NoteAmount in Rupees Amount in Rupees
For the year ended For the year ended31 Mar 2016 31 Mar 2015
Income:
78 238,791,3767,015,909 147,518,6198,595,205RestrictedEarmarked Funds
UnrestrictedInterest incomeOther Income 9710 1,014,311 2,889,934
Total Income 246,821,596 159,003,758
218,356,23611,704,0621,246,416 143,978,4881,752,662
EXDenditure:RestrictedGrant Expenditure
unrestrictedGrant Expenditure
Establishment and Oth®er ExpensesAdministration ExpensesExpenses on employment 11 849,839 3,421,669
Others Total Expenditure 12 4,705,028 6,929,505
236,861,581 156,082,324
9,960,015 2,921,434Excess of Income over ExpenditureLess: Transferred to Staff Welfare Fund 2,183,430
Balance transferred to General Fund 9,960,015 738,004
Significant Accounting Policies, Notes referred to above form an integral part of Statement of Incomeand Expenditure
`,,...,.
SWASTIForeign Contribution Section
No. 19, 1st Main, 1st Cross, Ashwath Nagar, Bangalore - 560 094
• t &Pa mentsAccountl{ecelpts a r'aymen(s Account
Particulars
Amount (in Rs.) Amount (in Rs.)
For the FY 2015-16 For the FY 2014-15
opening Balance:
A8C(A+8 - C)
53,821,252
172,314Cash on HandCash at Bank 35,379,009
Fixed DepositAdd:Receipts 19,695,334 19,605,38373,516,586 55,156,706
251,151,970 161,426,137Donations & GrantsOther Income 940,576
8,429,491Interest from Designated Bank a/cLess:Pavments 7,115,708259,208,2543,820,293 169,855,628(151,495,748)
Changes in Current Assets, Loans and AdvancesChanges in Current Liabilities and Provisions 3,884,395
Expenses for the year and other utilitiesClosingBalance (232,156,553)
(224,451,865) (151,495,748)
108,272,974 73,516,586
86,028,942 53,821,252Cash on Hand
Cash at BankFixed deposit with Bank of India 22,244,032 19,695,334
108,272,974 73,516,586
`.`, `
•,``` -..- ``.`.,`.`.`.``.,` .
place: BangaloreDate: 24Th i;apwhha 2o(6
Domain/ Donor
1. Sexual Reproductive Health:
Bill & Melinda Gates Foundation
International Initiative for Impact
Evaluation, lnc.
11. Water. Sanltation.Hvelene:
Gap lnc (Urban Wash)
Gap lnc (Rain Harvesting)
WaterAid (Raichur)
Gap lnc (CWP MIS)
lN. Li{e Skills Development:
Walmart Foundation
Gap lnc. -FCRA
GAP -PACE in Community
Levi Strauss Foundation
lsl-WWB-lnditex
Vrutti-Walmart-WOB
BSR-HER Health
Global Fund
lv. Social Enterorlses ProErammes:
DSW . Euroleverage
407J}87 3,342,177
18,348,398 23,132,4 36 2,132,684
5,050,147 13, 7 23,695 89,805
6,232,856
4,605,300
3,074,765
4,823,814
87,960
ftesults for Development (CHMl) 516,733 726,220
Opening Balance
Add/(Less): Surplus/(Deficit) for the year
SWASTI
No. 19, 1st Main, 1st Cross, Ashwath Nagar, Bangalore -560 094
4. Investments
ParticularsAs at As at
31Marl6 31Marl5
Fixed Deposits
Interest accrued on Fixed Deposits
5. Current Assets, Loans and Advances:
22,244,032 19,695,33492,983 192,782
22,337,015 19,888,116
ParticularsAs at As at
31 Marl6 31 Marl5
I. Earmarked Fund ReceivableVrutti-lwRM
Gap lnc-Rain Harvesting
D-Tree International
Lsl-WWB-lnditex
11. Other ReceivablesKHPT-Pragati
Public Health Foundation of India
VruttiFuzhio Health and Business Services Pvt Ltd
Levi Strauss Foundation -Reimbursement
Ill. Cash and Bank BalancesCash on Hand
Cash at Bank
lv. Advances and DepositsStaff Adva ncesAdvance for ProgrammesDepositsOther AdvancesTax Deducted at Source
Total -Current Assets, Loans and Advances
32,316 32,316109,429
344,4321,623
143,368 376,748
3,409,61490,719 90,719
190,395 99,54170,209
54,330335,444 3,670,083
86,028,942 53,821,25286,028,942 53,821,252
921,273 624,2043,876,150 3,984,0952,006,377 2,483,068
31,250 43,994489,336 674,679
7,324,387 7,810,040
93,832,140 65,678,123
SWASTI
No. 19,1st Main, 1st Cross, Ashwath Nagar, Bangalore -560 094
6. Current Liabilities and Provisions:
ParticularsAs at As at
31 Mar 16 31 Mar 15
I. Earmarked Funds returnableWaterAid Raichur
European Union
11. Sundry creditors
Catalyst Management Services Pvt LtdVrutti
Audit Fee payable
Fusion Eventz
Swathi Mahila Sangha
Others
Ill. Expensespayable
lv. Salarypayables
V. Staff lmprest payable
Vl. TDSpayables
VIl. Gratuitypayables
VIII. ProfessionalTax payable
Total -Current Liabilities and Provisions
51,325
1,010,860 908,7571,062,185 908,757
1,387,418 667,325
699,391 479,274125,000 114,000
50,00087,960 25,385
734,264 48,5593,034,033
1,446,6659,390,019
777 '3;SF,
1,572,4483,400
1,384,543
1,476,9617,679,368
239,907
502,9121,209,273
13,189,897 11,108,420
17,286,115 13,401,721
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SWASTI
No. 19, 1st Main, 1st CI.oss, Ashwath Nagar, Bangalore -560 094
8. Interest Income
Particulars
Interest
9. Otherlncome
Particulars
Donation Received
Other Income
10. Administration Expenses
Particulars
General Expenses
Audit Fees
Professional fees
Telephone and fax
Travel and Conveyance
Society Filing Fees
11. Expenses on
Particulars
employment
Staff Salaries
Staff welfare expenseEmployer Contribution to Provident Fund
12. Others
Particulars
For the yearended
31 Mar 2016
For the yearended
31 Mar 2015
7,015,909 8,595,205
7,015,909 8,595,205
For the yearended
31 Mar 2016
73,735
940,576
For the yearended
31 Mar 2015
169,3402,720,5942,889,9341,014,311
For the yearended
31 Mar 2016
669,345125,00097,900
130,196
1,070222,906
For the yearended
31 Mar 2015
961,848114,000108,42953,776
362,535
152,074
1,752,6621,246,4±
For the yearended
31 Mar 2016
532,262
80,603
For the yearended
31 Mar 2015
2,237,1061,057,408
236,974 127,155
849,839
For the yearended
31 Mar 2016
For the yearended
31 Mar 2015
Interest on Earmarked funds transferred to respective projectsGap lnc-Tech
Walmart Foundation
Bill & Melinda Gates Foundation
Staff Welfare Fund
`.,
89,805 207,918
2,132,684 2,273,121
2,476,369 4,448,4666,170
6,929,5054,705,028
13. LEASES
The organization has taken certain office spaces under operating lease basis. The future minimum
lease rental payables towards non-cancellable operating leases as at the balance sheet date are as
below:
(Amount in Rs.)
Particulars As at March 31, 2016 As at March 31, 2015
Not later than one year 9,78,000 25,01,464
Later than one year not later than 5 years 1,12,500 2,55,000
Later than 5 years - -
14. STAFF BENEFIT FUND
Gratuity
The Organization has carried out Gratuity Valuation for the year 2015-16. The gratuity valuation
has been carried out by an actunrial valuator for the FY 2015-16 and Rs.9,53,794/-is the gratuity
expense recognized for the FY 2015-16.
•`. ` `
15. RELATED PARTY DISCLOSURE
As required under "Accounting Standard -18", issued by Institute of Chartered Accountants of
India, the Organization has disclosed the transaction with related parties effected during the FY-
2015-16.
Related parties :
Sl Name of the Relationship Age Qualiflcation
Service RenderedinSwasti/Noof
Specia]isationNo Person years ofAssociation
1.Nandlal Chairperson 65 BA, MBA 8
Human Resource (HR)Management,Organisational
Narayanan Development (OD) andChangeManagement.
2. R.Mohan Treasurer 48B.com'FCA,LLB
12 Chartered Accountant
3. Shiv Kumar Member 48B.Com'PGDRM
12
Health, HIV, governance,naturalresourcemanagement,education,humanresourcesandorganizationaldevelopment.
4.
Wg. Cdr. PENMurthyVSM(Retd)Member 73 LLB 4
Management Trainer andConsultant
5.Dr.AngelaChaudhuri
Director/Spouseofmember40 BDS 12 Master of public health.
Related pairty organization
Sl. Name of the RelationshipNature of Ant. In Fie.
No.1. organization Transactions
Catalyst Management Private Company in which two members of Sub Grant and 1,06,69,675Services Pvt Ltd the Society are shareholders and directors. Technical Support
2. VruttiSociety in which two members of the Sub Grant and 1,13,52,022Society are members. Technical Support
3.
Fuzhio Health &BusinessServices PvtLtd Private Company in which two members of Technical Support 96,30,167the Society are shareholders and directors.
4. Mind MentorFirm in which member of Society is a Technical Support 4,54,360working partner.
5.G.M.Acadamy forleadershipskills(P) Ltd
Private Company in which one of theTechnical Support 9,28,210member of the Society is a shareholder and
director.
6.R Venkatakrishnan and Firm in which member of Society is a Professional fees 1,32,260Associates working partner.
16. General:
Previous year's figures have been regrouped and reclassified wherever necessary to confirm with current
year's presentation.
For MSSV & CoChartered Accountants
Date: 24 th €eptonbeft 2o(6
Place: Bangalore
For Swasti,
/R. Mohan
Treasurer