INDIAN GRAMEEN SERVICES

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Kristin Gregory
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1 Rs in 000s BALANCE SHEET AS ON 31Mar05 31Mar04 LIABILITIES Sch SHAREHOLDERS FUNDS RESERVES AND SURPLUS 2 77,086 72,051 LIVELIHOOD AND MICROFINANCE PROMOTION FUND 9,555 7,112 Liabilities as per contra (account annexed) ASSETS TOTAL 86,723 79,245 FIXED ASSETS Gross Block 3 5,408 4,152 Less: Accumulated Depreciation 2,191 1,737 Net Block 3,217 2,415 INVESTMENTS 4 21,509 21,509 LIVELIHOOD AND MICROFINANCE PROMOTION FUND 9,555 7,112 Assets as per contra (account annexed) CURRENT ASSETS, LOANS AND ADVANCES Cash and Bank balances 5 1,183 2,323 Fixed Deposits with Banks 6 49,814 40,222 Advances and other amounts recoverable in cash or in kind or for value to be received (unsecuredconsidered 6,780 6,612 good) 7 57,776 49,158 LESS: CURRENT LIABILITES AND PROVISIONS 8 5, NET CURRENT ASSETS 52,442 48,209 Fund Based Receipt and Payment Accounts 14 Accounting Policies and Notes to Accounts 15 Total 86,723 79,245 April 23, 2005 Director Managing Director

2 INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31Mar05 Rs in 000s 31Mar04 INCOME Sch Contributions from Foreign and Indian Agencies 9 26,460 10,592 Income from Investments and Fixed Deposits 10 4,725 5,117 Fees from Development Services 11 5,391 7,271 Increase in Stock of Work in Progress Program Service Revenue Other Income Total 37,810 24,205 EXPENDITURE Program Expenditure: Input Material Cost 1, Grant to Rural Beneficiaries Livelihood School Expenses 1,113 Salaries, Allowances and Staff Benefits 12,304 6,276 Travel and Conveyance 6,647 4,840 Professional Charges 5,380 4,157 Vehicle Hire, Running and Maintenance Books, Printing & Stationery Postage and Telecommunications Training Expenses Rent 1, Auditors' Remuneration & Expenses Other Administrative Expenses 13 1,586 1,193 Depreciation Total 32,933 19,342 NET SURPLUS / (DEFICIT) 4,877 4,863 APPROPRIATION 10% of the Interest on Corpus Investments transferred to Corpus Fund Sir Ratan Tata Trust Swiss Agency for Development and Cooperation Surplus/(Deficit) from Livelihood And MicroFinance Promotion Fund Balance transferred to General Reserve 4,611 4,485 Fund Based Receipt and Payment Accounts 14 Accounting Policies and Notes to Accounts 15 April 23, 2005 Director Managing Director

3 Rs in 000s SCHEDULES TO ACCOUNTS AS ON 31Mar05 31Mar04 SCHEDULE 1 : SHARE CAPITAL Authorised: 10,000 Equity Shares of Rs.100 each 1,000 1,000 Issued Subscribed and Paid up: 825 Equity Shares of Rs.100/ each fully paid up SCHEDULE 2: RESERVES AND SURPLUS A: CORPUS FUND Sir Ratan Tata Trust 11,647 11,546 Add: Interest transferred from Appropriation ,732 11,647 Swiss Agency for Development and Cooperation 40,848 40,476 Add: Interest transferred from Appropriation ,187 40,848 B: GENERAL RESERVE Brought forward from previous year 19,556 15,070 Transferred from Income and Expenditure Account 4,611 4,485 24,167 19,556 SCHEDULE 4 : INVESTMENTS Total 77,086 72,051 Sir Ratan Tata Trust Corpus Fund Non Trade Unquoted % Govt. of India Stock Units of Rs 100/ each % Govt. of India Stock ,000 1, Units of Rs 100/ each Swiss Agency for Development and Cooperation Corpus Fund Non Trade Unquoted 8% Govt. of India Bonds ,000 20,000 Units of Rs 1000/ each Fixed Deposits with Scheduled Bank 20,000 Total 21,509 21,509 SCHEDULE 5 : CASH AND BANK BALANCES Cash in Hand Balances with scheduled banks in Current Accounts 1,144 2,276 Total 1,183 2,323 April 23, 2005 Director Managing Director Audited Financial Statements for the period ended March 31, 2005

4 SCHEDULE 3 : FIXED ASSETS AS ON MARCH 31, 2005 Rs in 000s GROSS BLOCK (AT COST) DEPRECIATION NET BLOCK Particulars As at Additions during the period Deletions during the year As at As at Additions during the year Deletions during the year Up to As at As at Furniture and Fixtures 1, , Office Equipment Professional Equipment 2, , ,078 1,698 1,377 Vehicles Community Assets Total 4,152 1, ,408 1, ,191 3,217 2,415 Previous year 3,125 1, ,152 1, ,737 2,415 Notes : Depreciation has been provided on written down method at the rates prescribed by Schedule XIV of the Companies Act, 1956 April 23, 2005 Director Managing Director

5 Rs in 000s SCHEDULES TO ACCOUNTS AS ON 31Mar05 31Mar04 SCHEDULE 6: FIXED DEPOSIT WITH BANKS Corpus Funds Sir Ratan Tata Trust 10,194 10,148 Swiss Agency for Development and Cooperation 20,913 20,874 Operating Funds Intermon Oxfam 9,406 4,569 Interchurch Organisation for Development CoOperation 4,300 Ford Foundation 4,100 Sir Dorabji Tata Trust 900 Others 4,631 Total 49,814 40,222 SCHEDULE 7: ADVANCES AND OTHER AMOUNTS RECOVERABLE IN CASH Sundry Debtors Less than six months 944 1,165 Stock of work in progress Advances to Rural Producers Lac pilot operations funded by Interchurch Organisation for Development CoOperation 314 Others 139 Other Advances TDS Recoverable 1, Rent Deposits Prepaid Expenses Telephone Deposits Interest Accrued on Deposits and Investments 1, Due from Livelihood and Microfinance Promotion Fund (LAMP) 2,007 2,039 Total 6,780 6,612 SCHEDULE 8 : CURRENT LIABILITIES AND PROVISIONS Current Liabilities Consultancy Fee Received in Advance 1, Sundry Creditors 1, Due to Bhartiya Samruddhi Finance Limited 1,937 Cash Security an Advance to Rural Producers 62 Statutory Dues Total 5, April 23, 2005 Director Managing Director Audited Financial Statements for the period ended March 31, 2005

6 Rs in 000s SCHEDULES TO ACCOUNTS FOR THE YEAR ENDED 31Mar05 31Mar04 SCHEDULE 9 : CONTRIBUTIONS FROM FOREIGN AND INDIAN AGENCY FOREIGN Ford Foundation 8,680 ETC Consultants India Private Limited 398 Intermom Oxfam 6,176 4,569 Interchurch Organisation for Development CoOperation 4,804 Department for International Development 200 Swiss Agency for Development and Cooperation 2,400 INDIAN ICICI Bank Limited 2,800 Sir Dorabji Tata Trust 2,500 SIDBI Ministry of Rural Development, Government of India 3,200 Total 26,460 10,592 SCHEDULE 10 : INCOME FROM INVESTMENTS AND FIXED DEPOSITS ON CORPUS FUND Sir Ratan Tata Trust 857 1,009 Swiss Agency for Development and Cooperation 3,387 3,718 OTHER FUND Total 4,725 5,117 SCHEDULE 11 : FEE FROM DEVELOPMENT SERVICES Institutional Development 1,254 2,429 Indian School of Livelihood Promotion 2, Action Research And Consultancy 1,662 4,634 Total 5,391 7,271 SCHEDULE 12 : INCREASE IN STOCK OF WORK IN PROGRESS Institutional Development Action Research And Consultancy 129 Total SCHEDULE 13: OTHER ADMINISTRATIVE EXPENSES Office Maintenance Insurance Cost of Assets, Emplyees Meeting Expenses Electricity & Water Bank Charges Repairs & Maintenance Rates and Taxes Misc. Expenses Total 1,586 1,193 April 23, 2005 Director Managing Director

7 SCHEDULE 14: FUND BASED RECEIPTS AND PAYMENTS ACCOUNT AS ON MARCH 31, 2005 S.N o. PARTICULARS Reference SDC CORPUS GRANT OXFAM FOREIGN CONTRIBUTIONS FF ISLP FF SCHOOL Pilot PLANNING Operations in MP & AP OPENING BALANCE ( ) A 4,445 4, RECEIPTS DURING THE YEAR B Rs. In 000s FF ISLP Establishing 1 Contributions from Foreign Agency 6,176 3,696 4,984 2 Contributions from Indian Agency 3 Interest on Deposits & Investments 3, Development Service Charges 5 Increase in Stock of Work in Progress 6 Fees from ISLP Services 7 Other Income 8 Management Fee 9 Program Service Revenue 3,387 6,535 3,696 4,984 TOTAL FUNDS AVAILABLE C=(A+B) 7,832 11, ,696 4,984 APPLICATIONS OF FUND EXPENDITURE RECURRING D 1 Salaries and Staff Benefits 3, Training Expenses 68 3 Travel and Conveyance 1, Books, Printing and Stationery Postage and Telecommunications Vehicle Hiring and Maintenance Auditors' Remuneration & Expenses Professional Services , Rent Grant to Rural Beneficiaries 11 Other Administrative Expenses Management Fee 13 Livelihood School Expenses Program Expenditure: Input Material Cost 1, ,695 1, , EXPENDITURE NON RECURRING E 1 Furniture and Fixtures 63 2 Office Equipment 27 3 Professional Equipment TOTAL EXPENDITURE F=(D+E) 8,695 1, ,549 1,075 FUNDS AVAILABLE/(SHORTFALL) G=CF (862) 9,701 (0) 147 3,908 CORPUS GRANTS H 40,848 INVESTMENTS OF FUNDS I 40,913 9,406 4,100 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND J PILOT LENDING OPERATIONS K 139 LOAN/OPERATING GRANT TO FEDERATIONS L DEFICIT/TRANSFER OF FUNDS M CLOSING BALANCE N=G+( HI JK L)+M (1,066) 295 (0) 147 (192) Hyderabad April 23, 2005 Director Managing Director

8 SCHEDULE 14: FUND BASED RECEIPTS AND PAYMENTS ACCOUNT AS ON MARCH 31, 2005 FOREIGN CONTRIBUTIONS Rs. In 000s S.N o. PARTICULARS Reference FF LLG FF CASE STUDIES ICCO ETC Consultants India Pvt Ltd DFID PACS FOREIGN TOTAL OPENING BALANCE ( ) A 9,994 RECEIPTS DURING THE YEAR B 1 Contributions from Foreign Agency 2 Contributions from Indian Agency 3 Interest on Deposits & Investments 4 Development Service Charges 5 Increase in Stock of Work in Progress 6 Fees from ISLP Services 7 Other Income 8 Management Fee 9 Program Service Revenue 4, ,257 3, , , ,069 TOTAL FUNDS AVAILABLE C=(A+B) , ,062 APPLICATIONS OF FUND EXPENDITURE RECURRING D 1 Salaries and Staff Benefits 2 Training Expenses 3 Travel and Conveyance 4 Books, Printing and Stationery 5 Postage and Telecommunications 6 Vehicle Hiring and Maintenance 7 Auditors' Remuneration & Expenses 8 Professional Services 9 Rent 10 Grant to Rural Beneficiaries 11 Other Administrative Expenses 12 Management Fee 13 Livelihood School Expenses 14 Program Expenditure: Input Material Cost EXPENDITURE NON RECURRING 1 Furniture and Fixtures 2 Office Equipment 3 Professional Equipment E , , , , , TOTAL EXPENDITURE F=(D+E) ,410 FUNDS AVAILABLE/(SHORTFALL) G=CF ,465 (45) ,652 CORPUS GRANTS H 40,848 INVESTMENTS OF FUNDS I 4,300 58,719 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND J PILOT LENDING OPERATIONS K LOAN/OPERATING GRANT TO FEDERATIONS DEFICIT/TRANSFER OF FUNDS L M (102) (102) CLOSING BALANCE N=G+( HI JK L)+M (0) 105 (149) (45) 131 (774) Hyderabad April 23, 2005 Director Managing Director

9 SCHEDULE 14: FUND BASED RECEIPTS AND PAYMENTS ACCOUNT AS ON MARCH 31, 2005 S.N o. PARTICULARS OPENING BALANCE ( ) RECEIPTS DURING THE YEAR Reference A B SRTT ICICI BANK LTD INDIAN CONTRIBUTIONS MoRD SDTT ISLP Pilot Operations in JK & AP Rs. In 000s SIDBI (134) 1,673 (784) 1 Contributions from Foreign Agency 2 Contributions from Indian Agency 3 Interest on Deposits & Investments 4 Development Service Charges 5 Increase in Stock of Work in Progress 6 Fees from ISLP Services 7 Other Income 8 Management Fee 9 Program Service Revenue TOTAL FUNDS AVAILABLE APPLICATIONS OF FUND EXPENDITURE RECURRING C=(A+B) D 2,800 2, , , ,800 1,698 2, Salaries and Staff Benefits 2 Training Expenses 3 Travel and Conveyance 4 Books, Printing and Stationery 5 Postage and Telecommunications 6 Vehicle Hiring and Maintenance 7 Auditors' Remuneration & Expenses 8 Professional Services 9 Rent 10 Grant to Rural Beneficiaries 11 Other Administrative Expenses 12 Management Fee 13 Livelihood School Expenses 14 Program Expenditure: Input Material Cost EXPENDITURE NON RECURRING 1 Furniture and Fixtures 2 Office Equipment 3 Professional Equipment E 208 1, ,330 1,955 1,615 1, TOTAL EXPENDITURE FUNDS AVAILABLE/(SHORTFALL) CORPUS GRANTS INVESTMENTS OF FUNDS LIVELIHOOD AND MICRO FINANCE PROMOTION FUND PILOT LENDING OPERATIONS F=(D+E) G=CF H I J K ,494 1,955 1,615 1,555 (209) (694) (257) 885 (1,436) 11,647 11, LOAN/OPERATING GRANT TO FEDERATIONS DEFICIT/TRANSFER OF FUNDS L M CLOSING BALANCE N=G+( HI JK L)+M (266) (694) (257) (15) (1,436) Hyderabad April 23, 2005 Director Managing Director

10 SCHEDULE 14: FUND BASED RECEIPTS AND PAYMENTS ACCOUNT AS ON MARCH 31, 2005 INDIAN CONTRIBUTIONS Rs. In 000s S.N o. PARTICULARS Reference Institutional Development Services ARC ISLP General IGS GENERAL FUND INDIAN TOTAL OPENING BALANCE ( ) A 4,219 4,975 RECEIPTS DURING THE YEAR B 1 Contributions from Foreign Agency 2 Contributions from Indian Agency 3 Interest on Deposits & Investments 4 Development Service Charges 5 Increase in Stock of Work in Progress 6 Fees from ISLP Services 7 Other Income 8 Management Fee 9 Program Service Revenue 6, , , ,410 1, , ,410 1,529 12,741 TOTAL FUNDS AVAILABLE C=(A+B) 2, ,410 5,748 17,716 APPLICATIONS OF FUND EXPENDITURE RECURRING D 1 Salaries and Staff Benefits 2 Training Expenses 3 Travel and Conveyance 4 Books, Printing and Stationery 5 Postage and Telecommunications 6 Vehicle Hiring and Maintenance 7 Auditors' Remuneration & Expenses 8 Professional Services 9 Rent 10 Grant to Rural Beneficiaries 11 Other Administrative Expenses 12 Management Fee 13 Livelihood School Expenses 14 Program Expenditure: Input Material Cost EXPENDITURE NON RECURRING E 506 1, , , (247) 2, , ,886 2, ,453 15,366 1 Furniture and Fixtures 2 Office Equipment 3 Professional Equipment TOTAL EXPENDITURE F=(D+E) 1,886 2, ,242 16,319 FUNDS AVAILABLE/(SHORTFALL) G=CF 238 (1,956) 1,319 3,505 1,397 CORPUS GRANTS H 11,647 INVESTMENTS OF FUNDS I 12,603 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND J 2,131 2,131 PILOT LENDING OPERATIONS K LOAN/OPERATING GRANT TO FEDERATIONS DEFICIT/TRANSFER OF FUNDS L M CLOSING BALANCE N=G+( HI JK L)+M 238 (1,956) 1,422 1,375 (1,589) Hyderabad April 23, 2005 Director Managing Director

11 SCHEDULE 14: FUND BASED RECEIPTS AND PAYMENTS ACCOUNT AS ON MARCH 31, 2005 LAMP FUND Rs. In 000s S.N o. PARTICULARS Reference GRAND TOTAL DID MICRO FINANCE FUND IGS FUND TOTAL OPENING BALANCE ( ) A 14,968 RECEIPTS DURING THE YEAR 1 Contributions from Foreign Agency 2 Contributions from Indian Agency 3 Interest on Deposits & Investments 4 Development Service Charges 5 Increase in Stock of Work in Progress 6 Fees from ISLP Services 7 Other Income 8 Management Fee 9 Program Service Revenue B 20,257 6,203 4, , , , TOTAL FUNDS AVAILABLE C=(A+B) 52, APPLICATIONS OF FUND EXPENDITURE RECURRING 1 Salaries and Staff Benefits 2 Training Expenses 3 Travel and Conveyance 4 Books, Printing and Stationery 5 Postage and Telecommunications 6 Vehicle Hiring and Maintenance 7 Auditors' Remuneration & Expenses 8 Professional Services 9 Rent 10 Grant to Rural Beneficiaries 11 Other Administrative Expenses 12 Management Fee 13 Livelihood School Expenses 14 Program Expenditure: Input Material Cost EXPENDITURE NON RECURRING D E 12, , ,380 1, , ,113 1,349 32, Furniture and Fixtures 2 Office Equipment 3 Professional Equipment ,256 TOTAL EXPENDITURE F=(D+E) 33, FUNDS AVAILABLE/(SHORTFALL) G=CF 19, CORPUS GRANTS H 52,495 8,313 2,000 10,313 INVESTMENTS OF FUNDS I 71,323 5,739 2,012 7,751 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND J 2,131 PILOT LENDING OPERATIONS K 453 LOAN/OPERATING GRANT TO FEDERATIONS L DEFICIT/TRANSFER OF FUNDS M CLOSING BALANCE N=G+( HI JK L)+M (2,363) 1, ,989 Hyderabad April 23, 2005 Director Managing Director

12 SCHEDULE 15: NOTES ON ACCOUNTS I. ACCOUNTING POLICIES: a) In respect of its developmental activities carried on by the company, the company follows a Cash Basis of accounting for grants received and its related expenses, except known liabilities, which are provided for in the books. The company also maintains a fund based accounting system, a summary of which is shown in Schedule 14. b) Revenue Recognition: i) Interest on loans is recognized on accrual basis, as per contracts with the borrowers. ii) In respect of service contracts income is recognized on the Completion of the Contract or completion of any deliverable as may have been specified in the contract, less any advance received during the execution of the contract. iii) In respect of service contracts where it has not reached the stage of billing or completion of deliverable, the actual cost incurred is taken as value of work in progress. c) Fixed Assets: Fixed Assets are stated in the books at the historical cost inclusive of all incidental expenses incurred for acquisition of such assets. d) Investments: All current and longterm investments are valued at lower of cost or market value. During the year few investments were matured and further invested in fixed deposits with banks. e) Depreciation: Depreciation is provided on the written down value Method at the stated rates as stated under Schedule XIV of the Companies Act 1956: Class of fixed assets Rate of depreciation Furniture & Fixtures 18.10% Office Equipment 13.91% Professional Equipment 13.91% Vehicles 25.89% Depreciation is provided on pro rata basis from the day the asset is being put to use. f) Retirement Benefits: The company has schemes of retirement benefits of provident fund and gratuity fund in respect of which the Company s contribution to the funds are charged to the income and expenditure account. The gratuity benefits of the company are administered by a trust formed for this purpose through the schemes of Life

13 Insurance Corporation of India. Gratuity is being computed as per statutory norms and paid into the trust. II. NOTES TO ACCOUNTS 1) CONTINGENT LIABILITIES During the year the Office of the Commissioner of Customs and Central Excise, Hyderabad has issued a show cause notice claiming a service tax of Rs. 7,88,705 for services rendered by the company for the period August 10, 1999 to March 31, 2004 on the total value of services Rs.1,20,41,395. The company has made a submission contending that the services are either not chargeable or exempt from the purview of service tax. The case is pending with the department. The company has paid Rs. 2 lakhs under protest and the amount has been charged as expenditure. The balance amount of Rs. 5,88,705 remains unpaid and is shown as contingent liability. 2) SHARE CAPITAL Out of the entire share capital of 825 equity shares of Rs.100/ each, 811 equity shares are held by holding company, Bhartiya Samruddhi Investments and Consulting Services Limited. CORPUS FUNDS FUNDER Opening Balance Additions during the year Reduction during the year Rs. In 000s Closing Balance CORPUS FUND Sir Ratan Tata Trust 11, ,740 Swiss Agency for Development and Cooperation 40, ,187 TOTAL 52, ,927 In order to protect the value of the corpus fund against inflation the company invests following amount into the corpus fund at the end of each year. i) 10% of the interest earned or unutilized portion of interest whichever is greater, as per Section e of the agreement with Sir Ratan Tata Trust. ii) 10% of the interest earned on the corpus fund investment from Swiss Agency for Development Cooperation, which in the judgment of the Company hedges against inflation as per Section 3 of the Agreement. Rs. In 000s FUNDER INVESTMENTS FIXED TOTAL DEPOSITS Sir Ratan Tata Trust 1,509 10,194 11,703 Swiss Agency for Development 20,000 20,913 40,913 and Cooperation TOTAL 21,509 31,107 52,616

14 3) OPERATIONS IGS is involved in research and development (R&D) for identifying appropriate livelihood opportunities and intervention points for supporting rural producers. In addition IGS builds the implementation (HRD) capabilities of various institutions, involved in supporting different aspects of livelihoods, including various community based organizations, and BASIX group companies. The Company earns consultancy fees for these R&D and HRD activities from various sources including from BASICS Ltd, holding company. 4) TECHNICAL ASSISTANCE FOR EXPLORATION INTO NEWER AREAS The Company, in terms of support provided by the Swiss Agency for Development and Cooperation has undertaken activities to explore the possibilities of enhancement and promotion of livelihoods in rural areas with extension of micro credit for such livelihood promotion, through commercial banks and other financial institutions including two of the companies under the same management viz. Bhartiya Samruddhi Finance Ltd., and Krishna Bhima Samruddhi Local Area Bank Ltd., both of which are micro finance institutions. Also pilot operations is continued in Cotton, Soya through Bhopal Unit, MPLEAP and the total advances amounting to Rs.1.39 Lakhs covering 62 rural producers. With the funding support of ICCO the second phase of lending for Lac extended during the year at Ranchi Unit, JKLEAP. As part of the project 50% of the support cost is covered as loan losses incase if they are nonrecoverable. 5) LIVELIHOOD AND MICRO FINANCE PROMOTION FUND: Development international Desjardins (DID) has created a fund from the Loan repayments of Bhartiya Samruddhi Finance Limited along with the interest. As of now only interest has been repaid which can be used for financing other emerging micro finance institutions. The company has committed sum of Rs 30 Lakh by Loan/Grant to four parties, out of which the company has disbursed a loan of Rs. 10 Lakh to four clients, Indore, which is shown in Schedule 1 of (Livelihood And Micro Finance Promotion Fund). 6) REMUNERATION TO MANAGING DIRECTOR Remuneration to Managing Director since July 24, 2004 is amounting to Rs.8.02Lakhs. Rs. In 000s Particulars March 31, 05 March 31, 04 Salaries and 0ther benefits 758 Contribution to Provident Fund 44 Account Total 802

15 7) DETAILS OF AUDITOR S REMUNERATION Rs. In 000s Particulars March 31, 05 March 31, 04 Audit Fee Fee for Certification 5 11 Taxation Out of Pocket Expenses Total ) MISCELLANEOUS: a) Additional information pursuant to paragraph 4 C and 4D of part B of Schedule VI of the Companies Act, 1956 None. b) Since the company is a company registered under section 25 of the Companies Act, 1956 as a nonprofit company and that it has complied with the provisions of Income Tax Act, 1961 relating to the charitable organizations, no provision for taxation is considered necessary. c) Previous year figures have been regrouped and rearranged wherever necessary. April 23, 2005 (V.NAGARAJAN) Director Managing Director

16 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND Rs in 000s BALANCE SHEET AS ON 31Mar05 31Mar04 LIABILITIES Sch DIDMICRO FINANCE FUND 1 7,548 5,073 INDIAN GRAMEEN SERVICES Contribution to Livelihood And Micro Finance Experimentation Fund 2,007 2,039 ASSETS TOTAL 9,555 7,112 CURRENT ASSETS, LOANS AND ADVANCES Balances with Scheduled banks in Current Account 1,333 Fixed Deposits Developpment international 5,699 2,995 Desjardins, Micro Finance Fund Livelihood And Micro Finance 2, Experimentation Fund Loans and Advances Loans to Rural Producers 1,098 TDS recoverable 1, Interest Accrued on Deposits with bank ,555 7,442 LESS:CURRENT LIABILITES AND PROVISIONS Current Liabilities NET CURRENT ASSETS 9,555 7,112 Fund Based Receipt and Payment Accounts 14 Accounting Policies and Notes to Accounts 15 Total 9,555 7,112 April 23, 2005 Director Managing Director

17 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED INCOME 31Mar05 Rs in 000s 31Mar04 Interest on Fixed Deposits Developpment international Desjardins, Micro Finance Fund Livelihood And Micro Finance Promotion Experimentation Fund Management Fee Total EXPENDITURE Other Administrative Expenses 1 Total 1 NET SURPLUS / (DEFICIT) Surplus/(Deficit) brought forward from last account 95 (37) Interest on DID Fund Investments transferred to DID Fund Balance transferred to Indian Grameen Services Fund Based Receipt and Payment Accounts 14 Accounting Policies and Notes to Accounts 15 for INDIAN GRAMEEN SERVICE April 23, 2005 Director Managing Director

18 LIVELIHOOD AND MICRO FINANCE PROMOTION FUND Rs in 000s SCHEDULES TO ACCOUNTS AS ON 31Mar05 31Mar04 SCHEDULE 1 : DID MICRO FINANCE FUND Opening Balance 5,073 2,558 Add: Additions during the period 3,519 2,728 Accumulated Interest Loan Repayments from Federations 318 Less: Management Fees (107) (41) Reimbursement of Expenses (369) (330) Less: Loans to Federations (1,000) Grants to Federations (54) Total Fund Balance 7,548 5,073 April 23, 2005 Director Managing Director

BALANCE SHEET ABSTRACT AND COMPANY S GENERAL BUSINESS PROFILE. Registration No State Code 55. Balance Sheet Date

ANNEXURE-A TO DIRECTORS REPORT BALANCE SHEET ABSTRACT AND COMPANY S GENERAL BUSINESS PROFILE I Registration Details Registration No. 55-99328 State Code 55 Balance Sheet Date 31 03 2000 Date Month Year